Agenda packet — San Luis Obispo City Council, January 23, 2024 (part 4 of 5)

City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2023
Special Revenue Funds
Downtown BID
Transportation
Development Act
(TDA) Tourism BID Gas Tax
Revenues:

Use of money and property $ - $ - $ 17,020 $ -
Subventions and grants - 76,869 1,239,701 -
Charges for services 269,524 2,209,268 - -
Property tax - - - -
Other revenues - - 122 -
Total revenues 269,524 76,869 2,226,410 1,239,701
Expenditures:

Current:

General Government - - - -
Public safety - - - -
Transportation - - - -
Community development 271,977 - 1,904,368 -
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Capital:

General Government - - - -
Public safety - - - -
Transportation - - - -
Leisure, cultural and social services - - - -
Community development - - - -
Total expenditures 271,977 - 1,904,368 -
Excess (deficiency) of revenues over
(under) expenditures (2,453) 76,869 322,042 1,239,701
Other financing sources (uses):

Transfers in - - - -
Transfers out - (76,869) (43,298) (1,239,701)
Total other financing
sources (uses) - (76,869) (43,298) (1,239,701)
Net change in fund balance (2,453) - 278,744 -
Fund balance, beginning of year 29 8,681 1,147,881 -
Fund balance (deficit),
end of year $ 8,681 (2,424) $ 1,426,62 $ 5 $ -
(Continued)
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City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2023
Special Revenue Funds
Community
Development
Block Grant
(CDBG)
Law
Enforcement
Grants
Public Art
Contributions
Avila Ranch
CFD
Revenues:

Use of money and property $ - $ 877 $ 16,742 $ 1,838
Subventions and grants 34,595 113,671 - -
Charges for services - 19,497 220,854 -
Property tax - - - 160,890
Other revenues - - - -
Total revenues 34,595 134,045 237,596 162,728
Expenditures:

Current:

General Government - - - -
Public safety - 132,647 - -
Transportation - - - -
Community development - - - 4,923
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Capital:

General Government - - - -
Public safety - - - -
Transportation - - 3,197 -
Leisure, cultural and social services - - 205,093 -
Community development - - - -
Total expenditures - 132,647 208,290 4,923
Excess (deficiency) of revenues over
(under) expenditures 34,595 1,398 29,306 157,805
Other financing sources (uses):

Transfers in - - 442,500 -
Transfers out - - - -
Total other financing
sources (uses) - - 442,500 -
Net change in fund balance 34,595 1,398 471,806 157,805 Fund balance, beginning of year 108,575 67,058 798,038 - Fund balance (deficit),
end of year $ 143,170 $ 68,456 $ 1,269,844 $ 157,805
(Continued)
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City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2023
Capital Project
Funds
SB1 Road
Repair
SB1186 ASP
Certify
Affordable
Housing BEGIN
Loan Fund
Parkland
In-Lieu Fee
Revenues:

Use of money and property $ (3,773) $ 1,737 $ 1,793 $ 37,391 Subventions and grants 1,063,496 - - -
Charges for services - 29,246 - 110,415
Property tax - - - -
Other revenues - - - -
Total revenues 1,059,723 30,983 1,793 147,806
Expenditures:

Current:

General Government - - - -
Public safety - - - -
Transportation - - - -
Community development - 1,067 - -
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Capital:

General Government - - - -
Public safety - - - -
Transportation 1,650,783 - - -
Leisure, cultural and social services - - - 49,888
Community development - - - -
Total expenditures 1,650,783 1,067 - 49,888
Excess (deficiency) of revenues over
(under) expenditures (591,060) 29,916 1,793 97,918
Other financing sources (uses):

Transfers in - - 182,821 -
Transfers out - - - -
Total other financing
sources (uses) - - 182,821 -
Net change in fund balance (591,060) 29,916 184,614 97,918 Fund balance, beginning of year 907,128 112,056 420,335 3,107,198 Fund balance (deficit),
end of year $ 141,97 316,068 $ 2 $ 604,949 $ 3,205,116
(Continued)
Special Revenue Funds
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City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2023
Capital Projects Funds
Open Space
Protection
Airport Area
Impact Fee
LOVR Sub-Area
Fee
Fleet
Replacement
Revenues:

Use of money and property $ 148 $ 7,702 $ 4,583 $ (30,567) Subventions and grants - - - -
Charges for services - - (57,593) -
Property tax - - - -
Other revenues - - - 14,100
Total revenues 148 7,702 (53,010) (16,467)
Expenditures:

Current:

General Government - - - -
Public safety - - - -
Transportation - - 114,635 -
Community development - - - -
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Capital:

General Government - - - 55,780
Public safety - - - 1,533,401
Transportation - 19,003 - -
Leisure, cultural and social services - - - -
Community development - - - -
Total expenditures - 19,003 114,635 1,589,181
Excess (deficiency) of revenues over
(under) expenditures 148 (11,301) (167,645) (1,605,648) Other financing sources (uses):

Transfers in - - 2,030,000 -
Transfers out - - - -
Total other financing
sources (uses) - - 2,030,000 -
Net change in fund balance 148 (11,301) (167,645) 424,352 Fund balance, beginning of year 12,949 675,536 584,365 2,614,555 Fund balance (deficit),
end of year $ 664,23 13,097 $ 5 $ 416,720 $ 3,038,907
(Continued)
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City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2023
Capital Projects Funds
Info Tech
Replacement
Affordable
Housing
Transportation
Impact Fee Infrastructure
Revenues:

Use of money and property $ 176,699 - $ $ 82,952 $ -
Subventions and grants 1,700,000 - - -
Charges for services 159,097 554,988 1,369,546 -
Property tax - - - -
Other revenues 419,260 - - -
Total revenues 159,097 2,850,947 1,452,498 -
Expenditures:

Current:

General Government - - - -
Public safety - - - -
Transportation - - - -
Community development - - - -
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Capital:

General Government 881,640 - - -
Public safety - - - -
Transportation - 1,104,084 - -
Leisure, cultural and social services - - - -
Community development 1,700,000 - - -
Total expenditures 881,640 1,700,000 1,104,084 -
Excess (deficiency) of revenues over
(under) expenditures (722,543) 1,150,947 348,414 -
Other financing sources (uses):

Transfers in 564,777 - 2,634,911 -
Transfers out (426,057) (239,821) (280,000) (6,993,000) Total other financing
sources (uses) 138,720 (239,821) (280,000) (4,358,089)
Net change in fund balance (583,823) 911,126 68,414 (4,358,089) Fund balance, beginning of year 3,280,265 9,364,404 7,031,866 4,788,177 Fund balance (deficit),
end of year $ 2,696,442 $ 10,275,530 $ 7,100,280 $ 430,088 (Continued)
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City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2023
Capital Projects Funds
Parkland
Development
Impact FeeCitywide OASP Park MASP Park
OASP
Transportation
Impact Fee
Revenues:

Use of money and property $ 10,397 $ 30,228 $ 19,684 $ 16,422 Subventions and grants - - - -
Charges for services 185,933 327,160 35 -
Property tax - - - -
Other revenues - - - -
Total revenues 196,330 357,388 19,719 16,422
Expenditures:

Current:

General Government - - - -
Public safety - - - -
Transportation - - - -
Community development - - - -
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Capital:

General Government - - - -
Public safety - - - -
Transportation - - - -
Leisure, cultural and social services - 77,083 - -
Community development - - - -
Total expenditures - 77,083 - -
Excess (deficiency) of revenues over
(under) expenditures 196,330 280,305 19,719 16,422
Other financing sources (uses):

Transfers in - - - -
Transfers out - - - -
Total other financing
sources (uses) - - - -
Net change in fund balance 196,330 280,305 19,719 16,422 Fund balance, beginning of year 658,029 2,043,551 1,668,915 1,392,255 Fund balance (deficit),
end of year $ 2,323,85 854,359 $ 6 $ 1,688,634 $ 1,408,677 (Continued)
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City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2023
Capital Projects Funds
Fire Impact Fee
Police Impact
Fee
Park
Improvement
Impact FeeCitywide
SLR
Transportation
Impact Fee
Revenues:

Use of money and property $ 2,711 $ 3,215 $ 16,424 $ 17,116 Subventions and grants - - - -
Charges for services 11,677 (11,653) 396,683 837,533
Property tax - - - -
Other revenues - - - -
Total revenues 14,388 (8,438) 413,107 854,649
Expenditures:

Current:

General Government - - - -
Public safety - - - -
Transportation - - - -
Community development - - - -
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Capital:

General Government - - - -
Public safety - - - -
Transportation - - - 24,096
Leisure, cultural and social services - - - -
Community development - - - -
Total expenditures - - - 24,096
Excess (deficiency) of revenues over
(under) expenditures 14,388 (8,438) 413,107 830,553
Other financing sources (uses):

Transfers in - - - -
Transfers out - - - -
Total other financing
sources (uses) - - - -
Net change in fund balance 14,388 (8,438) 413,107 830,553 Fund balance, beginning of year 200,219 245,446 1,008,615 458,855 Fund balance (deficit),
end of year $ 237,008 214,607 $ 1,421,72 $ 2 $ 1,289,408 (Continued)
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City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2023
Capital Project Debt Service
Funds Fund
Public Safety
Equipment
Replacement
Fund Debt Service
Total Nonmajor
Governmental
Funds
Revenues:

Use of money and property $ - $ 21 $ 431,360
Subventions and grants 38,094 4,266,426 -
Charges for services - 6,632,210 -
Property tax - - 160,890
Other revenues - - 433,482
Total revenues 38,094 11,924,368 21
Expenditures:

Current:

General Government - 3,132 3,132
Public safety 442,726 - 575,373
Transportation - - 114,635
Community development - - 2,182,335
Debt service:

Principal - 1,859,782 1,859,782
Interest and fiscal charges - 745,735 745,735
Capital:

General Government - - 937,420
Public safety - - 1,533,401
Transportation - - 2,801,163
Leisure, cultural and social services - - 332,064
Community development - - 1,700,000
Total expenditures 442,726 2,608,649 12,785,040
Excess (deficiency) of revenues over
(under) expenditures (404,632) (2,608,628) (860,672)
Other financing sources (uses):

Transfers in 248,380 2,209,804 8,313,193
Transfers out - (9,298,746) -
Total other financing
sources (uses) 248,380 2,209,804 (985,553)
Net change in fund balance (156,252) (398,824) (1,846,225) Fund balance, beginning of year 797,790 2,540,255 46,043,026 Fund balance (deficit),
end of year $ 2,141,431 641,538 $ 44,196,801 $
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Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Charges for services
Assessments $ 275,000 $ 275,000 $ 269,524 $ (5,476)
Total Revenues 275,000 275,000 269,524 (5,476)
Expenditures:

Current
Community development 275,400 275,000 271,977 3,023
Total Expenditures 275,400 275,000 271,977 3,023
Excess of Revenues Over Expenditures (400) - (2,453) (2,453) Net Change in Fund Balance (400) - (2,453) (2,453)
Fund Balance, Beginning of Year 29 29 29 -
Fund Balance, End of Year (371) $ 2 $ 9 $ (2,424) $ (2,453) Budget
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual June 30, 2023
Downtown Business Improvement District Fund
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City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual June 30, 2023
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Subventions and grants $ 45,900 $ 76,869 $ 76,869 $ -
Total Revenues 45,900 76,869 76,869 -
Excess of Revenues Over Expenditures 45,900 76,869 76,869 - Other Financing Uses:

Operating transfers out (45,000) (76,869) (76,869) -
Net Change in Fund Balance 900 -- -
Fund Balance, Beginning of Year 8,681 8,681 8,681 -
Fund Balance, End of Year $ 9,581 $ 8,681 $ 8,681 $ -
Budget
Transportation Development Act (TDA)
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Use of money and property $ (18,000) - $ $ 17,020 $ 35,020 Assessments 1,727,202 2,140,800 2,209,268 68,468
Total Revenues 1,727,202 2,122,800 2,226,410 103,610
Expenditures:

Current
Community development 2,086,582 2,078,584 1,904,368 174,216 Total Expenditures 2,086,582 2,078,584 1,904,368 174,216 Excess of Revenues Over (Under) Expenditures (359,380) 44,216 322,042 277,826 Other Financing Uses:

Operating transfers out (42,816) (34,544) (43,298) (8,754) Net Change in Fund Balance (402,196) 9,672 278,744 269,072 Fund Balance, Beginning of Year 1,147,881 1,147,881 1,147,881 - Fund Balance, End of Year $ 745,685 $ 1,157,553 $ 1,426,625 $ 269,072 Budget
Tourism Business Improvement District Fund
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Subventions and grants $ 1,245,024 $ 1,305,634 $ 1,239,701 $ (65,933) Total Revenues 1,245,024 1,305,634 1,239,701 (65,933)
Excess of Revenues Over Expenditures 1,245,024 1,305,634 1,239,701 (65,933) Other Financing Uses:

Operating transfers out (1,389,292) (1,377,557) (1,239,701) 137,856 Net Change in Fund Balance (144,268) (71,923) - 71,923
Fund Balance, Beginning of Year - -- -
Fund Balance, End of Year (144,268) $ (71,923) $ - $ 71,92 $ 3 Budget
Gas Tax
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Subventions and grants $ - $ 34,59 - $ 5 $ 34,595
Total Revenues - -34,595 34,595
Expenditures:

Current
Community development - - - -
Total Expenditures - -- -
Excess of Revenues Over (Under) Expenditures - -34,595 34,595 Net Change in Fund Balance - -34,595 34,595
Fund Balance, Beginning of Year 108,575 108,575 108,575 - Fund Balance, End of Year 108,57 $ 5 $ 108,575 $ 143,170 $ 34,595 Budget
Community Development Block Grant (CDBG) Fund
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Subventions and grants $ 439,812 $ 454,753 $ 113,671 $ (341,082) Charges for services 2,142 2,142 19,497 17,355
Total Revenues 441,954 456,895 134,045 (322,850)
Expenditures:

Public Safety - 14,941 132,647 (117,706)
Total Expenditures - 14,941 132,647 (117,706)
Excess of Revenues Over (Under) Expenditures 441,954 441,954 1,398 (440,556) Net Change in Fund Balance 441,954 441,954 1,398 (440,556) Fund Balance, Beginning of Year 67,058 67,058 67,058 -
Fund Balance, End of Year 509,01 $ 2 $ 509,012 $ 68,456 $ (440,556) Budget
Law Enforcement Grants Fund
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Use of money and property 2,100 $ 2,100 $ 16,742 $ 14,642 $ Other revenues 15,000 15,000 220,854 205,854
Total Revenues 17,100 17,100 237,596 220,496
Expenditures:

Capital Projects 325,000 404,168 208,290 195,878
Total Expenditures 325,000 404,168 208,290 195,878
Excess of Revenues Over (Under) Expenditures (307,900) (387,068) 29,306 416,374 Other Financing Uses:

Operating transfers in 442,500 442,500 -
Net Change in Fund Balance (307,900) 55,432 471,806 416,374

Fund Balance, Beginning of Year 798,038 798,038 798,038 - Fund Balance, End of Year $ 490,138 $ 853,470 $ 1,269,844 $ 416,374 Budget
Public Art Contributions Fund
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Use of money and property - $ - $ 1,838 $ 1,838 $
Property tax - - 160,890 160,890
Other revenues - 5,833 - (5,833)
Total Revenues - 5,833 162,728 156,895
Expenditures:

Community Development - 4,923 4,923 -
Total Expenditures - 4,923 4,923 -
Excess of Revenues Over (Under) Expenditures - 157,805 910 156,895 Net Change in Fund Balance - 157,805 910 156,895

Fund Balance, Beginning of Year - - - -
Fund Balance, End of Year - 157,805 910 156,895
Avila Ranch CFD
Budget
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Use of money and property $ - - $ $ (3,773) $ (3,773)
Subventions and grants 1,049,877 1,019,914 1,063,496 43,582 Total Revenues 1,049,877 1,019,914 1,059,723 39,809
Expenditures:

Capital Projects 1,177,994 285,359 1,650,783 (1,365,424) Total Expenditures 1,177,994 285,359 1,650,783 (1,365,424) Excess of Revenues Over (Under) Expenditures (128,117) 734,555 (591,060) (1,325,615) Net Change in Fund Balance (128,117) 734,555 (591,060) (1,325,615) Fund Balance, Beginning of Year 907,128 907,128 907,128 - Fund Balance, End of Year 779,011 $ 1,641,68 $ 3 $ 316,068 $ (1,325,615) SB1 Road Repair Fund
Budget
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Use of money and property $ - $ 1,737 - $ $ 1,737
Charges for services - -29,246 29,246
Total Revenues - -30,983 30,983
Expenditures:

Community Development 25,000 14,638 1,067 13,571
Total Expenditures 25,000 14,638 1,067 13,571
Excess of Revenues Over (Under) Expenditures (25,000) (14,638) 29,916 44,554 Net Change in Fund Balance (25,000) (14,638) 29,916 44,554 Fund Balance, Beginning of Year 112,056 112,056 112,056 - Fund Balance, End of Year 87,05 $ 6 $ 97,418 $ 141,972 $ 44,554 SB1186 CASP Certify
Budget
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Use of money and property $ - $ 1,79 - $ 3 $ 1,793
Total Revenues - -1,793 1,793
Excess of Revenues Over (Under) Expenditures - -1,793 1,793 Other Financing Uses:

Operating transfers in - 182,821 182,821 -
Net Change in Fund Balance - 182,821 184,614 1,793
Fund Balance, Beginning of Year 420,335 420,335 420,335 - Fund Balance, End of Year 420,33 $ 5 $ 603,156 $ 604,949 $ 1,793 Affordable Housing BEGIN Loan Fund
Budget
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Use of money and property $ - $ - $ 21 $ 21
Total Revenues - - 21 21
Expenditures:

General Government - - 3,132 (3,132)
Principal 1,185,195 1,494,600 1,859,782 (365,182)
Interest and fiscal charges 668,479 715,205 745,735 (30,530) Total Expenditures 1,853,674 2,209,805 2,608,649 (398,844) Excess of Revenues Over (Under) Expenditures (1,853,674) (2,209,805) (2,608,628) (398,823) Other Financing Uses:

Operating transfers in 2,209,804 2,209,804 2,209,804 -
Total other Financing Uses: 2,209,804 2,209,804 2,209,804 - Net Change in Fund Balance 356,130 (1) (398,824) (398,823) Fund Balance, Beginning of Year 2,540,255 2,540,255 2,540,255 - Fund Balance, End of Year 2,896,38 $ 5 $ 2,540,254 $ 2,141,431 $ (398,823) Budget
Debt Service Fund
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City of San Luis Obispo, California
Custodial Funds
For the Fiscal Year Ended June 30, 2023
The City of San Luis Obispo has established the following agency funds, which are used to account for funds held by the City as an agent for private donations and programs operated jointly with other local agencies:

Whale Rock Fund. This fund was established to account for the financial activities of the Whale Rock Commission, a joint venture providing water service to the City, the California Polytechnic State University, and the California Men's Colony.

Jack House Fund . This fund was established to account for the financial activities of the Jack House Committee, which includes the rehabilitation and use of a use of the historic Jack House property.

Hazardous Materials Task Force Fund . This fund was established to account for the financial activities of the County task force.

General Agency Fund. This fund was established to account for a broad category of funds, including donations, provided to the City to be utilized for specific purposes.

Boysen Ranch Conservation Easement Fund . This fund was established to account for contributions toward obtaining a conservation easement on the Boysen Ranch property.

Cable Television Public, Educational and Government Funds (PEG) for the City of San Luis Obispo, San Luis Coastal Unified School District (SLCUSD) and San Luis Obispo County Public Access, Inc. Public Access Television (PAT). These funds account for collections by Charter Communications from its customers for PEG access equipment and facilities. The City of San Luis Obispo, SLCUSD and PAT annually receive equal shares of collections, restricted for approved uses as stipulated in the cable franchise agreement.

San Luis Ranch CFD Fund . This fund was established to account for the financial activities of the San Luis Ranch Community Facilities District (CFD). The CFD is the City's first Mello-Roos district. Property taxes collected on properties within the CFD will be used to pay for debt service on the related infrastructure constructed within the district.
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City of San Luis Obispo
Combining Statement of Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2023
Hazardous General Boysen Ranch
Whale Jack Materials Task Agency Conservation
Rock Fund House Fund Force Fund Fund Easement
ASSETS
Cash and investments 5,003,065 $ 19,146 $ 161,738 $ 2,972,047 $ 402,106 $ Receivables:

Accounts 227,594 - - - -
Interest 16,382 62 528 - 1,303
Capital assets 726,355 - - - -
Total assets 19,208 5,973,396 162,266 2,972,047 403,409

LIABILITIES
Accounts payable 38,036 - 6,171 93,123 -
Compensated absence 64,343 - - - -
Accrued Salaries 13,568 - 292 - -
Other liabilities 2,000 - - - -
Total liabilities - 117,947 6,463 93,123 -

NET POSITION
Restricted for
Individuals, organizations, and
other governments 19,208 5,855,449 155,803 2,878,924 403,409 Total net position $ 19,208 5,855,449 $ 155,80 $ 3 $ 2,878,924 $ 403,409 (Continued)
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City of San Luis Obispo
Combining Statement of Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2023
Total
PEG City of San Luis Ranch PEG Custodial
San Luis Obispo CFD SLCUSD Funds
ASSETS
Cash and investments 113,497 $ 11,802,003 $ 34,475 $ 20,508,077 $ Receivables:

Accounts - 181,663 - 409,257
Interest 351 1,216 96 19,938
Capital assets - - - 726,355
Total assets 11,984,882 113,848 34,571 21,663,627

LIABILITIES
Accounts payable - 3,678 - 141,008
Compensated absence - - - 64,343
Accrued Salaries - - - 13,860
Other liabilities - - - 2,000 0
Total liabilities 3,678 - - 221,211

NET POSITION
Restricted for
Individuals, organizations, and
other governments 11,981,204 113,848 34,571 21,442,416
Total net position $ 11,981,20 113,848 $ 4 $ 34,571 $ 21,442,416 153

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Hazardous General Boysen Ranch
Whale Jack Materials Task Agency Conservation
Rock Fund House Fund Force Fund Fund Easement
ADDITIONS:

Assessment revenue $ - - $ - $ - $ - $
Charges for services 1,126,924 - 63,000 --
Charges for public programming - - - - -
Contribution from developers - - -1,128,775 -
Other revenue - 1,188,508 - 31,081 -
Use of money and property 224 60,749 2,089 - 4,665
Total additions 2,376,181 224 65,089 1,159,856 4,665
DEDUCTIONS:

Administration expenses 190,501 - 10,163 90,837 -
Contractual services 1,233,371 - 38,779 - 6,490
Materials and supplies 176,959 - 7,433 --
Public programming - ----
Use of developer deposits - -- 1,217,765 -
Depreciation 63,283 ----
Total deductions 1,664,114 - 56,375 1,308,602 6,490
Net increase (decrease) in
fiduciary net position
224 712,067 8,714 (148,746) (1,825)
NET POSITION:

Beginning of year, as restated 5,143,382 18,984 147,089 3,027,670 405,234 End of year $ 5,855,449 $ 19,208 $ 155,803 $ 2,878,924 $ 403,409 (Continued)
City of San Luis Obispo
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the year ended June 30, 2023
154

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City of San Luis Obispo
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the year ended June 30, 2023
Total
PEG City of San Luis Ranch PEG Custodial
San Luis Obispo CFD SLCUSD Funds
ADDITIONS:

Assessment revenue $ - $ 958,259 $ - $ 958,259
Charges for services - - -1,189,924
Charges for public programming 40,585 - 40,585 81,170
Contribution from developers - - -1,128,775
Other revenue - - - 1,219,589
Use of money and property 335,522 1,249 (2,249) 402,249 Total additions 41,834 1,293,781 38,336 4,979,966
DEDUCTIONS:

Administration expenses - 790,262 - 1,081,763
Contractual services - 92,697 - 1,371,337
Materials and supplies - - - 184,392
Public programming - 44,188 - 44,188
Use of developer deposits - - - 1,217,765
Depreciation - - - 63,283
Total deductions 44,188 790,262 92,697 3,962,728
Net increase (decrease) in
fiduciary net position
503,519 (2,354) (54,361) 1,017,238
NET POSITION:

Beginning of year, as restated 116,202 11,477,685 88,932 20,425,178 End of year $ 113,848 $ 11,981,204 $ 34,571 $ 21,442,416 155

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156

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STATISTICAL SECTION (UNAUDITED)
157

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158

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City of San Luis Obispo, California
Statistical Section Overview
For the Fiscal Year Ended June 30, 202
This part of the City of San Luis Obispo’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’s overall financial health.

Contents
Financial Trends – Schedules 1-6. These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

Revenue Capacity – Schedules 7-13. These schedules contain information to help the reader assess the government’s most significant local revenue sources, sales and property taxes.

Debt Capacity – Schedules 14-19. These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

Demographic and Economic Information – Schedules 20-22. These schedules offer demographic and economic indicators to help the reader understand the environment within which the government’s financial activities take place.

Operating Information – Schedules 23-26. These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the government provides and the activities it performs. 159

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2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Governmental activities: Net investment in capital assets $ 145,266,043 $ 150,430,226 $ 163,449,992 $ 165,100,426 $ 171,472,251 $ 174,431,254 $ 177,335,648 $ 184,387,289 $ 193,984,593 $ 205,324,234 Restricted 4,825,662 2,350,838 2,762,387 2,268,499 421,954 20,458,677 29,901,136 35,603,121 41,770,187 43,694,462 Unrestricted (66,610,104) (57,421,778) (49,031,893) (41,496,841) (49,909,657) (72,041,172) (73,806,116) (62,369,688) (57,458,111) (29,944,880) Total governmental activities net position $ 83,481,601 $ 95,359,286 $ 117,180,486 $ 125,872,084 $ 121,984,548 $ 122,848,759 $ 133,430,668 $ 157,620,722 $ 178,296,669 $ 219,073,816 Business-type activities: Net investment in capital assets $ 119,116,303 $ 125,801,845 $ 128,390,611 $ 131,149,516 $ 136,694,402 $ 139,659,544 $ 149,617,018 $ 160,750,886 $ 157,728,990 $ 170,471,787 Restricted 2,248,979 2,261,213 2,278,392 2,276,526 1,558,795 500,645 4,037,611 2,493,859 2,684,781 1,653,225 Unrestricted 35,224,987 42,117,143 49,495,220 53,421,102 50,866,147 57,379,689 53,983,005 53,159,080 79,970,715 88,160,609 Total business-type activities net position $ 156,590,269 $ 170,180,201 $ 180,164,223 $ 186,847,144 $ 189,119,344 $ 197,539,878 $ 207,637,634 $ 216,403,825 $ 240,384,486 $ 260,285,621 Primary government (City wide totals): Net investment in capital assets $ 264,382,346 $ 276,232,071 $ 291,840,603 $ 296,249,942 $ 308,166,653 $ 314,090,798 $ 326,952,666 $ 345,138,175 $ 351,713,583 $ 375,796,021 Restricted 7,074,641 4,612,051 5,040,779 4,545,025 1,980,749 20,959,322 33,938,747 38,096,980 44,454,968 45,347,687 Unrestricted (31,385,117) (15,304,635) 463,327 11,924,261 956,490 (14,661,483) (19,823,111) (9,210,608) 22,512,604 58,215,729 Total primary government net position $ 240,071,870 $ 265,539,487 $ 297,344,709 $ 312,719,228 $ 311,103,892 $ 320,388,637 $ 341,068,302 $ 374,024,547 $ 418,681,155 $ 479,359,437 City of San Luis Obispo, California
Schedule 1
Net Assets by Component
Last Ten Fiscal Years
(Accrual basis of accounting)
$-
$100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 Governmental vs Business-type Net Position
Total business-type activities net positionTotal governmental activities net position $(100,000,000)
$-
$100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 Net Position by Component
Net investment in capital assets Restricted Unrestricted 160

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2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Expenses:Governmental activities:

Public safety $ 29,651,702 $ 26,881,732 $ 29,318,821 $ 31,806,692 $ 42,097,557 $ 34,320,108 $ 34,670,383 $ 35,226,779 $ 41,132,177 $ 26,828,837 Transportation 8,975,047 11,457,311 8,792,028 9,668,840 9,229,042 7,546,278 7,416,335 8,137,479 10,395,516 10,052,069 Culture and recreation 10,239,853 10,332,740 9,808,545 9,824,262 11,125,792 9,469,520 10,063,304 11,122,003 12,407,720 11,552,865 Community development 10,183,782 10,960,778 12,900,275 14,656,604 13,457,993 12,573,953 11,882,018 11,918,019 15,506,092 14,768,484 General Government - - - - 22,429,785 - 22,058,724 17,276,491 20,982,321 25,628,303 Interest on long-term debt 1,221,205 1,015,011 1,351,468 1,170,984 1,488,183 702,885 839,661 731,045 699,284 681,023 Total governmental activities expenses 60,271,589 60,647,572 62,171,137 67,127,382 77,398,567 87,042,529 86,930,425 84,411,816 101,123,110 89,511,581Business-type activities:

Water 17,575,961 17,128,041 18,136,120 19,069,967 19,523,736 20,986,430 22,914,013 21,469,967 20,892,863 22,152,285 Sewer 10,647,255 10,132,214 10,842,451 11,683,262 14,158,612 13,967,717 13,100,905 15,064,551 12,576,058 13,417,264 Parking 3,636,607 3,556,637 3,900,052 3,791,493 4,098,840 4,088,681 4,145,364 4,057,242 4,517,125 5,063,501 Transit 4,059,138 3,994,194 4,088,423 4,076,871 4,355,103 4,320,976 4,384,344 4,023,536 3,851,264 4,482,763 Total business-type activities expenses 35,918,961 34,811,086 36,967,046 38,621,593 42,136,291 43,363,804 44,544,626 44,615,296 41,837,310 45,115,813Total primary government expenses $ 96,190,550 $ 95,458,658 $ 99,138,183 $ 105,748,975 $ 119,534,858 $ 130,406,333 $ 131,475,051 $ 129,027,112 $ 142,960,420 $ 134,627,394Program Revenues:Governmental activities:

Charges for services:

Public safety $ 1,589,278 $ 1,697,748 $ 1,673,800 $ 1,771,383 $ 1,881,725 $ 1,633,223 $ 3,045,294 $ 3,991,193 $ 3,197,692 $ 2,847,705Transportation 1,321,323 1,270,787 1,691,757 1,793,010 1,669,563 2,399,692 531,424 91,509 636,874 955,012Culture and recreation 3,048,274 2,155,411 2,048,780 3,501,837 3,487,225 4,078,539 2,508,565 3,430,224 4,046,439 4,234,538 Community development 4,981,211 7,210,132 7,974,880 8,144,128 7,355,831 9,941,951 11,812,417 15,929,420 10,509,106 10,164,525General Government - - - - 1,391,940 - 760,606 654,039 530,775 734,991 Operating grants and contributions 2,412,469 2,509,323 2,667,058 2,488,706 4,015,502 2,990,211 4,828,837 3,601,973 3,647,813 5,331,657 Capital grants and contributions 3,680,440 7,911,867 9,355,707 40,531 39,781 47,234 2,504,722 5,688,200 1,531,157 200,933 Total governmental activities program revenues 17,032,995 22,755,268 25,411,982 17,739,595 18,449,627 22,482,790 25,991,865 33,386,558 24,099,856 24,469,361Business-type activities:

Charges for services:

Water $ 19,755,909 $ 20,446,730 $ 19,884,850 $ 20,180,931 $ 22,202,069 $ 24,026,385 $ 25,666,777 $ 28,340,076 $ 29,894,129 $ 27,720,676Sewer 17,151,212 18,007,064 16,460,140 16,272,533 16,753,094 18,674,547 19,042,384 21,501,546 23,642,048 22,341,314 Parking 3,998,730 4,905,494 7,408,729 4,666,970 5,226,780 5,443,038 3,293,941 2,567,908 4,890,317 6,022,372Transit 688,585 649,899 659,471 666,296 703,451 776,808 633,566 331,352 713,777 809,969 Operating grants and contributions 2,458,640 3,148,651 2,888,820 4,180,386 3,099,618 3,259,975 4,712,832 3,742,594 5,156,782 7,355,896Capital grants and contributions 82,359 60,063 - - - - - - - - Total business-type activities programs revenues 44,135,435 47,217,901 47,302,010 45,967,116 47,985,012 52,180,753 53,349,500 56,483,476 64,297,053 64,250,227 Total primary government program revenues $ 61,168,430 $ 69,973,169 $ 72,713,992 $ 63,706,711 $ 66,434,639 $ 74,663,543 $ 79,341,365 $ 89,870,034 $ 88,396,909 $ 88,719,588 Net Revenues (Expenses):

Governmental activities $ (43,238,594) $ (37,892,304) $ (36,759,155) $ (49,387,787) $ (58,948,940) $ (64,559,739) $ (60,938,560) $ (51,025,258) $ (77,023,254) $ (65,042,220)Business-type activities 8,216,474 12,406,815 10,334,964 7,345,523 5,848,721 8,816,949 8,804,874 11,868,180 22,459,743 19,134,414Total primary government $ (35,022,120) $ (25,485,489) $ (26,424,191) $ (42,042,264) $ (53,100,219) $ (55,742,790) $ (52,133,686) $ (39,157,078) $ (54,563,511) $ (45,907,806) Continued
City of San Luis Obispo, California
Schedule 2
(Accrual Basis of Accounting)
Changes in Net Position, Last Ten Fiscal Years
161

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2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 General Revenues and Other Changes in Net Position:Governmental activities:

Sales and use taxes $ 22,180,173 $ 22,408,980 $ 24,676,377 $ 24,068,665 $ 24,559,570 $ 26,444,775 $ 24,125,439 $ 32,847,453 $ 51,419,561 $ 52,374,199 Property taxes 8,960,010 9,631,890 10,186,858 10,756,477 11,425,510 12,238,357 13,301,736 14,197,869 14,716,412 15,635,545 Transient occupancy tax 6,063,232 6,805,742 7,127,756 7,381,989 7,514,289 8,061,087 6,325,841 6,960,035 10,650,762 11,037,037 Utility users tax 5,345,342 5,211,207 5,413,720 5,539,407 5,627,356 4,919,892 5,439,144 5,225,979 5,338,325 6,904,194 Property tax in-lieu of vehicle license fees 3,645,692 3,849,341 4,113,244 4,353,912 4,637,253 4,961,080 5,290,215 5,660,661 5,994,592 6,283,397 Other taxes and fees 4,779,570 4,993,285 4,800,592 3,929,377 5,006,594 4,332,557 4,883,677 5,578,944 5,800,333 7,216,335 Investment earnings 566,931 467,348 825,760 997,995 164,434 1,618,354 3,368,951 435,818 (1,638,993) 2,350,922Miscellaneous and other 679,127 707,781 - - - 146,579 1,001,369 1,019,626 1,213,401 1,774,126 Gain (loss) on disposal of capital assets - - - - - - - - - - Prior period adjustment (833,234) - - - - - - 745,285 - - Cumulative change in accounting principle (GASB 65) - - - - - - - - Transfers (73,771) (329,452) 1,436,048 1,051,563 1,198,027 2,456,035 1,889,900 1,992,911 1,685,314 2,243,612 Total governmental activities 51,313,072 53,746,122 58,580,355 58,079,385 60,133,033 65,178,716 65,626,272 74,664,581 95,179,707 105,819,367Business-type activities Investment earnings $ 364,551 $ 361,627 $ 845,906 $ 182,261 $ 320,471 $ 2,516,216 $ 2,880,634 $ 577,250 $ (1,207,118) $ 2,618,340Cumulative change in accounting principle - - - - - - - - - -Income from investment in joint venture - - 239,200 206,700 209,300 (25,469) 153,949 519,677 585,101 391,993 Prior period adjustment - - - - - - - (907,350) - -
Transfers 73,771 329,452 (1,436,048) (1,051,563) (1,198,027) (2,456,035) (1,889,900) (1,992,911) (1,685,314) (2,243,612) Total business-type activities 438,322 691,079 (350,942) (662,602) (668,256) 1,144,683 34,712 (1,803,334) (2,307,331) 766,721 Total primary government $ 51,751,394 $ 54,437,201 $ 58,229,413 $ 57,416,783 $ 59,464,777 $ 65,213,428 $ 66,770,955 $ 72,861,247 $ 92,872,376 $ 106,586,088Change in net position:

Governmental activities $ 8,074,478 $ 15,853,818 $ 21,821,200 $ 8,691,598 $ 1,184,093 $ 618,977 $ 4,687,712 $ 23,639,323 $ 18,156,453 $ 40,777,147 Business-type activities 8,654,796 13,097,894 9,984,022 6,682,921 5,180,465 8,851,661 9,949,557 10,064,846 20,152,412 19,901,135 Total primary government $ 16,729,274 $ 28,951,712 $ 31,805,222 $ 15,374,519 $ 6,364,558 $ 9,470,638 $ 14,637,269 $ 33,704,169 $ 38,308,865 $ 60,678,282 Schedule 2
City of San Luis Obispo, California
Changes in Net Position, Last Ten Fiscal Years
(Accrual Basis of Accounting)
Continued
162

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Fiscal Sales Local Property Transient Utility Property Franchise Business Other Year and Use Sales (Note 2) (Note 1) Occupancy Users in-lieu of VLF Fees Tax Taxes Total 2013-14 15,405,808 6,774,365 8,960,010 6,063,232 5,345,692 3,645,692 2,636,599 2,142,971 679,127 51,653,496 2014-15 15,272,683 7,136,297 9,631,890 6,805,742 5,211,207 3,849,341 2,790,077 2,203,208 707,781 53,608,226 2015-16 17,498,218 7,178,159 10,186,858 7,127,756 5,413,720 4,113,244 1,537,922 2,491,516 771,154 56,318,547 2016-17 16,737,005 7,331,660 10,756,477 7,381,989 5,539,407 4,353,912 1,557,128 2,372,249 737,826 56,767,653 2017-18 17,055,085 7,504,485 11,425,510 7,514,289 5,627,356 4,637,253 1,597,655 2,663,686 745,253 58,770,572 2018-19 18,119,545 8,325,230 12,238,357 8,061,087 4,919,892 4,961,080 1,428,296 2,630,499 273,762 60,957,748 2019-20 16,571,064 7,554,375 12,913,661 6,325,841 5,439,144 5,290,215 1,888,414 2,995,263 388,075 59,366,052 2020-21 20,067,740 12,779,713 14,197,869 6,960,035 5,225,979 5,660,661 1,796,829 3,782,115 425,136 70,896,077 2021-22 22,247,303 29,172,258 14,716,412 10,650,762 5,338,325 5,994,592 1,978,295 2,823,163 998,875 93,919,985 2022-23 21,865,468 30,508,731 15,635,545 11,037,037 6,904,194 6,283,397 2,349,603 3,281,010 1,585,722 99,450,707 Notes:
1) Property tax revenues are presented net of SB2557 County administrative fees (approximately 3% of total property tax revenues).

The City has elected to receive its property tax revenues based on the Teeter Plan method of collection whereby theCounty remits 100% of taxes levied, pursues collection and retains any delinquent taxes and related penalties and interest. 2) In November 2014 voters in San Luis Obispo reauthorized the local half-percent sales and use tax measure (Measure G) .

In November 2020 voters in San Luis Obispo replaced the local half-percent sales and use tax with a 1.5% local sales and use tax (Measure G-20). (Accrual Basis of Accounting)
Schedule 3
City of San Luis Obispo, California
Governmental Activities Tax and Franchise Revenues by Source Last Ten Fiscal Years
-
5,000,000
10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Revenue Trends
Sales and Use Local Sales Property Transient Occupancy Utility UsersProperty in-lieu of VLF Franchise Fees Business Tax Other Taxes 163

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2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 General fund: Reserved $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ Unreserved: Designated - - - - - - - - - -
Undesignated - - - - - - - - - -
Nonspendable: Prepaid items 3,191,055 56,020 60,181 3,173,248 3,520,473 - 51,636 41,155 90,797 101,462 Restricted for: Debt service 312,037 303,126 489,056 128,102 159,724 - - - - - Committed to: General government programs 4,973,497 3,942,459 4,468,863 9,428,034 8,693,113 - - 9,299,971 5,696,864 5,307,988 Contingency Fund - - - - - - - 11,830,380 12,014,000 13,727,000 Risk management - - - - - - - 1,955,966 1,845,935 585,456 Assigned to:

CalPERS pension payment - - - - - - - 10,200,000 2,000,000 2,000,000 Contingency Fund 10,458,000 10,486,931 11,092,782 10,902,368 10,171,464 13,418,400 10,251,000 - - - Solid Waste AB939 - - - - - - - - - 281,000
Establishment of Section 115 Trust - - - - - - 1,400,000 2,000,000 2,000,000 2,000,000 Revenue stabilization - - - - - - 1,000,000 - - 2,000,000 Development Services 1,848,386 - 382,396 596,796 41,110 531,000 899,277 710,657 530,657 464,136SLO Repertory Theater Grant -- - - - - - - 3,940,000 3,940,000 Tenant Improvement program/Economic Develo -- - - - - - - - 1,400,000 General government programs - -- - - - - - 4,270,529 -
Public Safety - 97,239 - - - - 1,096,215 929,344 - -
Risk management - -- - - - 1,498,078 - - -
City Attorney - -- 100,000 100,000 - 100,000 100,000 - - Subsequent years expenditures - - 2,716,534 - - 9,908,932 10,284,119 4,738,806 - 2,455,573 Unassigned 1,382,590 7,828,485 10,419,881 2,723,292 6,334,870 6,185,574 5,311,792 7,122,607 8,356,724 8,275,453 Total general fund 20,317,179 24,566,807 29,625,532 26,496,154 29,576,440 30,095,542 33,651,296 47,118,071 40,745,506 42,538,068 Continued
Schedule 4
For the Fiscal Year Ended June 30
(Modified Accrual Basis of Accounting)
Last Ten Fiscal Years
Fund Balances, Governmental Funds
City of San Luis Obispo, California
164

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2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 All other governmental funds: Reserved $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Unreserved reported in: Capital projects funds - - - - - - - - - - Special revenue funds - - - - - - - - - -
Nonspendable - - - 5,642 (71,687) 292,641 - - 8,681 -Restricted for: Debt service 2,043,222 2,140,980 2,119,724 2,119,611 1,653,109 1,791,026 2,226,898 2,575,367 2,540,255 2,141,431 Public safety programs 27,145 16,886 23,492 20,786 3,073 - 32,332 63,418 864,848 68,456 Transportation projects - - - - 8,151,487 - 9,371,824 10,519,994 8,051,050 7,567,001 Affordable housing programs - - - - 2,944,549 - 8,698,494 9,292,304 9,893,314 11,023,649 Impact fee programs - - - - 1,870,656 - 3,126,925 7,466,378 8,935,786 10,519,226 Parkland development programs - - - - 3,528,662 - 4,709,560 3,405,468 3,107,198 3,205,116 Public art programs - - - - - 620,934 591,097 568,401 798,038 1,269,844 Tourism programs - - - - - 456,023 322,975 678,554 1,147,881 1,426,625Infrastructure improvements - - - - - - - - - 157,805 Committed to: Affordable housing programs 2,946,847 2,601,882 2,562,825 5,054,332 3,974,629 - - - - - Capital outlay 6,045,091 3,632,641 2,954,223 - - - - - - - General government programs 4,743,552 1,084,221 7,463,605 8,092,594 - - - - - - Impact Fees Programs 411,592 9,410,273 549,349 8,795,074 595,256 - - - - - Open space programs 1,582,425 983,402 1,265,620 588,743 2,363,347 - - - - - Parkland development programs - - 2,728,883 - - - - - - - Contingency fund - - - - 519,885 - - - - - Public safety programs - - - - - - - - - 641,538 Assigned to: Contingency fund - - - 900,000 900,000 900,000 900,000 900,000 900,000 900,000 Subsequent years expenditures 3,552,319 2,606,757 3,559,851 5,846,873 5,861,455 6,382,294 8,521,320 8,826,420 23,533,631 29,776,252 Unassigned 1,039 (83) - - - (318,422) (149,162) (5,782) - (2,424) Total all other governmental funds 21,353,232 22,476,959 20,498,689 26,059,944 23,891,661 26,619,850 38,352,263 44,290,522 59,780,682 68,694,519 Total all governmental funds $ 41,670,411 $ 47,043,766 $ 50,124,221 $ 52,556,098 $ 53,468,101 $ 56,715,392 $ 72,003,559 $ 91,408,593 $ 100,526,188 $ 111,232,587 Continued
For the Fiscal Year Ended June 30
Schedule 4
City of San Luis Obispo, California
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
165

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2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Revenues: Sales and use - general $ 15,405,808 $ 15,272,683 $ 17,498,218 $ 16,737,005 $ 17,055,085 $ 17,805,482 $ 16,571,064 $ 20,067,740 $ 22,247,303 $ 21,865,468 Sales and Use - local transaction tax 6,774,365 7,136,297 7,178,159 7,331,660 7,504,485 8,325,230 7,554,375 12,779,713 29,172,258 30,508,731 Prop. 172 Public Safety tax 391,567 409,590 405,066 405,512 397,488 314,063 416,459 425,136 529,299 544,521 Property tax 8,960,010 9,631,890 10,186,858 10,756,477 11,425,510 12,238,357 12,913,661 13,727,986 14,166,259 15,474,655 Transient Occupancy 6,063,232 6,805,742 7,127,756 7,381,989 7,514,289 8,061,087 6,325,841 6,960,035 10,650,762 11,037,037 Utility users tax 5,345,342 5,211,207 5,413,720 5,539,407 5,627,356 4,919,892 5,439,144 5,225,979 5,338,325 6,904,194 Property tax in-lieu of VLF 3,645,692 3,849,341 4,113,244 4,353,912 4,637,253 4,961,080 5,290,215 5,660,661 5,994,592 6,283,397 Franchise fees 2,636,599 2,790,077 1,537,922 1,557,128 1,597,655 1,428,296 1,888,414 1,796,829 1,978,295 2,349,603 Business tax 2,142,971 2,203,208 2,491,516 2,372,249 2,663,686 2,630,499 2,995,263 3,782,115 2,823,163 3,281,010 Cannabis tax - - - - - - - - 998,875 1,127,744
Real property transfer 287,560 298,191 366,088 332,314 347,765 273,762 388,075 469,883 550,153 457,978 Fines, forfeitures and penalties 150,185 184,320 172,353 139,534 199,374 155,269 239,048 223,882 173,915 195,991 Use of money and property 566,931 467,348 825,760 260,169 164,434 1,996,382 2,005,968 219,507 (2,151,227) 1,999,872 Subventions and grants 5,989,881 10,858,570 11,771,980 2,624,753 4,156,333 3,110,689 7,538,893 10,719,698 6,446,192 6,364,704 Charges for services 11,167,033 12,450,887 13,622,945 15,173,707 14,672,746 18,394,586 17,828,561 22,090,479 17,657,128 18,418,552 Other revenues 357,469 217,710 242,744 446,456 634,391 590,796 708,579 717,440 506,722 880,614 Total revenues 69,884,645 77,787,061 82,954,329 75,412,272 78,597,850 85,205,470 88,103,560 104,867,083 117,082,014 127,694,071 Continued
Schedule 5
(Modified accrual basis of accounting)
Last Ten Fiscal Years
Revenues, Expenditures and Changes in Fund Balances of Governmental Funds City of San Luis Obispo, California
-
20,000,000 40,000,000 60,000,000 80,000,000
100,000,000 120,000,000 140,000,000
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Total Revenue
166

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2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Expenditures:Current: General Government $ 9,362,031 $ 10,534,463 $ 12,409,567 $ 11,824,360 $ 12,709,324 $ 13,769,778 $ 14,503,410 $ 13,041,242 $ 17,197,912 $ 23,646,307 Public safety 24,798,500 24,356,077 26,468,454 28,091,747 28,862,906 31,714,220 30,216,995 31,714,578 39,921,208 37,425,928 Transportation 2,882,241 2,969,111 3,317,177 3,780,804 3,565,022 3,495,909 3,710,943 4,450,572 5,131,132 5,408,704 Culture and recreation 7,155,619 7,250,398 7,428,198 7,712,834 8,571,184 8,636,582 8,416,687 9,458,448 10,440,543 11,015,177 Community development 8,389,957 10,047,272 10,770,827 10,300,894 10,815,667 10,677,334 10,477,062 11,101,465 15,067,518 14,867,023 Debt service: Principal 1,534,668 3,856,325 1,792,849 2,101,296 15,665,904 1,974,050 1,605,239 1,602,039 1,467,402 1,859,782 Interest 1,048,671 1,063,820 1,349,216 1,215,504 1,524,180 809,977 993,697 808,586 774,747 745,735 Capital: Public safety 892,351 2,371,865 1,220,759 1,772,454 506,491 706,918 182,235 107,965 248,613 1,577,415 Transportation 4,859,863 14,302,937 15,038,306 4,161,966 6,419,137 6,441,229 6,412,541 11,452,720 13,653,849 9,364,910 Leisure, cultural and social services 1,272,510 2,399,211 1,463,269 1,499,704 981,768 597,187 1,213,682 537,118 3,933,463 1,226,800 Community development (Note 1) 939,017 123,258 149,537 2,078,181 525,105 1,568,147 785,517 105,142 601,315 10,202,665 General government 145,199 1,684,045 590,263 633,682 1,192,424 4,695,978 2,081,482 2,492,435 1,619,793 2,365,432 Total expenditures 63,280,627 80,958,782 81,998,422 75,173,426 91,339,112 85,087,309 80,599,490 86,872,310 110,057,495 119,705,878 Excess of revenues over(under) expenditures 6,604,018 (3,171,722) 955,907 238,846 (12,741,262) 118,161 7,504,070 17,994,773 7,024,519 7,988,193 Continued
Schedule 5
City of San Luis Obispo, California
Revenues, Expenditures and Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years
(Modified accrual basis of accounting)
Continued
-
50,000,000
100,000,000 150,000,000
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Total Expenditures
167

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2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Other FinancingSources(Uses):Issuance of debt/refunding debt $ 850,775 $ 8,372,323 $ 688,500 $ 1,141,468 $ 12,472,698 $ 673,095 $ - $ - $ - $ - Transfers in 13,834,998 11,682,079 12,747,578 15,739,036 19,815,144 9,064,256 9,455,785 15,460,955 35,273,279 39,735,789 Transfers out (13,908,769) (12,011,531) (11,311,530) (14,687,473) (18,617,117) (6,608,221) (7,565,885) (13,468,044) (33,587,965) (37,492,177) Other financing source - SBITA - - - - - - - - - 474,594 Total other financing sources(uses) 777,004 8,042,871 2,124,548 2,193,031 13,670,725 3,129,130 1,889,900 1,992,911 1,685,314 2,718,206 Net change in fund balance $ 7,381,022 $ 4,871,150 $ 3,080,455 $ 2,431,877 $ 929,463 $ 3,247,291 $ 9,393,970 $ 19,987,684 $ 8,709,833 $ 10,706,399 Debt service as a percentage of noncapital expenditures 5.98% 8.92% 5.20% 5.37% 26.64% 4.08% 3.86% 3.46% 2.55% 2.82% Notes:1. Community Development Block Grant (CDBG) expenditures are included in the Community Development total for purposes of this schedule. 2. Prior to 2021-22, cannabis tax was included in business tax Continued
Schedule 5
City of San Luis Obispo, California
Revenues, Expenditures and Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years
(Modified accrual basis of accounting)
-
50,000,000
100,000,000 150,000,000
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Revenue, Expenditures, and Other
Revenue Expenditures Other Financing Sources
168

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2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Staffing: Salaries and wages: Regular salaries $ 23,242,170 $ 23,804,510 $ 24,790,947 $ 26,944,188 $ 26,666,447 $ 27,520,149 $ 28,601,004 $ 29,014,941 $ 31,822,988 $ 35,422,024 Temporary salaries 2,191,214 2,137,487 1,964,521 1,793,360 1,711,755 1,898,331 1,882,307 2,294,603 1,855,690 1,942,485 Overtime 3,018,181 3,222,698 3,473,489 3,604,336 4,420,756 4,241,294 3,292,469 4,527,789 4,412,287 4,504,561 Benefits: Retirement 7,637,931 7,943,827 9,323,782 10,394,523 10,570,883 15,150,755 12,593,753 13,344,252 24,665,892 17,908,383 Group health/disability insurance 3,387,101 3,319,117 3,828,238 4,129,004 4,638,471 4,193,021 4,291,139 4,040,575 4,327,121 5,130,991 Medicare 393,913 408,889 418,704 455,966 469,688 477,925 505,450 537,516 481,571 593,725 Unemployment Reimbursements 48,588 31,634 5,159 150,929 61,972 - 61,240 101,575 17,484 41,464 Total staffing 39,902,144 40,885,116 43,804,840 47,472,306 48,539,972 53,481,475 51,203,483 53,829,185 67,638,979 65,543,634 Contract services 5,725,290 5,903,638 6,271,607 6,962,949 6,940,018 6,557,939 6,444,957 7,190,499 9,067,321 10,328,784Other operating expenditures Communications & utilities 2,034,997 1,945,243 2,192,384 2,023,057 2,190,695 2,444,564 2,115,821 3,348,001 3,780,633 3,867,295 Rents & leases 197,104 159,718 164,729 170,288 171,909 180,478 160,045 88,615 133,521 133,649 Insurance: General liability & property 1,425,450 1,646,605 1,847,422 1,273,133 1,658,319 1,600,962 2,196,462 1,323,824 2,071,193 2,874,417 Workers compensation 1,405,916 1,631,585 2,019,722 1,627,423 2,145,046 2,422,843 2,611,827 2,037,611 2,181,044 2,844,913 Other operating expenditures 2,991,619 3,635,542 3,079,347 3,345,191 3,017,537 3,575,930 4,902,050 4,256,574 4,363,206 8,063,807 Total operating expenditures 8,055,086 9,018,693 9,303,604 8,439,092 9,183,506 10,224,777 11,986,205 11,054,625 12,529,597 17,784,081 Minor capital 195,473 78,414 92,853 203,098 90,346 - - 1,070 10,510 - Total program expenditures 53,877,993 55,885,861 59,472,903 63,077,445 64,753,842 70,264,191 69,634,645 72,075,379 89,246,406 93,656,498 Reimbursed expenditures (3,897,420) (3,451,208) (4,008,992) (4,164,747) (4,264,633) (3,981,789) (4,277,664) (4,578,402) (4,717,442) (4,461,578) Total general fund operating expenditures $ 49,980,573 $ 52,434,653 $ 55,463,911 $ 58,912,698 $ 60,489,209 $ 66,282,402 $ 65,356,981 $ 67,496,977 $ 84,528,964 $ 89,194,920 Schedule 6
(Modified Accrual Basis of Accounting)
Last Ten Fiscal Years
General Fund Operating Expenditures by Type
City of San Luis Obispo, California
169

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Fiscal Year Homeowners Secured Roll Nonunitary Unsecured Total Direct Market Value of Market Exemptions Gross Value Utilities Roll TOTAL Tax Rate (Note 1) Value 2013-14 41,327,300 6,326,132,900 5,300,173 306,943,353 6,638,376,426 1.00% 6,467,600,400 100% 2014-15 41,185,200 6,712,802,631 5,032,204 308,973,937 7,026,808,772 1.00% 7,026,808,772 100% 2015-16 41,518,400 7,166,010,320 4,883,115 317,266,793 7,488,160,228 1.00% 7,488,160,228 100% 2016-17 42,109,709 7,615,940,988 5,269,573 316,965,453 7,938,176,014 1.00% 7,702,282,828 100% 2017-18 42,702,377 7,844,131,236 4,369,188 331,183,030 8,179,683,454 1.00% 8,179,683,454 100% 2018-19 43,352,906 8,688,541,007 4,231,993 359,588,899 9,052,361,899 1.00% 9,052,361,899 100% 2019-20 43,335,854 9,156,811,458 3,990,145 360,372,662 9,521,174,265 1.00% 9,521,174,265 100% 2020-21 43,445,185 9,872,892,242 4,194,503 371,969,399 10,249,056,144 1.00% 10,249,056,144 100% 2021-22 43,644,354 10,449,275,830 4,154,621 369,153,263 10,822,583,714 1.00% 10,822,583,714 100% 2022-23 44,681,189 11,352,719,604 3,840,493 414,262,072 11,770,822,169 1.00% 11,770,822,169 100% Notes: 1) Valuations are established by the County Assessor of the County of San Luis Obispo, except for property owned by private utility companies, which is valued by the State of California. The City assumes that Market Values are equal to total Assessed Valuation. 2) For comparison purposes, gross assessed valuations include homeowners' exemptions. Although these exemptions reduce property tax collections, the revenue loss is reimbursed by the State of California. As such, gross assessed valuation is the revenue base used in establishing property tax-related revenues.

Source: HdL, Coren & Cone ACFR 2022-23 report - 2022/23 Roll Summary table.

Gross Assessed Valuation (Notes 1 and 2)
Schedule 7
City of San Luis Obispo, California
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
-
2,000,000,000
4,000,000,000
6,000,000,000
8,000,000,000
10,000,000,000
12,000,000,000
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Total Assessed Value
Secured Roll Gross Value Nonunitary Utilities Unsecured Roll 170

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2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Proposition 13 maximum tax rate (Note 2) 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Voter approved indebtedness: State Water Bond 0.00400 0.00400 0.00374 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 Cuesta Community College 2014 A & A1 - - 0.01925 0.01925 0.01925 0.01925 0.01925 0.01925 0.01925 0.01925 San Luis Coastal Usd 2014 Series A & B - - 0.04900 0.04900 0.04900 0.04900 0.04900 0.03900 0.03900 0.03500 Total (Notes 1 and 3) 1.00400 1.00400 1.07199 1.07225 1.07225 1.07225 1.07225 1.06225 1.06225 1.05825 Notes:1. Property tax rates are levied per $100 of assessed valuation. The tax rate information provided is for Tax Rate Area 003-000, which is the largest tax rate area in the City.2. The passage of Proposition 13 on June 6, 1978 established a maximum County-wide levy for general revenue purposes of 1% of market value.

Voter-approved tax rates for the retirement of long-term liabilities were excluded from this limit.3. It is not possible to identify tax rates for individual agencies however, the following is a summary of derived property tax allocations within Tax Rate Area 003-000 for Fiscal Year 2022-23Source: HdL, Coren & Cone ACFR 2022-23 report - Direct & Overlapping Property Tax Rates table Base ERAF NetRate Allocation Apportionment
San Luis Coastal Unified School District 36.10 0.00 36.10 San Luis Obispo County - General Fund 30.32 (8.08) 22.24 City of San Luis Obispo 18.36 * (3.48) 14.88
San Luis Obispo Community College District 6.42 0.00 6.42 County School Services 3.81 0.00 3.81
City/County Library 1.98 (0.32) 1.66
Port San Luis Harbor 1.63 (0.44) 1.19
Other Agencies 1.38 (0.32) 1.06Education Revenue Augmentation Fund (ERAF) 0.00 12.65 12.65 Total 100% 0% 100%
*The County further adjusts the 18.4% base rate for revenue shifts to school districts as directed by the State as part of their cuts to local agencies,resulting in an effective rate for the City of approximately 14.9%. Source: HdL, Coren & Cone ACFR 2022-23 report - Property Tax Dollar Breakdown, San Luis Obispo County Assessor 2022-23 Post ERAF TRA Allocation Factors Schedule 8
Last Ten Fiscal Years
Property Tax Rates
City of San Luis Obispo, California
171

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Number of Secured Percent of Total Number of Secured Percent of Total Owner Parcels Assessed Value Rank City Assessed Value Parcels Assessed Value Rank City Assessed Value Jamestown Premier San Luis Obispo Retail 10 $ 116,755,505 1 1.06% 9 $ 49,128,994 4 0.80% CAP VIII - Mustang Village LLC 5 100,005,897 2 0.91%Sierra Vista Hospital Inc. 8 83,107,362 3 0.76% 7 73,465,824 2 1.20% San Luis Obispo Promenade DE LLC 10 56,100,000 4 0.51%
Charles Pasquini Jr Trust Et Al 4 53,422,118 5 0.49% 9 59,599,763 3 0.97% Irish Hills Plaza East LLC 6 53,213,898 6 0.48% 3 35,458,731 5 0.58%Vintage at San Luis Obispo Alderwood 2 51,000,000 7 0.46% Hotel San Luis Obispo LLC 1 8 0.34% 37,529,832
Costco Wholesale Corporation 1 38,444,903 9 0.35% 1 33,192,009 6 0.54% Laurel Creek 4 35,195,481 10 0.32%
Target Corporation 1 24,749,747 9 0.40%
Mustang-UCAL LLC 4 78,483,289 1 1.28%
Marigold Center LLC 9 26,160,839 8 0.43%
SLO Promenade Limited Partnership 9 31,785,000 7 0.49%
Stephen N. Dorsi Trust 9 23,296,525 10 0.38%
Total 51 624,774,996 $ 5.68% 61 435,320,721 $ 7.07%
Source: HdL, Coren & Cone ACFR 2022-23 report - Top Ten Property Taxpayers table. 2013-14 data is from the City's ACFR.

Schedule 9
2022-23 2013-14
Current Year and Nine Years Ago
Principal Property Tax Payers
City of San Luis Obispo, California

94.32%

5.68%
Property Tax Payers for 2022-23
Remaining Property Tax Payers Top 10 Property Tax Payers

92.93%

7.07%
Property Tax Payers for 2013-14
Remaining Property Tax Payers Top 10 Property Tax Payers 172

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Total Secured Current Year Percent
Fiscal Tax Levy Current Year Percent Delinquencies Delinquent Year (Notes 1 and 2) Collections Collected (Note 3) (Note 3) 2013-14 8,601,630 8,601,630 100% 0 0
2014-15 9,097,280 9,097,280 100% 0 0
2015-16 9,707,340 9,707,340 100% 0 0
2016-17 10,250,205 10,250,205 100% 0 0
2017-18 10,868,920 10,868,920 100% 0 0
2018-19 11,648,706 11,648,706 100% 0 0
2019-20 12,180,662 12,180,662 100% 0 0
2020-21 12,957,910 12,957,910 100% 0 0
2021-22 13,628,729 13,628,729 100% 0 0
2022-23 14,458,958 14,458,958 100% 0 0
Notes:1. The secured property tax roll is composed of ad valorem taxes as well as special assessments, and is calculated by the San Luis Obispo County Auditor-Controller. The San Luis Obispo County Tax Collector is responsible for all property tax roll collections within the City of San Luis Obispo. The amount reported is before the SB2557 County administrative fees of approximately 3% of total property tax revenues.2. The secured levy does not include supplemental assessments, unsecured tax revenues, or prior year adjustments, which can be significant. For example, in 2012-13 revenue to the City from supplemental assessments was $99,500 and $215,100 from unsecured. A one-time refund was received from the County Auditor-Controller, refunding $632,800 representing prior overcharges for the SB2557 fee. Property tax revenues totaled $8,740,762.3. The City has elected the Teeter Plan method of property tax collection, whereby the County remits 100% of taxes levied and pursues collection and retains any delinquent taxes and related penalties and interest.

Source: San Luis Obispo County Auditor-Controller - 2022-23 Property Tax Estimates and Delinquencies Report Schedule 10
City of San Luis Obispo, California
Secured Property Tax Roll Levies and Collections
Last Ten Fiscal Years
173

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2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Sales In Thousands of DollarsApparel stores 73,170 73,241 75,037 72,540 74,268 73,272 71,632 51,499 73,724 73,290 General merchandise stores 174,794 180,442 183,397 182,596 182,975 180,609 182,263 173,777 203,468 243,196 Food and drug stores 40,875 41,979 43,798 43,486 46,085 47,337 49,239 50,107 49,447 52,218 Eating & drinking palces 147,352 159,024 171,620 177,675 184,745 187,174 192,495 140,612 199,116 223,258Building materials & farm tools 126,123 133,143 140,259 142,498 160,223 163,029 162,338 165,802 182,782 190,878 Auto dealers & supplies 269,555 287,933 305,584 307,628 321,567 322,904 322,867 325,523 403,466 395,345 Service stations 103,053 101,510 88,116 79,613 83,481 94,369 95,382 70,383 99,612 123,678 Other retail stores 263,058 267,542 277,546 282,551 279,100 283,525 264,913 248,229 302,766 308,160 Total retail stores 1,197,980 1,244,814 1,285,357 1,288,587 1,332,444 1,352,219 1,341,129 1,225,932 1,514,381 1,610,023 All other outlets 147,410 153,402 168,258 164,634 176,620 170,882 189,299 158,208 639,005 642,340 Total 1,345,390 1,398,216 1,453,615 1,453,221 1,509,064 1,523,101 1,530,428 1,384,140 2,153,386 2,252,363Source: HdL, Coren & Cone ACFR 2022-23 report - Taxable Sales by Category table Last Ten Calendar Years
Schedule of Taxable Sales and Permits by Category
City of San Luis Obispo, California
Schedule 11
$-
$500,000
$1,000,000 $1,500,000 $2,000,000 $2,500,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Taxable Sales by Category
(In Thousands of Dollars)
Apparel stores General merchandise stores Food and drug storesEating & drinking palces Building materials & farm tools Auto dealers & suppliesService stations Other retail stores All other outlets 174

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Effective End State Local City LRM Combined
Date Date Jurisdiction Transportation Fund Rate (Note 4 & 6) Rate 8/1/1933 6/30/1935 (Note 2) 2.50% 2.50%
7/1/1935 6/30/1943 3.00% 3.00%
7/1/1943 6/30/1949 2.50% 2.50%
7/1/1949 12/31/1961 3.00% 3.00%
1/1/1962 7/31/1967 3.00% 1.00% 4.00%
8/1/1967 6/30/1972 4.00% 1.00% 5.00%
7/1/1972 6/30/1973 3.75% 0.25% 1.00% 5.00%
7/1/1973 9/30/1973 4.75% 0.25% 1.00% 6.00%
10/1/1973 3/31/1974 3.75% 0.25% 1.00% 5.00%
4/1/1974 11/30/1989 4.75% 0.25% 1.00% 6.00%
12/1/1989 12/31/1990 5.00% 0.25% 1.00% 6.25%
1/1/1991 7/14/1991 4.75% 0.25% 1.00% 6.00%
7/15/1991 12/31/2000 6.00% 0.25% 1.00% 7.25%
1/1/2001 12/31/2001 5.75% 0.25% 1.00% 7.00%
1/1/2002 6/30/2004 6.00% 0.25% 1.00% 7.25%
7/1/2004 3/31/2007 (Note 3) 6.25% 0.25% 0.75% (Note 3) 7.25% 4/1/2007 3/31/2009 6.25% 0.25% 0.75% 0.50% 7.75%
4/1/2009 6/30/2011 7.25% 0.25% 0.75% 0.50% 8.75%
7/1/2011 12/31/2012 6.25% 0.25% 0.75% 0.50% 7.75%
1/1/2013 12/31/2016 6.50% 0.25% 0.75% (Note 5) 0.50% 8.00% 1/1/2017 3/31/2021 6.00% 0.25% 1.00% 0.50% 7.75%
4/1/2021 current 6.00% 0.25% 1.00% (Note 6) 1.50% 8.75% Notes:

1. The Bradley-Burns Uniform Local Sales and Use Tax Law was enacted in 1955. The law authorizes cities and counties to impose a sales and use tax. Effective January 1, 1962, all cities and counties have adopted ordinances for the State Board of Equalization to collect the local tax.

2. Sales tax only. The use tax was enacted effective July 1, 1935.

3. In March 2004, a State ballot measure was passed issuing deficit reduction bonds for State purposes. Funding was provided effective July 1, 2004 by repealing 25% of the local 1% sales tax and then adopting a new 1/4-cent sales tax dedicated to repayment of the deficit reduction bonds. Cities and counties would then be "made whole" by the State from increased property tax allocations via reduced contributions to ERAF. This "triple flip" is theoretically revenue-neutral, and as such, the effective rate for revenue purposes remains at 1%.

4. In November 2006, voters in San Luis Obispo approved a local revenue measure (LRM) increasing the City tax rate by 1/2%, which became effective April 1, 2007. The sales tax measure has a sunset provision of 8 years. The local Sales Tax was extended as Measure G in the November 2014 election for 8 years.

5. Proposition 30, The Schools and Local Public Safety Protection Act of 2012 , was approved by California voters in November 2012 to temporarily increase the sales and use tax by 0.25%. The sales and use tax imposed by Proposition 30 expired December 31, 2016.

6. In November 2020, voters in San Luis Obispo approved a local revenue measure (LRM) increasing the local sales tax to 1.5% with an effective date of April 1, 2021. The local sales tax measure has no sunset provision and replaced the 2014 Measure G.

Source: State Board of Equalization, State of California Schedule 12
City of San Luis Obispo, California
Historical Sales and Use Tax Rates
175

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No. of No. of
Certificates Percent Certificates Percent
Construction 926 10.9% 897 10.7%
Manufacturing 136 1.6% 129 1.5%
Transportation/Utilities 50 0.6% 49 0.6%
Wholesale 127 1.5% 126 1.5%
Retail 1,017 11.9% 1167 13.9%
Professional 1,102 12.9% 1,185 14.2%
Residential Rental 2,759 32.3% 2,694 32.2%
Commercial Rental 297 3.5% 303 3.6%
Services 2,117 24.8% 1,821 21.8%
Total business certificates issued 8,531 100% 8,371 100% Home occupations 718 8.4% 667 8.0%
Located outside City limits 2,059 24.1% 1,932 23.1%
Located in Downtown Business Improvement District 584 6.8% 553 6.6% Source: City of San Luis Obispo Finance Department - Revenue Division Fiscal Years Ended June 30, 2023 and 2022
Schedule of Business Tax Certificates Issued
City of San Luis Obispo, California
Schedule 13
2023 2022

10.9%

1.6%

0.6%

1.5%

11.9%

12.9%

32.3%

3.5%

24.8%
Business Tax Types for Fiscal Year End 2023
Construction
Manufacturing
Transportation/Utilities
Wholesale
Retail
Professional
Residential Rental
Commercial Rental
Services
176

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Percentage of
Fiscal Lease Purchase Lease SBITA Lease Purchase Installment SBITA Total Primary Per Gross Assessed Year Bonds Financing Loans Liability Liability Bonds Financing Sales Agreement Loans Liability Government Capita Value 2013-14 22,152,010 $ 711,622 $ 850,775$ -$ -$ 27,083,025 $ $ - $ 8,979,000 $ 19,446,784 -$ 79,223,216 $ 1,742$ 1.27% 2014-15 28,556,715 1,127,606 766,092 - - 25,983,320 - 8,481,043 18,559,851 - 83,474,627 1,836 1.28% 2015-16 27,762,893 1,374,773 679,314 - - 25,323,405 - 7,932,327 17,647,622 - 80,720,334 1,741 1.16% 2016-17 26,328,540 1,898,652 591,647 - - 24,072,708 - 7,366,468 16,709,160 - 76,967,175 1,660 0.99% 2017-18 23,484,450 1,599,769 503,101 - - 21,815,204 - 6,783,114 15,743,808 - 69,929,446 1,497 0.88% 2018-19 22,171,441 1,413,937 413,667 - - 19,542,657 - 6,181,902 14,750,783 - 64,474,387 1,385 0.79% 2019-20 21,084,777 1,381,486 323,380 - - 18,185,089 - 5,562,462 26,133,837 - 72,671,031 1,583 0.76% 2020-21 20,038,779 734,673 232,111 - - 16,772,171 - 4,919,407 56,229,546 - 98,926,687 2,102 0.97% 2021-22 18,954,856 390,420 139,961 125,003 - 15,307,178 - 4,257,343 99,918,648 - 139,093,409 2,919 1.29% 2022-23 16,518,336 1,519,356 - 445,919 407,466 12,986,875 - 2,869,551 118,966,863 25,658 153,740,024 3,217 1.31% Source: City of San Luis Obispo Finance Department
Governmental Activities Business-Type Activities
Schedule 14
City of San Luis Obispo, California
Per Capita Outstanding Debt By Type
Last Ten Fiscal Years
$-
$20,000,000 $40,000,000 $60,000,000 $80,000,000
$100,000,000 $120,000,000 $140,000,000 $160,000,000
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Outstanding Debt Per Capita
Governmental Activities Business-Type Activities
177

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Service Ratio of Net
Total Taxable General Payable from Net Bonded Debt Net Bonded Assessed Bonded Enterprise Bonded to Assessed Debt per
Fiscal Year Population Value Debt Revenues Debt Value Capita 2013-14 45,473 6,638,376,426 0 0 0 0.0% 0
2014-15 45,484 7,026,808,772 0 0 0 0.0% 0
2015-16 46,117 7,488,160,228 0 0 0 0.0% 0
2016-17 46,724 7,938,176,014 0 0 0 0.0% 0
2017-18 46,548 8,179,683,454 0 0 0 0.0% 0
2018-19 46,802 9,052,361,899 0 0 0 0.0% 0
2019-20 45,920 9,521,174,265 0 0 0 0.0% 0
2020-21 47,063 10,249,056,144 0 0 0 0.0% 0
2021-22 47,653 10,822,583,714 0 0 0 0.0% 0
2022-23 47,788 11,770,822,169 0 0 0 0.0% 0
Notes:1. Valuations are established by the County Assessor of the County of San Luis Obispo, except for property owned by private utility companies, which is valued by the State of California.2. See Schedule of Demographic and Economic Statistics for population data. 3. Personal income information is not available. Net Bonded Debt is expressed as a ratio to Assessed Value. Source: HdL, Coren & Cone ACFR 2022-23 report - Demographic and Economic Statistics table Demographics changed from FY to Calendar Year
Last Ten Fiscal Years
Schedule 15
City of San Luis Obispo, California
Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capital 178

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Amount Applicable
Percent Applicable to the City of
to the City of San Luis Obispo
San Luis Obispo as of June 30, 2023
Overlapping tax and assessment debt:

San Luis Obispo Community College District 156,300,000 $ 16.851% 26,338,113 $ San Luis Coastal Unified School District 237,661,000 52.254% 124,187,379 City of San Luis Obispo Community Facilities District No. 2019-1 19,660,000 100.000% 19,660,000 Total overlapping tax and assessment debt 170,185,492
Overlapping General Fund long-term debt:

San Luis Obispo County General Fund Obligations 84,246,776 $ 16.920% 14,254,554 $ San Luis Obispo County Pension Obligations 26,295,037 16.920% 4,449,120 18,703,674
Direct long-term debt:

City of San Luis Obispo 2018 Water Revenue Refunding Bonds 100.000% 7,860,000 $ City of San Luis Obispo 2018 Lease Revenue Bonds 100.000% 12,350,000 City of San Luis Obispo 2014 LOVR Lease Revenue Bonds 100.000% 6,275,000 City of San Luis Obispo 2012 Refunding Revenue Bonds (2001) 100.000% 2,415,000 City of San Luis Obispo Lease liability 100.000% 570,922 City of San Luis Obispo Subscription based IT agreements liability 100.000% 407,465 City of San Luis Obispo Lease-purchase financing 100.000% 36,245 City of San Luis Obispo energy conservation loan 100.000% 46,887 City of San Luis Obispo Unamortized bond premium 100.000% 1,050,308 Less self-supporting issues:

City of San Luis Obispo 2018 Water Revenue Refunding Bonds (7,860,000) City of San Luis Obispo obligations supported by enterprise revenues (4,260,750) Total direct debt 18,891,077
$ 207,780,243
Total direct and overlapping long-term debt
Ratio of long-term debt to assessed valuation and population Gross Assessed Valuation $ 11,770,822,169
Population 47,788
Percent of Gross Per Capita
Amount Assessed Valuation Long-Term Debt
Direct and Overlapping Debt:

Gross $ 219,900,993 1.9% $4,601.59
Net 207,780,243 1.8% 4,348
Direct Debt:

Gross $ 31,011,827 0.3% $648.95
Net 18,891,077 0.2% 395
Source: California Municipal Statistics, Inc., HdL, Coren & Cone ACFR 2022-23 report - Demographic and Economic Statistics table Schedule 16
City of San Luis Obispo, California
Direct and Overlapping Long-Term Debt
Fiscal Year Ended June 30, 2023
The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. 179

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2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Legal debt limit $ 241,812 244,175$ 272,833$ 288,836$ 306,738$ $ 339,464 $ 357,044 $ 384,339 $ 405,847 $ 441,406 Total debt applicable to limitLegal debt margin 241,812 244,175 272,833 288,836 306,738 339,464 357,044 384,339 405,847 441,406 Total debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Legal Debt Margin Calculation for Fiscal Year 2022-23Gross Assessed Valuation $ 11,770,822,169 Legal Debt Limit - 3.75% of Gross Assessed Valuation $ 441,405,831 Long-term Debt:

Revenue Bonds Secured by Capital Leases $ 21,040,000
Water Revenue Bonds 7,860,000
28,900,000
Less deductions allowed by law:

Revenue Bonds Secured by Capital Leases 21,040,000
Water Revenue Bonds 7,860,000
28,900,000
Total debt applicable to computed limit $0
Legal debt margin $ 441,405,831
Note: The California Government Code provides for a legal debt limit of 15% of gross assessed valuation based on 25% of market value, or a legal debt limit of 3.75%. The City's debt management policy, however, sets a more restrictive debt limit of 2% of assessed valuation. (Amounts Expressed in Thousands)
Last Ten Fiscal Years
Computation of Legal Debt Margin
City of San Luis Obispo, California
Schedule 17
180

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Less Operating & Net Revenue Coverage
Fiscal Operating Development Other Maintenance Available for With Year Revenues Impact Fees Revenues Expenses Bond Debt Service Principal Interest Total Coverage Impact Fees 2013-14 19,676,199 (819,477) 215,915 (13,996,427) 5,076,210 1,160,700 964,148 2,124,848 239% 277% 2014-15 20,552,417 (2,471,501) 59,594 (13,451,298) 4,689,212 1,285,686 906,775 2,192,461 214% 327% 2015-16 20,137,422 (1,543,268) 53,731 (14,056,603) 4,591,282 1,245,486 881,318 2,126,804 216% 288% 2016-17 19,873,517 (1,266,674) 410,484 (14,754,114) 4,263,213 1,290,748 837,657 2,128,405 200% 260% 2017-18 21,997,054 (2,131,345) 325,268 (16,250,751) 3,940,226 1,336,267 792,337 2,128,604 185% 285% 2018-19 23,992,758 (3,745,666) 948,324 (15,995,459) 5,199,957 2,281,739 858,471 3,140,210 166% 285%2019-20 25,666,777 (3,723,460) 663,838 (19,485,472) 3,121,683 1,367,920 637,348 2,005,268 156% 341%2020-21 28,340,076 (4,744,361) 65,386 (17,765,625) 5,895,476 960,390 527,682 1,488,072 396% 715%2021-22 29,671,678 (5,160,020) 222,451 (17,296,355) 7,437,754 1,001,055 489,266 1,490,321 499% 845% 2022-23 27,472,542 (3,616,307) 248,134 (18,530,525) 5,573,844 1,036,530 449,224 1,485,754 375% 619% Notes:2. The City refinanced its 2005 Refunding Lease Revenue Bonds, 2006 Lease Revenue Bonds, and 2009 Lease Revenue Bonds into the 2018 Lease Revenue Bonds.

4. Net revenues available for debt service exclude development impact fees. 5. Operating expenses exclude depreciation and amortization.Source: City of San Luis Obispo Utilities Department FY 2022-23- Debt Schedule for 2021-23 Financial Plan
Schedule 18
City of San Luis Obispo, California
Revenue Bond Coverage - Water Fund
Last Ten Fiscal Years

3. Principal and interest amounts do not include the subordinate private placement loan retired in 2013.

Bonded Debt Service Requirements

1. Debt service requirements include 2012 Refunding Revenue Bonds, 2006 Refunding Revenue Bonds, and the 2004 state revolving loan 181

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Net Revenue
Fiscal Gross Operating Available for
Year Revenues Expenses Bond Debt Service Principal Interest Total Coverage 2013-14 4,122,860 (2,488,797) 1,634,063 690,600 361,822 1,052,422 155% 2014-15 4,905,494 (2,409,027) 2,496,467 447,962 504,407 952,369 262% 2015-16 4,606,249 (2,757,299) 1,848,950 466,185 501,631 967,816 191% 2016-17 4,659,562 (2,671,028) 1,988,534 481,981 487,407 969,388 205% 2017-18 6,651,038 (2,998,555) 3,652,483 498,058 469,314 967,372 378% 2018-19 5,443,038 (3,100,113) 2,342,925 381,250 226,931 608,181 385% 2019-20 3,840,059 (3,080,588) 759,471 237,900 201,866 439,766 173% 2020-21 2,768,419 (3,093,183) (324,764) 247,050 192,350 439,400 (74%) 2021-22 4,890,317 (3,552,603) 1,337,714 257,725 182,468 440,193 304% 2022-23 6,022,372 (4,148,805) 1,873,567 265,350 172,159 437,509 428% Notes:

1. In 1994 the Capital Improvement Lease Revenue Bonds were refinanced resulting in new debt of $11,780,000, of which $7,421,400 is designated for the Parking Fund. In 2004 the 1994 bonds were refinanced with a maturity date of 2014. In 2006 Lease Revenue Bonds were issued resulting in new debt of $16,160,000, of which $8,726,400 is allocated to the Parking Fund.3. Operating expenses exclude depreciation.Source: City of San Luis Obispo Finance Department.

FY 2022-23- Debt Schedule for 2021-23 Financial Plan
Schedule 19
City of San Luis Obispo, California
Revenue Bond Coverage - Parking Fund
Last Ten Fiscal Years

2. The City refinanced its 2005 Refunding Lease Revenue Bonds, 2006 Lease Revenue Bonds, and 2009 Lease Revenue Bonds into the 2018 Lease Revenue Bonds. Resulting in new debt of $16,905,000, of which $5,156,025 is allocated to the Parking Fund.

Bonded Debt Service Requirements
182

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Personal Public Elementary and Cuesta College
Calendar Income Median Secondary School Full Time Enrollment Unemployment Year Population (1) in 000's (2) Age (2) Enrollment (3) SLO Campus (4) Rate (2) 2013 45,473 1,242 25.3 7,366 5,751 5.7%
2014 45,484 1,191 25.0 7,636 5,116 5.9%2015 46,117 1,211 25.0 7,638 5,402 4.9%2016 46,724 1,270 25.4 7,718 4,757 4.5%2017 46,548 1,300 26.1 7,755 4,988 3.2%2018 46,802 1,398 26.5 7,813 4,515 2.5%2019 45,920 1,505 26.2 7,801 4,627 2.4%2020 47,063 1,625 26.7 7,491 1,114 7.7%2021 47,653 1,717 26.7 7,537 2,174 5.0%2022 47,788 1,865 26.0 7,717 2,994 2.6% Sources:1. Beginning in 2020, population data source is US Census2. HdL, Coren & Cone ACFR 2022-23 report - Demographic and Economic Statistics table4. https://www.cuesta.edu/about/depts/research/Enrollment_Management.html Post Term FTES Dashboard, 320 Year Reported by academic year start date Schedule 20
City of San Luis Obispo, California
Demographic and Economic Statistics
For The Last Ten Calendar Years

3. CA Dept of Education DataQuest: Enrollment Reports for San Luis Coastal Unified, by Academic Year start date; https://www.cde.ca.gov/sdprofile/details.aspx?cds=40688090000000 183

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Percentage Percentage
Number of Total City Number of Total City
Employer Employees Rank Employment Employees Rank Employment Cal Poly State University 1 12.46% 3,178 3,055 1 10.70% County of San Luis Obispo 2 10.54% 2,688 2,465 2 8.80%
Cal Poly Corporation (Foundation) 3 9.72% 2,478 1,400 5 4.90% Pacific Gas & Electric Company 4 8.45% 2,155 1,900 3 6.70% California Men's Colony 5 5.98% 1,525 1,540 4 5.40%
San Luis Coastal Unified School District 6 5.14% 1,311 902 6 3.20% Cuesta Community College 7 3.53% 900 440 9 1.50%
Sierra Vista Regional Medical Center 9 2.82% 720
City of San Luis Obispo 10 2.79% 712
French Hospital Medical Center 8 2.50% 637
Mindbody 650 7 2.30%
California Department or Transportation 544 8 1.90%
Community Action Partnership 410 10 1.40%
Total 15,667 61.44% 13,306 46.80%
Source for the 2022-23 employers information is the Major Employers in San Luis Obispo County from State of California Employment Development Department's website;
https://labormarketinfo.edd.ca.gov/majorer/countymajorer.asp?CountyCode=000079. 2013-14 data is from the City's ACFR.
2022-23 2013-14
Schedule 21
City of San Luis Obispo, California
Principal Employers
Current Year and Nine Years Ago

61.44%

36.06%
City Wide Employers for 2022-23
Top 10 Employers All Other Employers p

12.46%

10.54%

8.45% 9.72%

5.98%

5.14%

3.53%

2.82%

2.79%

2.50%
Top Ten Employers for 2022-23
Cal Poly State University County of San Luis Obispo
Cal Poly Corporation (Foundation) Pacific Gas & Electric Company California Men's Colony San Luis Coastal Unified School District Cuesta Community College Sierra Vista Regional Medical Center City of San Luis Obispo French Hospital Medical Center
184

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Function 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Public Safety
Police Sworn 60.0 60.0 61.0 61.0 61.5 61.5 64.5 65.0 64.0 64.0 Non-sworn 25.5 25.5 25.5 25.5 24.0 24.0 24.0 25.5 27.0 27.0 Fire Sworn 49.0 49.0 50.0 47.0 47.0 47.0 47.0 47.0 47.0 47.0 Non-sworn 4.0 4.0 4.0 10.0 10.0 10.0 10.0 9.5 10.5 10.5 Public Utilities 64.8 64.8 67.1 69.1 69.1 69.1 69.1 69.9 70.6 70.6 Transportation 28.9 28.9 36.8 36.8 36.8 36.8 36.8 37.1 43.3 44.3 Culture and recreation 34.0 34.0 35.0 35.0 35.0 35.0 34.0 33.0 43.0 43.0 Community Development 39.5 40.0 51.0 51.0 47.4 47.9 47.5 47.5 54.5 54.5 General Government 56.0 56.0 57.0 61.0 61.0 62.3 64.8 72.3 87.8 87.8 Total 361.7 362.2 387.4 396.4 391.8 393.6 397.7 406.8 447.7 448.7 Ratio of Sworn Police Personnel per 1,000 Population:* 1.32 1.32 1.33 1.31 1.34 1.31 1.34 1.34 1.34 1.34 Ratio of Sworn Fire Personnel per 1,000 Population:* 1.08 1.08 1.06 1.01 0.99 1.00 1.02 0.99 0.99 0.99 *Population numbers may not include Cal Poly students or faculty that live on campus and are served by City personnel.Note: See Schedule of Demographic and Economic Statistics for population data.Source: City of San Luis Obispo Finance Department Schedule 22
City of San Luis Obispo, California
Regular Authorized Positions
Last Ten Fiscal Years
185

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2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Function/Program:Police:Calls for police/fire service 34,659 36,515 38,300 39,620 39,103 37,825 37,335 40,907 44,183 43,104 Incident numbers issued 29,277 31,048 32,542 33,360 32,730 31,471 31,472 35,695 38,290 36,474 Police reports written 8,665 8,435 8,852 8,675 7,735 6,999 6,297 5,852 6,637 6,137 Violations cited 5,793 6,648 7,673 7,649 7,524 5,874 4,020 3,445 3,735 4,851 Citations issued 5,275 6,204 7,038 7,030 6,752 5,287 3,660 3,056 3,349 4,531 Collision reports 625 630 587 608 609 623 481 419 483 487 Violent crimes:* 158 237 173 177 178 191 187 201 225 266 Willful homicide* 0 0 0 0 0 1 0 1 2 -
Forcible rape* 31 44 29 38 44 55 39 37 25 37
Robbery* 26 25 13 21 23 33 34 24 33 37
Aggravated assault* 101 168 131 118 111 103 114 139 165 192 Property crimes:* 713 542 637 731 644 728 728 793 885 985 Burglary** 328 206 225 251 172 244 277 284 272 254
Motor vehicle theft* 63 71 87 95 94 74 74 117 174 119
Larceny-theft:* 1,384 1,162 1,335 1,730 1,516 1,493 1,387 1,219 1,398 1,372 Over $400* 322 265 325 385 378 410 377 392 439 612
$400 and under* 1,062 897 1,010 1,345 1,138 1,083 1,010 827 959 760 Fire:Medical responses (Note 1) 3,232 3,417 3,540 4,538 4,248 3,715 3,884 3,544 3,857 4,675 Fire suppression responses (Note 1) 105 111 151 143 163 122 127 133 136 146 Hazardous materials responses (Note 1 and 3) 15 21 22 21 17 25 29 98 133 153 Other responses (Note 1) 1,840 1,929 2,158 1,799 1,785 2,100 2,140 1,745 2,097 2,417 Total service responses 5,192 5,478 5,871 6,501 6,213 5,962 6,180 5,520 6,223 7,391 Fire Suppression Training Hours 8,782 8,149 6,714 6,348 7,719 8,410 10,835 11,033 16,015 20,814Fire and life-safety inspections (Note 4) 644 2,476 2,516 3,756 3,738 2,002 3,128 1,871 2,092 1,790 Arson investigations (Note 2) 44 17 44 8 12 24 21 13 5 17 Education activities (# of people) 23,945 23,697 23,680 23,575 23,540 2,690 2,700 2,031 2,000 3,500Public Utilities:Water/Sewer customer accounts 14,899 14,953 15,167 15,188 15,505 15,555 15,672 15,958 16,256 16,703 Miles of sewerline 137 137.6 137.6 138 143 143 146 148 148 148 Miles of waterline 187 *187 191 197 187 190 191 191 191 191 Water service line repairs and renewals (incl. recyc 60 50 50 57 38 48 35 47 53 58 Sewer main stoppages 15 13 11 4 10 8 11 14 12
Acre feet of water delivered - Nacimiento 1506 839 3574 3817 3753 3484 1470 2449 4460 2,096 Acre feet of water delivered - Salinas 1,444 1,986 8 273 853 790 2,165 1,337 650 949 Acre feet of water delivered - Whale Rock 3,212 2,615 1,375 949 924 800 1,556 1,641 399 2,118 Continued
Schedule 23
City of San Luis Obispo, California
Operating Indicators and Capital Asset Statistics by Function Last Ten Fiscal Years
186

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Schedule 23
City of San Luis Obispo, California
Operating Indicators and Capital Asset Statistics by Function Last Ten Fiscal Years
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Function/Program:Transportation:Signals and lights: Intersections with traffic signals 70 68 70 70 70 70 70 72 73 73 Traffic signal service requests 85 80 85 90 60 71 59 93 145 188 Streetlights operated & maintained 2,300 2,300 2,300 2,300 2,280 2,280 2,280 2,400 2,477 2,531 Streetlight service requests 180 175 45 50 13 8 11 33 47 61 Roadways: Estimated miles of paved streets 133 133 133 133 134 197 134 137 135 148 Pavement condition index 72 72 71 71 70 73 70 73 70 76
Traffic collisions 660 720 531 482 501 431 441 259 361 388 Parking spaces provided (lot, garage & street) 3,119 3,176 2,953 2,892 2,871 2,865 2,865 2,765 2,817 2,607 Parking citations written 23,957 20,690 24,213 23,348 21,647 24,415 21,240 17,748 39,254 44,439 Total transit passengers 1,122,000 1,099,274 1,209,708 1,131,716 945,288 981,995 715,380 179,456 528,000 515,007 Leisure, Cultural and Social Services (Note 5):Open space acres maintained 3,510 3,510 3,510 3,510 3,775 4,040 4,040 4,040 4,040 4,040 Open space easement acres 3,200 3,200 3,200 3,200 3,200 3,500 3,500 3,500 3,500 3,500 Trail mileage 49 49 52 52 55 55 56 62 65 65
Total golf rounds played 34,766 33,674 30,572 28,196 35,670 24,662 16,428 24,222 17,991 16,392 Acres of park landscape maintained 157 157 157 157 500 570 530 106 106 107 City Maintained Trees 18,700 19,000 20,000 20,000 20,000 20,000 20,000 12,970 12,970 12,976 Children's services program enrollment totals 2,338 2,360 2,115 2,115 1,950 2,050 1,775 1,483 1,611 1,834Annual Senior Center Membership 265 331 350 315 192 248 325 Facility permits processed 1,416 836 1,305 1,073 864 909 650 298 455 714 Annual aquatics attendance (total) 73,903 83,107 68,403 96,687 97,701 87,690 55,202 51,235 62,224 66,621 Adult athletic teams registered 338 320 325 325 362 292 184 112 168 167Youth athletic participants registered 1,200 1,350 1,300 1,150 1,115 1,140 618 611 1,083 1,180 Special event applications processed 103 103 77 101 88 95 40 2 37 45 Banner permits processed 82 47 87 56 45 81 78 48 26 80
Instructional class enrollments 1,424 1,751 1,151 1,724 1,439 1,118 595 626 1,212 900 Continued
Continued
187

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Schedule 23
City of San Luis Obispo, California
Operating Indicators and Capital Asset Statistics by Function Last Ten Fiscal Years
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Function/Program:Community Development (Note 6):Housing characteristics: Single family units (annually cumulative) 10,994 11,133 11,230 11,306 11,413 11,510 11,693 11,853 12,072 12,169 2-4 units (annually cumulative) 2,656 2,692 2,695 2,789 2,851 2,865 2,869 2,888 2,928 2,977 5 or more unit structures (annually cumulative) 5,647 5,767 5,804 6,038 6,097 6,148 6,209 6,309 6,524 6,678 Mobile homes (annually cumulative) 1,482 1,482 1,482 1,482 1,482 1,482 1,483 1,483 1,483 1,448 Total (annually cumulative) 20,779 21,074 21,211 21,615 21,843 22,005 22,254 22,533 23,007 23,272 Building permits issued (Note 7): 511 597 584 584 623
Residential: Single family residential incl. condos 59 114 97 62 125 159 171 253 202 157 Multi-family residential (includes second units & 32 8 5 13 18 19 17 33 16 24 Non-residential 9 27 13 14 10 15 12 2 3 11
Additions, alterations, demolitions 458 460 522 545 502 381 510 371 366 415 Other improvements (motel rooms) 1 60 Total 534 633 637 634 655 575 710 659 587 667 Approximate value of building permits (in thousands) Residential: Single family residential $ 15,412 36,722$ 26,441$ 15,024$ 19,707$ 24,300$ 28,026$ 50,758$ 35,824$ 31,058 Multi-family residential $ 6,744 26,499$ 13,500$ 8,172$ 17,249$ 21,162$ 33,606$ 10,545$ 56,085$ 20,985 Non-residential $ 15,310 9,791$ 11,484$ 51,110$ 6,248$ 20,430$ 16,981$ 17,475$ 22,665$ 44,601 Other permits:

Additions, alternations, demolitions (incl. swimm$ 19,139 22,897$ 30,230$ 27,711$ 14,928$ 34,596$ 60,812$ 78,780$ 29,207$ 58,766 Total $ 56,605 95,909$ 81,655$ 102,017$ 58,132$ 100,488$ 139,425$ 157,558$ 143,783$ 155,410 Building inspections conducted 8,996 6,641 7,195 10,745 9,974 7,537 8,670 7,959 10,470 10,423 Home occupation permits processed/applied for 129 113 163 144 112 112 131 133 140 101 Development permit applications received 311 293 253 236 215 215 338 269 282 157 Continued
Continued
188

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Schedule 23
City of San Luis Obispo, California
Operating Indicators and Capital Asset Statistics by Function Last Ten Fiscal Years
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Function/Program:General Government:Business tax certificates issued: Located outside City limits 1,472 1,602 2,018 1,699 1,872 1,948 1,839 1,913 1,932 2,057 Total certificates issued 6,934 7,805 7,597 8,118 8,230 8,205 7,675 7,732 8,371 8,531 Citywide recruitments (total) 105 129 103 103 97 99 86 90 155 142 Fleet vehicles maintainedCity-wide fleet & equipment assets 290 300 318 323 339 338 340 345 347 365 Replaces prior categoryTelephone lines managed 995 1,037 1,005 998 907 971 963 1,071 1,101 1,101 Cell phones & modems supported 383 460 453 476 492 481 487 464 538 595 IT users supported 490 511 515 467 471 488 475 487 511 560

1. In Fiscal year 2010-11, numbers reported used observed code from Spillman rather than condition code. 2. Police Department Conducts Arson Investigations, Fire Department Conducts Cause and Origin Investigations. Reported number is Cause and Origin Investigations5. Leisure, Culture and Social Services Indicators for FY 19-20 were lower compared to previous years due to COVID-19 program closures and capacity restrictions.7. Excludes special permits such as plumbing, mechanical, electrical, signs, and grading as well as plan check permits.Source: City of San Luis Obispo Departments

4. Beginning in 2020, the fire department began utilizing new mobile inspection software that uses a different inspection methodology counting the building rather than the number of individual units within the building. 6. Beginnig in 2016-17, building permit data reported in terms of calendar years, in alignment with State-mandated reporting requirements. Beginning in 2019-20 all Community Development Indicators are reported by calendar year.

Continued

3. Beginning in 2020-21, the Fire Department includes all "Hazardous Condition" calls for service as categorized by the National Fire Incident Reporting System (NFIRS). Previously only chemical or flammible liquid spills were captured under this function. Moving forward this function also includes electrical and biological hazards among others. 189

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Fiscal Historic Increase/ Sales Increase/ Deliveries Increase/ Year Connections (Decrease) Revenues (Decrease) In Acre Feet (Decrease) 2013-14 14,899 0.01% 18,398,901 13.83% 5,933 2%
2014-15 14,847 0.01% 17,530,717 -4.72% 5,354 (10%)
2015-16 15,167 1.40% 17,939,024 2.33% 4,957 (7%)
2016-17 15,357 1.25% 18,196,937 1.44% 5,039 2%
2017-18 15,505 0.96% 19,159,169 5.29% 5,530 10%
2018-19 15,555 0.32% 19,577,182 2.18% 5,074 (8%)
2019-20 15,672 0.75% 21,519,632 9.92% 5,191 2%
2020-21 15,958 1.82% 22,757,325 5.75% 5,602 8%
2021-22 16,256 1.87% 24,129,231 6.03% 5,732 2%
2022-23 16,703 2.75% 23,297,077 -3.45% 5,130 (11%)
Source: City of San Luis Obispo Utilities Department.

Schedule 24
City of San Luis Obispo, California
Water System
Statistical Data
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
Sales Revenues
-5.00%

0.00%

5.00%

10.00%

15.00%
Revenue Increase/Decrease
190

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As of Monthly Multi-family Single family
June 30 of Each Year Consumption Price per hcf* dwelling Commercial Landscape dwelling Multi-family dwelling Commercial 2014 Base Fee $ 5.28 $7.73 min. charge per $7.73 min. charge per $7.73 min. charge per 1-8 hcf 6.56 dwelling unit dwelling unit dwelling unit8 + hcf 8.20 $8.52/unit volume charge** $8.52/unit volume charge** $8.52/unit volume charge 2015 Base Fee $ 9.98 $7.96 min. charge per $7.96 min. charge per $7.96 min. charge per 1-8 hcf 6.92 dwelling unit dwelling unit dwelling unit
8 + hcf 8.65 $8.77/unit volume charge** $8.77/unit volume charge** $8.77/unit volume charge 2016 Base Fee $ 9.98 $8.32 min. charge per $8.32 min. charge per $8.32 min. charge per Base Fee Drought Surcharg 0.74 dwelling unit dwelling unit dwelling unit 1-8 hcf 6.92 $9.17/unit volume charge** $9.17/unit volume charge** $9.17/unit volume charge Drought Surcharge 1.10
9 + hcf 8.65
Drought Surcharge 1.37
2017 Base Fee 9.98 $ $8.57 min. charge per $8.57 min. charge per $8.57 min. charge per Base Fee Drought Surcharg 0.74 dwelling unit dwelling unit dwelling unit 1-8 hcf 6.92 $9.44/unit volume charge** $9.44/unit volume charge** $9.44/unit volume charge Drought Surcharge 1.10
9 + hcf 8.65
Drought Surcharge 1.37
2018 Base Fee 12.33 $ $8.57 min. charge per $8.57 min. charge per $8.57 min. charge per 1-8 hcf 7.27 dwelling unit dwelling unit dwelling unit9 + hcf 9.08 $9.44/unit volume charge** $9.44/unit volume charge** $9.44/unit volume charge 2019*** Residential SFR Base Fee 20.61 $ Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined 1-5 hcf 5.90 by meter size**** by meter size**** by meter size**** by meter size **** by meter size **** by meter size **** 6-12 hcf 6.87 $6.73/unit volume charge$8.17/unit volume charge$10.02/unit volume charge $7.85/unit volume charge** $7.85/unit volume charge** $7.85/unit volume charge** 13 + 12.59
2020 Residential SFR Base Fee 21.74 $ Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined 1-5 hcf 6.22 by meter size**** by meter size**** by meter size**** by meter size **** by meter size **** by meter size **** 6-12 hcf 7.25 $7.10/unit volume charge$8.62/unit volume charge$10.57/unit volume charge $8.28/unit volume charge** $8.28/unit volume charge** $8.28/unit volume charge** 13 + 13.28
2021 Residential SFR Base Fee 22.52 $ Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined 1-5 hcf 6.44 by meter size**** by meter size**** by meter size**** by meter size **** by meter size **** by meter size **** 6-12 hcf 7.51 $7.36/unit volume charge$8.93/unit volume charge$10.95/unit volume charge $8.58/unit volume charge $8.58/unit volume charge $8.58/unit volume charge 13 + 13.76
Continued
Schedule 25
City of San Luis Obispo, California
Water and Sewer Rates
Last Ten Fiscal Years
Water Rates (Note 1) Sewer Rates (Monthly)
191

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Schedule 25
City of San Luis Obispo, California
Water and Sewer Rates
Last Ten Fiscal Years
As of Monthly Multi-family Single family
June 30 of Each Year Consumption Price per hcf* dwelling Commercial Landscape dwelling Multi-family dwelling Commercial 2022 Residential SFR Base Fee 23.31 $ Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined 1-5 hcf 6.67 by meter size**** by meter size**** by meter size**** by meter size **** by meter size **** by meter size **** 6-12 hcf 7.77 $7.62/unit volume charge$9.24/unit volume charge$11.33/unit volume charge $8.88/unit volume charge $8.88/unit volume charge $8.88/unit volume charge 2023 Residential SFR Base Fee 24.12 Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined 1-5 hcf 6.9 by meter size**** by meter size**** by meter size**** by meter size **** by meter size **** by meter size **** 6-12 hcf 8.04 $7.88/unit volume charge$9.57/unit volume charge$11.73/unit volume charge $9.19/unit volume charge $9.19/unit volume charge $9.19/unit volume charge 13 + 14.74
*hcf = 100 cubic feet** Total monthly volume charge capped based on average winter water consumption.*** Beginning FY 18-19, different rate structures for SFR, Multi-Family, Commercial, and Landscape****See table below*****2020-21 rate increase deferred to February 1, 2021 due to COVID-19Notes:1. Rates are for services inside the City, outside the City rates are double.2. Third tier applies only to single-family residential customers.Source: City of San Luis Obispo Utilities Department 3-inch 217.44 197.184-inch 362.45 328.706-inch 724.73 657.198-inch 1,159.60 1,051.54 10-inch 1,511.75
2021***** 3/4 inch or less $ 22.52 $ 20.43 2022 3/4 inch or less $ 23.31 21.15 $ 1-inch 37.60 34.12 1-inch 38.92 35.31

1.5-inch 75.04 68.02 1.5-inch 77.67 70.40
2-inch 120.06 108.88 2-inch 124.26 112.69
3-inch 225.27 204.28 3-inch 233.15 211.43
4-inch 375.50 340.53 4-inch 388.64 352.456-inch 750.82 680.85 6-inch 777.10 704.688-inch 1,201.35 1,089.40 8-inch 1,243.40 1,127.53 10-inch - 1,566.17 10-inch - 1,620.99
Water Rates (Note 1) Sewer Rates (Monthly)
Continued
192

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Service Water Use Percent of
Name Type (acre-feet) Total
City of San Luis Obispo Parks & Golf Landscape 83.77 1.6% Silver City Mobile Home Park Mobile Homes 54.83 1.1%
Dignity Health #366 Care Facilities 41.49 0.8%
Creekside Community Mobile Homes 30.83 0.6%
Sierra Vista Hospital Care Facilities 29.45 0.6%
ELL-CAP 97-Laguna Lake Community Mobile Homes 28.35 0.6% Embassy Suites Hotel 27.96 0.5%
SLO Coastal Unified School 24.77 0.5%
CAP VIII - Mustang Village LLC Apartments 22.42 0.4%
Fiero Lane Water Co Utility 17.89 0.3%
All Other 92.9%
Total 361.76 100.00%
Source: City of San Luis Obispo - Utilities Department
Schedule 26
City of San Luis Obispo, California
Water System - Ten Largest Water Users
Fiscal Year Ended June 30, 2023

1.6%

1.1%

0.6% 0.8%

0.6%

0.5%

0.4%

0.3%
Ten Largest Water Users
City of San Luis Obispo Parks & Golf
Silver City Mobile Home Park
Dignity Health #366
Creekside Community
Sierra Vista Hospital
ELL-CAP 97-Laguna Lake Community
Embassy Suites
SLO Coastal Unified
CAP VIII - Mustang Village LLC
Fiero Lane Water Co
0 92.9%

7.1%
Ten Largest Water Users vs All
Other Water Users
All Other
Top 10
193

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City of San Luis
Obispo
San Luis Obispo, California
Single Audit Reports
For the year ended June 30, 2023

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City of San Luis Obispo
Single Audit Reports
For the year ended June 30, 2023
Table of Contents
Page
Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .................................................................... 1 Report on Compliance for Each Major Federal Program and on Internal Control over Compliance in Accordance with the Uniform Guidance And on the xxxxSchedule of Expenditures of Federal Awards......................................................................... 3 Schedule of Expenditures of Federal Awards ..................................................................................................... 7 Notes to the Schedule of Expenditures of Federal Awards .............................................................................. 8 Schedule of Findings and Questioned Costs ....................................................................................................... 9

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REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of San Luis Obispo, California (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated December 15 , 2023.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. However, as described in the accompanying schedule of findings and responses, we identified certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiencies described in the accompanying schedule of findings and questioned costs as item 2023-001 to be material weaknesses.

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To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California

Page 2 ends

A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiencies described in the accompany schedule of findings and questioned costs as item 2023-002 to be significant deficiencies.

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

City of San Luis Obispo’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the findings identified in our engagement and described in the accompanying schedule of findings and questioned costs. City’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Badawi & Associates, CPAs
Berkeley, California
December 15, 2023
2

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REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL

OVER COMPLIANCE IN ACCORDANCE WITH THE UNIFORM GUIDANCE AND ON THE

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Independent Auditor’s Report
To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of San Luis Obispo, California’s (City) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2023. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2023.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS) ; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States(Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

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To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California

Page 2 ends

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.

Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. 4

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To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California

Page 3 ends

Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated December 15, 2023, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of 5

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To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California

Page 4 ends

America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Badawi & Associates, CPAs
Berkeley, California
December 15, 2023
6

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City of San Luis Obispo
Schedule of Expenditures of Federal Awards
For the year ended June 30, 2023
Assistance State
Listing Pass-through Program Subrecipient
Grantor Agency and Grant Title Number Number Expenditures Payments U.S. Department of Transportation
Highway Planning and Construction Cluster
Passed Through the State of California Department of Transportation Highway Planning and Construction 20.205 HSIPL - 5016(053) $ - 1,514 $ Subtotal Highway Planning and Construction Cluster 1,514 - Federal Transit Cluster
Direct Program:

Federal Transit Formula Grants 20.507 4,083,165 -
Subtotal Federal Transit Cluster 4,083,165 -
Total U.S. Department of Transportation 4,084,679 -
U.S. Department of Justice
Direct Programs:

Bulletproof Vest Partnership Program 16.607 7,546
Edward Bryne Memorial Justice Assistance Grant Program 16.738 14,941 - Total U.S. Department of Justice 22,487 -
U.S. Department of Housing and Urban Development
CDBG-Entitlement Grants Cluster
Passed Through County of San Luis Obispo
Community Development Block Grants/Entitlement Grants 14.218 B-22-UC-06-0508 34,595 - Total U.S. Department of Housing and Urban Development 34,595 - U.S. Department of Health and Human Services
Passed Through California Department of Community Services and Development Low Income Household Water Assistance Program 93.499 54,488 - Total U.S. Department of Health and Human Services 54,488 - U.S. Department of Homeland Security
Direct Program:

FEMA Assistance to Firefighters Grant 97.044 38,473 -
Total U.S. Department of Homeland Security 38,473 -
U.S. Department of the Treasury
Passed through California State Water Resources Control Board Coronavirus State & Local Fiscal Recovery Funds 21.027 3940COVIDARREAR 148,496 - Direct Program:

Coronavirus State & Local Fiscal Recovery Funds 21.027 2,500,000 1,700,000 Total U.S. Department of the Treasury 2,648,496 1,700,000 Total Expenditures of Federal Awards $ 6,883,218 $ 1,700,000 See accompanying Notes to Schedule of Expenditures of Federal Awards. 7

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City of San Luis Obispo
Notes to the Schedule of Expenditures of Federal Awards For the year ended June 30, 2023
A. Reporting Entity
The City is a California charter city. It was incorporated on February 19, 1856 and chartered on May 1, 1876. It is organized in accordance with the Council-Mayor-City Manager form of government. With a population of approximately 47,788, the City provides a broad range of municipal services, including police and fire protection, parks and recreation, water and sewer utilities, street maintenance, public transportation, parking, planning, and building and safety.

B. Basis of Accounting
Funds received under the various grant programs have been recorded within the special revenue funds of the City. The City utilizes the modified accrual method of accounting for the special revenue funds.

Modified accrual accounting recognizes revenues when they become available and measurable and, with a few exceptions, recognizes expenditures when liabilities are incurred. The accompanying Schedule of Expenditures of Federal Awards (Schedule) has been prepared on the modified accrual basis of accounting.

C. Relationship of Schedule of Expenditures of Federal Awards to Financial Statements The accompanying Schedule presents the activity of all federal financial assistance programs of the City.

Federal financial assistance received directly from federal agencies as well as federal financial assistance passed through the State of California is included in the Schedule.

The Schedule was prepared only from the accounts of various grant programs and, therefore, does not present the financial position or results of operations of the City.

D. Pass-Through Entities’ Identifying Number
When federal awards were received from a pass-through entity, the Schedule shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the City determined that no identifying number is assigned for the program or the City was unable to obtain an identifying number from the pass-through entity.

E. Indirect Costs
The City did not elect to use the 10% de minimis indirect cost rate. 8

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City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2023
Section I - Summary of Auditor’s Results
Financial Statements
Types of auditor’s report issued: Unmodified
Internal control over financial reporting:
 Material weakness(es) identified? Yes
 Significant deficiency(ies) identified? Yes
Any noncompliance material to the financial statements noted? No Federal Awards
Internal control over major programs:
 Material weakness(es) identified? No
 Significant deficiency(ies) identified? None noted
Type of auditor’s report issued on compliance for major programs Unmodified Any audit findings disclosed that are required to be reported in Accordance with section 200.516(a) No
Identification of major programs:

Assistance Listing Number(s) Name of Federal Program or Cluster Expenditures

20.507 Federal Transit Formula Grants $ 4,083,165

21.027 Coronavirus State & Local Fiscal Recovery Funds 2,648,496 Total Expenditures of All Major Federal Programs $ 6,731,661 Total Expenditures of Federal Awards $ 6,883,218
Percentage of Total Expenditures of Federal Awards 97.8% Dollar threshold used to distinguish between type A and type B program $750,000 Auditee qualified as low-risk auditee under
section 200.520? No
9

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City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2023
Section II – Current Year Findings
A. Financial Statement Audit Finding
2023-001 Journal Entries Posting (Material Weakness)
Criteria: The access to post journal entries in the general ledger should be restricted. Journal entries should be independently prepared, reviewed before being posted to the general ledger.

Condition: During the review of the City’s journal entry approval matrix and JE testing, we noted the posting from the subledger to GL do not require approvals at the general ledger level nor at the subledger level. Considering the number of employees who can post entries through subledger without review and the fact that corrections to payroll, payable, revenue/receivables, cash management, capital assets all can be posted through subledger and do not require approval, it increased the risk of unauthorized or incorrect journals getting posted into general ledger.

Cause: The City didn’t have control in place to ensure all journal entries are properly reviewed before posting.

Effect:. Journal entries recorded in the City’s accounting system may be inaccurate, unapproved, or unsupported.

Recommendation: We recommend that the City limit the number of employees who can post journal entries in the subledger and general ledger, and implement system control to ensure all journal entries are reviewed before posting.

Management’s response:

City management concurs with the recommendation and will continue to work with our internal IT team as well as consultants, to explore how the Oracle ERP system’s workflows can be adjusted to include an approval process for posting adjusting entries, which are currently system generated and automatically posted. Approvals for manually generated journal entries were implemented during the prior year and continue to be in place.
10

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City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2023
Section II – Current Year Findings, continued
A. Financial Statement Audit Finding, continued
2023-002 Payroll Module Implementation (Significant Deficiency) Criteria: An effectively implemented payroll system should process the payroll accurately, and an effective internal control system over payroll requires timely and accurate payroll processing.

Condition: During the performance of the audit, we noted that – • The Oracle payroll module has overtime configuration implemented incorrectly, and the City has to manually track the payroll in a spreadsheet and correct the error as it occurs since the implementation.
• The configuration of payroll journal entries posting was implemented incorrectly which caused the variance between the bank record and the City’s general ledger.

Cause: The Oracle payroll module has not been implemented correctly.

Effect: Errors and fraud can go undetected in payroll processing with a large volume of manual corrections needed.

Recommendation: We recommend the City to work with the third-party vendor to correct the implementation of payroll module.

Management’s Response:

City Management concurs with the finding and the City has recently entered into a contract with a consultant to assist with the reconfiguration of the payroll module to correct the overtime calculations and has completed substantial progress in identifying and testing solutions. This work is expected to resolve the issue upon completion and will eliminate the current practice involving manual correction of overtime rates. It is anticipated that this reconfiguration work will be complete during the 2023-24 fiscal year. 11

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City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2023
Section II – Current Year Findings, continued
A. Federal Award Program Audit Finding
No findings or questioned costs were noted in the current year. 12

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City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2023
Section III – Prior Year Findings
A. Financial Statement Audit Finding
2022-001 Journal Entries Posting (Material Weakness)
Criteria: The access to post journal entries in the general ledger should be restricted. Journal entries should be independently prepared, reviewed before being posted to the general ledger.

Cause: The City didn’t have control in place to ensure all journal entries are properly reviewed before posting.

Effect:. Journal entries recorded in the City’s accounting system may be inaccurate, unapproved, or unsupported.

Status: Not implemented. See current year finding 2023-001. 13

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City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2023
Section III – Prior Year Findings, continued
A. Financial Statement Audit Finding, continued
2022-002 Notes and Loans Receivable Tracking (Material Weakness) Criteria: The City is responsible for fair presentation of the financial statements in conformity with accounting principles generally accepted in the United States of America.

Condition: In fy2022, the City posted material prior period adjustments (over $3M) to record affordable housing loans, which were funded through City’s funds and CDBG. The loans were omitted from the prior years financial statements by error.

Cause: The loans were omitted due to miscommunication, or lack of communication between city departments that left the Finance Department unaware of the existence of the loans.

Effect: The financial statements were materially misstated.

Recommendation: We recommend the City to improve communication between Finance Department and other departments to ensure all financial transactions are captured properly.

Status: None noted in current fiscal year
14

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City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2023
Section III – Prior Year Findings, continued
A. Financial Statement Audit Finding, continued
2022-003 Year-End Close and Audit Preparedness (Significant Deficiency) Criteria: The City is responsible for fair presentation of the financial statements in conformity with accounting principles generally accepted in the United States of America. In addition, the City is responsible for the accuracy and completeness of all information provided and maintaining adequate records for the audit.

Condition:
 We received some significant adjustments after being provided the final TB. We listed below some major post-closing entries we noted:
o Significant adjustments in recording loan receivables o ARPA revenue was not properly recorded as unearned
o Custodial funds were not tracked properly according to GASB 84 o To correct missing AP accruals
o To correct receivables balances
 The schedules initially provided for Receivables (AR, Notes Receivables, Tax Receivables) cannot be tied to GL and do not have description of what were included in the balances but a list of debit and credit transactions only.
 We had difficulties in our revenue test as the documents the City provided cannot be easily linked to our requests or missing information that we requested, most of which is because there is no easily reconcilable documentation from the amounts that post to the general ledger to the original revenues.

Cause: The City’s closing process was not comprehensive enough to identify timely all the journal entries and adjustments needed to ensure the accuracy of the various account balances. Also, some information and documents provided to the auditor were either inaccurate or incomplete.

Effect: The City’s accounting records needed significant adjustments after the closing of the books and during the audit. Also, the inaccurate and incomplete information provided to the auditor caused delays in the audit and added more complexity to the audit.

Recommendation: We recommend that the City update its closing process to ensure all transactions and adjustments are accounted for timely before the audit starts, and have the information and documents reviewed before submitting to the auditors
Status: Implemented
15

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City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2023
Section III – Prior Year Findings, continued
A. Financial Statement Audit Finding, continued
2022-004 Payroll Module Implementation (Significant Deficiency) Criteria: An effectively implemented payroll system should process the payroll accurately, and an effective internal control system over payroll requires timely and accurate payroll processing.

Cause: The Oracle payroll module has not been implemented correctly.

Effect: Errors and fraud can go undetected in payroll processing with a large volume of manual corrections needed.

Recommendation: We recommend the City to work with the third-party vendor to correct the implementation of payroll module.

Status: Not Implemented. See current year finding 2023-002 16

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City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2023
Section III - Prior Year Findings, continued
A. Federal Award Audit Finding
No findings or questioned costs were noted in the prior year. 17

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City of San Luis Obispo
Transportation
Development Act Funds
Financial Statements
Years Ended
June 30, 2023 and 2022

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City of San Luis Obispo,
California
Transportation Development Act Funds
Financial Statements
Years Ended June 30, 2023 and 2022

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City of San Luis Obispo,
California Transportation
Development Act Funds
Report and Financial
Statements
Year Ended June 30, 2023 and 2022
Table of Contents
Page
Independent Auditor’s Report .................................................................................................................................................. 1 Balance Sheets – June 30, 2023 and 2022 ................................................................................................................................ 5 Statements of Revenues, Expenditures and Changes in Fund Balance – Years Ended June 30, 2023 and 2022 ...................................................................................................................................... 6 Statements of Fund Net Position – June 30, 2023 and 2022 ................................................................................................... 7 Statements of Revenues, Expenses and Changes in Fund Net Position – Years Ended June 30, 2023 and 2022 ...................................................................................................................................... 8 Statements of Cash Flows – Years Ended June 30, 2023 and 2022 ......................................................................................... 9 Notes to Financial Statements ............................................................................................................................................... 11 TDA Fund Supplementary Information
Schedule of Revenues and Expenditures – Budget and Actual – Years Ended June 30, 2023 and 2022 .................................................................................................................................... 20 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in accordance with Government Auditing Standards ..................................................... 21 Independent Auditor’s Report on Transportation Development Act Compliance ................................................................. 23

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INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of San Luis Obispo
San Luis Obispo, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the Transportation Development Act (TDA) Fund and the Transit Fund of the City of San Luis Obispo, California, as of and for the year ended June 30, 2023 and 2022, and the related notes to the financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the TDA Fund and the Transit Fund, as of June 30, 2023 and 2022, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the TDA fund and the Transit Fund’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

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To the Honorable Mayor and Members of the City Council
of the City of San Luis Obispo
San Luis Obispo, California

Page 2 ends

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the TDA fund and the Transit Fund’s internal control.

Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the TDA fund and the Transit Fund’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control– related matters that we identified during the audit.

Emphasis of Matter
As discussed in Note 1, the financial statements present only the TDA Fund and the Transit Fund and do not purport to, and do not, present fairly the financial position of the City, as of June 30, 2023 and 2022, and the changes in its financial position or where applicable, its cash flows for the years ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
2

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To the Honorable Mayor and Members of the City Council
of the City of San Luis Obispo
San Luis Obispo, California

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Required Supplementary Information
Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by this missing information.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Transportation Development Act (TDA) Fund and the Transit Fund’s financial statements. The budgetary comparison schedule is presented for purposes of additional analysis and is not a required part of the financial statements.

The budgetary comparison schedule on page 21 is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the budgetary comparison schedule is fairly stated in all material respects in relation to the financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 15, 2023 on our consideration of the TDA fund and the Transit Fund’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the TDA fund and the Transit Fund’s internal control over financial reporting and compliance.

Badawi and Associates, CPAs
Berkeley, California
December 15, 2023
3

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4

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2023 2022
Assets
Cash and investments $ 8,681 8,681 $
Total assets $ 8,681 8,681 $
Liabilities and Fund Balance
Liabilities
Unearned revenue $ - - $
Total liabilities - -
Fund balances:

Unassigned 8,681 8,681
Total liabilities and fund balance $ 8,681 $ 8,681
City of San Luis Obispo, California
Transportation Development Act (TDA) Fund
Balance Sheets
June 30, 2023 and 2022
The accompanying notes are an integral part of these financial statements. 5

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2023 2022
Revenues - intergovernmental allocations $ 76,869 $ 53,681 Other financing uses - operating transfers to City of San Luis Obispo (76,869) (45,000) Excess of revenues over other financing uses - 8,681
Fund balance - beginning of year 8,681 -
Fund balance - end of year $ 8,681 $ 8,681
City of San Luis Obispo, California
Transportation Development Act (TDA) Fund
Statements of Revenues, Expenditures and Changes in Fund Balance June 30, 2023 and 2022
The accompanying notes are an integral part of these financial statements. 6

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2023 2022
Assets
Current assets:

Cash and investment $ 5,747,671 7,980,433 $
Accounts receivable 1,465,809 90
Interest receivable 26,996 10,631
Due from other governments 683,027 1,877,213
Total current assets 10,156,265 7,635,605
Capital assets:

Infrastructure 110,972 110,972
Buildings and improvements 5,212,278 5,212,278
Transit operating equipment 9,006,717 9,021,099
Construction in progress 2,408,227 83,058
Total capital assets 16,738,194 14,427,407
Less accumulated depreciation (10,373,759) (9,928,541)
Total capital assets, net of accumulated depreciation 6,364,435 4,498,866 Total assets 16,520,700 12,134,471
Deferred Outflows of Resources
Pension related 223,664 145,137
Other post‐employment benefits related 25,046 18,309
Total deferred outflows of resources 248,710 163,446
Liabilities
Current liabilities:

Accounts payable 915,768 470,446
Accrued salaries and compensated absences 31,477 20,512 Unearned revenues 7,009,295 4,301,164
Total current liabilities 7,956,540 4,792,122
Noncurrent liabilities:

Compensated absences, net of current portion 5,630 7,029 Net pension liability 771,572 555,660
Net other post‐employment benefits liability 43,984 30,808 Total noncurrent liabilities 821,186 593,497
Total liabilities 8,777,726 5,385,619
Deferred Inflows of Resources
Pension related 2,280 142,711
Other post‐employment benefits related 10,643 23,824
Total deferred inflows of resources 12,923 166,535
Net Position
Net investment in capital assets 6,364,435 4,498,866
Restricted 1,614,326 2,246,897
Total net position $ 7,978,761 $ 6,745,763
City of San Luis Obispo, California
Transit Fund
Statements of Fund Net Position
June 30, 2023 and 2022
The accompanying notes are an integral part of these financial statements. 7

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2023 2022
Operating revenues:

Passenger fares $ 206,521 $ 172,957
Special transit fares 600,000 537,500
Other revenue 3,448 3,320
Total operating revenues 809,969 713,777
Operating expenses:

Purchased transportation 2,387,952 2,076,933
Other transportation services 702,098 596,413
Fuel and lubricants 365,359 340,952
Other materials and supplies 12,691 5,638
Salaries and wages 142,243 186,668
Fringe benefits 47,276 42,614
General and administrative 365,544 226,183
Depreciation 459,600 375,863
Total operating expenses 4,482,763 3,851,264
Operating loss (3,672,794) (3,137,487)
Nonoperating revenues:

Transportation Development Act operating grants 714,539 1,324,557 Federal Transit Administration operating grants 2,743,473 1,877,213 Federal Transit Administration capital and planning grants 1,339,692 - SGR 8,722 8,468
Interest 99,366 (134,748)
Total nonoperating revenues 4,905,792 3,075,490
Change in net position 1,232,998 (61,997)
Net position - beginning of year 6,745,763 6,807,760
Net position - beginning of year, as restated 6,745,763 6,807,760 Net position - end of year $ 7,978,761 $ 6,745,763
City of San Luis Obispo, California
Transit Fund
Statements of Revenues, Expenses and Changes in Net Position Years Ended June 30, 2023 and 2022
The accompanying notes are an integral part of these financial statements. 8

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2023 2022
Cash flows from operating activities:

Cash received from customers 3,246,567 $ 2,710,830 $
Cash payments to suppliers for goods and services (3,022,778) (3,000,375) Cash payments to General Fund for interfund services (365,544) (226,183) Cash payments to employees for services (189,741) (339,057) Net cash used in operating activities (331,496) (854,785) Cash flows from noncapital financing activities:

Operating grants received 3,210,238 4,806,426
Net cash provided by noncapital financing activities 4,806,426 3,210,238 Cash flows from capital and related financing activities:

Acquisition and construction of capital assets (2,325,169) (80,878) Net cash used in capital and related financing activities (2,325,169) (80,878) Cash flows from investing activities:

Interest on investments 83,001 (136,978)
Net cash provided by (used in) investing activities 83,001 (136,978) Net increase (decrease) in cash and cash equivalents and investments 2,232,762 2,137,597 Cash and cash equivalents and investments - beginning of year 5,747,671 3,610,074 Cash and cash equivalents and investments - end of year $ 7,980,433 $ 5,747,671 City of San Luis Obispo, California
Transit Fund
Statements of Cash Flows
Years Ended June 30, 2023 and 2022
The accompanying notes are an integral part of these financial statements. 9

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2023 2022
Reconciliation of operating loss to net cash used in operating activities:

Operating loss $ (3,137,487) (3,672,794) $
Adjustments to reconcile operating loss to net cash used in operating activities:

Depreciation 459,600 375,863
Changes in operating assets, deferred outflows, liabilities, and deferred inflows:

Accounts receivable (271,533) 931,620
Accounts payable 445,322 19,561
Unearned revenue 2,708,131 1,065,433
Accrued salaries and compensated absences 9,566 (1,095) Pension related deferred outflows and inflows and net pension liability (99,208) (3,046) OPEB related deferred outflows and inflows and net OPEB liability (9,472) (6,742) Net cash used in operating activities $ (854,785) (331,496) $ Reconciliation of cash and cash equivalents and investments to the statement of fund net position:

Cash and investment $ 5,747,671 7,980,433 $
Total cash and cash equivalents and investments $ 5,747,671 7,980,433 $ Non cash transactions
Gain (loss) on sale of capital assets $ - $ -
Statements of Cash Flows, Continued
Years Ended June 30, 2022 and 2021
City of San Luis Obispo, California
Transit Fund
The accompanying notes are an integral part of these financial statements. 10

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City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2023 and 2022
Note 1 - The Reporting Entity
The City of San Luis Obispo (the City) operates a fixed route public transportation system within the City limits and to the California Polytechnic State University (Cal Poly). Vehicle operations and vehicle maintenance are provided under contract by a private transportation company. Nonvehicle-related support and administrative services are provided by City staff.

The Transportation Development Act (TDA) Fund (the Fund) of the City of San Luis Obispo, California (the City) is a special revenue fund created by resolution of the City Council to account for the revenues received pursuant to the TDA. Such revenues allocated under specific state statutes are legally restricted to financial expenditures made of the development and construction of local streets and roads, including pedestrian and bicycle facilities.

The Transit Fund is an enterprise fund of the City created by resolution of the City Council to account for the revenues received pursuant to the Transportation Development Act (TDA), Federal Transit Authority (FTA) and the revenues received from the transit operations described above. Such revenues are allocated under specific statutes and are legally restricted to finance expenditures made for transit operations, the development of public transportation systems and transportation planning. When both restricted and unrestricted resources are available for the same purpose, it is the City’s policy to use restricted funds first.

Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Measurement Focus, Basis of Accounting and Basis of Presentation The Transportation Development Act (TDA) Fund’s financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when measurable and available.

Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay the liabilities of the current period. For this purpose, the City considers interest and grant revenues earned but not received as susceptible to accrual under this method. Expenditures are generally recognized at the time liabilities are incurred.

The Transit Fund’s financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when incurred regardless of the timing of related cash flows. The Fund distinguishes operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services in connection with the Fund’s principal ongoing operations. The principal operating revenues of the Fund are charges to customers for transit services. Operating expenses for the Fund include cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses, including non-exchange transactions such as TDA and FTA grants.

Non-exchange transactions, in which the Transit Fund receives value without directly giving equal value in return, include grants.

Revenue from grants is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the fiscal year when the resources are to be used or the fiscal year when use is first permitted; matching requirements, in which the Transit Fund must provide local resources to be used for a specific purpose; and expenditures requirements, in which the resources are provided to the Transit Fund on a reimbursement basis.

Annual Financial Statements
The financial statements of the Transportation Development Act (TDA) Fund and the Transit Fund are intended to reflect the financial position; results of operations and cash flows where applicable in conformity with generally accepted accounting principles and are not intended to present the financial position, results of operations, or cash flows of the City of San Luis Obispo, California.
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City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2023 and 2022

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Note 2 - Summary of Significant Accounting Policies, Continued Measurement Focus, Basis of Accounting and Basis of Presentation Special Revenue Fund – Transportation Development Act Fund This fund is used to account for the City’s share of Transportation Development Act (TDA) Article 3 funds that are legally restricted for the improvement and maintenance of street systems including pedestrian and bicycle facilities. Under the City's Financial Plan policies, all TDA Article 3 revenues are allocated for alternative transportation purposes. The purpose of this fund is to account for these revenues.

Enterprise Fund - Transit
This fund is used to account for the operation and maintenance of the City’s transit system. TDA Article 4 and FTA allocations for transit operations are accounted for in this fund.

Cash, Cash Equivalents, and Investments
Cash and cash equivalents consist of cash on hand, cash balances in checking and money market accounts and short- term investments, with an original maturity of three months or less. Investments which are in the City’s internal investment pool are also treated as cash equivalents for the purposes of the statement of cash flows.

Amounts Due from Other Governments
Generally, amounts due from other governments are recorded as revenues when earned. However, when the use of funds is the prime factor for determining eligibility for grants, revenue is accrued when the related expenses have been made on an approved grant.

Capital Assets
Capital assets are recorded at cost and depreciated using the straight-line method over their estimated useful lives, ranging from 5 to 20 years. Capital assets are defined by the City as assets with an initial, individual cost of more than $25,000. Detailed capital assets can be found in Note 5.

Net Pension Liability, Deferred Outflows and Deferred Inflows The City recognizes a net pension liability, which represents the City’s excess of the total pension liability over the fiduciary net position of the pension reflected in the actuarial reports provided by the California Public Employees’ Retirement System (CalPERS) plans (Plans). The City has allocated a proportionate share of the net pension liability, deferred outflows, deferred inflows and pension expense to the Transit Fund. The net pension liability is measured as of the City’s prior fiscal year-end.

Changes in the net pension liability are recorded, in the period incurred, as pension expense or as deferred inflows of resources or deferred outflows of resources depending on the nature of the change. The changes in the net pension liability that are recorded as deferred inflows of resources or deferred outflows of resources (that arise from changes in actuarial assumptions or other inputs and differences between expected or actual experience) are amortized over the weighted average remaining service life of all participants in the respective pension plan and are recorded as a component of pension expense beginning with the period in which they are incurred.

For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s CalPERS Plans and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Projected earnings on pension investments are recognized as a component of pension expense.
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City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2023 and 2022

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Note 2 - Summary of Significant Accounting Policies, Continued Other Post-Employment Benefits (OPEB) Liability, Deferred Outflows and Deferred Inflows For purposes of measuring net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan), and additions to or deductions from the OPEB Plan’s fiduciary net position, have been determined on the same basis as they are reported by the California Employer’s Retiree Benefit Trust Program (CERBT). For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with benefit terms. Investments are reported at fair value.

Generally accepted accounting principles require that the reported OPEB results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date June 30, 2021
Measurement Dates June 30, 2022 and 2021
Measurement Periods July 1, 2021 to June 30, 2022,
and July 1, 2020 to June 30, 2021
Fund Balance
The TDA Fund’s financial statements report fund balance in classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purpose for which amounts in the funds can be spent. The Fund does not have a fund balance in the current fiscal year, therefore classification is not necessary. However, GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, identifies five components of fund balance – nonspendable, restricted, committed, assigned and unassigned.

Nonspendable - This component includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.

Restricted - This component consists of amounts that have constraints placed on them either externally by third-parties (creditors, grantors, contributors, or laws or regulations of other governments) or by law through constitutional provisions or enabling legislation. Enabling legislation authorizes the City to assess, levy, charge or otherwise mandate payment of resources (from external resource providers) and includes legally enforceable requirements (compelled by external parties) that those resources be used only for the specific purposes stipulated in the legislation.

Committed - This component consists of amounts that can only be used for specific purposes pursuant to constraints imposed by minute order authorized by the City Council. Also included in this component are encumbrances which represent legal and binding obligations for the acquisition of future goods and services. Those committed amounts established by minute order cannot be used for any other purpose unless the City Council adopts a new minute order so directing. With respect to encumbered amounts, the City may take steps to cancel the order for goods or services and thereby terminate the obligation.

Assigned - This component consists of amounts that are constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed. The City Manager or Director of Finance are authorized to assign amounts to a specific purpose.

Constraints imposed on the use of assigned amounts can be removed with no formal Council actions.

Unassigned - This classification represents amounts that have not been restricted, committed, or assigned to specific purposes. 13

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City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2023 and 2022

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Note 2 - Summary of Significant Accounting Policies, Continued Fund Balance Spending Policy
The City follows a practice in which restricted, committed, assigned, and unassigned fund balances are spent when more than one amount is available for a specific purpose. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources (committed, assigned and unassigned) as they are needed. When unrestricted resources (committed, assigned and unassigned) are available for use, it is the City’s policy to use committed resources first, then assigned, and then unassigned as they are needed.

Budgets and Budgetary Accounting
The City has received national recognition for its use of a two-year Financial Plan and budgetary process that emphasizes longrange planning and effective program management. Significant features of the City’s two-year Financial Plan include the integration of Council goal-setting into the budgetary process and the extensive use of formal policies and measurable objectives.

The Financial Plan includes operating budgets for two years and a capital improvement plan (CIP) for five years.

Under this multi-year approach, appropriations continue to be made annually; however, the Financial Plan is the foundation for preparing the budget for the second year. Additionally, unexpended operating appropriations from the first year may be carried over for specific purposes into the second year with the approval of the City Manager.

Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures.

Accordingly, actual results could differ from those estimates.

Note 3 - CASH AND CASH EQUIVALENTS AND INVESTMENTS
Transportation Act Development (TDA) Fund and Transit Fund are pooled with the City’s cash and investments in order to generate optimum interest income. The City pools its available cash for investment purposes. Cash and cash equivalents are combined with investments and displayed as Cash and Investments.

At June 30, 2023 and 2022, cash and investments consisted of the following:

Investment Fair Value Measurements
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. Investment securities classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. Investment securities classified in Level 2 of the fair value hierarchy are valued using matrix pricing or market corroborated pricing. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. 2023 2022
Cash and investment $ 7,989,114 $ 5,756,352
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City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2023 and 2022

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Note 3 - Cash and Cash Equivalents and Investments, Continued Custodial Credit Risk – Deposits
Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. Cash balances held in banks are insured up to $250,000 by the Federal Depository Insurance Corporation. For custodial credit risk associated with deposits, the City follows California Government Code, which requires California financial institutions to secure the City’s deposits by pledging government securities as collateral. The market value of the pledged securities must equal 110% of the City’s deposits. California law also allows financial institutions to secure the City’s deposits by pledging first trust deed mortgage notes equal to 150% of the City’s deposits. All deposits held by financial institutions are fully insured or collateralized with securities, held by the pledging financial institutions’ trust departments in the City’s name.

The City follows the practice of pooling cash and investments for all funds under its direct daily control. Funds held by outside fiscal agents under provisions of bond indentures are maintained separately.

Interest earned on pooled cash and investments is allocated quarterly to the various funds based on the respective fund’s average quarterly cash balance. Interest earned from cash and investments with fiscal agents is credited directly to such funds.

Interest Rate Risk
This is the risk that the market value of securities in the portfolio will fall due to changes in general interest rates. In accordance with its policies in the Investment Management Plan, the City mitigates interest rate risk by:
 Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market before maturity.  Investing operating funds primarily in shorter-term securities.

The City’s investment policy also includes portfolio maturity targets. A minimum of 20% of the portfolio will be invested in securities maturing in one year or less. Up to 80% of the portfolio can be invested in securities with a maturity over one year, with no more than 10% of the portfolio invested in securities with a maturity over five years.

Credit Risk
This is the risk of loss due to the failure of the security issuer or backer. The City’s policies to mitigate credit risk include:
 Limiting investments to the safest types of securities. The California Government Code limits the investment vehicles available to local agencies. The credit risk of these securities is measured by the assignment of a rating by a nationally recognized statistical rating organization.
 Pre-qualifying the financial institutions, broker/dealers, intermediaries and advisors with which the City will do business.

Concentration of Credit Risk
The City’s policies contained in the Investment Management Plan provide guidelines (by type of investment that limits either the dollar amount, the percent of the portfolio or the maturity term) for diversifying the investment portfolio so that potential losses on individual securities will be minimized.
15

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City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2023 and 2022

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Note 3 - Cash and Cash Equivalents and Investments, Continued Concentration of Credit Risk, Continued
The City’s Investment Management Plan outlines the following criteria related to portfolio diversification:
 No more than 5% of the City’s portfolio (exclusive of government agency issues or LAIF) shall be placed with any financial institution.
 No more than 25% of the City’s portfolio shall be invested in collateralized certificates of deposit issued by financial institutions.
 Certificates of deposit (negotiable and collateralized) placed by the City shall not constitute more than 15% of the total assets of the institution; and negotiable certificates of deposit will only be placed with institutions with total assets in excess of $200 million and that maintain a ratio of equity to total assets of at least 5%.

Additional Cash and Investment Disclosures
See the City of San Luis Obispo June 30, 2023 and 2022 Annual Comprehensive Financial Reports for additional cash and investment disclosures.

Note 4 - DUE FROM OTHER GOVERNMENTS
At June 30, 2023 and 2022, the amounts due from other governments were as follows:

Note 5 - CAPITAL ASSETS
Capital Assets activity for the fiscal year ended June 30, 2023, was as follows:
2023 2022
Federal Transit Administration - capital and
operating grants $ 683,027 $ 1,877,213
Balance Deletions/ Balance
June 30, 2022 Additions Transfers/Adjustment June 30, 2023 Capital assets not being depreciated:

Construction in progress $ 83,058 $ 2,325,169 $ 2,408,227 - $ Capital assets being depreciated:

Infrastructure 110,972 - 110,972 -
Buildings and improvements 5,212,278 - 5,212,278 -
Transit operating equipment 9,021,099 - (14,382) 9,006,717 Total capital assets being depreciated 14,344,349 - (14,382) 14,329,967 Less accumulated depreciation (9,928,541) (385,400) (59,818) (10,373,759) Total capital assets, net of accumulated depreciation 4,498,866 $ $ 1,939,769 $ (74,200) $ 6,364,435 16

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City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2023 and 2022

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Note 5 - Capital Assets, Continued
Capital Assets activity for the fiscal year ended June 30, 2022, was as follows:

Note 6 - INTERGOVERNMENTAL ALLOCATIONS
The City has been allocated the following funds from the State Transit Assistance Fund (STAF), Local Transportation Fund (LTF) and State of Good Repair (SGR) for the years ended June 30, 2023 and 2022. The amounts have been and will be used for both operating expenses and capital assets.

For the years ended June 30, 2023 and 2022, the City also directly allocated $1,068,248, and $483,071, respectively, of LTF Article 4.0, Section 99260 funds to San Luis Obispo Regional Transit Authority (SLORTA). These funds are not shown in the accompanying financial statements.

In addition to TDA allocations, the City was also received a Low-Carbon Transit Operations Program (LCTOP) allocation of $344,183 to be spent toward the purchase of two electric transit vehicles. As of June 30, 2023, the City had purchased the vehicles.

Balance Deletions/ Balance
June 30, 2021 Additions Transters June 30, 2022
Capital assets not being depreciated:

Construction in progress $ 2,182 $ 83,058 $ (2,182) $ 83,058 Capital assets being depreciated:

Infrastructure 221,743 (110,771) - 110,972
Buildings and improvements 5,101,506 110,772 - 5,212,278 Transit operating equipment 9,021,099 - 9,021,099 -
Total capital assets being depreciated 14,344,348 - 14,344,349 1 Less accumulated depreciation (9,552,679) (375,862) (9,928,541) - Total capital assets, net of accumulated depreciation 4,793,851 $ $ (292,804) $ (2,181) $ 4,498,866 Article Section 2023 2022
LTF 3.0 99233.3 $ 76,869 $ 53,681
LTF 4.0 99260 2,647,859 2,084,383
STAF 6.5 99313 361,527 257,229
STAF 6.5 99314 69,101 48,229
SGR 6.5 99314 8,722 8,468
$ 3,164,078 $ 2,451,990
Applicable
Allocating TDA Statute Amount
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City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2023 and 2022

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Note 7 - FARE REVENUE RATIOS
For the years ended June 30, 2023 and 2022 the City had fare revenue ratios of 159%, and 98%, respectively, computed as follows:

Due to the global pandemic, the California legislature passed AB 90 and AB 149. AB 90 prohibits the imposition of a penalty on an operator that does not maintain the required ratio of fare revenues to operating cost during the 2020–21, 2021–22, and 2022-23 fiscal years. AB 149 extends the penalty exemption through the fiscal year 2023-24 as well as authorizes transit operators to include federal grant funds as local funds for the purpose of computing fare revenue ratios.

TDA regulations require a minimum ratio of 20% for a municipality the size of the City. The City is in compliance with the applicable TDA regulations for the year ended June 30, 2023 and June 30, 2022.

Note 8 - PENSIONS
The City contributes to the California Public Employees’ Retirement System (CalPERS) for its employees and participates in an agent-multiple employer plan (Miscellaneous Plan) for its miscellaneous employees. The City has allocated a portion of the Miscellaneous Plan that relates to the Transit Fund. The portion of the net pension liability allocated to the Transit Fund for the years ended June 30, 2023 and 2022 were $771,572 and $555,660, respectively. The portion of the deferred outflows of resources allocated to the Transit Fund for the years ended June 30, 2023 and 2022 were $223,664 and $145,137, respectively. The portion of the deferred inflows of resources allocated to the Transit Fund for the years ended June 30, 2023 and 2022 were $2,280 and $142,711, respectively. The portion of the pension expense allocated to the Transit Fund for the years ended June 30, 2023 and 2022 were $(3,046) and $(99,209), respectively, and is shown as a part of total fringe benefits in the related fiscal year.

Additional Pension Disclosures
See the City of San Luis Obispo June 30, 2023 and 2022 Annual Comprehensive Financial Reports for additional pension disclosures as well as required supplementary information.

Note 9 - OTHER POST-EMPLOYMENT BENEFITS (OPEB)
The City’s primary other post-employment benefits (OPEB) cost obligation is for retiree health benefits under its election to participate in the CalPERS Health Benefit Program, an agent multiple-employer defined benefit OPEB plan, under the “unequal contribution option.” The City has allocated a portion of the plan that relates to the Transit Fund. The portion of the net OPEB liability allocated to the Transit Fund for the years ended June 30, 2023 and 2022 were $43,984 and $30,808, respectively. The portion of the deferred outflows of resources allocated to the Transit Fund for the years ended June 30, 2023 and 2022 were $25,046 and $18,309, respectively. The portion of the deferred inflows of resources allocated to the Transit Fund for the years ended June 30, 2023 and 2022 were $10,643 and $23,824, respectively. The portion of the OPEB expense allocated to the Transit Fund for the years ended June 30, 2023 and 2022 were $(3,413) and $(6,248), respectively, and is shown as a part of total fringe benefits in the related fiscal year.
2023 2022
Operating revenues - fares $ 806,521 $ 710,457
Other local support - federal grants 4,083,165 1,877,213 (a) Net Operating revenues 4,889,686 2,587,670
(b) Net operating costs, net of depreciation and vehicle lease costs $ 4,023,165 $ 3,475,401 Exclude capital expenses under uniform system of accounts for purposes of calculating fare revenue ratios but
treated as operating expenses for financial statements (955,181) (830,773) (b) Adjusted operating costs for purposes of calculating fare revenue ratios $ 3,067,984 $ 2,644,628 (c) Fare revenue ratio [(a) / (b)] 159% 98%
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City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2023 and 2022

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Note 9 - Other Post-Employment Benefits (OPEB), Continued Additional OPEB Disclosures
See the City of San Luis Obispo June 30, 2023 and 2022 Annual Comprehensive Financial Reports for additional OPEB disclosures as well as required supplementary information.

Operating Transfers
The City expends all amounts for alternate transportation projects in its General Fund or Capital Outlay Fund. LTF monies received by the City are initially deposited in the Transportation Development Act (TDA) Fund and subsequently transferred to the General Fund, where such funds are expended or transferred to the Capital Outlay Fund to be expended on designated transportation projects.

Note 10 - COMMITMENTS AND CONTINGENCIES
Regional Transit Authority Pension Expense
The City is presently a member agency of the San Luis Obispo Regional Transit Authority (see ACFR Note 10), a duly established Joint Powers Authority (JPA) comprised of all local cities and the County of San Luis Obispo. The City’s contractual contribution to that entity is approximately 18% of the total expense. The City was advised that the Regional Transit Authority was working with CalPERS to determine whether it is required to enroll certain previously unenrolled transit employees in the CalPERS pension system and whether the entity may be liable for obligations related to the failure to enroll those employees and make contributions on their behalf. On December 10, 2019 the County Board of Supervisors approved a contract for participation of the JPA in the San Luis Obispo County Pension Trust and the Employees Retirement Plan. The current amount of potential CalPERS unfunded liability for the JPA may reach as high as $4 million. It is not anticipated that the City’s annual payment to the JPA will increase to satisfy this unfunded liability.

Note 11 - SUBSEQUENT EVENTS
Events subsequent to June 30, 2023 have been evaluated through December 15, 2023, which is the date the financial statements were available to be issued. Management did not identify subsequent events that required disclosure. 19

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2023 Original Final Actal
Revenues - intergovernmental allocations 45,900$ 76,869$ 76,869$ $ - Other financing uses - operating transfers
to City of San Luis Obispo (45,000) (76,869) (76,869) - Excess of revenues over other financing uses 900$ -$ -$ $ - 2022 Original Final Actal
Revenues - intergovernmental allocations 45,900$ 45,900$ 53,681$ $ 7,781 Other financing uses - operating transfers
to City of San Luis Obispo (45,900) (97,129) (45,000) 52,129 Excess of revenues over other financing uses -$ (51,229) $ 8,681$ $ 59,910 Budget Variance with
Final Budget
Positive
City of San Luis Obispo, California
Transportation Development Act (TDA) Fund
Supplementary Information
Schedules of Revenues and Expenditures - Budget and Actual June 30, 2023 and 2022
Variance with
Final Budget
Positive
(Negative)
Budget
20

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REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE

AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED

IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
of the City of San Luis Obispo
San Luis Obispo, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Transportation Development Act (TDA) Fund and the Transit Fund (TDA Program) of the City of San Luis Obispo, California (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, and have issued our report thereon dated December 15, 2023.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control.

Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

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To the Honorable Mayor and Members of the City Council
of the City of San Luis Obispo
San Luis Obispo, California
Page Two
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the TDA Program’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Badawi and Associates, CPAs
Berkeley, California
December 15, 2023
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REPORT ON COMPLIANCE AND ON INTERNAL CONTROL

OVER COMPLIANCE FOR TRANSPORTATION DEVELOPMENT ACT FUNDS Independent Auditor’s Report
To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California
Report on Compliance
Opinions
We have audited the City of San Luis Obispo’s (City) compliance with the types of compliance requirements described in Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) and the allocation instructions and resolutions of the San Luis Obispo Council of Governments applicable to the City’s Transportation Development Act Article 3, 4 and 6.5 Program (TDA Program) for the years ended June 30, 2023 and 2022.

In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its TDA Program for the year ended June 30, 2023 and 2022.

Basis for Opinion
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and Section 6666 and 6667 of the rules and regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act); and the allocation instructions and resolutions of the San Luis Obispo Council of Governments. Our responsibilities under those standards and the Act are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the City’s TDA Program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

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To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California

Page 2 ends

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City’s TDA Program.

Auditors’ Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) and the allocation instructions and resolutions of the San Luis Obispo Council of Governments will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of the TDA Program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) and the allocation instructions and resolutions of the San Luis Obispo Council of Governments, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
 Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) and the allocation instructions and resolutions of the San Luis Obispo Council of Governments, but not for the purpose of expressing an opinion on the effectiveness of City’s internal control over compliance. Accordingly, no such opinion is expressed.
24

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To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California

Page 3 ends

Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of the Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) and the allocation instructions and resolutions of the San Luis Obispo Council of Governments on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of the Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) and the allocation instructions and resolutions of the San Luis Obispo Council of Governments will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of the Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) and the allocation instructions and resolutions of the San Luis Obispo Council of Governments that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined below. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. 25

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To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California

Page 4 ends

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act), and the allocation instructions and resolutions of the San Luis Obispo Council of Governments. Accordingly, this report is not suitable for any other purpose.

Badawi and Associates, CPAs
Berkeley, California
December 15, 2023
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City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: January 23, 2024
TO: Mayor and Council
FROM: Matt Horn, Public Works Director
Prepared By: Alex Fuchs, Mobility Services Business Manager VIA: Derek Johnson, City Manager
SUBJECT: ITEM 7A – TRANSIT INNOVATION STUDY REVIEW
Staff received the following questions, regarding the Study Session for the Transit Innovation Study review. The questions are below with staff’s response shown in italics:

1. Is there a reason the Transit Innovation Study does not focus on more frequent services to the SLO Airport?
The Transit Innovation Study report focuses on recommending service enhancements on specific routes (Routes 3 and 4) that are most likely to increase ridership. However, the report states that, “If any other routes or periods of time are determined to be moderate or high demand through the course of the City’s [Short Range Transit Plan] SRTP update, those routes and periods should also be considered for frequency improvements.” More frequent service to the airport was not identified as having a significant impact on ridership; however, more frequent service across all fixed routes will be investigated through the SRTP update process.

2. Does the City require the County to buy Downtown Access Passes to meet their average vehicle ridership requirements?
No, the County is not required to opt-in their employees into the Downtown Access Pass program. Downtown Access Passes are not sold to individuals since they are provided for free to verified employees of the downtown area.

3. Do we have an idea what progress has been made on achieving our mode shift goals? How often do we measure those numbers?
Progress on achieving mode split objectives will be calculated once the next transportation survey is conducted later this year. The most current data on mode share is from a City Transportation survey completed in 2019 (see the table below).

This data will be included in the 2023 Active Transportation Plan Report Card, which will be published in a few weeks. Typically, surveying would occur every two years; however, the 2021-22 surveying was skipped due to the pandemic.

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Item 7a. Transit Innovation Study Review Page 2
Mode Current Split1 Split Objectives2
Drive Alone 61% 50%
Walk, Carpool, and other Forms 20% 18%
Bus 2% 12%
Bike 16% 20%

4. Would a switch to an open loop payment system still allow for coin and paper payment at the point of getting on the bus?
Yes, cash payments will still be accepted. For many transit users, cash is their only payment option and SLO Transit is committed to serving all users in the community.

5. Will safe crossings to and from bus stops, especially along busy arterials, be evaluated for each of our most frequently used routes as part of the Transit Innovation Study?
No, safe crossings will not be evaluated specifically through the Transit Innovation Study since right-of-way (ROW) improvements around transit stops are coordinated as part of larger capital projects undertaken by the City. The City’s Transit, Active Transportation, and Transportation Engineering programs work closely to determine appropriate improvements, including crossing improvements, when planning ROW capital projects.

6. Enhanced service on fixed routes is labeled as high priority across all categories but is given a medium timeframe. Please explain some of the barriers to implementing this priority more expeditiously.

Changes to fixed route services requires extensive outreach and evaluation to determine impacts on the overall transit system, regional transfers, and effects on individual commuters needs. Additionally, new services, like adding express routes and more frequent service, require additional buses and drivers to operate. The Short-Range Transit Plan (SRTP) update, which is currently underway, will evaluate and make recommendations for specific enhanced fixed route services.

The SRTP revised schedule has a final draft report to be completed by December 2024.

1 2019 City Transportation Survey
2 2035 Mode Split Objectives per Land Use and Circulation Elements update in 2014

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Item 7a. Transit Innovation Study Review Page 3

7. Since Transit Innovation Study recommendation #7 (Fare Changes for Students, Seniors, Low-Income Riders) helps further the City’s Diversity, Equity, and Inclusion (DEI) goals, should it be given a higher priority? Council has the discretion to re-prioritize the recommendations as appropriate to meet community needs. Staff is soliciting input from Council and will request this information from Council as Study Session Feedback questions.

8. Does staff know why there is such low participation in the Downtown Access Pass Program?
Anecdotally, the program is not well marketed, it only applies to SLO Transit buses that serve riders within the City an many downtown employees live outside the City, and quarterly employment verification is cumbersome. Section 5.3 of the Transit Innovation Study report recommends policy changes to increase program participation. Staff has included the implementation of the recommended policy changes under the Immediate Opportunities for Action section of the agenda report.

The Mobility Services Division was approved for and is currently recruiting for a contract Communications Coordinator that will support the Transit program as well as Parking Services and Active Transportation. The position is anticipated to be filled in February 2024. The Communications Coordinator will be responsible for promotions of all Transit programs including the Downtown Access Pass program.

9. In the Mobility Hubs section of the Transit Innovation Study, there is mention of running some low-cost amenities as a pilot, do we have an idea of what amenities out of those mentioned might be eligible for this type of pilot? Low-cost items include co-locating bike facilities (bike racks), dedicated carshare parking spaces, and transit facilities within close proximity to one another as a pilot mobility hub effort.

10.What’s a realistic timeframe for implementation of a bike share in SLO? The City’s Major City Goal for Climate Action Plan work program identifies strategy

4.3.i which states:
i. Reassess the viability of launching a citywide bikeshare system, with ongoing coordination with Cal Poly as called for in CAP Connected Communities Task 2.2.A and the APMP strategy 1.B.1. Solicit potential bikeshare system operators if staffing resources allow and this can be done without diverting resources from delivering priority active transportation infrastructure projects.

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Item 7a. Transit Innovation Study Review Page 4
This work item is currently anticipated to be completed in the fourth quarter of 2025.

Question #20 below also relates to the implementation of a bikeshare program and a revision to the bikeshare language in the Transit Innovation Study report.

11.Community members have mentioned the use of a carshare or shuttle type service in Truckee that is subsidized by the city in an effort to keep cars out of downtown. Do we have any information on program like this and if it’s viable as a supplement to bus transit?
A carshare program was analyzed in the study and is listed as number 15 on the recommendation list. Detail of the program is found under section 7.4 – Implement Carshare Program of the report.

12.What entities are paying for the Open-Loop Payment System? San Luis Obispo Council of Governments (SLOCOG) has requested and been approved by their board to fund a region-wide coordination and implementation of an open-loop payment system which will include SLO Transit, San Luis Obispo Regional Transit Authority (RTA), and other transit providers in the county. The next step is for the allocation package submitted by SLOCOG to be reviewed by the issuing agency, California State Transportation Agency (CalSTA).

13.What costs and operational needs are related to the K-12 passes? Page 590- 591. How could we have a pilot program and not jeopardize funding, will school funding be required? If it will take significant staff time and outreach, then why is implementing fare changes labeled as minimal in the report? If parents are requesting the pass, then do we have a lot of people requesting it?
The costs to implement the pilot program for K-12 students is minimal. It requires staff to work with a third-party vendor to program the pass coder, mobile app, and the on-board fare validator to accept and track the new pass and fare types.

According to fiscal year 2023 ridership data, the existing 31-day student pass was used 5,400 times. This represents about 1% of recorded trips last year. It is unlikely that even significant participation in the pilot program will jeopardize SLO Transit’s 20% farebox recovery requirement.

The fare changes recommended in the Transit Innovation Study report can be implemented in a relatively short time frame and at a low cost when compared to the other recommendations. The pilot program is meant to be an interim solution and allow for actual data collection to better inform permanent changes to SLO Transit’s pass and fare rate structure.

A small, yet dedicated group of middle school parents have engaged the City in conversations about improvements to the transit system that would benefit K-12

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Item 7a. Transit Innovation Study Review Page 5
students. The conversations included expanding fare and pass options for students. Staff also met with Laguna Middle School staff and provided the proposed fare and pass rates as well as staff contact information for distribution.

As of the writing of the agenda report, no communication was received as a result of the meeting with school staff.

14.What community groups provided input during the Transit Innovation Study? What is the overall input from senior citizens and persons with disabilities on the study? Are there any changes related to senior citizens? Input from multiple individuals and representatives of community partner groups were solicited and received during the study process. Staff engaged and received input from Cal Poly, Downtown SLO, San Luis Obispo Chamber of Commerce, RTA, San Luis Obispo Council of Governments (SLOCOG), Mass Transportation Committee members, Active Transportation Committee members, Ride-On Transportation, Cal Poly’s Associated Students, Inc. (ASI), SLO Climate Coalition, YIMBY Action, and Diversity SLO.

Community groups that specifically advocate for senior citizens and persons with disabilities were not engaged; however, the community groups that were engaged interact with and provide services to both of these groups. The purpose of the Transit Innovation Study was to evaluate new technology and new service delivery modes that support the City’s transit network and help achieve its mode split objectives. Outreach was critical to the development of the study’s recommendations however it was not meant to supplement outreach conducted through established planning processes like the SRTP update or SLOCOG’s Unmet Transit Needs Study. Both of which are currently underway and involve significant outreach efforts to ensure a wide range of feedback is received.

15. When were the stakeholder feedback/information gathering sessions conducted for the Transit Innovation Study?
The consultants produced seven memos throughout the study process. The memos were provided to internal and external stakeholders via email for review and comment between May and August 2023. External stakeholders included Cal Poly, Downtown SLO, San Luis Obispo Chamber of Commerce, RTA, SLOCOG, Mass Transportation Committee members.

Staff also held a stakeholder workshop on September 25, 2023, to review the draft recommendations and to re-prioritize them based on the potential to increase ridership. The workshop was attended by representatives of the above groups as well as representatives from Ride-On Transportation, Cal Poly’s Associated Students, Inc. (ASI), SLO Climate Coalition, YIMBY Action, and Diversity SLO.

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16.When will Public Works staff be conducting the random survey of residents in order to gather travel and commute data for updating the mode-shift percentages? And isn’t that data collected and available through the American Community Survey, or we do collect our own data too? City transportation staff will conduct a survey of residents this year to collect travel pattern data. The City has used American Community Survey (ACS) data in the past but the data does not accurately reflect all travel patterns in the community as the ACS only asks for commute data related to work and school. The surveying done by staff asks for data on all travel patterns, not just for school or work.

17.I noted that the Senior 31 day passes are discounted from the regular price, as are the 15 day passes. However, with the new youth pricing, it doesn’t seem like we are likewise proposing to discount the 15-day pass for youth, only the 3-day passes. Any reason for that? (For instance, instead of $15/15- day pass, maybe they should be $12 or even $10…similar to the other pass pricing.)
The Senior/Disabled fare and passes are discounted at a 50% rate when compared to the regular fare and passes. For example, 15 rides at the 50% discounted fare rate of $0.75 per ride equates to $11.25 which is the cost of the 15-Ride Senior/Disabled pass. The proposed student pricing for the 15-Ride Student pass follows the same logic where 15 rides at the proposed discounted fare rate of $1.00 per ride equates to $15.00.

18.Was the Active Transportation Committee consulted on this study or included as part of the stakeholder group?
Yes, a representative from the Active Transportation Committee was invited to and attended the stakeholder workshop that took place on September 25, 2023.

19.Which advisory bodies will review the SRTP and the Transit Operation Plan? The SRTP and associated transit operations plan that will be developed as part of the SRTP update will be presented to and reviewed by the Mass Transportation Committee, Regional Transit Advisory Committee, and City Council.

20. Can you elaborate more on the existing bike share pilot with Cal Poly noted under section 7.3 – Implement Bikeshare Program of the Transit Innovation Study report (packet pages 643 and 644) which states, “Bikeshare has been of particular interest to the San Luis Obispo community for some time. As outlined in the City’s Active Transportation Plan, the City has already been engaged in a pilot bikeshare program in partnership with Cal Poly and is interested in expanding the program to a wider area. The City has been working to identify potential locations for future bikeshare stations in pursuit of this effort."

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This statement is inaccurate and will be updated in the final version of the Transit Innovation Study report to state, “"Bikeshare has been of particular interest to the San Luis Obispo community for some time. As outlined in the City’s Active Transportation Plan, the City is currently reassessing the viability of a bikeshare program in partnership with Cal Poly.” This language is consistent with the Active Transportation Plan and the Climate Action Plan workplan.

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Item 7a
Department: Public Works
Cost Center: 5201
For Agenda of: 1/23/2024
Placement: Study Session
Estimated Time: 90 Minutes
FROM: Matt Horn, Public Works Director
Prepared By: Alex Fuchs, Mobility Services Business Manager; Lucia Pohlman, Sustainability and Natural Resources Analyst SUBJECT: STUDY SESSION: TRANSIT INNOVATION STUDY REVIEW

RECOMMENDATION

1. Receive and file Transit Innovation Study; and

2. Provide any necessary direction to staff to finalize the report and begin implementation; and

3. As recommended by the Mass Transportation Committee, adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving a pilot program expanding fare options for K-12 students for San Luis Obispo (SLO) Transit.”

REPORT-IN-BRIEF
Note for the reader, this is largely the same report as was publicly distributed for the November 7, 2023, meeting. The report has been slightly revised to include the following elements: 1. Added, as an attachment, a draft Resolution (Attachment A) approving a pilot program to expand the fare and pass options for K-12 students with a discussion of the pilot program under the report heading "Opportunities for Immediate Action" section.

2. Added language regarding a recent grant opportunity through SLOCOG which allocated money to fund several Transit Innovation Study recommendations. The report has also been modified to incorporate questions raised by the Council prior to the hearing.

The City is committed to reducing climate emissions and to increasing the use of alternative transportation options. Transit plays an integral role in meeting both initiatives.

SLO Transit’s ridership was significantly impacted by COVID-19, as were most other transportation operators throughout the nation. This, however, has given SLO Transit a unique opportunity to incorporate new technologies and innovative service options to restore ridership and to further the City’s climate action and mode split objectives.

A Transit Innovation Study was conducted to explore and evaluate transit operational improvements. The findings of the study were compiled into a report, included with this report as Attachment B, and provides actionable recommendations to help meet the City’s climate and mode split objectives. The study’s recommendations are planned to be

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implemented with the 2024-25 Supplemental Budget and future budgets, the upcoming Short-Range Transit Plan update, and future updates to applicable planning documents.

POLICY CONTEXT
 General Plan Circulation Element Program 1.7.1 - San Luis Obispo should increase the use of alternative forms of transportation (as shown on Table 1)1 and depend less on the single‐occupant use of vehicles.
 Climate Action Plan Connected Community Goal 1 - Achieve General Plan Mode Split Objective by 20302.
 Climate Action Plan Connected Community Action 4.2.A - Incorporate recommendations from the Transit Innovation Study into the Short-Range Transit Plan and begin implementation immediately.
 2023-25 Financial Plan Major City Goal 5.3.k - 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.

DISCUSSION
Background
Introduction to the SLO Transit Innovation Study
The Transit Innovation Study presents the City of San Luis Obispo with a unique opportunity to reimagine SLO Transit. In 2014, the City set an ambitious mode split objective target for 12% of trips to occur by transit. In 2020, through the adoption of the Climate Action Plan, the City set a time-bound goal to accomplish its mode split objectives by 2035, while it simultaneously experienced a dramatic decline in transit ridership due to the COVID-19 pandemic. To restore ridership to pre-pandemic levels, SLO Transit needs to provide the community with approximately 500,000 additional passenger trips annually above what was provided last fiscal year. This commitment to increasing transit ridership necessitates moving beyond incremental change and investing in transformative solutions.

1 Table 1 – Modal Split Objectives – shows 12% of trips by transit by 2035. 2 General Plan Mode Split Objective of 7% of trips by transit by 2030.

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Figure 1 - SLO Transit Annual Ridership
Transportation is the largest source of the City’s climate emissions3, and transit is a key mechanism for reducing emissions. The City also recognizes that public transit is more than a climate solution – it is equally a housing, parking, equity, and inclusivity solution.

As the construction of new subdivisions nears completion, the City will increasingly rely on infill development to keep pace with housing demand. As new housing increases the density of existing neighborhoods, SLO Transit can help alleviate parking concerns while providing an affordable mobility option for a growing community of people who work, live, and play in San Luis Obispo.

This opportunity to bolster and improve SLO Transit is strengthened by the City’s recent staffing and organizational changes. San Luis Obispo’s new Mobility Services Division brings together Transit, Active Transportation, and Parking Services to allow greater coordination between all forms of mobility managed by the City. This internal reorganization reflects the fact that transit cannot succeed by itself. SLO Transit’s future success depends on complementary first and last-mile connections and innovative mobility services that give SLO community members the confidence to rely on transit as a dependable and go to means of transportation.

For this reason, the SLO Transit Innovation Study is a key element to help identify strategies for new multi-modal transportation and transformative solutions to increase transit ridership and reach the 12% transit mode split objectives. Public Works staff, as part of the bi-annual Active Transportation Plan update, plans to conduct a randomized survey of residents to gather travel and commute data that will allow for an update of the

3 2016 Greenhouse Gas (GHG) emissions inventory estimated that 63% of all emissions were from on-road transportation.

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City’s mode split percentages.

Objectives of the SLO Transit Innovation Study
The overall purpose of the Transit Innovation Study is to evaluate new technology and new delivery modes that will support the City’s current transit network and help the City achieve its established mode shift goals of 12% transit trips, 20% bicycle trips, and 18% of trips via walking, carpools, and other forms by 2035 for trips made by City residents.

The study presents actionable recommendations to improve fixed-route transit service, explore alternative service modes, and broadly enhance transit as a viable alternative to private automobile travel. The Transit Innovation Study recommends improvements for current transit operations to restore ridership while also taking steps to enhance transit's potential to achieve diversity, equity, and inclusion goals through affordable and dependable mobility options.

Development of these actionable recommendations was led by the external consultant, Arcadis (formerly IBI Group), in response to needs identified by internal and external key stakeholders and were subsequently vetted and prioritized in a staff-facilitated stakeholder workshop. Ultimately, the study’s recommendations will be pursued through the 2024-25 Supplemental Budget and future budgets, upcoming Short-Range Transit Plan update, and future updates to the Climate Action Plan, Active Transportation Plan, and other applicable plans.

Innovations Evaluated by the Study
The study evaluated a variety of technologies and innovations that SLO Transit could implement to reestablish ridership and to help meet the mode objectives. These technologies and innovations were categorized into five themes as shown in Figure 2 below. The themes helped to frame the discussion with the stakeholders and communicate overall prioritization as well as priorities for each theme.

Figure 2 - Transit Innovation Study Themes

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Theme One: Critical Upgrades that Support Ongoing Operations The first category includes “Critical Technology” upgrades that support ongoing operations such as replacing computer-aided dispatch and automated vehicle locater systems (CAD/AVL), upgrading automatic passenger counters, and replacing and improving camera systems on fixed-route vehicles. An updated AVL system will allow SLO Transit to reliably track and provide real-time bus location information to the community to build confidence when using or considering use of transit. Key stakeholders agreed these upgrades are necessary for successful ongoing transit operations.

Theme Two: Technologies that Improve Riders’ User Experience The second category, “User Experience,” includes technology advancements that improve riders’ user experience. These technologies consist of the enhancement of realtime passenger information4 , pursuing open-loop payments through California’s
Integrated Travel Project (Cal-ITP), and establishing a Mobility-as-a-Service platform5.

An open-loop payment system is a technology that enables riders to pay for transit fees via credit card or a transit card. This open-loop payment system reduces the “friction” in the payment process and ensures that SLO Transit is accessible to the next generation of transit users. Cash payments would still be accepted on-bus since many transit users lack access to bank cards and mobile devices. Internal and external stakeholders agree that an open-loop payment system is best pursued at a regional level, in coordination with the San Luis Obispo Regional Transit Authority (SLORTA), which will make it easier for low-income verified transit users to access reduced fares regardless of whether using regional or local bus routes.

Theme Three: Fare Program Updates to Increase Transit Opportunities The “Fare Programs” category incorporates fare program updates that increase transit accessibility. Ideas like expanding the downtown access program, expanding fare options for students, seniors, and low-income riders, and exploring institutional partnerships are included in this category. These fare program updates would enable SLO Transit to become more convenient and affordable to key community groups while also better connecting the City’s suburbs to the downtown core. Strategic partnerships with RTA, Cal Poly, school districts, hospitality businesses, and developers are also crucial to getting more riders. In all cases, fare program updates must be paired with robust communications and marketing efforts to ensure that residents and commuters are aware of the programs and how to participate.

Theme Four: Bus Shelter and Street Improvements for Rider Safety and Comfort The “Shelters and Streets” category covers physical improvements to the bus stops themselves such as improved lighting, improved shelters, and sufficient bike parking.

4 Real-Time Passenger Information Systems (RTPI) provide customers with information about the nature and status of transportation services. RTPI can include on-board next stop announcements and predictions for stop arrival times, bus stop dynamic message signs (DMS), and customer self-service tools. 5 Mobility-as-a-Service (MaaS) refers to the integration of various transportation services into a single, comprehensive, and on-demand mobility application. MaaS applications can host a diverse menu of transport options, including public transport options, ridesharing services, and active transportation options such as bikeshare, e-scooter share and walking directions.

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Access improvements around transit stops, like pedestrian crossings, will be addressed as part of larger right-of-way improvement efforts like those occurring now through the City’s SLO in Motion projects.

This category also touches on constructing mobility hubs to promote bus rider transfers to different mobility options at strategic stops and constructing bus bulb-outs at downtown stops to increase safety and reduce bus travel time. Low-cost amenities like bike racks, dedicated carshare spaces, and transit facilities can be co-located as a way for the City to pilot mobility hubs. Depending on adoption, higher-cost amenities can then be pursued and implemented later.

Contributors to the workshop agreed that creating a safe, comfortable, and secure environment was important to increasing ridership. Stakeholders emphasized the importance of using a standardized design language and creating an ongoing maintenance plan for this solution category.

Theme Five: Enhanced Service and Alternate Transit Options The “Enhanced Service” category focused on improvements to SLO Transit’s fixed route service as well as the addition of new mobility options that could be operated by SLO Transit or in coordination with third parties. This category includes service enhancements that decrease headways, launching car and bike share programs, and offering microtransit services. The City’s Climate Action Plan identifies bike share implementation as early as 2024 if such a program is determined to be feasible. Stakeholders who participated in the Transit Innovation Study process overwhelmingly agreed that enhanced service (i.e., running buses more often on popular fixed routes) is vital to increasing ridership.

With enhanced service often comes with increased operational, equipment, and supplies costs and there are typically trade-offs between a transit program’s fixed route geographic coverage and its headways. To overcome this challenge, the study recommends implementing enhanced service levels on certain routes and providing alternative mobility services such as on-demand micro-transit on other routes to offset those costs.

Transit Innovation Study Recommendations
The study’s recommendations summarized in Table 1 below are intended to enhance mobility, restore ridership, and improve technology. The top five recommendations, identified as High-Priority items, include enhancing fixed route services, pursuing an open-loop payment system, and technological upgrades (new CAD/AVL system, auto passenger counters, and real-time passenger information). Additional details about each topic and evaluative criteria are available in the final draft of the report included in Attachment B to this report.

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Table 1: SLO Transit Innovation Study Recommendations
# Recommendation Category Relevance
to SLO
Impact to
Ridership Timeframe Cost Priority
1 Enhanced Service on Fixed
Routes
Enhanced
Service High High Medium High HIGH
2 Pursue open-loop payments
through Cal-ITP
User
Experience High High Medium Medium HIGH
3 Replace CAD/AVL System on
Fixed-Route Vehicles
Critical
Tech High Low Short High HIGH
4 Upgrade Automatic Passenger
Counters on Fixed-Route
Vehicles
Critical
Tech High Low Short Medium HIGH
5 Enhance Real-Time Passenger
Information
User
Experience Medium High Short Medium HIGH
6 Replace and Improve Camera
Systems
Critical
Tech High Low Short Medium MEDIUM
7 Fare Changes for Students,
Seniors, Low-Income Riders
Fare
Programs High High Short Low MEDIUM
8 Explore Institutional Partnerships Fare
Programs Medium High Medium Low MEDIUM
9 Pursue Micro-Transit Mobility
Services
Enhanced
Service Medium High Long Medium MEDIUM
10 Expand Downtown Access
Program
Fare
Programs High Medium Short Low MEDIUM
11 Launch a Bikeshare Program Enhanced
Service Medium Low Short Low MEDIUM
12 Install Lighting, Shelters, and
Bike Parking at Applicable Bus
Stops
Shelter and
Streets Medium Medium Medium Medium MEDIUM
13 Establish a Mobility-as-a-Service
Platform
User
Experience Medium Medium Long High LOW
14 Investigate and Establish Mobility
Hubs
Shelter and
Streets Medium Medium Medium High LOW
15 Launch a Carshare Program Enhanced
Service Medium Low Medium Medium LOW
16 Implement a Transit Signal
Priority Strategy
Enhanced
Service Low Low Medium High LOW
17 Add Bus Bulb-outs Downtown Shelter and
Streets Medium Low Long Medium LOW
Implementing Transit Innovation Study Recommendations
Immediate Opportunities for Action
While most of the Transit Innovation Study recommendations can be integrated into the Short Range Transit Plan (SRTP) that is currently underway and expected to be complete

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in Spring 2025, there are opportunities for the following four actions that can be addressed administratively and immediately to boost ridership. These actions include:

1. Pursue open-loop payment system in coordination with RTA and with support from the California Integrated Travel Project (Cal-ITP).

On June 7, 2022, Council adopted Resolution No. 11330 (2022 Series) authorizing the Public Works Director to apply for future transit program funding opportunities and to execute related documents. In October 2023, SLOCOG released a call for projects for Transit and Intercity Rail Capital Program (TIRCP) and for ZeroEmission Transit Capital Program (ZETCP) grant funding. As part of the call for projects, SLOCOG submitted a request to fund a region-wide open-loop contactless payment system.

On December 6, 2023, SLOCOG’s board approved the allocation of $2.6 million in TIRCP funds for fiscal year 2024-25 to pursue region-wide coordination and implementation of an open-loop contactless payment system. The allocation package has been submitted to the issuing agency, California State Transportation Agency (CalSTA), for review. If the package is considered complete and projects are determined eligible for funding, then CalSTA will notify SLOCOG of the approval and disbursement.

SLO Transit staff will then work SLOCOG, RTA, other providers, and Cal-ITP to scope, procure, and implement the project. No changes to the Transit Fund will need to occur since SLOCOG is the agency through which the open-loop payment system project is funded.

2. Pursue grant funding opportunities for technological upgrades.

In November 2023, staff submitted projects to SLOCOG for funding through the TIRCP and ZETCP programs. On December 6, 2023, SLOCOG’s board approved the allocation of $880,000 in TIRCP funds for fiscal year 2024-25 for auto vehicle locator system6 and for on-bus security camera system upgrade projects. Same as the above project funding, the allocation package has been submitted to the issuing agency, CalSTA, for review.

If funding is approved by CalSTA, then staff will present to Council an updated Transit Fund forecast that includes revenue and associated capital project expenses for these projects. Staff is still estimating costs to upgrade both systems and may need to secure additional funding even if the TIRCP funding is awarded.

3. Expansion of fare options for K-12 students.

The Transit Innovation Study recommends expanding fare-free options for K-12 students beyond what is provided during summer months. Analyzing the potential

6Automated Vehicle Location (AVL) technology provides tools to track vehicle position at a predefined interval and provides tools to manage operations in real-time from a centralized or remote-control center.

AVL technology serves as a core component to many other transit technology applications that rely on vehicle location.

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impacts of such an expansion should be done in conjunction with the other fare expansion options recommended in the study and will take significant staff time and outreach since the cumulative effects of implementing discounted fare programs could jeopardize SLO Transit’s ability to maintain its required 20% minimum farebox recovery ratio7.

As an immediate solution to address the need for expanded student fare and pass options, staff recommends Council adopt a Draft Resolution (Attachment A) establishing a pilot program allowing SLO Transit to offer a discounted single-ride fare and a discounted 15-ride pass for K-12 students effective February 1, 2024, through June 5, 2025. During the 2022-23 fiscal year, trips using a 31-Day Student Pass represented about one percent of all SLO Transit trips. However, it is not known how many regular fares and pass trips are taken by K-12 students. If adopted, staff will monitor monthly statistics to track the effects of the new fare and pass options on ridership and revenue.

The recommendation is in line with correspondence received by the City from K12 parents requesting more student fare options beyond the discounted 31-day pass. Expanding discounted fare and pass options for K-12 students increases access to safe and affordable transportation. The new fare and pass rates may also provide minor financial relief to parents who cannot afford the 31-day Student pass currently offered by SLO Transit. It also exposes students to transit as a viable transportation alternative. Table 2 lists the current and proposed fare and pass type costs offered by SLO Transit.

Table 2: Proposed Expansion of SLO Transit Pass and Fare Options Fare Type Current Rate Proposed Rate
Regular $1.50 $1.50
Student (K-12) N/A $1.00
Senior/Disabled $0.75 $0.75
Pass Type Current Rate Proposed Rate
31-Day Regular $40.00 $40.00
31-Day Student (K-12) $25.00 $25.00
31-Day Senior/Disabled $20.00 $20.00
16-Ride Regular $24.00 $24.00
15-Ride Student (K-12) N/A $15.00
15-Ride Senior/Disabled $11.25 $11.25
7-Day $15.00 $15.00
5-Day $12.00 $12.00
3-Day $7.00 $7.00
1-Day $3.25 $3.25
Regional Day Pass $5.50 $5.50

7The farebox recovery ratio is the percentage of total operating expenses that are made up by passenger fares. The figure is calculated by dividing total passenger-fare revenue by total operating expenses. The Federal Transit Administration (FTA) requires transit agencies that operate in Urbanized Zones to meet a 20% minimum farebox recovery ratio.

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The pilot program would allow sufficient time for an impact analysis of expanding fare-free rides for K-12 students to be completed and presented to Council as part of the 2025-27 Financial Plan.

4. Updates to the Downtown Access Pass (DAP) Program.

The Transit Innovation Study recommends policy changes to the DAP program to simplify the enrollment and re-enrollment processes. Eliminating the 90-day reverification requirement and making this simply an annual renewal process could facilitate participation and simplify program administration.

Instead of email, it is also recommended that users can enroll online by completing an easy to access form, which could be made available by the City through the Laserfiche platform. These policy changes can be done administratively and with little impact on staff workload.

Other changes recommended like including regional services in the DAP program and expanding boundaries for eligible participants will take more analysis that can be accomplished through the Short-Range Transit Plan update process.

Integration into Short-Range Transit Plan
The Transit Innovation Study report recommendations will inform the SRTP development process, which kicked-off October 3, 2023. One of the main deliverables of the SRTP is a Transit Operations Plan and associated constrained budget for a five-year period beginning in Fiscal Year (FY) 2026. Recommendations that are appropriate for inclusion in the Transit Operations Plan include fixed-route service changes, analysis of micromobility services, fare changes, and cost estimates for technological improvements. The SRTP schedule has the Transit Operations Plan going before the necessary advisory bodies, including City Council, between May and June 2024 for review and comment. A final draft of the SRTP is scheduled to go before Council in Spring 2025 for consideration.

Study Session Feedback
Staff is interested in receiving feedback from Council on the recommendations in the final draft of the report. Several questions are listed below to help facilitate the discussion.

1. Does Council agree with the prioritization of the recommendations? a. If not, how should the recommendations be re-ordered to better address the transit needs of the community?

2. Are there items not listed in the recommendations or considered as part of the study that Council would like to see included in the final report?

3. Does Council agree with the implementation approach described above?

4. Which recommendations would Council like further analyzed through the ShortRange Transit Plan update process?

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Previous Council Action

1. November 7, 2023 – Council continued the item to the January 23, 2024, meeting after taking public comment. Since the November 7th meeting, staff has added information regarding potential funding through the TIRCP and ZETCP programs as well as added, for Council’s consideration, a draft Resolution approving a pilot program expanding fare and pass options for K-12 students.

2. June 6, 2023 – Council adopted the 2023-25 Financial Plan which includes the Climate Action Major City Goal.

3. February 21, 2023 – Council adopted the 2023 Access and Parking Management Plan which serves as Parking Services’ guiding policy document and included recommendations that align with the City’s broader climate action goals and mode split objectives.

4. December 13, 2022 – Council adopted the Climate Action Plan 2023-27 Work Program which reaffirms the direction to achieve the mode split objectives by 2030 and directs staff to incorporate the Transit Innovation Study findings into the Short Range Transit Plan update.

5. August 16, 2022 – Council received a report on the Transit Program Analysis and gave strategic direction that the City will continue operating SLO Transit.

6. February 2, 2021 – Council adopted the Active Transportation Plan, which identifies the close relationship between transit and active transportation in achieving the City’s mobility goals.

7. August 18, 2020 – Council adopted the Climate Action Plan for Community Recovery, which established 2030 as the new date for the City to achieve the General Plan mode split objectives.

8. December 9, 2014 – Council adopted the Land Use and Circulation Elements of the General Plan, which established the mode split objective of 12% of trips occurring via transit.

Public Engagement
Throughout the development of the Transit Innovation Study, Transit staff and the consultant, IBI Group, solicited feedback from internal and external stakeholders. Internal stakeholders consisted of Transit staff, the Active Transportation Manager, and Office of Sustainability staff. External stakeholders consisted of representatives from Cal Poly, Downtown SLO, San Luis Obispo Chamber of Commerce, San Luis Obispo Regional Transit Authority (RTA), San Luis Obispo Council of Governments (SLOCOG), Mass Transportation Committee members, and Active Transportation Committee members.

IBI Group produced seven memos on topics ranging from existing conditions and needs assessment to service enhancements evaluation. Between May and August of 2023 memos were sent to both internal and external stakeholders for review and comment.

The comments were then incorporated into their respective memos and compiled into a

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draft report. Staff completed an initial review of the draft report then scheduled a workshop through which stakeholders would have an opportunity to review the recommendations as presented by the consultant and to re-prioritize them based on their experiences of transit in the City and beyond.

Stakeholder Workshop
On September 25, 2023, staff held a stakeholder workshop and invited those involved in the memo review process as well as representatives from the City’s Community Development Department, Ride-On Transportation, Cal Poly’s Associated Students, Inc. (ASI), SLO Climate Coalition, YIMBY Action, and Diversity SLO. The two-hour workshop included a breakout session based on participants’ areas of interests, a recommendation prioritization exercise, and an open discussion about the applicability of the recommendations to SLO Transit.

Staff used Slido during the workshop for participants to rank the draft recommendations based on the effect of their ability to increase ridership. The top 5 priorities were developed based on input from fourteen (14) of the participants. The clear number one priority was Enhance Service on Fixed Routes which focuses on reducing headways by adding trips to existing routes and exploring the need for new routes. The number two priority was pursuing an open-loop payment system which would allow for greater payment flexibility and reduce cash handling for operators. An open-loop payment system would be pursued in coordination with RTA, so riders of both systems can use their preferred payment option seamlessly across both transit services. Slido poll results are included as Attachment C to this report.

Figure 3 - Slido Poll Results from Stakeholder Workshop

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On November 13, 2023, staff met with Laguna Middle School staff to discuss expanding K-12 fare and pass options. School staff forwarded my contact information and the proposed student pass and fare options to the school’s Parent Teacher Association (PTA) and would provide information to parents who purchase 31-day student passes from the school. As of the drafting of this report, no feedback was received as a result of the outreach.

CONCURRENCE
The City’s Office of Sustainability and Natural Resources and the Active Transportation Manager concur with the recommendations and priorities detailed within the Transit Innovation Study report.

The draft Resolution approving a pilot program to expand fare and pass options for K-12 students was presented to the Mass Transportation Committee (MTC) at a regularly schedule meeting on Wednesday, January 10, 2024. The MTC received staff’s presentation of the item and recommended that City Council adopt the draft Resolution approving the pilot program.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended actions in this report, because the action does not constitute a “Project” under CEQA Guidelines Section 15378. The Transit Innovation Study report and temporary expansion of discounted fare and pass options are administrative activities of a governmental agency that will not result in direct or indirect physical impacts on the environment. Future projects, programs, and actions listed in the Transit Innovation Study report may be subject to CEQA, per the normal environmental review process.

FISCAL IMPACT
Budgeted: Yes Budget Year: 2023-24
Funding Identified: Yes
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund
State
Federal
Fees
Transit Fund $ 0 $ 0 $ 0 $ 0
Total $ 0 $ 0 $ 0 $ 0

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Item 7a
There are no financial impacts directly associated with the receiving and filing of the Transit Innovation Study final report. The Transit Innovation Study report update was funded through the adoption of the 2021-23 Financial Plan. The initial budget was $75,000 and IBI Group’s proposal came in at $74,805. The project is funded through the Transit Fund’s Contract Services account.

Staff anticipates minimal impact on Transit Fund revenue resulting from the expansion of student fare and pass options. Parents and students will likely continue to purchase the 31-day pass or purchase the proposed 15-ride pass as a more flexible option. The pilot program period gives staff time to evaluate actual financial impacts and provide an analysis to Council for their consideration.

Implementation of recommended action items detailed in the study is not covered in the fiscal impact section of this report but will be analyzed and presented as individual actions are taken to Council for review and approval.

ALTERNATIVES

1. Council could choose not to receive and file Transit Innovation Study. Staff does not recommend this alternative because the report has been reviewed and updated based on stakeholder input, includes prioritized recommendations to best reestablish SLO Transit ridership, and will inform the Short Range Transit Plan.

2. Council could choose not to adopt the draft Resolution. Staff does not recommend this alternative because expanding fare options is supported by the Transit Innovation Study report and has been requested by parents of K-12 students.

ATTACHMENTS
A - Draft Resolution approving a pilot program expanding fare options for K-12 students B - Transit Innovation Study Final Report Draft
C - Slido poll results from 9-25-2023 Stakeholder Workshop

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R ______
RESOLUTION NO. _____ (2024 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS

OBISPO, CALIFORNIA, APPROVING A PILOT PROGRAM EXPANDING FARE OPTIONS FOR K-12 STUDENTS FOR SAN LUIS OBISPO (SLO)

TRANSIT
WHEREAS, cash fares and prepaid pass options for SLO Transit have not changed since April 2017; and
WHEREAS, SLO Transit only offers a discounted 31-Day pass for K-12 students as well as fare free rides during summer months in coordination with other transit providers throughout the region; and
WHEREAS, the City recently completed a Transit Innovation Study which recommends providing more accessible fare options for students by expanding fare free rides for K-12 students beyond the summer months; and
WHEREAS, analyzing potential impacts of expanding fare free rides for K-12 students will take significant staff time and outreach since it could jeopardize SLO Transit’s ability to maintain its required 20% minimum farebox recovery ratio; and WHEREAS, since September 2023, the City has received correspondence from parents of K-12 students requesting expanded fare and pass options beyond the 31-Day pass similar to those offered by SLO Transit for senior and disabled riders; and WHEREAS, as an immediate solution to addressing the need for expanded student fare and pass options, staff recommends establishing a pilot program allowing SLO Transit to offer a discounted single ride fare and a discounted 15-Ride pass for K12 students at the rates shown in Exhibit A effective February 1, 2024, through June 5, 2025; and
WHEREAS, the pilot program would allow sufficient time for an impact analysis of expanding fare free rides for K-12 students to be completed and presented to Council as part of the 2025-27 Financial Plan; and
WHEREAS, offering expanded fare and pass options increases access to affordable transportation for K-12 students and provides minor financial relief to parents while also increasing local transit ridership; and
WHEREAS, at a regularly scheduled meeting on January 10, 2024, the Mass Transportation Committee considered the proposed changes to SLO Transit’s rate structure and made a recommendation that Council adopt the Draft Resolution; and WHEREAS, at its regular meeting on January 23, 2024, the City Council considered the proposed changes to SLO Transit’s rate structure.

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Resolution No. _____ (2024 Series) Page 2
R ______
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that the recitals stated above are true and correct and that SLO Transit’s fare rate structure is hereby adopted as set forth in and incorporated herein as Exhibit A.

Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote:

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this _____ day of _______________ 2024. ___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk

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Resolution No. _____ (2024 Series) Page 3
R ______

EXHIBIT A
Fare Type Current Rate Proposed Rate
Regular $1.50 $1.50
Student (K-12) N/A $1.00
Senior/Disabled $0.75 $0.75
Pass Type Current Rate Proposed Rate
31-Day Regular $40.00 $40.00
31-Day Student (K-12) $25.00 $25.00
31-Day Senior/Disabled $20.00 $20.00
16-Ride Regular $24.00 $24.00
15-Ride Student (K-12) N/A $15.00
15-Ride Senior/Disabled $11.25 $11.25
7-Day $15.00 $15.00
5-Day $12.00 $12.00
3-Day $7.00 $7.00
1-Day $3.25 $3.25
Regional Day Pass $5.50 $5.50
Effective February 1, 2024, through June 5, 2025, unless otherwise further modified by adopted Resolution

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Final Report
SLO Transit Innovations Study
Prepared for SLO Transit
by Arcadis IBI Group

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ARCADIS IBI GROUP FINAL REPORT

SLO TRANSIT INNOVATION STUDYSLO TRANSIT INNOVATIONS STUDY Prepared for SLO Transit
Document Control Page
CLIENT: SLO Transit
PROJECT NAME:

REPORT TITLE: SLO Transit Innovations Study
IBI REFERENCE:

VERSION:

DIGITAL MASTER:

ORIGINATOR: Josh Albertson, Brady Vanlo, Steve Wilks, Debjit Banerjee REVIEWER: Nihit Jain
AUTHORIZATION: Santosh Mishra
CIRCULATION LIST:

HISTORY: V3.0 October 30, 2023

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Table of Contents
i
Executive Summary......................................................................................................................1 Introduction ...................................................................................................................................6 1 Background.........................................................................................................................7 2 Existing Conditions and Needs Assessment ..................................................................9

2.1 Stakeholders ............................................................................................................9

2.2 Existing Systems......................................................................................................9 3 On-Board Technology Upgrades for Ongoing Operations ..........................................12

3.1 CAD/AVL System Replacement ............................................................................12

3.2 APC Replacement .................................................................................................13

3.3 Improved Camera Systems ...................................................................................14 4 Technologies that Improve Riders’ User Experience ...................................................16

4.1 Enhanced Real-Time Passenger Information Systems.........................................16

4.2 Open Loop Payments ............................................................................................18

4.3 MaaS Platform .......................................................................................................18 5 Fare Program Updates to Increase Transit Accessibility.............................................20

5.1 Fare Changes for Student, Senior, and Low-Income Riders.................................21

5.2 Institutional Program Recommendations...............................................................22

5.3 Downtown Access Passes.....................................................................................23 6 Bus Shelter and Street Improvements for Rider Safety and Comfort.........................26

6.1 Update Bus Stop Amenity Inventory......................................................................26

6.2 Lighting Improvements...........................................................................................28

6.3 Shelter Improvements............................................................................................28

6.4 Bike Parking...........................................................................................................29

6.5 Mobility Hubs .........................................................................................................32

6.6 Bus Bulb Outs ........................................................................................................33 7 Service Enhancements ....................................................................................................35

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Table of Contents (continued)
ii

7.1 Enhanced Service on Fixed Routes ......................................................................35

7.2 Pursue Microtransit Mobility Services....................................................................38

7.3 Implement Bikeshare Program ..............................................................................38

7.4 Implement Carshare Program ...............................................................................39

7.5 Implement a Transit Signal Priority Strategy .........................................................40 8 Summary............................................................................................................................43

8.1 Recommendations .................................................................................................43

8.2 Funding Sources....................................................................................................45 Appendix A – Existing Systems ................................................................................................48 Appendix B – Needs Assessment.............................................................................................52 TABLES
Table 1: SLO Transit Innovations Study Recommendations ............................................... 5 Table 2: Recommendations related to Improvements to On-Board Technology .............. 12 Table 3: Recommendations Related to Innovative Mobility Concepts .............................. 16 Table 4: Recommendations Related to Fare Policies and Programs................................ 20 Table 5: SLO Transit Fare Programs................................................................................. 20 Table 6: SLO Transit Fare Categories ............................................................................... 21 Table 7: Recommendations Related to Bus Stop Enhancements..................................... 26 Table 8: Recommendations Related to Service Enhancements ....................................... 35 Table 9: Recommendations for SLO Transit ..................................................................... 44 Table 10: FTA Grant Opportunities.................................................................................... 47 Table 11: Systems Inventory ............................................................................................. 49 Table 12: SLO Transit Needs ............................................................................................ 53

FIGURES
Figure 1. SLO Transit Service Map...................................................................................... 8 Figure 2: SLO Transit Existing Systems ............................................................................ 11

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Table of Contents (continued)
iii
Figure 3. An example of an RTPI sign at a Massachusetts Bay Transportation Authority (MBTA) Implementation Bus Stop ................................................................... 17 Figure 4: Levels of MaaS................................................................................................... 19 Figure 5: Downtown Access Pass Program Boundaries .................................................. 24 Figure 6: Downtown SLO Transit Center........................................................................... 27 Figure 7: Orcutt at Laurel Bus Stop ................................................................................... 27 Figure 8: South at Parker (E) Bus Stop ............................................................................. 29 Figure 9: Bike racks at Chorro and Monterey St................................................................ 30 Figure 10: CalPoly Bike Lockers Located on Village Dr. ................................................... 31 Figure 11: Mobility Hub Example (Source: SANDAG)....................................................... 33 Figure 12: Bus Bulb Outs (Source: NACTO) ..................................................................... 34

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SLO TRANSIT INNOVATION STUDY
Prepared for SLO Transit
1 Executive Summary
The Transit Innovations Study presents the City of San Luis Obispo with a unique opportunity to reimagine SLO Transit. In 2020, the City set an ambitious mode-split objective target for 12% of trips to occur on transit by 2035, while it simultaneously experienced a dramatic decline in transit ridership due to the COVID-19 pandemic. SLO Transit needs to provide the community with approximately 500,000 additional trips every year to return to pre-pandemic levels when the mode split objective was established. This bold and ambitious commitment to increasing transit ridership necessitates moving beyond incremental change and investing in transformative solutions.

Transportation is the largest source of the City’s climate emissions, and transit is a key lever to reduce emissions. The City also recognizes that public transit is more than a climate solution – it is equally a housing, parking, equity, and inclusivity solution. As the construction of new subdivisions comes to a close, the City will increasingly rely on infill development to keep pace with housing demand. As new housing increases the density of existing neighborhoods, SLO Transit can alleviate parking concerns while providing an affordable mobility option for a growing community of people that work, live, and play in San Luis Obispo.

This opportunity to bolster and improve SLO Transit is strengthened by the City’s recent staffing and organizational changes. San Luis Obispo’s new Mobility Services Division brings together Transit, Active Transportation, and Parking Services to allow greater coordination between all forms of mobility the City oversees including pedestrian, bike, car, and transit. This staffing change reflects the fact that transit can’t succeed by itself. SLO Transit’s future depends on complementary first-last mile connections and innovative mobility services that give SLO community members the confidence to leave their cars at home or become singlecar households.

The City has also recently affirmed that operating an independent transit service provides unique benefits and tangible value to the community. The Transit Program Analysis findings supplied evidence in support of maintaining an independent SLO Transit, alongside recommendations to partner with San Luis Obispo Regional Transportation Authority to implement certain solutions at a regional scale. As the majority of transportation trips in San Luis Obispo start or end outside of the City, pursuing thoughtful regional solutions that make it easy to transfer between transit providers is key.

This Transit Innovations Study builds on these findings and recommends and prioritizes innovations including critical technology upgrades for ongoing operations; technologies that improve riders’ user experience; fare program updates for low-income, senior, and youth populations; enhanced fixed-route service and complementary alternative mobility services, and bus shelter and street improvements for rider safety and comfort. The City has never been more ready to offer community members integrated multi-modal transportation options, new ideas, and transformative solutions as it works steadfast to reach its 12% transit mode split target over the next twelve years.

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2 SLO Transit Innovations Study
This SLO Transit Innovations Study evaluates opportunities for innovative technology and new mobility services to support the City’s current transit network and help the City achieve its established mode shift goals of 12% transit trips, 20% bicycle trips, and 18% of trips via walking, carpools, and other forms by 2035.

The study aims to put forth actionable recommendations to improve fixed-route transit service, explore alternative service modes, and broadly enhance transit as a viable alternative to private automobile travel. By further investigating and implementing the new technologies and mobility strategies, the SLO Transit Innovations Study strives to improve current transit operations and restore ridership while also taking steps to enhance transit's potential to achieve diversity, equity, and inclusion goals through affordable and dependable mobility options.

The SLO Transit Innovations Study, led by the external consultant IBI Group, provides actionable recommendations that relate to transit and other innovative mobility concepts.

These recommendations were developed in response to needs identified by internal and external transit staff and key stakeholders and were subsequently vetted and prioritized in a stakeholder workshop. Ultimately, the study’s recommendations will be pursued through the 2024-25 Supplemental Budget, upcoming Short-Range Transit Plan update, and future updates to the Climate Action Plan, Active Transportation Plan, and other applicable plans.

Innovations Evaluated by the Transit Innovation Study
In total, the study recommends 19 transit innovations for SLO Transit’s consideration, which are categorized into the five themes below.

On-Board Technology Upgrades for Ongoing Operations
The first category “Critical Technology” includes upgrades that support ongoing operations such as replacing computer-aided dispatch and automated vehicle locater systems (CAD/AVL), upgrading automatic passenger counters, and replacing and improving camera systems on fixed-route vehicles. Key stakeholders agreed these upgrades are necessary for successful ongoing transit operations.

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3 Technologies that Improve Riders’ User Experience
The second category “User Experience” houses technology advancements that improve riders’ user experience. These technologies consist of the enhancement of real-time passenger information, pursuing open loop payments through California Integrated Travel Project (CalITP), and establishing a Mobility-as-a-Service platform. An open-loop payment system—an on-board technology that enables riders to pay for the bus via credit card or a transit card— would reduce friction in the payment process and ensure that SLO Transit is accessible to the next generation of younger transit users. Internal and external stakeholders agree that an open loop payment system is best pursued at a regional level in coordination with San Luis Obispo Regional Transit Authority (RTA), and that it should make it easy for low-income verified transit users to access reduced fares.

Fare Program Updates to Increase Transit Opportunities
The “Fare Programs” category incorporates fare program updates that increase transit accessibility. Ideas such as expanding the downtown access program, implementing fare changes for students, seniors, and low-income riders, and exploring institutional partnerships were grouped into this bucket. These fare program updates would enable SLO Transit to become more convenient and affordable to key constituencies while also better connecting the City’s suburbs to the downtown core. Key partnerships with RTA, Cal Poly, school districts, hospitality businesses, and developers are crucial to getting more riders on regional transit. In all cases, fare program updates must be paired with robust communications and marketing efforts to ensure that residents and commuters are aware of the program/s and how to participate.

Bus Shelter and Street Improvements for Rider Safety and Comfort The final category “Shelters and Streets” covers physical improvements to the bus stops themselves such as improved lighting, improved shelters, and sufficient bike parking. It also touches on constructing mobility hubs to promote bus rider transfers to different mobility options at strategic stops, and constructing bus bulb-outs at downtown stops to increase safety and reduce bus travel time. Contributors to the workshop agreed that creating a safe, comfortable, and secure environment was important to increasing ridership. Stakeholders emphasized the importance of using a standardized design language and creating an ongoing maintenance plan for this solution category.

Enhanced Service and Alternate Transit Options
The “Enhanced Service” category focused on improvements to SLO Transit’s fixed route service as well as the addition of new alternative mobility options that could be operated by SLO Transit or third parties. This category includes service enhancements that decrease headways, launching car and bike share programs, and offering micro-transit services.

Stakeholders who participated in the Transit Innovation Study process overwhelmingly agreed that enhanced service (i.e., running buses more often on popular fixed routes) is vital to increasing ridership. As enhanced service often comes with a high price tag and staffing burdens, there are typically trade-offs between a transit program’s fixed route geographic coverage and its headways. To overcome this challenge, the study recommends implementing enhanced service on certain routes with reduced coverage in other areas, as long as alternative mobility services (i.e., on-demand micro-transit) are introduced provide a feasible alternative for existing SLO Transit riders.

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4 Transit Innovation Study Recommendations
The study’s recommendations summarized in the table below aim to address SLO Transit needs and further its goals of enhancing mobility, restoring ridership, and improving technology. Each of the columns and the values displayed are described in more detail throughout the report.

Relevance to SLO
This column evaluates the degree to which the respective solution maps to the needs of SLO Transit and the City. Through extensive conversations with SLO Transit staff, City staff, and stakeholders this categorization was developed and updated throughout the project to characterize the interests of the community and of the organization relating to a given solution. ‘High’ relevance reflects a solution that directly maps to a need identified through the needs assessment and that received high interest throughout the project. ‘Medium’ directly maps to a lower priority need or high need and received moderate interest. ‘Low’ relevance solutions generally reflect emerging trends that may address some needs for SLO Transit but received lesser interest.

Impact to Ridership
Some recommendations will help directly restore ridership or aim to improve transit reliability so as to expand ridership. These are coded as ‘High’ impact. ‘Medium’ impact recommendations should help improve ridership but are expected to be less impactful than high-ridership impact solutions. Other recommendations are internal planning efforts or operational improvements that will help SLO Transit maintain service levels and efficient operations but may not directly impact ridership. These are coded as ‘Low’ impact.

Timeframe
Recommendations are sorted into projects that can likely be completed in the short-term (1-2 years), medium term (2-3 years), or long-term (3+ years).

Cost
In line with purchasing policies from the City of San Luis Obispo, recommendations may be considered low, medium, or high cost. Low-cost recommendations are Tier 1 purchases (<$10,000 for professional services or <$15,000 for capital projects). Medium-cost recommendations are Tier 2 or 3 purchases ($10,000-$70,000 for professional services or $15,000-$200,000 for capital projects). High-cost recommendations are Tier 4 and above purchases (<$70,000 for professional services or >$200,000 for capital projects).

Priority
This column provides an overall summary priority level considering stakeholder feedback and all other factors presented in this table. ‘High’ priority items are recommended to be integrated into near term policy, budgetary, and programmatic decisions, and thereby initiated within the next 6-12 months. ‘Medium’ priority items are targeted to begin in 12-24 months. ‘Low’ priority items, while still worth pursuing, have dependencies or other long range planning efforts that make those efforts more realistic to be pursued in 24+ months. Priority is distinct from ‘Timeframe’ which only provides guidance on how long each effort may take to complete.

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5 Table 1: SLO Transit Innovations Study Recommendations # Recommendation Category Relevance
to SLO
Impact to
Ridership Timeframe Cost Priority
1 Enhanced Service on Fixed Routes Enhanced
Service High High Medium High HIGH
2 Pursue open loop payments through
Cal-ITP
User
Experience High High Medium Medium HIGH
3 Replace CAD/AVL System on FixedRoute Vehicles Critical Tech High Low Short High HIGH
4 Upgrade Automatic Passenger
Counters on Fixed-Route Vehicles
Critical
Tech High Low Short Medium HIGH
5 Enhance Real-Time Passenger
Information
User
Experience Medium High Short Medium HIGH
6 Replace and Improve Camera
Systems
Critical
Tech High Low Short Medium MEDIUM
7 Fare Changes for Students, Seniors,
Low-Income Riders
Fare
Programs High High Short Low MEDIUM
8 Explore Institutional Partnerships Fare
Programs Medium High Medium Low MEDIUM
9 Pursue Micro-Transit Mobility
Services
Enhanced
Service Medium High Long Medium MEDIUM
10 Expand Downtown Access Program Fare
Programs High Medium Short Low MEDIUM
11 Launch a Bikeshare Program Enhanced
Service Medium Low Short Low MEDIUM
12 Install Lighting, Shelters, and Bike
Parking at Applicable Bus Stops
Shelter and
Streets Medium Medium Medium Medium MEDIUM
13 Establish a Mobility-as-a-Service
Platform
User
Experience Medium Medium Long High LOW
14 Investigate and Establish Mobility
Hubs
Shelter and
Streets Medium Medium Medium High LOW
15 Launch a Carshare Program Enhanced
Service Medium Low Medium Medium LOW
16 Implement a Transit Signal Priority
Strategy
Enhanced
Service Low Low Medium High LOW
17 Add Bus Bulb-outs Downtown Shelter and
Streets Medium Low Long Medium LOW

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6 Introduction
The Transit Innovation Study evaluates opportunities for new technology and new delivery modes that will support the City’s current transit network and help achieve its established mode shift goals of 12% transit trips, 20% bicycle trips, and 18% of trips via walking, carpools, and other forms by 2035. These goals emphasize the need to bolster transit and other active transportation modes as viable alternatives to the private automobile. Historically, SLO Transit has been largely focused on traditional fixed-route bus service. This study will lend insight into new technologies and innovations to improve fixed-route service as well as innovative transit concepts related to micro-transit, micro-mobility, fare structures, and more.

By further investigating and implementing the new technologies and mobility strategies discussed in this plan, SLO Transit strives to improve current transit operations and restore ridership while also taking steps to enhance transit's potential to achieve diversity, equity, and inclusion goals through affordable and dependable mobility options.

The Transit Innovation Study is informed by and helps support the City’s many existing planning documents, including the:
o Land Use Element of the General Plan which represents a generalized blueprint for the future of the City of San Luis Obispo by setting forth a pattern for the development of land within the City’s planning area.
o Circulation Element of the General Plan which aims to recognize implications of land use policy on all modes of movement and establishes mode shift goals, policies, standards, and implementation measures that work with the Land Use Element update and address both existing and potential circulation opportunities and deficiencies.
o Active Transportation Plan which sets forth goals for San Luis Obispo to become an active transportation friendly city where people of all ages, incomes, backgrounds and ability levels have access to sustainable transportation options that are healthy, comfortable, convenient and affordable.
o Access and Parking Management Plan which provides context on commuter transportation and identifies opportunities to improve parking policies and strategies in an effort to encourage more sustainable modes of transportation. o Climate Action Plan which establishes a Council adopted community-wide goal of carbon neutrality by 2035 with an objective to achieve the mode split objective of 7% transit use by 2030 and 12% transit use by 2035.

The Transit Innovation Study provides actionable recommendations that relate to transit and other innovative mobility concepts for possible inclusion in the 2024-25 Supplemental Budget, and future updates to the Climate Action Plan, Short-Range Transit Plan, Active Transportation Plan, and other future applicable plan updates. The Transit Innovation Study also strives to address diversity, equity, and inclusion goals through affordable and dependable mobility options.

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7 1 Background
San Luis Obispo (SLO) Transit is a municipal system administered through the City’s Public Works Department. SLO Transit plays a crucial role in providing safe transportation options for students at the California Polytechnic State University (Cal Poly), residents, local employees, and visitors. SLO Transit works with other departments within the City for ongoing planning and improvement of mobility services in the region.

In addition, SLO also works with the San Luis Obispo Council of Governments (SLOCOG) which serves as the Regional Transportation Planning Agency (RTPA) and Metropolitan Transportation Organization (MPO) for the County as well as San Luis Obispo Regional Transit Authority (RTA) which operates the regional fixed-route and paratransit services. SLO Transit contracts its operations for the provision of drivers, dispatching, road supervision, and maintenance. Transdev (formerly First Transit) is the City’s current contractor.

The program’s services are provided via the City’s Transit Fund, which is made up of federal funding, state funding, and local revenue. Like many agencies, ridership and farebox revenue for SLO Transit have decreased since the COVID-19 pandemic. Restoring ridership numbers to pre-pandemic levels remains a top priority for SLO Transit.

Currently, the transit program has eight fixed routes operating throughout the downtown and surrounding area and maintains the following capital assets:
• 17 revenue vehicles and 2 support vehicles
• Operations and maintenance facility
• Bus wash system
• Transit center with sawtooth bays and four deluxe shelters • 165 bus stops
In addition to SLO Transit, the City is serviced by the San Luis Obispo Regional Transit Authority (RTA). RTA provides intercommunity public transportation. RTA’s service area includes all of San Luis Obispo County and extends into Santa Barbara County to the south.

RTA provides regional fixed-route service and Americans with Disabilities Act (ADA) complementary paratransit service (Runabout) for RTA fixed-route as well as SLO Transit routes.

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8 Figure 1. SLO Transit Service Map

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9 2 Existing Conditions and Needs Assessment
This section outlines the current technologies utilized by SLO Transit for operations and administration as well as the technologies used by drivers and riders on-board. In addition, a needs assessment was conducted to analyze the current state of SLO Transit’s fixed-route transit technology and the needs that stem from those systems and related systems. It is important to note that the list of needs developed for this plan, while critical to this effort, are not exhaustive. Other needs identified in previous planning documents were considered in creating recommendations. These included:
• Achieving mode split of 7% transit use by 2030 in pursuit of carbon neutrality, as outlined in the Climate Action Plan and Short-Range Transportation Plan • Reducing emissions through improving active transportation offerings and amenities such as additional bike parking, as discussed in the Active Transportation Plan • Easing the cost of transportation for low-income individuals, as described in the Access and Parking Management Plan
• Need to reduce headways and improve on-time performance as identified in the ShortRange Transportation Plan.

2.1 Stakeholders
To document existing systems and assemble a list of needs, virtual meetings were conducted in January and February 2023 with City of San Luis Obispo staff and contracted staff, who handle operations and maintenance on behalf of SLO Transit. These meetings included discussions with key personnel and departments including transit planning, operations, maintenance, administration, active transportation, sustainability, and finance.

Once the SLO Transit assembled the list of needs, it shared this list with relevant external stakeholders including Mass Transportation Committee (MTC) members, Downtown SLO, SLOCOG, the Chamber of Commerce, and RTA. These organizations continued to share feedback and were involved throughout the remainder of the project as well.

2.2 Existing Systems
The technologies relevant to SLO Transit operations can be grouped into the following categories:
• Onboard: Refers to technology systems installed onboard SLO’s bus fleet. These systems often interface with the central systems through cellular data communications, radio communications, or satellite.
• Central: Refers to systems that are installed for SLO operations, maintenance, and planning. This includes central automatic vehicle location (AVL) components as well as farebox software, camera software and maintenance management systems. • Garage: Refers to systems that are installed at SLO’s garages and in the yard. These systems are often interfaced with the central systems through a direct wired network connection, and with onboard systems through wireless data communications access

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10 points. This includes diagnostic software and electric charging components for battery electric buses (BEBs).
• Public Systems: Public-facing systems are closely integrated with central systems but disseminate information to the public via the Internet using an external customer interface (e.g., SLO Transit website or third-party applications). These systems are accessible outside the firewall to protect the central systems from external network threats.

A high-level system interconnect diagram is provided in Figure 2 to show relationship between various systems and technologies. Appendix A provides an inventory of these existing systems and more details as to their function in the current transit environment.

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11 Figure 2: SLO Transit Existing Systems

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12 3 On-Board Technology Upgrades for Ongoing Operations Technologies impact every aspect of fixed-route services including planning, schedule development, operations, maintenance, revenue management, providing timely information to customers, and many others. In conjunction with the SLO Transit needs found in Section 2, an industry scan of relevant transit technologies was prepared to help inform the possibilities SLO Transit could pursue to improve operations.

Of the twelve technologies discussed in the industry scan, three solutions were identified as particularly relevant to SLO Transit needs and priorities. These on-board technology improvements are critical for maintaining ongoing fixed-route services and are notable pain points for SLO Transit; unreliable vehicle location data, inconsistent passenger counts, and aging camera systems place the agency at a disadvantage when it comes to maintaining operations. This section provides a summary of three on-board technology solutions, their relevance to SLO operations, and an estimate of costs involved with procuring each technology.

Table 2: Recommendations related to Improvements to On-Board Technology # Recommendation Relevance
to SLO
Impact to
Ridership Timeframe Cost Priority
3 Replace CAD/AVL
System on Fixed-Route
Vehicles
High Low Short High HIGH
4 Upgrade Automatic
Passenger Counters on
Fixed-Route Vehicles
High Low Short Medium HIGH
6 Replace and Improve
Camera Systems High Low Short Medium MEDIUM

3.1 CAD/AVL System Replacement
Computer Aided Dispatch/Automated Vehicle Location (CAD/AVL) technology provides tools to track vehicle position at a predefined interval and provides tools to manage operations in real-time from a centralized or remote-control center. CAD tools provide the capabilities to communicate with drivers, monitor route and schedule adherence and respond to events/incidents. AVL technology serves as a core component to many other transit technology applications that rely on vehicle location (e.g., real-time passenger information signage and on-board next stop announcements).

CAD/AVL systems also provide data for offline reporting and analyses. The system includes mobile data computer (MDC) on vehicles that are equipped with schedule data and communicate with a central control software in real-time.

Many CAD/AVL systems designed for fixed-route transit are feature-rich and boast comprehensive integration with other transit systems (such as APCs, Headsigns, etc.).

However, there are also CAD/AVL Lite systems that can be cheaper and focus primarily on vehicle tracking and microtransit capabilities. On-board features typically include GPS antenna

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13 and receiver, on-board computer, mobile data terminal, and radio or cellular data communications modem. Software is typically cloud-based and allows for operation on a variety of central-end hardware.

Based on SLO Transit operational needs as shown in Figure 2, SLO Transit’s current CAD/AVL system is not functioning properly and lacks many of the features critical for fixed-route operations. Operations staff reported instances of the current system glitching and freezing, and difficulties performing reporting. Staff also identified issues with incorrect vehicle locations appearing on the SLO Transit app and vehicle estimated time of arrival (ETAs) not always being correct.

Because the CAD/AVL system interfaces with critical components such as real-time passenger information signs at SLO Transit Center, the SLO Transit application, and annunciators on board, it means that sometimes, incorrect location data from the CAD/AVL system is being shared, which affects the arrival times and stop announcements that riders see and hear when using the bus. This has a direct impact on rider experience and impacts evaluations of the system.

The replacement of the CAD/AVL system is a high priority recommendation that addresses needs for improved dispatch, administration reporting, and customer service operations.

Despite limited impacts to ridership directly, the project team determined this solution directly addresses a critical need relating to unreliable information and dysfunctional technology, and that such a solution would greatly benefit current and future SLO Transit riders.

3.1.1 Cost
For the traditional CAD/AVL systems which would be recommended for fixed-route vehicles, the major cost components are divided across three categories: central systems, onboard systems and project implementation and testing. The cost for CAD/AVL systems is dependent on the included features and functionality but is typically in the range of $15,000-$20,000 per vehicle for onboard systems and $500,000-$1,500,000 for central software and systems, plus 10-20% of the total amount for project management, testing, documentation and training. In addition, ongoing warranty and support costs can be significant, ranging from 10-20% of the total project hardware, software, and implementation cost on an annual basis.

Total costs for a project of this size for SLO Transit could be on the lower side, depending on the features included. For a fleet of SLO Transit’s size, an improved CAD/AVL system would likely be in the range of $300,000-$500,000.

3.2 APC Replacement
Automated Passenger Counters (APCs) are useful tools for system planning, performance monitoring and reporting. APCs provide detailed boarding and alighting information at each doorway for each stop and time along a route. Data on passenger volumes and stop-level passenger activity can be used to plan route changes, service level adjustments and investments in bus stop amenities. APC technology consists of sensors located on the bus (door-mounted or overhead) along with controllers and a central software that collects and process the data.

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14 APC software can either be a stand-alone system or it can be integrated into a CAD/AVL onboard computer. APC systems can provide real-time capacity data (through CAD/AVL system) or provide data for offline analysis after download and post-processing. An integrated system reduces additional post processing and allows for a single data repository.

SLO Transit’s existing APC system is run through the AVL system. It was installed on most of the buses, but they have not worked as intended since installation. Because the APC system directly estimates ridership, an improved APC system can provide 100% passenger mile data for annual NTD reporting, which would eliminate need for extensive sampling and help improve accuracy. This also directly impacts funding the agency may receive. It also impacts planning efforts related to increasing ridership as it provides a helpful gauge of system performance.

3.2.1 Cost
APC system costs for onboard APC equipment range from $2,000 to $3,500 per vehicle for 2 door vehicles. APC software costs range from $10,000-$15,000 for software that does not post-process counts to $50,000-$100,000 for software that does complex post-processing and generates multiple reports and visual dashboards.

Total costs for SLO Transit would be near $75,000 for a system that does not perform post processing, or $125,000 for a system that does include those functions.

3.3 Improved Camera Systems
Video surveillance is often used to ensure safety and deter theft or violence on vehicles.

Camera technology can also allow agencies to perform additional functions such as automatic bus lane enforcement, passenger count, and incidence management. This can include cameras (either IP or analog), a digital/network video recorder (DVR, NVR), a router or WLAN to connect to a central system.

SLO Transit vehicles have two different camera systems. Most vehicles have older SEON systems, while 3 buses have more modern cameras that interface with CAD/AVL software.

The two different systems result in procedural inconsistencies for data backup and incident reporting. In addition, some of the equipment is older and becoming outdated.

Because of the inconsistent and aging systems, incidents that occur onboard are often reviewed through DriveCam, which is reliable but only captures one angle and is not useful for incidents that occur on the side of the bus. An improved camera system could allow SLO Transit to capture multiple angles for incident reporting, allow for wireless transfer of data, and standardize processes. The City would also benefit from ensuring WLAN functionality on new buses for ease of data transfer in the future. Improved camera capabilities are considered a short-term and high-need issue for safety and security purposes.

3.3.1 Cost
Costs for camera systems are largely contingent on the resolution of data capture and number of cameras installed within a vehicle. For a typical 40-foot vehicle for a fleet of SLO Transit’s size, the costs are as follows:
• On-Board Equipment and Installation:

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San Luis Obispo City CouncilJanuary 23, 2024

San Luis Obispo City Council
January 23, 2024