HomeMy WebLinkAboutItem 3a - Staff Agenda Correspondence - Strategic Planning DiscussionG�TY Ofi
IIIO
Io
Council Agenda Correspondence
w+irT ti
��rs o4
DATE: August 25, 2026
TO: Mayor and Council
FROM: Whitney McDonald, City Manager
Prepared By: Natalie Harnett, Policy and Project Manager
SUBJECT: ITEM 3a - STRATEGIC PLANNING DISCUSSION
The following outline is being provided in advance of the August 27, 2026 Special City
Council meeting to help frame the upcoming discussion and offer early visibility into
several questions staff will be bringing forward for Council discussion and feedback during
the meeting.
I. PURPOSE OF DISCUSSION AND RECAP ON 2025 RETREAT
At the 2025 Council retreat, Council expressed interest in refining the Major City Goal
(MCG) process and identified the potential benefits of adopting a Strategic Plan with a
longer -term outlook.
As part of the 2025-27 Financial Plan, Council added a Major City Goal work plan item
under Cultural Vitality, Economic Resilience, and Fiscal Sustainability (Task 5g): "Develop
a strategic framework that connects existing strategic plans, incorporates the City's
mission and vision, and outlines core services to support a longer -term planning approach
beyond the two-year Financial Plan."
The August 27, 2026 Special City Council meeting is intended to gather Council feedback
on how best to evolve the upcoming two-year financial planning and MCG process into a
broader strategic plan that supports long-term planning and community priorities.
Key Opportunities Identified in 2025 Retreat
At the 2025 Council retreat, Council identified several opportunities to strengthen the
process, including:
• Adjust MCG terminology/structure so goals do not serve as overarching
community value statements
• Identify and acknowledge existing City programs and core services, including
work integrated from prior MCGs
• Establish performance metrics/levels of service for each program to clearly
communicate value and service delivery
• Identify existing City plans (program -level and department -level) that inform work
plans, MCGs, and long-term planning
• Provide a longer -term roadmap for community, Council, and staff
City of San Luis Obispo
Page 5 of 9
ITEM 3a - STRATEGIC PLANNING PROCESS DISCUSSION Page 2
• Expand strategic priority horizon to 4-6 years instead of the current two-year
view
II. STRUCTURE OF A STRATEGIC PLAN
Examples of Strategic Plans
Cities approach strategic planning in different ways, but many use similar structures that
support longer -term decision -making. At the 2025 retreat, Council explored a handful of
strategic plans to identify preferred styles and components, including:
• Alameda • Pleasantnn
• Santa Cruz • Carlsbad
Basic Structure
The City's Strategic Plan could follow a standard, widely used structure, generally
consisting of the following components:
• Purpose and function of the plan (see vision statement discussed in next section)
• Strategic Priorities (typically 3-6 pillars identified following community and Council
input)
• Definition of the priorities with goal statements (i.e. what the priority aims to
achieve)
• Identification of tasks that will achieve the goals of each priority
o Some tasks can be pulled from existing strategic plans (see
Alameda example)
• Include a list of existing programs and/or core services that help support or achieve
the goals of the strategic priority (see Carlsbad example)
Questions for Council:
1. Does Council agree with the proposed basic structure?
2. Should one of the example plans listed above be used as a model?
3. Should the plan horizon be 4, 5, or 6 years?
Optional Components
1. Mission, Vision, and Values
Many strategic plans include their mission, vision, or values statements. The City of San
Luis Obispo has an organizational mission statement. A community vision was
established through the General Plan and a City Council Vision was created with the
2017-18 budget. These can remain as foundational elements unless Council wishes to
pursue revisions. Links to or copies of all statements are provided below:
• City of San Luis Obispo Mission Statement
• City of San Luis Obispo City Council Vision: The Council vision statement
was first developed at the March 28, 2017 Council retreat and incorporated
into the 2019-21 Financial Plan. It has been carried forward in all subsequent
Financial Plans.
Page 6 of 9
ITEM 3a - STRATEGIC PLANNING PROCESS DISCUSSION Page 3
"The City of San Luis Obispo is a dynamic community embracing its
future while respecting its past with core values of civility, sustainability,
diversity, inclusivity, regionalism, partnership, and resiliency."
• City of San Luis Obispo Vision Excerpt from General Plan (Page 1-18):
"Our vision is of a sustainable community, within a diverse natural and
agrarian setting, which is part of a larger ecosystem upon which its
existence depends. San Luis Obispo will maintain its healthy and
attractive natural environment valued by residents, its prosperity, and its
sense of safety and community, within a compact urban form. Our
community will have a comprehensible scale, where people know each
other and where their participation in government is welcome and
effective. The general plan outlines basic features of the city needed to
sustain our livelihoods, our natural and historical heritage, and our needs
for interaction and expression. The general plan is a benchmark in the
continuing planning process, reflecting the desires of citizens with
different backgrounds to sustain the community's qualities for
themselves and for future generations.
The City should provide a setting for comfortable living, including work
and recreation. The City should live within its resources, preserve the
relatively high levels of service, environmental quality and clean air
valued by its residents, and strive to provide additional resources as
needed."
Questions for Council:
4. Would Council like to modify the current statements?'
5. If so, when would Council like to discuss and complete the modifications (e.g. as
part of this Brown Bag special meeting, as part of a future Brown Bag special
meeting, as part of the Council Retreat in 2027, etc.)?
2. List of Existing Programs and Key Performance Metrics
As described above, discussion during the 2025 Council Retreat included an expressed
desire to identify and acknowledge existing City programs and core services, including
work integrated from prior MCGs, as well as the desire to establish performance
metrics/levels of service for each program to clearly communicate value and service
delivery.
Some strategic plan examples from other cities include identification of existing core
services provided by the city, as well as listing of any such services that help achieve any
of the strategic priorities identified in the plan. Incorporating a list of the City's existing
programs and key performance metrics or standards for those programs as part of this
Staff recommend that any changes to the community vision or related statements in the General Plan be
included as a work plan item/task for a future financial plan because this would be an amendment to the
General Plan, which should be considered as part of an overall General Plan update process.
Page 7 of 9
ITEM 3a - STRATEGIC PLANNING PROCESS DISCUSSION Page 4
strategic planning process would provide transparency around core services and ongoing
program impact.
Question for Council:
6. Does Council wish to include a list of existing programs and key performance
metrics to be developed with the Strategic Plan?
III. TIMING AND OUTREACH PLAN
The Financial Plan engagement process provides a strong foundation that can be
adapted for Strategic Plan development. Instead of creating a separate engagement
track, staff proposes building upon existing tools such as the Community Priorities Survey
and Community Forum to gather both short-term and long-term input.
Proposed Timeline and Outreach
Tentative
Currently known
proposed Process
Date
as
Setting the Stage
Provide Council and community with an update on
the financial planning process, including:
Nov 17,
Setting the Stage
Budget calendar
2026
High level fiscal update
• Survey details
• Draft strategic plan structure/outline
• Proposed priority -setting process
Nov —Dec,
Community
Community Priorities Survey and Statistical
2026
Priorities Survey
Survey (see next section for detail)
Budget Foundation
Budget
• Review Community Priorities Survey and
Jan 12, 2027
Foundation
Statistical Survey results
• Finalize plans for forum & workshop
• Long-term economic forecast
Community Forum
• Review Community Priorities Survey and
Statistical Survey results
Jan 21 or
Community
• Review key work program tasks from
28, 2027
Forum
existing City plans and policies associated
with priorities
• Receive feedback on potential new key
work program tasks
Council Strategic Priorities Workshop
Feb 2 or 20,
Major City Goal
• Determine Strategic Priorities
2027
Setting
• Identify key work program tasks as time
allows
Page 8 of 9
ITEM 3a - STRATEGIC PLANNING PROCESS DISCUSSION Page 5
Tentative
Currently known
proposed Process
Date
as
Feb —Apr,
Develop work
programs and
Develop 2027-31 Strategic Plan and 2027-29
2027
budget
Financial Plan
Review draft 2027-31 Strategic Plan and 2027-29
Apr 20, 2027
Strategic Budget
Financial Plan including four-year work program
Direction
for Strategic Priorities (previously known as MCG
tasks)
June 1, 2027
Adopt Financial
Adopt 2027-29 Financial Plan and 2027-31
Plan
Strategic Plan
Community Survey
The City already administers a highly participatory Community Priorities Survey every
other November as part of the financial planning process. Beginning this year, and based
on Council direction from the 2025 retreat, staff will also launch a biennial statistically
valid community sentiment survey. An overview of both survey types is provided below:
1. Statistically Valid Community Sentiment Survey (October/November 2026):
This survey will reach approximately 500 residents and provide a representative,
repeatable sample every two years. It will track trends and performance indicators
across City services, offering Council a consistent and standardized picture of
community sentiment. Questions will focus on baseline service perceptions. While
it can inform the strategic planning, its primary value will be demonstrated over
time as performance metrics are tracked longitudinally.
2. Community Priorities Survey (November/December 2026): Several thousand
community members typically participate in this online survey. This survey can be
adapted to serve two purposes: informing development of the longer -term
Strategic Plan and gathering input on Strategic Priorities, as well as input on nearer
term priorities for the two-year financial plan. While historically focused solely on
the two-year Financial Plan priorities, it could now include questions to reflect the
expanded planning horizon. The sections would include:
• Introducing participants to the Strategic Plan concept.
• Soliciting feedback on Strategic Priorities for the 4-year plan horizon, as
well as priorities for the nearer term two-year financial plan horizon. This
section can mirror the prior Community Priorities Survey format to
maintain familiarity for respondents.
Question for Council:
7. Does Council agree with the proposed plan for timing and outreach?
Page 9 of 9