San Luis Obispo City Council
June 6, 2023

Item 7c – Adoption of the 2023-25 Financial Plan and Fiscal year 2023-24 Budget Page 8 E. Included in the 2023-25 Financial Plan is an increase for scholarship funds for Year 1: $20K and Year 2: $25K to assist families that qualify for financial assistance.

These new scholarship funds will be in addition to the support funds that we receive from CAPSLO (which can range between $25-$40K per year).

F. The City’s Economic Development Division has included funding in the 2023-25 Financial Plan to continue the childcare start-up grants of $50,000 to assist with new childcare businesses in the City.

Item 7c
Department: Finance
Cost Center: 2002
For Agenda of: 6/6/2023
Placement: Business
Estimated Time: 90 minutes
FROM: Derek Johnson, City Manager
Prepared By: Emily Jackson, Finance Director
Natalie Harnett, Principal Budget Analyst
SUBJECT: ADOPTION OF THE 2023-25 FINANCIAL PLAN

RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the Council of the City of San Luis Obispo, California, approving the 2023-25 Financial Plan and Fiscal Year 2023-24 Budget.”

POLICY CONTEXT
Although the City adopts a two-year Financial Plan, (Attachment A) the budget (also known as appropriations) is adopted annually. Pursuant to Section 804 of the City Charter, the City Council must adopt the 2023-24 Budget by June 30, 2023, in order for the appropriations to be in place when the 2023-24 fiscal year begins on July 1, 2023.

This action is accomplished by Resolution, which is provided as Attachment B.

DISCUSSION
Background
The purpose of this public hearing is to adopt the 2023-25 Financial Plan (Attachment A) and appropriate the FY 2023-24 budget. The Resolution (Attachment B) also adopts the updated appropriation limit to guide the budget appropriations as required under Article XIII B of the California Constitution.

After extensive community participation and several Council budget workshops and hearings beginning in November 2022, the 2023-25 Financial Plan is now ready for adoption. Key elements of the Financial Plan include:

1. Focus on long-term fiscal health, aligned with Fiscal and Budget Policies and Financial Responsibility and Sustainability Philosophy.

2. Align budget resources with Council-adopted Major City Goal strategies.

3. Prioritization of storm recovery and preparation for future events.

4. Meet the minimum fund balance and working capital policy requirements.

5. Invest in the future and fund maintenance of existing infrastructure and invest in the capital improvement program.

6. Address both required and “pre” payments to unfunded liabilities.

Item 7c
The 2023-25 Financial Plan includes city-wide budgetary allocations for the two-year period in the amounts summarized below:

Expenditures 2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget % Change
General Fund $113,808 $107,805 $114,317 $114,754 0%
Business Activities
Water Fund $27,154 $41,573 $32,040 $31,614 -1%
Sewer Fund $52,840 $89,819 $23,028 $23,784 3%
Parking Fund $6,718 $14,180 $57,699 $10,230 -82%1
Transit Fund $3,658 $7,130 $10,302 $9,612 -7%
Special Revenue
Tourism Assessment $1,642 $1,577 $2,129 $2,168 2%
Downtown Assessment $222 $275 $275 $281 2%
Total $206,042 $262,359 $239,791 $192,443 -20%
Changes to the Preliminary Financial Plan
At the April 18, 2023, Strategic Budget Direction meeting, Council provided feedback to the City Manager to have staff scope a work item around implementing parking minimums for consideration at the June 6, 2023, City Council Meeting. At this time, staff recommends scoping and analyzing existing resources during the first year of the Financial Plan and presenting Council with the findings before the 2023-25 Supplemental Budget adoption in June 2024. The additional time will allow staff to determine the true cost of the study and potential policy options to consider.

Final Documents
After Council adopts the 2023-25 Preliminary Financial Plan, staff will publish a copy of the Adopted 2023-25 Financial Plan and 2023-24 Budget online.

Additionally, staff will prepare a Budget-in-Brief that highlights the City’s budget process, key budget features, Major City Goal investments and basic “budget facts.” This budget summary is widely distributed and will be posted on the City’s website and shared through the City’s various communication channels and with community partners.

Previous Council or Advisory Body Action
The draft budget was presented to Council during the Strategic Budget Direction meeting on April 18, 2023. Council’s direction from that meeting was incorporated into the attached preliminary Financial Plan. The Planning Commission reviewed the City’s Capital Improvement Plan for the 2023-25 Financial Plan on April 26, 2023, and confirmed the plan’s conformity with the City’s General Plan.

1 The significant decrease in Parking Fund expenditures from FY 2023-24 to FY 2024-25 is related to onetime costs associated with construction of the Cultural Arts District Parking Structure.

Item 7c
Public Engagement
The City’s two-year Financial Plan process includes a high degree of public engagement and input ranging from community surveys, outreach to community groups and organizations, a Community Forum, and several public hearings prior to adoption.

CONCURRENCE
All departments participated in the development of the 2023-25 Financial Plan and concur with the information and budgets presented in the financial plan.

ENVIRONMENTAL REVIEW
Adoption of a budget is not a “project” as defined under the California Environmental Quality Act.

FISCAL IMPACT
Budgeted: Yes Budget Year: 2023-25
Funding Identified: Yes
Fiscal Analysis:

As outlined in detail in the Financial Plan, the City is appropriating $239,791,246 in the 2023-24 fiscal year and budgeted $192,443,355 in the 2024-25 fiscal year. Revenue and expenditures for all funds are balanced for the duration of the Financial Plan period.

ALTERNATIVES
Do not adopt the budget and give direction to the City Manager on desired changes and budget reallocations. This guidance will then be incorporated into the Financial Plan and presented on June 20, 2023, for adoption prior to the 2023-2024 fiscal year commencing on July 1, 2023.

If the proposed water and sewer rate increases are not approved, staff will amend the Financial Plan accordingly for presentation by the City Manager on June 20, 2023, for adoption by Council.

ATTACHMENTS
A – Preliminary 2023-25 Financial Plan
B – Draft Resolution approving the 2023-25 Financial Plan and FY 2023-24 Budget

Introduction
Reader’s Guide 5
Budget Message from City Manager 6
City Profile
City Council 17
Community Overview 18
The City at a Glance 19
Highlights of City Services 20
Organizational Chart 21
Organizational Values 22
Financial Plan Framework
Framework and Policies 25
Fund Structure 28
Basis of Budgeting & Accounting 32
Strategic Planning
Financial Planning Process 35
Strategic Priorities/ Major City Goals 39
Local Revenue Measure 6 3
Financial Plan Overview
Budget at a Glance – General Fund 73
Where the Money Comes From 77
What the Money is Spent On 79
Consolidated Financials 85
Long Term Forecasts 89
Operating Budget – Governmental Activities
Revenues
Transfers
Expenditures
Enhancements/SOBCs
Impact on Capital
Employee Summary
Administration
City Attorney
Finance
Human Resources
Community Development
Parks & Recreation
Public Works
Fire
Police
Utilities
97 101
103
106
111
112
119
139
146
157
167
187
205
Business Activities/Special Revenue
267
267
272
274
276
283
283
288
290
293
310
310
315
318
319
319
323
323
325
327
329
Water Fund
Budget at a Glance
Capital Budget
Debt Service
Operating Programs
Sewer Fund
Budget at a Glance
Capital Budget
Debt Service
Operating Programs
Transit Fund
Budget at a Glance
Capital Budget
Operating Program
Parking Fund
Budget at a Glance
Debt Service
Capital Budget
Operating Programs
Special Revenue
TBID
Downtown BID
Boysen Ranch
Safety Equipment
CFDs
330
Debt 337
Capital Budget
Overview 345
Project Summary List 363
Project Details/Narratives 369
Reference Material
Pension Obligation Trends 501
Appropriation Limit 505
Fiscal Policies 506
Budget Glossary 529
Resolution 539
Table of Contents
331
333
227
263
243
(Hyperlinked in PDF)

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blank.

3 Financial Plan Reader’s Guide
The Financial Plan Reader’s Guide is intended to provide a basic understanding of the 2023-25 Financial Plan and
describes the contents of each major section of this
document. It has been divided into the following sections:

Introduction
For the 2023-25 Final Financial Plan, this section provides a message from the City Manager giving an overview of the budget highlights as well as accomplishments of the City. The message also provides the financial context for the
City’s Financial Plan and outlines some key initiatives and assumptions in the plan.

City Profile
This section introduces the Mayor, Vice Mayor, and the
three City Council members and provides the reader with a brief overview of the City of San Luis Obispo, its location, population, interesting community information, as well as highlights of the services available to citizens and businesses.

This section also includes the City of San Luis Obispo’s organizational structure.

Financial Plan Framework
This section provides policy and regulatory requirements for the development of both the City’s budget which contains the planning framework used to develop the Financial Plan.

This section also identifies the City’s fund structure which is a combination of governmental funds and business activities.

It provides a description of each fund and the funding sources and the basis of budgeting and accounting.

Strategic Planning
Public Input on Financial Planning Process
This section explains the City’s public and budget
development process. It also provides a summary of survey responses and input from the Community Forum that Council considers when developing its goals for the two-year
Financial Plan.

Strategic Priorities
This section provides the detailed road map for the Major City goals, as well as other driving factors for the 2023-25 Financial Plan and the annual budget appropriation. It also provides information on planned expenditures for the City's Local Revenue Measure strategic investment (one and a half-cent salestax) for the upcoming two financial plan years.

Budget-at-a-Glance
This section provides the reader with a quick overview for the General Fund that shows where the money comes from
and what the money is spent on. It summarizes the
information that is later outlined in more detail and
encompasses investments in strategic priorities, as well as capital infrastructure and debt. It is a high-level overview of all the components presented in the following sections in more detail.

Consolidated Financial Plan
This section provides the consolidated long-term financial outlook that outlines the revenues, expenditures, capital investments, debt obligations, and the City’s beginning and ending fund balance for all funds.

Operating Budget
This section provides a summary of each Department’s
revenue and expenditure budget compared to the prior
year as well as the employee summary. Further details
provide a greater understanding about department
operations, key highlights, organizational structure and financial line-item summaries for the current budget to prior year budgets, variances between actuals and
budget. Performance measures are also included in this
section.

Business Activities / Special Revenue Funds
This section provides the budget overview and
operating budgets for the City’s four enterprise funds as well as the two business improvement district funds.

City Debt
This section outlines the City’s debt capacity and
considerations given when looking at issuing debt. It
outlines the City’s creditworthiness and comments from
the last rating review. The section provides the
information on current debt for all the major funds
including outstanding principal, the annual debt
payment, and the year the deb t will be retired.

Capital Budget
This section provides an overview of the five-year Capital Plan including project cost, project summary details
outlining the overview of the project, the key
deliverables and budget line items as well as operating impacts.

Reference Material
Financial Plan Reader’s Guide
Financial Plan Page 5

City Manager Message
City Manager’s Budget Message
I am pleased to present this two-year Financial Plan to the City Council and community. In my last Financial Plan message, I noted that unprecedented economic uncertainties brought on by the Covid-19 pandemic had factored significantly into the development of the 2021-23 Financial Plan. Even though the economic impacts of Covid-19 on the City’s budget are largely behind us, we are now wrestling with new uncertainty related to unprecedented inflationary pressures, while also working to factor unanticipated costs related to the January and March storms into the budget. While inflation and the storms have significantly impacted development of this two-year Financial Plan, I am proud to present a balanced budget in compliance with Article VIII of the City’s Charter and Title II and Title III of the City’s Municipal Code. The recommendations propose appropriations towards resources that advance our ability to deliver core services and continue the excellent work being done to address Major City Goals.

Building on Current Efforts to Move into the Future
This Financial Plan delivers investments in the Council adopted strategic initiatives and 74 established service programs while maintaining a balanced budget over the five‐year forecast period. This ambitious work program will undoubtedly bring new challenges which in turn will yield new opportunities. With this Financial Plan, the challenges that the City is addressing are some of the most pernicious issues facing society and ones that local government has a role in, but the solutions are neither easy nor inexpensive.

The City has elevated expectations for services and those services require a matching high level of investment.

The issues we face are ones where the City can be a leader and we need to measure our investment with expectations to ensure that outcomes align with how much the City by itself can have an impact.

Cooperation and participation with the Federal, State and County governments, as well as the non-profit and business communities are really what is required to make a significant impact on these complex and pithy issues. Moreover, to make progress and achieve meaningful outcomes with these ambitious goals the organization must maintain focus to ensure ongoing monitoring, reporting, and transparency and to make intentional policy and work program adjustments as needed.

Strategic Plan and Major City Goals
The proposed strategic plan and four Major City Goals guide continuation of workplans initiated over the last several years. Years ago, Major City Goals have focused on specific programs and projects, but the consistency of higher-level Major City Goals in recent years has supported a long-term focus on initiatives that bring about sustained systemic change. As identified by the City Council, the strategic goals of the City work together to address a broad set of community needs that serve all residents.

Economic Resiliency, Cultural Vitality & Fiscal Sustainability The economic uncertainty caused by the Covid-19 pandemic taught us how quickly the best laid plans can change. Despite the fact that the fiscal impacts of Covid-19 are largely behind us, the lessons learned support our ability to address current economic conditions. The strategic approach for 2023-25 will continue to build upon efforts currently underway, with a new focus on sustainable, diverse, and inclusive economic development, ensuring the vitality of our downtown, Financial Plan Page 6

City Manager Message
supporting arts and culture, and continuing to ensure fiscal responsibility and sustainable City operations. The $2,000,000 in revenue reserves will serve the City well should any economic turbulence impact revenues and afford the City the needed flexibility should it be required.

Diversity, Equity, Inclusion (DEI)
I am excited to continue with the excellent work initiated with the 2021-23 Financial Plan, to continue to operationalize DEI efforts into the City organization which will in turn support these efforts in the broader community. 2023-25 will see the completion of a DEI strategic plan, and new efforts will focus on embedding DEI language into existing policies and procedures both internally and externally for stakeholders and residents, including the DEI Manager in discussions about resource allocation, and focusing on policy updates and creation to reflect a DEI lens for internal processes to ensure all City Departments support work efforts included in the Major City Goal. City Staff have embraced their role in advancing diversity and the sense of belonging for all members in our community and I anticipate that our continued leadership and in particular, our partnership with Cal Poly will help address structural and systemic inequities.

Housing and Homelessness
This goal continues the City Council and community desire for increased housing production of affordable and workforce units. In addition, this goal appropriately focuses homelessness response efforts on collaboration with the State, County and local partners to ensure that all parties are engaged in a common goal to address this growing problem. New work efforts for 2023-25 include implementing certain aspects of the Housing Element, monitoring and updating the two-year Homelessness Response Strategic Plan, working on new shelter capacity in partnership with others and implementing the new Community Service Officer program to ensure an improvement in quality of life surrounding homeless issues, specifically in the downtown area.

Climate Action, Open Space, & Sustainable Transportation This goal continues to span a large spectrum of deliverables and continues efforts initiated over the last six years. The strategic focus for 2023-25 will be to implement Climate Action Plan and Lead by Example 2023-25 plans, enhancing the City’s greenbelt and making progress on our goal to plant 10,000 trees by 2035, preserving and enhancing equitable alternative and sustainable transportation options, increasing community resilience, and continuing to build City and community capacity for transformational climate action. Together, these strategies work to support an environmental quality that is unique to the City of San Luis Obispo.

Community Services and Programs
The City’s core services have developed over time based on community needs and input on programs that support an envisioned quality of life in San Luis Obispo. It is important to keep in mind that the City is more than a full-service City. In addition to providing public safety, water, wastewater and direct community and support services, the City has invested in supernumerary services that include open space management, aquatics programs, childcare, transit services, senior and other social services as examples.

The 2023-25 Financial Plan also appropriates resources needed to support storm recovery, core services and continue to make progress on Major City Goal programs. Recently, departments prepared workload analyses that identify the amount of staff time that is devoted to operational management of departmental functions, fulfilling obligations for required services and workplan projects, and addressing discretionary projects. Unsurprisingly, most departments are at capacity or oversubscribed. This Financial Plan recommends a minimal number of new permanent or contract staff positions to support existing programs. In recognition of constraints to staff capacity, the Major City Goal workplans include a limited number of new work program tasks.

Financial Plan Page 7

City Manager Message
Capital Improvement Projects
In November 2020, the Community
supported Measure G‐20 which provides
new and expanded funding to not only
maintain and enhance the City’s assets but
to build new infrastructure to serve planned
growth. The passage of Measure G-20
nearly tripled the amount of funding
available for Capital Improvement Projects,
which exceeded existing organizational
capacity. To address this, the City
contracted with Management Partners, a
local government consulting firm, to
perform an assessment of the City’s Capital
Improvement Plan. The assessment was
broadly focused on the entire CIP- including
a review of staffing levels, policies, and processes. Upon completion of the assessment, the City hired a contract CIP Process Improvement Manager at the end of 2021 to lead efforts to “right-size” the organization to address the significant increase in workload. Through the course of 2022, the CIP Process Improvement Manager worked to develop new classifications and added a net of 4.00 FTE new positions to support the CIP; and revised CIP policies to enhance governance of the CIP, including an expanded role for the CIP Review Committee to ensure proper oversight and coordinated decision-making throughout the year as needs change. In early 2023, the City hired its first CIP Administrative Manager, who will be responsible for overseeing the non-technical aspects of the City’s CIP, including budgeting and reporting, and will continue the work to right-size the organization to address the expanded CIP.

Consistent with prior years, development of the two-year Financial Plan includes a “refresh” of the City’s five-year CIP. The budget included in the 2023-25 Financial Plan represents a two-year investment of $183 million, and a planned investment of $465 million over the five-year plan to maintain or replace existing assets and build new assets to address the needs of our growing community.

As Council is aware, the City continues to navigate economic uncertainty and cost escalation, which have significantly impacted the ability to fund existing projects and add new projects to the Capital Improvement Plan. The Council will need to be cautious and focused on core commitments towards the City’s capital program and any new projects or shifting of capital costs to the General Fund may have a significant impact on the delivery of planned improvements. The bright side is that the CIP does deliver many legacy projects and it is anticipated that the City will be successful in securing Federal and State grants to otherwise build up the short-, medium- and long-term capital program.

In addition, the ongoing work to assess damages to the City’s infrastructure from the January and March storms and planning for necessary repairs has impacted the City’s capacity to deliver new and existing projects. The recommended budget for the FY 2023-24 CIP includes $2.75 million to storm response and recovery. Development of the updated five-year CIP has served as a good reminder of the significant impacts that broader economic conditions and unanticipated circumstances have on the City’s ability to improve and maintain its infrastructure. Though Measure G-20 continues to provide resources that are critical to deliver needed projects to support the quality of life in San Luis Obispo, cost escalation is significantly impacting our ability to plan for new projects in the coming years.

Figure 1- The recently completed "Railroad Safety Trail” (Taft to Pepper Streets) project was selected for the ASCE Region 9 Outstanding Bikeways and Trails Project Award for 2022
Financial Plan Page 8

City Manager Message
Highlights
I am proud of all of the hard work and collaboration that has gone into developing this recommended Financial Plan and I want to highlight a number of key components:
• Recovery from the January and March storms has been and will continue to be our highest priority work efforts. There are a number of high priority damage areas that we must address, and the Financial Plan allocates resources to support this work. • Continued adherence to the City’s plan to continue to pay down pension liabilities by making additional discretionary payments to CalPERS, in addition to regular required payments. • Despite the unanticipated costs related to the recent storms, I am proud to be able to recommend Significant Operating Budget Changes (SOBCs) that will help to support core services and further the excellent work being done in Major City Goal areas.

Long-Term Outlook
The 2023-25 Financial Plan represents a continuation of the economic uncertainty that began with the Covid-19
pandemic. While the pandemic caused us to alter our
service delivery, the inflationary pressures we face
today push us to focus on making investments that will
serve our growing community in the long-term.

Recommendations reflect full operationalization of
organizational changes as the “new normal” takes hold
following the formal end of the pandemic. Over the past few years, the City has had to transform our delivery of service and capital programs in line with new resources, grant opportunities, changes in personnel and new community and governance expectations.

Each of these alone would by a powerful factor and all at once requires that the City continue to focus on implementing systems to account for these once in a generation changes. Thankfully, the City Council has recognized these unique opportunities and additional resources to tackle work programs and for the organization to fulfill the community’s long‐term vision.

The long‐term fiscal outlook concentrates on delivering the services and capital improvement projects and it maintains its pre‐pandemic commitment to address the long‐term pension liability by making Additional Discretionary Payments (ADPs) in the amount of $2 million per year. These efforts will support the long‐term fiscal sustainability and financial well‐being of the City and continue the expected levels of services to the community.

Balancing Resources with Ambitions
The last few years have been defined by a series of emergencies and a recalibration of work and expectations and the addition of new resources and projects to meet the community’s needs.

Moving forward, the challenge will be to balance continuation of these new resources and projects, with the eventual need to expand service delivery to support our growing community in a fiscally sustainable manner.

In the last several years, the City has worked hard to address a pent-up demand for housing. A number of large-scale developments are underway, which will add new community members and new infrastructure will be needed to support them. The costs associated with building and providing ongoing maintenance to this new infrastructure will be considerable, and we will need to prioritize these costs in order to expand delivery of our core services.

Financial Plan Page 9

City Manager Message
In addition to expanded service level responsibility, the inflationary pressures that we are all experiencing personally impact the City as well. As the cost-of-living increases, we will have a need to continually focus our efforts on paying competitive wages that acknowledge the work of our employees and helps to retain them. Cost escalation and supply chain issues have significantly impacted the cost and time needed to deliver our ambitious CIP and have limited our ability to add new projects to our five-year plan, which forces us to recalibrate our expectations of what is possible. In addition, we need to be mindful of how inflation impacts the cost to deliver water, sewer, parking and transit services through our enterprise funds. These critical services are supported through user fees, and we need to be mindful of our costs in order to ensure that these services are accessible to the community.

Challenges
With support from our community and the Council, we have a bright future ahead, but also acknowledge that we face a number of challenges.

More Revenue, More Volatility
The revenue growth that the City has seen in the last several years due to the passage of Measure G-20 has enabled us to expand important programs and services and fund capital projects in ways that were not previously possible. While there are many positives that come from this revenue growth, we also face some risk as the City’s budget has become increasingly reliant on a funding source that is heavily impacted by the economic volatility has become constant over the last several years.

CalPERS Unfunded Liabilities
Unfunded pension liabilities continue to be a significant focus for our organization. In 2017, CalPERS made some significant policy changes to address unfunded liabilities systemwide, which resulted in significantly increased required pension contributions for member agencies. In response to this, the City Council adopted a Fiscal Health Response Plan (FHRP) in FY 2018-19 to position the City to increase its pension contributions in line with new CalPERS requirements. The FHRP included three main components: new revenues, operating reductions and new ways of doing business, and employee concessions. We have made substantial progress in each of these areas, which has enabled us to make additional payments to CalPERS. While these additional payments helped us to achieve a funded status of 70.1% in 2021, general economic conditions and the -7.5% investment return that CalPERS experienced in FY 2021-22 has set us back where we were in 2015.

Earlier this year, the City contracted with Foster & Foster, an independent national actuarial consulting firm to perform a review of the City’s progress in paying down unfunded pension liabilities. Foster & Foster confirmed that the City is taking appropriate action to make progress in paying down the unfunded pension liabilities, but that market conditions impacting CalPERS investments hinder progress. The impact of the -7.5% investment return in FY 2021-22 is a stark reminder that the City’s ability to address unfunded liabilities is heavily impacted by factors outside of the City’s control. Based upon the actuarial analysis, the long-term forecast will need to be revised in order to factor in the expected increased pension costs in the out years. Given current economic uncertainty, we have not modified our approach to the recommended Financial Plan for 2023-25 but know that we have some work to do to determine how to address increased pension costs in the long-term.

Financial Plan Page 10

City Manager Message
Storm Expenditures
The significant storms that hit our community in January and March has required unanticipated expenditures to support emergency protective measures, remove debris from the public right of way, and make repairs to damaged City infrastructure. To date, the City has incurred just under $4 million of expense related to the storms, and Public Works estimates an additional $4.3 million of expense to make high priority repairs and $9.5 million for medium and low-priority work. As of the writing of this message, staff is assessing the risks posed by damages and weighing those with the cost to make permanent repairs to decide which projects to move forward.

In late January, I activated the Fiscal Health Contingency Plan to provide a framework for responding to the fiscal impacts of the storms. The operating reserve is being used to fund storm response and repairs and we are prioritizing replenishment of the reserve back to the 20% reserve level, consistent with policy requirements. The long-term forecast assumes use of $9 million from the reserve, spread over the current fiscal year and next. In addition, this Financial Plan includes a recommended capital project in the amount of $2.75 million to repair damages from the storms.

In total, staff has identified $11.75 million in funding sources to address storm costs. At this time, the City is eligible for Federal and State reimbursement for the January storms only. The maximum reimbursement for eligible costs is 93.75% (75% from FEMA and 18.75% from CalOES), meaning that the City will pay a minimum of 6.25% for certain storm related costs. If full reimbursement of eligible costs (93.75%) is not achieved, reductions will be made in future CIPs. Staff in Finance, Fire and Public Works are working in collaboration with FEMA to ensure proper documentation to maximize reimbursement, and we have also recently contracted with Ernst and Young for disaster recovery technical assistance in navigating the complex reimbursement process.

Workforce Transition and Development
In early 2023, the City partnered with The Centre for Organization Effectiveness to conduct an employee engagement survey. This survey aimed to gain valuable insights into how the City can best support employees in achieving their departmental goals and foster a positive and engaged workforce. The impressive response rate of 88% from surveyed employees reflects the high level of staff engagement.

Despite the overwhelmingly positive survey results, it is vital for the City to continue prioritizing staff training and development initiatives. Similar to many employers, the City has faced increased turnover in recent years, attributed to the effects of the Great Reshuffle. Notably, 43% of surveyed employees have been with the City for five years or less, and the median tenure of the workforce is just over five years.

To foster the growth and retention of the current workforce, it is imperative to continue strengthening the City’s investment in learning and development. This includes enhancing the onboarding plan for new hires and providing them with the necessary tools and support to thrive in their roles. Additionally, a strategic focus on knowledge management and seamless knowledge transfer will enable the City to harness the expertise and institutional knowledge within the organization.

Figure 2 - City staff across all
departments stepped up to
respond to the 2023 storms.

Financial Plan Page 11

City Manager Message
State Budget Forecast
In mid-May the Governor released the May Revision to the FY 2023-24 proposed budget. The updated budget projects a $31.5 million budget deficit. At this point, the Governor’s proposal to close that gap has not redirected funds away from cities. However, as the Governor and Legislative Leaders begin negotiating on a final budget package, there is still a chance that there could be cuts to funding that flows to the cities. The League of California Cities has been fighting efforts to cut funding for cities and advocating for more funding to address homelessness. While, this additional funding did not materialize in the May Revision, there is still hope that it could be added during budget negotiations.

The City has been actively pursuing once-in-a-career grant opportunities related to the Inflation Reduction Act of 2022 and the Infrastructure Investment and Jobs Act. These two laws resulted in $100s of billions flowing from the Federal government to states, counties, and cities. The City is actively monitoring these opportunities to find ways to leverage these funds to complete projects throughout the City including the Prado Road Bridge & Road Widening, Prado Road Interchange, and Active Transportation infrastructure throughout the City.

City Values During Economic Turbulence
While unbudgeted costs from the January and March storms were the impetus for activation of the Fiscal Health Contingency Plan (FHCP) at the end of January, the plan also provides a framework to address the economic turbulence that we are currently facing. The key elements of the plan require that we pay close attention to the overall fiscal health of the organization by maintaining fund balances at policy levels, adhering to key budget and fiscal policies, monitoring the City’s fiscal health on an ongoing basis, assessing the challenges, identifying options and preparing and implementing an action plan.

In many ways, the FHCP promotes the ongoing values of the City, as it encourages involvement and participation from key stakeholders including the organization as a whole, employee associations and community groups. Central to the FHCP is a focus on respect, which means that we are committed to sharing facts in a straightforward and timely way, even if doing so is difficult for the community and organization. Communication is critical to promoting respect everyone involved and helps to ensure that stakeholders have the opportunity to come to the table to engage in developing and implementing meaningful strategies to address adverse fiscal circumstances.

Accomplishments
Despite the economic public health difficulties of the last several years, our organization has accomplished a lot. Over the course of the 2021-23 Financial Plan, we have made progress in a number of areas that support both our ability to deliver core services and advance Major City Goal efforts. Many of these efforts contribute to a legacy that we can all be proud of:
• Established the Office of DEI and hired the City’s first ever DEI Manager to help to further the City’s goal to create an organization and community that is safe and welcoming for all. • Implemented and grew a number of programs including the Mobile Crisis Unit and Community Action Team, to support the needs of our most vulnerable members of our community.

Figure 3 - “The Greys in Between”,
created by artist Anila Quayyum Agha,
is a permanent sculpture at the center
of the newly completed Orcutt-Tank
Farm roundabout.

Photo credit: Steven Heraldo
Financial Plan Page 12

City Manager Message
• Secured millions in outside grant funding to support general fund and business service projects and programs.
• Updated the City’s Climate Action Plan which was recognized as the best CAP in the United States by the American Planning Association.
• Began development of the City’s next Economic Development Strategic Plan. • Continued community preparedness efforts for disasters through development of disaster plans and monitoring creek maintenance and wildfire protection plans. • Continued to develop and refine Cannabis regulations. • Developed a Parks and Recreation ‘Blueprint for the Future’ to guide development of parks, facilities and programs in the city through 2041.
• Developed a Citywide purchasing policy and improved business license and tax compliance to support organizational fiscal sustainability.
• Implemented a Community Service Officer program to ensure effectiveness and improvements in quality of life surrounding homeless issues in the downtown. • Improved and opened the Miossi Open Space, adding 266 acres to the City’s greenbelt. • Completed or made considerable progress on a number of high impact and visibility projects including:
o Tank Farm Roundabout.
o Taft to Pepper Railroad Safety Trail.
o Groundwater Contamination Characterization.
o Wastewater Resource Recovery Facility Upgrade (construction ongoing). o Broad/Woodbridge Pedestrian Beacon.
o Downtown Paving.
• Implemented the provisions of SB 1383 which aims to divert 50% of organic waste from landfills. • Began construction of the Cultural Arts District Parking Structure, which will anchor and support future development of the Cultural Arts District in the downtown. • Adopted a Homelessness Strategic Plan.
• Updated the City’s Public Engagement and Noticing Procedures (PEN) manual as well as other public outreach efforts to increase diverse participation in City processes.

Conclusion and Acknowledgements
Development of this two‐year Financial Plan amid
considerable uncertainty has been a challenge. Despite
the uncertainty, staff has worked hard to develop budget recommendations that balance investment in the City
Council’s identified Major City Goals with core service obligations and ongoing storm recovery efforts in a way that prioritizes the long-term fiscal health of the
organization. Staff recommendations represent a
measured approach in response to significant
community input and Council direction to make progress
in priority areas while leaving room for future
adjustments, if needed to respond to changing economic
conditions.

I am grateful for the tremendous efforts of all City staff over the past 24 months, as we have learned to operate
in a period of continuous change. I want to thank members of the Financial Plan Steering Committee, Financial Plan Page 13

City Manager Message
composed of Department Heads and senior City management, which met at least monthly throughout the last year to develop a comprehensive financial and management strategy that not only advanced Major City Goals, but also preserved and reimagined services. Their advice and input were critical in the development of this financial plan.

I also want to thank the Finance Department’s budget team, who did the heavy lifting in the preparation of the actual document. They include Finance Director Emily Jackson, Principal Budget Analyst Natalie Harnett, and Accounting Manager/Controller Debbie Malicoat. Business and Administrative Manager Rebecca Bernstorff, Public Works Director, Matt Horn, HR Director Nickole Domini, Deputy City Manager Greg Hermann and Assistant City Manager Shelly Stanwyck also contributed significantly to development of this Financial Plan. For months, they toiled over numbers, strategies, and changes in forecasts to produce the final balanced Financial Plan.

My greatest appreciation goes to the Community, City Council, City employees, and community partners who continue to engage and provide meaningful input as we pursue a bright future for an inclusive and vibrant community.

With gratitude,
Derek Johnson
City Manager
Financial Plan Page 14

CITY PROFILE
Financial Plan Page 15

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Financial Plan Page 16

The City of San Luis Obispo is a charter city and operates under the "Council-Mayor-City Manager" form of municipal government. The five-member City Council consists of the directly-elected Mayor, a Vice Mayor and three City Council Members. The Mayor is elected to a two-year term and the Council Members are elected to four-year terms.

The City Council is the legislative authority and sets the policies under which the City operates. The City Council has the power to adopt ordinances and resolutions, make appointments to the City's advisory bodies, establish policies and approve programs, appropriate funds, adopt budgets, and approve contracts.

The Mayor presides at all meetings of the City Council and is recognized as the official head of the City for all ceremonial purposes.

Once a Financial Plan has been adopted, the Council's focus moves to 1) advocacy for its major initiatives at the Federal, State, County and Community Partner level - 2) Leadership for Community Partnerships, Regionalism, Governance - 3) Monitor the impact and outcomes of work programs and direct appropriate adjustments.

C I T Y P R O F I L E
City Council
2023-25 City Council Financial Plan Vision
The City of San Luis Obispo is a dynamic community embracing its future while respecting its past with core values of civility, sustainability, diversity, inclusivity, regionalism, partnership, and resiliency.

Andy Pease
Councilmember
Michelle Shoresman
Councilmember
Jan Howell Marx
Vice Mayor
Emily Francis
Councilmember
Erica A. Stewart
Mayor
Financial Plan Page 17

Located mid-way between San Francisco and Los Angeles, San Luis Obispo is the County seat and a number of federal and state regional offices and facilities are located here, including Cal Poly Sate University, Cuesta Community College, the regional Water Quality Board, California Highway Patrol Dispatch Center, and Caltrans District Offices. The City’s ideal weather and natural beauty provide numerous opportunities for outdoor recreation at nearby City and State Parks, lakes, beaches, and wilderness areas.

Commmunity Overview
While San Luis Obispo grew relatively slowly
during most of the 19th century, the coming of the
Southern Pacific Railroad in 1894 opened up the
area to the rest of California. The City’s distance
from major metropolitan areas to the north (San
Francisco) and south (Los Angeles) have allowed it
to retain its historic and scenic qualities, which
contribute to the superb quality of life residents
enjoy and that attract visitors from all over the
world. In fact, in 2010, the City was dubbed the
“Happiest City in North America” by National
Geographic author Dan Buettner.

Another key feature contributing to the City’s
great quality of life is its delightful downtown.

The heart of which is the Mission Plaza. With its
wonderful creek side setting and beautifully
restored mission and parish church, Mission Plaza
is the community’s cultural and social center.

This historic plaza is complemented by a bustling
downtown offering great shopping, outdoor and
indoor dining, night life, and its famous Thursday
Night Farmers’ Market, where you can buy locally
grown fresh produce an enjoy and outdoor BBQ.

This unique blend of history, culture, commerce,
and entertainment make San Luis Obispo’s
downtown one of the most attractive, interesting,
and economically vibrant downtowns in America.

San Luis Obispo is a full-service city that provides
police, fire, water, sewer, streets, transit, parking,
planning, building, engineering, and parks and
recreation service to the community. The City
operates under the Council-Mayor-City Manager
form of government. The City Council appoints
the City Manager and City Attorney. All other
department heads are appointed by the City
Manager.

C I T Y P R O F I L E
Financial Plan Page 18

63%
In the Labor Force
23,007
Total Housing
Units
47,653
Population
(largest city in SLO County)
$61,862
Median Household
Income
Source: City Comprehensive Annual Financial Report — 2021-22 Incorporated in 1856 as
a General Law City and
became a Charter City in
1876.

39.5% 60.5%
Owned vs. Rented
Public Safety
Sworn Personnel
47 64

13.6 Square Miles
Water Supply
Salinas & Whale Rock: 4,910 AF*
Nacimiento: 5,482 AF**
Recycled Water: 291 AF
Total safe annual yield: 10,611 AF
*AF = acre feet
**Dependable Yield
The City at a Glance

C I T Y P R O F I L E
Financial Plan Page 19

34 City Council Meetings Held
136
Fire Suppression Calls
17,991
Rounds of Golf
234
City Council Agenda
Reports
587
Building Permits
Issued

MAINTAIN
28 City Parks 65 4,040
Acres of Open Space Trail Mileage
135
Miles of
Roadway
191
Miles of
Water Lines
148
Miles of Sewer
Lines
5,509
Acre Feet of
Water Consumed
83 Miles of
Bikeways
2,817
Public Parking
Spaces

MAINTAIN
8,371
Business Licenses
Issued
551
Enforcement Cases Opened
85 Contacts with
Businesses Regarding
Starting, Expanding or
282 Staying in the City
Development Permit Applications
Received
City Services Highlights
135 paved street miles
12,970
Trees in the Urban Forest
528,000
Transit Passengers
59 Newly Constructed
Deed-Restricted
Affordable Housing
Units Built in 2021 &
2022
37,960
Calls for Police Service
6,223
Calls for Fire Service
62,224
Annual
Aquatics
Attendance

C I T Y P R O F I L E
Financial Plan Page 20

Organizational Chart

THE COMMUNITY
Mayor &
City Council
Advisory
Bodies
City Manager City Attorney
Community
Services
Public Works
Utilities
Parks &
Recreation
Community
Development
Police Fire Administration
& IT Finance Human Resources

C I T Y P R O F I L E
Financial Plan Page 21

Employee Development and
Recognition
Organizational Values
Shared Mission, Vision, & Goals
Service to the Community
Leadership & Support
Communication
Team Players
Honesty, Respect, & Trust
Initiative & Accountability
Innovation & Flexibility
Stewardship & Ethics

C I T Y P R O F I L E
Financial Plan Page 22

FINANCIAL PLAN FRAMEWORK
Financial Plan Page 23

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Financial Plan Page 24

Financial Plan Framework
Budget Policies

FINANCIAL PLAN PURPOSE AND ORGANIZATION
A. Financial Plan Objectives. Through its Financial Plan, the City will link resources with results by:

1. Identifying community needs for essential services.

2. Organizing the programs required to provide these essential services.

3. Establishing program policies and goals, which define the nature and level of program services required.

4. Identifying activities performed in delivering program services.

5. Proposing objectives for improving the delivery of program services.

6. Integrate climate risk and climate action considerations throughout all financial decisions.

7. Integrate Diversity, Equity, and Inclusion (DEI) considerations throughout all financial decisions.

8. Identifying and appropriating the resources required to perform program activities and accomplish program objectives.

9. Setting standards to measure and evaluate the:
a. Output of program activities.
b. Accomplishment of program objectives.
c. Expenditure of program appropriations.

B. Two-Year Budget. Following the City's favorable experience, the City will continue using a two-year financial plan, emphasizing long-range planning and effective program management. The benefits identified when the City's first two-year plan was prepared for 1983-85 continue to be realized:

1. Reinforcing the importance of long-range (“strategic”) planning in managing the City's fiscal affairs.

2. Concentrating on developing and budgeting for the accomplishment of significant goals and objectives.

3. Establishing realistic timeframes for achieving goals and objectives.

4. Creating a pro-active budget that provides for stable operations and assures the City's long-term fiscal health.

5. Promoting more orderly spending patterns.

6. Reducing the amount of time and resources allocated to preparing annual budgets.

C. Measurable Objectives. The two-year financial plan will establish measurable program and performance objectives and allow reasonable time to accomplish those objectives.

D. Second Year Budget. Before the beginning of the second year of the two-year cycle, the Council will review progress during the first year and approve appropriations for the second fiscal year.

E. Operating Carryover. Operating program appropriations not spent during the first fiscal year may be carried over for specific purposes into the second fiscal year with the approval of the City Manager.

F. Goal Status Reports. The status of major program objectives will be formally reported to the Council on an ongoing, periodic basis.

Financial Plan Page 25

Financial Plan Framework
G. Mid-Year Budget Reviews. The Council will formally review the City’s fiscal condition, and amend appropriations if necessary, six months after the beginning of each fiscal year.

LONG - TERM FINANCIAL PLANNING
A. Balanced Budget. The City will maintain a balanced budget over the two-year period of the Financial Plan.

This means that:

1. Operating revenues must fully cover operating expenditures, including debt service.

2. Ending fund balance (or working capital in the enterprise funds) must meet minimum policy levels. For the general and enterprise funds, this level has been established at 20% of operating expenditures.

Additionally, it includes the revenue and rate stabilization reserves as set forth in the City’s fiscal policies under the Fund Balances and Reserves section.

3. Under this policy, it is allowable for total expenditures to exceed revenues in a given year; however, in this situation, beginning fund balance can only be used to fund capital improvement plan projects, or other “one-time,” non-recurring expenditures.

B. Long-Term Liabilities and Maintenance of Infrastructure. The City will give priority to applying unassigned fund-balance due to one-time expenditure savings or one-time increase in revenue to pay down long-term unfunded liabilities and invest in infrastructure and equipment.

C. Consideration of Climate Risk and Climate Action. The City is aware of the increasingly severe and frequent natural, economic, and social disruptions presented by a rapidly changing climate. The City is also aware of the financial benefits (e.g., reduced operational costs, prudent asset management, access to green bonds, etc.) of managing climate risk and orienting towards a carbon neutral municipal operations and community.

The City will include climate risk and climate action considerations in its long-term financial planning.

D. Consideration of Diversity, Equity, and Inclusion (DEI). On June 18th, 2020, the City Council took action to affirm racism as a public health crisis and committed to making San Luis Obispo a welcoming, inclusive, and safe community for everyone (R-11132). The City Council also set a vision of a community with core values of diversity and inclusivity in the adoption of its 2019-21 Major City Goals. The City is committed to supporting diversity, equity, and inclusion in is operations and in the community. The City will include DEI considerations in its long-term financial planning.

E. Revenue Stabilization Reserve – General Fund. As outlined in the City’s Fund Balance and Reserve policy, the City Council can activate a Revenue Stabilization Reserve in its General Fund to counteract any adverse revenue forecast during a period of economic uncertainties pertaining to the City’s largest tax revenue sources. For the 2023-25 Financial Plan, this reserve has been set at $2 million and is included in the long-term forecast.

FINANCIAL REPORTING AND BUDGET ADMINISTRATION
A. Annual Reporting. The City will prepare annual financial statements as follows:

1. In accordance with Charter requirements, the City will contract for an annual audit by a qualified independent certified public accountant. The City will strive for an unqualified auditors’ opinion.

Financial Plan Page 26

Financial Plan Framework

2. The City will use generally accepted accounting principles in preparing its annual financial statements and will strive to meet the requirements of the GFOA’s Award for Excellence in Financial Reporting program.

3. The City will issue audited financial statements within 180 days after year-end.

B. Interim Reporting. The City will prepare and issue timely interim reports on the City’s fiscal status to the Council and staff. This includes on-line access to the City’s financial management system by City staff; monthly reports to program managers; more formal quarterly reports to the Council and Department Heads; mid-year budget reviews; and interim annual reports.

C. Budget Administration. As set forth in the City Charter, the Council may amend or supplement the budget at any time after its adoption by majority vote of the Council members. The City Manager has the authority to make administrative adjustments to the budget as long as those changes will not have a significant policy impact nor affect budgeted year-end fund balances.

For a comprehensive list of the City’s financial policies, please see the reference section.

FISCAL POLICY COMPLIANCE
The City of San Luis Obispo has created policies and procedures that guide effective government management.

Adopting these as formal policies endures that they outlive staff changes, promoting stability and continuity. The City is currently in compliance with all policies as summarized in the chart below and in the details within the reference section of this report.

Fiscal Policy (linked to policy detail) Compliant?

1. General Revenue Management ✓

2. User Fee Cost Recovery ✓

3. Enterprise Fund Fees & Rates ✓

4. Revenue Distribution ✓

5. Investments ✓

6. Appropriations Limitation ✓

7. Fund Balances and Reserves ✓*

8. Capital Improvement Management ✓

9. Capital Financing and Debt Management ✓

10. Human Resource Management ✓

11. Contracting for Services ✓
*The City will use its operating reserve as needed in FY 2022-23 and FY 2023-24 to offset storm recovery costs but will replenish it back to the 20% reserve level, consistent with policy requirements, in FY 2024-25 (or as soon as reimbursement is collected). If full eligible reimbursement costs are not achieved (93.75% maximum from FEMA and CalOES), then reductions may need to be made in future Capital Improvement Plans in order to balance the budget.

Table 1
Financial Plan Page 27

Financial Plan Framework
Fund Structure
The City’s financial structure is separated into governmental and business activities. Five major funds are administered and reported on. Each fund balances all revenues and expenditures to ensure that there is no immediate or emerging structural budget deficit. Business activities are distinguished from governmental funds by their similarity to private sector enterprises and are financed solely through user charges.

General Fund
The General Fund is the primary operating fund for general government operations and is mostly funded through various tax revenues. It also collects service fees to recover the reasonable costs for specific services.

Sources of Fund Uses of Funds
Tax & Franchise Revenue Municipal Services
 Sales Tax  Public Safety
 Property and Lodging Tax  Parks & Recreation
 Utility User and Business Tax  Public Works
 Cannabis and Franchise Tax  Community Development
Service Fees  General Government
 Planning and Building • Administration
 Parks & Recreation Fees • City Attorney
 Public Safety Fees • HR and Finance
Water Fund – Public Utilities
The City’s Water Fund is a business-activity and is therefore funded solely through its own rates to provide service. It treats and delivers water to the public from three surface reservoirs as well as recycled water for landscape irrigation. The water service is provided to all property owners in the City including parks and sport fields.

Sources of Fund Uses of Funds
Service Fees  Sources of Supply
 Water Service Charges  Water Treatment
 Base Fee Revenue  Water Distribution
 Cal Poly Sales  Water Resources Management
 Recycled Water Sales  Administration and Engineering  Development Impact Fees  Capital Infrastructure
 Debt Financing
Financial Plan Page 28

Financial Plan Framework
Sewer Fund – Public Utilities
The City’s Sewer Fund is also a business-activity and fund and operates and maintains the City’s sanitary sewer system and the Water Resource Recovery Facility. An efficient sanitary sewer system that collects and treats wastewater provides a foundation for public health and community well-being. User fees are the primary source of revenue for this fund.

Sources of Fund Uses of Funds
Service Fees  Water Resource Recovery Facility
 Sewer Service Charges  Wastewater Collection
 Base Fee Revenue  Water Quality Lab
 Cal Poly Sales  Environmental Compliance
 Development Impact Fees  Administration and Engineering  Industrial User Charges  Capital Infrastructure
 Debt Financing
Parking Fund – Public Works
The City’s Parking Fund implements the Access and Parking Management Plan and directs the operation and maintenance of the City’s parking facilities. These facilities include parking lots in Downtown and Railroad Square, on-street parking, residential parking districts, and three parking structures. The operation is paid for by parking user fees.

Sources of Fund Uses of Funds
Service Fees  Parking Operation, Security, & Cleaning
 Parking Meters Collection  Public Education & Engagement  Parking Structure Collection  Administration
 Parking Leases  Capital Infrastructure
 Long-term Parking  Debt
 Parking in-lieu Fees
 Parking Citations/Fines
Transit Fund – Public Works
The City’s Transit Fund provides daily fixed-route transit service to the general public within City limits and to Cal Poly University. It also includes the Downtown trolley service connecting downtown with the lodging district on upper Monterey Street. The services are paid for by user fares and federal and state funding. Federal funding is subject to single audit requirements.

Sources of Fund Uses of Funds
 Federal & State Grants  Public Transit Operation
 Fare Box Revenue  Administration
Financial Plan Page 29

Financial Plan Framework
Fund Structure continued
Governmental Funds
In addition to the five major funds (general, parking, sewer, transit and water), the City maintains a fund structure to account for special revenue, capital projects, and its debt service. As the General Fund, these funds belong to the governmental activities and are distinguished by their measurement focus on determining financial position and changes in financial position according to the modified accrual method of accounting, rather than upon determining net income.

Local Revenue Measure Sub-Fund
This sub-fund to the General Fund accounts for the local 1.5-cent sales tax measure. The funding is used in accordance with the community’s priorities for services and capital improvement projects. The City’s Municipal Code under Section 3.15 – Community Services and Investment Transactions and Use Tax guides the use of the revenue and the fiscal accountability provisions.

The Revenue Enhancement Oversight Committee, as directed by Municipal Code Section 2.14, makes recommendations to the City Council regarding the use of the funding on an annual basis.

Special Revenue Funds
 Downtown Business Improvement
District
 Gas Tax Fund
 Transportation Development Act Fund
 Law Enforcement Grant Fund
 Public Art (Private Sector Contributions)
Fund
 Tourism Business Improvement District
Fund
 Avila Ranch Community Facilities
District (CFD)
 San Luis Ranch Community Facilities
District (CFD)
Capital Project Funds
 Capital Outlay Fund
 Parkland Development Fund
 Transportation Impact Fee Fund
 Open Space Protection Fund
 Airport Area Impact Fee Fund
 Affordable Housing Fund
 Fleet Replacement Fund
 Los Osos Valley Road sub-Area Fee Fund
 Information Technology Replacement
Fund
 Major Facility Replacement Fund
 Infrastructure Investment Capital Fund
Financial Plan Page 30

Financial Plan Framework
Relationship between Funds and Departments
The City’s organizational structure consists of departments performing various activities necessary for the operations of the City, while the City’s finances are reported in funds. The following table portrays the City’s departments and the sources of revenue they use to provide services.

Department
Administration/IT Community Development City Attorney FinanceFire Department Human ResourcesParks & RecreationPublic WorksPoliceUtilities General Fund x x x x x x x x x x*
Debt Service fund x
Insurance Fund x x
Water Fund x
Sewer Fund x
Whalerock Fund x
Parking Fund x
Transit Fund x
Avila and San Luis Ranch CFDs x
Public Safety Equipment Funds x x
Downtown Business Improvement District x
Gas Tax Fund x
Transportation Development Act Fund x
Law Enforcement Grant Fund x
Public Art Fund x x
Tourism Business Improvement District Fund x
Capital Outlay Funds** x
Parkland Development Fund x x
Transportation Impact Fee Funds x
Public Safety Impact Fee Funds x x
Open Space Protection Fund x x
Airport Area Impact Fee Fund x
Affordable Housing Fund x
Los Osos Valley Road sub-Area Fee Fund x
Information Technology Replacement Fund x Fund **The Public Works department manages the Capital Improvement Plan; however, the funds support capital projects for all of the departments.
*Solid Waste and Flood Control/Stormwater divisions only.

Table 2
Financial Plan Page 31

Basis of Budgeting and Accounting
Basis of Budgeting
Budgetary basis refers to the basis of accounting used to estimate financing sources and uses in the budget. The City prepares its budget for each fund in accordance with its respective basis of accounting.

The City prepares a two-year Financial Plan and appropriates a one-year budget. The City Council approves the appropriation for governmental funds and business activities (enterprise funds).

Basis of Accounting
In accordance with generally accepted accounting principles (GAAP), the City’s financial reporting system is organized on the fund basis consisting of three major fund types - governmental, proprietary, and fiduciary. The City’s various funds have been established in order to segregate and identify those financial transactions and resources associated with providing specific activities or programs in conformance with special regulations, restrictions, or limitations.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Expenditures generally are recorded when a liability is incurred; however, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Proprietary (Enterprise) funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The only type of proprietary funds that the City uses are enterprise funds for water, sewer, parking, and transit services. Within this document, they are reported under business activities.

Fiduciary funds. The City has established fiduciary funds, which are used to account for funds held by the City as an agent for private individuals, organizations or other government agencies. Unlike other types of funds, fiduciary funds only report assets and liabilities, thus they do not have a measurement focus since they do not report operating activity. However, fiduciary funds do use the accrual basis of accounting to recognize receivables and payables.

Internal Service fund. The City created an internal service fund to account for the resources needed to pay for liability, workers compensation, and other benefit-related costs. Internal service funds typically assess a fee or seek reimbursement for the amounts that are expended and are not expected to accumulate fund reserves unless needed for a future payment.

Financial Plan Page 32

STRATEGIC PLANNING
Financial Plan Page 33

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Financial Plan Page 34

Financial Planning Process
Financial Plan Process
For over thirty years, the City has used an extensive process to create its two-year financial plan and corresponding budgets. The benefits of budgeting based on a two-year plan include:

1. Reinforcing the importance of long-range (“strategic”) planning in managing the City's fiscal affairs.

2. Concentrating on budgeting to accomplish significant objectives over a multi-year period.

3. Establishing realistic timeframes for achieving
objectives.

4. Creating a proactive budget that provides for stable operations and assures the City's long-term fiscal health.

5. Reducing the amount of time and resources allocated to preparing annual budgets.

The fundamental purpose of the City’s budget process is to link, through public engagement and strategic deliberation, the interest of the community to the available financial resources to achieve the desired outcome. The process allows the City Council to engage the community in identifying strategic priorities in the form of Major City Goals while also providing information regarding the City’s established ongoing services, including the day-to-day work and responsibilities carried out by City employees to support residents’ quality of life.

Public Engagement
There are a variety of opportunities to provide input to the City Council to enable them to set the City’s strategic approach and establish Major City Goals with the community’s interest in mind. Some of these opportunities are online surveys, letters from organizations, but others take place during public meetings and the City’s community forum.

Online Survey
To kick off the financial planning process, a survey was released to ask participants if they would like to maintain the current Major City Goals (Economic Stability, Recovery and Resilience; Diversity, Equity, Inclusion; Housing and Homelessness; Climate Action, Open Space and Sustainable Transportation) or identify different priorities. A total of 1,300 survey responses were received representing nearly 65 hours of public comment. In total, 429 individuals chose to keep the current Major City Goals. The remaining 871 individuals indicated that they wanted to change priorities. If participants wished to change priorities, they were provided with previous priorities identified by the community as well as an open-ended ’Other’ option. In total, 164 individuals chose the “other” option. Staff reviewed all responses, and the chart on the next page captures the top ten themes of those responses.

Major City Goals represent the
most important, highest
priority goals for the City to
accomplish over the next two
years, and as such, resources
should be included in the 2023-
25 Financial Plan.

Financial Plan Page 35

Financial Planning Process
Community Forum
A Financial Plan focused Community forum was held on January 26, 2023 at the Ludwick Community Center in San Luis Obispo. Over 200 community members participated in person and virtually online. The forum included a walk-through environment and nine interactive booths to converse with City staff and other community members. New this year, was a switch to a digital approach to receiving community feedback. Attendees were able to scan a QR code on their phone or with the support of staff, rank potential ways that the City could achieve any of the potential Major City Goals. Additionally, attendees were also able to submit other ideas that weren’t included in the ranking process if they felt that there was something else the City should address. The meeting concluded with public comment.

After the forum, the community feedback and ranking of priorities was compiled and presented to Council at the all-day goal-setting workshop held on Saturday, February 11, 2023. The results can be found at www.slocity.org.
164
238
299
377
387
426
438
454
533
537
694
0 100 200 300 400 500 600 700 800
Other
Diversity, Equity, and Inclusion
Public Safety
Fiscal Sustainability and Responsibility
Sustainable and Multi-Modal Transportation
Climate Action
Housing
Downtown Vitality
Open Space
Infrastructure Maintenance
Homelessness
Chart F1: Priorities from Participants Who Wished to Change Goals Financial Plan Page 36

Financial Planning Process
Local Revenue Measure Annual Citizen Oversight Meeting & Advisory Body Input The Community Forum also met requirements related to oversight of the City’s one-and-a-half percent local sales tax, by providing an opportunity for the Revenue Enhancement Oversight Committee (REOC) to review and discuss the use of the revenue generated by the Local Revenue Measure with the community.

The community set the spending priorities for the measure funding as (not numbered by priority): 1) Protect Financial Stability, 2) Community Safety and Emergency Preparedness, 3) Creek and Flood Protection, 4) Address Homelessness, 5) Safe and Clean Public Spaces, 6) Economic Development and Business Retention, 7) Youth/Senior Services and Recreation Facilities, 8) Street Maintenance and Transportation, 9) Open Space/Natural Areas Preservation and Maintenance, 10) Other Services and Projects.

Photos from the 2023-25 Community Forum held on January 26, 2023 at the City’s Ludwick Community Center.

Goal Setting Workshop
The final phase of goal setting process is deciding on the highest priority goals for the City to accomplish over the next two years. For the 2023-25 Financial Plan, the City Council chose four focused Major City Goals (details on goals included on page 40).

Economic Resiliency,
Cultural Vitality, and
Fiscal Sustainability
Diversity, Equity &
Inclusion (DEI)
Housing &
Homelessness
Climate Action, Open
Space & Sustainable
Transportation
Financial Plan Page 37

Financial Planning Process
Budget Calendar
November 15, 2022: Setting the Stage
Provide Council with the framework for
the two-year financial plan and present an
update on the City’s fiscal status, general
plan, and Major City Goal work programs.

January 10, 2023: Budget Foundation
Review with Council the goal setting
process, approve City’s budget and fiscal
policies, discuss economic outlook, and
review current and long-term capital
outlook plan.

January 26, 2023: Community Forum
Council Meetings
February 11, 2023: Council Goal-Setting
Workshop
Review and prioritize goals and establish
strategic priorities for the 23-25 Financial
Plan.

April 18, 2023: Strategic Budget Direction
Provide feedback and guidance to City
Manager and staff regarding the draft
budget allocations and Major City Goal
work programs.

June 6, 2023: Preliminary Budget
Review 2023-25 Financial Plan and 2023-
24 Budget and adopt if there are no
changes directed by Council.

June 20, 2023: Final Adoption of Budget (if
needed)

NOVEMBER
2022
JUNE 2023
Community Surveys
Advisory Bodies
Letters from
Community Groups
Public Comment
Public Engagement
Community Forum

FINANCIAL PLANNING

FINANCIAL PLANNING
Staff Budget
Preparation
Revenue & expenditure
forecasts
Departments prepare base
budgets and propose
operating changes.

Draft MCG work programs
Draft Capital Improvement
Plan
Prepare Financial Plan
Document
Post Budget Adoption Changes: As set forth in the City Charter, the Council may amend or supplement the budget at any time after its adoption by majority vote of the Council members. The City Manager has the authority to make administrative adjustments to the budget as long as those changes will not have a significant policy impact nor affect budgeted year-end fund balances.

Financial Plan Page 38

Strategic Priorities
Strategic initiatives guiding the 2023-25
Financial Plan

City Council Vision Statement
The City of San Luis Obispo is a dynamic community embracing its future while respecting its past with core values of civility, sustainability, diversity, inclusivity, regionalism, partnership, and resiliency.

In the planning process we are
committed to:
• Being honest and respectful in
our discussions.
• Participating with active
listening and respectful
challenging
• Believing in the process and the
outcome
• Allowing for differences
• Learning from the past
• Making the process and
progress visible
• Committing to transparency
around priorities
• Engaging the public
With the plan we are committed to:
• Creating a clear plan with agreed upon
purposes.
• Making sure our stated values are clear.
• Making defining, concrete statements
• Including measurables, budgets, and
timelines for all items
• Making the plan accessible
In implementation we are committed to:
• Doing what we say
• Remaining open to new information, new
ideas, and public input
• Scheduling bi-annual updates with
Council on progress
• Considering emerging issues
Financial Plan Page 39

Strategic Priorities
MAJOR CITY GOALS (MCGs)

Goal Statements (not numbered by priority)

1. Economic Resiliency, Cultural Vitality and Fiscal Sustainability In collaboration with local partners, implement initiatives that reinforce a thriving and sustainable local economy, support a diverse, inclusive, and vibrant community, preserve arts and culture, and ensure fiscally responsible and sustainable city operations.

2. Diversity, Equity, Inclusion (DEI)
Further our commitment to making San Luis Obispo a welcoming and inclusive city for all by continuing to incorporate diversity, equity, and inclusion into all programs and policies and advancing the recommendations of the DEI Task Force.

3. Housing and Homelessness
Support the expansion of housing options for all, and continue to facilitate the production of housing, including the necessary supporting infrastructure, with an emphasis on affordable and workforce housing as well as accessibly connected development.

Collaborate 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.

4. Climate Action, Open Space, and Sustainable Transportation Proactively address the climate crisis and increase resiliency through the implementation of the Climate Action Plan. Use resources to reduce greenhouse gas emissions and reach carbon neutrality by 2035, with a focus on the preservation and enhancement of convenient and equitable alternative and sustainable transportation, the preservation of open space, and equitable access to parks and open space.

Financial Plan Page 40

Strategic Priorities
Major City Goals in the 2023-25 Financial Plan
The four Major City Goals for the 2023-25 Financial Plan cover the same areas as the 2021-23 Financial Plan with modified work programs to fit current community needs and available resources. Most efforts from the 2021-23 Financial Plan will continue into 2023-25. Some 2021-23 work program tasks that are ongoing in nature and have been operationalized have been removed from the work programs and have been incorporated in the departments’ base budget and normal operations or core services. The strategy behind the more consolidated 2023-25 work programs is that simplicity brings about focus and will allow the organization to emphasize and prioritize action items that are most important to the community and achievable with the available resources. The challenge with moving some 2021-23 work program tasks to operations is that there may be less council and community visibility on efforts that generally support Major City Goals.

Budgeting to Accomplish Major City Goals
In the past, the City has tried to quantify all of its efforts towards Major City Goals through the use of budget
allocations; however, this is an imperfect method and
dilutes the purpose behind setting Major City Goals. Major City Goals are intended to guide strategic direction for the City, and while it is important to understand that there is a fiscal impact to deliver goals; the budget cannot always be used as a measurement tool, as budget allocations do not necessarily reflect the level of work and focus on identified goal areas. Over the last seven years, the City’s most
important goals have stayed relatively consistent and because of that, the City has been able to create ongoing work programs and structures that help to achieve the goals on top of delivering core services.

Programs such as DEI, Housing and Homelessness, and the Mobile Crisis Unit are now part of ongoing City operations. More broadly, all departments provide some degree of internal support to the lead departments in achieving Major City Goal efforts.

The Major City Goal work programs highlight which work efforts require new funding and the associated funding can be found in the operating and capital budget sections of the Financial Plan. The rest of the identified work program tasks will be executed using existing resources. The operating program writeups link department goals with the overarching Major City Goals and identify involvement in achieving goals.

Major City Goal Reader’s Guide (for next section)
The following sections for each Major City Goal include:

1. Goal Overview – The overview section includes: MCG Goal Statements, expectations, responsible departments, and strategic approaches.

2. MCG Task Detail – The second section for each goal includes the specific tasks/actions associated with each goal.

Financial Plan Page 41

Strategic Priorities: ER,CV & FS

1. Economic Resiliency, Cultural Vitality & Fiscal Sustainability (ER,CV & FS) Goal Statement: In collaboration with local partners, implement initiatives that reinforce a thriving and sustainable local economy, support a diverse, inclusive, and vibrant community, preserve arts and culture, and ensure fiscally responsible and sustainable city operations.

Expectations: The City will engage and expand up on its community partnerships and invest in infrastructure, promotion, programs, and polices that support the economic resiliency and cultural vitality of the community while ensuring fiscal sustainability. Additional focus will be placed on the retention and expansion of existing businesses, the vitality of arts and culture, the vitality of the downtown, and supporting underserved groups and populations. Additionally, all actions will be viewed through the lens of the City’s Sustainability and DEI efforts.

Stakeholders/Responsible Departments: For the purposes of MCG administration, monitoring, and reporting, Administration is the lead department. However, the Economic Resiliency, Cultural Vitality & Fiscal Sustainability (ERCS&FS) MCG will require the support and engagement from all City departments with special focus provided by Community Development, Public Works and Parks and Recreation Departments. The City will also continue to engage current partners like the Chamber, Downtown SLO, REACH, SLOMA, SLOREP, Cal Poly, Cuesta and other existing and new partners to support our efforts.

Strategic Approach:

Strategy 1.1 – Sustainable, Diverse, and Inclusive: The City will ensure that the economic resiliency and cultural vitality efforts are focused on sustainability, diversity and inclusion in alignment with both the City’s Sustainability program and the Diversity, Equity, and Inclusion program.

Strategy 1.2 – Business Support: The City will support the SLO business community through a mix of traditional and non‐traditional economic development efforts. The efforts will include but not be limited to business expansion, retention, attraction, promotion and programs for new and existing businesses. In addition, the City will focus on efforts to make it easier for employers and employees by continuing to focus on permit processing improvements and childcare.

Strategy 1.3 – Downtown Vitality: The City will support the unique needs of the downtown through specific promotional efforts, support services, cleanliness & safety programs and infrastructure investment.

Strategy 1.4 – Support Arts and Culture: The City will support the vitality of the Arts and Cultural activities within the City by working with existing and new community partners.

Strategy 1.5 – Ensuring Fiscal Responsibility and Sustainable City Operations: The City will continue to focus fiscal responsibility and sustainability through all work efforts, programs, and the required budget appropriations. It will review its revenue sources ongoingly and maximize collection and return on its investments. In addition, based on the results of the 2023 Employee Engagement Survey, there will be continued focus to support and prioritize workforce development to ensure City employees have the tools and resources to effectively serve the community.

Specific tasks listed on next page.

Financial Plan Page 42

Strategic
Approach #  Task/ Action Status (if in progress already) Responsible  Department(s) New  Funding Completion  Date

1.1 Sustainable, Diverse, and Inclusive Economic Development1.1 a. Implement the relevant actions in the updated Economic Development Strategic Plan (EDSP) focusing on those relevant to Economic Resiliency, Cultural Vitality and Fiscal Sustainability.

The EDSP update is in progress and expected
to come to Council in July 2023 for approval.  ADM (ED&T) x Ongoing

1.1 b. Continue to partner with the Office of Sustainability to implement the economic development related actions in the Climate Action Plan (CAP) as well as the sustainability related actions in the updated Economic Development Strategic Plan (EDSP) The Office of ED&T and the Office of
Sustainability will continue to coordinate the
relevant activities.

ADM
(ED&T/Sustainability) Ongoing

1.1 c. Continue to partner with the Office of Diversity, Equity and Inclusion (DEI) to implement the economic development related actions in the DEI major City goal and planned DEI strategic framework as well as the DEI related actions in the updated Economic Development Strategic Plan (EDSP) The Office of ED&T and the Office of  DEI will
continue to coordinate the relevant activities.  ADM (ED&T/DEI) Ongoing

1.1 d. Continue to monitor local labor participation in major City projects and adjust the City's efforts as needed to ensure local labor participation through the use of Community Workforce Agreements and other similar tools. Work to finalize CWA for Prado Overpass and Public Safety Center.

The program to monitor the local labor
participation as well as the policy
development for the use of CWA's has been
implemented.

PW/Util Ongoing

1.1 e. Continue to update the employment scorecard and the economic activity scorecard.

The employment report card is developed
and is available to be continued if funded.

The economic activity scorecard is 75%
complete and will be complete and
operational by the end of the fiscal year.

ADM
(ED&T)/CDD/PW/FIN x Ongoing

1.2 Business Support1.2
a. Continue activations, promotions and  programs like  "Buy Local Bonus", "Eat Local Bonus" and "Shop local" to build economic resiliency  through out the City and including downtown.

The main programs are established but
unfunded on an ongoing basis. Additional
funding is being requested to expand the
potential programs.

ADM (ED&T) x Ongoing

1.2 b. Continue to work with partners at the Chamber, REACH, Cal Poly, Downtown SLO, SCORE and others to support the business community through retention, creation, attraction, education and communication efforts.

Ongoing work effort. ADM (ED&T) Ongoing

1.2 c. Continue to promote the City to tourists, visitors and locals through the efforts of the  TBID and the PCC.  Ongoing work effort. ADM (ED&T) Ongoing

1.2 d. Continue to focus on efficiency and transparency in the permitting process through implementation of new tools, performance management reporting, and enhanced customer transparency tools.  Report recurring performance measures or permit processing times during General Plan Annual Report.

Ongoing work effort. CDD Ongoing

1.2 e. Ensure broad and inclusive engagement in area and specific plans updated by the  Community Development Department to represent the needs of local businesses.  Ongoing work effort. ADM (ED&T)/CDD Ongoing1.2 f. Conduct outreach and engagement with property owners and businesses in the Upper Monterey Special Focus Area to confirm scope in pursuing an area plan consistent with Land Use Element Policy 8.2.2.

New work effort CDD FY 25 Q4

1.2 g. Continue to support new and expanded private childcare options through the use of  grant funding and other programs.  Ongoing work effort. ADM (ED&T) Ongoing Table M-1. Economic Resiliency, Cultural Vitality & Fiscal Sustainability Major City Goal Work Program Strategic Priorities: ER,CV & FS
Financial Plan Page 43

Strategic
Approach #  Task/ Action Status (if in progress already) Responsible  Department(s) New  Funding Completion  Date Table M-1. Economic Resiliency, Cultural Vitality & Fiscal Sustainability Major City Goal Work Program

1.2 h. Continue to support the childcare options for school age children through the City's  own programs and programs in conjunction with other partners.  Ongoing work effort. P&R Ongoing1.2 i. Proactively evaluate and implement after briefing council on opportunities to partner with Cal Poly, San Luis Coastal Unified School District and other major employers for employer supported childcare programs.

New work effort. P&R Ongoing

1.2 j. Represent the interests of the business community during the implementation of the  broadband strategic plan.  Ongoing work effort. ADM (ED&T) Ongoing

1.3 Downtown Vitality1.3 a. Continue to partner with Downtown SLO to ensure the promotion, resiliency, growth,  and vitality of the Downtown.  Ongoing work effort. ADM (ED&T) Ongoing

1.3 b. Continue to financially and operationally support Downtown SLO during the winter  holidays including incentivizing private participation through the matching program. Ongoing work effort. ADM (ED&T) Ongoing

1.3 c. Continue to support the Downtown SLO programs like Clean & Safe, the Ambassadors  and homelessness support.  Ongoing work effort. ADM (ED&T) Ongoing

1.3 d. Develop a Council report and Study Session on downtown vacancies, the status and  possible options to address any issues identified. New work effort. ADM (ED&T) FY24 Q2

1.3 Develop an implementation plan for the recently adopted Access and Parking  Management Plan and begin execution of the plan. Ongoing work effort. PW Ongoing1.3 f. Begin construction of the Cultural Arts District Parking Structure. Ongoing work effort. PW FY24 Q2

1.3 g. Replace the existing Mission Plaza Restrooms in compliance with Mission Plaza  Concept Plan and Council Direction. Ongoing work effort. PW Ongoing

1.4 Support Arts and Culture1.4 a. Continue to work with our community partners to ensure the Cultural Vitality of the  City. Ongoing work effort. P&R/ADM  (NR&S)/ADM (ED&T) Ongoing

1.4 b. Continue to execute  the City's public art master plan.  Ongoing work effort. P&R Ongoing1.4 c. Ensure that the City promotes the various City and privately owned art installations  through programs like the public art promotional plan developed by the PCC. Ongoing work effort. ADM (ED&T) Ongoing

1.4 d. Continue to financially support the Arts and Cultural Activities of the City through the  PCC's GIA program and the additional grant funding via the PCC. Ongoing work effort. ADM (ED&T) x Ongoing

1.4 e. Continue the citywide banner program.  Ongoing work effort.ADM (ED&T) xOngoing

1.4 f. Continue to support the preservation of the City's adobes, including work on the La Loma Adobe through a phased approached intended to ensure that the structure is ready for active stabilization efforts by 2025.

Ongoing work effort. ADM (NR&S) x FY25 Q4

1.4 g. Initiate implementation of the consultant recommended phased approach to update  the City's historic resources inventory. New work effort. CDD x FY24 Q2 Strategic Priorities: ER,CV & FS
Financial Plan Page 44

Strategic
Approach #  Task/ Action Status (if in progress already) Responsible  Department(s) New  Funding Completion  Date Table M-2. Economic Resiliency, Cultural Vitality & Fiscal Sustainability Major City Goal Work Program

1.4 h. Develop a Council Memorandum on the current base level of economic support for  Arts and Cultural activities across the various departments in the City.  New work effort. ADM (ED&T) FY24 Q21.5 Ensuring Fiscal Responsibility and Sustainable City Operations

1.5 Continue to implement and enhance the City's sound financial management practices to  support stability of the organization and services provided to the community. Ongoing work effort. Fin Ongoing

1.5 b. Conduct a Study Session on alternative capital project delivery options and determine  whether Council wishes to proceed with a Charter Amendment.  New work effort. PW/Util FY24 Q4

1.5 c. Implement a City fee program update. New work effort. CSG FY24 Q3

1.5 d. Implement a Development impact fee (AB1600) study and update.  New work effort. CSG FY24 Q3

1.5 e. Monitor Public Banking advances and alert the City Council to major changes.  New work effort. Fin Ongoing

1.5 f. Continue to support and prioritize employee development and growth through  investing in resources to train, develop, and onboard new and transitioning employees. Ongoing work effort. HR/All Ongoing

1.5 g. Continue to support employees in managing their workloads by reviewing and  prioritizing work efforts, goals, and balancing trade‐offs for a new workload. Ongoing work effort. HR/All Ongoing

1.5 h. Continue to evaluate and adjust internal meetings to create more effective meeting  practices. Ongoing work effort. HR/All Ongoing

1.5 i. Continue promoting cross‐department communication and collaboration amongst employees. Ongoing work effort. HR/All Ongoing

1.5 j. Continue to evaluate and enhance the training and usability of Oracle Cloud, the City's  Enterprise Resource Planning/Human Capital Management software. Ongoing work effort. IT/Fin/HR Ongoing Strategic Priorities: ER,CV & FS
Financial Plan Page 45

Strategic Priorities: DEI

2. Diversity, Equity and Inclusion (DEI)
Goal Statement: Further our commitment to making San Luis Obispo a welcoming and inclusive city for all by continuing to incorporate diversity, equity, and inclusion into all programs and policies and advancing the recommendations of the DEI Task Force.

Expectations: The City will engage in initiatives that advance DEI within the organization and community:

1. Develop and implement strategies, programs, and policies that build a workplace culture and community of inclusion, fairness, and belonging for all.

2. Involve underserved/underrepresented communities and diverse voices in program development and delivery to ensure current lived experiences drive understanding, priorities, and efforts.

3. Partner with proven community providers and utilize best practice and innovative models to leverage City resources and maximize effectiveness and impact of initiatives.

4. Identify and track measurable results as the City progresses in maturing diversity and inclusion efforts.

Stakeholders/Responsible Departments: Administration, Human Resources, Police, Park & Recreation, Public Works. All Departments share responsibility for supporting and prioritizing DEI initiatives to advance the City’s strategies, ambition, and goal.

Strategic Approach:

Strategy 2.1 – Operationalize Office of DEI: Continue the ongoing commitment to meaningful, structural, and lasting operationalization of DEI strategies and efforts with the organization and the community.

Further develop and strengthen equity, inclusion, cultural awareness and humility by creating activities, outreach, programs that enhance skills and knowledge. Enhance partnerships and provide support to departments in embedding DEI in all practices, policies, and processes throughout the organization.

Strategy 2.2 – Develop & Implement DEI Strategic Plan: Create a comprehensive and adaptable Strategic Plan by utilizing the DEI Task Force Recommendations as foundation, and other key community documents for reference and benchmarking. Roll out and implement the DEI Strategic Plan ensuring qualitative and quantitative data outcomes and metrics are embedded in program and project implementation.

Strategy 2.3 – Foster and Promote Equitable Recruiting, Hiring, Retention, and Promotion Practices:

Develop and implement innovative and proven strategies, programs, and policies that successfully attract, engage, retain, develop, and support a diverse workforce. Emphasize the development of internal candidates, broaden outreach, recruitment, advertising, and remove screening and selection bias in hiring processes.

Strategy 2.4 – Enhance Inclusive & Equitable Workplace Environment: Enhance and expand a welcoming and inclusive environment where all employees feel valued and included. Develop and implement DEI training and professional development, remove barriers from learning by developing interpersonal connections, improving and increasing dialogue and communication, integrating DEI into department’s operations, and growing interest in DEI practices among all employees.

Financial Plan Page 46

Strategic Priorities: DEI
Strategy 2.5 – Community-based Policing & Restorative Practices: Identify strategies that promote best alternative methods to policing and provide the community voice for structural change. Enhance and maintain cultural humility and DEI trainings for officers to build and support understanding, strengthen relationships, and intentionally center the needs of the BIPOC and diverse communities.

Strategy 2.6 – Enhance and Expand Cal Poly & Cuesta College Partnerships & Educational Opportunities:

Increase shared programming, training, community-building resources, and collaborative planning to enhance access and belonging for all City residents. Increase educational and cultural event offerings to the community at large, and convene regular roundtable meetings with the City, Cal Poly, Cuesta College leadership and students.

Strategy 2.7 – Strengthen Public Access and Engagement Through Transformational Strategies: Increase access and engagement for the public by enhancing and diversifying internal practices that reflect understanding, cooperation, and meaningful participation of staff. Sponsor and support outreach activities and experiences that highlight the City’s historically marginalized populations and create safe and brave spaces for all communities.

Strategy 2.8 – Equity & Inclusion in Budgeting, Planning, Programming & Policymaking: Focus efforts in reviewing and incorporating DEI language and lens into budgeting, planning, programming, and policymaking processes and practices that define City initiatives and strategies. Continue to provide support to departments and community organizations to diversify DEI applications based on available resources. Embed DEI staff into City leadership group opportunities to further expand and influence practice.

Specific tasks listed on next page.

Financial Plan Page 47

Strategic
Approach #  Task/ Action Status (if in progress already) Responsible  Department(s) New  Funding Completion Date

2.1 1. Operationalize Office of DEI2.1
a. Based on the completion of the DEI Strategic Plan, determine the ongoing supportstructure needed in the Office of DEI to optimally deliver organizational and communityprograms and services.

Ongoing work effort Admin‐DEI Ongoing

2.1 b. Work with Cal Poly and Cuesta to host interns. Ongoing collaboration with Cal Poly to  establish this effort. Admin‐DEI Ongoing2.1 c. Further develop purpose, role, activities, and enhance impact of DEI Employee Committee, including equal standing and priority to tasks and responsibilities assigned to the members (e.g. ERGs, newsletters, cultural celebrations, trainings, internal communication, public web pages, etc.).

Ongoing work effort to establish charter
and functions for the committee. Admin‐DEI Ongoing

2.1 d. Continue to support and act as the staff liaison to the Human Relations Commission (HRC).

2.1 e. Continue to provide grant support to the HRC for DEI High Impact Grants, CommunityDevelopment Block Grants and Human Services Grants and complete necessary follow up and reporting with grant recipients.

Ongoing work effort Admin‐DEI Ongoing

2.2 2. Develop & Implement DEI Strategic Plan2.2
a. Complete a DEI Strategic Plan for comprehensive DEI initiatives and programming for the organization and community based on needs, priorities, and resource assessments.

Ongoing work effort. A framework is to
be developed based on the DEI
Taskforce's recommendations.

Admin‐DEI FY 23‐24 Q2/Q3

2.2 b. Implementation of prioritized programs as outlined in the DEI Strategic Plan within available resources.

Ongoing implementation of elements
approved by the DEI Strategic plan to
begin in Fall of 2023 and early Winter of
2024.

Admin‐DEI Ongoing

2.3 3. Foster and Promote Equitable Recruiting, Hiring, Retention, and Promotion Practices2.3 a. Continue to enhance job descriptions and recruiting materials such as materials in  Spanish or in different formats to easy access.  Ongoing work effort HR Ongoing2.3 b. Assess and develop enhancements processes such as implementing DEI‐focused  screening and interviewing trainings to personnel and interview panels. Ongoing work effort HR Ongoing2.3 c. Create and rollout DEI‐focused trainings for employees. Ongoing work effort HR Ongoing

2.3 d. Examine policies and programs to support primary caretakers. Ongoing work effort HR Ongoing2.3 e. Continue communicating childcare options and resources for City employees; additional to First 5 findings. Explore flex schedules, job share, remote options, etc. Ongoing work effort HR Ongoing

2.4 4. Enhance Inclusive & Equitable Workplace Environment2.4 a. Develop and adopt a DEI statement for the organization. Ongoing work effort Admin‐DEI FY 23‐24 Q1

2.4 b. Develop and implement a DEI module in new hire onboarding process. Ongoing work effort HR Ongoing

2.4 c. Provide DEI‐related training for all staff of all levels (Council, Commission, Advisory Board, Directors, Managers, Staff, etc.). Ongoing work effort Admin‐DEI/HR Ongoing2.4 d. Complete a planning study for gender‐inclusive restroom and sleeping facilities for Fire Stations 3 & 4. Procees with design work pending results of study.

Ongoing work effort with Public Works
to determine feasibility and
implementation.

Public Works/Fire Ongoing
Table M‐2: Diversity, Equity, Inclusion Major City Goal Work Program Strategic Priorities: DEI
Financial Plan Page 48

Strategic
Approach #  Task/ Action Status (if in progress already) Responsible  Department(s) New  Funding Completion Date Table M‐2: Diversity, Equity, Inclusion Major City Goal Work Program

2.5 5. Community‐based Policing & Restorative Practices

2.5 a. Promote DEI best practices in Police Department (PD) recruting and hiring efforts. Ongoing work effort in collaboration  with Admin‐DEI, PD, and HR Admin‐DEI/PD/HR Ongoing

2.5 b. Work in partnership with Facilities and PD to ensure new public safety building design is equitable and inclusive for the community and all department employees.

Ongoing work effort in collaboration
with Admin‐DEI, PD, and Public Works Admin/PD/Public Works Ongoing

2.5 c. Continue to work with community partners (PAC and Roundtable) to give the community a voice in policing and that 21st Century Policing Recommendations areimplemented where possible.

Ongoing work effort PD Ongoing

2.5 d. Use Community partnerships to help build a 5‐year strategic plan to create transparency and legitimacy. Ongoing work effort PD Ongoing

2.6 6. Enhance and Expand Cal Poly & Cuesta College Partnerships and Educational Opportunities

2.6 a. Establish bimonthly collaborative and informative meetings with Cal Poly Office of University Diversity & Inclusion and Cuesta College Office of Student Equity & Special Programs to futher explore partnerships around education and training. Ongoing work effort Admin‐DEI Ongoing

2.6 b. Utilize the Assistant VP for Strategic Planning and Network at Cal Poly OUDI to research best practices, grants for interships, programs, outreach, innovative practices, etc. Ongoing work effort Admin‐DEI Ongoing

2.6 c. Host City/Cal Poly quarterly roundtable (City & Cal Poly leadership, DEI Employee Committee, HRC, Cal Poly students, DEI Leaders, Cuesta College, etc.) regarding community/student experience, relationship‐building and partnership programs.

Ongoing work effort Admin‐DEI Ongoing

2.6 d. Explore and develop shared multicultural programming, activities, and events with Cal Poly, Cuesta College, and Non‐profit partners through a pilot and/or pop up multicultural center experience.

Ongoing work effort Admin‐DEI Ongoing

2.6 e. Contract to develop a feasbility study for a mulitcultural center. Ongoing work effort Admin‐DEI Ongoing

2.7 7. Strenghten Public Access and Engagement through Transformational Strategies2.7 a. Support the development and implementation of the Broadband Strategic Plan to ensure access is equitable and pursue funding to fill gaps.

Ongoing work effort in collaboration
with the IT Department to reach out to
various communities.

Admin‐DEI/IT
Ongoing

2.7 b. Continue to provide Community Academy program in even numbered years including application outreach to underserved/underrepresented communities. Ongoing work effort Admin‐DEI Ongoing

2.7 c. Complete training for applicable staff on the City's updated Public Engagement &  Noticing (PEN) to ensure diverse participation. Ongoing work effort Admin‐DEI Ongoing

2.8 2.8 Equity & Inclusion in Budgeting, Planning, Programming & Policymaking2.8 a. Review and embed DEI language into existing policies and procedures, codes of conduct within facilities, parks, programs, events, and rentals for services provided to the community.

New work effort Admin‐DEI Ongoing

2.8 b. Include DEI Manager Financial Planning Steering Committee meetings. New work effort Admin‐DEI Ongoing

2.8 c. Edit existing and create new policies and procedures that reflect a DEI lens for internal processes to ensure all City Departments support the DEI MCG. New work effort Admin‐DEI Ongoing Strategic Priorities: DEI
Financial Plan Page 49

Strategic
Approach #  Task/ Action Status (if in progress already) Responsible  Department(s) New  Funding Completion Date Table M‐2: Diversity, Equity, Inclusion Major City Goal Work Program

2.8 d. Provide financial assistance to qualified families through City funded scholarships foryouth related programs such as: before/after‐school childcare, spring break & summer camps, swim lessons, and after‐school sport programs.

Ongoing work effort Parks & Rec X Ongoing
Members of the City's DEI Committee
Strategic Priorities: DEI
Financial Plan Page 50

Strategic Priorities: Housing and Homelessness

3. Housing and Homelessness
Goal Statement: Support the expansion of housing options for all, and continue to facilitate the production of housing, including the necessary supporting infrastructure, with an emphasis on affordable and workforce housing as well as accessibly connected development. Collaborate 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.

Expectations: The City will prioritize Housing Element policies and programs that focus on facilitating the increased production of housing; the City will implement the Homelessness Response Strategic Plan and engage with the community, regional agencies, local non-profit partners, and the Federal government to leverage resources to be utilized to implement strategies that reduce homelessness; the City will cleanup creeks, open space areas, City Parks and public spaces associated with abandoned personal property and trash; and the City will focus on public safety through support for the SLO PD bike patrol program and new Community Service Officer program.

Housing Element Implementation

1. Initiate a missing middle housing program that enables "house-scale" multi-family housing opportunities (duplex, tri-plex, bungalow court, etc.) in to be identified neighborhoods where existing infrastructure (e.g., arterial and collector streets, complete neighborhoods) can support additional infill and intensification.

2. Initiate an update to the Margarita Area Specific Plan to include more housing options of all types (affordable, multi-family, mixed-use) on undeveloped land, and work with property owners on a plan for the completion of the Prado Road extension to Broad Street.

3. Initiate an update to the Airport Area Specific Plan to allow mixed-use residential development, where appropriate and consistent with the County Airport Land Use Plan.

4. Conduct a Study Session with the City Council to identify needs and opportunities across the housing spectrum, including various types of transitional and supportive housing options.

5. Implement Below Market Rate Housing best practices including leveraging affordable housing fund revenues, down payment assistance programs, streamlined processing of loan documents, and updated policies and procedures.

Homelessness Response Strategic Plan Implementation

1. Work collaboratively with County and key stakeholders to coordinate regional encampment and street outreach, including an expanded hotel voucher program to ensure a bridge for temporary emergency shelter.

2. Increase homelessness response communications, resource sharing, and education, including increasing use of Ask SLO app.

3. Expand implementation of digital encampment management tool internally and for potential countywide use.

4. Leverage additional funding from other partner agencies for Mobile Crisis Unit (MCU) program, and Community Action Team (CAT) and service expansion; develop sustainable safe parking programs; and pilot additional transitional shelter programs with regional partners.

Financial Plan Page 51

Strategic Priorities: Housing and Homelessness

5. Support County and regional partners in pursuing and implementing funding if successful for resources for services, and transitional and permanent supportive housing, including Encampment Resolution Funding and Project Homekey grants.

6. Continue to develop the City's Safe Housing Outreach and Education Program, including preparation of a Council Memo on options for protecting renters, including homelessness prevention strategies.

7. Monitor and update the two-year Homelessness Response Strategic Plan to align with Countywide Plan to Reduce Homelessness, other regional and state opportunities, and in advance of next City financial plan.

Environmental Clean-up

1. Environmental clean-ups in creek and open space areas associated with abandoned personal property and trash.

2. Environmental clean-ups in City Parks and public spaces associated with abandoned personal property and trash.

Public Safety

1. Maintain SLOPD bike patrol program as staffing allows.

2. Implement the new Community Service Officer program over the next fiscal year to ensure effectiveness and improvements in quality-of-life surrounding homelessness issues in the downtown.

Stakeholders/Responsible Departments: For the purposes of MCG implementation, administration, monitoring, and reporting, Community Development is the lead department. However, several of the tasks outlined in the MCG will include the participation of the following City Departments: Administration, City Attorney, Police, Public Works, Parks and Recreation, and Fire.

The City will also engage with the following stakeholders to support Housing and Homelessness efforts including, but not limited to:

1. Residents

2. Homeless individuals and families

3. Homeless advocates

4. Business/Property Owners

5. Chamber of Commerce

6. Economic Vitality Corporation (EVC)

7. Social service agencies

8. San Luis Obispo County Housing Trust Fund (HTF)

9. Affordable housing and market rate developers

10. Non-profit organizations

11. Owners and renters of affordable housing in the City

12. Homeless Services Oversight Council (HSOC)

13. County of San Luis Obispo Administration, Behavioral Health, and other key regional partners

14. Mid and Large-Scale Employers

15. Faith-based organizations
Financial Plan Page 52

Strategic Priorities: Housing and Homelessness
Strategic Approach:

Strategy 3.1 – Housing Element Implementation: Implement the 6th Cycle Housing Element with focus on a missing middle housing program that enables "house-scale" multi-family housing opportunities (duplex, tri-plex, bungalow court, etc.) in select neighborhoods. Initiate updates to the Margarita Area and Airport Area Specific Plans to include more housing options of all types where appropriate and consistent with the County Airport Land Use Plan. Conduct a Study Session with the City Council to identify needs and opportunities across the housing spectrum and implement Below Market Rate Housing best practices.

Strategy 3.2 – Homelessness Response Strategic Plan (HRSP) Implementation: Implement the recently adopted HRSP with a focus on regional collaboration, communication, data sharing, pilot programs and funding opportunities to prevent and address homelessness. Continue to develop the Safe Housing Outreach and Education Program, including preparation of a Council Memo on options for protecting renters. Monitor and update the HRSP to align with Countywide Plan to Reduce Homelessness, other regional and state opportunities, and in advance of the next City financial plan.

Strategy 3.3 – Environmental Clean-up in Creeks and Open Space: Environmental clean-ups in creeks, open space areas, City Parks and public spaces associated with abandoned personal property and trash.

Strategy 3.4 – Public Safety: Maintain the SLOPD bike patrol program as staffing allows and implement the new Community Service Officer program to ensure effectiveness and improvements in quality-of-life surrounding homelessness issues in the downtown.

Specific tasks listed on next page.

Financial Plan Page 53

Strategic
Approach #  Task/ Action Status (if in progress  already) Responsible  Department (s) New Funding Completion Date

3.1 Housing Element Implementation3.1
a. Initiate a missing middle housing program that enables "house‐scale" multi‐family housing opportunities (duplex, tri‐plex, bungalow court, etc.) in neighborhoods where existing infrastructure (e.g. arterial and collector streets) can support additional infill and intensification and promote complete neighborhoods.

Ongoing work effort CDD; Attorney FY 25 Q4

3.1 b. Initiate an update to the Margarita Area Specific Plan to include more housing options of all types (affordable, multi‐family, mixed‐use) on undeveloped land, and work with property owners on a plan for the completion of the Prado Road extension to Broad Street.

New work effort CDD; PW  Transportation FY 25 Q4

3.1 c. Initiate an update to the Airport Area Specific Plan to allow mixed‐use residential  development, where appropriate and consistent with the County Airport Land Use Plan New work effort CDD; Attorney FY 25 Q4

3.1 d. Conduct a Study Session with the City Council to identify needs and opportunities across the housing spectrum, including various types of transitional and supportive housing options.

New work effort CDD FY 24 Q3

3.1 e. Implement Below Market Rate Housing best practices including leveraging affordable housing fund revenues, down payment assistance programs, streamlined processing of loan documents, and updated policies and procedures.

New work effort CDD; Attorney FY 24 Q4

3.2 Homelessness Response Strategic Plan Implementation3.2 a. Work collaboratively with County and key stakeholders to coordinate regional encampment and street outreach, including an expanded hotel voucher program to ensure a bridge for temporary emergency shelter
Ongoing work effort CDD; Attorney X FY 24 Q4

3.2 b. Increase homelessness response communications, resource sharing, and education,  including increased public use of Ask SLO app Ongoing work effort CDD; Admin FY 24 Q4

3.2 c. Expand implementation of digital encampment management tool internally and for potential countywide use or explore using other countywide systems shared with other regional partners.

Ongoing work effort CDD; PW; P&R; PD;  Fire FY 24 Q4

3.2 d. Leverage additional funding from other partner agencies for Mobile Crisis Unit (MCU) program, and Community Action Team (CAT) and service expansion; develop sustainable safe parking programs; and pilot additional transitional shelter programs with regional partners
Ongoing work effort CDD; PD; Fire X FY 24 Q4

3.2 e. Support County and regional partners in pursuing and implementing funding resources as appropriate given the City's role for services, and transitional and permanent supportive housing,  including Encampment Resolution Funding and Project Homekey grants Ongoing work effort CDD; Admin FY 24 Q4
Table M‐3: Housing and Homelessness Major City Goal Work Program Strategic Priorities: Housing and Homelessness
Financial Plan Page 54

Strategic
Approach #  Task/ Action Status (if in progress  already) Responsible  Department (s) New Funding Completion Date Table M‐3: Housing and Homelessness Major City Goal Work Program

3.2 f. Continue to develop the City's Safe Housing Outreach and Education Program, including preparation of a Council Memo on options for protecting renters, including homelessness prevention strategies.

Ongoing work effort Attorney; CDD FY24 Q3

3.2 g. Monitor and update the two‐year Homelessness Response Strategic Plan to align with Countywide Plan to Reduce Homelessness, other regional and state opportunities, and in advance of next City financial plan
New work effort CDD FY 25 Q2

3.3 Environmental Clean‐up in Creeks and Open Space3.3 a. Environmental clean‐ups in creek and open space areas associated with abandoned  personal property and trash. (Funding approved on March 7, 2023) Ongoing work effort P&R x FY 25 Q4

3.3 b. Environmental clean‐ups in City Parks and public spaces associated with abandoned  personal property and trash. (Funding approved on March 7, 2023) Ongoing work effort PW x FY 25 Q43.4 Public Safety3.4 a. Maintain SLOPD bike patrol program as staffing allows Ongoing work effort PD FY 25 Q4

3.4 b. Implement the new Community Service Officer program over the next fiscal year to ensure effectiveness and improvements in quality of life surrounding homelessness issues in the downtown (funding approved on March 7, 2023) New work effort PD x FY 24 Q1
Strategic Priorities: Housing and Homelessness
Members of the City's Homeless Response Team
Financial Plan Page 55

Strategic Priorities: Climate Action

4. Climate Action, Open Space and Sustainable Transportation Goal Statement: Proactively address the climate crisis and increase resiliency through the implementation of the Climate Action Plan. Use resources to reduce greenhouse gas emissions and reach carbon neutrality by 2035, with a focus on the preservation and enhancement of convenient and equitable alternative and sustainable transportation, the preservation of open space, and equitable access to parks and open space.

Expectations: The 2019-21 and 2021-23 Climate Action Major City Goals included capital projects, program implementation, and the development of strategic plans and citywide climate policy. With the adoption of the Climate Adaptation and Safety Element of the General Plan (2023), the Climate Action Plan update (2022), the Lead by Example Plan (2021), the Community Forest Plan (2023), the Parking Access and Management Plan (2023), and the Active Transportation Plan (2021), as well as the completion of the City Facility and Fleet Electrification Roadmaps (2023) and the Transit Innovation Study (2023), staff can now move from planning to implementation.

This comes at a time of historic federal and state funding for local climate mitigation and adaptation solutions. City staff and leadership will collaborate across departments and with the community to leverage these historic funding opportunities to realize critical progress towards Council’s adopted goals of reaching community-wide carbon neutrality by 2035 and municipal carbon neutrality by 2030, while also building resilience to climate disruptions. Staff will also collaborate across Major City Goals as housing, economic development, and diversity, equity, and inclusion are all core considerations in the Climate Action Plan. Importantly, staff will continue to implement this Major City Goal with an equity and justice lens, ensuring that the City’s climate and resilience solutions support quality-of-life improvements in alignment with the Diversity, Equity, and Inclusion Major City Goal.

Stakeholders/Responsible Departments: Administration is the lead department for the purposes of Major City Goal administration, monitoring, and reporting. However, the Climate Action, Open Space & Sustainable Transportation (Climate Action) Major City Goal will require the support and engagement from all City departments with special focus provided by Public Works, Utilities, Parks and Recreation, Fire, and Community Development. The City will also continue to engage current partners like the SLO Climate Coalition, Diversity Coalition of San Luis Obispo, City Farm SLO, ECOSLO, Rotary de Tolosa, R.A.C.E.

Matters SLO, Ecologistics, GALA, Bike SLO County, The Land Conservancy of SLO County, Air Pollution Control District of San Luis Obispo, Central Coast Community Energy, Integrated Waste Management Authority, Resource Conservation Districts, California Conservation Corps, the San Luis Obispo County Community FireSafe Council and CalFire, and other known and emerging partners.

Strategic Approach:

Strategy 4.1 – Implement the Climate Action Plan and Lead by Example 2023-25 Work Plans: The Climate Action Plan and the Lead by Example Plan provide critical path tasks to be completed in the 2023-25 timeframe and include work related to municipal operations, clean energy systems, green buildings, low carbon mobility, organic waste diversion, and natural solutions (due to Council’s direction for special focus, natural solutions and low carbon mobility are called out in Strategy 4.2 and 4.3, respectively). The City will use staff time and resources to pursue external funding and implement tasks described in the plans and in the Major City Goal work program.

Financial Plan Page 56

Strategy 4.2 – Sustain, Manage, and Enhance the City's Greenbelt and Make Progress on Planting 10,000 trees by 2035: The City continues to have outstanding opportunities to further its proud legacy of open space protection within the San Luis Obispo Greenbelt. As the City pursues new conservation opportunities, it will enhance existing City Open Space properties through planting trees, managing for increased resilience to fires, droughts and floods, building new trails, and increasing equitable access to City open spaces and natural reserves.

Strategy 4.3 - Preserve and Enhance Convenient and Equitable Alternative and Sustainable Transportation Options: The City will continue to implement actions in support of General Plan mode share targets (e.g., 50 percent of trips occurring outside of a single occupancy vehicle). This will occur through continued disciplined focus on the implementation of the highest-priority (“Tier 1”) Active Transportation projects, innovations and improvements to transit service, and supportive programing. For those that need to drive, the City will focus on enabling and deploying publicly accessible electric vehicle charging infrastructure.

Strategy 4.4 – Increase Community Resiliency: The City continues to feel the disruptive effects of a rapidly changing climate. Building on decades of risk mitigation and the recently adopted Climate Adaptation and Safety Element of the General Plan, the City will implement projects and programs that build social infrastructure, reduce community risk, and increase the community’s ability to recover from natural disasters, with a focus on flood, wildfire, and heat impacts.

Strategy 4.5 – Continue to Build City and Community Capacity for Transformational Climate Action:

Transformational climate action requires staff, resources, and networks of individuals and organizations collaborating and innovating. The City will continue to support successful implementation and innovation through internal and external collaborative partnerships such as the City’s Green Team, support for regional governmental collaboration, and support for community-based organizations.

Specific tasks listed on next page.

Strategic Priorities: Climate Action
Financial Plan Page 57

Strategic
Approach #  Task/ Action Status (if in progress  already) Responsible Department(s) New  Funding Completion Date

4.1 Implement the Climate Action Plan and Lead by Example 2023‐25 Work Plans

4.1 a. Continue to install electric vehicle chargers and replace fleet vehicles as needed with all‐electric alternatives as called for by CAP Lead by Example task 1.1.A . Ongoing work effort Public Works X Ongoing

4.1 b. Continue to electrify the bus fleet as called for by CAP Lead by Example task 1.1.A. Ongoing work effort Public Works X Ongoing

4.1 c. Complete installation of solar panels at the City's Bus Yard, Fire Station 1, and Sinsheimer Pool as called for by CAP Lead by Example task 1.1.A. Ongoing work effort Public Works /  Administration Q2 2025

4.1 Sustain, Manage, and Enhance the City's Greenbelt and Make Progress on Planting 10,000 trees by 2035 New work effort Public Works /  Administration X

4.1 e. Apply the "Sustainable SLO" mark to City infrastructure and assets and conduct a general awareness outreach program as funding and staff resources allow, as called for by CAP Lead byExample task 1.1.B.

Ongoing work effort Administration Ongoing

4.1 f. Provide ongoing support for Central Coast Community Energy Policy and Operations Board Members, and engage in staff level policy and program development, as called for by CAP Clean Energy task 1.1.A Ongoing work effort Administration Ongoing

4.1 g. Pursue funding, and if feasible, create the "Green and Healthy Buildings” service to educate the community and connect building owners with resources, federal funding, incentives, financing, contractors, and streamlined permitting as called for by CAP Green Buildings Task 2.1.B, 2.1.C, and2.1.D, and CASE Program HE‐4.7.

New work effort Aministration / CDD Ongoing

4.1 h. Continue to monitor impacts to Municipal Code 8.11 (All‐Electric New Buildings), and ifnecessary return to Council with an alternative approach to achieving the City's climate action goals as they relate to new buildings.

Ongoing work effort Administration / CDD Ongoing

4.1 i. Conduct a study session, and pending Council direction, develop an equitable framework for cost effective building electrification retrofit policies, with an initial focus on additions and alterations, as called for by CAP Green Buildings Task 2.1.E.

New work effort Administration / CDD Ongoing

4.1 j. Continue SB 1383 implementation by developing an inspection and enforcement program and complying with procurement requirements for organic waste and paper as called for in CAP Circular Economy task 1.1.A and 1.1.B.

New work effort Utilities Ongoing

4.1 k. Continue to support the IWMA on facilitating the City's edible food recovery programs as called for in CAP Circular Economy task 1.1.C, 1.2.A, and 1.3.A.  Ongoing work effort Utilities Ongoing

4.2 Sustain, Manage, and Enhance the City's Greenbelt and Make Progress on Planting 10,000 trees  by 2035

4.2 a. Actively implement opportunities to purchase open space lands and permanent land conservation agreements in furtherance of the City's Greenbelt Protection Program as called for by CAP Natural Solutions task 1.1.A.

Ongoing work effort Administration Ongoing

4.2 b. Complete installation of adopted trail systems at the Irish Hills Natural Reserve and at Miossi Open Space. Ongoing work effort Parks and Recreation Ongoing

4.2 c. Identify and implement trail alignment revisions, if feasible, and other solutions to reduceerosion and wet weather closures and address trail user safety and enjoyment at Reservoir Canyon Natural Reserve.

Ongoing work effort Parks and Recreation Ongoing

4.2 d. Continue Open Space education activities including the "hikes with experts" series, Junior Ranger Camp, and ongoing public information and programming, with emphasis on equity and equitable access.

Ongoing work effort Parks and Recreation / Administration Ongoing Table M‐4. Climate Action, Open Space & Sustainable Transportation Major City Goal Work Programs Strategic Priorities: Climate Action
Financial Plan Page 58

Strategic
Approach #  Task/ Action Status (if in progress  already) Responsible Department(s) New  Funding Completion Date Table M‐4. Climate Action, Open Space & Sustainable Transportation Major City Goal Work Programs

4.2 e. Continue implementation by Ranger Service staff of all Open Space maintenance activities including establishing a replacement schedule for Open Space trailhead improvements, as well as replacement or repair of Open Space fencing currently in disrepair, all as set forth in the adoptedOpen Space Maintenance Plan Ongoing work effort Parks and Recreation Ongoing

4.2 f. Continue ongoing Ranger Service patrol of Open Space areas ensuring compliance with the City Open Space regulations, the safety of users, and protection of natural resources values and functions.

Ongoing work effort Parks and Recreation Ongoing

4.2 g. Implement priority projects at Righetti Hill Open Space consistent with the Conservation Plan (if adopted in May 2023). Ongoing work effort Parks and Recreation Ongoing

4.2 h. Continue to work with community groups on tree planting in creeks and open space areas toward the goal of 10,000 trees by the year 2035 as called for in CAP Natural Solutions task 2.1.A New work effort Administration / Parks and Recreation X Ongoing

4.2 i. Continue to expand climate‐informed maintenance practices in the Greenbelt through external funding and partnerships, and conduct ongoing monitoring on carbon sequestration results and other co‐benefits for existing and potential future projects, as called for in CAP Natural Solutions task 2.1.B.

Ongoing work effort Administration X Ongoing

4.2 j. Continue to implement rehabilitation efforts throughout the City's open space network where storm damage has occurred to trails, access roads, and other open space infrastructure. New work effort Parks and Recreation / Administration Ongoing

4.2 k. Continue partnership with City Farm SLO to install site security and access measures and to implement California Farmland Conservancy Program grant scope of work. New work effort Administration / Parks and Recreation Ongoing

4.3 Preserve and Enhance Convenient and Equitable Alternative and Sustainable Transportation  Options

4.3 a. Active Transportation Plan (ATP) Tier 1 Network ‐ Higuera Complete Street Project: Complete final design and construction of active transportation and safety improvements along Higuera Street corridor from Marsh St. to Los Osos Valley Rd.

Ongoing work effort Public Works X FY25 Q3

4.3 b. Active Transportation Plan (ATP) Tier 1 Network ‐ South/King Crossing: Complete design and construction of a new protected bicycle/pedestrian crossing at the intersection of South St. & King St., improving access to Meadow Park, Hawthorne Elementary, and existing active transportation routes.

New work effort Public Works X FY25 Q3

4.3 c. Active Transportation Plan (ATP) Tier 1 Network ‐ Foothill Complete Street Project: Continue design of active transportation and safety improvements along the Foothill Blvd. corridor between the western city limits and California Blvd., with goal to have shovel‐ready project for construction in FY2025‐27.

New work effort Public Works X FY25 Q1

4.3 d. Active Transportation Plan (ATP) Tier 1 Network ‐ California/Taft Roundabout: Complete final design and right‐of‐way acquisition for new roundabout at the California Blvd. & Taft St. intersection, with goal to have shovel‐ready project for construction in FY2025‐27.

Ongoing work effort Public Works X FY25 Q4

4.3 e. Active Transportation Plan (ATP) Tier 1 Network ‐ Paving Project Complete Street Elements:

Implement complete street and safety improvements as part of 2023 and 2024 summer paving projects as guided by the Active Transportation Plan and Traffic Safety/Vision Zero reports.

Ongoing work effort Public Works X Ongoing
Strategic Priorities: Climate Action
Financial Plan Page 59

Strategic
Approach #  Task/ Action Status (if in progress  already) Responsible Department(s) New  Funding Completion Date Table M‐4. Climate Action, Open Space & Sustainable Transportation Major City Goal Work Programs

4.3 f. Active Transportation Plan (ATP) Tier 1 Network ‐ Railroad Safety Trail (Orcutt to Tiburon) Connection:  Initiate design and environmental review for a project that will complete the gap in the Railroad Safety Trail in the Orcutt Area between Tiburon Dr. and Orcutt Rd., including replacement of the narrow culvert on Bullock Lane and pedestrian/bicycle safety improvementsat the Orcutt Road/Union Pacific Railroad Crossing.

Ongoing work effort Public Works X FY25 Q4

4.3 g. Active Transportation Plan (ATP) Tier 1 Network ‐ Foothill/California Railroad Crossing Improvements:  Complete design and initiate construction of federally‐funded pedestrian safetyimprovements at railroad crossing.

Ongoing work effort Public Works FY25 Q4

4.3 h. Active Transportation Plan (ATP) Tier 1 Network ‐ Prado Creek Bridge Replacement: Complete design of new bridge, including sidewalks, protected bike lanes, and additional vehicular lanes toaccommodate existing and future traffic demand. Includes reconstruction of S. Higuera/Pradointersection with additional capacity and protected intersection features to improve safety for pedestrians and cyclists.

Ongoing work effort Public Works X Ongoing

4.3 i. Active Transportation Plan (ATP) Tier 1 Network ‐ Prado/US 101 Interchange: Complete project approval and environmental document phase of project, and initiate design phase for newinterchange, which includes extension of Prado Road over US 101 to Froom Ranch Way, with new northbound on/off‐ramps, four auto lanes, center median/left turn lanes, sidewalks and protected bike lanes. Includes realignment of Elks Lane and signalization of the Prado/Elks intersection.

Ongoing work effort Public Works X Ongoing

4.3 j. Vision Zero Implementation ‐ Update annual Traffic Safety Report to evolve into a 5‐Year Vision Zero Action Plan and continue ongoing implementation of traffic safety projects and programs, focusing efforts on the City's high crash/injury network.

Ongoing work effort Public Works Ongoing

4.3 k. Transit Innovation Study Implementation: Begin planning implementation of strategies recommended in Final Transit Innovation Study, including incorporation of near‐term strategies as part of planned SLO Transit/RTA Short Range Transit Plan update, as called for in CAP Connected Community Task 4.2.A and in the APMP Strategies 1.C.

New work effort Public Works /  Administration X Ongoing

4.3 l. Reassess the viability of launching a citywide bikeshare system, with ongoing coordination with Cal Poly as called for in CAP Connected Communities Task 2.2.A and the APMP strategy 1.B.1.

Solicit potential bikeshare system operators if staffing resources allow and this can be done without diverting resources from delivering priority active transportation infrastructure projects.

New work effort Administration FY25 Q4

4.3 m. Public EV Chargers ‐ Enable public EV charger deployment on City property, support EV charger installation on private property, and deploy EV chargers in low‐income areas of the City as called for in CAP Connected Community Tasks 6.1.A, 6.1.B, and 6.1.D.

Ongoing work effort Administration Ongoing

4.4 Increase Community Resilience

4.4 a. In coordination with Zone 9, convene a working group to assess the current creek flow monitoring system and provide recommendations for enhancements, as called for in CASE program FL‐3.13.

New work effort Community Development /  Administration / Fire FY25 Q4

4.4 b. Conduct a study session to consider options for funding stormwater and / or creek maintenance and flood preparedness in support of CASE programs 3.9, 3.10, 3.11, 3.12, 3.13, and

3.14. New work effort Utilities / Public Works /  Administration FY25 Q4 Strategic Priorities: Climate Action
Financial Plan Page 60

Strategic
Approach #  Task/ Action Status (if in progress  already) Responsible Department(s) New  Funding Completion Date Table M‐4. Climate Action, Open Space & Sustainable Transportation Major City Goal Work Programs

4.4 d. Evaluate opportunities to integrate climate considerations in the City's Engineering Standards and Specifications as called for in CASE program MH‐1.6. New work effort Public Works Ongoing

4.4 e. Provide post‐disaster recovery resources and emergency preparedness education to vulnerable community members as called for in CASE program MH‐1.10. New work effort Fire / Community  Development Ongoing

4.4 f. Initiate the development of Wildland‐Urban‐Interface Defensible Space and Home Hardening Program as called for in CASE program FI‐5.15. Ongoing work effort Fire 2024 Q4

4.4 g. Monitor funding sources and if feasible pursue a Climate Resilience Hub planning grant with  community partners, as called for in CASE program MH‐1.8. New work effort Administration Ongoing4.4 h. In partnership with Zone 9, seek funding to initiate the Waterway Management Plan update to incorporate climate‐informed flood risk as called for in CASE program FL‐3.7. Initial work in this Financial Plan period is envisioned to include identifying and securing funding, developing aproject scope, and drafting a request for proposals.

New work effort Administration FY25 Q4

4.4 i. Develop an Urban Creeks Vegetation Management Plan as called for in CASE program FL‐3.10. Ongoing work effort Fire / Administration4.4 j. Incorporate Traditional Ecological Knowledge into open space management decisions as called  for in CASE program OP‐7.2. New work effort Administration Ongoing4.4 k. Implement the Mid‐Higuera Bypass Project. Ongoing work effort Public Works /  Administration X Ongoing

4.4 l. Implement the Laguna Lake Dredging and Sediment Management Project. Ongoing work effort Public Works /  Administration X Ongoing

4.4 m. Implement Silt Removal Projects from Priority Creek Locations. Ongoing work effort Administration / Public  Works Ongoing

4.4 n Implement existing Community Wildfire Protection Plan and initiate focused update in 2024.  Ongoing work effort Fire Ongoing4.5 Continue to Build City and Community Capacity for Transformational Climate Action4.5 a. Participate in the Cal Poly Climate Corps Fellowship program to build staff capacity as called for in the CAP.  New work effort Administration / CDD /  Public Works / Utilities Ongoing

4.5 b. Manage the Green Team to Support Lead by Example, Climate Adaptation and Safety Element of General Plan, and Climate Action Plan implementation, as called for in CASE program MH‐1.11 and OP‐7.9.

Ongoing work effort Administration Ongoing

4.5 c. Continue to support and empower community collaboration for climate action, including support for the Climate Coalition and the San Luis Obispo Climate Justice Collaborative, as called for in CAP task 3.1.A.

Ongoing work effort Administration Ongoing

4.5 d. Support regional efforts to develop the workforce required to implement the Climate Action Plan as called for in CAP task 2.2.A. New work effort Administration Ongoing

4.5 e. Initiate update to the Lead by Example plan to inform the 2025‐27 Financial Plan as called for by CAP Lead by Example task 1.1.A and Lead by Example Plan Administrative Action 1 Ongoing work effort Administration Ongoing

4.5 f. Conduct GHG Emissions Inventory and Biennial CAP and Lead by Example Progress Reports as called for in CAP Administrative Action 2 and Lead by Example Plan Administrative Action 2. Ongoing work effort Administration 2024 Q3 Strategic Priorities: Climate Action
Financial Plan Page 61

Strategic
Approach #  Task/ Action Status (if in progress  already) Responsible Department(s) New  Funding Completion Date Table M‐4. Climate Action, Open Space & Sustainable Transportation Major City Goal Work Programs

4.5 g. Continue to integrate climate action and resilience into the 2025‐27 Financial Plan development process consistent with Budget Policy A.6 and as called for by CAP Lead by Example task 1.1. and CASE Program MH‐1.5.

Ongoing work effort Administration Ongoing

4.5 h. As authorized by City Council (December 13, 2022) and as called for in CAP Administrative  Action 6, pursue grant and other external funding sources opportunistically and strategically. Ongoing work effort Administration Ongoing

4.5 i. Complete steps and present recommendations and options to maximize the reuse of wastewater per the "Road Map" presented to the City Council. Ongoing work effort Utilities Ongoing Strategic Priorities: Climate Action
Financial Plan Page 62

Local Revenue Measure
Local Revenue Measure G-20 (1.5 Cent Local Sales Tax)
Introduction
In November 2020, the City’s voters approved a local sales tax measure that will provide an additional revenue for community services and infrastructure improvements. As a General Purposes Tax, the City’s Local Revenue Measure (LRM) expenditures are categorized as General Fund capital improvement project costs or operating costs. The community set the spending priorities for the measure funding as:
 Protect Financial Stability
 Community Safety and Emergency Preparedness
 Creek and Flood Protection
 Address Homelessness
 Safe and Clean Public Areas
 Economic Development and Business Retention
 Youth/Senior Services and Recreation Facilities
 Street Maintenance and Transportation (includes bicycle and pedestrian improvements)  Open Space/Natural Areas Preservation and Maintenance  Other Services and Projects
The proposed uses of the revenue is recommended by the Revenue Enhancement Oversight Commission (REOC), an advisory body to the City Council, based on input from the community, the Major City Goals established by the City Council, and in alignment with updated revenue projections.

Revenue and Expenditure Forecast Highlights
 The Local Revenue Measure is the City’s largest revenue source. It is also one most volatile to economic conditions and recessionary impacts.
 The current revenue projections reflect a cooling of the economy over 2023-25 but not a recession. The forecast of revenues may change over time and updates will be provided to the REOC and Council.
 Higher labor and raw material costs along with inflationary pressures drive taxable good prices upward and increase Measure G-20 revenue; however, higher prices have also significantly increased the City’s own expenditure costs.

Because the City prepares a five-year CIP which is revised and adopted every two years, all the projects listed in the budget have been identified in previous reports to Council and the REOC.

Given the cost escalation of existing projects and limited available funding, no new projects or services were considered for 2023-25, with the exception of emergency storm-related projects.

Projects and Services were evaluated using both the LRM priorities and the Major City Goals established by the City Council to align funding for projects and services within projected revenues.

Financial Plan Page 63

Local Revenue Measure
Certain categories such as Street Maintenance and Transportation account for the highest percentage of the budget because of the cost to deliver projects such as the annual street paving project . The operating budget reflects investment closely aligned with the community forum feedback, with Addressing Homelessness, Open Space Preservation, and Streets Maintenance within the top five budget allocations.

Balance between Capital Investment and Operating Budget Support Previous input from the community and REOC has led to the prioritization of LRM funds for infrastructure investments with a long-term balance of about 85% allocated to capital and 15% allocated to operating costs. Operating program costs frequently follow the implementation of capital projects as the assets require maintenance and upkeep; for instance, the construction of a new park will require staff to maintain it. In addition, operating programs deliver essential services that align with the community’s current priorities, such as addressing homelessness.

Given this interrelationship, the 2023-25 percentage splits below represent a budget that adequately supports the replacement and maintenance of assets, while also addressing expectations from the community for service delivery.

CIP Expenditure
Percentage
Operating Expenditure
Percentage
FY 2023-24 77.2% 22.8%
FY 2024-25 76.9% 23.1%
Local Revenue Measure Uses
Expenditures are broken into the ten categories as identified in the Measure G-20 (Local Revenue Measure) ballot language.

Table 4: Local Revenue Measure Categories 2023-24 2024-25 2-Year Total
1 Community Safety and Emergency Preparedness $5,919,118 $3,455,404 $9,374,522 2 Address Homelessness $796,897 $809,912 $1,606,809
3 Open Space/Natural Areas Preservation and
Maintenance
$1,587,865 $2,304,027 $3,891,891
4 Street Maintenance and Transportation (includes
bicycle and pedestrian improvements)
$10,252,816 $9,973,701 $20,226,517
5 Creek and Flood Protection $3,143,150 $1,692,224 $4,835,374 6 Youth/Senior Services and Recreation Facilities $1,615,882 $4,975,719 $6,591,601 7 Protect Financial Stability $515,519 $536,284 $1,051,803 8 Safe and Clean Public Areas $765,767 $1,510,109 $2,275,877 9 Economic Development and Business Retention $425,000 $425,000 $850,000 10 Other Services and Projects $1,230,742 $1,215,060 $2,445,802 11 Capital Reserve $4,000,000 $4,000,000 $8,000,000
12 Grand Total $30,252,756 $30,897,440 $61,150,195
Table 3: LRM Expenditure by Type ( Capital vs. Operating) Financial Plan Page 64

Local Revenue Measure
$18,859,587 , 40%
$8,000,000 , 17%
$5,425,316 , 11%
$4,490,571 , 10%
$3,530,000 , 7%
$2,625,000 , 6%
$2,162,802 , 5%
$1,475,113 , 3% $550,000 , 1%
Chart 5: 2023-25 LRM Uses - Capital ($47.1 million)
Street Maintenance and Transportation (includes bicycle and pedestrian improvements) Capital Reserve*
Youth/Senior Services and Recreation Facilities
Community Safety and Emergency Preparedness
Creek and Flood Protection
Open Space/Natural Areas Preservation and Maintenance
Other Services and Projects
Safe and Clean Public Areas
Economic Development and Business Retention
*With the 2021-23 Financial Plan, Council adopted a fiscal policy to maintain a committed reserve of 20% of the capital improvement plan budget for the purposes of offsetting unanticipated cost increases, unforeseen conditions, and urgent unanticipated projects. Over the last two years, the reserve was 100% exhausted; therefore, the 2023-25 Financial Plan includes an annual allocation in anticipation of similar trends.

Financial Plan Page 65

Local Revenue Measure
$4,883,951 , 35%
$1,606,809 , 11%
$1,366,930 , 10%
$1,305,374 , 9%
$1,266,891 , 9%
$1,166,285 , 8%
$1,051,803 , 8%
$800,764 , 6%
$300,000 , 2%
$283,000 , 2%
Chart 6: 2023-25 LRM Uses - Operating ($14 million)
Community Safety and Emergency Preparedness
Address Homelessness
Street Maintenance and Transportation (includes bicycle and pedestrian improvements) Creek and Flood Protection
Open Space/Natural Areas Preservation and Maintenance
Youth/Senior Services and Recreation Facilities
Protect Financial Stability
Safe and Clean Public Areas
Economic Development and Business Retention
Other Services and Projects
Financial Plan Page 66

Line ID
2023-25 Financial Plan: Local Revenue Measure Expenditure Budget by Priority 2023-24 Budget 2024-25 Budget 1 Address Homelessness $ 796,897 $ 809,912
2 Operating
3 CAT Team Social Worker - Contract through TMH $ 116,188 $ 116,188 4 Homelessness Response Manager (FTE=1) $ 142,141 $ 150,958 5 25% Expansion of 40 Prado Beds - Proportions City share to County contribution $ 63,826 $ 63,826 6 Housing/Homelessness Admin Specialist (FTE=1) $ 100,313 $ 102,669 7 Mobile Crisis Unit ( Social Worker and Other Operating Expenditures) $ 181,025 $ 181,025 8 Mobile Crisis Unit Paramedic/Firefighter (FTE=1) $ 113,404 $ 115,247 9 Parks and Open Space Environmental Clean-Up Resources $ 80,000 $ 80,000 10 Community Safety and Emergency Preparedness $ 5,919,118 $ 3,455,404 11 Capital
12 Fire Hydrants: Fire Hydrants $ 55,000 $ 55,000
13 Fire Station 3&4 Remodel Space Study and Design $ 200,000 14 Fleet Replacement: Admin: City Hall Generator (GEN-9712) $ 9,484 15 Fleet Replacement: Police: Police Motorcycles $ - $ 20,000 16 Fleet Replacement: Police: Police Patrol Hybrid SUV (2 Vehicles per Year)) $ - $ 70,000 17 Fleet Replacement: Public Works: Supplies, Software and Tools $ 100,000 18 IT Replacement: Body Worn Cameras, Video Storage and Interview Rooms $ 50,000 $ 50,000 19 IT Replacement: Dispatch Radio Consoles $ 150,000 $ - 20 IT Replacement: ECC Equipment Replacement $ 35,000 $ 35,000 21 IT Replacement: Public Safety MDC and In-Car Video Replacement $ 250,000 22 IT Replacement: Public Surveillance Cameras $ 28,915 $ - 23 IT Replacement: Radios, Mobiles and stations not replaced - PW Only $ - $ 55,000 24 IT Replacement: Uninterruptible Power Supplies (UPS’s Servers and Storage) $ - $ 42,172 25 Major Facility Maintenance: Facility Roll Up Door Replacements $ 15,000 $ 20,000 26 Major Facility Maintenance: Fire Station #1 Administration Bldg. Roof $ 60,000 27 Major Facility Maintenance: Fire Station #4 - Exterior Paint $ 25,000 28 Major Facility Maintenance: Police Department Hydronic System Piping Repl $ 15,000 29 Major Facility Replacements: Public Safety Center $ 350,000 30 Parking Lot Maintenance: Fire Station 2 $ 50,000
31 Storm Response and Recovery** $ 2,750,000
32 Operating
33 Police Officer (FTE=3) $ 645,199 $ 667,140
34 Police Sergeant (FTE=1) $ 261,063 $ 273,419
35 Community Services Officers (FTE=4) $ 424,551 $ 445,058 36 Emergency Manager (FTE=1) $ 172,488 $ 181,878
37 Farmer's Market Supplemental Staffing Support $ 16,000 $ 16,000 38 Fire Equipment Replacement (PPE, AED, etc.) $ 173,000 $ 173,000 39 Fire Inspection Management Software (Mobile Eyes) $ 11,150 $ 11,150 40 Fire Intern Program $ 23,011 $ 23,586
41 Fire Technical Rescue Team Expansion $ 10,000 $ 10,000 42 Fire Training/Safety Captain (FTE=1) $ 282,436 $ 285,253 43 Firefighter (FTE=2) $ 302,305 $ 318,264
44 Open Space and Creeks Hazardous Tree Removals $ 20,000 $ 20,000 45 Police Equipment Replacement and Supplies $ 47,000 $ 47,000 46 Public Safety Customer Engagement $ 12,000 $ 12,000
47 Creek and Flood Protection $ 3,143,150 $ 1,692,224
48 Capital
49 Fleet Replacement: Public Works: Stormwater Hydro cleaner (0859) $ 630,000 50 Storm Drain System Replacement: Drainage Infrastructure Replacement $ 1,800,000 $ 950,000 51 Storm Drain System Replacement: Trash Capture $ 75,000 $ 75,000 52 Operating
Local Revenue Measure
Table L-5: LRM Budget
Financial Plan Page 67

Line ID
2023-25 Financial Plan: Local Revenue Measure Expenditure Budget by Priority 2023-24 Budget 2024-25 Budget 53 Environmental Compliance Inspector (FTE=1) $ 124,748 $ 132,803 54 Environmental Programs Manager (FTE=0.4) $ 70,689 $ 73,045 55 GIS Specialist (FTE=0.25) $ 30,232 $ 32,243
56 Laboratory Analyst (FTE=0.1) $ 15,057 $ 16,011
57 Sweeper Operator (FTE=1) $ 104,076 $ 106,655
58 Wastewater Collection Supervisor (FTE=0.25) $ 40,508 $ 43,091 59 Wastewater Collection System Operator (FTE=2) $ 252,840 $ 263,375 60 Economic Development and Business Retention $ 425,000 $ 425,000 61 Capital
62 Annual Public Art Maintenance and Projects: Asset Maintenance $ 30,000 $ 30,000 63 Annual Public Art Maintenance and Projects: Small Public Art Projects $ 100,000 $ 100,000 64 Annual Public Art Maintenance and Projects: Utility Box Beautify $ 20,000 $ 20,000 65 Banner Arms, Bench Arm Rests, Signs: Banner Arms, Bench Arm Rests, Signs $ 25,000 $ 25,000 66 Roundabout Public Art Installations: Roundabout Public Art Installations $ 100,000 $ 100,000 67 Operating
68 Holiday Activation Support in Downtown for Lighting and Other Features $ 150,000 $ 150,000 69 Open Space/Natural Areas Preservation and Maintenance $ 1,587,865 $ 2,304,027 70 Capital
71 Laguna Lake Dredging and Sediment Management Project Implementation $ 900,000 72 Open Space Acquisition: Open Space Acquisition $ 175,000 $ 150,000 73 Open Space Maintenance: General Open Space Maintenance $ 120,000 $ 120,000 74 Open Space Maintenance: Open Space Fencing $ 50,000 $ 50,000 75 Pismo Street Retaining Wall - Storm Response : Wall Adjacent to Vista Grande $ 200,000 76 Urban Forest Maintenance: Urban Forest Maintenance $ 420,000 $ 440,000 77 Operating
78 Ranger Maintenance Worker (FTE=4) $ 358,135 $ 372,845 79 Fuel Reduction Crew $ 65,000 $ 65,000
80 Open Space Vegetation Management and Fuel Reduction $ 25,000 $ 25,000 81 Parks Contract Services Funding $ 40,000 $ 40,000
82 Sustainability & Natural Resources Analyst (FTE=1) $ 134,730 $ 141,181 83 Other Services and Projects $ 5,230,742 $ 5,215,060
84 Capital
85 Allocation to CIP Reserve (Per policy) $ 4,000,000 $ 4,000,000 86 Electric Vehicle Charging Station at Various Facilities: Various City Facilities $ 75,000 $ 100,000 87 Lead by Example: Swim Center Heat Pump $ 25,000
88 Major Facility Maintenance: ADA Transition Plan Implementation $ 15,000 $ 15,000 89 Major Facility Maintenance: Energy Management Controls Upgrade $ 110,000 90 Major Facility Maintenance: IT Room Heat Pump Replacements $ 12,000 $ 15,000 91 Capital Projects Manager I/II/III (FTE=1)* $ 137,609 $ 140,792 92 CIP Manager (FTE=1)* $ 170,551 $ 179,930
93 Engineering Inspector I/II/III/IV (FTE=1)* $ 153,715 $ 160,439 94 Public Works Contract Coordinator (FTE=2)* $ 239,042 $ 249,432 95 Supervising Civil Engineer (FTE=1)* $ 176,325 $ 187,967 96 Operating
97 Centralized Resident Inquiry Platform (GoGov) $ 40,000 $ 40,000 98 City Fleet Vehicle Repairs $ 20,000 $ 20,000
99 Funding for Increased Cost of Facilities Maintenance Materials and Supplies $ 30,000 $ 30,000 100 Increased Contract Funds for Specialized Mechanic Services $ 51,500 $ 51,500 101 Protect Financial Stability $ 515,519 $ 536,284
102 Operating
103 Accounting Assistant (FTE=1) $ 88,474 $ 94,056
104 Application Systems Specialist (1 FTE) (FTE=1) $ 154,154 $ 157,690 Local Revenue Measure
Table L-5: LRM Budget
Financial Plan Page 68

Line ID
2023-25 Financial Plan: Local Revenue Measure Expenditure Budget by Priority 2023-24 Budget 2024-25 Budget 105 Financial Specialist - Accounting (FTE=1) $ 106,039 $ 112,678 106 Fire Injury Reduction Program $ 18,000 $ 18,000
107 Technology Project Manager (FTE=1) $ 148,852 $ 153,861 108 Safe and Clean Public Areas $ 765,767 $ 1,510,109
109 Capital
110 Fleet Replacement: Admin: Downtown Cleaning Equipment $ 125,000 111 IT Replacement: Public Surveillance Citywide Cameras Storage $ 28,915 112 IT Replacement: Security Video System Replacement (Camera&Software) $ 55,500 $ - 113 Mission Plaza Concept Plan: Phase 2 - Plaza Area Between Chorro and Broad $ 75,670 $ 370,028 114 Mission Plaza Concept Plan: Phase 3 - Broad Street Dog-Leg Improvements $ 100,000 115 Park Major Maintenance & Repairs: Mission Plaza Railing Upgrade $ 35,000 $ 35,000 116 Sidewalk Replacement and Installation: Curb Ramps and Sidewalks $ 50,000 $ 100,000 117 Sidewalk Replacement and Installation: Street Tree Sidewalks $ 50,000 $ 50,000 118 SLO Creek Walk Maintenance - Lighting, Signage, Irrigation, Plants $ 250,000 119 Street Lights - Annual Asset Maintenance: Pathway Lighting Various Locations $ 75,000 $ 75,000 120 Operating
121 Downtown Maintenance Coordinator (FTE=1) $ 115,096 $ 117,559 122 Facilities Contract Services Funding $ 25,000 $ 25,000 123 Landscape Maintenance $ 70,000 $ 70,000
124 Mission Plaza & Downtown Maintenance $ 77,750 $ 77,750 125 Parks Maintenance Beautification Gardener (FTE=1) $ 107,836 $ 114,772 126 Street Maintenance and Transportation (includes bicycle and pedestrian) $ 10,252,816 $ 9,973,701 127 Capital
128 ATP Implementation: Active Transportation Plan Tier 1 Network Implementation $ 50,000 $ 50,000 129 ATP Implementation: Area Sealing Projects Complete Street Components $ 285,000 $ 200,000 130 ATP Implementation: Bicycle Facility Improvements $ 55,000 $ 150,000 131 ATP Implementation: Pedestrian Facility Improvements (see footnote 1) $ - $ 60,000 132 ATP - Foothill Boulevard Complete Street Project $ 200,000 133 ATP - Higuera Complete Street Project $ 300,000 $ 750,000 134 ATP - Orcutt Road Railroad Crossing Upgrades $ 200,000 $ - 135 Bridge Maintenance: Bridge Maintenance $ 150,000 $ 200,000 136 California & Taft Roundabout: California & Taft Roundabout $ 500,000 137 Downtown Renewal: Broad Street - West Side - Higuera to Marsh $ 200,000 138 Fleet Replacement: Public Works: Streets Maint HD Air Brake Trailer (9711) $ 55,000 139 Fleet Replacement: Public Works: Streets Maintenance Trailers (9231, 0006) $ 25,000 140 Mid-Higuera Bypass: Mid-Higuera Bypass $ 1,250,000 $ 2,850,000 141 Neighborhood Traffic Improvements: Neighborhood Traffic Improvements $ 45,000 $ 30,000 142 Pedestrian and Bicycle Pathway Maintenance: Andrews and Johnson Bike Path $ 10,000 143 Ped and Bicycle Pathway Maintenance: Various Locations $ 125,000 $ 150,000 144 Street Reconstruction & Resurfacing: Monterey - CA to Santa Rosa $ 1,150,000 145 Street Reconstruction & Resurfacing: Morro Mid-Block $ 200,000 146 Street Reconstruction & Resurfacing: Palm - Pepper to Santa Rosa $ 700,000 147 Street Reconstruction & Resurfacing: Pavement Management $ 3,729,000 $ 2,908,000 148 Street Reconstruction & Resurfacing: Paving Area Curb Ramps $ 1,000,000 149 Traffic Signs & Striping Maintenance: Traffic Signs & Striping Maintenance $ 75,000 $ 75,000 150 Transportation Safety & Operations: Vision Zero Program Implementation $ 140,000 $ 120,000 151 Active Transportation Manager (FTE=1)* $ 162,514 $ 170,611 152 CIP Project Engineering Inspector (FTE=1)* $ 136,027 $ 141,947 153 Transportation Planning Engineer (FTE=1)* $ 127,926 $ 133,561 154 Operating
155 Increased Asphalt and Concrete Budget $ 60,000 $ 60,000 156 Increased Budget for Signals and Street Light Equipment and Electricity $ 25,000 $ 25,000 Local Revenue Measure
Table L-5: LRM Budget
Financial Plan Page 69

Line ID
2023-25 Financial Plan: Local Revenue Measure Expenditure Budget by Priority 2023-24 Budget 2024-25 Budget 157 Signal & Streetlight Technician (FTE=1) $ 126,759 $ 129,335 158 Streets Maintenance Operator (FTE=4) $ 460,589 $ 480,246 159 Youth/Senior Services and Recreation Facilities $ 1,615,882 $ 4,975,719 160 Capital
161 Development Related Park Improvements: Orcutt Area - Neighborhood Park $ 3,237,138 162 Fleet Replacement: Public Works: Parks Maintenance 3/4 ton Pickup $ 140,000 163 Fleet Replacement: Public Works: Parks Tractor attachments $ 75,000 164 Fleet Replacement: Public Works: PW Maintenance Supervisor Vehicle $ 50,000 165 Laguna Lake Golf Course Maintenance: Laguna Lake Golf Course Maintenance $ 20,000 $ 20,000 166 Major Facility Maintenance: Hydration Stations $ 25,000 $ 25,000 167 Major Facility Maintenance: Jack House Roof and Widows Walk Railing $ 250,000 168 Major Facility Maint: Ludwick and Senior Center - Exterior Paint and Shell Rehab $ 250,000 169 Major Facility Maintenance: Swim Center Furnaces (2 Furnaces) $ 40,000 170 Major Facility Maintenance: Swim Center Pool Water Chemical Regulator $ 20,000 171 Major Facility Maintenance: Therapy Pool Shade Structure Material Replacement $ 33,178 172 Park Major Maintenance & Repairs: ADA Transition Plan Implementation $ 20,000 173 Park Major Maintenance & Repairs: Bench & Table Replacements $ 15,000 $ 15,000 174 Park Major Maintenance & Repairs: Irrigation Mainline Leak Repair $ 35,000 $ 35,000 175 Park Major Maintenance & Repairs: Jack House Arbor $ 175,000 176 Park Major Maintenance: Landscape Controller System Upgrade to Calsense $ 150,000 177 Park Major Maintenance: Madonna Road Landscaping and Irrigation Replacement $ 50,000 178 Park Major Maintenance & Repairs: Parks Play Surfacing $ 80,000 $ 60,000 179 Park Major Maintenance & Repairs: Santa Rosa Park Monument Sign $ 20,000 180 Park Major Maintenance & Repairs: Sinsheimer Stadium Lighting Addition $ 75,000 181 Park Major Maintenance & Repairs: Water Stations and Supply Lines $ 30,000 $ 30,000 182 Parking Lot Maintenance: Johnson Park $ 50,000
183 Parking Lot Maintenance: Ludwick Community Center $ 10,000 184 Parking Lot Maintenance: Meadow Park $ 175,000
185 Parking Lot Maintenance: Minor Repair of City Parking Lots $ 40,000 $ 40,000 186 Parking Lot Maintenance: Mitchell Park and SLO Senior Citizens Center $ 10,000 $ 35,000 187 Parking Lot Maintenance: Throop Park $ 10,000 $ 80,000 188 Operating
189 Parks Maint. Specialist (FTE=2) $ 218,904 $ 232,457 190 Swim Center Supplies (pool chemicals, etc.) $ 25,000 $ 25,000 191 Volunteer Coordinator (FTE=1) $ 93,457 $ 99,598
192 Youth Services Specialists (FTE=2) $ 228,521 $ 243,348 193 Total $ 30,252,756 $ 30,897,440
* These positions are budgeted within the operating programs, but are categorized as "Capital" here because they have a direct tie to the delivery of Capital Projects
** Staff is seeking FEMA reimbursement for emergency storm repair projects. Staff anticipate the need for funding to support storm related infrastructure repair if FEMA reimbursement is not received. Any unused budget and reimbursement revenue that the City receives will replenish the capital reserve or support future capital projects.

Footnote 1: This table represents the LRM portion of the budget only, not the entire project budget. This task has $45,000 of TDA funding allocated in 2023-24 and an additional $90,000 forecasted in FY 2024-25. See the capital section of the Financial Plan for the full project budget details.

Local Revenue Measure
Table L-5: LRM Budget
Financial Plan Page 70

FINANCIAL PLAN OVERVIEW
Financial Plan Page 71

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Financial Plan Page 72

Budget at a Glance
Budget at a Glance – General Fund
The City of San Luis Obispo 2023-25 Financial Plan outlines the detailed approach to address community priorities in a fiscally responsible manner. The Financial Plan is aligned with the City Council’s Major City Goals, supports the ongoing services of the City, maintains and replaces its assets, and pays its debt. The Financial Plan also provides clear direction and authority to spend funds appropriated according to the strategic plan efforts and the services outlined. This Budget at a Glance section concentrates on the General Fund. You can find information pertaining to the Water and Sewer Utilities, Parking, and Transit in the “Business Activities” section of the budget.

General Fund Budget (in thousands)
1 A. FY 23-24 B. FY 24-25 C. Two-Year Total
1 Total Revenue $116,173,988 $119,405,109 $ 235,579,097 2 Total Expenditures $118,817,379 $114,754,112 $233,571,491 3 Revenue Over/(under) Expenses $(2,643,391) $4,650,998 $2,007,606 The Financial Plan is centered around three strategic planning measures:
1) Prioritization of storm recovery and preparation for future events 2) The 2023-25 strategic priorities (Major City Goals) that were developed through extensive community outreach and input, resulting in four strategic areas that provide for synergies between work programs to achieve the desired outcome.
3) Local Revenue Measure (LRM) community direction
1 Expenditures are over revenues in FY 2023-24 for two reasons: (1) unbudgeted storm costs that will be temporarily paid for using the City’s reserves and (2) there are one-time expenditures using fund balance from the prior year.

The City is in compliance with its budget policy to maintain a balanced budget over the two‐year period of the Financial Plan (Column C).

Table 7:

Financial Plan Page 73

Budget at a Glance
Investment in Storm Recovery
The City experienced multiple storms during the first few months of the 2023 calendar year and while initial damage assessments have been done, the number and scope of the repairs continues to evolve as staff is able to access impacted areas to fully assess the extent of the damage. The overarching strategy for the 2023-25 Financial Plan is to prioritize storm recovery and prepare for future storm events. Given the extent of damages, the City Manager activated the Fiscal Health Contingency Plan in January 2023.

The Fiscal Health Contingency Plan provides a framework for responding to adverse fiscal circumstances like natural disasters and is intended to help the City’s budget stay in good financial condition by limiting expenditures.

The storms have resulted in two separate emergency declarations at the Federal, State and local level and as of publishing of this Financial Plan, the City is only eligible for reimbursement of costs related to the January storms. Staff is working to clearly identify and distinguish costs attributable to the January storm and March storm events. As of the middle of May 2023, the City has spent just under $4 million in response to the storms, including staff time, supplies, emergency protective measures, debris removal and repair of damages to City infrastructure. In addition to the costs incurred to date, Public Works estimates $4.3 million of future expense to make high-priority permanent repairs to damage caused by the January and March storms and an additional $9.5 million of expense to address medium and low priority work. Staff is currently in the process of identifying which of the medium and low priority work should be done, based upon need, availability of funding, and eligibility for reimbursement. The 2023-25 Financial Plan includes a recommended allocation of $2.75 million to address these damages in FY 2023- 24 (this funding supplements the $9 million use of operating reserve that has been programmed into the long-term forecast ($4.5 million in both the current year and next) for a total $11.75 million allocation for storm related response and repairs. Several emergency repair projects are already underway and some will begin in FY 2023-24, and will be paid for using the General Fund reserve as authorized by R-11391. All FY 2022-23 costs will be temporarily paid for using the reserve. The reserve will be replenished as FEMA or California Disaster Assistance Act (CDAA) reimbursement revenue is received or by using any available revenues over expenditures at year end.

To help offset the impact to the reserve, there is allocation of Local Revenue Measure (LRM) funding for storm related projects in 2023-25. The best-case scenario is that the City will receive substantial reimbursement and have the ability to reallocate the LRM budget towards future projects. Should maximum reimbursement not be achievable, use of the LRM budget provides a safeguard to the City’s budget or future year CIP budgets will be reduced to restore emergency reserves.

Photo credit: Jonathan Roberts
Financial Plan Page 74

Budget at a Glance
Investment in Strategic Plan through Major City Goal Work Programs Over the last seven years, the City’s most important goals have stayed relatively consistent and because of that, the City has been able to create ongoing work programs that help to achieve the goals on top of delivering core services. Programs such as the Office of DEI, Housing Policy and Programs, and the Mobile Crisis Unit were developed as Major City Goal work efforts, and are now part of ongoing City operations.

More broadly, all departments provide some degree of internal support to the lead departments in achieving Major City Goal efforts.

Graphic 8: City Programs that Support Major City Goals2 This graphic shows some of the core programs that help support Major City Goals. The budget next to the program is the total cost to operate the program (existing and new investments, as reflected in the operating budget section of the financial plan).
2 The intention of this graph is not to quantify total Major City Goal investment but provide context and order of magnitude on the investments into the City’s core services that help achieve Major City Goal work efforts.

Major City Goals
 Economic Resiliency, Cultural Vitality & Fiscal Sustainability  Housing & Homelessness
 Diversity, Equity, & Inclusion
 Climate Action, Open Space, & Sustainable Transportation Financial Plan Page 75

Budget at a Glance
Investment in Strategic Plan for Local Revenue Measure Funding For details on the individual objectives and work programs, please see the Strategic Priorities section. 33%
15%
13%
11%
8%
6%
4%
4%
3% 2%1%
Chart 9: 2023-25 LRM OPERATING USES ($61.2 M)
Street Maintenance and Transportation (includes bicycle and pedestrian improvements)($20.2M)
Community Safety and Emergency Preparedness ($9.3M)
Capital Reserve ($8 M)
Youth/Senior Services and Recreation Facilities ($6.6M) Creek and Flood Protection ($4.8M)
Open Space/Natural Areas Preservation and Maintenance
($3.9M)
Other Services and Projects ($10.4M)*
Safe and Clean Public Areas ($2.3M)
Address Homelessness ($1.6M)
Protect Financial Stability ($1M)
Economic Development and Business Retention ($850k)
Local Revenue Measure Priorities
 Protect Financial Stability
 Community Safety & Emergency Prep.
 Creek & Flood Protection
 Address Homelessness
 Safe & Clean Public Areas
 Economic Dev. & Business Ret.
 Youth/Senior Services
 Street Maintenance & Transp.
 Open Space Preservation & Maintenance
 Other Services and Projects
*Includes allocation to the capital reserve.

Financial Plan Page 76

Budget at a Glance
Where the Money Comes From
Revenue – General Fund
Like most municipalities in California, various tax revenues provide the largest source of revenue for the General Fund, financing most of the general government services. User fees for services revenue from this source will make up 13% of the anticipated revenue.

Tax and Franchise Revenue
Sales Tax revenue forecasts are based on the City’s sales tax consultant, HdL’s forecasts. There is no recession forecasted in 2023-25; however, assumptions include a flattening of sales tax and Transient Occupancy Tax with a conservative 2% growth in FY 2024-25. The County of San Luis Obispo provides Property Tax estimates, and the remaining tax revenue forecasts are based on historical trends and current economic conditions.

Table 11: Tax and Franchise Revenue FY 2023-24 FY 2024-25 Variance 1 Sales Tax - General $22,578,995 $23,166,049 3%
2 Prop 172 Sales Tax $498,988 $508,968 2%
3 Sales Tax - Local Revenue Measure $30,262,098 $30,897,602 2% 4 Property Taxes $15,524,672 $15,982,628 3%
5 Property Tax in Lieu of VLF $6,475,114 $6,669,367 3%
6 Transient Occupancy Tax $10,704,000 $10,918,080 2%
7 Utility User Tax $5,710,320 $5,881,630 3%
8 Franchise Fees $1,854,000 $1,910,000 3%
9 Business Tax $3,252,293 $3,317,338 2%
10 Cannabis Tax $1,100,000 $1,450,000 32%
11 Total $97,960,479 $100,701,662 3%
Fees for Service and Other Revenue
Fee revenue budgets are updated based on forecasted activity levels and annual CPI inflators (if applicable). The City will embark on a study in early June to evaluate its current fee structure. Per City policy, a comprehensive analysis of City costs and fees should be done at least every five years. The last fee study was done in 2017. The results of the fee study could lead to revenue forecast changes over the course of the 2023-25 Financial Plan.

Tax and Franchise
Revenue
87%
User Fees and Other Revenue
13%
Chart 10
Financial Plan Page 77

Budget at a Glance
1 Police Revenue $611,917 $611,917 0%
2 Fire Revenue $1,577,836 $1,577,836 0%
3 Development Review $6,275,536 $6,585,331 5%
4 Parks & Rec Revenue $2,021,599 $2,068,693 2%
5 Business Licenses $459,000 $468,000 2%
6 Cannabis Fee Revenue $207,600 $232,600 12%
7 Other Revenue $1,010,016 $1,010,016 0%
8 SB1 Road Repair $1,177,994 $1,259,276 7%
9 Grants and Subventions $664,511 $682,279 3%
10 Total $14,006,009 $14,495,948 3%
Tax and Fee Revenue Trends
The 2023-35 Financial Plan assumes a flattening of most revenue types followed by conservative growth in the outer years of the forecast. High fee revenues between fiscal years 19-20 and 20-21 were due to high interest earnings and record high development activity, resulting in building permit and plan check revenue. These were partially offset by reduced tax revenue remittals during the pandemic. $-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-25 24-25 25-26 26-27 27-28 In thousands
Graph 13: Tax and Fee Revenue Trends
Sales & Use Tax Property Tax Other Tax Revenue Total Fees & Other Revenue Voter approved Local
Sales Tax Measure
Table 12: User Fees and Other Revenue FY 2023-24 FY 2024-25 Variance Financial Plan Page 78

Budget at a Glance
What the Money is Spent On
The City of San Luis Obispo provides daily services to the community and incurs operating and capital expenditures. It fulfills the ongoing services in the General Fund through its employees in Public Safety, Parks & Recreation, Public Works, and Community Development which are supported by internal services departments such as Administration, City Attorney, Finance, and Human Resources. For each service, the capital cost of any equipment, infrastructure, or facility, needed to deliver the service, must be considered in addition to the ongoing operation and labor cost.

Like most municipalities, the City is faced with balancing rising costs, limited resources, and continuing to provide excellent levels of service to its citizens. This balance is achieved through the budget process when departments undertake the analysis of budget needs and examination of work programs to find economies and efficiencies that are expected of a prudent and fiscally conscious service organization.

The 2023-25 Financial Plan combines the strategic approach to the City Council’s Major City Goals, the priorities of the local sales tax measure, and the City’s efforts to recover from the 2023 storm events.

The City’s annual operating budget for the General Fund totals $88 million and includes programs reaching from Building and Safety, Development Review, Accounting, Purchasing, Emergency Response, Aquatics, Golf, Senior Services, Police Patrol, Traffic Safety, Streets & Sidewalk Maintenance, Transportation Planning, Sustainability, and the Urban Forest.

Table 14: General Fund Operating Budget by Category3
DEPARTMENT 2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget
1 Internal Services:
2 Administration and IT $9,642,495 $10,453,389 $10,849,831 $11,003,659 3 City Attorney $1,374,705 $1,305,660 $1,425,044 $1,497,103 4 Finance & Non-departmental $3,051,001 $5,229,942 $3,880,664 $5,216,654 5 Human Resources $1,934,741 $1,684,948 $2,141,185 $2,246,535 6 Community Safety/Neighborhood Services:
7 Fire $17,074,525 $14,515,112 $15,273,559 $15,554,762
8 Police $22,581,983 $20,866,264 $22,086,053 $22,607,072 9 Community Services Group:
10 Community Services Group
Administration $660,112 $573,066 $740,534 $778,730
11 Community Development $7,810,879 $6,783,059 $8,212,711 $8,510,146 12 Parks and Recreation $5,122,628 $5,251,052 $5,706,331 $5,899,998 13 Public Works $15,580,965 $16,144,599 $17,718,046 $18,328,375 14 Solid Waste $185,882 $317,456 $341,459 $349,657
15 TOTAL GENERAL FUND $85,019,917 $83,124,548 $88,375,417 $91,992,693 3 Does not include transfers, cost allocation reimbursements, or projected operating budget savings.

Financial Plan Page 79

Budget at a Glance
Table 15: Operating Budget Overview – General Fund
Program Enhancements
Program enhancements were included in the 2023-25 Financial Plan to adjust for forecasted workload and service level requirements set forth within the strategic direction and service expectations. As such the requests consider the following components:

A. Essential for the protection of health and safety.

B. Needed for the advancement of Major City Goals.

C. Needed to provide ongoing services to the community.

Table 16: General Fund SOBCs FY 23-24 FY 24-25 Total
1 One-time $1,494,767 $1,367,867 $2,847,633
2 General Fund $754,217 $731,917 $1,471,134
3 Funding Offset - Economic Development $396,000 $396,000 $792,000 4 Funding Offset - Affordable Housing Fund $150,000 $150,000 $300,000 5 Funding Offset - IT Fund $104,000 - $104,000
6 Funding Offset - Public Art Fund $90,550 $89,950 $180,500 7 Ongoing $478,907 $489,444 $968,351
8 General Fund $478,907 $489,444 $968,351
9 TOTAL $1,973,674 $1,857,311 $3,815,985
Staffing
72%
Contract
Services
9%
Other
Operating
Costs…
Transfers Out
7%
Debt Service
2%
Operating Budget by Type
Public Safety/Neighborhood
Services
43%
Internal
Services
20%
Community
Services
37%
Operating Budget by Category
Financial Plan Page 80

Budget at a Glance
Capital Budget – General Fund
The City’s 20-year capital budget is a plan that identifies projects, needed funding, and timelines including the impact of multi-year, and multi-department projects. Capital requirements are driven by the need to maintain, upgrade, or replace existing ageing infrastructure, meet industry standards, population growth and invest in new capital assets in alignment with the City’s major city goals and community need.

The Capital budget incorporates funding from the General Fund, the Local Revenue Measure, grants, and various impact fees. The plan includes projects such as bridge replacements, street rehabilitation, urban forest care, facilities and parks maintenance, and playground equipment.

Total General Fund Capital Expenditures
71%
20%
4%
2% 2% 1%
Chart 17: Capital Investment by Governmental Fund
Capital Outlay Fund Infractructure Investment Fund IT Replacement Fleet Replacement Major Facility Maintenance Public Art Fund Financial Plan Page 81

Budget at a Glance
Table 18: Capital Expenditures
CIP by Fund (in thousands) 2023-24 2024-25 Variance
Capital Outlay $22,528,972 $23,155,166 3%
Fleet $805,000 $685,000 -15%
IT Replacement $869,028 $1,446,656 66%
Major Facilities Maintenance $822,000 $423,178 -49%
Infrastructure Investment $200,000 $12,750,000 6275%
Public Art Fund $325,000 $300,000 -8%
Total CIP Investment $25,550,000 $38,760,000 3%
Table 19: Repayment of General Fund Debt
Debt Issue – Asset Outstanding
Principal Annual Payment Final Year
FY 2024
2012 Refunding Bond (Damon Garcia Sport Fields) $2,415,000 $395,500 2030 2014 Revenue Bond – LOVR Overpass $6,275,000 $420,531 2045 2018 Refunding Bond (919 Palm Street & Dispatch Center) $8,904,430 $942,975 2039 2018 Lease – Fire Truck $36,245 $36,533 2024
2014 State Loan – Energy Conservation $46,886 $47,121 2024 Lease – Golf Carts $50,640 $11,014
$17,728,200 $1,853,674
General Fund Reserve Levels
Per the City’s Fiscal Policies (see Reference Material), the City maintains a minimum fund balance of 20% of operating expenditures in the General Fund. This is considered the minimum level necessary to maintain the City’s credit worthiness and to adequately address:
 Economic uncertainties, local disasters, and other financial hardships or downturns in the local or national economy.
 Contingencies for unforeseen operating or capital needs.  Cash flow requirements.

In addition, the City now maintains a capital reserve of 20% of the annual Local Revenue Measure capital budget to offset unanticipated cost increases and unforeseen conditions and thus provides for continued investment in infrastructure maintenance and enhancement according to the adopted project list. The reserve will be accounted for in the Capital Outlay Fund. 2023-24 2024-25
General Reserve4 $ 11.6 million $ 14.5 million
Capital Reserve $ 4 million $ 4 million
4 The City will use its operating reserve as needed in FY 2022-23 and FY 2023-24 to offset storm recovery costs but will replenish it back to the 20% reserve level, consistent with policy requirements, in FY 2024-25 (or as soon as reimbursement is collected). If full eligible reimbursement costs are not achieved (93.75%), then reductions will be made in future CIP.

Financial Plan Page 82

CONSOLIDATED FINANCIAL PLAN
Financial Plan Page 83

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Financial Plan Page 84

Consolidated Financials
Combined Financials for all Major and Special Revenue Funds Table C-1: Total Funding Sources – All Funds Combined
Revenue 2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget
%
Change
1 Tax & Franchise Revenue $94,247 $95,942 $97,960 $100,702 3% 2 Service Charges & Other Revenue
3 General Fund1 $13,052 $12,593 $14,006 $14,495 3%
4 Water Fund $25,525 $25,605 $27,284 $28,554 5%
5 Sewer Fund $19,290 $20,605 $21,457 $20,799 -3%
6 Parking Fund $5,164 $6,531 $10,203 $10,413 2%
7 Transit Fund $3,786 $14,857 $11,755 $11,965 2%
8 Assessment Revenue $2,339 $2,398 $2,416 $2,465 2%
9 10 Proceeds from Debt Financing
11 Water Fund $2,397 $873 $873 $0 -100%
12 Sewer Fund $46,556 $31,132 $31,132 $0 -100%
13 Parking Fund $0 $0 $46,315 $0 -100%
14 Total $212,357 $210,535 $263,402 $189,392 -28%
In thousands
1 Excludes estimates for storm reimbursements. See General Fund Forecast for detail.

Tax & Franchise
Revenue
44%
Service Charges
& Other
Revenue
39%
Proceeds from
Debt Financing
17%
Financial Plan Page 85

Consolidated Financials
Table C-2: All Expenditures Combined – By Fund
Expenditures 2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget % Change
General Fund2 $113,808 $107,805 $114,317 $114,754 0%
Business Activities
Water Fund $27,154 $41,573 $32,040 $31,614 -1%
Sewer Fund $52,840 $89,819 $23,028 $23,784 3%
Parking Fund $6,718 $14,180 $57,699 $10,230 -82%3
Transit Fund $3,658 $7,130 $10,302 $9,612 -7%
Special Revenue
Tourism Assessment $1,642 $1,577 $2,129 $2,168 2%
Downtown Assessment $222 $275 $275 $281 2%
Total $206,042 $262,359 $239,791 $192,443 -20%
In thousands
2 Excludes estimates for storm expenditures. See General Fund Forecast for details. 3 Variance due to budget for Cultural Arts District Parking Structure construction included in FY 2023-24. See Parking Section for detail.

General Fund
53%
Water Fund
15%
Sewer Fund
11%
Parking Fund
16%
Transit Fund
4%
Tourism
Assessment
1%
Downtown
Assessment
<0%
Financial Plan Page 86

Consolidated Financials
Table C-3: All Expenditures Combined – By Category
Expenditures 2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget
%
Change
Staffing $80,132 $78,339 $81,078 $84,820 5%
Contract Services $13,694 $16,223 $17,069 $16,795 -2%
Other Operating Expenses $26,228 $31,708 $33,261 $34,671 4% Capital Investment $79,448 $129,422 $99,081 $41,396 -58%4 Debt $6,539 $6,666 $9,302 $14,761 59%5
Total $206,042 $262,359 $239,791 $192,443 -20%
In thousands
4 Variance due to budget for Cultural Arts District Parking Structure construction included in FY 2023-24. See Parking Section for detail.
5 Increase due to payment of debt for Cultural Arts District Parking Structure starting in FY 2024-25. See Parking Section for details.

Staffing
38%
Contract Services
8% Other Operating
Expenses
16%
Capital
Investment
32%
Debt
6%
Financial Plan Page 87

Consolidated Financials
Table C-4: Fund Reserves
Fund Reservesi
2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget
General Fund
Operating $12,014 $13,727 $11,596 $14,526
Capital Outlay $3,426 $4,008 $4,000 $4,000
Water Fund $4,290 $4,719 $5,039 $5,259
Sewer Fund $2,320 $2,566 $2,745 $4,031
Parking Fund $840 $882 $991 $958
Transit Fund $715 $850 $850 $1,163
In thousands
Table C-5: Undesignated Fund Balance
Undesignated Fund
Balance/Working Capital
2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget
General Fund $3,364 $1,644 $- $121
Water Fund $27,973 $13,521 $9,249 $5,872
Sewer Fund $41,352 $3,971 $30,274 $25,846
Parking Fund $9,092 $1,277 $1,010 $1,164
Transit Fund $2,108 $9,686 $10,838 $13,154
In thousands
i
For policy requirements, please see Financial Policies in Reference Section Financial Plan Page 88

General Fund Five‐Year Forecast
(In Thousands)
Footnote
(A)
Actual
2021‐22
(B)
Budget
2022‐23*
(C)
Budget
2023‐24
(D)
Forecast
2024‐25
(E)
Projected
2025‐26
(F)
Projected
2026‐27
(G)
Projected
2027‐28
Tax & Franchise Revenue
1 Sales & Use Tax       51,665         52,163             53,340         54,573           55,988           57,465           59,127 2 Sales Tax General       21,524 22,247          22,579             23,166         23,768          24,410          25,118 3 Public Safety (Prop 172) 529            497 499  509              519               530                540 4 Measure G20        30,142 28,889          30,262             30,898         31,701          32,525          33,468 5 Property Tax        20,711          21,473              22,000         22,652             23,332             24,032             24,752 6 Transient Occupancy Tax       10,651         10,704             10,704         10,918           11,136           11,359           11,586 7 Utility Users Tax         5,420            5,544               5,710            5,882             6,058             6,240             6,365 8 Franchise Fees          1,978            1,800               1,854            1,910             1,967             2,026             2,067 9 Business Tax Certificates         2,823            3,158               3,252            3,317             3,417             3,519             3,590 10 Cannabis Tax             999            1,100               1,100            1,450             1,650             1,700             1,733 11 Total Tax & Franchise Revenue $     95,942 94,247 $       $          100,702 97,960 $     103,549$      106,340$      $     109,220 12 Fees for Service & Other Revenue
13 Police Services             555               688 612               612                624                637                649 14 Fire Services         1,502            1,458               1,578            1,578             1,609             1,642             1,674 15 Development Review         6,117            6,335               6,276            6,585             6,783             6,986             7,126 16 Parks & Recreation         1,718            1,969               2,022            2,069             2,110             2,152             2,174 17 Business Licenses             498               446 459               468                477                487                497 18 Cannabis Licenses             127               210 208               233                237                242                247 19 Other Revenues             466               711               2,188            2,269             2,376             2,473             2,574 20 Subventions & Grants         2,068               777 665               682                440                441                442 21 Storm Reimbursment ‐ ESTIMATE     1 4,208  4,208
22 Total Fees & Other Revenue  $    13,052   $      12,593   $         18,214   $      18,703   $       14,657   $       15,059   $       15,383 23 Total Revenue  $ 107,299   $    108,535   $       116,174   $    119,405   $     118,206   $     121,400   $     124,604 24 Use of Funds
25 Staffing       67,639         65,401             67,427         70,620           71,968           73,672           75,279 26 Contract Services         7,836            9,575               9,380            9,249             8,822             8,998             9,178 27 Other Operating Expenditures         9,555            9,976               9,858            9,943             9,537             9,728             9,922 28 Cost Allocation        (4,717)          (4,462)              (5,419)          (5,582)            (5,694)            (5,808)            (5,924) 29 Encumbrances from prior year            2,542
30 Storm Expenditures ‐ ESTIMATE 1 4,500           4,500 31 Total Operating Expenditure  $    80,313   $      87,533   $         85,746   $      84,229   $       84,633   $       86,591   $       88,456 32 Debt Service         1,997            1,992               1,854            1,769             1,761             1,550             1,549 33 Capital         30,575         22,484             29,728         27,269           27,868           28,488           29,123 34 Transfers Out/(In)             923               296               1,490            1,487             1,896             2,263             2,678 35 Total Expenditure  $ 113,808   $    112,305   $       118,817   $    114,754   $     116,157   $     118,890   $     121,806 36          2,000             2,000                 2,000             2,000               2,000               2,000               2,000 37 Beginning Fund Balance (After
CalPERS ADP)  $    45,118   $      36,609   $         30,840   $      26,196   $       28,847   $       28,896   $       29,406 38 Revenue Over/(Under) Expenses   $    (6,509)  $      (3,770)  $          (2,643)  $        4,651   $          2,049   $          2,509   $          2,797 39 Ending Fund Balance  $    38,609   $      32,840   $         28,196   $      30,847   $       30,896   $       31,406   $       32,203 40 General Fund Reserve (see line 45)       12,014         13,727             11,596         14,526           14,651           15,077           15,516 41 Revenue Stabilization Reserve         2,000            2,000               2,000            2,000             2,000             2,000             2,000 42 115 Pension Trust Fund         2,000            2,000               2,000            2,000             2,000             2,000             2,000 43 Restricted based on Audit       19,232         13,468             12,600         12,200           12,200           12,200           12,200 44 Undesignated Fund Balance  $      3,364   $        1,644   $                   0   $            121   $               45   $             129   $             487 45 Reserve funded level (Policy=20%) 20% 17% 20% 20% 20% 20% 2023‐25 Financial Plan
*FY 2022‐23 budget includes approved carryover, encumbrances, and budget amendments made throughout the year. 1 ‐ Unplanned storm response expenditures will be paid for out of the General Fund reserve. See "Budget at a Glance" section for detail. This is not a budget appropriation but an estimate included in the forecast for planning purposes.

CalPERS Additional Discretionary Payment
(using prior year fund balance)
Table 20: General Fund Five Year Forecast
Financial Plan Page 89

(A) (B) (C) (D) (E) (F) (G)
Actual Budget Projected Projected Projected Projected Projected 2021‐22 2022‐23 2023‐24 2024‐25 2025‐26 2026‐27 2027‐28 1 Revenue $    27,922 26,478$     28,156$     28,554$     38,754$     32,185$     $    33,657 2 Charges for Services        24,148        24,440        26,384        28,352        30,552        31,983        33,455 3 46102‐Development Review Fees               22               26               26               26               26               26               26 4 46701‐Sales to Cal Poly          1,140          1,045          1,106          1,184          1,340          1,458          1,558 5 46702‐Water Sales        16,110        16,329        17,717        19,045        20,474        21,395        22,358 6 46703‐Utilities Base Charges          5,615          5,754          6,243          6,712          7,215          7,540          7,879 7 46704‐Reclaimed Water Sales          1,210             995          1,080          1,161          1,248          1,304          1,363 8 46708‐Utilities Set‐up Fees             177             130               60               60               60               60               60 9 46709‐Other Utilities Charges                  0                  1                  1                  1                  1                  1                  1 10 46712‐Low Income Subsidy              (15)            (100)            (100)            (100)            (100)            (100)            (100) 11 46713‐Cal Poly Capacity & Resilience             114             259             251             263             288             299             310 12 46799‐Use of COVID Rate Relief Program             (225) ‐  ‐  ‐  ‐  ‐  ‐ 13 Fines, Forefeitures, and Penalties             143             118             118             118             118             118             118 14 Grants and Subventions          1,849             963             698 ‐  ‐  ‐  ‐ 15 Miscellaneous Fees and Special Assessments               49 ‐  ‐  ‐  ‐  ‐  ‐ 16 Licenses, Permits, and Franchises               40 ‐  ‐  ‐  ‐  ‐  ‐ 17 Long‐Term Debt Proceeds1          2,397             873             873 ‐           8,000 ‐  ‐ 18 Other General Government Revenue2            (704)               84               84               84               84               84               84 19 Impact Fees $        1,370$        5,162 $           800$           800$           800$           800 800 $ 20 Impact Fees3          5,162          1,370             800             800             800             800             800 21 Expenditure by Category $    27,154 41,573$     32,040$     31,614$     39,338$     34,510$     $    35,531 22 Capital Asset Expense4          5,706        17,976          6,845          5,319        11,979          5,826          5,975 23 Debt Services          2,307          2,443          1,870          1,869          1,866          2,391          2,390 24 General Government          2,517          2,312          2,826          3,250          3,738          3,924          4,121 25 Operations        11,449        13,593        14,995        15,474        15,877        16,309        16,798 26 Salaries and Benefits          5,175          5,249          5,503          5,702          5,878          6,060          6,247 27 Expenditure by Function $    27,154 41,573$     32,040$     31,614$     39,338$     34,510$     $    35,531 28 Water Administration/Engineering          3,663          1,499          1,514          1,607          1,675          1,698          1,748 29 Water Source of Supply        11,072        14,753        11,930        12,436        13,207        12,884        13,885 30 Water Treatment          4,593        11,848          7,984          8,502          7,583          9,058          8,461 31 Water Distribution          3,772          8,629          6,691          4,675        12,101          5,855          6,184 32 Water Resources             501             606             634             623             642             662             682 33 Utility Billing             266             308             324             346             356             367             378 34 General Government          2,517          2,312          2,826          3,250          3,738          3,924          4,121 35 Non Departmental5             772          1,618             136             175               35               62               72 36 Change in Financial Position (Revenues minus   $      5,930  (13,725) $    $     (3,083) (2,260)$      $           (1,525) 216 $      (1,074)$ 37 Working Capital ‐Beginning        28,503        34,725        20,729        16,967        14,001        14,052        12,362 38 CALPERS ADP             272             272             679             706             165             165             165 39 Working Capital ‐ After CALPERS6  $    34,725  20,729 $     16,967$     14,001$     14,052$     12,362$     $    11,123 40 Operating Reserve (20%)          4,290          4,719          5,039          5,259          5,472          5,737          5,911 41 Rate Stabilization (10%)          2,286          2,313          2,507          2,694          2,903          3,039          3,179 42 UFL Trust Fund             176             176             176             176             176             176             176 43 Unreserved Working Capital Year End $    27,973 13,521$     $        5,872$        5,501$        3,411$        1,857 9,246 $ 4 Includes carryover balances for multi‐year CIP projects. 5 Non‐Departmental includes staffing contingencies, miscellaneous CIP expenditures, and assigned project balances. 6 Working Capital reflects audit adjustments.
2023‐25 Financial Plan
in thousands
1 This includes the loan for the Water Treatment Plant Efficiency Project and a forecasted loan for the 30" Pipeline Replacement on Santa Rosa between Stenner Creek and Highland.
3 Impact fees are separated from other water revenues because they are restricted to activities compliant to AB 1600 (Government Code §§ 66000 et seq), and cannot be used for general water operations. 2 Other General Government Revenue includes a fair market adjustment for investments in 2021‐22.

Table 21: Water Fund Five Year Forecast
Financial Plan Page 90

(A) (B) (C) (D) (E) (F) (G)
Actual Budget Projected Projected Projected Projected Projected 2021‐22 2022‐23 2023‐24 2024‐25 2025‐26 2026‐27 2027‐28 1 Revenue 65,846$       51,737$       52,590$       20,799$       21,544$       22,329$       23,026$ 2 Charges for Services         19,852         18,934         19,784         20,512         21,257         22,042         22,739 3 46102‐Development Review Fees                 22                 26                 26                 26                 26                 26                 26 4 46104‐Wye Abandonment/Installation Fees 5 ‐  ‐  ‐  ‐  ‐  ‐ 5 46701‐Sales to Cal Poly           1,147           1,026           1,013           1,008               991               984               960 6 46703‐Utilities Base Charges           4,893           4,816           5,008           5,209           5,417           5,634           5,831 7 46705‐Sewer Service Charges         13,342         12,792         13,304         13,836         14,389         14,965         15,489 8 46708‐Utilities Set‐up Fees               205                 60                 60                 60                 60                 60                 60 9 46709‐Other Utilities Charges 9                 70 1 1 1 1 1 10 46712‐Low Income Subsidy                (13)             (100)             (100)             (100)             (100)             (100)             (100) 11 46713‐Cal Poly Capacity & Resilience               244               244               473               473               473               473               473 12 Fines, Forefeitures, and Penalties               145               120               118               118               118               118               118 13 Grants and Subventions                 97           1,386           1,386 ‐  ‐  ‐  ‐ 14 Miscellaneous Fees and Special Assessments                 53 ‐  ‐  ‐  ‐  ‐  ‐ 15 Licenses, Permits, and Franchises                 87                 85                 85                 85                 85                 85                 85 16 Long‐Term Debt Proceeds1         46,556         31,132         31,132 ‐  ‐  ‐  ‐ 17 Other General Government Revenue2             (945)                 80                 84                 84                 84                 84                 84 18 Impact Fees 3,826$         1,190$         600$             600$             600$             600$             600$ 19 Impact Fees3           3,826           1,190               600               600               600               600               600 20 Expenditure by Category 52,840$       89,819$       23,028$       23,784$       29,192$       23,290$       32,887$ 21 Capital Asset Expense4         41,240         76,988           9,305           3,631           8,090           1,689         10,761 22 Debt Services           1,380           1,381           1,382           7,006           7,099           7,090           7,088 23 General Government           2,368           2,574           3,104           3,570           4,105           4,311           4,526 24 Operations           2,668           3,632           3,746           3,850           3,995           4,115           4,239 25 Salaries and Benefits           5,184           5,245           5,491           5,727           5,903           6,085           6,273 26 Expenditure by Function 52,840$       89,819$       23,028$       23,784$       29,192$       23,290$       32,887$ 27 Wastewater Admin and Eng           2,746           2,837           2,965           2,889           2,959           2,983           3,036 28 Wastewater Collection           4,506         22,009         10,337           4,866           7,199           2,903           8,023 29 Environmental Programs               265               282               319               326               336               386               427 30 Water Resource Recovery         41,607         60,290           4,960           4,955           7,429           5,481           9,593 31 Utility Billing               272               310               324               346               356               367               378 32 Water Quality Lab               698               922               864               844               870               897               924 33 General Government           2,368           2,574           3,104           3,570           4,105           4,311           4,526 34 Non Departmental5               378               595               154               180                 35                 59                 76 35 SRF Loan ‐  ‐  ‐            5,809           5,903           5,903           5,903 36 Change in Financial Position 16,832$       (36,892)$     30,161$       (2,385)$        (7,048)$        (362)$           (9,261)$ 37 Working Capital ‐Beginning         35,237         47,774         10,603         40,072         36,967         29,749         29,218 38 CALPERS Additional Pmt               280               280               692               721               169               169               169 39 Working Capital ‐ After CALPERS6 47,774$       10,603$       40,072$       36,967$       29,749$       29,218$       19,787$ 40 Operating Reserve (20%)           2,320           2,566           2,745           4,031           4,221           4,320           4,425 41 Rate Stabilization (5%)               969               932               966           1,003           1,040           1,079           1,114 42 Other Reserves (i.e. UFL Trust Fund, SRF Loan)           3,134           3,134           6,087           6,087           6,087           6,087           6,087 43 Unreserved Working Capital Year End 41,352$       3,971$         30,274$       25,846$       18,401$       17,731$       8,161$ 4 Includes carryover balances for multi‐year CIP projects. 5 Non‐Departmental includes staffing contingencies, miscellaneous CIP expenditures, and assigned project balances. 6 Working Capital reflects audit adjustments.
2023‐25 Financial Plan
in thousands
3 Impact fees are separated from other sewer revenues because they are restricted to activities compliant to AB 1600 (Government Code §§ 66000 et seq), and cannot be used for general sewer operations.
1 This includes the State Revolving Fund Loan for the Water Resource Recovery Facility upgrade. The City anticipates that loan repayment will begin July 2 Other General Government Revenue includes a fair market adjustment for investments.

Table 22: Sewer Fund Five Year Forecast
Financial Plan Page 91

(A)
Actual
2021‐22
(B)
Budget
2022‐23
(C)
Budget
2023‐24
(D)
Forecast
2024‐25
(E)
Projected
2025‐26
(F)
Projected
2026‐27
(G)
Projected
2027‐28
Revenue
1 Federal ‐ 5307 Operating      1,678,604       2,647,859      1,694,054      1,727,935      1,762,494 2 Federal ‐5307 Preventative
Maintenance         198,609  ‐          210,765         214,980         219,280 3 Federal ‐ 5307 Capital      4,799,979     3,471,830    3,575,985      3,647,504      3,720,455      3,794,864 4 State TDA (Transportation
Development Act) STA         305,458          359,404         443,547        456,853         470,559         484,676         499,216 5 State TDA LTF      1,018,950       1,794,954     2,727,295    2,809,114      2,893,387      2,980,189      3,069,594 6 State ‐ APCD (Air Pollution Control  ‐  ‐  ‐  ‐  ‐  ‐  ‐ 7 PG&E Grant ‐  ‐  ‐  ‐
8 Farebox Revenue         172,957          200,000         240,000        250,000         260,000         260,000         260,000 9 Cal Poly Agreement         537,500          650,000         750,000        750,000         772,500         795,675         819,545 10 State ‐ SB1 ‐  ‐              8,722            8,722              8,722              8,722              8,722 11 State ‐ LCTOP (Low Carbon Transit Ops
Program) ‐          291,000 ‐  ‐  ‐  ‐  ‐
12 ARPA Discretionary ‐       4,100,000     4,100,000    4,100,000 ‐ ‐  ‐ 13 FTA 5339 B Discretionary  ‐  ‐  ‐  ‐  ‐  ‐  ‐
14 Interest on Investment             51,618             13,313           13,579          13,851            14,128            14,410            14,699 15 Investment FMV Adjustment        (186,365) ‐  ‐  ‐  ‐  ‐  ‐ 16 Misc Revenue                 152  ‐  ‐  ‐  ‐  ‐  ‐
17 State of Good Repair (SGR)              8,468  ‐  ‐  ‐  ‐  ‐  ‐ 18 Federal Stimulus Grants                 149  ‐  ‐  ‐  ‐  ‐  ‐ 19 TOTAL REVENUES $3,786,100 $14,856,509 $11,754,973 $11,964,524 $9,971,619 $10,207,042 $10,448,413 20 Expenditures & Obligations
21 Staffing         334,738         306,115         457,758        474,693         498,428         523,349         549,516 22 Contract Services      2,427,829       2,895,950     3,078,597    3,078,597      3,170,955      3,266,084      3,364,066 23 Fuel         340,952         320,000         350,000        385,000         385,000         385,000         385,000 24 Maintenance         205,794         240,000         255,000        265,000         283,550         303,399         324,636 25 Other Operating Expenditures           39,422         124,513     1,089,516    1,136,506      1,193,331      1,252,997      1,315,647 26 Cost Allocation Transfer to GF         226,183         365,544         463,491        477,396         486,944         496,683         506,616 27 Capital           83,057      2,878,157     4,607,466    3,794,674      4,260,629         232,295      4,152,812 28 TOTAL Expenditures & Obligations: $3,657,975 $7,130,279 $10,301,827 $9,611,865 $10,278,836 $6,459,806 $10,598,294 29 CHANGES IN FINANCIAL POSITION
30 Beginning Fund Balance $2,715,598 $2,823,007 $10,536,682 $11,977,273 $14,317,377 $13,997,606 $17,732,287 31 Revenue Over/(Under) Expenses         128,125        7,726,230     1,453,146      2,352,659         (307,217)       3,747,236     (149,881) 32 Ending Fund Balance before CalPERS $2,843,723 $10,549,237 $11,989,828 $2,352,659 $14,010,161 $17,744,842 $17,582,406 33 CalPERS Additional Discretionary
Payment            20,716             12,555             12,555            12,555             12,555             12,555             12,555 34 Ending Fund Balance $2,823,007 $10,536,682 $11,977,273 $14,317,377 $13,997,606 $17,732,287 $17,569,851 35 Policy Reserve Level ‐ 20%         714,984         850,424         850,424    1,163,438      1,203,641      1,245,502      1,289,096 36 Undesignated Fund Balance $2,108,023 $9,686,258 $10,838,401 $13,153,939 $12,793,964 $16,486,784 $16,280,754 2023‐25 Financial Plan
Table 23: Transit Fund Five Year Forecast
Financial Plan Page 92

Table 24: Parking Fund Five Year Forecast
Financial Plan Page 93
(A)
Actual
2021‐22
(B)
Budget
2022‐23*
(C)
Budget
2023‐24
(D)
Forecast
2024‐25
(E)
Projected
2025‐26
(F)     Proje
2026‐27
(G)     Proje
2027‐28

REVENUES
1 Service Charges
2 Parking Meter Revenues      2,210,191        2,268,500         4,876,000        4,876,000        5,688,700        5,688,700        5,688,700 3 Parking Structure Collections         999,138        1,328,450         3,242,100        3,388,400        3,655,700        3,655,700        3,667,300 4 Long‐Term Parking Revenues         623,639           844,900            695,300           766,300           768,800           743,500           759,500 5 Lease Revenues         635,545           487,800            456,300           456,300           456,300           456,300           456,300 6 Parking In‐Lieu Fees                  ‐              20,600               23,824              23,824              23,824              23,824              23,824 7 Total Services Charges      4,468,514        4,950,250         9,293,524        9,510,824     10,593,324     10,568,024     10,595,624 8 Fines & Forfeitures         928,636           793,500            852,100           852,100           852,100           852,100           852,100 9 Interest on Investment        (348,317)              62,000               19,900              11,900              12,100              17,900              22,800 10 Transfer in from GF (ARPA)           700,000
11 Other Revenues 115,393              25,000               37,800              37,800              54,200              43,300              45,100 12 TOTAL REVENUES      5,164,226        6,530,750       10,203,324     10,412,624     11,487,924     11,470,124     11,501,024 13 Proceeds from Debt Financing**       46,315,169
14 TOTAL REVENUES INCL. DEBT FINANCING      5,164,226         6,530,750        56,518,493     10,412,624     11,487,924     11,470,124     11,501,024 15 EXPENDITURES
16 Staffing 1,574,054 1,917,920         1,922,948        2,006,346        2,092,534        2,182,721        2,279,268 17 Contract Services         786,535           584,065            895,746           607,661           619,814           632,211           644,855 18 Other Operating Expenditures         552,351           623,459            702,860           694,888           738,601           799,681           867,973 19 General Government (CAP)         869,887           872,976         1,019,048        1,049,619        1,102,100        1,157,205        1,215,066 20 Operating Transfers Out         235,233           235,233            368,233           372,223           376,333           380,566           384,926 21 Total Operating Expenditures      4,018,060         4,233,653       4,908,835         4,730,737         4,929,382         5,152,384         5,392,087 22 Easement Expenses (one‐time) ‐               755,000  ‐    ‐ 23 Capital Improvement Plan Projects  1,844,160        8,340,700     48,594,961         1,382,467         1,631,665         1,702,292         1,107,600 24 TOTAL DEBT SERVICE** 855,278           850,841          4,195,421         4,117,141         4,038,829         3,960,482         3,882,099 25 TOTAL EXPENDITURES      6,717,497     14,180,195       57,699,217       10,230,346       10,599,876       10,815,158       10,381,786 CHANGES IN FINANCIAL POSITION
26 BEGINNING FUND BALANCE    11,585,166         9,931,200           3,287,929         2,061,818         2,179,200         3,067,152      3,722,019 27 Revenue Over/(Under) Expenses ($1,553,271) ($7,649,445) ($1,180,724)            182,278             887,952             654,867    1,119,160 28 ENDING BALANCE/WORKING CAPITAL
BEFORE CALPERS ADP    10,031,895         2,281,755           2,107,206         2,244,096         3,067,152         3,722,019         4,841,178 29 CalPERS ADP          100,654               61,896                45,388               64,896               64,896               64,896               64,896 30      9,931,241         2,219,859           2,061,818         2,179,200         3,067,152         3,722,019         4,841,178 31 ENDING BALANCE/WORKING CAPITAL
Policy Reserve Level ‐ 20%         839,582           882,350            990,725           954,091           992,776        1,036,300        1,083,132 32 CalPERS 115 Trust Fund              61,003               61,003              61,003              61,003              61,003              61,003 33 UNRESERVED WORKING CAPITAL       9,091,658         1,276,506       1,010,090         1,164,106         2,013,373         2,624,716         3,697,043 2023‐25 Financial Plan
* Includes budget adjustments made throughout the year
**Debt service number for FY 2023‐24 and beyond also includes the anticipated debt payment for CAD‐PS which Council will take action on at a later date.

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Financial Plan Page 94

OPERATING BUDGETS – GENERAL FUND
Financial Plan Page 95

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Financial Plan Page 96

Operating Budgets
Fee Revenue
Fee Revenue by Category
Part of the City’s revenue comes from cost recovery fees for services to the community and rendered by the City’s operating departments. The cost recovery levels are determined every five years and approved by the City Council. The levels of cost recovery are defined in the City’s adopted financial policies.

User Fee Cost Recovery Levels
In setting user fees and cost recovery levels, the following factors are considered:

1. Community-Wide Versus Special Benefit. The level of user fee cost recovery should consider the community-wide versus special interest nature of the program or activity.

The use of general-purpose revenues is appropriate for community-wide services, while user fees are appropriate for services that are of special benefit to easily identified individuals or groups.

2. Service Recipient Versus Service Driver. After considering community-wide versus special interest benefit of the service, the concept of service recipient versus service drivershould also be considered. For example, it could be argued that the applicant is not the beneficiary of the City's development review efforts: the community is the primary beneficiary. However, the applicant is the driver of development review costs, and as such, cost recovery from the applicant is appropriate.

3. Effect of Pricing on the Demand for Services. The level of cost recovery and related pricing of services can significantly affect the demand and subsequent level of services provided. At full cost recovery, this has the specific advantage of ensuring that the City is providing services for which there is genuinely a market that is not overly stimulated by artificially low prices.

Conversely, high levels of cost recovery will negatively impact the delivery of services to lower income groups. This negative feature is especially pronounced, and works against public policy, if the services are specifically targeted to low-income groups.

4. Feasibility of Collection and Recovery. Although it may be determined that a high level of cost recovery may be appropriate for specific services, it may be impractical or too costly to establish a system to identify and charge the user. Accordingly, the feasibility of assessing and collecting charges should also be considered in developing user fees, especially if significant program costs are intended to be financed from that source.

Financial Plan Page 97

Operating Budgets
Fee Revenue
Table R-1: Fire
Service 2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget
1 Fire Department Permits 98,529 108,000 108,000 108,000 2 Fire Alarm Permits 10,994 10,010 10,010 10,010
3 Fire Plan Check & Inspection 379,865 350,000 350,000 350,000 4 Medical ER Recovery 201,991 216,938 218,452 218,452
5 R1 Inspection Fees 329,197 357,525 351,000 351,000
6 Cal Poly Fire Services 273,567 361,684 361,684 361,684 7 CUPA Inspection Fees 187,019 172,800 172,800 172,800
8 Other Fire Dept Revenue 21,195 5,890 5,890 5,890
9 Total Fire Revenue 1,502,356 1,582,847 1,577,836 1,577,836 Table R-2: General Government & Other Revenue
Service 2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget
1 Business Licenses 498,089 445,911 459,000 468,000
2 Cannabis Operator License 127,380 177,000 207,600 232,600 3 Other Revenue 465,600 529,930 2,188,010 2,269,292
4 Interest on Investment1(1,194,319) (1,270,000) 230,000 230,000 5 Fines and Forfeitures 134,699 153,071 153,071 153,071 6 Miscellaneous Revenue 613,360 626,945 626,945 626,945 7 SB1 – Road Maintenance 911,849 1,019,914 1,177,994 1,259,276 8 Grants & Subventions 2,067,135 587,328 664,511 682,279 9 Zone 9 Streambed Clearance 81,166 120,000 120,000 120,000 10 Police Training Grant (POST) 65,800 - 50,000 50,000
11 Law Enforcement SB229 Grant 145,185 140,000 140,000 140,000 12 AB939 Reimbursement 190,196 327,328 354,511 372,279
12 Other Grants/Subventions2 1,584,787 - - -
13 Total Other Revenue ($) 3,158,208 1,740,169 3,519,121 3,652,171 1 The City experienced significant negative Fair Market Value adjustments in FY 2021-22 and FY 2022-23, explaining the negative revenue. This revenue source is highly volatile and dependent on market conditions. The 2023-25 budget assumes a conservative forecast of $230,000 which is based on historical averages for this revenue source. 2 Most grant revenue budgets are adjusted throughout the year as grants are awarded and are generally offset by an expenditure budget adjustments.

Financial Plan Page 98

Operating Budgets
Fee Revenue
Table R-3: Community Development
Service 2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget
1 Building Permits 2,954,876 2,921,700 2,561,860 2,689,953 2 Encroachment Permits 295,643 323,340 324,437 340,659
3 Code Enforcement Fines 61,695 60,000 79,617 79,617
4 Planning & Zoning Fee 470,462 416,195 611,597 642,177 5 Development Review Fees 395,360 341,228 387,008 406,358 6 Plan Check Fees3 1,280,615 299,000 1,180,266 1,239,279 7 Infrastructure Plan Ck & Inspection 522,041 1,432,352 970,693 1,019,227 8 Engineering Dev Review Fees 136,274 123,803 160,058 168,061 9 Total CDD Fee Revenue ($) 6,116,966 5,917,618 6,275,536 6,585,331 Table R-4: Police
Service 2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget
1 Police Department Permits 5,027 5,100 4,011 4,011
2 Tobacco Permits 28,421 29,000 30,450 30,450
3 Alarm Permits - Contract (PD) 80,204 90,000 90,000 90,000 4 Police Issued Parking Fines 80,969 70,000 70,000 70,000 5 Admin Citations - Safety 95,204 152,833 125,833 125,833 6 Accident Reports 4,333 3,400 3,400 3,400
7 Collision Investigation 1,139 3,000 3,000 3,000
8 Witness Fees 4,400 1,606 1,606 1,606
9 Tow Release Fees 15,824 12,000 12,000 12,000
10 Second Response Fees 1,437 1,200 1,200 1,200
11 DUI Cost Recovery 25,622 20,000 20,417 20,417
12 Other Police Revenue 212,914 230,796 250,000 250,000 13 Total Police Fee Revenue ($) 555,492 618,935 611,917 611,917 3 Fiscal Policy Section 2.H.4 allows the Finance Director to make appropriations (up to 65% of revenue) and the associated budget adjustments from the Plan Check revenue account into operating budget to cover the cost of services provided. Historically, this was done periodically throughout the year, therefore, the 2022-23 adopted budget only reflects 35% of expected revenue budgeted. Beginning in FY 2023-24, the entire revenue and expenditure budgets will be appropriated at the beginning of the fiscal year, explaining variances on line 6. This is an administrative change and has no net fiscal impact to the General Fund.

Financial Plan Page 99

Operating Budgets
Fee Revenue
Table R-5: Parks & Recreation
Service 2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget
1 Library Rental 4,780 16,290 6,500 6,816
2 Indoor Rental & Use Fees 54,285 65,100 65,100 65,100
3 Outdoor Rental & Use Fees 66,494 129,960 135,003 135,253 4 Special Events Insurance 7,877 10,000 12,000 12,000
5 Sales Taxable 11,852 10,000 10,000 10,000
6 Adult Athletic Fees 103,148 154,362 161,598 168,833
7 Youth Athletic Fees 63,619 55,000 57,750 60,638
8 Instruction Fees 84,501 97,830 102,722 107,858
9 Special Event Fees - App/Permit 30,653 33,293 30,000 30,000 10 Youth Services Childcare 630,369 639,806 663,616 687,416 11 Youth Services Camps 167,010 154,275 155,980 163,202 12 Junior Ranger Camps 5,808 4,982 5,230 5,477
13 Aquatics Daily Use Fees 89,743 115,175 121,000 121,000 14 Swim Instruction Fees 86,617 75,108 82,700 82,700
15 Multi Day Swim Passes 59,898 44,383 55,000 55,000
16 Therapy Pool Fees 3,642 16,304 16,000 16,000
17 Driving Range Fees 8,860 12,900 13,000 13,000
18 Golf Greens Fees 178,024 235,180 220,000 220,000
19 Golf Rental Fees 6,070 11,232 6,000 6,000
20 Other Parks & Rec Revenue 40,963 58,482 74,000 74,000 21 Special Events - City Sponsored 149 13,583 3,400 3,400 22 Golf Cart Rentals 14,050 29,675 25,000 25,000
23 Total Parks & Rec Revenue ($) 1,718,411 1,982,920 2,021,599 2,068,693 Financial Plan Page 100

Operating Budgets
Transfers
Interfund Transfers
The City’s General Fund receives reimbursements and operating transfers for various services and activities that are provided by General Fund operating programs. In turn, the General Fund provides funding to various functions for specific uses. The amounts shown below represent the anticipated funding that will be transferred between the funds.

Table T-1: Operating Transfers
Fund 2023-24 2024-25
Transfer out Transfer In Transfer out Transfer In
1 General Fund $8,023,982 $12,884,446 $7,935,223 $13,177,471 2 Local Revenue Measure $8,202,756 $8,497,440
3 Public Art Fund $90,550 $89,950
4 Gas Tax Fund $1,389,292 $1,419,353
5 Housing Fund $207,000 $207,000
6 TIF Fund $280,000 $280,000
7 TBID Fund $42,816 $43,672
8 Parking Fund $368,233 $372,223
9 Sewer Fund $1,192,689 $1,228,470
10 Water Fund $1,075,110 $1,107,363
11 IT Replacement Fund $256,000 $152,000
12 Public Safety Equipment Fund $391,322 $387,334
13 Debt Service Fund $1,852,660 $1,767,889
14 Insurance Fund $6,000,000 $6,000,000
15 Total Operating Transfer $21,128,428 $21,128,428 $21,332,694 $21,332,694 Financial Plan Page 101

Operating Budgets
Transfers
Table T-2: Replacement and Capital Transfers
The City currently invest funding into the maintenance and replacements of its Fleet assets, its Information Technology Infrastructure, and its Major Facilities through designated funds. This allows for funding to be available when scheduled replacements and maintenance work is needed. The individual expenditure is accounted for under the City’s Capital Improvement Plan which includes a replacement schedule for the City’s fleet proposed over the Financial Plan period.

Fund 2023-24 2024-25
Transfer out Transfer In Transfer out Transfer In
1 General Fund $6,500,000 $3,610,000
2 LRM $22,050,000 $22,400,000
3 TDA Bikeways $45,000 $90,000
4 Debt Service Fund $2,200,000
3 Capital Outlay $22,573,972 $23,245,166
4 Fleet $805,000 $685,000
5 IT Replacement $869,028 $1,446,656
6 Major Facilities Maintenance $822,000 $423,178
7 Infrastructure Investment $5,400,000 -
8 Public Art Fund $325,000 $300,000
9 Total $30,795,000 $30,795,000 $26,100,000 $26,100,000 Table T-3: Reimbursement Transfers
These transfers reimburse the General Fund for direct cost incurred for service to the City’s Enterprise and Agency Funds. The cost comes largely from internal services departments such as City Administration (including IT), Human Resources, City Attorney’s office, and Finance. It is annually assessed through the City’s Cost Allocation Plan (CAP).

Fund 2023-24 2024-25
Transfer out Transfer In Transfer out Transfer In
1 General Fund $5,419,410 $5,581,992
2 Water Fund $1,751,033 $1,803,564
3 Sewer Fund $1,911,466 $1,968,810
4 Parking Fund $1,019,048 $1,049,619
5 Transit Fund $463,491 $477,396
6 Whale Rock Fund $274,372 $282,603
7 Total $5,419,410 $5,419,410 $5,581,992 $5,581,992
Financial Plan Page 102

Operating Budget
General Fund

OPERATING BUDGET-GENERAL FUND

EXPENDITURE OVERVIEW
The City has nine operating departments with 74 service programs. Eight of the departments are either fully or partially budget in the City’s General Fund. The Utilities Department as well as the Parking and Transit programs which are administered by the Public Works Department are accounted for as businessactivities and the related information is presented in the Business Activities section of the Financial Plan document.

This section provides an overview of all the General Fund departments and programs. It includes departmental mission statements, introduces the departments and their contributions towards strategic goals and performance measures, presents operating programs and cost, and details employee and position counts.

How to Read the Budget Tables
Note 1: FY 2021-22 includes a $12.4 million additional discretionary payment to CalPERS to help reduce the City’s unfunded pension liability (R-11307). The expenditure was distributed through the departments proportionally to the department’s unfunded liability obligation. This explains the higher-than-expected variance in that year, and specifically the “Staffing” category within the operating departments tables.

Financial Plan Page 103

Operating Budget
General Fund
2023-25 Operating Department Budgets
Overall, the General Fund operating budget increased by approximately 6%. Variances at the program level above 15% are explained in the department sections of the Financial Plan. Common reasons why program budgets change are:
• Council approved salary and/or benefit changes1
• Increase in cost of doing business at existing levels (generally due to inflation or contractual obligations)
• Previously approved or proposed operating budget changes (SOBCs) • Moving budget between programs (net neutral fiscal impact) • Revenue offsetting adjustments (net neutral fiscal impact) DEPARTMENT 2021-22
Actual
2022-23
Budget
2023-24
Budget
2024-25
Budget
1 Internal Services:
2 Administration and IT $9,642,495 $10,453,389 $10,849,831 $11,003,659 3 City Attorney $1,374,705 $1,305,660 $1,425,044 $1,497,103 4 Finance & Non-departmental $3,051,001 $5,229,942 $3,880,664 $5,216,654 5 Human Resources $1,934,741 $1,684,948 $2,141,185 $2,246,535 6 Community Safety/Neighborhood Services:
7 Fire $17,074,525 $14,515,112 $15,273,559 $15,554,762
8 Police $22,581,983 $20,866,264 $22,086,053 $22,607,072 9 Community Services Group (CSG):
10 CSG Administration $660,112 $573,066 $740,534 $778,730 11 Community Development $7,810,879 $6,783,059 $8,212,711 $8,510,146 12 Parks and Recreation $5,122,628 $5,251,052 $5,706,331 $5,899,998 13 Public Works $15,580,965 $16,144,599 $17,718,046 $18,328,375 14 Solid Waste $185,882 $317,456 $341,459 $349,657
15 TOTAL GENERAL FUND $85,019,917 $83,124,548 $88,375,417 $91,992,693 1 At the time of FY 2022-23 budget development, negotiations were underway for several of the City’s labor groups. A staffing contingency for Council approved parameters was budgeted in the “nondepartmental” cost center. Since the agreed upon wage adjustments are now in effect, the costs are included in each department’s base budget for the 2023-25 Financial Plan; therefore, many departments have a significant variance in staffing when compared to budget year 2022-23.

Table 25:

Financial Plan Page 104

Operating Budget
General Fund
25%
20%
17%
12%
9%
7%
4%
2% 2% 1%
1%
Chart 26: 2023-24 Department Operating Budget

GENERAL FUND
Police
Public Works
Fire
Administration/IT
Community Development
Parks and Recreation
Finance
Human Resources
City Attorney
CSG Administration
25%
20%
17%
12%
9%
6%
6%
2%
2% 1% 0%
Chart 27: 2024-25 Department Operating Budget

GENERAL FUND
Police
Public Works
Fire
Administration/IT
Community Development
Parks and Recreation
Finance
Human Resources
City Attorney
CSG Administration
Solid Waste
Financial Plan Page 105

Operating Program
Enhancements
Enhancements – General Fund
Current Services and Programs
As an incorporated city, San Luis Obispo provides the community with services that are specific to government and are paid for by taxes and fees. Over the years, those “basic” services have been adjusted to the needs and desires of the community and encompass now a large spectrum of departments, programs, and objectives.

These established services are considered “ongoing” and therefore form the base or core services for every budgetary analysis and the point of departure for development of the two-year Financial Plan.

However, those services could change based on the community engagement, changes in business needs, new technologies and goal-setting process as the evolving needs of the community change and other, not yet established services might become more urgent or desired. It is therefore important to consider the current programs as a switch often requires a trade-off due to lack of available funding.

As a cost control measure, the City requires that increases or decreases to budget line items for new or enhanced services or significant increases in existing services to be approved by the City Manager before being presented to Council for consideration and appropriation. A request can be brought forth for a variety of reasons, but is generally considered under the following circumstances:

A. Essential for the protection of health and safety.

B. Needed for the advancement of Major City Goals.

C. Needed to provide ongoing services to the community.

Significant Operating Budget Requests (SOBCs) are divided into two categories: 1) one- time during the Financial Plan period for specific deliverables without ongoing budget impacts; 2) ongoing to adjust the operating program budget for long-term service delivery.

Given the tight fiscal forecast and unanticipated storm response and recovery costs, departments were asked to be very critical of new operating budget requests, specifically ongoing budget requests. Over $4 million of ongoing budget requests were initially submitted. The Financial Plan Steering Committee narrowed the requests down to only mission critical core services and/or health and safety related items that could be funded within available resources.

SOBC details can be found within the individual departmental sections.

Financial Plan Page 106

Operating Program
Enhancements
Combined Requests by Funding Source
Table 28: General Fund SOBCs FY 23-24 FY 24-25 Total
1 One-time $1,494,767 $1,367,867 $2,847,633
2 General Fund $754,217 $731,917 $1,471,134
3 Funding Offset - Economic Development $396,000 $396,000 $792,000 4 Funding Offset - Affordable Housing Fund $150,000 $150,000 $300,000 5 Funding Offset - IT Fund $104,000 - $104,000
6 Funding Offset - Public Art Fund $90,550 $89,950 $180,500 7 Ongoing $478,907 $489,444 $968,351
8 General Fund $478,907 $489,444 $968,351
9 TOTAL $1,973,674 $1,857,311 $3,815,985
Funding Source Descriptions
One-time General Fund SOBCs
These requests will be funded on a one-time basis using the General Fund unassigned fund balance. Based on audited financial statements from FY 2021-22, there was about $1.35 million in unassigned fund balance and additional revenue over expenditures is expected at the end of FY 2022-23. At the 2022-23 Mid-year Review, staff had proposed to use part of this balance ($1.3 million) to make an additional discretionary payment to CalPERS; however, given the recent storms and fiscal uncertainties, Council recommended to not make that payment. These SOBCs will be funded using that balance and additional projected unassigned fund balance at the end of FY 2022-23. Council will reevaluate the City’s fiscal condition at the FY 2023-24 mid-year review and propose making an additional CalPERs payment if possible.

Budget Recommendations Using Economic Development Balance Per Resolution 11203 and the Council Agenda Item #19 from December 14, 2020, $3.4 million of undesignated FY 2018‐19 General Fund Balance was allocated towards economic development efforts and homeless services. Economic Development staff continues to seek opportunities to optimize the use of this assigned fund balance which has a balance of about $1.4 million. The remaining balance will fund 2023-25 budget requests directly related to Economic Development, thus freeing up unassigned general fund balance.

Budget Recommendations Funded Through Other Sources (Affordable Housing, IT Fund, Public Art) Given the limited availability of General Fund dollars, staff recommend using these funding sources for budget requests that have a direct nexus with the purpose of the proposed fund. The budget will be transferred into the General Fund operating budget.

Ongoing General Fund SOBCs
These budget requests are recommended to be funded on an ongoing basis using the projected revenues exceeding expenditures based on the updated General Fund fiscal forecast. They will become part of the base budget.

Financial Plan Page 107

Operating Program
Enhancements
Total Enhancements by Major City Goal Investment
Climate Action,
$50,000
Core Services,
$992,674
DEI, $20,000
Economic,
$606,000
Housing &
Homelessness,
$305,000
Chart 29: FY 2023-24 GENERAL FUND SOBC INVESTMENT

BY TYPE
Financial Plan Page 108

Operating Program
Enhancements
Table 31: SOBCs
Department SOBC Funding Source FY 23-24 FY 24-25
Core Services
1 CDD IT Project Management Services IT Replacement Fund $104,000 $0 2 Fire Public Safety Equipment
Replacement General Fund One-time $102,810 $107,011
3 HR Contract .5 Human Resources
Specialist - Onboarding General Fund One-time $46,895 $48,583 4 HR Preventative Mental Health
Services Program for Public Safety General Fund Ongoing $35,000 $37,000 5 HR SLO Onboarding Assistance
Resources Program
General Fund One-time $6,000 $6,000
6 P&R Contract Recreation Coordinator
(Public Art) Public Art Fund Balance $90,550 $89,950
7 P&R Volunteer Program Budget General Fund Ongoing $26,525 $24,775 8 Police Community Policing Software General Fund Ongoing $15,000 $15,000 9 Police Increased Cost for Animal Services
Operations
General Fund Ongoing $50,000 $50,000
10 Police Investigative Software General Fund Ongoing $11,000 $11,000 11 Police Public Safety Equipment
Replacement General Fund One-time $68,512 $60,323
12 Police Reclassification - Communications
Manager
General Fund Ongoing $105,567 $105,630
13 PW Annual MS4 permit fee - SWRCB General Fund Ongoing $18,000 $18,500 14 PW City Hall Temporary Restroom General Fund Ongoing $12,000 $12,600 15 PW Contract Mowing Services at Parks General Fund One-time $100,000 $100,000 16 PW New Regular - Urban Forester (1
FTE) General Fund Ongoing $96,690 $100,065
17 PW Utilities and Janitorial Services for
New City Buildings General Fund Ongoing $89,125 $89,875 18 Solid Waste Rate Manual Updates through
IWMA
General Fund One-time $15,000 $0
19 Climate Action, Open Space, and Sustainable Transportation 20 Admin/IT 10 Tall Tree Planting
Implementation (MCG 4.2g) General Fund One-time $50,000 $50,000 21 Diversity, Equity, Inclusion
22 P&R Youth Programs Scholarship Funds
(MCG 2.8d) General Fund Ongoing $20,000 $25,000
23 Economic Resiliency, Cultural Vitality & Fiscal Sustainability 24 Admin/IT Buy Local and Eat Local Bonus
(MCG 1.2a)
Economic Development
Funding $125,000 $125,000
25 Admin/IT Childcare Grants (MCG 2.8d) Economic Development Funding $25,000 $25,000
Financial Plan Page 109

Operating Program
Enhancements
Department SOBC Funding Source FY 23-24 FY 24-25
26 Admin/IT Community Activations (MCG

1.4e)
Economic Development
Funding $75,000 $75,000
27 Admin/IT EDD/Beacon Data (MCG 1.2e) Economic Development Funding $11,000 $11,000
28 Admin/IT EDSP Implementation (MCG 1.1a) Economic Development Funding $75,000 $75,000
29 Admin/IT La Loma Adobe Rehabilitation
(Phase I) (MCG 1.4f) General Fund One-time $100,000 $0
30 Admin/IT Shop Local Business Promotion
(MCG 1.2a)
Economic Development
Funding $85,000 $85,000
31 CDD Historic Resources Inventory
(MCG 1.4g) General Fund One-time $100,000 $150,000
32 PW Exploration of a Potential
Stormwater Utility General Fund One-time $10,000 $10,000 33 Housing and Homelessness
34 CDD Below Market Rate Administrator Affordable Housing Fund $150,000 $150,000 35 CDD Hotel Voucher Program - CAPSLO
(MCG 3.2a) General Fund One-time $25,000 $0
36 CDD Margarita Area Specific Plan
Update General Fund One-time $100,000 $200,000
37 CDD Safe Parking (Location TBD) (MCG

3.2d) General Fund One-time $30,000 $0
Total $1,973,674 $1,857,311
Table 31 (continued): SOBCs
Financial Plan Page 110

Operating Budget – General Fund
Capital Projects’ Impact on Operating Cost
The Capital Improvement Plan (CIP) and its annual
implementation is one of the primary functions of local government. Through its adopted CIP, the City meets
community needs by providing and maintaining the
infrastructure required for the community’s economic
vitality, neighborhood wellness, housing,
transportation, sustainability, active and passive
recreation, public safety, cleanliness, and other basic amenities.

In the context of Capital Infrastructure, it is important to analyze the impact on operating budgets required to maintain the assets for longevity and appropriately adjust the annual budget appropriation. With the passage of local sales tax measure G20, the City’s annual revenue budget increased by over $15 million in FY 2021-22. Most of this funding is programmed to infrastructure projects to bring the total annual capital investment to over $29 million. To complete these projects, the City added engineering, project delivery, and management staff resources required to design, permit, construct, and maintain the assets over both the two-year and five-year time horizon.

In order to assess the impact of the City’s capital project plan and the resulting asset maintenance, Capital improvement projects must be presented with a full fiscal impact, including any specific ongoing dollar impacts before given approval. Those amounts are then incorporated into the operating budgets for future appropriations.

Table 32: Council Agenda Report - Fiscal Impact Table (Example) $29.7 mil
2023-24
General Fund
Operating
Budget
$85.7 mil
Financial Plan Page 111
2023-24
General Fund
Capital
Budget

Operating Budgets
Employee Summary – All Major Funds Combined
Employee Summary
Department specific organization charts can be found in the Department Operating Budget section. There are two tables included in the section below that provide:

1. Ongoing Approved FTEs – These fully-benefited positions are approved by Council on an ongoing basis and generally are essential to delivering the City’s core services.

2. Contract and Supplemental employees – It is the policy of the City of San Luis Obispo to hire supplemental employees to meet the temporary needs of the City that result from emergencies, special projects of a short-term nature, extra-help, seasonal work, unexpected surges in workload, occasional hours for an ongoing need, and to provide substitutes for or support to regular employees to maintain optimal service levels.

ADMINISTRATION/IT
8% City Council
1% City ATTORNEY
1%

COMMUNITY

DEVELOPMENT
8%

COMMUNITY

SERVICES GROUP

ADMINISTRATION
1%

FINANCE
3%
FIRE
13%

HUMAN RESOURCES
2%

PARKS &

RECREATION
6%
POLICE
20%

PUBLIC WORKS
20%

UTILITIES
17%
Chart 33: CITY WIDE POSITION OVERVIEW BY DEPARTMENT
(NOT INCLUDING SUPPLEMENTAL/CONTRACT POSITIONS)
Financial Plan Page 112

Operating Budgets
Employee Summary – All Major Funds Combined
The tables below present the FTEs in the way that their costs are allocated. Some positions work across different programs or departments. For example, one FTE may be costed 50% in Utilities and 50% in Public Works. Sometimes positions are moved between programs; however, net changes in the number of positions overall requires Council approval.

Table 34: Ongoing Approved FTEs 23-25 Financial Plan
DEPARTMENT & PROGRAM 2021-22 2022-23 2023-24 2024-25 Additions 1 ADMINISTRATION AND IT 33.22 34.72 35.72 35.72 2
2 City Administration1 5 6 7 7 1
3 Economic Development 1 1 1 1 0
4 Natural Resource Protection2 3 3 4 4 1
5 Tourism and Bid Promotion 1.75 1.75 1.75 1.75 0
6 Community Promotion 0.25 0.25 0.25 0.25 0
7 Diversity, Equity Inclusion 1 1 1 1 0
8 City Clerk 4 4.5 4.5 4.5 0
9 Network Services 8.55 8.55 8.55 8.55 0
10 Information Services 8.67 8.67 8.67 8.67 0
11 City Council 5 5 5 5 0
12 City Attorney 3 6 6 6 0
13 CSG ADMINISTRATION3 3.5 2.5 3.5 3.5 1
14 COMMUNITY DEVELOPMENT 40.5 40.5 40 40 -0.5
15 Community Dev Admin 5 5 5 5 0
16 Planning 10 10 9 9 -1
17 Engineering 5 5 6 6 1
18 Building and Safety4 15.5 15.5 15 15 -0.5
19 Housing Assistance2 4 4 5 5 1
20 FINANCE3 15 15 14 14 -1
21 Accounting 6.3 6 7 7 1
22 Budgets 1.2 1 1 1 0
23 Financial Administration 3 3 1 1 -2
24 Purchasing 2 2 2 2 0
25 Revenue Management 2.5 3 3 3 0
26 FIRE4 57.5 60 60.5 60.5 0.5
27 Emergency Response 46 46 46 46 0
28 Fire Administration 4 4 4 4 0
29 Fire Apparatus Services 2 2 2 2 0
1 Conversion of Ongoing Contract position to Ongoing Regular FTE. 2 Includes position(s) that were approved as additional FTEs on March 3, 2023 (R-11399- Exhibit A). 3 Infrastructure Financing Analyst moved from Finance Administration to CSG. One Finance Administration FTE was moved to the Accounting division.
4 The Fire Marshall/Chief Building Official was split 50/50 between CDD and Fire. The position was moved completely to Fire and the CDD Deputy Building Official was reclassified to a Deputy Director/Deputy Building Official.

Financial Plan Page 113

Operating Budgets
Employee Summary – All Major Funds Combined
Table 34: Ongoing Approved FTEs 23-25 Financial Plan
DEPARTMENT & PROGRAM 2021-22 2022-23 2023-24 2024-25 Additions 30 Hazard Prevention 5.5 6 6.5 6.5 0.5
31 Emergency Management 0 1 1 1 0
32 Mobile Crisis Unit 0 1 1 1 0
33 HUMAN RESOURCES 10 10 10 10 0
34 Human Resources 10 10 10 10 0
35 PARKS & RECREATION 28 29 30 30 1
36 Recreation Admin 4 4 4 4 0
37 Recreation Facilities 1 1 1 1 0
38 Youth Services 8 8 8 8 0
39 Community Services52 above2 above 2 3 4 4 1
40 Ranger Service 8 8 8 8 0
41 Aquatics 1 1 1 1 0
42 Golf Course 4 4 4 4 0
43 POLICE6 91 91 95 95 4
44 Police Admin 6.5 6.5 7 7 0.5
45 Patrol 43 45 51 51 6
46 Investigations 16 14 12 12 -2
47 Police Support Services 20.5 20.5 21 21 0.5
48 Neighborhood Services 1 1 1 1 0
49 Traffic Safety 4 4 3 3 -1
50 PUBLIC WORKS 84.72 91.72 93.72 93.72 2
51 Facilities Maintenance 5 5 5 5 0
52 CIP Project Engineering 15 18 18 18 0
53 Stormwater & Flood Control (Streets
Maintenance)
2 2 2 2 0
54 Parks Maintenance 12 13 13 13 0
55 Parking Services 14.22 15.22 15.22 15.22 0
56 Public Works Administration5 7 8 9 9 1
57 Streets & Sidewalk Maintenance 11 12 12 12 0
58 Swim Center Maintenance 1 1 1 1 0
59 Traffic Signal Lights 2 2 2 2 0
60 Transit Services 3 3 3 3 0
61 Transportation Planning and
Engineering 6 6 6 6 0
62 Urban Forest Services7 2 2 3 3 1
5 Includes position(s) that were approved as additional FTEs on March 3, 2023 (R-11399- Exhibit A). 6 The decrease in positions in Investigations and Traffic Safety reflect the shift of officers to Patrol due to staffing shortages. Investigations and Traffic cannot be fully staffed until the Department is able to fill vacant Patrol positions.
7 Includes 1 FTE Urban Forester recommended with the 2023-25 Financial Plan.

Financial Plan Page 114

Operating Budgets
Employee Summary – All Major Funds Combined
Table 34: Ongoing Approved FTEs 23-25 Financial Plan
DEPARTMENT & PROGRAM 2021-22 2022-23 2023-24 2024-25 Additions 63 Fleet Services 4.5 4.5 4.5 4.5 0
64 UTILITIES 76.06 80.06 80.06 80.06 0
65 Water Admin and Engineering 5.34 5.34 5.34 5.34 0
66 Water Source of Supply 1.2 1.2 1.2 1.2 0
67 Water Treatment 11.45 12.45 12.45 12.45 0
68 Water Distribution 10.9 10.9 10.9 10.9 0
69 Water Resources 3 4 4 4 0
70 Wastewater Admin and Engineering 6.44 6.54 6.54 6.54 0 71 Wastewater Collection 7.5 8.5 8.5 8.5 0
72 Environmental Programs 1.6 1.6 1.6 1.6 0
73 Water Resource Recovery 12.3 12.3 12.3 12.3 0
74 Utilities Revenue 2 2 2 2 0
75 Water Quality Lab 3.7 3.7 3.7 3.7 0
76 Solid Waste Recycling 1.1 2 2 2 0
77 Reservoir Operations 4.1 4.1 4.1 4.1 0
78 Stormwater & Flood Control 5.43 5.43 5.43 5.43 0
Total Full-Time Employee Count
2021-22 2022-23 2023-24 2024-25 Additions
TOTAL 446.5 464.5 474.5 474.5 10
Financial Plan Page 115

Operating Budgets
Employee Summary – All Major Funds Combined
Total Contract & Supplemental Employee Count
The “FTE” count for supplemental staff is calculated based on budgeted hours (1 FTE = 2080 hours) which are subject to change from year-to-year based on budget availability. With the 2021-23 Financial Plan, there were many supplemental or contract positions added to help with Major City Goal efforts and core services. Some of these positions were approved as ongoing regular FTEs during the two-year period; however, many were not, explaining the negative variance in FY 2023-24.

Table 35: Supplemental & Contract Positions 2021-22 2022-23 2023-24 2024-25 Additions ADMINISTRATION 3.9 3.9 1.4 1.4 -2.5
1 City Administration8 1 1 0 0 -1
2 City Clerk 0.1 0.1 0.1 0.1 0
3 Natural Resources Protection8 1.5 1.5 0 0 -1.5
4 Network Services 0.3 0.3 0.3 0.3 0
5 Diversity, Equity, Inclusion 1 1 1 1 0
6 CITY ATTORNEY’S OFFICE 5 1.6 1.6 1.6 0
7 CITY ATTORNEY’S OFFICE 5 1.6 1.6 1.6 0
8 COMMUNITY DEVELOPMENT 1.3 3.5 2 2 -1.5
9 Community Development Admin 0.5 0 0 0 0
10 Planning - 1 1 1 0
11 Engineering 0.8 0.75 0.6 0.6 -0.15
12 Building and Safety - 1.75 0.4 0.4 -1.35
13 FINANCE 0.5 0.5 0.5 0.5 0
14 Revenue Management 0 0 0 0 0
15 Accounting/ General Finance 0.5 0.5 0.5 0.5 0
16 FIRE 1.75 1.75 1.5 1.5 1
17 Fire Admin9 0.75 0.75 1.5 1.5 1
19 Mobile Crisis Unit 1 0 0 0 0
20 HUMAN RESOURCES 0.5 0.5 1 1 1
21 Human Resources Admin10 0.5 0.5 1 1 1
22 PARKS & RECREATION 45.3 34.4 35.4 35.4 1
23 Recreation Admin 1.7 1.0 1.0 1.0 0
24 Recreation Facilities 2.9 2.9 2.9 2.9 0
25 Youth Services 18.7 12.7 12.7 12.7 0
8 Conversion of Contract positions to Ongoing Regular FTEs (Natural Resources Protection position approved on March 3, 2023).
9 Expansion of Fire Intern Program as approved on March 3, 2023 (R-11399- Exhibit A). 10 Addition of part-time Human Resources Specialist recommended with the 2023-25 Financial Plan.

Financial Plan Page 116

Operating Budgets
Employee Summary – All Major Funds Combined
Table 35: Supplemental & Contract Positions 2021-22 2022-23 2023-24 2024-25 Additions 26 Community Services11 4.1 2.1 3.1 3.1 1
27 Ranger Service 4.8 1.9 1.9 1.9 0
28 Aquatics 11 11.0 11.0 11.0 0
29 Golf Course 2.1 2.8 2.8 2.8 0
30 POLICE 1.7 1.7 1.9 1.9 0.2
31 Neighborhood Services 1.7 1.7 1.9 1.9 0.2
32 PUBLIC WORKS 17.7 14.7 12 12 -3
33 Public Works Admin 0.6 0.1 0 0 -0.1
34 Parks Maintenance 1.5 2 1.5 1.5 -0.5
35 Swim Center Maintenance 1 0.5 0.5 0.5 0
36 Streets Maintenance 4 1 1 1 0
37 Fleet 1.5 1.5 0 0 -1.5
38 CIP Project Engineering 0.7 1.14 0.7 0.7 -0.4
39 Transportation Plan and Engineering 1 0.9 0.7 0.7 -0.2 40 Parking 6.1 7.6 7.6 7.6 0
41 Stormwater 1.3 0 0 0 0
42 UTILITIES12 1.6 1 3 3 2
43 Water Resources - 0 0 0
44 Water Resource Recovery Facility 1.5 1 0 0 -1
45 Water Quality Lab 0.1 0 0 0 0
46 Water Admin and Engineering 0 0 1.5 1.5 1.5
47 Wastewater Admin and Engineering 0 0 1.5 1.5 1.5
Total Supplemental Employee Count
2021-22 2022-23 2023-24 2024-25 Additions
TOTAL 79.3 62.6 60.3 60.3 -2.3
11 Addition of Contract Public Art Coordinator recommended with the 2023-25 Financial Plan. 12 Addition of contract and supplementary staff as recommended with the 2023-25 Financial Plan. See Utilities Department section for detail.

Financial Plan Page 117

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Financial Plan Page 118

Administration and Information Technology

ADMINISTRATION AND INFORMATION

TECHNOLOGY
Mission Statement
Providing leadership for the City organization in our quest to deliver exceptional service by facilitating citizen participation and government transparency, implementing City Council goals and programs, and fostering trust, respect and dignity for the City and the community members we serve.

About the Department
The City Administration and Informational Technology Department is responsible for providing information and recommendations to the City Council, implementing Council policies and programs as well as managing the day-to-day operations of the City. It is the lead department charged with overseeing implementation the Council’s Major City Goals.

The department is also responsible for coordinating the City's economic efforts including: the City's Tourism program; the Office of Diversity, Equity and Inclusion; the Office of Sustainability that houses the City’s Climate Action Program, Natural Resources Program, Creeks and Watersheds Program and Community Partnerships; the Information Technology Division which provides network and information services technology infrastructure, support, training, policy and strategic planning; and the City Clerk’s Office. City Administration serves as the liaison to the Chamber of Commerce, Downtown SLO and Central Coast Community Energy.

Financial Plan Page 119

Administration and Information Technology
The Department at a glance
Program 2021-22
Actuals
2022-23
Budget
2023-24
Budget
2024-25
Budget
1 Administration $1,417,084 $1,374,415 $1,518,237 $1,599,600 2 City Clerk $601,382 $704,704 $757,787 $777,137
3 City Council $245,853 $221,756 $244,185 $246,440
4 Community Promotion $415,604 $405,609 $411,735 $413,234 5 Cultural Activities $332,351 $357,963 $365,161 $365,161 6 Economic Dev $881,015 $906,219 $928,984 $937,514
7 Information Services $1,342,915 $1,277,224 $1,499,305 $1,553,946 8 Natural Resource Protection $1,017,359 $814,543 $1,024,108 $949,032 9 Network Services $3,239,708 $3,502,642 $3,504,523 $3,555,056 10 Office of Diversity, Equity,
Inclusion (DEI) $149,224 $888,313 $595,806 $606,539
11 Administration/IT Total $9,642,495 $10,453,389 $10,849,831 $11,003,659 Staffing
57% Contract
Services
25%
18%
Chart A-2: EXPENDITURES BY FUNCTION
Other Operating Costs
Table A-1:

Financial Plan Page 120

Administration and Information Technology
Chart A-3: Department Organizational Chart1
1 Does not include supplemental positions.

Financial Plan Page 121

Administration and Information Technology
Chart A-4: Operating Budget Changes
SOBC Description Type 2023-24 2024-25
1 10 Tall Tree
Planting
Implementation
(MCG 4.2g)
This project will support the implementation of the
10 Tall goal of planting 10,000 new trees by 2035, as
identified in the Council's direction for the work
program attendant to the Major City Goal for
Climate Action, Open Space, and Sustainable
Transportation. Use of these funds will be focused
on creeks and open space areas; this project is one
of the primary implementation pathways of the
Natural Solutions pillar of the Climate Action Plan,
which directs staff to "Expand climate resilience and
carbon sequestration practices to additional
properties and sites in the City and broader
Greenbelt". Open space climate interventions and
tree planting activities are also called for in the
recently adopted Climate Adaptation and Safety
Element of the City's General Plan.

Onetime $50,000 $50,000
2 Buy Local and Eat
Local Bonus (MCG

1.2a)
The various buy local initiatives have created
increased economic activity by a factor of 10x and
they proved their effectiveness during and post
pandemic and should be continued.

Onetime $125,000 $125,000
3 Childcare Grants
(MCG 2.8d)
Continue the Childcare grants for starting new and
expanding current childcare businesses.

Onetime $25,000 $25,000
4 Community
Activations (MCG

1.4e)
The funding that was available during and just after
the pandemic was key to the City’s recovery. This
funding will be used to continue some of those
efforts as well as seed money for new activations in
downtown and other areas of the City. Some past
examples include the windows in Ross and Beverly's
($12K), Lunar New Year Decorations ($3K). Mission
Plaza Activations ($3K (Chalk art-$20K roller rink).

This funding also covers the cost of the 140+ banner
location switch outs 4x a year with the existing arms
and City owned banner product as well as storage
and cleaning.

Onetime $75,000 $75,000
5 EDD/Beacon Data
(MCG 1.2e)
The EDD and Beacon data is critical to the
employment scorecard to determine the
effectiveness of many of our Economic
Development related efforts and will be a key metric
to measure the effectiveness of the updated EDSP.

Onetime $11,000 $11,000
6 EDSP
Implementation
(MCG 1.1a)
The timing of the update of the Economic
Development Strategic plan is slightly behind the
budget process. This funding is being set aside to
have funding available for the identified initiatives.

Onetime $75,000 $75,000
7 La Loma Adobe
Rehabilitation
(Phase I) (MCG

1.4f)
The City is part of a MOU with the Friends of La
Loma Adobe to bring forward efforts to rehabilitate
the structure and restore the grounds of this Cityowned property. Following significant planning Onetime $100,000 $0
Financial Plan Page 122

Administration and Information Technology
SOBC Description Type 2023-24 2024-25
efforts, this first phase leading towards
rehabilitation of the adobe entails the following
steps: 1. preparation of plans, specifications, and
engineering for stabilization of the structure, 2.
environmental document (CEQA) and building
permit process, and 3. resolution of the lot line
discrepancy with the neighbor (following survey and
deed research that has recently been undertaken).

The Friends of La Loma will undertake the first two
steps and the City will lead the third step. The goal
of this Phase I effort is to attain "shovel ready"
status in 2025 and position the project to attract
major grants and other external funding. This will be
formalized through a grant agreement with a
matching component.
8 Shop Local
Business
Promotion (MCG

1.2a)
Our shop local efforts have continued to pay
significant dividends in maintaining a vibrant local
economy and should be continued on an ongoing
basis. This allocation directly funds the marketing
contract for all Support Local advertising initiatives
including: the ongoing neighborhood campaign, the
seasonal targeted buy local campaigns like back-toschool, Valentines Day and Mother's Day shopping, and the advertising for Buy Local Bonus and Eat
Local Bonus. This investment combined with the gift
card funding for BLB/ELB, resulted in a 5:1 ROI for
the city directly producing sales tax revenue into the
city's general fund.

Onetime $85,000 $85,000
9 Reclassification -
Administrative
Assistant III
The Administrative Assistant III requested to align
resources with the support needed to carryout the
Department workplan and Major City Goals. This
position will serve as the department's Fiscal
Officer, and provide administrative support to the
Deputy City Manager, as well as critical City
programs, including economic development and
tourism, communications, sustainability and natural
resources, and the Clerk's Office. The Administrative
Assistant III position will be funded by reallocating
the Management Fellow funding to support the new
position. The proposed change is cost neutral.

Ongoing $0 $0
10 Reclassification -
Economic
Development
Analyst
Pre-Covid there was an approved plan to
restructure the ED&T program. The impacts from
Covid and the overall progress of the City have
proven that those changes were the right direction
to take moving forward. The ED&T team has worked
with HR to revise the titles and job descriptions.

Compared with the current structure there are no
changes in job class and there are no additional
positions requested. The changes are cost neutral to
the general fund and any potential overages such as
Ongoing $0 $0
Financial Plan Page 123

Administration and Information Technology
SOBC Description Type 2023-24 2024-25
transition cost or over hire costs can be managed
within the existing budget.
11 Reclassification -
Economic
Development and
Tourism Manager
Pre-Covid there was an approved plan to
restructure the ED&T program. The impacts from
Covid and the overall progress of the City have
proven that those changes were the right direction
to take moving forward. The ED&T team has worked
with HR to revise the titles and job descriptions.

Compared with the current structure there are no
changes in job class and there are no additional
positions requested. The changes are cost neutral to
the general fund and any potential overages such as
transition cost or over hire costs can be managed
within the existing budget.

Ongoing $0 $0
12 Reclassification -
GIS Specialist
GIS is an enterprise system that supports missioncritical systems such as Spillman Geovalidation, Cityworks, EnerGov, and online GIS maps. GIS
Specialists perform similar work on Spillman,
Cityworks, and Web GIS as SAS working on EnerGov
and Motion, such as configuring applications,
writing scripts, making reports, and improving
functions. In addition, GIS Specialists do more by
designing and creating mobile apps. Once viewed
as a map-making tool, GIS is a platform comprised
of a network of servers, online resources,
databases, and applications that do much more
than make a map. When SAS-EnerGov is
unavailable, GIS Specialists are next in line to
support the EnerGov System. We are proposing
reclassification to meet the demands of modern
GIS.

Ongoing $0 $0
13 Reclassification -
Tourism and
Community
Promotions
Manager
Pre-Covid there was an approved plan to
restructure the ED&T program. The impacts from
Covid and the overall progress of the City have
proven that those changes were the right direction
to take moving forward. The ED&T team has worked
with HR to revise the titles and job descriptions.

Compared with the current structure there are no
changes in job class and there are no additional
positions requested. The changes are cost neutral to
the general fund and any potential overages such as
transition cost or over hire costs can be managed
within the existing budget.

Ongoing $0 $0
TOTAL $546,000 $446,000
Financial Plan Page 124

Administration and Information Technology
2023-25 Department Goals
Department strategic priorities for the 2023-25 Financial Plan are to help advance the City’s overall goals tied to Major City Goals, Department Strategic Plans, and other priorities as they may arise. These goals are in addition to ongoing community program services (listed in program sub-sections).

Strategic
Goal(s)
Continue to lead the City’s communications program and provide timely, accurate and concise communications that provide opportunities for the community to engage with the City.

Continue to manage the City’s Information Technology Program to provide reliable resources for improving organizational productivity, effectiveness and customer service to the entire City organization and the community.

Work with regional partners to focus on the creation of head-of-household jobs, promoting innovation and entrepreneurship, and supporting economic activities, including tourism, to ensure the overall economic health and quality of life.

Implement the primary tasks set forth for the next two years as identified in the Climate Action Plan for Community Recovery. Continued commitment and expanded focus on Open Space protection and stewardship, as well as fire fuel reduction and creek and flood control maintenance.

Further the commitment to making San Luis Obispo a welcoming and inclusive city for all by continuing to incorporate diversity, equity, and inclusion into all programs and policies, and advancing the recommendations of the DEI Task Force.

Financial Plan Page 125

Administration and Information Technology
Performance Measures
Performance measures are designed to determine accountability, improve service quality, allocate resources, and evaluate departmental performance in meeting San Luis Obispo’s goals and objectives.

Objective Measure 2021-22
Actual
2022-23
Projected
Actual
2023-24
Target
2024-25
Target
Provides City-wide
communications to the
community.

Strategic Goal: Citywide
Communications
Open City Hall Participant
Satisfaction Rating 94% 94% 93% 93%
# of Pageviews for City News
Pages
112,287 300,000 350,000 400,000
# of news email subscribers 2,643 3,400 4,500 6,000
Provides reliable IT resources
to the organization and
community.

Strategic Goal: Information
Technology
Maintain City Network Reliability
Uptime Status 99.95% 99.95% 99.9% 99.9%
Data backed-up in Gigabytes 185,448 195,000 195,000 195,000 Number of GIS layers maintained 915 910 920 920
Economic Stability
Strategic Goal: Economic
Recovery and Stability
Contacts with businesses
regarding starting, expanding,
and/or staying in the City
85 76
2 75 75
One-time funds used for direct aid
to local businesses and non-profits $400,000 $350,000 $175,000 $175,000 Supports our commitment to
sustainability and provides
open space resources to the
community.

Strategic Goal: Climate Action,
Open Space, and Sustainable
Transportation
# of Green Team3 Meetings 10 8 10 10
# of Open Space Conservation
Plans that will guide the long-term
protection and stewardship of
natural resource values while
guiding appropriate public use
0 1 1 1
Strengthens the City’s
commitment to advancing
Diversity, Equity and Inclusion
Strategic Goal: DEI
# of City-wide DEI Trainings
Offered 21 9 10 10
# of DEI Newsletters for Staff 0 1 6 6
Funds for High-Impact DEI Grants
Awarded 0 $300,000 $150,000 $150,000
2 As of April 3, 2023
3 Chartered by City Council, the Green Team is an annual commitment from a collaborative body of staff representing various City departments to participate in the cross-departmental planning and implementation of emissions reductions measures. The Green Team’s mission is to implement the City’s Climate Action Plan, Lead By Example Plan, and Climate Adaptation and Safety Element of the General Plan and achieve the City’s carbon neutrality and climate resilience goals. In FY23-24 the Green Team will focus on supporting staff managing Cal Poly Climate Corps Fellows and on all-staff capacity building through presentations, events, and trainings.

Table A-5:

Financial Plan Page 126

Operating Budget
General Fund City Administration
City Administration
Program Description
The City Administration and Information Technology department is responsible for providing information and recommendations to the City Council, implementing Council policies and programs as well as managing the day-to-day operations of the City. It is the lead department charged with overseeing the implementation of the Council’s Major City Goals.

Core Services & Objectives
 Lead the Economic Resiliency, Cultural Vitality & Fiscal Sustainability Major City Goal.  Lead the Diversity, Equity, and Inclusion (DEI) Major City Goal.  Lead the Climate Action, Open Space and Sustainable Transportation Major City Goal.  Lead the citywide communication program.

Program Budget
Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,189,887 $1,193,995 $1,334,217 12% $1,415,580 6% Contract Services $149,176 $125,900 $104,340 -17% $104,340 0% Other Operating Costs $78,022 $54,520 $79,680 46% $79,680 0% Administration Total $1,417,084 $1,374,415 $1,518,237 10% $1,599,600 5% Major City Goal Contributions
The City Administration program will be responsible for supporting the Department’s programs in leading the Major City Goals of Economic Resiliency, Cultural Vitality, and Fiscal Sustainability; Diversity, Equity, and Inclusion; and Climate Action, Open Space, and Sustainability Transportation.

Opportunities and Challenges
During the 2021-23 Financial Plan, City Administration took the lead on three Major City Goals. This included launching the new Diversity Equity and Inclusion goal. The City has made significant progress in implementing the goal, but hiring for the position took longer than expected and then a staff vacancy delayed some progress on implementing the workplan. Staff is now moving forward on all tasks after recently hiring a new DEI manager. The Assistant to the City Manager position took over City legislative efforts and has had an impact on matters of local and statewide importance.

Table A-6: Actual
Financial Plan Page 127

Operating Budget
General Fund City Council
City Council
Program Description
The Council governs the City of San Luis Obispo by enacting and enforcing all laws and regulations concerning municipal affairs, subject only to limitations and restrictions of the City Charter and the State Constitution. Seventeen standing advisory bodies help the Council with this work.

Core Services & Objectives
 Implementation of the selected Major City Goals:
 Economic Resiliency, Cultural Vitality, and Fiscal Sustainability Major City Goal.  Diversity, Equity and Inclusion (DEI) Major City Goal.  Climate Action, Open Space and Sustainable Transportation Major City Goal.  Housing and Homelessness Major City Goal.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $211,690 $192,356 $209,785 9% $212,040 1%
Other Operating Costs $34,163 $29,400 $34,400 17% $34,400 0% City Council Total $245,853 $221,756 $244,185 10% $246,440 1% Table A-7:

Financial Plan Page 128

Operating Budget
General Fund Cultural Activities
Cultural Activities
Program Description
The Cultural Activities Program administers partnerships with the Cal Poly Performing Arts Center, CityCounty Public Library, San Luis Obispo Museum of Art, the History Center of San Luis Obispo, San Luis Obispo Repertory Theatre, and other cultural organizations that provide community value.

Core Services & Objectives
 Continue support to the City-County Library.
 Continue financial support of the Performing Art Center (PAC).  Participate on the PAC Board and Facilities Committee.  Continue to provide support to Community Partners and explore new partnerships.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Contract Services $332,351 $354,713 $365,161 3% $365,161 0% Other Operating Costs $0 $3,250 $0 -100% $0
Cultural Activities Total $332,351 $357,963 $365,161 2% $365,161 0% Opportunities and Challenges
The City continues to work with a number of local non-profits through its community partnerships program that enhances the cultural vibrancy of the City. The City is actively moving forward with the Cultural Arts District Parking Structure which will be paired with the SLO Repertory Theatre’s new home and continue to build out the southern part of downtown as the Cultural Arts District. Challenges are similar to many other challenges that the City faces in that there isn’t enough money to do everything.

Table A-8:

Financial Plan Page 129

Operating Budget Economic Development
Economic Development
Program Description
The Economic Development Program emphasizes support for creation of head-of-household jobs, collaborates with Cal Poly, Cuesta College, the business community, and other agencies to promote innovation and entrepreneurship, and supports economic activities, including tourism, to ensure the overall economic health and quality of life.

Core Services & Objectives
 Lead the Economic Resiliency, Cultural Vitality & Fiscal Sustainability Major City Goal.  Support the Climate Action, Open Space and Sustainable Transportation Major City Goal and the Diversity Equity & Inclusion Major City Goals with a focus on economic development.  Lead the process to implement to the updated Economic Development Strategic Plan.  Restructure the program to meet the changing needs of the community and the evolution of economic development in the City.
 Continue to implement traditional and non-traditional economic development programs.  Work with our partners across the region to address common economic development challenges and opportunities including business and talent attraction, reducing barriers to job creation, focusing on sustainability and diversity equity and inclusion.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $219,226 $183,569 $215,334 17% $223,864 4%
Contract Services $649,680 $695,000 $686,000 -1% $686,000 0% Other Operating Costs $12,109 $27,650 $27,650 0% $27,650 0% Economic Dev Total $881,015 $906,219 $928,984 3% $937,514 1% Major City Goal Contributions
The implementation of the Economic Resiliency, Cultural Vitality & Fiscal Sustainability (ERCV&FS) Major City Goal will require a significant work effort. The actions and funding to continuing our support of local marketing efforts and promotions like the Buy Local Bonus and Eat Local Bonus programs will be important to continue to build resiliency in our community. Working with the Office of Sustainability and Natural Resources and the Office of Diversity Equity and Inclusion will also be key to the success of the ERCV&FS Major City goal. The Economic Development and Tourism Program will also be involved in the other Major City Goal work programs to further their objectives.

Table A-9:

Financial Plan Page 130

Operating Budget Economic Development
Opportunities and Challenges
There are many opportunities presented by the work on the Major City Goal and the updated Economic Development Strategic plan, and the restructure of the program. Many of the opportunities are related to further enhancing business communication and promotion. The groundwork being done in cooperation with Community Development Department on Upper Monterey and other areas of the City will create both short and longer-term opportunities for both housing and economic development.

Working with our community partners at the Chamber, REACH, Cal Poly and other stakeholders will also create new opportunities for the City to cooperate regionally on creating jobs and expanding our local business community.

One of the challenges will be determining ongoing funding for economic development programs only budgeted in the current Financial Plan.

Other Key Points
 The City’s Economic Development partnerships with other organizations, including the San Luis Obispo Chamber of Commerce, REACH, Downtown SLO, Cal Poly, and others continue to strengthen and will be invaluable in dealing with the recovery and resiliency as well as other ongoing issues like the closure of the Diablo Canyon Nuclear Power Plant.  Since 2020 the team has expanded the Economic Development Program’s communication to the business community and continuation of those efforts will be part of the efforts moving forward.

Financial Plan Page 131

Operating Budget Office of Sustainability
Office of Sustainability and Natural Resources
Program Description
The Office of Sustainability provides leadership through direct action, catalyzes positive action through collaborative engagement and policy development, and creates measurable benefits for the City of San Luis Obispo and our region through Natural Resources, Climate Action, Creeks and Watersheds, and Community Partnerships.

Core Services & Objectives:
 Implement the Climate Action Plan for Community Recovery and lead the Climate Action Major City Goal.
 Coordinate and lead inter-departmental efforts to achieve carbon neutral municipal operations by 2030.
 Assess community vulnerability to the impacts of climate change and continue planning and implementation efforts that support resilience and adaptation through inter-departmental collaboration.
 Implement the Greenbelt Protection Program through land conservation planning, land stewardship, and real property acquisitions, and support development review.  Participate and play a leadership role on the Stormwater Program Technical Team and Steering Committee.
 Provide inspections and pre-season treatments in the creeks to reduce the likelihood of flooding; implement recovery efforts for threatened and endangered species through monitoring and habitat restoration projects; support regulatory compliance and development review activities.  Engage in community partnerships with arts, cultural, historical, environmental, social, civic, and business groups.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $679,725 $641,084 $700,649 9% $725,573 4%
Contract Services $266,073 $100,000 $250,000 150% $150,000 -40% Other Operating
Costs $71,560 $73,459 $73,459 0% $73,459 0%
Program Total $1,017,359 $814,543 $1,024,108 26%4 $949,032 -7% 4 2023-24 exhibits a 26% increase accounting for the La Loma Adobe Rehabilitation Phase I one-time funding included Contract Services.

Table A-10:

Financial Plan Page 132

Operating Budget Office of Sustainability
Major City Goal Contributions
The Office of Sustainability and Natural Resources is responsible for implementing large portions of the Climate Action, Open Space and Sustainable Transportation Major City Goal. Given the interconnectedness of housing, economic development, and diversity, equity, and inclusion with climate action goals, the Office of Sustainability will be involved in collaborating across all Major City Goals.

Opportunities and Challenges
As the state and federal governments continue to prioritize climate action, the City will monitor opportunities for funding of priority climate actions. Ongoing implementation of the Climate Action Plan will be a challenge due to the rapidly evolving regulatory environment and increasingly complicated technical issues.

The City’s Greenbelt Protection program has historically been able to significantly leverage its open space acquisition budget with grants from other agencies, creating the opportunity to pursue priority open space purchases that otherwise would have been very expensive. While the City has usually been successful in this regard, arranging external funding when needed oftentimes presents an additional challenge.

Other Key Points
 Implementing and updating the Climate Action Plan involves initiating multiple actions while moving other actions from pilot phase to ongoing implementation.  The Climate Action Plan for Community Recovery explicitly commits to equity, economic recovery and development, and housing, directly tying the work to all proposed Major City Goals.  The City’s continued commitment to the Greenbelt Protection Program necessarily means continued investments in Ranger Service to ensure long-term care and stewardship of the City’s cherished open space system.

Financial Plan Page 133

Operating Budget
General Fund Community Promotion
Community Promotion
Program Description
The Community Promotions program works to improve the quality of life for all City residents and visitors.

The program implements projects to help promote the City as a regional trade, recreation, and tourist center consistent with community goals. The program is administered by the Promotional Coordinating Committee (PCC) and works collaboratively with the City’s Tourism Business Improvement District (TBID) to ensure a unique San Luis Obispo experience for residents and visitors.

Core Services & Objectives
 To promote the City as a regional trade, recreation, and tourist center consistent with community goals.
 Support of cultural, recreational, and social activities to enhance the community’s well-being.  Develop promotional programs and projects for the City of San Luis Obispo.

Initiate and support community activities that are meaningful to residents and visitors of the City of San Luis Obispo.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $45,807 $38,609 $44,735 16% $46,234 3%
Contract Services $298,756 $328,000 $328,000 0% $328,000 0% Other Operating Costs $71,041 $39,000 $39,000 0% $39,000 0% Community Promotion Total $415,604 $405,609 $411,735 2% $413,234 0% Major City Goal Contributions
The Community Promotions program will support the implementation of the Economic Resiliency, Cultural Vitality & Fiscal Sustainability (ERCV&FS) Major City Goal through the work of the PCC in overseeing and directing the support local campaigns and promotions, and through supporting the arts and cultural organizations through grant programs and key partnerships.

Other Key Points
 The PCC will continue to implement the cultural activities grant program, formerly known as Cultural GIA, to support the cultural events and activities in the City.

Table A-11:

Financial Plan Page 134

Operating Budget
General Fund City Clerk
Office of the City Clerk
Program Description
The City Clerk’s office handles a myriad of duties relating to the official business of the City Council, its commissions, and committees. The City Clerk’s office is responsible for keeping minutes of City Council meetings; compiling the agenda and collecting backup information for each council meeting; processing council agreements; recording official documents; handling legal advertising; conducting municipal elections; maintaining current files on all commissions and committees; maintaining the city seal; and handling all other legal or official documents.

Core Services & Objectives
 Ensure that records are preserved as provided by City Charter and State and Municipal Law.  Administer procedures for City elections for elective offices, initiatives, referendum, and recalls.  Conduct elections that conform to the State Elections Code and the City’s campaign regulation Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $521,189 $498,159 $543,742 9% $563,092 4%
Contract Services $51,927 $157,200 $164,700 5% $164,700 0% Other Operating Costs $28,265 $49,345 $49,345 0% $49,345 0% City Clerk Total $601,382 $704,704 $757,787 8% $777,137 3% Opportunities and Challenges
The City Clerk’s office is continuing to implement Escribe as its Agenda Management System for the Advisory Bodies. Currently, only five of the 17 Advisory Bodies are using Escribe. This will provide the public with a one-stop location to find all agenda packets. In addition, the City Clerk’s office will be implementing hybrid meetings for City Council. The City Clerk’s office will also be working on Council Compensation and Election Regulations review in preparation for the 2024 Municipal Election.

Table A-12:

Financial Plan Page 135

Operating Budget
General Fund Office of DEI
Office of Diversity, Equity & Inclusion (DEI)
Program Description
The brand-new Office of Diversity, Equity, & Inclusion (DEI) is responsible for supporting organizational initiatives rooted in advancing San Luis Obispo’s efforts to be a more inclusive and equitable community.

The Office leads the implementation of the DEI Major City Goal (MCG) by working in collaboration with all City Departments to prioritize strategies and engage in meaningful practices, while enhancing partnership opportunities with community providers and planning groups to embed DEI concepts and tools in community-driven spaces. The Office promotes and works toward organizational wellbeing and justice, fosters healthy work environments, enhances hiring practices, strengthens public engagement, and creates inclusion in budgeting, planning, and policymaking. The Office also provides support to the Human Relations Commission (HRC) in reviewing, approving, and recommending grant applications.

Core Services & Objectives
 Ensure the implementation of the DEI Major City Goal.  Administer proceduresfor, and provide support to the Human Relations Commission in reviewing, approving, and recommending grants under their purview.  Lead the internal DEI Employee Committee in implementing trainings, strategies, and further DEI concepts and applications in all departments.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $113,673 $326,813 $171,806 -47% $182,539 6%
Contract Services $33,447 $497,500 $360,000 -28% $360,000 0% Other Operating Costs $2,104 $64,000 $64,000 0% $64,000 0% Office of DEI Total $149,224 $888,313 $595,806 -33%5 $606,539 2% Opportunities & Challenges
The Office of Diversity, Equity, & Inclusion is still relatively new and has several key projects and tasks to implement city-wide while ensuring a meaningful application is consistent within the City’s initiatives and strategies for long-term sustainable and transformational change. The Office offers a new perspective in city governance and operations by embedding equity and inclusion practices that fosters and enhances community engagement, transparency, and collaboration in policymaking and decision-making processes. 5 2023-24 shows a 33% reduction in total budget. The decrease accounts for one-time programs and resources (e.g., DEI Business grants, strategic planning, multicultural center feasibility study, consultant support, interns, etc.) associated with the startup of the program. It should be noted several of these programs are in progress and will continue in the 2023-25 Financial Plan. In addition, the 2022-23 budget is higher due to the delay in the 2021-22 DEI High Impact Grant cycle in which $150,000 carried into 2022-23.

Table A-13
Financial Plan Page 136

Operating Budget
General Fund IT – Network Services
IT Network Services
Program Description
The IT Network Services Program is responsible for ensuring that the City's information technology resources are effectively managed and used as key tools in improving organizational productivity, effectiveness, customer service and public access to City information. IT support services range from end user support to infrastructure design, installation, and maintenance. The Network Services program also provides training to City staff on the use of implemented technologies and applications. Additional Core Services include support of the City’s Public Safety departments and their technology needs. The Network Services program works with the Utilities departments to install, maintain, and secure their critical SCADA (Supervisory Control and Data Acquisition) systems.

Core Services
 Public Safety infrastructure support
 Core Network and Internet infrastructure support
 City cyber security services and threat monitoring
 Citywide Communication Support – radio system, wireless system, camera system, access control systems, telephones (VoIP & analog), cell phones
 Support City telemetry and SCADA systems
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,295,135 $1,321,609 $1,439,621 9% $1,485,405 3% Contract Services $440,645 $641,019 $500,079 -22% $500,740 0% Other Operating Costs $1,503,929 $1,540,014 $1,564,823 2% $1,568,910 0% Network Services
Total $3,239,708 $3,502,642 $3,504,523 0% $3,555,056 1% Major City Goal Contributions
Network Services supports all Major City Goals by providing services to ensure the reliability, continuity, and sustainability of network, server, storage, and desktop systems.

Opportunities and Challenges
Network Services is involved in building the support structure around the City’s investments in applications and infrastructure to ensure these are used to provide a high level of service to the public.

Network Services will continue to strengthen the City’s Public Safety communications infrastructure and the City’s underlying IT infrastructure platform. The Information Technology Division will continue engaging in opportunities to advance the Broadband Strategic Plan and recommendations for implementation.

Table A-14:

Financial Plan Page 137