HomeMy WebLinkAboutItem 7a. FY 2022-23 Mid-Year Budget Review Item 7a
Department: Finance
Cost Center: 2002
For Agenda of: 2/7/2023
Placement: Business
Estimated Time: 90 Minutes
FROM: Derek Johnson, City Manager
Emily Jackson, Finance Director
Prepared By: Natalie Harnett, Principal Budget Analyst
SUBJECT: FISCAL YEAR 2022-23 MID-YEAR BUDGET REVIEW
RECOMMENDATION
1. Receive and discuss the Mid-Year Budget report based on revised projections for all
major funds at the mid-point of the 2022-23 fiscal year; and
2. Adopt a Draft Resolution entitled, “A Resolution of the Council of the City of San Luis
Obispo, California, approving amendments to the adopted 202 2-23 Budget
Appropriations” and approve the one-time allocations as stated in the Mid-year Budget
Report; and
3. Provide direction on whether the one-time budget allocations from the 2021-23
Financial Plan listed in Attachment A – Appendix B should be considered as ongoing
expense and included in the base budget for 2023-25.
POLICY CONTEXT
The City’s budget policies require that the City Council review the City’s budget and
financial condition at least every six months. The mid-year review is part of the ongoing
quarterly reporting process and fulfills that purpose. The review allows the Council to
adjust revenue and expenditure assumptions should the need arise. The accompanying
Mid-Year Budget report for 2022-23 provides a comprehensive overview of the City’s
financial condition half-way through the fiscal year and summarizes current financial
trends since the adoption of the 2021-23 Financial Plan Supplement in June 2022.
DISCUSSION
Mid-Year Report Organization
The report’s focus is on the General Fund and each of the City’s enterprise funds. The
mid-year budget report also provides an update on departmental performance measures,
work programs, the Capital Improvement Plan, and Major City Goals. The report (included
as Attachment A) includes the following sections:
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Item 7a
Section A – General Fund Summary: This section provides a narrative overview of the
City’s current General Fund financial condition and current revenue and expenditure
trends as of December 31, 2022. In summary, major tax revenues are exceeding
projections and have been adjusted upward accordingly. Expenditures are on track with
where they should be at this point in the year; however the recent storm expenditures are
not included in the mid-year financials. The revised five-year forecast is also provided and
includes the estimated cost for the projected $9 million in storm expenditures and the
anticipated amount and timing of reimbursement under state and federal programs.
Section B –Mid-Year Recommendations: This section outlines the proposed mid-year
expenditure budget changes as well as one-time allocations of the FY 2021-22
unassigned fund balance. All of the budget changes are administrative or mission critical
in nature and no new programs or services are being recommended. The recommended
additional discretionary payments (ADP) to CalPERs are discussed in the next section of
this Council Agenda Report and detailed in the fiscal impact section.
Section C – Enterprise Fund Summary: This section provides a narrative update of the
City’s enterprise funds’ financial conditions, including any recommended budget changes.
Year-to-date expenditures and revenues are on track for all funds. Revised long -term
forecasts are included.
Section D – Department Performance Measures and Work Program Updates: This
section provides an evaluation on the performance measures and an update on core
objectives of each operating program. All of the 74 total operating programs manage
workload within budget and meet core objectives.
Section E – Capital Improvement Plan (CIP) Update: This section provides an update
on active and ongoing CIP projects.
Section F – Major City Goal Update: This section provides an update on Major City
Goal tasks that were either scheduled for completion in 202 2-23 or are listed as “ongoing”.
Several tasks were delayed, but most were completed or are scheduled to be completed
before year end.
Appendix A – Detailed Financials: This section provides a closer look at year-to-date
actuals for the major funds and the recommended revenue budget adjustments.
CalPERs Additional Discretionary Payments (ADP)
With the 2018-19 Budget Adoption, Council adopted the “Fiscal Health Response Plan”
to help balance the long-term forecast and begin an ambitious schedule to pay down the
City’s pension obligations over 20 years instead of 30 years. This was based on the
commitment to use available unassigned fund balance mainly for this purpose. In addition
to the planned payment of $2 million (General Fund portion) for FY 2022 -23, staff
recommend allocating an additional $1.3 million of unassigned General Fund balance
(due to over realized revenue) which will help offset the 6.1% investment losses that
CalPERs experienced last year. For future planned payments above the regular CalPERS
contributions, see the updated long-term forecasts.
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Item 7a
Storm Response and Activation of the Fiscal Health Contingency Plan
The City has done initial damage assessments related to the storms, but identification of
the scope of the repairs needed is still in the beginning stages. Staff estimate there will
be at least $2 to $3 million of operating costs associated with staff overtime , supplies, and
contracted services. On top of that, Public Works continues to estimate the cost for Capital
repairs which are likely to exceed $5 to $8 million. Given the magnitude of damages, the
City Manager has activated the Fiscal Health Contingency Plan (Attachment C). The
Fiscal Health Contingency Plan is not intended to be a specific “recipe” for expenditure
cuts or revenue increases, but a framework in responding to adverse fiscal
circumstances, such as natural disasters.
Since the storm related costs were unbudgeted, the City Manager requests authorization
through the attached resolution to use the General Fund reserve to pay for storm-related
costs through the end of the fiscal year. Given the updated revenue projections, there will
likely be revenues over expenditures available at year -end to reimburse the reserve;
however these revenues have not yet been realized.
Staff will continue to provide Council with storm-related updates and the broader fiscal
impacts will be considered during the 2023-25 Financial Plan development.
2022-2023 One Time Expenses
As part of the development of the 2021 -2023 Financial Plan, the City allocated one-time
budget to fund critical services in support of Major City Goal objectives. The total amount
of expenditures and the details are included as Attachment A – Appendix B. Staff has
reviewed the list and reduced it to what staff believes are essential and critical items that
support operations and Major City Goal objectives. Staff recommends that the Council
provide direction on whether to add some or all of the costs to the ongoing budget.
Approximately $1.8 million has been assumed in the forecast for ongoing expenses
related to these or other ongoing needs. Determining whether to include these specific
one-time costs in the budget or whether to leave a budget “placeholder” to fund potential
other needs will be useful in terms of how to weigh other competing expenditures. If
Council elects to put the identified list of costs into the ongoing budget, staff will return
with a budget resolution on consent at a future meeting to memorialize Council’s action.
Public Engagement
Public comment on the item can be provided to the City Council through written
correspondence prior to the meeting and through public testimony at the meeting. The
Mid-Year Report will also be posted on the City’s website for public review.
CONCURRENCE
The City’s internal Financial Plan Steering Committee has met on multiple occasions and
concurs with the recommendations included in this report.
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Item 7a
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended
action in this report, because the action does not constitute a “Project” under CEQA
Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2022-23
Funding Identified: Yes
Table 1: FY 2022-23 Mid-Year Revenue Budget Changes
Fund Initial Budget Revised Budget Variance
General Fund $ 120,576,641 $ 124,826,187 $ 4,249,546
Gas Tax Fund $ 1,245,024 $ 1,305,634 $ 60,610
TDA - Bikeway Fund $ 45,000 $ 76,869 $ 31,869
Tourism Bid Fund $ 1,727,202 $ 2,122,800 $ 395,598
SB1 Road Repair 2017 $ 1,049,877 $ 1,019,914 $ (29,963)
Water Fund $ 26,036,569 $ 26,477,592 $ 441,023
Sewer Fund $ 19,645,382 $ 51,737,274 $ 32,091,892
Transit Fund $ 10,489,921 $ 15,560,414 $ 5,070,493
Total $ 180,815,616 $ 223,126,683 $ 42,311,068
Table 2: FY 2022-23 Mid-Year Expenditure Budget Allocations
General Fund $ 395,000
Water Fund $ 377,676
Sewer Fund $ 329,471
CASp Fund $ (70,823)
TDA Fund $ 31,869
Total $ 1,063,193
Table 3: Recommended FY 2022-23 CalPERs ADP1
Fund Planned ADP
(per forecast)
One-time ADP (FY
2021-22 Balance)
Total ADP for
FY 2022-23
1 General Fund $ 2,000,000 $ 1,300,000 $ 3,300,000
2 Water $ 164,840 $ 107,146 $ 271,986
3 Sewer $ 169,419 $ 110,122 $ 279,542
4 Parking $ 61,003 $ 39,652 $ 100,654
5 Transit $ 12,555 $ 8,161 $ 20,716
6 Whale Rock $ 21,417 $ 13,921 $ 35,339
7 TBID $ 7,976 $ 5,184 $ 13,161
8 Total All Funds $ 2,437,211 $ 1,584,187 $ 4,021,398
1 Payment will be made in April 2023
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Item 7a
ALTERNATIVES
The Council could direct staff to not implement the proposed budget change
recommendations. Should the adjustments not be approved, the budget will remain
unchanged at the adopted budget levels. Staff does not recommend an unchanged
budget due changing needs of the community and the City organization.
ATTACHMENTS
A - FY 2022-23 Mid-Year Budget Report
B - Draft Resolution approving an amendment to the 2022-23 Budget Allocation
C - Fiscal Health Contingency Plan
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Mid-Year Budget Review
FISCAL YEAR 2022-23
The City’s Budget and Fiscal Policies (Financial Plan Purpose and Organization, G – Mid-Year Budget
Reviews) call for a formal financial status report to the Council based on the first six months of each fiscal
year. The Mid-Year Budget Review fulfills this requirement and allows the Council to take a broader look
at the City’s financial picture and progress on Major City Goals or strategic initiatives shortly after the mid-
point of the fiscal year.
The mid-year budget review is particularly important during a financial planning year because it gives
Council a first look at the five-year fiscal forecast which will be used to help staff in developing the
preliminary budget for the 2023-25 Financial Plan.
This report focuses on the current fiscal year and provides an analysis of adopted budget revenues and
expenditure appropriations. It also outlines the achievements and the potential challenges for each
department and the City organization as a whole and provides an update on adopted Major City Goals.
Based on the review and accompanying analysis, the City remains financially sound with most revenues
tracking ahead of budget and operating program expenditures remaining within budgeted allocations.
Section Description Page
Section A General Fund Summary 2
Revenues 2
Expenditures 4
Revised GF Long-Term Forecast 6
Section B Mid-Year Changes 8
Section C Enterprise Fund Updates 11
Water 11
Sewer 16
Parking 20
Transit 24
Section D Department Performance Measure and Work Program Updates 27
Section E CIP Update 61
Section F Major City Goal Update 63
Appendix A Detailed Financials 76
Appendix B One-time budget allocations to be considered for the 2023-25
Financial Plan
83
Budget Report Pg. 1 Page 373 of 489
General Fund Summary
A: GENERAL FUND SUMMARY
Revenue
The table below shows the updated revenue forecast for the General Fund (all revenue consolidated).
Detailed year-to-date actuals and mid-year changes by revenue type can be found in Appendix A.
Table 1 – General Fund Revenue
Sales Tax revenue remains incredibly strong through the first half of FY 2022-23, particularly in the
restaurants and hotels category. The updated budget for FY 2022-23 is based on the City’s sales tax
consultant, HdL’s forecasts. Growth factors reflect ongoing pandemic dynamics on sales plus inflationary
pressures on the prices of goods. Based upon projections from HdL, no recession is included in the
forecast. The Bradley Burns assumption includes a negative $600,000 adjustment to account for a
misallocation of revenue by the California Department of Tax and Fee Administration (CDTFA) that should
have been allocated to another County agency. However, this administrative adjustment is not reflective
of the sales tax performance and the 4.9% increase forecasted in FY 2023-24 will return the tax revenue
back to “normal” levels. The Local Revenue Measure, not impacted the administrative adjustment, is
expected to see 3.9% growth in FY 2022-23. The majority of this growth coming from the “Restaurants
and Hotels” and “General Consumer Goods” industry groups.
Property Tax forecasts have been increased by about $700,000 to reflect the latest forecast (September
2022) from the County Assessor’s Office. Although the housing market shows signs of cooling, it is
General Fund Revenue FY 2021-22
Actual Budget Actuals YTD Variance % Received
Midyear
Revised
Budget
Total Midyear
Changes
1 Tax and Franchise Revenue 96,490,763$ 92,451,288$ 30,930,203$ (61,521,085)$ 33%98,267,347$ 5,816,059$
2 Sales Tax (Bradley Burns)22,201,225 21,789,000 7,365,867 (14,423,133) 34%21,524,304 (264,696)
3 Local Revenue Measure G20*29,172,258 27,049,000 10,170,239 (16,878,761) 38%30,141,532 3,092,532
4 Safety Prop 172 529,299 497,000 185,147 (311,853) 37%497,000 -
5 Property Tax 20,970,984 20,746,387 1,453,618 (19,292,769) 7%21,473,397 727,010
6 Transient Occupancy Tax 10,650,762 8,636,000 4,599,391 (4,036,609) 53%10,704,000 2,068,000
7 Utility User Tax 5,085,292 5,544,000 2,074,128 (3,469,872) 37%5,544,000 -
8 Business Tax 2,861,863 2,889,000 3,179,269 290,269 110%3,157,566 268,566
9 Franchise Fees 1,978,295 1,606,000 634,937 (971,063) 40%1,800,000 194,000
10 Gas Tax*1,130,063 1,245,024 735,743 (509,281) 59%1,305,634 60,610
11 Gas Tax (SB1)*911,849 1,049,877 162,439 (887,438) 15%1,019,914 (29,963)
12 Cannabis Tax 998,875 1,400,000 369,425 (1,030,575) 26%1,100,000 (300,000)
13 Service Fees and Other Revenue 11,917,323$ 12,967,312$ 5,806,903$ (7,160,409)$ 45%11,531,447$ (1,435,866)$
14 Development Review 5,970,996 6,361,554 2,981,911 (3,379,643) 47%6,361,554 -
15 Fire 1,502,356 1,576,322 572,210 (1,004,112) 36%1,582,847 6,525
16 Parks & Recreation 1,694,241 1,984,802 729,906 (1,254,897) 37%1,988,802 4,000
17 Police 561,909 641,529 213,357 (428,173) 33%628,139 (13,390)
18 Business Licenses (Incl Cannabis)625,468 655,911 629,788 (26,123) 96%622,911 (33,000)
19 Other Revenue (466,315) 1,070,555 (210,689) (1,281,244) -20% (429,445) (1,500,000)
20 Grants & Subventions 2,028,668 776,638 890,421 213,782 132%776,638 -
21 Grand Total 108,408,086$ 105,518,600$ 36,737,106$ (68,681,495)$ 35%109,798,793$ 4,280,193$
FY 2022-23
How to read the budget tables in this report
Budget: Adopted budget plus any encumbrances from prior year(s) or approved budget adjustments made throughout
the year.
Actual: Actual expenditures plus any encumbrances or obligated funds as of December 31, 2022.
Budget Report Pg. 2 Page 374 of 489
General Fund Summary
expected that property tax will remain one of the City’s most stable revenue streams with 2-3% annual
growth over the next five years.
Transient Occupancy Tax (TOT) revenue continued to hit record highs for the first half of the fiscal year;
however, things are starting to level out. Based on forecasts from Visit SLO Cal, the City’s FY 2022-23
forecast has been revised upward significantly compared to the original budget. Occupancy rates are
expected to stay flat however a slight dip in the Average Daily Rate (ADR) will likely result in a flattening
or slight decline in TOT revenue over the next several years.
Business Tax has been adjusted upward to account for the actual revenue received this year. Business
Licenses are renewed at the beginning of the fiscal year; therefore, all the revenue for FY 2022-23 has
been collected.
Cannabis Tax and Operator License revenue has been adjusted downward based on delayed opening of
businesses.
Gas Tax and SB1 forecasts have been adjusted based on the State’s forecast from May 2022.
Fees for Service have been marginally adjusted to account for actual year-to-date revenue or trends
identified over the last six months. Specific revenue budget changes can be found in Appendix A.
Other Revenue has been adjusted downward by $1.5 million to account for a reduction in interest
earnings due to the Fair Market Value (FMV) of the City’s financial assets.
Grants and Subventions are trending high because of Mutual Aid Reimbursements. This revenue helps
offset expenditures and is not budgeted for.
Development Services Designation1
Based on 2021-22 audited financials and usage during the current fiscal year, the following table shows
the current balance of the development services designation:
Table 2: Development Services Designation
22-23 Beginning Balance $ 530,657
Contract Administrative Assistant $ (66,521)
Current Balance $ 464,136
1 On June 17, 2014, the City Council revised the fiscal policies to provide for the City Manager to allocate up to 75%
of Development Services over-realized revenues to acquire temporary resources for the timely processing of
development applications and other permit processing activities. The policy calls for the allocated revenues to be
reported to the City Council on a semi-annual basis as part of the mid-year and annual budget presentations.
Budget Report Pg. 3 Page 375 of 489
General Fund Summary
Table 4: General Fund Operating Expenditures by Type
At Mid-Year, departmental budgets should typically be about 50% expended, though this can vary for
departments that budget for significant non-salary expenditures that do not always follow even
expenditure patterns throughout the year. Overall, the General Fund is on track with its expenditure
budgets at both the department and the category level. Some notable variances include:
Non-Departmental/Support Services are cost centers for expenditures that are not department specific.
The majority of this budget includes the contingency budget for estimated wage increases based on
approved Council parameters. This budget is historically kept separate because negotiations are not
finalized before budget development. Based on year-to-date actuals, staff expect the entire FY 2022-23
contingency budget to be used by year end.
The Solid Waste division has significant savings due to vacant Solid Waste Manager and Coordinator
positions and carryover contract services budget that has not yet been used.
The detailed financial reports included in Appendix A provide year-to-date expenditure information by
department. The data presented in the table includes committed and encumbered services
General Fund Operating Expenditures by
Department FY 2021-22 Actual Budget Year-to-date
Actual % Expended
1 Internal Services 15,909,988$ 21,295,666$ 10,498,315$ 49%
2 Admin/IT 9,594,922$ 11,908,823$ 6,976,822$ 59%
3 City Attorney 1,374,705$ 1,583,981$ 910,548$ 57%
4 Finance 2,384,733$ 2,392,085$ 1,155,993$ 48%
5 Human Resources 1,901,906$ 1,951,560$ 1,232,360$ 63%
6 Non-Dept/Support Services 653,721$ 3,459,216$ 222,591$ 6%
7 Community Services 29,228,367$ 31,525,305$ 17,246,376$ 55%
8 CSG Admin 654,889$ 761,286$ 381,399$ 50%
9 Community Development Department 7,781,004$ 7,839,080$ 4,126,153$ 53%
10 Parks & Recreation 5,106,833$ 5,304,336$ 2,595,305$ 49%
11 Public Works 15,499,759$ 17,175,448$ 10,025,233$ 58%
12 Solid Waste 185,882$ 445,155$ 118,285$ 27%
13 Public Safety 39,650,003$ 35,903,857$ 21,139,680$ 59%
14 Fire 17,086,220$ 14,672,305$ 8,764,728$ 60%
15 Police 22,563,783$ 21,231,552$ 12,374,952$ 58%
16 Total 84,788,358$ 88,724,828$ 48,884,370$ 55%
FY 2022-23
General Fund Operating Expenditures by
Type FY 2021-22 Actual Budget Year-to-date
Actual % Expended
1 Salaries 38,636,808$ 44,266,024$ 20,124,670$ 45%
2 Retirement/Benefits 7,370,806$ 9,812,079$ 3,879,195$ 40%
3 Contract Services 9,861,326$ 13,494,499$ 8,660,797$ 64%
4 Utilities 2,761,025$ 3,125,941$ 1,764,592$ 56%
5 Other Operating Expenditures 4,527,029$ 5,347,042$ 2,601,083$ 49%
6 PERS Unfunded Liability/Retiree Healthcare 21,631,364$ 12,679,244$ 11,854,034$ 93%
7 Grand Total 84,788,358$ 88,724,828$ 48,884,370$ 55%
FY 2022-23
Expenditures Through the December 31, 2022
Table 3: General Fund Operating Expenditures by Department
Budget Report Pg. 4 Page 376 of 489
General Fund Summary
Revised General Fund Long Term Forecast
The long‐term forecast is an essential planning tool for the City and its ongoing service delivery. While the
City adopts a two‐year Financial Plan that must be balanced, the outer years of the forecast are presented
to show the City’s financial condition and availability of resources into the future. The forecast is updated
every six months which gives staff the opportunity to alert Council of looming imbalances and strategize
proper actions to be taken.
Key takeaways
Overall, the General fund is in a good financial condition and stays balanced throughout the five‐year
forecast at current service levels. Current assumptions are con servatively optimistic, and the forecast only
assumes a cooling of the current economic activity (not a recession). The impacts of high inflation on the
City’s forecast are still not entirely known.
Revenue forecasts can be very volatile but are easy to update every six months based on the latest
economic data or trends. Expenditure budget forecasts are usually less volatile but only updated on an
annual basis for a number of reasons: (1) not all expenditures increase at the same rate, (2) staffing costs
can fluctuate based on the incumbents within the roles, and (3) CIP project budgets require significant
staff time to re‐estimate. Departments will begin preparation of base budgets for the 2023‐25 Financial
Plan this month; however, staff have included some assumptions for expenditures in order to provide
Council with a realistic outlook.
Assumptions
1.Tax revenues have been updated as noted in the revenue section of this report and fees for service
are inflated by 3% in FY 2023‐24, followed by 2% annually after that.
2.The Capital Budget allocation was increased 19% in FY 2023‐24 to account for construction cost index
(CCI)increases, followed by 2% annual increases. Additionally the forecast assumes an estimated
$5.2 million one‐time allocation towards the Infrastructure Investment Fund to repay potential use
of funds in the current year to acquire office and future public facilities space for organizational
needs. The source of this repayment is use of an unassigned balance in the debt service fund that is
not needed to service debt, and projected one‐time revenues over expenditures from FY 2022‐23.
3.High level estimates for staffing from FY 2023‐24 through FY 2026‐27. These numbers will be refined
with the 2023‐25 Financial Plan.
4.One‐time budget allocations have been removed with the exception of a placeholder (i.e. $1.822
million) to account for staff’s estimate of items that Council will choose to make ongoing with the
2023‐25 Financial Plan.
5.A 3% inflator included for non‐staffing budgets in FY 2023‐24, followed by 2% annually after that.
This is subject to change during base budget development.
6.The City will use part of its operating reserve in FY 2022‐23 and FY 2024‐24 to offset storm costs but
will replenish it back to the 20% reserve level, consistent with policy requirements, in FY 2024‐25.
Looking Forward
The forecast is an important planning tool (i.e. it is not a budget) to consider during the 2023‐25 Financial
Planning process; however, the February 11, 2023 goal setting workshop should not focus on specific
numbers. Council should assume that the forecast is going to be very tight and in order to fully fund the
CIP and existing operating services, there will be minimal, if any, available fund balance. Staff will take the
feedback from the goal‐setting workshop and work with program managers to determine how Major City
Goal work programs can be incorporated into the big picture. The preliminary budget presented in April
will include the updated expenditure forecasts and outline all new budget additions or changes.
Budget Report Pg. 5 Page 377 of 489
Table L1: General Fund Long Term Forecast
In Thousands
Footnote (A)
Actual
2021-22
(B)
Budget
2022-23
(C)
Revised
2022-23
(D)
Projected
2023-24
(E)
Projected
2024-25
(F)
Projected
2025-26
(G)
Projected
2026-27
Tax & Franchise Revenue
1 Sales & Use Tax 51,665 49,335 52,163 53,340 54,573 55,988 57,465
2 Sales Tax General 22,247 21,789 21,524 22,579 23,166 23,768 24,410
3 Public Safety (Prop 172)529 497 497 499 509 519 530
4 Measure G20 28,889 27,049 30,142 30,262 30,898 31,701 32,525
5 Property Tax 20,711 20,746 21,473 22,000 22,660 23,340 24,040
6 Transient Occupancy Tax 10,651 8,636 10,704 10,704 10,918 11,136 11,359
7 Utility Users Tax 5,420 5,544 5,544 5,710 5,882 6,058 6,240
8 Franchise Fees 1,978 1,606 1,800 1,854 1,910 1,967 2,026
9 Business Tax Certificates 2,823 2,889 3,158 3,252 3,317 3,384 3,451
10 Cannabis Tax 999 1,400 1,100 1,650 1,700 1,750 1,803
11 Total Tax & Franchise Revenue 94,247$ 90,156$ 95,942$ 98,510$ 100,959$ 103,624$ 106,384$
Fees for Service & Other Revenue
12 Police Services 571 632 688 651 664 678 691
13 Fire Services 1,498 1,576 1,458 1,624 1,656 1,689 1,723
14 Development Review 6,117 5,918 6,335 6,095 6,278 6,466 6,660
15 Parks & Recreation 1,698 1,979 1,969 2,018 2,059 2,100 2,142
16 General Government 498 446 446 459 468 478 487
17 Cannabis 127 210 210 216 223 229 236
18 Other Revenues 474 2,063 711 2,106 2,134 2,162 2,192
19 Subventions & Grants 2,068 587 777 440 440 440 441
20 Federal Stimulus Funding (ARPA)6,782
21 FEMA Storm Reimbursment - ESTIMATE 1 4,208 4,208
22 Total Fees & Other Revenue $ 13,052 $ 20,194 $ 12,593 $ 17,817 $ 18,130 $ 14,243 $ 14,573
23 Total Revenue $ 107,299 $ 110,349 $ 108,535 $ 116,328 $ 119,088 $ 117,866 $ 120,957
Use of Funds
14 Staffing 67,639$ 64,618$ 65,401$ 67,648$ 71,191$ 73,177$ 75,302$
25 Contract Services 7,836$ 7,816$ 9,575$ 6,772$ 6,907$ 7,045$ 7,186$
26 Other Operating Expenditures 9,555$ 9,058$ 9,976$ 9,096$ 9,478$ 9,667$ 9,861$
27 Cost Allocation (4,717)$ (4,462)$ (4,462)$ (4,819)$ (4,963)$ (5,112)$ (5,265)$
28 Total Operating Expenditure $ 80,313 $ 77,031 $ 80,491 $ 78,697 $ 82,613 $ 84,778 $ 87,083
29 Debt Service 1,997$ 1,992$ 1,992$ 1,843$ 1,758$ 1,751$ 1,540$
30 Capital 30,575$ 25,632$ 22,484$ 31,771$ 27,102$ 27,644$ 28,197$
31 Transfers Out/(In)923$ 296$ 296$ (2,208)$ 125$ 269$ 276$
32 Total Expenditure $ 113,808 $ 104,950 $ 105,263 $ 110,102 $ 111,598 $ 114,441 $ 117,096
33 PROJECTED Ongoing Budget Additions (see Appendix B) $ 1,823 $ 1,877 $ 1,934 $ 1,992
34 Beginning Fund Balance $ 47,118 $ 30,067 $ 37,309 $ 34,082 $ 31,985 $ 35,598 $ 35,089
35 CalPERS Downpayments 2 $ (3,300) $ (2,000) $ (2,000) $ (2,000) $ (2,000) $ (2,000) $ (2,000)
36 Revenue Over/(Under) Expenses $ (9,809) $ 3,399 $ 1,272 $ 2,403 $ 3,613 $ (508) $ (131)
37 Ending Fund Balance $ 37,309 $ 33,466 $ 38,582 $ 36,485 $ 35,598 $ 35,089 $ 34,958
38 ARPA Expenditures 3 (3,664)
39 Storm Expenditures - ESTIMATE 1 (4,500) (4,500)
40 Ending Fund Balance $ 37,309 $ 29,801 $ 34,082 $ 31,985 $ 35,598 $ 35,089 $ 34,958
41 Policy Reserve Level - 20%12,014 13,035 13,071 11,985 13,821 14,162 14,527
42 Revenue Stabilization Reserve 2,000 2,000 2,000 2,000 2,000 2,000
43 115 Pension Trust Fund 2,000 3,000 3,000 3,000 3,000 3,000 3,000
44 Restricted based on Audit 19,232 13,465 16,010 15,000 15,000 15,000 15,000
45 Undesignated Fund Balance $ 2,064 $ 301 $ 0 $ 0 $ 1,777 $ 927 $ 431
Revised with Mid Year
Budget Report Pg. 6 Page 378 of 489
Table L1: General Fund Long Term Forecast
Long Term Forecast Footnotes:
1 – Unplanned storm response expenditures will be paid for out of the General Fund reserve with the
assumption that any revenue above expenditures will be used to replenish the reserve. The forecast also
assumes that 93.5% of costs will be reimbursed by FEMA (cell D21 & E21). This amount is merely an
estimate. Staff will provide an update with the third quarter budget report.
2 – FY 2022-23 includes the additional discretionary payment of $1.3 M recommended in the Mid-Year
Report (See cell A35).
3 – In the revised Mid-Year Column “C”, ARPA funds are removed from both the revenues and
expenditures. Since the revenue was actually received in FY 2021-22, it was deposited directly into the
corresponding funds as allocated by Council (R-11333). This is an administrative accounting adjustment
and has no impact on the General Fund balance.
Budget Report Pg. 7 Page 379 of 489
Mid-Year Expenditure Budget Changes
B. Mid-Year Expenditure Budget Changes
This section includes any changes to expenditure budgets, including:
1. Updated Transportation Development Act (TDA) Bikeways allocation for FY 2022-23
2. Reappropriation of Certified Access Specialist (CASp) Fees
3. Appropriation of one-time CalPERS Additional Discretionary Payments (ADP)
4. General Fund Operating Budget Changes
5. Enterprise Fund Operating Budget Changes
1. Transportation Development Act (TDA) Article 3 Funding
The State of California has designated 1/4% of the sales tax levied statewide for local transportation
purposes. Funding for this program was provided during the 1971 legislative session with the enactment
of the Transportation Development Act, which extended the State sales tax to include purchases of
gasoline. Revenues allocated to the City of San Luis Obispo under this program are divided into two
categories: Article 3 funds, which are restricted for the improvement and maintenance of street systems
including pedestrian and bicycle facilities; and Article 4 funds, which are restricted for public transit
systems and are recorded directly in the Transit Fund. Under the City’s Financial Plan policies, all TDA
Article 3 revenues are allocated for alternative transportation purposes.
During budget development, staff include a conservative TDA revenue forecast which is then programmed
towards an eligible capital project. The purpose of this adjustment is to update the revenue and
expenditure budgets based on the actual 2022-23 TDA allocation.
Table 5: TDA Bikeways Article 3 Funding Allocation Original
Budget Updated Variance
Transportation Plan Implementation – Pedestrian Facility
Improvements (Project #1000502-01) $ 45,000 $ 76,869 $ 31,869
2. SB1186 CASP Certify Funding (CASp)
The CASp fund was established by Senate Bill 1186 (2012) which requires local agencies to collect an
additional fee when issuing a permit for the purpose of increasing certified access specialist (CASp)
services and compliance with construction-related accessibility requirements. The first priority is to spend
the funds on the training and retention of CASps in order to meet the needs of the public in the
jurisdiction. The funds may also be spent on activities or programs that facilitate accessibility compliance.
The City’s Deputy Building Official is CASp certified and has been expanding the City’s CASp program. In
reviewing the fund and current budget allocations, the Deputy Building Official identified that the FY 2021-
22 budget allocation was not in line with the Department of the State Architect (DSA)2 recommendations.
These funds have not been spent and staff recommend removing them from the project budget in order
to facilitate accessibility compliance programs and trainings more in line with the bill language. Some
2 The Department of the State Architect (DSA) does not advise the use of funds from the SB 1186 fee by local
jurisdictions to directly fund construction projects, nor accessibility work that is not construction -related, as these
activities are not clearly permissible in law (see Government Code Section 4467).
Budget Report Pg. 8 Page 380 of 489
Mid-Year Expenditure Budget Changes
operating expenditures have been identified in FY 2022-23 and the remaining funds will be programmed
as part of the 2023-25 Financial Plan.
Table 6: CASp Funding
1 FY 2021-22 CASp Fund Balance $ 112,056
2 Assigned to Sidewalk Replacement and Installation Project (#90849) $ 85,461
3 Remaining Balance $ 26,595
CASp Funding: Mid Year Recommendations
4 Remove budget from Project 90849 $ (85,461)
5 Allocation towards current eligible 2022-23 staff expenditures3:
6 CASp Certification (Application, Exams, Certificate) $ 1,200
7 CASp Training @ CCAIA (6 employees) $ 646
8 CASp Training @ CALBO (Registration, Per Diem, Mileage) $ 774
9 Access Toolkit (1 employee) $ 199
10 CASp Training @ CASI (Registration, Per Diem, Mileage) $ 919
11 Additional Planned 2022-23 Expenditures
12 Casp Certification (2 employees) $ 2,400
13 Training/Test Prep software (2 employees) $ 1,000
14 Access Toolkit (5 employees) $ 1,500
15 National ADA Symposium (May 2023) (2 employees) $ 6,000
16 Remaining Balance $ 97,417
3. CalPERs Additional Discretionary Payments (ADP)
With the 2018-19 Budget Adoption, Council adopted the “Fiscal Health Response Plan” to help balance
the long-term forecast and begin an ambitious schedule to pay down pension obligation over 20 years
instead of 30 years. This was based on the commitment to use available unassigned fund balance mainly
for this purpose. In addition to the planned payment of $2 million (General Fund portion) for FY 2022-23,
staff recommend allocating an additional $1.3 million of unassigned General Fund balance (due to over
realized revenue) which will help offset the 6.1% investment losses that CalPERs experienced last year.
For future planned payments above the regular CalPERS contributions, see the updated long-term
forecasts.
Table 7: 2021-22 General Fund Unassigned Fund Balance
1 Unassigned General Fund Balance (2021-22 ACFR Pg. xv) $ 8,356,724
2 City Manager Approved Year End Carryover $ (2,857,159)
3 Revenue Stabilization Reserve4 $ (2,000,000)
4 Required for Balanced Forecast $ (2,095,000)
5 Remaining FY 2021-22 Year End Balance $ 1,404,565
6 Recommended CalPERs ADP (Recommendation – See table 8) $ 1,300,000
7 Unassigned fund balance $ 104,565
3 Expenses incurred in FY 2022-23 were paid out of the General Fund but will be reimbursed by the CASp fund.
4 Allocated by Council on October 4, 2022 (R -11367)
Budget Report Pg. 9 Page 381 of 489
Mid-Year Expenditure Budget Changes
Table 8: Recommended FY 2022-23 CalPERs Additional Discretionary Payments (ADP)5
Fund Planned ADP (per
forecast)
One-time ADP (FY 2021-
22 Balance)
Total ADP for FY
2022-23
1 General Fund $ 2,000,000 $ 1,300,000 $ 3,300,000
2 Water $ 164,840 $ 107,146 $ 271,986
3 Sewer $ 169,419 $ 110,122 $ 279,542
4 Parking $ 61,003 $ 39,652 $ 100,654
5 Transit $ 12,555 $ 8,161 $ 20,716
6 Whale Rock $ 21,417 $ 13,921 $ 35,339
7 TBID $ 7,976 $ 5,184 $ 13,161
8 Total All Funds $ 2,437,211 $ 1,584,187 $ 4,021,398
4. Operating Budget Changes
The following budget adjustments are either mission critical or administrative in nature. No new
programs or services are being recommended.
Table 9: Recommended FY 2022-23 Mid Year Budget Changes Budget
General
Fund
Swim Center Boiler Replacement - This funding will repair the heat
exchange components on the current boiler system. This was determined to
be an issue following an inspection and diagnosis of the boiler system.
$20,000
General
Fund
Staffing Contingency – Additional budget necessary to cover anticipated
staffing expenditures through the end of FY 2022-23. If any portion of
contingency is not activated, it will be returned to fund balance at the end
of the year.
$375,000
Water
Fund*
Staffing Contingency - Administrative Adjustment for Bargaining Unit
Parameters resulting from Compensation Study Salary Increases6 $377,676
Sewer
Fund*
Staffing Contingency - Administrative Adjustment for Bargaining Unit
Parameters resulting from Compensation Study Salary Increases $329,471
Total $1,102,147
*Also included in Enterprise Fund Summaries (Section C)
5 Payment will be made in April 2023
6 This covers the required amounts to cover bargaining parameters for SLOCEA that were not part of the original
budget; however can be absorbed out of the funds’ working capital on an ongoing basis.
Budget Report Pg. 10 Page 382 of 489
Enterprise Funds: Water
C: Enterprise Funds
The City’s financial structure is separated into governmental funds and business activities or Enterprise
funds. Business activities are distinguished from governmental funds by their similarity to private sector
enterprises and are financed largely through user service charges. The City has four unique funds that fall
into this category:
WATER FUND SUMMARY________________________________________________________
Revenue
Water sales are trending on track with revenue projections and revenues in prior fiscal years. At the time
of writing this report, revenues only reflect four months (or 33%) of water sales because of the timing of
billings. Water sales, base charges, sales to Cal Poly, and other miscellaneous utilities set up fees comprise
over 90% of anticipated revenues.
Table 10: Water Fund Revenue
Typically, water consumption trends higher in the summer months, due to increased irrigation demands
caused by hotter, drier weather. During the first few years of drought, water consumption usually starts
high, then tapers off when the public becomes more aware of drought conditions. While water supplies
are secure in the City, per-capita residential water use has decreased slightly in comparison with the first
two years of the current drought (2020 and 2021) as residents and businesses have complied with the
Governor’s Orders on this topic.
Water Sewer Parking Transit
Budget Report Pg. 11 Page 383 of 489
Enterprise Funds: Water
Graph A: Residential Gallons per Capita per Day (RGPCD)
Other major sources of revenue in the Water Fund include $697,500 received through the Cal OES Hazard
Mitigation Grant Program and $265,949 received through the Tetrachloroethylene Plume
Characterization Planning Grant. The Water Fund has not received these funds yet because they are
contingent on project timelines for the Water Treatment Plant Emergency Power (Public Safety Power
Shutoff) project and the Groundwater Contamination Characterization Project.
The fund remains on track to meet revenue targets and short-term operational, capital expenditure, and
reserve needs.
Operating Expenses
As projected in the Adopted Supplemental Budget 2022-23, costs related to chemicals, electricity, and
capital project delivery continue to increase. Industry-specific increases have exceeded general inflation
and are not anticipated to normalize this fiscal year. Chemical and electricity cost increases will co ntinue
to impact the Water Fund, as these expenses amount to more than 15% of the annual operating budget.
The City’s Water Treatment Plant and reservoirs are located in the unincorporated area and are currently
not subject to Central Coast Community Energy (3CE) pricing. The recent compensation study also
contributed to higher expenditures. Operating expenses are on track with appropriated budget
allocations.
Table 11: Water Fund Operating Expenditures
Water Fund Operating Expenditures FY 2021-22 Actual Budget Year-to-date
Actual % Expended
Salaries 2,881,761$ 3,407,456$ 1,547,931$ 45%
Retirement/Benefits 644,812$ 799,220$ 357,536$ 45%
Contract Services 9,933,688$ 11,970,558$ 9,202,161$ 77%
Utilities 526,965$ 698,125$ 352,591$ 51%
Other Operating Expenditures 942,986$ 1,524,493$ 846,667$ 56%
PERS Unfunded Liability/Retiree Healthcare 1,648,106$ 754,930$ 698,149$ 92%
Transfers Out 2,517,178$ 2,311,753$ 1,155,877$ 50%
Total 19,095,496$ 21,466,535$ 14,160,912$ 66%
FY 2022-23
Budget Report Pg. 12 Page 384 of 489
Enterprise Funds: Water
Mid-Year Budget Changes: One mid-year budget adjustment is being requested as outlined below. This
request can be absorbed within the fund’s working capital.
Table 12: Water Mid-year Operating Budget Request Current Amount
Budgeted
Amount
Requested New Total
Administrative Adjustment for Bargaining Unit Parameters
resulting from Compensation Study Salary Increases7 $129,622 $248,054 $377,676
The Water Fund Long Term Forecast: Challenges and Considerations
Industry-specific increases, general inflation, and increased staffing costs continue to impact the Water
Fund. Additionally, deferral of rate increases has resulted in substantial reduction in revenues. Early
analysis indicates that proposed rate increases in the next financial plan may exceed historic averages.
Industry-Specific Increases
Some of the most substantial increases in cost of operations were industry-specific increases in capital
projects, electricity, and chemicals. For capital projects and electricity, costs have risen as much as 20%.
Chemicals are more variable and extreme, with some chemicals exceeding 100% cost increases.
Table 13: Chemical Cost Increases
Chemical 2021-22 Contract 2022-23 Contract8 % Increase
Alum $336 ton $450 ton +34%
Fluoride $1,760 ton $3,211.40 ton +82%
Chlorine (Cl2) $0.68 gal $1.40 gal +106%
Sodium Hydroxide (NaOH) $0.76 gal $1.28 gal +68%
Polymer $0.68 lb $0.95 lb +40%
Liquid Oxygen (Lox) $1.28 gal $1.30 gal +2%
For FY 2022-23, budgets have been approved contingencies that are anticipated to be sufficient to
accommodate these increases. It is uncertain when these cost increases will stabilize, and it is unlikely
that costs will return to historic averages.
General Inflation
Several indices corroborate what the Utilities Department is seeing reflected in the cost of operations.
The Municipal Cost Index (MCI), an index designed to reflect the effects of inflation on providing municipal
services, peaked at a 12.51% annual increase in April 2022. For comparison, the year-over-year percent
changes for MCI as of September for the last seven years are in the table below.
Table 14: Municipal Cost Index (MCI) Year-over-year
7 The initial amount was only a partial amount of the bargaining parameters and was insufficient to meet
negotiated parameters.
8 One-year contract with an option to re-negotiate in 6 months due to volatile markets.
Budget Report Pg. 13 Page 385 of 489
Enterprise Funds: Water
Increased Staffing Costs
The completion of the Benchmark Compensation Study resulted in more competitive salaries for City staff.
While this helps with recruitment and retention of qualified staff, it results in increased costs to provide
water services. In addition to increased compensation of direct Utilities staff, the Utilities Department
expects substantial increases in contributions to the Cost of Service and Cost Allocation Plan, due the
expansion of internal services provided by the City. The full impact of related salary increases will be better
understood once the Cost of Service and Cost Allocation Plan are completed.
Deferred Rate Increases
On June 18, 2019, Resolution No. 11023 was approved by the City Council, authorizing annual water rate
increases of 5.5% , effective July 1, 2019 and July 1, 2020 respectively. The July 1, 2020 water rate increase
was deferred to February 1, 2021 and reduced to 3.6% (Resolution No. 11202). The deferral and reduction
of the proposed rate increases was enacted to accommodate community members who had been
economically impacted by the COVID-19 pandemic.
Through four months of billings in FY 2022-23, it is estimated that revenues are $175,000 less than
anticipated due to the deferred and reduced rate increase outlined in Resolution No. 11202. Cumulatively,
since the deferral occurred on July 1, 2020, Water Fund revenues are estimated to be $1.58 million less
than originally anticipated.
Calendar Year MCI YoY % Change (September)
2022 9.14%
2021 10.80%
2020 1.04%
2019 0.55%
2018 3.24%
2017 3.41%
2016 1.13%
Budget Report Pg. 14 Page 386 of 489
Enterprise Funds: Water
Water Fund Long Term Forecast
(A)
2021-22
(B)
2022-23
(C)
2022-23
(D)
2023-24
(E)
2024-25
(F)
2025-26
(G)
2026-27
Actual Budget Revised Projected Projected Projected Projected
REVENUES BY TYPE
1 Water Service Sales (Charges)16,110$ 16,329$ 16,329$ 17,472$ 18,695$ 19,349$ 20,026$
2 Utilities Base Fee Charges 5,615$ 5,754$ 5,754$ 6,157$ 6,588$ 6,819$ 7,057$
3 Sales to Cal Poly 1,140$ 1,045$ 1,045$ 1,096$ 1,174$ 1,285$ 1,389$
4 Cal Poly Capacity & Resilience 114$ 259$ 259$ 249$ 249$ 266$ 273$
5 Reclaimed Water Sales (Recycled Water)1,210$ 995$ 995$ 1,065$ 1,140$ 1,180$ 1,221$
6 Development Impact Fees 5,162$ 1,370$ 1,370$ 800$ 800$ 800$ 800$
7 Investment and Property Revenue 207$ 50$ 50$ 50$ 50$ 50$ 50$
8 Long Term Debt Proceeds 2,397$ -$ 873$ 873$ -$ 8,000$ -$
9 Grants and Subventions 1,849$ 1,395$ 963$ 698$ -$ -$ -$
10 Miscellaneous (Other) Revenue (706)$ 309$ 309$ 239$ 250$ 239$ 239$
11 Rate Assistance Subsidy (15)$ (100)$ (100)$ (100)$ (100)$ (100)$ (100)$
12 TOTAL 33,084$ 27,407$ 27,848$ 28,598$ 28,845$ 37,887$ 30,955$
13 EXPENDITURE BY CATEGORY
14 Salaries & Benefits 5,175$ 4,968$ 5,249$ 5,525$ 5,784$ 5,963$ 6,147$
15 Operating Expenditures 11,449$ 13,532$ 13,593$ 13,990$ 14,328$ 14,648$ 14,943$
16 Capital Outlay 5,706$ 5,085$ 16,882$ 6,905$ 5,348$ 11,977$ 5,793$
17 Debt Service 2,307$ 2,443$ 2,443$ 1,870$ 1,869$ 1,866$ 2,391$
18 Transfers Out 2,517$ 2,312$ 2,312$ 2,620$ 2,970$ 3,321$ 3,488$
19 TOTAL 27,154$ 28,340$ 40,479$ 30,911$ 30,299$ 37,776$ 32,761$
20 EXPENDITURE BY FUNCTION
21 General Government 2,517$ 2,312$ 2,312$ 2,620$ 2,970$ 3,321$ 3,488$
22 Debt Service 2,307$ 2,443$ 2,443$ 1,870$ 1,869$ 1,866$ 2,391$
23 Capital Carryover 10,199$
24 Water Source of Supply 11,072$ 10,969$ 10,969$ 11,175$ 11,559$ 12,261$ 11,809$
25 Water Treatment 4,593$ 4,795$ 4,796$ 5,760$ 6,042$ 5,103$ 6,562$
26 Water Distribution 3,772$ 5,442$ 5,610$ 6,374$ 4,433$ 11,311$ 5,222$
27 Water Resources 501$ 571$ 571$ 589$ 607$ 625$ 645$
28 Water Administration 1,355$ 1,370$ 1,433$ 1,455$ 1,500$ 1,546$ 1,593$
30 Utilities Revenue (Billing)266$ 308$ 308$ 317$ 327$ 337$ 347$
31 Non Departmental*772$ 130$ 1,838$ 750$ 993$ 1,405$ 706$
32 TOTAL 27,154$ 28,340$ 40,479$ 30,911$ 30,299$ 37,776$ 32,761$
33 CHANGES IN FINANCIAL POSITION
34 Working Capital - Beginning 28,503$ 17,478$ 34,725$ 21,930$ 19,452$ 17,833$ 17,780$
35 Revenues over (under) Expenditures 5,930$ (933)$ (12,631)$ (2,313)$ (1,454)$ 112$ (1,806)$
36 Working Capital - Year End before CalPERS 34,705$ 16,545$ 22,095$ 19,617$ 17,998$ 17,945$ 15,974$
37 CALPERS Down Payment 272$ 165$ 165$ 165$ 165$ 165$ 165$
38 Working Capital - Year End 34,433$ 16,380$ 21,930$ 19,452$ 17,833$ 17,780$ 15,810$
39 Operating Reserve 4,290$ 4,651$ 4,719$ 4,801$ 4,990$ 5,160$ 5,394$
40 Assigned to Encumbrances 594$
41 Rate Stabilization 2,286$ 2,313$ 2,313$ 2,472$ 2,646$ 2,745$ 2,847$
41 Other Reserves (i.e. UFL Trust Fund)166$ 176$ 176$ 176$ 176$ 176$ 176$
43 Unreserved Working Capital - Year End 27,098$ 9,240$ 14,722$ 12,003$ 10,022$ 9,700$ 7,393$
* Staffing contingency, miscellaneous CIP expenditures, and assigned project balances.
** Includes carrover balances for multi-year CIP projects
Table L2: Water Fund Five-Year Forecast
(in thousands)
Revised with Mid year
Budget Report Pg. 15 Page 387 of 489
Enterprise Funds: Sewer
SEWER FUND SUMMARY___________ _____________________________________________
Revenue
Sewer sales are trending on track with revenue projections and revenues in prior fiscal years. At the time
of writing this report, revenues only reflect three months (or 25%) of sewer sales because of billing timing.
Sewer service charges, base charges, sales to Cal Poly, and other miscellaneous utilities set up fees
comprise about 95% of anticipated revenues.
Table 15: Sewer Fund Revenue
Sales to Cal Poly is trending lower after inflated September 2021 billings, when Cal Poly drained a tank
that resulted in 1.48 million gallons of billable outflow. Sales to Cal Poly also tends to have higher billings
in the last half of the fiscal year because during the beginning of the fiscal year Cal Poly is not in session.
Other major sources of revenue in the Sewer Fund include $728,888 through the Cal OES Hazard
Mitigation Grant Programs and $657,265 through the Proposition 1 Integrated Regional Wate r
Management Implementation Grant. The Sewer Fund has not received these funds yet because they are
contingent on WRRF project (SLO Water Plus) timelines.
The fund remains on track to meet revenue targets and short-term operational, capital expenditure, and
reserve needs.
Operating Expenses
As projected in the Adopted Supplemental Budget 2022-23, costs related to chemicals, electricity, and
capital project delivery continue to increase. Industry-specific increases have exceeded general inflation
and are not anticipated to normalize this fiscal year. Chemical and electricity cost increases will continue
to impact the Sewer Fund, as these expenses amount to more than 18% of the annual operating budget.
The recent compensation study also contributed to higher expenditures. Operating expenses are on track
with appropriated budget allocations.
Budget Report Pg. 16 Page 388 of 489
Enterprise Funds: Sewer
Table 16: Sewer Fund Operating Expenditures
Mid-Year Budget Changes: One mid-year budget adjustment is being requested as outlined below:
Table 17: Water Mid-year Operating Budget Request Current Amount
Budgeted
Amount
Requested
New Total
Administrative Adjustment for Bargaining Unit Parameters
resulting from Compensation Study Salary Increases9
$102,654 $226,817 $329,471
The Sewer Fund Long Term Forecast: Challenges and Considerations
Industry-specific increases, general inflation, and increased staffing costs continue to impact the Sewer
Fund. Additionally, deferral of rate increases has resulted in substantial reduction in revenues. Early
analysis indicates that proposed rate increases in the next financial plan may exceed historic averages.
Industry-Specific Increases
Some of the most substantial increases in cost of operations were industry-specific increases in capital
projects, electricity, and chemicals. For capital projects and electricity, costs have risen as much as 20%.
Chemicals are more variable and extreme, with some chemicals exceeding 100% cost increases.
Table 18: Chemical Cost Increases
Chemical 2021-22 Contract 2022-23
Contract10
% Increase
Sodium Hypochlorite (NaClO) 0.74/gallon 1.55/gallon 109%
Ferrous Chloride (FeCl2) 1.31/gallon 3.85/gallon 194%
Sodium Bisulfite (NaHSO3) 0.95/gallon 1.28/gallon 35%
Sodium Hydroxide (NaOH) 0.79/gallon 1.39/gallon 76%
Polymer 1.25/gallon 1.65/gallon 32%
For FY 2022-23, budgets have been approved with contingencies that are anticipated to be sufficient to
accommodate these increases. It is uncertain when these cost increases will stabilize, and it is unlikely
that costs will return to historic averages.
9 The initial amount was only a partial amount of the bargaining parameters and was insufficient to meet
negotiated parameters.
10 One-year contract with an option to re-negotiate in 6 months due to volatile markets.
Sewer Fund Operating Expenditures FY 2021-22 Actual Budget Year-to-date
Actual % Expended
Salaries 2,878,352$ 3,415,564$ 1,480,538$ 43%
Retirement/Benefits 644,084$ 794,925$ 339,436$ 43%
Contract Services 696,410$ 1,510,102$ 976,175$ 65%
Utilities 541,456$ 942,423$ 349,100$ 37%
Other Operating Expenditures 1,433,539$ 1,681,054$ 1,265,094$ 75%
PERS Unfunded Liability/Retiree Healthcare 1,661,196$ 780,400$ 722,419$ 93%
Transfers Out 2,368,064$ 2,573,783$ 1,286,892$ 50%
Total 10,223,100$ 11,698,250$ 6,419,653$ 55%
FY 2022-23
Budget Report Pg. 17 Page 389 of 489
Enterprise Funds: Sewer
General Inflation
Several indices corroborate what the Utilities Department is seeing reflected in the cost of operations.
The Municipal Cost Index (MCI), an index designed to reflect the effects of inflation on providing municipal
services, peaked at a 12.51% annual increase in April 2022. For comparison, the year-over-year percent
changes for MCI as of September for the last seven years are in the table below.
Table 19: Municipal Cost Index (MCI) Year-over-year
Increased Staffing Costs
The completion of the Benchmark Compensation Study resulted in more competitive salaries for City staff.
While this helps with recruitment and retention of qualified staff, it results in increased costs to provide
wastewater services. In addition to increased compensation of direct Utilities staff, the Utilities
Department expects substantial increases in contributions to the Cost of Service and Cost Allocation Plan,
due the expansion of internal services provided by the City. The full impact of related salary increases will
be better understood once the Cost of Service and Cost Allocation Plan are completed.
Deferred Rate Increases
On June 18, 2019, Resolution No. 11023 was approved by the City Council, authorizing annual sewer rate
increases of 5.5% and 5%, effective July 1, 2019 and July 1, 2020 respectively. The July 1, 2020 sewer rate
increase was deferred to February 1, 2021 and reduced to 3.6% (Resolution No. 11202). The deferral and
reduction of the proposed rate increases was enacted to accommodate community members who had
been economically impacted by the COVID-19 pandemic.
Through four months of billings in FY 2022-23, it is estimated that revenues are $93,000 less than
anticipated due to the deferred and reduced rate increase through Resolution No. 11202. Cumulatively,
since the deferral occurred on July 1, 2020, Sewer Fund revenues are estimated to be $950,000 less than
originally anticipated.
Calendar Year MCI YoY % Change (September)
2022 9.14%
2021 10.80%
2020 1.04%
2019 0.55%
2018 3.24%
2017 3.41%
2016 1.13%
Budget Report Pg. 18 Page 390 of 489
Enterprise Funds: Sewer
Sewer Fund Long Term Forecast
(A)
2021-22
(B)
2022-23
(C)
2022-23
(D)
2023-24
(E)
2024-25
(F)
2025-26
(G)
2026-27
Actual Budget Revised Projected Projected Projected Projected
REVENUES BY TYPE
1 Sewer Service Charges 13,342$ 12,792$ 12,792$ 13,240$ 13,703$ 14,183$ 14,679$
2 Utilities Base Charges 4,893$ 4,816$ 4,816$ 4,984$ 5,159$ 5,339$ 5,526$
3 Sales to Cal Poly 1,147$ 1,026$ 1,026$ 1,008$ 998$ 974$ 961$
4 Cal Poly Capacity & Resilience 244$ 244$ 244$ 473$ 473$ 473$ 473$
5 Development Impact Fees 3,826$ 1,190$ 1,190$ 600$ 600$ 600$ 600$
6 Industrial User Permits 86$ 85$ 85$ 85$ 85$ 85$ 85$
7 Investment & Property Revenue 257$ 50$ 50$ 50$ 50$ 50$ 50$
8 Long Term Debt Proceeds 46,556$ 427$ 31,132$ 31,132$ -$ -$ -$
9 Grants and Subventions 97$ -$ 1,386$ 1,386$ -$ -$ -$
10 Miscellaneous Revenue (762)$ 306$ 306$ 359$ 359$ 359$ 359$
11 Rate Assistance Subsidy (13)$ (100)$ (100)$ (100)$ (100)$ (100)$ (100)$
12 TOTAL 69,672$ 20,836$ 52,927$ 53,217$ 21,326$ 21,962$ 22,633$
13 EXPENDITURE BY CATEGORY
14 Salaries & Benefits 5,184$ 4,889$ 5,245$ 5,515$ 5,764$ 5,942$ 6,125$
15 Operating Expenditures 2,668$ 3,542$ 3,632$ 3,878$ 4,059$ 4,213$ 4,340$
16 Capital Outlay 41,240$ 5,738$ 76,895$ 9,797$ 2,446$ 7,891$ 1,408$
17 Debt Service 1,380$ 1,381$ 1,381$ 1,382$ 7,006$ 7,099$ 7,090$
18 Transfers Out 2,368$ 2,574$ 2,574$ 2,906$ 3,283$ 3,645$ 3,827$
19 TOTAL 52,840$ 18,125$ 89,727$ 23,479$ 22,557$ 28,789$ 22,791$
20 EXPENDITURE BY FUNCTION
21 General Government 2,368$ 2,574$ 2,574$ 2,906$ 3,283$ 3,645$ 3,827$
22 Debt Service 1,380$ 1,381$ 1,381$ 1,382$ 7,006$ 7,099$ 7,090$
23 Capital Carryover 70,540$
24 Wastewater Collection 4,506$ 5,796$ 6,319$ 9,952$ 3,453$ 6,807$ 2,461$
25 Environmental Compliance 265$ 282$ 282$ 291$ 300$ 309$ 319$
26 Water Resource Recovery 41,607$ 5,429$ 5,445$ 5,272$ 4,946$ 7,422$ 5,468$
27 Utilities Revenue 272$ 310$ 310$ 320$ 329$ 339$ 349$
28 Water Quality Lab 698$ 832$ 922$ 950$ 980$ 1,010$ 1,041$
29 Wastewater Administration 1,366$ 1,399$ 1,398$ 1,434$ 1,478$ 1,523$ 1,570$
30 Non Departmental*378$ 122$ 555$ 972$ 782$ 635$ 665$
31 TOTAL 52,840$ 18,125$ 89,727$ 23,479$ 22,557$ 28,789$ 22,791$
32 CHANGES IN FINANCIAL POSITION
33 Working Capital - Beginning 35,237$ 24,589$ 47,774$ 10,806$ 40,374$ 38,973$ 31,977$
34 Revenues over (under) Expenditures 16,832$ 2,711$ (36,799)$ 29,737$ (1,231)$ (6,827)$ (158)$
35 Working Capital - Year End before CalPERS 52,348$ 27,300$ 10,975$ 40,543$ 39,143$ 32,146$ 31,819$
36 CALPers Additional Discretionary Payment 280$ 169$ 169$ 169$ 169$ 169$ 169$
37 Working Capital - Year End 52,069$ 27,131$ 10,806$ 40,374$ 38,973$ 31,977$ 31,650$
38 Operating Reserve 2,320$ 2,477$ 2,566$ 2,736$ 4,022$ 4,180$ 4,276$
39 Assigned to Encumbrances 496$
40 Rate Stabilization 969$ 932$ 932$ 962$ 993$ 1,025$ 1,058$
41 Other Reserves (i.e. UFL Trust Fund, SRF
Loan)171$ 20,768$ 3,134$ 6,087$ 6,087$ 6,087$ 6,087$
42 Unreserved Working Capital - Year End 48,112$ 20,588$ 4,174$ 30,588$ 27,871$ 20,685$ 20,228$
* Staffing contingency, miscellaneous CIP expenditures, and assigned project balances.
** Includes carrover balances for multi-year CIP rojects
Revised with Mid-Year
Table L3: Sewer Fund Five-Year Forecast
(in thousands)
Budget Report Pg. 19 Page 391 of 489
Enterprise Funds: Parking
PARKING FUND SUMMARY___________ ____________________________________ ______
Revenue
In recent years, Parking revenue has very much been in flux due to the impacts of COVID-19. However,
based on revenue data for the first half of FY 2022-23, the Parking Fund is proposing no revisions to its
revenue projections as part of the mid-year process. When preparing revenue estimates for the year, staff
used a conservative approach considering a return to normalcy following the COVID-19 pandemic, lost
parking spaces due to the parklet program, and the impacts of newer bike lanes that reduce or minimize
metered parking. Staff also took into consideration rate increases and corresponding revenues, which are
effective as of January 1, 2023.
Based upon available information, trends, and financial forecast, the fund is currently positioned to
sustain planned operating and capital expenditures, meet reserve requirements, and cover anticipated
debt payments associated with the Cultural Arts District Parking Structure. This is attributable to the
adoption of additional revenue enhancement strategies and rate increases, additional enforcement staff,
and strategic capital project planning. Overall, the Parking Fund has collected approximately 50 percent
of projected revenues to date although there will be a dip in revenue during the holiday and spring season.
Based on revenue to date, there is no proposed revenue adjustment as part of the mid-year process.
Table 20: Parking Fund Revenue
Overall, the Parking Fund has realized approximately 56% of its projected revenues. Most revenue items
are near or above the 50 percent mark, as anticipated at the mid-year point. Staff will continue to monitor
revenues throughout the remainder of the fiscal year with attention to the impacts of rate increases and
technology improvements such as gateless entry and exit being made available. It is important to note
that some capital projects may have a short-term negative impact on parking revenues, although this
revenue loss will be made up for in the long run with the improvements.
Long Term Parking – 40 percent of this revenue item has been collected, which is near revenue projections
expected to date. This revenue is primarily based on long term parking for City and County employees,
which are typically billed quarterly. This also captures downtown residents and employees who pay for
monthly parking.
Other Revenue – 64 percent of this revenue item has been collected, which is consistent with revenue
projections expected to date. Other revenue includes rent and lease payments, miscellaneous revenue,
parking in lieu, and is primarily captured in the beginning of the given fiscal year.
Budget Report Pg. 20 Page 392 of 489
Enterprise Funds: Parking
Parking Fines – 55 percent of this revenue item has been collected, which is consistent with revenue
projections expected to date. An increase in enforcement efforts has led to a slight increase in citation
revenue but this will likely dip over the holidays and spring seasons.
Parking Meters – 51 percent of this revenue item has been collected, which is consistent with revenue
projections expected to date. Staff believes an increase in meter revenue may be realized with the
implementation of credit card capable meters throughout the city – rather than coin only meters.
Parking Structures - 47 percent of this revenue item has been collected, which is consistent with revenue
projections expected to date. Structure revenue has seemed to return to pre-COVID levels beginning in
May 2021 when the Farmer’s Market was reestablished and non-City staff who work in the downtown
area began to utilize the long-term parking program. These are positive indicators of a Parking Fund
moving toward fiscal sustainability. Revenue close to expected to date.
Transfers In – This revenue item accounts for a one-time transfer of $700,000 of American Rescue Plan
Act (ARPA) funds to offset revenue that would have been realized by keeping the first hour or parking
free.
Operating Expenditures
The Parking Fund is trending in line with the FY 2022-23 operating budget. Throughout the fiscal year, the
Parking Program has been closely monitoring operating expenses to ensure a strong fund balance to
support the Cultural Arts District Parking Structure, which is actively seeking a loan in the amount of
approximately $47 million. A major piece in securing this loan is meeting debt ratio requirements which
considers revenues in relation to operational expenses. To date, the parking fund has been successful in
carrying out core services while managing operating expenses.
Table 21: Parking Fund Operating Expenditures
Salaries and Benefits – To date, the program has expended approximately 37 percent and 31 percent of
the annual budget on salaries and benefits, respectively, and will likely see salary savings across the year.
There are current vacancies in the Parking Supervisor position, as well as vacancies in the Enforcement
Officer classification. Staffing shortages continue to have significant financial impacts on the Parking Fund
through unrealized revenues and w a major effort is underway to build out appropriate staffing in
combination with new technologies. If salary savings are realized at year end, this funding will help
support the fund balance to aid long term debt obligations.
Parking Fund Operating Expenditures FY 2021-22 Actual Budget Year-to-date
Actual % Expended
Salaries 880,347$ 1,358,826$ 498,396$ 37%
Retirement/Benefits 165,521$ 315,712$ 98,661$ 31%
Contract Services 713,922$ 882,592$ 595,731$ 67%
Utilities 170,905$ 221,933$ 101,353$ 46%
Other Operating Expenditures 373,041$ 367,107$ 247,332$ 67%
PERS Unfunded Liability/Retiree Healthcare 528,186$ 243,382$ 227,997$ 94%
Transfers Out 1,105,120$ 1,263,622$ 631,811$ 50%
Total 3,937,043$ 4,653,174$ 2,401,281$ 52%
FY 2022-23
Budget Report Pg. 21 Page 393 of 489
Enterprise Funds: Parking
Contract Services – The Parking Program has been conscious of spending for contract services over the
first part of the fiscal year, expending 67 percent of its budget. This amount includes obligated funds that
will be utilized for services throughout the remainder of the fiscal year. While still responding to deferred
maintenance, repairs, and infrastructure failures, in addition to cost escalation and supply chain issues,
the parking fund has balanced immediate needs while maintaining spending.
Other Operating Expenses – To date, the parking fund has expended 67 percent of its annual budget.
Again, this amount includes obligated funds that will be utilized for services throughout the remainder of
the fiscal year. Last fiscal year, the program experienced excess spending in contract services primarily
due to unanticipated increases in credit card merchant fees around payment transactions, print and
reproduction materials for citation and parking receipts, as well as materials and supplies for day -to-day
activities. The program also had to address daily impacts of transient activities in the structures including
vandalism, graffiti, and debris left behind.
Budget Report Pg. 22 Page 394 of 489
Enterprise Funds: Parking
Parking Fund Long Term Forecast
* Includes rate adjustments beginning in January 2023
** One time transfer of State & Local Recovery Funds to continue the first hour of free parking in the parking
structures through June 30, 2023
Budget Report Pg. 23 Page 395 of 489
Enterprise Funds: Transit
TRANSIT FUND SUMMARY___________ __________________ ________________________
Revenue
The City secured grant funding from the American Rescue Plan Act (ARPA) for 100 percent of operational
costs beginning in FY 2022-23 for three fiscal years that will provide emergency funding to recover from
operational impacts from COVID-19. These ARPA funds will supplement driver wages and lost fare
revenue. FTA 5307 funds will be used to purchase additional zero emission buses and support other
capital projects. The reduction in service levels resulted in cost savings that helped to offset lost revenues.
The unused balance of annual allocations of Federal 5307 and TDA Funds have were deferred for use in
FY 2022-23.
Ridership is a critical component of the on-going health of the Transit Fund. Necessary to secure State
Transit Development Act (TDA) funds is a requirement that 20 percent of the programs’ operating budget
be generated from local revenue – fares, bus passes, and payment for Cal Poly. During the previous fiscal
year and into this year, the Transit Program has experienced a dramatic increase in ridership and fare
revenue.
Staff have received updated allocation amounts from various sources and as a result, revenues have been
revised as outlined below. The increase in revenue now accounts for new, unanticipated discretionary FTA
5339 Funds that will support six (6) new buses estimated at $4.8 million. In addition, the fund is expected
to realize an additional $1 million of STA funds based on updated and actual apportionments. However,
there is often a delay in the posting of revenues because much funding is allocated from state and federal
programs which have varied funding cycles. At this time, the Transit Fund is on tracking as expected for
its annual revenues.
Table 22: Transit Fund Revenue
Operating Expenditures
The Transit Program is realizing savings in staffing as it is temporarily operating with reduced staffing
levels. In addition, the program is also operating with reduced service levels due to driver shortages. This
has resulted in savings in purchased transportation and maintenance. To date, the Transit Fund has
expended approximately 25 percent of its operating budget and as a result, no operating budget changes
are being requested. Transit will continue to monitor operations and match expenditures to revenues and
take a conservative approach to managing the fund.
Table 23: Transit Fund Operating Expenditures
Transit Fund Revenue Budget Actuals YTD Variance % Received Midyear
Revised
Total Midyear
Changes
1 Federal 7,248,297 - (7,248,297) 0%11,547,838 4,299,541
2 State 850,000 377,282 (472,718) 44%850,000 -
3 Local (Bus Fare)350,683 283,204 (67,479) 81%499,496 148,813
4 Other Revenue/ Interest 2,040,941 1,527,196 (513,745) 75%2,663,080 622,139
5 Total 10,489,921$ 2,187,682$ (8,302,239)$ 21%15,560,414$ 5,070,493$
FY 2022-23
Budget Report Pg. 24 Page 396 of 489
Enterprise Funds: Transit
Long Term Forecast
There are several large pending items looming in the Transit Program’s future that could have a significant
impact to the fund. Staff recently completed negotiations with Cal Poly University for a new long-term
Transit Service Agreement reflective of all operational costs, which extended the agreement for a two-
year term. The Transit Program outsources its Operations & Maintenance to a third-party vendor (First
Transit) and the current contract extension ends next year. The Transit fleet has six buses at the end of
their useful life and the program is focused on electric bus procurement, with delivery of new buses
estimated later this year. Federal funds made available via the use of Coronavirus Aid, Relief, and
Economic Security (CARES) funds for operating costs were used for the purchase of two electric buses.
The cost hurdle of transitioning to an electric fleet is being addressed with federal and state funding.
Transit Fund Operating Expenditures FY 2021-22 Actual Budget Year-to-date
Actual % Expended
Salaries 186,668$ 244,470$ 71,249$ 29%
Retirement/Benefits 22,601$ 27,717$ 7,964$ 29%
Contract Services 2,660,140$ 3,648,029$ 3,138,045$ 86%
Other Operating Expenditures 333,990$ 379,049$ 320,439$ 85%
PERS Unfunded Liability/Retiree Healthcare 125,469$ 33,928$ 29,477$ 87%
Transfers Out 226,183$ 365,544$ 182,772$ 50%
Total 3,555,050$ 4,698,738$ 3,749,946$ 80%
FY 2022-23
Budget Report Pg. 25 Page 397 of 489
Enterprise Funds: Transit
Transit Fund Long Term Forecast
Table L5: Long-Term Forecast (in thousands )
(A)
Actual
2021-22
(B)
Budget
2022-23
(C)
Revised
2022-23
(D)
Projected
2023-24
(E)
Projected
2024-25
(F)
Projected
2025-26
(G)
Projected
2026-27
REVENUES
1 Federal - 5307 Operating 1,679$ 2,946$ -$ -$ -$ 1,694$ 1,728
2 Federal -5307 Preventative Maintenance 199$ 203$ -$ -$ -$ 211$ 215
3 Federal - 5307 Capital -$ -$ 1,795$ 1,800$ 1,800$ -$ -
4 Federal - Cares Act -$ -$ -$ -$ -$ -$ -
5 Federal - ARP (American Rescue Plan)
Formula 898$ -$ -$ -$ -$ -$ -
6 State TDA (Transportation Development Act)
STA 305$ 312$ 359$ 367$ 374$ 381$ 389
7 State TDA LTF 2,084$ 1,729$ 2,648$ 2,701$ 2,755$ 2,810$ 2,866
8 State TDA Allocated to RTA, SLOCOG and
Other Off-the-Top Obligations*537$ 646$ -$ -$ -$ -$ -
9 State - APCD (Air Pollution Control District)-$ -$ 500$ -$ -$ -$ -
10 PG&E Grant -$ 50$ 142$ -$ -$ -$ -
11 Farebox Revenue 173$ 200$ 200$ 240$ 250$ 260$ 260
12 Cal Poly Agreement 538$ 650$ 650$ 900$ 900$ 900$ 900
13 State - SB1 -$ -$ 9$ 100$ 100$ 100$ 100
14 State - LCTOP (Low Carbon Transit
Operations Program)-$ 291$ 344$ -$ -$ -$ -
15 ARPA Discretionary -$ 4,100$ 4,100$ 4,100$ 4,100$ -$ -
16 FTA 5339 B Discretionary -$ -$ 4,800$ -$ -$ -$ -
17 Interest on Investment 31$ 7$ 13$ 14$ 14$ 14$ 14
18 TOTAL REVENUES $ 6,443 $ 11,133 $ 15,560 $ 10,221 $ 10,293 $ 6,370 $ 6,472
Expenditures & Obligations
19 Staffing 336$ 299$ 299$ 314$ 330$ 346$ 363
20 Contract Services 2,799$ 2,896$ 2,896$ 2,983$ 3,072$ 3,164$ 3,259
21 Fuel 321$ 320$ 320$ 352$ 352$ 352$ 352
22 Maintenance 244$ 240$ 240$ 257$ 275$ 294$ 315
23 Other Operating Expenditures 39$ 125$ 125$ 131$ 137$ 144$ 151
24 Cost Allocation 226$ 366$ 366$ 402$ 410$ 418$ 427
25 RTA, SLOCOG and Other Off-The-Top
Contributions from TDA -$ -$ -$ -$ -$ -$ -
26 Transfers Out -$ -$ -$ -$ -$ -$ -
27 Capital 2,634$ 4,410$ 4,410$ 2,055$ 2,115$ 2,175$ 2,175
28 TOTAL Expenditures & Obligations: $ 6,600 $ 8,655 $ 8,655 $ 6,493 $ 6,691 $ 6,894 $ 7,042
CHANGES IN FINANCIAL POSITION
29 Beginning Fund Balance $ 2,716 $ 2,538 $ 2,538 $ 9,432 $ 13,147 $ 16,736 $ 16,200
30 Revenue Over/(Under) Expenses (157)$ 6,906$ 6,906$ 3,728$ 3,602$ (524)$ (570)
31 Ending Fund Balance before CalPERS $ 2,559 $ 9,444 $ 9,444 $ 13,159 $ 16,748 $ 16,212 $ 15,630
32 CalPERS Downpayment 21$ 13$ 13$ 13$ 13$ 13$ 13
33 Ending Fund Balance $ 2,538 $ 9,432 $ 9,432 $ 13,147 $ 16,736 $ 16,200 $ 15,617
34 Policy Reserve Level - 20%740$ 849$ 849$ 888$ 915$ 944$ 973
35 Undesignated Fund Balance $ 3,411 $ 4,373 $ 4,373 $ 12,259 $ 15,821 $ 15,256 $ 14,644
2021-23 Financial Plan
Revised with Mid-Year
Budget Report Pg. 26 Page 398 of 489
Department Updates
D: Department Performance Measure and Work Program Updates
Departments constantly operate in an environment of knowns and unknowns and the budget preparation
considers that type of environment. Most day-to-day tasks fall into the category of known tasks with
known workload associated. In addition to day-to-day activities, departments expect and budget for some
level of unknown or emergent priorities. When unexpected issues arise and unknown workload emerges,
divisions may experience a resource imbalance and thus slow progress on projects or strategic initiatives.
The workload assessment below took place in advance of the recent storm-related emergencies and as
such those impacts are not reflected.
The COVID-19 pandemic greatly increased the number of unknowns while requiring immediate action to
respond to the community’s needs. Additionally, retaining and recruiting employees has become
progressively more difficult. Almost all departments are experiencing staffing challenges, illnesses and
vacancies, which lead to increased workload and re-prioritization of tasks for positions that are staffed.
As part of the mid-year review, departments evaluated the core objectives of each program’s
performance on the following scale:
Green indicates that the program is managing workload with the appropriated budget for current work
program tasks.
Yellow indicates that a program is managing workload with the appropriated resources but may need
additional resources or objective recalibration in the future to maintain long-term work programs. This
could be due to higher-than-normal activity and does not necessarily indicate ongoing need. These
programs will be monitored closely over the next quarter.
Red indicates that a program is not currently meeting objectives and needs either additional resources
or recalibration to manage workload. This could be due to higher-than-normal activity or may indicate
ongoing need. Solutions are provided for each of these programs.
83%
17%
GRAPH D -1: OPERATING PROGRAM STATUS OVERVIEW
Green - 62 programs Yellow - 13 programs
Budget Report Pg. 27 Page 399 of 489
Administration Department
Administration & IT Department
Performance Measure Update
Objective Measure 2021-22
Actual
2022-23
Target
2022-23
Mid-year
Provides City-wide
communications to the
community.
Strategic Goal: Citywide
Communications
Open City Hall Participant Satisfaction
Rating 94% 90% 94%
# of City News Releases 148 175 95
Provides reliable IT resources
to the organization and
community.
Strategic Goal: Information
Technology
Maintain City Network Reliability Uptime
Status 99.95% 99.9% 99.95%
Data backed-up in Gigabytes 185,448 173,000 189,752
Number of GIS layers maintained 915 905 915
Economic Stability
Strategic Goal: Economic
Recovery and Stability
Contacts with businesses regarding
starting, expanding, and/or staying in the
City
85 75 52
One-time funds used for direct aid to local
businesses and non-profits $320,000 $250,000 $185,000
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 11
# of Open Space Conservation Plans that
will guide the long-term protection and
stewardship of natural resource values
while guiding appropriate public use
0 1 011
Strengthens the City’s
commitment to advancing
Diversity, Equity and Inclusion
Strategic Goal: DEI
# of City-wide DEI Trainings Offered 21 10 5
Funds for High-Impact DEI Grants Awarded $012 $150,000 $300,000
11 Staff anticipate the Righetti Hill Open Space Conservation Plan will be completed in May 2023.
12 FY 2022-23 DEI high impact grants have an extended grant amount of $300,000 to account for the missed grant
cycle in FY 2021-22.
Budget Report Pg. 28 Page 400 of 489
Administration Department
Work Program Evaluations
City Administration
During the first half of the fiscal year the City’s Communications Program helped redesign the City’s
website, www.slocity.org, support the launch of a new community service application called Ask SLO,
engage the community using the City’s social media channels, and increase the overall news coverage
of City programs, services and projects. Email subscribers increased up by 12%, social media followers
by 18% and website users by 21%. The Communications Program is focused on two major projects in
the second half of the fiscal year: (1) creating a Crisis Communications Plan and (2) updating the City’s
Public Engagement and Noticing Manual to increase diverse participation in City policy decision-
making, services, programs, and projects. The City’s Legislative Program advocated for the City’s
interests on items including the future of Diablo Canyon and will continue that effort. Staff also
continued worked on several grant applications, Over the next six months the Administration division
will be working with the City’s grant writer to apply for grants, development of a citywide workforce
planning tool, and support of the survey and Community Forum for the 2023-25 Community Forum
Financial Plan.
Cultural Activities
The City continues to support the City-County Library and the Performing Arts Center (PAC). The City
provides an annual contribution to the operating costs and funds various capital improvements for the
library. The City is also a partner with Cal Poly and the Foundation for the Performing Arts (FPAC) in the
operation of the Performing Arts Center. Operations are overseen by the Performing Arts Commission,
with the Mayor and the City Manager serving as the City's representatives.
Economic Development
The Economic Development program is a major contributor to the Economic Recovery, Resiliency &
Fiscal Sustainability Major City Goal. Currently all tasks and goals are ahead of or on schedule. The use
of the of the $250,000 that was allocated to fund programs to aid in economic recovery and resiliency
that were “to be determined” during the budget process are being used to support various programs
including the Downtown activation programs, return of the Buy Local Bonus program, the Eat Local
Bonus program, additional childcare grants, employee recruitment support and other smaller
initiatives. The update of the Economic Development Strategic plan is in process with expected
completion in July of 2023. Some tasks are dependent on coordination with the Office of Diversity,
Equity, and Inclusion may be delayed due to the transition in the DEI Manager position.
Diversity, Equity, and Inclusion (DEI)
In November 2022, the Office of DEI presented recommendations for the DEI High Impact Grant to the
City Council. There was $1.5 million in requested funding and after a thorough review, 21 organizations
were recommended by the HRC to be partially or fully funded totaling $300,000 in grants. Additionally,
the Office of DEI continues to lay the foundation for strong collaborations across the City organization
through a number of trainings offered across the City including building inspectors, new employees and
employees in leadership development programs. Staff are currently working with the Economic
Development team to create a DEI Business Grant program intended to center service and support of
underrepresented/underserved communities. Lastly, staff are in the middle of the Human Services
Grant (formally GIA) cycle, which will distribute $150,000 to local non-profits mainly focused on serving
the unhoused population.
Sustainability & Natural Resources
The Office of Sustainability & Natural Resources continues to manage the Major City Goal for Climate
Action, Open Space, and Sustainable Transportation in coordination with other responsible
departments. Recent significant accomplishments since the last reporting period include City Council’s
Budget Report Pg. 29 Page 401 of 489
Administration Department
adoption of the Climate Action Plan for Community Recovery Volume III: Work Program for 2023-2027.
Staff have also played a significant contributing role in the preparation of the forthcoming Climate
Adaptation and Safety Element of the General Plan, which is currently available for public review and
will be considered by City Council on January 17, 2023. Staff are also currently preparing the City’s first
ever Community Forest Plan in coordination with the Public Works Department; a Study Session on this
item takes place on January 10, 2023 and is scheduled for City Council’s consideration of adoption on
April 4, 2023.
Community Promotion
The Community Promotion work program, directed by the Promotional Coordinating Committee (PCC)
has implemented several programs to enhance the quality of life for residents and the experience for
visitors in our community. Those programs include the development of a public art promotional plan
including the production of over 5,000 photography and video assets for the City’s public art portfolio,
the development and implementation of the Neighborhood Campaign including maps and promotional
resources to support the economic vitality of business areas downtown and beyond, the oversight of
the Support Local campaign including the Buy Local Bonus and Eat Local Bonus promotions, and finally
awarding $134,000 out of $200,000 in grant funding to local arts and culture organizations. The
remaining grant funding will be considered for award between January -June 2023.
Tourism Business Improvement District (TBID) Program
The TBID, through Visit San Luis Obispo continues to promote travel to and within San Luis Obispo
including the implementation of the comprehensive Tourism Marketing and Business Plan resulting in
overnight stays in the city. The TBID is actively implementing a robust paid, owned and earned program
inviting visitors to the city mostly from drive markets statewide as well as fly-markets. Visitation to the
city has recovered to pre-pandemic occupancy rates and stay revenue has exceed historical rates
resulting in $1 million of Transient Occupancy Tax each month during the first quarter of the year. The
TBID extended the MidWeekend Summer Promotion in July - August, resulting in 421 qualified stays of
which 20% were staying in SLO for the first time and generated over $200k in hotel room revenue. The
TBID is anticipating a typical slowdown in the shoulder season and will bring back the MidWeekend
Spring Promotion in February – March 2023 to offset those impacts.
Downtown Business Improvement District (BID) Program
The Downtown BID provides the resources to Downtown SLO to provide ongoing activation and
placemaking activities in the Downtown including Farmers’ Market, Concerts in the Plaza and the
Holiday Parade. In additional to the traditional activities the City has also partnered with the BID to
activate store fronts, add additional ambassadors and provide additional activations.
City Clerk
The City Clerk’s office administered the 2022 Municipal Election and filled a higher-than-normal
number of unscheduled vacancies on Advisory Bodies. The City continues to see an uptick of large
public records requests. As of mid-year, the Clerk’s office has prepared agendas for 17 City Council
Meetings and processed 126 Council Agenda Reports.
IT - Network Services
Network Services recently completed the City and Police Department Storage Area Network (SAN)
project, replacing vital hardware that provides data storage for all City systems and operations.
Progress has been made on KVEC Hill Radio Tower and Shelter, with all of the construction plans
completed. It is expected to break ground in the first quarter of 2023. Network Services was also
successful in pursuing a Local Agency Technology Assistant grant from the California Public Utility
Commission, receiving $103,000 to fund the Broadband Strategic Plan work that kicked off in the Fall.
Year-to-date, IT Support Services has handled 1,773 support tickets. The tickets covered a range of
support activities, including hardware and software installation, computer upgrades, and
Budget Report Pg. 30 Page 402 of 489
Administration Department
troubleshooting. Support services included creation of new Laserfiche workflows to enable users to be
more efficient with their workload. While recruiting for the IT Assistant position in the Fall, the Help
Desk was able to keep up with the workload with the help of IT Systems Engineers within the Division.
Control Systems Administrators have been busy with the two major Utilities construction projects that
are in progress: the Water Resource Recovery Facility upgrade and the Water Treatment Plant
upgrade.
IT - Information Services
The workload for GIS Team has increased as GIS-centric applications, such as Cityworks and EnerGov,
expands the use of GIS technology. These GIS based platforms serve as the City’s central asset
management system (Cityworks), and permit and plan management system (EnerGov). The nature of
GIS tasks also changed to include GIS server configurations, publishing map services, and creating online
applications. The homeless camp tracking application is an example of using Web GIS using ArcGIS
Online, City’s hosted ArcGIS Servers, and ArcGIS Pro desktop application, and automating processes
using Python scripts. It also integrates with Laserfiche. The GIS Team recreated maps for Climate
Adaptation and Safety Elements. The GIS team celebrated Geography Awareness Week and GIS Day
on November 16th, 2022.
The Motion Core Team continues to improve the Oracle system functionality, with a current focus on
Project Portfolio Management (PPM) for Capital Projects. The Motion Team recently enabled Oracle
Guided Learning which provides step-by-step instructions to users for many common tasks.
Budget Report Pg. 31 Page 403 of 489
City Attorney
City Attorney
Performance Measure Update
Strategic Goals Measure 2021-22
Actual
2022-23
Target
2022-23
Mid-Year
Timely and Responsive
legal advice and
support
Strategic Goal:
Department Objectives
Administrative Citation Appeals
Received by the City 122 120 44
Appeals closed without need of a
hearing13 39 25 12
City assisted corrections to defective
appeals to allow access to hearing 18 15 3
City facilitated hearings on the record
without need for personal appearance
by Appellant
29 40 12
# of hearing days scheduled 14 7 11
Legal Training &
Compliance
Strategic Goal:
Department Objectives
# of Council, Staff, and Advisory Body
legal trainings, legal updates, and
compliance advisory sessions
614 12 6
Municipal Litigation &
Prosecution
Management
Strategic Goal:
Department Objectives
Percentage of Claims Resulting in
Litigation 14%15 <5% 2%
Liability Claims Against the City
Reviewed/Managed 67 70 35
Work Program Evaluations
City Attorney
Following an extended organizational assessment last fiscal year, as part of the mid-year budget review,
this program was approved to double its number of regular staff – from three to six – and to continue
the use of contract staffing for additional support. In response, two regular and one contract support
staff positions were filled in July 2022 and after the job description was finalized, a Deputy City Attorney
was hired in late November. While onboarding staff, the department also transitioned to a new, larger
office space. This allowed each staff member to have a desk or office with additional areas for future
13 Closed in some way that did not include a decision being issued (e.g. withdrawn by appellant, dismissed for
untimely filing, voided by the issuing department)
14 The ongoing time and attention demanded by the organizational assessment and the delay in bringing that effort to a close
(so its staffing and other recommendations could be implemented) has reduced the amount of time available for planning and
presenting these legal training sessions.
15 This high percentage is from nine cases. Eight of those are: a person injured during after-hours, reckless use of a City park; an
unfair labor practices charge; a writ petition to force the City to permit a disqualified cannabis business applicant; damage done
to a gas main during a contractor’s work for the City; a writ to force the issuance of a permit for a yard structure built in
violation of the building code; injuries due to a trip and fall on private property near a City sidewalk; a bicyclist fatality; and
injuries due to a limb falling from a privately owned tree. The eighth lawsuit was known to not involve the City but was filed to
include it anyway out of the plaintiff’s abundance of caution. The City was eventually dismissed from the case following
production of discovery responses that supported its non-involvement.
Budget Report Pg. 32 Page 404 of 489
City Attorney
interns, but it also took time and energy to plan and execute the move. In addition to all the location
and staffing transitions, just before the Deputy’s first day, the Assistant City Attorney (“ACA”) began
her maternity leave. The City Attorney has coordinated various contract resources to pick up the ACA
workload, but the absence of an experienced, full-time staff attorney is another reason the program is
shown in yellow. All the various structural factors since July (time to recruit and train new staff; planning
and executing the move; ACA absence) combined with continuing high-volume matters and complex
litigation demands to continue to strain the department’s capacity to gain ground on workload in the
short term.
Among the important work the department still needs to complete is presenting to Council and City
staff the implementation plan for the recommendations adopted from the department organizational
assessment. Not every suggestion made by the consultant in the final org assessment was feasible and
several were lacking enough detail to be launched. Staff hope to have a complete plan to share by
February 2023.
Notwithstanding continuing challenges, the City Attorneys Department has: implemented its
centralized legal services intake request process; guided a contract template revision process;
supported the re-structuring of the IWMA and SB 1383 compliance; provided additional staff trainings
related to emerging case law around encampment response, law enforcement legal and legislative
updates, and code enforcement inspection and enforcement legal frameworks; provided legal support
for the development of the CAMP standards, and the homeless response strategic plan; supported
negotiations and agreement on a major projects Community Workforce Agreement; resolved a
California Voting Rights Act demand against the City without litigation; and managed the successful
defense and/or settlement resolution of several other significant litigation or potential litigation
matters, including obtaining court approval of a City petition for a receivership to remediate a property
presenting a significant community health and safety risk . As the City Attorney’s Office trains new staff
and implements process improvements, the Department continues to provide legal advice and support
to all City Departments, City Council, Planning Commission and City Advisory bodies on Capital Projects;
development review and Development Agreement implementation; personnel management,
investigations, and disciplinary processes; cannabis program implementation and oversight; public
records request review and response; administrative citation appeals process management; and
general municipal contracting, election law, tax and fee, first amendment, conflict of interest, ethics
and Brown Act compliance.
Budget Report Pg. 33 Page 405 of 489
CSG & Community Development Department
Community Services Group (CSG)
Community Development • Parks & Recreation • Public Works • Utilities
The Community Services Group is comprised of the City’s four public -facing, service departments. The Community
Services Group Administration team did not have official performance measured identified as a part of the 2021-23
Financial Plan but will identify and outline those as a part of the next Financial Plan.
Work Program Evaluations
Community Services Group Administration
The CSG Administration team provides oversight and support on the production of core services,
advancement of Major City Goals and objectives, identification of new departmental efficiencies,
communication with the public, policy research and City staffing transitions. The CSG Admin team
consists of the Assistant City Manager, Business Services and Administrative Manager, and part-time
Administrative Assistant; with oversight of the Analysts in the CSG Departments. The CSG Analyst Team
has focused on budgetary support as Fiscal Officers for their respective departments in preparation for
the new Financial Plan process, including the creation of a Budget and Oracle 101 guide for CSG
managers and supervisors to reference and track their budgets. CSG Admin also implemented a
centralized resident engagement platform to organize and streamline public requests and inquiries to
reduce the current manual process; respond to the community more effectively and efficiently;
enhance the way citizen issues are identified, responded to and tracked (both internally and externally);
and generate reports and data on requests, historical responses and response timeliness. This tool has
been used most often by the CSG departments and helps with efficiency and effectiveness in public
communication and engagement with issues. Policy work has included focus on the Shopping Cart
Ordinance implementation, including coordination of proactive and reactive shopping cart retrieval and
businesses’ Plan submittal review. CSG Admin has managed and guided the next Financial Plan’s CIP
process, after significant efforts have focused on right sizing staff, changing some positions to better
reflect the services needed, and creating new processes so that collaboration can occur cross
departmentally. CSG Admin remains focus on recruitment as two Analysts were promoted to other
positions within the organization.
Budget Report Pg. 34 Page 406 of 489
CSG & Community Development Department
Community Development Department
Performance Measure Update
Objective Measure 2021-22 Actual 2022-23
Target
2022-23
Mid-Year
Affordable housing
production
Strategic Goal:
Housing
Number of affordable housing
units secured through
entitlements or construction
11216 50 40
Provide Excellent Customer
Service
Strategic Goal:
Other Department Objectives
Customer survey response
positivity rate 88%17 80% 83%
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
84%18 85% 86%
Development Review
activities
Strategic Goal:
Other Department Objectives
The target goal of meeting cycle
times 75% of the time reflects an
increase in more complex and
resource intensive development
review activities.
78% 75% 78%
Building Inspections
Strategic Goal:
Economic Stability
Percent of inspections performed
the next working day 96% 85% 99%19
Work Program Evaluations
Community Development Administration
The Administration team provides process management and support for all the divisions within the
Community Development Department. The division also provides support for the department’s
advisory bodies and respective Major City Goals work programs. To better assist customers and
residents, a survey has been created for customers who finalize plans through the Community
Development Department to provide feedback on their experience. The survey has been successfully
collecting feedback since September 2021. From the surveys, most customers expressed complete
satisfaction with their experience with the department. Results of customer service experiences will be
shared more broadly on an ongoing basis and as part of the General Plan Annual Report and Mid-Year
Budget. Additionally, to increase customer satisfaction and reduce staff time, an online building
inspection platform was launched in August 2022. The platform is integrated into the Department’s
Citizen Self-Service Portal and allows customers to schedule inspections at any time, while not being
limited to the department’s hours of operation. The division experienced recruitment challenges for
16 The number of affordable housing units that have been secured is higher than anticipated due to the sporadic
timing in the entitlement process that is hard to project.
17 Target for FY2022-2023 reduced to 80 percent due to a discrepancy with the initial target and changing to be in
line with the Customer Satisfaction Score (CSAT) standard.
18 Response rate to code enforcement cases was impacted due to staff vacancies in FY 2021-22.
19 With the recent technology upgrades, Building Inspection staff has been able to receive inspection requests
through the online citizen self-serve portal. This new system has been effective in managing inspection requests,
and as a result, staff will be recommending a new Key Performance Indicator for the 23-25 financial plan.
Budget Report Pg. 35 Page 407 of 489
CSG & Community Development Department
the Supervising Administrative Assistant position since last fiscal year, however, the position was finally
filled in December 2022. This position helps oversee the staff and projects within the Administration
division.
Planning
The Planning Division continues to receive high work volumes associated with planning entitlement and
building permit application reviews. After a continuous recruitment, the division successfully hired one
Associate Planner yet two are still vacant. Staff completed an update to the Inclusionary Housing
Ordinance, an update to the Cannabis Ordinance, and a draft update to the General Plan Climate
Adaptation and Safety Element. Staff have also reviewed and analyzed numerous new state laws for
applicability and consistency with the local Municipal Code. Although the Planning Division has staffing
vacancies, the salary savings are used to hire consultant support to fulfill cycle times.
Engineering
The Engineering Division plays an important role in the Development Review process, ensuring that off-
site improvements required to support private property development are designed to meet City
standards. In addition, the Engineering Division reviews grading and drainage plans to ensure that
stormwater management is consistent with the City’s Drainage Design Manual. The division evaluates
planning applications and building permits for compliance stormwater management, in addition to the
direct applications received for subdivision map checks and Public Improvement Plans. The Engineering
Division has played a major role in facilitating housing production in the City and supports the Housing
and Homelessness Major City Goal by providing plan check and mapping services for projects such as
the Orcutt Area subdivisions, San Luis Ranch, and Avila Ranch. In November, a contract staff engineer
was added to the team to help with workload and improve continuity in anticipation of the retirement
of a long-term City employee that supervises this work group.
Building and Safety
Code Enforcement:
The Code Enforcement team promotes health and safety throughout the City by increasing awareness
of City policies, investigating reported code violations, and proactively patrolling for violations. The
team has been fully staffed since the start of the fiscal year and has started enforcing the new Shopping
Cart ordinance. Staff have responded to 48 shopping cart requests, and efforts have resulted in the
removal of 71 abandoned carts. Staff are also currently conducting public outreach to develop the Safe
Housing Program. Members of the Code Enforcement team have started meeting with rental
community stake holders and have hosted a focus group session with landlords and representatives
from property management companies. The team is also working closely with Cal Poly’s Off -Campus
Housing Program Coordinator to develop rental housing educational materials and programs.
Building Inspections:
The number of Building inspection requests have remained high, with over 3,000 inspections conducted
since the start of the fiscal year (consistent with the number of requests received during this time last
year). The team has become incredibly efficient in providing timely inspections as a result of consistent
staffing and technology upgrades. The building inspection team was fully staffed and supplemented by
a consultant inspector that is stationed at, and funded by, the San Luis Ranch Development. There is an
active recruitment for a fulltime building inspector due to a staff member promoting into the Plan's
Examiner position. During this transition, the Building and Safety Division is utilizing the recently
promoted plans examiner to assist with inspection requests. Additionally, the Building Inspection team
has one Stormwater Code Enforcement Officer who has conducted over 450 active construction project
inspections since the start of the fiscal year to help ensure the City’s ongoing compliance with the
State’s stormwater regulations.
Budget Report Pg. 36 Page 408 of 489
CSG & Community Development Department
Permits:
Building permit activity has remained high and is consistent with the numbers seen during this time last
year. The permit counter staff were able to successfully recruit a fulltime plan’s examiner (a position
which had been filled by a consultant for more than two years). The consultant has remained on-staff
in a limited capacity to help with the transition since the recruit came from the building inspection
team. The public counter has also added a retired annuitant to serve as the on-duty plan’s examiner
during open office hours to assist permit technicians in answering technical questions. Permit Counter
staff have also successfully integrated SolarAPP+ plan reviews into the City’s regular business process.
This review service allows residential solar project applicants to obtain instant, automated permits
through the City’s online self-service portal. Community Development received a $40,000 grant from
the State of California to implement this program and, since the start of the program on August 5, 2022,
69 automated solar permits have been issued.
Housing Policy and Programs
Homelessness Response staff completed a second study session on the Homelessness Response
Strategic Plan in collaboration with the County’s efforts and have conducted extensive community
engagement in preparation for the City Council’s further review in Winter 2023. Staff have also
implemented a GIS-based App used by all field staff to operationalize standards, coordinate, and
address encampments. Staff also recently hired a contract Administrative Specialist for Homelessness
Response. The City’s third-party “Below Market Rate Housing” administrator, Housekeys, has assisted
in placing eligible applicants into 12 rental units and 6 for sale units. Staff completed an update to the
Inclusionary Housing Ordinance and have reviewed several new state housing laws for applicability to
the City. All of these efforts support the Housing and Homelessness Major City Goal.
Budget Report Pg. 37 Page 409 of 489
Finance Department
Finance Department
Performance Measure Update
Objective Measure 2021-22
Actual
2022-23
Target
2022-23
Mid-year
Enables & enhances
transparency, accountability &
integrity.
Strategic Goal: Fiscal Policies
# of calendar days following year-end
until ACFR is issued 180 170 170
# of audits/reviews conducted/ # of
additional agreed upon procedure audits
performed
2/2 2/2 2/2
Protects & prudently manages its
financial resources.
Strategic Goal: Fiscal Policies
# of funds within fund balance
requirements/ total funds with fund
balance requirements
8/8 8/8 8/8
Net direct annual debt per capita
(General Fund) $43 $43 $43
Twelve-month total rate of return/City
portfolio -3.66% 3% 0.21%
Work Program Evaluations
Finance Administration
Finance Administration oversees the management and administration of the City's finance operations.
The Division includes the Finance Director, an Administrative Assistant (currently held vacant to fund a
Payroll Analyst), and a half-time Oracle Subject Matter Expert (contract). The Division also began the
year with an Infrastructure Financing Analyst, however this position now sits in the Community Services
Group in order to work more closely with the Community Development Department. On December 8,
2022, the department welcomed a new Finance Director for about one month of overlap with the out-
going Finance Director before she retired at the end of December. The Administrative Assistant position
became vacant in the summer, and the City Manager approved using that full-time equivalent position
(FTE) and the associated salary savings to hire a Payroll Analyst which was more mission-critical role at
the time. Finance staff are assessing department needs and may request to add or reclassify an FTE
with the 2023-25 Financial Plan. 20
Budget
The Budget division coordinates and oversees of the City's annual budget, quarterly financial reports,
and two-year financial plan development. The budget division has remained nimble over the last
several years of economic volatility with careful budget management and fiscal forecasting. The City
began its 2023-25 financial planning process in November 2022. The Principal Budget Analyst has been
working closely with all of the departments to understand the needs of the organization and began
budget development in late January.
Revenue Management
The Revenue Management division successfully hired for two vacant Accounting Assistant positions
over the last six months. Both incumbents are excelling in their new roles. Once staff is fully trained,
the Division will be able to enhance its enforcement services for both unpaid accounts receivable
20 Council approval is needed to add FTEs.
Budget Report Pg. 38 Page 410 of 489
Finance Department
accounts and businesses operating without a business license and tax certificate. The team has also
spent time reviewing cash-handling practices across City facilities to ensure that the controls in place
show the highest level of stewardship of City revenues. The Division intends to finalize new controls
into standard operating procedures as part of an updated Revenue Management manual.
Purchasing
The Purchasing division successfully presented to the Council updates to the City's purchasing policy
that incorporated updates to the City's competitive bid thresholds to ensure staff has operational
flexibility to provide its services to the public. The Division introduced new sections to the Financial
Management Manual that strengthened insurance risk management and contract procedures. The
Division co-led a cross-department project with the City Attorney's office to update the City's contract
templates for purchasing and non-purchasing contracts. The Division presented a position paper and
successfully advised the Council not to adopt a local purchasing preference ordinance, which ensures
the City will receive the best total cost value for its purchases. The Division successfully finished filing
the City's Covid FEMA reimbursement applications, totaling 13 applications for $671,457.56 and kept
track of 2785 individual Covid-19 timesheets for a total of 23,967 hours worked. The Division leads the
coordination of the State SB-1383 recycled paper mandate and has presided over significant
improvements, going from approximately 5% of paper purchased to recycled content (mainly just office
paper); to around 50% recycled (incorporating more paper items like tissues, post-its, paper towels,
etc.). Projects for the remaining part of the year include investigating a contract lifecycle management
(CLM) solution in coordination with the City Attorney's office. The CLM goal is to potentially streamline
contract negotiation processes and enhance contract repository management across all City Divisions.
The Division is leading a project to update the City's Amazon business account to search for 'local' SLO
businesses first, to encourage local spending, and to search for 'climate friendly' products to support
the City's Climate Action Plan. The project will also aim to reduce shipping frequency for orders by
combining shipping to consolidated shipping days. This change will dramatically reduce the City’s
shipping emissions in the Amazon account. The FTE Purchasing Specialist position will be vacant
starting on January 10, 2023. Staff recommends assessing the needs across the Finance Division to
include possibly reclassifying the FTE position to reflect the current business needs.
Accounting
The Accounting division has completed the preparation of the audited financial statements for FY 2021-
22 and has, again, submitted the report to GFOA for the Excellence in Financial Reporting Award. The
payroll function welcomed two new employees, a Payroll Specialist that took the position vacated when
the prior employee became Fire's Administrative Analyst, and a new Payroll Analyst. In addition to
learning the Oracle payroll system, the new employees were instrumental in issuing W2s and year-end
tax reports. Other accounting activities include the preparation of the annual Cost Allocation Plan and
supporting departments in processing vendor payments.
Support Services & Non-Departmental Expenses
Support Services and Non-departmental divisions are in place to help effectively budget and account
for Citywide costs not associated with a specific operating program or project. Both elements are
appropriately budgeted for the City's current needs. The program budget is primarily made up of
contingency budget that is only activated when a department is faced with salary cost increases due to
bargaining unit results, minimum wage increases, or unexpected vacation buyouts that cannot be
absorbed within the department's appropriated budget. The contingency amount is determined based
on Council's approved parameter amounts.
Budget Report Pg. 39 Page 411 of 489
Fire Department
Fire Department
Performance Measure Update
Objective Measure 2021-22
Actual
2022-23
Target
2022-23
Mid-year
Deliver Timely Emergency
Response to ensure rapid care
and hazard mitigation.
Strategic Goal: Other Department
Objectives
Meet the Response Time objective as
defined by General Plan
Safety Element of 4 minutes to 95% of all
lights-and-siren
emergencies in the City.
6:02 4:00 6:24
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.
8:44 7:00 8:25
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.
1:37 1:00 1:51
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.
3:00 2:00 2:24
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.
5:34 4:00 5:44
Provide timely service to the
development community.
Strategic Goal: Housing
% of Fire Department Development
Review activities
completed within published cycle times.
61% 80% 64%
Work Program Evaluations
Fire Administration
Fire Administration consists of five full-time positions (FTEs). This includes the addition of the new
Emergency Manager hired in spring of 2022. The program provides strategic leadership to the
department and entire organization. Fire Administration plans, directs, and evaluates all Fire
Department programs and activities. The Emergency Manager addition has relieved other staff from
dedicating significant resources to addressing the Disaster Preparedness and Assistance program but
rather focus on other program objectives in the department’s strategic plan.
Emergency Response
The 45 FTE staffed Emergency Response Program is responsible for protecting life, the environment,
and property by responding to a wide variety of emergencies, including, but not limited to: medical
emergencies, structure fires, vegetation fires, hazardous materials incidents, vehicle fires/accidents,
flooding, utility emergencies, and a wide range of urgent public assists.
This program is categorized as yellow due to its underperformance in meeting the Total Response
Time (TRT) Performance Measure Goals. To help meet the travel time component of TRT, the
Budget Report Pg. 40 Page 412 of 489
Fire Department
department would require a significant investment in additional resources, such as adding a
strategically placed 5th fire station or increasing the number of units to help improve travel time. A 5th
station is planned at to be added in the Southwest side of the City once the Avila Ranch development
project reaches 80% occupancy levels. Call processing time has increased, and the Fire department
staff will continue to collaborate with Police Department staff to help improve call processing time.
Hazard Prevention
This program is categorized as yellow because it has not been able to fully meet its development
review performance targets in FY 2022-23. A new half time inspector was added at the beginning of
FY 2022-23. Training new staff along with absences due to staff illnesses affected program turnaround
times early in the year. New projects including hotels, apartments and multi-family condominiums
continue to increase the total number of mandated inspections, hindering the department’s ability to
keep up with demand. The department anticipates a significant performance improvement, already
being realized in December, as staff is trained and fully present.
Training Services
The Fire Training Program schedules, coordinates, and documents both in-house and outside training
and certification for fire department staff. The program also works to maintain and improve the health
and fitness of fire department employees. The overall program goal is to support highly qualified, well
trained, safe, healthy, and fit employees. The Training Services program continues to utilize dedicated
funding to implement the injury reduction program for emergency response staff. This has included the
purchase of equipment and professional contracted services for functional movement screening and
training. Overall, the department has observed a decrease in the frequency of on-the-job injuries in the
short term.
Recruit Academy
The Recruit Academy is usually scheduled every other year but due to staffing needs, it will take place
two years in a row and is set to begin in January 2023. The additional budget needed to run the academy
was appropriated using carryover budget from last fiscal year.
Fire Apparatus Services
The Fire Apparatus Program performs fire apparatus services, maintenance, and repair of light and
heavy fire apparatus and vehicles. The budget is currently enough to meet the overall program
objectives and activities.
Fire Station Facilities Support
The non-staffed Fire Stations Facilities Support Program helps manage and maintain the City’s four fire
station facilities, their grounds, and miscellaneous equipment, appliances, and furnishings. The budget
is currently enough to meet the overall program objectives and activities.
Disaster Preparedness and Assistance --
This program is now fully staffed, funded and meeting objectives. The Disaster Preparedness and
Assistance program focuses on three areas; 1) ensuring City personnel can provide appropriate rescue
and relief services following a major disaster such as earthquake, flood, nuclear power accident,
hazardous material spill and wildland fire: 2) providing information and education on disaster
preparedness, and fire safety the general public: and 3) provides assistance to communities outside of
the City of San Luis Obispo as part of the State’s Mutual Aid system.
Budget Report Pg. 41 Page 413 of 489
Human Resources Department
Human Resources Department
Performance Measure Update
Objective Measure 2021‐22
Actual
2022‐23
Target
2022‐23
Mid‐year
Integrated HR Services
Average days between injury and Workers’
Compensation claim filed. 5 3 4
Achieved lower severity of Workers’
Compensation claims than the risk pool Yes Yes Yes
Annual liability claims payment under the Self‐
Insured Retention amount. No Yes No
21
Employee
Development &
Growth
Percentage of On‐Time Employee Performance
Evaluations 86% 95% 90%
Percentage of Internal Promotions 49% 40% 30%
Training Sessions Coordinated 56 35 12
Engaged and Aware
Culture
Number of Policies Communicated 44 5 78
Informational Sessions Coordinated 357 90 264
Work Program Evaluations
Human Resources Administration
The program is categorized as yellow due to strained staffing resources resulting from increased
demands organization‐wide in recruitment, classification review, benefits, leaves, and performance
management. Human Resources provides support throughout the organization on benefits
administration, compensation, recruitment, labor relations, performance management, training and
development, and legal compliance. As approved in the 2021‐23 Financial Plan, Human Resources staff
have been added to support the organization’s needs, responsibilities have been reassigned, and
employees are transitioning into roles tailored to achieve the best mix of knowledge and skills to meet
Departmental goals. The team is in a transitional stage with training and development being a primary
focus. Between new hires and internal promotions, there is only one HR staff member out of eleven
full time employees that has been in their current role since July 2021.
In order to support the organization’s sustained and elevated recruitment workload, the department
has needed to pause process improvements, specifically related to the recruitment. The Department
continues to partner with the Centre for Organization Effectiveness to provide professional
development trainings for employees and supervisors across the organization. Staff also continues to
promote enhancement of the Oracle Human Capital Management system.
21 As detailed in the Insurance Fund summary, the cost of claims this year exceeded the appropriated budget for payments and
an allocation from the undesignated insurance fund was authorized to cover these costs.
Budget Report Pg. 42 Page 414 of 489
Human Resources Department
Wellness
The Wellness program supplements the Risk Management program by providing employees tools and
education to improve their physical and emotional well-being, thus enhancing employee productivity
and performance. Yoga classes are offered on a weekly basis and ergonomic assessments were
coordinated though the California Joint Powers Insurance Association (CJPIA). CJPIA-funded
preventative mental health services were offered to public safety employees to help staff following the
officer fatality at the end the last fiscal year; this was a valuable resource and efforts are underway to
provide it more broadly on a longer-term basis. The City’s SLO Healthy and Smart (SLO HAS) Committee
has hosted gatherings for City employees to network and share ideas. They will continue to work on
advancing the healthy and smart culture across the organization. The functional mobility program at
the Fire Department continues to show reductions in injuries and promotes safety and a similar
program for the Police Department started in November 2022. The Employee Assistance Program (EAP)
through Aetna resources for living continues to be available to all employees.
Insurance Fund
The Insurance Fund is a sub-fund of the General Fund that is used to pay insurance-related expenses
and maintain reserves for current claims, potential settlements, and insurance premiums. Within the
Fund is a Self-Insured Retention (SIR) from which excess liability claims are paid. At mid-year, 97% of
the SIR has been expended and some higher value claims have been settled recently. City Council
approved an additional allocation of $300,000 from the fund’s balance. This is expected to cover
expenses through the remainder of the fiscal year. Staff anticipates there may be future increases in
workers’ compensation expenses in the upcoming year due to several factors, such as the uptick in
mental health related claims and industrial disability retirements, among other factors that influence
rates. However, the Insurance Fund remains funded at a sufficient level to cover all known and
anticipated expenses, including claims paid from the SIR. The balance was established to sustain
fluctuations in claims and related expenses and reflects a 75% confidence level based on trends over
the previous five years. To minimize insurance claims and expenditures from the Fund, staff also tracks
market trends and conditions that affect insurance rates and periodically performs root cause analyses
to identify ways to reduce injuries and accidents. Staff regularly reviews contracts to ensure the City
has adequate insurance coverage for its protection.
Budget Report Pg. 43 Page 415 of 489
Parks and Recreation
Parks and Recreation Department
Performance Measure Update
Objective Measure 2021-22
Actual
2022-23
Target
2022-23
Mid-year
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 MCGs
# of Department Community
Events 13 20 18
# of non-profit permitted
Facility Uses 92 120 58
# of program registrations 4,866 3,500 2,607
# of program offerings 584 320 355
# of childcare spots
filled/offered 1,131 1,100/1,100 1,633/1,63322
# of children receiving subsidy
61 CAPSLO
45 City
Scholarship
51 CAPSLO
27 City
Scholarship
62 CAPSLO
19 City
Scholarship
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 3 6 123
# of updated or new parks
and amenities in process 4 5 3
Creates and fosters a sense of
community through citizen involvement
Strategic Goal: Maximize Community
Resources & Collaborations (P&R
Strategic Plan Goal)
# of volunteers/hours 79/1495
hours 400/1200hrs 60/710.5
hours
# of temporary Public Art or
Cultural Art Events 4 5 2
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 6,295 7,900 6,65324
# of Facebook followers 3,920 5,200 4,2623
# of Virtual Program Offerings 4 15 025
Open Space Preservation and
Enhancement
Strategic Goal: Nurture Open Space (P&R
Strategic Plan Goal), Climate Action MCG
# of miles of Open Space trails
maintained 62
61.75
65
# of staff hours dedicated to
fuel reduction 1,687 2,500 1,655
# of encampment site clean-
ups removed from Open
Spaces
85
60
77
22 Summer programming was expanded, and the lifting of COVID-19 restrictions allowed for more enrollments.
23 Righetti Ranch, Emerson Park, Bike Park projects will initiate community forums in Winter & Spring.
24 Number reflects follower counts through December 6, 2022.
25 Number reflects a return to in-person events, programs, activities after facility restrictions were lifted.
Budget Report Pg. 44 Page 416 of 489
Parks and Recreation
Work Program Evaluations
Recreation Administration
Last fiscal year, staff completed, and Council endorsed a new master plan and general plan update, now
entitled “The Parks + Recreation Blueprint for the Future: 2021-2041.” The Recreation Administration Division
is now working to advance the identified short, mid, and long-term priorities outlined in the plan. Design firms
have been hired to initiate work on the Laguna Lake Dog Park and Orcutt Area Park system. The North Broad
Street Park project is set to start in Winter 2023, along with the Cheng Park revitalization project. Staff is in
the RFP process for the $2.8M State Park grant-funded Emerson Park project, as well as beginning the design
for the in-house design of the Mitchell Park revitalization project (addition of bocce ball court, updated
seating and BBQ pavilion) to meet the specifications of its Prop 68 Grant award.
Facilities
The Facilities Division's indoor and outdoor facilities are recovering from the COVID-19 indoor mandates
and are now available for permitted reservations. The Division continues to support the Open SLO Program
through the daily set-up, maintenance and clean-up of the Downtown Dining program in Mission Plaza.
Community youth and adult sports continue to utilize City fields and courts for tournaments, leagues, and
practices. The Library Conference and Community rooms, the Ludwick Community Center, Senior Center,
and Meadow Park Building, are all open to the community for social gatherings, meetings, and general uses.
The Division is also accepting reservations for events at the Jack House for the upcoming 2023 season. The
Parks and Recreation Department office rehabilitation project was completed in July with staff and all
operations moved from the Ludwick Community Center back to the main office. The division processed 25
City-wide Special Events applications so far in FY 2022-23.
Youth Services
The Youth Services Division is categorized as yellow because of staffing challenges associated with
recruitment and retention. Youth Services provided quality childcare to the community at all five (5)
elementary school sites located within the City (C.L. Smith, Hawthorne, Pacheco, Sinsheimer, and Bishop’s
Peak), and expanded summer camp programming to assist in fulfilling community needs. With the transition
to full-time site directors to regular, full-time positions, the retention of these positions has been more
successful; however, recruitment for in-classroom supplemental staff who are qualified to work as Aides,
Teachers and Head Teachers has been extremely challenging, resulting in waitlists for many of the school
sites. The Division is experiencing recruitment challenges which were already dire pre-pandemic but have
become increasingly challenging. In addition, many Youth Services staff are Cal Poly students and with
scheduling challenges surrounding academic calendars and student housing, staffing program times is
challenging. With childcare at the center of the community’s economic recovery, Youth Services staff continue
to provide care for before and after school, as well as school breaks. California state licensed facilities are
currently provided on five SLCUSD school sites, in five classrooms and five licensed-exempt childcare
programs. The City also has contracted with the District to provide care for the District's "free" care program
during the mid-day times for Kinder and TK aged children. Youth Services staff continues to look for creative
solutions to accommodate as many children as possible to allow more children into the program from current
waitlists. Children with Special Needs are accommodated at all school sites and programs. Ongoing
professional development is provided to Youth Services staff, including mandated Child Abuse reporting, First
Aid and CPR, program and curriculum development, positive guidance strategies and inclusive programming,
safety, and large group management.
Community Services
This Division is categorized as yellow because expanded programming has impacted staff resources and
additional recreational supplemental staff are necessary to present ongoing sports clinics, community
events and expand senior programs. Currently three full-time staff coordinate, organize, and facilitate the
division's events and activity clinics, and even serve as substitute umpires/referees, which is not sustainable
Budget Report Pg. 45 Page 417 of 489
Parks and Recreation
as programs occur during the day, evening, and weekends. The Community Services Division manages youth
and adult athletics leagues and recreational activities, presents free and low-cost community events, oversees
the SLO Skate Park, and promotes healthy lifestyles and social interactions through expanded contract
instructional programs. It also supports the Jack House Docents and facility, manages the Community Gardens
programs at 5 locations, coordinates city-wide volunteer opportunities, and coordinates programs with the
Senior Center Board. With the hiring of a new Recreation Coordinator last fiscal year, staff was able to offer
new and expanded senior programing, bolster its community garden program, and offer a greater selection
of instructional classes. In lieu of the SLO Triathlon Event, the Community Services Division initiated a variety
of low-cost community-based events that continued into the first quarter of FY 2022-23, such as the Monday
Meet-Ups and Rec is Rad youth activity series at local parks. In September, staff re-introduced the annual
September Scramble, which attracted over 600 participants. In October, the Boo Bash expanded and over
1,000 community members attended. As community events and youth and adult sports returned to full
programming, the Division relied on both full- and part-time staff to make these events a reality. In order to
meet the citywide demand for volunteer support, the Department requisitioned and hired a new Volunteer
Coordinator who will begin in Winter of 2023.
Ranger Service
Ranger Service continues to effectively maintain and patrol the City’s 4,050 acres of open space which
includes the expanded public access (new property and trails), increased encampment clean-ups in the open
space and creeks, and increased community usage in all of the 13 City-managed open space properties. The
Ranger Service Division continues to dedicate resources for supporting fuel management (WUI) and to clean
up trash and debris in the City’s Open Spaces and creeks. Staff are in progress in planning and developing
new trails at Righetti Ranch (Righetti Hill) and Irish Hills (Bog Thistle), and the new Miossi property (Panoramic,
Quercus). Ranger Service has expanded its educational programming with more environmental education
videos, social media postings, Ranger-instructed classroom/event presentations, and Ranger-led interpretive
hikes. The Winter Evening Access program (November - March at Cerro San Luis) has also remained incredibly
popular with the significant impacts occurring in the month of December.
Aquatics
This division is categorized as yellow because of staffing recruitment and retention challenges which affect
the operational hours. Due to factors such as recruitment and retention, in addition to the continuing local
and national lifeguard and overall workforce shortage, the Aquatics Division and the SLO Swim Center
continue to operate with modified programming during the non-summer months. Specific activity hours were
reduced for the 50-meter and therapy pool to maintain the required swimmer-to-lifeguard ratio. The Aquatics
Division has been actively recruiting and hiring additional lifeguard staff - including the Aquatic Specialist
position, requiring significant resource impacts to the Coordinator and Manager. Staff anticipate a return to
standard programming hours by Spring 2023, with additional lifeguard training courses and community
interest for working as a lifeguard. Management continues to provide monthly staff trainings, including First
Aid, CPR, water rescue techniques, customer service and diversity trainings. The Aquatics Division provides
program and facility support for the SLO Seahawks Swim Club, local SCUBA shops, Mission Prep High School,
and has a short-term agreement to support Atascadero High School for the next two years. Staff offer public
lifeguard training and instructor courses throughout the year.
Golf Course
This division is categorized as yellow due to the continued challenges associated with the aging irrigation
infrastructure and Pro Shop facility remediation at the course. The Golf Division continues to provide
standard operating services at the Laguna Lake Golf Course (LLGC) seven days per week. The general
maintenance and operations of the course continued to be severely impacted by leaks caused by aging
irrigation lines requiring additional maintenance time and facility closures, as well as increased water costs.
With the main Pro Shop closed due to major flooding from a significant winter storm (December 2021), a
Budget Report Pg. 46 Page 418 of 489
Parks and Recreation
temporary trailer serves as the Pro Shop and staff offices. The remediation project for the Pro Shop recently
completed the removal and sanitization of all golf equipment (Phase 1) and the removal of all damaged areas
within the facility (Phase 2).
Staff are currently in the process of contracting services for the renovation of the Pro Shop (Phase 3), with an
expected completion date of Spring 2023. Staff recently implemented a new credit card system and replaced
its golf cart fleet at the course, which will enhance customer experience. The new Golf Course concessionaire
began offering services at the course in December 2022. Management staff continue to implement
community programming at the course, including upgrades to the driving range, golf tournaments, golf
lessons, middle school classes, Cal Poly kinesiology classes, and youth golf clinics.
Budget Report Pg. 47 Page 419 of 489
Police Department
Police Department
Performance Measure Updates
Objective Measure 2021-22 Actual 2022-23 Target or
forecast
2022-23
Mid Year
Reduce Crime
Strategic Goal: Economic
Recovery, Department
Mission
# of total Part I Crime by
year.26 2,069 2,050 81927
Provide safe roadways
for pedestrians, vehicles,
and bicyclists.
Strategic Goal: Patrol
Objectives, Department
Mission
# of total traffic
collisions.
Vehicle: 399 450 199
Pedestrian: 32 25 18
Bicycle: 36 35 15
# of targeted
enforcement operations
conducted under the
Office of Traffic Safety
Grant per year
DUI Checkpoints: 2 2 0
DUI Saturation Patrols:
28 24 14
Traffic Enforcement
Operations: 8 12 0
Distracted Driving
Enforcement: 7 10 0
Bicycle & Pedestrian
Enforcement: 5 6 2
Reduce Homeless related
Calls for Service through
proactive engagement.
Strategic Goal: Economic
Recovery, Department
Mission, Patrol Objective
# calls related to
homelessness 7441 7000 2565
# of unique individuals
contacted by CAT 578 600 211
# of Family & Agency
Reunification 17 35 4
# of Local Permanent
Housing 3 31 9
# of major camp
cleanups 13 12
37 individual camps
and 73.22 tons
collected
(Camp cleanups are
coordinated by
Public Works/Parks
& Rec staff)
# of Mental
Health/Substance Abuse
Treatment Referrals
127 130 76
26 Part 1 Crimes include: homicide, forcible rape, robbery, aggravated assault, burglary, and motor vehicle theft. Figures shown
represent calendar year.
27 Part 1 Crimes reported at Mid-Year represent figures from July 1 – December 8, 2022.
Budget Report Pg. 48 Page 420 of 489
Police Department
Work Program Evaluations
Police Administration
The department has been working to fill vacancies and increase recruitment efforts. Staff has identified
new recruitment methods such as placing advertisements in law enforcement magazines, billboard
advertisements, social media blasts, banners in the downtown, incentives, onsite recruitment events,
etc. Since July 1, the department has hired the following positions: two police officers, one police cadet,
two communication technicians, a crime analyst and a records clerk. The department also received
authorization to hire four contract Field Services Technician positions to help offset Patrol’s call load
and respond to non-emergency calls for service. In November, department staff issued a request for
proposals for consulting services to lead the department’s efforts in creating a 5 -Year Strategic Plan.
This work is scheduled to start in January.
Patrol
Patrol continues to be understaffed due to vacancies and long-term Worker’s Compensation
absences. As of mid-December, there are two officers in field training, and they should be released to
work independently by spring which will help with shift coverage. Special assignments continue to be
short staffed or unfilled.
For the period of July – mid December 2021, total overtime hours for the department were 8,200. In
comparison, this year for the same period, hours were similar at 8,100.
The department has continued to work with Transitions Mental Health to hire one mental health
clinician and one case manager, but recruitment has been challenging. Candidate interviews for the
case manager took place in November. Staff has selected a candidate and this person is currently in the
background check process and expected to start during the first quarter of 2023.
Investigations
The Investigations division is categorized as yellow because it is understaffed due to the impacts of
general Worker’s Compensation abscences. Despite being understaffed, the Investigations division has
been actively working several cases related to property crimes, child abuse, sexual assaults, and
homicides. The detective bureau has two positions that have been vacant for over 12 months due to
extended worker’s compensation leaves. One of the vacant detective positions is expected to be filled
in January.
Support Services
The Support Services division includes Dispatch and Records. Since July, the department has
successfully hired two communication technician positions. A dispatch supervisor position recently
became vacant, but the department is currently in the process of interviewing internal applicants for a
promotional opportunity. At this time, all communication technician positions are filled. The division
recently underwent a staff reorganization and is piloting a management change in the Dispatch Center.
A lieutenant has relocated from the police department to the Emergency Communication Center and
is now serving as the manager for the Center. This change has already yielded very positive results in
stabilizing a center that was in crisis, addressing staffing and morale issues, and provide the necessary
discipline for improved service to our community.
In November, the department launched a new software (SPIDR) which enables it to modernize customer
service by sending text messages to callers and providing updates and alerts related to the call. After
the incident has been closed out, a survey is also sent to the caller to solicit feedback about improving
customer service. So far, the SPIDR software has proven to be a useful tool.
Neighborhood Outreach
Budget Report Pg. 49 Page 421 of 489
Police Department
The Neighborhood Outreach division continues to meet objectives. Calls related to noise complaints
during the time period of January 2021 – November 2021 totaled 1369; during that same time period
this year, calls totaled 1365. The party registration program continues to be successful. From July to
early December there were 223 requests with 165 approved; there were only 14 warning calls and a
total of 4 citations. Staff estimates that total calls related to noise/party will decrease by 5% compared
to last year.
Traffic Safety
The traffic sergeant continues to manage the annual Office of Traffic Safety grant and conduct DUI
Checkpoints, traffic enforcement, and other targeted enforcement activities. A fully staffed traffic team
is supposed to include one sergeant and three officers; however, due to staffing shortages in patrol,
there are only two officers currently in the assignment.
Budget Report Pg. 50 Page 422 of 489
Public Works
Public Works
Performance Measure Update
Objective Measure 2021-22 Actual 2022-23 Target 2022-23 Mid-Year
Proactively enhances traffic safety by
providing a system of safe, reliable, and well-
maintained roadways, sidewalks, traffic
signals and streetlights.
MCG: Climate Action
Strategic Goal: Enhance Safe & Efficient
Transportation (PW Strategic Plan)
Pavement
Condition Index 7228 75 75
Bicycle network in
total miles (Class
I/II/III/IV) 12.1/29.3/25.0/1.2 14.7/31.0/24.8/4.0 14.5/31.3/25.3/1.429
Street miles
maintained 135 135 135
Enhance the City’s Urban Forest and maintains
visually appealing public spaces.
MCG: Climate Action
Strategic Goal: Proactively Manage Assets (PW
Strategic Plan)
# of trees
maintained 12,97030 12,970 13,026
Total acreage of
park inventory 58331 583 583
Provide high quality services to the
community through efficient and effective
delivery of capital improvement projects and
management of the City’s infrastructure.
MCG: Economic Recovery
Strategic Goal: Connect with our Community
(PW Strategic Plan)
Total value of CIP
Managed32 $55M $65M $30M
28 Decline in Pavement Condition due to pavement age. Pavement management projects included in the CIP are budgeted to
maintain pavement condition near the targeted PCI; however, pavement condition will still fluctuate year to year.
29 Note that mileage totals do not reflect existing Class III bike routes (shared streets) that have been upgraded to
Neighborhood Greenways (enhanced traffic calming, wayfinding and crossing improvements). Also, 2022-23 Mid-Year update
does not reflect several miles of additional Class IV bikeways to begin construction in 2023 as part of the North Chorro
Greenway project.
30 The Urban Forest Services Program recently completed an inventory of trees located within the public rights-of-way, parks,
and facilities. The urban forest number of managed trees has been aligned with the maintenance program scope of service.
Many trees in the City’s open space and riparian zones have been removed from the Urban Forest Services maintenance
metrics as these trees are maintained by the Parks and Recreation Department Ranger Services Program or Natural Resources.
The Urban Forest Program will bring forward information to City Council in January 2023 for a study session for future direction.
31 The total acres of Park inventory are 583, with 106 acres being improved with landscaping, play equipment, or turf.
32 Includes all CIP projects and funding including Utilities, Transit, Parking, Public Works and IT, among others.
Budget Report Pg. 51 Page 423 of 489
Public Works
Work Program Evaluations
Public Works Administration
Over the last six months, the Public Works Administration program effectively met its core services and
objectives. Right now, the division is hiring a CIP Administrative Manager. This new position will help greatly
with the management and reporting of the CIP program to deliver the City’s expanded CIP (as a result of the
passage of Measure G20). The division is also working with Parking and Transit staff to enhance service levels
by augmenting and modernizing parking facilities and utilizing state and federal funding for enhanced transit
services.
Parks Maintenance
The program is categorized is yellow due to the increased irrigation costs due to the recent drought. Over the
past six months, the Parks Maintenance program has continued to successfully provide the community with
safe facilities and well-maintained parks. Staff has promptly addressed broken equipment to ensure the
continued enjoyment of safe parks, while also experiencing an increase in service requests. Parks Maintenance
staff has been covering the workload while experiencing some vacancies, including the resignation of the Parks
Maintenance Supervisor in Fall of 2022. The Parks Maintenance program has had to respond to requests to
replace stolen and vandalized restroom fixtures and other park amenities. Discarded items and residual
campgrounds continue to impact resources.
The program has added a Beautification Gardner position to focus on gardening, horticulture, and landscape in
city parks, which is intended to elevate the overall appearance at various park locations. Reduced precipitation
has also led to higher-than-normal irrigation costs for the first part of the year and staff is closely monitoring
this variance and is one bright spot from the recent heavy rains. Staff vacancies, increased service requests, and
lower than anticipated rain will prove to be challenging on the program for the remainder of the fiscal year.
Overall, the Parks Maintenance budget is on track, and attention will be given to irrigation and water use
through the remainder of the year.
Swim Center Maintenance
The Swim Center Maintenance program continues to provide a safe and clean aquatic facility for the public’s
use while remaining on track with its budget. Because a large percentage of the operating budget is for utilities
and supply costs, there may be budget variances as inflation causes costs to increase above initial projections.
Staffing levels remain relatively stable and the program successfully completed the annual maintenance
closure, which was used to address a circulation pump repair, LED lighting retrofits, and bath house plumbing
repairs.
Urban Forest Services
The Urban Forest Program continues to operate in a limited staffing capacity as was expected for a majority of
FY 2021-22. Following a program assessment of the current program structure, staff presented the assessment
findings to the City Council in early January and received direction for the future of the Urban Forestry Program.
Despite the reduced staffing level, the program has utilized a tree pruning contactor to prune approximately
40 percent of the City’s street trees over the past year. Pruning of all street trees withi n the downtown (zone
9) was completed in the summer of this year, which expended a large percentage of the programs contract
services budget. Capital funds will be utilized for Tree Pruning through the end of the fiscal year to keep the
program within budget.
Facilities Maintenance
Budget Report Pg. 52 Page 424 of 489
Public Works
Facilities Maintenance is currently fully staffed and is therefore able to complete most service requests using
internal staff. Facilities Maintenance will outsource work to contractors when needed to manage the workload
and while training new staff on program operations. As the City grows and facilities are becoming more modern,
facility square footage increases as well as the complexity of building systems. The Program is seeing an
increase in the number of requests for work outside the program scope, which results in staff working overtime.
The Facilities Maintenance team also plays an active role in a number of capital projects and facility upgrades,
including the roof repair at Fire Station 1. The program maintains approximately 230,000 square feet of
buildings with four technicians in the program.
Streets & Sidewalk Maintenance
The Streets Maintenance Program continues to address sidewalk and pavement needs throughout the city.
During rain events, the Streets Maintenance Program performs storm patrol and responds to numerous service
requests throughout the year. The program also completes trash and green waste management for the
corporation yard and manages the metal recycling program. The Streets Maintenance Program has provided
traffic control support for numerous downtown projects during the recent street repaving to aid with the City’s
economic vitality, in addition to encampment cleanups along arterial roads. The program has added three
positions in effort to meet downtown maintenance and cleanliness objectives.
Traffic Signals & Lighting
The program is categorized is yellow due to the need to repair and replace signal and lighting equipment due
to unanticipated vehicle or storm damages. Safe and efficient traffic signal operations have been maintained
through regular preventative maintenance, repairs to damaged traffic signal equipment, and ongoing
refinements to traffic signal timings and equipment, including ADA upgrades for pedestrian push buttons and
assistance with Pedestrian Hybrid Beacons. Traffic Signal/Streetlight technicians have also assisted with several
development-lead traffic signal and beacon installations. The program has also been responding to what seems
to be an increase in knock down incidents where vehicles have hit above ground traffic signal equipment. Staff
plans to incorporate a standard plan for solar path lighting as part of the 2023 Engineering Standards update
and is continuing to explore solar options for streetlights. The program budget is in position to fund minimal
essential maintenance responsibilities through end of the fiscal year; however, an ongoing uptick in the
frequency of equipment knock-downs and failures has been quickly depleting available budget needed to
maintain adequate inventory of spare signal equipment. Additional budget will be requested as part of next
Financial Plan to provide adequate resources to address costs to repair equipment damaged by vehicle strikes
and to purchase sufficient spare equipment to maintain existing aging signal systems adequately. In some cases,
repair costs are reimbursed through ”damage to city property” fees; however, staff estimate that about 50%
of repair costs are unrecovered.
Fleet Maintenance
The program is categorized is yellow due to the current financial position of the fuel account. The Fleet
program is responsible for purchasing, outfitting, maintaining, and repairing the 340 City owned fleet assets.
Other responsibilities include emissions reporting, maintenance of the Corp Yard fuel pumps and car wash,
hazardous waste handling and disposal, and parts inventory. Fleet Maintenance had two vacant positions this
fiscal year, which has resulted outside vendors and overtime work to assist the program keep up with service
needs. Fleet Maintenance performs on average 45-60 preventative work orders each month, along with
repairing assets that are a result of unscheduled breakdowns. Vehicle procurement has been delayed due to
supply chain issues and the program is working diligently to procure the necessary vehicles for city programs
and services. Overall, the Fleet budget is on track, however, the fuel budget line item will likely see a shortage
with current trends and price points. This will be actively monitored over the year, and if needed, funding
approved from the FY 2021-22 carry over process may need to be utilized.
Budget Report Pg. 53 Page 425 of 489
Public Works
CIP Engineering
The program is categorized is yellow due to the expanded workload associated with the passage of Measure
G20. While funding was allocated to mitigate the impacts of an expanded CIP, the program is still in the
process of transitioning to a permanent staffing structure more in line with the increased workload while
balancing competing priorities. The CIP Engineering Program continues to work on and deliver Capital
Improvement Projects funded for design and construction. During the first quarter of FY 2022-23, several
construction projects have been completed including Area 6 and 7 Curb Ramps, 2022 Silt Removal, and the
2583 Greta Storm Drain Repair project. Additionally, many projects are currently in construction including the
2022 Roadway Sealing, Verde/Luneta/Ramona/Broad Sewer Replacement, and the Santa Rosa at Monterey
Intersection Improvements. Inspection staff continue to review and monitor private and public projects in
construction including large developments such as San Luis Ranch and Avila Ranch. Additionally, the program
has seen an increase in the overall CIP budget due to approval of Measure G20. This has greatly increased
workload of existing staff and warranted the need for additional resources to fill staffing deficiencies. The
program has one vacant full time engineer position, as well as one engineer working out of grade as a
supervisor. To mitigate staffing shortages, several projects are being managed by outside consult ant services
to continue progress during design. Following a program assessment, 53 recommendations for process
improvement and re-organization of the program structure were proposed and process improvement efforts
continue, in addition to the recruitment of a Capital Improvement Plan Administrative Manager.
Transportation Planning & Engineering
The Transportation Planning & Engineering Program has continued progress with enhancing crosstown traffic
circulation, including managing several large projects in construction, progressing with design of several
upcoming capital projects, continued support for a continuous stream of private development-related projects,
and ongoing implementation of the City’s Active Transportation Plan. Program highlights during the first half of
the 2022-23 fiscal year include new protected bike lanes on Marsh and Higuera Street, neighborhood
greenways on Cerro Romauldo and in the Laguna Lake Neighborhood, more than 40 new ADA curb ramps and
pedestrian crossing enhancements as part of the 2022 Roadway Sealing Project. Construction of the
Orcutt/Tank Farm Roundabout was also completed in early 2022-23 and staff has made significant progress
with final design of several other projects expected to start construction in 2023, including: the North Chorro
Neighborhood Greenway, Pedestrian Crossing Improvements (upgrades at 7 uncontrolled pedestrian
crossings), Higuera Two-Way Left-Turn Lane Widening (Bridge to Elks), 2023 Paving Project (includes complete
street improvements on Johnson, Santa Barbara, Monterey Street, and other locations), South/King Pedestrian
Hybrid Beacon, and multiple traffic safety and neighborhood traffic management projects. Staff has also begun
preliminary designs for complete street projects on the Higuera and Foothill corridors, including award of
approximately $7M in grant funds for Higuera Street, with potential implementation of these projects in 2024.
Finally, staff has developed and adopted a permanent parklet program, with transition to permanent program
policies and design requirements in progress.
While the program has made significant progress on many fronts and is fully staffed, the team is beginning to
face challenges keeping up with project schedules and requests from community members due to
unprecedented workload levels with several large capital projects in construction and design, a persistent
stream of development-related responsibilities (from entitlement review, to infrastructure
financing/development agreements, to improvement plan review, to in-field construction and traffic control
support). The Program workload is likely to continue at this level with increases in funding from the passage of
Measure G-20 and successful grant applications. As part of 2023-25 Financial Plan development, staff will need
to clearly identify priorities and realistic expectations for progress on these numerous tasks in the coming work
programs.
Budget Report Pg. 54 Page 426 of 489
Public Works
Work Program Evaluation
Transit Operations and Maintenance
The Transit Program continues to operate as expected and ridership levels appear to be returning to
pre-pandemic levels. Staff have recently negotiated with First Transit to extend the contract for one
year. This will allow sufficient time and continuity for the new Transit Manager to prepare the request
for proposals for the transit program. It is anticipated that costs may increase at a minimum of three
(3) percent. Similarly, staff completed negotiations with Cal Poly for an amendment for the transit
subsidy agreement. In addition, staff is working on the transition of the City’s diesel transit fleet to
electric transit buses, with up to six (6) buses on order. Given the high cost of electric buses, the
program will look to recently awarded grants funds to offset costs. Staff is working to deliver capital
improvement projects which were deferred during the pandemic. Following the completion of the
Transit Innovations Study, recommendations will be incorporated in the joint short range transit plan
and will consider the goals of the City’s Climate Action Plan. Bus driver shortages throughout the
industry continue to cause disruptions for the foreseeable future. The program received notice in the
Fall of 2022 that the Federal Transit Administration will be conduction a tri-annual Audit, which is
anticipated to occur during January and February. This will require a large amount of staff time for audit
coordination and assistance.
Work Program Evaluation
Parking
Throughout the beginning of the fiscal year, Parking Services has been able to carry out many of its
operations and programs that were limited over the past few years due to the COVID-19 Pandemic.
Parking has been successful in assisting with economic recovery efforts and in managing parking services
for residents, business owners, and visitors. The program has restarted the replacement of single spot
meters with multi-space pay-stations, as this effort was paused during the COVID-19 pandemic.
Substantial progress was made over the past few months related to the implementation of virtual
permits for residential parking areas as well as the addition of mobile payment methods (mobile
applications) where pay stations are located.
Parking continues to improve the customers’ experience by modernizing a 50-year-old operational
system and equipment, to better suit the needs of the community. The use of existing equipment and
staffing resources have been designed to meet the current needs of the community, while wo rk is
underway to implement gateless and limited contact parking operations in the structures and at
metered spaces. Planned improvements for FY 2022-23 include the roll out of gateless parking operation
in the 842 Palm Street parking structure, the groundbreaking on the Cultural Arts District Parking
Structure, continued expansion of multi-space pay stations and credit card capable meters, expansion
of paid parking in the Upper Monterey and Railroad Square areas, and the update to the Access and
Parking Management Plan (APMP).
In effort to secure funding for the Cultural Arts District Parking Structure, the Parking Fund is leveraging
all resources to secure a multi-million-dollar loan needed to fund construction. The program is actively
working with iBank and private entities to secure funding. The Fund will also implement approved rate
increases to ensure obligations are met beginning in Summer 2023.
Budget Report Pg. 55 Page 427 of 489
Utilities Department
Utilities Department
Performance Measures
Objective33 Measure 2021-22 Actual 2022-23
Target
2022-23 Mid
Year
Manage Assets Responsibly &
Transparently
Strategic Goal: Public Stewardship
Grant and partnership
dollars to be obtained to
offset rates
$2,303,891 $1,395,000 $501,526
Minimize number of
Customers Shut-Off for
Nonpayment34
6935 <450 173
Average Infrastructure Asset
Age (years)36 20.87 19.92 20.95
Connecting the Community to High
Quality & Reliable Service
Strategic Goal: Public Service
# Unplanned Service
Interruptions37 84 0 35
# of Sewer Lateral
Replacements including
Offsets
135 100 44
Recycled Water Delivered
(AF) 277 325 146.81
Foster Leadership, productivity, and
opportunity for personal and
professional growth.
Strategic Goal: Workforce
% of New Hire Safety
Trainings Conducted
100% 100% 100%
Provide Coworkers and the
Community with Information &
Opportunities to Participate in
Decisions that Impact them
Strategic Goal: Communication
Public Outreach : # of
Communications with the
Community38
287 200 93
Work Program Evaluations
Water Administration/Engineering
Water Administration/Engineering includes administrative, planning, and engineering staff that work
with operations staff to manage the City's drinking water program. The division is responsible for
planning efforts to ensure distribution systems and water supplies can meet the needs of the present
and future community. Major work efforts include implementation of the Groundwater Sustainability
Plan, source water planning and acquisition, and workforce planning and development. Other work
includes the transition from surface water permit to surface water license at Whale Rock and Salinas
reservoirs, and the development and execution of large CIP projects at the City’s Water Treatment Plant
and within the Water Distribution system, which are outlined in additional detail below.
Water Source of Supply
33 All performance data was pulled the week of 12/5/2022. This reflects about 43% of the fiscal year. As a result,
some data is slightly skewed.
34 2021-22 is artificially low due to the Covid-19 shut-off moratorium. In 2018-2020 (a typical year), there were 533
shut-offs for non-payment.
35 2021-22 shut-offs are low because of a moratorium on utility shut-offs through December 31, 2022.
36 Average asset age from City fixed assets data. This should decrease each year as assets are replaced.
37 Includes water main and service line outages; and sanitary sewer overflows.
38 Includes Facebook posts, blog posts, email bulletins, groundbreaking even t, quarterly project reports, the
Resource, website news articles, and bill inserts.
Budget Report Pg. 56 Page 428 of 489
Utilities Department
The Source of Supply budget within the Water Division funds programs related to the City’s surface water
sources, groundwater, and recycled water. This budget is administered by staff at the Water Treatment
Plant, Whale Rock Reservoir, Water Quality Lab, Water Resources, and Water Admin/Engineering
sections. Approximately 97 percent of the Source of Supply budget is utilized to fund the delivery of raw
water to the City’s Water Treatment Plant and to fund associated capital repairs and projects at the
City’s three surface water reservoirs. Major source water CIP work efforts currently include a project to
repair and replace drain lines under the Whale Rock Reservoir spillway, projects related to groundwater
pumping expansion, and a project to decrease electrical use for pumping of recycled water.
Approximately 45 percent of the Source of Supply budget funds debt service for the Nacimiento Water
Project, which has been critical in allowing the City to manage the current drought without requiring
mandatory water conservation measures. Despite low precipitation to date, the City’s water supplies
are currently sufficient to provide more than five years of water to the community, which allows the City
to remain in the “Monitor” stage of its Water Shortage Contingency Plan.
Reservoir Operations
This three-member section is responsible for maintenance and operation of Whale Rock Reservoir, 18
miles of raw water pipeline, and two pump stations that deliver untreated water to the Water
Treatment Plant. CIP projects are planned to maintain, replace, or upgrade infrastructure to meet the
goals of source water quality and consistent water delivery. At the request of the Division of Safety of
Dams (DSOD); Plans and Specifications for Spillway Underdrain Repairs have been produced and
submitted for DSOD approval. Additionally, the Whale Rock Reservoir Emergency Action Plan received
final regulatory approval from DSOD. Ongoing CIP aimed at maintaining infrastructure safety and
reliability includes a project to replace roofing at the facility, the replacement of approximately 2,000
feet of fence-line around the reservoir, development of plans for repaving the road to the dam face and
plans for draining and cleaning the spillway stilling basin, located at the bottom of the spillway, in
preparation for a required inspection.
Water Treatment
Water Treatment is a 11-member team responsible for the operation and maintenance of the City’s
drinking water plant. In the first half the current fiscal year, the water treatment plant has provided the
City’s users and Cal Poly with over 2,504 acre-feet of safe, reliable, potable drinking water. The water
treatment plant is now operating with state-of-the-art ozone disinfection equipment that was installed
last year as part of the Water Energy Efficiency Project. To understand future equipment needs, the
Utilities Department will soon release an RFP for a Water Treatment Plant infrastructure replacement
strategy. The infrastructure replacement strategy will help the section understand equipment
replacement needs, how changing regulations may require upgrades to the plant, and how water may
be more effectively treated to meet regulatory standards while minimizing costs. Global supply chain
issues and shortages of raw materials have been drastically impacting prices of chemicals used in the
water treatment process for the recent years. These cost increase, alongside increases in electricity
costs, have resulted in increased budgetary needs at the Water Treatment Plant that were addressed at
budget supplement. While short-term budget needs are addressed, price volatility in goods like
chemicals and electricity has created uncertainty in long range planning efforts.
Water Distribution
Water Distribution is a 12-person team responsible for the operation, maintenance, and expansion of
the City’s Water Distribution system. This system of pipes, tanks, pumps, valves, meters, and hydrants
transport water from the Water Treatment Plant throughout the City for fire protection and community
use. In the first half of the fiscal year, the section took its largest treated water storage tank, Reservoir
2, offline for a week as part of research and planning for replacement of the tank’s cover, which is
scheduled to occur in early 2024. While offline, the interior of the tank was inspected, and the
community continued to receive water from other water tanks without interruption. Additionally, staff
completed the replacement of approximately 600 feet of water main through CIP and another 1,700 feet
of water main were installed to improve water quality in the southeastern part of the City. Staff also
Budget Report Pg. 57 Page 429 of 489
Utilities Department
worked with a consultant to update the hydraulic water model by performing fire flow tests at over 30
locations throughout the City. The crew repaired or replaced 22 service lines, repaired 4 water main
leaks, performed 3,432 work orders related to establishing water service for new customers, flushed,
maintained, or replaced 430 fire hydrants, exercised 933 isolation valves, replaced 141 aging water
meters, and installed 203 new meters to support development.
Water Resources
Water Resources is a three-person team responsible for the development of local groundwater
resources, expansion of the City’s use of Recycled Water, and implementation of the City’s Water
Conservation programs. The team is also responsible for public outreach and communications regarding
the City’s drinking water program, which includes radio advertising, social media outreach, and special
event campaigns. The team recently completed a project to delineate and understand the
concentrations and extent of PCE groundwater contamination in the basin. This study utilized
approximately $2M in grant funding, with only ten percent required match from the City. Additionally,
staff will soon launch water rebate programs designed to reduce potable water use in the City while
utilizing $30,000 that was approved for rebate programs as part of the 2022-23 budget. Recycled water
will be a priority in the upcoming year as the Department moves toward full utilization of the recycled
water produced by the upgraded WRRF. This expansion of recycled water use will require additional
resources, which will be requested as part of the 2023-25 Financial Plan.
Wastewater Administration/Engineering
The Wastewater Administration/Engineering program leads, evaluates, and provides guidance and
direction for effective water resource management for the various wastewater programs. It provides
strategic and long-term planning for environmental compliance, stormwater, water quality analysis and
reporting, wastewater treatment and conveyance and recycled water production. Major work efforts of
this section are currently centered around the upgrade and regulatory permitting of the Water Resource
Recovery Facility (WRRF) SLO Water Plus project, public outreach and education, the sewer lateral rebate
program, departmental asset management standardization, consolidating roles and responsibilities of
the Citywide Stormwater Program, and completing water quality laboratory certification for
environmental analysis and documentation.
Wastewater Collection
This nine-member program of the Utilities Department is responsible for the operation and on-going
maintenance of the City’s wastewater collection system, with two staff members dedicated to the
maintenance of the City’s storm drain systems. The lateral rebate program has provided financial
assistance to homeowners who elect to replace their sewer lateral, providing rebates between $2,000
and $3,000. From 7/1/2022-12/1/2022, staff has replaced 39 sewer laterals, and given 34 lateral rebates.
The biggest accomplishment during this fiscal year was the start of the Calle Joaquin lift station project.
Staff are also gearing up for a two-year flow study, designed to update capacity-constrained portions of
the system and to provide insight into capital improvement project prioritization for the next ten years.
These programs contribute to reduced inflow and infiltration into the wastewater collection system,
meet regulatory requirements, protect human health, and preserve capacity.
Environmental Programs
Environmental Programs (EP) oversees Pretreatment Industrial Compliance for about 320 industrial
users within the City, including six Significant Industrial Users (SIUs). The Program is also responsible for
much of the City’s Stormwater Program and took over coordination duties from Administration in the
Fall of 2020. This three-member program includes one Environmental Programs Manager and two
Environmental Compliance Inspectors. EP staff transitioned its paper filing and reporting system to an
electronic platform called Linko CTS this year, which tracks inspections performed for over 300 industries
within San Luis Obispo. Utilizing this software protects the City from failing to meeting Pretreatment
program data tracking requirements; enables staff to properly track, monitor and report to the Water
Board; reduces labor costs by managing data efficiently; enables inspectors to conduct inspections using
Budget Report Pg. 58 Page 430 of 489
Utilities Department
mobile devices and submit results wirelessly; and helps protect the City from fines and additional
overhead expenses.
While restaurants have always been inspected by Environmental Programs staff, this year staff enhanced
the monitoring program by purchasing equipment to measure the amount of solids in grease traps and
interceptors. This helps better track and enforce upon restaurants that allow Fats, Oils, and Grease (FOG)
accumulation, which ultimately leads to blocking of private laterals and city sewer mains, increasing the
risk of Sanitary Sewer Overflows (SSOs). This year, the City’s pretreatment program was audited as part
of WWC’s Sanitary Sewer Management Plan, with great results. Auditors noted that both WWC and EP
run one of the most comprehensive, compliant programs in the State.
Water Resource Recovery Facility
This 13-member section of the Utilities Department is responsible for the operations and maintenance
of the City’s Water Resource Recovery Facility (WRRF), which treats all wastewater from the City, Airport,
and University, and includes recycled water production. The WRRF accepted a research award for
collaborative efforts with the State University of New York and California Polytechnic University, to
support development of a nutrient recovery system.
The WRRF upgrade project, SLO Water Plus, the largest CIP project in the City’s history, has seen
significant progress in most aspects of construction with two processes completed and placed into
service (stormwater capture basin and emergency generator). The project is nearing completion of the
first major milestone, Liquids Phase One, which includes water being treated through the new treatment
train and being discharged to SLO Creek or the Recycled Water System. During construction, operations
and maintenance staff have worked around construction and with the existing treatment train to convert
nearly half a billion gallons of wastewater to safe, clean water. The SLO Water Plus project will be
substantially completed by the end of calendar year 2023.
Utilities Revenue
Utilities Revenue is staffed with two full-time positions and provides support to 16,480 service
connections. This includes billing, payment collection, past due processing, and customer service. The
California Public Utilities Commission issued a moratorium suspending the disconnection for non-
payment and fees for late payment, which expired December 31, 2021. Since the expiration of this
moratorium, the Utilities Revenue program has experienced an increased workload associated with an
oversized delinquent account list. This has resulted in an increased number of shutoffs compared to
fiscal years during the COVID-19 pandemic.
Water Quality Lab
The five-member Water Quality Laboratory (WQL) is an Environmental Laboratory Accreditation
Program (ELAP) State Certified Laboratory which performs sampling and/or analyses in support of City
services including wastewater, recycled water, groundwater, drinking water, San Luis Obispo Creek
watershed, protecting public health and biosolids. The WQL operates under regulations ensuring
compliance with Federal, State, local regulations, and ELAP. For the past six months, staff provided
continued support of the WRRF Upgrade and corresponding NPDES permit negotiations. Staff also
completed full adoption of new Environmental Laboratory Accreditation Program (ELAP) Standards.
Water Quality Lab staff also continue as ongoing partnership with the County and other health
professionals in wastewater-based epidemiology to track and support general trends relating to the
COVID-19 pandemic.
Solid Waste & Recycling
The Solid Waste and Recycling (SW&R) Program was created in July 2019 to ensure compliance with
solid waste legislation such as Senate Bill 1383 and Assembly Bill 1826, manage the City’s SW&R
collection franchise agreements, conduct public outreach, and work with external partners such as San
Luis Garbage and the Integrated Waste Management Authority (IWMA). In November 2022, a SW&R
Program Manager was hired to oversee the program and manage staff, budget, hauler rate increases,
Budget Report Pg. 59 Page 431 of 489
Utilities Department
and implementation of programs to comply with legislation. This position reports to the department’s
Deputy Director of Wastewater. The program previously did not have a manager and tasks were being
completed by two SW&R Coordinators (one permanent full-time and one contract part-time) with
additional assistance from administrative staff. The permanent coordinator position is currently vacant
and the job description is being adjusted to better reflect division of duties with the staffing changes.
Recruitment is expected to begin in early 2023. In the last six months, the program has developed and
fully implemented a Mandatory Commercial Organics Recycling plan to demonstrate full compliance
with AB 1826 in partnership with IWMA, rolled out organics recycling at over 12 City facilities, completed
a draft Lead by Example Zero Waste Plan, actively supported IWMA in the development of SB1383
compliance programs, and continued to serve as the liaison to the community and the City Council for
questions regarding SW&R. Additionally, staff facilitated the collection of 381 illegally dumped bulky
items since the beginning of the fiscal year.
Stormwater
The Stormwater program is an interdepartmental approach to meeting the stormwater requirements
outlined by the State Water Resources Control Board (SWRCB). Staff from Utilities, Public Works,
Community Development, and the Sustainability and Natural Resources Official in Administration
departments all contribute to the underlying goal of protecting water quality and meeting regulatory
standards. Stormwater uses interventions like Low Impact Development infrastructure (LID),
groundwater infiltration and recharge, community education, regulatory compliance, construction site
management, and clean up and abatement of illicit discharges to protect water quality. Additionally,
these programs are responsible for annual reporting on water quality. Two noteworthy projects include
the Stormwater Outfall Project the Pathogen TMDL project. Environmental Programs (EP) performs
annual monitoring for illicit discharges for stormwater outfalls throughout the City. None of these
outfalls are marked, which makes it difficult for staff to find them. This year, EP, WWC, and Lab staff
marked over 100 outfalls within the City for the Stormwater Outfall Project. The Pathogen TMDL Project
is a project that monitors levels of human-sourced fecal indicators in SLO Creek, which has been ongoing
for the last 17 years. After three years of enhanced monitoring, we have found that the bulk of bacteria
in SLO Creek are not from human sources.
Safety
The Safety Program is currently comprised of a Safety Manager, who reports to the Risk Manager in the
Human Resources Department. The Safety Manager performs a variety of technical and professional
duties in the implementation and coordination of the occupational safety programs and safety-related
training for the Utilities Department.
Since August the Safety Manager has visited each Utilities site multiple times, performed over a dozen
risk assessments via job shadowing and discussed any findings with relevant managers and supervisors.
Currently, the Confined Space Program, the Respiratory Protection, the PPE: Foot Protection Policy and
the process for identifying and sending employees for medical evaluations are under review and moving
toward completion by the end of the year. Initial introductions to each section of Utilities have been
concluded and an overall risk assessment is being produced. Safety trainings are being scheduled and
new and refreshed training materials are being sent out. As well, discussions around “safety
orientations” specifically for interns have begun. The Safety Manager has a standing meeting with the
Safety Manager for PCL construction (WRRF Project) to discuss any issues in that construction area. A
“crew meetings” calendar is being developed which will set the Safety Manager’s participation for crew
check-ins on a regular basis. In 2023, the Safety Manager will focus on the Utilities Department’s Energy
Control Plan/Lock-out/Tag-Out. Finally, initial discussions regarding the use of CityWorks as a viable tool
for tracking Citywide safety incidents and assets have begun.
Budget Report Pg. 60 Page 432 of 489
Section E: Capital Improvement Plan Updates
ID
#Fund Project Current Status
Total Budget
(through FY
2022-23)
Approximate
Project Budget
Expended or
Committed
(as of
12/20/22)
Estimated
Construction
Completion Date
Additional Comments
1 General 2583 Greta Storm Drain Repair Complete $ 128,428 $ 128,428 Complete
2 General Area 6 and 7 Curb Ramps Complete $ 1,000,000 $ 880,783 Complete
3 General Silt Removal 2022 Complete $ 405,829 $ 291,515 Complete
4 Transit 40 Prado Bus Shelter Relocation Complete $ 105,000 $ 75,061 Complete
5 General Fire Station 2 Bathroom
Remodel Complete $ 83,500 $ 82,419 Complete
6 General Tank Farm Road and Orcutt
Roundabout Complete $ 5,502,486 $ 5,289,631 Complete
7 General SLO Creek at Pismo/Johnson
Emergency Repair Complete $ 577,272 $ 437,073 Complete
8 General
Fire Station 1 Administration
and Fleet Maintenance Roofing
Replacement
Complete $ 671,919 $ 549,276 Complete
9 Water Groundwater Contamination
Characterization Project
Construction
Ongoing $ 5,320,593 $ 2,083,974 Q3 FY 22-23 Includes SWRCB Grant Funds.
10 Sewer Calle Joaquin Lift Station
Replacement
Construction
Ongoing $ 9,225,565 $ 6,552,344 Q1 FY 23-24
11 Sewer Wastewater Resource Recovery
Facility Upgrade
Construction
Ongoing $ 143,376,754 $ 121,238,557 Q2 FY 23-24
12 Sewer Verde/Luneta/Ramona/Broad
Sewer Replacement
Construction
Ongoing $ 2,392,000 $ 2,026,702 Q3 FY 22-23
13 General 2022 Roadway Sealing Construction
Ongoing $ 5,550,000 $ 5,087,519 Q3 FY 22-23
14 General Santa Rosa at Montery
Intersection Improvements
Construction
Ongoing $ 1,067,084 $ 920,102 Q3 FY 22-23 Project in suspension until January
2023, due to material delays.
15 General City Hall Meeting Room Tenant
Improvements
Construction
Ongoing $ 420,000 $ 350,967 Q3 FY 22-23
16 General Walnut and Morro Strom Drain
Repair
Construcion
Ongoing $ 199,000 $ 163,214 Q3 FY 22-23
17 General Parks and Recreation Office
Rehabilitation
Construction
Ongoing $ 605,000 $ 605,000 Q4 FY 22-23
Construction is substantially
completed, with staff occupying the
offices. Project will be complete
once delayed furniture and other
materials are recieved.
18 Parking
Cultural Arts District Parking
Structure Phase 1A - Dry Utility
Undergrounding and Phase 1B -
Site Preparation
Construction /
Advertising
Phase
$ 9,778,889 $ 2,261,026 Q3 FY 22-23
Budget reflects expenditures to date
on entire project. Only Phase 1A
(Utility Relocation) is in the
Construction Phase. Phase 1B (Site
Demolition) is in the Advertising
Phase
19 General Railroad Safety Trail Fencing Award Phase $ 350,000 $ 226,780 Q3 FY 22-23
20 Water
Water Treatment Plant
Generator Improvement Project
at Facility 98
Award Phase $ 6,489,425 $ 1,472,887 Q4 FY 23-24
21 Parking 842 Palm Parking Structure
Gateless Entry
Advertising
Phase $ 175,000 $ 37,894 Q3 FY 22-23
22 Transit Transit Facility Electric Vehicle
Charging Infrastructure
Advertising
Phase $ 1,059,183 $ 243,606 Q2 FY 24-25
23 General North Chorro Neighborhood
Greenway
Advertising
Phase $ 5,308,455 $ 1,176,773 Q4 FY 22-23 This project was previously known as
the 'Anholm Greenway'.
24 General
Tank Farm and Orcutt
Roundabout Off-site Mitigation
Planting
Advertising
Phase $ 65,000 $ - Q3 FY 22-23 Project scheduled for construction
March 2023 with 10 working days.
25 General 2022 Pedestrian Crossing
Improvements
Advertising
Phase 841,644 $ 62,735 Q2 FY 23-24
Completed & Ongoing Construction Capital Projects (July 1, 2022 - December 31, 2022)
Budget Report Pg. 61 Page 433 of 489
ID
#Fund Project Current Status
Total Budget
(through FY
2022-23)
Approximate
Project Budget
Expended
(as of
12/20/22)
Estimated
Construction
Start Date
Additional Comments
1 General Cheng Park Revitalization Design Phase $ 500,000 $ 56,300 Q4 FY 22-23
2 General North Broad Street
Neighborhood Park Design Phase $ 958,000 $ 179,260 Q4 FY 22-23
3 General Mission Plaza Restrooms and
Kiosk Cafe Design Phase $ 1,484,825 $ 460,724 Q2 FY 23-24
4 Parking Cultural Arts District Parking
Structure Phase 2 Design Phase $ 9,778,889 $ 2,261,026 Q2 FY 23-24
Budget reflects expenditures to date
on project phases. Phase 2 of the
project is currently in the Design
Phase.
5 General
Water Mid-Higuera Bypass Design Phase $ 910,200 $ 796,846 Q3 FY 23-24 The majority of the project is funded
with County Zone 9 funding.
6 General Prado Road Bridge and Road
Widening Design Phase $ 7,281,563 $ 2,177,151 Q1 FY 24-25 Completion of CEQA document.
Pursuing permit packages, 60% plans
7 General California and Taft Roundabout Design Phase $ 450,085 $ 275,672 Q2 FY 24-25
Right of way acquisition has delayed
this project. Due to delays, funding
for this project was reduced to pay
for the 2022 Roadway Sealing project
which came in signficantly over
budget. This project is planned to be
re-funded in the 2023-25 Financial
Plan.
8 General Prado Road Interchange
Project
Approval/Env.
Document
Phase (PAED)
$ 4,225,520 $ 1,328,773 Q2 FY 25-26
Alternative analysis and
environmental document. Pursuing
advertisement of CEQA document
and final project report
9 General Public Safety Center Planning and
Entitlements $ 190,685 $ 187,945 Q2 FY 25-26
Status of Major and Legacy Projects in Design
Budget Report Pg. 62 Page 434 of 489
On track
MCG Task Completion Date
1 ERR a. Establish a process for the City to recognize and promote Minority‐owned businesses. FY23 Q2
2 ERR
b. Implement protocols within the City’s Office of Economic Development to reach out to existing
and new Minority‐owned/operated businesses to learn of their experiences operating in SLO, and
to identify ways the City can be of support.
FY23 Q2
3 ERR c. Evaluate and potentially establish a City Leadership/Chamber of Commerce / Minority Business
Owners’ roundtable.FY23 Q4
4 ERR
d. Research, explore and potentially utilize innovative practices such as micro‐loans, targeted‐
sector recruiting and promotion, City facilitated lending, grants, private support and
crowdfunding to support businesses owned by or serving underserved/underrepresented
communities. The City will also leverage its partner network, including the Chamber, Downtown
SLO, REACH and others to support the DEI initiatives as they relate to economic development
including creation, retention and attraction efforts. EXPENSE IS LISTED IN DEI
FY23 Q4
5 ERR e. Update and maintain a listing of resources for BIPOC, LGBTQ+ and other underserved
communities on the City's Doing Business section of the website.Ongoing
6 ERR
f. Hire a consultant, support legal review, and establish an internal working group and hire a
consultant to research methods to support local contractors, local vendors, and labor through
workforce agreements, local purchasing requirements, alternative project delivery methods and
other options to support local businesses and employees. The Community Services Group will be
leading this effort.
Ongoing
7 ERR g. Develop and implement a scorecard to track visitation to key areas of the City, employment,
DEI economic efforts and other relevant economic indicators.FY23 Q3
8 ERR h. Update the City's Economic Development Strategic plan FY23 Q4
9 ERR i. Review the Economic Development program structure based on the outcome of the EDSP
update. FY23 Q4
10 ERR j. Ensure adequate temporary and flex resources available to develop and execute required
initiatives. Ongoing
11
12 ERR
a‐1. Set aside funding for activations, promotions and programs like "Light Up Downtown", "Buy
Local Bonus", Shop local to aid in the recovery from the impacts of COVID‐19 through out the
City and including downtown.
Ongoing
13 ERR
a‐2. Elevate the promotion and branding of the Economic Development activities of the City
highlighting the efforts around Sustainability and DE&I through the website, videos and other
collateral. ($60k communications support for Administration)
Ongoing
14 ERR
a‐3. Continue to work with our 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.
Ongoing
15 ERR a‐4. Work with REACH and other partners to offset the loss of the Diablo Canyon Nuclear Power
plant through business attraction, H‐o‐ H job creation and other relevant efforts. Ongoing
16 ERR a‐5. Evaluate the continuation and/or modification of the Open SLO program Fitness in the Parks. Complete
17 ERR a‐6. Review transitioning the Business Ambassador program from a COVID response action to an
ongoing program with an available hotline as well as an online form option.Complete
MCG Key: ERR= Economic Recovery, Resiliency & Fiscal Sustainability; DEI= Diversity, Equity & Inclusion; HH=Housing and Homelessness;
CA= Climate Action, Open Space & Sustainable Transportation
Task delayed or potential setbacks with workable solutions
Problems emerged with no solution yet
F: Major City Goal (MCG) Update
The following table provides an update on all ongoing Major City Goal tasks and all tasks that were scheduled for completion in FY
2022‐23. The completion date is the originally scheduled completion date unless otherwise noted. The status of each task (far right
column) is based on the following scale:
1.2 Business Support
1.1 For all members of the Community
Budget Report Pg. 63 Page 435 of 489
MCG Task Completion Date
MCG Key: ERR= Economic Recovery, Resiliency & Fiscal Sustainability; DEI= Diversity, Equity & Inclusion; HH=Housing and Homelessness;
CA= Climate Action, Open Space & Sustainable Transportation
18 ERR a‐7. Continue to promote the City to tourists, visitors and locals through the efforts of the TBID
and the PCC. Ongoing
19 ERR a‐8. Provide childcare programming to the community to enable residents to work and fuel the
local economy.Ongoing
20 ERR b‐1. Continue to implement the TIPP‐FAST program to fast track tenant improvement permits
and support business recovery. Incorporate subsidies into program when funding is available.Complete
21 ERR
b‐3. Develop a streamlined and easy to understand process for businesses to allow activities
encouraged by Open SLO, and other programs implemented in response to Covid‐19, to continue
‐ especially in relation to outdoor dining.
Complete
22 ERR
b‐4. Improve efficiency and transparency in the permitting process through implementation of
paperless permitting, performance management reporting, and enhanced customer transparency
tools.
FY23 Q4
23 ERR
b‐5. Review and establish policies as required to support broadband to the home to take
advantage of the opportunities to work from home to support the Climate Action Plan and
Quality of life.
Ongoing
24 ERR b‐6. Staff Resources to improve permitting efficiency and support development services program
capacity Ongoing
25 ERR
c‐1. Ensure the business community is updated and aware of major City projects (CIP and others)
that will impact their operations. Coordinate with business adjusting working hours and
construction impacts to reduce impacts.
Ongoing
26 ERR c‐2. Set aside funding for the potential to expand the various Open Slo programs (Parklets, Street
closures) to other areas of the City to support business recovery. Complete
27
28 ERR a. Support the recovery of Arts and Cultural activities throughout the City. Ongoing
29 ERR b. Support the recovery of Arts , Culture and Community programs through a PCC program
similar to GIA. Complete
30 ERR c. Continue to support local community non‐profit organizations through the Cultural GIA
program facilitated by the PCC. Ongoing
31 ERR d. Roundabout Public Art Installations Ongoing
32
33 ERR a‐1. Continue to partner with Downtown SLO to ensure the recovery and growth, and vitality of
the Downtown. Ongoing
34 ERR
a‐2. Support Downtown SLO in expanding the Holiday "Light up Downtown" program and
incentivize private participation through a matching program.(For example $100K base with $ for
$ match on $50K)
Ongoing
35 ERR a‐3. Continue the work of the Vacancy and Vibrancy Task force in cooperation with Downtown
SLO with a focus on a activating and re‐leasing vacant store fronts. Ongoing
36 ERR a‐4. Review, evaluate and execute on the outcomes from the Downtown Future Forum ensuring
the required public participation and Council approval as needed. Complete
37 ERR a‐5. Continue to enhance and modify the Open SLO program "Downtown Dining" within Mission
Plaza as needed to contribute to downtown vitality. Ongoing
38 ERR a‐6. Support the restart of the various Downtown SLO activations like Farmers, Concerts in the
Plaza and the Holiday Parade. Complete
39 ERR a‐7. Continue to promote the Downtown to tourists, visitors and locals through the efforts of the
TBID and the PCC. Ongoing
40 ERR
b‐1. Part 1: Update the Zoning Regulations to allow for more flexible administration of allowed
uses, especially downtown, to support desired pop‐up, shared‐resource and new business model
approaches to facilitate business opportunities in the community.
Complete
41 ERR
b‐2. Part 2: Update the Zoning Regulations to allow for more flexible administration of allowed
uses, especially downtown, to support desired pop‐up, shared‐resource and new business model
approaches to facilitate business opportunities in the community.
Complete
42 ERR c‐1. Support Arts and Culture in the downtown while ensuring appropriate efforts are made to
support DEI through available programs.Ongoing
1.3 Arts and Culture Support
1.4 Downtown Vitality
Budget Report Pg. 64 Page 436 of 489
MCG Task Completion Date
MCG Key: ERR= Economic Recovery, Resiliency & Fiscal Sustainability; DEI= Diversity, Equity & Inclusion; HH=Housing and Homelessness;
CA= Climate Action, Open Space & Sustainable Transportation
43 ERR c‐2. Support the recovery of Arts and Cultural activities by working with new and existing
community partners.Ongoing
44 ERR c‐3. Activation of public spaces in downtown through events and programming such as pop up
activities and temporary public art that celebrates the proliferation of public art.Ongoing
45 ERR c‐4. Explore options of creative placemaking and temporary public art in the downtown i.e.
adjacent to Bubblegum Alley and Rose Alley.Ongoing
46 ERR c‐5. Support creation and partnership of a Downtown Mural Program with Downtown SLO and
SLOMA.Ongoing
47 ERR d‐1. Develop and present a long‐term plan for the initiatives started under the Open SLO like
parklets and street closures in the downtown. Complete
48 ERR d‐2. Replace the existing Mission Plaza Restrooms in compliance with Mission Plaza Concept Plan
and Council Direction.Ongoing
49 ERR d‐3. Construct the new Palm/Nipomo structure in coordination with SLO REP theatre.Ongoing
50 ERR d‐4. Continue with the City banner program.Ongoing
51 ERR d‐5. Establish and implement a plan to make the Zig Zag lights permanent in the current locations
as well as other locations in the downtown.Complete
52 ERR
d‐6. Ensure the downtown business community is updated and aware of major City projects (CIP
and others) that will impact their operations and set aside funding to minimize the impacts
where possible.
Ongoing
53 ERR d‐7. Investigate opportunities to develop a Downtown Wi‐Fi Mesh.Ongoing
54 ERR d‐8. Expansion to gateless parking structure to improve the customer access and experience
when visiting downtown.FY23 Q4
55 ERR d‐9. Assist with the continuation of Open SLO parklets and courtesy curbside pick up locations Complete
56 ERR d‐10. Expansion of enforcement to ensure on‐street, off‐street, and residential compliance and
safety and to improve overnight safety in the parking structures Ongoing
57 ERR d‐11. Expansion of maintenance to ensure parking structures and adjoining areas remain safe,
clean and orderly (see above for fiscal impact)Complete
58 ERR d‐12. Parking structure maintenance at 842 Palm, 871 Palm, and 919 Palm. Ongoing
59 ERR d‐13. City Hall lighting
FY 23‐24 (next
Financial Plan)
60 ERR e‐1. Continue to support the Downtown SLO programs like Clean & Safe, the Ambassadors and
homelessness support. Ongoing
61 ERR e‐2. Continue to enhance downtown cleanliness through daily sidewalk scrubbing, street
sweeping and trash clean up and the improvement of the existing creek walk.Ongoing
62 ERR e‐3. Continue to provide public safety presence in the downtown. Includes costs of Downtown
Bike Patrol, Sergeant, and Officers)Ongoing
63 ERR
e‐4. The Police department will develop an educational program, which will include in‐person
presentations for business owners (including visitor serving) to know how to deal with situations
requiring public safety support. Costs are associated with materials.
Ongoing
64 ERR
e‐5. Develop a CAT staffing plan with a second social worker, to ensure public safety and social
service resources in both the downtown and creek area. FUNDING LISTED IN HOMELESSNESS
MCG
Ongoing
65 ERR e‐6. Evaluate a plan to reestablish a downtown sub station for public safety. (Potential of adding
to Mission Plaza Project)n/a
66 ERR e‐7. Track hours worked (regular and overtime hours) by the downtown sergeant and downtown
officers and tracking crime statistics.Ongoing
67 ERR e‐8. Downtown safety enhancements ‐ bollards Complete
68 ERR e‐9. Mission Plaza Railing Replacement Complete
69
70 ERR
a. Practicing fiscal responsibility: The City will continue to focus fiscal sustainability through all
work efforts, programs, and the required budget appropriations. It will review its revenue
sources ongoingly and maximize collection and return on its investments.
Ongoing
1.5 Practicing fiscal responsibility
Budget Report Pg. 65 Page 437 of 489
MCG Task Completion Date
MCG Key: ERR= Economic Recovery, Resiliency & Fiscal Sustainability; DEI= Diversity, Equity & Inclusion; HH=Housing and Homelessness;
CA= Climate Action, Open Space & Sustainable Transportation
71 ERR
b. Staff Resources: Continued enhancements to the Oracle Cloud system through the MOTION
program to increase efficiencies and overall effectiveness of the system. Additionally help
maintain the City's accounting and financial information.
Ongoing
72 ERR c. Negotiate successor agreements with employee groups in alignment with Council adopted
Labor Relations Objectives.Ongoing
73 ERR d. Complete benchmark compensation survey for SLOCEA, Management, and Confidentials
groups.Complete
74 ERR e. Continue to monitor and reduce liability and workers’ compensation claims through actions
aimed at reducing liability and workers’ compensation costs. Ongoing
75 ERR f. Injury Reduction Programs, Compliance Software, Onboarding Software, and transitioning to
electronic files Ongoing
76
77 ERR a. Paying down unfunded pension liabilities (includes all funds): The City will work to pay down
the unfunded liabilities and allocate additional annual payment in pursuit of a 20‐year paydown. Ongoing
78
79 ERR
a. Investing in critical infrastructure: The City will invest in critical infrastructure based on the
approved 2021‐23 CIP or as otherwise directed by the City Council. Projects that 1) facilitate
economic recovery, 2) enhance safety, resilience, fire prevention, 3) address past commitments
(previously budget, approved planning documents), 4) are partnership projects with a significant
portion of the cost covered by private development, 5) address existing core infrastructure
maintenance needs and 6) provide positive impact towards climate change goals and/or Diversity
Equity and Inclusions needs will be prioritized for inclusion and Council’s consideration in the
2021‐23 CIP. Specific CIP projects/Investments are included in the relevant task and the overall
CIP plan.
Ongoing
80 ERR
b. Regional Transit Authority Analysis: The RTA is currently building a Regional Transit HUB 800
feet from the City’s SLO Transit Bus Yard. Much of the infrastructure that supports SLO Transit is
aged and nearing the end of its lifespan. All transit providers are required to shift the fleet of
transit vehicles to zero emission vehicles.
This funding would support the analysis and review of SLO Transit’s operations and infrastructure
to determine if there may be benefit to sharing infrastructure, equipment or centralizing services
to provide increased community services at the same or reduced purchasing requirements,
alternative project delivery methods and other options to support local businesses and
employees. The Community Services Group will be leading this effort.
Complete
81 ERR c. Administrative Costs to Support Investment in CIP (Office modifications, Interns) Ongoing
82
83 DEI a. Design DEI Administration, Function, and Operations of the Office Complete
84 DEI b. Develop DEI Base Operating Budget Complete
85 DEI c. Identify and secure office space (2000/mo @ 7 mos Y1, 12 mos Y2) Complete
86 DEI d. Develop positions; Hire Staff Complete
87 DEI e. Hire Diversity position ‐ 1.0 FTE Complete
88 DEI g. Hire CivicSparks Fellow ‐ Y2 ‐ .75 FTE Complete
89 DEI h. Hire Interns ‐ Cal Poly, Cuesta, community candidates ‐ .25 FTE ‐ 2 positions Y1 @ midyear / 2 ‐
Y2, full year FY23 Q2
90 DEI i. Consultant ‐ DEI SME ‐ 360 total hours FY23 Q4
91 DEI
j.Create and establish formal and informal activities, outreach, programs, policies, structures to
advance equity and inclusion, cultural and systemic anti‐racism, and cultural competence in the
organization and community, and support underrepresented communities
Ongoing
92 DEI k.Implementation of prioritized activities – internal and community‐based Ongoing
93 DEI l. Support DEI efforts throughout each department Ongoing
94 DEI m. Coordinate activities of the DEI Employee Committee Ongoing
95 DEI n. Community‐based outreach, education, programming Ongoing
1.6 Paying down unfunded pension liabilities
1.7 Investing in critical infrastructure
2.1 Establish Office of DEI
Budget Report Pg. 66 Page 438 of 489
MCG Task Completion Date
MCG Key: ERR= Economic Recovery, Resiliency & Fiscal Sustainability; DEI= Diversity, Equity & Inclusion; HH=Housing and Homelessness;
CA= Climate Action, Open Space & Sustainable Transportation
96 DEI o. DEI High Impact and GIA grant administration and management Ongoing
97 DEI p. Cal Poly & Cuesta collaborations Ongoing
98 DEI q. Support the HRC Ongoing
99
100 DEI a. Conduct needs, priority, and resource assessments. Create comprehensive DEI initiatives and
programming for the organization and community. FY23 Q4
101 DEI b. Utilize DEI Task Force Recommendations, Internal D&E Audit as foundation; Cal Poly
Experience report and other documents as reference and for benchmarking Complete
102 DEI c. Present comprehensive plan to City Council for Adoption FY23 Q4
103 DEI d. Create project designs and implementation plans. Identify applicable qualitative and
quantitative metrics to measure impact of DEI projects and overall DEI program FY23 Q4
104 DEI e. Begin implementation of prioritized programs and projects; scoped as resources allow. To be
determined through Strategic Planning process.Ongoing
105
106 DEI a.Improve DEI‐Focused Recruitment, Screening, Hiring Practices Ongoing
107 DEI
b. Improve DEI‐focused language in job descriptions, announcements and other recruitment
materials. Identify gaps and opportunities to increase inclusivity in materials. ‐ supported by
consultant, 2.1.4.g
Complete
108 DEI c. Provide DEI‐focused screening and interviewing training to personnel and panels ‐ supported
by consultant, 2.1.4.g Ongoing
109 DEI d. Implement applicable recommendations from Internal Audit, as well as other industry best
practices. Continue to ensure final selection guidelines are consistent with DEI best practices Ongoing
110 DEI e. Conduct Pay Equity Audit Complete
111 DEI f. Examine Policies and Programs to Support for Primary Caretakers Complete
112 DEI g. Review, evaluate and implement findings of SLO County Child Care Study (First 5’s analysis) of
childcare for working families, as applicable; 22‐23 Supplemental Plan as resources permit.Ongoing
113 DEI h. Continue communicating childcare options and resources for City employees; additional to
First 5 findings. Explore flex schedules, job share, remote options, etc.Ongoing
114 DEI i. Expanded Recruitment Services Expenses to Augment HR Ongoing
115 DEI j. Fire: Recruit Academy Support and Intern Program ‐ enhance DEI recruitment efforts Ongoing
116
117 DEI a. Develop and Adopt Diversity Statement for the Organization FY23 Q2
118 DEI b. Assist Departments in infusing DEI into their programs, policies, and practices in relevant and
practical ways Ongoing
119 DEI c. . Further develop purpose, role, activities and enhance impact of DEI Employee Committee –
(e.g. ERGs, cultural celebrations, activity budget, speakers, self‐study materials, public web pages)Ongoing
120 DEI d. Grant equal standing and priority to the tasks and responsibilities periodically assigned to DEI
committee members as is given to their other duties Ongoing
121 DEI e. DEI‐related Staff Development / Training Ongoing
122 DEI f. Implement a DEI module in new hire onboarding Ongoing
123 DEI g. Provide training and other learning opportunities for all levels. E.g. inclusive leadership,
cultural competency, assessments, speakers, self‐study, etc. Ongoing
124 DEI h. Continue Clarity Collective training as foundation training ‐ ASSIGNED / RESOURCED TO HR Ongoing
125 DEI i. Training for Council, Commission, Advisory Board – tailored for roles, Brown Act, etc.Ongoing
126 DEI j. Complete a planning study for gender‐inclusive restroom and sleeping facilities for Fire Stations
3 and 4. Proceed with design work pending results of study.FY23 Q4
127
128 DEI a. Implement After Action Report recommendations Complete
129 DEI b. Review and implement Governor’s recommendations regarding protests when issued Ongoing
2.2 Develop & Implement DEI Strategic Plan
2.5 Community‐based Policing and Restorative Practices
2.4 Inclusive & Equitable Workplace
2.3 Workforce Recruitment & Retention
Budget Report Pg. 67 Page 439 of 489
MCG Task Completion Date
MCG Key: ERR= Economic Recovery, Resiliency & Fiscal Sustainability; DEI= Diversity, Equity & Inclusion; HH=Housing and Homelessness;
CA= Climate Action, Open Space & Sustainable Transportation
130 DEI
c. Implement federal government changes in law enforcement. Implement RIPA Spillman
Module: the Racial and Identity Profiling Act (RIPA) was formed as part of AB953. California law
enforcement agencies will be required to collect data for stops made by law enforcement
personnel. Annual reporting to DOJ is a requirement.
Ongoing
131 DEI d. Review new Police Station building program and budget for opportunities to reduce costs to
preserve resources for community service investments Complete
132
133 DEI a. Solidify relationships and collaborations Ongoing
134 DEI b. CP Office of University Diversity and Inclusion (OUDI) and City DEI Office/City Manager
Leadership quarterly planning meetings Ongoing
135 DEI
c. Host City / Cal Poly Office of Student Diversity & Belonging quarterly roundtable (City & CP
leadership, DEI committee, HRC, Cal Poly students, DEI leaders, etc.) ‐ re community / student
experience, relationship‐building
Ongoing
136 DEI d. Utilize Faculty Fellow assigned to Office of DEI in partnership with CP OUDI to research best
practices, grants for internships, programs, outreach, innovative practices, etc.Ongoing
137 DEI e. Explore opportunities and build collaborations with Cuesta College Ongoing
138 DEI f. Provide City facilities as available to campus DEI programs delivered to and in the community Ongoing
139 DEI g.Utilize interns from Cal Poly and Cuesta within the Office of DEI Ongoing
140
141 DEI a.High Impact DEI Grants Ongoing
142 DEI b. GIA Grants Ongoing
143 DEI c. HRC Operating Budget for enhanced presence, advocacy, community building, etc. (such as
awareness campaigns, access/fairness efforts, citizen award, etc.). Activities TBD Ongoing
144 DEI e. Support feasibility study for Multicultural Center; provide City liaison/staff support FY23 Q4
145 DEI f. Contribute to planning / feasibility study FY23 Q4
146 DEI g. Update City's formal Public Engagement & Noticing (PEN) procedures as well as other public
outreach, input efforts to increase diverse participation. Develop tactics and cost to implement FY23 Q2
147 DEI h. City 101 / Community Academy to increase understanding / access / participation in City
government Ongoing
148 DEI
i. City 101 – first stage, short program, easy access/commitment. Overview of City, how to
access, ways to be involved. Extensive outreach to Underrepresented minorities, community‐
based sessions. Design, pilot Y1
Complete
149 DEI j. Community Academy – second stage, longer program. Partner with Chamber, others. Test
demand, develop. Pilot Y2 FY23 Q4
150 DEI k. Develop “Undocu‐Friendly” logo for City documents, as allowable by law (cost of internal
resources)FY23 Q4
151 DEI l. BIPOC youth artists' public art project. Feature work that provides a fuller representation of all
communities. Artists are stipended. Pilot in Y2 ‐ ASSIGNED & RESOURCED TO P&R Ongoing
152 DEI m. Park major maintenance and repairs specific to Cheng Park improvements and Mission Plaza
railing improvements. FY23 Q3
153 DEI n. Parks Major Maintenance ‐ ADA Transition Plan Implementation Ongoing
154
155 DEI a. Trainings, workshops, speakers, forums, townhalls, listening sessions, outreach, etc. for youth,
marginalized communities and community‐at‐large [in addition to CP's programming]Ongoing
156 DEI b. Utilize proven providers rather than City develop program. City serves as coordinator, sponsor,
convener, etc. Ongoing
157 DEI c. Determined by interest, guidance by BIPOC, other URMs, DEI committee, HRC + public input,
etc. Ongoing
158
2.8 Community Education & Programming
2.7 Access, Inclusion, Support for Underrepresented Communities
2.6 Cal Poly & Cuesta Partnerships
2.9 Support & Attract Minority‐Owned Businesses
Budget Report Pg. 68 Page 440 of 489
MCG Task Completion Date
MCG Key: ERR= Economic Recovery, Resiliency & Fiscal Sustainability; DEI= Diversity, Equity & Inclusion; HH=Housing and Homelessness;
CA= Climate Action, Open Space & Sustainable Transportation
159 DEI a.Establish a process for the City to recognize and promote Minority‐owned businesses FY23 Q2
160 DEI
b.Implement protocols within the City’s Office of Economic Development to reach out to all
existing and new Minority‐owned/operated businesses to learn of their experiences operating in
SLO, and to identify ways the City can be of support.
FY23 Q2
161 DEI c.Establish a City Leadership/Chamber of Commerce / Minority Business Owners’ roundtable. FY23 Q4
162 DEI
d. Research, explore and potentially utilize innovative practices such as micro‐loans, targeted‐
sector recruiting and promotion, City‐facilitated lending, grants, private support and
crowdfunding to support underserved/underrepresented communities. Leverage City's partner
network, including the Chamber, Downtown SLO, REACH and others to support the DEI initiatives
as they relate to economic development including creation, retention and attraction efforts.
FY23 Q4
163 DEI e. Update and maintain a listing of resources for BIPOC, LGBTQ+ and other underserved
communities on the City's Doing Business section of the website.Ongoing
164
165 HH a. Inclusionary Housing Ordinance (HE programs 2.13 & 4.6)FY23 Q2
166 HH b. Flexible Density Program (HE Program 2.15)FY23 Q3
167 HH c. Develop Objective Design Standards & Update Development Review Process (HE 6.22 & 6.23) Complete
168 HH d. Zoning Regulations Update ‐ Housing (HE 5.5, 8.18, 8.23, 2.17 and AB 2345) Complete
169 HH e. Subdivision Regulations Update (HE 6.20)FY23 Q4
170 HH f. Missing Middle Housing (HE 5.4)FY23 Q2
171 HH g. Additional Housing Element Program Implementation (HE 2.16, 2.18, 3.10, 4.7 & 4.8) FY23 Q2
172 HH h. Regional Coordination (HE Chapter 4)Ongoing
173 HH i. Housing Element Program Implementation (Chapter 3) Ongoing
174 HH
j. Construct Prado Road Creek Bridge Replacement & S. Higuera/Prado Road intersection
reconstruction, adding protected bicycle lanes, sidewalks and a bicycle protected intersection, as
recommended in the Active Transportation Plan.
FY 23‐24 (next
Financial Plan)
175 HH
k. Complete construction of the Prado Road Interchange project, providing more efficient
connectivity for motor vehicles and transit service (reducing VMT), and providing physically‐
separated facilities for bicycles and pedestrians, as recommended in the Active Transportation
Plan.
FY 24‐25 (next
Financial Plan)
176 HH l. Development related park improvements specific to Laguna Lake and Orcutt Area. FY23 Q4
177 HH m. CDD Fleet Replacement Ongoing
178
179 HH a. Development review project referrals Ongoing
180
181 HH a. Inventory Management; Monitoring; Escrow services; Homebuyer & rental services;
BEGIN/FTHB Ongoing
182
183 HH a. CDBG Program Administration Ongoing
184 HH b. GIA Progarm Administration Ongoing
185 HH c. Affordable Housing Fund Administration Ongoing
186 HH d. Grant research; applications; coordination Ongoing
187
188 HH a. Reports, Community meetings, presentations (does not include time associated with tasks
identified herein)Ongoing
189 HH b. HRC liasion Ongoing
190
191 HH a. Coordination of staff from various City departments (Public Works, Parks and Recreation,
Police, Fire, Administration) focused on addressing issues associated with homelessness.Ongoing
192 HH
b. Develop a Strategic Plan to guide a sustained effort of engagement by regional partners, non‐
profit partners, and community members to identify and implement coordinated solutions to
chronic homelessness.
FY23 Q3
3.2 Implement Inclusionary Housing Ordinance
3.1 Implement Housing Element
3.6 Homelessness Team Coordination
3.5 Advisory Body & Council meetings & support
3.4 Financial Management
3.3 Below Market Rate Portfolio Management
Budget Report Pg. 69 Page 441 of 489
MCG Task Completion Date
MCG Key: ERR= Economic Recovery, Resiliency & Fiscal Sustainability; DEI= Diversity, Equity & Inclusion; HH=Housing and Homelessness;
CA= Climate Action, Open Space & Sustainable Transportation
193 HH
c. Maintain and update informational resources, such as the City's Homelessness Solutions web
page, about City actions to help the unhoused population, and the scope of services provided to
address the challenges of homelessness by the County, State, City, and regional partners.
Ongoing
194 HH
d. Work to prevent homelessness through a Safe Housing Outreach and Education Program that
will provide, among other duties, information about rental assistance programs, eviction
protection programs, and new housing opportunities.
Ongoing
195 HH e. Pursue a coordinated lobbying strategy to motivate action at the State and regional level, and
research and secure additional sources of funding to address local challenges.Ongoing
196 HH f. Housing and Homelessness City Staff Ongoing
197
198 HH a. Environmental clean‐ups in creek and open space areas associated with abandoned personal
property and trash (Parks & Rec)Ongoing
199 HH b. Environmental clean‐ups in creek and open space areas associated with abandoned personal
property and trash (Parks & Rec)Ongoing
200 HH c. Environmental clean‐ups in City Parks and public spaces associated with abandoned personal
property and trash (Public Works)Ongoing
201 HH d. Environmental clean‐ups in City Parks and public spaces associated with abandoned personal
property and trash (Public Works)Ongoing
202
203 HH a. Active participation and respresentation of the City in the County's regional strategic planning
efforts to develop regional solutions to chronic homelessness. Ongoing
204 HH b. Attend HSOC & PACT meetings, support City seat on the Commission, and report status of
agenda items back to staff Ongoing
205 HH
c. Support the Housing Policy and Program section and the Office of Diversity, Equity and
Inclusion on homelessness related funding opportunities, such as CDBG, GIA, DEI, and other
sources.
Ongoing
206
207 HH a. Expand the current Community Action Team by adding an additional social worker position. Ongoing
208 HH
b. Continue to provide public safety services by utilizing the Community Action Team; includes
two officers and a social worker. (Costs include existing social worker position, but funding for
the position is provided by the County).
Ongoing
209 HH c. Continue to provide public safety services by utilizing the downtown bike team. Ongoing
210
211 HH a. Pair a crisis worker with an Emergency Medical Technician (EMT) to provide non‐emergency
response and care to unhoused community members. Complete
212 HH b. Implement the program with the goals of reducing emergency dispatch of paramedics and law
enforcement to community members who need non‐emergency support. Ongoing
213 HH c. Engage with the County of San Luis Obispo in the implementation of the pilot program so that
if it is successful it can be scaled up and replicated across the region.Ongoing
214
215 HH a. Support non‐profit partners in pursuing funding resources, such as CARES Act and Project
Homekey grants.Ongoing
216 HH b. Support a 25% expansion of the number of beds at the 40 Prado Homeless Services Center. Complete
217 HH c. Continue to expand Safe Parking opportunities and support coordinated regional efforts for
Safe Parking, transitional housing, and other shelter resources.Ongoing
218 HH d. Ongoing General Fund support to CAPSLO for 40 Prado (includes safe parking, warming center,
operational support)Ongoing
219 HH e. Bus Token in‐kind program to CAPSLO Ongoing
220 HH f. General Fund low income utility subsidies Ongoing
221 HH g. Federal CDBG Grant for social services (Provided to CAPSLO to help fund Homeless Services
Center operations)Ongoing
3.11 Non‐Profit Partner Support
3.10 Mobile Crisis Unit Pilot Program
3.9 Community Action Team Resources
3.8 Regional Engagement and Grant Management
3.7 Environmental Protection and Water Quality
Budget Report Pg. 70 Page 442 of 489
MCG Task Completion Date
MCG Key: ERR= Economic Recovery, Resiliency & Fiscal Sustainability; DEI= Diversity, Equity & Inclusion; HH=Housing and Homelessness;
CA= Climate Action, Open Space & Sustainable Transportation
222
223 CA
a. To ensure consistent maintenance and adequate oversight of City Open Space lands, add one
net new Ranger Maintenance Worker to maintain level of service standards following recent
Open Space acquisitions. The City's level of service standard for Open Space is 1 Ranger per
1,000 acres.
Complete
224 CA b. To address Ranger Services staffing, recruitment, and retention, convert 5 Ranger Specialist
positions (currently limited benefit temporary) to full‐time regular permanent positions. Complete
225 CA
c. Create a limited term Sustainability & Natural Resources Analyst position to support open
space conservation planning, implement Climate Action Plan actions that were established for
2021‐23 on time, and support the completion of the Resilient SLO climate adaptation work effort.
Ongoing
226 CA
d. Restore the Sustainability & Natural Resources Intern position to support open space
administration and planning efforts and climate action plan implementation efforts, including
completion of the Community Forest Master Plan.
Ongoing
227 CA e. Hire a CivicSpark Fellow for one year to initiate, complete, and begin implementing a municipal
solid waste reduction initiative.Ongoing
228 CA f. Continue grant writing consulting support to ensure focused and competitive proposals for
state, federal, and private grants. Ongoing
229 CA h. Orient the Green Team to support "Lead by Example" implementation, "Resilient SLO"
implementation, and all‐staff educational efforts.Ongoing
230 CA i. Continue SLO Climate Coalition support to provide a resource for community members to
participate in climate action initiatives and build overall community capacity. Ongoing
231 CA j. Convene an inter‐departmental staff team to assess and provide recommendations for the
Urban Forest Program's future role in advancing sustainability goals and objectives.Ongoing
232 CA k. Continue to monitor the status of the Integrated Waste Management Authority (IWMA)
Polystyrene Ordinance and respond as needed and appropriate.Ongoing
233
234 CA a. Complete the Biennial Climate Action Plan Update, as called for by CAP Administrative Action
3.Complete
235 CA
b. Implement the Lead by Example Municipal Operations Carbon Neutrality Plan, as called for by
CAP Lead by Example task 1.1. Specific projects include:
‐ i. Install electric vehicle chargers to support the transition to all‐electric fleet vehicles.
‐ ii. Initiate and complete Building and Facility Energy and Decarbonization Study in order to
identify and prioritize projects for City facilities.
‐ iii. Complete installation of lighting retrofits at City Hall and Fire Station 1 using available on‐bill
financing.
‐ iv. Complete installation of solar panels at the City's Bus Yard, Fire Station 1, and Sinsheimer
Pool.
‐ v. Install Transit Facility EV Charging Infrastructure
‐ vi. Review options to further integrate climate action into the 2023‐25 Financial Plan.
Ongoing
236 CA
c. Provide for 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.
Ongoing
237 CA d. Update the Clean Energy Choice Program for New Buildings for consistency with the 2022
California Building Code update, as called for by CAP Green Buildings task 1.1.Complete
238 CA
f. Initiate a new grant program to catalyze energy efficiency and decarbonization retrofit projects
in existing buildings that will also serve as demonstration and showcase projects, in support of
CAP Green Buildings task 2.1.
Ongoing
239 CA g. Implement organic waste reduction measures required by California Senate Bill 1383, which
are also called for by CAP Circular Economy tasks 1.1, 1.2, 1.3, and 2.1.Ongoing
4.2 Continue to update and implement the Climate Action Plan ("CAP") for carbon neutrality
4.1 Provide Sustainability Resources to achieve Council's Adopted Goals
Budget Report Pg. 71 Page 443 of 489
MCG Task Completion Date
MCG Key: ERR= Economic Recovery, Resiliency & Fiscal Sustainability; DEI= Diversity, Equity & Inclusion; HH=Housing and Homelessness;
CA= Climate Action, Open Space & Sustainable Transportation
240 CA g. Provide support for community electric mobility work being led by the SLO Climate Coalition,
in support of CAP Connected Communities task 3.1.Ongoing
241
242 CA
a. Working with the Coastal San Luis Resource Conservation District, complete existing planning
efforts and pilot program implementation at Johnson Ranch Open Space and City Farm intended
to improve soil health and remove and store carbon, as called for at CAP Natural Solutions task
1.1.
FY23 Q2
243 CA
b. Complete an Urban Forest Master Plan including a comprehensive update of tree inventory
update, assessment of tree canopy coverage, and implementation of an ongoing tracking system,
as called for by CAP Natural Solutions task 2.1.
FY23 Q4
244 CA
c. Establish a contract service for enhanced tree pruning and maintenance to ensure the long‐
term health and vigor of the City's Urban Forest, as well as public safety and identify a strategy
for a prioritized replacement schedule for downtown focus trees, and begin implementation in
order to ensure the long‐term preservation of the Downtown street tree canopy.
Ongoing
245 CA
d. Partner with ECOSLO to support the 10,000 Trees by 2035 goal through a tree planting and
maintenance program, as well as continue with the SLO Stewards Docent Program, annual creek
clean up efforts, and administration of the SLO Green Business Program.
Ongoing
246 CA e. Actively pursue opportunities to purchase open space lands and permanent land conservation
agreements in furtherance of the City's Greenbelt Protection Program.Ongoing
247 CA g. Implement priority projects and actions at Cerro San Luis Natural Reserve consistent with the
updated Conservation Plan.Ongoing
248 CA
h. Update the existing South Hills Natural Reserve Conservation Plan (2007), including a
contemporary natural resources inventory, mapping, policy review, and identification of land
stewardship needs and priorities.
FY23 Q4
249 CA i. Implement priority projects at South Hills Natural Reserve consistent with the updated
Conservation Plan.Ongoing
250 CA j. Create the Righetti Hill Open Space Conservation Plan in order to guide the long‐term
protection and appropriate public use of this new City Open Space property.FY23 Q4
251 CA k. Implement priority projects at Righetti Hill Open Space consistent with the Conservation Plan. FY23 Q4
252 CA l. Complete installation of adopted trail systems and establish regular Ranger Service patrol at
Miossi Open Space.FY23 Q4
253 CA m. Complete installation of adopted trail systems at the Waddell Ranch addition to the Irish Hills
Natural Reserve. FY23 Q4
254 CA
n. Continue Open Space education activities including the "hikes with experts" series, Junior
Ranger Camp, supporting the SLO Stewards Docents, and ongoing public information and
programming.
Ongoing
255 CA
o. Continued 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
Ongoing
256 CA
p. Continued, 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.
Ongoing
257 CA
q. Implement Laguna Lake Dredging and Sediment Management and Shoreline Stabilizations
Projects in order to begin restoration of the lake for recreation and habitat improvement
purposes
Complete
258
259 CA
a. Establish consistent mode split tracking and reporting method, consistent with performance
monitoring recommendations as called for in the Active Transportation Plan and CAP Connected
Communities task 1.1.
FY23 Q2
4.4 Alternative and sustainable transportation
4.3 Continue preservation, maintenance, and enhancement of the City's open space and urban forest
Budget Report Pg. 72 Page 444 of 489
MCG Task Completion Date
MCG Key: ERR= Economic Recovery, Resiliency & Fiscal Sustainability; DEI= Diversity, Equity & Inclusion; HH=Housing and Homelessness;
CA= Climate Action, Open Space & Sustainable Transportation
260 CA
b. Prepare a Mobility as a Service Study to guide potential implementation of programs and
software tools to create an integrated platform linking access to transit, future bikeshare and
ridesharing services, as called for in CAP Connected Communities task 1.2.
FY23 Q4
261 CA
c. Prepare a Transit Innovation Study to provide a blueprint to guide the transition to increased
service frequency, electrification and feasibility of no‐fare service for students, seniors, and
others as called for in CAP Connected Communities tasks 4.2, 4.3, and 4.4.
FY23 Q4
262 CA
d. Active Transportation Plan (ATP) Implementation:
Implement infrastructure improvements and programs specifically identified in the City's Active
Transportation Plan to improve access, mobility and safety for walking and bicycling citywide.
Actions support the CAP Connected Communities task 2.1, ATP. Specific projects and programs
within the current work program include:
‐ i. Plan, Design and Construct the ATP Tier 1 Network
‐ ii. Construct Minor Bicycle and Pedestrian Access & Safety Improvements
‐ iii. Complete preliminary design and right‐of‐way acquisition for the Railroad Safety Trail
(Tiburon to Orcutt Road)
‐ iv. Implement complete street improvements as part of 2021 and 2022 Roadway Sealing
Projects
‐ v. Continue to monitor trends in the Micromobility industry and feasibility of future SLO
Bikeshare Program.
‐ vi. Complete construction of the Broad/Woodbridge Pedestrian Hybrid Beacon crossing
Ongoing
263 CA
e. Perform additional sweeping to remove debris and obstructions along sidewalks, shared‐use
paths, and bike lanes, including use of narrow street sweeping machinery and manual sweeping
to clear protected bike lanes, parklets and painted bulb outs. FUNDING IN ECONOMIC RECOVERY
1.4 e‐2.
Ongoing
264 CA f. Construct sidewalk repairs and new ADA curb ramps to improve access and safety for
pedestrians, particularly those with mobility challenges.Ongoing
265 CA
g. Achieve meaningful progress towards the "Vision Zero" goal by implementing
recommendations from the City's Annual Traffic Safety & Operations Program, with particular
focus on eliminating injury collisions involving vulnerable road users such as bicyclists,
pedestrians, seniors and children.
Ongoing
266 CA
h. Construct the Cerro San Luis Neighborhood Greenway Phases 1B and 2, completing the priority
bicycle and pedestrian route between Foothill Boulevard and Downtown SLO, including safety
lighting and public artwork at the US 101/Chorro Undercrossing
FY 23‐24 (next
Financial Plan)
267 CA i. Complete construction of the Orcutt Road/Tank Farm Road Roundabout, reducing congestion
and auto emissions and improving access and safety for bicycles, pedestrians and drivers.Complete
268 CA j. Complete construction of the California/Taft Roundabout, reducing congestion and auto
emissions and improving access and safety for bicycles, pedestrians and drivers.FY23 Q4
269 CA k. Install new streetlights throughout the city Ongoing
270 CA l. Install new solar path lights along the Bob Jones and Railroad Safety Trails, utilizing solar
options where feasible, to improve safety for active transportation users.
FY 23‐24 (next
Financial Plan)
271 CA m. Widen Higuera Street from Bridge to Elks to address collision trends by providing a center left‐
turn lane and improve bicycle facilities. FY23 Q2
272 CA n. Continue Active Transportation Education and Outreach to encourage safe behaviors for all
road users and to encourage interest and use of active transportation modes.Ongoing
273 CA o. Prepare Feasibility Study for Potential City VMT Mitigation Program, providing a programmatic
mechanism to reduce VMT and GHG production of new development projects within the city.Ongoing
274 CA p. Continue advancing the electrification of the SLO Transit vehicle fleet, including electrification
of buses and bus charging infrastructure. Ongoing
275 CA q. Replace SLO Transit bus shelters to maintain a quality environment for new and future transit
users.FY23 Q2
Budget Report Pg. 73 Page 445 of 489
MCG Task Completion Date
MCG Key: ERR= Economic Recovery, Resiliency & Fiscal Sustainability; DEI= Diversity, Equity & Inclusion; HH=Housing and Homelessness;
CA= Climate Action, Open Space & Sustainable Transportation
276 CA r. Fund two Transportation Interns to assistance with implementation of sustainable
transportation projects and programs.Ongoing
277 CA s. Implement Neighborhood Traffic Management Program to address traffic speeding concerns
through local residential streets and collector/arterial streets with fronting residential uses.Ongoing
278 CA t. Preserve and repair pavement surface within SLO Transit Bus Yard FY 23‐24 (next
Financial Plan)
279 CA
u. Pedestrian & Bicycle Pathway Maintenance: Preserve and repair pavement service along off‐
street pedestrian/bicycle pathways (RRST from Cal Poly to Taft; Madonna Inn Path; Meadow Park
Paths)
Ongoing
280 CA
v. Street Reconstruction and Resurfacing: Implement the City's Pavement Management Program,
reparing pavement surfaces along roadways throughout the city while leveraging opportunities
for safety and multimodal street improvements.
Ongoing
281 CA w. Traffic Sign & Striping: Repair and replace traffic signs and roadway pavement markings to
maintain traffic control measures for all road users in a state of good repair.Ongoing
282 CA
x. Development Agreements: Fund the City's share of costs associated with public infrastructure
to be constructed by private development projects per reimbursement agreements for the
following projects:
‐ Avila Ranch ‐‐ City share of Buckley Road Extension Class I Path
‐ 600 Tank Farm ‐‐ City share of Tank Farm/Santa Fe Roundabout, Santa Fe Road Extension, and
Design & Right‐of‐Way for Tank Farm Class I Path
FY23 Q4
283
284 CA
a. Complete the "Resilient SLO" planning project (Safety Element Update and associated CEQA) to
assess community vulnerability to the impacts of climate change and adopt a resilience policy
framework in the City's General Plan, as required by California Senate Bill 379.
FY23 Q3
285 CA
b. Following successful piloting at Terrace Hill Open Space, implement and expand vegetation
management for fire fuel reduction, as well as to promote soil health and recruitment of native
perennial bunchgrasses, using goats and sheep with a professional contractor in order to ensure
a safe and effective operation.
Ongoing
286 CA
c. Proactively conduct pre‐season inspections of the creek system and implement the removal of
woody debris, hazardous trees, and other obstacles that could lead to an increased potential for
local flooding in accordance with the City's Routine Maintenance Agreement permit issued by the
California Department of Fish and Wildlife.
Ongoing
287 CA
d. Replace or repair Open Space fencing that is currently in disrepair at Cerro San Luis Natural
Reserve, Irish Hills Natural Reserve, Bowden Ranch Open Space, and the Bob Jones Trail.
(Includes existing Creek and Flood Protection Staffing resources)
FY23 Q4
288 CA e. Respond quickly to instances when hazardous trees are identified on City Open Space lands or
creek areas where the City has a property interested.Ongoing
289 CA
f. Conduct a microgrid feasibility assessment to identify City properties that could add solar,
battery storage, and controls to allow operation during times of electrical grid outages as an
uninterruptable power supply.
FY23 Q4
290 CA
g. Support development of the "Micro Community Collaborative" (MCC) initiative with SLO
Climate Coalition, which includes a 1) web platform for community members to learn how they
can complete their own sustainability initiatives, and 2) coordinating support to advertise the
web platform and support communities of practice throughout the city.
Ongoing
291 CA
h. Establish an Open Space Fire Fuel Reduction Crew (part‐time staff, 4,000 hours), including
procurement of necessary machinery and equipment, in order to ensure that the City's has a
reliable means of conducting fuel reduction activities.
Ongoing
292 CA
i. Expand Technical Rescue Team roster from 3 to 6 firefighters to improve the City's open space
rescue capabilities and improve self‐sufficiency following the first 72 hours of a regional disaster
such as earthquake or flood where resources are often limited.
Complete
4.5 Planning and implementation for resilience
Budget Report Pg. 74 Page 446 of 489
MCG Task Completion Date
MCG Key: ERR= Economic Recovery, Resiliency & Fiscal Sustainability; DEI= Diversity, Equity & Inclusion; HH=Housing and Homelessness;
CA= Climate Action, Open Space & Sustainable Transportation
293 CA
j. Project: Storm Drainage Infrastructure Replacement ‐ capital maintenance and replacement of
pipe, culvert and constructed drainage channels to provide increased flood protection and
reduced likelihood of loss of property
Ongoing
294 CA
k. Project: Inlet Trash Capture Devices (Water and Wastewater Management Element: The City
will manage the collection system to ensure that the proper level of maintenance is provided and
that the flow in sanitary sewers does not exceed design capacity.) This annual asset maintenance
project addresses capital maintenance and replacement of pipe, culvert and constructed
drainage channels to provide increased flood protection and reduced likelihood of loss of
property.
Ongoing
295 CA
l. Project: Pismo/Johnson/San Luis Creek Bank Stabilization ‐ San Luis Creek passes under
Johnson Avenue near Pismo Street. The creek bank is starting to erode and this project will
stabilize the creek bank and protect Pismo Street.
Ongoing
296 CA m. Project: Hydration Stations at Various Parks ‐ funding annually for parks surfacing
maintenance and water supply infrastructure including the installation of hydration stations.Ongoing
297 CA
n. Project: Laguna Lake Dredging ‐ rerouting of Prefumo Creek has increased sediment deposits
into the lake. This is a pilot project to ascertain if dredging is a viable solution for Laguna Lake
and could become a routine maintenance activity.
Complete
298 CA
o. Project: Ludwick Community Center ‐ Roof and Solar Replacement (This funding provides for
capital maintenance of facilties that will reduce unplanned repair costs and optimize energy use
by providing planned equipment replacements and building shell sealing. Benefits of proper
infastructure maintenance reduces the cost of major repairs, increases energy efficency, and
ensures the facilities remain in functional condition.)
FY 23‐24 (next
Financial Plan)
299 CA
p. Water Treatment Plant Emergency Power ‐ PSPS ‐ additional temporary or permanent
emergency generators, requiring engineering design and inspection services, and construction at
the Water Treatment Plant, Whale Rock Reservoir, and other water pump stations.
Ongoing
300 CA
q. Water Treatment Plant ‐ Power Storage Units Tesla Battery Grant ‐ when emergency power is
not required for plant operations, the power storage units will allow plant staff to shift power
needs during electrical time of use periods having lower electrical rates, and lower carbon
emissions associated with the transmission of electrical power. The control module operating the
power storage units will also monitor and track energy efficiencies of existing pumps and the
plant’s treatment units.
Complete
301 CA
r. Sustainable Groundwater Management Act (SGMA) Groundwater Sustainbility Plan (GSP) ‐
collaborate with Groundwater Sustainability Agency (GSA) stakeholders to effectively manage the
groundwater basin in the City, which may include preparation of research studies, field
investigations, legal documents, grant applications, and regional participation in the
development of a GSP.
Ongoing
302 CA s. Mid‐Higuera Bypass ‐ this funding provides final engineering design work for this long‐planned
flood control project between Marsh Street and Madonna Road along San Luis Obispo Creek. Ongoing
Budget Report Pg. 75 Page 447 of 489
Appendix A: Detailed Financials - Revenue
Appendix A
Continued on next page
Revenue - General Fund and Special Assessment Funds
General Fund Revenue 21-22 Actual Total Budget Actuals (YTD)Variance**%
Received
Revised
Budget
Total Mid
Year
Changes
Tax and Franchise Revenue
1 Sales Tax (Bradley Burns)22,201,225 21,789,000 7,365,867 (14,423,133) 33.8%21,524,304 (264,696)
2 Local Revenue Measure G20*29,172,258 27,049,000 10,170,239 (16,878,761) 37.6%30,141,532 3,092,532
3 Safety Prop 172 529,299 497,000 185,147 (311,853) 37.3%497,000 -
4 Property Tax 20,970,984 20,746,387 1,453,618 (19,292,769) 7.0%21,473,397 727,010
5 Transient Occupancy Tax 10,650,762 8,636,000 4,599,391 (4,036,609) 53.3%10,704,000 2,068,000
6 Utility User Tax 5,085,292 5,544,000 2,074,128 (3,469,872) 37.4%5,544,000 -
7 Business Tax 2,861,863 2,889,000 3,179,269 290,269 110.0%3,157,566 268,566
8 Cannabis Tax 998,875 1,400,000 369,425 (1,030,575) 26.4%1,100,000 (300,000)
9 Franchise Fees 1,978,295 1,606,000 634,937 (971,063) 39.5%1,800,000 194,000
10 Gas Tax*1,130,063 1,245,024 735,743 (509,281) 59.1%1,305,634 60,610
11 Gas Tax (SB1)*911,849 1,049,877 162,439 (887,438) 15.5%1,019,914 (29,963)
* Special Revenue Fund or Sub-fund
Fees for Service and Other Revenue
12 Development Review 5,970,996$ 6,361,554$ 2,981,911$ (3,379,643)$ 46.9%6,361,554$ -$
13 Building Permits 3,165,038 2,921,700 1,322,492 (1,599,208) 45.3%2,921,700 -
14 Code Enforcement Fines 61,695 60,000 28,692 (31,308) 47.8%60,000 -
15 Development Review Fees 363,396 341,228 169,401 (171,827) 49.6%341,228 -
16 Encroachment Permits 295,643 323,340 162,582 (160,758) 50.3%323,340 -
17 Engineering Development Review 136,274 123,803 67,435 (56,368) 54.5% 123,803 -
18 Infrastructure Plan Chck & Insp 408,035 1,432,352 260,522 (1,171,830) 18.2% 1,432,352 -
19 Plan Check Fees 1,280,615 661,377 679,329 17,951 102.7% 661,377 -
20 Planning & Zoning Fee 470,462 416,195 291,458 (124,737) 70.0% 416,195 -
21 TIPP- Contra Revenue Account (210,161) 81,559 - (81,559) 0.0% 81,559 -
22 Parks & Recreation 1,694,241$ 1,984,802$ 729,906$ (1,254,897)$ 36.8% 1,988,802$ 4,000$
23 Adult Athletic Fees 103,148 154,362 39,661 (114,702) 25.7% 154,362 -
24 Aquatics Daily Use Fees 89,743 115,175 56,402 (58,773) 49.0% 115,175 -
25 Driving Range Fees 8,860 12,900 5,685 (7,216) 44.1% 12,900 -
26 Golf Cart Rentals 14,050 29,675 11,747 (17,928) 39.6% 29,675 -
27 Golf Greens Fees 178,024 235,180 81,109 (154,071) 34.5% 235,180 -
28 Golf Lesson Fees 159 - 299 299 - -
29 Golf Rental Fees 6,070 11,232 2,534 (8,698) 22.6% 11,232 -
30 Indoor Rental & Use Fees 30,115 65,100 21,568 (43,532) 33.1% 65,100 -
31 Instruction Fees 84,501 97,830 31,288 (66,542) 32.0% 97,830 -
32 Junior Ranger Camps 5,808 4,982 150 (4,832) 3.0%4,982 -
33 Library Rental 4,780 16,290 1,589 (14,701) 9.8% 16,290 -
34 Multi Day Swim Passes 59,898 44,383 35,335 (9,048) 79.6% 44,383 -
35 Other Parks & Rec Revenue 40,804 64,364 24,859 (39,505) 38.6% 64,364 -
36 Outdoor Rental & Use Fees 66,494 129,960 81,010 (48,950) 62.3% 129,960 -
37 Sales Taxable 11,852 10,000 2,724 (7,276) 27.2% 10,000 -
38 Special Events - City Sponsered 149 13,583 132 (13,451) 1.0% 13,583 -
39 Special Events App/Permit 30,653 33,293 11,752 (21,541) 35.3% 33,293 -
40 Special Events Insurance 7,877 6,000 4,425 (1,575) 73.8% 10,000 4,000
41 Swim Instruction Fees 86,617 75,108 21,398 (53,710) 28.5% 75,108 -
42 Therapy Pool Fees 3,642 16,304 2,475 (13,829) 15.2% 16,304 -
43 Youth Athletic Fees 63,619 55,000 12,239 (42,761) 22.3% 55,000 -
44 Youth Services Camps 167,010 154,275 18,925 (135,350) 12.3% 154,275 -
45 Youth Services Childcare 630,369 639,806 262,600 (377,206) 41.0% 639,806 -
Appendix A: Detailed Financials
FY 2022-23 Mid-Year Changes
Budget Report Pg. 76 Page 448 of 489
Appendix A: Detailed Financials - Revenue
Continued on next page
General Fund Revenue 21-22 Actual Total Budget Actuals (YTD)Variance**%
Received
Revised
Budget
Total Mid
Year
Changes
46 Fire 1,502,356$ 1,576,322$ 572,210$ (1,004,112)$ 36.3%1,582,847$ 6,525$
47 Cal Poly Fire Services 273,567 361,684 181,055 (180,630) 50.1%361,684 -
48 CUPA Inspection Fees 187,019 172,800 1,894 (170,906) 1.1%172,800 -
49 Fire Alarm Permits 10,994 10,010 4,184 (5,826) 41.8%10,010 -
50 Fire Department Permits 98,529 108,000 97,133 (10,867) 89.9%108,000 -
51 Fire Plan Check & Inspection 379,865 350,000 168,111 (181,889) 48.0%350,000 -
52 Medical ER Recovery 201,991 216,938 103,520 (113,418) 47.7%216,938 -
53 Other Fire Dept Revenue 21,195 5,890 (3,116) (9,006) -52.9%5,890 -
54 R1 Inspection Fees 329,197 351,000 19,428 (331,572) 5.5%357,525 6,525
55 Police 561,909$ 641,529$ 213,357$ (428,173)$ 33.3%628,139$ (13,390)$
56 Accident Reports 4,333 3,400 2,259 (1,141) 66.4%3,400 -
57 Administrative Citations 95,204 152,833 42,506 (110,327) 27.8%152,833 -
58 Alarm Permits - Contract 80,204 90,000 64,317 (25,683) 71.5%90,000 -
59 Collision Investigation 1,139 3,000 - (3,000) 0.0%3,000 -
60 DUI Cost Recovery 25,622 16,417 16,579 162 101.0%20,000 3,583
61 Miscellaneous Revenue 6,417 - 4,891 4,891 - -
62 Other Police Revenue 212,914 259,204 66,873 (192,331) 25.8%240,000 (19,204)
63 Police Department Permits 5,027 7,511 1,716 (5,795) 22.8%5,100 (2,411)
64 Police Issued Parking Fines 80,969 70,000 - (70,000) 0.0%70,000 -
65 Property Release Fees - (1,642) 1,058 2,700 -64.4%- 1,642
66 Second Response Fees 1,437 1,200 238 (962) 19.8%1,200 -
67 Tobacco Permits 28,421 29,000 - (29,000) 0.0%29,000 -
68 Tow Release Fees 15,824 9,000 11,530 2,530 128.1%12,000 3,000
69 Witness Fees 4,400 1,606 1,390 (216) 86.6%1,606 -
70 Business Licenses (Incl Cannabis)625,468$ 655,911$ 629,788$ (26,123)$ 96.0%622,911$ (33,000)$
71 Business Licenses 498,089 445,911 496,695 50,784 111.4%445,911 -
72 Cannabis Operator License 127,380 210,000 133,093 (76,907) 63.4%177,000 (33,000)
73 Other Revenue (466,315)$ 1,070,555$ (210,689)$ (1,281,244)$ -19.7%(429,445)$ (1,500,000)$
74 Damage to City Property 100,133 17,514 32,190 14,676 183.8%17,514 -
75 Federal Grants 38,467 - 380 380 - -
76 Fines & Fortfietures 96,070 156,096 29,789 (126,307) 19.1%156,096 -
77 Impact Fees/Special Assessments 100,089 - 38,169 38,169 - -
78 Interest on Investment (1,478,066) 230,000 (461,589) (691,589) -200.7% (1,270,000) (1,500,000)
79 Miscellaneous Revenue 487,150 509,100 97,541 (411,559) 19.2% 509,100 -
80 Rent & Lease Revenue 189,842 157,845 52,830 (105,015) 33.5% 157,845 -
81 Grants & Subventions 2,028,668$ 776,638$ 890,421$ 213,782$ 131.6% 776,638$ -$
82 AB939 Reimbursement 190,196 327,328 188,013 (139,315) 57.4% 327,328 -
83 Federal Grants 27,046 100,000 100,000 100,000 100.0% 100,000 -
84 Law Enforcement SB229 Grant 145,185 140,000 112,771 (27,229) 80.6% 140,000 -
85 Mutual Aid Reimbursements 1,077,293 - 319,102 319,102 - -
86 Office of Traffic Safety (OTS)- - - - - -
87 Other Grants/Subventions 198,395 70,000 53,894 (16,106) 77.0% 70,000 -
88 Police Training Grant (POST)65,800 10,257 78,324 68,067 763.6% 10,257 -
89 State Grants & Subventions 243,586 9,053 19,780 10,726 218.5% 9,053 -
90 Zone 9 Streambed Clearance 81,166 120,000 18,536 (101,464) 15.4% 120,000 -
91 General Fund Total 108,408,086$ 105,518,600$ 36,737,106$ (68,681,495)$ 34.8% 109,798,793$ 4,280,193$
** Many revenues are "lumpy" in nature and may be collected entirely in the beginning or end of the year. Unless the budget is being
adjusted, it is considered on track.
FY 2022-23 Mid-Year Changes
Budget Report Pg. 77 Page 449 of 489
Appendix A: Detailed Financials - Revenue
Continued on next page
Assessment Revenue 21-22 Actual Total Budget Actuals (YTD)Variance %
Received
Revised
Budget
Total Mid
Year
Changes
92 Downtown 227,202$ 275,000$ 264,110$ (10,890)$ 96.0% 275,000$ -$
93 Downtown Assoc. Assessment* 227,202$ 275,000$ 264,110$ (10,890)$ 96.0% 275,000$ -$
94 Tourism Bid Fund 2,111,688$ 1,727,202$ 899,725$ (827,477)$ 52.1% 2,120,800$ 393,598$
95 Interest on Investment 9,304$ -$ 2,272$ 2,272$ 10,000$ 10,000$
96 Investment FMV Adjustment (32,606)$ -$ (12,676)$ (12,676)$ (30,000)$ (30,000)$
97 TBID Assessment Revenue 2,127,374$ 1,727,202$ 910,129$ (817,073)$ 52.7% 2,140,800$ 413,598$
98 Total 2,338,890$ 2,002,202$ 1,163,835$ (838,367)$ 58.1% 2,395,800$ 393,598$
* The majority of this revenue is collected at the beginning of the fiscal year during the annual business license renewal period. Although
the City collects this revenue, it is distributed to the Downtown Association.
FY 2022-23 Mid-Year Changes
Budget Report Pg. 78 Page 450 of 489
Appendix A: Detailed Financials – Expenditures
Continued on next page
On track
Trending high or low but identified solution or savings in a different cost center
Trending high or low with no identified solution
Table 3: General Fund Operating Expenditures by
Department/Cost Center* Total Budget Year-to-date
Actual
Funds
Available
Amount
% Expended
(or committed)
Community Services
Community Development Department $ 6,969,990 $ 3,311,618 $ 3,658,373 48%
4001-Community Development Administration $ 811,262 $ 304,544 $ 506,719 38%
4002-Commissions and Committees $ 34,948 $ 5,783 $ 29,166 17%
4003-Planning $ 1,565,423 $ 722,894 $ 842,529 46%
4004-Engineering $ 849,757 $ 370,279 $ 479,478 44%
4006-Building and Safety $ 2,632,958 $ 1,482,723 $ 1,150,235 56%
4008-Housing Policy and Homelessness Programs $ 1,075,642 $ 425,396 $ 650,247 40%
CSG Admin $ 680,694 $ 304,899 $ 375,795 45%
1009-Community Services Group $ 680,694 $ 304,899 $ 375,795 45%
Parks & Recreation $ 4,774,766 $ 2,102,981 $ 2,671,785 44%
7001-Recreation Administration $ 654,117 $ 328,714 $ 325,403 50%
7002-Recreation Facilities $ 296,976 $ 147,113 $ 149,863 50%
7003-Youth Services $ 1,182,424 $ 452,781 $ 729,643 38%
7004-Community Services $ 629,531 $ 205,333 $ 424,198 33%
7005-Ranger Service $ 718,764 $ 322,288 $ 396,476 45%
7006-Aquatics $ 605,003 $ 296,046 $ 308,957 49%
7007-Golf Course $ 675,550 $ 348,582 $ 326,968 52%
7008-Jack House $ 12,400 $ 2,123 $ 10,277 17%
Public Works $ 15,597,853 $ 8,554,939 $ 7,042,914 55%
5001-Public Works Administration $ 1,075,334 $ 500,483 $ 574,851 47%
5002-Parks Maintenance $ 3,573,594 $ 2,267,051 $ 1,306,542 63%
5003-Swim Center Maintenance $ 576,071 $ 294,782 $ 281,290 51%
5004-Urban Forest Services $ 474,400 $ 212,918 $ 261,482 45%
5005-Facilities Maintenance $ 1,323,715 $ 679,159 $ 644,556 51%
5006-Street/Sidewalk Maintenance $ 2,370,108 $ 1,240,289 $ 1,129,819 52%
5007-Traffic Signals and Lighting $ 515,158 $ 251,024 $ 264,134 49%
5008-Fleet $ 1,332,862 $ 826,100 $ 506,762 62%
5009-CIP Project Eng $ 2,380,923 $ 1,187,515 $ 1,193,408 50%
5010-Transportation Plan and Eng $ 971,707 $ 544,371 $ 427,336 56%
5301-Stormwater $ 1,003,981 $ 551,247 $ 452,735 55%
6107-Solid Waste Recycling $ 424,442 $ 96,384 $ 328,058 23%
Appendix A - Detailed Financials
FY 2022-23
Budget Report Pg. 79 Page 451 of 489
Appendix A: Detailed Financials – Expenditures
Note 1: This cost center includes the budget for equity adjustments and various other wage adjustments
that were approved after initial departmental budget development (February 2022). This budget line item
is used to offset the overages if departments end the year over budget in staffing. For FY 2022-23, staff
expect the contingency budget to be fully utilized.
Continued on next page
Table 3: General Fund Operating Expenditures by
Department/Cost Center* Total Budget Year-to-date
Actual
Funds
Available
Amount
% Expended
(or committed)
Internal Services
Admin/IT $ 11,020,509 $ 6,143,648 $ 4,876,861 56%
1001-City Administration $ 1,370,915 $ 756,928 $ 613,987 55%
1002-City Council $ 203,397 $ 92,623 $ 110,774 46%
1003-Cultural Activities $ 357,963 $ 334,269 $ 23,694 93%
1004-Economic Development $ 1,167,973 $ 675,457 $ 492,516 58%
1005-Natural Resource Protection $ 947,530 $ 567,640 $ 379,890 60%
1007-Community Promotion $ 432,731 $ 376,227 $ 56,503 87%
1010-Office of DEI $ 1,074,256 $ 361,910 $ 712,346 34%
1021-City Clerk $ 657,517 $ 261,325 $ 396,192 40%
1101-Network Services $ 3,711,506 $ 2,170,279 $ 1,541,227 58%
1103-Information Services $ 1,096,721 $ 546,990 $ 549,731 50%
City Attorney $ 1,403,101 $ 737,823 $ 665,278 53%
1501-City Attorney $ 1,403,101 $ 737,823 $ 665,278 53%
Finance $ 2,073,042 $ 1,057,407 $ 1,015,634 51%
2001-Financial Administration $ 525,510 $ 266,133 $ 259,377 51%
2002-Budget $ 148,361 $ 77,200 $ 71,162 52%
2003-Revenue Management $ 421,563 $ 200,207 $ 221,356 47%
2004-Purchasing $ 183,676 $ 100,441 $ 83,235 55%
2005-Accounting $ 793,930 $ 413,426 $ 380,505 52%
Human Resources $ 1,731,946 $ 1,027,414 $ 704,533 59%
3001-Human Resources $ 1,712,699 $ 1,025,518 $ 687,182 60%
3003-Wellness Program $ 19,247 $ 1,896 $ 17,351 10%
Non-Dept/Support Services $ 3,459,216 $ 222,591 $ 3,236,625 6%
2006-Finance Support Services $ 630,988 $ 82,461 $ 548,527 13%
2007-Finance NonDepart (see Note 1) $ 2,828,228 $ 140,131 $ 2,688,098 5%
FY 2022-23
Budget Report Pg. 80 Page 452 of 489
Appendix A: Detailed Financials – Expenditures
Continued on next page
Table 3: General Fund Operating Expenditures by
Department/Cost Center* Total Budget Year-to-date
Actual
Funds
Available
Amount
% Expended
(or committed)
Public Safety
Fire $ 11,533,406 $ 5,834,974 $ 5,698,432 51%
8501-Fire Administration $ 926,083 $ 464,365 $ 461,718 50%
8502-Emergency Reponse $ 8,696,658 $ 4,448,424 $ 4,248,234 51%
8503-Hazard Prevention $ 750,353 $ 334,392 $ 415,962 45%
8504-Training Services $ 123,582 $ 32,473 $ 91,109 26%
8505-Recruit Academy $ 83,819 $ 8,193 $ 75,625 10%
8506-Fire Apparatus Services $ 447,381 $ 257,524 $ 189,858 58%
8507-Fire Station Facility Support $ 43,712 $ 11,381 $ 32,331 26%
8510-Mobile Crisis Unit $ 305,137 $ 180,843 $ 124,293 59%
8599-Emergency Management $ 156,681 $ 97,379 $ 59,302 62%
Police $ 16,376,619 $ 7,833,470 $ 8,543,149 48%
8001-Police Administration $ 2,035,650 $ 1,048,810 $ 986,839 52%
8002-Patrol $ 8,021,971 $ 4,372,470 $ 3,649,501 55%
8003-Investigations $ 2,655,382 $ 831,522 $ 1,823,860 31%
8004-Police Support Services $ 2,602,416 $ 1,114,689 $ 1,487,727 43%
8005-Neighborhood Services $ 258,850 $ 134,297 $ 124,553 52%
8006-Traffic Safety $ 802,351 $ 331,682 $ 470,669 41%
Grand Total $ 76,045,584 $ 37,229,336 $ 38,816,248 49%
FY 2022-23
Budget Report Pg. 81 Page 453 of 489
Appendix A: Detailed Financials – Expenditures
Table 4: Enterprise Fund Operating
Expenditures by Fund/Cost Center* Total Budget Year-to-date
Actual
Funds
Available
Amount
% Expended
(or committed)
601-Water Fund 18,399,852$ 12,306,887$ 6,092,965$ 67%
6001-Water Administration/Engineering 1,538,228$ 670,246$ 867,981$ 48%
6002-Water Source of Supply 11,097,545$ 8,638,260$ 2,459,285$ 78%
6003-Water Treatment 3,249,974$ 1,627,545$ 1,622,429$ 50%
6004-Water Distribution 1,666,296$ 884,654$ 781,642$ 53%
6005-Water Resources 537,101$ 222,874$ 314,227$ 41%
6105-Utility Billing 310,707$ 263,307$ 47,401$ 85%
602-Sewer Fund 8,344,068$ 4,410,343$ 3,933,725$ 53%
6101-Wastewater Admin and Eng 1,484,304$ 694,514$ 789,791$ 50%
6102-Wastewater Collection 1,268,816$ 571,125$ 697,691$ 45%
6103-Environmental Programs 262,722$ 136,399$ 126,323$ 52%
6104-Water Resource Recovery 4,153,303$ 2,421,743$ 1,731,561$ 58%
6105-Utility Billing 312,457$ 261,725$ 50,733$ 84%
6106-Water Quality Lab 862,464$ 324,838$ 537,626$ 38%
611-Parking Fund 3,146,170$ 1,541,474$ 1,604,696$ 49%
5101-Parking Admin 3,146,170$ 1,541,474$ 1,604,696$ 49%
621-Transit Fund 4,299,266$ 3,537,697$ 761,569$ 82%
5201-Transit Ops and Maint 4,299,266$ 3,537,697$ 761,569$ 82%
*Excludes Transfers
FY 2022-23
Table 5: Other Operating Expenditures by
Fund/Cost Center* Total Budget Year-to-date
Actual
Funds
Available
Amount
% Expended
(or committed)
202-Downtown 275,000$ 261,258$ 13,742$ 95%
1008-Downtown Association Administration 275,000$ 261,258$ 13,742$ 95%
208-Tourism Bid Fund 1,955,814$ 1,592,046$ 363,768$ 81%
1006-Tourism and Bid Promotion 1,955,814$ 1,592,046$ 363,768$ 81%
406-Public Safety Equipment Replacement Fund 498,679$ 408,921$ 89,758$ 82%
8002-Patrol 73,857$ 72,900$ 957$ 99%
8501-Fire Administration 23,844$ 1,109$ 22,735$ 5%
8502-Emergency Reponse 400,978$ 334,912$ 66,066$ 84%
802-Insurance ISF Fund 5,345,571$ 5,143,925$ 201,647$ 96%
3050-Insurance ISF 5,345,571$ 5,143,925$ 201,647$ 96%
*Excludes Transfers
FY 2022-23
Budget Report Pg. 82 Page 454 of 489
Appendix B: One time 2021-23 Budget Allocations
Appendix B: One-Time Budget Allocations Ending June 30, 2023
The following list includes some of the one-time budget allocations from the 2021-23 Financial Plan that
are not currently included in the ongoing budget. Staff are not requesting Council action on any budget
allocations at this time; however are providing the list as recommend of things that should be
incorporated into ongoing operations before consideration of new initiatives. The reason that many of
these initiatives were budgeted as one time was because the economic outlook was unclear at the time.
1 Admin/IT
2 Arts, Culture and Community Partner Support 25,000$
3 City 101/Community Academy - Continuation of Pilot Program 15,000$
4 DEI Civic Spark Fellows 30,000$
5 DEI High Impact Grants 150,000$
6
ECOSLO partnership - SLO Stewards, Tree Planting & Maint., Green Business, Creek
Clean Up (4.3.c)20,000$
7 Contract Sustainability & Natural Resources Analyst (1 FTE)115,000$
8 CDD
9
Housing and Homelessness Major City Goal (25% Expansion of 40 Prado HSC Beds) -
Proportions City share to County contribution 63,826$
10 Contract Housing/Homelessness Assistant (1 FTE)86,000$
11 Finance
12 MOTION Subject Matter Expert (.5 FTE Supplemental)35,568$
13 Fire
14 Fire Intern Program 23,257$
15 Human Resources
16 Intern Funding 16,364$
17 Classification and Compensation Support 43,500$
18 Centre for Organization Effectiveness 40,000$
19 Parks & Rec
20 Contract Volunteer Coordinator (1 FTE) 102,000$
21 Public Works
22 Pilot: Contract Services for increased trash and recycling services in Public Spaces 125,000$
23 Supplemental Street and Parklet Sweeping 250,000$
24 Transportation Interns 31,071$
25 Plant Material and Supplies for Parks Beautification Gardener 25,000$
26 Increased Trash Services 40,000$
27 Public Works - Contract Coordinator (1 FTE)106,000$
28 Police
29 Four Contract Field Service Technician Positions (4 FTE)480,000$
30 Total 1,822,586$
Table A-2: Estimated Budget to Make One-time Allocations Ongoing
Budget Report Pg. 83 Page 455 of 489
Page 456 of 489
R ______
RESOLUTION NO. _____ (2023 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING AMENDMENTS TO THE 2022-23
BUDGET APPROPRIATIONS
WHEREAS, in accordance with San Luis Obispo Charter Section 802, the City
Manager has submitted the 2021-23 Budget Supplement to the Council for review and
consideration on June 7, 2022; and
WHEREAS, the Council appropriated the 2022-23 budget allocation including
operating, debt service, and capital improvement plan budgets; and
WHEREAS, in accordance with Budget Policy G under Financial Plan Purpose
and Organization, the Council will formally review the City’s fiscal condition, and am end
appropriations, if necessary, six months after the beginning of the year; and
WHEREAS, Senate Bill 1186 (2012) requires local agencies to collect an
additional fee when issuing a permit for the purpose of increasing certified access
specialist (CASp) services and compliance with construction-related accessibility
requirements; and
WHEREAS, the California Division of the State Architect does not advise the use
of funds from the SB 1186 fee by local jurisdictions to directly fund construction projects,
nor accessibility work that is not construction-related, as these activities are not clearly
permissible in law (Government Code Section 4467); and
WHEREAS, based on the Fiscal Year 2021 -22 audited financial statements
presented to Council on January 17, 2022, the CASp had a fund balance of $112,056 of
which $85,461 is currently assigned to the Sidewalk Replacement and Installation Project
#90849; and
WHEREAS, the City receives revenue under the Transportation Development Act
(TDA) which is restricted for the improvements and maintenance of bicycle and
pedestrian infrastructure and the 2022-23 allocation has been increased from $45,000 to
$78,869; and
WHEREAS, in accordance with the 2018-19 adopted Fiscal Health Response Plan
and as outlined in the long-term fiscal forecasts, the City will make an additional
discretionary payments towards CalPERS each year; and
WHEREAS, in accordance with Budget Policy B under Long Term Financial
Planning, the City will give priority to applying unassigned fund balance to pay down long-
term unfunded pension liabilities; and
Page 457 of 489
Resolution No. _____ (2023 Series) Page 2
R ______
WHEREAS, based on the Fiscal Year 2021-22 audited financial statements
presented to Council on January 17, 2022, the General Fund had an unassigned fund
balance of $8,356,724; and
WHEREAS, the City maintains a minimum fund balance of at least 20% of the
operating expenditures in the General Fund to provide for economic uncertainties, local
disasters, and other financial hardships; and
WHEREAS, expenditures related to the immediate response to the 2023 storms
and damages caused by the incident are an appropriate use of the General Fund reserve.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The 2022-23 revenue and expenditure budgets are hereby amended
to reflect the changes outlined in the 2022-23 Mid-Year Budget report.
SECTION 2. The 2022-23 adopted budget is hereby amended to un -appropriate
$85,461 of CASp funding from the Sidewalk Replacement and Installation Project #90849
and appropriate $14,638 toward eligible staff expenditures.
SECTION 3. The 2022-23 adopted budget is hereby am ended to appropriate an
additional $31,869 of current year budgeted TDA funding into the Pedestrian Facility
Improvement Project #1000502, bringing the total TDA funding allocation to $76,869.
Page 458 of 489
Resolution No. _____ (2023 Series) Page 3
R ______
SECTION 4. The City will make a $4,021,398 additional discretionary payment to
CalPERS.
SECTION 5. The City Manager shall have authority to use General Fund Reserve
balance to pay for operating and capital expenditures related to the January 2023 storm
events and any revenue over expenditures at the end of FY 2022-23 will be used to build
back the reserve.
SECTION 6. Direct and authorize the City Manager to seek all eligible
reimbursements from the Federal and State agencies to recover storm related operating
and capital expenditures related to the January 2023 storm events pursuant to the Robert
T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act), California
Disaster Assistance Act (CDAA) and other available Federal Public Assistance Programs.
Upon motion of _______________, seconded by _____________, and on the
following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2023.
___________________________
Mayor Erica A. Stewart
ATTEST:
________________________
Teresa Purrington, City Clerk
APPROVED AS TO FORM:
________________________
J. Christine Dietrick, City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington, City Clerk
Page 459 of 489
Page 460 of 489
Fiscal Health Contingency Plan
Originally Prepared in October 2001
Plan Purpose
The purpose of this plan is to establish a framework
and general approach in responding to adverse fiscal
circumstances.
What It’s Not: This plan is not intended to be a
specific “recipe” for expenditure cuts or revenue
increases: this needs to be determined on a case-by-
case basis. Preparing detailed reduction options
before they are truly needed is not recommended for
three reasons:
If not taken seriously, quality thought will not be
given to them.
If taken seriously, this is likely to result in
needless anxiety, and sends a conflicting
message if “times are good.”
And even if these were not constraints, they
would have a short shelf-life: needs and
priorities change over time.
However, this plan does set forth the foundation of
principles and values upon which specific responses
will be based.
Triggers
This plan will be “triggered” by any of the
following:
Any adverse fiscal circumstances as determined
by the City Manager, such as:
z Natural or human-made disasters.
z State budget takeaways.
z Large, unexpected costs.
z Economic downturns.
Whenever there are two consecutive quarters of
adverse fiscal results in one or more the City’s
top five General Fund revenues:
z Sales tax
z Property tax
z Transient occupancy tax (TOT),
z Utility users tax
z Vehicle license fee (VLF) “swap”
Adverse results include:
z Actual declines in revenues.
z Significant variances from projected
revenues.
General Fund Focus
This plan is focused on the General Fund, but
Enterprise Funds (water, sewer, parking, transit and
golf) will also fully participate for two key reasons:
We are one organization: all parts need to
participate.
It is strategically important to limit Enterprise
Fund rate increases (rate decreases would also
be nice) at a time when we may be considering
General Fund revenue increases.
Key Plan Elements
There are six key elements to this plan:
Maintaining minimum fund balance at policy
levels.
Following other key budget and fiscal policies.
Monitoring the City’s fiscal health on an
ongoing basis.
Assessing the challenge: short or long-term
problem?
Page 461 of 489
Fiscal Health Contingency Plan Page 2
Identifying options.
Preparing and implementing the action plan.
n Minimum Fund Balance
First Line of Defense in Adverse Circumstances
Maintaining minimum fund balances at policy
levels:
Allows continued operations and projects in
responding to short-term problems.
Provides a bridge—“breathing room”—in
addressing longer-term problems while
comprehensive response plans are developed.
This is especially important under Proposition
218, since there are limited opportunities to
implement new revenues.
o Other Key Budget and Fiscal Policies
Following our other key budget and fiscal policies
will prevent problems to begin with, and keep them
from getting bigger when they do happen. These are
set forth in Section B of the Financial Plan, and
include:
Balanced budget
Conservative investment practices
Diversified revenues
User fee cost recovery
Enterprise funds
New development pays its own way
Limited use of debt financing
Fleet replacement
Contracting for services
Productivity improvements
Z Fiscal Health Monitoring
In accordance with our budget and fiscal policies,
the City will develop and implement effective
ongoing systems for reporting and monitoring our
fiscal condition. These include:
Interim Reporting
Reliable automated financial management
system
On-line access organization-wide via the
network
Monthly financial reports
Quarterly “Newsletter” (provided electronically
to all employees)
Capital Improvement Plan (CIP) project-to-date
expenditure report
Mid-Year Budget Review
Special Reports: Sales Tax, TOT, Investments
Annual Reporting
Preparing audited financial statements in accordance
with generally accepted accounting principles and
highest standards.
q Assess: Short or Long-Term Problem?
Different Strategies for Different Problems
Short-Term: One-time event or downturn that
is not likely to continue indefinitely.
“One-time” fixes are an appropriate response for
“one-time” problems.
Long-Term: Ongoing downturn in revenues or
increases in costs that are systemic.
In this case, “one-time” fixes won’t work: this
requires new ongoing revenues or ongoing
expenditure reductions.
Assessment: Short-Term Problem
Hiring Chill. City Manager approval will be
required to fill vacant regular positions. To fill a
vacant position, department heads must
demonstrate that it is necessary in meeting
public health, safety or other high-priority
service needs that cannot be met on an interim
basis through contract, overtime or temporary
staffing. In implementing the “chill,” the goal is
not just short-term savings, but preserving future
options if the problem turns-out to be ongoing.
Page 462 of 489
Fiscal Health Contingency Plan Page 3
Travel Chill. We will limit travel and training:
City Manager approval will be required for all
Travel Authorizations.
CIP Project Deferrals. The CIP Review
Committee will identify candidate projects for
possible deferral or deletion.
“One-Time” Operating Cost Review. The
Budget Review Team will identify special
projects in the operating budget for possible
deferral or deletion.
Fund Balance. The City will consider use of
fund balance below policy levels.
Other. The City will consider other short-term
expenditure curtailments as appropriate.
Assessment: Long-Term Problem
Implement “short-term” actions. (This follows
the first rule of holes: when you find yourself in
one, stop digging.)
Prepare long-term forecast to define the
problem.
Prepare revenue increase and expenditures
reduction options tailored to problem definition
via the forecast.
z It is likely to take 3-6 months to prepare
plans; and another 3-6 months to implement
them.
z This underscores the importance of strong
fund balance and short-term expenditure
reductions to create the time needed to
prepare and implement reasonable long-term
plans.
r Identify Options
In the long-term, there are only two basic budget-
balancing options:
Increase revenues.
Reduce expenditures (and related service levels).
In the short-term, use of fund balance is an option,
but not it is not a viable long-term solution: we can
only spend reserves once. An exception is the
strategic use of fund balance that reduces future year
operating costs or increases ongoing revenues.
Expenditure Reduction Options
Tough But Simple Fact: Meaningful ongoing
expenditure reductions require reductions in regular
staff costs, including public safety personnel:
.
85% of General Fund costs are operating.
80% of General Fund operating costs are for
staffing.
90% of General Fund staffing costs are for
regular staffing.
Over 50% of General Fund staffing costs are for
public safety.
General Strategy
Department Heads are responsible for crafting
operating expenditure reduction options that:
Are real and “doable.”
Reflect the least service impacts to the
community—no game-playing in proposing
least-likely reductions and non-starters.
Are ongoing.
Describe service impacts.
Are within the City’s ability to do
independently—no speculative reductions
contingent upon actions by others.
Can be implemented within three months after
adoption.
Are net of any related revenues from fees or
grants.
Maintain essential facilities, infrastructure and
equipment at reasonable levels—no deferred
maintenance posing as genuine cost reductions.
Page 463 of 489
Fiscal Health Contingency Plan Page 4
Reflect participation from throughout their
organization.
Option “Targets”
Targets for surfacing operating expenditure
reduction options will generally be:
Based on percentage reductions from current
operating budgets, less significant one-time
costs.
The same for all departments.
Targets are likely to exceed the “gap” identified in
forecast in order to surface an array of reasonable
policy choices based on priority considerations, and
not driven by arbitrary across-the-board decreases.
Stated simply, like making choices at a restaurant,
making priority-based decisions depends on having
more options on the menu than we plan on ordering.
Operating expenditure reductions are not likely to be
sole “budget-balancers,” but identifying their service
impact is critical to attracting support for new
revenues and other mitigation strategies.
Key Principles in Preparing Operating Expenditure
Reduction Options
Any service reductions will be balanced, and
ensure that highest priority services are retained.
Reductions will be based on service priorities,
not vacant positions: attrition is a helpful tactic,
but will not be the driving strategy in reducing
costs. On the other hand, one of the key
purposes of the “hiring chill” is to create
flexibility in making reductions based on
priorities while mitigating the need for lay-offs.
Our focus will be on retaining “front-line” core
services, and reducing services with the least
impact on the community at-large.
On the other hand, we need to preserve
“organizational” infrastructure, and ensure that
appropriate and necessary internal review
functions remain.
CIP Projects
The CIP Review Committee will be responsible
for identifying ongoing reduction opportunities.
Projects intended to maintain existing
infrastructure and facilities will generally have
higher priority over “new” facilities. Likely
exceptions include:
z Direct adverse impacts to public health and
safety.
z Outstanding contractual commitments.
z Significant outside resources or related one-
time revenues.
Revenues: Limited Options
The Budget Review Team, working with
representatives from the operating departments, will
have the lead responsibility for identifying revenue
options. However, it is likely that any new
significant revenues will require voter approval
under Proposition 218; and most likely, this election
cannot be held until the next regular municipal
election (November of even-numbered years).
There are two exceptions when revenue elections
can be held at any time:
Emergency declared by unanimous vote of the
Council.
Two-thirds voter approval for “earmarked”
revenues.
Nonetheless, there may be options for increased user
fees, fines or use of property. (On the other hand, if
these were easy to do, we would probably have
already done them!) Employees throughout the
organization will be encouraged to surface revenue-
raising options, with the recognition that expenditure
reductions are likely to play the play the leading role
in balancing the budget.
Significant New Revenues: Voter Support Required
Voter approval will require time for effective
preparation before a measure is placed on the
ballot.
Page 464 of 489
Fiscal Health Contingency Plan Page 5
Critical Success Factor: An effective,
community-based group that will work hard to
pass measure.
Legislative Advocacy
Depending on the reason for the adverse
circumstances (and especially if they are driven by
state or federal budget actions), the City will work
closely with its elected representatives and others
(such as the League of California Cities) in
mitigating service (and related cost) reductions.
Unlikely Long-Term Budget Balancers
Fund balance below policy levels. Using fund
is balance is a one-time course of action; it
cannot fix a structural imbalance.
Significant reductions in training. With fewer
employees, it will be even more important to
ensure that we have a highly-skilled, well-
trained work force.
Involvement and Participation
The City will actively solicit and encourage
participation by key stakeholders in the budget-
balancing process including:
Organization as a whole.
Employee associations.
Community groups.
This will require effective and ongoing
communication with them.
The Budget-Balancing Paradox. Balancing the
budget and closing the “forecast gap” from a strictly
numbers perspective is easy. However, after cutting
CIP projects, reducing staff, and negotiating and
implementing employee concessions, emerging from
the process with a vibrant, high-morale, high-
productivity organization is hard. Which leads to
the budget-balancing paradox: at a time when the
organization is at its nadir with downsizing, the
resulting smaller organization needs its employees to
be even more energized, fired-up and motivated to
perform.
In our experience, there is only one way to beat this
paradox: believing that the process used in
communicating with employees and meaningfully
engaging them in finding solutions matters. To use
Steven Coven’s metaphor, how we go about this
process is an opportunity to make deposits in our
credibility bank, not just withdrawals. It’s an
opportunity to both show our organizational
character and values, and to build them.
Employee Involvement
Department heads will encourage employee
participation and involvement in preparing
expenditure reduction options.
The City will strive to identify likely position
reductions resulting from this plan six months
before implementation in order to:
z Be straight forward with affected employees
about their employment outlook.
z Provide transfer opportunities.
z Allow affected employees a reasonable
amount of time to make other plans.
Key Value: Respect. There are downsides to this
approach, and many organizations consciously keep
force-reduction actions under wraps as long as
possible because of them. However, treating
employees with respect means informing them about
City plans that affect them as soon as possible.
It also means sharing the hard facts (and
consequences) in a straightforward and timely way,
even if this is painful at times for the organization.
Because ultimately, respect means believing
(contrary to Jack Nicholson's Marine Colonel Jessup
in A Few Good Men) that employees can handle the
truth.
Communication Strategies
The following identifies possible communication
strategies with employees and the community.
Employees
Ongoing employee briefings with City Manager,
Finance & IT Director and Department Heads.
Page 465 of 489
Fiscal Health Contingency Plan Page 6
Ongoing updates via voice mail or email.
Periodic “newsletters” and “rumor control
corner” on the Intranet
Ongoing briefings with employee association
representatives.
Special organization-wide briefings as
appropriate.
Community
Viewpoint articles in The Tribune and editorial
board briefings.
New releases.
Presentations to interested community groups.
Periodic “newsletters” via direct mail or utility
billing inserts.
Web site updates.
Community forums and workshops.
Possible Formation of Community Advisory Group
We may form an “ad hoc” advisory group depending
on the circumstances, with careful consideration of:
When should they become involved in the
process?
Who should be on it?
What’s their role?
s Finalize and Implement Action Plan
With advice from Department Heads and the
Budget Review Team, the City Manager is
responsible for preparing the recommended
action plan.
Council approval is required for implementation.
Finance will closely monitor results of the action
plan in achieving its goal, and will quickly
report any significant deviations to the City
Manager and Council.
SUMMARY
While the specifics of both the process will change
based on the circumstances, having a clear strategy
in place as the foundation for decision-making in
tough fiscal times that reflects our organizational
values has been a key factor in the City’s success in
preserving our long-term fiscal and our
organizational vitality.
Page 466 of 489
FY 2022-23 Mid Year Review
February 7, 2023
1
Recommendation
1.Receive and discuss the Mid-Year Budget report based on revised
projections for all major funds at the mid-point of the 2022-23 fiscal year;and
2.Adopt a Draft Resolution entitled,“A Resolution of the Council of the City of
San Luis Obispo,California,approving amendments to the adopted 2022-23
Budget Appropriations”and approve the one-time allocations as stated in the
Mid-year Budget Report;and
3.Provide direction on whether the one-time budget allocations from the 2021-
23 Financial Plan listed in Attachment A –Appendix B should be considered
as ongoing expense and included in the base budget for 2023-25.
2
2021-23 Financial Plan
2021-22
Budget
Adopted
2022-23
Supplement
Adopted
2022-23 Mid-
Year Review
1st Qtr
Review
3rd Qtr
Review
1st Qtr.
Review
3rd Qtr
Review4th Qtr.
Review
4th Qtr
Review
2023-25
Financial Plan
Prep
We are here:
6-month review
2021-22
Mid-Year
Review
3
Presentation Outline & Purpose
Budget update as of
December 31, 2022
Mid-year Expenditure Budget
Recommendations
Storm Response and the Fiscal
Health Contingency Plan
2023-25 Financial Planning
Review some of the one-time funded budget
allocations in current financial plan. Consider
ongoing impact.
Review the updated General Fund five-year
forecast and current assumptions.
Inform Council on what this means in
preparation for goal-setting on February 11.
Current Year
FY 2022-23
1
2
3
4
Drawing the connection between current year financials and financial planning.
4
Expenditure Budget Update as of December 31, 2022
•Expenditures on track; however, minimal salary savings despite vacancies
o Overtime in public safety departments and expect even more increases due
to storm
o City assumes 3% savings in forecast
5
FY 2022-23
Operating Expenditures by Type
(All Major Funds)FY 2021-22 Actual Budget Year -to-date
Actual
%
Expended
1 Salaries $ 45,463,937 $ 52,692,340 $ 23,722,785 45%
2 Retirement/Benefits $ 8,847,823 $ 11,749,653 $ 4,682,791 40%
3 Contract Services $ 23,865,486 $ 31,505,780 $ 22,771,908 72%
4 Utilities $ 4,000,350 $ 4,988,423 $ 2,567,636 51%
5 Other Operating Expenditures $ 7,610,585 $ 9,298,745 $ 5,280,616 57%
6 PERS Unfunded Liability/Retiree
Healthcare $ 25,594,321 $ 14,491,884 $ 13,532,075 93%
7 Grand Total $ 115,382,502 $ 124,726,824 $ 72,557,811 58%
Mid-year Revenue Projection Updates
FY 2022-23 Mid-Year Revenue Budget Changes
Fund Initial Budget Revised Budget Variance
General Fund $ 120,576,641 $ 124,826,187 $ 4,249,546
Gas Tax Fund $ 1,245,024 $ 1,305,634 $ 60,610
TDA -Bikeway Fund $ 45,000 $ 76,869 $ 31,869
Tourism Bid Fund $ 1,727,202 $ 2,122,800 $ 395,598
SB1 Road Repair 2017 $ 1,049,877 $ 1,019,914 $ (29,963)
Water Fund $ 26,036,569 $ 26,477,592 $ 441,023
Sewer Fund $ 19,645,382 $ 51,737,274 $ 32,091,892
Transit Fund $ 10,489,921 $ 15,560,414 $ 5,070,493
Total $ 180,815,616 $ 223,126,683 $ 42,311,068
•Major tax revenues exceeding projections
•Expected cooldown beginning in calendar year 2023
•Fee revenue on track
•Enterprise funds: increases due to changes in grant or debt revenue timing
6
Mid-Year Budget Allocations
General Fund $395,000
•Swim Center Boiler Replacement
•Additional Staffing Contingency
Water | Sewer $377,676 | $329,471
•Staffing Contingencies
CASp Fund ($70,823)
•Reallocation to CASp-eligible staff training and certifications
TDA Bikeways/Ped Fund $31,869
•True up of current year allocation
•Pedestrian Facility Improvement Project
Packet Pg. 380
Budget Report Pg. 8
7
Mid-Year Recommendations: CalPERs
Recommended FY 2022-23 CalPERs ADP
Fund Planned ADP (per
forecast)
One-time ADP (FY 2021-
22 Balance)
Total ADP for FY
2022-23
1 General Fund $ 2,000,000 $ 1,300,000 $ 3,300,000
2 Water $ 164,840 $ 107,146 $ 271,986
3 Sewer $ 169,419 $ 110,122 $ 279,542
4 Parking $ 61,003 $ 39,652 $ 100,654
5 Transit $ 12,555 $ 8,161 $ 20,716
6 Whale Rock $ 21,417 $ 13,921 $ 35,339
7 TBID $ 7,976 $ 5,184 $ 13,161
8 Total All Funds $ 2,437,211 $ 1,584,187 $ 4,021,398
•Payment of planned $2 million additional discretionary payment using FY 2021-22 fund balance
•Additional $1.3 million to help offset 6.1% investment losses experienced last year
Packet Pg. 381
Budget Report Pg. 9
8
•Projects under design and construction award
•Anticipate busy spring with almost all projects proceeding
(far enough along that storm recovery not negatively
impacting progress)
Year 2 of CIP
•Projects continue to see price escalations above Engineer's Estimates
•Staff may recommend reappropriation of funds between projects should the need arise in order to award high priority projects
Cost Escalations
Mid-Year CIP Update Packet Pg. 433
Budget Report Pg. 61
9
10
Completed in Q2:
Housing and Homelessness: Additional Housing Element Program Implementation (HE 2.16, 2.18, 3.10, 4.7 & 4.8)
Housing and Homelessness: Inclusionary Housing Ordinance (HE programs 2.13 & 4.6)
Major City Goals Packet Pg. 435
Budget Report Pg. 63
65
39
5
21
7
54
5
48
1
1
4
4
7
0
20
40
60
80
100
120
Admin/Internal
Services
CDD Fire P&R Police Public Works Utilities
On Track or Completed Delayed
75% On track
or completed
25% Delayed
Overall Status
Major City Goal Status Update: All Tasks by Lead Department
Storm Response and Activation of the Fiscal Health
Contingency Plan (FHCP)
Estimated over $9 million damage to capital and operating
Expect partial reimbursement from FEMA but timing and amount
unknown
Need to monitor cash flow and utilize reserves for time being
City Manager activated FHCP on January 27, 2023
•Recommended to be triggered in cases of natural disasters
City is in good financial standing. The FHCP will help us hedge against
variables outside our control
Not a “one size fits all” approach
Attachment 7a. C -Packet Pg. 461
11
One-time Expenditures in 2021-23
•Over $6 million of one-time money was allocated in the 2021-23 Financial Plan (over two
years)
•Some items funded on a one-time basis due to economic uncertainty
•Some items were truly one-time in nature (one-time studies, minor equipment purchases)
•Appendix B includes a list of essential or critical items that support operations and Major City
Goal objectives
•Programmed $1.8 million into the forecast as a placeholder
Packet Pg. 455
Budget Report Pg. 83
12
The General Fund Forecast Considerations
•Staffing assumptions are in line with negotiated agreements and labor relations objectives
•A 3% inflator was used for non-staffing operating budget increases
•Capital Budget was increased by about 19% to help offset CCI increases
•One-time operating budget allocations have been removed
•Storm costs will be paid for using reserves and forecast assumes maximum reimbursement (93.75%)
•Assumed State will provide reimbursement (CDAA) in addition to FEMA
•Unreimbursed costs will be paid for using CIP and operating budget
•Any revenue over expenditures at year end will replenish the reserve to the extent possible
•Replenishment of reserve could take longer than two years
Packet Pg. 377
Budget Report Pg. 5
13
(C)
Revised 2022-23
(D)
2023-24
(E)
2024-25
(F)
2025-26
(G)
2026-27
23 Total Revenue $108,535 $112,120 $114,881 $117,866 $120,957
21 Storm Reimbursement Estimate (93.75%)$4,208 $4,208
32 Total Expenditure $105,263 $111,925 $113,476 $116,375 $119,088
34 Beginning Fund Balance $37,309 $34,082 $31,985 $35,598 $35,089
35 CalPERS Downpayments $(2,000)$(2,000)$(2,000)$(2,000)$(2,000)
36 Revenue Over/(Under) Expenses $1,272 $2,403 $3,613 $(508)$(131)
39 Storm Expenditures -ESTIMATE $(4,500)$(4,500)
40 Ending Fund Balance $34,082 $31,985 $35,598 $35,089 $34,958
41 Operating Reserve $9,227 $8,694 $13,821 $14,162 $14,527
42 Revenue Stabilization Reserve $2,000 $2,000 $2,000 $2,000 $2,000
43 115 Pension Trust Fund $3,000 $3,000 $3,000 $3,000 $3,000
44 Restricted based on Audit $16,010 $15,000 $15,000 $15,000 $15,000
45 Undesignated Fund Balance $3,844 $3,292 $1,777 $927 $431
Reserve % (policy is 20%)13%13%20%20%20%
Storm Reimbursements
Drop in reserves to cover
unanticipated storm costs
Utilization of Reserve for Storm Costs
Packet Pg. 378
Budget Report Pg. 6
14The General Fund Forecast
(C)
Revised 2022-23
(D)
2023-24
(E)
2024-25
(F)
2025-26
(G)
2026-27
23 Total Revenue $108,535 $112,120 $114,881 $117,866 $120,957
21 Storm Reimbursement Estimate (93.75%)$4,208 $4,208
32 Total Expenditure $105,263 $111,925 $113,476 $116,375 $119,088
34 Beginning Fund Balance $37,309 $34,082 $31,985 $35,598 $35,089
35 CalPERS Downpayments $(2,000)$(2,000)$(2,000)$(2,000)$(2,000)
36 Revenue Over/(Under) Expenses $1,272 $2,403 $3,613 $(508)$(131)
39 Storm Expenditures -ESTIMATE $(4,500)$(4,500)
40 Ending Fund Balance $34,082 $31,985 $35,598 $35,089 $34,958
41 Operating Reserve $13,071 $11,985 $13,821 $14,162 $14,527
42 Revenue Stabilization Reserve $2,000 $2,000 $2,000 $2,000 $2,000
43 115 Pension Trust Fund $3,000 $3,000 $3,000 $3,000 $3,000
44 Restricted based on Audit $16,010 $15,000 $15,000 $15,000 $15,000
45 Undesignated Fund Balance $0 $0 $1,777 $927 $431
Reserve % (policy is 20%)19%18%20%20%20%
Utilize unassigned fund balance (due to revenue
over expenditures) until 2024-25 to replenish
reserve
Excess revenue over
expenditures due to 2nd
reimbursement Temporarily Replenish Reserve with Unassigned Fund Balance
Packet Pg. 378
Budget Report Pg. 6 15
What does this mean for 2023-25 Financial
Planning?
16
Next Step: Council Goal-Setting Workshop
Saturday, February 11, 2023 9:00 AM to 2:00 PM
Many moving parts and numbers will change
Pressure on both the operating and capital sides
Information about storm related costs and reimbursement will continue to evolve
Balanced budget and multiple reserves
Recommendation
1.Receive and discuss the Mid-Year Budget report based on revised
projections for all major funds at the mid-point of the 2022-23 fiscal year;and
2.Adopt a Draft Resolution entitled,“A Resolution of the Council of the City of
San Luis Obispo,California,approving amendments to the adopted 2022-23
Budget Appropriations”and approve the one-time allocations as stated in the
Mid-year Budget Report;and
3.Provide direction on whether the one-time budget allocations from the 2021-
23 Financial Plan listed in Attachment A –Appendix B should be considered
as ongoing expense and included in the base budget for 2023-25.
17