CITY OF MORRO BAY
Notice of Special Joint Meeting of the
City Council and Citizens Finance Advisory Committee
Agenda
Tuesday, October 21, 2025, 3:00 p.m.
Veterans Memorial Hall
209 Surf St., Morro Bay, CA
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Pages
1. ESTABLISH QUORUM AND CALL TO ORDER
2. PUBLIC COMMENT FOR ITEMS ON THE AGENDA
3. SPECIAL MEETING AGENDA ITEMS
3.a REVENUE ENHANCEMENT OPPORTUNITIES AND RECOMMENDATIONS 1 Recommended Action
Staff recommends the City Council and Citizens Oversight/Finance Advisory Committee (CFAC):
Discuss CFAC Recommendations for potential revenue
enhancements;
1. 2. Prioritize short-term and long-term actions; and
3. Direct staff to further research or development implementation plans. 15 3.b REVIEW CFAC WORK PLAN AND POTENTIAL FINANCIAL PROJECTS FOR 2026
Recommended Action
Staff recommends the City Council and Citizens Oversight/Finance Advisory Committee (CFAC):
1. Review CFAC Work Plan; and
2. Discuss potential financial projects for 2026.
4. ADJOURNMENT
This agenda is subject to amendment up to 24 hours prior to the date and time set for the meeting. Please refer to the agenda posted at City Hall, 595 Harbor Street, Morro Bay, CA 93442 for any revisions or call the Clerk's office at (805) 772-6205 for further information.
Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for public inspection upon request by calling the City Clerk's office at (805) 772-6205.
In compliance with the Americans Disability Act, if you need special assistance to participate in a City meeting, please contact the Clerk's office 24 hours prior to the meeting to insure reasonable arrangements can be made to provide accessibility to the meeting.
Prepared By: EC Dept Review: ________
City Manager Review: _AL City Attorney Review: ____
Staff Report
DATE: October 15, 2025
TO: Mayor and City Councilmembers, CFAC Chair and Committee Members
FROM: Emily Conrad, Finance Director
SUBJECT: Revenue Enhancement Opportunities and Recommendations
RECOMMENDED ACTION
Staff recommends the City Council and Citizens Oversight/Finance Advisory Committee (CFAC):
1. Discuss CFAC Recommendations for potential revenue enhancements;
2. Prioritize short-term and long-term actions; and
3. Direct staff to further research or development implementation plans.
BACKGROUND
In recent years, the City’s revenues have plateaued compared to the period of growth in the early 2020s. In the same period, costs have continued to increase, leading to the need to increase revenues so that uninterrupted services to this full-service city could continue at the level desired by the community.
At their August 20, 2024 regularly scheduled meeting, CFAC discussed the need for additional revenue generation. In compliance with the Advisory Bodies Handbook and Bylaws, which allows for the formation of subcommittees for issues requiring additional work or research, CFAC unanimously desired to appoint a subcommittee to research opportunities for new revenue generation.
At the September 17, 2024 special meeting, CFAC appointed two members to the subcommittee:
Jean Johnson and Brian Dorfman. The defined purpose was to research revenue enhancement opportunities and report recommendations back to CFAC by June 2025.
At the May 20, 2025 regularly scheduled meeting, the subcommittee presented their recommendations to CFAC. The discussion was continued to a special meeting on June 17, 2025, resulting in final recommendations to be made to City Council.
DISCUSSION
CFAC recommended City Council’s actions and objectives should be “SMART”: specific, measurable, actionable, realistic, and time-specific. The final recommendations to City Council for AGENDA NO: 3.a
MEETING DATE: October 21, 2025
revenue enhancement are detailed in the CFAC Transmittal Letter dated June 30, 2025 (attachment 1), and include:
Sale of the property at 231 Atascadero Road, commonly referred to and formerly used as the Teen Center;
Creation of a paid parking program at Morro Rock;
Consideration of promotional activities at Morro Rock, such as food trucks, concerts, events; Enhancement of recreational vehicle (RV) facilities, such as negotiating a new lease for the Morro Dunes RV Park, and eventually use the former wastewater treatment plant property similarly;
Implementation of a marketing strategy to Cal Poly staff and students, and to the broader “local” potential visitor population;
Development of a “holistic” approach to facility rental pricing; Enhancement of existing coordination with Visit Morro Bay, Visit SLOCal, and other economic development organizations;
Sale or lease of the property at 781 Market Street, commonly known as Market Plaza, for a visitor-serving business;
Immediate modification of the General Fund Emergency Reserve Policy (adopted by Resolution No. 37-22 on April 26, 2022) to a minimum of 25% from the current minimum of 33%; and
Exploration of an Enhanced Infrastructure Finance District, including Climate Resilience Districts, and/or a Community Facilities District.
The above is a summarized list of the full recommendations and the CFAC Transmittal Letter (attachment 1) should be read for full context.
CONCLUSION
Staff recommends the City Council and CFAC discuss recommendations for potential revenue enhancements, prioritize short-term and long-term actions, and direct staff to conduct additional research and/or develop implementation plans.
ATTACHMENTS
1. CFAC Transmittal Letter dated June 30, 2025
2. CFAC Subcommittee Revenue Report
Transmittal Letter
June 30, 2025
To: Honorable Mayor and City Council Members
From: Citizens Finance Advisory Committee
Re: Revenue Enhancement Opportunities and Recommendations Recommendation
Last September, as a followup to the joint CFAC-City Council meeting in January 2024, the CFAC formed a subcommittee to “…research viable new sources of revenue” to address the city’s projected fiscal shortfall. The CFAC developed a work program to accomplish this task at its September 17th meeting. That work program is attached. During that meeting, Committee members Brian Dorfman and Jean Johnson volunteered for the study subcommittee and have been working diligently to complete the work program by the end of the 2024-2025 Fiscal Year, as planned.
On June 17th the CFAC met in a special meeting and adopted the attached recommendations to the City Council for its review and implementation. The recommendations contained in this report will result in an increase annual retail activity by $15 million to $20 million in five years, and annual gross hotel receipts $12 million to $15 million. This increase in local economic activity will result in a significant, immediate and ongoing increase in City fiscal revenues. The actual revenues that are realized will vary based on the timing of implementation, market conditions and how aggressively and completely the City implements the recommendations. Counting benefits from increased sales taxes, property sales, incremental increases in transient occupancy taxes (TOT), and Harbor percentage rent revenues, the City could realize an increase of $150,000 per year in ongoing revenues and $1.2 million in one-term revenues in the 2026/2027 fiscal year; an ongoing $800,000 per year increase by the 2028/29 fiscal year; and, a $3.8 million per year increase in the 2030/2031 fiscal year and beyond.
We recommend that the City Council take the following steps:
1. Receive and file the report and set a meeting date in the immediate future to review the CFAC’s recommendations. This meeting would preferably be a joint meeting of the City Council and CFAC, or a meeting where a CFAC representative would present the findings of the committee.
2. Based on the outcome of the CFAC/Council joint meeting, the City Council should then direct City staff to develop an implementation plan by the Mid-Year Financial Report that would be integrated into the 2026/2027 budget. These actions and objectives should be “SMART”—specific, measurable, actionable, realistic and timespecific. CFAC recommends the following:
• Based on the data and findings, CFAC recommends the following actions in the current (FY 2025/2026) fiscal year term to achieve the $150,000 annual increase in ongoing revenue in 2026/2027:
a. Sale of the “Teen Center” property on Atascadero Road for a visitor serving use, as prescribed in Plan Morro Bay. This sale should be with the expectation and stipulation that it be developed for a visitor serving facility like a hotel or motel that fills a gap in the City’s hospitality offerings. b. The City take the necessary actions to provide for paid parking at the rock, including development of the necessary expenditure and improvement plans to submit to the Coastal Commission. This application should also consider how the promotional activities (food truck, concerts, events) recommended for the rock can be implemented. The CFAC recommends a cautious, but deliberate approach to this item, including consultation with Native American stakeholder groups, and limitation of the parking fees to peak periods. The initial effort should be a “pilot” program as recommended in the Walker Parking Study. c. The city use the recommendation for enhancing RV facilities to negotiate a new lease for the Morro Dunes RV Park and for eventual re-use of the WWTP properties.
d. Implementation of the marketing strategy to CalPoly staff and students, and to the broader “local” potential visitor population. e. Development of a “holistic” approach to facility rental pricing so that significant visitor activities that create significant sales and TOT are not discouraged from Morro Bay. City should develop a sliding scale for facility rental which provides for reduced or no-cost use of City facilities based on estimated event local hotel and retail expenditures. f. Enhanced coordination with Visit Morro Bay, Visit SLOCal, and other economic development organizations to ensure seamless, effective, coordinated and non-overlapping promotional efforts.
g. Sale or leasing of Market Plaza for a visitor serving business that will generate significant sales tax and TOT. There is an unmet need for additional hotel rooms with meeting space, and this should be the focus rather than a facility that would compete with other lodging facilities near the waterfront. h. The City immediately modify the General Fund Reserve requirement to a minimum of 25%. After the city undertakes its “risk-based” assessment, this amount can be modified up or down.
• Based on data and findings, CFAC recommends the following actions in the near term (FYs 2025/2026 to 2027/2028 to achieve a $800,000 annual increase in revenue:
a. Continuation of items recommended in the immediate term. b. Planning and development for the WWTP and Morro Dunes properties. c. Explore use Enhanced Infrastructure Finance Districts (including the Climate Resiliency Districts), and/or a Community Facilities District to provide a long-term funding source for infrastructure. This recommendation could be established as part of the Waterfront Master Plan, or as part of strategy community wide.
• And, over the balance of the five-year term, the following longer-term actions should be taken by the end of FY 2029/2030 to realize the $3.8 million annual increase in City fiscal revenues:
a. Completion of all recommended items.
b. Ongoing funding for staff and organization necessary for ongoing promotional efforts.
3. The City should prioritize the use of its SB1090 (City Economic Development Fund 907) to cover any short-term costs associated with implementation. That fund, according to City projections, has a projected fiscal year 2025/26 ending balance of $836,100. Implementation of the revenue enhancement recommendations are precisely the kind of strategic expenditures there were anticipated to assist the City with economic adjustment.
4. The City Council should monitor the status of these items at least quarterly and make corrections to ensure timely completion.
Finally, we recommend that the city view these work items as an opportunity and not a work burden. Each and all of them are necessary to propel the City to the next plateau of revenue so that it can meet the community’s needs and expectations. Each of them have significant return on invested time and capital should be used as a good investment and should not be viewed as an “expense”.
Background
The need for additional revenue sources has been identified by the City for many years, going back to at least to the 2008 Management Partners report that concluded that “Expenses for providing public services have increased faster than City revenues, and the City lags in some important general revenue sources such as sales tax. At the crux of the City’s financial position is the very vision of the City and its future. Morro Bay will need to establish a clear vision of what it can and should do, establish service priorities, and determine if residents are willing to increase revenues to pay for City service levels.” Morro Bay has the envious position of having relatively high general revenues considering the size of its population. As shown in the graph below, Morro Bay collects more General Fund revenue per capita than all but one city in the County, and almost twice as much as several of its peer cities. Its per capita General Fund and special sales tax revenues are generally comparable to those for San Luis Obispo and Paso Robles, and significantly higher than those for Santa Maria, Arroyo Grande and Atascadero. General Fund and QE revenues have grown by $9.5 million between FY 2018 and FY 2025, an average annual rate of 6.6%. This has been the result of actions by past City Councils because of the expansion of hospitality uses that are subject to the City’s Transient Occupancy Taxes (TOT), and the passage of Measure E in 2020. Morro Bay’s revenue growth, however, has flattened out after a growth spurt between 2020 and 2023 that reflected the above two actions, while San Luis Obispo’s and Paso Robles levels have shown recent up-ticks.
To balance the budget, capital and infrastructure expenditures would need to be throttled back, or new revenues put into place. Rectifying the projected deficits that are created by expected capital expenditures will require an “immediate” additional annual infusion of $100,000 per year for the 2026/2027 FY, an additional (cumulative) annual infusion of $500,000 per year that can be realized in the 2028/2029 FY, and an additional (cumulative) annual infusion of $1,000,000 per year by the 2030/2031 FY. To put these needs in perspective, an additional $100,000 per year would require an increase in taxable retail sales of $4,000,000 above that currently projected, or 35,500 additional day visitors per year (685 additional per week). Realizing the $1,000,000 per year goal will require a combination of strategies involving property development, property sales, development of new hospitality properties, and other methods described below.
Most recently the draft City of Morro Bay FY 2025-26 Operating and Capital Budget has again sounded the alarm. The transmittal letter from City Manager Kimball states that the City’s primary revenue sources are growing at a slower growth pace, have “plateaued” or have “flattened”. The budget’s Executive Overview also states that “…the City must continually seek additional revenue generation to keep pace with community expectations for a full-service city and to address robust city goals.” And to the fiscal point, the budget states that:
“The City's primary revenue sources, including the market-dependent sales tax and transient occupant tax (TOT), have recovered to pre-pandemic levels. Rapid revenue growth is behind us, and the City now faces a leveling off or even declining revenue stream. The five-year fiscal forecast projections indicate that expenditure growth will outpace revenue growth. FY 2024-25 is projecting a return to baseline revenue growth rates in the 2-3 percent range, with inflationary pressures still present at 4-5 percent or higher on the expenditure side of the ledger. Inflationary pressure makes delivering the same level of city services cost more as the cost of providing staffing, supplies, services, and capital projects increases. This dynamic could result in structural deficits in years ahead, absent additional revenue sources.”
It is also apparent from the austerity at the Federal and State levels, that reliance on state or federal grants or “earmarks” to meet our capital needs is unrealistic and the community needs revenue sources that are under its direct control and management and not subject to the political and budget vagaries at the state and federal level. The General Fund And Special Sale Tax Revenue Per Capita
recommendations presented from CFAC herein are intended to be the roadmap for locally controlled structural fiscal solvency.
Attached: Adopted Work Program
CFAC Adopted Recommendations
TO: CFAC Chair and Committee Members DATE: June 192, 2025 FROM: CFAC Revenue Enhancement Subcommittee Members Johnson and Dorfman
SUBJECT: CONTINUE DISCUSSION OF REVENUE ENHANCEMENT REPORT PRESENTED BY SUBCOMMITTEE AT MAY 20, 2025 REGULAR MEETING
COMMITTEE RECOMMENDATION
The CFAC adopted the following recommendation at its June 17, 2025 meeting. Additions to the original recommendation are shown in underscored text and deletions are shown in strikeout text. Discuss the Subcommittee’s recommendations and consider a prioritized list of potential revenue enhancements for staff analysis and presentation to City Council.
BACKGROUND/DISCUSSION
Morro Bay Ranked #5 Small Coastal Town in the USA for 2025 Morro Bay was recently ranked #5 best US small coastal town in the by US News while Morro Bay State Park was also designated the #1 most popular destination of visitors within the entire California system of 280 parks.
This confirms that Morro Bay’s natural beauty is unique; highly sought after, with the potential to attract new day and overnight visitors with targeted marketing and branding, re-development of current city-owned property assets, and the addition of new visitor-serving businesses. City tax revenues could be further increased through establishment of special entities such as an Enhanced Infrastructure Finance District (EIFD).
Top 5 Morro Bay Revenue Enhancement Initiatives:
1) Focus marketing on Cal Poly students to increase day visitors 2) A pilot Paid Parking at the rock during peak periods 3) City-owned Properties - Targeted Development and/or Sale of Key Lots, including Market Plaza, the Teen Center and the Morro Dunes/WWTP properties. 4) Decrease the reserves level from the current 45% to a minimum of 225%. 5) Explore the use of Establish an Enhanced Infrastructure Finance District (EIFD) and Community Facility Districts (CFD) to fund essential services and unfunded infrastructure. 1) Focus marketing on Cal Poly students to increase day visitors - "daycations" Day visitors are down 15% from 195,000 in 2019 to 170,000 in 2024, as noted in the VMB presentation at the State of the City lunch. With a 22,000 population - and an estimated $3000 AGENDA NO: 3.a
MEETING DATE: June 17, 2025
per capita annual discretionary spending - students (and their parents) can significantly contribute to MB tax revenues in restaurants, recreation, transportation and retail.
STRATEGIES:
• Increase Morro Bay participation in the recreational activities of CalPoly WOW (week of welcome) week which covers 5500 incoming new students, along with family members and support staff.
• Focus outreach on high-profile student athletes and other campus organizations, such as sororities and fraternities, that have strong social media visibility and participation. • Reach out to Cal Poly departments to attract senior year projects ("learn by doing") that focus on new targeted marketing efforts, such as eco-tourism, agro-tourism, etc. • Outreach to regional restaurants to attract a trendy, young demographic, for example Firestone Grill, Spoon Trade, Petra Pizza and Grill and Flour House. • Develop a fun vibe and scene at Morro Rock including monthly food truck "Meet-ups", beer & wine garden and music/entertainment.
Year 1 total estimated day visitor revenue gains: $102,500 2) Paid Parking
STRATEGIES:
• Develop and implement a pilot project at the Rock that would take effect during certain high-volume times of the year/day. (Point of Purchase is crucial) • Obtain community acceptance (as well as Coastal Commission approval) through transparent communications and clear goals that would invest all revenue back into Rock infrastructure (e.g., bathroom maintenance, improved beach access; otter interpretive capabilities, better walkways, shower facilities like Avila and Cayucos).
Year 1 estimated paid parking revenue gains: $300,000 – 500,000 3) Targeted Development and/or Sale of Key City-owned Properties STRATEGIES:
• Develop RFQs for the Teen Center; 570 Dunes; 781 Market Plaza; 460 Downey and 1700 Embarcadero RV Park properties.
• Accelerate negotiations with the Cayucos CSD and cement plant regarding development of the former water treatment plant site (jointly owned with Cayucos CSD). • Consider the option of upgrading to a "glamping" resort on the 1700 Embarcadero 170- site RV park with current or new management. The current park is below its potential with basic facilities while also using large amount of land in prime viewshed areas for permanent storage of 300 mostly unused RVs. An upgraded resort would yield average daily revenues two to three times the current level, such as that of Flying Flags in Avila and Sun RV in Paso Robles.
• Consider outreach to attract a high-end boutique hotel with meeting and spa facilities for the Market Street property, potentially including parking lot land. • Potentially align these projects with establishment of an Enhanced Infrastructure Finance District and/or Community Development Facilities, per below.
Year 1 total estimated new and enhanced visitor-serving revenue gains: TBD based on appraisals
4) Decrease the reserves level from the current 45% to 25% Bring Morro Bay reserve strategy in line with its SLO county city peers who range from 15-25% by reducing the range to a 25% minimum.
5) Establish an Enhanced Infrastructure Finance District (EIFD) An EIFD would involve creation of a special taxing entity by the City of Morro Bay that would then receive a greater n additional 1% percentage of local property taxesproperty taxes from a specified major improvements or districts inof Morro Bay sites that would be re-allocated from the City, County and other non-school taxing districtsSLO county funds, per Proposition 13.
With and EIFD, the existing Prop 13 1% property taxes would be re-allocated between the taxing entities, with increases in property taxes allocated according to the revised formula.
Approval from other taxing entities would be SLO county approval would be based on recognition that the funded capital improvements would cause new development that would increase is expands total revenues for all affected taxing entities. There would no increase in taxes, on a different allocation of the new property taxes between the affected taxing entities to both parties. These funds would be earmarked for specific Morro Bay capital improvement projects. These can be established either as pay-as-you-go or bond funding and can encompass non-adjacent properties.
A Community Facilities District (CFD) could also be formed to level and additional tax on selected undeveloped properties. Existing developed properties in the community would be unaffected. There is a practical This property tax rate has a cap of 1.5%; therefore potentially allows a net gain of .43% from Morro Bay’s current 1.07% current property tax rate. (This structure was used in the development of Avila Ranch and San Luis Ranch in SLO generating over $1 million per year for each of these projects.) In Morro Bay these funds could potentially be derived from undeveloped or redeveloped Waterfront properties, the Vistra site, the Morro Dunes and WWTP properties, and the Morro Elementary School site.
Proceeds from the CFD could be used for applied to: maintenance and improvement of
harbor revetments and infrastructure (excluding Tidelands Trust properties); financing of Harbor operations; City safety operations and services; other major capital improvements and the Morro Elementary site.
Year 1 Total Estimated Revenues from establishment of an EIFD and/or CFD: TBD based on development plans
Other Potential Revenue-Enhancing Initiatives
6) Review and optimize revenue opportunities from aAthletic tournaments and events by improving sports fields to comply tournament requirements. Also, to take a holistic approach to charging non-profits and events for use of City facilities. A sliding school should be developed to recognize all of the City revenues from events. 7) Increase gas station revenue through “Buy Local” campaign SPECIFIC REVENUE DETAILS:
1) Focus marketing on Cal Poly students to increase day visitors ("daycations") Estimated revenue gains from increased day visitors
Increased student visits
Year 1 estimated tax revenue gains: $44,500
(Assumptions: average spend: $30@ visit; 25% of 22,000 student body; averaging 2 times@ month over 9 months; lead time 6 months)
Attract new high-visibility restaurant such as Spoon Trade or Firestone Grill Year 1 estimated tax revenue gains: $21,000
(Assumptions: 40 diner capacity; $35 average check; $1.4M annual turnover; lead time of 1 year)
Increased other area day visitors
Year 1 estimated tax revenue gains: $24,000
(Assumptions: $40@visit; 40,000 new visits; lead time 9 months) Monthly food truck Meet-ups
Year 1 estimated revenue gains: $13,000
(Assumptions: 10 trucks; 1x @ month; 450 clients; $16 average; $100 vendor fees; lead time 3-6 months)
Year 1 total estimated day visitor revenue gains: $102,500 2) Paid Parking
Year 1 estimated paid parking revenue gains: $300,000 – 500,000 (Assumptions: previous parking study estimated $300,000. Alternatively, 25% of 760,000 annual visitors (perVMB) @$4 per visit; local passes at $30@ year (20% population
penetration); totals $820,000 in revenues less system cost and staff time; lead time of 1 ½ years.)
3) Targeted Development and/or Sale of Key City-owned Properties Year 1 New and enhanced visitor-serving revenue gains
Upgraded Glamping Resort: $650,000
(Assumptions: increase current sites by 50% to 255 by removing storage RVs; average daily rate increases from $60 to $140 due to improved appearance & amenities; $9000 monthly base lease + 4% of gross revenues; lead time of 2 years)
Market Plaza development:
$1,500,000 (additional TOT, property and sales tax)
$1-2.5M (one-time land sale proceeds)
(Assumptions: 50 room lodging with retail facilities)
Sale of Teen Center, 460 Downey and 570 Dunes Properties: $3,000,000 – 5,000,000 4) Decrease the reserves level from the current 45% to 25% (Assumptions: this would done either proactively, or organically over time as city expenses exceed revenues)
5) Establish an Enhanced Infrastructure Finance District (EIFD) or Community Facilities District (CFD)
Year 1 Estimated EIFD Revenue Gains: TBD based on project scope
ATTACHMENT(S)
None
Prepared By: EC Dept Review: ________
City Manager Review: _AL City Attorney Review: ____
Staff Report
DATE: October 15, 2025
TO: Mayor and City Councilmembers, CFAC Chair and Committee Members
FROM: Emily Conrad, Finance Director
SUBJECT: Review CFAC Work Plan and Potential Financial Projects for 2026
RECOMMENDATION
Staff recommends the City Council and Citizens Oversight/Finance Advisory Committee (CFAC):
1. Review CFAC Work Plan; and
2. Discuss potential financial projects for 2026.
BACKGROUND
Per the City of Morro Bay Advisory Bodies Handbook and By-Laws:
“The Citizen’s Oversight Committee was established in accordance with the provision of Morro Bay Municipal Code Section 3.26.120 as a result of Measure Q, and subsequently Measure E, which resulted in 1.5% general purpose local retail transactions and use tax. The function of the Citizens’ Oversight Committee shall be to meet at least once per year as required by ordinance and to semiannually review revenues and expenditures from the tax proceeds collected as a result of Measure E and present its findings and conclusions to the City Council no later than the last day of the eighth month following the end of each City fiscal year.
The Citizens’ Oversight Committee shall perform the following duties:
1. Review an annual revenue and expenditure report of the City relative to activities funded with one and a half cent Measures Q and E general purpose local transactions and use tax monies.
2. Review a semi-annual revenue and expenditure report of the City relative to activities funded with the one and a half cent Measures Q and E additional general purpose local transactions and use tax monies.
3. Present its findings and conclusions to the City Council for its review no later than February 28th of each year.
When the committee is acting in the capacity of a Citizens’ Finance Advisory Committee, its purpose is to provide citizen input to the City Council regarding specified financial policy issues such as City budgets or other items designated by City Council. In addition, the Committee’s role is to help promote citizen participation with, and understanding of, governmental financial information and processes.
AGENDA NO: 3.b
MEETING DATE: October 21, 2025
The Citizen’s Finance Advisory Committee shall perform the following duties:
4. Review the proposed City budget prior to or in coordination with its presentation to the City Council, time permitting, and make recommendations for City Council consideration, with particular emphasis on the budget for Measure Q and E funds.
5. Undertake special financial projects, as directed by the City Council, City Manager, or City Treasurer.”
The CFAC has regular meetings at 3:00pm on the third Tuesday of the months of January, February, May, August, and October. The primary focus for each meeting is as follows:
January: Review Measure Q/E Annual Report (prior fiscal year) February: Review Measure Q/E Semi-Annual Report (current fiscal year) May: Review draft budget and provide input with focus on Measure Q/E August: Finance-related Council priority item (at Council direction) October: Finance-related Council priority item (at Council direction)
DISCUSSION
The current CFAC workplan is focused on review of Measure Q/E revenue and expenditure budget and actuals. This is an opportunity for City Council and CFAC to discuss potential special financial projects for the coming calendar year 2026.
CONCLUSION
Staff recommends City Council and CFAC review the current CFAC work plan and discuss potential special financial projects for 2026.
ATTACHMENTS
1. City of Morro Bay Advisory Bodies Handbook and By-Laws - Link