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Home My WebLink AboutItem 6c. FY 2024-25 Q3 Budget Report Item 6c Department: Finance Cost Center: 2002 For Agenda of: 5/20/2025 Placement: Consent Estimated Time: N/A FROM: Emily Jackson, Finance Director Prepared By: Riley Kuhn, Principal Budget Analyst SUBJECT: FY 2024-25 Q3 BUDGET REPORT RECOMMENDATION Receive and file the FY 2024-25 Q3 Budget Report. POLICY CONTEXT The City’s budget policies require that the City Council review the City’s budget and financial condition at least every six months. City Charter Code Section 804 states that at any meeting after the adoption of the budget, the Council may amend or supplement the budget by motion adopted by a majority vote of the Council. The Third Quarter (Q3) Budget Report (Attachment A) is part of the ongoing quarterly reporting process and fulfills these requirements. The review allows the Council to adjust revenue and expenditure assumptions should the need arise. The accompanying Budget Report for FY 2024-25 Q3 provides a review of the City’s financial results as compared to budget three quarters through the fiscal year. DISCUSSION Budget Report Organization The budget report follows a standard format in line with recent quarterly budget updates and is intended to provide a high level overview of fiscal performance for the General Fund, the four major enterprise funds, and the special revenue funds. The report (Attachment A) includes the following sections: General Fund Summary: Three quarters through the year, no new risks to budget attainment have emerged. As detailed in the second quarter report, sales tax and development fee revenues are expected to underperform expectations. Expenditures are trending broadly in line with expectations and at this point . Staff do not see risk to fund balance at year end. Storm Update: Consistent with prior quarterly reports, the Q3 report includes a summary of costs incurred to date to address damage caused by the Winter 2023 storms. The Page 27 of 555 Item 6c report also includes an update on the status of reimbursements expected from the Federal Emergency Management Agency and California Office of Emergency Services. Water Fund Summary: Year to date results are generally in line with expectations and staff do not expect significant variances to budget at year end. Sewer Fund Summary: Year to date results are generally in line with expectations and staff do not expect significant variances to budget at year end. Parking Fund Summary: Parking revenue is trending below expectations. This revenue shortfall is attributed to enforcement issues at certain parking structures , which staff believe have been addressed. Transit Fund Summary: Year to date results are generally in line with expectations and staff do not expect significant variances to budget at year end. Special Revenue Fund Summaries: All special revenue funds are expected to finish the year in line with their budgets. CIP Update: The report provides an update on the tasks ongoing or completed during the third quarter of the year. Notable projects completed in Q3 include the North Chorro Greenway Underbelly Painting and Lighting, the installation of gated parking equipment at the 842 Palm Parking Garage, and the 2024 Roadway Sealing Project, which included upgrades to the Damon Garcia Sports Field Complex parking lot and the Johnson Park parking lot. Major City Goals Update: The report provides an update on the Major City Goal tasks originally scheduled to be completed during the third quarter of the year. Two tasks had original completion dates in Q3: Task 4.3a, Higuera Complete Streets, and Task 4.3b, South / King Crossing, are both Active Transportation Plan Tier 1 projects and are now expected to be completed in FY 2026-27 Q1 and FY 2025-26 Q4 respectively. The report includes additional information on the projects and their delays. Previous Council or Advisory Body Action Council adopted the FY 2024-25 Supplemental Budget on June 4, 2025. The first quarter budget report was presented to Council on December 10, 2024 , and the second quarter budget report was presented on February 18, 2025. Public Engagement Public engagement on the item can be provided to the City Council through written correspondence prior to the meeting or through public testimony at the meeting. The report will also be posted on the City’s website for public review. Page 28 of 555 Item 6c ENVIRONMENTAL REVIEW The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report because the action does not constitute a “Project” under CEQA guidelines Sec. 15378. FISCAL IMPACT Budgeted: Yes Budget Year: 2024-25 Funding Identified: Yes Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $ $ $ $ State Federal Fees Other: Total $0 $0 $0 $0 The report contains valuable information to keep the Council and Community informed about the City’s financial standing and program efforts. There is no fiscal impact associated with the recommendations contained in the report. ALTERNATIVES Council could direct staff to amend the budget. Should Council pursue this option, staff would seek direction on specific amendments and then amend the budget as requested. ATTACHMENTS A - FY 2024-25 Q3 Budget Report Page 29 of 555 Page 30 of 555 1 Third Quarter Financial Report Fiscal Year 2024-25 Introduction This financial report provides an overview of the City’s revenues and expenditures through the third quarter of the fiscal year (July 1, 2024 – March 31, 2025). It also provides an update on the status of the City’s Capital Improvement Plan (CIP) projects and progress on Major City Goal tasks. Throughout the document, reference will be made to the data available as of the time the report was drafted. Revenues are often not available for two months after quarter-end or more and in some cases, revenues are not received evenly throughout the year. Expenditures are often recorded in advance for annual costs or for purchase orders opened at the beginning of the year. The net impact is that actual results booked three quarters into the year should not always be expected to equal 75% of budgeted amounts. Commentary will be provided only when analysis suggests that full-year results may differ significantly from budget. Table of Contents General Fund Summary…………………………………………………………………2 Storm Update………………………………………………………………………. ……5 Water Fund Summary……………………………………………………………………8 Sewer Fund Summary…………………………………………………………………..10 Parking Fund Summary………………………………………………………………...12 Transit Fund Summary………………………………………………………………….15 Special Revenue Summaries……………………………………………………….… 17 CIP Update………………………………………………………………………….……22 Major City Goal Update…………………………………………………………………25 Page 31 of 555 2 General Fund Summary Three quarters through the year, two areas of risk to revenue budget attainment remain elevated. As noted in the Second Quarter Budget Report, sales tax has not grown as expected and development review fees are in decline. Expenditures are trending broadly in line with expectations, and at this point, staff do not see risk to fund balance at year end. The tables below detail year-to-date results as compared to budget and prior year actuals. Commentary is provided where results are not in line with expectations. Revenue: Tax Revenue: Sales Tax (including Local Revenue Measure & Prop 172 Safety Tax): Year-to-date results include July through January only as the California Department of Tax and Fee Administration reports on a two-month delay. The budget assumed a return to typical growth rates in sales tax revenue driven by reductions in interest rates that are no longer expected to materialize. Recent statewide forecasts from the City’s consultants have been revised downwards based on macroeconomic conditions and, as a result, staff expect risk to budget attainment. Property Tax: The City participates in the Teeter Plan, which means that the City is not exposed to delinquent payments and can reasonably expect to collect 100% of budgeted amounts. Staff expects to exceed budget by year-end. FY 2023-24 FY 2024-25 General Fund Actual Budget YTD Actuals % Received Tax and Franchise Revenue 102,258,726$ 104,967,371$ 64,765,070$ 62% Local Revenue Measure G 30,597,288 31,855,000 17,871,298 56% Sales Tax (Bradley Burns)22,285,972 23,962,099 13,315,699 56% Property Tax 23,723,431 23,446,385 15,457,996 66% Transient Occupancy Tax 11,063,012 10,586,256 6,915,102 65% Utility User Tax 6,301,505 6,622,639 4,552,277 69% Business Tax 2,941,928 3,317,338 3,161,619 95% Cannabis Tax 1,116,495 1,100,000 713,841 65% Franchise Fees 2,366,286 2,091,800 1,443,076 69% Gas Tax 1,341,857 1,419,353 978,374 69% Safety Prop 172 520,952 566,500 355,787 63% Fees and Other Revenue 18,689,524 22,557,685 13,123,021 58% Development Review 6,168,815 6,585,331 3,811,982 58% Parks & Recreation 2,413,314 2,060,627 1,576,521 77% Fire 1,731,537 1,577,836 1,156,298 73% Police 1,022,488 654,645 596,743 91% General Government 7,353,369 2,946,959 5,981,478 203% Storm Reimbursement - 8,732,287 - 0% Total 120,948,251$ 127,525,055$ 77,888,092$ 61% Page 32 of 555 3 Business Tax: This tax is due at the beginning of the year and should be largely collected. Staff notes that collections are up more than 7% from the prior year due to a combination of improved compliance efforts and collection of past-due prior year receipts. Staff issued the first of three rounds of citations at the end of January for past due business tax and expect collections to increase before year end. The second round of citations was issued in March. Both efforts were successful in bringing delinquent operators into compliance. As of the writing of this report, staff expects to send the third and final round of citations out to approximately 330 operators who are still out of compliance. Cannabis Tax: The legal cannabis industry has faced headwinds statewide and based on current year trends, cannabis revenue is expected to underperform budget by at least $0.1M. While other tax revenue categories show year to date results lower than 75%, staff do not expect significant variances for the full year. Fee & Other Revenue: Development Review Fees: This revenue stream finished 2% below budget last fiscal year and is pacing to finish the year as much as $1.5M below budget in the current fiscal year, which would be 23% below anticipated revenues for the year. This downward trend in development and related fees aligns with nationwide trends due to external factors such as high interest rates, political uncertainty, and elevated construction, labor, land, and energy costs. This trend could also suggest a leveling out of development in the City, after several years of development occurring at a high pace due to several large-scale projects and the build-out of several subdivisions. As a result of applications being down, Community Development is completing the vast majority of plan checks in-house. This preserves the consultant budget, which would typically be expended if there were more projects. The Director has directed program managers to pay close attention to discretionary budgets for the remainder of the fiscal year and the Department has kept a Permit Tech Position vacant. In addition, Community Development has re-forecasted the anticipated development revenue in the next financial plan, taking into consideration the trends that have emerged this year. General Government: This line includes earnings on cash and investment balances which have benefited greatly from elevated interest rates. Staff expect cash interest payments to outperform budget once again, although to a lesser degree due to recent policy actions by the Federal Reserve. Staff also caution that if interest rates do not decrease throughout the year as expected, this may result in negative fair market value adjustments1. Storm Reimbursement: Staff’s original assumption was that the City would receive reimbursement for Winter 2023 Storm expenditures from the Federal Emergency Management Agency (FEMA) and the California Office of Emergency Services (CalOES) within 12 months. That timeframe passed in October 2024 and the City has yet to receive reimbursement, despite 1 Fair Market Value adjustments are non-cash adjustments to investment income that reflect changes in the current market price of our bond holdings. Bond values are inversely correlated with interest rates, so if interest rates do not fall as expected the adjustment will reduce revenue. If rates fall more quickly than expected, the adjustment will increase revenue. Because the City generally holds investments until maturity, we do not expect any cash impact from these changes in fair value. Page 33 of 555 4 the fact that FEMA has obligated some of the City’s projects. More information is included in the ‘Storm Update’ section of this report. Though other fee categories show year-to-date results other than 50% of budget, staff do not expect significant variances for the full year. Operating Expenditures: Staffing: Salaries and benefits are as expected at this point in the year. If vacancies and overtime utilization continue at this rate, this indicates year end staffing savings of at least 4%. Unfunded Pension Liability: This annual cost is prepaid upfront. Savings are realized as a result of this prepayment. Contract Services: Actuals for this budget line include obligations on open purchase orders. While 79% of budget has been obligated or expended, just 54% has been paid to vendors. Staff expect modest savings at year-end. Other Operating Expenditures: Similar to Contract Services, actuals for this line include obligations on open purchase orders and just 59% of budget has been expended. Staff expect modest savings at year-end. While the year to date results for the General Fund as a whole are largely as expected, the following areas of risk to operating budgets stand out: FY 2023-24 FY 2024-25 General Fund Expenditures Actual Budget YTD Actuals % Expended Staffing 55,754,042$ 62,709,295$ 44,616,329$ 71% Unfunded Pension Liability 12,994,935 12,886,419 12,682,728 98% Contract Services 10,721,258 13,420,932 10,650,884 79% Other Operating Expenditures 7,674,086 8,600,833 6,392,098 74% Total 87,144,321$ 97,617,478$ 74,342,039$ 76% FY 2023-24 FY 2024-25 Operating Expenditures by Department Actual Budget YTD Actuals % Expended Admin/IT 10,767,778$ 12,208,276$ 9,177,290$ 75% City Attorney 1,472,411 1,898,569 1,389,846 73% Community Development Department 7,157,271 9,772,915 6,904,101 71% CSG Admin 829,900 666,056 410,128 62% Finance 2,275,677 2,661,555 1,998,003 75% Fire 15,960,639 18,087,494 14,683,613 81% Human Resources 2,179,463 2,046,878 1,537,145 75% Non-Dept/Support Services 403,735 1,083,110 220,554 20% Parks & Recreation 5,414,249 6,031,062 4,370,014 72% Police 23,233,179 23,882,116 19,529,330 82% Public Works 17,038,967 18,867,172 13,815,389 73% Utilities 411,052 412,275 306,626 74% Total 87,144,321$ 97,617,478$ 74,342,039$ 76% Page 34 of 555 5 Fire Department: Several vacant positions are driving higher than expected overtime expenditures. Four firefighter positions were vacant until March, when four new recruits began the department’s internal, ten-week training academy. The academy finishes in early May, followed by a three to six-week paramedic certification period, when the new hires will fill the vacant positions, and overtime will no longer be a daily necessity. The department will utilize all means to reduce impacts to the budget, including the offset of unused regular salaries from the vacancies. Staff expect this year’s increased mutual aid revenue resulting from the high fire activity around the state and other reimbursements will provide budget capacity to cover staffing costs for the remainder of the year. Police: Total staffing expenditures are trending higher than budget and it is likely that the department will be over-expended in staffing at year end. The main contributor is a Police Officers Association labor contract increase which, as is typical for labor negotiations, is included in the non-departmental budget. Including the labor contingency amount, the department is expected to finish under budget. Storm Update As noted in prior budget reports, the winter storms in January and March 2023 caused significant damage to City infrastructure and resulted in emergency declarations at the Federal and State level, in addition to the Emergency Services Director’s local emergency proclamation. The City Council authorized use of up to $9 million from the City’s operating reserve in FY 2022‐23 and FY 2023‐24 to address unbudgeted storm costs, and with adoption of the 2023‐25 Financial Plan, the City Council also allocated $2.75 million in the CIP to fund projects to repair storm damages and mitigate against future damage. An additional $2.1 million was allocated to storm damage repair with adoption of the FY 2024‐25 Supplemental Budget. The Federal and State declarations enable the City to seek reimbursement for certain storm related costs. The maximum reimbursement for eligible costs is 93.75% (75% from the Federal Emergency Management Agency (FEMA) and 18.75% from the California Office of Emergency Services (CalOES)), meaning that the City will pay a minimum of 6.25% for certain storm related costs. The FEMA reimbursement process continues to move slowly due to turnover in the FEMA Program Delivery Managers assigned to assist local agencies in submitting projects for reimbursement and a lack of clarity about the information required in order to submit projects. While the Disaster Relief Fund (which funds public assistance to impact agencies) was allocated additional funding, the newly formed Department of Government Efficiency (DOGE) is now focused on FEMA programs. As reported last quarter, the new Federal administration has previously signaled the possibility of disaster response shifting to states. Given all of the changes at the Federal level, it is expected that FEMA processes will slow even more. The City has expended approximately $13.5 million on storm response to date, including debris removal, emergency protective measures, and projects to make permanent repairs to damaged facilities. This amount is approximately $2 million lower than what was reported in the FY 2024- 25 Second Quarter Budget Report, due to Oracle double-counting purchase orders and invoices, which has since been corrected. The $13.5 million is close to what was reported in the First Quarter Budget Report, as many projects are in the design phase and significant costs have not been incurred. Currently, the estimated total cost to repair all storm related damage is $48.4 million, consistent with what was reported in prior reports. As previously noted, all storm‐related expenditures have been submitted to FEMA for reimbursement and are in various stages of Page 35 of 555 6 FEMA’s review and evaluation process. As of the writing of this report, a total of nine projects totaling $717,125 have been obligated by FEMA, meaning that FEMA has determined that reimbursement should be provided. Once a project is obligated, notification is made to the State for payment. Agencies typically receive payment within three months of a project being obligated, but CalOES has reported that the timeline has slowed due to a significant volume of reimbursement payments to process. CalOES has provided the City with notification that payments are currently being processed for five of the City's projects. As reported in prior quarters, staff has struggled to navigate FEMA processes due to inconsistent guidance provided by FEMA Program Delivery Managers, inaccurate FEMA site inspections and lack of clarity about what jurisdiction certain projects fall under. In early May, staff met with a representative from Congressmember Salud Carbajal’s office, and as a result of that meeting, the Congressmember ’s office will be writing letters on the City’s behalf to try to move submitted projects forward, through FEMA’s process. Based upon staff delivery capacity, FEMA reimbursement timeframes, and the upcoming 2025‐ 27 Financial Plan process, staff continues to work on the highest priority storm damage projects in order to advance them for funding consideration with the 2025‐27 Financial Plan and will continue the process to obtain FEMA reimbursement during the delivery process. The two tables below provide an overview of the status of storm projects. The first table details all storm projects that staff believe should advance, including their respective current phases and the percentage of work completed to date. All of these projects have been included as part of the 2025-27 Financial Plan. The second table outlines work that is not deemed urgent at this time and will be assessed as part of a future financial plan. Staff continue to monitor these sites to access priorities. Page 36 of 555 7 Page 37 of 555 8 Water Fund Summary The Water Fund’s year-to-date results are generally in line with expectations, showing expected trends across revenue and expenditure categories. Revenue: Revenues are 87% received as of report drafting, which is in line with anticipated revenue collection at this point in the fiscal year. Staff are monitoring collections and do not expect a significant variance in budget by year end. Investment and Property Revenue: This line includes earnings on cash and investment balances. The fund has benefited from the current interest rate environment and exceeds its revenue budget as budgets are set conservatively in case earnings on investments are low. The higher interest earnings can help offset other revenue shortfalls, should they occur, and strengthen the Water Fund’s financial position. Other Revenue: The Other Revenue line item is primarily funded from Transfers In revenues, which come from Development Impact Fees. Actuals show as overrealized, because Impact Fees for water are budgeted for under the individual fund that they are received in to and are then transferred to the Water Fund during the annual AB 1600 review and reporting process. The Other Revenue line item also includes Other City Licenses and Permits (recycled water construction water permits), Miscellaneous Penalties (customer late fees), Credit Collections, Sales of Surplus Property, Development Review Fees, and Utilities Setup Fees. Service Charges and Base Fees: Service Charges and Base Fees are currently showing an under-collection, primarily due to a timing gap between the receipt of revenue and their allocation in the accounting system. Specifically, sales to Cal Poly and Water Sales are impacted by this timing delay, leading to a temporary misalignment in reported revenues. These discrepancies are expected to be resolved by year-end as accounting processes catch up with the actual collections. State Grants: Funds received are attributable to a Proposition 1B Grant, which aligns with the funding levels projected. These funds were received this fiscal year as a result of modified project schedules. Staff are actively coordinating with the grant administrators to ensure compliance with reporting and administrative requirements for disbursements. FY 2023-24 FY 2024-25 Water Revenue Actual Budget YTD Actuals % Received Cal Poly Capacity & Resilience 233,025 263,433 270,828 103% Investment and Property Revenue 1,759,115 50,000 948,810 1898% Other Revenue 525,148 240,694 2,924,639 1215% Service Charges and Base Fees 26,088,324 28,102,022 19,842,646 71% State Grants 613,814 - 860,876 Total 29,219,426$ 28,656,148$ 24,847,799$ 87% Page 38 of 555 9 Expenditures: Staffing: As of the current reporting period, 66% of the staffing budget has been expended. Budget savings are driven by multiple vacancies throughout the department, as unfilled positions have temporarily reduced personnel costs. Some staffing savings are being spent on approved staffing requests to address these vacancies, including the hiring of a retired annuitant who has been helping fill the Utility Billing vacancy. The Fund remains on track and within budget with these approved costs. Unfunded Pension Liability: This annual cost is fully prepaid at the beginning of the fiscal year. This prepayment strategy results in savings over the course of the year, as it reduces accruals and maximizes the impact of the payment. Contract Services: The Contract Services budget line reflects a significant portion of obligations tied to open purchase orders, many of which are created at the start of the fiscal year for larger, ongoing contracts. Many contracts are structured around milestone-based payments or periodic billing cycles, meaning payments lag behind the recorded obligations. Staff anticipate no variance from the budget by year-end, as these expenditures align with the scope and timelines of contracted services. Other Operating Expenditures: Similar to the Contract Services category, the Other Operating Expenditures line includes obligations tied to open purchase orders. This line also accounts for significant annual prepayments for key water sources of supply, including Nacimiento, Salinas, and Whale Rock. These prepayments ensure a stable and predictable supply of water, supporting operational needs and reducing the risk of funding shortfalls. By making these payments upfront, the organization safeguards against future cost increases or potential disruptions. FY 2023-24 FY 2024-25 Water Expenditures Actual Budget YTD Actuals % Expended Staffing 4,594,003$ 5,082,715$ 3,343,941$ 66% Unfunded Pension Liability 833,466 789,926 779,802 99% Contract Services 810,950 1,212,318 929,843 77% Other Operating Expenditures 11,882,398 15,566,981 13,975,881 90% Total 18,120,818$ 22,651,940$ 19,029,468$ 84% Page 39 of 555 10 Sewer Fund Summary The Sewer Fund’s year-to-date results are generally in line with expectations. Revenue: Investment and Property Revenue: This line includes earnings on cash and investment balances. Budgets for investment income are set conservatively because changes in fair market value could lead the City to recognize negative investment income. The fund has benefited from the current interest rate environment and now exceeds its revenue budget for this account line. The higher interest earnings can offset other revenue shortfalls, should they occur, and strengthen the Sewer Fund’s financial position. Other Revenue: The Other Revenue line item is primarily funded from Transfers In revenues, which come from Development Impact Fees. Actuals show as overrealized, because Impact Fee revenues for sewer are budgeted for under the individual fund that they are received into and are then transferred to the Sewer Fund during the annual AB 1600 review and reporting process. The Other Revenue line item also includes sources contributed positively to the fund’s position. Miscellaneous Penalties (customer late fees), and Utilities Set-up Fees, Administrative Citations, Credit Collections, Sales of Surplus Property, Development Review Fees, and Sewer Wye Abandonment and Installations. Together, these sources provide supplemental financial support to the budget, reflecting a diverse revenue base. State Grants: Funds received are attributable to a CalOES Grant at the Water Resource Recovery Facility (WRRF) and aligns with the grant funding levels projected. These funds were received this fiscal year as a result of modified project schedules. Staff are actively coordinating with the grant administrators to ensure compliance with reporting and administrative requirements for disbursements. Long-Term Debt Proceeds: Borrowings associated with the long-term debt proceeds are intended to fund the construction of the WRRF and were initially budgeted for FY 2023-24. The timing of these borrowings is contingent upon the progress of construction activities, which may not always align with the original budgetary projections. As a result, fluctuations in the timing of debt issuance are being carefully monitored to ensure that financing remains available. Service Charges and Base Fees: Similar to the Water Fund, Service Charges and Base Fees show as under-collected due to a timing lag between revenue collection and revenue allocation. Despite this temporary discrepancy, staff do not anticipate significant variances in this revenue category by the end of the fiscal year. FY 2023-24 FY 2024-25 Sewer Revenue Actual Budget YTD Actuals % Received Cal Poly Capacity & Resilience - 472,534 472,534 100% Investment and Property Revenue 2,592,653 50,000 1,566,239 3132% Other Revenue 497,324 224,000 1,268,259 566% Service Charges and Base Fees 19,893,378 20,052,366 13,892,344 69% State Grants 887,167 - 197,070 Long Term Debt Proceeds 15,353,992 - 13,405,480 Total 39,224,514$ 20,798,900$ 30,801,925$ 148% Page 40 of 555 11 Expenditures: Staffing: At 66% expended, the primary driver of budget savings for the Sewer Fund is also unfilled positions. These vacancies led to reduced personnel costs during the first and second quarters of the fiscal year. Recognizing the importance of maintaining operational capacity and service delivery, some staffing savings are being spent on approved staffing increases, including outsourcing specific functions and internal promotions. Efforts to address the staffing gaps include proactive recruitment campaigns, streamlining the hiring process to reduce time-to-hire, and leveraging all available resources to attract and secure qualified candidates. Unfunded Pension Liability: This annual cost is fully prepaid at the beginning of the fiscal year. This prepayment strategy results in savings over the course of the year, as it reduces accruals and maximizes the impact of the payment. Contract Services: Actuals for this budget line include obligations on open purchase orders. Staff do not expect a variance to the budget at year-end. The discrepancy is due to the timing of payments, as many of the services are invoiced and paid after work is completed or milestones are achieved. Other Operating Expenditures: Like Contract Services, actuals for this line include obligations on open purchase orders. As of the reporting date, 63% of the budget has been paid to vendors. This approach safeguards budget stability and ensures that key expenditures can be met as obligations are fulfilled. FY 2023-24 FY 2024-25 Sewer Expenditures Actual Budget YTD Actuals % Expended Staffing 4,558,064$ 5,113,385$ 3,367,064$ 66% Unfunded Pension Liability 851,453 782,976 772,941 99% Contract Services 1,256,919 1,345,978 1,315,494 98% Other Operating Expenditures 2,647,401 2,874,769 2,028,178 71% Total 9,313,836$ 10,117,108$ 7,483,678$ 74% Page 41 of 555 12 Parking Fund Summary The Parking Fund’s year-to-date results indicate that the fund will underperform against its revenue targets for the year. The revenue budget is based on the 2024 Rate Study report projections, with reduced rates effective July 1, 2024. Overall, staff is estimating a $1.48M shortfall in FY 2024-25 Parking Fund actual revenues compared to the budgeted amount. The Parking Fund has adequate reserves to absorb the estimated one-time revenue shortfall. Additionally, staff are reducing expenditures in accordance with the Fiscal Health Contingency Plan and intend to use fund balance to address this year’s revenue shortfall, while continuing to resolve the technology issues affecting revenue collection. There is approximately $5.9M unreserved working capital from the year end of FY 2023-24. Additional analysis and commentary can be found below: Revenue: Overall, there were some unexpected failures in the technology systems which resulted in less overall revenue in the first half of the fiscal year. It is expected that the use of new technology recommended in the Technology Roadmap report will help to address some of the current revenue shortfall this year and achieve 2024 Rate Study revenue projections moving forward into future years. Recently completed projects this spring include implementation of a new citation management system and new gated system at 842 Palm garage. Long Term Parking: Revenue from long term parking includes sales of on-street permits, residential district permits, and garage parking permits. The price of garage parking permits was reduced from $85/month to $45/month effective July 1, 2024. The reduction in permit costs was not forecasted in the Rate Study but was adopted by Council based on staff’s recommendations. Permit sales have increased due to the price reduction, but the initial increase did not occur as quickly as anticipated due to technology issues. Permit sales have continued to increase each month since July 1, 2024, and are expected to continue to increase with the launch of a new digital permit platform in April 2025 and the installation of the new gating system at 842 Palm Street. The initial reports from the new digital permit platform show an increase in permit sales, most likely related to the new gating system at the 842 Palm Street garage however the increase in permit sales remain unlikely to meet the revenue projections presented in the Rate Study, due the reduced price of the permit. The availability of garage permits is advertised with signs in the garages, the parking webpages, and printed promotional material. An increased communication FY 2023-24 FY 2024-25 Parking Revenue Actual Budget YTD Actuals % Received Long Term Parking 702,797 901,906 430,435 48% Parking Fines 1,190,030 1,252,200 789,971 63% Parking Meters 5,927,488 4,312,367 3,441,137 80% Parking Structures 1,757,776 2,860,504 1,121,485 39% Other Revenue 3,733,272 664,884 690,895 104% Total 13,311,364$ 9,991,861$ 6,473,923$ 65% Page 42 of 555 13 plan advertising garage permits will be rolled out when all garages have a consistent gating system. Staff expects to miss budget this year by $325,000, based on year-to-date actuals. Parking Fines: Revenue from parking fines includes all revenue collected from paid parking citations. Citation revenue has decreased due to collection issues caused by the prior citation management vendor and staff turnover. Consistent with the Technology Roadmap recommendations, the City completed implementation of a new citation management vendor in March 2025. As of the end of March 2025 when all citation data was converted to the new citation management vendor, there were 24,616 unpaid citations with a total balance due of $1,717,310. While all citations may not be collected, the collection of even a portion of the unpaid citations could significantly impact citation revenue. With the vendor change and updated noticing to those with unpaid citations, revenue is expected to increase. It is highly likely that the bulk of this citation revenue will be realized in FY 2025-26. Based on year-to-date actuals, there is an expected budget deficit of $295,000 in Parking Fines Revenue. However, based on collection reports from the initial noticing sent by the citation management vendor in April, staff expects to recover the deficit amount in Q4 and does not expect significant variances to budget by year-end. Parking Meters: Revenue from parking meters includes hourly parking sessions from on-street and surface parking lot areas as well as mobile app payments. Even with the reduced parking rates, parking meter revenue is tracking slightly higher than budget. This provides a strong indication that on-street parking activity is increasing with the reduced parking rates now in effect. Staff does not expect significant variances to budget by year-end. Parking Structures: Parking structures revenue was negatively impacted by the operation of a gateless parking system at the 842 Palm Street garage. In November 2024, Council approved appropriation of $1.2 million from Parking Fund balance for the purchase of new garage payment and gating equipment for 842 Palm Street garage, as well as 919 Palm Street and Marsh Street garages. New gating equipment will provide better access and revenue controls that staff anticipates will increase revenue collections. The equipment at 842 Palm Street was replaced in March 2025, but will not be in operation long enough to make up for revenue losses in the current fiscal year. The first 30 days of operation of the new gated system at 842 Palm Street has shown a significant increase in revenue and revenues are expected to meet the projected budget in future years. Once the new gated system has been installed on the remaining City Parking Garages which are the 919 Palm and the Marsh Street garages, Staff expect to meet revenue projects for Parking Garages. Currently, Staff expects to miss budget by $1,160,000, based on year-to-date actuals. Operating Expenditures: FY 2023-24 FY 2024-25 Parking Expenditures Actual Budget YTD Actuals % Expended Staffing 1,735,699$ 1,849,702$ 1,270,668$ 69% Unfunded Pension Liability 238,826 244,373 241,241 99% Contract Services 862,591 782,601 640,606 82% Other Operating Expenditures 967,528 965,304 672,450 70% Total 3,804,644$ 3,841,980$ 2,824,965$ 74% Page 43 of 555 14 Staffing: The staffing budget is 69% expended through the first three quarters of the fiscal year due to vacancies in multiple administrative and enforcement positions. These vacant positions have since been filled. Unfunded Pension Liability: This annual cost is prepaid upfront. A slight savings is realized as a result of this prepayment. Contract Services: Actuals for this budget line include obligations from open purchase orders. While 82% of the budget has been obligated or expended, just 55% has been paid to vendors. Staff does not expect a variance to budget at year-end. Other Operating Expenditures: This line includes utility services, credit card merchant fees, and operational materials and supplies. So far, 70% of the budget has been expended. Due to lower than budgeted revenues, staff expect savings of $40,000 in credit card merchant fees, corresponding with revenue trends. Page 44 of 555 15 Transit Fund Summary The Transit Fund’s year-to-date results are generally in line with expectations. Staff note that the Transit Fund is largely funded by Federal and State grants. As such, staff are monitoring the new administration’s executive orders, budget recommendations, and actions and what effects they may have on the availability of future federal funds. Revenue: Federal: This line includes capital and operating revenue from discretionary and formula federal grants. Discretionary grants are competitive in nature and are included in the budget to offset related capital costs, but they are not guaranteed. Formula grants are typically allocated to the region and the amount is calculated using various factors like population and transit metrics. Both discretionary and formula grants are reimbursement-based grants, meaning funds are disbursed after expenses have been incurred. In April 2024, staff applied for $5.1 million in discretionary grant funding for the purchase of additional battery electric vehicles. The funding request was not awarded, so this revenue will not be received, and the project budget will be adjusted accordingly. The City continues to draw down on the American Rescue Plan Act (ARPA) operating funds awarded to the City in 2022. Drawdowns occur quarterly to align with federal reporting requirements. Five total drawdowns for both operating and capital expenses are reflected in the table above. There has been no communication from the U.S. Department of Transportation or Federal Transit Administration (FTA) that active grants like the ARPA operating assistance grant are at risk of loss of funding. Staff continues to submit draw down requests and, as of March 2025, funds continue to be disbursed. Staff expects that ARPA operating assistance funds will be available for the remainder of this fiscal year and that approximately $2.7 million (22 percent of total budgeted revenue) will be available next fiscal year to cover operating costs. Remaining operating costs will be covered through a combination of FTA Section 5307 funds and Transportation Development Act (TDA) revenue. Local (Bus Fare): This line includes fares paid on the bus, pass sales, and revenue from Cal Poly’s Transit Service Agreement. Staff expects minimal variance at year-end. Other / Interest Revenue: This line includes earnings on cash, investment balances, and sale of surplus property. Revenue from interest and investments are diff icult to accurately estimate, so the Transit Fund budgets conservatively for this line. State: This line includes revenue from state and regional discretionary and formula funding sources. Staff expects to receive $2.57 million in TDA revenue based on the San Luis Obispo Council of Government’s (SLOCOG) revised allocation, which is $158,000 less than originally FY 2023-24 FY 2024-25 Transit Revenue Actual Budget YTD Actuals % Received Federal 3,486,773$ 12,469,861$ 3,157,784$ 25% Local (Bus Fare)1,000,790 976,000 748,516 77% Other / Interest Revenue 379,651 - 250,134 State 1,607,897 3,613,325 1,932,290 53% Total 6,475,111$ 17,059,186$ 6,088,723$ 36% Page 45 of 555 16 budgeted. The Transit Fund received $376,368 for two capital projects and was reimbursed $498,473 for the construction of the Transit Yard electric vehicle charging infrastructure project, both of which are reflected in the table above. Expenditures: Staffing: This line is tracking below budget primarily due to limited use of part-time staff. As a result, staff anticipates a slight favorable variance at year-end. Unfunded Pension Liability: This annual cost is prepaid upfront. A slight savings is realized as a result of this prepayment. Contract Services: This line primarily consists of costs paid via a third-party contract to Transdev for SLO Transit’s operations and maintenance services. Actuals for this budget line include obligations on open purchase orders. While 98% of budget has been obligated, just 65% has been paid to vendors. Staff expects a savings of $107,000 at the end of this fiscal year in the Contract Services line item. Other Operating Expenditures: Actuals for this line include obligations on open purchase orders. Staff expects expenditures to be $83,000 greater than budgeted amount due to a 38% increase in average fuel costs per gallon since the beginning of the fiscal year. This variance will be covered by savings in the Contract Services line item discussed above. FY 2023-24 FY 2024-25 Transit Expenditures Actual Budget YTD Actuals % Expended Staffing 328,784$ 344,223$ 221,537$ 64% Unfunded Pension Liability 57,283 45,725 45,139 99% Contract Services 3,592,192 4,630,217 4,514,744 98% Other Operating Expenditures 431,255 424,715 406,837 96% Total 4,409,514$ 5,444,879$ 5,188,256$ 95% Page 46 of 555 17 Special Revenue Fund Summaries Tourism Business Improvement District The Tourism Business Improvement District (TBID) assessment is set at 2% of the lodging industry’s gross receipts. The program annually aligns its operating budget with its anticipated revenues. Revenue: While less than 75% of the budget has been recorded to date, revenue is recorded on a more than one month delay and staff expect to collect the budgeted amount for the full year. Expenditures: The TBID procures many of its services in advance, leading to a high percent of budget expended early in the year. The fund is expected to finish on budget for the full year. Boysen Ranch Conservation Fund Boysen Ranch consists of approximately 116 acres bounded by Los Osos Valley Road, Foothill Boulevard, and O’Connor Way. The City holds a series of conservation easements that protect approximately 25 acres of the Ranch to mitigate impacts to wetlands and waters caused by the nearby commercial development projects on Los Osos Valley Road. As part of the original easement agreement, Boysen Ranch’s owners provided the City with an endowment to fund required monitoring activities. Revenue: The Boysen Ranch Conservation Fund is an endowment fund and its budgeted revenue is provided by investment income. The fund is expected to benefit from the current interest rate FY 2023-24 FY 2024-25 TBID Revenue Actual Budget YTD Actuals % Received Tourism Assessment 2,267,304$ 2,117,251$ 1,382,507$ 65% Other Revenue 56,643 - 28,359 Total 2,323,947$ 2,117,251$ 1,410,866$ 67% FY 2023-24 FY 2024-25 TBID Expenditures Actual Budget YTD Actuals % Expended Staffing 213,472$ 234,328$ 149,597$ 64% Unfunded Pension Liability 43,573 32,234 31,821 99% Contract Services 1,869,690 1,871,237 1,716,996 92% Other Operating Expenditures 20,130 34,100 10,776 32% Total 2,146,866$ 2,171,900$ 1,909,191$ 88% FY 2023-24 FY 2024-25 Boysen Ranch Revenue Actual Budget YTD Actuals % Received Investment Income 18,353$ 2,000$ 10,603$ 459% Total 18,353$ 2,000$ 10,603$ 530% Page 47 of 555 18 environment and meet or exceed its revenue budget, but this could change if fair market value adjustments offset interest income received. Expenditures The fund has made its budgeted payment for authorized conservation activities. Staff expect no further payments this fiscal year and the fund will finish on budget. Insurance Fund The Insurance Fund serves to pay the City’s annual premiums for liability, workers’ compensation, special events, volunteer, and property insurance needed to protect the City and to manage fluctuations in claims‐related expenses. It is also intended to maintain adequate reserves for future claims and unpredictable increases in insurance costs. Revenue: Insurance Fund revenues are transfers in from the General Fund and will finish on budget. Expenditures: While recent actions to reduce premiums for Workers’ Compensation have delivered savings, additional contributions from the General Fund may be necessary to build and maintain adequate reserves according to City policy and actuarial estimates. The City’s Fund Balance and Reserve Policy establishes that the Insurance Fund will maintain funding to cover 150% of the average claim costs for the past five years. The policy also states that actuarial information will be taken into consideration. Based on the most recent actuarial study dated November 18, 2024, the City should maintain a reserve of $3,392,000 for liability claims and $1,578,000 for workers’ compensation claims, totaling $4,970,000, if funding at a 75% probability level. The insurance fund reserve is anticipated to be $2,891,767 at the end of FY 2024-25. This is below the lowest probability level provided by the actuary, which is 55%, or a reserve of $4,553,000. FY 2023-24 FY 2024-25 Boysen Ranch Expenditures Actual Budget YTD Actuals % Expended Contract Services 9,135 10,136 10,136 100% Total 9,135$ 10,136$ 10,136$ 100% FY 2023-24 FY 2024-25 Insurance Fund Revenue Actual Budget YTD Actuals % Received Transfers In 6,333,317$ 6,000,000$ 4,500,000$ 75% Total 6,333,317$ 6,000,000$ 4,500,000$ 75% FY 2023-24 FY 2024-25 Insurance Fund Expenditures Actual Budget YTD Actuals % Expended Contract Services 4,754,556$ 5,725,119$ 3,768,453$ 66% Total 4,754,556$ 5,725,119$ 3,768,453$ 66% Page 48 of 555 19 Public Safety Equipment Replacement Fund The Public Safety Equipment Fund (PSEF) was created with the 2019‐21 Financial Plan to help budget and forecast the replacement of Public Safety equipment that has expired or become damaged. The Fund had received an original seed amount with the FY 2019‐20 budget and, going forward, an annual allocation is made from the Local Revenue Measure. Revenue: The fund receives revenue in the form of transfers in from the General Fund and will finish on budget. Expenditures: The fund budgets for replacement of public safety equipment currently in service and is expected to finish the year on budget. San Luis Ranch CFD A Mello‐Roos Community Facilities District (CFD) was established and approved by City Council on April 16, 2019 (Ordinance No 1661) pursuant to section 5.02 of the San Luis Ranch Development Agreement. The boundaries of the CFD are identical to the San Luis Ranch Specific Plan and includes 131.4 acres approved for up to 580 dwelling units and commercial development, a 200‐room hotel, 100,000 square feet of office space, 150,000 square feet of retail space, 7.8 acres of parks/ open space, and 52.3 acres of farmed agriculture land. The purpose of the CFD is to fund major road improvements, potable and non‐potable water system improvements, drainage system improvements, wastewater system improvements, solid waste improvements, park and paseo improvements, open space improvements, and utilities. Revenue: The fund collects property tax from residents under the Teeter Plan with the County and is expected to finish the year on budget or better. FY 2023-24 FY 2024-25 Public Safety Fund Revenue Actual Budget YTD Actuals % Received Transfers In 171,322$ 167,334$ 125,501$ 75% Total 171,322$ 167,334$ 125,501$ 75% FY 2023-24 FY 2024-25 Public Safety Fund Expenditures Actual Budget YTD Actuals % Expended Other Operating Expenditures 601,116 404,020 384,877 95% Total 601,116$ 404,020$ 384,877$ 95% FY 2023-24 FY 2024-25 San Luis Ranch CFD Revenue Actual Budget YTD Actuals % Received Property Tax 1,274,999$ 1,000,250$ 840,375$ 84% Interest on Investment 592,271 - 18,912 Total 1,867,271$ 1,000,250$ 859,287$ 86% Page 49 of 555 20 Expenditures: The fund budgets for authorized expenditures, largely debt service, and is expected to finish the year on budget. Transfers out exceed the budget due to transfers of amounts authorized and budgeted but not transferred in prior years. There is no expected ongoing impact as the transfers will be made annually within budgeted amounts going forward. Avila Ranch CFD A Mello‐Roos Community Facilities District was established and approved by City Council on October 24, 2017 (Resolution No 10844) pursuant to section 5.02.1 of the Avila Ranch Development Agreement. The CFD boundaries are identical to that of the Avila Ranch Development project and located at the northeast corner of Buckley Road and Vachell Lane. The Avila Ranch Project will include up to 720 dwelling units, 15,000 square feet of office and retail, 18 acres of parks, 53 acres of open space, riparian corridors and farm ed agricultural land. The CFD was formed with purpose of funding services as well as facilities of the CFD. Services to be funded can include the maintenance and lighting of parks, parkways, streets, roads, and open space; flood and storm protection services; police & fire protection services; maintenance and operation of real property. Facilities to be funded can include park, recreation, parkway, and open space facilities; construction and undergrounding of utilities (water, natural gas, telephone lines, electric, cable television); for the acquisition, improvement, or rehabilitation of real property. Revenue: The fund collects property tax from residents under the Teeter Plan with the County and is expected to finish the year on budget or better. Ye ar to date results include accruals for tax payments to be made in April and are subject to change. Expenditures: FY 2023-24 FY 2024-25 San Luis Ranch CFD Expenditures Actual Budget YTD Actuals % Expended Contract Services 9,145$ 189,666$ 176,858$ 93% Debt Service 911,650 949,450 927,450 98% Transfers Out 26,530 219,133 826% Total 920,795$ 1,165,646$ 1,323,442$ 114% FY 2023-24 FY 2024-25 Avila Ranch CFD Revenue Actual Budget YTD Actuals % Received Services Special Tax 232,761$ 477,025$ 492,030$ 103% Facilities Special Tax 23,738$ 46,623 49,214$ 106% Investment Income 12,486$ - 7,812$ Total 268,985$ 523,648$ 549,056$ 105% FY 2023-24 FY 2024-25 Avila Ranch CFD Expenditures Actual Budget YTD Actuals % Expended Authorized Services 58,758 252,602 39,661 16% Transfers Out 17,085 110,814 386,517 349% Total 17,085$ 110,814$ 386,517$ 349% Page 50 of 555 21 The fund budgets for authorized service expenditures for maintenance and utilities and is expected to finish the year under budget. Transfers out exceed budget due to the inclusion of amounts authorized and budgeted but not transferred in prior years. There is no expected ongoing impact as the transfers will be made annually within budgeted amounts going forward. Prior year actuals were lower than budget because the development is new, still under construction, and therefore maintenance costs are currently lower than revenues. At full buildout it is expected that costs to serve this neighborhood will exceed revenue and the General Fund will provide services above and beyond what the CFD pays for. All unexpended funds are held in fund balance and are available for expenditure in future years. Page 51 of 555 22 CIP Update During the third quarter of the fiscal year, the City continued to make strong progress in delivering its Capital Improvement Program (CIP) projects, with key advancements in infrastructure, public spaces, and essential facilities. Notable projects completed in Q3 include the North Chorro Greenway Underbelly Painting and Lighting, the installation of gated parking equipment at the 842 Palm Parking Garage, and the 2024 Roadway Sealing Project, which included upgrades to the Damon Garcia Sports Field Complex parking lot and the Johnson Park parking lot. The CIP team also reached substantial completion on the Wash Water Tank #1 and Laguna Lake Dog Park projects. Final work on both is expected to be completed in the fourth quarter. Construction remains active on several legacy projects, including the Mid-Higuera Bypass, Mission Plaza Enhancements, and the Cultural Arts District Parking Structure. These high-profile projects are on track for completion in fiscal year 2025–26. The City also received favorable bids for several new projects that will enter the construction phase in the fourth quarter of FY 2024–25. These include tenant improvements at 1106 Walnut (Police Administration Building), improvements to the 1166 Higuera Parking Lot, the Bob Jones Trail Groundwater Well Drilling project, and the City Hall Finance/IT Remodel. In preparation for the 2025–27 Financial Plan, staff is also gearing up to launch new CIP projects in year one of the plan. These include Righetti Community Park, the installation of improved parking infrastructure, and a sealing project on Grand Avenue. A summary table of all completed and ongoing construction projects through the third quarter, along with updates on legacy projects, is included below. Page 52 of 555 23 Oracle Account Number Project Total Budget Estimated Construction Completion Date Additional Comments 2000049 842 & 919 Palm Parking Structure Repairs $ 2,538,989.00 Completed 2000126 Water Treatment Plant Generator Improvement Project at Facility 98 $ 3,527,523.00 Completed 2000188 Mitchell Park Revitalization $ 471,253.00 Completed 2000525A Parking Equiptment at Gate Entry (842 Palm) $ 312,000.00 Completed 2000578 Johnson Waterline $ 5,204,444.00 Completed 2000615 2024 Sealing Project $ 3,000,000.00 Completed 2001050 Tank Farm Lift Station Discharge Pipe Replacement Phase 2 $ 223,678.00 Completed 2001065 2023 Arterials $ 9,823,766.00 Completed 2001069 Righetti Hillside Emergency Repair $ 1,540,000.00 Completed 2091368 Reservoir 2 Cover Replacement $ 2,617,247.00 Completed 2091683 North Broad Park $ 1,533,939.00 Completed 2000031-08.01 Damon Garcia Sports Field Complex Parking Lot Maintenance $ 130,000.00 Completed 2000031-08.05 Johnson Park Parking Lot Maintenance $ 50,000.00 Completed 2000032-04 Railroad Safety Trail from Cal Poly to Taft Street $ 130,775.00 Completed 2000036-04 North Chorro Greenway Underbelly Lighting $ 50,000.00 Completed 2000036-05 North Chorro Greenway Underbelly Painting $ 60,000.00 Completed 2000075-06 Fire Station 4 Exterior Painting $ 55,000.00 Completed 2000075-07 Parking HVAC Replacement $ 260,000.00 Completed 2000075-9.01 Corporation Yard Fuel Island and Wash Station Rehabilitation $ 827,556.00 Completed 2001001-14 Higuera St Crack Sealing $ 109,072.00 Completed 2001010-01 Cheng Park Revitalization $ 807,786.00 Completed 2090742-10 Smith Augusta CMP Emergency Repair $ 850,000.00 Completed 2001068 Laguna Lake Dog Park $ 1,600,000.00 Q4 FY 24-25 Final Punchlist 2000034-03 Wash Water Tank #1 $ 753,807.00 Q4 FY 24-25 Final Punchlist 2001001-02 Palm Street Sidewalk Replacement $ 176,205.00 Q4 FY 24-25 2000545 California Waterline Replacement $ 1,550,505.00 Q1 FY 25-26 Construction Ongoing 2000561 Morro and Mill Sewer Replacement $ 2,800,000.00 Q1 FY 25-26 Construction Starting in Q4 FY24-25 2091219 Wastewater Resource Recovery Facility Upgrade $ 143,376,754.12 Q1 FY 25-26 Construction Ongoing 2000075-13.01 Jack House Roof and Windows $ 499,554.00 Q1 FY 25-26 Construction Ongoing 2000539-02 Sierra Way Waterline Replacement $ 2,766,449.00 Q1 FY 25-26 Construction Ongoing 2000096 Sewer-main Replacement: Foothill and Santa Rosa CalTrans $ 350,000.00 Q2 FY 25-26 Construction Starting in Q1 FY25-26 2001066B 1166 Higuera Parking Lot $ 428,183.00 Q2 FY 25-26 Construction Starting in Q4 FY24-25 2090649 Mid-Higuera Bypass $ 11,550,000.00 Q2 FY 25-26 Construction Ongoing 2091439 Mission Plaza Enhancements $ 3,729,574.00 Q2 FY 25-26 Construction Ongoing 2000114-02 City Hall's Finance/IT Remodel $ 1,337,705.00 Q2 FY 25-26 Construction Starting in Q4 FY24-25 2000574-01 Downtown Multi-Space Pay Station Installation $ 1,400,000.00 Q2 FY 25-26 Construction Starting in Q1 FY25-26 2000577-04 1106 Walnut TI $ 2,000,000.00 Q2 FY 25-26 Construction Starting in Q1 FY25-26 2000615-01 Grand Ave Sealing Project $ 429,000.00 Q2 FY 25-26 Construction Starting in Q1 FY25-26 2091506-02 Bob Jones Trail Groundwater Well Drilling (Packet 2)Q2 FY 25-26 Construction Starting in Q4 FY24-25 2000117 Cultural Arts District Parking Structure $ 47,000,000.00 Q3 FY 25-26 Construction Ongoing 2000054-01 Righetti Community Park $ 13,668,912.00 Q1 FY 26-27 Construction Starting in Q1 FY25-26 Completed & Ongoing Construction Capital Projects (January 2025-March 2025) Page 53 of 555 24 Oracle Account Number Project TOTAL ESTIMATED PROJECT COST (Construction Phase) Estimated Construction Start Date Additional Comments 2091252 Prado Road Bridge and Road Widening $28,210,000 Q2 FY 27-28 Working on regulatory permits and 90% constuction documents. 2091503 California and Taft Roundabout $4,000,000 Q2 FY 25-26 Right of way acquisition in progress and finalizing design documents. 2091613 Prado Road Interchange $124,000,000 Q2 FY 29-30 Value Analysis phase underway Status of Major and Legacy Projects in Design Page 54 of 555 25 Major City Goals Update Two Major City Goal tasks had an original completion date in the third quarter: Climate Action, Open Space, & Sustainable Transportation | Preserve and Enhance Convenient and Equitable Alternative and Sustainable Transportation Options | Strategic Approach 4.3a | Active Transportation Plan (ATP) Tier 1 Network – Higuera Complete Streets Project Responsible Departments: Public Works Original Completion Date: FY 2024-25 Q3 | Updated Completion Date: FY 2026-27 Q1 Status Update: This project has been delayed to allow for further feasibility analysis and design refinement based on community input requests to explore additional improvements on the Madonna Road Overpass and to refine traffic calming strategies in the Meadow Park Neighborhood. The project is on track to advertise by Q2 FY 2025-26, with completion anticipated by Q1 FY 2026-27. Climate Action, Open Space, & Sustainable Transportation | Preserve and Enhance Convenient and Equitable Alternative and Sustainable Transportation Options | Strategic Approach 4.3b | Active Transportation Plan (ATP) Tier 1 Network – South / King Crossing Responsible Departments: Public Works Original Completion Date: FY 2024-25 Q3 | Updated Completion Date: FY 2025-26 Q4 Status Update: This project has been delayed due to staffing vacancies in the Transportation Planning-Engineering Division and the need to revise curb ramp designs due to changes in accessibility design standards. The project is on track to advertise for construction FY 2025-26 Q1, with completion Q4 2025-26. Page 55 of 555 Page 56 of 555