AGENDA CORRESPONDENCE
RECEIVED BY THE CITY COUNCIL FOR
PUBLIC REVIEW PRIOR TO THE
MEETING
AGENDA NO: 3a
MEETING DATE: April 21, 2026
1 Heather Goodwin
From: Stephen Peck <[email protected]>
Sent: Monday, April 20, 2026 10:11 AM
To: CFAC; Council
Subject: City Council/CFAC Work Session of Q/E Expenditures Attachments: SLO City FY 202324 Local Revenue Measure Annual Report in Brief.pdf; SLO City FY 202324 Local Revenue Measure Annual Report.pdf
CAUTION: This is an external email. Please take care when clicking links or opening attachments.
Mayor and Council, thank you for the opportunity to discuss the budgeting for Q/E and the associated Q/E annual reporting.
After having been on the CFAC for almost six years now, I know that the level of detail in City staƯ’s annual reports to CFAC, and CFAC’s annual “reports” to Council may have varied widely. They have sometimes verged on detailed reporting on individual expenditures and transactions to more “programmatic” or “project” level reports. The measures themselves and the implementing ordinances identified in Municipal Code Section 3.26.120 only require that CFAC annually report on the “ revenues and expenditures” and the “activities funded” after review of the expense reports. While this review may have been perceived as an auditing function, this “oversight” function is for the purpose of advising the citizens and voters about how the special revenue funds have and are being expended. CFAC’s annual report to Council fulfills that reporting obligation.
The City Council has also tasked CFAC with promoting citizen participation with, and understanding of, governmental financial information and processes.
The early review of proposed Q/E expenditures for 2026/27, the CFAC’s review of the revenue policy, and the CFAC’s review of the expenditure plan and priorities for Q/E funds will make the CFAC’s and Council annual reviews more eƯicient, and more transparent and understandable to the public. For example, attached are two reports from the City of San Luis Obispo on their special sales tax measure. It outlines expenditures categories that align with the authorizations contained in its sales tax measure and reflects City Counci adopted priorities. The reporting is graphic and impactful, while still containing details called for in their “oversight” ordinance. A “report in brief” is also provided that can also be displayed/printed on a one-sheet, two-sided format. Morro Bay’s version of this kind of report will obviously vary based on the needs and expectations of Council and the public, but SLO’s reports are probably better aligned wity CFAC’s duty to report on the activities and outcomes that have and are planned to be funded by the special sales tax measures.
Stephen J. Peck, AICP
The Local Revenue Measure - also known as Measure
G-20 is a one-and-a-half percent (1.5%) local sales tax approved by City voters in November 2020 to replace
an existing one-half-percent (0.5%) local sales tax. It supports and maintains essential services and
facilities, such as open space preservation, public
safety, street maintenance including multi-modal
transportation improvements, flood protection, senior
programs, and other services and capital improvement
projects vital to a thriving community.
The adopted community spending priorities help guide
the Citizens' Revenue Enhancement Oversight
Commission (REOC) when making recommendations
to the City Council about Local Revenue Measure
uses. The Council uses the REOC's input, and
additional public feedback, to prioritize use of the Local Revenue Measure funding as part of the City's two
year financial plan process.
WHAT IS THE LOCAL REVENUE MEASURE?
ANNUAL COMMUNITY REPORT IN BRIEF
Fiscal Year 2023-24
This report in brief highlights the revenue and uses of the Local Revenue Measure in Fiscal Year 2023-24.
The REOC will continue its oversight role on the use of the Local Revenue Measure to support accountability,
transparency, and public engagement efforts. The
Local Revenue Measure continues to be a vital
resource to deliver the community's highest priorities
and support San Luis Obispo's economic stability.
FY 2023-24 Local Revenue Measure funds were used on the following Council-adopted priorities:
Addressing Homelessness
Cheng Park
Addressing housing and homelessness in our community is a Council adopted Major City Goal. The City collaborates with local non-profit partners, non-governmental agencies, the county, the state, and federal governments to advocate for increased funding and implementation of comprehensive and effective strategies to prevent and reduce homelessness. The Local Revenue Measure is an important funding source for the City's homelessness response efforts.
One of the major uses of Local Revenue Measure is for the maintenance of City infrastructure, including roads, parks, and public facilities. The Local Revenue Measure also helps fund the vehicles and equipment necessary to maintain the infrastructure. All City streets are swept on a regular basis. Visit the City's interactive website to see the street sweeping schedule:
https://www.slocity.org/living/maps/street-sweeping
Cheng Park was designed in 2005 and transformed an empty City lot at the corner of Marsh and Santa Rosa in the City’s downtown. At nearly 20 years old, the park was in need of revitalization and the Local Revenue Measure was used to fund restoration, replacement, or repair of park features including landscaping, irrigation, and the pond. The project also added solar lighting and ADA accessible items like handrails in the park’s gazebo.
SPENDING HIGHLIGHTS
Asset Maintenance
20% STREET MAINTENANCE AND TRANSPORTATION* - $15.6M 3% 46% 5% 10%
6%
*Projects listed in the "Street Maintenance and Transportation" category also include significant bicycle and pedestrian improvements.
COMMUNITY SAFETY - $6.7M OTHER VITAL SERVICES AND CAPITAL PROJECTS - $1.0M CREEKS AND FLOOD PROTECTION - $3.5M YOUTH/SENIOR SERVICES AND RECREATION FACILITIES - $2.1M OPEN SPACE - $1.6M 4%
ADDRESS HOMELESSNESS - $0.8M
2%
2%
1%
SAFE AND CLEAN PUBLIC AREAS - $1.5M FINANCIAL STABILITY - $0.5M ECONOMIC DEVELOPMENT - $0.5M Streets Resurfacing
and Reconstruction
The Local Revenue Measure helps fund the annual
resurfacing and reconstruction of local streets. Specific roadway improvements for FY 2023-24 included the
2023 Arterials Paving Projects on Orcutt Road and
Monterey Street, featuring improved curb ramps and
pedestrian crossing features.
REVENUE
Local sales tax revenue totaled $30.6 million in FY 2023-24, accounting for approximately one fourth of general fund revenue. The Local Revenue Measure has generated nearly $200 million since its original adoption in November 2006.
The Local Revenue Measure funds over 50 full-time positions and is the primary funding source for the vehicles and equipment used to keep the City safe and clean. $30.6M
PROJECT SPOTLIGHT
Operating Uses ($7.0M // 21%) – To fund positions that provide community services Examples of these costs include funding for positions such as police officers, open space rangers and firefighters. The Local Revenue Measure also funds critical supplies, materials, and other operating costs.
Capital Uses ($26.7M // 79%) – To fund construction and investment in infrastructure Examples of capital expenditures include construction of projects like the North Broad Street Park as well as the maintenance of City infrastructure.
North Broad Street Park
In August 2024, the City completed the North Broad Street Park. This location was previously home to a community garden in need of repair.
Thanks to funding from the Local Revenue Measure, the site now includes bike racks, a playground, a walking path with lighting, picnic tables, a hydration station with pet fountain, shade structure and covered seating area, and a large grassy field.
The new park also preserves the original use with 12 community garden beds, including six ADA compliant accessible beds.
CITY OF SAN LUIS OBISPO // View the full report at: https://www.slocity.org/government/open-government/city-budget/local-revenue-measure
USES OF FUNDS
*Uses of funds were higher than revenue due to carryover of unexpended funds from prior years
PROJECT SPOTLIGHTS
PAGE 9
Learn about the City's milestone projects that included the North Broad Street Park, Cheng Park revitalization, curb ramp installations, and more.
HOW WAS IT SPENT?
PAGE 6
Read about how Local Revenue Measure funds
were spent in FY 2023-24
LOCAL REVENUE MEASURE
ANNUAL COMMUNITY REPORT
Fiscal Year 2023-24
CITY OF SAN LUIS OBISPO
The Local Revenue Measure funds annual pavings projects which also include improvements to pedestrian and bicycling infrastructure.
WHAT IS THE LOCAL REVENUE MEASURE? 2
The Local Revenue Measure is a 1.5 percent local sales
tax approved by City voters in November 2020 and went
into effect on April 1, 2021. It replaced the previous 0.5 percent local sales tax approved by City voters in
November 2006.
It helps protect and maintain operating services and public infrastructure identified by the community such as public safety, creek protection, addressing homelessness,
keeping public areas safe and clean, retaining local
businesses, youth/senior services, streets, open
space/natural areas and other vital services and facilities.
The Local Revenue Measure helped fund
emergency repairs to infrastructure
damaged by the winter 2023 storms
3 Operating Uses
$7.0M I 21%
To fund positions that
provide community services.
Examples of operating expenditures include
funding for positions such as police officers,
open space rangers, and firefighters.
Examples of capital expenditures include the
emergency storm repairs along San Luis
Obispo Creek and the annual paving project
Capital Uses
$26.7M I 79%
To fund construction and
investment in infrastructure.
Local Revenue Measure expenditures fall into
two categories: Operating programs and
Capital programs
WHAT IS THE LOCAL REVENUE MEASURE?
LOCAL REVENUE MEASURE BALLOT MEASURE
(MEASURE G20) 4
The Local Revenue Measure helps fund
park improvements to be enjoyed by all.
"To protect the City of San Luis Obispo’s financial stability; maintain fire/community safety, health emergency/disaster preparedness; protect creeks from pollution; address
homelessness; keep public areas clean/ safe; retain local businesses; maintain youth/senior
services, streets, open space/natural areas, and other general services, by extending voter- approved funding at a 1.5¢ (1.5%) rate, providing approximately $21,600,000 annually until ended by voters; requiring audits/ all funds used locally." WHERE YOUR SALES TAX DOLLARS GO 5
The total sales tax rate of 8.75% in San Luis Obispo is shared between the City (2.5%), the State (6%), and the County Transportation Fund (0.25%). The Local Revenue Measure ensures that your sales tax dollars are spent locally.
Learn more at https://cdtfa.ca.gov/industry/local-and-district-retailer-taxes/local-tax.htm $0.8M
2%
$0.5M
Economic
Development
1%
$1.0M
Other Vital Services and
Capital Projects
3%
$1.6M
Open Space
5%
$3.5M
Creeks and Flood
Protection
10%
$2.1M
Youth & Senior Services
and Recreation Facilities
6%
$1.5M
4%
$6.7M
Community Safety
46% 20%
Street Maintenance and
Transportation*
$15.6M
LOCAL REVENUE MEASURE USES IN 2023-24
Local Revenue Measure funds were used according to the following priorities:
The Local Revenue Measure funded important
projects and operations citywide
6 *Projects listed in the "Street Maintenance and Transportation" category also include significant bicycle and pedestrian improvements.
Safe and Clean
Public Areas
Address
Homelessness
$0.5M
Financial Stability
2%
PROJECT SPOTLIGHT 7
Park features include shaded picnic tables,
climbing structures, and community planters
North Broad Street Park
In August 2024, the City completed the North Broad Street Park, which revitalized an existing City property. The park was built on the site of a community garden and maintains garden beds for community members. Other park features include bike racks, a playground, a walking path with lighting, picnic tables, a hydration station with pet fountain, a shade structure and covered seating area, and a large grassy field.
Before:
After:
SERVICE SPOTLIGHT 8
The City partners with County Behavioral Health, social service agencies, and local non-profit organizations to connect the City’s most vulnerable residents to resources and services.
Homelessness Response
Homelessness Response remains a top community identified priority for the City. While the City does not provide direct services to individuals, the Local Revenue Measure funds positions on the Community Action Team (CAT) and Mobile Crisis Unit (MCU) whose goal is to connect individuals experiencing homelessness with service providers and permanent housing opportunities.
PLANNED AND RECENTLY COMPLETED LOCAL
REVENUE MEASURE USES
9 The Local Revenue Measure is a critical revenue source for community investment. The City is committed to completing projects that maintain infrastructure and support the delivery of essential services to residents and businesses.
Ongoing Paving Projects Ongoing Curb Ramps March 2024 Cheng Park Ongoing Mission Plaza Concept Plan
August 2024 North Broad Street Park November 2023 Creek Bank Stabilization Add a subheading
LOCAL REVENUE MEASURE SUMMARY
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
10 The following pages include detailed information on the costs of operations and capital projects funded in each Local Revenue Measure priority. In most cases, capital projects span multiple years and as such, budgets carry forward rather than lapsing at year end.
Definitions:
Budget: The total funding allocated towards each project, including current year allocations and a carryforward of unspent funds from prior years. In many cases, projects also receive funding from other sources not detailed here and as such, this report should not be used to determine the total cost of a project.
Actuals: The amount spent on a project during the fiscal year.
Carryover: The amount of budget that was not spent during the fiscal year and will be carried forward to future years. Generally, any unspent funds remain in a project’s budget and are available for expenditure in future years.
Add a subheading
LOCAL REVENUE MEASURE SUMMARY
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
11 12
LOCAL REVENUE MEASURE SUMMARY
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
13 LOCAL REVENUE MEASURE SUMMARY
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
14 LOCAL REVENUE MEASURE SUMMARY
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
15 LOCAL REVENUE MEASURE SUMMARY
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
16 LOCAL REVENUE MEASURE SUMMARY
FOR THE FISCAL YEAR ENDED JUNE 30, 2024