Resolution No. 41-25
19 thru 20 19
21 or more 20
Vacation leave time must be taken off on an hour-for-hour basis equaling employee actual time off, regardless of accumulation rates.
Management employees are subject to a maximum leave accumulation of three hundred (300) hours. Any hours exceeding the maximum accumulation as of November 1st of each year will be paid out in the pay period including December 1
st
.
Management employees will be provided an option to convert up to 40 hours of vacation into compensation per calendar year, subject to meeting the following requirements, provided that at the time of the conversion request at least 20 hours of vacation time remains in the employee's vacation bank. To be eligible for cash out of accrued vacation leave, an employee must pre-elect the number of vacation hours they will cash out, up to a maximum of 40 hours, by December 15 of the preceding calendar year. The election will apply only to vacation hours accrued in the next calendar year. The election to cash out vacation hours in each designated year is irrevocable. Management employees who elect to cash out vacation leave hours must cash out the number of accrued hours pre-designated on the irrevocable election form provided by the City. Employees who pre-designate cash out amounts may request a cash out at any time in the designated calendar year by submitting a cash out request at least 30 days in advance to Human Resources. Human Resources will confirm the cash out amount has accrued and is consistent with the amount the employee pre-designated, then forward to payroll to complete the cash out request. If the full amount of hours designated for cash out is not available at the time of cash out request, the maximum available will be paid.
For Management employees who have not requested payment of the elected cash out amount by November 1 of each year, payroll will automatically cash out the pre-designated amount in a paycheck issued on or after the payroll date including November 1. Additionally, the City may, prior to the end of the calendar year, automatically cash out the vacation leave accrued each pay period by an employee such that the vacation leave cash out is consistent with the employee’s pre-elected number of vacation leave cash-out hours for that year.
Employees who do not pre-designate vacation leave cash-out hours or who decline the cash opt option by the December 15 deadline will be deemed to have waived the right and will not be eligible to cash out any vacation leave in that year.
Resolution No. 41-25
Vacation accrual is a compensable leave, and any hours remaining in the employee’s vacation bank will be paid out upon separation from City service, at the employee’s current hourly rate of pay.
F. HOLIDAYS
The following days are paid holidays for management employees:
New Year's Day January 1st
Martin Luther King, Jr. Day 3
rd Monday in January
Spring Break Holiday Observed the Friday before Easter weekend Washington's Birthday 3
rd Monday in February
Memorial Day Last Monday in May
Juneteenth June 19th
Independence Day July 4th
Labor Day 1st Monday in September
Veteran's Day November 11th
Thanksgiving Day 4
th Thursday in November
Day after Thanksgiving Friday after Thanksgiving
Christmas Day December 25th
Floating Holiday Varies
Floating Holiday Varies
Any holiday, which falls on a Saturday or Sunday, will be officially designated as a “HOLIDAY” on the prior Friday (if Saturday) or Monday (if Sunday).
For management employees, one holiday equals eight hours, unless the employee is working the 9/80 alternative work schedule where one holiday may equal eight or nine hours depending on the normally scheduled workday being either an eight- or nine-hour work day for that employee.
Floating holiday hours are recorded in a bank in July of each fiscal year and may be carried over to the next fiscal year, to a maximum accumulation of fortyeight (48) hours of holiday time. Hours of holiday time accumulated over fortyeight (48) hours will be paid out in December. All leave time (vacation, sick leave, holiday, etc.) will be taken off on an hour-for-hour basis equaling employee actual time off from work during normal business hours, regardless of accumulation rates.
Floating holiday pay is a compensable leave, and any remaining hours in the employee’s bank will be paid out upon separation from City service, at the employee’s current hourly rate of pay.
G. SICK LEAVE
All employees accrue ninety-six (96) hours per year in a sick leave bank to be used for employee illness, forty-eight (48) hours of which may be used to care for the employee’s family member for illness or any other reason mandated by law. All leave time (vacation, sick leave, holiday, etc.) will be taken off on an
Resolution No. 41-25
hour-for-hour basis, equaling employee actual time off from work during normal business hours, regardless of accumulation rates.
Upon retirement from City service, remaining unused sick leave converts to time served under the applicable contract between the City and the California Public Employees' Retirement System (“CalPERS”), if any. Sick leave converted to service credit for CalPERS purposes cannot be compensated (converted to dollars).
Based on individual utilization of paid sick leave in the preceding calendar year, management employees may convert unused accumulated sick leave into paid vacation leave once per calendar year, pursuant to the formula below:
Sick Leave
Utilization
Sick Leave
Maximum
Conversion to
Vacation Leave
0 hours 96 hours 48 hours
.25 to 8 hours 72 hours 36 hours
8.25 to 16 hours 48 hours 24 hours
16.25 to 25 hours 24 hours 12 hours
Over 25 hours 0 hours 0 hours
At least one-hundred sixty (160) accrued hours must remain in the management employee’s sick leave bank for an employee to be eligible for conversion or for a conversion to be authorized. In addition, the right to convert does not carry over or rollover from calendar year to calendar year; failure to request conversion in any calendar year eliminates the right to do so for that calendar year.
Upon the Service Retirement of a management employee, who has more than ten years of service with the City, said employee shall be entitled to receive payment for up to the first seven hundred twenty hours of their accrued sick leave at thirty-five percent of the employee's rate of pay, as of the date of service retirement. Service Retirement is defined as service retirement from both the City and CalPERS. Voluntary separation or termination actions are excluded from this benefit.
H. RETIREMENT BENEFITS
All employees, enrolled in the CalPERS retirement system, bear the risk of payment of any increases in the employee contribution, above the current percentage, made by action of CalPERS, the California Public Employees Pension Reform Act of 2013 (“PEPRA”) or related legislation, and/or the State Legislature.
Resolution No. 41-25
All employee CalPERS contributions are paid to CalPERS, based upon tax treatment currently permitted by the State Franchise Tax Board and the Internal Revenue Service (“IRS”).
The following is descriptive information on City CalPERS-contracted retirement plans:
CalPERS Miscellaneous Plans
All employees pay 100% of the employee contribution to CalPERS, which is currently:
1. Tier 1 Classic members = 8%
2. Tier 2 Classic members = 7%
3. Tier 3 PEPRA members = one-half the normal cost of retirement (currently 6.75%)
Tier 1: All employees, who were hired prior to December 10, 2011, receive the following CalPERS retirement formula and optional benefits (existing Tier 1 employees, promoted to another position within the City, will not be considered new hires, with respect to retirement formulas):
1. 2.7% @ 55 formula (Section 21354.5)
2. Unused Sick Leave Credit (Section 20965)
3. Military Service Credit (Section 21024 & 21027)
4. Final Compensation 1 Year (Section 20042)
5. 1959 Survivor Benefit, Level 4 (Section 21574)
6. Pre-Retirement Option 2W Death Benefit (Section 21548) Tier 2: All employees who were hired on or after December 10, 2011, but before January 1, 2013, and those hired on or after January 1, 2013, who meet the CalPERS definition of classic member, as determined by CalPERS under PEPRA and related legislation, receive the following CalPERS retirement formula and optional benefits:
1. 2% @ 60 formula (benefit factor increases to 2.418% @ 63+) (Section 21353)
2. Unused Sick Leave Credit (Section 20965)
3. Military Service Credit (Section 21024 & 21027)
4. Final Compensation 3 Years (Section 20037)
5. 1959 Survivor Benefit, Level 4 (Section 21574)
6. Pre-Retirement Option 2W Death Benefit (Section 21548) Tier 3: All employees, who were hired on or after January 1, 2013, and meet the definition of new member, as determined by CalPERS under PEPRA and related legislation, receive the following CalPERS retirement formula and optional benefits:
Resolution No. 41-25
1. 2% @ 62 formula (benefit factor increases to 2.5% @ 67+) (Section 7522.20)
2. Final Compensation 3 Years (Section 20037)
3. Member contribution rate of fifty percent of the expected normal cost rate, which is currently 13.5% (6.75% is employee’s portion)
4. Unused Sick Leave Credit (Section 20965)
5. Military Service Credit (Section 21024 and 21027)
6. 1959 Survivor Benefit, Level 4 (21574)
7. Pre-Retirement Option 2W Death Benefit (Section 21548) CalPERS Safety Plans
All employees pay 100% of the employee contribution to CalPERS, which is currently:
1. Tier 1 and Tier 2 Classic members = 9%
2. Tier 3 PEPRA members = 13.0% (50% of the normal contribution rate) Tier 1: All employees, who were hired prior to September 17, 2011, receive the following CalPERS retirement formula and optional benefits (existing Tier 1 employees, promoted to another position within the City, will not be considered new hires, with respect to retirement formulas):
1. 3% @ 50 formula (Section 21362.2)
2. Unused Sick Leave Credit (Section 20965)
3. Military Service Credit (Section 21024 & 21027)
4. Final Compensation 1 Year (Section 20042)
5. 1959 Survivor Benefit, Level 4 (Section 21574)
6. Pre-Retirement Option 2W Death Benefit (Section 21548) Tier 2: All employees, who were hired on or after September 17, 2011, but before January 1, 2013, and those hired on or after January 1, 2013, who meet the definition of classic member, as determined by CalPERS under PEPRA and related legislation, receive the following CalPERS retirement formula and optional benefits:
1. 3% @ 55 formula (Section 21363.1)
2. Unused Sick Leave Credit (Section 20965)
3. Military Service Credit (Section 21024 & 21027)
4. Final Compensation 3 Years (Section 20037)
5. 1959 Survivor Benefit, Level 4 (Section 21574)
6. Pre-Retirement Option 2W Death Benefit (Section 21548) Tier 3: All employees, who were hired on or after January 1, 2013, and meet the definition of new member, as determined by CalPERS under PEPRA and
Resolution No. 41-25
related legislation, receive the following CalPERS retirement formula and optional benefits:
1. 2.7% @ 57 formula
2. Final Compensation 3 Years (Section 20037)
3. Member contribution rate of fifty percent of the expected normal cost rate, which is currently 26% (13.0% is employee’s portion)
4. Unused Sick Leave Credit (Section 20965)
5. Military Service Credit (Section 21024 and 21027)
6. 1959 Survivor Benefit, Level 4 (21574)
7. Pre-Retirement Option 2W Death Benefit (Section 21548) Employee Cost Sharing: CalPERS Classic Member Tier 1 & 2 employees shall make a 1% cost sharing contribution to the employer’s contribution to CalPERS effective the first full payroll period after City Council approval of a CalPERS Contract Amendment providing for such payment commencing FY 23/24, but in no event sooner than the pay period including July 1, 2023.
I. HEALTH/LIFE/VISION/DENTAL INSURANCE
All employees receive the following contribution toward the purchase of CalPERS health insurance, which includes the required CalPERS monthly contribution:
City will pay an amount equal to 100% of Employee-only premium, 90% of Employee + one premium, and 89% of Employee + two or more (family coverage) premium for the lowest-cost PPO plan offered by CalPERS.
For calendar years 2024 and 2025, the City will contribute 100% of the dental and vision premiums for Employees and their dependents.
The city will pay up to a 5% increase in premiums for the calendar year 2026 and up to a 5% increase for the calendar year 2027 through the end of the 2027 calendar year. Employees will pay for any increase beyond 5%.
Life insurance is provided at $50,000 per employee.
For retired employees, City contributes the required CalPERS monthly contribution towards CalPERS health plans, as selected by retiree.
J. LONG-TERM DISABILITY (“LTD”) INSURANCE PROGRAM
Management employees do not participate in the California State Disability Insurance program. City provides LTD to its management employees and pays the cost for the plan.
K. DEFERRED COMPENSATION PROGRAM
Resolution No. 41-25
Management employees receive a matching contribution up to $1,500, per calendar year, paid to employee’s deferred compensation plan, or approved retiree medical savings plan. City matching contributions are paid on a 2:1 basis (e.g., employee contributes $2, City contributes $1).
L. LONGEVITY INCENTIVE
Once annually, for employees who have been continuously employed with City for ten (10) years of full-time employment, City shall contribute to the employee's deferred compensation plan (Section 457 account) $25 per year for each whole year of continuous full-time employment with City, plus an additional $25 per year for each whole year of continuous full-time employment completed after ten (10) years.
For example:
If an employee has been employed full-time with the City for 10 years, the City will contribute $250 that year ($25 for each year of continuous full-time employment).
If an employee has been employed full-time with the City for 14 years, the City will contribute $350 that year ($25 for each year of continuous full-time employment).
Whole years of full-time employment shall be determined on September 1st of each year.
Fractions of a year will be rounded down to the nearest whole year.
Deposits into the deferred compensation plan shall be made in one lump sum no later than the second pay period in September.
M. SPECIAL PAY
Management employees may receive up to $150 reimbursement per fiscal year, to purchase steel-toed shoes, as required in the performance of their job duties. Proof of purchase is required, and reimbursement is based on price paid, not to exceed $150 per fiscal year. Once purchased, footwear must be worn while working.
N. COMPENSATION ADJUSTMENTS
Annual Cost of Living Adjustments (COLA) and/or equity adjustments may be given to management employees, as recommended by the City Manager and approved by the City Council, though neither is guaranteed.
1. Effective the pay period including July 1, 2024, City shall provide a 5% COLA increase to base salaries for all management employees (see Exhibit A updated salary table).
Resolution No. 41-25
2. Effective the pay period including July 1, 2025, City shall provide a 5% COLA increase to base salaries for all management employees (see Exhibit B updated salary table).
3. Effective the pay period including July 1, 2026, the City shall provide a 5% COLA increase to base salaries for all management employees (see Exhibit C updated salary table).
4. Effective the pay period including July 1, 2024, in addition to the COLA above, City shall provide a 3% Equity Adjustment increase to base salaries for the Chief Building/Plans Examiner, City Clerk, Information Technology Manager, Recreation Services Manager, Planning Manager, Human Resources/Risk Manager, Accounting Manager, Senior Civil Engineer, Deputy Chief/Fire Marshal, and Police Commander.
5. Effective the pay period including July 1, 2025, in addition to the COLA above, City shall provide a 2% Equity Adjustment increase to base salaries for the Chief Building/Plans Examiner, City Clerk, Information Technology Manager, Recreation Services Manager, Planning Manager, Human Resources/Risk Manager, Accounting Manager, Senior Civil Engineer, Utilities Project Manager, and Police Commander, and a 1% Equity Adjustment increase to the base salary for the Deputy Chief/Fire Marshal.
6. Effective the pay period including July 1, 2026, in addition to the COLA above, City shall provide a 2% Equity Adjustment increase to base salaries for the Chief Building/Plans Examiner, City Clerk, Information Technology Manager, Recreation Services Manager, Planning Manager, Human Resources/Risk Manager, Accounting Manager, Senior Civil Engineer, Utilities Project Manager, and Police Commander, and a 1% Equity Adjustment increase to the base salary for the Deputy Chief/Fire Marshal.
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Resolution No. 41-25
O. EDUCATION REIMBURSEMENT
City will reimburse its management employees for costs associated with jobrelated and job-required certifications, correspondence courses, and/or licenses (except Class III driver’s license), upon successful completion of the examination or course by the employee. Written authorization, from the employee’s Department Director, is required in advance. Reimbursement includes application fees, examination fees, and certificate fees. Renewal fees may be paid in advance by City. This provision does not apply to continuing education requirements.
City will provide a City vehicle, when available, for required transportation, and will permit paid time for employee to take examinations, scheduled during normal working hours. If no City vehicle is available, then City will reimburse mileage for the use of the management employee’s personal vehicle, at current IRS mileage rates.
PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 24th day of June 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSE:
______________________________________
CARLA WIXOM, Mayor
ATTEST:
______________________________
DANA SWANSON, City Clerk
Resolution No. 41-25
ATTACHMENT A
MANAGEMENT PAY SCHEDULE
EFFECTIVE April 22, 2025
ANNUAL SALARY
POSITION STEP 1 STEP 2 STEP 3 STEP 4 STEP 5
MANAGEMENT ANALYST
81,619
85,696
89,981
94,474
99,195
POLICE SUPPORT SERVICES MANAGER
95,451 100,214 105,227 110,490 116,022
HARBOR BUSINESS MANAGER
95,451 100,214 105,227 110,490 116,022
MAINTENANCE DIVISION MANAGER
95,451 100,214 105,227 110,490 116,022
ADMINISTRATIVE PROGRAMS MANAGER
95,451 100,214 105,227 110,490 116,022
ASSISTANT TO THE CITY MANAGER/PUBLIC
RELATIONS MANAGER
95,451 100,214 105,227 110,490 116,022
SENIOR PLANNER
95,451 100,214 105,227 110,490 116,022
CHIEF BUILDING INSP/PLANS EXAMINER
98,176
103,085
108,222 113,651 119,330
CITY CLERK
98,176
103,085
108,222 113,651 119,330
INFORMATION TECHNOLOGY MANAGER
98,176
103,085
108,222 113,651 119,330
RECREATION SERVICES MANAGER
98,176
103,085
108,222 113,651 119,330
PLANNING MANAGER
107,994 113,402 119,059
125,008 131,248
HUMAN RESOURCES/RISK MANAGER
107,994 113,402 119,059
125,008 131,248
ACCOUNTING MANAGER
107,994 113,402 119,059
125,008 131,248
SENIOR CIVIL ENGINEER
107,994 113,402 119,059
125,008 131,248
CITY ENGINEER
123,739 129,917
136,406
143,250
150,405
UTILITY DIVISION MANAGER
123,739 129,917
136,406
143,250
150,405
DEPUTY CHIEF / FIRE MARSHAL 131,186 137,758
144,622 151,861 159,453
POLICE COMMANDER
142,896
150,030 157,539
165,402 173,701
Resolution No. 41-25
ATTACHMENT B
MANAGEMENT PAY SCHEDULE
EFFECTIVE JULY 1, 2025
ANNUAL SALARY
POSITION STEP 1 STEP 2 STEP 3 STEP 4 STEP 5
MANAGEMENT ANALYST
85,696 89,981 94,474 99,195 104,146
POLICE SUPPORT SERVICES MANAGER
100,214
105,227
110,490
116,022
121,826
HARBOR BUSINESS MANAGER
100,214
105,227
110,490
116,022
121,826
MAINTENANCE DIVISION MANAGER
100,214
105,227
110,490
116,022
121,826
ADMINISTRATIVE PROGRAMS MANAGER
100,214
105,227
110,490
116,022
121,826
ASSISTANT TO THE CITY MANAGER/PUBLIC
RELATIONS MANAGER
100,214
105,227
110,490
116,022
121,826
SENIOR PLANNER
100,214
105,227
110,490
116,022
121,826
CHIEF BUILDING INSP/PLANS EXAMINER
105,040
110,302
115,794
121,597
127,691
CITY CLERK
105,040
110,302
115,794
121,597
127,691
INFORMATION TECHNOLOGY MANAGER
105,040
110,302
115,794
121,597
127,691
RECREATION SERVICES MANAGER
105,040
110,302
115,794
121,597
127,691
PLANNING MANAGER
115,544
121,347
127,400
133,765
140,442
HUMAN RESOURCES/RISK MANAGER
115,544
121,347
127,400
133,765
140,442
ACCOUNTING MANAGER
115,544
121,347
127,400
133,765
140,442
SENIOR CIVIL ENGINEER
115,544
121,347
127,400
133,765
140,442
UTILITIES PROJECT MANAGER
115,544
121,347
127,400
133,765
140,442
CITY ENGINEER
129,917
136,406
143,229
150,405
157,934
UTILITY DIVISION MANAGER
129,917
136,406
143,229
150,405
157,934
DEPUTY CHIEF / FIRE MARSHAL
139,048
146,016
153,296
160,971
169,021
POLICE COMMANDER
152,901
160,534
168,563
176,987
185,869
Resolution No. 41-25
ATTACHMENT C
MANAGEMENT PAY SCHEDULE
EFFECTIVE JULY 1, 2026
ANNUAL SALARY
POSITION STEP 1 STEP 2 STEP 3 STEP 4 STEP 5
MANAGEMENT ANALYST
89,981 94,474 99,195 104,146 109,346
POLICE SUPPORT SERVICES MANAGER
105,227
110,490
116,022
121,826
127,920
HARBOR BUSINESS MANAGER
105,227
110,490
116,022
121,826
127,920
MAINTENANCE DIVISION MANAGER
105,227
110,490
116,022
121,826
127,920
ADMINISTRATIVE PROGRAMS MANAGER
105,227
110,490
116,022
121,826
127,920
ASSISTANT TO THE CITY MANAGER/PUBLIC
RELATIONS MANAGER
105,227
110,490
116,022
121,826
127,920
SENIOR PLANNER
105,227
110,490
116,022
121,826
127,920
CHIEF BUILDING INSP/PLANS EXAMINER
112,403
118,019
123,906
130,104
136,635
CITY CLERK
112,403
118,019
123,906
130,104
136,635
INFORMATION TECHNOLOGY MANAGER
112,403
118,019
123,906
130,104
136,635
RECREATION SERVICES MANAGER
112,403
118,019
123,906
130,104
136,635
PLANNING MANAGER
123,635
129,834
136,323
143,125
150,280
HUMAN RESOURCES/RISK MANAGER
123,635
129,834
136,323
143,125
150,280
ACCOUNTING MANAGER
123,635
129,834
136,323
143,125
150,280
SENIOR CIVIL ENGINEER
123,635
129,834
136,323
143,125
150,280
UTILITIES PROJECT MANAGER
123,635
129,834
136,323
143,125
150,280
CITY ENGINEER
136,406
143,229
150,384
157,934
165,838
UTILITY DIVISION MANAGER
136,406
143,229
150,384
157,934
165,838
DEPUTY CHIEF / FIRE MARSHAL
147,389
154,773
162,490
170,622
179,171
POLICE COMMANDER
163,613
171,766
180,357
189,384
198,890
RESOLUTION NO. 42-25
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF MORRO BAY, CALIFORNIA
RESCINDING RESOLUTION NO. 50-24, DESIGNATING AND AUTHORIZING
INVESTMENT TRANSACTION OFFICERS AND ESTABLISHING
INTERNAL CONTROL POLICY FOR INVESTMENT TRANSACTIONS
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay has cash in its possession that exceeds the amount needed for day-to-day transactions; and
WHEREAS, the City of Morro Bay has an obligation to its citizens to effectively and safely manage that money while optimizing its earning potential; and
WHEREAS, it is necessary to designate, via Resolution, the transaction officers who have the authority to invest the City’s funds; and
WHEREAS, on June 25, 2024, the Morro Bay City Council adopted Resolution No. 50-24, which established the transaction officers with the authority to invest the City’s funds; and WHEREAS, with this Resolution, the Morro Bay City Council is rescinding Resolution No. 50-24 in its entirety; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California:
1. Resolution No. 50-24, relating to designating and authorizing investment transaction officers is rescinded in its entirety and replaced with this Resolution.
2. The “Investment Policy” as set forth in Exhibit A, attached hereto and incorporated herein, is hereby approved and hereby established as City policy.
3. The individuals holding the City offices/positions listed below are designated as transaction officers who are authorized to open and close investment accounts within the scope of the City’s Investment Policy:
City Manager
Finance Director/Treasurer
Accounting/Finance Manager
Fiscal Analyst
4. For purposes of internal controls, the City will require written approval of one of the above designated authorized representatives, prior to another one of the designated authorized representatives initiating a deposit, withdrawing funds or making any other change in the account.
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5. Provision for socially responsible investing have been incorporated as previously adopted by the City Council.
PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 24
th day of June 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
______________________________________
CARLA WIXOM, Mayor
ATTEST:
____________________________
DANA SWANSON, City Clerk
EXHIBIT ''A''
CITY OF MORRO BAY
INVESTMENT POLICY
PURPOSE
This investment policy establishes the practices and procedures to be used in managing the City of Morro Bay's (City) portfolio in accordance with the requirements of the State of California Government Code and the guidelines provided by the California Debt and Investment Advisory Commission (CDIAC) and the Government Finance Officers Association (GFOA).
SCOPE OF THE POLICY
This policy governs the investment of money that is not required to meet the immediate needs of the City.
LEGAL AUTHORITY
Government Code Sections: California Government Code Sections 53600 to 53609, 53635, and 16429.1 govern the investment of local agency funds.
Legislative Changes: Any applicable legislative actions will be acted on as of their effective dates and will be incorporated into the policy annually, specifying the California Government Code sections that have been added, deleted, or amended.
OBJECTIVES
The City Treasurer will consider the following factors in priority order when assessing investment opportunities:
Safety: The primary objective is the preservation of principal. Capital losses will be avoided, whether from default or erosion of market value, meaning that the City will not sell or trade an investment because of market fluctuation. The two types of risk to be minimized are:
1. Credit risk - the risk that an issuer or other counterparty to an investment will not fulfill its obligations; and
2. Interest rate or market risk - the risk that changes in interest rates will adversely affect the fair value of an investment.
Liquidity: The second objective is the liquidity of the portfolio. The portfolio should remain sufficiently flexible to enable the City to meet the operating requirements that are reasonably anticipated. To ensure liquidity, the investment policy must recognize that calculating cash flows are the basis of any good investment strategy. Meeting the daily cash flow demand goes hand-in-hand with meeting the City's liquidity needs.
Yield: The third objective, behind safety and liquidity, is attaining a market rate of return throughout the budgetary and economic cycles.
While managing the portfolio, the Treasurer, and designated staff, will strive to maintain public trust by avoiding any transactions that might impair public confidence in the City. When selecting investment instruments, the Treasurer, and designated staff, will remain cognizant of any social and policy considerations that have been established and defined in this policy.
GENERAL STRATEGY
The Treasurer, and designated staff, may follow a passive or active investment strategy. Passive investment policies adhere to the investment goal of holding investments to maturity. Active investment strategy is the buying and selling of investments to achieve a certain benchmark objective. Great care, coupled with the advice of a fiscal agent, should be followed with an active investment policy.
The City follows the passive investment strategy of holding investments to maturity.
STANDARD OF CARE
Prudent Investor Standard: The prudence standard for trust investing traces back to Harvard College v. Amory, 26 Mass. (9 Pick.) 446 (1830). Judge Samuel Putnam stated that trustees should ''observe how men of prudence, discretion and intelligence manage their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income, as well as the probable safety, of the capital to be invested."
This standard will be followed by the Treasurer, and designated staff.
Ethics and Conflict of Interest: The Treasurer, and designated staff, shall refrain from personal business activities that could conflict with the proper execution of the investment program or which could impair their ability to make impartial decisions.
Delegation of Authority: The following positions and corresponding City personnel are delegated the power to invest the funds of the City:
City Manager
Finance Director/Treasurer
Accounting/Finance Manager
Fiscal Analyst
These designations may change with the annual affirmation of this policy. Each delegate must adhere to the requirements set forth in the investment policy.
SAFEKEEPING AND CUSTODY
Third-party Safekeeping: Ownership of the City's investment securities will be protected through third-party custodial safekeeping. The custodian will provide the City with a safekeeping receipt or monthly, itemized statement. Exceptions to this requirement are made for certificates of deposit, money market funds and investment pools.
Internal Controls: These are designed to ensure that the assets of the City are protected from theft, loss, or misuse. Such internal controls that are in place include:
1. Control of collusion;
2. Separation of duties;
3. Safekeeping of securities; and
4. Written confirmation of telephone transactions and wire transfers.
The City will separate the person who authorizes or performs the transaction from the person or people who ultimately record or otherwise account for the transaction to achieve separation of duties. Moreover, the City will require written approval of one of the above designated authorized representatives who is not also recording the transaction, prior to another one of the designated authorized representatives initiating a deposit, withdrawing funds, or making any other change in the account. •
Delivery vs. Payment: All investment transactions should be conducted using standard delivery vs. payment procedures. In delivery vs. payment, the purchaser pays for the securities when they are delivered either to the purchaser or his/her custodian and ensures that securities are deposited in an eligible financial institution prior to the release of funds.
AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The City will only conduct business with approved banks, savings and loans, credit unions, and securities brokers/dealers. A list of financial dealers and institutions is to be maintained. Broker/dealers and institutions must meet all requirements established by federal and state law.
SUITABLE AND AUTHORIZED INVESTMENTS
Authorized Investment Types: The City, by virtue of California Government Code Sections 53600 - 09, has the ability to invest in numerous types of instruments. The City has looked at its goals, objectives, and standards of care in establishing a list of authorized investment types that also meet statutory requirements.
Those types of investment instruments that meet the criteria for the City are:
1. Securities of the U. S. Government, or its agencies;
2. California's Local Agency Investment Fund (LAIF) pool;
3. FDIC Insured Certificates of Deposit up to $250,000;
4. Bankers' Acceptances (not exceeding 40% of the City's portfolio/max maturity 180 days);
5. Money Market funds;
6. Collateralized deposits;
7. Passbook savings accounts; and
8. Repurchase agreements and reverse repurchase agreements (no more than 25% of the City's portfolio).
Prohibited Investment Types: In addition to a listing of authorized investments, California Government Code Section 53601.6 prohibits local agencies from investing in the following instruments:
1. inverse floaters;
2. range notes or mortgage-derived, interest-only strips;
3. any security that could result in zero interest accrual if held to maturity;
4. stock; and
5. futures or options.
There may be additional investment instruments in which the City does not want the Treasurer to invest, and those will be defined in future investment policies.
INVESTMENT PARAMETERS
Diversification of Investments: The City may choose to impose more stringent restrictions or further restrictions on other investment instruments, depending on its investment goals and risk tolerances, than those proposed in the California Government Code Sections 53600 - 09. The City has indicated those authorized investments as follows:
1. money market funds;
2. collateralized deposits;
3. securities of any one issuer, not to exceed 5% of the City's portfolio, except those obligations of the U.S. government, U.S. governmental agencies, and U.S. government-sponsored enterprises;
4. mutual funds; and
5. FDIC insured certificates of deposits.
Maximum Maturity: California Government Code Section 53601 lists the maximum maturity for any instrument as five (5) years. The exception to this time frame is made for investments with LAIF or collateralized deposits.
Minimum Credit Requirements: The City has chosen to follow the California Government Code Section 53601 that sets the minimum credit rating required for certain investment instruments as follows:
1. Short-term debt shall be rated at least ''A-1'' by Standard & Poor's Corporation, ''P-1'' by Moody's Investors Service, Inc., or ''F-1'' by Fitch Ratings. If the issuer of short-term debt has also issued long-term debt, this long-term debt rating shall be rated at least ''A," without regard to +/- or 1, 2, 3 modifiers, by Standard & Poor's Corporation, Moody's Investors Service, Inc., or Fitch Ratings.
2. Long-term debt shall be rated at least ''A," without regard to +/- or 1, 2, 3 modifiers, by Standard & Poor's Corporation, Moody's Investors Service, Inc., or Fitch Ratings.
Maximum Weighted Average Maturity of a Portfolio: As part of the quarterly portfolio performance report that is provided to the City Council, a weighted average maturity (WAM) of the portfolio is calculated.
While there are no requirements under state law for a maximum WAM of a portfolio, CDIAC's Local Agency Investment Guidelines suggest that local agencies include and monitor WAM to arrive at an acceptable range for future implementation of a maximum benchmark.
Social Responsibility: Priority will be given to investments that are in compliance with socially responsible goals, to the extent that such investments achieve equivalent safety, liquidity and yield compared to other investments that do not meet the City's socially responsible goals. When not impacting yield, safety and liquidity, priority will be given to investments that support community well-being through safe, environmentally sound, practices and fair labor practices. Investments are encouraged in entities that support combating climate change and equality of rights regardless of race, sex, religion, age, national or ethnic origin, sexual orientation, or disability.
PORTFOLIO MANAGEMENT ACTIVITY
Active or Passive Portfolio Management: In active portfolio management, treasurers buy and sell securities based on how to maximize portfolio values over a given timeframe. In passive portfolio management, the goal is to match a market rate of return (usually a benchmark). Weighing the pros and cons of each strategy in light of staff resources and investment, the City has chosen to follow a passive portfolio management strategy.
Competitive Bidding: Investments are purchased in the most cost effective and efficient manner utilizing approved brokers/dealers on all investment transactions.
Reviewing and Monitoring of the Portfolio: The portfolio requires monthly staff review to ensure the investments are being properly tracked and reported, and quarterly reporting to the Citizens Finance Advisory Committee.
Portfolio Adjustments: If the portfolio demonstrates non-compliance with the investment policy, the Treasurer, and designated staff, may hold the affected securities to maturity to avoid losses; however, the Treasurer may choose to rebalance the portfolio earlier to bring it back into compliance only if the portfolio will not suffer any losses for selling the investment p r i o r to maturity.
Performance Standards: The objective of investing is to obtain a rate of return throughout budgetary and economic cycles, commensurate with investment risk constraints and cash flow needs.
REPORTING
Reporting Methods: On a quarterly basis, the investment portfolio will be presented at a City Council meeting, along with the quarterly financial reports, and will list the following components:
1. types of investment;
2. issuer names;
3. dates of maturity;
4. par amounts;
5. dollar amounts;
6. market values;
7. descriptions of programs under the management of contracted parties;
8. a statement of compliance with the investment policy; and
9. a statement of the ability to meet cash flow needs for six months.
Governmental Accountings Standards Board (GASB) Statement No. 31 - Marking to Market: The City's portfolio is to be marked-to-market for the quarterly investment report provided to the City Council and at minimum, annually for the financial statements. Market values are to be obtained from a reputable and independent source and disclosed to the City Council in the quarterly written report. The independent source of pricing should not be one of the parties to the transaction being valued. Such an independent source could include a broker or other financial institution that was not counterparty to the transaction, the custodial bank if the bank was not a counterparty to the transaction, publicly available publications such as The Wall Street Journal, or other pricing services for which a separate fee would be paid.
This is consistent with GASB Statement No. 31, which requires that governmental entities report investments at fair value, and with the California Governmental Code, which also requires market values of investments be reported.
Calculation of Yield and Costs: All yield rates on investments will be presented at book value.
Investment Policy Adoption, Review, and Amendment: The investment policy will be reviewed, amended, and presented to the City Council annually with budget adoption. The review should· ensure that the policy is consistent with the overall objectives of preservation of principal, liquidity, and return, and is in conformance with the law, financial and economic trends, and the cash flow needs of the local agency.
Definitions or Glossary of Terms: This investment policy includes a definition section (Appendix A) in order to establish a common vocabulary between the Treasurer, and designated staff, the City Council, and the public.
APPENDIX A - INVESTMENT POLICY TERMINOLOGY
The following are examples of terminology commonly found in California City investment policies. The inclusion of these sections provides clarity to investment policies and better enables readers to understand important concepts.
Authorized Financial Dealers and Institutions: A list of financial institutions authorized to provide investment services. May also include a list of approved security broker/dealers with which the City can do business. These institutions and broker/dealers are usually selected by their ability to add value to the investment process. Some criteria to consider when choosing an approved broker/dealer include creditworthiness, expertise, and the products in which the financial dealer or institution is familiar. GFOA suggests that all entities qualifying for investment transactions provide audited financial statements; proof of industry group (National Association of Securities Dealers [NASO]) certification; proof of state registration; completed broker/dealer questionnaire; and certification of having read, understood, and agreeing to comply with the investment policy.
Bankers' Acceptance: A draft, bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.
Certificate of Deposit: A time deposit with a specific maturity evidenced by a certificate.
Collateralization: Process by which a borrower pledges securities, property, or other deposits for the purpose of securing the repayment of a loan and/or security. California Government Code Section 53601 requires that all repurchase agreements be secured by eligible securities with a market value of 102 percent or greater of the funds borrowed. California Government Code requires public deposits to be collateralized at 110%.
Delegation of Authority: The granting of authority to manage the investment program to designated officials.
Such authority is usually derived from code sections, ordinance, charters, or statutes. Government Code Section 53607, for example, allows the City Council to delegate, for a one-year period, its authority to invest or reinvest funds or to sell or exchange securities held by the local government.
Delivery vs. Payment: A type of securities transaction in which the purchaser pays for the securities when they are delivered either to the purchaser or his/her custodian. It ensures that securities are deposited in an eligible financial institution prior to the release of funds. A third-party custodian as evidenced by safekeeping receipts should hold securities.
Diversification: A process of investing assets among a range of security types by sector, maturity, credit rating, and call type or structure. This reduces exposure to risk by combining a variety of investments, which are unlikely to all move in the same direction. GFOA suggests diversifying a city's investment portfolio by limiting investments to avoid exposure to a specific sector, limiting investment in securities with higher credit risks, investing in instruments with varying maturities, and continuously investing a portion of the portfolio in readily available funds such as a local government investment pool, money market funds, or overnight repurchase agreements to ensure that appropriate liquidity is maintained in order to meet ongoing obligations.
Ethics and Conflicts of Interest: The California Political Reform Act of 1974 requires certain designated public officials at all levels of government to publicly disclose their private economic interests and requires all public officials to disqualify themselves from participating in decisions in which they have a financial interest.
As part of this requirement, local agencies are required to adopt and promulgate a Conflict- of - I n t e r e s t Code, with certain required sections. To further promulgate this Code, investment policies sometimes include language requiring the ethical conduct of investment officers and statements regarding refraining from personal business activity that could conflict with the proper execution and management of the investment program or that could impair their ability to make impartial decisions. To avoid conflicts, GFOA recommends that investment officers disclose material interests in financial institutions with which they do business, disclose personal financial interests that could be related to the performance of the investment portfolio, and refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the local government.
Exemption: Language that grandfathers prohibited investments into the investment policy because they may have been held in the portfolio prior to the prohibition. When these investments mature or are liquidated, the money should be reinvested as provided by the policy and the exemption language should be removed from the policy.
FDIC: Federal Deposit Insurance Corporation is a federal agency that insures bank deposits up to $250,000 per deposit.
General Objectives: The section of an investment policy that illustrates the three main objectives (safety, liquidity, and yield), in order of priority, of a good investment policy. In addition to these commonly included objectives, there are a myriad of other objectives for which an investment policy can strive. Safety is the preservation of principal. Liquidity is how easily an investment may be redeemed for cash. Yield is the current rate of return on a security generally expressed as a percentage of its current price. As per California Government Code Section 53600.5, safeguarding the principal of the funds under its control should be the primary objective of local agencies. Liquidity also should be a principal objective of a portfolio. The portfolio should maintain sufficient liquidity to meet operating requirements. To accomplish this, a local agency can structure a portfolio so that investments mature when cash is needed and also by investing in liquid securities with an active secondary market. Yield should be the last objective an investment portfolio should strive for, behind safety and liquidity. Since there are many different ways for yield to be calculated, the investment policy should specify how it is to be calculated.
Internal Controls: The system used to ensure that the local government assets are protected from loss, theft, or misuse. Such a system should provide a reasonable assurance that such loss, theft, or misuse can be prevented. Examples include separation of duties, delegation of authority, and documentation.
GFOA suggests that an internal control system address the following points: control of collusion, separation of transaction authority from accounting and recordkeeping, custodial safekeeping, avoidance of physical delivery of securities, clear delegation of authority to subordinate staff, written confirmation of transactions for investments and wire transfers, and development of a wire transfer agreement with the lead bank and third-party custodian.
Investment Parameters: Specified restrictions on investments to limit the amount of risk in a portfolio. These parameters may be specified in the California Government Code; however, the local agency may choose to further restrict investment options depending on its risk tolerance. Such parameters may include diversification of investment types, percentages, or dollar limits per issuer and setting maximum maturities.
Investment Types: A recitation of the investment types the local agency has been given authority in which to invest. This may be a list of securities allowable under California Government Code Section 53601 et seq., and may be further restricted by the agency itself. For a description of the allowable California local agency investment instruments, please see CDIAC's latest version of its Local Agency Investment Guidelines, available on its website at Local Agency Investment Guidelines 2025. GFOA recommends the investment in the following types of securities: U.S. government securities and agency obligations; highlyrated certificates of deposit, bankers' acceptances, commercial paper; investment-grade state and local government obligations; repurchase agreements securitized by the previously-mentioned securities; SECregulated, dollar-denominated money market mutual funds; and local government investment pools.
LAIF: Local Agency Investment Fund, the State of California's investment pool in which cities, counties and special districts may participate.
Liquidity: A liquid asset is one that can be quickly and easily converted into cash without loss in value.
Market Value: The price at which a security is trading at a point in time. Selling an investment at market value can result in a gain ($500,000 investment sold for $515,000 = $15,000 gain) or loss ($500,000 investment sold for $498,000 = $2,000 loss). Gains and losses are dependent on changes in the current rate of interest as compared to the interest rate of the investment that is being considered for sale.
Marking-to-Market: The act of recording the price or value of a security to reflect its current market value rather than its book value.
Maximum Maturities: Maturity is the date on which the security or obligation is redeemed by the issuer in exchange for cash. California law states that local governments cannot invest in instruments with terms remaining to maturity in excess of five years unless they receive express authority from their legislative bodies to do so. Local governments should attempt to match investment maturities with anticipated cash flow requirements. There is no requirement under California law for local governments to have a weighted average maturity (WAM) restriction for their portfolio, although CDIAC's Local Agency Investment Guidelines suggests that local agencies consider adopting a WAM restriction.
Performance Standards: The criteria by which a stated goal is measured. An investment portfolio's performance and risk exposure should be evaluated against appropriate benchmarks on a regular basis.
One standard that should be strived for should be a market rate of return in a given interest rate environment.
Policy Considerations: The local ordinances or other requirements that place restrictions on the policy.
Local governments should consider what should be exempted from the policy and also when, or under what circumstances, the policy should be amended.
Pooling of Funds: A statement in the investment policy that except for certain restricted or special funds, cash balances should be consolidated from all funds to maximize investment earnings.
Portfolio: The collection of investment instruments held.
Prudent Investor Standard: Legal maxim that all investments should be made with care, skill, prudence and diligence under the circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the professional management of their business affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.
Reporting: Presentation of evaluation data or other information to communicate processes, roles, and results. Investment policies should include reporting requirements such as methods of reporting investments, the standards against which investments should be reported, and the requirement for calculating market value.
Reporting Methods: Ways in which investment outcomes are reported including listing of instrument values, dollar value returns, percentage yields, etc. GFOA suggests that local governments prepare investment reports at least quarterly. In California, investment reports are no longer required to be submitted to legislative bodies. This requirement is now permissive. If a local government chooses to submit an investment report in accordance with California Government Code Section 53646 to their legislative bodies, they are still required to submit copies to CDIAC for the second and fourth quarter of every calendar year until January 1, 2007. GFOA goes on to list some suggested components of investment reports, including listing of securities, gains and losses, average weighted yield to maturity as compared to benchmarks, listing of investment by maturity date, and percentage of the total portfolio which each type of investment represents.
Repurchase Agreements: A repurchase agreement is a form of short-term borrowing for dealers in government securities, which are highly valued and thus considered a good source of collateral. The dealer sells the government securities to investors, usually on an overnight basis, and buys them back the following day. Investments in repurchase agreements may be made when the term of the agreement does not exceed one year.
Risk: Two of the most common risks associated with local government portfolio investing are credit risk and interest rate risk. Credit risk is the risk to an investor that an issuer will default in the timely payment of interest and/or principal on a security. Interest rate risk is the risk that the market value of securities in the portfolio will fall due to changes in general interest rates. Limiting investment to the safest types of securities, pre-qualifying financial institutions, broker/dealers, and others with which the local agency will do business, and diversifying the number of issuers in an investment portfolio can minimize credit risk. Interest rate risk can be minimized by structuring the portfolio so that investments mature at the same time that cash is required or investing operating funds in highly liquid, shorter-term securities (e.g., U.S.
Treasury bills or notes).
Safekeeping and Custody: Rules derived to ensure the safety of an investment and within whose control the investment resides. Some examples include third-party safekeeping, developing lists of authorized financial dealers and institutions, developing internal controls, and using a delivery vs. payment standard for transactions. Local agencies should consider requiring securities to be held by third-party custodians, evidenced by timely statements illustrating the balance held by these custodians.
Scope: The types of funds that the policy covers (e.g., operating funds, bond proceeds, etc.). In general, investment policies cover short-term operating funds. Longer-term funds such as retirement funds are covered by other policies. The investment of bond funds usually is governed by the bond documents such as the trust indenture.
Standards of Care: The degree of care that a reasonably prudent person would exercise in the investment of local agency funds.
RESOLUTION NO. 43-25
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA,
ESTABLISHING THE ANNUAL PROPOSITION 4
APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2025-26
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, Article XIIIB of the California Constitution restricts the appropriation of tax proceeds that the City receives in any given fiscal year; and WHEREAS, the City has calculated the FY 2025-26 appropriations limit, in accordance with the provisions of Article XIIIB of the California Constitution; and WHEREAS, in June 1990, the California voters approved Proposition 111, amending the Gann Initiative to provide local agencies with the option of using either the city or county population change percentage, whichever is greater. The City is calculating this limit using the San Luis Obispo County population change and the California Per Capita Personal Income, referred to as the Price Factor (outlined in Exhibit 3, attached hereto); and WHEREAS, the City has complied with Government Code 7910.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, to adopt Resolution No. 43-25, which accepts the calculation of the FY 2025- 26 appropriations limit, as prepared by the Morro Bay Finance Department, and establishes the FY 2025-26 appropriations limit at $37,744,894, based on the calculation detailed in Exhibits 1 and 2 attached hereto.
PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 24
th day of June 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
______________________________________
CARLA WIXOM, Mayor
ATTEST:
______________________________
DANA SWANSON, City Clerk
005 045 050
001 003 Unfunded Developer Gov't 051 052 250 260 201-206 280 282 302 303 430 General District Compensable Reimbursment Vehicle State Road Maint. Traffic SLESF LTF LTF Risk Fund Trans Tax Leave Agreements Replacement GFER GF Fac Maint Gas Tax & Rehab SB1 CDBG Safety COPS Bikepaths Roads Management Property taxes 5,958,944 - - - - - - - - - - - - -
Intergovernmental Revenues 579,490 - - - - - - 311,517 266,556 - - 150,000 11,389 29,000 - Other taxes:
Sales and Use Tax 2,725,761 4,400,000 - - - - - - - - - - - - - Cannabis City Tax 490,000 - - - - - - - - - - - - - -
Transient Occupancy Tax 4,590,000 - - - - - - - - - - - - - - Franchise fees 781,155 - - - - - - - - - - - - - -
Other - - - - - - - - - - - - - - -
Licenses/permits 817,000 - - - - - - - - - - - - - -
Revenues From Current Service 2,040,775 - - - - - - - - - - - - - - Fines/Forfeitures 23,627 - - - - - - - - - 10,000 - - - - Other Revenues 30,980 - - 210,000 - - - - - - - - - - 1,767,307 Use of money and property:
Interest 150,000 - - - - - - - - - - - - - -
Rent 468,000 - - - - - 62,592 - - - - - - - -
Revenue from other agencies: - -
State - - - - - - - - - - - - - - -
State/County grants - - - - - - - - - - - - - - -
Federal grants - - - - - - - - - - - - - - -
18,655,732 4,400,000 - 210,000 - - 62,592 311,517 266,556 - 10,000 150,000 11,389 29,000 1,767,307 450 311 & 921 315 321 & 922 331 & 923 500 & 565 570 515-2430 900 907 915 925 924 941 All Funds Water Sewer Special Special Gov't Capital TOTAL
Information Operating & Utility Operating & Harbor Ops Assessmt Assessmt PEG Gov Economic Improvement Triangle Lot State Park Housing ESTIMATED Technology Capital Imprv. Discount Capital Imprv. & Equipment Districts Cloisters Fees Impact Developmen Projects Boat Yard Marina In-Lieu REVENUES Property taxes - - - - - 8,477 148,944 - - - - - - - 6,116,365 Intergovernmental Revenues - 287,085 - - 113,000 - - - - - 1,008,900 - - - 2,756,937 Other taxes: -
Sales and Use Tax - - - - - - - - - - - - - - 7,125,761 Cannabis City Tax - - - - - - - - - - - - - - 490,000
Transient Occupancy Tax - - - - - - - - - - - - - - 4,590,000 Franchise fees - - - - - - - - - - - - - - 781,155
Other - - - - - - - - - - - - - - -
Licenses/permits - - - - - - - - - - - - - - 817,000
Revenues From Current Service 80,000 7,649,200 - 9,460,000 2,711,821 - - - 105,946 - - - 110,000 10,000 22,167,742 Fines/Forfeitures - 55,000 - 30,000 8,000 - - - - - - - - - 126,627 Other Revenues - - - 150,000 500 - - - 35,000 - - - - - 2,193,787 Use of money and property: -
Interest - 72,637 - 243,604 30,000 - - - - - - - - - 496,241 Rent - - - 20,000 - - - - - - - 53,000 - 603,592
Revenue from other agencies: - - -
State - - - - - - - - - - - - - - -
State/County grants - - - - - - - - - - - - - - -
Federal grants/loans - - - - - - - - - - - - - - -
80,000 8,063,922 - 9,903,604 2,863,321 8,477 148,944 - 140,946 - 1,008,900 53,000 110,000 10,000 48,265,207
CITY OF MORRO BAY
APPROPRIATION LIMIT DOCUMENTATION
FISCAL YEAR 2025/26
CITY OF MORRO BAY
APPROPRIATION LIMIT DOCUMENTATION
FISCAL YEAR 2025-26
PROCEEDS OF TAXES CALCULATION APPROPRIATION LIMIT CALCULATION [1] PROCEEDS TOTAL [2] [3]
PROCEEDS OTHER THAN ESTIMATED CALIFORNIA POPULATION
OF TAXES TAXES REVENUES YEAR PCPI CHANGE CHANGE LIMIT
PROPERTY TAXES $ 6,116,365 6,116,365 1978-79 BASE YEAR $ 3,046,393 INTERGOVERNMENTAL 2,756,937 2,756,937 1979-80 10.17% 1.38% 3,402,527 OTHER TAXES 12,205,761 781,155 12,986,916 1980-81 10.53% 0.26% 3,770,591 PERMITS 817,000 817,000 1981-82 9.12% 1.39% 4,171,660
REVENUE FROM AGENCIES - 1982-83 6.79% 2.04% 4,545,796
STATE - 1983-84 2.35% 1.81% 4,736,835
STATE/COUNTY GRANTS - 1984-85 4.74% 1.75% 5,048,185
FEDERAL GRANTS - 1985-86 3.74% 1.62% 5,321,826
USE OF MONEY & PROPERTY - 1986-87 2.30% 4.12% 5,668,530 INTEREST 496,241 496,241 1987-88 3.04% 2.93% 6,011,990
RENT 603,592 603,592 1988-89 3.93% 3.83% 6,487,570
FINES & FORFEITURES 126,627 126,627 1989-90 4.98% 3.92% 7,077,629 CHARGES FOR SERVICES 22,167,742 22,167,742 1990-91 4.21% 4.59% 7,714,137 OTHER REVENUES 2,193,787 2,193,787 1991-92 4.14% 3.04% 8,277,721 1992-93 -0.64% 1.00% 8,306,991
$ 18,322,126 $ 29,943,081 $ 48,265,207 1993-94 2.72% 1.86% 8,691,654 1994-95 0.71% 1.40% 8,875,912
TRUE 1995-96 4.72% 1.60% 9,443,573
1996-97 4.67% 2.31% 10,112,922
1997-98 4.67% 2.06% 10,803,250
1998-99 4.15% 2.70% 11,555,378
1999-2000 4.53% 2.28% 12,354,234
2000-01 4.91% 2.46% 13,279,663
2001-02 7.82% 1.60% 14,547,223
2002-03 -1.27% 1.80% 14,620,998
2003-04 2.31% 1.32% 15,156,198
2004-05 3.28% 1.15% 15,833,334
2005-06 5.26% 1.19% 16,864,495
2006-07 3.96% 0.73% 17,660,315
2007-08 4.42% 0.96% 18,617,934
2008-09 4.29% 1.12% 19,634,110
2009-10 0.62% 1.01% 19,955,375
2010-11 -2.54% 0.87% 19,617,710
2011-12 2.51% 1.09% 20,329,315
2012-13 3.77% 0.47% 21,194,880
2013-14 5.12% 0.52% 22,395,914
2014-15 -0.23% 0.09% 22,364,513
2015-16 3.82% 0.78% 23,399,944
2016-17 5.37% 0.77% 24,846,376
2017-18 3.69% 0.59% 25,915,210
2018-19 3.67% 0.35% 26,960,330
2019-20 3.85% 0.24% 28,065,499
2020-21 3.73% -0.42% 28,990,070
2021-22 5.73% -0.30% 30,559,247
2022-23 7.55% 0.28% 32,958,496
2023-24 4.44% -0.50% 34,249,744
2024-25 3.62% -0.08% 35,461,193
2025-26 6.44% 0.00% 37,744,894
PROCEEDS OF TAXES 18,322,126
PROCEEDS OF TAXES
UNDER APPROPRIATION LIMIT $ 19,422,768
May 2025
Dear Fiscal Officer:
Subject: Price Factor and Population Information
Appropriations Limit
California Revenue and Taxation Code Section 2227 requires the Department of Finance to transmit an estimate of the percentage change in population to local governments. Each local jurisdiction must use their percentage change in population factor for January 1, 2025, in conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit for fiscal year 2025-26. Attachment A provides the change in California’s per capita personal income and an example for utilizing the price factor and population percentage change factor to calculate the 2025-26 appropriations limit. Attachment B provides the city and unincorporated county population percentage change along with the population percentage change for counties and their summed incorporated areas. The population percentage change data excludes federal and state institutionalized populations and military populations.
Population Percent Change for Special Districts
Some special districts must establish an annual appropriations limit. California Revenue and Taxation Code Section 2228 provides additional information regarding the appropriations limit.
Article XIII B, Section 9(C) of the California Constitution exempts certain special districts from the appropriations limit calculation mandate. The code section and the California Constitution can be accessed at the following website: http://leginfo.legislature.ca.gov/faces/codes.xhtml.
Special districts required by law to calculate their appropriations limit must present the calculation as part of their annual audit. Any questions special districts have on this requirement should be directed to their county, district legal counsel, or the law itself. No state agency reviews the local appropriations limits.
Population Certification
The population certification program applies only to cities and counties. California Revenue and Taxation Code Section 11005.6 mandates Finance to automatically certify any population estimate that exceeds the current certified population with the State Controller’s Office. Finance will certify the higher estimate to the State Controller by June 1, 2025.
Please Note: The prior year’s city population estimates may be revised. The per capita personal income change is based on historical data.
If you have any questions regarding this data, please contact the Demographic Research Unit at (916) 323-4086.
JOE STEPHENSHAW
Director
By:
ERIKA LI
Chief Deputy Director
Attachment
May 2025
Attachment A
A. Price Factor: Article XIII B specifies that local jurisdictions select their cost of living factor to compute their appropriation limit by a vote of their governing body. The cost of living factor provided here is per capita personal income. If the percentage change in per capita personal income is selected, the percentage change to be used in setting the fiscal year 2025-26 appropriation limit is:
Per Capita Personal Income
Fiscal Year Percentage change
(FY) over prior year
2025-26 6.44
B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2025-26 appropriation limit.
2025-26:
Per Capita Cost of Living Change = 6.44 percent
Population Change = 0.28 percent
Per Capita Cost of Living converted to a ratio: 6.44 + 100 = 1.0644 100
Population converted to a ratio: 0.28 + 100 = 1.0028
100
Calculation of factor for FY 2025-26: 1.0644 x 1.0028 = 1.0674
FISCAL YEAR 2025-26
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2024 to January 1, 2025 and Total Population January 1, 2025 City County Percent Change 24-25
Population Minus Exclusions 1-
1-24
Population Minus
Exclusions 1-1-25 Total Population 1-1-25
Morro Bay City San Luis Obispo 0.00 10,404 10,404 10,404 County Total San Luis Obispo -0.12 276,406 276,069 279,337
6/18/2025
1 FY 2025-26 Budget Adoption
Morro Bay City Council
Item 9.a
June 24, 2025
1 Presentation Outline
2 Budget Process Review
Actions for Budget Adoption
Brief review of Operating Revenue by Fund,
Operating Expenditures by Fund and Department,
and Capital Project Funding
Discussion and Recommendation
1 2
6/18/2025
2 Budget Timeline
3 Feb 18
Midyear Budget
Presentation to
CFAC
Feb 25
Midyear
Budget &
Fiscal Update
to Council
March
Departments
prepare
budget
requests
April
City
Manager/Exec
Team meetings
to review
budget
requests
May 20
CFAC
budget
review,
emphasis
on Measure
Q/E
May 28
Budget
Study
Session
June 24
Budget
Adoption
Actions for Budget Adoption
4 1. Adopt the Fiscal Year (FY) 2025-26 Operating and Capital Budgets
2. Adopt the Job Classifications for Utilities Project Manager, Collections and Pretreatment Operator, and Water Resources Compliance Specialist
3. Adopt FY 2024-24, FY 2025-26, and FY 2026-27 Salary Schedules
4. Adopt Compensation and Benefits for Unrepresented Management Designated Employees 2025-2027
5. Readopt the City’s Investment Policy
6. Set the FY 2025-26 GANN Appropriations Limit
3 4
6/18/2025
3 1. Citywide Budget Adoption
5 • Authority to collect and spend revenue
• Authority to carry forward unspent CIP budget and to complete transfers as required by adopted reserve policies
Citywide Operating Revenue by Fund
6 5
6
6/18/2025
4 Citywide Operating Expenditures by Fund
7 Expenditure Budget by Department
8 7
8
6/18/2025
5 Capital Projects: One-Year Plan
9 • Investing total of over $13.9M in critical infrastructure - 14 projects
1. Citywide Budget Adoption (cont)
10 • Budget changes from Proposed Budget presented at Budget Study sessions
• City Council directed no changes to staff • Decrease of $65K in the Economic Development Fund • Addition of forecasts for Harbor, Water, and Sewer Operating Funds
• Corrections/completion of Fund Balances Summary
• Other non-substantive completions, corrections, and updates 9 10
6/18/2025
6 1. Citywide Budget Adoption (cont)
11 • Impact of $65K decrease in the Economic Development Fund Increase /
(Decrease)
Proposed Revised Proposed
Citywide Expenditure $68,953,480 $68,888,480 $(65,000)
Budget
Citywide Operating Budget $55,135,527 $55,070,527 $(65,000) Economic Development $188,640 $123,640 $(65,000)
Fund Expenditure Budget
Economic Development $647,291 $830,210 $182,919
Fund Projected Ending Fund
Balance at 6/30/2026*
2. New Job Classifications
12 • Three proposed new classifications for Public Works • Utilities Project Manager • Collections and Pretreatment Operator • Water Resources Compliance Specialist • Utilities Project Manager was included in the Proposed FY 2025- 26 Operating and Capital Budget • The other two positions are changes to title and duties, but not to pay scale, so nothing to reflect in the budget document. 11 12
6/18/2025
7 3. Salary Schedules
13 • FY 2024-25, FY 2025-26, and FY 2026-27 salary
schedules
• Updated to include the three new job
classifications effective 7/1/2025
4. Management Salary and Benefits
2025, 2026, and 2027
14 • Approve updated Compensation and Benefits for
Unrepresented Management Designated Employees
document to include new Utilities Project Manager
position
13 14
6/18/2025
8 5. Readopt City Investment Policy
15 • Annual review required by State law
• No material changes to existing policy
• Consistent with State law and industry best practices • Outlines safety, liquidity, and yield as key objectives • Identifies positions permitted to invest funds
• Identifies internal controls, standards of care
• Outlines allowable investment types (governed by State law) • All City fiscal policies are on the City’s website and referenced and summarized in the budget document
6. Set GANN Limit
16 • Annual process required by State law
• Intent is to limit the appropriation of tax proceeds to limit the growth of tax-funded programs
• Figure is based on 1979 base year limit, adjusted for inflation since FY 2025-26 GANN Limit & Projected Tax Revenue • Legal limit for taxes we can collect & spend: $37.7 million • Projected tax revenues: $18.3 million
• City’s projected tax revenue is more than 51% below the limit and consistent with State law
15 16
6/18/2025
9 Recommendation
17 1. Adopt Resolution No. xx-25 adopting the Fiscal Year FY 2025-26 Operating and Capital Budgets
2. Adopt Resolution No. xx-25 approving Utilities Project Manager, Collections and Pretreatment Operator, and Water Resources Compliance Specialist Job Descriptions
3. Adopt Resolution No. xx-25 approving 2025, 2026, and 2027 Salary Schedules
4. Adopt Resolution No. xx-25 approving the FY 2025-26 and FY 2026-27 Compensation for Unrepresented Management Designated Employees
5. Adopt Resolution No. xx-25 readopting the City’s Investment Policy
6. Adopt Resolution No. xx-25 setting the FY 2025-26 GANN Appropriations Limit at $37,744,894
Discussion
18 17
18
6/18/2025
10 19
The City Budget at Work
Department Goals & Objectives
20 City
Council
Goals
Foundation
of Budget
19 20
6/18/2025
11 21
City
Council
Goals
Foundation
of Budget
22 City
Council
Goals
Foundation
of Budget
21 22
6/18/2025
12 23
City Council
• Maintain Community Grant funding
of $35,000
• Subcommittee involvement
• Liaisons to City Advisory Bodies and
participation in regional policymaking
• Council policy and procedure
updates
• Councilmember individual outreach
activities
City Manager’s Office
• Oversee implementation of City
Council goals
• Manage/coordinate City support of
countywide initiatives
• Continue modernization of systems
and technology
• Lead team building and supportive
effective training opportunities for
staff
• Continue work with lobbyists to
seek City funding
• Support City Council and implement
their direction
• Overall management of the City
organization and continuous
improvement
Administrative Services
• Collaborate on and support City
staff on financial aspect of City
Council goals
• In-House Analysis:
• Risk-Based Reserves
• Explore options for revenue
enhancement opportunities
• Collaborate on financial aspect of 5-
Year CIP and Harbor infrastructure
improvements
• Collaborate on research and
explore options for Morro
Elementary acquisition plan
• Continue partnership with Chamber
of Commerce, Visit Morro Bay, and
other organizations
• Consider opportunities for study
sessions, workshops, other
outreach
24 Community Development
• Develop Historic
Preservation Ordinance
• Review & update Cityowned properties
inventory
• Increase TOT by
implementing and
enforcing STR ordinance
• Explore options for
preserving original Morro
Elementary schoolhouse
• Conduct workshops and
other engagement to
define a vision and goals
related to Morro
Elementary
Fire Department
• Continue seeking and
winning grant awards for
critical safety equipment
• Complete Standard of
Cover Study/ Community
Risk Assessment
• Continue maintenance of
capital equipment
replacement schedule and
plans for funding
• Continue conducing
building plan review and
inspection services related
to permitting
Harbor Department
• Stay Engaged in OSW
• Pursue funding for North
T-Pier and Revetment
• Continue development of
pilot parking program at
boat launch and rock
• Refurbishment of light
posts on Embarcadero
• Continue implementing
Tidelands Facility
inspections
• Repair boat ramp & seek
grant funding
• Address mooring
• Assess feasibility of State
Park Marina Dredging
23 24
6/18/2025
13 25
Police Department
• Continue work with
businesses on crime
prevention strategies
• Support & promote safe,
family-friendly City events
• Evaluate, recommend,
implement pilot parking
program aligned with
community needs and
expectations
• Replace department radio
system
• Maintain department assets
on replacement schedule
• Continue improvements to
building to promote a
welcoming environment
Public Works
• Initiate 5-year project to
replace water meters
• Initiate study to assess Morro
Creek flooding impacts
• Continue and complete
Council Chambers Upgrade
• Continue project delivery of
pavement management,
storm drain repairs, water &
sewer priority projects
• Continue replacement of
walkways where uplifting
from trees has occurred
• Develop repair plan for North
T-Pier
• Replace upper section of boat
launch ramp
Recreation Services
• Partner with SLCUSD on Kids
Club for T-K
• Produce Community Activity
Guide
• Continue to Enhance
Community Events and
Wellness Programs
• Increase Cuesta College
Emeritus class offerings
• Partner with local
organizations to enhance
winter holiday events
• Increase/improve content
and delivery of existing core
events to increase attendance
• Continue with and expand fall
community music series
Tunes at Tidelands
25
AGENDA NO: 9.b
MEETING DATE: June 24, 2025
Prepared By: AS_____ Dept Review:
City Manager Review: _YK_____ City Attorney Review: __RWS___ Staff Report
TO: Honorable Mayor and City Council DATE: June 16, 2025 FROM: Airlin Singewald, Community Development Director
Via: Yvonne Kimball, City Manager
SUBJECT: Short-term Rental Ordinance Implementation – Quarterly Update
RECOMMENDED ACTION
Receive and file a quarterly update on the Community Development Department’s progress in implementing the City’s Short-term Rental Ordinance through permit annual renewal process, and resume issuance of commercially zoned STR permits, and provide staff direction as necessary.
ALTERNATIVES
Council can direct staff to bring forward changes to the STR Ordinance. This is not recommended because the annual renewal process of all permitted STRs has not been fully accomplished.
FISCAL IMPACT
There is no additional expenditure associated with the recommendation. Funds for implementation of an STR monitoring program have already been allocated in the Community Development Department budget.
The Council should consider the fiscal impacts of various policy options outlined in this report.
TOT from STRs is a significant revenue source for the city. In FY 22-23, the average STR paid approximately $4,000 in TOT revenue. In 2024, STRs generated $707,641 in TOT revenue for the City budget. As discussed in this staff report, the number of STRs in the city has declined since implementation of the annual renewal process, as STR permits are abandoned or expire without being replaced with new STRs. This will result in a corresponding reduction in TOT revenue to the City.
BACKGROUND
This item is a quarterly report on the Community Development Department’s (Department’s) progress implementing the City’s STR Ordinance, since the last update to Council on March 11, 2025. Refer to the March 11th City Council staff report for more detail on the background and requirements of the City’s STR Ordinance.
The City’s STR Ordinance took effect in September 2021. The STR Ordinance requires all STRs operating in the City to obtain and annually renew an STR permit. The City previously relied on the business license process as the sole method for evaluating STRs. This process did not allow staff to obtain the necessary information, such as STR type and zoning, to effectively implement the STR Ordinance, particularly the requirement of the annual permit renewal. Outreach and enforcement were also limited to the extent possible with available data.
In January 2025, the Department developed an STR permit renewal process and strengthened implementation of the STR Ordinance. This process is described, with links to application materials, on the City’s STR webpage.
Short-Term Vacation Rentals | City of Morro Bay - Official Website.
Through this process, the Department is requiring all legally established (“on record”) STRs to obtain an STR permit and undergo a site inspection to verify compliance with the STR Ordinance.
The Department is not currently issuing permits for new STRs until all existing STRs have been reviewed and inspected.
DISCUSSION
STR Permit Statistics
When the implementation process started in January 2025, STR data was limited. After implementing the above mentioned process for a few months, the Department has gradually built a more reliable STR database which can help guide enforcement actions and policy decisions.
The following is an update on STR permitting statistics as of June 16, 2025. These numbers change daily as the Department is actively processing and inspecting STR permits. The Department is evaluating 228 existing “on record” STRs. This includes all STRs (Residential, Commercial, and Home-share) with an active business license or TOT account at some point since 2022. The “on record” STRs are mapped in Attachment 1 and categorized as follows:
o In Process (75) – STR permit applications currently under review by the City. o Issued (19) – STR permits that have been issued this year. o Closed (60) – STR permits that have been closed, abandoned, or denied. o Not Started (74) – properties that have not yet applied for renewal. The Department closed 60 “on record” STRs, the majority of which were closed due to expired business licenses. The Department sent “sunset letters” to these properties to document that they are no longer considered active. This means if they are found to operate in the future, they will be subject to code enforcement action. The 46 closed “on record” STRs also includes STRs with active business licenses that were voluntarily abandoned.
Subtracting 60 closed STRs from 228 “on record” STRs results in 168 potentially active STRs.
The Department’s progress in reviewing 168 potentially active STRs is summarized as follows:
o Issued 19 STR permits for compliant STRs.
o Currently reviewing 75 STR permit applications that are in various stages of the permitting and inspection process.
o Pending review of 74 STR permits that have not yet submitted applications to start the renewal process.
The above numbers include all “on record” STRs, including Commercial, Full-home Residential, and Home-shares. The citywide cap of 175 STRs applies only to Full-home Residential STRs.
The following is a breakdown of the 168 potentially active STRs based on the Department’s best available information as of June 16, 2025:
o 21 Commercial
o 10 Home-share
o 137 Full-home Residential (this includes 64 Residential STRs that have not been reviewed yet, some of which may be Home-shares).
STR Permit Status – June 2025
Total On-record STRs (had active business licenses since 2022) 228 Closed STRs (voluntary and sunset) (60)
Potentially Active STRs 168
STR Permits Issued 19
STR Permits In Process (applications under review) 75
STR Permits Not Started (applications not submitted) 74 STR Permit Status by Type – June 2025
Potentially Active STRs by Type 168
Commercial Zoned STR 21
Home-shares 10
Full-home Residential STR (subject to 175 cap) 137
As described above, the number of existing Full-home Residential STRs permitted in the city is 137. This is a fairly substantial reduction from the previously reported number of 173. The primary reason for this reduction is a combination of landowners voluntarily abandoning their permits due, in part, to the cost of compliance (paying annual renewal fee, insuring property as an STR, etc.) and the Department sunsetting STRs that failed to renew their business licenses in past years.
The Community Development Department and Fire Marshal have conducted 68 STR property inspections so far this calendar year.
There are currently 187 properties on the City’s waitlist to receive a permit for a Full-home STR. Many of the waitlisted properties are within the 175-foot buffer of an existing STR and therefore wouldn’t be eligible to receive an STR permit, until neighboring properties abandon or lose their STR permits.
Policy Considerations
At the March 11, 2025 STR Update, the Department announced that City staff would not permit new STRs until all existing “on record” STRs are permitted and inspected. The purpose of this decision was to develop an accurate baseline of existing STRs in the city before approving new STRs.
The Department is midway through our annual renewal or an audit of all “on record” STRs. While the audit has shown a reduction in permitted STRs compared to previous estimates, staff recommends holding off on significant policy changes until the annual audit is completed. In addition, while the audit has shown a reduction in STRs, due to a change in vendors, the City has not been able to run a recent web search to identify illegally operating STRs. The City just signed a contract with Deckard Technologies for STR compliance services and during the next quarterly update (fall of 2025) will present the Council with a comprehensive report on the number of STRs advertising on online platforms. Additionally, this will allow a longer term to analyze revenue data associated with STRs, and provide a more complete picture of the existing STR landscape to better inform policy decisions.
While staff does not recommend significant policy changes at this time, staff does recommend resuming the issuance of commercially zoned STRs only, since they are not subject to a cap, have fewer neighborhood compatibility concerns, and can be a source of additional TOT revenue.
Alternatively, if the Council would like to make policy changes based on this report, the Council may consider directing staff to release properties from the waitlist and issue new STRs in compliance with the cap and buffer requirements; or initiate an urgency ordinance to prohibit new STRs and provide direction for future ordinance amendments.
The following table summarizes the Council’s options for policy changes:
1A No change – the Council may direct staff to continue pausing the issuance of new STR permits until the 2025 STR permit audit is complete. This would allow staff time to search online hosting platforms to determine the full extent of STR activity in the city before issuing any new STR permits. The Council could re-evaluate this determination during the next quarterly update (fall of 2025) when more information is available. 1B Staff Recommended. The same as above (No change), except for new Commercial STRs only – the Council may consider directing staff to resume issuing Commercial STR permits only, since they are not subject to a cap, have fewer neighborhood compatibility concerns, and can be a source of additional TOT revenue. 2 Allow for new STR Permits – the Council may direct staff to release properties from the waitlist and issue permits for new Commercial and Residential STRs, in compliance with the buffer and cap for Full-home STRs. This will likely maintain or increase the current level of TOT revenues from STRs.
3 Urgency ordinance – the Council could direct staff to adopt an urgency ordinance to prohibit the issuance of new STR permits and provide direction for ordinance
amendments, such as lowering the cap to equal the existing number of Full-home Residential STRs. This is not recommended as the annual renewal process has not been completed.
ATTACHMENTS
1. Current Vacation Rental Status Map (As of June 17, 2025)
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Marengo Dr.
Madera Ave.
Luisita St.
Hill
Rd.
Sunset Ave.
Butte Ave.
Panorama Dr.
Cabrillo Pl.
Radcliff Ave.
Koa Ave.
Prescott Dr.
Nevis
St.
Selby
St.
Pico St.
Downing St.
Atascadero
Rd.
Cuesta Ave.
Beachcomber
Dr.
Kings Ave.
Coral
Ave.
South St.
San Jacinto St.
Elena St.
Sequoia St.
San Joaquin St.
Kennedy Way
Sandalwood Ave.
Clarabelle Dr.
Napa Ave.
Ironwood Ave.
Surf St.
Ridgeway St.
Gilbert St.
Main St.
Tide Ave.
Tide Ave.
Bernardo Ave.
Tuscan Ave.
La Loma St.
Oak
St.
Fig
St.
Cypress
Ave.
Formosa St.
Pecho St.
S at et Park Rd.
Indigo
Cir.
Sienna St.
Orton
St.
Nassau St.
Java St.
Ma
S
in
t.
Conejo
St.
Paula St.
Mindoro St.
Kern Ave.
Greenwood Ave.
Hillview St.
Walnut St.
Elena St.
Mor
B
ro
a
B
y
lvd.
Norwich Ave.
Norwich Ave.
Avalon St.
San Juan St.
Highway
41 Beachcomber Dr.
Damar St.
Hill St.
Whidbey St.
Laurel Ave.
Seaview Ave.
Marina St.
Bonita St.
Bella Vista Dr.
Capri St.
Carmel St.
Acacia St.
Dunbar
St.
Rockview St.
Casita
S
s
t.
Elm Ave.
Hatteras St.
Pacific St.
Whidbey
St.
Marina St.
Anchor St.
Olive St.
Morro
Bay
Blvd.
Vashon
St.
Bali St.
Easter St.
Orcas St.
Ironwood
Ct.
Andros St.
Terra St.
Tahiti St.
Allesandro St.
Palm
Ave.
Alta Ct.
Driftwood St.
Morro Bay Blvd.
Marina St.
Center Ct.
Harbor St.
Olive St.
Sierra Ct.
Pelican
Dr.
Dunes St.
Vista St.
Trinidad St.
Market Ave.
Monterey Ave.
Shasta Ave.
El Morro
Trailer Ct.
Surf St.
Morro
Bay
Blvd.
Embarcadero Rd.
Beach St.
Monterey
Alley
Island St.
Sicily St.
Mindoro
Way
Orcas
Way
Coral St.
Bay Ave.
Piney Ln.
Reno Ct.
Vashon St.
Yerba Buena St.
Rennel St.
Dana Way.
Sunset
Ct.
Sunset Rd.
Agave Dr.
Piney Way
Toro Ln.
Java St.
Jamaica St.
Ironwood Place
Kodiak St.
Sicily St.
Orcas St.
Panay St.
Tahiti St.
Rennel St.
Trinidad St.
Atascadero
Rd.
Oahu St.
Luzon St.
Fresno Ave.
Beachcomber Dr.
Estero Ave.
Verdon St.
Mindoro St.
Morro
Bay
Blvd.
Morro Bay Alley
Front St.
Nevis St.
Panay St.
Park St.
Island St.
Azure St.
Preston Ln.
Morro Ave.
Whidbey
Way.
West Ave.
Scott St.
Crest St.
Berwick Dr.
Barlow Ln.
Fairview Ave.
Arcadia Ave.
Tulare Ave.
Arbutus Ave.
Allesandro St.
Balboa St.
Fir Ave.
Las Tunas St.
Morro Cove Rd.
Hwy 1 Ramp
Cerrito Pl.
Zanzibar St.
Coral Ave.
Maple Ave.
Elm Ave.
Blanca St.
Zanzibar St.
Surf Alley
Dogwood Ave.
Dawson St.
Mobile Home Park
Cedar Ave.
Sequoia Ct.
Birch Ave.
Luzon St.
Hemlock Ave.
Mimosa St.
Hwy 1 Ramp
Kodiak St.
Highway 41 Rd.
Alder Ave.
Bolton Dr.
Las Vegas St.
Scott St.
Sunset Ave.
Hillcrest Dr.
Nutmeg Ave.
Hemlock Ave.
Anchor St.
Mesa St.
Highway 41
Brad el y Ave.
Ponderosa St.
Juniper Ave.
Bayview Ave.
Hwy 1 Ramp
La Jolla St.
Hwy 1 Ramp
Bayshore Dr.
Hwy 1 Ramp
Embarcadero
Rd.
Hwy 1 Ramp
Indigo Cir.
Hwy 1 Ramp
South Bay Blvd.
Atascadero Rd.
Hwy 1 Ramp
Quintana Rd.
Quintana Rd.
State Park Rd.
Emerald Cir.
Oceanside Rd. Highway 1
Coleman Dr.
Little Morro Creek Rd.
Black Hill Rd.
Park View Rd.
City of Morro Bay
Current Vacation Rental Status
June 2025
0 3,000
Feet
¯
W:\GIS\CityofMorroBay\Planning\Projects\Vacation Rentals\B-VacationRentals-2025.mxd LEGEND
Vacation Rental Status (As of June 17, 2025)
!( IN PROCESS (75)
!( ISSUED (19)
!( NOT STARTED (74)
!( CLOSED (60)
Last updated on June 17, 2025.
Permit status changes daily.