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Home My WebLink About04-02-2026 REOC Agenda Packet Revenue Enhancement Oversight Commission AGENDA Thursday, April 2, 2026, 5:00 p.m. Council Hearing Room, 990 Palm Street, San Luis Obispo The Revenue Enhancement Oversight Commission holds in-person meetings. Zoom participation will not be supported. Attendees of City Council or Advisory Body meetings are eligible to receive one hour of complimentary parking; restrictions apply, visit Parking for Public Meetings for more details. INSTRUCTIONS FOR PUBLIC COMMENT: Public Comment prior to the meeting (must be received 3 hours in advance of the meeting): Mail - Delivered by the U.S. Postal Service. Address letters to the City Clerk's Office at 990 Palm Street, San Luis Obispo, California, 93401. Email - Submit Public Comments via email to advisorybodies@slocity.org. In the body of your email, please include the date of the meeting and the item number (if applicable). Emails will not be read aloud during the meeting. Voicemail - Call (805) 781-7164 and leave a voicemail. Please state and spell your name, the agenda item number you are calling about, and leave your comment. Verbal comments must be limited to 3 minutes. Voicemails will not be played during the meeting. *All correspondence will be archived and distributed to members, however, submissions received after the deadline may not be processed until the following day. Public Comment during the meeting: Meetings are held in-person. To provide public comment during the meeting, you must be present at the meeting location. Electronic Visual Aid Presentation. To conform with the City's Network Access and Use Policy, Chapter 1.3.8 of the Council Policies & Procedures Manual, members of the public who desire to utilize electronic visual aids to supplement their oral presentation must provide display-ready material to the City Clerk by 12:00 p.m. on the day of the meeting. Contact the City Clerk's Office at cityclerk@slocity.org or (805) 781-7114. Pages 1.CALL TO ORDER Chair Bozzano will call the Regular Meeting of the Revenue Enhancement Oversight Commission to order. 2.PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA The public is encouraged to submit comments on any subject within the jurisdiction of the Revenue Enhancement Oversight Commission that does not appear on this agenda. Although the Commission will not take action on items presented during the Public Comment Period, the Chair may direct staff to place an item on a future agenda for discussion. 3.CONSENT Matters appearing on the Consent Calendar are expected to be non- controversial and will be acted upon at one time. A member of the public may request the Revenue Enhancement Oversight Commission to pull an item for discussion. The public may comment on any and all items on the Consent Agenda within the three-minute time limit. 3.a CONSIDERATION OF MINUTES - NOVEMBER 20, 2025 REVENUE ENHANCEMENT OVERSIGHT COMMISSION MINUTES 5 Recommendation: To approve the Revenue Enhancement Oversight Commission Minutes of November 20, 2025. 4.BUSINESS ITEMS 4.a 4a. REVIEW OF AUDITED FINANCIAL STATEMENTS 7 4.b 4b. REVIEW OF SUPPLEMENTAL BUDGET PREVIEW PRESENTED TO COUNCIL ON MARCH 3, 2026 13 5.STAFF AND COMMISSIONER ANNOUNCEMENTS 5.a STAFF UPDATES 5.b COMMISSIONER UPDATES 6.ADJOURNMENT The next Regular Meeting of the Revenue Enhancement Oversight Commission is scheduled for April 23, 2026 at 5:00 p.m. in the Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo. LISTENING ASSISTIVE DEVICES are available -- see the Clerk The City of San Luis Obispo wishes to make all of its public meetings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office at (805) 781-7114 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7410. Agenda related writings or documents provided to the Revenue Enhancement Oversight Commission are available for public inspection on the City’s website, under the Public Meeting Agendas web page: https://www.slocity.org/government/mayor-and-city-council/agendas-and- minutes. Meeting video recordings can be found on the City’s website: http://opengov.slocity.org/WebLink/Browse.aspx?id=61028&dbid=0&repo=CityCl erk Page 4 of 14 1 Revenue Enhancement Oversight Commission Minutes November 20, 2025, 5:00 p.m. Utilities Department Building, 879 Morro Street, San Luis Obispo REOC Commissioners Present: Chair Bozzano, Vice Chair Skapinsky, Commissioner Gardner, Commissioner Johnson, Commissioner McCarthy _____________________________________________________________________ 1. CALL TO ORDER A Regular Meeting of the San Luis Obispo Revenue Enhancement Oversight Commission was called to order on November 20, 2025 at 5:00 p.m. by Chair Bozzano. 2. PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA No Public Comment 3. CONSENT 3a. CONSIDERATION OF MINUTES – MAY 8, 2025 REVENUE ENHANCEMENT OVERSIGHT COMMISSION MINUTES Motioned By Commissioner McCarthy Seconded By Commissioner Johnson To approve the Revenue Enhancement Oversight Commission Minutes of May 8, 2025. Ayes (5): Chair Bozzano, Commissioner Gardner, Commissioner Johnson, Commissioner Skapinsky, Commissioner McCarthy 4. BUSINESS ITEMS 4a. Officer Elections Motioned By Commissioner Gardner Seconded By Commissioner McCarthy Page 5 of 14 2 Ayes (5): Chair Bozzano, Vice Chair Skapinsky, Commissioner Gardner, Commissioner Johnson, Commissioner McCarthy To appoint Anthony Bozzano as Chair and Tony Skapinsky as Vice Chair. 4b. Annual Report Development Motioned By Commissioner Skapinsky Seconded By Commissioner Johnson Ayes (5): Chair Bozzano, Vice Chair Skapinsky, Commissioner Gardner, Commissioner Johnson, Commissioner McCarthy To direct staff to publish the Local Revenue Measure Annual Report with modifications. 5. STAFF AND COMMISSIONER UPDATES 5.a STAFF UPDATES No updates 5.b COMMISSIONER UPDATES No updates 6. Adjournment The meeting was adjourned at 6:35 p.m. Page 6 of 14 Revenue Enhancement Oversight Commission _____________________________________________________________________ Review of Audited Financial Statements As called for by Municipal Code Section 3.15.040 C, the revenue generated by the Local Revenue Measure and the uses of these funds are included in the City’s annual audit and financial statements1. This information is summarized in the table below: The end of year fund balance of $848,111 is held available to offset any revenue shortfalls in the current year. Any unneeded balance will be available for appropriation in the next fiscal year. 1 These audited financial statements can be found on the City’s website at https://www.slocity.org/government/department-directory/finance/finance/audit/-folder- 2002#docfold_3153_9085_5833_2002 Page 7 of 14 Expenditure Details The financial statements also include detailed tables for each expenditure category. These tables become the basis for the Local Revenue Measure Annual Report: Page 8 of 14 Page 9 of 14 Page 10 of 14 Page 11 of 14 Page 12 of 14 Revenue Enhancement Oversight Commission _____________________________________________________________________ Review of Supplemental Budget Preview On March 3, 2026, staff presented a preview of the FY 2026-27 Supplemental Budget in the form of a set of proposed expenditure reductions and operational initiatives intended to make the organization more effective1. Context The 2025-27 Financial Plan was developed in response to slowing revenue growth and rising costs and employed both short term and long-term budget balancing strategies. The long-term forecast for the General Fund, however, still indicated a deficit largely driven by the additional cost to open a fifth fire station as required by the Avila Ranch development agreement: Changes Since Financial Plan Some positive changes have occurred since development of the Financial Plan. Thanks to strong investment returns, payments to CalPERS for unfunded pension liabilities will be lower than previously forecasted. Certain revenue streams, like Transient Occupancy Tax, Development Fees, and Franchise Fees, outperformed expectations in FY 2024-25, leading to increased projections for future years. And, based on the latest expectations for buildout of Avila Ranch, it is expected that some savings will occur in FY 2027-28 due to a delayed launch of the fifth fire station. 1 The staff report can be found here: https://pub- slocity.escribemeetings.com/filestream.ashx?DocumentId=23729 Page 13 of 14 Additional Actions Needed Although the changes since the Financial Plan have largely been positive, they have not been sufficient to close the budget gap. First, a set of expenditure reductions will be implemented. These reductions were carefully designed and limited to minimize service level impacts. Notably, no filled positions will be eliminated. The table below details reductions by department: Of the $1,663,973 in reductions, $576,379 will be re-allocated to public safety overtime budgets for a net reduction of $1,087,594. Finally, in order to balance the budget without significant impacts to service levels, staff recommended that further reductions should come from the capital budget rather than operating. The 2025-27 Financial Plan assumed that the $1.0 million reduction in capital expenditures would be temporary, and that this funding would be restored to the capital budget in FY 2027-28. Based on the fact that the $1.0 million decrease to CIP funding has resulted in minimal impact to City projects, and in order to avoid significant impacts to City services through deeper reductions to the operating budget, staff recommended continuing to fund capital expenditures at this lower level going forward. The CIP has been built to accommodate this funding shift, so no impacts are anticipated to the funding levels or projects included in the current CIP. A funding source for this reduction in capital expenditures was not identified. The Local Revenue Measure is the largest source of capital funds, but not the only source. These proposed changes were presented to the City Council on March 3, 2026 and will be included in the proposed budget for FY 2026-27. Page 14 of 14