HomeMy WebLinkAboutAnnual Financial Report 2024
City of San Luis Obispo, CA
Annual Com prehensive Financial Report
Fiscal Year Ended June 30, 2024
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Sitting at just under 1300 feet, Cerro San Luis Obispo (often referred to as Madonna) lies in the heart
of the city of San Luis Obispo. This picture, taken from the North West face looks out towards Foothill
Blvd and three of the Nine Sisters: Bishop Peak, Chumash Peak, and Cerro Romualdo (from closest to
furthest). A common misconception is that the "M" on the East face refers to "Madonna" or
"Mustang." The "M" actually stands for Mission College Preparatory Catholic High School which can
be viewed from where the "M" lies on the peak.
Picture Credit: @dfloyd805 (via Instagram)
About the Cover
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Fiscal Year Ended June 30, 2024
ERICA A. STEWART, MAYOR
MICHELLE SHORESMAN, VICE MAYOR
MIKE BOSWELL, COUNCIL MEMBER
EMILY FRANCIS, COUNCIL MEMBER
JAN MARX, COUNCIL MEMBER
Whitney McDonald, CITY MANAGER
Prepared by the Department of Finance
Emily Jackson, Finance Director
Debbie Malicoat, Deputy Finance Director/Controller
Tavy Garcia, Senior Accountant
Courtney Miles, Accountant
City of San Luis Obispo, California
www.slocity.org
City of San Luis Obispo, California
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2024
Table of Contents
Page
Introductory Section
Transmittal Memorandum ........................................................................................................................................................... 1-20
Report Purpose and Organization ................................................................................................................................................. 2
Profile of the City of San Luis Obispo ......................................................................................................................................... 4
Factors Affecting Financial Condition and Major Initiatives ....................................................................................................... 6
Financial Condition Overview .................................................................................................................................................... 11
Relevant Financial Policies ......................................................................................................................................................... 14
Award for Excellence in Financial Reporting ............................................................................................................................ 19
Acknowledgments ...................................................................................................................................................................... 20
Directory of Officials and Advisory Bodies ................................................................................................................................... 21
City Council ................................................................................................................................................................................ 21
Advisory Bodies ......................................................................................................................................................................... 21
Appointed Officials and Department Heads ............................................................................................................................... 21
Mission Statement .......................................................................................................................................................................... 22
Organizational Values .................................................................................................................................................................... 23
Organization of the City of San Luis Obispo ................................................................................................................................. 25
GFOA Certificate .......................................................................................................................................................................... 26
Financial Section
Independent Auditors’ Report ................................................................................................................................................... 29-32
Management’s Discussion and Analysis ................................................................................................................................... 33-57
Overview of the Financial Statements ........................................................................................................................................ 33
Financial Highlights ................................................................................................................................................................... 36
Government-Wide Financial Analysis ........................................................................................................................................ 40
Financial Analysis of Governmental Funds ................................................................................................................................ 43
Financial Analysis of Enterprise Funds ...................................................................................................................................... 46
Combined Program Expense and Revenue for Business-Type Activities .................................................................................. 49
General Fund Budgetary Highlights ........................................................................................................................................... 50
Capital Asset and Debt Administration ...................................................................................................................................... 53
Economic Factors and Next Year’s Budget and Rates ............................................................................................................... 54
Requests for Additional Information .......................................................................................................................................... 57
City of San Luis Obispo, California
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2024
Table of Contents Page 2
Page
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Position ........................................................................................................................................................ 63
Statement of Activities ............................................................................................................................................................ 64
Fund Financial Statements:
Balance Sheet – Governmental Funds ..................................................................................................................................... 67
Reconciliation of the Governmental Funds Balance Sheet to the
Government-wide Statement of Net Position ...................................................................................................................... 68
Statement of Revenues, Expenditures and Changes in Fund Balance –
Governmental Funds ........................................................................................................................................................... 69
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund
Balance to the Government-wide Statement of Activities ................................................................................................... 71
Statement of Fund Net Position Business-Type Activities – Enterprise Funds .................................................................. 75-76
Statement of Revenues, Expenses and Changes in Fund Net Position Business-Type Activities –
Enterprise Funds .................................................................................................................................................................. 77
Statement of Cash Flows Business-Type Activities – Enterprise Funds ............................................................................ 78-79
Statement of Fiduciary Net Position - Fiduciary Funds .......................................................................................................... 83
Statement of Changes in Fiduciary Net Position - Fiduciary Funds ....................................................................................... 84
Notes to the Basic Financial Statements .............................................................................................................................. 85-132
Required Supplementary Information Section
Budgetary Comparison Schedule – General Fund ............................................................................................................. 135-138
Schedule of the Changes in the Net Pension Liability and Related Ratios – Miscellaneous
Agent Multiple – Employer Plan .......................................................................................................................................... 139
Schedule of the Pension Plan Contributions – Miscellaneous Agent Multiple – Employer Plan ............................................. 140
Schedule of the City’s Proportionate Share of the Net Pension Liability – Safety Cost-Sharing Plan ..................................... 141
Schedule of the City’s Pension Contributions – Safety Cost-Sharing Plan .............................................................................. 142
Schedule of the Changes in the Net OPEB Liability and Related Ratios ................................................................................. 143
Schedule of Employer OPEB Contributions ............................................................................................................................. 144
Notes to Required Supplementary Information ........................................................................................................................ 145
City of San Luis Obispo, California
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2024
Table of Contents Page 3
Page
Other Supplementary Information and Combining and Individual Fund Statements and Schedules
Local Transaction Tax Measure Funding Schedule ........................................................................................................... 150-153
Nonmajor Governmental Funds ........................................................................................................................................ 155-158
Combing Balance Sheet – Nonmajor Governmental Funds .............................................................................................. 160-167
Combining Statement of Revenues, Expenditures and Changes in Fund Balance
- Nonmajor Governmental Funds ................................................................................................................................... 168-175
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:
Downtown Business Improvement District Fund ................................................................................................................. 176
Transportation Development Act (TDA) Fund ..................................................................................................................... 177
Tourism Business Improvement District Fund ...................................................................................................................... 178
Gas Tax Fund ........................................................................................................................................................................ 179
Community Development Block Grant (CDBG) Fund ......................................................................................................... 180
Law Enforcement Grants Fund ............................................................................................................................................. 181
Public Art Contributions Fund .............................................................................................................................................. 182
Avila Ranch CFD .................................................................................................................................................................. 183
SB1 Road Repair Fund ......................................................................................................................................................... 184
SB1186 ASP Certify ............................................................................................................................................................. 185
Affordable Housing BEGIN Loan Fund ............................................................................................................................... 186
Avila Ranch DPA Fund ........................................................................................................................................................ 187
Debt Service Fund ................................................................................................................................................................. 188
Custodial Funds ........................................................................................................................................................................ 189
Combining Statement of Fiduciary Net Position – Custodial Funds .............................................................................. 190-191
Combining Statement of Changes in Fiduciary Net Position – Fiduciary Funds............................................................ 192-193
Statistical Section
Statistical Section – Overview (Unaudited) .............................................................................................................................. 197
Financial Trends:
Net Position by Component – Last Ten Fiscal Years ............................................................................................................ 198
Changes in Net Position – Last Ten Fiscal Years ........................................................................................................... 199-200
Governmental Activities Tax and Franchise Revenues by Source – Last Ten Fiscal Years ................................................. 201
Fund Balances, Governmental Funds – Last Ten Fiscal Years ...................................................................................... 202-203
Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years ................................................................................................................................................. 204-206
General Fund Operating Expenditure Trends by Type – Last Ten Fiscal Years ................................................................... 207
City of San Luis Obispo, California
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2024
Table of Contents Page 4
Page
Statistical Section (Continued)
Revenue Capacity:
Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ........................................................... 208
Property Tax Rates – Last Ten Fiscal Years .......................................................................................................................... 209
Principal Property Taxpayers – Current Year and Nine Years Ago ...................................................................................... 210
Secured Property Tax Roll Levies and Collections – Last Ten Fiscal Years ......................................................................... 211
Schedule of Taxable Sales and Permits by Category – Last Ten Calendar Years ................................................................. 212
Historical Sales and Use Tax Rates ....................................................................................................................................... 213
Schedule of Business Tax Certificates Issued ....................................................................................................................... 214
Debt Capacity:
Per Capital Outstanding Debt by Type – Last Ten Fiscal Years ........................................................................................... 215
Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capita
Last Ten Fiscal Years ........................................................................................................................................................ 216
Direct and Overlapping Long-Term Debt – Fiscal Year Ended June 30, 2023 ..................................................................... 217
Computation of Legal Debt Margins – Last Ten Fiscal Years .............................................................................................. 218
Revenue Bond Coverage:
Water Fund – Last Ten Fiscal Years ..................................................................................................................................... 219
Parking Fund – Last Ten Fiscal Years .................................................................................................................................. 220
Demographic and Economic Information:
Demographic and Economic Statistics – Last Ten Fiscal Years ........................................................................................... 221
Principal Employers – Current Year and Nine Years Ago .................................................................................................... 222
Regular Authorized Positions – Last Ten Fiscal Years ......................................................................................................... 223
Operating Information:
Operating Indicators and Capital Asset Statistics by Function – Last Ten Fiscal Years ................................................ 224-227
Water System Statistical Data ............................................................................................................................................... 228
Water and Sewer Rates – Last Ten Fiscal Years ............................................................................................................ 229-230
Water System Ten Largest Users – Fiscal Year Ended June 30, 2023 .................................................................................. 231
INTRODUCTORY SECTION
City of San Luis Obispo, Finance and Information Technology, 990 Palm Street, San Luis Obispo, CA, 93401-3249, 805.781.7130,
slocity.org
Date December 24, 2024
TO: The Honorable Mayor and Members of the City Council and Citizens of the
City of San Luis Obispo
FROM: Whitney McDonald, City Manager
Emily Jackson, Finance Director
SUBJECT: TRANSMITTAL MEMORANDUM FOR ANNUAL COMPREHENSIVE
FINANCIAL REPORT FOR FISCAL YEAR 2023-24
We are pleased to submit the City of San Luis Obispo’s 2023-24 Annual Comprehensive
Financial Report (ACFR). Section 810 of the City’s Charter requires that an audit of the City
financial records be conducted each year by an independent certified public accountant. Such
an audit has been performed and this report is being published as part of the requirement for
the fiscal year ended June 30, 2024, within applicable timelines.
Though the audit is conducted by an independent certified public account firm, City
management assumes full responsibility for the completeness and reliability of the
information contained in this report. We attest that, to the best of our knowledge, the data
presented is accurate in all material respects, and all statements and disclosures needed for the
reader to obtain a thorough understanding of the City’s financial activities have been included.
To provide a reasonable basis for making these representations, management of the City has
established a comprehensive internal control and review framework that is designed both to
protect the government’s assets from loss, theft, or misuse and to compile sufficient and
reliable information for the preparation of the City’s financial statements in conformity with
U.S. Generally Accepted Accounting Principles (GAAP). Because the cost of internal controls
should not outweigh their benefits, the City’s comprehensive framework of internal controls
has been designed to provide reasonable rather than absolute assurance that the financial
statements will be free from material misstatement. However, internal controls are critically
reviewed by the auditors annually and Finance staff throughout the year to assure compliance
with applicable Governmental Accounting Standards Board (GASB) rules and best practices
in government accounting. Additionally, the City’s governing body receives reports on a
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TRANSMITTAL MEMORANDUM
quarterly basis and additional reports in accordance with State requirements are posted online
on the City’s website at www.slocity.org.
REPORT PURPOSE AND ORGANIZATION
Audited Financial Statements
The City’s financial statements were audited by Badawi and Associates, a firm of licensed
certified public accountants currently under contract with the City. The goal of the
independent audit was to provide reasonable assurance that the financial statements of the
City for the fiscal year ended June 30, 2024, are free of material misstatement. The
independent audit involved examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements; assessing the overall accounting principles used and
significant estimates1 made by management; and evaluating the overall financial statement
presentation.
The independent auditor concluded that the City’s financial statements present fairly2, in all
material respects, the respective financial position of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of the City as
of June 30, 2024. They also fairly represent the respective changes in financial position, and,
where applicable, cash flows in accordance with accounting principles generally accepted in
the United States of America. The independent auditors’ report is presented as the first
component of the financial section of this report beginning on page 29.
“Single Audit” for Federal Grant Programs. The independent audit of the financial
statements of the City was part of a broader, federally mandated “Single Audit” designed to
meet the special needs of Federal grantor agencies. The standards governing Single Audit
engagements require the independent auditor to report not only on the fair presentation of the
financial statements, but also on the audited government’s internal controls3 and compliance
with legal requirements, with special emphasis on the administration of Federal awards (such
as Transit funding). This audit has been completed and will be filed and distributed to
appropriate agencies to meet Federal requirements and deadlines.
1 Significant estimates included in the financial statements are made in conformity with GAAP.
2 The Term “present fairly” means that the financial statements give a reasonable view of the financial results, financial position, and cash-flow of the reporting
entity.
3 Internal controls are systematic measures instituted by an organization to conduct its business in an orderly and efficient manner; safeguard its assets and
resources; deter and detect errors, fraud, and theft; ensure accuracy and completeness of its accounting data; produce reliable and timely financial and
management information; and ensure adherence to its policies and plans.
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TRANSMITTAL MEMORANDUM
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management’s Discussion and
Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and
should be read in conjunction with it. The City’s MD&A can be found immediately following
the report of the independent auditors beginning on page 33.
Organization of the Annual Comprehensive Financial Report
The report is presented in three sections: introductory, financial, and statistical.
SECTION ONE - The Introductory section includes this transmittal memorandum and other
information to familiarize the reader with the City, including a directory of officials and
advisory bodies, the City's mission statement and organizational values, and charts.
SECTION TWO - The Financial section consists of six parts: 1) the independent auditors’
report; 2) Management’s Discussion and Analysis; 3) the basic financial statements including
the government-wide financial statements; 4) fund financial statements; 5) notes to the
financial statements; and 6) required supplementary information; and additional statements
and schedules including the local transaction tax information, non-major governmental funds,
and agency funds.
SECTION THREE - The Statistical section includes selected unaudited financial and
demographic information generally presented on a multi-year basis. This information includes
financial trends, revenue trends, debt capacity, demographics, and economic and operating
information. This section also contains important information for the benefit of the required
bond disclosures and rating agencies.
As required by GAAP, these financial statements present the City (the primary government)
and its component units (entities for which the government is financially accountable).
Blended component units (although legally separate entities) are in substance part of the
government's operations, and so data from these units are combined with data of the primary
government. The City has three component units, the San Luis Obispo Capital Improvement
Board and the San Luis Obispo Public Financing Authority, both of which provide financing
for the construction and acquisition of City facilities, and the San Luis Obispo Parking
Authority. The Board/Authority is comprised solely of members of the City Council.
Activities of the Board/Authority are accounted for in the applicable City governmental or
enterprise funds.
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TRANSMITTAL MEMORANDUM
PROFILE OF THE CITY OF SAN LUIS OBISPO
With a population of about 48,700, the City is located eight miles from the Pacific Ocean and
is midway between San Francisco and Los Angeles at the junction of Highway 101 and scenic
Highway 1. The City serves as the commercial, governmental, and cultural hub of San Luis
Obispo County. San Luis Obispo is the county seat, a number of Federal and State regional
offices and facilities are located within the City, and California Polytechnic State University
and Cuesta College are in its sphere of influence. The City’s ideal weather and natural beauty
provide numerous opportunities for outdoor recreation at nearby City and State parks, lakes,
beaches, and open space areas.
One of California’s oldest communities, the historical roots of San Luis Obispo run deep,
anchored by the enduring presence of Indigenous Peoples dating back at least 15,000 years
ago in the Diablo Canyon region. These first peoples hunted and shore-picked shellfish. The
Yak titʸu titʸu Yak tiłhini Northern Chumash Tribe, who have called the region home for over
10,000 years, have been integral in the historical development of the City. By 1504, coastal
land exploration took place by Spanish vessels, which carried members of the Filipino
community. Spanish invasion and colonization in 1769 led to the establishment of Missions
throughout California. The San Luis Obispo de Tolosa Mission was founded in 1772, the fifth
mission in the California chain of 21 missions, around which the City of San Luis Obispo
developed. It was first incorporated in 1856 as a General Law City and became a Charter City
in 1876. As a Charter City, San Luis Obispo has more local authority than cities that
incorporate under the general laws of the State of California. The Charter is the City’s
governing document, and any changes must be approved by the voters. The City’s Charter has
been amended several times since its adoption, most recently in August 2011.
Form of Government
As set forth in the City Charter, the City operates under the “Council-Mayor-City Manager”
form of government. The City Council has the authority to make and enforce all laws and
regulations with respect to municipal affairs, subject only to the limitations of the City Charter
and the State Constitution. There are four Council members, who are elected at-large and
serve overlapping, four-year terms. The Mayor is also elected at-large for a two-year term and
serves as an equal member of the Council. The City Council appoints the City Manager and
City Attorney. All other department heads are appointed by the City Manager.
City Services
The City provides a wide range of municipal services, including police and fire protection,
water and sewer utilities, street and parks maintenance, public transportation, parking, parks
and recreation, planning, building and safety, and other general government services.
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TRANSMITTAL MEMORANDUM
Financial data for all funds through which services are provided by the City have been
included in this report.
Several municipal services are provided through other governmental agencies or private utility
companies, including:
Service Agency
Health and Social Services County of San Luis Obispo
Courts State of California
Elementary and Secondary Schools San Luis Coastal Unified School District
Community College San Luis Obispo County Community College
District
Solid Waste Collection and Disposal San Luis Garbage Company
Gas, Electric and Telephone Private Utility Companies
The City is also a member of a Joint Powers Authority called Central Coast Community
Energy (3CE) which sources clean and renewable electricity at competitive prices for the
community and is delivered through the grid by PG&E. 3CE follows a Community Choice
Aggregator or “CCA” model, which is a community-focused, “not-for-profit” model that
allows for greater commitment to clean and renewable energy while supporting community
reinvestment for affordable and fair rates and equitable access to clean-energy resources. It is
locally controlled and governed by board members who represent the communities served by
3CE. Becoming a member of 3CE was an integral part of the City’s fiscal year 2019-20 Major
City Goal for Climate Action. For more information visit: www.3cenergy.org
Budgetary Policy and Control
Though the City adopts a two-year Financial Plan, annual budgets are legally appropriated by
the City Council by resolution and are prepared for each fund in accordance with its basis of
accounting. As provided under the City Charter, the City Manager is responsible for preparing
the budget and for its implementation after adoption. Financial reports are presented to the
City Council and posted online on a quarterly basis. At mid-year, staff prepares a more in-
depth status report for the City Council for the first six months of the fiscal year in addition to
any fund balance information and long-term forecast based on the audited annual
comprehensive financial report.
Since the City uses a two-year Financial Plan, operating appropriations not expended during
the first year may be carried forward into the second year for specific purposes with the
approval of the City Manager. When applicable, these amounts are shown as assigned for
subsequent year expenditures in the financial statements. At the end of the second year of the
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TRANSMITTAL MEMORANDUM
two-year plan, operating appropriations lapse unless they are committed by contract or
purchase order. Multi-year budgets are adopted for capital projects as necessary but revert to
fund balance after three years of non-activity.
The City Council has the legal authority to amend the budget at any time during the fiscal
year. The City Manager has the authority to make administrative adjustments to the
appropriated budget if those changes will have neither a significant policy impact nor affect
budgeted year-end fund balances. Legal budgetary control, meaning the level at which
management cannot overspend the budget without the City Council’s approval, is at the Fund
level. The City's budgetary policies are more fully described in Note 1 of the financial
statements.
Expenditure and budgeting details are maintained by the City for each fund and department
by program area at the line-item level. Budgetary control is exercised through a computerized
Enterprise Resource Planning (ERP) system, which interfaces with the City's general ledger.
The system maintains an ongoing record of budget balances and any authorized adjustments
throughout the year based on actual expenditures and purchase order obligations. Open
purchase orders at year-end are reported as assigned fund balance. The ERP system also
maintains the City’s list of fixed assets.
It is the City's policy to maintain an operating reserve in the General Fund of at least 20% of
operating expenditures which is reflected in the committed fund balance. This policy objective
was temporarily reduced when the City Council authorized up to $9 million of the operating
reserve be spent on the significant winter storms discussed further below. The City maintains
a similar policy for working capital balances in the water, sewer, and parking enterprise funds.
The Fleet Replacement Fund reserve policy is $500,000 and the Information Technology (IT)
Replacement Fund reserve policy is $400,000 which have also been met for the year. With
the 2021-22 fiscal year, the City also adopted a capital reserve in its Capital Outlay Fund of
20% of budgeted capital investments from the Local Revenue Measure for the fiscal year.
This reserve is adjusted with each budget adoption, funded from the local transactions tax,
and is reflected in the Capital Outlay Fund.
FACTORS AFFECTING FINANCIAL CONDITION AND MAJOR INITIATIVES
The information presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment within which the City
operated in 2023-24.
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TRANSMITTAL MEMORANDUM
Building on Current Efforts to Move into the Future
The City Council adopted its two-year Financial Plan for 2023-25 when wrestling with new
uncertainty related to unprecedented inflationary pressures, while also working to factor
unanticipated costs related to the January and March 2023 storms. The Financial Plan delivers
investments in the Council-adopted strategic initiatives and 74 established service programs
while, as of adoption, maintaining a balanced budget over the five‐year forecast period.
The four Major City Goals guide continuation of workplans initiated over the last several
years. Years ago, Major City Goals were focused on specific programs and projects, but the
consistency of higher-level Major City Goals in recent years has supported a long-term focus
on initiatives that bring about sustained systemic change. As such, the Major City Goals drive
the City’s strategic direction while maintaining the established core services the community
expects and is accustomed to. For additional information on the City’s strategic initiatives go
to 2023-25 Financial Plan.
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.
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.
Diversity, Equity, 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.
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TRANSMITTAL MEMORANDUM
Climate Action, Open Space, and 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.
Significant Storms in January and March 2023
In January and March 2023, the City and region experienced severe winter storms that resulted
in two separate emergency declarations at the Federal and State level, as well as emergency
proclamations at the local level. The City qualified for and is seeking reimbursement from
Federal and State resources for eligible costs related to the storms. The City has expended
approximately $12.9 million on storm response as of the end of the fiscal year, including
debris removal, emergency protective measures, and projects to make permanent repairs to
facilities. It will take years to fully recover and repair all damages, which is now currently
estimated to exceed $48.4 million. The Federal Emergency Management Agency (FEMA)
reimbursement process continues to move slowly. In addition, 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. This lack
of funding is not expected to put the City’s projects in danger, but it may cause delay in
projects becoming obligated for funding, which may impact the timing of reimbursement.
This timing is being closely tracked by City staff as it impacts the City’s ability to restore the
operating reserve and fund future storm-related projects.
The City’s strong fiscal policies and General Fund reserve provided the first line of defense
in addressing the immediate impact of the storms to the community. The City drew down
reserves as the City Council authorized the use of up to $9 million from the operating reserve
to pay for these unanticipated emergency costs and activated the City’s Fiscal Health
Contingency Plan during the second half of fiscal year 2022-23.
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TRANSMITTAL MEMORANDUM
Overall Financial Condition
In addition to the impact of the winter storms, several factors played into the City’s financial
condition at 2023-24 year-end:
1. Strong tax revenue, including Sales and Use Tax, Property Tax, Transient Occupancy
Tax (TOT), as well as Utility User Tax. The 2020 voter approved local transaction tax
continues to be the City’s largest single tax revenue. Property taxes remained strong
due to ownership transfers as well as new housing units on the market, particularly in
the San Luis Ranch and Avila Ranch developments. The prior year saw record high
TOT, which was less in the current fiscal year due to another wet winter and lower
occupancy rates, but still surpassed budget estimates by 3%. Utility User Tax was on
target with budget assumptions and remained a strong performer.
2. Expenditure Savings. Unspent budgets were primarily driven by staffing vacancies.
Non-staffing savings were seen across most departments and in many instances reflect
projects that were not completed by fiscal year end and will be funded in the following
year. These results are in line with historical trends and are driven in part by disciplined
financial management.
3. Favorable Interest Earnings Fair Value Adjustment. The Fair Value (FV)
adjustment is essentially an accounting practice that reassesses the value of the City’s
investments when there is a difference between the fair market value and the value
recorded on the City’s books. Interest earnings and FV adjustments have been volatile
the past few years and higher investment income driven largely by market interest
rates is not expected to persist.
Economic Indicators for San Luis Obispo in General
Local Economic Environment
Historically, the City has experienced a relatively stable economy, largely insulated from
economic downturns in other parts of the State or the nation due to major State and federal
employers such as the California Polytechnic State University (Cal Poly), California Men’s
Colony, California Department of Transportation (Cal Trans) District 5 offices, the Regional
Water Control Board, and Camp San Luis Army base. It is also the County seat with
significant county administrative offices and the regional courts. The continued operation of
the Diablo Canyon Nuclear Powerplant also contributes to a stable economy as it generates
approximately 10% of the State’s electricity.
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TRANSMITTAL MEMORANDUM
Employment. Due to the local economic environment and a large government presence and
diversity, employment in the San Luis Obispo County region has historically been relatively
stable. As noted above, the State has a major university, correctional facility, and other
regional offices located in the community. The County government and school districts are
also major employers. Other major employers include two major hospital facilities, several
engineering and software companies, and Pacific Gas and Electric. The announcement to
prolong the use of the Diablo Canyon Nuclear Power Plan presents an opportunity to continue
jobs for trained professionals in the region.
Key Revenue Sources. As the commercial, governmental, and cultural hub of San Luis
Obispo County, the City is fortunate to attract a diverse array of strong revenue sources. The
top three revenue sources for the City are Sales & Use Tax, Property Tax, and Transient
Occupancy Tax (TOT). The 2020 voter approved local transaction tax of one-and-a-half cent
(Local Revenue Measure) went into effect in April 2021 to provide for a variety of City
services including infrastructure. This Local Revenue Measure has become the largest single
tax revenue source to the City, growing to over $30 million per year.
Long-Term Financial Planning.
The City engages in several activities focused on long-term financial planning to gauge and
adjust to current economic conditions and trends. Various scenarios are developed considering
a multitude of information and resources. This effort was very rigorous in fiscal year 2023-24
due to the uncertainties surrounding the economic environment, increasing demand for City
services and ongoing storm related project costs.
Long-Term Fiscal Forecast. Before the two-year Financial Plan and budget process begins,
the City Council reviews long-term fiscal forecasts for the General and the Enterprise Funds
to help set the stage for sustainable decision-making. The purpose of the forecast is to consider
long-term fiscal health and to identify the funds’ ability, on an order of magnitude basis, to
maintain current services and existing assets and look at the opportunity to fund new
initiatives. As reported to the City Council, the General Fund forecast indicates a modest
budget deficit in 2026-27 that, if not addressed, is expected to grow to $2 million by 2028-29.
The forecasted deficit is largely driven by the City’s obligation to bring a fifth fire station
online by July 2026 to satisfy conditions of the Avila Ranch Development Agreement, as well
as continued increases to required CalPERS payments.
CalPERS and the City’s Unfunded Liability
In 2018-19, the City developed a three-year Fiscal Health Response plan and prepared a path
to pay-down the City’s pension liability over a 20-year term, shortening the duration of
prescribed payments and saving approximately $19 million in payments due. It did so by
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TRANSMITTAL MEMORANDUM
aligning its expenditures with the revenue forecast to allow for additional annual payments.
A first payment of $4.2 million was made in April 2019 and a second payment of equal amount
was scheduled for April 2020. Due to the state of the COVID-19 health emergency, the City
Council decided to retain any unassigned fund balance until the fiscal situation could be better
assessed. It did so again in February 2021 when the next payment of $3 million was scheduled
and uncertainties with pandemic driven restrictions continued. Given the City’s commitment
to the additional payments and the year-end results, the previously earmarked amounts for
Fiscal Years 2019-20 through 2021-22 was in April 2022, making good on $10.2 million in
additional funding toward the City’s pension liability. An additional $2.2 million was paid
through the City’s four enterprise funds as well as the Whale Rock Reservoir custodial fund
and Tourism Business Improvement District Fund.
In July 2021, CalPERS announced having ended the 2020-21 Fiscal Year with a 21.3%
investment gain. This result triggered its previously adopted Risk Mitigation policy, lowering
the future discount rate to 6.8%. The CalPERS board ratified the discount rate in November
2021, and it became effective for the City with the 2023-24 fiscal year. Given this new reality,
further influenced by a 6.1% investment loss at June 30, 2022, and a lackluster 5.8%
investment return for fiscal year 2022-23, the City continues to gauge the appropriate level of
additional payments moving forward.
FINANCIAL CONDITION OVERVIEW
Despite the background of economic uncertainty and historically high mortgage interest rates,
the City ended the 2023-24 fiscal year in a better fiscal position than originally anticipated.
General Fund revenues exceeded budgetary estimates by approximately 5% and expenditures
were 11% under budget. On June 30, 2024, the total General Fund balance was $45.3 million;
an increase of $2.8 million over 2023-24 despite the ongoing storm related costs. Enterprise
Funds similarly experienced increases in net position. Overall, the City’s total net position
increased by $45.9 million from the prior year.
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The table below shows the General Fund levels of fund balance in accordance with GASB 54
and the City’s policy pertaining to fund balance assignments. Fund Balance & Reserve Policy
General Fund – Fund Balance per June 30, 2024
Non-spendable $23,481
Committed
Contingency Fund 10,826,500
General government programs 1,776,826
Risk Management 585,456
Assigned to:
Encumbrances & Commitments 6,009,831
SLO Rep Theater grant 3,940,000
115 Trust Fund 2,000,000
CalPERS Payment 2,000,000
Revenue Stabilization 2,000,000
Storm Related Expenses 5,125,068
Tenant Improvement 1,400,000
Development Services 214,136
Solid Waste AB939 237,147
Unassigned 9,167,831
Total Fund Balance $45,329,766
Continue to Focus on Sustainability and Long-term Fiscal Health
With its Major City Goal for Economic Recovery, Resiliency & Fiscal Sustainability, the City
continues its commitment to long-term fiscal health. The goal program aims to, in
collaboration with local partners, continue to assist with economic recovery for all from the
pandemic and sustain a thriving local economy by supporting local businesses, arts and
culture, and downtown vitality. It commits to practicing fiscal responsibility, paying down
unfunded pension liabilities, and investing in critical infrastructure.
Revenue Base Growth. Since the Great Recession, the US had experienced an unprecedented
long-term expansion that continued into the latter part of 2019-20. In FY 2019-20, sales tax
(including the local Transaction tax), Property Tax and Transient Occupancy Tax (TOT) had
accounted for 69% of all funding sources in the General Fund. All of these revenues showed
slow but steady growth with Property Tax seeing the largest increase. However, all of this
came to an abrupt halt with the onset of COVID-19 and the resulting global pandemic that
placed the national and local economy on temporary halt.
Action by Congress and substantial aid packages ranging from additional unemployment
benefits, one-time payments to households, and protection from rent and utility payments,
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TRANSMITTAL MEMORANDUM
lead to an accumulation of wealth that resulted in continued purchasing power and
consumption. The beginning trends of the migration to online shopping were accelerated and
sales tax revenue did not see the originally anticipated decline. Property tax remained strong
as the real estate market continued to deliver. Tourism did clearly take a hit but continued to
see activity and bounced back due to pent-up demand in the last quarter into the summer
months. Development related fee revenue continued to see significant growth as development
activity remained at unprecedented levels in the City, with two Community Facilities Districts
(CFDs) beginning construction and housing continuing as a Major City Goal.
In the post-pandemic economy, the City continues to see growth, despite historically high
inflation and mortgage rates. As housing developed within the CFDs and other development
projects around the City continue to move forward, property taxes and sales taxes continue to
remain strong revenue performers.
Containment of Operating Costs. The City’s efforts to control costs are ongoing while also
addressing the need to remain an attractive employer and provide the services the community
expects. The City has an extensive policy framework that allows immediate and nimble action
to address adverse changes in economic and fiscal condition and will continue to activate as
needed. The City’s implementation of a 2nd and 3rd tier retirement benefit program continues
to change the City’s annual retirement contributions as 67% of the workforce is now enrolled
in those retirement plan tiers. These actions have been instrumental in helping the City contain
current costs and long-term liabilities related to retirement benefit programs; furthermore, two
of the City’s bargaining units as well as the Management & Confidential group pay additional
contributions toward the City’s pension obligation.
Infrastructure and Facilities Maintenance. As a growing city, San Luis Obispo has seen
capital expenditures grow steadily over the past decade. The need to maintain, repair or
replace its current infrastructure is met with the need to build amenities for the community at
large and the City’s Local Revenue Measure plays a vital part. The City has used
approximately 75% of the revenue in any given year for infrastructure improvements and
enhancements and the Public Works department is continuing work to determine how best to
deliver projects that have increased in number, scope and complexity. For a list of projects
delivered in fiscal year 2023-24 see page 53 in the Management Discussion and Analysis.
The City’s Capital Improvement Plan Review Committee evaluates projects for funding based
on established criteria and funding is allocated to projects in coordination with a number of
adopted plans including the General Plan, Active Transportation Plan, Downtown Concept
Plan, and Parks and Recreation Blueprint. Each plan represents hours of community input and
a vision to maintain and improve San Luis Obispo now and into the future.
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Ongoing Commitment to Local Transaction Tax Measure Priorities (Local Revenue
Measure)
The City remains committed to the priorities for the use of the local transaction tax measure
as identified by the community. They include public safety, youth and senior services, code
enforcement, economic development, neighborhood street paving, open space preservation,
traffic congestion relief and flood protection. The following table summarizes how the local
transaction tax measure funds were used during fiscal year 2023-24.
Total uses of the funding during 2023-24 amounted to $34.1 million, with an additional $3.9
million encumbered through purchase orders or contracts; the remaining balances of these
resources are designated for future year expenditures. A more detailed schedule of local
transaction tax measure sources and uses is provided in the Other Supplementary Information
section of this report beginning on page 149.
Local Sales Tax Measure Revenue & Uses Summary
2023-24
Revenues:
Sales and use tax - Measure G add-on tax $ 30,596,293
Total Revenues $ 30,596,293
Uses:
Operating Programs ($6,990,046)
Capital Projects (27,137,408)
Total Uses ($34,127,454)
Change in Fund Balance ($3,531,160)
Prior Sales Tax Measure Balance $5,307,988
Net available for future year appropriations $ 1,776,828
RELEVANT FINANCIAL POLICIES
The City of San Luis Obispo has adopted a comprehensive set of budget and financial policies
to provide guidance for all fiscal matters and resource allocations. The policies are reviewed,
amended, and updated with each Financial Plan adoption and as needed throughout the year.
The policies cover virtually every aspect of financial management but several of these policies
are particularly relevant to the understanding of the City’s financial performance in 2023-24.
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Debt Administration Policies
The City’s Capital Financing and Debt Management policies contain general guidelines for
refinancing of outstanding debt. These guidelines call for periodic review of all outstanding
debt to determine refinancing opportunities, particularly to create economic benefit such as
lower debt service payment or reduction of principal. The City always evaluates various
options when considering the issuance of debt in order to benefit from the best long-term
terms and conditions.
Information on the City’s outstanding debt issues and other long-term liabilities is provided
in Note 7 in the notes to the financial statements.
In February 2024 Fitch Ratings, a nationally recognized statistical rating organization,
reviewed the City’s financials, its fiscal outlook, and the current rating. On February 20, 2024,
Fitch Ratings subsequently concluded that there should be no change to the existing rating at
AA+ with a stable rating outlook. Fitch Ratings’ long term credit ratings are assigned on an
alphabetic scale from AAA to D. The City’s AA+ bond rating means that the City’s
investment grade is “quality.” Specifically, current lease revenue bonds (LRBs) issued by the
San Luis Obispo Public Financing Authority remain at an 'AA’ rating and the LRBs issued by
the City of San Luis Obispo Capital Improvement Board at an 'AA' rating. In addition, in April
2023, Standard & Poor’s Global Ratings upgraded the City’s Water Revenue bonds from ‘AA-
’ to ‘AA.’ At this time, the City of San Luis Obispo has no general obligation debt.
Fitch Ratings’ analysts had previously commended the City’s ability to respond to the
economic impacts of the COVID-19 pandemic, “budget management at times of recovery is
very strong, leaving the city well prepared to manage the current period of economic stress.
The city engages in thorough and conservative long-term financial planning with a focus on
maintaining structural budget balance, maintaining the city's capital assets with minimal debt
reliance, and proactive efforts to pay down its unfunded retirement liabilities above actuarially
determined levels.”
Budgetary Policies
The City of San Luis Obispo has a policy that requires the adoption of a balanced budget over
the two-year period of the Financial Plan. This means that operating revenues must fully cover
operating expenditures, including debt service. Additionally, ending fund balance (or working
capital in the enterprise funds) must meet minimum policy reserve levels. Under this policy it
is allowable for total expenditures to exceed revenues in any given year but only when fund
balance is used to pay for capital improvement plan projects or other “one-time,” non-
recurring expenditures.
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Fund Balance and Reserve Policies
The City’s policies recognize the importance of long-range planning in managing the City’s
fiscal affairs in order to provide for stable operations, promote more orderly spending patterns,
and assure the City’s long-term fiscal health. The reserves contained in the General Fund and
Enterprise Funds play a pivotal role in this strategy. The reserve policies call for a minimum
fund balance of at least 20% of operating expenditures in the General Fund and a working
capital level of 20% of operating expenses in the Water, Sewer, and Parking Enterprise Funds.
The policies also require the Fleet Management and Information Technology (IT)
Replacement Funds to provide for the timely replacement of vehicles and equipment as well
as IT equipment and software and a reserve is retained in these funds to safeguard against
unforeseen and unfunded issues. All reserve policies continue to be met, considering the
policy direction the Council provided to use up to $9 million of General Fund reserves for
storm damage repair while awaiting any FEMA reimbursements.
To further strengthen the Water and Sewer fund against revenue fluctuations, both funds carry
a Rate Stabilization reserve of 10% of sales revenue for Water and 5% of sales revenue for
Sewer.
Long-Term Liabilities and Maintenance of Infrastructure
With the 2017-19 Financial Plan, the City began to incorporate into the City’s fiscal policies
the use of one-time funds above policy reserve to unfunded pension liabilities and
infrastructure. Additionally, the City began addressing the long-term needs of its capital assets
and categorizing asset maintenance, asset replacement, and new assets driven by new
development. The City Council received a first presentation of the long-term needs of its
infrastructure in early 2018 and the assessment continued into FY 2019-20, culminating in the
City Council’s decision to place a measure on the November 2020 ballot for a 1.5 cent local
transaction tax measure to supplant and add to the 2006 enacted half-cent measure. The
measure was successfully approved by 58% of the voters and the new local transaction tax
went into effect on April 1, 2021.
This Local Revenue Measure has now become the City’s largest tax revenue source, and the
City remains committed to the majority of the funds being used to maintain, replace, and
renew its growing infrastructure needs.
Pension and Other Post-Employment Benefits
The City contributes to the California Public Employees’ Retirement System (CalPERS), an
agent multiple-employer public employee defined benefit pension plan. CalPERS provides
retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan
members and beneficiaries. CalPERS acts as a common investment and administrative agent
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TRANSMITTAL MEMORANDUM
for participating public entities within the State of California. Benefit provision and all other
requirements are established by State statute and City ordinance. The amount of the City’s
required annual contribution is determined actuarially and is reported to the City via the
Annual Valuation Reports provided by CalPERS for each retirement plan.
It is the policy of the City to fully fund the annual contribution to ensure that the plan will
fully meet its obligation to retired employees on a timely basis. Prepaying the City’s unfunded
liability will also reduce overall annual cost depending on whether approved actuarial
assumptions are realized and are not adjusted by the CalPERS Board.
As part of its cost reduction strategy, the City has implemented 2nd Tier and the state mandated
3rd Tier retirement benefit programs for new hires while also requiring all employees to pay
at least the full amount of the member share of the annual retirement contribution. Beginning
in 2018-19, and increasing in 2019-20, the City negotiated further cost sharing with employee
groups to pay into CalPERS which will help lessen pension impacts to the City’s budget. The
City continues to monitor legal developments and legislation that could positively or
negatively impact the City’s finances and plans to counteract any adverse investment results
with additional payments to CalPERS.
The City has also established a Section 115 Trust fund with the California Employer’s Pension
Prefunding Trust (CEPPT) and had planned to make its first contribution of $2.4 million using
unassigned fund balance at the end of FY 2022-23. Instead, the unassigned fund balance was
allocated to infrastructure projects which had increased in cost due to inflationary factors.
All employees currently pay the full employee contribution. Total contribution rates as a
percent of salary, including any additional percentages agreed upon are listed in the table
below:
Police (Sworn) Employee Contribution Levels to PERS Retirement
(Percent of Salary)
Safety PERS Tier Jul-23
Tier 1 (3% @ 50) 15%
Tier 2 (2% @ 50) 15%
Tier 3 (2.7% @ 57) 17.5%
Police (Non-Sworn) Employee Contribution Levels to PERS Retirement
Miscellaneous PERS Tier Jul-23
Tier 1 (2.7% @ 55) 14%
Tier 2 (2% @ 60) 13%
Tier 3 (2% @ 62) 10%
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TRANSMITTAL MEMORANDUM
Fire (Sworn) Employee Contribution Levels to PERS Retirement
Safety PERS Tier Jul-23
Tier 1 (3% @ 50) 12%
Tier 2 (2% @ 50) 12%
Tier 3 (2.7% @ 57) 17.5%
Appointed officials, department heads, unrepresented management,
unrepresented confidential and non-sworn fire employees
Miscellaneous PERS Tier Jul-23
Tier 1 (2.7% @ 55) 11%
Tier 2 (2% @ 60) 10%
Tier 3 (2% @ 62) 10%
Other Post-Employment Benefits (OPEB). The City’s primary OPEB cost obligation is for
retiree health benefits under its election to participate in the CalPERS Health Benefit Program
under the “unequal contribution option.”
When the City joined the CalPERS health plan in 1993, it immediately experienced an
increase in the plan choices available along with a significant reduction in rates. Due to
CalPERS purchasing power, the City continues to experience competitive health care rates.
However, as a condition of joining the CalPERS health program, the City agreed to contribute
the minimum monthly amount required by law towards retiree health care coverage for both
active and retired employees. This allows retired employees to purchase health insurance at
the same rate offered to active employees.
Additionally, the City had established certain post-retirement health care benefits available to
executive management employees appointed prior to August 2000. There is only one
employee remaining who receives one-half of the retiree health insurance premiums paid by
the City through the City's group health plan. This provision ceases upon the death of the
retired employee or upon the retired employee reaching age 65. These OPEB benefits were
financed on a pay-as-you-go basis in the past. As directed by Council in May 2008, the City
began fully pre-funding the OPEB obligation via an irrevocable trust in 2008-09.
Additional information on the City’s retirement and post-employment benefits can be found
in Note 8 in the notes to the financial statements.
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GASB Pronouncements for FY 2023-24
GASB Statement No. 100, Accounting Changes and Error Corrections-an Amendment
of GASB Statement No. 62 – The primary objective of this Statement is to enhance
accounting and financial reporting requirements for accounting changes and error corrections
to provide more understandable, reliable, relevant, consistent, and comparable information for
making decisions or assessing accountability. The City has implemented this statement in
current fiscal year.
GASB Statement No. 101, Compensated Absences – The primary objective of this
Statement is to better meet the information needs of financial statement users by updating the
recognition and measurement guidance for compensated absences. That objective is achieved
by aligning the recognition and measurement guidance under a unified model and by
amending certain previously required disclosures. The City has implemented this statement in
the current fiscal year.
GASB Implementation Guide No. 2023-1, Implementation Guidance Update – 2023. The
City has applied this guidance in the current fiscal year.
AWARD FOR EXCELLENCE IN FINANCIAL REPORTING
Government Finance Officers Association of the United States and Canada (GFOA) awarded
a Certificate of Achievement for Excellence in Financial Reporting to the City of San Luis
Obispo for its annual comprehensive financial report for the fiscal year ended June 30, 2023.
The Award Program
The Certificate of Achievement is a prestigious national award recognizing conformance with
the highest standards for preparation of State and local government financial reports.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily
readable and efficiently organized annual comprehensive financial report whose contents
conform to program standards. This report must satisfy both U.S. generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City has received a
Certificate of Achievement each year since 1984. Staff believe that the City’s current ACFR
continues to conform to the Certificate of Achievement program requirements and will submit
it to GFOA to determine its eligibility for another certificate.
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TRANSMITTAL MEMORANDUM
Value of Program Participation. There are benefits to participating in these programs beyond
simply receiving recognition for the City’s efforts. For example, by striving to meet program
standards and goals, the City produces better reports. Additionally, as part of the review
process, comments for improvement from other municipal finance professionals who review
the reports from a “fresh” perspective are received. Staff believes that this results in
continuous improvements in reporting the City’s financial results to elected officials, staff,
and other interested parties such as bondholders, credit agencies, and the public at-large.
ACKNOWLEDGMENTS
The preparation and development of this report would not have been possible without the
year-round dedication of the Finance Department staff and their special efforts, working in
conjunction with the City's independent auditors, to produce this document.
We would like to take this opportunity to compliment all those staff members within each
City department as well as our independent auditors who were associated with the preparation
of this report. We would also like to thank the City Council for the continued support and
dedication in planning and conducting the financial operations of the City in a fiscally
responsible and progressive manner.
Whitney McDonald, City Manager
Emily Jackson, Finance Director
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DIRECTORY OF OFFICIALS AND ADVISORY BODIES
CITY COUNCIL
Erica A. Stewart Mayor
Michelle Shoresman Vice Mayor
Mike Boswell Council Member
Emily Francis Council Member
Jan Marx Council Member
ADVISORY BODIES
Active Transportation Committee
Administrative Review Board
Architectural Review Commission
Construction Board of Appeals
Council Compensation Committee
Cultural Heritage Committee
Housing Authority
Human Relations Commission
Investment Oversight Committee
Mass Transportation Committee
Parks and Recreation Commission
Personnel Board
Planning Commission
Promotional Coordinating Committee
Revenue Enhancement Oversight Commission
Tourism Business Improvement District Board
Tree Committee
APPOINTED OFFICIALS AND DEPARTMENT HEADS
Appointed Officials
Whitney McDonald City Manager
J. Christine Dietrick City Attorney
Department Heads
Scott Collins Assistant City Manager
Greg Hermann Deputy City Manager
Timmi Tway Director of Community Development
Emily Jackson Director of Finance
Todd Tuggle Fire Chief
Nickole Domini Director of Human Resources
Richard Scott Police Chief
Aaron Floyd Director of Utilities
Greg Avakian Director of Parks & Recreation
Matt Horn Director of Public Works
21
MISSION STATEMENT
SAN LUIS OBISPO STYLE
Quality with Vision WHO ARE WE?
People Serving People
A team that puts high value on each citizen it serves.
Providers of programs that meet basic service needs of each citizen.
Enhancers of the quality of life for the community as a whole.
WHAT DO WE STAND FOR?
Quality in all Endeavors – Pride in Results
Service to the community – the best – at all times.
Respect – for each other and for those we serve.
Value – ensuring delivery of service with value for cost.
Community involvement – the opportunity to participate in attaining the goals of the City.
WHERE ARE WE GOING?
Into the Future with a Design
Planning and managing for levels of service consistent with the needs of the citizens.
Offering skills development and organizational direction for employees in order to improve the delivery of
municipal services.
Developing sources of funding and establishing a sound financial management program which will result in
fiscal independence and flexibility in the delivery of City services.
Providing the residents of the City with accurate and timely information on issues which affect them, and
encouraging the full utilization of City services.
Promoting the City as a regional trade, recreational and tourist center and improving the quality of life for
residents and visitor.
22
ORGANIZATIONAL VALUES
We, as an organization, embrace opportunities to improve our services and the quality and effectiveness of our
relationships with the community and our teams. The following values guide and inspire our efforts.
Shared Vision, Mission and Goals
We have a sense of common purpose and direction pursued with passion and translated into concrete actions.
Service
We are dedicated to the best use of resources to fulfill identified community goals and needs.
Leadership and Support
We recognize that the ability to lead can be found at all levels and that to create an environment to succeed requires
leading by example.
Communication
We foster open and clear discussion that encourages the willingness to speak up and to listen, within a framework of
respect and understanding.
Team Players
We encourage effective working relationships within and between departments and the public to address issues and
achieve valuable results.
Honesty, Respect and Trust
We honor commitments, acknowledge legitimate differences of opinion and accept decisions reached with integrity.
Initiative and Accountability
We take personal responsibility to do what needs to be done and report the results in a straightforward manner.
Innovation and Flexibility
We are open to change and willing to try new ways to fulfill the organization’s vision, mission, and goals more
effectively.
23
Employee Development and Recognition
We encourage and support each employee to improve relevant job skills and celebrate personal and team
accomplishments.
Stewardship and Ethics
We promote public trust by using City resources wisely, and through consistent fulfillment of these values.
24
Patrol Fire, Medical & Haz Mat Natural Resources Recruitment Assistant City Manager
Traffic Safety Emergency Response Economic Development Labor Relations
Investigations Hazard Prevention Cultural Activities Fair Employment
Neighborhood Services Fire Inspections City Clerk Services Risk Management
Animal Regulation Disaster Planning General Administration Human Relations
Information Technology
GIS Management
Budget Recreation Programs Water Engineering Long Range Planning
Purchasing Ranger Services Sewer Transportation Development Review
Accounting & Revenue Park Planning Utilities Resource Creek & Flood Protection Building & Safety
Support Services Golf Course Conservation Maintenance Services:CDBG Administration
Finance Administration Public Art Whale Rock Reservoir Streets, Parks, Bldgs Housing
RESIDENTS
ADVISORY
BODIES
CITY
MANAGER
MAYOR &
CITY COUNCIL
DeptAppointed by the City Council Appointed by the City Manager
CITY
ATTORNEY
Police Fire
Finance Community
Development
Administration
Dept Reporting to the Assistant City Manager
Utilities
Human
Resources
Parks &
Recreation
Public
Works
Community Services
25
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of San Luis Obispo
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
26
FINANCIAL SECTION
27
28
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of San Luis Obispo
San Luis Obispo, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of the City of San Luis
Obispo, California (City) as of and for the year ended June 30, 2024, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements as listed in the
table of contents.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective
changes in financial position and, where applicable, cash flows thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are required to be independent of the City and to meet our other
ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
To the Honorable Mayor and Members of the City Council
of the City of San Luis Obispo
San Luis Obispo, California
Page 2
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently
known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a
material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control. Misstatements are considered
material if there is a substantial likelihood that, individually or in the aggregate, they would influence
the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is
expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control–
related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, budgetary comparison information, pension plan and OPEB
plan information on pages 33-57 and 135-145 be presented to supplement the basic financial statements.
30
To the Honorable Mayor and Members of the City Council
of the City of San Luis Obispo
San Luis Obispo, California
Page 3
Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements. The local sales tax measure funding schedule,
combining and individual nonmajor fund financial statements and budgetary comparison schedules,
are presented for purposes of additional analysis and are not a required part of the basic financial
statements.
The local sales tax measure funding schedule, the combining and individual nonmajor fund financial
statements and budgetary comparison schedules on pages 149-193 are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the local sales tax measure funding schedule, the combining
and individual nonmajor fund financial statements and budgetary comparison schedules are fairly
stated in all material respects in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual comprehensive financial
report. The other information comprises the introductory and statistical sections but does not include
the basic financial statements and our auditor's report thereon. Our opinions on the basic financial
statements do not cover the other information, and we do not express an opinion or any form of
assurance thereon. In connection with our audit of the basic financial statements, our responsibility is
to read the other information and consider whether a material inconsistency exists between the other
information and the basic financial statements, or the other information otherwise appears to be
materially misstated. If, based on the work performed, we conclude that an uncorrected material
misstatement of the other information exists, we are required to describe it in our report.
31
To the Honorable Mayor and Members of the City Council
of the City of San Luis Obispo
San Luis Obispo, California
Page 4
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 24,
2024, on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the City’s internal control
over financial reporting and compliance.
Badawi & Associates, CPAs
Berkeley, California
December 24, 2024
32
Management’s Discussion and Analysis
Overview of the Financial Statements
The discussion and incorporated analysis in this document are intended to serve as an introduction
to the City’s basic financial statements, which include the following components: (1) government-
wide financial statements, (2) fund financial statements and (3) notes to financial statements. This
report also contains required supplementary information (RSI) as well as other supplemental
financial information.
Government-wide Financial Statements. This set of statements is designed to provide readers
with a broad overview of the City’s finances, in a manner similar to private-sector business
reporting.
The Statement of Net Position presents financial information on all the City’s assets/deferred
outflows of sources and liabilities/deferred inflows of sources, with the difference reported as net
position. In the private sector, it is similar to a balance sheet.
Over time, increases or decreases in net financial position may serve as a useful indicator of
whether the financial position of the City is improving or declining. In conformance with GASB
68, the Statement of Net Position reported for fiscal year 2023-24 considers the City’s long-term
pension liabilities, effectively decreasing the City’s net financial position.
The Statement of Activities presents changes in the government’s net position during the most
recent fiscal year. All changes in net position are reported during the period when the underlying
events giving rise to the change occur, regardless of the timing of the related cash flow. Thus,
revenues and expenses are reported in this statement for some items that will only result in cash
flows in future fiscal periods such as revenue pertaining to uncollected taxes.
The City’s government-wide financial statements distinguish the functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
functions that are intended to recover all or a significant portion of their cost through user fees or
that are required by grantor agencies or City policies to be accounted for in this fashion (business-
type activities).
The governmental activities include: (1) public safety, (2) transportation, (3) leisure, cultural and
social services, (4) community development and (5) general government support services such as
legal services, elections, human resources, risk management, finance, and information technology.
33
Management’s Discussion and Analysis
The business-type activities of the City include: (1) water, (2) sewer, (3) parking operations and
the (4) transit program.
As required by U.S. Generally Accepted Accounting Principles (GAAP), these financial
statements present the City (the primary government) and its component units (entities for which
the government is considered to be financially accountable). Blended component units, although
legally separate entities, are in substance, part of the government's operations and data from these
units are combined with data of the primary government.
The San Luis Obispo Capital Improvement Board, the San Luis Obispo Public Financing Authority
and the San Luis Obispo Parking Authority are reported as blended component units in these
statements. All provide financing for the construction and acquisition of City facilities and consist
of members of the City Council. Activities of these units are accounted for in the applicable City
governmental funds. Separate financial statements are not prepared for the San Luis Obispo
Capital Improvement Board, San Luis Obispo Public Financing Authority, or San Luis Obispo
Parking Authority. The City has no component units that require discrete presentation in
accordance with Governmental Accounting Standards Board (GASB) standards.
Pension Obligation. Pursuant to GASB Statement No. 68 (GASB 68), Accounting and Financial
Reporting for Pensions, the City reports on the unfunded pension liability on the full accrual basis
of accounting in the government-wide financial statements. The reports also include disclosure
requirements and supplementary schedules as required by GASB 68. The measurement date for
fiscal year 2023-24 pension liabilities is as of the fiscal year ended June 30, 2023. This date reflects
a one-year lag, reflecting the time it takes for the pension system to prepare reports, which is
common for all member agencies, and was used so that these financial statements could be issued
in an expedient manner. Activity (i.e., contributions made by the City) occurring during fiscal year
2023-24 are reported as deferred outflows of resources in accordance with GASB Statement No.
71.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The City, like
other state and local governments, uses fund accounting to ensure and demonstrate compliance
with finance-related legal requirements. All of the funds of the City can be divided into three
categories: (1) governmental funds, (2) proprietary funds, and (3) fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike
the government-wide financial statements, governmental fund financial statements focus on near-
34
Management’s Discussion and Analysis
term inflows and outflows of spendable resources, as well as on balances of spendable resources
available at the end of the fiscal year. Such information reflects financial resources available in the
near future to finance the City’s programs.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the government’s near-term
financial decisions. Both the governmental funds balance sheet and the governmental funds
statement of revenues, expenditures and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The City maintains several individual governmental funds organized according to their purpose
(general, special revenue, debt services, and capital projects). Information is presented in the
governmental funds balance sheet and in the governmental funds statement of revenues,
expenditures, and changes in fund balances. The General Fund and Capital Outlay Fund are both
considered major funds1. Data from the non-major governmental funds are combined into one
aggregated presentation. Individual fund data for each of the non-major governmental funds is
provided in the form of combining statements in the supplementary information section in this
report.
Of the major funds, the City adopts an annual appropriated budget for the General Fund. A
budgetary comparison statement has been provided as required supplementary information to
demonstrate compliance with the budget. Budgetary information for non-major governmental
funds with annual budgets has been provided with the fund financial statements in the
supplementary information section in this report.
Proprietary Funds. Proprietary funds are generally used to account for services for which the City
charges customers; either outside customers or internal units/divisions of the City. Proprietary
funds provide the same type of information as shown in the government-wide financial statements,
only in more detail.
The only type of proprietary fund the City maintains is enterprise funds. The Water, Sewer,
Parking, and Transit Funds are presented as business-type activities in the government-wide
financial statements. The City considers all four of its enterprise funds to be major funds.
1 See Note 1 Summary of Significant Accounting Polices for a detailed explanation of fund types including major
funds.
35
Management’s Discussion and Analysis
Fiduciary Funds. Custodial funds are the only type of fiduciary funds maintained by the City.
These are used to account for resources held for the benefit of parties outside the primary
government. Fiduciary funds are not reflected in the government-wide financial statements
because the resources of those funds are not available to support the City’s own programs. An
example of a custodial fund may include donations provided to the City to be utilized for specific
purposes (i.e. open space, environmental mitigation funds, etc.) as well as other funds held in trust
of another entity to be utilized for a specific purpose. A specific example is the Hazardous
Materials Task Force Fund, created to provide special fire services around the County, which is
funded by multiple county and city agencies.
The accounting used for fiduciary funds is much like that used for proprietary funds. The Custodial
Funds are presented with the fund financial statements in the supplementary information section.
Notes to the Financial Statements. The notes provide additional information that is essential to
the reader for a full understanding of the data provided in the government-wide and fund financial
statements.
Other Information. In addition to the basic financial statements and accompanying notes, this
report also presents required supplementary information including budgetary comparison
schedules, reporting of the local transaction tax measure (Measure G and G-20) and more detailed
information concerning the City’s net pension liability, schedule of contributions to the pension
plan and progress in funding its obligation to provide other post-employment benefits (OPEB).
Statistical Information. The statistical section presents detailed information as a context for
understanding what the information in the financial statements, notes disclosures, and required
supplementary information indicates about the City’s overall financial health. This information
has been adjusted over time to also serve as required bond disclosure information.
Financial Highlights
The following information provides a narrative overview and analysis of the financial activities of
the City of San Luis Obispo (City) for the fiscal year that ended June 30, 2024. It should be read
in conjunction with the transmittal memorandum, the basic financial statements, and the
accompanying notes.
In the fiscal year 2023-24, the City continued to experience steady growth from post-pandemic
economic trends despite historically high inflation. Examples include the progress of ongoing
housing developments including Avila Ranch, San Luis Ranch, and Righetti Ranch projects which
36
Management’s Discussion and Analysis
all contributed to growth in the property tax base. Home prices also continued their upward trend
despite mortgage rates reaching 20+ year highs. In addition, general permit and inspection activity
remained strong through the fiscal year. Other signs of growth include increases in sales tax
revenue which came in slightly higher than the prior year. Overall, actual revenues received were
nearly $6 million higher than budgeted and the City’s expenditures came in approximately $11.2
million below appropriated budget amounts.
Winter Storm update In the middle of fiscal year 2022-23 the City experienced heavy winter
storms that resulted in two separate emergency declarations at the Federal and State levels, as well
as a local emergency proclamation. While the City is eligible for reimbursement for a majority of
the storm related costs through the Federal Emergency Management Agency (FEMA) and the
California Disaster Assistance Act (CDAA), the reimbursement process continues to move slowly.
As of the end of fiscal year 2023-24 the City had spent approximately $12.9 million for operating
costs in response to the storms, and the estimated total cost to repair all storm related damage
reached $48.4 million, which is an increase from the prior year estimate of over $35 million. The
maximum reimbursement for eligible costs is 93.75% (75% from FEMA and 18.75% from
CalOES), meaning that the City will pay a minimum of 6.25% for certain storm related costs.
However, the reimbursement process is slow due to staffing changes at the Federal and State
agencies and the nearly depleted federal Disaster Relief Fund. This lack of timely funding is not
expected to put the City’s projects in danger, but the City’s ability to pay back the operating reserve
and fund future storm-related projects is dependent on receiving reimbursement for incurred storm
costs. All storm-related expenditures have been submitted for FEMA reimbursement, with high-
priority projects advancing for consideration in the upcoming 2025-27 Financial Plan. These
priority projects are chosen to mitigate previous damage, protect existing infrastructure, and meet
essential obligations.
Compensated Absences The City implemented the GASB 101 pronouncement during fiscal year
2023-24, a year earlier than required. The aim of the new guidance was to more accurately portray
the liability associated with employee leave balances by taking into account the likelihood that
these leave balances will be used or converted to cash for employees. For fiscal year 2023-24, this
results in an increase to overall leave liability of $1.3 million.
Housing Loans and Fee Deferrals The City administers an extensive housing program for
workforce and low-income housing. Through the program, it has extended loans and impact fee
deferrals to low-income housing developers such as the Housing Authority of San Luis Obispo,
Transitions Mental Health, and People’s Self-Help Housing (to name a few). The loans are long-
term in nature, include a modest interest rate, and will become due in future years. The loans are
disclosed in the City’s financial statement under the respective governmental funds as loans
receivables and restricted within fund balance. The loans are reflected in the financial statements
37
Management’s Discussion and Analysis
net of an allowance for any that are forgivable at the end of the term if certain affordability
provisions are maintained. Detailed information can be found in Note 4 – Loans Receivables.
Fair Value Adjustments The City follows the practice of pooling cash and investments for all
funds under its direct daily control. Interest earned on pooled cash and investments is allocated
quarterly to the various funds based on the respective fund’s average quarterly cash balance.
Investments are stated at fair value, based on quoted market prices in accordance with GASB
standards and are adjusted to reflect any unrealized gains and losses resulting from the fair value
adjustment annually. The City’s investments and effects of the fair value adjustment are reflected
in the Financial Statements under “Use of money and property” in all funds based on the City’s
mentioned practices. More information on the City’s investments can be found in Note 2 – Cash
& Investments.
The following outlines financial highlights for the year which are detailed in the table on page 40
of the Management Discussion and Analysis.
Per the City’s Statement of Net Position, total City-wide assets increased by approximately
$104 million to $944 million representing an increase of 12.5%. The assets and deferred
outflows of resources of the City exceeded liabilities and deferred inflows at June 30, 2024 by
$525 million (net position). Cash and investment and receivable balances remained consistent
with the prior year ending at $226 million and $45.8 million city wide. Capital assets increased
from $531.9 million to $591.3 million as a result of major investments in City infrastructure
included a new parking structure, upgrades to the Water Resource Recovery Facility, and the
expansion of the City’s police department facilities. Meanwhile, overall liabilities increased
from $378 million to $436.9 million, mainly as a result of new long-term debt associated with
capital projects.
The City’s net unfunded pension liability of $181.1 million, increased by $6.8 million to end
the year at $94.8 million for the City’s Miscellaneous Plan with CalPERS. Meanwhile, the
City’s cost-sharing multiple-employer Safety Plan liability rose to $86.3 million during fiscal
year 2023-24. This was the result of increasing service costs, benefit payments, administrative
expenses and total interest on pension liability.
In governmental activities, cash and investments decreased by $5.9 million to $104.3 million
while prepaid items, representing cash outflows occurring in the current year for next year’s
expenditures, decreased by $176,000 to $182,000. Receivables from various sources increased
by just over $5.9 million to $23.6 million and loans receivable increased by $516,000 to $12.8
million.
38
Management’s Discussion and Analysis
In business-type activities, total assets increase from $474 million to $556 million. This was
attributable to several factors including completed capital assets and construction in progress,
proceeds from bonds to finance the construction of the new Cultural Art District Parking
Structure, and timing of accounts receivables at June 30, 2024.
City-wide liabilities increased by $58.5 million during the fiscal year due to increases in the
liabilities for business-type activities of $66.8 million to $252.9 million, offset by a decrease
in total liabilities for governmental activities of $8.3 million, to end the fiscal year at $184
million. Increased liabilities for business activities include the issuance of bonds for the
construction of the new Cultural Arts District Parking Structure and increases in over $19
million in the principal balance of the Clean Water State Revolving Fund Loan, which is
financing the capital improvements at the Water Resource Recovery Facility. This increase is
due to drawing down the loan funding as construction progresses, which is now nearing
completion.
The City’s governmental funds reported combined ending fund balances of $122.8 million as
of June 30, 2024. Approximately $41.7 million of this total is either nonspendable or restricted
for, transportation projects or specific programs such as affordable housing, parkland
development, public art, tourism, public safety, or infrastructure improvement programs.
Another $13.6 million is committed for purposes such as general government programs, risk
management, general contingency reserves, and public safety programs. Committed fund
balances represent the amount of money that is subject to constraints imposed by the City
Council. It takes formal action by the City Council to utilize these funds for their specific
purposes.
A further $63.5 million is assigned and intended to be use for specific purposes including
CalPERS pension payments, solid waste AB939 funding, the pension 115 trust fund, revenue
stabilization, development services, the SLO Repertory Theatre grant, storm related costs,
tenant improvements, and unspent appropriations that have been rolled over into the 2024-25
fiscal year in accordance with the City’s budget policies. Assigned fund balances represent the
amount of money that the City Council or management has identified for specific future
purposes, but do not meet the criteria to be restricted or committed. Any appropriation of these
amounts would require City Council approval. The remaining $8.9 million remains
unassigned.
The total General Fund balance increased by 7% from $42.5 million to $45.3 million. After
the adjustments to reflect non-spendable amounts of $4,868,481, committed funds of $13.2
million including the current operating reserve, assigned fund balance of $22.9 million, just
under $4.3 million remains as unassigned balance on June 30, 2024, for the General Fund.
39
Management’s Discussion and Analysis
Government-wide Overall Financial Analysis
Statement of Net Position Net position may serve over time as useful indicator of a
government’s financial position.
The following is the condensed statement of net position for the fiscal years ended. June 30, 2024
and 2023.
For the fiscal year ending on June 30, 2024, the City’s combined total assets and deferred outflows
of resources were greater than its liabilities and deferred inflows of resources by $525 million. The
largest portion of the City’s net position reflects its investment in capital assets in the amount of
$412 million (e.g., land, buildings, infrastructure, machinery, and equipment), less any related
outstanding debt used to acquire those assets. The City uses these capital assets to provide services
to citizens; consequently, these assets are not available for future spending. Although the City’s
investment in its capital assets is reported net of related debt, it should be noted that the resources
needed to repay this debt must be provided from other sources, since the capital assets themselves
cannot be used to liquidate these liabilities.
Just over $47.6 million of the City’s net position is subject to restrictions imposed by external
parties and its use is determined by those restrictions and contractual obligations. The
40
Management’s Discussion and Analysis
governmental and business-type activities each contributed $30.7 million and $15.2 million
respectively to the combined net position increase of $45.9 million resulting in a total net position
of $525 million on June 30, 2024.
Information about changes in net position for fiscal years 2023-24 and 2022-23 is summarized
below. Reasons for the changes are discussed in the following sections for governmental
activities and business-type activities.
Governmental Activities. The City’s net position in Governmental activities increased by
$30.7 million to $249.8 million on June 30, 2024 mainly as a result of large year over year
increases in grant revenues and investment income. Additionally, most tax revenue sources also
saw modest gains versus the prior year. Overall program expenses also saw increases over the
previous year with the majority of the increases in public safety and transportation. The year over
year difference in public safety expenses was driven primarily by results in the prior year which
saw a reduction of $11.7 million because of changes in assumptions for the pension plan as well
as additional voluntary payments made by the City. Otherwise, public safety expenditures were
41
Management’s Discussion and Analysis
consistent with historical trends. Meanwhile the increase in transportation program expenses were
due to the timing of ongoing roadway sealing projects as well as storm related expenditures.
Governmental Revenues: Revenues are divided into charges for services and general revenues
including applicable taxes as listed in the following table. Charges for services are revenues
directly related to service activity while operating and capital grants and contributions, and related
investment earnings are a mechanism of cost recovery. The total governmental revenue increased
from fiscal year 2023-24 by $16.7 million or 13% based on sustained growth in cyclical revenue
streams such as sales tax and transient occupancy tax which continue to benefit from post-
pandemic economic trends as well as very favorable investment income that was driven largely by
market interest rates.
General revenues are used to pay costs of providing program services such as public safety, parks
and open space, streetlights and traffic signals, recreation opportunities, Diversity, Equity, and
Inclusion (DEI) programs as well as economic development, and environmental sustainability.
Most revenue sources remained consistent with the prior year including charges for services and
were within 10% of their totals from the prior year. However operating and capital grant revenue
were significantly larger in fiscal year 2023-24; $9.8 million and $1.1 million respectively. This
was due to the recognition of ARPA funding and used for the purchase of property located at 1106
Walnut Street to provide additional space to house certain police services, ARPA funding for
affordable housing projects such as the Maxine Lewis Apartments, and several Community
Development Block Grants from the US Department of Housing and Urban Development. In
addition, as mentioned previously investment earnings were very favorable and came in at $6.5
million versus $2.4 million in the prior year.
42
Management’s Discussion and Analysis
Top Governmental Activity Revenue Sources. As shown in the chart below, the City’s top five
tax revenues accounted for 64% or $93.4 million of total revenues, with service charges accounting
for another 14% or $19.8 million and remaining revenue including grant revenue, investment
income, and other miscellaneous revenues accounted for 22% or $31.5 million. Despite economic
volatility, most of the City’s main revenue sources performed well and above initial expectations.
The following chart compares program fee revenues and expenses which is useful when reviewing
the costs of various governmental activities:
Financial Analysis of Governmental Funds
The focus of the City’s governmental funds is on near-term inflows, outflows and balances of
spendable resources. Such information is useful in assessing the City’s financing requirements and
meeting finance related legal requirements. In particular, unassigned fund balance serves as a
useful measure of a government’s net resources available for spending at the end of the fiscal year.
43
Management’s Discussion and Analysis
Major Governmental Funds. In fiscal year 2023-24 the City maintained two major governmental
funds: the General Fund and the Capital Outlay Fund. The City’s General Fund is the principal
operating fund and reported the Capital Outlay Fund is used to account for the acquisition or
construction of major capital facilities. Changes in both are highlighted in the Financial Highlights
section below.
Non-Major Governmental Funds. The City has numerous non-major governmental funds
including the Debt Service Fund and various Special Revenue Funds or Capital Projects Funds.
These funds are presented in the basic financial statements in the aggregate. A significant number
of these funds represent activity for capital projects. On June 30, 2024, these funds had an
aggregate fund balance of just under $53.8 million. Of this total, $36.8 million is restricted for
payment of debt service or specific governmental programs such as transportation, affordable
housing, and impact fee or parkland development programs.
Governmental Fund Highlights
As of June 30, 2024, the City’s governmental funds reported combined ending fund
balances of $122.8 million or an increase of $11.6 million compared to the prior fiscal year.
This was largely driven by year over year revenue growth which increased from $127.7
million to $143.5 million, outpacing the increase in overall expenditures from $119.7
million to $135.4 million and further supported by exceptionally strong investment income
as most revenue streams were within 10% of their amounts in the prior year with the
exception of property tax transfers and fines, forfeitures, and penalties which were up 15%
and 36% respectively; the latter being driving by increases in motor vehicle fines and police
issued parking fines. The total fund balance of the governmental funds consists of the
following:
2023-24 2022-23 2023-24 2022-23 2023-24 2022-23 2023-24 2022-23
Assets 53,854,773$ 50,476,488$ 23,640,163$ 28,978,567$ 64,260,031$ 62,093,501$ 141,754,967$ 141,548,556$
Liabilities 7,285,148 6,571,303 1,898,521 4,480,849 2,229,193 11,771,767 11,412,862 22,823,919
Total deferred inflows
of resources 1,239,859 1,367,117 - - 6,261,805 6,124,933 7,501,664 7,492,050
Nonspendable 4,868,481 101,462 - - - - 4,868,481 101,462
Restricted - - - - 36,837,067 37,379,153 36,837,067 37,379,153
Committed 13,188,782 19,620,444 - - 428,971 641,538 13,617,753 20,261,982
Assigned 22,926,182 14,540,709 21,741,642 24,497,718 18,795,114 6,178,534 63,462,938 45,216,961
Unassigned 4,346,321 8,275,453 - - (292,119) (2,424) 4,054,202 8,273,029
Total fund balance 45,329,766 42,538,068 21,741,642 24,497,718 55,769,033 44,196,801 122,840,441 111,232,587
Total liabilities, deferred
inflows,
and fund balances 53,854,773$ 50,476,488$ 23,640,163$ 28,978,567$ 64,260,031$ 62,093,501$ 141,754,967$ 141,548,556$
Governmental Funds - Balance Sheet
General Fund Capital Outlay Fund Total Non-Major
Governmental Funds
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Management’s Discussion and Analysis
o Non-spendable fund balance represents prepaid items or items that by their nature
are not in a spendable form. $4,868,481 was held in non-spendable at fiscal year-
end in the General Fund.
o Restricted fund balance of $36.8 million, including $11.1 million in reserves for
parkland development programs, and $10.2 million for affordable housing
programs, $11.2 million in transportation projects. These restricted fund balances
were held entirely within non-major governmental funds.
o Committed fund balance amounted to $13.6 million accounting for the City’s
reserve funds as prescribed by its Fund Balance and Reserve policies with $13.2
million held by the General fund and $429,000 held by non-major governmental
funds.
o Assigned fund balance of $63.5 million includes the amounts to be used for specific
purposes of the City but do not meet the criteria to be classified as restricted or
committed. Funds in this category include funds to be used for Development
Services, purchase orders and encumbrances that have been rolled over into fiscal
year 2024-25 in accordance with the City’s budget policies, an additional
discretionary payment to CalPERS, the section 115 Trust Fund, and solid waste
funds collected through AB939. The City also established a Revenue Stabilization
Reserve of $2 million to help insulate or smooth out budget impacts from large
fluctuations in tax revenue. The largest portion of the assigned fund balance,
approximately $45.6 million represents outstanding encumbrances and capital
projects at year end to be carried forward into the next fiscal year.
o Unassigned fund balance at year end was $4.3 million for the General fund and
($292,000) for the for non-major governmental funds. The City’s capital outlay
fund did not have any unassigned amounts at June 30, 2024. The use of the
unassigned fund balance will be prioritized based on City Council direction and
City policy.
More information about the aggregated non-major funds can be found in the combining and
individual fund statements and schedules immediately following the required supplementary
information.
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Management’s Discussion and Analysis
Financial Analysis of Enterprise Funds
The City’s business-type activities are financed through rates for services and should be self-
sufficient in covering their expenses with their sales and services revenue. Also called proprietary
funds, the City has four such entities: Water, Sewer, Parking, and Transit.
Water Fund - The net position of the water fund rose by over $7.4 million during fiscal year 2023-
24 ending the year at $109.6 million and representing an increase of 7%. Supporting the upward
trend were operating revenues and non-operating revenues that came in higher than in the previous
year despite significant increases in overall expenditures. Total operating revenue increased by
$3.7 million or 13% in 2023-24 due to increased increases in revenue streams such as water sales,
service charges, and base
fees. In addition, increases in
utility setup fees during the
year contributed to stronger
operating revenues.
Operating expenses realized
a similar increase of $3.6
million as a result of ongoing
maintenance and minor
capital outlays for aging
infrastructure throughout the
City amidst an environment
of historically high inflation.
In addition, the ever-growing regulatory environment in which the utilities department operates
also contributes to higher overall expenditures to provide staff training and regulatory compliance.
These increases in expenditures were offset because of the Nacimiento pipeline being offline due
to repairs related to the 2023 winter storms that lasted the entire duration of 2023-24 and resulted
in the water being delivered from closer sources which lead to some savings in water supply and
electrical pumping charges. In addition, staffing vacancies in the department also minimized the
increase in overall expenditures.
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Management’s Discussion and Analysis
Nonoperating revenues comprised mainly of investment income and grant revenues were
significantly higher in 2023-24 versus the prior year and came in at $2.1 million versus $741,000.
Strong investment earnings including the Water Fund’s portion of the annual fair value adjustment
of the City’s investment portfolio amounted to nearly $1.8 million. In addition, grant revenue for
2023-24 exceeded $752,000. These nonoperating revenues contributed $2.6 million of the $7.4
million increase in net position and are not expected to be ongoing.
Sewer Fund – Similar to the Water Fund, the Sewer Fund’s net position rose, though more
modestly, by $2.8 million
ending 2023-24 at just over
$122.3 million and
representing an increase of
just 2%. Contributing
factors include operating
revenues that increased by
just $962,000 and which
were surpassed by the
increase in operating
expenses of nearly $4.7
million and were further
reduced by nonoperating
revenues of over $1.5
million and transfers out of $1.2 million. Major drivers for the increase in overall expenditures
include increases in material and contract services related to ongoing construction efforts such as
the Water Resource Recovery Facility (WRRF) upgrade which are affected by inflationary
pressures, as well as additional costs associated with new safety regulations imposed by the State.
Furthermore, the Sewer Fund saw an increase of $4.7 million in interest expense which included
$3.7 million in capitalized interest on the 2018 Clean Water State Revolving Fund Loan for the
WRRF upgrade project. These increases in expenditures were offset by the benefits of favorable
investment earnings which amounted to $2.6 million for 2023-24.
Parking Fund – The Parking Fund’s net position rose by an even larger proportion than both
utility enterprise funds, increasing by 13% from $30.2 million to $34.1 million by June 30, 2024.
This upward trend was a result of increases to operating revenues from $6.0 million to $8.7 million
that that outpaced increases to operating expenditures from $4.8 million to $6.6 million during
2023-24. Non-operating revenues and transfers out meanwhile were mostly comparable to prior
year amounts and also contributed to the Parking Fund’s performance. Operating revenue increases
were the result of new parking rates that went into effect for the fiscal year as well as the
elimination of the first hour free parking in garages. However, these fees were rolled back going
47
Management’s Discussion and Analysis
into 2024-25 following feedback from the community. Meanwhile, operating expenditures
experienced increases in staffing costs, contract services, and other costs such as increases to credit
card merchant fees driven by the switch to digital payments from the pay stations implemented in
the prior year. The Parking Fund
also broke ground in November
2023 on the new Cultural Arts
District Parking Structure, which is
scheduled to be completed in early
2026, and purchased a new 44
space parking lot located at 1166
Higuera Street. Like the other
enterprise funds, the Parking Fund
also saw favorable returns to
investment earnings based on its
share of the City’s portfolio
amounting to $1.2 million for
2023-24.
Transit Fund – The Transit Fund experienced very similar financial results in 2023-24 compared
to the previous year including an overall change in net position of $1.1 million compared to $1.2
million in the previous year and resulting in an ending net position at June 30, 2024 of $9.1 million.
Both operating revenues and expenses saw increases over the prior year resulting in an operating
loss of $4.3 million which is normal for the Transit Fund that is subsidized by Federal funding
each year to maintain operations. Operating revenues came in at just over $1.0 million compared
to $810,000 in the prior year
due to the continued
expansion of the City’s transit
fleet including two new
battery electric buses and a
rollout of services previously
suspended during the
pandemic to better serve the
community. Operating
expenditures however saw
slightly larger increases that
were offset by favorable
investment income. Overall
salaries and benefits for the
Transit Fund increased by
48
Management’s Discussion and Analysis
$193,900 versus the prior year due to new staffing resources including the previously vacant
Transit Manager position, a portion of the new Mobility Services Manager overhead as well as
additional administrative resources.
Combined Program Expenses and Revenue for Business-Type Activities –
The combined total revenues for business-type activities increase from $67.3 million to $80.7
million led by increases in service charges for FY2023-24 were up by over $8.4 million from the
prior year and amounted to a total of $65.4 million. This was primarily due to increases in the
Water and Parking Funds, both experiencing increases of over $3.6 million. Similar to the prior
year, all enterprise funds experienced strong investment income and a positive fair value
adjustment in 2023-24, which resulted in $8.3 million of investment earnings during the fiscal year
including $1.7 million for the annual fair value adjustment. Grant revenues for business type
activities was modestly lower in 2023-24 versus the prior year, down from $7.4 million to $6.8
million. This is primarily due to the timing with which these revenues can be recognized which
can be hard to predict because they are often associated with the construction timelines. These
factors contributed to all enterprise fund program revenues exceeding program expenditures.
As outlined in the prior section, the program expenses for the business-type activities increased
from the prior year by nearly $17.7 million, representing a 39% increase. Significant increases in
49
Management’s Discussion and Analysis
program expenses include the following: $2.5 million in increased salaries and benefits, $6 million
in increased contract services, and $6.8 million in increased interest expense driven primarily from
new debt service for the Sewer and Parking Funds.
Several one-time factors played into the Water Fund revenues exceeding expenses in this fiscal
year, as described above.
General Fund Budgetary Highlights
A detailed budgetary comparison schedule for the year ended June 30, 2024, is presented as
required supplementary information following the notes to the financial statements. The final
budget amounts include changes that were approved by the City Council through June 30, 2024.
The following summarizes the original General Fund budget compared with the adjusted final
budget for fiscal year 2023-24. The adjusted final budget includes Council approved adjustments
as well as administrative budget adjustments in accordance with the City’s adopted fiscal policies
and procedures.
50
Management’s Discussion and Analysis
As discussed below, differences between the original budget and the final amended budget reflect
the following key changes:
Revenue budgets were increased by $3.4 million to $114.2 million to account for increases
in expected utility user tax, property tax in lieu fees, and property taxes as well as grant
revenues. Increases to the original budget were also made for public safety services,
reflecting reimbursements for grant sponsored programs.
Overall expenditure budgets were also increased by approximately $3.9 million for the
General Fund due to carryover of funding for contracts and commitments from the prior
fiscal year. Significant differences between the original and final expenditure budgets
include increases in anticipated Fire and environmental safety and general government
programs.
Net Other sources (uses) are comprised of transfers in or out and were originally budgeted
at $30.8 million and revised to $33.9 million in the final budget. Transfers may be used to
provide resources from the General Fund to other funds such as the Capital Outlay Fund
or other non-major governmental funds.
The following table compares the actual results for revenues, expenditures, and fund balance with
the final budget for the General Fund. As the table shows, revenues surpassed the final budget by
nearly $5.9 million largely driven by a positive variance in overall tax revenues of $1.3 million, a
positive variance of overall grant revenue of $916,000, and a positive variance of nearly $2.8
million in use of money and property which includes investment income, fair value adjustments
and interest income. Total expenditures came in below the final budget by over $5.7 million. This
was mainly the result of positive variances within overall community development expenditures,
leisure, cultural and social service expenditures, and general government expenditures such as in
Human Resources, Finance and Administration. The net other sources and uses ended below
budget by $3.2 million resulting in an ending fund balance that was $14.8 million greater than
anticipated.
51
Management’s Discussion and Analysis
Detail for the Local Revenue Measure
The City’s Local Revenue Measure (one and a half percent transaction tax) is a sub-fund of the
General Fund. The activities reflected in the Financial Statements of this report are provided for
information regarding the use of the Measure’s according to the community’s priorities and the
recommendation of the Revenue Enhancement Oversight Commission, a City Council advisory
body, overseeing the allocations. For 2023-24, the following revenues and expenditures were
recorded:
General Fund 2023-24
Final Budget
2023-24
Actual
Positive (Negative)
Variance
Revenues 114,168,848$ 120,067,596$ 5,898,748$
Expenditures 92,277,633 86,550,461 5,727,172
Other sources (uses) (33,877,119) (30,725,437) 3,151,682
Beginning fund balance 42,538,068 42,538,068 -
Ending fund balance 30,552,164$ 45,329,766$ 14,777,602$
Ending fund balance
Nonspendable - 4,868,481 4,868,481
Restricted - - -
Committed - 13,188,782 13,188,782
Assigned - 22,926,182 22,926,182
Unassigned - 4,346,321 4,346,321
Total ending fund balance 30,552,164$ 45,329,766$ 14,777,602$
Budget - Actual Comparison
52
Management’s Discussion and Analysis
Capital Assets and Debt Administration
Capital Assets. Capital assets, including infrastructure, are those assets that are used in the
performance of the City’s functions. As of June 30, 2024, the City’s investment in capital assets
for its governmental and business type activities amounts increased to $591 million (net of
accumulated depreciation). The investment in capital assets includes things such as: open space,
park improvements, buildings and associated improvements, vehicles and equipment, streets,
bikeways, water, wastewater, and storm drain systems.
Major capital asset2 expenditures during the fiscal year included the following:
$5.6 million for the North Chorro Neighborhood Greenway project
$4.3 million for expansion of the police department facilities
$7.2 million for emergency storm recovery projects
$1.9 million for fleet replacements across various departments
$14.8 million for the Water Resource Recovery Facility upgrade project
$13.7 million for the new Cultural Arts District Parking Structure
$4.7 million for the acquisition of the 1166 Higuera Street parking lot
$8.8 million for street reconstruction and resurfacing
$1.3 million for the North Broad Street Neighborhood Park
Long-Term Debt. As of June 30, 2024, the City’s long-term debt increased by $63.2 million to
$223.8 million outstanding. Most of the overall increase was due to increases for business-type
activities and included $43.9 million in newly issued lease revenue bonds used to finance the
construction of Cultural Arts Parking Structure as well as an increase of $19.1 million for the 2018
Clean Water State Revolving Fund loan to finance WRRF capital improvements. In addition, the
City recognized a total of $347,000 in subscription-based IT arrangements (SBITAs) in accordance
with the implementation of GASB 96 and $429,000 in leases in accordance with GASB 87.
2 Additional information on the City’s capital assets can be found in Note 5 on page 100 to the basic
financial statements.
53
Management’s Discussion and Analysis
The California Government Code provides for a limit on debt secured by real property of 3.75%
based on market value. The City’s debt management policy, however, sets a lower debt limit of
2% of assessed valuation. As of June 30, 2024, 2% of the assessed valuation was $244 million3.
As of June 30, 2024, the City did not have any general obligation debt subject to the limit.
Additional information about the City’s long-term debt can be found in Note 7 to the basic financial
statements.
Economic Factors and Next Year’s Budget and Rates
The City has weathered the economic impacts and reverberations of COVID-19 and unanticipated
costs related to storms that occurred in January and March of 2023 which impacted the
development of the two-year Financial Plan. However, caution is needed in the years ahead. As
reported in the 2024-25 Budget Supplement, the General Fund forecast indicates a modest budget
deficit in 2026-27 that, if not addressed, is expected to grow to $2.6 million by 2028-29. The
forecasted deficit is largely driven by the City’s obligation to bring a fifth fire station online by
July 2026 to satisfy conditions of the Avila Ranch Development Agreement, as well as continued
increases to required CalPERS payments.
On June 5, 2024, the City Council adopted the 2024-25 Budget Supplement with an appropriation
of $215 million for the fiscal year. The overall budget presents an ambitious work program lead
by the four major City goals of Economic Recovery, Resiliency & Fiscal Sustainability, Diversity,
Equity, and Inclusion, Housing and Homelessness, and Climate Action, Open Space, and
Sustainable Transportation.
The 2024-25 budget assumes continued growth of most revenue types followed by anticipated
slowed growth in the outer years of the forecast. Certain cyclical revenue streams including sales
tax and transient occupancy tax are not growing as quickly as they did in prior years. Property tax
3 Based on the San Luis Obispo County Assessor’s 2022-23 Annual Valuation report.
54
Management’s Discussion and Analysis
revenue continues to grow more quickly than forecasted and remains the City’s most stable
revenue source.
During 2023-24, the City recorded an all-time high in property taxes, nearly 5% higher than the
prior year due to continued growth in real estate valuations. However, data shows that the number
of home sales remain at historically low levels as prices and interest rates remain high for buyers
and potential sellers are locked into lower than market interest rates.
Tourism in the City remained strong, resulting in $11 million in transient occupancy tax (TOT) for
the General Fund and outperforming the budget by 3%. Tourism promotion continues to be led by
the City’s Tourism Business Improvement District (TBID) which receives an allocation of 20% of
TOT revenue collected.
Water Rates. The City adopted rate increases of 8.5% effective July 1, 2023, and 7.5% effective
July 1, 2024. Those rate increases are higher than historic averages and are largely necessitated by
macroeconomic conditions. An additional driver was the Council’s decision to defer and reduce
rates in 2020-21, which was done to address the uncertainties the community was experiencing
during COVID-19. The Utilities Department estimated that the deferral and reduction resulted in
a $1.4 million in reduced revenue between July 2020 and June 2022.
Sewer Rates. The City adopted rate increases of 4% effective July 1, 2023, and 4% effective July
1, 2024. Rate increases are largely necessitated by macroeconomic conditions which have resulted
in increased operational and capital delivery costs, as well as the Council action to defer and reduce
sewer rates that also occurred in 2020-21 to address impacts of COVID-19 on the community.
The City adopts its water and sewer rates with the two-year Financial Plan and in accordance with
Proposition 218 requirements.
55
Management’s Discussion and Analysis
Parking Rates. The City’s Parking Services program typically conducts a parking rate study every
two to five years to evaluate parking operations and to address changing needs in the community.
Following rate increases that went into effect in July of 2023, the City began working closely with
a consultant in November of 2023 on a Parking Rate Study following feedback from the
community. The rate study recommended parking rates and policy changes based on updated
revenue forecast modeling and the extensive community feedback. This effort culminated in May
with the City Council approving changes to make parking more affordable for locals and visitors
alike, while still enabling the Parking Fund to remain financially sustainable. This included a 33%
decrease in parking structure rates, 25%-31% decreases in on street parking rates, and a 47%
decrease in monthly parking structure permit rates. On street downtown core parking time limits
were also increased from 2 hours to 3 hours and there was a 50% reduction in parking validation
costs for businesses. The rate changes went into effect in the summer of 2024.
56
Management’s Discussion and Analysis
Requests for Additional Information
This financial report is designed to provide a general overview of the City’s finances for all those
interested. The City also prepares a Popular Annual Financial Report that can be found on the
City’s website under the Finance Department’s online documents. Questions concerning any of
the information provided in this report should be addressed to the Department of Finance, 990
Palm Street, San Luis Obispo, CA 93401.
57
58
BASIC FINANCIAL STATEMENTS
59
60
City of San Luis Obispo, California
Government-Wide Financial Statements
For the Fiscal Year Ended June 30, 2024
The government-wide financial statements are designed to provide readers with a broad overview of the City’s
finances, in a manner similar to a private-sector business.
The statement of net position presents information on all the City’s assets and deferred outflows, as well as
liabilities and deferred inflows, with the difference reported as net position. Over time, increases or decreases in net
position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City’s net position changed during the current
fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, all the current fiscal year’s revenues and expenses are
considered regardless of when cash is received or paid (e.g., earned but unused vacation leave or uncollected taxes).
Government-wide financial statements distinguish City governmental activities that are principally supported by
taxes and intergovernmental revenues from other business-type activities that are intended to recover all or a
significant portion of their costs through user fees and charges. Governmental activities include public safety,
transportation, community development, leisure, cultural and social services, and general government. Business-
type activities include water, wastewater, parking, and transit.
61
62
Governmental
Activities
Business-Type
Activities Total
Assets
Current assets:
Cash and investments 104,266,788$ 122,089,627$ 226,356,415$
Taxes receivable 12,046,009 - 12,046,009
Accounts receivable 2,322,566 10,181,421 12,503,987
Accrued interest receivable 4,295,927 1,679,561 5,975,488
Internal balances 4,845,000 (4,845,000) -
Prepaid items and other assets 181,842 - 181,842
Lease receivables 104,624 114,642 219,266
Loans receivable 12,823,028 2,275,087 15,098,115
Total current assets 140,885,784 131,495,338 272,381,122
Noncurrent assets:
Cash and investments held by fiscal agent 8,888 38,723,107 38,731,995
Investment in joint venture - 3,421,594 3,421,594
Lease receivables 852,055 37,302,114 38,154,169
Nondepreciable capital assets 64,660,540 195,802,663 260,463,203
Depreciable capital assets (net of accumulated
depreciation) 180,922,597 149,931,656 330,854,253
Total noncurrent assets 246,444,080 425,181,134 671,625,214
Total assets 387,329,864 556,676,472 944,006,336
Deferred Outflows of Resources
Other post-employment benefits related 1,215,321 683,440 1,898,761
Pension related 54,571,517 8,232,474 62,803,991
Unamortized loss on refunding of debt 175,166 133,114 308,280
Total deferred outflows of resources 55,962,004 9,049,028 65,011,032
Liabilities
Current liabilities:
Accounts payable 5,197,528 8,172,780 13,370,308
Accrued salaries 3,034,858 375,752 3,410,610
Unearned revenue 2,916,365 8,466,347 11,382,712
Interest payable 72,705 1,396,905 1,469,610
Other liabilities 97,510 - 97,510
Compensated absence - due within one year 3,114,901 641,184 3,756,085
Long-term debt - due within one year 1,237,056 6,487,143 7,724,199
Total current liabilities 15,670,923 25,540,111 41,211,034
Noncurrent liabilities:
Compensated absence - due in more than on year 1,335,047 274,793 1,609,840
Long-term debt - due in more than one year 16,073,959 194,609,660 210,683,619
Net OPEB liability 1,350,404 933,910 2,284,314
Net pension liability 149,565,853 31,547,398 181,113,251
Total noncurrent liabilities 168,325,263 227,365,761 395,691,024
Total liabilities 183,996,186 252,905,872 436,902,058
Deferred Inflows of Resources
Other post-employment benefits related 2,154,820 899,638 3,054,458
Pension related 6,444,984 120,008 6,564,992
Lease related 899,371 36,269,796 37,169,167
Total deferred inflows of resources 9,499,175 37,289,442 46,788,617
Net Position
Net investment in capital assets 228,447,288 183,458,877 411,906,165
Restricted
Debt service - 9,467,974 9,467,974
Transportation projects 11,232,312 1,508,145 12,740,457
Affordable housing programs 10,215,217 - 10,215,217
Parkland development programs 11,073,516 - 11,073,516
Public art programs 1,526,588 - 1,526,588
Tourism programs 1,523,656 - 1,523,656
Subsequent year expenditures 897,746 - 897,746
Claims 181,842 - 181,842
Unrestricted (15,301,658) 81,095,190 65,793,532
Total net position 249,796,507$ 275,530,186$ 525,326,693$
City of San Luis Obispo, California
Statement of Net Position
June 30, 2024
The accompanying notes are an integral part of these financial statements.
63
City of San Luis Obispo, California
Statement of Activities
For the Fiscal Year Ended June 30, 2024
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Governmental
Activities
Business-type
Activities Total
Governmental activities:
Public safety 43,148,712$ 3,378,182$ 1,016,165$ 44,899$ (38,709,466)$ -$ (38,709,466)$
Transportation 17,740,407 1,157,342 2,826,671 1,002,770 (12,753,624) - (12,753,624)
Leisure, culture and social services 12,871,004 4,761,048 - - (8,109,956) - (8,109,956)
Community development 19,527,448 9,717,278 2,011,368 - (7,798,802) - (7,798,802)
General government 22,777,642 801,522 9,301,836 251,562 (12,422,722) - (12,422,722)
Interest on long-term debt 615,966 - - - (615,966) - (615,966)
Total governmental activities 116,681,179 19,815,372 15,156,040 1,299,231 (80,410,536) - (80,410,536)
Business-type activities:
Water 25,666,319 31,394,962 752,267 - - 6,480,910 6,480,910
Sewer 22,831,476 23,302,912 915,997 - - 1,387,433 1,387,433
Parking 8,962,908 9,663,683 - - - 700,775 700,775
Transit 5,352,380 1,003,116 5,094,670 - - 745,406 745,406
Total business-type activities 62,813,083 65,364,673 6,762,934 - - 9,314,524 9,314,524
Total primary government 179,494,262$ 85,180,045$ 21,918,974$ 1,299,231$ (80,410,536) 9,314,524 (71,096,012)
General revenues and transfers:
General sales and use taxes 22,285,972 - 22,285,972
Transaction and use tax - Local Revenue Measure 30,597,288 - 30,597,288
Property tax (including real property transfer tax)16,381,159 - 16,381,159
Transient occupancy tax (TOT)11,063,012 - 11,063,012
Utility users tax 6,301,505 - 6,301,505
Property tax-in-lieu of vehicle license fees 6,815,975 - 6,815,975
Franchise taxes 2,366,286 - 2,366,286
Business tax 2,942,425 - 2,942,425
Cannabis Tax 1,116,495 - 1,116,495
Other taxes 784,587 - 784,587
Total taxes 100,654,704 - 100,654,704
Unrestricted investment earnings 6,473,385 8,367,903 14,841,288
Other revenue 1,369,106 - 1,369,106
Income from investment in joint venture - 198,170 198,170
Transfers 2,636,032 (2,636,032) -
Total general revenues and transfers 111,133,227 5,930,041 117,063,268
Change in net position 30,722,691 15,244,565 45,967,256
Net position, beginning of year 219,073,816 260,285,621 479,359,437
Net position, end of year 249,796,507$ 275,530,186$ 525,326,693$
Program Revenues
Net Revenues (Expenses) and
Changes in Net Position
The accompanying notes are an integral part of these financial statements.64
City of San Luis Obispo, California
Governmental Funds Financial Statements
For the Fiscal Year Ended June 30, 2024
Governmental funds are used to account for essentially the same functions reported as governmental activities in the
government-wide financial statements. However, unlike the government-wide financial statements, governmental
fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of
spendable resources available at the end of the fiscal year. Such information reflects financial resources available in
the near future to finance the City’s programs.
Major governmental funds are defined generally as having significant activities or balances in the current year. The
funds described below were determined to be Major Governmental Funds by the City for the current fiscal year.
Individual nonmajor funds may be found in the Supplementary section.
General Fund
The General Fund is used for all the general revenues of the City not specifically levied or collected for other City
funds, and the related expenditures. The major revenue sources for this Fund are property taxes, sales taxes,
franchise fees, business licenses, unrestricted revenues from the state, fines and forfeitures and interest income.
Expenditures are made for community development, public safety, public works, and other services.
Capital Outlay Fund
This fund was established to account for all of the City’s construction projects and capital purchases in excess of
$25,000 with the exception of those funded through non-major capital project funds and Enterprise Funds. Financing
is provided primarily through transfers in from the General Fund, and from State and Federal Grants.
65
66
General
Capital Outlay
Fund
Other
Governmental
Funds
Total
Governmental
Funds
Assets
Cash and investment 33,567,529$ 23,475,331$ 47,223,928$ 104,266,788$
Taxes receivable 11,831,086 - 214,923 12,046,009
Accounts receivable 1,691,089 164,832 395,527 2,251,448
Other receivables 71,118 - - 71,118
Due from other funds 166,601 - - 166,601
Accrued interest receivable 440,475 - 3,855,452 4,295,927
Prepaid items 23,481 - - 23,481
Cash and investments held by fiscal agent - - 8,888 8,888
Advances to other funds 4,845,000 - - 4,845,000
Loans receivable 261,715 - 12,561,313 12,823,028
Lease receivable 956,679 - - 956,679
Total assets 53,854,773$ 23,640,163$ 64,260,031$ 141,754,967$
Liabilities, Deferred Inflows of Resources
and Fund Balance
Liabilities:
Accounts payable 2,106,359$ 1,898,521$ 1,192,648$ 5,197,528$
Accrued liabilities 3,028,797 - 6,061 3,034,858
Due to other funds - - 166,601 166,601
Unearned revenue 2,052,482 - 863,883 2,916,365
Other liabilities 97,510 - - 97,510
Total liabilities 7,285,148 1,898,521 2,229,193 11,412,862
Deferred Inflows of Resources:
Lease related 899,371 - - 899,371
Unavailable revenue 340,488 - 6,261,805 6,602,293
Total deferred inflows of resources 1,239,859 - 6,261,805 7,501,664
Fund balance:
Nonspendable 4,868,481 - - 4,868,481
Restricted for:
Transportation projects - - 11,232,312 11,232,312
Affordable housing programs - - 10,215,217 10,215,217
Parkland development programs - - 11,073,516 11,073,516
Public art programs - - 1,526,588 1,526,588
Tourism programs - - 1,523,656 1,523,656
Public safety program - - 897,746 897,746
Infrastructure improvement - - 368,032 368,032
Committed to:
General government programs 1,776,826 - - 1,776,826
Risk management 585,456 - - 585,456
Contingency fund 10,826,500 - - 10,826,500
Public safety program - - 428,971 428,971
Assigned to:
CalPERS pension payment 2,000,000 - - 2,000,000
Solid Waste AB939 237,147 - - 237,147
Establishment of Section 115 Trust 2,000,000 - - 2,000,000
Revenue stabilization 2,000,000 - - 2,000,000
Development services 214,136 - - 214,136
SLO Repertory Theater Grant 3,940,000 - - 3,940,000
1,400,000 - - 1,400,000
Storm Related costs 5,125,068 - - 5,125,068
Contingency fund - - 900,000 900,000
Subsequent year expenditures 6,009,831 21,741,642 17,895,114 45,646,587
Unassigned 4,346,321 - (292,119) 4,054,202
Total fund balance 45,329,766 21,741,642 55,769,033 122,840,441
Total liabilities, deferred inflows of resources
and fund balance 53,854,773$ 23,640,163$ 64,260,031$ 141,754,967$
City of San Luis Obispo, California
Balance Sheet
Governmental Funds
June 30, 2024
Tenant Improvement program/Economic
The accompanying notes are an integral part of these financial statements.
67
Total fund balance - governmental funds 122,840,441$
Capital assets at estimated historical cost $ 253,436,160
Accumulated depreciation (7,853,023)
245,583,137
6,602,293
1,215,321
158,361
Lease revenue bonds 16,556,941$
Lease liabilities 429,141
SBITA liabilities 324,933
Compensated absences 4,449,948
Accrued interest payable 72,705
(21,833,668)
Net pension liability is not a current financial obligation and, therefore, is not reported
in the governmental funds. (149,565,853)
Net OPEB liability is not a current financial obligation and, therefore, is not reported
in the governmental funds. (1,350,404)
(2,154,820)
(6,444,984)
Total net position - governmental activities 249,796,507$
City of San Luis Obispo, California
Reconciliation of the Governmental Funds Balance Sheet
to the Government-wide Statement of Net Position
June 30, 2024
Capital assets used in governmental activities are not financial resources and therefore are not reported in the
funds.
Other long-term assets are not available to pay for current period expenditures and therefore are not reported
in the governmental funds.
Deferred outflows of resources, pension related, are not current asset or resources; and they are not due in the
current period and therefore are not reported in the governmental funds.
Deferred outflows of resources, OPEB related, are not current asset or resources; and they are not due in the
current period and therefore are not reported in the governmental funds.
Deferred amounts related to the refunding of long-term debt were not current financial resources. Therefore,
they were not reported in the Governmental Funds Balance Sheet.
Unavailable revenue recorded in the fund financial statements resulting from activities in which revenues
were earned but funds were not available are reclassified as revenues in the Government-Wide Financial
Statements.
54,571,517
175,166
Long-term liabilities, including related interest payable, are not due and payable in the current period and
therefore are not reported in the funds.
Deferred inflow of resources, pension related, are not current assets or resources; and they are not due in the
current period and therefore are not reported in the governmental funds.
Deferred inflow of resources, OPEB related, are not current assets or resources; and they are not due in the
current period and therefore are not reported in the governmental funds.
The accompanying notes are an integral part of these financial statements.
68
General
Capital Outlay
Fund
Other
Governmental
Funds
Total
Governmental
Funds
Revenues:
22,285,972$ -$ -$ 22,285,972$
30,597,288 - - 30,597,288
16,379,368 - 258,289 16,637,657
11,063,012 - - 11,063,012
6,301,505 - - 6,301,505
6,815,975 - - 6,815,975
2,366,286 - - 2,366,286
2,941,928 - - 2,941,928
1,116,495 - - 1,116,495
528,088 - - 528,088
266,103 - - 266,103
3,907,185 - 1,422,562 5,329,747
2,513,422 1,210,058 13,664,185 17,387,665
12,360,708 91,000 6,656,991 19,108,699
624,261 11,289 100,497 736,047
Total revenues 120,067,596 1,312,347 22,102,524 143,482,467
Expenditures:
Current:
General government 17,560,912 - 10,018 17,570,930
Public safety 39,198,630 - 691,215 39,889,845
Transportation 5,535,071 - 22,886 5,557,957
Leisure, cultural and social services 11,088,967 - - 11,088,967
Community development 12,500,539 - 2,844,807 15,345,346
Debt service:
Principal 363,033 - 867,691 1,230,724
Interest and fiscal charges 52,508 - 669,345 721,853
Capital outlay:
Public safety - - 445,716 445,716
Transportation - - 2,267,633 2,267,633
Leisure, cultural and social services - - 2,760,876 2,760,876
Community development - 33,267,342 3,499,890 36,767,232
General government 250,801 838,712 636,546 1,726,059
Total expenditures 86,550,461 34,106,054 14,716,623 135,373,138
Revenues over (under) expenditures 33,517,135 (32,793,707) 7,385,901 8,109,329
(Continued)
Miscellaneous
Real property transfer tax
Fines, forfeitures and penalties
Use of money and property
Subventions and grants
Charges for services
Utility users tax
Property tax in lieu of VLF
Franchise taxes
Business tax
Cannabis Tax
City of San Luis Obispo, California
Statements of Revenues, Expenditures, and
Changes in Fund Balances
Governmental Funds
For the Fiscal Year Ended June 30, 2024
Sales and use tax - general
Transaction and use tax - Local
Revenue Measure
Property tax (including real property
transfer tax)
Transient occupancy tax
The accompanying notes are an integral part of these financial statements.
69
Page 2
General
Capital Outlay
Fund
Other
Governmental
Funds
Total
Governmental
Funds
Other Financing Sources (Uses):
Transfers in 10,263,016$ 30,037,631$ 13,305,310$ 53,605,957$
Transfers out (40,738,002) - (10,231,923) (50,969,925)
Other Financing Sources – SBITA 137,233 - - 137,233
Other Financing Sources – bond issuances 2,060,053 - - 2,060,053
Other Financing Uses - Payment to Escrow (2,447,737) - - (2,447,737)
Total other financing sources (uses) (30,725,437) 30,037,631 3,073,387 2,385,581
Net change in fund balance 2,791,698 (2,756,076) 10,459,288 10,494,910
Fund balance, beginning of year 42,538,068 24,497,718 44,196,801 111,232,587
Prior year restatements - - 1,112,944 1,112,944
Fund balance, beginning of year, as restated 42,538,068 24,497,718 45,309,745 112,345,531
Fund balance, end of year 45,329,766$ 21,741,642$ 55,769,033$ 122,840,441$
City of San Luis Obispo, California
Statements of Revenues, Expenditures, and
Changes in Fund Balances
Governmental Funds
For the Fiscal Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements.
70
Total net change in fund balance - governmental funds 10,494,910$
Expenditures for capital outlay - governmental funds $ 29,452,569
Depreciation expense (7,853,023)
21,599,546
Gain on disposal of capital asset 2,010
Repayments of long-term debt are recognized as expenditures in the governmental funds. In
the government-wide statements, repayments of long-term liabilities are reported as reductions
of liabilities. Expenditures for repayment of the principal portion of long-term debt were:3,645,723
The issuance of long-term debt provides current financial resources to governmental funds.
This transaction, however, has no effect on net position. Proceeds from the issuance of
bonds was: (2,057,233)
(11,678)
Bond premiums are reported in the governmental funds when the bonds are issued, and are
capitalized and amortized in the statement of net position. The amount of bond premiums
capitalized during the current period was: (140,053)
it is due. In the statement of activities, interest expense is recognized as the interest accrues,
regardless of when it is due. The difference between interest expense paid and interest
accrued was:18,678
131,624
Changes in actuarially determined claim liabilities for uninsured claims do not provide current
financial resources and are not reported in the governmental funds. (98,357)
governmental funds. In the statement of activities, compensated absences are measured
by the amounts earned. The difference between compensated absences paid and
compensated absences earned was:(1,099,362)
1,280,254
17,500,002
539,704
Pension expenses reported in the statement of activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental funds (20,696,465)
OPEB expenses reported in the statement of activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental funds (386,612)
Total change in net position - governmental activities 30,722,691$
City of San Luis Obispo, California
Current year employer pension contributions are recorded as expenditures in the
governmental funds, however, these amounts are reported as a deferred outflow of
resources in the Government-Wide Statement of Net Position
Current year employer OPEB contributions are recorded as expenditures in the
governmental funds, however, these amounts are reported as a deferred outflow of
resources in the Government-Wide Statement of Net Position
Compensated absences are measured by the amounts paid during the period in the
Capital outlay net of depreciation expense and disposal.
Interest on long-term debt is recognized as an expenditure in the governmental funds when
Change in unamortized discount/premium (netted with debt)
Reconciliation of the Statement of Revenues,
Expenditures and Changes in Fund Balances of
Governmental Funds to the Statement of Activities
For the Fiscal Year Ended June 30, 2024
Deferred amounts related to the refunding of long-term debt were not current financial
resources. Therefore, they were not reported in the Governmental Funds Balance Sheet.
This amount is to be amortized over the life of the long-term debt. This amount is the
current year net amortization expense.
Revenues that are not considered to be available are reported as unavailable revenues in
the governmental funds, however, these amounts are recognized in the Government-Wide
Statement of Activities. This amount represents the change in unavailable revenues.
The accompanying notes are an integral part of these financial statements.
71
72
City of San Luis Obispo, California
Proprietary Funds Financial Statements
For the Fiscal Year Ended June 30, 2024
Proprietary funds account for City operations financed and operated in a manner like a private business enterprise.
The intent of the City is that the cost of providing goods and services be financed primarily through user charges.
Proprietary funds are generally used to account for services for which the City charges customers; either outside
customers or internal units/divisions of the City. Proprietary funds provide the same type of information as shown in
the government-wide financial statements, only in more detail. The only type of proprietary fund the City maintains
is enterprise funds. The Water, Sewer, Parking, and Transit Funds are presented as business-type activities in the
government-wide financial statements. The City considers all four of its enterprise funds to be major funds.
Water Fund
This fund accounts for the provision of water services to the residents of the City as well as some customers in the
County. All activities necessary to provide such services are accounted for in this fund, including, but not limited to,
administration, operations, maintenance, capital improvements and debt service.
Sewer Fund
This accounts for the provision of wastewater collection and treatment services to the residents of the City as well as
some customers in the County. All activities necessary to provide such services are accounted for in this fund,
including, but not limited to, administration, operations, maintenance, capital improvements and debt service.
Parking Fund
This fund accounts for activities related to the implementation of the Access and Parking Management Plan,
including the operation of municipal parking lots, parking structures, parking meters and residential parking districts.
All activities necessary to provide such services are accounted for in this fund, including, but not limited to,
administration, operations, maintenance, capital improvements and debt service.
Transit Fund
This fund accounts for the operation and maintenance of the City's transit system. Although user fees are not the
primary funding source for the operation of the system, the State of California and the Federal government, which
provide the major funding sources for the system, require that local transit systems be accounted for on an enterprise
fund basis.
73
74
Water Sewer Parking Transit Totals
Assets
Current assets:
Cash and investment 41,295,510$ 59,195,597$ 12,747,981$ 8,850,539$ 122,089,627$
Accounts receivable 4,505,946 3,185,723 92,610 2,397,142 10,181,421
Lease Receivables - - 114,642 - 114,642
Accrued interest receivable 446,238 410,777 781,966 40,580 1,679,561
Total current assets 46,247,694 62,792,097 13,737,199 11,288,261 134,065,251
Noncurrent assets:
34,582 278 38,688,247 - 38,723,107
Investment in joint venture 3,421,594 - - - 3,421,594
Loan Receivables 1,476,342 798,745 - - 2,275,087
Lease Receivables - - 37,302,114 - 37,302,114
Capital assets:
Land 945,926 2,176,114 10,692,838 - 13,814,878
SBITA assets 38,513 38,513 - - 77,026
Infrastructure 122,642,658 93,826,165 29,386,149 110,972 245,965,944
Buildings and improvements 19,139,492 5,074,388 1,101,218 5,212,278 30,527,376
Equipment 6,775,553 6,698,589 2,246,355 10,558,191 26,278,688
Construction in progress 11,635,744 150,118,328 17,711,588 2,522,125 181,987,785
Total capital assets 161,177,886 257,932,097 61,138,148 18,403,566 498,651,697
Less accumulated depreciation (69,543,630) (56,315,442) (16,248,087) (10,810,219) (152,917,378)
Capital assets, net of
accumulated depreciation 91,634,256 201,616,655 44,890,061 7,593,347 345,734,319
Total noncurrent assets 96,566,774 202,415,678 120,880,422 7,593,347 427,456,221
Total assets 142,814,468 265,207,775 134,617,621 18,881,608 561,521,472
Deferred Outflows of Resources
Pension related 3,715,655 3,441,792 852,259 222,768 8,232,474
281,667 311,466 70,871 19,436 683,440
28,495 6,739 97,880 - 133,114
4,025,817 3,759,997 1,021,010 242,204 9,049,028
(Continued)
Total deferred outflow of
resources
Cash and investments held by
fiscal agent
Other post-employment benefits
related
Unamortized loss on refunding of
debt
Enterprise Funds
City of San Luis Obispo
Statement of Net Position
Business-Type Activities - Enterprise Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements.
75
Page 2
Water Sewer Parking Transit Totals
Liabilities
Current liabilities:
Accounts payable 1,525,384$ 3,742,379$ 2,265,483$ 639,534$ 8,172,780$
Accrued liabilities 158,471 130,458 57,066 29,757 375,752
Compensated absences 305,795 245,685 57,394 32,310 641,184
Unearned revenue - - - 8,466,347 8,466,347
Interest payable 56,783 1,047,457 292,665 - 1,396,905
Current portion of long-term debt 1,168,708 3,828,198 1,490,237 - 6,487,143
Total current liabilities 3,215,141 8,994,177 4,162,845 9,167,948 25,540,111
Noncurrent liabilities:
Compensated absences 131,055 105,294 24,597 13,847 274,793
Advances from other funds - - 4,845,000 - 4,845,000
Lease revenue bonds 8,173,157 795,769 49,986,786 - 58,955,712
Installment sale agreement - 2,327,947 - - 2,327,947
State loan/note payable 10,484,913 120,298,658 2,542,430 - 133,326,001
Net pension liability 13,945,041 13,324,944 3,485,457 791,956 31,547,398
435,753 398,683 73,527 25,947 933,910
Total noncurrent liabilities 33,169,919 137,251,295 60,957,797 831,750 232,210,761
Total liabilities 36,385,060 146,245,472 65,120,642 9,999,698 257,750,872
Deferred Inflows of Resources
Pension related 107,646 11,040 507 815 120,008
385,598 377,812 114,421 21,807 899,638
Lease related - - 36,269,796 - 36,269,796
493,244 388,852 36,384,724 22,622 37,289,442
Net Position
Net investment in capital assets 71,835,973 74,372,822 29,656,735 7,593,347 183,458,877
Restricted:
Debt service 34,582 4,956,862 4,476,530 - 9,467,974
Transportation projects - - - 1,508,145 1,508,145
Unrestricted 38,091,426 43,003,764 - - 81,095,190
Total net position 109,961,981$ 122,333,448$ 34,133,265$ 9,101,492$ 275,530,186$
Other post-employment benefits
related
Total deferred inflow of
resources
City of San Luis Obispo
Statement of Net Position
Business-Type Activities - Enterprise Funds
June 30, 2024
Enterprise Funds
Net other post-employment benefits
liability
The accompanying notes are an integral part of these financial statements.
76
Water Sewer Parking Transit Total
Operating revenues:
Charges for sales and service 26,454,326$ 20,350,935$ 8,458,952$ 1,000,790$ 56,265,003$
Impact fees 4,686,719 2,911,429 - - 7,598,148
Fines and forfeitures - 3,191 1,190,030 - 1,193,221
Other revenues 253,917 37,357 14,701 2,326 308,301
Total operating revenues 31,394,962 23,302,912 9,663,683 1,003,116 65,364,673
Operating expenses:
Salaries and benefits 5,842,089 5,846,159 2,121,001 410,772 14,220,021
Supplies and maintenance 1,973,040 2,536,903 967,415 444,294 5,921,652
Contract services 12,044,988 4,685,544 1,829,764 3,597,363 22,157,659
General government 1,843,251 1,911,466 1,019,048 463,491 5,237,256
Depreciation 3,340,219 2,773,962 678,653 436,460 7,229,294
Total operating expenses 25,043,587 17,754,034 6,615,881 5,352,380 54,765,882
Operating income (loss) 6,351,375 5,548,878 3,047,802 (4,349,264) 10,598,791
Nonoperating revenues (expenses)
Use of money and property 1,794,596 2,611,885 3,584,097 377,325 8,367,903
Grants 752,267 915,997 - 5,094,670 6,762,934
Interest expense and fiscal charges (622,732) (5,077,442) (2,347,027) - (8,047,201)
Income (loss) from investment
in joint venture 198,170 - - - 198,170
Total nonoperating revenues
(expenses)2,122,301 (1,549,560) 1,237,070 5,471,995 7,281,806
Income (loss) before transfers
and capital contributions 8,473,676 3,999,318 4,284,872 1,122,731 17,880,597
Capital Contributions
Transfers out (1,075,110) (1,192,689) (368,233) - (2,636,032)
Total transfers (1,075,110) (1,192,689) (368,233) - (2,636,032)
Change in net position 7,398,566 2,806,629 3,916,639 1,122,731 15,244,565
Net position, beginning of year 102,563,415 119,526,819 30,216,626 7,978,761 260,285,621
Net position, end of year 109,961,981$ 122,333,448$ 34,133,265$ 9,101,492$ 275,530,186$
Enterprise Funds
City of San Luis Obispo, California
Statement of Revenues, Expenses, and Changes in Fund Net Assets
Business-Type Activities - Enterprise Funds
For the Fiscal Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements.
77
Water Sewer Parking Transit Total
Cash flows from operating activities:
Cash received from customers 30,485,707$ 22,902,963$ 9,706,343$ 2,211,862$ 65,306,875$
(12,911,023) (9,247,749) (1,448,232) (4,317,891) (27,924,895)
(1,843,251) (1,911,466) (1,019,048) (463,491) (5,237,256)
(5,340,393) (5,372,295) (1,959,174) (353,413) (13,025,275)
Net cash provided by (used in)
operating activities 10,391,040 6,371,453 5,279,889 (2,922,933) 19,119,449
Operating grants received 752,267 915,997 - 5,094,670 6,762,934
Transfers to other funds (1,075,110) (1,192,689) (368,233) - (2,636,032)
(322,843) (276,692) (368,233) 5,094,670 4,126,902
Cash flows from capital and related
financing activities:
(6,870,855) (16,763,967) (19,730,866) (1,665,372) (45,031,060)
Capital grants received - - - - -
Disposition of capital assets - - - - -
SBITA payment paid - - - - -
Principal paid on debt financing (1,127,617) (1,070,901) 2,960,604 - 762,086
Interest paid on debt financing (750,934) (4,062,332) (2,232,398) - (7,045,664)
Proceeds from interfund loan - - 4,845,000 - 4,845,000
Proceeds from issuance of debt - 19,097,239 43,860,000 - 62,957,239
Net cash used in capital and
related financing activities (8,749,406) (2,799,961) 29,702,340 (1,665,372) 16,487,601
Cash flows from investing activities:
Use of money and property 1,689,645 2,488,564 2,732,858 363,741 7,274,808
Net cash provided by
investing activities 1,689,645 2,488,564 2,732,858 363,741 7,274,808
3,008,436 5,783,364 37,346,854 870,106 47,008,760
38,321,656 53,412,511 14,089,374 7,980,433 113,803,974
41,330,092$ 59,195,875$ 51,436,228$ 8,850,539$ 160,812,734$
(Continued)
Enterprise Funds
City of San Luis Obispo, California
Statement of Cash Flows
Business-Type Activities - Enterprise Funds
For the Fiscal Year Ended June 30, 2024
Cash payments to suppliers for goods
and services
Cash payments to General Fund for
interfund services
Cash payments to employees for
services
Acquisition and construction of
capital assets
Cash flows from noncapital
financing activities:
Net change in cash and cash
equivalents
Cash and cash equivalents,
beginning of year
Cash and cash equivalents, end of
year
Net cash provided by (used in)
noncapital financing activities
The accompanying notes are an integral part of these financial statements.
78
City of San Luis Obispo, California
Statement of Cash Flows
Business-Type Activities - Enterprise Funds
For the Fiscal Year Ended June 30, 2024
Page 2
Water Sewer Parking Transit Total
Operating income (loss) 6,351,375$ 5,548,878$ 3,047,802$ (4,349,264)$ 10,598,791$
Depreciation 3,340,219 2,773,962 678,653 436,460 7,229,294
Accounts receivable (909,255) (399,949) 42,660 (248,306) (1,514,850)
Accounts payable 1,107,005 (2,025,302) 1,348,947 (276,234) 154,416
Unearned revenue - - - 1,457,052 1,457,052
134,823 137,728 46,378 38,807 357,736
391,846 359,015 123,307 19,815 893,983
(24,973) (22,879) (7,858) (1,263) (56,973)
Net cash provided by (used in)
operating activities 10,391,040$ 6,371,453$ 5,279,889$ (2,922,933)$ 19,119,449$
Reconciliation of cash and investments to the balance sheet:
Cash and cash equivalents 41,295,510$ 59,195,597$ 12,747,981$ 8,850,539$ 122,089,627$
34,582 278 38,688,247 - 38,723,107
Total cash and investments 41,330,092$ 59,195,875$ 51,436,228$ 8,850,539$ 160,812,734$
Noncash investing, capital, and financing activities:
None
Deferred OPEB and net OPEB
liability
Cash and investments held by fiscal
agent
Reconciliation of operating income
(loss) to net cash provided by (used
in) operating activities:
Adjustments to reconcile operating
income (loss) to net cash provided by
(used in) operating activities:
Change in assets, deferred outflows
of resources, liabilities, and deferred
inflows of resources:
Accrued salaries and
compensated absences
Deferred pensions and net
pension liability
Enterprise Funds
The accompanying notes are an integral part of these financial statements.
79
80
City of San Luis Obispo, California
Fiduciary Funds Financial Statements
For the Fiscal Year Ended June 30, 2024
Custodial funds are the only type of fiduciary funds maintained by the City. These are used to account for resources
held for the benefit of parties outside the primary government. Fiduciary funds are not reflected in the government-
wide financial statements because the resources of those funds are not available to support the City’s own programs.
An example of a custodial fund may include donations provided to the City to be utilized for specific purposes as
well as other funds held in trust of another entity to be utilized for a specific purpose. A specific example is the
Hazardous Materials Task Force Fund, created to provide special fire services around the County, which is funded
by multiple county and city agencies. The accounting used for fiduciary funds is much like that used for proprietary
funds. The Custodial Funds are presented with the fund financial statements in the supplementary information
section.
81
82
Custodial Funds
Assets
Current assets:
Cash and investment 36,059,266$
Accounts receivable 17,777
Accrued interest receivable 35,089
Capital assets, net of accumulated depreciation 663,072
Total assets 36,775,204
Liabilities
Accounts payable 217,282
Compensated absence 51,453
Accrued Salaries 17,087
Other liabilities 2,000
Total liabilities 287,822
NET POSITION
Restricted for
Individuals, organizations, and other governments 36,487,382
Total Net Position 36,487,382$
City of San Luis Obispo, California
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements.
83
Custodial Funds
ADDITIONS:
Assessment revenue 1,274,999$
Charges for services 1,309,781
Charges for public programming 55,636
Contribution from developers 14,121,073
Other revenue 2,353,241
Use of money and property 896,819
Total additions 20,011,549
DEDUCTIONS:
Administration expenses 1,195,167
Contractual services 1,818,909
Materials and supplies 618,357
Public programming 1
Use of developer deposits 1,270,866
Depreciation 63,283
Total deductions 4,966,583
Change in net position 15,044,966
NET POSITION:
Beginning of year 21,442,416
End of year 36,487,382$
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended June 30, 2024
City of San Luis Obispo, California
The accompanying notes are an integral part of these financial statements.
84
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page
Note 1: Summary of Significant Accounting Policies 1
Description of the Reporting Entity 1
Government-wide and Fund Financial Statements 1
Measurement Focus, Basis of Accounting and Basis of Presentation 1
Assets, Liabilities, and Net Position or Fund Balance 3
Reconciliation of Government-wide and Fund Financial Statements 6
Budgets and Budgetary Accounting 6
Fair Value Measurements 8
Note 2: Cash and Investments 8
Funds with Fiscal Agent 8
Investments 9
Note 3: Property Taxes 13
Note 4: Loan Receivable 14
Note 5: Capital Assets 14
Note 6: Leases 16
Note 7: Long Term Debt 18
Summary of Long-Term Debt 18
Governmental Activities Summary: 19
Revenue Bonds 19
Lease-Purchase Financing 21
2014 Energy Sources Conservation State Loan 21
Subscription Based Information Technology Arrangements 21
Business-Type Activities Summary: 22
Revenue Bonds 22
Loans 23
Installment Sale Agreements 24
Special Assessment Debt Without City Commitment 24
Note 8: Pension Plans 25
Agent-Multiple Employer Plan 25
General Information about the Pension Plan 25
Net Pension Liability 26
Changes in the Net Pension Liability 28
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions 29
Cost-Sharing Employer Plan 29
General Information about the Pension Plan 29
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions 31
85
City of San Luis Obispo, California
Notes to the Financial Statements
Table of Contents
June 30, 2024
Page 2
Page
Payable to the Pension Plan 33
Note 9: Other Post-Employment Benefits (OPEB) 34
General Information about OPEB 34
Net OPEB Liability 35
Changes in the Net OPEB Liability 36
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB 37
Payable to the OPEB Plan 38
Note 10: Deferred Compensation Plan 38
Note 11: Interfund Transactions 39
Note 12: Joint Ventures, Jointly Governed Organizations and Operating Agreements 40
Whale Rock Commission 40
San Luis Obispo Regional Transit Authority 41
San Luis Obispo Council of Governments 41
Nacimiento Water Supply Project 41
Note 13: Risk Management 42
California Joint Powers Insurance Authority 42
Self-Insurance Programs of the Authority 43
Adequacy of Protection 43
Self-Insurance 43
Note 14: Commitments and Contingencies 44
Litigation 44
Grant Awards 44
Regional Transit Authority Pension Expense 44
Note 15: Construction and Other Significant Commitments 45
Note 16: Fund Balance Deficiency 45
Note 17: New Accounting Standards 45
Accounting Standards Adopted 45
Note 18: Prior Period Adjustments 46
86
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Note 1: Summary of Significant Accounting Policies
The basic financial statements of the City of San Luis Obispo (City) have been prepared in conformity with U.S. Generally Accepted
Accounting Principles (GAAP), as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is
the accepted standard setting body for establishing governmental accounting and financial reporting principles.
The following is a summary of the more significant policies:
Description of the Reporting Entity
The City is a California charter city. It was incorporated on February 19, 1856 and chartered on May 1, 1876. It is organized in
accordance with the Council-Mayor-City Manager form of government. With a population of approximately 48,700, the City
provides a broad range of municipal services, including police and fire protection, parks and recreation, water and sewer utilities,
street maintenance, public transportation, parking, planning, and building and safety.
As required by GAAP, these financial statements present the City (the primary government) and its component units, entities for
which the government is considered to be financially accountable. Blended component units, although legally separate entities, are
in substance part of the government's operations which creates the need to include their financial information with that of the primary
government. The City has no component units that require discrete presentation in accordance with GASB standards.
Blended Component Unit. The City has identified The San Luis Obispo Capital Improvement Board (the Board) and the San Luis
Obispo Public Financing Authority (the Authority) as blended component units in accordance with GASB standards. Both provide
financing for the construction and acquisition of City facilities and consist of members of the City Council. Activities of both units
are accounted for in the applicable City governmental funds and consist of the issuance of debt secured by the lease of property.
Separate financial statements are not prepared for the San Luis Obispo Capital Improvement Board or San Luis Obispo Public
Financing Authority.
Government-wide and Fund Financial Statements
The government-wide financial statements (i.e. the statement of net position and the statement of activities) report information on
all of the non-fiduciary activities of the primary government and its component unit. Governmental activities, which normally are
supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely primarily on
fees and charges for services.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program
revenues. Direct expenses are those that are clearly identifiable within a specific function or segment. The indirect expense allocation
transfers general support services to operating programs based on the most current Cost Allocation Plan. Program revenues include
1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given
function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general
revenues.
Separate fund financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the
latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual
enterprise funds are reported as separate columns in the fund financial statements.
Measurement Focus, Basis of Accounting and Basis of Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of
accounting, as are the proprietary funds and fiduciary funds. Revenues are recorded when earned and expenses are recorded when a
liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which
they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider
have been met.
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City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 2
Note 1: Summary of Significant Accounting Policies (Continued)
As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to
this general rule are charges between the government’s enterprise funds and various other functions of the government. Elimination
of these charges would distort the direct costs and program revenues reported for the various functions concerned.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified
accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered
to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period.
For this purpose, the government generally considers revenues to be available if they are collected within 60 days of the end of the
current fiscal period. An exception to this timeframe is made to allow for the recognition of the final property tax distributions
received from the County, if necessary, as well as for sales tax revenues received in September. This later provision is made in order
for the City’s revenue stream to match that recognized by the State of California. Expenditures generally are recorded when a liability
is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated
absences and claims and judgments, are recorded only when payment is due.
Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be
susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered
to be measurable and available only when cash is received by the government.
Major Funds and Other Funds. GASB Standards define major funds and require that the City’s major governmental funds be
identified and presented separately in the fund financial statements. All other funds, called non-major funds, are combined and
reported in a single column, regardless of their fund type.
Major funds are defined as funds that have assets, liabilities, revenues, or expenditures/expenses equal to ten percent of their fund-
type total and at least five percent of the grand total. The General Fund is always a major fund. The City may also select other funds
it believes should be presented as major funds.
The City reports the following major governmental funds:
General Fund. This fund is the government’s primary operating fund. It accounts for all financial resources of the general
government, except those required to be accounted for in another fund.
Capital Outlay Fund. This fund was established to account for all of the City’s construction projects and capital purchases in excess
of $25,000 with the exception of those funded through non-major capital project funds and Enterprise Funds. Financing is provided
primarily through transfers in from the General Fund, and from State and Federal Grants.
The only proprietary funds the City reports are the Enterprise Funds, all of which are major funds. Proprietary funds are accounted
for on the economic resources measurement focus and the accrual basis of accounting. Under this method, revenues are recorded
when earned and expenses are recorded at the time liabilities are incurred. The City reports the following major enterprise funds:
Water Fund. This fund accounts for the provision of water services to the residents of the City as well as some customers in the
County. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration,
operations, maintenance, capital improvements and debt service.
Sewer Fund. This accounts for the provision of wastewater collection and treatment services to the residents of the City as well as
some customers in the County. All activities necessary to provide such services are accounted for in this fund, including, but not
limited to, administration, operations, maintenance, capital improvements and debt service.
Parking Fund. This fund accounts for activities related to the implementation of the Access and Parking Management Plan,
including the operation of municipal parking lots, parking structures, parking meters and residential parking districts. All activities
necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations,
maintenance, capital improvements and debt service.
88
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 3
Note 1: Summary of Significant Accounting Policies (Continued)
Transit Fund. This fund accounts for the operation and maintenance of the City's transit system. Although user fees are not the
primary funding source for the operation of the system, the State of California and the Federal government, which provide the major
funding sources for the system, require that local transit systems be accounted for on an enterprise fund basis.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally
result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing
operations. The principal operating revenues of the enterprise funds are charges to customers for sales and services. Operating
expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
The City has established eight Custodial Funds, which are used to account for funds held by the City as an agent for Whale Rock
Commission, Jack House Committee, County Task Force, individual donations, Boysen Ranch, San Luis Ranch Community
Facilities District and San Luis Coastal Unified School District and San Luis Obispo County Public Access, Inc. Public Access
Television. Custodial funds are accounted for using the accrual basis of accounting. See supplementary information for a complete
list of Custodial Funds.
Assets, Liabilities, and Net Position or Fund Balance
Cash, Cash Equivalents and Investments. The City pools cash resources of its various funds to facilitate cash management. Cash
in excess of current requirements is invested and reported as investments. It is the City’s intent to hold investments until maturity.
However, the City may, in response to market conditions, sell investments prior to maturity in order to improve the quality, liquidity
or yield of the portfolio.
The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original
maturities of three months or less from the date of acquisition. Cash and investments held by fiscal agents are treated as cash
equivalents for purposes of the statement of cash flows.
Money markets and non-negotiable certificates of deposit are reported at amortized cost. All other investments are stated at fair
value.
Receivables and Payables. Activity between funds that are representative of lending/borrowing arrangements outstanding at the end
of the fiscal year are referred to as “due to/from other funds”.
All receivables are shown net of any allowance for uncollectible accounts if material. Charges for utility services rendered but
unbilled as of June 30 are accrued and are recognized as revenues.
Prepaids and Inventories. The City has no significant inventories. The cost of any inventoriable item has been recorded as an
expenditure or expense at the time of purchase. Certain payments to vendors reflect costs applicable to future accounting periods
and are recorded as prepaid items in both government-wide and fund financial statements. Prepayments in the governmental funds
are accounted for using the consumption method.
Restricted Assets. Certain proceeds of debt financings, as well as resources set aside for their repayment, are classified as restricted
assets on the balance sheet because they are maintained in separate trust bank accounts and their use is limited by applicable debt
covenants. Notes 2 and 5 have additional information on funds held by fiscal agents.
89
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 4
Note 1: Summary of Significant Accounting Policies (Continued)
Capital Assets. Capital assets, which include property, plant, equipment and infrastructure assets (such as streets, sidewalks and
bridges), are reported in the applicable governmental or business-type activities columns in the government-wide financial
statements, and in the proprietary funds statement of net position. Capital assets are defined by the City as assets with an initial,
individual cost of more than $25,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or
estimated historical cost if purchased or constructed. Donated capital assets, donated works of art and similar items, and capital
assets received in a service concession arrangement would be reported at acquisition value rather than fair value. The costs of normal
maintenance and repairs that do not add to the value of assets or materially extend assets’ lives are not capitalized. Major outlays for
capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital
assets of the business- type activities is included as part of the capitalized value of the assets constructed. Detailed information on
the City’s capital assets can be found in Note 4.
Property, plant and equipment of the City are depreciated using the straight line method over the following estimated useful lives:
Deferred Outflows and Inflows of Resources. The City recognizes deferred outflows and inflows of resources in the Statement of
Net Position. A deferred outflow of resources is defined as a consumption of net assets by the City that is applicable to a future
reporting period. The City has deferred outflows of resources related to pensions, other post-employment benefits (OPEB), and
unamortized loss on refunding of debt. A deferred inflow of resources is defined as an acquisition of net assets by the City that is
applicable to a future reporting period. The City has deferred inflows of resources related to pensions and OPEB.
Compensated Absences. City employees are granted vacation and sick leave in varying amounts. In the event of termination,
employees are reimbursed for the total value of their accumulated vacation days. Employees are reimbursed for 10% to 30% of the
accumulated sick leave only upon retirement and only after at least 10 years of service. In selected cases, similar accumulated sick
leave reimbursements may be available after 20 years of continuous employment. An employee's estate is reimbursed for 30% of
the employee's accumulated sick leave in the event of death while in the City's employ. A liability for compensated absences is
accrued in the government-wide and proprietary funds financial statements.
Long-Term Obligations. In the government-wide financial statements, and proprietary funds in the fund financial statements, long-
term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities,
or proprietary funds statement of net position. Bond premiums and discounts and deferred amounts on refunding are deferred and
amortized over the life of the bonds. Deferred amounts on refunding are reported separately from assets and liabilities in the
Statement of Net Position. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are
expensed as incurred.
In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during
the period they originate. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances
are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether
or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
Assets Years
Infrastructure 20-100
Buildings and structures 20-50
Improvements other than buildings 10-100
Equipment 3-21
90
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 5
Note 1: Summary of Significant Accounting Policies (Continued)
Net Pension Liability. The City recognizes a net pension liability, which represents the excess of the total pension liability over the
fiduciary net position of the pension reflected in the actuarial reports provided by the California Public Employees’ Retirement
System (CalPERS) plans (Plans). The net pension liability is measured as of the City’s prior fiscal year-end. Changes in the net
pension liability are recorded, in the period incurred, as pension expense or as deferred inflows of resources or deferred outflows of
resources depending on the nature of the change. The changes in the net pension liability that are recorded as deferred inflows of
resources or deferred outflows of resources (that arise from changes in actuarial assumptions or other inputs and differences between
expected or actual experience) are amortized over the weighted average remaining service life of all participants in the respective
pension plan and are recorded as a component of pension expense beginning with the period in which they are incurred.
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension
expense, information about the fiduciary net position of the City’s CalPERS Plans and additions to/deductions from the Plans’
fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments
(including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value. Projected earnings on pension investments are recognized as a component of pension expense
General fund is the governmental fund used to liquidate the pension liabilities of the governmental activities.
Other Post-Employment Benefits (OPEB) Liability. For purposes of measuring net OPEB liability, deferred outflows of resources
and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s
plan (OPEB Plan), and additions to or deductions from the OPEB Plan’s fiduciary net position, have been determined on the same
basis as they are reported by the California Employer’s Retiree Benefit Trust Program (CERBT). For this purpose, benefit payments
(including refunds of employee contributions) are recognized when currently due and payable in accordance with benefit terms.
Investments are reported at fair value. General fund is the governmental fund used to liquidate the OPEB liabilities of the
governmental activities.
Generally accepted accounting principles require that the reported OPEB results must pertain to liability and asset information within
certain defined timeframes. For this report, the following timeframes are used:
Valuation Date June 30, 2023
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
Fund Equity. In the fund financial statements, fund balance for governmental funds is reported in classifications that comprise a
hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purpose for which amounts
in the funds can be spent. Fund balance is reported in five components in accordance with GASB Statement No. 54 Fund Balance
Reporting and Governmental Fund Type Definitions – nonspendable, restricted, committed, assigned and unassigned. The City
Council may take action via minute order to add, delete or amend a fund balance commitment that is not required as a condition of
a bond covenant or other external, legal requirement.
Nonspendable. This component includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally
or contractually required to be maintained intact.
Restricted. This component consists of amounts that have constraints placed on them either externally by third-parties (creditors,
grantors, contributors, or laws or regulations of other governments) or by law through constitutional provisions or enabling
legislation. Enabling legislation authorizes the City to assess, levy, charge or otherwise mandate payment of resources (from external
resource providers) and includes legally enforceable requirements (compelled by external parties) that those resources be used only
for the specific purposes stipulated in the legislation.
Committed. This component consists of amounts that can only be used for specific purposes pursuant to constraints imposed by
minute order authorized by the City Council. Those committed amounts established by minute order cannot be used for any other
purpose unless the City Council adopts a new minute order so directing. With respect to encumbered amounts, the City may take
steps to cancel the order for goods or services and thereby terminate the obligation.
91
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 6
Note 1: Summary of Significant Accounting Policies (Continued)
Assigned. This component consists of amounts that are constrained by the City’s intent to be used for specific purposes but are
neither restricted nor committed. The City Manager or Director of Finance are authorized by City Council, via formal action at
regular public meetings, to assign amounts to a specific purpose. Constraints imposed on the use of assigned amounts can be removed
with no formal Council actions.
Unassigned. This component is the residual classification for the General Fund and includes all amounts not contained in the other
classifications. Unassigned amounts are technically available for any purpose. The General Fund is the only fund that reports a
positive unassigned fund balance amount. Other governmental funds may report negative unassigned fund balance, which occurs
when a fund has a residual deficit after allocation of fund balance to the nonspendable, restricted, or committed categories.
Fund Balance Spending Practice. The City follows a practice in which restricted, committed, assigned, and unassigned fund
balances are spent when more than one amount is available for a specific purpose. When both restricted and unrestricted resources
are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources (committed, assigned and
unassigned) as they are needed. When unrestricted resources (committed, assigned and unassigned) are available for use, it is the
City’s policy to use committed resources first, then assigned, and then unassigned as they are needed.
Reconciliation of Government-wide and Fund Financial Statements
A reconciliation between total fund balance of the governmental funds and total net position of the governmental activities as reported
in the government-wide statement of net position is presented in the basic financial statements.
A reconciliation between total net change in fund balance of the governmental funds and total change in net position of governmental
activities as reported in the government-wide statement of activities is presented in the basic financial statements.
There are no differences between total net position of the proprietary funds and total net position of the business-type activities as
reported in the government-wide statement of net position.
Budgets and Budgetary Accounting
Overview. The City has received national recognition for its use of a two-year Financial Plan and budgetary process that emphasizes
long-range planning and effective program management. Significant features of the City's two-year Financial Plan include the
integration of Council goal setting into the budgetary process and the extensive use of formal policies and measurable objectives.
The Financial Plan includes operating budgets for two years and a capital improvement plan (CIP) covering five years.
Under this multi-year approach, appropriations continue to be made annually; however, the Financial Plan is the foundation for
preparing the budget for the second year. Additionally, unexpended operating appropriations from the first year may be carried over
for specific purposes into the second year with the approval of the City Manager.
Management Policies. The overall goal of the City's Financial Plan is to link what the City wants to accomplish over the next two
years with the resources required to do so. Formal statements of budgetary policies and major objectives provide the foundation for
achieving this goal. Key budget principles include: maintaining fund balances at levels which will protect the City from future
uncertainties; estimating revenues at realistic levels; making current expenditures with current revenues; maintaining the City's
traditional commitment to a strong General Fund; and complying with provisions of the State constitution, City charter, municipal
code, and sound fiscal policy. Key revenue policies include: maintaining a diversified and stable revenue base; setting enterprise
fund rates at levels that fully recover the total cost of providing services in the Water, Sewer and Parking Funds; and at policy levels
for cost recovery in the Transit Fund; charging fees for General Fund programs in accordance with adopted user fee cost recovery
goals; and ensuring that new development pays its fair share of the cost of constructing necessary community facilities.
92
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 7
Note 1: Summary of Significant Accounting Policies (Continued)
Budget Process. The City Manager is responsible for preparing the budget and submitting it to the Council for approval.
Although specific steps will vary from year to year, the following is an overview of the general approach used under the
City's two-year budgetary process:
First Year. The Financial Plan process begins with City Council goal setting to determine major objectives to be
accomplished over the next two years. As part of this process, community groups, interested individuals, and
Council advisory bodies present their recommendations to the Council. Goals approved by the City Council are
incorporated into the budget instructions issued to the operating departments, who are responsible for submitting
initial budget proposals. After these proposals are comprehensively reviewed and a detailed financial forecast is
prepared, the City Manager issues the Preliminary Financial Plan for public comment. A series of study sessions
and public hearings are then held leading to Council adoption of the Financial Plan and Budget prior to the start
of the fiscal year.
Second Year. Before the beginning of the second year of the two-year cycle, the Council reviews the progress
during the first year, adjusts as necessary and approves appropriations for the second fiscal year. Unspent operating
appropriations from the first year may be carried over for specific purposes into the second year with the approval
of the City Manager. Unspent and unencumbered operating appropriations lapse at the end of the second year. The
fiscal year which ended June 30, 2024 was the first year of the 2023-25 two-year cycle.
Mid-Year Reviews. The Council formally reviews the City's financial condition and amends appropriations, if
necessary, each February.
Status Reports. Financial reports are prepared monthly to monitor the City's fiscal condition; more formal reports
are posted to the City's website on a quarterly basis. Additionally, more focused reports are issued on key revenues,
such as sales tax, transient occupancy tax and quarterly reports on investments. The status of major goals and
program objectives, including Capital Improvement Plan (CIP) projects, are also formally reported to the Council
on an ongoing basis.
Accounting and Budget Administration. Budgets are prepared for each fund in accordance with its respective basis of accounting
consistent with U.S. Generally Accepted Accounting Principles (GAAP). All governmental funds have legally adopted budgets
annually. While budgets are prepared for the City's capital projects funds, the capital projects generally span more than one year and
are effectively controlled at the project level; accordingly, budgetary comparisons are not presented for capital projects funds in the
accompanying other supplementary information following the basic financial statements.
As provided under the City Charter, the Council may amend or supplement the budget at any time after its adoption by majority vote
of the Council members. The legal level of budgetary control – the level at which expenditures are not to exceed appropriations – is
the fund level.
For management control purposes, the City Manager has the authority to make or approve administrative adjustments to the budget
provided those changes will not have a significant policy impact nor affect budgeted year-end fund balances. Department heads have
the authority to transfer line-item budgets within the department within a fund. During fiscal year 2024 several supplemental budget
appropriations were made to reflect the inclusion of costs related to prior year encumbered amounts as well as the rollover of unspent
capital appropriations. Additional appropriations were added to fund a prepayment made to the retirement system as well as to
provide additional resources for the Community Development Department to ensure that it maintained a development review process
that complied with State law considering the increased demand for services. These adjustments were material when compared to the
original appropriations. Both the original and final amended budgets of the General Fund are presented as required supplementary
information following the notes to the financial statements. Budget information for non-major governmental funds with annual
budgets is presented in other supplementary information following the notes to the financial statements.
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City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 8
Note 1: Summary of Significant Accounting Policies (Continued)
Encumbrances. The City uses an encumbrance system as an extension of normal budgetary accounting for the other governmental
funds. Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to
reserve that portion of applicable appropriations. Encumbrances outstanding at year-end are recorded as restricted, committed, or
assigned fund balances since they do not constitute expenditures or liabilities. Unencumbered appropriations lapse at year-end.
Encumbered appropriations are carried forward in the ensuing year’s budget.
Indirect Cost Reimbursement. All of the City's general government and engineering programs are accounted and budgeted for in
the General Fund. However, some of these support service programs also benefit the City's enterprise and custodial fund operations,
and accordingly, payments are made from these funds to reimburse the General Fund for these services. The payments are based on
a Central Service Cost Allocation Plan prepared for this purpose, which distributes these shared costs in a uniform, consistent manner
in accordance with GAAP.
Fair Value Measurements
As defined in GASB Statements, fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The City uses valuation techniques that are appropriate
under the circumstances and for which sufficient data are available to measure fair value. Valuation techniques maximize the use of
relevant observable inputs and minimize the use of unobservable inputs.
GASB Statements establish a hierarchy of inputs to valuation techniques used to measure fair value. That hierarchy has three levels:
Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 — Observable inputs, other than Level 1 prices, for the asset or liability, either directly or indirectly.
Level 3 — Unobservable inputs for the asset or liability.
For fiscal year ended June 30, 2024, the application of valuation techniques applied to the City’s financial statements has been
consistent.
Note 2: Cash and Investments
The City follows the practice of pooling cash and investments for all funds under its direct daily control. Funds held by outside fiscal
agents under provisions of bond indentures are maintained separately.
Interest earned on pooled cash and investments is allocated quarterly to the various funds based on the respective fund's average
quarterly cash balance. Interest earned from cash and investments with fiscal agents is credited directly to such funds.
Funds with Fiscal Agent
The City has monies held by trustees or fiscal agents pledged to the payment or security of certain bonds. The California Government
Code provides that these funds, in the absence of specific statutory provisions governing the issuance of bonds, may be invested in
accordance with the ordinance, resolutions, or indentures specifying the types of investments its trustees or fiscal agents may make.
These ordinances, resolutions, or indentures are generally more restrictive than the City's general investment policy. In no instance
have additional types of investments been authorized which are not permitted by the City's investment policy.
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City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 9
Note 2: Cash and Investments (Continued)
Investments
The City is authorized by its investment policy, in accordance with Section 53601 of the California Government Code, to invest in
the following instruments:
Treasury bills and notes
Government Sponsored Enterprises
Commercial paper
Repurchase agreements
Bankers' acceptances
Corporate medium-term notes
Negotiable certificates of deposit
Collateralized bank deposits
Money market mutual funds
State Local Agency Investment Fund (LAIF)
Investments are stated at fair value, based on quoted market prices, in accordance with GASB standards. Investment income has
been adjusted to reflect any unrealized gains and losses resulting from the fair value adjustment annually. While U.S. generally
accepted accounting principles require recording any increases or decreases in the fair value of the City’s investments, it is the City’s
policy to make all investment decisions based on holding them through maturity, and therefore the City may not realize the gains or
losses resulting from the fair value adjustment. As such, changes in fair value generally do not affect the long-term results of the
portfolio, but they can result in significant fluctuations from year-to-year.
The fair value of the City’s position in the State LAIF pool is the same as the value of the pool shares. The State LAIF pool credit
quality is unrated. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance
with State statute. The State Treasurer’s Office audits the fund annually.
At June 30, 2024, cash and investments consisted of the following:
Fair
Value
Percent of
Portfolio
Cash and cash equivalents 46,981,162$ 15.60%
Investments:
State Local Agency Investment Fund 46,813,858 15.55%
U.S. Treasury Bond / Note 65,488,738 21.75%
Federal Agency Bond / Note 12,305,941 4.09%
Corporate Note 17,740,208 5.89%
Municipal Bond/Note 647,735 0.22%
Bank Note 640,369 0.21%
Asset-Backed Securities 5,886,212 1.95%
Negotiable Certificates of Deposit 1,974,852 0.66%
Non-Negotiable Certificates of Deposit 2,066,197 0.69%
Money Market Funds 100,602,404 33.41%
Total investments 254,166,514 84.40%
Total cash and investments 301,147,676$ 100.00%
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City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 10
Note 2: Cash and Investments (Continued)
At June 30, 2024, cash and investments are reflected in the financial statements as following:
Investment Fair Value Measurements. The City categorizes its fair value measurements within the fair value hierarchy established
by generally accepted accounting principles. Investment securities classified in Level 1 of the fair value hierarchy are valued using
prices quoted in active markets for those securities. Investment securities classified in Level 2 of the fair value hierarchy are valued
using matrix pricing or market corroborated pricing. Matrix pricing is used to value securities based on the securities’ relationship
to benchmark quoted prices.
The following is a summary of the fair value measurements as of June 30, 2024:
Custodial Credit Risk – Deposits with Financial Institutions. The custodial credit risk for deposits is the risk that, in the event of
the failure of a depository financial institution, the City will not be able to recover deposits. Deposits with financial institutions,
including non-negotiable certificates of deposit, totaled $48,992,214 at June 30, 2024 and were insured or collateralized with
securities held by the pledging financial institution's trust department or agent in the City's name.
Governmental
Funds
Business-Type
Funds
Fiduciary
Funds Total
Cash and investments 104,266,788$ 122,089,627$ 36,059,266$ 262,415,681$
Cash and investments held by fiscal agents 8,888 38,723,107 38,731,995
Total cash and investments 104,275,676$ 160,812,734$ 36,059,266$ 301,147,676$
Government-Wide Statement of
Net Position
Fair Value
Investments by fair value hierarchy
U.S. Treasury Bond / Note 65,488,738$ -$ 65,488,738$ -$
Federal Agency Bond / Note 12,305,941 - 12,305,941 -
Corporate Note 17,740,208 - 17,740,208 -
Municipal Bond/Note 647,735 - 647,735 -
Bank Note 640,369 - 640,369 -
Asset-Backed Securities 5,886,212 - 5,886,212 -
Negotiable Certificates of Deposit 1,974,852 - 1,974,852 -
Total investments by fair value hierarchy 104,684,055 -$ 104,684,055$ -$
Investments not subject to fair value hierarchy
State Local Agency Investment Fund 46,813,858
Non-Negotiable Certificates of Deposit 2,066,197
Money Market Funds 100,602,404
Total investments not subject to fair value hierarchy 149,482,459
Total investments measured at fair value 254,166,514$
Fair Value Measurements Using
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservab
le Inputs
(Level 3)
96
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 11
Note 2: Cash and Investments (Continued)
The California Government Code requires California financial institutions to secure the City's deposits by pledging government
securities as collateral. The fair value of the pledged securities must equal 110% of the City's deposits. California law also allows
financial institutions to secure City deposits by pledging first trust deed mortgage notes equal to 150% of the City's deposits or letters
of credit issued by the Federal Home Loan Bank of San Francisco having a value of 105% in excess of the total amount of deposits.
Custodial Credit Risk - Investments. This is the risk that in the event of the failure of a counterparty, the City will not be able to
recover the value of its investments that are in the possession of an outside party. All of the City’s investments in securities are
insured or registered and held by a counterparty in the City’s name in accordance with the City’s policies.
Interest Rate Risk. This is the risk that the fair value of securities in the portfolio will fall due to changes in general interest rates. In
accordance with its policies in the Investment Management Plan, the City mitigates interest rate risk by:
Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby
avoiding the need to sell securities on the open market before maturity.
Investing operating funds primarily in shorter-term securities.
The City’s investment policy also includes portfolio maturity targets. A minimum of 20% of the portfolio will be invested in
securities maturing in one year or less. Up to 80% of the portfolio can be invested in securities with a maturity over one year, with
no more than 10% of the portfolio invested in securities with a maturity over five years.
Maturities using the segmented time distribution method for those investments requiring this disclosure are as follows:
Investments held by fiscal agents are structured with maturity dates that correspond to the payment of final debt service of the
respective bond indenture.
Credit Risk. This is the risk of loss due to the failure of the security issuer or backer. The City’s policies to mitigate credit risk
include:
Limiting investments to the safest types of securities. As noted above, the California Government Code limits the investment
vehicles available to local agencies. The credit risk of these securities is measured by the assignment of a rating by a
nationally recognized statistical rating organization. The table below presents the rating for each investment type as
provided by Standard & Poor’s except as noted.
Pre-qualifying the financial institutions, broker/dealers, intermediaries and advisors with which the City will do business.
Fair Value
Less Than One
Month
One Month to One
Year One to Five Years
Over Five
Years
State Local Agency Investment Fund 46,813,858$ -$ 46,813,858$ -$ -$
U.S. Treasury Bond / Note 65,488,738 - 8,194,202 57,294,536 -
Federal Agency Bond / Note 12,305,941 - 4,336,067 7,969,874 -
Corporate Note 17,740,208 - 3,075,652 14,664,556 -
Municipal Bond/Note 647,735 - 445,452 202,283 -
Bank Note 640,369 - - 640,369 -
Asset-Backed Securities 5,886,212 - - 5,886,212 -
Negotiable Certificates of Deposit 1,974,852 - 978,568 996,284 -
Non-Negotiable Certificates of Deposit 2,066,197 - 2,066,197 - -
Money Market Funds 100,602,404 100,602,404 - - -
Total maturities 254,166,514$ 100,602,404$ 65,909,996$ 87,654,114$ -$
Cash in banks and on hand 46,981,162
301,147,676$
97
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 12
Note 2: Cash and Investments (Continued)
The following table identifies the Standard & Poor’s credit quality ratings for those investments requiring this disclosure as of June
30, 2024:
Concentration Credit Risk. The City’s policies contained in the Investment Policy and Management Plan provide guidelines (by
type of investment that limits either the dollar amount, the percent of the portfolio or the maturity term) for diversifying the
investment portfolio so that potential losses on individual securities will be minimized.
The City’s Investment Management Plan outlines the following criteria related to portfolio diversification:
No more than 5% of the City’s portfolio (exclusive of government agency issues or LAIF) shall be placed with any financial
institution.
No more than 25% of the City’s portfolio shall be invested in collateralized certificates of deposit issued by financial
institutions.
Certificates of deposit (negotiable and collateralized) placed by the City shall not constitute more than 15% of the total
assets of the institution; and negotiable certificates of deposit will only be placed with institutions with total assets in excess
of $200 million and that maintain a ratio of equity to total assets of at least 5%.
Foreign Currency Risk. The City does not hold any investment that is based on foreign currency exchange rates.
Type of Investment Rating Total
Federal Agency Bonds / Notes AA+12,305,941$
Corporate Notes AAA 1,583,592
AA 1,349,264
AA-2,732,476
A+5,743,020
A 3,672,231
A-2,659,625
Total Corporate Notes 17,740,208
Municipal Bond/Note AAA 209,147
AA 236,305
AA-202,283
Bank Note A 640,369
Asset-Backed Securities AAA 4,738,222
NR 1,147,990
Negotiable Certificates of Deposit A 978,568
A+996,284
Not Applicable:
U.S. Treasury Bonds / Notes 65,488,738
Not Rated:
State Local Agency Investment Fund 46,813,858
Non-Negotiable Certificates of Deposit 2,066,197
Money Market Mutual Funds 100,602,404
Total Investments 254,166,514$
98
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 13
Note 3: Property Taxes
Property taxes in the State of California (State) are administered for all local agencies at the county level, and consist of secured,
unsecured and utility tax rolls. The following is a summary of major policies and practices relating to property taxes:
Property Valuation. Valuations are established by the Assessor of the County of San Luis Obispo (County) for the secured
and unsecured property tax rolls; the utility property tax roll is valued by the State Board of Equalization. Under the
provisions of Article XIIIA of the State Constitution (Proposition 13 adopted by the voters on June 6, 1978), properties are
assessed at 100% of full value. Proposition 13 also modified the value of taxable real property for fiscal 1979 by rolling
back values to fiscal 1976 levels. From this base of assessment, subsequent annual increases in valuation are limited to a
maximum of 2%. However, increases to full value are allowed for property improvements or upon change in ownership.
Personal property is excluded from these limitations and is subject to annual reappraisal.
Tax Levies. Under the provisions of Proposition 13, the countywide tax levy for general revenue purposes is limited to 1%
of full market value, which results in a tax rate of $1.00 per $100 assessed valuation. Tax rates for voter approved
indebtedness are excluded from this limitation.
Tax Levy Dates. All lien dates attach annually on January 1 preceding the fiscal year for which the taxes are levied. The
fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on both real and unsecured personal
property as it exists at that time. The lien against real estate as well as the tax on personal property is not relieved by
subsequent renewal or change in ownership.
Tax Collections. The County Treasurer/Tax Collector is responsible for all property tax collections. Taxes and assessments
on the secured and utility rolls, which constitute a lien against the property, may be paid in two installments: the first
installment is due on November 1 of the fiscal year and is delinquent if not paid by December 10; and the second installment
is due on March 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not
constitute a lien against real property. However, if the taxes become delinquent the lien is attached against anything the
individual owns, which could include real property. Payment must be made in one installment, which is delinquent if not
paid by August 31 of the fiscal year. Significant penalties are imposed by the County for late payments.
Teeter Plan. In 1993-94 the City elected to receive property tax revenue in accordance with the alternative method of
distribution prescribed by Sections 4701-4717 of the California Revenue and Taxation Code, which is commonly known
as the “Teeter Plan” whereby the County remits 100% of taxes levied without regard to delinquencies. The County then
pursues collection, retaining any delinquent taxes and related penalties and interest.
Tax Levy Apportionments. Due to the nature of the countywide maximum levy, it is not possible to identify general purpose
tax rates for specific entities. Under State legislation adopted after the passage of Proposition 13, apportionments to local
agencies are made by the County Auditor Controller based primarily on two factors: the ratio that each agency represented
of the total County wide levy for the three years prior to fiscal 1979; and subsequent adjustments to these apportionments
and transfers to the “Educational Revenue Augmentation Fund” (ERAF) as determined by the State.
City Property Tax Distribution Policy. Property taxes are recorded in the General Fund as general-purpose revenue.
Transfers are made from the General Fund as needed to support expenditures in the Capital Outlay, Open Space Protection,
Fleet Replacement, Information Technology Replacement, Major Facility Replacement and Debt Service Funds. Property
taxes receivable at June 30, 2024 have been accrued since they will be collected within 60 days subsequent to year-end.
99
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 14
Note 4: Loan Receivable
Loans receivable, including accrued interest comprised balances from the following programs, all of which are discussed on the
following pages.
A. Affordable Housing Loans - The City’s Affordable Housing Fund provides grants and loans to certain development
projects that meet the City’s affordability criteria. As of June 30, 2024, the Fund has 17 loans for affordable housing
developments with interest rates ranging from 0% to 4% and repayment terms of 30 to 57 years. These loans had a
remaining principal balance of $9.2 million; 4 loans for $669,063 are forgivable if certain criteria are met netting $8.6
million in loans. The Fund has secured more than 450 affordable housing units for City residents.
B. BEGIN Homeownership Loan - The City has provided deferred payment loans utilizing funding from the State of
California under the BEGIN program. On June 30, 2024, the Fund had two outstanding loans utilizing this program with a
principal balance of $130,000. These loans are provided for a term of 30 years with an annual interest rate of 3%.
C. Down Payment Assistance - The Fund has provided down payment assistance loans to individuals purchasing affordable
housing units. As of June 30, 2024, the Affordable Housing Fund had seven outstanding down payment assistance loans
with a principal balance of $360,335. These loans are provided for a term of 30 years with an annual interest rate of 3%.
D. Impact Fee Deferral Loan – The City has provided certain affordable housing developments with loans equal to the
amount of certain impact fees. These loans are reflected in the respective impact fee funds. As of June 30, 2024, the total
principal outstanding was $5,004,148. These loans are provided for a term of 55 years with an annual interest rate of 3%.
E. Community Development Block Grant (CDBG) Fund Loans – The City has provided loans from the City’s allocation
of CDBG funding for certain affordable housing developments. As of June 30, 2024, the CDBG Fund had $1,556,161
principal outstanding on the loans with $443,217 forgivable if certain conditions are met. The loans have terms of 30 years
and annual interest rates of 3% to 4%.
Note 5: Capital Assets
GASB standards require that the City report in the government-wide statements the value of all capital assets net of accumulated
depreciation, including infrastructure assets, in accordance with GAAP. Infrastructure assets are defined as long-lived capital assets
that are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets.
Total Balance
Description Loan Receivable Interest Receivable June 30, 2024
Governmental Funds:
Affordable Housing Loan 8,560,688$ 2,589,658$ 11,150,346$
BEGIN Homeownership Loan 60,000 56,575 116,575
Down Payment Assistance 360,335 86,845 447,180
CDBG 1,112,944 755,113 1,868,057
Impact Fee Loan 2,729,061 369,580 3,098,641
Total governmental funds 12,823,028 3,857,771 16,680,799
Enterprise Funds:
Impact Fee Loan 2,275,087 387,988 2,663,075
Total enterprise funds 2,275,087 387,988 2,663,075
Total Primary Government 15,098,115$ 4,245,759$ 19,343,874$
100
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 15
Note 5: Capital Assets (Continued)
The minimum requirement for compliance with GASB standards is to provide infrastructure valuations for all assets constructed,
acquired, or placed into service on or after July 1, 1980. Relevant assets for the City were valued at one of two dates: 1) the original
date of construction, if available, or 2) the incorporation date of the City. Each asset was reviewed to determine the adequacy of the
data to value the asset prior to July 1, 1980 using historical cost or estimated historical cost.
Capital assets activity for the fiscal year ended June 30, 2024 was as follows:
Balance Balance
June 30, 2023 Additions Deletions Transfers June 30, 2024
Governmental activities:
Capital assets not being depreciated:
Land 32,263,736$ -$ -$ 2,000,000$ 34,263,736$
Construction in progress 17,168,915 34,530,226 (5,328,458) (16,620,509) 29,750,174
Public art 646,630 - - - 646,630
Total capital assets not
being depreciated 50,079,281 34,530,226 (5,328,458) (14,620,509) 64,660,540
Capital assets being depreciated:
Infrastructure 212,068,622 - - 2,820,666 214,889,288
Accumulated Depreciation (78,725,467) (4,475,744) - 908,043 (82,293,168)
Buildings and improvements 49,594,783 - - 9,564,635 59,159,418
Accumulated Depreciation (23,571,208) (831,989) - (934,884) (25,338,081)
Equipment 34,510,422 - (739,587) 2,235,208 36,006,043
Accumulated Depreciation (20,961,412) (2,092,401) 741,597 26,841 (22,285,375)
Capital assets being amortized:
Right of use - Lease asset 736,731 - - - 736,731
Accumulated Amortization (189,951) (152,402) - - (342,353)
Subscription based I.T. agreeements 646,823 250,801 - - 897,624
Accumulated Amortization (207,043) (300,487) - - (507,530)
Total capital assets being
depreciated/amortized, net 173,902,300 (7,602,222) 2,010 14,620,509 180,922,597
Governmental activities,
capital assets, net 223,981,581$ 26,928,004$ (5,326,448)$ -$ 245,583,137$
Busine ss-type activities:
Capital assets not being depreciated:
Land 9,069,495$ -$ -$ 4,745,383$ 13,814,878$
Construction in progress 145,804,083 45,675,572 (644,675) (8,847,195) 181,987,785
Total capital assets not
being depreciated 154,873,578 45,675,572 (644,675) (4,101,812) 195,802,663
Capital assets being depreciated:
Infrastructure 244,420,943 - - 1,545,002 245,965,945
Accumulated Depreciation (113,156,049) (5,159,875) - 391,637 (117,924,287)
Buildings and improvements 30,527,376 - - - 30,527,376
Accumulated Depreciation (16,560,724) (592,430) - (5,152) (17,158,306)
Equipment 23,923,177 - (201,300) 2,556,810 26,278,687
Accumulated Depreciation (16,146,945) (1,456,253) 206,241 (386,485) (17,783,442)
Capital assets being amortized:
Subscription based I.T. agreeemnts 76,996 30 - - 77,026
Accumulated Amortization (25,666) (25,677) - - (51,343)
Total capital assets being
depreciated, net 153,059,108 (7,234,205) 4,941 4,101,812 149,931,656
Business-type activities,
capital assets, net 307,932,686 38,441,367 (639,734) - 345,734,319
Total Government-wide 531,914,267$ 65,369,371$ (5,966,182)$ -$ 591,317,456$
101
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 16
Note 5: Capital Assets (Continued)
Depreciation and amortization expense was charged to functions/programs as follows:
Note 6: Leases
Pursuant to GASB 87, the City has the following lease receivables:
James Town
On 11/5/2013, the City entered into a lease with James Town Premier SL Retail, L.P. or commercial retail space located at the Marsh
Street parking structure. Under the lease, the lessee pays the City $11,310 per month from 2/1/2014 – 1/31/2015 and with 3% increase
each year from 2/1/2015 – 1/31/2024. City renewed the lease for 5 years. The lease receivable is measured as the present value of
the future minimum rent payments expected to be received during the lease term at a discount rate of 3.99%, which was the 5-year
US Treasury rate in effect when the lease was entered into. In fiscal year 2024, the City recognized $133,858 of lease revenue and
$23,204 of interest revenue under the lease.
Crown Castle
On 9/19/2017, the City entered into a lease with Crown Castle NG West LLC to utilize City utility poles for communications
equipment. Under the lease, the initial annual pole fee shall consist of $1,000 for each city pole which Crown Castle’s facilities are
to be installed pursuant to this agreement and is payable to city upon execution and delivery of this agreement and prior to Crown
Castle installing any portion of the network or any facilities. The term ends on 9/1/2047 with 3% increase annually. The lease
receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a
discount rate of 3.5%, which was the 5-year US Treasury rate in effect when the lease was entered into. In fiscal year 2024, the City
recognized $6,491 of lease revenue and $5,712 of interest revenue under the lease.
Garden Street
On 8/1/2015, the City entered into a lease with Garden Street SLO Partners, L.P for the right to use land formerly a surface parking
lot in order to build a hotel. Under the lease, the lessee pays the City $171,600 or the “Base Annual Rent Floor”, which is the amount
of Landlord’s annual net revenue from the operation of Parking Lot 2 on the premises in the period of twelve months ended on the
last day of the last full calendar month ended two months prior to the rent commencement date. The amount of base rent shall be
increased as of the first day of each rent adjustment period commencing with the rent adjustment period that begins on the first day
of the third lease year and on the first day of each subsequent rent adjustment period. The lease receivable is measured as the present
value of the future minimum rent payments expected to be received during the lease term at a discount rate of 1%, which is the 5-
year US Treasury rate in effect when the lease was entered into. In fiscal year 2024, the City recognized $391,827 of lease revenue
and $367,087 of interest revenue under the lease.
Governmental activities:
Public safety 599,411$
Transportation 2,819,451
Culture and recreation 273,805
Community development 125,802
General government 4,034,554
Total depreciation - governmental activities 7,853,023
Business-type activities:
Water 3,340,219
Sewer 2,773,962
Parking 683,564
Transit 436,460
Total depreciation - business-type activities 7,234,205
Total Government-wide 15,087,228$
102
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 17
Note 6: Leases (Continued)
Laguna AT&T
On 9/16/2009, the City entered into a lease with New Cingular Wireless PCS, LLC to locate a cellular communication site at the
Laguna Lake Golf Course. Under the lease, the lessee pays the City $26,000 annually and thereafter, be multiplied by the CPI
Adjuster or 3%, whichever is greater that ends on 9/30/2029. The lease receivable is measured as the present value of the future
minimum rent payments expected to be received during the lease term at a discount rate of 2%, which is the 5-year US Treasury rate
in effect when the lease was entered into. In fiscal year 2024, the City recognized $43,195 of lease revenue and $5,721 of interest
revenue under the lease.
Laguna SBA
On 2/1/2005, the City entered into a lease with SBA 2012 TC Assets, LLC to locate a cellular communication site at the Laguna
Lake Golf Course. Under the lease, the lessee pays the City $25,000 annually and thereafter, be multiplied by the CPI Adjuster or
3%, whichever is greater, that ends in 2025. The lease receivable is measured as the present value of the future minimum rent
payments expected to be received during the lease term at a discount rate of 3%, which is the 5-year US Treasury rate in effect when
the lease was entered into. In fiscal year 2024, the City recognized $37,074 of lease revenue and $1,408 of interest revenue under
the lease.
Santa Rosa St
On 5/13/2011, the City entered into a lease with New Cingular Wireless PCS, LLC to locate a cellular communication site at the
Santa Rosa Park. Under the lease, the lessee pays the City $26,000 annually and thereafter, be multiplied by the CPI Adjuster or 3%,
whichever is greater, that ends on 5/13/2031. The lease receivable is measured as the present value of the future minimum rent
payments expected to be received during the lease term at a discount rate of 2%, which is the 5-year US Treasury rate in effect when
the lease was entered into. In fiscal year 2024, the City recognized $73,350 of lease revenue and $12,127 of interest revenue under
the lease.
The future revenue payments as of June 30, 2024 are as follows:
Year Ending
June 30, Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest
2025 1,718$ 5,661$ -$ 368,219$ 36,843$ 5,023$ 66,063$ 10,876$ 114,642$ 19,008$ 219,266$ 408,787$
2026 2,000 5,601 - 369,364 38,836 4,286 69,693 9,555 122,794 14,866 233,323 403,672
2027 2,298 5,531 - 370,367 40,906 3,509 73,464 8,161 131,357 10,432 248,025 398,000
2028 2,613 5,451 - 371,380 43,057 2,691 77,382 6,692 140,351 5,692 263,403 391,906
2029 2,946 5,360 - 372,403 45,291 1,830 81,452 5,144 85,662 1,002 215,351 385,739
2030-2034 20,425 24,992 - 1,874,759 46,196 924 175,746 5,316 - - 242,367 1,905,991
2035-2039 32,001 20,650 - 1,891,797 - - - - - - 32,001 1,912,447
2040-2044 46,983 14,051 843 1,901,628 - - - - - - 47,826 1,915,679
2045-2049 50,766 4,568 71,232 1,903,040 - - - - - - 121,998 1,907,608
2050-2054 - - 289,803 1,894,939 - - - - - - 289,803 1,894,939
2055-2059 - - 515,885 1,875,616 - - - - - - 515,885 1,875,616
2060-2064 - - 773,372 1,843,370 - - - - - - 773,372 1,843,370
2065-2069 - - 1,100,458 1,796,651 - - - - - - 1,100,458 1,796,651
2070-2074 - - 1,439,358 1,733,086 - - - - - - 1,439,358 1,733,086
2075-2079 - - 1,822,140 1,650,303 - - - - - - 1,822,140 1,650,303
2080-2084 - - 2,300,009 1,546,131 - - - - - - 2,300,009 1,546,131
2085-2089 - - 2,795,737 1,417,290 - - - - - - 2,795,737 1,417,290
2090-2094 - - 3,352,341 1,260,499 - - - - - - 3,352,341 1,260,499
2095-2099 - - 4,038,457 1,072,737 - - - - - - 4,038,457 1,072,737
2100-2104 - - 4,750,848 849,496 - - - - - - 4,750,848 849,496
2105-2109 - - 5,547,206 586,258 - - - - - - 5,547,206 586,258
2110-2114 - - 6,519,506 278,850 - - - - - - 6,519,506 278,850
2115 - - 1,504,755 14,434 - - - - - - 1,504,755 14,434
Total 161,750$ 91,865$ 36,821,950$ 27,242,617$ 251,129$ 18,263$ 543,800$ 45,744$ 594,806$ 51,000$ 38,373,435$ 27,449,489$
TotalCrown Castle Garden St Laguna ATT Santa Rosa St Marsh St
103
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 18
Note 7: Long Term Debt
Summary of Long-Term Debt
The following is a summary of the City's long-term debt transactions for the year ended June 30, 2024:
Compensated absences in the governmental funds are generally liquidated by the General Fund on a pay as you go basis. For detail
of estimated claims and liabilities, see Note 11.
The San Luis Obispo Capital Improvement Board (Board) and the San Luis Obispo Public Financing Authority (Authority) have
entered into a number of lease agreements with the City of San Luis Obispo wherein the City is obligated to make all debt service
payments. The transactions between the Board/Authority have been eliminated from these financial statements.
Balance Balance Due Within
June 30, 2023 Additions Deductions June 30, 2024 One Year
Governmental activities:
2012 Lease revenue refunding bonds 2,415,000$ -$ (2,415,000)$ -$ -$
2014 Lease revenue bonds 6,275,000 - (190,000) 6,085,000 200,000
2018 Lease revenue refunding bonds 8,089,250 - (596,050) 7,493,200 618,975
2023 Lease revenue refunding bonds - 1,920,000 - 1,920,000 38,548
Add: Unamortized bond premium 1,050,308 205,408 (193,421) 1,062,295 -
Total revenue bonds 17,829,558 205,408 (3,394,471) 16,560,495 857,523
Lease liability 570,922 (141,751) 429,171 152,725
Subscription based I.T. agreeemnts 407,465 133,646 (219,762) 321,349 226,808
Lease-purchase financing 36,245 (36,245) - -
Conservation Loan 46,887 - (46,887) - -
Total long-term debt,
governmental activities 18,891,077$ 339,054$ (3,839,116)$ 17,311,015$ 1,237,056$
Compensated absences 3,350,586$ 5,667,276$ (4,567,914)$ 4,449,948$ 3,114,901$
Business-type activities:
2018 Lease revenue refunding bonds 4,260,750$ -$ (313,950)$ 3,946,800$ 326,025$
2018 Water revenue refunding bonds 7,860,000 - (495,000) 7,365,000 520,000
2023 Lease revenue refunding bonds - 43,860,000 - 43,860,000 881,452
Add: Unamortized bond premium 1,675,074 3,567,490 (276,852) 4,965,712 -
Total revenue bonds 13,795,824 47,427,490 (1,085,802) 60,137,512 1,727,477
Subscription based I.T. agreeemnts 50,596 - (24,959) 25,637 25,668
Loans 120,213,508 19,097,239 (1,246,644) 138,064,103 4,192,423
Installment sale agreements 3,575,863 - (706,312) 2,869,551 541,575
Total long-term debt,
business-type activities 137,635,791 66,524,729 (3,063,717) 201,096,803 6,487,143
Compensated absences 661,951 1,243,564 (989,538) 915,977 641,184
Total Government-wide 160,539,405$ 73,774,623$ (12,460,285)$ 223,773,743$ 11,480,284$
104
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 19
Note 7: Long Term Debt (Continued)
Governmental Activities Summary:
Revenue Bonds
2012 Refunding Lease Revenue Bonds. In 2012, the Board issued refunding lease revenue bonds in the amount of $5,050,000 to
refinance the outstanding 2001 lease revenue bonds, Series C. The purpose of these bonds was to purchase property and build athletic
fields, purchase property for police station expansion, and purchase Downtown Plan properties. The bonds bear interest from 2.0%
to 4.0% and are due in annual installments on December 1 through December 1, 2029 that range from $210,000 to $390,000. At
June 30, 2024, the principal amount outstanding on the bonds was $0. The bond indenture agreement specifies reserve requirements
equal to the maximum debt service in any particular year to be held in the Trustee’s reserve funds. The reserve requirement has been
met for the year ended June 30, 2024.
In the Statement of Net Position, the 2012 bonds include the related unamortized premium which is being amortized and charged to
expense over the term of the 2012 bonds. At June 30, 2024, the unamortized premium was $0.
2014 Lease Revenue Bonds. In 2014, the Authority issued lease revenue bonds in the amount of $7,580,000 to finance the expansion
of the Los Osos Valley Road interchange at U.S. 101. The bonds bear interest from 3.00% to 4.00% and are due in annual installments
on November 1 through November 1, 2044 that range from $145,000 to $410,000. At June 30, 2024, the principal amount outstanding
on the bonds was $6,085,000.
In the Statement of Net Position, the 2014 bonds include the related unamortized premium which is being amortized and charged to
expense over the term of the 2014 bonds. At June 30, 2024, the unamortized premium was $165,717.
2018 Lease Revenue Refunding Bonds. In 2018, the Authority issued lease revenue bonds in the amount of $16,905,000 to advance
refund the outstanding 2005 revenue refunding bonds and the 2006 and 2009 lease revenue bonds, which were originally issued to
construct several high priority capital improvement projects and to finance the costs of acquisition and construction of public parking
facilities, and the public safety communications and emergency operations center project. Of the original bond issuance, $11,072,775
was used for financing governmental activities related to the original bonds and the remainder was used for business-type activities.
The bonds bear interest from 3.00% to 5.00% and are due in annual installments on June 1, through June 1, 2039 that range from
$255,000 to $1,250,000. At June 30, 2024, the principal amount outstanding that pertains to governmental activities was $7,493,200
of the total $11,440,000 outstanding.
In the Statement of Net Position, the 2018 bonds include the related unamortized premium which is being amortized and charged to
expense over the term of the 2018 bonds. At June 30, 2024, the unamortized premium for governmental activities was $757,680.
The refunding resulted in a difference of $374,404 between the reacquisition price and the net carrying value of the old debt and is
being amortized to expense through 2039. The City completed the refunding to reduce its total debt service payments over the
following 21 years by $3,838,338 and to obtain an economic gain of $2,960,278 (difference between the present values of the old
and the new debt service payments).
2023 Lease Revenue Refunding Bonds. On September 13, 2023, the San Luis Obispo Public Financing Authority issued
$45,780,000 in Lease Revenue Bonds with premium of $3,707,639 for the construction of the Cultural Arts District Parking Structure
and to refund the 2012 Lease Revenue Bonds. Debt service payments of approximately $2.8 million per year are expected to be
paid from revenues generated by the City’s Parking Fund through December 2053. Of the original bond issuance, $1,920,000 was
used for financing governmental activities related to the original bonds and the remainder was used for business-type activities. The
refunding of 2012 lease revenue bond reduced its total debt service payments over 7 years by $484,439 and to obtain an economic
gain of $56,492.
The bonds bear 5% interest and are due in annual installments on December 1 through December 1, 2053. In the Statement of Net
Position, the 2023 bonds include the related unamortized premium which is being amortized and charged to expense over the term
of the 2023 bonds. At June 30, 2024, the unamortized premium in the governmental activities was $138,898.
105
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 20
Note 7: Long Term Debt (Continued)
Lease Liability (Cuesta Peak)
On October 23, 2003, the City entered into a 22-year Lease Agreement as lessee of a site for City radio equipment. The City pays
the landlord $16,857.96 annually with a 4% increase. An initial lease liability was recorded in the amount of $157,527. As of June
30, 2024, the value of the lease liability is $57,844. The City is required to make monthly payments of $670 and increase annually
by 4% in October of each year. The lease has an interest rate of 3.04%. The value of the right to use asset as of June 30, 2024 of
$157,442 with accumulated amortization of $110,633 is included in the intangible assets on the capital assets activities table found
in Note 5 above.
Lease Liability (994 Mill Street)
On June 9, 2022, the City entered into a 3-year Lease Agreement as lessee of a site for the use of 11 parking spaces. The term of this
lease commenced on July 1, 2022. The City pays the landlord $10,038 annually with a 3% increase. An initial lease liability was
recorded in the amount of $579,204. As of June 30, 2024, the value of the lease liability is $371,326. The lease has an interest rate
of 4%. The value of the right to use asset as of June 30, 2024 of $579,204 with accumulated amortization of $231,700 is included
in the intangible assets on the capital assets activities table found in Note 5 above.
At June 30, 2024, the aggregate maturities of the aforementioned governmental activities revenue bonds were as follows:
At June 30, 2024, the aggregate maturities of the aforementioned governmental lease liabilities were as follows:
Revenue Bonds
For the Year Ending June 30, Principal Interest Total
2025 857,523$ 640,760$ 1,498,283$
2026 894,093 599,731 1,493,824
2027 719,723 556,819 1,276,541
2028 751,677 523,850 1,275,527
2029 785,182 490,634 1,275,815
2030-2034 4,408,949 1,906,920 6,315,869
2035-2039 3,595,826 1,078,334 4,674,160
2040-2044 2,142,602 544,474 2,687,076
2045-2049 817,478 192,010 1,009,488
2050-2054 525,149 68,035 593,184
Subtotal 15,498,200 6,601,566 22,099,766
Unamortized bond Premium 1,062,295 - 1,062,295
Total 16,560,495$ 6,601,566$ 23,162,061$
For the Year Ending June 30, Principal Interest Total
2025 152,725$ 14,505$ 167,230$
2026 143,768 8,365 152,133
2027 132,678 2,892 135,570
429,171$ 25,762$ 454,933$
106
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 21
Note 7: Long Term Debt (Continued)
Lease-Purchase Financing
Fire Truck. In 2018 the City obtained lease-purchase financing in the amount of $673,095 to purchase a fire truck. The gross amount
of assets under this lease is $673,095 with $90,732 accumulated depreciation included in equipment at June 30, 2021. The lease
agreement bears an interest rate of 3.178% due in quarterly installments of $36,533 beginning December 5, 2018 through September
5, 2023. At June 30, 2024, the principal amount outstanding is $0.
2014 Energy Sources Conservation State Loan
In 2014, the City obtained a note in the amount of $850,775 for the purchase of streetlights. The note bears an interest rate of 1%
due in semi-annual installments on December 22 and June 22 through December 22, 2023 in the amount of $92,242. At June 30,
2024, the principal amount outstanding is $0.
Subscription Based Information Technology Arrangements
Application Software Technology (AST). AST arrangement is a five-year agreement, initiated on September 1, 2021 with an annual
payment of $20,400. The city has used a 2.88% for this arrangement based on similar debt during the same fiscal year. There are no
options to extend the arrangement or purchase the software.
eScribe. eScribe arrangement is a three-year arrangement, initiated on February 17, 2021. The city pays the vendor $18,110 annually
with 2.5% increase. The city has used a 2.85% for this arrangement based on similar debt during the same fiscal year. The
arrangement will automatically renew for an additional Term unless notice of cancellation is received 60 days prior to the expiration
of the Term.
ESRI ArcGIS Online. ESRI ArcGIS Online arrangement is a three-year arrangement, initiated on July 8, 2020. The payment amount
on the city is based on the price of quote. The city has used a 2.85% for this arrangement based on similar debt during the same fiscal
year. The city decided to sign another three-year renewal for the arrangement until July 6, 2026.
Office 365. Office 365 arrangement is a three-year agreement, initiated on July 1, 2022 with an annual payment of $189,126. The
city has used a 2.85% for this arrangement based on similar debt during the same fiscal year. An extended term feature that allows
Online Services to continue month-to-month is available. The city allocates this arrangement for both governmental and business
entity funds.
At June 30, 2024, the aggregate maturities of the aforementioned subscription based I.T. agreements were as follows:
For the Year Ending June 30, Principal Interest Total
2025 252,476$ 9,673$ 262,149$
2026 71,314 2,483 73,797
2027 13,681 456 14,137
2028 9,515 96 9,611
346,986$ 12,708$ 359,694$
107
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 22
Note 7: Long Term Debt (Continued)
Business-Type Activities Summary:
Revenue Bonds
2018 Lease Revenue Refunding Bonds. In 2018, the Authority issued lease revenue bonds in the amount of $16,905,000 to advance
refund the outstanding 2005 revenue refunding bonds and the 2006 and 2009 lease revenue bonds, which were originally issued to
construct several high priority capital improvement projects and to finance the costs of acquisition and construction of public parking
facilities, and the public safety communications and emergency operations center project. Of the original bond issuance, $5,832,225
was used for financing business-type activities related to the original bonds and the remainder was used for governmental activities.
The bonds bear interest from 3.00% to 5.00% and are due in annual installments on June 1, through June 1, 2039 that range from
$255,000 to $1,250,000. At June 30, 2024, the principal amount outstanding that pertains to business-type activities was $3,946,800
of the total $11,440,000 outstanding.
In the Statement of Net Position, the 2018 bonds include the related unamortized premium which is being amortized and charged to
expense over the term of the 2018 bonds. At June 30, 2024, the unamortized premium that pertains to business-type activities was
$399,083
The refunding resulted in a difference of $374,404 between the reacquisition price and the net carrying value of the old debt and is
being amortized to expense through 2039. The City completed the refunding to reduce its total debt service payments over the next
21 years by $3,838,338 and to obtain an economic gain of $2,960,278 (difference between the present values of the old and the new
debt service payments).
2018 Water Revenue Refunding Bonds. In 2018, the City issued water revenue refunding bonds the in the amount of $10,095,000
to refund the 2006 water revenue bonds, which were originally issued to fund improvements to the water treatment plant. The bonds
bear interest from 4% to 5% and are due in annual installments on June 1 through June 1, 2035 that range from $455,000 to $845,000.
At June 30, 2024, the principal amount outstanding on the bonds was $7,365,000.
The City has pledged future water system revenues, net of specific operating expenses, to repay the bonds on parity with a pledge
that services all parity obligations. The bonds are payable solely from water customer net revenues and any moneys in the bond
service fund and the reserve fund. For the year ended June 30, 2024, principal and interest paid, and total customer net revenues
were $886,500 and $6,173,810, respectively. In the Statement of Net Position, the bonds include the related unamortized premium
which is being amortized and charged to expense over the term of the bonds. At June 30, 2024, the unamortized premium was
$1,106,775.
2023 Lease Revenue Refunding Bonds. On September 13, 2023, the San Luis Obispo Public Financing Authority issued
$45,780,000 in Lease Revenue Bonds with premium of $3,707,639 for the construction of the Cultural Arts District Parking Structure
and to refund the 2012 Lease Revenue Bonds. Debt service payments of approximately $2.8 million per year are expected to be
paid from revenues generated by the City’s Parking Fund through December 2053. Of the original bond issuance, $43,860,000 was
used for financing the construction of the Cultural Arts District Parking Structure and the remainder was used for governmental-type
activities.
At June 30, 2024, the principal amount outstanding on the bonds was $43,860,000 with unamortized premium of $3,458,671.
108
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 23
Note 7: Long Term Debt (Continued)
At June 30, 2024, the aggregate maturities of the business-type revenue bonds were as follows:
Loans
2001 CIEDB State Loan. In 2001, the City obtained a note in the amount of $7,765,900 to go towards expanding the Marsh Street
parking structure. The note bears an interest rate of 3.37% due in semi-annual installments on February 1 and August 1 through
August 31, 2031 that range from $169,000 to $396,000. At June 30, 2024, the principal amount outstanding on the loan was
$2,857,619.
2009 Infrastructure and Economic Development Bank Loan– Tank Farm Lift Station. In 2009, the City obtained a note in the
amount of $10,000,000 to go towards the Tank Farm lift station and main sewer project. The note bears an interest rate of 3.25%
due in annual installments on December 1 through December 1, 2037 that range from $212,600 to $520,744. At June 30, 2024, the
principal amount outstanding on the loan was $5,971,321.
The City has pledged future sewer system revenues, net of specific operating expenses, to repay the loan. The loan is payable solely
from sewer customer net revenues. For the year ended June 30, 2024, principal and interest paid, and total customer net revenues
were $532,261 and $8,023,296, respectively.
2018 Clean Water State Revolving Fund Loan. In 2018, the City Council approved the Clean Water State Revolving Fund loan
agreement between the City of San Luis Obispo and the California State Water Resources Control Board for a $140 million loan for
the Water Resource Recovery Facility Project. The City will receive $4 million in principal forgiveness and the remaining $136
million will be repaid over 30 years. The applicable interest rate was set at 1.8%. As of June 30, 2024, the City had partially drawn
down the loan and had an outstanding principal balance of $118,132,363. The loan requires a $4.9 million reserve, which is reflected
in the Sewer Fund.
2020 CIEDB State Loan. In 2020, the City obtained a note in the amount of $14,300,000 for improvements to the City’s Water
Treatment Plant to provide enhanced reliability and energy and operational efficiencies. The note bears an interest rate of 2.5% and
a term of 20 years. At June 30, 2024, the City had partially drawn down the loan and had an outstanding principal balance of
$11,102,800.
Revenue Bonds
For the Year Ending June 30, Principal Interest Total
2025 1,727,477$ 2,709,478$ 4,436,955$
2026 1,815,907 2,621,907 4,437,814
2027 1,795,278 2,529,794 4,325,071
2028 1,888,323 2,438,713 4,327,036
2029 1,984,819 2,342,979 4,327,797
2030-2034 9,951,051 10,255,833 20,206,884
2035-2039 7,464,175 7,985,928 15,450,103
2040-2044 7,262,398 6,264,776 13,527,174
2045-2049 9,317,523 4,203,065 13,520,587
2050-2054 11,964,851 1,555,715 13,520,566
Subtotal 55,171,800 42,908,187 98,079,987
Unamortized bond Premium 4,965,712 - 4,965,712
Total 60,137,512$ 42,908,187$ 103,045,699$
109
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 24
Note 7: Long Term Debt (Continued)
At June 30, 2024, the aggregate maturities of the aforementioned business-type loans were as follows:
Installment Sale Agreements
2008 Suntrust Loan. In 2008, the Board entered into an installment sale contract financing $2,050,000 to finance the Tank Farm lift
station. The terms state an interest rate of 4.2% due in annual installments through 2023 that range from $372,900 to $607,200. At
June 30, 2024, the principal amount outstanding on the loan was $0.
US Bancorp 2014 Wastewater Lease. In 2013, the Board entered into an installment sale contract financing $7,479,000 to finance
the acquisition and installation of improvements to its water reclamation facility. The note bears an interest rate of 2.8994% due in
annual installments on June 1 and December 1 through December 1, 2028 that range from $372,900 to $607,200. At June 30, 2024,
the principal amount outstanding on the loan was $2,869,551.
At June 30, 2024, the aggregate maturities of the aforementioned business-type installment sale agreements were as follows:
There are a number of limitations and restrictions contained in the various bond indentures. City management believes that the City
has complied with the indenture requirements. Security for revenue bonds is paid from receipts or net income and amounts in funds
or accounts established under bond indentures.
Special Assessment Debt Without City Commitment
Special assessment districts have been established in various parts of the City to provide improvements to properties located in those
districts. Properties in these districts are assessed for the cost of improvements; these assessments are payable solely by property
owners over the term of the debt issued to finance these improvements. The City is not legally or morally obligated to pay these
debts or be the purchaser of last resort of any foreclosed properties in these special assessment districts, nor is it obligated to advance
City funds to repay these debts in the event of default by any of these districts. At June 30, 2024, the balances of these Districts’
outstanding debt were as follows:
City of San Luis Obispo Community Facilities District No.2019-1 Special Tax Bonds, Series 2021 $19,530,000
For the Year Ending June 30, Principal Interest Total
2025 4,192,423$ 2,616,919$ 6,809,341$
2026 4,376,673 2,535,885 6,912,559
2027 4,469,227 2,444,852 6,914,080
2028 4,563,854 2,390,713 6,954,566
2029 4,660,603 2,256,587 6,917,189
2030-2034 24,003,040 9,803,373 33,806,413
2035-2039 24,756,274 7,361,763 32,118,037
2040-2044 20,370,699 5,145,925 25,516,624
2045-2049 22,246,853 3,289,355 25,536,209
2050-2054 24,424,458 1,245,087 25,669,545
138,064,103$ 39,090,459$ 154,009,201$
For the Year Ending June 30, Principal Interest Total
2025 541,575$ 75,364$ 616,939$
2026 557,280 59,431 616,711
2027 573,441 43,035 616,476
2028 590,071 26,164 616,235
2029 607,184 8,804 615,988
2,869,551$ 212,798$ 3,082,349$
110
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 25
Note 8: Pension Plans
The City contributes to the California Public Employees’ Retirement System (CalPERS) for its employees. The City participates in
one agent multiple-employer plan for its miscellaneous employees (Miscellaneous Plan) and one cost-sharing multiple-employer
plan for its safety employees (Safety Plan). The Miscellaneous Plan is described in the first section of the footnote under Agent-
Multiple Employer Plan and the Safety Plan follows and is described in the second section of the footnote under Cost-Sharing
Employer Plan. A summary of the government-wide balances for all Plans at June 30, 2024 are as follows:
Agent-Multiple Employer Plan
General Information about the Pension Plan
Plan Descriptions. As noted above, the City contributes to CalPERS for a defined benefit pension plan for all qualified permanent
and probationary employees. CalPERS acts as a common investment and administrative agent for its participating member
employers. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available
reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information
that can be found on the CalPERS website.
Benefits Provided. CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits
to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year
of full-time employment for Tier 1 employees. Tier 2 and PEPRA employees are based on a three-year average of full time
employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members
are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death
Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for the plan are
applied as specified by the Public Employees’ Retirement Law.
The Miscellaneous Plan’s provisions and benefits by tier in effect at June 30, 2024, are summarized as follows:
Net Pension Deferred Outflows Deferred Inflows Pension
Liability of Resources of Resources Expense
Miscellaneous Plan 94,785,929$ 25,732,212$ 24,369$ 14,319,486$
Safety Plan 86,327,322 37,071,779 6,540,623 10,798,207
Total Government-Wide 181,113,251$ 62,803,991$ 6,564,992$ 25,117,693$
Prior to On or after On or after
Hire date December 6, 2012 December 6, 2012 January 1, 2013
Benefit formula 2.7% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service
Benefit payments monthly for life monthly for life monthly for life
Retirement age 50 - 55 50 - 63 52 - 67
Monthly benefits, as a % of
eligible compensation 2.0% to 2.7% 1.092% to 2.418% 1.0% to 2.5%
Required employee contribution rates 7.520%7.520%7.00%
Required employer contribution rates 10.530%10.530% 10.530%
Required unfunded accrued liability payment - (1)- (1)6,616,622$
(1) -Combined with on or after January 1, 2013
Tiers within the Miscellaneous Plan
111
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 26
Note 8: Pension Plans (Continued)
While the City's Miscellaneous Plan is not closed to new entrants, the component option of 2.7% @ 55 is closed to new entrants.
Classic Members as defined by CalPERS entering the City's Miscellaneous Plan would enter the 2% @ 60 option while New
Members as defined by CalPERS entering the City Miscellaneous Plan would enter the 2% @ 62 option.
Employees Covered. As of the measurement date June 30, 2023, the following employees were covered by the benefit terms for the
Miscellaneous Plan:
Contributions. Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates
for all public employers be determined on an annual basis by the actuary and shall be effective on July 1 following notice of a change
in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially
determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an
additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially
determined rate and the contribution rate of employees. Employees that are classified as unrepresented management or unrepresented
confidential contribute 1.5% of pay toward the cost of the City’s share of the annual required contribution. During the measurement
period, the City contributions totaled $11,050,993.
Net Pension Liability
The City’s net pension liability for the Miscellaneous Plan is measured as the total pension liability, less the pension plan’s fiduciary
net position. The net pension liability of the Plan is measured as of June 30, 2023, using an annual actuarial valuation as of June 30,
2022 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability
is shown below.
Actuarial Assumptions. The total pension liability in the June 30, 2022 actuarial valuation was determined using the following
actuarial assumptions:
Miscellaneous Plan
Inactive employees or beneficiaries
currently receiving benefits 467
Inactive employees entitled to but
not yet receiving benefits 460
Active employees 341
Total 1,268
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Salary Increase
Mortality (1)
Post Retirement Benefit Increase
2.30%
6.90%
Entry-Age Normal Cost Method
June 30, 2023
Miscellaneous Plan
June 30, 2022
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021
CalPERS Experience Study and review of Acturial Assumptions. Mortality rate incorporate full generational mortality improvement
using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021
CalPERS Experience Study report from Novemvber 2021 that can be found on the CalPERS website.
The lesser of contract COLA or 2.30% until Purchasing Power
Protection Allowance Floor on Purchasing Power applies, 2.30%
Derived using CalPERS' Membershi p Data for all Funds
Varies b y Entry Age and Service
112
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 27
Note 8: Pension Plans (Continued)
Discount Rate. The discount rate used to measure the total pension liability for the Plan was 6.90%. The projection of cash flows
used to determine the discount rate for each Plan assumed that contributions from all plan members in the Public Employees
Retirement Fund (PERF) will be made at the current member contribution rates that contributions from employers will be made at
statutorily required rates, actuarially determined. Based on those assumptions, each Plan's fiduciary net position was projected to be
available to make all projected future benefit payments of current plan members for all plans in the PERF. Therefore, the long-term
expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension
liability for the Plan.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-
estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are
developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the
expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used
to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-
term projected portfolio return.
The table below reflects the long-term expected real rate of return by asset class.
Assumed
Asset
Asset Class Allocation Real Return (1) (2)
Global Equity - Cap-weighted 30.0% 4.54%
Global Equity - Non-Cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0%
-0.59%
(1) An expected inflation of 2.30% used for this period
(2) Figures are based on the 2021-22 Asset Liability Management Study
Miscellaneous Plan
113
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 28
Note 8: Pension Plans (Continued)
Changes in the Net Pension Liability
The changes in the Net Pension Liability for the Miscellaneous Plan follows:
Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents the net pension liability of the
City for the Plan, calculated using the discount rate for each Plan, as well as what the City’s net pension liability would be if it were
calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
Pension Plan Fiduciary Net Position. Detailed information about the pension plan’s fiduciary net position is available in the
separately issued CalPERS financial reports.
Plan Net
Total Fiduciary Pension
Pension Net Liability/
Liability Position (Asset)
Balance at June 30, 2022 259,710,763$ 168,315,728$ 91,395,035$
Changes during the year:
Service cost 4,695,253 - 4,695,253
Interest on the total pension liability 17,884,042 - 17,884,042
Changes of Benefit Terms 293,205 - 293,205
Changes in assumptions - - -
Differences between expected and
actual experience 4,537,569 - 4,537,569
Contribution - employer - 11,050,993 (11,050,993)
Contribution - employee - 2,606,854 (2,606,854)
Net investment income - 10,485,099 (10,485,099)
Benefit payments, including refunds
of employee contributions (15,400,292) (15,400,292) -
Administrative expense - (123,771) 123,771
Net changes 12,009,777 8,618,883 3,390,894
Balance at June 30, 2023 271,720,540$ 176,934,611$ 94,785,929$
Miscellaneous Plan
1% Decrease 5.90%
Net Pension Liability 129,324,201$
Current Discount Rate 6.90%
Net Pension Liability 94,785,929$
1% Increase 7.90%
Net Pension Liability 66,194,286$
114
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 29
Note 8: Pension Plans (Continued)
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2024, the City’s pension expense for the Miscellaneous Plan was $14,319,486. At June 30, 2024, the
City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
The deferred outflows of resources related to contributions subsequent to the measurement date of $11,022,370 will be recognized
as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows of resources
and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Payable to the Pension Plan
At June 30, 2024, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the
year ended June 30, 2024.
Cost-Sharing Employer Plan
General Information about the Pension Plan
Plan Descriptions. As noted above, the City contributes to CalPERS for a defined benefit pension plan for all qualified permanent
and probationary employees. CalPERS acts as a common investment and administrative agent for its participating member
employers. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available
reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information
that can be found on the CalPERS website.
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to
measurement date 11,022,370$ -$
Changes in assumptions 3,200,227 -
Differences between expected and
actual experiences 3,484,817 (24,369)
Net differences between projected and
actual earnings on plan investments 8,024,798 -
Total 25,732,212$ (24,369)$ 0
Miscellaneous Plan
Measurement Period
Ended June 30 Amount
2024 5,567,517$
2025 3,097,655
2026 5,810,451
2027 209,850
14,685,473$
Miscellaneous Plan
115
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 30
Note 8: Pension Plans (Continued)
The City participates in five tiers of the safety cost-sharing multiple-employer plan. The Safety Plan tiers consist of Safety Tier 1
(police and fire), Police Tier 2, Fire Tier 2, Police PEPRA and Fire PEPRA.
Benefits Provided. CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits
to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year
of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits.
All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: The
Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for
each plan are applied as specified by the Public Employees’ Retirement Law.
The Plan’s provisions and benefits within each tier in effect at June 30, 2024, are summarized as follows:
The Safety Tier 1 is closed to new entrants.
Contributions. Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates
for all public employers be determined on an annual basis by the actuary and shall be effective on July 1st following notice of a
change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30th by CalPERS.
The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the
year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between
the actuarially determined rate and the contribution rate of employees. Members of the Police Officers Association contribute 3% of
pay toward the cost of the City's share of the annual required contribution. Members of the International Association of Firefighters,
Local 3523 contribute 3% of pay toward the cost of the City’s share of the annual required contribution.
For the year ended June 30, 2024, the contributions recognized as part of net pension liabilities were $10,016,823.
Police Fire Police Fire
Prior to Prior to On or after On or after
Hire date December 6, 2012 August 30, 2012 December 6, 2012 August 30, 2012
Benefit formula 3.0% @ 50 3.0% @ 50 2.0% @ 50 3.0% @ 55
Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service
Benefit payments monthly for life monthly for life monthly for life monthly for life
Retirement age 50 - 55 50 - 55 50-55 50 - 55
Monthl y benefits, as a % of eligible compensation 3.00%3.00% 2.0% to 2.7% 2.4% to 3%
Required employee contribution rates 8.990%8.990%8.950%8.990%
Required employer contribution rates 25.640% 29.090%21.780% 24.790%
Required unfunded accrued liability payment 6,091,310$ -$ (1)-$ -$
Police PEPRA Fire PEPRA
On or after On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 2.7% @ 57 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service
Benefit payments monthly for life monthly for life
Retirement age 50-57 50-57
Monthl y benefits, as a % of eligible compensation 2.0% to 2.7% 2.0% to 2.7%
Required employee contribution rates 13.750% 13.750%
Required employer contribution rates 14.500% 14.500%
Required unfunded accrued liability payment -$ -$
(1) - Combined with Police Tier 1
Safety Tier 1 Safety Tier 2
116
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 31
Note 8: Pension Plans (Continued)
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2024, the City reported a net pension liability for its proportionate share of the Plan’s net pension liability of
$86,327,322.
The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension
liability of the Plan is measured as of June 30, 2023, and the total pension liability for the Plan used to calculate the net pension
liability was determined by an actuarial valuation as of June 30, 2022 using standard update procedures. The City’s proportion of
the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the
projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension
liability as of the measurement dates of June 30, 2022 and 2023 was as follows:
For the year ended June 30, 2024, the City recognized pension expense of $10,798,207 for the Safety Plan. At June 30, 2024, the
City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Proportionate Share
Percentage share at 6/30/2022 0.71733%
Percentage share at 6/30/2023 0.69198%
Change - Increase/(Decrease)-0.02535%
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 10,004,005$ -$
Changes in assumptions 5,038,178 -
Differences between expected and actual experiences 6,338,017 542,601
11,813,871 -
Net Difference between employer's contributions and
proprtionate chare of contributions 3,877,708 189,032
Change in employer's proportion - 5,808,990
Total 37,071,779$ 6,540,623$
Safety Plan
Differences between projected and actual investment earnings
117
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 32
Note 8: Pension Plans (Continued)
Pension contributions subsequent to the measurement date of $10,004,005 are reported as deferred outflows of resources and will
be recognized as a reduction of the net pension liability in the year ended June 30,2025. Other amounts reported as deferred outflows
of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Actuarial Assumptions. The total pension liabilities in the June 30, 2022, actuarial valuations for the Safety Plan was determined
using the following actuarial assumptions:
Discount Rate. The discount rate used to measure the total pension liability for the Plan was 6.90%. The projection of cash flows
used to determine the discount rate for the Plan assumed that contributions from all plan members in the Public Employees
Retirement Fund (PERF) will be made at the current member contribution rates that contributions from employers will be made at
statutorily required rates, actuarially determined. Based on those assumptions, each Plan's fiduciary net position was projected to be
available to make all projected future benefit payments of current plan members for all plans in the PERF. Therefore, the long-term
expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension
liability for each Plan.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-
estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are
developed for each major asset class.
Measurement Period
Ended June 30 Amount
2024 5,858,461$
2025 4,429,003
2026 9,909,938
2027 329,749
20,527,151$
Safety Plan
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Salary Increases
Post Retirement Benefit Increase
Mortality (1)
Entry-Age Normal Cost Method
6.90%
2.30%
Safety Plan
June 30, 2022
June 30, 2023
Varies b y Entry Age and Service
Contract COLA up to 2.30% until Purchasing Power Protection
Allowance Floor on Purchasing Power applies
Derived using CalPERS' membership data for all funds
(1) The mortatily table used was developed based on CalPERS-specific data. The rates incorporate Generational Mortality
to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more
details on this table, please refer to the 2021 experience study report that can be found on the CalPERS website
118
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 33
Note 8: Pension Plans (Continued)
In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the
expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used
to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-
term projected portfolio return.
The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital
market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative
expenses.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate. The following presents the City’s
proportionate share of the net pension liability, calculated using the discount rate for the Plans as well as what the City’s proportionate
share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage
point higher than the current rate:
Pension Plan Fiduciary Net Position. Detailed information about each safety plan’s fiduciary net position is available in the
separately issued CalPERS financial reports.
Payable to the Pension Plan
At June 30, 2024, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the
year ended June 30, 2024
Assumed
Asset
Asset Class Allocation Real Return (1) (2)
Global Equity - Cap-weighted 30.0% 4.54%
Global Equity - Non-Cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0%
-0.59%
(1) An expected inflation of 2.30% used for this period
(2) Figures are based on the 2021-22 Asset Liability Management Study
Safety Plan
1% Decrease 5.90%
Net Pension Liability 120,225,237$
Current Discount Rate 6.90%
Net Pension Liability 86,327,322$
1% Increase 7.90%
Net Pension Liability 58,613,365$
119
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 34
Note 8: Pension Plans (Continued)
Defined Contribution Pension Plan
The City makes bi-weekly contributions to a 401a retirement plan (Plan) for each department head. The current contribution on
behalf of each Participant equals 1% of base earnings up to the maximum allowable by law. In addition, each Participant may
contribute up to 14% of earnings to the Plan. Prior to August 2018, non-department head management employees also participated
in the Plan and received a 1% employer contribution.
Employees are fully vested in the City’s contributions (and interest allocated to the employee’s account) at all times. The Plan is
administered by Public Agency Retirement Services (PARS). The Plan assets are held in trust for the exclusive benefit of the
Participants or their Beneficiaries. The City has the right at any time to terminate the Plan by resolution of the City Council.
During the fiscal year, the City contributed $21,418 to the Plan and Participants contributed $151,939. There were no Plan
forfeitures. As of June 30, 2023, the City had $0 payable to the Plan.
The City makes bi-weekly contributions to 401a retirement plans (Appointed Officials Plans) for the City Manager and City
Attorney.
Employees are fully vested in the City’s contributions (and interest allocated to the employee’s account) at all times. The Appointed
Officials Plans are administered by Mission Square Retirement. The Plan assets are held in trust for the exclusive benefit of the
Participants or their Beneficiaries. The City has the right at any time to terminate the Plan by resolution of the City Council.
During the fiscal year, the City contributed $27,488 to the Appointed Officials Plans. There were no Plan forfeitures. As of June 30,
2023, the City had $0 payable to the Plan.
In the year 2022, The City evaluated the requirements of GASB Statement No. 97, Certain Component Unit Criteria, and Accounting
and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans and determined that plan didn’t meet
the criteria to be reported as a fiduciary activity, as required by the above mentioned GASB Statements.
Note 9: Other Post-Employment Benefits (OPEB)
General Information about OPEB
Plan Description. The City’s primary other post-employment benefits (OPEB) cost obligation is for retiree health benefits under its
election to participate in the CalPERS Health Benefit Program, an agent multiple-employer defined benefit OPEB plan, under the
“unequal contribution option.” The City entered the CalPERS medical insurance program in 1993 under the Public Employees’
Medical and Hospital Care Act (PEMHCA). During the fiscal year ended June 30, 2009, the City entered into an agreement to
participate in an irrevocable trust to provide a funding mechanism for retiree health benefits. The Trust, California Employers’
Retiree Benefit Trust (CERBT), is administered by CalPERS and managed by a separately appointed board, which is not under
control of the City Council. This Trust is not considered a component unit of the City.
Benefits Provided. The City provides post-employment heath care insurance, in accordance with Memorandums of Understanding,
to all employees who retire from the City upon or after attaining age 50 with at least 5 years of service or disability retirement.
Miscellaneous retires who are PEPRA new hires are eligible at age 52. For each retiree enrolled in a CalPERS medical plan, the
employer will pay the required statutory PEMHCA minimum, which is $149 per month per retiree in calendar year 2022 and $151
per month per retiree in calendar year 2023. This amount will increase with the health care component of CPI, as announced by the
CalPERS Board each year. The retiree must pay the difference between the premium amount, which depends upon the medical plan
benefits selected, and the employer-paid minimum. In addition, the City pays 50% of the premium up to the retiree’s age of 65 for
one grandfathered executive management retiree hired prior to August 2000.
There is no OPEB provided to terminated vested employees. The employer-paid amount will continue to a surviving spouse if the
retiree elects a CalPERS survivor annuity. There are no required employee contributions, although the retiree must pay the difference
between the premium and the employer-paid amount. The employer is contributing the full Actuarially Determined Contribution.
120
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 35
Note 9: Other Post-Employment Benefits (OPEB) (Continued)
Employees Covered. At June 30, 2023, the measurement date, the following number of employees were covered by the benefit terms:
Contributions. The contribution requirements of the plan members and the City are established and may be amended by the City.
The City prefunds the plan through CERBT by contributing at least 100% of the annual required contribution. For the measurement
period, the City’s contributions totaled $1,427,129.
Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2023 and the total OPEB liability used to the calculate the net OPEB
liability was determined by an actuarial valuation dated June 30, 2023, based on the following actuarial methods and assumptions:
Discount Rate. The discount rate used to measure the total OPEB liability was 6.25%. The projection of cash flows used to determine
the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based
on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments
for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan
investments was applied to all periods of projected benefit payments to determine the total OPEB liability.
OPEB Plan
Inactive employees or beneficiaries
currently receiving benefits 192
Inactive employees entitled to but
not yet receiving benefit payments 240
Active employees 450
Total 882
Actuarial Valuation Date June 30, 2023
Measurement Date June 30, 2023
Contribution Policy Contributes full ADC
Actuarial Assumptions:
Discount Rate and 6.25% at June 30, 2023 and 6.25% at June 30, 2022
expected Long-Term Rate of Expected City contributions projected to keep
Return on Assets sufficient plan assets to pay all benefits from trust
General Inflation 2.50% annually
Mortality, Retirement, Disability, Rates from CalPERS 2000-2019 Experience Study
Termination
Mortality Improvement Post-retirement mortality projected fully generational with
Scale MP-2021
Salary Increases Aggregate - 2.75%
Merit - CalPERS 2000-2019 Experience Study
Medical Trend Non-Medicare - 8.5% for 2025, decreasing to an ultimate rate of 3.45%
in 2076 and later years.
Medicare - 7.50% (non-Kaiser) for 2025, decreasing to an ultimate rate
of 3.45% in 2076 and later years
PEMHCA Minimum Increases 3.50% annually
Participation at Retirement Currently covered: 70% Currently waived: 15%
121
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 36
Note 9: Other Post-Employment Benefits (OPEB) (Continued)
Investments. The long-term expected rate of return on OPEB plan investments was determined using a building- block method in
which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for
each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future
real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates
of geometric real rates of return for each major asset class are summarized below:
Changes in the Net OPEB Liability
The changes in the net OPEB liability for the June 30, 2023 measurement date are as follows:
Current Expected
Target Real Rate
Asset Class Allocation of Return
Global Equity 49%4.56%
Fixed Income 23%1.56%
TIPS 5%-0.08%
Commodities 3%1.22%
REITs 20%4.06%
Assumed Long-Term Rate of Inflation 2.50%
Expected Long-Term Net Rate of Return, Rounded 6.25%
The long-term expected real rates of return are presented as geometric means.
OPEB Plan
Total Plan Fiduciary Net
OPEB Liability Net Position OPEB Liability
Balance at June 30, 2022 14,918,389$ 9,633,672$ 5,284,717$
Changes during the year:
Service cost 493,787 - 493,787
Interest on the total OPEB liability 940,850 - 940,850
Changes in assumptions (291,401) - (291,401)
Differences between Expected and
actual experience (2,105,353) - (2,105,353)
Net plan to plan resource movement
Contribution - employer - 1,427,129 (1,427,129)
Net investment income - 619,941 (619,941)
Benefit payments, including refunds -
of employee contributions (717,143) (717,143) -
Administrative expense - (8,784) 8,784
Net changes (1,679,260) 1,321,143 (3,000,403)
Balance at June 30, 2023 13,239,129$ 10,954,815$ 2,284,314$
122
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 37
Note 9: Other Post-Employment Benefits (OPEB) (Continued)
Sensitivity of Net OPEB Liability to Changes in the Discount Rate. The following presents the net OPEB liability at the current
discount rate, as well as what the net OPEB liability would be if it were calculated using a hypothetical discount rate that is one
percentage point lower or one percentage point higher than the current rate.
Sensitivity of Net OPEB Liability to Changes in Healthcare Cost Trend Rates. The following presents the net OPEB liability at
current healthcare cost trend rates, as well as what the net OPEB liability would be if it were calculated using hypothetical healthcare
cost trend rates that are one percentage point lower or one percentage point higher than the current rate.
OPEB Plan Fiduciary Net Position. Detailed information about the OPEB Plan’s fiduciary net position is available in the separately
issued CalPERS financial reports on the CERBT.
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the year ended June 30, 2024, the City’s OPEB expense was $530,486. At June 30, 2024, the City reported deferred outflows of
resources and deferred inflows of resources related to OPEB from the following sources:
OPEB Plan
1% Decrease 5.25%
Net OPEB Liability 3,951,720$
Current Discount Rate 6.25%
Net OPEB Liability 2,284,314$
1% Increase 7.25%
Net OPEB Liability 893,209$
OPEB Plan
1% Decrease
Net OPEB Liability 721,054$
Current Trend
Net OPEB Liability 2,284,314$
1% Increase
Net OPEB Liability 4,205,307$
Deferred Outflows Deferred Inflows
of Resources of Resources
OPEB contributions subsequent to
measurement date 740,550$ -$
Changes in assumptions 336,664 363,915
Differences between expected and
actual experiences 226,401 2,690,543
Net differences between projected and
actual earnings on plan investments 595,146 -
Total 1,898,761$ 3,054,458$
123
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 38
Note 9: Other Post-Employment Benefits (OPEB) (Continued)
OPEB contributions subsequent to the measurement date of $740,550 are reported as deferred outflows of resources and will be
recognized as a reduction of the net OPEB liability in the year ended June 30, 2024. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:
Payable to the OPEB Plan
At June 30, 2024, the City reported a payable of $0 for the outstanding amount of contributions to the OPEB plan required for the
year ended June 30, 2024.
Note 10: Deferred Compensation Plan
All employees of the City are eligible to participate in a City sponsored deferred compensation plan (457 Plan). The 457 Plan
provides for the deferral of a portion of the employees’ compensation until retirement, termination, or certain other covered events.
The assets of the 457 Plan are held in trust for the exclusive benefit of Plan Participants or Beneficiaries.
Deferred contribution(s) by a participant in any taxable year will not exceed the lessor of (1) the applicable dollar amount provided
under Section 457(b)(2) of the Internal Revenue Code (adjusted for cost of living under Section 457(e)(15) of the Internal Revenue
Code), or (2) 100% of the participant’s includible compensation. A participant who has attained age 50 before the close of the
calendar year may elect Age 50 Plus Catch-up Contributions and commence making such contributions to his/her Participant Deferral
Account.
The City has the right at any time to terminate the 457 Plan by resolution of the City Council.
In the year 2022, The City evaluated the requirements of GASB Statement No. 97, Certain Component Unit Criteria, and Accounting
and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans and determined that plan didn’t meet
the criteria to be reported as a fiduciary activity, as required by the above mentioned GASB Statements.
Fiscal Year
Ended June 30 Amount
2025 (317,828)$
2026 (361,838)
2027 (30,353)
2028 (238,331)
2028 (164,652)
Thereafter (783,245)
(1,896,247)$
124
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 39
Note 11: Interfund Transactions
City had the following short-term interfund receivable and payable balances as of June 30, 2024:
City had the following long-term interfund receivable and payable balances as of June 30, 2024:
Interfund transfers for the year ended June 30, 2024 consist of the following:
Short-term interfund receivables and payables include temporary negative cash balances that result from the timing of cash flows at
year end and the time lag between the dates that transactions are recorded in the accounting system and payment between funds are
made. Liquidation of interfund receivables and payables typically occurs in the first quarter of the subsequent fiscal year. Interfund
balances between governmental funds are not included in the government-wide Statement of Net Position.
Advances in the amount of $4,845,000 from the General Fund to the Parking Fund was a loan provided by the General Fund to the
Parking Fund for the acquisition of the property located at 1166 Higuera Street. The general fund will be reimbursed by the Parking
Fund at a rate of 2.88% and a repayment term of 30 years, with deferral of principal payments for three years and interest payments
starting immediately.
Interfund transfers are used to move revenues from the fund with collection authorization to the debt service fund as debt service
principal and interest payments become due or to move unrestricted revenues to finance various programs that the government must
account for in other funds in accordance with budgetary authorizations. This may include amounts provided as matching funds for
various grant programs.
Due from
Other Funds
Due to Other
Funds
General Fund 166,601$ -$
Nonmajor Governmental Funds - 166,601
Total 166,601$ 166,601$
Advances from
Other Funds
Advances to
Other Funds
General Fund -$ 4,845,000$
Parking Fund 4,845,000 -
Total -$ 4,845,000$
Non-Major
General Governmental Water Fund Sewer Parking
Transfer Out Fund Funds Funds Fund Fund Total
General Fund -$ 7,626,984$ 1,075,110$ 1,192,689$ 368,233$ 10,263,016$
Capital Outlay Fund 29,632,692 404,939 - - - 30,037,631
Non-Major Governmental Fund 11,105,310 2,200,000 - - - 13,305,310
Total 40,738,002$ 10,231,923$ 1,075,110$ 1,192,689$ 368,233$ 53,605,957$
Transfer In
125
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 40
Note 12: Joint Ventures, Jointly Governed Organizations and Operating Agreements
The City participates in three multi-governmental organizations: the Whale Rock Commission, the San Luis Obispo Regional Transit
Authority, and the San Luis Obispo Council of Governments. The City also has an operating agreement related to Nacimiento Water
Supply Project. The following provides a general description of each of these agencies and operating agreements along with a
summary of financial information and indebtedness:
Whale Rock Commission
General Description. The Whale Rock Commission (Commission) was established on December 12, 1960 to govern the operations
of the Whale Rock Reservoir. The Commission is composed of six voting members and two non-voting members: three voting
members are appointed by the City; one is appointed by California Polytechnic State University; one by California Men's Colony;
and one by the Director of Finance, State of California. The two non-voting members are position appointments: the Director of
Water Resources, State of California; and the Water Superintendent, City of San Luis Obispo. The Commission is authorized by its
respective agencies to establish policies for the operation of the Reservoir, to contract for the sale of excess water, and to approve
the annual budget.
The City, in accordance with established policies of the Commission, operates and maintains the Reservoir; prepares and
recommends the annual budget; and maintains the fiscal records and funds of the Commission. The Whale Rock Custodial Fund is
used to account for the Commission's ongoing operating activities. Ownership in the Reservoir is as follows: 55.05%, City of San
Luis Obispo; 33.71%, California Polytechnic State University; and 11.24%, California Men's Colony. The City's share of the
Commission's expenses is recorded as expenses of the Water Fund. All receipts and disbursements of the Commission are included
in an Custodial Fund.
Financial Information and Indebtedness. In 1959, the City issued general obligation bonds to secure a future water supply to City
residents. Some of the proceeds from the bonds were used to participate with the State of California in the development of the
Reservoir. Participation, which is in proportion to the original investment, includes continued operation and maintenance of the
facilities. Such indebtedness was directly attributable to provision of water service, and as such, all related indebtedness was recorded
in the City's Water Enterprise Fund. These bonds matured in August 1999.
The City's original investment in the Reservoir project aggregates $3,900,000 and was amortized on a straight-line basis over thirty-
five years. Separate financial statements are available from the Whale Rock Commission, 879 Morro Street, San Luis Obispo, CA
93401.
The following segment financial information for the Whale Rock Commission and the Water Fund’s related investment in the joint
venture is presented as of and for the year ended June 30, 2024:
City's Investment
Joint Venture in Joint Venture
Total assets 6,421,390$ 3,534,975$
Total liabilities 205,962 113,381
Fund balance 6,215,428$ 3,421,594$
Total revenues 3,046,366$ 1,677,024$
Total expenditures 2,686,386 1,478,855
Excess of revenues over expenditures 359,980$ 198,169$
126
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 41
Note 12: Joint Ventures, Jointly Governed Organizations and Operating Agreements (Continued)
San Luis Obispo Regional Transit Authority
General Description. The City is a member of the San Luis Obispo Regional Transit Authority (Authority), which was established
on February 27, 1990, to operate a joint public transportation system. The Authority is composed of the Cities of Arroyo Grande,
Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, and San Luis Obispo, as well as the County of San Luis Obispo.
The Authority is governed by a Board of Directors comprised of representatives of each of the seven cities, in addition to the five
members of the Board of Supervisors. Each member of the Board has one vote. The Board has the authority to establish policies for
the operation of the transit system and to adopt an annual budget. Each member makes an annual contribution to the agency for
funding the adopted budget.
Financial Information. The City allocates a portion of its Transportation Development Act funds directly to the Authority. During
2022-23 the City contributed approximately $1,068,248 of these funds to the Authority. The City's share of assets, liabilities, and
fund equity has not been calculated by the Authority and therefore is not known to the City; however, based on the City's limited
financial participation in the Authority, any such assets, liabilities, or equity are not believed to be significant to the basic financial
statements taken as a whole. Separate financial statements are available from the Authority, 179 Cross Street, Suite A, San Luis
Obispo, CA 93401.
San Luis Obispo Council of Governments
General Description. The San Luis Obispo Council of Governments (SLOCOG) was formed in 1968 through a joint powers
agreement among the incorporated cities and the County of San Luis Obispo. It acts as the regional transportation planning agency
for the county and is the metropolitan planning organization and the congestion management agency for the region. The governing
board consists of twelve delegates, each with one vote that includes the five members of the County Board of Supervisors and one
representative from each of the seven cities in the County.
Financial Information. A portion of the City's Transportation Development Act funds are directly allocated to the SLOCOG. The
City's share of assets, liabilities, and fund equity has not been calculated by SLOCOG and therefore is not known to the City;
however, based on the City's limited financial participation in SLOCOG, any such assets, liabilities, or equity are not believed to be
significant to the basic financial statements taken as a whole. Separate financial statements are available from SLOCOG, 1114 Marsh
Street, San Luis Obispo, CA 93401.
Nacimiento Water Supply Project
General Description. In 2004, the Council adopted a resolution approving an agreement with the San Luis Obispo County Flood
Control and Water Conservation District (District) for the design, construction, and operations of the facilities required for the
delivery of 5,482 acre-feet of water per year to the City of San Luis Obispo from the Nacimiento Water Supply Project (Project).
The agreement includes conditions relative to the costs associated with the project and how these costs will be shared and paid by
the participants in the project.
Each project participant, including the City, has entered into an agreement to provide for the development, financing, construction,
operation and maintenance of the Project. The agreement is a “take-or-pay” obligation: the City is obligated to pay amounts specified
in the agreement whether or not water is delivered. The City is required to pay an amount equal to its share of various capital expenses
relating to the funding of design costs, engineering, planning, environmental mitigation, equipping new facilities and/or construction
efforts, accounting services, project administration and management, installation, grading, razing and building the Project. The City
is also required to pay for its share of operating and maintenance costs. The City records these payments as operating expenses in its
water enterprise fund.
127
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 42
Note 12: Joint Ventures, Jointly Governed Organizations and Operating Agreements (Continued)
The City is required to make payments under its agreement solely from the revenues of its water system. The City agreed to establish
and collect rates and charges from the customers of the City’s water enterprise fund at levels sufficient to produce revenues equal
to: (1) the costs of operating and maintaining the City’s water enterprise; plus (2) the contract payments, calculated in accordance
with the delivery contract including the amounts allocated as the City’s share of capital projects installment debt service; plus (3)
the coverage factor for the amounts allocated as the City’s share of capital projects installment debt service; and (4) under certain
circumstances, that the City understands and agrees that the delivery contract may impose a surcharge following the occurrence of
any payment default.
Financial Information. In September 2007, the District sold water revenue bonds in the amount of $196 million for the construction
of the Project. In addition, the District sold water revenue bonds in the amount of $182 million. These bonds were refinanced in
May 2018. Based on the City’s share of construction costs, debt service and operating and maintenance, the following summarizes
the City’s Project obligations for 2023-24 and five-year projections for the 2018 bonds that will remaining outstanding following
the refunding.
Separate financial statements are available from the San Luis Obispo County Flood Control and Water Conservation District, 1050
Monterey Street, San Luis Obispo, CA 93401.
Note 13: Risk Management
California Joint Powers Insurance Authority
The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 119 California
public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose
of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or
reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began
covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of
Directors. The Board operates through a nine-member Executive Committee.
Each member pays an annual contribution to cover estimated losses for the coverage period. This initial funding is paid at the
beginning of the coverage period. After the close of the coverage period, outstanding claims are valued. A retrospective deposit
computation is then conducted annually thereafter until all claims incurred during the coverage period are closed on a pool-wide
basis. This subsequent cost reallocation among members based on actual claim development can result in adjustments of either
refunds or additional deposits required.
The total funding requirement for self-insurance programs is estimated using actuarial models and prefunded through the annual
contribution. Costs are allocated to individual agencies based on exposure (payroll) and experience (claims) relative to other
members of the risk-sharing pool. Additional information regarding the cost allocation methodology is provided below.
Actual 2024 4,619,372$
Projected:
2025 4,621,210
2026 4,622,040
2027 4,615,840
2028 4,621,896
2029-33 23,095,219
2034-38 23,103,289
2039-41 9,320,529
Nacimiento Water Supply Obligations
128
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 43
Note 13: Risk Management (Continued)
Self-Insurance Programs of the Authority
General Liability and Workers’ Compensation. The City is a member of the California Joint Powers Insurance Authority (CJPIA),
which provides joint protection programs and group purchased insurance for public entities covering liability, errors and omission
losses, auto liability, employment practices liability, crime, pollution, workers’ compensation injuries and coverage for city-owned
property. The City has a retained limit of $500,000 per occurrence for liability and no retained limit for workers’ compensation.
Liabilities of the City are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonable estimated.
Liabilities include an amount for claims that have been incurred but not reported (IBNR). The result of the process to estimate the
claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines and
damage awards. Accordingly, claims are re-evaluated periodically to consider the effects of economic and social factors. The
estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other
claim adjustment expenses regardless of whether or not they are attributable to specific claims. Estimated recoveries, for example
from salvage or subrogation, are another component of the claim’s liability estimate.
During the past three fiscal years, none of the protection programs experienced settlements or judgments that exceeded pooled or
insured coverage. There were also no significant reductions in pooled or insured coverage in 2023-24. CJPIA covers workers’
compensation claims up to a pooled limit of $2 million per occurrence and provides excess coverage to statutory limits with a group
purchased commercial insurance policy. The City pays an annual contribution to CJPIA and may share in any member refunds in
the event that pooled funding exceeds the cost of pooled claims and claim-related expenses, or the City may be required to pay
additional contributions based upon CJPIA’s operating results.
Financial statements of CJPIA may be obtained from its administrative office located at 8081 Moody Street, La Palma, California
90623, or by calling (562) 467-8700.
Additional claims and lawsuits have been filed against the City in the normal course of business. It is reasonably possible that the
City may be liable for claims not to exceed $500,000. In the opinion of management, the resolution of these matters will not have a
material adverse effect on the financial condition of the City.
Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded
pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage from coverage in 2023-
24.
Self-Insurance
The City retains the risk for workers’ compensation losses incurred prior to joining the California Joint Powers Insurance Authority.
Several member agencies of the now dissolved Central Coast Cities Self-Insurance Fund continue to participate in a non-risk sharing
arrangement for claims management and the purchase of excess insurance. The participating agencies share a set of common
guidelines and annually set aside premiums to pay their individual losses within their self-insured retentions. Losses are debited and
investment income is credited to specific member accounts. The City has not incurred any losses in excess of insurance coverage.
Claims liabilities in the governmental funds are generally liquidated by the General Fund.
129
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 44
Note 13: Risk Management (Continued)
The last actuarial study to determine the undiscounted outstanding claims liability was completed for the year ended June 30, 2024.
The liability was estimated based on the actuarial study and considered claims asserted and paid, and the time limitations for filing
claims. There are no estimates for claims incurred but not reported because the time limit for filing claims has elapsed. The estimated
asset at June 30, 2024 is calculated as follows:
Note 14: Commitments and Contingencies
Litigation
The City is presently involved in certain matters of litigation that have arisen in the normal course of conducting City business. City
management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are adequately covered by
insurance and not expected to result in a material adverse financial impact on the City.
Grant Awards
Under the terms of Federal and State grants, audits may be required, and certain costs may be questioned as not being appropriate
expenditures under the terms of the grants. Such audits could lead to requests for reimbursement to the grantor agencies. City
management believes disallowances, if any, will be immaterial.
Regional Transit Authority Pension Expense
The City is presently a member agency of the San Luis Obispo Regional Transit Authority (SLORTA) (see Note 14), a duly
established Joint Powers Authority (JPA) comprised of all local cities and the County of San Luis Obispo. The City’s contractual
contribution to that entity is approximately 18% of the total expense. The City was advised that the Regional Transit Authority was
working with CalPERS to determine whether it is required to enroll certain previously unenrolled transit employees in the CalPERS
pension system and whether the entity may be liable for obligations related to the failure to enroll those employees and make
contributions on their behalf. On December 10, 2019 the County Board of Supervisors approved a contract for participation of the
JPA in the San Luis Obispo County Pension Trust and the Employees Retirement Plan. The current amount of potential CalPERS
unfunded liability for the JPA may reach as high as $4 million. It is not anticipated that the City’s annual payment to the JPA will
increase to satisfy this unfunded liability.
Self-insurance activity as of and for the year ended June 30, 2024
is summarized is as follows:
Interest earnings 14,417$
Claims expense 50,962
Estimated liability for reported claims and settlement expenses (407,770)
Assets on deposit 566,131
Estimated unpaid claims asset 158,361$
Changes in the balances of claim assets during the past two fiscal years
are as follows:
Estimated unpaid claims asset June 30, 2022 560,422$
Claim payments and related expenditures reimbursement (542,713)
Change in estimated claims asset June 30, 2023 28,884
Interest earnings 10,125
Withdrawal 200,000
Estimated unpaid claims asset June 30, 2023 256,718
Claim payments and related expenditures reimbursement (164,804)
Change in estimated claims asset June 30, 2024 52,030
Interest earnings 14,417
Withdrawal -
Estimated unpaid claims asset June 30, 2024 158,361$
130
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 45
Note 15: Construction and Other Significant Commitments
Construction and other significant commitments as of June 30, 2024, including encumbrances outstanding at year-end, are as follows:
Long-term construction contracts are billed and paid on a percentage completion basis by construction phase.
Note 16: Fund Balance Deficiency
As of June 30, 2024, the City had fund with negative fund balance for Downtown BID and Debt Service fund as below.
Note 17: New Accounting Standards
Accounting Standards Adopted
GASB Statement No. 100, Accounting Changes and Error Corrections-an Amendment of GASB Statement No. 62 – The
primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes
and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making
decisions or assessing accountability. The City has implemented this statement in current fiscal year.
GASB Statement No. 101, Compensated Absences – The primary objective of this Statement is to better meet the
information needs of financial statement users by updating the recognition and measurement guidance for compensated
absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by
amending certain previously required disclosures. The City has implemented this statement in current fiscal year.
General Fund 2,205,473$
Special Revenue Funds 199,541
Capital Project Funds 8,821,483
Enterprise Funds:
Water 7,135,401
Sewer 10,759,831
Parking 33,763,836
Transit 9,720,725
Total 72,606,290$
Funds Deficiency
Downtown BID (133,562)$
Debt Service (158,557)
Total (292,119)$
131
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024
Page 46
Note 17: New Accounting Standards (Continued)
New Accounting Standards
The city is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following
GASB Statements:
GASB Statement No. 102 – Certain Risk Disclosures – The primary objective of this Statement is to provide users of
government financial statements with essential information about risks related to a government’s vulnerabilities due to
certain concentrations or constraints.
GASB Statement No. 103 – Financial Reporting Model Improvements - The primary objective of this Statement is to
improve key components of the financial reporting model to enhance its effectiveness in providing information that is
essential for decision making and assessing a government’s accountability. This Statement also addresses certain
application issues.
GASB Statement No. 104 – Disclosure of Certain Capital Assets – The primary objective of this Statement is to provide
users of governmental financial statements with essential information about certain types of capital assets.
Note 18: Prior Period Adjustments
During 2024, the City recorded the following prior period adjustments:
(1) Error correction to Community Development Block Grant (CDBG) Fund - Beginning fund balance of the CDBG fund was
restated due to the reclassification of prior year deferred inflows of resources to fund balance. The City recorded expenditures when
issuing the loans in the prior years and recorded deferred inflows of resources and loan receivables when recording the loans
correctly. An adjustment was necessary to properly restate the deferred inflows of resources. Therefore, deferred inflows of
resources, were overstated by $1,112,944, and net position was understated by $1,112,944 for the fiscal year ended June 30, 2023.
(2) Error correction to Transportation Impact Fee Fund and MASP Park Fund – Cash and fund balances were restated to record
the pay back of interfund borrowing between Transportation Impact Fee Fund and MASP Park Fund. The payback of the interfund
borrowing from MASP Park fund to Transportation Impact Fee Fund was not recorded in the past and adjustment was necessary to
properly restate the cash and fund balances. Therefore, cash in the Transportation Impact Fee fund was overstated by $1,504,676,
fund balance was overstated by $1,504,676 for the fiscal year ended June 30, 2023, cash in the MASP fund was understated by
$1,504,676, fund balance was understated by $1,504,676 for the fiscal year ended June 30, 2023. The net impact of this error
correction on the fund balance of nonmajor funds is zero.
6/30/2023
As Previously
Reported
Error Correction
(1)(2)
7/1/2023
As Restated
Governmental Funds 111,232,587$ 1,112,944$ 112,345,531$
Nonmajor Funds 44,196,801 1,112,944 45,309,745
132
REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
133
134
City of San Luis Obispo, California
Budgetary Comparison Schedule
General Fund
For the Fiscal Year Ended June 30, 2024
Original
Budget
Final
Budget Actual
Variance With
Final Budget
Positive
(Negative)
REVENUES:
Taxes and franchise fees:
Sales and use tax - general 22,578,995$ 22,578,995$ 22,285,972$ (293,023)$
Transaction and use tax - Local Revenue Measure 30,262,098 30,262,098 30,597,288 335,190
Property tax 15,352,066 15,742,015 16,379,368 637,353
Transient occupancy tax 10,704,000 10,704,000 11,063,012 359,012
Utility users tax 5,710,320 6,332,000 6,301,505 (30,495)
Property tax in lieu of VLF 6,475,114 6,948,663 6,815,975 (132,688)
Franchise taxes 1,854,000 2,000,000 2,366,286 366,286
Business tax 4,352,293 4,352,293 2,941,928 (1,410,365)
Cannabis Tax - - 1,116,495 1,116,495
Real property transfer tax 172,606 173,092 528,088 354,996
Total taxes 97,461,492 99,093,156 100,395,917 1,302,761
Fines, forfeitures and penalties 223,071 206,071 266,103 60,032
Use of money and property 230,000 1,115,000 3,907,185 2,792,185
Subventions and grants:
Other State and Federal grants 664,511 1,047,153 1,992,470 945,317
Other subventions and grants 498,988 550,000 520,952 (29,048)
Total subventions and grants 1,163,499 1,597,153 2,513,422 916,269
Charges for services:
Public safety:
Police 511,467 683,047 896,910 213,863
Fire:
Medical emergency recovery 580,136 650,154 652,679 2,525
Fire safety/hazardous materials permits 991,810 994,364 1,026,640 32,276
Other fire revenues 5,890 50,024 67,766 17,742
Community development:
Planning and zoning fees 2,453,793 2,548,217 1,491,167 (1,057,050)
Construction plan and check inspections 3,821,743 3,821,743 4,057,132 235,389
Infrastructure plan check and inspections - - 808,190 808,190
Culture and recreation:
Adult athletic fees 279,720 248,020 310,283 62,263
Youth athletic fees 882,576 903,596 1,157,352 253,756
Rental and use fees 394,448 394,448 357,735 (36,713)
Aquatics 338,700 377,858 363,569 (14,289)
Golf course 284,000 264,000 287,861 23,861
General government:
Other service charges 697,050 725,224 829,594 104,370
Total charges for services 11,241,333 11,660,695 12,306,878 646,183
Impact Fees - - 53,830 53,830
Other revenues 469,100 496,773 624,261 127,488
Total Revenues 110,788,495 114,168,848 120,067,596 5,898,748
(Continued)
135
City of San Luis Obispo, California
Budgetary Comparison Schedule
General Fund, continued
For the Fiscal Year Ended June 30, 2024
Page 2
Original
Budget
Final
Budget Actual
Variance With
Final Budget
Positive
(Negative)
Expenditures:
Public Safety:
Police protection:
Administration 2,300,494 2,806,821 2,478,670 328,151
Investigations 3,057,865 3,165,279 3,200,666 (35,387)
Neighborhood services 302,867 302,353 287,621 14,732
Support services 3,596,650 3,699,019 3,411,429 287,590
Patrol services 11,914,934 12,492,203 12,929,619 (437,416)
Traffic safety 913,242 945,069 938,148 6,921
Total police protection 22,086,053 23,410,744 23,246,153 164,591
Fire and environmental safety:
Administration 1,292,345 1,337,074 1,227,817 109,257
Emergency response 11,826,682 12,509,683 12,688,880 (179,197)
Fire Apparatus Services 489,400 526,181 543,133 (16,952)
Hazard protection 1,035,824 1,079,429 1,009,920 69,509
Training 113,448 148,605 161,061 (12,456)
Disaster preparedness 195,444 210,460 161,384 49,076
Mobile Crisis Unit 320,417 313,423 160,282 153,141
Total fire and environmental safety 15,273,559 16,124,854 15,952,477 172,377
Total public safety 37,359,612 39,535,599 39,198,630 336,969
Transportation:
Transportation planning and engineering 1,080,054 1,129,766 1,081,726 48,040
Street and sidewalk maintenance 2,349,855 2,303,631 2,159,332 144,299
Traffic signals and street lights 596,347 643,266 641,707 1,559
Creek and flood protection 1,524,712 1,751,827 1,652,306 99,521
Total transportation 5,550,967 5,828,489 5,535,071 293,418
Culture and Recreation:
Recreation programs:
Recreation administration 858,036 880,890 863,943 16,947
Aquatics/Sinsheimer park facilities 605,083 610,211 651,870 (41,659)
Children's services 1,413,794 1,432,503 1,352,454 80,049
Facilities 355,639 362,366 337,684 24,682
Special events 10,500 10,500 10,833 (333)
Recreational sports 696,591 707,143 612,254 94,889
Golf course 806,211 814,862 735,748 79,114
Ranger services 898,725 916,061 836,599 79,462
Maintenance programs:
Swim center maintenance 673,110 676,155 626,979 49,176
Parks and landscape maintenance 4,126,238 4,264,611 3,824,940 439,671
Tree maintenance 368,367 306,024 275,854 30,170
Cultural and social service programs: Human relations
Human relations 595,806 651,713 611,540 40,173
Cultural activities 365,161 365,161 348,269 16,892
Total leisure, cultural and social services 11,773,262 11,998,201 11,088,967 909,234
(Continued)
136
City of San Luis Obispo, California
Budgetary Comparison Schedule
General Fund, continued
For the Fiscal Year Ended June 30, 2024
Page 3
Original
Budget
Final
Budget Actual
Variance With
Final Budget
Positive
(Negative)
Community Development:
Planning:
Commissions and communities 37,240 37,240 10,689 26,551
Community development administration 954,447 972,639 942,139 30,500
Long-range planning 989,596 1,126,347 874,873 251,474
Development review 1,942,382 1,962,136 1,521,667 440,469
Natural resource protection 1,024,108 1,169,348 1,108,266 61,082
Construction regulation:
Building and safety 3,085,371 2,741,940 2,691,300 50,640
CIP project engineering 2,897,864 3,134,176 2,803,106 331,070
Economic health:
Community promotion 411,735 427,580 412,841 14,739
Economic development 928,984 1,091,178 1,004,411 86,767
Housing 1,203,675 1,227,724 1,131,247 96,477
Total community development 13,475,402 13,890,309 12,500,539 1,389,770
General Government:
Legislation:
Council 244,185 247,207 226,753 20,454
General administration:
City administration 2,258,771 2,478,926 2,367,522 111,404
Public works administration 1,454,917 1,510,372 1,576,621 (66,249)
Legal services:
City attorney 1,425,044 1,539,502 1,470,929 68,573
City clerk services:
Administration and records 757,787 733,519 605,003 128,516
Organization support services:
Human resource administration 7,643,300 7,898,050 6,743,864 1,154,186
Finance and administration 2,384,653 2,724,046 2,088,171 635,875
Revenue management 550,776 531,091 492,769 38,322
Accounting 1,343,658 1,374,790 1,278,669 96,121
Finance non-departmental 1,100,883 979,368 299,703 679,665
Network services 3,504,523 3,527,844 3,031,188 496,656
Wellness program 53,358 53,358 49,456 3,902
Building and vehicle maintenance:
Buildings 1,534,669 1,475,594 1,450,118 25,476
Vehicle and equipment maintenance 1,453,372 1,462,995 1,391,774 71,221
Total general government before cost
reimbursement 25,709,894 26,536,663 23,072,540 3,464,123
Cost reimbursement (Note 3 to RSI)(5,511,628) (5,511,628) (5,511,628) -
Total general government 20,198,266 21,025,035 17,560,912 3,464,123
Debt Service
Principal - - 363,033 -
Interest and Fiscal Charges - - 52,508 -
(Continued)
137
City of San Luis Obispo, California
Budgetary Comparison Schedule
General Fund, continued
For the Fiscal Year Ended June 30, 2024
Page 4
Original
Budget
Final
Budget Actual
Variance With
Final Budget
Positive
(Negative)
Capital Outlay:
General government - - 250,801 (250,801)
Total capital outlay - - 250,801 (250,801)
Total Expenditures 88,357,510 92,277,633 86,550,461 6,142,713
Excess of Revenues Over Expenditures 22,430,985 21,891,215 33,517,135 11,625,920
Other Financing Sources (Uses)
Other Financing Sources – SBITA - - 137,233 137,233
Other Financing Sources – bond issuances - - 2,060,053 2,060,053
Other Financing Uses - Payment to Escrow - - (2,447,737) (2,447,737)
Transfers in 13,982,756 19,167,556 24,511,772 5,344,216
Transfers out (44,777,752) (53,044,675) (54,986,758) (1,942,083)
Total other financing uses (30,794,996) (33,877,119) (30,725,437) 3,151,682
Net Change in Fund Balance (8,364,011) (11,985,904) 2,791,698 14,777,602$
Fund Balance, Beginning of the Year 42,538,068 42,538,068 42,538,068
Fund Balance, End of Year 34,174,057$ 30,552,164$ 45,329,766$
138
City of San Luis Obispo, California
Schedule of the Changes in the Net Pension Liability and Related Ratios
Miscellaneous Agent Multiple-Employer Plan
June 30, 2024
Last 10 Years
Fiscal Year 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15
Measurement Period 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14
Total pension liability:
Service Cost 4,695,253$ 4,364,490$ 3,939,785$ 3,681,240$ 4,042,717$ 4,328,129$ 4,124,832$ 3,580,882$ 3,578,172$ 3,703,087$
Interest on total pension liability 17,884,042 17,090,797 16,589,680 16,160,011 15,531,812 14,778,918 14,197,897 13,688,523 13,193,597 12,756,967
Changes of Benefits Terms 293,205
Difference between expected and actual
experience 4,537,569 818,065 (755,414) 1,869,474 2,966,923 1,445,049 694,843 (1,160,933) (2,433,791) -
Changes in assumptions - 8,123,651 - - - (1,292,326) 11,219,603 - (3,057,724) -
Benefit payments, including refunds
of employee contributions (15,400,292) (14,509,974) (13,518,666) (12,892,847) (12,061,701) (10,740,816) (10,161,053) (9,476,508) (8,808,668) (8,258,611)
Net change in total pension liability 12,009,777 15,887,029 6,255,385 8,817,878 10,479,751 8,518,954 20,076,122 6,631,964 2,471,586 8,201,443
Total pension liability - beginning 259,710,763 243,823,734 237,568,349 228,750,471 218,270,720 209,751,766 189,675,644 183,043,680 180,572,094 172,370,651
Total pension liability - ending (a) $ 271,720,540 $ 259,710,763 $ 243,823,734 237,568,349$ 228,750,471$ 218,270,720$ 209,751,766$ 189,675,644$ 183,043,680$ 180,572,094$
Plan fiduciary net position:
Contributions - employer 11,050,993$ 16,384,823$ 8,246,755$ 7,709,918$ 9,361,882$ 6,693,987$ 6,776,849$ 6,122,173$ 5,027,356$ 4,631,254$
Contributions - employee 2,606,854 2,269,339 2,056,274 1,889,583 1,775,245 1,820,697 1,841,331 1,666,606 1,509,834 1,664,654
Net investment income 10,485,099 (13,547,758) 32,904,570 7,205,266 9,124,520 10,820,033 13,053,453 677,557 2,673,657 17,746,607
Benefit payments (15,400,292) (14,509,974) (13,518,666) (12,892,847) (12,061,701) (10,740,816) (10,161,053) (9,476,508) (8,808,668) (8,258,611)
Net plan to plan resource movement - - - - - (316) (2,936) - - -
Administrative expense (123,771) (110,778) (148,132) (203,824) (97,394) (200,184) (172,935) (72,044) (133,042) -
Other miscellaneous income/(expense)- - - - 316 (380,153) - - - -
Net change in plan fiduciary
net position 8,618,883 (9,514,348) 29,540,801 3,708,096 8,102,868 8,013,248 11,334,709 (1,082,216) 269,137 15,783,904
Plan fiduciary net position - beginning 168,315,728 177,830,076 148,289,275 144,581,179 136,478,311 128,465,063 117,130,354 118,212,570 117,943,433 102,159,529
Plan fiduciary net position - ending (b)176,934,611$ 168,315,728$ 177,830,076$ 148,289,275$ 144,581,179$ 136,478,311$ 128,465,063$ 117,130,354$ 118,212,570$ 117,943,433$
Net pension liability (asset) -
ending (a) - (b)94,785,929$ 91,395,035$ 65,993,658$ 89,279,074$ 84,169,292$ 81,792,409$ 81,286,703$ 72,545,290$ 64,831,110$ 62,628,661$
Plan fiduciary net position as a percentage of the total pension
liability 65.12%64.81%72.93%62.42%63.20%62.53%61.25%61.75%64.58%65.32%
Covered payroll 29,794,206 24,574,829 23,805,348 21,795,380 22,951,725 23,736,588 21,841,841 20,499,668 19,769,997 19,235,818
Net pension liability as percentage of covered
payroll 318.14% 371.91% 277.22% 409.62% 366.72% 344.58% 372.16% 353.89% 327.93% 325.58%
Benefit changes . The figures above include any liabilityimpact that may have resulted from voluntarybenefit changes that occurred on or before the Measurement Date. However, offers of Two Years AdditionalService Credit (a.k.a. Golden Handshakes)
that occurred after the June 30, 2019 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
Changes in assumptions .There were no assumption changes in 2023. Effective with the June 30, 2021 valuationdate (2022 measurement date), the accountingdiscount rate was reduced from 7.15% to 6.90%. In determiningthe long-termexpected rate of
return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project comp ound (geometric)
returns over the long term. The discount rate used to discount liabilitieswas informedby the long-termprojected portfolio return. In addition, demographic assumptions and the inflationrate assumption were changed in accordance with the 2021 CalPERS
Experience Study and Review of Actuarial Assumptions.The accountingdiscount rate was 7.15% for measurementrate June 30, 2017 throughJune 30, 2021, 7.65 % for measurementdates June 30, 2015 throughJune 30, 2016 and 7.50% for measurement
date June 30, 2014.
139
City of San Luis Obispo, California
Schedule of the Pension Plan Contributions
Miscellaneous Agent Multiple-Employer Plan
June 30, 2024
Last 10 Years
Fiscal Year 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15
Actuarially determined
contribution 6,938,929$ 9,573,782$ 8,851,802$ 8,246,755$ 7,709,918$ 7,093,882$ 6,693,987$ 6,776,849$ 6,122,173$ 5,027,356$
Contributions in relation to
the actuarially determined
contribution (11,022,370) (11,050,993) (16,384,823) (8,246,755) (7,709,918) (9,361,882) (6,693,987) (6,776,849) (6,122,173) (5,027,356)
Contribution deficiency
(excess)(4,083,441)$ (1,477,211)$ (7,533,021)$ -$ -$ (2,268,000)$ -$ -$ -$ -$
Covered payroll 32,157,208$ 29,794,206$ 24,574,829$ 23,805,348$ 21,795,380$ 22,951,725$ 23,736,588$ 21,841,841$ 20,499,668$ 19,769,997$
Contributions as
percentage of covered
payroll 34.28% 37.09% 66.67% 34.64% 35.37% 40.79% 28.20% 31.03% 30.97% 25.43%
Actuarial Cost Method
Amortization Method
Amortization Period
Asset Valuation Method
Inflation
Salary Increases
Payroll Growth
Discount Rate
Retirement Age
Mortality
For details, see June 30, 2021 CalPERS Funding Valuation Report
Entry Age Normal
The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2023-24 contributions rates are as follows:
The probabilities of mortality are based on the 2021 CalPERS Experience Study.
The probabilities of retirement are based on the 2021 CalPERS Experience Study.
6.80% Net of Pension Plan Investment and Administrative Expenses; includes inflation
2.800%
Varies by Entry Age and Service
2.30%
For details, see June 30, 2021 CalPERS Funding Valuation Report
140
City of San Luis Obispo, California
Schedule of the City's Proportionate Share of the Net Pension Liability
Safety Cost-Sharing Plan
As of June 30, 2024
Last 10 Years
Fiscal Year 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15
Measurement Period 2022-2023 2021-2022 2020-2021 2019-2020 2018-2019 2017-18 2016-17 2015-16 2014-15 2013-14
Proportion of the Collective Net Pension
Liability 0.69198% 0.71733% 1.08299% 0.7225% 0.7212% 1.2261% 1.1943% 1.2510% 1.3654% 1.3754%
Proportionate Share of the Collective Net
Pension Liability 86,327,322$ 82,856,965$ 58,571,330$ 78,611,581$ 73,897,967$ 71,940,534$ 71,364,346$ 64,792,760$ 56,260,280$ 51,592,420$
Covered payroll 11,235,984$ 12,207,346$ 10,744,808$ 9,488,971$ 11,197,562$ 11,246,306$ 10,614,437$ 10,643,123$ 10,849,863$ 10,768,119$
Proportionate share of the net pension
liability as percentage of covered payroll 768.31% 678.75% 545.11% 828.45% 659.95% 639.68% 672.33% 608.78% 518.53% 479.12%
Plan fiduciary net position as a percentage
of the total pension liability 76.21% 76.68% 88.29% 75.26% 75.26% 75.26% 73.31% 74.06% 78.40% 79.82%
The CalPERS mortality assumptions were adjusted in fiscal year 2019.
The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016, and then decreased from 7.65% to 7.15% in fiscal year 2018, and then decreased from 7.15% to 6.9% in fiscal year 2023.
141
Fiscal Year 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15
Contractually required
contribution (actuarially
determined)10,004,005$ 10,016,823$ 12,756,585$ 7,631,620$ 7,167,638$ 6,416,780$ 5,910,345$ 5,549,915$ 5,074,217$ 4,350,871$
Contribution in relation to
the actuarially determined
contributions (10,004,005) (10,016,823) (12,756,585) (7,631,620) (7,167,638) (8,348,780) (5,910,345) (6,299,915) (5,824,217) (4,650,871)
Contribution deficiency
(excess)-$ -$ -$ -$ -$ (1,932,000)$ -$ (750,000)$ (750,000)$ (300,000)$
Covered payroll 12,772,815$ 11,235,984$ 12,207,346$ 10,744,808$ 9,488,971$ 11,197,562$ 11,246,306$ 10,614,437$ 10,643,123$ 10,849,863$
Contributions as a
percentage of covered
payroll 78.32% 89.15% 104.50% 71.03% 75.54% 74.56% 52.55% 59.35% 54.72% 42.87%
The Plan’s proportionate share of aggregate contributions may not match the actual contributions made by the employer during the measurement period. The Plan’s proportionate share of
aggregate contributions is based on the Plan’s proportion of fiduciary net position as well as any additional side fund (or unfunded liability) contributions made by the employer during the
measurement period.
City of San Luis Obispo, California
Schedule of the City's Pension Contributions
Safety Cost-Sharing Plan
As of June 30, 2024
Last 10 Years
142
Fiscal Year 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18
Measurement Period 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17
Total OPEB liability:
Service Cost 493,787$ 480,571$ 423,364$ 415,244$ 477,538$ 463,629$ 450,125$
Interest on total OPEB liability 940,850 898,021 867,422 841,590 935,528 891,794 856,436
Difference between expected and
actual experience (2,105,353) - 349,893 - (2,085,962) - -
Changes in assumptions (291,401) - 507,115 (203,416) 21,857 - -
Benefit payments, including refunds
of employee contributions (717,143) (695,937) (678,789) (678,882) (677,824) (765,000) (827,500)
Net change in total OPEB liability (1,679,260) 682,655 1,469,005 374,536 (1,328,863) 590,423 479,061
Total OPEB liability - beginning 14,918,389 14,235,734 12,766,729 12,392,193 13,721,056 13,130,633 12,651,572
Total OPEB liability - ending (a)13,239,129$ 14,918,389$ 14,235,734$ 12,766,729$ 12,392,193$ 13,721,056$ 13,130,633$
Plan fiduciary net position:
Contributions - employer 1,427,129$ 1,309,367$ 921,000$ 1,656,882$ 677,824$ 1,221,000$ 1,493,996$
Net investment income 619,941 (1,395,486) 2,196,724 259,704 392,852 439,828 469,883
Benefit payments (717,143) (695,937) (678,789) (678,882) (677,824) (765,000) (827,500)
Administrative expense (8,784) (7,070) (7,235) (3,472) (1,364) (10,170) (2,387)
Net change in plan fiduciary
net position 1,321,143 (789,126) 2,431,700 1,234,232 391,488 885,658 1,133,992
Plan fiduciary net position
- beginning 9,633,672 10,422,798 7,991,098 6,756,866 6,365,378 5,479,720 4,345,728
Plan fiduciary net position
- ending (b)10,954,815$ 9,633,672$ 10,422,798$ 7,991,098$ 6,756,866$ 6,365,378$ 5,479,720$
Plan net OPEB liability
- ending (a) - (b)2,284,314$ 5,284,717$ 3,812,936$ 4,775,631$ 5,635,327$ 7,355,678$ 7,650,913$
Plan fiduciary net position as a
percentage of the total OPEB liability 82.75% 64.58%73.22% 62.59% 54.53% 46.39% 41.73%
Covered-employee payroll 37,590,668$ 38,691,777$ 40,691,438$ 33,077,056$ 33,429,600$ 33,790,437$ 33,722,592$
Plan net OPEB liability as percentage
of covered payroll 6.08% 13.66% 9.37% 14.44% 16.86% 21.77% 22.69%
Changes in assumptions. As of June 30, 2023 measurement, the assumption updated the PEMHCA minimum and medical trend. No changes in June
30, 2022 measurement date. As of June 30, 2021 measurement date, the assumption adds 1. Discount rate was updated based on newer capital
market assumptions 2. Medical plan election at retirement assumption was updated 3. Inflation rate decreased from 2.75% to 2.50%, which
decreased the discount rate, medical trend, and aggregate salary increases by 0.25% 4. Demographic assumptions updated to CalPERS 2000-2019
Experience Study 5. Mortality improvement scale was updated to Scale MP-2021. As of June 30, 2020 measurement date, the assumption removed
the ACA excise tax. As of June 30, 2019 measurement date, the mortality improvement scale was updated to Scale MP-2019. Medical plan at
retirement estimated using weighted premium of recent retirees; updated based on retirements during 2015-2019.
* Fiscal year 2018 was the first year of implementation. Information is required only for measurement periods for which GASB 75 is applicable.
Benefit changes . The figures shown do not include any liability impact that may have resulted from plan changes which occurred after the June 30,
2022 measurement date.
Prepared for the City of San Luis Obispo OPEB Plan
an Agent Multiple-Employer Defined Benefit OPEB Plan
As of June 30, 2024
Last 10 Years *
Schedule of Changes in the Net OPEB Liability and Related Ratios
143
Fiscal Year 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18
Actuarially determined
contribution 1,085,000$ 1,055,000$ 1,309,367$ 921,000$ 1,190,000$ 1,154,000$ 1,221,000$
Contributions in
relation to the
actuarially determined
contributions (740,550) (1,427,129) (1,309,367) (921,000) (1,656,882) (677,824) (1,221,000)
Contribution
deficiency (excess)344,450$ (372,129)$ -$ -$ (466,882)$ 476,176$ -$
Covered-employee
payroll 43,414,242$ 37,590,668$ 38,691,777$ 40,691,438$ 33,077,056$ 33,429,600$ 33,790,437$
percentage of covered
payroll 1.71% 2.81% 3.38% 2.26% 3.60% 3.45% 3.61%
Contributions paid as of June 30, 2024 are deferred to June 30, 2025.
Valuation date
Actuarial Cost Method
Amortization Method
Amortization Period
Asset Valuation Method
Discount Rate
General Inflation
Medical Trend
Mortality
Mortality Improvement
6.25%
2.50%
Non-Medicare - 6.50% for 2023, decreasing to an ultimate rate of 3.75% in 2076
Medicare - 5.65% for 2023, decreasing to an ultimate rate of 3.75% in 2076
CalPERS 2000-2019 experience study
Post-retirement mortality projected fully generational with Scale MP-2021
June 30, 2021
Entry Age Normal, Level % of pay
Level % of pay
10.1-year average period for FY2023/24
Investment gains and losses spread over 5-year rolling period
The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2023-24 are as follows:
* Fiscal year 2018 was the first year of implementation. Information is required only for measurement periods for which GASB 75 is
applicable.
Prepared for the City of San Luis Obispo Miscellaneous Plan
an Agent Multiple-Employer Defined Benefit OPEB Plan
As of June 30, 2024
Last 10 Years *
Schedule of Employer OPEB Contributions
144
City of San Luis Obispo, California
Notes to Required Supplementary Information
June 30, 2024
Budgetary Comparison Schedule
1. The budget is prepared using the modified accrual basis of accounting consistent with U.S. generally accepted accounting
principles.
2. Outstanding encumbrances from the prior fiscal year are not reflected in the original budget column but are included in the
final budget amounts.
3. All the City’s general government and engineering programs are initially accounted and budgeted for in the General Fund.
However, certain of these support service programs also benefit the City’s enterprise and agency fund operations, and
accordingly, transfers are made from these funds to reimburse the General Fund for these services. The transfers are based
on a Cost Allocation Plan prepared for this purpose which distributes the shared costs in a uniform, consistent manner in
accordance with U.S. generally accepted accounting principles.
Excess of Expenditures Over Appropriations
1. At June 30, 2024 expenditures exceeded appropriations in the General Fund as noted below.
Department/Division Budget Variance
Police Protection:
Investigations 35,387$
Patrol services 437,416
Fire and environmental safety:
Emergency response 179,197
Fire Apparatus Services 16,952
Training 12,456
Culture and Recreation:
Aquatics/Sinsheimer park facilities 41,659
Special events 333
General Administration:
Public works administration 66,249
Capital Outlay:
General government 250,801
145
146
OTHER SUPPLEMENTARY INFORMATION
AND COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
147
148
Revenues Actual
Local Transaction and Use Tax 30,596,293$
30,596,293$
Expenditure Allocations by Priority
Address Homelessness 796,897$
Community Safety and Emergency Preparedness 6,852,418
Creek and Flood Protection 3,893,150
Economic Development and Business Retention 425,000
Open Space/Natural Areas Preservation and Maintenance 1,587,865
Other Services and Projects 5,535,379
Protect Financial Stability 515,519
Safe and Clean Public Areas 765,767
Street Maintenance and Transportation (incl bike and ped improvements) 12,137,815
Youth/Senior Services and Recreation Facilities 1,617,644
34,127,454$
Net Change in Fund Balance (3,531,160)$
Fund Balance Beginning of Year 5,307,988
Fund Balance End of Year 1,776,828$
City of San Luis Obispo
Local Transaction Tax Measure Funding Schedule
For the Fiscal Year Ended June 30, 2024
149
Revenues Budget Actual
Local Transaction and Use Tax 30,596,293$ 30,596,293$
30,596,293$ 30,596,293$
Expenditures
Transfer Out for Operating Programs:
Address Homelessness 796,897$ 796,897$
Community Safety and Emergency Preparedness 2,491,203 2,491,203
Creek and Flood Protection 638,150 638,150
Economic Development and Business Retention 150,000 150,000
Open Space/Natural Areas Preservation and Maint. 622,865 622,865
Other Services and Projects 141,500 141,500
Protect Financial Stability 515,519 515,519
Safe and Clean Public Areas 395,682 395,682
Street Maintenance and Transportation 672,348 672,348
Youth/Senior Services and Recreation Facilities 565,882 565,882
6,990,046$ 6,990,046$
Transfer Out for 2023-24 Capital Projects
Community Safety and Emergency Preparedness 4,361,215$ 4,361,215$
Creek and Flood Protection 3,255,000 3,255,000
Economic Development and Business Retention 275,000 275,000
Open Space/Natural Areas Preservation and Maintenance 965,000 965,000
Other Services and Projects 5,393,879 5,393,879
Safe and Clean Public Areas 370,085 370,085
Street Maintenance and Transportation (incl bike and ped improvements) 11,465,467 11,465,467
Youth/Senior Services and Recreation Facilities 1,051,762 1,051,762
27,137,408$ 27,137,408$
Net Change in Fund Balance (3,531,160)$
Fund Balance Beginning of Year 5,307,988$
Fund Balance End of Year 1,776,828$
City of San Luis Obispo
Local Transaction Tax Measure Funding Schedule
For the Fiscal Year Ended June 30, 2024
150
Page 2
Capital Programs: Budget* Actual Encumbrances Carryover
Community Safety and Emergency Preparedness
Fleet Replacement - Fire 677,983 128,855 15,040 534,087
Fire Station #2 - Parking Lot Maintenance 50,000 - - 50,000
Fire Hydrant Replacement 54,756 54,756 - -
Fire Station #3 & #4 Remodel Space Study and Design 300,000 35,261 43,943 220,796
Public Safety Center - Police Station Replacement 30,247 - - 30,247
Major Facility Replacement - Police 276,142 151,953 124,189 -
IT Replacements 53,457 43,472 4,413 5,572
Major Facility Maintenance 371,701 371,269 432 -
Police - Information Technology 1,197,714 274,374 10,740 912,599
Fleet Replacement - Public Works 100,000 3,882 4,687 91,431
Fleet Replacement - Police 477,671 214,565 247,165 15,941
Righetti Hillside Slide Repair 1,860,000 75,255 65,777 1,718,969
Storm Response & Recovery 3,590,828 2,290,056 - 1,300,772
9,040,498$ 3,643,699$ 516,386$ 4,880,413
Creek and Flood Protection
Creek Bank Stabilization Near Pismo and Johnson 1,873,029 1,659,502 68,647 144,881
Fleet Replacement - Public Works 630,000 626,011 - 3,989
Johnson - Iris to Bishop Pipeline Replacement 165,000 97,018 1,502 66,480
Ruth and Iris Culvert Replacement 321,656 290,830 - 30,826
Storm Drainage Infrastructure Replacement 1,282,596 125,768 7,580 1,149,249
4,272,281$ 2,799,128$ 77,729$ 1,149,249
Economic Development and Business Retention
Additional Banner Arms, Bench Arm Rests, Signs 110,524 20,967 10,936 78,622
Annual Public Art Maintenance and Projects 202,657 155,863 5,079 41,714
Open SLO 71,189 11,112 - 60,078
Downtown Zig-Zag Lighting 250,000 27,000 37,474 185,526
Downtown Renewal 255 - - 255
Mission Plaza Maintenance Improvements 10,670 665 7,336 2,669
Public Art Installation 417,704 32,863 29,889 354,952
1,062,999$ 248,470$ 90,713$ 368,864
Open Space/Natural Areas Preservation and Maintenance
Open Space Acquisition 647,876 104,885 20,059 522,932
Open Space Maintenance 302,831 169,560 - 133,271
Pismo Street Retaining Wall 200,000 21,806 168,899 9,295
Urban Forest Maintenance 460,885 455,353 - 5,533
Laguna Lake Dog Park 279,393 23,164 - 256,229
Laguna Lake Dredging 8,146 6,731 - 1,416
1,899,131$ 781,498$ 188,959$ 928,674
City of San Luis Obispo
Local Transaction Tax Measure Funding Schedule, continued
Local Revenue Measure Funded Projects
Includes Legacy Projects and projects funded by Capital Reserve
151
Page 3
Capital Programs: Budget* Actual Encumbrances Carryover
Other Services and Projects
CIP Project Delivery Augmentation 6,434 6,434 - -
Electric Vehicle Charging Stations 362,535 - 30,053 332,482
Major Facility Maintenance 953,384 236,935 126,445 590,005
Righetti Park Investment 304,637 - - 304,637
KVEC Tower 171,750 - - 171,750
Fleet Replacement - Citywide 233,023 1,000 117,401 114,622
Fleet Replacement - Public Works 719,444 290,614 - 428,829
Corp Yard Fuel Island Siding - - - -
2,751,206$ 534,982$ 273,899$ 1,942,324
Safe and Clean Public Areas
IT Replacement 84,415 - - 84,415
Bob Jones Trail and Railroad Safety Trail Solar Lightning 1,449,941 50,400 1,160 1,398,381
Curb Ramps and Sidewalks Replacements 304,947 227,513 36,947 40,487
Mission Plaza Concept Plan Implementation 2,230,965 135,900 541,827 1,553,238
Park Major Maintenance & Repairs: Mission Plaza Railin 35,000 - - 35,000
Street and Pathway Lighting 131,425 13,091 - 118,334
Pedestrian Crossing Improvements 34,847 - 32,509 2,338
Railroad Safety Trail Taft to Pepper 27,150 - - 27,150
Pedestrian Crosswalk Beacon on Ramona 13,255 - 13,255 -
Area 6 & 7 Curb Ramps 2,610 - 2,610 -
4,314,554$ 426,904$ 628,308$ 3,174,928
Street Maintenance and Transportation
Active Transportation Plan Implementation 42,371 33,510 5,117 3,743
ATP - Higuera Complete Street Project 1,137,019 355,771 22,555 758,693
ATP - Foothill Boulevard Complete Street Project 200,000 44,915 52,975 102,110
ATP - Orcutt Road Railroad Crossing Upgrades 200,000 - - 200,000
Neighborhood Traffic Improvements 286,709 196,368 50,151 40,191
Prado Road Bridge & Road Widening 145,602 43,101 1 102,500
Prado Road Interchange 2,344,583 13,854 15,261 2,315,468
Traffic Safety Report Improvements 30,000 19,861 - 10,139
Traffic Signs & Striping Maintenance 75,332 6,811 - 68,521
Transportation Safety & Operations 143,431 9,373 65,053 69,006
North Chorro Neighborhood Greenway - Phase 2 3,707,388 3,090,133 227,180 390,074
Development Agreements 1,344,255 498,394 845,862 -
Orcutt/Tank Farm Roundabout Construction 45,770 20,432 15,270 10,068
Monterey at Santa Rosa Paving and Signal Project 256,610 256,610 - -
Roadway Sealing 2022 231,150 177,338 25,799 28,013
2022 Street Reconstruction and Resurfacing 588,071 118,286 163,898 305,887
Marsh and Santa Rosa Bridge Replacement 61 - 61 -
Mid-Higuera Bypass 1,158,462 581,682 188 576,592
Sewer Replacement Chorro & Murray 80,000 - - 80,000
South Street Median Landscaping 5,312 650 3,810 852
2023 Streets Reconstruction & Resurfacing - Arterials 8,501,400 7,430,516 381,210 689,674
Roadway Sealing 2024 130,775 - - 130,775
Sacramento Drive Paving 220,000 - - 220,000
California Taft Roundabout 647,639 141,719 45,538 460,383
21,521,941$ 13,039,325$ 1,919,929$ 6,562,688
City of San Luis Obispo
Local Transaction Tax Measure Funding Schedule, continued
Local Revenue Measure Funded Projects
Includes Legacy Projects and projects funded by Capital Reserve
152
Page 4
Capital Programs: Budget* Actual Encumbrances Carryover
Youth/Senior Services and Recreation Facilities
Laguna Lake Golf Course Maintenance 51,570 2,945 - 48,625
Major Facility Maintenance 335,000 178,552 24,335 132,113
Playground Equipment Replacement 252,891 61,883 44,161 146,846
Orcutt Area - Linear Park Planning and Construction 787,132 - 7,802 779,329
Parking Lot Maintenance 465,553 21,834 - 443,719
Fleet Replacement - Parks and Recreation 171,617 115,246 11,434 44,938
Parks and Recreation Master Plan Implementation 43,729 43,729 - -
Parks Major Maintenance 1,487,668 716,129 85,237 686,303
Golf Course Pro Shop Flood Damage Repairs 50,181 13,123 - 37,058
North Broad Street Neighborhood Park 359,604 162,558 31,845 165,201
4,004,944$ 1,315,998 204,814$ 2,484,133
Total Capital Expenditures 48,867,556$ 22,790,005$ 3,900,737$ 21,491,272
*This Budget amount also includes carryover from prior years.
City of San Luis Obispo
Local Transaction Tax Measure Funding Schedule, continued
Local Revenue Measure Funded Projects
Includes Legacy Projects and projects funded by Capital Reserve
153
154
City of San Luis Obispo, California
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
The City maintains the following nonmajor governmental funds:
Special Revenue Funds
The City has established the following ten special revenue funds in order to account for the proceeds from revenue
sources that are restricted or committed to expenditures for specified purposes. Budgets are prepared using the
modified accrual basis of accounting consistent with U.S. generally accepted accounting principles.
Downtown Business Improvement District (BID) Fund . This fund has been established to account for the receipt
of a surcharge derived from a supplemental assessment upon businesses within the Downtown Business
Improvement District’s boundaries. Pursuant to the provisions of the Municipal Code, this surcharge is equal to
$150.00 per year. Expenditures from the fund are limited to four basic purposes: decorating public places within the
downtown; promoting public events in the downtown core; promoting trade activities; and improving parking in the
Transportation Development Act (TDA) Fund . The State of California has designated 1/4% of the sales tax levied
statewide for local transportation purposes. Funding for this program was provided during the 1971 legislative
session with the enactment of the Transportation Development Act, which extended the State sales tax to include
purchases of gasoline. Revenues allocated to the City of San Luis Obispo under this program are divided into two
categories: Article 3 funds, which are restricted for the improvement and maintenance of street systems including
pedestrian and bicycle facilities; and Article 4 funds, which are restricted for public transit systems and are recorded
directly in the Transit Fund. Under the City's Financial Plan policies, all TDA Article 3 revenues are allocated for
alternative transportation purposes. The purpose of this fund is to account for these revenues.
Tourism Business Improvement District (BID) Fund . This fund has been established to account for the receipt of a
surcharge derived from assessments upon the lodging establishments within the City. The surcharge is equal to 2%
of gross room rents. Expenditures from the fund are limited to the marketing and promotion of tourism.
Gas Tax Fund . Portions of the tax rate per gallon levied by the State of California on all gasoline purchases are
allocated to cities throughout the State on a population basis. These funds are restricted for expenditures by the State
of California for street-related purposes only. Under the City's Financial Plan policies, all gas tax revenues are
transferred to the General Fund for street maintenance purposes.
Community Development Block Grant (CDBG) Fund.This fund has been established to account for federal funds
received by the City specifically to benefit low and moderate income persons, aid in the elimination of blight, and
meet other community development needs as allowed by block grant regulations.
Law Enforcement Grants Fund . This fund has been established to account for public safety grant funds.
Public Arts Contribution Fund.Public contributions to the public art program are accounted for in this fund along
with the expenditures for public art projects funded by this revenue source.
Avila Ranch Fund.This fund has been established to account for the ongoing funding received as a special property
tax assessment and the associated infrastructure and service improvements of the Avila Ranch Community Facilities
District.
SB1 Road Repair Fund.This fund has been established to account for stable and ongoing funding for maintenance
and improvements to transportation infrastructure as provided through Senate Bill 1 (2017), the Road Repair and
Accountability Act.
155
City of San Luis Obispo, California
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
SB1186 CASP Certify Fund . This fund has been established as Senate Bill 1186 (2012) requires local agencies to
collect an additional fee when issuing a permit for the purpose of increasing certified access specialist (CASp)
services and compliance with construction-related accessibility requirements. The first priority is to spend the funds
on the training and retention of CASps in order to meet the needs of the public in the jurisdiction. The funds may
also be spent on activities or programs that facilitate accessibility compliance.
Affordable Housing BEGIN Loan Fund.This fund has been established to account for affordable housing loans
that were provided under the State's BEGIN program.
Avila Ranch DPA Fund.This fund has been established to account for the home buyer down payment assistance
program required by the Avila Ranch development.
Capital Projects Funds
The following eleven capital project funds are used by the City to account for the financial resources used in the
construction or acquisition of major capital facilities or equipment (with the exception of those financed primarily
through proprietary funds). Budgets are prepared using the modified accrual basis of accounting consistent with U.S.
generally accepted accounting principles on a multi-year project basis. Accordingly, budgetary comparisons for the
capital projects funds are not presented in the accompanying other supplementary information.
Parkland Development Fund - Quimby . This fund was established to account for parkland in-lieu fees in
accordance with the AB 1191 Act, also known as the Quimby Act; it authorizes the City to require residential
subdivisions to dedicate land for parks or pay fees in lieu of dedication. Impact fees may be collected to pay for park
land (for projects not involving a subdivision), park improvements, community centers, recreation facilities, trails,
open space, etc.
Open Space Protection Fund . This fund was established to account for projects funded as part of the City’s open
space protection program to enhance open space and agricultural conservation on lands within and surrounding the
City, improve passive recreational and nature study opportunities, and restore and enhance wildlife habitat. Projects
in this fund will be financed with General Fund contributions, outside contributions, and State and Federal grants.
Airport Area Impact Fee Fund.This fund was established to account for interim annexation fees collected for the
specific plan and related infrastructure master plans for annexing the airport area to the City.
Los Osos Valley Road (LOVR) Sub-Area Fee Fund . This fund was established to account for the LOVR add-on
impact fee created for the expansion of capacity for the LOVR interchange at US 101 for construction, project
management, and inspection. Though the project has been completed, the City has an existing reimbursement
agreement with Costco Wholesale Corporation for improvements already constructed at the LOVR interchange.
Fleet Replacement Fund . This fund was established to account for the financing and replacement of vehicles for all
General Fund programs of the City. Financing is primarily provided through operating transfers from the General
Fund as well as from interest earnings and sales of surplus property.
Information Technology Replacement Fund . This fund was established in FY 12-13 to account for the financing
and replacement of information technology for all General Fund programs of the City. Financing is primarily
provided through operating transfers from the General Fund as well as from interest earnings.
156
City of San Luis Obispo, California
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
Major Facility Replacement Fund.This fund accounts for the financing and replacement of major facilities for all
General Fund programs of the City. Financing is primarily provided through operating transfers from the General
Fund as well as from interest earnings.
Affordable Housing Program Fund . This fund accumulates revenues from inclusionary housing fees for capital
projects related to affordable housing programs and projects.
Transportation Impact Fee Fund.This fund was established to account for construction projects related to
transportation facilities and travel lanes within the City that will be financed primarily with transportation impact
f
Infrastructure Fund . This fund was established to provide financing to infrastructure projects that have a wide
community benefit. Financing is primarily provided through operating transfers from the General Fund.
Parkland Development Impact Fee – Citywide Fund . This fund was created to account for impact fees that were
established for the purpose of acquisition and improvement of community parks and existing park facilities intended
for access and use by the entire city.
OASP Park Development Fund . This fund was established to account for impact fees created for the purpose of
acquisition and improvement of community parks and existing park facilities intended for access and use by the
entire city but more specifically by the Orcutt Area residents as the location of this park projects are in the Orcutt
MASP Park Development Fund . This fund was established to account for impact fees created for the purpose of
acquisition and improvement of community parks and existing park facilities intended for access and use by the
entire city but more specifically by the Margarita Area residents as the location of this park projects are in the
Margarita Area.
OASP Transportation Impact Fee Fund . This fund was established to account for construction projects that will be
financed primarily with transportation impact fees within the Orcutt Area Specific Plan in accordance with its
Development Agreement.
Fire Impact Fee Fund .This fund was established to account for fire department related construction projects that
will be financed primarily with public safety development impact fees.
Police Impact Fee Fund . This fund was established to account for police department related construction projects
that will be financed primarily with public safety development impact fees.
Park Improvement Impact Fee – Citywide Fund . This fund was established to account for construction projects
related to park improvements that will be financed primarily with park in-lieu fees.
SLR Transportation Impact Fee . This fund was established to account for construction projects that will be
financed primarily with transportation impact fees within the San Luis Ranch development, in accordance with its
Development Agreement.
Public Safety Equipment Replacement Fund.This fund accounts for the financing and replacement of public
safety equipment. Financing is primarily provided through operating transfers from the General Fund as well as
from interest earnings.
157
City of San Luis Obispo, California
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
Debt Service Fund
The City has established one debt service fund to account for the payment and accumulation of resources related to
governmental activities long-term debt principal and interest for the following debt issues. Budgets are prepared
using the modified accrual basis of accounting consistent with U.S. generally accepted accounting principles. The
following governmental activity debt issuances are serviced by this fund.
Capital Improvement Board 2012 Refunding Lease Revenue Bonds . In May 2012 the Board issued $5,050,000 of
2012 Lease Revenue Refunding Bonds. These bonds were issued to refinance the outstanding 2001 Lease Revenue
Bonds, Series C, which will be redeemed on December 1, 2029. The 2001 bonds were used to purchase property and
build athletic fields; purchase property for police station expansion; purchase Downtown Plan properties.
The Board has entered into a lease agreement with the City under which the City is responsible for making lease
payments to fund the annual debt service requirements.
Public Financing Authority 2014 Lease Revenue Bonds . In 2014 the Authority issued $7,580,000 of 2014 Lease
Revenue Bonds. These bonds were issued to finance the expansion of the Los Osos Valley Road interchange at U.S.
101. Debt service related to the interchange is recorded in the Debt Service Fund.
The Authority has entered into a lease agreement with the City under which the City is responsible for making lease
payments to fund the annual debt service requirements.
Public Financing Authority 2018 Lease Revenue Bonds . In 2018 the Authority issued $11,072,775 of 2018 Lease
Revenue Refunding Bonds. These bonds were issued to refinance the outstanding 2005 Revenue Bonds, 2006 Lease
Revenue Bonds, and 2009 Lease Revenue Bonds. The original bonds were used to accomplish several high priority
capital improvement projects including the headquarters fire station, seismic safety and HVAC improvements to
City Hall, Mission Plaza expansion, and various properties and street lighting system purchases. Further, the bonds
were used to purchase a parking structure and office building and to the finance the construction of the Public Safety
Communications and Emergency Operations Center project.
The Authority has entered into a lease agreement with the City under which the City is responsible for making lease
payments to fund the annual debt service requirements.
158
159
City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
Downtown BID
Transportation
Development
Act (TDA) Tourism BID Gas Tax
Assets
Cash and investment 179,548$ 33,132$ 1,443,947$ -$
Accounts receivable - - 279,376 -
Tax receivable - - - -
Accrued interest receivable - - 6,051 -
Cash held by fiscal agent - - - -
Loans receivable - - - -
Total assets 179,548$ 33,132$ 1,729,374$ -$
Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:
Accounts payable 131,953$ -$ 185,073$ -$
Accrued liabilities - - 6,061 -
Due to other funds - - - -
Unearned revenue 181,157 - 14,584 -
Total liabilities 313,110 - 205,718 -
Deferred Inflows of Resources:
Unavailable revenue - - - -
Fund balance:
Restricted for:
Public safety programs - - - -
Transportation projects - 33,132 - -
Affordable housing programs - - - -
Parkland development programs - - - -
Public art programs - - - -
Tourism programs - - 1,523,656 -
Infrastructure improvement - - - -
Committed to:
Public safety program - - - -
Assigned to:
Contingency fund - - - -
Subsequent years expenditures - - - -
Unassigned (133,562) - - -
Total fund balance (133,562) 33,132 1,523,656 -
Total liabilities, deferred inflows of
resources, and fund balance 179,548$ 33,132$ 1,729,374$ -$
(Continued)
June 30, 2024
Special Revenue Funds
160
City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2024
Community
Development Block
Grant (CDBG)
Law Enforcement
Grants
Public Art
Contributions Avila Ranch CFD
Assets
Cash and investment 102,233$ 49,753$ 1,525,935$ 371,388$
Accounts receivable 31,885 1,208 - 3,580
Tax receivable - - - -
Accrued interest receivable 755,113 188 6,839 1,674
Cash held by fiscal agent - - - -
Loans receivable 1,112,944 - - -
Total assets 2,002,175$ 51,149$ 1,532,774$ 376,642$
Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:
Accounts payable -$ -$ 6,186$ 8,610$
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - 386 - -
Total liabilities - 386 6,186 8,610
Deferred Inflows of Resources:
Unavailable revenue 755,113 - - -
Fund balance:
Restricted for:
Public safety programs - 50,763 - -
Transportation projects - - - -
Affordable housing programs 1,247,062 - - -
Parkland development programs - - - -
Public art programs - - 1,526,588 -
Tourism programs - - - -
Infrastructure improvement - - - 368,032
Committed to:
Public safety program - - - -
Assigned to:
Contingency fund - - - -
Subsequent years expenditures - - - -
Unassigned - - - -
Total fund balance 1,247,062 50,763 1,526,588 368,032
Total liabilities, deferred inflows of
resources, and fund balance 2,002,175$ 51,149$ 1,532,774$ 376,642$
(Continued)
Special Revenue Funds
161
City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2024
SB1 Road Repair
SB1186 CASP
Certify
Affordable
Housing BEGIN
Loan Fund
Avila Ranch DPA
Fund
Assets
Cash and investment 106,336$ 175,664$ 7,057$ -$
Accounts receivable - - - -
Tax receivable 214,923 - - -
Accrued interest receivable 572 819 87,050 -
Cash held by fiscal agent - - - -
Loans receivable - - 420,335 -
Total assets 321,831$ 176,483$ 514,442$ -$
Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:
Accounts payable 38,745$ -$ -$ -$
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - - - -
Total liabilities 38,745 - - -
Deferred Inflows of Resources:
Unavailable revenue - - 87,017 -
Fund balance:
Restricted for:
Public safety programs - - - -
Transportation projects 283,086 176,483 - -
Affordable housing programs - - 427,425 -
Parkland development programs - - - -
Public art programs - - - -
Tourism programs - - - -
Infrastructure improvement - - - -
Committed to:
Public safety program - - - -
Assigned to:
Contingency fund - - - -
Subsequent years expenditures - - - -
Unassigned - - - -
Total fund balance 283,086 176,483 427,425 -
Total liabilities, deferred inflows of
resources, and fund balance 321,831$ 176,483$ 514,442$ -$
(Continued)
Special Revenue Funds
162
City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2024
Parkland
In-Lieu Fee
Open Space
Protection
Airport Area
Impact Fee
LOVR Sub-Area
Fee
Assets
Cash and investment 2,693,307$ 13,634$ 464,136$ 614,213$
Accounts receivable - - - -
Tax receivable - - - -
Accrued interest receivable 30,181 64 2,571 2,574
Cash held by fiscal agent - - - -
Loans receivable 227,589 - - -
Total assets 2,951,077$ 13,698$ 466,707$ 616,787$
Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:
Accounts payable 465,264$ -$ 75,114$ -$
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - - - -
Total liabilities 465,264 - 75,114 -
Deferred Inflows of Resources:
Unavailable revenue 244,216 - - -
Fund balance:
Restricted for:
Public safety programs - - - -
Transportation projects - - 391,593 616,787
Affordable housing programs - - - -
Parkland development programs 2,241,597 - - -
Public art programs - - - -
Tourism programs - - - -
Infrastructure improvement - - - -
Committed to:
Public safety program - - - -
Assigned to:
Contingency fund - - - -
Subsequent years expenditures - 13,698 - -
Unassigned - - - -
Total fund balance 2,241,597 13,698 391,593 616,787
Total liabilities, deferred inflows of
resources, and fund balance 2,951,077$ 13,698$ 466,707$ 616,787$
(Continued)
Capital Projects Funds
163
City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2024
Fleet Replacement
Info Tech
Replacement
Affordable
Housing
Transportation
Impact Fee
Assets
Cash and investment 2,652,035$ 3,555,900$ 28,310$ 6,074,273$
Accounts receivable - - 18,722 -
Tax receivable - - - -
Accrued interest receivable - - 2,593,322 194,865
Cash held by fiscal agent - - - -
Loans receivable - - 8,560,688 1,401,928
Total assets 2,652,035$ 3,555,900$ 11,201,042$ 7,671,066$
Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:
Accounts payable 68,641$ 10,611$ -$ 5,543$
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - 562,650 - -
Total liabilities 68,641 573,261 - 5,543
Deferred Inflows of Resources:
Unavailable revenue - - 2,660,312 1,565,360
Fund balance:
Restricted for:
Public safety programs - - - -
Transportation projects - - - 6,100,163
Affordable housing programs - - 8,540,730 -
Parkland development programs - - - -
Public art programs - - - -
Tourism programs - - - -
Infrastructure improvement - - - -
Committed to:
Public safety program - - - -
Assigned to:
Contingency fund 500,000 400,000 - -
Subsequent years expenditures 2,083,394 2,582,639 - -
Unassigned - - - -
Total fund balance 2,583,394 2,982,639 8,540,730 6,100,163
Total liabilities, deferred inflows of
resources, and fund balance 2,652,035$ 3,555,900$ 11,201,042$ 7,671,066$
(Continued)
Capital Projects Funds
164
City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2024
Infrastructure
Parkland
Development
Impact Fee-
Citywide OASP Park MASP Park
Assets
Cash and investment 13,320,489$ 1,241,109$ 2,251,994$ 3,277,271$
Accounts receivable - - - -
Tax receivable - - - -
Accrued interest receivable - 89,344 10,463 15,289
Cash held by fiscal agent - - - -
Loans receivable - 446,826 - -
Total assets 13,320,489$ 1,777,279$ 2,262,457$ 3,292,560$
Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:
Accounts payable -$ -$ 146,443$ -$
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue 105,106 - - -
Total liabilities 105,106 - 146,443 -
Deferred Inflows of Resources:
Unavailable revenue - 530,519 - -
Fund balance:
Restricted for:
Public safety programs - - - -
Transportation projects - - - -
Affordable housing programs - - - -
Parkland development programs - 1,246,760 2,116,014 3,292,560
Public art programs - - - -
Tourism programs - - - -
Infrastructure improvement - - - -
Committed to:
Public safety program - - - -
Assigned to:
Contingency fund - - - -
Subsequent years expenditures 13,215,383 - - -
Unassigned - - - -
Total fund balance 13,215,383 1,246,760 2,116,014 3,292,560
Total liabilities, deferred inflows of
resources, and fund balance 13,320,489$ 1,777,279$ 2,262,457$ 3,292,560$
(Continued)
Capital Projects Funds
165
City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2024
OASP
Transportation
Impact Fee Fire Impact Fee Police Impact Fee
Park Improvement
Impact Fee-
Citywide
Assets
Cash and investment 1,466,404$ 396,772$ 446,404$ 2,155,209$
Accounts receivable - - - 60,756
Tax receivable - - - -
Accrued interest receivable 6,841 13,797 8,315 19,857
Cash held by fiscal agent - - - -
Loans receivable - 102,569 85,280 203,154
Total assets 1,473,245$ 513,138$ 539,999$ 2,438,976$
Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:
Accounts payable -$ -$ -$ 49,277$
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - - - -
Total liabilities - - - 49,277
Deferred Inflows of Resources:
Unavailable revenue - 114,574 91,580 213,114
Fund balance:
Restricted for:
Public safety programs - 398,564 448,419 -
Transportation projects 1,473,245 - - -
Affordable housing programs - - - -
Parkland development programs - - - 2,176,585
Public art programs - - - -
Tourism programs - - - -
Infrastructure improvement - - - -
Committed to:
Public safety program - - - -
Assigned to:
Contingency fund - - - -
Subsequent years expenditures - - - -
Unassigned - - - -
Total fund balance 1,473,245 398,564 448,419 2,176,585
Total liabilities, deferred inflows of
resources, and fund balance 1,473,245$ 513,138$ 539,999$ 2,438,976$
(Continued)
Capital Projects Funds
166
City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2024
SLR
Transportation
Impact Fee
Public Safety
Equipment
Replacement Fund Debt Service
Total Nonmajor
Governmental
Funds
Assets
Cash and investment 2,148,160$ 429,315$ -$ 47,223,928$
Accounts receivable - - - 395,527
Tax receivable - - - 214,923
Accrued interest receivable 9,663 - - 3,855,452
Cash held by fiscal agent - - 8,888 8,888
Loans receivable - - - 12,561,313
Total assets 2,157,823$ 429,315$ 8,888$ 64,260,031$
Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:
Accounts payable -$ 344$ 844$ 1,192,648$
Accrued liabilities - - - 6,061
Due to other funds - - 166,601 166,601
Unearned revenue - - - 863,883
Total liabilities - 344 167,445 2,229,193
Deferred Inflows of Resources:
Unavailable revenue - - - 6,261,805
Fund balance:
Restricted for:
Public safety programs - - - 897,746
Transportation projects 2,157,823 - - 11,232,312
Affordable housing programs - - - 10,215,217
Parkland development programs - - - 11,073,516
Public art programs - - - 1,526,588
Tourism programs - - - 1,523,656
Infrastructure improvement - - - 368,032
Committed to:
Public safety program - 428,971 - 428,971
Assigned to:
Contingency fund - - - 900,000
Subsequent years expenditures - - - 17,895,114
Unassigned - - (158,557) (292,119)
Total fund balance 2,157,823 428,971 (158,557) 55,769,033
Total liabilities, deferred inflows of
resources, and fund balance 2,157,823$ 429,315$ 8,888$ 64,260,031$
Capital Projects Funds
167
City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
Downtown BID
Transportation
Development Act
(TDA) Tourism BID Gas Tax
Revenues:
Use of money and property -$ -$ 56,643$ -$
Subventions and grants - 69,451 - 1,341,857
Charges for services 264,757 - 2,210,660 -
Property tax - - - -
Other revenues 497 - - -
Total revenues 265,254 69,451 2,267,303 1,341,857
Expenditures:
Current:
General Government - - - -
Public safety - - - -
Transportation - - - -
Community development 396,392 - 2,126,661 -
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Capital:
General Government - - - -
Public safety - - - -
Transportation - - - -
Leisure, cultural and social services - - - -
Community development - - - -
Total expenditures 396,392 - 2,126,661 -
Excess (deficiency) of revenues over
(under) expenditures (131,138) 69,451 140,642 1,341,857
Other financing sources (uses):
Transfers in - - - -
Transfers out - (45,000) (43,611) (1,341,857)
Total other financing
sources (uses)- (45,000) (43,611) (1,341,857)
Net change in fund balance (131,138) 24,451 97,031 -
Fund balance, beginning of year (2,424) 8,681 1,426,625 -
Prior year restatements
Fund balance (deficit),
beginning of year, as restated (2,424) 8,681 1,426,625 -
Fund balance (deficit),
end of year (133,562)$ 33,132$ 1,523,656$ -$
(Continued)
Special Revenue Funds
168
City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
Community
Development Block
Grant (CDBG)
Law Enforcement
Grants
Public Art
Contributions Avila Ranch CFD
Revenues:
Use of money and property -$ 2,142$ 63,178$ 10,696$
Subventions and grants 417,367 66,958 - -
Charges for services - 533 49,763 -
Property tax - - - 258,289
Other revenues - - - -
Total revenues 417,367 69,633 112,941 268,985
Expenditures:
Current:
General Government - - - -
Public safety - 87,326 - -
Transportation - - - -
Community development - - - 41,673
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Capital:
General Government - - - -
Public safety - - - -
Transportation - - - -
Leisure, cultural and social services - - 190,647 -
Community development - - - -
Total expenditures - 87,326 190,647 41,673
Excess (deficiency) of revenues over
(under) expenditures 417,367 (17,693) (77,706) 227,312
Other financing sources (uses):
Transfers in - - 425,000 -
Transfers out (426,419) - (90,550) (17,085)
Total other financing
sources (uses)(426,419) - 334,450 (17,085)
Net change in fund balance (9,052) (17,693) 256,744 210,227
Fund balance, beginning of year 143,170 68,456 1,269,844 157,805
Prior year restatements 1,112,944
Fund balance (deficit),
beginning of year, as restated 1,256,114 68,456 1,269,844 157,805
Fund balance (deficit),
end of year 1,247,062$ 50,763$ 1,526,588$ 368,032$
(Continued)
Special Revenue Funds
169
City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
SB1 Road Repair
SB1186 ASP
Certify
Affordable
Housing BEGIN
Loan Fund
Avila Ranch DPA
Fund
Revenues:
Use of money and property 5,556$ 7,821$ 451$ -$
Subventions and grants 1,233,220 - - -
Charges for services - 28,796 - -
Property tax - - - -
Other revenues - - - 100,000
Total revenues 1,238,776 36,617 451 100,000
Expenditures:
Current:
General Government - - - -
Public safety - - - -
Transportation - - - -
Community development - 2,106 177,975 100,000
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Capital:
General Government - - - -
Public safety - - - -
Transportation 1,271,758 - - -
Leisure, cultural and social services - - - -
Community development - - - -
Total expenditures 1,271,758 2,106 177,975 100,000
Excess (deficiency) of revenues over
(under) expenditures (32,982) 34,511 (177,524) -
Other financing sources (uses):
Transfers in - - - -
Transfers out - - - -
Total other financing
sources (uses)- - - -
Net change in fund balance (32,982) 34,511 (177,524) -
Fund balance, beginning of year 316,068 141,972 604,949 -
Prior year restatements
Fund balance (deficit),
beginning of year, as restated 316,068 141,972 604,949 -
Fund balance (deficit),
end of year 283,086$ 176,483$ 427,425$ -$
(Continued)
Special Revenue Funds
170
City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
Parkland
In-Lieu Fee
Open Space
Protection
Airport Area
Impact Fee
LOVR Sub-Area
Fee
Revenues:
Use of money and property 142,964$ 601$ 27,958$ 21,181$
Subventions and grants - - - -
Charges for services 128,485 - - 201,772
Property tax - - - -
Other revenues - - - -
Total revenues 271,449 601 27,958 222,953
Expenditures:
Current:
General Government - - - -
Public safety - - - -
Transportation - - - 22,886
Community development - - - -
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Capital:
General Government - - - -
Public safety - - - -
Transportation - - 300,600 -
Leisure, cultural and social services 1,234,968 - - -
Community development - - - -
Total expenditures 1,234,968 - 300,600 22,886
Excess (deficiency) of revenues over
(under) expenditures (963,519) 601 (272,642) 200,067
Other financing sources (uses):
Transfers in - - - -
Transfers out - - - -
Total other financing
sources (uses)- - - -
Net change in fund balance (963,519) 601 (272,642) 200,067
Fund balance, beginning of year 3,205,116 13,097 664,235 416,720
Prior year restatements
Fund balance (deficit),
beginning of year, as restated 3,205,116 13,097 664,235 416,720
Fund balance (deficit),
end of year 2,241,597$ 13,698$ 391,593$ 616,787$
(Continued)
Capital Projects Funds
171
City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
Fleet Replacement
Info Tech
Replacement
Affordable
Housing
Transportation
Impact Fee
Revenues:
Use of money and property -$ -$ 258,493$ 315,954$
Subventions and grants 44,899 37,350 1,358,189 -
Charges for services - 162,358 355,408 899,742
Property tax - - - -
Other revenues - - - -
Total revenues 44,899 199,708 1,972,090 1,215,696
Expenditures:
Current:
General Government - - - -
Public safety - - - -
Transportation - - - -
Community development - - - -
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Capital:
General Government 143,208 493,338 - -
Public safety 445,716 - - -
Transportation 116,435 - - 390,537
Leisure, cultural and social services 842,353 - - -
Community development - - 3,499,890 -
Total expenditures 1,547,712 493,338 3,499,890 390,537
Excess (deficiency) of revenues over
(under) expenditures (1,502,813) (293,630) (1,527,800) 825,159
Other financing sources (uses):
Transfers in 1,047,300 869,028 - -
Transfers out - (289,201) (207,000) (320,600)
Total other financing
sources (uses)1,047,300 579,827 (207,000) (320,600)
Net change in fund balance (455,513) 286,197 (1,734,800) 504,559
Fund balance, beginning of year 3,038,907 2,696,442 10,275,530 7,100,280
Prior year restatements (1,504,676)
Fund balance (deficit),
beginning of year, as restated 3,038,907 2,696,442 10,275,530 5,595,604
Fund balance (deficit),
end of year 2,583,394$ 2,982,639$ 8,540,730$ 6,100,163$
(Continued)
Capital Projects Funds
172
City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
Infrastructure
Parkland
Development
Impact Fee-
Citywide OASP Park MASP Park
Revenues:
Use of money and property -$ 49,078$ 100,569$ 99,250$
Subventions and grants 9,094,894 - - -
Charges for services - 343,323 132,781 -
Property tax - - - -
Other revenues - - - -
Total revenues 9,094,894 392,401 233,350 99,250
Expenditures:
Current:
General Government - - - -
Public safety - - - -
Transportation - - - -
Community development - - - -
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Capital:
General Government - - - -
Public safety - - - -
Transportation 184,599 - - -
Leisure, cultural and social services - - 441,192 -
Community development - - - -
Total expenditures 184,599 - 441,192 -
Excess (deficiency) of revenues over
(under) expenditures 8,910,295 392,401 (207,842) 99,250
Other financing sources (uses):
Transfers in 8,720,000 - - -
Transfers out (4,845,000) - - -
Total other financing
sources (uses)3,875,000 - - -
Net change in fund balance 12,785,295 392,401 (207,842) 99,250
Fund balance, beginning of year 430,088 854,359 2,323,856 1,688,634
Prior year restatements 1,504,676
Fund balance (deficit),
beginning of year, as restated 430,088 854,359 2,323,856 3,193,310
Fund balance (deficit),
end of year 13,215,383$ 1,246,760$ 2,116,014$ 3,292,560$
(Continued)
Capital Projects Funds
173
City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
OASP
Transportation
Impact Fee Fire Impact Fee Police Impact Fee
Park Improvement
Impact Fee-
Citywide
Revenues:
Use of money and property 64,568$ 14,584$ 16,295$ 84,787$
Subventions and grants - - - -
Charges for services - 169,373 195,116 721,792
Property tax - - - -
Other revenues - - - -
Total revenues 64,568 183,957 211,411 806,579
Expenditures:
Current:
General Government - - - -
Public safety - - - -
Transportation - - - -
Community development - - - -
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Capital:
General Government - - - -
Public safety - - - -
Transportation - - - -
Leisure, cultural and social services - - - 51,716
Community development - - - -
Total expenditures - - - 51,716
Excess (deficiency) of revenues over
(under) expenditures 64,568 183,957 211,411 754,863
Other financing sources (uses):
Transfers in - - - -
Transfers out - - - -
Total other financing
sources (uses)- - - -
Net change in fund balance 64,568 183,957 211,411 754,863
Fund balance, beginning of year 1,408,677 214,607 237,008 1,421,722
Prior year restatements
Fund balance (deficit),
beginning of year, as restated 1,408,677 214,607 237,008 1,421,722
Fund balance (deficit),
end of year 1,473,245$ 398,564$ 448,419$ 2,176,585$
(Continued)
Capital Projects Funds
174
City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
SLR
Transportation
Impact Fee
Public Safety
Equipment
Replacement Fund Debt Service
Total Nonmajor
Governmental
Funds
Revenues:
Use of money and property 79,787$ -$ 6$ 1,422,562$
Subventions and grants - - - 13,664,185
Charges for services 792,332 - - 6,656,991
Property tax - - - 258,289
Other revenues - - - 100,497
Total revenues 872,119 - 6 22,102,524
Expenditures:
Current:
General Government - - 10,018 10,018
Public safety - 603,889 - 691,215
Transportation - - - 22,886
Community development - - - 2,844,807
Debt service:
Principal - - 867,691 867,691
Interest and fiscal charges - - 669,345 669,345
Capital:
General Government - - - 636,546
Public safety - - - 445,716
Transportation 3,704 - - 2,267,633
Leisure, cultural and social services - - - 2,760,876
Community development - - - 3,499,890
Total expenditures 3,704 603,889 1,547,054 14,716,623
Excess (deficiency) of revenues over
(under) expenditures 868,415 (603,889) (1,547,048) 7,385,901
Other financing sources (uses):
Transfers in - 391,322 1,852,660 13,305,310
Transfers out - - (2,605,600) (10,231,923)
Total other financing
sources (uses)- 391,322 (752,940) 3,073,387
Net change in fund balance 868,415 (212,567) (2,299,988) 10,459,288
Fund balance, beginning of year 1,289,408 641,538 2,141,431 44,196,801
Prior year restatements 1,112,944
Fund balance (deficit),
beginning of year, as restated 1,289,408 641,538 2,141,431 45,309,745
Fund balance (deficit),
end of year 2,157,823$ 428,971$ (158,557)$ 55,769,033$
Capital Projects Funds
175
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Charges for services
Assessments 275,400$ 275,400$ 264,757$ (10,643)$
Other revenues - - 497 497
Total Revenues 275,400 275,400 265,254 (10,146)
Expenditures:
Current
Community development 275,400 275,400 396,392 (120,992)
Total Expenditures 275,400 275,400 396,392 (120,992)
Excess of Revenues Over Expenditures - - (131,138) (131,138)
Net Change in Fund Balance - - (131,138) (131,138)
Fund Balance, Beginning of Year (2,424) (2,424) (2,424) -
Fund Balance, End of Year (2,424)$ (2,424)$ (133,562)$ (131,138)$
Budget
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
June 30, 2024
Downtown Business Improvement District Fund
176
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
June 30, 2024
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Subventions and grants 45,000$ 45,000$ 69,451$ 24,451$
Total Revenues 45,000 45,000 69,451 24,451
Other Financing Uses:
Operating transfers out (45,000) (45,000) (45,000) -
Net Change in Fund Balance - - 24,451 24,451
Fund Balance, Beginning of Year 8,681 8,681 8,681 -
Fund Balance, End of Year 8,681$ 8,681$ 33,132$ 24,451$
Budget
Transportation Development Act (TDA)
177
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
June 30, 2024
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Use of money and property -$ -$ 56,643$ 56,643$
Assessments 2,140,800 2,140,800 2,210,660 69,860
Total Revenues 2,140,800 2,140,800 2,267,303 126,503
Expenditures:
Current
Community development 2,086,582 2,359,646 2,126,661 232,985
Total Expenditures 2,086,582 2,359,646 2,126,661 232,985
Excess of Revenues Over (Under) Expenditures 54,218 (218,846) 140,642 359,488
Other Financing Uses:
Operating transfers out (42,816) (42,816) (43,611) (795)
Net Change in Fund Balance 11,402 (261,662) 97,031 358,693
Fund Balance, Beginning of Year 1,426,625 1,426,625 1,426,625 -
Fund Balance, End of Year 1,438,027$ 1,164,963$ 1,523,656$ 358,693$
Budget
Tourism Business Improvement District Fund
178
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
June 30, 2024
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Subventions and grants 1,389,292$ 1,389,292$ 1,341,857$ (47,435)$
Total Revenues 1,389,292 1,389,292 1,341,857 (47,435)
Other Financing Uses:
Operating transfers out (1,389,292) (1,389,292) (1,341,857) 47,435
Net Change in Fund Balance - - - -
Fund Balance, Beginning of Year - - - -
Fund Balance, End of Year -$ -$ -$ -$
Budget
Gas Tax
179
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
June 30, 2024
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Subventions and grants -$ -$ 417,367$ 417,367$
Total Revenues - - 417,367 417,367
Other Financing Uses:
Operating transfers out - - (426,419) (426,419)
Net Change in Fund Balance - - (9,052) (9,052)
Fund Balance, Beginning of Year, as restated 1,256,114 1,256,114 1,256,114 -
Fund Balance, End of Year 1,256,114$ 1,256,114$ 1,247,062$ (9,052)$
Budget
Community Development Block Grant (CDBG) Fund
180
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
June 30, 2024
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Subventions and grants 113,000$ 129,271$ 66,958$ (62,313)$
Charges for services - - 533 533
Total Revenues 113,000 129,271 69,633 (59,638)
Expenditures:
Public Safety - 16,271 87,326 (71,055)
Total Expenditures - 16,271 87,326 (71,055)
Excess of Revenues Over (Under) Expenditures 113,000 113,000 (17,693) (130,693)
Net Change in Fund Balance 113,000 113,000 (17,693) (130,693)
Fund Balance, Beginning of Year 68,456 68,456 68,456 -
Fund Balance, End of Year 181,456$ 181,456$ 50,763$ (130,693)$
Budget
Law Enforcement Grants Fund
181
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
June 30, 2024
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Use of money and property -$ -$ 63,178$ 63,178$
Other revenues 15,000 15,000 49,763 34,763
Total Revenues 15,000 15,000 112,941 97,941
Expenditures:
Capital Projects 325,000 870,203 190,647 679,556
Total Expenditures 325,000 870,203 190,647 679,556
Excess of Revenues Over (Under) Expenditures (310,000) (855,203) (77,706) 777,497
Other Financing Uses:
Operating transfers in - 425,000 425,000 -
Operating transfers out - (90,550) (90,550) -
Total Other Financing Uses - 334,450 334,450 -
Net Change in Fund Balance (310,000) (945,753) 256,744 777,497
Fund Balance, Beginning of Year 1,269,844 1,269,844 1,269,844 -
Fund Balance, End of Year 959,844$ 324,091$ 1,526,588$ 777,497$
Budget
Public Art Contributions Fund
182
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
June 30, 2024
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Use of money and property -$ -$ 10,696$ 10,696$
Property tax - - 258,289 258,289
Other revenues 249,349 249,349 - (249,349)
Total Revenues 249,349 249,349 268,985 19,636
Expenditures:
Community Development (199,000) 157,187 41,673 115,514
Total Expenditures (199,000) 157,187 41,673 115,514
Excess of Revenues Over (Under) Expenditures 448,349 92,162 227,312 (95,878)
Other Financing Uses:
Operating transfers out (56,166) 56,166 (17,085) (73,251)
Net Change in Fund Balance 392,183 148,328 210,227 (169,129)
Fund Balance, Beginning of Year 157,805 157,805 157,805 -
Fund Balance, End of Year 549,988 306,133 368,032 (169,129)
Avila Ranch CFD
Budget
183
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
June 30, 2024
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Use of money and property -$ -$ 5,556$ 5,556$
Subventions and grants 1,177,994 1,177,994 1,233,220 55,226
Total Revenues 1,177,994 1,177,994 1,238,776 60,782
Expenditures:
Capital Projects 1,177,994 1,281,139 1,271,758 9,381
Total Expenditures 1,177,994 1,281,139 1,271,758 9,381
Excess of Revenues Over (Under) Expenditures - (103,145) (32,982) 70,163
Net Change in Fund Balance - (103,145) (32,982) 70,163
Fund Balance, Beginning of Year 316,068 316,068 316,068 -
Fund Balance, End of Year 316,068$ 212,923$ 283,086$ 70,163$
SB1 Road Repair Fund
Budget
184
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
June 30, 2024
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Use of money and property -$ -$ 7,821$ 7,821$
Charges for services - - 28,796 28,796
Total Revenues - - 36,617 36,617
Expenditures:
Community Development 25,000 25,000 2,106 22,894
Total Expenditures 25,000 25,000 2,106 22,894
Excess of Revenues Over (Under) Expenditures (25,000) (25,000) 34,511 59,511
Net Change in Fund Balance (25,000) (25,000) 34,511 59,511
Fund Balance, Beginning of Year 141,972 141,972 141,972 -
Fund Balance, End of Year 116,972$ 116,972$ 176,483$ 59,511$
SB1186 CASP Certify
Budget
185
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
June 30, 2024
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Use of money and property -$ -$ 451$ 451$
Total Revenues - - 451 451
Expenditures:
Community Development 25,000 25,000 177,975 (152,975)
Total Expenditures 25,000 25,000 177,975 (152,975)
Excess of Revenues Over (Under) Expenditures (25,000) (25,000) (177,524) (152,524)
Net Change in Fund Balance (25,000) (25,000) (177,524) (152,524)
Fund Balance, Beginning of Year 604,949 604,949 604,949 -
Fund Balance, End of Year 579,949$ 579,949$ 427,425$ (152,524)$
Affordable Housing BEGIN Loan Fund
Budget
186
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
June 30, 2024
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Other revenues - - 100,000 100,000
Total Revenues - - 100,000 100,000
Expenditures:
Community Development 25,000 25,000 100,000 (75,000)
Total Expenditures 25,000 25,000 100,000 (75,000)
Excess of Revenues Over (Under) Expenditures (25,000) (25,000) - 25,000
Net Change in Fund Balance (25,000) (25,000) - 25,000
Fund Balance, Beginning of Year - - - -
Fund Balance, End of Year (25,000)$ (25,000)$ -$ 25,000$
Avila Ranch DPA Fund
Budget
187
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
June 30, 2024
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Use of money and property -$ -$ 6$ 6$
Total Revenues - - 6 6
Expenditures:
General Government - - 10,018 (10,018)
Principal 1,185,195 1,185,195 867,691 317,504
Interest and fiscal charges 668,479 668,479 669,345 (866)
Total Expenditures 1,853,674 1,853,674 1,547,054 306,620
Excess of Revenues Over (Under) Expenditures (1,853,674) (1,853,674) (1,547,048) 306,626
Other Financing Uses:
Operating transfers in - (1,014) 1,852,660 1,853,674
Operating transfers out (2,200,000) (2,200,000) (2,605,600) (405,600)
Total other Financing Uses: - (1,014) (752,940) 1,448,074
Net Change in Fund Balance (1,853,674) (1,854,688) (2,299,988) 1,754,700
Fund Balance, Beginning of Year 2,141,431 2,141,431 2,141,431 -
Fund Balance, End of Year 287,757$ 286,743$ (158,557)$ 1,754,700$
Budget
Debt Service Fund
188
City of San Luis Obispo, California
Custodial Funds
For the Fiscal Year Ended June 30, 2024
The City of San Luis Obispo has established the following agency funds, which are used to account for funds held
by the City as an agent for private donations and programs operated jointly with other local agencies:
Whale Rock Fund.This fund was established to account for the financial activities of the Whale Rock Commission,
a joint venture providing water service to the City, the California Polytechnic State University, and the California
Men's Colony.
Jack House Fund . This fund was established to account for the financial activities of the Jack House Committee,
which includes the rehabilitation and use of a use of the historic Jack House property.
Hazardous Materials Task Force Fund . This fund was established to account for the financial activities of the
County task force.
General Agency Fund.This fund was established to account for a broad category of funds, including donations,
provided to the City to be utilized for specific purposes.
Boysen Ranch Conservation Easement Fund . This fund was established to account for contributions toward
obtaining a conservation easement on the Boysen Ranch property.
Cable Television Public, Educational and Government Funds (PEG)for the City of San Luis Obispo, San Luis
Coastal Unified School District (SLCUSD) and San Luis Obispo County Public Access, Inc. Public Access
Television (PAT). These funds account for collections by Charter Communications from its customers for PEG
access equipment and facilities. The City of San Luis Obispo, SLCUSD and PAT annually receive equal shares of
collections, restricted for approved uses as stipulated in the cable franchise agreement.
San Luis Ranch CFD Fund . This fund was established to account for the financial activities of the San Luis Ranch
Community Facilities District (CFD). The CFD is the City's first Mello-Roos district. Property taxes collected on
properties within the CFD will be used to pay for debt service on the related infrastructure constructed within the
district.
San Luis Ranch Property Acquisition . This fund has been established to account for the purchase of certain real
property required to be purchased by the San Luis Ranch development for the construction of the Prado Road
overpass. They City assisted with the negotiation between San Luis Ranch and the third party. The transaction is
complete and the Fund will be closed.
189
City of San Luis Obispo
Combining Statement of Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2024
Hazardous General Boysen Ranch
Whale Jack Materials Task Agency Conservation
Rock Fund House Fund Force Fund Fund Easement
ASSETS
Cash and investments 5,713,938$ 20,599$ 191,406$ 16,609,612$ 412,438$
Receivables:
Accounts 17,775 - - - -
Interest 26,605 96 916 - 1,928
Capital assets 663,072 - - - -
Total assets 6,421,390 20,695 192,322 16,609,612 414,366
LIABILITIES
Accounts payable 135,422 - 1,647 75,939 1,739
Compensated absence 51,453 - - - -
Accrued Salaries 17,087 - - - -
Other liabilities 2,000 - - - -
Total liabilities 205,962 - 1,647 75,939 1,739
NET POSITION
Restricted for
Individuals, organizations, and
other governments 6,215,428 20,695 190,675 16,533,673 412,627
Total net position 6,215,428$ 20,695$ 190,675$ 16,533,673$ 412,627$
(Continued)
190
City of San Luis Obispo
Combining Statement of Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2024
Total
PEG City of PEG San Luis Ranch San Luis Ranch Custodial
San Luis Obispo SLCUSD CFD Property Acquisition Funds
ASSETS
Cash and investments 146,976$ 38,731$ 12,925,566$ -$ 36,059,266$
Receivables:
Accounts 1 1 - - 17,777
Interest 686 209 4,649 - 35,089
Capital assets - - - - 663,072
Total assets 147,663 38,941 12,930,215 - 36,775,204
LIABILITIES
Accounts payable - - 2,535 - 217,282
Compensated absence - - - - 51,453
Accrued Salaries - - - - 17,087
Other liabilities - - - - 2,000
Total liabilities - - 2,535 - 287,822
NET POSITION
Restricted for
Individuals, organizations, and
other governments 147,663 38,941 12,927,680 - 36,487,382
Total net position 147,663$ 38,941$ 12,927,680$ -$ 36,487,382$
191
Hazardous General Boysen Ranch
Whale Jack Materials Task Agency Conservation
Rock Fund House Fund Force Fund Fund Easement
ADDITIONS:
Assessment revenue -$ -$ -$ -$ -$
Charges for services 1,242,781 - 67,000 - -
Charges for public programming - - - - -
Contribution from developers - - - 14,121,073 -
Other revenue 1,535,732 - - 804,542 -
Use of money and property 267,853 1,487 9,124 - 18,353
Total additions 3,046,366 1,487 76,124 14,925,615 18,353
DEDUCTIONS:
Administration expenses 274,372 - - -
Contractual services 1,771,627 - - 9,135
Materials and supplies 577,105 - 41,252 - -
Public programming - - - - -
Use of developer deposits - - - 1,270,866 -
Depreciation 63,283 - - - -
Total deductions 2,686,387 - 41,252 1,270,866 9,135
Net increase (decrease) in
fiduciary net position 359,979 1,487 34,872 13,654,749 9,218
NET POSITION:
Beginning of year 5,855,449 19,208 155,803 2,878,924 403,409
End of year 6,215,428$ 20,695$ 190,675$ 16,533,673$ 412,627$
(Continued)
City of San Luis Obispo
Combining Statement of Changes in Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2024
192
City of San Luis Obispo
Combining Statement of Changes in Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2024
Total
PEG City of PEG San Luis Ranch San Luis Ranch Custodial
San Luis Obispo SLCUSD CFD Property Acquisition Funds
ADDITIONS:
Assessment revenue -$ -$ 1,274,999$ -$ 1,274,999$
Charges for services - - - - 1,309,781
Charges for public programming 27,818 27,818 - - 55,636
Contribution from developers - - - - 14,121,073
Other revenue - - - 12,967 2,353,241
Use of money and property 5,998 1,732 592,272 - 896,819
Total additions 33,816 29,550 1,867,271 12,967 20,011,549
DEDUCTIONS:
Administration expenses - - 920,795 - 1,195,167
Contractual services - 25,180 - 12,967 1,818,909
Materials and supplies - - - - 618,357
Public programming 1 - - - 1
Use of developer deposits - - - - 1,270,866
Depreciation - - - - 63,283
Total deductions 1 25,180 920,795 12,967 4,966,583
Net increase (decrease) in
fiduciary net position 33,815 4,370 946,476 - 15,044,966
NET POSITION:
Beginning of year, 113,848 34,571 11,981,204 - 21,442,416
End of year 147,663$ 38,941$ 12,927,680$ -$ 36,487,382$
193
194
STATISTICAL SECTION (UNAUDITED)
195
196
City of San Luis Obispo, California
Statistical Section Overview
For the Fiscal Year Ended June 30, 2024
This part of the City of San Luis Obispo’s annual comprehensive financial report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the government’s overall financial health.
Contents
Financial Trends – Schedules 1-6 . These schedules contain trend information to help the reader understand how
the City’s financial performance and well-being have changed over time.
Revenue Capacity – Schedules 7-13 . These schedules contain information to help the reader assess the
government’s most significant local revenue sources, sales and property taxes.
Debt Capacity – Schedules 14-1 9. These schedules present information to help the reader assess the affordability of
the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.
Demographic and Economic Information – Schedules 20-22 . These schedules offer demographic and economic
indicators to help the reader understand the environment within which the government’s financial activities take
place.
Operating Information – Schedules 23-26 . These schedules contain service and infrastructure data to help the
reader understand how the information in the City’s financial report relates to the services the government provides
and the activities it performs.
197
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Governmental activities:
Net investment in capital assets 150,829,869$ 163,449,992$ 165,100,426$ 171,472,251$ 174,431,254$ 177,335,648$ 184,387,289$ 193,984,593$ 205,324,234$ 228,447,288$
Restricted 2,350,838 2,762,387 2,268,499 421,954 20,458,677 29,901,136 35,603,121 41,770,187 43,626,006 35,753,131
Unrestricted (53,845,288) (49,031,893) (41,496,841) (49,909,657) (72,041,172) (73,806,116) (62,369,688) (57,458,111) (29,876,424) (14,403,912)
Total governmental activities net position 99,335,419$ 117,180,486$ 125,872,084$ 121,984,548$ 122,848,759$ 133,430,668$ 157,620,722$ 178,296,669$ 219,073,816$ 249,796,507$
Business-type activities:
Net investment in capital assets 125,129,704$ 128,390,611$ 131,149,516$ 136,694,402$ 139,659,544$ 149,617,018$ 160,750,886$ 157,728,990$ 170,471,787$ 183,458,877$
Restricted 2,261,213 2,278,392 2,276,526 1,558,795 500,645 4,037,611 2,493,859 2,684,781 1,653,225 10,976,119
Unrestricted 42,297,248 49,495,220 53,421,102 50,866,147 57,379,689 53,983,005 53,159,080 79,970,715 88,160,609 81,095,190
Total business-type activities net position 169,688,165$ 180,164,223$ 186,847,144$ 189,119,344$ 197,539,878$ 207,637,634$ 216,403,825$ 240,384,486$ 260,285,621$ 275,530,186$
Primary government (City wide totals):
Net investment in capital assets 275,959,573$ 291,840,603$ 296,249,942$ 308,166,653$ 314,090,798$ 326,952,666$ 345,138,175$ 351,713,583$ 375,796,021$ 411,906,165$
Restricted 4,612,051 5,040,779 4,545,025 1,980,749 20,959,322 33,938,747 38,096,980 44,454,968 45,279,231 46,729,250
Unrestricted (11,548,040) 463,327 11,924,261 956,490 (14,661,483) (19,823,111) (9,210,608) 22,512,604 58,284,185 66,691,278
Total primary government net position 269,023,584$ 297,344,709$ 312,719,228$ 311,103,892$ 320,388,637$ 341,068,302$ 374,024,547$ 418,681,155$ 479,359,437$ 525,326,693$
Schedule 1
City of San Luis Obispo, California
Net Assets by Component
Last Ten Fiscal Years
(Accrual basis of accounting)
$-
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
Governmental vs Business-type Net Position
Total business-type activities net position
Total governmental activities net position
$(100,000,000)
$-
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
Net Position by Component
Net investment in capital assets
Restricted
Unrestricted
198
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Expenses:
Governmental activities:
Public safety 26,881,732$ 29,318,821$ 31,806,692$ 42,097,557$ 34,320,108$ 34,670,383$ 35,226,779$ 41,132,177$ 26,828,837$ 43,148,712$
Transportation 11,457,311 8,792,028 9,668,840 9,229,042 7,546,278 7,416,335 8,137,479 10,395,516 10,052,069 17,740,407
Culture and recreation 10,332,740 9,808,545 9,824,262 11,125,792 9,469,520 10,063,304 11,122,003 12,407,720 11,552,865 12,871,004
Community development 10,960,778 12,900,275 14,656,604 13,457,993 12,573,953 11,882,018 11,918,019 15,506,092 14,768,484 19,527,448
General Government - - --22,429,785 22,058,724 17,276,491 20,982,321 25,628,303 22,777,642
Interest on long-term debt 1,015,011 1,351,468 1,170,984 1,488,183 702,885 839,661 731,045 699,284 681,023 615,966
Total governmental activities expenses 60,647,572 62,171,137 67,127,382 77,398,567 87,042,529 86,930,425 84,411,816 101,123,110 89,511,581 116,681,179
Business-type activities:
Water 17,128,041 18,136,120 19,069,967 19,523,736 20,986,430 22,914,013 21,469,967 20,892,863 22,152,285 25,666,319
Sewer 10,132,214 10,842,451 11,683,262 14,158,612 13,967,717 13,100,905 15,064,551 12,576,058 13,417,264 22,831,476
Parking 3,556,637 3,900,052 3,791,493 4,098,840 4,088,681 4,145,364 4,057,242 4,517,125 5,063,501 8,962,908
Transit 3,994,194 4,088,423 4,076,871 4,355,103 4,320,976 4,384,344 4,023,536 3,851,264 4,482,763 5,352,380
Total business-type activities expenses 34,811,086 36,967,046 38,621,593 42,136,291 43,363,804 44,544,626 44,615,296 41,837,310 45,115,813 62,813,083
Total primary government expenses 95,458,658$ 99,138,183$ 105,748,975$ 119,534,858$ 130,406,333$ 131,475,051$ 129,027,112$ 142,960,420$ 134,627,394$ 179,494,262$
Program Revenues:
Governmental activities:
Charges for services:
Public safety 1,697,748$ 1,673,800$ 1,771,383$ 1,881,725$ 1,633,223$ 3,045,294$ 3,991,193$ 3,197,692$ 2,847,705$ 3,378,182$
Transportation 1,270,787 1,691,757 1,793,010 1,669,563 2,399,692 531,424 91,509 636,874 955,012 1,157,342
Culture and recreation 2,155,411 2,048,780 3,501,837 3,487,225 4,078,539 2,508,565 3,430,224 4,046,439 4,234,538 4,761,048
Community development 7,210,132 7,974,880 8,144,128 7,355,831 9,941,951 11,812,417 15,929,420 10,509,106 10,164,525 9,717,278
General Government - - --1,391,940 760,606 654,039 530,775 734,991 801,522
Operating grants and contributions 2,509,323 2,667,058 2,488,706 4,015,502 2,990,211 4,828,837 3,601,973 3,647,813 5,331,657 15,156,040
Capital grants and contributions 7,911,867 9,355,707 40,531 39,781 47,234 2,504,722 5,688,200 1,531,157 200,933 1,299,231
Total governmental activities program revenues 22,755,268 25,411,982 17,739,595 18,449,627 22,482,790 25,991,865 33,386,558 24,099,856 24,469,361 36,270,643
Business-type activities:
Charges for services:
Water 20,446,730$ 19,884,850$ 20,180,931$ 22,202,069$ 24,026,385$ 25,666,777$ 28,340,076$ 29,894,129$ 27,720,676$ 31,394,962$
Sewer 18,007,064 16,460,140 16,272,533 16,753,094 18,674,547 19,042,384 21,501,546 23,642,048 22,341,314 23,302,912
Parking 4,905,494 7,408,729 4,666,970 5,226,780 5,443,038 3,293,941 2,567,908 4,890,317 6,022,372 9,663,683
Transit 649,899 659,471 666,296 703,451 776,808 633,566 331,352 713,777 809,969 1,003,116
Operating grants and contributions 3,148,651 2,888,820 4,180,386 3,099,618 3,259,975 4,712,832 3,742,594 5,156,782 7,355,896 6,762,934
Capital grants and contributions 60,063 - ---- - - - -
Total business-type activities programs revenues 47,217,901 47,302,010 45,967,116 47,985,012 52,180,753 53,349,500 56,483,476 64,297,053 64,250,227 72,127,607
Total primary government program revenues 69,973,169$ 72,713,992$ 63,706,711$ 66,434,639$ 74,663,543$ 79,341,365$ 89,870,034$ 88,396,909$ 88,719,588$ 108,398,250$
Net Revenues (Expenses):
Governmental activities (37,892,304)$ (36,759,155)$ (49,387,787)$ (58,948,940)$ (64,559,739)$ (60,938,560)$ (51,025,258)$ (77,023,254)$ (65,042,220)$ (80,410,536)$
Business-type activities 12,406,815 10,334,964 7,345,523 5,848,721 8,816,949 8,804,874 11,868,180 22,459,743 19,134,414 9,314,524
Total primary government (25,485,489)$ (26,424,191)$ (42,042,264)$ (53,100,219)$ (55,742,790)$ (52,133,686)$ (39,157,078)$ (54,563,511)$ (45,907,806)$ (71,096,012)$
Continued
Schedule 2
City of San Luis Obispo, California
Changes in Net Position, Last Ten Fiscal Years
(Accrual Basis of Accounting)
199
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
General Revenues and Other Changes in Net Position:
Governmental activities:
Sales and use taxes 22,408,980$ 24,676,377$ 24,068,665$ 24,559,570$ 26,444,775$ 24,125,439$ 32,847,453$ 51,419,561$ 52,374,199$ 52,883,260$
Property taxes 9,631,890 10,186,858 10,756,477 11,425,510 12,238,357 13,301,736 14,197,869 14,716,412 15,635,545 16,381,159
Transient occupancy tax 6,805,742 7,127,756 7,381,989 7,514,289 8,061,087 6,325,841 6,960,035 10,650,762 11,037,037 11,063,012
Utility users tax 5,211,207 5,413,720 5,539,407 5,627,356 4,919,892 5,439,144 5,225,979 5,338,325 6,904,194 6,301,505
Property tax in-lieu of vehicle license fees 3,849,341 4,113,244 4,353,912 4,637,253 4,961,080 5,290,215 5,660,661 5,994,592 6,283,397 6,815,975
Other taxes and fees 4,993,285 4,800,592 3,929,377 5,006,594 4,332,557 4,883,677 5,578,944 5,800,333 7,216,335 7,209,793
Investment earnings 467,348 825,760 997,995 164,434 1,618,354 3,368,951 435,818 (1,638,993) 2,350,922 6,473,385
Miscellaneous and other 707,781 - - - 146,579 1,001,369 1,019,626 1,213,401 1,774,126 1,369,106
Gain (loss) on disposal of capital assets - - - - - - - - - -
Prior period adjustment - - - - - - 745,285 - - -
Cumulative change in accounting principle (GASB 65)- - - - - - - - -
Transfers (329,452) 1,436,048 1,051,563 1,198,027 2,456,035 1,889,900 1,992,911 1,685,314 2,243,612 2,636,032
Total governmental activities 53,746,122 58,580,355 58,079,385 60,133,033 65,178,716 65,626,272 74,664,581 95,179,707 105,819,367 111,133,227
Business-type activities
Investment earnings 361,627$ 845,906$ 182,261$ 320,471$ 2,516,216$ 2,880,634$ 577,250$ (1,207,118)$ 2,618,340$ 8,367,903$
Cumulative change in accounting principle - - - - - - - - - -
Income from investment in joint venture - 239,200 206,700 209,300 (25,469) 153,949 519,677 585,101 391,993 198,170
Prior period adjustment - - - - - - (907,350) - - -
Transfers 329,452 (1,436,048) (1,051,563) (1,198,027) (2,456,035) (1,889,900) (1,992,911) (1,685,314) (2,243,612) (2,636,032)
Total business-type activities 691,079 (350,942) (662,602) (668,256) 34,712 1,144,683 (1,803,334) (2,307,331) 766,721 5,930,041
Total primary government 54,437,201$ 58,229,413$ 57,416,783$ 59,464,777$ 65,213,428$ 66,770,955$ 72,861,247$ 92,872,376$ 106,586,088$ 117,063,268$
Change in net position:
Governmental activities 15,853,818$ 21,821,200$ 8,691,598$ 1,184,093$ 618,977$ 4,687,712$ 23,639,323$ 18,156,453$ 40,777,147$ 30,722,691$
Business-type activities 13,097,894 9,984,022 6,682,921 5,180,465 8,851,661 9,949,557 10,064,846 20,152,412 19,901,135 15,244,565
Total primary government 28,951,712$ 31,805,222$ 15,374,519$ 6,364,558$ 9,470,638$ 14,637,269$ 33,704,169$ 38,308,865$ 60,678,282$ 45,967,256$
Changes in Net Position, Last Ten Fiscal Years
(Accrual Basis of Accounting)
Continued
Schedule 2
City of San Luis Obispo, California
200
Fiscal Sales Local Property Transient Utility Property Franchise Business Other
Year and Use Sales (Note 2) (Note 1) Occupancy Users in-lieu of VLF Fees Tax Taxes Total
2014-15 15,272,683 7,136,297 9,631,890 6,805,742 5,211,207 3,849,341 2,790,077 2,203,208 707,781 53,608,226
2015-16 17,498,218 7,178,159 10,186,858 7,127,756 5,413,720 4,113,244 1,537,922 2,491,516 771,154 56,318,547
2016-17 16,737,005 7,331,660 10,756,477 7,381,989 5,539,407 4,353,912 1,557,128 2,372,249 737,826 56,767,653
2017-18 17,055,085 7,504,485 11,425,510 7,514,289 5,627,356 4,637,253 1,597,655 2,663,686 745,253 58,770,572
2018-19 18,119,545 8,325,230 12,238,357 8,061,087 4,919,892 4,961,080 1,428,296 2,630,499 273,762 60,957,748
2019-20 16,571,064 7,554,375 12,913,661 6,325,841 5,439,144 5,290,215 1,888,414 2,995,263 388,075 59,366,052
2020-21 20,067,740 12,779,713 14,197,869 6,960,035 5,225,979 5,660,661 1,796,829 3,782,115 425,136 70,896,077
2021-22 22,247,303 29,172,258 14,716,412 10,650,762 5,338,325 5,994,592 1,978,295 2,823,163 998,875 93,919,985
2022-23 21,865,468 30,508,731 15,635,545 11,037,037 6,904,194 6,283,397 2,349,603 3,281,010 1,585,722 99,450,707
2023-24 22,285,972 30,597,288 16,381,159 11,063,012 6,301,505 6,815,975 2,366,286 2,942,425 1,901,082 100,654,704
Notes:
1) Property tax revenues are presented net of SB2557 County administrative fees (approximately 3% of total property tax revenues).
The City has elected to receive its property tax revenues based on the Teeter Plan method of collection whereby the
County remits 100% of taxes levied, pursues collection and retains any delinquent taxes and related penalties and interest.
2) In November 2014 voters in San Luis Obispo reauthorized the local half-percent sales and use tax measure (Measure G) .
In November 2020 voters in San Luis Obispo replaced the local half-percent sales and use tax with a 1.5% local sales and use tax (Measure G-20).
(Accrual Basis of Accounting)
Schedule 3
City of San Luis Obispo, California
Governmental Activities Tax and Franchise Revenues by Source
Last Ten Fiscal Years
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Revenue Trends
Sales and Use Local Sales Property Transient Occupancy Utility Users
Property in-lieu of VLF Franchise Fees Business Tax Other Taxes
201
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
General fund:
Nonspendable:
Prepaid items 60,181 56,020 3,173,248 3,520,473 51,636 - 41,155 90,797 101,462 23,481
Advances to other funds - - - - - - - - - 4,845,000
Restricted for:
Debt service 303,126 489,056 128,102 159,724 - - - - - -
Committed to:
General government programs 3,942,459 4,468,863 9,428,034 8,693,113 - - 9,299,971 5,696,864 5,307,988 1,776,826
Contingency Fund - - - - - - 11,830,380 12,014,000 13,727,000 10,826,500
Risk management - - - - - - 1,955,966 1,845,935 585,456 585,456
Assigned to:
CalPERS pension payment - - - - - - 10,200,000 2,000,000 2,000,000 2,000,000
Contingency Fund 10,486,931 11,092,782 10,902,368 10,171,464 13,418,400 10,251,000 - - - -
Solid Waste AB939 - - - - - - - - 281,000 237,147
Establishment of Section 115 Trust - - - - - 1,400,000 2,000,000 2,000,000 2,000,000 2,000,000
Revenue stabilization - - - - - 1,000,000 - - 2,000,000 2,000,000
Development Services 1,848,386 382,396 41,110 596,796 531,000 899,277 710,657 530,657 464,136 214,136
SLO Repertory Theater Grant - - - - - - - 3,940,000 3,940,000 3,940,000
Tenant Improvement program/Economic Deve - - - - - - - - 1,400,000 1,400,000
Storm Related Costs - - - - - - - - - 5,125,068
General government programs - - - - - - - 4,270,529 - -
Public Safety 97,239 - - - - 1,096,215 929,344 - - -
Risk management - - - - - 1,498,078 - - - -
City Attorney - - 100,000 100,000 - 100,000 100,000 - - -
Subsequent years expenditures - 2,716,534 - - 9,908,932 10,284,119 4,738,806 - 2,455,573 6,009,831
Unassigned 7,828,485 10,419,881 2,723,292 6,334,870 6,185,574 7,122,607 5,311,792 8,356,724 8,275,453 4,346,321
Total general fund 24,566,807 29,625,532 26,496,154 29,576,440 30,095,542 33,651,296 47,118,071 40,745,506 42,538,068 45,329,766
Continued
Schedule 4
City of San Luis Obispo, California
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
For the Fiscal Year Ended June 30
202
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
All other governmental funds:
Nonspendable - - 5,642 (71,687) 292,641 - - 8,681 - -
Restricted for:
Debt service 2,140,980 2,119,724 2,119,611 1,653,109 1,791,026 2,226,898 2,575,367 2,540,255 2,141,431 -
Public safety programs 16,886 23,492 20,786 3,073 - 32,332 63,418 864,848 68,456 897,746
Transportation projects - - - - 8,151,487 9,371,824 10,519,994 8,051,050 7,567,001 11,232,312
Affordable housing programs - - - - 2,944,549 8,698,494 9,292,304 9,893,314 11,023,649 10,215,217
Impact fee programs - - - - 1,870,656 3,126,925 7,466,378 8,935,786 10,519,226 -
Parkland development programs - - - - 3,528,662 4,709,560 3,405,468 3,107,198 3,205,116 11,073,516
Public art programs - - - - 620,934 591,097 568,401 798,038 1,269,844 1,526,588
Tourism programs - - - - 456,023 322,975 678,554 1,147,881 1,426,625 1,523,656
Infrastructure improvements - - - - - - - - 157,805 368,032
Committed to:
Affordable housing programs 2,601,882 2,562,825 5,054,332 3,974,629 - - - - - -
Capital outlay 3,632,641 2,954,223 - - - - - - - -
General government programs 1,084,221 7,463,605 - 8,092,594 - - - - - -
Impact Fees Programs 9,410,273 549,349 8,795,074 595,256 - - - - - -
Open space programs 983,402 1,265,620 588,743 2,363,347 - - - - - -
Parkland development programs - - 2,728,883 - - - - - - -
Contingency fund - - - 519,885 - - - - - -
Public safety programs - - - - - - - - 641,538 428,971
Assigned to:
Contingency fund - - 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000
Subsequent years expenditures 2,606,757 3,559,851 5,846,873 5,861,455 6,382,294 8,521,320 8,826,420 23,533,631 29,776,252 39,636,756
Unassigned (83) - - - (318,422) (149,162) (5,782) - (2,424) (292,119)
Total all other governmental
funds 22,476,959 20,498,689 26,059,944 23,891,661 26,619,850 38,352,263 44,290,522 59,780,682 68,694,519 77,510,675
Total all governmental funds 47,043,766$ 50,124,221$ 52,556,098$ 53,468,101$ 56,715,392$ 72,003,559$ 91,408,593$ 100,526,188$ 111,232,587$ 122,840,441$
For the Fiscal Year Ended June 30
Continued
Schedule 4
City of San Luis Obispo, California
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
203
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Revenues:
Sales and use - general 15,272,683$ 17,498,218$ 16,737,005$ 17,055,085$ 17,805,482$ 16,571,064$ 20,067,740$ 22,247,303$ 21,865,468$ 22,285,972$
Sales and Use - local transaction tax 7,136,297 7,178,159 7,331,660 7,504,485 8,325,230 7,554,375 12,779,713 29,172,258 30,508,731 30,597,288
Prop. 172 Public Safety tax 409,590 405,066 405,512 397,488 314,063 416,459 425,136 529,299 544,521 520,952
Property tax 9,631,890 10,186,858 10,756,477 11,425,510 12,238,357 12,913,661 13,727,986 14,166,259 15,635,545 16,637,657
Transient Occupancy 6,805,742 7,127,756 7,381,989 7,514,289 8,061,087 6,325,841 6,960,035 10,650,762 11,037,037 11,063,012
Utility users tax 5,211,207 5,413,720 5,539,407 5,627,356 4,919,892 5,439,144 5,225,979 5,338,325 6,904,194 6,301,505
Property tax in-lieu of VLF 3,849,341 4,113,244 4,353,912 4,637,253 4,961,080 5,290,215 5,660,661 5,994,592 6,283,397 6,815,975
Franchise fees 2,790,077 1,537,922 1,557,128 1,597,655 1,428,296 1,888,414 1,796,829 1,978,295 2,349,603 2,366,286
Business tax 2,203,208 2,491,516 2,372,249 2,663,686 2,630,499 2,995,263 3,782,115 2,823,163 3,281,010 2,941,928
Cannabis tax - - - - - - - 998,875 1,127,744 1,116,495
Real property transfer 298,191 366,088 332,314 347,765 273,762 388,075 469,883 550,153 457,978 528,088
Fines, forfeitures and penalties 184,320 172,353 139,534 199,374 155,269 239,048 223,882 173,915 195,991 266,103
Use of money and property 467,348 825,760 260,169 164,434 1,996,382 2,005,968 219,507 (2,151,227) 1,999,872 5,329,747
Subventions and grants 10,858,570 11,771,980 2,624,753 4,156,333 3,110,689 7,538,893 10,719,698 6,446,192 6,364,704 17,387,665
Charges for services 12,450,887 13,622,945 15,173,707 14,672,746 18,394,586 17,828,561 22,090,479 17,657,128 18,418,552 19,108,699
Other revenues 217,710 242,744 446,456 634,391 590,796 708,579 717,440 506,722 719,724 215,095
Total revenues 77,787,061 82,954,329 75,412,272 78,597,850 85,205,470 88,103,560 104,867,083 117,082,014 127,694,071 143,482,467
Continued
Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
Schedule 5
City of San Luis Obispo, California
-
50,000,000
100,000,000
150,000,000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Total Revenue
204
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Expenditures:
Current:
General Government 10,534,463$ 12,409,567$ 11,824,360$ 12,709,324$ 13,769,778$ 14,503,410$ 13,041,242$ 17,197,912$ 23,646,307$ 17,570,930$
Public safety 24,356,077 26,468,454 28,091,747 28,862,906 31,714,220 30,216,995 31,714,578 39,921,208 37,425,928 39,889,845
Transportation 2,969,111 3,317,177 3,780,804 3,565,022 3,495,909 3,710,943 4,450,572 5,131,132 5,408,704 5,557,957
Culture and recreation 7,250,398 7,428,198 7,712,834 8,571,184 8,636,582 8,416,687 9,458,448 10,440,543 11,015,177 11,088,967
Community development 10,047,272 10,770,827 10,300,894 10,815,667 10,677,334 10,477,062 11,101,465 15,067,518 14,867,023 15,345,346
Debt service:
Principal 3,856,325 1,792,849 2,101,296 15,665,904 1,974,050 1,605,239 1,602,039 1,467,402 1,859,782 1,230,724
Interest 1,063,820 1,349,216 1,215,504 1,524,180 809,977 993,697 808,586 774,747 745,735 721,853
Capital:
Public safety 2,371,865 1,220,759 1,772,454 506,491 706,918 182,235 107,965 248,613 1,577,415 445,716
Transportation 14,302,937 15,038,306 4,161,966 6,419,137 6,441,229 6,412,541 11,452,720 13,653,849 9,364,910 2,267,633
Leisure, cultural and social services 2,399,211 1,463,269 1,499,704 981,768 597,187 1,213,682 537,118 3,933,463 1,226,800 2,760,876
Community development (Note 1)123,258 149,537 2,078,181 525,105 1,568,147 785,517 105,142 601,315 10,202,665 36,767,232
General government 1,684,045 590,263 633,682 1,192,424 4,695,978 2,081,482 2,492,435 1,619,793 2,365,432 1,726,059
Total expenditures 80,958,782 81,998,422 75,173,426 91,339,112 85,087,309 80,599,490 86,872,310 110,057,495 119,705,878 135,373,138
Excess of revenues
over(under)
expenditures (3,171,722) 955,907 238,846 (12,741,262) 118,161 7,504,070 17,994,773 7,024,519 7,988,193 8,109,329
Continued
Schedule 5
City of San Luis Obispo, California
Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
Continued
-
50,000,000
100,000,000
150,000,000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Total Expenditures
205
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Other Financing
Sources(Uses):
Issuance of debt/refunding debt 8,372,323$ 688,500$ 1,141,468$ 12,472,698$ 673,095$ -$ -$ -$ -$ (387,684)$
Transfers in 11,682,079 12,747,578 15,739,036 19,815,144 9,064,256 9,455,785 15,460,955 35,273,279 39,735,789 53,605,957
Transfers out (12,011,531) (11,311,530) (14,687,473) (18,617,117) (6,608,221) (7,565,885) (13,468,044) (33,587,965) (37,492,177) (50,969,925)
Other financing source - SBITA - - - - - - - - 474,594 137,233
Total other financing sources(uses)8,042,871 2,124,548 2,193,031 13,670,725 3,129,130 1,889,900 1,992,911 1,685,314 2,718,206 2,385,581
Net change in fund balance 4,871,150$ 3,080,455$ 2,431,877$ 929,463$ 3,247,291$ 9,393,970$ 19,987,684$ 8,709,833$ 10,706,399$ 10,494,910$
Debt service as a
percentage of noncapital
expenditures 11.03%5.20%5.37%26.64%4.08%3.86%3.46%2.55%2.82%2.18%
Notes:
1. Community Development Block Grant (CDBG) expenditures are included in the Community Development total for purposes of this schedule.
2. Prior to 2021-22, cannabis tax was included in business tax
Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
Schedule 5
City of San Luis Obispo, California
(Modified accrual basis of accounting)
Continued
Last Ten Fiscal Years
-
50,000,000
100,000,000
150,000,000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Revenue, Expenditures, and Other
Revenue Expenditures Other Financing Sources
206
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Staffing:
Salaries and wages:
Regular salaries 23,804,510$ 24,790,947$ 26,944,188$ 26,666,447$ 27,520,149$ 28,601,004$ 29,014,941$ 31,822,988$ 35,422,024$ 38,125,168$
Temporary salaries 2,137,487 1,964,521 1,793,360 1,711,755 1,898,331 1,882,307 2,294,603 1,855,690 1,942,485 2,237,584
Overtime 3,222,698 3,473,489 3,604,336 4,420,756 4,241,294 3,292,469 4,527,789 4,412,287 4,504,561 4,443,880
Benefits:
Retirement 7,943,827 9,323,782 10,394,523 10,570,883 15,150,755 12,593,753 13,344,252 24,665,892 17,908,383 17,782,639
Group health/disability insurance 3,319,117 3,828,238 4,129,004 4,638,471 4,193,021 4,291,139 4,040,575 4,327,121 5,130,991 5,487,733
Medicare 408,889 418,704 455,966 469,688 477,925 481,571 505,450 537,516 593,725 631,755
Unemployment Reimbursements 48,588 5,159 150,929 61,972 - 61,240 101,575 17,484 41,464 40,438
Total staffing 40,885,116 43,804,840 47,472,306 48,539,972 53,481,475 51,203,483 53,829,185 67,638,979 65,543,634 68,749,198
Contract services 5,903,638 6,271,607 6,962,949 6,940,018 6,557,939 6,444,957 7,190,499 9,067,321 10,328,784 9,710,231
Other operating expenditures
Communications & utilities 1,945,243 2,192,384 2,023,057 2,190,695 2,444,564 2,115,821 3,348,001 3,780,633 3,867,295 3,905,223
Rents & leases 159,718 164,729 170,288 171,909 180,478 160,045 88,615 133,521 133,649 173,957
Insurance:
General liability & property 1,646,605 1,847,422 1,273,133 1,658,319 1,600,962 2,196,462 1,323,824 2,071,193 2,874,417 3,163,588
Workers compensation 1,631,585 2,019,722 1,627,423 2,145,046 2,422,843 2,611,827 2,037,611 2,181,044 2,844,913 1,605,230
Other operating expenditures 3,635,542 3,079,347 3,345,191 3,017,537 3,575,930 4,902,050 4,256,574 4,363,206 8,063,807 4,597,752
Total operating expenditures 9,018,693 9,303,604 8,439,092 9,183,506 10,224,777 11,986,205 11,054,625 12,529,597 17,784,081 13,445,749
Minor capital 78,414 92,853 203,098 90,346 - - 1,070 10,510 - -
Total program expenditures 55,885,861 59,472,903 63,077,445 64,753,842 70,264,191 69,634,645 72,075,379 89,246,406 93,656,498 91,905,178
Reimbursed expenditures (3,451,208) (4,008,992) (4,164,747) (4,264,633) (3,981,789) (4,277,664) (4,578,402) (4,717,442) (4,461,578) (5,511,628)
Total general fund operating expenditures 52,434,653$ 55,463,911$ 58,912,698$ 60,489,209$ 66,282,402$ 65,356,981$ 67,496,977$ 84,528,964$ 89,194,920$ 86,393,550$
Schedule 6
City of San Luis Obispo, California
General Fund Operating Expenditures by Type
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
207
Fiscal Year Homeowners Secured Roll Nonunitary Unsecured Total Direct Market Value of Market
Exemptions Gross Value Utilities Roll TOTAL Tax Rate (Note 1) Value
2014-15 41,185,200 6,512,370,260 5,032,204 297,325,321 6,814,727,785 1.00% 6,814,727,785 100%
2015-16 41,518,400 7,166,010,320 4,883,115 317,266,793 7,488,160,228 1.00% 7,488,160,228 100%
2016-17 42,109,709 7,615,940,988 5,269,573 316,965,453 7,938,176,014 1.00% 7,702,282,828 100%
2017-18 42,702,377 7,844,131,236 4,369,188 331,183,030 8,179,683,454 1.00% 8,179,683,454 100%
2018-19 43,352,906 8,688,541,007 4,231,993 359,588,899 9,052,361,899 1.00% 9,052,361,899 100%
2019-20 43,335,854 9,156,811,458 3,990,145 360,372,662 9,521,174,265 1.00% 9,521,174,265 100%
2020-21 43,445,185 9,872,892,242 4,194,503 371,969,399 10,249,056,144 1.00% 10,249,056,144 100%
2021-22 43,644,354 10,449,275,830 4,154,621 369,153,263 10,822,583,714 1.00% 10,822,583,714 100%
2022-23 44,681,189 11,352,719,604 3,840,493 414,262,072 11,770,822,169 1.00% 11,770,822,169 100%
2023-24 45,448,900 11,765,407,582 3,768,692 414,282,418 12,183,458,692 1.00% 12,183,458,692 100%
Notes: 1) Valuations are established by the County Assessor of the County of San Luis Obispo, except for property owned by private utility companies,
which is valued by the State of California. The City assumes that Market Values are equal to total Assessed Valuation.
2) For comparison purposes, gross assessed valuations include homeowners' exemptions. Although these exemptions reduce property tax
collections, the revenue loss is reimbursed by the State of California. As such, gross assessed valuation is the revenue base used in
establishing property tax-related revenues.
Source: HdL, Coren & Cone ACFR 2023-24 report - 2023/24 Roll Summary table.
Gross Assessed Valuation (Notes 1 and 2)
Schedule 7
City of San Luis Obispo, California
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
-
4,000,000,000
8,000,000,000
12,000,000,000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Total Assessed Value
Secured Roll Gross Value Nonunitary Utilities Unsecured Rolls
208
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Proposition 13 maximum tax rate (Note 2)1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
Voter approved indebtedness:
State Water Bond 0.00400 0.00374 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00363
Cuesta Community College 2014 A & A1 - 0.01925 0.01925 0.01925 0.01925 0.01925 0.01925 0.01925 0.01925 0.01925
San Luis Coastal Usd 2014 Series A & B - 0.04900 0.04900 0.04900 0.04900 0.04900 0.03900 0.03900 0.03500 0.08400
Total (Notes 1 and 3)1.00400 1.07199 1.07225 1.07225 1.07225 1.07225 1.06225 1.06225 1.05825 1.10688
Notes:
1. Property tax rates are levied per $100 of assessed valuation. The tax rate information provided is for Tax Rate Area 003-000, which is the
largest tax rate area in the City.
2. The passage of Proposition 13 on June 6, 1978 established a maximum County-wide levy for general revenue purposes of 1% of market value.
Voter-approved tax rates for the retirement of long-term liabilities were excluded from this limit.
3. It is not possible to identify tax rates for individual agencies however, the following is a summary of derived property tax
allocations within Tax Rate Area 003-000 for Fiscal Year 2022-23
Source: HdL, Coren & Cone ACFR 2022-23 report - Direct & Overlapping Property Tax Rates table
Base ERAF Net
Rate Allocation Apportionment
San Luis Coastal Unified School District 36.10 0.00 36.10
San Luis Obispo County - General Fund 30.32 (8.08)22.24
City of San Luis Obispo 18.36 *(3.48)14.88
San Luis Obispo Community College District 6.42 0.00 6.42
County School Services 3.81 0.00 3.81
City/County Library 1.98 (0.32)1.66
Port San Luis Harbor 1.63 (0.44)1.19
Other Agencies 1.38 (0.32)1.06
Education Revenue Augmentation Fund (ERAF)0.00 12.65 12.65
Total 100%0%100%
*The County further adjusts the 18.4% base rate for revenue shifts to school districts as directed by the State as part of their cuts to local agencies,
resulting in an effective rate for the City of approximately 14.9%.
Source: HdL, Coren & Cone ACFR 2023-24 report - Property Tax Dollar Breakdown, San Luis Obispo County Assessor 2023-24 Post ERAF TRA Allocation Factors
Schedule 8
City of San Luis Obispo, California
Property Tax Rates
Last Ten Fiscal Years
209
Number of Secured Percent of Total Number of Secured Percent of Total
Owner Parcels Assessed Value Rank City Assessed Value Parcels Assessed Value Rank City Assessed Value
Jamestown Premier San Luis Obispo Retail 9 114,744,109$ 1 0.97% 9 103,367,164.00 1 1.52%
CAP VIII - Mustang Village LLC 5 102,091,806 2 0.87%
Sierra Vista Hospital Inc.8 85,382,718 3 0.73% 8 72,624,606 3 1.07%
San Luis Obispo Promenade DE LLC 10 56,350,000 4 0.48%
Irish Hills Plaza East LLC 5 54,268,047 5 0.46% 6 46,043,601 5 0.68%
Vintage at San Luis Obispo Alderwood 2 52,020,000 6 0.44%
Charles Pasquini Jr Trust Et Al 3 42,360,993 7 0.36% 9 59,870,336 4 0.88%
JCC Mission LLC Et Al 1 40,344,045 8 0.34%
Costco Wholesale Corporation 2 39,630,094 9 0.34% 1 33,364,921 7 0.49%
Hotel San Luis Obispo 1 38,280,428 10 0.33%
Target Corporation 1 25,832,537 9 0.38%
Mustang-UCAL LLC 4 76,978,909 2 1.13%
Marigold Center LLC 9 26,279,600 8 0.39%
SLO Promenade Limited Partnership 9 41,126,690 6 0.60%
Stephen N. Dorsi Trust 15 23,543,338 10 0.35%
Total 46 625,472,240$ 5.32% 71 509,031,702$ 7.49%
Source: HdL, Coren & Cone ACFR 2023-24 report - Top Ten Property Taxpayers table.
2014-15 data is from the City's ACFR.
Schedule 9
2023-24 2014-15
Current Year and Nine Years Ago
Principal Property Tax Payers
City of San Luis Obispo, California
94.68%
5.32%
Property Tax Payers for 2023-24
Remaining Property Tax Payers Top 10 Property Tax Payers
92.51%
7.49%
Property Tax Payers for 2014-15
Remaining Property Tax Payers Top 10 Property Tax Payers
210
Total Secured Current Year Percent
Fiscal Tax Levy Current Year Percent Delinquencies Delinquent
Year (Notes 1 and 2)Collections Collected (Note 3)(Note 3)
2014-15 9,097,280 9,097,280 100%0 0
2015-16 9,707,340 9,707,340 100%00
2016-17 10,250,205 10,250,205 100%0 0
2017-18 10,868,920 10,868,920 100%0 0
2018-19 11,648,706 11,648,706 100%0 0
2019-20 12,180,662 12,180,662 100%0 0
2020-21 12,957,910 12,957,910 100%0 0
2021-22 13,628,729 13,628,729 100%0 0
2022-23 14,458,958 14,458,958 100%0 0
2023-24 15,407,147 15,407,147 100%0 0
Notes:
1. The secured property tax roll is composed of ad valorem taxes as well as special assessments, and is calculated by the San Luis
Obispo County Auditor-Controller. The San Luis Obispo County Tax Collector is responsible for all property tax roll collections within the
City of San Luis Obispo. The amount reported is before the SB2557 County administrative fees of approximately 3% of total property tax
revenues.
2. The secured levy does not include supplemental assessments, unsecured tax revenues, or prior year adjustments, which can be significant. For example, in
2012-13 revenue to the City from supplemental assessments was $99,500 and $215,100 from unsecured. A one-time refund was received from the County
Auditor-Controller, refunding $632,800 representing prior overcharges for the SB2557 fee. Property tax revenues totaled $8,740,762.
3. The City has elected the Teeter Plan method of property tax collection, whereby the County remits 100% of taxes levied and
pursues collection and retains any delinquent taxes and related penalties and interest.
Source: San Luis Obispo County Auditor-Controller - 2023-24 Property Tax Estimates and Delinquencies Report
Schedule 10
City of San Luis Obispo, California
Secured Property Tax Roll Levies and Collections
Last Ten Fiscal Years
211
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Sales
In Thousands of Dollars
Apparel stores 75,491 75,037 72,540 74,268 73,272 71,632 51,499 73,724 73,290 75,868
General merchandise stores 179,741 183,397 182,596 182,975 180,609 182,263 173,777 203,468 243,196 235,442
Food and drug stores 47,702 43,798 43,486 46,085 47,337 49,239 50,107 49,447 52,218 54,237
Eating & drinking palces 156,393 171,620 177,675 184,745 187,174 192,495 140,612 199,116 223,258 233,739
Building materials & farm tools 131,741 140,259 142,498 160,223 163,029 162,338 165,802 182,782 190,878 187,731
Auto dealers & supplies 291,444 305,584 307,628 321,567 322,904 322,867 325,523 403,466 395,345 401,756
Service stations 103,140 88,116 79,613 83,481 94,369 95,382 70,383 99,612 123,678 113,299
Other retail stores 262,830 277,546 282,551 279,100 283,525 264,913 248,229 302,766 308,160 294,173
Total retail stores 1,248,482 1,285,357 1,288,587 1,332,444 1,352,219 1,341,129 1,225,932 1,514,381 1,610,023 1,596,245
All other outlets 367,940 168,258 164,634 176,620 170,882 189,299 158,208 639,005 642,340 635,959
Total 1,616,422 1,453,615 1,453,221 1,509,064 1,523,101 1,530,428 1,384,140 2,153,386 2,252,363 2,232,204
Source: HdL, Coren & Cone ACFR 2023-24 report - Taxable Sales by Category table
Schedule 11
City of San Luis Obispo, California
Schedule of Taxable Sales and Permits by Category
Last Ten Calendar Years
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Taxable Sales by Category
(In Thousands of Dollars)
Apparel stores General merchandise stores Food and drug stores
Eating & drinking palces Building materials & farm tools Auto dealers & supplies
Service stations Other retail stores All other outlets
212
Effective End State Local City LRM Combined
Date Date Jurisdiction Transportation Fund Rate (Note 4 & 6)Rate
8/1/1933 6/30/1935 (Note 2) 2.50%2.50%
7/1/1935 6/30/1943 3.00%3.00%
7/1/1943 6/30/1949 2.50%2.50%
7/1/1949 12/31/1961 3.00%3.00%
1/1/1962 7/31/1967 3.00%1.00%4.00%
8/1/1967 6/30/1972 4.00%1.00%5.00%
7/1/1972 6/30/1973 3.75%0.25% 1.00%5.00%
7/1/1973 9/30/1973 4.75%0.25% 1.00%6.00%
10/1/1973 3/31/1974 3.75%0.25% 1.00%5.00%
4/1/1974 11/30/1989 4.75%0.25% 1.00%6.00%
12/1/1989 12/31/1990 5.00%0.25% 1.00%6.25%
1/1/1991 7/14/1991 4.75%0.25% 1.00%6.00%
7/15/1991 12/31/2000 6.00%0.25% 1.00%7.25%
1/1/2001 12/31/2001 5.75%0.25% 1.00%7.00%
1/1/2002 6/30/2004 6.00%0.25% 1.00%7.25%
7/1/2004 3/31/2007 (Note 3) 6.25%0.25% 0.75% (Note 3)7.25%
4/1/2007 3/31/2009 6.25%0.25% 0.75%0.50% 7.75%
4/1/2009 6/30/2011 7.25%0.25% 0.75%0.50% 8.75%
7/1/2011 12/31/2012 6.25%0.25% 0.75%0.50% 7.75%
1/1/2013 12/31/2016 6.50%0.25% 0.75% (Note 5) 0.50% 8.00%
1/1/2017 3/31/2021 6.00%0.25% 1.00%0.50% 7.75%
4/1/2021 current 6.00%0.25% 1.00% (Note 6) 1.50% 8.75%
Notes:
1. The Bradley-Burns Uniform Local Sales and Use Tax Law was enacted in 1955. The law authorizes cities and counties to impose a sales and use
tax. Effective January 1, 1962, all cities and counties have adopted ordinances for the State Board of Equalization to collect the local tax.
2. Sales tax only. The use tax was enacted effective July 1, 1935.
3. In March 2004, a State ballot measure was passed issuing deficit reduction bonds for State purposes. Funding was provided effective July 1, 2004 by
repealing 25% of the local 1% sales tax and then adopting a new 1/4-cent sales tax dedicated to repayment of the deficit reduction bonds. Cities and
counties would then be "made whole" by the State from increased property tax allocations via reduced contributions to ERAF. This "triple flip" is
theoretically revenue-neutral, and as such, the effective rate for revenue purposes remains at 1%.
4. In November 2006, voters in San Luis Obispo approved a local revenue measure (LRM) increasing the City tax rate by 1/2%, which became effective
April 1, 2007. The sales tax measure has a sunset provision of 8 years. The local Sales Tax was extended as Measure G in the November 2014
election for 8 years.
5. Proposition 30, The Schools and Local Public Safety Protection Act of 2012 , was approved by California voters in November 2012 to temporarily
increase the sales and use tax by 0.25%. The sales and use tax imposed by Proposition 30 expired December 31, 2016.
6. In November 2020, voters in San Luis Obispo approved a local revenue measure (LRM) increasing the local sales tax to 1.5% with an effective date
of April 1, 2021. The local sales tax measure has no sunset provision and replaced the 2014 Measure G.
Source: State Board of Equalization, State of California
Schedule 12
City of San Luis Obispo, California
Historical Sales and Use Tax Rates
213
No. of No. of
Certificates Percent Certificates Percent
Construction 1,070 11.8%926 10.9%
Manufacturing 133 1.5%136 1.6%
Transportation/Utilities 76 0.8%50 0.6%
Wholesale 124 1.4%127 1.5%
Retail 1,307 14.5% 1,017 11.9%
Professional 1,148 12.7% 1,102 12.9%
Residential Rental 2,699 29.8% 2,759 32.3%
Commercial Rental 292 3.2%297 3.5%
Services 2,195 24.3% 2,117 24.8%
Total business certificates issued 9,044 100% 8,531 100%
Home occupations 712 7.9%718 8.4%
Located outside City limits 2,257 25.0% 2,059 24.1%
Located in Downtown Business Improvement District 572 6.3%584 6.8%
Source: City of San Luis Obispo Finance Department - Revenue Division
Fiscal Years Ended June 30, 2024 and 2023
Schedule of Business Tax Certificates Issued
City of San Luis Obispo, California
Schedule 13
20232024
11.8%
1.5%
0.8%1.4%
14.5%
12.7%29.8%
3.2%
24.3%
Business Tax Types for Fiscal Year End 2024
Construction
Manufacturing
Transportation/Utilities
Wholesale
Retail
Professional
Residential Rental
Commercial Rental
Services
214
Percentage of
Fiscal Lease Purchase Lease SBITA Lease Purchase Installment SBITA Total Primary Per Gross Assessed
Year Bonds Financing Loans Liability Liability Bonds Financing Sales Agreement Loans Liability Government Capita Value
2014-15 28,556,715 1,035,146 766,092 - - 25,983,320 - 8,481,043 18,559,851 - 83,382,167 1,834 1.28%
2015-16 27,762,893 1,374,773 679,314 - - 25,323,405 - 7,932,327 17,647,622 - 80,720,334 1,741 1.16%
2016-17 26,328,540 1,898,652 591,647 - - 24,072,708 - 7,366,468 16,709,160 - 76,967,175 1,660 0.99%
2017-18 23,484,450 1,599,769 503,101 - - 21,815,204 - 6,783,114 15,743,808 - 69,929,446 1,497 0.88%
2018-19 22,171,441 1,413,937 413,667 - - 19,542,657 - 6,181,902 14,750,783 - 64,474,387 1,385 0.79%
2019-20 21,084,777 1,381,486 323,380 - - 18,185,089 - 5,562,462 26,133,837 - 72,671,031 1,583 0.76%
2020-21 20,038,779 734,673 232,111 - - 16,772,171 - 4,919,407 56,229,546 - 98,926,687 2,102 0.97%
2021-22 18,954,856 390,420 139,961 125,003 172,229 15,307,178 - 4,257,343 99,918,648 - 139,265,638 2,922 1.29%
2022-23 17,829,558 36,245 46,887 570,922 407,465 13,795,824 - 3,575,863 120,213,508 50,596 156,526,868 3,275 1.33%
2023-24 16,560,495 - - 429,171 321,349 60,137,512 - 2,869,551 138,064,103 25,637 218,407,818 4,486 1.79%
Source: City of San Luis Obispo Finance Department
Governmental Activities Business-Type Activities
Schedule 14
City of San Luis Obispo, California
Per Capita Outstanding Debt By Type
Last Ten Fiscal Years
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Outstanding Debt Per Capita
Governmental Activities Business-Type Activities
215
Service Ratio of Net
Total Taxable General Payable from Net Bonded Debt Net Bonded
Assessed Bonded Enterprise Bonded to Assessed Debt per
Fiscal Year Population Value Debt Revenues Debt Value Capita
2014-15 45,484 6,814,727,785 0 0 0 0.0%0
2015-16 46,117 7,488,160,228 0 0 0 0.0%0
2016-17 46,724 7,938,176,014 0 0 0 0.0%0
2017-18 46,548 8,179,683,454 0 0 0 0.0%0
2018-19 46,802 9,052,361,899 0 0 0 0.0%0
2019-20 45,920 9,521,174,265 0 0 0 0.0%0
2020-21 47,063 10,249,056,144 0 0 0 0.0%0
2021-22 47,653 10,822,583,714 0 0 0 0.0%0
2022-23 47,788 11,770,822,169 0 0 0 0.0%0
2023-24 48,684 12,183,458,692 0 0 0 0.0%0
Notes:
1. Valuations are established by the County Assessor of the County of San Luis Obispo, except for property owned by
private utility companies, which is valued by the State of California.
2. See Schedule of Demographic and Economic Statistics for population data.
3. Personal income information is not available. Net Bonded Debt is expressed as a ratio to Assessed Value.
Source: HdL, Coren & Cone ACFR 2023-24 report - Demographic and Economic Statistics table
Demographics changed from FY to Calendar Year
Last Ten Fiscal Years
Schedule 15
City of San Luis Obispo, California
Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capital
216
Amount Applicable
Percent Applicable to the City of
to the City of San Luis Obispo
San Luis Obispo as of June 30, 2024
Overlapping tax and assessment debt:
San Luis Obispo Community College District 205,380,000$ 17.05% 35,017,290$
San Luis Coastal Unified School District 234,401 52.61% 123,316,022
City of San Luis Obispo Community Facilities District No. 2019-1 19,530,000 100.00% 19,530,000
Total overlapping tax and assessment debt 177,863,312
Overlapping General Fund long-term debt:
San Luis Obispo County General Fund Obligations 81,021,650$ 17.12% 13,870,096$
San Luis Obispo County Pension Obligations 22,760,324 17.12% 3,896,340
17,766,436
Direct long-term debt:
City of San Luis Obispo 2001 IBank Loan - Parking 100.00% 2,857,619$
City of San Luis Obispo 2009 IBank Loan - Sewer 100.00% 5,971,321
City of San Luis Obispo 2014 LOVR Lease Revenue Bonds 100.00% 6,085,000
City of San Luis Obispo 2018 Clean Water State Revolving - Sewer 100.00% 118,132,362
City of San Luis Obispo 2018 Lease Revenue Bonds 100.00% 11,440,000
City of San Luis Obispo 2018 Water Revenue Refunding Bonds 100.00% 7,365,000
City of San Luis Obispo 2020 IBank Loan - Water 100.00% 11,102,800
City of San Luis Obispo 2023 Lease Revenue Refunding Bonds 100.00% 45,780,000
City of San Luis Obispo Lease liability 100.00% 429,171
City of San Luis Obispo Subscription based IT agreements liability 100.00% 346,986
City of San Luis Obispo Unamortized bond premium Governmental Activities 100.00% 1,062,295
City of San Luis Obispo Unamortized bond premium Business-Type Activities 100.00% 4,965,712
Less self-supporting issues:
City of San Luis Obispo obligations supported by enterprise revenues (198,227,252)
Total direct debt 17,311,015
212,940,763$
Total direct and overlapping long-term debt
Ratio of long-term debt to assessed valuation and population
Gross Assessed Valuation 12,183,458,692$
Population 48,684
Percent of Gross Per Capita
Amount Assessed Valuation Long-Term Debt
Direct and Overlapping Debt:
Gross 411,168,014$ 3.4% $8,445.65
Net 212,940,763 1.7% 4,374
Direct Debt:
Gross 66,086,252$ 0.5% $1,357.45
Net 17,311,015 0.1% 356
Source: California Municipal Statistics, Inc., HdL, Coren & Cone ACFR 2023-24 report - Demographic and Economic Statistics table
Schedule 16
City of San Luis Obispo, California
Direct and Overlapping Long-Term Debt
Fiscal Year Ended June 30, 2024
The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by
determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
217
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Legal debt limit 244,175$ 272,833$ 288,836$ 306,738$ 339,464$ 357,044$ 384,339$ 405,847$ 441,406$ 456,880$
Total debt applicable to limit
Legal debt margin 244,175 272,833 288,836 306,738 339,464 357,044 384,339 405,847 441,406 456,880
Total debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Legal Debt Margin Calculation for Fiscal Year 2023-24
Gross Assessed Valuation 12,183,458,692$
Legal Debt Limit - 3.75% of Gross Assessed Valuation 456,879,701$
Long-term Debt:
Revenue Bonds Secured by Capital Leases 63,305,000$
Water Revenue Bonds 7,365,000
70,670,000
Less deductions allowed by law:
Revenue Bonds Secured by Capital Leases 63,305,000
Water Revenue Bonds 7,365,000
70,670,000
Total debt applicable to computed limit $0
Legal debt margin 456,879,701$
Note: The California Government Code provides for a legal debt limit of 15% of gross assessed valuation based on 25% of market value, or a legal debt limit of 3.75%.
The City's debt management policy, however, sets a more restrictive debt limit of 2% of assessed valuation.
Schedule 17
City of San Luis Obispo, California
Computation of Legal Debt Margin
Last Ten Fiscal Years
(Amounts Expressed in Thousands)
218
Less Operating & Net Revenue Coverage
Fiscal Operating Development Other Maintenance Available for With
Year Revenues Impact Fees Revenues Expenses Bond Debt Service Principal Interest Total Coverage Impact Fees
2014-15 20,552,417 (2,471,501) 59,594 (13,451,298)4,689,212 1,285,686 906,775 2,192,461 214% 327%
2015-16 20,137,422 (1,543,268) 53,731 (14,056,603)4,591,282 1,245,486 881,318 2,126,804 216% 288%
2016-17 19,873,517 (1,266,674) 410,484 (14,754,114)4,263,213 1,290,748 837,657 2,128,405 200% 260%
2017-18 21,997,054 (2,131,345) 325,268 (16,250,751)3,940,226 1,336,267 792,337 2,128,604 185% 285%
2018-19 23,992,758 (3,745,666) 948,324 (15,995,459)5,199,957 2,281,739 858,471 3,140,210 166% 285%
2019-20 25,666,777 (3,723,460) 663,838 (19,485,472)3,121,683 1,367,920 637,348 2,005,268 156% 341%
2020-21 28,340,076 (4,744,361) 65,386 (17,765,625)5,895,476 960,390 527,682 1,488,072 396% 715%
2021-22 29,671,678 (5,160,020) 222,451 (17,296,355)7,437,754 1,001,055 489,266 1,490,321 499% 845%
2022-23 27,472,542 (3,616,307) 248,134 (18,530,525)5,573,844 1,036,530 449,224 1,485,754 375% 619%
2023-24 31,141,045 (4,686,719) 253,917 (20,703,368)6,004,875 512,290 403,063 915,353 656% 1168%
Notes:
2. The City refinanced its 2005 Refunding Lease Revenue Bonds, 2006 Lease Revenue Bonds, and 2009 Lease Revenue Bonds into the 2018 Lease Revenue Bonds.
4. Net revenues available for debt service exclude development impact fees.
5. Operating expenses exclude depreciation and amortization.
Source: City of San Luis Obispo Utilities Department
FY 2023-24- Debt Schedule for 2023-25 Financial Plan
Schedule 18
City of San Luis Obispo, California
Revenue Bond Coverage - Water Fund
Last Ten Fiscal Years
3. Principal and interest amounts do not include the subordinate private placement loan retired in 2013.
Bonded Debt Service Requirements
1. Debt service requirements include 2012 Refunding Revenue Bonds, 2006 Refunding Revenue Bonds, and the 2004 state revolving loan
219
Net Revenue
Fiscal Gross Operating Available for
Year Revenues Expenses Bond Debt Service Principal Interest Total Coverage
2014-15 4,905,494 (2,409,027) 2,496,467 447,962 504,407 952,369 262%
2015-16 4,606,249 (2,757,299) 1,848,950 466,185 501,631 967,816 191%
2016-17 4,659,562 (2,671,028) 1,988,534 481,981 487,407 969,388 205%
2017-18 6,651,038 (2,998,555) 3,652,483 498,058 469,314 967,372 378%
2018-19 5,443,038 (3,100,113) 2,342,925 381,250 226,931 608,181 385%
2019-20 3,840,059 (3,080,588) 759,471 237,900 201,866 439,766 173%
2020-21 2,768,419 (3,093,183) (324,764) 247,050 192,350 439,400 (74%)
2021-22 4,890,317 (3,552,603) 1,337,714 257,725 182,468 440,193 304%
2022-23 6,022,372 (4,148,805) 1,873,567 265,350 172,159 437,509 428%
2023-24 9,663,683 (5,937,228) 3,726,455 277,550 161,545 439,095 849%
Notes:
1. In 1994 the Capital Improvement Lease Revenue Bonds were refinanced resulting in new debt of $11,780,000, of which $7,421,400
is designated for the Parking Fund. In 2004 the 1994 bonds were refinanced with a maturity date of 2014. In 2006 Lease Revenue
Bonds were issued resulting in new debt of $16,160,000, of which $8,726,400 is allocated to the Parking Fund.
3. Operating expenses exclude depreciation.
Source: City of San Luis Obispo Finance Department.
FY 2023-24- Debt Schedule for 2023-25 Financial Plan
Schedule 19
City of San Luis Obispo, California
Revenue Bond Coverage - Parking Fund
Last Ten Fiscal Years
2. The City refinanced its 2005 Refunding Lease Revenue Bonds, 2006 Lease Revenue Bonds, and 2009 Lease Revenue Bonds into the
2018 Lease Revenue Bonds. Resulting in new debt of $16,905,000, of which $5,156,025 is allocated to the Parking Fund.
Bonded Debt Service Requirements
220
Personal Public Elementary and Cuesta College
Calendar Income Median Secondary School Full Time Enrollment Unemployment
Year Population (1) in 000's (1) Age (1) Enrollment (2)SLO Campus (3) Rate (1)
2014 45,484 1,191 25.0 7,520 5,116 5.9%
2015 46,117 1,211 25.0 7,638 5,401 4.9%
2016 46,724 1,270 25.4 7,718 4,757 4.5%
2017 46,548 1,300 26.1 7,755 4,987 3.2%
2018 46,802 1,398 26.5 7,813 4,515 2.5%
2019 45,920 1,505 26.2 7,801 4,687 2.4%
2020 47,063 1,625 26.7 7,491 1,114 7.7%
2021 47,653 1,717 26.7 7,537 2,173 5.0%
2022 47,788 1,865 26.0 7,717 3,011 2.6%
2023 48,684 1,984 25.2 7,741 3,240 3.1%
Sources:
1. HdL, Coren & Cone ACFR 2023-24 report - Demographic and Economic Statistics table
3. https://www.cuesta.edu/about/depts/research/Enrollment_Management.html
Post Term FTES Dashboard, 320 Year Reported by academic year start date
Schedule 20
City of San Luis Obispo, California
Demographic and Economic Statistics
For The Last Ten Calendar Years
2. CA Dept of Education DataQuest: Enrollment Reports for San Luis Coastal Unified, by Academic Year start date;
https://www.cde.ca.gov/sdprofile/details.aspx?cds=40688090000000
221
Percentage Percentage
Number of Total City Number of Total City
Employer Employees Rank Employment Employees Rank Employment
*Cal Poly State University 3,320 1 13.44%3,055 1 10.70%
Cal Poly Corporation (Foundation)2,910 2 11.78%1,400 5 4.90%
*County of San Luis Obispo 2,847 3 11.53%2,547 2 8.80%
Pacific Gas & Electric Company 1,788 4 7.24%1,900 3 6.70%
*California Men's Colony 1,470 5 5.95%1,540 4 5.40%
San Luis Coastal Unified School District 1,112 6 4.50%902 6 3.20%
*Cuesta Community College 867 7 3.51%440 9 1.50%
Sierra Vista Regional Medical Center 750 8 3.04%
French Hospital Medical Center 686 9 2.78%
City of San Luis Obispo 620 10 2.51%
Mindbody 650 7 2.30%
California Department of Transportation 544 8 1.90%
Community Action Partnership 410 10 1.40%
Total 16,370 66.28%13,388 46.80%
San Luis Obispo City - Labor Force at 6/30/2024 24,700
*Although not directly in City limits, these are still major employers within the City
Source for the 2023-24 employers information is the Major Employers in San Luis Obispo County from State of California
Employment Development Department's website;
https://labormarketinfo.edd.ca.gov/majorer/countymajorer.asp?CountyCode=000079.
2014-15 data is from the City's ACFR.
2014-152023-24
Schedule 21
City of San Luis Obispo, California
Principal Employers
Current Year and Nine Years Ago
66.28%
33.72%
City Wide Employers for 2023-24
Top 10 Employers All Other Employers
13.44%
11.78%
11.53%
7.24%
5.95%
4.50%
3.51%
3.04%
2.78%
2.51%
Top Ten Employers for 2023-24
*Cal Poly State University Cal Poly Corporation (Foundation)
*County of San Luis Obispo Pacific Gas & Electric Company
*California Men's Colony San Luis Coastal Unified School District
*Cuesta Community College Sierra Vista Regional Medical Center
French Hospital Medical Center City of San Luis Obispo
222
Function 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Public Safety
Police
Sworn 60.0 61.0 61.0 61.5 61.5 64.5 65.0 64.0 64.0 67.0
Non-sworn 25.5 25.5 25.5 24.0 24.0 24.0 25.5 27.0 27.0 28.0
Fire
Sworn 49.0 50.0 47.0 47.0 47.0 47.0 47.0 47.0 47.0 48.0
Non-sworn 4.0 4.0 10.0 10.0 10.0 10.0 9.5 10.5 10.5 12.5
Public Utilities 64.8 67.1 69.1 69.1 69.1 69.1 69.9 70.6 70.6 80.1
Transportation 28.9 36.8 36.8 36.8 36.8 36.8 37.1 43.3 44.3 40.2
Culture and recreation 34.0 35.0 35.0 35.0 35.0 34.0 33.0 43.0 43.0 47.0
Community Development 40.0 51.0 51.0 47.4 47.9 47.5 47.5 54.5 54.5 58.0
General Government 56.0 57.0 61.0 61.0 62.3 64.8 72.3 87.8 87.8 92.7
Total 362.2 387.4 396.4 391.8 393.6 397.7 406.8 447.7 448.7 473.5
Ratio of Sworn Police Personnel per 1,000 Population:* 1.32 1.33 1.31 1.38 1.31 1.34 1.38 1.34 1.34 1.38
Ratio of Sworn Fire Personnel per 1,000 Population:*1.08 1.06 1.01 0.99 1.00 1.02 0.99 0.99 0.98 0.99
*Population numbers may not include Cal Poly students or faculty that live on campus and are served by City personnel.
Note: See Schedule of Demographic and Economic Statistics for population data.
Source: City of San Luis Obispo Finance Department
Last Ten Fiscal Years
Schedule 22
City of San Luis Obispo, California
Regular Authorized Positions
223
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Function/Program:
Police:
Calls for police/fire service 36,515 38,300 39,620 39,103 37,825 37,335 40,907 44,183 43,104 41,683
Incident numbers issued 31,048 32,542 33,360 32,730 31,471 31,472 35,695 38,290 36,474 35,084
Police reports written 8,435 8,852 8,675 7,735 6,999 6,297 5,852 6,637 6,137 6,708
Violations cited 6,648 7,673 7,649 7,524 5,874 4,020 3,445 3,735 4,851 5,126
Citations issued 6,204 7,038 7,030 6,752 5,287 3,660 3,056 3,349 4,531 4,719
Collision reports 630 587 608 609 623 481 419 483 487 533
Violent crimes:*237 173 177 178 191 187 201 225 266 245
Willful homicide*- - - - 1 - 1 2 - -
Forcible rape*44 29 38 44 55 39 37 25 37 31
Robbery*25 13 21 23 33 34 24 33 37 44
Aggravated assault*168 131 118 111 103 114 139 165 192 170
Property crimes:*542 637 731 644 728 728 793 885 985 667
Burglary**206 225 251 172 244 277 284 272 254 183
Motor vehicle theft*71 87 95 94 74 74 117 174 119 90
Larceny-theft:*1,162 1,335 1,730 1,516 1,493 1,387 1,219 1,398 1,372 1,010
Over $400*265 325 385 378 410 377 392 439 612 394
$400 and under*897 1,010 1,345 1,138 1,083 1,010 827 959 760 616
Fire:
Medical responses (Note 1)3,417 3,540 4,538 4,248 3,715 3,884 3,544 3,857 4,675 4,482
Fire suppression responses (Note 1)111 151 143 163 122 127 133 136 146 198
Hazardous materials responses (Note 1 and 3)21 22 21 17 25 29 98 133 153 108
Other responses (Note 1)1,929 2,158 1,799 1,785 2,100 2,140 1,745 2,097 2,417 2,331
Total service responses 5,478 5,871 6,501 6,213 5,962 6,180 5,520 6,223 7,391 7,119
Fire Suppression Training Hours 8,149 6,714 6,348 7,719 8,410 10,835 11,033 16,015 20,814 19,531
Fire and life-safety inspections (Note 4)2,476 2,516 3,756 3,738 2,002 3,128 1,871 2,092 1,790 1,809
Arson investigations (Note 2)17 44 8 12 24 21 13 5 17 5
Education activities (# of people)23,697 23,680 23,575 23,540 2,690 2,700 2,031 2,000 3,500 3,000
Public Utilities:
Water/Sewer customer accounts 14,953 15,167 15,188 15,505 15,555 15,672 15,958 16,256 16,703 17,015
Miles of sewerline 138 138 138 143 143 146 148 148 148 148
Miles of waterline *187 191 197 187 190 191 191 191 191 191
Water service line repairs and renewals (incl. recyc 60 50 50 57 38 48 35 47 53 55
Sewer main stoppages 13 - 11 4 10 8 11 14 12 1
Acre feet of water delivered - Nacimiento 839 3,574 3,817 3,753 3,484 1,470 2,449 4,460 2,096 -
Acre feet of water delivered - Salinas 1,986 8 273 853 790 2,165 1,337 650 949 1,251
Acre feet of water delivered - Whale Rock 2,615 1,375 949 924 800 1,556 1,641 399 2,118 4,027
Continued
Schedule 23
City of San Luis Obispo, California
Operating Indicators and Capital Asset Statistics by Function
Last Ten Fiscal Years
224
Schedule 23
City of San Luis Obispo, California
Operating Indicators and Capital Asset Statistics by Function
Last Ten Fiscal Years
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Function/Program:
Transportation:
Signals and lights:
Intersections with traffic signals 68 70 70 70 70 70 72 73 73 73
Traffic signal service requests 80859060715993 145 188 197
Streetlights operated & maintained 2,300 2,300 2,300 2,280 2,280 2,280 2,400 2,477 2,531 2,531
Streetlight service requests 175 45 50 13 8 11 33 47 61 69
Roadways:
Estimated miles of paved streets 133 133 133 134 134 134 134 135 143 143
Pavement condition index 72 71 71 70 73 70 73 70 76 73
Traffic collisions 720 531 482 501 431 441 259 361 388 384
Parking spaces provided (lot, garage & street) 3,176 2,953 2,892 2,871 2,865 2,865 2,765 2,817 2,607 2,740
Parking citations written 20,690 24,213 23,348 21,647 24,415 21,240 17,748 39,254 44,439 26,427
Total transit passengers 1,099,274 1,209,708 1,131,716 945,288 981,995 715,380 179,456 528,000 515,007 575,255
Leisure, Cultural and Social Services (Note 5):
Open space acres maintained 3,510 3,510 3,510 3,775 4,040 4,040 4,040 4,040 4,040 4,040
Open space easement acres 3,200 3,200 3,200 3,200 3,500 3,500 3,500 3,500 3,500 3,500
Trail mileage 49525255555662656567
Total golf rounds played 33,674 30,572 28,196 35,670 24,662 16,428 24,222 17,991 16,392 20,858
Acres of park landscape maintained 157 157 157 500 570 530 106 106 107 115
City Maintained Trees 19,000 20,000 20,000 20,000 20,000 20,000 12,970 12,970 12,976 13,414
Children's services program enrollment totals 2,360 2,115 2,115 1,950 2,050 1,775 1,483 1,611 1,834 2,015
Triathlon:
participants, spectators, and volunteers 5,500
Annual Senior Center Membership *265 331 350 315 192 248 325 315
Facility permits processed 836 1,305 1,073 864 909 650 298 455 714 813
Annual aquatics attendance (total)83,107 68,403 96,687 97,701 87,690 55,202 51,235 62,224 66,621 75,418
Adult athletic teams registered 320 325 325 362 292 184 112 168 167 151
Youth athletic participants registered 1,350 1,300 1,150 1,115 1,140 618 611 1,083 1,180 1,368
Special event applications processed 103 77 101 88 95 40 2 37 45 72
Banner permits processed 47 87 56 45 81 78 48 26 80 70
Instructional class enrollments 1,751 1,151 1,724 1,439 1,118 595 626 1,212 900 755
Continued
Continued
225
Schedule 23
City of San Luis Obispo, California
Operating Indicators and Capital Asset Statistics by Function
Last Ten Fiscal Years
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Function/Program:
Community Development (Note 6):
Housing characteristics:
Single family units (annually cumulative) 11,133 11,230 11,306 11,413 11,510 11,693 11,853 12,072 12,169 12,336
2-4 units (annually cumulative)2,692 2,695 2,789 2,851 2,865 2,869 2,888 2,928 2,977 2,983
5 or more unit structures (annually cumulative) 5,767 5,804 6,038 6,097 6,148 6,209 6,309 6,524 6,678 6,808
Mobile homes (annually cumulative)1,482 1,482 1,482 1,482 1,482 1,483 1,483 1,483 1,448 1,448
Total (annually cumulative)21,074 21,211 21,615 21,843 22,005 22,254 22,533 23,007 23,272 23,575
Building permits issued (Note 7):597 584 584 623 **202 556 721 662 605 678
Residential:
Single family residential incl. condos 114 97 62 125 159 171 253 202 157 203
Multi-family residential (includes second units &32 5 13 18 19 17 33 16 24 8
Non-residential 27 13 14 10 15 12 2 3 11 10
Other permits:
Additions, alterations, demolitions 460 522 545 502 381 510 371 366 415 409
Other improvements (motel rooms)- - - - 1 - - - 60 69
Total 633 637 634 655 575 710 659 587 667 699
Approximate value of building permits (in thousands)
Residential:
Single family residential 36,722$ 26,441$ 15,024$ 19,707$ 24,300$ 28,026$ 50,758$ 35,824$ 31,058$ 50,717
Multi-family residential 26,499$ 13,500$ 8,172$ 17,249$ 21,162$ 33,606$ 10,545$ 56,085$ 20,985$ 71,330
Non-residential 9,791$ 11,484$ 51,110$ 6,248$ 20,430$ 16,981$ 17,475$ 22,665$ 44,601$ 54,261
Other permits:
Additions, alternations, demolitions (incl. swimm 22,897$ 30,230$ 27,711$ 14,928$ 34,596$ 60,812$ 78,780$ 29,207$ 58,766$ 34,062
Total 95,909$ 81,655$ 102,017$ 58,132$ 100,488$ 139,425$ 157,558$ 143,783$ 155,410$ 210,370
Building inspections conducted 6,641 7,195 10,745 9,974 7,537 8,670 7,959 10,470 10,423 9,948
Home occupation permits processed/applied for 113 163 144 112 112 131 133 140 101 117
Development permit applications received 293 253 236 215 215 338 269 282 244 109
Continued
Continued
226
Schedule 23
City of San Luis Obispo, California
Operating Indicators and Capital Asset Statistics by Function
Last Ten Fiscal Years
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Function/Program:
General Government:
Business tax certificates issued:
Located outside City limits 1,602 2,018 1,699 1,872 1,948 1,839 1,913 1,932 2,057 2,257
Total certificates issued 7,805 7,597 8,118 8,230 8,205 7,675 7,732 8,371 8,531 9,044
Citywide recruitments (total)129 103 103 97 99 86 90 155 142 143
Fleet vehicles maintained
City-wide fleet & equipment assets 300 318 323 339 338 340 345 347 365 361
Replaces prior category
Telephone lines managed 1,037 1,005 998 907 971 963 1,071 1,101 1,101 1,099
Cell phones & modems supported 460 453 476 492 481 487 464 538 595 593
IT users supported 511 515 467 471 488 475 487 511 560 575
* Data from California Department of Justice based on calendar year
** Data only reflects the second half of the Fiscal Year
Notes: Some workload indicators are projections.
1. In Fiscal year 2010-11, numbers reported used observed code from Spillman rather than condition code.
2. Police Department Conducts Arson Investigations, Fire Department Conducts Cause and Origin Investigations. Reported number is Cause and Origin Investigations
5. Leisure, Culture and Social Services Indicators for FY 19-20 were lower compared to previous years due to COVID-19 program closures and capacity restrictions.
7. Excludes special permits such as plumbing, mechanical, electrical, signs, and grading as well as plan check permits.
Source: City of San Luis Obispo Departments
Continued
4. Beginning in 2020, the fire department began utilizing new mobile inspection software that uses a different inspection methodology counting the building rather than the number of
individual units within the building.
6. Beginnig in 2016-17, building permit data reported in terms of calendar years, in alignment with State-mandated reporting requirements. Beginning in 2019-20 all Community
Development Indicators are reported by calendar year.
3. Beginning in 2020-21, the Fire Department includes all "Hazardous Condition" calls for service as categorized by the National Fire Incident Reporting System (NFIRS). Previously only
chemical or flammible liquid spills were captured under this function. Moving forward this function also includes electrical and biological hazards among others.
227
Fiscal Historic Increase/ Sales Increase/ Deliveries Increase/
Year Connections (Decrease) Revenues (Decrease) In Acre Feet (Decrease)
2014-15 14,847 0.01% 17,530,717 -4.72% 5,354 (9.76%)
2015-16 15,167 1.40% 17,939,024 2.33% 4,957 (7%)
2016-17 15,357 1.25% 18,196,937 1.44% 5,039 2%
2017-18 15,505 0.96% 19,159,169 5.29% 5,530 10%
2018-19 15,555 0.32% 19,577,182 2.18% 5,074 (8%)
2019-20 15,672 0.75% 21,519,632 9.92% 5,191 2%
2020-21 15,958 1.82% 22,757,325 5.75% 5,602 8%
2021-22 16,256 1.87% 24,129,231 6.03% 5,732 2%
2022-23 16,703 2.75% 23,297,077 -3.45% 5,130 (11%)
2023-24 17,015 1.87% 26,088,324 11.98% 4,678 (9%)
Source: City of San Luis Obispo Utilities Department.
Schedule 24
City of San Luis Obispo, California
Water System
Statistical Data
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
Sales Revenues
-5.00%
0.00%
5.00%
10.00%
15.00%
Revenue Increase/Decrease
228
As of Monthly Multi-family Single family
June 30 of Each Year Consumption Price per hcf*dwelling Commercial Landscape dwelling Multi-family dwelling Commercial
2015 Base Fee 5.28$ $8.32 min. charge per $8.32 min. charge per $8.32 min. charge per
1-8 hcf 6.92 dwelling unit dwelling unit dwelling unit
8 + hcf 8.65 $9.17/unit volume charge** $9.17/unit volume charge** $9.17/unit volume charge**
2016 Base Fee 9.98$ $8.32 min. charge per $8.32 min. charge per $8.32 min. charge per
Base Fee Drought Surcharge 0.74 dwelling unit dwelling unit dwelling unit
1-8 hcf 6.92 $9.17/unit volume charge** $9.17/unit volume charge** $9.17/unit volume charge
Drought Surcharge 1.10
9 + hcf 8.65
Drought Surcharge 1.37
2017 Base Fee 9.98$ $8.57 min. charge per $8.57 min. charge per $8.57 min. charge per
Base Fee Drought Surcharge 0.74 dwelling unit dwelling unit dwelling unit
1-8 hcf 6.92 $9.44/unit volume charge** $9.44/unit volume charge** $9.44/unit volume charge
Drought Surcharge 1.10
9 + hcf 8.65
Drought Surcharge 1.37
2018 Base Fee 12.33$ $8.57 min. charge per $8.57 min. charge per $8.57 min. charge per
1-8 hcf 7.27 dwelling unit dwelling unit dwelling unit
9 + hcf 9.08 $9.44/unit volume charge** $9.44/unit volume charge** $9.44/unit volume charge
2019***Residential SFR Base Fee 20.61$ Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined
1-5 hcf 5.90 by meter size****by meter size****by meter size****by meter size ****by meter size ****by meter size ****
6-12 hcf 6.87 $6.73/unit volume charge $8.17/unit volume charge $10.02/unit volume charge $7.85/unit volume charge** $7.85/unit volume charge** $7.85/unit volume charge**
13 +12.59
2020 Residential SFR Base Fee 21.74$ Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined
1-5 hcf 6.22 by meter size****by meter size****by meter size****by meter size ****by meter size ****by meter size ****
6-12 hcf 7.25 $7.10/unit volume charge $8.62/unit volume charge $10.57/unit volume charge $8.28/unit volume charge** $8.28/unit volume charge** $8.28/unit volume charge**
13 +13.28
2021 Residential SFR Base Fee 22.52$ Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined
1-5 hcf 6.44 by meter size****by meter size****by meter size****by meter size ****by meter size ****by meter size ****
6-12 hcf 7.51 $7.36/unit volume charge $8.93/unit volume charge $10.95/unit volume charge $8.58/unit volume charge $8.58/unit volume charge $8.58/unit volume charge
13 +13.76
2022 Residential SFR Base Fee 23.31$ Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined
1-5 hcf 6.67 by meter size****by meter size****by meter size****by meter size ****by meter size ****by meter size ****
6-12 hcf 7.77 $7.62/unit volume charge $9.24/unit volume charge $11.33/unit volume charge $8.88/unit volume charge $8.88/unit volume charge $8.88/unit volume charge
Continued
Schedule 25
City of San Luis Obispo, California
Water and Sewer Rates
Last Ten Fiscal Years
Water Rates (Note 1)Sewer Rates (Monthly)
229
Schedule 25
City of San Luis Obispo, California
Water and Sewer Rates
Last Ten Fiscal Years
As of Monthly Multi-family Single family
June 30 of Each Year Consumption Price per hcf*
dwelling Commercial Landscape dwelling Multi-family dwelling Commercial
2023 Residential SFR Base Fee 24.12 Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined
1-5 hcf 6.9 by meter size****by meter size****by meter size****by meter size ****by meter size ****by meter size ****
6-12 hcf 8.04 $7.88/unit volume charge $9.57/unit volume charge $11.73/unit volume charge $9.19/unit volume charge $9.19/unit volume charge $9.19/unit volume charge
13 +14.74
2024 Residential SFR Base Fee 28.15 Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined
1-5 hcf 7.94 by meter size****by meter size****by meter size****by meter size ****by meter size ****by meter size ****
6-12 hcf 9.16 $8.91/unit volume charge $9.43/unit volume charge $9.63/unit volume charge $9.44/unit volume charge $9.44/unit volume charge $9.88/unit volume charge
13 +15.79
*hcf = 100 cubic feet
** Total monthly volume charge capped based on average winter water consumption.
*** Beginning FY 18-19, different rate structures for SFR, Multi-Family, Commercial, and Landscape
****See table below
*****2020-21 rate increase deferred to February 1, 2021 due to COVID-19
Notes:
1. Rates are for services inside the City, outside the City rates are double.
2. Third tier applies only to single-family residential customers.
Source: City of San Luis Obispo Utilities Department
As of Water Sewer As of Water Sewer
June 30 of Each Year Base charge Base Charge June 30 of Each Year Base charge Base Charge
2021*****3/4 inch or less 22.52$ 20.43$ 2022 3/4 inch or less 23.31$ 21.15$
1-inch 37.60 34.12 1-inch 38.92 35.31
1.5-inch 75.04 68.02 1.5-inch 77.67 70.40
2-inch 120.06 108.88 2-inch 124.26 112.69
3-inch 225.27 204.28 3-inch 233.15 211.43
4-inch 375.50 340.53 4-inch 388.64 352.45
6-inch 750.82 680.85 6-inch 777.10 704.68
8-inch 1,201.35 1,089.40 8-inch 1,243.40 1,127.53
10-inch - 1,566.17 10-inch - 1,620.99
2023 3/4 inch or less $24.12 $21.89 2024 3/4 inch or less $28.15 $23.58
1-inch 40.28 36.55 1-inch 47 39.37
1.5-inch 80.38 72.86 1.5-inch 93.75 78.51
2-inch 128.61 116.63 2-inch 150.05 125.67
3-inch 241.31 218.83 3-inch 281.5 235.78
4-inch 402.24 364.78 4-inch 469.25 393.04
6-inch 804.3 729.34 6-inch 938.25 785.85
8-inch 1,286.92 1,166.99 8-inch 1,501.25 1,257.40
10-inch - 1,677.72 10-inch - 1,807.71
Water Rates (Note 1)Sewer Rates (Monthly)
Continued
Base fee charges for Multi-Family, Non-Residential, Irrigation
Meter Size
Base fee charges for Multi-Family, Non-Residential, Irrigation
Meter Size
230
Service Water Use Percent of
Name Type (acre-feet) Total
City of San Luis Obispo Parks & Golf Landscape 91.66 1.6%
Silver City Mobile Home Park Mobile Homes 50.94 1.1%
CAP VIII - Mustang Village LLC Apartments 50.30 0.8%
Sierra Vista Hospital Care Facilities 45.27 0.6%
Dignity Health #366 Care Facilities 42.99 0.6%
ELL-CAP 97-Laguna Lake Community Mobile Homes 42.42 0.6%
Creekside Community Mobile Homes 30.95 0.5%
Embassy Suites Hotel 24.55 0.5%
SLO Coastal Unified School 22.83 0.4%
Rancho San Luis Mobile PK Utility 18.00 0.3%
All Other 92.9%
Total 419.91 100.00%
2023-24
Source: City of San Luis Obispo - Utilities Department
Schedule 26
City of San Luis Obispo, California
Water System - Ten Largest Water Users
Fiscal Year Ended June 30, 2024
1.6%
1.1%
0.8%0.6%
0.6%
0.6%
0.5%
0.5%
0.4%0.3%
Ten Largest Water Users
City of San Luis Obispo Parks & Golf
Silver City Mobile Home Park
CAP VIII - Mustang Village LLC
Sierra Vista Hospital
Dignity Health #366
ELL-CAP 97-Laguna Lake Community
Creekside Community
Embassy Suites
SLO Coastal Unified
Rancho San Luis Mobile PK
92.9%
7.1%
Ten Largest Water Users vs All
Other Water Users
All Other
Top 10
231