HomeMy WebLinkAbout11-20-2025 REOC Agenda Packet
Revenue Enhancement Oversight Commission
AGENDA
Thursday, November 20, 2025, 5:00 p.m.
City Hall, 990 Palm Street, San Luis Obispo
The Revenue Enhancement Oversight Commission holds in-person meetings. Zoom participation will
not be supported. Attendees of City Council or Advisory Body meetings are eligible to receive one
hour of complimentary parking; restrictions apply, visit Parking for Public Meetings for more details.
INSTRUCTIONS FOR PUBLIC COMMENT:
Public Comment prior to the meeting (must be received 3 hours in advance of the meeting):
Mail - Delivered by the U.S. Postal Service. Address letters to the City Clerk's Office at 990
Palm Street, San Luis Obispo, California, 93401.
Email - Submit Public Comments via email to advisorybodies@slocity.org. In the body of your
email, please include the date of the meeting and the item number (if applicable). Emails will not
be read aloud during the meeting.
Voicemail - Call (805) 781-7164 and leave a voicemail. Please state and spell your name, the
agenda item number you are calling about, and leave your comment. Verbal comments must be
limited to 3 minutes. Voicemails will not be played during the meeting.
*All correspondence will be archived and distributed to members, however, submissions received
after the deadline may not be processed until the following day.
Public Comment during the meeting:
Meetings are held in-person. To provide public comment during the meeting, you must be
present at the meeting location.
Electronic Visual Aid Presentation. To conform with the City's Network Access and Use Policy,
Chapter 1.3.8 of the Council Policies & Procedures Manual, members of the public who desire
to utilize electronic visual aids to supplement their oral presentation must provide display-ready
material to the City Clerk by 12:00 p.m. on the day of the meeting. Contact the City Clerk's
Office at cityclerk@slocity.org or (805) 781-7114.
Pages
1.CALL TO ORDER
Chair Bozzano will call the Regular Meeting of the Revenue Enhancement
Oversight Commission to order.
2.PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
The public is encouraged to submit comments on any subject within the
jurisdiction of the Revenue Enhancement Oversight Commission that does not
appear on this agenda. Although the Commission will not take action on items
presented during the Public Comment Period, the Chair may direct staff to place
an item on a future agenda for discussion.
3.CONSENT
Matters appearing on the Consent Calendar are expected to be non-
controversial and will be acted upon at one time. A member of the public may
request the Revenue Enhancement Oversight Commission to pull an item for
discussion. The public may comment on any and all items on the Consent
Agenda within the three-minute time limit.
3.a CONSIDERATION OF MINUTES - MAY 8, 2025 REVENUE
ENHANCEMENT OVERSIGHT COMMISSION MINUTES
5
Recommendation:
To approve the Revenue Enhancement Oversight Commission Minutes
of May 8, 2025.
4.BUSINESS ITEMS
4.a OFFICER ELECTIONS
Recommendation:
1. Elect a Chairperson and Vice-Chairperson to serve one year terms
4.b FY 2024-25 Revenue Review 7
Recommendation:
1. Receive and file a report on revenue performance through Fiscal
Year 2024-25
4.c FY 2023-24 Annual Community Report 9
Recommendation:
1. Direct staff to publish the FY 2023-24 Annual Community Report and
Report in Brief
5.STAFF AND COMMISSIONER ANNOUNCEMENTS
5.a STAFF UPDATES
5.b COMMISSIONER UPDATES
6.ADJOURNMENT
The next Regular Meeting of the Revenue Enhancement Oversight Commission
will be scheduled in Spring, 2026 in the Council Hearing Room at City Hall, 990
Palm Street, San Luis Obispo.
LISTENING ASSISTIVE DEVICES are available -- see the Clerk
The City of San Luis Obispo wishes to make all of its public meetings accessible
to the public. Upon request, this agenda will be made available in appropriate
alternative formats to persons with disabilities. Any person with a disability who
requires a modification or accommodation in order to participate in a meeting
should direct such request to the City Clerk’s Office at (805) 781-7114 at least
48 hours before the meeting, if possible. Telecommunications Device for the
Deaf (805) 781-7410.
Agenda related writings or documents provided to the Revenue Enhancement
Oversight Commission are available for public inspection on the City’s website,
under the Public Meeting Agendas web page:
https://www.slocity.org/government/mayor-and-city-council/agendas-and-
minutes. Meeting video recordings can be found on the City’s website:
http://opengov.slocity.org/WebLink/Browse.aspx?id=61028&dbid=0&repo=CityCl
erk
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1
Revenue Enhancement Oversight Commission Minutes
May 8, 2025, 5:00 p.m.
City Hall, 990 Palm Street, San Luis Obispo
REOC Commissioners Present: Chair Bozzano, Commissioner Gardner, Commissioner
Johnson
Absent: Commissioner Skapinsky, Commissioner McCarthy
_____________________________________________________________________
1. CALL TO ORDER
A Regular Meeting of the San Luis Obispo Revenue Enhancement Oversight
Commission was called to order on May 8, 2025 at 5:00 p.m. at City Hall, 990
Palm Street, San Luis Obispo, by Chair Bozzano.
2. PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
No Public Comment
3. CONSENT
3a. CONSIDERATION OF MINUTES – MARCH 20, 2025 REVENUE
ENHANCEMENT OVERSIGHT COMMISSION MINUTES
Motioned By Commissioner Gardner
Seconded By Commissioner Johnson
To approve the Revenue Enhancement Oversight Commission Minutes of March
20, 2025.
Ayes (3): Chair Bozzano, Commissioner Gardner, Commissioner Johnson
4. BUSINESS ITEMS
4a. 2025-27 FINANCIAL PLAN RECOMMENDATIONS
Motioned By Commissioner Gardner
Seconded By Commissioner Johnson
Page 5 of 26
2
Ayes (3): Chair Bozzano, Commissioner Gardner, Commissioner Johnson
To recommend the staff proposed budget allocations to the City Council.
5. STAFF AND COMMISSIONER UPDATES
5.a STAFF UPDATES
No updates
5.b COMMISSIONER UPDATES
No updates
6. Adjournment
The meeting was adjourned at 6:15 p.m. The next Regular Meeting of the
Revenue Enhancement Oversight Commission will be scheduled November 20th,
2025 at 5:00 p.m. in the Council Hearing Room at City Hall, 990 Palm Street,
San Luis Obispo
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Local Revenue Measure Performance Review
Fiscal Year 2024-25
Introduction
The Local Revenue Measure (LRM) is a transactions and use tax approved at its current rate by voters in
2020 and in place since April 2021. As a tax on consumption, its performance responds to changes in
economic conditions and can be cyclical. This report details the performance of the Local Revenue
Measure since the first full year it was in place, Fiscal Year 2021-22. The report also provides a brief
summary of fund balance and projections for the Local Revenue Measure fund.
FY 2024-25 Performance vs Budget
The table below provides an overview of actual LRM revenue compared to budget and prior year actuals:
This cyclical revenue stream was expected to rebound after several years of tepid growth. Shortly after
supplemental budget adoption for FY 2024-25, these expectations were revised downwards. In February
2025, the City’s sales tax consultants projected that this line item would miss budget by $1.3M. While the
FY 2024-25 result is lower than budget, it is also not as low as previously feared, and, at +1.1% higher than
the prior year, indicates that the local economy is still growing on a nominal basis.
The table below visualizes recent sales tax trends and the FY 2025-26 budget:
FY 2023-24 FY 2024-25 FY 2025-26
Local Revenue Measure Actual Budget Actual Variance %Budget
Revenue 30,597,288 31,855,000 30,926,285 (928,715) -3%31,572,000
YoY Change 1%4%1%--2%
$29.2M $30.4M $30.6M $30.9M $31.6M
$0.0M
$5.0M
$10.0M
$15.0M
$20.0M
$25.0M
$30.0M
$35.0M
FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26B
LRM Trend
Page 7 of 26
The LRM remains under pressure from macroeconomic conditions and even the modest growth
forecasted in the 2025-27 Financial Plan may prove elusive. The FY 2025-26 budget assumes year over
year growth of +2%, below the inflationary rate and in line with recent trends. However, the City’s
consultants have advised that consumer discretionary spending is under pressure and the City’s sales tax
revenue may underperform expectations once again.
Fund Balance
The table below details the balance of the Local Revenue Measure Fund as of June 30, 2025:
The LRM fund ended FY 2023-24 with a balance of approximately $1.8M. Because staff became aware of
a potential revenue shortfall in FY 2024-25, that balance was not recommended for appropriation. After
the revenue shortfall of $0.9M in FY 2024-25, a fund balance of $0.8M remains. Once again, staff
recommend that this balance be retained to offset the potential revenue shortfall rather than
appropriated for expenditures.
Local Revenue Measure Fund Balance
Beginning Balance:1,776,828
+Favorable / (Unfavorable) Revenue Performance:(928,715)
Ending Balance 848,113
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PROJECT SPOTLIGHTS
PAGE 9
Learn about the City's milestone projects that included
the North Broad Street Park, Cheng Park revitalization,
curb ramp installations, and more.
HOW WAS IT SPENT?
PAGE 6
Read about how Local Revenue Measure funds
were spent in FY 2023-24
LOCAL REVENUE MEASURE
ANNUAL COMMUNITY REPORT
Fiscal Year 2023-24
CITY OF SAN LUIS OBISPO 1Page 9 of 26
The Local Revenue Measure funds annual pavings projects which
also include improvements to pedestrian and bicycling infrastructure.
WHAT IS THE LOCAL REVENUE MEASURE?2
The Local Revenue Measure is a 1.5 percent local sales tax
approved by City voters in November 2020 and went into effect on
April 1, 2021. It replaced the previous 0.5 percent local sales tax
approved by City voters in November 2006. It helps protect and
maintain operating services and public infrastructure identified by
the community such as public safety, creek protection,
addressing homelessness, keeping public areas safe and clean,
retaining local businesses, youth/senior services, streets, open
space/natural areas and other vital services and facilities.
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3
The Local Revenue Measure helps fund road
work that makes city streets and pedestrian
crossings safer for the community.
WHAT IS THE LOCAL REVENUE MEASURE?
OPERATING USES: $7.0M I 21%
To fund positions that provide community services
Examples of operating expenditures include funding for
positions such as police officers, open space rangers, and
firefighters.
CAPITAL USES: $26.7M I 79%
To fund construction and investment in equipment
Examples of capital expenditures include the North Broad
Street Park construction and the Annual Paving Project
Local Revenue Measure expenditures fall into two categories:
operating programs and capital programs
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LOCAL REVENUE MEASURE BALLOT MEASURE
(MEASURE G20)4
The Local Revenue Measure helps fund park
improvements to be enjoyed by all.
"To protect the City of San Luis Obispo’s financial stability; maintain
fire/community safety, health emergency/disaster preparedness;
protect creeks from pollution; address homelessness; keep public
areas clean/ safe; retain local businesses; maintain youth/senior
services, streets, open space/natural areas, and other general
services, by extending voter- approved funding at a 1.5¢ (1.5%)
rate, providing approximately $21,600,000 annually until ended by
voters; requiring audits/ all funds used locally."
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WHERE YOUR SALES TAX DOLLARS GO 5
The total sales tax rate of 8.75% in San Luis Obispo is shared between the City (2.5%), the State (6%), and the County
Transportation Fund (0.25%). The Local Revenue Measure ensures that your sales tax dollars are spent locally.
Learn more at https://cdtfa.ca.gov/industry/local-and-district-retailer-taxes/local-tax.htm Page 13 of 26
$0.8M
2%
$0.4M
Economic
Development
1%
$5.5M
Other Vital Services and
Capital Projects
16%
$1.6M
Open Space
5%
$3.9M
Creeks and Flood
Protection
11%
$1.6M
Youth & Senior Services
and Recreation Facilities
5%
$0.8M
2%
$6.9M
Community Safety
20%36%
Street Maintenance and
Transportation*
$12.1M
LOCAL REVENUE MEASURE USES IN 2023-24
Local Revenue Measure funds were used according to the following priorities:
The Local Revenue Measure funded important
projects and operations citywide
6
*Projects listed in the "Street Maintenance and Transportation" category also include significant
bicycle and pedestrian improvements.
Safe and Clean Public AreasAddress
Homelessness
$0.5M
Financial Stability
2%
Page 14 of 26
PROJECT SPOTLIGHT 7
Park features include shaded picnic tables,
climbing structures, and community planters
North Broad Street Park
In August 2024, the City completed the North Broad Street Park, which provided recreational opportunities for a neighborhood with
limited access to parks. The park was built on the site of a community garden and maintains garden beds for community members.
Other park features include bike racks, a playground, a walking path with lighitng, picnic tables, a hydration station with pet fountain,
a shade structure and covered seating area, and a large grassy field.
Before:
After:
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SERVICE SPOTLIGHT 8
The City partners with County Behavioral Health, social
service agencies, and local non-profit organizations to connect
the City’s most vulnerable residents to resources and services.
Homelessness Response
Homelessness Response remains a top community identified
priority for the City. While the City does not provide direct services
to individuals, the Local Revenue Measure funds positions on the
Community Action Team (CAT) and Mobile Crisis Unit (MCU)
whose goal is to connect individuals experiencing homelessness
with service providers and permanent housing opportunities.
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PLANNED AND RECENTLY COMPLETED LOCAL
REVENUE MEASURE USES
9
The Local Revenue Measure is a critical revenue source for community investment. The City is committed to completing projects that maintain
infrastructure and support the delivery of essential services to residents and businesses.
Ongoing
Paving Projects
Ongoing
Curb Ramps
March 2024
Cheng Park
Ongoing
Mission Plaza Concept
Plan
August 2024
North Broad Street Park
November 2023
Creek Bank Stabilization
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Add a subheading
LOCAL REVENUE MEASURE SUMMARY
FOR THE FISCAL YEAR ENDED JUNE 30, 2024 10
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11
LOCAL REVENUE MEASURE SUMMARY
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
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12
LOCAL REVENUE MEASURE SUMMARY
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
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13
LOCAL REVENUE MEASURE SUMMARY
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
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14
LOCAL REVENUE MEASURE SUMMARY
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
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15
LOCAL REVENUE MEASURE SUMMARY
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
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The Local Revenue Measure - also known as Measure
G-20 is a one-and-a-half percent (1.5%) local sales tax
approved by City voters in November 2020 to replace
an existing one-half-percent (0.5%) local sales tax. It
supports and maintains essential services and
facilities, such as open space preservation, public
safety, street maintenance including multi-modal
transportation improvements, flood protection, senior
programs, and other services and capital improvement
projects vital to a thriving community.
The adopted community spending priorities help guide
the Citizens' Revenue Enhancement Oversight
Commission (REOC) when making recommendations
to the City Council about Local Revenue Measure
uses. The Council uses the REOC's input, and
additional public feedback, to prioritize use of the Local
Revenue Measure funding as part of the City's two
year financial plan process.
WHAT IS THE LOCAL REVENUE MEASURE?
ANNUAL COMMUNITY REPORT IN BRIEF
Fiscal Year 2023-24
This report in brief highlights the revenue and uses of
the Local Revenue Measure in Fiscal Year 2023-24.
The REOC will continue its oversight role on the use of
the Local Revenue Measure to support accountability,
transparency, and public engagement efforts. The
Local Revenue Measure continues to be a vital
resource to deliver the community's highest priorities
and support San Luis Obispo's economic stability.
FY 2023-24 Local Revenue Measure funds were used on the following Council-adopted priorities:
Addressing Homelessness
Cheng Park
Addressing housing and homelessness in our community is a Council adopted Major City Goal. The
City collaborates with local non-profit partners, non-governmental agencies, the county, the state, and
federal governments to advocate for increased funding and implementation of comprehensive and
effective strategies to prevent and reduce homelessness. The Local Revenue Measure is an
important funding source for the City's homelessness response efforts.
One of the major uses of Local Revenue Measure is for the maintenance of City infrastructure,
including roads, parks, and public facilities. The Local Revenue Measure also helps fund the
vehicles and equipment necessary to maintain the infrastructure. All City streets are swept on a
regular basis. Visit the City's interactive website to see the street sweeping schedule:
https://www.slocity.org/living/maps/street-sweeping
Cheng Park was designed in 2005 and transformed an empty City lot at the corner of Marsh and Santa
Rosa in the City’s downtown. At nearly 20 years old, the park was in need of revitalization and the
Local Revenue Measure was used to fund restoration, replacement, or repair of park features including
landscaping, irrigation, and the pond. The project also added solar lighting and ADA accessible items
like handrails in the park’s gazebo.
SPENDING HIGHLIGHTS
Asset Maintenance
20%
STREET MAINTENANCE AND TRANSPORTATION* - $12.1M
16%
36%5%
11%
5%
*Projects listed in the "Street Maintenance and Transportation" category also
include significant bicycle and pedestrian improvements.
COMMUNITY SAFETY - $6.9M
OTHER VITAL SERVICES AND CAPITAL PROJECTS - $5.5M
CREEKS AND FLOOD PROTECTION - $3.9M
YOUTH/SENIOR SERVICES AND RECREATION FACILITIES - $1.6M
OPEN SPACE - $1.6M
2%
ADDRESS HOMELESSNESS - $0.8M
2%
2%
1%
SAFE AND CLEAN PUBLIC AREAS - $0.8M
FINANCIAL STABILITY - $0.5M
ECONOMIC DEVELOPMENT - $0.4M
Page 25 of 26
Streets Resurfacing
and Reconstruction
The Local Revenue Measure helps fund the annual
resurfacing and reconstruction of local streets. Specific
roadway improvements for FY 2023-24 included the
2023 Arterials Paving Projects on Orcutt Road and
Monterey Street, featuring improved curb ramps and
pedestrian crossing features.
REVENUE
Local sales tax revenue totaled $30.6 million in FY 2023-24, accounting for
approximately one fourth of general fund revenue. The Local Revenue Measure has
generated nearly $200 million since its original adoption in November 2006.
The Local Revenue Measure funds over 50 full-time positions and is the primary funding source
for the vehicles and equipment used to keep the City safe and clean.
$30.6M
PROJECT SPOTLIGHT
Operating Uses ($7.0M // 21%) – To fund positions that provide community services
Examples of these costs include funding for positions such as police officers, open space rangers and
firefighters. The Local Revenue Measure also funds critical supplies, materials, and other operating costs.
Capital Uses ($26.7M // 79%) – To fund construction and investment in infrastructure & equipment
Examples of capital expenditures include construction of projects like the North Broad Street Park as well as
the maintenance of City road and park infrastructure.
North Broad Street Park
In August 2024, the City completed the North Broad Street Park. This location was previously home to a community garden in a neighborhood
with no parks nearby. Thanks to funding from the Local Revenue Measure, the site now includes bike racks, a playground, a walking path with
lighting, picnic tables, a hydration station with pet fountain, shade structure and covered seating area, and a large grassy field.
The new park also preserves the original use with 12 community garden beds, including six ADA compliant accessible beds.
CITY OF SAN LUIS OBISPO // View the full report at: https://www.slocity.org/government/open-government/city-budget/local-revenue-measure
USES OF FUNDS
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