CITY OF GROVER BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 7
Placement: Business
Meeting Date: March 9, 2026
TO: Honorable Mayor and City Council
FROM: Matthew Bronson, City Manager
PREPARED BY: Matthew Bronson, City Manager
SUBJECT: Resolution to Adopt the San Luis Obispo Council of Governments Final Transportation Expenditure Plan
RECOMMENDATION
Adopt a Resolution approving the San Luis Obispo Council of Governments Final Draft Transportation Expenditure Plan.
BACKGROUND
The San Luis Obispo Council of Governments (SLOCOG) is the regional transportation planning agency, metropolitan planning organization, and council of governments for San Luis Obispo County. SLOCOG is responsible for long-range regional transportation planning, funding allocation and coordination among the County of San Luis Obispo and the seven incorporated cities including Grover Beach. The SLOCOG Board of Directors includes the County Supervisors and a representative from each city with Mayor Dee serving as the City’s representative.
The San Luis Obispo region faces a substantial and growing funding gap in maintaining and improving its multimodal transportation system. As identified in SLOCOG’s adopted Regional Transportation Plan, the region currently experiences an estimated $2.3 billion shortfall, with updated estimates for the 2027 Plan indicating this need will exceed $3 billion. This gap affects local roadway maintenance, safety improvements, congestion relief, transit reliability, and bicycle and pedestrian connectivity throughout the county.
In 2016, SLOCOG placed a 1/2 cent transportation sales tax on the ballot (Measure J) to provide new transportation revenues within the county but this measure failed to receive the 66.7% approval necessary for a special tax. SLOCOG subsequently evaluated placing a transportation sales tax measure on the November 2024 ballot but ultimately chose not to advance that effort after reviewing public feedback, readiness, and timeliness. These considerations informed SLOCOG’s expanded public engagement and technical work throughout 2025.
The absence of a dedicated, locally controlled transportation revenue source places San Luis Obispo County at a disadvantage relative to the 25 “self-help” counties in California that have voter-approved transportation sales taxes. These counties leverage their local funding to secure substantially more State and Federal competitive grants for highways, corridors, local streets, and mobility programs. Since the failure of Measure J in 2016, the San Luis Obispo region has likely missed $600–700 million in combined Staff Report: SLOCOG Final Draft Transportation Expenditure Plan Page 2 March 9, 2026
local revenue and competitive grant awards that could otherwise have been secured and invested in local and regional transportation improvements.
Overview of Transportation Expenditure Plan
Over the past year, SLOCOG developed a Draft Transportation Expenditure Plan (Plan) and Implementation Guidelines intended to address the regional transportation funding shortfall, respond to public feedback about transportation needs, and establish an equitable distribution of new transportation revenues. This work is associated with a proposed 1/2 cent transportation sales tax measure for the November 2026 election that would generate approximately $35 million annually escalating each year for 30 years within San Luis Obispo County to address local and regional transportation needs.
The Plan allocates funding across four categories shown below with the percentage of funding for each category:
• 55% for local road repairs, safety, and improvements (allocated to each jurisdiction based on population)
• 40% for regional corridor improvements (allocated to four subregions by population share) • 4% for senior/disabled/veterans’ mobility improvements • 1% for administrative costs
The Plan emphasizes transparency, local control, subregional equity, and accountability through provisions such as a Citizens Oversight Committee, maintenance of effort requirements, regular audits, and multi-year implementation plans. Under the Plan, Grover Beach would receive an estimated $865,712 annually in the local road repair category with additional funds for South County improvements available through regional corridor improvement category. Potential examples of regional corridor projects are South 4th Street improvements between Grover Beach and Oceano, North 4th Street improvements between Grover Beach and Pismo Beach, and West Grand Avenue improvements between Grover Beach and Arroyo Grande.
Funds from this Plan would supplement the City’s road repair and maintenance programs which are primarily funded through Measure K-14 bond funds along with Local Transportation Funds, Gas Tax funds, and the General Fund. The City has made significant progress in street repair over the past decade though faces a significant funding shortfall in fully repairing local residential and major arterial streets.
Lastly, while the City received grant funding from SLOCOG in 2024 to partially fund the West Grand Avenue Streetscape Project, future grant funding from SLOCOG would be unlikely without additional countywide transportation revenues.
Initial Draft and Updated Version of Plan
As part of SLOCOG’s public outreach and review process, SLOCOG staff presented the Draft Plan to the seven cities and the County Board of Supervisors in December 2025 and January 2026 including on January 12 to the Council. The purpose of this presentation was to gather input and comment prior to consideration of the draft Plan by the SLOCOG Board on February 4, 2026. Questions and comments raised by the Council included how much visitors pay in sales taxes, grants available for “self-help” counties and whether city-specific sales taxes would qualify for the same grants as “self-help” counties, the 30-year timeframe for the proposed tax, citizen oversight committee process, extent and process for regional project grants, and other topics. SLOCOG staff took this input and compiled it with input from the other cities and the County for discussion at the February 4th SLOCOG Board meeting.
Staff Report: SLOCOG Final Draft Transportation Expenditure Plan Page 3 March 9, 2026
On February 4, the SLOCOG Board reviewed the draft Plan along with input provided by the local jurisdictions. The Board subsequently approved a Final Draft Plan shown in Attachment 2 with the following substantive changes from the Draft Plan:
• Single funding pot for unincorporated County areas changed to equal distribution by Supervisorial District
• Regional funding to be monitored and reported by the Citizens Oversight Committee • Changed timeframe for maintenance of effort funding by local jurisdictions for use of discretionary general fund revenues for transportation purposes from three years to five years with a process to request exemption for unusual one-time general fund allocations • Changed timeframe for review of funds expended (performance assessments) from three years to five years
The Board directed SLOCOG staff to present this Final Draft Plan to the local jurisdictions for approval through adoption of the Resolution shown in Attachment 1. No changes can be made to the Plan at this time following the Board’s approval. If a majority of cities with a majority of incorporated population approve the Plan along with the Board of Supervisors, the SLOCOG Board may adopt the Plan at April 1st SLOCOG Board meeting. As of now, the Plan has been approved by Arroyo Grande, Atascadero, and Paso Robles with other cities considering approval of the Plan later this month. Staff would note that the approval requested in this agenda item is only for the Transportation Expenditure Plan itself and not on the potential ballot measure that could go to voters. Lastly, pending adoption of the Resolution by the Council, staff would allow SLOCOG to use the City’s logo on website and informational materials as part of the implementation of the Council’s action.
FISCAL IMPACT
There is no fiscal impact associated with this agenda item. Under the Transportation Expenditure Plan, Grover Beach would receive an estimated $865,712 annually in the local road repair category with additional funds for South County improvements available through regional corridor improvement category.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Adopt a Resolution approving the San Luis Obispo Council of Governments Final Draft Transportation Expenditure Plan; or
2. Do not adopt the Resolution; or
3. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Staff Report: SLOCOG Final Draft Transportation Expenditure Plan Page 4 March 9, 2026
ATTACHMENTS
1. Resolution
2. Final Draft Transportation Expenditure Plan
Multi-Year Goals
☐ Public Safety and Community Services ☐ Economic Development and Housing ☒ Community Infrastructure ☐ Financial and Organization Sustainability Council Priorities
☐ Water & Wastewater Infrastructure ☐ Community Engagement RESOLUTION NO. 26-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,
CALIFORNIA APPROVING THE SAN LUIS OBISPO COUNCIL OF GOVERNMENTS
FINAL DRAFT TRANSPORTATION EXPENDITURE PLAN
WHEREAS, the streets, roads, highways, transit systems, bicycle and pedestrian facilities within the incorporated and unincorporated areas of San Luis Obispo County are of regional concern and are essential to the safety, mobility, economic vitality, environmental sustainability, and quality of life of residents, businesses, visitors, seniors, veterans, and persons with mobility challenges; and WHEREAS, the Legislature of the State of California has authorized counties to establish voterapproved local transportation sales taxes pursuant to Public Utilities Code Division 19 (commencing with Section 180000) and Revenue and Taxation Code Part 1.6 (commencing with Section 7251); and WHEREAS, keeping roads and highways in good condition and enhancing mobility helps protect public safety by allowing police, firefighters, and ambulances to respond quickly to emergencies and ensuring first responders are not stuck in traffic or slowed down by failing infrastructure; and WHEREAS, a county-wide half-cent sales tax is proposed for voter consideration on the November 2026 ballot; and
WHEREAS, the ½ cent sales tax is paid by both residents and visitors shopping in San Luis Obispo County, including visitors, to ensure all users of local roads and transportation infrastructure contribute; and
WHEREAS, by law, this money must stay in San Luis Obispo County for local transportation improvements only and cannot be taken away by the State or used for other purposes; and WHEREAS, pursuant to Public Utilities Code Section 180206, and through extensive public engagement and coordination with all incorporated cities and the County of San Luis Obispo, SLOCOG has prepared a countywide Transportation Expenditure Plan which guides the investment of revenues generated by this Ordinance, provides for locally controlled funding for transportation repairs and improvements, and requires strict fiscal accountability protections, including a Citizen's Oversight Committee, annual independent audits, and public disclosure of all spending; and WHEREAS, it is the intent of the voters and the Authority/SLOCOG that revenues generated by this Ordinance supplement, and not supplant, existing transportation funding.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach does hereby approve the San Luis Obispo Council of Governments (SLOCOG) final draft Transportation Expenditure Plan (Plan).
On motion by ________, seconded by _________, and on the following roll call vote, to wit:
AYES: Council Members:
NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
Attachment 1
the foregoing Resolution was PASSED, APPROVED, AND ADOPTED at the Regular Meeting of the City Council of the City of Grover Beach, California, this 23rd day of March 2026. ___________________________________
KASSI DEE, MAYOR
ATTEST:
______________________________
WENDI SIMS, CITY CLERK
** D R A F T **
February 5, 2026 SLO County Transportation Expenditure Plan 1 San Luis Obispo County Transportation
Expenditure Plan
I. Introduction
San Luis Obispo County’s transportation system is essential to the safety, mobility, and economic vitality of its residents, businesses, and visitors. Yet existing state and federal revenues are inadequate to maintain local streets and roads, operate reliable transit, and deliver major regional improvements.
This Transportation Expenditure Plan establishes a dedicated local funding source — a voter-approved ½-cent transactions and use tax — projected to generate approximately $35 million per year. All revenues will remain in San Luis Obispo County and may only be used for transportation purposes.
The Plan emphasizes geographic equitable distribution of funds, fairness, transparency, and strong taxpayer safeguards while ensuring flexibility to leverage state and federal funds.
II. Revenue Distribution
Revenues shall be allocated as follows:
A. 55% Local Road Repairs and
Improvements distributed by population
to each city and the County. (Reviewed
every ten years based on census data1
).
B. 40% Regional Corridor
Improvements distributed by subregion
population within the areas defined as
shown.
C. 4% Mobility Services for Seniors,
Veterans and Mobility Challenged
D. 1% Administration
1 Should a new city become incorporated, the percentages would be adjusted to reflect the updated population distribution.
Attachment 2
February 5, 2026 SLO County Transportation Expenditure Plan 2 III. Eligible Uses of Funds
Local Road Repairs and Improvements (55%)
Funds are distributed by population to the cities and the County. County funds shall be distributed equally by Supervisorial District over the life of the measure as monitored and reported by the Citizens Oversight Committee. Funds may be used for:
A. Local road maintenance, rehabilitation, and repair.
B. Safe Routes to School and Safe Routes to College programs.
C. Local intersections, operational and traffic safety improvements.
D. Bridge safety and seismic retrofits.
E. Bicycle and pedestrian improvements (sidewalks, crosswalks, multi-use paths).
F. Community enhancements tied to transportation
(streetscape, lighting, landscaping, wayfinding).
G. Traffic signal improvements and synchronization.
H. Piers, walkways and other pedestrian or bike paths in and around waterfront and river areas.
I. Transit services including local trolley services may be funded if desired by a City.
Regional Corridor Improvements (40%)
Regional project funds shall be distributed by population among subregions over the life of the measure as monitored and reported by the Citizens Oversight Committee and used for:
A. Highway and major corridor congestion relief such as van or carpool lanes or other congestion relief measures.
B. Safety and interchange improvements.
C. Regional bicycle and pedestrian connectors between communities like the Bob Jones Trail.
D. Interagency Transit Access.
E. Mitigation impacts for proposed improvements.
F. Other projects consistent with the adopted Regional Transportation Plan (RTP).
Mobility Services for Seniors, Veterans and Mobility Challenged (4%) Funds shall support improvements to mobility programs that prioritize services for seniors, veterans, and mobility challenged.
Administration (1%)
No more than 1% of annual revenues shall be allocated by the Authority for administration, reporting, auditing, and program oversight.
February 5, 2026 SLO County Transportation Expenditure Plan 3 IV. Governing Board and Organizational Structure
The San Luis Obispo Council of Governments (SLOCOG) serves as the designated Local Transportation Authority for San Luis Obispo County and is responsible for administering the Transportation Measure in compliance with Public Utilities Code (PUC) 180000 et seq. Upon voter approval of the Transportation Measure, the Board of Directors of SLOCOG will serve as the Authority Board, hereafter the Authority, and will oversee its implementation in accordance with the plans and programs detailed in this and future updates of the Expenditure Plan.
This Expenditure Plan provides for the creation of a Citizens’ Oversight Committee to ensure transparency and accountability. Details regarding the Committee are contained in this plan (Section XIV). The Biennial Implementation Plan will be prepared and updated by SLOCOG staff and approved by the Authority Board as per the Ordinance Section 14.
Per PUC 180000, the Authority’s governing board will include representation as follows:
• Five (5) members of the San Luis Obispo County Board of Supervisors • One (1) member representing each incorporated city within San Luis Obispo County—Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, and San Luis Obispo—appointed by their respective city councils.
Alternates to the regular members may participate in accordance with SLOCOG bylaws.
Should another city become incorporated, it will have one seat on the Authority Board.
V. Maintenance of Effort (MOE)
The enabling legislation in Public Utilities Code PUC 180001(e) states:
It is the intent of the Legislature that funds generated pursuant to this division be used to supplement and not replace existing local revenues used for transportation purposes.
Each Agency receiving revenues for “Local Projects” shall annually maintain, at a minimum, the same level of local fully discretionary general fund revenues that were expended on average for fiscal years 2021/22, 2022/23, 2023/24, 2024/25 and 2025/26, for transportation purposes. Dedicated funds for transportation such as gas tax revenues are not counted as general fund revenues. Transfers into the general fund will not be counted as general fund revenues. Grant awards and general fund revenues used as matching funds for grant awards will not be counted as general fund revenues. Revenue from general or special tax measures over and above the agency’s baseline tax of 1 ½% will not be counted as part of general fund revenues for the purposes of MOE.
February 5, 2026 SLO County Transportation Expenditure Plan 4 Unusual one-time general fund allocations that have been expended for transportation purposes may be exempted prior to determining the Agency’s average expenditure for the five fiscal years noted above at the discretion of the Authority.
An agency petitioning for an exception under this provision must supply evidence of the need for special consideration, and the petition must be approved by a majority vote of the Authority Board.
The Authority shall not allocate any Net Revenues to any jurisdiction for any fiscal year until that jurisdiction has certified to the Authority that it has included in its budget for that fiscal year an amount of local discretionary funds for streets and roads purposes at least equal to the level of its maintenance of effort requirement. An annual independent audit will be conducted by the Authority to verify that the maintenance of effort requirements are being met by the jurisdiction. Any Net Revenues not allocated pursuant to the maintenance of effort requirement shall jurisdictions be allocated to the remaining eligible jurisdictions according to the formula described in the Section III.
Exceptions
Subject to Authority approval, if any local jurisdiction had extraordinary local discretionary fund expenditures during any fiscal year it may determine that year’s minimum expenditure base level of local discretionary funds by:
(a) subtracting those extraordinary expenses funding, assessment district contributions, development impact funds, redevelopment agency contributions, or other non-recurring contributions) from its total expenditures; or (b) petitioning the Authority for special consideration. It is possible that a local jurisdiction may need to revise its minimum expenditure base beyond the subtraction of extraordinary expenses. In this instance, the Authority may allow the establishment of a new base for that jurisdiction's Maintenance of Effort requirement.
A local jurisdiction petitioning the Authority under this provision must supply evidence of the need for special consideration and the petition must be approved by a majority vote of the Authority.
VI. Requirements for Eligible Jurisdictions
To be eligible to receive Net Revenues, a jurisdiction shall satisfy and continue to satisfy the following requirements.
February 5, 2026 SLO County Transportation Expenditure Plan 5 A. Mitigation Fee Program. Assess traffic impacts of new development and require new development to pay a fair share of necessary transportation improvements attributable to the new development.
B. Circulation Element. Adopt and comply with its Circulation Element as part of the jurisdiction’s General Plan,
C. Capital Improvement Program. Adopt and update a minimum Five-Year Capital Improvement Program (CIP). The CIP shall include all capital transportation projects, including projects funded by Net Revenues, and shall include transportation projects required to demonstrate compliance with pavement management requirements.
D. Pavement Management Plan. Adopt and update a Pavement Management Plan and provide regular reporting on the status of road pavement conditions and implementation of the Pavement Management Plan.
E. Expenditure Report. Adopt an Expenditure Report to account for Net Revenues, developer/traffic impact fees, and funds expended by the Eligible Jurisdiction which satisfy the Maintenance of Effort requirements. The Expenditure Report shall be submitted by the end of six (6) months following the end of the jurisdiction’s fiscal year and include the following:
1. All Net Revenue fund balances and interest earned.
2. Expenditures identified by type (i.e., capital, operations, administration, etc.), and program or project.
F. Project Final Report. Provide Authority with a Project Final Report for regional projects within six months following completion of a project funded with Net Revenues.
G. Time Limits for Use of Net Revenues for Regional Projects.
1. Agree that Net Revenues for Regional Projects shall be expended or encumbered no later than the end of the fiscal year for which the Net Revenues are programmed. A request for extension of the encumbrance deadline for no more than thirty-six months may be submitted to the Authority no less than ninety days prior to the deadline. The Authority may approve one or more requests for extension of the encumbrance deadline.
2. In the event the time limits for use of Net Revenues for Regional Projects are not satisfied then any retained Net Revenues that were allocated to an Eligible Jurisdiction and interest earned thereon shall be returned to the February 5, 2026 SLO County Transportation Expenditure Plan 6 Authority and these Net Revenues and interest earned thereon shall be available for allocation to any project within the same source program.
H. No Supplanting of Funds. Agree that Net Revenues shall not be used to supplant developer funding which has been or will likely be committed for any transportation project.
I. Public Notice of Use of Measure Funds. Member agencies will provide the public with planned use of measure funding as part of its annual or biennial budget process. This includes each City and Community Advisory Council will receive at a minimum, twice per programming year presentations from jurisdictional staff to review proposed investments prior to annual allocations.
Determination of Non-Eligibility
A determination of non-eligibility of a jurisdiction shall be made only after a hearing has been conducted and a determination has been made by the Authority that the jurisdiction is not an Eligible Jurisdiction as provided hereinabove.
VII. Taxpayer Safeguards
A. A transportation special revenue fund (the “Local Transportation Authority Special Revenue Fund”) shall be established to maintain all Revenues.
B. Accounting Receipt, maintenance and expenditure of Net Revenues shall be distinguishable in each jurisdiction’s accounting records from other funding sources, and expenditures of Net Revenues shall be distinguishable by program or project. Interest earned on Net Revenues allocated pursuant to the Ordinance shall be expended only for those purposes for which the Net Revenues were allocated.
C. No Net Revenues shall be used by a jurisdiction for other than transportation purposes authorized by the Ordinance. Any jurisdiction which violates this provision must fully reimburse the Authority for the Net Revenues misspent and shall be deemed ineligible to receive Net Revenues for a period of five (5) years.
D. A Citizens Oversight Committee (“Committee”) shall be established to provide an enhanced level of accountability for expenditure of Revenues under the Ordinance.
The Committee will help to ensure that all voter mandates are carried out as required. The roles and responsibilities of the Committee, the selection process for Committee members and related administrative procedures shall be carried out as described in the Section XIII below and Ordinance Section 15.
E. A performance assessment shall be conducted at least once every five years to evaluate the efficiency, effectiveness, economy and program results of the Authority in satisfying the provisions and requirements of the Investment Summary February 5, 2026 SLO County Transportation Expenditure Plan 7 of the Plan, the Plan and the Ordinance. A copy of the performance assessment shall be provided to the Committee.
F. Annual status reports regarding the regional corridor projects and improvements shall be brought before the Authority by local agencies and Authority staff at least annually in public meetings.
G. Annual Report Annually the Authority shall publish a report on how all Revenues have been spent and on progress in implementing projects in the Plan and shall publicly report on the findings and posted on the agency website.
VIII. Ten-Year Comprehensive Program Review
At least every ten years the Authority shall conduct a comprehensive review of all projects and programs implemented under the Plan to evaluate the performance of the overall program and may revise the Plan to improve its performance. The review shall include consideration of changes to local, state and federal transportation plans and policies; changes in land use, travel and growth projections; changes in project cost estimates and revenue projections; right-of-way constraints and other project constraints; level of public support for the Plan; and the progress of the Authority and jurisdictions in implementing the Plan. The Authority may amend the Plan based on its comprehensive review, subject to the requirements of Section IX: Reporting, Implementation and Amendments.
IX. Reporting, Implementation and Amendments
Administration
In compliance with state and federal requirements, SLOCOG regularly prepares a Regional Transportation Plan (RTP) that identifies priority projects across all transportation modes, including highways, local roads, public transit, bikeways, and aviation.
All updates to the Expenditure Plan will undergo public review and hearings. Candidate projects and priorities may evolve, but the county’s extensive transportation needs will ensure robust use of all available funding, including sales tax revenues. During each update, the Authority will review investments across multiple transportation modes to ensure efficiency and equity in addressing mobility needs throughout San Luis Obispo County.
Annual Report
Each year, the Citizens’ Oversight Committee (Section XIV) reviews expenditures and communicates results to the public through an Annual Report.
February 5, 2026 SLO County Transportation Expenditure Plan 8 Amendment Process
As specified in PUC Section 180207:
(a) Once per calendar year, the Authority may review and propose amendments to the county’s transportation expenditure plan to incorporate additional revenues, account for unanticipated funds, or respond to unforeseen circumstances.
Amendments adopted late in the year will not preclude additional amendments in the following year.
(b) The Authority must notify the County Board of Supervisors and each city council, providing copies of proposed amendments for their review. (c) Amendments become effective 45 days after notification.
Voter approval (2/3 majority) is required for changes to funding categories or overall allocation formulas as per Ordinance Section 10.
Biennial Implementation Plan
At least once every two years, the Authority will prepare and adopt a Measure TBD Implementation Plan. This plan will include a financial component consistent with both the SLOCOG Regional Transportation Improvement Program (RTIP) and the STIP.
Process steps include:
A. SLOCOG staff, working with member agencies and stakeholders, will draft and update the Implementation Plan biennially.
B. The Authority Board will review the Draft Implementation Plan, hold public hearings, and incorporate feedback.
C. Following review, the Authority formally adopts the Implementation Plan.
Implementation Guidelines
Following voter approval of this Measure, the Authority shall adopt Implementation Guidelines to administer and implement the Expenditure Plan in a manner consistent with the voter-approved purposes of this Measure. The Implementation Guidelines shall establish procedures for project programming and delivery, eligibility requirements, fund distribution, accountability and reporting, audits, amendments, and other administrative matters necessary to ensure effective and transparent use of Measure revenues. The Implementation Guidelines shall not expand or alter the uses of funds authorized by this Measure and shall be adopted by the governing board at a public meeting following a noticed public process.
February 5, 2026 SLO County Transportation Expenditure Plan 9 X. Bonding Authority
To reduce overall costs by advancing construction timelines, the Authority shall have the option to sell or issue, at any time, and from time to time, including on or before the collection of the taxes authorized by the Ordinance Section 16, bonds, notes or other evidences of indebtedness, including capital appreciation bonds, payable from and secured by the proceeds from the sales taxes authorized by this Ordinance and from the proceeds of the existing Measure TBD sales taxes, in order to finance and refinance the transportation projects identified in the Transportation Expenditure Plan. Bonding indebtedness shall be limited to 35% of net sales measured at the end of the 30-year program. An additional bonds test (ABT) no lower than 1.5x Maximum Annual Debt Service will be measured against projected revenues for any consecutive 12-month period in the prior 18 months.
Should the tax be ended by voter action, the obligation to repay the bond debt remains with the agency, in this case the Authority and its member agencies.
XI. Independent Financial Audits
If the Transportation Measure is approved by the voters, the Authority will conduct independent financial audits of all revenues and expenditures associated with the measure in accordance with Public Utilities Code 180000 et seq. These audits will ensure full transparency and accountability in the use of voter-approved sales tax revenues.
The results of the audits will be presented annually to the Authority Board and made available to the public, reinforcing confidence in the administration of the Transportation Measure. Findings will also be shared with the Citizens’ Oversight Committee to support their independent review of expenditures and compliance with the Expenditure Plan.
XII. Administration Program – 1% of Measure Revenues
To effectively manage and implement the Transportation Measure, the Authority will cap administration costs at no more than 1% of annual sales tax revenues to administrative activities. This allocation supports the necessary planning, oversight, and program development functions required for successful execution of the measure.
Key administrative responsibilities of the Authority include:
A. Annual Work Program and Budget
Prepare and adopt an annual work program and budget outlining planned expenditures, oversight activities, and administrative costs.
February 5, 2026 SLO County Transportation Expenditure Plan 10 B. Allocation Program Requirements and Focused Studies
Develop requirements for each funding program established by the Regional Programs allowed in the Expenditure Plan and undertake specialized studies needed to implement those programs effectively.
C. Biennial Implementation Plan
Prepare and update the Transportation Measure Implementation Plan every two years, aligning it with the Regional Transportation Improvement Program (RTIP) and State Transportation Improvement Program (STIP).
D. Regional Project Prioritization
Establish and update priority lists for regional projects and rehabilitation projects, in coordination with member jurisdictions and consistent with Expenditure Plan goals.
E. Independent Annual Audit
Conduct an independent audit of all Transportation Measure funds to ensure compliance, fiscal integrity, and accountability to the public.
F. Public Outreach and Communication
Carry out ongoing outreach and public education efforts to keep residents informed about project progress, financial performance, and planned updates.
G. Bond Issuance for Accelerated Delivery
Issue bonds when appropriate to expedite project delivery, reducing overall project costs by leveraging future revenues for near-term improvements.
H. Revenue Allocation to Local Jurisdictions
Distribute Transportation Measure proceeds to incorporated cities and the county in accordance with the formulas and criteria established in the Expenditure Plan.
I. Support for Oversight Committees and Related Technical Assistance Provide staff support to advisory committees and furnish technical assistance to member jurisdictions to ensure consistent, equitable, and effective program implementation.
XIII. Citizens’ Oversight Committee
Committee Purpose
A. To provide fiscal oversight on the implementation of the Transportation Expenditure Plan ensuring that funds are spent in accordance with the approved Plan.
B. To inform the public and confirm that revenues and expenditures from the Transportation Measure are spent as promised to San Luis Obispo County voters.
February 5, 2026 SLO County Transportation Expenditure Plan 11 Committee Formation
A. The Committee will be formed within six (6) months following voter approval of the Transportation Measure in San Luis Obispo County.
B. The Committee shall be a permanent component of the Expenditure Plan and cannot be eliminated by amendment.
C. Meetings will begin when Transportation Measure revenues are recommended for expenditure, including Implementation Plan updates.
Selection and Duties of Committee Chair and Vice Chair
A. The Committee will select a Chair and Vice Chair from among its members, each serving a one-year term.
B. Chair Duties: Call meetings, set agendas, and preside over meetings.
C. Vice Chair Duties: Perform the Chair’s duties in the Chair’s absence.
Committee Meetings
A. The Committee will hold at least two formal meetings annually, with additional meetings scheduled as needed.
B. All meetings will comply with the Brown Act (open meeting requirements).
C. Meetings will be conducted in accordance with Robert’s Rules of Order.
Subcommittee Requirements
A. The Committee may form subcommittees to address specific tasks or focus areas.
B. All subcommittees will consist of an odd number of members to ensure clear decision-making.
The Committee will reflect the geographic and demographic diversity of San Luis Obispo County and consist of 12 members. Each represented organization will nominate its representative, with final appointments approved by the Authority Board.
Membership Composition:
A. One resident representative appointed by each incorporated city (Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, San Luis Obispo) and one member from each of San Luis Obispo County’s Supervisorial District’s within the unincorporated areas.
February 5, 2026 SLO County Transportation Expenditure Plan 12 B. The Authority Board will review and appoint these members. If any jurisdiction is unable to appoint a representative, THE AUTHORITY may fill the position through an open application process. Should a new City become incorporated, a representative from that jurisdiction shall be appointed by the City.
Quorum
A. A quorum will consist of no fewer than seven (7) members.
B. Actions may be approved by a simple majority of members present, provided the quorum is met.
Term of Membership
A. Members serve two-year terms, with a maximum of eight consecutive years of service.
B. To establish staggered terms, the initial appointments will be divided so that half serve one-year terms and half serve two-year terms, determined by random selection.
C. Proxy voting is not permitted.
Eligibility
A. Must be a U.S. citizen, 18 years or older, and a resident of San Luis Obispo County.
B. Cannot be an elected official of San Luis Obispo County or its cities.
C. Cannot be an employee of state, county, or city government agencies within San Luis Obispo County (except employees of educational institutions).
Staffing
A. SLOCOG staff will provide technical and administrative support, including preparation of agendas, meeting materials, and public communications.
B. Administrative costs for staffing will be funded through the Transportation Measure’s administrative allocation.
C. Expert staff and consultants may be invited to present information or analyses as needed.
Responsibilities
A. Reviewing and commenting on independent financial and performance audits of Measure funds.
February 5, 2026 SLO County Transportation Expenditure Plan 13 B. Reviewing periodic reports, studies, and plans related to Measure revenues and expenditures.
C. Ensuring that expenditures are consistent with the Expenditure Plan.
D. Conducting an annual review of sales tax revenue use and publicly reporting findings.
E. Presenting recommendations and findings in a formal annual report to the public and Authority Board.
F. Accessing information from the Authority’s independent auditor and requesting additional information as necessary to fulfill oversight responsibilities.
G. Remaining informed of advancements in transportation planning and finance to ensure oversight remains relevant and effective through the duration of the Measure.
XIV. Measure Duration
This Transportation Expenditure Plan shall remain in effect for 30 years as approved by San Luis Obispo County voters.