HomeMy WebLinkAbout01-13-2026 Council Agenda Packet
City Council
AGENDA
Tuesday, January 13, 2026, 5:30 p.m.
Council Chambers, 990 Palm Street, San Luis Obispo
COUNCIL MEMBER SHORESMAN WILL PARTICIPATE REMOTELY FROM DOUBLETREE BY
HILTON SAN DIEGO BAYSIDE: 4875 N. HARBOR DR., SAN DIEGO, CA 92106
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City’s website under the Public Meeting Agendas web page. 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 emailcouncil@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 councilmembers, 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.CLOSED SESSION
1.a CALL TO ORDER (4:45 PM to 5:30 PM)
Mayor Erica A. Stewart will call the Closed Session of the San Luis
Obispo City Council to order at 5:00 p.m. in the Council Hearing Room
at City Hall, 990 Palm Street, San Luis Obispo.
1.b CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code § 54956.8
Property: APN 073-321-006
Agency Negotiators: Robert Hill, Greg Hermann,
Freddy Otte, Christine Dietrick,
Whitney McDonald
Negotiating Parties: Sharon Pollard
Under Negotiation: Price and terms of payment.
1.c ADJOURNMENT
The City Council will hold a Rescheduled Regular Meeting on January
13, 2026 in the Council Chambers at City Hall, 990 Palm Street, San
Luis Obispo.
2.CALL TO ORDER
Mayor Erica A. Stewart will call the Regular Meeting of the San Luis Obispo City
Council to order.
3.PLEDGE OF ALLEGIANCE
Vice Mayor Emily Francis will lead the Council in the Pledge of Allegiance.
4.PRESENTATIONS
4.a NATIONAL MENTORING MONTH - BIG BROTHERS BIG SISTERS OF
SAN LUIS OBISPO COUNTY
Mayor Stewart will present a proclamation declaring January 2026 as
National Mentoring Month.
4.b NATIONAL ANTI HUMAN TRAFFICKING PREVENTION MONTH
Mayor Stewart will present a proclamation declaring January 2026 as
National Anti Human Trafficking Month.
4.c CITY MANAGER REPORT
Receive a brief report from City Manager Whitney McDonald.
5.PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA
Not to exceed 15 minutes. The Council welcomes your input. State law does not
allow the Council to discuss or take action on issues not on the agenda, except
that members of the Council or staff may briefly respond to statements made or
questions posed by persons exercising their public testimony rights (Gov. Code
sec. 54954.2). Staff may be asked to follow up on such items.
6.CONSENT AGENDA
Not to exceed 15 minutes. 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 Council to pull an item for discussion. Pulled items
shall be heard at the close of the Consent Agenda unless a majority of the
Council chooses another time. The public may comment on any and all items on
the Consent Agenda within the three-minute time limit.
Recommendation:
To approve Consent Calendar Items 6a to 6j.
6.a WAIVE READING IN FULL OF ALL RESOLUTIONS AND
ORDINANCES
Recommendation:
Waive reading of all resolutions and ordinances as appropriate.
6.b MINUTES REVIEW - DECEMBER 2, 2025 AND DECEMBER 15, 2025
COUNCIL MINUTES
13
Recommendation:
Approve the minutes of the City Council meeting held on December 2,
2025 and December 15, 2025.
6.c COUNCIL LIAISON SUBCOMMITTEE ASSIGNMENTS FOR 2026 25
Recommendation:
Approve the Council Liaison Subcommittee assignments for the 2026
calendar year.
6.d AUTHORIZE THE TRANSFER OF CAPITAL AND OPERATING
FUNDING FOR THE PURCHASE OF AN AUTONOMOUS FIELD
STRIPER
29
Recommendation:
Adopt a draft resolution entitled “A Resolution of the City Council of the
City of San Luis Obispo, California, Authorizing the Transfer of Unused
Fleet Capital Funding and Supplemental Salary Savings to the Parks
Major Maintenance Capital Account for the Purchase of an Autonomous
Sports Field Striper” for the Damon Garcia Sports Complex:
Approve the transfer of $38,000 in available fleet replacement
funding from the Fleet Replacement Project (2000520-02.12),
originally allocated for the replacement of fleet asset #0849, to
the Parks Major Maintenance Capital Account (2001010); and
1.
Approve the transfer of $3,640 in Parks Maintenance salary
savings to the Parks Major Maintenance Capital Account
(2001010).
2.
6.e APPROVE RELEASE OF A REQUEST FOR QUALIFICATIONS FOR
AUDIO-VISUAL SERVICES
43
Recommendation:
Approve the release of a Request for Qualifications (RFQ) to
establish a list of prequalified Audio-Visual (AV) Service
vendors following the expiration of the 45-day notice period in
compliance with AB 339 (no earlier than February 5, 2026); and
1.
Authorize the Deputy City Manager to execute professional
service agreements with the selected consultants; and
2.
Authorize the Finance Director to execute and amend purchase
orders for individual professional service agreements in an
amount not-to-exceed the authorized budget.
3.
6.f AUTHORIZE THE FIRE DEPARTMENT TO ACCEPT THE PRODUCT
OF A FIRE SAFE COUNCIL GRANT, WHICH IS PREPARATION OF A
ONE-TIME PROFESSIONAL SERVICE AGREEMENT FOR
EVACUATION DATA DEVELOPMENT AND INITIAL MODELING
SERVICES FOR CITYWIDE EVACUATION PLANNING
77
Recommendation:
Authorize the Fire Department to accept the award from the San Luis
Obispo County Fire Safe Council for a one-time professional service
agreement for evacuation data development and initial modelling
services for Citywide evacuation planning with a value of $30,000.
6.g SECOND READING AND ADOPTION OF ORDINANCE NO. 1753
(2025 SERIES) REPEALING AND REPLACING CHAPTER 14.01 OF
THE MUNICIPAL CODE (HISTORIC PRESERVATION ORDINANCE)
TO INCLUDE RECOMMENDED UPDATES AND AMENDMENTS
81
Recommendation:
Adopt Ordinance No. 1753 (2025 Series) entitled, “An Ordinance of the
City Council of the City of San Luis Obispo, California, repealing
Chapter 14.01 (Historic Preservation Ordinance) of the Municipal Code
in its entirety and introducing and adopting a replacement Chapter 14.01
to include recommended updates and amendments as reflected in the
attached Exhibit A (CODE-0758-2025)”
6.h AWARD CONSTRUCTION CONTRACT FOR SOUTH STREET AND
KING COURT CROSSING PROJECT, SPECIFICATION NO. 2001059
113
Recommendation:
Award a construction contract for the South Street and King
Court Crossing Project to JJ Fisher Construction Inc. in the
amount of $632,816; and,
1.
Authorize the City Engineer to approve Contract Change
Orders up to the available project budget, including any
amendments authorized by the City Manager; and,
2.
Authorize the transfer of $150,000 from the Roadway Sealing
2024 Project (Account 2000615) to the South Street and King
Court Crossing Project (Account 2001059); and,
3.
Approve a purchase from AM Signal, not to exceed $204,600
total, for the purchase and installation of Emergency Vehicle
Preemption (EVP) equipment for San Luis Obispo Fire and
Police Department vehicles.
4.
6.i APPROVAL OF A REIMBURSEMENT AGREEMENT WITH THE
COUNTY OF SAN LUIS OBIPSO FOR THE SALINAS DAM
FEASIBILITY STUDY
127
Recommendation:
Adopt a resolution entitled “A Resolution of the City Council of
San Luis Obispo, California, Approving a Reimbursement
Agreement with the San Luis Obispo County Flood Control and
Water Conservation District to Support the Salinas Dam
Feasibility Study;” and
1.
Authorize the City Manager to execute the Reimbursement
Agreement and related documents; and
2.
Find the action exempt from the California Environmental
Quality Act.
3.
6.j APPROVE A MEMORANDUM OF UNDERSTANDING WITH SLOCOG
AND WITH THE CITY OF SANTA MARIA FOR PILOT EXPRESS
TRANSIT SERVICES
151
Recommendation:
Authorize the Mayor to execute a Memorandum of Understanding with
the San Luis Obispo Council of Governments and with the City of Santa
Maria for Pilot Express Transit Services.
7.PUBLIC HEARING AND BUSINESS ITEMS
7.a ACCEPTANCE OF THE ANNUAL COMPREHENSIVE FINANCIAL
REPORT, FEDERAL SINGLE AUDIT REPORT AND
TRANSPORTATION DEVELOPMENT ACT REPORT FOR FISCAL
YEAR 2024-25 (30 MINUTES)
187
Recommendation:
Review and accept the Annual Comprehensive Financial Report, the
Federal Single Audit Report and Transportation Development Act
Report for Fiscal Year 2024-25.
7.b INTRODUCE AN ORDINANCE ESTABLISHING CITYWIDE SINGLE
VOTE FOR COUNCIL ELECTIONS IN 2026 AND SUBSEQUENT
ELECTIONS (60 MINUTES)
503
Recommendation:
Adopt an ordinance adding chapter 2.38, entitled “Citywide Single Vote
Method of Electing City Councilmembers” to the San Luis Obispo
Municipal Code, implementing a new method for elections of City
Councilmembers and adopting regulations providing for the
administration of City Council elections by Citywide Single Vote
beginning in November 2026
7.c 2026 COUNCIL COMPENSATION COMMITTEE
RECOMMENDATIONS (60 MINUTES)
513
Recommendation:
As recommended by the Council Compensation Committee:
Adopt a Resolution entitled “A Resolution of the City Council of
the City of San Luis Obispo, California, setting new salaries for
the Mayor and Council Members and reaffirming compensation
for Planning Commission and Architectural Review Commission
and amending Council’s Policies and Procedures,” increasing
the monthly compensation for the Mayor from $2,923 to $4,169
per month and Council Member from $2,319 to $2,780 per
month, and provide a $160 per month stipend for any Council
Member or Mayor who is appointed to a statewide board or
policy committee for the duration of their appointed term,
effective the first full pay period in January 2027; and renaming
Professional Development funding to Reimbursable
Professional Expenses funding; and
1.
Increase the Reimbursable Professional Expenses funding
amount for Mayor from $3,600 to $4,400 annually and for
Council Members from $2,700 to $3,300 annually. Also,
automatically roll over any remaining Reimbursable
Professional Expenses funds from the first year of a Financial
2.
Plan to the second year; and
Establish an annual $1,000 reimbursement allowance for any
Council Member or Mayor who is appointed to a statewide
board or policy committee for travel expenses related to
statewide meetings; and
3.
Direct staff to explore the feasibility of an "opt-in" pilot-program
to provide $25 per meeting for all City Advisory Bodies, not
including the Architectural Review Commission (ARC) and
Planning Commission (PC), with a cap of three meetings a
month, totaling $75 per month. The ARC and PC compensation
would remain at the same amount of $86 per meeting with a
cap of $344 per month.
4.
8.LIAISON REPORTS AND COMMUNICATIONS
Not to exceed 15 minutes. Council Members report on subcommittee
assignments, listed below, and other City activities. At this time, any Council
Member or the City Manager may ask a question for clarification, make an
announcement, or report briefly on their activities. In addition, subject to Council
Policies and Procedures, they may provide a reference to staff or other
resources for factual information, request staff to report back to the Council at a
subsequent meeting concerning any matter or take action to direct staff to place
a matter of business on a future agenda. (Gov. Code Sec. 54954.2)
Mayor
Stewart
Vice Mayor
Shoresman
Council Member
Boswell
Council Member
Francis
Council
Member Marx
SLO Council of
Governments
Zone 9 Advisory
Committee
Airport Land Use Nacimiento Water
Project
Air Pollution
Control District
Regional
Economic Action
Coalition
Downtown
Association
Board
SLO Climate
Coalition
Community
Action
Partnership
Integrated
Waste
Management
Authority
CA Men’s
Colony Advisory
Committee
Homeless
Services
Oversight
Committee
Local Agency
Formation
Commission
County Water
Resources
Advisory
Committee
Performing Arts
Center
Commission
CP Campus
Planning
Committee
SLO Regional
Transit Authority
Visit SLO
County Advisory
Committee
Central Coast
Clean Energy
9.ADJOURNMENT
The next Regular Meeting of the City Council will be held on January 20, 2026
at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis
Obispo.
LISTENING ASSISTIVE DEVICES for the hearing impaired - 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.
City Council meetings are televised live on Charter Channel 20 and the City's
YouTube Channel: www.youtube.com/CityofSanLuisObispo. Agenda related
writings or documents provided to the City Council are available for public
inspection in the City Clerk’s Office located at 990 Palm Street, San Luis
Obispo, California during normal business hours, and on the City’s website
https://www.slocity.org/government/mayor-and-city-council/agendas-and-
minutes. Persons with questions concerning any agenda item may call the City
Clerk’s Office at (805) 781-7114.
Page 12 of 525
1
Council Minutes
December 2, 2025, 5:30 p.m.
Council Chambers, 990 Palm Street, San Luis Obispo
Council Members
Present:
Council Member Mike Boswell, Council Member Emily Francis,
Vice Mayor Michelle Shoresman, Mayor Erica A. Stewart
Council Members
Absent:
Council Member Jan Marx
City Staff Present: City Manager Whitney McDonald, Christine Dietrick, City
Attorney, Teresa Purrington, City Clerk
_____________________________________________________________________
Council Member Boswell requested that he be allowed to participate remotely
under the "Just Cause" provision of the Brown Act as he had a cold. The Council
voted unanimously to allow him to participate remotely.
1. CALL TO ORDER
The Regular Meeting of the San Luis Obispo City Council was called to order on
December 2, 2025 at 5:30 p.m. in the Council Chambers, 990 Palm Street, San
Luis Obispo, by Mayor Stewart with Council Member Boswell via teleconference
and Council Member Marx absent.
2. PLEDGE OF ALLEGIANCE
Vice Mayor Shoresman led the Council in the Pledge of Allegiance.
3. PRESENTATIONS
3.a CITY MANAGER REPORT
City Manager Whitney McDonald provided a report on upcoming projects.
4. PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA
Public Comment:
Stacy Schalde
Rachel Whalen
Don Hedrick
--End of Public Comment--
Page 13 of 525
2
5. CONSENT AGENDA
Vice Mayor Shoresman requested 5f be pulled from the Consent Agenda.
Public Comment:
None
--End of Public Comment--
Motion By Vice Mayor Shoresman
Second By Council Member Francis
To approve Consent Calendar Items 5a to 5e and 5g to 5m.
Ayes (4): Council Member Boswell, Council Member Francis, Vice Mayor
Shoresman, and Mayor Stewart
Absent (1): Council Member Marx
CARRIED (4 to 0)
5.a WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES
Waive reading of all resolutions and ordinances as appropriate.
5.b MINUTES REVIEW - NOVEMBER 18, 2025 COUNCIL MINUTES
Approve the minutes of the City Council meeting held on November 18,
2025
5.c SECOND READING OF O-1751 (2025 Series) AND O-1752 (2025
SERIES) ADOPTING BY REFERENCE THE 2025 CALIFORNIA
BUILDING AND FIRE CODES WITH LOCAL AMENDMENTS
1. Adopt Ordinance No. 1751 (2025 Series) entitled, “An Ordinance of
the City of San Luis Obispo, California, amending Title 15 of the
Municipal Code to adopt by reference and amend the latest edition
of the California Building Standards Code and adopting findings of
fact to support the amendments” (Attachment A) amending
Chapters 15.02 and 15.04 of the Municipal Code adopting, by
reference, the 2025 editions of the California Code of Regulations
Title 24, the 1997 editions of the Uniform Housing Code and the
Uniform Code for the Abatement of Dangerous Buildings, and the
2024 edition of the International Property Maintenance Code, with
amendments. This ordinance also includes adoption of the WUI
Code.
Page 14 of 525
3
2. Adopt Ordinance No. 1752 (2025 Series) entitled, “An Ordinance of
the City of San Luis Obispo, California, Adopting Local
Amendments to Part 6 of the Building Construction and Fire
Prevention Code 2026” (Attachment B) providing local energy
efficiency amendments to the California Energy Code.
5.d VICE MAYOR APPOINTMENT FOR 2026
Appoint Council Member Emily Francis to serve as Vice Mayor for a one -
year term commencing on December 3, 2025.
5.e AUTHORIZATION TO ADVERTISE BROADBAND IMPLEMENTATION
PROJECT - FFA, SPECIFICATION 2001063
1. Approve the project plans and special provisions for the Broadband
Implementation Project – FFA (project), Specification 2001063; and
2. Authorize staff to advertise for bids; and
3. Authorize the City Manager to award the Construction Contract
pursuant to Section 3.24.190 of the Municipal Code, if the lowest
responsible bid is within the publicly disclosed funding amount of
$2,200,000; and
4. Authorize the City Engineer to approve Contract Change Orders up
to the available project budget (Account 2001063), including any
amendments authorized by the City Manager; and
5. Authorize the City Manager to execute pole lease agreements with
PG&E and AT&T in a form approved by the City Attorney.
5.g AUTHORIZE ADVERTISEMENT OF WATER RESOURCE RECOVERY
FACILITY BIOSOLIDS HAULING REQUEST FOR PROPOSALS
1. Authorize the advertisement of a Request for Proposals for
Biosolids Hauling Services, Specification WRRF1225; and
2. Authorize the City Manager to award an agreement if the selected
proposal is within the Water Resource Recovery Facility’s approved
operating budget line item for biosolids hauling and management of
$500,000 for fiscal year 2025-26 and $525,000 for fiscal year 2026-
27; and
3. Find the action exempt from the California Environmen tal Quality
Act (CEQA).
Page 15 of 525
4
5.h AUTHORIZATION TO AWARD BATTERY ELECTRIC BUS CHARGING
INFRASTRUCTURE, SPECIFICATION NO. 2000403
1. Approve the project plans and specifications for the Battery Electric
Bus Charging Infrastructure, Specification No. 2000403; and
2. Award a construction contract to Newton Construction and
Management in the amount of $290,135 for the Battery Electric Bus
Charging Infrastructure, Specification No. 2000403; and
3. Authorize the City Engineer to approve Contract Change Orders up
to the available project budget (Account 2000403), including any
amendments authorized by the City Manager; and
4. Authorize the City Engineer to execute a contract with PG&E for
replacement and upgrading of the existing transformer servicing the
bus chargers; and
5. Authorize staff to purchase ChargePoint chargers and power
blocks from a SourceWell agreement #042221-CPI at the final price
within the available project budget; and
6. Authorize the Finance Director to transfer $370,800 from the Fleet
Replacement – Bus Replacement (Account No. 2000614), to the
Battery Electric Bus Charging Infrastructure (Account No.
2000403).
5.i AUTHORIZATION TO REPLACE COMPUTER-AIDED DISPATCH AND
AUTOMATED VEHICLE LOCATION SYSTEM FOR SLO TRANSIT
BUSES VIA COOPERATIVE AGREEMENT
Authorize the Replacement of Computer-Aided Dispatch and Automated
Vehicle Location System via Cooperative Agreement between
Connexionz, Ltd. and The Interlocal Purchasing System (TIPS).
5.j AWARD CONTRACT TO RE(DESIGN) FOR HOST SERVER
EQUIPMENT
1. Authorize the City Manager to award a contract to Re(Design) for
Dell replacement server infrastructure and support (Project Number
2000604-07); and,
2. Waive formal bids and authorize the use of NASPO Agreement
Number 23026 Participating Addendum No. 7-23-70-55-01, as
allowed under 03.24.060E of the City of San Luis Obispo Municipal
Code.
Page 16 of 525
5
5.k ADOPT A TEMPORARY EMPLOYEE SALARY SCHEDULE
REFLECTING 2026 MINIMUM WAGE INCREASE
Adopt Resolution No. 11613 (2025 Series) entitled, “A Resolution of the
City Council of the City of San Luis Obispo, California, adopting a Revised
Temporary Employee Salary Schedule” to comply with California State
law, requiring a minimum wage of $16.90 per hour effective January 1,
2026.
5.l 2025 UPDATE TO CITY STANDARD SPECIFICATIONS AND
ENGINEERING STANDARDS
1. Adopt Resolution No. 11614 (2025 Series) entitled “A Resolution of
the Council of the City of San Luis Obispo, California, approving
2025 Standard Specifications and Engineering Standards for
Construction”; and
2. Authorize the City Engineer to allow projects currently in design or
approved by Council for construction under the 2020 City Standard
Specifications to continue referencing the 2020 City Standard
Specifications on a case-by-case basis.
5.m FY 2025-26 CULTURAL ARTS AND COMMUNITY PROMOTIONS
GRANT AWARD MODIFICATIONS
1. Authorize the City Manager or her designee to modify allowed uses
of grant funding when executing contracts for the FY 2025-26
Cultural Arts and Community Promotions (CACP) grant recipients;
and
2. Authorize the City Manager or her designee to use d iscretion in
accepting or rejecting submitted receipts from the FY 2025 -26 grant
recipients, up to the approved grant amount for each recipient,
while ensuring overall purpose and intent remains consistent with
recommendations from the Promotional Coordinating Committee
and approval by City Council. Grantees must notify staff of any
requested deviation in the use of funds in advance of the
expenditure, and staff will bring any substantial deviations back to
the PCC for consideration.
Page 17 of 525
6
5.f AWARD OF CONSTRUCTION CONTRACT FOR RIGHETTI
COMMUNITY PARK
Supervising Civil Engineer Wyatt Baker-Hix and Capital Improvement
Program Administrative Manager Madeline Kacsinta provided an in -depth
staff report and responded to Council questions.
Public Comments:
Craig Graugnard
Jonathan
Lanny Hernandez
Mark Turner
Melanie Mills
---End of Public Comment---
Motion By Vice Mayor Shoresman
Second By Council Member Francis
1. Award a construction contract to Brough Construction, Inc. in the
amount of $18,495,589 for the Righetti Community Park Project,
inclusive of the Base Bid and Additive Alternate 1 (Pickleball) and
Alternative 3 (Bike Pump Track); and,
2. Authorize the City Engineer to approve Contract Change Orders up
to the available project budget (Account 2000054), including any
amendments authorized by the City Manager; and,
3. Authorize the Finance Director to transfer funds to the Righetti
Community Park Project from the following Capital Project
Accounts:
a. $779,319 in Capital Outlay (LRM) from the Storm Drain Project
Account (2090742); and,
b. $144,684 in Completed Projects/Undesignated Capital Account
(LRM); and,
4. Appropriate $3,904,675 from the Capital Projects Reserve Fund to
support the cost of the Righetti Community Park Project; and,
5. Adopt a Resolution No. 11612 (2025 Series) entitled, “A Resolution
of the City Council of the City of San Luis Obispo, California,
Authorizing Appropriation of $3,904,675 from the Capital Projects
Reserve Fund to support the Righetti Community Park Project,
Specification Number 2000054.”
Page 18 of 525
7
Ayes (4): Council Member Boswell, Council Member Francis, Vice Mayor
Shoresman, and Mayor Stewart
Absent (1): Council Member Marx
CARRIED (4 to 0)
6. PUBLIC HEARING AND BUSINESS ITEMS
6.a CONSIDERATION OF AN ORDINANCE AND RESOLUTION TO ADOPT
UPDATES TO THE HISTORIC PRESERVATION ORDINANCE AND
HISTORIC CONTEXT STATEMENT (CODE 0758-2025)
Principal Planner Brian Leveille and Stacey Kozakavich, Page and
Turnbull provided an in-depth staff report and responded to Council
questions.
Public Comments:
None
---End of Public Comment---
Motion By Mayor Stewart
Second By Council Member Francis
1. Introduce Ordinance No. 1753 (2025 Series) entitled, “An
Ordinance of the City Council of the City of San Luis Obispo,
California, repealing Chapter 14.01 (Historic Preservation
Ordinance) of the Municipal Code in its entirety and introducing and
adopting a replacement Chapter 14.01 to include recommended
updates and amendments”; and finding that the project is
categorically exempt from environm ental review under Section
15308, Actions by Regulatory Agencies for the Protection of the
Environment; and
2. Adopt Resolution No. 11615 (2025 Series) entitled, “Resolution of
the City Council of the City of San Luis Obispo, California, adopting
updates to the Historic Context Statement”; and finding that the
project is categorically exempt from environmental review under
Section 15308, Actions by Regulatory Agencies for the Protection
of the Environment.
Ayes (4): Council Member Boswell, Council Member Francis, Vice Mayor
Shoresman, and Mayor Stewart
Page 19 of 525
8
Absent (1): Council Member Marx
CARRIED (4 to 0)
6.b GENERAL PLAN AMENDMENT FOR WASTEWATER COLLECTION
SYSTEM CAPACITY CONSTRAINED MAP AND ADOPTION OF
LATERAL REBATE PROGRAMS
Deputy Director - Wastewater Chris Lehman and Utilities Projects
Manager Shawna Scott provided an in-depth staff report and responded to
Council questions.
Public Comments:
Rachel Whalen
---End of Public Comment---
Motion By Vice Mayor Shoresman
Second By Mayor Stewart
1. Adopt Resolution No. 11616 (2025 Series) entitled, "A Resolution of
the City Council of the City of San Luis Obispo, California
Approving Amendments to the Water and Wastewater Element of
the General Plan (GENP-0762-2025)"; and
2. Adopt Resolution No. 11617 (2025 Series) entitled, "A Resolution of
the City Council of the City of San Luis Obispo, California,
Amending the Private Sewer Lateral Replacement Rebate Program
and Establishing a Private Sewer Lateral Inspection Rebate
Program"; and
3. Find the actions exempt from the California Environmental Quality
Act.
Ayes (4): Council Member Boswell, Council Member Francis, Vice Mayor
Shoresman, and Mayor Stewart
Absent (1): Council Member Marx
CARRIED (4 to 0)
6.c ABANDONMENT OF A PORTION OF CHURCH STREET RIGHT-OF-
WAY AT 1804 OSOS STREET
Supervising Civil Engineer Gabriel Munoz-Morris provided an in-depth
staff report and responded to Council questions.
Page 20 of 525
9
Public Comments:
None
---End of Public Comment---
Motion By Council Member Francis
Second By Vice Mayor Shoresman
1. Conduct a public hearing pursuant to California Streets and
Highways Code (CSHC) § 8320 et seq.
2. Adopt Resolution No. 11618 (2025 Series) entitled, “A Resolution of
the City Council of the City of San Luis Obispo, California,
abandoning a 6-foot-wide portion of Church Street public right-of-
way adjacent to 1804 Osos Street” and authorize recordation once
conditions of abandonment have been met.
Ayes (4): Council Member Boswell, Council Member Francis, Vice Mayor
Shoresman, and Mayor Stewart
Absent (1): Council Member Marx
CARRIED (4 to 0)
7. LIAISON REPORTS AND COMMUNICATIONS
Mayor Stewart
Attended Coast Rail Commission meeting in King City on November 21,
2025.
Attended the media preview for Cambria on November 21, 2025
Vice Mayor Shoresman
Attended the Homeless Services Oversight Committee Meeting on
November 19, 2025
Flipped the Switch to Light up the Plaza on November 28, 2025
Attended Good Morning SLO on November 25, 2025
Attended meet and greet at ATSU at the former Mind Body location on
November 19, 2025
Council Member Boswell
Attended SCLC meeting on November 20, 2025
Page 21 of 525
10
Attended Light Up the Plaza on November 28, 2025
Council Member Francis
Attended the Investment Oversight Committee meeting on November 20,
2025
Attended Light Up the Plaza on November 28, 2025
Attended the Community Action Partnership (CAPSLO) Board of Directors
meeting on November 20, 2025
8. ADJOURNMENT
The meeting was adjourned at 8:53 p.m. The Regular Meeting of the City Council
on December 16, 2025 has been cancelled. Instead, the City Council will hold a
Special Meeting on December 15, 2025 at 1 p.m. in the Council Hearing
Room at City Hall, 990 Palm Street, San Luis Obispo.
The next rescheduled Regular Meeting of the City Council will be held on
January 13, 2026 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm
Street, San Luis Obispo.
APPROVED BY COUNCIL: XX/XX/202X
Page 22 of 525
1
Council Minutes
December 15, 2025, 1:00 p.m.
Council Chambers, 990 Palm Street, San Luis Obispo
Council Members
Present:
Council Member Mike Boswell, Vice Mayor Emily Francis,
Council Member Jan Marx, Council Member Michelle
Shoresman, Mayor Erica A. Stewart
City Staff Present: City Manager Whitney McDonald, Christine Dietrick, City
Attorney, Teresa Purrington, City Clerk
_____________________________________________________________________
1. CALL TO ORDER
A Special Meeting of the San Luis Obispo City Council was called to order on
December 15, 2025 at 1:05 p.m. at Council Chambers, 990 Palm Street, San
Luis Obispo, by Mayor Stewart.
2. PLEDGE OF ALLEGIANCE
Council Member Boswell led the Council in the Pledge of Allegiance.
3. PUBLIC COMMENT FOR ITEMS ON THE AGENDA ONLY
4. BUSINESS ITEMS
4.a CONSIDERATION OF REMOVAL OF TENANT COMMISSIONER OF
THE HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO
(HASLO) (20 MINUTES)
Michelle Pediego, Executive Director of HASLO provided an in-depth staff
report and responded to Council questions.
Public Comments:
Nancy Welsh
---End of Public Comment---
Motion By Mayor Stewart
Second By Council Member Marx
To remove Tenant Commissioner Nancy Welsh from the Housing Authority
Board.
Page 23 of 525
2
Ayes (5): Council Member Boswell, Vice Mayor Francis, Council Member
Marx, Council Member Shoresman, and Mayor Stewart
CARRIED (5 to 0)
4.b AUTHORIZATION TO HIRE A CALPERS RETIRED ANNUITANT TO
SERVE AS FIRE CHIEF ON AN INTERIM BASIS PURSUANT TO
GOVERNMENT CODE SECTIONS 7522.56 AND 21221(H) (15
MINUTES)
City Manager Whitney McDonald provided a brief staff report and
responded to Council questions.
Public Comments:
None
---End of Public Comment---
Motion By Vice Mayor Francis
Second By Council Member Marx
Adopt Resolution No. 11619 (2025 Series) entitled, “A Resolution of the
City Council of the City of San Luis Obispo, California, Authorizing the City
Manager to Appoint Randall Harris, who will be a CalPERS Retired
Annuitant at the Time of Appointm ent, to Serve as Interim Fire Chief
During the National Search for a Permanent Fire Chief Pursuant to
Government Code Section 7522.56 and 21221(h)."
Ayes (5): Council Member Boswell, Vice Mayor Francis, Council Member
Marx, Council Member Shoresman, and Mayor Stewart
CARRIED (5 to 0)
City Council moved the meeting to the Council Hearing Room.
4.c 2026 COUNCIL LIAISON AND SUBCOMMITTEE ASSIGNMENTS (90
MINUTES)
Action: Council reviewed and discussed Council’s 2026 Council Liaison
and Subcommittee Assignments.
5. ADJOURNMENT
The meeting was adjourned at 2:30 p.m. The next Regular Meeting of the City
Council will be held on January 13, 2026 at 5:30 p.m. in the Council Chambers at
City Hall, 990 Palm Street, San Luis Obispo.
APPROVED BY COUNCIL: XX/XX/202X
Page 24 of 525
Item 6c
Department: Administration
Cost Center: 1021
For Agenda of: 1/13/2026
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Teresa Purrington, City Clerk
SUBJECT: COUNCIL LIAISON SUBCOMMITTEE ASSIGNMENTS FOR 2026
RECOMMENDATION
Approve the Council Liaison Subcommittee assignments for the 2026 calendar year.
POLICY CONTEXT
Council Policies and Procedures and the Advisory Body Handbook prescribe the method
of Council Liaison Subcommittee assignments:
The Mayor and Vice Mayor shall submit recommendations to the full Council
rotating nominations for Council Member Subcommittees, thereby ensuring
an opportunity for each member to serve as liaison at least once on each
advisory body when possible. When terms of office do not allow each
member to serve once, members with greatest seniority shall have first right
of selection (CP&P 6.5.2, ABH III, C, 6).
Council Policies and Procedures defines the role, purpose, and attendance of the Council
Liaison as:
Council liaisons do not serve as ex-officio members of the advisory bodies,
but rather as a conduit to express the position of the Council and to gain a
better understanding of the issues considered by the advisory body. (CP&P
6.1.2) The purpose of the liaison assignment is to facilitate communication
between the Council and advisory body. (CP&P 6.1.3) From time to time,
attend advisory body meetings for observation purposes only. Liaison
members should be sensitive to the fact that they are not participating
members of the advisory body but are there rather to create a linkage
between the City Council and advisory body. (CP&P 6.1.6)
DISCUSSION
At the December 2, 2025 City Council meeting, the Council discussed the process to
make the Council Liaison and Subcommittee assignments. At the conclusion of the
meeting, it was decided that a special meeting would be held on December 15, 2025, to
meet and discuss the 2026 assignments.
On December 15, 2025, the Council held a special meeting where they reviewed and
Page 25 of 525
Item 6c
discussed each of the assignment requests. Attachment A, the 2026 Council Liaison and
Subcommittee assignments, was the outcome of the meeting.
Public Engagement
This is an administrative item, so no outside public engagement was completed. The City
Council did hold a Special Meeting on December 15, 2025, where the public could attend
and provide public comment. Public comment can also be provided to the City Council
through written correspondence prior to the meeting and through public testimony at the
meeting.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act 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: FY 2025-26
Funding Identified: N/A
Fiscal Analysis:
Funding Sources
Current FY
Cost
Annualized
On-going Cost
Total Project
Cost
General Fund N/A
State
Federal
Fees
Other:
Total
There are no new fiscal impacts associated with the Council Liaison Subcommittee
assignments.
ALTERNATIVES
1. Council may make changes to the proposed Council Liaison Subcommittee
assignments.
2. Council could direct staff to amend Council’s Policy and Procedures and the Advisory
Body Handbook to change how the Liaison and Subcommittee assignments are
conducted.
ATTACHMENT
A - Council Liaison Subcommittee Assignments for 2026
Page 26 of 525
Council Subcommittee and Liaison Assignments for 2026
City Advisory Bodies
Interview/Rec. Appointment/Facilitate
Comm.
Meeting Frequency / Time Chair Member Chair Member
Active Transportation Committee Every other month 3rd
Thursday at 6:00 PM Shoresman Boswell Shoresman Boswell
Administrative Review Board As needed - only met once a
year in 2 years Francis Stewart Francis Stewart
Architectural Review Commission 1st and 3rd Monday of month
- 5:30 PM Boswell Francis Marx Shoresman
Construction Board of Appeals As needed - Hasn't met in 3
years Marx Shoresman Francis Marx
Citizen's Revenue Enhancement
Oversight Commission Minimum of 4 times per year Stewart Shoresman Stewart Boswell
Cultural Heritage Committee 4th Monday of the month -
5:30 PM Francis Marx Francis Marx
Human Relations Commission Quarterly, 1st Wednesday -
5:00 PM Stewart Shoresman Shoresman Stewart
Investment Oversight Committee Quarterly Francis Marx Francis Marx
Mass Transportation Committee Every other month, 2nd
Wednesday - 2:30 PM Boswell Stewart Boswell Stewart
Parks & Recreation Commission 1st Wednesday of month -
5:30 PM Francis Marx Francis Shoresman
Personnel Board As needed Stewart Marx Stewart Shoresman
Planning Commission 2nd and 4th Wednesday of
every month - 6:00 PM Francis Boswell Shoresman Boswell
Promotional Coordinating Committee 2nd Wednesday of every
month - 5:30 PM Shoresman Boswell Francis Boswell
Tourism Business Improvement
District Board
2nd Wednesday of every
month - 10:00 AM Shoresman Francis Francis Boswell
Tree Committee 4th Monday of every month -
5:00 PM Boswell Stewart Boswell Stewart
Member Alternate Member Alternate
Housing Authority
(Mayor by state mandate)Stewart Stewart
City Selection Committee (Mayor/V.
Mayor Alternate) Once a year Stewart Shoresman Stewart Francis
Citizen's Transportation Advisory
(CTAC), a SLOCOG Regional
Committee (Mayor)
Stewart Stewart
Regional Economic Action Coalition
(REACH) Stewart Stewart Rotation
Performing Arts Center Commission
(Mayor/V. Mayor Alt.)Quarterly Stewart Shoresman Stewart Francis
Visit SLO County Advisory Com.
(Mayor/V. Mayor Alt.)
3rd Wednesday every month -
8:30 AM Stewart Shoresman Stewart Francis
Whale Rock Commission
(Mayor/V. Mayor Alt.)
Once a year in April or May -
1:30 PM Stewart Shoresman Stewart Francis
Area Agency on Aging (Mayor)Stewart Stewart
2025 2026
Page 27 of 525
Council Subcommittee and Liaison Assignments for 2026
Member Alternate
Air Pollution Control District (APCD)4th Wednesday every odd
numbered month - 9:00 AM Marx Boswell Marx Boswell
LAFCO (Liaison only)3rd Thursday of every month -
9:00 AM Boswell Francis Boswell Shoresman
SLO Council of Governments
(SLOCOG) Same Council Rep. as
SLORTA
Jan, Feb, April, June, August
October, December - 8:30
AM
Stewart Francis Stewart Francis
San Luis Obispo Regional Transit
Authority (SLORTA) Same Council
Rep. as SLOCOG
1st Wednesday of every
other month - 8:30 AM Stewart Francis Stewart Francis
Airport Land Use Council
Subcommittee
3rd Wednesday of the month -
1:30 PM Boswell Francis Francis Boswell
California Mens Colony Citizens
Advisory Committee (*2 year term)Every 2 months or as needed Stewart Boswell Stewart Boswell
Community Action Partnership 3rd Thursday of every month -
5:15 PM Francis Boswell
Homeless Services Oversight
Committee (HSOC)
3rd Wednesday every other
month 3:00 PM Shoresman Marx Shoresman Francis
County Water Resources Adv.
Committee (BOS ratifies)
1st Wednesday of month -
1:30 PM Marx Francis Marx Boswell
County Regional Water Management
Group (RWMG)As Needed Marx Francis Stewart Marx
Nacimiento Water Project Once every 3 months, 4th
Thursday - 4:00 PM Francis Marx Francis Marx
Downtown Association Board
(Monthly)
2nd Tuesday of every Month -
7:30 AM Shoresman Boswell Shoresman Boswell
Integrated Waste Management
Authority (IWMA)
2nd Wednesday every 2
months - 1:30 PM Marx Shoresman Shoresman Boswell
Zone 9 Advisory Committee 2nd Wednesday of even
numbered months - 1:30 PM Shoresman Francis Francis Marx
Cal Poly Campus Planning Committee Quarterly Shoresman Marx Shoresman Marx
Climate Coalition 3rd Thursday of every month -
6:30 PM Boswell Shoresman Boswell Francis
Central Coast Community Energy
(3CE) – Policy Board Director
Quarterly - 9:00 AM or as
scheduled Stewart Marx
Member Alternate Member Alternate
Mayor's Advisory Body Chair
Quarterly Meeting (Mayor/Rotation)
Quarterly, 2nd Thursday -
11:30 AM Stewart Rotation Stewart Rotation
Student Community Liaison
Committee (Mayor/Rotation)
3rd Thursday of every month -
3:00 PM Stewart Rotation Stewart Rotation
City / University
(Mayor/Rotation)Quarterly Stewart Rotation Stewart Rotation
2025 2026
Page 28 of 525
Item 6d
Department: Public Works
Cost Center: 5002
For Agenda of: 1/13/2026
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Public Works & Utilities Director
Prepared By: Greg Cruce, Deputy Director – Maintenance Operations
SUBJECT: AUTHORIZE THE TRANSFER OF CAPITAL AND OPERATING FUNDING
FOR THE PURCHASE OF AN AUTONOMOUS FIELD STRIPER
RECOMMENDATION
Adopt a draft resolution entitled “A Resolution of the City Council of the City of San Luis Obispo,
California, Authorizing the Transfer of Unused Fleet Capital Funding and Supplemental Salary
Savings to the Parks Major Maintenance Capital Account for the Purchase of an Autonomous
Sports Field Striper” for the Damon Garcia Sports Complex: (Attachment A)
1. Approve the transfer of $38,000 in available fleet replacement funding from the
Fleet Replacement Project (2000520-02.12), originally allocated for the
replacement of fleet asset #0849, to the Parks Major Maintenance Capital
Account (2001010); and
2. Approve the transfer of $3,640 in Parks Maintenance salary savings to the
Parks Major Maintenance Capital Account (2001010).
POLICY CONTEXT
This action supports the City’s 2025–2027 Major City Goal of Cultural Vitality, Economic
Resilience, and Fiscal Sustainability, specifically Strategy 5: Balance operational needs
and infrastructure investments with consideration of the long -term fiscal sustainability of
the City organization. The proposed purchase reduces long-term operational budget
needs by decreasing reliance on supplemental staffing and lowering ongoing labor and
material costs, while maintaining service levels within the Parks Maintenance Program.
Although the purchase of the autonomous sports field striper is below the City Council
purchase threshold of $199,999, Council authorization is required because this item
involves:
1. Reallocation between capital accounts – transferring $38,000 from the Fleet
Replacement – Public Works Project to the Parks Major Maintenance Capital
Account; and
Page 29 of 525
Item 6d
2. Transfer between operating and capital funds – transferring $3,640 in salary
savings from the supplemental staffing account to the Parks Major Maintenance
Capital Account.
Both types of transfers fall under section 540 City’s Financial Management Policy, which
requires Council approval to ensure transparency, proper appropriation, and fiscal
oversight.
The purchase itself will comply with City purchasing procedures, as outlined in section
3.24.060 (C) of the Municipal Code, which allows a sole-source purchase when the item
can be obtained from only one vendor. Section 202 of the City’s Financial Management
Policy identifies this as a “General Goods” Tier 2 purchase, which requires approval by
the Department Head and Fiscal Officer.
DISCUSSION
Background
The Parks Maintenance Program, managed by the Public Works and Utilities Department,
maintains 28 park sites and 113 landscaped areas across the City, including the Damon
Garcia Sports Complex (DGSC). DGSC is a 23.5-acre facility with 11 acres of turf and up
to 12 sports fields, depending on the time of year. The sports complex opens after 4:00
pm on weekdays and at 7:00 am on weekends, allowing play from August through May
for soccer, rugby, flag football, and lacrosse. These events draw athletes and families
from the community and beyond. The City closes the sports complex in June and July
each year for a comprehensive turf renovation, which is necessary to support the level of
use.
DGSC has two full-time Parks Maintenance Specialists assigned to the facility, along with
one Parks Maintenance Aide who spends about 60% of their time there assisting the
Specialists. Duties include turf maintenance, such as annual renovations, fertilizin g,
mowing, edging, irrigation maintenance and repair, and field striping. They also care for
the non-turfed areas of the facility, including surrounding fields, parking lots, and
buildings.
Each year, following the annual turf renovation and before the facility opens, staff use
field GPS equipment to precisely mark field lines, which are then manually striped. This
is a weekly task totaling approximately 633 hours annually, not including time spent on
machine prep or cleaning. Weekly striping is essential for optimal play and to prevent the
lines from disappearing when mowed, which would require additional GPS layout.
To improve efficiency at the facility and within the Parks Maintenance Program, staff have
been exploring and testing autonomous equipme nt. DGSC offers an ideal location for this
technology because the facility is closed to the public during business hours for
maintenance. Currently, there are no suitable autonomous mowers that comply with
California emissions regulations, but staff continue to monitor the market for such
advancements. However, staff have identified and tested two different autonomous field
Page 30 of 525
Item 6d
stripers for use at DGSC and found that a Tiny Mobile Robot model effectively meets the
facility's needs. This unit has also been successfully tested by the San Luis Coastal
School District, eliminating the need to manually stripe all fields and thereby increasing
operational efficiency. Incorporating this equipment into DGSC operations will save nearly
450 staff hours each year, enabling staff to increase maintenance at other parks, including
the recently completed North Broad Street Park and the upcoming Righetti Ranch
Community Park.
Public Engagement
This item is a consent item for the January 13, 2026 City Council meeting and will follow
all required postings and notifications. The public will have an opportunity to comment on
this item at or before the meeting.
CONCURRENCE
The Finance and Parks and Recreation Department have been advised on the purchase
and concur.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to this action, as it
involves the purchase of equipment and the reallocation of existing funds, and will not
result in physical changes to the environment.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2025-26
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
CIP Project
Account
2000520-02.12
(Fleet Repl Fund
– LRM)
$ 38,000 -$38,000 $0 $0
Salary Savings
(101.5002.51004)
$98,682 -$3,640 $95,042
CIP Project
Account 2001010-
29 (General Fund)
$0 $3,640 $3,640
CIP Project
Account 2001010-
29 (Fleet Repl –
LRM)
$0 $38,000 $38,000
Page 31 of 525
Item 6d
Total $136,682 $0 $136,682 $0
A cost-saving analysis (Attachment B) shows that implementing an autonomous field
striper at DGSC is expected to save nearly 450 staff hours annually and reduce paint
usage for field striping from 1,344 gallons to 672 gallons. The combined labor and material
savings are estimated at $36,206 annually. The staff time saved by using the
autonomous striper will be redistributed across the City’s 28 parks.
The total cost of the striper — including the unit, configuration, training, and a one -year
subscription — is $41,640 (Attachment C). The annual subscription is for technical
support, and staff do not expect to need this subscription beyond the first year of
operation. Based on the projected savings, the City is expected to recoup the capital
expense within approximately 14 months of operation.
Previously, the Parks Maintenance Program relied on a retired annuitant to conduct
landscape inspections at the City’s 113 landscaped sites. Due to CalPERS regulation
changes, the employee resigned in June 2025, and the responsibilities were redistributed
among existing staff. The vehicle assigned to the former employee had been included in
the 2025–27 Capital Improvement Plan for replacement, with $38,000 allocated in Year
One (Task 02.12, Fleet Replacement – Public Works Project, 2000520-02.12). This
vehicle is no longer needed.
To fund the purchase of the Tiny Mobile Robot striper, $38,000 in available fleet
replacement funds and $3,640 in supplemental salary savings from the vacant position
are proposed for transfer to the Parks Major Maintenance Capital Account (2001010).
The supplemental staffing account within the Parks Maintenance budget currently has a
balance of $98,682, of which $27,883 (28%) is available following the annuitant’s
resignation and will not be allocated to other staffing needs.
ALTERNATIVES
Council could decide not to approve the transfer of funding to purchase an
autonomous sports field striper. Should Council pursue this alternative, the Parks
Maintenance Program would continue to manually stripe the sports fields at Damon
Garcia Sports Complex, which would not improve efficiencies.
Council could direct staff to identify a different funding source. Should Council
pursue this alternative, staff will look for direction on a recommended funding source and
follow all applicable policies to transfer the funding to the Parks Major Maintenance
Capital Account.
Council could direct staff to delay the purchase and include it in the 2027-29
Financial Plan. Should Council pursue this alternative, staff will include the necessary
funding to purchase the autonomous field striper in the City’s next Financial Plan.
Page 32 of 525
Item 6d
ATTACHMENTS
A - Draft Resolution authorizing the reallocation of capital and operating funds to
purchase an autonomous sports field striper for the Damon Garcia Sports Complex
B - Cost Savings Calculator
C - Tiny Mobile Robot Quote
Page 33 of 525
Page 34 of 525
R ______
RESOLUTION NO. _____ (2026 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING THE TRANSFER OF UNUSED
FLEET CAPITAL FUNDING AND SUPPLEMENTAL SALARY SAVINGS
TO THE PARKS MAJOR MAINTENANCE CAPITAL ACCOUNT FOR THE
PURCHASE OF AN AUTONOMOUS SPORTS FIELD STRIPER
WHEREAS, the Public Works and Utilities Department, through the Parks
Maintenance Program, is responsible for maintaining the Damon Garcia Sports Complex,
which contains up to 12 athletic fields and host s year-round community sports activities;
and
WHEREAS, annual athletic field striping at Damon Garcia Sports Complex
requires approximately 633 hours of staff labor per year, and represents a significant
ongoing operational commitment; and
WHEREAS, City staff have evaluated autonomous field striping technology and
determined that using this equipment at Damon Garcia Sports Complex would save
nearly 450 hours of labor each year; and
WHEREAS, the total cost of the autonomous field striper, including co nfiguration,
training, and a one-year subscription for technical support, is $41,640; and
WHEREAS, $38,000 was previously allocated in the 2025–27 Capital
Improvement Plan (Task 02.12, Fleet Replacement – Public Works Project, 2000520-
02.12) for the replacement of fleet asset #0849, which is no longer needed; and
WHEREAS, $3,640 in supplemental salary savings from the vacant Parks
Maintenance position is available for reallocation.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo that:
SECTION 1. The City Council authorizes the reallocation of $38,000 in fleet
replacement funds and $3,640 in supplemental salary savings to the Parks Major
Maintenance Capital Account (2001010) for the purchase of a Tiny Mobile Robot
autonomous field striper.
Upon motion of Council Member ___________, seconded by Council Member
___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
Page 35 of 525
Resolution No. _____ (2026 Series) Page 2
R ______
The foregoing resolution was adopted this 13th day of January 2026.
___________________________
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 36 of 525
Manual
190
$11,205
$10,080
Total Annual Costs $21,285
633
$37,331
$20,160
$57,491
Cost Savings
Analysis
Total Fields:9
Hours Painting:
Labor Costs:
Paint Costs:
*Estimating $15 per Gallon
Annual Savings with TinyMobileRobots
$36,206
Click here to schedule a Demo!
Tiny RobotsMobile
Estimated Annual
Spending:
*Estimating $33.7 per Hour
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6e Item 6e
Department: Information Technology
Cost Center: 1101
For Agenda of: 1/13/2026
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Josh Erquiaga, IT Manager
SUBJECT: APPROVE RELEASE OF A REQUEST FOR QUALIFICATIONS FOR
AUDIO-VISUAL SERVICES
RECOMMENDATION
1. Approve the release of a Request for Qualifications (RFQ) to establish a list of
prequalified Audio-Visual (AV) Service vendors following the expiration of the 45-day
notice period in compliance with AB 339 (no earlier than February 5, 2026); and
2. Authorize the Deputy City Manager to execute professional service agreements with
the selected consultants; and
3. Authorize the Finance Director to execute and amend purchase orders for individual
professional service agreements in an amount not-to-exceed the authorized budget.
POLICY CONTEXT
The City’s Purchasing Policy outlines the City’s purchasing process and requires approval
of different purchases (including Professional Services) based on tiers determined by the
purchase type and value. For example, professional services under $10,000 would
require that a purchase requisition be approved by the Fiscal Officer and a purchase order
approved by the Purchasing program in the Finance Department (Tier 1). Likewis e,
professional services estimated at $150,000 or more would require City Council approval
and the issuance of a Request for Proposal (RFP), which would start a formal bidding
process for the work needed (Tier 5). There are other tiers in between that requ ire staff
to obtain quotes from at least 3 businesses or engage in a formal bidding process, which
can take considerable time.
However, if Council approves a Request for Qualifications (RFQ) under Municipal Code
3.24.070-C, the City can create a list of pre-qualified on-call consultants to create greater
operational flexibility than seeking quotes and bids for each and every project. The
purchase orders for individual contracts with on -call consultants cannot exceed the
authorized project budget without the appropriate additional approval given the amount
and project1.
1 Projects would need additional approvals based on the amount of the project and the City’s purchasing
policies should they fall outside of pre-approved project budgets (e.g. CIP budgets approved by Council
as part of the financial plan).
Page 43 of 525
Item 6e
With that in mind, using the attached RFQ, the City’s Information Technology Manager
will create a prequalified list of on-call consultants that staff would be authorized to work
with based on the on-call agreements, up to allocated budget amounts by project, for the
five-year agreement period.
Effective January 1, 2026, AB 339 will require notice of the City’s intent to enter into
certain contracts that implicate work that could otherwise be within the scope of work of
a represented bargaining group. While AB 339 was not in effect at the time of circulation
of the staff report, and it is arguable whether the relevant services are within the scope of
work of SLOCEA members, staff opted to provide the requisite notice before the effective
date out of an abundance of caution and to afford the potentially affected bargaining group
adequate time to consider the intended contract in advance of the date of C ity Council
consideration and to provide comments if deemed necessary. Notice was provided to
SLOCEA on December 22, 2026, which means that the RFQ can not be released earlier
than February 5, 2026.
DISCUSSION
Background
The City maintains a number of complex audio-visual (AV) systems that support internal
meetings, public meetings, and live broadcasts. These systems are installed in
conference and meeting rooms throughout City facilities, as well as in the Council
Chamber, which serves as the primary venue for broadcasting public meetings. Reliable
and well-functioning AV systems are essential for conducting City business efficiently and
ensuring compliance with public meeting regulations like the Brown Act. Recent changes
to the Brown Act require the City to provide additional hybrid meeting options for public
meetings by July 1, 2026. These new requirements will likely drive additional AV needs.
Due to the complexity of these systems and the specialized skills required to support
them, the City has relied on contractors with expertise in professional AV design,
installation, and maintenance. These contractors assist with troubleshooting, repairs,
upgrades, and integration of new technology to keep systems operating consistently and
in compliance with accessibility and broadcast standards.
To maintain system reliability and support future needs, staff recommend releasing a
Request for Qualifications (RFQ) to identify and prequalify experienced AV service
providers. Establishing a list of qualified contractors will streamline procurement for future
projects and service needs, allowing staff to respond more efficiently to equipment issues,
system updates, or emerging technology requireme nts.
There is a limited pool of skilled AV contractors on the Central Coast. By pre-qualifying
known contractors that are available in the region, staff can work with contractors to get
equipment repaired and/or installed in an expedited fashion.
Page 44 of 525
Item 6e
Authorizing the release of this RFQ will help ensure the City’s AV infrastructure remains
dependable, current, and capable of supporting both staff operations and public
engagement. Respondents to the RFQ will return proposals with pricing for labor that will
then be in effect for the duration of the qualified list, and equipment is generally purchased
using competitively bid contracts to ensue the City is receiving competitive pricing.
Previous Council or Advisory Body Action
Public Engagement
This item will be before Council during the public session on January 13, 2026. The public
can provide comments at or before the meeting. If approved by City Council, the RFQ will
be advertised to the public and posted in BidSync.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act 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: N/A Budget Year: 2025-26
Funding Identified: N/A
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $0 $ $ $0
State
Federal
Fees
Other:
Total $0 $ $ $0
There is no fiscal impact associated with the recommendation. By issuing an RFQ, the
City will establish agreements with qualified vendors to create a list of pre-qualified AV
vendors. Any fiscal impact will occur following the creation of a qualified vendor list, and
any contracts with consultants on this list will be subject to approved project budgets.
ALTERNATIVES
1. Council could deny authorization to release the RFQ. Not proceeding with an RFQ
would require City staff to bid all AV projects independently, adding delays in
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Item 6e
procurement, which could impact the City's ability to conduct business and hold public
meetings.
ATTACHMENTS
A – Draft RFQ for Audio-Visual Services
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The City of San Luis Obispo is committed to including disabled persons in all of our services, programs and activities.
Telecommunications Device for the Deaf (805) 781-7410.
Notice Requesting Qualifications for Audio-Video Services
The City of San Luis Obispo is requesting proposal for audio-video service providers.
All firms interested in receiving further correspondence regarding this Request for Proposals (RFQ) will
be required to complete a free registration using BidNet Direct (www.bidnetdirect.com/).
All proposals must be received by the City in a sealed envelope or via BidNet Direct by [TBD] when they
will then be opened electronically via BidNet Direct on the proposal end date and time.
The preferred method for bid submission is electronically via BidNet Direct. However, if you wish to
submit a paper copy, please submit it in a sealed envelope to the Department of Finance, at 990 Palm
Street, San Luis Obispo, CA, 93401, at or before 3 pm on [TBD].
Questions should be submitted electronically on BidNet, and the City will answer on BidNet.
Project packages and additional information may be obtained at the City’s BidNet Direct website at
www.BidNetDirect.com.
For technical help with BidNet Direct please contact BidNet Direct tech support at 800-835-4603.
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TABLE OF CONTENTS
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A. INTRODUCTION
The City of San Luis Obispo (City) wishes to obtain the services of professional audio-video firms to provide
audio-video equipment, installation, and maintenance at various City facilities. The selected firm(s) will be
issued project-specific purchase orders and projects will be assigned by the City.
B. SCOPE OF WORK
The City is seeking proposals from audio-video firms for on-call installations, maintenance, and repair
services of audio-video systems at various City facilities. Contractors will provide full-service, on-call audio-
video installation, maintenance, technical support, and repair services and administer the duties and
responsibilities set forth in this Request for Qualifications (RFQ), in compliance with all applicable laws,
regulations, policies, and procedures.
Services to be performed include the furnishing of all labor, materials, tools, equipment, supplies, services,
tasks, and incidental and customary work necessary to competently perform on-call audio-video installation,
maintenance, technical support, and repair work at various City facilities.
The work will include the provision of a total maintenance and repair program consisting of a variety of
tasks, including, but not limited to, designing, installing, replacing, wiring, and testing audio-video systems
and components used to provide audio-video capabilities (e.g. conference room displays, web conferencing,
room sharing, microphones, speakers, etc.) in municipal buildings and facilities. Services may also include
installing and repairing conduit, data cabling and other materials to support audio-video systems to ensure
safe, well-maintained, reliable audio-video systems for City employees and the public. The scope and
number of projects and tasks are unknown at the time of contract execution.
The Contractor shall leave work areas free of all dirt, litter, or other materials utilized to perform audio-
video installation and maintenance.
The Contractor shall erect barricades, warning signs, and any other devices to prevent unauthorized access
by the public or unauthorized City staff to work areas.
The Contractor shall respond to all requests for repairs or unscheduled emergency repairs as required, 24
hours per day, 365 days per year, including holidays. All costs for labor and materials for these calls shall be
included in the proposal. Response time by the Contractor shall be within four (4) hours of all requests, and
two (2) hours for emergency requests. Contractor shall respond on-site as needed within four (4) hours of
emergency requests.
The successful proposer will be responsible for providing labor, supervision, materials, equipment,
transportation, service and the shop facilities necessary to perform high quality work. Contractor will also
be responsible for discarding all used materials.
It is the intent of the City of San Luis Obispo to identify and establish long-term partnerships with highly
qualified contractors. To achieve the best level of service, the City believes that the relationship must be
based on mutual trust and respect. Teamwork, flexibility, and cooperation will be essential characteristics
of the successful Contractor.
It shall be the Contractor’s responsibility to effectively repair and maintain, to the satisfaction of the City
representative, all aspects of audio-video systems in City defined facilities with minimal downtime. All
maintenance and repairs shall be provided in accordance with the highest standards of the industry, skill,
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workmanship, applicable trade practices, shall meet warranties and be in conformance to all applicable laws,
codes and regulations. The successful Contractor’s audio-video maintenance and repairs shall, at a
minimum, include but not be limited to the specifications outlined herein.
SCOPE OF SERVICE: The Contractor shall provide full-service on-call design, installation, maintenance, and
repair services of audio-video systems within City Facilities as outlined in this document. Contractor shall
utilize professional personnel who have successfully and competently provided municipal facility audio-
video design, installation, maintenance, and repair services on projects of similar scope and complexity. It
shall be the Contractor’s responsibility to effectively repair and maintain, to the satisfaction of the City
representative, all aspects of audio-video systems in City defined facilities with minimal downtime. All
maintenance and repairs shall be provided in accordance with the highest standards of the industry, skill,
workmanship, and applicable trade practices, shall meet warranties, and be in conformance with all
applicable laws, codes, and regulations.
SERVICES TO BE PROVIDED
The successful Contractor’s audio-video installation, maintenance, and repairs shall, at a minimum,
include but not be limited to the services and specifications outlined herein.
It is the Proposer’s responsibility to provide an appropriate level of staffing and provide appropriate tools
and vehicles necessary to support all facility audio-video installation, maintenance, and repair functions
during hours of operation and for response after normal working hours. Proposer shall maintain the
appropriate license and will comply with all other license, insurance and permit requirements of the City,
State and Federal governments, as well as all other requirements of the law.
SUPPORT FOR CURRENT EQUIPMENT
Proposers shall demonstrate the ability to successfully support existing hardware and software in use by the
City, including but not limited to Extron, Crestron, One Beyond, and Renkus-Heinz.
DATA CABLING SCOPE
In addition to audio-video systems, proposer shall demonstrate the ability to provide data cabling services
to the City, including low-voltage Ethernet indoor and outdoor plant installation, maintenance, and repair.
All work must be done in compliance with the specifications laid out in Exhibit X, Communications Cabling
Standards.
SERVICE AVAILABILITY The contractor shall have service available on a twenty-four-hour-a-day, seven-day-
a-week basis with a response time not to exceed the following:
EMERGENCIES………….. two-hour response time (remote), four-hour (on-site)
NON-EMERGENCIES…. four-hour response time (remote), next business day (on-site)
Time to respond shall commence when the City reports the problem to the Contractor’s designated
emergency phone number. Additionally, the contractor shall provide the ability to react immediately to
situations involving the health and safety of employees and/or the public and the comfort and operational
capability of any public meeting space. Routine repairs, service requests, or other non-urgent tasks shall be
completed by contractor staff within one (1) working day from the date of request by a City Representative,
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or as otherwise agreed to by a City Representative and contractor staff.
FACILITY HOURS
Scheduled maintenance and repairs shall typically occur during regular business hours.
FACILITIES TO BE MAINTAINED
Facility Address
Aquatics Center: 8 am – 5 pm 900 Southwood Drive
City Hall: 8 am – 5 pm 990 Palm Street
Water Treatment Plant: 8 am – 5 pm 1900 Stenner Creek Road
Water Resource Recovery Facility: 8 am – 5 pm 35 Prado Road
Water Distribution Pump Stations #1 12 Highland Drive, #2 141 Bressi Place, #3 1551
Bishop Street, #4 1555 Laurel Lane, #5 3 Highland
Drive, #6 1 Miossi Road, #7 500 Prado Road
Water Distribution Reservoirs 2255 Stenner Creek Road, 1 Miossi Drive
Utilities Main Office: 8 am – 5 pm 879 Morro Street
Whale Rock Reservoir: 8 am – 5 pm 108 E 13th Street (Cayucos)
Wastewater Collection Lift Stations #1 35 Prado Road, #2 264 Tank Farm Road,
#3 206 Margarita Ave, #4 3860 South Higuera,
#5 51 Foothill Blvd, #6 1625 Calle Joaquin,
#7 850 Fiero Lane, #8 1055 Isabella Way,
#9 175 Ventura Drive
CDD and Public Works Main Office: 8 am – 5 pm 919 Palm Street
Public Works Corporation Yard: 8 am – 5 pm 25 Prado Road
Parks and Recreation Office: 8 am – 5 pm 1341 Nipomo Street
Parking Office: 8 am – 5 pm 871 Marsh Street
Parking Garages Citywide: 8 am – 5 pm 842 Palm Street
919 Palm Street
871 Marsh Street
Ludwick Community Center: 8 am – 5 pm 864 Santa Rosa Street
Police Department 1042 Walnut St.
Police Department Annex 1106 Walnut
Fire Station 1 2160 Santa Barbara St.
Fire Station 2 136 North Chorro St.
Fire Station 3 1280 Laurel Lane
Fire Station 4 1395 Madonna Road
*The City owns and operates other facilities not listed above that may have periodic needs for electrical
services.
EMERGENCY ON-CALL SERVICE Should the City request the contractor to make unscheduled, emergency
audio-video system repairs, the City shall be responsible for labor and travel costs associated therewith.
These costs, as listed in the proposal, will be a critical part of the bid evaluation. Rates shall be firm for the
term of the contract. The City reserves the right to contract with others for trouble calls and repairs.
BILLABLE WORK The Contractor shall not bill for unnecessary repairs, for repairs that were not completed
satisfactorily, for repairs that did not fix an identified problem, or for facility visits that are made by staff
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unqualified to complete needed repairs.
STAFFING, WORKMANSHIP, AND QUALITY LEVEL The Contractor shall provide a staffing level to perform
on-call audio-video maintenance and repair services at designated City facilities in a thorough and
professional manner, so that the City is provided with reliable and high-quality electrical maintenance at all
times. All personnel performing work under this Contract shall be directly employed and supervised by the
Contractor. The Contractor shall provide management and technical supervision through competent
supervisors as required. The Contractor shall be responsible for the skills, methods, and actions of all
employees, subcontractors, and for all work done.
TOOLS AND EQUIPMENT The Contractor shall furnish and maintain all equipment necessary for properly
servicing and maintaining audio-video systems in City buildings. The City of San Luis Obispo reserves the
right to inspect equipment to be used to perform services under this contract. Any equipment determined
to be in poor condition must be replaced immediately, at the contractor’s expense. Failure to provide
suitable equipment for carrying out all requirements of this contract may be grounds for termination.
PARTS AND MATERIALS The Contractor shall furnish all parts and materials necessary for properly
maintaining and repairing audio-video systems in City buildings. Mark-up on parts and materials may not
exceed 10% of the Contractor’s cost. Invoices must identify the work performed, the cost of labor, the
parts/materials used, the parts/materials cost, and the parts/materials markup cost.
INSPECTIONS AND REMEDIES To ensure consistent quality of the work being performed, the City
Representative will conduct periodic inspections of audio-video systems to ensure compliance with the
contract specifications. The City may inspect at any time to confirm that the work performed meets the
specifications. If corrective work is required, the City will provide a written list of items, and the Contractor
shall correct deficiencies as directed. If deficiencies are not corrected promptly, the City may perform the
work using others and deduct the cost from the Contractor's payment.
DAMAGES The Contractor will be responsible for all damages to the facility or contents caused by the
Contractor, their staff, or subcontractors during the performance of their duties.
SAFETY & SECURITY The Contractor and staff shall follow all established safety procedures and take special
care not to endanger themselves or the public. The Contractor is responsible for the security of all doors at
the conclusion of work in each room. All exterior doors should remain locked at all times. Interior doors that
are found open or unlocked shall be left in the same position/condition in which they were found.
EMERGENCY SITUATIONS For medical or public safety emergencies occurring at the Facilities, call 9-1-1. For
all building maintenance emergencies (water leaks, etc.) c
REPORTS / INVOICING
All invoices should include a detailed summary of all work and repairs performed. If a repair exceeds $1,000,
a quote must be provided to the City before any work can be authorized.
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D. SCHEDULE
E. GENERAL TERMS AND CONDITIONS
PROPOSAL REQUIREMENTS
1. Requirement to Meet All Provisions. Each individual or firm submitting a proposal (bidder) shall
meet all the terms, and conditions of the Request for Proposals (RFP) project package. By virtue of
its proposal submittal, the bidder acknowledges agreement with and acceptance of all provisions of
the RFP specifications.
2. Proposal Submittal. Each proposal must be submitted on the form(s) provided in the specifications
and accompanied by any other required submittals or supplemental materials. Proposal documents
shall be submitted electronically via BidSync. However, if you can’t submit electronic please send
your bid copy in a sealed envelope to the Department of Finance, City of San Luis Obispo, 990 Palm
Street, San Luis Obispo, CA, 93401. To guard against premature opening, the proposal should be
clearly labeled with the proposal title, project number, name of bidder, and date and time of
proposal opening. No FAX submittals will be accepted.
3. Insurance Certificate. Each proposal must include a certificate of insurance showing:
a. The insurance carrier and its A.M. Best rating.
b. Scope of coverage and limits.
c. Deductibles and self-insured retention.
The purpose of this submittal is to generally assess the adequacy of the bidder’s insurance coverage
during proposal evaluation; as discussed under paragraph 12 below, endorsements are not required
until contract award. The City’s insurance requirements are detailed in Section E.
4. Proposal Quotes and Unit Price Extension. The extension of unit prices for the quantities indicated
and the lump sum prices quoted by the bidder must be entered in figures in the spaces provided on
the Proposal Submittal Form(s). Any lump sum bid shall be stated in figures. The Proposal Submittal
Form(s) must be totally completed. If the unit price and the total amount stated by any bidder for
any item are not in agreement, the unit price alone will be considered as representing the bidder’s
intention and the proposal total will be corrected to conform to the specified unit price.
5. Proposal Withdrawal and Opening. A bidder may withdraw its proposal, without prejudice prior to
the time specified for the proposal opening, by submitting a written request to the Director of
Finance for its withdrawal, in which event the proposal will be returned to the bidder unopened.
No proposal received after the time specified or at any place other than that stated in the “Notice
Inviting Bids/Requesting Proposals” will be considered. All proposals will be opened and declared
publicly. Bidders or their representatives are invited to be present at the opening of the proposals.
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6. Submittal of One Proposal Only. No individual or business entity of any kind shall be allowed to
make or file, or to be interested as the primary submitter in more than one proposal, except an
alternative proposal when specifically requested; however, an individual or business entity that has
submitted a sub-proposal to a bidder submitting a proposal, or who has quoted prices on materials
to such bidder, is not thereby disqualified from submitting a sub-proposal or from quoting prices to
other bidders submitting proposals.
7. Communications. All timely requests for information submitted in writing will receive a written
response from the City. Telephone communications with City staff are not encouraged but will be
permitted. However, any such oral communication shall not be binding on the City.
CONTRACT AWARD AND EXECUTION
8. Proposal Retention and Award. The City reserves the right to retain all proposals for a period of 60
days for examination and comparison. The City also reserves the right to waive non-substantial
irregularities in any proposal, to reject any or all proposals, to reject or delete one part of a proposal
and accept the other, except to the extent that proposals are qualified by specific limitations. See
the “special terms and conditions” in Section C of these specifications for proposal evaluation and
contract award criteria.
9. Competency and Responsibility of Bidder. The City reserves full discretion to determine the
competence and responsibility, professionally and/or financially, of bidders. Bidders will provide, in
a timely manner, all information that the City deems necessary to make such a decision.
10. Contract Requirement. The bidder to whom award is made (Contractor) shall execute a written
contract with the City within ten (10) calendar days after notice of the award has been sent by mail
to it at the address given in its proposal. The contract shall be made in the form adopted by the City
and incorporated in these specifications.
CONTRACT PERFORMANCE
11. The City’s contract terms and conditions that Contractor will be expected to execute and be bound by
are attached hereto as Exhibit A
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SPECIAL TERMS AND CONDITIONS
1. Contract Award. Subject to the reservations set forth in Paragraph 9 of Section B (General Terms
and Conditions) of these specifications, the contract will be awarded to the lowest responsible,
responsive proposer.
2. Sales Tax Reimbursement.
For sales occurring within the City of San Luis Obispo, the City receives sales tax revenues. Therefore,
for bids from retail firms located in the City at the time of proposal closing for which sales tax is
allocated to the City, 1% of the taxable amount of the bid will be deducted from the proposal by the
City in calculating and determining the lowest responsible, responsive proposer.
3. Labor Actions.
In the event that the successful proposer is experiencing a labor action at the time of contract award
(or if its suppliers or subcontractors are experiencing such a labor action), the City reserves the right
to declare said proposer is no longer the lowest responsible, responsive proposer and to accept the
next acceptable low proposal from a proposer that is not experiencing a labor action, and to declare
it to be the lowest responsible, responsive proposer.
4. Failure to Accept Contract.
The following will occur if the proposer to whom the award is made (Contractor) fails to enter into
the contract: the award will be annulled; any bid security will be forfeited in accordance with the
special terms and conditions if a proposer's bond or security is required; and an award may be made
to the next lowest responsible, responsive proposer who shall fulfill every stipulation as if it were
the party to whom the first award was made.
5. Non-Exclusive Contract. The City reserves the right to purchase the items listed in the Detail
Proposal Submittal Form, as well as any supplemental items, from other vendors during the contract
term.
6. Unrestrictive Brand Names. Any manufacturer's names, trade names, brand names or catalog
numbers used in the specifications are for the purpose of describing and establishing general quality
levels. Such references are not intended to be restrictive. Proposals will be considered for any brand
that meets or exceeds the quality of the specifications given for any item. In the event an alternate
brand name is proposed, supplemental documentation shall be provided demonstrating that the
alternate brand name meets or exceeds the requirements specified herein. The burden of proof as
to the suitability of any proposed alternatives is upon the proposer, and the City shall be the sole
judge in making this determination.
7. Delivery. Prices quoted for all supplies or equipment to be provided under the terms and conditions
of this RFP package shall include delivery charges, to be delivered F.O.B. San Luis Obispo by the
successful proposer and received by the City within 90 days after authorization to proceed by the
City.
8. Start and Completion of Work. Work on this project shall begin immediately after contract
execution and shall be completed within 90 calendar days thereafter, unless otherwise negotiated
with City by mutual agreement.
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9. Change in Work. The City reserves the right to change quantities of any item after contract award.
If the total quantity of any changed item varies by 25% or less, there shall be no change in the agreed
upon unit price for that item. Unit pricing for any quantity changes per item in excess of 25% shall
be subject to negotiation with the Contractor.
10. Submittal of References. Each proposer shall submit a statement of qualifications and references
on the form provided in the RFP package.
11. Statement of Contract Disqualifications. Each proposer shall submit a statement regarding any past
governmental agency bidding or contract disqualifications on the form provided in the RFP package.
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PROPOSAL CONTENT
FORM A: Cost Proposal
FORM B: Response to Technical Questions Form
FORM C: Wage Theft Prevention Bid Certification
FORM D: Certification of Acceptance of Terms of Agreements
FORM E: Non-Collusion Declaration
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FORM A: Cost Proposal to Furnish Audio-Video On-Call Services
______________________________________________________ (“Bidder”) hereby submits this Bid
Proposal to the City of San Luis Obispo (“The City”) for the above-referenced project (“Project”) in response
to the Notice Inviting Proposals and in accordance with the Contract Documents referenced therein.
1. Base Bid. Bidder proposes to perform and fully provide Audio-Video On-Call Services as specified in the
Contract Documents, for five years (5) for the prices in the attached Cost Proposal Schedule for Audio-
Video On-Call Maintenance Services and Repairs at City Facilities (“Base Bid”). Contractor may increase
rates by the CPI-Los Angeles region in [_______] beginning at the 1st day of the following year’s term.
2. Bidder’s Warranties. By signing and submitting this Bid Proposal, Bidder warrants the following:
Bidder has thoroughly examined the Contract Documents, and represents that, to the best of
Bidder’s knowledge there are no errors, omissions, or discrepancies in the Contract Documents.
Bidder has had the opportunity to examine the Worksite and local conditions at the Project location.
Bidder is fully qualified to perform the Work.
Bid has carefully reviewed this Bid Proposal and is solely responsible for any errors or omissions
contained in its completed Bid.
3. Award of Contract. By signing and submitting this Bid Proposal, Bidder agrees that if Bidder is awarded
the Contract for the Project, within ten (10) days following issuance of the notice of award to Bidder, Bidder
shall:
Enter into a Contract with The City in accordance with the terms of this Bid Proposal, by signing and
submitting to The City the Contract form included with the Contract Documents; and
Submit to The City the insurance certificate(s) and endorsement(s) as required by the Contract
Documents.
This bid proposal is hereby submitted on _______________________________
/s/___________________________ _______________________________
Name and Title
_____________________________ _______________________________
Company Name CSLB License # and Expiration Date
___________________________________________
CA Dept of Industrial Relations (DIR#) and Expiration Date
Address: ___________________ Email:_______________________
___________________ Phone:______________________
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FORM A
COST SCHEDULE
Contractor Name: _______________________________
Base Bid
Item #
Item Hourly Rate Comments
1 Standard Rate for Audio-Video Services –
Apprentice
2 Standard Rate for Audio-Video Services –
Journeyman
3 Rate for Other Audio-Video Services
(Describe in comments)
4 OT Rate for Audio-Video Services –
Apprentice
5 OT Rate for Audio-Video Services –
Journeyman
6 OT Rate for Other Audio-Video Services
(Describe in comments)
7 Saturday/Sunday/Holiday Rate – Apprentice
8 Saturday/Sunday/Holiday Rate -
Journeyman
9 Attach a separate equipment rate schedule
(Describe equipment hourly rate or flat rate)
10 Emergency Rate for Audio-Video Services –
Apprentice
11 Emergency Rate for Audio-Video Services –
Journeyman
12 Emergency Rate for Other Audio-Video
Services
(Describe in comments)
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FORM B
Response to Technical Questions
On-Call Audio-Video Services RFP
Please answer the following:
Experience and Qualifications (20pts)
1. How many years has your company been in business under its present business name?
2. Describe your previous experience providing electrical on-call services at like-sized public agencies
and/or private companies.
3. Describe management personnel's experience with accounts of similar size and scope, company
structure, and staff assigned to the resulting agreement.
4. State any instances of being disqualified, removed, or otherwise prevented from completing the terms
of any previous contracts over the past five (5) years. Give names, street addresses, and phone numbers,
and explain the circumstances.
Assessment of work quality, performance, and working relationships with current clients (15pts)
1. List three (3) like-sized customers that you have provided on-call electrical services to within the last three
(3) years. Provide the following information for each contact:
a. Customer Name
b. Customer Contact Name
c. Phone Number
d. Number of years your firm has provided electrical on-call services to Customer.
e. Names of facilities/locations where services have been provided.
Qualifications of Staff to be assigned (10pts)
1. Attach an organizational chart for your company, or the local office that would service this contract.
2. For the local office to serve this contract, list the following:
a. Total number of staff assigned to City of San Luis Obispo
b. Names and qualifications of key staff, including years in the industry and with your firm.
c. Number of new hires in the last six months.
3. Briefly describe your employee training program and requirements.
Well-organized communication systems and reporting capabilities that demonstrate an ability to
complete tasks efficiently and effectively, and do not require constant supervision by the City. (15pts)
1. Describe the systems your company uses to communicate between supervisors, office staff, and field
staff. Also, describe the systems you use to assign, track, and evaluate work performed by your employees.
2. Describe your existing customer service program, how you would monitor customer satisfaction, how
complaints will be resolved, and your plan for quality control.
3. Describe your communication plan to ensure proper communication between your representative and
the City’s representative.
4. Describe in detail your Safety Program.
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REFERENCES
Number of years engaged in providing the services included within the scope of the specifications under the
present business name: .
Describe fully the last three contracts performed by your firm that demonstrate your ability to provide the
services included in the scope of the specifications. Attach additional pages if required. The City reserves
the right to contact each of the references listed for further information regarding your firm's qualifications.
Reference No. 1:
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
Reference No. 2:
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
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Reference No. 3
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
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STATEMENT OF PAST CONTRACT DISQUALIFICATIONS
The proposer shall state whether it or any of its officers or employees who have a proprietary interest in it,
has ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state,
or local government project because of the violation of law, a safety regulation, or for any other reason,
including but not limited to financial difficulties, project delays, or disputes regarding work or product
quality, and if so to explain the circumstances.
Do you have any disqualifications as described in the above paragraph to declare?
Yes No
If yes, explain the circumstances.
Executed on at _______________________________________ under penalty of
perjury of the laws of the State of California, that the foregoing is true and correct.
______________________________________
Signature of Authorized Proposer Representative
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EXHIBIT A:
ON-CALL AGREEMENT FOR AUDIO-VIDEO SERVICES FOR PUBLIC PROJECTS
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on _____________ by and between
the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and [CONTRACTOR’S NAME IN
CAPITAL LETTERS], hereinafter referred to as Contractor.
W I T N E S S E T H
WHEREAS, on [DATE], requested proposals for On-Call Audio-Video Services
WHEREAS, pursuant to said request, Contractor submitted a proposal that was accepted by City for said
services.
NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter
contained, the parties hereto agree as follows:
1. Contract Term for On-Call Service Contracts. The term of this agreement shall be from the date this Agreement
is made and entered, as first written above. The City will contract services identified in this specification for four
years. Actual work may extend beyond the final date.
2. Cost Increases for On-Call Service Contracts and Contract Extension. Labor rates during the contract term may
be increased on an annual basis to reflect projected increases in labor costs and overhead provided those
increases are incorporated into the Contractor’s Proposal, which is incorporated into this agreement by
reference.
The term of the contract may be extended by mutual consent for an additional year. During this extended period,
labor rates may be increased to reflect increased labor rates and overhead provided the City is notified and those
increases are incorporated into the extension.
3. Work Delays. Should the Contractor be obstructed or delayed in the work required to be done hereunder by
changes in the work or by any default, act, or omission of the City, or by strikes, fire, earthquake, or any other
Act of God, or by the inability to obtain materials, equipment, or labor due to federal government restrictions
arising out of defense or war programs, then the time of completion may, at the City's sole option, be extended
for such periods as may be agreed upon by the City and the Contractor. In the event that there is insufficient
time to grant such extensions prior to the completion date of the contract, the City may, at the time of
acceptance of the work, waive liquidated damages that may have accrued for failure to complete on time, due to
any of the above, after hearing evidence as to the reasons for such delay, and making a finding as to the causes
of same.
4. Termination for Cause. If, during the term of the contract, the City determines that the Contractor is not
faithfully abiding by any term or condition contained herein, the City may notify the Contractor in writing of such
defect or failure to perform. This notice must give the Contractor a 10 (ten) calendar day notice of time
thereafter in which to perform said work or cure the deficiency.
If the Contractor has not performed the work or cured the deficiency within the ten days specified in the notice,
such shall constitute a breach of the contract and the City may terminate the contract immediately by written
notice to the Contractor to said effect. Thereafter, neither party shall have any further duties, obligations,
responsibilities, or rights under the contract except, however, any and all obligations of the Contractor's surety
shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the
termination thereof.
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In said event, the Contractor shall be entitled to the reasonable value of its services performed from the beginning
date in which the breach occurs up to the day it received the City's Notice of Termination, minus any offset from
such payment representing the City's damages from such breach. "Reasonable value" includes fees or charges for
goods or services as of the last milestone or task satisfactorily delivered or completed by the Contractor as may
be set forth in the Agreement payment schedule; compensation for any other work, services or goods performed
or provided by the Contractor shall be based solely on the City's assessment of the value of the work-in-progress
in completing the overall workscope.
The City reserves the right to delay any such payment until completion or confirmed abandonment of the project,
as may be determined in the City's sole discretion, so as to permit a full and complete accounting of costs. In no
event, however, shall the Contractor be entitled to receive in excess of the compensation quoted in its proposal.
5. Termination for Convenience. The City also reserves the right to terminate the contract for convenience,
providing a 30 (thirty) calendar day notice, at any time upon a determination by the Director that termination of
the contract is in the best interest of the City. Upon termination notice from the City, Contractor must, unless
otherwise directed, cease work and follow the City’s directions as to work in progress and finished goods. For
termination of any services pursuant to this Agreement, the City’s liability will be the lesser of a reasonable price
for the services rendered prior to termination.
6. Ability to Perform. The Contractor warrants that it possesses, or has arranged through subcontracts, all capital
and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in
compliance with any and all applicable federal, state, county, city, and special district laws, ordinances, and
regulations.
7. Sub-contract Provisions. No portion of the work pertinent to this contract shall be subcontracted without
written authorization by the City, except that which is expressly identified in the Contractor’s proposal. Any
substitution of sub-Contractors must be approved in writing by the City. For any sub-contract for services in
excess of $25,000, the subcontract shall contain all provisions of this agreement.
8. Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise dispose of the contract, or
its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind
without the previous written consent of the City.
9. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to ascertain that the
services of the Contractor are being performed in accordance with the requirements and intentions of this
contract. All work done and all materials furnished, if any, shall be subject to the City's inspection and approval.
The inspection of such work shall not relieve Contractor of any of its obligations to fulfill its contract
requirements.
10. Record Retention and Audit. For the purpose of determining compliance with various laws and regulations as
well as performance of the contract, the Contractor and sub-Contractors shall maintain all books, documents,
papers, accounting records and other evidence pertaining to the performance of the contract, including but not
limited to the cost of administering the contract. Materials shall be made available at their respective offices at
all reasonable times during the contract period and for three years from the date of final payment under the
contract. Authorized representatives of the City shall have the option of inspecting and/or auditing all records.
For Federally funded projects, access to records shall also include authorized representatives of the State and
Federal government. Copies shall be furnished if requested.
11. Conflict of Interest. The Contractor shall disclose any financial, business, or other relationship with the City that
may have an impact upon the outcome of this contract, or any ensuing City construction project. The Contractor
shall also list current clients who may have a financial interest in the outcome of this contract, or any ensuing
City construction project which will follow. The Contractor staff shall provide a Conflict of Interest Statement
where determined necessary by the City.
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The Contractor covenants that it presently has no interest, and shall not acquire any interest—direct, indirect or
otherwise—that would conflict in any manner or degree with the performance of the work hereunder. The
Contractor further covenants that, in the performance of this work, no sub-Contractor or person having such an
interest shall be employed. The Contractor certifies that no one who has or will have any financial interest in
performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance
of the work hereunder, the Contractor shall at all times be deemed an independent Contractor and not an agent
or employee of the City.
12. Rebates, Kickbacks or Other Unlawful Consideration. The Contractor warrants that this contract was not
obtained or secured through rebates, kickbacks or other unlawful consideration, either promised or paid to any
City employee. For breach or violation of the warranty, the City shall have the right in its discretion; to terminate
the contract without liability; to pay only for the value of the work actually performed; to deduct from the
contract price; or otherwise recover the full amount of such rebate, kickback or other unlawful consideration.
13. Covenant Against Contingent Fees. The Contractor warrants by execution of this contract that no person or
selling agency has been employed, or retained, to solicit or secure this contract upon an agreement or
understanding, for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or
bona fide established commercial or selling agencies maintained by the Contractor for the purpose of securing
business. For breach or violation of this warranty, the City has the right to annul this contract without liability;
pay only for the value of the work actually performed, or in its discretion, to deduct from the contract price or
consideration, or otherwise recover the full amount of such commission, percentage, brokerage, or contingent
fee.
14. Compliance with Laws and Wage Rates. The Contractor shall keep itself fully informed of and shall observe and
comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations
and adopted codes during its performance of the work. This includes compliance with prevailing wage rates and
their payment in accordance with California Labor Code. For purposed of this paragraph, “construction” includes
work performed during the design and preconstruction phases of construction, including but not limited to,
inspection and land surveying work.
15. Payment of Taxes. The contract prices shall include full compensation for all taxes that the Contractor is
required to pay within the scope of Contractor’s performance of the contracted services.
16. Permits, Licenses and Filing Fees. The Contractor shall procure all permits and licenses, pay all charges and fees,
and file all notices as they pertain to the completion of the Contractor’s work. The City will pay all application
fees for permits required for the completion of the project including building and regulatory permit application
fees. Contractor will provide a 10 day notice for the City to issue a check.
17. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety established by
OSHA and the California Division of Industrial Safety.
18. Public and Employee Safety. Whenever the Contractor's operations create a condition hazardous to the public
or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences,
temporary railings, barricades, lights, signs and other devices and take such other protective measures as are
necessary to prevent accidents or damage or injury to the public and employees.
19. Preservation of City Property. The Contractor shall provide and install suitable safeguards, approved by the
City, to protect City property from injury or damage. If City property is injured or damaged resulting from the
Contractor's operations, it shall be replaced or restored at the Contractor's expense. The facilities shall be
replaced or restored to a condition as good as when the Contractor began work.
20. Immigration Act of 1986. The Contractor warrants on behalf of itself and all sub-Contractors engaged for the
performance of this work that only persons authorized to work in the United States pursuant to the Immigration
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Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work
hereunder.
21. Contractor Non-Discrimination. In the award of subcontracts or in performance of this work, the Contractor
agrees that it will not engage in, nor permit such sub-Contractors as it may employ, to engage in discrimination
in employment of persons on any basis prohibited by State or Federal law.
22. Accuracy of Specifications. The specifications for this project are believed by the City to be accurate and to
contain no affirmative misrepresentation or any concealment of fact. Contractors are cautioned to undertake an
independent analysis of any test results in the specifications, as City does not guaranty the accuracy of its
interpretation of test results contained in the specifications package. In preparing its proposal, the Contractor
and all sub-Contractors named in its proposal shall bear sole responsibility for proposal preparation errors
resulting from any misstatements or omissions in the specifications that could easily have been ascertained by
examining either the project site or accurate test data in the City's possession. Although the effect of
ambiguities or defects in the specifications will be as determined by law, any patent ambiguity or defect shall
give rise to a duty of Contractor to inquire prior to proposal submittal. Failure to so inquire shall cause any such
ambiguity or defect to be construed against the Contractor. An ambiguity or defect shall be considered patent if
it is of such a nature that the Contractor, assuming reasonable skill, ability and diligence on its part, knew or
should have known of the existence of the ambiguity or defect. Furthermore, failure of the Contractor or sub-
Contractors to notify City in writing of specification defects or ambiguities prior to proposal submittal shall waive
any right to assert said defects or ambiguities subsequent to submittal of the proposal.
To the extent that these specifications constitute performance specifications, the City shall not be liable for costs
incurred by the successful Contractor to achieve the project’s objective or standard beyond the amounts provided
therefor in the proposal.
In the event that, after awarding the contract, any dispute arises as a result of any actual or alleged ambiguity or
defect in the specifications, or any other matter whatsoever, Contractor shall immediately notify the City in writing,
and the Contractor and all sub-Contractors shall continue to perform, irrespective of whether or not the ambiguity
or defect is major, material, minor or trivial, and irrespective of whether or not a change order, time extension, or
additional compensation has been granted by City. Failure to provide the hereinbefore described written notice
within one (1) working day of Contractor's becoming aware of the facts giving rise to the dispute shall constitute
a waiver of the right to assert the causative role of the defect or ambiguity in the plans or specifications concerning
the dispute.
23. Hold Harmless and Indemnification. To the fullest extent permitted by law (including, but not limited to
California Civil Code Sections 2782 and 2782.8), Contractor shall indemnify, defend, and hold harmless the City,
and its elected officials, officers, employees, volunteers, and agents (“City Indemnitees”), from and against any
and all causes of action, claims, liabilities, obligations, judgments, or damages, including reasonable legal
counsels’ fees and costs of litigation (“claims”), arising out of the Contractor’s performance or Contractor’s
failure to perform its obligations under this Agreement or out of the operations conducted by Contractor,
including the City’s active or passive negligence, except for such loss or damage arising from the sole negligence
or willful misconduct of the City. In the event the City Indemnitees are made a party to any action, lawsuit, or
other adversarial proceeding arising from Contractor’s performance of this Agreement, the Contractor shall
provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of
defense, including reasonable legal fees, incurred in defense of such claims.
24. Non-Exclusive Contract. The City reserves the right to contract for the services listed in this proposal from other
Contractors during the contract term.
25. Standards. Documents shall conform to City Standards and City furnished templates shall be used.
26. Contractor Endorsement. Technical reports, plans and specifications shall be stamped and signed by the
Contractor where required.
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27. Required Deliverable Products and Revisions. The Contractor will be required to provide documents addressing
all elements of the workscope. Plans shall be prepared using City’s standardized title blocks and coversheets. Draft
plans may be submitted for review using either the full 24x36, 22x34, or a reduced 11x17 format. Contractor shall
ensure that drawings and notes are clearly legible if using the reduced format. Specifications and bid documents
shall conform to standard City formats unless authorized. The City’s current Standard Specifications and Engineering
Standards must be incorporated where applicable.
City staff will review any documents or materials provided by the Contractor and, where necessary, the Contractor
will respond to staff comments and make such changes as deemed appropriate. Submittals shall include the
previous marked up submittal (returned to the Contractor) to assist in the second review. Changes shall be made
as requested or a notation made as to why the change is not appropriate.
2 copies of the draft preliminary reports, technical studies and 50% plans and estimate
1 copy of the final preliminary reports, technical studies plus markups
3 copies of the 90% plans, specifications and estimate plus 50% markups
1 copy of the 100% plans, specifications and estimate plus 90% markups
1 copy of the final plans, specifications and estimates plus 100% markups
1 copy of the final record drawings after construction
Draft reports and plan submittals shall be submitted as paper copies.
Final documents shall be submitted as camera-ready original, unbound, each page printed on only one side,
including any original graphics in place and scaled to size, ready for reproduction AND one electronic copy
submitted in Adobe Acrobat format including all original stamps and signatures.
In the event the City will be compiling the final specifications, incorporating the Contractor’s work, the final
specifications will also be required to be submitted in Microsoft Word format.
In the event the City will be completing the Record Drawings, the final plans will also be required to be submitted
in AutoCAD.
Electronic files shall be submitted on CD and all files must be compatible with the Microsoft operating system.
Each CD must be clearly labeled and have a printed copy of the directory. Files may be emailed to the City in lieu
of putting them on CD.
28. Ownership of Materials. Upon completion of all work under this contract, ownership and title to all reports,
documents, plans (including PDFs and AutoCAD files), specifications, and estimates produced as part of this
contract will automatically be vested in the city and no further agreement will be necessary to transfer
ownership to the City. The Contractor shall furnish the City all necessary copies of data needed to complete the
review and approval process.
It is understood and agreed that all calculations, drawings and specifications, whether in hard copy or machine
readable form, are intended for one-time use in the construction of the project for which this contract has been
entered into.
The Contractor is not liable for claims, liabilities, or losses arising out of, or connected with the modification, or
misuse by the City of the machine-readable information and data provided by the Contractor under this
agreement. Further, the Contractor is not liable for claims, liabilities, or losses arising out of, or connected with
any use by City of the project documentation on other projects, except such use as may be authorized in writing
by the Contractor.
29. Release of Reports and Information. Any reports, information, data, or other material given to, prepared by or
assembled by the Contractor as part of the work or services under these specifications shall be the property of City
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and shall not be made available to any individual or organization by the Contractor without the prior written approval
of the City.
The Contractor shall not issue any news release or public relations item of any nature, whatsoever, regarding work
performed or to be performed under this contract without prior review of the contents thereof by the City and
receipt of the City’s written permission.
30. Copies of Reports and Information. If the City requests additional copies of reports, drawings, specifications, or
any other material in addition to what the Contractor is required to furnish in limited quantities as part of the
work or services under these specifications, the Contractor shall provide such additional copies as are requested,
and City shall compensate the Contractor for the costs of duplicating of such copies at the Contractor's direct
expense.
31. Attendance at Meetings and Hearings. As part of the workscope and included in the contract price is
attendance by the Contractor at up to 1 public meeting to present and discuss its findings and recommendations.
Contractor shall attend as many "working" meetings with staff as necessary in performing workscope tasks.
32. Requests for Review. The Contractor shall respond to all requests for submittal review or contractor RFI’s within
two weeks of receipt of the information from the City.
33. Project Proposal Submittal. Upon completion of the project scoping meeting, the Contractor shall submit a
proposed workscope, compensation and schedule within 10 working days. The cost proposal shall include all
costs including miscellaneous direct cost items.
34. Contractor Invoices. The Contractor shall deliver a monthly invoice to the City, itemized by project work phase
or, in the case of on-call contracts, by project title. Invoice must include a breakdown of hours billed and
miscellaneous charges and any sub-Contractor invoices, similarly broken down, as supporting detail. For
purposes of City fiscal year auditing, invoices for work through June 30 th of any year must be delivered to the City
by the second full week of July. If the June invoice is not received, the consult must combine work completed in
June and July into one July invoice for payment.
35. Payment. For providing services as specified in this Agreement, City will pay and Contractor shall receive
therefore compensation in a total sum not to exceed the individual agreed upon project fee. Should the
Contractor’s designs, drawings or specifications contain errors or deficiencies, the Contractor shall be required to
correct them at no increase in cost to the City.
For on-call services, the City will pay and the Contractor shall receive compensation as agreed to on a project by
project basis.
The Contractor shall be reimbursed for hours worked at the hourly rates set forth in Contractor’s proposal attached
to this agreement. Hourly rates include direct salary costs, employee benefits, overhead and fee. In addition, the
Contractor shall be reimbursed for direct costs other than salary and vehicle cost that have been identified and
are attached to this agreement. The Contractor’s personnel shall be reimbursed for per diem expenses at a rate
not to exceed that currently authorized for State employees under State Department of Personnel Administration
rules.
36. Payment Terms. The City's payment terms are 30 days from the receipt and approval by the City of an original
invoice and acceptance by the City of the materials, supplies, equipment or services provided by the Contractor
(Net 30).
37. Resolution of Disputes. Any dispute, other than audit, concerning a question of fact arising under this contract
that is not disposed of by agreement shall be decided by a committee consisting of the City’s Project Manager
and the City Director of Public Works, who may consider written or verbal information submitted by the
Contractor. Not later than thirty days after completion of all deliverables necessary to complete the plans,
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specifications and estimate, the Contractor may request review by the City Council of unresolved claims or
disputes, other than audit, in accordance with Chapter 1.20 Appeals Procedure of the Municipal Code.
Any dispute concerning a question of fact arising under an audit of this contract that is not disposed of by
agreement, shall be reviewed by the City’s Finance Director. Not later than 30 days after issuance of the final audit
report, the Contractor may request a review by the City’s Chief Fiscal Officer of unresolved audit issues. The
request for review must be submitted in writing.
Neither the pendency of a dispute, nor its consideration by the City will excuse the Contractor from full and timely
performance in accordance with the terms of this contract.
38. Disadvantaged Business Enterprise (DBE) Use for Federally Funded Projects . This agreement is subject to Title
49, Part 26 Code of Federal Regulations entitled “Participation by Disadvantaged Business Enterprises in
Department of Transportation Financial Assistance Programs” when project work is for a federally funded
project. In order to ensure the State Department of Transportation achieves its federally mandated statewide
overall DBE goal, the City encourages the participation of DBEs as defined in 49 CFR 26 in the performance of this
agreement. The City will make a determination on a project by project basis for reasonably expected DBE
participation to compete for the sub-consulting opportunities in this agreement. The Contractor is responsible
to be fully informed regarding the requirements of 49 CFR, Part 26.
The Contractor shall notify the City of any changes to its anticipated DBE participation on federally funded projects,
maintain records of DBE usage and complete and submit to the City the final report of DBE utilization prior to
receiving final payment. Records shall show the name and business address of each DBE and the total dollar
amount actually paid to each.
The Contractor shall pay all sub-Contractors within 10 calendar days from receipt of each payment made to the
Contractor by the City.
The Contractor shall carry out applicable requirements of Title 49 CFR 26 in the award and administration of US
DOT assisted agreements. Failure by the Contractor to carry out these requirements is a material breach of this
agreement, which may result in the termination of this agreement or such other remedy as the City deems
appropriate.
39. Agreement Parties.
City: [Project Manager]
City of San Luis Obispo
919 Palm Street
San Luis Obispo, CA 93401
Contractor:
All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or
certified mail addressed as shown above.
40. Incorporation by Reference. City Request for Qualifications and Contractor's proposal dated [DATE], is attached
to and made a part of this Agreement. Should there be any conflict between terms set forth in the City Request
for Qualifications for Audio-video Services [_____] and Contractor’s proposal dated [DATE], the terms in this
agreement and City Request for Qualifications Specification No. [___]will govern.
41. Amendments. Any amendment, modification or variation from the terms of this Agreement shall be in writing
and shall be effective only upon approval by the City Engineer.
42. Working Out of Scope. If, at any time during the project, the Contractor is directed to do work by persons other
than the City Project Manager and the Contractor believes that the work is outside of the scope of the original
contract, the Contractor shall inform the Project Manager immediately. If the Project Manager and Contractor
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both agree that the work is outside of the project scope and is necessary to the successful completion of the
project, then a fee will be established for such work based on Contractor's hourly billing rates or a lump sum
price agreed upon between the City and the Contractor. Any extra work performed by Contractor without prior
written approval from the City Project Manager shall be at Contractor's own expense.
43. Complete Agreement. This written agreement, including all writings specifically incorporated herein by
reference, shall constitute the complete agreement between the parties hereto. No oral agreement,
understanding or representation not reduced to writing and specifically incorporated herein shall be of any force
or effect, nor shall any such oral agreement, understanding or representation be binding upon the parties
hereto. For and in consideration of the payments and agreements hereinbefore mentioned to be made and
performed by City, Contractor agrees with City to do everything required by this Agreement, the said
specification and incorporated documents.
44. Governing Law. Any action arising out of this Agreement shall be brought in the Superior Court of San Luis
Obispo County, California, regardless of where else venue may lie. The validity, interpretation, construction and
performance of this Agreement, and all acts and transactions pursuant hereto and the rights and obligations of
the Parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of
California, without giving effect to principles of conflicts of law.
45. Authority to Execute Agreement. Both City and Contractor do covenant that each individual executing this
agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such
party.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above
written.
CITY OF SAN LUIS OBISPO: CONTRACTOR:
___________________________________
Name of Company
___________________________________
APPROVED AS TO FORM:
___________________________________
City Attorney
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EXHIBIT A - CONTRACTOR BID PROPOSAL
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INSURANCE REQUIREMENTS
Contractors
Without limiting Contractor’s indemnification of City, and prior to commencement of work, Contractor shall
obtain, provide, and maintain at its own expense during the term of this Agreement, policies of insurance
of the types and amounts described below and in a form that is satisfactory to City.
General liability insurance. Contractor shall maintain commercial general liability insurance with
coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less
than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal
injury, and property damage. The policy must include contractual liability that has not been
amended. Any endorsement restricting standard ISO “insured contract” language will not be
accepted.
Automobile liability insurance. Contractor shall maintain automobile insurance at least as broad
as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all
activities of the Contractor arising out of or in connection with Work to be performed under this
Agreement, including coverage for any owned, hired, non-owned, or rented vehicles, in an
amount not less than $1,000,000 combined single limit for each accident.
Umbrella or excess liability insurance. [If required to meet higher limits]. Contractor may
obtain and maintain an umbrella liability insurance policy with limits that will provide bodily
injury, personal injury, and property damage liability coverage, including commercial
general liability, automobile liability, and employer’s liability. Such policy or policies shall
include the following terms and conditions:
• A drop-down feature requiring the policy to respond if any primary insurance that would
otherwise have applied proves to be uncollectible in whole or in part for any reason, other
than bankruptcy or insolvency of said primary insurer;
• “Pay on behalf of” wording as opposed to “reimbursement”;
• Concurrency of effective dates with primary policies.
Excess insurance. Should Contractor obtain and maintain an excess liability policy, such policy shall be
excess over commercial general liability, automobile liability, and employer’s liability policies. Such policy or
policies shall include wording that the excess liability policy follows the terms and conditions of the
underlying policies.
Workers’ compensation insurance. Contractor shall maintain Workers’ Compensation
Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least
$1,000,000). Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation
endorsement in favor of City, its officers, agents, employees, and volunteers
Notice of cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to
provide the City with a thirty (30) day notice of cancellation (except for nonpayment for
which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
If any of the Contractor’s insurers are unwilling to provide such notice, then Contractor shall have the
responsibility of notifying the City immediately in the event of Contractor’s failure to renew any
of the required insurance coverages or insurer’s cancellation or non-renewal.
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Additional insured status. General liability, automobile liability, and umbrella/excess liability
insurance policies shall provide or be endorsed to provide that City and its officers, officials,
employees, agents, and volunteers shall be additional insureds under such policies.
Prohibition of undisclosed coverage limitations. None of the coverages required herein
shall comply with these requirements if they include any limiting endorsement of any
kind that has not been first submitted to City and approved of in writing.
Separation of insureds. A severability of interests provision must apply for all additional
insureds ensuring that Contractor’s insurance shall apply separately to each insured against whom
claim is made or suit is brought, except with respect to the insurer’s limits of liability. The
policy(ies) shall not contain any cross-liability exclusions.
Pass through clause. Contractor agrees to ensure that its subcontractors, subcontractors, and
any other party who is brought onto or involved in the project/service by Contractor (hereinafter
collectively “subcontractor”), provide the same minimum insurance coverage and endorsements required
of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for
ensuring that such coverage is provided in conformity with the requirements of this section. However, in
the event Contractor’s subcontractor cannot comply with this requirement, which proof must be submitted
to the City, Contractor shall be required to ensure that its subcontractor provide and maintain insurance
coverage and endorsements sufficient to the specific risk of exposure involved with subcontractor’s scope
of work and services, with limits less than required of the Contractor, but in all other terms consistent with
the Contractor’s requirements under this agreement. This provision does not relieve the Contractor of its
contractual obligations under the agreement and/or limit its liability to the amount of insurance
coverage provided by its subcontractors. This provision is intended solely to provide Contractor
with the ability to utilize a subcontractor who may be otherwise qualified to perform the work or services
but may not carry the same insurance limits as required of the Contractor under this
agreement given the limited scope of work or services provided by the subcontractor. Contractor
agrees that upon request, all agreements with subcontractors, and others engaged in the
project, will be submitted to City for review.
City’s right to revise specifications. The City reserves the right at any time during
the term of the contract to change the amounts and types of insurance required by giving the
Contractor ninety (90) days advance written notice of such change. If such change results in
substantial additional cost to the Contractor, the City and Contractor may renegotiate Contractor’s
compensation.
Self-insured retentions. Any self-insured retentions must be declared to and approved by
City. City reserves the right to require that self-insured retentions be eliminated,
lowered, or replaced by a deductible, or require proof of ability to pay losses and related
investigations, claim administration, and defense expenses within the retention period through
confirmation from the underwriter.
Timely notice of claims. Contractor shall give City prompt and timely notice of claims made
or suits instituted that arise out of or result from Contractor’s performance under this Agreement,
and that involves or may involve coverage under any of the required liability policies.
Additional insurance. Contractor shall also procure and maintain, at its own cost and expense,
any additional kinds of insurance, which, in its own judgment, may be necessary for its proper
protection and prosecution of the Work.
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Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing
maintenance of the required insurance coverage, as well as endorsements affecting general liability
coverage.. All endorsements are to be received and approved by the City before work commences.
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Item 6f
Department: Fire
Cost Center: 8599
For Agenda of: 1/13/2026
Placement: Consent
Estimated Time: N/A
FROM: Todd Tuggle, Fire Chief
Prepared By: Nicole Vert, Business Analyst
SUBJECT: AUTHORIZE THE FIRE DEPARTMENT TO ACCEPT THE PRODUCT OF
A FIRE SAFE COUNCIL GRANT, WHICH IS PREPARATION OF A ONE-
TIME PROFESSIONAL SERVICE AGREEMENT FOR EVACUATION
DATA DEVELOPMENT AND INITIAL MODELING SERVICES FOR
CITYWIDE EVACUATION PLANNING
RECOMMENDATION
Authorize the Fire Department to accept the award from the San Luis Obispo County Fire
Safe Council for a one-time professional service agreement for evacuation data
development and initial modelling services for Citywide evacuation planning with a value
of $30,000.
POLICY CONTEXT
The City of San Luis Obispo’s Financial Management Manual, Section 740 - Grant
Management Policy states that Council shall consider approval of all grant applications in
excess of $5,000 and delegate receipt and contract execution to the City Manager.
DISCUSSION
State, federal, and non-profit grants are occasionally offered to assist local governments
with the financial impacts associated with daily operations and/or mandated programs.
The Fire Department actively seeks out these opportunities to enhance t he effectiveness
of the Department while increasing fiscal sustainability for the City. The San Luis Obispo
County Fire Safe Council received a grant that which is in line with these goals and
addresses a current need for the City: the California Climate Investment grant program.
Fire Safe Council is a statewide organization with approximately 300 local chapters in
California. The organization provides support for training, technical assistance plus helps
communities navigate federal and state wildfire grants. The local San Luis Obispo County
Fire Safe Council is a collaborative group dedicated to creating a Fire Safe environment
through education, partnerships, and action by working with local municipalities in San
Luis Obispo County, including the City of San Luis Obispo. The San Luis Obispo County
Fire Safe Council has received the grant award to develop and enhance resiliency in local
Page 77 of 525
Item 6f
communities. This grant was awarded from the California Climate Investment, a state
program that uses revenue from the state’s Cap-and-Invest greenhouse gas reduction
system to fund climate related projects.
As part of the effort to create resiliency in San Luis Obispo County, the Fire Safe Council
has partnered with the City to create an Evacuation Analysis in alignment with AB -747
legislation. The 2019 legislation updates the requirement for the “Safety Element” of local
general plans to strengthen local hazard planning, including wildfire and other emergency
scenarios. The update must identify evacuation routes and analyze their capacity, safety
and viability under a range of emergency scenarios. This law is intended to ensure that
local hazard planning is current, thorough, and integrated into general planning
processes, helping communities better prepare for and respond to emergencies.
The resulting work product will be from a collaborative effort between the City and the
Fire Safe Council on developing enhanced evacuation modeling to improve planning and
decision-making for a range of emergency scenarios. This modeling incorporates updated
population estimates, urban density conditions, and roadway capacity, including the
effects of existing and planned traffic-calming measures. The system can be tailored to
evaluate different hazard types such as wildfire, flooding, or a Citywide evacuation
associated with an incident at Diablo Canyon Power Plant.
The fully scalable analysis of evacuations for a single neighborhood zone, groups of
adjacent zones, simultaneous multi-zone operations, or a full Citywide evacuation will be
consolidated into a single Evacuation Analysis document to meet the requirements of AB -
747. The evacuation analysis will also provide staff with an enhanced understanding of
evacuation timelines, identify potential bottlenecks, and develop more effective public
safety strategies, ultimately improving the City’s overall readiness and community
resilience. Additionally, tools will be incorporated into the operations of the Fire
Department to enhance the effectiveness of incident management. Tools such as detailed
evacuation zone assessments, trigger points for evacuations due to wildfire threats , and
incorporation of target hazards into Computer Aided Dispatching response interfaces will
provide incident commanders with important intelligence during emergencies.
The evacuation data development and modeling study supports the City’s Vision Zero
goals by providing analytical insight into how the transporta tion network performs under
high stress, high volume emergency conditions, which represent some of the highest-risk
scenarios for traffic related fatalities and serious injuries. By identifying evacuation routes,
congestion points, and roadway constraints in advance, the analysis enables the City of
San Luis Obispo to anticipate and reduce conditions that increase crash risk during
evacuations, including conflicting traffic movements, excessive speeds, and driver error.
This planning-level analysis supports Vision Zero principles by informing safer evacuation
strategies and future transportation and emergency planning decisions that prioritize
safety, predictability, and accommodation of human behavior during emergencies .
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Item 6f
Previous Council or Advisory Body Action
On October 21, 2025, the City Council authorized the fire department to accept a Federal
Emergency Management Agency (FEMA) Fire Prevention and Safety (FP&S) grant to
begin a program of public outreach and education regarding home hardening for wildfire
preparedness. This authorized the City Manager, or designee, to execute the grant
documents and approve the budget changes necessary.
Public Engagement
This item is on the agenda for the January 13, 2026, City Council meeting and will follow
all required postings and notifications. The public will have an opportunity to comment on
this item at or before the meeting.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in
this report, because the action does not constitute a “Project” under CEQA Guidelines
Sec. 15378. If the work associated with the grant funding requires environmental review,
staff will not proceed with the project until a review has been completed.
FISCAL IMPACT
Budgeted: No Budget Year: 2025-26
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ N/A $ $ $
State
Federal
Fees
Other:
Total $ N/a $ $
There are no financial impacts directly associated with the acceptance of the grant
product. The funds will be paid directly to the San Luis Obispo County Fire Safe Council
for the work and the City will receive the results. There is not a required match and there
will not be a financial impact to the City by accepting this grant.
ALTERNATIVES
Council could decide not to accept the grant product. Not approving acceptance of
the grant product will prevent the City from receiving the full analysis.
Page 79 of 525
Page 80 of 525
Item 6g
Department: Community Development
Cost Center: 4006
For Agenda of: 1/13/2026
Placement: Consent
Estimated Time: N/A
FROM: Timmi Tway, Community Development Director
Prepared By: Brian Leveille, Principal Planner
SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 1753 (2025
SERIES) REPEALING AND REPLACING CHAPTER 14.01 OF THE
MUNICIPAL CODE (HISTORIC PRESERVATION ORDINANCE) TO
INCLUDE RECOMMENDED UPDATES AND AMENDMENTS
RECOMMENDATION
Adopt Ordinance No. 1753 (2025 Series) entitled, “An Ordinance of the City
Council of the City of San Luis Obispo, California, repealing Chapter 14.01
(Historic Preservation Ordinance) of the Municipal Code in its entirety and
introducing and adopting a replacement Chapter 14.01 to include
recommended updates and amendments as reflected in the attached
Exhibit A (CODE-0758-2025)”
POLICY CONTEXT
General Plan
Various policies and programs in the Cultural Heritage (Chapter 3) section of the
Conservation and Open Space Element support the City’s Historic Preservation Program,
including the identification and preservation of historic resources. Land Use Element
(LUE) Policy 12.4 also describes the intended use of the Historic Preservation Ordinance
and Historic Preservation Program Guidelines by the City Council, Cultural Heritage
Committee, and other advisory bodies in the review of projects within a historic district or
on property with a listed historic resource to ensure protection of historic resources .
Additionally, the Historic Context Statement provides information to support the review
and identification of resources. The most relevant policies to the Historic Resources
Inventory update effort are listed below:
Conservation and Open Space Element (COSE) Goal 3.2: The City will expand
community understanding, appreciation and support for historic and architectural
resource preservation to ensure long-term protection of cultural resources.
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Item 6g
Land Use Element (LUE) Implementation Policy 12.4: Historic Preservation
Ordinance and Guidelines are used by the staff, City Council, Planning
Commission, Cultural Heritage Committee, and other advisory bodies in the
review of projects within a historic district or on property with a listed historic
resource to ensure protection of historic resources. The City’s Historic Context
Statement provides information to support the review and identification of
resources.
Major City Goals
An update of the Historic Resources Inventory, beginning with updates of the Historic
Preservation Ordinance and Historic Context Statement was included as an
implementation task of the City’s Major City Goal for Cultural Vitality, Economic
Resilience, and Fiscal Sustainability in the 2023-25 Financial Plan. Continued work to
complete the Project was included in the 2025-27 Financial plan.
Municipal Code Chapter 14.01
The Historic Preservation Ordinance (Chapter 14.01 of the Municipal Code) implements
General Plan policies for preservation and includes various provisions for the
identification and protection of historic resources including significance criteria, historic
classifications, review processes, and requirements that apply to proposed alterations to
historic resources including the Secretary of Interior Standards and Historic Preservation
Program Guidelines. For this project, various updates are focused on clas sifications,
significance criteria, and review processes for historic significance determinations to set
the framework for the upcoming update of the Historic Resources Inventory.
DISCUSSION
This item represents Phase 1 of the project to update the City’s Historic Resources
Inventory, and the recommended amendments provide an updated framework and
guidance for the City’s review of the current Historic Resources Inventory, future surveys,
and for continued effective implementation of the City’s Historic Preservation Program
into the future. Once the Historic Resources Inventory update is completed (Phase 2), the
City will have achieved an updated inventory providing certai nty that listed properties
meet currently adopted criteria, along with more clarity and information to guide decisions
when reviewing proposed alterations on historically listed properties. This will result in
reduced timeframes for review, more certainty for property owners on how to approach
alterations, reduced costs, and streamlined project review timeframes.
Previous Council or Advisory Body Action
Cultural Heritage Committee Review
On September 29, 2025, the Cultural Heritage Committee held a special meeting to
review the draft updates to the Historic Preservation Ordinance and Historic Context
Statement as part of Phase 1 of the Project. The Cultural Heritage Committee voted
(5-0) to recommend the updates to the Planning Commission with minor modifications
that were incorporated into the draft update documents.
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Item 6g
Planning Commission Review
On October 22, 2025, the Planning Commission, on a 4-0 vote, recommended the City
Council adopt the recommended updates. No changes were made to the Cultural
Heritage Committee recommended updates (Attachment G, Planning Commission
Resolution No. PC 1111-2025).
City Council Review
On December 2, 2025, the City Council unanimously voted (4:0) to introduce the
ordinance to repeal and replace the Historic Preservation Ordinance (Attachment A) and
adopting a resolution approving updates to the Historic Context Statement.
Next Steps
The updated Historic Context Statement took effect immediately upon the City Council’s
vote to approve the update. Provided the Council adopts the ordinance for the Historic
Preservation Ordinance update, it will become effective on February 13, 202 6. Staff will
initiate Phase 2 of the project to review the current Historic Resources Inventory and
survey for new potential resources in the mid 2026 timeframe.
CONCURRENCE
The recommended updates were reviewed by the City Attorney’s Office and staff
collaborated with the Office of Diversity, Equity, and Inclusion (DEI) for outreach on the
Historic Context Statement.
ENVIRONMENTAL REVIEW
The recommended updates to the Historic Preservation Ordinance and Historic Context
Statement consists of actions by a regulatory agency authorized by the state or local
ordinance, to assure the maintenance, restoration, or protection of the environment, and
therefore, are categorically exempt from environmental review (Section 15308, Actions
by Regulatory Agencies for Protection of the Environment).
FISCAL IMPACT
Budgeted: Yes Budget Year: 2023-26
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $250,000
Phase 1 and 2
$0 $182,289.78 $0
State
Federal
Fees
Other:
Total $ 250,000 $0 $ 182,289.78 $0
Page 83 of 525
Item 6g
There is no fiscal impact associated with the recommended actions of this report. The
cost of the consultant services that were necessary for the update to the Historic
Preservation Ordinance and Historic Context Statement were allocated through the
budget process, as this was a Major City Goal workplan item for the Community
Development Department. The allocated amount was for both phases of the project
including Phase 1, which is the current update of the Historic Preservation Ordinance and
Historic Context Statement ($100,000) and Phase 2 which includes the update of the
Historic Resources Inventory ($150,000) which will be initiated in the 2026 timeframe.
ALTERNATIVES
1. Council could continue review of the recommended updates. Council can
continue the item for any additional information needed. An action to continue the item
should include a description or list of additional information or analysis required to
make a decision so that staff and the consultant can be prepared with additional
information.
2. Council could modify the recommended updates. The Council could decide to
make minor, non-substantive modifications to Chapter 14.01 (Historic Preservation
Ordinance) for staff to incorporate into final documents. Any material changes to the
Final Ordinance would require reintroduction and adoption at subsequent meetings.
3. Council could decide not to adopt the recommended updates. Completion of
Phase 1 of the Historic Resources Inventory update would not be accomplished with
this Council action.
ATTACHMENTS
A - Ordinance No. 1753 (2026 Series)
B - Exhibit A: Chapter 14.01 (Historic Preservation Ordinance)
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O-1753
ORDINANCE NO. 1753 (2025 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, REPEALING CHAPTER 14.01 (HISTORIC
PRESERVATION ORDINANCE) OF THE MUNICIPAL CODE IN ITS
ENTIRETY AND INTRODUCING AND ADOPTING A REPLACEMENT
CHAPTER 14.01 TO INCLUDE RECOMMENDED UPDATES AND
AMENDMENTS AS REFLECTED IN THE ATTACHED EXHIBIT A (CODE-
0758-2025)
WHEREAS, the Cultural Heritage Committee of the City of San Luis Obispo held
a public hearing on September 29, 2025, to review proposed amendments to the City’s
Historic Preservation Ordinance and Historic Context Statement and recommended the
Planning Commission recommend adoption and approval of the updates t o the City
Council; and
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted
a public hearing in the Council Chambers of City Hall, 990 Palm Street, San Luis Obispo,
California on October 22, 2025, to review amendments to the Historic Preservation
Ordinance and recommended City Council introduction and adoption of the
recommended updates; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public
hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo,
California on December 2, 2025, for the purpose of considering the recommended
updates to the Historic Preservation Ordinance and voted to introduce an ordinance for
its repeal and replacement; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a hearing
in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California on
January 13, 2025, for the purpose of considering adoption of an ordinance to repeal and
replace the Historic Preservation Ordinance; and
WHEREAS, notices of said public hearings were made at the time and in the
manner required by law; and
WHEREAS, the recommended amendments to the Historic Preservation
Ordinance are Phase 1 of the Council authorized Historic Resources Inventory project
(Project) and provides updated significance criteria and historic classifications for Phase
2 of the Project, which will include review and update of the existing Historic Resources
Inventory and surveys for new potential historic resources; and
WHEREAS, notices of said public hearing were made at the time and in the
manner as required by law; and
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Ordinance No. 1753 (2025 Series) Page 2
O-1753
WHEREAS, the City Council has duly considered public input and the evaluation
and recommendations by staff, the Cultural Heritage Committee, and Planning
Commission.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Incorporation of Recitals. The City Council find that the foregoing
recitals and agenda report presented with this ordinance are true and correct and are
incorporated in the ordinance by this reference and adopted as the findings of the City
Council.
SECTION 2. Findings. Based upon all the evidence, the City Council makes the
following findings:
1. The proposed updates to the Historic Preservation Ordinance are
consistent with and implement Land Use Element Policy 12.4 since the
updates support the review and identification of historic resources.
2. The proposed updates are consistent with and implement G eneral Plan
Conservation and Open Space Element Goal 3.2 since the proposed
amendments update the Historic Preservation Ordinance which provide s
the significance criteria and historic classifications for the determination of
properties that are historically significant.
3. The proposed amendments are consistent with and implement General
Plan Conservation and Open Space Element Policy 3.3.1 by updating
documents that are used to identify significant historic resources.
4. The proposed amendments are consistent with and implement General
Plan Conservation and Open Space Element Program 3.6.1 by assisting
the Cultural Heritage Committee with the identification and development
of information on historical resources.
5. The proposed amendments are consistent with Certified Local
Government requirements from the Office of Historic Preservation (OHP)
to keep and maintain an updated historic resources inventory based on
the criteria of a local ordinance.
SECTION 3. Environmental Determination. The recommended updates to the
Historic Preservation Ordinance and Historic Context Statement consist of actions by a
regulatory agency authorized by the state or local ordinance, to assure the maintenance,
restoration, or protection of the environment, and are therefore categorically exempt from
environmental review (Section 15308, Actions by Regulatory Agencies for Protection of
the Environment).
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Ordinance No. 1753 (2025 Series) Page 3
O-1753
SECTION 4. Action. New Chapter 14.01 (Historic Preservation Ordinance), as set
forth in Exhibit A, is hereby introduced to replace existing Chapter 14.01 in its entirety
upon adoption. In accordance with the changes made to Chapter 14.01, as fully set forth
in Exhibit A, all existing properties in the City’s Historic Resources Inventory with the
designation of “Master List” shall be redesignated as “Landmark” historic resources and
all existing properties in the City’s Historic Resources Inventory with the designation of
“Contributing List” shall be redesignated as “Local Register” historic resources upon the
effective date of this ordinance.
SECTION 5. Severability. If any subdivision, paragraph, sentence, clause, or
phrase of this Ordinance is, for any reason, held to be invalid or unenforceable by a court
of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or
enforcement of the remaining portions of this Ordinance, or any other provisions of the
city's rules and regulations. It is the city's express intent that each remaining portion would
have been adopted irrespective of the fact that any one or more subdivisions, paragraphs,
sentences, clauses, or phrases be declared invalid or unenforceable .
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Ordinance No. 1753 (2025 Series) Page 4
O-1753
SECTION 6. Implementation. A summary of this ordinance, together with the
names of Council members voting for and against, shall be published at least five (5) days
prior to its final passage in The New Times, a newspaper published and circulated in this
City. This ordinance shall go into effect at the expiration of thirty (30) days after its final
passage.
INTRODUCED on the 2nd day of December, 2025, AND FINALLY ADOPTED by
the Council of the City of San Luis Obispo on the 13th day of January, 2026, on the
following vote:
AYES:
NOES:
ABSENT:
__________________________
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
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Chapter 14.01 San Luis Obispo Municipal Code, Historic Preservation Ordinance Page 1 of 23
Historic Preservation Ordinance – January 2026
Chapter 14.01
HISTORIC PRESERVATION ORDINANCE
14.01.010 Findings and purpose.
A. Findings.
1. The city of San Luis Obispo has a distinctive physical character and rich history that are
reflected in its many cultural and historic resources. These irreplaceable resources are
important to the community’s economic vitality, quality of life, and sense of place, and need
protection from deterioration, damage, and inappropriate alteration or demolition.
2. The city of San Luis Obispo has been fortunate to have owners who care about the
history of their community and have undertaken the costly and time-consuming task of
restoring, maintaining, and enhancing their historic homes and commercial buildings. Their
efforts have enhanced the distinctive character and sense of place of the community.
3. The California Environmental Quality Act (“CEQA”) considers historic resources to be part
of the environment that may be adversely affected by projects subject to public agency
review. The establishment of clear local guidance for the identification and preservation of
such resources lends clarity and certainty to the review of those development applications
involving historic resources that are subject to review under CEQA.
B. Purpose. The broad purpose of this chapter is to promote public health, safety, and welfare
through the identification, protection, enhancement, and preservation of those properties,
structures, sites, artifacts, and other cultural and historic resources that represent distinctive
elements of San Luis Obispo’s cultural, educational, social, economic, political, and architectural
history. Specifically, this chapter sets forth regulations and procedures to:
1. Identify, protect, preserve, and promote the continuing use and upkeep of San Luis
Obispo’s historic buildings, structures, objects, sites, and landscape features through
establishment and maintenance of the Inventory of Historic Resources.
2. Foster the retention and restoration of historic buildings and other historic resources
that promote tourism, economic vitality, sense of place, and diversity.
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Chapter 14.01 San Luis Obispo Municipal Code, Historic Preservation Ordinance Page 2 of 23
Historic Preservation Ordinance – January 2026
3. Encourage private stewardship of historic buildings and other historic resources through
incentives where possible.
4. Implement the historic preservation goals and policies of the conservation and open
space element of the general plan.
5. Promote the conservation of valuable material and embodied energy in historic
structures through the continued use, restoration and repair, and on-going maintenance of
historic resources.
6. Promote the knowledge, understanding, and appreciation of the City’s distinctive
character, historic resources, and history.
7. Establish the procedures and significance criteria to be applied when evaluating
development project effects on historic resources.
8. Fulfill the City’s responsibilities as a Certified Local Government under state and federal
regulations and for federal Section 106 reviews.
9. Establish the policy of the City to pursue all reasonable alternatives to achieve
compliance with this chapter for the protection of historic resources prior to initiating
penalty proceedings as set forth in Section 14.01.140.
14.01.020 Definitions.
For the purposes of this chapter, certain terms, words, and their derivatives are used as follows:
1. “Adjacent” means located on property that abuts the subject property on at least one
point of the property line, on the same property, or located on property directly across
right-of-way from the subject property and able to be viewed concurrently.
2. “Adverse effects” means effects, impacts or actions that are detrimental or potentially
detrimental to a historic resource’s historical integrity and its ability to convey its
significance.
3. “Alteration” means change, repair, replacement, remodel, modification, or new
construction to: (1) the exterior of a historic resource or adjacent building on the same
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Chapter 14.01 San Luis Obispo Municipal Code, Historic Preservation Ordinance Page 3 of 23
Historic Preservation Ordinance – January 2026
parcel, (2) the structural elements that support the exterior walls, roof, or exterior elements
of a historic resource or adjacent building on the same parcel or within the project site, (3)
other construction on a parcel shared with a historic resource or within the project site, or
(4) character defining features of the interior of a historic resource if the structure’s
significance is wholly or partially based on interior features and the resource is publicly
accessible. “Alteration” does not include ordinary landscape maintenance, unless landscape
features are identified as character-defining at the time a property is listed or found
eligible. “Alteration” also does not include ordinary property maintenance or repair that is
exempt from a building permit.
4. “ARC” means the Architectural Review Commission as appointed by the City Council.
5. “Archaeological site” means those areas where archaeological resources are present and
may include precontact or historic-period archaeological materials and deposits.
Archaeological sites may extend horizontally across multiple parcels or property lines.
6. “California Register” means the California Register of Historical Resources defined in
California PRC 5024.1 and in CCR Title 14, Chapter 11.5, Section 4850, et seq., as it may be
amended.
7. “Character-defining features” refer to those elements of the architectural character and
general composition of a resource, including, but not limited to, type and texture of
building material; type, design, and character of windows, doors, stairs, porches, railings,
molding and other appurtenant elements; and fenestration, ornamental detailing,
elements of craftsmanship, and finishes, etc.
8. “CHC” means the Cultural Heritage Committee as appointed by the City Council.
9. “City” means the City of San Luis Obispo.
10. “Contributing resource” means a property that is within the boundaries of and
contributes to the significance of a Historic District.
11. “Council” means the Council of the City of San Luis Obispo.
12. “Demolition,” for the purpose of this chapter, refers to any act or failure to act that
destroys, removes, or relocates, in whole or part, a historical resource such that its historic
or architectural character and ability to convey its significance are materially impaired.
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Historic Preservation Ordinance – January 2026
13. “Department” means the Community Development Department, or the staff thereof.
14. “Deterioration” means the worsening of a structure’s condition and/or historic integrity,
due to lack of maintenance, organisms, neglect, weathering and other natural forces.
15. “Director” means the director of the Community Development Department, or another
person authorized by the director to act on his or her behalf.
16. “Eligible resource” means any building, structure, object, site, historic district, or historic
district contributor that has been found eligible for designation through a historic resource
evaluation prepared by a qualified professional and accepted by the Director and/or City
Council, but that has not been formally designated in the Inventory of Historic Resources,
California Register of Historical Resources, or National Register of Historic Places.
17. “Feasible” means capable of being accomplished in a successful manner within a
reasonable period of time, taking into account cultural, economic, environmental, historic,
legal, social, and technological factors. “Structural feasibility” means that a building or other
structure can be repaired or rehabilitated so as to be safe and usable without significant
loss of historic fabric. Factors to be considered when making this determination include the
existence of technology that will allow the design of the work and the ability to repair,
supplement or replace load-bearing members and the thermal and moisture protection
systems required for continued use of the structure; and the physical capacity of the
structure to withstand the repair and/or rehabilitation process without the danger of
further damage.
18. “Historic context” are those patterns, themes, or trends in history by which a specific
occurrence, property, or site is understood, and its meaning and significance is made clear.
19. “Historic district” means an area adopted as a Historical Preservation “H” Overlay Zone
by the City under Chapter 17.56, and that has a concentration of buildings, structures,
objects, sites, or landscape features that help define the area or neighborhood’s significant
architectural, cultural, and historic character or sense of place.
20. “Historic Preservation Program Guidelines” means the most recent version of the
Historic Preservation Program Guidelines, as adopted by the City Council and amended
from time to time.
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Historic Preservation Ordinance – January 2026
21. “Historic resource” means any building, structure, object, site, property, landscape
feature, or district that is designated locally as a Landmark, Local Register Resource, or
contributor to a locally designated Historic District, or that has been designated or found
eligible for designation in the California Register of Historical Resources or National
Register of Historic Places as an individual resource or district contributor. This definition
includes, but is not limited to, historic gardens, site features and improvements, accessory
structures, signs, Traditional Cultural Properties, cultural landscapes and areas or objects
of archaeological, architectural, cultural, or historic significance. Elsewhere in City
publications, the terms “historic property” or “cultural resource” may be used to refer to the
same definition.
22. “Historic resource evaluation” means a report prepared by a qualified professional that
evaluates the significance of a resource within its historic context. It explains how the
resource meets the eligibility criteria and integrity thresholds as established by local, state
or federal government.
23. “Historic status” means historic designation of a listed resource as authorized by the
Director or approved by the City Council.
24. “Improvement” means any building, structure, fence, gate, landscape feature (including
gardens), permanent site feature, work of art, or other object constituting a physical
feature of real property or any part of such feature.
25. “Inappropriate alteration” means an alteration to a historic resource that is inconsistent
with the Secretary of the Interior’s Standards for the Treatment of Historic Properties
and/or the Historic Preservation Program Guidelines.
26. “Integrity, architectural or historical” means the ability of a historic resource to convey
its significance, typically evidenced by the retention of attributes that existed during a
resource’s period of significance and including location, design, setting, materials,
workmanship, feeling, and association.
27. “Inventory of Historic Resources” means the City’s list of historically designated
resources and properties, consisting of Landmarks, Local Register Resources, and Historic
Districts, inclusive of their contributing resources, and any historic resources subsequently
added to the inventory, having been determined to meet criteria outlined and approved by
the Director or City Council as described herein.
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Historic Preservation Ordinance – January 2026
28. “Landmark” is the highest level of individual local designation and may be applied to a
historic resource that has been found significant at the local, state, or national level under
one or more of the criteria described in Section 14.01.060, and that retains sufficient
integrity to convey its significance.
29. “Listed resource” means properties and resources included in the Inventory of Historic
Resources. The term “designated” as used herein refers to the same definition.
30. “Local Register Resource” is an individual local designation that may be applied to a
historic resource that has been found significant at the local level under one or more of the
criteria described in Section 14.01.060, and that retains sufficient integrity to convey its
significance.
31. “Mills Act Program” refers to a program established under State law in which owners of
historic buildings may, under a contract with the City, agree to preserve, maintain, and
improve their property in compliance with the Secretary of the Interior’s Standards and
local regulations in exchange for property tax savings.
32. “National Register” means the National Register of Historic Places, the official inventory
of places significant in American history, architecture, engineering, archaeology, and
culture that is maintained by the Secretary of the Interior under the authority of the
Historic Sites Act of 1935 and the National Historic Preservation Act of 1966, as amended.
33. “Neglect” means the lack of maintenance, repair, or protection of a listed resource, site,
structure, or property which may result in deterioration.
34. “Non-contributor” means a property that is located within the boundaries of a Historic
District but does not contribute to the significance of that district.
35. “Property owner” means the person or entity (public or private) holding fee title interest
or legal custody and control of a property.
36. “Qualified professional” means an individual determined by the Director to meet the
Secretary of the Interior’s Professional Qualifications Standards (36 CFR Part 61, Appendix
A) in history, architectural history, historic architecture, or archaeology.
37. “Relocation” means removal of a resource from its original site and its reestablishment
in essentially the same form, appearance, and architectural detailing at another location.
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Relocation may refer to movement of a resource outside of the parcel within which it was
originally built or established, or movement within its original parcel in a manner that alters
its spatial relationships and/or orientation.
38. “Responsible party” means any person, business, corporation or entity, and the parent
or legal guardian of any person under the age of eighteen years, who has committed,
permitted, directed or controlled any act constituting a violation of this chapter.
39. “Secretary of the Interior’s Standards” means the Secretary of the Interior’s Standards
for the Treatment of Historic Properties as published by the U.S. Department of the Interior
and as amended from time to time.
40. “Setting” means the character of the site, physical area, environment, or neighborhood
in which a resource is located.
41. “Site,” as used in this chapter, means the location of an event, a prehistoric or historic
occupation or activity, or of a building, structure, or object whether intact, ruined, or non-
extant, where the location itself possesses known or potential historic, cultural, or
archaeological significance.
42. “Stabilization” means the act or process of applying measures designed to reestablish a
weather-resistant enclosure and/or the structural stability of an unsafe or deteriorated
property while maintaining the essential form as it exists at present.
43. “Structure,” as used in this chapter, includes anything assembled or constructed on the
ground, or attached to anything with a foundation on the ground, including walls, fences,
buildings, signs, bridges, monuments, and similar features.
44. “Traditional Cultural Property” refers to a site or natural landscape associated with
human activities and events, including tribal cultural resources, sacred places, and cultural
landscapes. Traditional cultural properties that meet one or more of the criteria described
in Section 14.01.060 may be designated as historic resources.
45. “Zoning code” means Title 17 of the City’s Municipal Code, as amended from time to
time.
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14.01.030 Cultural Heritage Committee (CHC).
A. Committee membership and terms. The City shall have a Cultural Heritage Committee (the
“CHC” or “committee”), consisting of seven members who shall be appointed by the City Council
(“council”) for terms of up to four years, which shall commence immediately upon appointment
by the council consistent with Resolutions 6157 (1987 Series) and 6593 (1989 Series), and CHC
bylaws or as subsequently amended. The CHC shall function within the guidelines and policies
of the “Advisory Body Handbook” and perform other duties as assigned by council. The CHC is
assisted by the Director and staff of the Community Development Department.
B. Duties. The CHC shall make recommendations to decision-making bodies on the following:
1. Amendments to the Historic Preservation Program Guidelines.
2. Applications for designation of Landmarks, Local Register Resources, and Historic
Districts.
3. Requests for removal from designation as Landmarks, Local Register Resources, and
Historic Districts (including status of contributing resource within Historic Districts).
4. Adoption of historic context statements, historic resource surveys, and design standards
or guidelines.
5. Actions referred by the Director that may affect historic resources, including but not
limited to new construction, additions or alterations, demolition, or relocation of or to
individually designated properties, contributing resources to Historic Districts, or
archaeological sites.
6. Consolidation of information about cultural and historic resources and promotion,
participation in, or sponsorship of educational and interpretive programs that foster public
awareness and appreciation of cultural and historic resources.
7. Development and implementation of, including review of applications for incentive
programs approved by the council that are directed at preserving and maintaining historic
resources (e.g., Mills Act Contracts).
8. Providing information to property owners preparing local, state, and federal historic
nominations to utilize preservation incentives, including the Mills Act and federal or state
tax incentives, such as rehabilitation tax credits.
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14.01.040 Community Development Director role.
The CHC is assisted by staff of the Community Development Department. The Community
Development Director (“Director”) is responsible for interpreting and implementing this chapter
and helping the CHC carry out its duties. The Director may refer applications to the CHC for
review consistent with 14.01.030(B)(5)., The Director may determine that CHC review is not
required for actions or projects that: (1) will not adversely affect historic resources, or (2) are
consistent with this chapter, the Secretary of the Interior’s Standards, and the Historic
Preservation Program Guidelines, and no public purpose would be served by requiring CHC
review. (Ord. 1557 § 3 (part), 2010)
14.01.050 Historic resource designation.
A. The following classifications shall be used to designate historic resources. The primary
categories of historic significance are Landmarks, Local Register Resources, and Historic
Districts. The Department shall make the current list of designated historic resources available
to the public.
1. Landmarks, defined above in 14.01.020.28, are historic resources that are of the greatest
importance at the local, regional, state, or national level. in terms of age, architectural or
historical significance, rarity, or association with important persons or events in the City’s
past, that meet one or more of the criteria outlined in Section 14.01.060 and that retain a
high degree of integrity. Landmarks are eligible for participation in the Mills Act program.
Individual properties that have been listed on the National Register of Historic Places
and/or California Register of Historical Resources, and that have been assigned a California
Historical Status Code of 1, are automatically included in the Inventory of Historical
Resources as Landmarks.
2. Local Register Resources, defined above in 14.01.020.30, are historic resources that are
important locally for their architectural or historical significance or association with
important persons or events in the City’s past, according to the criteria outlined in Section
14.01.060, and that retain sufficient integrity to convey their significance.
3. Historic Districts, as defined above in 14.01.020.19, are discrete areas or neighborhoods
with concentrations of buildings, structures, objects, sites, or landscape features that help
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define an area or neighborhood’s significant architectural, cultural, and historic character
or sense of place, that meet one or more of the criteria outlined in Section 14.01.060, and
that retain integrity. Historic districts consist of identified contributors and non-
contributors within a defined boundary. Landmarks and Local Register Resources within
the boundary of a historic district may be contributors or non-contributors to the district’s
significance.
14.01.060 Evaluation criteria for historic resource designation.
A. In order to be eligible for designation, a Landmark, Local Register Resource, or Historic
District shall be at least fifty years old (if less than fifty it must be demonstrated that sufficient
time has passed to understand its historical importance), demonstrate significance under at
least one of the following criteria, and retain integrity. Consult “National Register Bulletin No.
15: How to Apply the National Register Criteria for Evaluation” for guidance on determining
significance.
1. Events. Associated with events that have made a significant contribution to the broad
patterns of local or regional history or the cultural heritage of California or the United
States.
2. Persons. Associated with the lives of persons important to local, California, or national
history.
3. Architecture. Embodies the distinctive characteristics of a type, period, region, or method
of construction, or represents the work of an architect or design professional of merit or
possesses high artistic values.
4. Information Potential: It has yielded, or has the potential to yield, information important
to the prehistory or history of the local area, California, or the nation.
B. In addition to eligibility under one or more of these significance criteria, Historic Districts
must also demonstrate a sufficient concentration of contributing resources (unless
discontiguous) and continuity of design or thematic associations to convey their character and
significance.
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14.01.070 Designation procedures for Landmarks and Local Register
Resources
A. Application for historic designation. The property owner may request that a property be
designated as a Landmark or Local Register Resource by submitting a completed application to
the Community Development Department (“Department”), accompanied by a historic resource
evaluation report that describes the property’s significance with reference to the criteria
defined in Section 14.01.060 and integrity, identifies the property’s period of significance, and
lists character-defining features. The CHC or Director may recommend, or City Council may
request that the City initiate preparation of an application for designation of a property as a
Landmark or Local Register Resource.
B. Review process, Landmark. The CHC shall review all applications for Landmark designation,
whether initiated by the City or the property owner, to determine if a property proposed for
designation meets eligibility criteria for historic designation. The Director shall provide
notification to the property owner and public, as required by City standards. The CHC will
review the eligibility criteria for a proposed designation at a noticed public hearing. At the
public hearing, the CHC shall forward a recommendation on the application to the City Council.
The City Council will take an action on the application to designate or not designate the
property as a Landmark in adherence with the City’s requirements for noticing and appeal. The
decision of the City Council is final.
C. Owner objection, Landmark. The City Council shall not take an action to designate a property
as a Landmark against the written objection of the property owner.
D. Review process, Local Register Resource. The CHC shall review all applications for designation
as a Local Register Resource, whether initiated by the City or the property owner, to determine
if a property proposed for designation meets eligibility criteria for historic designation. The
Director shall provide notification to the property owner and public, as required by City
standards. The CHC will review the eligibility criteria for a proposed designation at a noticed
public hearing. At the public hearing, the CHC shall forward a recommendation to the Director
to designate or not designate the property as a Local Register Resource. The Director shall
undertake the action to designate the resource in adherence with the City’s requirements for
noticing and appeal.
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E. Removal from historic designation. It is the general intention of the City not to remove a
property from historic designation. However, a property’s designation may be removed if new
or additional information supports the finding that the property is not eligible.
1. City Council may remove a property’s Landmark status following the process for
designation set forth herein.
2. At the recommendation of the CHC, the Director may remove a property’s Local Register
Resource status following the process for designation set forth herein.
14.01.080 Historic district designation—Purpose and application.
A. Historic district designation. All properties within Historic Districts shall be designated by an
“H” zoning. Properties zoned “H” shall be subject to the provisions and standards as provided in
Chapter 17.56 (zoning) of the Municipal Code.
B. Purposes of Historic Districts. The purposes of Historic Districts and H overlay zone designation
are to:
1. Implement cultural and historic resource preservation policies of the general plan, the
preservation provisions of adopted area and neighborhood improvement plans, the
historic preservation and archaeological resource preservation program guidelines;
2. Identify and preserve definable, unified geographical entities that possess a significant
concentration, linkage, or continuity of buildings, structures, objects, sites, or landscape
features united historically or aesthetically by plan or physical development;
3. Enhance and preserve the setting of historic resources so that surrounding land uses
and structures do not detract from the historic or architectural integrity of designated
historic resources and districts; and
4. Promote the public understanding and appreciation of historic resources.
C. Where Applied. The (H) designation may be applied to areas or neighborhoods that are
historically significant according to one or more of the criteria defined in Section 14.01.060, and
that include a collection or concentration of contributing historic or archaeological properties
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that define the district’s architectural and historic character or sense of place, and that possess
sufficient integrity to convey their significance.
D. “H” District Combined. A historic preservation overlay district (H) may be combined with any
zoning district and shall be shown by adding an “H” to the base zone designation. H district
boundaries shall be drawn to follow property lines or right-of-way lines, and as set forth in the
zoning regulations.
14.01.090 Process for establishing or amending Historic Districts.
A. Initiating or Amending Historic Districts. Any person may initiate the process to establish or
alter the boundaries of a historic district. The process can also be initiated by the CHC, Director,
or City Council.
B. Application. An application to establish or alter the boundaries of a historic district shall be
submitted to the Department. The application shall meet the requirements for rezoning as
described in the zoning regulations. The application shall be accompanied by a report that:
1. Describes the district’s significance with reference to the criteria defined in Section
14.01.060,
2. Describes and provides justification for the district boundary,
3. Identifies the district’s period of significance,
4. Lists contributing and non-contributing resources; all parcels within the boundaries of
the district must be included in the list of contributors and non-contributors. Features
within public spaces and rights-of-way, such as street furnishings and landscape features,
may be listed as contributors or non-contributors to a historic district.
5. Lists designated Landmarks and Local Register Resources within the boundary of the
district.
6. Includes a district map with the area to be established or changed shaded or outlined in
a heavy, black boundary line. For Historic Districts with proposed boundary alterations, the
original and proposed boundary to be changed must be clearly labeled.
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C. Review. The CHC shall review the application to determine if a district proposed for
designation and zoning amendment meets eligibility criteria for historic designation and make a
recommendation to the Planning Commission. The Director shall provide notification to all
property owners within the proposed district boundary and public, as required by city
standards. The Planning Commission shall review the CHC recommendation and rezoning
application and make a recommendation to the City Council. The City Council shall review the
application and the recommendations of the CHC and Planning Commission and approve or
disapprove the application. The CHC, Planning Commission, and the City Council shall each
conduct a noticed public hearing on the application.
14.01.100 Demolition of listed or eligible historic resources.
A. Intent. Listed and eligible historic resources (as defined in Section 14.01.020), including
Landmarks, Local Register Resources, and Historic Districts and their contributing resources are
irreplaceable community resources that merit special protection to preserve them for future
generations. For the purposes of review under CEQA, per title CCR 14 § 15064.5, the demolition
of such resources may be found to cause a significant impact to the environment. Buildings,
structures, objects, sites, or landscape features that are listed or eligible historic resources shall
not be demolished unless the City Council makes the findings specified in subsection E of this
section. These findings are additional to the City’s review requirements under CEQA, as
applicable, including but not limited to preparation of an Environmental Impact Report (EIR).
B. Demolition review. The CHC shall review and make a recommendation to the City Council
concerning demolition applications for buildings, structures, objects, sites, or landscape
features listed or eligible for listing in the Inventory of Historic Resources.
C. Demolition thresholds. Demolition permits for buildings, structures, objects, sites, or
landscape features that are included on or that have been found eligible for inclusion on the
Inventory of Historic Resources shall be required for:
1. Alterations to or removal of greater than twenty-five percent of the original building
framework, roof structure, and exterior walls; and
2. Relocation of such resources to a site outside the City limits.
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D. Evaluation required. The Director may require that a historic resource evaluation be submitted
with a demolition application for a building or structure that is fifty years old or older and that
has not been previously evaluated or listed on the Inventory of Historic Resources. The historic
resource evaluation shall be prepared by a qualified professional and shall evaluate the
property’s eligibility for listing in the Inventory of Historic Resources and California Register.
Evaluations shall be reviewed by the Director and CHC for adequacy. Third-party review by a
qualified professional may be required by the Director, at the expense of the applicant.
E. Required Findings for Demolition of a Historic Resource. The decision-making body shall approve
an application for demolition of a building or structure listed in or eligible for listing in the
Inventory of Historic Resources only if it determines that the proposed demolition is consistent
with the general plan and:
1. The historic resource is a hazard to public health or safety, and repair or stabilization is
not structurally feasible. Deterioration resulting from the property owner’s neglect or
failure to maintain the property should not be a justification for demolition. The applicant
may be required to provide structural reports, to the approval of the Director or City
Council, to document that repairs or stabilization are not feasible; or
2. Denial of the application will constitute an economic hardship as described under
subsections (K)(1) through (3) of this section.
These findings are additional to the City’s review requirements under CEQA, including but not
limited to preparation of an Environmental Impact Report (EIR).
F. Demolition Timing. City regulations provide for a ninety-day waiting period before demolition
of a listed or eligible historic resource to allow consideration of alternatives to preserve the
building through relocation and/or property trades. The chief building official shall not issue a
permit for demolishing a listed or eligible historic resource, except where the chief building
official determines that resource may pose an imminent demonstrable threat to human life and
safety, until:
1. Public notice requirements in the City’s demolition and building relocation code have
been met; and
2. A construction permit is issued for a replacement building if one is proposed; and
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3. All permit fees for the new development are paid. Where no new development is
proposed, the property owner shall provide to the Director’s satisfaction financial
guarantees to ensure demolition plans and conditions of approval are implemented.
G. Historic and Architectural Documentation. Before the issuance of a demolition permit for a
building, structure, object, site, or landscape feature listed in the Inventory of Historic
Resources, the resource and its site shall be documented as specified in City standards, to the
satisfaction of the CHC and the Director. The documentation shall be retained in a secure, but
publicly accessible, location. Documentation prepared for implementation of mitigation
measures required as part of the CEQA review process may be sufficient to fulfill this
requirement.
H. Historic Acknowledgement. An acknowledgment of demolished resources shall be provided
through historic signage and/or the reuse or display of historic materials and artifacts on site, at
the owner’s expense, to the Director’s approval.
I. Code Requirements. Demolitions shall follow standards and procedures in the demolition and
building relocation code and California Building Code as locally amended.
J. Expiration of Demolition Approval. Demolition approval of a listed historic resource shall expire
two years after its date of approval, unless a building permit has been issued and construction
has begun. A one-year extension may be granted by the Director. Additional time extensions
shall require reapplication to and approval by the CHC.
K. Economic Hardship. An economic hardship provision is established to ensure that denial of a
demolition permit does not impose undue hardship on the owner of a historic resource. If the
applicant presents evidence clearly demonstrating to the satisfaction of the CHC or the City
Council that the action will cause extreme hardship, the CHC may recommend approval, and
the council may approve or conditionally approve a demolition or other application to modify a
listed historic resource even though it does not meet one or more standards set forth herein.
The applicant shall be responsible for providing substantiation of the claim to the Director, who
shall review the information with the Director of Finance and make a joint recommendation to
the CHC on the hardship request. The CHC shall consider and make a recommendation to the
council regarding the financial impacts of denial of the demolition permit. Private financial
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information shall be maintained in confidence by the City. The CHC is authorized to request
that the applicant furnish information, documentation and/or expert testimony, the cost of that
shall be paid by the applicant, to be considered by the CHC in its related findings. All additional
required information shall be provided by a qualified individual or firm approved by the
Director. In determining whether extreme hardship exists, the CHC and City Council shall
consider evidence that demonstrates:
1. Denial of the application will diminish the value of the subject property so as to leave
substantially no economic value, after considering other means of offsetting the costs of
retaining the historic resource, including, but not limited to, tax abatements, financial
assistance, building code modifications, changes in allowed uses, grants; or
2. Sale or rental of the property is impractical, when compared to the cost of holding such
property for uses permitted in the zoning district; or
3. Utilization of the property for lawful purposes is prohibited or impractical.
14.01.110 Relocation of listed or eligible historic resources.
A. Intent. Relocation of a property within or outside of its original site or parcel (as defined in
Section 14.01.020.37) has the potential to adversely affect the significance of a historic resource
and is discouraged. The City Council will not grant approval for the relocation of a listed historic
resource unless the criteria for relocation under subsection D of this section can be met.
Relocation applications shall be evaluated as follows:
B. Review. The CHC shall review and make a recommendation to the City Council concerning
relocation applications for buildings, structures, objects, sites, or landscape features listed or
eligible for listing in the Inventory of Historic Resources that would result in removal of the
building from its original site or parcel. Minor relocation within a structure’s original parcel may,
at the recommendation of the CHC, be reviewed by the Director. Applications for relocation of
buildings or structures listed or eligible for listing on the Inventory of Historic Resources outside
of the City limits are subject to the requirements of Section 14.01.100.
C. Evaluation required. The Director may require that a historic resource evaluation be submitted
with an application for relocation of a building, structure, object, site, or landscape feature that
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is fifty years old or older and that has not been previously evaluated or listed on the Inventory
of Historic Resources. The historic resource evaluation shall be prepared by a qualified
professional and shall evaluate the property’s eligibility for listing in the Inventory of Historic
Resources and California Register. Evaluations shall be reviewed by the Director for adequacy.
Third-party review by a qualified professional may be required by the Director, at the expense
of the applicant.
D. Criteria for relocation. Relocation of structures included on or that have been found eligible
for listing on the Inventory of Historic Resources is the least preferred preservation method and
shall be permitted only when relocation is consistent with the goals and policies of the general
plan, any applicable area or specific plans, and the Historic Preservation Program Guidelines.
Prior to recommendation of approval for a permit to relocate a listed or eligible resource, CHC
must find the following:
1. The relocation will not significantly change, destroy, or adversely affect the historic,
architectural or aesthetic value of the resource, as demonstrated to the satisfaction of the
CHC and Director by a project analysis report prepared by a qualified professional; and
2. Relocation will not have a significant adverse effect on the character of the Historic
District or neighborhood, or surrounding properties at the resource’s original and
proposed receiving site; and
3. The original site and the proposed receiving site are controlled through ownership, long-
term lease or similar assurance by the person(s) proposing relocation, to the Director’s
approval; and
4. The proposed receiving site is compatible with the original character and use of the
resource or eligible resource’s historic significance; and
5. The relocation is necessary to correct an unsafe or dangerous condition on the site and
no other measures for correcting the condition are feasible; or
6. The proposed relocation meets the findings for economic hardship required under
Section 14.01.100(K).
These findings are additional to the City’s review requirements under CEQA, including but not
limited to preparation of an Environmental Impact Report (EIR).
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E. Relocation Timing. The historic resource shall not be relocated unless the chief building official
issues a permit for relocation and all permit or impact fees for new development are paid; or,
where no new development is proposed, an appropriate security is posted to guarantee that
relocation plans are implemented to the Director’s approval.
F. Historical and Architectural Documentation. Prior to issuance of a construction permit for
relocation, the resource and its site shall be historically documented as specified herein, to the
satisfaction of the CHC and the Director. An acknowledgment of the resource, such as a
permanent, weatherproof historic plaque, shall be incorporated on the resource’s original site
as provided by the applicant or property owner, subject to the approval of the CHC and
Director.
G. Relocation Plan and Procedures. Relocations shall follow a plan approved by the CHC, that
adheres to standards of the California Building Code, and the following:
1. Application for relocation shall be made on forms provided by the Department and shall
include information to respond to the criteria in subsection D of this section.
2. The CHC shall hold a noticed public hearing and recommend action to City Council on
the application for relocation of a historic resource, and the City Council shall consider the
CHC’s recommendation in making the final determination to approve or deny the permit.
14.01.120 Unpermitted demolition or destruction of listed or eligible
historic resources.
A. Preservation of listed historic resources. The purpose of this section is to prevent unpermitted
active demolition or demolition by neglect by ensuring that listed historic resources are
maintained in good repair, and free from structural defects and safety hazards, consistent with
the International Property Maintenance Code, Property Maintenance Standards (Chapter
17.76), and standards as specified herein. Demolition in whole or part, of a listed or eligible
historic resource requires city authorization, pursuant to Section 14.01.100.
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B. Enhanced Penalties for Unpermitted Demolition. In addition to penalties otherwise provided for
violations of the San Luis Obispo Municipal Code and this chapter, the City Council, following
notice and a public hearing, may impose the following enhanced penalties for unpermitted
demolition of a listed or eligible resource, as defined herein, where the property owner has
willfully demolished, or directed, or allowed the demolition of a listed resource, or where the
property owner has failed to comply with notices to correct violations of this code, such that the
continuance of such violations may result in the unpermitted demolition of the listed historic
resource (either active or by neglect):
1. Restoration. The owner may be required to restore the property or structure to its
appearance prior to the violation to the satisfaction of the Director.
2. Building Permit Restriction. The City may prohibit the owner(s), successors, or assigns from
obtaining a building permit for development of the subject property for a period of up to
five years from the date of violation, unless such permit(s) is for the purpose of complying
with provisions of this chapter. In cases where this penalty is imposed, the City shall:
a. Initiate proceedings to place a deed restriction on the property to ensure
enforcement of this restriction.
b. Require the property owner to maintain the property during the period of
development restriction in conformance with standards set forth in this chapter.
c. Initiate action to remove any such deed restriction within ten days of correction or
compliance. Subsequent development applications shall be subject to CEQA review as
appropriate and conditions of development shall address the demolition of the historic
resource.
3. Loss of Preservation Benefits. Any historic preservation benefits previously granted to the
affected property, such as a Mills Act contract, may be subject to revocation.
4. Other Remedies. These enhanced penalties are nonexclusive, in addition to and not in lieu
of penalties otherwise provided for violations of the San Luis Obispo Municipal Code and
this chapter, including, but not limited to, administrative citations, criminal prosecution,
civil fines, and public nuisance proceedings.
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14.01.130 Historic and cultural resource preservation fund
established.
The historic and cultural resource preservation fund (“fund”) is hereby established to provide
for the conservation, preservation, restoration and rehabilitation of historic and cultural
resources in the city of San Luis Obispo. The council shall provide the policy direction for
funding and expenditures from the fund.
A. Program Administration. The director shall administer the fund, following specific procedures
and funding priorities adopted by the council.
B. Purpose. The purpose of the fund is to provide funds for historic preservation projects within
the city. All funds deposited in the fund shall be used for the conservation, preservation,
restoration and rehabilitation of historic or cultural resources, as provided in this section and as
directed by the council.
1. Financial Administration. Financial administration of the fund shall be by the city Finance
Director or designee, in accordance with state and local law. Any interest earned on the
fund shall accrue to the funds, unless council specifically designates such funds for another
purpose.
2. Grants, Gifts and Donations. The finance director shall deposit into the fund any grants,
gifts, donations, rents, royalties, or other financial support earmarked by council for
historic or cultural resource preservation.
C. Cultural Heritage Committee Role. The CHC shall advise the council on the fund regarding:
1. Criteria for use and award of funds;
2. Entering into any contract, lease, agreement, etc., for use of funds;
3. Any other action or activity necessary or appropriate to achieve the fund purposes and
the intent of this chapter.
D. Uses of Fund. The fund may be used for: (1) the identification and protection of cultural
resources, including preparation of historic surveys and design guidelines, (2) for the repair,
restoration, rehabilitation, preservation and maintenance of historical buildings, features, or
archaeological sites, (3) for public education on cultural resources, (4) for real property
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acquisition if there is a willing property owner, including lease, purchase, sale, exchange or
other forms of real property transfer or acquisition to protect significant historic resources, or
(5) any other historic preservation related purpose approved by the council. Council decisions
on the use of funds are final.
E. Loans and Grants. The fund may be used, upon council approval and recommendation by the
CHC, for loans and grants to public agencies, nonprofit organizations and private entities to
carry out the purposes of this chapter.
F. Preservation Agreements. Loans, grants or other financial assistance shall require execution of
an agreement between the City and the recipient to ensure that such award or assistance
carries out the purposes of this chapter and is consistent with applicable state and local
standards.
G. Funding Eligibility. The fund shall be used to benefit listed historic resources, or for other
properties or uses deemed eligible by the council upon recommendation by the CHC. (Ord. 1557
§ 3 (part), 2010)
14.01.140 Enforcement.
A. The Director, chief building official and city attorney and their designees are hereby
authorized to enforce the provisions of this chapter.
B. Time to Correct. Prior to assessment of any penalty or initiation of any prosecution for any
violation of this chapter, the Director shall provide written notice of noncompliance to property
owner(s). Notice shall be by certified and regular mail. Following mailing of notice, property
owner shall have sixty days to correct the violation or to inform the City why an extension is
warranted. Additional time to correct the violation may be allowed where the property owner is
exercising due diligence in acting to correct noticed violations. The Director shall have the
authority to place reasonable conditions on such an extension. Notwithstanding these
provisions, if the Director or the chief building official determines there is an imminent threat to
a listed or historic resource, the Director shall notify the property owner of the imminent threat
and property owner shall be required to provide urgent measures deemed reasonable and
necessary to protect the public health and safety and for the protection of the resource within
seventy-two hours of notification.
Page 110 of 525
Chapter 14.01 San Luis Obispo Municipal Code, Historic Preservation Ordinance Page 23 of 23
Historic Preservation Ordinance – January 2026
C. Work Stoppage. In addition to any other fines, penalties or enforcement provisions set forth in
this chapter, failure to comply with an approved application shall constitute grounds for
immediate stoppage of the work involved in the noncompliance until the matter is resolved.
D. Violation—Penalty. Every property owner and/or responsible party, as defined in this chapter,
who violates provisions of this chapter is subject to penalty as set forth in Chapter 1.12 or
administrative enforcement as set forth under Chapter 1.24 of the Municipal Code.
14.01.150 Appeals.
Decisions of any City official or body under the provisions of this chapter are appealable in
accordance with the provisions of Chapter 1.20, except that fees for appeals under this chapter
by the property owner concerning the Landmark or Local Register Resource in which said
owner is residing at the time of appeal shall be waived.
14.01.160 Severability.
Should any section or other portion of this chapter be determined unlawful, unenforceable, or
otherwise invalid by a court of competent jurisdiction, the remaining section(s) and portion(s) of
this chapter shall be considered severable and shall remain in full force and effect.
Page 111 of 525
Page 112 of 525
Item 6h
Department: Public Works
Cost Center: 9501
For Agenda of: 1/13/2026
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Public Works & Utilities Director
Prepared By: Luke Schwartz, Transportation Manager
SUBJECT: AWARD CONSTRUCTION CONTRACT FOR SOUTH STREET AND KING
COURT CROSSING PROJECT, SPECIFICATION NO. 2001059
RECOMMENDATION
1. Award a construction contract for the South Street and King Court Crossing Project
to JJ Fisher Construction Inc. in the amount of $632,816; and ,
2. Authorize the City Engineer to approve Contract Change Orders up to the available
project budget, including any amendments authorized by the City Manager; and,
3. Authorize the transfer of $150,000 from the Roadway Sealing 2024 Project (Account
2000615) to the South Street and King Court Crossing Project (Account 2001059);
and,
4. Approve a purchase from AM Signal, not to exceed $204,600 total, for the purchase
and installation of Emergency Vehicle Preemption (EVP) equipment for San Luis
Obispo Fire and Police Department vehicles.
POLICY CONTEXT
The City’s 2021 Active Transportation Plan (ATP) recommends installation of pedestrian
crossing improvements, such as a Pedestrian Hybrid Beacon (PHB), at the intersection
of South Street and King Court as a Tier 1 (highest -priority) project. Installation of this
crossing also supports the City’s overarching Vision Zero objective to improve traffic
safety and eliminate traffic fatalities, as well as the specific recommendation to upgrade
and modernize emergency vehicle pre-emption (EVP) equipment for the San Luis Obispo
Fire (SLO Fire) and Police (SLO PD) Departments, as identified in City’s 2025 Draft Vision
Zero Action Plan (See Post-Crash Care Recommended Action #1).
Pursuant to San Luis Obispo Municipal Code, Section 3.24.060(E), standard City bidding
procedures for procurement of equipment and services may be dispensed with, at the
discretion of the purchasing authority, when the purchase will be made cooperatively with
one, or more, other units of government, or from a local dealer within the city limits that
can provide the same brand, model and configuration of item(s) identified in cooperative
purchase agreement(s) at or below the cooperative purchasing net cost within the same
terms and conditions. The recommendation to approve the purchase of EVP equipment
Page 113 of 525
Item 6h
and installation service from AM Signal, not to exceed $204,600, would comply with this
policy, as follows:
AM Signal is the designated regional dealer for Miovision, who owns and sells
Opticom EVP products, the standardized EVP equipment used by the City of San
Luis Obispo; and
Miovision is an approved vendor for Opticom EVP equipment under the Sourcewell
Cooperative Agreement, a competitively solicited purchasing contract that allows
member public agencies to buy goods and services without the need to conduct
their own formal bid processes; and
The City of San Luis Obispo is a Sourcewell member, allowing for purchases of
Opticom EVP equipment and installation services under the same pricing and
terms agreed to under the cooperative agreement.
DISCUSSION
On October 7, 2025, the City Council authorized staff to advertise the South Street & King
Court Crossing (Project) for construction bids and authorized the City Manager to award
the contract if the lowest responsible bid was within the Engineer’s Estimate of $525,000.
The Project includes installation of a Pedestrian Hybrid Beacon Crossing, related
Americans with Disabilities Act (ADA) curb ramp and sign/striping improvements.
On November 13, 2025, three bids were received and opened (Attachment A). JJ Fisher
Construction Inc. (JJ Fisher) provided the lowest responsive bid in the total amount of
$632,816. Since the lowest bid amount exceeds the delegated authority provided to the
City Manager by $107,816, staff is returning to Council to request the award of the
construction contract. Generally, the increase in costs above the Engineer’s estimate may
be attributed to recent economic trends leading to overall cost increases in construction
related to high demand for work with a limited pool of qualified contractors and increases
in traffic signal equipment costs (particularly steel poles and electrical systems).
Bid Summary Total Bid
Engineer’s Estimate $525,000
1 JJ Fisher Construction $632,816
2 Souza Construction $744,850
3 R. Burke Corporation $928,037
The Contractor’s references, license, and registration with the Department of Industrial
Relations have been verified. Staff is recommending that the project be awarded to JJ
Fisher (Attachment B).
Page 114 of 525
Item 6h
Previous Council or Advisory Body Action
On October 7, 2025, the City Council authorized staff to advertise for construction bids
for the South Street and King Court Crossing Project. Council further appropriated an
additional $320,000 from Capital Projects Reserve Fund to support construction of the
crossing and the purchase of EVP equipment for SLO Fire and SLO PD vehicles, which
will help minimize any increases in emergency response times with the addition of this
Project, and improve response capabilities citywide.
For a detailed summary on previous City Council and Advisory Body actions related to
the Project, see the October 7, 2025 Council Agenda Report.
Public Engagement
A detailed summary of public outreach and engagement activities conducted to date on
the Project is provided in the October 7, 2025 Council Agenda Report. Both this current
agenda item and the previous October 7, 2025 Council Agenda item followed all required
postings and notifications, and the public has had an opportunity to comment on this topic
at or before these meetings.
CONCURRENCE
The Project and staff report have been reviewed and have concurrence from the City
Public Works Department, Fire Department, Police Department, City Attorney’s Office,
and City Administration.
ENVIRONMENTAL REVIEW
The Project qualifies for an Exemption to the California Environmental Qu ality Act (CEQA)
pursuant to State CEQA Guidelines Section 15301 Class 1 (Existing Facilities) and 15302
Class 2 (Replacement or Reconstruction). A Notice of Exemption has been filed through
the Community Development Department with the County Clerk-Recorder.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2025-26
Funding Identified: Yes
Fiscal Analysis:
Funding Sources
Total
Budget
Available
Current
Funding
Request
Remaining
Balance
South & King Crossing Account (2001059)
SLOCOG Grant (State REAP Funds)* $500,000 $500,000 $0
South & King Crossing Account (2001059)
Capital Projects Reserve Fund (Capital Outlay
LRM)*
$319,918 $319,918 $0
Page 115 of 525
Item 6h
Roadway Sealing 2024 Account (2000615)
(Capital Outlay LRM)** $222,634 $150,000 $72,634
Total $1,042,552 $969,918 $72,634
*This line reflects funding appropriations to the Project account already approved by Council.
Note that $320,000 in CIP Reserve Funds were previously appropriated; however, $82 has
since been expended to file CEQA Notice of Exemption.
**This line represents new funding transfer request to Project account.
The Project account has a current balance of $819,918, comprised of $500,000 in State
REAP grant funding (administered via SLOCOG) and $319,918 in Local Revenue
Measure (LRM) funding appropriated from the Capital Projects Reserve Fund with the
Council’s previous action on October 7, 2025.
The total construction cost is $765,380, including the construction contract for the lowest
responsive bid ($632,816), construction contingencies, and materials testing.
On October 7, 2025, the City Council also approved use of funds from the Project account
to fund the purchase and installation of EVP equipment for SLO Fire and SLO PD
vehicles. An updated quote for this equipment was obtained in late 2025, which confirmed
these costs at approximately $204,600, reflecting approximately $167,200 for equipment
and $37,400 for installation fees. This will fund the installation of EVP equipment with
infrared and GPS detection capabilities for 10 SLO Fire vehicles and up to 20 SLO PD
patrol vehicles. SLO PD currently has no EVP equipment on their vehicles, while SLO
Fire has infrared vehicle equipment only. Infrared detection allows approaching
emergency vehicles to communicate with downstream traffic signals to provide a green
light and flush traffic along the response route; however, infrared detection relies on clear
line-of-sight and can be limited along routes with large tree canopies or roadway curves.
GPS EVP equipment allows for better upstream detection and improved abil ity to clear
traffic ahead of an approaching emergency vehicle.
These vehicle equipment upgrades will immediately provide significant improvements to
emergency response for SLO PD, and will incrementally improve emergency response
capabilities for SLO Fire as more city traffic signals are equipped with GPS capabilities.
The South/King PHB will be the first city traffic signal with GPS equipment; however,
additional upgrades as planned with the Higuera Complete Street Project and will
continue at other priority intersections in coming years, as funding allows.
Because the City uses standardized EVP equipment by Opticom, and the Opticom
manufacturer (Miovision) uses a designated regional dealer (AM Signal), staff is
requesting Council authorization to purchase EVP equipment and installation support
directly from AM Signal, not to exceed $204,600 total, via the Sourcewell Cooperative
Agreement pursuant to San Luis Obispo Municipal Code, Section 3.24.060(E). As a
Sourcewell member, the City is able to make Opticom EVP equipment purchases via
Miovision (or their authorized dealer, AM Signal) under the same pricing an d terms
agreed to under this competitively solicited cooperative purchasing agreement.
Page 116 of 525
Item 6h
To provide sufficient funding for Project construction and related EVP purchases, staff
recommends appropriating an additional $150,000 in Capital Outlay LRM funding from
the completed Roadway Sealing 2024 Project Account (Spec. No. 2000615). The
Roadway Sealing 2024 Project Account has a current remaining balance of $222,634,
leaving $72,634 in remaining funding following this transfer.
South Street and King Court Crossing, Specification No. 2001059
South & King Crossing
(2001059)
Roadway
Sealing 2024
(2000615) Total
Costs SLOCOG
Grant
Capital Outlay
LRM
Capital Outlay
LRM
(State REAP
Funds) (CIP Reserve)
Construction Contract $500,000 $132,816 $632,816
Contingencies (20%) $126,564 $126,564
Materials Testing $5,000 $5,000
Printing $1,000 $1,000
Total Construction Cost $500,000 $265,380 $0 $765,380
EVP Equipment Purchase $54,538 $112,600 $167,138
EVP Equipment Installation $37,400 $37,400
Cost for EVP Upgrades $0 $54,538 $150,000 $204,538
Current Balance
(Account 2001059) $500,000 $319,918 $819,918
New Funding Request $150,000 $150,000
TOTAL PROJECT
BUDGET $500,000 $319,918 $150,000 $969,918
ALTERNATIVES
1. Deny the approval to award the Project construction contract. City Council
could deny the request to award the project construction contract, directing staff to
re-advertise the project or defer the project to a later date. This alternative would
further delay the project, which could lead to a rise in construction cost, risk
forfeiture of SLOCOG grant funds, and delay recommended pedestrian crossing
upgrades.
Page 117 of 525
Item 6h
If this alternative is preferred by Council, staff would ask that Council also provide
direction on whether to advance EVP equipment purchases using existing Project
funds, or to delay these purchases.
2. Deny the request to transfer additional funds to the Project Account,
directing staff to defer EVP equipment purchases to a later date. City Council
could reject the request to transfer additional funding from the Roadway Sealing
2024 Account to the Project account, directing staff to award the construction
contract to JJ Fisher ($632,816) and proceed with Project construction and a
reduced amount of EVP equipment that could be advanced within existing Project
funds.
With existing Project funds, this would allow for construction of the project and
purchase and installation of EVP equipment for approximately 40% of the desired
number emergency vehicles at this time. While not guaranteed, additional
equipment could be funded following completion of construction using any unspent
construction contingency funds. The trade-off with this alternative is that
installation of EVP equipment for some emergency vehicles may be delayed until
further funding can be identified in the future.
ATTACHMENTS
A - Bid Results
B - Draft Construction Agreement with JJ Fisher Construction Inc.
Page 118 of 525
SOUTH STREET AND KING COURT CROSSING, SPECIFICATION NO. 2001059
Bid Opening: 11/13/2025 UNIT TOTAL UNIT TOTAL UNIT TOTAL UNIT TOTAL
No. ITEM UNIT QUAN PRICE PRICE PRICE PRICE PRICE PRICE PRICE PRICE
1 TEMPORARY TRAFFIC CONTROL & MOBILIZATION LS 1 $0.00 $25,000.00 $25,000.00 $43,430.00 $43,430.00 $140,000.00 $140,000.00
2 COMPLY WITH NIGHT WORK PERMIT LS 1 $0.00 $12,670.00 $12,670.00 $12,250.00 $12,250.00 $15,000.00 $15,000.00
3 NORTHWEST CURB RAMP: SOUTH ST & KING STREET LS 1 $0.00 $29,600.00 $29,600.00 $48,160.00 $48,160.00 $51,000.00 $51,000.00
4 SOUTHWEST CURB RAMP: SOUTH ST & KING COURT LS 1 $0.00 $33,300.00 $33,300.00 $49,900.00 $49,900.00 $59,000.00 $59,000.00
5 SOUTHEAST CURB RAMP: SOUTH ST & KING COURT LS 1 $0.00 $34,500.00 $34,500.00 $54,475.00 $54,475.00 $60,000.00 $60,000.00
6 NORTHEAST CURB RAMP: SOUTH ST & KING STREET LS 1 $0.00 $32,100.00 $32,100.00 $53,220.00 $53,220.00 $64,800.00 $64,800.00
7 SOUTH ST & KING STREET WEST MEDIAN LS 1 $0.00 $5,900.00 $5,900.00 $15,470.00 $15,470.00 $18,000.00 $18,000.00
8 RELOCATE CITY BENCHMARK EA 1 $0.00 $2,750.00 $2,750.00 $5,500.00 $5,500.00 $1,400.00 $1,400.00
9 REMOVE (E) PAVEMENT MARKINGS LS 1 $0.00 $4,400.00 $4,400.00 $4,400.00 $4,400.00 $7,200.00 $7,200.00
10 FOG SEAL SQFT 5,700 $0.00 $0.60 $3,420.00 $0.75 $4,275.00 $1.00 $5,700.00
11 WHITE THERMOPLASTIC PAVEMENT MARKINGS SQFT 132 $0.00 $16.50 $2,178.00 $16.50 $2,178.00 $17.00 $2,244.00
12 CURB PAINT LF 215 $0.00 $2.20 $473.00 $2.20 $473.00 $3.00 $645.00
13 THERMOPLASTIC – 12” WHITE/YELLOW STRIPE LF 330 $0.00 $5.50 $1,815.00 $5.50 $1,815.00 $7.00 $2,310.00
14 THERMOPLASTIC – 24”’ WHITE/YELLOW STRIPE LF 448 $0.00 $8.25 $3,696.00 $8.25 $3,696.00 $7.00 $3,136.00
15 THERMOPLASTIC – DETAIL 22 LF 100 $0.00 $3.30 $330.00 $3.30 $330.00 $2.30 $230.00
16 THERMOPLASTIC – DETAIL 25 LF 25 $0.00 $5.60 $140.00 $6.00 $150.00 $2.30 $57.50
17 THERMOPLASTIC – DETAIL 38 LF 20 $0.00 $5.50 $110.00 $5.50 $110.00 $2.30 $46.00
18 THERMOPLASTIC – DETAIL 39A LF 130 $0.00 $3.30 $429.00 $3.30 $429.00 $2.30 $299.00
19 THERMOPLASTIC ‐ BIKE BUFFER STRIPE LF 50 $0.00 $8.80 $440.00 $8.80 $440.00 $7.00 $350.00
20 GREEN BIKE LANE SQFT 250 $0.00 $19.80 $4,950.00 $19.80 $4,950.00 $22.00 $5,500.00
21 FLEX POST EA 4 $0.00 $385.00 $1,540.00 $280.00 $1,120.00 $300.00 $1,200.00
22 REMOVE SIGN AND POST EA 7 $0.00 $165.00 $1,155.00 $182.00 $1,274.00 $200.00 $1,400.00
23 R10‐3i(L/R) SIGN EA 4 $0.00 $220.00 $880.00 $825.00 $3,300.00 $250.00 $1,000.00
24 R10‐3 SIGN EA 2 $0.00 $110.00 $220.00 $825.00 $1,650.00 $250.00 $500.00
25 R4‐7 SIGN EA 2 $0.00 $125.00 $250.00 $138.00 $276.00 $150.00 $300.00
26 OM1‐1 OBJECT MARKER EA 2 $0.00 $110.00 $220.00 $50.00 $100.00 $50.00 $100.00
27 R10‐23A SIGN EA 2 $0.00 $165.00 $330.00 $165.00 $330.00 $180.00 $360.00
28 R118 SIGN EA 2 $0.00 $165.00 $330.00 $165.00 $330.00 $180.00 $360.00
29 R10‐6 SIGN EA 2 $0.00 $165.00 $330.00 $165.00 $330.00 $180.00 $360.00
30 R9‐5 SIGN EA 2 $0.00 $165.00 $330.00 $825.00 $1,650.00 $540.00 $1,080.00
31 STREET NAME SIGN ON SIGNAL POLE EA 4 $0.00 $1,320.00 $5,280.00 $1,320.00 $5,280.00 $1,400.00 $5,600.00
32 REINSTALL SALVAGED SIGN EA 3 $0.00 $83.00 $249.00 $138.00 $414.00 $150.00 $450.00
33 REINSTALL SALVAGED POST EA 5 $0.00 $305.00 $1,525.00 $193.00 $965.00 $280.00 $1,400.00
34 INSTALL CITY‐FURNISHED ELECTRICAL SERVICE PEDESTAL & FOUNDATION LS 1 $0.00 $6,336.00 $6,336.00 $6,336.00 $6,336.00 $6,800.00 $6,800.00
35 FURNISH (N) ELECTRICAL SERVICE PEDESTAL, DELIVER TO CITY SIGNAL SHOP LS 1 $0.00 $10,450.00 $10,450.00 $10,450.00 $10,450.00 $13,000.00 $13,000.00
36 FURNISH & INSTALL BATTERY BACKUP SYSTEM EA 1 $0.00 $3,850.00 $3,850.00 $3,850.00 $3,850.00 $4,100.00 $4,100.00
37 REMOVE AND SALVAGE (E) RRFB SYSTEM LS 1 $0.00 $2,120.00 $2,120.00 $2,120.00 $2,120.00 $2,250.00 $2,250.00
38 ADDITIONAL PAVEOUT ALLOWANCE (6” THICKNESS) SQFT 40 $0.00 $50.00 $2,000.00 $45.10 $1,804.00 $45.00 $1,800.00
39 ADDITIONAL PAVEOUT ALLOWANCE (10” THICKNESS) SQFT 40 $0.00 $100.00 $4,000.00 $52.40 $2,096.00 $75.00 $3,000.00
40 SIDEWALK REPLACEMENT ALLOWANCE SQFT 250 $0.00 $25.00 $6,250.00 $29.00 $7,250.00 $50.00 $12,500.00
41 CURB AND GUTTER REPLACEMENT ALLOWANCE LF 48 $0.00 $120.00 $5,760.00 $146.00 $7,008.00 $120.00 $5,760.00
42 FURNISH AND INSTALL CONTROLLER CABINET AND FOUNDATION EA 1 $0.00 $20,350.00 $20,350.00 $20,350.00 $20,350.00 $28,000.00 $28,000.00
43 FURNISH AND INSTALL TYPE 26‐4‐100 SIGNAL POLE, FOUNDATION, 40' MAST ARM, AND 15' LUMINAIRE ARM EA 1 $0.00 $28,050.00 $28,050.00 $28,050.00 $28,050.00 $35,000.00 $35,000.00
44 FURNISH AND INSTALL TYPE 19‐4‐100 SIGNAL POLE, FOUNDATION, 25' MAST ARM, AND 10' LUMINAIRE ARM EA 2 $0.00 $22,550.00 $45,100.00 $22,550.00 $45,100.00 $27,000.00 $54,000.00
45 FURNISH AND INSTALL TYPE 19A‐4‐100 SIGNAL POLE, FOUNDATION, 30' MAST ARM, AND 10' LUMINAIRE ARM EA 1 $0.00 $22,000.00 $22,000.00 $22,000.00 $22,000.00 $23,500.00 $23,500.00
46 FURNISH AND INSTALL TYPE 15TS POLE, FOUNDATION AND 10' LUMINAIRE ARM EA 2 $0.00 $13,200.00 $26,400.00 $13,200.00 $26,400.00 $17,000.00 $34,000.00
47 FURNISH AND INSTALL TYPE 1‐A SIGNAL POLE AND FOUNDATION EA 2 $0.00 $9,350.00 $18,700.00 $9,350.00 $18,700.00 $10,000.00 $20,000.00
48 FURNISH AND INSTALL TYPE 2 POST AND FOUNDATION EA 3 $0.00 $2,750.00 $8,250.00 $2,750.00 $8,250.00 $2,900.00 $8,700.00
49 FURNISH AND INSTALL OPTICOM EVP SYSTEM LS 1 $0.00 $18,150.00 $18,150.00 $18,150.00 $18,150.00 $19,000.00 $19,000.00
50 FURNISH AND INSTALL 3‐SECTION PEDESTRIAN HYBRID BEACON INDICATOR AND MOUNTING EA 8 $0.00 $2,222.00 $17,776.00 $2,222.00 $17,776.00 $2,300.00 $18,400.00
51 FURNISH AND INSTALL CUSTOM BLANKOUT SIGN & ASSEMBLY ON SIGNAL MAST ARM EA 2 $0.00 $4,125.00 $8,250.00 $4,125.00 $8,250.00 $4,400.00 $8,800.00
52 FURNISH AND INSTALL PEDESTRIAN SIGNAL HEAD EA 4 $0.00 $1,221.00 $4,884.00 $1,221.00 $4,884.00 $1,300.00 $5,200.00
53 FURNISH AND INSTALL APS PPB EA 4 $0.00 $2,215.00 $8,860.00 $2,215.00 $8,860.00 $2,350.00 $9,400.00
54 FURNISH AND INSTALL NON‐APS BIKE PPB EA 2 $0.00 $495.00 $990.00 $495.00 $990.00 $500.00 $1,000.00
55 FURNISH AND INSTALL LED LUMINAIRE EA 6 $0.00 $715.00 $4,290.00 $715.00 $4,290.00 $760.00 $4,560.00
56 FURNISH AND INSTALL NO. 6E PULL BOX EA 2 $0.00 $3,152.00 $6,304.00 $3,160.00 $6,320.00 $3,350.00 $6,700.00
R. Burke ConstructionSouza Construction
BASE BID
Engineer's Estimate JJ Fisher Construction
Page 119 of 525
57 FURNISH AND INSTALL NO. 5 PULL BOX EA 7 $0.00 $1,738.00 $12,166.00 $1,738.00 $12,166.00 $1,900.00 $13,300.00
58 FURNISH AND INSTALL 4" CONDUIT LF 295 $0.00 $50.00 $14,750.00 $50.00 $14,750.00 $52.00 $15,340.00
59 FURNISH AND INSTALL 3" CONDUIT LF 80 $0.00 $38.50 $3,080.00 $39.00 $3,120.00 $40.00 $3,200.00
60 FURNISH AND INSTALL NEW CONDUCTORS AND CABLES LS 1 $0.00 $49,720.00 $49,720.00 $49,720.00 $49,720.00 $52,700.00 $52,700.00
61 FURNISH AND INSTALL VIDEO DETECTION SYSTEM LS 1 $0.00 $38,720.00 $38,720.00 $38,720.00 $38,720.00 $41,000.00 $41,000.00
62 FURNISH AND INSTALL CCTV CAMERA LS 1 $0.00 $6,160.00 $6,160.00 $6,160.00 $6,160.00 $6,500.00 $6,500.00
63 FURNISH AND INSTALL TRAFFIC SIGNAL CONTROLLER AND SOFTWARE EA 1 $0.00 $9,790.00 $9,790.00 $9,790.00 $9,790.00 $10,500.00 $10,500.00
64 FURNISH, INSTALL, AND CONFIGURE WIRELESS RADIO EA 1 $0.00 $5,720.00 $5,720.00 $5,120.00 $5,720.00 $6,000.00 $6,000.00
65 FURNISH AND INSTALL #2 PG&E JUNCTION BOX EA 1 $0.00 $2,750.00 $2,750.00 $2,750.00 $2,750.00 $3,000.00 $3,000.00
$0.00 $632,816.00 $744,850.00 $928,037.50TOTAL PROJECT BID
Page 120 of 525
AGREEMENT
THIS AGREEMENT, made on _______________________, by and between the City of
San Luis Obispo, a municipal corporation and charter city, San Luis Obispo County,
California (hereinafter called the Owner) and JJ FISHER CONSTRUCTION, INC.
(hereinafter called the Contractor).
WITNESSETH:
That the Owner and the Contractor for the consideration stated herein agree as follows:
ARTICLE 1, SCOPE OF WORK: The Contractor shall perform everything required to be
performed, shall provide and furnish all of the labor, materials, necessary tools,
expendable equipment, and all utility and transportation services required to complete all
the work of construction of
SOUTH STREET AND KING COURT CROSSING,
SPECIFICATION NO. 2001059
in strict compliance with the plans and specifications therefor, including any and all
Addenda, adopted by the Owner, in strict compliance with the Contract Documents
hereinafter enumerated.
It is agreed that said labor, materials, tools, equipment, and services shall be furnished and
said work performed and completed under the direction and supervision and subject to the
approval of the Owner or its authorized representatives.
ARTICLE II, CONTRACT PRICE: The Owner shall pay the Contractor as full consideration
for the faithful performance of this Contract, subject to any additions or deductions as
provided in the Contract Documents, the contract prices as follows:
Item Item Unit of Estimated Item Price Total
No. Description Measure Quantity (in figures) (in figures)
1 TEMPORARY TRAFFIC CONTROL &
MOBILIZATION LS 1 $25,000.00 $25,000.00
2 COMPLY WITH NIGHT WORK
PERMIT LS 1 $12,670.00 $12,670.00
3 NORTHWEST CURB RAMP: SOUTH
ST & KING STREET LS 1 $29,600.00 $29,600.00
4 SOUTHWEST CURB RAMP: SOUTH
ST & KING COURT LS 1 $33,300.00 $33,300.00
5 SOUTHEAST CURB RAMP: SOUTH
ST & KING COURT LS 1 $34,500.00 $34,500.00
6 NORTHEAST CURB RAMP: SOUTH
ST & KING STREET LS 1 $32,100.00 $32,100.00
Docusign Envelope ID: 94C0B361-6ECF-442F-AD42-0B380BF39FD1
Page 121 of 525
7 SOUTH ST & KING STREET WEST
MEDIAN LS 1 $5,900.00 $5,900.00
8 RELOCATE CITY BENCHMARK EA 1 $2,750.00 $2,750.00
9 REMOVE (E) PAVEMENT
MARKINGS LS 1 $4,400.00 $4,400.00
10 FOG SEAL SQFT 5,700 $0.60 $3,420.00
11 WHITE THERMOPLASTIC
PAVEMENT MARKINGS SQFT 132 $16.50 $2,178.00
12 CURB PAINT LF 215 $2.20 $473.00
13 THERMOPLASTIC – 12”
WHITE/YELLOW STRIPE LF 330 $5.50 $1,815.00
14 THERMOPLASTIC – 24”’
WHITE/YELLOW STRIPE LF 448 $8.25 $3,696.00
15 THERMOPLASTIC – DETAIL 22 LF 100 $3.30 $330.00
16 THERMOPLASTIC – DETAIL 25 LF 25 $5.60 $140.00
17 THERMOPLASTIC – DETAIL 38 LF 20 $5.50 $110.00
18 THERMOPLASTIC – DETAIL 39A LF 130 $3.30 $429.00
19 THERMOPLASTIC ‐ BIKE BUFFER
STRIPE LF 50 $8.80 $440.00
20 GREEN BIKE LANE SQFT 250 $19.80 $4,950.00
21 FLEX POST EA 4 $385.00 $1,540.00
22 REMOVE SIGN AND POST EA 7 $165.00 $1,155.00
23 R10‐3i(L/R) SIGN EA 4 $220.00 $880.00
24 R10‐3 SIGN EA 2 $110.00 $220.00
25 R4‐7 SIGN EA 2 $125.00 $250.00
26 OM1‐1 OBJECT MARKER EA 2 $110.00 $220.00
27 R10‐23A SIGN EA 2 $165.00 $330.00
28 R118 SIGN EA 2 $165.00 $330.00
29 R10‐6 SIGN EA 2 $165.00 $330.00
30 R9‐5 SIGN EA 2 $165.00 $330.00
31 STREET NAME SIGN ON SIGNAL
POLE EA 4 $1,320.00 $5,280.00
32 REINSTALL SALVAGED SIGN EA 3 $83.00 $249.00
33 REINSTALL SALVAGED POST EA 5 $305.00 $1,525.00
34
INSTALL CITY‐FURNISHED
ELECTRICAL SERVICE PEDESTAL &
FOUNDATION
LS 1 $6,336.00 $6,336.00
35
FURNISH (N) ELECTRICAL SERVICE
PEDESTAL, DELIVER TO CITY
SIGNAL SHOP
LS 1 $10,450.00 $10,450.00
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36 FURNISH & INSTALL BATTERY
BACKUP SYSTEM EA 1 $3,850.00 $3,850.00
37 REMOVE AND SALVAGE (E) RRFB
SYSTEM LS 1 $2,120.00 $2,120.00
38 ADDITIONAL PAVEOUT
ALLOWANCE (6” THICKNESS) SQFT 40 $50.00 $2,000.00
39 ADDITIONAL PAVEOUT
ALLOWANCE (10” THICKNESS) SQFT 40 $100.00 $4,000.00
40 SIDEWALK REPLACEMENT
ALLOWANCE SQFT 250 $25.00 $6,250.00
41 CURB AND GUTTER
REPLACEMENT ALLOWANCE LF 48 $120.00 $5,760.00
42
FURNISH AND INSTALL
CONTROLLER CABINET AND
FOUNDATION
EA 1 $20,350.00 $20,350.00
43
FURNISH AND INSTALL TYPE 26‐4‐
100 SIGNAL POLE, FOUNDATION,
40' MAST ARM, AND 15'
LUMINAIRE ARM
EA 1 $28,050.00 $28,050.00
44
FURNISH AND INSTALL TYPE 19‐4‐
100 SIGNAL POLE, FOUNDATION,
25' MAST ARM, AND 10'
LUMINAIRE ARM
EA 2 $22,550.00 $45,100.00
45
FURNISH AND INSTALL TYPE 19A‐
4‐100 SIGNAL POLE,
FOUNDATION, 30' MAST ARM,
AND 10' LUMINAIRE ARM
EA 1 $22,000.00 $22,000.00
46
FURNISH AND INSTALL TYPE 15TS
POLE, FOUNDATION AND 10'
LUMINAIRE ARM
EA 2 $13,200.00 $26,400.00
47 FURNISH AND INSTALL TYPE 1‐A
SIGNAL POLE AND FOUNDATION EA 2 $9,350.00 $18,700.00
48 FURNISH AND INSTALL TYPE 2
POST AND FOUNDATION EA 3 $2,750.00 $8,250.00
49 FURNISH AND INSTALL OPTICOM
EVP SYSTEM LS 1 $18,150.00 $18,150.00
50
FURNISH AND INSTALL 3‐SECTION
PEDESTRIAN HYBRID BEACON
INDICATOR AND MOUNTING
EA 8 $2,222.00 $17,776.00
51
FURNISH AND INSTALL CUSTOM
BLANKOUT SIGN & ASSEMBLY ON
SIGNAL MAST ARM
EA 2 $4,125.00 $8,250.00
52 FURNISH AND INSTALL
PEDESTRIAN SIGNAL HEAD EA 4 $1,221.00 $4,884.00
53 FURNISH AND INSTALL APS PPB EA 4 $2,215.00 $8,860.00
54 FURNISH AND INSTALL NON‐APS
BIKE PPB EA 2 $495.00 $990.00
Docusign Envelope ID: 94C0B361-6ECF-442F-AD42-0B380BF39FD1
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55 FURNISH AND INSTALL LED
LUMINAIRE EA 6 $715.00 $4,290.00
56 FURNISH AND INSTALL NO. 6E
PULL BOX EA 2 $3,152.00 $6,304.00
57 FURNISH AND INSTALL NO. 5 PULL
BOX EA 7 $1,738.00 $12,166.00
58 FURNISH AND INSTALL 4"
CONDUIT LF 295 $50.00 $14,750.00
59 FURNISH AND INSTALL 3"
CONDUIT LF 80 $38.50 $3,080.00
60 FURNISH AND INSTALL NEW
CONDUCTORS AND CABLES LS 1 $49,720.00 $49,720.00
61 FURNISH AND INSTALL VIDEO
DETECTION SYSTEM LS 1 $38,720.00 $38,720.00
62 FURNISH AND INSTALL CCTV
CAMERA LS 1 $6,160.00 $6,160.00
63
FURNISH AND INSTALL TRAFFIC
SIGNAL CONTROLLER AND
SOFTWARE
EA 1 $9,790.00 $9,790.00
64 FURNISH, INSTALL, AND
CONFIGURE WIRELESS RADIO EA 1 $5,720.00 $5,720.00
65 FURNISH AND INSTALL #2 PG&E
JUNCTION BOX EA 1 $2,750.00 $2,750.00
Bid Total $632,816.00
Payments are to be made to the Contractor in compliance with and subject to the provisions
embodied in the documents made a part of this Contract.
Should any dispute arise respecting the true value of any work omitted, or of any extra work
which the Contractor may be required to do, or respecting the size of any payment to the
Contractor, during the performance of this Contract, said dispute shall be decided by the
Owner and its decision shall be final, and conclusive.
ARTICLE III, COMPONENT PARTS OF THIS CONTRACT: The Contract consists of the
following documents, all of which are as fully a part thereof as if herein set out in full, and if
not attached, as if hereto attached:
1. Notice to Bidders and Information for Bidders
2. Standard Specifications and Engineering Standards
3. Special Provisions, any Addenda, Plans and Contract Change Orders
4. Caltrans Standard Specifications and Standard Plans 2015
5. Accepted Bid and Bid Bond
6. List of Subcontractors
7. Public Contract Code Sections 10285.1 Statement
8. Public Contract Code Section 10162 Questionnaire
Docusign Envelope ID: 94C0B361-6ECF-442F-AD42-0B380BF39FD1
Page 124 of 525
9. Public Contract Code Section 10232 Statement
10. Labor Code Section 1725.5 Statements
11. Bidder Acknowledgements
12. Qualifications
13. Non-collusion Declaration
14. Agreement and Bonds
15. Insurance Requirements and Forms
ARTICLE IV INDEMNIFICATION: The Contractor shall indemnify, defend with legal
counsel approved by City, and hold harmless City, its officers, officials, employees and
volunteers from and against all liability, loss, damage, expense, cost (including without
limitation reasonable legal counsel fees, expert fees and all other costs and fees of
litigation) of every nature arising out of or in connection with the Contractor’s negligence,
recklessness or willful misconduct in the performance of work hereunder or its failure to
comply with any of its obligations contained in this Agreement, except such loss or damage
which is caused by the sole or active negligence or willful misconduct of the City. Should
conflict of interest principles preclude a single legal counsel from representing both the City
and the Contractor, or should the City otherwise find the Contractor’s legal counsel
unacceptable, then the Contractor shall reimburse the City its costs of defense, including
without limitation reasonable legal counsel fees, expert fees and all other costs and fees of
litigation. The Contractor shall promptly pay any final judgment rendered against the City
(and its officers, officials, employees and volunteers) with respect to claims determined by
a trier of fact to have been the result of the Contractor’s negligent, reckless or wrongful
performance. It is expressly understood and agreed that the foregoing provisions are
intended to be as broad and inclusive as is permitted by the law of the State of California
and will survive termination of this Agreement.
The Contractor obligations under this section apply regardless of whether such claim,
charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment,
civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee.
However, without affecting the rights of the City under any provision of this agreement, the
Contractor shall not be required to indemnify and hold harmless the City for liability
attributable to the active negligence of City, provided such active negligence is determined
by agreement between the parties or by the findings of a court of competent jurisdiction. In
instances where the City is shown to have been actively negligent and where the City’s
active negligence accounts for only a percentage of the liability involved, the obligation of
the Contractor will be for that entire portion or percentage of liability not attributable to the
active negligence of the City.
ARTICLE V. It is further expressly agreed by and between the parties hereto that should
there be any conflict between the terms of this instrument and the bid of said Contractor,
then this instrument shall control and nothing herein shall be considered as an acceptance
of the said terms of said bid conflicting herewith.
IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands this
year and date first above written.
Docusign Envelope ID: 94C0B361-6ECF-442F-AD42-0B380BF39FD1
Page 125 of 525
ATTEST:
___________________________________
Teresa Purrington, City Clerk
CITY OF SAN LUIS OBISPO
A Municipal Corporation
________________________________
Erica A. Stewart, Mayor
APPROVED AS TO FORM
___________________________________
J. Christine Dietrick
City Attorney
CONTRACTOR:
JJ Fisher Construction, Inc.
________________________________
Jayson J Fisher
Chief Executive Officer
________________________________
Mark Sczbecki
Secretary, Chief Financial Officer
Docusign Envelope ID: 94C0B361-6ECF-442F-AD42-0B380BF39FD1
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Item 6i
Department: Utilities
Cost Center: 601-6001
For Agenda of: 1/13/2026
Placement: Consent
Estimated Time: NA
FROM: Aaron Floyd, Public Works and Utilities Director
Prepared By: Mychal Boerman, Utilities Deputy Director - Water
SUBJECT: APPROVAL OF A REIMBURSEMENT AGREEMENT WITH THE COUNTY
OF SAN LUIS OBIPSO FOR THE SALINAS DAM FEASIBILITY STUDY
RECOMMENDATION
1. Adopt a resolution entitled “A Resolution of the City Council of San Luis Obispo ,
California, Approving a Reimbursement Agreement with the San Luis Obispo County
Flood Control and Water Conservation District to Support the Salinas Dam Feasibility
Study;” and
2. Authorize the City Manager to execute the Reimbursement Agreement and related
documents; and
3. Find the action exempt from the California Environmental Quality Act.
POLICY CONTEXT
The Salinas Reservoir (Santa Margarita Lake) is a significant component of the City’s
surface water supply portfolio. The Salinas Reservoir and Dam were built in 1941 under
a military directive to supply water to Camp San Luis Obispo to support training needs for
the U.S. Army during World War II. Soon after it was built, Camp San Luis Obispo no
longer had the need for housing large numbers of personnel, and the military transferred
the reservoir and dam ownership to the Army Corps of Engineers (USACE) in 1955.
USACE subsequently leased the facility to the San Luis Obispo County Flood Control and
Water Conservation District (District) to operate the dam to provide water supply for the
City of San Luis Obispo.
The Salinas Dam is currently owned by USACE and leased to the District for operation
and maintenance. The Federal government has determined that the Dam no longer
serves a federal purpose and USACE has initiated steps under a Disposition Study1 to
evaluate transfer of ownership to a local agency. This step by the Federal government is
consistent with the City Council’s adopted 2025 Legislative Platform which states that the
City is supportive of “Federal and state funding that would allow for transfer of Salinas
Reservoir from the Army Corps of Engineers to the County or City of San Luis Obispo.”
1 Authorized under Section 216 of the Flood Control Act of 1970, a disposition study gives USACE the
authority to evaluate a project which is no longer serving its authorized purpose.
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Item 6i
In 2024, Congress included language in the Water Resources Development Act (WRDA)
of 2024 to authorize conveyance of the Salinas Dam and d irected USACE to consult with
federal and non-federal partners to ensure that the property meets both federal and state
dam safety requirements. The State also allocated $500,000 through Assembly Bill 102
(AB 102) to support a feasibility analysis regarding potential transfer, retrofit, or expansion
of the facility.
The City’s General Plan Water and Wastewater Element (WWE) identifies the Reservoir
as a water supply source for the City and includes a policy that the City utilize multiple
water resources to meet its water supply needs (Policy A.2.2.1 Multi -Source Water
Supply). WWE Programs A.2.3.1 and A.2.3.5 state that the City will work cooperatively
on regional water issues and water resource planning, and continue to work with the
County on the operation and maintenance of the Salinas Reservoir. The proposed
Reimbursement Agreement aligns with the City’s long-term water supply strategy and
General Plan policies and programs, ensuring the City remains an active partner in the
technical, legal, regulatory, and financial analysis required for assessing potential local
ownership of a critical regional water asset.
DISCUSSION
Background
The Salinas Dam was constructed by the
Federal government in 1941 and the
Reservoir currently stores raw water that is
conveyed to the City’s Water Treatment
Plant for treatment and distribution to City
customers for domestic uses. The Dam is
operated and maintained by the District
under a lease agreement with USACE, and
the County separately leases surrounding
administrative and recreational lands.
USACE initiated a Disposition Study in 2018
to evaluate options for disposal of federal
property, including potential transfer of
Salinas Dam ownership to a local entity. On September 22, 2020, the San Luis Obispo
County Board of Supervisors authorized submittal of a Letter of Interest to USACE
expressing interest in ownership transfer. Subsequent County presentations identified the
significant technical, regulatory, seismic, environmental, cultural, and governance
questions that must be evaluated before an ownership transfer can be responsibly
considered. These issues will need to be evaluated in a feasibility study regarding the
potential transfer of ownership, and associated retrofits that may be necessary to meet
State Division of Safety of Dam (DSOD) standards (which exceed federal regulations
governing the Dam).
To support this work, State Assembly Bill (AB) 102 allocated $500,000 to the County to
aid in the completion of a Salinas Dam Feasibility Study. The County conducted a
Page 128 of 525
Item 6i
competitive procurement process and selected Tetra Tech BAS, Inc. (Consultant) to
conduct the study, with a contract value of $1,1 75,884, plus a 10% contingency of
$117,588, for a total of $1,293,472.
Feasibility Study Scope of Work
The Scope of Work for this project/study includes:
Project Management & Progress Reporting over a 24-month period.
Stakeholder Engagement, including DSOD, USACE, the State Historic
Preservation Office (SHPO), landowners, recreation stakeholders, Native
American tribal representatives, non-governmental organizations, and the County
Water Resources Advisory Committee (WRAC).
Conditions Assessment & Data Gap Identification, covering civil, structural,
mechanical, electrical, hydrology/hydraulics, geology, seismic, environmental, and
regulatory baselines.
Conceptual Alternatives Analysis, including retrofit concepts, regulatory
pathways, water rights implications, rough order of magnitude capital and
operations and maintenance costs, and a risk-benefit evaluation.
Vetting, Ranking & Recommendation, using a multi-criteria evaluation matrix
with partner workshops that include City staff.
Feasibility Study & 10% Design Package for the preferred alternative.
Planning for Future Phases, including regulatory roadmaps, milestones, and
cost estimates.
At the December 16, 2025 Board of Supervisors Meeting, the District approved the
execution of a contract to have Tetra Tech perform the proposed work and approve d the
proposed reimbursement agreement with the City. If approved by City Council, County
staff will finalize the funding agreement and provide Tetra Tech with a Notice to Proceed
(NTP) for the study.
Funding Structure
The County has proposed a Reimbursement Agreement between the District and the City
to cover the costs of completing the Feasibility Study (Attachment B). This
Reimbursement Agreement outlines the following:
The $500,000 AB 102 State allocation will be fully applied toward project costs
before City and District funds are spent.
The remaining cost will be shared equally between the District and the City.
The City will reimburse the County 50% of costs after the State funds are
exhausted, up to a maximum City contribution of $600,000, which accounts for the
City’s share of currently identified study costs and potential additional costs beyond
the currently identified 10% contingency.
Based on the County’s staff report from the December 16, 2025 Board of Supervisors
Meeting, project costs will be shared as follows:
Total project cost (including contingency): $1,293,472
Less AB 102 grant: $500,000
Remaining: $793,472
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Item 6i
50% City share (expected): $396,736
City’s contractual maximum: $600,000
Previous Council or Advisory Body Action
The City Council approved $150,000 for this study as part of the 2023-25 Financial Plan
(CIP #52 - Page 422). As part of the 2024-25 Supplemental Budget (Page 62) the City
Council approved an additional $550,000 in funding for a cumulative total of $700,000.
Public Engagement
Public engagement will be led by the County as part of the Feasibility Study’s stakeholder
process and includes public meetings, workshops with WRAC, coordination with agency
partners, and preparation of public-facing materials.
CONCURRENCE
The City Attorney’s Office has reviewed the Reimbursement Agreement and has
approved to legal form.
ENVIRONMENTAL REVIEW
The City Council’s approval of the Reimbursement Agreement is statutorily exempt from
the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines
Section 15262 (Planning and Feasibility Studies) as it involves a cost-sharing agreement
for a feasibility and planning study with no direct physical impact. Approval of the
Agreement and the County’s implementation of the feasibility study does not commit the
City to any future action or project. Any future actions regarding Dam ownership, design,
or construction would require compliance with CEQA. Environmental factors likely to be
considered and evaluated for any action that would result in a physical impact or change
to the environment include, but are not limited to: aesthetics, agriculture, air quality,
biological resources, cultural resources, energy, geology/soils, greenhouse gas
emissions, hazards and hazardous materials, hydrology/water quality, land use, mineral
resources, noise, recreation, transportation, and tribal cultural resources.
FISCAL IMPACT
The total project cost for the feasibility study, including a 10% contingency, is $1,293,472.
The project would be funded by the AB 102 grant ($500,000), the District ($396,736), and
the City ($396,736 if the Reimbursement Agreement is approved by the City Council).
The Agreement includes a not-to-exceed City contribution of $600,000 to allow for
potential amendments or scope adjustments. With $700,000 budgeted for this Project
2001047 (Salinas Reservoir Transfer of Ownership Plan), and $600,000 requested for
potential use by the County, $100,000 will remain unused at this time. Should additional
need arise for studies related to the transfer of ownership of the Salinas Dam, the City
Council could authorize this funding to be utilized for these purposes at a future date.
Budgeted: Yes Budget Year: 2025-26
Funding Identified: Yes
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Item 6i
Fiscal Analysis:
Funding Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
City Water Fund
(Project #2001047)
$700,000 $600,000 $100,000 NA
The City Council previously appropriated $700,000 for this work—$150,000 in the 2023–
25 Financial Plan and an additional $550,000 in the 2024 –25 Supplemental Budget—
providing sufficient funding for the maximum City obligation. No additional funding is being
requested at this time.
Participating in the study is financially prudent because it leverages available State funds,
shares remaining costs equally with the County, and provides essential information about
long-term capital, regulatory, and liability obligations before any ownership or construction
decisions are made, helping protect ratepayers and supporting Council -approved water
supply policies.
ALTERNATIVES
1. Council could request a modified Reimbursement Agreement with a different
proportion of cost sharing for each involved entity. Should Council pursue this
option, the project could be delayed or hindered due to insufficient funds in the event
of potential and necessary scope amendments. Amendments to the Reimbursement
Agreement would also trigger the need for the County Board of Supervisors to
reapprove the new agreement.
2. Council could deny authorization of the Reimbursement Agreement. Should
Council deny authorization of the Agreement, the County would not move forward with
the Feasibility Study, and the City and County would not obtain the analysis and
information necessary to fully consider transfer of ownership of the Dam to the County
and evaluate the physical improvements, costs and other factors related to transfer of
ownership. If the County is not able to effectively plan for a potential transfer of
ownership, the County and City could potentially risk losing the long-term ownership
of the Dam to another agency or risk the am being removed. While the City would
retain its water rights, a potential future scenario (where the County is not able to
secure ownership of the Dam) may necessitate new agreements with another agency
related to operation of the Dam and diversion of water to the City.
ATTACHMENTS
A - Draft Resolution approving the Reimbursement Agreement for the proposed feasibility
study
B - Salinas Dam Feasibility Study Reimbursement Agreement
C - Salinas Dam Feasibility Study Scope of Work
Page 131 of 525
Page 132 of 525
R ______
RESOLUTION NO. _____ (2026 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING A REIMBURSEMENT
AGREEMENT WITH THE SAN LUIS OBISPO COUNTY FLOOD
CONTROL AND WATER CONSERVATION DISTRICT TO SUPPORT
THE SALINAS DAM FEASIBILITY STUDY
WHEREAS, the Salinas Dam is owned by the United States Army Corps of
Engineers (USACE); and
WHEREAS, the USACE leases the Dam to the San Luis Obispo County Flood
Control and Water Conservation District (District) for its operation, maintenance, and
delivery of water to the City; and
WHEREAS, the USACE is undertaking a federal disposition process evaluating
options for divestiture of the Salinas Dam, including potential transfer of ownership to a
local public agency; and
WHEREAS, the State of California has allocated $500,000 through Assembly Bill
102 to partially fund a Salinas Dam Feasibility Study to assess engineering, regulatory,
seismic, environmental, and governance considerations needed to inform any future
ownership decision; and
WHEREAS, following a competitive procurement process, the District has selected
Tetra Tech BAS, Inc. to conduct the Feasibility Study; and the District will enter into a
Professional Services Agreement not to exceed $1,293,472, inclusive of contingency; and
WHEREAS, the Feasibility Study is expected to benefit both the District and the
City by evaluating Dam condition, retrofit options, reservoir capacity, seismic and geologic
requirements, regulatory pathways, water rights implications, and long-term operational
responsibilities, thereby informing regional water supply reliability planning; and
WHEREAS, the District and City desire to jointly fund the remaining cost of the
Feasibility Study after the State allocation is fully expended; and
WHEREAS, under the proposed Funding Agreement, the City will reimburse the
District for 50% of the remaining consultant costs after the State’s $500,000 contribution
is exhausted, not to exceed a maximum City contribution of $600,000; and
WHEREAS, approval of the Funding Agreement is necessary for the City to
participate as a partner in the Feasibility Study and secure access to all consultant work
products, technical analyses, stakeholder engagement activities, and recommendations
regarding the Dam’s future.
Page 133 of 525
Resolution No. _____ (202X Series) Page 2
R ______
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The City Council hereby approves the Funding Agreement between
the City of San Luis Obispo and the San Luis Obispo County Flood Control and Water
Conservation District for the Salinas Dam Feasibility Study, attached hereto as Exhibit 1
and incorporated herein by reference.
SECTION 2. The City Council authorizes the City Manager, or designee, to
execute the Funding Agreement (Exhibit 1) and to take any administrative actions
necessary to implement the Agreement consistent with its terms.
SECTION 3. The City Council authorizes the City Manager, or designee, to
prepare and submit payments to the District in accordance with the Funding Agreement,
including reimbursement of 50% of eligible consultant costs after the State’s allocation
has been expended, not to exceed a total City contribution of $600,000.
SECTION 3. Environmental Review. The action is statutorily exempt from the
California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section
15262 (Planning and Feasibility Studies) as it involves a cost -sharing agreement for a
feasibility and planning study with no direct physical impact. Approval of the Agreement
and the County’s implementation of the feasibility study does not commit the City to any
future action or project. Any future actions regarding Dam ownership, design, or
construction would require compliance with CEQA.
Upon motion of Council Member ___________, seconded by Council Member
___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 202 6.
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
Page 134 of 525
Resolution No. _____ (202X Series) Page 3
R ______
______________________
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 135 of 525
Resolution No. _____ (202X Series) Page 4
R ______
EXHIBIT 1
Reimbursement Agreement
Salinas Dam Feasibility Study
This Reimbursement Agreement (“Agreement”) is made on this ____ day of _______,
2025 by and between the San Luis Obispo County Flood Control and Water Conservation
District (“District”) and the City of San Luis Obispo (“City”), collectively referred to herein as
the “Parties”.
RECITALS
WHEREAS, the U.S. Army Corps of Engineers (“USACE”) owns the Salinas Dam
(“Dam”) and jointly holds water rights permits with the City; and
WHEREAS, the USACE leases the Dam to the District for its operation and
maintenance, which includes water delivery to the City; and
WHEREAS, the USACE has been evaluating options for disposal of the Dam, including
transferring ownership to a local agency such as the District; and
WHEREAS, said transfer is an opportunity to secure existing and/or additional water supplies
to address needs in the County of San Luis Obispo; and
WHEREAS, to evaluate the transfer, a feasibility analysis of dam ownership, condition,
and retrofit/improvement (“Feasibility Study”) would be required; and
WHEREAS, the State of California has provided a grant to the District in the amount of
$500,000 (“State Grant”) to partially fund the Feasibility Study;
WHEREAS, after a competitive procurement process, the District has tentatively
selected Tetra Tech BAS, Inc. (“Consultant”) to perform the Feasibility Study and enter into an
Agreement for Professional Services (“Consultant Contract”) with the Consultant, attached
hereto as Exhibit “A” and incorporated by this reference; and
WHEREAS, the District and the City have a common interest in the performance of the
Feasibility Study and desire to jointly contribute the additional funding necessary for the
completion of the work.
NOW, THEREFORE, it is hereby mutually agreed by the Agencies and District as
follows:
1. The above recitals are true and correct and are incorporated herein by this
reference.
Page 136 of 525
Resolution No. _____ (202X Series) Page 5
R ______
2. Prior to the payment of any funds by the City, the District shall expend the State
Grant, in a manner consistent with the terms of the grant, to pay invoices received
from the Consultant.
3. Once the State Grant is fully expended, the City shall pay the District a sum equal
to fifty (50%) of the costs of each remaining invoice from the Consultant. The
City shall make said payment within thirty (30) days of the receipt of each invoice
from the District.
4. Notwithstanding Paragraph 3 above, the City’s payment obligation pursuant to
this Agreement shall not exceed six hundred thousand dollars ($600,000) unless
otherwise agreed by the Parties in writing.
5. Nothing herein shall be interpreted to create a contractual relationship between
the Consultant and the City, nor to obligate or subject the City to any of the terms
of the Consultant Agreement.
6. The District’s contract with the Contractor require the Contractor to maintain
accounting records for contract billings, a monthly detailed statement of all
services performed to be billed at rates set forth in the Consultant’s Cost Proposal,
and a requirement to repay any disallowed costs in Articles 3 and 4 of Exhibit A.
The District and City have a common interest in ensuring that all billings for
services provided are accurate and in accordance with approved work and
services.
7. This Agreement has been executed and delivered in, and shall be interpreted,
construed, and enforced pursuant to and in accordance with the laws of the State
of California. All duties and obligations of the parties created hereunder are
performable in the County of San Luis Obispo; and such County shall be that
venue for any action or proceeding that may be brought or arise out of, in
connection with, or by reason of, this Agreement.
8. If any term, covenant, condition, or provision of this Agreement is held by a court
of competent jurisdiction to be invalid, void, or unenforceable, the remainder of
the provisions hereof shall remain in full force and effect and shall in no way be
affected, impaired, or invalidated thereby. 5.
9. Unless otherwise provided, all notices herein required shall be in writing, and
delivered in person or sent by United States first class mail, postage prepaid.
Notices required to be given to County shall be addressed as follows:
Department of Public Works
Attn: Public Works Director
976 Osos Street STE 207 San Luis Obispo, CA 93408
Notices required to be given to City shall be addressed as follows:
City of San Luis Obispo
Page 137 of 525
Resolution No. _____ (202X Series) Page 6
R ______
Attn: Utilities Director
879 Morro Street
San Luis Obispo, CA 93401
10. This Agreement is intended by the parties as a final expression of their
understanding with respect to the matters contained herein and is a complete and
exclusive statement of the terms and conditions thereof
11. The parties acknowledge that each party and its attorneys have reviewed,
negotiated and revised this Agreement; and that the normal rule of construction to
the effect that any ambiguities are to be resolved against the drafting party shall
not be employed in the interpretation of this Agreement or any document
executed and delivered by any party in connection with the transactions
contemplated by this Agreement
12. This Agreement shall not be changed or modified except upon written consent of
all of the Parties.
13. This Agreement may be executed in counterparts, each of which shall be deemed
an original and all of which shall constitute a single instrument. Signature pages
may be detached from individual counterparts and attached to a single or multiple
original(s) in order to form a single or multiple originals of this Agreement.
Page 138 of 525
Resolution No. _____ (202X Series) Page 7
R ______
IN WITNESS WHEREOF, the City has executed this Agreement with the approval of
its governing body, and District has executed this Agreement in accordance with the
authorization of the Board of Supervisors.
City of San Luis Obispo
By:
Date: , 20____
APPROVED AS TO FORM AND LEGAL EFFECT:
J. CHRISTINE DIETRICK
City Attorney
By:
Date: , 20____
SAN LUIS OBISPO COUNTY FLOOD CONTROL AND
WATER CONSERVATION DISTRICT
By:
Date: , 20____
APPROVED AS TO FORM AND LEGAL EFFECT:
JON ANSOLABEHERE
County Counsel
By:
Deputy County Counsel
Date: , 20____
Page 139 of 525
Page 140 of 525
Page 1
Reimbursement Agreement
Salinas Dam Feasibility Study
This Reimbursement Agreement (“Agreement”) is made on this ____ day of _______, 2025 by
and between the San Luis Obispo County Flood Control and Water Conservation District (“District”)
and the City of San Luis Obispo (“City”), collectively referred to herein as the “Parties”.
RECITALS
WHEREAS, the U.S. Army Corps of Engineers (“USACE”) owns the Salinas Dam (“Dam”) and
jointly holds water rights permits with the City; and
WHEREAS, the USACE leases the Dam to the District for its operation and maintenance,
which includes water delivery to the City; and
WHEREAS, the USACE has been evaluating options for disposal of the Dam, including
transferring ownership to a local agency such as the District; and
WHEREAS, said transfer is an opportunity to secure existing and/or additional water supplies
to address needs in the County of San Luis Obispo; and
WHEREAS, to evaluate the transfer, a feasibility analysis of dam ownership, condition, and
retrofit/improvement (“Feasibility Study”) would be required; and
WHEREAS, the State of California has provided a grant to the District in the amount of
$500,000 (“State Grant”) to partially fund the Feasibility Study;
WHEREAS, after a competitive procurement process, the District has tentatively selected
Tetra Tech BAS, Inc. (“Consultant”) to perform the Feasibility Study and enter into an Agreement for
Professional Services (“Consultant Contract”) with the Consultant, attached hereto as Exhibit “A” and
incorporated by this reference; and
WHEREAS, the District and the City have a common interest in the performance of the
Feasibility Study and desire to jointly contribute the additional funding necessary for the completion
of the work.
NOW, THEREFORE, it is hereby mutually agreed by the Agencies and District as follows:
1. The above recitals are true and correct and are incorporated herein by this reference.
2. Prior to the payment of any funds by the City, the District shall expend the State
Grant, in a manner consistent with the terms of the grant, to pay invoices received
from the Consultant.
3. Once the State Grant is fully expended, the City shall pay the District a sum equal to
fifty (50%) of the costs of each remaining invoice from the Consultant. The City shall
Page 141 of 525
Page 2
make said payment within thirty (30) days of the receipt of each invoice from the
District.
4. Notwithstanding Paragraph 3 above, the City’s payment obligation pursuant to this
Agreement shall not exceed six hundred thousand dollars ($600,000) unless
otherwise agreed by the Parties in writing.
5. Nothing herein shall be interpreted to create a contractual relationship between the
Consultant and the City, nor to obligate or subject the City to any of the terms of the
Consultant Agreement.
6. The District’s contract with the Contractor require the Contractor to maintain
accounting records for contract billings, a monthly detailed statement of all services
performed to be billed at rates set forth in the Consultant’s Cost Proposal, and a
requirement to repay any disallowed costs in Articles 3 and 4 of Exhibit A. The District
and City have a common interest in ensuring that all billings for services provided are
accurate and in accordance with approved work and services.
7. This Agreement has been executed and delivered in, and shall be interpreted,
construed, and enforced pursuant to and in accordance with the laws of the State of
California. All duties and obligations of the parties created hereunder are
performable in the County of San Luis Obispo; and such County shall be that venue
for any action or proceeding that may be brought or arise out of, in connection with,
or by reason of, this Agreement.
8. If any term, covenant, condition, or provision of this Agreement is held by a court of
competent jurisdiction to be invalid, void, or unenforceable, the remainder of the
provisions hereof shall remain in full force and effect and shall in no way be affected,
impaired, or invalidated thereby. 5.
9. Unless otherwise provided, all notices herein required shall be in writing, and
delivered in person or sent by United States first class mail, postage prepaid. Notices
required to be given to County shall be addressed as follows:
Department of Public Works
Attn: Public Works Director
976 Osos Street STE 207 San Luis Obispo, CA 93408
Notices required to be given to City shall be addressed as follows:
City of San Luis Obispo
Attn: Utilities Director
879 Morro Street
San Luis Obispo, CA 93401
Page 142 of 525
Page 3
10. This Agreement is intended by the parties as a final expression of their understanding
with respect to the matters contained herein and is a complete and exclusive
statement of the terms and conditions thereof
11. The parties acknowledge that each party and its attorneys have reviewed, negotiated
and revised this Agreement; and that the normal rule of construction to the effect
that any ambiguities are to be resolved against the drafting party shall not be
employed in the interpretation of this Agreement or any document executed and
delivered by any party in connection with the transactions contemplated by this
Agreement
12. This Agreement shall not be changed or modified except upon written consent of all
of the Parties.
13. This Agreement may be executed in counterparts, each of which shall be deemed an
original and all of which shall constitute a single instrument. Signature pages may be
detached from individual counterparts and attached to a single or multiple original(s)
in order to form a single or multiple originals of this Agreement.
Page 143 of 525
Page 4
IN WITNESS WHEREOF, the City has executed this Agreement with the approval of its
governing body, and District has executed this Agreement in accordance with the authorization of
the Board of Supervisors.
City of San Luis Obispo
By:
Date: , 20____
APPROVED AS TO FORM AND LEGAL EFFECT:
J. CHRISTINE DIETRICK
City Attorney
By:
Date: , 20____
SAN LUIS OBISPO COUNTY FLOOD CONTROL AND
WATER CONSERVATION DISTRICT
By:
Date: , 20____
APPROVED AS TO FORM AND LEGAL EFFECT:
JON ANSOLABEHERE
County Counsel
By:
Deputy County Counsel
Date: , 20____
Page 144 of 525
Exhibit A - Scope of Work
Task 1: Project Management
• General project management (scheduling, coordination, staff management, invoicing) over the
course of the project.
• Submittal of monthly progress reports to the County.
• Bi-monthly virtual progress meetings. Meetings to be attended by Tetra Tech Project Manager and
specific discipline Task Leaders as appropriate.
Task 1 Deliverables:
1) Monthly progress reports.
2) Meeting agendas and materials (e.g., presentations, minutes)
Task 1 Assumptions:
1) The effort assumes a 24-month project schedule.
2) 12 Bi-monthly progress meetings are assumed to be virtual and 1 hour each.
Task 2: Stakeholder Engagement
• Develop and implement Stakeholder Engagement Plan: Identify key stakeholders, including
landowners and community groups, environmental and historical preservation groups, riparian
landowners, WRAC, NGOs, and recreation partners, as well other governmental entities, including
the State of California DSOD, USACE, City of San Luis Obispo. The Tetra Tech Team will develop an
engagement plan outlining communication strategy, meeting schedules, and feedback mechanisms.
• Regulatory Coordination: Establish early and ongoing dialogue regulatory agencies, including DSOD,
to align seismic safety and retrofit expectations, and the State Historic Preservation Officer, given
the dam’s historical significance.
• Public and Agency Meetings: Present key milestones at WRAC, the Board of Supervisors, and other
public meetings to share progress and solicit feedback.
• Documentation and Feedback Integration: Maintain a stakeholder log to track feedback. Integrate
stakeholder input into the development and evaluation of conceptual alternatives.
Task 2 Deliverables:
1) Admin draft, partner draft and final Stakeholder Engagement Plan
2) Other deliverables as defined in the Stakeholder Engagement Plan (e.g., exhibits, website content,
presentations, message points)
3) Stakeholder log and engagement meeting minutes/outcomes
Task 3 Assumptions:
1) Meetings are assumed to be virtual and 1-hour, unless otherwise specified.
2) Anticipate up to 6 meetings with regulatory and partner agencies, 4 meetings with other key
stakeholders as identified.
3) Deliverables development will include one round of review and comment incorporation.
4) Submittals shall be provided in electronic copy in native file format (e.g., .docx, .pdf, .ppt)
Task 3: Conditions Assessment & Data Gaps Identification
• Document Compilation & Review: Index and synthesize historic and recent reports, O&M manuals,
logs and studies (e.g., environmental review documents, inspection logs, seismic TMs,
tunnel/pipeline assessments, emergency response plans, O&M manuals, USACE studies) as they
relate to the civil, H&H, structural, geotechnical, electrical, mechanical, and environmental
components of the project. Page 145 of 525
• Desktop Evaluation: Establish system parameters including reservoir capacity, drainage,
outlet/spillway configuration, booster/tunnel details, and operational release practices.
• Site Visit: Conduct a limited, targeted inspection of critical features (e.g., dam, spillway, and
appurtenant works) to validate desktop findings and supplement record data.
• Technical Evaluation: Perform technical evaluation of project elements based on available
information.
o Civil: evaluate system layout, dam footprint, conveyance infrastructure.
o Structural: review condition of dam and original design, spillway, and abutments and
general concrete condition.
o Mechanical: assess pumps, valves, outlet works.
o Electrical: review control and power systems.
o H&H: review inflow/outflow records, reservoir capacity, gage data.
o Water supply: evaluation of existing and future water supply.
• Regulatory Baseline: Review DSOD dam safety criteria, previous studies and agency records related
to environmental and historical resources, CEQA/NEPA triggers, Section 106 (SHPO), Clean Water
Act, and ESA compliance pathways.
• Gap Identification: Document deficiencies in geotechnical/seismic inputs, outlet/spillway structural
information, pipeline/tunnel condition, mechanical & electrical system performance, and
environmental/cultural baseline data.
• Workplan Development: Prepare technical workplans to close gaps, specifying scope of
investigations, permitting needs, access coordination, and sequencing.
• Geologic Assessment: As part of the field assessment of the site Tetra Tech will perform a geologic
reconnaissance. This work will include geologic mapping of surface geology including joint patterns,
bedding structure and evidence of shears or faulting. The information will be used to verify and
supplement existing data.
• Geotechnical and Seismology Review: Tetra Tech’s geotechnical and engineering geology personnel
will review all available information including subsurface investigations, geotechnical analyses, and
seismologic characterization of the site. This will include reviews performed by DSOD of previous
studies. Tetra Tech will review as-built plans, previous inspection reports and any geological field
mapping performed for the dam to obtain a thorough understanding of the geology, seismic
response, and expected performance of the site. With this information the Tetra Tech Team will
develop the geotechnical components to all conceptual project alternatives.
Task 3 Deliverables:
1) Conditions Assessment Memo
2) Data gap analysis and Technical Workplan for filling data gaps
3) Policy memo re: existing and future water supply, regulatory requirements, as appropriate.
Task 3 Assumptions:
1) One consolidated 4-hour site visit with all disciplines attending.
2) No formal investigations or inspections will occur with this site visit. The site visit will be used to
confirm documented information from desktop review. Site visit will be limited to observations of
surface features only.
3) County will provide all available records and projections regarding water supply and water demand.
4) No biological or aquatic resource studies will be conducted.
Task 4: Conceptual Alternatives Analysis
• Define Needs to Be Met and Infrastructure Modifications: Identify District’s needs and
objectives and required Civil, Structural, H&H, Mechanical, and Electrical changes for each
concept, including dam and outlet/spillway retrofits, pumping/electrical controls, and potential Page 146 of 525
storage increases.
• Regulatory & Permitting Review: Map the approvals required for each concept (including
DSOD, CEQA/NEPA, Clean Water Act, Endangered Species Act, Section 106 consultation with
SHPO and other state and federal environmental and historical resource permits/approvals
applicable to the project). In addition, a preliminary assessment of listed or at-risk species that
might be affected by operations/enlargement of the Dam will need to be completed to
determine how the District would comply with state and federal species-protection statutes. For
any federally listed species, it may be prudent to evaluate the potential of obtaining incidental
take authorization through section 7 of the Endangered Species Act, rather than section 10, and
the potential of obtaining a consistency determination, rather than an incidental take permit,
under the California Endangered Species Act for species listed under the state act.
• Institutional and Operational Considerations: Document implications of ownership transfer,
O&M responsibilities, and water-rights changes. Define roles and responsibilities of operators,
regulators, internal stakeholders, and external beneficiaries. To properly consider viable
governance alternatives, the analysis will need to consider, or anticipate, the preference of the
District, limitations that might be imposed through the District’s governing act, as well as the
ability to manage the implementation of a specifically proposed governance structure.
• Financial & Economic Analysis: Develop rough order-of-magnitude (ROM) capital and O&M
costs for each concept, paired with potential funding sources. Estimate ROM economic benefits
for each alternative as it relates to water supply, recreation, and other readily monetizable
benefits of the facility. Prepare conceptual benefit-cost ratios and/or overall net benefits of the
alternatives for comparison purposes.
• Water Supply and Policy Issues: Evaluate water supply benefits, reliability under
drought/climate scenarios, and related policy considerations. Identify potential beneficiaries,
water rights implications, and operational scenarios for each concept. Performing an initial
integrated water resources analysis would assist the with determining how additional water
supplies could be managed. As a part of that analysis, each conceptual alternative would be
considered. It could also lead to additional analyses to investigate other storage and use options
that could be more effective in meeting the District’s water demand needs.
• Stakeholder Interests and Liabilities: Identify stakeholder groups (e.g., finance, environmental,
real property, parks, riparian landowners, North County agencies, environmental groups,
regulators) and assess potential impacts, liabilities, and partnership structures for each
alternative.
• Risk/Opportunity Assessment: Identify key risks (e.g., seismic retrofit magnitude, regulatory
delays, stakeholder opposition) and opportunities (e.g., expanded storage, improved reliability,
multi-benefit recreation/environmental enhancements).
Task 4 Deliverables:
1) One-page concept, decision-grade summary sheet for each of the five (5) alternatives
2) Alternatives comparison matrix highlighting costs, risks, and regulatory pathways
3) Ownership Transfer Memo/Recommendations
4) Water Supply/Water Rights Impacts Memo
5) O&M Strategies Memo/Recommendations
Task 4 Assumptions:
1) Alternatives will be conceptual (<10% design), with one sketch/section per alternative. Each
alternative summary sheet will be one page.
2) All cost estimating will be Rough-Order-of-Magnitude.
3) Environmental permitting review is limited to pathway identification and does not include
CEQA/NEPA analysis.
4) Tetra Tech's permitting evaluation will rely on project information available at the conceptual Page 147 of 525
alternative stage. If the project description changes substantively, the evaluation may require
additional budget for revision.
Task 5: Vetting, Ranking, and Recommendation
• Based on District’s priorities, develop a weighted evaluation matrix incorporating technical,
regulatory, financial, and stakeholder dimensions.
• Incorporate the weighted evaluation matrix into a multi-criteria decision-making analysis to
compare alternatives and briefly analyze sensitivities from changes to the weights developed. After
weights are set, run a cost effectiveness analysis on alternatives to provide additional economic
insight into the comparison and selection process.
• Conduct workshops with District, City, USACE, DSOD, SHPO, and stakeholders to vet alternatives.
• Prepare a Recommendation Memo summarizing preferred alternatives and prerequisites (e.g.,
USACE transfer terms, DSOD approvals).
Task 5 Deliverables:
1) Draft and Final Feasibility Recommendation Memo
Task 5 Assumptions:
1) One virtual workshop will be held
Task 6: Feasibility Study
• Refine the selected alternative into a 10% design package (plan view, section, cost estimate).
• Prepare an updated life-cycle cost analysis for the preferred alternative.
• Prepare and refine Feasibility Report consolidating findings from Tasks 1–5 and documenting
alternatives, evaluations, and recommended alternative.
• Incorporate agency and stakeholder
• Incorporate up to 2 rounds of District/agency comments into the Final Feasibility Report.
Task 6 Deliverables:
1) Draft and Final Feasibility Report with 10% Design Package
Task 6 Assumptions:
1) The feasibility study, which will position the District to decide whether to pursue ownership transfer,
under what conditions, and with what commitments, will only evaluate one alternative as the
selected alternative for further refinement.
2) The feasibility study will not require any field investigations, modeling, or other detailed engineering
of project features. Some concept-level assessment or calculation may be included.
3) Quantities and costs developed in this task will be refined but will still be concept level.
4) Feasibility Report will incorporate up to two (2) rounds of District/agency comments.
Task 7: Detailed Planning for Project Development Phases
• Prepare draft scope, schedule, and budget for implementation of the selected alternative.
• Develop a regulatory roadmap covering DSOD submissions, CEQA/NEPA milestones, ESA and CWA
permitting and coordination, and Section 106 consultation with SHPO.
• Prepare a Project Development Planning Memo with decision gates, funding strategies, and phasing
recommendations.
Task 7 Deliverables:
1) Draft Scope, Schedule, and Budget for Implementation
2) Regulatory Roadmap, Project Development Planning Memo Page 148 of 525
Task 7 Assumptions:
1) Regulatory roadmap limited to sequencing/milestone planning, not permit applications or
CEQA/NEPA development.
Task 8 - 10: Optional Tasks
• Subject to future negotiation
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Page 150 of 525
Item 6j
Department: Public Works
Cost Center: 5201
For Agenda of: 1/13/2026
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Public Works & Utilities Director
Prepared By: Alex Fuchs, Mobility Services Business Manager
SUBJECT: APPROVE A MEMORANDUM OF UNDERSTANDING WITH SLOCOG
AND WITH THE CITY OF SANTA MARIA FOR PILOT EXPRESS TRANSIT
SERVICES
RECOMMENDATION
Authorize the Mayor to execute a Memorandum of Understanding (Attachment A) with
the San Luis Obispo Council of Governm ents and with the City of Santa Maria for Pilot
Express Transit Services.
REPORT-IN-BRIEF
In April 2024, the Santa Maria City Council approved elimination of funding to San Luis
Obispo Regional Transit Authority (RTA) for their Route 10 service and approved Santa
Maria Regional Transit (SMRT) to operate its own inter-regional commuter service,
referred to in this report as ‘pilot express transit service’. In June 2025, the San Luis
Obispo Council of Governments (SLOCOG) resumed discussions for the development
and execution of a Memorandum of Understanding (MOU) between SLOCOG, the City,
and Santa Maria for SMRT’s two-year pilot express transit service. The MOU establishes
terms for service coordination, data and fare sharing, and use of facilities needed to
operate the pilot express transit service. SMRT began operating the pilot express service
on September 15, 2025, with close coordination and monitoring by the City. After
conversations regarding logistical questions and a review by each agency’s legal counsel,
a final draft MOU (Attachment A) with mutually agreed upon terms is ready for Council’s
consideration.
POLICY CONTEXT
Task 5 of the Infrastructure and Sustainable Transportation Major City Goal of the 2025-
27 Financial Plan states that the City is to, “Support policies and programs aimed at
expanding mass transportation and public transit.” (page 46).
Policy 3.1.1 – Transit Development – of the Circulation Element of the City’s General
Plan, and incorporated by reference in the 2025 Short-Range Transit Plan, states that,
“The City shall encourage transit accessibility, development, expansion, coordination,
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Item 6j
and marketing throughout San Luis Obispo County to serve a broad range of local and
regional transportation needs.” (page 14).
Goal 2 of the San Luis Obispo Council of Government’s (SLOCOG) 2023 Regional
Transportation Plan is to improve intermodal mobility and accessibility for all people.
Specifically, Policy Objective 2.5 which states, “Support cooperative planning activities
leading to an integrated intermodal transportation system” (page 57). The 2023 Regional
Transportation Plan also includes Strategy 8.2, which states, “Actively encourage modal
shifts to reduce single occupant vehicles (SOVs) by expanding transportation options,
including but not limited to, improvements for intercity rail, public transit, bicycling, P ark &
Ride lots, carpools, and vanpools.” (page 62).
DISCUSSION
Background
The City of Santa Maria (Santa Maria) has historically contributed funding from their
Urbanized Area federal formula funds to support San Luis Obispo Regional Transit
Authority’s (RTA) Route 10 service. RTA’s Route 10 provides service from San Luis
Obispo to Santa Maria with stops in Pismo Beach, Arroyo Grande, and Nipomo. In 2021,
Santa Maria and RTA’s respective boards agreed that an independent study was needed
to guide future funding decisions following a one-time Coronavirus Aid, Relief, and
Economic Security Act (CARES) contribution and a negotiated Fiscal Year (FY) 2023-24
allocation of approximately $255,100.
A third-party consultant study found that Santa Maria could provide comparable service
at a lower cost, prompting Santa Maria to propose a more cost -effective model where it
would expand its own service into San Luis Obispo County instead of subsidizing RTA ’s
service. On April 16, 2024, the Santa Maria City Council approved elimination of RTA’s
Route 10 funding and approved Santa Maria Regional Transit (SMRT) to operate its own
pilot express transit service. The intent of the pilot express transit service is to determine
if there is a sustained need for direct service for daily commuters between Santa Maria
and downtown San Luis Obispo beyond what is currently provided by RTA’s Route 10
service. Attachment B is the related Santa Maria staff report which includes a copy of the
third-party consultant study.
Around the same time as the Santa Maria City Council decision, representatives from
RTA, Santa Maria, SLOCOG, and the City of San Luis Obispo (City) met to discuss the
need to create a Memorandum of Understanding (MOU). The purpose of the MOU is to
coordinate services, data sharing, fare sharing, and use of facilities for SMRT to operate
a pilot express transit service. Since Santa Maria does not own or have access to any
bus stops or transit facilities in San Luis Obispo, they requested that the City allow SMRT
to use the Downtown Transit Center, located on the 800 block of Osos Street, for
passenger boarding and de-boarding.
In July 2024, discussions were put on hold as SMRT focused on its upcoming FTA
triennial review as well as consolidation of services with the City of Guadalupe.
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Item 6j
Memorandum of Understanding
In June 2025, SLOCOG reached out to City staff about resuming discussions of an MOU
between SLOCOG, the City, and Santa Maria for SMRT’s two-year pilot express transit
service. SLOCOG provided a draft MOU for the City and Santa Maria staff to review and
provide comment. On August 6, 2025, SLOCOG’s board approved execution of the MOU
once terms are finalized and accepted by all parties (Attachment C).
SMRT began operating the pilot express service, designated as Route SLO 210, on
September 15, 2025. The City approved initiation of the service with close coordination
and monitoring to address any potential disruptions. Since service began, the only issue
observed has been brief morning periods when all five bus bays are occupied. During
these times, the SMRT bus either circulates the block or waits on Palm Street east of
Osos Street until a bay becomes available. To date, this has not affected service delivery
for either system.
On September 16, 2025, Santa Maria City Council approved execution of the MOU before
it was approved as to legal form or presented for consideration by the San Luis Obispo
City Council. After conversations regarding remaining logistical questions that are now
addressed in the agreement and a review by each agency’s legal counsel, a final draft
MOU with mutually agreed upon terms is now ready for Council’s consideration. Santa
Maria staff is returning to their City Council on January 20, 2026, with a recommendation
to approve execution of the revised MOU. Table 1 is a summary of the key MOU terms.
The pilot service provides direct express trips that are not currently available on RTA’s
Route 10. Although Route 10 operates in the sam e regional corridor, with multiple stops
in Santa Maria, Nipomo, Arroyo Grande, Pismo Beach, and San Luis Obispo. As a result,
the pilot service is expected to attract a different group of riders. Route 10 offers only one
northbound express trip in the morning and one southbound express trip in the evening,
with departure times that differ from SMRT’s pilot express trips. In addition, the two
services are operated and branded separately.
Table 1 - Key MOU Terms for the Pilot Express Transit Service
Service Start Date September 15, 2025
Route Designation SLO 210 (identified in the Recital section)
Service Period Two years, beginning on the service start date, unless terminated
by either party or extended by mutual agreement
Changes to Service
Levels
Proposed changes to the pilot express service require ninety (90)
days’ written notice from either party and are subject to the
approval of all parties
Regional Pass Fare
Sharing
Santa Maria agrees to participate in the San Luis Obispo County
Regional Pass Program, which means the Regional Day or Month
Pass will be an accepted form of payment on the route
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Item 6j
Joint Use of Facilities
The City allows Santa Maria use of the Downtown Transit Center
based on the service schedule included in the MOU for passenger
boarding and de-boarding. SLO Transit vehicles have priority over
Santa Maria’s use of the facility.
RTA’s participation in the MOU is not required as Santa Maria’s pilot express service will
not use any RTA owned bus facilities. The MOU does require Santa Maria’s participation
in SLOCOG’s Regional Pass Program, which covers fare sharing between all agencies
in the region for passengers using either the Regional 1 -Day or Regional Monthly Pass
on the pilot express service.
SLOCOG is a participating agency in this MOU because SLOCOG is the regional
transportation planning agency (RTPA) and the federally designated metropolitan
planning organization (MPO). In that role, SLOCOG coordinates public transit services
across the region including planning and policy setting, regional coordination, and
performance monitoring. SLOCOG plays the oversight and evaluation role, making sure
pilots align with regional transportation goals.
The MOU includes a data-sharing provision, including boardings and de-boardings by
stop and passenger load information, for the purpose of helping to assess the demand
for the pilot express service and its impacts on SLO Transit’s facilities and services. At
this time, staff does not have an expectation that the new service will significantly increase
ridership on SLO Transit’s routes. Santa Maria staff indicate that the pilot service primarily
targets downtown employees and secondarily Cal Poly staff, faculty, and students. Cal
Poly-affiliated riders would have to transfer to either SLO Transit’s Route 3 or 4 to
complete their trips.
Preliminary data from SMRT show 57 passenger trips in September 2025 and 177 in
October 2025. SMRT continues to market the service to downtown employees and
anticipate that ridership will grow over the coming months. To date, the express service
has not been associated with an increase ridership on SLO Tranist routes, suggesting
that few, if any, riders are transferring to local services during these initial months of
operation.
Previous Council or Advisory Body Action
1. September 10, 2025 – The Mass Transportation Committee, at a regularly
schedule meeting, voted in-favor of recommending that the City Council authorize
the Mayor to execute the MOU.
2. June 17, 2025 – Council adopted the 2025-27 Financial Plan including the
Infrastructure and Sustainable Transportation Major City Goal.
Public Engagement
At the public meeting in December 2024, City of Santa Maria staff held an Unmet Transit
Needs meeting to present potential route modification options to public, including a SMRT
service from Santa Maria/Orcutt to SLO/Cal Poly. Public comment on this item can be
provided to the City Council meeting through written correspondence prior to the meeting
Page 154 of 525
Item 6j
and through public testimony at the meeting.
CONCURRENCE
On August 6, 2025, SLOCOG’s Board approved execution of an MOU with the City of
San Luis Obispo and with the City of Santa Maria for a new express fixed -route pilot
service from Santa Maria to downtown San Luis Obispo. City of Santa Maria legal counsel
reviewed the draft MOU and approved the form of the agreement. The City Attorney’s
Office has reviewed and revised the draft MOU and approves the form of the agreement.
On September 10, 2025, the Mass Transportation Committee (MTC) considered a
recommendation by staff to support the execution of the MOU. The MTC voted 5 to 0 in-
favor of recommending that the City Council authorize the Mayor to execute the MOU.
On September 16, 2025, Santa Maria City Council approved execution of the MOU;
however, several revisions have been made to the MOU since then, so Santa Maria staff
is returning to their City Council on January 20, 2026, with a recommendation to approve
execution of the revised MOU (Attachment A).
The City’s transit operation and maintenance contractor, Transdev, reviewed the
proposed route and schedule, including use of the Downtown Transit Center. Since the
pilot express service began, Transdev has coordinated daily use of the Downtown Transit
Center and monitors and reports any issues to staff. Additionally, the City’s agreement
with Transdev does not change and does not need to be amended based on the pilot
express service.
Prospective bidders for the transit operation and maintenance services Request for
Proposals can identify any concerns and/or service implications in their respective
proposals.
ENVIRONMENTAL REVIEW
Operation of the new pilot express service is statutorily exempt under California Public
Resources Code Section 21080.25(b)(5), which exempts public projects for the institution
or increase of bus service which will be exclusively provided by zero-emission vehicles
on existing public right-of-way. Santa Maria has confirmed that the pilot express service
will use zero-emission electric buses and, therefore, meets the requirements of the above
statutory exemption section.
FISCAL IMPACT
Budgeted: N/A Budget Year: 2025-26
Funding Identified: N/A
Fiscal Analysis:
Page 155 of 525
Item 6j
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ 0 $ 0 $ 0 $ 0
Transit Fund $ 0 $ 0 $ 0 $ 0
State
Federal
Total $ 0 $ 0 $ 0 $ 0
There will be no fiscal impact to the City’s Transit Fund or the General Fund resulting
from the recommended action in this report. Under the proposed MOU language, Santa
Maria will retain all fares and other revenues collected for operation of the pilot express
service. Additionally, the MOU states that any additional maintenance required to the City
of San Luis Obispo stops by increased traffic from this pilot program will be Santa Maria’s
responsibility.
If through the operation of the new pilot service, SLO Transit’s current or future planned
service schedules are adversely impacted or an increase in maintenance needs is
identified, then notice will be provided to the other parties that an amendment is required,
per the agreement terms.
If, during the operation of or at the end of the two -year pilot service, Santa Maria notifies
the other parties of their intent to make the service permanent, then a new MOU will need
to be drafted and approved by each agency’s respective governing board prior to the
service being made permanent.
ALTERNATIVES
1. Council could decide not to approve execution of the MOU with SLOCOG
and the City of Santa Maria. Should Council pursue this option, inter-regional
public transit will continue to rely on the San Luis Obispo Regional Transit
Authority’s Route 10 service and limit opportunities to expand commuter-focused
transportation options.
2. Council could decide to not approve the execution of the MOU and direct
staff to negotiate terms of the agreement based on Council’s comments o n
this item. Should Council pursue this option, execution of the MOU may need to
return to each agency’s respective board for approval depending on the extent of
the negotiated revisions.
ATTACHMENTS
A - Final Draft MOU for Pilot Express Transit Service
B - April 16, 2024, City of Santa Maria Staff Report
C - August 6, 2025, SLOCOG Staff Report
Page 156 of 525
MEMORANDUM OF UNDERSTANDING (MOU) FOR PILOT SANTA MARIA TO SAN
LUIS OBISPO EXPRESS TRANSIT SERVICES
Between
SAN LUIS OBISPO COUNCIL OF GOVERNMENTS
1114 MARSH STREET
SAN LUIS OBISPO, CA 93401
And
CITY OF SAN LUIS OBISPO
990 PALM STREET
SAN LUIS OBISPO, CA 93401
And
SANTA MARIA REGIONAL TRANSIT
1303 FAIRWAY DRIVE
SANTA MARIA, CA 93455
THIS AGREEMENT is entered into this day of , by the San
Luis Obispo Council of Governments, the Metropolitan Planning Organization (MPO) for
the San Luis Obispo region pursuant to 23 USC M,L Section 134 of Title, (herein
referred to as “SLOCOG”) and between the CITY OF SAN LUIS OBISPO, (herein
referred to as “SAN LUIS OBISPO”) and the SANTA MARIA REGIONAL TRANSIT,
(hereinafter referred to as “SANTA MARIA”), collectively referred to as “the parties”.
THIS AGREEMENT is made between SLOCOG, SAN LUIS OBISPO and SANTA
MARIA for the dissemination of information and the coordination of a pilot express
service and service planning efforts, fare structures, use of bus stops, and facilitation of
transfers.
RECITALS:
WHEREAS, SAN LUIS OBISPO and SANTA MARIA provide general public
transit in the counties of San Luis Obispo and Santa Barbara; and,
WHEREAS, Santa Maria will begin to operate a pilot express transit route (SLO
210) beginning September 15, 2025, that will utilize SAN LUIS OBISPO right-of-way at
(the Downtown Transit Center located on the 800 block of Osos Street); and,
Page 157 of 525
WHEREAS, to efficiently serve the travel demands of each county, each agency
agrees to coordinate and cooperate in route planning, scheduling, and disseminating
information; and
WHEREAS, SAN LUIS OBISPO and SANTA MARIA desire to enter into this
memorandum of understanding for the provision of the pilot express fixed route service
between San Luis Obispo and Santa Maria; and
WHEREAS, SLOCOG provides regional transportation planning and oversees
Federal and State transportation funding within San Luis Obispo County and has
agreed to facilitate communication and performance of this agreement between SAN
LUIS OBISPO and SANTA MARIA.
NOW THEREFORE, “the parties” mutually agree as follows:
1. TERM OF AGREEMENT.
A. The term of this AGREEMENT shall be effective September 15, 2025,
and will remain in effect for two (2) years or until terminated with or
without cause or extended by either party by giving 90 days' written
notice to the other party. Any party may terminate this AGREEMENT
immediate “for cause” provided the terminating party notifies the other
party of the basis for termination and provides the other party with ten
(10) calendar days to cure.
2. HOLD HARMLESS AGREEMENTS.
A. In the performance of this AGREEMENT, SAN LUIS OBISPO shall
jointly and severally indemnify, defend, and hold harmless SANTA
MARIA, its officers, agents and employees against any and all suits,
claims, demands, liabilities, losses, and damages, including
reasonable attorneys’ fees and costs, arising from or connected with
injury to persons or property, or any alleged injury, occurring during the
performance of this AGREEMENT and resulting from the negligent or
intentional acts or omissions of SAN LUIS OBISPO or its officers,
employees or agents (Collectively “Claims”). SAN LUIS OBISPO shall,
at its own expense, pay all legal costs, attorneys’ fees, and expenses
arising from or related to such Claims, and shall satisfy and discharge
any judgment rendered against SANTA MARIA or any of its officers,
agents or employees arising from or related to such Claims.
B. In the performance of this AGREEMENT, SANTA MARIA shall jointly
and severally indemnify, defend, and hold harmless SAN LUIS
OBISPO, its officers, agents and employees against any and all suits,
Page 158 of 525
claims, demands, liabilities, losses, and damages, including
reasonable attorneys’ fees and costs, arising from or connected with
injury to persons or property, or any alleged injury, occurring during the
performance of this AGREEMENT and resulting from the negligent or
intentional acts or omissions of SANTA MARIA or its officers,
employees or agents (Collectively “Claims”). SANTA MARIA shall, at
its own expense, pay all legal costs, attorneys’ fees, and expenses
arising from or related to such Claims, and shall satisfy and discharge
any judgment rendered against SAN LUIS OBISPO, or any of its
officers, agents or employees arising from or related to such Claims.
C. In performance of this Agreement, SANTA MARIA and SAN LUIS
OBISPO shall jointly and severally indemnify, defend, and hold
harmless SLOCOG, its officers, agents, and employees from and
against any and all suits, claims, demands, liabilities, losses, and
damages, including reasonable attorneys' fees and costs, arising from
or connected with injury to persons or property, or any alleged injury,
occurring during the performance of this AGREEMENT, and resulting
from the negligent or intentional acts or omissions of SANTA MARIA,
SAN LUIS OBISPO, or their respective officers, employees, or agents
(Collectively “Claims”). Both SANTA MARIA and SAN LUIS OBISPO
shall, at their own expense, pay all legal costs, attorneys' fees, and
expenses arising from or related to such Claims, and shall satisfy and
discharge any judgment rendered against SLOCOG or its officers,
agents, or employees arising from or related to such Claims.
3. SEVERABILITY
A. Should it be determined by a court of competent jurisdiction that any
term, section, or provision of this agreement is void, invalid or
unenforceable, the other provisions of this agreement shall remain in
full force and effect.
4. GOVERNING LAW
A. This agreement shall be governed by, construed, and enforced in
accordance with the laws of the State of California.
5. SERVICE COORDINATION/DATA EXCHANGE
A. Each party shall inform the other of future plans for pilot and/or
permanent new routes, schedules, and fares, exclusive of
emergencies, within San Luis Obispo County. Any plans by SANTA
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MARIA for implementing new or pilot routes, not previously identified in
Exhibit 1, must be pre-approved by SAN LUIS OBISPO and SLOCOG
prior to implementation. SAN LUIS OBISPO and SLOCOG reserve the
right to conduct an analysis of any proposed changes or addition of
new routes, schedules and fares. If analysis determines that the
contemplated change could adversely impact the SAN LUIS OBISPO’s
or other transit services in San Luis Obispo County, SAN LUIS
OBISPO and SLOCOG, individually, reserve the right to deny such
change.
B. SANTA MARIA shall provide, on request by SAN LUIS OBISPO or
SLOCOG, data that is readily available including boardings and
alightings by stop and passenger load information for all inter-county
services operated in between SANTA MARIA AND SAN LUIS OBISPO
during the term of this AGREEMENT. Should a data request require
extensive efforts, SANTA MARIA shall advise the requesting party of
the expected costs; and, if the requesting party still desires the data, it
shall so advise Santa Maria which shall provide the data and which
may charge a fee to recover its actual costs.
6. SERVICE TO BE OPERATED.
A. SANTA MARIA’s proposed pilot service may not deviate from the
agreed upon service route, fare levels, service times, service days, and
designated bus stop(s) (as shown in EXHIBIT 1) without prior consent
from SAN LUIS OBISPO and SLOCOG. Minor modifications to the
service route, fare levels, service times, service days, and/or stop
placement can be made without an amendment to this AGREEMENT if
approved in writing by the authorized representatives of SAN LUIS
OBISPO and SANTA MARIA.
7. CHANGES IN SERVICE LEVELS
A. Proposed changes to services (as shown in Exhibit 1) require ninety
(90) days’ written notice from SAN LUIS OBISPO or SANTA MARIA
and are subject to the mutual written approval of all parties.
B. Major Service Changes, such as, establishing a new or eliminating a
fixed route, realignment of more than 25% of the length of the route,
adding or eliminating more than one (1) bus stops, moving a stop
more than one quarter of a mile, or changing service span (as shown
in Exhibit 1) that impacts the agencies existing transit service shall
require an amendment to this AGREEMENT.
8. PUBLIC INFORMATION
A. Each party shall cooperate, to the extent feasible, in providing the
general public with specific transit information and in advertising of
operations of SAN LUIS OBISPO and SANTA MARIA’S services, in
Page 160 of 525
promoting the general use of public transit, and in providing
participation and support in required public hearings.
9. REGIONAL PASS/FARES
A. SANTA MARIA agrees to participate in the San Luis Obispo County
Regional Pass Program, which means that on the pilot express route
operated between Santa Maria and San Luis Obispo, the Regional Day
or Month Pass will be an accepted form of payment on the route.
SANTA MARIA will be paid the fare revenue for the San Luis Obispo
County Regional Pass for riders of the pilot express route.
B. SANTA MARIA will conduct quarterly surveys or use other means
agreed to by the parties to determine the ridership levels of customers
using San Luis Obispo County regional passes on SANTA MARIA’s
transit system. SANTA MARIA shall provide the quarterly survey
results to SAN LUIS OBISPO and SLOCOG
C. SANTA MARIA shall retain all fares or other revenues collected on its
pilot route with respect to that service for payments not made with the
San Luis Obispo Regional Pass.
D. SANTA MARIA will provide access to the pilot express bus service,
without charge, to SAN LUIS OBISPO staff for the purposes of
checking/monitoring the bus service performance.
10. BUS STOPS/FACILITY SHARING
A. SAN LUIS OBISPO is responsible for the installation, maintenance,
and expenses for bus stop infrastructure located at the SLO
Downtown Transit Center. However, SANTA MARIA will be
responsible for the cost of any increased maintenance to such bus
stop facilities reasonably resulting from the pilot express program.
B. Pilot express routes may utilize existing bus stop infrastructure for
signage, provided such signage complies with all applicable SAN LUIS
OBISPO Standard Specifications and Engineering Standards.
C. All signage for jointly used bus stops shall be subject to prior approval
by SAN LUIS OBISPO before installation.
D. Each Party shall be solely responsible for any claims or damages
arising from the installation of its own bus stop signs, posts, or poles.
E. SAN LUIS OBISPO shall provide access to restroom facilities for
SANTA MARIA bus drivers at the City Hall Building facility located at
990 Palm Street.
F. All parties agree that SAN LUIS OBISPO vehicles have priority over
pilot express transit service parking at the Downtown Transit Center
and in no event shall pilot express transit vehicles block, delay, or
idle in the street or otherwise contribute to congestion while waiting
for access to the Downtown Transit Center.
11. EXHIBITS
A. All exhibits referenced in this AGREEMENT are hereby incorporated
into the AGREEMENT as if set forth in full herein. In the event of any
material discrepancy between the terms of any exhibit so incorporated
and the terms of this AGREEMENT, the terms of this AGREEMENT
shall control. Page 161 of 525
12. NOTICES.
A. Any notice required to be given pursuant to the terms and provisions
hereof shall be in writing, and shall be sent by certified or registered
mail to:
SAN LUIS OBISPO:
Public Works and Utilities Director
City of San Luis Obispo
919 Palm Street,
San Luis Obispo, CA 93401
AND
City Clerk
City of San Luis Obispo
990 Palm Street,
San Luis Obispo, CA 93401
SANTA MARIA:
Transit Manager
City of Santa Maria
110 E Cook Street
Santa Maria, CA 93454
AND
SAN LUIS OBISPO COUNCIL OF GOVERNMENTS
Executive Director
City of San Luis Obispo
1114 Marsh Street
San Luis Obispo, CA 93401
13. ENTIRE AGREEMENT.
A. The terms and conditions set forth in this AGREEMENT, including
exhibits referenced, constitute the complete and exclusive statement of
the agreement between all of the parties with respect to the subject
matter hereof, and there are no other representations, promises,
warranties, covenants or undertakings with respect thereto and this
agreement may not be contradicted by prior or contemporaneous
agreements.
Page 162 of 525
IN WITNESS WHEREOF, this AGREEMENT has been executed by the parties
hereto, upon the date first above written.
CITY OF SANTA MARIA CITY OF SAN LUIS OBISPO &
SLOCOG
ATTEST:
ATTEST:
Mayor
City of Santa Maria
Erica A. Stewart, Mayor
City of San Luis Obispo
Name
City Clerk
Teresa Purrington
City Clerk
APPROVED AS TO FORM AND
LEGAL EFFECT:
APPROVED AS TO FORM AND
LEGAL EFFECT:
Name
City Counsel
By:
City Attorney
Date:
By:
SLOCOG Legal Counsel
Date:
Name
City Counsel
By:
City Attorney
Date:
SLOCOG
Page 163 of 525
President
SLOCOG Board of Directors
Date:
Page 164 of 525
EXHIBIT 1
Page 165 of 525
Page 166 of 525
Figure 1: Service Schedule – Weekdays Only
Santa Maria
Crossroads Ctr
(Depart)
Downtown
SLO Transit
Center
Santa Maria
Crossroads Ctr
(Arrive)
6:20 AM 7:20 AM 8:20 AM
6:45 AM 7:45 AM 8:45 AM
8:20 AM 9:20 AM 10:20 AM
8:45 AM 9:45 AM 10:45 AM
No Midday Service, See SLO RTA for travel options
3:00 PM 4:00 PM 5:00 PM
4:10 PM 5:10 PM 6:10 PM
5:00 PM 6:00 PM 7:00 PM
Page 167 of 525
Page 168 of 525
FOR THE COUNCIL MEETING OF APRIL 16, 2024
COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager Alex Posada
BY: Director of Public Works Brett Fulgoni
SUBJECT: Federal Transit Administration 5307 Program of Projects for the
Federal Fiscal Year 2024-2027 Federal Transportation Improvement
Program
Description:
The City Council will consider adopting the proposed projects selected to receive
continual funding for the Federal Fiscal Year 2024-27, Federal Transit Administration's
5307 Call for Projects process, to support ongoing transit capital and operations costs
within the Santa Maria Urbanized Area.
Environmental Notice: The activity is not a "Project" as defined under Section 15378 of
the California Environmental Quality Act State Guidelines; therefore, pursuant to State
Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
Adopt a Resolution approving applications for Federal Transit Administration Section
5307 funds for Fiscal Year 2024-25, Fiscal Year 2025-2026, and Fiscal Year 2026-27 for
Santa Maria Urbanized Area.
BACKGROUND:
Each year the Federal Transit Administration (FTA) distributes Section 5307 operating
and capital assistance funds to Urbanized Areas (UZAs) to support their respective transit
programs. The FTA 5307 funds are apportioned to the small UZAs on the basis of
population and population density.
Santa Maria Regional Transit (SMRT), as the designated grantee of Section 5307 funds,
conducts the project selection process for the Santa Maria Urbanized Area. The City of
Santa Maria approves projects and then submits the projects to projects to Santa Barbara
County Association of Governments (SBCAG). SBCAG then includes the approved
projects into the Federal Transportation Improvement Program.
The primary transit operator for the Santa Maria UZA is the City's Santa Maria Regional
Transit, but there are other operators.
Page 169 of 525
SBCAG staff has estimated available FTA 5307 apportionments for Fiscal Year (FY)
24/25 to 26/27 for the 2024 cycle. The estimates are in the table below.
Urbanized Area FY 24/25 FY 25/26 FY 26/27 Totals
Lompoc 1,763,907 1,763,907 1,763,907 5,297,721
Santa Maria 4,248,541 4,248,541 4,248,541 12,745,623
Total 6,012,448 6,012,448 6,012,448 18,037,344
Note: Apportionments are based on Federal Fiscal Year 2023 Apportionments
Apportionments exclude Small Transit Intensive Cites funding estimates*
To select the projects that will receive funding, SBCAG is required by federal regulation
to adopt procedures that will be used for the selection of projects for FTA 5307 funding.
The procedures require each designated grantee of the UZA to screen, score, and
recommend to SBCAG which projects in their UZA should be funded for fiscal years 24/25
to 26/27.
After the initial screening and scoring by each designated grantee, the projects must be
submitted to the SBCAG Board for approval.
DISCUSSION:
While SMRT is the primary transit operator and designated FTA grantee for the Santa
Maria UZA, there are also three other transit operators, who provide some level of service
to the Santa Maria UZA: Guadalupe Flyer, SBCAG's Clean Air Express, and San Luis
Obispo County's San Luis Obispo Regional Transit Authority (SLORTA). The Call for
Projects process is open to considering funding these other transit operators as well.
Consideration of awarding Santa Maria UZA funds to these other operators is based on
the scoring criteria which includes whether it is considered an "effective and cost-efficient
use of public funds," amongst other criteria.
Two project applications were submitted in the Santa Maria UZA; one from SMRT and
another from SLORTA.
1. Federal Transit Operating Assistance for SMRT: Program a total of $4,461,000 in
FY's 24/25 to 26/27 in FTA Section 5307 urbanized area formula funds for transit
capital, operating, maintenance, and expansion assistance.
2. Operating Assistance for SLORTA Route 10: Program a total of $255,093 in FY
24/25 in FTA Section 5307 urbanized area formula funds for partial funding of
SLORTA Route 10 fixed -route services.
Change from Status Quo
Historically, Santa Maria, as the designated recipient, contributed Santa Maria UZA
allocated funding to support SLORTA's Route 10 service into Santa Maria from San Luis
Obispo (SLO) County. However, Santa Maria has long disputed the appropriate level of
2
Page 170 of 525
financial contribution to SLORTA and that this matter should be studied rather than
capitulating to the request.
After a very generous and negotiated contribution of Santa Maria UZA allocation of The
Coronavirus Aid, Relief, and Economic Security (CARES) Act (2020) funding in the
amount of $1.2 million and an additional one-time contribution of $255,093 in FY 23/24
5307 funds to SLORTA back in 2021, a May 17, 2021, letter from the Executive Director
of SLORTA (Attachment A) acknowledges that an "independent study...will inform future
negotiations on regional funding."
A codeveloped study, with SLORTA input (Attachment B), by HDR Consulting, found that
Santa Maria Regional Transit could offer comparable service far cheaper and in lieu of
financial support to SLORTA. Santa Maria Transit staff have reached out to SLORTA to
collaborate on an alternative "effective and cost-efficient use of public funds" transit model
where SMRT operates increased service into SLO County in lieu of a subsidy to SLORTA.
Which notably has not restored pre -pandemic service levels due to ongoing challenges
stemming from the pandemic, issues SMRT has long resolved. These negotiations have
only recently begun (March 2024), and the two organizations are still without the
necessary agreement.
On the basis of the criteria for "effective and cost-efficient use of public funds," the lack of
a mutually agreed upon agreement and the notably substantial amount of already
contributed funds, Santa Maria staff are not recommending the award of Santa Maria UZA
allocated 5307 funds be shared with SLORTA. Should an agreement be reached later,
an amendment to the Call for Projects will be brought forward for consideration.
Notably, there is no obligation to do so, and SLORTA has been aware of this possibility
since May 2021. It should also be noted that SLO County has its own independent
sources of SLO County related UZA's 5307 funding which would support SLORTA's
Route 10 operational costs, including the marginal amount it takes to cross the river into
Santa Maria, and which San Luis Obispo residents expect from SLORTA. Similarly,
SMRT has regularly offered, relying on its own allocation of SM UZA funds, to support
additional service into SLO County in lieu of the subsidy request from SLORTA. As
previously noted, these negotiations have only recently begun, and the two organizations
are still without the necessary agreement. Until such an agreement can be reached, at
which time an amendment to the Call for Projects will be brought forward for
consideration, it is the recommendation to not share SM UZA funds with SLO RTA on the
basis herein outlined. This would be consistent with any other time Santa Maria allocates
funding.
Alternative(s)
The City Council may alternatively decide to offer SLORTA some negotiated amount of
Santa Maria UZA funding. However, this alternative is not recommended as it continues
a precedent that supports a SLO County reliance on Santa Maria UZA funds to augment
their budget while not producing an equally beneficial service for both San Luis Obispo
and Santa Maria/Santa Barbara County residents.
3
Page 171 of 525
Fiscal Considerations
The FTA required 5307 selection process is necessary for UZAs to have, in order for their
projects to be recorded in the Federal Statewide Transportation Improvement Program
and then be able to expend federal funds on their transit programs. Not adopting a 5307
projects list for the Santa Maria UZA would prevent SMRT from using this primary source
of funding used to support Santa Maria's, Orcutt's, and Tanglewood's transit services.
Impact to the Community
An ever-increasing population of the Santa Maria UZA community members are relying
on the City's SMRT public transit system to address their mobility needs. As of recent,
ridership numbers have surpassed pre -pandemic levels. SMRT is continuing to invest in
its transit services for the Santa Maria UZA, and beyond, by making intentional,
deliberate, and cost-effective service improvements which focus on prioritizing Santa
Maria UZA and Northern Santa Barabara resident needs. The adoption of the
recommended FTA 5307 Call for Projects will ensure that SMRT can continue to deliver
these vital services, while still buying out the team for a mutually beneficial agreement to
be reached.
ATTACHMENTS
A. May 17, 2021, RTA Letter — Amended Application, Need for Study
B. HRD Route 10 Operational Analysis Technical MEMO
4
Page 172 of 525
Attachment A
rta
179 Cross Street, Suite A
San Luis Obispo, CA 93401
805) 781-4472 Fax (805) 781-1291
www.slorta.org
REGIONAL TRANSIT AUTHORITY
May 17, 2021 SENT VIA EMAIL
Kevin McCune
Santa Maria Public Works Director
Re: Amended FTA Section 5307 Application for Santa Maria UZA Funds
Dear Mr. McCune:
Per our recent discussions, the San Luis Obispo Regional Transit Authority (RTA) accepts the City of
Maria's recommended programming of $255,093 in Fiscal Year 2023-24 Federal Transit Administration
Section 5307 funds for partial funding of RTA Route 10 fixed -route services that operate in the Santa
Maria Urbanized Area. As agreed, we herein withdraw our request for FY21-22 and FY22-23 funding.
Please accept this letter as an amendment to tike RTA's application that we submitted to the City on
January 14, 2021.
We look forward to partnering with the City, the Santa Barbara County Association of Governments and
the San Luis Obispo Council of Governments to jointly fund and conduct an independent study that will
inform future negotiations on regional funding agreements for transit services that cross county lines.
Feel free to call or email me if you need additional information.
Sincerely,
RTA Executive Director
cc: Pete Rodgers, SLOCOG
Sarkes Khachek, SBCAG
The Regional Transit Authority is a Joint Powers Agency serving residents and visitors of:
Arroyo Grande Atascadero Grover Beach Morro Bay Paso Robles Pismo Beach San Luis Obispo and The County of San
Luis Obispo
Page 173 of 525
Attachment B
Route 10 Operational Analysis Findings
Santa Maria Regional Transit Zero Emission Bus Fleet Rollout Plan — Contract Amendment
Memorandum
Date: Wednesday, July 12, 2023
Project: Santa Maria Regional Transit Zero Emission Bus Fleet Rollout Plan — Contract
Amendment
To: Gamaliel Anguiano, City of Santa Maria
From: Marie Lewis Adams, HDR
Subject: Route 10 Operational Analysis Findings
The San Luis Obispo Regional Transit Authority (RTA) currently operates bus service between Santa
Maria and San Luis Obispo designated as Route 10. The City of Santa Maria historically contributes
a portion of its FTA 5307 funds to RTA, to support operation of the route, outside of a formal agreement
with RTA. The City of Santa Maria, in partnership with RTA, the Santa Barbara County Association of
Governments (SBCAG), and the San Luis Obispo Council of Governments (SLOCOG), wishes to
assess the potential benefits and costs of alternative operating arrangements for Route 10 to achieve
attractive, cost-effective service along this section of the US 101 corridor. This memo summarizes the
findings of the analysis conducted.
Travel Demand
1. 1 Overall Travel Patterns
Travel demand between Santa Maria and Nipomo, the Five Cities, and San Luis Obispo was analyzed
using Replica, a data platform that uses mobile location data to create a representative sample of daily
origin and destination patterns. Data from Replica captured travel demand for all modes of
transportation between January and June of 2022.
Shown in Figure 1, weekday trips originating in Santa Maria peak during commute times at 7:OOAM
and 3:OOPM, with the highest number of trips made from Santa Maria to the Five Cities. Travel between
the Five Cities and Santa Maria is bidirectional during the peak periods. In contrast, trips from Santa
Maria to San Luis Obispo peak in the morning, with a corresponding afternoon return peak, whereas
trips to Nipomo show the opposite pattern. Weekday trips ending in Santa Maria (Figure 3) were the
highest from the Five Cities at 7:OOAM and 3:OOPM.
Travel demand on the weekends, shown in Figure 2 and Figure 4, presents a bell curve with the
highest number of trips at midday. Overall, weekend travel was highest between Santa Maria and the
Five Cities, followed by Nipomo and San Luis Obispo.
March 2024 1 1Page 174 of 525
Route 10 Operational Analysis Findings
Santa Maria Regional Transit Zero Emission Bus Fleet Rollout Plan
Figure 4. Weekday northbound trips from Santa Figure 3. Weekend northbound trips from Santa Maria,
Maria, all modes (January — June 2022)
10,000
8,000
6,000
U
cL 4,000
2,000
0 O0 O0 O0 O0 .O0 O0 O0 O0 O0 O0 O0
na. . AA. c5. . r. X17. A . ^p. r .
Time
t Nipomo --The Five Cities --0—San Luis Obispo
all modes (January — June 2022)
10,000
8,000
6,000
U
cL 4,000
2,000
0 O0 O0 O0 O0 .O0 O0 O0 O0 O0 O0 O0
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Time
t Nipomo —0—The Five Cities —0—San Luis Obispo
Figure 1. Weekday southbound trips to Santa Maria, Figure 2. Weekend southbound trips to Santa Maria,
all modes (January — June 2022)
10,000
8,000
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t Nipomo The Five Cities San Luis Obispo
all modes (January — June 2022)
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t—Nipomo The Five Cities San Luis Obispo
March 2024 1 2Page 175 of 525
Route 10 Operational Analysis Findings
Santa Maria Regional Transit Zero Emission Bus Fleet Rollout Plan
1.2 Route 10 Ridership Patterns
In fiscal year (FY) 2018/2019, prior to the Covid-19 pandemic, annual ridership on the route totaled
over 193,000. Ridership in FY 2021/2022 totaled over 112,000, representing a decrease of over 40
percent. Notably, monthly ridership showed an increasing trend during the early months of 2022. With
pandemic restrictions easing and workers returning to the office, local and national trends suggest that
ridership will likely continue to increase in the near future. It is unclear, however, if or when ridership
will return to pre -pandemic levels.
Route 10's regular (non -express) service pattern includes 22 stops in each direction. Three of those
stops (Government Center, Pismo Beach Premium Outlets, Santa Maria Transit Center) generate over
50 percent of total route boardings and alightings. When combined with the fourth highest -ridership
stop, Tefft & Carillo in Nipomo, those four stops together account for approximately two-thirds of total
activity along the route.
Route 10 ridership by time of day was compared with Replica data to assess differences in travel
patterns between those riding transit and overall, non -mode -specific travel. Total Route 10 boardings
between January and June 2022 are shown in the figures below. Boardings reflect commute -oriented
travel demands on the weekdays and midday -focused travel demands on the weekend. This
distribution closely reflects overall demand patterns, except for weekday northbound boardings, which
show relatively higher trips in the morning peak and fewer in the afternoon compared to overall travel
demand on the corridor, as shown in Figure 5. This more closely reflects the demand pattern for trips
to San Luis Obispo suggests that the route is particularly well -suited to long distance commuters to
downtown San Luis Obispo.
Northbound boardings are highest for the 7:14AM departure on weekdays and the 12:14PM departure
on weekends. Southbound boardings are highest for the 3:33PM departure on weekdays and the
1:33PM departure on weekends. Weekday boarding activity is stronger in the AM peak northbound
and the PM peak southbound, suggesting more passengers are heading northbound for work using
Route 10.
Before the pandemic, RTA operated express patterns that served Cal Poly San Luis Obispo and made
fewer intermediate stops. In 2019, the Cal Poly Library ranked 19th out of 30 stops by ridership, despite
only being served by two round trip express runs per day. On a per trip basis, it ranked 9th. This
suggests potential latent demand for additional trips to Cal Poly.
March 2024 1 3Page 176 of 525
Route 10 Operational Analysis Findings
Santa Maria Regional Transit Zero Emission Bus Fleet Rollout Plan — Contract Amendment
Figure 5. Weekday northbound travel demand compared Figure 6. Weekend northbound travel demand compared
to Route 10 boardings (January — June 2022) to Route 10 boardings (January — June 2022)
3000
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2500
2000
0 1500
0 1000
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O° O° O° O° .O° O° o° O° O° .O° O° O°
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Boardings •Travel Demand Boardings •Travel Demand
Overall
Demand
Figure 7. Weekday southbound travel demand compared Figure 8. Weekend southbound travel demand
to Route 10 boardings (January — June 2022) compared to Route 10 boardings (January — June 2022)
3000
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Boardings •Travel Demand Boardings •Travel Demand
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Demand
March 2024 1 4Page 177 of 525
Route 10 Operational Analysis Findings
Santa Maria Regional Transit Zero Emission Bus Fleet Rollout Plan
Comparison with Potential SMRT Operation
This section provides a theoretical comparison of differences if the city of Santa Maria, which manages
contract -operated Santa Maria Regional Transit (SMRT) service, were to operate the route with no
changes to its current service pattern. This comparison is provided for informational purposes only.
2.1 Operational Impacts of Zero -Emissions Technology
Route 10 currently operates at one -hour headways using three diesel internal combustion engine (ICE)
buses operating up to five round trips per day with 31 -minute layovers at the Santa Maria Transit
Center. SMRT is in the process of transitioning from diesel ICE buses to battery electric buses (BEBs)
to comply with the California Air Resources Board's (CARB) Innovative Clean Transit rule. RTA will
also transition to zero -emissions technology to comply with CARB regulations, but on a different
timeline than SMRT. Route 10 was analyzed to determine what changes to the operating pattern, if
any, would be needed to deliver the same service with BEBs. BEBs have shorter range capabilities
than ICEs, which is an issue when operating a longer -distance route. BEB ranges will likely continue
to increase in future as the technology progresses.
The estimated daily energy need per vehicle for five round trips on Route 10 is 836 kilowatt-hours
kWh), well above the end -of -life battery capacity of 281 kWh for SMRT's BEBs (end -of -life battery
storage reflects a conservative estimate of battery capacity). If a 300 -kW charger were available during
layovers at the Santa Maria Transit Center, charging for at least 28 minutes between trips could
provide enough energy for this route to operate. Therefore, it would be feasible to operate the service
with no increase in the number of buses required if the necessary charging infrastructure is available
at the Transit Center. Currently, SMRT is in the early stages of studying the possibility of installing
charging equipment at the Transit Center. While this analysis provides an estimate of the requirements
to operate BEBs on Route 10, ICE vehicles or a combination of BEB and ICE vehicles may be utilized
during the transition phase.
2.2 Deadhead Requirements
RTA currently operates Route 10 with buses stored overnight and services at its facility at 253 Elks
Lane in San Luis Obispo, just over 2 miles from Government Center, the northern terminus of Route
10. SMRT's bus facility is located at 1303 Fairway Drive in Santa Maria, approximately 4 miles from
the Santa Maria Transit Center, the southern terminus of Route 10. However, existing operational
patterns require RTA to deadhead multiple trips to and from Santa Maria. Under the current schedule,
two of three buses must first deadhead to the Santa Maria Transit Center in the morning to start their
runs, and all three must deadhead back to San Luis Obispo at the end of the day — over 30 miles each
way. Since two of the three buses both begin and end revenue service in Santa Maria, deadhead miles
could be substantially reduced if more vehicles started and ended their operation in Santa Maria.
2.3 Subsidy Comparison
Table 1 shows the estimated operating costs, fare revenue, and subsidy under existing RTA operation
and potential SMRT operation, using information provided by RTA and SMRT. Operating costs per
hour were derived from the 2021 National Transit Database. While average fares are slightly lower,
March 2024 1 5Page 178 of 525
Route 10 Operational Analysis Findings
Santa Maria Regional Transit Zero Emission Bus Fleet Rollout Plan
SMRT's lower hourly operating cost results in a reduction in total subsidy by over $710,000 and a
6.33 reduction in operating subsidy per passenger. This comparison does not consider any cost
implications of responsibility for associated paratransit service.
Table 1. Annual Subsidy Comparison by Operator
Annual revenue hours*9,907 0
Approximate annual ridership 113,000 0
Cost per hour 133.35 58.34 75.01
Total annual cost 1,320,000 580,000 740,000
Average Fare 1.79 1.52 0.27
Total Fare Revenue 202,000 171,000 31,000
Total Subsidy 1,120,000 410,000 710,000
Subsidy per passenger 9.94 3.61 6.33
Assumes operation of August 2022 schedule over 255 weekdays, 52 Saturdays and 56 Sundays or
holidays.
2.A Start -Up Costs for BEB Operation
Route 10 requires three buses in daily service, and one additional spare bus will be required to
maintain adequate spare ratio. To operate with only three buses using battery technology, installation
of a charger at the Santa Maria Transit Center would also be required. Table 2 shows the estimated
start-up costs associated with operation of Route 10 using BEBs, based on unit costs derived from the
Santa Maria ZEB Feasibility Study completed in 2022. The total estimated start-up cost for either
agency to operate Route 10 service with BEBs is approximately $4.6 million. Like the operating
comparison above, this estimate does not consider any start-up costs associated with the potential
need to operate paratransit service along the corridor.
Table 2. Estimated Start -Up Capital Costs
Item Unit Quantity Unit Cost Cost (2021$)
Battery Electric Buses
Charger
Charger installation
Supporting infrastructure
Total
Ea 4 940,000 1 $3,760,000
kW 300 1,190 $357,000
1,000 $300,000kW300
kW 300 $520 $156,000
4!573,000
An important note is that the above Estimated Start -Up Costs are based on the most extreme, and
least likely, hypothetical scenario of SMRT taking over the operations of Route 10. However, the
start-up costs would be lower if operation of the Route 10 where shared between the two agencies,
as illustrated by Shared Operation alternatives presented later in this report.
Route 10 Observations
Routing and Operations. The current Route 10 route structure combines elements of local and
express service. Notably, just four stops make up nearly two thirds of boardings. In addition, RTA
operates an overlay express service during peak hours that makes fewer intermediate stops. The
express service was suspended during the pandemic, and restoration was requested during the FY23
and FY24 SLOCOG unmet transit needs cycles. RTA has now restored one express round trip from
March 2024 1 6Page 179 of 525
Route 10 Operational Analysis Findings
Santa Maria Regional Transit Zero Emission Bus Fleet Rollout Plan
Santa Maria to Cal Poly. Scheduled travel times between Santa Maria and Government Center are
approximately 15 minutes shorter, representing a 20 percent travel time savings while still serving
nearly 70 percent of current riders (as of FY 2021/2022) with the six stops identified on the online
schedule. Anecdotal information from Santa Maria riders and transit service providers suggests there
is latent demand for more direct service between Santa Maria and San Luis Obispo.
Demand Patterns. As noted in Section 1.2, boarding patterns show substantial ridership in the
morning commute period northbound to San Luis Obispo, but the earliest arrival time in at Government
Center is currently 7:28 AM. Demand for earlier weekday service was also identified in rider surveys
for the 2017 Santa Maria -San Luis Obispo Transportation Connectivity Study. Providing earlier service
would likely capture commuters with earlier start times. This represents a potential partnership
opportunity with SMRT, since SMRT buses could begin service earlier without having to deadhead
from San Luis Obispo.
In contrast to demonstrated ridership demand for commute trips to San Luis Obispo, there is significant
travel demand between Santa Maria and the Five Cities and Nipomo that is not reflected to the same
degree in Route 10 ridership. Better understanding of demand patterns between the Five Cities Area
and Santa Maria could provide insight into potential opportunities for better first/last mile connectivity,
particularly to/from the Pismo Beach Premium Outlets location. Given the close proximity of Nipomo
to Santa Maria, express -type service may not provide convenient connections between these cities,
and there may be an opportunity for a more local -type service if an appropriate interagency agreement
could be developed.
Transfers. The Santa Maria Transit Center is the primary Route 10 boarding location in the City of
Santa Maria, and also serves as a transfer hub for SMRT routes. However, current schedules do not
allow convenient connections between Route 10 and SMRT routes. Route 10 buses are scheduled to
arrive and depart consistently at the same time each hour, whereas most SMRT routes operate on a
45 -minute headway, meaning that ideal connections are possible at most once every 3 hours. One
SMRT route (Route 2) operates on a primarily hourly schedule but arrives 10 minutes after Route 10
departs the transit center and departs 13 minutes before Route 10 arrives. Assuming no changes to
these basic schedules, differences in headways limit the ability to make consistent connections. There
may be opportunities to modify RTA or SMRT schedules to provide timed transfers to or from Route
10 at select points in the day. Surveys of Route 10 riders could help pinpoint the SMRT routes that
these riders most frequently connect to, and these routes could be prioritized for connections.
Fare Payment. As a regional route, transfers are an important way to extend the reach of service, and
the 2017 Route 10 on -board survey found that nearly a quarter of riders made a transfer on their trip.
Riders going between both transit systems to reach their final destination must pay full fare on both
systems and navigate using two fare payment applications or physical passes. An inter -agency fare
agreement would help reduce cost burdens for disadvantaged riders and could promote ridership on
both RTA and SMRT Routes. If SMRT were to assume or supplement even just part of the operation
of Route 10, an inter -agency agreement would still be recommended to preserve transfers to RTA,
SLO Transit, and SoCo Transit routes that are currently available with RTA passes. Use of common
fare media or purchasing systems could also help improve convenience, such as a single app which
could be used to purchase fares for multiple agencies.
March 2024 1 7Page 180 of 525
Route 10 Operational Analysis Findings
Santa Maria Regional Transit Zero Emission Bus Fleet Rollout Plan
Findings and Recommendations
While the subsidy comparison indicates that SMRT could operate Route 10 more cost effectively than
RTA, the majority of the route is in RTA's service area, and there are key connections to SoCo Transit
and SLO Transit for which RTA has existing transfer agreements. Operational savings for the route
would need to be balanced against upfront capital costs and the need to assume complementary
paratransit service (unless the route is classified as a commuter bus, per FTA guidelines). In particular,
SMRT would need to expand its fleet, whereas RTA is already in possession of buses for existing
operations. In the long term, either agency would incur costs related to transition to zero -emission
buses, and charging infrastructure would be needed to support operations with BEBs. As the agencies
transition, a BEB charging agreement should be considered to facilitate efficient BEB operations
across the region.
The City of Santa Maria has been providing a portion of its FTA 5307 funds to RTA to support the
operating costs of Route 10 since the mid -1990s, outside of a formal or defined method, and there is
a need to consider the most efficient use of public funds. Given that the analysis conducted indicates
that SMRT can provide service with lower operating cost, and there are other potential operating
efficiencies of buses beginning in Santa Maria, it is recommended that the two agencies discuss ways
to maximize limited funding resources to address rider needs.
Assuming RTA intends to continue operating Route 10 in its current configuration, there may be a
partnership opportunity for SMRT to operate supplemental express overlay service. This would allow
for service expansion using SMRT's drivers and would support earlier service northbound without
buses needing to deadhead from San Luis Obispo. There are a number of different ways this could
be structured, and continued discussions would need to take place on fare payment, schedules, and
transfers; any service arrangement should be delivered in a way prioritizes simplicity for riders. Per
California Transportation Development Act regulations, any extension of service into a neighboring
service area requires the approval of the affected transit district. This would apply to both SMRT
extending into RTA's service area as well as RTA's extension into Santa Maria as part of Route 10.
As a regional route, connecting services are important for customers to make complete trips and will
only become more important if operations are streamlined. With buses operating only once an hour,
timed transfers at major hubs like the Santa Maria Transit Center are crucial to making convenient
connections, but current SMRT and RTA schedules do not allow for timed transfers. Another factor
complicating passenger transfers between operators is the need to pay a second fare, which adds
cost and complexity. RTA already allows transfers to SLO Transit and SoCo Transit with its passes.
A similar agreement with SMRT would improve customer convenience for connections between Route
10 and SMRT's local routes.
March 2024 1 8Page 181 of 525
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MARIA,
CALIFORNIA, APPROVING APPLICATIONS FOR FEDERAL TRANSIT
ADMINISTRATION SECTION 5307 FUNDS FOR FISCAL YEAR 2024-25, FISCAL
YEAR 2025-2026, AND FISCAL YEAR 2026-27 FOR SANTA MARIA URBANIZED
AREA
WHEREAS, the City of Santa Maria desires to apply for Federal Transit
Administration (FTA) Section 5307 capital and operating assistance funds; and
WHEREAS, the City of Santa Maria provides fixed route and Americans with
Disabilities Act (ADA) transit services to the Santa Maria Urbanized Area (UZA) as Santa
Maria Regional Transit (SMRT); and
WHEREAS, SMRT is the Santa Barbara County Association of Governments'
SBCAG) designated grantee of FTA Section 5307 funds; and
WHEREAS, SBCAG has established a competitive process for the granting of FTA
Section 5307 funds; and
WHEREAS, SBCAG has designated SMRT to administer the competitive process
for the Santa Maria UZA; and
WHEREAS, SBCAG publicly advertised for FTA Section 5307 funding
applications; and
WHEREAS, the City of Santa Maria application for local capital and operating
assistance received the highest score and ranked first in the Santa Maria UZA; and
WHEREAS, there are sufficient FTA Section 5307 funds in the Santa Maria UZA
to award funding requests from the City of Santa Maria
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City
of Santa Maria, California, as follows:
1. The City of Santa Maria's SMRT Local Capital and Operating Assistance
application for FTA Section 5307 funds in the Santa Maria UZA are each
recommended for approval and funding by SBCAG Board of Directors.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Santa Maria held this 16th day of April 2024.
Page 182 of 525
Mayor
ATTEST:
Chief Deputy City Clerk
APPROVED AS TO FORM:
Risk Manager
City Attorney
APPROVED AS TO CONTENT:
Department Director
Interim City Manager
Page 183 of 525
FOR THE COUNCIL MEETING OF APRIL 16, 2024
COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager Alex Posada
BY: Director of Public Works Brett Fulgoni
SUBJECT: Santa Maria Regional Transit Fiscal Year 2023-24 Low Carbon
Operations Program Grant Application, Solar Array Electric Vehicle
Charger
Description:
The City Council will consider authorizing the Transit Program's recommended Fiscal
Year 2023-24 Low Carbon Operations Program grant application for the amount of
213,970 to be used for the purchase of two off -grid solar array electric vehicle chargers,
off the California Department of Goods & Services contract, to support the Transit
Program's fleet electrification efforts.
Environmental Notice: The activity is not a "Project" as defined under Section 15378 of
the California Environmental Quality Act State Guidelines; therefore, pursuant to State
Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
Adopt a Resolution authorizing the execution of the Certifications and Assurances and
authorized agent forms for the Low Carbon Transit Operations Program, approve the
grant application and receipt of Fiscal Year 2023-24 Low Carbon Operations Program
grant funding for $213,970 for the purchase of two Solar Array Electric Vehicle Chargers,
designate representatives to act on City Council's behalf, and amend the Transit
Program's Capital Maintenance Equipment Project Budget to reflect this project.
BACKGROUND:
The Low Carbon Transit Operations Program (LCTOP) was created by the State of
California to provide operating and capital assistance for transit agencies to reduce their
greenhouse gas emissions and improve mobility. Approved LCTOP projects include the
support of new or expanded bus or rail services, expansion of intermodal transit facilities,
and may include equipment acquisition, fueling, maintenance, and other costs to operate
those services or facilities, as long as the project supports reducing greenhouse gas
emissions. For service areas that include disadvantaged communities (DAC), at least 50
percent of the total funds received shall be expended on projects that will benefit DAC.
Page 184 of 525
SAN LUIS OBISPO COUNCIL OF GOVERNMENTS
STAFF REPORT
MEETING DATE: AUGUST 6, 2025 ITEM C-10
SUBJECT:
STAFF CONTACT:
MOU between SLOCOG, City of San Luis Obispo and City of Santa Maria
Ivana Rodriguez
SUMMARY
The City of Santa Maria’s public transit system, Santa Maria Regional Transit (SMRT) will be operating a
new express fixed-route pilot service from Santa Maria to San Luis Obispo beginning as early as September
2025. Coordination between SLOCOG, San Luis Obispo, Santa Maria, and SLO RTA has been ongoing to
mutually agree on the logistics of this pilot service. This staff report presents a Memorandum of
Understanding (MOU) for SLOCOG, the City of San Luis Obispo, and the City of Santa Maria to establish
mutually agreeable terms for the operation of inter-county services.
RECOMMENDATIONS
Staff: Execute the Memorandum of Understanding between SLOCOG, the City of San Luis Obispo and
the City of Santa Maria once finalized by each agency’s legal team.
TTAC: Support staff recommendation
CTAC: Support staff recommendation
DISCUSSION
Beginning as early as September 2025, Santa Maria Regional Transit (SMRT) will begin operating a new
express fixed-route pilot service from Santa Maria to San Luis Obispo. The pilot route will be in operation for
two years. The direct service route will depart from the Santa Maria Crossroads Shopping Center and travel
directly to the Downtown Transit Center in San Luis Obispo. The service will operate on weekdays only
during peak commute times in the morning and afternoon.
A Memorandum of Understanding (MOU) has been established to formalize each agency's role,
responsibilities, data sharing protocols, and communication methods during the pilot phase. This MOU is
currently being reviewed by agency’s legal team and will be released as a draft in the addendum for the
SLOCOG Board Meeting packet. As part of this MOU, SMRT will participate in the Regional Pass
Program, allowing passengers to use their existing regional passes on the new pilot route. RTA, which
administers the program, will compensate SMRT for accepted regional passes. Should SMRT decide to
make this route permanent after the pilot, a new MOU will be drafted to outline additional roles and
responsibilities for transit operators within San Luis Obispo County. SMRT will provide monthly
performance reports including on-time performance, ridership by stop, and customer feedback data to
SLOCOG and San Luis Obispo Transit.
The pilot service will help commuters traveling from Santa Maria to San Luis Obispo. This service is seen
as providing an alternative transit service that is not entirely duplicative of RTA’s Route 10 because there
are no stops in-between the origin and end destination. Riders who will benefit the most are those traveling
between Santa Maria and San Luis Obispo during the morning and evening on weekdays. Additional
transit service between the two cities can help reduce congestion if more people are able to commute via
transit and not single occupancy vehicle. Because it is a direct service, the travel time associated with this
pilot route is much more competitive with driving. SLOCOG staff is supportive of enhanced transit service
between these key destinations.
C-10-1 Page 185 of 525
C-10-2
The MOU will be provided in the
Addendum that will be distributed on
August 1, 2025.
Page 186 of 525
Item 7a
Department: Finance
Cost Center: Accounting
For Agenda of: 1/16/2026
Placement: Business
Estimated Time: 30 minutes
FROM: Emily Jackson, Finance Director
Prepared By: Debbie Malicoat, Deputy Finance Director
Tavy Garcia, Senior Accountant
SUBJECT: ACCEPTANCE OF THE ANNUAL COMPREHENSIVE FINANCIAL
REPORT, FEDERAL SINGLE AUDIT REPORT AND TRANSPORTATION
DEVELOPMENT ACT REPORT FOR FISCAL YEAR 2024-25
RECOMMENDATION
Review and accept the Annual Comprehensive Financial Report, the Federal Single Audit
Report and Transportation Development Act Report for Fiscal Year 2024-25.
REPORT-IN-BRIEF
The City produces general purpose financial statements as well as specifically focused
financial statements annually, which are audited by independent auditors. This report
presents three audited financial statements to the City Council for review and acce ptance:
the Annual Comprehensive Financial Report (ACFR), which are general purpose financial
statements; the Federal Single Audit Report, which are specifically focused on revenues
and expenditures of Federal funding; and the Transportation Development Act (TDA)
Report, which are specifically focused on revenues and expenditures related to this
funding source.
As more fully discussed herein, the auditors have issued an unqualified opinion on the
City’s financial statements, which means that in their opinion, the financial statements are
presented fairly and in conformity with generally accepted accounting principles.
POLICY CONTEXT
The City’s Charter under Section 810 requires the employment of an independent certified
public account to examine the City’s financials.
DISCUSSION
The accompanying Annual Comprehensive Financial Report (ACFR) has been prepared as
required by the City’s Charter and applicable State laws regarding financial reporting for
municipalities. The ACFR provides a final and audited representation of the City’s financial
Page 187 of 525
Item 7a
condition across all funds for the fiscal year that ended June 30, 2025. The ACFR was
published on the City’s website on December 18, 2025, and is included as Attachment A to
this report.
In accordance with the City Charter1, the City’s financial statements have been audited by
independent certified public accountants from Badawi & Associates. The objective of the
financial audit is to provide users of the financial reports with reasonable assurance from an
independent source that the financial reports are reliable and represent a fair assessment
of the City’s financial condition. The auditor issued the financial statements with an
unmodified opinion which means that they are presented fairly and in conformity with
generally accepted accounting principles (see pages 29-32 of the ACFR- Independent
Auditors’ report).
The independent auditors also reviewed the City’s Federal Single Audit Report and
Transportation Development Act (TDA) annual report for the Fiscal Year. Results and
findings are discussed further below.
Financial Results Highlighted in the ACFR
Within the ACFR, the Transmittal Memorandum and Management’s Discussion and
Analysis (MD&A) summarize the City’s fiscal performance and provide an analysis by
management of the influencing factors. They also provide information on the City’s fiscal
policies, practices, and financial results. Key variances from projected ending balances for
2024-25 are highlighted in the Transmittal Memorandum. Both sections allow the reader to
gain insight into the City’s fiscal year experiences that lead to the audited financials and
provide context to the statements that follow.
Financial results for fiscal year 2024-25 were generally positive, although there has been
a flattening of sales tax revenues, a decline in development-related revenue, and
continued increases in costs. General Fund revenues came in under budget by $814,190,
expenditures came in under budget by $7.0 million, and net other sources and uses,
which reflect transfers between the General Fund and other Funds, ended up using
$258,770 less than anticipated. The result was an ending fund balance of $51.8 million,
which was $6.5 million above budget estimates. As the chart below outlines, most of the
ending balance is committed or assigned for future spending or reserve requiremen ts,
and not available for spending in conformance with GASB 54 (ACFR page 53).
1 Section 810. Independent Audits.
The Council shall employ, at the beginning of each fiscal year, an independent certified public accountant
who, at such time or times as may be specified by the Council, at least annually, shall examine the books,
records, inventories, and reports of all officials, employees, departments, and agencies who receive,
handle, or disburse public funds. As soon as practicable after the end of the fiscal year, a final audit and
report shall be submitted by such accountant to the Council, one copy thereof to be distributed to each
member, one each to the City Clerk, the City Treasurer, the City Manager, and City Attorney respectively,
and three (3) additional copies to be placed on file in the office of the City Clerk where they shall be
available for inspection by the general public for the period required by the laws of the State of California.
Restricted and special assessment district funds shall be segregated in the audit report.
Page 188 of 525
Item 7a
The unassigned balance of $3.5 million represents the amount available for additional
spending and will be considered with the Mid-Year Budget Review on February 17, 2026.
The unassigned balance is about $600,000 lower than discussed in the preliminary
Fiscal Year 2024-25 End Report due to the $594,469 that appears in the Restricted
category. These amounts represent accounts for workers’ compensation and liability
claims that are held in trust by the City’s insurance third party administrators. There is no
net impact to total fund balance, but there is an impact to unassigned fund balance
because these are restricted for risk management activities.
Capital Outlay Fund
The Capital Outlay Fund meets the definition of a major fund2 and is displayed separately
on the financial statements. This is due, in large part, to the current unexpended balance
of $32.7 million in the fund. Major capital projects are planned, but have been delayed,
resulting in the fund balance. Staff expects to be able to significantly spend down this
balance with upcoming capital investments including, but not limited to the Righetti
Community Park, Police and Fire building improvements, fleet electrification, Higuera
complete street and other paving projects.
Enterprise Funds
The City maintains four Enterprise Funds for its Water and Sewer utilities, and the Parking
and Transit operations. Enterprise Funds are business-type activities within governmental
accounting and are reported separately from the General Fund.
2 Major funds in governmental accounting are significant individual governmental or enterprise funds with
revenues, expenditures, assets, or liabilities that meet specific threshold criteria (10% of their fund type
and 5% of all combined governmental/enterprise funds). The General Fund is always cons idered a major
fund.
General Fund 2024-25
Final Budget
2024-25
Actual
Positive (Negative)
Variance
Revenues 127,728,819$ 126,914,629$ (814,190)$
Expenditures 99,228,674 92,208,464 7,020,210
Other sources (uses)(28,487,384) (28,228,613) 258,771
Beginning fund balance 45,329,766 45,329,766 -
Ending fund balance 45,342,527$ 51,807,318$ 6,464,791$
Nonspendable - 5,533,017 5,533,017
Restricted - 594,469 594,469
Committed - 19,892,934 19,892,934
Assigned - 22,317,944 22,317,944
Unassigned - 3,468,954 3,468,954
Total ending fund balance 45,342,527$ 51,807,318$ 6,464,791$
General Fund Budget - Actual Comparison
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The primary sources of revenue for the Water, Sewer, and Parking Funds are fees for
sales and services. In the Transit Fund, Federal and State grants represent most of the
annual revenue. All four funds experienced an increase in net position for the year, as
reflected in the table below (ACFR page 51).
ACFR Organization
In accordance with generally accepted accounting principles for state and local
governments, the City’s ACFR is organized into three major sections: Introduction, Financial
Reports and Statistical Tables. The following is a brief summary of the contents of each of
these sections.
Introduction. The Transmittal Memorandum and other information of general interest are
presented in this section, including a directory of officials, advisory bodies, and an
organizational chart.
Financial Reports. This section includes the City’s primary financial statements in five
major parts:
1. Auditors’ opinion regarding the financial statements.
2. Management’s discussion and analysis providing a narrative overview of City-wide
finances, influencing factors, and operations experiences throughout the year.
3. The basic financial statements presenting the government-wide year-end results
combining the activities of the major funds (General, Capital Outlay and all four
Enterprise Funds) into governmental and business-type categories; the fund financial
statements; and the notes to the financial statements.
2024-25 2023-24
Revenues:
Program Revenues:
Charges for services 67,751,096$ 65,364,673$
Operating grants and contributions 12,767,465 6,762,934
Investment earnings 8,639,215 8,566,073
Miscellaneous and other -
Total revenues 89,157,776$ 80,693,680$
Program Expenses:
Public utilities 44,884,602$ 48,497,795$
Transportation 14,975,809 14,315,288
Total expenses 59,860,411$ 62,813,083$
Increase (decrease) in net position before transfers 29,297,365 17,880,597
Transfers (3,214,820) (2,636,032)
Change in net position 26,082,545$ 15,244,565$
Net position - beginning of year 275,530,186 260,285,621
Prior year restatement (91,366)
Net position - end of year 301,521,365$ 275,530,186$
Summary of Changes in Net Position
Business-Type Activities
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4. Required supplementary information presenting the General Fund actual results with
both the original and final adjusted budgets.
5. Other supplemental schedules and financial statements providing financial information
for each of the City’s non-major governmental and agency funds. This includes a
financial schedule presenting Local Revenue Measure revenues and uses in 2024-25.
Statistical Tables. This section provides demographic and financial tables showing current
and historical trend information for the City and is organized into six major parts:
1. Statistical overview. General information about the San Luis Obispo community.
2. General financial trends. Ten-year summary information on net assets, governmental
revenues and expenditures and fund balances.
3. Revenue capacity. Ten-year summary information on property and sales tax trends.
4. Debt capacity. Ten-year summary information on debt service requirements.
5. Economic and demographic trends. Ten-year summaries of taxable sales, building
permits and valuations, housing, population and other demographic trends.
6. Operating information. Ten-year trend information on operating indicators by function.
The City structures its statistical section to consider debt disclosure requirements including
all relevant information so the ACFR can be used for submission to the Electronic Municipal
Market Access (EMMA) system.
Recognition for Excellence in Financial Reporting
Beginning in fiscal year 1983-84, all of the City’s ACFRs have been awarded the Certificate
of Achievement for Excellence in Financial Reporting from the Government Finance Officers
Association of the United States and Canada (GFOA). This is a prestigious national award
recognizing the City’s use of the highest standards in preparing its annual financial report.
The certificate for 2023-24 is included in the ACFR document and staff will submit the 2024-
25 ACFR for the award program.
Single Audit Report
This document provides several items. First, it provides a report on the City’s internal
control when it comes to financial reporting. Second, it provides a schedule of
expenditures that were funded by Federal Grants and the City’s compliance with
applicable Federal regulations. Third, it provides a schedule of findings and questioned
costs, if any. The findings are areas of improvement for the City when it comes to the
internal controls that are designed to manage the risk with which the City’s assets are
safeguarded, and its finances are accurately reported, which then translates into proper
administration of Federal funding.
There are two findings and no questioned costs. The City’s responses to the auditor’s
findings are incorporated into the Single Audit Report (Attachment B). The auditor’s
comments generally reflect the difficulties encountered when implementing the City’s
Enterprise Resource Planning/Human Capital Management (ERP/HCM) cloud -based
Oracle system and both are continuations from the prior year. The City is currently at
some stage of resolution on these issues, utilizing an Oracle consultant for the necessary
reconfigurations. With the implementation of updated payroll configuration in October
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Item 7a
2025, staff believe that these findings are now resolved and are working with the City’s
auditors to confirm. Again, these are areas of improvement and neither of them put the
City’s revenues in jeopardy or question the appropriate accounting of expenditures.
TDA Report and Financial Statements
This document (Attachment C) provides information on the revenues received by the City
pursuant to the TDA. The City receives funding from the TDA for two specific purposes:
1. The development and construction of local streets and roads, including
pedestrian and bicycle facilities. Since these funds are legally restricted, the City
has a special revenue fund created to account for this portion of TDA revenues.
The City received $66,918 in TDA funding during the 2024 -25 fiscal year and
$90,000 was spent on pedestrian facility improvements, due to unspent prior year
allocations that carried forward. There still remains $10,050 at year end, from
unspent prior year allocations.
2. The Transit Fund is an enterprise fund to account for the revenues received
pursuant to the TDA, the Federal Transit Authority (FTA) and revenues from transit
operations. These revenues are allocated under specific statutes and are legally
restricted to pay for transit operations, the development of public transportation
systems and transportation planning. The Transit Fund received $2,576,381 in
TDA operating grants during the fiscal year. Of these funds, $1,592,240 was also
unspent at fiscal year-end due to Federal funding received for Transit and will be
available for future use.
In addition, this report demonstrates the City’s compliance with applicable TDA
regulations pertaining to acceptable fare revenue ratios. For the fiscal year ended in 2025,
the City was required to maintain a fare revenue ratio of 20%, and the actual ratio was
228% due to a change in calculation allowing the inclusion of federal grant funds as local
funds for the purpose of computing fare revenue ratios. This mandate is discussed further
in Note 7 of the report.
Public Engagement
The City’s annual audit and issuance of the annual comprehensive financial report fulfills
a legal requirement and does not have a public engagement component outside the
required presentation before Council during a public meeting.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in
this report, because the action does not constitute a “Project” under CEQA Guidelines
Sec. 15378.
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FISCAL IMPACT
Budgeted: Yes Budget Year: 2025-26
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $75,000 $66,491 $8,509 $0
State
Federal
Fees
Other:
Total $75,000 $66,491 $8,509 $0
The City budgets the cost for the auditing firm annually. The cost is appropriated with the
annual budget approval. The current fiscal year contains a budget of $75,000 for the
previous fiscal year audit. Actual costs are anticipated to be $66,491 in accordance wi th
the City’s contract with the auditing firm.
ALTERNATIVES
The City Council could decide to revise or not accept the Annual Comprehensive
Financial Report for fiscal year 2024-25. The report has been prepared in conformance
with a variety of accounting and other reporting requirements and represents the
professional evaluation and analysis by the City’s independent auditors. The auditors
have rendered an unqualified opinion which means that the reports are presented fairly
and in conformity with generally accepted accounting principles.
ATTACHMENTS
A - Annual Comprehensive Financial Report for Fiscal Year 2024-25
B - Single Audit Reports for Fiscal Year 2024-25
C - Transportation Development Act Report for Fiscal Year 2024 -25
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ANNUAL COMPREHENSIVE FINANCIAL REPORT
Fiscal Year Ended June 30, 2025
ERICA A. STEWART, MAYOR
EMILY FRANCIS, VICE MAYOR
MIKE BOSWELL, COUNCIL MEMBER
MICHELLE SHORESMAN, COUNCIL MEMBER
JAN MARX, COUNCIL MEMBER
Whitney McDonald, CITY MANAGER
Prepared by the Department of Finance
Emily Jackson, Finance Director
Debbie Malicoat, Deputy Finance Director/Controller
Tavy Garcia, Senior Accountant
Courtney Miles, Accountant
Liliana Vasilev Q, Financial Specialist
City of San Luis Obispo, California
www.slocity.org
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City of San Luis Obispo, California
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025
Table of Contents
Page
Introductory Section
Transmittal Memorandum...........................................................................................................................................................1-20
Report Purpose and Organization.................................................................................................................................................2
Profile of the City of San Luis Obispo .........................................................................................................................................4
Factors Affecting Financial Condition and Major Initiatives .......................................................................................................6
Financial Condition Overview ...................................................................................................................................................11
Relevant Financial Policies ........................................................................................................................................................14
Award for Excellence in Financial Reporting ............................................................................................................................19
Acknowledgments ......................................................................................................................................................................20
Directory of Officials and Advisory Bodies...................................................................................................................................21
City Council ...............................................................................................................................................................................21
Advisory Bodies .........................................................................................................................................................................21
Appointed Officials and Department Heads...............................................................................................................................21
Mission Statement..........................................................................................................................................................................22
Organizational Values....................................................................................................................................................................23
Organization of the City of San Luis Obispo .................................................................................................................................25
GFOA Certificate ..........................................................................................................................................................................26
Financial Section
Independent Auditors’Report...................................................................................................................................................29-32
Management’s Discussion and Analysis...................................................................................................................................33-59
Overview of the Financial Statements ........................................................................................................................................33
Financial Highlights ...................................................................................................................................................................36
Government-Wide Financial Analysis .......................................................................................................................................40
Financial Analysis of Governmental Funds ...............................................................................................................................44
Financial Analysis of Enterprise Funds......................................................................................................................................46
Combined Program Expense and Revenue for Business-Type Activities ..................................................................................50
General Fund Budgetary Highlights ...........................................................................................................................................52
Capital Asset and Debt Administration ......................................................................................................................................54
Economic Factors and Next Year’s Budget and Rates ...............................................................................................................56
Requests for Additional Information ..........................................................................................................................................59
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City of San Luis Obispo, California
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025
Table of Contents Page 2
Page
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Position .......................................................................................................................................................65
Statement of Activities............................................................................................................................................................66
Fund Financial Statements:
Balance Sheet –Governmental Funds ....................................................................................................................................69
Reconciliation of the Governmental Funds Balance Sheet to the
Government-wide Statement ofNet Position ......................................................................................................................70
Statement of Revenues, Expenditures and Changes in Fund Balance –
Governmental Funds ...........................................................................................................................................................71
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund
Balance to the Government-wide Statement of Activities ..................................................................................................73
Statement of Fund Net Position Business-Type Activities –Enterprise Funds..................................................................77-78
Statement of Revenues, Expenses and Changes in Fund Net Position Business-Type Activities –
Enterprise Funds..................................................................................................................................................................79
Statement of Cash Flows Business-Type Activities –Enterprise Funds ............................................................................80-81
Statement of Fiduciary Net Position -Fiduciary Funds ..........................................................................................................85
Statement of Changes in Fiduciary Net Position -Fiduciary Funds .......................................................................................86
Notes to the Basic Financial Statements ..............................................................................................................................89-134
Required Supplementary Information Section
Budgetary Comparison Schedule –General Fund.............................................................................................................137-140
Schedule of the Changes in the Net Pension Liability and Related Ratios –Miscellaneous
Agent Multiple –Employer Plan ..........................................................................................................................................141
Schedule of the Pension Plan Contributions –Miscellaneous Agent Multiple –Employer Plan .............................................142
Schedule of the City’s Proportionate Share of the Net Pension Liability –Safety Cost-Sharing Plan .....................................143
Schedule of the City’s Pension Contributions –Safety Cost-Sharing Plan ..............................................................................144
Schedule of the Changes in the Net OPEB Liability and Related Ratios .................................................................................145
Schedule of Employer OPEB Contributions ............................................................................................................................146
Notes to Required Supplementary Information ........................................................................................................................147
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City of San Luis Obispo, California
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025
Table of Contents Page 3
Page
Other Supplementary Information and Combining and Individual Fund Statements and Schedules
Local Transaction Tax Measure Funding Schedule ..........................................................................................................151-155
Nonmajor Governmental Funds ........................................................................................................................................157-161
Combing Balance Sheet –Nonmajor Governmental Funds ..............................................................................................162-170
Combining Statement of Revenues, Expenditures and Changes in Fund Balance
-Nonmajor Governmental Funds ..................................................................................................................................171-179
Schedule of Revenues, Expenditures and Changes in Fund Balances –Budget and Actual:
Downtown Business Improvement District Fund .................................................................................................................180
Transportation Development Act (TDA)Fund .....................................................................................................................181
Tourism Business Improvement District Fund .....................................................................................................................182
Gas Tax Fund........................................................................................................................................................................183
Community Development Block Grant (CDBG)Fund.........................................................................................................184
Law Enforcement Grants Fund .............................................................................................................................................185
Public Art Contributions Fund..............................................................................................................................................186
Avila Ranch CFD .................................................................................................................................................................187
SB1 Road Repair Fund .........................................................................................................................................................188
SB1186 ASP Certify .............................................................................................................................................................189
Affordable Housing BEGIN Loan Fund ...............................................................................................................................190
Avila Ranch DPA Fund ........................................................................................................................................................191
Opioid Settlement Fund ........................................................................................................................................................192
Asset Forfeiture Available Fund ...........................................................................................................................................193
SLR PAYGO City Share ......................................................................................................................................................194
Code Enforcement Abatement Fund .....................................................................................................................................195
Police Evidence Available Fund ...........................................................................................................................................196
Debt Service Fund ................................................................................................................................................................197
Custodial Funds ........................................................................................................................................................................199
Combining Statement of Fiduciary Net Position –Custodial Funds ..............................................................................200-202
Combining Statement of Changes in Fiduciary Net Position –Fiduciary Funds ...........................................................203-205
Statistical Section
Statistical Section –Overview (Unaudited).............................................................................................................................209
Financial Trends:
Net Position by Component –Last Ten Fiscal Years ...........................................................................................................210
Changes in Net Position –Last Ten Fiscal Years ..........................................................................................................211-212
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City of San Luis Obispo, California
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025
Table of Contents Page 4
Page
Governmental Activities Tax and Franchise Revenues by Source –Last Ten Fiscal Years.................................................213
Fund Balances, Governmental Funds –Last Ten Fiscal Years......................................................................................214-215
Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years .................................................................................................................................................216-218
General Fund Operating Expenditure Trends by Type –Last Ten Fiscal Years ...................................................................219
Statistical Section (Continued)
Revenue Capacity:
Assessed and Estimated Actual Value of Taxable Property –Last Ten Fiscal Years ...........................................................220
Property Tax Rates –Last Ten Fiscal Years .........................................................................................................................221
Principal Property Taxpayers –Current Year and Nine Years Ago ......................................................................................222
Secured Property Tax Roll Levies and Collections –Last Ten Fiscal Years ........................................................................223
Schedule of Taxable Sales and Permits by Category –Last Ten Calendar Years .................................................................224
Historical Sales and Use Tax Rates.......................................................................................................................................225
Schedule of Business Tax Certificates Issued .......................................................................................................................226
Debt Capacity:
Per Capital Outstanding Debt by Type –Last Ten Fiscal Years...........................................................................................227
Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capital
Last Ten Fiscal Years ........................................................................................................................................................228
Direct and Overlapping Long-Term Debt –Fiscal Year Ended June 30, 2023 ....................................................................229
Computation of Legal Debt Margins –Last Ten Fiscal Years..............................................................................................230
Revenue Bond Coverage:
Water Fund –Last Ten Fiscal Years.....................................................................................................................................231
Parking Fund –Last Ten Fiscal Years ..................................................................................................................................232
Demographic and Economic Information:
Demographic and Economic Statistics –Last Ten Fiscal Years ...........................................................................................233
Principal Employers –Current Year and Nine Years Ago ...................................................................................................234
Regular Authorized Positions –Last Ten Fiscal Years.........................................................................................................235
Operating Information:
Operating Indicators and Capital Asset Statistics by Function –Last Ten Fiscal Years................................................236-239
Water System Statistical Data ...............................................................................................................................................240
Water and Sewer Rates –Last Ten Fiscal Years ...........................................................................................................241-242
Water System Ten Largest Users –Fiscal Year Ended June 30, 2023 .................................................................................243
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INTRODUCTORY SECTION
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City of San Luis Obispo, Finance and Information Technology, 990 Palm Street, San Luis Obispo, CA, 93401-3249, 805.781.7130,
slocity.org
Date December 16, 2025
TO: The Honorable Mayor and Members of the City Council and Citizens of the
City of San Luis Obispo
FROM: Whitney McDonald, City Manager
Emily Jackson, Finance Director
SUBJECT: TRANSMITTAL MEMORANDUM FOR ANNUAL COMPREHENSIVE
FINANCIAL REPORT FOR FISCAL YEAR 2024-25
We are pleased to submit the City of San Luis Obispo’s 2024-25 Annual Comprehensive
Financial Report (ACFR). Section 810 of the City’s Charter requires that an audit of the City’s
financial records be conducted each year by an independent certified public accountant. Such
an audit has been performed and this report is being published as part of the requirement for
the fiscal year that ended June 30, 2025, within applicable timelines.
Though the audit is conducted by an independent certified public account firm, City
management assumes full responsibility for the completeness and reliability of the
information contained in this report. We attest that, to the best of our knowledge, the data
presented is accurate in all material respects, and all statements and disclosures needed for the
reader to obtain a thorough understanding of the City’s financial activities have been included.
To provide a reasonable basis for making these representations, management of the City has
established a comprehensive internal control and review framework that is designed both to
protect the government’s assets from loss, theft, or misuse and to compile sufficient and
reliable information for the preparation of the City’s financial statements in conformity with
U.S. Generally Accepted Accounting Principles (GAAP). Because the cost of internal controls
should not outweigh their benefits, the City’s comprehensive framework of internal controls
has been designed to provide reasonable rather than absolute assurance that the financial
statements will be free from material misstatement. However, internal controls are critically
reviewed by the auditors annually and Finance staff throughout the year to assure compliance
with applicable Governmental Accounting Standards Board (GASB) rules and best practices
in government accounting. Additionally, the City’s governing body receives reports on a
1
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TRANSMITTAL MEMORANDUM
quarterly basis and additional reports in accordance with State requirements are posted online
on the City’s website at www.slocity.org.
REPORT PURPOSE AND ORGANIZATION
Audited Financial Statements
The City’s financial statements were audited by Badawi and Associates, a firm of licensed
certified public accountants currently under contract with the City. The goal of the
independent audit was to provide reasonable assurance that the financial statements of the
City for the fiscal year ended June 30, 2025, are free of material misstatement. The
independent audit involved examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements; assessing the overall accounting principles used and
significant estimates1 made by management; and evaluating the overall financial statement
presentation.
The independent auditor concluded that the City’s financial statements present fairly2, in all
material respects, the respective financial position of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of the City as
of June 30, 2025. They also fairly represent the respective changes in financial position, and,
where applicable, cash flows in accordance with accounting principles generally accepted in
the United States of America. The independent auditors’ report is presented as the first
component of the financial section of this report beginning on page 29.
“Single Audit” for Federal Grant Programs. The independent audit of the financial
statements of the City was part of a broader, federally mandated “Single Audit” designed to
meet the special needs of Federal grantor agencies. The standards governing Single Audit
engagements require the independent auditor to report not only on the fair presentation of the
financial statements, but also on the audited government’s internal controls3 and compliance
with legal requirements, with special emphasis on the administration of Federal awards (such
as Transit funding). This audit has been completed and will be filed and distributed to
appropriate agencies to meet Federal requirements and deadlines.
1 Significant estimates included in the financial statements are made in conformity with GAAP.
2 The Term “present fairly” means that the financial statements give a reasonable view of the financial results, financial position, and cash-flow of the reporting
entity.
3 Internal controls are systematic measures instituted by an organization to conduct its business in an orderly and efficient manner; safeguard its assets and
resources; deter and detect errors, fraud, and theft; ensure accuracy and completeness of its accounting data; produce reliable and timely financial and
management information; and ensure adherence to its policies and plans.
2
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GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management’s Discussion and
Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and
should be read in conjunction with it. The City’s MD&A can be found immediately following
the report of the independent auditors beginning on page 33.
Organization of the Annual Comprehensive Financial Report
The report is presented in three sections: introductory, financial, and statistical.
SECTION ONE - The Introductory section includes this transmittal memorandum and other
information to familiarize the reader with the City, including a directory of officials and
advisory bodies, the City's mission statement and organizational values, and charts.
SECTION TWO - The Financial section consists of six parts: 1) the independent auditors’
report; 2) Management’s Discussion and Analysis; 3) the basic financial statements including
the government-wide financial statements; 4) fund financial statements; 5) notes to the
financial statements; and 6) required supplementary information; and additional statements
and schedules including the local transaction tax information, non-major governmental funds,
and agency funds.
SECTION THREE - The Statistical section includes selected unaudited financial and
demographic information generally presented on a multi-year basis. This information includes
financial trends, revenue trends, debt capacity, demographics, and economic and operating
information. This section also contains important information for the benefit of the required
bond disclosures and rating agencies.
As required by GAAP, these financial statements present the City (the primary government)
and its component units (entities for which the government is financially accountable).
Blended component units (although legally separate entities) are in substance part of the
government's operations, and so data from these units are combined with data of the primary
government. The City has three component units, the San Luis Obispo Capital Improvement
Board and the San Luis Obispo Public Financing Authority, both of which provide financing
for the construction and acquisition of City facilities, and the San Luis Obispo Parking
Authority, which manages and enforces the City’s parking regulations in compliance with
State laws. The Board/Authority is comprised solely of members of the City Council.
Activities of the Board/Authority are accounted for in the applicable City governmental or
enterprise funds.
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PROFILE OF THE CITY OF SAN LUIS OBISPO
With a population of about 48,700, the City is located eight miles from the Pacific Ocean and
is midway between San Francisco and Los Angeles at the junction of Highway 101 and scenic
Highway 1. The City serves as the commercial, governmental, and cultural hub of San Luis
Obispo County. San Luis Obispo is the county seat, a number of Federal and State regional
offices and facilities are located within the City, and California Polytechnic State University
and Cuesta College campuses are adjacent to and nearby the City. The City’s ideal weather
and natural beauty provide numerous opportunities for outdoor recreation at nearby City and
State parks, lakes, beaches, and open space areas.
As one of California’s oldest communities, the historical roots of San Luis Obispo run deep,
anchored by the enduring presence of Indigenous Peoples dating back at least 15,000 years
ago in the Diablo Canyon region. These first peoples hunted and shore-picked shellfish. The
Yak titʸu titʸu Yak tiłhini Northern Chumash Tribe, who have called the region home for over
10,000 years, have been integral in the historical development of the City. By 1504, coastal
land exploration took place by Spanish vessels, which carried members of the Filipino
community. Spanish invasion and colonization in 1769 led to the establishment of Missions
throughout California. The San Luis Obispo de Tolosa Mission was founded in 1772, the fifth
mission in the California chain of 21 missions, around which the City of San Luis Obispo
developed. It was first incorporated in 1856 as a General Law City and became a Charter City
in 1876. As a Charter City, San Luis Obispo has more local authority than cities that
incorporate under the general laws of the State of California. The Charter is the City’s
governing document, and any changes must be approved by the voters. The City’s Charter has
been amended several times since its adoption, most recently in August 2011.
Form of Government
As set forth in the City Charter, the City operates under the “Council-Mayor-City Manager”
form of government. The City Council has the authority to make and enforce all laws and
regulations with respect to municipal affairs, subject only to the limitations of the City Charter
and the State Constitution. There are four Council members, who are elected at-large and
serve overlapping, four-year terms. The Mayor is also elected at-large for a two-year term and
serves as an equal member of the Council. The City Council appoints the City Manager and
City Attorney. All other department heads are appointed by the City Manager.
City Services
The City provides a wide range of municipal services, including police and fire protection,
water and sewer utilities, street and parks maintenance, public transportation, parking, parks
and recreation, planning, building and safety, and other general government services.
4
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Financial data for all funds through which services are provided by the City have been
included in this report.
Several municipal services are provided through other governmental agencies or private utility
companies, including:
Service Agency
Health and Social Services County of San Luis Obispo
Courts State of California
Elementary and Secondary Schools San Luis Coastal Unified School District
Community College San Luis Obispo County Community College
District
Solid Waste Collection and Disposal San Luis Garbage Company
Gas, Electric and Telephone Private Utility Companies
The City is also a member of a Joint Powers Authority called Central Coast Community
Energy (3CE) which sources clean and renewable electricity at competitive prices for the
community and is delivered through the grid by Pacific Gas & Electric (PG&E). 3CE follows
a Community Choice Aggregator or “CCA” model, which is a community-focused, “not-for-
profit” model that allows for greater commitment to clean and renewable energy while
supporting community reinvestment for affordable and fair rates and equitable access to clean-
energy resources. It is locally controlled and governed by board members who represent the
communities served by 3CE. Becoming a member of 3CE was an integral part of the City’s
fiscal year 2019-20 Major City Goal for Climate Action. For more information visit:
www.3cenergy.org
Budgetary Policy and Control
Though the City adopts a two-year Financial Plan, annual budgets are legally appropriated by
the City Council by resolution and are prepared for each fund in accordance with its basis of
accounting. As provided under the City Charter, the City Manager is responsible for preparing
the budget and for its implementation after adoption. Financial reports are presented to the
City Council and posted online on a quarterly basis. At mid-year, staff prepares a more in-
depth status report for the City Council for the first six months of the fiscal year in addition to
any fund balance information and long-term forecast based on the audited annual
comprehensive financial report.
Since the City uses a two-year Financial Plan, operating appropriations not expended during
the first year may be carried forward into the second year for specific purposes with the
approval of the City Manager. When applicable, these amounts are shown as assigned for
5
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subsequent year expenditures in the financial statements. At the end of the second year of the
two-year plan, operating appropriations lapse unless they are committed by contract or
purchase order. Multi-year budgets are adopted for capital projects as necessary but revert to
fund balance after three years of non-activity.
The City Council has the legal authority to amend the budget at any time during the fiscal
year. The City Manager has the authority to make administrative adjustments to the
appropriated budget if those changes will have neither a significant policy impact nor affect
budgeted year-end fund balances. Legal budgetary control, meaning the level at which
management cannot overspend the budget without the City Council’s approval, is at the Fund
level. The City's budgetary policies are more fully described in Note 1 of the financial
statements.
Expenditure and budgeting details are maintained by the City for each fund and department
by program area at the line-item level. Budgetary control is exercised through a computerized
Enterprise Resource Planning (ERP) system, which interfaces with the City's general ledger.
The system maintains an ongoing record of budget balances and any authorized adjustments
throughout the year based on actual expenditures and purchase order obligations. Open
purchase orders at year-end are reported as assigned fund balance. The ERP system also
maintains the City’s list of capital assets.
It is the City's policy to maintain an operating reserve in the General Fund of at least 20% of
operating expenditures which is reflected in the committed fund balance. The City maintains
a similar policy for working capital balances in the water, sewer, and parking enterprise funds.
The Fleet Replacement Fund reserve policy is $500,000 and the Information Technology (IT)
Replacement Fund reserve policy is $400,000 which have also been met for the year. With
the 2021-22 fiscal year, the City also adopted a capital reserve in its Capital Outlay Fund of
20% of budgeted capital investments from the Local Revenue Measure for the fiscal year.
This reserve is adjusted with each budget adoption, funded from the local transactions tax,
and is reflected in the Capital Outlay Fund.
FACTORS AFFECTING FINANCIAL CONDITION AND MAJOR INITIATIVES
The information presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment within which the City
operated in fiscal year 2024-25.
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Building on Current Efforts to Move into the Future
The City Council adopted its two-year Financial Plan for 2025-27 in June 2025, amidst a time
of transition with revenue growth that is slowing, lingering inflationary pressures, and
growing uncertainly resulting from a rapid shift in national economic policy via tariffs, and
potential significant state and federal budget cuts. Despite this, the Financial Plan continues
progress on long standing Major City Goals, and aligns with the community’s values of
responsibility, equity, and sustainability. The City continues to monitor economic trends,
revenue performance, and workload demands and has activated a Fiscal Health Contingency
Plan to increase flexibility to address forecasted deficits of $3.0 million in fiscal year 2027-
28 and $1.9 million in fiscal year 2028-29, driven largely by the requirement to bring a fifth
fire station online to serve new development in the southern portion of the city.
The four Major City Goals guide continuation of workplans initiated over the last several
years. Years ago, Major City Goals were focused on specific programs and projects, but the
consistency of higher-level Major City Goals in recent years has supported a long-term focus
on initiatives that bring about sustained systemic change. As such, the Major City Goals drive
the City’s strategic direction while maintaining the established core services the community
expects and to which the community is accustomed. For additional information on the City’s
strategic initiatives go to 2025-27 Financial Plan.
Economic Resiliency, Cultural Vitality and Fiscal Sustainability
In collaboration with local partners, implement initiatives that reinforce a
thriving and sustainable local economy, support a diverse, inclusive, and vibrant
community, preserve arts and culture, and ensure fiscally responsible and
sustainable city operations.
Housing and Homelessness
Support the expansion of housing options for all, and continue to facilitate the
production of housing, including the necessary supporting infrastructure, with
an emphasis on affordable and workforce housing as well as accessibly
connected development. Collaborate with local non-profit partners, non-
governmental agencies, the county, the state, and federal governments to
advocate for increased funding and implementation of comprehensive and
effective strategies to prevent and reduce homelessness.
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Diversity, Equity, Inclusion (DEI)
Further our commitment to making San Luis Obispo a welcoming and inclusive
city for all by continuing to incorporate diversity, equity, and inclusion into all
programs and policies and advancing the recommendations of the DEI Task
Force.
Climate Action, Open Space, and Sustainable Transportation
Proactively address the climate crisis and increase resiliency through the
implementation of the Climate Action Plan. Use resources to reduce greenhouse
gas emissions and reach carbon neutrality by 2035, with a focus on the
preservation and enhancement of convenient and equitable alternative and
sustainable transportation, the preservation of open space, and equitable access
to parks and open space.
Significant Storms in January and March 2023
In January and March 2023, the City and region experienced severe winter storms that resulted
in two separate major disaster declarations at the Federal and State level, as well as emergency
proclamations at the local level. The City qualified for and is seeking reimbursement from
Federal and State resources for eligible costs related to the storms. The Federal Emergency
Management Agency (FEMA) reimbursement process continues to move slowly, but as of the
end of the fiscal year, the City had received $1.02 million in reimbursement and FEMA had
obligated an additional $920 thousand in project costs to the City. The City has submitted all
storm projects to FEMA and continues to respond to requests for information.
Overall Financial Condition
The following factors played into the City’s financial condition at the end of the 2024-25 fiscal
year:
1. Flattening sales tax revenues, including Local Revenue Measure (LRM) receipts,
which were previously expected to grow more significantly but are now trending
below what was forecasted last year by approximately $2.4 million annually.
2. Declining development-related revenue. As noted in prior budget reports, due to a
slowing of development activity, the City is seeing a decrease in development services
revenue of approximately $600,000 in fiscal year 2024-25 and is forecasting a
continuation of this decrease into the two years of the 2025-27 Financial Plan.
3. Rising personnel and project delivery costs. Increases in the cost of construction
materials, insurance, utilities, and employee compensation to recruit and retain a
talented workforce.
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4. Ongoing inflationary pressures continue to influence consumer behavior, project
costs, labor market dynamics, as well as the local economy.
5. Favorable Interest Earnings Fair Value Adjustment. The Fair Value (FV)
adjustment is essentially an accounting practice that reassesses the value of the City’s
investments when there is a difference between the fair market value and the value
recorded on the City’s books. Interest earnings and FV adjustments have been volatile
the past few years and higher investment income driven largely by market interest
rates is not expected to persist.
Economic Indicators for San Luis Obispo in General
Local Economic Environment. Historically, the City has experienced a relatively stable
economy, largely insulated from economic downturns in other parts of the State or the nation
due to major State and federal employers such as the California Polytechnic State University
(Cal Poly), California Men’s Colony, California Department of Transportation (Cal Trans)
District 5 offices, the Regional Water Control Board, and Camp San Luis Army base. San
Luis Obispo is also the County seat with significant county administrative offices and the
regional courts. The continued operation of the Diablo Canyon Nuclear Power Plant also
contributes to a stable economy as it generates approximately 10% of the State’s electricity.
PG&E continues to operate the plant and is funding plant improvements with a federal grant
that will not generate unitary tax on the portion of plant valuation that is federally funded.
This loss of unitary tax does not have a large direct impact to the City, however, it will have
a significant impact for the local school district and other government agencies that could
impact the local economic environment. This situation will be closely monitored by City staff.
Employment. Due to the local economic environment and a large government presence and
diversity, employment in the San Luis Obispo County region has historically been relatively
stable. As noted above, the State has a major university, correctional facility, and other
regional offices located in the community. The County government and school districts are
also major employers. Other major employers include two major hospital facilities, several
engineering and software companies, and PG&E. The announcement to prolong the use of the
Diablo Canyon Nuclear Power Plant presents an opportunity to continue jobs for trained
professionals in the region.
Key Revenue Sources. As the commercial, governmental, and cultural hub of San Luis
Obispo County, the City is fortunate to attract a diverse array of strong revenue sources. The
top three revenue sources are Sales & Use Tax, Property Tax, and Transient Occupancy Tax
(TOT). The 2020 voter-approved local transaction tax of one-and-a-half cent (Local Revenue
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Measure) went into effect in April 2021 to provide for a variety of City services including
infrastructure. This Local Revenue Measure has become the largest single tax revenue source
to the City, growing to over $30 million per year.
Long-Term Financial Planning. The City engages in several activities focused on long-term
financial planning to gauge and adjust to current economic conditions and trends. Various
scenarios are developed considering a multitude of information and resources. This effort was
very rigorous in fiscal year 2024-25 due to the uncertainties surrounding the economic
environment, increasing demand for City services, and ongoing storm-related project costs.
With adoption of the 2025-27 Financial Plan, the City Council adopted a set of Budget
Balancing Strategies to guide staff in developing balanced budgets both in times of financial
difficulty and growth.
Long-Term Fiscal Forecast. Before the two-year Financial Plan and budget process begins,
the City Council reviews long-term fiscal forecasts for the General and the Enterprise Funds
to help set the stage for sustainable decision-making. The purpose of the forecast is to consider
long-term fiscal health and to identify the funds’ ability, on an order of magnitude basis, to
maintain current services and existing assets and look at the opportunity to fund new
initiatives. As reported to the City Council, the General Fund forecast indicates a structural
deficit of $3 million for fiscal year 2027-28. The City is taking action to identify targeted
reductions to close the forecasted deficit but continues to preserve service levels and remain
nimble in the face of economic change and uncertainty, all while upholding the City’s values
and strategic commitments.
CalPERS and the City’s Unfunded Liability. To address its unfunded pension liabilities, the
City Council adopted a Fiscal Health Response Plan (FHRP), which outlines a strategy to pay
down the pension liability over a 20-year period – shortening the duration of required
payments and saving an estimated $19 million. A key component of the FHRP is making
Additional Discretionary Payments (ADPs) to CalPERS. To date, the City has made $22.3
million in ADPs to reduce its pension liability.
In March 2023, the City utilized an independent actuarial consulting firm to review its
progress on reducing its unfunded pension liabilities. The review confirmed that the City’s
ADPs had improved the plans’ funded status and that the City was taking appropriate steps to
address its pension debt. It was recommended that the City continue required payments and
ADPs. The City Council therefore adopted fiscal policies to prioritize APDs of at least the
first $2 million of unassigned fund balance annually.
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FINANCIAL CONDITION OVERVIEW
Despite the background of economic uncertainty the City ended the 2024-25 fiscal year in a
better fiscal position than originally anticipated. General Fund revenues exceeded budgetary
estimates by less than 1% and expenditures were 7% under budget. On June 30, 2025, the
total General Fund balance was $51.8 million; an increase of $6.5 million over fiscal year
2024-25, despite the ongoing storm related costs. Enterprise Funds similarly experienced
increases in net position. Overall, the City’s total net position increased by $60 million from
the prior year.
The table below shows the General Fund levels of fund balance in accordance with GASB
54 and the City’s policy pertaining to fund balance assignments. Fund Balance & Reserve
Policy
Continue to Focus on Sustainability and Long-term Fiscal Health
General Fund - Fund Balance as of June 30, 2025
Nonspendable:5,533,017$
Restricted:
Risk Management 594,469$
594,469$
Committed:
General government programs 848,111$
Risk management 4,437,620
Contingency fund 14,607,203
19,892,934$
Assigned:
CalPERS pension payment 2,000,000$
Solid Waste AB939 270,825
Establishment of Section 115 Trust 2,000,000
Revenue stabilization 2,000,000
Development services 145,136
SLO Repertory Theater Grant 6,700,000
Economic Development Tenant Improvement 608,000
Storm Related Costs 5,125,068
Storm Related Reimbursements 909,090
Subsequent year expenditures 2,559,825
22,317,944$
Unassigned:3,468,954$
Total Fund Balance 51,807,318$
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With its Major City Goal for Economic Recovery, Resiliency & Fiscal Sustainability, the City
continues its commitment to long-term fiscal health. The goal program aims to, in
collaboration with local partners, continue to assist with economic recovery for all from the
pandemic and sustain a thriving local economy by supporting local businesses, arts and
culture, and downtown vitality. It commits to practicing fiscal responsibility, paying down
unfunded pension liabilities, and investing in critical infrastructure.
Revenue Base Growth. The pandemic and the economic recovery that followed led to drastic
shifts in consumer spending and markets that provided strong tailwinds to the City’s revenue
growth. Social distancing led consumers to spend more on goods from hobby supplies to
luxury items, boosting sales tax revenue. Supply chain disruptions drove up new and used car
prices, providing additional benefit to sales tax. As pandemic restrictions eased, local trips
were favored over international travel and San Luis Obispo’s convenient location between the
San Francisco Bay Area and the Los Angeles Metropolitan Area made it a popular destination,
benefiting transient occupancy tax.
This rapid revenue growth, which began in the 2020-21 fiscal year, has begun to slow. Several
years of rapid inflation have impacted household finances. Interest rates remain elevated,
providing a dampening effect on car sales and building activity. After years of quick growth,
the City’s revenue streams are at very high levels and drivers for near-term growth are difficult
to identify.
Staff now expect that cyclical revenue streams like sales tax will grow at below inflationary
rates, making cost of living adjustments for employees and inflationary increases in other
spending difficult to fund. Property tax, once a slow grower, has become a leading source of
growth for the General Fund.
Containment of Operating Costs. The City’s efforts to control costs are ongoing while also
addressing the need to remain an attractive employer and provide the services the community
expects. The City has an extensive policy framework that allows immediate and nimble action
to address adverse changes in economic and fiscal condition and will continue to activate these
policies as needed. The City’s implementation of a 2nd and 3rd tier retirement benefit program
continues to change the City’s annual retirement contributions as 72% of the City’s workforce
is now enrolled in those retirement plan tiers. These actions have been instrumental in helping
the City contain current costs and long-term liabilities related to retirement benefit programs;
furthermore, two of the City’s bargaining units as well as the Management & Confidential
group pay additional contributions toward the City’s pension obligation.
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Infrastructure and Facilities Maintenance. As a growing city, San Luis Obispo has seen
capital expenditures grow steadily over the past decade. The need to maintain, repair or
replace its current infrastructure is met with the need to build amenities for the community at
large and the City’s Local Revenue Measure plays a vital part in providing funding for these
needs. The City has allocated approximately 75% of the revenue in any given year for
infrastructure improvements and enhancements, which the Public Works and Utilities
departments work to deliver within an overall plan that has increased in project number, scope,
and complexity. For a list of projects delivered in fiscal year 2024-25 see page 53 in the
Management Discussion and Analysis.
The City’s Capital Improvement Plan Review Committee evaluates projects for funding based
on established criteria and funding is allocated to projects in coordination with a number of
adopted plans including the General Plan, Active Transportation Plan, Downtown Concept
Plan, and Parks and Recreation Blueprint. Each plan represents hours of community input and
a vision to maintain and improve San Luis Obispo now and into the future.
Ongoing Commitment to Local Transaction Tax Measure Priorities (Local Revenue
Measure)
The City remains committed to the priorities for the use of the local transaction tax measure
as identified by the community. They include public safety, youth and senior services, code
enforcement, economic development, neighborhood street paving, open space preservation,
traffic congestion relief and flood protection. The following table summarizes how the local
transaction tax measure funds were used during fiscal year 2024-25.
Total uses of the funding during fiscal year 2024-25 amounted to $31.9 million, with an
additional $8.3 million encumbered through purchase orders or contracts; the remaining
balances of these resources are designated for future year expenditures. A more detailed
schedule of local transaction tax measure sources and uses is provided in the Other
Supplementary Information section of this report beginning on page 151.
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RELEVANT FINANCIAL POLICIES
The City of San Luis Obispo has adopted a comprehensive set of budget and financial policies
to provide guidance for all fiscal matters and resource allocations. The policies are reviewed,
amended, and updated with each Financial Plan adoption and as needed throughout the year.
The policies cover virtually every aspect of financial management but several of these policies
are particularly relevant to the understanding of the City’s financial performance in fiscal year
2024-25. As noted previously, the Council adopted a new set of Budget Balancing Strategies
with adoption of the 2025-27 Financial Plan in June 2025. That document is intended to
provide guidance to staff in developing a balanced budget both in times of financial difficulty
and growth, and demonstrates staff and the City Council’s commitment to ongoing assessment
of policy and procedure guidance to ensure an appropriate framework to meet the needs of the
organization.
Debt Administration Policies
The City’s Capital Financing and Debt Management policies contain general guidelines for
refinancing of outstanding debt. These guidelines call for periodic review of all outstanding
debt to determine refinancing opportunities, particularly to create economic benefit such as
lower debt service payment or reduction of principal. The City evaluates various options when
considering the issuance of debt to benefit from the best long-term terms and conditions.
Revenues:
Sales and use tax - Measure G add-on tax 30,926,285$
Total Revenues 30,926,285$
Uses:
Operating Programs 11,018,737$
Capital Projects 20,836,263
Total Uses 31,855,000$
Changes in Fund Balance (928,715)$
Prior Sales Tax Measure Balance 1,776,826$
Net Available for future year appropriations 848,111$
Local Sales Tax Measure Revenue & uses Summary
FY 2024-25
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Information on the City’s outstanding debt issues and other long-term liabilities is provided
in Note 7 in the notes to the financial statements.
In February 2025, Fitch Ratings, a nationally recognized statistical rating organization,
reviewed the City’s financials, its fiscal outlook, and the current rating. On February 3, 2025,
Fitch Ratings subsequently concluded that there should be no change to the existing rating at
AA+ with a stable rating outlook. Fitch Ratings’ long term credit ratings are assigned on an
alphabetic scale from AAA to D. The City’s AA+ bond rating means that the City’s
investment grade is “quality.” Specifically, current lease revenue bonds (LRBs) issued by the
San Luis Obispo Public Financing Authority remain at an 'AA’ rating and the LRBs issued by
the City of San Luis Obispo Capital Improvement Board at an 'AA' rating. In addition, in April
2023, Standard & Poor’s Global Ratings upgraded the City’s Water Revenue bonds from ‘AA-
’ to ‘AA.’ At this time, the City of San Luis Obispo has no general obligation debt.
Fitch Ratings’ analysts had previously commended the City’s ability to respond to the
economic impacts of the COVID-19 pandemic, remarking “budget management at times of
recovery is very strong, leaving the city well prepared to manage the current period of
economic stress. The city engages in thorough and conservative long-term financial planning
with a focus on maintaining structural budget balance, maintaining the city's capital assets
with minimal debt reliance, and proactive efforts to pay down its unfunded retirement
liabilities above actuarially determined levels.”
Budgetary Policies
The City of San Luis Obispo has a policy that requires the adoption of a balanced budget over
the two-year period of the Financial Plan. This means that operating revenues must fully cover
operating expenditures, including debt service. Additionally, ending fund balance (or working
capital in the enterprise funds) must meet minimum policy reserve levels. Under this policy it
is allowable for total expenditures to exceed revenues in any given year but only when fund
balance is used to pay for capital improvement plan projects or other “one-time,” non-
recurring expenditures.
Fund Balance and Reserve Policies
The City’s policies recognize the importance of long-range planning in managing the City’s
fiscal affairs in order to provide for stable operations, promote more orderly spending patterns,
and assure the City’s long-term fiscal health. The reserves contained in the General Fund and
Enterprise Funds play a pivotal role in this strategy. The reserve policies call for a minimum
fund balance of at least 20% of operating expenditures in the General Fund and a working
capital level of 20% of operating expenses in the Water, Sewer, and Parking Enterprise Funds.
The policies also require the Fleet Management and Information Technology (IT)
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Replacement Funds to provide for the timely replacement of vehicles and equipment as well
as IT equipment and software and a reserve is retained in these funds to safeguard against
unforeseen and unfunded issues. All reserve policies continue to be met as of fiscal year 2024-
25, reflecting replenishment of the General Fund reserve that was used in responding to the
2023 winter storms.
To further strengthen the Water and Sewer fund against revenue fluctuations, both funds carry
a Rate Stabilization reserve of 10% of sales revenue for Water and 5% of sales revenue for
Sewer.
Long-Term Liabilities and Maintenance of Infrastructure
With the 2017-19 Financial Plan, the City began to incorporate into the City’s fiscal policies
the use of one-time funds above policy reserve to unfunded pension liabilities and
infrastructure. Additionally, the City began addressing the long-term needs of its capital assets
and categorizing asset maintenance, asset replacement, and new assets driven by new
development. The City Council received a first presentation of the long-term needs of its
infrastructure in early 2018 and the assessment continued into fiscal year 2019-20,
culminating in the City Council’s decision to place a measure on the November 2020 ballot
for a 1.5 cent local transaction tax measure to supplant and add to the 2006 enacted half-cent
measure. The measure was successfully approved by 58% of the voters and the new local
transaction tax went into effect on April 1, 2021.
This Local Revenue Measure has now become the City’s largest tax revenue source, and the
City remains committed to the majority of the funds being used to maintain, replace, and
renew its growing infrastructure needs.
Pension and Other Post-Employment Benefits
The City contributes to the California Public Employees’ Retirement System (CalPERS), an
agent multiple-employer public employee defined benefit pension plan. CalPERS provides
retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan
members and beneficiaries. CalPERS acts as a common investment and administrative agent
for participating public entities within the State of California. Benefit provision and all other
requirements are established by State statute and City ordinance. The amount of the City’s
required annual contribution is determined actuarially and is reported to the City via the
Annual Valuation Reports provided by CalPERS for each retirement plan.
It is the policy of the City to fully fund the annual contribution to ensure that the plan will
fully meet its obligation to retired employees on a timely basis. Prepaying the City’s unfunded
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liability will also reduce overall annual cost depending on whether approved actuarial
assumptions are realized and are not adjusted by the CalPERS Board.
As part of its cost reduction strategy, the City has implemented 2nd Tier and the state mandated
3rd Tier retirement benefit programs for new hires while also requiring all employees to pay
at least the full amount of the member-share of the annual retirement contribution. Beginning
in 2018-19, and increasing in 2019-20, the City negotiated further cost sharing with employee
groups to pay into CalPERS which will help lessen pension impacts to the City’s budget. The
City continues to monitor legal developments and legislation that could positively or
negatively impact the City’s finances and plans to counteract any adverse investment results
with additional payments to CalPERS.
The City has also established a Section 115 Trust fund with the California Employer’s Pension
Prefunding Trust (CEPPT) and had planned to make its first contribution of $2.4 million using
unassigned fund balance at the end of fiscal year 2022-23. Instead, the unassigned fund
balance was allocated to infrastructure projects which had increased in cost due to inflationary
factors. Deferral of contributions to the Section 115 Trust continue in the current fiscal year.
Despite not having contributed funding to the Section 115 Trust, the City has made $22.3
million in Additional Discretionary Payments to date.
All employees currently pay the full employee contribution. Total contribution rates as a
percent of salary, including any additional percentages agreed upon are listed in the table
below:
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Other Post-Employment Benefits (OPEB). The City’s primary OPEB cost obligation is for
retiree health benefits under its election to participate in the CalPERS Health Benefit Program
under the “unequal contribution option.”
When the City joined the CalPERS health plan in 1993, it immediately experienced an
increase in the plan choices available along with a significant reduction in rates. Due to
CalPERS purchasing power, the City continues to experience competitive health care rates.
However, as a condition of joining the CalPERS health program, the City agreed to contribute
the minimum monthly amount required by law towards retiree health care coverage for both
active and retired employees. This allows retired employees to purchase health insurance at
the same rate offered to active employees.
Additionally, the City had established certain post-retirement health care benefits available to
executive management employees appointed prior to August 2000. There is only one
employee remaining who receives one-half of the retiree health insurance premiums paid by
the City through the City's group health plan. This provision ceases upon the death of the
retired employee. These OPEB benefits were financed on a pay-as-you-go basis in the past.
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As directed by Council in May 2008, the City began fully pre-funding the OPEB obligation
via an irrevocable trust in fiscal year 2008-09.
Additional information on the City’s retirement and post-employment benefits can be found
in Note 9 in the notes to the financial statements.
GASB Pronouncements for fiscal year 2024-25
GASB Statement No. 102 – Certain Risk Disclosures – The primary objective of this
Statement is to provide users of government financial statements with essential information
about risks related to a government’s vulnerabilities due to certain concentrations or
constraints. The City has implemented this statement in the current fiscal year .
AWARD FOR EXCELLENCE IN FINANCIAL REPORTING
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of
San Luis Obispo for its annual comprehensive financial report for the fiscal year ended June
30, 2024.
The Award Program
The Certificate of Achievement is a prestigious national award recognizing conformance with
the highest standards for preparation of State and local government financial reports.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily
readable and efficiently organized annual comprehensive financial report whose contents
conform to program standards. This report must satisfy both U.S. generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City has received a
Certificate of Achievement each year since 1984. Staff believe that the City’s current ACFR
continues to conform to the Certificate of Achievement program requirements and will submit
it to GFOA to determine its eligibility for another certificate.
Value of Program Participation. There are benefits to participating in these programs beyond
simply receiving recognition for the City’s efforts. For example, by striving to meet program
standards and goals, the City produces better reports. Additionally, as part of the review
process, comments for improvement from other municipal finance professionals who review
the reports from a “fresh” perspective are received. Staff believes that this results in
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continuous improvements in reporting the City’s financial results to elected officials, staff,
and other interested parties such as bondholders, credit agencies, and the public at-large.
ACKNOWLEDGMENTS
The preparation and development of this report would not have been possible without the
year-round dedication of the Finance Department staff and their special efforts, working in
conjunction with the City's independent auditors, to produce this document.
We would like to take this opportunity to compliment all those staff members within each
City department, as well as our independent auditors who were associated with the preparation
of this report. We would also like to thank the City Council for the continued support and
dedication in planning and conducting the financial operations of the City in a fiscally
responsible and progressive manner.
Whitney McDonald, City Manager
Emily Jackson, Finance Director
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DIRECTORY OF OFFICIALS AND ADVISORY BODIES
CITY COUNCIL
Erica A. Stewart Mayor
Emily Francis Vice Mayor
Mike Boswell Council Member
Jan Marx Council Member
Michelle Shoresman Council Member
ADVISORY BODIES
Active Transportation Committee
Administrative Review Board
Architectural Review Commission
Construction Board of Appeals
Council Compensation Committee
Cultural Heritage Committee
Housing Authority
Human Relations Commission
Investment Oversight Committee
Mass Transportation Committee
Parks and Recreation Commission
Personnel Board
Planning Commission
Promotional Coordinating Committee
Revenue Enhancement Oversight Commission
Tourism Business Improvement District Board
Tree Committee
APPOINTED OFFICIALS AND DEPARTMENT HEADS
Appointed Officials
Whitney McDonald City Manager
J. Christine Dietrick City Attorney
Department Heads
Scott Collins Assistant City Manager
Greg Hermann Deputy City Manager
Timmi Tway Director of Community Development
Emily Jackson Director of Finance
Todd Tuggle Fire Chief
Nickole Domini Director of Human Resources
Richard Scott Police Chief
Aaron Floyd Director of Public Works and Utilities
Greg Avakian Director of Parks & Recreation
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MISSION STATEMENT
SAN LUIS OBISPO STYLE
Quality with Vision WHO ARE WE?
People Serving People
A team that puts high value on each citizen it serves.
Providers of programs that meet basic service needs of each citizen.
Enhancers of the quality of life for the community as a whole.
WHAT DO WE STAND FOR?
Quality in all Endeavors –Pride in Results
Service to the community –the best –at all times.
Respect –for each other and for those we serve.
Value –ensuring delivery of service with value for cost.
Community involvement –the opportunity to participate in attaining the goals of the City.
WHERE ARE WE GOING?
Into the Future with a Design
Planning and managing for levels of service consistent with the needs of the citizens.
Offering skills development and organizational direction for employees in order to improve the delivery of
municipal services.
Developing sources of funding and establishing a sound financial management program which will result in
fiscal independence and flexibility in the delivery of City services.
Providing the residents of the City with accurate and timely information on issues which affect them, and
encouraging the full utilization of City services.
Promoting the City as a regional trade, recreational and tourist center and improving the quality of life for
residents and visitor.
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ORGANIZATIONAL VALUES
We, as an organization, embrace opportunities to improve our services and the quality and effectiveness of our
relationships with the community and our teams. The following values guide and inspire our efforts.
Shared Vision, Mission and Goals
We have a sense of common purpose and direction pursued with passion and translated into concrete actions.
Service
We are dedicated to the best use of resources to fulfill identified community goals and needs.
Leadership and Support
We recognize that the ability to lead can be found at all levels and that to create an environment to succeed requires
leading by example.
Communication
We foster open and clear discussion that encourages the willingness to speak up and to listen, within a framework of
respect and understanding.
Team Players
We encourage effective working relationships within and between departments and the public to address issues and
achieve valuable results.
Honesty, Respect and Trust
We honor commitments, acknowledge legitimate differences of opinion and accept decisions reached with integrity.
Initiative and Accountability
We take personal responsibility to do what needs to be done and report the results in a straightforward manner.
Innovation and Flexibility
We are open to change and willing to try new ways to fulfill the organization’s vision, mission, and goals more
effectively.
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Employee Development and Recognition
We encourage and support each employee to improve relevant job skills and celebrate personal and team
accomplishments.
Stewardship and Ethics
We promote public trust by using City resources wisely, and through consistent fulfillment of these values.
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Patrol Fire, Medical & Haz Mat Natural Resources Recruitment Community Services Administration
Traffic Safety Emergency Response Economic Development Labor Relations
Investigations Hazard Prevention Cultural Activities Fair Employment
Neighborhood Services Fire Inspections City Clerk Services Risk Management
Animal Regulation Disaster Planning General Administration Human Relations
Information Technology
GIS Management
Budget Recreation Programs Water Engineering Long Range Planning
Purchasing Ranger Services Sewer Transportation Development Review
Accounting & Revenue Park Planning Utilities Resource Creek & Flood Protection Building & Safety
Support Services Golf Course Conservation Maintenance Services:CDBG Administration
Finance Administration Public Art Whale Rock Reservoir Streets, Parks, Bldgs Housing
* All Department Heads are appointed by the City Manager
RESIDENTS
ADVISORY
BODIES
CITY
MANAGER
MAYOR &
CITY COUNCIL
DeptAppointed by the City Council Reporting to the City Manager
CITY
ATTORNEY
Police Fire
Finance Community
Development
Administration
Dept Reporting to the Assistant City Manager
Utilities
Human
Resources
Parks &
Recreation
Public
Works
Community Services
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of San Luis Obispo
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
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FINANCIAL SECTION
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of San Luis Obispo
San Luis Obispo, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of the City of San Luis
Obispo, California (City) as of and for the year ended June 30, 2025, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements as listed in the
table of contents.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City, as of June 30, 2025, and the respective
changes in financial position and, where applicable, cash flows thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are required to be independent of the City and to meet our other
ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Page 233 of 525
To the Honorable Mayor and Members of the City Council
of the City of San Luis Obispo
San Luis Obispo, California
Page 2
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently
known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a
material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control. Misstatements are considered
material if there is a substantial likelihood that, individually or in the aggregate, they would influence
the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is
expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control–
related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, budgetary comparison information, pension plan and OPEB
plan information on pages 33-59 and 137-147 be presented to supplement the basic financial statements.
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To the Honorable Mayor and Members of the City Council
of the City of San Luis Obispo
San Luis Obispo, California
Page 3
Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements. The local sales tax measure funding schedule,
combining and individual nonmajor fund financial statements and budgetary comparison schedules,
are presented for purposes of additional analysis and are not a required part of the basic financial
statements.
The local sales tax measure funding schedule, the combining and individual nonmajor fund financial
statements and budgetary comparison schedules on pages 151-205 are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the local sales tax measure funding schedule, the combining
and individual nonmajor fund financial statements and budgetary comparison schedules are fairly
stated in all material respects in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual comprehensive financial
report. The other information comprises the introductory and statistical sections but does not include
the basic financial statements and our auditor's report thereon. Our opinions on the basic financial
statements do not cover the other information, and we do not express an opinion or any form of
assurance thereon. In connection with our audit of the basic financial statements, our responsibility is
to read the other information and consider whether a material inconsistency exists between the other
information and the basic financial statements, or the other information otherwise appears to be
materially misstated. If, based on the work performed, we conclude that an uncorrected material
misstatement of the other information exists, we are required to describe it in our report.
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To the Honorable Mayor and Members of the City Council
of the City of San Luis Obispo
San Luis Obispo, California
Page 4
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 16,
2025, on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the City’s internal control
over financial reporting and compliance.
Badawi & Associates, CPAs
Emeryville, California
December 16, 2025
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Management’s Discussion and Analysis
Overview of the Financial Statements
The discussion and incorporated analysis in this document are intended to serve as an introduction
to the City’s basic financial statements, which include the following components: (1) government-
wide financial statements, (2) fund financial statements and (3) notes to financial statements. This
report also contains required supplementary information (RSI) as well as other supplemental
financial information.
Government-wide Financial Statements. This set of statements is designed to provide readers
with a broad overview of the City’s finances, in a manner similar to private-sector business
reporting.
The Statement of Net Position presents financial information on all the City’s assets/deferred
outflows of sources and liabilities/deferred inflows of sources, with the difference reported as net
position. In the private sector, it is similar to a balance sheet.
Over time, increases or decreases in net financial position may serve as a useful indicator of
whether the financial position of the City is improving or declining. In conformance with GASB
68, the Statement of Net Position reported for fiscal year 2024-25 considers the City’s long-term
pension liabilities, effectively decreasing the City’s net financial position.
The Statement of Activities presents changes in the government’s net position during the most
recent fiscal year. All changes in net position are reported during the period when the underlying
events giving rise to the change occur, regardless of the timing of the related cash flow. Thus,
revenues and expenses are reported in this statement for some items that will only result in cash
flows in future fiscal periods such as revenue pertaining to uncollected taxes.
The City’s government-wide financial statements distinguish the functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
functions that are intended to recover all or a significant portion of their cost through user fees or
that are required by grantor agencies or City policies to be accounted for in this fashion (business-
type activities).
The governmental activities include: (1) public safety, (2) transportation, (3) leisure, cultural and
social services, (4) community development and (5) general government support services such as
legal services, elections, human resources, risk management, finance, and information technology.
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Management’s Discussion and Analysis
The business-type activities of the City include: (1) water, (2) sewer, (3) parking operations and
the (4) transit program.
As required by U.S. Generally Accepted Accounting Principles (GAAP), these financial
statements present the City (the primary government) and its component units (entities for which
the government is considered to be financially accountable). Blended component units, although
legally separate entities, are in substance, part of the government's operations and data from these
units are combined with data of the primary government.
The San Luis Obispo Capital Improvement Board, the San Luis Obispo Public Financing Authority
and the San Luis Obispo Parking Authority are reported as blended component units in these
statements. All provide financing for the construction and acquisition of City facilities and consist
of members of the City Council. Activities of these units are accounted for in the applicable City
governmental funds. Separate financial statements are not prepared for the San Luis Obispo
Capital Improvement Board, San Luis Obispo Public Financing Authority, or San Luis Obispo
Parking Authority. The City has no component units that require discrete presentation in
accordance with Governmental Accounting Standards Board (GASB) standards.
Pension Obligation. Pursuant to GASB Statement No. 68 (GASB 68), Accounting and Financial
Reporting for Pensions, the City reports on the unfunded pension liability on the full accrual basis
of accounting in the government-wide financial statements. The reports also include disclosure
requirements and supplementary schedules as required by GASB 68. The measurement date for
fiscal year 2024-25 pension liabilities is as of the fiscal year ended June 30, 2024. This date lags
by a year, reflecting the time it takes for the pension system to prepare reports, which is common
for all member agencies, and was used so that these financial statements could be issued in an
expedient manner. Activity (i.e., contributions made by the City) occurring during fiscal year
2024-25 are reported as deferred outflows of resources in accordance with GASB Statement No.
71.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The City, like
other state and local governments, uses fund accounting to ensure and demonstrate compliance
with finance-related legal requirements. All of the funds of the City can be divided into three
categories: (1) governmental funds, (2) proprietary funds, and (3) fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike
the government-wide financial statements, governmental fund financial statements focus on near-
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Management’s Discussion and Analysis
term inflows and outflows of spendable resources, as well as on balances of spendable resources
available at the end of the fiscal year. Such information reflects financial resources available in the
near future to finance the City’s programs.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the government’s near-term
financial decisions. Both the governmental funds balance sheet and the governmental funds
statement of revenues, expenditures and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The City maintains several individual governmental funds organized according to their purpose
(general, special revenue, debt services, and capital projects). Information is presented in the
governmental funds balance sheet and in the governmental funds statement of revenues,
expenditures, and changes in fund balances. The General Fund and Capital Outlay Fund are both
considered major funds1. Data from the non-major governmental funds are combined into one
aggregated presentation. Individual fund data for each of the non-major governmental funds is
provided in the form of combining statements in the supplementary information section in this
report.
Of the major funds, the City adopts an annual appropriated budget for the General Fund. A
budgetary comparison statement has been provided as required supplementary information to
demonstrate compliance with the budget. Budgetary information for non-major governmental
funds with annual budgets has been provided with the fund financial statements in the
supplementary information section in this report.
Proprietary Funds. Proprietary funds are generally used to account for services for which the City
charges customers; either outside customers or internal units/divisions of the City. Proprietary
funds provide the same type of information as shown in the government-wide financial statements,
only in more detail.
The only type of proprietary funds the City maintains is enterprise funds. The Water, Sewer,
Parking, and Transit Funds are presented as business-type activities in the government-wide
financial statements. The City considers all four of its enterprise funds to be major funds.
1 See Note 1 Summary of Significant Accounting Polices for a detailed explanation of fund types including major
funds.
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Management’s Discussion and Analysis
Fiduciary Funds. Custodial funds are the only type of fiduciary funds maintained by the City.
These are used to account for resources held for the benefit of parties outside the primary
government. Fiduciary funds are not reflected in the government-wide financial statements
because the resources of those funds are not available to support the City’s own programs. An
example of a custodial fund may include donations provided to the City to be utilized for specific
purposes (i.e. open space, environmental mitigation funds, etc.) as well as other funds held in trust
of another entity to be utilized for a specific purpose. A specific example is the Hazardous
Materials Task Force Fund, created to provide special fire services around the county, which is
funded by multiple county and city agencies.
The accounting used for fiduciary funds is much like that used for proprietary funds. The Custodial
Funds are presented with the fund financial statements in the supplementary information section.
Notes to the Financial Statements. The notes provide additional information that is essential to
the reader for a full understanding of the data provided in the government-wide and fund financial
statements.
Other Information. In addition to the basic financial statements and accompanying notes, this
report also presents required supplementary information including budgetary comparison
schedules, reporting of the local transaction tax measure (Measure G and G-20) and more detailed
information concerning the City’s net pension liability, schedule of contributions to the pension
plan and progress in funding its obligation to provide other post-employment benefits (OPEB).
Statistical Information. The statistical section presents detailed information as a context for
understanding what the information in the financial statements, notes disclosures, and required
supplementary information indicates about the City’s overall financial health. This information
has been adjusted over time to also serve as required bond disclosure information.
Financial Highlights
The following information provides a narrative overview and analysis of the financial activities of
the City of San Luis Obispo (City) for the fiscal year that ended June 30, 2025. It should be read
in conjunction with the transmittal memorandum, the basic financial statements, and the
accompanying notes.
In fiscal year 2024-25 the City Manager activated the Fiscal Health Contingency Plan (FHCP) in
April 2025 in order to address the economic uncertainty and forecasted future budget deficits. Due
to its activation towards the end of the fiscal year, the FHCP did not contribute significantly toward
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Management’s Discussion and Analysis
expenditure savings at year end, but did help to preserve some flexibility to address the forecasted
deficits. Total revenue for the General Fund finished approximately $1.0 million below budget due
to lower sales tax receipts, a decline in fee revenues, and delays in reimbursement for the winter
storms that occurred during 2023. While some individual revenue streams underperformed, the
broader categories of tax revenue, user fees, and general government revenue all exceeded budget.
Winter Storm update
In January and March 2023, the city and region experienced severe winter storms that resulted in
two separate emergency declarations at the Federal and State level, as well as emergency
proclamations at the local level. The City is eligible for reimbursement for a majority of the storm
related costs through the Federal Emergency Management Agency (FEMA) and the California
Disaster Assistance Act (CDAA). Although, all storm related expenditures have been submitted
for reimbursement as of fiscal year 2024-25, the reimbursement process continues to move slowly
due to turnover in the FEMA Program Delivery Managers assigned to assist local agencies in
submitting projects for reimbursement and a lack of clarity about the information required in order
to submit projects. Based upon staff delivery capacity and FEMA reimbursement timeframes, staff
continues to prioritize storm damage projects founded upon the need to mitigate previously
completed projects, protect existing infrastructure, and/or represent projects that must be
completed. As of the end of fiscal year 2024-25, the City had received $1.02 million in storm
project reimbursement and another $920,000 in project expenses had been obligated by FEMA for
reimbursement not yet provided to the City.
Compensated Absences The City implemented the GASB 100 pronouncement during fiscal year
2023-24, a year earlier than required. The aim of the new guidance was to more accurately portray
the liability associated with employee leave balances by taking into account the likelihood that
these leave balances will be used or converted to cash for employees. For fiscal year 2024-25, this
results in an increase to overall leave liability of $179,000.
Housing Loans and Fee Deferrals The City administers an extensive housing program for
workforce and low-income housing. Through the program, the City has extended loans and impact
fee deferrals to low-income housing developers such as the Housing Authority of San Luis Obispo,
Transitions Mental Health, and People’s Self-Help Housing (to name a few). The loans are long-
term in nature, include a modest interest rate, and will become due in future years. The loans are
disclosed in the City’s financial statements under the respective governmental funds as loans
receivable and restricted within fund balance. The loans are reflected in the financial statements
net of an allowance for any that are forgivable at the end of the term if certain affordability
provisions are maintained. Detailed information can be found in Note 4 – Loans Receivables.
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Management’s Discussion and Analysis
Fair Value Adjustments The City follows the practice of pooling cash and investments for all
funds under its direct daily control. Interest earned on pooled cash and investments is allocated
quarterly to the various funds based on the respective funds’ average quarterly cash balance.
Investments are stated at fair value, based on quoted market prices in accordance with GASB
standards and are adjusted to reflect any unrealized gains and losses resulting from the fair value
adjustment annually. The City’s investments and effects of the fair value adjustment are reflected
in the Financial Statements under “Use of money and property” in all funds based on the City’s
mentioned practices. More information on the City’s investments can be found in Note 2 – Cash
& Investments.
The following outlines financial highlights for the year which are detailed in the table on page 9
of the Management Discussion and Analysis.
Per the Statement of Net Position, total City-wide assets increased by approximately $75
million to $1,020 million representing an increase of 8%. The assets and deferred outflows of
resources of the City exceeded liabilities and deferred inflows at June 30, 2025 by $585 million
(net position). Cash and investment and receivable balances remained consistent with the prior
year ending at $251 million and $54.2 million citywide, respectively. Capital assets increased
from $591 million to $649 million as a result of major investments in large projects including
construction on the new Cultural Arts District Parking Structure, upgrades to the Water
Resource Recovery Facility, and the purchase of 6 new transit buses. Meanwhile, overall
liabilities increased slightly from $436.9 million to $445 million due to increases to long-term
debt offset by decreases to OPEB and pension liabilities.
The City’s net pension liability, comprised of a one agent multiple-employer plan for its
miscellaneous employees and one cost-sharing multiple-employer plan for its safety
employees amounted to $178 million by the end of fiscal year 2024-25. The City’s
Miscellaneous plan decreased by $989,000 to end the year at $93.8 million. Meanwhile, the
City’s Safety plan also decreased by $2.1 million to end the year at $84.2 million. Together
this represents an overall decrease of 1.7% for overall net pension liability year over year.
In governmental activities, cash and investments increased by $20.4 million to $124.7 million
due to delays in design and construction of capital projects as well as grant reimbursements for
expenditures incurred in prior years. Meanwhile, prepaid items, representing cash outflows
occurring in the current year for next year’s expenditures, increased from $182,000 to
$712,520 due to prepaid health insurance premiums of $684,000 recorded at June 30, 2025.
Receivables from various sources increase by just over $4.4 million to $40.9 million due to the
timing of certain receivables owed to the City as of June 30, 2025 including outstanding
receivables from the San Luis Obispo County of Governments for $1.6 million, the County of
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Management’s Discussion and Analysis
San Luis Obispo for $1.4 million, the State Department of Water and Resources for $480,000,
and Cal Fire SLO for $450,000.
In business-type activities, total assets increased from $557 million to 595 million. This was
mainly attributable to increases in construction in progress and depreciable capitalized assets
in fiscal year 2024-25.
The City’s governmental funds reported combined ending fund balances of $148.6 million as
of June 30, 2025 representing a 21% increase from the prior year. Approximately $44.2 million
of this total is either nonspendable or restricted for transportation projects or specific programs
such as affordable housing, parkland development, public art, tourism, public safety, or
infrastructure improvement programs. Another $20.4 million is committed for purposes such
as general government programs, risk management, general contingency reserves, and public
safety programs. Committed fund balances represent the amount of money that is subject to
constraints imposed by the City Council. It takes formal action by the City Council to utilize
these funds for their specific purposes.
A further $80.6 million is assigned for total governmental funds and intended to be used for
specific purposes discussed in more detail later, and unspent appropriations that have been
rolled over into the 2025-26 fiscal year in accordance with the City’s budget policies. Assigned
fund balances represent the amount of money that the City Council or management has
identified for specific future purposes, but do not meet the criteria to be restricted or committed.
Any appropriation of these amounts would require City Council approval. The remaining $3.4
million remains unassigned for governmental funds as of June 30, 2025.
The total General Fund balance increased by 14% from $45.3 million to $51.8 million. After
taking into account non-spendable amounts of $5.5 million, committed funds of $19.9 million
including the current operating reserve, assigned fund balance of $22.3 million, and $3.4
million remains as unassigned balance on June 30, 2025, for the General Fund.
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Management’s Discussion and Analysis
Government-wide Overall Financial Analysis
Statement of Net Position Net position may serve over time as useful indicator of a
government’s financial position.
The following is the condensed statement of net position for the fiscal years ended June 30, 2024
and 2025.
For the fiscal year ending on June 30, 2025, the City’s combined total assets and deferred outflows
of resources were greater than its liabilities and deferred inflows of resources by $585.3 million.
The largest portion of the City’s net position reflects its investment in capital assets in the amount
of $441.7 million (e.g., land, buildings, infrastructure, machinery, and equipment), less any related
outstanding debt used to acquire those assets. The City uses these capital assets to provide services
to citizens; consequently, these assets are not available for future spending. Although the City’s
investment in its capital assets is reported net of related debt, it should be noted that the resources
needed to repay this debt must be provided from other sources, since the capital assets themselves
cannot be used to liquidate these liabilities.
Approximately $45.4 million of the City’s net position is subject to restrictions imposed by
external parties and its use is determined by those restrictions and contractual obligations. The
governmental and business-type activities each contributed $34.0 million and $26.0 million
respectively to the combined net position increase of $60.0 million resulting in a total net position
of $585.3 million on June 30, 2025.
2024-25 2023-24 2024-25 2023-24 2024-25 2023-24
Current and other assets 167,584,241$ 141,746,727$ 203,574,019$ 210,942,153$ 371,158,260$ 352,688,880$
Capital assets 256,946,258 245,583,137 391,653,070 345,734,319 648,599,328 591,317,456
Total assets 424,530,499 387,329,864 595,227,089 556,676,472 1,019,757,588 944,006,336
Total Deferred
Outflows of Resources 45,607,769 55,962,004 8,340,424 9,049,028 53,948,193 65,011,032
Current liabilities 15,809,183 15,670,923 26,800,043 25,540,111 42,609,226 41,211,034
Noncurrent liabilities 163,680,034 168,325,263 238,744,246 227,365,761 402,424,280 395,691,024
Total liabilities 179,489,217 183,996,186 265,544,289 252,905,872 445,033,506 436,902,058
Total Deferred
Inflows of Resources 6,869,661 9,499,175 36,501,859 37,289,442 43,371,520 46,788,617
Net position:
Net investment in
capital assets 241,392,407 228,447,288 200,340,066 183,458,877 441,732,473 411,906,165
Restricted 38,939,635 36,650,877 6,470,313 10,976,119 45,409,948 47,626,996
Unrestricted 3,447,348 (15,301,658) 94,710,986 81,095,190 98,158,334 65,793,532
Total Net Position 283,779,390$ 249,796,507$ 301,521,365$ 275,530,186$ 585,300,755$ 525,326,693$
CONDENSED STATEMENT OF NET POSITION
Governmental Activities Business-Type Activities Total
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Management’s Discussion and Analysis
Information about changes in net position for fiscal years 2024-25 and 2023-24 is summarized
below. Reasons for the changes are discussed in the following sections for governmental
activities and business-type activities.
Governmental Activities
The City’s net position in Governmental activities increased by $34 million to $283.8 million on
June 30, 2025 which is similar to FY 2023-24 in which it increased by $30.7 million. Most sources
of taxes remained consistent with the prior year, increasing just $261,000 versus the prior year as
a result of macroeconomic conditions that have slowed revenue growth. However, despite this
slowing of revenues, they still covered the overall program expenses which came in at $114.6
million representing a $2.1 million decrease over the prior year. The main reasons for this in part
were the deliberate reductions in spending in response to changes in forecasted revenue trends that
prompted the activation of the Fiscal Health Contingency Plan (FHCP) in April 2025 and salary
savings due to vacancies, though the activation of the FHCP occurred late into the fiscal year and
had minimal impact.
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Management’s Discussion and Analysis
Governmental Revenues. Revenues are divided into charges for services and general revenues
including applicable taxes as listed in the table below. General revenues are used to pay costs of
providing program services such as public safety, parks and open space, streetlights and traffic
signals, recreation opportunities, as well as economic development, and environmental
sustainability. Charges for services are revenues directly related to service activity while operating
and capital grants and contributions, and related investment earnings are a mechanism of cost
recovery.
As mentioned previously, total governmental revenues were consistent with the prior year,
increasing by just $261,000 and reflecting an overall slowing of recent revenue growth. Almost all
sources of tax revenues such as sales taxes, property taxes, and TOT were within 7% of prior year
totals with the exception of Utility User taxes which exceeded year over year amounts by 19% or
$1.2 million. This is mainly due to the volatility in this revenue stream that is based on both market
price and consumer utilization of utilities. Overall, these increases outpaced the decrease in
operating grant revenue which was higher in the prior year versus historic trends due to the timing
of awarded funding including American Rescue Plan Act (ARPA) funding received in the prior
year as well as funding for several affordable housing projects, and several community
development block grants received from the US Department of Housing and Urban Development.
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Top Governmental Activity Revenue Sources. As shown in the chart below, the City’s top five
tax revenues accounted for 67% or $97.3 million of total revenues, with service charges accounting
for another 14% or $20.1 million and remaining revenue including grant revenue, investment
income, and other miscellaneous revenues accounted for 19% or $27.7 million. Despite economic
volatility, most of the City’s main revenue sources performed well and above initial expectations.
The following chart compares program fee revenues and expenses which is useful when reviewing
the costs of various governmental activities:
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Financial Analysis of Governmental Funds
The focus of the City’s governmental funds is on near-term inflows, outflows and balances of
spendable resources. Such information is useful in assessing the City’s financing requirements and
meeting finance-related legal requirements. In particular, unassigned fund balance serves as a
useful measure of a government’s net resources available for spending at the end of the fiscal year.
Major Governmental Funds. In fiscal year 2024-25 the City maintained two major governmental
funds: the General Fund and the Capital Outlay Fund. The City’s General Fund is the principal
operating fund and reports all revenue and expenditures not required to be in a separate fund,
including Local Revenue Measure funding. It finances the day-to-day activities of the City. The
Capital Outlay Fund is used to account for the acquisition or construction of major capital facilities.
Changes in both are highlighted in the Financial Highlights section below.
Non-Major Governmental Funds. The City has numerous non-major governmental funds
including the Debt Service Fund and various Special Revenue Funds or Capital Projects Funds.
These funds are presented in the basic financial statements in the aggregate. A significant number
of these funds represent activity for capital projects. On June 30, 2025, these funds had an
aggregate fund balance of $64.1 million. Of this total, $38.6 million is restricted or committed for
payment of debt service or specific governmental programs such as transportation, affordable
housing, and impact fee or parkland development programs.
Governmental Fund Highlights
As of June 30, 2025, the City’s governmental funds reported combined ending balances of $148.6
million or an increase of 21% compared to the prior fiscal year. This was largely driven by stability
in tax revenue streams, despite slowing growth trends and macroeconomic conditions, as well as
very favorable investment income. This was further supported by department expenditures which
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all finished the year under budget as well as staffing vacancies that occurred throughout the year.
The total fund balance of the governmental funds consists of the following:
o Non-spendable fund balance represents prepaid items or items that by their nature
are not in a spendable form. $5,533,017 was held in non-spendable at fiscal year-
end in the General Fund including an interfund loan between the General Fund and
the Parking Fund in the amount of $4.7 million to finance the purchase of property
located at 1166 Higuera Street and prepaid insurance premiums.
o Restricted fund balance of $38.7 million, including $10.4 million for affordable
housing programs, $7.9 million for transportation related projects, $1.6 million for
tourism programs, and $1.6 million for public art programs. These restricted fund
balances were held entirely within non-major governmental funds.
o Committed fund balance amounted to $20.4 million accounting for the City’s
reserve funds as prescribed by its Fund Balance and Reserve policies with $19.9
million held by the General fund and $509,000 held by non-major governmental
funds.
o Assigned fund balance of $80.6 million includes the amounts to be used for specific
purposes of the City but do not meet the criteria to be classified as restricted or
committed. Funds in this category include funds to be used for Development
Services, purchase orders and encumbrances that have been rolled over into fiscal
year 2025-26 in accordance with the City’s budget policies, an additional
discretionary payment to CalPERS, the section 115 Trust Fund, and solid waste
funds collected through AB939. The City also established a Revenue Stabilization
Reserve in fiscal year 2021-22 of $2 million to help insulate or smooth out budget
impacts from large fluctuations in tax revenue. The largest portion of the assigned
fund balance, approximately $59.9 million represents outstanding encumbrances
and capital projects at year end to be carried forward into the next fiscal year.
o Unassigned fund balance at year end was $3.4 million for the General fund and
($46,000) for the non-major governmental funds. The City’s capital outlay fund did
not have any unassigned amounts at June 30, 2025. The use of the unassigned fund
balance will be prioritized based on City Council direction and City policy.
More information about the aggregated non-major funds can be found in the combining and
individual fund statements and schedules immediately following the required supplementary
information.
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Financial Analysis of Enterprise Funds
The City’s business-type activities are financed through rates for services and should be self-
sufficient in covering their expenses with their sales and services revenue. Also called proprietary
funds, the City has four such entities: Water, Sewer, Parking, and Transit.
Water Fund
The City’s Water Fund is a business-type activity and is funded predominately through rates to
provide service. The City treats and delivers water to the public from three surface reservoirs as
well as recycled water for landscape irrigation. The water service is provided to all property owners
in the City including parks and sports fields.
The net position of the Water Fund rose by over $8.8 million during fiscal year 2024-25 ending
the year at $118.8 million, an increase of 8% over the prior year. Supporting the upward trend
were operating revenues that came in $3 million higher and represent an increase of 9% over the
2024-25 2023-24 2024-25 2023-24 2024-25 2023-24 2024-25 2023-24
Operating revenues 34,356,427$ 31,394,962$ 24,096,372$ 23,302,912$ 8,307,559$ 9,663,683$ 990,738$ 1,003,116$
Operating expenses 27,485,998 25,043,587 14,252,243 17,754,034 6,373,905 6,615,881 6,358,316 5,352,380
Operating income (loss)6,870,429$ 6,351,375$ 9,844,129$ 5,548,878$ 1,933,654$ 3,047,802$ (5,367,578)$ (4,349,264)$
Nonoperating revenues 3,395,754$ 2,122,301$ 1,175,449$ (1,549,560)$ 232,820$ 1,237,070$ 6,499,829$ 5,471,995$
Capital Contributions - (1,387,992) (1,075,110) (1,451,616) (1,192,689) (375,212) (368,233) 4,712,879 -
Changes in net position 8,878,191$ 7,398,566$ 9,567,962$ 2,806,629$ 1,791,262$ 3,916,639$ 5,845,130$ 1,122,731$
Net position - beginning of year 109,961,981$ 102,563,415$ 122,333,448$ 119,526,819$ 34,133,265$ 30,216,626$ 9,101,492$ 7,978,761$
Prior year restatement (5,032) (5,561) (80,773) -
Net position - end of year 118,835,140$ 109,961,981$ 131,895,849$ 122,333,448$ 35,843,754$ 34,133,265$ 14,946,622$ 9,101,492$
Summary of Revenues, Expenses, and Changes in Enterprise Fund Net Position
Water Sewer TransitParking
2024-25 2023-24
Operating revenues 34,356,427$ 31,394,962$
Operating expenses 27,485,998 25,043,587
Operating income (loss)6,870,429$ 6,351,375$
erating revenues (expenses) 3,395,754$ 2,122,301$
Contributions - Transfers out (1,387,992) (1,075,110)
Changes in net position 8,878,191$ 7,398,566$
Net position - beginning of year 109,961,981$ 102,563,415$
Prior year restatement (5,032)
Net position - end of year 118,835,140$ 109,961,981$
Water Fund
Summary of Revenues, Expenses, and Changes in
Enterprise Fund Net Position
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prior year. This was mainly due to the increases in demand as well as increases in Council adopted
water rates for fiscal year 2024-25. Meanwhile, impact fee revenues and other operating revenues
deviated little from the prior year amounts coming in at $4.8 million and $227,000 respectively.
Non-operating revenues, however, increased significantly more than the prior year, and amounted
to $3.4 million. This represents an increase of $1.3 million or 60% and was mainly the result of a
$762,000 increase in grant revenue over the prior year primarily from Proposition 1 and CalOES
programs. In addition, the Fund benefited from more favorable investment income which came in
$693,000 higher in fiscal year 2024-25. The increases in revenue outpaced the $2.4 million
increase in year over year operating expenses which are comprised of salaries and benefits,
supplies and maintenance, contract services, administration, and depreciation. Of these, contract
services was the main driver in the overall increase in operating expenses and included the City’s
contribution to repairing the Nacimiento reservoir because of the 2023 winter storms.
Sewer Fund
The City’s Sewer Fund is also a business-type activity that funds, operates, and maintains the
City’s sanitary sewer system and the Water Resource Recovery Facility (WRRF). An efficient
sanitary sewer system that collects and treats wastewater provides a foundation for public health
and community well-being. Rates and charges are the primary source of revenue for this fund.
The Sewer Fund’s net position rose by $9.6 million, ending fiscal year 2024-25 at $131.9 million,
an increase of 8% over the prior fiscal year. By comparison, the previous year’s change in net
position was just $2.8 million. The overall increase was driven by the net effect of a $4.3 million
more favorable operating income and positive net nonoperating revenues and expenses. Within
2024-25 2023-24
Operating revenues 24,096,372$ 23,302,912$
Operating expenses 14,252,243 17,754,034
Operating income (loss)9,844,129$ 5,548,878$
Nonoperating revenues (expenses) 1,175,449$ (1,549,560)$
Capital Contributions - Transfers out (1,451,616) (1,192,689)
Changes in net position 9,567,962$ 2,806,629$
Net position - beginning of year 122,333,448$ 119,526,819$
Prior year restatement (5,561)
Net position - end of year 131,895,849$ 122,333,448$
Summary of Revenues, Expenses, and Changes in
Enterprise Fund Net Position
Sewer Fund
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operating revenues, modest growth in charges for sales and services, up $1 million, or 5%, was
partly offset by minor decreases in total impact fee revenues. Other sources of operating income
remained consistent with the prior fiscal year.
Operating expenses were significantly lower in fiscal year 2024-25, decreasing by $3.5 million or
20% compared to the prior year. The primary driver of this reduction was lower contract services
costs, while other major expense categories remained relatively stable. Contract services totaled
$1.8 million in fiscal year 2024-25, compared to $4.7 million in the prior year, making them the
main contributor to the more favorable operating income. This decrease was largely due to the
timing of costs associated with major construction projects, including upgrades to the WRRF.
Nonoperating revenues were also positive due to stronger investment earnings and significantly
lower interest expense, $2.5 million in fiscal year 2024-25, down from $5.1 million in the prior
year. The reduction in interest expense resulted from the City having recorded capitalized interest
in the prior year related to the 2018 Clean Water State Revolving Fund loan used for the
construction of the WRRF.
Parking Fund
The Parking Services program operates and maintains the City’s surface parking lots, on-street
metered spaces, parking structures, residential permit parking districts, and timed parking areas
throughout the city with a focus on the downtown area and residential neighborhoods.
Parking Fund operating revenues decreased from $9.7 million in the prior year to $8.3 million in
fiscal year 2024-25 as a result of several factors including: reduced parking rates, unexpected
failures in parking structure technology systems that affected revenue collection in the first half of
the year, and a decrease in citation revenue due to issues with the previous citation management
vendor.
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Operating expenses were consistent with the prior year coming in at $6.4 million compared with
$6.6 million in fiscal year 2023-24. This small decrease was driven by salary savings due to several
vacancies throughout the year as well as some savings in consulting services due to operational
adjustments, and efficiencies gained with digital communication and permit management.
Nonoperating revenues were down year over year and came in at $232,800 as the result of a
correction to lease revenue accounting and less investment related earnings realized as a result of
cash needed to fund ongoing investment in capital projects such as the new Cultural Arts District
parking structure. As a result, the Parking Fund’s net position increased by 5% or $1.7 million to
end the fiscal year at $35.8 million.
Transit Fund
SLO Transit provides reliable transit service for more than 660,000 passenger trips across eight
fixed routes, one tripper service, and one trolley service, supported by a fleet of 19 vehicles. In
fiscal year 2024-25, six new buses were added to the fleet and are expected to enter service by
Spring 2026.
During fiscal year 2024-25 the Transit Fund’s net position increased from $9.1 million to $14.9
million. While the Fund’s operating performance was consistent with the previous year, the
increase in overall fund balance was due to the timing of federal grant revenues recognized to fund
the replacement of diesel-powered buses with zero-emission models and to fund the expansion
buses needed to implement service enhancements identified as the highest priority
recommendation of the recent Transit Innovation Study. Grant revenue also included part of $12.1
2024-25 2023-24
Operating revenues 8,307,559$ 9,663,683$
Operating expenses 6,373,905 6,615,881
Operating income (loss)1,933,654$ 3,047,802$
erating revenues (expenses) 232,820$ 1,237,070$
Contributions - Transfers out (375,212) (368,233)
Changes in net position 1,791,262$ 3,916,639$
Net position - beginning of year 34,133,265$ 30,216,626$
Prior year restatement (80,773)
Net position - end of year 35,843,754$ 34,133,265$
Summary of Revenues, Expenses, and Changes in
Enterprise Fund Net Position
Parking Fund
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Management’s Discussion and Analysis
million awarded via the American Rescue Plan Act (ARPA) and allocated in fiscal years 2022-23
through 2024-25.
Operating revenue was consistent with the prior year totaling $991,000 and within $12,000 of the
prior year. Operating expenses were $1 million more than the prior year primarily as a result of
increases in contract services as well as increases in fuel, and electricity used for the expanding
electric bus fleet. Favorable investment earnings of $494,000 also boosted the performance of the
Fund and contributed to the ending net position of $14.9 million.
Combined Program Expenses and Revenue: Business-Type Activities. In fiscal year 2024-25,
the combined total revenues for business-type activities increased from $80.7 million to $89.2
million led by increases in service charges for fiscal year 2024-25 that were up by nearly $2.4
million from the prior year and making up $67.8 million of total revenues. This increase was
primarily driven by increases in the Water and Sewer Funds which saw increases of $3 million
and $793,000 respectively. Similar to the prior year, all enterprise funds experienced strong
investment income totaling $8.3 million and a favorable fair value adjustment at the end of fiscal
year 2024-25 totaling $1.7 million. Furthermore, overall grant revenues for business-type activities
was significantly higher in fiscal year 2024-25 versus the prior year, up from $6.8 million to $12.8
million. These factors contributed to all enterprise fund program revenues exceeding program
expenditures.
2024-25 2023-24
Operating revenues 990,738$ 1,003,116$
Operating expenses 6,358,316 5,352,380
Operating income (loss)(5,367,578)$ (4,349,264)$
erating revenues (expenses) 10,465,066$ 5,471,995$
Contributions - Transfers out 747,642 -
Changes in net position 5,845,130$ 1,122,731$
Net position - beginning of year 9,101,492$ 7,978,761$
Net position - end of year 14,946,622$ 9,101,492$
Transit Fund
Summary of Revenues, Expenses, and Changes in
Enterprise Fund Net Position
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As seen below, program revenue exceeded program expenses for all of the City’s Enterprise Funds
with the Water and Sewer Funds performing the strongest. This was largely driven by investment
earnings, which remained strong during the fiscal year. These earnings are unpredictable and
outside of the City’s control and should not be relied upon as an ongoing source of funding for the
programs.
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General Fund Budgetary Highlights
A detailed budgetary comparison schedule for the year ended June 30, 2025, is presented as
required supplementary information following the notes to the financial statements. The final
budget amounts include changes that were approved by the City Council through June 30, 2025.
The following summarizes the original General Fund budget compared with the adjusted final
budget for fiscal year 2024-25. The adjusted final budget includes Council approved adjustments
as well as administrative budget adjustments in accordance with the City’s adopted fiscal policies
and procedures.
As discussed below, differences between the original budget and the final amended budget reflect
the following key changes:
Revenue budgets were increased by $9 million from $118.6 million to $127.7 million and
reflect the addition of FEMA reimbursements which were initially forecasted but not
budgeted.
Overall expenditure budgets were also increased by approximately $5.4 million for the
General Fund due to carryover of funding for contracts and commitments from the prior
fiscal year. Significant differences between the original and final expenditure budgets
include increases in anticipated Public Safety and General Government programs.
Net Other sources (uses) are comprised of transfers in or out and were originally budgeted
at $22.6 million and revised to $28.5 million in the final budget. Transfers may be used to
provide resources from the General Fund to other funds such as the Capital Outlay Fund
or other non-major governmental funds.
General Fund 2024-25
Ori ginal Budget
2024-25
Final Budget
Positive (Negative)
Variance
Revenues 118,611,840$ 127,728,819$ 9,116,979$
Expenditures 93,826,330 99,228,674 (5,402,344)$
Other sources (uses)(22,612,412) (28,487,384) (5,874,972)$
Beginning fund balance 45,329,766 45,329,766 -$
Ending fund balance 47,502,864$ 45,342,527$ (2,160,337)$
General Fund Budgetary Highlights
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The following table compares the actual results for revenues, expenditures, and fund balance with
the final budget for the General Fund. As the table shows, revenues were within $814,000 of their
budget amounts. While there was some variability between budgeted revenue streams and actual
results for the fiscal year 2024-25, overall tax revenues were within 1% of budget and user fees
were within 2%, transient occupancy tax of 8%. Furthermore, favorable investment earnings
counter balanced the shortcomings with budgeted 2023 storm reimbursements as the City received
just $909,090 versus $8.7 million.
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Detail for the Local Revenue Measure
The City’s Local Revenue Measure (one and a half percent transaction tax) is a component of the
General Fund. The activities reflected in the Financial Statements of this report are provided for
information regarding the use of the Measure’s revenue according to the community’s priorities
and the recommendation of the Revenue Enhancement Oversight Commission, a City Council
advisory body, overseeing the allocations. For fiscal year 2024-25, the following revenues and
expenditures were recorded:
Capital Assets and Debt Administration
Capital Assets. Capital assets, including infrastructure, are those assets that are used in the
performance of the City’s functions. As of June 30, 2025, the City’s investment in capital assets
for its governmental and business type activities increased to $648.6 million (net of accumulated
depreciation). The investment in capital assets includes things such as open space, park
improvements, buildings and associated improvements, vehicles and equipment, streets, bikeways,
water, wastewater, and storm drain systems.
Revenues
Local Transaction and Use Tax 30,926,285$
30,926,285$
Expenditure Allocations by Priority
Address Homelessness 907,987$
Community Safety and Emergency Preparedness 6,625,118
Creek and Flood Protection 1,718,128
Economic Development and Business Retention 200,000
Open Space/Natural Areas Preservation and Maintenance 1,555,889
Other Services and Projects 3,342,390
Protect Financial Stability 1,178,100
Safe and Clean Public Areas 1,889,662
Street Maintenance and Transportation (incl bike and ped improvements) 9,150,627
Youth/Senior Services and Recreation Facilities 5,287,099
31,855,000$
Net Change in Fund Balance (928,715)$
Fund Balance Beginning of Year 1,776,826
Fund Balance End of Year 848,111$
For the Fiscal Year Ended June 30, 2025
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Major capital asset2 expenditures during the fiscal year included the following:
$25.6 million for continued work on the Cultural Arts District Parking Structure
$9.7 million for continued work on the Water Resource Recovery Facility upgrade projects
$6.1 million for purchase of 6 new electric buses
$5.8 million for continued work on the Mid-Higuera Bypass
$3.1 million for continued work on the Johnson Waterline Replacement project
$2.8 million for roadway sealing throughout the City
$1.8 million for the completion of the Laguna Lake Dog Park
$1.7 million for new water distribution meters and boxes
$1.6 million for continued work on the Sierra Way Sewer Replacement project
Long-Term Debt. As of June 30, 2025, the City’s long-term debt increased by $11.1 million
to $224.9 million outstanding. The modest increase reflects additional draw downs on the 2018
Clean Water State Revolving Fund loan used to finance improvements at the Water Resource
Recovery Facility, offset by routine principal payments on other outstanding debt. In addition,
the City recognized a total of $75,000 in subscription-based IT arrangements (SBITAs) in
accordance with the implementation of GASB 96 and $276,000 in leases in accordance with
GASB 87.
The California Government Code provides for a limit on debt secured by real property of 3.75%
based on market value. The City’s debt management policy, however, sets a lower debt limit of
2% of assessed valuation. As of June 30, 2025, 2% of the assessed valuation was $260 million3.
2 Additional information on the City’s capital assets can be found in Note 5 on page 103 to the basic
financial statements.
3 Based on the San Luis Obispo County Assessor’s 2024-25 Annual Valuation report
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As of June 30, 2025, the City did not have any general obligation debt subject to the limit.
Additional information about the City’s long-term debt can be found in Note 7 to the basic financial
statements.
Economic Factors and Next Year’s Budget and Rates
The City’s 2025-27 Financial Plan reflects the current economic realities, and significant input
from the community, advisory bodies, and the City Council. The two-year budget reflects a time
of transition with revenue growth projected to slow amidst rising costs of goods and services.
There is also growing uncertainty resulting from a rapid shift in national economic policy via
tariffs, and potential significant state and federal budget cuts.
In recent years, the City experienced strong revenue growth in recent years due to post-COVID
economic recovery, voter approval of the Local Revenue Measure (LRM) in 2020, and a surge in
development activity. These factors boosted sales tax, transient occupancy tax (TOT), and
development-related revenues, allowing the City to fund capital projects and expand services.
However, this growth has slowed significantly. Inflation and high interest rates have cooled
consumer spending and reduced development activity. As a result, the City now faces:
Flattening sales tax revenues – including LRM receipts trending at least $2.4 million below
last year’s forecast
Falling development revenues – down about $600,000 in fiscal year 2024-25, which is
expected to persist in future years due to a decrease in the high volume of development
activity compared to prior years
Rising costs -- for personnel, construction materials, insurance, utilities, and labor
Ongoing inflationary pressures – affecting spending and project costs
To manage these challenges, the City activated its Fiscal Health Contingency Plan (FHCP) in April
of 2025, instituting a hiring and travel chill to control expenditures while maintaining flexibility
to address a structural deficit projected in fiscal year 2025-26 as well a future budget years.
Although the two-year Financial Plan is balanced, long term projections show structural deficits
to continue with a $3 million deficit in fiscal year 2027-28 and $2 million in fiscal year 2028-29
primarily due to the cost of opening a fifth fire station and continued slow revenue growth.
The City adopted the fiscal year 2025-27 Financial Plan in June of 2025 which included a budget
of approximately $217.6 million for fiscal year 2025-26. The new plan will guide the City through
June 2027 and focuses on key priorities identified through community engagement, such as
addressing homelessness, housing insecurity, public safety, sustainable transportation, and climate
action.
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Water Rates. The Council adopted 5.5% increases to the current rates each fiscal year on July 1,
2025, and on July 1, 2026. These changes are driven primarily by the rising costs of operating and
maintaining the City’s water system, as well as critical capital improvement projects. These
updates also reflect regulatory compliance expenses, including ongoing water quality and
environmental standards, and inflationary impacts that have raised the cost of essential supplies
and services. Additionally, the water rate adjustments help fund ongoing improvements to the
water treatment system, the implementation of Advanced Metering Infrastructure (AMI), and
projects to maintain reliable, resilient service for the community’s current and future needs.
Sewer Rates. The Council adopted 6.5% increases to the current rates each fiscal year on July 1,
2025, and on July 1, 2026. These changes are needed to address growing costs of operations and
maintenance, capital renewal, and stringent environmental regulations. These rates support the
City’s efforts to meet evolving regulatory requirements, maintain critical infrastructure, and
replace aging facilities to ensure the continued safe and reliable treatment of wastewater. The
adjustments are essential to fund key upgrades, while also reducing reliance on debt for future
infrastructure needs.
The City adopts its water and sewer rates with the two-year Financial Plan and in accordance with
Proposition 218 requirements.
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2025-27 Water Rates
2025-27 Sewer Rates
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Parking Rates. Parking rate studies are typically conducted every two to five years to evaluate
parking operations and to address changing needs in the community. Following community
response to the rate increases that went into effect in July of 2023, the City began working closely
with a consultant in January of 2024 on a Parking Rate Study. The rate study recommended parking
rates and policy changes based on updated revenue forecast modeling and extensive community
feedback. This effort culminated in May 2024 with the City Council approving changes to make
parking more affordable for locals and visitors alike, while still enabling the Parking Fund to
remain financially sustainable. This included a 33% decrease in parking structure rates, 25%-31%
decreases for on-street parking rates, and a 47% decrease in monthly parking structure permit rates.
On-street downtown core parking time limits were also increased from 2 hours to 3 hours and there
was a 50% reduction in parking validation costs for businesses. The rate and policy changes went
into effect in July 2024. No future rate changes are planned at this time.
Requests for Additional Information
This financial report is designed to provide a general overview of the City’s finances for all those
interested. The City also prepares a Popular Annual Financial Report that can be found on the
City’s website under the Finance Department’s online documents. Questions concerning any of
the information provided in this report should be addressed to the Department of Finance, 990
Palm Street, San Luis Obispo, CA 93401.
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BASIC FINANCIAL STATEMENTS
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City of San Luis Obispo, California
Government-Wide Financial Statements
For the Fiscal Year Ended June 30, 2025
The government-wide financial statements are designed to provide readers with a broad overview of the City’s
finances, in a manner similar to a private-sector business.
The statement of net position presents information on all the City’s assets and deferred outflows,as well as
liabilities and deferred inflows, with the difference reported as net position.Over time,increases or decreases in net
position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City’s net position changed during the current
fiscal year.All changes in net position are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows.Thus,all the current fiscal year’s revenues and expenses are
considered regardless of when cash is received or paid (e.g.,earned but unused vacation leave or uncollected taxes).
Government-wide financial statements distinguish City governmental activities that are principally supported by
taxes and intergovernmental revenues from other business-type activities that are intended to recover all or a
significant portion of their costs through user fees and charges.Governmental activities include public safety,
transportation,community development,leisure,cultural and social services,and general government.Business-
type activities include water, wastewater, parking, and transit.
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Governmental
Activities
Business-Type
Activities Total
Assets
Current assets:
Cash and investments 124,667,748$ 126,788,389$ 251,456,137$
Taxes receivable 12,887,286 - 12,887,286
Accounts receivable 5,517,510 14,320,683 19,838,193
Accrued interest receivable 4,751,965 1,447,357 6,199,322
Internal balances 4,845,000 (4,845,000) -
Prepaid items and other assets 712,520 - 712,520
Lease receivables 110,528 122,794 233,322
Total current assets 153,492,557 137,834,223 291,326,780
Noncurrent assets:
Cash and investments held by fiscal agent 594,469 22,180,922 22,775,391
Investment in joint venture - 3,990,064 3,990,064
Lease receivables 741,527 37,293,723 38,035,250
Loans receivable 12,755,688 2,275,087 15,030,775
Nondepreciable capital assets 57,133,759 231,759,572 288,893,331
Depreciable capital assets (net of accumulated
depreciation) 199,812,499 159,893,498 359,705,997
Total noncurrent assets 271,037,942 457,392,866 713,400,033
Total assets 424,530,499 595,227,089 1,004,726,813
Deferred Outflows of Resources
Other post-employment benefits related 1,656,166 840,675 2,496,841
Pension related 43,788,115 7,368,672 51,156,787
Unamortized loss on refunding of debt 163,488 131,077 294,565
Total deferred outflows of resources 45,607,769 8,340,424 53,948,193
Liabilities
Current liabilities:
Accounts payable 6,153,646 7,264,713 13,418,359
Accrued salaries 2,140,573 425,323 2,565,896
Unearned revenue 2,838,476 10,058,588 12,897,064
Interest payable 68,632 1,495,526 1,564,158
Other liabilities 103 - 103
Compensated absence - due within one year 3,269,019 612,256 3,881,275
Long-term debt - due within one year 1,338,734 6,943,637 8,282,371
Total current liabilities 15,809,183 26,800,043 42,609,226
Noncurrent liabilities:
Compensated absence - due in more than on year 1,401,008 262,395 1,663,403
Long-term debt - due in more than one year 14,378,605 206,681,366 221,059,971
Net OPEB liability 923,913 781,794 1,705,707
Net pension liability 146,976,508 31,018,691 177,995,199
Total noncurrent liabilities 163,680,034 238,744,246 402,424,280
Total liabilities 179,489,217 265,544,289 445,033,506
Deferred Inflows of Resources
Other post-employment benefits related 1,757,000 757,748 2,514,748
Pension related 4,357,953 - 4,357,953
Lease related 754,708 35,744,111 36,498,819
Total deferred inflows of resources 6,869,661 36,501,859 43,371,520
Net Position
Net investment in capital assets 241,392,407 200,340,066 441,732,473
Restricted
Debt service - 4,956,584 4,956,584
Risk management 594,469 - 594,469
Transportation projects 7,885,873 1,513,729 9,399,602
Affordable housing programs 10,394,877 - 10,394,877
Impact fee programs 14,891,812 - 14,891,812
Parkland development programs 599,240 - 599,240
Public art programs 1,557,871 - 1,557,871
Tourism programs 1,631,304 - 1,631,304
Public safety programs 671,669 - 671,669
Claims 712,520 - 712,520
Unrestricted 3,447,348 94,710,986 83,127,559
Total net position 283,779,390$ 301,521,365$ 570,269,980$
City of San Luis Obispo, California
Statement of Net Position
June 30, 2025
The accompanying notes are an integral part of these financial statements.
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City of San Luis Obispo, California
Statement of Activities
For the Fiscal Year Ended June 30, 2025
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Governmental
Activities
Business-type
Activities Total
Governmental activities:
Public safety 47,552,699$ 4,272,202$ 850,914$ -$ (42,429,583)$ -$(42,429,583)$
Transportation 12,159,073 438,239 2,824,709 4,900,942 (3,995,183) -(3,995,183)
Leisure, culture and social services 13,669,496 5,298,964 103,402 - (8,267,130)-(8,267,130)
Community development 16,190,977 9,135,208 205,922 - (6,849,847)-(6,849,847)
General government 20,980,453 930,439 2,378,189 685,867 (16,985,958) -(16,985,958)
Interest on long-term debt 569,642 --- (569,642)-(569,642)
Total governmental activities 114,551,739 20,075,052 6,363,136 5,586,809 (82,526,742) -(82,526,742)
Business-type activities:
Water 28,092,545 34,356,427 1,514,125 - - 7,778,007 7,778,007
Sewer 16,792,057 24,096,372 530,085 - - 7,834,400 7,834,400
Parking 8,617,493 8,307,559 5,000 - - (304,934) (304,934)
Transit 6,358,316 990,738 6,005,376 4,712,879 - 5,350,677 5,350,677
Total business-type activities 59,860,411 67,751,096 8,054,586 4,712,879 - 20,658,150 20,658,150
Total primary government 174,412,150$ 87,826,148$ 14,417,722$ 10,299,688$ (82,526,742) 20,658,150 (61,868,592)
General revenues and transfers:
General sales and use taxes 22,911,086 -22,911,086
Transaction and use tax - Local Revenue Measure 30,926,285 -30,926,285
Property tax (including real property transfer tax)17,240,694 -17,240,694
Transient occupancy tax (TOT)11,417,888 -11,417,888
Utility users tax 7,501,436 -7,501,436
Property tax-in-lieu of vehicle license fees 7,273,431 -7,273,431
Franchise taxes 2,622,351 -2,622,351
Business tax 3,138,272 -3,138,272
Cannabis Tax 814,502 - 814,502
Other taxes 1,025,936 -1,025,936
Total taxes 104,871,881 - 104,871,881
Unrestricted investment earnings 6,691,998 8,639,215 15,331,213
Other revenue 1,439,962 -1,439,962
Transfers 3,214,820 (3,214,820) -
Total general revenues and transfers 116,218,661 5,424,395 121,643,056
Change in net position 33,691,919 26,082,545 59,774,464
Net position, beginning of year 249,796,507 275,530,186 525,326,693
Restatements 290,964 (91,366) 199,598
Net position, beginning of year, as restated 250,087,471 275,438,820 525,526,291
Net position, end of year 283,779,390$ 301,521,365$ 585,300,755$
Program Revenues
Net Revenues (Expenses) and
Changes in Net Position
The accompanying notes are an integral part of these financial statements.66
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City of San Luis Obispo, California
Governmental Funds Financial Statements
For the Fiscal Year Ended June 30, 2025
Governmental funds are used to account for essentially the same functions reported as governmental activities in the
government-wide financial statements.However,unlike the government-wide financial statements,governmental
fund financial statements focus on near-term inflows and outflows of spendable resources,as well as on balances of
spendable resources available at the end of the fiscal year.Such information reflects financial resources available in
the near future to finance the City’s programs.
Major governmental funds are defined generally as having significant activities or balances in the current year.The
funds described below were determined to be Major Governmental Funds by the City for the current fiscal year.
Individual nonmajor funds may be found in the Supplementary section.
General Fund
The General Fund is used for all the general revenues of the City not specifically levied or collected for other City
funds,and the related expenditures.The major revenue sources for this Fund are property taxes,sales taxes,
franchise fees,business licenses,unrestricted revenues from the state,fines and forfeitures and interest income.
Expenditures are made for community development, public safety, public works, and other services.
Capital Outlay Fund
This fund was established to account for all of the City’s construction projects and capital purchases in excess of
$25,000 with the exception of those funded through non-major capital project funds and Enterprise Funds.Financing
is provided primarily through transfers in from the General Fund, and from State and Federal Grants.
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General
Capital Outlay
Fund
Other
Governmental
Funds
Total
Governmental
Funds
Assets
Cash and investment 36,237,450$ 34,180,695$ 54,249,603$ 124,667,748$
Taxes receivable 12,653,169 -234,117 12,887,286
Accounts receivable 3,125,189 2,022,667 312,969 5,460,825
Other receivables 56,685 --56,685
Due from other funds 43,089 -67,478 110,567
Accrued interest receivable 521,124 -4,230,841 4,751,965
Prepaid items 688,017 --688,017
Cash and investments held by fiscal agent 594,469 --594,469
Advances to other funds 4,845,000 --4,845,000
Loans receivable 261,715 -12,493,973 12,755,688
Lease receivable 852,055 --852,055
Total assets 59,877,962$ 36,203,362$ 71,588,981$ 167,670,305$
Liabilities, Deferred Inflows of Resources
and Fund Balance
Liabilities:
Accounts payable 2,229,479$ 3,490,304$ 433,863$6,153,646$
Accrued liabilities 2,134,384 -6,189 2,140,573
Due to other funds --110,567 110,567
Unearned revenue 2,479,303 -359,173 2,838,476
Other liabilities 103 --103
Total liabilities 6,843,269 3,490,304 909,792 11,243,365
Deferred Inflows of Resources:
Lease related 754,708 --754,708
Unavailable revenue 472,667 -6,564,666 7,037,333
Total deferred inflows of resources 1,227,375 -6,564,666 7,792,041
Fund balance:
Nonspendable 5,533,017 --5,533,017
Restricted for:
Risk management 594,469 --594,469
Transportation projects --7,885,873 7,885,873
Affordable housing programs --10,394,877 10,394,877
Impact fee programs --14,891,812 14,891,812
Parkland development programs --599,240 599,240
Public art programs --1,557,871 1,557,871
Tourism programs --1,631,304 1,631,304
Public safety program --671,669 671,669
Infrastructure improvement --491,596 491,596
Committed to:
General government programs 848,111 --848,111
Risk management 4,437,620 --4,437,620
Contingency fund 14,607,203 --14,607,203
Public safety program --508,976 508,976
Assigned to:
CalPERS pension payment 2,000,000 --2,000,000
Solid Waste AB939 270,825 --270,825
Establishment of Section 115 Trust 2,000,000 --2,000,000
Revenue stabilization 2,000,000 --2,000,000
Development services 145,136 --145,136
SLO Repertory Theater Grant 6,700,000 --6,700,000
608,000 --608,000
Storm Related costs 5,125,068 --5,125,068
Storm Related Reimbursements 909,090 --909,090
Contingency fund --900,000 900,000
Subsequent year expenditures 2,559,825 32,713,058 24,626,846 59,899,729
Unassigned 3,468,954 -(45,541)3,423,413
Total fund balance 51,807,318 32,713,058 64,114,523 148,634,899
Total liabilities, deferred inflows of resources
and fund balance 59,877,962$ 36,203,362$ 71,588,981$ 167,670,305$
City of San Luis Obispo, California
Balance Sheet
Governmental Funds
June 30, 2025
Tenant Improvement program/Economic
The accompanying notes are an integral part of these financial statements.
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Total fund balance - governmental funds 148,634,899$
Capital assets at estimated historical cost $ 395,590,521
Accumulated depreciation (138,644,263)
256,946,258
7,037,333
1,656,166
24,503
Lease revenue bonds 15,366,185$
Lease liabilities 276,445
SBITA liabilities 74,709
Compensated absences 4,670,027
Accrued interest payable 68,632
(20,455,998)
Net pension liability is not a current financial obligation and, therefore, is not reported
in the governmental funds. (146,976,508)
Net OPEB liability is not a current financial obligation and, therefore, is not reported
in the governmental funds. (923,913)
(1,757,000)
(4,357,953)
Total net position - governmental activities 283,779,390$
Long-term liabilities, including related interest payable, are not due and payable in the current period and
therefore are not reported in the funds.
Deferred inflow of resources, pension related, are not current assets or resources; and they are not due in the
current period and therefore are not reported in the governmental funds.
Deferred inflow of resources, OPEB related, are not current assets or resources; and they are not due in the
current period and therefore are not reported in the governmental funds.
City of San Luis Obispo, California
Reconciliation of the Governmental Funds Balance Sheet
to the Government-wide Statement of Net Position
June 30, 2025
Capital assets used in governmental activities are not financial resources and therefore are not reported in the
funds.
Other long-term assets are not available to pay for current period expenditures and therefore are not reported
in the governmental funds.
Deferred outflows of resources, pension related, are not current asset or resources; and they are not due in the
current period and therefore are not reported in the governmental funds.
Deferred outflows of resources, OPEB related, are not current asset or resources; and they are not due in the
current period and therefore are not reported in the governmental funds.
Deferred amounts related to the refunding of long-term debt were not current financial resources. Therefore,
they were not reported in the Governmental Funds Balance Sheet.
Unavailable revenue recorded in the fund financial statements resulting from activities in which revenues
were earned but funds were not available are reclassified as revenues in the Government-Wide Financial
Statements.
43,788,115
163,488
The accompanying notes are an integral part of these financial statements.
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General
Capital Outlay
Fund
Other
Governmental
Funds
Total
Governmental
Funds
Revenues:
22,911,086$ -$-$22,911,086$
30,926,285 --30,926,285
17,242,485 -539,453 17,781,938
11,417,888 --11,417,888
7,501,436 --7,501,436
7,196,670 --7,196,670
2,622,351 --2,622,351
3,138,272 --3,138,272
814,502 --814,502
484,692 --484,692
340,172 --340,172
4,892,409 -1,371,611 6,264,020
4,686,036 5,705,815 3,498,471 13,890,322
12,530,009 -5,800,980 18,330,989
210,336 3,949 758,651 972,936
Total revenues 126,914,629 5,709,764 11,969,166 144,593,559
Expenditures:
Current:
General government 17,533,059 79,705 -17,612,764
Public safety 43,444,267 69,859 463,337 43,977,463
Transportation 5,837,166 2,419,954 566,788 8,823,908
Leisure, cultural and social services 11,913,798 859,882 -12,773,680
Community development 13,097,593 -2,485,698 15,583,291
Debt service:
Principal 360,260 -1,098,975 1,459,235
Interest and fiscal charges 22,321 -634,814 657,135
Capital outlay:
Public safety -483,540 -483,540
Transportation -11,562,043 1,977,423 13,539,466
Leisure, cultural and social services -2,151,507 2,481,703 4,633,210
Community development -120,721 990,520 1,111,241
General government -1,034,588 615,364 1,649,952
Total expenditures 92,208,464 18,781,799 11,314,622 122,304,885
Revenues over (under) expenditures 34,706,165 (13,072,035) 654,544 22,288,674
(Continued)
City of San Luis Obispo, California
Statements of Revenues, Expenditures, and
Changes in Fund Balances
Governmental Funds
For the Fiscal Year Ended June 30, 2025
Sales and use tax - general
Transaction and use tax - Local
Revenue Measure
Property tax (including real property
transfer tax)
Transient occupancy tax
Utility users tax
Property tax in lieu of VLF
Franchise taxes
Business tax
Cannabis Tax
Miscellaneous
Real property transfer tax
Fines, forfeitures and penalties
Use of money and property
Subventions and grants
Charges for services
The accompanying notes are an integral part of these financial statements.
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Page 2
General
Capital Outlay
Fund
Other
Governmental
Funds
Total
Governmental
Funds
Other Financing Sources (Uses):
Transfers in 5,829,430$ 24,043,451$ 10,359,699$ 40,232,580$
Transfers out (34,058,043) -(2,959,717)(37,017,760)
Total other financing sources (uses)(28,228,613) 24,043,451 7,399,982 3,214,820
Net change in fund balance 6,477,552 10,971,416 8,054,526 25,503,494
Fund balance, beginning of year 45,329,766 21,741,642 55,769,033 122,840,441
Restatements --290,964 290,964
Fund balance, beginning of year, as restated 45,329,766 21,741,642 56,059,997 123,131,405
Fund balance, end of year 51,807,318$ 32,713,058$ 64,114,523$ 148,634,899$
City of San Luis Obispo, California
Statements of Revenues, Expenditures, and
Changes in Fund Balances
Governmental Funds
For the Fiscal Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements.
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Total net change in fund balance - governmental funds 25,503,494$
Expenditures for capital outlay - governmental funds $ 19,653,776
Depreciation expense (8,253,546)
11,400,230
loss on disposal of capital asset (37,109)
Repayments of long-term debt are recognized as expenditures in the governmental funds. In
the government-wide statements, repayments of long-term liabilities are reported as reductions
of liabilities. Expenditures for repayment of the principal portion of long-term debt were:1,498,337
The issuance of long-term debt provides current financial resources to governmental funds.
This transaction, however, has no effect on net position. Proceeds from the issuance of
bonds was:
(11,678)
Bond premiums are reported in the governmental funds when the bonds are issued, and are
capitalized and amortized in the statement of net position. The amount of bond premiums
capitalized during the current period was: 95,339
it is due. In the statement of activities, interest expense is recognized as the interest accrues,
regardless of when it is due. The difference between interest expense paid and interest
accrued was:4,073
Changes in actuarially determined claim liabilities for uninsured claims do not provide current
financial resources and are not reported in the governmental funds. (133,858)
governmental funds. In the statement of activities, compensated absences are measured
by the amounts earned. The difference between compensated absences paid and
compensated absences earned was:(220,079)
435,040
19,723,915
1,975,082
Pension expenses reported in the statement of activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental funds (25,830,941)
OPEB expenses reported in the statement of activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental funds (709,926)
Total change in net position - governmental activities 33,691,919$
Current year employer pension contributions are recorded as expenditures in the
governmental funds, however, these amounts are reported as a deferred outflow of
resources in the Government-Wide Statement of Net Position
Current year employer OPEB contributions are recorded as expenditures in the
governmental funds, however, these amounts are reported as a deferred outflow of
resources in the Government-Wide Statement of Net Position
Compensated absences are measured by the amounts paid during the period in the
Capital outlay net of depreciation expense and disposal.
Interest on long-term debt is recognized as an expenditure in the governmental funds when
Reconciliation of the Statement of Revenues,
Expenditures and Changes in Fund Balances of
Governmental Funds to the Statement of Activities
For the Fiscal Year Ended June 30, 2025
Deferred amounts related to the refunding of long-term debt were not current financial
resources. Therefore, they were not reported in the Governmental Funds Balance Sheet.
This amount is to be amortized over the life of the long-term debt. This amount is the
current year net amortization expense.
Revenues that are not considered to be available are reported as unavailable revenues in
the governmental funds, however, these amounts are recognized in the Government-Wide
Statement of Activities. This amount represents the change in unavailable revenues.
City of San Luis Obispo, California
The accompanying notes are an integral part of these financial statements.
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City of San Luis Obispo, California
Proprietary Funds Financial Statements
For the Fiscal Year Ended June 30, 2025
Proprietary funds account for City operations financed and operated in a manner like a private business enterprise.
The intent of the City is that the cost of providing goods and services be financed primarily through user charges.
Proprietary funds are generally used to account for services for which the City charges customers;either outside
customers or internal units/divisions of the City.Proprietary funds provide the same type of information as shown in
the government-wide financial statements,only in more detail.The only type of proprietary fund the City maintains
is enterprise funds.The Water,Sewer,Parking,and Transit Funds are presented as business-type activities in the
government-wide financial statements. The City considers all four of its enterprise funds to be major funds.
Water Fund
This fund accounts for the provision of water services to the residents of the City as well as some customers in the
County.All activities necessary to provide such services are accounted for in this fund,including,but not limited to,
administration, operations, maintenance, capital improvements and debt service.
Sewer Fund
This accounts for the provision of wastewater collection and treatment services to the residents of the City as well as
some customers in the County.All activities necessary to provide such services are accounted for in this fund,
including, but not limited to, administration, operations, maintenance, capital improvements and debt service.
Parking Fund
This fund accounts for activities related to the implementation of the Access and Parking Management Plan,
including the operation of municipal parking lots,parking structures,parking meters and residential parking districts.
All activities necessary to provide such services are accounted for in this fund,including,but not limited to,
administration, operations, maintenance, capital improvements and debt service.
Transit Fund
This fund accounts for the operation and maintenance of the City's transit system.Although user fees are not the
primary funding source for the operation of the system,the State of California and the Federal government,which
provide the major funding sources for the system,require that local transit systems be accounted for on an enterprise
fund basis.
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Water Sewer Parking Transit Totals
Assets
Current assets:
Cash and investment 43,651,887$ 71,130,287$ 4,397,096$ 7,609,119$ 126,788,389$
Accounts receivable 4,574,393 3,137,051 212,271 6,396,968 14,320,683
Lease Receivables - - 122,794 - 122,794
Accrued interest receivable 485,064 519,881 395,727 46,685 1,447,357
Total current assets 48,711,344 74,787,219 5,127,888 14,052,772 142,679,223
Noncurrent assets:
- 278 22,180,644 - 22,180,922
Investment in joint venture 3,990,064 - - - 3,990,064
Loan Receivables 1,476,342 798,745 - - 2,275,087
Lease Receivables - - 37,293,723 - 37,293,723
Capital assets:
Land 945,926 2,176,114 10,692,838 - 13,814,878
Infrastructure 123,669,277 104,623,921 29,448,102 110,972 257,852,272
Buildings and improvements 19,233,993 5,162,135 1,300,234 5,212,278 30,908,640
Equipment 7,675,457 7,686,278 2,247,057 13,205,125 30,813,917
Construction in progress 16,245,185 151,606,202 43,903,407 6,189,900 217,944,694
Total capital assets 167,769,838 271,254,650 87,591,638 24,718,275 551,334,401
Less accumulated depreciation (72,789,556) (58,626,291) (16,980,102) (11,285,382) (159,681,331)
Capital assets, net of
accumulated depreciation 94,980,282 212,628,359 70,611,536 13,432,893 391,653,070
Total noncurrent assets 100,446,688 213,427,382 130,085,903 13,432,893 457,392,866
Total assets 149,158,032 288,214,601 135,213,791 27,485,665 600,072,089
Deferred Outflows of Resources
Pension related 3,255,407 3,123,943 799,925 189,397 7,368,672
349,848 374,145 93,119 23,563 840,675
26,458 6,739 97,880 - 131,077
3,631,713 3,504,827 990,924 212,960 8,340,424
(Continued)
City of San Luis Obispo
Statement of Net Position
Business-Type Activities - Enterprise Funds
June 30, 2025
Total deferred outflow of
resources
Cash and investments held by
fiscal agent
Other post-employment benefits
related
Unamortized loss on refunding of
debt
Enterprise Funds
The accompanying notes are an integral part of these financial statements.
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Page 2
Water Sewer Parking Transit Totals
Liabilities
Current liabilities:
Accounts payable 352,945$ 1,917,054$ 3,215,340$ 1,779,374$ 7,264,713$
Accrued liabilities 170,096 153,050 67,362 34,815 425,323
Compensated absences 299,517 222,227 61,173 29,339 612,256
Unearned revenue ---10,058,588 10,058,588
Interest payable 52,888 1,196,800 245,838 -1,495,526
Current portion of long-term debt 1,178,367 4,413,319 1,351,951 -6,943,637
Total current liabilities 2,053,813 7,902,450 4,941,664 11,902,116 26,800,043
Noncurrent liabilities:
Compensated absences 128,365 95,239 26,217 12,574 262,395
Advances from other funds --4,845,000 -4,845,000
Lease revenue bonds 7,823,297 243,030 49,083,650 -57,149,977
Installment sale agreement -1,770,696 --1,770,696
State loan/note payable 9,551,515 136,002,520 2,206,658 -147,760,693
Net pension liability 13,703,752 13,150,349 3,367,315 797,275 31,018,691
369,792 338,045 52,002 21,955 781,794
Total noncurrent liabilities 31,576,721 151,599,879 59,580,842 831,804 243,589,246
Total liabilities 33,630,534 159,502,329 64,522,506 12,733,920 270,389,289
Deferred Inflows of Resources
324,071 321,250 94,344 18,083 757,748
Lease related --35,744,111 -35,744,111
324,071 321,250 35,838,455 18,083 36,501,859
Net Position
Net investment in capital assets 76,453,561 70,205,811 40,247,801 13,432,893 200,340,066
Restricted:
Debt service -4,956,584 --4,956,584
Transportation projects ---1,513,729 1,513,729
Unrestricted 42,381,579 56,733,454 (4,404,047)-94,710,986
Total net position 118,835,140$ 131,895,849$ 35,843,754$ 14,946,622$ 301,521,365$
Other post-employment benefits
related
Total deferred inflow of
resources
City of San Luis Obispo
Statement of Net Position
Business-Type Activities - Enterprise Funds
June 30, 2025
Enterprise Funds
Net other post-employment benefits
liability
The accompanying notes are an integral part of these financial statements.
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Water Sewer Parking Transit Total
Operating revenues:
Charges for sales and service 29,285,188$ 21,326,853$ 7,060,852$ 984,855$ 58,657,748$
Impact fees 4,843,919 2,729,023 --7,572,942
Fines and forfeitures --1,113,016 -1,113,016
Other revenues 227,320 40,496 133,691 5,883 407,390
Total operating revenues 34,356,427 24,096,372 8,307,559 990,738 67,751,096
Operating expenses:
Salaries and benefits 5,411,641 5,504,571 1,979,310 419,464 13,314,986
Supplies and maintenance 1,938,251 2,512,434 926,862 506,595 5,884,142
Contract services 15,207,402 1,759,643 1,478,877 4,496,486 22,942,408
General government 1,559,425 1,838,634 1,256,841 460,609 5,115,509
Depreciation 3,369,279 2,636,961 732,015 475,162 7,213,417
Total operating expenses 27,485,998 14,252,243 6,373,905 6,358,316 54,470,462
Operating income (loss)6,870,429 9,844,129 1,933,654 (5,367,578) 13,280,634
Nonoperating revenues (expenses)
Use of money and property 2,488,176 3,185,178 2,471,408 494,453 8,639,215
Grants 1,514,125 530,085 5,000 6,005,376 8,054,586
Interest expense and fiscal charges (606,547) (2,539,814) (2,243,588) -(5,389,949)
Total nonoperating revenues
(expenses)3,395,754 1,175,449 232,820 6,499,829 11,303,852
Income (loss) before transfers
and capital contributions 10,266,183 11,019,578 2,166,474 1,132,251 24,584,486
Capital Contributions 4,712,879 4,712,879
Transfers out (1,387,992) (1,451,616) (375,212) -(3,214,820)
Total transfers and capital contribution (1,387,992) (1,451,616) (375,212) 4,712,879 1,498,059
Change in net position 8,878,191 9,567,962 1,791,262 5,845,130 26,082,545
Net position, beginning of year 109,961,981 122,333,448 34,133,265 9,101,492 275,530,186
Restatements (5,032) (5,561) (80,773) -(91,366)
Net position, beginning of year,
as restated 109,956,949 122,327,887 34,052,492 9,101,492 275,438,820
Net position, end of year 118,835,140$131,895,849$35,843,754$ 14,946,622$ 301,521,365$
Enterprise Funds
City of San Luis Obispo, California
Statement of Revenues, Expenses, and Changes in Fund Net Assets
Business-Type Activities - Enterprise Funds
For the Fiscal Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements.
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Water Sewer Parking Transit Total
Cash flows from operating activities:
Cash received from customers 34,287,980$ 24,145,044$ 8,187,898$ 990,738$ 67,611,660$
(18,318,092) (6,097,402) (1,455,882) (3,863,241) (29,734,617)
(1,559,425) (1,838,634) (1,256,841) (460,609) (5,115,509)
(5,493,340) (5,563,157) (2,093,780) (392,618) (13,542,895)
Net cash provided by (used in)
operating activities 8,917,123 10,645,851 3,381,395 (3,725,730) 19,218,639
Operating grants received 1,514,125 530,085 5,000 3,597,791 5,647,001
Transfers to other funds (1,387,992) (1,451,616) (375,212) - (3,214,820)
126,133 (921,531) (370,212) 3,597,791 2,432,181
Cash flows from capital and related
financing activities:
(6,715,303) (13,648,663) (26,453,490) (6,314,708) (53,132,164)
Capital grants received - - - 4,712,879 4,712,879
SBITA payment paid (12,835) (12,835) - - (25,670)
Principal paid on debt financing (1,155,874) (4,286,106) (1,248,785) - (6,690,765)
Interest paid on debt financing (718,329) (2,397,661) (2,499,597) - (5,615,587)
Proceeds from issuance of debt - 19,479,561 - - 19,479,561
Net cash used in capital and
related financing activities (8,602,341) (865,704) (30,201,872) (1,601,829) (41,271,746)
Cash flows from investing activities:
Use of money and property 1,880,880 3,076,074 2,332,201 488,348 7,777,503
Net cash provided by
investing activities 1,880,880 3,076,074 2,332,201 488,348 7,777,503
2,321,795 11,934,690 (24,858,488) (1,241,420) (11,843,423)
41,330,092 59,195,875 51,436,228 8,850,539 160,812,734
43,651,887$ 71,130,565$ 26,577,740$ 7,609,119$ 148,969,311$
(Continued)
City of San Luis Obispo, California
Statement of Cash Flows
Business-Type Activities - Enterprise Funds
For the Fiscal Year Ended June 30, 2025
Cash payments to suppliers for goods
and services
Cash payments to General Fund for
interfund services
Cash payments to employees for
services
Acquisition and construction of
capital assets
Cash flows from noncapital
financing activities:
Net change in cash and cash
equivalents
Cash and cash equivalents,
beginning of year
Cash and cash equivalents, end of
year
Net cash provided by (used in)
noncapital financing activities
Enterprise Funds
The accompanying notes are an integral part of these financial statements.
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City of San Luis Obispo, California
Statement of Cash Flows
Business-Type Activities - Enterprise Funds
For the Fiscal Year Ended June 30, 2025
Page 2
Water Sewer Parking Transit Total
Operating income (loss) 6,870,429$ 9,844,129$ 1,933,654$ (5,367,578)$ 13,280,634$
Depreciation 3,369,279 2,636,961 732,015 475,162 7,213,417
Accounts receivable (68,447) 48,672 (119,661) - (139,436)
Accounts payable (1,172,439) (1,825,325) 949,857 1,139,840 (908,067)
2,657 (10,921) 15,695 814 8,245
111,313 132,214 (66,315) 37,875 215,087
(195,669) (179,879) (63,850) (11,843) (451,241)
Net cash provided by (used in)
operating activities 8,917,123$ 10,645,851$ 3,381,395$ (3,725,730)$ 19,218,639$
Reconciliation of cash and investments to the balance sheet:
Cash and cash equivalents 43,651,887$ 71,130,287$ 4,397,096$ 7,609,119$ 126,788,389$
- 278 22,180,644 - 22,180,922
Total cash and investments 43,651,887$ 71,130,565$ 26,577,740$ 7,609,119$ 148,969,311$
Noncash investing, capital, and financing activities:
None
Enterprise Funds
Deferred OPEB and net OPEB
liability
Cash and investments held by fiscal
agent
Reconciliation of operating income
(loss) to net cash provided by (used
in) operating activities:
Adjustments to reconcile operating
income (loss) to net cash provided by
(used in) operating activities:
Change in assets, deferred outflows
of resources, liabilities, and deferred
inflows of resources:
Accrued salaries and
compensated absences
Deferred pensions and net
pension liability
The accompanying notes are an integral part of these financial statements.
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City of San Luis Obispo, California
Fiduciary Funds Financial Statements
For the Fiscal Year Ended June 30, 2025
Custodial funds are the only type of fiduciary funds maintained by the City.These are used to account for resources
held for the benefit of parties outside the primary government.Fiduciary funds are not reflected in the government-
wide financial statements because the resources of those funds are not available to support the City’s own programs.
An example of a custodial fund may include donations provided to the City to be utilized for specific purposes as
well as other funds held in trust of another entity to be utilized for a specific purpose.A specific example is the
Hazardous Materials Task Force Fund,created to provide special fire services around the County,which is funded
by multiple county and city agencies.The accounting used for fiduciary funds is much like that used for proprietary
funds.The Custodial Funds are presented with the fund financial statements in the supplementary information
section.
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Custodial Funds
Assets
Current assets:
Cash and investment 37,857,521$
Accounts receivable 436,957
Accrued interest receivable 38,700
Capital assets, net of accumulated depreciation 687,561
Total assets 39,020,739
Liabilities
Accounts payable 244,834
Compensated absence 48,661
Accrued Salaries 18,397
Other liabilities 10,713
Total liabilities 322,605
NET POSITION
Restricted for
Individuals, organizations, and other governments 38,698,134
Total Net Position 38,698,134$
City of San Luis Obispo, California
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
The accompanying notes are an integral part of these financial statements.
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Custodial Funds
ADDITIONS:
Charges for services 1,310,027$
Other revenue 4,416,911
Use of money and property 925,053
Total additions 6,651,991
DEDUCTIONS:
Administration expenses 1,607,113
Contractual services 1,713,973
Materials and supplies 184,997
Use of developer deposits 742,929
Depreciation 63,283
Total deductions 4,312,295
Change in net position 2,339,696
NET POSITION:
Beginning of year 36,487,382
Restatements (128,944)
Beginning of year, as restated 36,358,438
End of year 38,698,134$
City of San Luis Obispo, California
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2025
The accompanying notes are an integral part of these financial statements.
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City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page
Note 1:Summary of Significant Accounting Policies 1
Description of the Reporting Entity 1
Government-wide and Fund Financial Statements 1
Measurement Focus, Basis of Accounting and Basis of Presentation 1
Assets, Liabilities, and Net Position or Fund Balance 3
Reconciliation of Government-wide and Fund Financial Statements 6
Budgets and Budgetary Accounting 6
Fair Value Measurements 8
Note 2:Cash and Investments 8
Funds with Fiscal Agent 8
Investments 9
Note 3:Property Taxes 13
Note 4:Loans Receivable 14
Note 5:Capital Assets 14
Note 6:Leases 16
Note 7:Long Term Debt 18
Summary of Long-Term Debt 18
Governmental Activities Summary:19
Revenue Bonds 19
Subscription Based Information Technology Arrangements 21
Business-Type Activities Summary:22
Revenue Bonds 22
Loans 23
Installment Sale Agreements 24
Special Assessment Debt Without City Commitment 24
Note 8:Pension Plans 25
Agent-Multiple Employer Plan 25
General Information about the Pension Plan 25
Net Pension Liability 26
Changes in the Net Pension Liability 28
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions 29
Cost-Sharing Employer Plan 29
General Information about the Pension Plan 29
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions 31
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City of San Luis Obispo, California
Notes to the Financial Statements
Table of Contents
June 30, 2025
Page 2
Page
Payable to the Pension Plan 33
Note 9:Other Post-Employment Benefits (OPEB)34
General Information about OPEB 34
Net OPEB Liability 35
Changes in the Net OPEB Liability 36
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB 37
Payable to the OPEB Plan 38
Note 10:Deferred Compensation Plan 38
Note 11:Interfund Transactions 39
Note 12:Joint Ventures, Jointly Governed Organizations and Operating Agreements 40
Whale Rock Commission 40
San Luis Obispo Regional Transit Authority 41
San Luis Obispo Council of Governments 41
Nacimiento Water Supply Project 41
Note 13:Risk Management 42
California Joint Powers Insurance Authority 42
Self-Insurance Programs of the Authority 43
Adequacy of Protection 43
Self-Insurance 43
Note 14:Commitments and Contingencies 44
Litigation 44
Grant Awards 44
Note 14:Commitments and Contingencies (Continued)45
Regional Transit Authority Pension Expense 45
Note 15:Construction and Other Significant Commitments 45
Note 16:Fund Balance Deficiency 45
Note 17:New Accounting Standards 45
Accounting Standards Adopted 45
Note 18:Prior Period Adjustments 46
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City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Note 1:Summary of Significant Accounting Policies
The basic financial statements of the City of San Luis Obispo (City) have been prepared in conformity with U.S. Generally Accepted
Accounting Principles (GAAP), as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is
the accepted standard setting body for establishing governmental accounting and financial reporting principles.
The following is a summary of the more significant policies:
Description of the Reporting Entity
The City is a California charter city. It was incorporated on February 19, 1856 and chartered on May 1, 1876. It is organized in
accordance with the Council-Mayor-City Manager form of government. With a population of approximately 48,700, the City
provides a broad range of municipal services, including police and fire protection, parks and recreation, water and sewer utilities,
street maintenance, public transportation, parking, planning, and building and safety.
As required by GAAP, these financial statements present the City (the primary government) and its component units, entities for
which the government is considered to be financially accountable. Blended component units, although legally separate entities, are
in substance part of the government's operations which creates the need to include their financial information with that of the primary
government. The City has no component units that require discrete presentation in accordance with GASB standards.
Blended Component Unit. The City has identified The San Luis Obispo Capital Improvement Board (the Board) and the San Luis
Obispo Public Financing Authority (the Authority) as blended component units in accordance with GASB standards. Both provide
financing for the construction and acquisition of City facilities and consist of members of the City Council. Activities of both units
are accounted for in the applicable City governmental funds and consist of the issuance of debt secured by the lease of property.
Separate financial statements are not prepared for the San Luis Obispo Capital Improvement Board or San Luis Obispo Public
Financing Authority.
Government-wide and Fund Financial Statements
The government-wide financial statements (i.e. the statement of net position and the statement of activities) report information on
all of the non-fiduciary activities of the primary government and its component unit. Governmental activities, which normally are
supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely primarily on
fees and charges for services.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program
revenues. Direct expenses are those that are clearly identifiable within a specific function or segment. The indirect expense allocation
transfers general support services to operating programs based on the most current Cost Allocation Plan. Program revenues include
1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given
function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general
revenues.
Separate fund financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the
latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual
enterprise funds are reported as separate columns in the fund financial statements.
Measurement Focus, Basis of Accounting and Basis of Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of
accounting, as are the proprietary funds and fiduciary funds. Revenues are recorded when earned and expenses are recorded when a
liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which
they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider
have been met.
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City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 2
Note 1:Summary of Significant Accounting Policies (Continued)
As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to
this general rule are charges between the government’s enterprise funds and various other functions of the government. Elimination
of these charges would distort the direct costs and program revenues reported for the various functions concerned.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified
accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered
to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period.
For this purpose, the government generally considers revenues to be available if they are collected within 60 days of the end of the
current fiscal period. An exception to this timeframe is made to allow for the recognition of the final property tax distributions
received from the County, if necessary, as well as for sales tax revenues received in September. This later provision is made in order
for the City’s revenue stream to match that recognized by the State of California. Expenditures generally are recorded when a liability
is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated
absences and claims and judgments, are recorded only when payment is due.
Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be
susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered
to be measurable and available only when cash is received by the government.
Major Funds and Other Funds. GASB Standards define major funds and require that the City’s major governmental funds be
identified and presented separately in the fund financial statements. All other funds, called non-major funds, are combined and
reported in a single column, regardless of their fund type.
Major funds are defined as funds that have assets, liabilities, revenues, or expenditures/expenses equal to ten percent of their fund-
type total and at least five percent of the grand total. The General Fund is always a major fund. The City may also select other funds
it believes should be presented as major funds.
The City reports the following major governmental funds:
General Fund. This fund is the government’s primary operating fund. It accounts for all financial resources of the general
government, except those required to be accounted for in another fund.
Capital Outlay Fund. This fund was established to account for all of the City’s construction projects and capital purchases in excess
of $25,000 with the exception of those funded through non-major capital project funds and Enterprise Funds. Financing is provided
primarily through transfers in from the General Fund, and from State and Federal Grants.
The only proprietary funds the City reports are the Enterprise Funds, all of which are major funds. Proprietary funds are accounted
for on the economic resources measurement focus and the accrual basis of accounting. Under this method, revenues are recorded
when earned and expenses are recorded at the time liabilities are incurred. The City reports the following major enterprise funds:
Water Fund. This fund accounts for the provision of water services to the residents of the City as well as some customers in the
County. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration,
operations, maintenance, capital improvements and debt service.
Sewer Fund. This accounts for the provision of wastewater collection and treatment services to the residents of the City as well as
some customers in the County. All activities necessary to provide such services are accounted for in this fund, including, but not
limited to, administration, operations, maintenance, capital improvements and debt service.
Parking Fund. This fund accounts for activities related to the implementation of the Access and Parking Management Plan,
including the operation of municipal parking lots, parking structures, parking meters and residential parking districts. All activities
necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations,
maintenance, capital improvements and debt service.
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City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 3
Note 1:Summary of Significant Accounting Policies (Continued)
Transit Fund. This fund accounts for the operation and maintenance of the City's transit system. Although user fees are not the
primary funding source for the operation of the system, the State of California and the Federal government, which provide the major
funding sources for the system, require that local transit systems be accounted for on an enterprise fund basis.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally
result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing
operations. The principal operating revenues of the enterprise funds are charges to customers for sales and services. Operating
expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets.All
revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
The City has established twelve Custodial Funds, which are used to account for funds held by the City as an agent for Whale Rock
Commission, Jack House Committee, County Task Force, individual donations, Boysen Ranch, San Luis Ranch Community
Facilities District and San Luis Coastal Unified School District and San Luis Obispo County Public Access, Inc. Public Access
Television, Avila Ranch Private Reimbursement Agreement, Asset Forfeitures, SWAT Task Force and Police Evidence. Custodial
funds are accounted for using the accrual basis of accounting. See supplementary information for a complete list of Custodial Funds.
Assets, Liabilities, and Net Position or Fund Balance
Cash, Cash Equivalents and Investments. The City pools cash resources of its various funds to facilitate cash management. Cash
in excess of current requirements is invested and reported as investments. It is the City’s intent to hold investments until maturity.
However, the City may, in response to market conditions, sell investments prior to maturity in order to improve the quality, liquidity
or yield of the portfolio.
The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original
maturities of three months or less from the date of acquisition. Cash and investments held by fiscal agents are treated as cash
equivalents for purposes of the statement of cash flows.
Money markets and non-negotiable certificates of deposit are reported at amortized cost. All other investments are stated at fair
value.
Receivables and Payables. Activity between funds that are representative of lending/borrowing arrangements outstanding at the end
of the fiscal year are referred to as “due to/from other funds”.
All receivables are shown net of any allowance for uncollectible accounts if material. Charges for utility services rendered but
unbilled as of June 30 are accrued and are recognized as revenues.
Prepaids and Inventories. The City has no significant inventories. The cost of any inventoriable item has been recorded as an
expenditure or expense at the time of purchase. Certain payments to vendors reflect costs applicable to future accounting periods
and are recorded as prepaid items in both government-wide and fund financial statements. Prepayments in the governmental funds
are accounted for using the consumption method.
Restricted Assets. Certain proceeds of debt financings, as well as resources set aside for their repayment, are classified as restricted
assets on the balance sheet because they are maintained in separate trust bank accounts and their use is limited by applicable debt
covenants. Notes 2 and 5 have additional information on funds held by fiscal agents.
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City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 4
Note 1: Summary of Significant Accounting Policies (Continued)
Capital Assets. Capital assets, which include property, plant, equipment and infrastructure assets (such as streets, sidewalks and
bridges), are reported in the applicable governmental or business-type activities columns in the government-wide financial
statements, and in the proprietary funds statement of net position. Capital assets are defined by the City as assets with an initial,
individual cost of more than $25,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or
estimated historical cost if purchased or constructed. Donated capital assets, donated works of art and similar items, and capital
assets received in a service concession arrangement would be reported at acquisition value rather than fair value. The costs of normal
maintenance and repairs that do not add to the value of assets or materially extend assets’ lives are not capitalized. Major outlays for
capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital
assets of the business- type activities is included as part of the capitalized value of the assets constructed. Detailed information on
the City’s capital assets can be found in Note 4.
Property, plant and equipment of the City are depreciated using the straight line method over the following estimated useful lives:
Deferred Outflows and Inflows of Resources. The City recognizes deferred outflows and inflows of resources in the Statement of
Net Position. A deferred outflow of resources is defined as a consumption of net assets by the City that is applicable to a future
reporting period. The City has deferred outflows of resources related to pensions, other post-employment benefits (OPEB), and
unamortized loss on refunding of debt. A deferred inflow of resources is defined as an acquisition of net assets by the City that is
applicable to a future reporting period. The City has deferred inflows of resources related to pensions and OPEB.
Compensated Absences. City employees are granted vacation and sick leave in varying amounts. In the event of termination,
employees are reimbursed for the total value of their accumulated vacation days. Employees are reimbursed for 10% to 30% of the
accumulated sick leave only upon retirement and only after at least 10 years of service. In selected cases, similar accumulated sick
leave reimbursements may be available after 20 years of continuous employment. An employee's estate is reimbursed for 30% of
the employee's accumulated sick leave in the event of death while in the City's employ. A liability for compensated absences is
accrued in the government-wide and proprietary funds financial statements.
In accordance with GASB Statement No. 101, Compensated Absences, the City recognizes a liability for compensated absences for
leave time that (1) has been earned for services previously rendered by employees, (2) accumulates and is allowed to be carried over
to subsequent years, and (3) is more likely than not to be used as time off or settled (for example paid in cash to the employee or
payment to an employee flex spending account) during or upon separation from employment. The liability includes vacation leave
and sick leave expected to be used or paid upon termination, retirement, or death. The City uses the first-in, first-out (FIFO) method
to estimate the amount of compensated absences expected to be used or paid.
Long-Term Obligations. In the government-wide financial statements, and proprietary funds in the fund financial statements, long-
term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities,
or proprietary funds statement of net position. Bond premiums and discounts and deferred amounts on refunding are deferred and
amortized over the life of the bonds. Deferred amounts on refunding are reported separately from assets and liabilities in the
Statement of Net Position. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are
expensed as incurred.
In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during
the period they originate. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances
are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether
or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
Assets Years
Infrastructure 20-100
Buildings and structures 20-50
Improvements other than buildings 10-100
Equipment 3-21
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City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 5
Note 1:Summary of Significant Accounting Policies (Continued)
Net Pension Liability. The City recognizes a net pension liability, which represents the excess of the total pension liability over the
fiduciary net position of the pension reflected in the actuarial reports provided by the California Public Employees’ Retirement
System (CalPERS) plans (Plans). The net pension liability is measured as of the City’s prior fiscal year-end. Changes in the net
pension liability are recorded, in the period incurred, as pension expense or as deferred inflows of resources or deferred outflows of
resources depending on the nature of the change. The changes in the net pension liability that are recorded as deferred inflows of
resources or deferred outflows of resources (that arise from changes in actuarial assumptions or other inputs and differences between
expected or actual experience) are amortized over the weighted average remaining service life of all participants in the respective
pension plan and are recorded as a component of pension expense beginning with the period in which they are incurred.
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension
expense, information about the fiduciary net position of the City’s CalPERS Plans and additions to/deductions from the Plans’
fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments
(including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value. Projected earnings on pension investments are recognized as a component of pension expense
General fund is the governmental fund used to liquidate the pension liabilities of the governmental activities.
Other Post-Employment Benefits (OPEB) Liability. For purposes of measuring net OPEB liability, deferred outflows of resources
and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s
plan (OPEB Plan), and additions to or deductions from the OPEB Plan’s fiduciary net position, have been determined on the same
basis as they are reported by the California Employer’s Retiree Benefit Trust Program (CERBT). For this purpose, benefit payments
(including refunds of employee contributions) are recognized when currently due and payable in accordance with benefit terms.
Investments are reported at fair value.General fund is the governmental fund used to liquidate the OPEB liabilities of the
governmental activities.
Generally accepted accounting principles require that the reported OPEB results must pertain to liability and asset information within
certain defined timeframes. For this report, the following timeframes are used:
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
Fund Equity. In the fund financial statements, fund balance for governmental funds is reported in classifications that comprise a
hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purpose for which amounts
in the funds can be spent. Fund balance is reported in five components in accordance with GASB Statement No. 54 Fund Balance
Reporting and Governmental Fund Type Definitions –nonspendable, restricted, committed, assigned and unassigned. The City
Council may take action via minute order to add, delete or amend a fund balance commitment that is not required as a condition of
a bond covenant or other external, legal requirement.
Nonspendable. This component includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally
or contractually required to be maintained intact.
Restricted. This component consists of amounts that have constraints placed on them either externally by third-parties (creditors,
grantors, contributors, or laws or regulations of other governments) or by law through constitutional provisions or enabling
legislation.Enabling legislation authorizes the City to assess, levy, charge or otherwise mandate payment of resources (from external
resource providers) and includes legally enforceable requirements (compelled by external parties) that those resources be used only
for the specific purposes stipulated in the legislation.
Committed. This component consists of amounts that can only be used for specific purposes pursuant to constraints imposed by
minute order authorized by the City Council. Those committed amounts established by minute order cannot be used for any other
purpose unless the City Council adopts a new minute order so directing. With respect to encumbered amounts, the City may take
steps to cancel the order for goods or services and thereby terminate the obligation.
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Notes to the Financial Statements
June 30, 2025
Page 6
Note 1:Summary of Significant Accounting Policies (Continued)
Assigned. This component consists of amounts that are constrained by the City’s intent to be used for specific purposes but are
neither restricted nor committed. The City Manager or Director of Finance are authorized by City Council, via formal action at
regular public meetings, to assign amounts to a specific purpose. Constraints imposed on the use of assigned amounts can be removed
with no formal Council actions.
Unassigned. This component is the residual classification for the General Fund and includes all amounts not contained in the other
classifications. Unassigned amounts are technically available for any purpose. The General Fund is the only fund that reports a
positive unassigned fund balance amount. Other governmental funds may report negative unassigned fund balance, which occurs
when a fund has a residual deficit after allocation of fund balance to the nonspendable, restricted, or committed categories.
Fund Balance Spending Practice. The City follows a practice in which restricted, committed, assigned, and unassigned fund
balances are spent when more than one amount is available for a specific purpose. When both restricted and unrestricted resources
are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources (committed, assigned and
unassigned) as they are needed. When unrestricted resources (committed, assigned and unassigned) are available for use, it is the
City’s policy to use committed resources first, then assigned, and then unassigned as they are needed.
Reconciliation of Government-wide and Fund Financial Statements
A reconciliation between total fund balance of the governmental funds and total net position of the governmental activities as reported
in the government-wide statement of net position is presented in the basic financial statements.
A reconciliation between total net change in fund balance of the governmental funds and total change in net position of governmental
activities as reported in the government-wide statement of activities is presented in the basic financial statements.
There are no differences between total net position of the proprietary funds and total net position of the business-type activities as
reported in the government-wide statement of net position.
Budgets and Budgetary Accounting
Overview. The City has received national recognition for its use of a two-year Financial Plan and budgetary process that emphasizes
long-range planning and effective program management. Significant features of the City's two-year Financial Plan include the
integration of Council goal setting into the budgetary process and the extensive use of formal policies and measurable objectives.
The Financial Plan includes operating budgets for two years and a capital improvement plan (CIP) covering five years.
Under this multi-year approach, appropriations continue to be made annually; however, the Financial Plan is the foundation for
preparing the budget for the second year. Additionally, unexpended operating appropriations from the first year may be carried over
for specific purposes into the second year with the approval of the City Manager.
Management Policies. The overall goal of the City's Financial Plan is to link what the City wants to accomplish over the next two
years with the resources required to do so. Formal statements of budgetary policies and major objectives provide the foundation for
achieving this goal. Key budget principles include: maintaining fund balances at levels which will protect the City from future
uncertainties; estimating revenues at realistic levels; making current expenditures with current revenues; maintaining the City's
traditional commitment to a strong General Fund; and complying with provisions of the State constitution, City charter, municipal
code, and sound fiscal policy. Key revenue policies include: maintaining a diversified and stable revenue base; setting enterprise
fund rates at levels that fully recover the total cost of providing services in the Water, Sewer and Parking Funds; and at policy levels
for cost recovery in the Transit Fund; charging fees for General Fund programs in accordance with adopted user fee cost recovery
goals; and ensuring that new development pays its fair share of the cost of constructing necessary community facilities.
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Notes to the Financial Statements
June 30, 2025
Page 7
Note 1:Summary of Significant Accounting Policies (Continued)
Budget Process. The City Manager is responsible for preparing the budget and submitting it to the Council for approval.
Although specific steps will vary from year to year, the following is an overview of the general approach used under the
City's two-year budgetary process:
First Year.The Financial Plan process begins with City Council goal setting to determine major objectives to be
accomplished over the next two years. As part of this process, community groups, interested individuals, and
Council advisory bodies present their recommendations to the Council. Goals approved by the City Council are
incorporated into the budget instructions issued to the operating departments, who are responsible for submitting
initial budget proposals. After these proposals are comprehensively reviewed and a detailed financial forecast is
prepared, the City Manager issues the Preliminary Financial Plan for public comment. A series of study sessions
and public hearings are then held leading to Council adoption of the Financial Plan and Budget prior to the start
of the fiscal year.
Second Year. Before the beginning of the second year of the two-year cycle, the Council reviews the progress
during the first year, adjusts as necessary and approves appropriations for the second fiscal year. Unspent operating
appropriations from the first year may be carried over for specific purposes into the second year with the approval
of the City Manager. Unspent and unencumbered operating appropriations lapse at the end of the second year. The
fiscal year which ended June 30, 2025 was the second year of the 2023-25 two-year cycle.
Mid-Year Reviews. The Council formally reviews the City's financial condition and amends appropriations, if
necessary, each February.
Status Reports. Financial reports are prepared monthly to monitor the City's fiscal condition; more formal reports
are posted to the City's website on a quarterly basis. Additionally, more focused reports are issued on key revenues,
such as sales tax, transient occupancy tax and quarterly reports on investments. The status of major goals and
program objectives, including Capital Improvement Plan (CIP) projects, are also formally reported to the Council
on an ongoing basis.
Accounting and Budget Administration. Budgets are prepared for each fund in accordance with its respective basis of accounting
consistent with U.S. Generally Accepted Accounting Principles (GAAP). All governmental funds have legally adopted budgets
annually. While budgets are prepared for the City's capital projects funds, the capital projects generally span more than one year and
are effectively controlled at the project level; accordingly, budgetary comparisons are not presented for capital projects funds in the
accompanying other supplementary information following the basic financial statements.
As provided under the City Charter, the Council may amend or supplement the budget at any time after its adoption by majority vote
of the Council members. The legal level of budgetary control –the level at which expenditures are not to exceed appropriations –is
the fund level.
For management control purposes, the City Manager has the authority to make or approve administrative adjustments to the budget
provided those changes will not have a significant policy impact nor affect budgeted year-end fund balances. Department heads have
the authority to transfer line-item budgets within the department within a fund. Both the original and final amended budgets of the
General Fund are presented as required supplementary information following the notes to the financial statements. Budget
information for non-major governmental funds with annual budgets is presented in other supplementary information following the
notes to the financial statements.
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Notes to the Financial Statements
June 30, 2025
Page 8
Note 1:Summary of Significant Accounting Policies (Continued)
Encumbrances. The City uses an encumbrance system as an extension of normal budgetary accounting for the other governmental
funds. Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to
reserve that portion of applicable appropriations. Encumbrances outstanding at year-end are recorded as restricted, committed, or
assigned fund balances since they do not constitute expenditures or liabilities. Unencumbered appropriations lapse at year-end.
Encumbered appropriations are carried forward in the ensuing year’s budget.
Indirect Cost Reimbursement. All of the City's general government and engineering programs are accounted and budgeted for in
the General Fund. However, some of these support service programs also benefit the City's enterprise and custodial fund operations,
and accordingly, payments are made from these funds to reimburse the General Fund for these services. The payments are based on
a Central Service Cost Allocation Plan prepared for this purpose, which distributes these shared costs in a uniform, consistent manner
in accordance with GAAP.
Fair Value Measurements
As defined in GASB Statements, fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The City uses valuation techniques that are appropriate
under the circumstances and for which sufficient data are available to measure fair value. Valuation techniques maximize the use of
relevant observable inputs and minimize the use of unobservable inputs.
GASB Statements establish a hierarchy of inputs to valuation techniques used to measure fair value. That hierarchy has three levels:
Level 1 —Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 —Observable inputs, other than Level 1 prices, for the asset or liability, either directly or indirectly.
Level 3 —Unobservable inputs for the asset or liability.
For fiscal year ended June 30, 2025, the application of valuation techniques applied to the City’s financial statements has been
consistent.
Note 2:Cash and Investments
The City follows the practice of pooling cash and investments for all funds under its direct daily control. Funds held by outside fiscal
agents under provisions of bond indentures are maintained separately.
Interest earned on pooled cash and investments is allocated quarterly to the various funds based on the respective fund's average
quarterly cash balance. Interest earned from cash and investments with fiscal agents is credited directly to such funds.
Funds with Fiscal Agent
The City has monies held by trustees or fiscal agents pledged to the payment or security of certain bonds. The California Government
Code provides that these funds, in the absence of specific statutory provisions governing the issuance of bonds, may be invested in
accordance with the ordinance, resolutions, or indentures specifying the types of investments its trustees or fiscal agents may make.
These ordinances, resolutions, or indentures are generally more restrictive than the City's general investment policy. In no instance
have additional types of investments been authorized which are not permitted by the City's investment policy.
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City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 9
Note 2:Cash and Investments (Continued)
Investments
The City is authorized by its investment policy, in accordance with Section 53601 of the California Government Code, to invest in
the following instruments:
Treasury bills and notes
Government Sponsored Enterprises
Commercial paper
Repurchase agreements
Bankers' acceptances
Corporate medium-term notes
Negotiable certificates of deposit
Collateralized bank deposits
Money market mutual funds
State Local Agency Investment Fund (LAIF)
Investments are stated at fair value, based on quoted market prices, in accordance with GASB standards. Investment income has
been adjusted to reflect any unrealized gains and losses resulting from the fair value adjustment annually. While U.S. generally
accepted accounting principles require recording any increases or decreases in the fair value of the City’s investments, it is the City’s
policy to make all investment decisions based on holding them through maturity, and therefore the City may not realize the gains or
losses resulting from the fair value adjustment. As such, changes in fair value generally do not affect the long-term results of the
portfolio, but they can result in significant fluctuations from year-to-year.
The fair value of the City’s position in the State LAIF pool is the same as the value of the pool shares. The State LAIF pool credit
quality is unrated. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance
with State statute. The State Treasurer’s Office audits the fund annually.
At June 30, 2025, cash and investments consisted of the following:
Fa ir
Value
Pe rcent of
Portfolio
Cas h and cash equivalents 64,478,686$ 20.66%
Inv estments:
Sta te Local Agency Investme nt Fund 49,234,734 15.78%
U.S. Treasury Bond / Note 70,706,736 22.66%
Federal Agency Bond / Note 4,960,922 1.59%
Cor porate Note 22,911,999 7.34%
Muni cipal Bond/Note 211,680 0.07%
Bank Note 668,088 0.21%
Asset-Backed Securities 10,622,789 3.40%
Nego ti able Certificates of Deposit 1,013,896 0.32%
No n-Ne go ti able Certificates of Deposit 2,107,965 0.68%
Mo ney Market Funds 85,171,554 27.29%
Total inv estments 247,610,363 79.34%
Total cash and inve stments 312,089,049$ 100.00%
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City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 10
Note 2:Cash and Investments (Continued)
At June 30, 2025, cash and investments are reflected in the financial statements as following:
Investment Fair Value Measurements. The City categorizes its fair value measurements within the fair value hierarchy established
by generally accepted accounting principles. Investment securities classified in Level 1 of the fair value hierarchy are valued using
prices quoted in active markets for those securities. Investment securities classified in Level 2 of the fair value hierarchy are valued
using matrix pricing or market corroborated pricing. Matrix pricing is used to value securities based on the securities’ relationship
to benchmark quoted prices.
The following is a summary of the fair value measurements as of June 30, 2025:
Custodial Credit Risk –Deposits with Financial Institutions. The custodial credit risk for deposits is the risk that, in the event of
the failure of a depository financial institution, the City will not be able to recover deposits. Deposits with financial institutions,
including non-negotiable certificates of deposit, totaled $65,105,763 at June 30, 2025 and were insured or collateralized with
securities held by the pledging financial institution's trust department or agent in the City's name.
Gove rnme ntal
Fu nds
Business-Type
Fu nds
Fi du ciary
Fu nds Total
Ca sh and in vestme nts 124,667,748$ 126,788,389$ 37,857,521$ 289,313,658$
Ca sh and in vestme nts h eld by fis cal ag ents 594,469 22,180,922 - 22,775,391
Total cas h and i nves tments 125,262,217$ 148,969,311$ 37,857,521$ 312,089,049$
Gove rnme nt-Wi de S tate me nt of Ne t
Positi on
Fa ir Va lue
Investme nts by fair value hierarchy
U.S. Treasury Bond / Note 70,706,736$ -$ 70,706,736$ -$
Federal Age nc y Bond / Note 4,960,922 - 4,960,922 -
Corporate Note 22,911,999 - 22,911,999 -
Muni cipal Bond/Note 211,680 - 211,680 -
Bank Note 668,088 - 668,088 -
Asset-Backed Securities 10,622,789 - 10,622,789 -
Nego ti able Certificates of Deposit 1,013,896 - 1,013,896 -
Total investme nts by fair value hierarchy 111,096,110 -$ 111,096,110$ -$
Investme nts not subject to fair value hierarchy
State Local Agency Inv estme nt Fund 49,234,734
Non-Negotiable Certificates of Deposit 2,107,965
Money Market Fund s 85,171,554
Total investme nts not subject to fair value hierarchy 136,514,253
Total investme nts measured at fair value 247,610,363$
Fa ir Value Me asure me nt s Using
Quote d Pric es in
Active Marke ts
for Ident ic al
As se ts (Level 1)
Significant
Other
Obse rvable
Input s
(Level 2)
Signific ant
Unobse rv able
Input s
(Level 3)
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City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 11
Note 2:Cash and Investments (Continued)
The California Government Code requires California financial institutions to secure the City's deposits by pledging government
securities as collateral. The fair value of the pledged securities must equal 110% of the City's deposits. California law also allows
financial institutions to secure City deposits by pledging first trust deed mortgage notes equal to 150% of the City's deposits or letters
of credit issued by the Federal Home Loan Bank of San Francisco having a value of 105% in excess of the total amount of deposits.
Custodial Credit Risk -Investments. This is the risk that in the event of the failure of a counterparty, the City will not be able to
recover the value of its investments that are in the possession of an outside party. All of the City’s investments in securities are
insured or registered and held by a counterparty in the City’s name in accordance with the City’s policies.
Interest Rate Risk. This is the risk that the fair value of securities in the portfolio will fall due to changes in general interest rates. In
accordance with its policies in the Investment Management Plan, the City mitigates interest rate risk by:
Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby
avoiding the need to sell securities on the open market before maturity.
Investing operating funds primarily in shorter-term securities.
The City’s investment policy also includes portfolio maturity targets. A minimum of 20% of the portfolio will be invested in
securities maturing in one year or less. Up to 80% of the portfolio can be invested in securities with a maturity over one year, with
no more than 10% of the portfolio invested in securities with a maturity over five years.
Maturities using the segmented time distribution method for those investments requiring this disclosure are as follows:
Investments held by fiscal agents are structured with maturity dates that correspond to the payment of final debt service of the
respective bond indenture.
Credit Risk. This is the risk of loss due to the failure of the security issuer or backer. The City’s policies to mitigate credit risk
include:
Limiting investments to the safest types of securities. As noted above, the California Government Code limits the investment
vehicles available to local agencies. The credit risk of these securities is measured by the assignment of a rating by a
nationally recognized statistical rating organization. The table below presents the rating for each investment type as
provided by Standard & Poor’s except as noted.
Pre-qualifying the financial institutions, broker/dealers, intermediaries and advisors with which the City will do business.
Fa ir Value
Le ss Than One
Mont h
One Mo nt h to
One Ye ar One to Fiv e Ye ars Ove r Fi ve Years
State Local Agency Investment Fund 49,234,734$ -$ 49,234,734$ -$ -$
U.S. Treasury Bond / Note 70,706,736 - 22,083,062 48,623,674 -
Federal Agency Bond / Note 4,960,922 - 3,816,445 1,144,477 -
Corporate Note 22,911,999 - 3,450,288 19,461,711 -
Muni cipal Bond/Note 211,680 - 211,680 - -
Bank Note 668,088 - - 668,088 -
Asset-Backed Securities 10,622,789 - - 10,622,789 -
Negotiable Certificates of Deposit 1,013,896 - - 1,013,896 -
Non-Negotiable Certificates of Deposit 2,107,965 - 2,107,965 - -
Mo ney Ma rket Funds 85,171,554 85,171,554 - - -
Total maturities 247,610,363$ 85,171,554$ 80,904,174$ 81,534,635$ -$
Cash in banks and on hand 64,478,686
312,089,049$
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City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 12
Note 2:Cash and Investments (Continued)
The following table identifies the Standard & Poor’s credit quality ratings for those investments requiring this disclosure as of June
30, 2025:
Concentration Credit Risk. The City’s policies contained in the Investment Policy and Management Plan provide guidelines (by
type of investment that limits either the dollar amount, the percent of the portfolio or the maturity term) for diversifying the
investment portfolio so that potential losses on individual securities will be minimized.
The City’s Investment Management Plan outlines the following criteria related to portfolio diversification:
No more than 5% of the City’s portfolio (exclusive of government agency issues or LAIF) shall be placed with any financial
institution.
No more than 25% of the City’s portfolio shall be invested in collateralized certificates of deposit issued by financial
institutions.
Certificates of deposit (negotiable and collateralized) placed by the City shall not constitute more than 15% of the total
assets of the institution; and negotiable certificates of deposit will only be placed with institutions with total assets in excess
of $200 million and that maintain a ratio of equity to total assets of at least 5%.
Foreign Currency Risk. The City does not hold any investment that is based on foreign currency exchange rates.
Type of Inve stment Rating Total
Federal Agency Bonds / Notes AA+4,960,922$
Corporate Notes AAA 1,617,924
AA 318,488
AA-6,338,531
A+8,183,504
A 5,443,148
A-1,010,404
Total Cor porate Notes 22,911,999
Muni cipal Bond/Note AA-211,680
Bank Note A 668,088
As set-Backed Securities AAA 7,489,200
NR 3,133,589
Ne go ti able Certificates of Deposit A+1,013,896
U.S. Treasury Bonds / Notes AA+70,706,736
Not Rated:
State Local Agency Inv estme nt Fund 49,234,734
Non-Negotiable Certificates of Deposit 2,107,965
Mo ney Ma rket Mutua l Fund s 85,171,554
Total Inv estme nts 247,610,363$
100
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City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 13
Note 3:Property Taxes
Property taxes in the State of California (State) are administered for all local agencies at the county level, and consist of secured,
unsecured and utility tax rolls. The following is a summary of major policies and practices relating to property taxes:
Property Valuation. Valuations are established by the Assessor of the County of San Luis Obispo (County) for the secured
and unsecured property tax rolls; the utility property tax roll is valued by the State Board of Equalization. Under the
provisions of Article XIIIA of the State Constitution (Proposition 13 adopted by the voters on June 6, 1978), properties are
assessed at 100% of full value. Proposition 13 also modified the value of taxable real property for fiscal 1979 by rolling
back values to fiscal 1976 levels. From this base of assessment, subsequent annual increases in valuation are limited to a
maximum of 2%. However, increases to full value are allowed for property improvements or upon change in ownership.
Personal property is excluded from these limitations and is subject to annual reappraisal.
Tax Levies. Under the provisions of Proposition 13, the countywide tax levy for general revenue purposes is limited to 1%
of full market value, which results in a tax rate of $1.00 per $100 assessed valuation. Tax rates for voter approved
indebtedness are excluded from this limitation.
Tax Levy Dates. All lien dates attach annually on January 1 preceding the fiscal year for which the taxes are levied. The
fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on both real and unsecured personal
property as it exists at that time. The lien against real estate as well as the tax on personal property is not relieved by
subsequent renewal or change in ownership.
Tax Collections. The County Treasurer/Tax Collector is responsible for all property tax collections. Taxes and assessments
on the secured and utility rolls, which constitute a lien against the property, may be paid in two installments: the first
installment is due on November 1 of the fiscal year and is delinquent if not paid by December 10; and the second installment
is due on March 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not
constitute a lien against real property. However, if the taxes become delinquent the lien is attached against anything the
individual owns, which could include real property. Payment must be made in one installment, which is delinquent if not
paid by August 31 of the fiscal year. Significant penalties are imposed by the County for late payments.
Teeter Plan. In 1993-94 the City elected to receive property tax revenue in accordance with the alternative method of
distribution prescribed by Sections 4701-4717 of the California Revenue and Taxation Code, which is commonly known
as the “Teeter Plan” whereby the County remits 100% of taxes levied without regard to delinquencies. The County then
pursues collection, retaining any delinquent taxes and related penalties and interest.
Tax Levy Apportionments. Due to the nature of the countywide maximum levy, it is not possible to identify general purpose
tax rates for specific entities. Under State legislation adopted after the passage of Proposition 13, apportionments to local
agencies are made by the County Auditor Controller based primarily on two factors: the ratio that each agency represented
of the total County wide levy for the three years prior to fiscal 1979; and subsequent adjustments to these apportionments
and transfers to the “Educational Revenue Augmentation Fund” (ERAF) as determined by the State.
City Property Tax Distribution Policy. Property taxes are recorded in the General Fund as general-purpose revenue.
Transfers are made from the General Fund as needed to support expenditures in the Capital Outlay, Open Space Protection,
Fleet Replacement, Information Technology Replacement, Major Facility Replacement and Debt Service Funds. Property
taxes receivable at June 30, 2025 have been accrued since they will be collected within 60 days subsequent to year-end.
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Notes to the Financial Statements
June 30, 2025
Page 14
Note 4:Loans Receivable
Loans receivable, including accrued interest comprised balances from the following programs, all of which are discussed on the
following pages.These loans are non-compounding, meaning they accrue interest on only the original principal. No interest or
principal is due until the end of the term. Some developments may have more than one type of loan with the City.
A.Affordable Housing Loans -The City’s Affordable Housing Fund provides grants and loans to certain development
projects that meet the City’s affordability criteria. As of June 30, 2025, the Fund has 17 loans for affordable housing
developments with interest rates ranging from 0% to 4% on the original principal and repayment terms of 30 to 57 years.
Outstanding loans had a remaining principal balance of $9.2 million; 4 loans for $669,063 are forgivable if certain criteria
are met netting $8.5 million in loans. The Fund has secured more than 450 affordable housing units for City residents.
B.BEGIN Homeownership Loan -The City has provided deferred payment loans utilizing funding from the State of
California under the BEGIN program. On June 30, 2025, the Fund had two outstanding loans utilizing this program with a
principal balance of $130,000. These loans are provided for a term of 30 years with an annual interest rate of 3% on the
original principal.
C.Down Payment Assistance - The Fund has provided down payment assistance loans to individuals purchasing affordable
housing units. As of June 30, 2025, the Affordable Housing Fund had seven outstanding down payment assistance loans
with a principal balance of $292,995. These loans are provided for a term of 30 years with an annual interest rate of 3%on
the original principal.
D.Impact Fee Deferral Loan –The City has provided certain affordable housing developments with loans equal to the
amount of certain impact fees. These loans are reflected in the respective impact fee funds. As of June 30, 2025, the total
principal outstanding was $5,004,148. These loans are provided for a term of 55 years with an annual interest rate of 3%
on the original principal.
E.Community Development Block Grant (CDBG) Fund Loans –The City has provided loans from the City’s allocation
of CDBG funding for certain affordable housing developments. As of June 30, 2025, the CDBG Fund had $1,556,161
principal outstanding on the loans with $443,217 forgivable if certain conditions are met. The loans have terms of 30 years
and annual interest rates of 3% to 4% on the original principal.
Note 5:Capital Assets
GASB standards require that the City report in the government-wide statements the value of all capital assets net of accumulated
depreciation, including infrastructure assets, in accordance with GAAP. Infrastructure assets are defined as long-lived capital assets
that are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets.
Total Balance
Des crip tion Lo ans Receivable In teres t Re ceivable Ju ne 30, 2025
Go vern me ntal Fu nds:
Afford able Ho us in g Lo ans 8,490,688$ 2,850,875$ 11,341,563$
BEGIN Ho me owners hip Lo ans 130,000 60,475 190,475
Down Pay me nt Assistances 292,995 79,866 372,861
CDBG Loans 1,112,944 744,699 1,857,643
Impact Fe e Lo ans 2,729,061 798,485 3,527,546
Total Governmental Fu nds 12,755,688 4,534,400 17,290,088
En terpris e Fu nds:
Impact Fe e Lo ans 2,275,087 477,106 2,752,193
Total En terpris e Fu nds 2,275,087 477,106 2,752,193
Total Primary Go vernment 15,030,775$ 5,011,506$ 20,042,281$
102
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City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 15
Note 5:Capital Assets (Continued)
The minimum requirement for compliance with GASB standards is to provide infrastructure valuations for all assets constructed,
acquired, or placed into service on or after July 1, 1980. Relevant assets for the City were valued at one of two dates: 1) the original
date of construction, if available, or 2) the incorporation date of the City. Each asset was reviewed to determine the adequacy of the
data to value the asset prior to July 1, 1980 using historical cost or estimated historical cost.
Capital assets activity for the fiscal year ended June 30, 2025 was as follows:
Balance Balance
June 30, 2024 Addit ions De le tions Transfe rs June 30, 2025
Gove rnmental activities:
Capital assets not being depreciated:
La nd 34,263,736$ -$ -$ -$ 34,263,736$
Construction in progress 29,750,174 19,654,898 (1,122) (27,180,557) 22,223,393
Public art 646,630 - - - 646,630
Total capital assets not
being depreciated 64,660,540 19,654,898 (1,122) (27,180,557) 57,133,759
Capital assets being depreciated:
Infr astructur e 214,889,288 - - 20,412,914 235,302,202
Ac cumulated Depreciation (82,293,168) (3,628,183) - (1,677,819) (87,599,170)
Buildings and improvements 59,159,418 - (16,000) 5,793,182 64,936,600
Ac cumulated Depreciation (25,338,081) (1,931,009) 16,000 1,716,192 (25,536,898)
Equipment 36,006,043 - (241,818) 974,461 36,738,686
Ac cumulated Depreciation (22,285,375) (2,282,966) 241,818 (38,373) (24,364,896)
Capital assets being amortized:
Right of use - Lease asset 736,731 - - - 736,731
Ac cumulated Amortization (342,353) (152,403) - - (494,756)
Subscription based I.T. agreements 897,624 - (155,082) - 742,542
Ac cumulated Amortization (507,530) (258,985) 117,973 - (648,542)
Total capital assets being
depreciated/amortized, net 180,922,597 (8,253,546) (37,109) 27,180,557 199,812,499
Governme nt al activities,
capital assets, net 245,583,137$ 11,401,352$ (38,231)$ -$ 256,946,258$
Business-type activities:
Capital assets not being depreciated:
La nd 13,814,878$ -$ -$ -$ 13,814,878$
Construction in progress 181,987,785 53,169,805 (37,637) (17,175,259) 217,944,694
Total capital assets not
being depreciated 195,802,663 53,169,805 (37,637) (17,175,259) 231,759,572
Capital assets being depreciated:
Infr astructur e 245,965,945 - - 11,886,327 257,852,272
Ac cumulated Depreciation (117,924,287) (5,054,114) - (801,210) (123,779,611)
Buildings and improvements 30,527,376 - - 381,264 30,908,640
Ac cumulated Depreciation (17,158,306) (592,430) - 7,521 (17,743,215)
Equipment 26,278,687 - (372,433) 4,907,663 30,813,917
Ac cumulated Depreciation (17,783,442) (1,541,190) 372,433 793,694 (18,158,505)
Capital assets being amortized:
Subscription based I.T. agreements 77,026 - - - 77,026
Ac cumulated Amortization (51,343) (25,683) - - (77,026)
Total capital assets being
depreciated, net 149,931,656 (7,213,417) - 17,175,259 159,893,498
Business-type activities,
capital assets, net 345,734,319 45,956,388 (37,637) - 391,653,070
Total Gove rnment-wide 591,317,456$ 57,357,740$ (75,868)$ -$ 648,599,328$
103
Page 307 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 16
Note 5:Capital Assets (Continued)
Depreciation and amortization expense was charged to functions/programs as follows:
Note 6:Leases
Pursuant to GASB 87, the City has the following lease receivables:
James Town
On 11/5/2013, the City entered into a lease with James Town Premier SL Retail, L.P. or commercial retail space located at the Marsh
Street parking structure. Under the lease, the lessee pays the City $11,310 per month from 2/1/2014 –1/31/2015 and with 3% increase
each year from 2/1/2015 –1/31/2024. City renewed the lease for 5 years. The lease receivable is measured as the present value of
the future minimum rent payments expected to be received during the lease term at a discount rate of 3.99%, which was the 5-year
US Treasury rate in effect when the lease was entered into. In fiscal year 2025, the City recognized $133,858 of lease revenue and
$19,007 of interest revenue under the lease.
Crown Castle
On 9/19/2017, the City entered into a lease with Crown Castle NG West LLC to utilize City utility poles for communications
equipment. Under the lease, the initial annual pole fee shall consist of $1,000 for each city pole which Crown Castle’s facilities are
to be installed pursuant to this agreement and is payable to city upon execution and delivery of this agreement and prior to Crown
Castle installing any portion of the network or any facilities. The term ends on 9/1/2047 with 3% increase annually. The lease
receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a
discount rate of 3.5%, which was the 5-year US Treasury rate in effect when the lease was entered into. In fiscal year 2025, the City
recognized $6,491 of lease revenue and $5,661 of interest revenue under the lease.
Garden Street
On 8/1/2015, the City entered into a lease with Garden Street SLO Partners, L.P for the right to use land formerly a surface parking
lot in order to build a hotel.Under the lease,the lessee pays the City $171,600 or the “Base Annual Rent Floor”, which is the amount
of Landlord’s annual net revenue from the operation of Parking Lot 2 on the premises in the period of twelve months ended on the
last day of the last full calendar month ended two months prior to the rent commencement date.The amount of base rent shall be
increased as of the first day of each rent adjustment period commencing with the rent adjustment period that begins on the first day
of the third lease year and on the first day of each subsequent rent adjustment period. The lease receivable is measured as the present
value of the future minimum rent payments expected to be received during the lease term at a discount rate of 1%, which is the 5-
year US Treasury rate in effect when the lease was entered into. In fiscal year 2025, the City recognized $391,827 of lease revenue
and $368,219 of interest revenue under the lease.
Governme nt al activities:
Public safety 973,615$
Transportation 4,387,129
Cultur e and recreation 928,459
Commu ni ty development 155,245
Ge ne ral government 1,809,098
Total depreciation - governme ntal activities 8,253,546
Busine ss-type activities:
Wa ter 3,369,279
Sew er 2,636,961
Parking 732,015
Transit 475,162
Total depreciation - business-type activities 7,213,417
Total Gove rnment-wide 15,466,963$
104
Page 308 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 17
Note 6: Leases (Continued)
Laguna AT&T
On 9/16/2009, the City entered into a lease with New Cingular Wireless PCS, LLC to locate a cellular communication site at the
Laguna Lake Golf Course. Under the lease, the lessee pays the City $26,000 annually and thereafter, be multiplied by the CPI
Adjuster or 3%, whichever is greater that ends on 9/30/2029. The lease receivable is measured as the present value of the future
minimum rent payments expected to be received during the lease term at a discount rate of 2%, which is the 5-year US Treasury rate
in effect when the lease was entered into. In fiscal year 2025, the City recognized $43,195 of lease revenue and $5,023 of interest
revenue under the lease.
Laguna SBA
On 2/1/2005, the City entered into a lease with SBA 2012 TC Assets, LLC to locate a cellular communication site at the Laguna
Lake Golf Course. Under the lease, the lessee pays the City $25,000 annually and thereafter, be multiplied by the CPI Adjuster or
3%, whichever is greater, that ends in 2025. The lease receivable is measured as the present value of the future minimum rent
payments expected to be received during the lease term at a discount rate of 3%, which is the 5-year US Treasury rate in effect when
the lease was entered into.In fiscal year 2025, the City recognized $19,588 of lease revenue under the lease.
Santa Rosa St
On 5/13/2011, the City entered into a lease with New Cingular Wireless PCS, LLC to locate a cellular communication site at the
Santa Rosa Park. Under the lease,the lessee pays the City $26,000 annually and thereafter, be multiplied by the CPI Adjuster or 3%,
whichever is greater, that ends on 5/13/2031. The lease receivable is measured as the present value of the future minimum rent
payments expected to be received during the lease term at a discount rate of 2%, which is the 5-year US Treasury rate in effect when
the lease was entered into. In fiscal year 2025, the City recognized $73,350 of lease revenue and $10,876 of interest revenue under
the lease.
The future revenue payments as of June 30, 2025 are as follows:
Year Ending
June 30,Principal Intere st Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest
2026 2,000$ 5,601$ -$ 369,364$ 38,836$ 4,286$ 69,693$ 9,555$ 122,794$ 14,866$ 233,322$ 403,671$
2027 2,298 5,531 - 370,367 40,906 3,509 73,464 8,161 131,357 10,432 248,025 398,000
2028 2,613 5,451 - 371,380 43,057 2,691 77,382 6,692 140,351 5,692 263,403 391,905
2029 2,946 5,359 - 372,403 45,291 1,830 81,452 5,144 85,662 1,002 215,350 385,739
2030 3,298 5,256 - 373,275 46,196 924 85,679 3,515 - - 135,173 382,970
2031-2035 22,502 24,278 - 1,878,734 - - 90,068 1,801 - - 112,571 1,904,813
2036-2040 34,701 19,530 - 1,894,309 - - - - - - 34,701 1,913,839
2041-2045 50,458 12,410 116,100 1,902,630 - - - - - - 166,558 1,915,040
2046-2050 39,216 2,791 117,782 1,902,301 - - - - - - 156,998 1,905,092
2051-2055 - - 318,486 1,891,932 - - - - - - 318,486 1,891,932
2056-2060 - - 576,982 1,870,265 - - - - - - 576,982 1,870,265
2061-2065 - - 844,561 1,835,348 - - - - - - 844,561 1,835,348
2066-2070 - - 1,148,189 1,785,236 - - - - - - 1,148,189 1,785,236
2071-2075 - - 1,530,943 1,718,156 - - - - - - 1,530,943 1,718,156
2076-2080 - - 1,927,732 1,631,402 - - - - - - 1,927,732 1,631,402
2081-2085 - - 2,374,735 1,522,274 - - - - - - 2,374,735 1,522,274
2086-2090 - - 2,929,704 1,388,291 - - - - - - 2,929,704 1,388,291
2091-20295 - - 3,505,635 1,225,726 - - - - - - 3,505,635 1,225,726
2096-2100 - - 4,151,056 1,030,847 - - - - - - 4,151,056 1,030,847
2101-2105 - - 4,943,368 800,216 - - - - - - 4,943,368 800,216
2106-2110 - - 5,766,264 528,717 - - - - - - 5,766,264 528,717
2111-2115 - - 6,684,816 211,224 - - - - - 6,684,816 211,224
Total 160,032$ 86,207$ 36,936,353$ 26,874,397$ 214,286$ 13,239$ 477,737$ 34,867$ 480,164$ 31,991$ 38,268,572$ 27,040,702$
TotalCrown Castle Garden St Laguna ATT Santa Rosa St Marsh St
105
Page 309 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 20
Note 7:Long Term Debt (Continued)
Lease Liability (Cuesta Peak)
On October 23, 2003, the City entered into a 22-year Lease Agreement as lessee of a site for City radio equipment. The City pays
the landlord $16,857.96 annually with a 4% increase. An initial lease liability was recorded in the amount of $157,527. As of June
30, 2025, the value of the lease liability is $20,148. The City is required to make monthly payments of $670 and increase annually
by 4% in October of each year. The lease has an interest rate of 3.04%. The value of the right to use asset as of June 30, 2025 of
$157,442 with accumulated amortization of $110,633 is included in the intangible assets on the capital assets activities table found
in Note 5 above.
Lease Liability (994 Mill Street)
On June 9, 2022, the City entered into a 3-year Lease Agreement as lessee of a site for the use of 11 parking spaces. The term of this
lease commenced on July 1, 2022. The City pays the landlord $10,038 annually with a 3% increase. An initial lease liability was
recorded in the amount of $579,204. As of June 30, 2025, the value of the lease liability is $256,298. The lease has an interest rate
of 4%. The value of the right to use asset as of June 30, 2025 of $579,204 with accumulated amortization of $231,700 is included
in the intangible assets on the capital assets activities table found in Note 5 above.
At June 30, 2025, the aggregate maturities of the aforementioned governmental activities revenue bonds were as follows:
At June 30, 2025, the aggregate maturities of the aforementioned governmental lease liabilities were as follows:
Fo r the Ye ar Ending June 30,Principa l Int erest Total
2026 1,143,450$ 581,515$ 1,724,965$
2027 986,775 525,693 1,512,468
2028 1,036,425 478,929 1,515,354
2029 1,082,625 431,158 1,513,783
2030 1,138,825 380,977 1,519,802
2031/2035 4,359,025 1,339,293 5,698,318
2036/2040 2,752,100 537,175 3,289,275
2041/2045 1,900,000 196,000 2,096,000
Subtotal 14,399,225 4,470,740 18,869,965
Una mo rtized bond Premium 966,956 - 966,956
Total 15,366,181$ 4,470,740$ 19,836,921$
Fo r the Year En di ng J une 3 0,Principal In te res t Total
2026 143,768$ 8,365$ 152,133$
2027 132,678 2,892 135,570
276,446$ 11,257$ 287,703$
106
Page 310 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 18
Note 7:Long Term Debt
Summary of Long-Term Debt
The following is a summary of the City's long-term debt transactions for the year ended June 30, 2025:
Compensated absences in the governmental funds are generally liquidated by the General Fund on a pay as you go basis. For detail
of estimated claims and liabilities, see Note 11.
The San Luis Obispo Capital Improvement Board (Board) and the San Luis Obispo Public Financing Authority (Authority) have
entered into a number of lease agreements with the City of San Luis Obispo wherein the City is obligated to make all debt service
payments. The transactions between the Board/Authority have been eliminated from these financial statements.
Balanc e Balance Due Within
June 30, 2 024 Addi ti on s De du ctions June 3 0, 2025 One Year
Gove rnmental ac tivi ties:
2014 Leas e revenue bonds 6,085,000$ -$ (200,000)$ 5,885,000$ 205,000$
2018 Leas e revenue refu nding bonds 7,493,200 - (618,975) 6,874,225 648,450
2023 Leas e revenue refu nding bonds 1,920,000 - (280,000) 1,640,000 290,000
Add: Un amortize d bond premiu m 1,062,295 - (95,339) 966,956 -
Total revenue bonds 16,560,495 - (1,194,314) 15,366,181 1,143,450
Le ase lia bilit y 429,171 - (152,725) 276,446 143,768
Su bscrip tion based I.T. agreeemnts 321,349 - (246,637) 74,712 51,516
Total lo ng-term debt,
governmental activities 17,311,015$ -$ (1,593,676)$ 15,717,339$ 1,338,734$
Co mp ensated abs ences 4,449,948$ 5,479,971$ (5,259,892)$ 4,670,027$ 3,269,019$
Business-type acti vi ties :
2018 Leas e revenue refu nding bonds 3,946,800$ -$ (326,025)$ 3,620,775$ 341,550$
2018 W ater revenue refu nding bonds 7,365,000 - (520,000) 6,845,000 545,000
2023 Leas e revenue refu nding bonds 43,860,000 - (640,000) 43,220,000 680,000
Add: Un amortize d bond premiu m 4,965,712 - (234,959) 4,730,753 -
Total revenue bonds 60,137,512 - (1,720,984) 58,416,528 1,566,550
Su bscrip tion based I.T. agreeemnts 25,637 - (25,637) - -
Lo ans 138,064,103 19,479,561 (4,663,165) 152,880,499 4,819,807
In stallme nt sale a greements 2,869,551 - (541,575) 2,327,976 557,280
Total lo ng-term debt,
busin ess-type activities 201,096,803 19,479,561 (6,951,361) 213,625,003 6,943,637
Co mp ensated abs ences 915,977 978,808 (1,020,134) 874,651 612,256
Total Governme nt-wide 223,773,743$ 25,938,340$ (14,825,063)$ 234,887,020$ 12,163,646$
107
Page 311 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 19
Note 7:Long Term Debt (Continued)
Governmental Activities Summary:
Revenue Bonds
2014 Lease Revenue Bonds. In 2014, the Authority issued lease revenue bonds in the amount of $7,580,000 to finance the expansion
of the Los Osos Valley Road interchange at U.S. 101. The bonds bear interest from 3.00% to 4.00% and are due in annual installments
on November 1 through November 1, 2044 that range from $145,000 to $410,000. At June 30, 2025, the principal amount outstanding
on the bonds was $5,885,000.
In the Statement of Net Position, the 2014 bonds include the related unamortized premium which is being amortized and charged to
expense over the term of the 2014 bonds. At June 30, 2025, the unamortized premium was $157,567.
2018 Lease Revenue Refunding Bonds. In 2018, the Authority issued lease revenue bonds in the amount of $16,905,000 to advance
refund the outstanding 2005 revenue refunding bonds and the 2006 and 2009 lease revenue bonds, which were originally issued to
construct several high priority capital improvement projects and to finance the costs of acquisition and construction of public parking
facilities, and the public safety communications and emergency operations center project. Of the original bond issuance, $11,072,775
was used for financing governmental activities related to the original bonds and the remainder was used for business-type activities.
The bonds bear interest from 3.00% to 5.00% and are due in annual installments on June 1, through June 1, 2039 that range from
$255,000 to $1,250,000. At June 30, 2025, the principal amount outstanding that pertains to governmental activities was $6,874,225
of the total $11,440,000 outstanding.
In the Statement of Net Position, the 2018 bonds include the related unamortized premium which is being amortized and charged to
expense over the term of the 2018 bonds. At June 30, 2025, the unamortized premium for governmental activities was $706,886.
The refunding resulted in a difference of $374,404 between the reacquisition price and the net carrying value of the old debt and is
being amortized to expense through 2039. The City completed the refunding to reduce its total debt service payments over the
following 21 years by $3,838,338 and to obtain an economic gain of $2,960,278 (difference between the present values of the old
and the new debt service payments).
2023 Lease Revenue Refunding Bonds.On September 13, 2023, the San Luis Obispo Public Financing Authority issued
$45,780,000 in Lease Revenue Bonds with premium of $3,707,639 for the construction of the Cultural Arts District Parking Structure
and to refund the 2012 Lease Revenue Bonds. Debt service payments of approximately $2.8 million per year are expected to be
paid from revenues generated by the City’s Parking Fund through December 2053.Of the original bond issuance, $1,920,000 was
used for financing governmental activities related to the original bonds and the remainder was used for business-type activities. The
refunding of 2012 lease revenue bond reduced its total debt service payments over 7 years by $484,439 and to obtain an economic
gain of $56,492.
The bonds bear 5% interest and are due in annual installments on December 1 through December 1, 2053.In the Statement of Net
Position, the 2023 bonds include the related unamortized premium which is being amortized and charged to expense over the term
of the 2023 bonds. At June 30, 2025, the unamortized premium in the governmental activities was $99,503.
108
Page 312 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 21
Note 7:Long Term Debt (Continued)
Subscription Based Information Technology Arrangements
Application Software Technology (AST). AST arrangement is a five-year agreement, initiated on September 1, 2021 with an annual
payment of $20,400. The city has used a 2.88% for this arrangement based on similar debt during the same fiscal year. There are no
options to extend the arrangement or purchase the software.The agreement was paid off during fiscal year 2025.
eScribe. eScribe arrangement is a three-year arrangement, initiated on February 17, 2021. The city pays the vendor $18,110 annually
with 2.5% increase. The city has used a 2.85% for this arrangement based on similar debt during the same fiscal year. The
arrangement will automatically renew for an additional Term unless notice of cancellation is received 60 days prior to the expiration
of the Term.
ESRI ArcGIS Online. ESRI ArcGIS Online arrangement is a three-year arrangement, initiated on July 8, 2020. The payment amount
on the city is based on the price of quote. The city has used a 2.85% for this arrangement based on similar debt during the same fiscal
year.The city decided to sign another three-year renewal for the arrangement until July 6, 2026.
Office 365. Office 365 arrangement is a three-year agreement, initiated on July 1, 2022 with an annual payment of $189,126. The
city has used a 2.85% for this arrangement based on similar debt during the same fiscal year. An extended term feature that allows
Online Services to continue month-to-month is available.The city allocates this arrangement for both governmental and business
entity funds. The agreement was paid off during fiscal year 2025.
At June 30, 2025, the aggregate maturities of the aforementioned subscription based I.T. agreements were as follows:
Fo r the Ye ar Ending June 30,Principa l Inte re st Total
2026 51,516$ 1,912$ 53,428$
2027 13,681 456 14,137
2028 9,515 96 9,611
74,712$ 2,464$ 77,176$
109
Page 313 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 22
Note 7:Long Term Debt (Continued)
Business-Type Activities Summary:
Revenue Bonds
2018 Lease Revenue Refunding Bonds. In 2018, the Authority issued lease revenue bonds in the amount of $16,905,000 to advance
refund the outstanding 2005 revenue refunding bonds and the 2006 and 2009 lease revenue bonds, which were originally issued to
construct several high priority capital improvement projects and to finance the costs of acquisition and construction of public parking
facilities, and the public safety communications and emergency operations center project. Of the original bond issuance, $5,832,225
was used for financing business-type activities related to the original bonds and the remainder was used for governmental activities.
The bonds bear interest from 3.00% to 5.00% and are due in annual installments on June 1, through June 1, 2039 that range from
$255,000 to $1,250,000. At June 30, 2025, the principal amount outstanding that pertains to business-type activities was $3,620,775
of the total $11,440,000 outstanding.
In the Statement of Net Position, the 2018 bonds include the related unamortized premium which is being amortized and charged to
expense over the term of the 2018 bonds. At June 30, 2025, the unamortized premium that pertains to business-type activities was
$372,330.
The refunding resulted in a difference of $374,404 between the reacquisition price and the net carrying value of the old debt and is
being amortized to expense through 2039. The City completed the refunding to reduce its total debt service payments over the next
21 years by $3,838,338 and to obtain an economic gain of $2,960,278 (difference between the present values of the old and the new
debt service payments).
2018 Water Revenue Refunding Bonds. In 2018, the City issued water revenue refunding bonds the in the amount of $10,095,000
to refund the 2006 water revenue bonds, which were originally issued to fund improvements to the water treatment plant. The bonds
bear interest from 4% to 5% and are due in annual installments on June 1 through June 1, 2035 that range from $455,000 to $845,000.
At June 30, 2025, the principal amount outstanding on the bonds was $6.845.000.
The City has pledged future water system revenues, net of specific operating expenses, to repay the bonds on parity with a pledge
that services all parity obligations. The bonds are payable solely from water customer net revenues and any moneys in the bond
service fund and the reserve fund. For the year ended June 30, 2025, principal and interest paid, and total customer net revenues
were $886,500 and $6,173,810, respectively. In the Statement of Net Position, the bonds include the related unamortized premium
which is being amortized and charged to expense over the term of the bonds. At June 30, 2025, the unamortized premium was
$1,005,391.
2023 Lease Revenue Refunding Bonds. On September 13, 2023, the San Luis Obispo Public Financing Authority issued
$45,780,000 in Lease Revenue Bonds with premium of $3,707,639 for the construction of the Cultural Arts District Parking Structure
and to refund the 2012 Lease Revenue Bonds. Debt service payments of approximately $2.8 million per year are expected to be
paid from revenues generated by the City’s Parking Fund through December 2053. Of the original bond issuance, $43,860,000 was
used for financing the construction of the Cultural Arts District Parking Structure and the remainder was used for governmental-type
activities.
At June 30, 2025, the principal amount outstanding on the bonds was $43,220,000 with unamortized premium of $3,355,032.
110
Page 314 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 23
Note 7:Long Term Debt (Continued)
At June 30, 2025, the aggregate maturities of the business-type revenue bonds were as follows:
Loans
2001 CIEDB State Loan. In 2001, the City obtained a note in the amount of $7,765,900 to go towards expanding the Marsh Street
parking structure. The note bears an interest rate of 3.37% due in semi-annual installments on February 1 and August 1 through
August 31, 2031 that range from $169,000 to $396,000. At June 30, 2025, the principal amount outstanding on the loan was
$2,537,058.
2009 Infrastructure and Economic Development Bank Loan–Tank Farm Lift Station. In 2009, the City obtained a note in the
amount of $10,000,000 to go towards the Tank Farm lift station and main sewer project. The note bears an interest rate of 3.25%
due in annual installments on December 1 through December 1, 2037 that range from $212,600 to $520,744. At June 30, 2025, the
principal amount outstanding on the loan was $5,627,721.
The City has pledged future sewer system revenues, net of specific operating expenses, to repay the loan. The loan is payable solely
from sewer customer net revenues. For the year ended June 30, 2025, principal and interest paid, and total customer net revenues
were $549,999 and $14,744,737, respectively.
2018 Clean Water State Revolving Fund Loan.In 2018, the City Council approved the Clean Water State Revolving Fund loan
agreement between the City of San Luis Obispo and the California State Water Resources Control Board for a $140 million loan for
the Water Resource Recovery Facility Project. The City will receive $4 million in principal forgiveness and the remaining $136
million will be repaid over 30 years. The applicable interest rate was set at 1.8%. As of June 30, 2025, the City had fully drawn down
the loan and had an outstanding principal balance of $134,230,838.The loan requires a $4.9 million reserve, which is reflected in
the Sewer Fund.
2020 CIEDB State Loan. In 2020, the City obtained a note in the amount of $14,300,000 for improvements to the City’s Water
Treatment Plant to provide enhanced reliability and energy and operational efficiencies. The note bears an interest rate of 2.5% and
a term of 20 years. At June 30, 2025, the City had partially drawn down the loan and had an outstanding principal balance of
$10,484,882.
Fo r the Ye ar Ending June 30,Principa l Int erest Total
2026 1,566,550$ 2,640,122$ 4,206,672$
2027 1,528,225 2,560,920 4,089,145
2028 1,603,575 2,483,633 4,087,208
2029 1,687,375 2,402,455 4,089,830
2030 1,786,175 2,317,086 4,103,261
2031-2035 10,260,975 10,161,916 20,422,891
2036-2040 6,827,900 7,952,613 14,780,513
2041-2045 7,965,000 6,150,125 14,115,125
2046-2050 10,225,000 3,888,125 14,113,125
2051-2054 10,235,000 1,055,625 11,290,625
Subtotal 53,685,775 41,612,620 95,298,395
Una mo rtized bond Premium 4,730,753 - 4,730,753
Total 58,416,528$ 41,612,620$ 100,029,148$
111
Page 315 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 24
Note 7:Long Term Debt (Continued)
At June 30, 2025, the aggregate maturities of the aforementioned business-type loans were as follows:
Installment Sale Agreements
US Bancorp 2014 Wastewater Lease. In 2013, the Board entered into an installment sale contract financing $7,479,000 to finance
the acquisition and installation of improvements to its water reclamation facility. The note bears an interest rate of 2.8994% due in
annual installments on June 1 and December 1 through December 1, 2028 that range from $372,900 to $607,200. At June 30, 2025,
the principal amount outstanding on the loan was $2,327,976.
At June 30, 2025, the aggregate maturities of the aforementioned business-type installment sale agreements were as follows:
There are a number of limitations and restrictions contained in the various bond indentures. City management believes that the City
has complied with the indenture requirements. Security for revenue bonds is paid from receipts or net income and amounts in funds
or accounts established under bond indentures.
Special Assessment Debt Without City Commitment
Special assessment districts have been established in various parts of the City to provide improvements to properties located in those
districts. Properties in these districts are assessed for the cost of improvements; these assessments are payable solely by property
owners over the term of the debt issued to finance these improvements. The City is not legally or morally obligated to pay these
debts or be the purchaser of last resort of any foreclosed properties in these special assessment districts, nor is it obligated to advance
City funds to repay these debts in the event of default by any of these districts. At June 30, 2025, the balances of these Districts’
outstanding debt were as follows:
City of San Luis Obispo Community Facilities District No.2019-1 Special Tax Bonds, Series 2021 $19,380,000
Fo r the Ye ar Ending June 30,Principa l Int erest Total
2026 4,819,807$ 2,834,415$ 7,654,222$
2027 4,876,710 2,777,171 7,653,881
2028 4,978,670 2,674,856 7,653,526
2029 5,082,886 2,570,275 7,653,161
2030 5,189,409 2,463,375 7,652,784
2031-2035 26,366,685 10,685,671 37,052,356
2036-2040 26,329,470 7,981,846 34,311,315
2041-2045 23,425,966 5,583,026 29,008,992
2046-2050 25,611,581 3,397,410 29,008,992
2051-2054 26,199,315 1,007,879 27,207,194
152,880,499$ 41,975,923$ 154,009,201$
Fo r the Year En di ng J une 30,Principal In te res t Total
2026 557,280$ 59,431$ 616,711$
2027 573,441 43,035 616,476
2028 590,071 26,164 616,235
2029 607,184 8,804 615,988
2,327,976$ 137,434$ 2,465,410$
112
Page 316 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 25
Note 8:Pension Plans
The City contributes to the California Public Employees’ Retirement System (CalPERS) for its employees. The City participates in
one agent multiple-employer plan for its miscellaneous employees (Miscellaneous Plan) and one cost-sharing multiple-employer
plan for its safety employees (Safety Plan). The Miscellaneous Plan is described in the first section of the footnote under Agent-
Multiple Employer Plan and the Safety Plan follows and is described in the second section of the footnote under Cost-Sharing
Employer Plan. A summary of the government-wide balances for all Plans at June 30, 2025 are as follows:
Agent-Multiple Employer Plan
General Information about the Pension Plan
Plan Descriptions. As noted above, the City contributes to CalPERS for a defined benefit pension plan for all qualified permanent
and probationary employees. CalPERS acts as a common investment and administrative agent for its participating member
employers. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available
reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information
that can be found on the CalPERS website.
Benefits Provided. CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits
to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year
of full-time employment for Tier 1 employees. Tier 2 and PEPRA employees are based on a three-year average of full time
employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members
are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death
Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for the plan are
applied as specified by the Public Employees’ Retirement Law.
The Miscellaneous Plan’s provisions and benefits by tier in effect at June 30, 2025, are summarized as follows:
Ne t Pe ns io n De ferre d Outflows De fe rre d Inflows Pe ns ion
Liabilit y of Re sourc es of Re sourc es Expense
Mi scellaneous Plan 93,797,071$ 22,282,043$ -$ 15,424,028$
Safety Plan 84,198,128 28,874,744 4,357,953 14,946,585
Total Government-Wide 177,995,199$ 51,156,787$ 4,357,953$ 30,370,613$
Pri or to On o r aft er On o r aft er
Hire dat e Decembe r 6, 2 012 De cembe r 6, 2 012 Januar y 1 , 2 013
Be ne fit formul a 2.7% @ 5 5 2% @ 6 0 2% @ 6 2
Be ne fit ve sting s chedul e 5 ye ar s service 5 ye ar s service 5 ye ar s service
Be ne fit payme nt s mo nthl y f or life mo nthl y f or life mo nthl y f or life
Re tirement age 50 - 55 50 - 63 52 - 67
Mo nthl y be ne fits, as a % o f
e ligible compens at ion 2.0% to 2.7% 1.092% t o 2.418% 1.0% to 2.5%
Re qui red e mpl oyee contribut ion rat es 7.520%7.520%7.00%
Re qui red e mpl oyer contribut ion rat es 10.530%10.530%10.530%
Re qui red unf unde d ac crued l iabi lity payme nt - (1)- (1)6,938,929$
(1) -Combine d with o n o r af ter Januar y 1 , 2 013
Tiers within the Mi scel lane ous Plan
113
Page 317 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 26
Note 8:Pension Plans (Continued)
While the City's Miscellaneous Plan is not closed to new entrants, the component option of 2.7% @ 55 is closed to new entrants.
Classic Members as defined by CalPERS entering the City's Miscellaneous Plan would enter the 2% @ 60 option while New
Members as defined by CalPERS entering the City Miscellaneous Plan would enter the 2% @ 62 option.
Employees Covered. As of the measurement date June 30, 2024, the following employees were covered by the benefit terms for the
Miscellaneous Plan:
Contributions. Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates
for all public employers be determined on an annual basis by the actuary and shall be effective on July 1 following notice of a change
in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially
determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an
additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially
determined rate and the contribution rate of employees. Employees that are classified as unrepresented management or unrepresented
confidential contribute 1.5% of pay toward the cost of the City’s share of the annual required contribution.During the measurement
period, the City contributions totaled $12,983,364.
Net Pension Liability
The City’s net pension liability for the Miscellaneous Plan is measured as the total pension liability, less the pension plan’s fiduciary
net position. The net pension liability of the Plan is measured as of June 30, 2024, using an annual actuarial valuation as of June 30,
2023 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability
is shown below.
Actuarial Assumptions. The total pension liability in the June 30, 2023 actuarial valuation was determined using the following
actuarial assumptions:
Mi scel lane ous Pl an
Inac tive empl oyees or bene ficiaries
c ur rently r eceiving be ne fits 505
Inac tive empl oyees entitled t o but
no t ye t receiving be ne fits 475
Ac tive empl oyees 351
Total 1,331
Va luat ion Date
Meas ur ement Date
Ac tuar ial Co st Method
Ac tuar ial As sumptions:
Di scount Rat e
Inf lation
Sal ar y Inc rease
Mortality (1)
Post Re tirement Be ne fit Inc rease
(1) The mortalit y table used was developed ba sed on CalPERS-specific data. The probabilitie s of mor talit y are based on the 2021
CalPERS Expe rience Study and revie w of Acturial Assumptions . Mortalit y rate inc orporate full gene rationa l morta lit y improve me nt using
80% of Scale MP-2020 publis hed by the Soc ie ty of Actua ries. For more details on this table , please refer to the 2021 CalPERS
Experience Study report from Nove mvbe r 2021 tha t can be found on the CalPERS website.
Th e lesser of contract COLA o r 2.30% unt il Purchas ing P ower
Protection Allowanc e Fl oor on P ur chas ing P ower appl ies, 2.3 0%
De rived us ing Cal PERS' Me mbe rship Data f or al l Funds
Varies by Ent ry Age and Se rvice
2.30%
6.90%
Entry-Age No rmal Co st Me thod
June 3 0, 2 024
Mi scel lane ous Pl an
June 3 0, 2 023
114
Page 318 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 27
Note 8:Pension Plans (Continued)
Discount Rate. The discount rate used to measure the total pension liability for the Plan was 6.90%. The projection of cash flows
used to determine the discount rate for each Plan assumed that contributions from all plan members in the Public Employees
Retirement Fund (PERF) will be made at the current member contribution rates that contributions from employers will be made at
statutorily required rates, actuarially determined. Based on those assumptions, each Plan's fiduciary net position was projected to be
available to make all projected future benefit payments of current plan members for all plans in the PERF. Therefore, the long-term
expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension
liability for the Plan.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-
estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are
developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the
expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used
to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-
term projected portfolio return.
The table below reflects the long-term expected real rate of return by asset class.
As sume d
As se t
Asse t Class Allocation Re al Return (1) (2)
Gl obal Equity - Cap-weighted 30.0%4.54%
Gl obal Equity - Non-Cap-weighted 12.0%3.84%
Private Equity 13.0%7.28%
Treasury 5.0%0.27%
Mortgage -backed Securities 5.0%0.50%
Inv estme nt Grade Corporates 10.0%1.56%
Hi gh Yi eld 5.0%2.27%
Emergi ng Market Debt 5.0%2.48%
Private Debt 5.0%3.57%
Real Assets 15.0%3.21%
Le verage -5.0%-0.59%
Misce llaneous Plan
115
Page 319 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 28
Note 8:Pension Plans (Continued)
Changes in the Net Pension Liability
The changes in the Net Pension Liability for the Miscellaneous Plan follows:
Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents the net pension liability of the
City for the Plan, calculated using the discount rate for each Plan, as well as what the City’s net pension liability would be if it were
calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
Pension Plan Fiduciary Net Position. Detailed information about the pension plan’s fiduciary net position is available in the
separately issued CalPERS financial reports.
Plan Net
Tot al Fi du ciary Pens ion
Pension Ne t Li ability/
Li ability Position (As set)
Balance at June 3 0, 2 023(me as ur ement date)271,720,540$ 176,934,611$ 94,785,929$
Service cost 5,225,836 - 5,225,836
In teres t on the total p ens io n lia bilit y 18,772,636 - 18,772,636
Differences b etween expected and
actual exp erie nce 5,864,043 - 5,864,043
Co ntrib ution - emp lo yer - 11,026,090 (11,026,090)
Co ntrib ution - emp lo yee - 2,974,063 (2,974,063)
Net in ves tment in come - 16,995,192 (16,995,192)
Be nefit p ayme nts , including re funds
o f emp lo yee contrib utions (16,260,601) (16,260,601) -
Adminis trative expense - (143,972) 143,972
Ne t changes 13,601,914 14,590,772 (988,858)
Balanc e at June 3 0, 2 024 (measurement date)285,322,454$ 191,525,383$ 93,797,071$
Mi scel lane ous Pl an
1% De crease 5.90%
Ne t Pension Li abi lity 130,213,879$
Cur rent Di scount Rate 6.90%
Ne t Pension Li abi lity 93,797,071$
1% Inc rease 7.90%
Ne t Pension Li abi lity 63,685,031$
116
Page 320 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 29
Note 8:Pension Plans (Continued)
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2025, the City’s pension expense for the Miscellaneous Plan was $15,424,028. At June 30, 2025, the
City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
The deferred outflows of resources related to contributions subsequent to the measurement date of $12,983,365 will be recognized
as a reduction of the net pension liability in the year ended June 30,2026. Other amounts reported as deferred outflows of resources
and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Payable to the Pension Plan
At June 30, 2025, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the
year ended June 30, 2025.
Cost-Sharing Employer Plan
General Information about the Pension Plan
Plan Descriptions. As noted above, the City contributes to CalPERS for a defined benefit pension plan for all qualified permanent
and probationary employees. CalPERS acts as a common investment and administrative agent for its participating member
employers. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available
reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information
that can be found on the CalPERS website.
De fe rre d Outflows De ferre d Inflows
of Resourc es of Re sourc es
Pension contr ibuti ons subsequent to
measurement date 12,983,365$ -$
Change s in assump ti ons 738,515 -
Di fferenc es between expected and
actua l experiences 5,948,958 -
Ne t diffe rences between projected and
actua l earnings on plan i nv estme nts 2,611,205 -
Total 22,282,043$ -$
Mis ce llaneous Plan
Me as ur ement Period
En ded June 3 0 Amount
2025 3,898,053$
2026 6,610,849
2027 (233,640)
2028 (976,584)
2029 -
9,298,678$
Mi scellaneous Plan
117
Page 321 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 30
Note 8:Pension Plans (Continued)
The City participates in five tiers of the safety cost-sharing multiple-employer plan. The Safety Plan tiers consist of Safety Tier 1
(police and fire), Police Tier 2, Fire Tier 2, Police PEPRA and Fire PEPRA.
Benefits Provided. CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits
to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year
of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits.
All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: The
Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for
each plan are applied as specified by the Public Employees’ Retirement Law.
The Plan’s provisions and benefits within each tier in effect at June 30, 2025, are summarized as follows:
The Safety Tier 1 is closed to new entrants.
Contributions. Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates
for all public employers be determined on an annual basis by the actuary and shall be effective on July 1st following notice of a
change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30th by CalPERS.
The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the
year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between
the actuarially determined rate and the contribution rate of employees. Members of the Police Officers Association contribute 3% of
pay toward the cost of the City's share of the annual required contribution. Members of the International Association of Firefighters,
Local 3523 contribute 3% of pay toward the cost of the City’s share of the annual required contribution.
For the year ended June 30, 2025, the contributions recognized as part of net pension liabilities were $10,004,005.
Pol ice Fi re Police Fire
Pri or to Prior to On o r aft er On o r aft er
Hire dat e De cembe r 6, 2 012 Au gust 30, 2012 Decembe r 6, 2 012 Au gust 30, 2 012
Bene fit formula 3.0% @ 5 0 3.0% @ 5 0 2.0% @ 5 0 3.0% @ 5 5
Bene fit vesting s chedul e 5 ye ar s service 5 ye ar s service 5 ye ars service 5 ye ar s service
Bene fit payments mont hly f or life mo nthly for life monthly fo r life monthly fo r life
Re tirement age 50 - 55 50 - 55 50-55 50 - 55
Monthl y bene fits, as a % of eligible compe ns at ion 3.00%3.00%2.0% to 2.7 %2.4% to 3%
Requi red e mpl oyee contribut ion rates 8.990%8.990%8.950%8.990%
Requi red e mpl oyer contribut ion rat es 25.640%29.090%21.780%24.790%
Requi red unfunde d accrued l iabi lity payme nt 6,359,352$ -$ (1)-$ -$
Pol ice PEPRA Fi re PEPRA
On o r aft er On o r aft er
Hire dat e Januar y 1 , 2013 Januar y 1 , 2 013
Bene fit formula 2.7% @ 5 7 2.7% @ 5 7
Bene fit vesting s chedul e 5 ye ar s service 5 ye ar s service
Bene fit payments mo nt hly f or life monthly for life
Retirement age 50-57 50-57
Monthl y bene fits, as a % of eligible compe ns at ion 2.0% to 2.7%2.0% t o 2.7%
Requi red e mpl oyee contribut ion rates 13.750%13.750%
Requi red e mpl oyer contribut ion rat es 14.500%14.500%
Requi red unfunde d accrued l iabi lity payme nt -$ -$
(1) - Co mb in ed wit h Police Tier 1
Safe ty Tier 1 Safe ty Tier 2
118
Page 322 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 31
Note 8: Pension Plans (Continued)
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2025, the City reported a net pension liability for its proportionate share of the Plan’s net pension liability of
$84,198,128.
The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension
liability of the Plan is measured as of June 30, 2024, and the total pension liability for the Plan used to calculate the net pension
liability was determined by an actuarial valuation as of June 30, 2023 using standard update procedures. The City’s proportion of
the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the
projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension
liability as of the measurement dates of June 30, 2023 and 2024 was as follows:
For the year ended June 30, 2025, the City recognized pension expense of $14,946,585 for the Safety Plan. At June 30, 2025, the
City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Proportionate Share
Percentage share at 6/30/2023 0.69198%
Percentage share at 6/30/2024 0.69428%
Change - Increase/(Decrease) 0.00229%
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 11,061,415$ -$
Changes in assumptions 2,074,469 -
Differences between expected and actual experiences 6,871,316 223,416
4,069,754 -
Net Difference between employer's contributions and
proprtionate chare of contributions 4,797,790 -
Change in employer's proportion -4,134,537
Total 28,874,744$ 4,357,953$
Differences between projected and actual investment earnings
Safety Plan
119
Page 323 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 32
Note 8:Pension Plans (Continued)
Pension contributions subsequent to the measurement date of $11,061,415 are reported as deferred outflows of resources and will
be recognized as a reduction of the net pension liability in the year ended June 30,2026. Other amounts reported as deferred outflows
of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Actuarial Assumptions. The total pension liabilities in the June 30, 2023,actuarial valuations for the Safety Plan was determined
using the following actuarial assumptions:
Discount Rate. The discount rate used to measure the total pension liability for the Plan was 6.90%. The projection of cash flows
used to determine the discount rate for the Plan assumed that contributions from all plan members in the Public Employees
Retirement Fund (PERF) will be made at the current member contribution rates that contributions from employers will be made at
statutorily required rates, actuarially determined. Based on those assumptions, each Plan's fiduciary net position was projected to be
available to make all projected future benefit payments of current plan members for all plans in the PERF. Therefore, the long-term
expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension
liability for each Plan.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-
estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are
developed for each major asset class.
Me asure me nt Pe riod
Ende d June 30 Amount
2025 4,592,464$
2026 10,073,241
2027 182,156
2028 (1,392,485)
13,455,376$
Safe ty Plan
Valuat ion Dat e
Measurement Dat e
Ac tuar ial Co st Method
Ac tuar ial As sumptions:
Discount Rate
Inf lation
Salar y Inc reases
Post Re tirement Bene fit Inc rease
Mortality (1)
Va ries by Ent ry Age and Se rvice
Co nt ract COLA up t o 2.30% unt il Purchas ing P ower Protection
Al lowanc e Fl oor on P ur chas ing P ower applies
Derived using CalPERS' membe rship dat a for all funds
(1) The mo rtatily tabl e us ed was de ve lope d based o n Cal PERS-specific dat a. The rates incorporate Ge ne rational
Mortality to capt ur e ongo ing mo rtality improvement us ing 8 0% o f Sc ale MP 2 020 publ ished by t he So ciety o f
Ac tuar ies. Fo r mo re de tails on thi s tabl e, please refer to the 2021 expe rience study report that c an be found o n the
Ent ry-Age No rmal Co st Me thod
6.90%
2.30%
Safe ty P lan
June 3 0, 2 023
June 3 0, 2 024
120
Page 324 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 33
Note 8:Pension Plans (Continued)
In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the
expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used
to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-
term projected portfolio return.
The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital
market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative
expenses.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate. The following presents the City’s
proportionate share of the net pension liability, calculated using the discount rate for the Plans as well as what the City’s proportionate
share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage
point higher than the current rate:
Pension Plan Fiduciary Net Position. Detailed information about each safety plan’s fiduciary net position is available in the
separately issued CalPERS financial reports.
Payable to the Pension Plan
At June 30, 2025, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the
year ended June 30, 2025
As sume d
Asse t
Asset Class Allocation Re al Re turn (1) (2)
Global Equity - Cap-weighted 30.0%4.54%
Global Equity - Non-Cap-weighted 12.0%3.84%
Private Equity 13.0%7.28%
Treasury 5.0%0.27%
Mortgage-backed Securities 5.0%0.50%
Investme nt Grade Corporates 10.0%1.56%
High Yi eld 5.0%2.27%
Emerging Market Debt 5.0%2.48%
Private Debt 5.0%3.57%
Real Assets 15.0%3.21%
Le verage -5.0%-0.59%
(1) An expected inflation of 2.30% used for thi s period
(2) Figur es are based on the 2021-22 Asset Liability Ma nage me nt Study
Safety Plan
1% Decrease 5.90%
Ne t Pension Liabi lity 119,717,528$
Current Discount Rate 6.90%
Ne t Pension Liabi lity 84,198,128$
1% Inc rease 7.90%
Ne t Pension Liabi lity 55,148,252$
121
Page 325 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 34
Note 8:Pension Plans (Continued)
Defined Contribution Pension Plan
The City makes bi-weekly contributions to a 401a retirement plan (Plan) for each department head. The current contribution on
behalf of each Participant equals 1% of base earnings up to the maximum allowable by law. In addition, each Participant may
contribute up to 14% of earnings to the Plan. Prior to August 2018, non-department head management employees also participated
in the Plan and received a 1% employer contribution.
Employees are fully vested in the City’s contributions (and interest allocated to the employee’s account) at all times. The Plan is
administered by Public Agency Retirement Services (PARS). The Plan assets are held in trust for the exclusive benefit of the
Participants or their Beneficiaries. The City has the right at any time to terminate the Plan by resolution of the City Council.
During the fiscal year, the City contributed $22,462 to the Plan and Participants contributed $79,309. T here were no Plan forfeitures.
As of June 30, 2023, the City had $0 payable to the Plan.
The City makes bi-weekly contributions to 401a retirement plans (Appointed Officials Plans) for the City Manager and City
Attorney.
Employees are fully vested in the City’s contributions (and interest allocated to the employee’s account) at all times. The Appointed
Officials Plans are administered by Mission Square Retirement. The Plan assets are held in trust for the exclusive benefit of the
Participants or their Beneficiaries. The City has the right at any time to terminate the Plan by resolution of the City Council.
During the fiscal year, the City contributed $22,348 to the Appointed Officials Plans. There were no Plan forfeitures. As of June 30,
2023, the City had $0 payable to the Plan.
In the year 2022, The City evaluated the requirements of GASB Statement No. 97, Certain Component Unit Criteria, and Accounting
and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans and determined that plan didn’t meet
the criteria to be reported as a fiduciary activity, as required by the above mentioned GASB Statements.
Note 9:Other Post-Employment Benefits (OPEB)
General Information about OPEB
Plan Description. The City’s primary other post-employment benefits (OPEB) cost obligation is for retiree health benefits under its
election to participate in the CalPERS Health Benefit Program, an agent multiple-employer defined benefit OPEB plan, under the
“unequal contribution option.” The City entered the CalPERS medical insurance program in 1993 under the Public Employees’
Medical and Hospital Care Act (PEMHCA). During the fiscal year ended June 30, 2009, the City entered into an agreement to
participate in an irrevocable trust to provide a funding mechanism for retiree health benefits. The Trust, California Employers’
Retiree Benefit Trust (CERBT), is administered by CalPERS and managed by a separately appointed board, which is not under
control of the City Council. This Trust is not considered a component unit of the City.
Benefits Provided. The City provides post-employment heath care insurance, in accordance with Memorandums of Understanding,
to all employees who retire from the City upon or after attaining age 50 with at least 5 years of service or disability retirement.
Miscellaneous retires who are PEPRA new hires are eligible at age 52. For each retiree enrolled in a CalPERS medical plan, the
employer will pay the required statutory PEMHCA minimum, which is $157 per month per retiree in calendar year 2024 and $158
per month per retiree in calendar year 2025. This amount will increase with the health care component of CPI, as announced by the
CalPERS Board each year. The retiree must pay the difference between the premium amount, which depends upon the medical plan
benefits selected, and the employer-paid minimum. In addition, the City pays 50% of the premium up to the retiree’s age of 65 for
one grandfathered executive management retiree hired prior to August 2000.
There is no OPEB provided to terminated vested employees. The employer-paid amount will continue to a surviving spouse if the
retiree elects a CalPERS survivor annuity. There are no required employee contributions, although the retiree must pay the difference
between the premium and the employer-paid amount. The employer is contributing the full Actuarially Determined Contribution.
122
Page 326 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 35
Note 9:Other Post-Employment Benefits (OPEB) (Continued)
Employees Covered. At June 30, 2024, the measurement date, the following number of employees were covered by the benefit terms:
Contributions. The contribution requirements of the plan members and the City are established and may be amended by the City.
The City prefunds the plan through CERBT by contributing at least 100% of the annual required contribution. For the measurement
period, the City’s contributions totaled $740,550.
Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2024 and the total OPEB liability used to the calculate the net OPEB
liability was determined by an actuarial valuation dated June 30, 2023,based on the following actuarial methods and assumptions:
Discount Rate. The discount rate used to measure the total OPEB liability was 6.25%. The projection of cash flows used to determine
the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based
on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments
for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan
investments was applied to all periods of projected benefit payments to determine the total OPEB liability.
OP EB P lan
Inac tive empl oyees or bene ficiaries
cur rently receiving be ne fits 184
Inac tive empl oyees entitled to but
no t ye t receiving be ne fit payme nt s 255
Ac tive empl oyees 477
Total 916
Ac tuar ial Valuation Dat e June 30, 2023
Measurement Dat e June 30, 2024
Contribut ion P olicy Co nt ributes full AD C
Ac tuar ial Assumpt ions:
Dis count Rate and 6.25% at June 3 0, 2 024 and 6.2 5% at June 30, 2 023
expe cted Long-Te rm Rat e of Expe cted City contributions pr ojected to ke ep
Re turn o n Assets s uf ficient pl an as sets to pay al l bene fits from t rust
Gene ral Inf lation 2.50% annually
Mo rtality, Retirement, Disability,Rates from CalPERS 2 000-2019 Expe rience St udy
Te rmination
Mo rtality Impr ovement Post-retirement mo rtality pr ojected fully ge nerational with
Sc ale MP-2021
Salary Inc reases Ag gr egate - 2.75%
Me rit - CalPERS 2000-2019 Experience Study
Medical Tr end No n-Me di care - 8.5% for 2025, decreasing t o an ultimate rate of 3.45%
in 2 076 and lat er years.
Me di care - 7.50% (no n-Kaiser) for 2025, decreasing to an ul timate rate
of 3.45% in 2076 and later ye ar s
Me di care - 6.25% (Kaiser) for 2025, de creasing to an ul timate rate
o f 3.45% in 2 076 and l at er ye ar s
P EMHCA Minimum Inc reases 3.50% annually
P articipat ion at Re tirement Cur rently c overed: 70% Currently wai ve d: 1 5%
OPEB P lan
123
Page 327 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 36
Note 9:Other Post-Employment Benefits (OPEB) (Continued)
Investments. The long-term expected rate of return on OPEB plan investments was determined using a building-block method in
which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for
each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future
real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates
of geometric real rates of return for each major asset class are summarized below:
Changes in the Net OPEB Liability
The changes in the net OPEB liability for the June 30, 2024 measurement date are as follows:
Curre nt Expecte d
Targe t Re al Rate
Asse t Class Alloc atio n of Return
Gl obal Equity 49%4.56%
Fixe d Inc ome 23%1.56%
TIPS 5%-0.08%
Commo di ti es 3%1.22%
REITs 20%4.06%
Assume d Long-Term Rate of Infl ation 2.50%
Expected Long-Term Net Rate of Retur n, Round ed 6.25%
The long-te rm expected real rates of return are presented as geometric means.
OPEB Plan
Total Plan Fiduciary Ne t
OPEB Li ability Ne t Pos ition OPEB Li ability
Balance at J une 3 0, 2 024 13,239,129$ 10,954,815$ 2,284,314$
Ch anges d urin g the year:
Serv ic e cos t 518,085 - 518,085
In teres t on the total OPEB lia bilit y 836,877 - 836,877
Co ntrib ution - emp lo yer - 740,550 (740,550)
Net in ves tment in come - 1,202,776 (1,202,776)
Be nefit p ayme nts , in cluding refu nds
o f emp lo yee contrib utions (734,364) - -
Admin is trative e xp ense (9,757) 9,757
Net changes 620,598 1,933,569 (578,607)
Balance at J une 3 0, 2 025 13,859,727$ 12,888,384$ 1,705,707$
124
Page 328 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 37
Note 9:Other Post-Employment Benefits (OPEB) (Continued)
Sensitivity of Net OPEB Liability to Changes in the Discount Rate. The following presents the net OPEB liability at the current
discount rate, as well as what the net OPEB liability would be if it were calculated using a hypothetical discount rate that is one
percentage point lower or one percentage point higher than the current rate.
Sensitivity of Net OPEB Liability to Changes in Healthcare Cost Trend Rates. The following presents the net OPEB liability at
current healthcare cost trend rates, as well as what the net OPEB liability would be if it were calculated using hypothetical healthcare
cost trend rates that are one percentage point lower or one percentage point higher than the current rate.
OPEB Plan Fiduciary Net Position. Detailed information about the OPEB Plan’s fiduciary net position is available in the separately
issued CalPERS financial reports on the CERBT.
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the year ended June 30, 2025, the City’s OPEB expense was $258,685. At June 30, 2025, the City reported deferred outflows of
resources and deferred inflows of resources related to OPEB from the following sources:
OP EB P lan
1% De crease 5.25%
Ne t OP EB Li abi lity 3,459,727$
Cur rent Discount Rat e 6.25%
Ne t OP EB Li abi lity 1,705,707$
1% Inc rease 7.25%
Ne t OP EB Li abi lity 241,939$
OP EB P lan
1% De crease
Net OP EB Li abi lity (65,207)$
Cur rent Tr end
Net OP EB Li abi lity 1,705,707$
1% Inc rease
Net OP EB Li abi lity 3,893,194$
De fe rred Outfl ows Defe rred Infl ows
of Re sources of Resources
OPEB contrib utions s ubsequent to
measurement date 1,975,082$ -$
Ch anges in assump tions 274,338 307,434
Diffe re nces b etween expected an d
a ctual exp erie nces 185,237 2,207,314
Ne t differe nces b etween projected an d
a ctual earnings o n plan investments 62,184 -
Total 2,496,841$ 2,514,748$
125
Page 329 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 38
Note 9:Other Post-Employment Benefits (OPEB) (Continued)
OPEB contributions subsequent to the measurement date of $1,975,082 are reported as deferred outflows of resources and will be
recognized as a reduction of the net OPEB liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:
Payable to the OPEB Plan
At June 30, 2025, the City reported a payable of $0 for the outstanding amount of contributions to the OPEB plan required for the
year ended June 30, 2025.
Note 10:Deferred Compensation Plan
All employees of the City are eligible to participate in a City sponsored deferred compensation plan (457 Plan). The 457 Plan
provides for the deferral of a portion of the employees’ compensation until retirement, termination, or certain other covered events.
The assets of the 457 Plan are held in trust for the exclusive benefit of Plan Participants or Beneficiaries.
Deferred contribution(s) by a participant in any taxable year will not exceed the lessor of (1) the applicable dollar amount provided
under Section 457(b)(2) of the Internal Revenue Code (adjusted for cost of living under Section 457(e)(15) of the Internal Revenue
Code), or (2) 100% of the participant’s includible compensation. A participant who has attained age 50 before the close of the
calendar year may elect Age 50 Plus Catch-up Contributions and commence making such contributions to his/her Participant Deferral
Account.
The City has the right at any time to terminate the 457 Plan by resolution of the City Council.
In the year 2022, The City evaluated the requirements of GASB Statement No. 97, Certain Component Unit Criteria, and Accounting
and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans and determined that plan didn’t meet
the criteria to be reported as a fiduciary activity, as required by the above mentioned GASB Statements.
Fis cal Year
Ended June 30 Amount
2026 (465,480)$
2027 (133,995)
2028 (341,973)
2029 (268,296)
2030 (210,109)
Thereafte r (573,136)
(1,992,989)$
126
Page 330 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 39
Note 11:Interfund Transactions
City had the following short-term interfund receivable and payable balances as of June 30, 2025:
City had the following long-term interfund receivable and payable balances as of June 30, 2025:
Interfund transfers for the year ended June 30,2025 consist of the following:
Short-term interfund receivables and payables include temporary negative cash balances that result from the timing of cash flows at
year end and the time lag between the dates that transactions are recorded in the accounting system and payment between funds are
made. Liquidation of interfund receivables and payables typically occurs in the first quarter of the subsequent fiscal year. Interfund
balances between governmental funds are not included in the government-wide Statement of Net Position.
Advances in the amount of $4,845,000 from the General Fund to the Parking Fund was a loan provided by the General Fund to the
Parking Fund for the acquisition of the property located at 1166 Higuera Street. The general fund will be reimbursed by the Parking
Fund at a rate of 2.88% and a repayment term of 30 years, with deferral of principal payments for three years and interest payments
starting immediately.
Interfund transfers are used to move revenues from the fund with collection authorization to the debt service fund as debt service
principal and interest payments become due or to move unrestricted revenues to finance various programs that the government must
account for in other funds in accordance with budgetary authorizations. This may include amounts provided as matching funds for
various grant programs.
Due from Other
Funds
Due to Other
Funds
Ge ne ral Fund 43,089$ -$
Nonmajor Governme nta l Fund s 67,478 110,567
Total 110,567$ 110,567$
Advance s from
Other Funds
Advances to
Other Funds
Ge ne ral Fund -$ 4,845,000$
Parking Fund 4,845,000 -
Total 4,845,000$ 4,845,000$
Non-Ma jor
Gene ral Capital Out lay Go vernme nta l
Transfe r Out Fund Fund Fund s Total
Ge ne ral Fund -$ 23,698,344$ 10,359,699$ 34,058,043$
Non-Ma jor Governme ntal Fund 2,614,610 345,107 - 2,959,717
Wa ter Fund 1,387,992 - - 1,387,992
Sewer Fund 1,451,616 - - 1,451,616
Parking Fund 375,212 - - 375,212
Total 5,829,430$ 24,043,451$ 10,359,699$ 40,232,580$
Transfer In
127
Page 331 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 40
Note 12:Joint Ventures, Jointly Governed Organizations and Operating Agreements
The City participates in three multi-governmental organizations: the Whale Rock Commission, the San Luis Obispo Regional Transit
Authority, and the San Luis Obispo Council of Governments. The City also has an operating agreement related to Nacimiento Water
Supply Project. The following provides a general description of each of these agencies and operating agreements along with a
summary of financial information and indebtedness:
Whale Rock Commission
General Description. The Whale Rock Commission (Commission) was established on December 12, 1960 to govern the operations
of the Whale Rock Reservoir. The Commission is composed of six voting members and two non-voting members: three voting
members are appointed by the City;one is appointed by California Polytechnic State University; one by California Men's Colony;
and one by the Director of Finance, State of California. The two non-voting members are position appointments: the Director of
Water Resources,State of California; and the Water Superintendent, City of San Luis Obispo. The Commission is authorized by its
respective agencies to establish policies for the operation of the Reservoir, to contract for the sale of excess water, and to approve
the annual budget.
The City, in accordance with established policies of the Commission, operates and maintains the Reservoir; prepares and
recommends the annual budget; and maintains the fiscal records and funds of the Commission. The Whale Rock Custodial Fund is
used to account for the Commission's ongoing operating activities. Ownership in the Reservoir is as follows: 55.05%, City of San
Luis Obispo; 33.71%, California Polytechnic State University; and 11.24%, California Men's Colony. The City's share of the
Commission's expenses is recorded as expenses of the Water Fund. All receipts and disbursements of the Commission are included
in an Custodial Fund.
Financial Information and Indebtedness. In 1959, the City issued general obligation bonds to secure a future water supply to City
residents. Some of the proceeds from the bonds were used to participate with the State of California in the development of the
Reservoir. Participation, which is in proportion to the original investment, includes continued operation and maintenance of the
facilities. Such indebtedness was directly attributable to provision of water service, and as such, all related indebtedness was recorded
in the City's Water Enterprise Fund. These bonds matured in August 1999.
The City's original investment in the Reservoir project aggregates $3,900,000 and was amortized on a straight-line basis over thirty-
five years. Separate financial statements are available from the Whale Rock Commission, 879 Morro Street, San Luis Obispo, CA
93401.
The following segment financial information for the Whale Rock Commission and the Water Fund’s related investment in the joint
venture is presented as of and for the year ended June 30, 2025:
Cit y's Inv estment
Joint Venture in Joint Venture
Total assets 7,411,147$ 4,079,835$
Total liabilities 163,072 89,771
Fund balance 7,248,075$ 3,990,064$
Total revenue s 3,130,087$ 1,723,113$
Total expenditur es 2,097,440 1,154,641
Excess of revenue s over expenditur es 1,032,647$ 568,472$
128
Page 332 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 41
Note 12:Joint Ventures, Jointly Governed Organizations and Operating Agreements (Continued)
San Luis Obispo Regional Transit Authority
General Description. The City is a member of the San Luis Obispo Regional Transit Authority (Authority), which was established
on February 27, 1990, to operate a joint public transportation system. The Authority is composed of the Cities of Arroyo Grande,
Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, and San Luis Obispo, as well as the County of San Luis Obispo.
The Authority is governed by a Board of Directors comprised of representatives of each of the seven cities, in addition to the five
members of the Board of Supervisors. Each member of the Board has one vote. The Board has the authority to establish policies for
the operation of the transit system and to adopt an annual budget. Each member makes an annual contribution to the agency for
funding the adopted budget.
Financial Information. The City allocates a portion of its Transportation Development Act funds directly to the Authority. During
2024-25 the City contributed approximately $1,237,660 of these funds to the Authority. The City's share of assets, liabilities, and
fund equity has not been calculated by the Authority and therefore is not known to the City; however, based on the City's limited
financial participation in the Authority, any such assets, liabilities, or equity are not believed to be significant to the basic financial
statements taken as a whole. Separate financial statements are available from the Authority, 179 Cross Street, Suite A, San Luis
Obispo, CA 93401.
San Luis Obispo Council of Governments
General Description. The San Luis Obispo Council of Governments (SLOCOG) was formed in 1968 through a joint powers
agreement among the incorporated cities and the County of San Luis Obispo. It acts as the regional transportation planning agency
for the county and is the metropolitan planning organization and the congestion management agency for the region. The governing
board consists of twelve delegates, each with one vote that includes the five members of the County Board of Supervisors and one
representative from each of the seven cities in the County.
Financial Information. A portion of the City's Transportation Development Act funds are directly allocated to the SLOCOG. The
City's share of assets, liabilities, and fund equity has not been calculated by SLOCOG and therefore is not known to the City;
however, based on the City's limited financial participation in SLOCOG, any such assets, liabilities, or equity are not believed to be
significant to the basic financial statements taken as a whole. Separate financial statements are available from SLOCOG, 1114 Marsh
Street, San Luis Obispo, CA 93401.
Nacimiento Water Supply Project
General Description. In 2004, the Council adopted a resolution approving an agreement with the San Luis Obispo County Flood
Control and Water Conservation District (District) for the design, construction, and operations of the facilities required for the
delivery of 5,482 acre-feet of water per year to the City of San Luis Obispo from the Nacimiento Water Supply Project (Project).
The agreement includes conditions relative to the costs associated with the project and how these costs will be shared and paid by
the participants in the project.
Each project participant, including the City, has entered into an agreement to provide for the development, financing, construction,
operation and maintenance of the Project. The agreement is a “take-or-pay” obligation: the City is obligated to pay amounts specified
in the agreement whether or not water is delivered. The City is required to pay an amount equal to its share of various capital expenses
relating to the funding of design costs, engineering, planning, environmental mitigation, equipping new facilities and/or construction
efforts, accounting services, project administration and management, installation, grading, razing and building the Project. The City
is also required to pay for its share of operating and maintenance costs. The City records these payments as operating expenses in its
water enterprise fund.
129
Page 333 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 42
Note 12:Joint Ventures, Jointly Governed Organizations and Operating Agreements (Continued)
The City is required to make payments under its agreement solely from the revenues of its water system. The City agreed to establish
and collect rates and charges from the customers of the City’s water enterprise fund at levels sufficient to produce revenues equal
to: (1) the costs of operating and maintaining the City’s water enterprise; plus (2) the contract payments, calculated in accordance
with the delivery contract including the amounts allocated as the City’s share of capital projects installment debt service; plus (3)
the coverage factor for the amounts allocated as the City’s share of capital projects installment debt service; and (4) under certain
circumstances, that the City understands and agrees that the delivery contract may impose a surcharge following the occurrence of
any payment default.
Financial Information. In September 2007, the District sold water revenue bonds in the amount of $196 million for the construction
of the Project. In addition, the District sold water revenue bonds in the amount of $182 million. These bonds were refinanced in
May 2018. Based on the City’s share of construction costs, debt service and operating and maintenance, the following summarizes
the City’s Project obligations for 2023-24 and five-year projections for the 2018 bonds that will remaining outstanding following
the refunding.
Separate financial statements are available from the San Luis Obispo County Flood Control and Water Conservation District, 1050
Monterey Street, San Luis Obispo, CA 93401.
Note 13:Risk Management
California Joint Powers Insurance Authority
The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 119 California
public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose
of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or
reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began
covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of
Directors. The Board operates through a nine-member Executive Committee.
Each member pays an annual contribution to cover estimated losses for the coverage period. This initial funding is paid at the
beginning of the coverage period. After the close of the coverage period, outstanding claims are valued. A retrospective deposit
computation is then conducted annually thereafter until all claims incurred during the coverage period are closed on a pool-wide
basis. This subsequent cost reallocation among members based on actual claim development can result in adjustments of either
refunds or additional deposits required.
The total funding requirement for self-insurance programs is estimated using actuarial models and prefunded through the annual
contribution. Costs are allocated to individual agencies based on exposure (payroll) and experience (claims) relative to other
members of the risk-sharing pool. Additional information regarding the cost allocation methodology is provided below.
Actual 2025 4,621,210$
Pro je cted:
2026 4,622,040
2027 4,615,840
2028 4,621,896
2029 4,622,732
2030-34 23,093,901
2035-39 23,104,565
2040-41 4,697,841
Nac imiento Wate r Suppl y Obl igati ons
130
Page 334 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 43
Note 13:Risk Management (Continued)
Self-Insurance Programs of the Authority
General Liability and Workers’ Compensation. The City is a member of the California Joint Powers Insurance Authority (CJPIA),
which provides joint protection programs and group purchased insurance for public entities covering liability, errors and omission
losses, auto liability, employment practices liability, crime, pollution, workers’ compensation injuries and coverage for city-owned
property. The City has a retained limit of $500,000 per occurrence for liability and no retained limit for workers’ compensation.
Liabilities of the City are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonable estimated.
Liabilities include an amount for claims that have been incurred but not reported (IBNR). The result of the process to estimate the
claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines and
damage awards. Accordingly, claims are re-evaluated periodically to consider the effects of economic and social factors. The
estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other
claim adjustment expenses regardless of whether or not they are attributable to specific claims. Estimated recoveries, for example
from salvage or subrogation, are another component of the claim’s liability estimate.
During the past three fiscal years, none of the protection programs experienced settlements or judgments that exceeded pooled or
insured coverage. There were also no significant reductions in pooled or insured coverage in 2024-25. CJPIA covers workers’
compensation claims up to a pooled limit of $1 million per occurrence and provides excess coverage to statutory limits with a group
purchased commercial insurance policy. The City pays an annual contribution to CJPIA and may share in any member refunds in
the event that pooled funding exceeds the cost of pooled claims and claim-related expenses, or the City may be required to pay
additional contributions based upon CJPIA’s operating results.
Financial statements of CJPIA may be obtained from its administrative office located at 8081 Moody Street, La Palma, California
90623, or by calling (562) 467-8700.
Additional claims and lawsuits have been filed against the City in the normal course of business. It is reasonably possible that the
City may be liable for claims not to exceed $500,000. In the opinion of management, the resolution of these matters will not have a
material adverse effect on the financial condition of the City.
Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded
pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage from coverage in 2024-
25.
Self-Insurance
The City retains the risk for workers’ compensation losses incurred prior to joining the California Joint Powers Insurance Authority.
Several member agencies of the now dissolved Central Coast Cities Self-Insurance Fund continue to participate in a non-risk sharing
arrangement for claims management and the purchase of excess insurance. The participating agencies share a set of common
guidelines and annually set aside premiums to pay their individual losses within their self-insured retentions. Losses are debited and
investment income is credited to specific member accounts. The City has not incurred any losses in excess of insurance coverage.
Claims liabilities in the governmental funds are generally liquidated by the General Fund.
131
Page 335 of 525
City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 44
Note 13:Risk Management (Continued)
The last actuarial study to determine the undiscounted outstanding claims liability was completed for the year ended June 30,2025.
The liability was estimated based on the actuarial study and considered claims asserted and paid, and the time limitations for filing
claims. There are no estimates for claims incurred but not reported because the time limit for filing claims has elapsed. The estimated
asset at June 30, 2025 is calculated as follows:
Note 14:Commitments and Contingencies
Litigation
The City is presently involved in certain matters of litigation that have arisen in the normal course of conducting City business. City
management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are adequately covered by
insurance and not expected to result in a material adverse financial impact on the City.
Grant Awards
Under the terms of Federal and State grants, audits may be required, and certain costs may be questioned as not being appropriate
expenditures under the terms of the grants. Such audits could lead to requests for reimbursement to the grantor agencies. City
management believes disallowances, if any, will be immaterial.
Self-i nsurance ac ti vi ty as of and for the year e nded J une 3 0, 2 025
is s umma rized i s as fol lows :
In teres t earnings 12,010$
Cla ims expense 23,067
Es tima ted lia bilit y fo r re ported claims a nd settlement expenses (510,635)
Assets o n deposit 535,138
Es tima ted unpaid c laims as set 24,503$
Chang es i n the bal ances of claim assets dur ing the pas t two fi scal years
ar e as fol lows :
Es tima ted unpaid c laims as set Ju ne 30, 2023 256,718$
Cla im p ayments a nd re la ted expenditures re imburseme nt (164,804)
Ch ange in estimated claims a sset Ju ne 30, 2024 52,030
In teres t earnings 14,417
Es tima ted unpaid c laims as set Ju ne 30, 2024 158,361
Cla im p ayments a nd re la ted expenditures re imburseme nt (176,862)
Ch ange in estimated claims a sset Ju ne 30, 2025 30,994
In teres t earnings 12,010
Es tima ted unpaid c laims as set Ju ne 30, 2025 24,503$
132
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City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 45
Note 14:Commitments and Contingencies (Continued)
Regional Transit Authority Pension Expense
The City is presently a member agency of the San Luis Obispo Regional Transit Authority (SLORTA) (see Note 14), a duly
established Joint Powers Authority (JPA) comprised of all local cities and the County of San Luis Obispo. The City’s contractual
contribution to that entity is approximately 18% of the total expense. The City was advised that the Regional Transit Authority was
working with CalPERS to determine whether it is required to enroll certain previously unenrolled transit employees in the CalPERS
pension system and whether the entity may be liable for obligations related to the failure to enroll those employees and make
contributions on their behalf. On December 10, 2019 the County Board of Supervisors approved a contract for participation of the
JPA in the San Luis Obispo County Pension Trust and the Employees Retirement Plan. The current amount of potential CalPERS
unfunded liability for the JPA may reach as high as $4 million. It is not anticipated that the City’s annual payment to the JPA will
increase to satisfy this unfunded liability.
Note 15:Construction and Other Significant Commitments
Construction and other significant commitments as of June 30, 2025, including encumbrances outstanding at year-end, are as follows:
Long-term construction contracts are billed and paid on a percentage completion basis by construction phase.
Note 16:Fund Balance Deficiency
As of June 30, 2025, the City had fund with negative fund balance for LOVR Sub-Area Fee Fund and Debt Service fund as below.
Note 17:New Accounting Standards
Accounting Standards Adopted
GASB Statement No. 102 –Certain Risk Disclosures –The primary objective of this Statement is to provide users of
government financial statements with essential information about risks related to a government’s vulnerabilities due to
certain concentrations or constraints.
Ge nera l Fu nd 2,559,825$
Sp ecial Revenue Fu nds 168,914
Ca pital Pro je ct Fu nds 22,947,269
En terpris e Fu nds:
Water 2,573,113
Sewe r 9,466,165
Parking 15,574,977
Transit 3,347,354
Total 56,637,617$
Funds De ficiency
LO VR Sub-Area Fee (2,452)$
De bt Service (43,089)
Total (45,541)$
133
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City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Page 46
Note 17:New Accounting Standards (Continued)
New Accounting Standards
The city is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following
GASB Statements:
GASB Statement No. 103 –Financial Reporting Model Improvements -The primary objective of this Statement is to
improve key components of the financial reporting model to enhance its effectiveness in providing information that is
essential for decision making and assessing a government’s accountability. This Statement also addresses certain
application issues.
GASB Statement No. 104 –Disclosure of Certain Capital Assets –The primary objective of this Statement is to provide
users of governmental financial statements with essential information about certain types of capital assets.
Note 18:Prior Period Adjustments
During 2025, the City recorded the following prior period adjustments:
(1)Error correction to Debt Service Fund, Water Fund, Sewer Fund and Parking Fund -Beginning fund balance of the Debt
Service Fund, Water Fund, Sewer Fund and Parking fund were restated due to the reclassification of prior year debt services interest
payments to correct funds. The City recorded the debt services payments in wrong funds last year. An adjustment was necessary to
properly restate the cash and investment held by fiscal agent account. Therefore, cash and investment held by fiscal agent, were
overstated by $91,366 total in Water Fund, Sewer Fund and Parking Fund, and net position was overstated by $91,366 in total for
the fiscal year ended June 30, 2024. Cash and investment held by fiscal agent were understated by $91,366 in Debt Service Fund,
and fund balance was understated by $91,366 in Debt Service Fund for the fiscal year ended June 30, 2024.
(2)Error correction to Affordable Housing Fund –Unavailable revenue and fund balances were restated to record the interest
revenue in the Affordable Housing Fund. The interest revenue was not recorded correctly in the past and adjustment was necessary
to properly restate the unavailable revenue balance. Therefore, unavailable revenue in the Affordable Housing fund was overstated
by $70,654, and fund balance was understated by $70,654 for the fiscal year ended June 30, 2024.
(3) Error correction to General Agency Fund, Asset Forfeiture Available Fund and Police Evidence Available Fund –Cash and
fund balances were restated to move the available funds in General Agency Fund for the City to use to the Asset Forfeiture Available
Fund and Police Evidence Available Fund. The available funds in the custodial funds for the City to use were not recorded correctly
into the City’s special revenue funds.Therefore, cash in the General Agency Fund was overstated by $128,944, net position was
overstated by $128,944 for the fiscal year ended June 30, 2024.Cash in the Asset Forfeiture Available Fund and Police Evidence
Available Fund in total were understated by $128,944,and fund balance was understated by $128,944 for the fiscal year ended June
30, 2024.
6/30/2024
As Previously
Reported
Er ror Correction
(1)
Error Correction
(2)
Error Correction
(3)
6/30/2024
As Resta ted
Governme nta l Activities 249,796,507$ 91,366$ 70,654$ 128,944$ 250,087,471$
Business-typ e Activities 275,530,186 (91,366) - - 275,438,820
Nonma jor Funds 55,769,033 91,366 70,654 128,944 56,059,997
Wa ter Fund 109,961,981 (5,032) - - 109,956,949
Sew er Fund 122,333,448 (5,561) - - 122,327,887
Parking Fund 34,133,265 (80,773) - - 34,052,492
Custodial Fund s 36,487,382 - - (128,944) 36,358,438
134
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REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
135
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136
Page 340 of 525
City of San Luis Obispo, California
Budgetary Comparison Schedule
General Fund
For the Fiscal Year Ended June 30, 2025
Original
Budget
Final
Budget Actual
Variance With
Final Budget
Positive
(Negative)
REVENUES:
Taxes and franchise fees:
Sales and use tax - general 23,962,099$ 23,962,099$ 22,911,086$ (1,051,013)$
Transaction and use tax - Local Revenue Measure 31,855,000 31,855,000 30,926,285 (928,715)
Property tax 16,371,353 16,371,353 17,242,485 871,132
Transient occupancy tax 10,586,256 10,586,256 11,417,888 831,632
Utility users tax 6,622,639 6,622,639 7,501,436 878,797
Property tax in lieu of VLF 6,919,114 6,919,114 7,196,670 277,556
Franchise taxes 2,091,800 2,091,800 2,622,351 530,551
Business tax 4,417,338 4,417,338 3,138,272 (1,279,066)
Cannabis Tax - - 814,502 814,502
Real property transfer tax 155,919 155,919 484,692 328,773
Total taxes 102,981,518 102,981,518 104,255,667 1,274,149
Fines, forfeitures and penalties 203,071 203,071 340,172 137,101
Use of money and property 476,328 476,328 4,892,409 4,416,081
Subventions and grants:
Other State and Federal grants 2,335,624 11,087,624 4,155,356 (6,932,268)
Other subventions and grants 566,500 566,500 530,680 (35,820)
Total subventions and grants 2,902,124 11,654,124 4,686,036 (6,968,088)
Charges for services:
Public safety:
Police 762,105 762,105 719,159 (42,946)
Fire:
Medical emergency recovery 580,136 580,136 726,322 146,186
Fire safety/hazardous materials permits 991,810 991,810 973,336 (18,474)
Other fire revenues 152,861 152,861 177,215 24,354
Community development:
Planning and zoning fees 2,636,482 2,636,482 1,677,398 (959,084)
Construction plan and check inspections 4,008,849 4,008,849 3,470,346 (538,503)
Infrastructure plan check and inspections - - 683,441 683,441
Culture and recreation:
Adult athletic fees 248,840 248,840 208,446 (40,394)
Youth athletic fees 958,618 958,618 1,350,590 391,972
Rental and use fees 400,014 400,014 720,290 320,276
Aquatics 344,120 344,120 393,263 49,143
Golf course 270,000 270,000 375,095 105,095
General government:
Other service charges 733,285 733,285 936,676 203,391
Total charges for services 12,087,120 12,087,120 12,411,577 324,457
Impact Fees - - 118,432 118,432
Other revenues 305,658 326,658 136,217 (190,441)
Total Revenues 118,955,819 127,728,819 126,914,629 (814,190)
(Continued)
137
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City of San Luis Obispo, California
Budgetary Comparison Schedule
General Fund, continued
For the Fiscal Year Ended June 30, 2025
Page 2
Original
Budget
Final
Budget Actual
Variance With
Final Budget
Positive
(Negative)
Expenditures:
Public Safety:
Police protection:
Administration 2,538,303 2,894,638 2,482,077 412,561
Investigations 3,612,738 3,738,359 3,647,834 90,525
Neighborhood services 323,317 331,180 304,657 26,523
Support services 3,533,903 3,660,137 3,672,725 (12,588)
Patrol services 12,536,033 13,186,464 13,627,569 (441,106)
Traffic safety 948,997 977,059 922,256 54,803
Total police protection 23,493,292 24,787,837 24,657,118 130,719
Fire and environmental safety:
Administration 1,343,924 1,514,833 1,538,177 (23,344)
Emergency response 13,311,896 14,921,700 15,169,981 (248,281)
Fire Apparatus Services 638,946 693,307 631,944 61,363
Hazard protection 1,167,937 1,222,332 1,075,918 146,414
Training 113,448 108,668 108,109 559
Disaster preparedness 200,876 208,603 99,079 109,524
Mobile Crisis Unit 195,614 281,066 163,941 117,125
Total fire and environmental safety 16,972,642 18,950,508 18,787,149 163,359
Total public safety 40,465,934 43,738,345 43,444,267 294,078
Transportation:
Transportation planning and engineering 1,178,201 1,179,093 1,139,636 39,457
Street and sidewalk maintenance 2,475,330 2,521,251 2,458,323 62,928
Traffic signals and street lights 594,143 727,439 705,483 21,956
Creek and flood protection 1,596,887 1,627,498 1,533,724 93,774
Total transportation 5,844,561 6,055,281 5,837,166 218,115
Culture and Recreation:
Recreation programs:
Recreation administration 971,535 1,029,304 978,461 50,843
Aquatics/Sinsheimer park facilities 627,884 639,890 706,839 (66,949)
Children's services 1,504,633 1,546,205 1,557,030 (10,825)
Facilities 382,687 403,275 390,589 12,686
Special events 10,500 10,500 1,121 9,379
Recreational sports 740,317 758,875 670,957 87,918
Golf course 835,133 846,164 827,151 19,013
Ranger services 916,900 949,570 882,011 67,559
Maintenance programs:
Swim center maintenance 697,871 729,661 664,404 65,257
Parks and landscape maintenance 4,338,737 4,479,909 4,081,818 398,091
Tree maintenance 290,564 325,865 229,260 96,605
Cultural and social service programs: Human relations
Human relations 619,222 693,587 567,532 126,055
Cultural activities 365,161 365,161 356,625 8,536
Total leisure, cultural and social services 12,301,144 12,777,967 11,913,798 864,169
(Continued)
138
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City of San Luis Obispo, California
Budgetary Comparison Schedule
General Fund, continued
For the Fiscal Year Ended June 30, 2025
Page 3
Original
Budget
Final
Budget Actual
Variance With
Final Budget
Positive
(Negative)
Community Development:
Planning:
Commissions and communities 37,240 37,240 10,187 27,053
Community development administration 1,017,994 1,059,524 972,655 86,869
Long-range planning 1,145,326 1,044,008 899,156 144,852
Development review 2,234,614 2,275,244 1,896,174 379,070
Natural resource protection 973,285 1,313,798 1,247,062 66,736
Construction regulation:
Building and safety 3,194,956 3,652,043 2,886,384 765,659
CIP project engineering 3,029,946 3,151,912 2,819,886 332,026
Economic health:
Community promotion 397,816 352,752 351,412 1,340
Economic development 934,062 860,509 814,416 46,093
Housing 1,197,570 1,260,280 1,200,261 60,019
Total community development 14,162,809 15,007,310 13,097,593 1,909,717
General Government:
Legislation:
Council 240,816 251,446 235,270 16,176
General administration:
City administration 2,318,898 2,435,017 2,147,298 287,719
Public works administration 1,571,031 1,637,305 1,486,040 151,265
Legal services:
City attorney 1,514,049 1,758,600 1,652,744 105,856
City clerk services:
Administration and records 774,801 842,836 778,365 64,471
Organization support services:
Human resource administration 7,890,758 8,064,649 5,842,318 2,222,331
Finance and administration 2,616,190 2,427,346 2,104,693 322,653
Revenue management 483,061 511,787 487,743 24,044
Accounting 1,439,515 1,464,465 1,481,067 (16,602)
Finance non-departmental 893,338 902,030 366,213 535,817
Network services 3,574,551 3,598,745 3,282,048 316,697
Wellness program 55,819 55,819 38,744 17,075
Building and vehicle maintenance:
Buildings 1,558,325 1,535,196 1,526,119 9,077
Vehicle and equipment maintenance 1,488,340 1,532,139 1,472,005 60,134
Total general government before cost
reimbursement 26,419,490 27,017,379 22,900,667 4,116,712
Total general government 21,051,882 21,649,771 17,533,059 4,116,712
Debt Service
Principal - - 360,260 (360,260)
Interest and Fiscal Charges - - 22,321 (22,321)
Total Expenditures 93,826,330 99,228,674 92,208,464 7,020,210
(Continued)
139
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City of San Luis Obispo, California
Budgetary Comparison Schedule
General Fund, continued
For the Fiscal Year Ended June 30, 2025
Page 4
Original
Budget
Final
Budget Actual
Variance With
Final Budget
Positive
(Negative)
Excess of Revenues Over Expenditures 25,129,489 28,500,145 34,706,165 6,206,020
Other Financing Sources (Uses)
Transfers in 5,557,812 5,557,812 5,829,430 271,618
Transfers out (28,155,223) (34,045,195) (34,058,043) (12,848)
Total other financing uses (22,597,411) (28,487,383) (28,228,613) 258,770
Net Change in Fund Balance 2,532,078 12,762 6,477,552 6,464,790$
Fund Balance, Beginning of the Year 45,329,766 45,329,766 45,329,766
Fund Balance, End of Year 47,861,844$ 45,342,528$ 51,807,318$
140
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City of San Luis Obispo, California
Schedule of the Changes in the Net Pension Liability and Related Ratios
Miscellaneous Agent Multiple-Employer Plan
June 30, 2025
Last 10 Years
Fiscal Year 2024-25 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16
Measurement Period 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15
Total pension liability:
Service Cost 5,225,836$ 4,695,253$ 4,364,490$ 3,939,785$ 3,681,240$ 4,042,717$ 4,328,129$ 4,124,832$ 3,580,882$ 3,578,172$
Interest on total pension liability 18,772,636 17,884,042 17,090,797 16,589,680 16,160,011 15,531,812 14,778,918 14,197,897 13,688,523 13,193,597
Changes of Benefits Terms - 293,205
Difference between expected and actual
experience 5,864,043 4,537,569 818,065 (755,414) 1,869,474 2,966,923 1,445,049 694,843 (1,160,933) (2,433,791)
Changes in assumptions - - 8,123,651 - - - (1,292,326) 11,219,603 - (3,057,724)
Benefit payments, including refunds
of employee contributions (16,260,601) (15,400,292) (14,509,974) (13,518,666) (12,892,847) (12,061,701) (10,740,816) (10,161,053) (9,476,508) (8,808,668)
Net change in total pension liability 13,601,914 12,009,777 15,887,029 6,255,385 8,817,878 10,479,751 8,518,954 20,076,122 6,631,964 2,471,586
Total pension liability - beginning 271,720,540 259,710,763 243,823,734 237,568,349 228,750,471 218,270,720 209,751,766 189,675,644 183,043,680 180,572,094
Total pension liability - ending (a) $ 285,322,454 $ 271,720,540 $ 259,710,763 $ 243,823,734 237,568,349$ 228,750,471$ 218,270,720$ 209,751,766$ 189,675,644$ 183,043,680$
Plan fiduciary net position:
Contributions - employer 11,026,090$ 11,050,993$ 16,384,823$ 8,246,755$ 7,709,918$ 9,361,882$ 6,693,987$ 6,776,849$ 6,122,173$ 5,027,356$
Contributions - employee 2,974,063 2,606,854 2,269,339 2,056,274 1,889,583 1,775,245 1,820,697 1,841,331 1,666,606 1,509,834
Net investment income 16,995,192 10,485,099 (13,547,758) 32,904,570 7,205,266 9,124,520 10,820,033 13,053,453 677,557 2,673,657
Benefit payments (16,260,601) (15,400,292) (14,509,974) (13,518,666) (12,892,847) (12,061,701) (10,740,816) (10,161,053) (9,476,508) (8,808,668)
Net plan to plan resource movement - - - - - (316) (2,936) - -
Administrative expense (143,972) (123,771) (110,778) (148,132) (203,824) (97,394) (200,184) (172,935) (72,044) (133,042)
Other miscellaneous income/(expense)- - - - 316 (380,153) - - -
Net change in plan fiduciary
net position 14,590,772 8,618,883 (9,514,348) 29,540,801 3,708,096 8,102,868 8,013,248 11,334,709 (1,082,216) 269,137
Plan fiduciary net position - beginning 176,934,611 168,315,728 177,830,076 148,289,275 144,581,179 136,478,311 128,465,063 117,130,354 118,212,570 117,943,433
Plan fiduciary net position - ending (b)191,525,383$ 176,934,611$ 168,315,728$ 177,830,076$ 148,289,275$ 144,581,179$ 136,478,311$ 128,465,063$ 117,130,354$ 118,212,570$
Net pension liability (asset) -
ending (a) - (b)93,797,071$ 94,785,929$ 91,395,035$ 65,993,658$ 89,279,074$ 84,169,292$ 81,792,409$ 81,286,703$ 72,545,290$ 64,831,110$
Plan fiduciary net position as a percentage of the total pension
liability 67.13%65.12%64.81%72.93%62.42%63.20%62.53%61.25%61.75%64.58%
Covered payroll 32,157,208 29,794,206 24,574,829 23,805,348 21,795,380 22,951,725 23,736,588 21,841,841 20,499,668 19,769,997
Net pension liability as percentage of covered
payroll 291.68% 318.14% 371.91% 277.22% 409.62% 366.72% 344.58% 372.16% 353.89% 327.93%
Benefit changes . The figures above include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes)
that occurred after the June 30, 2019 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
Changes in assumptions .There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of
return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project comp ound (geometric)
returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS
Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement rate June 30, 2017 through June 30, 2021, 7.65 % for measurement dates June 30, 2015 through June 30, 2016 and 7.50% for measurement
date June 30, 2014.
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City of San Luis Obispo, California
Schedule of the Pension Plan Contributions
Miscellaneous Agent Multiple-Employer Plan
June 30, 2025
Last 10 Years
Fiscal Year 2024-25 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16
Actuarially determined contribution 10,874,068$ 9,588,879$ 9,573,782$ 8,851,802$ 8,246,755$ 7,709,918$ 7,093,882$ 6,693,987$ 6,776,849$ 6,122,173$
Contributions in relation to the actuarially
determined contribution (12,983,365) (11,026,090) (11,050,993) (16,384,823) (8,246,755) (7,709,918) (9,361,882) (6,693,987) (6,776,849) (6,122,173)
Contribution deficiency (excess)(2,109,297)$ (1,437,211)$ (1,477,211)$ (7,533,021)$ -$ -$ (2,268,000)$ -$ -$ -$
Covered payroll 33,984,175$ 32,157,208$ 29,794,206$ 24,574,829$ 23,805,348$ 21,795,380$ 22,951,725$ 23,736,588$ 21,841,841$ 20,499,668$
Contributions as percentage of covered
payroll 38.20% 34.29% 37.09% 66.67% 34.64% 35.37% 40.79% 28.20% 31.03% 30.97%
Actuarial Cost Method
Amortization Method
Amortization Period
Asset Valuation Method
Inflation
Salary Increases
Payroll Growth
Discount Rate
Retirement Age
Mortality
For details, see June 30, 2022 CalPERS Funding Valuation Report
Entry Age Normal
The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2024-25 contributions rates are as follows:
The probabilities of mortality are based on the 2021 CalPERS Experience Study.
The probabilities of retirement are based on the 2021 CalPERS Experience Study.
6.80% Net of Pension Plan Investment and Administrative Expenses; includes inflation
2.800%
Varies by Entry Age and Service
2.30%
For details, see June 30, 2022 CalPERS Funding Valuation Report
142
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City of San Luis Obispo, California
Schedule of the City's Proportionate Share of the Net Pension Liability
Safety Cost-Sharing Plan
As of June 30, 2025
Last 10 Years
Fiscal Year 2024-25 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16
Measurement Period 2023-2024 2022-2023 2021-2022 2020-2021 2019-2020 2018-2019 2017-18 2016-17 2015-16 2014-15
Proportion of the Collective Net Pension
Liability 0.69428% 0.69198% 0.71733% 1.08299% 0.7225% 0.7212% 1.2261% 1.1943% 1.2510% 1.3654%
Proportionate Share of the Collective Net
Pension Liability 84,198,128$ 86,327,322$ 82,856,965$ 58,571,330$ 78,611,581$ 73,897,967$ 71,940,534$ 71,364,346$ 64,792,760$ 56,260,280$
Covered payroll 12,772,815$ 11,235,984$ 12,207,346$ 10,744,808$ 9,488,971$ 11,197,562$ 11,246,306$ 10,614,437$ 10,643,123$ 10,849,863$
Proportionate share of the net pension
liability as percentage of covered payroll 659.20% 768.31% 678.75% 545.11% 828.45% 659.95% 639.68% 672.33% 608.78% 518.53%
Plan fiduciary net position as a percentage
of the total pension liability 78.08% 76.21% 76.68% 88.29% 75.26% 75.26% 75.26% 73.31% 74.06% 78.40%
The CalPERS mortality assumptions were adjusted in fiscal year 2019.
The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016, and then decreased from 7.65% to 7.15% in fiscal year 2018, and then decreased from 7.15% to 6.9% in fiscal year 2023.
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Fiscal Year 2024-25 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16
Contractually required contribution
(actuarially determined)11,061,415$ 10,004,005$ 10,016,823$ 12,756,585$ 7,631,620$ 7,167,638$ 6,416,780$ 5,910,345$ 5,549,915$ 5,074,217$
Contribution in relation to the actuarially
determined contributions (11,061,415) (10,004,005) (10,016,823) (12,756,585) (7,631,620) (7,167,638) (8,348,780) (5,910,345) (6,299,915) (5,824,217)
Contribution deficiency (excess)-$ -$ -$ -$ -$ -$ (1,932,000)$ -$ (750,000)$ (750,000)$
Covered payroll 13,473,275$ 12,772,815$ 11,235,984$ 12,207,346$ 10,744,808$ 9,488,971$ 11,197,562$ 11,246,306$ 10,614,437$ 10,643,123$
Contributions as a percentage of covered
payroll 82.10% 78.32% 89.15% 104.50% 71.03% 75.54% 74.56% 52.55% 59.35% 54.72%
The Plan’s proportionate share of aggregate contributions may not match the actual contributions made by the employer during the measurement period. The Plan’s proportionate share of aggregate contributions is
based on the Plan’s proportion of fiduciary net position as well as any additional side fund (or unfunded liability) contributions made by the employer during the measurement period.
City of San Luis Obispo, California
Schedule of the City's Pension Contributions
Safety Cost-Sharing Plan
As of June 30, 2025
Last 10 Years
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Fiscal Year 2024-25 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18
Measurement Period 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17
Total OPEB liability:
Service Cost 518,085$ 493,787$ 480,571$ 423,364$ 415,244$ 477,538$ 463,629$ 450,125$
Interest on total OPEB liability 836,877 940,850 898,021 867,422 841,590 935,528 891,794 856,436
Difference between expected and
actual experience - (2,105,353) - 349,893 - (2,085,962) - -
Changes in assumptions - (291,401) - 507,115 (203,416) 21,857 - -
Benefit payments, including refunds
of employee contributions (734,364) (717,143) (695,937) (678,789) (678,882) (677,824) (765,000) (827,500)
Net change in total OPEB liability 620,598 (1,679,260) 682,655 1,469,005 374,536 (1,328,863) 590,423 479,061
Total OPEB liability - beginning 13,239,129 14,918,389 14,235,734 12,766,729 12,392,193 13,721,056 13,130,633 12,651,572
Total OPEB liability - ending (a)13,859,727$ 13,239,129$ 14,918,389$ 14,235,734$ 12,766,729$ 12,392,193$ 13,721,056$ 13,130,633$
Plan fiduciary net position:
Contributions - employer 740,550$ 1,427,129$ 1,309,367$ 921,000$ 1,656,882$ 677,824$ 1,221,000$ 1,493,996$
Net investment income 1,202,776 619,941 (1,395,486) 2,196,724 259,704 392,852 439,828 469,883
Benefit payments (734,364) (717,143) (695,937) (678,789) (678,882) (677,824) (765,000) (827,500)
Administrative expense (9,757) (8,784) (7,070) (7,235) (3,472) (1,364) (10,170) (2,387)
Net change in plan fiduciary
net position 1,199,205 1,321,143 (789,126) 2,431,700 1,234,232 391,488 885,658 1,133,992
Plan fiduciary net position
- beginning 10,954,815 9,633,672 10,422,798 7,991,098 6,756,866 6,365,378 5,479,720 4,345,728
Plan fiduciary net position
- ending (b)12,154,020$ 10,954,815$ 9,633,672$ 10,422,798$ 7,991,098$ 6,756,866$ 6,365,378$ 5,479,720$
Plan net OPEB liability
- ending (a) - (b)1,705,707$ 2,284,314$ 5,284,717$ 3,812,936$ 4,775,631$ 5,635,327$ 7,355,678$ 7,650,913$
Plan fiduciary net position as a
percentage of the total OPEB liability 87.69% 82.75% 64.58% 73.22% 62.59% 54.53% 46.39% 41.73%
Covered-employee payroll 43,414,242$ 37,590,668$ 38,691,777$ 40,691,438$ 33,077,056$ 33,429,600$ 33,790,437$ 33,722,592$
Plan net OPEB liability as percentage
of covered payroll 3.93% 6.08% 13.66% 9.37% 14.44% 16.86% 21.77% 22.69%
Changes in assumptions. As of June 30, 2023 measurement, the assumption updated the PEMHCA minimum and medical trend. No changes in June 30, 2022 measurement
date. As of June 30, 2021 measurement date, the assumption adds 1. Discount rate was updated based on newer capital market assumptions 2. Medical plan election at
retirement assumption was updated 3. Inflation rate decreased from 2.75% to 2.50%, which decreased the discount rate, medical trend, and aggregate salary increases by
0.25% 4. Demographic assumptions updated to CalPERS 2000-2019 Experience Study 5. Mortality improvement scale was updated to Scale MP-2021. As of June 30, 2020
measurement date, the assumption removed the ACA excise tax. As of June 30, 2019 measurement date, the mortality improvement scale was updated to Scale MP-2019.
Medical plan at retirement estimated using weighted premium of recent retirees; updated based on retirements during 2015-2019.
* Fiscal year 2018 was the first year of implementation. Information is required only for measurement periods for which GASB 75 is applicable.
Benefit changes . The figures shown do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2024 measurement date.
Prepared for the City of San Luis Obispo OPEB Plan
an Agent Multiple-Employer Defined Benefit OPEB Plan
As of June 30, 2025
Last 10 Years *
Schedule of Changes in the Net OPEB Liability and Related Ratios
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Fiscal Year 2024-25 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18
Actuarially
determined
contribution 906,000$ 1,085,000$ 1,055,000$ 1,309,367$ 921,000$ 1,190,000$ 1,154,000$ 1,221,000$
Contributions in
relation to the
actuarially
determined
contributions (1,975,082) (740,550) (1,427,129) (1,309,367) (921,000) (1,656,882) (677,824) (1,221,000)
Contribution
deficiency (excess)(1,069,082)$ 344,450$ (372,129)$ -$ -$ (466,882)$ 476,176$ -$
Covered-employee
payroll 47,500,670$ 43,414,242$ 37,590,668$ 38,691,777$ 40,691,438$ 33,077,056$ 33,429,600$ 33,790,437$
percentage of
covered payroll 4.16% 1.71% 2.81% 3.38% 2.26% 3.60% 3.45% 3.61%
Contributions paid as of June 30, 2024 are deferred to June 30, 2025.
Valuation date
Actuarial Cost Method
Amortization Method
Amortization Period
Asset Valuation Method
Discount Rate
General Inflation
Medical Trend
Mortality
Mortality Improvement
The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2023-24 are as follows:
* Fiscal year 2018 was the first year of implementation. Information is required only for measurement periods for which GASB 75 is applicable.
Prepared for the City of San Luis Obispo Miscellaneous Plan
an Agent Multiple-Employer Defined Benefit OPEB Plan
As of June 30, 2025
Last 10 Years *
Schedule of Employer OPEB Contributions
June 30, 2023
Entry Age Normal, Level % of pay
Level % of pay
6.1-year average period for FY2024/25
Investment gains and losses spread over 5-year rolling period
6.25%
2.50%
Non-Medicare - 8.50% for 2025, decreasing to an ultimate rate of 3.45% in 2076
Medicare (Non-Kaiser) - 7.5% for 2025, decreasing to an ultimate rate of 3.45% in 2076
Medicare (Kaiser) - 6.25% for 2025, decreasing to an ultimate rate of 3.45% in 2076
CalPERS 2000-2019 experience study
Post-retirement mortality projected fully generational with Scale MP-2021
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City of San Luis Obispo, California
Notes to Required Supplementary Information
June 30, 2025
Budgetary Comparison Schedule
1.The budget is prepared using the modified accrual basis of accounting consistent with U.S. generally accepted accounting
principles.
2.Outstanding encumbrances from the prior fiscal year are not reflected in the original budget column but are included in the
final budget amounts.
3.All the City’s general government and engineering programs are initially accounted and budgeted for in the General Fund.
However, certain of these support service programs also benefit the City’s enterprise and agency fund operations, and
accordingly, transfers are made from these funds to reimburse the General Fund for these services. The transfers are based
on a Cost Allocation Plan prepared for this purpose which distributes the shared costs in a uniform, consistent manner in
accordance with U.S. generally accepted accounting principles.
Excess of Expenditures Over Appropriations
1.At June 30, 2025 expenditures exceeded appropriations in the General Fund as noted below.
Department/Division Budget Variance
Police Protection:
Support Se rvices 12,588$
Patrol services 441,106
Fire and environmental safety:
Adminis tration 23,344
Emergency response 248,281
Culture and Recreation:
Aquatics/Sinshe imer park facilities 66,949
Children's services 10,825
Organization Su pport Services:
Accounting 16,602
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148
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OTHER SUPPLEMENTARY INFORMATION
AND COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
149
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150
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Revenues Actual
Local Transaction and Use Tax 30,926,285$
30,926,285$
Expenditure Allocations by Priority
Address Homelessness 907,987$
Community Safety and Emergency Preparedness 6,625,118
Creek and Flood Protection 1,718,128
Economic Development and Business Retention 200,000
Open Space/Natural Areas Preservation and Maintenance 1,555,889
Other Services and Projects 3,342,390
Protect Financial Stability 1,178,100
Safe and Clean Public Areas 1,889,662
Street Maintenance and Transportation (incl bike and ped improvements) 9,150,627
Youth/Senior Services and Recreation Facilities 5,287,099
31,855,000$
Net Change in Fund Balance (928,715)$
Fund Balance Beginning of Year 1,776,826
Fund Balance End of Year 848,111$
City of San Luis Obispo
Local Transaction Tax Measure Funding Schedule
For the Fiscal Year Ended June 30, 2025
151
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Revenues Budget Actual
Local Transaction and Use Tax 30,926,285$ 30,926,285$
30,926,285$ 30,926,285$
Expenditures
Transfer Out for Operating Programs:
Address Homelessness 907,987$ 907,987$
Community Safety and Emergency Preparedness 2,708,462 2,708,462
Creek and Flood Protection 693,128 693,128
Economic Development and Business Retention 150,000 150,000
Open Space/Natural Areas Preservation and Maint. 695,889 695,889
Other Services and Projects 141,500 141,500
Protect Financial Stability 1,178,100 1,178,100
Safe and Clean Public Areas 408,551 408,551
Street Maintenance and Transportation 679,931 679,931
Youth/Senior Services and Recreation Facilities 546,115 546,115
8,109,663$ 8,109,663$
Transfer Out for 2024-25 Capital Projects
Community Safety and Emergency Preparedness 3,916,656$ 3,916,656$
Creek and Flood Protection 1,025,000 1,025,000
Economic Development and Business Retention 50,000 50,000
Open Space/Natural Areas Preservation and Maintenance 860,000 860,000
Other Services and Projects 3,200,890 3,200,890
Safe and Clean Public Areas 1,481,111 1,481,111
Street Maintenance and Transportation (incl bike and ped improvements) 8,470,696 8,470,696
Youth/Senior Services and Recreation Facilities 4,740,984 4,740,984
23,745,337$ 23,745,337$
Net Change in Fund Balance (928,715)$
Fund Balance Beginning of Year 1,776,826$
Fund Balance End of Year 848,111$
City of San Luis Obispo
Local Transaction Tax Measure Funding Schedule
For the Fiscal Year Ended June 30, 2025
152
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Page 2
Capital Programs:Budget*Actual Encumbrances Carryover
Community Safety and Emergency Preparedness
Fire Station #2 - Parking Lot Maintenance 149,646 2,988 - 146,658
Fire Station #3 & #4 Remodel Space Study and Design 264,739 27,256 105,357 132,126
Fleet Replacement - Admin 9,484 - - 9,484
Fleet Replacement - Fire 776,431 88,554 - 687,877
Fleet Replacement - Police 412,416 273,253 43,275 95,887
Fleet Replacement - Public Works 97,778 - - 97,778
IT Replacements 180,099 25,135 - 154,964
Major Facility Maintenance 255,709 211,205 - 44,503
Major Facility Replacement - Police 341,985 81,701 32,844 227,440
Parking Lot Maintenance - 1016 Walnut 6,164 - - 6,164
Police - Information Technology 1,444,119 16,894 485,222 942,003
Public Safety Center - Police Station Replacement 1,017,377 110,589 686,410 220,378
Righetti Hillside Slide Repair 1,584,745 901,312 10,853 672,580
Storm Response & Recovery 3,436,242 689,082 1,365,701 1,381,459
9,976,934$ 2,427,971$ 2,729,661$ 4,819,302
Creek and Flood Protection
Creek Bank Stabilization Near Pismo and Johnson 106,073 10,000 - 96,073
Fleet Replacement - Public Works 3,989 - - 3,989
Johnson - Iris to Bishop Pipeline Replacement 1,502 1,502 - -
Ruth and Iris Culvert Replacement 30,826 - - 30,826
Storm Drainage Infrastructure Replacement 2,197,379 775,450 7,935 1,413,994
2,339,770$ 786,952$ 7,935$ 1,544,882
Economic Development and Business Retention
Additional Banner Arms, Bench Arm Rests, Signs 133,155 29,609 260 103,286
Annual Public Art Maintenance and Projects 244,506 244,006 500 -
Downtown Renewal 255 - - 255
Downtown Zig-Zag Lighting 223,000 37,474 - 185,526
Mission Plaza Maintenance Improvements 102,553 - - 102,553
Open SLO 60,098 11,747 800 47,551
Public Art Installation 281,036 44,264 29,889 206,884
1,044,603$ 367,099$ 31,449$ 646,055
Open Space/Natural Areas Preservation and Maintenance
Laguna Lake Dog Park 256,229 214,765 8,385 33,079
Laguna Lake Dredging 102,361 34,737 8,677 58,947
Open Space Acquisition 695,616 21,288 19,513 654,815
Open Space Maintenance 279,227 82,554 3,154 193,519
Pismo Street Retaining Wall 198,194 108,352 84,842 5,000
Urban Forest Maintenance 470,674 388,037 - 82,637
2,002,300$ 849,733$ 124,570$ 1,027,997
City of San Luis Obispo
Local Transaction Tax Measure Funding Schedule, continued
Local Revenue Measure Funded Projects
Includes Legacy Projects and projects funded by Capital Reserve
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Page 3
Capital Programs:Budget*Actual Encumbrances Carryover
Other Services and Projects
CIP Project Delivery Augmentation 10 - - 10
Corp Yard Fuel Island Siding 41 - - 41
Electric Vehicle Charging Stations 462,535 21,830 40,801 399,903
Fleet Replacement - Admin 125,000 4,631 - 120,369
Fleet Replacement - Citywide 259,001 156,952 63,259 38,790
Fleet Replacement - Public Works 544,490 98 0 544,392
KVEC Tower 53,610 - - 53,610
Major Facility Maintenance 293,641 203,493 49,906 40,243
Park Major Maintenance 19,561 - - 19,561
1,757,889$ 387,004$ 153,966$ 1,216,920
Safe and Clean Public Areas
Area 6 & 7 Curb Ramps 2,610 - - 2,610
Bob Jones Trail and Railroad Safety Trail Solar Lightning 49,600 - - 49,600
Curb Ramps and Sidewalks Replacements 201,482 101,743 11,810 87,930
IT Replacement 80,543 5,106 - 75,436
Mission Plaza Concept Plan Implementation 2,209,147 1,002,378 356,189 850,580
Park Major Maintenance & Repairs: Mission Plaza Railing 710,932 29,395 - 681,537
Pedestrian Crossing Improvements 501,823 - 32,509 469,314
Pedestrian Crosswalk Beacon on Ramona 13,255 - 13,255 -
Railroad Safety Trail Taft to Pepper 27,150 - - 27,150
Street and Pathway Lighting 170,734 67,006 7,389 96,340
3,967,276$ 1,205,628$ 421,151$ 2,340,497
Local Transaction Tax Measure Funding Schedule, continued
Local Revenue Measure Funded Projects
Includes Legacy Projects and projects funded by Capital Reserve
City of San Luis Obispo
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Page 4
Capital Programs:Budget*Actual Encumbrances Carryover
Street Maintenance and Transportation
2022 Street Reconstruction and Resurfacing 734,309 443,479 17,649 273,181
2023 Streets Reconstruction & Resurfacing - Arterials 1,290,884 1,034,896 61,239 194,749
Active Transportation Plan Implementation 504,354 135,644 41,738 326,972
ATP - Higuera Complete Street Project 781,248 165,090 23,497 592,661
ATP - Foothill Boulevard Complete Street Project 155,085 74,368 22,628 58,090
California Taft Roundabout 514,106 36,155 100,641 377,310
Development Agreements 1,014,556 120,721 725,141 168,694
Fleet Replacement - Public Works 80,000 23,978 - 56,022
Higuera Widening at 50 Higuera 22,600 - - 22,600
Marsh and Santa Rosa Bridge Replacement 2,635 - - 2,635
Mid-Higuera Bypass 5,450,178 1,994,242 1,782,053 1,673,884
Monterey at Santa Rosa Paving and Signal Project 539,158 - - 539,158
Neighborhood Traffic Improvements 120,341 188 49,958 70,196
North Chorro Neighborhood Greenway - Phase 2 2,018,368 545,548 71,169 1,401,651
Orcutt/Tank Farm Roundabout Construction 77,002 7,615 11,195 58,192
Prado Road Bridge & Road Widening 103,472 - 93,394 10,079
Prado Road Interchange 2,396,146 35,687 12,230 2,348,229
Roadway Sealing 2022 343,253 - - 343,253
Roadway Sealing 2024 4,418,775 1,545,078 342,139 2,531,559
Sewer Replacement Chorro & Murray 80,000 - - 80,000
South Street Median Landscaping 6,862 - 3,810 3,052
Traffic Safety Report Improvements 10,139 - - 10,139
Traffic Signs & Striping Maintenance 143,521 15,972 9 127,540
Transportation Safety & Operations 254,058 56,693 16,323 181,042
21,061,050$ 6,235,353$ 3,374,811$ 11,450,887
Youth/Senior Services and Recreation Facilities
Fleet Replacement - Parks and Recreation 274,625 90,011 3,295 181,319
Fleet Replacement - Public Works 194,345 194,345 - -
Golf Course Pro Shop Flood Damage Repairs 40,058 9,000 - 31,058
Laguna Lake Golf Course Maintenance 68,625 21,960 45,000 1,665
Lead by Example (Swim Center Heat Pump)75,000 - - 75,000
Major Facility Maintenance 841,511 228,151 216,951 396,409
North Broad Street Neighborhood Park 103,867 88,470 - 15,396
Orcutt Area - Linear Park Planning and Construction 25,462 6,994 - 18,468
Parking Lot Maintenance 209,307 14,335 - 194,972
Playground Equipment Replacement 95,262 38,982 5,311 50,969
Parks and Recreation Master Plan Implementation 54,280 - - 54,280
Parks Major Maintenance 648,297 224,401 47,569 376,326
Righetti Community Park 5,075,288 90,603 1,177,843 3,806,843
7,705,926$ 1,007,252 1,495,969$ 5,202,706
Total Capital Expenditures 49,855,748$ 13,266,991$ 8,339,511$ 28,249,245$
*This Budget amount also includes carryover from prior years.
Includes Legacy Projects and projects funded by Capital Reserve
City of San Luis Obispo
Local Transaction Tax Measure Funding Schedule, continued
Local Revenue Measure Funded Projects
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City of San Luis Obispo, California
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
The City maintains the following nonmajor governmental funds:
Special Revenue Funds
The City has established the following ten special revenue funds in order to account for the proceeds from revenue
sources that are restricted or committed to expenditures for specified purposes.Budgets are prepared using the
modified accrual basis of accounting consistent with U.S. generally accepted accounting principles.
Downtown Business Improvement District (BID)Fund .This fund has been established to account for the receipt
of a surcharge derived from a supplemental assessment upon businesses within the Downtown Business
Improvement District’s boundaries.Pursuant to the provisions of the Municipal Code,this surcharge is equal to
$150.00 per year.Expenditures from the fund are limited to four basic purposes:decorating public places within the
downtown;promoting public events in the downtown core;promoting trade activities;and improving parking in the
Transportation Development Act (TDA)Fund .The State of California has designated 1/4%of the sales tax levied
statewide for local transportation purposes.Funding for this program was provided during the 1971 legislative
session with the enactment of the Transportation Development Act,which extended the State sales tax to include
purchases of gasoline.Revenues allocated to the City of San Luis Obispo under this program are divided into two
categories:Article 3 funds,which are restricted for the improvement and maintenance of street systems including
pedestrian and bicycle facilities;and Article 4 funds,which are restricted for public transit systems and are recorded
directly in the Transit Fund.Under the City's Financial Plan policies,all TDA Article 3 revenues are allocated for
alternative transportation purposes. The purpose of this fund is to account for these revenues.
Tourism Business Improvement District (BID)Fund .This fund has been established to account for the receipt of a
surcharge derived from assessments upon the lodging establishments within the City.The surcharge is equal to 2%
of gross room rents. Expenditures from the fund are limited to the marketing and promotion of tourism.
Gas Tax Fund .Portions of the tax rate per gallon levied by the State of California on all gasoline purchases are
allocated to cities throughout the State on a population basis.These funds are restricted for expenditures by the State
of California for street-related purposes only.Under the City's Financial Plan policies,all gas tax revenues are
transferred to the General Fund for street maintenance purposes.
Community Development Block Grant (CDBG)Fund.This fund has been established to account for federal funds
received by the City specifically to benefit low and moderate income persons,aid in the elimination of blight,and
meet other community development needs as allowed by block grant regulations.
Law Enforcement Grants Fund . This fund has been established to account for public safety grant funds.
Public Arts Contribution Fund.Public contributions to the public art program are accounted for in this fund along
with the expenditures for public art projects funded by this revenue source.
Avila Ranch Fund.This fund has been established to account for the ongoing funding received as a special property
tax assessment and the associated infrastructure and service improvements of the Avila Ranch Community Facilities
District.
SB1 Road Repair Fund.This fund has been established to account for stable and ongoing funding for maintenance
and improvements to transportation infrastructure as provided through Senate Bill 1 (2017),the Road Repair and
Accountability Act.
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City of San Luis Obispo, California
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
SB1186 CASP Certify Fund .This fund has been established as Senate Bill 1186 (2012)requires local agencies to
collect an additional fee when issuing a permit for the purpose of increasing certified access specialist (CASp)
services and compliance with construction-related accessibility requirements.The first priority is to spend the funds
on the training and retention of CASps in order to meet the needs of the public in the jurisdiction.The funds may
also be spent on activities or programs that facilitate accessibility compliance.
Affordable Housing BEGIN Loan Fund.This fund has been established to account for affordable housing loans
that were provided under the State's BEGIN program.
Avila Ranch DPA Fund.This fund has been established to account for the home buyer down payment assistance
program required by the Avila Ranch development.
Opioid Settlement Fund.This fund has been established to account for money received from national lawsuits
against manufacturers, distributors and other entities responsible for aiding the opioid epicemic and related.
Asset Forfeiture Available Fund.This fund has been established to account for the City's share of resolved asset
forfeiture cases.
SLR PAYGO City ShareFund.This fund has been established to account for the City's share of the San Luis Ranch
CFD property tax assessments that provide pay-as-you-go financing for infrastructure improvements authorized to be
funded by CFD No. 2019-1.
Code Enforcement Abatement Fund.This fund has been established to account for code enforcement abatement
activities and recoveries.
Police Evidence Available Fund.This fund has been established to account for the City's share of resolved criminal
cases where money was seized as evidence.
Capital Projects Funds
The following eleven capital project funds are used by the City to account for the financial resources used in the
construction or acquisition of major capital facilities or equipment (with the exception of those financed primarily
through proprietary funds).Budgets are prepared using the modified accrual basis of accounting consistent with U.S.
generally accepted accounting principles on a multi-year project basis.Accordingly,budgetary comparisons for the
capital projects funds are not presented in the accompanying other supplementary information.
Parkland Development Fund -Quimby .This fund was established to account for parkland in-lieu fees in
accordance with the AB 1191 Act,also known as the Quimby Act;it authorizes the City to require residential
subdivisions to dedicate land for parks or pay fees in lieu of dedication.Impact fees may be collected to pay for park
land (for projects not involving a subdivision),park improvements,community centers,recreation facilities,trails,
open space, etc.
Open Space Protection Fund .This fund was established to account for projects funded as part of the City’s open
space protection program to enhance open space and agricultural conservation on lands within and surrounding the
City,improve passive recreational and nature study opportunities,and restore and enhance wildlife habitat.Projects
in this fund will be financed with General Fund contributions, outside contributions, and State and Federal grants.
Airport Area Impact Fee Fund.This fund was established to account for interim annexation fees collected for the
specific plan and related infrastructure master plans for annexing the airport area to the City.
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City of San Luis Obispo, California
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
Los Osos Valley Road (LOVR)Sub-Area Fee Fund .This fund was established to account for the LOVR add-on
impact fee created for the expansion of capacity for the LOVR interchange at US 101 for construction,project
management,and inspection.Though the project has been completed,the City has an existing reimbursement
agreement with Costco Wholesale Corporation for improvements already constructed at the LOVR interchange.
Fleet Replacement Fund .This fund was established to account for the financing and replacement of vehicles for all
General Fund programs of the City.Financing is primarily provided through operating transfers from the General
Fund as well as from interest earnings and sales of surplus property.
Information Technology Replacement Fund .This fund was established in FY 12-13 to account for the financing
and replacement of information technology for all General Fund programs of the City.Financing is primarily
provided through operating transfers from the General Fund as well as from interest earnings.
Major Facility Replacement Fund.This fund accounts for the financing and replacement of major facilities for all
General Fund programs of the City.Financing is primarily provided through operating transfers from the General
Fund as well as from interest earnings.
Affordable Housing Program Fund .This fund accumulates revenues from inclusionary housing fees for capital
projects related to affordable housing programs and projects.
Transportation Impact Fee Fund.This fund was established to account for construction projects related to
transportation facilities and travel lanes within the City that will be financed primarily with transportation impact
fees.
Infrastructure Fund .This fund was established to provide financing to infrastructure projects that have a wide
community benefit. Financing is primarily provided through operating transfers from the General Fund.
Parkland Development Impact Fee –Citywide Fund .This fund was created to account for impact fees that were
established for the purpose of acquisition and improvement of community parks and existing park facilities intended
for access and use by the entire city.
OASP Park Development Fund .This fund was established to account for impact fees created for the purpose of
acquisition and improvement of community parks and existing park facilities intended for access and use by the
entire city but more specifically by the Orcutt Area residents as the location of this park projects are in the Orcutt
MASP Park Development Fund .This fund was established to account for impact fees created for the purpose of
acquisition and improvement of community parks and existing park facilities intended for access and use by the
entire city but more specifically by the Margarita Area residents as the location of this park projects are in the
Margarita Area.
OASP Transportation Impact Fee Fund .This fund was established to account for construction projects that will be
financed primarily with transportation impact fees within the Orcutt Area Specific Plan in accordance with its
Development Agreement.
Fire Impact Fee Fund .This fund was established to account for fire department related construction projects that
will be financed primarily with public safety development impact fees.
Police Impact Fee Fund .This fund was established to account for police department related construction projects
that will be financed primarily with public safety development impact fees.
Park Improvement Impact Fee –Citywide Fund .This fund was established to account for construction projects
related to park improvements that will be financed primarily with park in-lieu fees.
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City of San Luis Obispo, California
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
SLR Transportation Impact Fee .This fund was established to account for construction projects that will be
financed primarily with transportation impact fees within the San Luis Ranch development,in accordance with its
Development Agreement.
Public Safety Equipment Replacement Fund.This fund accounts for the financing and replacement of public
safety equipment.Financing is primarily provided through operating transfers from the General Fund as well as
from interest earnings.
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City of San Luis Obispo, California
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
Debt Service Fund
The City has established one debt service fund to account for the payment and accumulation of resources related to
governmental activities long-term debt principal and interest for the following debt issues.Budgets are prepared
using the modified accrual basis of accounting consistent with U.S.generally accepted accounting principles.The
following governmental activity debt issuances are serviced by this fund.
Capital Improvement Board 2012 Refunding Lease Revenue Bonds .In May 2012 the Board issued $5,050,000 of
2012 Lease Revenue Refunding Bonds.These bonds were issued to refinance the outstanding 2001 Lease Revenue
Bonds,Series C,which will be redeemed on December 1, 2029.The 2001 bonds were used to purchase property and
build athletic fields; purchase property for police station expansion; purchase Downtown Plan properties.
The Board has entered into a lease agreement with the City under which the City is responsible for making lease
payments to fund the annual debt service requirements.
Public Financing Authority 2014 Lease Revenue Bonds .In 2014 the Authority issued $7,580,000 of 2014 Lease
Revenue Bonds.These bonds were issued to finance the expansion of the Los Osos Valley Road interchange at U.S.
101. Debt service related to the interchange is recorded in the Debt Service Fund.
The Authority has entered into a lease agreement with the City under which the City is responsible for making lease
payments to fund the annual debt service requirements.
Public Financing Authority 2018 Lease Revenue Bonds .In 2018 the Authority issued $11,072,775 of 2018 Lease
Revenue Refunding Bonds.These bonds were issued to refinance the outstanding 2005 Revenue Bonds,2006 Lease
Revenue Bonds,and 2009 Lease Revenue Bonds.The original bonds were used to accomplish several high priority
capital improvement projects including the headquarters fire station,seismic safety and HVAC improvements to
City Hall,Mission Plaza expansion,and various properties and street lighting system purchases.Further,the bonds
were used to purchase a parking structure and office building and to the finance the construction of the Public Safety
Communications and Emergency Operations Center project.
The Authority has entered into a lease agreement with the City under which the City is responsible for making lease
payments to fund the annual debt service requirements.
161
Page 365 of 525
City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
Downtown BID
Transportation
Development
Act (TDA) Tourism BID Gas Tax
Assets
Cash and investment 222,367$ 10,050$ 1,403,825$ -$
Accounts receivable - - 308,919 -
Tax receivable - - - -
Due from other funds - - - -
Accrued interest receivable - - 6,066 -
Loans receivable - - - -
Total assets 222,367$ 10,050$ 1,718,810$ -$
Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:
Accounts payable 51,361$ -$ 81,693$ -$
Accrued liabilities - - 6,189 -
Due to other funds - - - -
Unearned revenue 170,630 - - -
Total liabilities 221,991 - 87,882 -
Deferred Inflows of Resources:
Unavailable revenue - - - -
Fund balance:
Restricted for:
Public safety programs - - - -
Transportation projects - 10,050 - -
Affordable housing programs - - - -
Impact fee programs - - - -
Parkland development programs - - - -
Public art programs - - - -
Tourism programs 376 - 1,630,928 -
Infrastructure improvement - - - -
Committed to:
Public safety program - - - -
Assigned to:
Contingency fund - - - -
Subsequent years expenditures - - - -
Unassigned - - - -
Total fund balance 376 10,050 1,630,928 -
Total liabilities, deferred inflows of
resources, and fund balance 222,367$ 10,050$ 1,718,810$ -$
(Continued)
June 30, 2025
Special Revenue Funds
162
Page 366 of 525
City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2025
Community
Development Block
Grant (CDBG)
Law Enforcement
Grants
Public Art
Contributions Avila Ranch CFD
Assets
Cash and investment 134,119$ 51,334$ 1,621,067$ 491,881$
Accounts receivable - 2,191 - 1,859
Tax receivable - - - -
Due from other funds - - - -
Accrued interest receivable 744,700 232 7,567 2,115
Loans receivable 1,112,944 - - -
Total assets 1,991,763$ 53,757$ 1,628,634$ 495,855$
Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:
Accounts payable -$ 2,604$ 70,763$ 4,259$
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - 386 - -
Total liabilities - 2,990 70,763 4,259
Deferred Inflows of Resources:
Unavailable revenue 744,700 - - -
Fund balance:
Restricted for:
Public safety programs - 50,767 - -
Transportation projects - - - -
Affordable housing programs 1,247,063 - - -
Impact fee programs - - - -
Parkland development programs - - - -
Public art programs - - 1,557,871 -
Tourism programs - - - -
Infrastructure improvement - - - 491,596
Committed to:
Public safety program - - - -
Assigned to:
Contingency fund - - - -
Subsequent years expenditures - - - -
Unassigned - - - -
Total fund balance 1,247,063 50,767 1,557,871 491,596
Total liabilities, deferred inflows of
resources, and fund balance 1,991,763$ 53,757$ 1,628,634$ 495,855$
(Continued)
Special Revenue Funds
163
Page 367 of 525
City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2025
SB1 Road Repair
SB1186 CASP
Certify
Affordable
Housing BEGIN
Loan Fund
Opioid Settlement
Fund
Assets
Cash and investment 96,741$ 231,278$ 22,336$ 313,511$
Accounts receivable - - - -
Tax receivable 234,117 - - -
Due from other funds - - - -
Accrued interest receivable 66 1,059 140,493 1,534
Loans receivable - - 422,995 -
Total assets 330,924$ 232,337$ 585,824$ 315,045$
Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:
Accounts payable -$ -$ -$ 38,817$
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - 17,824 - -
Total liabilities - 17,824 - 38,817
Deferred Inflows of Resources:
Unavailable revenue - - 140,341 -
Fund balance:
Restricted for:
Public safety programs - - - 276,228
Transportation projects 330,924 214,513 - -
Affordable housing programs - - 445,483 -
Impact fee programs - - - -
Parkland development programs - - - -
Public art programs - - - -
Tourism programs - - - -
Infrastructure improvement - - - -
Committed to:
Public safety program - - - -
Assigned to:
Contingency fund - - - -
Subsequent years expenditures - - - -
Unassigned - - - -
Total fund balance 330,924 214,513 445,483 276,228
Total liabilities, deferred inflows of
resources, and fund balance 330,924$ 232,337$ 585,824$ 315,045$
Special Revenue Funds
164
Page 368 of 525
City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2025
Asset Forfeiture
Available Fund
SLR PAYGO City
Share
Code Enforcement
Abatement Fund
Police Evidence
Available Fund
Assets
Cash and investment 60,822$ 170,059$ 35,837$ 76,702$
Accounts receivable - - - -
Tax receivable - - - -
Due from other funds - - - -
Accrued interest receivable 285 795 84 90
Loans receivable - - - -
Total assets 61,107$ 170,854$ 35,921$ 76,792$
Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:
Accounts payable -$ -$ -$ -$
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - - - -
Total liabilities - - - -
Deferred Inflows of Resources:
Unavailable revenue - - - -
Fund balance:
Restricted for:
Public safety programs 61,107 170,854 35,921 76,792
Transportation projects - - - -
Affordable housing programs - - - -
Impact fee programs - - - -
Parkland development programs - - - -
Public art programs - - - -
Tourism programs - - - -
Infrastructure improvement - - - -
Committed to:
Public safety program - - - -
Assigned to:
Contingency fund - - - -
Subsequent years expenditures - - - -
Unassigned - - - -
Total fund balance 61,107 170,854 35,921 76,792
Total liabilities, deferred inflows of
resources, and fund balance 61,107$ 170,854$ 35,921$ 76,792$
(Continued)
Special Revenue Funds
165
Page 369 of 525
City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2025
Parkland
In-Lieu Fee
Open Space
Protection
Airport Area
Impact Fee
LOVR Sub-Area
Fee
Assets
Cash and investment 606,380$ 100,016$ 243,602$ 64,723$
Accounts receivable - - - -
Tax receivable - - - -
Due from other funds - - - -
Accrued interest receivable 24,247 468 1,139 303
Loans receivable 227,589 - - -
Total assets 858,216$ 100,484$ 244,741$ 65,026$
Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:
Accounts payable 10,017$ -$ 73,798$ -$
Accrued liabilities - - - -
Due to other funds - - - 67,478
Unearned revenue - - - -
Total liabilities 10,017 - 73,798 67,478
Deferred Inflows of Resources:
Unavailable revenue 248,959 - - -
Fund balance:
Restricted for:
Public safety programs - - - -
Transportation projects - - 170,943
Affordable housing programs - - - -
Impact fee programs - - - -
Parkland development programs 599,240 - - -
Public art programs - - - -
Tourism programs - - - -
Infrastructure improvement - - - -
Committed to:
Public safety program - - - -
Assigned to:
Contingency fund - - - -
Subsequent years expenditures - 100,484 - -
Unassigned - - - (2,452)
Total fund balance 599,240 100,484 170,943 (2,452)
Total liabilities, deferred inflows of
resources, and fund balance 858,216$ 100,484$ 244,741$ 65,026$
(Continued)
Capital Projects Funds
166
Page 370 of 525
City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2025
Fleet Replacement
Info Tech
Replacement
Affordable
Housing
Transportation
Impact Fee
Assets
Cash and investment 2,514,421$ 4,273,260$ 207,526$ 7,075,738$
Accounts receivable - - - -
Tax receivable - - - -
Due from other funds - - - 67,478
Accrued interest receivable - - 2,854,992 237,094
Loans receivable - - 8,490,688 1,401,928
Total assets 2,514,421$ 4,273,260$ 11,553,206$ 8,782,238$
Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:
Accounts payable 25,374$ 52,939$ -$ 19,331$
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - 170,333 - -
Total liabilities 25,374 223,272 - 19,331
Deferred Inflows of Resources:
Unavailable revenue - - 2,850,875 1,603,464
Fund balance:
Restricted for:
Public safety programs - - - -
Transportation projects - - - 7,159,443
Affordable housing programs - - 8,702,331 -
Impact fee programs - - - -
Parkland development programs - - - -
Public art programs - - - -
Tourism programs - - - -
Infrastructure improvement - - - -
Committed to:
Public safety program - - - -
Assigned to:
Contingency fund 500,000 400,000 - -
Subsequent years expenditures 1,989,047 3,649,988 - -
Unassigned - - - -
Total fund balance 2,489,047 4,049,988 8,702,331 7,159,443
Total liabilities, deferred inflows of
resources, and fund balance 2,514,421$ 4,273,260$ 11,553,206$ 8,782,238$
(Continued)
Capital Projects Funds
167
Page 371 of 525
City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2025
Infrastructure
Parkland
Development
Impact Fee-
Citywide OASP Park MASP Park
Assets
Cash and investment 18,887,327$ 1,507,357$ 2,047,143$ 3,438,516$
Accounts receivable - - - -
Tax receivable - - - -
Due from other funds - - - -
Accrued interest receivable - 105,337 9,643 16,084
Loans receivable - 446,826 - -
Total assets 18,887,327$ 2,059,520$ 2,056,786$ 3,454,600$
Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:
Accounts payable -$ -$ -$ -$
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - - - -
Total liabilities - - - -
Deferred Inflows of Resources:
Unavailable revenue - 545,290 - -
Fund balance:
Restricted for:
Public safety programs - - - -
Transportation projects - - - -
Affordable housing programs - - - -
Impact fee programs - 1,514,230 2,056,786 3,454,600
Parkland development programs -
Public art programs - - - -
Tourism programs - - - -
Infrastructure improvement - - - -
Committed to:
Public safety program - - - -
Assigned to:
Contingency fund - - - -
Subsequent years expenditures 18,887,327 - - -
Unassigned - - - -
Total fund balance 18,887,327 1,514,230 2,056,786 3,454,600
Total liabilities, deferred inflows of
resources, and fund balance 18,887,327$ 2,059,520$ 2,056,786$ 3,454,600$
(Continued)
Capital Projects Funds
168
Page 372 of 525
City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2025
OASP
Transportation
Impact Fee Fire Impact Fee Police Impact Fee
Park Improvement
Impact Fee-
Citywide
Assets
Cash and investment 1,856,198$ 508,926$ 636,955$ 2,233,232$
Accounts receivable - - - -
Tax receivable - - - -
Due from other funds - - - -
Accrued interest receivable 8,602 17,284 14,007 24,419
Loans receivable - 102,569 85,280 203,154
Total assets 1,864,800$ 628,779$ 736,242$ 2,460,805$
Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:
Accounts payable -$ -$ -$ -$
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - - - -
Total liabilities - - - -
Deferred Inflows of Resources:
Unavailable revenue - 117,523 96,415 217,099
Fund balance:
Restricted for:
Public safety programs - -
Transportation projects - - -
Affordable housing programs - - - -
Impact fee programs 1,864,800 511,256 639,827 2,243,706
Parkland development programs - - -
Public art programs - - - -
Tourism programs - - - -
Infrastructure improvement - - - -
Committed to:
Public safety program - - - -
Assigned to:
Contingency fund - - - -
Subsequent years expenditures - - - -
Unassigned - - - -
Total fund balance 1,864,800 511,256 639,827 2,243,706
Total liabilities, deferred inflows of
resources, and fund balance 1,864,800$ 628,779$ 736,242$ 2,460,805$
(Continued)
Capital Projects Funds
169
Page 373 of 525
City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2025
SLR
Transportation
Impact Fee
Public Safety
Equipment
Replacement Fund Debt Service
Total Nonmajor
Governmental
Funds
Assets
Cash and investment 2,594,471$ 511,883$ -$ 54,249,603$
Accounts receivable - - - 312,969
Tax receivable - - - 234,117
Due from other funds - - - 67,478
Accrued interest receivable 12,136 - - 4,230,841
Loans receivable - - - 12,493,973
Total assets 2,606,607$ 511,883$ -$ 71,588,981$
Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:
Accounts payable -$ 2,907$ -$ 433,863$
Accrued liabilities - - - 6,189
Due to other funds - - 43,089 110,567
Unearned revenue - - - 359,173
Total liabilities - 2,907 43,089 909,792
Deferred Inflows of Resources:
Unavailable revenue - - - 6,564,666
Fund balance:
Restricted for:
Public safety programs - - - 671,669
Transportation projects - - 7,885,873
Affordable housing programs - - - 10,394,877
Impact fee programs 2,606,607 - - 14,891,812
Parkland development programs - - - 599,240
Public art programs - - - 1,557,871
Tourism programs - - - 1,631,304
Infrastructure improvement - - - 491,596
Committed to:
Public safety program - 508,976 - 508,976
Assigned to:
Contingency fund - - - 900,000
Subsequent years expenditures - - - 24,626,846
Unassigned - - (43,089) (45,541)
Total fund balance 2,606,607 508,976 (43,089) 64,114,523
Total liabilities, deferred inflows of
resources, and fund balance 2,606,607$ 511,883$ -$ 71,588,981$
Capital Projects Funds
170
Page 374 of 525
City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
Downtown BID
Transportation
Development Act
(TDA) Tourism BID Gas Tax
Revenues:
Use of money and property -$ -$ 56,468$ -$
Subventions and grants - 66,918 - 1,405,863
Charges for services 319,279 - 2,248,296 -
Property tax - - - -
Other revenues - - - -
Total revenues 319,279 66,918 2,304,764 1,405,863
Expenditures:
Current:
Public safety - - - -
Transportation - - - -
Community development 185,341 - 2,152,578 -
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Capital:
General Government - - - -
Transportation - - - -
Leisure, cultural and social services - - - -
Community development - - - -
Total expenditures 185,341 - 2,152,578 -
Excess (deficiency) of revenues over
(under) expenditures 133,938 66,918 152,186 1,405,863
Other financing sources (uses):
Transfers in - - - -
Transfers out - (90,000) (44,914) (1,405,863)
Total other financing
sources (uses)- (90,000) (44,914) (1,405,863)
Net change in fund balance 133,938 (23,082) 107,272 -
Fund balance, beginning of year (133,562) 33,132 1,523,656 -
Prior year restatements - - - -
Fund balance (deficit),
beginning of year, as restated (133,562) 33,132 1,523,656 -
Fund balance (deficit),
end of year 376$ 10,050$ 1,630,928$ -$
(Continued)
Special Revenue Funds
171
Page 375 of 525
City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
Community
Development Block
Grant (CDBG)
Law Enforcement
Grants
Public Art
Contributions Avila Ranch CFD
Revenues:
Use of money and property -$ 2,247$ 76,041$ 21,063$
Subventions and grants 33,368 151,957 - -
Charges for services - 288 50,486 -
Property tax - - - 539,453
Other revenues - 1,520 - -
Total revenues 33,368 156,012 126,527 560,516
Expenditures:
Current:
Public safety - 156,008 - -
Transportation - - - -
Community development - - - 50,435
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Capital:
General Government - - - -
Transportation - - - -
Leisure, cultural and social services - - 303,142 -
Community development - - - -
Total expenditures - 156,008 303,142 50,435
Excess (deficiency) of revenues over
(under) expenditures 33,368 4 (176,615) 510,081
Other financing sources (uses):
Transfers in - - 312,848 -
Transfers out (33,367) - (104,950) (386,517)
Total other financing
sources (uses)(33,367) - 207,898 (386,517)
Net change in fund balance 1 4 31,283 123,564
Fund balance, beginning of year 1,247,062 50,763 1,526,588 368,032
Prior year restatements - - - -
Fund balance (deficit),
beginning of year, as restated 1,247,062 50,763 1,526,588 368,032
Fund balance (deficit),
end of year 1,247,063$ 50,767$ 1,557,871$ 491,596$
(Continued)
Special Revenue Funds
172
Page 376 of 525
City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
SB1 Road Repair
SB1186 ASP
Certify
Affordable
Housing BEGIN
Loan Fund
Avila Ranch DPA
Fund
Revenues:
Use of money and property 3,107$ 10,283$ 18,058$ -$
Subventions and grants 1,328,542 - - -
Charges for services - 28,247 - -
Property tax - - - -
Other revenues - - - 40,000
Total revenues 1,331,649 38,530 18,058 40,000
Expenditures:
Current:
Public safety - - - -
Transportation - - - -
Community development - 500 - 40,000
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Capital:
General Government - - - -
Transportation 1,283,811 - - -
Leisure, cultural and social services - - - -
Community development - - - -
Total expenditures 1,283,811 500 - 40,000
Excess (deficiency) of revenues over
(under) expenditures 47,838 38,030 18,058 -
Other financing sources (uses):
Transfers in - - - -
Transfers out - - - -
Total other financing
sources (uses)- - - -
Net change in fund balance 47,838 38,030 18,058 -
Fund balance, beginning of year 283,086 176,483 427,425 -
Prior year restatements - - - -
Fund balance (deficit),
beginning of year, as restated 283,086 176,483 427,425 -
Fund balance (deficit),
end of year 330,924$ 214,513$ 445,483$ -$
(Continued)
Special Revenue Funds
173
Page 377 of 525
City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
Opioid
Settlement
Fund
Asset
Forfeiture
Available
Fund
SLR PAYGO
City Share
Code
Enforcement
Abatement
Fund
Police
Evidence
Available
Fund
Revenues:
Use of money and property 9,190$ 8,667$ 3,231$ 270$ 289$
Subventions and grants - - - - -
Charges for services - - - - -
Property tax - - - - -
Other revenues 323,882 - 167,623 35,651 -
Total revenues 333,072 8,667 170,854 35,921 289
Expenditures:
Current:
Public safety - - - - -
Transportation - - - - -
Community development 56,844 - - - -
Debt service:
Principal - - - - -
Interest and fiscal charges - - - - -
Capital:
General Government - - - - -
Transportation - - - - -
Leisure, cultural and social services - - - - -
Community development - - - - -
Total expenditures 56,844 - - - -
Excess (deficiency) of revenues over
(under) expenditures 276,228 8,667 170,854 35,921 289
Other financing sources (uses):
Transfers in - - - - -
Transfers out - - - - -
Total other financing
sources (uses)- - - - -
Net change in fund balance 276,228 8,667 170,854 35,921 289
Fund balance, beginning of year - - - - -
Prior year restatements - 52,440 - - 76,503
Fund balance (deficit),
beginning of year, as restated - 52,440 - - 76,503
Fund balance (deficit),
end of year 276,228$ 61,107$ 170,854$ 35,921$ 76,792$
(Continued)
Special Revenue Funds
174
Page 378 of 525
City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
Parkland
In-Lieu Fee
Open Space
Protection
Airport Area
Impact Fee
LOVR Sub-Area
Fee
Revenues:
Use of money and property 60,969$ 3,086$ 13,592$ 15,027$
Subventions and grants - - - -
Charges for services 56,134 - - (67,478)
Property tax - - - -
Other revenues - 83,700 - -
Total revenues 117,103 86,786 13,592 (52,451)
Expenditures:
Current:
Public safety - - - -
Transportation - - - 566,788
Community development - - - -
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Capital:
General Government - - - -
Transportation - - 234,242 -
Leisure, cultural and social services 1,759,460 - - -
Community development - - - -
Total expenditures 1,759,460 - 234,242 566,788
Excess (deficiency) of revenues over
(under) expenditures (1,642,357) 86,786 (220,650) (619,239)
Other financing sources (uses):
Transfers in - - - -
Transfers out - - - -
Total other financing
sources (uses)- - - -
Net change in fund balance (1,642,357) 86,786 (220,650) (619,239)
Fund balance, beginning of year 2,241,597 13,698 391,593 616,787
Prior year restatements - - - -
Fund balance (deficit),
beginning of year, as restated 2,241,597 13,698 391,593 616,787
Fund balance (deficit),
end of year 599,240$ 100,484$ 170,943$ (2,452)$
(Continued)
Capital Projects Funds
175
Page 379 of 525
City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
Fleet Replacement
Info Tech
Replacement
Affordable
Housing
Transportation
Impact Fee
Revenues:
Use of money and property -$ -$ 79,429$ 301,828$
Subventions and grants 15,000 392,317 (600) -
Charges for services - 137,638 219,117 1,496,794
Property tax - - - -
Other revenues 98,173 8,102 - -
Total revenues 113,173 538,057 297,946 1,798,622
Expenditures:
Current:
Public safety - - - -
Transportation - - - -
Community development - - - -
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Capital:
General Government - 615,364 - -
Transportation - - - 459,342
Leisure, cultural and social services - - - -
Community development 990,520 - - -
Total expenditures 990,520 615,364 - 459,342
Excess (deficiency) of revenues over
(under) expenditures (877,347) (77,307) 297,946 1,339,280
Other financing sources (uses):
Transfers in 783,000 1,446,656 - -
Transfers out - (302,000) (207,000) (280,000)
Total other financing
sources (uses)783,000 1,144,656 (207,000) (280,000)
Net change in fund balance (94,347) 1,067,349 90,946 1,059,280
Fund balance, beginning of year 2,583,394 2,982,639 8,540,730 6,100,163
Prior year restatements - - 70,655 -
Fund balance (deficit),
beginning of year, as restated 2,583,394 2,982,639 8,611,385 6,100,163
Fund balance (deficit),
end of year 2,489,047$ 4,049,988$ 8,702,331$ 7,159,443$
(Continued)
Capital Projects Funds
176
Page 380 of 525
City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
Infrastructure
Parkland
Development
Impact Fee-
Citywide OASP Park MASP Park
Revenues:
Use of money and property -$ 67,166$ 102,398$ 162,040$
Subventions and grants 105,106 - - -
Charges for services - 200,304 84,355 -
Property tax - - - -
Other revenues - - - -
Total revenues 105,106 267,470 186,753 162,040
Expenditures:
Current:
Public safety - - - -
Transportation - - - -
Community development - - - -
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Capital:
General Government - - - -
Transportation 28 - - -
Leisure, cultural and social services - - 245,981 -
Community development - - - -
Total expenditures 28 - 245,981 -
Excess (deficiency) of revenues over
(under) expenditures 105,078 267,470 (59,228) 162,040
Other financing sources (uses):
Transfers in 5,671,972 - - -
Transfers out (105,106) - - -
Total other financing
sources (uses)5,566,866 - - -
Net change in fund balance 5,671,944 267,470 (59,228) 162,040
Fund balance, beginning of year 13,215,383 1,246,760 2,116,014 3,292,560
Prior year restatements - - - -
Fund balance (deficit),
beginning of year, as restated 13,215,383 1,246,760 2,116,014 3,292,560
Fund balance (deficit),
end of year 18,887,327$ 1,514,230$ 2,056,786$ 3,454,600$
(Continued)
Capital Projects Funds
177
Page 381 of 525
City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
OASP
Transportation
Impact Fee Fire Impact Fee Police Impact Fee
Park Improvement
Impact Fee-
Citywide
Revenues:
Use of money and property 82,225$ 22,402$ 26,296$ 106,955$
Subventions and grants - - - -
Charges for services 309,330 90,290 165,112 133,286
Property tax - - - -
Other revenues - - - -
Total revenues 391,555 112,692 191,408 240,241
Expenditures:
Current:
Public safety - - - -
Transportation - - - -
Community development - - - -
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Capital:
General Government - - - -
Transportation - - - -
Leisure, cultural and social services - - - 173,120
Community development - - - -
Total expenditures - - - 173,120
Excess (deficiency) of revenues over
(under) expenditures 391,555 112,692 191,408 67,121
Other financing sources (uses):
Transfers in - - - -
Transfers out - - - -
Total other financing
sources (uses)- - - -
Net change in fund balance 391,555 112,692 191,408 67,121
Fund balance, beginning of year 1,473,245 398,564 448,419 2,176,585
Prior year restatements - - - -
Fund balance (deficit),
beginning of year, as restated 1,473,245 398,564 448,419 2,176,585
Fund balance (deficit),
end of year 1,864,800$ 511,256$ 639,827$ 2,243,706$
(Continued)
Capital Projects Funds
178
Page 382 of 525
City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
SLR
Transportation
Impact Fee
Public Safety
Equipment
Replacement Fund Debt Service
Total Nonmajor
Governmental
Funds
Revenues:
Use of money and property 119,282$ -$ 2$ 1,371,611$
Subventions and grants - - - 3,498,471
Charges for services 329,502 - - 5,800,980
Property tax - - - 539,453
Other revenues - - - 758,651
Total revenues 448,784 - 2 11,969,166
Expenditures:
Current:
Public safety - 307,329 - 463,337
Transportation - - - 566,788
Community development - - - 2,485,698
Debt service:
Principal - - 1,098,975 1,098,975
Interest and fiscal charges - - 634,814 634,814
Capital:
General Government - - - 615,364
Transportation - - - 1,977,423
Leisure, cultural and social services - - - 2,481,703
Community development - - - 990,520
Total expenditures - 307,329 1,733,789 11,314,622
Excess (deficiency) of revenues over
(under) expenditures 448,784 (307,329) (1,733,787) 654,544
Other financing sources (uses):
Transfers in - 387,334 1,757,889 10,359,699
Transfers out - - - (2,959,717)
Total other financing
sources (uses)- 387,334 1,757,889 7,399,982
Net change in fund balance 448,784 80,005 24,102 8,054,526
Fund balance, beginning of year 2,157,823 428,971 (158,557) 55,769,033
Prior year restatements - - 91,366 290,964
Fund balance (deficit),
beginning of year, as restated 2,157,823 428,971 (67,191) 56,059,997
Fund balance (deficit),
end of year 2,606,607$ 508,976$ (43,089)$ 64,114,523$
Capital Projects Funds
179
Page 383 of 525
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Charges for services
Assessments 280,900$ 280,900$ 319,279$ 38,379$
Total Revenues 280,900 280,900 319,279 38,379
Expenditures:
Current
Community development 280,900 280,900 185,341 95,559
Total Expenditures 280,900 280,900 185,341 95,559
Excess of Revenues Over Expenditures - - 133,938 133,938
Net Change in Fund Balance - - 133,938 133,938
Fund Balance, Beginning of Year (133,562) (133,562) (133,562) -
Fund Balance, End of Year (133,562)$ (133,562)$ 376$ 133,938$
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2025
Downtown Business Improvement District Fund
Budget
180
Page 384 of 525
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Subventions and grants 90,000$ 90,000$ 66,918$ (23,082)$
Total Revenues 90,000 90,000 66,918 (23,082)
Excess of Revenues Over Expenditures 90,000 90,000 66,918 (23,082)
Other Financing Uses:
Operating transfers out (90,000) (90,000) (90,000) -
Net Change in Fund Balance - - (23,082) (23,082)
Fund Balance, Beginning of Year 33,132 33,132 33,132 -
Fund Balance, End of Year 33,132$ 33,132$ 10,050$ (23,082)$
Transportation Development Act (TDA)
Budget
181
Page 385 of 525
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Use of money and property -$ -$ 56,468$ 56,468$
Assessments 2,117,251 2,117,251 2,248,296 131,045
Total Revenues 2,117,251 2,117,251 2,304,764 187,513
Expenditures:
Current
Community development 2,103,944 2,223,194 2,152,578 70,616
Total Expenditures 2,103,944 2,223,194 2,152,578 70,616
Excess of Revenues Over (Under) Expenditures 13,307 (105,943) 152,186 258,129
Other Financing Uses:
Operating transfers out (43,545) (42,345) (44,914) (2,569)
Net Change in Fund Balance (30,238) (148,288) 107,272 255,560
Fund Balance, Beginning of Year 1,523,656 1,523,656 1,523,656 -
Fund Balance, End of Year 1,493,418$ 1,375,368$ 1,630,928$ 255,560$
Tourism Business Improvement District Fund
Budget
182
Page 386 of 525
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Subventions and grants 1,419,353$ 1,419,353$ 1,405,863$ (13,490)$
Total Revenues 1,419,353 1,419,353 1,405,863 (13,490)
Excess of Revenues Over Expenditures 1,419,353 1,419,353 1,405,863 (13,490)
Other Financing Uses:
Operating transfers out (1,419,353) (1,419,353) (1,405,863) 13,490
Net Change in Fund Balance - - - -
Fund Balance, Beginning of Year - - - -
Fund Balance, End of Year -$ -$ -$ -$
Gas Tax
Budget
183
Page 387 of 525
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Subventions and grants -$ -$ 33,368$ 33,368$
Total Revenues - - 33,368 33,368
Excess of Revenues Over (Under) Expenditures - - 33,368 33,368
Other Financing Uses:
Operating transfers out - - (33,367) (33,367)
Net Change in Fund Balance - - 1 1
Fund Balance, Beginning of Year, as restated 1,247,062 1,247,062 1,247,062 -
Fund Balance, End of Year 1,247,062$ 1,247,062$ 1,247,063$ 1$
Community Development Block Grant (CDBG) Fund
Budget
184
Page 388 of 525
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Subventions and grants 129,250$ 129,250$ 151,957$ 22,707$
Charges for services 2,142 2,142 288 (1,854)
Other revenues 1,520 1,520
Total Revenues 131,392 131,392 156,012 24,620
Expenditures:
Public Safety - 16,250 156,008 (139,758)
Total Expenditures - 16,250 156,008 (139,758)
Excess of Revenues Over (Under) Expenditures 131,392 115,142 4 (115,138)
Net Change in Fund Balance 131,392 115,142 4 (115,138)
Fund Balance, Beginning of Year 50,763 50,763 50,763 -
Fund Balance, End of Year 182,155$ 165,905$ 50,767$ (115,138)$
Budget
Law Enforcement Grants Fund
185
Page 389 of 525
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Use of money and property -$ -$ 76,041$ 76,041$
Other revenues 15,000 15,000 50,486 35,486
Total Revenues 15,000 15,000 126,527 111,527
Expenditures:
Capital Projects 116,131 742,212 303,142 439,070
Total Expenditures 116,131 742,212 303,142 439,070
Excess of Revenues Over (Under) Expenditures (101,131) (727,212) (176,615) 550,597
Other Financing Uses:
Operating transfers in - 300,000 312,848 12,848
Operating transfers out - (104,950) (104,950) -
Total Other Financing Uses - 195,050 207,898 12,848
Net Change in Fund Balance (101,131) (832,162) 31,283 563,445
Fund Balance, Beginning of Year 1,526,588 1,526,588 1,526,588 -
Fund Balance, End of Year 1,425,457$ 694,426$ 1,557,871$ 563,445$
Budget
Public Art Contributions Fund
186
Page 390 of 525
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Use of money and property -$ -$ 21,063$ 21,063$
Property tax - - 539,453 539,453
Other revenues 523,648 523,648 - (523,648)
Total Revenues 523,648 523,648 560,516 36,868
Expenditures:
Community Development 199,000 244,884 50,435 194,449
Total Expenditures 199,000 244,884 50,435 194,449
Excess of Revenues Over (Under) Expenditures 324,648 278,764 510,081 (157,581)
Other Financing Uses:
Operating transfers out (110,814) 110,814 (386,517) (497,331)
Net Change in Fund Balance 213,834 389,578 123,564 (654,912)
Fund Balance, Beginning of Year 368,032 368,032 368,032 -
Fund Balance, End of Year 581,866$ 757,610$ 491,596$ (654,912)$
Budget
Avila Ranch CFD
187
Page 391 of 525
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Use of money and property -$ -$ 3,107$ 3,107$
Subventions and grants 1,092,000 1,092,000 1,328,542 236,542
Total Revenues 1,092,000 1,092,000 1,331,649 239,649
Expenditures:
Capital Projects 1,311,791 1,328,176 1,283,811 44,365
Total Expenditures 1,311,791 1,328,176 1,283,811 44,365
Excess of Revenues Over (Under) Expenditures (219,791) (236,176) 47,838 284,014
Net Change in Fund Balance (219,791) (236,176) 47,838 284,014
Fund Balance, Beginning of Year 283,086 283,086 283,086 -
Fund Balance, End of Year 63,295$ 46,910$ 330,924$ 284,014$
Budget
SB1 Road Repair Fund
188
Page 392 of 525
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Use of money and property -$ -$ 10,283$ 10,283$
Charges for services - - 28,247 28,247
Total Revenues - - 38,530 38,530
Expenditures:
Community Development 25,000 25,000 500 24,500
Total Expenditures 25,000 25,000 500 24,500
Excess of Revenues Over (Under) Expenditures (25,000) (25,000) 38,030 63,030
Net Change in Fund Balance (25,000) (25,000) 38,030 63,030
Fund Balance, Beginning of Year 176,483 176,483 176,483 -
Fund Balance, End of Year 151,483$ 151,483$ 214,513$ 63,030$
Budget
SB1186 CASP Certify
189
Page 393 of 525
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Use of money and property -$ -$ 18,058$ 18,058$
Total Revenues - - 18,058 18,058
Excess of Revenues Over (Under) Expenditures - - 18,058 18,058
Net Change in Fund Balance - - 18,058 18,058
Fund Balance, Beginning of Year 427,425 427,425 427,425 -
Fund Balance, End of Year 427,425$ 427,425$ 445,483$ 18,058$
Affordable Housing BEGIN Loan Fund
Budget
190
Page 394 of 525
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Other revenues - - 40,000 40,000
Total Revenues - - 40,000 40,000
Expenditures:
Community Development - - 40,000 (40,000)
Total Expenditures - - 40,000 (40,000)
Excess of Revenues Over (Under) Expenditures - - - -
Net Change in Fund Balance - - - -
Fund Balance, Beginning of Year - - - -
Fund Balance, End of Year -$ -$ -$ -$
Avila Ranch DPA Fund
Budget
191
Page 395 of 525
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Use of money and property -$ -$ 9,190$ 9,190$
Other revenues - - 323,882 323,882
Total Revenues - - 333,072 333,072
Expenditures:
Community Development - - 56,844 (56,844)
Total Expenditures - - 56,844 (56,844)
Excess of Revenues Over (Under) Expenditures - - 276,228 276,228
Net Change in Fund Balance - - 276,228 276,228
Fund Balance, Beginning of Year - - - -
Fund Balance, End of Year -$ -$ 276,228$ 276,228$
Opioid Settlement Fund
Budget
192
Page 396 of 525
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Use of money and property -$ -$ 8,667$ 8,667$
Subventions and grants - - - -
Charges for services - - - -
Other revenues - - - -
Total Revenues - - 8,667 8,667
Excess of Revenues Over (Under) Expenditures - - 8,667 8,667
Net Change in Fund Balance - - 8,667 8,667
Fund Balance, Beginning of Year 52,440 52,440 52,440 -
Fund Balance, End of Year 52,440$ 52,440$ 61,107$ 8,667$
Budget
Asset Forfeiture Available Fund
193
Page 397 of 525
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Use of money and property -$ -$ 3,231$ 3,231$
Subventions and grants - - - -
Charges for services - - - -
Other revenues - - 167,623 167,623
Total Revenues - - 170,854 170,854
Excess of Revenues Over (Under) Expenditures - - 170,854 170,854
Net Change in Fund Balance - - 170,854 170,854
Fund Balance, Beginning of Year - - - -
Fund Balance, End of Year -$ -$ 170,854$ 170,854$
SLR PAYGO City Share
Budget
194
Page 398 of 525
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Use of money and property -$ -$ 270$ 270$
Subventions and grants - - - -
Charges for services - - - -
Other revenues - - 35,651 35,651
Total Revenues - - 35,921 35,921
Excess of Revenues Over (Under) Expenditures - - 35,921 35,921
Net Change in Fund Balance - - 35,921 35,921
Fund Balance, Beginning of Year - - - -
Fund Balance, End of Year -$ -$ 35,921$ 35,921$
Code Enforcement Abatement Fund
Budget
195
Page 399 of 525
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Use of money and property -$ -$ 289$ 289$
Total Revenues - - 289 289
Excess of Revenues Over (Under) Expenditures - - 289 289
Net Change in Fund Balance - - 289 289
Fund Balance, Beginning of Year - - - -
Fund Balance, End of Year -$ -$ 289$ 289$
Police Evidence Available Fund
Budget
196
Page 400 of 525
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Use of money and property -$ -$ 2$ 2$
Total Revenues - - 2 2
Expenditures:
Principal 1,144,989 1,144,989 1,098,975 46,014
Interest and fiscal charges 612,900 612,900 634,814 (21,914)
Total Expenditures 1,757,889 1,757,889 1,733,789 24,100
Excess of Revenues Over (Under) Expenditures (1,757,889) (1,757,889) (1,733,787) 24,102
Other Financing Uses:
Operating transfers in 1,757,889 1,757,889 1,757,889 -
Operating transfers out - - - -
Total other Financing Uses:1,757,889 1,757,889 1,757,889 -
Net Change in Fund Balance - - 24,102 24,102
Fund Balance, Beginning of Year (67,191) (67,191) (67,191) -
Fund Balance, End of Year (67,191)$ (67,191)$ (43,089)$ 24,102$
Budget
Debt Service Fund
197
Page 401 of 525
198
Page 402 of 525
City of San Luis Obispo, California
Custodial Funds
For the Fiscal Year Ended June 30, 2025
The City of San Luis Obispo has established the following agency funds,which are used to account for funds held
by the City as an agent for private donations and programs operated jointly with other local agencies:
Whale Rock Fund.This fund was established to account for the financial activities of the Whale Rock Commission,
a joint venture providing water service to the City,the California Polytechnic State University,and the California
Men's Colony.
Jack House Fund .This fund was established to account for the financial activities of the Jack House Committee,
which includes the rehabilitation and use of a use of the historic Jack House property.
Hazardous Materials Task Force Fund .This fund was established to account for the financial activities of the
County task force.
General Agency Fund.This fund was established to account for a broad category of funds,including donations,
provided to the City to be utilized for specific purposes.
Boysen Ranch Conservation Easement Fund .This fund was established to account for contributions toward
obtaining a conservation easement on the Boysen Ranch property.
Cable Television Public,Educational and Government Funds (PEG)for the City of San Luis Obispo,San Luis
Coastal Unified School District (SLCUSD)and San Luis Obispo County Public Access,Inc.Public Access
Television (PAT).These funds account for collections by Charter Communications from its customers for PEG
access equipment and facilities.The City of San Luis Obispo,SLCUSD and PAT annually receive equal shares of
collections, restricted for approved uses as stipulated in the cable franchise agreement.
San Luis Ranch CFD Fund .This fund was established to account for the financial activities of the San Luis Ranch
Community Facilities District (CFD).The CFD is the City's first Mello-Roos district.Property taxes collected on
properties within the CFD will be used to pay for debt service on the related infrastructure constructed within the
district.
Avila Ranch Private Reimbursement Agreement Fund .This fund has been established to account for activities
related to reimbursements between private property owners/developers.The City facilitates payment between the
private parties.
Asset Forfeiture Pending Fund .This fund has been established to account for cash related to unresolved asset
forfeiture cases.
SWAT Task Force Fund .This fund has been established to account for activities related to the Regional SWAT
Task Force. The City provides accounting services for the Task Force.
Police Evidence Pending Fund .This fund has been established to account for cash seized as evidence while
awaiting criminal case resolution.
199
Page 403 of 525
City of San Luis Obispo
Combining Statement of Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2025
Hazardous General Boysen Ranch
Whale Jack Materials Task Agency Conservation
Rock Fund House Fund Force Fund Fund Easement
ASSETS
Cash and investments 6,284,413$ 21,618$ 171,286$ 16,619,026$ 425,769$
Receivables:
Accounts 409,558 - - - -
Interest 29,615 101 805 - 1,992
Capital assets 687,561 - - - -
Total assets 7,411,147 21,719 172,091 16,619,026 427,761
LIABILITIES
Accounts payable 94,014 - - 141,162 -
Compensated absence 48,661 - - - -
Accrued Salaries 18,397 - - - -
Other liabilities 2,000 - - - -
Total liabilities 163,072 - - 141,162 -
NET POSITION
Restricted for
Individuals, organizations, and
other governments 7,248,075 21,719 172,091 16,477,864 427,761
Total net position 7,248,075$ 21,719$ 172,091$ 16,477,864$ 427,761$
(Continued)
200
Page 404 of 525
City of San Luis Obispo
Combining Statement of Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2025
PEG City of PEG San Luis Ranch Avila Ranch Private
San Luis Obispo SLCUSD CFD Reimbursement Agreement
ASSETS
Cash and investments 181,366$ 82,644$ 13,469,834$ 479,549$
Receivables:
Accounts 15,758 4 11,637 -
Interest 984 232 4,651 -
Capital assets - - - -
Total assets 198,108 82,880 13,486,122 479,549
LIABILITIES
Accounts payable 8,713 - 945 -
Compensated absence - - - -
Accrued Salaries - - - -
Other liabilities - 8,713 - -
Total liabilities 8,713 8,713 945 -
NET POSITION
Restricted for
Individuals, organizations, and other
governments 189,395 74,167 13,485,177 479,549
Total net position 189,395$ 74,167$ 13,485,177$ 479,549$
(Continued)
201
Page 405 of 525
City of San Luis Obispo
Combining Statement of Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2025
Total
Asset SWAT Task Police Evidence Custodial
Forfeiture Pending Force Fund Pending Fund Funds
ASSETS
Cash and investments 18,827$ 30,583$ 72,606$ 37,857,521$
Receivables:
Accounts - - - 436,957
Interest 90 144 86 38,700
Capital assets - - - 687,561
Total assets 18,917 30,727 72,692 39,020,739
LIABILITIES
Accounts payable - - - 244,834
Compensated absence - - - 48,661
Accrued Salaries - - - 18,397
Other liabilities - - - 10,713
Total liabilities - - - 322,605
NET POSITION
Restricted for
Individuals, organizations, and other
governments 18,917 30,727 72,692 38,698,134
Total net position 18,917$ 30,727$ 72,692$ 38,698,134$
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Hazardous General Boysen Ranch
Whale Jack Materials Task Agency Conservation
Rock Fund House Fund Force Fund Fund Easement
ADDITIONS:
Charges for services 1,310,027$ -$ -$ -$ -$
Other revenue 1,505,202 5 69,745 896,926 -
Use of money and property 314,858 1,019 9,920 - 20,157
Total additions 3,130,087 1,024 79,665 896,926 20,157
DEDUCTIONS:
Administration expenses 252,099 - - -
Contractual services 1,695,310 - - 5,023
Materials and supplies 86,748 - 98,249 - -
Use of developer deposits - - - 742,929 -
Depreciation 63,283 - - - -
Total deductions 2,097,440 - 98,249 742,929 5,023
Net increase (decrease) in
fiduciary net position 1,032,647 1,024 (18,584) 153,997 15,134
NET POSITION:
Beginning of year 6,215,428 20,695 190,675 16,533,673 412,627
Prior Period Adjustment - - - (209,806) -
Beginning of year, as restated 6,215,428 20,695 190,675 16,323,867 412,627
End of year 7,248,075$ 21,719$ 172,091$ 16,477,864$ 427,761$
(Continued)
City of San Luis Obispo
Combining Statement of Changes in Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2025
203
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City of San Luis Obispo
Combining Statement of Changes in Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2025
PEG City of PEG San Luis Ranch Avila Ranch Private
San Luis Obispo SLCUSD CFD Reimbursement Agreement
ADDITIONS:
Charges for services -$ -$ -$ -$
Other revenue 33,003 33,003 1,345,180 479,549
Use of money and property 8,729 2,223 566,744 -
Total additions 41,732 35,226 1,911,924 479,549
DEDUCTIONS:
Administration expenses - - 1,354,427 -
Contractual services - - - -
Materials and supplies - - - -
Use of developer deposits - - - -
Depreciation - - - -
Total deductions - - 1,354,427 -
Net increase (decrease) in fiduciary net
position 41,732 35,226 557,497 479,549
NET POSITION:
Beginning of year, 147,663 38,941 12,927,680 -
Prior Period Adjustment - - - -
Beginning of year, as restated 147,663 38,941 12,927,680 -
End of year 189,395$ 74,167$ 13,485,177$ 479,549$
(Continued)
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City of San Luis Obispo
Combining Statement of Changes in Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2025
Total
Asset SWAT Task Police Evidence Custodial
Forfeiture Pending Force Fund Pending Fund Funds
ADDITIONS:
Charges for services -$ -$ -$ 1,310,027$
Other revenue 23,673 30,625 - 4,416,911
Use of money and property 440 689 274 925,053
Total additions 24,113 31,314 274 6,651,991
DEDUCTIONS:
Administration expenses - 587 - 1,607,113
Contractual services 13,640 - - 1,713,973
Materials and supplies - - - 184,997
Use of developer deposits - - - 742,929
Depreciation - - - 63,283
Total deductions 13,640 587 - 4,312,295
Net increase (decrease) in fiduciary net
position 10,473 30,727 274 2,339,696
NET POSITION:
Beginning of year, - - - 36,487,382
Prior Period Adjustment 8,444 - 72,418 (128,944)
Beginning of year, as restated 8,444 - 72,418 36,358,438
End of year 18,917$ 30,727$ 72,692$ 38,698,134$
205
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206
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STATISTICAL SECTION (UNAUDITED)
207
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208
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City of San Luis Obispo, California
Statistical Section Overview
For the Fiscal Year Ended June 30, 2025
This part of the City of San Luis Obispo’s annual comprehensive financial report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the government’s overall financial health.
Contents
Financial Trends – Schedules 1-6 . These schedules contain trend information to help the reader understand how
the City’s financial performance and well-being have changed over time.
Revenue Capacity – Schedules 7-13 . These schedules contain information to help the reader assess the
government’s most significant local revenue sources, sales and property taxes.
Debt Capacity – Schedules 14-19 . These schedules present information to help the reader assess the affordability of
the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.
Demographic and Economic Information – Schedules 20-22 . These schedules offer demographic and economic
indicators to help the reader understand the environment within which the government’s financial activities take
place.
Operating Information – Schedules 23-26 . These schedules contain service and infrastructure data to help the
reader understand how the information in the City’s financial report relates to the services the government provides
209
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2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Governmental activities:
Net investment in capital assets 163,449,992$ 165,100,426$ 171,472,251$ 174,431,254$ 177,335,648$ 184,387,289$ 193,984,593$ 205,324,234$ 228,447,288$ 241,392,407$
Restricted 2,762,387 2,268,499 421,954 20,458,677 29,901,136 35,603,121 41,770,187 43,626,006 35,753,131 38,939,635
Unrestricted (49,031,893) (41,496,841) (49,909,657) (72,041,172) (73,806,116) (62,369,688) (57,458,111) (29,876,424) (14,403,912) 3,447,348
Total governmental activities net position 117,180,486$ 125,872,084$ 121,984,548$ 122,848,759$ 133,430,668$ 157,620,722$ 178,296,669$ 219,073,816$ 249,796,507$ 283,779,390$
Business-type activities:
Net investment in capital assets 128,390,611$ 131,149,516$ 136,694,402$ 139,659,544$ 149,617,018$ 160,750,886$ 157,728,990$ 170,471,787$ 183,458,877$ 200,340,066$
Restricted 2,278,392 2,276,526 1,558,795 500,645 4,037,611 2,493,859 2,684,781 1,653,225 10,976,119 6,470,313
Unrestricted 49,495,220 53,421,102 50,866,147 57,379,689 53,983,005 53,159,080 79,970,715 88,160,609 81,095,190 94,710,986
Total business-type activities net position 180,164,223$ 186,847,144$ 189,119,344$ 197,539,878$ 207,637,634$ 216,403,825$ 240,384,486$ 260,285,621$ 275,530,186$ 301,521,365$
Primary government (City wide totals):
Net investment in capital assets 291,840,603$ 296,249,942$ 308,166,653$ 314,090,798$ 326,952,666$ 345,138,175$ 351,713,583$ 375,796,021$ 411,906,165$ 441,732,473$
Restricted 5,040,779 4,545,025 1,980,749 20,959,322 33,938,747 38,096,980 44,454,968 45,279,231 46,729,250 45,409,948
Unrestricted 463,327 11,924,261 956,490 (14,661,483) (19,823,111) (9,210,608) 22,512,604 58,284,185 66,691,278 98,158,334
Total primary government net position 297,344,709$ 312,719,228$ 311,103,892$ 320,388,637$ 341,068,302$ 374,024,547$ 418,681,155$ 479,359,437$ 525,326,693$ 585,300,755$
Schedule 1
City of San Luis Obispo, California
Net Assets by Component
Last Ten Fiscal Years
(Accrual basis of accounting)
$-
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
Governmental vs Business-type Net Position
Total business-type activities net position
Total governmental activities net position
$(100,000,000)
$-
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
Net Position by Component
Net investment in capital assets
Restricted
Unrestricted
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2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Expenses:
Governmental activities:
Public safety 29,318,821$ 31,806,692$ 42,097,557$ 34,320,108$ 34,670,383$ 35,226,779$ 41,132,177$ 26,828,837$ 43,148,712$ 47,552,699$
Transportation 8,792,028 9,668,840 9,229,042 7,546,278 7,416,335 8,137,479 10,395,516 10,052,069 17,740,407 12,159,073
Culture and recreation 9,808,545 9,824,262 11,125,792 9,469,520 10,063,304 11,122,003 12,407,720 11,552,865 12,871,004 13,669,496
Community development 12,900,275 14,656,604 13,457,993 12,573,953 11,882,018 11,918,019 15,506,092 14,768,484 19,527,448 16,190,977
General Government - - - 22,429,785 22,058,724 17,276,491 20,982,321 25,628,303 22,777,642 20,980,453
Capital Outlay - - - - - - - - - 3,429,399
Interest on long-term debt 1,351,468 1,170,984 1,488,183 702,885 839,661 731,045 699,284 681,023 615,966 569,642
Total governmental activities expenses 62,171,137 67,127,382 77,398,567 87,042,529 86,930,425 84,411,816 101,123,110 89,511,581 116,681,179 114,551,739
Business-type activities:
Water 18,136,120 19,069,967 19,523,736 20,986,430 22,914,013 21,469,967 20,892,863 22,152,285 25,666,319 28,092,545
Sewer 10,842,451 11,683,262 14,158,612 13,967,717 13,100,905 15,064,551 12,576,058 13,417,264 22,831,476 16,792,057
Parking 3,900,052 3,791,493 4,098,840 4,088,681 4,145,364 4,057,242 4,517,125 5,063,501 8,962,908 8,617,493
Transit 4,088,423 4,076,871 4,355,103 4,320,976 4,384,344 4,023,536 3,851,264 4,482,763 5,352,380 6,358,316
Total business-type activities expenses 36,967,046 38,621,593 42,136,291 43,363,804 44,544,626 44,615,296 41,837,310 45,115,813 62,813,083 59,860,411
Total primary government expenses 99,138,183$ 105,748,975$ 119,534,858$ 130,406,333$ 131,475,051$ 129,027,112$ 142,960,420$ 134,627,394$ 179,494,262$ 174,412,150$
Program Revenues:
Governmental activities:
Charges for services:
Public safety 1,673,800$ 1,771,383$ 1,881,725$ 1,633,223$ 3,045,294$ 3,991,193$ 3,197,692$ 2,847,705$ 3,378,182$ 4,272,202$
Transportation 1,691,757 1,793,010 1,669,563 2,399,692 531,424 91,509 636,874 955,012 1,157,342 438,239
Culture and recreation 2,048,780 3,501,837 3,487,225 4,078,539 2,508,565 3,430,224 4,046,439 4,234,538 4,761,048 5,298,964
Community development 7,974,880 8,144,128 7,355,831 9,941,951 11,812,417 15,929,420 10,509,106 10,164,525 9,717,278 9,135,208
General Government - - - 1,391,940 760,606 654,039 530,775 734,991 801,522 930,439
Operating grants and contributions 2,667,058 2,488,706 4,015,502 2,990,211 4,828,837 3,601,973 3,647,813 5,331,657 15,156,040 6,363,136
Capital grants and contributions 9,355,707 40,531 39,781 47,234 2,504,722 5,688,200 1,531,157 200,933 1,299,231 5,586,809
Total governmental activities program revenues 25,411,982 17,739,595 18,449,627 22,482,790 25,991,865 33,386,558 24,099,856 24,469,361 36,270,643 32,024,997
Business-type activities:
Charges for services:
Water 19,884,850$ 20,180,931$ 22,202,069$ 24,026,385$ 25,666,777$ 28,340,076$ 29,894,129$ 27,720,676$ 31,394,962$ 34,356,427$
Sewer 16,460,140 16,272,533 16,753,094 18,674,547 19,042,384 21,501,546 23,642,048 22,341,314 23,302,912 24,096,372
Parking 7,408,729 4,666,970 5,226,780 5,443,038 3,293,941 2,567,908 4,890,317 6,022,372 9,663,683 8,307,559
Transit 659,471 666,296 703,451 776,808 633,566 331,352 713,777 809,969 1,003,116 990,738
Operating grants and contributions 2,888,820 4,180,386 3,099,618 3,259,975 4,712,832 3,742,594 5,156,782 7,355,896 6,762,934 8,054,586
Capital grants and contributions - - - - - - - - - 4,712,879
Total business-type activities programs revenues 47,302,010 45,967,116 47,985,012 52,180,753 53,349,500 56,483,476 64,297,053 64,250,227 72,127,607 80,518,561
Total primary government program revenues 72,713,992$ 63,706,711$ 66,434,639$ 74,663,543$ 79,341,365$ 89,870,034$ 88,396,909$ 88,719,588$ 108,398,250$ 112,543,558$
Net Revenues (Expenses):
Governmental activities (36,759,155)$ (49,387,787)$ (58,948,940)$ (64,559,739)$ (60,938,560)$ (51,025,258)$ (77,023,254)$ (65,042,220)$ (80,410,536)$ (82,526,742)$
Business-type activities 10,334,964 7,345,523 5,848,721 8,816,949 8,804,874 11,868,180 22,459,743 19,134,414 9,314,524 20,658,150
Total primary government (26,424,191)$ (42,042,264)$ (53,100,219)$ (55,742,790)$ (52,133,686)$ (39,157,078)$ (54,563,511)$ (45,907,806)$ (71,096,012)$ (61,868,592)$
Continued
Schedule 2
City of San Luis Obispo, California
Changes in Net Position, Last Ten Fiscal Years
(Accrual Basis of Accounting)
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2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
General Revenues and Other Changes in Net Position:
Governmental activities:
Sales and use taxes 24,676,377$ 24,068,665$ 24,559,570$ 26,444,775$ 24,125,439$ 32,847,453$ 51,419,561$ 52,374,199$ 52,883,260$ 53,837,371$
Property taxes 10,186,858 10,756,477 11,425,510 12,238,357 13,301,736 14,197,869 14,716,412 15,635,545 16,381,159 17,240,694
Transient occupancy tax 7,127,756 7,381,989 7,514,289 8,061,087 6,325,841 6,960,035 10,650,762 11,037,037 11,063,012 11,417,888
Utility users tax 5,413,720 5,539,407 5,627,356 4,919,892 5,439,144 5,225,979 5,338,325 6,904,194 6,301,505 7,501,436
Property tax in-lieu of vehicle license fees 4,113,244 4,353,912 4,637,253 4,961,080 5,290,215 5,660,661 5,994,592 6,283,397 6,815,975 7,273,431
Other taxes and fees 4,800,592 3,929,377 5,006,594 4,332,557 4,883,677 5,578,944 5,800,333 7,216,335 7,209,793 7,601,061
Investment earnings 825,760 997,995 164,434 1,618,354 3,368,951 435,818 (1,638,993) 2,350,922 6,473,385 6,691,998
Miscellaneous and other - - - 146,579 1,001,369 1,019,626 1,213,401 1,774,126 1,369,106 1,439,962
Prior period adjustment - - - - - 745,285 - - -
Transfers 1,436,048 1,051,563 1,198,027 2,456,035 1,889,900 1,992,911 1,685,314 2,243,612 2,636,032 3,214,820
Total governmental activities 58,580,355 58,079,385 60,133,033 65,178,716 65,626,272 74,664,581 95,179,707 105,819,367 111,133,227 116,218,661
Business-type activities
Investment earnings 845,906$ 182,261$ 320,471$ 2,516,216$ 2,880,634$ 577,250$ (1,207,118)$ 2,618,340$ 8,367,903$ 8,639,215$
Income from investment in joint venture 239,200 206,700 209,300 (25,469) 153,949 519,677 585,101 391,993 198,170 -
Prior period adjustment - - - - - (907,350) - - -
Transfers (1,436,048) (1,051,563) (1,198,027) (2,456,035) (1,889,900) (1,992,911) (1,685,314) (2,243,612) (2,636,032) (3,214,820)
Total business-type activities (350,942) (662,602) (668,256) 34,712 1,144,683 (1,803,334) (2,307,331) 766,721 5,930,041 5,424,395
Total primary government 58,229,413$ 57,416,783$ 59,464,777$ 65,213,428$ 66,770,955$ 72,861,247$ 92,872,376$ 106,586,088$ 117,063,268$ 121,643,056$
Change in net position:
Governmental activities 21,821,200$ 8,691,598$ 1,184,093$ 618,977$ 4,687,712$ 23,639,323$ 18,156,453$ 40,777,147$ 30,722,691$ 33,691,919$
Business-type activities 9,984,022 6,682,921 5,180,465 8,851,661 9,949,557 10,064,846 20,152,412 19,901,135 15,244,565 26,082,545
Total primary government 31,805,222$ 15,374,519$ 6,364,558$ 9,470,638$ 14,637,269$ 33,704,169$ 38,308,865$ 60,678,282$ 45,967,256$ 59,774,464$
Changes in Net Position, Last Ten Fiscal Years
(Accrual Basis of Accounting)
Continued
Schedule 2
City of San Luis Obispo, California
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Fiscal Sales Local Property Transient Utility Property Franchise Business Other
Year and Use Sales (Note 2)(Note 1)Occupancy Users in-lieu of VLF Fees Tax Taxes Total
2015-16 17,498,218 7,178,159 10,186,858 7,127,756 5,413,720 4,113,244 1,537,922 2,491,516 771,154 56,318,547
2016-17 16,737,005 7,331,660 10,756,477 7,381,989 5,539,407 4,353,912 1,557,128 2,372,249 737,826 56,767,653
2017-18 17,055,085 7,504,485 11,425,510 7,514,289 5,627,356 4,637,253 1,597,655 2,663,686 745,253 58,770,572
2018-19 18,119,545 8,325,230 12,238,357 8,061,087 4,919,892 4,961,080 1,428,296 2,630,499 273,762 60,957,748
2019-20 16,571,064 7,554,375 12,913,661 6,325,841 5,439,144 5,290,215 1,888,414 2,995,263 388,075 59,366,052
2020-21 20,067,740 12,779,713 14,197,869 6,960,035 5,225,979 5,660,661 1,796,829 3,782,115 425,136 70,896,077
2021-22 22,247,303 29,172,258 14,716,412 10,650,762 5,338,325 5,994,592 1,978,295 2,823,163 998,875 93,919,985
2022-23 21,865,468 30,508,731 15,635,545 11,037,037 6,904,194 6,283,397 2,349,603 3,281,010 1,585,722 99,450,707
2023-24 22,285,972 30,597,288 16,381,159 11,063,012 6,301,505 6,815,975 2,366,286 2,942,425 1,901,082 100,654,704
2024-25 22,911,086 30,926,285 17,240,694 11,417,888 7,501,436 7,273,431 2,622,351 3,138,272 1,840,438 104,871,881
Notes:
1)Property tax revenues are presented net of SB2557 County administrative fees (approximately 3% of total property tax revenues).
The City has elected to receive its property tax revenues based on the Teeter Plan method of collection whereby the
County remits 100% of taxes levied, pursues collection and retains any delinquent taxes and related penalties and interest.
2)In November 2014 voters in San Luis Obispo reauthorized the local half-percent sales and use tax measure (Measure G) .
In November 2020 voters in San Luis Obispo replaced the local half-percent sales and use tax with a 1.5% local sales and use tax (Measure G-20).
(Accrual Basis of Accounting)
Schedule 3
City of San Luis Obispo, California
Governmental Activities Tax and Franchise Revenues by Source
Last Ten Fiscal Years
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Revenue Trends
Sales and Use Local Sales Property Transient Occupancy Utility Users
Property in-lieu of VLF Franchise Fees Business Tax Other Taxes
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2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
General fund:
Nonspendable:
Prepaid items 56,020 3,173,248 3,520,473 51,636 - 41,155 90,797 101,462 23,481 5,533,017
Restricted for:
Debt service 489,056 128,102 159,724 - - - - - - -
Risk management - - - - - - - - - 594,469
Committed to:
General government programs 4,468,863 9,428,034 8,693,113 - - 9,299,971 5,696,864 5,307,988 1,776,826 848,111
Contingency Fund - - - - - 11,830,380 12,014,000 13,727,000 10,826,500 14,607,203
Risk management - - - - - 1,955,966 1,845,935 585,456 585,456 4,437,620
Assigned to:
CalPERS pension payment - - - - - 10,200,000 2,000,000 2,000,000 2,000,000 2,000,000
Contingency Fund 11,092,782 10,902,368 10,171,464 13,418,400 10,251,000 - - - - -
Solid Waste AB939 - - - - - - - 281,000 237,147 270,825
Establishment of Section 115 Trust - - - - 1,400,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
Revenue stabilization - - - - 1,000,000 - - 2,000,000 2,000,000 2,000,000
Development Services 382,396 41,110 596,796 531,000 899,277 710,657 530,657 464,136 214,136 145,136
SLO Repertory Theater Grant - - - - - - 3,940,000 3,940,000 3,940,000 6,700,000
Tenant Improvement program/Economic Development - - - - - - - 1,400,000 1,400,000 608,000
Storm Related Costs - - - - - - - - 5,125,068 6,034,158
General government programs - - - - - - 4,270,529 - - -
Public Safety - - - - 1,096,215 929,344 - - - -
Risk management - - - - 1,498,078 - - - - -
City Attorney - 100,000 100,000 - 100,000 100,000 - - - -
Subsequent years expenditures 2,716,534 - - 9,908,932 10,284,119 4,738,806 - 2,455,573 6,009,831 2,559,825
Unassigned 10,419,881 2,723,292 6,334,870 6,185,574 7,122,607 5,311,792 8,356,724 8,275,453 9,191,321 3,468,954
Total general fund 29,625,532 26,496,154 29,576,440 30,095,542 33,651,296 47,118,071 40,745,506 42,538,068 45,329,766 51,807,318
Continued
Schedule 4
City of San Luis Obispo, California
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
For the Fiscal Year Ended June 30
214
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2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
All other governmental funds:
Nonspendable - 5,642 (71,687) 292,641 - - 8,681 - - -
Restricted for:
Debt service 2,119,724 2,119,611 1,653,109 1,791,026 2,226,898 2,575,367 2,540,255 2,141,431 - -
Public safety programs 23,492 20,786 3,073 - 32,332 63,418 864,848 68,456 897,746 671,669
Transportation projects - - - 8,151,487 9,371,824 10,519,994 8,051,050 7,567,001 11,232,312 7,885,873
Affordable housing programs - - - 2,944,549 8,698,494 9,292,304 9,893,314 11,023,649 10,215,217 10,394,877
Impact fee programs - - - 1,870,656 3,126,925 7,466,378 8,935,786 10,519,226 - 14,891,812
Parkland development programs - - - 3,528,662 4,709,560 3,405,468 3,107,198 3,205,116 11,073,516 599,240
Public art programs - - - 620,934 591,097 568,401 798,038 1,269,844 1,526,588 1,557,871
Tourism programs - - - 456,023 322,975 678,554 1,147,881 1,426,625 1,523,656 1,631,304
Infrastructure improvements - - - - - - - 157,805 368,032 491,596
Committed to:
Affordable housing programs 2,562,825 5,054,332 3,974,629 - - - - - - -
Capital outlay 2,954,223 - - - - - - - - -
General government programs 7,463,605 - 8,092,594 - - - - - - -
Impact Fees Programs 549,349 8,795,074 595,256 - - - - - - -
Open space programs 1,265,620 588,743 2,363,347 - - - - - - -
Parkland development programs - 2,728,883 - - - - - - - -
Contingency fund - - 519,885 - - - - - - -
Public safety programs - - - - - - - 641,538 428,971 508,976
Assigned to:
Contingency fund - 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000
Subsequent years expenditures 3,559,851 5,846,873 5,861,455 6,382,294 8,521,320 8,826,420 23,533,631 29,776,252 39,636,756 57,339,904
Unassigned - - - (318,422) (149,162) (5,782) - (2,424) (292,119) (45,541)
Total all other governmental
funds 20,498,689 26,059,944 23,891,661 26,619,850 38,352,263 44,290,522 59,780,682 68,694,519 77,510,675 96,827,581
Total all governmental funds 50,124,221$ 52,556,098$ 53,468,101$ 56,715,392$ 72,003,559$ 91,408,593$ 100,526,188$ 111,232,587$ 122,840,441$ 148,634,899$
(Modified Accrual Basis of Accounting)
For the Fiscal Year Ended June 30
Continued
Schedule 4
City of San Luis Obispo, California
Fund Balances, Governmental Funds
Last Ten Fiscal Years
215
Page 419 of 525
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Revenues:
Sales and use - general 17,498,218$ 16,737,005$ 17,055,085$ 17,805,482$ 16,571,064$ 20,067,740$ 22,247,303$ 21,865,468$ 22,285,972$ 22,911,086$
Sales and Use - local transaction tax 7,178,159 7,331,660 7,504,485 8,325,230 7,554,375 12,779,713 29,172,258 30,508,731 30,597,288 30,926,285
Prop. 172 Public Safety tax 405,066 405,512 397,488 314,063 416,459 425,136 529,299 544,521 520,952 519,740
Property tax 10,186,858 10,756,477 11,425,510 12,238,357 12,913,661 13,727,986 14,166,259 15,635,545 16,637,657 17,781,938
Transient Occupancy 7,127,756 7,381,989 7,514,289 8,061,087 6,325,841 6,960,035 10,650,762 11,037,037 11,063,012 11,417,888
Utility users tax 5,413,720 5,539,407 5,627,356 4,919,892 5,439,144 5,225,979 5,338,325 6,904,194 6,301,505 7,501,436
Property tax in-lieu of VLF 4,113,244 4,353,912 4,637,253 4,961,080 5,290,215 5,660,661 5,994,592 6,283,397 6,815,975 7,196,670
Franchise fees 1,537,922 1,557,128 1,597,655 1,428,296 1,888,414 1,796,829 1,978,295 2,349,603 2,366,286 2,622,351
Business tax 2,491,516 2,372,249 2,663,686 2,630,499 2,995,263 3,782,115 2,823,163 3,281,010 2,941,928 3,138,272
Cannabis tax - - - - - - 998,875 1,127,744 1,116,495 814,502
Real property transfer 366,088 332,314 347,765 273,762 388,075 469,883 550,153 457,978 528,088 484,692
Fines, forfeitures and penalties 172,353 139,534 199,374 155,269 239,048 223,882 173,915 195,991 266,103 340,172
Use of money and property 825,760 260,169 164,434 1,996,382 2,005,968 219,507 (2,151,227) 1,999,872 5,329,747 6,264,020
Subventions and grants 11,771,980 2,624,753 4,156,333 3,110,689 7,538,893 10,719,698 6,446,192 6,364,704 17,387,665 13,890,322
Charges for services 13,622,945 15,173,707 14,672,746 18,394,586 17,828,561 22,090,479 17,657,128 18,418,552 19,108,699 18,330,989
Other revenues 242,744 446,456 634,391 590,796 708,579 717,440 506,722 719,724 215,095 453,196
Total revenues 82,954,329 75,412,272 78,597,850 85,205,470 88,103,560 104,867,083 117,082,014 127,694,071 143,482,467 144,593,559
Continued
Schedule 5
City of San Luis Obispo, California
Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
-
50,000,000
100,000,000
150,000,000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Total Revenue
216
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2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Expenditures:
Current:
General Government 12,409,567$ 11,824,360$ 12,709,324$ 13,769,778$ 14,503,410$ 13,041,242$ 17,197,912$ 23,646,307$ 17,570,930$ 17,612,764$
Public safety 26,468,454 28,091,747 28,862,906 31,714,220 30,216,995 31,714,578 39,921,208 37,425,928 39,889,845 43,977,463
Transportation 3,317,177 3,780,804 3,565,022 3,495,909 3,710,943 4,450,572 5,131,132 5,408,704 5,557,957 8,823,908
Culture and recreation 7,428,198 7,712,834 8,571,184 8,636,582 8,416,687 9,458,448 10,440,543 11,015,177 11,088,967 12,773,680
Community development 10,770,827 10,300,894 10,815,667 10,677,334 10,477,062 11,101,465 15,067,518 14,867,023 15,345,346 15,583,291
Debt service:
Principal 1,792,849 2,101,296 15,665,904 1,974,050 1,605,239 1,602,039 1,467,402 1,859,782 1,230,724 1,459,235
Interest 1,349,216 1,215,504 1,524,180 809,977 993,697 808,586 774,747 745,735 721,853 657,135
Capital:
Public safety 1,220,759 1,772,454 506,491 706,918 182,235 107,965 248,613 1,577,415 445,716 483,540
Transportation 15,038,306 4,161,966 6,419,137 6,441,229 6,412,541 11,452,720 13,653,849 9,364,910 2,267,633 13,539,466
Leisure, cultural and social services 1,463,269 1,499,704 981,768 597,187 1,213,682 537,118 3,933,463 1,226,800 2,760,876 4,633,210
Community development (Note 1)149,537 2,078,181 525,105 1,568,147 785,517 105,142 601,315 10,202,665 36,767,232 1,111,241
General government 590,263 633,682 1,192,424 4,695,978 2,081,482 2,492,435 1,619,793 2,365,432 1,726,059 1,649,952
Total expenditures 81,998,422 75,173,426 91,339,112 85,087,309 80,599,490 86,872,310 110,057,495 119,705,878 135,373,138 122,304,885
Excess of revenues
over(under)
expenditures 955,907 238,846 (12,741,262) 118,161 7,504,070 17,994,773 7,024,519 7,988,193 8,109,329 22,288,674
Continued
Schedule 5
City of San Luis Obispo, California
Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
Continued
-
50,000,000
100,000,000
150,000,000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Total Expenditures
217
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2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Other Financing
Sources(Uses):
Issuance of debt/refunding debt 688,500$ 1,141,468$ 12,472,698$ 673,095$ -$ -$ -$ -$ (387,684)$ -$
Transfers in 12,747,578 15,739,036 19,815,144 9,064,256 9,455,785 15,460,955 35,273,279 39,735,789 53,605,957 40,232,580
Transfers out (11,311,530) (14,687,473) (18,617,117) (6,608,221) (7,565,885) (13,468,044) (33,587,965) (37,492,177) (50,969,925) (37,017,760)
Other financing source - SBITA - - - - - - - 474,594 137,233 -
Total other financing sources(uses)2,124,548 2,193,031 13,670,725 3,129,130 1,889,900 1,992,911 1,685,314 2,718,206 2,385,581 3,214,820
Net change in fund balance 3,080,455$ 2,431,877$ 929,463$ 3,247,291$ 9,393,970$ 19,987,684$ 8,709,833$ 10,706,399$ 10,494,910$ 25,503,494$
Debt service as a
percentage of noncapital
expenditures 5.20%5.37%26.64%4.08%3.86%3.46%2.55%2.82%2.18%2.14%
Notes:
1. Community Development Block Grant (CDBG) expenditures are included in the Community Development total for purposes of this schedule.
2. Prior to 2021-22, cannabis tax was included in business tax
Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
Continued
Schedule 5
City of San Luis Obispo, California
-
50,000,000
100,000,000
150,000,000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Revenue, Expenditures, and Other
Revenue Expenditures Other Financing Sources
218
Page 422 of 525
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Staffing:
Salaries and wages:
Regular salaries 24,790,947$ 26,944,188$ 26,666,447$ 27,520,149$ 28,601,004$ 29,014,941$ 31,822,988$ 35,422,024$ 38,125,168$ 40,660,998$
Temporary salaries 1,964,521 1,793,360 1,711,755 1,898,331 1,882,307 2,294,603 1,855,690 1,942,485 2,237,584 2,335,656
Overtime 3,473,489 3,604,336 4,420,756 4,241,294 3,292,469 4,527,789 4,412,287 4,504,561 4,443,880 5,623,060
Benefits:
Retirement 9,323,782 10,394,523 10,570,883 15,150,755 12,593,753 13,344,252 24,665,892 17,908,383 17,782,639 20,327,231
Group health/disability insurance 3,828,238 4,129,004 4,638,471 4,193,021 4,291,139 4,040,575 4,327,121 5,130,991 5,487,733 5,806,160
Medicare 418,704 455,966 469,688 477,925 481,571 505,450 537,516 593,725 631,755 682,664
Unemployment Reimbursements 5,159 150,929 61,972 - 61,240 101,575 17,484 41,464 40,438 53,758
Total staffing 43,804,840 47,472,306 48,539,972 53,481,475 51,203,483 53,829,185 67,638,979 65,543,634 68,749,198 75,489,526
Contract services 6,271,607 6,962,949 6,940,018 6,557,939 6,444,957 7,190,499 9,067,321 10,328,784 9,710,231 9,090,684
Other operating expenditures
Communications & utilities 2,192,384 2,023,057 2,190,695 2,444,564 2,115,821 3,348,001 3,780,633 3,867,295 3,905,223 4,024,401
Rents & leases 164,729 170,288 171,909 180,478 160,045 88,615 133,521 133,649 173,957 316,292
Insurance:
General liability & property 1,847,422 1,273,133 1,658,319 1,600,962 2,196,462 1,323,824 2,071,193 2,874,417 3,163,588 3,031,752
Workers compensation 2,019,722 1,627,423 2,145,046 2,422,843 2,611,827 2,037,611 2,181,044 2,844,913 1,605,230 774,732
Other operating expenditures 3,079,347 3,345,191 3,017,537 3,575,930 4,902,050 4,256,574 4,363,206 8,063,807 4,597,752 4,848,685
Total operating expenditures 9,303,604 8,439,092 9,183,506 10,224,777 11,986,205 11,054,625 12,529,597 17,784,081 13,445,749 12,995,862
Minor capital 92,853 203,098 90,346 - - 1,070 10,510 - - -
Total program expenditures 59,472,903 63,077,445 64,753,842 70,264,191 69,634,645 72,075,379 89,246,406 93,656,498 91,905,178 97,576,072
Reimbursed expenditures (4,008,992) (4,164,747) (4,264,633) (3,981,789) (4,277,664) (4,578,402) (4,717,442) (4,461,578) (5,511,628) (5,367,608)
Total general fund operating expenditures 55,463,911$ 58,912,698$ 60,489,209$ 66,282,402$ 65,356,981$ 67,496,977$ 84,528,964$ 89,194,920$ 86,393,550$ 92,208,464$
Schedule 6
City of San Luis Obispo, California
General Fund Operating Expenditures by Type
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
219
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Fiscal Year Homeowners Secured Roll Nonunitary Unsecured Total Direct Market Value of Market
Exemptions Gross Value Utilities Roll TOTAL Tax Rate (Note 1)Value
2015-16 41,518,400 7,166,010,320 4,883,115 317,266,793 7,488,160,228 1.00%7,488,160,228 100%
2016-17 42,109,709 7,615,940,988 5,269,573 316,965,453 7,938,176,014 1.00%7,702,282,828 100%
2017-18 42,702,377 7,844,131,236 4,369,188 331,183,030 8,179,683,454 1.00%8,179,683,454 100%
2018-19 43,352,906 8,688,541,007 4,231,993 359,588,899 9,052,361,899 1.00%9,052,361,899 100%
2019-20 43,335,854 9,156,811,458 3,990,145 360,372,662 9,521,174,265 1.00%9,521,174,265 100%
2020-21 43,445,185 9,872,892,242 4,194,503 371,969,399 10,249,056,144 1.00%10,249,056,144 100%
2021-22 43,644,354 10,449,275,830 4,154,621 369,153,263 10,822,583,714 1.00%10,822,583,714 100%
2022-23 44,681,189 11,352,719,604 3,840,493 414,262,072 11,770,822,169 1.00%11,770,822,169 100%
2023-24 45,448,900 11,765,407,582 3,768,692 414,282,418 12,183,458,692 1.00%12,183,458,692 100%
2024-25 46,290,669 12,510,668,163 3,681,976 495,255,596 13,009,605,735 1.00%13,009,605,735 100%
Notes:1)Valuations are established by the County Assessor of the County of San Luis Obispo, except for property owned by private utility companies,
which is valued by the State of California. The City assumes that Market Values are equal to total Assessed Valuation.
2)For comparison purposes, gross assessed valuations include homeowners' exemptions. Although these exemptions reduce property tax
collections, the revenue loss is reimbursed by the State of California. As such, gross assessed valuation is the revenue base used in
establishing property tax-related revenues.
Source: HdL, Coren & Cone ACFR 2024-25 report - 2024/25 Roll Summary table.
Gross Assessed Valuation (Notes 1 and 2)
Schedule 7
City of San Luis Obispo, California
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
-
2,000,000,000
4,000,000,000
6,000,000,000
8,000,000,000
10,000,000,000
12,000,000,000
14,000,000,000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Total Assessed Value
Secured Roll Gross Value Nonunitary Utilities Unsecured Rolls
220
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2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Proposition 13 maximum tax rate (Note 2)1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
Voter approved indebtedness:
State Water Bond 0.00374 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00363 0.00365
Cuesta Community College 2014 A & A1 0.01925 0.01925 0.01925 0.01925 0.01925 0.01925 0.01925 0.01925 0.01925 0.01750
San Luis Coastal Usd 2014 Series A & B 0.04900 0.04900 0.04900 0.04900 0.04900 0.03900 0.03900 0.03500 0.08400 0.08400
Total (Notes 1 and 3)1.07199 1.07225 1.07225 1.07225 1.07225 1.06225 1.06225 1.05825 1.10688 1.10515
Notes:
1. Property tax rates are levied per $100 of assessed valuation. The tax rate information provided is for Tax Rate Area 003-000, which is the
largest tax rate area in the City.
2. The passage of Proposition 13 on June 6, 1978 established a maximum County-wide levy for general revenue purposes of 1% of market value.
Voter-approved tax rates for the retirement of long-term liabilities were excluded from this limit.
3. It is not possible to identify tax rates for individual agencies however, the following is a summary of derived property tax
allocations within Tax Rate Area 003-000 for Fiscal Year 2022-23
Source: HdL, Coren & Cone ACFR 2024-25 report - Direct & Overlapping Property Tax Rates table
Base ERAF Net
Rate Allocation Apportionment
San Luis Coastal Unified School District 36.10 0.00 36.10
San Luis Obispo County - General Fund 21.86 (8.08)13.78
City of San Luis Obispo 14.83 *(3.48)11.35
San Luis Obispo Community College District 6.42 0.00 6.42
County School Services 3.81 0.00 3.81
City/County Library 1.98 (0.32)1.66
Port San Luis Harbor 1.63 (0.44)1.19
Other Agencies 1.38 (0.32)1.06
Education Revenue Augmentation Fund (ERAF)12.01 12.64 24.65
Total 100%0% 100%
*The County further adjusts the 18.4% base rate for revenue shifts to school districts as directed by the State as part of their cuts to local agencies,
resulting in an effective rate for the City of approximately 14.9%.
Source: HdL, Coren & Cone ACFR 2024-25 report - Property Tax Dollar Breakdown, San Luis Obispo County Assessor 2024-25 Post ERAF TRA Allocation Factors
Schedule 8
City of San Luis Obispo, California
Property Tax Rates
Last Ten Fiscal Years
221
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Number of Secured Percent of Total Number of Secured Percent of Total
Owner Parcels Assessed Value Rank City Assessed Value Parcels Assessed Value Rank City Assessed Value
CAP VIII - Mustang Village LLC 5 104,238,003 1 0.83%4 78,358,102 2 1.12%
Sierra Vista Hospital Inc.8 85,481,569 2 0.68%8 77,979,526 3 1.12%
Jamestown Premier San Luis Obispo Retail 9 82,595,523 3 0.66%9 105,432,430 1 1.51%
Charles Pasquini Jr Trust Et Al 8 77,074,813 4 0.62%9 61,066,537 4 0.88%
San Luis Obispo Promenade DE LLC 10 73,061,091 5 0.58%
Irish Hills Plaza East LLC 5 55,353,405 6 0.44%
Vintage at San Luis Obispo Alderwood 2 53,060,400 7 0.42%
Quaglino Properties LLC 27 47,314,188 8 0.38%
Costco Wholesale Corporation 2 42,697,281 9 0.34%1 34,284,730 7 0.49%
JCC Mission LLC Et Al 1 41,120,027 10 0.33%
SLO Promenade Limited Partnership 10 50,419,038 5 0.72%
Irish Hills Plaza West II LLC 6 46,963,546 6 0.67%
Marigold Center LLC 9 29,923,245 8 0.43%
Bre Atlas Property Owner LLC 1 27,900,000 9 0.40%
Target Corporation 1 26,413,114 10 0.38%
Total 77 661,996,300$ 5.28%58 538,740,268$ 7.72%
Source: HdL, Coren & Cone ACFR 2024-25 report - Top Ten Property Taxpayers table.
2015-16 data is from the City's ACFR.
Schedule 9
2024-25 2015-16
Current Year and Nine Years Ago
Principal Property Tax Payers
City of San Luis Obispo, California
94.72%
5.28%
Property Tax Payers for 2024-25
Remaining Property Tax Payers Top 10 Property Tax Payers
92.28%
7.72%
Property Tax Payers for 2015-16
Remaining Property Tax Payers Top 10 Property Tax Payers
222
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Total Secured Current Year Percent
Fiscal Tax Levy Current Year Percent Delinquencies Delinquent
Year (Notes 1 and 2)Collections Collected (Note 3)(Note 3)
2015-16 9,707,340 9,707,340 100%0 0
2016-17 10,250,205 10,250,205 100%0 0
2017-18 10,868,920 10,868,920 100%0 0
2018-19 11,648,706 11,648,706 100%0 0
2019-20 12,180,662 12,180,662 100%0 0
2020-21 12,957,910 12,957,910 100%0 0
2021-22 13,628,729 13,628,729 100%0 0
2022-23 14,458,958 14,458,958 100%0 0
2023-24 15,407,147 15,407,147 100%0 0
2024-25 16,316,087 16,316,087 100%0 0
Notes:
1. The secured property tax roll is composed of ad valorem taxes as well as special assessments, and is calculated by the San Luis Obispo County Auditor-Controller.
Auditor-Controller. The San Luis Obispo County Tax Collector is responsible for all property tax roll collections within the City of San Luis Obispo. The amount
reported is before the SB2557 County administrative fees of approximately 3% of total property tax revenues.
2. The secured levy does not include supplemental assessments, unsecured tax revenues, or prior year adjustments, which can be significant. For example, in 2012-13
revenue to the City from supplemental assessments was $99,500 and $215,100 from unsecured. A one-time refund was received from the County Auditor-
Controller, refunding $632,800 representing prior overcharges for the SB2557 fee. Property tax revenues totaled $8,740,762.
3. The City has elected the Teeter Plan method of property tax collection, whereby the County remits 100% of taxes levied and pursues collection and retains any
delinquent taxes and related penalties and interest.
Source: San Luis Obispo County Auditor-Controller - 2024-25 Property Tax Estimates and Delinquencies Report
Schedule 10
City of San Luis Obispo, California
Secured Property Tax Roll Levies and Collections
Last Ten Fiscal Years
223
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2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Sales
In Thousands of Dollars
Apparel stores 74,946 72,394 74,048 73,158 71,378 51,094 73,222 72,632 72,811 73,384
General merchandise stores 183,397 181,260 182,975 180,609 182,170 173,784 203,468 234,669 238,900 244,879
Food and drug stores 43,798 43,486 46,085 47,337 49,158 50,038 49,500 52,204 54,559 55,552
Eating & drinking palces 171,620 177,675 185,156 187,369 193,107 141,413 200,076 226,944 238,243 239,039
Building materials & farm tools 140,259 142,498 160,259 165,839 162,778 165,955 182,925 194,063 188,003 176,409
Auto dealers & supplies 305,248 307,369 320,794 322,503 322,235 324,523 402,683 392,900 403,769 441,636
Service stations 89,447 77,840 85,157 95,860 96,870 71,638 100,914 125,345 115,065 108,958
Other retail stores 276,311 281,280 279,946 280,799 261,681 245,366 301,138 306,870 291,574 285,120
Total retail stores 1,285,026 1,283,802 1,334,420 1,353,474 1,339,377 1,223,811 1,513,926 1,605,627 1,602,924 1,624,977
All other outlets 359,995 364,901 379,808 415,830 430,535 489,112 576,301 652,869 647,968 658,839
Total 1,645,021 1,648,703 1,714,228 1,769,304 1,769,912 1,712,923 2,090,227 2,258,496 2,250,892 2,283,816
Source: HdL, Coren & Cone ACFR 2024-25 report - Taxable Sales by Category table
Schedule 11
City of San Luis Obispo, California
Schedule of Taxable Sales and Permits by Category
Last Ten Calendar Years
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Taxable Sales by Category
(In Thousands of Dollars)
Apparel stores General merchandise stores Food and drug stores
Eating & drinking palces Building materials & farm tools Auto dealers & supplies
Service stations Other retail stores All other outlets
224
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Effective End State Local City LRM Combined
Date Date Jurisdiction Transportation Fund Rate (Note 4 & 6)Rate
8/1/1933 6/30/1935 (Note 2)2.50%2.50%
7/1/1935 6/30/1943 3.00%3.00%
7/1/1943 6/30/1949 2.50%2.50%
7/1/1949 12/31/1961 3.00%3.00%
1/1/1962 7/31/1967 3.00%1.00%4.00%
8/1/1967 6/30/1972 4.00%1.00%5.00%
7/1/1972 6/30/1973 3.75%0.25% 1.00%5.00%
7/1/1973 9/30/1973 4.75%0.25% 1.00%6.00%
10/1/1973 3/31/1974 3.75%0.25% 1.00%5.00%
4/1/1974 11/30/1989 4.75%0.25% 1.00%6.00%
12/1/1989 12/31/1990 5.00%0.25% 1.00%6.25%
1/1/1991 7/14/1991 4.75%0.25% 1.00%6.00%
7/15/1991 12/31/2000 6.00%0.25% 1.00%7.25%
1/1/2001 12/31/2001 5.75%0.25% 1.00%7.00%
1/1/2002 6/30/2004 6.00%0.25% 1.00%7.25%
7/1/2004 3/31/2007 (Note 3)6.25%0.25% 0.75%(Note 3)7.25%
4/1/2007 3/31/2009 6.25%0.25% 0.75%0.50% 7.75%
4/1/2009 6/30/2011 7.25%0.25% 0.75%0.50% 8.75%
7/1/2011 12/31/2012 6.25%0.25% 0.75%0.50% 7.75%
1/1/2013 12/31/2016 6.50%0.25% 0.75%(Note 5)0.50% 8.00%
1/1/2017 3/31/2021 6.00%0.25% 1.00%0.50% 7.75%
4/1/2021 current 6.00%0.25% 1.00%(Note 6)1.50% 8.75%
Notes:
1. The Bradley-Burns Uniform Local Sales and Use Tax Law was enacted in 1955. The law authorizes cities and counties to impose a sales and use tax.
Effective January 1, 1962, all cities and counties have adopted ordinances for the State Board of Equalization to collect the local tax.
2. Sales tax only. The use tax was enacted effective July 1, 1935.
3. In March 2004, a State ballot measure was passed issuing deficit reduction bonds for State purposes. Funding was provided effective July 1, 2004 by
repealing 25% of the local 1% sales tax and then adopting a new 1/4-cent sales tax dedicated to repayment of the deficit reduction bonds. Cities and
counties would then be "made whole" by the State from increased property tax allocations via reduced contributions to ERAF. This "triple flip" is
theoretically revenue-neutral, and as such, the effective rate for revenue purposes remains at 1%.
4. In November 2006, voters in San Luis Obispo approved a local revenue measure (LRM) increasing the City tax rate by 1/2%, which became effective
April 1, 2007. The sales tax measure has a sunset provision of 8 years. The local Sales Tax was extended as Measure G in the November 2014
election for 8 years.
5. Proposition 30, The Schools and Local Public Safety Protection Act of 2012 , was approved by California voters in November 2012 to temporarily
increase the sales and use tax by 0.25%. The sales and use tax imposed by Proposition 30 expired December 31, 2016.
6. In November 2020, voters in San Luis Obispo approved a local revenue measure (LRM) increasing the local sales tax to 1.5% with an effective date
of April 1, 2021. The local sales tax measure has no sunset provision and replaced the 2014 Measure G.
Source: State Board of Equalization, State of California
Schedule 12
City of San Luis Obispo, California
Historical Sales and Use Tax Rates
225
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No. of No. of
Certificates Percent Certificates Percent
Construction 1,046 11.8% 1,070 11.8%
Manufacturing 128 1.4%133 1.5%
Transportation/Utilities 41 0.5%76 0.8%
Wholesale 123 1.4%124 1.4%
Retail 1,208 13.7% 1,307 14.5%
Professional 1,185 13.4% 1,148 12.7%
Residential Rental 2,714 30.7% 2,699 29.8%
Commercial Rental 288 3.3%292 3.2%
Services 2,111 23.9% 2,195 24.3%
Total business certificates issued 8,844 100%9,044 100%
Home occupations 694 7.8%712 7.9%
Located outside City limits 2,065 23.3% 2,257 25.0%
Located in Downtown Business Improvement District 552 6.2%572 6.3%
Source: City of San Luis Obispo Finance Department - Revenue Division
Fiscal Years Ended June 30, 2025 and 2024
Schedule of Business Tax Certificates Issued
City of San Luis Obispo, California
Schedule 13
20242025
11.8%
1.4%
0.5%1.4%
13.7%
13.4%
30.7%
3.3%
23.9%
Business Tax Types for Fiscal Year End 2025
Construction
Manufacturing
Transportation/Utilities
Wholesale
Retail
Professional
Residential Rental
Commercial Rental
Services
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Percentage of
Fiscal Lease Purchase Lease SBITA Installment SBITA Total Primary Per Gross Assessed
Year Bonds Financing Loans Liability Liability Bonds Sales Agreement Loans Liability Government Capita Value
2015-16 27,762,893 1,374,773 679,314 - - 25,323,405 7,932,327 17,647,622 - 80,720,334 1,741 1.16%
2016-17 26,328,540 1,898,652 591,647 - - 24,072,708 7,366,468 16,709,160 - 76,967,175 1,660 0.99%
2017-18 23,484,450 1,599,769 503,101 - - 21,815,204 6,783,114 15,743,808 - 69,929,446 1,497 0.88%
2018-19 22,171,441 1,413,937 413,667 - - 19,542,657 6,181,902 14,750,783 - 64,474,387 1,385 0.79%
2019-20 21,084,777 1,381,486 323,380 - - 18,185,089 5,562,462 26,133,837 - 72,671,031 1,583 0.76%
2020-21 20,038,779 734,673 232,111 - - 16,772,171 4,919,407 56,229,546 - 98,926,687 2,102 0.97%
2021-22 18,954,856 390,420 139,961 125,003 172,229 15,307,178 4,257,343 99,918,648 - 139,265,638 2,922 1.29%
2022-23 17,829,558 36,245 46,887 570,922 407,465 13,795,824 3,575,863 120,213,508 50,596 156,526,868 3,275 1.33%
2023-24 16,560,495 - - 429,171 321,349 60,137,512 2,869,551 138,064,103 25,637 218,407,818 4,486 1.79%
2024-25 15,366,181 - - 276,446 74,712 58,416,528 2,327,976 152,880,499 - 229,342,342 4,630 1.76%
Source: City of San Luis Obispo Finance Department
Schedule 14
City of San Luis Obispo, California
Per Capita Outstanding Debt By Type
Last Ten Fiscal Years
Governmental Activities Business-Type Activities
$-
$40,000,000
$80,000,000
$120,000,000
$160,000,000
$200,000,000
$240,000,000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Outstanding Debt Per Capita
Governmental Activities Business-Type Activities
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Service Ratio of Net
Total Taxable General Payable from Net Bonded Debt Net Bonded
Assessed Bonded Enterprise Bonded to Assessed Debt per
Fiscal Year Population Value Debt Revenues Debt Value Capita
2015-16 46,117 7,488,160,228 0 0 0 0.0%0
2016-17 46,724 7,938,176,014 0 0 0 0.0%0
2017-18 46,548 8,179,683,454 0 0 0 0.0%0
2018-19 46,802 9,052,361,899 0 0 0 0.0%0
2019-20 45,920 9,521,174,265 0 0 0 0.0%0
2020-21 47,063 10,249,056,144 0 0 0 0.0%0
2021-22 47,653 10,822,583,714 0 0 0 0.0%0
2022-23 47,788 11,770,822,169 0 0 0 0.0%0
2023-24 48,684 12,183,458,692 0 0 0 0.0%0
2024-25 49,534 13,009,605,735 0 0 0 0.0%0
Notes:
1. Valuations are established by the County Assessor of the County of San Luis Obispo, except for property owned by private utility companies,
which is valued by the State of California.
2. See Schedule of Demographic and Economic Statistics for population data.
3. Personal income information is not available. Net Bonded Debt is expressed as a ratio to Assessed Value.
Source: HdL, Coren & Cone ACFR 2024-25 report - Demographic and Economic Statistics table
Demographics changed from FY to Calendar Year
Schedule 15
City of San Luis Obispo, California
Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capital
Last Ten Fiscal Years
228
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Amount Applicable
Percent Applicable to the City of
to the City of San Luis Obispo
San Luis Obispo as of June 30, 2025
Overlapping tax and assessment debt:
San Luis Obispo Community College District 192,585,000$ 17.05%33,373,055$
San Luis Coastal Unified School District 310,676,000 53.28%165,531,280
City of San Luis Obispo Community Facilities District No. 2019-1 19,380,000 100.00%19,380,000
California Statewide Communities Development Authority
Community Facilities District No. 2024-07 2,835,000 100.00%2,835,000
California Statewide Communities Development Authority
Assessment District No. 2024-1 1,205,000 100.00%1,205,000
Total overlapping tax and assessment debt 222,324,335
Overlapping General Fund long-term debt:
San Luis Obispo County General Fund Obligations 77,618,932$ 17.40%13,501,813$
San Luis Obispo County Pension Obligations 19,244,051 17.40%3,347,503
16,849,316
Direct long-term debt:
City of San Luis Obispo 2001 IBank Loan - Parking 100.00%2,537,059$
City of San Luis Obispo 2009 IBank Loan - Sewer 100.00%5,627,721
City of San Luis Obispo 2014 LOVR Lease Revenue Bonds 100.00%5,885,000
City of San Luis Obispo 2018 Clean Water State Revolving - Sewer 100.00%134,230,838
City of San Luis Obispo 2018 Lease Revenue Bonds 100.00%10,495,000
City of San Luis Obispo 2018 Water Revenue Refunding Bonds 100.00%6,845,000
City of San Luis Obispo 2020 IBank Loan - Water 100.00%10,484,882
City of San Luis Obispo 2023 Lease Revenue Refunding Bonds 100.00%44,860,000
City of San Luis Obispo Lease Liability 100.00%276,446
City of San Luis Obispo Subscription based IT agreements liability 100.00%74,712
City of San Luis Obispo Unamortized bond premium Governmental Activities 100.00%966,956
City of San Luis Obispo Unamortized bond premium Business-Type Activities 100.00%4,730,753
Less self-supporting issues:
City of San Luis Obispo obligations supported by enterprise revenues (211,297,027)
Total direct debt 15,717,339
Total direct and overlapping long-term debt 254,890,990$
Ratio of long-term debt to assessed valuation and population
Gross Assessed Valuation 13,009,605,735$
Population 49,534
Percent of Gross Per Capita
Amount Assessed Valuation Long-Term Debt
Direct and Overlapping Debt:
Gross 466,188,017$ 3.6%$9,411.48
Net 254,890,990 2.0%5,146
Direct Debt:
Gross 227,014,366$ 1.7%$4,583.00
Net 15,717,339 0.1%317
Source: California Municipal Statistics, Inc., HdL, Coren & Cone ACFR 2024-25 report - Demographic and Economic Statistics table
Schedule 16
City of San Luis Obispo, California
Direct and Overlapping Long-Term Debt
Fiscal Year Ended June 30, 2025
The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by
determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
229
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2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Legal debt limit 272,833$ 288,836$ 306,738$ 339,464$ 357,044$ 384,339$ 405,847$ 441,406$ 456,880$ 487,860$
Total debt applicable to limit
Legal debt margin 272,833 288,836 306,738 339,464 357,044 384,339 405,847 441,406 456,880 487,860
Total debt applicable to the limit
as a percentage of debt limit 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Legal Debt Margin Calculation for Fiscal Year 2023-24
Gross Assessed Valuation 13,009,605,735$
Legal Debt Limit - 3.75% of Gross Assessed Valuation 487,860,215$
Long-term Debt:
Revenue Bonds Secured by Capital Leases 61,240,000$
Water Revenue Bonds 6,845,000
68,085,000
Less deductions allowed by law:
Revenue Bonds Secured by Capital Leases 61,240,000
Water Revenue Bonds 6,845,000
68,085,000
Total debt applicable to computed limit $0
Legal debt margin 487,860,215$
Note: The California Government Code provides for a legal debt limit of 15% of gross assessed valuation based on 25% of market value, or a legal debt limit of 3.75%.
The City's debt management policy, however, sets a more restrictive debt limit of 2% of assessed valuation.
Schedule 17
City of San Luis Obispo, California
Computation of Legal Debt Margin
Last Ten Fiscal Years
(Amounts Expressed in Thousands)
230
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Less Operating &Net Revenue Coverage
Fiscal Operating Development Other Maintenance Available for With
Year Revenues Impact Fees Revenues Expenses Bond Debt Service Principal Interest Total Coverage Impact Fees
2015-16 20,137,422 (1,543,268)53,731 (14,056,603)4,591,282 1,245,486 881,318 2,126,804 216% 288%
2016-17 19,873,517 (1,266,674)410,484 (14,754,114)4,263,213 1,290,748 837,657 2,128,405 200% 260%
2017-18 21,997,054 (2,131,345)325,268 (16,250,751)3,940,226 1,336,267 792,337 2,128,604 185% 285%
2018-19 23,992,758 (3,745,666)948,324 (15,995,459)5,199,957 2,281,739 858,471 3,140,210 166% 285%
2019-20 25,666,777 (3,723,460)663,838 (19,485,472)3,121,683 1,367,920 637,348 2,005,268 156% 341%
2020-21 28,340,076 (4,744,361)65,386 (17,765,625)5,895,476 960,390 527,682 1,488,072 396% 715%
2021-22 29,671,678 (5,160,020)222,451 (17,296,355)7,437,754 1,001,055 489,266 1,490,321 499% 845%
2022-23 27,472,542 (3,616,307)248,134 (18,530,525)5,573,844 1,036,530 449,224 1,485,754 375% 619%
2023-24 31,141,045 (4,686,719)253,917 (21,703,368)5,004,875 512,290 403,063 915,353 547% 1059%
2024-25 34,129,107 (4,843,919)227,320 (24,116,719)5,395,789 537,955 377,622 915,577 589% 1118%
Notes:
1. Operating revenues exclude depreciation and amortization.
2. Net revenues available for debt service exclude development impact fees.
3. The City refinanced its 2005 Refunding Lease Revenue Bonds, 2006 Lease Revenue Bonds, and 2009 Lease Revenue Bonds into the 2018 Lease Revenue Bonds.
4. Starting in 2021, principal and interest amounts do not include 2004 state revolving loan as it was retired.
5. The City refinanced its 2012 Lease Revenue Bonds into the 2023 Lease Revenue Bonds which was allocated to the Parking Fund.
6. Current year debt service requirements include 2018 Lease Refunding Revenue Bonds and 2018 Water Refunding Revenue Bonds.
Source: City of San Luis Obispo Utilities Department
FY 2024-25 Debt Schedule for 2025-27 Financial Plan
Schedule 18
City of San Luis Obispo, California
Revenue Bond Coverage - Water Fund
Last Ten Fiscal Years
Bonded Debt Service Requirements
231
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Net Revenue
Fiscal Gross Operating Available for
Year Revenues Expenses Bond Debt Service Principal Interest Total Coverage
2015-16 4,606,249 (2,757,299) 1,848,950 466,185 501,631 967,816 191%
2016-17 4,659,562 (2,671,028) 1,988,534 481,981 487,407 969,388 205%
2017-18 6,651,038 (2,998,555) 3,652,483 498,058 469,314 967,372 378%
2018-19 5,443,038 (3,100,113) 2,342,925 381,250 226,931 608,181 385%
2019-20 3,840,059 (3,080,588) 759,471 237,900 201,866 439,766 173%
2020-21 2,768,419 (3,093,183) (324,764) 247,050 192,350 439,400 (74%)
2021-22 4,890,317 (3,552,603) 1,337,714 257,725 182,468 440,193 304%
2022-23 6,022,372 (4,148,805) 1,873,567 265,350 172,159 437,509 428%
2023-24 9,663,683 (5,937,228) 3,726,455 277,550 161,545 439,095 849%
2024-25 8,307,559 (5,641,890) 2,665,669 928,225 1,246,943 2,175,168 123%
Notes:
1. Operating expenses exclude depreciation.
2. In 1994 the Capital Improvement Lease Revenue Bonds were refinanced resulting in new debt of $11,780,000, of which $7,421,400
is designated for the Parking Fund. In 2004 the 1994 bonds were refinanced with a maturity date of 2014. In 2006 Lease Revenue
Bonds were issued resulting in new debt of $16,160,000, of which $8,726,400 is allocated to the Parking Fund.
4. The City refinanced its 2012 Refunding Revenue Bond into the 2023 Lease Revenue Bond. Resulting in new debt of $45,780,000, of
which $1,920,000 is allocated to the Parking Fund.
Source: City of San Luis Obispo Finance Department.
FY 2024-25 Debt Schedule for 2025-27 Financial Plan
Schedule 19
City of San Luis Obispo, California
Revenue Bond Coverage - Parking Fund
Last Ten Fiscal Years
3. The City refinanced its 2005 Refunding Lease Revenue Bonds, 2006 Lease Revenue Bonds, and 2009 Lease Revenue Bonds into the
2018 Lease Revenue Bonds. Resulting in new debt of $16,905,000, of which $5,156,025 is allocated to the Parking Fund.
Bonded Debt Service Requirements
232
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Personal Public Elementary and Cuesta College
Calendar Income Median Secondary School Full Time Enrollment Unemployment
Year Population (1)in 000's (1)Age (1)Enrollment (2)SLO Campus (3)Rate (1)
2015 46,117 1,211 25.0 7,638 5,401 4.9%
2016 46,724 1,270 25.4 7,718 4,757 4.5%
2017 46,548 1,300 26.1 7,755 4,987 3.2%
2018 46,802 1,398 26.5 7,813 4,515 2.5%
2019 45,920 1,505 26.2 7,801 4,687 2.4%
2020 47,063 1,625 26.7 7,491 1,114 7.7%
2021 47,653 1,717 26.7 7,537 2,173 5.0%
2022 47,788 1,865 26.0 7,717 3,011 2.6%
2023 48,684 1,984 25.2 7,741 3,240 3.1%
2024 49,534 2,183 26.2 7,800 3,298 3.5%
Sources:
1. HdL, Coren & Cone ACFR 2024-25 report - Demographic and Economic Statistics table
3. https://www.cuesta.edu/about/depts/research/Enrollment_Management.html
Post Term FTES Dashboard, 320 Year Reported by academic year start date
Schedule 20
City of San Luis Obispo, California
Demographic and Economic Statistics
For The Last Ten Calendar Years
2. CA Dept of Education DataQuest: Enrollment Reports for San Luis Coastal Unified, by Academic Year start date;
https://www.cde.ca.gov/sdprofile/details.aspx?cds=40688090000000
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Percentage Percentage
Number of Total City Number of Total City
Employer Employees Rank Employment Employees Rank Employment
*Cal Poly State University 3,177 11.85%3,055 1 10.70%
*County of San Luis Obispo 2,956 11.03%2,800 2 8.80%
Cal Poly Corporation (Foundation)2,787 10.40%1,400 5 4.90%
Pacific Gas & Electric Company 1,824 6.81%1,900 3 6.70%
*California Men's Colony 1,350 5.04%1,540 4 5.40%
San Luis Coastal Unified School District 1,070 3.99%902 6 3.20%
Sierra Vista Regional Medical Center 779 2.91%700 7
*Cuesta Community College 773 2.88%440 10 1.50%
French Hospital Medical Center 688 2.57%
City of San Luis Obispo 654 2.44%
Mindbody 650 8 2.30%
California Department of Transportation 544 9 1.90%
Total 16,058 59.92%13,931 45.40%
San Luis Obispo City - Labor Force at 6/30/2025 26,800
*Although not directly in City limits, these are still major employers within the City
Source for the 2024-25 employers information is the Major Employers in San Luis Obispo County from State of California
Employment Development Department's website;
https://labormarketinfo.edd.ca.gov/majorer/countymajorer.asp?CountyCode=000079.
2015-16 data is from the City's ACFR.
2015-162024-25
Schedule 21
City of San Luis Obispo, California
Principal Employers
Current Year and Nine Years Ago
59.92%
40.08%
City Wide Employers for 2024-25
Top 10 Employers All Other Employers
11.85%
11.03%
10.40%
6.81%
5.04%
3.99%
2.91%
2.88%
2.57%
2.44%
Top Ten Employers for 2024-25
*Cal Poly State University *County of San Luis Obispo
Cal Poly Corporation (Foundation)Pacific Gas & Electric Company
*California Men's Colony San Luis Coastal Unified School District
Sierra Vista Regional Medical Center *Cuesta Community College
French Hospital Medical Center City of San Luis Obispo
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Function 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Public Safety
Police
Sworn 61.0 61.0 61.5 61.5 64.5 65.0 64.0 64.0 67.0 70.0
Non-sworn 25.5 25.5 24.0 24.0 24.0 25.5 27.0 27.0 28.0 27.0
Fire
Sworn 50.0 47.0 47.0 47.0 47.0 47.0 47.0 47.0 48.0 49.0
Non-sworn 4.0 10.0 10.0 10.0 10.0 9.5 10.5 10.5 12.5 12.0
Public Utilities 67.1 69.1 69.1 69.1 69.1 69.9 70.6 70.6 80.1 80.0
Transportation 36.8 36.8 36.8 36.8 36.8 37.1 43.3 44.3 40.2 42.7
Culture and recreation 35.0 35.0 35.0 35.0 34.0 33.0 43.0 43.0 47.0 48.0
Community Development 51.0 51.0 47.4 47.9 47.5 47.5 54.5 54.5 58.0 61.3
General Government 57.0 61.0 61.0 62.3 64.8 72.3 87.8 87.8 92.7 99.5
Total 387.4 396.4 391.8 393.6 397.7 406.8 447.7 448.7 473.5 489.5
Ratio of Sworn Police Personnel per 1,000 Population:* 1.33 1.31 1.44 1.31 1.34 1.44 1.34 1.34 1.38 1.44
Ratio of Sworn Fire Personnel per 1,000 Population:*1.06 1.01 1.01 1.00 1.02 1.01 0.99 0.98 0.99 1.01
*Population numbers may not include Cal Poly students or faculty that live on campus and are served by City personnel.
Note: See Schedule of Demographic and Economic Statistics for population data.
Source: City of San Luis Obispo Finance Department
Schedule 22
City of San Luis Obispo, California
Regular Authorized Positions
Last Ten Fiscal Years
235
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2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Function/Program:
Police:
Calls for police/fire service 38,300 39,620 39,103 37,825 37,335 40,907 44,183 43,104 41,683 35,550
Incident numbers issued 32,542 33,360 32,730 31,471 31,472 35,695 38,290 36,474 35,084 35,952
Police reports written 8,852 8,675 7,735 6,999 6,297 5,852 6,637 6,137 6,708 6,304
Violations cited 7,673 7,649 7,524 5,874 4,020 3,445 3,735 4,851 5,126 8,455
Citations issued 7,038 7,030 6,752 5,287 3,660 3,056 3,349 4,531 4,719 7,907
Collision reports 587 608 609 623 481 419 483 487 533 554
Violent crimes:*173 177 178 191 187 201 225 266 245 210
Willful homicide*- - - 1 - 1 2 - - -
Forcible rape*29 38 44 55 39 37 25 37 31 30
Robbery*13 21 23 33 34 24 33 37 44 41
Aggravated assault*131 118 111 103 114 139 165 192 170 139
Property crimes:*637 731 644 728 728 793 885 985 667 668
Burglary**225 251 172 244 277 284 272 254 183 163
Motor vehicle theft*87 95 94 74 74 117 174 119 90 77
Larceny-theft:*1,335 1,730 1,516 1,493 1,387 1,219 1,398 1,372 1,010 1,126
Over $400*325 385 378 410 377 392 439 612 394 428
$400 and under*1,010 1,345 1,138 1,083 1,010 827 959 760 616 698
Fire:
Medical responses (Note 1)3,540 4,538 4,248 3,715 3,884 3,544 3,857 4,675 4,482 4,494
Fire suppression responses (Note 1)151 143 163 122 127 133 136 146 198 173
Hazardous materials responses (Note 1 and 3)22 21 17 25 29 98 133 153 108 72
Other responses (Note 1)2,158 1,799 1,785 2,100 2,140 1,745 2,097 2,417 2,331 2,575
Total service responses 5,871 6,501 6,213 5,962 6,180 5,520 6,223 7,391 7,119 7,314
Fire Suppression Training Hours 6,714 6,348 7,719 8,410 10,835 11,033 16,015 20,814 19,531 19,620
Fire and life-safety inspections (Note 4)2,516 3,756 3,738 2,002 3,128 1,871 2,092 1,790 1,809 1,546
Arson investigations (Note 2)44 8 12 24 21 13 5 17 5 173
Education activities (# of people)23,680 23,575 23,540 2,690 2,700 2,031 2,000 3,500 3,000 3,500
Public Utilities:
Water/Sewer customer accounts 15,167 15,188 15,505 15,555 15,672 15,958 16,256 16,703 17,015 17,133
Miles of sewerline 138 138 143 143 146 148 148 148 148 148
Miles of waterline 191 197 187 190 191 191 191 191 191 191
Water service line repairs and renewals (incl. recycled water)50 50 57 38 48 35 47 53 55 59
Sewer main stoppages - 11 4 10 8 11 14 12 1 1
Acre feet of water delivered - Nacimiento 3,574 3,817 3,753 3,484 1,470 2,449 4,460 2,096 - -
Acre feet of water delivered - Salinas 8 273 853 790 2,165 1,337 650 949 1,251 2,385
Acre feet of water delivered - Whale Rock 1,375 949 924 800 1,556 1,641 399 2,118 4,027 3,094
Continued
Schedule 23
City of San Luis Obispo, California
Operating Indicators and Capital Asset Statistics by Function
Last Ten Fiscal Years
236
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Schedule 23
City of San Luis Obispo, California
Operating Indicators and Capital Asset Statistics by Function
Last Ten Fiscal Years
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Function/Program:
Transportation:
Signals and lights:
Intersections with traffic signals 70 70 70 70 70 72 73 73 73 73
Traffic signal service requests 85 90 60 71 59 93 145 188 197 192
Streetlights operated & maintained 2,300 2,300 2,280 2,280 2,280 2,400 2,477 2,531 2,531 2,531
Streetlight service requests 45 50 13 8 11 33 47 61 69 94
Roadways:
Estimated miles of paved streets 133 133 134 134 134 134 135 143 143 143
Pavement condition index 71 71 70 73 70 73 70 76 73 74
Traffic collisions 531 482 501 431 441 259 361 388 384 466
Parking spaces provided (lot, garage & street)2,953 2,892 2,871 2,865 2,865 2,765 2,817 2,607 2,740 2,790
Parking citations written 24,213 23,348 21,647 24,415 21,240 17,748 39,254 44,439 26,427 32,286
Total transit passengers 1,209,708 1,131,716 945,288 981,995 715,380 179,456 528,000 515,007 575,255 660,056
Leisure, Cultural and Social Services (Note 5):
Open space acres maintained 3,510 3,510 3,775 4,040 4,040 4,040 4,040 4,040 4,040 4,040
Open space easement acres 3,200 3,200 3,200 3,500 3,500 3,500 3,500 3,500 3,500 3,500
Trail mileage 52 52 55 55 56 62 65 65 67 69
Total golf rounds played 30,572 28,196 35,670 24,662 16,428 24,222 17,991 16,392 20,858 24,494
Acres of park landscape maintained 157 157 500 570 530 106 106 107 115 116
City Maintained Trees 20,000 20,000 20,000 20,000 20,000 12,970 12,970 12,976 13,414 13,431
Children's services program enrollment totals 2,115 2,115 1,950 2,050 1,775 1,483 1,611 1,834 2,015 1,889
Triathlon:
participants, spectators, and volunteers
Annual Senior Center Membership 265 331 350 315 192 248 325 315 460
Facility permits processed 1,305 1,073 864 909 650 298 455 714 813 515
Annual aquatics attendance (total)68,403 96,687 97,701 87,690 55,202 51,235 62,224 66,621 75,418 76,905
Adult athletic teams registered 325 325 362 292 184 112 168 167 151 147
Youth athletic participants registered 1,300 1,150 1,115 1,140 618 611 1,083 1,180 1,368 2,322
Special event applications processed 77 101 88 95 40 2 37 45 72 57
Banner permits processed 87 56 45 81 78 48 26 80 70 41
Instructional class enrollments 1,151 1,724 1,439 1,118 595 626 1,212 900 755 1,356
Continued
Continued
237
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Schedule 23
City of San Luis Obispo, California
Operating Indicators and Capital Asset Statistics by Function
Last Ten Fiscal Years
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Function/Program:
Community Development (Note 6):
Housing characteristics:
Single family units (annually cumulative)11,230 11,306 11,413 11,510 11,693 11,853 12,072 12,169 12,336 12,427
2-4 units (annually cumulative)2,695 2,789 2,851 2,865 2,869 2,888 2,928 2,977 2,983 2,987
5 or more unit structures (annually cumulative)5,804 6,038 6,097 6,148 6,209 6,309 6,524 6,678 6,808 6,949
Mobile homes (annually cumulative)1,482 1,482 1,482 1,482 1,483 1,483 1,483 1,448 1,448 1,448
Total (annually cumulative)21,211 21,615 21,843 22,005 22,254 22,533 23,007 23,272 23,575 23,811
Building permits issued (Note 7):584 584 623 **202 556 721 662 605 678 687
Residential:
Single family residential incl. condos 97 62 125 159 171 253 202 157 203 126
Multi-family residential (includes second units & ADUs)5 13 18 19 17 33 16 24 8 1
Non-residential 13 14 10 15 12 2 3 11 10 6
Other permits:
Additions, alterations, demolitions 522 545 502 381 510 371 366 415 409 360
Other improvements (motel rooms)- - - 1 - - - 60 69 77
Total 637 634 655 575 710 659 587 667 699 570
Approximate value of building permits (in thousands)
Residential:
Single family residential 26,441$ 15,024$ 19,707$ 24,300$ 28,026$ 50,758$ 35,824$ 31,058$ 50,717$ 40,504$
Multi-family residential 13,500$ 8,172$ 17,249$ 21,162$ 33,606$ 10,545$ 56,085$ 20,985$ 71,330$ 900$
Non-residential 11,484$ 51,110$ 6,248$ 20,430$ 16,981$ 17,475$ 22,665$ 44,601$ 54,261$ 11,440$
Other permits:
Additions, alternations, demolitions (incl. swimming pools)30,230$ 27,711$ 14,928$ 34,596$ 60,812$ 78,780$ 29,207$ 58,766$ 34,062$ 45,211$
Total 81,655$ 102,017$ 58,132$ 100,488$ 139,425$ 157,558$ 143,783$ 155,410$ 210,370$ 27,469$
Building inspections conducted 7,195 10,745 9,974 7,537 8,670 7,959 10,470 10,423 9,948 7,523
Home occupation permits processed/applied for 163 144 112 112 131 133 140 101 117 95
Development permit applications received 253 236 215 215 338 269 282 244 109 140
Continued
Continued
238
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Schedule 23
City of San Luis Obispo, California
Operating Indicators and Capital Asset Statistics by Function
Last Ten Fiscal Years
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Function/Program:
General Government:
Business tax certificates issued:
Located outside City limits 2,018 1,699 1,872 1,948 1,839 1,913 1,932 2,057 2,257 1,896
Total certificates issued 7,597 8,118 8,230 8,205 7,675 7,732 8,371 8,531 9,044 8,796
Citywide recruitments (total)103 103 97 99 86 90 155 142 143 116
Fleet vehicles maintained
City-wide fleet & equipment assets 318 323 339 338 340 345 347 365 361 367
Replaces prior category
Telephone lines managed 1,005 998 907 971 963 1,071 1,101 1,101 1,099 1,099
Cell phones & modems supported 453 476 492 481 487 464 538 595 593 590
IT users supported 515 467 471 488 475 487 511 560 575 582
* Data from California Department of Justice based on calendar year
** Data only reflects the second half of the Fiscal Year
Notes: Some workload indicators are projections.
1. In Fiscal year 2010-11, numbers reported used observed code from Spillman rather than condition code.
2. Police Department Conducts Arson Investigations, Fire Department Conducts Cause and Origin Investigations. Reported number is Cause and Origin Investigations
5. Leisure, Culture and Social Services Indicators for FY 19-20 were lower compared to previous years due to COVID-19 program closures and capacity restrictions.
7. Excludes special permits such as plumbing, mechanical, electrical, signs, and grading as well as plan check permits.
Source: City of San Luis Obispo Departments
4. Beginning in 2020, the fire department began utilizing new mobile inspection software that uses a different inspection methodology counting the building rather than the
number of individual units within the building.
6. Beginning in 2016-17, building permit data reported in terms of calendar years, in alignment with State-mandated reporting requirements. Beginning in 2019-20 all
Community Development Indicators are reported by calendar year.
3. Beginning in 2020-21, the Fire Department includes all "Hazardous Condition" calls for service as categorized by the National Fire Incident Reporting System (NFIRS).
Previously only chemical or flammible liquid spills were captured under this function. Moving forward this function also includes electrical and biological hazards among
Continued
239
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Fiscal Historic Increase/Sales Increase/Deliveries Increase/
Year Connections (Decrease)Revenues (Decrease)In Acre Feet (Decrease)
2015-16 15,167 1.40%17,939,024 2.33% 4,957 (7%)
2016-17 15,357 1.25%18,196,937 1.44% 5,039 2%
2017-18 15,505 0.96%19,159,169 5.29% 5,530 10%
2018-19 15,555 0.32%19,577,182 2.18% 5,074 (8%)
2019-20 15,672 0.75%21,519,632 9.92% 5,191 2%
2020-21 15,958 1.82%22,757,325 5.75% 5,602 8%
2021-22 16,256 1.87%24,129,231 6.03% 5,732 2%
2022-23 16,703 2.75%23,297,077 -3.45%5,130 (11%)
2023-24 17,015 1.87%26,088,324 11.98%4,678 (9%)
2024-25 17,127 0.66%28,958,623 11.00%5,029 8%
Source: City of San Luis Obispo Utilities Department.
Schedule 24
City of San Luis Obispo, California
Water System
Statistical Data
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
Sales Revenues
-5.00%
0.00%
5.00%
10.00%
15.00%
2015-162016-172017-182018-192019-202020-212021-222022-232023-242024-25
Revenue Increase/Decrease
240
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As of Monthly Multi-family Single family
June 30 of Each Year Consumption Price per hcf*dwelling Commercial Landscape dwelling Multi-family dwelling Commercial
2016 Base Fee 9.98$ $8.32 min. charge per $8.32 min. charge per $8.32 min. charge per
Base Fee Drought Surcharge 0.74 dwelling unit dwelling unit dwelling unit
1-8 hcf 6.92 $9.17/unit volume charge** $9.17/unit volume charge**$9.17/unit volume charge
Drought Surcharge 1.10
9 + hcf 8.65
Drought Surcharge 1.37
2017 Base Fee 9.98$ $8.57 min. charge per $8.57 min. charge per $8.57 min. charge per
Base Fee Drought Surcharge 0.74 dwelling unit dwelling unit dwelling unit
1-8 hcf 6.92 $9.44/unit volume charge** $9.44/unit volume charge**$9.44/unit volume charge
Drought Surcharge 1.10
9 + hcf 8.65
Drought Surcharge 1.37
2018 Base Fee 12.33$ $8.57 min. charge per $8.57 min. charge per $8.57 min. charge per
1-8 hcf 7.27 dwelling unit dwelling unit dwelling unit
9 + hcf 9.08 $9.44/unit volume charge** $9.44/unit volume charge**$9.44/unit volume charge
2019***Residential SFR Base Fee 20.61$ Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined
1-5 hcf 5.90 by meter size****by meter size****by meter size****by meter size ****by meter size ****by meter size ****
6-12 hcf 6.87 $6.73/unit volume charge $8.17/unit volume charge $10.02/unit volume charge $7.85/unit volume charge** $7.85/unit volume charge** $7.85/unit volume charge**
13 +12.59
2020 Residential SFR Base Fee 21.74$ Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined
1-5 hcf 6.22 by meter size****by meter size****by meter size****by meter size ****by meter size ****by meter size ****
6-12 hcf 7.25 $7.10/unit volume charge $8.62/unit volume charge $10.57/unit volume charge $8.28/unit volume charge** $8.28/unit volume charge** $8.28/unit volume charge**
13 +13.28
2021*****Residential SFR Base Fee 22.52$ Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined
1-5 hcf 6.44 by meter size****by meter size****by meter size****by meter size ****by meter size ****by meter size ****
6-12 hcf 7.51 $7.36/unit volume charge $8.93/unit volume charge $10.95/unit volume charge $8.58/unit volume charge $8.58/unit volume charge $8.58/unit volume charge
13 +13.76
2022 Residential SFR Base Fee 23.31$ Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined
1-5 hcf 6.67 by meter size****by meter size****by meter size****by meter size ****by meter size ****by meter size ****
6-12 hcf 7.77 $7.62/unit volume charge $9.24/unit volume charge $11.33/unit volume charge $8.88/unit volume charge $8.88/unit volume charge $8.88/unit volume charge
2023 Residential SFR Base Fee 24.12 Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined
1-5 hcf 6.9 by meter size****by meter size****by meter size****by meter size ****by meter size ****by meter size ****
6-12 hcf 8.04 $7.88/unit volume charge $9.57/unit volume charge $11.73/unit volume charge $9.19/unit volume charge $9.19/unit volume charge $9.19/unit volume charge
13 +14.74
2024 Residential SFR Base Fee 28.15 Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined
1-5 hcf 7.94 by meter size****by meter size****by meter size****by meter size ****by meter size ****by meter size ****
6-12 hcf 9.16 $8.91/unit volume charge $9.43/unit volume charge $9.63/unit volume charge $9.44/unit volume charge $9.44/unit volume charge $9.88/unit volume charge
13 +15.79
Continued
Schedule 25
City of San Luis Obispo, California
Water and Sewer Rates
Last Ten Fiscal Years
Water Rates (Note 1)Sewer Rates (Monthly)
241
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Schedule 25
City of San Luis Obispo, California
Water and Sewer Rates
Last Ten Fiscal Years
As of Monthly Multi-family Single family
June 30 of Each Year Consumption Price per hcf*dwelling Commercial Landscape dwelling Multi-family dwelling Commercial
2025 Residential SFR Base Fee 30.25 Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined
1-5 hcf 8.54 by meter size****by meter size****by meter size****by meter size ****by meter size ****by meter size ****
6-12 hcf 9.84 $9.58/unit volume charge $10.14/unit volume charge $10.35/unit volume charge $9.82/unit volume charge** $9.82/unit volume charge**$10.27/unit volume charge
13 +16.97
*hcf = 100 cubic feet
** Total monthly volume charge capped based on average winter water consumption.
*** Beginning FY 18-19, different rate structures for SFR, Multi-Family, Commercial, and Landscape
****See table below
*****2020-21 rate increase deferred to February 1, 2021 due to COVID-19
Notes:
1. Rates are for services inside the City, outside the City rates are double.
2. Third tier applies only to single-family residential customers.
Source: City of San Luis Obispo Utilities Department
As of Water Sewer As of Water Sewer
June 30 of Each Year Base charge Base Charge June 30 of Each Year Base charge Base Charge
2022 3/4 inch or less 23.31$ 21.15$ 2023 3/4 inch or less $24.12 $21.89
1-inch 38.92 35.31 1-inch 40.28 36.55
1.5-inch 77.67 70.40 1.5-inch 80.38 72.86
2-inch 124.26 112.69 2-inch 128.61 116.63
3-inch 233.15 211.43 3-inch 241.31 218.83
4-inch 388.64 352.45 4-inch 402.24 364.78
6-inch 777.10 704.68 6-inch 804.3 729.34
8-inch 1,243.40 1,127.53 8-inch 1,286.92 1,166.99
10-inch - 1,620.99 10-inch - 1,677.72
2024 3/4 inch or less $28.15 $23.58 2025 3/4 inch or less $30.25 $24.52
1-inch 47 39.37 1-inch 50.5 40.95
1.5-inch 93.75 78.51 1.5-inch 100.8 81.65
2-inch 150.05 125.67 2-inch 161.3 130.7
3-inch 281.5 235.78 3-inch 302.6 245.21
4-inch 469.25 393.04 4-inch 504.45 408.76
6-inch 938.25 785.85 6-inch 1008.6 817.28
8-inch 1,501.25 1,257.40 8-inch 1,613.85 1,307.70
10-inch - 1,807.71 10-inch - 1,880.02
Meter Size
Base fee charges for Multi-Family, Non-Residential, Irrigation
Meter Size
Water Rates (Note 1)Sewer Rates (Monthly)
Continued
Base fee charges for Multi-Family, Non-Residential, Irrigation
242
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Service Water Use Percent of
Name Type (acre-feet)Total
City of San Luis Obispo Parks & Golf Landscape 57.85 1.2%
Silver City Mobile Home Park Mobile Homes 56.86 1.1%
ELL-CAP 97-Laguna Lake Mobile Homes 56.44 1.1%
Adventist Health System/West Care Facilities 42.86 0.9%
CAP VIII - Mustang Village LLC Apartments 40.34 0.8%
Creekside Community Mobile Homes 32.65 0.6%
Dignity Health #366 Care Facilities 31.43 0.6%
SLO Coastal Unified School 24.41 0.5%
Embassy Suites Hotel 22.02 0.4%
State of California Landscape 18.31 0.4%
All Other 92.4%
Total 383.16 100.00%
2023-24
Source: City of San Luis Obispo - Utilities Department
Schedule 26
City of San Luis Obispo, California
Water System - Ten Largest Water Users
Fiscal Year Ended June 30, 2025
1.2%
1.1%
1.1%
0.9%
0.8%
0.6%
0.6%
0.5%
0.4%0.4%
Ten Largest Water Users
City of San Luis Obispo Parks & Golf
Silver City Mobile Home Park
ELL-CAP 97-Laguna Lake
Adventist Health System/West
CAP VIII - Mustang Village LLC
Creekside Community
Dignity Health #366
SLO Coastal Unified
Embassy Suites
State of California
92.4%
7.6%
Ten Largest Water Users vs All
Other Water Users
All Other
Top 10
243
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Page 448 of 525
City of San Luis
Obispo
San Luis Obispo, California
Single Audit Reports
For the year ended June 30, 2025
Page 449 of 525
Page 450 of 525
City of San Luis Obispo
Single Audit Reports
For the year ended June 30, 2025
Table of Contents
Page
Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards .................................................................................. 1
Report on Compliance for Each Major Federal Program and on
Internal Control over Compliance in Accordance with the Uniform Guidance
And on the Schedule of Expenditures of Federal Awards .............................................................................................. 3
Schedule of Expenditures of Federal Awards ................................................................................................................. 7
Notes to the Schedule of Expenditures of Federal Awards .......................................................................................... 9
Schedule of Findings and Questioned Costs ................................................................................................................. 10
Page 451 of 525
This page intentionally left blank
Page 452 of 525
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND
OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards issued
by the Comptroller General of the United States, the financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the City of San
Luis Obispo, California (City), as of and for the year ended June 30, 2025, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements and have issued our
report thereon dated December 16 , 2025.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control
over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not
express an opinion on the effectiveness of the City’s internal control.
Our consideration of internal control over financial reporting was for the limited purpose described in the
preceding paragraph and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies and therefore, material weaknesses or significant
deficiencies may exist that have not been identified. However, as described in the accompanying schedule
of findings and responses, we identified certain deficiencies in internal control that we consider to be
material weaknesses and significant deficiencies.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control such that there is a reasonable possibility that a material misstatement of the entity’s
financial statements will not be prevented, or detected and corrected on a timely basis. We consider the
deficiencies described in the accompanying schedule of findings and questioned costs as item 2025-001 to
be material weaknesses.
Page 453 of 525
To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California
Page 2
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe
than a material weakness, yet important enough to merit attention by those charged with governance. We
consider the deficiencies described in the accompany schedule of findings and questioned costs as item
2025-002 to be significant deficiencies.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
financial statements. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance or other matters that are required to be reported under Government
Auditing Standards.
City of San Luis Obispo’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to
the findings identified in our engagement and described in the accompanying schedule of findings and
questioned costs. City’s response was not subjected to the auditing procedures applied in the audit of the
financial statements and, accordingly, we express no opinion on the response.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this
communication is not suitable for any other purpose.
Badawi & Associates, CPAs
Emeryville, California
December 16, 2025
2
Page 454 of 525
REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL
OVER COMPLIANCE IN ACCORDANCE WITH THE UNIFORM GUIDANCE AND ON THE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Independent Auditor’s Report
To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of San Luis Obispo, California’s (City) compliance with the types of compliance
requirements described in the OMB Compliance Supplement that could have a direct and material effect on
each of the City’s major federal programs for the year ended June 30, 2025. The City’s major federal
programs are identified in the summary of auditor’s results section of the accompanying schedule of
findings and questioned costs.
In our opinion, the City complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs for the
year ended June 30, 2025.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America (GAAS) ; the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States(Government Auditing Standards);
and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our
responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s
Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance
with relevant ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major
federal program. Our audit does not provide a legal determination of the City’s compliance with the
compliance requirements referred to above.
3
Page 455 of 525
To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California
Page 2
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of
laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s
federal programs.
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion
on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not
absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS,
Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when
it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control. Noncompliance with the compliance requirements referred to above is
considered material if there is a substantial likelihood that, individually or in the aggregate, it would
influence the judgment made by a reasonable user of the report on compliance about the City’s compliance
with the requirements of each major federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform
Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and
perform audit procedures responsive to those risks. Such procedures include examining, on a test basis,
evidence regarding the City’s compliance with the compliance requirements referred to above and
performing such other procedures as we considered necessary in the circumstances.
• Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to
design audit procedures that are appropriate in the circumstances and to test and report on internal control
over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an
opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is
expressed.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal
control over compliance that we identified during the audit.
4
Page 456 of 525
To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California
Page 3
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility
that material noncompliance with a type of compliance requirement of a federal program will not be
prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over
compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of
compliance requirement of a federal program that is less severe than a material weakness in internal control
over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the
Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all
deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies
in internal control over compliance. Given these limitations, during our audit we did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses, as defined
above. However, material weaknesses or significant deficiencies in internal control over compliance may
exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control
over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing
of internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City, as of and for the year ended June 30,
2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial
statements. We issued our report thereon dated December 16, 2025, which contained unmodified opinions
on those financial statements. Our audit was conducted for the purpose of forming opinions on the
financial statements that collectively comprise the basic financial statements. The accompanying schedule of
expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform
Guidance and is not a required part of the basic financial statements. Such information is the responsibility
of management and was derived from and relates directly to the underlying accounting and other records
used to prepare the basic financial statements. The information has been subjected to the auditing
procedures applied in the audit of the financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used
5
Page 457 of 525
To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California
Page 4
to prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material
respects in relation to the basic financial statements as a whole.
Badawi & Associates, CPAs
Emeryville, California
December 16, 2025
6
Page 458 of 525
City of San Luis Obispo
Schedule of Expenditures of Federal Awards
For the year ended June 30, 2025
Assistance
Listing Pass-through Program Subrecipient
Grantor Agency and Grant Title Number Number Expenditures Payments
U.S. Department of Housing and Urban Development
CDBG-Entitlement Grants Cluster
Passed Through the County of San Luis Obispo
Community Development Block Grants/Entitlement Grants 14.218 B-23-UC-06-0508 33,367$ -$
Total CDBG-Entitlement Grants Cluster 33,367 -
Total U.S. Department of Housing and Urban Development 33,367 -
U.S. Department of Justice
Direct awards:
Bulletproof Vest Partnership Program 16.607 7,227 -
Edward Byrne Memorial Justice Assistance Grant Program 16.738 14,730 -
Total U.S. Department of Justice 21,957 -
U.S. Department of Transportation
Direct award:
Federal Transit Formula Grants 20.507 9,106,262 -
Total Federal Transit Cluster 9,106,262 -
Passed Through the National Highway Traffic Association
State and Community Highway Safety 20.600 EM25009 130,331 -
Total Highway Safety Cluster 130,331 -
Passed Through the California department of transportation
Highway Planning and Construction 20.205 STPLR-7500(291)27,867 -
Total U.S. Department of Transportation 9,264,460 -
Department of the Treasury
Direct award:
Coronavirus State and Local Fiscal Recovery Funds 21.027 497,423 -
Total Department of the Treasury 497,423 -
U.S. Department of Energy
Direct award:
Energy Efficiency and Conservation Block Grant 81.128 76,790 -
Total U.S. Department of Energy 76,790 -
U.S. Department of Homeland Security
Direct awards:
Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 966,938 -
Assistance to Firefighters Grant 97.044 82,871 -
Passed Through the California 's Office of Emergency Management
Hazard Mitigation Grant - California Office of Emergency Management 97.039 FEMA-4344-DR-CA/
FEMA-4308-DR-CA
1,008,192 -
Total U.S. Department of Homeland Security 2,058,001 -
Total Expenditures of Federal Awards 11,951,998$ -$
See accompanying Notes to Schedule of Expenditures of Federal Awards.
7
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8
Page 460 of 525
City of San Luis Obispo
Notes to the Schedule of Expenditures of Federal Awards
For the year ended June 30, 2025
A. Reporting Entity
The City is a California charter city. It was incorporated on February 19, 1856 and chartered on May 1,
1876. It is organized in accordance with the Council-Mayor-City Manager form of government. With a
population of approximately 47,788, the City provides a broad range of municipal services, including
police and fire protection, parks and recreation, water and sewer utilities, street maintenance, public
transportation, parking, planning, and building and safety.
B. Basis of Accounting
Funds received under the various grant programs have been recorded within the special revenue funds
of the City. The City utilizes the modified accrual method of accounting for the special revenue funds.
Modified accrual accounting recognizes revenues when they become available and measurable and,
with a few exceptions, recognizes expenditures when liabilities are incurred. The accompanying
Schedule of Expenditures of Federal Awards (Schedule) has been prepared on the modified accrual
basis of accounting.
C. Relationship of Schedule of Expenditures of Federal Awards to Financial Statements
The accompanying Schedule presents the activity of all federal financial assistance programs of the City.
Federal financial assistance received directly from federal agencies as well as federal financial assistance
passed through the State of California is included in the Schedule.
The Schedule was prepared only from the accounts of various grant programs and, therefore, does not
present the financial position or results of operations of the City.
D. Pass-Through Entities’ Identifying Number
When federal awards were received from a pass-through entity, the Schedule shows, if available, the
identifying number assigned by the pass-through entity. When no identifying number is shown, the
City determined that no identifying number is assigned for the program or the City was unable to
obtain an identifying number from the pass-through entity.
E. Indirect Costs
The City did not elect to use the 10% de minimis indirect cost rate.
9
Page 461 of 525
City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2025
Section I - Summary of Auditor’s Results
Financial Statements
Types of auditor’s report issued: Unmodified
Internal control over financial reporting:
Material weakness(es) identified? Yes
Significant deficiency(ies) identified? Yes
Any noncompliance material to the financial statements noted? No
Federal Awards
Internal control over major programs:
Material weakness(es) identified? No
Significant deficiency(ies) identified? None noted
Type of auditor’s report issued on compliance for major programs Unmodified
Any audit findings disclosed that are required to be reported in
Accordance with section 200.516(a) No
Identification of major programs:
Assistance Listing Number(s)Name of Federal Program or Cluster Expenditures
20.507 Federal Transit Formula Grants 9,106,262$
97.036 Disaster Grants - Public Assistance (Presidentially Declared Disasters)966,938
Total Expenditures of All Major Federal Programs 10,073,200$
Total Expenditures of Federal Awards 11,951,998$
Percentage of Total Expenditures of Federal Awards 84.3%
Dollar threshold used to distinguish between type A and type B program $750,000
Auditee qualified as low-risk auditee under
section 200.520? No
10
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City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2025
Section II – Current Year Findings
A. Financial Statement Audit Finding
2025-001 Journal Entries Posting (Material Weakness)
Criteria: The access to post journal entries in the general ledger should be restricted. Journal entries
should be independently prepared, reviewed before being posted to the general ledger.
Condition: During the review of the City’s journal entry approval matrix and JE testing, we noted the
posting from the subledger to GL do not require approvals at the general ledger level nor at the
subledger level. Considering the number of employees who can post entries through subledger without
review and the fact that corrections to payroll, payable, revenue/receivables, cash management, capital
assets all can be posted through subledger and do not require approval, it increased the risk of
unauthorized or incorrect journals getting posted into general ledger.
Cause: The City didn’t have control in place to ensure all journal entries are properly reviewed before
posting.
Effect:. Journal entries recorded in the City’s accounting system may be inaccurate, unapproved, or
unsupported.
Recommendation: We recommend that the City limit the number of employees who can post journal
entries in the subledger and general ledger, and implement system control to ensure all journal entries
are reviewed before posting.
Management’s response:
City management agrees with the recommendation and continues working with the internal IT team
and consultants to explore modifications to the Oracle ERP system’s workflow to include approval for
system-generated adjusting entries, which are currently posted automatically.
Approval for manually generated journal entries was implemented in FY 2021-22 and remains in place.
While the City has approval controls for manual entries, a solution for system-generated adjustments is
still in progress. In the interim, the City has limited the number of employees that can post journal
entries and has developed reports that are generated each week to detect changes or adjustments to
payables transactions. These reports, along with procedural changes are intended to mitigate risk of
inaccurate, unapproved or unsupported entries posting to the general ledger until a system solution is
identified. This goal is considered partially implemented by the City.
11
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City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2025
Section II – Current Year Findings, continued
A. Financial Statement Audit Finding, continued
2025-002 Payroll Module Implementation (Significant Deficiency)
Criteria: An effectively implemented payroll system should process the payroll accurately, and an
effective internal control system over payroll requires timely and accurate payroll processing.
Condition: During the performance of the audit, we noted that –
• The Oracle payroll module has overtime configuration implemented incorrectly, and the City has to
manually track the payroll in a spreadsheet and correct the error as it occurs since the
implementation.
• The configuration of payroll journal entries posting was implemented incorrectly which caused the
variance between the bank record and the City’s general ledger.
Cause: The Oracle payroll module has not been implemented correctly.
Effect: Errors and fraud can go undetected in payroll processing with a large volume of manual
corrections needed.
Recommendation: We recommend the City to work with the third-party vendor to correct the
implementation of payroll module.
Management’s Response:
City Management agrees with the finding and has engaged a consultant to reconfigure the payroll
module to correct overtime calculations. Significant progress has been made in identifying and testing
solutions as of June 30, 2025, with full implementation occurring in October 2025. Manual intervention
in the calculation of overtime is no longer required as of the implementation.
In the interim, the City continued to monitor payroll, manually correcting overtime issues each pay
period. To enhance accuracy, staff has delivered comprehensive training on time card entry and created
Oracle Guided Learnings (OGLs) for real-time payroll module training. Additionally, the City has
implemented the mandatory "Redwood" Oracle user interface upgrade, improving usability and time-
tracking accuracy.
Configuration of the payroll journal entries was a one-time occurrence that has since been corrected.
12
Page 464 of 525
City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2025
Section II – Current Year Findings, continued
B. Federal Award Program Audit Finding
No findings or questioned costs were noted in the current year.
13
Page 465 of 525
City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2025
Section III – Prior Year Findings
A. Financial Statement Audit Finding
2024-001 Journal Entries Posting (Material Weakness)
Criteria: The access to post journal entries in the general ledger should be restricted. Journal entries
should be independently prepared, reviewed before being posted to the general ledger.
Condition: During the review of the City’s journal entry approval matrix and JE testing, we noted the
posting from the subledger to GL do not require approvals at the general ledger level nor at the
subledger level. Considering the number of employees who can post entries through subledger without
review and the fact that corrections to payroll, payable, revenue/receivables, cash management, capital
assets all can be posted through subledger and do not require approval, it increased the risk of
unauthorized or incorrect journals getting posted into general ledger.
Cause: The City didn’t have control in place to ensure all journal entries are properly reviewed before
posting.
Effect:. Journal entries recorded in the City’s accounting system may be inaccurate, unapproved, or
unsupported.
Recommendation: We recommend that the City limit the number of employees who can post journal
entries in the subledger and general ledger, and implement system control to ensure all journal entries
are reviewed before posting.
Status: Not implemented. See current year finding 2025-001.
14
Page 466 of 525
City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2025
Section III – Prior Year Findings, continued
A. Financial Statement Audit Finding, continued
2024-002 Payroll Module Implementation (Significant Deficiency)
Criteria: An effectively implemented payroll system should process the payroll accurately, and an
effective internal control system over payroll requires timely and accurate payroll processing.
Condition: During the performance of the audit, we noted that –
• The Oracle payroll module has overtime configuration implemented incorrectly, and the City has to
manually track the payroll in a spreadsheet and correct the error as it occurs since the
implementation.
• The configuration of payroll journal entries posting was implemented incorrectly which caused the
variance between the bank record and the City’s general ledger.
Cause: The Oracle payroll module has not been implemented correctly.
Effect: Errors and fraud can go undetected in payroll processing with a large volume of manual
corrections needed.
Recommendation: We recommend the City to work with the third-party vendor to correct the
implementation of payroll module.
Status: Not Implemented. See current year finding 2025-002.
B. Federal Award Audit Finding
No findings or questioned costs were noted in the prior year.
15
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Page 468 of 525
City of San Luis Obispo
Transportation
Development Act Funds
Financial Statements
Years Ended
June 30, 2025 and 2024
Page 469 of 525
Page 470 of 525
City of San Luis Obispo, California
Transportation Development Act Funds
Financial Statements
Years Ended June 30, 2025 and 2024
Page 471 of 525
Page 472 of 525
City of San Luis Obispo,
California
Transportation Development
Act Funds Report and
Financial Statements
Year Ended June 30, 2025 and 2024
Table of Contents
Page
Independent Auditor’s Report..................................................................................................................................................1
Balance Sheets ........................................................................................................................................................................5
Statements of Revenues, Expenditures and Changes in Fund Balance –
Years Ended June 30, 2025 and 2024 ......................................................................................................................................6
Statements of Fund Net Position..............................................................................................................................................7
Statements of Revenues, Expenses and Changes in Fund Net Position –
Years Ended June 30, 2025 and 2024 ......................................................................................................................................8
Statements of Cash Flows .......................................................................................................................................................9
Notes to Financial Statements ................................................................................................................................................11
TDA Fund Supplementary Information
Schedule of Revenues and Expenditures –Budget and Actual –
Years Ended June 30, 2025 and 2024 ....................................................................................................................................21
Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit
of Financial Statements Performed in accordance with Government Auditing Standards ....................................................23
Report on Compliance and on Internal Control over Compliance for
Transportation Development Act Funds ................................................................................................................................25
Page 473 of 525
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Page 474 of 525
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of San Luis Obispo
San Luis Obispo, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the Transportation Development Act (TDA)
Fund and the Transit Fund of the City of San Luis Obispo, California, as of and for the year ended June
30, 2025 and 2024, and the related notes to the financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
respective financial position of the TDA Fund and the Transit Fund, as of June 30, 2025 and 2024, and
the respective changes in financial position for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards (GAS), issued by the Comptroller General of the United States. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are required to be independent of the City and to meet our other
ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Responsibilities of Management for the Financial Statements
The City’s management is responsible for the preparation and fair presentation of the financial
statements in accordance with accounting principles generally accepted in the United States of
America, and for the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the TDA fund and the Transit
Fund’s ability to continue as a going concern for twelve months beyond the financial statement date,
including any currently known information that may raise substantial doubt shortly thereafter.
Page 475 of 525
To the Honorable Mayor and Members of the City Council
of the City of San Luis Obispo
San Luis Obispo, California
Page 2
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a
material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control. Misstatements are considered
material if there is a substantial likelihood that, individually or in the aggregate, they would influence
the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the TDA fund and the Transit Fund’s internal control.
Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the TDA fund and the Transit Fund’s ability to continue as a
going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control–
related matters that we identified during the audit.
Emphasis of Matter
As discussed in Note 1, the financial statements present only the TDA Fund and the Transit Fund and
do not purport to, and do not,present fairly the financial position of the City, as of June 30, 2025 and
2024, and the changes in its financial position or where applicable,its cash flows for the years ended in
accordance with accounting principles generally accepted in the United States of America.Our opinion
is not modified with respect to this matter.
2
Page 476 of 525
To the Honorable Mayor and Members of the City Council
of the City of San Luis Obispo
San Luis Obispo, California
Page 3
Required Supplementary Information
Management has omitted management’s discussion and analysis that accounting principles generally
accepted in the United States of America require to be presented to supplement the basic financial
statements. Such missing information, although not a part of the basic financial statements, is required
by the Governmental Accounting Standards Board who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. Our opinions on the basic financial statements are not affected by this missing
information.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Transportation Development Act (TDA) Fund and the Transit Fund’s
financial statements. The budgetary comparison schedule is presented for purposes of additional
analysis and is not a required part of the financial statements.
The budgetary comparison schedule on page 21 is the responsibility of management and was derived
from and relate directly to the underlying accounting and other records used to prepare the financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of America. In our opinion, the
budgetary comparison schedule is fairly stated in all material respects in relation to the financial
statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 16,
2025 on our consideration of the TDA fund and the Transit Fund’s internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements and other matters. The purpose of that report is solely to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing, and
not to provide an opinion on the effectiveness of internal control over financial reporting or on
compliance.That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the TDA fund and the Transit Fund’s internal control over financial
reporting and compliance.
Badawi &Associates, CPAs
Emeryville, California
December 16, 2025
3
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Page 478 of 525
2025 2024
Assets
Cash and investments 10,050$ 33,132$
Total assets 10,050$ 33,132$
Liabilities and Fund Balance
Liabilities
Unearned revenue -$-$
Total liabilities --
Fund balances:
Unassigned 10,050 33,132
Total liabilities and fund balance 10,050$ 33,132$
City of San Luis Obispo, California
Transportation Development Act (TDA) Fund
Balance Sheets
June 30, 2025 and 2024
The accompanying notes are an integral part of these financial statements.
5
Page 479 of 525
2025 2024
Revenues - intergovernmental allocations 66,918$ 69,451$
Other financing uses - operating transfers to City of San Luis Obispo (90,000) (45,000)
Excess of revenues over other financing uses (23,082) 24,451
Fund balance - beginning of year 33,132 8,681
Fund balance - end of year 10,050$ 33,132$
City of San Luis Obispo, California
Transportation Development Act (TDA) Fund
Statements of Revenues, Expenditures and Changes in Fund Balance
June 30, 2025 and 2024
The accompanying notes are an integral part of these financial statements.
6
Page 480 of 525
2025 2024
Assets
Current assets:
Cash and investment 7,609,119$ 8,850,539$
Interest receivable 46,685 40,580
Due from other governments 6,396,968 2,397,142
Total current assets 14,052,772 11,288,261
Capital assets:
Infrastructure 110,972 110,972
Buildings and improvements 5,212,278 5,212,278
Transit operating equipment 13,205,125 10,558,191
Construction in progress 6,189,900 2,522,125
Total capital assets 24,718,275 18,403,566
Less accumulated depreciation (11,285,382) (10,810,219)
Total capital assets, net of accumulated depreciation 13,432,893 7,593,347
Total assets 27,485,665 18,881,608
Deferred Outflows of Resources
Pension related 189,397 222,768
Other post‐employment benefits related 23,563 19,436
Total deferred outflows of resources 212,960 242,204
Liabilities
Current liabilities:
Accounts payable 1,779,374 639,534
Accrued salaries and compensated absences 64,154 62,067
Unearned revenues 10,058,588 8,466,347
Total current liabilities 11,902,116 9,167,948
Noncurrent liabilities:
Compensated absences, net of current portion 12,574 13,847
Net pension liability 797,275 791,956
Net other post‐employment benefits liability 21,955 25,947
Total noncurrent liabilities 831,804 831,750
Total liabilities 12,733,920 9,999,698
Deferred Inflows of Resources
Pension related -815
Other post‐employment benefits related 18,083 21,807
Total deferred inflows of resources 18,083 22,622
Net Position
Net investment in capital assets 13,432,893 7,593,347
Restricted 1,513,729 1,508,145
Total net position 14,946,622$ 9,101,492$
City of San Luis Obispo, California
Transit Fund
Statements of Fund Net Position
June 30, 2025 and 2024
The accompanying notes are an integral part of these financial statements.
7
Page 481 of 525
2025 2024
Operating revenues:
Passenger fares 234,855$ 250,790$
Special transit fares 750,000 750,000
Other revenue 5,883 2,326
Total operating revenues 990,738 1,003,116
Operating expenses:
Purchased transportation 3,912,353 3,006,116
Other transportation services 587,851 587,497
Fuel and lubricants 461,073 406,007
Other materials and supplies 41,804 42,037
Salaries and wages 256,219 275,338
Fringe benefits 163,245 135,434
General and administrative 460,609 463,491
Depreciation 475,162 436,460
Total operating expenses 6,358,316 5,352,380
Operating loss (5,367,578) (4,349,264)
Nonoperating revenues:
Transportation Development Act operating grants 226,556 733,905
Transportation Development Act capital grants -479,938
Federal Transit Administration operating grants 2,364,895 2,802,275
Federal Transit Administration capital and planning grants 958,938 684,498
Low Carbon Operation Revenue Grant 376,368 -
Federal Stimulus Grants 1,570,203 -
Air Pollution Control District Grant 498,473 -
State of Good Repair (SGR) Grant 9,943 394,054
Interest 494,453 377,325
Total nonoperating revenues 6,499,829 5,471,995
Income (loss) before transfers and capital contribution 1,132,251 1,122,731
Capital Contribution 4,712,879 -
Change in net position 5,845,130 1,122,731
Net position - beginning of year 9,101,492 7,978,761
Net position - beginning of year, as restated 9,101,492 7,978,761
Net position - end of year 14,946,622$ 9,101,492$
City of San Luis Obispo, California
Transit Fund
Statements of Revenues, Expenses and Changes in Net Position
Years Ended June 30, 2025 and 2024
The accompanying notes are an integral part of these financial statements.
8
Page 482 of 525
2025 2024
Cash flows from operating activities:
Cash received from customers (1,416,847)$ 2,211,862$
Cash payments to suppliers for goods and services (3,863,241) (4,317,891)
Cash payments to General Fund for interfund services (460,609) (463,491)
Cash payments to employees for services (392,618) (353,413)
Net cash used in operating activities (6,133,315) (2,922,933)
Cash flows from noncapital financing activities:
Operating grants received 6,005,377 5,094,670
Net cash provided by noncapital financing activities 6,005,377 5,094,670
Cash flows from capital and related financing activities:
Capital grants received 4,712,879 -
Acquisition and construction of capital assets (6,314,709) (1,665,372)
Net cash used in capital and related financing activities (1,601,830) (1,665,372)
Cash flows from investing activities:
Interest on investments 488,348 363,741
Net cash provided by (used in) investing activities 488,348 363,741
Net increase (decrease) in cash and cash equivalents and investments (1,241,420) 870,106
Cash and cash equivalents and investments - beginning of year 8,850,539 7,980,433
Cash and cash equivalents and investments - end of year 7,609,119$ 8,850,539$
City of San Luis Obispo, California
Transit Fund
Statements of Cash Flows
Years Ended June 30, 2025 and 2024
The accompanying notes are an integral part of these financial statements.
9
Page 483 of 525
2025 2024
Reconciliation of operating loss to net cash used in operating activities:
Operating loss (5,367,578)$ (4,349,264)$
Adjustments to reconcile operating loss to net cash used in operating activities:
Depreciation 475,162 436,460
Changes in operating assets, deferred outflows, liabilities,
and deferred inflows:
Accounts receivable (3,999,826) (248,306)
Accounts payable 1,139,840 (276,234)
Unearned revenue 1,592,241 1,457,052
Accrued salaries and compensated absences 814 38,807
Pension related deferred outflows and inflows and net pension liability 37,875 19,815
OPEB related deferred outflows and inflows and net OPEB liability (11,843) (1,263)
Net cash used in operating activities (6,133,315)$ (2,922,933)$
Reconciliation of cash and cash equivalents and investments to the statement
of fund net position:
Cash and investment 7,609,119$ 8,850,539$
Total cash and cash equivalents and investments 7,609,119$ 8,850,539$
Statements of Cash Flows, Continued
Years Ended June 30, 2025 and 2024
City of San Luis Obispo, California
Transit Fund
The accompanying notes are an integral part of these financial statements.
10
Page 484 of 525
City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund
Notes to the Financial Statements
June 30, 2025 and 2024
Note 1 -THE REPORTING ENTITY
The City of San Luis Obispo (the City) operates a fixed route public transportation system within the City limits and to the
California Polytechnic State University (Cal Poly). Vehicle operations and vehicle maintenance are provided under contract by a
private transportation company. Nonvehicle-related support and administrative services are provided by City staff.
The Transportation Development Act (TDA) Fund (the Fund) of the City of San Luis Obispo, California (the City) is a special
revenue fund created by resolution of the City Council to account for the revenues received pursuant to the TDA. Such revenues
allocated under specific state statutes are legally restricted to financial expenditures made of the development and construction of
local streets and roads, including pedestrian and bicycle facilities.
The Transit Fund is an enterprise fund of the City created by resolution of the City Council to account for the revenues received
pursuant to the Transportation Development Act (TDA), Federal Transit Authority (FTA) and the revenues received from the
transit operations described above. Such revenues are allocated under specific statutes and are legally restricted to finance
expenditures made for transit operations, the development of public transportation systems and transportation planning. When both
restricted and unrestricted resources are available for the same purpose, it is the City’s policy to use restricted funds first.
Note 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Measurement Focus, Basis of Accounting and Basis of Presentation
The Transportation Development Act (TDA) Fund’s financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized when measurable and available.
Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay the
liabilities of the current period. For this purpose, the City considers interest and grant revenues earned but not received as
susceptible to accrual under this method. Expenditures are generally recognized at the time liabilities are incurred.
The Transit Fund’s financial statements are reported using the economic resources measurement focus and the accrual basis of
accounting. Revenues are recognized when earned and expenses are recognized when incurred regardless of the timing of related
cash flows. The Fund distinguishes operating revenues and expenses from nonoperating items. Operating revenues and expenses
generally result from providing services in connection with the Fund’s principal ongoing operations. The principal operating
revenues of the Fund are charges to customers for transit services. Operating expenses for the Fund include cost of services,
administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses, including non-exchange transactions such as TDA and FTA grants.
Non-exchange transactions, in which the Transit Fund receives value without directly giving equal value in return, include grants.
Revenue from grants is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibility
requirements include timing requirements, which specify the fiscal year when the resources are to be used or the fiscal year when
use is first permitted; matching requirements, in which the Transit Fund must provide local resources to be used for a specific
purpose; and expenditures requirements, in which the resources are provided to the Transit Fund on a reimbursement basis.
11
Page 485 of 525
City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund
Notes to the Financial Statements
June 30, 2025 and 2024
Page 2
Note 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
Annual Financial Statements
The financial statements of the Transportation Development Act (TDA) Fund and the Transit Fund are intended to reflect the
financial position; results of operations and cash flows where applicable in conformity with generally accepted accounting
principles and are not intended to present the financial position, results of operations, or cash flows of the City of San Luis Obispo,
California.
Measurement Focus, Basis of Accounting and Basis of Presentation
Special Revenue Fund –Transportation Development Act Fund
This fund is used to account for the City’s share of Transportation Development Act (TDA) Article 3 funds that are legally
restricted for the improvement and maintenance of street systems including pedestrian and bicycle facilities. Under the City's
Financial Plan policies, all TDA Article 3 revenues are allocated for alternative transportation purposes. The purpose of this fund
is to account for these revenues.
Enterprise Fund -Transit
This fund is used to account for the operation and maintenance of the City’s transit system. TDA Article 4 and FTA allocations
for transit operations are accounted for in this fund.
Cash, Cash Equivalents,and Investments
Cash and cash equivalents consist of cash on hand, cash balances in checking and money market accounts and short-term
investments, with an original maturity of three months or less. Investments which are in the City’s internal investment pool are
also treated as cash equivalents for the purposes of the statement of cash flows.
Amounts Due from Other Governments
Generally, amounts due from other governments are recorded as revenues when earned. However, when the use of funds is the
prime factor for determining eligibility for grants, revenue is accrued when the related expenses have been made on an approved
grant.
Capital Assets
Capital assets are recorded at cost and depreciated using the straight-line method over their estimated useful lives, ranging from 5
to 20 years. Capital assets are defined by the City as assets with an initial, individual cost of more than $25,000. Detailed capital
assets can be found in Note 5.
12
Page 486 of 525
City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund
Notes to the Financial Statements
June 30, 2025 and 2024
Page 3
Note 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
Net Pension Liability, Deferred Outflows and Deferred Inflows
The City recognizes a net pension liability, which represents the City’s excess of the total pension liability over the fiduciary net
position of the pension reflected in the actuarial reports provided by the California Public Employees’ Retirement System
(CalPERS) plans (Plans). The City has allocated a proportionate share of the net pension liability, deferred outflows, deferred
inflows and pension expense to the Transit Fund. The net pension liability is measured as of the City’s prior fiscal year-end.
Changes in the net pension liability are recorded, in the period incurred, as pension expense or as deferred inflows of resources or
deferred outflows of resources depending on the nature of the change. The changes in the net pension liability that are recorded as
deferred inflows of resources or deferred outflows of resources (that arise from changes in actuarial assumptions or other inputs
and differences between expected or actual experience) are amortized over the weighted average remaining service life of all
participants in the respective pension plan and are recorded as a component of pension expense beginning with the period in which
they are incurred.
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension
expense, information about the fiduciary net position of the City’s CalPERS Plans and additions to/deductions from the Plans’
fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit
payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit
terms. Investments are reported at fair value. Projected earnings on pension investments are recognized as a component of pension
expense.
Other Post-Employment Benefits (OPEB) Liability, Deferred Outflows and Deferred Inflows
For purposes of measuring net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB,
and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan), and additions to or deductions
from the OPEB Plan’s fiduciary net position, have been determined on the same basis as they are reported by the California
Employer’s Retiree Benefit Trust Program (CERBT). For this purpose, benefit payments (including refunds of employee
contributions) are recognized when currently due and payable in accordance with benefit terms. Investments are reported at fair
value.
Generally accepted accounting principles require that the reported OPEB results must pertain to liability and asset information
within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date June 30, 2023 and 2021
Measurement Dates June 30, 2024 and 2023
Measurement Periods July 1, 2023 to June 30, 2024,
and July 1, 2022 to June 30, 2023
Fund Balance
The TDA Fund’s financial statements report fund balance in classifications that comprise a hierarchy based primarily on the extent
to which the City is bound to honor constraints on the specific purpose for which amounts in the funds can be spent. The Fund
does not have a fund balance in the current fiscal year; therefore classification is not necessary. However, GASB Statement No.
54, Fund Balance Reporting and Governmental Fund Type Definitions, identifies five components of fund balance –
nonspendable, restricted, committed, assigned and unassigned.
Nonspendable -This component includes amounts that cannot be spent because they are either (a) not in spendable form or (b)
legally or contractually required to be maintained intact.
13
Page 487 of 525
City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund
Notes to the Financial Statements
June 30, 2025 and 2024
Page 4
Note 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
Fund Balance (Continued)
Restricted -This component consists of amounts that have constraints placed on them either externally by third parties (creditors,
grantors, contributors, or laws or regulations of other governments) or by law through constitutional provisions or enabling
legislation. Enabling legislation authorizes the City to assess, levy, charge or otherwise mandate payment of resources (from
external resource providers) and includes legally enforceable requirements (compelled by external parties) that those resources be
used only for the specific purposes stipulated in the legislation.
Committed -This component consists of amounts that can only be used for specific purposes pursuant to constraints imposed by
minute order authorized by the City Council. Also included in this component are encumbrances which represent legal and binding
obligations for the acquisition of future goods and services. Those committed amounts established by minute order cannot be used
for any other purpose unless the City Council adopts a new minute order so directing. With respect to encumbered amounts, the
City may take steps to cancel the order for goods or services and thereby terminate the obligation.
Assigned -This component consists of amounts that are constrained by the City’s intent to be used for specific purposes but are
neither restricted nor committed. The City Manager or Director of Finance are authorized to assign amounts to a specific purpose.
Constraints imposed on the use of assigned amounts can be removed with no formal Council actions.
Unassigned -This classification represents amounts that have not been restricted, committed,or assigned to specific purposes.
Fund Balance Spending Policy
The City follows a practice in which restricted, committed, assigned, and unassigned fund balances are spent when more than one
amount is available for a specific purpose. When both restricted and unrestricted resources are available for use, it is the City’s
policy to use restricted resources first, then unrestricted resources (committed, assigned and unassigned) as they are needed. When
unrestricted resources (committed, assigned and unassigned) are available for use, it is the City’s policy to use committed
resources first, then assigned, and then unassigned as they are needed.
Budgets and Budgetary Accounting
The City has received national recognition for its use of a two-year Financial Plan and budgetary process that emphasizes long-
range planning and effective program management. Significant features of the City’s two-year Financial Plan include the
integration of Council goal setting into the budgetary process and the extensive use of formal policies and measurable objectives.
The Financial Plan includes operating budgets for two years and a capital improvement plan (CIP) for five years.
Under this multi-year approach, appropriations continue to be made annually; however, the Financial Plan is the foundation for
preparing the budget for the second year. Additionally, unexpended operating appropriations from the first year may be carried
over for specific purposes into the second year with the approval of the City Manager.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results could differ from those estimates.
14
Page 488 of 525
City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund
Notes to the Financial Statements
June 30, 2025 and 2024
Page 5
Note 3 -CASH AND CASH EQUIVALENTS AND INVESTMENTS
Transportation Act Development (TDA) Fund and Transit Fund are pooled with the City’s cash and investments in order to
generate optimum interest income. The City pools its available cash for investment purposes. Cash and cash equivalents are
combined with investments and displayed as Cash and Investments.
At June 30, 2025 and 2024, cash and investments consisted of the following:
Investment Fair Value Measurements
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting
principles. Investment securities classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets
for those securities. Investment securities classified in Level 2 of the fair value hierarchy are valued using matrix pricing or market
corroborated pricing. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices.
Custodial Credit Risk –Deposits
Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. Cash balances held
in banks are insured up to $250,000 by the Federal Depository Insurance Corporation. For custodial credit risk associated with
deposits, the City follows California Government Code, which requires California financial institutions to secure the City’s
deposits by pledging government securities as collateral. The market value of the pledged securities must equal 110% of the City’s
deposits. California law also allows financial institutions to secure the City’s deposits by pledging first trust deed mortgage notes
equal to 150% of the City’s deposits. All deposits held by financial institutions are fully insured or collateralized with securities,
held by the pledging financial institutions’ trust departments in the City’s name.
The City follows the practice of pooling cash and investments for all funds under its direct daily control. Funds held by outside
fiscal agents under provisions of bond indentures are maintained separately.
Interest earned on pooled cash and investments is allocated quarterly to the various funds based on the respective fund’s average
quarterly cash balance. Interest earned from cash and investments with fiscal agents is credited directly to such funds.
Interest Rate Risk
This is the risk that the market value of securities in the portfolio will fall due to changes in general interest rates. In accordance
with its policies in the Investment Management Plan, the City mitigates interest rate risk by:
Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby
avoiding the need to sell securities on the open market before maturity.
Investing operating funds primarily in shorter-term securities.
The City’s investment policy also includes portfolio maturity targets. A minimum of 20% of the portfolio will be invested in
securities maturing in one year or less. Up to 80% of the portfolio can be invested in securities with a maturity over one year, with
no more than 10% of the portfolio invested in securities with a maturity over five years.
2025 2024
Cas h and investment 7,619,169$ 8,883,671$
15
Page 489 of 525
City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund
Notes to the Financial Statements
June 30, 2025 and 2024
Page 6
Note 3 -CASH AND CASH EQUIVALENTS AND INVESTMENTS, Continued
Credit Risk
This is the risk of loss due to the failure of the security issuer or backer. The City’s policies to mitigate credit risk include:
Limiting investments to the safest types of securities. The California Government Code limits the investment vehicles
available to local agencies. The credit risk of these securities is measured by the assignment of a rating by a nationally
recognized statistical rating organization.
Pre-qualifying the financial institutions, broker/dealers, intermediaries and advisors with which the City will do business.
Concentration of Credit Risk
The City’s policies contained in the Investment Management Plan provide guidelines (by type of investment that limits either the
dollar amount, the percent of the portfolio or the maturity term) for diversifying the investment portfolio so that potential losses on
individual securities will be minimized.
The City’s Investment Management Plan outlines the following criteria related to portfolio diversification:
No more than 5% of the City’s portfolio (exclusive of government agency issues or LAIF) shall be placed with any
financial institution.
No more than 25% of the City’s portfolio shall be invested in collateralized certificates of deposit issued by financial
institutions.
Certificates of deposit (negotiable and collateralized) placed by the City shall not constitute more than 15% of the total
assets of the institution; and negotiable certificates of deposit will only be placed with institutions with total assets in
excess of $200 million and that maintain a ratio of equity to total assets of at least 5%.
Additional Cash and Investment Disclosures
See the City of San Luis Obispo June 30, 2025 and 2024 Annual Comprehensive Financial Reports for additional cash and
investment disclosures.
Note 4 -DUE FROM OTHER GOVERNMENTS
At June 30, 2025 and 2024 the amounts due from other governments were as follows:
2025 2024
Federal Transit Administration - capital and operating gr ants 6,396,968$ 2,397,142$
Total 6,396,968$ 2,397,142$
16
Page 490 of 525
City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund
Notes to the Financial Statements
June 30, 2025 and 2024
Page 7
Note 5 -CAPITAL ASSETS
Capital Assets activity for the fiscal year ended June 30, 2025, was as follows:
Capital Assets activity for the fiscal year ended June 30,2024, was as follows:
Balance Deletions /Balance
June 30, 2024 Addi ti ons Transfers/Adjus tment June 30, 2025
Capita l assets not being depreciated:
Cons tr uc tion in progress 2,522,125$ 6,314,709$ (2,646,934)$ 6,189,900$
Capita l assets being depreciated:
Infr astructur e 110,972 - - 110,972
Bui ldings and imp rovements 5,212,278 - - 5,212,278
Transit operating equipme nt 10,558,191 - 2,646,934 13,205,125
Total capital assets being depreciated 15,881,441 - 2,646,934 18,528,375
Le ss accumulated depreciati on (10,810,219) (475,163) - (11,285,382)
Total capital assets, net of accumulated depreciation 7,593,347$ 5,839,546$ -$ 13,432,893$
Ba la nce Dele tions/Ba la nce
June 30, 2023 Additions Transters Ju ne 30, 2024
Ca pital assets n ot being depreciated:
Co nstruction in p ro gres s 2,408,227$ 1,665,372$ (1,551,474)$ 2,522,125$
Ca pital assets b eing depreciated:
In frastru cture 110,972 - - 110,972
Bu ild in gs and improveme nts 5,212,278 - - 5,212,278
Trans it o pera ting equipment 9,006,717 - 1,551,474 10,558,191
Total cap it al assets b eing depreciated 14,329,967 - - 15,881,441
Le ss accumu la ted depreciation (10,373,759) (436,460) - (10,810,219)
Total capital a ssets , n et of accumulated depreciation 6,364,435$ 1,228,912$ 1,551,474$ 7,593,347$
17
Page 491 of 525
City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund
Notes to the Financial Statements
June 30, 2025 and 2024
Page 8
Note 6 -INTERGOVERNMENTAL ALLOCATIONS
The City has been allocated the following funds from the State Transit Assistance Fund (STAF), Local Transportation Fund (LTF)
and State of Good Repair (SGR) for the years ended June 30, 2025 and 2024. The amounts have been and will be used for both
operating expenses and capital assets.
For the years ended June 30, 2025 and 2024, the City also directly allocated $1,237,660 and $1,275,654, respectively,of LTF
Article 4.0, Section 99260 funds to San Luis Obispo Regional Transit Authority (SLORTA).These funds are not shown in the
accompanying financial statements.
In addition to TDA allocations for the year ended June 30, 2025, the City received a Low-Carbon Transit Operations Program
(LCTOP) allocation of $376,378 to be spent toward the purchase of one electric bus and vehicle charging infrastructure. As of
June 30, 2025, the vehicle and infrastructure had not been placed in service and they are reflected as construction in progress.
Note 7 -FARE REVENUE RATIOS
For the years ended June 30, 2025 and 2024 the City had fare revenue ratios of 228%, and 121%,respectively, computed as
follows:
Ar ticle Se ction 2025 2024
LTF 3.0 99233.3 66,981$ 69,451$
LTF 4.0 99260 1,957,532 1,953,245
STAF 6.5 99313 542,448 648,214
STAF 6.5 99314 66,458 69,436
SGR 6.5 99314 9,943 9,054
SGR 6.5 99313 - 385,000
2,643,362$ 3,134,400$
Ap plicabl e
Al locating TDA Stat ut e Am ount
2025 2024
Operating revenue s - fares 984,855$ 1,000,790$
Other local support - federal grants 8,859,273 3,486,773
(a) Net Oper ating revenue s 9,844,128 4,487,563
(b) Net operating costs, net of depreciation and vehicle lease costs 5,883,154$ 4,915,920$
Exclude capital expenses und er uni form system of accounts
for purposes of calculating fa re revenue ratios but
treated as operating expenses for financial statements (1,564,941) (1,202,446)
(b) Adjusted operating costs for purposes of calculating fare revenue ratios 4,318,213$ 3,713,474$
(c) Fare revenue ratio [(a) / (b)]228%121%
18
Page 492 of 525
City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund
Notes to the Financial Statements
June 30, 2025 and 2024
Page 9
Note 7 -FARE REVENUE RATIOS, Continued
Due to the global pandemic, the California legislature passed AB 90 and AB 149. AB 90 prohibits the imposition of a penalty on
an operator that does not maintain the required ratio of fare revenues to operating cost during the 2021–22, 2022–23, and 2023-24
fiscal years.AB 149 extends the penalty exemption through the fiscal year 2024-25 as well as authorizes transit operators to
include federal grant funds as local funds for the purpose of computing fare revenue ratios.
TDA regulations require a minimum ratio of 20% for a municipality the size of the City. The City is in compliance with the
applicable TDA regulations for the year ended June 30, 2025 and June 30,2024.
Note 8 -PENSIONS
The City contributes to the California Public Employees’ Retirement System (CalPERS) for its employees and participates in an
agent-multiple employer plan (Miscellaneous Plan) for its miscellaneous employees. The City has allocated a portion of the
Miscellaneous Plan that relates to the Transit Fund. The portion of the net pension liability allocated to the Transit Fund for the
years ended June 30, 2025 and 2024 were $797,275 and $791,956, respectively. The portion of the deferred outflows of resources
allocated to the Transit Fund for the years ended June 30, 2025 and 2024 were $189,397 and $222,768, respectively. The portion
of the deferred inflows of resources allocated to the Transit Fund for the years ended June 30, 2025 and 2024 were $0 and $815
respectively. The portion of the pension expense allocated to the Transit Fund for the years ended June 30, 2025 and 2024 were
$131,104 and $19,815 respectively, and is shown as a part of total fringe benefits in the related fiscal year.
Additional Pension Disclosures
See the City of San Luis Obispo June 30, 2025 and 2024 Annual Comprehensive Financial Reports for additional pension
disclosures as well as required supplementary information.
Note 9 -OTHER POST-EMPLOYMENT BENEFITS (OPEB)
The City’s primary other post-employment benefits (OPEB) cost obligation is for retiree health benefits under its election to
participate in the CalPERS Health Benefit Program, an agent multiple-employer defined benefit OPEB plan, under the “unequal
contribution option.” The City has allocated a portion of the plan that relates to the Transit Fund. The portion of the net OPEB
liability allocated to the Transit Fund for the years ended June 30, 2025 and 2024 were $21,955 and $25,947, respectively. The
portion of the deferred outflows of resources allocated to the Transit Fund for the years ended June 30, 2025 and 2024 were
$23,563 and $19,436, respectively. The portion of the deferred inflows of resources allocated to the Transit Fund for the years
ended June 30, 2025 and 2024 were $18,083 and $21,807 respectively. The portion of the OPEB expense allocated to the Transit
Fund for the years ended June 30, 2025 and 2024 were $1,785 and $1,064,respectively,and is shown as a part of total fringe
benefits in the related fiscal year.
Additional OPEB Disclosures
See the City of San Luis Obispo June 30, 2025 and 2024 Annual Comprehensive Financial Reports for additional OPEB
disclosures as well as required supplementary information.
Operating Transfers
The City expends all amounts for alternate transportation projects in its General Fund or Capital Outlay Fund. LTF monies
received by the City are initially deposited in the Transportation Development Act (TDA) Fund and subsequently transferred to the
General Fund, where such funds are expended or transferred to the Capital Outlay Fund to be expended on designated
transportation projects.
19
Page 493 of 525
City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund
Notes to the Financial Statements
June 30, 2025 and 2024
Page 10
Note 10 -COMMITMENTS AND CONTINGENCIES
Regional Transit Authority Pension Expense
The City is presently a member agency of the San Luis Obispo Regional Transit Authority (see ACFR Note 10), a duly established
Joint Powers Authority (JPA) comprised of all local cities and the County of San Luis Obispo. The City’s contractual contribution
to that entity is approximately 18%of the total expense. The City was advised that the Regional Transit Authority was working
with CalPERS to determine whether it is required to enroll certain previously unenrolled transit employees in the CalPERS
pension system and whether the entity may be liable for obligations related to the failure to enroll those employees and make
contributions on their behalf. On December 10, 2019 the County Board of Supervisors approved a contract for participation of the
JPA in the San Luis Obispo County Pension Trust and the Employees Retirement Plan. The current amount of potential CalPERS
unfunded liability for the JPA may reach as high as $4 million. It is not anticipated that the City’s annual payment to the JPA will
increase to satisfy this unfunded liability.
Note 11 -SUBSEQUENT EVENTS
Events subsequent to June 30, 2025 have been evaluated through December 16, 2025,which is the date the financial statements
were available to be issued. Management did not identify subsequent events that required disclosure.
20
Page 494 of 525
2025 Original Final Actal
Revenues - intergovernmental allocations 90,000$ 90,000$ 66,918$ (23,082)$
Other financing uses - operating transfers
to City of San Luis Obispo (90,000) (90,000) (90,000) -
Excess of revenues over other financing uses -$-$(23,082)$ (23,082)$
2024 Original Final Actal
Revenues - intergovernmental allocations 45,000$ 45,000$ 69,451$ 24,451$
Other financing uses - operating transfers
to City of San Luis Obispo (45,000) (45,000) (45,000) -
Excess of revenues over other financing uses -$-$24,451$ 24,451$
Budget Variance with
Final Budget
Positive
City of San Luis Obispo, California
Transportation Development Act (TDA) Fund
Supplementary Information
Schedules of Revenues and Expenditures - Budget and Actual
June 30, 2025 and 2024
Variance with
Final Budget
Positive
(Negative)
Budget
21
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Page 496 of 525
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
of the City of San Luis Obispo
San Luis Obispo, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the Transportation
Development Act (TDA) Fund and the Transit Fund (TDA Program) of the City of San Luis Obispo,
California (City), as of and for the year ended June 30, 2025,and the related notes to the financial
statements, and have issued our report thereon dated December 16, 2025.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal
control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control.
Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the entity’s financial statements will not be prevented or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify
any deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses or significant deficiencies may exist that were not identified.
Page 497 of 525
To the Honorable Mayor and Members of the City Council
of the City of San Luis Obispo
San Luis Obispo, California
Page Two
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the TDA Program’s financial statements are
free from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit and,accordingly, we do not express
such an opinion.The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
entity’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Badawi &Associates, CPAs
Emeryville, California
December 16, 2025
24
Page 498 of 525
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL
OVER COMPLIANCE FOR TRANSPORTATION DEVELOPMENT ACT FUNDS
Independent Auditor’s Report
To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California
Report on Compliance
Opinions
We have audited the City of San Luis Obispo’s (City)compliance with the types of compliance
requirements described in Section 6666 and 6667 of the Rules and Regulations of the California
Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the
Act)and the allocation instructions and resolutions of the San Luis Obispo Council of Governments
applicable to the City’s Transportation Development Act Article 3, 4 and 6.5 Program (TDA Program)
for the years ended June 30, 2025 and 2024.
In our opinion, the City complied, in all material respects, with the compliance requirements referred
to above that could have a direct and material effect on its TDA Program for the years ended June 30,
2025 and 2024.
Basis for Opinion
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America (GAAS); the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States; and Section 6666 and 6667 of
the rules and regulations of the California Administrative Code in the Transportation Development Act
Statutes and Administrative Code for 1987 (the Act); and the allocation instructions and resolutions of
the San Luis Obispo Council of Governments.Our responsibilities under those standards and the Act
are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our
report.
We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the
City’s TDA Program. Our audit does not provide a legal determination of the City’s compliance with
the compliance requirements referred to above.
Page 499 of 525
To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California
Page 2
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements
of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the
City’s TDA Program.
Auditors’Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an
opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance
but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance
with GAAS, Government Auditing Standards, and the Section 6666 and 6667 of the Rules and Regulations
of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code
for 1987 (the Act)and the allocation instructions and resolutions of the San Luis Obispo Council of
Governments will always detect material noncompliance when it exists. The risk of not detecting
material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Noncompliance with the compliance requirements referred to above is considered material if there is a
substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a
reasonable user of the report on compliance about the City’s compliance with the requirements of the
TDA Program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Section 6666
and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation
Development Act Statutes and Administrative Code for 1987 (the Act)and the allocation instructions and
resolutions of the San Luis Obispo Council of Governments,we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, whether due to fraud or error, and
design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the City’s compliance with the compliance
requirements referred to above and performing such other procedures as we considered
necessary in the circumstances.
Obtain an understanding of the City’s internal control over compliance relevant to the audit in
order to design audit procedures that are appropriate in the circumstances and to test and
report on internal control over compliance in accordance with the Section 6666 and 6667 of the
Rules and Regulations of the California Administrative Code in the Transportation Development Act
Statutes and Administrative Code for 1987 (the Act)and the allocation instructions and resolutions
of the San Luis Obispo Council of Governments,but not for the purpose of expressing an
opinion on the effectiveness of City’s internal control over compliance. Accordingly, no such
opinion is expressed.
26
Page 500 of 525
To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California
Page 3
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and any significant deficiencies and material weaknesses in
internal control over compliance that we identified during the audit.
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of the Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code
in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act)and the allocation
instructions and resolutions of the San Luis Obispo Council of Governments on a timely basis. A
material weakness in internal control over compliance is a deficiency, or combination of deficiencies in
internal control over compliance, such that there is a reasonable possibility that material
noncompliance with a type of compliance requirement of the Section 6666 and 6667 of the Rules and
Regulations of the California Administrative Code in the Transportation Development Act Statutes and
Administrative Code for 1987 (the Act)and the allocation instructions and resolutions of the San Luis
Obispo Council of Governments will not be prevented, or detected and corrected, on a timely basis. A
significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in
internal control over compliance with a type of compliance requirement of the Section 6666 and 6667 of
the Rules and Regulations of the California Administrative Code in the Transportation Development Act
Statutes and Administrative Code for 1987 (the Act)and the allocation instructions and resolutions of the
San Luis Obispo Council of Governments that is less severe than a material weakness in internal
control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the
Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify
all deficiencies in internal control over compliance that might be material weaknesses or significant
deficiencies in internal control over compliance. Given these limitations, during our audit we did not
identify any deficiencies in internal control over compliance that we consider to be material
weaknesses, as defined below. However, material weaknesses or significant deficiencies in internal
control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
27
Page 501 of 525
To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California
Page 4
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
the Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the
Transportation Development Act Statutes and Administrative Code for 1987 (the Act), and the allocation
instructions and resolutions of the San Luis Obispo Council of Governments.Accordingly, this report is
not suitable for any other purpose.
Badawi &Associates, CPAs
Emeryville, California
December 16, 2025
28
Page 502 of 525
7 Item 7b
Department: City Attorney
Cost Center: 1500
For Agenda of: 1/13/2025
Placement: Public Hearing
Estimated Time: 60 minutes
FROM: Christine Dietrick, City Attorney
SUBJECT: INTRODUCE AN ORDINANCE ESTABLISHING CITYWIDE SINGLE
VOTE FOR COUNCIL ELECTIONS IN 2026 AND SUBSEQUENT
ELECTIONS
RECOMMENDATION
Adopt an ordinance adding chapter 2.38, entitled “Citywide Single Vote Method of
Electing City Councilmembers” to the San Luis Obispo Municipal Code, implementing a
new method for elections of City Councilmembers and adopting regulations providing for
the administration of City Council elections by Citywide Single Vote beginning in
November 2026
POLICY CONTEXT
In November 2024, the City Council approved a settlement of a California Voting Rights
Act (“CVRA”) demand letter served on the City by attorney Kevin Shenkman on behalf of
his client Southwest Voter Registration Education Project on February 17, 2023. Part of
the settlement was agreement to a Stipulated Judgement under which the parties agreed
that the City would transition to a “Citywide Single Vote” model for electing
Councilmembers, beginning in the 2026 election cycle.
The recommended action implements the settlement agreement and the Stipulated
Judgement, ensuring the City’s compliance with its contractual and legal obligations. The
ordinance is also consistent with the San Luis Obispo City Charter because it maintains
an at-large system of electing Councilmembers, as required by the City’s Charter, Section
402. The transition to Citywide Single Vote is also consistent with the City’s Diversity,
Equity and Inclusion Major City Goal, in that it advances voter equity and reduces the
potential for unlawful minority vote dilution that otherwise may be associated with
standard at-large elections systems.
Finally, the recommended action also seeks to ensure that the County Registrar of Voters
will be able to administer the new elections model as part of a consolidated electi on,
consistent with historical practices to consolidate the administration of City elections with
state and federal elections, which is considerably less expensive, more convenient for
voters, and more efficient than the City running its own separate municipal elections. As
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Item 7b
such, the recommended action is consistent with the City’s Cultural Vitality, Economic
Resiliency and Fiscal Sustainability Major City Goal.
DISCUSSION
Background
The Council authorized staff to enter into settlement negotiations throughout 2023 and
2024 to reach a mutually beneficial settlement of the CVRA demand. Council ultimately
approved the settlement that is the basis of the currently recommended action in
November of 2024. The staff report and more substantial background discussion can be
reviewed here. The San Luis Superior Court approved the Stipulated Judgement that
was part of the settlement on January 27, 2025.
The recommended ordinance adoption is the next step in the implementation of the
settlement agreement and Stipulated Judgement and ensuring a smooth transition and
implementation of the Citywide Single Vote. In short, the recommended ordinance
formally establishes Citywide Single Vote as the method of electing City Councilmembers
in 2026 and subsequent elections. The ordinance would codify the local legal structure
for the City to move from the current “vote-for-two candidates to elect two
Councilmembers” model, to a “vote-for-one candidate to elect two Councilmembers”
model, whereby the top two candidates receiving the most single votes are elected to
Council.
The ordinance also includes ballot instructions to ensure clear direction to voters and
adds clarity for the elections official administering City Council election s regarding
implementation of the Citywide Single Vote system. The ordinance clarifies and resolves
inconsistencies between the generally applicable Elections Code ballot language and the
specific ballot language necessary to implement the new system.
Pursuant to the California Government Code Section 36937 and California Elections
Code Section 9235, elections ordinances take effect immediately upon adoption and do
not require the 30-day waiting period generally applicable to ordinance adoption.
Public Engagement
Since approval of the settlement and Stipulated Judgement by the City Council and the
Superior Court, respectively, staff has been working to develop a robust public outreach,
education and engagement plan. Voter education is already underway and will continue,
expanding significantly as the 2026 election nears.
City staff will present an overview of the outreach plan at a City Council meeting on
January 20, 2026.
In November 2025, staff presented and recorded a significant Candidate Education
Forum in collaboration with the Latino Outreach Council to ensure that current and
prospective voters and prospective Council candidates are aware of and have access to
information and resources about the new elections system well in advance of the 2026
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Item 7b
election. That presentation recording and other information and resources can be
accessed here www.slocity.org/SingleVote.
CONCURRENCE
The City Clerk concurs with the recommendation.
ENVIRONMENTAL REVIEW
The adoption of the recommended ordinance is a policy measure and does not have any
foreseeable impact on the environment and is therefore exempt from environmental review.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2025-26, 2026-2027
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $90,000 $0 $0
State
Federal
Fees
Other:
Total $ $90,000 $0 $0
As a part of the adoption of the 2025-27 Financial Plan, Council approved a total of
$120,000 to support community outreach and engagement for the transition to Citywide
Single Vote system with $90,000 in the 2025-26 Fiscal Year and $30,000 in the 2026-27
Fiscal Year. As noted, an overview of the plan will be presented at the January 20, 2026
City Council meeting.
ALTERNATIVES
The recommended ordinance adoption is a necessary step to implement the settlement
agreement and stipulated judgement to which the City previously agreed, so there is not
a realistic alternative to adoption, although Council may direct modifications to clarify or
amplify provisions of the ordinance consistent with prior commitments.
ATTACHMENTS
A - Draft Ordinance adopting adding Chapter 2.38 to the Municipal Code to implement
and provide regulations for administration of Citywide Single Vote
B - Prior staff report regarding the settlement recommendation and related actions here
Page 505 of 525
Page 506 of 525
O ______
ORDINANCE NO. _____ (2026 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ADDING CHAPTER 2.38, TITLED “CITYWIDE
SINGLE VOTE METHOD OF ELECTING CITY COUNCILMEMBERS” TO
THE SAN LUIS OBISPO MUNICIPAL CODE, IMPLEMENTING A NEW
METHOD FOR ELECTIONS OF CITY COUNCILMEMBERS AND
ADOPTING REGULATIONS PROVIDING FOR THE ADMINISTRATION
OF CITY COUNCIL ELECTIONS BY CITYWIDE SINGLE VOTE
BEGINNING IN NOVEMBER 2026
WHEREAS, the City of San Luis Obispo is a charter city duly established by the
voters of the City of San Luis Obispo pursuant to Article XI of the Constitution of the State
of California, and governed by its duly adopted Charter, including Article III (“Elections”)
and Article IV (“The Council”); and
WHEREAS, pursuant to the California Constitution, Charter cities have broad
plenary powers to make and enforce all ordinances and regulations regarding municipal
affairs, which supersede any conflicting state laws that may otherwise apply to municipal
affairs; and
WHEREAS, the California Constitution, Article XI, Section 5(b) expressly and
specifically establishes “conduct of city elections” as a municipal affair over which the City
has plenary constitutional authority to regulate “…the manner in which, the method by
which, the times at which, and the terms for which the several municipal officers and
employees whose compensation is paid by the city shall be elected or appointed”; and
WHEREAS, the San Luis Obispo City Charter, Section 402 provides that “The
Council Members shall be elected at the general municipal election from the City at large,
two being selected biennially”; and
WHEREAS, on February 17, 2023, the Southwest Voter Registration Education
Project (“SVREP”) served the City with a letter asserting that the City’s existing at -large
election system may violate the California Voting Rights Act (CVRA), Elections Code
sections 14025 et. seq. and demanding that the City transition to district elections, which
are not provided by the City Charter; and
WHEREAS, following settlement negotiations, the City and SVREP entered into
Pre-Litigation settlement agreement and a Stipulated Judgment in San Luis Obispo
County Superior Court, Case No. 24CV-0797, requiring the City to transition to a new
election method known as “Citywide Single Vote”, which is consistent with the City Charter
and within the remedial authority of the superior court pursuant to California Elections
Code Section 14029 (see Pico Neighborhood Assn. v. City of Santa Monica (2023) 15
Cal.5th 292); and
Page 507 of 525
Ordinance No. _____ (2026 Series) Page 2
O ______
WHEREAS, pursuant to the Stipulated Judgment, beginning with the November
2026 election, the City shall implement a new method for the election of City
Councilmembers utilizing Citywide Single Vote, whereby each voter in the 2026 City
Council election, in order to elect the two City Council seats, will cast a single vote for City
Council, and the two candidates receiving the highest number of single votes will be
elected; and
WHEREAS, the City Council has determined it to be necessary and efficient to
adopt an ordinance formally providing for the establishment and implementation of
Citywide Single Vote.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Findings. The recitals set forth hereinabove are hereby adopted as
the findings of the City Council and the City Council makes the following additional
findings of fact, and interpretations of City Charter and Municipal Code, in support of its
adoption of this Ordinance:
a) Implementation of the Citywide Single Vote method of elections for San Luis
Obispo City Councilmembers is consistent with the City Charter’s requirement
that Councilmembers be elected “at-large” and does not require a Charter
amendment.
b) San Luis Obispo City Charter Section 301 provides that, “Unless otherwise
provided by ordinance hereafter enacted, all elections shall be held in
accordance with the provisions of the Elections Code of the State of California,
as the same now exists or may hereafter be amended” (emphasis added);
c) San Luis Obispo Charter Section 301, and the California Constitution,
expressly authorize the City Council to adopt ordinances providing for the
conduct of its local municipal elections in a manner and pursuant to regulations
that differ from otherwise applicable provisions of the California Elections Code.
d) Adopting an ordinance providing for the implementation and administration of
Citywide Single Vote and codifying this ordinance in the Municipal Code
advances public transparency, compliance with the Stipulated Judgment, and
clarity for voters, candidates, and election officials as to the manner and
method of election of San Luis Obispo City Councilmembers and the direction
of the Council as to applicable regulations for the conduct of elections for San
Luis Obispo City Councilmembers under the Citywide Single Vote election
method.
e) The regulations adopted herein are intended to be and shall be applied and
interpreted as the direction of the City Council of the City of San Luis Obispo to
the City Clerk/Elections Official, County Registrar of Voters/County Elections
Page 508 of 525
Ordinance No. _____ (2026 Series) Page 3
O ______
Official, to the extent authorized by law and/or judicial decree, and/or to any
other elections official or personnel administering City of San Luis Obispo
Council elections by or on behalf of the City of San Luis Obispo.
SECTION 2. Addition to Municipal Code. Chapter 2.38, “CITYWIDE SINGLE
VOTE METHOD OF ELECTING CITY COUNCIL MEMBERS” is hereby added to the San
Luis Obispo Municipal Code to read as follows:
Chapter 2.38
CITYWIDE SINGLE VOTE METHOD OF ELECTING CITY COUNCIL
MEMBERS
Section. 2.38.010 - Purpose
Section. 2.38.020 - City Council Elections by Citywide Single Vote Established
Section. 2.38.030 - Mayor to Remain Separately Elected
Section 2.38.040 - Ballot Format and Instructions to Voters
Section 2.38.050 - Authority as a Charter City
Section 2.38.060 - Liberal Construction and Severability
Section 2.38.070 City Council Clarification or Technical Modification
Section. 2.38.010 Purpose.
The purpose of this chapter is to establish and provide the means and methods for
administration for the Citywide Single Vote election method for the election of City
Councilmembers, consistent with the California Constitution, Article XI, the City Charter
Articles III and IV, the California Voting Rights Act (Elections Code §§ 14025 et seq.),
and the Stipulated Judgment entered in Southwest Voter Registration Education Project
v. City of San Luis Obispo (San Luis Obispo Superior Court Case No. 24CV-0797, as it
currently exists or may hereafter be amended from time to time , referred to as
“Stipulated Judgment”, herein).
Section. 2.38.020 City Council Elections by Citywide Single Vote Established.
A. Notwithstanding any law to the contrary, beginning with the November 2026
general municipal election, and for all subsequent elections, unless subsequently
modified by Charter amendment, court order, or Council action pursuant to this
chapter and the Stipulated Judgment, elections for City Councilmembers shall be
conducted using Citywide Single Vote, as set forth in this section.
B. The method of election for City Councilmembers shall be Citywide Single Vote as
follows:
1. Each qualified voter in the City shall be entitled to cast one vote for one
candidate from the group of qualified candidates for City Council.
2. The two candidates receiving the highest number of votes shall be elected.
Page 509 of 525
Ordinance No. _____ (2026 Series) Page 4
O ______
Section. 2.38.030 Mayor to Remain Separately Elected.
There shall be no changes to the manner and method of election of the Mayor. Pursuant
to City Charter Sections 402 and 404, the Mayor shall continue to be elected at-large by
all City voters every two years, for a two-year term, and each qualified voter shall be
entitled to cast one vote for Mayor.
Section 2.38.040 Ballot Format and Instructions to Voters.
A. Notwithstanding any law to the contrary, for City Council elections, the ballots
shall be printed as follows:
1. The group of candidates to be voted on shall be preceded by the designation
of office for which they seek election, stated as “San Luis Obispo City Council
Member”
2. Following the designation of office to be voted on, but preceding the group of
candidates for the office, the ballot shall include the instruction “vote for only
one”
3. Under the group of candidates shall be printed one blank space, defined by a
light line, so as to permit one write-in candidate as an alternative to selecting
a candidate from the group listed on the ballot.
B. The City shall prepare materials for the official voter information guide to be
presented to the elections official responsible for administration of the City
Council election, whether separate or consolidated, that explain the Citywide
Single Vote method of voting, including the limitation to vote for one candidate,
that the two candidates receiving the most single votes will be elected, and that
voting for more than one candidate will result in an “overvote” and will preclude
the ballot with an overvote from being counted.
Section 2.38.050 Authority as a Charter City.
Pursuant to its authority as a Charter City, this Chapter is intended to and shall govern
the presentation of candidates and voter instructions for San Luis Obispo City Council
municipal elections, notwithstanding Elections Code Section 13210 or any other
elections statute or regulation that would otherwise govern the subject matter of a City
Council election, or that may conflict with this Chapter or otherwise interfere with or
preclude the conduct of the Citywide Single Vote method of electing City
Councilmembers as provided by this Chapter.
Section 2.38.060 Liberal Construction and Severability.
This chapter shall be liberally construed to promote its objects and the intention and
direction of the City Council to implement and support the administration of its City
Page 510 of 525
Ordinance No. _____ (2026 Series) Page 5
O ______
Council elections by the Citywide Single Vote method of election. No error, omission or
irregularity shall invalidate an election if there has been a substantial compliance with
this chapter as determined by the City Council. If any section, subsection, sentence, or
clause of this ordinance is for any reason held invalid, such decision shall not affect the
validity of the remaining portions of this ordinance.
Section 2.38.070 City Council Clarification or Technical Modification.
The City Council may, by ordinance or resolution, provide such clarification, technical or
procedural modification, or minor wording changes as may be deemed necessary or
convenient to support and facilitate the administration of the Citywide Single Vote
method of City Council elections, in consultation with the elections official administering
City Council elections.
SECTION 4. A summary of this ordinance, together with the names of Council
members voting for and against, shall be published a t least five (5) days prior to its final
passage, in The New Times, a newspaper published and circulated in this City. This
ordinance shall go into effect at the expiration of thirty (30) days after its final passage.
INTRODUCED AND FINALLY ADOPTED by the Council of the City of San Luis
Obispo on the 13th day of January, 2026, on the following vote:
AYES:
NOES:
ABSENT:
__________________________
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 511 of 525
Page 512 of 525
Item 7c
Department: Administration
Cost Center: 1021
For Agenda of: 1/13/2026
Placement: Business
Estimated Time: 60 minutes
FROM: Greg Hermann, Deputy City Manager
Prepared By: Teresa Purrington, City Clerk
SUBJECT: 2026 COUNCIL COMPENSATION COMMITTEE RECOMMENDATIONS
RECOMMENDATION
As recommended by the Council Compensation Committee:
1. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis
Obispo, California, setting new salaries for the Mayor and Council Members and
reaffirming compensation for Planning Commission and Architectural Review
Commission and amending Council’s Policies and Procedures,” (Attachment A)
increasing the monthly compensation for the Mayor from $2,923 to $4,169 per
month and Council Member from $2,319 to $2,780 per month, and provide a $160
per month stipend for any Council Member or Mayor who is appointed to a
statewide board or policy committee for the duration of their appointed term,
effective the first full pay period in January 2027 ; and renaming Professional
Development funding to Reimbursable Professional Expenses funding; and
2. Increase the Reimbursable Professional Expenses funding amount for Mayor from
$3,600 to $4,400 annually and for Council Members from $2,700 to $3,300
annually. Also, automatically roll over any remaining Reimbursable Professional
Expenses funds from the first year of a Financial Plan to the second year; and
3. Establish an annual $1,000 reimbursement allowance for any Council Member or
Mayor who is appointed to a statewide board or policy committee for travel
expenses related to statewide meetings; and
4. Direct staff to explore the feasibility of an "opt-in" pilot-program to provide $25 per
meeting for all City Advisory Bodies, not including the Architectural Review
Commission (ARC) and Planning Commission (PC), with a cap of three meetings
a month, totaling $75 per month. The ARC and PC compensation would remain at
the same amount of $86 per meeting with a cap of $344 per month.
POLICY CONTEXT
Section 410 of the City’s Charter addresses Council compensation and states:
Compensation for Mayor and Council Members shall be reviewed biennially in
even numbered years. When warranted, said compensation may be adjusted by
Council resolution, to be effective the first full pay period in January of the year
following the review. The compensation rate may be revised by the electorate by
initiative.
Page 513 of 525
Item 7c
Chapter 2 of the Council Policies and Procedures further describes the Council
Compensation Committee and outlines the membership and review responsibilities.
Under this Chapter, Council is to select at least one previously elected official, one
Personnel Board member, and one citizen-at-large. In addition, five additional nominees
should be appointed to complete the seven-member committee.
Resolution No. 10516, adopted May 20, 2014, mandates that compensation for Planning
Commission and Architectural Review Commission members be reviewed in conjunction
with Council compensation.
DISCUSSION
Background
At the May 20, 2025 Council meeting, the City Council unanimously voted to establish a
Council Compensation Committee. The committee was tasked with reviewing the full
Council compensation package and Planning Commission and Architectural Review
Commission stipends to make recommendations to the City Council no later than May 1,
2026. Council also directed the committee to evaluate and make a recommendation on
whether additional Advisory Bodies should receive stipends.
On July 15, 2025, Council appointed previously elected official Andy Pease, Personnel
Board representative Jill LeMieux, and citizens-at-large Erin Foote, Kari Howell, Trent
Johnson, Barry Price, and Joyce Tseng to serve on the committee.
Committee Meetings and Review
The Committee held five meetings in 2025 on September 4, September 30, October 22,
November 13, and December 16. The agenda packets and minutes of the meetings are
available online.
The Committee reviewed the current Council compensation package, including salary,
benefits, expense reimbursement, professional development allowances and other
compensation provided. In addition, the Committee compared the Council’s
compensation package with that of other Mayors and Council Members in 9 other cities
(Charter and General Law).
The Committee also requested staff survey current and previous City Council members
and Advisory Body members. Completed surveys were received from seven current or
previous City Council members and 53 from current or previous Advisory Body members.
The survey questions and response summaries (in italics) are provided below:
Mayor/Council Member Survey Questions
1. On average how many hours per month did they spend on city business (reading staff
reports or background materials, attending Council meetings, liaison assignments or
regional board meetings, meeting and communicating with residents, constitue nts r
Page 514 of 525
Item 7c
organizations, and representing the city in other ways such as attending special city
events.
The responses regarding average number of hours spent on city business were 39
hours per week for Mayor and 21 hours per week for Council Members.
2. Were you able to continue you occupation in the same capacity after joining Council?
More than half of those who responded indicated there was a change in the hours
worked in their current occupation after joining Council.
3. On a scale of one to ten is the current compensation package appropriate for the time
and expertise necessary to serve on Council.
The average response was 4.86.
4. Is there anything you would change in regard to the current compensation package?
The Mayor and Council Member roles require significant, often full-time commitment,
and current compensation, while generous in benefits, can still limit who is able to
serve. The variable and demanding schedule makes it difficult to hold another job
unless it is highly flexible. While some view Council service as largely volunteer and
do not expect professional level pay, there is concern about equity and accessibility.
A modest salary increase could help address the high cost of living in SLO and move
compensation closer to a living wage without fully professionalizing the role.
5. Were there events/conferences that you didn’t attend based on the professional
development funding provided?
The responses were split regarding this question with some indicating that they didn’t
attend conferences or trainings that would have been helpful to learn from other
communities with the same priorities as San Luis Obispo.
6. Do you have additional comments that you feel the Council Compensation Committee
should consider?
Council Members can often balance service with full-time work, but the Mayor’s role
is far more demanding and inflexible due to required public appearances and
obligations. Increasing pay could change the type of candidates and leadership the
City attracts, and higher market-rate salaries might discourage some qualified people
from running if they assume they must leave their current careers with no job to return
to. At the same time, current compensation is not a livable wage for most residents in
SLO, limiting service to those with flexible schedules or independent income. While
the community expects a great deal from its elected officials in a high-cost city, budget
constraints make pay increases difficult to justify now. The key challenge is finding
compensation low enough to avoid over-professionalizing the role, yet sufficient to
reduce financial barriers and allow a broader range of people to serve.
Page 515 of 525
Item 7c
Advisory Body Members Survey Questions
1. On average how many hours per month did you spend on attending meetings, reading
staff reports or background materials and attending special City events ?
While the responses varied widely depending on the Commission or Committee the
average was 8.5 hours per month.
2. Do you have additional comments regarding amount of time s pent performing
Advisory Body duties?
Most respondents reported no major issues or had nothing additional to note. Time
demands can range from minimal to intensive especially for chairs, subcommittee
members, or during grant review periods. Compensation was generally not a
motivating factor, though reimbursement for mileage, public transit and parking
were mentioned.
3. Based on your experience do you feel the current stipend or lack of stipend is
appropriate for the Advisory Body you serve(d) on. Scale from 1-10, 1 being not
appropriate and 10 being very appropriate.
The average of all responses was 6.2 out of 10.
4. Please explain your answer to the previous questions.
The overall consensus is that Advisory Body service is primarily viewed as volunteer
public service, not a job, and most respondents do not personally expect or require
compensation. Many emphasize that they serve out of civic duty, enjoyment, or
commitment to the community, and several would decline a stipend even if offered.
There is also a theme around equity and access. While current volunteers may be
financially able to serve without pay, many acknowledge that lack of compensation
can exclude students, lower-income residents, professionals, or those who must take
time off work to serve. For this reason, respondents generally support modest,
carefully designed compensation as a way to broaden participation.
With the intent of finding out if compensation would affect whether community members
would apply to be on an advisory body, the Committee also approved a three-question
survey for Open City Hall. The survey was posted from October 13, 2025, until October
24, 2025, and 305 individuals responded to the following questions:
Community Survey
1. Would you consider, or have you considered applying for one of the City’s Advisory
Bodies?
49 responded No and 255 responded Yes.
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Item 7c
2. How would compensation for advisory body members affect your decision to apply?
Consensus comments indicate that compensation is not a deciding factor for most,
but a minority say it would positively influence participation, especially when it is a cost
offset such as parking, gas or meals. Several comments noted compensation could
enable participation from those with limited income or work conflicts, increasing
diversity and access.
3. Are there any barriers that might prevent you from applying to serve on an Advisory
Body?
There were 130 responses that there were no barriers to applying to serve . Of the
remaining 174 responses, the barriers are summarized as follows:
Time and Scheduling: Many people said that balancing work, family, and other
commitments is the biggest challenge. Meeting times —especially evenings—can
make participation difficult.
Residency and Eligibility: Some interested individuals live outside City limits but
work in SLO or own property here. Current rules often limit eligibility.
Childcare and Family Responsibilities: Parents noted that childcare and family
schedules can be a barrier, especially for evening meetings.
Selection Process: A few respondents expressed concerns about the application
process feeling slow or exclusive.
Transportation and Parking: Parking availability and public transit schedules were
mentioned as practical hurdles.
Financial and Accessibility Considerations: Some said compensation or cost
offsets (parking, childcare, transportation) would help. Others noted age, mobility,
or vision needs.
The Committee used the responses from all three surveys to guide their
recommendations.
After considering all the information presented, the Committee voted 6-0-1 (Member Price
absent) to recommend to the City Council the following:
Council Compensation
Compensation for Council Members and Mayor should align with the most current
Median Household Income from the U.S. Census for the City of San Luis Obispo of
$66,711 prorated to 20 hours per week for Council Members and 30 hours per week
for Mayor. The Committee recommended increasing the hours per week for the Mayor
to 30 hours from the 25-hour recommendation in 2020 based on survey responses
and Committee discussion. As an alternative, the Committee also discussed and
recommended a salary for the Mayor prorated to 35 hours a week. Median Household
Income was also used by the previous Council Compensation Committee as a means
for determining Mayor and Council Member compensation.
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Item 7c
Table 1 – Council Compensation Committee Recommendation
Annual Hourly
Median Household Income for
the City of San Luis Obispo
(U.S. Census) -
$ 66,711 $ 32.07
Current
Monthly
Salary
Current
Annual
Salary
Est.
Weekly
Worked
Hours
Proposed
Monthly
Salary
Proposed
Annual
Salary
Annual
Increase
from
Current
Annual
Percent
Increase
Council
Member $ 2,319 $ 27,828 20 $ 2,780 $ 33,356 $ 5,528 19.9%
Mayor $ 2,923 $ 35,076 30 $ 4,169 $ 50,033 $ 14,957 42.6%
Alternative
- Mayor $ 2,923 $ 35,076 35 $ 4,864 $ 58,372 $ 23,296 66.4%
Any Council Member or Mayor who is appointed to a statewide board or policy
committee shall be provided with a stipend for the duration of their statewide appointed
term. The stipend shall be equal to 5 hours per month based on the hourly rate of the
Median Household Income. This change is recommended to recognize the additional
commitment associated with participation in a statewide board or committee and the
value to the City for that involvement.
Table 2 – Monthly Stipend for Statewide Board or Policy Committee Appointment
Monthly Statewide
Seat Stipend
Annual Statewide
Seat Stipend
Council
Member or
Mayor
$ 160.36 $ 1,924.36
Professional Development
“Professional Development” funding be retitled to "Reimbursable Professional
Expenses" funding to also include expenses related to representing the City in an
official capacity including expenses incurred within the County. Corresponding
changes to Section 2.3 of Council Policies and Procedure have been included in the
draft Resolution (Attachment A).
Increase annual funding to $3,300 for Council Members and $4,400 for Mayor. Any
funds not used in the first year of a Financial Plan will automatically roll over to the
second year. This amount was last modified in 2016, and the recommended change
is to account for the increased cost of related expenses since that time.
Establish an annual $1,000 per person reimbursement allowance for any Council
Member or Mayor who is appointed to a statewide board or policy committee for travel
expenses related to attendance at a statewide board or policy committee meeting.
Participation in these meetings is often in person and out of the area which incurs
associated travel expenses.
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Item 7c
Table 3 – Professional Development (Renamed to Reimbursable Professional Expenses)
Current
Annual
Professional
Development
Recommended
Reimbursable
Professional
Expenses
%
Increase
from
Current
Annual Total Increase
from Current
Council Member $ 2,700 $ 3,300 22% $600
Mayor $ 3,600 $ 4,400 22% $ 800
Travel Expense
Allowance for
Board or Policy
meetings
$1,000
Advisory Body Member Stipend
The Committee recommends that Council direct staff to explore the feasibility of, and
provide a report back to Council on, an "opt-in" pilot program that would provide $25 per
meeting for all Advisory Body members, not including the ARC and PC, not to exceed
$75 per month. The ARC and PRC compensation would remain the same amount of $86
per meeting with a cap of $344 per month. This change is recommended to improve
accessibility of Advisory Body participation to co mmunity members and offset potential
costs associated with attendance. The table below shows the estimated cost at scenarios
of 100% or 80% of the Advisory Body members choosing to opt-in.
Table 4 – Estimated Cost of Providing Stipend to Advisory Body Members
Average
Number of
Meetings
Per Year1
Number of
Advisory
Body
Members
Recommended
Amount Paid
Annually
(100%
participation)
Recommended
Amount Paid
Annually (80%
participation)
Active Transportation Committee 7 7 $ 1,225 $ 1050
Administrative Review Board 2 3 $ 150 $ 100
Construction Board of Appeals 3 7 $ 525 $ 450
Cultural Heritage Committee 6 7 $ 1,050 $ 900
Human Relations Commission 11 7 $ 1,925 $ 1,540
Investment Oversight Committee 4 1 $100 n/a
Mass Transportation Committee 5 8 $ 1,000 $ 750
Parks & Recreation Commission 9 7 $ 1,575 $ 1,350
Personnel Board 3 5 $ 375 $ 300
Promotional Coordinating
Committee 11 7 $ 1,925 $ 1,650
Revenue Enhancement Oversight
Committee 3 5 $ 375 $ 300
Tourism Business Improvement
District 14 7 $ 2,450 $ 2,100
Tree Committee 9 7 $ 1,575 $ 1,350
Total $ 14,250 $11,840
1 The figure represents the average number of meetings per year based on the total meetings held in
2023, 2024 and 2025.
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Item 7c
Should Council direct staff to move forward with this recommendation, staff would return
to Council with the adoption of the Supplemental Budget with additional information on
the feasibility of a pilot program, including the associated administrative impacts on
payroll, management of trainings required for those receiving compensation, and other
potential impacts to those who decide to opt-in to the pilot program.
Public Engagement
All the meetings of the Council Compensation Committee were published per the Council
adopted noticing guidelines. The Open City Hall survey was available for a three -week
period. Public comment on this item can be provided to the City Council through written
correspondence prior to the meeting and through public testimony at the meeting.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in
this report, because the action does not constitut e a “Project” under CEQA Guidelines
sec. 15378.
FISCAL IMPACT
Budgeted: No Budget Year: 2026-27
Funding Identified:
Fiscal Analysis:
Should Council move forward with all of the Committee’s recommendations, the additional
cost for the 2026-27 Fiscal Year would be $28,690 as increases would begin in January
2027 and $57,381 annually ongoing. Any increases would be included as a part of the
development of the 2026-27 budget and future budgets. This does not include the costs
of a potential “opt-in” pilot program for Advisory Body members which would continue to
be developed if staff is directed to explore the feasibility of a program .
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $28,690 $ $57,381
State
Federal
Fees
Other:
Total $ $28,690 $ $57,381
The monthly salaries of the Mayor and Council Members would be increased from $2 ,923
to $4,169 and $2,319 to $2,780 per month, respectively, beginning in January 2027. The
amounts for reimbursable professional expenses Mayor and Council Members would
increase from $3,600 to $4,400 and $2,700 to $3,300, respectively. Council’s other
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Item 7c
benefits would remain unchanged. This increase to salaries and reimbursable
professional expenses would increase as follows:
Current
Annual
Salary
Proposed
Annual
Salary
Annual
Increase
from
Current
FY 26-27
(6 months)
FY27-28
(ongoing)
City Member $ 27,828 $ 33,356 $ 5,528 $ 11,056 $ 22,112
Mayor $ 35,076 $ 50,033 $ 14,957 $ 7,479 $ 14,957
Alternative - Mayor $ 35,076 $ 58,372 $ 23,296 $11,648 $ 23,296
Monthly Stipend for
Statewide Board or
Policy Committee
Appointment
(assumption Mayor and
2 Council Members)
$ 2,886 $ 5,773
Reimbursable
Professional Expenses
Current
Annual
Amount
Proposed
Annual
Amount
Annual
Increase
FY 26-27
(6 months)
FY27-28
(ongoing)
Council Member $ 2,700 $ 3,300 $ 600 $ 1,200 $ 2,400
Mayor $ 3,600 $ 4,400 $ 800 $ 400 $ 800
Board or Policy
Committee Travel
Reimbursement
$ 1,500 $ 3,000
ALTERNATIVES
1. The Council could decide not to approve the salary increase for Mayor and Council
Members as recommended by the Council Compensation Committee. Should Council
pursue this option, Council could decide to increase the salaries of Mayor and Council
Members by the Consumer Price Index (CPI) amount for the last two years; this would
be a 5.8% increase, increasing Mayor to $3,093 and Council Members to $2,454 per
month.
2. The Council could decide not to approve the recommendations regarding Professional
Development funding. Should Council pursue this option, Council could apply a CPI
catch up from 2016, which was the last time professional development amounts had
been adjusted. This would be a 35% increase to the Professional Development
amounts; City Council would increase to $3,645 and Mayor would increase to $4,860
annually.
3. The Council could decide not to direct staff to explore the feasibility of providing a
stipend of $25 per meeting for all Advisory Body members. Should Council pursue
this option, the PC and ARC would remain the only Advisory Bodies who se members
receive a stipend.
ATTACHMENT
A – Draft Resolution 2026 setting new salaries for Council
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RESOLUTION NO. XXXX (2026 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, SETTING NEW SALARIES FOR THE MAYOR,
COUNCIL MEMBERS, PLANNING COMMISSIONERS, AND
ARCHITECTURAL REVIEW COMMISSIONERS AND AMENDING
COUNCIL’S POLICIES AND PROCEDURES
WHEREAS, Charter Section 410 provides for compensation and reimbursement
of expenses for the Mayor and Council Members and establishes a procedure for a
biennial review by a Council Compensation Committee; and
WHEREAS, on April 19, 2022, Council amended their Policies & Procedures
Manual to add Section 2.1.1, Consumer Price Index Increases, which allows biennial
Consumer Price Index increases to be applied to Council, Planning Commission, and
Architectural Review Commission salaries, effective the first full pay period in January,
without convening a Council Compensation Committee; and
WHEREAS, on May 20, 2025, Council unanimously voted to begin the formation
of a Council Compensation Committee to review the full Council compensation package
and Planning Commission and Architectural Review Commission stipends in lieu of the
CPI increases; and
WHEREAS, Council also directed the Committee to evaluate and make a
recommendation on whether additional Advisory Bodies should receive stipends; and
WHEREAS, on July 15, 2025, Council appointed a seven-member Committee
made up of one previously elected official, one Personnel Board Member and five at large
community members. The Committee has met and reviewed Mayor and Council Member
compensation in accordance with the procedures provided by the Charter; and
WHEREAS, the Council Compensation Committee has determined that the
present criteria for compensation remain valid. However, an adjustment is now
appropriate particularly in light of the increase in the Area Median Income and the official
duties of the Mayor and Council.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Section 2.1 of the Council Policies and Procedures shall be amended
to read as follows:
Effective the first full pay period in January 2027, compensation for services
rendered in an official capacity shall be provided as follows:
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Resolution No. XXXXX (2026 Series) Page 2
R
The Mayor shall receive a monthly salary of $4,169 and each City Council
Member shall receive a monthly salary of $2,780.
Any Council Member or Mayor who is appointed to a statewide board or
policy committee shall receive an additional five hours per month stipend
for the duration of the term of their appointment.
SECTION 2. Section 2.3 of Council Policies and Procedures shall be amended to
read as follows:
2.3 PROFESSIONAL DEVELOPMENT REIMBURSABLE PROFESSIONAL
EXPENSES
Allowances shall be budgeted for the Mayor and each Council Member as
follows:
2.3.1 PROFESSIONAL DEVELOPMENT REIMBURSABLE
PROFESSIONAL EXPENSES - INCLUDING TRIPS AND MEETINGS
For expenses related to representing the City and costs of professional
development and educational conferences designed to improve
understanding of and proficiency in municipal affairs. Said allowance shall
be used for out-of-county expenses only and shall be reimbursed in
accordance with accepted City Travel Guidelines.
Establish an annual travel allowance of $1000 per Council Member and/or
Mayor who is appointed to a statewide board or policy committee to be used
for travel expenses related to statewide attending policy meetings.
SECTION 3. Stipend of Planning Commission and Architectural Review
Commission will remain at $86 per meeting not to exceed $344 per month.
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Resolution No. XXXXX (2026 Series) Page 3
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SECTION 42. Resolution Number 11482 (2024 Series) is hereby repealed and
superseded to the extent inconsistent herewith.
Upon motion of XXXX, seconded by XXXXX, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this XX day of January 2026.
___________________________
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
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