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Home My WebLink AboutItem 6a - Fiscal Year 2024-25 Year End Budget Report Item 6a Department: Finance Cost Center: 2002 For Agenda of: 11/4/2025 Placement: Business Estimated Time: 90 Minutes FROM: Emily Jackson, Finance Director Prepared By: Riley Kuhn, Principal Budget Analyst SUBJECT: FISCAL YEAR 2024-25 YEAR END BUDGET REPORT RECOMMENDATION Receive and file the FY 2024-25 Year End Budget Report. POLICY CONTEXT The City’s Budget Policies require that the City Council review the City’s budget and financial condition through periodic reports. This year end report satisfies the requirement for the fourth of four quarterly budget updates to Council under Financial Management Manual Section 560. DISCUSSION Background The Fiscal Year 2024-25 Year End Budget Report (Attachment A), Major City Goal Summary (Attachment B), and Federal Funding Summary (Attachment C) are attached to this Council Agenda Report. A brief summary of each attachment includes: Attachment A: FY 2024-25 Year End Budget Report. This report is based on unaudited financial information that is presented to Council as a good faith effort to timel y communicate year-end results. Because the audit is ongoing, these results are highly preliminary and subject to change. The General Fund realized savings of $5.4M from its operating expenditures budget, primarily driven by staffing savings from vacancies. Revenue came in $1.0M below budget driven by under-realization of reimbursement revenue from Winter 2023 storms. While certain individual line items including sales tax and development fees also underperformed budget, all major categories including tax revenue and user fees exceeded budget. All other funds finished the year in good standing and within their operating budget appropriations. Page 91 of 349 Item 6a Attachment B: Major City Goals Summary. This attachment provides an update on the status of all Major City Goal tasks within the 2023-25 Financial Plan. Of the 145 tasks expected to be completed during the Financial Plan, 129 or 89% were either completed or ongoing. The report includes a brief summary of how each task was completed, or a longer description of the reason for any delay. Attachment C: Federal Funding Summary. This report was prepared in response to the shutdown of the Federal Government on October 1, 2025 and details the City’s exposure to federal funding. Previous Council or Advisory Body Action The FY 2024-25 budget was adopted by Council on June 4th, 2024. Mid-year changes were approved by Council on February 18, 2025. The Revenue Enhancement Oversight Commission has concurred with all budgeted uses of Local Revenue Measure funds. Public Engagement Public comment on this item can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting. The FY 2024-25 Year End Budget Report will also be posted to the City’s website for public review. CONCURRENCE All departments were involved in the preparation of the year -end budget report. Department Heads and Fiscal Officers were given ample time to review their results and collaborate with the Finance Department to complete their sections and review the report as a whole. ENVIRONMENTAL REVIEW The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report, because this action does not constitute a (Project” under CEQA Guidelines Section. 15378. FISCAL IMPACT Budgeted: N/A Budget Year: 2024-25 Funding Identified: N/A Page 92 of 349 Item 6a Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $0 $0 $0 $0 State Federal Fees Other: Total $0 $0 $0 $0 This budget report provides important information on current revenue and expenditures trends to keep the Council and community informed about the City’s financial standing and program efforts. There is no fiscal impact associated with the recommendation to receive and file the budget report. ALTERNATIVES The City Council could choose to make appropriations of unassigned fund balance. As noted in the report, the FY 2024-25 annual audit is still underway and the information included in this report (including the amount of unassigned fund balance available) is preliminary and subject to change. Should Council pursue this option, staff will make a good faith effort to estimate fund balance available prior to the completion of the audit, however, any appropriation in excess of actual fund balance available would reduce operating reserves below policy levels. ATTACHMENTS A - Fiscal Year 2024-25 Year End Budget Report B - Major City Goals Summary C - Federal Funding Summary Page 93 of 349 Page 94 of 349 Fourth Quarter Financial Report (Year-End) Fiscal Year 2024-25 Introduction The fourth quarter (Year-End Report) provides an overview of the City’s financial position and results as of and for the year ended June 30, 2025. This report includes the General Fund, the Special Revenue Funds, and the City’s four enterprise funds. These results are shared on a preliminary basis in the interest of transparency. All figures are subject to change until the audit is complete and the FY 2024-25 Annual Comprehensive Financial Report is published in late 2025. Table of contents General Fund Overview….…………………………………………………………………………..2 General Fund Expenditures ………………………………………………………………………..4 General Fund Revenue ……………………………………………………………………………….5 Storm Update……………………………………………………………………………………………. 9 Department Summaries and Updates…………………………………………………….…12 Capital Improvement Program Update……………………………………………………. 71 Page 95 of 349 General Fund Overview The General Fund finished the year with operating expenditures $5.4M or 5% favorable to budget driven largely by staffing vacancies. The remainder of the savings came from Contract Services and Other Operating Expenditures. The City Manager activated the Fiscal Health Contingency Plan in April 2025 in order to address economic uncertainty and an identified future budget deficit. Due to its activation late in the fiscal year, the FHCP did not contribute significantly toward the expenditure savings at year end, but did help to preserve some flexibility to address the forecasted deficit in future years. Total revenue finished $1.0M below budget driven by lower sales tax receipts, a decline in development fee revenue, and delays in reimbursement for Winter 2023 storms. Of the $8.7M budgeted for storm reimbursement, just $0.9M was received. While some individual line items underperformed, the broader categories of tax revenue, user fees, and general government revenue all exceeded budget. General Fund Summary Unfavorable Revenue Variance ($1,026,950) Operating Budget Savings 5,431,097 Net variance to budget $4,404,147 As shown in the table below, this net favorable variance of $4.4M represents a narrowing of the gap between budget and actuals relative to prior years. In other words, Fiscal Year 2024-25 ended with less year-end savings than prior years. The variance shown above represents the difference between budgeted and actual revenue and expenditures. This is not the same as the fund balance available for appropriation at year-end, which is $10.9M $11.6M $10.0M $8.9M $4.4M ($5M) $0M $5M $10M $15M FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Year-end Variance Trends Revenue Expenditures Page 96 of 349 based on the long-term forecast for the General Fund and includes certain unbudgeted assumptions including salary savings due to vacancies and changes in reserved, committed, and assigned fund balances. In order to present these preliminary results on a timely basis, this report was drafted concurrently with the annual audit and as a result, all numbers presented here are subject to change. The table below represents a preliminary estimate of the fund balance available and will be updated with audited results which will be used as the basis for Staff’s appropriation recommendations as a part of the FY 2025-26 Second Quarter Budget Report in February 2026. Fund Balance (in millions) Beginning Balance $43.1 +Revenue 126.7 -Expenditures 122.4 Ending Balance 47.4 -Committed & Assigned 28.7 -Reserved 14.6 Unassigned Fund Balance $4.1 Assigned fund balance includes $2.0M to fund the annual Additional Discretionary Payment (ADP) to CalPERS. Based on Council Guidance from development of the 2025-27 Financial Plan, the recommended ADP will be inflated in line with staffing costs and is expected to be approximately $2.9M. This recommendation to appropriate approximately $0.9M from the unassigned fund balance to increase the ADP to approximately $2.9M, and other appropriation recommendations, will be made as part of the FY 2025-26 Second Quarter Budget Report. Staff recommendations will be consistent with Section 8 of the City’s Budget Policies in the 2025-27 Financial Plan, which calls for prioritization of additional discretionary payments to CalPERS, infrastructure investments, and addressing emerging health and safety needs of the community. The City’s policy related to budget carryover for operating programs specifies that operating program appropriations not spent during the first year of a Financial Plan may be carried over for specific purposes, to the second year. As FY 2024-25 was the second year of the 2023-25 Financial Plan, no budget carryover was approved by the City Manager. A detailed analysis of expenditures and revenue follows, and additional information can be found in each department’s writeup. Page 97 of 349 General Fund Expenditures The General Fund finished the year with roughly 5% of its operating budget unspent, with savings in Staffing (4%), Contract Services (15%) and Other Operating Expenditures (8%). These results are in line with historical trends and were driven in part by deliberate reductions in spending in response to changes in revenue trends. General Fund Expenditures by Type Unspent budgets were primarily driven by staffing vacancies. There is a difference in methodology between budgets, which departments are accountable to, and the Long-Term Forecast for the General Fund, which is used to determine if the budget is balanced. The General Fund budget assumes 100% staffing for all positions with no vacancies, and the long-term forecast assumes 4% or $2.5M in staffing savings for vacancies. Net of assumed vacancy, the Fund realized $0.6M in true savings, detailed in the table below. Contract Services contributed an additional $1.7M in savings, primarily from the Community Development Department which intentionally reduced spending in response to slowing development activity and collection of associated user fee revenues. Other Operating Expenditures were $0.7M below budget with contributions from all departments, the largest of which came from Public Works due to favorable weather conditions reducing the cost of water and sewer services for the City’s parks. `FY 2023-24 FY 2024-25 FY 2025-26 Actual Budget Actual Funds Available % Budget Staffing 68,748,977$ 78,514,398$ 75,489,526$ 3,024,872$ 4% 78,804,551$ Contract Services 10,721,258 11,529,330 9,839,883 1,689,448 15% 11,995,946 Other Operating Expenditures 7,674,086 8,971,435 8,254,657 716,778 8% 9,158,906 Total 87,144,321$ 99,015,163$ 93,584,065$ 5,431,097$ 5% 99,959,403$ Staffing Savings Total Savings 3,024,872$ (Vacancy Assumption) (2,460,959) Net Savings 563,912$ Page 98 of 349 General Fund Expenditures by Department All departments finished the year under budget. For detailed analysis and commentary on individual departments’ results, please refer to the ‘Department Summaries and Updates’ section. General Fund Revenue The table below provides an overview of actual General Fund revenue compared to budget for the last fiscal year, prior year actuals, and current year budgets. FY 2023-24 FY 2024-25 FY 2025-26 Actual Budget Actual Funds Available % Budget Admin & IT 10,767,663 11,591,856 10,859,649 732,208 6% 11,752,023 City Attorney 1,472,411 1,758,600 1,651,262 107,337 6% 1,863,615 CDD 7,157,271 9,328,340 7,862,336 1,466,003 16% 9,059,766 CSG Admin 829,900 688,761 554,193 134,569 20% 614,367 Finance 2,275,677 2,785,589 2,681,624 103,965 4% 2,850,096 Fire 15,960,639 18,950,508 18,785,025 165,483 1% 18,108,272 Human Resources 2,179,463 2,395,349 2,080,416 314,933 13% 2,061,730 Non-Departmental 403,850 1,097,273 349,186 748,087 68% 2,399,772 Parks & Recreation 5,414,249 6,183,784 5,997,819 185,965 3% 6,231,512 Police 23,233,179 24,787,837 24,657,118 130,719 1% 25,600,253 Public Works 17,038,967 19,041,802 17,707,935 1,333,867 7% 19,022,753 Utilities 411,052 405,464 397,502 7,962 2% 395,243 Total 87,144,321$ 99,015,163$ 93,584,065$ 5,431,098$ 5% 99,959,403$ FY 2023-24 FY 2024-25 FY 2025-26 General Fund Actual Budget Actual Variance % Budget Tax & Franchise Revenue Sales Tax 53,404,212$ 56,383,599$ 54,357,111$ (2,026,488)$ -4% 55,470,441$ Property Tax 23,723,431 23,446,385 24,923,847 1,477,461 6% 25,944,966 Transient Occupancy Tax 11,063,012 10,586,256 11,417,888 831,632 8% 11,099,705 Utility User Tax 6,301,505 6,622,639 7,501,436 878,797 13% 6,605,306 Business Tax 2,942,923 3,317,338 3,138,271 (179,067) -5% 3,230,170 Franchise Fees 2,366,286 2,091,800 2,622,351 530,551 25% 2,242,429 Cannabis Tax 1,116,495 1,100,000 814,502 (285,498) -26% 1,000,000 Subtotal 100,917,864 103,548,018 104,775,406 1,227,388 1% 105,593,017 User Fees Development Review 6,276,972 6,585,331 5,697,332 (887,999) -13% 4,606,812 Parks & Recreation 2,415,605 2,082,847 2,643,907 561,060 27% 2,280,283 Fire 2,267,237 2,882,464 3,331,998 449,534 16% 1,759,183 Police 1,022,145 844,790 834,584 (10,206) -1% 690,200 Business Licenses 703,544 700,600 792,548 91,948 13% 632,470 Subtotal 12,685,503 13,096,032 13,300,370 204,338 2% 9,968,947 General Government 6,235,698 2,326,768 7,691,002 5,364,234 231% 1,669,077 2023 Storm Reimbursement 8,732,000 909,090 (7,822,910) -90% - Total Revenue 119,839,064$ 127,702,817$ 126,675,868$ (1,026,950)$ -1% 117,231,041$ Page 99 of 349 Sales and Use Tax Revenue (Including Local Revenue Measure): This cyclical revenue stream was expected to rebound after several years of tepid growth. Shortly after supplemental budget adoption for FY 2024-25, these expectations were revised downwards and staff signaled in the Q1 Budget Report that sales tax revenue was expected to underperform. In February 2025, the City’s sales tax consultants projected that this line item would miss budget by $2.7M. While the FY 2024-25 result is lower than budget, it is also not as low as previously feared, and, at +1.7% higher than the prior year, indicates that the local economy is still growing on a nominal basis. This compares favorably to the broader Central Coast which grew by +1.5% year over year and the state which contracted by -0.1%. The table below visualizes recent sales tax trends and the FY 2025-26 budget: This highly cyclical revenue stream remains under pressure from macroeconomic conditions and even the modest growth forecasted in the 2025-27 Financial Plan may prove elusive. The FY 2025-26 budget assumes year over year growth of +2.1%, well below the inflationary rate and in line with recent trends. However, the City’s consultants have advised that consumer discretionary spending is under pressure and the City’s sales tax revenue may underperform expectations by up to $1.3M in FY 2025-26 which would indicate year over year decline of $0.2M or -0.3%. Property Tax: This revenue stream is relatively stable year over year due to Prop 13 which limits assessment increases on existing homes to 2% each year. In FY 2024-25, this revenue stream grew at +5.1% year over year driven by existing homes with artificially low assessed values being sold and reassessed at market value. Home prices in San Luis Obispo continued to increase during the fiscal year despite persistently elevated mortgage rates. This revenue stream is typically forecasted based on conservative estimates from the County Assessor’s Office, leading to large favorable variances at year-end. In the 2025-27 Financial Plan, staff made modest $51.6M $52.9M $53.4M $54.4M $55.5M $0.0M $10.0M $20.0M $30.0M $40.0M $50.0M $60.0M FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26B Sales Tax Trend Page 100 of 349 adjustments to this budget in an effort to more accurately forecast revenue and expect a smaller favorable variance from a FY 2025-26 budget that assumes +4.1% year over year growth. Transient Occupancy Tax (TOT): TOT exceeded budget by $0.8M and delivered +3.2% year-over-year growth. Staff attribute this growth to new hotel properties that added supply to the market that were met with strong consumer demand. Key performance indicators such as Occupancy and Revenue per Available Room saw modest increases, and Average Daily Rates remained essentially flat. TOT has been conservatively forecasted for FY 2025-26. Utility User Tax (UUT): UUT revenue exceeded budget by $0.9M and increased by 19% year-over-year. This revenue stream is based on both market price and consumer utilization of utilities and, as such, can be highly volatile. This revenue stream is once again conservatively forecasted for FY 2025-26. Business Tax: This revenue stream finished under budget due to acquisitions of taxpaying businesses by tax exempt entities. Current budgets have been adjusted downwards to reflect recent collections trends and budget attainment at this lower level is expected in FY 2025-26. Cannabis Tax: Cannabis Tax revenue missed budget by $0.3M or 26%. This revenue stream has declined for two years in a row after reaching its peak in FY 2022-23. The legal cannabis industry in California has struggled in recent years, prompting the State to pass AB 564 to reduce excise taxes. Franchise Fees: Similar to UUT, Franchise Fees are assessed against utilities companies and exceeded an intentionally conservative budget by $0.5M or 25%. General Government: This line item includes all of the City’s non-departmental, non-tax revenues including investment income, rent, grants, and other miscellaneous revenue. The most notable variance in general government revenue was investment income which exceeded budget by $4.7M. The City generally invests its cash in safe and highly liquid short duration credit securities which have benefited from exceptionally high yields in recent years. The table below details the trend in investment income received over the last five years, broken down by Cash Income received from investments and Fair Market Value (FMV) adjustments which represent the fluctuations in value that fixed income investments experience when market interest rates change. Assuming the City does not sell its investments prior to maturity, FMV Adjustments are non-cash in nature, but are treated as a reduction to revenue and fund balance for accounting purposes. Page 101 of 349 In Fiscal Year 2020-21, investment income was minimal as monetary policy actions by the Federal Reserve held interest rates near zero to stimulate the economy after the COVID pandemic. In FY 2021-22, interest rates rose in response to rapid inflation. This led to an increase in cash income received as newly purchased investments paid higher rates of interest, however, the market value of the City’s portfolio decreased by $1.7M as its average interest rate was well below the market rate leading to a net loss of $1.0M in FY 2021-22. Market interest rates fell in FY 2023-24 as the Federal Reserve was widely expected to cut rates to avoid sending the economy into recession and, in FY 2024-25 the Federal Reserve did reduce its benchmark rate and the market rate decreased further. As interest rates decreased, the average interest rate of the City’s portfolio became higher than the market rate and positive FMV adjustments were recorded. This trend accelerated in FY 2024-25. Throughout this period the City has maintained a conservative forecast for investment income of approximately $0.5M annually. Market interest rates have been volatile in recent years. Should rates increase in the future, the City could realize negative investment income once again. If interest rates continue to fall as expected, investment income will exceed a conservative FY 2025-26 budget but this variance is expected to shrink as the City reinvests proceeds from maturing securities at lower yields. User Fees: This broad category of fees for service finished in line with expectations, exceeding budget by just $0.2M or 2%. Development Review revenue underperformed by $0.9M driven by a slowdown in building activity locally that mirrors national trends. This was offset by outperformance from Parks & Recreation and Fire which each exceeded their projections by approximately $0.5M. Detailed writeups for the individual fees can be found within the writeup of the relevant department. Page 102 of 349 2023 Winter Storms 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 Budget Supplement. 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. At the Federal level, there is increasing conversation about the current administration’s plans to shift the burden of disaster relief and recovery onto states. While some communities are already experiencing this, it is not currently expected that this shift will put the City’s projects in danger, as the 2023 Winter Storms occurred nearly three years ago. To address some of the delays in obtaining reimbursement, City staff met with Congressman Carbajal’s Office in May 2025 to seek assistance in navigating FEMA’s processes. Since that time, the City has been able to make some good progress on getting projects obligated for reimbursement. As of the writing of this report, the City has received just under $1 million in reimbursement, with another $1 million obligated. The table below provides a high-level summary of the status of the project costs that have been submitted to FEMA: Page 103 of 349 Storm Project Reimbursement Status Status Amount # of Projects Notes Obligated for reimbursement $1.94M 19 The City has received $962,213 of this amount. Pending final FEMA review $6.74M 5 Includes San Luis Drive project ($5.36M) and Citywide Debris Removal project ($1.34M), which both require Congressional review prior to formal obligation. FEMA review ongoing $8.86M 15 Three of these projects including two at Stenner Creek and one at Old Garden Creek total $4.75M are planned future projects and may be canceled if FEMA does not approve reimbursement. Determined ineligible $18.01M 10 Staff have formally appealed three of the projects determined to be ineligible (a total of $7.03M of the total amount determined ineligible). Staff are sending all appeals to Congressman Carbajal’s office for awareness and follow-up with FEMA. Despite the current Federal shutdown, staff continues to receive and respond to requests for information (RFIs) from FEMA related to the City’s projects. While FEMA has not provided a formal communication to the City about the impact of the Federal shutdown, it is expected that further reimbursement will be delayed due to a lack of funding in the Disaster Relief Fund. In addition, two of the City’s most costly projects (the San Luis Drive project and the Citywide Debris Removal project) are awaiting Congressional review prior to formal obligation, due to the total cost of each being in excess of $1 million. Congressional review of these projects will be delayed due to Congress not being in session. Based upon staff delivery capacity and FEMA reimbursement timeframes, staff continues to work on the highest priority storm damage projects. The projects that are shown in the table below represent the highest priority projects for delivery at this time based upon the need to mitigate previously completed projects, protect existing infrastructure, and/or represent projects that must be completed. The Elks Lane Projects are included in this list due to an existing easement agreement. Page 104 of 349 Storm Projects Page 105 of 349 Administration & IT Administration & IT A Year in Review The Office of the City Manager conƟnued to provide informaƟon and recommendaƟons to the City ama Council, implemented Council policies and programs and managed the day-to-day operaƟons of the City. The City CommunicaƟons Program worked to support City departments and the City Council in communicaƟng effecƟvely with the community during FY 2024-25. The Economic Development and Tourism Program was a major contributor to The Economic Resiliency, Cultural Vitality & Fiscal Sustainability Major City Goal. The team piloted the Business Navigator program to provide support to people looking to start or expand businesses and supported cultural vitality and placemaking. The Office of Sustainability and Natural Resources team worked in close collaboraƟon with Ranger Service to implement the Righeƫ Hill Open Space ConservaƟon Plan (2023). The Office of Diversity, Equity, and Inclusion office completed the Community Belonging Series which provided opportuniƟes throughout the city to hear from diverse speakers on topics of access and inclusion. Network Services Staff conƟnued to advance the City’s Broadband Plan, securing $4.8 million in Last Mile FFA Grant Funding, and the InformaƟon Services team, comprised of Geographic InformaƟon Systems (GIS) and enterprise applicaƟon support, completed a major project to streamline the way overƟme calculaƟon is handled in the Oracle system, simplifying the process to complete the City’s payroll, in collaboraƟon with Finance and Human Resources staff. The AdministraƟon and IT Department ended the year with overall savings of 6% ($732,208). The majority of savings ($481,161) was in salaries and beneﬁts due to the number vacancies and posiƟons held vacant during the year. Other savings included contract services at $154,030 and other operaƟng expenditures at $97,016. Variance Analysis Staffing: The AdministraƟon and IT Department ended the year with 7% ($481,161) in salary savings represenƟng the majority of departmental savings. The savings are aƩributed to various vacancies throughout the year including the City Manager, ExecuƟve AdministraƟve Assistant, DEI Manager and AdministraƟve Specialist, Economic Development & Tourism Manager, InformaƟon Services System ApplicaƟon Specialists supporƟng Oracle and GIS applicaƟons, and Deputy City Clerk. Several of these posiƟons were also held vacant to provide opƟons for future budget balancing work. To ensure conƟnuity on key projects and services, $85,000 in salary savings was uƟlized for contract support for the City’s Oracle system. AddiƟonal savings are Ɵed to changes in beneﬁt elecƟons. Contract Services: The contract services budget supported delivering on the objecƟves and commitments outlined in the Major City Goals and work programs. This included the Buy Local Bonus and Restaurant FY 2023-24 FY 2024-25 FY 2025-26 Admin & IT Actual Budget Actual Funds Available % Budget Staffing 6,038,015$ 6,839,367$ 6,358,206$ 481,161$ 7% 6,591,776$ Contract Services 3,682,510 3,672,746 3,518,715 154,030 4% 4,000,403 Other Operating Expenditures 1,047,253 1,079,743 982,728 97,016 9% 1,159,845 Total 10,767,778$ 11,591,856$ 10,859,649$ 732,208$ 6% 11,752,023$ Page 106 of 349 Administration & IT programs, Childcare grants, Downtown acƟvaƟons, DEI High Impact grants, Human Services grants, IT infrastructure maintenance and more. Contract services were under budget by 4% ($154,030). There was $32,000 in savings due to some program delays resulƟng from the vacancy in the Economic Development and Tourism Manager posiƟon. The Office of Sustainability and Natural Resources had savings of approximately $22,800; this was due to the year-end close out of the Buildings Upgrade Prize funds ($10,300) and purchase orders with vendors and community partners coming in less than anƟcipated ($12,500). Savings from the City Clerk’s Office of $20,000 were due to delays in regular maintenance and updates to the Council Hearing Room and Chambers audio/video equipment. There was $15,000 in savings in the Office of DEI, which is budgeted annually to support the biannual Community Academy or another community engagement program in alternaƟng years. When the program was made ongoing in 2023, the intent was to alternate the Community Academy with a new “Candidate EducaƟon Offering” developed as part of the City’s 2024 CVRA seƩlement. Due to elecƟon Ɵming, the ﬁrst Candidate EducaƟon Offering will occur in November 2025 (FY 2025-26). Beginning in spring 2026, it will alternate with the Community Academy in future years. Other OperaƟng Expenditures: The majority of savings in other operaƟng expenditures was in professional development and training ($48,000). This was the result of the number of posiƟons that became vacant, the number of posiƟons held vacant and implementaƟon of the Travel Chill in April 2025. The majority of professional development occurs during the last quarter of the ﬁscal year coinciding with the acƟvaƟon of the travel chill resulƟng in a larger amount of savings. The compleƟon of InformaƟon Technology Capital Improvement Projects, including replacement of Uninterrupted Power Supply (UPS), ECC Computers, and CAD Servers and Storage reduced the need for annual maintenance of those systems and the corresponding operaƟng expenditures for a one-Ɵme savings of approximately $25,000. Page 107 of 349 Administration & IT Performance Measures AdministraƟon & IT Performance Measures Objective Measure 2024-25 Target 2024-25 Actual Provides City-wide communications to the community. Strategic Goal: Citywide Communications Open City Hall Participant Satisfaction Rating 92% 92% # of Pageviews for City News Pages 150,000 54,829 # of news e-mail subscribers 6,000 11,375 Provides reliable IT resources to the organization and community. Strategic Goal: Information Technology Maintain City Network Reliability Uptime Status 99.9% 99.9% Data backed up in Terabytes 173 147 Number of GIS layers maintained 920 920 Economic Stability Strategic Goal: Economic Recovery and Stability Contacts with businesses regarding starting, expanding, and/or staying in the city 75 128 One-time funds used for direct aid to local businesses and non-profits $175,000 $170,000 Supports our commitment to sustainability and provides open space resources to the community. Strategic Goal: Climate Action, Open Space, and Sustainable Transportation # of Green Team Meetings 10 10 # of Open Space Conservation Plans that will guide the long-term protection and stewardship of natural resource values while guiding appropriate use 1 0 Strengthens the City’s commitment to advancing Diversity Equity and Inclusion Strategic Goal: DEI # of City-wide DEI Trainings Offered 6 1 # of DEI Newsletters for Staff 6 6 Funds for High-Impact DEI Grants Awarded $150,000 $150,000 # of Pageviews for City News Pages Staff discovered in FY 2024-25 that Google changed how they track this metric resulƟng in fewer views than expected. According to reports, Google now automaƟcally ﬁlters out bot traffic, which provides the city with a much more accurate count of human pageviews, but also signiﬁcantly reduces the total number of pageviews. During FY 2024-25, many other websites have reported a similar decline in pageviews. Staff will consider adjusƟng its targets or removing this metric altogether in the coming years due to inconsistent methods used by Google AnalyƟcs. Data backed up in Terabytes Staff deployed a new Body worn Camera plaƞorm for the Police Department, which stores data in the cloud rather than on servers hosted and maintained by the city. The new plaƞorm also handles backups for data. Due to this operaƟonal shiŌ, as well as the clean-up of aged records per the City’s Record RetenƟon Schedule, the city has reduced the total amount of data that it stores and backs up. Staff are Page 108 of 349 Administration & IT seeing an increase in digital evidence and general document storage that will likely increase this number in future years. One-Ɵme funds used for direct aid to local businesses and non-proﬁts This year, $125,000 was spent on the Buy Local Bonus program, $20,000 was spent on SLO Restaurant Month, and $25,000 for childcare expansion grants through CAPSLO. AddiƟonal funding to economic development partnerships and business support services includes $210,000 to Downtown SLO, $50,000 to REACH, $30,000 in annual services with the Cal Poly Center for InnovaƟon and Entrepreneurship (CIE), $2,500 to Score, and $2,500 to SoŌec which totals to $465,000 when considering support for economic development partners. # of Open Space ConservaƟon Plans Office of Sustainability & Natural Resources program staff did not complete a new open space conservaƟon plan document in FY 2024-25; rather, focus was on implementaƟon of the Righeƫ Hill Open Space ConservaƟon Plan that was adopted by City Council during FY 2023-24. See further discussion below. # of City-wide Trainings Offered The Office of DEI had reduced capacity to complete workshops this year due to vacancies in the AdministraƟve Specialist and DEI Manager roles. The Office of DEI was able to complete one internal workshop and eight Community Belonging Series events for the community. Staff anƟcipate being able to provide six City-wide workshops to staff in FY 2025-26. Accomplishments & Challenges Office of the City Manager: This year, staff completed the design and installaƟon of a Chinatown historic informaƟonal panel honoring the contribuƟons of the Chinese community and submiƩed more than 25 legislaƟve advocacy leƩers on behalf of the city. In collaboraƟon with Finance, Office of the City Manager staff coordinated the 2026 Community Forum, which achieved record aƩendance and informed development of the 2025–27 Financial Plan. Because the local news media market is small, one of the City’s communicaƟons strategies is providing informaƟon directly to community members through social media and e-noƟﬁcaƟons. During FY 2024-25, the City’s CommunicaƟons Team conƟnued to regularly share engaging and Ɵmely content with the community. The city also consolidated its mass email lists and consistently promoted e-noƟﬁcaƟons and social media pages to community members. As a result, the City’s Instagram account successfully reached more than 18,000 followers and the City’s e-mail list nearly doubled, reaching more than 11,000 subscribers this ﬁscal year. These channels of communicaƟon offer direct, personalized communicaƟon, offer wide reach and are cost-effecƟve. They also help the city build relaƟonships with community members and provide measurable results. Office of City Clerk: The City Clerk’s Office successfully transiƟoned all the Advisory Bodies into Escribe, providing the public with a single locaƟon to ﬁnd all City Council and Advisory Body Agenda Packets and videos. The office also supported a new Council Member and onboarded a new Deputy City Clerk. Page 109 of 349 Administration & IT Office of Economic Development & Tourism: The Economic Development program was a major contributor to the Economic Resiliency, Cultural Vitality & Fiscal Sustainability Major City Goal and implemented several tasks from the Economic Development Strategic Plan. The addiƟonal program funding allocated through the Major City Goal supported programs contributed to sense of place including the Downtown acƟvaƟons for the holidays, promoƟonal campaigns to drive business like the return of the Buy Local Bonus program and the new SLO Restaurant Month. Funding also supported grants to support the establishment or expansion of childcare businesses, acquisiƟon of data for the employment and economic scorecard and other smaller iniƟaƟves. FY 2024-25 was the second year of implementaƟon for the 5-year Economic Development Strategic Plan, and one highlight was the development and piloƟng of a formal business retenƟon and expansion (BRE) program called “SLO Grown Business Support.” As part of the program, the Economic Development Analyst serves as the “business navigator” to provide guidance and support to people looking to start or expand a business, with a focus on creaƟng and providing start-up checklists for the 17 most common business types. Mapping the permiƫng process for these 17 business types represented a signiﬁcant liŌ for this project. AddiƟonally, the Community PromoƟons program though the PromoƟonal CoordinaƟng CommiƩee (PCC), and tourism markeƟng through the Tourism Business Improvement District (TBID) conƟnued to drive signiﬁcant economic impact to SLO. Through the PCC, the city awarded $100,000 in grant funding to local non-proﬁt organizaƟons through the Cultural Arts & Community PromoƟons (CACP) grant program. AddiƟonally, the PCC also brought back the ARTober campaign honoring NaƟonal Arts & HumaniƟes month in October for the second year. Tourism in the City remained strong, resulƟng in $11.4 million in transient occupancy tax (TOT) revenue. This contributed to the General Fund and outperformed the budget by 7.9%. Tourism promoƟon conƟnued to be led by the City’s TBID through Visit San Luis Obispo. More details are in the TBID secƟon of this report. Challenges ahead for the Economic Development & Tourism program include macroeconomic factors and concerns regarding tariffs, inﬂaƟon, interest rates, and economic uncertainty that affect local businesses, industries, and workers. ConƟnuing to invest in supporƟng businesses and keeping our community a vibrant, safe, and clean place to live, work, invest, and visit will conƟnue to be a focus for the ED&T in the year ahead in partnership with local stakeholders and organizaƟons. Office of Sustainability and Natural Resources: Office of Sustainability & Natural Resources staff worked in close collaboraƟon with Ranger Service to implement the Righeƫ Hill Open Space ConservaƟon Plan (2023) with the installaƟon of new sustainable trail segments for both hiking and biking uses, as well as all standard open space ameniƟes including two informaƟonal and educaƟonal kiosks, trails signs, bike parking, muƩ-miƩs and trash service, and a viewing plaƞorm. This effort culminated with a ribbon-cuƫng ceremony with the City Council, staff, and numerous community members and community groups that took place in early summer 2025. The current federal regulatory and policy environment and cessaƟon of most federal funding, rebate, or incenƟve opportuniƟes introduces uncertainty as to achieving the City’s community and municipal climate goals. Staff look forward to a Study Session with the City Council in early 2026 to discuss the Climate AcƟon Plan update and opportuniƟes to navigate this challenge. Page 110 of 349 Administration & IT Office of Diversity, Equity, and Inclusion: The Office of Diversity, Equity, and Inclusion welcomed and successfully onboarded a new AdministraƟve Specialist and DEI Manager. The office is now fully staffed and advancing the tasks outlined in the DEI Strategic Plan and Major City Goal. This year, the office completed the Community Belonging Series which provided opportuniƟes throughout the city to hear from diverse speakers on topics of access and inclusion. The office also ﬁnalized the City’s Title VI Plan in partnership with Public Works, strengthening compliance and access. In addiƟon, staff secured two professional expert contracts to develop four DEI workshops for staff, expanding internal development and knowledge sharing. InformaƟon Technology: Staff advanced the City’s Broadband Plan, securing $4.8 million in Last Mile FFA Grant Funding from the California Public UƟliƟes Commission to support infrastructure buildout. Final plans are being reviewed to be brought to the City Council for approval to adverƟse for bids, and the project is on track to complete Phase 1 of the Broadband Plan by compleƟng the Last Mile FFA build by November 2026. The InformaƟon Services team, comprised of Geographic InformaƟon Systems (GIS) and enterprise applicaƟon support, have provided mapping and geospaƟal analysis for a number of criƟcal City projects, including the City’s St. FraƩy’s Day operaƟons, the Fire Hazard Severity Zone (FHSZ) update, and the City’s response to the Grand Jury report “Round & Round with Town & Gown.” The InformaƟon Services team also completed a major project to streamline the way overƟme calculaƟon is handled in the Oracle system, simplifying the process to complete the City’s payroll, in collaboraƟon with Finance and Human Resources staff. InformaƟon Technology staff will need to conƟnue to look for innovaƟve ways to support the City’s InformaƟon Technology needs, given current budget constraints. AddiƟonal broadband network expansion will be challenging as the City has relied on grant funding for this work, and future grant funds may be more difficult to obtain under the current Federal administraƟon’s approach to broadband grants. Page 111 of 349 Administration & IT Administration & IT - TBID A Year in Review Tourism in the city of San Luis Obispo stayed strong with a record-breaking $11.4 million in Transient Occupancy Tax (TOT) revenue collected, outperforming the budget by 7.9%. San Luis Obispo saw ﬁve $1 million revenue-collecƟon months in July, August, April, May and June. This year’s increase in revenue exceeded forecasts and San Luis Obispo also saw modest increases in key performance indicators, such as Occupancy and Revenue Per Available Room, while Average Daily Rate remained essenƟally ﬂat. This means that the increase in revenue is coming from hotels selling more rooms, indicaƟng that demand is strong, but also that compeƟƟon is high and that is keeping room rates ﬂat. Occupancy increased 2.9% compared to last ﬁscal year, with an average occupancy rate of 70%. This growth reﬂects a conƟnued recovery in overnight travel, with the average occupancy rate now approaching the pre-pandemic level of just below 71% seen in FY 2018-19. Variance Analysis Staffing – The program ended the year with 14% savings due to a temporary vacancy following the resignaƟon and hiring for the role of Economic Development and Tourism Manager. Other OperaƟng Expenditures – The 92% variance is mainly due to TBID not fully expending its undesignated funds ($191,162 remaining for the year, comprising 96% of the remaining funds for Other OperaƟng Expenditures). The program also had a small amount of savings in other tourism program expenses, primarily memberships/cerƟﬁcaƟons and publicaƟons and subscripƟons. The undesignated funding was intended to allow ﬂexibility for responding to changes in the market or the staffing plan, but it was not needed. In accordance with the City’s Municipal Code, 12.42.080 any funds remaining at the end of any TBID term may be used in subsequent years, therefore unspent funds from FY 2024-25 are added to the undesignated fund balance available to TBID, which is now more than $1.6 million. Accomplishments & Challenges The Average Daily Rate (ADR) in San Luis Obispo was $177, nearly ﬂat compared to the prior year, but sƟll $24 higher than the pre- pandemic year of FY 2018-19 for comparison. However, the current ADR is below the peak of $195 achieved in FY 2021-22. Another indicator used by the TBID to gauge impact is RevPAR, deﬁned as Revenue Per Available Room. In FY 2024-25 the annual average RevPAR was up 2.9% from the prior year at the rate of $125.31 on average. In spring 2025, the City received a report from Tourism Economics on the economic impact of tourism in the community which found that in 2024, San Luis Obispo welcomed approximately 1.5 million visitors, `FY 2023-24 FY 2024-25 FY 2025-26 TBID Actual Budget Actual Funds Available %Budget Staffing 260,092$ 280,579$ 241,390$ 39,189$ 14% 262,464$ Contract Services 1,869,690 1,917,153 1,871,886 45,266 2% 1,977,377 Other Operating Expenditures 20,130 216,624 16,266 200,358 92% 42,772 Transfers Out 43,611 44,914$ 44,914$ - 0% 44,399 Total 2,193,523$ 2,459,269$ 2,174,457$ 284,813$ 12% 2,327,012$ Page 112 of 349 Administration & IT including 1 million overnight visitors- an increase of 1% from 2023. In total, the direct visitor spending impact of $455 million generated a total economic impact of $648 million in the regional economy (including indirect and induced impacts) and sustained approximately 4,700 total jobs (including indirect and induced jobs). The Tourism Business Improvement District (TBID) known as ‘Visit San Luis Obispo’ (Visit SLO) conƟnued to lead tourism work on behalf of the City. In January 2025, the TBID Board adopted a 5-year Strategic Plan to provide a clear and uniﬁed framework for the Board’s prioriƟes and decision-making. The plan outlines the TBID’s key roles in stewarding the Visit San Luis Obispo brand, represenƟng its lodging partners and driving overnight visitaƟon through targeted markeƟng strategies, strategic partnerships and desƟnaƟon advocacy. In the end of FY 2024-25, Visit SLO marked a major milestone by evolving its core brand message with the development and launch of the SLO Life Coach campaign. This creaƟve plaƞorm builds on the success of the established brand line, “Live the SLO Life,” which has served as a powerful anchor for the desƟnaƟon’s messaging over the past few years. The SLO Life Coach campaign marked a signiﬁcant investment in creaƟve storytelling and brand ampliﬁcaƟon. It introduced a fresh, personiﬁed expression of the Visit San Luis Obispo brand—embodied by a charismaƟc, laidback and wiƩy character who shares “SLO Life Tips” with charm and a touch of bold energy. Performance metrics from the ﬁrst few months of the new campaign show that it is performing strongly. In addiƟon, Visit SLO conƟnued to drive midweek travel by transiƟoning its MidWeekend campaign previously driven by offseason promoƟons to an evergreen, “always-on” campaign. Visit SLO also conƟnued its strategic partnerships with Cal Poly, Kind Traveler, ECOSLO (in support of the Keys for Trees program), and the Gala Pride and Diversity Center. On the supply side, one contribuƟng factor is that in spring 2025 a dual-branded property opened in the San Luis Ranch Development that increased the number of available rooms in the city by 8%. AddiƟonal new hotels have opened in neighboring communiƟes, with more slated to open in the years to come, parƟcularly in North County, which will further increase supply and potenƟally keep room rates down. On the demand side, the travel industry is experiencing macroeconomic headwinds as travelers are adjusƟng their travel plans in response to economic uncertainty/inﬂaƟon and geopoliƟcal tensions. Travelers are looking to stay closer to home and are looking for value, parƟcularly those at lower income levels. With increased supply and indicators of potenƟally soŌening demand, Visit SLO’s strong performance in FY 2024-25 can be interpreted as a win. The TBID, however, conƟnues to remain vigilant and will conƟnue to guide Visit SLO’s growing success, driving overnight stays and increasing economic impact for the community. Page 113 of 349 CSG Administration Community Services Group AdministraƟon A Year in Review Community Services Group (CSG) AdministraƟon includes the Assistant City Manager, a half-Ɵme AdministraƟve Assistant, and the Financial Analyst for Infrastructure Finance, and provides oversight of the various CSG departments including Public Works, Community Development, UƟliƟes, and Parks & RecreaƟon. As part of the 2025-27 Financial Plan, CSG AdministraƟon was integrated as a program within the AdministraƟon & InformaƟon Technology Department. Since CSG AdministraƟon was budgeted as a department in the FY 2024-25 budget, it is presented on a standalone basis here. Variance Analysis Staffing savings were generated as a result of the former Assistant City Manager being promoted to the City Manager role, leaving the posiƟon vacant for three months. AŌer a successful recruitment, the posiƟon was ﬁlled and staffing savings are not expected to persist. Contract Services was overspent by $324 or 1% as a result of an invoice from the City’s user fee consultant to aƩend a City Council hearing. The user fee study was budgeted for and primarily occurred in FY 2023- 24, and this addiƟonal charge was not budgeted for. No ongoing variance is expected in this line item. Other OperaƟng Expenditures generated savings of $7,714 or 64% driven by vacancies which impacted the expenditure of non-staffing accounts. EducaƟon & Training, Trips & MeeƟngs, Employee RecogniƟon, and Office Supplies budgets were minimally uƟlized. Staff will evaluate the appropriate level of funding for this program and adjust as needed in future budgets. FY 2023-24 FY 2024-25 FY 2025-26 CSG Admin Actual Budget Actual Funds Available % Budget Staffing 692,323$ 637,968$ 510,789$ 127,179$ 20% 551,990$ Contract Services 127,900 38,794 39,118 (324) -1% 50,353 Other Operating Expenditures 181,838 12,000 4,286 7,714 64% 12,025 Total 1,002,060$ 688,761$ 554,193$ 134,569$ 20% 614,367$ Page 114 of 349 City Attorney City AƩorney A Year in Review During FY 2024-25, a staff member on extended leave of absence, a recurring posiƟon vacancy, and a limited number of supplemental hours worked generated a large amount of salary savings even aŌer using a substanƟal porƟon of the accumulated funds to hire a full-Ɵme contract Deputy City AƩorney. In a year of high impact staffing ﬂuctuaƟons, the department was sƟll able to support the pre-liƟgaƟon seƩlement of a California Voter Rights Act demand; assist with various personnel maƩers; resolve or tender several high-dollar, Ɵme-intensive claims and liƟgaƟon; support a signiﬁcant receivership acƟon; and advise on many other important issues, agreements, and development and CIP projects. Variance Analysis Staffing accounts were under budget due to the regular Assistant City AƩorney being out on family leave for six months of the ﬁscal year; the department’s second legal assistant posiƟon being vacant for a total of eight months following two different resignaƟons; and the supplemental Assistant City AƩorney working less than 600 hours when the posiƟon was budgeted for 1,248 annually. Knowing the regular Assistant City AƩorney would be out of office for the second half of the year, staff proposed and gained City Manager approval to hire a full-Ɵme contract Deputy City AƩorney. That contract employee started work at the beginning of November, but even aŌer covering eight months of their salary and beneﬁts, and in June moving $35,000 of salary savings to legal services to fund an outside counsel contract, the department’s Staffing budget ended the year 7% under budget. The variables that combined to create these savings are expected to be a one-Ɵme occurrence. The regular Assistant City AƩorney has returned from leave, and the second legal assistant posiƟon is currently ﬁlled with a qualiﬁed staff member predicted to be with the City long-term. Also, the Deputy City AƩorney contract term conƟnues through November 2026 and that contract is expected to be supported by any budget surplus that accumulates. Performance Measures Objective Measure 2024-25 Target 2024-25 Actual Efficient and Transparent Administrative Appeals Program Administrative Citation Appeals Received by the City 120 117 Appeals closed without need of a hearing 25 54 City assisted corrections to defective appeals to allow access to hearing 15 30 City facilitated hearings on the record without need for personal appearance by Appellant 30 37 # of hearing days scheduled 18 19 FY 2023-24 FY 2024-25 FY 2025-26 City Attorney Actual Budget Actual Funds Available %Budget Staffing 1,232,227$ 1,451,228$ 1,351,385$ 99,843$ 7% 1,518,977$ Contract Services 204,219 272,521 265,465 7,056 3% 295,153 Other Operating Expenditures 35,965 34,851 34,412 438 1% 49,485 Total 1,472,411$ 1,758,600$ 1,651,262$ 107,337$ 6% 1,863,615$ Page 115 of 349 City Attorney Legal Training & Compliance # of Council, Staff, and Advisory Body legal trainings, legal updates, and compliance advisory sessions 12 18 Municipal Claims, Litigation & Prosecution Management Percentage of Claims Resulting in Litigation <5% 7.8% Liability Claims Against the City Reviewed/Managed 70 77 Number of multi-count complaints filed for misdemeanor municipal code violations 45 39 A higher-than-expected number of appeals were closed without need of a hearing due to the large number of potenƟal appellants who failed to correct a deﬁciency in their appeal aŌer being noƟﬁed by staff, along with another dozen appeals for which the underlying citaƟon was voided by the City. The similarly higher than expected rate of City assisted correcƟons coincided with the implementaƟon of a fee for hearing officer review. In general, in FY 2024-25 there were more rejecƟons due to the change in process (adding the appeal fee) with many people choosing to pay their fee and proceed to hearing. Six claims received in FY 2024-25 have gone to liƟgaƟon, which drove a higher-than-expected liƟgaƟon percentage. One of the six claims was a $5,000 property damage claim that seƩled shortly aŌer being ﬁled but the plainƟff would not seƩle during the claim stage; two are vexaƟous, unfounded allegaƟons of misconduct by City staff; another is a cross-compliant by a developer blaming the City for damages it caused to a hillside above its property; one is from a bicyclist injured in a crash whose claim was rejected since he was riding on Highway 1 outside of City limits but the City was named as a defendant regardless; and the last is another bicyclist injured in a crash, this one on California Blvd., due to an alleged defect in the asphalt that the City believes can be safely traversed when used with due care. The 39 mulƟ-count complaints ﬁled for misdemeanor municipal code violaƟons contained a combined 394 citaƟons. Accomplishments & Challenges While the department did have to manage numerous Ɵme-intensive, persistent maƩers, such as the repeated aƩempts of a construcƟon company to ﬁle unƟmely damages claims stemming from its contract for a Public Works project, staff sƟll had many successes this year, including:  Support for the pre-liƟgaƟon seƩlement of a California Voter Rights Act demand that will transiƟon the City to a new method of voƟng called Citywide Single Vote, instead of implemenƟng by-district City Council elecƟons.  Streamlining the misdemeanor complaint process, with staff gaining direct, electronic access to Police-issued citaƟons and developing a new method of aƩorney review compliant with new State rules for race-blind charging.  Increased coordinaƟon among City staff and community partners at the County for misdemeanor arraignments resulƟng in more defendants appearing and being connected to services.  Advising on or conducƟng invesƟgaƟon into mulƟple complex personnel maƩers.  Advising City code enforcement staff on the 1150 Laurel code violaƟons and noƟce to vacate.  Working with outside counsel to tender mulƟple complex, potenƟally high-dollar liƟgaƟons to the insurance providers for construcƟon contractors.  Receiving payment for reimbursement of City staff Ɵme related to the Siever receivership (48/46 Prado Road commercial property with decades of hoarded vehicles and other debris). Page 116 of 349 Finance Finance Department A Year in Review Fiscal Year 2024-25 was a year full of accomplishments for the department. During the year, the Finance Department led and supported several iniƟaƟves to improve transparency and enhance operaƟons for the beneﬁt of the organizaƟon and community. Highlights include improvements to the business license renewal program, citywide payroll trainings, and ongoing work to receive reimbursement for winter 2023 storm damages. The Infrastructure Financing Program was temporarily reassigned to the department during FY 2024-25, which provided the opportunity to focus on training and report development to support the ongoing fee program administraƟon. Variance Analysis The department ﬁnished the year with savings of approximately $104k or 4% of its operaƟng budget. 98% of the savings were delivered from staffing budgets due to vacancies in the Financial Analyst posiƟon in the Revenue Division and the Finance Specialist in the AccounƟng Division. The Financial Analyst posiƟon was vacant for two months and was ﬁlled with an internal hire and the Finance Specialist took roughly eight months to ﬁll. Overages in Other OperaƟng Expenditures were driven by credit card processing fees which have increased 20% per year over the last two years as a growing share of fees and taxes are now paid by credit card. This line item exceeded budget by approximately $40k. As the department became aware of this looming overage, other expenditures were reduced or avoided if possible, including savings of more than $20k in EducaƟon & Training, Trips & MeeƟngs, and Memberships & CerƟﬁcaƟons, as these are the most discreƟonary budget lines for the department. Finance staff uƟlized free or low-cost webinars in place of aƩending conferences and events. The primary driver of savings in Contract Services was that no new specialized consulƟng engagements were funded during the ﬁscal year as there was no idenƟﬁed need. The Finance AdministraƟon division budgets approximately $20k per year for ad-hoc consulƟng; recent engagements have included debt ﬁnancing support and pension actuarial analysis. These savings are not expected to persist unless other funding sources for needed consulƟng work are idenƟﬁed. FY 2023-24 FY 2024-25 FY 2025-26 Finance Actual Budget Actual Funds Available % Budget Staffing 1,780,850$ 2,210,387$ 2,108,755$ 101,632$ 5% 2,221,065$ Contract Services 468,417 431,791 412,098 19,693 5% 497,506 Other Operating Expenditures 26,410 143,410 160,771 (17,360) -12% 131,525 Total 2,275,677$ 2,785,589$ 2,681,624$ 103,965$ 4% 2,850,096$ Page 117 of 349 Finance Performance Measures Objective Measure 2024-25 Target 2024-25 Actual Enables & enhances transparency, accountability & integrity # of calendar days following year-end until ACFR is issued 170 177 # of audits/reviews conducted / # of additional agreed upon procedure audits performed 2/2 2/2 Protects & prudently manages its financial resources # of funds within fund balance requirements / total funds with fund balance requirements 8/8 8/8 Net direct debt per capita (General Fund) $42 $35 Twelve-month total rate of return / City portfolio 3% 6.02% The department is pleased to report that four out of ﬁve targets were met or exceeded during the ﬁscal year, including a twelve-month total return on the City’s investment porƞolio that more than doubled the target thanks to strong market condiƟons. The Annual Comprehensive Financial Report (ACFR) was published within 177 days of year-end, slightly behind the target of 170 days but within the statutory limit of 180 days. The department changed its target from 180 to 170 with the 2023-25 Financial Plan, but due to Ɵming of receipts, auditor dependencies, and the high standards to which the City's ACFR is prepared, staff ﬁnd the 180 day statutory Ɵmeline sufficiently challenging to meet and intend to revise the target going forward. The net direct debt per capita for the General Fund was $35, beƩer than the target of $42, largely due to repayment of a ﬁre truck lease and energy conservaƟon loan. Targets were set based on prior year actuals and did not include these payoffs. Accomplishments & Challenges The department is proud to have delivered several signiﬁcant accomplishments. In the later half of FY 2024-25, the revenue division focused heavily on enhancing the City’s outreach efforts to increase compliance with business license requirements. While the FY 2025-26 renewal cycle is not yet complete, the work effort has been successful, as the division has sent a ﬁrst citaƟon to only 538 businesses, compared to 767 businesses who were cited in the prior cycle. The payroll team led an iniƟaƟve to provide various trainings to departments Citywide, including training for all new hires before their ﬁrst Ɵmecard is due, in an effort to improve compliance and reduce errors in Ɵmecards for hourly employees. The procurement division completed all applicaƟons to the Federal Emergency Management Agency (FEMA) for reimbursement of damages incurred in the Winter 2023 Storm events, and is in the midst of appealing FEMA’s determinaƟon that some projects are ineligible for reimbursement. To date, nearly $1 million has been received in reimbursement and an addiƟonal $1 million has been obligated for reimbursement by FEMA. As of the wriƟng of this report, an addiƟonal $6.74 million in projects is pending ﬁnal review by FEMA. In the later part of FY 2023-24, the department stepped in to lead the User and Regulatory Fee Study to compleƟon, culminaƟng with the successful adopƟon of a new Comprehensive Fee Schedule early in FY 2024-25. Leading up to Council’s adopƟon of the fee schedule and in the months following, the department led efforts to communicate fee changes to customers and other key stakeholders. The budget division helped City leadership navigate ﬂaƩening revenue and a looming deﬁcit and deliver a ﬁnancial plan that preserves service levels. This slowdown in revenue growth is expected to persist to some degree, and the Finance department looks forward to helping guide the City through measures to address the anƟcipated future budget deﬁcit. Page 118 of 349 Human Resources Human Resources A Year in Review The Human Resources Department (HR) conƟnued to support the organizaƟon while also striving to establish staffing stability within the department. With so many employees new to their roles, the department provided an array of learning and development opportuniƟes for employees across the organizaƟon as well as performance management and coaching support. The department successfully negoƟated a Ɵmely mulƟ-year successor resoluƟon with the City’s largest bargaining unit, implemented various process improvements, provided support for complex personnel issues, and completed a recruitment process for a new City Manager and Assistant City Manager. Variance Analysis Staffing was under budget due to four department posiƟons that remained vacant for an average of four months each, due to internal promoƟons as well as other transiƟons. This savings is not expected to persist, as the department is fully staffed as of early October 2025. Contract Services was under budget primarily due to unspent one-Ɵme carryover budget that was intended for consultant support for policy and training related work. These tasks ended up being completed with temporary and contract staff that was paid for using salary savings from unanƟcipated vacancies as described above. Other OperaƟng Expenditures were under budget due to several factors. Approximately half of the savings were due to the cost for department’s leased office space being overbudgeted. This has been corrected in the current year’s budget. Recruitment acƟvity was lower than the prior three years, which were excepƟonally high recruitment years. When the Fiscal Health ConƟngency Plan was implemented in April 2025, it further slowed recruitment acƟvity and associated expenses. While vacancy rates are difficult to predict, several years of trend data were analyzed to budget for the 2025-27 Financial Plan. The learning and development program pursued more City-led rather than consultant-led training and other lower cost alternaƟves. The program will conƟnue to pursue opƟons for delivering high value professional development opportuniƟes at a reduced cost. Due to transiƟons and acƟvaƟon of the Fiscal Health ConƟngency Plan, Human Resources staff aƩended fewer professional conferences overall. All of these savings are expected to be one-Ɵme in nature. For the 2025-27 ﬁnancial plan, adjustments have been made to address line items that may have been previously overbudgeted. Although some contracted expenses will increase, reducƟons were made elsewhere to constrain growth moving into FY 2025-26. FY 2023-24 FY 2024-25 FY 2025-26 Human Resources Actual Budget Actual Funds Available %Budget Staffing 1,321,146$ 1,628,410$ 1,492,891$ 135,519$ 8% 1,592,978$ Contract Services 797,660 190,251 133,293 56,958 30% 159,034 Other Operating Expenditures 60,657 576,688 454,232 122,456 21% 309,718 Total 2,179,463$ 2,395,349$ 2,080,416$ 314,933$ 13% 2,061,730$ Page 119 of 349 Human Resources Performance Measures Human Resources Performance Measures Objective Measure 2024-25 Target 2024-25 Actual Integrated HR Services Average Days between injury and Workers’ Compensation claim filed. 3 4 Integrated HR Services Achieved lower severity of Workers’ Compensation claims than the risk pool Yes Yes Integrated HR Services Annual liability claims payment under the Self-Insured Retention amount Yes Yes Employee Development & Growth Percentage of On-Time Employee Performance Evaluations 98% 97% Employee Development & Growth Percentage of Internal Promotions 35% 45% Employee Development & Growth Training Sessions Coordinated 20 26 Engaged and Aware Culture Number of Policies Communicated 90 100 Engaged and Aware Culture Informational Sessions Coordinated 130 150 The 2024-25 targets for Ɵmely workers’ compensaƟon claims and on-Ɵme performance evaluaƟons were narrowly missed, with an average of 4 days to ﬁle claims (target 3) and 97% of evaluaƟons completed on Ɵme (target 98%). These minor delays were largely due to new supervisors adjusƟng to their roles, which affected documentaƟon submission and evaluaƟon compleƟon. To address this, HR provided department- speciﬁc trainings, conducted performance management sessions for supervisors, and conƟnued monthly reminders to support Ɵmely submission of evaluaƟons. Accomplishments & Challenges Accomplishments Beneﬁts: Staff collaborated with the Police Department to implement annual wellness checks. The goal of this new program is to provide proacƟve mental health support. Recruitment, ClassiﬁcaƟon and CompensaƟon: A total of 116 recruitments were completed, of which 85 were for regular posiƟons, 4 for limited-term contract posiƟons, and 27 for temporary posiƟons. Four of the recruitments were for Police and Fire department promoƟons, which are more robust processes. The average Ɵme to hire for regular posiƟons was 88 days. Staff completed assessment centers to support the selecƟon of a new City Manager and Assistant City Manager. Labor RelaƟons: For the ﬁrst Ɵme in 25 years, the City and its largest bargaining group, the San Luis Obispo City Employees’ AssociaƟon (SLOCEA), reached a successor MOU before the current one expired. The City also provided educaƟonal sessions for unrepresented managers and conﬁdenƟal employees and renewed their ResoluƟons. These agreements are in place through June 30, 2028. MulƟ-year agreements are in place through June 30, 2027 with the Police Officers’ AssociaƟon, Police Staff Officers’ AssociaƟon, and the InternaƟonal AssociaƟon of Fireﬁghters Local 3523. Learning and Development: The City provided a comprehensive training program that included professional development, supervisor coaching, and compliance training, highlighted by two robust performance management sessions for supervisors. In addiƟon, four Day of Welcome events were offered for new hires. Page 120 of 349 Human Resources Risk Management and Wellness: The California Joint Powers Insurance Authority awarded the City a Liability Risk Management Award in recogniƟon of its success in managing claim costs. In May 2025, the City implemented an enhanced process to improve the recovery of costs resulƟng from third-party damage to City property. Because the program was live for just six weeks in FY 2024-25, the revenue impact was minimal. However, year to date cost recovery as of the Ɵme of report draŌing was +65% higher than the same period in the prior year. AdministraƟve IniƟaƟves: City employee personnel ﬁles were transiƟoned from paper to a secure virtual storage system. Following an extensive pilot program, the City also adopted a formal Telework Policy. Challenges Department Staffing: Vacant posiƟons and departmental transiƟons due to promoƟons conƟnue to force HR staff to shiŌ prioriƟes and adapt to changing circumstances. Complex Personnel MaƩers: The department conƟnues to experience a noƟceable increase in the number of complex personnel maƩers, including extended leaves of absence, disability accommodaƟons, and performance management/invesƟgaƟon oversight. Citywide Leadership Development: In FY 2024-25, the City onboarded 35 new supervisors, represenƟng approximately 30% of the supervisory posiƟons across the organizaƟon, creaƟng an opportunity to strengthen leadership across departments. These newly appointed leaders received targeted support through structured training, mentorship, and coaching, equipping them to manage their teams effecƟvely and align their efforts with organizaƟonal goals. Page 121 of 349 Insurance Fund Insurance Fund A Year in Review The City is a member of the California Joint Powers Insurance Authority (CJPIA) which provides coverage for general liability and workers’ compensaƟon through pooling of losses among its members and coordinates oversight and management of claims administraƟon. The City is a member of the excess program for both liability and workers’ compensaƟon, with a $500,000 self-insured retenƟon level for each. EffecƟve July 1, 2025, the liability program has a $1,000,000 self-insured retenƟon. Claims are managed by third party administrators, Carl Warren for Liability and Athens for Workers’ CompensaƟon. The City strives to maintain a reserve sufficient to guard against unpredictable and substanƟal claims. The reserve amount is determined based on annual actuarial report informaƟon. In addiƟon to the CJPIA member contribuƟons for liability and workers’ compensaƟon, the Fund also covers premiums for ancillary insurances such as property, crime, polluƟon, volunteers, and special events. Variance Analysis – Insurance Fund Expenditures The Workers’ CompensaƟon insurance account came in under budget, primarily because claim expenses were originally projected over the full life of each claim rather than being allocated to the current ﬁscal year. This created one-Ɵme savings, which has been adjusted in future budgets to more accurately reﬂect annual claim costs. City records show the Liability insurance account as over budget. However, the external trust account from which claim expenses are paid by the City’s third-party administrator had a remaining balance of $278,848 at year end. These funds will be used to pay claims expenses into FY 2025-26. The Other insurance account was over budget due to larger-than-anƟcipated increases in premiums, parƟcularly for property coverage. Given the ongoing volaƟlity in the insurance market, these higher costs are expected to conƟnue and the budget has been adjusted accordingly for future years. Insurance Fund Balance The table below details how the Insurance Fund Balance compares to the policy level: Fund Balance $4,437,620 Policy Level $7,455,000 Variance ($3,017,380) `FY 2023-24 FY 2024-25 FY 2025-26 Insurance Fund Actual Budget Actual Funds Available % Budget Workers' Compensation 1,605,230$ 2,610,281$ 1,094,776$ 1,515,505$ 58% 2,069,183$ Liability 2,502,805 2,333,686 2,435,666 (101,980) -4% 2,547,586 Other 646,521 781,152 869,361 (88,209) -11% 910,389 Total 4,754,556$ 5,725,119$ 4,399,803$ 1,325,316$ 23% 5,527,158$ Page 122 of 349 Insurance Fund The policy level is calculated based on an actuarial analysis provided by the City’s consultants. The consultants calculate the 75% conﬁdence level, or $5.0M, and the City’s policy is to hold fund balance equal to 150% of the 75% conﬁdence level, or $7.5M. The Fund balance above includes the savings from the FY 2024-25 budget and will beneﬁt from any expenditures savings in future years. Performance Measures Objective Measure 2024-25 Target 2024-25 Actual Integrated HR Services Annual liability claims payment under the Self-Insured Retention amount Yes Yes Accomplishments & Challenges Accomplishments During FY 2024-25, the City achieved several notable accomplishments in managing its insurance programs. Membership in the Workers’ CompensaƟon excess program has proven effecƟve in containing overall costs, resulƟng in lower annual contribuƟons to the CJPIA pool. AddiƟonally, volunteer insurance premiums were reduced through accurate reporƟng of the number of volunteers parƟcipaƟng in City programs, ensuring that costs more closely reﬂect actual exposure. Challenges The City faces ongoing challenges in managing insurance costs. Year-over-year changes in premiums remain difficult to predict, though several years of trend data were carefully analyzed in preparing the 2025–27 Financial Plan. Furthermore, the actuarial study prepared by Milliman (an independent actuarial) in November 2024 recommends higher reserves than the City has currently set aside, which could present future challenges in covering claim expenses. Page 123 of 349 Community Development Department Community Development Department A Year in Review The Community Development Department (CDD) completed all of the workplan items outlined in the City’s two-year ﬁnancial plan for FY 2024-25. While large-scale development and housing producƟon conƟnued, overall development acƟvity declined compared to prior years. This trend, reﬂected in permiƫng and inspecƟon volumes, aligns with naƟonal condiƟons inﬂuenced by high interest rates and construcƟon costs, as well as the compleƟon of several local major housing tracts in the previous ﬁscal year, resulƟng in fewer projects in FY 2024-25. Variance Analysis Community Development Department OperaƟng Expenditures The Department ended FY 2024-25 under budget by 16%, primarily due to unspent contract services funds. Revenues did not materialize as originally anƟcipated, prompƟng the Director to limit discreƟonary spending. Internal department projects were paused or delayed, including the iniƟaƟve to digiƟze historical plans, reducing the need for consultant support. More plan reviews were completed in-house, and permit acƟvity declined. AddiƟonal details on contract services are provided below. Staffing Staffing expenditures came in 7% under budget, consistent with the prior year. While staffing levels stabilized at the beginning of the year, the department experienced mulƟple employee leaves and conƟnued recruitment challenges. The Engineering Division has faced persistent staffing shortages over the past three years. To maintain conƟnuity of operaƟons, the Engineering Division relied on contract and temporary staff for part of the ﬁscal year. A posiƟve development was the successful hiring of a Supervising Civil Engineer, who will provide leadership and support to the division. The Deputy Director/Building Official posiƟon in the Building and Safety Division became vacant during the year. A consultant was retained to fulﬁll the duƟes of a Building Official, with oversight provided by the Community Development Director and supervisory staff. The Planning Division achieved greater stability through the hiring of three interns and permanent staff. The Division is currently focused on onboarding and training new staff. Contract Services Contract Services expenditures came in 41% under budget. Savings were generated due to department- speciﬁc contracts that were paused or not iniƟated, and subsequently closed out, based on the Director’s aim to limit spending to align with the slowing pace of development in the community. An addiƟonal $390,000 was unspent from the Plans Check account, which is used to hire consultants for FY 2023-24 FY 2024-25 FY 2025-26 CDD Actual Budget Actual Funds Available %Budget Staffing 5,642,668$ 6,789,924$ 6,313,612$ 476,313$ 7% 6,429,444$ Contract Services 1,332,766 2,277,570 1,351,638 925,932 41% 2,395,627 Other Operating Expenditures 181,838 260,845 197,086 63,759 24% 234,695 Total 7,157,271$ 9,328,340$ 7,862,336$ 1,466,003$ 16% 9,059,766$ Page 124 of 349 Community Development Department development reviews. Staff were directed to complete more work in-house to reduce costs, as permit acƟvity declined and revenues were expected to fall short of projecƟons. Plans Check budgets were reduced in line with revenue in the FY 2025-26 budget, and savings are expected to decrease. Other OperaƟng Expenditures Other OperaƟng Expenditures came in 24% under budget due largely to a spending pause set by the Community Development Director, which restricted all divisions to essenƟal purchases only. An addiƟonal $32,000 in savings was achieved following the implementaƟon of the Fiscal Health ConƟngency Plan in April 2025, which suspended non-essenƟal travel and training acƟviƟes. Fee Revenue Development Services Revenue As noted in the above secƟon, in FY 2024–25, development fees generated nearly $5.7 million, 13% below projecƟons. This was primarily due to a decrease in the number of building permits and plan reviews. This drop stemmed from economic uncertainty, inﬂaƟon, and the compleƟon of major projects in the prior year, which reduced the volume of new projects for FY 2024-25 and subsequent ﬁscal years. The department lowered its revenue forecast for FY 2025-26 by 30% to align with current trends (and will be monitored closely throughout the current year). Despite the slowdown in building permit applicaƟons, Planning and Zoning applicaƟons exceeded targets, and encroachment permits remained steady, indicaƟng ongoing interest in development. Based on these year-end results, staff now expect to exceed the reduced revenue budget in FY 2025-26. Performance Measures Objective Measure 2024-25 Target 2024-25 Actual Affordable housing production Strategic Goal: Housing Number of affordable housing units secured through entitlements or construction 50 216 Provide Excellent Customer Service Strategic Goal: Other Department Objective Customer survey response positivity rate 85% 93% FY 2023-24 FY 2024-25 FY 2025-26 Development Review Actual Budget Actual Variance % Budget Planning & Zoning Fee 527,041$ 642,177$ 686,430$ 44,253$ 7% 589,625$ Development Review Fees 309,447 406,358 289,843 (116,515) -29% 251,100 Encroachment Permits 367,913 340,659 449,257 108,598 32% 410,105 Infrastructure Plan Check & Inspection 808,190 1,019,227 683,441 (335,786) -33% 473,252 Engineering Development Review Fees 102,449 168,061 130,429 (37,632) -22% 115,951 Building Permits 2,787,384 2,689,953 1,804,309 (885,644) -33% 1,909,327 Code Enforcement Fines 27,844 79,617 30,436 (49,181) -62% 33,352 Plan Check Fees 1,239,026 1,239,279 1,049,305 (189,974) -15% 824,100 Early Residential Development Fees 104,800 - - - 0% - Building Inspection Fees - - 572,035 572,035 0% - Industrial User Permits 2,879 - 1,846 1,846 0% - Total Revenue 6,276,972$ 6,585,331$ 5,697,332$ (887,999)$ -13% 4,606,812$ Page 125 of 349 Community Development Department Ensure a Safe Community Strategic Goal: Housing Percent of Code Enforcement cases investigated on- time: First Tier - 24 Hours, Second Tier - 2 Days, and Third Tier - 3-5 Days 85% 60% Development Review activities Strategic Goal: Other Department Objectives Percent of time that the Department met or exceeded the established timelines for development review (such as review of entitlement applications) 75% 84% Building Permit Review activities Strategic Goal: Economic Stability Percent of building permit reviews completed within established cycle times (all departments) 85% 59% The Department met three of ﬁve performance targets in FY 2024-25. The performance of each target is explained further below.  Affordable Housing Units Secured: A total of 216 affordable units were secured, exceeding the target of 50. This reﬂects the effecƟveness of recent pro-housing policies and supports progress toward the City’s Regional Housing Needs Assessment (RHNA) goals. Below is a table of the City’s RHNA progress as of the end of FY2024-25. Income Level 6th Cycle RHNA AllocaƟon Building PermiƩed Units Issued by Affordability Total Units by Income Level Total Units Remaining by Income Level (% of County Median Income) Year 1 (2019) Year 2 (2020) Year 3 (2021) Year 4 (2022) Year 5 (2023) Years 6 – 10 (2024 - 2028) Extremely Low Deed Restricted 0 0 14 36 0 123 173 500 Non- Deed Restricted 825 0 0 0 0 0 0 0 Very Low Deed Restricted 0 14 42 14 22 60 152 Non- Deed Restricted 0 0 0 0 0 0 0 Low Deed Restricted 520 6 0 36 21 5 15 83 214 Non- Deed Restricted 0 30 46 50 0 97 223 Moderate Deed Restricted 603 8 5 9 2 4 13 41 519 Non- Deed Restricted 0 0 0 0 43 0 43 Page 126 of 349 Community Development Department Above Moderate 1,406 523 416 472 439 293 190 2,333 0 Total Units 3,354 537 465 619 562 367 442 2,992 Total Remaining for RHNA Period: 1,233  Customer SaƟsfacƟon: SaƟsfacƟon levels remain high. The department conƟnues to improve transparency and efficiency through expanded online services and real-Ɵme performance dashboards that track permit Ɵmelines, code enforcement, and customer service metrics.  Code Enforcement Response Time: The department fell below its response Ɵme goal of 85%. A total of 1,426 requests were received in FY 2025, which is a 26% increase from the prior year and a 232% increase since FY 2022. This signiﬁcant rise in request volume, combined with the division retaining exisƟng staffing levels over that same Ɵme period, has required prioriƟzaƟon of cases based on urgency. Priority 1 requests are generally in response to criƟcal building failures such as a vehicle collision or structure ﬁre. These requests come directly from Police Dispatch and receive an immediate on-call or next day response from Building InspecƟon or Code Enforcement personnel. Given the high priority of these calls, communicaƟon protocols are set to always meet the expected response Ɵme. Response rate for Priority 2 requests were 49%, Priority 3 request were 60% and response rate for Priority 4 requests were 61%. The lower rate for Priority 1 requests may be lower due to the requirements of gaining interior access to verify complaints.  Development Review AcƟviƟes: The department exceeded its target by meeƟng development review cycle Ɵmes 84% of the Ɵme, surpassing the 75% goal despite an increase in complex and resource intensive applicaƟons.  Building Permit Review Cycle Time: The target was not met; however, performance improved by 9% compared to the prior year. The department is analyzing review Ɵmelines across mulƟple departments involved in permit review to idenƟfy potenƟal process boƩlenecks. In the meanƟme, acƟons taken include enhanced staff training on required Ɵmeframes and increased oversight, parƟcularly for housing-related permits. Accomplishments & Challenges The Community Development Department achieved several key milestones that strengthened internal operaƟons and advanced citywide iniƟaƟves. The department expanded the use of digital tools to streamline development reviews, and improved interdepartmental coordinaƟon to support complex projects. The Planning Division advanced major development projects and iniƟaƟves including updaƟng the Margarita Area and Airport Area Speciﬁc Plans to facilitate addiƟonal housing capacity and iniƟaƟng the Broadstone Village and San Luis Ranch Lot 7 projects, two large inﬁll housing development projects. Housing and Homelessness Response remained a priority, as staff facilitated the approval of more than 500 affordable units that are currently in the pipeline. Notable affordable housing projects that were iniƟated included the Waterman Village and Calle Joaquin Homekey. The City permiƩed an expansion of CAPSLO’s 40 Prado safe parking program from seven to twelve spaces and a new rotaƟng overnight safe Page 127 of 349 Community Development Department parking pilot program for twelve addiƟonal spaces at ﬁve host site locaƟons. Regular encampment clean ups occurred through coordinaƟon of homelessness response ﬁeld team representaƟves, implementaƟon of the CAMP standards and responding to ASK SLO requests. ParƟcipaƟon in the NaƟonal League of CiƟes Healthy Housing InnovaƟon Cohort elevated the City’s visibility in addressing housing equity and resilience. The Building and Safety Division processed thousands of building permits and worked closely with the development community to bring projects to compleƟon. The building inspecƟon team inspected and issued CerƟﬁcates of Occupancy for several key projects including the Anderson Hotel, Springhill Suites and Residence Inn in San Luis Ranch, and Tiburon Place. The Code Enforcement team processed a record number of invesƟgaƟon requests and facilitated several large-scale invesƟgaƟons including extensive work related to 1150 Laurel Lane to aƩempt to bring a dangerous building into compliance. Staff improvements across most divisions contributed to greater operaƟonal stability. The department ﬁlled long-standing vacancies and advanced succession planning efforts. However, the departure of the Chief Building Official created a gap in the Building & Safety Division, requiring interim adjustments to maintain conƟnuity. The department conƟnued to navigate ﬁscal constraints, including a mid-year revenue shorƞall and rising operaƟonal costs. These pressures required reprioriƟzaƟon of work programs and limited the ability to fund consultant support for plan review and technical services. AddiƟonally, increased demand for code enforcement and administraƟve support presented a challenge for the department, however, the department was able to quickly pivot to address emerging issues such as 1150 Laurel Lane, and Fraternity zoning compliance issues. To meet the challenges, the department remained agile, adjusƟng work programs, reallocaƟng resources, and maintaining transparency through regular updates to city leadership, its public-facing website, and performance dashboards. These efforts reﬂect the department’s commitment to conƟnuous improvement, community responsiveness, and alignment with City goals. Looking ahead, the department is well-posiƟoned to build on this progress through stabilized staffing, enhanced interdepartmental collaboraƟon, and robust community partnerships. Page 128 of 349 Public Works Public Works A Year in Review The Public Works Department closed the ﬁscal year under budget, achieving approximately 7% in expenditure savings while successfully delivering core services to the community and meeƟng FY 2024– 25 workplan goals. Ask SLO, the City’s resident response plaƞorm, conƟnues to be a well-used resource for community members. As part of the 2025–27 Financial Plan, Council approved the addiƟon of a Heavy Equipment Mechanic, which is expected to reduce reliance on contracted services beginning in FY 2025–26. In the year ahead, the Maintenance Division will conƟnue seeking creaƟve strategies to control costs while maintaining service levels. The CIP Engineering and TransportaƟon Planning & Engineering programs ﬁlled several long-term vacancies (Supervising Civil Engineer, ConstrucƟon Engineering Manager, and TransportaƟon Planner- Engineer) with highly qualiﬁed staff. Turnover among Capital Project Managers remains a concern; however, adopƟon of the Capital Improvement Plan in June 2025 has helped balance workloads across the CIP Engineering Team, enabling staff to focus efforts more effecƟvely. The Parking Services program has conƟnued its commitment to improving the customer experience while building operaƟonal efficiencies. Public outreach remains a priority to ensure that the community is informed about changes and has opportuniƟes to provide feedback. SLO Transit conƟnues to provide reliable transit service for more than 660,000 passenger trips across eight ﬁxed routes, one tripper service, and one trolley service, supported by a ﬂeet of 19 vehicles. In FY 2024- 25, six new buses were added to the ﬂeet and are expected to enter service by Spring 2026. SLO Transit also advanced iniƟaƟves to increase ridership, including streamlining discount program applicaƟons, parƟcipaƟng in community events, and extending the academic service schedule through June. Variance Analysis General Fund Expenditures Staffing: Staffing ended the year 7% under budget as full-Ɵme posiƟon vacancies resulted in salary savings in many programs, including Public Works AdministraƟon, Parks Maintenance, FaciliƟes Maintenance, Fleet Maintenance, Streets & Sidewalk Maintenance, CIP Engineering and TransportaƟon Planning & Engineering. Temporary (supplemental) posiƟon vacancies likewise added to these savings. Staff sought out contracted services through funds available in Other Contract Services to support programs during staffing vacancies. `FY 2023-24 FY 2024-25 FY 2025-26 Public Works Actual Budget Actual Funds Available %Budget Staffing 10,632,237$ 12,113,200$ 11,218,075$ 895,125$ 7% 12,143,529$ Contract Services 2,465,258 2,606,070 2,468,516 137,554 5% 2,574,965 Other Operating Expenditures 3,941,471 4,322,533 4,021,344 301,188 7% 4,304,258 Total 17,038,967$ 19,041,802$ 17,707,935$ 1,333,867$ 7% 19,022,753$ Page 129 of 349 Public Works Other OperaƟng Expenditures: Much of the remaining operaƟng budget savings is due to savings on water and sewer costs in Parks Maintenance, driven by winter rain and temperate spring and summer months. Cost recovery on damaged City property (e.g. Sidewalks) through Citywide collecƟon efforts at the end of the year also posiƟvely impacted the department’s budget balance, as private reimbursements on previous years’ repairs were applied to the operaƟng budget. Parking Fund Expenditures Contract Services: This category includes the budget for parking structure security services, legal support services, and addiƟonal consulƟng services; however, these allocaƟons were not uƟlized, as operaƟonal adjustments reduced the need for these expenditures, resulƟng in savings in Contract Services. In lieu of a separate parking security service contract, staff made operaƟonal adjustments, including adding a late- night shiŌ for the parking ambassador schedule, which eliminated the need for contracted security. The adopted budget for FY 2025-26 Other Contract Services accounts for these operaƟonal changes, reﬂecƟng a reducƟon in operaƟng budget. Other OperaƟng Expenditures: AdverƟsing & Public Outreach and Print & ReproducƟon costs decreased due to greater use of digital markeƟng and efficiencies in communicaƟon and permit management. These budgets have been reduced for FY 2025-26 with the expectaƟon that such efficiencies will conƟnue. Maintenance costs also declined compared to prior years, in part due to improvements implemented through the Parking Technology Roadmap. AddiƟonally, some non-essenƟal work, such as sign pole maintenance, was deferred to offset revenue losses caused by technology failures. Debt Service: Debt Service is under budget due to an accounƟng adjustment. Parking Fund Revenue `FY 2023-24 FY 2024-25 FY 2025-26 Parking Fund Actual Budget Actual Funds Available %Budget Staffing 1,991,075$ 2,208,664$ 2,138,507$ 70,157$ 3% 2,198,513$ Contract Services 862,591 782,601 645,512 137,089 18% 683,580 Other Operating Expenditures 967,528 1,135,504 1,058,764 76,741 7% 1,066,951 Debt Service 3,016,362 3,827,322$ 3,500,278$ 327,044 9% 3,696,534 Transfers Out 1,387,281 1,632,053$ 1,632,053$ - 0% 1,720,732 Total 8,224,837$ 9,586,144$ 8,975,113$ 611,030$ 6% 9,366,310$ FY 2023-24 FY 2024-25 FY 2025-26 Parking Fund Actual Budget Actual Variance % Budget Meters 5,927,488$ 4,312,367$ 4,589,728$ 277,361$ 6% 4,312,367$ Structures 1,757,776 2,860,504 1,886,338 (974,166) -34% 2,860,504 Long-Term Parking 702,797 901,906 522,895 (379,011) -42% 500,000 Fines 1,190,030 1,252,200 1,113,016 (139,184) -11% 1,231,100 Other Revenue 3,669,687 664,884 2,684,563 2,019,679 304% 671,984 Total Revenue 13,247,779$ 9,991,861$ 10,796,540$ 804,679$ 8% 9,575,955$ Page 130 of 349 Public Works Meters: Including the approximate 30% rate reducƟon effecƟve July 8, 2024 following the compleƟon of a Parking Rate Study presented to Council in May 2024, Parking Lot and Meter revenue (on-street parking and surface lots) exceeded budget and are expected to conƟnue meeƟng or surpassing targets in FY 2025– 26. This indicates that on-street parking acƟvity has increased under the reduced rate structure. Structures: Parking Structure revenue was negaƟvely affected in FY 2024–25 by the gateless system at the 842 Palm Street garage and failing gated equipment at the 919 Palm and 871 Marsh garages. In November 2024, Council appropriated $1.2 million from the Parking Fund balance to replace payment and gaƟng equipment at all three garages. The upgrades, completed between March and June 2025, have already produced substanƟal revenue increases in the fourth quarter. Staff expect parking structure revenue in FY 2025–26 to meet or exceed projecƟons, pending further data. Fines: CollecƟons in FY 2024-25 were hampered by both staff turnover and issues with the City’s former citaƟon management vendor, which leŌ citaƟons daƟng back to 2022 uncollected. A new vendor has improved the system signiﬁcantly, leading to a steady revenue increase beginning in the fourth quarter. As a result, ﬁne revenue is projected to meet or exceed FY 2025–26 targets. Other Revenue: Other Revenue was over budget by $2 million, due largely to $1.7 million generated through higher returns on investments. Elevated interest rates during FY 2024–25 produced stronger earnings on pooled cash balances, while budget assumpƟons remained conservaƟve. Fair Market Value (FMV) adjustments were also recorded to capture unrealized gains in the porƞolio. Investment interest is based on available cash, and as the Cultural Arts District Parking Structure construcƟon progresses toward compleƟon, cash balance will dwindle; therefore, staff do not expect investment income to remain at these levels next year. Other Rent & Lease Revenue exceeded budgeted amounts by $115,000 primarily due to the implementaƟon of GASB 87 (Governmental AccounƟng Standards Board 87), which changed how lease revenues are recognized. Under the new standard, the City must recognize the value of lease payments over the full term of the lease rather than only when payments are received, resulƟng in higher reported revenue in the current year. Transit Fund Expenditures Staffing: Staffing expenses came in under budget primarily due to delays in hiring a Transit Intern and an AdministraƟve Assistant, whose posiƟon is shared across the Transit Fund, Parking Fund, and General Fund. Contract Services: Contract Services expenses were under budget because the Transit Fund allocates for full-service levels, while SLO Transit conƟnues to operate at slightly reduced levels compared to pre- pandemic service. Full operaƟons are planned to resume in early 2026 in alignment with the adopted 2025 Short Range Transit Plan. `FY 2023-24 FY 2024-25 FY 2025-26 Transit Fund Actual Budget Actual Funds Available %Budget Staffing 389,893$ 463,464$ 420,819$ 42,644$ 9% 391,095$ Contract Services 3,592,192 4,622,175 4,393,486 228,689 5% 4,975,295 Other Operating Expenditures 431,255 483,670 612,639 (128,969) -27% 637,680 Transfers Out 463,491 460,609$ 460,609$ - 0% 467,804 Total 4,876,832$ 6,029,918$ 5,887,553$ 142,365$ 2% 6,471,873$ Page 131 of 349 Public Works Other OperaƟng Expenditures: Other OperaƟng Expenditures exceeded budget due to a 38% increase in average fuel costs per gallon since the beginning of the ﬁscal year, as well as higher-than-anƟcipated electricity usage for electric buses. Fuel and electricity budgets have been adjusted for FY 2025–26, and will be monitored closely in the coming year. Transit Fund Revenue: Fees for Service: This line was accurately forecasted and staff are pleased to achieve farebox recovery targets for the ﬁscal year. Other Revenue: State funding sources such as Local TransportaƟon Fund (LTF), State Transit Assistance (STA), and State of Good Repair (SGR) are budgeted based on projected state revenues, which may be revised throughout the year as updated projecƟons are released. In January 2025, the City executed an agreement with the San Luis Obispo Council of Governments (SLOCOG) to secure state grant funding for several capital projects, reﬂected in Other State Grants. Federal grants budgeted in various FTA 5307 accounts, as well as in Other Federal Grants, are reimbursement-based, meaning expenditures must occur before reimbursement requests can be submiƩed. Several capital projects budgeted in FY 2024-25 and funded with FTA 5307 grants are sƟll in progress and have not yet incurred all eligible reimbursable expenses. The associated grant funds remain available for future reimbursement once project expenses are incurred. Public Works Department Performance Measures Objective Measure 2024-25 Target 2024-25 Actual Enhance safe and efficient transportation Pavement Condition Index 73 74 Enhance safe and efficient transportation Bicycle network in total miles (Class I/II/III/IV) 14.6/31.0/24.9/3.0 14.6/31.0/24.9/3.0 Enhance safe and efficient transportation Street miles maintained 144 144 FY 2023-24 FY 2024-25 FY 2025-26 Transit Fund Actual Budget Actual Variance % Budget Fees for service 46601-Bus Fare 250,790 226,000 234,855 8,855 4% 260,000 46602-Cal Poly Transit Agreement Revenues 750,000 750,000 750,000 - 0% 750,000 Other Revenue 44101-Interest on Investment 257,261 - 314,219 314,219 0% 30,455 44107-Investment FMV Adjustment 120,063 - 180,234 180,234 0% - 44301-Sale of Surplus Property - - 4,500 4,500 0% - 44310-Miscellaneous Revenue - - 1,387 1,387 0% - 45208-LTF Art 4 Sec 99260 (Discretionary LTF) 496,193 1,992,000 1,957,532 (34,468) -2% 2,000,000 45209-STA Revenue 717,650 732,000 608,906 (123,094) -17% 725,000 45211-Other State Grants - 880,000 - (880,000) -100% - 45216-Low Carbon Operation Revenue - - 376,368 376,368 0% - 45302-FTA 5307 (Capital) 684,498 3,575,985 944,492 (2,631,493) -74% 2,693,785 45303-FTA 5307 (Preventative Maintenance) - - 211,296 211,296 0% 210,765 45304-FTA 5307 (Operating) - - - - 0% 2,647,775 45305-Other Federal Grants 2,802,275 8,893,876 7,135,073 (1,758,803) -20% 2,701,956 45215-State of Good Repair (SGR) 394,054 9,325 9,943 618 7% 8,722 45402-Other Grants/Subventions - - 498,473 498,473 0% - 47003-Miscellaneous 2,326 - 2,332 2,332 0% - Total Revenue 6,475,111 17,059,186 13,229,610 (3,829,576) -22% 12,028,458 Page 132 of 349 Public Works Enhance safe and efficient transportation Citywide fatal and severe injury crashes (latest annual total/5-year running average) 18 / 17.6 25/20.0 Encourage sustainable transportation Annual SLO Transit ridership 625,000 660,056 Effectively manage City assets Public Works Maintenance Division Ask SLO requests addressed 1,660 1,567 Effectively manage City assets # of trees maintained 13,479 13,494 Plan and develop critical infrastructure Total # of projects managed 68 68 Annual SLO Transit Ridership: Ridership increased this ﬁscal year, driven primarily by a 22% rise in Cal Poly related trips compared to the prior year. The increase in ridership is due to a combinaƟon of factors including restoraƟon of services, improved communicaƟon and outreach efforts, and Cal Poly’s conƟnued commitment to limiƟng students that live on campus from bringing vehicles to campus. Citywide Fatal and Severe Injury Crashes: Fatal crashes have shown an upward trend in the past ﬁve years, while severe injury crashes have been increasing for the past seven years. In 2024, 80% of these incidents occurred on the City’s High Injury Network, as deﬁned in the DraŌ Vision Zero AcƟon Plan. Predominant factors included vehicle–bicycle and vehicle–pedestrian collisions, as well as crashes on higher-speed arterial roadways. The 2024-25 Target for fatal/severe injury crashes was originally set at a desired reducƟon of 10% below the previous annual total/average; however, as shown in the above table, this target was not met in the 2024-25 year-end actuals. While it is difficult to idenƟfy a speciﬁc reason to explain the variaƟon in collision totals from one year to the next, there are several safety projects currently in planning or design along high-injury network roadways that will hopefully lead to measurable progress in reducing fatal/severe collisions in the coming years. These include the Higuera Complete Streets Project (ETA – 2026), recent Grand Avenue Complete Street Pilot Project (completed in early 2025), Foothill Boulevard Complete Street Project, and South Broad Complete Street Project. More detailed data and strategies to improve traffic safety will be presented in the Final Vision Zero AcƟon Plan, scheduled for City Council consideraƟon in Spring 2026. Accomplishments & Challenges The department conƟnued to address Major City Goals as outlined in the 2023-25 Financial Plan, while also delivering on core services. The Maintenance Division completed LED lighƟng retroﬁts at the 879 Morro Street office (UƟliƟes) and parƟally completed LED lighƟng retroﬁts at the 919 Palm Street offices (Public Works & CDD), as well as at eight park restrooms (French, Islay, Johnson, Mitchell, Santa Rosa, Throop, Laguna Lake, and Damon Garcia Parks), improving energy efficiency, reducing costs, and enhancing long-term safety. The Urban Forest Program advanced progress toward the City’s goal of planƟng 10,000 new trees by 2035, planƟng 63 new trees in FY 2024-25 and becoming fully staffed with cerƟﬁed arborists. Fleet Maintenance conƟnued pursuing operaƟonal efficiencies by purchasing Ɵres and parts through state contract pricing and opƟmizing inventory levels, while Signals & Streetlights strategically increased its stock of specialized parts to minimize downƟme during repairs. Despite these accomplishments, new and aging City assets Page 133 of 349 Public Works combined with staff vacancies have increased workloads, requiring teams to prioriƟze tasks while maintaining service levels. The CIP Engineering program advanced the Capital Improvement Plan, compleƟng 31 projects and bringing 14 addiƟonal projects into construcƟon in FY 2024–25. Despite staffing challenges, construcƟon began on the Mid-Higuera Bypass Project and the Mission Plaza Enhancement Project, and work conƟnued on the Cultural Arts District Parking Structure. The TransportaƟon Planning & Engineering program completed the North Chorro Greenway and 2024 Roadway Sealing projects, while advancing design of the Higuera Complete Street Project and the California/TaŌ Roundabout. The Parking Services program implemented several improvements outlined in the Parking Rate Study and Technology Roadmap, improving long-term challenges. These included streamlining mobile parking payments to a single mobile app, the transiƟon to digital garage parking permits, implementaƟon of new citaƟon and permit management soŌware, new consistent garage gaƟng, and the selecƟon of a new, user- friendly vendor for pay staƟons. These efforts were bolstered by a comprehensive public outreach campaign, working hand-in-hand with key stakeholders. Staff opened a new parking lot at 1166 Higuera Street, allowing for addiƟonal spaces in the Downtown Area while the City awaits compleƟon of the new parking structure in early 2026. As the program works to beƩer serve the community’s needs, staff are embracing opportuniƟes to strengthen capacity and idenƟfy efficiencies despite limited staffing and high turnover of supplemental staff. The Transit OperaƟons & Maintenance program conƟnued efforts to expand ridership and meet community needs. Council adopted the Short-Range Transit Plan Update, which outlines service, fare, and program changes over FY 2025–26 through FY 2029–30, and approved addiƟonal funding to support its recommendaƟons. Staff executed agreements for an open-loop payment system, which will allow riders to pay fares directly with contactless bank cards, smartphones, or other digital wallets, eliminaƟng the need for a separate transit card. This system is expected to simplify rider experience, reduce barriers to use, and encourage ridership. The rollout of zero-emission technologies advanced through strong partnerships with federal, state, and local funding agencies. Recruitment and retenƟon of transit workers has steadily improved, and services are expected to return to pre-pandemic levels by early 2026. However, uncertainty over future federal transit funding remains a concern and is being closely monitored. Page 134 of 349 Utilities UƟliƟes Department A Year in Review The UƟliƟes Department completed several projects and started many important iniƟaƟves in FY 2024-25, including: 1. Successful update of the solid waste, recycling, and organics franchise agreements into one Discarded Materials Agreement, which includes more service enhancements for ratepayers. 2. Update of a new regional integrated solid waste rate-seƫng methodology prioriƟzing transparency, ease of administraƟon, and rate stability for ratepayers. 3. Successful adopƟon of water and sewer rates ensuring sustainable, cost-based uƟlity funding. 4. SubstanƟal compleƟon of the Water Resources Recovery Facility (WRRF) upgrade project. 5. CompleƟon of the Johnson – Iris to Bishop Water Pipeline Replacement project. 6. CompleƟon of the Water DisinfecƟon byproduct (TTHM) ReducƟon project. 7. CompleƟon of the Verde, Luneta, Ramona Wastewater CollecƟons Systems project. 8. CompleƟon of the Wastewater CollecƟon System Infrastructure Renewal Strategy – a long-range plan which will inform staff and Council on the future of the City’s private sewer lateral programs (rebates, offsets and inspecƟons), system capaciƟes to accommodate housing development and recommended City capital improvement projects. Variance Analysis Solid Waste and Recycling Expenditures Staffing – Staffing includes all salaries and beneﬁts related to Solid Waste and Recycling operaƟons. There is no variance in this cost category. Contract Services – Some of the acƟviƟes related to contract services include adverƟsing and public outreach, recycling consulƟng services and long-range studies. Underspending in this account is the result of the deferral of the departmentwide comprehensive strategic plan. Due to the extended schedule of the Water Resource Recovery Facility (WRRF) upgrade project, staff deferred this study to allow this effort to be conducted department wide. Other OperaƟng Expenditures – Underspending within other operaƟng expenditures resulted from not needing postage, as the majority of physical outreach and noƟcing responsibiliƟes were carried out by the solid waste hauler and the Integrated Waste Management Authority (IWMA). Minor underspending also intenƟonally occurred in Miscellaneous Materials and Supplies to offset staff aƩendance to industry- `FY 2023-24 FY 2024-25 FY 2025-26 Utilities Actual Budget Actual Funds Available %Budget Staffing 321,483$ 329,587$ 329,587$ 0$ 0% 324,899$ Contract Services 80,770 33,299 29,308 3,991 12% 52,636 Other Operating Expenditures 8,799 42,578 38,607 3,971 9% 17,708 Total 411,052$ 405,464$ 397,502$ 7,962$ 2% 395,243$ Page 135 of 349 Utilities speciﬁc conferences. Budgets for these categories have been adjusted in the future years to more accurately reﬂect expected spending levels. Solid Waste and Recycling Revenues The Solid Waste and Recycling program is funded through a combinaƟon of AB 939 fees and General Fund support. AB 939 fees, which are collected from ratepayers, are restricted for use on acƟviƟes that divert solid waste and organics from the landﬁll. Any porƟon of these fees that remains unspent at year-end is placed into the General Fund “assigned” fund balance (AB 939 DesignaƟon) and reserved exclusively for future diversion-related expenditures. This ensures that balances can be applied to larger-scale waste reducƟon iniƟaƟves as they arise. Because the program also receives General Fund support for acƟviƟes unrelated to waste diversion, the AB 939 expenses shown in the following table represent only the diversion-eligible porƟon of program costs and may not align with the program’s total operaƟng expenditures. FY 2024-25 AB 939 Designation Overview Amount AB 939 Beginning Balance $217,147 AB 939 Revenues $362,164 AB 939-Eligible Expenses $345,273 Revenues minus Expenses $16,891 AB 939 Ending Balance $234,038 Any remaining balance is transferred to the AB 939 DesignaƟon and used for future diversion efforts. Examples of potenƟal future acƟviƟes include: 1. Organics diversion program expansion 2. Expanded business and mulƟ-family complex recycling outreach 3. ConstrucƟon and demoliƟon material recovery iniƟaƟves 4. Upgraded City recycling infrastructure Water Fund Water Fund Expenditures Staffing – Staffing includes all salaries and beneﬁts related to Water Division operaƟons. Variances were primarily driven by vacancies in several posiƟons, including: 1. UƟliƟes Business Manager `FY 2023-24 FY 2024-25 FY 2025-26 Water Expenditures Actual Budget Actual Funds Available %Budget Staffing 5,427,469$ 6,118,060$ 5,589,266$ 528,793$ 9% 6,182,758$ Contract Services 810,950 1,119,298 931,942 187,356 17% 1,372,520 Other Operating Expenditures 11,882,398 15,545,338 14,079,375 1,465,964 9% 19,644,682 Debt Service 1,755,022 1,868,807$ 1,762,421$ 106,386 6% 1,865,911 Transfers Out 2,826,143 2,947,417$ 2,947,417$ - 0% 2,819,038 Total 22,701,983$ 27,598,920$ 25,310,420$ 2,288,499$ 8% 31,884,908$ Page 136 of 349 Utilities 2. Supervising UƟlity Billing Assistant 3. UƟliƟes Senior Engineer 4. Water Resources Technician 5. AdministraƟve Assistant 6. Water Treatment Plant Maintenance Technician 7. Water DistribuƟon Chief Operator 8. Water DistribuƟon System Supervisor Some of these posiƟons were vacant for only a porƟon of the year, but collecƟvely they contributed to lower-than-budgeted staffing costs. Contract Services – Some of the acƟviƟes related to contract services include permiƫng fees and regulatory sampling, meter reading services, rouƟne asset maintenance, and various studies. A total underspend of $187,000 is primarily aƩributed to deferred projects and reduced operaƟng needs. For example, about $25,000 resulted from lower diesel fuel purchases for the Water Treatment Plant’s emergency generator, which operated for only 16.9 hours due to the absence of PSPS events or outages. Another $27,000 stemmed from delaying the department-wide strategic plan unƟl compleƟon of the WRRF upgrade to ensure alignment with post-project prioriƟes. AddiƟonally, $28,000 is Ɵed to deferring the rate structure analysis because of limited staff capacity. While a rate study update was completed, the full structure analysis—which may redesign rate applicaƟons in terms of Ɵers, base fees, etc.—will be iniƟated in FY 2025-26. Overall, the variances reﬂect Ɵming and operaƟonal factors rather than ongoing cost reducƟons. Other OperaƟng Expenditures – Some of the acƟviƟes related to other operaƟng expenditures include costs associated with purchasing raw water supplies, electric uƟliƟes, construcƟon materials and supplies, and chemicals. A total underspend of approximately $1.47 million is primarily due to reduced operaƟonal costs at the Water Treatment Plant (WTP) and lower raw water pumping expenses. About $691,000 resulted from reduced pumping charges for Nacimiento Reservoir supplies, as the pipeline was offline for repairs under Yerba Buena Creek. Electricity costs decreased by $378,000 due to more efficient use of the Tesla Ba Ʃery, a switch from PG&E to 3CE rates, and strategic adjustments to equipment operaƟon Ɵmes. AddiƟonally, $359,000 in savings came from reduced chemical usage for water treatment. Weather condiƟons were stable, resulƟng in fewer treatment adjustments, and reliance on less corrosive water sources further lowered chemical demand. Some of these savings will be considered in future ﬁnancial plans and supplemental budget amendments, while others were one-Ɵme and temporary due to external condiƟons. Debt Service – The debt service category represents debt the Water Fund holds for ﬁnancing capital projects. There is a $106,000 savings in the debt interest account due to amorƟzaƟon of bond premiums, discounts, and deferred amounts on refunding. Staff will correct this variance in future budgets. Transfers Out – The transfers category represents transfers from the Water Fund to the General Fund for contribuƟons to internal services and auxiliary services such as Human Resources, City Clerk, InformaƟon Technology, Public Works, etc. This is paid for in arrears and calculated based on the previous ﬁscal year’s actuals. In FY 2024-25, approximately $2.94 million was transferred out of the Water Fund. There is no variance in this cost category. Page 137 of 349 Utilities Water Fund Revenues Water Fund revenues exceeded budget by approximately $6.97 million, driven by higher impact fee collecƟons, stronger investment performance, unbudgeted grant revenues, and increased water consumpƟon. About $1.8 million came from development-related impact fees, which remain difficult to forecast due to ﬂuctuaƟng project schedules but are essenƟal for funding growth-related capital improvements. Another $1.9 million was generated through elevated investment returns and fair market value adjustments as higher interest rates boosted earnings on pooled cash balances. Unbudgeted grants contributed roughly $1.4 million, primarily from ProposiƟon 1 and CalOES programs that were awarded in prior years but realized in FY 2024-25. Increased water usage, largely from greater landscape irrigaƟon during a drier year, added an esƟmated $1.4 million in addiƟonal revenue. The table below provides a year-over-year comparison of precipitaƟon totals, highlighƟng the drier condiƟons that contributed to increased irrigaƟon demand and corresponding revenue growth. Fiscal Year Precipitation (in inches) FY 2020-21 11.58 FY 2021-22 9.89 FY 2022-23 52.78 FY 2023-24 24.67 FY 2024-25 14.52 ConservaƟve budgeƟng in these areas is intenƟonal, as revenues Ɵed to development, investment performance, and weather are inherently difficult to predict—underperformance could otherwise necessitate mid-cycle rate increases. Conversely, overperformance in these categories helps offset or delay future rate adjustments, supporƟng long-term rate stability. Sewer Fund Sewer Fund Expenditures Staffing – Staffing includes all salaries and beneﬁts related to Sewer Division operaƟons. Variances were primarily driven by vacancies in several posiƟons, including: FY 2023-24 FY 2024-25 FY 2025-26 Water Fund Actual Budget Actual Variance % Budget Water Sales & Base Charges 26,356,629 28,428,148 29,332,417 904,269 3% 30,057,771 Other Revenue 2,110,028 228,000 4,921,710 4,693,710 2059% 256,000 Grants and Subventions 752,267 - 1,374,625 1,374,625 - 4,095,680 Total Revenue 29,218,924 28,656,148 35,628,752 6,972,604 24% 34,409,451 `FY 2023-24 FY 2024-25 FY 2025-26 Sewer Expenditures Actual Budget Actual Funds Available %Budget Staffing 5,467,874$ 6,207,344$ 5,656,187$ 551,158$ 9% 6,042,596$ Contract Services 1,256,919 1,319,837 1,258,369 61,467 5% 1,790,967 Other Operating Expenditures 2,647,401 2,818,964 2,680,902 138,062 5% 3,037,743 Debt Service 1,386,962 7,005,933$ 6,825,920$ 180,013 3% 7,098,607 Transfers Out 3,104,155 3,290,250$ 3,290,250$ - 0% 3,140,155 Total 13,863,311$ 20,642,328$ 19,711,628$ 930,700$ 5% 21,110,069$ Page 138 of 349 Utilities 1. UƟliƟes Business Manager 2. Supervising UƟlity Billing Assistant 3. UƟliƟes Senior Engineer 4. AdministraƟve Assistant 5. WRRF Operator 6. Environmental Compliance Inspector Some of these posiƟons were vacant for only a porƟon of the year, but collecƟvely they contributed to lower-than-budgeted staffing costs. Contract Services – Some of the acƟviƟes related to contract services include permiƫng fees and regulatory sampling, meter reading services, rouƟne asset maintenance, and various studies. A total underspend of $55,000 is aƩributed to the deferral of key planning efforts. About $27,000 resulted from postponing the department-wide strategic plan unƟl compleƟon of the WRRF upgrade, ensuring the plan reﬂects post-project operaƟonal needs. Another $28,000 is Ɵed to delaying the rate structure analysis due to limited staff capacity. While a rate study update recalculaƟng rates within the current structure was completed, the more comprehensive structure analysis—potenƟally redesigning how rates are applied— requires addiƟonal consultant and staff effort. This work is scheduled to begin in Winter FY 2025-26. The remaining underspend reﬂects modest savings in rouƟne asset maintenance, regulatory sampling, and other miscellaneous contract services. Other OperaƟng Expenditures – Some of the acƟviƟes related to other operaƟng expenditures include electric uƟliƟes, construcƟon materials and supplies, and chemicals. A total underspend of $138,000 is primarily due to reduced training, outreach, and variable operaƟng expenses. About $48,000 resulted from lower educaƟon and training costs, inﬂuenced by the City’s April 18, 2025 travel chill and limited staff availability during the WRRF upgrade. Another $30,000 came from reduced adverƟsing and public outreach, a category that remains consistently underused and may be downsized in the next Financial Plan in favor of in-house communicaƟon efforts. The remaining $60,000 reﬂects lower spending on postage, equipment maintenance and supplies, and credit card merchant fees—accounts that ﬂuctuate based on customer billing preferences, maintenance needs, and special noƟﬁcaƟons. CollecƟvely, these savings represent Ɵming and operaƟonal adjustments rather than ongoing budget reducƟons. Debt Service – The debt service category represents debt the Sewer Fund holds for ﬁnancing capital projects. There is a $180,000 savings in the debt interest account due to amorƟzaƟon of bond premiums, discounts, and deferred amounts on refunding. Transfers Out – The transfers category represents transfers from the Sewer Fund to the General Fund for contribuƟons to internal services and auxiliary services such as Human Resources, City Clerk, InformaƟon Technology, Public Works, etc. This is paid for in arrears and calculated based on the previous ﬁscal year’s actuals. In FY 2024-25, approximately $3.29 million was transferred out of the Sewer Fund. There is no variance in this cost category. Sewer Fund Revenues Page 139 of 349 Utilities Sewer Fund revenues exceeded budget by approximately $5.2 million, largely due to higher investment earnings, impact fees, unbudgeted grants, and increased Sales to Cal Poly. The largest contributor was $3.1 million in addiƟonal investment income, driven by elevated interest rates that produced stronger returns on pooled cash balances, along with fair market value adjustments reﬂecƟng unrealized gains. Another $343,000 came from higher development impact fees, which remain difficult to forecast given the variability of project schedules but are essenƟal for funding growth-related capital improvements. Unbudgeted grants added $530,000, primarily from ProposiƟon 1 and CalOES programs realized in FY 2024-25 aŌer prior-year delays. Sales to Cal Poly generated an addiƟonal $304,000 as wastewater volumes exceeded projecƟons; however, this revenue will decline once Cal Poly’s new Water ReclamaƟon Facility comes online. ConservaƟve budgeƟng in these areas is intenƟonal, as revenues Ɵed to investment returns and development are inherently unpredictable—underperformance could necessitate mid-cycle rate increases. Conversely, overperformance helps offset or delay future rate adjustments, supporƟng long- term ﬁnancial stability and ratepayer protecƟon. Performance Measures Objective Measure 2024-25 Target 2024-25 Actual Maintain and manage infrastructure, assets, and facilities responsibly and transparently Sanitary Sewer Overflows per 100 miles of sewer main 0 .71 Breaks/leaks per 100 miles of water main <13.4 6.9 Provide the Community with High Quality and Reliable Service Recycled Water Delivered (Acre Feet) 237 353 Minimize Customer Shut-Off for Nonpayment <450 401 Performance Measures Variance ExplanaƟons: The variance in Sanitary Sewer Overﬂows (SSOs) per 100 miles of sewer main is due to aged infrastructure with condiƟons that are exacerbated by climate change and consumer habits Ɵed to restaurant acƟvity. While the target remains zero, staff are opƟmisƟc that a recently adopted grease control ordinance, compleƟon of planned Capital Improvement Plan (CIP) projects, ongoing success of the City’s private sewer lateral programs, and expansion of remote monitoring systems will conƟnue the trend of reducing SSOs that will maintain this Key Performance Indicator (KPI) near zero. Since the City iniƟated its long-range infrastructure renewal strategy in 2015, sanitary sewer overﬂows have steadily declined—from a peak of 35 in 2021 to just one in 2025—reﬂecƟng the cumulaƟve impact of sustained public and private infrastructure improvements. 1 There was one sanitary sewer overflow from the City’s 148 miles of publicly owned system. This is down from a peak of 35 spill events in 2021. FY 2023-24 FY 2024-25 FY 2025-26 Sewer Fund Actual Budget Actual Variance % Budget Service Charges 20,204,743 20,596,900 21,144,366 547,466 3% 21,558,825 Other Revenue 2,779,496 202,000 4,301,762 4,099,762 2030% 210,000 Grants and Subventions 915,997 - 530,085 530,085 - - Total Revenue 23,900,236 20,798,900 26,002,176 5,203,276 25% 21,768,825 Page 140 of 349 Utilities Accomplishments & Challenges In FY 2024-25, the UƟliƟes Department delivered several major accomplishments while managing signiﬁcant operaƟonal challenges. Key achievements included updaƟng the City’s solid waste franchise agreements and rate-seƫng methodology, compleƟng mulƟple capital projects such as the WRRF upgrade, Johnson–Iris to Bishop Pipeline Replacement, and TTHM Byproduct ReducƟon, and advancing wastewater collecƟon system improvements. Page 141 of 349 Parks and Recreation Parks and RecreaƟon Department A Year in Review The Parks and RecreaƟon Department conƟnued to expand recreaƟon opportuniƟes and strengthen community connecƟons across all divisions. The FaciliƟes Division maintained high-use spaces and completed mulƟple upgrades, including new furnishings and improved signage, while addressing challenges with decreased post-pandemic event rentals and limited ﬁeld inventory. Youth Services provided daily care to over 600 children at ﬁve different campuses and expanded Friday and summer programming through school district partnerships, though construcƟon at school sites limited capacity growth. Community Services strengthened community engagement through well-aƩended events, expanded senior programming, and successful partnerships for youth and adult sports leagues. The Volunteer Program saw major growth with new iniƟaƟves such as Adopt-a-Pathway and increased park adopƟons. The Public Art Program conƟnued to thrive with new installaƟons, workshops, and community collaboraƟons, while planning future exhibits in coordinaƟon with SLOMA. Ranger Service improved open space safety and accessibility through new trail projects, bridge replacements, and ongoing fuel management efforts. AquaƟcs achieved record parƟcipaƟon through expanded swim lessons and community events while maintaining consistent staffing and operaƟonal hours. The Golf Division exceeded revenue goals and supported local programs despite challenges with facility repairs and infrastructure needs. In FY 2024–25, Parks & RecreaƟon delivered strong ﬁnancial performance in key areas while addressing operaƟonal challenges and implemenƟng program improvements to enhance community engagement. Youth Services revenue grew from expanded summer childcare in partnership with the school district and expansion of school year childcare slots. AquaƟcs and Golf revenues exceeded budget, driven by higher parƟcipaƟon in swim instrucƟon, mulƟ-day swim passes, improved golf course condiƟons, and expanded golf lessons, though golf revenue remains weather dependent. Community Services revenue fell short of budget expectaƟons due to stagnant contract class enrollment and unrealized Adult Sports league addiƟons, although there was increased aƩendance at no-cost interacƟve community building events. The Community Services Contract Classes realized savings from reduced enrollment in contract classes interest, though adult, senior, and low-cost classes conƟnue to see strong parƟcipaƟon despite limited revenue generaƟon. Ranger Services improved encampment oversight and clean-up management resulƟng in lower expenditures within the Contract Services. FaciliƟes revenue exceeded projecƟons due to consistent fee collecƟons, increased special event permits, and updated and new fees implemented in Fall 2024. Other Revenue remained above budget, including CAPSLO sƟpends, which are not guaranteed in future years. Variance Analysis `FY 2023-24 FY 2024-25 FY 2025-26 Parks & Recreation Actual Budget Actual Funds Available %Budget Staffing 4,548,190$ 5,180,460$ 5,099,308$ 81,152$ 2% 5,248,711$ Contract Services 302,047 391,716 314,187 77,529 20% 360,391 Other Operating Expenditures 564,011 611,608 584,324 27,284 4% 622,409 Total 5,414,249$ 6,183,784$ 5,997,819$ 185,965$ 3% 6,231,512$ Page 142 of 349 Parks and Recreation Contract Services – Savings in Contract Services are primarily the result of reduced enrollment in contract class offerings and improved management of encampments and clean-up acƟviƟes. While parƟcipaƟon remains strongest in adult, senior, and low-cost classes, these offerings generate limited revenue due to the cost split with instructors. Staff will conƟnue efforts to increase overall public engagement in FY 2025– 26 and will evaluate program prioriƟes if parƟcipaƟon in other classes does not improve. AddiƟonally, the Ranger Service has increased its enforcement presence in open space, which, in combinaƟon with fuel reducƟon and management efforts, has contributed to a reducƟon in encampments. While the occurrence of future encampments cannot be predicted, it remains essenƟal to maintain sufficient budget capacity to respond effecƟvely. Revenue FaciliƟes revenue exceeded budget due to a combinaƟon of consistent collecƟon of Outdoor Rental and Use Fees, the issuance of ﬁŌeen addiƟonal Special Event applicaƟons and permits than the prior ﬁscal FY 2023-24 FY 2024-25 FY 2025-26 Parks & Rec Actual Budget Actual Variance % Budget Facilities Library Rental 3,400 6,816 8,692 1,876 28% 5,000 Indoor Rental & Use Fees 56,476 65,100 43,735 (21,365) -33% 65,000 Outdoor Rental & Use Fees 185,475 140,253 208,099 67,846 48% 147,000 Special Events Insurance 12,333 12,000 9,161 (2,839) -24% 12,500 Special Event Fees - App/Permit 51,394 30,000 53,431 23,431 78% 38,000 Youth Services Youth Services Childcare 753,972 687,416 846,098 158,682 23% 727,500 Youth Services Camps 282,733 163,202 368,452 205,250 126% 292,000 Community Services Adult Athletic Fees 135,895 145,000 118,568 (26,432) -18% 140,000 Youth Athletic Fees 112,232 100,000 129,050 29,050 29% 115,000 Instruction Fees 66,904 96,000 51,819 (44,181) -46% 70,000 Special Events - City Sponsored 4,037 4,000 6,261 2,261 57% 6,663 Aquatics Aquatics Daily Use Fees 105,403 105,000 95,680 (9,320) -9% 105,000 Swim Instruction Fees 114,205 105,000 125,064 20,064 19% 115,000 Multi Day Swim Passes 72,597 71,000 85,819 14,819 21% 75,000 Therapy Pool Fees 9,250 10,000 11,112 1,112 11% 10,500 Golf Driving Range Fees 13,672 13,000 18,914 5,914 45% 14,500 Golf Greens Fees 225,236 210,000 284,335 74,335 35% 230,000 Golf Lesson Fees 782 1,000 2,776 1,776 178% 1,000 Golf Rental Fees 6,406 6,000 8,839 2,839 47% 7,000 Golf Cart Rentals 25,139 25,000 41,876 16,876 68% 27,500 Other Revenue Sales Taxable 10,804 10,000 15,605 5,605 56% 12,000 Junior Ranger Camps 8,415 8,000 6,990 (1,010) -13% 9,120 Other Parks & Recreation Revenue 158,846 46,840 101,053 54,213 116% 55,000 Disability Insurance Reimbursement - 19,100 - (19,100) -100% - Total Revenue 2,415,605 2,079,727 2,641,429 561,702 27% 2,280,283 Page 143 of 349 Parks and Recreation year, in addiƟon to adopƟon of new fees that were implemented in Fall 2024. Staff have maintained Ɵmely collecƟon of permit and facility fee balances, an area that had historically been inconsistent. While it was iniƟally anƟcipated that this revenue overage would not recur following the collecƟon of outstanding balances in FY 2023–24, updated projecƟons indicate conƟnued growth in Outdoor Rental and Use Fees, and the 2025-27 Financial Plan has been adjusted accordingly. In addiƟon, community demand for special events conƟnues to increase, resulƟng in more applicaƟons and permits being issued, a trend expected to conƟnue in FY 2025-26. Youth Services revenue exceeded budget due to expanded summer childcare offerings provided in partnership with the School District. The School District funded care for an addiƟonal 250+ children during the summer session to supplement the summer school program, with payments made directly to support the staffing by the City. This expansion required Youth Services to exceed its Temporary Staffing budget to support the program, while receiving ﬁnancial coverage through the agreement with the School District. School year childcare revenue also increased as the division added new childcare slots in response to high community demand and in support of the Council’s adopted Major City Goal related to Economic Resiliency, Cultural Vitality and Fiscal Sustainability. The District has already begun discussions regarding these conƟnued partnerships into the 2025-2026 and 2026-2027 school years. The division is currently providing an addiƟonal four hours of childcare per day, at each of the ﬁve school sites which will require addiƟonal temporary staff hours, resulƟng in increased revenue. Community Services revenue did not meet budget due to reduced parƟcipaƟon in the City’s contract class offerings (charged as "InstrucƟon Fees”) and the anƟcipated addiƟon of an Adult Sports league (indoor basketball) that did not materialize. Adult Sports leagues also experienced lower parƟcipaƟon in soŌball, alongside the unrealized goal of adding two new leagues (basketball and volleyball). While Community Services expanded contract class offerings by adding 15 new classes, enrollment, parƟcularly in adult classes, remained stagnant. For FY 2025-26, staff have adjusted both revenue and expenditure budgets to reﬂect decreased demand. In addiƟon, Adult AthleƟc fees have been revised to align more closely with actual parƟcipaƟon levels, and the assumpƟon of an addiƟonal league has been removed. Youth sports offerings surpassed revenue projecƟons with the expansion of Summer Sports camps, year-round sports clinics and expansion of rosters for youth basketball and futsal teams. AquaƟcs revenue exceeded budget as mulƟ-day swim passes conƟnued to grow in popularity and the expanded swim instrucƟon classes generated revenue above expectaƟons. This increase was driven by a greater number of class offerings during peak seasons, with program prioriƟes shiŌing from year-round scheduling to a concentrated focus on the spring and summer months. Looking ahead, staff project that mulƟ-day swim passes will conƟnue to outpace daily passes, and swim instrucƟon is expected to remain in high demand. The FY 2025–26 budget has been adjusted to reﬂect these trends. Golf revenue exceeded budget due to consistent hours of operaƟon, fewer facility closures due to weather events, and upgrades to both the course and driving range. This year, consistent staffing and daily operaƟons with the new Golf Coordinator contributed to increased parƟcipaƟon in tee Ɵmes and Golf Lessons. While revenue growth reﬂects these improvements, golf revenue remains highly dependent on weather condiƟons, which are unpredictable. For FY 2025–26, staff have adjusted the budget to reﬂect expected revenue while conƟnuing to monitor operaƟonal factors and parƟcipaƟon trends. Other Revenue includes deferred revenue for CAPSLO sƟpends, formally known as Cost of Care Plus Rate Payments, which were established under Senate Bill 140. These sƟpends are funded by the California Page 144 of 349 Parks and Recreation Department of Social Services and administered locally through CAPSLO to support Youth Services in providing care for children enrolled in state-subsidized programs. Payments are calculated based on the number of eligible children served and the regional rate assigned to the provider’s county. Revenue from these sƟpends has conƟnued to be over budget because contribuƟons vary and receipt of future payments beyond June 2025 are not guaranteed, so they not officially budgeted. Although funding will conƟnue to roll over as deferred revenue, Parks & RecreaƟon cannot guarantee sƟpend funds regularly from CAPSLO and should not be anƟcipated revenue going forward. Performance Measures Parks and RecreaƟon Performance Measures Objective Measure 2024-25 Target 2024-25 Actual Provide inclusive, accessible programming that serves the whole community. Strategic Goal: Programming is Directed to Diverse Users (P&R Strategic Plan Goal), DEI and Economic Vitality MCG’s # of Department Community Events 25 25 # of non-profit permitted Facility Uses 120 115 # of program registrations 4,500 6,659 # of program offerings 450 491 # of childcare spots filled/offered 1,500/1,500 2,594/2,594 # of children receiving subsidy 60 CAPSLO 50 City Scholarships 69 CAPSLO 38 City Scholarships In Coordination with Public Works, engage the public to prioritize new and revitalized Recreational Amenities Strategic Goal: Expand Parks & Facilities (P&R Strategic Plan Goal), MCG Economic Stability # of public outreach meetings 6 6 # of updated or new parks and amenities in process 5 5 Creates and fosters a sense of community through citizen involvement Strategic Goal: Maximize Community Resources & Collaborations (P&R Strategic Plan Goal) # of volunteers/total volunteer hours 480/5,000hrs 753/7,173hrs # of temporary Public Art or Cultural Art Events 5 5 Leverage technology to engage the community and promote program offerings Strategic Goal: Programming is Directed to Diverse Users (P&R Strategic Plan Goal) # of Instagram followers 8,700 8,970 # of Facebook followers 5,800 5,900 Page 145 of 349 Parks and Recreation Open Space Preservation and Enhancement Strategic Goal: Nurture Open Space (P&R Strategic Plan Goal), Climate Action MGC # of miles of Open Space trails maintained 68 68.5 # of staff hours dedicated to fuel reduction 4,000 4,000 # of encampment site clean-ups removed from Open Spaces 120 18 # of Non-Proﬁt PermiƩed Facility Uses: Non-proﬁt use of City faciliƟes was slightly below target due to reduced interest compared to prior years and improved accuracy in data tracking. Staff will conƟnue markeƟng discounted facility use rates to non-proﬁts, with future uƟlizaƟon dependent on economic condiƟons and community demand. # of Program RegistraƟons: Program registraƟons increased as Community Services expanded offerings, with a focus on youth, adult, senior, and low-cost programming. Youth sports programming also remain a strong contributor, with steady community parƟcipaƟon supporƟng overall registraƟon growth. RegistraƟons are expected to conƟnue increasing in future years. # of Program Offerings: General program offerings expanded, which include contract class programs offered. The Coordinator developed new partnerships and new offerings within the Contract Class areas. Despite the increased offerings, enrollment into the contract class programs remained low, with the excepƟon of a few tried and true classes. # of Childcare Spots Filled/Offered: Increased aƩendance resulted from the partnership with the School District providing more space and support to an addiƟonal 250 youth on Fridays, funded through the District. Because of construcƟon at each school site, the ability to increase aƩendance in the “regular” aŌer school program was stagnated. Over the past several years, summer camp enrollment has steadily increased from 130 children per week to over 600 per week to meet both of our community needs, as well as the District’s request for increased care during the summer months. The addiƟonal summer district classes were funded by the District. Because of the increased aƩendance, both revenue and supplemental staff expenses have increased. # of Children Receiving Subsidy: In FY 2024-25, 38 scholarships were awarded, totaling $33,500 in available funding. Of that amount, $19,051 was uƟlized by awarded families to offset registraƟon fees, reﬂecƟng underuƟlizaƟon of the funds. The scholarship awards are limited to Youth Services and AquaƟcs youth programming, which has limited the use of the funds by recipients. To address this, staff plan to expand the range of programs eligible for scholarship use and conƟnue targeted outreach and educaƟon to ensure families are aware of opportuniƟes and understand how to access the funding. These strategies are expected to increase uƟlizaƟon in FY 2025-26 and beƩer align awarded funds with actual program parƟcipaƟon. This is in addiƟon to the average 60 children receiving subsidized care through CAPSLO, which is an addiƟonal administraƟve program managed by the Division. # of Recurring Volunteers/Total Volunteer Hours: In its second full year as a City program, the volunteer coordinator increased the total number of registered volunteers in Engage SLO to 753, an increase of 638 over the previous year. Volunteers contributed a total of 7,173 hours, with a monthly average of 70 recurring volunteers. Using the standard local rate of Volunteer Value of $37.32/hour, this represents an esƟmated $268,000 in value to the City. This was the ﬁrst full year of using the Engage SLO tracking system, Page 146 of 349 Parks and Recreation and total volunteer numbers may have been iniƟally underesƟmated because there was not a previous system in place. # of Encampment Site Clean-Ups Removed from Open Spaces: Staff cleaned and removed approximately 18 encampments, totaling over 6,100 pounds of trash in FY 2024-25. The signiﬁcant reducƟon in encampment clean-ups can be aƩributed to staff dedicaƟon to management efforts, as well as increased enforcement presence in open space. Staff anƟcipate that the number of encampment clean-ups will remain similar in FY 2025-26; however, given the unpredictable nature of encampment acƟvity, there is uncertainty regarding whether this trend can be sustained. Staff will conƟnue to prioriƟze proacƟve management, enforcement, and coordinaƟon to minimize impacts to open spaces, as well as have adjusted future budget expenditures to meet the anƟcipated downward trend of clean-up acƟviƟes. Accomplishments & Challenges FaciliƟes The FaciliƟes Division accomplishments included the purchase of new tables, chairs, and carts to enhanced faciliƟes at the Jack House, Mission Plaza, and Library Community Room. Staff met and exceeded goals in supporƟng the numerous community sports group reservaƟons at all City managed ﬁelds throughout the year. Challenges include the indoor reservaƟons as they were considered in-house or fees comped due to uƟlizaƟon from City sponsored groups, resulƟng in reduced to no fees collected, as well as the slower return of outside organizaƟons’ outreach for facility use to pre-pandemic levels, leading to decreased public usage. Jack House Gardens bookings were impacted due to the roof construcƟon project in spring 2025. Youth Services Youth Services expanded programs providing daily care to over 600 youth per day over the academic year, including the District expanding capacity for an addiƟonal 250 youth on Fridays, funded through the District. Summer camp enrollment increased from 130 children per week to over 600 per week to meet both the community demands, as well as the District’s request for increased care during the summer months supporƟng summer school schedules (funded by the District). Because of the increased aƩendance, both revenue and supplemental staff expenses have increased. AddiƟonally, the division- maintained state licensing compliance and passed all annual non-scheduled licensing site checks. Due to construcƟon by the District at each school site, the ability to increase aƩendance in the tradiƟonal aŌer school program was stagnated due to facility capacity. Community Services The Community Services Division expanded Senior programming with the introducƟon of new acƟviƟes and events, including Senior walkers and hikers, mulƟ-generaƟonal weekly trivia, holiday events, technology classes, and Around-the-Town excursions. Challenges were idenƟﬁed within the Contract Classes being offered and not meeƟng community needs and staff are assessing this program for future offerings. Volunteer Program Page 147 of 349 Parks and Recreation The Citywide Volunteer Program expanded opportuniƟes with the Johnson Ranch Open Space restoraƟon and storytellers, the new Adopt-a-Pathway iniƟaƟve, Whale Rock trail support, mulƟple administraƟve support posiƟons throughout the City departments, Adopt-a-Storm drain iniƟaƟve, public art maintenance days, and the Adopt-a-Park program has grown from ﬁve (5) park adopƟons to 11 parks. The Volunteer Coordinator worked with the Jack House Docent team to create an updated Standard OperaƟng Procedures manual for future docents. Public Art Program The City’s Public Art program increased partnership with the SLO County Arts producing the ﬁve (5) free art-related lectures in the Art Talk Series. Other collaboraƟons included summer art classes with the school district and City’s childcare programs and Senior program tours. The Program revitalized the Box Art Program in preparaƟon for the upcoming 15th anniversary, with over 20 new art installaƟons of uƟlity boxes, including a box art support workshop to make the process more accessible, and mulƟple staff led box-art tours for the community. The public art coordinator managed the installaƟon of the In the Shadow mural and ironwork art fence project under the Chorro Street underpass. In support of the Community Partnership Agreement with the SLO Museum of Art (SLOMA), the installaƟon of the temporary art piece for Garden Street Alley (fall 2024), the temporary sculpture at Mission Plaza lawn was decommissioned (spring 2025) and replacement scheduled for winter 2025, and the new sculpture (“ShiŌ ”) installaƟon by Warren Hamrick is planned for San Luis Ranch in late 2025. Ranger Service The Ranger Service expanded fuel management in the Wildland Urban Interface (WUI). New trail projects were completed within the Righeƫ Hill property, concluding with a grand opening in May 2025 of the Righeƫ Hill Lower Loop Trail and addiƟons of two mulƟ-use trails. Two new bridges were rebuilt within the Irish Hills network, along with a new switchback trail implementaƟon at Bowden Ranch (Lizzie Street trailhead) which will conƟnue into the new ﬁnancial plan. Other accomplishments include compleƟng Phase 2 of the Laguna Lake Bike Park of the new Jump Lines (beginner and advanced). The bike park now includes the Mountain Bike Loop, Kids Pump Track, and the dual Jump Lines. AquaƟcs The AquaƟc Division achieved stronger staffing retenƟon to enable consistent operaƟonal hours surpassing pre-pandemic schedules. Staff increased swim lesson offerings, including group and baby & me sessions, expanding from 195 to 268 lessons to provide more opportuniƟes for the community and developed an award winning online Water Safety Hub with community-based safety videos and Ɵps. Expansion in partnership with community groups to meet diversity and inclusion goals resulted in the hosƟng of Water Play Day with the Central Coast AuƟsm Spectrum Center, Splash Bash with SLO County Friday Night Live for middle school teens, and Swim with Pride with SLO GALA Pride and Diversity Center to celebrate Pride Month. The Super Rec Saturdays program averaged nearly 700 aƩendees at each event, with the ﬁnal event aƩendance exceeding 800 parƟcipants. Staff recruitment during the tradiƟonal school year remains a challenge to support the 7-day per week operaƟons, City staff have adjusted pool availability to conƟnue to meet daily operaƟons and provide aquaƟc opportuniƟes throughout the year. Golf Page 148 of 349 Parks and Recreation The Golf Division maintained and expanded community play, including during the typically slower post- Thanksgiving and winter period, exceeding forecasted revenue expectaƟons and aƩendance. Staff expanded support for local community groups by hosƟng Cal Poly Kinesiology courses, Laguna Middle School PE courses, SLO High School courses, Special Olympics and free First Tee youth lessons. Challenges include infrastructure related to the bridge replacement project scheduled for Summer 2026, ongoing irrigaƟon leaks due to an aging system, and the Pro Shop remaining out of service while staff work with a consultant on its rehabilitaƟon project set for 2026. Page 149 of 349 Police Police A Year in Review During FY 2024-25, the department focused on ﬁlling vacancies in patrol, records, and dispatch. Staff also conƟnued to work on the Five-Year Strategic Plan which officially started in early 2024; more than half of the plan objecƟves are over 50% completed. The department also worked to expand the license plate recogniƟon camera system to addiƟonal locaƟons throughout the city. The department ended FY 2024-25 with a savings of $130,719, which is approximately 1% of the department’s total budget. This savings was aƩributed to contract services, which is explained in more detail below. OverƟme expenditures for the year totaled $1,726,389; which is a decrease of 11.6% from FY 2023-24. Due to overƟme costs, the department did not realize any salary savings despite having some vacancies during the year. Variance Analysis Police Expenditures Staffing: The table above indicates that the department ended the year without any salary savings; however, due to impacts of the Police Officer’s AssociaƟon Memorandum of Understanding adopted in early July 2024, there were increases to staffing costs. The department was able to absorb some of the increase but also used approximately $116,694 from the City’s MOU Adjustments/Staffing ConƟngency account to cover the remaining overage. The table below reﬂects overƟme hours worked and overƟme expenditures by ﬁscal year. For FY 2024-25, overƟme hours totaled 18,555 (a decrease of 17% from FY 2023-24) which equated to $1,726,389 in expenditures. Overtime Hours & Expenditures by FY 2021-22 2022-23 2023-24 2024-25 Paid OT Hours 16,843 20,838 22,266 18,555 OT Budget $708,187 $718,069 $858,334 $912,257 Expended $1,307,379 $1,569,470 $1,952,924 $1,726,389 Contract Services: The department ended the year with a savings of 15% in Contract Services. The majority of savings was realized in the AdministraƟon cost center due to the following: the annual debt service payment to County Animal Services (shared cost for the construcƟon of the new animal shelter) was less than anƟcipated due to the County using available funds from the project to pay down the debt. This FY 2023-24 FY 2024-25 FY 2025-26 Police Actual Budget Actual Funds Available %Budget Staffing 21,641,566$ 23,073,521$ 23,073,521$ 0$ 0% 23,791,744$ Contract Services 868,301 1,090,364 930,100 160,265 15% 1,173,578 Other Operating Expenditures 723,312 623,951 653,497 (29,546) -5% 634,931 Total 23,233,179$ 24,787,837$ 24,657,118$ 130,719$ 1% 25,600,253$ Page 150 of 349 Police resulted in each city paying less for FY 2024-25. AddiƟonally, the department did not use funds related to janitorial costs for the 1106 Walnut building since staff was unable to move into the building due to the tenant improvement construcƟon schedule. These savings are not expected to recur. Police Revenue Overall, police revenue exceeded projecƟons by 5%. Although some accounts realized less revenue than anƟcipated, overages in other accounts helped offset this. AdministraƟve CitaƟon revenue was higher than projected by about $67,000; as shown in the chart below, the quanƟty of AdministraƟve CitaƟons increased from the previous year by about 9%. However, the projecƟon was too low based on the previous year’s actuals so staff will adjust the projecƟon in future budgets. Alarm revenue was lower than anƟcipated due to less alarm permit renewals compared to the previous year. Alarm permit renewals are valid for a 12-month period, and the renewal schedules do not occur at FY 2023-24 FY 2024-25 FY 2025-26 Police Actual Budget Actual Variance % Budget Police Department Permits 6,875 4,500 8,313 3,813 85% 4,500 Tobacco Permits 32,685 32,685 34,480 1,795 5% 33,000 Alarm Permits - Contract (Police) 246,139 235,000 167,588 (67,412) -29% 150,000 Police Issued Parking Fines 77,202 50,000 87,651 37,651 75% 50,000 Administrative Citations - Safety 281,074 163,000 230,345 67,345 41% 150,000 Accident Reports 4,105 3,470 7,354 3,884 112% 4,000 Collision Investigation 1,128 1,500 347 (1,153) -77% 1,500 Witness Fees 2,750 1,638 3,025 1,387 85% 2,000 Tow Release Fees 20,858 16,000 21,751 5,751 36% 14,000 Second Response Fees 1,581 1,500 415 (1,085) -72% 1,200 DUI Cost Recovery 73,098 60,000 33,198 (26,802) -45% 30,000 Other Police Revenue 274,650 250,000 264,523 14,523 6% 250,000 Total Revenue 1,022,145 819,293 858,990 39,697 5% 690,200 Page 151 of 349 Police the same Ɵme, so the number of renewals each ﬁscal year will vary. AddiƟonally, the number of false alarms decreased by about 3.2% compared to FY 2023-24. DUI Cost Recovery revenue was lower than projected. There was not a signiﬁcant decrease in the number of billings from the prior year, so the decrease was most likely aƩributed to payments not being made. Performance Measures Objective Measure 2024-25 Target 2024-25 Actual Reduce Crime Strategic Goal: Economic Recovery, Department Mission # of total Part I Crime by year.1 2,009 1,568 Provide safe roadways for pedestrians, vehicles, and bicyclists. Strategic Goal: Patrol Objectives, Department Mission # of total traffic collisions.2 Vehicle: 418 Vehicle: 477 Pedestrian: 32 Pedestrian: 29 Bicycle: 30 Bicycle: 47 # of targeted enforcement operations conducted under the Office of Traffic Safety Grant per year DUI Checkpoints: 2 DUI Checkpoints: 3 DUI Saturation Patrols: 28 DUI Saturation Patrols: 30 Traffic Enforcement Operations: 15 Traffic Enforcement Operations:13 Distracted Driving Enforcement: 5 Distracted Driving Enforcement:3 Bicycle & Pedestrian Enforcement: 9 Bicycle & Pedestrian Enforcement: 7 Reduce Homeless related Calls for Service through proactive engagement. Strategic Goal: Economic Recovery, Department Mission, Patrol Objective # calls related to homelessness3 6,200 8,791 # of unique individuals contacted by CAT 310 426 # of Family & Agency Reunification 10 4 # of Local Permanent Housing Referrals 13 2 # of Mental Health/Substance 102 201 1 Part 1 Crimes include: homicide, forcible rape, robbery, aggravated assault, burglary, and motor vehicle theft. Figures shown represent calendar year. 2 Traffic Collision data is shown by calendar year. 3 All stats related to homelessness are based on calendar year. Page 152 of 349 Police Abuse Treatment Referrals Performance Measure Variance ExplanaƟon: The Target Number for Traffic Collisions is an esƟmate typically based on the prior year and actuals will vary depending on events that occur during the year. Unfortunately, actuals were higher than projected for vehicle and bicycle related collisions. Pedestrian collisions were lower than projected. Total Number of Targeted Enforcement OperaƟons the OTS Grant are only reﬂecƟve of October 2024 (when the grant started) to June 30, 2025. The grant period conƟnues unƟl September 30, 2025, so more operaƟons are planned but are not reﬂected in the “actuals” since reporƟng for the ﬁscal year ended on June 30th. As of this Ɵme, it is anƟcipated that department staff will meet all grant objecƟves. The Number of Family & Agency ReuniﬁcaƟons were lower than projected. Other outreach agencies such as Fire’s MCU and CAPSLO have now adopted this type of program, so this service is now shared by other agencies. Total Number of Local Permanent Housing referrals were lower than projected. The Department’s CAT team acts as a facilitator rather than a direct services provider. Their role is to guide and connect individuals to housing resources, but rely on the availability of those resources, including housing inventory, which has been limited. Factors that inﬂuence the complexity of housing referral process include housing availability, eligibility criteria, challenges with engagement, and various other external inﬂuences. Accomplishments & Challenges Department accomplishments during FY 2024-25 included: 1. Five-year Strategic Plan Progress: Department staff conƟnued to work on the objecƟves outlined in the plan. In 2024, staff was able to complete 20 acƟons items. The goals of the plan include: a. Service to the Community b. Community Engagement c. Diversity Equity & Inclusion d. Recruitment & RetenƟon e. Health & Wellness f. Improving Infrastructure, Equipment & Technology 2. Staffing: During FY 2024-25, the department conƟnued to recruit and ﬁll vacancies. Staff developed a more robust recruitment web page, Join SLOPD, that provides more detail about the hiring process and informaƟon about the department. 3. 1106 Walnut Facility: Staff conƟnued to work in tandem with Public Works on the tenant improvement project. The contractor started interior construcƟon and the project is progressing. 4. COPS Hiring Grant: The department was awarded the 2024 COPS Hiring Grant in the amount of $250,000 for a period of three years and Council approved the addiƟon of 2.00 FTE Police Officer posiƟons as a result of grant funding. 5. Community Outreach: The department increased aƩendance at mulƟple community events throughout the year. Staff enjoy these opportuniƟes to speak with the public at these events as it increases communicaƟon and allows the public to interact with officers on a more personal level. Page 153 of 349 Police 6. SPIDR Department RaƟngs: The department uses soŌware (SPIDR) to send automated surveys to individuals that have recently called 911 to collect feedback on their interacƟons with the department. The goal is to gather informaƟon to enhance service, create transparency, and ensure we are providing valuable and posiƟve experiences. 88% of respondents rated their experience with the department as “very saƟsﬁed”. 7. Staff promoƟons: The department promoted four individuals during FY 2024-25 due to reƟrements. PromoƟons are a result of hard work and dedicaƟon, which leads to personal and professional growth. The department is very supporƟve of succession planning and as a result, employee development is also included in the ﬁve-year strategic plan. Challenges included: 1. Staffing: During FY 2024-25, nine employees leŌ the department. Three were related to career reƟrements and some were related to personal life changes. Hiring behind Police Officers and Dispatchers is challenging due to the training process. Two Dispatchers were hired but were unable to pass the training/probaƟonary period which then leads to increased overƟme and employee burn out. Special assignments such as Traffic Safety and Downtown Bikes conƟnued to be understaffed due to vacancies in Patrol. 2. Crime: In 2024, there was an increase in Part 1 Crimes by 3.4%. Part 1 Crimes include Violent and Property Crimes, and it is important to note that Violent Crimes decreased by 14% and Property Crimes increased by 6.8% which nets the 3.4% increase. Page 154 of 349 Fire Fire A Year in Review In FY 2024-25, Fire Department staff made signiﬁcant progress on work efforts impacƟng every program within the department budget and ﬁnished the year $165,483, or 1%, under budget. The apparatus budget was challenged unexpectedly by fuel cost overruns and damage sustained from a vehicle collision with an ambulance which impacted the enƟre Fire Department’s operaƟng expenditure budget. Staffing conƟnues to be a challenge with staff turnover and long-term injury absences. OverƟme to backﬁll vacancies and upstaffing during unplanned emergencies caused Emergency Response overƟme to end $1,242,193 over budget. Vacant posiƟons created salary savings that offset much of the overƟme overage. The department was unable to ﬁll the contract Fire Vehicle Mechanic posiƟon, despite two recruitment efforts, providing savings of $122,804. Overall staffing conƟnues to be a challenge with reƟrements, resignaƟons and long-term injury absences. Variance Analysis Staffing: The department saw reƟrement of a BaƩalion Chief and Fire Captain in the Fall, bringing the total vacancies to four. The department hired four Fireﬁghters in the winter and for a short period was fully staffed. Spring brought the unplanned departure of a Fire Engineer and a Fireﬁghter, increasing the need for backﬁll overƟme. A conƟnuing budget challenge for the Emergency Response division is overƟme. This is driven by the need for backﬁll for standard leave and posiƟon vacancies, which includes mulƟple employees out on long-term injuries. In FY 2024-25 overƟme was overbudget by $1,200,870. However, it was balanced by salary savings within the Emergency Response division of $967,3363 and department-wide salary savings for unﬁlled contract posiƟons of $68,842 for a total of $1,036,205.00. The remaining savings balancing the overƟme overage comes from reduced reƟrement contribuƟons of $84,597 due to vacancies without contribuƟons and also $77,472 in worker’s compensaƟon reimbursement. Under normal circumstances, overƟme ﬂuctuates based on planned and unplanned leave such as illnesses and injuries over the course of the year. For FY 2024-25, the increase from the previous year in overall overƟme expenditures stemmed largely from the following three speciﬁc factors. 1. From September to June, the department leveraged salary savings from the vacant Mobile Crisis Unit (MCU) Fireﬁghter posiƟon to run a pilot program for a two-person Emergency Medical Services (EMS) unit operaƟng out of StaƟon 1. While there was an increase to overƟme to operate the pilot program, it was offset by the salary savings from the vacant posiƟon. Furthermore, the FY 2023-24 FY 2024-25 FY 2025-26 Fire Actual Budget Actual Funds Available %Budget Staffing 14,840,169$ 17,584,642$ 17,542,815$ 41,827$ 0% 16,858,269$ Contract Services 391,409 524,210 377,445 146,765 28% 436,299 Other Operating Expenditures 729,061 841,656 864,765 (23,109) -3% 813,703 Total 15,960,639$ 18,950,508$ 18,785,025$ 165,483$ 1% 18,108,272$ Page 155 of 349 Fire pilot program provided relief for Truck 1 from low-acuity medical responses, such as liŌ-assists and non-emergent medical responses. The reducƟon in responses for Truck 1 reduced overall fuel consumpƟon, accumulaƟon of hours, and wear and tear on Truck 1 prior to the drivetrain replacement. This reducƟon in call volume came at a criƟcal Ɵme, as Truck 1 has exceeded its recommended life expectancy of 10,000 miles and underwent a drivetrain refurbishment, completed enƟrely inhouse by the Supervising Fire Vehicle Mechanic. 2. The Fire Department upstaffed for several events throughout the year, including Cal Poly graduaƟon and St. FraƩy’s Day. Upstaffing of apparatus involves bringing in addiƟonal Fireﬁghters on overƟme to increase daily staffing. 3. A new-hire Academy held over 10 weeks from January to April increased the overall overƟme expenditures for backﬁll and instructor Ɵme. An academy was not held in the previous year contribuƟng to the decrease in overall overƟme hours in FY 2023-24. Overtime Hours and Expenditures 2023 2024 2025 Overtime Budget $1,013,136 $1,137,513 $1,192,293 Total Hours Worked 34,940 25,299 34,209 Total OT Paid $2,128,370 $1,648,463 $2,393,163 Contract Services: The 28% savings in Contract Services came primarily from the Mobile Crisis Unit (MCU). The budget was created when there was a contract with TransiƟons Mental Health Alliance (TMHA) for a case worker to staff the MCU. The MCU posiƟon then transiƟoned to a City posiƟon for increased efficiency, but the budget was not moved to the Staffing category. Other savings came from equipment maintenance speciﬁcally on the Plymovent system that historically needed extensive repairs that was not needed this year. AddiƟonal savings came from the academy not purchasing as much equipment as anƟcipated due to equipment being reused. This trend will not conƟnue as equipment will be aged and purchasing new will be required. Other OperaƟng: Other OperaƟng Expenditures ﬁnished the year over budget by $23,109, primarily due to apparatus services. Engine 3 was involved in a collision caused by a private ambulance, resulƟng in body damage that required repairs at a specialized facility in Northern California. The department paid for the repairs and is waiƟng for the $60,000 reimbursement from the at fault party’s insurance company and anƟcipate reimbursement soon. The Fuel account closed the year $30,000 over budget as a result of escalaƟng fuel costs and increased call numbers. Both factors remain out of the control of the department and the budget has been adjusted for this in FY 2025-26. Public Safety Supplies exceeded budget by $18,004. These supplies are primarily medical supplies placed on apparatus and used when responding to medical calls. While the budget was increased for FY2024-25, inﬂaƟon outpaced expectaƟons for the supplies. Secondly, an increase in the number of medical calls uƟlized more supplies than anƟcipated, driving expenditures above the budget. The department receives $218,452 from San Luis Ambulance in First Responder Fees. The First Responder Fees increase annually by CPI which does not adjust for call volume or changes in protocols that inﬂate costs of response to medical emergencies. Page 156 of 349 Fire Fire Revenue Fire Department Revenue outperformed expectaƟons by 16%. Mutual Aid-. FY 2024-25 was a very acƟve year for California ﬁres, and the department sent many resources to incidents around the state. These assignments bring in revenue in the form of direct salary reimbursements for staff assigned, payment for apparatus used, as well as an administraƟve fee that is paid as a percentage. These fees are based on actual costs incurred by the City ensuring full cost recovery for Ɵme commiƩed. Fire season is unpredictable and therefore revenue is historically excluded from iniƟal budgets. For FY 2024-25, staff processed several administraƟve budget amendments to uƟlize this revenue to offset unbudgeted costs, totaling $1.2 million for overƟme and materials costs incurred on mutual aid assignments. Cal Poly Fire Services: Cal Poly’s contract was renewed aŌer the budget was established, which accounts for the variance. The new contract includes CPI inﬂators plus contribuƟons to apparatus that are necessary to serve the new buildings on the campus. Fire Alarm Permits- Improved internal processes led to accurate tracking of permit revenue showing that revenue is higher than budgeted due to previous incorrect revenue distribuƟon. Staff anƟcipate this trend to conƟnue. Plan Check and InspecƟon- Revenue in this category came in 22% under budget due to the cyclical nature of the construcƟon industry. Previous years saw annual increases in this revenue stream and in FY 2024- 25, the volume of submiƩed plans decreased. Staff turnover and several vacancies also reduced staff capacity to complete plan review, forcing the department to send plans to a contracted vendor for review. R1 InspecƟon Fees – The compleƟon of several new hotels and apartment complexes have increased the number of inspecƟons that Fire completes, resulƟng in a revenue increase of 9% for these inspecƟons. AnƟcipaƟng increases is challenging due to unknown projects and compleƟon dates. CUPA InspecƟon Fees- CUPA fee revenue came in 24% over budget due to unanƟcipated acƟviƟes that generated addiƟonal fees.. The largest of these fees are the underground tank repairs, which required extra inspecƟons and permit reissuance fees. Future revenues may ﬂuctuate unpredictably depending on the number of unanƟcipated projects requiring addiƟonal inspecƟons or permits. FY 2023-24 FY 2024-25 FY 2025-26 Fire Actual Budget Actual Variance % Budget Mutual Aid Reimbursements 535,700 1,157,658 1,444,510 286,853 25% - Medical ER Recovery 220,342 218,452 222,391 3,939 2% 229,513 Cal Poly Fire Services 466,187 361,684 432,337 70,653 20% 463,370 Fire Department Permits 99,606 108,000 102,259 (5,741) -5% 108,000 Fire Alarm Permits 1,853 10,010 23,597 13,587 136% 11,000 Fire Plan Check & Inspection 319,802 350,000 273,969 (76,031) -22% 320,000 Fire Inspection Fees - - 10,615 10,615 0% - R1 Inspection Fees 380,309 351,000 383,231 32,231 9% 380,300 CUPA Inspection Fees 234,027 172,800 214,288 41,488 24% 241,000 Other Fire Department Revenue 9,410 152,861 224,801 71,940 47% 6,000 Total Revenue 2,267,237 2,882,464 3,331,998 449,534 16% 1,759,183 Page 157 of 349 Fire Other Fire Revenue- The Fire Department has been awarded several grants to offset costs of training and equipment. When the reimbursements are issued, they are accounted for in this category. Performance Measures ObjecƟve Metric 2024-25 Target 2024-25 Actual Deliver Timely EffecƟve Response to ensure rapid care and hazard miƟgaƟon Strategic Goal: Other Department ObjecƟves Meet the Total Response Time (TRT) goal of 7 minutes or less to 90% of all lights- and-siren emergencies in the City as deﬁned by the Department’s Master Plan. TRT Includes Call Processing Time, Turnout Time, and Travel Time. 7:00 8:35 Meet the Call Processing Time goal of 1 minute or less to 90% of all lights-and- siren emergencies in the City as part of TRT. 1:00 1:31 Meet the Turnout Time goal of 2 minutes or less to 90% of all lights-and-siren emergencies in the City as part of TRT. 2:00 1:59 Meet the Travel Time goal of 4 minutes or less to 90% of all lights- and-siren emergencies in the City as part of TRT. 4:00 5:51 Provide Ɵmely service to the development community. Strategic Goal: Housing % of Fire Department Development Review acƟviƟes completed within published cycle Ɵmes. 80% 68% While the Fire Department did not meet the response Ɵme performance targets in FY 2024-25, the target remains unchanged in FY 2025-26 due to NaƟonal Fire ProtecƟon AssociaƟon recommended standards. The Fire Department successfully worked to implement process improvements based on data analysis and turnout Ɵmes consistently met the target. Turnout Ɵme is the one metric for which the Fire Department has complete control. FY 2024-25 was the ﬁrst year since the metric was developed where staff met the stated goal. A combinaƟon of staff awareness and process improvement on dispatching contributed to meeƟng the objecƟve. Travel Ɵme is the most difficult Ɵme to improve in the short term as responding units are impacted by road construcƟon, traffic, roadway design changes and expanded response zones due to annexaƟons in Page 158 of 349 Fire the southern end of the City. Some locaƟons outside of the 4-minute response zones which generate a large proporƟon of calls further increase travel Ɵme stats. The Homeless Services Center at 40 Prado Lane is outside the four-minute response zone but is the locaƟon of nearly 400 calls the department responds to annually. This locaƟon and others like it increase overall travel Ɵme outside of performance measure targets. The planned opening of Interim StaƟon 5 with Engine 5 in the fourth quarter of FY 2027-28 will posiƟvely impact the travel Ɵmes as large porƟons of the southern porƟon of the City will fall under the 4-minute response coverage area. Fire PrevenƟon staff encountered challenges largely resulƟng from the departure of the Fire Marshal in November 2024 that reduced staff capacity. A new Fire Marshal joined the City in January. The Fire Marshal is quickly coming up to speed and implemenƟng process improvements to Plan Review turnaround Ɵme and it is anƟcipated that Ɵmes will conƟnue to improve.. Accomplishments & Challenges In AdministraƟon, staff conƟnued to provide planning, direcƟng, and evaluaƟon of all program acƟviƟes through department leadership, public informaƟon, personnel management, ﬁscal and contract management, strategic coordinaƟon, and grant efforts. The Emergency Response division had a busy year serving the City of San Luis Obispo, responding to structure ﬁres, car ﬁres and vehicle accidents. In August 2024 the Bishop Fire burned adjacent to and threatened the City. Crews successfully stopped the ﬁre’s progress, and no structures were lost. The Fire Department sent staff to many of the ﬁres around the state including the ﬁres in southern California in January 2025. Staff applied for and were awarded a grant from the California Office of Traffic Safety to purchase updated extricaƟon tools. The new electric tools replace the previous diesel-powered tools in alignment with a Major City Goal. These new tools are also smaller and more powerful for quicker rescue of crash vicƟms resulƟng in beƩer paƟent outcomes. CalFire released updated Fire Hazard Severity Zone maps in March and the number of homes in Fire Hazard Severity Zones increased from 35 parcels to well over 9,000 parcels. The Fire Marshal has worked in conjuncƟon with other City departments to have the updated maps adopted and conƟnues to work on updaƟng City codes in alliance with the maps. The department completed 19,620 hours of training in FY 2024-25. Four Fireﬁghters completed grant funded paramedic school and are now working as licensed paramedics at no cost to the City. The Mobile Crisis Unit (MCU) conƟnued outreach to the unhoused community and was able to complete nearly 100 reuniﬁcaƟons. The Community Resources Services Specialist posiƟon began the year vacant but was ﬁlled in early fall. Shortly aŌer, an agreement with the County was ﬁnalized and a Licensed Psychiatric Tech (LPT) joined the MCU team. The LPT posiƟon has fundamentally changed the posture of the MCU in a posiƟve manner. With the LPT onboard, the relaƟonship with County Behavioral Health has become far more effecƟve, improving overall efficiency and integraƟon with behavioral health resources. Together with a temporary intern, they conƟnue to make contact with unhoused and other at-risk community members needing services. Page 159 of 349 Fire The Emergency Manager posiƟon was ﬁlled in February 2025 aŌer a yearlong vacancy, and has strengthened coordinaƟon with the Fire Marshal on public outreach for vegetaƟon management, defensible space, home hardening, the FireWise Neighborhood program, and AlertSLO public noƟﬁcaƟons. AddiƟonally, the Emergency Manager has collaborated with a mulƟple departments on a variety of projects including the Office of Sustainability to apply for grant funding to protect criƟcal water and IT infrastructure; with the Community Development Department to adopt the Local Hazard MiƟgaƟon Plan, with the Firesafe Council to advance citywide evacuaƟon modeling. Page 160 of 349 Other Funds Special Revenue & Other Funds These funds include Community FaciliƟes Districts, Business Improvement Districts, and ConservaƟon Funds established to segregate special purpose money to ensure that it is spent for its intended purpose. Year-end results for each fund are presented below. Avila Ranch CFD No. 2017-1 OperaƟng Expenditures This fund budgets for authorized services which include maintenance within Avila Ranch CFD Boundaries and transfers out to the General Fund relaƟng to Police Services, Fire Services and CFD AdministraƟon costs. Authorized Services have ﬁnished well below projecƟons. This is due to the ongoing buildout of the Avila Ranch project with many of the authorized services not needed currently. Any budgeted amount not used will carry over with fund balance to next ﬁscal year and will be used for subsequent years’ expenses. Transfers Out exceeded the budget due to the inclusion amounts that were budgeted in FY 2023-2024 but were not transferred unƟl FY 2024-2025. There is no expected ongoing impact as the transfers will be made quarterly within budgeted amounts going forward now that a process is in place to accommodate those transfers. Overall, total expenditures ﬁnished 23% below esƟmates, exceeding budget only due to the one-Ɵme catchup transfers. Revenue The fund collects property tax from residents under the Teeter Plan with the County and ﬁnished the year exceeding budget esƟmates by 3%. The reason for exceeding budget revenue is due to the budgeted amount being based on an esƟmated number of permits issued as of June 30th, whereas the tax levy submiƩed to and collected by the County was based on the actual number of permits issued as of June 30th, which exceeded the budget projecƟons. In addiƟon, Interest on Investment is not budgeted for but was earned based on the fund balance during FY 2024-2025. The investment income is not budgeted for due to the variable nature of revenue which cannot be relied upon for annual CFD expenditure as a stable source of revenue. `FY 2023-24 FY 2024-25 FY 2025-26 Avila Ranch Actual Budget Actual Funds Available % Budget Contract Services 39,632$ 90,884$ 46,862$ 44,021$ 48% 74,511$ Other Operating Expenditures 2,041 154,000 3,573 150,427 98% 24,500 Transfers Out 17,085 110,814$ 386,517$ (275,703) -249% 234,122 Total 58,758$ 355,698$ 436,952$ (81,255)$ -23% 333,133$ FY 2023-24 FY 2024-25 FY 2025-26 Avila Ranch CFD Actual Budget Actual Variance % Budget Tax Revenue 258,289 523,648 539,453 15,805 3% 792,617 Investment Income 10,695 - 21,063 21,063 0% - Total Revenue 268,984 523,648 560,516 36,868 7% 792,617 Page 161 of 349 Other Funds San Luis Ranch CFD no. 2019-1 OperaƟng Expenditures The fund budgets for authorized expenditures, which include CFD administraƟon costs, trustee services, and arbitrage compliance. In addiƟon, the fund budgets for transfers out to General Fund for City Staff costs and for PAYGO amounts idenƟﬁed by the administrator, and debt service for bonds issued by the San Luis Ranch CFD Contract Services and Debt Service expenditures have ﬁnished just below projecƟons; however, Transfers Out exceeded the budget due to the inclusion of prior year amounts that were budgeted in FY 2023-2024 but were not transferred unƟl FY 2024-2025. The prior year’s transfer was made using fund balance held from prior year. There is no expected ongoing impact as the transfers will be made quarterly within budgeted amounts going forward now that a process is in place to accommodate those transfers. Overall, total expenditures ﬁnished 16% below esƟmates, exceeding budget only due to FY 2023-2024 transfers occurring in FY 2024-2025. Revenue The fund collects property tax from residents under the Teeter Plan with the County and ﬁnished the year exceeding budget esƟmates. The reason for exceeding budget revenue is due to the budgeted amount being based on an esƟmated number of permits issued as of May 1st, whereas the tax levy submiƩed to and collected by the County was based on the actual number of permits issued as of May 1st, which exceeded the budget projecƟons by 34%. In addiƟon, Interest on Investment is not budgeted for and the fund receives substanƟal amount of interest each year due to the bond proceeds which have not yet been expended. Interest on Investment is subject to arbitrage payments to IRS and is highly dependent upon the bond proceeds sƟll on deposit and therefore is not a stable source of revenue to rely upon for CFD annual expenditures. `FY 2023-24 FY 2024-25 FY 2025-26 San Luis Ranch Actual Budget Actual Funds Available % Budget Contract Services 9,145$ 187,205$ 181,313$ 5,892$ 3% 197,644$ Other Operating Expenditures - - - - 0% 141,773 Debt Service 911,650 949,450 927,450 22,000 2% 946,700 Transfers Out - 26,530$ 245,664$ (219,134) -826% 207,243 Total 920,795$ 1,163,185$ 1,354,427$ (191,242)$ -16% 1,493,360$ FY 2023-24 FY 2024-25 FY 2025-26 San Luis Ranch CFD Actual Budget Actual Variance % Budget Tax Revenue 1,274,999 1,000,250 1,345,180 344,930 34% 1,360,981 Investment Income 592,271 - 566,745 566,745 0% - Total Revenue 1,867,271 1,000,250 1,911,925 911,675 91% 1,360,981 Page 162 of 349 Other Funds Boysen Ranch ConservaƟon 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 conservaƟon easements that protect the approximately 25 acres of the Ranch to miƟgate 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. Required monitoring acƟviƟes are funded through investment income earned from this endowment. OperaƟng Expenditures Monitoring acƟviƟes costs were largely in line with budget. The FY 2025-26 budget includes a carryover of unspent prior year funds which will be used as called for in the endowment agreement. Revenue As an endowment fund, the Boysen Ranch fund depends on investment income to fund its operaƟons and has beneﬁted greatly from market condiƟons in recent years. Investment Income not spent in the current year will be reinvested and made available to offset any shorƞalls in future years should they occur. `FY 2023-24 FY 2024-25 FY 2025-26 Boysen Ranch Actual Budget Actual Funds Available % Budget Contract Services 9,135$ 5,101$ 5,023$ 78$ 2% 12,535$ Total 9,135$ 5,101$ 5,023$ 78$ 2% 12,535$ FY 2023-24 FY 2024-25 FY 2025-26 Boysen Ranch Actual Budget Actual Variance % Budget Investment Income 18,353 7,500 20,157 12,657 169% 7,500 Total Revenue 18,353 7,500 20,157 12,657 169% 7,500 Page 163 of 349 Other Funds Downtown Business Improvement District The City is the administrator for the Downtown Business Improvement District and collects the downtown assessment annually with the Business Tax renewals from businesses located within the geographical boundaries of the Downtown District. Business Tax cerƟﬁcates are renewed at the beginning of each ﬁscal year. The revenue is then remiƩed to Downtown SLO via the fund’s Contract Services budget. OperaƟng Expenditures The fund remits all collecƟons to Downtown SLO and any variances from revenue or budget are due to Ɵming and amount of collecƟons. Variances to budget here are expected due to this Ɵming difference, however, total expenditures will always equal total revenue in the long run. Revenue Assessment revenues exceeded budget primarily due to an accounƟng adjustment for prior year assessments transferred to Downtown SLO in FY 2024-25. Based on year-to-date collecƟons, it is expected that assessment revenue will modestly exceed budget in FY 2025-26 and further accounƟng adjustments will not be necessary. `FY 2023-24 FY 2024-25 FY 2025-26 Downtown Actual Budget Actual Funds Available %Budget Contract Services 396,392$ 258,462$ 185,341$ 73,121$ 28% 246,713$ Total 396,392$ 258,462$ 185,341$ 73,121$ 28% 246,713$ FY 2023-24 FY 2024-25 FY 2025-26 Downtown Actual Budget Actual Variance % Budget Assessments 265,255$ 258,462$ 319,277$ 60,815$ 24% 246,713$ Total Revenue 265,255$ 258,462$ 319,277$ 60,815$ 24% 246,713$ Page 164 of 349 Capital Projects Capital Improvement Plan Update A Year in Review This year, the City’s Capital Improvement Program advanced several major projects that improved infrastructure, safety, and community spaces. ConstrucƟon progressed on Mission Plaza improvements, including a new restroom and kiosk to enhance public use, and on the Mid-Higuera Bypass, which realigns the creek to reduce ﬂood risk and improve regional resilience. Work conƟnues on the Cultural Arts District Parking Structure, which is taking shape, while maintenance at the Palm Street garages and upgrades to parking systems improved reliability and user experience. This year, the City also completed the Laguna Lake Dog Park and North Broad Park, expanding access to recreaƟon throughout the community. In addiƟon, nearly $13 million in street paving and sealing work was completed citywide, including the 2023 Arterials Project and the 2024 Sealing Project, improving roadway condiƟons, extending pavement life, and adding quick-build complete street improvements to increase safety on the roadway. Key water projects were completed, including the Johnson Avenue Waterline Replacement and California Boulevard Waterline Replacement, improved system reliability. Progress also conƟnued on transit charging infrastructure in support of the City’s carbon neutrality goals. Together, these efforts reﬂect the City’s commitment to delivering sustainable, reliable, and community-focused infrastructure that meets both current and future needs. Project Tables The following tables detail the projects that were completed or ongoing during the ﬁscal year as well as the major and legacy projects in the design phase: Page 165 of 349 Project Number Project Total Budget Estimated Construction Completion Date Additional Comments 2000049 842 & 919 Palm Parking Structure Repairs $ 2,538,989 Completed 2000126 Water Treatment Plant Generator Improvement Project at Facility 98 $ 3,527,523 Completed 2000188 Mitchell Park Revitalization $ 471,253 Completed 2000525A Parking Equipment at Gate Entry (842 Palm) $ 312,000 Completed 2000578 Johnson Waterline $ 5,204,444 Completed 2000615 2024 Sealing Project $ 3,000,000 Completed 2001050 Tank Farm Lift Station Discharge Pipe Replacement Phase 2 $ 223,678 Completed 2001065 2023 Arterials $ 9,823,766 Completed 2001069 Righetti Hillside Emergency Repair $ 1,540,000 Completed 2091368 Reservoir 2 Cover Replacement $ 2,617,247 Completed 2091683 North Broad Park $ 1,533,939 Completed 2000031-08.01 Damon Garcia Sports Field Complex Parking Lot Maintenance $ 130,000 Completed 2000031-08.05 Johnson Park Parking Lot Maintenance $ 50,000 Completed 2000032-04 Railroad Safety Trail from Cal Poly to Taft Street $ 130,775 Completed 2000036-04 North Chorro Greenway Underbelly Lighting $ 50,000 Completed 2090742-08 Trash Capture Phase I $ 23,575 Completed 2090742-13 Chorro CMP Replacement $ 37,819 Completed 2000036-05 North Chorro Greenway Underbelly Painting $ 60,000 Completed 2000075-06 Fire Station 4 Exterior Painting $ 55,000 Completed 2000075-07 Parking HVAC Replacement $ 260,000 Completed 2000075-9.01 Corporation Yard Fuel Island and Wash Station Rehabilitation $ 827,556 Completed 2001001-14 Higuera St Crack Sealing $ 109,072 Completed 2001010-01 Cheng Park Revitalization $ 807,786 Completed 2090742-10 Smith Augusta CMP Emergency Repair $ 850,000 Completed 2001001-15 Santa Fe Bridge Railing Repair $ 127,000 Completed 2001068 Laguna Lake Dog Park $ 1,600,000 Completed 2000034-03 Wash Water Tank #1 $ 753,807 Completed 2001001-02 Palm Street Sidewalk Replacement $ 176,205 Completed 2001066B 1166 Higuera Parking Lot $ 428,183 Completed 2000545 California Waterline Replacement $ 1,550,505 Completed 2000535 Transit EV Charging Infrastructure $ 2,300,000 Completed 2000561 Morro and Mill Sewer Replacement $ 2,800,000 Q1 FY 25-26 Construction Ongoing 2091219 Wastewater Resource Recovery Facility Upgrade $ 143,376,754 Q1 FY 25-26 Construction Ongoing 2000075-13.01 Jack House Roof and Windows $ 499,554 Q1 FY 25-26 Construction Ongoing 2000539-02 Sierra Way Waterline Replacement $ 2,766,449 Q1 FY 25-26 Construction Ongoing 2000096 Sewer-main Replacement: Foothill and Santa Rosa CalTrans $ 598,591 Q2 FY 25-26 Construction Ongoing 2090649 Mid-Higuera Bypass $ 11,550,000 Q2 FY 25-26 Construction Ongoing 2091439 Mission Plaza Enhancements $ 3,729,574 Q2 FY 25-26 Construction Ongoing 2000114-02 City Hall's Finance/IT Remodel $ 1,337,705 Q2 FY 25-26 Construction Ongoing Completed & Ongoing Construction Capital Projects (July 2024 -June 2025) Page 166 of 349 2000574-01 Downtown Multi-Space Pay Station Installation $ 1,400,000 Q2 FY 25-26 Construction Starting in Q2 FY25-26 2000577-04 1106 Walnut TI $ 2,000,000 Q2 FY 25-26 Construction Ongoing 2000615-01 Grand Ave Sealing Project $ 429,000 Q2 FY 25-26 Construction Starting in Q2 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 Q3 FY 25-26 Construction Ongoing 2000054-01 Righetti Community Park $ 13,668,912 Q2 FY 26-27 Construction Starting in Q2 FY25-26 Project Number Project TOTAL ESTIMATED PROJECT COST (Construction Phase) Estimated Construction Start Date Additional Comments 2091503 California and Taft Roundabout $ 4,000,000 Q1 FY 26-27 Right of way acquisition in progress and finalizing design documents. 2091252 Prado Road Bridge and Road Widening $ 28,210,000 Q2 FY 27-28 Working on regulatory permits and 90% constuction 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 167 of 349 Page 168 of 349 Major City Goals Major City Goal Update The table below shows the Major City Goal tasks included in the 2023-25 Financial Plan. Of the 145 tasks expected to be completed during the Financial Plan, 129 or 89% were either completed or ongoing. A brief summary of how each task was completed is included in the table below and the writeups that follow include addiƟonal informaƟon on tasks that were not completed as expected. Page 169 of 349 MCG Strategy Strategic Approach # Task/ Action Responsible Department(s) Original Completion Date Updated Completion Date StatusNotes 1.1 For All Members of the Community ER,CV & FS Sustainable, Diverse, and Inclusive Economic Development 1.1 a. Implement the relevant actions in the updated Economic Development Strategic Plan (EDSP) focusing on those relevant to Economic Resiliency, Cultural Vitality and Fiscal Sustainability. ADM (ED&T)Ongoing Ongoing In FY 2024-25, work continued on developing a formalized business retention and expansion program and supporting arts and culture through programs like ARTober. In FY 2024-25, 128 businesses were assisted; 90 of these businesses were existing and 38 were new businesses. ER,CV & FS Sustainable, Diverse, and Inclusive Economic Development 1.1 b. Continue to partner with the Office of Sustainability to implement the economic development related actions in the Climate Action Plan (CAP) as well as the sustainability related actions in the updated Economic Development Strategic Plan (EDSP) ADM (ED&T/Sustainability)Ongoing Ongoing The ED&T team continues to implement the Keys for Trees program in support of the City's CAP, in which 1% of TBID assessment revenues are dedicated towards planting trees in the community in partnership with EcoSLO and the City's Sustainability and Natural Resources Office. ER,CV & FS Sustainable, Diverse, and Inclusive Economic Development 1.1 c. Continue to partner with the Office of Diversity, Equity and Inclusion (DEI) to implement the economic development related actions in the DEI major City goal and planned DEI strategic framework as well as the DEI related actions in the updated Economic Development Strategic Plan (EDSP) ADM (ED&T/DEI)Ongoing Ongoing In FY 2024-25, the ED&T team helped to orient the new staff in the DEI office on areas of overlap between the EDSP and DEI Strategic Plans and collaborated on work such as programming, business outreach, and demographic surveys as part of the business license process. ER,CV & FS Sustainable, Diverse, and Inclusive Economic Development 1.1 e. Continue to update the employment scorecard and the economic activity scorecard. ADM (ED&T)/CDD/PW/FIN Ongoing Ongoing Updated data is published at regular intervals on the City website. ER,CV & FS Sustainable, Diverse, and Inclusive Economic Development 1.1 d. Continue to monitor local labor participation in major City projects and adjust the City's efforts as needed to ensure local labor participation through the use of Community Workforce Agreements and other similar tools. Work to finalize CWA for Prado Overpass and Public Safety Center. PW/Util Ongoing Ongoing Monitoring of local labor participation ongoing. Since 2023, City construction projects have seen 72% of hours completed by local labor. 1.2 Business Support ER,CV & FS Business Support 1.2 a. Continue activations, promotions and programs like "Buy Local Bonus", "Eat Local Bonus" and "Shop local" to build economic resiliency through out the City and including downtown. ADM (ED&T)Ongoing Ongoing In FY 2024-25, the ED&T team executed various "support local" campaigns. For example, for the 2024 Buy Local Bonus Program, the City’s initial investment of $115,000 in gift cards incentivized $753,597 in additional local spending by shoppers, resulting in a record-breaking 685% return on investment. The ED&T team also conducted a 5-year look-back and analysis on the Buy Local Bonus program to better understand trends and performance. ER,CV & FS Business Support 1.2 b. Continue to work with partners at the Chamber, REACH, Cal Poly, Downtown SLO, SCORE and others to support the business community through retention, creation, attraction, education and communication efforts. ADM (ED&T)Ongoing Ongoing In FY 2024-25, the ED&T team continued partnerships with various economic development partners and collaborated with them on business technical assistance, including the development of the new business retention and expansion program. Page 170 of 349 MCG Strategy Strategic Approach # Task/ Action Responsible Department(s) Original Completion Date Updated Completion Date StatusNotes ER,CV & FS Business Support 1.2 c. Continue to promote the City to tourists, visitors and locals through the efforts of the TBID and the PCC. ADM (ED&T)Ongoing Ongoing In 2024, the City welcomed 1.5 million visitors, generating a direct spending impact of $455 million and $648 million in total economic impact across the region, supporting about 4,700 total jobs. In FY 2024-25, the City collected a record-breaking $11.4 million in transient occupancy tax revenue, showing a strong performance for the work of the TBID and PCC. ER,CV & FS Business Support 1.2 e. Ensure broad and inclusive engagement in area and specific plans updated by the Community Development Department to represent the needs of local businesses. ADM (ED&T)/CDD Ongoing Ongoing The City continues to seek broad community engagement for updates to plans, including work on the Upper Monterey Special Focus Area, and Airport Area Plan update. The Community Development Department worked with the DEI team on the update to the Historic Preservation Ordinance and Context Statement and will continue to partner with DEI staff on upcoming projects. ER,CV & FS Business Support 1.2 g. Continue to support new and expanded private childcare options through the use of grant funding and other programs. ADM (ED&T)Ongoing Ongoing To date, the grant has created 11 newly licensed businesses and 116 slots for children, with 8 applicants pending licensure with potential to create an additional 92 slots. In FY 2024-25, ED&T staff applied for grant funding for an extension of existing childcare grant program and a pilot program to waive fees for day care centers, but was not selected for funding. ER,CV & FS Business Support 1.2 h. Continue to support the childcare options for school age children through the City's own programs and programs in conjunction with other partners. P&R Ongoing Ongoing Provided childcare at 5 school sites during the school year and at 3 camp sites during the summer. Partnered with SLCUSD and CAPSLO Child Care Resource Center for all program periods. ER,CV & FS Business Support 1.2 I. Proactively evaluate and implement after briefing Council on opportunities to partner with Cal Poly, San Luis Coastal Unified School District and other major employers for employer supported childcare programs. P&R Ongoing Deferred See notes below. ER,CV & FS Business Support 1.2 j. Represent the interests of the business community during the implementation of the broadband strategic plan. ADM (ED&T)Ongoing Ongoing Staff continues to respresent the interests of the business community in the Broadband Strategic Plan. ER,CV & FS Business Support 1.2 d. Continue to focus on efficiency and transparency in the permitting process through implementation of new tools, performance management reporting, and enhanced customer transparency tools. Report recurring performance measures or permit processing times during General Plan Annual Report. CDD Ongoing Ongoing Key performance indicator dashboards are available online to help set accurate expectations with our customers for permit processing timelines, code enforcement responses, and customer service results. Page 171 of 349 MCG Strategy Strategic Approach # Task/ Action Responsible Department(s) Original Completion Date Updated Completion Date StatusNotes ER,CV & FS Business Support 1.2 f. Conduct outreach and engagement with property owners and businesses in the Upper Monterey Special Focus Area to confirm scope in pursuing an area plan consistent with Land Use Element Policy 8.2.2. CDD FY25 Q4 FY25 Q4 CDD, in coordination with Economic Development, conducted a wide range of outreach and engagement opportunities with property owners, businesses, and the general public regarding the Upper Monterey Special Focus Area. These events / activities included two outreach events (a focus group on January 16, 2025 and an open house on January 30, 2025), an online survey on Open City Hall that captured 186 responses, and one on one interviews. In parallel with this City effort, Cal Poly’s City and Regional Planning Department led a Graduate Student Studio that researched and came up with design concepts for the Upper Monterey Area and presented them to the Planning Commission on May, 28, 2025. https://opengov.slocity.org/WebLink/DocView.aspx?id=210672& dbid=0&repo=CityClerk&cr=1 1.3 Arts & Culture Support ER,CV & FS Downtown Vitality 1.3 d. Develop a Council report and Study Session on downtown vacancies, the status and possible options to address any issues identified. ADM (ED&T)FY24 Q2 FY24 Q3 Staff completed Council briefings on downtown vacancies and vibrancy in Spring 2024. ER,CV & FS Downtown Vitality 1.3 a. Continue to partner with Downtown SLO to ensure the promotion, resiliency, growth, and vitality of the Downtown. ADM (ED&T)Ongoing Ongoing ED&T staff continued to partner with Downtown SLO on numerous projects and issues, including on the holiday lights activation in Mission Plaza, Concerts in the Plaza, and the Clean and Safe Program. ER,CV & FS Downtown Vitality 1.3 b. Continue to financially and operationally support Downtown SLO during the winter holidays including incentivizing private participation through the matching program. ADM (ED&T)Ongoing Ongoing ED&T staff continued to partner with Downtown SLO on numerous projects and issues, contributing $150,000 towards the on the holiday lights activation in Mission Plaza in FY 2024- 25. ER,CV & FS Downtown Vitality 1.3 c. Continue to support the Downtown SLO programs like Clean & Safe, the Ambassadors and homelessness support. ADM (ED&T)Ongoing Ongoing ED&T staff continued to partner with Downtown SLO on numerous projects and issues, including funding $60,000 for the Clean and Safe program in FY 2024-25. ER,CV & FS Downtown Vitality 1.3 Develop an implementation plan for the recently adopted Access and Parking Management Plan and begin execution of the plan. PW Ongoing Ongoing Implementation of some APMP elements complete, and new projects and programs underway consistent with subsequent 2024 Parking Rate Study and Technology Roadmap. ER,CV & FS Downtown Vitality 1.3 g. Replace the existing Mission Plaza Restrooms in compliance with Mission Plaza Concept Plan and Council Direction. PW Ongoing Ongoing Construction ongoing. Completion expected in November 2025 ER,CV & FS Downtown Vitality 1.3 f. Begin construction of the Cultural Arts District Parking Structure.PW FY24 Q2 FY24 Q2 The Cultural Arts District Parking Structure broke ground in November and construction is on schedule to be completed in early 2026. 1.4 Downtown Vitality ER,CV & FS Support Arts and Culture 1.4 h. Develop a Council Memorandum on the current base level of economic support for Arts and Cultural activities across the various departments in the City. ADM (ED&T)FY24 Q2 FY24 Q2 A memo was completed and distributed to Council in December 2023. Page 172 of 349 MCG Strategy Strategic Approach # Task/ Action Responsible Department(s) Original Completion Date Updated Completion Date StatusNotes ER,CV & FS Support Arts and Culture 1.4 g. Initiate implementation of the consultant recommended phased approach to update the City's historic resources inventory. CDD FY24 Q2 FY24 Q2 The City has initiated implementation of the phased approach to update the historic resources inventory. A consultant was hired in November 2023 and has conducted multiple study sessions with the CHC. A draft of the ordinance is going out for public review on 9/18/25. Staff anticipates bringing the update forward for CHC review on 9/29/25, PC 10/22/25 and CC 12/2/25. ER,CV & FS Support Arts and Culture 1.4 a. Continue to work with our community partners to ensure the Cultural Vitality of the City. P&R/ADM (NR&S)/ADM (ED&T)Ongoing Ongoing Parks and Recreation have enhanced partnerships with Arts Council, local artist groups and SLOMA to enhance cultural offerings, including Artist Lecture series, public art tours and events, and promotions of the public art program. ER,CV & FS Support Arts and Culture 1.4 b. Continue to execute the City's public art master plan. P&R Ongoing Ongoing During the fiscal year, the City reignited the Box Art program, with over 20 installations and several artist events. Public Art staff worked with PW staff to install a major art piece under the North Chorro underpass. Restoration was complete on Seven sisters bridge railing. Outreach and promotion to the community and visitors has expanded. The Public Art program provided enhanced programming, including real artist classes in summer camps, senior center tours, several volunteer led public art maintenance days. The City public art staff also became intricately involved in California and nationwide outreach and advisory opportunities. ER,CV & FS Support Arts and Culture 1.4 c. Ensure that the City promotes the various City and privately owned art installations through programs like the public art promotional plan developed by the PCC. ADM (ED&T)Ongoing Ongoing The ED&T team continued to promote public art through programs such as ARTober. ER,CV & FS Support Arts and Culture 1.4 d. Continue to financially support the Arts and Cultural Activities of the City through the PCC's GIA program and the additional grant funding via the PCC. ADM (ED&T)Ongoing Ongoing In FY 2024-25, through the PCC the City Council awarded $100,000 in funding through the CACP grant program to 23 nonprofits for events and festivals occurring in the city. ER,CV & FS Support Arts and Culture 1.4 e. Continue the citywide banner program. ADM (ED&T)Ongoing Ongoing ED&T staff continued to implement the banner program, including adding an Independence Day banner series and garlands on light poles during the month of July. ER,CV & FS Support Arts and Culture 1.4 f. Continue to support the preservation of the City's adobes, including work on the La Loma Adobe through a phased approached intended to ensure that the structure is ready for active stabilization efforts by 2025. ADM (NR&S)FY25 Q4 FY25 Q4 Staff are actively supporting the City's partnership relationship with the Friends of La Loma Adobe (FLLA). This past year saw the stabilization of the east wall of the building, submittal of plans, specifications and engineering in support of FLLAs building permit application, and meaningful progress towards addressing the lot line boundary issue. 1.5 Practicing Fiscal Responsibility ER,CV & FS Ensuring Fiscal Responsibility and Sustainable City Operations 1.5 c. Implement a City fee program update.CSG FY24 Q4 FY25 Q1 The User Fee Study and recommended fee changes were presented to and adopted by Council on July 2, 2024. The updated fees went into effect on October 1, 2024. Page 173 of 349 MCG Strategy Strategic Approach # Task/ Action Responsible Department(s) Original Completion Date Updated Completion Date StatusNotes ER,CV & FS Ensuring Fiscal Responsibility and Sustainable City Operations 1.5 d. Implement a Development impact fee (AB1600) study and update. CSG FY24 Q3 FY26 Q2 See notes below. ER,CV & FS Ensuring Fiscal Responsibility and Sustainable City Operations 1.5 Continue to implement and enhance the City's sound financial management practices to support stability of the organization and services provided to the community. Fin Ongoing Ongoing The Finance Department continues to implement financial management practices to support the organizational stability of the organization. The department continues to provide trainings to City staff to increase the level of financial acumen within the organization and to educate staff on financial policies and procedures. In developing the 2025-27 Financial Plan, the department required that all budget submittals keep non-staffing budgets at the FY 2024-25 adopted level, forcing a careful consideration of what was budgeted in each account. Finally, the department has begun an effort to evaluate all sections of the Financial Management Manual to ensure that policies and procedures are clear and reflect the current needs of the organization. ER,CV & FS Ensuring Fiscal Responsibility and Sustainable City Operations 1.5 e. Monitor Public Banking advances and alert the City Council to major changes. Fin Ongoing Ongoing There have been no notable advances or major changes to public banking. ER,CV & FS Ensuring Fiscal Responsibility and Sustainable City Operations 1.5 f. Continue to support and prioritize employee development and growth through investing in resources to train, develop, and onboard new and transitioning employees. HR/All Ongoing Ongoing Continued efforts are focused on strengthening training and development opportunities for City employees. A comprehensive learning and development plan was launched at the beginning of FY 2024-25, offering targeted trainings for employees such as Leader as a Coach, Difficult Decisions, and Effective Decision- Making. City-led sessions have also addressed key topics such as Performance Management 101 and proper timecard completion and approval. Additionally, approximately ten individualized coaching opportunities have been provided for supervisors and managers across the organization to further support leadership growth. ER,CV & FS Ensuring Fiscal Responsibility and Sustainable City Operations 1.5 g. Continue to support employees in managing their workloads by reviewing and prioritizing work efforts, goals, and balancing trade-offs for a new workload. HR/All Ongoing Ongoing Work continues to focus on helping employees effectively manage and prioritize their workloads. Supervisors are encouraged to hold one-on-one check-ins with employees to review priorities, with some teams also conducting “priority roundtable” discussions to clarify and discuss workload distribution. One component of our Supervisor’s Toolkit includes practical resources to enhance engagement and workload prioritization. ER,CV & FS Ensuring Fiscal Responsibility and Sustainable City Operations 1.5 h. Continue to evaluate and adjust internal meetings to create more effective meeting practices.HR/All Ongoing Ongoing Ongoing efforts continue to focus on improving meeting effectiveness across the organization. ‘No Meeting Fridays’ are encouraged to promote focus time, and a standardized meeting agenda template is encouraged to use to help teams spend meeting time more efficiently and productively. Page 174 of 349 MCG Strategy Strategic Approach # Task/ Action Responsible Department(s) Original Completion Date Updated Completion Date StatusNotes ER,CV & FS Ensuring Fiscal Responsibility and Sustainable City Operations 1.5 i. Continue promoting cross-department communication and collaboration amongst employees.HR/All Ongoing Ongoing Efforts to enhance cross-department communication and collaboration remain ongoing. City Manager all-employee briefings have continued, with the date adjusted during the fiscal year to better accommodate participation. Interdepartmental connections have been strengthened through initiatives such as the establishment of the CSG Program Managers meeting. Employees responded positively to the Working as High- Performing Teams training, which focused on improving communication and collaboration organization-wide. ER,CV & FS Ensuring Fiscal Responsibility and Sustainable City Operations 1.5 j. Continue to evaluate and enhance the training and usability of Oracle Cloud, the City's Enterprise Resource Planning/Human Capital Management software. IT/Fin/HR Ongoing Ongoing Ongoing work on Oracle focuses on continuously improving system usability, functionality, and efficiency across departments. This includes implementing system enhancements, ensuring compliance with evolving legal requirements, and developing solutions to address system issues. Staff in IT, HR and Finance continue to provide support to end users through development and delivery of training resources such as Oracle Guided Learning (OGLs). IT, HR and Finance collaborate closely to identify pain points, deliver targeted system improvements, and ensure that Oracle remains aligned with the City’s operational needs and strategic goals. Key initiatives from 2023–2025 included implementing an automated overtime calculation, updating time cards, and making configuration changes to align with new MOUs. ER,CV & FS Ensuring Fiscal Responsibility and Sustainable City Operations 1.5 b. Conduct a Study Session on alternative capital project delivery options and determine whether Council wishes to PW/Util Ongoing Ongoing See notes below. 2.1 Establish Office of DEI DEI Operationalize Office of DEI 2.1 a. Based on the completion of the DEI Strategic Plan, determine the ongoing support structure needed in the Office of DEI to optimally deliver organizational and community programs and services. Admin-DEI Ongoing FY26 Q1 The Office of DEI is now fully staffed with a Manager and Administrative Specialist. The Office also utilizes intern/fellow support as well as limited support from DEI Employee Committee staff. DEI Operationalize Office of DEI 2.1 b. Work with Cal Poly and Cuesta to host interns.Admin-DEI Ongoing Ongoing The Office of DEI has hosted Cal Poly interns/fellows and has continued to expand this effort in CY 2025. The Office of DEI has also posted an internship opportunities with the Cuesta College Ethnic Studies and Cal Poly Psychology departments. Student interns will continue to be part of our work moving forward. DEI Operationalize Office of DEI 2.1 c. Further develop purpose, role, activities, and enhance impact of DEI Employee Committee, including equal standing and priority to tasks and responsibilities assigned to the members (e.g. ERGs, newsletters, cultural celebrations, trainings, internal communication, public web pages, etc.). Admin-DEI Ongoing Ongoing The DEI Employee Committee has continuously met and produced internal newsletters in addition to other activities. The Committee recently finalized a charter, which clarified roles, responsibilities, created subcommittees, and implemented a workplan for the coming FY. The Office of DEI will continue to support the DEI Committee moving forward. Page 175 of 349 MCG Strategy Strategic Approach # Task/ Action Responsible Department(s) Original Completion Date Updated Completion Date StatusNotes DEI Operationalize Office of DEI 2.1 d. Continue to support and act as the staff liaison to the Human Relations Commission (HRC).Admin/DEI Ongoing Ongoing The Office of DEI continues to staff and support the HRC. DEI Operationalize Office of DEI 2.1 e. Continue to provide grant support to the HRC for DEI High Impact Grants, Community Development Block Grants and Human Services Grants and complete necessary follow up and reporting with grant recipients. Admin-DEI Ongoing Ongoing The Office of DEI continues to support the HRC for their two grants and ensure proper notice and outreach, review of applications, as well as necessary reporting and follow-ups. 2.2 Develop & Implement DEI Strategic Plan DEI Develop & Implement DEI Strategic Plan 2.2 a. Complete a DEI Strategic Plan for comprehensive DEI initiatives and programming for the organization and community based on needs, priorities, and resource assessments. Admin-DEI FY24 Q3 FY24 Q3 The DEI Strategic Plan was presented to and approved by Council in February 2024 and is being implemented. A yearly progress report will be presented to Council in June. DEI Develop & Implement DEI Strategic Plan 2.2 b. Implementation of prioritized programs as outlined in the DEI Strategic Plan within available resources.Admin-DEI Ongoing Ongoing The Office of DEI continues to plan for and implement items in the DEI Strategic Plan based on priority (i.e., Major City Goal items). This has been operationalized into the Office of DEI. 2.3 Workforce Recruitment & Retention DEI Foster and Promote Equitable Recruiting, Hiring, Retention, and Promotion Practices 2.3 a. Continue to enhance job descriptions and recruiting materials such as materials in Spanish or in different formats to easy access. HR Ongoing Ongoing The Office of DEI researched various best practices for recruitment and is leveraging the DEI Employee Recruitment/HR Subcommittee to refine the research and recommend best practices to HR. DEI Foster and Promote Equitable Recruiting, Hiring, Retention, and Promotion Practices 2.3 b. Assess and develop enhancements processes such as implementing DEI-focused screening and interviewing trainings to personnel and interview panels. HR Ongoing FY25 Q4 The Office of DEI researched various best practices for screening and interviewing and is leveraging the DEI Employee Recruitment/HR Subcommittee to refine the research and recommend best practices to HR. DEI Foster and Promote Equitable Recruiting, Hiring, Retention, and Promotion Practices 2.3 c. Create and rollout DEI-focused trainings for employees.HR Ongoing FY27 Q4 The Office of DEI has contracted with external professional experts to develop content and lay groundwork for future workshops on topics such as bias, mircoaggressions, and cultural humility for the entire organization. DEI Foster and Promote Equitable Recruiting, Hiring, Retention, and Promotion Practices 2.3 d. Examine policies and programs to support primary caretakers.HR Ongoing Ongoing The Office of DEI has created a Caregivers/Family Friendly Workplace Subcommittee through the DEI Employee Committee which recently submitted the Family Friendly Workplace Assessment and will be reviewing the results when they arrive. DEI Foster and Promote Equitable Recruiting, Hiring, Retention, and Promotion Practices 2.3 e. Continue communicating childcare options and resources for City employees; additional to First 5 findings. Explore flex schedules, job share, remote options, etc. HR Ongoing Ongoing The Office of DEI has created a Caregivers/Family Friendly Workplace Subcommittee through the DEI Employee Committee that will assist with this work. The City recently implemented a remote work policy in Jan 2025, the Office of DEI will support implementation as needed. 2.4 Inclusive & Equitable Workplace DEI Enhance Inclusive & Equitable Workplace Environment 2.4 a. Develop and adopt a DEI statement for the organization.Admin-DEI FY24 Q1 FY24 Q3 A DEI statement was developed and included in the DEI Strategic Plan. DEI Enhance Inclusive & Equitable Workplace Environment 2.4 b. Develop and implement a DEI module in new hire onboarding process.HR Ongoing Ongoing The Office of DEI has updated the pronouns module in the onboarding process in collaboration with HR. The Office of DEI also participates in the Day of Welcome program. Page 176 of 349 MCG Strategy Strategic Approach # Task/ Action Responsible Department(s) Original Completion Date Updated Completion Date StatusNotes DEI Enhance Inclusive & Equitable Workplace Environment 2.4 c. Provide DEI-related training for all staff of all levels (Council, Commission, Advisory Board, Directors, Managers, Staff, etc.). Admin-DEI/HR Ongoing FY27 Q4 The Office of DEI has contracted with two external professional experts to develop four DEI workshops that will be used across the organization to provide staff and leadership with the knowledge, tools, and skills needed to create a workplace culture that embraces diversity, equity, and inclusion. DEI Enhance Inclusive & Equitable Workplace Environment 2.4 d. Complete a planning study for gender-inclusive restroom and sleeping facilities for Fire Stations 3 & 4. Process with design work pending results of study. Public Works/Fire Ongoing FY26 Q1 Study is complete and gender inclusivity is being incorporated into design of tenant improvements for Fire Station 3 & 4. 2.5 Community-based Policing & Restorative Practices DEI Community-based Policing & Restorative Practices 2.5 a. Promote DEI best practices in Police Department (PD) recruiting and hiring efforts.Admin-DEI/PD/HR Ongoing Ongoing The Office of DEI has met with PD staff multiples times to learn about their current recruitment process. The Office of DEI has made recommendations to improve the recruitment process, including updates to the PD website. This will be ongoing collaboration and has been operationalized into our workflows. DEI Community-based Policing & Restorative Practices 2.5 b. Work in partnership with Facilities and PD to ensure new public safety building design is equitable and inclusive for the community and all department employees. Admin/PD/Public Works Ongoing Ongoing Tenant improvements at 1106 Walnut and 1042 Walnut are being prioritized at this time. Plans for the Public Safety Center will continue – but timing and location is unknown at this time. DEI Community-based Policing & Restorative Practices 2.5 c. Continue to work with community partners (PAC and Roundtable) to give the community a voice in policing and that 21st Century Policing Recommendations are implemented where possible. PD Ongoing Ongoing The Office of DEI is attending the PAC as well as collaborating with SLOPD on their strategic plan DEI efforts. DEI Community-based Policing & Restorative Practices 2.5 d. Use Community partnerships to help build a 5-year strategic plan to create transparency and legitimacy.PD Ongoing FY24 Q1 PD's 5-year Strategic Plan has been created, staff's work on objectives is ongoing. 2.6 Cal Poly & Cuesta Partnerships DEI Enhance and Expand Cal Poly & Cuesta College Partnerships and Educational Opportunities 2.6 a. Establish bimonthly collaborative and informative meetings with Cal Poly Office of University Diversity & Inclusion and Cuesta College Office of Student Equity & Special Programs to further explore partnerships around education and training. Admin-DEI Ongoing Ongoing The Office of DEI participates in the existing Diversity Partners Network meetings which meets on a monthly basis and includes the organizations listed here. At the end of the FY, the Office of DEI will present their annual report at this meeting. This has been operationalized moving forward. DEI Enhance and Expand Cal Poly & Cuesta College Partnerships and Educational Opportunities 2.6 b. Utilize the Assistant VP for Strategic Planning and Network at Cal Poly OUDI to research best practices, grants for internships, programs, outreach, innovative practices, etc. Admin-DEI Ongoing Ongoing The Office of DEI Manager and the Assistant VP for Strategic Planning Network at Cal Poly have meetings scheduled on a quarterly and reoccurring basis. This has been operationalized into the office's workflow. Page 177 of 349 MCG Strategy Strategic Approach # Task/ Action Responsible Department(s) Original Completion Date Updated Completion Date StatusNotes DEI Enhance and Expand Cal Poly & Cuesta College Partnerships and Educational Opportunities 2.6 c. Host City/Cal Poly quarterly roundtable (City & Cal Poly leadership, DEI Employee Committee, HRC, Cal Poly students, DEI Leaders, Cuesta College, etc.) regarding community/student experience, relationship-building and partnership programs. Admin-DEI Ongoing Ongoing The Office of DEI continues to work with Cal Poly and Cuesta College to increase collaboration and partnership. Diversity Partners Network meetings are one of the ways that collaboration occurs, in addition to the future development of a DEI Advisory Council in 2026. The DEI Advisory Council will be a collaborative iniative between the Office of DEI and Cal Poly's Office of Diversity and Inclusion. This will be a group of community advisors brought together twice a year to provide feedback and ideas on both organizations projects and iniatives. DEI Enhance and Expand Cal Poly & Cuesta College Partnerships and Educational Opportunities 2.6 d. Explore and develop shared multicultural programming, activities, and events with Cal Poly, Cuesta College, and Non-profit partners through a pilot and/or pop up multicultural center experience. Admin-DEI Ongoing Ongoing The Community Belonging Series, which was a partnership with Cal Poly and other community partners, ran through FYs 2023-25 and held multicultural programming free for the community. The Office of DEI will be evaluating the outcomes of the series to determine next steps and how to incorporate the into continued work. DEI Enhance and Expand Cal Poly & Cuesta College Partnerships and Educational Opportunities 2.6 e. Contract to develop a feasibility study for a multicultural center.Admin-DEI Ongoing Ongoing Design study completed by Cal Poly students in March 2023. In 2024, work shifted to pilot events in different spaces throughout the community to better understand the need for a center. The Community Belonging Series with Cal Poly OUDI, hosted 8 events and concluded in June 2025. The final report and findings related to a potential center are being completed. Staff are moving forward with a new iteration of the Community Belonging Series, called the The Belonging Project that will continue to bring the community together to create space to discuss and learn about what brings us together. We will be offering a variety of workshops, cultural events, community dialues, and collaborative partnerships. This will continue to be operationalized into our Office's workflow. 2.7 Access, Inclusion, Support for Underrepresented Communities DEI Strengthen Public Access and Engagement through Transformational Strategies 2.7 a. Support the development and implementation of the Broadband Strategic Plan to ensure access is equitable and pursue funding to fill gaps. Admin-DEI/IT Ongoing FY26 Q2 Phase 1 of the Broadband Plan will be completed in November 2026 with the completion of the City's Last Mile Federal Funding Account project. Staff expects plans to be complete and to Council for authorization to bid by December 2025. DEI Strengthen Public Access and Engagement through Transformational Strategies 2.7 b. Continue to provide Community Academy program in even numbered years including application outreach to underserved/underrepresented communities. Admin-DEI Ongoing Ongoing The Office of DEI along with additional departments at the City will be hosting a Candidate Education Offering in November 2025 which will recur on a biennial basis, alternating with the Community Academy. DEI Strengthen Public Access and Engagement through Transformational Strategies 2.7 c. Complete training for applicable staff on the City's updated Public Engagement & Noticing (PEN) to ensure diverse participation. Admin-DEI Ongoing Ongoing The Public Engagement and Noticing Manual has been updated and initial trainings completed. The training, which was reviewed by the Office of DEI, will continued to be offered by Communications staff. 2.8 Community Education & Programming Page 178 of 349 MCG Strategy Strategic Approach # Task/ Action Responsible Department(s) Original Completion Date Updated Completion Date StatusNotes DEI Equity & Inclusion in Budgeting, Planning, Programming & Policymaking 2.8 a. Review and embed DEI language into existing policies and procedures, codes of conduct within facilities, parks, programs, events, and rentals for services provided to the community. Admin-DEI Ongoing Ongoing The Office of DEI is utilizing their DEI Support Request Form to receive policy/procedure review requests. Thus far, the Office has reviewed four internal policies and has met with the Swim Center staff about their specific procedures and how to ensure inclusivity for all. This has been operationalized within the Office of DEI and will continue to be part of our ongoing work. DEI Equity & Inclusion in Budgeting, Planning, Programming & Policymaking 2.8 b. Include DEI Manager Financial Planning Steering Committee meetings.Admin-DEI Ongoing Ongoing DEI Manager has been included in Financial Planning Steering Committee meetings. Operationalized into workflow. DEI Equity & Inclusion in Budgeting, Planning, Programming & Policymaking 2.8 c. Edit existing and create new policies and procedures that reflect a DEI lens for internal processes to ensure all City Departments support the DEI MCG. Admin-DEI Ongoing Ongoing The Office of DEI is utilizing their DEI Support Request Form to receive policy/procedure review requests. Thus far, the Office has reviewed four internal policies and created new guidance documents for the use of pronouns and the City's Land Acknowledgment. This has been operationalized within the Office of DEI and will continue to be part of our ongoing work. DEI Equity & Inclusion in Budgeting, Planning, Programming & Policymaking 2.8 d. Provide financial assistance to qualified families through City funded scholarships for youth related programs such as: before/after-school childcare, spring break & summer camps, swim lessons, and after-school sport programs. Parks & Rec Ongoing Ongoing In FY 2024–25, the total fee reduction budget was $30,406, which included carryover from FY 2023-24. $33,500 in fee reduction scholarships were awarded to 38 qualifying children. $25,000 is included in the 2025–27 Financial Plan to continue supporting this program. This has been operationalized in partnership with Parks & Rec. 3.1 Implement Housing Element HH Housing Element Implementation 3.1 d. Conduct a Study Session with the City Council to identify needs and opportunities across the housing spectrum, including various types of transitional and supportive housing options. CDD FY24 Q3 FY24 Q3 City Council Study Session was held on March 5, 2024 HH Housing Element Implementation 3.1 e. Develop a scope of work for possible funding as part of the 2023-25 Financial Plan Supplement to update the City's parking requirements in consideration of best practices that support housing production. Strategies may include lowering parking minimums, establishing parking maximums, reducing parking requirements in areas close to services and transit facilities, and other proven strategies. CDD; PW Transportation; PW Parking Services FY24 Q3 FY25 Q2 Staff developed a scope of work for a parking study as described and worked with several consultants to understand the budget needed. It was estimated that the project would cost more than $200,000. Due to this cost, the project did not move forward during the Financial Plan supplement process. HH Housing Element Implementation 3.1 f. Implement Below Market Rate Housing best practices including leveraging affordable housing fund revenues, down payment assistance programs, streamlined processing of loan documents, and updated policies and procedures. CDD; Attorney FY24 Q4 FY25 Q1 The City updated its Below Market Rate Housing Standards in June 2025. This udpate brought City processes more in-line with industry best practice to ensure Below Market Rate housing units are sold and rented to eligible buyers and renters. In addition, the City received Prohousing Incentive Funds from the State and have obligaged and provided direct assistance of these funds towards the Beacon Studios, Waterman Village and Monterey Senior housing projects. Page 179 of 349 MCG Strategy Strategic Approach # Task/ Action Responsible Department(s) Original Completion Date Updated Completion Date StatusNotes HH Housing Element Implementation 3.1 a. Initiate a missing middle housing program that enables "house-scale" multi-family housing opportunities (duplex, tri-plex, bungalow court, etc.) in neighborhoods where existing infrastructure (e.g. arterial and collector streets) can support additional infill and intensification and promote complete neighborhoods. CDD; Attorney FY25 Q4 FY25 Q3 Ordinance amending Title 16 and Title 17 of the municipal code addressing state legislature updates on accessory and junior accessory dwelling units, and urban lot splits was adopted in March 2025. This ordinance was processed in order to facilitate the development of "missing middle" housing units. HH Housing Element Implementation 3.1 b. Initiate an update to the Margarita Area Specific Plan to include more housing options of all types (affordable, multi-family, mixed-use) on undeveloped land, and work with property owners on a plan for the completion of the Prado Road extension to Broad Street. CDD; PW Transportation FY25 Q4 FY25 Q4 An update to the MASP has been initiated. City staff continue to work with the consultant on updating the Margarita Area Specific Plan. Currently staff is reviewing potential residential density scenarios for the remaining developable areas within the MASP. HH Housing Element Implementation 3.1 c. Initiate an update to the Airport Area Specific Plan to allow mixed-use residential development, where appropriate and consistent with the County Airport Land Use Plan CDD; Attorney FY25 Q4 FY25 Q4 City staff initiated and Council adopted an amendment to the Airport Area Specific Plan on June 17, 2025 that allows mixed-use development with a Minor or Conditional Use Permit based on specific findings. 3.2 Implement Inclusionary Housing Ordinance HH Homelessness Response Strategic Plan Implementation 3.2 a. Work collaboratively with County and key stakeholders to coordinate regional encampment and street outreach, including an expanded hotel voucher program to ensure a bridge for temporary emergency shelter CDD; Attorney FY24 Q4 FY25 Q4 A hotel voucher program is funded by the City and received expanded funding in the 25-27 Financial Plan. The program continues to be administered by CAPSLO to address overflow needs at the 40 Prado Homelessness Services Center. Encampment outreach and cleanups are coordinated between the City, the County and Caltrans as well as for critical encampments on private property. HH Homelessness Response Strategic Plan Implementation 3.2 b. Increase homelessness response communications, resource sharing, and education, including increased public use of Ask SLO app CDD; Admin FY24 Q4 FY25 Q4 The City continually communicates information to the public regarding current practice to address homeless encampments and consistency with June 2024 Supreme Court rulings and 2024 and 2025 orders by the California Governor. In June 2024, the City conducted a Community Forum and distributed a resource guide and FAQs found on the City's website. The Homelessness Response team continually responds to public inquiries via AskSLO. HH Homelessness Response Strategic Plan Implementation 3.2 c. Expand implementation of digital encampment management tool internally and for potential countywide use or explore using other countywide systems shared with other regional partners. CDD; PW; P&R; PD; Fire FY24 Q4 FY25 Q4 The City implements Compassionate Assistance Mitigation and Prevention (CAMP) Standards as a framework to help reduce the negative impacts of homelessness and coordinates cleanup activities through an internal management tool (Survey 123). Implementation of Licensed Psychiatric Technicians (LPT)s with CAT and MCU have improved access for City outreach workers with regional platforms in coordination with program goals. Page 180 of 349 MCG Strategy Strategic Approach # Task/ Action Responsible Department(s) Original Completion Date Updated Completion Date StatusNotes HH Homelessness Response Strategic Plan Implementation 3.2 d. Leverage additional funding from other partner agencies for Mobile Crisis Unit (MCU) program, and Community Action Team (CAT) and service expansion; develop sustainable safe parking programs; and pilot additional transitional shelter programs with regional partners CDD; PD; Fire FY24 Q4 FY25 Q3 The City amended 40 Prado's Conditional Use Permit in January 2024 to allow increased capacity for their safe parking program from seven to twelve spaces. In late 2024, the City obtained homeless outreach funds from the County and paired those funds with opioid settlement funds to fund a Licensed Psychiatric Technician contracted from County Behavioral Health to assist the Community Action Team (CAT)'s efforts. In January of 2025, the City permitted a new rotating overnight safe parking pilot program administered by CAPSLO for twelve additional spaces at five host site locations, four in the City and one in the County unincorporated area. HH Homelessness Response Strategic Plan Implementation 3.2 e. Support County and regional partners in pursuing and implementing funding resources as appropriate given the City's role for services, and transitional and permanent supportive housing, including Encampment Resolution Funding and Project Homekey grants CDD; Admin FY24 Q4 FY25 Q4 The Calle Joaquin Homekey (PSHH partner) closed escow for acquisition on September 13, 2024 for 75 units of supportive housing and are in progress for tax credit financing award to further improve project amenities is projected to open 2026; and the supportive housing units at the Anderson Hotel that were at- risk of loss (HASLO partner), reopend in September 2024. The City continues collaboration with SLO County on transitional and supportive units. For example, the Welcome Home Village project, which broke ground fall of 2025. HH Homelessness Response Strategic Plan Implementation 3.2 f. Continue to develop the City's Safe Housing Outreach and Education Program, including preparation of a Council Memo on options for protecting renters, including homelessness prevention strategies. Attorney; CDD FY24 Q4 FY25 Q1 Public Memorandum on Renter Protections Published online. HH Homelessness Response Strategic Plan Implementation 3.2 g. Monitor and update the two-year Homelessness Response Strategic Plan to align with Countywide Plan to Reduce Homelessness, other regional and state opportunities, and in advance of next City financial plan CDD FY25 Q2 FY25 Q3 Council Agenda Report: Update on implementation of the Homelessness Response and Strategic Plan. Adoption of the FY 2024-26 Strategic Plan. 3.3 Below Market Rate Portfolio Management HH Environmental Clean-up in Creeks and Open Space 3.3 a. Environmental clean-ups in creek and open space areas associated with abandoned personal property and trash. (Funding approved on March 7, 2023) P&R FY25 Q4 Ongoing Regular encampment clean ups occur through coordination of homelessness response field team representatives, implementation of the CAMP standards and responding to ASK SLO requests. HH Environmental Clean-up in Creeks and Open Space 3.3 b. Environmental clean-ups in City Parks and public spaces associated with abandoned personal property and trash. (Funding approved on March 7, 2023) PW FY25 Q4 Ongoing Regular encampment clean ups occur through coordination of homelessness response field team representatives, implementation of the CAMP standards and responding to ASK SLO requests. 3.4 Financial Management Page 181 of 349 MCG Strategy Strategic Approach # Task/ Action Responsible Department(s) Original Completion Date Updated Completion Date StatusNotes HH Public Safety 3.4 b. Implement the new Community Service Officer program over the next fiscal year to ensure effectiveness and improvements in quality of life surrounding homelessness issues in the downtown (funding approved on March 7, 2023) PD FY24 Q1 FY24 Q1 The department increased the total number of Community Service Officers from three to six. Expanding the CSO program has enabled the department to provide additional focus efforts in the downtown and still provide ongoing support to the City. The department's CSO program is robust and an effective use of personnel to support Patrol, Traffic Safety and CAT. HH Public Safety 3.4 a. Maintain SLOPD bike patrol program as staffing allows PD FY25 Q4 Ongoing The department has four bicycle officers and one sergeant assigned to downtown. Due to persistent staffing shortages due to retirements and long academy and field training timelines, many specialty positions at the department are vacant to maintain patrol officer staffing. The department has been able to maintain a consistent downtown bicycle staffing of three Officers and one Sergeant. This approach has affirmed the commitment of dedicated Officers downtown on bicycles, while still allowing one addiitonal Officer to be used for critical patrol staffing needs. As additional Officers complete the academy and training programs, the department will look to fill the vacant bicycle Officer position. 4.1 Implement the Climate Action Plan and Lead by Example 2023-25 Work Plans CA, OS, ST Implement the Climate Action Plan and Lead by Example 2023-25 Work Plans 4.1 h. Continue to monitor impacts to Municipal Code 8.11 (All-Electric New Buildings), and if necessary return to Council with an alternative approach to achieving the City's climate action goals as they relate to new buildings. Administration / CDD FY24 Q4 Complete Residential and Non-residential Projects must comply with both the statewide energy code and local energy reach code. The compliance process for the clean energy program requirements on all projects submitting for permit on or after January 1st, 2023 are available online. CA, OS, ST Implement the Climate Action Plan and Lead by Example 2023-25 Work Plans 4.1 j. Continue SB 1383 implementation by developing an inspection and enforcement program and complying with procurement requirements for organic waste and paper as called for in CAP Circular Economy task 1.1.A and 1.1.B. Utilities Ongoing Ongoing City staff and the IWMA continue to partner with SB1383 enforcement. The City is in compliance with the requirements and will continue to monitor compliance. This action is included as a task in the 2025-27 MCG. CA, OS, ST Implement the Climate Action Plan and Lead by Example 2023-25 Work Plans 4.1 k. Continue to support the IWMA on facilitating the City's edible food recovery programs as called for in CAP Circular Economy task 1.1.C, 1.2.A, and 1.3.A. Utilities Ongoing Ongoing The City continues to support the IWMA with establishing food recovery programs. This action is included as a task in the 2025- 27 MCG. CA, OS, ST Implement the Climate Action Plan and Lead by Example 2023-25 Work Plans 4.1 a. Continue to install electric vehicle chargers and replace fleet vehicles as needed with all-electric alternatives as called for by CAP Lead by Example task 1.1.A . Public Works Ongoing Ongoing The City continues to install electric chargers as planned in the CIP and continue to purchase electric vehicles consistent with the City's vehicle purchasing policy. This action is included as a task in the 2025-27 MCG. CA, OS, ST Implement the Climate Action Plan and Lead by Example 2023-25 Work Plans 4.1 b. Continue to electrify the bus fleet as called for by CAP Lead by Example task 1.1.A.Public Works Ongoing Ongoing The City continues to procure, receive, and put into service electric buses and planned in the CIP and the Short Range Transit Plan. This work is operationalized as standard practice. CA, OS, ST Implement the Climate Action Plan and Lead by Example 2023-25 Work Plans 4.1 c. Complete installation of solar panels at the City's Bus Yard, Fire Station 1, and Sinsheimer Pool as called for by CAP Lead by Example task 1.1.A. Public Works / Administration FY25 Q2 FY26 Q3 Staff anticipate completing the Cultural Arts District solar array in early 2026 and the remaining projects in mid-2026. More detail provided in associated write-up. Page 182 of 349 MCG Strategy Strategic Approach # Task/ Action Responsible Department(s) Original Completion Date Updated Completion Date StatusNotes CA, OS, ST Implement the Climate Action Plan and Lead by Example 2023-25 Work Plans 4.1 e. Apply the "Sustainable SLO" mark to City infrastructure and assets and conduct a general awareness outreach program as funding and staff resources allow, as called for by CAP Lead by Example task 1.1.B. Administration Ongoing Ongoing Staff continue to implement the Sustainable SLO mark and branding initiative, which is present and visible across a variety of City assets ranging from fleet vehicles, transit, and EV charging, to Open Space trailhead locations. This work is operationalized as standard practice. CA, OS, ST Implement the Climate Action Plan and Lead by Example 2023-25 Work Plans 4.1 f. Provide ongoing support for Central Coast Community Energy Policy and Operations Board Members, and engage in staff level policy and program development, as called for by CAP Clean Energy task 1.1.A Administration Ongoing Ongoing Staff continued to support the City's Policy and Operations Board members during the first half of the fiscal year, including as the delegated alternative Operations Director, until the transition at the end of the calendar year to the City of Morro Bay, per the MOU. Staff continue to track board meeting agendas, meet regularly with the CEO, and interact at the staff-to-staff level on policy and program development, as well as pursue all program funding and incentives that the City is eligible for. This work is operationalized as standard practice. CA, OS, ST Implement the Climate Action Plan and Lead by Example 2023-25 Work Plans 4.1 g. Pursue funding, and if feasible, create the "Green and Healthy Buildings” service to educate the community and connect building owners with resources, federal funding, incentives, financing, contractors, and streamlined permitting as called for by CAP Green Buildings Task 2.1.B, 2.1.C, and 2.1.D, and CASE Program HE-4.7. Administration / CDD Ongoing Ongoing Staff are implementing the Department of Energy’s Buildings Upgrade Prize initiative, with a focus on mobile and manufactured homes. In partnership with CAPSLO, four households have already had water heating and space conditioning systems electrified, and a white paper on the outcomes of this pilot will be published shortly. CAPSLO is now installing an additional 10–15 electric water heaters in mobile and manufactured homes. In parallel, the City is advocating to the California Energy Commission to establish a statewide mobile home electrification program in San Luis Obispo, which could scale retrofits to an additional 50–100 units. Staff are also advancing complementary measures to support electrification more broadly, contributing to the increasing number of retrofits highlighted in the July study session on building retrofit policy. This action is included as a task in the 2025-27 MCG. CA, OS, ST Implement the Climate Action Plan and Lead by Example 2023-25 Work Plans 4.1 I. Conduct a study session, and pending Council direction, develop an equitable framework for cost effective building electrification retrofit policies, with an initial focus on additions and alterations, as called for by CAP Green Buildings Task 2.1.E. Administration / CDD Ongoing FY26 Q1 Study sessions conducted in 2023 and July 2025. Staff have received necessary feedback and are currently working on implementing Council's strategic direction. 4.2 Sustain, Manage, and Enhance the City's Greenbelt and Make Progress on Planting 10,000 trees by 2035 CA, OS, ST Sustain, Manage, and Enhance the City's Greenbelt and Make Progress on Planting 10,000 trees by 2035 4.2 a. Actively implement opportunities to purchase open space lands and permanent land conservation agreements in furtherance of the City's Greenbelt Protection Program as called for by CAP Natural Solutions task 1.1.A. Administration Ongoing Ongoing Staff are actively pursuing priority land conservation opportunities in accordance with Council direction. This action is included as a task in the 2025-27 MCG. Page 183 of 349 MCG Strategy Strategic Approach # Task/ Action Responsible Department(s) Original Completion Date Updated Completion Date StatusNotes CA, OS, ST Sustain, Manage, and Enhance the City's Greenbelt and Make Progress on Planting 10,000 trees by 2035 4.2 b. Complete installation of adopted trail systems at the Irish Hills Natural Reserve and at Miossi Open Space.Parks and Recreation Ongoing Ongoing The Bog Thistle extension and King Trail re-alignment and repair were completed. Additional new trails at both sites remains in accordance with the approved Conservation Plans for these properties. This action is included as a task in the 2025-27 MCG. CA, OS, ST Sustain, Manage, and Enhance the City's Greenbelt and Make Progress on Planting 10,000 trees by 2035 4.2 c. Identify and implement trail alignment revisions, if feasible, and other solutions to reduce erosion and wet weather closures and address trail user safety and enjoyment at Reservoir Canyon Natural Reserve. Parks and Recreation Ongoing Ongoing The re-alignment of the Firefighter Trail is under construction and members of the public are currently able to use the lower elevation portions of the trail. Significant repair and stabilization work also occurred in response to the Lizzie Fire. This action is included as a task in the 2025-27 MCG. CA, OS, ST Sustain, Manage, and Enhance the City's Greenbelt and Make Progress on Planting 10,000 trees by 2035 4.2 d. Continue Open Space education activities including the "hikes with experts" series, Junior Ranger Camp, and ongoing public information and programming, with emphasis on equity and equitable access. Parks and Recreation / Administration Ongoing Ongoing Junior Ranger Camp held two sessions during both summer seasons of the Financial Plan, as well as Ranger led educational hikes. This action is included as a task in the 2025-27 MCG. CA, OS, ST Sustain, Manage, and Enhance the City's Greenbelt and Make Progress on Planting 10,000 trees by 2035 4.2 e. Continue implementation by Ranger Service staff of all Open Space maintenance activities including establishing a replacement schedule for Open Space trailhead improvements, as well as replacement or repair of Open Space fencing currently in disrepair, all as set forth in the adopted Open Space Maintenance Plan Parks and Recreation Ongoing Ongoing Ranger Service continue to provide regular maintenance and repairs throughout the City's open space system. Two large bridge facilities were replaced at Irish Hills, and large erosion and drainage project was completed at Miossi Open Space, and resurfacing the main trail at Cerro San Luis at the Marsh Street trailhead was completed. This work is operationalized as standard practice. CA, OS, ST Sustain, Manage, and Enhance the City's Greenbelt and Make Progress on Planting 10,000 trees by 2035 4.2 f. Continue ongoing Ranger Service patrol of Open Space areas ensuring compliance with the City Open Space regulations, the safety of users, and protection of natural resources values and functions. Parks and Recreation Ongoing Ongoing Regular Ranger Service patrol, monitoring, and education with members of the public was present throughout the financial plan period. This work is operationalized as standard practice. CA, OS, ST Sustain, Manage, and Enhance the City's Greenbelt and Make Progress on Planting 10,000 trees by 2035 4.2 g. Implement priority projects at Righetti Hill Open Space consistent with the Conservation Plan (if adopted in May 2023). Parks and Recreation Ongoing Complete Primary implementation of the Righetti Hill Open Space Conservation Plan was completed with the creation of two trail systems, culminating with a ribbon cutting ceremony in May 2025. CA, OS, ST Sustain, Manage, and Enhance the City's Greenbelt and Make Progress on Planting 10,000 trees by 2035 4.2 h. Continue to work with community groups on tree planting in creeks and open space areas toward the goal of 10,000 trees by the year 2035 as called for in CAP Natural Solutions task 2.1.A. Administration / Parks and Recreation Ongoing Ongoing Staff have continued to work with ECOSLO and Rotary de Tolosa to implement tree planting, as well as community volunteers. Arbor Day at Sinsheimer Park also resulted in twenty new trees planted along the Railroad Safety Trail, as well as new community relationships. This action is included as a task in the 2025-27 MCG. Page 184 of 349 MCG Strategy Strategic Approach # Task/ Action Responsible Department(s) Original Completion Date Updated Completion Date StatusNotes CA, OS, ST Sustain, Manage, and Enhance the City's Greenbelt and Make Progress on Planting 10,000 trees by 2035 4.2 i. Continue to expand climate-informed maintenance practices in the Greenbelt through external funding and partnerships, and conduct ongoing monitoring on carbon sequestration results and other co-benefits for existing and potential future projects, as called for in CAP Natural Solutions task 2.1.B. Administration Ongoing Ongoing Staff implemented a series of practices at Johnson Ranch Open Space utilizing grant funds from Point Blue Conservation Science and the California Wildlife Conservation Board; these included installation of series of "beaver dam analogs" in Dry Creek, native riparian tree and shrub installation, and native perennial bunchgrass restoration. Additional restoration projects include cultural burns and regenerative grazing. The City continues to actively pursue external funding to expand these efforts. This action is included as a task in the 2025-27 MCG. CA, OS, ST Sustain, Manage, and Enhance the City's Greenbelt and Make Progress on Planting 10,000 trees by 2035 4.2 j. Continue to implement rehabilitation efforts throughout the City's open space network where storm damage has occurred to trails, access roads, and other open space infrastructure. Parks and Recreation / Administration Ongoing Complete Storm damage repairs throughout the open space system are complete , as well as repairs and replacements at Bowden Ranch where the Lizzie Fire occurred. CA, OS, ST Sustain, Manage, and Enhance the City's Greenbelt and Make Progress on Planting 10,000 trees by 2035 4.2 k. Continue partnership with City Farm SLO to install site security and access measures and to implement California Farmland Conservancy Program grant scope of work. Administration / Parks and Recreation Ongoing Complete The California Farmland Conservancy Program grant scope of work was completed, including fencing, gates, irrigation, restoration and native planting along Prefumo Creek. All weather road surfacing was also completed allowing for four-season farming and site access / safety improvements. 4.3 Preserve and Enhance Convenient and Equitable Alternative and Sustainable Transportation Options CA, OS, ST Preserve and Enhance Convenient and Equitable Alternative and Sustainable Transportation Options 4.3 a. Active Transportation Plan (ATP) Tier 1 Network - Higuera Complete Street Project: Complete final design and construction of active transportation and safety improvements along Higuera Street corridor from Marsh St. to Los Osos Valley Rd. Public Works FY25 Q3 FY27 Q4 Project is in final design phase and will be brought to Council early 2026 to approve design and advertise for construction. Construction expected to begin summer 2026 and last up to one year CA, OS, ST Preserve and Enhance Convenient and Equitable Alternative and Sustainable Transportation Options 4.3 b. Active Transportation Plan (ATP) Tier 1 Network - South/King Crossing: Complete design and construction of a new protected bicycle/pedestrian crossing at the intersection of South St. & King St., improving access to Meadow Park, Hawthorne Elementary, and existing active transportation routes. Public Works FY25 Q3 FY27 Q2 Project was brought to and approved by Council on 10/7/25, authorizing construction. CA, OS, ST Preserve and Enhance Convenient and Equitable Alternative and Sustainable Transportation Options 4.3 c. Active Transportation Plan (ATP) Tier 1 Network - Foothill Complete Street Project: Continue design of active transportation and safety improvements along the Foothill Blvd. corridor between the western city limits and California Blvd., with goal to have shovel-ready project for construction in FY2025-27. Public Works FY25 Q1 FY27 Q2 Project delayed due to staffing vacancies and need for further review for emergency vehicle and evacuation considerations. Public outreach phase planned to start late 2025, with final corridor plan targeted for City Council consideration by FY26Q2. CA, OS, ST Preserve and Enhance Convenient and Equitable Alternative and Sustainable Transportation Options 4.3 d. Active Transportation Plan (ATP) Tier 1 Network - California/Taft Roundabout: Complete final design and right-of-way acquisition for new roundabout at the California Blvd. & Taft St. intersection, with goal to have shovel-ready project for construction in FY2025-27. Public Works FY25 Q4 FY26 Q4 On September 16, 2025, City Council approved a Resolution of Necessity to initiate eminent domain proceedings to acquire necessary right-of-way for the project. Pending schedule with legal proceedings, project is targeted for summer 2026 construction start. Page 185 of 349 MCG Strategy Strategic Approach # Task/ Action Responsible Department(s) Original Completion Date Updated Completion Date StatusNotes CA, OS, ST Preserve and Enhance Convenient and Equitable Alternative and Sustainable Transportation Options 4.3 e. Active Transportation Plan (ATP) Tier 1 Network - Paving Project Complete Street Elements: Implement complete street and safety improvements as part of 2023 and 2024 summer paving projects as guided by the Active Transportation Plan and Traffic Safety/Vision Zero reports. Public Works Ongoing Ongoing 2024 summer paving project complete, 2025 paving project currently in construction. This action is included as a task in the 2025-27 MCG. CA, OS, ST Preserve and Enhance Convenient and Equitable Alternative and Sustainable Transportation Options 4.3 f. Active Transportation Plan (ATP) Tier 1 Network - Railroad Safety Trail (Orcutt to Tiburon) Connection: Initiate design and environmental review for a project that will complete the gap in the Railroad Safety Trail in the Orcutt Area between Tiburon Dr. and Orcutt Rd., including replacement of the narrow culvert on Bullock Lane and pedestrian/bicycle safety improvements at the Orcutt Road/Union Pacific Railroad Crossing. Public Works FY25 Q4 Deferred Please see explanation in detailed write-up. CA, OS, ST Preserve and Enhance Convenient and Equitable Alternative and Sustainable Transportation Options 4.3 g. Active Transportation Plan (ATP) Tier 1 Network - Foothill/California Railroad Crossing Improvements: Complete design and initiate construction of federally- funded pedestrian safety improvements at railroad crossing. Public Works FY25 Q4 FY27 Q4 Project delays due to ongoing coordination and delayed processing with UPRR and CPUC. Designs at 90% complete. With UPRR right-of-way agreements and utility relocations planned through 2026, construction start currently targeted for summer 2027. CA, OS, ST Preserve and Enhance Convenient and Equitable Alternative and Sustainable Transportation Options 4.3 h. Active Transportation Plan (ATP) Tier 1 Network - Prado Creek Bridge Replacement: Complete design of new bridge, including sidewalks, protected bike lanes, and additional vehicular lanes to accommodate existing and future traffic demand. Includes reconstruction of S. Higuera/Prado intersection with additional capacity and protected intersection features to improve safety for pedestrians and cyclists. Public Works Ongoing Ongoing Design at 90% complete, pending right-of-way acquisition and utility relocations. Construction start estimated at summer 2027. CA, OS, ST Preserve and Enhance Convenient and Equitable Alternative and Sustainable Transportation Options 4.3 i. Active Transportation Plan (ATP) Tier 1 Network - Prado/US 101 Interchange: Complete project approval and environmental document phase of project, and initiate design phase for new interchange, which includes extension of Prado Road over US 101 to Froom Ranch Way, with new northbound on/off-ramps, four auto lanes, center median/left turn lanes, sidewalks and protected bike lanes. Includes realignment of Elks Lane and signalization of the Prado/Elks intersection. Public Works Ongoing Ongoing Project in first phase of plans, specifications and estimate (PS&E) development, focusing on value analysis to identify cost-reducing strategies. Ability to advance project will depend on (a) ability to reduce scope/cost of project and (b) success with outside State/Federal grant pursuits. Council to review value engineering analysis in November 2025. CA, OS, ST Preserve and Enhance Convenient and Equitable Alternative and Sustainable Transportation Options 4.3 j. Vision Zero Implementation - Update annual Traffic Safety Report to evolve into a 5-Year Vision Zero Action Plan and continue ongoing implementation of traffic safety projects and programs, focusing efforts on the City's high crash/injury network. Public Works Ongoing Ongoing Adoption of Final Vision Zero Action Plan delayed to Spring 2026 due to desire for additional analysis of emergency vehicle and evacuation considerations. Pending completion of Citywide Emergency Evacuation Study and analysis of current emergency response corridors and times, both led by SLO Fire. Page 186 of 349 MCG Strategy Strategic Approach # Task/ Action Responsible Department(s) Original Completion Date Updated Completion Date StatusNotes CA, OS, ST Preserve and Enhance Convenient and Equitable Alternative and Sustainable Transportation Options 4.3 k. Transit Innovation Study Implementation: Begin planning implementation of strategies recommended in Final Transit Innovation Study, including incorporation of near-term strategies as part of planned SLO Transit/RTA Short Range Transit Plan update, as called for in CAP Connected Community Task 4.2.A and in the APMP Strategies 1.C. Public Works / Administration Ongoing Ongoing All High-Priority recommendations of the Transit Innovation Study are in varying phases of implementation as well as several of the Medium-Priority recommendations. These recommendations were also included in the Short-Range Transit Plan update that was approved by Council in April 2025. CA, OS, ST Preserve and Enhance Convenient and Equitable Alternative and Sustainable Transportation Options 4.3 l. Reassess the viability of launching a citywide bikeshare system, with ongoing coordination with Cal Poly as called for in CAP Connected Communities Task 2.2.A and the APMP strategy 1.B.1. Solicit potential bikeshare system operators if staffing resources allow and this can be done without diverting resources from delivering priority active transportation infrastructure projects. Administration FY25 Q4 FY25 Q4 The City issued an RFP for a no-cost bike share but did not receive fully responsive "no cost to the City" proposals. Staff continue to monitor and evaluate options to deliver a bikeshare program in collaboration with Cal Poly. CA, OS, ST Preserve and Enhance Convenient and Equitable Alternative and Sustainable Transportation Options 4.3 m. Public EV Chargers - Enable public EV charger deployment on City property, support EV charger installation on private property, and deploy EV chargers in low-income areas of the City as called for in CAP Connected Community Tasks 6.1.A, 6.1.B, and 6.1.D. Administration Ongoing Ongoing The City is in the process of installing 41 electric vehicle charging stations at the Cultural Arts District Parking Structure. In addition, the City, in a public-private partnership with Valta, has made 8 DC Fast Charging ports available on City property, with 8 more expected in 2026. 4.4 Increase Community Resilience CA, OS, ST Increase Community Resilience 4.4 f. Initiate the development of Wildland-Urban-Interface Defensible Space and Home Hardening Program as called for in CASE program FI-5.15. Fire FY24 Q4 FY26 Q4 Due to the significant expansion of parcels in the Wildland-Urban Interface (WUI), the City is currently using its resources to prepare for adoption of the WUI Code, including the completion of a study session with Council on October 7, 2025, and introduction of the WUI Code ordinance in November 2025. CA, OS, ST Increase Community Resilience 4.4 a. In coordination with Zone 9, convene a working group to assess the current creek flow monitoring system and provide recommendations for enhancements, as called for in CASE program FL-3.13. CDD / Utilities / Admin / PW / Fire Ongoing Ongoing County staff received grant funding for a new stream gage located at San Luis Bay Drive and installation will be with support from USGS beginning in 2026. City and County staff will also begin design work on a new stream gage at the Marsh Street Bridge. This gage will replace the current sonar gage and be more resilient under high flows. CA, OS, ST Increase Community Resilience 4.4 b. Conduct a study session to consider options for funding stormwater and / or creek maintenance and flood preparedness in support of CASE programs 3.9, 3.10, 3.11, 3.12, 3.13, and 3.14. Utilities / Public Works / Administration FY25 Q4 FY25 Q4 This item was proposed to occur in FY 2026 Q2. However, staff recommend modifying this timeframe to FY 2027 Q3 to better align with timelines for other projects. CA, OS, ST Increase Community Resilience 4.4 d. Evaluate opportunities to integrate climate considerations in the City's Engineering Standards and Specifications as called for in CASE program MH-1.6. Public Works Ongoing Ongoing The City Standards will be updated in Fall 2025 to reference the most current version of the State of California construction standards and details. This will bring the City current with State's regulatory framework for climate action construction specifications and details. For example, the new standards permit the use of low-carbon content concrete through increase limestone content in cement. Page 187 of 349 MCG Strategy Strategic Approach # Task/ Action Responsible Department(s) Original Completion Date Updated Completion Date StatusNotes CA, OS, ST Increase Community Resilience 4.4 e. Provide post-disaster recovery resources and emergency preparedness education to vulnerable community members as called for in CASE program MH- 1.10. Fire / Community Development Ongoing Ongoing SLOFD staff have engaged the community through public meetings, neighborhood information sessions, media interviews, and social media campaigns to promote disaster preparedness and response, with a focus on residents with health or mobility challenges and those on low or fixed incomes. Emergency Management is also partnering with local volunteer organizations to strengthen post-disaster response planning for residents, unhoused individuals, college students, and their pets. This work is operationalized as standard practice. CA, OS, ST Increase Community Resilience 4.4 g. Monitor funding sources and if feasible pursue a Climate Resilience Hub planning grant with community partners, as called for in CASE program MH-1.8. Administration Ongoing Ongoing The City was not awarded funding via the primary statewide funding source for Resilience Hubs. A second round of funding is expected to open in early 2026. CA, OS, ST Increase Community Resilience 4.4 h. In partnership with Zone 9, seek funding to initiate the Waterway Management Plan update to incorporate climate-informed flood risk as called for in CASE program FL-3.7. Initial work in this Financial Plan period is envisioned to include identifying and securing funding, developing a project scope, and drafting a request for proposals. Administration FY25 Q4 FY25 Q4 The updated reimbursement agreement for the Zone 9 partnership between the City and the County was approved by the City Council and County Board of Supervisors in August and September, respectively. Staff are developing a scope of work and procurement strategy for baseline studies and flood risk modeling to inform the Waterway Management Plan Volume 1 Update. This work effort will continue as a task in the 2025-27 Financial Plan Major City Goal Work Program. CA, OS, ST Increase Community Resilience 4.4 i. Develop an Urban Creeks Vegetation Management Plan as called for in CASE program FL-3.10.Fire / Administration Ongoing Ongoing Grant funds from the State Coastal Conservancy have been received and staff are working with a consultant on the development of the Vegetation Management Plan, anticipated to be complete in early 2027. CA, OS, ST Increase Community Resilience 4.4 j. Incorporate Traditional Ecological Knowledge into open space management decisions as called for in CASE program OP-7.2. Administration Ongoing Ongoing The City continues to partner with the yak titʸu titʸu yak tiłhini to revive traditional ecological knowledge on City Open Space properties including the use of cultural fire (with burns occurring in November of 2025) and restoration of native grasslands. This action is included as a task in the 2025-27 MCG. CA, OS, ST Increase Community Resilience 4.4 k. Implement the Mid-Higuera Bypass Project.Public Works / Administration Ongoing FY25 Q3 Mid-Higuera Bypass Project initial phases are complete, project wrap up is slated for Spring of 2026. This will be followed by ongoing maintenance and performance assessment. CA, OS, ST Increase Community Resilience 4.4 l. Implement the Laguna Lake Dredging and Sediment Management Project. Public Works / Administration Ongoing Ongoing Staff is working on environmental permitting and project construction was moved to Year 4 of the 10 Year CIP plan adopted with the 2025-27 Financial Plan. CA, OS, ST Increase Community Resilience 4.4 m. Implement Silt Removal Projects from Priority Creek Locations. Administration / Public Works Ongoing Ongoing Staff will be removing accumulated sediment at Larkspur and Goldenrod in 2026 while working with the permitting agencies to amend existing permits for expanded work areas. CA, OS, ST Increase Community Resilience 4.4 n. Implement existing Community Wildfire Protection Plan and initiate focused update in 2024. Fire Ongoing FY25 Q4 Vegetation Management Plan is underway with an update to the CWPP being evaluated for viability under the existing agreement. Page 188 of 349 MCG Strategy Strategic Approach # Task/ Action Responsible Department(s) Original Completion Date Updated Completion Date StatusNotes 4.5 Continue to Build City and Community Capacity for Transformational Climate Action CA, OS, ST Continue to Build City and Community Capacity for Transformational Climate Action 4.5 f. Conduct GHG Emissions Inventory and Biennial CAP and Lead by Example Progress Reports as called for in CAP Administrative Action 2 and Lead by Example Plan Administrative Action 2. Administration FY24 Q3 FY24 Q4 The Lead by Example biennial progress report was completed and presented to Council in May 2024. https://opengov.slocity.org/WebLink/DocView.aspx?id=193227& dbid=0&repo=CityClerk CA, OS, ST Continue to Build City and Community Capacity for Transformational Climate Action 4.5 i. Complete steps and present recommendations and options to maximize the reuse of wastewater per the "Road Map" presented to the City Council. Utilities Ongoing FY23 Q3 Completed and presented to Council on February 7, 2023. Link to CAR: https://opengov.slocity.org/WebLink/DocView.aspx?dbid=0&id= 172564&repo=CityClerk&utm_source=chatgpt.com&cr=1 CA, OS, ST Continue to Build City and Community Capacity for Transformational Climate Action 4.5 a. Participate in the Cal Poly Climate Corps Fellowship program to build staff capacity as called for in the CAP. Administration / CDD / Public Works / Utilities Ongoing Ongoing The City participated in the Fellowship program, with 10 total fellows participating in 2024-25 alone. This work is operationalized as standard practice. CA, OS, ST Continue to Build City and Community Capacity for Transformational Climate Action 4.5 b. Manage the Green Team to Support Lead by Example, Climate Adaptation and Safety Element of General Plan, and Climate Action Plan implementation, as called for in CASE program MH-1.11 and OP-7.9. Administration Ongoing Ongoing Staff conducted Green Team meetings as anticipated, including leveraging the Green Team to co-author the Lead by Example update. This work is operationalized as standard practice. CA, OS, ST Continue to Build City and Community Capacity for Transformational Climate Action 4.5 c. Continue to support and empower community collaboration for climate action, including support for the Climate Coalition and the San Luis Obispo Climate Justice Collaborative, as called for in CAP task 3.1.A. Administration Ongoing Ongoing Staff continued to provide support to the Climate Coalition for educational events as outlined in the MOU between the Coalition and the City. This work is operationalized as standard practice. CA, OS, ST Continue to Build City and Community Capacity for Transformational Climate Action 4.5 d. Support regional efforts to develop the workforce required to implement the Climate Action Plan as called for in CAP task 2.2.A. Administration Ongoing Ongoing Staff continue to meet with local entrepreneurs, HVAC technicians, and economic development organizations to underscore the opportunities available in the clean energy transition. This work is operationalized as standard practice. CA, OS, ST Continue to Build City and Community Capacity for Transformational Climate Action 4.5 e. Initiate update to the Lead by Example plan to inform the 2025-27 Financial Plan as called for by CAP Lead by Example task 1.1.A and Lead by Example Plan Administrative Action 1 Administration Ongoing Complete The Lead by Example update was adopted on February 4, 2025. The CAR is linked here: https://www.slocity.org/government/department- directory/public-works/programs-and-services/capital- improvement-projects/cultural-arts-district-parking-structure CA, OS, ST Continue to Build City and Community Capacity for Transformational Climate Action 4.5 g. Continue to integrate climate action and resilience into the 2025-27 Financial Plan development process consistent with Budget Policy A.6 and as called for by CAP Lead by Example task 1.1. and CASE Program MH-1.5. Administration Ongoing Complete The Sustainability Manager sat on the 2025-27 CIP Steering Committee and provided guidance on how to integrate climate considerations throughout the budget process. This work is operationalized as standard practice. CA, OS, ST Continue to Build City and Community Capacity for Transformational Climate Action 4.5 h. As authorized by City Council (December 13, 2022) and as called for in CAP Administrative Action 6, pursue grant and other external funding sources opportunistically and strategically. Administration Ongoing Ongoing Staff pursued grant funding opportunistically and strategically as described throughout this MCG report table. This work is operationalized as standard practice. Page 189 of 349 Major City Goals Economic Resiliency, Cultural Vitality & Fiscal Sustainability | Business Support | Strategic Approach 1.2 | ProacƟvely evaluate and implement aŌer brieﬁng Council on opportuniƟes to partner with Cal Poly, San Luis Coastal Uniﬁed School District and other major employers for employer supported childcare programs. Responsible Departments: Parks and RecreaƟon Original CompleƟon Date: Ongoing | Update CompleƟon Date: Deferred Status Update: Agency partners worked collaboraƟvely to idenƟfy potenƟal shared childcare facility(ies) for employee childcare support. A County-wide facility study resulted in potenƟal use of mulƟ-agency facility within city limits (Teach campus and COE building on Grand/Slack), however that opƟon was put on hiatus due to District needs for addiƟonal classroom space, Cal Poly properƟes needing signiﬁcant upgrades to meet childcare licensing requirements, and all agencies experiencing limited ﬁnancial resources. AddiƟonally, the UpliŌ Grant opportunity was unsuccessful. This goal has been deferred for the Ɵme being and communicaƟon with all agencies will conƟnue for future opportuniƟes. Downtown Vitality, 1.3, Develop an implementaƟon plan for the recently adopted Access and Parking Management Plan and begin execuƟon of the plan Responsible Departments: Public Works Original CompleƟon Date: Ongoing | Updated CompleƟon Date: Ongoing Status Update: Between 2023 and 2025, several elements of the Access and Parking Management Plan (APMP) were advanced. During this Ɵme, staff also worked closely with stakeholders and the community to complete both a Parking Rate Study and a Downtown Parking Technology Roadmap, which built upon— and in some cases updated—the APMP. Key accomplishments include reducing downtown parking rates, implemenƟng a consistent gated entry system across all garages, opening a new parking lot in the upper Monterey area, and delivering several technology upgrades such as selecƟng a new citaƟon management vendor, rolling out digital garage permits, and consolidaƟng to a single mobile app. Economic Resiliency, Cultural Vitality & Fiscal Sustainability | Ensuring Fiscal Responsibility and Sustainable City OperaƟons | Strategic Approach 1.5 | Conduct a Study Session on alternaƟve capital project delivery opƟons and determine whether Council wishes to proceed with a Charter Amendment. Responsible Departments: Public Works / UƟliƟes Original CompleƟon Date: Ongoing | Update CompleƟon Date: Deferred Status Update: This item was deferred to beƩer align with long-term planning and implementaƟon Ɵmeframes of major projects idenƟﬁed in the 10-year Capital Improvement Plan. Amending the City Charter requires a community vote, and consideraƟon of a potenƟal charter amendment to enable alternate capital project delivery methods will be Ɵmed to coincide with upcoming projects that could beneﬁt from such ﬂexibility, such as the verƟcal construcƟon of a new Public Safety Center. Page 190 of 349 Major City Goals Diversity, Equity, and Inclusion | Community-based Policing & RestoraƟve PracƟces | Strategic Approach 2.5b | Work in partnership with FaciliƟes and PD to ensure new public safety building design is equitable and inclusive for the community and all department employees. Responsible Departments: AdministraƟon/PD/Public Works Original CompleƟon Date: Ongoing | Updated CompleƟon Date: Ongoing Status Update: Tenant improvements at 1106 Walnut and 1042 Walnut are being prioriƟzed at this Ɵme. Plans for a new or replacement Public Safety Center will conƟnue – but Ɵming, scope, and locaƟon have yet to be determined. Funding is currently appropriated to the Public Safety Center Capital Project for a two-site analysis, with addiƟonal funding programmed in FY 2026–27 for further site analysis and programming. Future funding is forecast to begin in FY 2029–30 for enƟtlements and iniƟal design. Climate AcƟon, Open Space, & Sustainable TransportaƟon | Implement the Climate AcƟon Plan and Lead by Example 2023-25 Work Plans | Strategic Approach 4.1c | Solar Panels on City FaciliƟes Responsible Departments: Public Works / AdministraƟon Original CompleƟon Date: FY 2024-25 Q3 | Updated CompleƟon Date: FY 2025-26 Q4 Status Update: Solar projects at the Bus Yard, SLO Swim Center, and Fire StaƟon 1 were originally scheduled for compleƟon in 2025, with an addiƟonal project added at the Cultural Arts District Parking Structure. A surge in solar demand following changes to state Net Energy Metering laws prevented the City’s developer from compleƟng the work. Staff have since transferred the agreement and will pursue compleƟon with a new developer in 2026. Climate AcƟon, Open Space, & Sustainable TransportaƟon | Preserve and Enhance Convenient and Equitable AlternaƟve and Sustainable TransportaƟon OpƟons | Strategic Approach 4.3a | AcƟve Transporta Ɵon Plan (ATP) Tier 1 Network – Higuera Complete Streets Project Responsible Departments: Public Works Original CompleƟon Date: FY 2024-25 Q3 | Updated CompleƟon Date: FY 2026-27 Q3 Status Update: This project has been delayed to allow for further feasibility analysis and design reﬁnement based on need for further coordinaƟon with SLO Fire, and community input requests to explore addiƟonal improvements on the Madonna Road Overpass and to reﬁne traffic calming strategies in the Meadow Park Neighborhood. The project is on track to adverƟse for construcƟon by Q3 FY 2025-26, with compleƟon anƟcipated by Q3 FY 2026-27. Climate AcƟon, Open Space, & Sustainable TransportaƟon | Preserve and Enhance Convenient and Equitable AlternaƟve and Sustainable TransportaƟon OpƟons | Strategic Approach 4.3b | AcƟve Transporta Ɵon Plan (ATP) Tier 1 Network – South / King Crossing Responsible Departments: Public Works Page 191 of 349 Major City Goals Original CompleƟon Date: FY 2024-25 Q3 | Updated CompleƟon Date: FY 2025-26 Q4 Status Update: This project has been delayed due to staffing vacancies in the TransportaƟon Planning- Engineering Division, the need to revise curb ramp designs due to changes in accessibility design standards, and due to focused coordinaƟon with SLO Fire. The project is on track to adverƟse for construcƟon FY 2025-26 Q1, with compleƟon Q4 2025-26. Climate AcƟon, Open Space, & Sustainable TransportaƟon | Preserve and Enhance Convenient and Equitable AlternaƟve and Sustainable TransportaƟon OpƟons | Strategic Approach 4.3f | AcƟve Transporta Ɵon Plan (ATP) Tier 1 Network – OrcuƩ to Tiburon Responsible Departments: Public Works Original CompleƟon Date: FY 2024-25 Q4 | Updated CompleƟon Date: Deferred Status Update: The Railroad Safety Trail (OrcuƩ to Tiburon) project is being deferred due to the complexity of coordinaƟon and approvals required with Union Paciﬁc Railroad (UPRR) and other project dependencies. While this project was originally expected to be constructed in conjuncƟon with the Bullock Ranch development, delays with that private project, along with ongoing coordinaƟon with UPRR, have signiﬁcantly impacted the Ɵmeline. UPRR has requested that addiƟonal off-site rail crossing improvements be completed on OrcuƩ Road as part of this trail project, adding further complexity to project scoping and design. Because coordinaƟon with UPRR is a highly constrained and lengthy process, advancing the project will require more than just funding and staffing—it will depend on successful negoƟaƟon and approval of necessary right-of-way agreements and rail safety improvements. In the 10-year CIP included in the 2025–27 Financial Plan, the City prioriƟzed this AcƟve TransportaƟon Program (ATP) project and aligned staff and funding resources accordingly. Staff will conƟnue coordinaƟon efforts with UPRR and reassess project readiness, right-of-way status, and available resources during preparaƟon of the 2027–29 Financial Plan. The 10-year CIP currently forecasts $700,000 in Year 8 for design, right-of-way acquisiƟon, and environmental review, and $2.45 million in Year 10 for construcƟon. Climate AcƟon, Open Space, & Sustainable TransportaƟon | Preserve and Enhance Convenient and Equitable AlternaƟve and Sustainable TransportaƟon OpƟons | Strategic Approach 4.3i | Citywide Bikeshare Responsible Departments: AdministraƟon Original CompleƟon Date: FY 2045-25 Q4 | Updated CompleƟon Date: Ongoing Status Update: With support from the AcƟve TransportaƟon Commission and City Council, staff issued an RFP for a no-cost bikeshare program. However, market condiƟons shiŌed during development, and providers could no longer offer such programs without a signiﬁcant investment from the City. Staff conƟnue to monitor funding opportuniƟes and will noƟfy Council if a viable source emerges. Climate AcƟon, Open Space, & Sustainable TransportaƟon | Increase Community Resilience | Strategic Approach 4.4f | IniƟate the development of Wildland-Urban-Interface Defensible Space and Home Hardening Program as called for in CASE program FI-5.15. Page 192 of 349 Major City Goals Responsible Departments: Fire Original CompleƟon Date: FY24 Q4 | Updated CompleƟon Date: FY26 Q4 Status Update: A comprehensive educaƟon plan for homeowners has been created. Staff applied for a grant to assist with funding and received noƟﬁcaƟon of the award offer, which will provide a very modest amount of funding to support this work. While this increases capacity, compleƟon will be delayed beyond FY26 due to the recently updated and expanded maps that now include 9,000 more parcels. Climate AcƟon, Open Space, & Sustainable TransportaƟon | Increase Community Resilience | Strategic Approach 4.4g | Resilience Hub Funding Responsible Departments: AdministraƟon Original CompleƟon Date: Ongoing | Updated CompleƟon Date: Ongoing Status Update: The City applied for a compeƟƟve grant to fund resilience hub planning and design but was not selected. No signiﬁcant new funding sources have since become available, though staff conƟnue to monitor opportuniƟes. Open Space, Climate AcƟon and Resilience | Increase Community Resilience | Strategic Approach 4.4b | Conduct a study session to consider opƟons for funding Stormwater and/ or creek maintenance and ﬂood preparedness in support of CASE programs 3.9, 3.10, 3.11, 3.12, 3.13, and 3.14. Responsible Departments: UƟliƟes / Public Works / AdministraƟon Original CompleƟon Date: FY 25 Q4 | Updated CompleƟon Date: FY 26 Q2 Status Update: Due to compeƟng prioriƟes and Ɵming of related projects, as well as a recogniƟon that the likely funding opƟons would result in addiƟonal ﬁnancial burdens for property owners at a Ɵme of overall ﬁscal uncertainƟes and impacts for residents, staff recommends modifying the compleƟon date of this task. Staff recommends modifying this Ɵmeframe to FY 2026 Q2 to beƩer align with Ɵmelines for other projects. Deferring this item will allow Staff more Ɵme to prepare and complete outreach with stakeholders and will not put the City at risk in fulﬁlling any current regulatory obligaƟons. Page 193 of 349 Page 194 of 349 Federal Funding Summary As of October 1, 2025 As of October 1, 2025, Congress did not reach an agreement to pass a funding bill for the next ﬁscal year and the Federal Government has entered a shutdown. Recent shutdowns occurred in 2013, 2018, and 2019, and have lasted between 3 and 35 days. Some critical services will continue to operate, including the Postal Service, Social Security, and Medicare. Many other departments will halt operations and furlough employees until funding is restored. The City has historically utilized Federal funding for programs throughout its operations as detailed in the table below: As shown above, the Transit Fund is the primary beneficiary of Federal funding. The General Fund also budgeted for a US Department of Justice Grant to hire two additional police officers and received another grant from the Department of Energy for its Buildings UP program. The General Fund also awaits approximately $8.7M in reimbursement for Winter 2023 storms that FY 2023-24 FY 2024-25 FY 2025-26 Federal Funding Summary Actual Actual Budget YTD Actuals Remainder General Fund US DOJ Federal Grants -$ -$ 88,873$ -$ 88,873$ Other Federal Grants 171,362 369,573 173,727 173,727 - FEMA - COVID 58,406 393,948 - - - FEMA - Jan 2023 Storms - 11,411 - 166,418 (166,418) FEMA - Mar 2023 Storms - 103,754 - 680,630 (680,630) Law Enforcement Fund US DOJ Federal Grants 16,271 13,747 13,000 983 12,017 CBDG Fund Other Federal Grants 417,368 - - - - Infrastructure Investment Fund Federal Stimulus Grants 9,094,894 105,106 - - - Affordable Housing Fund Federal Stimulus Grants 1,264,467 - - - - Water Fund Other Federal Grants - 15,000 - - - Sewer Fund Other Federal Grants - 5,000 - - - Parking Fund Other Federal Grants - 5,000 - - - Transit Fund FTA 5307 (Capital) 684,498 798,943 2,693,785 - 2,693,785 FTA 5307 (Preventative Maintenance) - 211,296 210,765 - 210,765 FTA 5307 (Operating) - - 2,647,775 - 2,647,775 Other Federal Grants 2,802,275 7,135,073 2,701,956 (742) 2,702,698 Total Federal Funding 14,509,542$ 9,167,851$ 8,529,881$ 1,021,016$ 7,508,865$ Page 195 of 349 was budgeted for in FY 2024-25 and is currently either obligated for reimbursement or pending final review from the Federal Emergency Management Agency. In prior years the City also received significant funding from the American Rescue Plan Act and other programs that are critical for important projects, including the following federally funded projects: In addition to the direct exposure, the City partners with other agencies and organizations to fulfill its service mission. These agencies, including the Community Action Partnership of San Luis Obispo (CAPSLO), Transitions-Mental Health Association (TMHA), the County of San Luis Obispo, the State of California, and many more, depend on federal funding to fulfill their missions. This government shutdown was widely anticipated, and staff were directed to draw down on all funding beforehand to the greatest extent possible. If this shutdown is brief, as is typically the case, staff expect limited impact to City operations. While the majority of City operations are not supported by Federal funding, many of the City’s partners including the County and many non-profit organizations rely heavily on Federal funding to provide important services to the community. While many “safety net” programs are funded in advance of services being provided, and the State has indicated that it will support some programs with its own reserves, the impacts to members of the community will be more severe the longer the shutdown lasts. For City operations, the impact of a prolonged shutdown would be most acute for the Transit Fund, despite the fact that staff anticipates no immediate impact to SLO Transit operations. On September 30, 2025, the U.S. Department of Transportation released a plan for operations during a lapse in annual appropriations. The plan states that the Federal Transit Administration’s (FTA) operations will continue as normal during a lapse in appropriations and that the FTA has sufficient funds to support several months of reimbursements for active grants. However, execution of new grant awards dependent on annual appropriations will be delayed. If the shutdown extends Project Name Project Budget Remaining Budget Anticipated funding 2 Battery Electric Buses and Associated Infrastructure 370,800 370,800 3 Battery Electric Buses and 1 Cutaway Bus 6,314,035 6,314,035 Broadband Plan 600,000 - 6,794,215 California & Foothill Railroad Crossing Upgrade 384,799 52,117 800,000 Higuera Widening at 50 Higuera 297,316 67,500 ATP-South Broad Street Corridor 400,000 Transit Fleet Replacement: 2 Bus Replacements 2,709,371 534,835 Transit Fleet Replacement: New Protera/Flyer Buses 785,373 135,909 Building Electrification 75,000 75,000 Prado Road Bridge Widening 8,065,000 8,065,000 Grand Total 19,601,694 15,615,196 7,994,215 Page 196 of 349 beyond the available FTA funds, then Transportation Development Act fund reserves could sustain operations for at least one year. Page 197 of 349 Page 198 of 349 FY 2024-25 Year-End Budget Report November 4, 2025 Recommendation 2 1. Receive and file the FY 2024-25 Year End Budget Report Year two of the 2023-25 Financial Plan This presentation contains unaudited results from July 1, 2024 – June 30, 2025, including: •Revenue and operating expenditures •Comparison to budget and analysis of variances •Major City Goals and Capital Improvements Program updates 3 Operating Expenditures By Fund (in millions)Budget Actuals Status General Fund $99.0 $93.6 Water 27.6 25.3 Sewer 20.6 19.7 Parking 9.6 9.0 Transit $6.0 $5.9 Revenue By Fund (in millions)Budget Actuals Status General Fund $127.7 $126.7 Water 28.7 35.6 Sewer 20.8 26.0 Parking 10.0 10.8 Transit $17.1 $13.2 General Fund Variance Trends $10.9M $11.6M $10.0M $8.9M $4.4M ($5M) $0M $5M $10M $15M FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Revenue Expenditures General Fund Revenue (in millions)Budget Actuals Variance Taxes $103.5 $104.8 +$1.2 User Fees 13.1 13.3 +0.2 Storm Reimbursement 8.7 0.9 (7.8) Other 2.3 7.7 +5.4 Total $127.7 $126.7 ($1.0) Sales Tax Trend $51.6M $52.9M $53.4M $54.4M $55.5M $0.0M $20.0M $40.0M $60.0M FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26B +0.9%+1.8%+2.1%+2.5% Investment Income Trend $0.2M $1.7M $4.0M -$2.0M $0.0M $2.0M $4.0M $6.0M FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Cash Income FMV Adjustments -$1.0M $5.3M FY 2024-25 Year-end Preliminary (unaudited) Fund Balance Fund Balance (in millions) Beginning Balance $43.1 Revenue 126.7 Expenditures 122.4 Ending Balance 47.4 (Committed & Assigned)(28.7) (Reserves)(14.6) Unassigned Fund Balance $4.1 •Policy dictates unassigned fund balance should be used for CalPERS ADPs, infrastructure, and emerging health and safety Storm Update Status Amount # of Projects Notes Obligated for reimbursement $1.94M 19 The City has received $962,213 of this amount. Pending final FEMA review $6.74M 5 Includes San Luis Drive project ($5.36M) and Citywide debris removal ($1.34M), which both require Congressional review prior to formal obligation. FEMA review ongoing $8.86M 15 Three of these projects, totaling $4.75M, may be canceled if FEMA does not approve reimbursement. Determined ineligible $18.01M 10 Staff has formally appealed three of the projects determined to be ineligible (a total of $7.03M of the total amount determined ineligible). Staff is sending all appeals to Congressman Carbajal’s office for awareness and follow-up with FEMA. In addition to the projects summarized above, staff has submitted four other projects totaling $1.15M to the Federal Highway Administration for consideration of reimbursement in coordination with Caltrans. Federal Funding Summary FEMA: ~$1M obligated and pending additional $15.6M under review for potential reimbursement Transit: $8.2M in operating and capital grants pending Other ongoing operational funding: $0.2M Department of Energy BuildingsUP prize received $0.1M in US DOJ Law Enforcement grants pending Major City Goals Economic resilience, cultural vitality, & financial stability •8 tasks completed •31 tasks ongoing •1 task delayed Diversity, equity, & inclusion •4 tasks completed •23 tasks ongoing •5 tasks delayed Housing & homelessness •14 tasks completed •3 tasks ongoing Climate action, open space, & sustainable transportation •14 tasks completed •34 tasks ongoing •8 tasks delayed Major City Goals – Yellow Tasks •1.2l Employer supported childcare •1.5d Impact fee study and update •2.5b Public safety building design •4.1c Solar panel installations •4.3a ATP – South Higuera •4.3b ATP – South/King Crossing •4.3c ATP – Foothill •4.3d ATP – California/Taft Roundabout •4.3g ATP – Foothill/California Crossing •4.3j – Vision Zero Action Plan •4.4b – Flood preparedness study session •4.4f – WUI Defensible Space and Home Hardening Program •4.4g – Climate Resilience Hub Major City Goals – Red Tasks •1.5b Alternative Capital Project Delivery Options Study Session •4.3f ATP – Orcutt to Tiburon Connection •4.3l Bikeshare system Capital Improvement Program •31 projects worth $41.1M completed during the fiscal year •13 projects worth $231.2M ongoing •3 legacy projects worth $156.2M in design Capital Improvement Program – Ongoing Projects (Q4) •Mid-Higuera Bypass •Mission Plaza Enhancements •City Hall’s Finance/IT Remodel •Cultural Arts District Parking Structure •Sierra Way Waterline Replacement •2025 Paving Project •1106 TI & Fencing Project •Bob Jones Trail Groundwater Drilling •Morro & Mill Sewer Replacement (Completed to date) •Wastewater Resource Recovery Facility Upgrade (Completed to date) •Jack House Roof and Windows (Completed to date) •Foothill & Santa Rosa Sewer Replacement (Completed to date) Recommendation 18 1. Receive and file the FY 2024-25 Year End Budget Report Back Up Slides Potential Mid-Year Recommendations Unassigned Fund Balance $4.1M (CalPERS ADP)($0.9M) (Insurance Fund Balance Increase)($1.0M) (Capital Investments)($2.2M) Remainder $- SLOMA •SLOMA has respectfully requested $2.5 million to fund the furnishing and eventual acquisition of its new location General Fund Operating Expenditures by Department Department % Savings Admin/IT % City Attorney % Community Development % CSG Admin % Finance % Fire % Department % Savings Human Resources % Non-Departmental % Parks & Recreation % Police % Public Works % Utilities %