San Luis Obispo City Council
June 6, 2023

Operating Budget Information Services
General Fund
IT Information Services
Program Description
The IT Information Services Program operates and maintains the City's geographic information system (GIS), enterprise databases, and enterprise applications. The Program provides accurate and comprehensive information services for managing resources, making informed decisions, and expediting work processes. The City’s GIS and enterprise applications have expanded over the years due to the valuable insights the data provides, and the IT Information Services Program continues to position itself to best serve the City’s needs now and into the future.

Core Services
 Enterprise Application Support
 Analysis and Training
 Database Management and Maintenance
 Motion Support
 GIS mapping and enterprise database support
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,277,850 $1,194,324 $1,413,710 18%6 $1,468,351 4% Contract Services $6,864 $11,400 $11,400 0% $11,400 0%
Other Operating
Costs $58,202 $71,500 $74,195 4% $74,195 0%
Program Total $1,342,915 $1,277,224 $1,499,305 17% $1,553,946 4% Major City Goal Contributions
Information Services provides mapping, analyzing, and reporting support for elements of Housing and Homelessness, Climate Action, and Economic Resiliency, Cultural Vitality & Fiscal Sustainability Major City Goals.

Opportunities and Challenges
The use of GIS technology continues to expand. This comes with the challenge of maintaining adequate staffing levels as the organization continuesto depend on and invest in GIS-centric applications and systems and automating work processes. The Information Services Motion Core Team continues to develop the Oracle ERP System and resolve compliance-based issues identified post-implementation. Keeping up with changing technology and maintaining the best management practices remains challenging with current resources.
6 Variance due to approved wage increases.

Table A-15:

Financial Plan Page 138

Operating Budget City Attorney

CITY ATTORNEY
Mission Statement
Advancing excellence and ethics in the delivery of legal advice and services to the City Council, Advisory Bodies and City Staff to support legally informed decision-making, legal compliance, equity, accountability, and transparency in public service.

About the Department
The legal services program is a support function that provides legal advice and representation to the City Council, all City departments, and City advisory bodies to accomplish Major City Goals, other important objectives, and core operational functions in accordance with the law.

The responsibilities include: providing Council, Planning Commission, Advisory Bodies, and cross departmental staff with legal review and advice to ensure general compliance with applicable laws and to minimize liability exposure; defending or managing the defense of claims and litigation against the City and initiating civil actions on behalf of the City; enforcing and prosecuting violations of the Municipal Code, including both criminal violations and civil/administrative enforcement; providing legal analysis and support in the City's review of and response to proposed county, state, and federal legislation; advising City staff on compliance with the California Public Records Act, and reviewing and producing documents subject to disclosure; and administering and providing staff support for administrative citation appeals to hearing officers and the City’s Administrative Review Board or Construction Board of Appeals.

Financial Plan Page 139

Operating Budget City Attorney
The Department at a Glance
Staffing
94%
Contract Services
3%
Other Operating Costs
3%
Chart A-17: EXPENDITURES BY FUNCTION
Program 2021-22
Actuals
2022-23
Budget
2023-24
Budget
2024-25
Budget
City Attorney $1,374,705 $1,305,660 $1,425,044 $1,497,103 City Attorney Total $1,374,705 $1,305,660 $1,425,044 $1,497,103 Table A-16
Financial Plan Page 140

Operating Budget City Attorney
Chart A-19: Department Organizational Chart1
1 Does not include supplemental or contract positions.

City Attorney's
Department
(6 FTE)
City Attorney
(1 FTE)
Assistant City Attorney
(1 FTE)
Deputy City Attorney
(1 FTE)
Legal Analyst
(1 FTE)
Paralegal, Legal Assistant
(2 FTE)
Financial Plan Page 141

Operating Budget City Attorney
2023-25 Department Goals
As a support department, the City Attorney’s Office primary goal is to ensure that the City Council, its advisory bodies, and all City departments and staff are fully informed of available legal options and compliant with applicable laws in the implementation of Major City Goals and delivery of core services.

Strategic Goal(s)
Provide timely and responsive legal advice and support to City Council, Planning Commission, Advisory Bodies, and all City departments to ensure legally compliant implementation of Major City Goal work programs and delivery of core services.

Provide proactive and regular training and support to the City Council, Advisory Bodies, and all City departments regarding compliance with public agency transparency and ethics laws, including the Brown Act, Public Records Act, Political Reform Act, and Government Code Section 1090, as well as Land Use, Planning, and Housing laws, regulation of public spaces, public contracting and bidding laws, public employment, and labor laws, first amendment and civil rights laws, and elections laws.

Provide timely and effective legal representation and case management of civil claims and litigation cases, as well as effective criminal and civil enforcement and prosecution of the City’s Municipal Code to minimize liability exposure and enhance community welfare.

Continue with training and assignment of new staff to achieve departmental sustainability and stability, and to enhance responsiveness, efficiency, and effectiveness in the delivery of legal services.

Financial Plan Page 142

Operating Budget
General Fund City Attorney
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
Actual2
2023-24
Target
2024-25
Target
Timely and Responsive
legal advice and
support
Strategic Goal:

Department Objectives
Administrative Citation Appeals
Received by the City 122 76 120 120
Appeals closed without need of a
hearing3
39 16 25 25
City assisted corrections to
defective appeals to allow access to
hearing
18 5 15 15
City facilitated hearings on the
record without need for personal
appearance by Appellant
29 23 30 30
# of hearing days scheduled4 14 12 12 12
Legal Training &
Compliance
Strategic Goal:

Department Objectives
# of Council, Staff, and Advisory
Body legal trainings, legal updates,
and compliance advisory sessions
6 5 116 12 157
Municipal Litigation &
Prosecution
Management
Strategic Goal:

Department Objectives
Percentage of Claims Resulting in
Litigation 14%8 4.7% <5% <5%
Liability Claims Against the City
Reviewed/Managed 67 64 70 70
2 As of 3/31/2023
3 Closed in some way that did not include a decision being issued (e.g., withdrawn by appellant, untimely filed, voided by the issuing department)
4 If more than one hearing officer convened hearings on the same day, those are counted separately. 5 The ongoing time and attention demanded by the organizational assessment and the delay in bringing that effort to a close (so its staffing and other recommendations could be implemented) reduced the amount of time available for planning and presenting these legal training sessions. 6 Including those planned through June 2023
7 As newer staff become more confident in their positions, capacity to conduct trainings should increase. 8 This high percentage is from nine cases. Eight of those are: a person injured during after-hours, reckless use of a City park; an unfair labor practices charge; a writ petition to force the City to permit a disqualified cannabis business applicant; damage done to a gas main during a contractor’s work for the City; a writ to force the issuance of a permit for a yard structure built in violation of the building code; injuries due to a trip and fall on private property near a City sidewalk; a bicyclist fatality; and injuries due to a limb falling from a privately owned tree. The ninth lawsuit was known to not involve the City but was filed to include it anyway due to the plaintiff’s failure to accurately and timely assess potential liability. The City was eventually dismissed from the case following production of discovery responses that supported its clear non-involvement.

Table A-20:

Financial Plan Page 143

Operating Budget
General Fund City Attorney
City Attorney
Program Description
The City Attorney department has only one program that completes all the legal and administrative support functions under its purview.

Core Services & Objectives
 Enhance and maintain a high level of legal support to City government.  Provide prompt, thorough legal advice in response to inquiries, with emphasis on legal options.  Minimize liability exposure of the City through the practice of preventative law.  Apprise City Council on anticipated and current litigation, legislation impacting the City, and other significant legal matters.
 Strengthen Municipal Code enforcement practices.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,146,056 $1,217,800 $1,329,184 9% $1,409,243 6% Contract Services $87,695 $63,395 $48,500 -23%9 $47,905 -1% Other Operating Costs $140,954 $24,465 $47,360 94%10 $39,955 -16% City Attorney Total $1,374,705 $1,305,660 $1,425,044 9% $1,497,103 5% Major City Goal Contributions
Various department attorneys and staff have been assigned to support the work programs of each Major City Goal. Staff contributions are difficult to predict in advance, but the City Attorney currently anticipates that the largest contributions from the department over the next two years will be advising on a legally compliant citywide fee study, implementation of emerging housing laws, legal advice and support related to approval of alternative Capital Improvement Project delivery, study sessions for both creek maintenance/flood preparedness funding options and housing needs, analysis of City options to support renter protections, election system evaluation and implementation to advance DEI Objectives, 9 About $12,000 was moved from Contract Services to Other Operating Costs to cover the costs of legal research tools and expanded access to electronic reference materials. 10 The high percentage here is due to the change described in the previous footnote and also a one-time, $8,000 Council approved increase to Education & Training to fund the City Attorney’s enrollment in a week-long mediation training (as referenced in the recent contract renewal). Because this is a one-time expenditure, the budget reduced in FY 2024-25.

Table A-21:

Financial Plan Page 144

Operating Budget
General Fund City Attorney
homelessness response options, as well as defense of litigation in a manner that preserves and advances local control and legal alternatives supportive of Major City Goals.

Opportunities and Challenges
With increased department staffing approved by Council during the last financial plan, the department will have the opportunity to welcome new staff and allocate workload to ensure timely and effective delivery of legal support services. Starting in July 2023 the department should have all approved positions filled and working full-time hours, as supervisors continue to onboard and train newer staff members in their roles and assignments. Increased staffing is an exciting opportunity to enhance departmental effectiveness and ensure the long-term structural functionality of the office, but the training process is time and staff resource intensive and will result in short-term constraints on capacity and potential delays in responsiveness. Staff will be implementing and enhancing utilization of internal workload management and tracking tools and encouraging broader use of the Department’s online legal support request/intake process to effectively allocate workload, balance and track competing priorities, and ensure important deadlines are met.

Financial Plan Page 145

Operating Budget Finance

FINANCE
Mission Statement
Safeguarding the City’s resources and fiscal health by
implementing financial policies, procedures, and reporting systems to serve the citizens and enable operating departments to achieve their objectives.

About the Department
The Finance Department is responsible for managing the City’s financial operations in accordance with applicable law, policies, standards, and procedures. This includes the preparation of the City’s budget and financial reports, administration of the City’s treasury and revenue operations, management of the City’s fiscal resources, and administration of the accounting functions including indirect City-wide costs not easily charged to operating programs or projects. The Department also prepares the City’s audit and its Comprehensive Annual Financial Report as well as the Popular Annual Financial Report. Lastly, the Department assists the City Manager’s office in monitoring and reporting on both annual revenues and expenditures.

Financial Plan Page 146

Operating Budget Finance
The Department at a glance
Staffing
79%
Contract
Services
10%
Other Operating Costs
11%
Chart A-23: EXPENDITURES BY FUNCTION
Program 2021-22
Actuals
2022-23
Budget
2023-24
Budget
2024-25
Budget
Finance Administration $618,102 $557,524 $330,994 $326,599 Budgets $220,038 $173,883 $222,653 $253,217
Revenue Management $438,580 $467,947 $550,776 $493,195
Purchasing $202,712 $218,874 $246,560 $256,936
Accounting $907,321 $898,785 $1,097,098 $1,142,608
Total Finance $2,386,753 $2,317,013 $2,448,081 $2,472,555 Non-Departmental (Citywide) $664,248 $2,912,928 $1,432,583 $2,746,139 Total Non-Departmental $664,248 $2,912,928 $1,432,583 $2,746,139 Table A-22:

Financial Plan Page 147

Operating Budget Finance
A-24: Department Organizational Chart1
1 Does not include Supplemental or Contract Positions.

Finance
(14.00 FTE)
Finance
Financial
Administration
(1.00 FTE)
Accounting
(7.00 FTE)
Budgets
(1.00 FTE)
Purchasing
(2.00 FTE)
Revenue
Management
(3.00 FTE)
Support
Services/NonDepartmental
Financial Plan Page 148

Operating Budget Finance
2023-25 Department Goals
Department strategic prioritiesfor the 2023-25 Financial Plan are to support the advancement ofthe City’s overall objectives 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 assigned to an internal services department (listed in program sub-sections).

Strategic Goal(s)
Continue to monitor the City’s unfunded liabilities for the pension and retiree health plan and make recommendations as needed to achieve the City Council directed goal to reduce the pension unfunded liabilities and maintain the retiree health plan.

In coordination with Information Technology and Human Resources, continue to enhance and utilize the Oracle ERP and Human Resources Management System in support of accurate and timely accounting processes and reporting.

In coordination with the Office of Sustainability and administration, continue to enhance the City’s purchasing policy to support Climate Action, DEI, and the Local Economy.

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
2023-24
Target
2024-25
Target
Enables & enhances
transparency, accountability
& integrity.

Strategic Goal: Fiscal Policies
# of calendar days following
year-end until ACFR is issued 180 170 170 170
# of audits/reviews
conducted/ # of additional
agreed upon procedure audits
performed
2/2 2/2 2/2 2/2
Protects & prudently
manages its financial
resources.

Strategic Goal: Fiscal Policies
# of funds within fund balance
requirements/ total funds with
fund balance requirements
8/8 8/8 8/8 8/8
Net annual direct debt per
capita (General Fund2) $43 $43 $39 $39
Twelve-month total rate of
return/City portfolio -3.66% -3.69% 3% 3%
2 The California Government Code provides for a legal debt limit of 3.75% of assessed valuation. The City’s debt management policy, however, sets a more restrictive debt limit of 2% of valuation. This equates to a legal debt limit per capita of $8,500 and a City policy per capita limit of $4,500. The City remains well below its per capital limit.

Economic Stability Housing Climate Action DEI Other Department Objectives Table A-24:

Financial Plan Page 149

Finance Administration
Operating Budget
General Fund
Finance Administration
Program Description
This program leads, organizes, and monitors the divisions within the Finance Department. It is responsible for managing the City’s treasury function and financial operations in accordance with established accounting standards, policies and strategic plans.

Core Services & Objectives
 Be a proactive participant in citywide strategic planning and decision-making, adding value as a provider of financial strategy advice, analysis, auditing, and investment and debt management.  Continue developing and implementing operational efficiencies and best practices.  Provide fiscal policy advice and guidance.
 Provide overall administration and leadership of department.  Manage cash flow and invest cash in accordance with established policies and procedures.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $570,530 $524,884 $278,354 -47% $293,959 6%
Contract Services $32,446 $10,000 $30,000 200% $10,000 -67% Other Operating Costs $15,126 $22,640 $22,640 0% $22,640 0% Finance Admin Total $618,102 $557,524 $330,994 -41% $324,559 -1% Major City Goal Contributions
The Finance Department supports all Major City Goals by providing timely and regular reporting to the City Council and the community on the status and progress of the strategic goals. The department has an integral role in the Economic Stability goal and its strategic approach to pension obligations and funding.

Opportunities and Challenges
As of a result of the 2023 storms that resulted in two separate emergency declarations at the Federal, State and local level, Finance staff is playing a key roll in making sure that costs are accurately tracked in 3 A vacant Finance Admin Assistant position was reclassified to a Payroll Specialist and the FTE was moved to the Accounting division. Additionally, the Infrastructure Financing Analyst was moved from Finance Administration to CSG Administration.
4 In between Financial Planning years, budget is moved from the Budgets division to the Finance Administration budget to help fund various financial analyses.

Table A-25:
3 4
Financial Plan Page 150

Operating Budget
General Fund Finance Administration
order to maximize the possibility of reimbursement through FEMA and CalOES via the California Disaster Assistance Act (CDAA) program. Finance Administration is also responsible for ongoing reporting to the US Treasury related to the use of State and Local Fiscal Recovery Funds provided to address the fiscal impacts of the COVID-19 pandemic, and is at the forefront of investment and debt issuance strategies which will both be strategically pursued to best serve the long-term fiscal health of the City in a time of economic uncertainty.

Financial Plan Page 151

Budgets
Operating Budget
General Fund
Budget
Program Description
The Budget Program is responsible for citywide coordination of the development and preparation of the City’s two-year Financial Plan budget, the Supplemental Budget and corresponding quarterly and midyear reports to the City Council. The Financial Plan allocates the City’s resources to achieve the highest priority objectives established by Council. The program is responsible for implementation of budgetary controls and financial reporting and compliance with adopted Financial Plans and budget appropriations.

Core Services & Objectives:
 Lead development and preparation of the two-year Financial Plan in accordance with Council adopted highest priorities and fiscal policies.
 Evaluate, monitor, and produce reports documenting the City’s financial progress for internal customers and for presentation to the City Council every three months.  Manage and update the five-year budget forecast for all major funds and prepare periodic revenue and expenditure estimate updates.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $197,091 $142,383 $161,153 13% $171,717 7%
Contract Services $21,828 $22,000 $52,000 136% $72,000 38% Other Operating Costs $1,119 $9,500 $9,500 0% $9,500 0% Budget Total $220,038 $173,883 $222,653 28% $253,217 14% Opportunities and Challenges
Maintaining a balanced forecast during a time with a looming recession, recovery from a natural disaster, and sky-rocketing inflation is no easy feat. The Budget division will continue to work closely with the departments in order to ensure fiscal adherence to the City’s policies such as the Fiscal Health Contingency Plan6. Quarterly reports to Council will help the City remain nimble and respond to economic conditions in a timely manner, should the fiscal conditions change. 5 Increase due to Budgeting Software budget moved from the Capital to Operating budget. There is also an increase in FY 2024-25 to account for costs associated with community outreach and planning for the 2025-27 Financial Plan.

This line item alternates between Finance Administration and Budgets each year. 6 The Fiscal Health Contingency Plan is a framework in responding to adverse fiscal circumstances like natural disasters and is intended to help the General Fund stay in good financial condition by limiting expenditures.

Table A-26:
5 Financial Plan Page 152

Revenue Management
Operating Budget
General Fund
Revenue Management
Program Description
The Revenue Management Program administers the City’s treasury and revenue operations in accordance with established fiscal policies and industry best practices. It provides day-to-day cashier service to City customers and is proactive in developing automated features and conveniences for an efficient revenue collection.

Core Services & Objectives
 Ensure Fiscal Sustainability and Responsibility
 Administer the Finance public counter and daily cashiering duties such as deposits and invoices.  Promote and enhance electronic payment options for customers.  Administer the City’s Business tax and license program.  Monitor receipts of local revenues and initiate effective collection strategies to ensure that revenues and taxes are paid by those who are obligated to pay them.  Manage collection programs for Transient Occupancy Tax, Utility User Tax, , and Cannabis Tax.  Coordinates the annual update and periodic changes to the Master Fee Schedule, ensuring that customers are being charged the Council-approved rate.
 Provides revenue analytics and forecast updates on a monthly basis.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $307,149 $288,007 $300,076 4% $314,045 5%
Contract Services $122,115 $163,740 $234,500 43% $162,950 -31% Other Operating Costs $9,317 $16,200 $16,200 0% $16,200 0% Revenue Mgmt Total $438,580 $467,947 $550,776 18% $493,195 -10% Opportunities and Challenges
The division continues its transactional data analysis which will drive future decisions on cash flow levels and liquidity for use in investments and acquisitions. Staff is also working closely with the Administration department to incorporate DEI-related Major City Goal initiatives in the business license renewals. 7 Includes one-time budget for a comprehensive Fee Study in FY 2023-24.

Table A-27:
7 Financial Plan Page 153

Purchasing
Operating Budget
General Fund
Purchasing
Program Description
The Purchasing Program is responsible for supporting and facilitating the timely and efficient procurement of supplies, materials, equipment, and services required by City Departments while ensuring compliance with City Policies, applicable government regulations, and best practices in public sector procurement to obtain the lowest cost while maintaining appropriate internal controls. The program aids all departments in their purchasing activities.

Core Services and Objectives:
 Responsible for City purchasing and contracting policies to effectuate more efficient and standardized purchasing procedures for citywide implementation.  Oversee City purchasing and ensure compliance with all applicable laws, regulations, and policies.  Develop and maintain standards and procedures for purchasing activities for all departments.  Maintain best practices in purchasing to ensure responsible use of City funds.  Administer City contracts, assist in contract negotiations, and performance compliance.  Provide quality service, analytical support and information regarding procurement and contracting to all departments.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $184,400 $198,164 $226,860 14% $237,036 4%
Contract Services $14,681 $16,210 $15,200 -6% $15,400 1% Other Operating Costs $3,630 $4,500 $4,500 0% $4,500 0% Purchasing Total $202,712 $218,874 $246,560 13% $256,936 4% Opportunities and Challenges
Purchasing is leading and coordinating the City’s FEMA COVID reimbursement and has successfully obtained over $300,000 in reimbursement payments for the City’s COVID expenses in December 2022, and April 2023. Purchasing is still negotiating with FEMA for reimbursement of a potential of $626,000 in additional Covid emergency expenses and is expects final determination from FEMA for these expenses in the course of the 2023-25 Financial Plan
Purchasing is also coordinating the January 2023 storm FEMA recovery efforts and will be working with Ernst and Young on the City’s FEMA storm reimbursements over the course of the 2023-25 Financial Plan.

Purchasing is also working to complement the City’s Major goals around Climate Action by drafting an update to the City’s Environmentally Preferable Purchasing Ordinance to incorporate updated best-inclass third-party label certification standards to its purchased products and services that mirror the City’s investment policy around ESG (Environmental, Social, Governance criteria).

Table A-28:

Financial Plan Page 154

Operating Budget Accounting
General Fund
Accounting
Program Description
The Accounting Program prepares citywide financial statements, ensures integrity of financial data, processes accounts payable and payroll, and prepares financial reports in compliance with Federal and State regulations. The Program is responsible for developing and monitoring the reporting systems that help assure the City’s long-term fiscal health, providing quality customer service, and protecting the City’s financial assets from unauthorized use.

Core Services and Objectives:
 Provide accurate and timely financial reports to internal and external stakeholders.  Process timely cash disbursements to City business partners.  Maintain City employee payroll records and meet payroll disbursement and reporting deadlines.  Provide general oversight over the City’s investments, banking, and debt services.  Manage banking services and debt service administration.  Provides General Accounting services to the organization and monitors compliance with accounting standards, policies and best practices.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $742,741 $728,665 $918,478 26% $963,988 5%
Contract Services $163,825 $160,020 $168,520 5% $168,520 0% Other Operating Costs $755 $10,100 $10,100 0% $10,100 0% Accounting Total $907,321 $898,785 $1,097,098 22% $1,142,608 4% Opportunities and Challenges
Completing the implementation of all aspects of the Oracle Motion system, such as payroll configuration changes and accounts payable improvements, will provide challenges to workload and staffing resources that will need to be involved in the deployment of the system while simultaneously providing ongoing operations. Appropriate resources have been approved in this budget as these investments will result in more efficient, effective, and accurate day-to-day operations in the long-term. 8 FY 2023-24 includes budget for a Payroll Specialist FTE that was moved from the Finance Administration division.

Table A-29:
8 Financial Plan Page 155

Operating Budget
General Fund
Support Services &
Non-Departmental
Support Services & Non-Departmental Expenses
Program Description
The Support Services and Non-Departmental Program accounts for indirect Citywide costs not clearly linked to departmental operating programs or projects. The Finance Department is responsible for disbursing the allocated budget according to established policies.

Core Services and Objectives:
 Effective budgeting, disbursement, and accounting for Citywide costs in accordance with adopted City policies
Budget is allocated for:
 Council approved negotiation parameters for bargaining units.  Citywide copier maintenance and supplies.
 Citywide postage and mailing supplies.
 Citywide membership and conference fees for the League of California Cities.  Ventures and Contingency Funding for use at the City Manager’s discretion to support innovative proposals.
 General Fund leave payouts and staffing related contingency funds.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $48,037 $2,513,228 $1,000,883 -60% $2,314,439 131% Contract Services $616,211 $399,700 $431,700 8% $431,700 0% Program Total $664,248 $2,912,928 $1,432,583 -51% $2,746,139 92% 9 FY 2022-23 budget includes the approved equity adjustments for SLOCEA, Confidential, and Management employees for the entire City. In FY 2023-24, this budget was included in the department base budgets, explaining the 60% decrease. FY 2024-25 includes a contingency for future negotiations with various bargaining units.

Table A-30:
9 Financial Plan Page 156

Operating Budget Human Resources

HUMAN RESOURCES
Mission Statement
Serving the people who serve our community.

About the Department
The Human Resources Department provides support to all City departments including coordination of recruitment and selection processes; onboarding; classification and compensation; human capital management support; labor relations and negotiations; performance management; employee training and development; and employee benefit administration. In addition, the Department oversees Risk Management and the Insurance Fund which includesliability and property claims administration; workers' compensation administration; employee safety and compliance; and insurance review. The Department’s Wellness program promotes a healthy and safe organization through the Employee Assistance Program, a newly established Preventative Mental Health Services Program for public safety employees, and various education and wellness activities.

Financial Plan Page 157

Operating Budget Human Resources
The Department at a glance
Staffing
75%
Contract
Services
22%
3%
Chart A-32: EXPENDITURES BY FUNCTION
Other Operating Costs
Program 2021-22
Actuals
2022-23
Budget
2023-24
Budget
2024-25
Budget
Human Resources Admin $1,924,607 $1,667,537 $2,087,827 $2,190,716 Wellness $10,134 $17,411 $53,358 $55,819
Human Resources Total $1,934,741 $1,684,948 $2,141,185 $2,246,535 Table A-31:

Financial Plan Page 158

Operating Budget Human Resources
Chart A-33: Department Organizational Chart1
1 Does not include supplemental or contract positions.

Human
Resources
Human
Resources
(10.00 FTE)
Risk
Management
Wellness
Financial Plan Page 159

Operating Budget Human Resources
Table A-34: Operating Budget Changes
SOBC Description Type 2023-24 2024-25
1 Contract Half-Time
Human Resources
Specialist -
Onboarding
This request will support the Human Resources
Department to expand the City's onboarding
program. Based on the priority, this position could
either work to expand a job specific onboarding
program across the organization, or to create and
support CSG departments to transition to an
electronic onboarding system for supplemental
employees and serve as a general resource to
answer questions for the supplemental workforce.

One-time $46,895 $48,583
2 SLO Onboarding
Assistance
Resources (SOAR)
Program
Funding to participate in the Chamber of Commerce
SOAR program to provide relocation and
community building assistance to new hires
relocating from out of area. This level of funding will allow six new hires per year to go through the SOAR
program. Recommended that this funding is onetime while the department assesses if the program is helpful for new hires. If the program is successful, the department will request ongoing funding in the
2025-27 Financial Plan.

One-time $6,000 $6,000
3 Preventative
Mental Health
Services Program
for Public Safety
The City is requesting to establish an ongoing
preventative mental health service program for
employees in the police and fire departments. The
purpose of this program is to provide confidential
employee support services by trained professionals
who specialize in serving public safety personnel so
they can continue to effectively serve the
community. Following the tragic death of Detective
Benedetti, the City has been providing confidential
mental health services for police and fire personnel
at no cost to the employee. This has allowed
employees an avenue to access mental health
professionals specializing in public safety without
feeling like they need to file a workers’
compensation claim to get support or assistance. To
date, it is our understanding that 100% of the
individuals that have received support through the
preventative program have not filed a workers’
compensation claim; therefore, proving its success
and importance to the health and well-being of our
employees.

Ongoing $35,000 $37,000
TOTAL $87,895 $91,583
Financial Plan Page 160

Operating Budget Human Resources
2023-25 Department Goals
The Human Resources Department has developed a strategic plan that aligns with the 2023-25 Financial Plan and includes objectives of integrated human resources services, employee development and growth, and an engaged and aware culture. The Human Resources Department aims to achieve the objectives listed above through the following strategic goals.

Strategic Goals
Present high-quality integrated human resources solutions, aligned with fiscal sustainability and compliance, to effectively deliver city services.

Provide tools and opportunities that empower employees to reach their full potential.

Promote a high-performing and self-sufficient employee organization that is connected to the community through shared organizational values and goals.

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
FY2022-23
Actual*
2023-24
Target
2024-25
Target
Integrated HR
Services
(Strategic Goal)
Average days between injury and Workers’
Compensation claim filed. 5 4 3 3
Achieved lower severity of Workers’
Compensation claims than the risk pool Yes Yes Yes Yes
Annual liability claims payment under the
Self-Insured Retention amount. No No Yes Yes
Employee
Development &
Growth
(Strategic Goal)
Percentage of On-Time Employee
Performance Evaluations 86% 92% 95% 95%
Percentage of Internal Promotions 49% 35% 40% 40%
Training Sessions Coordinated 56 15 20 20
Engaged and Aware
Culture
(Strategic Goal)
Number of Policies Communicated 44 80 75 75
Informational Sessions Coordinated 357 266 200 200
*As of March 31, 2023
Economic Stability Housing Climate Action DEI Other Department Objectives Table A-35:

Financial Plan Page 161

Operating Budget Human Resources
General Fund Wellness
Human Resources
Program Description
The Human Resources Administration Program provides support to all City departments in all aspects of attracting and retaining highly qualified employees. The Program manages a variety of functions including coordination of recruitment and selection, classification and compensation, human capital management support, performance management, employee training and development, labor relations and negotiations, employee benefits, and statutory and regulatory compliance.

Core Services & Objectives
 Employee recruitment, selection, orientation, development, and training administration.  Employee classification, compensation, and benefits administration.  Human capital management support.
 Employee performance management.
 Employee/employer labor relations and negotiations.
 Legal compliance.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,400,484 $1,309,854 $1,451,978 11% $1,546,413 7% Contract Services $466,908 $308,883 $569,349 25%2 $577,803 0% Other Operating Costs $57,215 $48,800 $66,500 36%3 $66,500 0% Total $1,924,607 $1,667,537 $2,087,827 14% $2,190,716 5% Major City Goal Contributions
HR supports the Economic Resiliency, Cultural Vitality and Fiscal Sustainability Major City Goal through enhancement of City operations related to employment and training and development as well as efficiencies within the Oracle Cloud system. HR also contributes by negotiating successor agreements with employee groups in alignment with Council adopted Labor Relations Objectives.

The program also supports the Diversity, Equity, and Inclusion Major City Goal through review and revision of Human Resources policies and practices and improvements to the recruitment and selection process. 2 Increased recruitment expenses, legal counsel to support labor negotiations and investigations, staff onboarding 3 Increased funding for staff training and development
Table A-36:

Financial Plan Page 162

Operating Budget Human Resources
General Fund Wellness
Wellness
Program Description
The Wellness Program aidsin managing the life experience of our employees by providing employee tools and education to improve their physical and emotional well-being, thus enhancing employee productivity, resiliency, and performance. The program provides employees with education and programs around fitness, nutrition, and health and safety information. In addition, the program provides professional counseling and referral services through the Employee Assistance Program and a Preventative Mental Health Services Program for public safety employees.

Core Services & Objectives
 Maintain wellness rooms for employee use.
 Encourage physical activity and healthy lifestyle.
 Provide health, wellness, and safety information to employees.  Continue to encourage utilization of the Employee Assistance Program.  Provide public safety employees access to preventative mental health services.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Contract Services $7,983 $14,911 $50,358 238% $52,819 5% Other Operating Costs $2,151 $2,500 $3,000 20% $3,000 0% Wellness Total $10,134 $17,411 $53,358 206%4 $55,819 5% 4 New Preventative Mental Health Program for Public Safety Employees.

Table A-37:

Financial Plan Page 163

Operating Budget Human Resources
Insurance Fund Risk Management
Risk Management – Insurance Fund
Program Description
The Risk Management Program aims to protect the organization through risk transfer, risk control and risk avoidance. Safety in the workplace and in the community is promoted by minimizing accidents, reducing liabilities and associated costs. The City maintains an Insurance Fund for the purpose of paying its annual premiums for liability, workers’ compensation, special events, volunteer, property, and other insurances needed to protect the City and to manage the fluctuations in claims-related expenses.

Core Services & Objectives:
 Monitor liability claims and workers’ compensation claims and recommend operating changes to reduce risk of liability or injury.
 Review insurance plans and coverage and process renewals annually, seeking the most costeffective methods of insuring.  Review standards for insurance requirements in contracts with those who do business with the City to make sure the City is adequately protected in the event of accidents or incidents.  Continue to review and update safety policies and procedures, increase safety awareness, and reduce preventable injuries through training and education of employees. Support a culture of safety among city employees, maintain compliance with applicable regulations, and implement improvements to ensure a high quality of life in the community.

Insurance Fund Policy: The City shall maintain an Insurance Fund to manage payments for liability, workers’ compensation, crime, pollution, special events, property, and volunteer insurance.

Within the Insurance Fund, a self-insured retention (SIR) will be set aside to cover expenses associated with claims from the Excess Liability Insurance Program. The SIR will be funded based on 150% (75% confidence level) of the previous five-year average claims experience (claims paid, reserves for known claims, and administrative expenses). The Insurance Fund will maintain a reserve sufficient to guard against substantial claims which will be determined based on annual actuarial report information.

If required due to depletion of fund balance, sufficient annual appropriations will be transferred to the Insurance Fund from the General Fund in the amount needed to ensure the 150% funding status.

Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Transfers In from General Fund5 4,146,445 4,250,000 6,000,000 41% 6,000,000 0% 5 The Insurance Fund is funded entirely through the General Fund transfer in; however, the Enterprise Funds’ allocations are determined through the annual Cost Allocation Plan and budgeted as part of the reimbursement transfers into the General Fund.

Table A-38
Financial Plan Page 164

Operating Budget Human Resources
Insurance Fund Risk Management
Fund Balance and Fiscal Outlook
The intent for the insurance fund balance is to maintain an adequate reserve that can be used to pay unanticipated claims costs. Therefore, the funds being transferred in from the general fund are greater than the estimated expenses, so that the remaining funds may be added to the reserve.

Projected 2022-23 Year End
Insurance Fund Balance $958,000
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Workers Comp Insurance $2,181,044 $2,844,913 $2,516,607 -13% 6 $2,610,281 4%
Liability Insurance $1,627,589 $1,677,911 $2,431,373 45% 7 $2,333,686 -4%
Other Insurance $442,439 $515,205 $607,493 18%
8 $724,892 19%
Grand Total $4,251,072 $5,038,029 $5,555,473 10% $5,668,859 2% Major City Goal Contribution
Supports the Economic Resiliency, Cultural Vitality and Fiscal Sustainability Major City Goal through continuing to monitor liability and workers’ compensation claims through actions aimed at reducing liability and workers’ compensation costs.
6 Transition in CJPIA membership from primary program to excess program, which lowers premium costs 7 A portion of this funding is to build up the fund reserve for future unanticipated costs 8 Bound by changes in market conditions for insurance premiums Table A-39:

Table A-40:

Financial Plan Page 165

COMMUNITY SERVICES GROUP
Community Development • Parks & Recreation • Public Works • Utilities The Community Services Group (CSG) is comprised of the City’s four operating departments. This reorganization was established as a part of The Organization of the Future in 2019 as a long-term approach to coordinate four departments with related staffing structures and function. The purpose of this effort was to provide more direct support and strategic coordination between key operating departments delivering direct services and projects to the City. CSG operations are comprised of General Fund and the City’s four Enterprise Funds: Water, Sewer, Parking, and Transit.

Community Services Group Administration
CSG’s Administration’s focus is on the production of core services, fiscal management of the Capital Improvement Program, General Fund Departmental budgets and the four enterprise funds, the advancement of key Major City Goals and objectives, identification of new departmental efficiencies, communication with the public, and City staffing transitions. The CSG Business and Administrative Manager reports to the Assistant City Manager for Community Services and directly manages the four departments’ analysts, a Financial Analyst – Infrastructure Investment, and an Administrative Assistant.

This supports coordination and collaboration related to fiscal, policy, and project management efforts among the four departments. The CSG Analyst team continues to focus on budgetary support as Fiscal Officers, streamline processes and procedures aligned with City policies, department project management support, and analyze policies and provide recommendations.

A continued new focus in the next Financial Plan is the addition (via department transfer, Finance to CSG) of the Financial Analyst to the CSG. The Financial Analyst – Infrastructure Investment position is new to the organization within the last 5 years, originally housed within the Finance Department, and plays a crucial part in the management of the AB 1600 program, including development agreement and impact fee oversight, among other fiscal responsibilities. This position was moved to be within the CSG, as the position collaborates closely with all the departments within CSG, Community Development, Parks and Recreation, Public Works, and Utilities, related to oversight of Community Facility Districts (CFDs), development agreements, reimbursement agreements, and impact fee fund management that affect all of these departments. The Financial Analyst position functions better centralized under CSG, with continued strong partnership and communication with the Finance Department.

The core focus of CSG remains to directly serve and communicate with the public while providing high quality services projects and programs.

Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $614,821 $517,213 $687,514 33%1 $725,710 6%
Contract Services $37,527 $42,833 $40,000 -7% $40,000 0% Other Operating Costs $7,764 $13,021 $13,020 0% $13,020 0% CSG Admin Total $660,112 $573,066 $740,534 29% $778,730 5% 1 This increase is a result of the Financial Analyst – Infrastructure Investment position moving from the Finance Department to the Community Services Group Administration, as detailed above.

Table A-41:

Financial Plan Page 166

Operating Budget Community Development

COMMUNITY DEVELOPMENT
Mission Statement
Our mission is to serve all persons in a positive and courteous manner and help ensure that San Luis Obispo continues to be a healthy, safe, attractive, and enjoyable place to live, work, or visit. We help plan the City's form and character, support community values, preserve the environment, promote the wise use of resources, and protect public health and safety.

About the Department
The Community Development Department includes the Administration, Housing Policy and Programs, Planning, Engineering, and Building & Safety divisions which develop, implement, and track guiding policies in the City's General Plan. Plans for new construction are reviewed through planning applications to ensure compliance with city standards and policy objectives. Construction is supported through the implementation of zoning, building, and engineering codes and coordination with various City departments. The Community Development Department provides service to the community directly at its public counter, and services are offered online on its website. The department helps maintain the health and safety of the community directly through code enforcement activities and indirectly by guiding the City's urban form from concept to construction.

Renovation of the 100-year-old Anderson
Hotel building will occur in 2023-24,
providing 68 low and very-low income
housing units and ensuring historical
preservation of this signature Downtown
housing project.

Financial Plan Page 167

Operating Budget Community Development
The Department at a glance
1 With the consolidation of policies by the Community Development Department and the Finance Department, plan check services will be fully budgeted at the beginning of the year instead of adjusting the budget as revenue is received. These services are 100% cost recovered, and the administrative change has no fiscal impact to the budget. (See SOBC #7 in the following section).
2 During the Supplemental budget process, the Community Development Department transferred Human Relations and Grants-in-aid budget lines to the Administration Office of Diversity, Equity, and Inclusion (DEI).

Staffing
71%
Contract
Services
15%
14%
Chart A-43: EXPENDITURES BY FUNCTION
Other Operating Costs
Program 2021-22
Actuals
2022-23
Budget
2023-24
Budget
2024-25
Budget
Building and Safety $3,235,392 $2,133,870 $3,085,371 $3,106,867 Commissions and Committees $13,508 $34,948 $37,240 $37,240 Community Dev Admin $902,888 $968,991 $954,447 $991,111 Engineering $751,455 $839,745 $989,596 $1,035,7591
Housing Policy and Programs $1,017,132 $950,332 $1,203,675 $1,175,706 Human Relations2 $63,055 $0 $0 $0
Planning $1,827,448 $1,855,172 $1,942,382 $2,163,464
Community Development Total $7,810,879 $6,783,059 $8,212,711 $8,510,146 Table A-42:

Financial Plan Page 168

Operating Budget Community Development
Chart A-44: Department Organizational Chart3
3 Does not include supplemental or contract positions.

Community
Development
(40.00 FTE)
Administration
Community
Development
Administration
(5.00 FTE)
Commissions &
Committees
Planning
(9.00 FTE)
Housing
(5.00 FTE)
Engineering
(6.00 FTE)
Building & Safety
(15.00 FTE)
Financial Plan Page 169

Operating Budget Community Development
Table A-45: Operating Budget Changes
SOBC Description Type 2023-24 2024-25
1 Below Market Rate
Administrator
(Consultant
Services)
Originally approved as one-time consultant funding
in the 2021-23 Financial Plan, this consultant
contract is necessary for the overall management
and administration of the City’s inclusionary
Housing Inventory, including ownership units,
rentals, and financing. Over the past several years,
the City’s inclusionary Housing Inventory has grown
substantially. Staff does not have the necessary
training, expertise, capacity, or resources to
effectively accomplish the management and
administration of this effort moving forward. In
addition, having an Administrator serves DEI goals
by ensuring that everyone in the region has equal
access to affordable housing units available through
the program.

One-time $150,000 $150,000
2 Historic Resources
Inventory* (MCG

1.4g)
MCG Task 3.2.b - Initiate implementation of the
consultant recommended phased approach to
update the City's historic resources inventory.

One-time $100,000 $150,000
3 Hotel Voucher
Program - CAPSLO*
(MCG 3.2a)
MCG Task 3.2.a - Funding for a hotel voucher
program that CAPSLO would offer unhoused
individuals if they cannot offer a bed to ensure a
bridge for temporary emergency shelter.

One-time $25,000 $0
4 IT Project
Management
Services
IT is hiring a project manager who will be trained
and developed to support CDD and Energov
projects, however, during the transition period CDD
will continue to fund use of Tony Rice to perform as
a contractor in this capacity as projects, such as ereview, are developed and move forward to implementation. (Potential for funding to be
allocated from IT Surcharge on building permits.)
One-time $104,000 $0
5 Margarita Area
Specific Plan
Update*
MCG Task 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.

One-time $100,000 $200,000
6 Safe Parking
(Location TBD)*
(MCG 3.2d)
MCG Task 3.2.d - Develop sustainable safe parking
programs
One-time $30,000 $0
Financial Plan Page 170

Operating Budget Community Development
SOBC Description Type 2023-24 2024-25
7 Plan Review Policy
Change (65% of
revenue
projection)
CDD and Finance will be consolidating the Building
Permit Plan Check and Development Services
Designation Policies based on several years of
experience operating with both policies in place.

CDD is recommending that its budget and
Development Services Revenue Forecast include the
full cost of plan check services that are contracted
out to consultants. This will enable the Building and
Safety Division to better manage resources when
assigning plan check work to staff and consultants.

The Development Services Designation will go away,
but if workload spikes, the policy would enable the
Finance Director to BAR current revenue to CDD's
budget to cover associated costs (consultants are
under contract for plan check services at 65% of the
fee collected by the City from applicants, ensuring
100% cost recovery for the City).

Ongoing $0 $0
TOTAL $509,000 $500,000
Financial Plan Page 171

Operating Budget Community Development
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)
Lead the implementation of the Housing and Homelessness Major City Goal Support the implementation of the Climate Action and Economic Recovery Major City Goals
Provide excellent customer service to internal and external customers and advisory body members in the processing of permit applications Ensure a safe community through the implementation of Building and Safety Division programs, including Code Enforcement
Monitor growth and support and update General Plan policies and Zoning Regulations standards to ensure coordination with all City Departments that provide municipal services for the community.

Economic Stability Housing Climate Action DEI Other Department Objectives Financial Plan Page 172

Operating Budget Community Development
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
Actual
2023-24
Target
2024-25
Target
Affordable housing
production
Strategic Goal:

Housing
Number of affordable housing units
secured through entitlements or
construction
115 147 50 50
Provide Excellent Customer
Service
Strategic Goal:

Other Department
Objectives
Customer survey response positivity
rate
88% 79% 85% 85%
Ensure a Safe Community
Strategic Goal:

Housing
Percent of Code Enforcement cases
investigated on-time: First Tier - 24
Hours, Second
Tier - 2 Days, and Third Tier - 3-5 Days
80% 79% 85% 85%
Development Review
activities
Strategic Goal:

Other Department
Objectives
The target goal of meeting cycle times
75% of the time reflects an increase in
more complex and
resource intensive development
review activities.
85% 75% 75% 75%
Building Permit Review
activities
Strategic Goal:

Economic Stability
Percent of building permit reviews
completed within established cycle
times
NA NA 85% 85%
Table A-46:

Financial Plan Page 173

Operating Budget Community Development Admin
General Fund
Community Development Administration
Program Description
The Community Development Administration program provides management and support for the Planning, Housing Policy and Programs, Engineering, and Building & Safety divisions of the Community Development Department. The department also supports the work of the City Council through its recommendations. It provides liaison services to the Planning Commission, Architectural Review Commission, Cultural Heritage Committee, and the Construction Board of Appeals. The program goals are:
1) providing effective and efficient management and support for other operating divisions; 2) establishing customer service and performance management standards for the Community Development Department; 3) coordinating priorities and tasks with other City departments; 4) establishing and maintaining complete and accurate records of staff and advisory body actions; and 5) providing prompt, courteous and accurate responses to request for public information.

Core Services & Objectives
 Community Development Department leadership, management, and organizational development  Database and records management, including citywide addressing; public information support services
 Building inspection scheduling coordination
 Front counter cashiering/revenue collection
 Housing and Climate Action Major City Goals
 Implement proactive public engagement tools for projects  Identify and support ideas for continued improvement and development within the Community Development Department
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $742,061 $653,411 $716,087 10% $752,751 5%
Contract Services $38,918 $93,600 $3,600 -96% $3,600 0% Other Operating Costs $121,910 $221,980 $234,760 6% $234,760 0% Community Dev Admin
Total $902,888 $968,991 $954,447 -2% $991,111 4%
Table A-47:

Financial Plan Page 174

Operating Budget Community Development Admin
General Fund
Major City Goal Contributions
The Administrative division supports maintaining complete and accurate records of staff and advisory body actions and helps with administrative support and reporting requirements for major city goals related to housing (including homelessness) and economic stability.

Opportunities and Challenges
Software and online tools are becoming increasingly crucial to our efficiencies and efficacy in supporting the engagement of CDD with its customers. The implementation and use of online payments and online scheduling of building inspections by customers will reduce the volume of in person meetings and calls staff receives. The continued implementation and expansion of online services will allow the applicant to review plans and inspection notes online rather than calling CDD. Reducing call volume will translate to increased time to support other division’s major city goal objectives by the Administrative division staff.

The division will see the onboarding of a new Department Head to CDD, and that will take significant time and effort, internal and external to the Department.

Financial Plan Page 175

Operating Budget Commissions & Committees
General Fund
Commissions & Committees
Program Description
Two commissions, one committee, and an appeal board advise the Community Development Director and City Council on planning, building, and historic preservation issues. Community Development Department staff serve as the liaisons to four commissions and committees.

Core Services & Objectives
 Planning Commission (PC). Implement General Plan, Zoning Regulation, Subdivision Regulation, and Community Design Guideline goals, policies, objectives, and standards in plan and project reviews.
 Architectural Review Commission (ARC). Implement the Community Design Guidelines in plan and project reviews.
 Cultural Heritage Committee (CHC). Help identify and advise on suitable treatment for archaeological and historical resources.
 Construction Board of Appeals. Hear and decide appeals of orders, decisions, and determinations made by the Chief Building Official and serve as the Appeals Board for Disabled Access.  City Objectives. Protect, maintain, and enhance the social and economic values created by past and present investments in the community by requiring all future development to respect these traditions and require that all buildings and structures placed on the land respect the natural landforms and become a compatible part of the total community environment.  Long-Term Financial Stability. Maintain a sustainable City budget and level of services by focusing on infrastructure maintenance, new revenue sources, and prudent use of Local Revenue Measure Funds.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $11,915 $23,748 $26,040 10% $26,040 0%
Other Operating Costs $1,593 $11,200 $11,200 0% $11,200 0% Commissions and
Committees Total $13,508 $34,948 $37,240 7% $37,240 0%
Table A-48:

Financial Plan Page 176

Operating Budget Commissions & Committees
General Fund
Major City Goal Contributions
Commissions and Committees review and approve entitlements for housing projects, density bonuses, tract maps, conditional use permits, and affordable housing projects. The planning staff prepares and oversees reports that study the environmental effects of development projects and identify ways of avoiding environmental damage (CEQA). Staff attend meetings, prepare reports, and present development proposals to the Commissions and Committees to evaluate for consistency with the City's General Plan and all other applicable plans and regulations.

Opportunities and Challenges
Consistent with state legislation that requires streamlined review of housing development projects, the City has updated development review processes to reduce the number of public hearings required and increased thresholds that trigger various levels of development review. This change has resulted in fewer housing development projects requiring review by Commissions and Committees. In the 2023-25 Financial Plan period, the Cultural Heritage Committee will be working with staff and consultants to kick off an update to the City’s Historical Resources Inventory. The Planning Commission will be supporting staff by holding public hearings and providing input on long-range planning projects to increase housing production in the southern part of San Luis Obispo, through updates to the Margarita Area Specific Plan and Airport Area Specific Plan.

Financial Plan Page 177

Operating Budget Planning
General Fund
Planning
Program Description
The Planning Program assists the community with land use issues. It evaluates all development applications (including City-sponsored projects) relating to compliance with the City's General Plan, Zoning Regulations, Subdivision Standards, and other development regulations. Development review also maintains the City’s development regulations. Reviewing development proposals before allowing construction is a critical component of the City’s General Plan implementation strategy. New development must conform to goals and standards established for housing, economic development, and environmental protection. Program goals are to 1) assist in achieving desired development in conformance with established policies, guidelines, standards, and acceptable timeframes; 2) provide timely processing of applications consistent with State and Local laws and policies; 3) create and maintain enjoyable places to live, work, and visit; 4) improve resiliency and protect the public health, safety, and welfare, and 5) create high public awareness of decisions on planning and environmental issues.

Core Services & Objectives
 Residential Development. Support the City’s Housing Program objectives, specifically, facilitate the approval of housing developments for Margarita Area, Orcutt Area, San Luis Ranch, Avila Ranch, Froom Ranch, and other sites identifies in the Housing Element and other key infill sites.  Commercial Development. Support the City’s Economic Development Program objectives by facilitating approval of mixed-use projects and businesses which bring head-of-household jobs to the community.
 Process Improvements. The Department continues to focus on waysto improve its processes. For example, CDD is implementing E-Review, an entirely paperless process for the City’s processes, including planning applications, subdivision maps, public improvement plans and building permits.
 Performance Measures. Continue to monitor a comprehensive performance management system to track the efficiency and effectiveness of permit reviews.

Financial Plan Page 178

Operating Budget Planning
General Fund
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,475,720 $1,423,301 $1,482,837 4% $1,549,479 4% Contract Services $344,254 $396,671 $431,345 9% $585,785 36% Other Operating Costs $7,474 $35,200 $28,200 -20% $28,200 0% Planning Total $1,827,448 $1,855,172 $1,942,382 5% $2,163,464 11% Major City Goal Contributions
The Planning division reviews plan submittals and works to increase the production of housing options for all income groups in the community. This includes working with developers, commissions, and committees to align projects with City housing goals and objectives.

Opportunities and Challenges
Opportunities to implement features of our permitting software, Energov, is becoming increasingly crucial to our ability to serve internal and external customers. Software that allows customers to submit plans online will also allow customers to see project status in real-time. A major opportunity for housing production occurred with the County’s update to the Airport Land Use Plan. Over the next two years, the Department will be working on plan changes to the Airport Area and Margarita Area specific plans to encourage more housing production. These plan changes will support future efforts to create both market rate housing and affordable housing. Significant infrastructure needs in the southern part of the City will continue to present a challenge as inflation, high interest rates, and other factors make it difficult for development to absorb these costs. Finally, the Community Development Department will be accepting the transfer of a City Arborist position from Public Works. The position will advise the Community Development Director on the disposition of trees as part of new development projects and will continue to support the Tree Committee.

Table A-49:

Financial Plan Page 179

Operating Budget Engineering
General Fund
Engineering
Program Description
The Engineering Program oversees the design and construction of various public works projects built by private developers for city ownership. These projects typically include additions to the City's water, wastewater, recycled water storm drain, street, flood protections, and park systems. This program is also responsible for reviewing the design of commercial, industrial, and residential private development projects for compliance with the Grading Ordinance, Parking & Driveway Standards, site development, and drainage designs.

This program is responsible for verifying plan compliance with Waterway Management Plan Drainage Design Manual and the adopted Post Construction Stormwater Regulations promulgated by the Regional Water Quality Control Board for all private development projects. To ensure public safety, this program also grants permission for various uses of public right-of-way and issues permits accordingly. The program represents the City as Floodplain Manager and prepares regular responses and reports to Federal Emergency Management Agency (FEMA) and the public in this regard. The program reviews development projects for compliance with the Tree Regulations and coordinates with the City Arborist on tree removals, tree plantings, and tree preservations requirements. The program’s goal is to ensure compliance with the City's Engineering Standards, Community Stormwater Regulations and to provide for the construction of safe, effective, and efficient public works which meet established engineering standards and specifications.

Core Services & Objectives
 Development Review. Reviewing parcel maps, subdivision maps, and subdivision construction plans as required by the Subdivision Map Act; reviewing submittals for private building and development project plans for compliance with standards; reviewing Planning Applications for the establishment of Mitigation Measures, Conditions, and code requirements.  Encroachment Permit Review/Issuance. Process all encroachments into the public right-of-way, including private constructions, construction staging, pedestrian and traffic control plans, utility installation and repair, news racks, and outdoor dining facilities. Coordinate with the Public Works Department inspectors regarding plan requirements, project conditions, compliance with City Engineering Standards, and permit conditions. Monitoring Truck routes and issuing wide-load transportation/trucking permits.
 Recordkeeping. Preparing and filing record drawings of private and public works construction; preparing legal descriptions for property transactions; preparing abandonment, easement, and covenant requests. Document all construction activities, reports, and filings related to the Floodplain Management Regulations.
 Miscellaneous Projects. Coordinating various engineering activities, enforcing FEMA standards intended to reduce damage caused by flooding; implementations of National Pollution Discharge Elimination System (NPDES) initiatives. Implementation of the stormwater ordinance and postconstruction guidelines being prepared by other departments or divisions. Participation in Financial Plan Page 180

Operating Budget Engineering
General Fund
neighborhood wellness efforts related to sidewalk upgrades, tree plantings, and undergrounding of overhead wiring. Downtown vitality efforts relate to private development projects and the enforcement of our news rack ordinance.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $725,202 $769,245 $919,096 19% $965,259 5%
Contract Services $19,872 $57,000 $57,000 0% $57,000 0% Other Operating Costs $6,381 $13,500 $13,500 0% $13,500 0% Engineering Total $751,455 $839,745 $989,596 18%4 $1,035,759 5% Major City Goal Contributions
The Engineering Division supports the Planning Division entitlement process, Building Division permitting process, and is the lead for processing subdivision maps and associated public improvement plans. The most significant housing development projects have required a subdivision map and related improvement plan approvals. As such, most of the work of the division supports housing. The division is involved in many in-fill housing projects, mixed-use projects, and commercial developments.

Opportunities and Challenges
The Engineering division assists other City departments, divisions, and the development community in the collaborative contribution to our Major City Goals. The division continues to endeavor to meet established process cycle times, provide timely encroachment permits, and coordinate with other stakeholders, including the Downtown Association, on permits within the downtown core. The challenges include the onboarding of new staff, development review process, and “lumpy” applications (large projects that are processed over significant periods of time). Keeping up with the workload in a timely manner will continue to be a challenge. In addition, significant staffing changes in the Division will present opportunities and challenges: the opportunities come with a new Engineer I-III resource recently added into the division (inter-department transfer from Planning with no fiscal impact), and the challenges are associated with the retirement of a 35-year employee who had lots of institutional knowledge about the City’s standards and best practices.
4 During the 2022-23 Fiscal Year, Community Development received approval to transfer a vacant position from the Planning Division to the Engineering Division to address workload.

Table A-50:

Financial Plan Page 181

Operating Budget Engineering
General Fund
The Engineering Division supports the Planning Division entitlement process, Building Division permitting process, and is the lead for processing subdivision maps and subdivision improvement plans. The most significant housing development projects require a subdivision map and related improvement plan approvals. As such, most of the work of the division supports housing. The housing and construction industry supports the economy and jobs and is a vital component of the community.

Financial Plan Page 182

Operating Budget Building and Safety
General Fund
Building and Safety
Program Description
The Building and Safety Division implements the adopted construction codes and other state and local laws that regulate building construction, use, and maintenance, including disabled access regulations, and the California Building, Residential, Electrical, Plumbing, Mechanical, Energy, and Green Building Codes.

The program operates a public permit counter responsible for the processing and coordinating construction applications which are reviewed by other departments, including Public Works, Planning, Utilities, and Fire, as well as external agencies such as County Environmental Health and the Air Pollution Control District. Building & Safety is responsible for the calculation and collection of all fees at the time of construction permit issuance. The program also includes a major focus on Neighborhood Wellness and code enforcement to address blight and public nuisances to preserve the community's aesthetics, health and safety, property values, and the quality of life for city residents. Overall program goals are a safe, accessible, and energy-efficient build environment that is compliant with all applicable construction regulations.

Core Services & Objectives
 Community Health and Safety. Building inspectors ensure new and remodel construction adheres to state and local laws for building, electrical, mechanical, and plumbing codes. Ensure new development is constructed in accordance with the highest standards of safety and existing structures are maintained in safe condition.
 Permitting Center. Receive and review building permit applications for completeness. Route to required departments for review. Ensure efficient and timely plan review. Coordination and collection of building permit fees and impact fees. Permit issuance.  Plan Review. In-house pre-application review process for applicants that have complex & mixeduse projects for code compliance as well as for other applicants seeking advice and coordinate with other divisions as needed.
 Neighborhood Preservation. Promote and preserve neighborhood wellness by coordinating proactive code enforcement activities and timely compliance with a variety of regulatory programs city wide.
 Code Enforcement. Investigate potential building code and land use violations in response to complaints. Enforce fire and life safety codes on public and private property.

Financial Plan Page 183

Operating Budget Building and Safety
General Fund
Contract Services $653,308 $35,000 $244,000 597% $140,000 -43% Other Operating
Costs $807,220 $83,174 $847,347 919% $885,706 5%
Program Total $3,235,392 $2,133,870 $3,085,371 45% $3,106,867 1% Major City Goal Contributions
The Building and Safety division reviews initial plan submittals and issues permits for all development in the City, including affordable housing projects and solar permits. The program also manages and tracks the Clean Energy Choice Reach Code from the beginning to end of a permit application.

Opportunities and Challenges
With the addition of two full-time Building Permit Technicians, faster processing times and opportunities to generate additional revenue from permit processing will be realized. Vacancies in the Code Enforcement group will reduce the amount of pro-active code enforcement that can be conducted until the positions are filled.
5 During times of high workload or when there are vacancies, transfers from the Development Services Designation and salary savings are routinely used for contract services to augment staff and maintain expected levels of services.

This explains the high actuals for FY 2021-22. FY 2023-24 includes an SOBC for IT project management services, causing a variance in that year.
6 With the consolidation of policies by the Community Development Department and the Finance Department, plan check services will be fully budgeted at the beginning of the year instead of adjusting the budget as revenue is received. These services are 100% cost recovered, and the administrative change has no fiscal impact to the budget. (See SOBC #7 in the following section).

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,774,865 $2,015,696 $1,994,024 -1% $2,081,161 4% Table A-51:
5 6
Financial Plan Page 184

Operating Budget Housing Policy & Programs
General Fund
Housing Policy & Programs
Program Description
This section of the Planning Division includes the management, administration, and implementation of the City’s Housing Element, Inclusionary Housing Program, and federal, state, and local grant and loans administration. Staff in this program also oversee the streamlined coordination of the City’s Homelessness Response efforts. Housing program activities include: aggressively seeking grants; issuance of low-interest loans; development of public-private housing partnerships, and other types of affordable housing assistance; monitoring and supporting new and existing deed-restrictions on units in the City’s Below Market Rate (BMR) portfolio; coordinating on housing programs with public and private agencies; evaluating non-identified infill areas for new residential developments; managing the Community Development Block Grant (CDBG), Affordable Housing Fund (AHF), and Grants-in-Aid (GIA) program; offering technical assistance to other departments; and preparing federal environmental documents associated with housing financing applications. Additionally, the Housing Policy & Program section provides funding assistance, policy recommendations, and outreach support to help meet the housing needs of unhoused individuals in San Luis Obispo. The goals of these programs are to: 1) Achieve the City’s housing goals set forth in the General Plan; 2) Collaborate with regional partners to develop and support emergency shelter and interim and permanent housing programs that meet immediate housing needs of unhoused individuals; 3) serve as a liaison to the community and Council, regarding homelessness issues and initiatives; and 4) monitor and inform the Council, Advisory Bodies, and the community on policies, programs, achievements, and areas for improvement for the City’s housing and homelessness efforts.

Core Services & Objectives
 Housing Programs Coordination. Coordinate with housing developers to facilitate the production of housing, particularly all forms of affordable housing; Including the development of partnerships (when appropriate) to expand prevalence of applications for grant and other housing-related financing and funding programs; BMR portfolio administration and monitoring; grant and City financing program administration and monitoring (i.e. CDBG, AHF); annual housing reporting (i.e. DOF, APR); and Housing Element Program implementation.  Housing Element Implementation. Implement Housing Element policies and programs; facilitate development of missing-middle affordable, supportive, and transitional housing options; assist with identifying gaps and financial support for needed infrastructure within associated housing developments.
 Homeless Services Coordination. Coordinate City’s Homelessness Response efforts among various key staff from City Departments in accordance with the Homelessness Response Strategic Plan; initiate and participate in regional collaboration efforts and seek out grant opportunities to support regional solutions to prevent and address homelessness; support the Mobile Crisis Unit (MCU) and Community Action Team (CAT) in conducting outreach to the chronically homeless population; and continue to expand support and funding for non-profit social service providers that specialize in housing and homeless services to connect unhoused individuals with services and housing.

Financial Plan Page 185

Operating Budget Housing Policy & Programs
General Fund
 Homeless Services Support. Overall administration and management of annual financial assistance to Community Action Partnership of SLO County (CAPSLO) for ongoing operations and associated programs for the 40 Prado Homeless Services Center and other homeless service providers funded through grant opportunities.
 Grant and Loan Administration and Management. Overall program administration and management of the City’s various grant and loan programs, including the Community Development Block Grant (CDBG), Grants-in-Aid (GIA), LEAP, REAP, SB2, SLFRF, Affordable Housing Fund (AHF), and if applicable Encampment Resolution Funding and Homekey Grants.  Low Income Water and Sewer Customer Subsidy, Fee waivers, and clean energy programs.

Coordinate with Utilities and Finance Departments to continue providing reduced rates for lowincome utility customers.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $464,219 $602,506 $715,849 19% $742,880 4%
Contract Services $549,187 $337,826 $472,826 40% $417,826 -12% Other Operating Costs $3,727 $10,000 $15,000 50% $15,000 0% Program Total $1,017,132 $950,332 $1,203,675 27%7 $1,175,706 -2% Major City Goal Contributions
The implementation of the City’s Housing Element and Homelessness Response Strategic Plan are key major city goal work efforts.

Opportunities and Challenges
The Housing Policy and Programs division has a specific focus on housing opportunities, production, affordability and advocating for resources and implementation of the strategic plan related to homelessness. This includes the Housing Policies & Programs Manager, Housing Coordinator, Homelessness Response Manager, and an Assistant Planner to aid in taking a collective approach to the City’s housing and homelessness needs. The group also includes an Administrative Specialist to support our homelessness response, and staff is working to hire for that role. Ongoing changes to State Legislation related to Housing and Land Use policies may require periodic amendment and/or updates to housing policies and programs. Regional capacity for homeless services and housing also present challenges, which the City is actively working to address, in collaboration with the County and regional partners. 7 During FY 2022-23, Community Development received approval for an Administrative Specialist, Homelessness Response position to support the work of the Homelessness Response Manager. The overall increase can also be attributed by two SOBCs for contract services from CAPSLO, allocated in FY 2023-24.

Table A-52:

Financial Plan Page 186

Operating Budget Parks and Recreation

PARKS AND RECREATION
Mission Statement
Inspiring happiness by creating community through people, parks, programs, and open spaces.

About the Department
The Parks and Recreation Department is committed to providing quality parks and facilities (such as the SLO Swim Center, Damon-Garcia Sports Complex, and Laguna Lake Golf Course) where recreation programs, special events, activities for youth and seniors, and cultural and educational opportunities occur in an effort to encourage wellness and develop community through leisure, cultural, and social pursuits. The Department also protects and preserves the City’s natural resources and open spaces and manages the Citywide Volunteer Program. Parks and Recreation has returned to pre-pandemic program offerings with increased focus on community building as highlighted in the Parks and Recreation Blueprint for the Future (General Plan Parks and Recreation Element).

The Parks and Recreation budget is predominately comprised of staffing costs. In addition to the annual full-time Parks and Recreation employees, the Department relies heavily on supplemental employees who provide service to the community year-round. Depending on the season, the Department may have 150 to 200 supplemental employees providing services such as lifeguarding and instructional swim lessons, providing afterschool childcare, hosting special events and pop-up community events, providing open space enforcement, promoting all the department activities and classes through social media, and more.

Financial Plan Page 187

Operating Budget Parks and Recreation
The Department at a Glance
1 Includes $10,500 operating budget for the Jack House each year.

Staffing
83%
Contract Services
5%
Other Operating Costs
12%
Chart A-54: EXPENDITURES BY FUNCTION
Program 2021-22
Actuals
2022-23
Budget
2023-24
Budget
2024-25
Budget
Aquatics $568,014 $633,304 $605,083 $613,667
Community Services1 $517,833 $667,882 $707,091 $737,047 Golf Course $831,862 $738,756 $806,211 $824,790
Ranger Service $803,371 $826,321 $898,725 $933,275
Recreation Admin $872,934 $770,190 $919,788 $958,721
Recreation Facilities $299,765 $325,907 $355,639 $363,272 Youth Services $1,228,850 $1,288,694 $1,413,794 $1,469,226 Parks and Recreation Total $5,122,628 $5,251,052 $5,706,331 $5,899,998 Table A-53:

Financial Plan Page 188

Operating Budget Parks and Recreation
Chart A-55: Department Organizational Chart2
2 Does not include supplemental or contract positions.

Parks &
Recreation
(30.00 FTE)
Recreation
Administration
(4.00 FTE)
Facilities
(1.00 FTE)
Youth Services
(8.00 FTE)
Community
Services
(4.00 FTE)
Rangers
(8.00 FTE)
Aquatics
(1.00 FTE)
Golf Course
(4.00 FTE)
Financial Plan Page 189

Operating Budget Parks and Recreation
Table A-56: Operating Budget Changes
SOBC Description Type 2023-24 2024-25
1 New Contract -
Recreation
Coordinator
(Public Art)
Due to the increased need to support Public Art as a
major city goal, additional staff support is needed.

The role and oversight of public art has outgrown
the capacity to be a portion of the role of the
Recreation Manager. Assessment of the two-year
contract with SLOMA to try and ease the demand of
the public art program has identified that more
administrative and operational oversight is needed
in the role of a program coordinator to support the
Manager. With the impacts of the increased public
art focus and quantity of new projects, a position is
needed to support the increased demand for
installations, back-logged maintenance,
programming and activating of public space through
public art, support of private development and
voluntary art and evaluations of current policies and
procedures for efficiency. The role would
encompass public art administration and
programming, taking on the operational elements
of the role. Reporting to the Recreation Manager
(Public Art Program) who maintains the strategic,
big picture, budgetary, and partner/liaison
components.

One-time $90,550 $89,950
2 Volunteer
Program Budget
As the Volunteer Coordinator has started with the
organization in FY23, this request is to establish the
operating budget that will support and institute the
Volunteer program including training, software,
equipment and supplies.

Ongoing $26,525 $24,775
3 Youth Programs
Scholarship Funds
(MCG 2.8d)
This request is tied to a Major City Goal and would
provide financial assistance to qualified families
through City funded scholarships for youth related
programs such as: before/after-school childcare,
spring break & summer camps, swim lessons, and
after-school sport programs.

Ongoing $20,000 $25,000
TOTAL $137,075 $139,725
Financial Plan Page 190

Operating Budget Parks and Recreation
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 related to the Blueprint for the Future, and other priorities as they may arise. These goals are in addition to ongoing core community program services (listed in program sub-sections).

Strategic Goal(s)
Continue to activate parks and public spaces with an emphasis on neighborhoods and downtown through pop-up events and public art that promote inclusivity, provides cultural unity, develops a sense of community and supports healthy lifestyles.

Activate the Parks and Recreation Blueprint for the Future and initiate public engagement for prioritization of projects, focused on meeting amenity needs identified by the City-wide inventory assessment and specific to City subareas, that also factor in to help achieve carbon neutrality, inclusivity and accessibility.

In coordination with the Office of Natural Resources, continue to develop the new networks of Open Space Trails at Righetti Hill and Miossi preserve while maintaining the current 4,000+ acres of Open Space and trail system. Continued focus on fire fuel reduction and creek and flood control in support of the Wildland Urban Interface (WUI).

Continue to provide quality childcare to the community to support economic recovery through regional partnerships to enhance and expand equitable childcare offerings to the community.

Financial Plan Page 191

Operating Budget Parks and Recreation
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
Actual
2023-24
Target
2024-25
Target
Provide inclusive, accessible
programming that serves the
whole community.

Strategic Goal: Programming is
Directed to Diverse Users (P&R
Strategic Plan Goal), DEI and
Economic Vitality MCGs
# of Department
Community Events 13 22 25 25
# of non-profit permitted
Facility Uses 92 100 120 120
# of program registrations 4,866 4,575 4,500 4,500
# of program offerings 584 410 400 450
# of childcare spots
filled/offered 1131/1131 2000/2000 1500/1500 1500/1500
# of children receiving
subsidy
61 CAPSLO
45 City
scholarship
70 CAPSLO
35 City
scholarship
60 CAPSLO
50 City
scholarship
60 CAPSLO
50 City
scholarship
In Coordination with Public
Works, engage the public to
prioritize new and revitalized
Recreational Amenities
Strategic Goal: Expand Parks &
Facilities (P&R Strategic Plan
Goal), MCG Economic Stability
# of public outreach
meetings 3 4 6 6
# of updated or new parks
and amenities in process 4 5 5 5
Creates and fosters a sense of
community through citizen
involvement
Strategic Goal: Maximize
Community Resources &
Collaborations (P&R Strategic
Plan Goal)
# of volunteers/hours 79/1495hrs 164/1935hrs 380/4100hrs 480/5800hrs # of temporary Public Art
or Cultural Art Events 4 4 5 5
Leverage technology to engage
the community and promote
program offerings
Strategic Goal: Programming is
Directed to Diverse Users (P&R
Strategic Plan Goal)
# of Instagram followers 6,295 7,000 7,800 8,700
# of Facebook followers 3,920 4,500 5,000 5,600
Open Space Preservation and
Enhancement
Strategic Goal: Nurture Open
Space (P&R Strategic Plan Goal),
Climate Action MCG
# of miles of Open Space
trails maintained 62 65.5 66.5 68
# of staff hours dedicated
to fuel reduction 1,687 3,300 4,000 4,000
# of encampment site
clean-ups removed from
Open Spaces
85 90 110 120
Table A-57:

Financial Plan Page 192

Operating Budget
General Fund Recreation Administration
Recreation Administration
Program Description
The Recreation Administration Program plans for new improvements to existing parks and recreation facilities, applies for, and administers grant programs, and researches industry trends and best practices.

It provides clerical assistance department-wide, including the hiring of supplemental staff, and manages the overall department budget. Staff provides support to the Parks and Recreation Commission, an advisory body, and manages the Public Art program and City-wide Volunteer program.

Core Services & Objectives
 Department Administration and Leadership
 Supplemental staff recruitment and onboarding
 Oversees Department and Division budgets for financial sustainability and accountability  Oversees Registration Software and program registration  Provides customer service to the public associated with Department programming  Support and facilitation of Parks and Recreation Commission, Public Art Program implementation, Public Art Fund and policy development
 Recreational Capital Improvement Project Management in alignment with the Parks and Recreation Plan and Element of the General Plan
 Management of Parkland and Public Art Impact Fee Funds  Marketing and Community Engagement surrounding Recreational programming and construction of recreational facilities
 Implement and/or plan for the Parks and Recreation Department Strategic Plan  Management and coordination of City-wide Volunteer Program Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $784,677 $673,135 $831,658 24% $872,691 5%
Contract Services $28,986 $15,255 $11,700 -23% $10,100 -14% Other Operating Costs $59,270 $81,800 $76,430 -7% $75,930 -1% Recreation Admin Total $872,934 $770,190 $919,788 19% $958,721 4% 3 Includes an SOBC for a new Public Art Coordinator position (1.00 FTE).

Table A-58:
3 Financial Plan Page 193

Operating Budget
General Fund Recreation Administration
Recreation Administration supports the Economic Recovery Goal and the Diversity, Equity, and Inclusion goal through supporting Arts and Culture, providing scholarship opportunities for program registrations, and assisting in Downtown Vitality efforts.

Opportunities and Challenges
The Department is focused on community outreach and planning for a variety of new and improved recreational amenities and providing the core services outlined in the major goals and objectives of the Parks and Recreation Blueprint for the Future. Several park projects are currently in development, including the new North Broad Street Neighborhood Park, Laguna Lake Dog Park, upgrades to Emerson Park, Cheng Park and Mitchell Park. The Righetti Ranch Parks Project has started its planning and design phase, and Mission Plaza is set to receive major upgrades to its restroom facilities and seating areas.

Playground equipment upgrades are also scheduled for DeVaul Park and Vista Lago Park.

Other Key Points
As the City's Public Art Program grows, the Department has identified the need and submitted an SOBC to add a Public Art Coordinator position to coordinate the day-to-day operational needs of this vibrant program, as the Recreation Manager continues to oversee strategic direction and partnerships in support of the Public Art Program. Similarly, with the significant increase in requests and inquiries for volunteer services to support the community and City services, in FY 2023, the Department hired a Volunteer Coordinator to launch and manage a centralized, City-wide volunteer program. The Volunteer Coordinator is tasked with the marketing, recruitment, tracking of hours, risk management, recognition events, and globalized program area support. There is an SOBC request to provide a modest increase in program and software budget items for this Coordinator to support and engage with volunteers.

Major City Goal Contributions
Financial Plan Page 194

Operating Budget
General Fund Facilities
Facilities
Program Description
The Facilities Program manages, supervises, and schedules the use and maintenance of community recreation buildings and reserved park areas, and oversees the approval and issuance of facility rental permits, banner permits, external special events, and film permits. The department additionally supports the Downtown Dining Mission Plaza program through equipment set-up and staffing.

Core Services & Objectives
 Manage and coordinate the use of City indoor and outdoor facilities to optimize use and availability
 Manage the commemorative Bench Program and associated Donations  Coordination of external Special Event Agreements, Street Banner Reservations and Commercial Filming Permits
 Hire, recruit and train supplemental staff to facilitate use of City’s indoor and outdoor facilities Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $277,455 $271,892 $292,734 8% $300,367 3%
Contract Services $9,975 $35,100 $37,175 6% $37,175 0%
Other Operating Costs $12,335 $18,915 $25,730 36% $25,730 0% Recreation Facilities Total $299,765 $325,907 $355,639 9% $363,272 2% Major City Goal Contributions
Facilities supports the Economic Recovery Major City Goal and Downtown Vitality by providing resources to assist with OpenSLO.

Opportunities and Challenges
As facilities resume reservations post-COVID, one challenge has been the promotion of the availability for community rentals for indoor facilities, which has lagged following the lifting of state and county health guidelines. Additionally, there has been an increase of internal City and County uses of the indoor facilities, which are not charged fees. Staff are developing a promotional campaign to showcase the variety of indoor facilities available for community rental. As a Fee Study moves forward, Facilities will be assessing the current agreements with associations and organizations with the potential to restructure fee rates for non-profit, for-profit, local, non-local, and competitive organizations. A focus will be evaluating the opportunity for additional tier pricing structures and appropriate fees to support the different rental classifications.

Table A-59:

Financial Plan Page 195

Operating Budget
General Fund Youth Services
Youth Services
Program Description
The Youth Services program provides licensed childcare during non-school academic periods (before and after school, spring break, teacher workdays, and throughout the summer) with a focus on healthy and positive development of children through anti-bias curriculum, STEAM based activities, social experiences, focus on inclusion, and opportunitiesthat promote learning, awareness of community, fitness and health, academic support and recreational play.

Core Services & Objectives
 Collaborate with SLCUSD to provide school age childcare programs on City school campuses and CAPSLO to provide subsidized care for qualifying families  Provide school age childcare through the State Community Care Licensing  Continue to assess and modify the current business practices to optimize the number of children receiving care (accommodating wait list) and accommodate the increasing number of children needing care due to changes in school schedules and increased TK programs in the school district
 Provide a variety of childcare programming during school closure times, including: before and after school childcare, summer camp, Spring Break Camps and Teacher Workday camps  Develop inclusive care programs with community partners to provide support for children with special needs (using agency partners and internal trained support staff)  Stay current on professional trends, both academic and developmental, and incorporate trainings and practices to ensure an environment that is diverse and inclusive  Recruit, onboard and retain quality staff through professional development opportunities and relevant workforce training
 Plan and implement curriculum which spotlights community partnerships, educational opportunities, guest speakers and local field trips, encouraging children to be lifelong learners and active community members
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,079,262 $1,142,924 $1,247,524 9% $1,292,526 4% Contract Services $22,574 $20,300 $47,800 135% $52,950 11% Other Operating Costs $127,014 $125,470 $118,470 -6% $123,750 4% Youth Services Total $1,228,850 $1,288,694 $1,413,794 10% $1,469,226 4% Table A-60:

Financial Plan Page 196

Operating Budget
General Fund Youth Services
Major City Goal Contributions
Youth Services supports the Economic Recovery Major City Goal through business support by providing childcare to the community to enable residents to return to work. In addition, the division supports the Diversity, Equity and Inclusion Major City Goal and workforce recruitment and retention by serving as a community partner involved in the SLO County Child Care Study (First 5’s analysis). The division will review, evaluate and implement findings from the study as resources permit. Additionally, it is expanding childcare scholarship opportunities for underserved families.

Opportunities and Challenges
All Youth Services programs are made possible with the efforts of up to 70 supplemental staff, ranging from entry level Childcare Aides to Child Care Head Teachers. Staff recruitment and retention challenges have created barriers in the ability to provide enough supplemental staff, to meet the needs of the program with a current roster which is down to about 50. Program capacity is limited by space available on the SLCUSD campuses to support the program. Additional challenges include the continued need to pivot program offerings to align with changing school district schedules and requests, which is also an opportunity to expand upon a strong partnership and meeting a community need. With the opportunity to access more space and staff resources, programs could be expanded.

Other Key Points
A recent update to the supplemental salary schedule in response to mandated minimum wage increases and subsequent compaction has led to an increase in supplemental staffing budget.

Financial Plan Page 197

Operating Budget
General Fund Community Services
Community Services4
Program Description
The Community Services Program hosts a variety of community-based events (community wide and neighborhood based), manages youth and adult athletic leagues, offers recreational and instructional activities and classes, manages the City’s community gardens, manages the skate park and senior center, and manages the Citywide Volunteer Program. The City continues to work collaboratively with local youth sports groups and San Luis Coastal Unified School District to meet the needs of the community.

Programming promotes community engagement, healthy lifestyles and social interactions. The division is also expanding childcare scholarship opportunities (sports camps and clinics) for underserved families.

Core Services & Objectives
 Continued partnership with Cal Poly Industry Experience Management Department students to develop and support innovative programming through student projects and internships  Host community-wide events and neighborhood events based on City subareas  Expand enrichment class offerings to the community
 Offer sports clinics and summer camps
 Coordinate youth and adult athletic leagues
 Develop and offer pilot recreational programs designed to support unmet community needs  Serve as liaison to the Jack House Docent program
 Coordinate and maintain community gardens
 Manage and provide safe programming of the Skate Park  Provide city-wide senior programming and serve as liaison to the Senior Center Board  Develop new marketing strategies for promotion of recreational sports and program offerings Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $358,387 $483,972 $496,111 3% $522,517 5%
Contract Services $87,460 $75,300 $81,100 8% $82,100 1% Other Operating Costs $71,986 $108,610 $129,880 20% $132,430 2% Community Services Total $517,833 $667,882 $707,091 6% $737,047 4% 4 Includes $10,500 operating budget for the Jack House each year.

Table A-70:

Financial Plan Page 198

Operating Budget
General Fund Community Services
Major City Goal Contributions
Community Services supports the Economic Recovery Goal through supporting Arts and Culture and assisting in Downtown Vitality efforts. Additionally, the Division supports the Diversity, Equity and Inclusion Goal through low and no-cost community programs, including park programs, free citysponsored events, and year-round senior programming.

Challenges and Opportunities
The need for community programming and providing low and no-cost programming year-round to the community, in alignment with the Blueprint for the Future, requires a large supplemental staff resource base. An ongoing shortage of supplemental and frontline staff can potentially limit the ability to facilitate youth and adult sports programming, and city-sponsored community events throughout the year, such as the September Scramble, Monday Meet-ups, Spring Fling, and the Rec is Rad park play series.

Other Key Points
Community Services employs many supplemental employees and the update to the supplemental salary schedule in response to mandated minimum wage increases and subsequent compaction has led to an increase in the supplemental staffing budget.

Financial Plan Page 199

Operating Budget
General Fund Ranger Service
Ranger Service
Program Description
The Ranger Service Program preserves and protects the natural resources in the City’s 13 different open space areas comprising of over 4,040 acres and 65 miles of trails with daily maintenance, construction, rehabilitation, mitigation projects, and patrol. Rangers conduct year-round environmental education programs and hikes and educate the community about how to help protect the City’s natural resources and open spaces.

Core Services & Objectives
 Complete installation of adopted trail systems in new Open Space acquisitions  Maintain the Open Space consistent with the adopted Open Space Maintenance Plan  Facilitate mitigation and fire fuel reduction projects in the City’s Open Spaces  Support and maintain protocols regarding debris removal of the City’s creek and riparian areas in compliance with the City’s Storm Water Program
 Conduct environmental education programs and hikes
 Support encampment clean-ups and facilitation between the unhoused community and the Homeless Response Manager and CAT program staff
 Remove trash and debris in the City’s Open Spaces and creeks Patrol open space areas ensuring compliance with the City Open Space Ordinances, the safety of users, and preservation of the natural environment
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $726,903 $757,541 $822,325 9% $856,875 4%
Contract Services $36,722 $42,400 $40,000 -6% $40,000 0% Other Operating Costs $39,747 $26,380 $36,400 38% $36,400 0% Ranger Service Total $803,371 $826,321 $898,725 9% $933,275 4% Major City Goal Contributions:

Ranger Services supports the Housing Major City Goal through supporting Environmental Protection and Water Quality and plays a key role in the Climate Action Major City Goal through the team’s work on Table A-71:

Financial Plan Page 200

Operating Budget
General Fund Ranger Service
preservation, maintenance and enhancement of City’s open space and urban forest, and the team’s planning and implementation for resilience.

Opportunities and Challenges
The increased usable open space acreage and trails require consistent oversight for maintenance and stewardship. Expanded environmental education programs such as weekly community topics, user etiquette videos, monthly educational hikes, and spring and summer break youth camps have increased the opportunity to educate the community on the surrounding open space amenities.

Other Key Points
Emphasis on fuel management and managing the Wildland Urban Interface (WUI) with other City departments and divisions (Natural Resources, Public Works, and Fire) have been a focal point for Ranger Service personnel and resources the past few years with the addition of supplemental Open Space Technician positions.

Financial Plan Page 201

Operating Budget
General Fund Aquatics
Aquatics
Program Description
The Aquatics Program provides a safe, well-maintained facility offering the community diverse aquatic activities designed to incorporate recreational swim, fitness, therapy, exercise, rehabilitation, skill development and socialization regardless of economic status, ability, fitness level or age. The aquatics program additionally provides well-trained and skilled staff to ensure patron safety and provides emergency response as needed.

Core Services & Objectives
 Provide instructional, lap, and recreational swimming programs  Provide a wide range of aerobic activities to meet a diverse population (therapy, exercise, etc.)
 Maintain a clean, accessible and safe facility as paramount to the prevention of incidents and injury at the SLO Swim Center
 Adjust programing to be creative and meet the needs of the community  Ensure all staff maintain California and American Red Cross certifications and attend monthly in-service trainings
 Provide water safety, educational and preventative events throughout the year Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $481,953 $546,505 $544,272 0% $549,549 1%
Contract Services $37,466 $39,299 $42,581 8% $45,888 8% Other Operating Costs $48,595 $47,500 $18,230 -62% $18,230 0% Aquatics Total $568,014 $633,304 $605,083 -4% $613,667 1% Opportunities and Challenges
There continues to be a significant nationwide and SLO County-wide certified lifeguard shortage. Staff recruitment and retention challenges have created barriers to having enough supplemental staff. To ensure proper safety coverage ratios, the SLO Swim Center has had to modify the facility’s public program hours throughout the year based upon staff availability. 5The increased cost in FY 23 for Other Operating Costs reflects a one-time, $30,000 SOBC for SLO Swim Center maintenance (lane lines, etc).

Table A-72:
5 Financial Plan Page 202

Operating Budget
General Fund Aquatics
Aquatic programming continues to be a very popular community interest with an increase in youth programs such as water polo and swim club programming. Additionally, the popularity of the warm-water pool for all age and abilities has shown an increase coming out of the pandemic restrictions.

Financial Plan Page 203

Operating Budget – General Fund Golf Course
Golf Course
Program Description
The Golf Course Program operates and maintains the Laguna Lake Golf Course as a 10-hole par three golf course, Pro-Shop, and driving range.

Core Services & Objectives
 Maintain and enhance the Laguna Lake Golf Course including equipment maintenance and irrigation repair
 Provide a comprehensive Pro-Shop operations and reliable customer service  Promote and provide equitable access for golf play and alternative golf related programming  Provide community-focused events to enhance the use of the facility  Identify environmental initiatives focused on creek preservation, water conservation, and longterm sustainability Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $520,468 $479,798 $509,984 6% $528,044 4%
Contract Services $19,386 $21,713 $23,991 10% $24,173 1% Other Operating Costs $292,008 $237,245 $272,236 15% $272,573 0% Golf Course Total $831,862 $738,756 $806,211 9% $824,790 2% Opportunities and Challenges
The Golf Course continues to operate out of a temporary pro-shop trailer due to the closure of the main pro-shop due to flooding. Remediation and repairs are projected to continue into June 2023. Due to antiquated infrastructure, on-going irrigation leaks monopolize staff time and take away from standard course maintenance. With this season experiencing consistent weather events impacting operational days for play and maintenance from January to March 2023, the Golf Course will be looking at alternative ways to increase revenue at the golf course.

The Golf Course will look towards additional promotional opportunities within local outlets and outreach to school sites (college and school district), fee increases, implementing a loyalty program, increasing the current lesson output by contracting with new instructors, promoting the course for special events, increasing tournaments, and reinstituting the night golf events after a three-year hiatus. The course is also considering combining golf rounds with golf cart rentals at an increased fee.

Other Key Points
In January 2023, a new concessionaire began operation at the golf course, providing golfers and the community on-site dining opportunities.
6This represents a $29,000 (29%) increase to Water Service budget, which accounts for the realistic cost of leaks caused by aging infrastructure.

Table A-73:
6 Financial Plan Page 204

Operating Budget
General Fund Public Works

PUBLIC WORKS
Mission Statement
Preserve and enhance city infrastructure for an accessible, safe, and inclusive community experience.

About the Department
The City of San Luis Obispo’s Public Works Department accomplishes its mission in two primary ways. One is by providing safe mobility options for residents and visitors so that all may enjoy the cultural, recreational, economic, educational, and quality of life amenities in San Luis Obispo. The other is to build and maintain the City’s assets and infrastructure to enhance community safety, health, and wellness.

None of the City’s assets are an end unto themselves but rather enable residents and visitors to experience an enhanced quality of life. The Department’s Vision: ‘Inspiring you to have the best day you have ever had,’ essentially means if we provide high quality mobility options and well-maintained infrastructure, then users can experience the full benefit of living, visiting, and working in San Luis Obispo.

The Department’s twelve programs each have a critical and unique role in fulfilling the Department’s mission. Most of the Department is funded by the General Fund, and two programs, Parking and Transit, are Enterprise Funds, funded by users of those services.

Financial Plan Page 205

Operating Budget
General Fund Public Works
The Department at a glance
1 Included in Utilities Section as this program is cross-departmental, but mainly managed in Utilities.

Staffing
62%
Contract
Services
12%
Other
Operating
Costs
26%
Chart A-75: EXPENDITURES BY FUNCTION
Program 2021-22
Actuals
2022-23
Budget
2023-24
Budget
2024-25
Budget
1 CIP Project Eng $2,664,647 $2,717,592 $2,887,864 $3,002,118 2 Facilities Maintenance $1,359,287 $1,375,065 $1,534,669 $1,548,295 3 Fleet $1,395,775 $1,395,387 $1,453,372 $1,485,298
4 Parks Maintenance $3,552,669 $3,478,283 $4,126,238 $4,318,912 5 Public Works Admin $1,069,343 $1,089,021 $1,454,917 $1,527,733 6 Stormwater and Flood Control1 $1,115,930 $1,083,704 $1,195,293 $1,227,164 7 Streets Maintenance $1,766,497 $2,423,871 $2,349,855 $2,416,058 8 Swim Center Maintenance $601,262 $595,198 $673,110 $688,515 9 Traffic Signals and Lighting $598,015 $535,973 $596,347 $602,390 10 Transportation Planning & Eng $1,123,041 $995,326 $1,078,014 $1,121,828 11 Urban Forest Services $334,499 $455,180 $368,367 $390,066 12 Public Works Total $15,580,965 $16,144,599 $17,718,046 $18,328,375 Table A-74:

Financial Plan Page 206

Public Works
Operating Budget
General Fund
Chart A-76: Department
Organizational Chart2
2 Does not include supplemental or contract positions.

Public Works
(73.84 FTE)
Administration
Public Works
Administration
(7.00 FTE)
Stormwater
(6.34 FTE)
Flood Control
(1.00 FTE)
Engineering &
Maintenance
Parks Maintenance
(12.00 FTE)
Swim Center
Maintenance
(1.00 FTE)
Urban Forest Services
(2.00 FTE)
Facilities
(5.00 FTE)
Street Maintenance
(12.00 FTE)
CIP Engineering
(15.00 FTE)
Transportation
Traffic Signals & Lighting
(2.00 FTE)
Fleet
(4.50 FTE)
Transportation Planning
& Engineering
(6.00 FTE)
Parking Program & Fund
(14.00 FTE)
Transit Program and Fund
(3.00 FTE)
Financial Plan Page 207

Public Works
Operating Budget
Table A-77: Operating Budget Changes
SOBC Description Type 2023-24 2024-25
1 Contract Mowing
Services at Parks
This funding will allow Parks Maintenance to
contract out mowing services for 6 facilities (Santa
Rosa, Mitchell, Emerson, Laguna Lake, Throop,
Meadow). This allows staff to prioritize work
related to fixing restrooms, lighting, graffiti
abatement, and landscaping. This request is a force
multiple in that it allows staff to focus on more
complicated maintenance work and contract out
lower-level functions.

One-time $100,000 $100,000
2 City Hall
Temporary
Restroom
Ongoing funding for portable toilet facilities in front of City Hall. The addition of this facility has resulted in less defecation and urinating issues in the
downtown, especially near City Hall. Cost for rental
is roughly $250 per month and the daily servicing of
the restroom is $50 per day. This budget allows for
servicing the restroom every other day.

Ongoing $12,000 $12,600
3 New Regular -
Urban Forester (1
FTE)
This new position would support the in-house Urban
Forest crew with emergency response, reactive
work orders, and young tree care.

Ongoing $96,690 $100,065
4 Utilities and
Janitorial Services
for New City
Buildings (HR and
1106 Walnut)
Funding to be used for ongoing janitorial services
and utilities costs at the new HR offices as well as a
building that the City plans to acquire in the coming
months.

Ongoing $89,125 $89,875
5 Exploration of a
Potential
Stormwater Utility
The Department of Finance et al v. Commission of
State Mandates (Super. Ct. No.
34201080000604CUWMGDS) court appeal has
created the possibility that Stormwater could
operate as an enterprise fund. These legal services
funds are preliminarily set aside to explore the
feasibility of this approach.

Midyear or supplemental asks will be considered as
the corresponding legal decisions are finalized.

One-time $10,000 $10,000
6 Annual MS4
permit fee -
SWRCB
Municipal Separate Stormwater Sewer System
(MS4) permits are regulatory driven and required by
the State Water Resource Control Board (SWRCB).

Previously not budget
Ongoing $18,000 $18,500
TOTAL $325,815 $331,040
Financial Plan Page 208

Operating Budget
General Fund Public Works
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)
Focus department’s attention to storm recovery, prioritizing repairs of storm damage that will both repair the City’s storm conveyance systems to pre-storm condition and maximize federal and state reimbursement of City funds. Continue focusing on Emergency Preparedness.

Invest in critical infrastructure with the focus of delivering legacy projects to the Community including the Cultural Arts District Parking Garage, the Mission Plaza Concept Plan Implementation, Prado Road Creek Bridge, Prado Road Interchange and the Public Safety Center replacement.

Provide core services to the Community with particular focus on Enhanced Downtown Maintenance and providing maintenance services for recently constructed development projects that are ready to be assumed into the City’s inventory for maintenance. Continue to use Ask SLO as a tool to respond to community needs.

Create a new division within the Public Works Department that will lead Parking, Transit, and Active Transportation with the goal of creating a cohesive team that will increase mobility within the City focusing on bridging gaps between transit, active transportation, and parking programs. Implement objectives from the Active Transportation Plan including trail, pedestrian, and bicycle improvements and street enhancements to uphold traffic safety.

Support and prioritize employee development and growth through investing in the time to train, develop, and onboard new and transitioning employees. Develop an implementation plan for the Employee Engagement Survey feedback that was received focusing on training and onboarding.

Financial Plan Page 209

Operating Budget
General Fund Public Works
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 Actual 2023-24 Target 2024-25 Target
Proactively enhances traffic safety by
providing a system of safe, reliable and
well-maintained roadways, sidewalks,
traffic signals and streetlights.

MCG: Climate Action
Strategic Goal: Enhance Safe & Efficient
Transportation (PW Strategic Plan)
Pavement Condition
Index 72 75 75 75
Bicycle network in
total miles (Class

I/II/III/IV)

12.1/29.3/
25/1.2

14.5/31.3/

25.3/1.

14.6/31.0/

25.1/2.8

14.6/28.6/

25.1/5.4
Street miles
maintained 134 134 135 137
Enhance the City’s Urban Forest and
maintains visually appealing public spaces.

MCG: Climate Action
Strategic Goal: Proactively Manage Assets
(PW Strategic Plan)
# of trees
maintained 12,9703 13,030 13,080 14,500
Total acreage of
park inventory 582 582 584
4 5965
Provide high quality services to the
community through efficient and effective
delivery of capital improvement projects
and management of the City’s
infrastructure.

MCG: Economic Recovery
Strategic Goal: Connect with our
Community (PW Strategic Plan)
Total value of CIP
Managed $21M $28M $97M $53.6M
3 The Urban Forest Services Program recently completed an audit of the Urban Forest in the Streets and Parks setting.

The urban forest number of managed trees has been aligned with maintenance program scope of service. Many trees in the City’s open space have been removed from the Urban Forest Services maintenance metrics as these trees are maintained by the Parks and Recreation Departments Ranger Services Program. 4 The 2023-24 park acreage inventory includes the addition of North Broad Street Park and Parks A, B, and C in Avila Ranch.
5 The 2024-25 park acreage total includes the anticipated completion of the community park within the Righetti Ranch development.

Table A-78
Financial Plan Page 210

Operating Budget Public Works Admin
General Fund Public Works
Public Works Administration
Program Description
The Public Works Administration Program helps plan and direct the twelve operating programs, the capital improvement program, and provides department-wide administrative and fiscal support.

Core Services & Objectives
 Provides leadership and strategic planning to enhance ongoing Department operations  Managesstaff, fiscal and other resources to ensure efficient maintenance, inspection, operation, and construction service delivery
 Provides Department leadership, organization development, and fiscal support services Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $959,519 $1,044,634 $1,410,530 35% $1,483,345 5% Contract Services $56,391 $1,500 $1,500 0% $1,500 0%
Other Operating Costs $53,434 $42,888 $42,888 0% $42,888 0% Public Works Admin Total $1,069,343 $1,089,021 $1,454,917 34% 6 $1,527,733 5%
Major City Goal Contribution
In partnership with Utilities, establish an internal working group to determine feasibility of creating a stormwater utility to fund stormwater operate as an enterprise fund.

Opportunities and Challenges
The department is excited about the potential opportunities that are available by hiring additional staff members within the Capital Improvement Plan Engineering program to help support the City’s Major Goals. The addition of the new Mobility Services division within the department will further assist in the overall goals while aiming to meet or exceed community expectations. With this staffing opportunity comes the challenge of management, onboarding, and proper training. Navigating these challenges effectively will be a priority to ensure optimum success. 6 Increase as a result of multiple previously approved staffing changes, including adding a new Contract Coordinator position and CIP Administrative Manager.

Table A-79:

Financial Plan Page 211

Operating Budget Public Works Admin
General Fund Public Works
Current and future challenges include the overall impact that the storm recovery efforts have created within the many programs of the public works department. These efforts were not anticipated or budgeted, so the ramifications of such costly efforts are highly impactful. The multi-faceted challenges created by congruent storms created unpresented workload efforts to keep the city functioning in the safest capacity as possible. In addition to the immediate emergency response effort while the storms were active the department will also have residual impact in restoring the overall damage.

Financial Plan Page 212

Operating Budget Parks Maintenance
General Fund Public Works
Parks Maintenance
Program Description
The Park Maintenance Program maintains City parks and landscaped areas as well as oversees contract services for janitorial maintenance of restrooms and park buildings and landscape maintenance of smaller parks and medians.

Core Services & Objectives
 Provides the community with safe park facilities
 Partner with the Parks and Recreation Department to provide venues for recreational programs and services
 Provides maintenance of park and other landscaped areas  Provides special event support
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,430,452 $1,383,883 $1,615,386 17% $1,687,517 4% Contract Services $655,468 $647,000 $857,000 32% $879,600 3% Other Operating Costs $1,466,749 $1,447,400 $1,653,852 14% $1,751,795 6% Parks Maintenance Total $3,552,669 $3,478,283 $4,126,238 19%7 $4,318,912 5% Major City Goal Contribution
In partnership with Parks and Recreation, environmental clean-ups in City Parks and public spaces associated with abandoned personal property and trash. (Housing & Homelessness, #3.7.b) Opportunities and Challenges
The program continues to be inundated with vandalism and transient related issues within the parks, which is resulting in reduced resources available to support other parks maintenance needs. During the 2023-24 fiscal year, the program will assume responsibility for an additional four parks with no increase to staffing levels, which could result in a lower level of maintenance at all parks and daily playground 7The Parks Maintenance Program increased due to adding a beautification gardener and result of the compensation adjustments and cost increases related to material costs and contract mowing services.

Table A-79:

Financial Plan Page 213

Operating Budget Parks Maintenance
General Fund Public Works
safety inspection not being completed regularly. Additional contract funding was allocated to the program, which is anticipated to be used to maintain the newly acquired facilities.

Like many programs, Parks Maintenance has been severely impacted by material cost escalation and supply chain issues. An increased funding for play surfaces is expected to ease this issue if material cost stabilizes. The recent addition of a Beautification Gardener has started to increase the aesthetics within the downtown area, which has been well received by the community. With the addition of the Beautification Gardener, the program supervisor now has 15 direct reports, which is not sustainable long term. A solution to this staffing ratio will need to be addressed to give all levels of staff the proper resources and to increase effectiveness.

Financial Plan Page 214

Operating Budget Swim Center Maintenance
General Fund Public Works
Swim Center Maintenance
Program Description
The Swim Center Maintenance Program maintains the swimming/diving pool and the therapy pool including all water treatment and mechanical equipment in compliance with Health Department Standards. Additionally, this program oversees the two bathhouses and swim deck area. All of these facilities are located at the pool complex located at Sinsheimer Park and referred to as the SLO Swim Center.

Core Services & Objectives
 Maintain the aquatic facilities in a clean, safe, and efficient manner  Provides skilled maintenance and specialized technical services  Operates the aquatic facilities in compliance with Health Department Regulatory requirement Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $171,777 $143,218 $153,817 7% $156,826 2%
Contract Services $9,902 $25,100 $22,100 -12% $22,100 0% Other Operating Costs $419,583 $426,880 $497,193 16% $509,589 2% Swim Center Maint Total $601,262 $595,198 $673,110 13% $688,515 2% Opportunities and Challenges
The Swim Center Maintenance Program will be instrumental in assisting the City achieve its carbon neutrality goals, because of large amount of natural gas currently used for pool and domestic hot water heating. Program staff have worked with the Office of Sustainability in completing the Building Decarbonization Plan and is ready to assist with implementation once funding is available. Utility cost could escalate with the transition to electric water heating and this expenditure will need to be closely monitored.

Table A-80
Financial Plan Page 215

Operating Budget Urban Forest Services
General Fund Public Works
Urban Forest Services
Program Description
The Urban Forestry Program maintains the urban forest located in streets and park areas by pruning, removing, replacing, and planting trees. The Program also provides staff liaison support to the Tree Committee, enforcement of the tree regulations, and assist in tree related development review activities.

Core Services & Objectives
 Provide and maintains a sustainable urban forest to increase neighborhood wellness, increase carbon sequestration to mitigate impacts of climate change, and provides aesthetic and other quality of life improvements to the community
 Maintains the City’s inventory of publicly owned and maintained trees within streets and parks  Provides staff support for the Tree Committee
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $255,215 $356,005 $337,917 -5% $359,616 6%
Contract Services $56,037 $72,225 $3,500 -95% $3,500 0% Other Operating Costs $23,246 $26,950 $26,950 0% $26,950 0% Urban Forest Services Total $334,499 $455,180 $368,367 -19% $390,066 6% Major City Goal Contributions
In partnership with Administration and Information Technology Department,staff will evaluate the Urban Forest Program's future role in advancing sustainability goals and objectives and complete the Urban / Community Forest Master Plan, comprehensive tree inventory update, database tracking system, pruning and maintenance (CAP Natural Solutions 2.1) and will adjust maintenance activities and delivery to reflect the Plan objectives.

Opportunities and Challenges
The Department worked collaboratively with Community Development and Natural Resources during the last Financial Plan to conduct an organizational assessment and find the best department placement for program responsibilities. This information was presented to Council and will be implemented during the 2023-25 Financial Plan. Due to funding constraints, a phased approach will be used with additional staffing resources added in later Financial Plans. The City plans to plant 10,000 new trees by 2035 to assist in achieving its ambitious carbon neutral goals. Doing so will place an additional workload on the Urban Forestry Program and additional resources in the future will be essential to care for the young trees and maintain the increase in tree inventory. Although the programs will be implemented in phases, it is expected to increase the current level of maintenance within the Urban Forest and will be well received by the community.
8 Urban Forestry contract services budget is now included within the Capital budget.

Table A-81:
8 Financial Plan Page 216

Operating Budget Facilities
General Fund Public Works
Facilities
Program Description
The Facilities Maintenance Program provides interior and exterior maintenance services for City buildings, except for the Utilities Treatment Plants and Pump Stations, Parking Structures, Bus Yard facility, Parks Restrooms, Laguna Lake Golf Course, and City Adobes. The program oversees unplanned repairs to existing building features such as roofs, ceilings, walls, floors, doors, windows, HVAC, plumbing, electrical systems, Hayworth systems furniture, security and fire alarm systems. The program also oversees planned and budgeted building maintenance minor capital projects that are not costly or complex enough to require engineering oversight, as well as contract services for HVAC, janitorial services (where applicable), applicable fire suppression, limited first aid kit service, elevator inspection, alarm monitoring and testing, sprinkler system testing and certification, and pest control.

Core Services & Objectives
 Maintain City buildings in a clean, safe, and efficient manner  Provides skilled maintenance and specialized technical services  Oversee contract maintenance services
 Provides technical support and consultation services for building improvements Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $641,194 $590,030 $642,679 9% $669,783 4%
Contract Services $311,206 $283,000 $384,125 36% $360,475 -6% Other Operating Costs $406,886 $502,035 $507,865 1% $518,037 2% Facilities Maintenance Total $1,359,287 $1,375,065 $1,534,669 12% $1,548,295 1% Opportunities and Challenges
The program currently has all positions filled; however, the impacts of one light duty assignment are impacting the ability to complete the work in a timely manner and requires more prioritizing than usual.

With the purchase of an existing building on Walnut Street, the program will have increased workload, which is expected to prolong the average time to complete work orders.

This program will play an integral role assisting the City to meet Carbon Neutrality goals. This will be accomplished by facility improvements funded through capital projects and on-bill financing. Upon competition of these projects, it is important to increase the programs future resources to account for the additional workload required to maintain the complex mechanical systems within the buildings. 9 Increase due to added janitorial costs for new City buildings or leased spaces.

Table A-82:
9 Financial Plan Page 217

Operating Budget Street & Sidewalk Maintenance
General Fund Public Works
Street and Sidewalk Maintenance
Program Description
The Street Maintenance Program maintains the paved portion of the City’s streets and manages the sidewalk maintenance program. Staff within this program repair and reconstruct streets, as well as sidewalks damaged by City owned street trees. They maintain street furnishings, signs, and pavement markings, provides regular downtown trash pickup, and oversees sidewalk scrubbing, and provides weekly traffic control for the Farmer’s Market.

Core Services & Objectives
 Provides the community safe public transportation infrastructure  Maintains existing roadway infrastructure including pavement, striping and signs  Provides traffic control services for Farmer’s Market Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,172,237 $1,498,671 $1,416,520 -5% $1,474,181 4% Contract Services $243,951 $343,600 $343,600 0% $343,600 0% Other Operating Costs $350,309 $581,600 $589,735 1% $598,277 1% Streets Maint Total $1,766,497 $2,423,871 $2,349,855 -3% $2,416,058 3% Major City Goal Contributions
Reconstruct and resurface streets; shared-use path maintenance; traffic signs and striping maintenance; additional street sweeping for sidewalks, bike lanes and downtown parklets; and sidewalk repairs and ADA curb ramp installations. (Climate Action, 4.4: e., f., g.) Opportunities and Challenges
The roadway infrastructure the Streets and Sidewalk Maintenance Program maintains will continue to increase during the next several years due to the construction of multiple new residential developments and the addition of more protected pedestrian and bicycle improvements. The approval of additional Maintenance Worker positions in Fiscal Year 2022-23 has allowed the program to increase the level of cleaning and maintenance in the downtown. The addition of these positions has made overall management of the program challenging due to the number of direct reports and work programs the supervisor manages. A long-term solution will need to be implemented to address this and provide staff the necessary support need at all levels and to promote efficiency.

The additional street sweeping contract funding has been well received by the community in keeping arterial and new residential streets clean, as well as protected bike and pedestrian improvements.

Additional funding will be needed to address cleaning of the North Chorro Greenway and any other future improvements.

Table A-83:

Financial Plan Page 218

Operating Budget Traffic Signals & Lighting
General Fund Public Works
Traffic Signals & Lighting
Program Description
The Signal and Light Maintenance Program operates and maintains traffic signals and streetlights on City streets, and the installing, operating, and monitoring of the City’s traffic management and detection systems.

Core Services & Objectives
 Provides safe and efficient traffic flow for all modes of travel through signalized intersections.  Provides appropriate lighting for streets and neighborhoods.  Maintains traffic signal operations and maintenance and streetlight operations and maintenance.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $271,056 $256,709 $283,930 11% $289,973 2%
Contract Services $71,902 $15,000 $15,000 0% $15,000 0% Other Operating Costs $255,057 $264,264 $297,417 13% $297,417 0% Signals and Lighting Total $598,015 $535,973 $596,347 11% $602,390 1% Opportunities and Challenges
With ongoing installation of new streetlights, off-street path lights, downtown decorative “zigzag” lighting, and new traffic signals throughout the City, the Traffic Signal and Streetlight Program will need to continually evaluate staffing resources and operating budgets to ensure that there are sufficient funds to maintain the traffic signal and streetlight infrastructure in a state of good repair. Over the past several years, there has been a measurable uptick with failures of older traffic signal equipment and increases in vehicle collisions with traffic signal and streetlight poles, which has elevated maintenance costs beyond available budgets. This has caused both budget overruns and undesirable deferrals of needed spare signal/streetlight equipment purchases.

With one of the City’s existing Traffic Signal/Streetlight Technicians nearing eligible age for retirement within the next five years, there will likely be a need to recruit a third full-time technician for a temporary period looking ahead towards the FY2025-27 Financial Plan to ensure that there is adequate staffing overlap and opportunity for training and transition planning.

The increasing availability of solar street and path lighting products presents a significant opportunity for the City to install and repair lighting infrastructure without the additional costs and delays often associated with coordinating hard-wired electrical installations with PG&E. Continued experimentation with solar lighting options as part of the previously funded Bob Jones Trail & Railroad Safety Trail Solar Lighting Project as well as continued funding of the New Streetlight Annual Asset Maintenance Project funding requests will allow for additional flexibility and efficiencies with maintaining the City’s streetlight infrastructure.

Table A-84:

Financial Plan Page 219

Operating Budget Fleet
General Fund Public Works
Fleet
Program Description
The Fleet Maintenance Program maintains and repairs all City vehicles and construction equipment except those used in the Transit Program and Fire Department.

Core Services & Objectives
 Provides a safe and reliable City fleet balancing maintenance and capital outlay costs  Provides comprehensive support for Police fleet asset maintenance and repair  Responsible for safeguarding and disposal of hazardous material stored at the Corporation Yard  Provides specialized maintenance and fabrication services  Completes vehicle procurement and disposal
 Completes reporting for State and Federal regulatory programs  Completes fuel purchasing
 Maintains fuel dispensing station and vehicle wash facility Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $643,176 $649,287 $536,902 -17% $557,198 4%
Contract Services $112,451 $147,800 $147,800 0% $147,800 0% Other Operating Costs $640,149 $598,300 $768,670 28% $780,300 2% Fleet Total $1,395,775 $1,395,387 $1,453,372 4% $1,485,298 2% Major City Goal Contributions
In partnership with Administration and Information Technology Department, install electric vehicle chargers to support the transition to all-electric fleet vehicles.

Opportunities and Challenges
The Fleet program will be essential in the City being successful in achieving carbon neutral goals. This will be accomplished though reducing the number of vehicles and equipment that produce Greenhouse Gas (GHG) emissions. Fleet replacement deferrals continue to be a tool to assist the City in addressing the unanticipated cost of storm repair work.

The amount of staffing will decrease by one mechanic and an intern position during this Financial Plan, which is expected to increase the duration of time required to complete fleet repairs and could negatively impact other City operations.
10 Increase due to increased fuel prices.

Table A-85:
10 11
11 One-time funded contract position from the 2021-23 Financial Plan removed from budget.

Financial Plan Page 220

Operating Budget CIP Engineering
General Fund Public Works
Capital Improvement Plan Engineering
Program Description
The CIP Project Engineering Program oversees design and construction of infrastructure projects in the City’s Capital Improvement Plan (CIP) and provides inspection services for public infrastructure improvements built by the private sector.

Core Services & Objectives
 Deliver the City’s capital construction program in a timely and cost-effective manner  Inspect private development to meet community needs and engineering standards  CIP project design
 CIP project construction management
 CIP administration
 Maintain current City Engineering Specifications and Standards Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $2,505,756 $2,572,191 $2,759,463 7% $2,873,717 4% Contract Services $58,484 $24,500 $24,500 0% $24,500 0% Other Operating Costs $100,407 $120,901 $103,901 -14% $103,901 0% CIP Project Eng Total $2,664,647 $2,717,592 $2,887,864 6% $3,002,118 4% Major City Goal Contributions
In partnership with Utilities, ensure the business community is updated and aware of major city projects (CIP and others) that will impact their operations. Coordinate with businesses adjusting working hours and construction impacts to reduce impacts.

Replace the existing Mission Plaza Restrooms in compliance with Mission Plaza Concept Plan and Council Direction; construct the new Cultural Arts District Parking Structure in coordination with SLO REP theatre; and install pedestrian crossing safety improvements with installation of a Pedestrian Hybrid Beacon at the South and King intersection.

Investing in critical infrastructure: The City will invest in critical infrastructure based on the approved 2021-23 CIP and proposed 2023-25 CIP or as otherwise directed by the City Council. Projects that 1) facilitate economic recovery, 2) enhance safety, resilience, fire prevention, 3) address past commitments (previously budget, approved planning documents), 4) are partnership projects with a significant portion of the cost covered by private development, 5) address existing core infrastructure maintenance needs Table A-85:

Financial Plan Page 221

Operating Budget CIP Engineering
General Fund Public Works
and 6) provide positive impact towards climate change goals and/or Diversity Equity and Inclusions needs will be prioritized for inclusion and Council’s consideration in the 2023-25 CIP.

Complete various CIP projects such as New Bob Jones Trail & Railroad Safety Trail Solar Path Lighting and Mid-Higuera Bypass flood risk reduction project.

Opportunities and Challenges
With the passage of Measure G 2020 the funding provided to implement Capital Improvement Plan projects has increased. However, the CIP Engineering program continues to navigate economic conditions which have proven challenging on resource availability for capital projects. Cost escalation and supply chain delays have impacted the City’s ability to deliver capital projects within budget and within estimated timelines. On top of that, the City is responding to the long-term impacts of the winter storms and rainfall which has had extreme impacts on the City’s infrastructure system.

The Capital Improvement Plan Engineering program has worked to scale its staffing capacity related to the workload anticipated over the next financial plan. The program has established new positions within the program as a result of the Management Partners study findings and recommendations and continues to recruit for vacant positions. Major work efforts of the program in the coming years include the ongoing design and construction of capital projects including the groundbreaking of the Cultural Arts District Parking Structure, Electric Vehicle (EV) charging infrastructure, street reconstruction and resurfacing, responding, and repairing storm drain infrastructure, and continuing to address citywide infrastructure needs. The FY 2023-25 Capital Improvement Plan allocates over $180 million of funding across the City.

Financial Plan Page 222

Operating Budget Transportation Planning & Eng
General Fund Public Works
Transportation Planning & Engineering
Program Description
The Transportation Planning and Engineering Program manages analysis, planning, operations, and design of the City's multimodal circulation systems.

Core Services & Objectives
 Enhance accessible regional transit, bicycle, and pedestrian mobility  Create safe and accessible walking and bicycling opportunities  Provide infrastructure supporting housing and reducing Vehicle Miles Traveled (VMT)  Support emerging transportation trends and technologies to transition towards sustainability  Completes Transportation Planning and Engineering Services in compliance with regulatory requirements
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,023,843 $925,269 $1,007,957 9% $1,051,771 4% Contract Services $56,141 $15,000 $15,000 0% $15,000 0% Other Operating Costs $43,057 $55,057 $55,057 0% $55,057 0% Program Total $1,123,041 $995,326 $1,078,014 8% $1,121,828 4% Major City Goal Contributions
 Publish biennial mode split progress report, consistent with performance monitoring recommendations as called for in the Active Transportation Plan and CAP Connected Communities task 1.1. (Climate Action, 4.4.a)
 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.
 Active Transportation Plan (ATP) Implementation: Implement infrastructure improvements and programs specifically identified in the City's Active Transportation Plan to improve access, mobility and safety for walking and bicycling citywide. Actions support the CAP Connected Communities task 2.1, ATP. Specific projects and programs within the current work program include:
 ATP Tier 1 Network – Complete final design and construction of the Higuera Complete Street project
 ATP Tier 1 Network – Complete construction of North Chorro Greenway project.

Table A-86:

Financial Plan Page 223

Operating Budget Transportation Planning & Eng
General Fund Public Works
 ATP Tier 1 Network – Complete design and construction of new signalized pedestrian/bicycle crossing at the intersection of South St. & King Ct.  ATP Tier 1 Network – Continue design of active transportation and safety improvements for Foothill Boulevard corridor, with goal to advance project to construction in FY2025-27.
 ATP Tier 1 Network – Complete final design and right-of-way acquisition for new roundabout at the intersection of California Blvd. & Taft St.  ATP Tier 1 Network – Implement complete street elements as part of 2023 and 2024 paving projects as guided by the ATP and Traffic Safety/Vision Zero reports.  ATP Tier 1 Network – Initiate design and environmental review for a project to complete the gap in the Railroad Safety Trail in the Orcutt Area between Tiburon and Orcutt Road, including replacement of narrow Bullock Lane culvert and pedestrian/bicycle crossing improvement at Orcutt/UPRR railroad crossing.  ATP Tier 1 Network – Complete design and initiate construction of pedestrian safety improvements at the UPRR railroad crossing near California Blvd./Foothill Blvd.
 Construct Minor Bicycle and Pedestrian Access & Safety Improvements  Support City Office of Sustainability staff, in partnership with Cal Poly, to continue exploring feasibility of future bikeshare program.
 Construct sidewalk repairs and new ADA curb ramps to improve access and safety for pedestrians, particularly those with mobility challenges. (Climate Action, 4.4.f)  Vision Zero – Transform Traffic Safety Report to Vision Zero Action Plan, with increased focus on implementation of traffic safety projects that prevent, and programs focused on City’s high crash/injury network and protecting vulnerable road users. (Climate Action,

4.4.g)
 Continue installation of new streetlights throughout the city and complete installation of new solar path lights along the Bob Jones and Railroad Safety Trails, utilizing solar options where feasible, to improve safety for active transportation users. (Climate Action, 4.4.k)  Continue to support CIP Engineering Division with advancing Prado Road Creek Bridge Replacement & S. Higuera/Prado Road intersection reconstruction, adding protected bicycle lanes, sidewalks and a bicycle protected intersection as recommended in the Active Transportation Plan. (Climate Action, 4.4.l)
 Continue to support CIP Engineering Division in advancing construction of the Prado Road Interchange project, proving more efficient connectivity for motor vehicles and transit service (reducing VMT), and providing physically separated facilities for bicycles and pedestrians as recommended in the Active Transportation Plan. (Climate Action, 4.4.m)  Continue Active Transportation Education and Outreach to encourage safe behaviors for all road users and to encourage interest and use of active transportation modes. (Climate Action, 4.4.n)
 Continue to evaluate feasibility of potential City VMT Mitigation Program, providing a programmatic mechanism to reduce VMT and GHG production of new development projects within the city. (Climate Action, 4.4.o)
Financial Plan Page 224

Operating Budget Transportation Planning & Eng
General Fund Public Works
 Continue advancing the electrification of the SLO Transit vehicle fleet, including electrification of buses and bus charging infrastructure. (Climate Action, 4.4.p)  Replace SLO Transit bus shelters to maintain a quality environment for new and future transit users. (Climate Action, 4.4.y)
Opportunities and Challenges
With the passage of Measure G 2020, the funding provided to implement the sustainable transportation projects within the Capital Improvement Plan has increased. Staff has also experienced continued success with leveraging regional and state grant opportunities for active transportation funding. In addition, the likely continuation of a very active private development market within the city will also continue to increase the level of responsibilities required by the Transportation Planning and Engineering program, which is heavily involved in development entitlement review, CEQA technical studies, design, and construction review of new development-driven transportation infrastructure, as well as administration of the Transportation Impact Fee program and developer reimbursement agreements. Considering the combination of increased capital project delivery responsibilities, development-related tasks, and ongoing day-to-day operations and programs (traffic data collection, field studies, signing/striping maintenance, resident requests, maintaining speed limits, etc.), the Transportation Planning and Engineering program will continue to carry a significant workload, which could affect timely delivery of priority projects and programs.

Consultant services operating budget has been retained to help assist City staff with minor tasks, where feasible, the team is requesting ongoing SOBC to support funding for two part-time transportation interns.

Financial Plan Page 225

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blank.

Financial Plan Page 226

Operating Budget Fire
FIRE
Mission Statement
To enhance and protect the lives, environment, and property of our community and its visitors.

About the Department
In addition to providing exceptional and compassionate emergency response, the Fire Department embraces comprehensive fire prevention and education strategies that include fire and life safety inspections, plan review services, wildland fuels management, fire/arson investigation, fire safety and public safety education, and City emergency management. The Fire Department has automatic and mutual aid agreements with surrounding departments, California Office of Emergency Services, and the Los Padres National Forest. With the values of Service, Loyalty, Ownership, Family, Integrity, Respect and Excellence the Department’s vision is to be a progressive organization that leads the community in public safety and preparedness demonstrated through an unwavering commitment to the protection of lives, property, and our environment. The service we provide will be of the highest quality recognized against local, state, and federal standards.

Financial Plan Page 227

Operating Budget Fire
The Department at a glance
Staffing
93%
Contract
Services
2%
Other Operating Costs
5%
Chart A-88: EXPENDITURES BY FUNCTION
Program 2021-22
Actuals
2022-23
Budget
2023-24
Budget
2024-25
Budget
Emergency Management $97,605 $180,217 $195,444 $204,891 Emergency Response $13,924,054 $11,419,286 $11,826,682 $12,084,850 Fire Admin $1,261,650 $1,057,173 $1,173,220 $1,220,274
Fire Apparatus Services $502,880 $466,131 $489,400 $496,515 Fire Station Facility Support $40,691 $41,675 $43,525 $43,525 Hazard Prevention $965,976 $915,290 $1,035,824 $1,064,736 Mobile Crisis Unit $43,085 $314,190 $320,417 $326,523
Recruit Academy $94,684 $0 $75,600 $0
Training Services $143,900 $121,150 $113,448 $113,448
Fire Total $17,074,525 $14,515,112 $15,273,559 $15,554,762 Table A-87:

Financial Plan Page 228

Operating Budget Fire
Chart A-89: Department Organizational Chart1
1 Does not include contract or supplemental positions
Fire (60.5)
Emergency
Management (1
FTE)
Fire Administration
(4 FTE)
Emergency
Response
Emergency
Response (46 FTE)
Fire Apparatus
Services (2 FTE)
Mobile Crisis Unit
(1 FTE)
Hazard Prevention
(6.5 FTE)
Financial Plan Page 229

Operating Budget Fire
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)
In coordination with Public Works and Human Resources, continue to enhance the department’s diversity, equity, and inclusion through improvements to fire station facilities, firefighter recruitment and training.

In coordination with the Office of Sustainability, continue to reduce the department’s carbon footprint to support Climate Action through best practices and thoughtful replacement of department apparatus resources.

In coordination with police expand the Mobile Crisis Unit hours and service through outside funding opportunities and partner agencies.

Continue community preparedness efforts for disasters through development of disaster plans and monitoring creek maintenance and wildfire protection plans.

Continue the implementation of the five strategic directions identified in the Department’s Annual Operational Plan as part of the 5-Year Strategic Plan by connecting with our community, continuously evaluate programs and service delivery, analyze relevant data to inform decision making, improve organizational culture, sustainability, and health, and support fiscal sustainability in department operation.

Financial Plan Page 230

Operating Budget Fire
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
Actual
2023-24
Target
2024-25
Target
Deliver Timely Emergency
Response to ensure rapid
care and hazard mitigation.

Strategic Goal: Other
Department Objectives
Meet the Total Response Time (TRT)
goal
of 7 minutes or less to 90% of all
lights-and-siren emergencies in the
City as defined by the Department’s
Master Plan. TRT Includes Call
Processing Time, Turnout Time, and
Travel Time.
8:44 8:48 7:00 7:00
Meet the Call Processing Time goal
of 1 minute or less to 90% of all
lights-and-siren emergencies in the
City as part of TRT.
1:37 1:35 1:00 1:00
Meet the Turnout Time goal
of 2 minutes or less to 90% of all
lights-and-siren emergencies in the
City as part of TRT.
3:00 2:26 2:00 2:00
5:34 5:51 4:00 4:00
Provide timely service to
the development
community.

Strategic Goal: Housing
% of Fire Department
Development Review
activities completed within
published cycle times.
61% 67% 80% 80%
Table A-90:

Financial Plan Page 231

Operating Budget Fire Administration
General Fund Fire Department
Fire Administration
Program Description
The Fire Administration program provides strategic leadership to the organization through planning, directing, and evaluating all Fire Department programs and their activities.

Core Services & Objectives
 Provide responsive, effective, and efficient fire department emergency service programs  Develop well planned, long-term sustainability focus for fire department personnel, service, facilities, equipment, and organization
 Department Administration and Leadership
 Public Information and support services
 Human resource recruitment, testing and management
 Fiscal and contract management
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,070,900 $844,011 $919,418 9% $964,507 5%
Contract Services $15,801 $5,550 $6,600 19% $7,400 12%
Other Operating Costs $174,949 $207,612 $247,202 19% $248,367 0% Fire Admin Total $1,261,650 $1,057,173 $1,173,220 11% $1,220,274 4% Major City Goal Contributions
The fire department implemented a new fire intern program in support the City’s Diversity, Equity, and Inclusion Major City Goal. The intern program seeks young individuals in the community that do not traditionally seek the fire service out as a career. The department has a strong history of hiring previous interns for full time positions in the department and staff will continue to use this as a recruitment tool to improve diversity within the department's ranks.
2 Increase due to promotional exam cost increases
3 Increase due to software budget moved from Prevention as well as commodity price increases Table A-91:
2 3
Financial Plan Page 232

Operating Budget Emergency Response
General Fund Fire Department
Emergency Response
Program Description
The Emergency Response Program is responsible for protecting life, the environment, and property by responding to a wide variety of all-risk emergencies, including, but not limited to: medical emergencies, structure fires, vegetation fires, hazardous materials incidents, vehicle fires/accidents, flooding, Urban Search and Rescue, Open Space Rescue and a comprehensive Advanced Life Support medical program.

Core Services & Objectives
 Deliver Timely Response
 Provide exceptional Emergency Medical Services (EMS) including Advanced Life Support  Provide effective weight of response personnel for initial attack on all types of fires  Provide effective incident response to protect life and limit environmental damage caused by release of hazardous materials
 Minimize property damage through quick and efficient incident mitigation  Provide exceptional fire protection efforts to limit the cause and spread of fire  Provide modern technical rescue such as vehicle extrication and care of victims trapped in wrecked vehicles, collapsed buildings, swift water rescues, trench rescue and trail/ cliffside/open space
 Provide assistance to communities outside of San Luis Obispo as part of the state’s Mutual Aid system
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $13,760,541 $11,267,518 $11,663,092 4% $11,921,260 2% Contract Services $14,237 $16,175 $17,666 9% $17,666 0% Other Operating Costs $149,276 $135,593 $145,924 8% $145,924 0% Emergency Response
Total $13,924,054 $11,419,286 $11,826,682 4% $12,084,850 2% Opportunities and Challenges
The department has requested a significant operating budget change in reaction to the increased cost of equipment and personal protection equipment because of inflation. The requested funding will allow the department to maintain or replace equipment necessary for all types of emergencies and the response to each emergency.

Table A-92:

Financial Plan Page 233

Operating Budget Emergency Response
General Fund Fire Department
Contributions to Major City Goal Objectives
Emergency Response is a fundamental component in providing a safe and resilient environment for the community and our visitors. Compassionate and competent personnel provide rapid and effective care anyone in need within our response areas. Emergency Response also informs prevention and education activities, a fundamental component of a safe and resilient community.

Financial Plan Page 234

Operating Budget Hazard Prevention
General Fund Fire Department
Hazard Prevention
Program Description
The Hazard Prevention Program prevents injury and loss of life, property and the environment damaged by fire, explosion, or exposure to hazardous materials.

Core Services & Objectives:
 Reduce and/or eliminate fire hazards and investigate fires in buildings, properties and equipment through plan review and safety inspection services.
 Participate in the County Certified Unified Program Agency (CUPA) program to track, inspect, and increase safety related to hazardous materials.
 Expand public awareness about the dangers of fire and hazardous materials.  Conduct thorough Fire and Life safety inspections and abatement.  Conduct Fire investigation cause and origin determination, support SLOPD for Arson Investigations.
 Conduct Hazardous material inspection and abatement.
 Provide prompt building plan review and construction inspections.  Ensure proper Hazardous waste removal and disposal.
 Provide modern Fire Prevention Education.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $879,900 $844,948 $976,897 16% $1,005,809 3%
Contract Services $19,324 $1,500 $1,500 0% $1,500 0%
Other Operating Costs $66,752 $68,842 $57,427 -17% $57,427 0% Hazard Prevention Total $965,976 $915,290 $1,035,824 13% $1,064,736 3% Contributions to Major City Goal Objectives
Hazard Prevention supports the planning and building throughout the city by working with City partners and stakeholders for compliance with Fire and Life safety requirements in the built environment. A streamlined and efficient planning and permitting process is an essential contribution to the City’s business community.
4 Fire Marshal now 100% budgeted to Fire Department, was previously split with CDD due to the position also filling the role of Chief Building Official
5 Software budget being used by prevention moved to Fire Administration Table A-93:
4 5
Financial Plan Page 235

Operating Budget Training Services
General Fund Fire Department
Training Services
Program Description
The Fire Training Program schedules, coordinates, and documents both in-house and outside training and certification for fire department staff. The program also works to maintain and improve the health fitness of fire department employees. The overall program goal is to provide and support highly qualified, well trained, safe, healthy, and fit employees.

Core Services & Objectives
 Provide and support highly qualified, well-trained employeesto maintain safety, good health, and fitness among fire department staff.
 Provide high quality and modern in-service training delivery on All-Risk incident topics.  Provide and support effective training in Fire Prevention responsibilities.  Support external training opportunities for State Fire and CICCS Training Certifications.  Continue to improve on the functional fitness injury reduction program.  Provide required safety training to all employees including after action reporting.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $53,010 $0 $0 0% $0 0%
Contract Services $44,480 $48,730 $49,964 3% $49,964 0% Other Operating Costs $46,410 $72,420 $63,484 -12% $63,484 0% Training Services Total $143,900 $121,150 $113,448 -6% $113,448 0% Opportunities and Challenges
The department continues to face staffing challenges due to retirements and regular turnover. As vacancies are filled, the department faces the new challenge of a young, less experienced staff requiring increased training hours to continue to fill advancement opportunities in the job series. The department will attempt to hold as many trainings in house and on site as possible to reduce costs of overtime and travel.
6 The Safety and Training Captain is budgeted in the Emergency Response cost center.

Table A-94:
6 Financial Plan Page 236

Operating Budget Recruit Academy
General Fund Fire Department
Recruit Academy
Program Description
The Recruit Academy Program is responsible for coordinating and completing the training of new hire firefighters. Traditionally, the Fire Department conducts recruitment and hiring every other year based on staffing needs. New recruits are required to complete the ten-week academy hosted by the Fire Department upon hire, ensuring each new fire fighter meets the NFPA 1001 standard for the professional qualifications for firefighter.

Core Services & Objectives
 Conduct ten-week task-based recruit-training for all new hire firefighters  Outfit all firefighter recruits with proper personal protective equipment (PPE) Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Contract Services $14,966 $0 $9,000 100% $0 -100%
Other Operating Costs $79,718 $0 $66,600 100% $0 -100%
Recruit Academy Total $94,684 $0 $75,600 100% $0 -100%
7 This program is only budgeted every other year. Now that the City has a dedicated Training Captain, some operational costs of gone down since FY 2021-22.

Table A-95:
7 Financial Plan Page 237

Operating Budget Fire Apparatus Services
General Fund Fire Department
Fire Apparatus Services
Program Description
The Fire Apparatus Program performs fire apparatus services, maintenance, and repair of light and heavy fire apparatus and vehicles.

Core Services & Objectives
 Perform all required maintenance on light and heavy fire vehicle apparatus and vehicles and related equipment
 Maintain all apparatus and equipment in sound working order  Maintain all fire station generators in sound working order  Oversee annual inspections of both ground and aerial ladders Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $302,091 $259,558 $270,203 4% $277,318 3%
Contract Services $20,148 $27,235 $28,035 3% $28,035 0% Other Operating Costs $180,640 $179,338 $191,162 7% $191,162 0% Fire Apparatus Services
Total $502,880 $466,131 $489,400 5% $496,515 1%
Table A-96:

Financial Plan Page 238

Operating Budget Fire Station Facilities Support
General Fund Fire Department
Fire Station Facilities Support
Program Description
Fire Stations Facilities Support manages and maintains the City’s four fire station facilities, their grounds and miscellaneous related equipment, appliances, and furnishings. Fire Station support is maintained through partnerships with City Facilities Management.

Core Services & Objectives
 Maintain safe, functional, attractive, and energy efficient fire stations.  Work closely with the Public Works Department to facilitate building repairs and landscape maintenance.
 Minor facilities maintenance
 Public Access Automatic External Defibrillators (AED) maintenance  Fire Mapping Program
 Fire Radio System and Equipment
Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Contract Services $16,734 $12,800 $13,800 8% $13,800 0% Other Operating Costs $23,957 $28,875 $29,725 3% $29,725 0% Fire Station Facility Support
Total $40,691 $41,675 $43,525 4% $43,525 0%
Table A-99:

Financial Plan Page 239

Operating Budget Emergency Management
General Fund Fire Department
Emergency Management
Program Description
The Emergency Management Program has three primary areas of focus: 1) through planning and training, ensures that City personnel can provide appropriate response and recovery services following a major emergency or disaster such as earthquake, flood, nuclear power accident, hazardous material spill, wildland fire and pandemics: 2) provides information and education on community and individual disaster readiness, and fire safety to the general public: 3) oversees hazard mitigation strategies and projects to improve the city’s ability to limit the impacts of a major disaster and improve the resiliency of the community.

Core Services & Objectives
 Provide disaster response training to City employees.  Maintain up-to-date hazard mitigation plan, emergency operations plan and community wildfire protection plan.
 Provide outreach and education to residents and businesses in disaster and emergency readiness.  Leads city response and recovery efforts during and after large scale emergencies and disaster.  Ensures the City Emergency Operations Center (EOC) is in a readiness state.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $23,853 $146,402 $174,414 19% $183,861 5%
Contract Services $59,696 $30,000 $0 -100% $0
Other Operating Costs $14,056 $3,815 $21,030 451% $21,030 0% Emergency
Management Total $97,605 $180,217 $195,444 8% $204,891 5% Contributions to Major City Goal Objectives
Emergency management will continue to align with the City’s Major City Goal of Climate Action by increasing community resilience to major disasters and increasing preparedness as well as provide recovery resources.
8 FY 2022-23 includes some one-time funding for the newly established program. Some budget was eliminated, and some was moved from "Contract Services" to “Other Operating Costs” Table A-100:
8 Financial Plan Page 240

Operating Budget Mobile Crisis Support
General Fund Fire Department
Mobile Crisis Unit
Program Description
Mobile Crisis Support is a pilot program for the Fire Department formally launched in July 2022. The pilot program establishes a Mobile Crisis Unit staffed with a social worker who is paired with Firefighter/EMT and are dispatched to non-emergency calls for service involving unhoused residents and community members in crisis.

Core Services & Objectives
 Provide crisis support to all community residents.
 Improve unhoused resident access to needed social services.  Reduce law enforcement and paramedic response in non-emergency situations when possible.  Improved patient care; reduced emergency room transports.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $24,263 $109,204 $139,392 28% $145,498 4%
Contract Services $4,593 $125,672 $126,672 1% $126,672 0% Other Operating Costs $14,230 $79,314 $54,353 -31% $54,353 0% Mobile Crisis Unit Total $43,085 $314,190 $320,417 2% $326,523 2% Contributions to Major City Goal Objectives
In partnership with the community development and police departments, the fire department created the Mobile Crisis Unit. The establishment of this program is aligned with the City’s Major City Goal of Housing and Homelessness and is intended to provide needed support to the unhoused residents or any community member of San Luis Obispo in crisis while also reducing the strain on emergency services staff within the Fire and Police Departments.
9 Reclassified a position from EMT to Firefighter/EMT.
10 One-time start-up costs from the 2021-23 Financial Plan were removed.

Table A-101:
9 10
Financial Plan Page 241

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Financial Plan Page 242

Operating Budget
General Fund
POLICE
Mission Statement
Maintaining a safe city by working in partnership with the community to protect life and property, prevent and reduce crime, and improve the quality of life in our neighborhoods while preserving the rights of all through a commitment to Service, Pride, and Integrity.

About the Department
The Police Department consists of two operating bureaus: Operations and Administration. The Operations Bureau consists of patrol services, traffic safety, and neighborhood services. The Administrative Services Bureau includes administrative services, investigative division, communications, and records units.

Financial Plan Page 243

Operating Budget
General Fund
The Department at a glance
Staffing
94%
Contract Services
3%
Other Operating Costs
3%
Chart A-103: EXPENDITURES BY FUNCTION
Program 2021-22
Actuals
2022-23
Budget
2023-24
Budget
2024-25
Budget
Investigations $3,621,224 $3,521,262 $3,057,865 $3,105,337 Neighborhood Services $284,409 $282,674 $302,867 $309,929 Patrol $12,616,286 $10,684,397 $11,914,934 $12,245,831
Police Admin $1,880,726 $2,103,633 $2,300,494 $2,357,587 Police Support Services $3,315,494 $3,198,032 $3,596,650 $3,664,786 Traffic Safety $863,845 $1,076,266 $913,242 $923,603
Police Total $22,581,983 $20,866,264 $22,086,053 $22,607,072 Table A-102:

Financial Plan Page 244

Operating Budget
General Fund
Police Department Budget Breakdown
The City of San Luis Obispo’s Police Department provides more than the traditional public safety services associated with sworn patrol officers. The graphic below illustrates these services:

NonTraditional
Police
Operations
Homelessness
Services
- Community Action
Team
Neighborhood
Services
- Neighborhood
Services Manager
- SNAP
Downtown Services
- Community Service
Officers
- Downtown Bike
Team
Other Support
Services
- Crime Analyst
- Technical Forensic
Evidence Technician
School Resource
Officer
-Position is paid for by
the San Luis Coastal
Unified School District
Pro-Active Outreach
- Special Enforcement
Team
- Technical Forensic
Evidence
27%
Civilian
73%
Sworn
Chart A-104: FY 23-24 Staffing Cost by Type
$4,042,645
$18,141,318
Staffing & Programs
Chart A-105: FY 23-24 Police
Budget: $22,183,963
Financial Plan Page 245

Operating Budget
General Fund
Chart A-106: Department Organizational Chart1
1 Does not include supplemental or contract employees.

Police
(95 FTE)
Administration
Police
Administration
(7 FTE)
Support Services
(20 FTE)
Operations
Patrol
(47 FTE)
Investigations
(16 FTE)
Neighborhood
Services
(1 FTE)
Traffic Safety
(4 FTE)
Financial Plan Page 246

Operating Budget
General Fund
Table A-108: Operating
Budget Changes SOBC Description Type 2023-24 2024-25
1 Community
Policing Software
Purchasing this specialized software will enable the
department to provide enhanced community
policing efforts. The software is data driven and
provides predictable crime locations, identifies
crime patterns, provides risk assessments, creates
patrol heatmaps, utilizes microgrid technology, and
provides many other tools to increase overall
community safety and transparency.

Ongoing $15,000 $15,000
2 Increased Cost for
Animal Services
Operations
The City contracts with the County of San Luis
Obispo for the provision of Animal Care and Control
Services. Services include emergency and nonemergency response, investigative services, sheltering, licensing, and adoption services. Animal
Services recently requested an amendment of their
position allocation to add 3.0 FTE Animal Care
Technicians (ACTs). This budget recommendation
will help support that request as well as cover the
anticipated cost increases in existing services.

Ongoing $50,000 $50,000
3 Investigative
Software
One of the investigative tools used by the
department allows the detectives to obtain
information from various types of smart phones.

The department has been using this tool over the
past year which had been paid for by another entity.

The outside entity will no longer be funding this
software and the department is requesting ongoing
funds to continue the use of this robust and
extremely beneficial tool.

Ongoing $11,000 $11,000
4 Reclassification -
Administrative
Assistant III
(Police)
Requesting a reclassification of the Chief's Executive
Administrative Assistant. The position is entrusted
with some of the most sensitive data, manages all
police records including personnel files, internal
investigation files, etc. and has many other tasks
that are unique to public safety and not included in
the current job classification. Although all City’s
Administrative Assistant positions have some phone
duties and public contact, this role frequently deals
with hostile, aggressive callers, creating a very
stressful environment due to the nature and
political undertones of policing in the community.

The current Administrative Assistant to the Chief
position is undercompensated compared to all
comparison cities when looking at Police Chief and
Sheriff Executive Assistants. The recommendation
is to create an Administrative Assistant IV
specifically for the Public Safety Administrative
Assistant role.

Ongoing $0 $0
Financial Plan Page 247

Operating Budget
General Fund
SOBC Description Type 2023-24 2024-25
5 Reclassification -
Communications
Manager
As part of an internal reorganization, the
department temporarily assigned a lieutenant to
the Emergency Communications Center (ECC). Prior
to this, the ECC was managed by a civilian
Communications Manager and two Communication
Technician Supervisors. Due to the reorganization,
the Communications Manager transitioned into a
vacant supervisor position. The re-assignment of a
patrol lieutenant to the ECC has proven to be very
successful as it places some operational experience
directly into the operations of the dispatch team.

The department is budgeted for three lieutenant
positions which includes patrol night watch, patrol
day watch, and an investigative/administrative
lieutenant. Staff is requesting to add a fourth
position which will allow the permanent placement
of a lieutenant to the ECC. Funding from the civilian
Communications Manager position (which is vacant
and will no longer be necessary) will help offset
costs of adding a fourth lieutenant.

Ongoing $105,567 $105,630
TOTAL $181,567 $181,630
Financial Plan Page 248

Operating Budget
General Fund
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 Goals
Promote best practices in Police Department recruiting and hiring efforts.

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

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

Use Community partnerships to help build a 5-year strategic plan to create transparency and legitimacy.

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

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.

Maintain SLOPD bike patrol program as staffing allows.

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.

Financial Plan Page 249

Operating Budget
General Fund
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 Actual 2023-24 Target 2024-25 Target Reduce Crime
Strategic Goal:

Economic Recovery,
Department Mission
# of total Part I Crime
by year.2
2,069 2,011 2,010 2,009
Provide safe
roadways for
pedestrians, vehicles,
and bicyclists.

Strategic Goal: Patrol
Objectives,
Department Mission
# of total traffic
collisions.3
Vehicle: 399 Vehicle: 435 Vehicle: 420 Vehicle: 418
Pedestrian: 32 Pedestrian: 36 Pedestrian: 34 Pedestrian: 32 Bicycle: 36 Bicycle: 35 Bicycle: 32 Bicycle: 30
# of targeted
enforcement
operations
conducted under the
Office of Traffic
Safety Grant per year
DUI Checkpoints: 2 DUI Checkpoints: 2 DUI Checkpoints: 2 DUI Checkpoints: 2 DUI Saturation
Patrols: 28
DUI Saturation
Patrols: 20
DUI Saturation
Patrols: 28
DUI Saturation
Patrols: 28
Traffic Enforcement
Operations: 8
Traffic Enforcement
Operations: 12
Traffic Enforcement
Operations: 15
Traffic Enforcement
Operations: 15
Distracted Driving
Enforcement: 7
Distracted Driving
Enforcement:10
Distracted Driving
Enforcement: 5
Distracted Driving
Enforcement: 5
Bicycle &
Pedestrian
Enforcement: 5
Bicycle &
Pedestrian
Enforcement: 6
Bicycle &
Pedestrian
Enforcement: 9
Bicycle &
Pedestrian
Enforcement: 9
Reduce Homeless
related Calls for
Service through
proactive
engagement.

Strategic Goal:

Economic Recovery,
Department Mission,
Patrol Objective
# calls related to
homelessness4
7,441 6,444 6,300 6,200
# of unique
individuals contacted
by CAT
578 303 305 310
# of Family & Agency
Reunification 17 7 8 10
# of Local Permanent
Housing 3 11 12 13
# of Mental
Health/Substance
Abuse Treatment
Referrals
127 98 100 102
2 Part 1 Crimes include: homicide, forcible rape, robbery, aggravated assault, burglary, and motor vehicle theft. Figures shown represent calendar year.
3 Traffic Collision data is shown by calendar year.
4 All stats related to homelessness are based on calendar year.

Table A-109:

Financial Plan Page 250

Operating Budget Police Administration
General Fund
Police Administration
Program Description
The Police administration program plans, directs, and evaluates all police services, including overall department leadership provided by the Chief of Police. Police administration provides business and fiscal management; personnel hiring and training; risk management; claims/lawsuit coordination; contract service administration; equipment purchases and maintenance; and computer application support for public safety information systems, including computer aided dispatch (CAD) and records management applications. This program is also responsible for preparing and implementing policies and procedures, ensuring appropriate training and performance standards are maintained and ensuring compliance with mandates.

Core Services & Objectives
• Provide overall department administration and leadership. • Implement strategies to enhance intelligent lead policing to work toward reducing crime. • Provide business and fiscal administration including grant management and contract administration.
• Process and oversee internal affairs investigations.
• Manage the hiring and training of department personnel. • Manage Lexipol and policy development.
• Ensure department fiscal sustainability and responsibility.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,044,483 $1,246,076 $1,372,291 10% $1,423,227 4% Contract Services $469,784 $538,767 $594,657 10% $596,153 0% Other Operating Costs $366,459 $318,790 $333,546 5% $338,207 1% Police Admin Total $1,880,726 $2,103,633 $2,300,494 9% $2,357,587 2% Major City Goal Contributions
• The Police Administration program will be responsible for ensuring the department contributes to the work programs for the following Major City Goals: Housing and Homelessness and Diversity Equity and Inclusion.

Table A-110:

Financial Plan Page 251

Operating Budget Police Administration
General Fund
• Diversity Equity and Inclusion: the department will be promoting DEI best practices in recruiting and hiring efforts. The department will also continue to work with community partners to give the community a voice in policing and that 21st century policing recommendations are implemented where possible. Staff will also work with community partners to help build a 5-year strategic plan to create transparency and legitimacy.

Opportunities and Challenges
In the first quarter of 2023, the department started working with a consultant to create a five-year strategic plan. Components of the plan include a current state assessment (internal and community surveys, SWOT assessment, one-on-one interviews), future state development (identifying priorities, objectives and strategies), strategic plan development (document development, review and approvals, action plan and implementation strategies). Staff is looking forward to identifying priorities and setting direction for the next 5-years.

The department continues to be challenged in hiring due to a diminished applicant pool. Staff is working to create new ways of stimulating a diverse applicant pull through recruiting, marketing, and advertising efforts.

Financial Plan Page 252

Operating Budget Patrol
General Fund
Patrol
Program Description
The police patrol services program utilizes uniformed personnel to respond to emergencies and calls for service; conduct preliminary investigations of criminal activity and routine traffic collisions; enforce state and City laws and statutes; apprehend criminals; manage unusual incidents; implement crime prevention strategies; and provide other public safety services.

Core Services & Objectives
• Use intelligent lead policing strategies focusing on neighborhood safety and quality of life and utilizing the current Neighborhood Officer Program.
• Enforce traffic laws focused on violations that tend to increase collisions. • Deploy the Community Action Team and Downtown Bike Unit to address adverse behavior and homeless issues within the downtown and explore ways to manage and address homeless related issues that negatively impact our community.
• Continue to partner with Transitions Mental Health Association (TMHA) to address the needs of individuals that may be dealing with Mental Health related issues within our community. • Utilize the department’s Community Service Officers to respond to non-emergency calls for service, conduct proactive patrols and community outreach, and issue citations for Municipal Code violations.
• Provide emergency and non-emergency response and service to the community. • School Resource Officer provides public safety resources to local educational communities.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $12,415,883 $10,561,497 $11,785,934 12% $12,116,831 3% Other Operating Costs $200,402 $122,900 $129,000 5% $129,000 0% Patrol Total $12,616,286 $10,684,397 $11,914,934 12% $12,245,831 3% Major City Goal Contributions
• Housing & Homelessness: The Patrol program will maintain the downtown bike patrol officers as staffing allows. The department will implement the new Community Service Officer program to ensure effectiveness and improvements in quality-of-life surrounding homelessness issues in the downtown. The department will support the leverage of additional funding from other partner agencies to expand the Mobile Crisis Unit and the Community Action Team.

Table A-111:

Financial Plan Page 253

Operating Budget Patrol
General Fund
Opportunities and Challenges
The department received approval to increase the number of full-time civilian Community Service Officers (CSOs), formerly Field Services Technicians, from two to six. The CSOs will respond to non-emergency calls for service, conduct proactive patrols and community outreach primarily in the downtown area. In early March, Council approved an Ordinance allowing the CSOs to issue citations for all Infraction and Misdemeanor Violations of the Municipal Code.

The department continues to experience challenges with recruitment and retention, as a result the CAT team continues to be understaffed with only one police officer. Additionally, TMHA has been unable to fulfill a contract to hire a second mental health social worker to partner with CAT.

Financial Plan Page 254

Operating Budget Investigations
General Fund
Investigations
Program Description
This program investigates criminal activity. Program staff also interview and monitor convicted sex and arson offenders, coordinate and deliver enforcement, intervention, and education services to the high school, and junior high, provide forensic investigative services and evidence collection and analysis, and process and dispose of evidence and property.

Core Services & Objectives
• Collaborate with organizations to identify and improve sexual assault prevention and investigation efforts.
• Conduct pro-active investigations in crime trends which victimize City residents and businesses. • Provide crime awareness and public training opportunities to reduce victimization within the community.
• Manage all evidence and property in accordance with the law and established policy. • Work collaboratively with other law enforcement agencies to address criminal activity. • Conduct compliance checks in accordance with the City’s Municipal Code related to alcohol and tobacco licenses.
• Monitor licensed cannabis retail/delivery businesses and conduct investigations related to illegal cannabis retail.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $3,596,819 $3,382,271 $3,007,865 -11% $3,055,337 2% Contract Services $4,116 $109,892 $7,900 -93% $7,900 0% Other Operating Costs $20,289 $29,100 $42,100 45% $42,100 0% Investigations Total $3,621,224 $3,521,262 $3,057,865 -13%5 $3,105,337 2% Opportunities and Challenges
5 Due to staffing shortages in Patrol, the department moved 2 FTEs from Investigations (Special Enforcement Team) to help with workload in Patrol. If the Department becomes fully staffed, these positions can be moved back to Investigations. In addition, programmatic changes were made to move some Contract Services budget related to Cannabis program support to help offset staffing costs. The increase in Other Operating Costs is related to an SOBC for investigative software.

Table A-112:

Financial Plan Page 255

Operating Budget Investigations
General Fund
On ongoing challenge for the detective bureau has been staffing. The detective bureau has not been fully staffed over the past year and a half. Additionally, the Special Enforcement Team (SET) has not been operational due to low staffing levels in patrol. The priority is to fill patrol positionsto support basic police functions.

Financial Plan Page 256

Operating Budget Police Support Services
General Fund
Police Support Services
Program Description
The support services program is divided into two divisions: Communications and Records. The program is involved in Department of Justice audits, acts as custodian of criminal records and compliance with State and Federal regulations. Staff are responsible for receiving, processing and dispatching emergency and non-emergency calls for service, public outreach, processing police reports and citations, tracking and reporting crime statistics, and maintaining confidential information.

Core Activities & Objectives
• Public Safety Answer Point for all emergency and non-emergency calls. • Dispatch all police and fire related calls for service in a timely and efficient manner. • Provide effective communication to support public safety personnel at all times. • Process all police records and provide quality assurance. • Respond and prepare public records requests and discovery letters. • Prepare and submit all mandated statistical reports to Department of Justice and other agencies.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $3,124,118 $2,998,997 $3,379,615 13% $3,443,751 2% Contract Services $167,568 $156,335 $174,335 12% $178,335 2% Other Operating Costs $23,809 $42,700 $42,700 0% $42,700 0% Police Support Services
Total $3,315,494 $3,198,032 $3,596,650 12% $3,664,786 2% Opportunities and Challenges
Challenges for Support Services include filling vacant Clerk and Dispatcher positions and successfully completing training. Staff anticipates that all vacant Dispatcher positions will be filled this year. Training for both types of positions is challenging due to the technical and rigorous schedule and typically lasts about 8-months or longer.

Table A-113:

Financial Plan Page 257

Operating Budget Neighborhood Services
General Fund
Neighborhood Services
Program Description
The Neighborhood Outreach & Education Program is responsible for the coordination of services and outreach to community members with an emphasis on residential neighborhoods. The Program coordinates response to violations of the City noise ordinance, along with related follow-up, data collection, and the issuance of warning notices and administrative citations to property owners. The program also includes support to various committees and neighborhood groups as well as receiving and acting on concerns of neighborhood residents about issues affecting the quality of life.

Core Activities & Objectives
• Collaborate with patrol to improve public outreach related to crime trends including web/social media outreach, in-person presentations, media releases, videos, etc. • Respond to neighborhood concerns/complaints, facilitate assistance for residents. • Create social media content calendar and push information via Nextdoor, Instagram, Facebook, and Twitter.
• Evaluate, update, and enhance noise and Safety Enhancement Zone materials to maintain the positive downward trend of noise disturbances in the neighborhoods. • Management of S.N.A.P. (Student Neighborhood Assistance Program) • Enforcement of neighborhood parking regulations.
• Oversee Party registration requests.
• SLO Solutions contract management for conflict resolution. • Department Volunteer Coordination.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $240,804 $227,274 $245,067 8% $252,129 3%
Contract Services $18,969 $27,000 $27,000 0% $27,000 0% Other Operating Costs $24,636 $28,400 $30,800 8% $30,800 0% Neighborhood Services Total $284,409 $282,674 $302,867 7% $309,929 2% Opportunities and Challenges
The Neighborhood Services program is continuously searching for new opportunities to enhance communication with the community with the use of social media and other forms of messaging. An ongoing challenge has been the hiring and retention of SNAP employees. The recent increase in SNAP employee’s salary should potentially help with recruitment and ongoing retention in the future.

Table A-114:

Financial Plan Page 258

Operating Budget Traffic Safety
General Fund
Traffic Safety
Program Description
The traffic safety program provides enforcement of traffic laws, collision investigations, education programs, and coordination and support of special events.

Core Activities & Objectives
• Conduct special enforcement operations in the City’s most hazardous intersections and roadways to reduce collisions, including a focus on collisions involving bicycles and pedestrians.
• Provide enforcement efforts of DUI violations.
• Implement data-driven approaches to crime and traffic safety to maximize resources and reduce crime and collisions and conduct programs designed to increase traffic safety in the neighborhoods.
• Continue to actively participate in traffic safety programs such as Selective Traffic Enforcement Programs through the California Office of Traffic Safety grants. • Conduct collision investigations and special event coordination within the city. • Work collaboratively with the City’s Public Works Engineering staff to improve overall traffic and pedestrian safety.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $839,444 $1,050,666 $886,942 -16% $897,303 1%
Contract Services $7,494 $6,200 $4,900 -21% $4,900 0%
Other Operating Costs $16,907 $19,400 $21,400 10% $21,400 0% Traffic Safety Total $863,845 $1,076,266 $913,242 -15%6 $923,603 1% Opportunities and Challenges
The department continues to operate at a reduced capacity in Traffic which greatly affects the department’s ability to conduct education and enforcement. The department is unable to fully staff the Traffic program, which would be one Sergeant and three officers, due to ongoing recruitment and retention issues at the officer level.
6 Due to staffing shortages in Patrol, the Department moved an officer from the Traffic division to help with the workload in Patrol. If the Department becomes fully staffed, the position can be moved back to Traffic. The budget for Contract Services was reduced and moved to Other Operating Costs due to increased costs in rain gear and collision software.

Table A-115:

Financial Plan Page 259

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Financial Plan Page 260

BUSINESS ACTIVITIES &

SPECIAL REVENUE FUNDS
Financial Plan Page 261

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Financial Plan Page 262

Utilities
Operating Budget

UTILITIES
Mission Statement
Ensuring safe and reliable essential water and sewer services.

About the Department
The Utilities Department provides essential services that support the community’s health, well-being, and quality of life. Through its efforts, water for the community is safely transported, treated, distributed, used, collected, recovered, and beneficially reused. These efforts are accomplished by the department’s water and wastewater divisions. Additionally, the department manages the City’s solid waste program and administers the City’s stormwater compliance program. Long range planning for water resources and infrastructure needs, environmental stewardship, and business management are required to provide these vital services and are critical functions of the Utilities Department. In total there are 14 programs that constitute the Utilities Department.

Financial Plan Page 263

Utilities
Operating Budget
The Department at a glance
Program 2021-22
Actuals
2022-23
Budget
2023-24
Budget
2024-25
Budget
Water Admin and Engineering $1,209,004 $1,348,534 $1,486,713 $1,579,212 Water Source of Supply $9,544,384 $10,818,843 $11,779,859 $12,101,484 Water Treatment $3,169,856 $3,461,885 $4,231,823 $4,435,250 Water Distribution $1,931,596 $1,859,656 $2,037,856 $2,088,658 Water Resources $500,607 $571,228 $633,999 $623,080
Wastewater Admin and
Engineering $1,366,330 $1,390,945 $1,583,037 $1,691,475 Wastewater Collection $1,335,349 $1,331,027 $1,486,752 $1,538,435 Environmental Programs $264,536 $282,237 $319,106 $326,027 Water Resource Recovery $3,914,609 $4,182,465 $4,659,977 $4,830,115 Utilities Revenue $538,096 $618,167 $648,850 $691,946
Water Quality Lab $697,677 $834,485 $866,697 $846,901
Solid Waste & Recycling1
$185,845 $317,456 $341,459 $349,657
Reservoir Operations $1,004,651 $1,309,122 $1,500,955 $1,603,884 Stormwater2
$1,115,929 $1,083,704 $1,195,293 $1,227,164
Total $26,778,469 $29,409,755 $32,772,376 $33,933,289
1 Solid Waste & Recycling is funded through the General Fund but managed by the Utilities department. 2 Stormwater is funded through the General Fund but managed by the Utilities department. 2022-23 2023-24
Existing FTEs 74.63 74.63
Additional FTEs (per SOBCs) 0 0
Supplemental/Contract FTEs 1 3
TOTAL FTEs 75.63 77.63
Table B-1:

Table B-2:

Financial Plan Page 264

Utilities
Operating Budget
Chart B-3: Department Organizational Chart3
3 Does not include supplemental or contract positions. Stormwater is not included because it includes staff from Administration, Public Works, and Utilities.

Financial Plan Page 265

Utilities
Operating Budget
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 pursue grant funding for all funds and innovative strategies to mitigate rate increases and ensure continued affordability.

Improve resiliency in water and sewer programs to ensure continued service delivery through emergency planning, infrastructure maintenance, and expansion of source water supplies.

In coordination with the Community Development Department, continue to optimize water and wastewater systems to facilitate the City’s housing goals.

Develop strategies for departmental efficiencies and continue to explore new ways of doing business reducing ongoing operational costs and capital delivery costs while exploring supplemental revenue streams to reduce the rate burden on City residents and businesses 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
Forecasted 2023-24 Target 2024-25
Target
Maintain and manage
infrastructure, assets, and facilities
responsibly and transparently
Strategic Goal: Public Stewardship
SSOs per 100 miles of
sewer main 6.8 10 0 0
Breaks/leaks per 100
miles of water main 8.89 10 <13.4 <13.4
Provide the Community with High
Quality and Reliable Service
Strategic Goal: Public Service
Recycled Water
Delivered (AF) 276.92 260 300 330
Minimize Customer
Shut-Off for
Nonpayment
69 400 <450 <450
4 2021-22 shut-offs are low because of a moratorium on utility shut-offs through December 31, 2022.

Table B-5:
4 Financial Plan Page 266

Budget at a Glance
Water Fund
Water Fund
The Water Fund supports the activities needed to provide approximately two billion gallons of treated water to the community each year. This includes operations and
maintenance, infrastructure replacement, debt service
payment, and reimbursement to the City’s general fund for internal services provided by departments such as the Human Resources Department, City Attorney’s Office, Finance
Department, and Public Works Department1. Water sales,
base charges, sales to Cal Poly, and other miscellaneous utilities-related fees comprise over 90% of forecasted
revenues.

General fund revenue, such as property tax and sales tax, do not support water-related operations.

Over the past few years, water demand has remained relatively constant, with weather patterns having minimal impact on overall water demand and corresponding water fund revenues. Minor increases in the number of water customer accounts have offset the reductions in revenue from water conservation improvements and behavioral changes associated with three consecutive years of drought. However, the fund has experienced extraordinary increases in the cost of operations, which have largely been driven by external factors that are not a result of operational modifications. Some of the significant drivers for expenditure increases include:

1. $1.3 million increase in the cost of electricity
between FY21-22 and FY23-24

2. Approximately $238,000 increase in the cost
of chemicals between FY21-22 and FY23-24

3. A 29% increase in the California Construction
Cost Index between Feb-2021 and Feb-2023

4. Approximately $665,000 in increases in the
cost of staffing between FY21-22 and FY23-24
1 Cost Allocation Plan: All of the City's general government and engineering programs are accounted and budgeted for in the General Fund. However, some of these support service programs also benefit the City's enterprise operations, and accordingly, payments are made from these funds to reimburse the General Fund for these services.

The payments are based on a Central Service Cost Allocation Plan prepared for this purpose, which distributes these shared costs in a uniform, consistent manner in accordance with Generally Accepted Accounting Principles.

The slight long-term growth in revenue from
customer base increase and the moderate rate Figure B-6: Electricity Costs - Water Fund increases that have been approved in the past few
years are not sufficient to offset the elevated external cost increases experienced in the current financial plan. This imbalance in anticipated revenues and projected expenditures has resulted in the department requiring a revenue increase averaging 8.5 percent across all water fund customer classes in FY2023-24 and 7.5 percent in FY2024-25.

Financial Plan Page 267

Budget at a Glance
Water Fund
2023-25 Financial Plan
Key Assumptions
When preparing the budget, the Water Division
analyzes past financial results, reviews upcoming
operational and capital needs, and current and future
debt obligations to assess the financial position of the fund for its continued health. The budget prepared for
the two-year financial plan follows a “zero based
budgeting” approach, considering each line item and
its future needs. Asset condition, infrastructure age,
and future capacity needs are driving factors in
determining the Capital Project plan and debt
financing evaluations.

The needed revenue to cover the assessed expensesis then evaluated based on current rates and revenue levels, analysis of current water use and effects on future revenue potential to provide a rate recommendation and possible increases.

FUND REVENUES
As an enterprise fund, the Water Fund finances its operation mainly with rates charged for water services.

According to its mandate, rates must be sufficient to cover operations, capital asset improvements and maintenance, debt obligations, and appropriate reserve levels to keep the fund healthy and prepared for unforeseen and future funding needs. Revenues are collected from multiple sources which include:
• Water Service Charges comprised of a base fee and per-unit volumetric charges • Sales to Cal Poly
• Development Impact Fees
• Miscellaneous charges such as account set-up fees, late charges, meter sales, and connection fees • Investment and Property Revenue
Financial Plan Page 268

Budget at a Glance
Water Fund
Table B-7: Revenue Forecast*
Water Rate Increase
The Water Fund will be requesting an overall fund-level revenue increase of 8.5 percent effective July 1, 2023, and 7.5 percent effective July 1, 2024. Proposed rate increases are higher than historic averages and are largely necessitated by macroeconomic conditions, noted above, which have resulted in increased operational and capital delivery costs. The proposed water rate increases were developed through a rate study conducted by an independent consultant and are primarily driven by general inflation and industry specific commodity pricing increases that have far outpaced general inflation levels. The overall fund-level rate increases of 8.5 percent and 7.5 percent referenced above represent the percentage increase in rate revenue required by the water fund as a whole, not the specific increase that a customer may receive.

Actual rate increase percentages for customers vary based on customer account classification. The proportional share of the overall rate increases was determined by the City’s rate consultant through a cost of services study. A cost of services study is based on actual water use characteristics of the City’s different classifications of customers such as single family, multifamily, non-residential, and irrigation customers. These specific use characteristics help determine the proportional share of water revenue that should be collected from each customer class to offset their actual impacts on department expenditures.

Revenue Account
2021-22
Actuals
2022-23
Budget
2023-24
Projected
2024-25
Projected
Charges for Service
46102-Development Review Fees 21,632 26,000 26,000 26,000 46701-Sales to Cal Poly 1,140,230 1,044,673 1,106,029 1,183,946 46702-Water Sales 16,109,633 16,328,641 17,716,575 19,045,319 46703-Utilities Base Charges 5,614,817 5,754,284 6,243,398 6,711,653 46704-Reclaimed Water Sales 1,210,288 1,080,097 995,481 1,161,104 46708-Utilities Set-up Fees 176,668 130,000 60,000 60,000 46709-Other Utilities Charges 1,000 25 1,000 1,000
46712-Low Income Subsidy (100,000) (14,617) (100,000) (100,000) 46713-Cal Poly Capacity & Resilience 114,317 259,490 251,072 263,433 46799-Use of COVID Rate Relief Program (contra-revenue) (225,016) - - - Other Revenue
43201-Miscellaneous Penalties 142,621 118,000 118,000 118,000 45204-Prop 1B Revenue 1,621,599 265,949 - -
45211-Other State Grants - 697,500 697,500 -
45307-Federal Stimulus Grants 226,994 - - -
47003-Miscellaneous 49,062 - - -
42112-Other City Licenses & Permits 40,320 -
44101-Interest on Investment 206,971 50,000 50,000 50,000 44107-Investment FMV Adjustment (956,369) - - -
44301-Sale of Surplus Property 2,155 - - -
44305-Damage to City Property 9,514 -
44306-Credit Collections 14,000 2,817 14,000 14,000
44310-Miscellaneous Revenue 30,900 20,000 20,000 20,000 Total $25,524,560 $25,605,018 $27,283,672 $28,554,454
*Excludes debt proceeds.

Financial Plan Page 269

Budget at a Glance
Water Fund
Due to water use characteristics changing over time, likely exacerbated by societal changes commencing from the Covid-19 pandemic, and ongoing drought, some customer classifications will see rate increases larger than overall fund-level need (8.5 percent and 7.5 percent), while others may see lesser rate increases or a decrease in rates.

An additional driver of the higher-than-average proposed rate increases was the deferral and reduction of rates in FY20-21. A FY19-20 – FY20-21 rate study identified that in order to maintain existing operations a 5.5 percent water rate increase was necessary in FY19-20 and an additional 5.5 percent increase was necessary in FY20-21. While the FY19-20 increase was applied in full, and as scheduled, the FY20-21 increase was deferred from July of 2020 to February of 2021 and the originally approved amount of 5.5 percent was reduced to 3.6 percent.

This deferral and rate reduction was done to address the uncertainties the community was experiencing during COVID-19. The Utilities Department estimates that the deferral and reduction of the FY20-21 rate increase has resulted in a $1.4 million in reduction in revenue between July 2020 and June 2022, versus what would have been collected had the rate increase been applied in full on July 1, 2021.

In accordance with Proposition 218, the proposed rate increases will be subject to a public notification and protest process. The public hearing is scheduled to be held during the June 6, 2023, City Council meeting. The proposed rates, if adopted, will add increased long-range stability to revenues and are necessary to meet future infrastructure replacement and operational funding needs.

Table B-8: Proposed and Forecasted Water Rate Revenue Increases 2023-24 Proposed 8.5%
2024-25 Proposed 7.5%
2025-26 Forecasted 7.5%
2026-27 Forecasted 4.5%
2027-28 Forecasted 4.5%
Rate Assistance Program
Proposition 218 does not allow consumption or base rate charges billed to a customer to be utilized for anything but the cost to deliver services. Consequently, the Utilities Department is unable to use rate funds to provide low-income assistance programs. However, given that constraint, the City uses late fees paid by utilities customers who do not make their payments on time, to fund its customer assistance program. Eligible participants2 enrolled in the customer assistance program receive a 15% discount on their water and sewer bill.

There are currently 142 customers enrolled in the customer assistance program. The Utilities Department has utilized billing inserts, social media, City Council meetings, and radio advertising to increase awareness of the program. The Utility Billing section is also examining how the program requirements may be modified to better support low-income customers through outreach and consultation with the City’s DEI Manager.
2 A customer is eligible to receive rate assistance if they receive CalWORKs, CalFresh, Supplemental Social Security, or Veteran Survivor’s Pension Benefits. A customer may also be eligible if they declare their household income to be less than twice the federal poverty rate.

Financial Plan Page 270

Budget at a Glance
Water Fund

FUND EXPENDITURES
Operating Programs
Water Fund operating expenditure budgets are comprised of salaries, employee benefits, and other operating expenditures such as contract services, chemicals, and electricity. The Water Fund operating program budgets are summarized below. The summary reflects the operating program budget amounts for fiscal years 2023-24 and 2024-25.

Table B-10: Program Enhancements Detail
Table Water Fund SOBCs 2023-24 2024-25
1 5-Year TPS Cla-Val Service (One-time) $ - $ 10,000
This is a periodic service on an automatic control valve at the Water Treatment Plant. Service is recommended every five years.
2 Chemtrac Chlorine Analyzers Probes/Parts (Ongoing) $ 16,800 $ 16,800 This equipment purchase will increase operational intelligence by optimizing analysis of chlorine dosing more reliably and efficiently. Automated chlorine analyzer tips need to be replaced annually. There are 4 analyzers total (+2 for stock) at $2,800/tip. 3 Dell or Ipads for Hach WIMS (One-time) $ 7,500 $ -
This is a one-time cost to facilitate the digitization of WTP operations. 4 Department wide strategic plan (One-time) $ - $ 27,000 The department wide strategic plan is needed to better asses and direct work efforts to optimize performance. Currently includes SWR (10%), Sewer (45%), and Water (45%). May include Stormwater at a future date.
5 Front Gate Controller Replacement (One-time) $ 20,000 $ - This item is needed to manage access and security to the Water Treatment Plant. 6 Needed Lab upgrades (One-time) $ 16,000 $ -
Lab Compliance and Time Efficiency Recommendations per audit by the Water Quality Lab.

These upgrade include a new automated titration unit for alkalinity and hardness. This will result in more accurate results and will save ~0.5 staff hours daily. 7 New Contract - Engineering Technician I-III (One-time) $ 43,448 $ 43,034 Table B-9: Operating Expenses
2021-22
Actuals
2022-23
Budget
2023-24
Projected
2024-25
Projected
6001-Water Administration/Engineering 1,209,004 $ $ 1,348,534 $ 1,486,713 $ 1,579,212 6002-Water Source of Supply $ 9,544,384 $ 10,818,843 $ 11,779,859 $ 12,101,484 6003-Water Treatment $ 3,169,856 $ 3,461,885 $ 4,231,823 $ 4,435,250 6004-Water Distribution $ 1,931,596 $ 1,859,657 $ 2,037,856 $ 2,088,658 6005-Water Resources $ 500,607 $ 571,228 $ 633,999 $ 623,080 6105-Utility Billing $ 265,660 $ 308,054 $ 324,425 $ 345,973 Non-Departmental $ 2,138 $ 131,872 $ 2,875 $ 3,000
Total $ 16,623,245 $ 18,500,074 $ 20,497,550 $ 21,176,658 Financial Plan Page 271

Budget at a Glance
Water Fund
Water Fund SOBCs 2023-24 2024-25
To better support water and sewer operations, the addition of an Engineering Technician I-III in Financial Plan 2023-25 is recommended. This position will benefit the City by performing the following entry level Engineering work and supporting the division during a time of peak workload. The cost of this position will be split between Water, Sewer, and Whale Rock Funds. 9 New Contract - Water Treatment Intern; GIS Intern (One-time) $ 60,000 $ 60,000 The Utilities Department is in the process of digitizing records and operations, including bringing the WTP into GIS. This position would support data digitization efforts at the WTP and Water Distribution section, as well as coordinating with existing GIS staff to improve data quality and processes.
10 Reclassification - Water Resources Technician (Ongoing) $ 19,636 $ 20,225 Reclassification of the two existing water resources technician positions is needed in order to add a new job description and classification for "Water Resources Specialist - Recycled Water & Cross Connection Control" and "Water Resources Specialist - Water Conservation and Groundwater Management".
11 Tanglewood MCC Display Screen Replacement (One-time) $ 8,000 $ - This is a one-time cost to replace an computerized equipment control screen that needs to be replaced because of water damage.

Total $191,384 $177,059
Capital Improvement Plan
Infrastructure maintenance and replacement continues to be a top Water Fund priority. Both the City’s source water and drinking water infrastructure are aging and require continual investment to be properly maintained. The amount of work needed to ensure continued service is increasing with source water supplied to the City from reservoirs as far as 50 miles away, then treated and delivered through over 190 miles of publicly owned drinking water pipelines. The Water Fund’s capital improvement program funding requirement is $6,842,477 in 2023-24 and $5,318,758.56 in 2024-25, as presented in the 2023-25 Financial Plan.

Below is a highlight of major 2023-25 Water Fund capital projects:

1. Johnson – Iris to Bishop Water Pipeline Replacement – This project will replace a 16-inch water main that supplies water to over a quarter of the of the City’s residents. This pipeline has a history of failure due to the age of the asset and replacement will ensure continued service delivery to the community. This project will cost $3.3 million in FY23-24.

2. Chorro – Highland to Meinecke 24-inch Pipeline Replacement -- This project will replace a 24- inch water main that supplies water to roughly half of the City. This pipeline is constructed of concrete cylinder pipe which is non-standard in the water distribution system and difficult for staff to repair in a timely manner if damaged. This project will cost $100,000 for design in FY23- 24, and $1.9 million for construction in FY24-25.

3. Water Treatment Plant Roof Replacement – The water treatment plant treats approximately 2 billion gallons of water annually. Due to the damage associated with recent storms, the roof of this facility has leaks that need to be addressed. This project will cost $600,000 in FY23-24. The City is actively working with its insurance provider to attempt to recuperate this expense. Utilities staff are exploring opportunities to utilize insurance or FEMA to aid in cost recovery.

Financial Plan Page 272

Budget at a Glance
Water Fund

4. Reservoir 2 Replacement – Reservoir 2 is the largest treated water storage tank in the City. This asset ensures that the City maintains adequate fire flow and treated water supply for Cal Poly and nearly half of the City. Reservoir 2 is approximately 80 years old and is near the end of its useful life. While the construction phase of this project is planned for FY29-30 and FY30-31, staff anticipate entering the design phase in FY24-25. This project will cost $900,000 in FY24-25 for design work. In all, it is anticipated that this project will cost approximately $19.9 million for design, environmental work, and construction.

Project 2023-24 2024-25 2025-26 2026-27 2027-28
1 879 Roofing Project 50,000
2 Buchon and Santa Rosa 100,000
3 Chorro - Highland to Meinecke 24" Pipeline Repl 100,000 1,900,000 4 Craig, Christina, and Jaycee Pipeline Replacement -
5 EV Charging Stations-879 Morro 50,000
6 Filter Media Replacement and Underdrain Repairs 60,000 250,000 60,000 7 Fleet Replacement: Utilities 60,000 150,000 715,000 995,000 8 Future Public Works Project with Water Contributions 50,000 50,000 9 Highland and UPRR at Cal Poly Pipeline Replacement 850,000 10 IT Replacements - Annual Asset Maintenance Account 32,977 172,259 32,332 18,428 9,168 11 Johnson - Iris to Bishop Pipeline Replacement 3,300,000 12 Orcutt Street - Fernwood to Laurel Pipeline 25,000 675,000 13 Pacific Well - Security Fencing -
14 Patricia, Highland, and La Entrada Pipeline Repl 127,000 1,397,000 15 Recycled Water Pump Station Maintenance 60,000
16 Recycled Water Storage Tank 20,000
17 Reservoir 2 Replacement 900,000 500,000
18 Rockview - Stoneridge to Broad Pipeline Repl 130,000 1,530,000 19 Salinas Reservoir Transfer of Ownership Plan 150,000 20 Santa Rosa - Stenner Creek to Highland 30" Pipeline 230,000 8,230,000 21 SGMA GSP (Groundwater Basin Management) 150,000 150,000 150,000 150,000 22 Source Water Roadmap 90,000
23 Stenner Canyon Waterline Replacement 1,100,000 80,000 24 Tank Farm-Long to Innovation Recycled Water Pipeline 625,000 25,000 25 Tank Maintenance and Cleaning 250,000 50,000
26 UV Bulb Replacement (annual replacement) - 10,000 10,000 10,000 10,000 27 Water Distribution System - Point Repairs 250,000 250,000 250,000 28 Water Meters and Boxes 167,500 171,500 175,000 175,000 175,000 29 Water Storage Tank Maintenance 1,000,000 755,000 127,000 1,100,000 1,100,000 30 Water Treatment Plant - Building Maintenance 650,000 31 Water Treatment Plant - Facility Asset Replacement 245,000 115,000 145,000 140,000 45,000 32 Water Treatment Plant - Major Equipment Maint 189,000 180,000 180,000 180,000 180,000 33 Water Treatment Plant - Water Meter Replacement 10,000 30,000 54,800 34 Water Utility Trench Repair (91147) 280,000 280,000 280,000 280,000 280,000 35 Water Valve Cover Adjustments 276,000 35,000 35,000 35,000 35,000 36 Waterline Abandonment & Connections 50,000 50,000 50,000 50,000 50,000 37 TOTAL 6,845,477$ 5,318,759$ $ 11,979,132 5,826,168$ $ 5,975,428 2023-25 Financial Plan
Table B-11:

Financial Plan Page 273

Budget at a Glance
Water Fund
Debt Service
Table B-12: Debt Issue - Asset Outstanding
Principal
Annual
Payment
Final
Year
2024
2018 Refunding Bond (Dispatch Center3) $234,650 $27,353 2039 2018 Refunding Water Bond (Refund 2006 Bonds) $7,860,000 $888,000 2035 2020 State I-Bank Loan – Water Treatment Plant $11,683,322 $955,039 2040 Total Water Fund Debt $19,777,972 $2,448,846

1. 2018 Refunding Water Bond – This is the water fund’s contribution to construction of the Public Safety Dispatch Center.

2. 2018 Refunding Bond – This bond paid for Water Treatment Plant improvements in 2006.

3. 2020 Infrastructure Bank Loan – This loan is paying for the recent Water Treatment Plant Energy Efficiency Project.

Water Rates
Usage Current Rates Proposed Rates
Effective July 1, 2023
Proposed Rates
Effective July 1, 2024
Single-Family (three tiers)
Tier 1: 0 to 5 units $6.90 $7.94 $8.54
Tier 2: 6 to 12 units $8.04 $9.16 $9.84
Tier 3: 13+ units $14.74 $15.79 $16.97
Multi-Family (all use) $7.88 $8.91 $9.58
Non-Residential (all use) $9.57 $9.43 $10.14
Landscape (all use) $11.73 $9.63 $10.35
Monthly Base Fee Current Rates4 Proposed Rates
Effective July 1, 2023
Proposed Rates
Effective July 1, 2024
Residential $24.12 $28.15 $30.25
Multi-Family, Non-Residential, and Landscape by Water Meter Size:
¾ inch or less $24.12 $28.15 $30.25
1-inch meter $40.28 $47.00 $50.50

1.5-inch meter $80.38 $93.75 $100.80
2-inch meter $128.61 $150.05 $161.30
3-inch meter $241.31 $281.50 $302.60
4-inch meter $402.24 $469.25 $504.45
6-inch meter $804.30 $935.25 $1,008.60
8-inch meter $1,286.92 $1,501.25 $1,613.85
Water System Access Charge5 $93.02 $100.93 $108.50
3 This amount represents a portion of the debt that is attributable to the water fund that was part of an overall refinanced debt amount.
4 Current rates effective February 1, 2021 (deferred from July 2020) 5 This charge applies where the City provides fire protection only to businesses that utilize a private well for domestic purposes.

Table B-13:

Table B-14:

Financial Plan Page 274

(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 B-15: Water Fund Five Year Forecast
Financial Plan Page 275

Operating Budget Water Administration
Water Fund Utilities
Water Administration
Program Description
The Water Fund’s Administration Program provides guidance and direction for the effective management of all the Water Fund’s programs. The Water Administration Program evaluates and provides strategic and long-term planning, rate setting and funding, and engineering and capital plan development for the City’s water system. Program goals are 1) efficient management and achievement of Water Enterprise Core Services and Objectives and 2) well-planned and effectively delivered capital improvement project implementation.

Core Services & Objectives
 Provide Department Administration and Leadership.
 Continue developing and implementing operational efficiencies.  Monitor Water Enterprise Fund financial condition and recommend rates and revenues needed to support program and service objectives.
 Administer Capital Improvement project management and planning activities.  Continue implementation and tracking of strategic planning activities.  Continue safety assessments and ensure compliance with safety regulations.  Manage water-related public outreach and communication efforts.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $900,734 $828,267 $1,013,698 22% $1,062,840 5% Contract Services $40,531 $78,700 $70,071 -11% $98,158 40% Other Operating Costs $267,738 $441,567 $402,743 -8% $418,214 4% Total Program $1,209,004 $1,348,534 $1,486,713 10% $1,579,212 6% Challenges and Opportunities
In 2023-25, the Water Administration section intends to focus efforts on delivery (design and construction) of major capital improvement and long-term planning projects. Projects such as the Water Treatment Plant Infrastructure Renewal Strategy, groundwater pumping program, and Reservoir 2 replacement project will require substantial design, planning, and construction. Staff will also need to be very engaged in the financing for these projects, especially as service and construction costs have escalated rapidly in recent years.

While operational costs have also increased substantially in the past two years, especially costs related to chemicals and electricity, opportunities exist to identify increased efficiencies and new ways of doing business with respect to operations as well as opportunities to utilize automation to decrease ongoing operating costs, thus alleviating the rate burden on the water fund rate payer.

Table B-16:

Financial Plan Page 276

Operating Budget Water Source of Supply
Water Fund Utilities
Water Source of Supply
Program Description
The Water Source of Supply program procures raw water from the City’s three primary surface sources:

Whale Rock Reservoir, Salinas Reservoir (Santa Margarita Lake), and Nacimiento Reservoir, to provide a dependable supply of raw water for treatment at the City’s water treatment plant. Additional sources of supply include highly treated recycled water from the City’s Water Resource Recovery Facility that is used for irrigation and other approved purposes, and groundwater supplies that are currently being redeveloped and expanded.

Core Services & Objectives
 Deliver raw water supplies in a reliable, cost-effective manner.  Operate, maintain, and repair supply facilities.
 Maximize production and use of recycled water.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $187,745 $173,151 $181,649 5% $189,330 4%
Contract Services $8,457 $27,415 $16,500 -40% $16,500 0% Other Operating Costs $9,348,182 $10,618,277 $11,581,709 9% $11,895,653 3% Total Program $9,544,384 $10,818,843 $11,779,859 9% $12,101,484 3% Opportunities and Challenges
For many years the Source of Supply program has focused its efforts on expanding surface water supplies to meet City water needs. Surface water supplies are currently maximized so the department is focusing efforts on expansion of recycled water supplies as well as reestablishment of its groundwater pumping program. Expansion of these alternative supplies will help alleviate demand on the City’s surface water supplies and will provide the department with additional sources of supply to combat drought and climate change. More details about the expansion of these water supplies can be found in the Water Resources program narrative.

Due to recent storms, the Whale Rock pipeline experienced a minor landslide that will require repair once conditions dry out adequately. Additionally, approximately 800 feet of the Nacimiento pipeline line was damaged by flood flows within the Salinas River. The County of San Luis Obispo, who is responsible for management of the Nacimiento pipeline anticipates that the City’s portion of repair costs will be between $165,000 - $332,000 after reimbursement is provided by FEMA. If the project is deemed ineligible for FEMA assistance, the City’s portion of the cost is estimated to range from $662,000 to $1,325,000.

Table B-17:

Financial Plan Page 277

Operating Budget Water Treatment
Water Fund Utilities
Water Treatment
Program Description
The Water Treatment program receives raw water from three surface reservoirs, treats it to meet potable water standards, and delivers it into the water distribution system. The Water Treatment Plant produces approximately five million gallons of potable water per day for the City of San Luis Obispo and Cal Poly. The program goal is to provide an adequate water supply, treated to State and Federal standards, for domestic consumption and fire suppression.

Core Services & Objectives:
• Protect public health - Continue to provide uninterrupted supply of high-quality water to the distribution system.
• Continue to meet all treatment standards as required by Environmental Protection Agency (EPA), State Water Resource Control Board’s (SWRCB) Division of Drinking Water, and other regulatory agencies.
• Continue with succession planning goals through development of standard operating procedures, an internship program, etc.
• Continue development of computerized maintenance database and work order system. • Continue development and implementation of Capital Improvement Projects.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,930,767 $1,794,669 $2,049,235 14% $2,143,847 5% Contract Services $293,921 $340,860 $397,270 17% $421,620 6% Other Operating Costs $945,166 $1,326,356 $1,785,317 35% $1,869,783 5% Total Program $3,169,856 $3,461,885 $4,231,823 22%1 $4,435,250 5% 1 Over 9% of the increase in operating expenses are attributable to increased electricity costs. About 5% is attributable things like increased chemical, construction, and machinery costs. An additional 6.5% are due to increased staffing expenditures authorized by Resolution No. 11316 and 11379 to better align with industry standards.

Table B-18
Financial Plan Page 278

Operating Budget Water Treatment
Water Fund Utilities
Opportunities and Challenges
Beginning in 2022-23, staff began production of the Water Treatment Plant Infrastructure Renewal Strategy. The majority of the production of this study will take place in during the 2023-25 Financial Plan, where staff will identify and prioritize future Water Treatment Plant improvements needed to optimize operations and improve treatment plant reliability. Additionally, this plan will address methods for controlling ongoing cost increases related to staffing, chemical use, and electricity use.

Due to the damage associated with recent storms, the roof at the Water Treatment Plant has leaks that require repair. Due to the unique construction of the roof, it has been recommended that the roof of the facility be repaired. Replacement of the Water Treatment Plant roof is estimated to cost $600,000 and is budgeted to occur in FY23-24. The City is actively working with its insurance provider to attempt to recuperate this expense. Utilities staff are exploring opportunities to leverage insurance or FEMA to aid in cost recovery.

Continued challenges in the water treatment section include controlling escalating chemical and electricity costs while ensuring compliance with new water quality regulations and optimizing source water use. While the treatment plant receives water from three local reservoirs, each reservoir has unique water quality characteristics that require proper planning and treatment strategies to ensure regulatory compliance. Additionally, treatment plant staff are critical in the City’s optimization of its surface water supplies for long-term sustainability. Utilization of water from Nacimiento Lake will continue to be the focus of treatment plant staff moving forward, preserving water stored in Salinas Reservoir and Whale Rock Reservoir.

Financial Plan Page 279

Operating Budget Water Distribution
Water Fund Utilities
Water Distribution
Program Description
The Water Distribution Program is responsible for the delivery of potable water from the Water Treatment Plant and wells to system users and fire hydrants via 12 water storage facilities, seven pump stations, and approximately 180 miles of water mains. The Water Distribution Program also delivers recycled water from the Water Resource Recovery Facility to landscape irrigation users via approximately 13 miles of recycled water mainlines (purple pipelines). Program staff collaborates with Public Works to design, construct, and commission capital improvement projects. The program goal is uninterrupted water flow at adequate pressure with minimum water leakage.

Core Services & Objectives:
• Continue the water distribution system improvements in accordance with the Capital Improvement Plan.
• Design, construct, and implement the recommendations in the Water System Improvement Plan. • Maintain compliance with all applicable regulations and protect public health. • Conduct preventative maintenance programs to reduce infrastructure life-cycle costs while reducing the likelihood of leaks and breaks that result in water outages for City residents and businesses.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,614,191 $1,453,639 $1,594,946 9% $1,652,330 3% Contract Services $83,719 $98,515 $111,415 13% $111,915 1% Other Operating Costs $233,685 $307,503 $331,495 8% $324,412 -2% Total Program $1,931,596 $1,859,656 $2,037,856 10% $2,088,658 2% Challenges and Opportunities:

The Water Distribution section operations are forecasted to be impacted by the large amount of development occurring within the City. The section intends to focus efforts on ensuring safe and orderly expansion of water distribution infrastructure while ensuring that existing customers are minimally impacted by water distribution system expansion.

In addition to system expansions due to new development, the section will be leading several Capital Improvement projects to decrease asset age, increase fire flow capacity, and reduce the likelihood of water outages within the community. These projects include replacement of the floating cover on Reservoir 2, replacing an aging 16-inch water line on Johnson Avenue, replacing an 18-inch concrete cylinder pipeline on Chorro Street, and beginning design for the future replacement of Reservoir 2.

Ongoing challenges in the section include managing a complex network of distribution pipelines where many pipelines are approaching the end of their useful lifespans and meeting new regulatory requirements from the State associated with Water Loss Metrics and Lead Service Line Identification.

Table B-19:

Financial Plan Page 280

Operating Budget Water Resources
Water Fund Utilities
Water Resources
Program Description
The Water Resources program coordinates the planning, development, implementation, and regulatory reporting for programs and services related to water use projections, recycled water, water conservation, and groundwater pumping.

Core Services & Objectives:
• Increase water conservation and water use efficiency opportunities within the community. • Implement water conservation programs in alignment with California’s goals for making water conservation a way of life.
• Monitor development trends and City growth and ensure water resources are available. • Implement safe and sustainable use of recycled water for irrigation use. • Expand the use of groundwater as a source of supply through groundwater quality and availability related studies and projects.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $441,325 $494,978 $560,149 13% $548,830 -2%
Contract Services $15,378 $8,200 $8,300 1% $8,400 -1%
Other Operating Costs $43,903 $68,050 $65,550 -4% $65,850 0% Total Program $500,607 $571,228 $633,999 11% $623,080 -2% Challenges and Opportunities
During 2023-25 the Water Resources section will have the opportunity to directly contribute to the expansion of the City’s groundwater pumping program, as the City has been preliminarily approved for a $5.9M grant to construct and equip groundwater wells sufficient to pump and treat approximately 600 acre-feet of groundwater each year. This project will result in an increase in available water supply for the City while simultaneously removing and treating a localized plume of contaminated groundwater.

Challenges for the section include implementation of new statewide water conservation regulations and implementing appropriate conservation measures that are embraced by the community coming off a winter of rainfall that fully replenished the City’s water supplies.

Table B-20:

Financial Plan Page 281

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blank.

Financial Plan Page 282

Budget at a Glance
Sewer Fund
Sewer Fund
The Sewer Fund supports the activities needed to
treat approximately 1.1 billion gallons of
wastewater from the community each year. This
includes operations and maintenance,
infrastructure replacement, debt service, and
reimbursement to the City’s general fund for
internal services provided by departments such as
the Human Resources Department, City Attorney’s
Office, Finance Department, and Public Works
Department1. Sewer service charges, base charges,
including Cal Poly, and other miscellaneous utilitiesrelated fees comprise over 95% of forecasted revenues. General fund revenue, such as property
tax and sales tax, do not support sewer-related operations.

Over the past few years, wastewater flows have remained relatively constant. Minor increases in the number of sewer customer accounts have offset the reductions in revenue from water conservation improvements and behavioral changes associated with three consecutive years of drought. However, the fund has experienced extraordinary increases in the cost of operations, which have largely been driven by external factors that are not a result of operation-level program changes. Some of the significant drivers for
expenditure increases include:

1. $259,000 increase in the cost of electricity
between FY21-22 and FY23-24

2. A 29% increase in the California Construction
Cost Index between Feb-2021 and Feb-2023

3. Approximately $535,000 in increases in the
cost of staffing between FY21-22 and FY23-24
The slight long-term growth in revenue from customer
base increase and the moderate rate increases that
have been approved in the past few years are not
sufficient to offset the elevated external cost increases experienced recently. This imbalance in anticipated revenues and projected expenditures has resulted in the department requiring a revenue increase averaging four percent across all sewer fund customer classes in FY23-24 and four percent in FY24-25.
1 Cost Allocation Plan: All of the City's general government and engineering programs are accounted and budgeted for in the General Fund. However, some of these support service programs also benefit the City's enterprise operations, and accordingly, payments are made from these funds to reimburse the General Fund for these services.

The payments are based on a Central Service Cost Allocation Plan prepared for this purpose, which distributes these shared costs in a uniform, consistent manner in accordance with Generally Accepted Accounting Principles.

Figure 1: Electricity Costs - Sewer Fund
Financial Plan Page 283

Budget at a Glance
Sewer Fund
2023-25 Financial Plan
Key Assumptions
When preparing a new budget, the Wastewater Division analyzes the Sewer Fund’s past financial results, upcoming operational and capital needs, current and future debt obligations, and the financial outlook of the fund ten years into the future. The financials prepared for the two-year financial plan follows a “zero based budgeting” approach, considering each line item and its future need anew. The condition, infrastructure age, and future capacity needs are driving factors in determining the Capital Project plan presented in this report and influence the assessment of debt issuance needs. This forms the base for the evaluation of required revenue and the rate levels needed to support ongoing operation for sewer operations including the collection and treatment of wastewater.

FUND REVENUES
As an enterprise fund, the Wastewater Division finances its operation mainly through rates charged for sewer services. Additional revenue is collected from development impact fees, and sewer account related charges. In accordance with its mandate, sewer rates need to be sufficient to cover operation, capital asset improvements and maintenance, debt obligations, and appropriate reserve levels to keep the Sewer Fund healthy and prepared for unforeseen and future funding needs. Sewer Fund revenue is collected from multiple sources which include:
• Sewer Service Charges, including a base fee and volumetric charge per unit • Sales to Cal Poly
• Development Impact Fees
• Industrial User Fees
• Miscellaneous charges such as account set-up fees, late charges, meter sales, and connection fees.
• Investment and Property Revenue
Financial Plan Page 284

Budget at a Glance
Sewer Fund
Table B-21: Revenue Forecast
Sewer Rates Increase
The Sewer Fund will be requesting an overall fund-level rate increase of four percent effective July 1, 2023 and four percent effective July 1, 2024. Proposed rate increases are largely necessitated by macroeconomic conditions which have resulted in increased operational and capital delivery costs. The proposed sewer rate increases were developed through a rate study conducted by a third-party consultant and are primarily driven by general inflation and industry specific commodity pricing increases that have far outpaced general inflation levels.

The overall fund-level rate increases of four percent and four percent referenced above represent the percentage increase in rate revenue required by the sewer fund as a whole, not the specific increase that a customer may receive. Actual rate increase percentages for customers vary based on customer account classification. The proportional share of the overall rate increases was determined by the City’s rate consultant through a cost of services study. A cost of services study is based on actual sewer use Revenue Account 2021-22
Actuals
2022-23
Budget
2023-24
Projected
2024-25
Projected
Charges for Services
46102-Development Review Fees 21,608 26,000 26,000 26,000 46104-Sewer Wye Abandonment and Installation Fees 5,220 - - - 46701-Sales to Cal Poly 1,146,613 1,026,452 1,012,594 1,007,838 46703-Utilities Base Charges 4,892,901 4,815,655 5,008,281 5,208,612 46705-Sewer Service Charges 13,341,764 12,792,082 13,303,765 13,835,916 46708-Utilities Set-up Fees 204,924 60,000 60,000 60,000 46709-Other Utilities Charges 9,253 70,000 1,000 1,000
46712-Low Income Subsidy (13,437) (100,000) (100,000) (100,000) 46713-Cal Poly Capacity & Resilience 243,568 243,568 472,534 472,534 Fines, Forefeitures, and Penalties
43201-Miscellaneous Penalties 142,652 120,000 118,000 118,000 43302-Administrative Citations - General 300 - - -
43303-Administrative Citations - Utilties 2,425 - - -
Other Revenue
45211-Other State Grants 1,386,153 95,308 1,386,153 -
45307-Federal Stimulus Grants 2,105 - - -
47003-Miscellaneous 53,156 - - -
42007-Other Licenses and Permits 434 - - -
42105-Industrial User Permits 86,468 85,000 85,000 85,000 44101-Interest on Investment 257,481 50,000 50,000 50,000 44107-Investment FMV Adjustment (1,293,234) - - -
44301-Sale of Surplus Property 25,100 - - -
44305-Damage to City Property 1,233 -
44306-Credit Collections 2,817 10,000 14,000 14,000
44310-Miscellaneous Revenue 61,723 20,000 20,000 20,000 Total $ 19,290,381 $ 20,604,910 $ 21,457,327 $ 20,798,900 *Excludes debt proceeds.

Financial Plan Page 285

Budget at a Glance
Sewer Fund
characteristics of the City’s different classifications of customers such as single family, multifamily, and non-residential customers. These use characteristics help determine the proportional share of sewer revenue that should be collected by each customer class to offset their actual impacts on department expenditures. Due to sewer use characteristics changing over time, likely exacerbated by societal changes commencing from the Covid-19 pandemic and ongoing drought, some customer classifications will see rate increases larger than overall fund-level need (four percent and four percent), while others may see smaller rate increases.

An additional driver of the proposed rate increases was the deferral and reduction of rates in FY20-21. A FY19-20 – FY20-21 rate study identified that in order to maintain existing operations a 5.5 percent sewer rate increase was necessary in FY19-20 and an additional five percent increase was necessary in FY20-21.

While the FY19-20 increase was applied in full and as scheduled, the FY20-21 increase was deferred from July of 2020 to February of 2021 and the originally approved amount of percent was reduced to 3.6 percent. This deferral and rate reduction was done out of an abundance of caution as the community was experiencing impacts from the Covid-19 pandemic. The Utilities Department estimates that the deferral and reduction of the FY20-21 rate increase has resulted in $856,000 reductions in revenue between July 2020 and June 2022, versus what would have been collected had the rate increase been applied in full on July 1, 2021.

In accordance with Proposition 218, the proposed rate increases will be subject to a public notification and protest process. The public hearing is scheduled for the June 6, 2023, City Council meeting. The proposed rates, if adopted, will add increased long-range stability to revenues and are necessary to meet future infrastructure replacement and operational funding needs.

Table B-22: Proposed and Forecasted Sewer Rate Revenue Increases 2023-24 Proposed 4%
2024-25 Proposed 4%
2025-26 Forecasted 4%
2026-27 Forecasted 4%
2027-28 Forecasted 3.5%
Rate Assistance Program
Proposition 218 does not allow consumption or base rate charges billed to a customer to be utilized for anything but the cost to deliver services. Consequently, the Utilities Department is unable to use rate funds to provide low-income assistance programs. However, like the Water Fund, the Sewer Fund uses late fees paid by utilities customers who do not make their payments on time to fund the customer assistance program. Eligible participants2 enrolled in the customer assistance program receive a 15% discount on their water and sewer bill.

There are currently 142 customers enrolled in the customer assistance program. The Utilities Department utilized billing inserts, social media, Council meetings, and radio advertising to increase awareness of the program. The Utility Billing section is also examining how the program requirements may be modified to better support low-income customers.
2 A customer is eligible to receive rate assistance if they receive CalWORKs, CalFresh, Supplemental Social Security, or Veteran Survivor’s Pension Benefits. A customer may also be eligible if they declare their household income to be less than twice the federal poverty rate.

Financial Plan Page 286

Budget at a Glance
Sewer Fund

FUND EXPENDITURES
Operating Programs
Sewer Fund operating expenditure budgets are comprised of salaries, employee benefits, and other operating expenditures such as contract services, chemicals, and electricity. The Sewer Fund operating program budgets are summarized below. The summary reflects the operating program base budget amounts for fiscal years 2023-24 and 2024-25.

Table B-24: Program Enhancement Detail
Sewer Fund SOBCs 2023-24 2024-25
1 Department wide strategic plan (One-time) $ - $ 27,000 The department wide strategic plan is needed to better asses and direct work efforts to optimize performance. Currently includes SWR (10%), Sewer (45%), and Water (45%). May include Stormwater at a future date.
2 New Contract - Engineering Technician I-III (One-time) $ 54,311 $ 53,792 To better support water and sewer operations, the addition of an Engineering Technician I-III in Financial Plan 2023-25 is recommended. This position will benefit the City by performing the following entry level Engineering work and supporting the division during a time of peak workload.

The cost of this position will be split between Water, Sewer, and Whale Rock Funds. 3 New Contract - Intern $ 89,652 $ 93,057
To better support sewer operations, it is recommended that the Utilities Department add a Wastewater Intern in Financial Plan 2023-25. The position will benefit the City by creating a candidate pool for future WRRF Operator and other related Utilities positions, creating opportunities for future wastewater professionals to obtain the required 1,800 hours of time spent in a facility, and providing supplemental support to meet regulatory requirements. 4 SSMP Review Services $ 14,000 $ (1,000)
The Sewer System Management Plan is required every five years. The department has been maintaining a modest budget ($1,000) for updates as pertinent on off cycle years. 5 UV Bulbs for Disinfection $ 18,000 $ 18,000
This is being moved from CIP to operating expenditures.

Total $ 175,963 $ 190,849
Table B-23: Operating Expenses 2021-22
Actuals
2022-23
Budget
2023-24
Projected
2024-25
Projected
6101-Wastewater Admin and Eng $ 1,366,330 $ 1,390,945 $ 1,583,037 $ 1,691,475 6102-Wastewater Collection $ 1,335,349 $ 1,331,027 $ 1,486,752 $ 1,539,435 6103-Environmental Programs $ 264,537 $ 282,237 $ 319,106 $ 326,027 6104-Water Resource Recovery $ 3,914,610 $ 4,182,465 $ 4,659,977 $ 4,830,115 6105-Utility Billing $ 272,436 $ 310,113 $ 324,425 $ 345,973 6106-Water Quality Lab $ 697,677 $ 832,235 $ 863,822 $ 843,901 Non Departmental $ 1,035 $ 102,654 $ - $ -
Total $ 7,851,974 $ 8,431,676 $ 9,237,119 $ 9,576,926
Financial Plan Page 287

Budget at a Glance
Sewer Fund
Capital Improvement Plan
Infrastructure maintenance and replacement continues to be a top Sewer Fund priority. Based upon aging wastewater infrastructure, the Sewer Fund needs to continue replacement of sewer mainlines to reduce inflow and infiltration into the collection system, reduce scheduled maintenance, increase capacity to allow for development, and reduce wastewater overflows. The Sewer Fund continues work on the Water Resource Recovery Facility (WRRF) upgrade and is also preparing for the costs of near-term projects including the relocation of the Wastewater Collection shop as it is projected to be displaced by the City’s Prado Road Overpass project. The Sewer Fund’s capital improvement program funding requirement is $20,923,401 in 2021-22 and $6,623,483 in 2022-23, as presented at the end of this section.

Below is a highlight of several key 2023-25 Sewer Fund capital projects and their proposed expenditures:

1. WRRF Upgrade Project - The WRRF will continue construction through the 2023-25 Financial Plan with significant construction completed in 2023 and final project completion estimated to be in the first quarter of 2024. This regulatory and asset life cycle driven project is ongoing, with a total construction budget of $140,000,000. Once completed, the new WRRF will be in full compliance with all Local, State and Federal discharge requirements, will have the ability to produce higher quality recycled water, offsite odor impacts will be reduced, and community education elements will be refined.

2. WWC/Wastewater Maintenance Shop – The City’s Prado Road Overpass project will require removal of the existing Wastewater Collections (WWC) maintenance shop and adjoining office spaces, which are located at the northwestern permitter of the City’s Corporation Yard at 25 Prado Road. In addition, new and existing infrastructure under final phases of construction at the WRRF (35 Prado Road) will require additional maintenance and storage facilities. For FY23-24, $6,500,000 has been allocated for design and construction of a new combined wastewater maintenance structure, which will house staff and meet all current and forecasted maintenance and storage requirements for the WWC and WRRF programs. The original scope of this project has been reduced, which was originally proposed as an additive alternate component of the larger WRRF Project (rejected due to bid amount).

3. WRRF Power Cogeneration Upgrade – The new WRRF will replace existing costs associated with legacy chemical treatment with increased electricity usage. In an effort to balance this increased cost and take advantage of the additional biogas produced from the new facility, the City plans to install an additional biogas driven cogeneration unit. For FY23-24, $150,000 has been allocated to design work for this project, and $1,475,000 has been allocated for construction of the new unit in FY25-26.

4. Serrano, Bressi, Dana, and Higuera Pipeline Replacement – This project will replace various sewer mains that are in poor condition or are near capacity. For FY 24-25, $1,300,000 has been allocated for design and construction.

5. Taft, Hathaway, Philips, Buena Vista, and Loomis Pipeline Replacement – This project will replace various sewer mains that are in poor condition. For FY23-24, $1,225,000 has been allocated for construction and design.

Financial Plan Page 288

Budget at a Glance
Sewer Fund

6. Infrastructure Renewal Strategy Update/ Wastewater Collection System Flow study – This project will update the City’s hydraulic model (last completed in 2012) of its wastewater collection system, which is used to determine system capacities and to collect flow data focused on reduction of stormwater infiltration and intrusion (I&I). The updated hydraulic model and corresponding report will serve to update the basis of the lateral offset program and will inform a strategy for mainline sewer replacement projects. Funding of $430,000 was allocated for FY22- 23 for this two-year effort. The final study and report is expected to be completed in 2024.

7. Inflow and Infiltration. Ongoing funding for voluntary sewer lateral replacements and mainline repairs to reduce the Inflow and Infiltration (I&I) of stormwater into the wastewater collection system. Carryover funding from FY22-23 is adequate for this program’s FY 23-34 requirements, and an additional $250,000 is programmed for FY24-25.

Project 2023-24 2024-25 2025-26 2026-27 2027-28
1 879 Roofing Project 50,000
2 Bee Bee - South Street to Sandercock Pipeline Replacement 400,000 3 Broad, Murray, and Chorro Pipeline Replacement 145,000 4 Demolish Old Effluent Structure and Minor Paving 50,000 495,000 5 EV Charging Stations-879 Morro 50,000
6 Fleet Replacement: Utilities 85,000 20,000 40,000 570,000 7 Flow Study -
8 Foothill - Cuesta Sewer Siphon 200,000 250,000 2,750,000 9 Foothill-Chorro Pipeline Replacement 2,750,000 250,000 10 Future Public Works Project with Sewer Contributions 50,000 50,000 11 Inflow/Infiltration Reduction 250,000 250,000 250,000 250,000 12 Infrastructure Renewal Strategy Report Update -
13 IT Replacements - Annual Asset Maintenance Account 54,343 179,806 34,641 9,168 25,524 14 Johnson and Buchon Pipeline Replacement 135,000 2,485,000 15 Morro, Mill, Santa Rosa, Chorro Pipeline Replacement 253,000 16 San Jose, Ramona, Monte Vista, and California Pipeline Repl 1,225,000 17 Screw Press 200,000 3,360,000
18 Serrano, Bressi, Dana, and Higuera Pipeline Replacement 25,000 1,275,000 19 Sewer Lift Station Maintenance 200,000 80,000 80,000 20 Sewer Maintenance Hole Cover Adjustments 180,000 30,000 30,000 30,000 30,000 21 Silver City Lift Station 70,000 100,000 1,980,000
22 Taft, Hathaway, Phillips, Buena Vista, and Loomis Pipeline Repl 1,225,000 23 Trench Repair 25,000 25,000 25,000 25,000 25,000
24 Wastewater Collection System - Point Repairs 120,000 120,000 120,000 25 Water Meters and Boxes 167,500 171,500 175,000 175,000 175,000 26 WRRF - Building Maintenance 150,000 825,000
27 WRRF - Facility Asset Replacement - 125,000 125,000 75,000 200,000 28 WRRF Power Cogeneration Upgrade 150,000 1,475,000
29 WWC Shop 6,500,000
30 Grand Total $ 9,304,843 $ 3,631,306 $ 8,089,641 $ 1,689,168 $ 10,760,524 2023-25 Financial Plan
Table B-25:

Financial Plan Page 289

Budget at a Glance
Sewer Fund
Debt Service
Table B-26: Debt Issue – Asset Outstanding
Principal
Annual
Payment
Final
Year
2024
1 2008 Suntrust Loan $180,000 $183,780 2024
2 2009 State I-Bank Loan - Farm Lift Station $6,304,105 $551,172 2038 3 2014 US Bank Wastewater Lease Agreement $3,395,863 $617,160 2029 4 2018 Refunding Bond (Dispatch Center) $259,350 $30,233 2039 5 2019 SRF Loan – WRRF Upgrade $136,000,000 2054
Total Sewer Fund Debt $146,139,108 $1,382,345

1. 2008 Suntrust Loan – This loan was used to construct the Tank Farm Lift Station and Force Main Project.

2. 2009 Infrastructure Bank Loan – This loan was also used to construct the Tank Farm Lift Station and Force Main Project.

3. 2014 US Bank Lease Agreement – This lease was used to construct energy conservation improvements at the Water Resource Recovery Facility.

4. 2018 Refunding Bond – This is the sewer fund’s contribution to construction of the Public Safety Dispatch Center.

5. 2019 SRF Loan – This loan was used to fund a majority of the upgrade of the Water Resource Recovery Facility. This loan was previously for $140 million, but the City was able to obtain a $4 million debt forgiveness. The first payment will be in FY24-25 for $5,808,792 and will have ongoing payments of $5,902,954.

Financial Plan Page 290

Budget at a Glance
Sewer Fund
Sewer Rates
Usage Current Rates Proposed Rates
Effective July 1, 2023
Proposed Rates
Effective July 1, 2024
Single-Family and MultiFamily Residential Per
Unit Cost (Up to Sewer
Cap)3
$9.19 $9.44 $9.82
Non-Residential Per Unit
Cost (for All Water
Consumption)
$9.19 $9.88 $10.27
Monthly Base Fee Current Rates4 Proposed Rates
Effective July 1, 2023
Proposed Rates
Effective July 1, 2024
Single-Family Residential $21.89 $23.58 $24.52
Multi-Family and Non-Residential By Water Meter Size:
¾ inch or less $21.89 $23.58 $24.52
1-inch meter $36.55 $39.37 $40.95

1.5-inch meter $72.86 $78.51 $81.65
2-inch meter $116.63 $125.67 $130.70
3-inch meter $218.63 $235.78 $245.21
4-inch meter $364.78 $393.04 $408.76
6-inch meter $729.34 $785.85 $817.28
8-inch meter $1,166.99 $1,257.40 $1,307.70
10-inch meter $1,677.72 $1,807.71 $1,880.02
3 One Unit = 748 Gallons
4 Current rates effective February 1, 2021 (deferred from July 2020) Table B-27:

Table B-28:

Financial Plan Page 291

(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 B-29: Sewer Fund Five Year Forecast
Financial Plan Page 292

Operating Budget Wastewater Admin & Eng
Sewer Fund Utilities
Wastewater Administration & Engineering
Program Description
The Wastewater Administration & Engineering Program leads, evaluates, and provides guidance and direction for effective resource management for the various wastewater programs. It provides strategic and long-term planning and engineering for wastewater systems, production of recycled water, and water quality laboratory, stormwater, and environmental programs sections. The program goals are 1) efficient management and achievement of wastewater enterprise objectives; 2) well-planned and efficient delivery of capital improvement plans; and 3) protection of environmental and public health by maintaining water quality objectives.

Core Services & Objectives:
 Monitor Sewer Enterprise Fund financial operations and recommend rates and revenues needed to support program and service objectives.
 Continue implementation and tracking of strategic planning activities.  Ensure compliance with water quality regulations.
 Continue safety assessments and ensure compliance with safety regulations.  Continued optimization of program operations.
 Administer capital improvement and planning activities.  Manage wastewater-related public outreach and communication efforts.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,140,283 $999,543 $1,228,834 23% $1,290,622 5% Contract Services $23,801 $53,500 $19,200 -64% $46,200 140% Other Operating Costs $202,245 $337,902 $335,302 -1% $354,653 6% Total Program $1,366,330 $1,390,945 $1,583,037 14% $1,691,475 7% Opportunities and Challenges
In 2023-25, Wastewater Administration and Engineering will continue to focus on supporting housing and climate action Major City Goals as it strategically replaces infrastructure, accommodates risk associated with growth through capacity studies, assesses program workflows to identify areas for increased efficiency, and explores additional energy efficiency measures including additional on-site self-generation of power at the Water Resource Recovery Facility (WRRF). The Water Quality Lab and Environmental Programs will continue to see increased focus as stormwater and wastewater regulations become more stringent, and new regulatory permits are issued. The Water Quality Lab will continue to seek insights from wastewater surveillance, including but not limited to COVID-19 infection rates. Collaboration with other City departments and regional partners will be crucial in completing goals, regulatory requirements, studies, and projects of the Wastewater Division.

Table B-30
Financial Plan Page 293

Operating Budget Wastewater Collections
Sewer Fund Utilities
Wastewater Collections
Program Description
The Wastewater Collections program is responsible for delivering wastewater from its various commercial and residential sources to the Water Resource Recovery Facility (WRRF) via nine pump stations and 148 miles of gravity sewer mains. The program goals are: 1) to operate the wastewater collection system to meet all Federal and State regulatory requirements; 2) provide uninterrupted wastewater flow without health hazards, leakage, or groundwater inflow/ infiltration (“I/I”).

Core Services & Objectives:
 Evaluate and optimize the sewer main maintenance and hydro-cleaning program.  Evaluate the operation and maintenance of the sewer lift stations.  Complete the wastewater collection main replacement capital improvement projects.  Continue Closed Circuit Television (CCTV) sewer main inspections and prioritize structural condition ratings.
 Continue to optimize and update the Infrastructure Renewal Strategy Plan.  Continue to implement program recommendations to reduce inflow/ infiltration (I/I), including voluntary and offset lateral replacements.

Program Budget
Actual Budget 2023-25 Financial Plan
2021-22 2022-23 2023-24 Change 2024-25 Change
Staffing $1,112,090 $1,037,685 $1,182,329 13% $1,234,283 4% Contract Services $48,557 $51,235 $67,465 32% $44,150 -35% Other Operating Costs $174,701 $242,107 $236,958 -2% $260,001 10% Total Program $1,335,349 $1,331,027 $1,486,752 12% $1,538,435 3% Opportunities and Challenges
The Wastewater Collections section continues to identify and address I/I in the city-owned sanitary sewer system and the public and private (laterals) wastewater collection system. I/I may result in spills, and regulatory violations that harm water quality, threaten human health, limit capacity in the City’s wastewater collection system, and result in significant increases in electrical and chemical usage at the WRRF. A second wastewater collection system flow study and corresponding Infrastructure Renewal Strategy (IRS) project will begin in late 2023 to provide an updated comprehensive understanding of system issues, focus staffing resources, and inform future capital projects.

Ongoing I/I programs, such as the offset and lateral rebate programs and ongoing Flow Study/IRS project, will help accommodate infill and new housing projects and will reduce power and chemical consumption to meet the City’s Major City Goals related to Housing and Climate Action.

Table B-31:

Financial Plan Page 294