City Manager Message
With graƟtude,
Whitney McDonald
Interim City Manager
Budget Page 7
Changes from Financial Plan
SecƟon 2. Changes from Financial Plan
FY 2023‐24 Mid‐Year Adjustments
Staff used the FY 2023‐24 Mid‐Year Budget Report to make considerable changes to the financial plan.
Specifically, Council approved strategic use of unassigned fund balance from the prior year as confirmed through the annual audit according to SecƟon 8 of the City’s Fiscal Policies:
The City sets the following prioriƟzaƟon of unassigned General Fund Balance:
a. AddiƟonal discreƟonary payments to CalPERS
b. Infrastructure investments
c. Emerging Health and Safety needs of the community
FY 2023‐24 expenditurestherefore increased by nearly $13 million based on a combinaƟon of overrealized revenues, use of capital reserves, and changes to capital and replacement fund budgets.
In line with our policy, these budget changes were all one‐Ɵme in nature and therefore do not impact FY 2024‐25.
The mid‐year acƟon also included a recommendaƟon to transfer an addiƟonal $3.8 million of unassigned General Fund balance from FY 2022‐23 to the Infrastructure Investment Fund, conƟngent upon reimbursement of costs related to the 2023 winter storms. As the City has yet to receive funds, this recommendaƟon remains conƟngent upon repayment.
FY 2024‐25 Significant OperaƟng Budget Changes (SOBCs)
The Supplemental Budget presents an opportunity for departments to adjust their budgets within the limits set forth by the Financial Plan, using expected savings in certain expenditures to offset increases elsewhere. In addiƟon, departments were invited to submit SOBCs to address emerging needs of the City.
General Fund
Departments submitted $2.2 million in General Fund SOBC requests. In light of the projected deficits in the General Fund in future years of the 5‐year financial forecast, the Financial Plan Steering Committee requested that departments critically review their requests and place them in one of the following categories:
1. The request can be deferred to the 2025‐27 Financial Plan;
2. The request is for one‐time funding and can potentially be funded with carryover available at the end of FY 2023‐24 (availability of carryover funding is dependent on departments finishing the year with operating budget savings and funding is not guaranteed); and Funding Source Amount
General Fund FY 2022‐23 unassigned fund balance 6,471,095 Local Revenue Measure FY 2022‐23 unassigned fund bala 3,872,937 Capital Reserve 1,860,000
Completed projects or reallocation of project budgets 680,000 IT Replacement Fund 33,200
Total $ 12,917,232
Budget Page 8
Changes from Financial Plan
3. The request is critical for consideration with the FY 2024‐25 Supplemental Budget and the department has identified tradeoffs within their planned budget for FY 2024‐25 to fund the new request.
The categorization of SOBCs helped to significantly reduce the number of requests to be considered for recommendation as part of the Supplemental Budget. Minimal SOBCs are recommended to support criƟcal needs or address mandates in FY 2024‐25. RecommendaƟons total $485,057 of new General Fund dollars in FY 2024‐25; of that amount, $167,804 is one‐Ɵme and $317,253 represents an ongoing cost.
Several SOBCs result in a transiƟon of limited duraƟon staff resources to permanent posiƟons. In some cases, departments idenƟfied expenditures within their budgets that could be reallocated to offset the cost of the recommended SOBCs. The reallocaƟon of budget to offset the new costsis permanent, in order to provide a sustainable resource for the recommended SOBCs. In one unique case, funding for the two Finance department requests will come from savings idenƟfied in the Community Services Group. These recommendaƟons will add much needed administraƟve and technology support that will benefit the City as a whole.
Table 2.1. General Fund SOBC RecommendaƟons
More informaƟon about the recommended SOBCs can be found in SecƟon 9‐ Department Updates.
Department Summary of Request Timing Request Offsets Net 1 Admin Convert DEI Fellow contract positon to 1.00 FTE Administrative Specialist Ongoing 91,081 (91,081) ‐ 2 CDD Add 1.00 FTE Building Inspector and Vehicle Ongoing 165,708 (150,000) 15,708 3 CDD
Convert Stormwater Code Enforcement Officer
contract position to 1.00 FTE Stormwater Code
Enfocement Officer and Vehicle
Ongoing 174,271 ‐ 174,271
4 CDD Funding for CAPSLO's Hotel Voucher Program One‐time 45,000 ‐ 45,000 5 City Attorney
Convert Legal Assistant contract position to 1.00 FTE
Legal Assistant Ongoing ‐ ‐ ‐ 6 Finance Add 0.50 FTE Administrative Assistant‐ Confidential Ongoing 35,863 ‐ (35,863) 7 Finance Increase 0.50 FTE Supplemental Financial Analyst (Oracle ERP) to 1.00 FTE Financial Analyst Ongoing 77,626 (77,626) ‐ 8 Fire
Add contract Fire Vehicle Mechanic through FY 2024‐
25 One‐time 122,804 ‐ 122,804 9 Fire Increase 0.50 FTE Fire Inspector to 1.00 FTE Ongoing 32,380 32,380 10 Parks & Rec Public Art Fund operatingexpenses Ongoing 15,000 (15,000) ‐ 11 Police License Plate Reader maintenance cost increase Ongoing 10,000 10,000 12 Police Animal Services contract cost increase Ongoing 84,894 ‐ 84,894 13 Public Works
Add 1.00 FTE Parks Maintenance Superintendent,
1.00 FTE Parks Maintenance Technician and transition
two Supplemental Parks Maintenance Aides to
Limited Benefit Temporary Parks Maintenance Aides
Ongoing 280,271 ‐ (280,271)
14 Total $ (649,841) 1,134,898 $ 485,057 $
Budget Page 9
Changes from Financial Plan
Enterprise and Agency Funds
RecommendaƟons for changes to the enterprise funds’ operaƟng budgets are evaluated based on each fund’s long‐term forecast. Each fund has the ability to support these recommendaƟons moving forward, so offsets are not required in order to fund these recommendaƟons. Staff nevertheless carefully scruƟnized requests and believe these recommendaƟons are criƟcal to maintaining current service levels.
Recommended SOBCs for the UƟliƟes Department include two posiƟons that are allocated across funds.
The 1.00 FTE Engineer will be allocated 0.40 FTE to the Water Fund, 0.50 FTE to the Sewer Fund, and 0.10 FTE to the Whale Rock fund. The 0.75 FTE UƟlity Billing Assistant will be allocated 0.375 FTE to each of the Water and Sewer funds. These recommended posiƟons are duplicated in the tables below to show the budgetary impact of each to the Water, Sewer and Whale Rock funds.
Table 2.2. Water Fund SOBC RecommendaƟons
Table 2.3. Sewer Fund SOBC RecommendaƟons
Table 2.4. Whale Rock Agency Fund SOBC RecommendaƟons
Recommendation Timing Request Offsets Net
1 Add two contract Water Meter Technicians and
funding for integration between billing software and
Advanced Metering Infrastructure
Ongoing 87,904 ‐ 87,904 2 Add 1.00 FTE Engineer Ongoing 17,261 ‐ 17,261 3 Funding for Rate Structure Study One‐time 42,500 ‐ 42,500 4 Add 0.75 FTE Utility Billing Assistant Ongoing 18,127 ‐ 18,127 5 Funding for Nacimiento Pipeline Repairs One‐time 932,459 ‐ 932,459 6 Total $ 1,098,250 $ 1,098,250 ‐ $
Recommendation Timing Request Offsets Net
1 Add two contract Water Meter Technicians and
funding for integration between billing software and
Advanced Metering Infrastructure
Ongoing 87,904 ‐ 87,904 2 Add 1.00 FTE Engineer Ongoing 21,577 ‐ 21,577 3 Funding for rate structure study One‐time 42,500 ‐ 42,500 4 Add 0.75 FTE Utility Billing Assistant Ongoing 18,127 ‐ 18,127 5 Increased Funding for WRRF Electric Utility Costs Ongoing 125,000 ‐ 125,000 6 Add 1.00 FTE Wastewater Collection System Chief
Operator and Vehicle Ongoing 179,345 ‐ 179,345 7 Total $ 474,453 $ 474,453$ ‐
Recommendation Timing Request Offsets Net
1 Add 1.00 FTE Engineer Ongoing 3,706 ‐ 3,706 2 Total $ 3,706 $ 3,706$ ‐
Budget Page 10
Changes from Financial Plan
Table 2.5. Parking Fund SOBC RecommendaƟons
Staff has evaluated the Transit Fund operaƟng budget and does not recommend any significant changes in FY 2024‐25.
Recommendation Timing Request Offsets Net
1 Increased Funding for data processing and
maintenance costs Ongoing 170,200 ‐ 170,200 2 Increased funding for credit card merchant fees Ongoing 304,130 ‐ 304,130 3 Funding for consultant services to complete a
technology road map
One‐time 60,000 ‐ 60,000 4 Total $ 534,330 $ 534,330$ ‐
Budget Page 11
Consolidated Financials – All Major Funds Combined
SecƟon 3: Consolidated Financials – Major Funds Combined The City uses separate funds to run its operaƟons. There are generally five major funds, the General Fund and four enterprise funds: the Water Fund, Sewer Fund, Parking Fund, and Transit Fund. The General Fund uses a combinaƟon of tax and fee revenue to provide services to the community. The enterprise funds operate as separate businesses and generate their own revenues to provide services to fee payers.
The five major funds are consolidated here and reported on in detail individually throughout the report.
Revenues and Expenditures
Table 3.1. Consolidated Revenue
Staff forecast a year over year decrease in revenue next fiscal year as FY 2023‐24 revenue included significant long‐term debt proceeds to finance construcƟon of the Cultural Arts District Parking Structure by the Parking Fund and improvements to the Water Resource Recovery Facility by the Sewer Fund.
Table 3.2. Consolidated Expenditures
In line with the year over year decreases in revenue driven by major capital projects in the Parking and Sewer funds, expenditures are projected to decrease significantly as budget has been expended for those projects in FY 2023‐24. General Fund expenditures are also expected to decline modestly as FY 2022‐23 fund balance was expended in FY 2023‐24 and is not expected to repeat in FY 2024‐25.
FY 2022‐23
Actuals
FY 2023‐24
Mid‐year
Budget
FY 2024‐25
Financial Plan
Budget
FY 2024‐25
Supplemental
Budget Change % Change
1 Tax & Franchise Revenue $ 99,842,239 $ 99,643,156 $ 100,701,662 $ 103,548,018 $ 2,846,356 3% 2 Fee & Other Revenue
3 General Fund 16,568,200 15,240,933 18,823,448 23,278,097 4,454,649 24% 4 Water Fund 29,259,996 31,906,659 30,011,625 32,871,625 2,860,000 10% 5 Sewer Fund 45,686,183 49,788,242 36,398,900 36,398,900 ‐ 0% 6 Parking Fund 7,957,191 56,700,994 10,412,624 9,991,861 (420,763) ‐4% 7 Transit Fund 5,715,762 11,754,973 11,964,525 17,059,186 5,094,661 43% 8 Assessment Revenue 2,478,792 2,416,200 2,464,516 2,398,151 (66,365) ‐3% 9 Total $ 207,508,362 $ 267,451,157 $ 210,777,299 $ 225,545,838 $ 7% 14,768,538 FY 2022‐23
Actuals
FY 2023‐24
Mid‐year
Budget
FY 2024‐25
Financial Plan
Budget
FY 2024‐25
Supplemental
Budget Change % Change
1 General Fund $ 112,789,648 $ 125,306,563 $120,958,660 $122,027,928 $ 1,069,268 1% 2 Business Activities
3 Water Fund 23,952,257 55,052,266 28,441,479 35,144,934 6,703,455 24% 4 Sewer Fund 43,934,895 63,763,698 25,618,489 28,151,584 2,533,095 10% 5 Parking Fund 7,272,763 67,198,514 10,230,346 10,055,657 (174,689) ‐2% 6 Transit Fund 6,354,792 10,846,599 9,614,849 17,222,202 7,607,353 79% 7 Special Revenue
8 Tourism Assessment 2,209,268 $ $ 2,140,800 $ 2,183,616 $ 2,117,251 $ (66,365) ‐3% 9 Downtown Assessment 269,523 275,400 280,900 280,900 ‐ 0% 10 Total $ 196,783,147 $ 324,583,841 $ 215,000,457 197,328,339 $ 16,602,849 $ 9% Budget Page 12
Consolidated Financials – All Major Funds Combined
Fund Balances and Reserves
Fund Balance represents the total of all reserves and unspent funds at the end of the year. It includes operaƟng reserves, restricted funds, and undesignated amounts.
OperaƟng reserves are fundsset aside to conƟnue to fund operaƟonsin the event of an emergency causing the City to exceed its expenditures budget or in the event revenues are not realized as forecasted.
Staff carefully manage fund balance and operaƟng reserves to ensure the City’s financial stability.
Table 3.3. Consolidated Fund Balances
Table 3.4. Consolidated OperaƟng Reserves
Transfers Between Funds
The five major funds generally operate disƟnctly and fund their own operaƟons. When the operaƟons of one fund benefit another, a transfer is made to reimburse those costs. Transfers are also made between varioussub‐funds of the five major funds designated forspecific purposes, like the Local Revenue Measure fund or the Gas Tax Fund, and the General Fund where that money is spent.
OperaƟng Transfers
The City’s General Fund receivesreimbursements and operaƟng transfersfor variousservices and acƟviƟes that are provided by General Fund operaƟng programs. In turn, the General Fund provides funding to various funcƟons for specific uses. The amounts shown below represent the anƟcipated funding that will be transferred between the funds. These transfers also include Cost of Services transfers as detailed in the Cost AllocaƟon Plan approved by Council on May 21st, 2024 coming from the Sewer and Water funds. The Parking Fund transfer includes lease revenue owed to the general fund and interfund loan amounts.
FY 2022‐23
Actuals
FY 2023‐24
Mid‐year
Budget
FY 2024‐25
Financial Plan
Budget
FY 2024‐25
Supplemental
Budget Change % Change
1 General Fund $ 40,537,932 $ 26,359,614 $ 30,433,173 $ 31,483,548 $ 1,050,375 3% 2 Business Activities
3 Water Fund 40,261,007 17,115,400 18,685,546 14,842,091 (3,843,455) ‐21% 4 Sewer Fund 2,429,275 2,785,374 4,041,632 4,108,251 66,619 2% 5 Parking Fund 13,813,435 3,315,915 3,498,193 3,583,042 84,849 2% 6 Transit Fund 2,236,399 3,144,773 5,494,449 2,964,970 (2,529,479) ‐46% 7 Total $ 99,278,048 $ 52,721,076 $ 62,152,994 $ 56,981,903 $ (6,221,466) ‐8% FY 2022‐23
Actuals
FY 2023‐24
Mid‐year
Budget
FY 2024‐25
Financial Plan
Budget
FY 2024‐25
Supplemental
Budget Change % Change
1 General Fund $ 13,727,000 $ 10,825,500 $ 14,526,000 $ 14,586,832 $ 60,832 0% 2 Business Activities
3 Water Fund 4,259,777 5,087,544 5,270,875 5,479,113 208,238 4% 4 Sewer Fund 979,686 966,232 1,002,618 1,002,618 ‐ 0% 5 Parking Fund 814,579 1,262,589 1,485,207 1,550,270 65,062 4% 6 Transit Fund 711,650 1,016,488 1,068,556 1,026,210 (42,345) ‐4% 7 Total $ 20,492,692 $ 19,158,353 $ 23,353,256 $ 23,645,042 $ 230,955 1% Budget Page 13
Consolidated Financials – All Major Funds Combined
Table 3.5. OperaƟng Transfers
General Fund transfers out are to the Insurance Fund for workers compensaƟon coverage and other policies as well as to the Debt Service Fund to meet the City’s obligaƟons and to the Public Safety Equipment Fund to purchase needed police and fire equipment. Transfers in are described below and include transfers from other funding sources for ongoing operaƟons.
Local Revenue Measure transfers out are for LRM funded posiƟons and operaƟng programs paid for out of the General Fund, as well as the remainder of the transfer into the Public Safety Equipment Fund for needed police and fire equipment.
Public Art Fund transfers out reimburse the General Fund for the Public Art Coordinator posiƟon cost.
Gas Tax Fund transfers allow the General Fund to spend gas tax revenue.
TBID Fund transfers are based on a percentage of Transient Occupancy Tax revenue.
Enterprise Fund transfers include cost of services transfers under the City’s Cost AllocaƟon Plan approved on May 21st, 2024 and certain other transfers including an interfund loan between the Parking Fund and the General Fund.
Capital Transfers
The City budgets for capital expenditures from a number of different funds. In some cases this serves to restrict revenue for a specific purpose as required by policy, as is the case for the Local Revenue Measure.
In other cases, capital budgeƟng by fund allows for capital budgets to remain relaƟvely consistent year over year while expenditures fluctuate to align with asset replacement schedules.
Transfers out come from revenue generaƟng funds, and transfers in go to the funds which will incur expenditures for their specific purpose.
Fund Transfer out Transfer In
1 General Fund $7,961,073 $14,676,318
2 Local Revenue Measure $9,455,000
3 Public Art Fund $89,950
4 Gas Tax Fund $1,419,353
5 Housing Fund $207,000
6 TIF Fund $280,000
7 TBID Fund $42,345
8 Parking Fund $375,212
9 Sewer Fund $1,451,616
10 Water Fund $1,387,992
11 IT Replacement Fund $152,000
12 Public Safety Equipment Fund $387,334
13 Debt Service Fund $1,757,889
14 Insurance Fund $6,000,000
15 Total Operating Transfer $22,821,541 $22,821,541
Budget Page 14
Consolidated Financials – All Major Funds Combined
Table 3.6 Capital Transfers
In addiƟon to the transfers above, staff expect to make transfers to the Infrastructure Investment Fund as called for in the FY 2023‐24 Mid‐Year budget recommendaƟons. As noted in SecƟon 2, these transfers are conƟngent upon reimbursement of costs related to the winter 2023 storms.
Reimbursement Transfers
These transfers reimburse the General Fund for direct cost incurred for service to the City’s Enterprise and Agency Funds. The cost comes from internal services departments such as City AdministraƟon (including IT), Human Resources, City AƩorney’s Office, and Finance. It is assessed annually through the City’s Cost AllocaƟon Plan (CAP). The Supplemental Budget numbers are derived from the Cost AllocaƟon Plan approved by Council on May 21, 2024.
Table 3.7 Reimbursement Transfers
Fund Transfer out Transfer In
1 General Fund $3,610,000
2 Local Revenue Measure $22,400,000
3 TDA Bikeways $90,000
5 Capital Outlay $23,245,166
6 Fleet $685,000
7 IT Replacement $1,446,656
8 Major Facilities Maintenance $423,178
9 Infrastructure Investment $0
10 Public Art Fund $300,000
11 Total $26,100,000 $26,100,000
Fund Transfer out Transfer In
1 General Fund $5,367,608
2 Water Fund $1,559,425
3 Sewer Fund $1,838,634
4 Parking Fund $1,256,841
5 Transit Fund $460,609
6 Whale Rock Fund $252,099
7 Total $5,367,608 $5,367,608
Budget Page 15
General Fund
SecƟon 4: Fund Overviews
4a. General Fund
The City has ten departments that provide a full suite of municipal services to the community. Eight of the departments are budgeted enƟrely in the General Fund, and certain programs in the Public Works and UƟliƟes departments are also budgeted in the General Fund (other programs in these departments including Parking, Transit, Water and Sewer are budgeted in Enterprise Funds which are presented in this secƟon of the document separately from the General Fund).
Revenue
The 2023‐25 Financial Plan was developed in a Ɵme of tremendous economic uncertainty. During budget development, inflaƟon was moderaƟng from rates notseen in decades and the Federal Reserve wasraising interest rates at unprecedented rates. Despite calls for a recession, staff projected only a “flaƩening” of cyclical revenues, including Sales Tax and Transient Occupancy Tax.
FY 2023‐24 performance has exceeded this predicted flaƩening and, on the recommendaƟon of consultants, staff have incorporated revenue projecƟons for the Supplemental Budget that reflect conƟnued outperformance of the Financial Plan’s FY 2024‐25 targets.
Table 4a.1. General Fund Revenue
Sales & Use Tax: Staff revised revenue expectaƟons upwards, reflecƟng both current year outperformance of financial plan targets and expectaƟons for future growth driven by new business openings.
Property Tax: The City receives its annual property tax forecasts directly from the County Assessor. In developing the Financial Plan, staff expected a cooling effect on this revenue stream from Federal Reserve FY 2022‐23
Actuals
FY 2023‐24
Budget
FY 2024‐25
Financial Plan
Budget
FY 2024‐25
Supplemental
Budget Change % Change
Tax Revenue
1 Sales & Use Tax $ 52,926,619 $ 53,391,093 $ 54,572,619 $ 56,383,599 $ 1,810,980 3% 2 Property Tax 22,216,031 22,863,770 22,651,995 23,446,385 794,391 4% 3 Transient Occupancy Tax 11,037,037 10,704,000 10,918,080 10,586,256 (331,824) ‐3% 4 Utility Users Tax 6,904,194 6,332,000 5,881,630 6,622,639 741,009 13% 5 Franchise Fees 2,349,603 2,000,000 1,910,000 2,091,800 181,800 10% 6 Business Tax Certificates 3,281,010 3,252,293 3,317,338 3,317,338 ‐ 0% 7 Cannabis Tax 1,127,744 1,100,000 1,450,000 1,100,000 (350,000) ‐24% 8 Tax Revenue Subtotal 99,842,239 $ $ 99,643,156 $ 100,701,662 $ 103,548,018 $ 2,846,356 3% 9 Police Services $ 753,481 $ 745,003 $ 611,917 $ 611,917 $ ‐ 0% 10 Fire Services $ 1,612,981 $ 1,647,854 $ 1,577,836 $ 1,577,836 $ ‐ 0% 11 Development Review 6,526,792 $ $ 6,275,536 $ 6,585,331 $ 6,585,331 $ ‐ 0% 12 Parks & Recreation $ 1,867,801 $ 2,025,958 $ 2,068,693 $ 2,068,693 $ ‐ 0% 13 Business Licenses $ 522,674 $ 459,000 $ 468,000 $ 468,000 $ ‐ 0% 14 Cannabis Licenses $ 147,295 $ 171,000 $ 232,600 $ 232,600 $ ‐ 0% 15 Other Revenues $ 3,707,802 $ 2,910,765 $ 2,389,292 $ 2,319,154 $ (70,138) ‐3% 16 Subventions & Grants 1,429,375 $ $ 1,005,817 $ 682,279 $ 682,279 $ ‐ 0% 17 Storm Reimbursment ‐ ‐ 4,207,500 8,732,287 4,524,787 108% 18 Total $ 116,410,439 $ 114,884,089 $ 119,525,109 $ 126,826,114 $ 7,301,005 6% Budget Page 16
General Fund
policy acƟons. Despite higher interest rates driving up mortgage costs, home prices conƟnue to increase and new developments conƟnue to move forward. Staff increased this forecast based on conƟnued home price appreciaƟon and new inventory brought to market from ongoing development acƟvity.
Transient Occupancy Tax (TOT): This revenue stream benefited significantly from post‐COVID consumer preferences and spending levels. Staff noted in the Financial Plan that most of the excepƟonal growth experienced in the post‐COVID era was driven not by volumes but by average daily rates and did not expect that trend to conƟnue. On advice of consultants, staff forecast modest decrease in revenue next year as average daily rates conƟnue to normalize.
UƟlity User Tax (UUT): Historically, UUT revenue has been highly sensiƟve to the market cost of commodiƟes, including natural gas. Staff revised UUT forecast upwards based on the Municipal Cost Index.
Franchise Fees: Similar to UUT, staff forecast Franchise Fees to grow in line with the Municipal Cost Index.
Business Tax CerƟficates: Staff leŌ this forecast unchanged as increased delinquency rates drive uncertainty and present challenges to forecasƟng. Staff will conƟnue to monitor this revenue stream and enforce collecƟons as needed to ensure compliance.
Cannabis Tax: While the Financial Plan contemplated conƟnued growth, this revenue stream has held steady at current levels and is not predicted to increase further.
Fee & Other Revenue: A comprehensive user and regulatory fee study is near compleƟon and will be presented to Council aŌer adopƟon of the Supplemental Budget. To leave flexibility for Council to set user and regulatory fees at appropriate levels, staff have leŌ the user fee revenue streams unchanged from the Financial Plan. However, projecƟons in the “other revenue” category have been modified to account for SB1 Road Maintenance and RehabilitaƟon funds, which have decreased slightly and must be accurately budgeted for road maintenance.
Storm Reimbursement: Under the Federal and State declaraƟons of emergency for the January and March 2023 storms, the City is eligible to receive a maximum of 93.75% reimbursement of eligible storm related costs through the Federal Emergency Management Agency (FEMA) and California Office of Emergency Services (CalOES). Staff have been advised by our consultant, Ernst & Young (EY), that we should expect reimbursement of eligible s costs within 12 months of projects being submiƩed to FEMA for review and consideraƟon of reimbursement. As of the date of the supplemental budget draŌing, the City has spent $12.6 million on emergency storm repairs and submiƩed $17.2 million in requests for reimbursement (the amount submiƩed to FEMA includes esƟmated expenditures that have yet to be made for projects that are not yet complete).
Expenditures
In recent years the City has experienced considerable upwards pressure on expenditures due to the increased cost of living, which has driven other agencies to rapidly increase salaries and even greater increases in the cost to deliver capital projects. While departments submiƩed many budget requests that would benefit the community, the expenditures budget presented here reflects modest addiƟons only where needed to maintain service levels contemplated in the Financial Plan as staff carefully monitor expenditure growth in light of the potenƟal for deficits indicated by the General Fund’s long term forecast.
Budget Page 17
General Fund
Table 4a.2. General Fund Expenditures by Type
Table 4a.3. General Fund Expenditures by Department
Staffing: The majority of the FY 2023‐24 budget adjustments are due to changes in employee compensaƟon and benefits elecƟons since adopƟon of the financial plan driven by merit increases, employee turnover, and reclassificaƟons. This budget also reflects negoƟated equity and cost of living increasesfor the public safety departments’ bargaining groups; however, because these negoƟaƟons were agreed upon within the financial plan parameters there is no budget impact in FY 2024‐25.
The recommended Significant OperaƟng Budget Changes reflected here include the addiƟon of 7.50 FTE.
In many cases, these employees already work for the City and are either moving from part‐Ɵme to full‐ Ɵme or having their contracts extended. Expenditure offsets have also been idenƟfied for a majority of these posiƟons, and some are funded directly through fee programs.
Other OperaƟng Costs & Contract Services: Departments used the Supplemental Budget process to analyze expenditurestrends and idenƟfy savings and overages. Movement between Other OperaƟng Costs and Contract Services reflects departments’ careful evaluaƟon of year to date expenditures and changes in the cost of needed goods and services to ensure that funds are put to good use. Increases to the Financial Plan base budget were limited to those required to maintain exisƟng assets or fund price increases from service providers.
FY 2022‐23
Actuals
FY 2023‐24
Mid‐year
Budget
FY 2024‐25
Financial Plan
Budget
FY 2024‐25
Supplemental
Budget Change % Change
1 Staffing 64,984,921 $ $ 70,997,424 $ 72,729,444 $ 74,181,403 $ 1,451,959 2% 2 Contract Services 9,285,186 11,484,085 8,442,975 8,265,071 ‐ (177,904) 2% 3 Other Operating Costs 9,471,467 11,243,386 10,748,062 10,624,557 ‐ (123,505) 1% 4 Capital 27,055,941 29,727,994 27,269,275 27,199,138 (70,138) 0% 5 Debt Service 1,992,133 1,853,674 1,768,903 1,757,889 ‐ (11,014) 1% 6 Total 112,789,648 $ 125,306,563 $ 120,958,660 $ 122,028,058 $ 1,150,550 $ 1% FY 2022‐23
Actuals
FY 2023‐24
Mid‐year
Budget
FY 2024‐25
Financial Plan
Budget
FY 2024‐25
Supplemental
Budget Change % Change
1 Public Safety $ ‐
2 Police 21,207,958 $ $ 23,181,327 $ 22,607,072 $ 23,493,292 886,220 4% 3 Fire 15,083,884 $ $ 15,809,707 $ 15,480,510 $ 16,663,315 1,182,804 8% 4 Community Services Group ‐
5 CSG Administration 703,825 $ $ 850,725 $ 778,730 $ 658,925 ‐ (119,805) 15% 6 Community Development 7,380,642 8,991,151 8,510,146 8,710,502 200,356 2% 7 Parks and Rec 5,095,101 5,796,290 5,899,998 5,981,428 81,430 1% 8 Public Works 16,554,664 18,248,974 18,328,375 18,510,233 181,858 1% 9 Utilities 260,907 472,085 349,657 363,874 14,217 4% 10 Internal Services ‐
11 Administration $ 11,048,269 $ 12,354,947 $ 11,003,659 $ 11,130,422 126,763 1% 12 City Attorney 1,424,496 1,708,554 1,497,103 1,514,049 16,945 1% 13 Finance 2,481,796 2,769,515 2,804,255 2,948,031 143,775 5% 14 Human Resources 2,106,552 2,303,738 2,246,535 2,203,622 (42,913) ‐2% 15 Non‐Departmental 393,479 1,237,883 2,414,439 893,338 (1,521,101) ‐63% 16 Capital 27,055,941 29,727,994 27,269,275 27,199,138 (70,138) 0% 17 Debt Service 1,992,133 1,853,674 1,768,903 1,757,889 (11,014) ‐1% 18 Total $ 112,789,648 $ 125,306,563 $ 120,958,660 $ 122,028,058 $ 1,150,550 1% Budget Page 18
General Fund
Capital: The total allocaƟon to Capital changes only due to revisions to the SB1 revenue forecast, which is allocated enƟrely to Capital projects. Other changes to Capital Expenditures are detailed in the Capital Improvements Program update in SecƟon 7.
Debt Service: The City does not expect any new debt service costs in FY 2024‐25. Adjustments to the debt service costs shown here reflect changes to debt service schedules only.
Significant OperaƟng Budget Changes (SOBCs)
Staff carefully evaluated requests for addiƟonal General Fund appropriaƟons and directed departments to idenƟfy offsets and efficiencies in their operaƟng budgets wherever possible. In many cases, these recommendaƟons are for posiƟons that are currently staffed and funded out of exisƟng budgets, and staff’s recommendaƟon is to make these posiƟons and offsets permanent.
In one unique case, funding for two Finance SOBC recommendaƟons will come from a separate department. These recommendaƟons will add much needed administraƟve and technology support that will benefit the City as a whole. As such, the Community Services Group will fund these recommendaƟons by freezing a vacant posiƟon.
The recommended SOBCs have been included in all of the General Fund and Consolidated revenue and expenditure tables included in this document.
Table 4a.4. General Fund SOBCs
Department Summary of Request Timing Request Offsets Net 1 Admin Convert DEI Fellow contract positon to 1.00 FTE Administrative Specialist Ongoing 91,081 (91,081) ‐ 2 CDD Add 1.00 FTE Building Inspector and Vehicle Ongoing 165,708 (150,000) 15,708 3 CDD
Convert Stormwater Code Enforcement Officer
contract position to 1.00 FTE Stormwater Code
Enfocement Officer and Vehicle
Ongoing 174,271 ‐ 174,271 4 CDD Funding for CAPSLO's Hotel Voucher Program One‐time 45,000 ‐ 45,000 5 City Attorney
Convert Legal Assistant contract position to
1.00 FTE Legal Assistant Ongoing ‐ ‐ ‐ 6 Finance Add 0.50 FTE Administrative Assistant‐
Confidential Ongoing 35,863 ‐ (35,863) 7 Finance
Increase 0.50 FTE Supplemental Financial
Analyst (Oracle ERP) to 1.00 FTE Financial
Analyst
Ongoing 77,626 ‐ (77,626) 8 Fire
Add contract Fire Vehicle Mechanic through FY
2024‐25
One‐time 122,804 ‐ 122,804 9 Fire Increase 0.50 FTE Fire Inspector to 1.00 FTE Ongoing 32,380 32,380 10 Parks & Rec Public Art Fund operatingexpenses Ongoing 15,000 (15,000) ‐ 11 Police License Plate Reader maintenance cost
increase Ongoing 10,000 10,000 12 Police Animal Services contract cost increase Ongoing 84,894 ‐ 84,894 13 Public Works
Add 1.00 FTE Parks Maintenance
Superintendent, 1.00 FTE Parks Maintenance
Technician and transition two Supplemental
Parks Maintenance Aides to Limited Benefit
Temporary Parks Maintenance Aides
Ongoing 280,271 (280,271) ‐
14 Total $ 1,134,898 $ (649,841) $ 485,057
Budget Page 19
General Fund
Long Term Forecast
The long‐term forecast is an essenƟal planning tool for the City and its ongoing service delivery. While the City adopts a two‐year Financial Plan that must be balanced, the outer years of the forecast are presented to show the City’s financial condiƟon and availability of resources into the future. The forecast is updated every six months, which gives staff the opportunity to alert Council of looming imbalances and strategize appropriate acƟons to be taken. The forecast presented here projects a deficit in the outer years.
Key Takeaways
The forecast reflects that expenditures are growing more quickly than we currently expect revenues to grow. LeŌ unmiƟgated, this will lead to a deficit. Given this, staff is working to develop budget balancing strategies and approaches which will be reviewed with Council as part of development of the 2025‐27 Financial Plan.
Staff have begun an iniƟaƟve to idenƟfy and forecast expenditures that the City will be required to incur based on commitments it has made in the past. Specifically, staff have idenƟfied significant commitments from development agreements that will impact the City’s budget in the future. More generally, a growing populaƟon is expected to increase the cost to provide currentservice levels and adds pressure to the City’s finances.
Significant changes to the forecast compared to the FY 2023‐24 Mid‐Year forecast include:
CalPERS pension obligaƟons: The costs to meet the City’s pension obligaƟons are highly volaƟle and driven by uncontrollable market condiƟons. Pension obligaƟons conƟnue to pressure the City’s budget, with costs projected to increase by nearly $1million compared to esƟmates in the FY 2023‐24 Mid‐Year forecast.
Costs to operate a fiŌh fire staƟon: As called for in the Avila Ranch development agreement, the City expects to add and operate a fiŌh fire staƟon by July 2026. Staff have projected operaƟonal costsfor thisstaƟon, including staffing, equipment, and training, beginning in FY 2025‐26 and have made reasonable esƟmates of the offsets available from the development agreement and other grant sources. While there remain a broad range of possible costs associated with operaƟng this new fire staƟon, staff have modeled what we believe is the most likely outcome and expect to refine this esƟmate over Ɵme.
Increased sales tax revenue: The City has been fortunate to benefit from strong growth in sales tax, including both Bradley Burns and Local Revenue Measure G‐20. This growth has exceeded the projecƟons contemplated by the Financial Plan, leading us to increase the FY 2024‐25 budget based on current year performance and new businesses opening. We also increased out‐year growth expectaƟons based on statewide assumpƟons provided by our consultants.
Other material assumpƟons include:
ConƟnued economic growth: The City benefits from diversified revenue streams. However, many of these revenue streams rely on consumer spending and tourism and are therefore cyclical. This forecast does not contemplate a recession or slowdown in spending. Three percent cost of living adjustments: InflaƟon has led other agencies to increase compensaƟon drasƟcally over the last few years. As of the date this report was published, the Budget Page 20
General Fund
Consumer Price Index was increasing at 3.4% year over year. This forecast assumes we can aƩract and retain a talented workforce with three percent cost of living adjustments to salaries. Debt financing: Forecasted debt financing costs include current obligaƟons only. Should the General Fund issue addiƟonal debt, those debt service costs will reduce our capital budget. This could have a material impact on the City’s ability to build and maintain infrastructure. AddiƟonal DiscreƟonary Payments (ADPs) to CalPERS: We conƟnue to forecast $2m per year in ADPs. This amount was established with the Fiscal Health Response Plan in 2018 and has not changed to reflect our increased staffing costs. This means our progress in paying down our unfunded pension liabiliƟes is projected to slow.
Emergency Storm Reimbursement: The City has expended $12.6m to date in emergency storm expenditures. While we strive for the maximum reimbursement of 93.75% of all eligible costs, our assumpƟon of $8.7m in reimbursement in FY 2024‐25 is unchanged from mid‐year as tremendous uncertainty to the reimbursement amount remains.
Budget Page 21
General Fund
Table 4a.5. General Fund Long Term Forecast
Budget Page 22
General Fund
Table 4a.6. Detailed OperaƟng Expenditures
Budget Page 23
General Fund
Budget Page 24
General Fund
Budget Page 25
General Fund
Budget Page 26
General Fund
Budget Page 27
Special Revenue & Other Funds
Section 4b. Special Revenue and Other Funds
Community Facilities Districts
Avila Ranch CFD No. 2017‐1
A Mello‐Roos Community Facilities District was established and approved by City Council on October 24, 2017 (Resolution No 10844) pursuant to section 5.02.1 of the Avila Ranch Development Agreement. The CFD boundaries are identical to that of the Avila Ranch Development project and located at the northeast corner of Buckley Road and Vachell Lane. The Avila Ranch Project will include up to 720 dwelling units, 15,000 square feet of office and retail, 18 acres of parks, 53 acres of open space, riparian corridors and farmed agricultural land. The CFD was formed with purpose of funding services as well as facilities of the CFD. Services to be funded can include the maintenance and lighting of parks, parkways, streets, roads, and open space; flood and storm protection services; police & fire protection services; maintenance and operation of real property.
Facilities to be funded can include park, recreation, parkway, and open space facilities; construction and undergrounding of utilities (water, natural gas, telephone lines, electric, cable television); for the acquisition, improvement, or rehabilitation of real property.
Table 4b.1. Avila Ranch CFD No. 2017‐1 Budget
San Luis Ranch CFD No. 2019‐1
A Mello‐Roos Community Facilities District (CFD) was established and approved by City Council on April 16, 2019 (Ordinance No 1661) pursuant to section 5.02 of the San Luis Ranch Development Agreement. The boundaries of the CFD are identical to the San Luis Ranch Specific Plan and includes 131.4 acres approved for up to 580 dwelling units and commercial development, a 200‐room hotel, 100,000 square feet of office space, 150,000 square feet of retail space, 7.8 acres of parks/ open space, and 52.3 acresof farmed agriculture land. The purpose of the CFD is to fund major road improvements, potable and non‐potable water system improvements, drainage system improvements, wastewatersystem improvements,solid waste improvements, park and paseo improvements, open space improvements, and utilities.
Table 4b.2. San Luis Ranch Budget
FY 2022‐23
Actuals
FY 2023‐24
Mid‐year
Budget
FY 2024‐25
Financial Plan
Budget
FY 2024‐25
Supplemental
Budget Change % Change
1 Authorized Services $ 145,735 $ 226,274 $ 466,147 $ 466,147 $ ‐ 0% 2 Authorized Infrastructure 15,154 23,075 46,623 46,623 0% 3 Total $ 160,889 $ 249,349 $ 512,770 $ 512,770 $ ‐ 0% FY 2022‐23
Actuals
FY 2023‐24
Mid‐year
Budget
FY 2024‐25
Financial Plan
Budget
FY 2024‐25
Supplemental
Budget Change % Change
1 Debt Service $ 913,600 $ 929,700 $ 950,200 $ 950,200 $ ‐ 0% 2 Staffing 25,500 26,010 26,530 26,530 ‐ 0% 3 CFD Administration 7,350 7,718 8,103 8,103 ‐ 0% 3 Trustee Fees 2,200 2,200 2,200 2,200 ‐ 0% 4 Pay‐As‐You‐Go 118,488 335,247 322,850 322,850 ‐ 0% 5 Total $ 1,067,138 $ 1,300,875 $ 1,309,883 $ 1,309,883 $ ‐ 0% Budget Page 28
Special Revenue & Other Funds
Tourism Business Improvement District (TBID)
The Tourism Business Improvement District (TBID) assessment is set at 2% of the lodging industry’s gross receipts. The program annually aligns its operating budget with its anticipated revenues.
Table 4b.3. TBID Budget
Downtown Business Improvement District
The Downtown Business Improvement District assessment is collected annually with the Business Tax renewal from businesses located within the geographical boundary of the Downtown District. Business tax certificates are renewed at the beginning of each fiscal year based on prior calendar year gross receipts. The revenue is then remitted to Downtown SLO monthly via contract services.
Table 4b.4. Downtown Business Improvement District Budget Boysen Ranch Conservation Fund
Boysen Ranch consists of approximately 116 acres bounded by Los Osos Valley Road, Foothill Boulevard, and O’Connor Way. The City holds a series of conservation easements that protect approximately 25 acres of the Ranch to mitigate impacts to wetlands and waters caused by the nearby commercial development projects on Los Osos Valley Road. As part of the original easement agreement, Boysen Ranch’s owners provided the City with an endowment to fund required monitoring activities.
Table 4b.5. Boysen Ranch Conservation Fund Budget
FY 2022‐23
Actuals
FY 2023‐24
Mid‐year
Budget
FY 2024‐25
Financial Plan
Budget
FY 2024‐25
Supplemental
Budget Change % Change
1 Contract Services $ 1,638,367 $ 1,904,034 $ 1,745,144 $ 1,745,144 $ ‐ 0% 2 Other Operating Costs 81,586 89,303 89,100 89,100 ‐ 0% 3 Staffing 184,415 284,674 289,984 269,700 (20,284) ‐7% 4 Transfers 43,298 42,816 43,672 43,672 ‐ 0% 5 Total $ 1,947,666 $ 2,320,828 $ 2,167,900 $ 2,147,616 $ ‐ (20,284) 1% FY 2022‐23
Actuals
FY 2023‐24
Mid‐year
Budget
FY 2024‐25
Financial Plan
Budget
FY 2024‐25
Supplemental
Budget Change % Change
1 Contract Services 271,977 $ $ 275,400 $ 280,900 $ ‐ 280,900 $ 0% 2 Total 271,977 $ $ 275,400 $ 280,900 $ ‐ 280,900 $ 0% FY 2022‐23
Actuals
FY 2023‐24
Mid‐year
Budget
FY 2024‐25
Financial Plan
Budget
FY 2024‐25
Supplemental
Budget Change % Change
1 Contract Services 6,489 $ $ 11,771 $ 7,500 $ ‐ 7,500 $ 0% 2 Total 6,489 $ $ 11,771 $ 7,500 $ ‐ 7,500 $ 0% Budget Page 29
Special Revenue & Other Funds
Public Safety Equipment Fund
The Public Safety Equipment Fund (PSEF) was created with the 2019‐21 Financial Plan to help budget and forecast the replacement of Public Safety equipment that has expired or become damaged. The Fund had received an original seed amount with the 2019‐20 budget and, going forward, an annual allocation is made from the Local Revenue Measure.
Table 4b.6 Public Safety Equipment Fund Budget
Insurance Fund
The Insurance Fund serves to pay the City’s annual premiums for liability, workers’ compensation, special events, volunteer, and property insurance needed to protect the City and to manage fluctuations in claims‐ related expenses. The budget for the insurance fund has been supplemented over time with expendituresfrom the Office of the City Attorney and the Human Resources department, which continue to incur costs which could fall under the intended use of the Insurance Fund. Staff intend to revisit where these costs are incurred in future planning cycles.
Table 4b.7 Insurance Fund Budget
FY 2022‐23
Actuals
FY 2023‐24
Mid‐year
Budget
FY 2024‐25
Financial Plan
Budget
FY 2024‐25
Supplemental
Budget Change % Change
1 Other Operating Costs 442,726 $ $ 633,752 $ 403,560 $ 403,560 $ ‐ 0% 2 Total $ 442,726 $ 633,752 $ 403,560 $ 403,560 $ ‐ 0% FY 2022‐23
Actuals
FY 2023‐24
Mid‐year
Budget
FY 2024‐25
Financial Plan
Budget
FY 2024‐25
Supplemental
Budget Change % Change
1 Contract Services 2,844,913 $ $ 2,691,607 $ 2,610,281 $ ‐ 2,610,281 $ 0% 2 Other Operating Costs 2,865,566 3,038,866 3,058,578 ‐ 3,058,578 0% 3 Total 5,710,479 $ $ 5,730,473 $ 5,668,859 $ ‐ 5,668,859 $ 0% Budget Page 30
Water and Sewer Funds
Section 4c. Water and Sewer Enterprise Funds
Overview
The Utilities Department oversees two Enterprise Funds (Water and Sewer), an Agency Fund (Whale Rock), and the Solid Waste and Recycling program which is held in the General Fund. The Solid Waste and Recycling budget is funded by AB 939 and Franchise Fee funding, which are restricted to waste diversion activities. In addition to the Water and Sewer Funds, the Utilities Department also managesthe Whale Rock Fund, which is overseen by the Whale Rock Commission. The City’s share of operational expenses and capital project contributions for Whale Rock operations are budgeted through the Water Fund’s Source of Supply budget.
Table 4c.1 ‐ Utilities Department Programs
Fund Fund Type Programs Funded Notes
Water Fund Enterprise
Fund
Administration and Engineering
Source of Supply
Water Treatment
Water Distribution
Water Resources
Utility Billing
The City’s water operations are paid for by water
service rate revenues and cover all costs for
operations, maintenance, infrastructure
replacement, and debt service. Taxes, including
utility user taxes, do not support these services.
Sewer Fund Enterprise
Fund
Administration and Engineering
Wastewater Collection
Environmental Programs
Water Resource Recovery
Water Quality Lab
Utility Billing
The City’s sewer operations are paid for by
sewer service rate revenues and cover all costs
for operations, maintenance, infrastructure
replacement, and debt service. Taxes, including
utility user taxes, do not support these services.
Whale Rock
Fund Agency Fund Reservoir Operations The Whale Rock Fund is overseen by the WhaleRock Commission.
General
Fund (AB
939)
General Fund Solid Waste and Recycling
The Solid Waste program is paid for by AB 939
and Franchise fee funding. AB 939 funds may
only be used to pay for activities that divert
waste from landfills.
The following sections review revenues, expenditures, significant operating budget changes, and long‐ term financial position of these funds as they pertain to the 2024‐25 Budget Supplement.
Budget Page 31
Water and Sewer Funds
Revenue
Table 4c.2 – Water Fund Revenues
Table 4c.3– Sewer Fund Revenues
On June 6, 2023 Council adopted rate increases for the 2023‐25 Financial Plan (R‐11427 and R‐11428).
Relative to these adopted rate increases, revenues are on track with staff expectations outlined as part of the 2023‐25 Financial Plan and in the corresponding Comprehensive Water and Sewer Rate Studies.
Revenue Type 23‐24 Budget 24‐25Original
Budget
24‐25 Supplement
Budget Change % Change
Water Fund
1 43201‐Miscellaneous Penalties 118,000 $ $ 118,000 $ ‐ 118,000 $ 0% 2 44101‐Interest on Investment 50,000 $ $ 50,000 $ ‐ 50,000 $ 0% 3 44306‐Credit Collections 14,000 $ $ 14,000 $ ‐ 14,000 $ 0% 4 44310‐Miscellaneous Revenue $ 20,000 $ 20,000 $ ‐ 20,000 $ 0% 5 45204‐Prop 1B Revenue 580,000 $ ‐ $ $ 2,860,000 $2,860,000 6 45211‐Other State Grants 657,171 $ $ 657,171 $ ‐ 657,171 $ 0% 7 46102‐Development Review Fees 26,000 $ $ 26,000 $ ‐ 26,000 $ 0% 8 46701‐Sales to Cal Poly 1,106,029 $ $ 1,183,946 $ ‐ 1,183,946 $ 0% 9 46702‐Water Sales 17,716,575 $ $ 19,045,319 $ ‐ 19,045,319 $ 0% 10 46703‐Utilities Base Charges 6,243,398 $ $ 6,711,653 $ ‐ 6,711,653 $ 0% 11 46704‐Reclaimed Water Sales 1,080,097 $ $ 1,161,104 $ ‐ 1,161,104 $ 0% 12 46708‐Utilities Set‐up Fees 157,560 $ $ 60,000 $ ‐ 60,000 $ 0% 13 46709‐Other Utilities Charges 1,000 $ $ 1,000 $ ‐ 1,000 $ 0% 14 46712‐Low Income Subsidy (100,000) $ $ (100,000) $ ‐ (100,000) $ 0% 15 46713‐Cal Poly Capacity & Resilience 251,072 $ $ 263,433 $ ‐ 263,433 $ 0% 16 47201‐Impact Fees 3,235,397 $ $ 800,000 $ 800,000 0% 17 48002‐Long‐Term Debt Proceeds 750,360 $
Water Fund Total $ 31,906,660 $ 30,011,625 $ 32,871,625 $2,860,000 10% Revenue Type 23‐24 Budget 24‐25Original
Budget 24‐25 Revised Budget Change % Change
Sewer Fund
1 42105‐Industrial User Permits 85,000 $ $ 85,000 $ ‐ 85,000 $ 0% 2 43201‐Miscellaneous Penalties 118,000 $ $ 118,000 $ ‐ 118,000 $ 0% 3 44101‐Interest on Investment 50,000 $ $ 50,000 $ ‐ 50,000 $ 0% 4 44306‐Credit Collections 14,000 $ $ 14,000 $ ‐ 14,000 $ 0% 5 44310‐Miscellaneous Revenue 20,000 $ $ 20,000 $ ‐ 20,000 $ 0% 6 45211‐Other State Grants 1,500,380 $ ‐ $
7 46102‐Development Review Fees 26,000 $ $ 26,000 $ ‐ 26,000 $ 0% 8 46701‐Sales to Cal Poly 1,012,594 $ $ 1,007,838 $ ‐ 1,007,838 $ 0% 9 46703‐Utilities Base Charges 5,008,281 $ $ 5,208,612 $ ‐ 5,208,612 $ 0% 10 46705‐Sewer Service Charges 13,303,765 $ $ 13,835,916 $ ‐ 13,835,916 $ 0% 11 46708‐Utilities Set‐up Fees 60,000 $ $ 60,000 $ ‐ 60,000 $ 0% 12 46709‐Other Utilities Charges 1,000 $ $ 1,000 $ ‐ 1,000 $ 0% 13 46712‐Low Income Subsidy (100,000) $ $ (100,000) (100,000) $ ‐ $ 0% 14 46713‐Cal Poly Capacity & Resilience 472,534 $ $ 472,534 $ ‐ 472,534 $ 0% 15 47201‐Impact Fees 2,251,812 $ $ 600,000 $ 600,000 0% 15 48002‐Long‐Term Debt Proceeds 25,964,877 $ $ 15,000,000 $ ‐ 15,000,000 $ 0% 16 Sewer Fund Total $ 49,788,244 $ 36,398,900 $ ‐ 36,398,900 $ 0% Budget Page 32
Water and Sewer Funds
Table 4c.4: Utility Rates
Year Water Rate Increase Sewer Rate Increase
2023‐24 (Adopted) 8.5% 4%
2024‐25 (Adopted) 7.5% 4%
2025‐26 (Forecasted) 7.5% 4%
2026‐27 (Forecasted) 4.5% 4%
2027‐28 (Forecasted) 4.5% 3.5%
Staff have been able to offset any cost increases and unexpected expenditures through fiscally prudent project management, improved operations, and strategic deferrals of capital projects. As a result, the adopted rate increases are sufficient to support the costs of delivering water and sewerservicesin FY 2024‐
25. As seen recently, deferral of projects and cost escalations associated with new projects may result in inflationary costs in outer years. Staff are in the preliminary phases of exploring tax credits through the Inflation Reduction Act, which may offsetsome of these increased costs. At this time, forecasted water rate increases are expected to be sufficient to support the costs of sustainably delivering drinking water and maintaining associated infrastructure.
Staff are recommending one adjustment to FY 2024‐25 budgets for revenues. As of February 14, 2024, the City has entered into agreement with the State Water Resources Control Board for the Proposition 1 Groundwater Grant Program (Round 3, Implementation Phase). Council delegated authority to execute this grant on May 16, 2023. In total this grant will fund $6,607,850 in groundwater cleanup projects, helping the City to increase its available water supply while improving water supply resiliency. Grant funding will be realized between FY 2023‐24 and FY 2025‐26.
Staff are also anticipating substantial loan proceeds associated with the WRRF Upgrade (2091219) in FY 2024‐25. Similarly, staff are forecasting loan proceeds for Waterline Replacement: Santa Rosa – Stenner Creek Road to Highland (2001048). When establishing recommended 2023‐24 and 2024‐25 rate increases, the City’s rate consultant identified that both these projects would require loan financing.
Expenditures
Table 4c.5 – Water Fund Operating Expenditures
Budget Page 33
Water and Sewer Funds
Table 4c.6 – Sewer Fund Operating Expenditures
Staff continue to budget around extraordinary inflation in key cost categories, including electricity, chemicals, and construction costs. It should be noted that the figures above account SOBC impacts to the operating budget and do not include any impacts to capital. The display above includes updated expenditures and while chemical costs have somewhat stabilized, electricity costs and construction costs continue to be highly volatile. Staff had budgeted assuming a 35% rate increase in electricity through July 2024. However, staff were informed in January 2024 that the cumulative electric rate increase from January 2023 to July 2024 is now forecasted to be 63% for Community Choice Aggregation customers.
Likewise, capital projects continue to exceed available budgets.
Table 4c.7: Capital Project Cost Escalation
Staff have tried to offset these inflationary increases through fiscally prudent project management, improving operations, and strategic deferrals of capital projects. While it is hard to quantify some of these cost savings, staff have compiled some of these cost saving efforts for illustration.
Expenditure Category 22‐23 Actuals 23‐24 Budget 24‐25Original Budget
24‐25 Revised
Budget Change % Change
Sewer Fund
1 Debt Services 1,377,108 $ $ 1,382,346 $ 7,005,933 $ ‐ 7,005,933 $ 0.00% 2 General Government 2,573,783 $ $ 3,104,155 $ 3,569,778 $ ‐ 3,569,778 $ 0.00% 3 Operations $ 3,229,062 $ 3,949,234 $ 3,850,153 $ 4,019,638 $ 169,486 4.40% 4 Salaries and Benefits 4,966,420 $ $ 6,183,247 $ 6,564,115 $ 6,737,755 $ 244,966 3.73% 5 Sewer Fund Total 12,146,373 $ $ 14,618,982 $ 20,989,980 $ 21,333,105 $ 414,452 1.97% Project Original Estimate Current Cost
Estimate
% increase
Waterline Replacement: Chorro – Highland to
Meinecke 24‐inch Pipeline Replacement
$2,000,000 $2,720,000 36%
Johnson – Iris to Bishop Pipeline Replacement $3,300,000 $5,644,444 71% Islay, Henry, Sierra Way Wastewater Collections
System Improvements
$1,850,000 $4,050,000 119%
Sewer‐main Replacement: Morro, Mill, Santa
Rosa, and Chorro
$1,620,000 $2,720,000 68%
Budget Page 34
Water and Sewer Funds
Table 4c.8: Cost Savings
Staff are able to defer some of these projects to balance the short‐term budget, but many of these projects are critical to the long‐term delivery of water and sewerservices. These projects will need to be constructed in the future and will likely be more expensive to construct at a later date.
In addition to inflationary impacts and cost reduction efforts, staff are recommending significant operating budget changes related to the implementation of advanced metering infrastructure (AMI), additional staff to accommodate population growth and additional regulatory requirements, short‐term funding needs for storm‐related damages, and Council direction to perform a rate structure study.
Significant Operating Budget Changes
These recommendations also include the capital costs associated with providing vehicles to new employees as needed in order to reflect the fully burdened cost of the position.
Description Cost Savings Cost Reduction Category
Completion of Calle Joaquin Lift Station
underbudget
$1,800,000 One‐Time
Estimated savings from the Tesla Battery at the
Water Treatment Plant
$120,000 Annual Ongoing
Estimated cost savings through the WTP Energy
Efficiency Project
$150,000 Annual Ongoing
Estimated savings from reduced inflow and
infiltration from the lateral rebate program
$150,000 Annual Ongoing
Deferral of the Foothill Sewer Lift Station
Replacement
$2,000,000 Deferred
Deferral of the replacement of UV Bulb
Replacements for Wastewater Treatment
$10,000 Deferred
Deferral of the Airport Sewer Lift Station
Replacement
$800,000 Deferred
Deferral of the Sewer‐main Replacement:
Serrano, Bressi, Dana, and Higuera Pipeline
Replacement
$1,275,000 Deferred
Deferral of the WRRF and Wastewater
Collections Shop
$6,000,000 Deferred
Budget Page 35
Water and Sewer Funds
Table 4c.9: Significant Operating Budget Changes [Water fund] Table 4c.10: Significant Operating Budget Changes [Sewer fund] Long Term Strategy
Since adoption of the 2023‐25 Financial Plan, staff have balanced short term budgets as outlined in previous sections. To mitigate the ongoing expenses related to project deferrals and inflation staff have identified four main points of emphasis.
1. Pursue Grants: Over the last six years Utilities staff have obtained $20,849,989 in grants that have funded capital projects that would have otherwise needed to be funded by rate payers.
2. Improve Operations: Projects like the WTP Energy Efficiency, the WRRF Energy Efficiency Project, and the WTP Tesla Batter Pack all contribute to more efficient processes that reduce ongoing expenses.
3. Infrastructure Replacement Alternatives: Staff have identified innovative measures to control capital project costs, such as technologies for pipeline rehabilitations, analysis of pipeline conditions, utilizing reliability centered maintenance programs, and leveraging artificial intelligence (AI) in operating strategies One example of AI usage is the adjustment of wastewater collection system maintenance from aggregated data models that provide service recommendations centered around risk and real impacts that allows staff to focus limited resources most efficiently.
4. Water Sales: Staff continue to explore opportunities to sell surplus raw and recycled water.
Recommendation Timing Request Offsets Net
1 Add two contract Water Meter Technicians and
funding for integration between billing software and
Advanced Metering Infrastructure
Ongoing 87,904 ‐ 87,904 2 Add 1.00 FTE Engineer Ongoing 17,261 ‐ 17,261 3 Funding for Rate Structure Study One‐time 42,500 ‐ 42,500 4 Add 0.75 FTE Utility Billing Assistant Ongoing 18,127 ‐ 18,127 5 Funding for Nacimiento Pipeline Repairs One‐time 932,459 ‐ 932,459 6 Total $ ‐ 1,098,250 $ $ 1,098,250
Recommendation Timing Request Offsets Net
1 Add two contract Water Meter Technicians and
funding for integration between billing software and
Advanced Metering Infrastructure
Ongoing 87,904 ‐ 87,904 2 Add 1.00 FTE Engineer Ongoing 21,577 ‐ 21,577 3 Funding for rate structure study One‐time 42,500 ‐ 42,500 4 Add 0.75 FTE Utility Billing Assistant Ongoing 18,127 ‐ 18,127 5 Increased Funding for WRRF Electric Utility Costs Ongoing 125,000 ‐ 125,000 6 Add 1.00 FTE Wastewater Collection System Chief
Operator and Vehicle Ongoing 179,345 ‐ 179,345 7 Total $ 474,453 $ ‐ $ 474,453
Budget Page 36
Water and Sewer Funds
Table 4c.10: Water Fund Five Year Forecast
Revised with Supplement
Water Fund Five‐Year Forecast
(In Thousands)
(A)
Actual
2022‐23
(B)
Mid Year
Revised
2023‐24
(C)
Financial Plan
2024‐25
(D)
Supplement
2024‐25
(E)
Projected
2025‐26
(F)
Projected
2026‐27
(G)
Projected
2027‐28
(H)
Projected
2028‐29
1 Revenues2 46102‐Development Review Fees 37 $ $ 26 $ 26 $ 26 $ 26 $ 26 $ 26 $ 263 46701‐Sales to Cal Poly 1,195 $ $ 1,106 $ 1,184 $ 1,184 $ 1,340 $ 1,458 $ 1,558 $ 1,6994 46702‐Water Sales $ 15,260 $ 17,717 $ 19,045 $ 19,045 $ 20,757 $ 21,897 $ 22,977 $ 23,8965 46703‐Utilities Base Charges $ 5,910 $ 6,243 $ 6,712 $ 6,712 $ 7,215 $ 7,540 $ 7,879 $ 8,1946 46704‐Reclaimed Water Sales $ 1,042 $ 1,080 $ 1,161 $ 1,161 $ 1,248 $ 1,304 $ 1,363 $ 1,4187 46708‐Utilities Setup Fees 18 $ 0 $ 158 $ 60 $ 60 $ 60 $ 60 $ 60 $ 608 46709‐Other Utilities Charges (0) $ 1$ $ 1 $ 1 $ 1 $ 1 $ 1 $ 19 46711‐Water Distribution $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ 10 46712‐Low Income Subsidy (16) $ $ (100) $ (100) $ (100) $ (100) $ (100) $ (100) $ (100)11 46713‐Cal Poly Capacity & Resilience 233 $ $ 251 $ 263 $ 263 $ 288 $ 299 $ 310 $ 32112 Total Chargesfor Services 23,841 $ $ 26,482 $ 28,352 $ 28,352 $ 30,835 $ 32,485 $ 34,074 $ 35,51613 Total Other Revenue1 $ 1,770 $ 2,190 $ 859 $ 3,719 $ 11,370 $ 202 $ 202 $ 8,95214 Total Impact Fees 3,64 $ 9 $ 3,235 $ 800 $ 800 $ 800 $ 800 $ 800 $ 80015 Total Revenue 29,260 $ $ 31,907 $ 30,012 $ 32,872 $ 43,005 $ 33,487 $ 35,076 $ 45,2681617 Expenditures18 Total Salaries and Benefits 5,06 $ 9 $ 5,503 $ 5,761 $ 5,826 $ 5,998 $ 6,213 $ 6,421 $ 6,63719 Total Contract Services 9,835 $ $ 12,553 $ 12,721 $ 13,700 $ 12,985 $ 13,325 $ 13,720 $ 14,13120 Total Other Operating Expenditures 1,78 $ 2 $ 2,685 $ 2,753 $ 2,750 $ 2,864 $ 2,950 $ 3,039 $ 3,13021 Total Capital Asset Expenditures2 $ 2,653 $ 28,936 $ 1,395 $ 7,057 $ 12,758 $ 6,605 $ 5,880 $ 11,60822 Total Debt Service Expenditures 2,301 $ $ 1,870 $ 1,869 $ 1,869 $ 1,866 $ 2,391 $ 2,390 $ 2,38823 Total General Government Expenditures 2,31 $ 2 $ 2,826 $ 3,250 $ 3,250 $ 3,770 $ 3,808 $ 3,998 $ 4,19724 CalPERS Additional Discretionary Payment $ ‐ $ 679 $ 692 $ 692 $ 165 $ 165 $ 165 $ 16525 Total Expenditures 23,952 $ $ 55,052 $ 28,441 $ 35,145 $ 40,406 $ 35,456 $ 35,613 $ 42,2572627 Change in Financial Position28 Working Capital ‐ Beginning $ 34,725 $ 40,261 $ 17,115 $ 17,115 $ 14,842 $ 17,441 $ 15,473 $ 14,93629 Net Revenues (Revenues minus Expenditures) 5,30 $ 8 $ (23,146) $ 1,570 $ (2,273) $ 2,599 $ (1,969) $ (537) $ 3,01130 Working Capital ‐ Year End 40,261 $ $ 17,115 $ 18,686 $ 14,842 $ 17,441 $ 15,473 $ 14,936 $ 17,94731 Operating Reserve (20%) 4,26 $ 0 $ 5,088 $ 5,271 $ 5,479 $ 5,497 $ 5,737 $ 5,914 $ 6,09732 Rate Stabilization (10%) 2,237 $ $ 2,507 $ 2,694 $ 2,694 $ 2,931 $ 3,090 $ 3,241 $ 3,37933 Other Reserves 176 $ $ 176 $ 176 $ 176 $ 176 $ 176 $ 176 $ 17634 Unreserved Working Capital ‐ Year End 33,589 $ $ 9,346 $ 10,545 $ 6,493 $ 8,838 $ 6,470 $ 5,605 $ 8,295 1Other Revenue includes forecasted debt proceedsfor 2001048‐Waterline Replacement: Santa Rosa ‐ Stenner Creek Rd to Highland 30‐inch Pipeline in 2025‐26.2Capital Asset Expenditure includes carryover balances for multi‐year projects in 2023‐24.
Budget Page 37
Water and Sewer Funds
Table 4c.11: Sewer Fund Five Year Forecast
Revised with Supplement
Sewer Fund Five‐Year Forecast
(In Thousands)
(A)
Actual
2022‐23
(B)
Mid Year
Revised
2023‐24
(C)
Financial Plan
2024‐25
(D)
Supplement
2024‐25
(E)
Projected
2025‐26
(F)
Projected
2026‐27
(G)
Projected
2027‐28
(H)
Projected
2028‐29
1 Revenues2 46101‐Planning and Zoning Fee $ ‐ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $3 46102‐Development Review Fees 38 $ $ 26 $ 26 $ 26 $ 26 $ 26 $ 26 $ 264 46104‐ Sewer Wye Fees $ 8 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐5 46701‐ Sales to Cal Poly 1,106 $ $ 1,013 $ 1,008 $ 1,008 $ 991 $ 984 $ 960 $ 9906 46703‐ Utilities Base Charges $ 5,143 $ 5,008 $ 5,209 $ 5,209 $ 5,417 $ 5,634 $ 5,831 $ 5,9777 46705‐ Sewer Service Charges $ 13,345 $ 13,304 $ 13,836 $ 13,836 $ 14,503 $ 14,503 $ 14,503 $ 14,5038 46708 ‐ Utilities Setup Fees 187 $ $ 60 $ 60 $ 60 $ 60 $ 60 $ 60 $ 609 46709‐ Other Utilities Charges (25) $ $ 1 $ 1 $ 1 $ 1 $ 1 $ 1 $ 1 10 46711‐ Water Distribution $ ‐ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $11 46713‐ Cal Poly Capacity & Resilience 244 $ $ 473 $ 473 $ 473 $ 473 $ 473 $ 473 $ 47312 Total Charges for Services 20,071 $ $ 19,884 $ 20,612 $ 20,612 $ 20,612 $ 20,612 $ 20,612 $ 20,61213 Total Other Revenue1 $ 23,634 $ 27,652 $ 15,187 $ 15,187 $ 187 $ 187 $ 187 $ 18714 Total Impact Fees 1,981 $ $ 2,252 $ 600 $ 600 $ 600 $ 600 $ 600 $ 60015 Total Revenue 45,686 $ $ 49,788 $ 36,399 $ 36,399 $ 22,257 $ 23,130 $ 23,874 $ 24,4461617 Expenditures18 Total Salaries and Benefits 4,966 $ $ 5,491 $ 5,782 $ 5,946 $ 6,124 $ 6,340 $ 6,553 $ 6,77319 Total Contract Services 1,785 $ $ 2,478 $ 2,356 $ 2,522 $ 2,543 $ 2,614 $ 2,688 $ 2,76820 Total Other Operating Expenditures 1,444 $ $ 1,471 $ 1,494 $ 1,497 $ 1,552 $ 1,599 $ 1,647 $ 1,69621 Total Capital Asset Expenditures2 $ 31,789 $ 49,145 $ 4,690 $ 6,890 $ 10,398 $ 5,583 $ 7,241 $ 4,23722 Total Debt Service Expenditures $ 1,376 $ 1,382 $ 7,006 $ 7,006 $ 7,099 $ 7,090 $ 7,088 $ 7,08723 Total General Government Expenditures 2,575 $ $ 3,104 $ 3,570 $ 3,570 $ 4,146 $ 4,202 $ 4,412 $ 4,63124 CalPERS Additional Discretionary Payment $ ‐ $ 692 $ 721 $ 721 $ 169 $ 169 $ 169 $ 16925 Total Expenditures 43,935 $ $ 63,764 $ 25,618 $ 28,152 $ 32,032 $ 27,598 $ 29,797 $ 27,3622627 Change in Financial Position28 Working Capital ‐ Beginning $ 1,751 $ 49,347 $ 35,371 $ 35,371 $ 43,619 $ 33,844 $ 29,376 $ 23,45229 Net Revenues (Revenues minus Expenditures) $ 49,526 $ (13,975) $ 10,780 $ 8,247 $ (9,775) $ (4,468) $ (5,924) $ (2,915)30 Working Capital ‐ Year End $ 2,429 $ 35,371 $ 46,152 $ 43,619 $ 33,844 $ 29,376 $ 23,452 $ 20,53731 Operating Reserve (20%) 980 $ $ 2,785 $ 4,042 $ 4,108 $ 4,293 $ 4,369 $ 4,477 $ 4,59132 Rate Stabilization (10%) 180 $ $ 966 $ 1,003 $ 1,003 $ 1,046 $ 1,089 $ 1,126 $ 1,15533 SRF Loan Reserve Amount 2,953 $ $ 5,907 $ 5,907 $ 5,907 $ 5,907 $ 5,907 $ 5,907 $ 5,90734 115 Pension Trust Fund 180 $ $ 180 $ 180 $ 180 $ 180 $ 180 $ 180 $ 18035 Unreserved Working Capital ‐ Year End 42,983 $ $ 25,533 $ 35,020 $ 32,421 $ 22,419 $ 17,831 $ 11,761 $ 8,704 1Other Revenue includes forecasted debt proceeds for 2091219‐WRRF Upgrade in 2023‐24 and 2024‐25.2Capital Asset Expenditure includes carryover balancesfor multi‐year projects in 2023‐24.
Budget Page 38
Transit Fund
Section 4d. Transit Fund
Overview
SLO Transit is the local fixed‐route public transit operation for the City of San Luis Obispo. Ridership demographics reflect a broad cross section of the community, seniors, persons with disabilities, Indigent, K‐12 and University Students, Commuters and Visitors. Trips are routinely taken to access educational, medical, employment, commercial and social opportunities throughout the service area.
Transit services play a vital role, not only as a “safety net” for the public transportation dependent population, but also addresses climate change issues associated with greenhouse gases.
Revenue
Bus fare revenue is tracking slightly low for FY 2024‐25 and has been adjusted to reflect actuals through the first three quarters. Bus fare is, however, expected to increase in FY 2024‐25 as services continue to be restored and as pass programs are expanded, as recommended by the recently completed Transit Innovation Study. In April 2024, Council approved a new three‐year agreement with Cal Poly for transit services at the same annual amount of $750,000, which is reflected in the FY 2024‐25 Supplemental Budget.
The Federal Revenue budget increases significantly in FY 2024‐25 due to a federal grantsubmitted in April 2024 to fund the replacement of diesel‐powered buses with zero‐emission models and to fund expansion buses needed to implement service enhancements identified as the highest priority recommendation of the Transit Innovation Study. Federal Revenue also includesthe $12.1 million in American Rescue Plan Act (ARPA) operating assistance funding programmed in FY 2022‐23 through FY 2024‐25. Staff continues to draw down on the funds in accordance with federal requirements. Any remaining funds will carry over for use in FY 2025‐26.
State Revenue increases in FY 2024‐25 because of grants received through various state programs for operational equipment like auto‐vehicle locator system and on‐bus camera system.
Expenditures
Staffing costs were decreased at Mid‐Year for FY 2023‐24 and beyond due to allocation of existing positions for the Mobility Services Division implementation. Overall, non‐staffing costs decrease slightly between FY2023‐24 and FY2024‐25. Purchased Transportation and Maintenance are expected to increase in FY2024‐25 due to a negotiated term extension for the City’s transit operations and maintenance services contract. These increases are offset by a reduction in Other Contract Services as part of an operating true‐up.
Transit Fund Revenue
2022‐23
Actual
23‐24
Budget
24‐25
Original
Budget
24‐25
Revised
Budget
Change % Change
1 Federal $4,083,165 $7,571,830 $7,675,985 $12,469,861 $4,793,876 62.45% 2 Local (Bus Fare) $806,521 $990,000 $1,000,000 $976,000 ($24,000) ‐2.40% 3 Other Revenue/Interest Revenue $446,998 $13,579 $13,851 $0 ($13,851) ‐100.00% 4 State $379,078 $3,179,564 $3,274,689 $3,613,325 $338,636 10.34% 5 Total $5,715,762 $11,754,973 $11,964,525 $17,059,186 $5,094,661 42.58% FY 2023‐25
Budget Page 39
Transit Fund
Significant Operating Budget Changes
Staff is not recommending any changes at this time.
Capital
The Transit Fund includes several new capital projects based on recently approved and/or applied for grant funds. Projects include replacement of existing on‐bus camera ($750,000) and auto vehicle locator systems($130,000) that were identified as high priority recommendationsin the Transit Innovation Study.
Grants to replace diesel‐powered buses with zero‐emission models and the associated charging infrastructure ($6.9 million) are also included in the forecast for FY 2024‐25.
Budget Page 40
Transit Fund
Transit Fund – Five‐Year Forecast
Budget Page 41
Parking Fund
Section 4e. Parking Fund
Overview
The Parking Services program implements the Access and Parking Management Plan and operates and maintains the City’s parking lots, on‐street metered spaces, parking structures, residential permit parking districts and timed parking areas throughout the City with focus on the downtown area and residential neighborhoods. Parking, Active Transportation, Transit, Curb Management (access) and traffic circulation are interrelated, and the Parking Services program plays an important role in the successful operations of the City’s transportation systems. The Parking Services Program works with stakeholders including businesses, residents, other government agencies, and visitors to meet their diverse parking and access needs. The Program promotes services through direct education, community outreach, engineering, and enforcement efforts that strive to balance the high demands by providing a variety of transportation and parking options.
Revenue
In July 2023, the Parking program implemented three significant changes to its operations including increasing of rates on‐street and in the structures, elimination of first hour free in all structures, and implementation of a gateless operation for the 842 Palm Street parking structure. In November 2023, Council considered and approved further changes to the parking structures in response to the community’s request for immediate relief from the impacts of the rate changes that went into effect at the beginning of the fiscal year. The approved changes included reinstatement of the first hour free and free parking on Sundays in the structures, and free parking during the annual holiday parade. The free first hour and free Sunday parking was approved through FY 2024‐25. During the same meeting in November 2023, Council authorized staff to issue a request for proposals and retain a consultant to prepare a comprehensive parking rate study to further evaluate rate options and recommend operational changes to improve the user experience.
On May 14, 2024, Council considered the findings from the Parking Rate Study which analyzed potential changes to on‐street, off‐street, and permit rates to address community concerns while maintaining a fiscally sustainable parking fund. Council approved financial model package Option B presented in the rate study (reduction of on‐street rates, reduction of structure rates including the daily max, and elimination of the free first hour and free Sunday parking programs in the structures). Council also approved a reduction in structure permit rates and a reduction in structure validation rates. The FY 2024‐25 budget has been updated to reflect the Option B revenue projections as approved by Council. Staff will monitor the impacts of the approved changes and update revenue forecasts as part of future financial planning and budget reporting efforts. These combined actions result in an approximately $420,000 decrease in total revenue for FY 2024‐25.
Budget Page 42
Parking Fund
Table 4e.1 Revenue
Expenditures
Parking program staffing costs for FY 2023‐24 and future years were increased with the FY 2023‐24 Mid‐ Year Budget Review to correct the allocation of new and existing positions as part of the Mobility Services Division reorganization implementation. Parking realized some savings in staffing costs with the Parking Program Manager vacancy from November 2023 through March 2024 and these savings were used to partially fund a contract Communications Coordinator position to lead Mobility Services Division’s communication efforts.
Parking hassignificantly increased communication and marketing effortsthisfiscal year in response to the community’s concerns about parking rates. These increased efforts resulted in overspending against the Advertising and Public Outreach, as well as Print and Reproduction line items. Parking has also been challenged by unexpected maintenance needs for the public facing EV charging stations, on‐street pay stations, and parking structure equipment. The program is requesting increased funding in FY 2024‐25 and beyond for future unanticipated maintenance needs.
Table 4e.2 Expenditures
Significant Operating Budget Changes
Staff recommends three SOBCs for the Parking Fund as detailed below. The revised budget forecast for the Parking Fund reflects revenues that are sufficient to cover operating costs and debt service, including the recommended budget changes below, without significantly impacting working capital.
Parking Fund Revenue
2022‐23
Actual
23‐24
Budget
24‐25
Original
Budget
24‐25
Revised
Budget
Change % Change
1 Parking Meters 2,574,431 $ $ 4,876,000 $ 4,876,000 $ 4,312,367 $ ‐ (563,633) 11.56% 2 Parking Structures 1,224,458 $ $ 2,316,100 $ 3,388,400 $ 2,860,504 $ ‐ (527,896) 15.58% 3 Parking Fines 1,369,398 $ $ 1,050,010 $ 852,100 $ 1,252,200 $ 400,100 46.95% 4 Federal Stimulus Grants 700,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ 5 Long Term Parking 700,873 $ $ 695,300 $ 766,300 $ 901,906 $ 135,606 17.70% 6 Total Other Revenue 1,388,031 $ $ 763,584 $ 529,824 $ 664,884 $ 135,060 25.49% 7 Debt Proceeds $ ‐ $ 47,000,000 $ ‐ $ ‐ $ ‐ ‐ 8 Total $ 7,957,191 $ 56,700,994 $ 10,412,624 $ 9,991,861 $ (420,763) ‐4.04% FY 2023‐25
Budget Page 43
Parking Fund
Table 4e.3 SOBC Recommendations
Recommendation Current Amount
Budgeted
Additional Amount
Recommended New Total
1. Credit Card Merchant Fees Increase $215,870 $304,130 $520,000
2. Technology Roadmap $0 $60,000 $60,000
3. Mobility Services Account True‐Ups –
Data Processing and Maintenance $0 $170,200 $170,200
Total $215,870 $534,330 $750,200
1. Credit Card Merchant Fees Increase
With the Mid‐Year Budget Review, the budget for credit card merchant fees was increased as a one‐time adjustment for FY 2023‐24 from $205,590 to $390,590 to account for continued and significant digital payment adoption. Through the first eight months of FY 2024, credit card merchant fees are averaging $45,170 per month with a projected year‐end of $542,000. Credit card fees are trending down slightly but will likely end at or around this projected year‐end amount.
Credit card paymentsrepresent over 90 percent ofrevenue collected at the pay stations and at the parking meters. There have also been over 200,000 mobile application (app) transactions (which are all credit card‐based) in the first eight months of FY 2024. Credit card payment adoption will likely stay at this level or increase depending on future changes to operations. Parking’s operating budget needs to be adjusted accordingly to accurately reflect these new transactional norms.
This SOBC requests increasing the credit card merchant fee budget to $520,000 annually, on an ongoing basis.
2. Technology Roadmap
This request is to increase the Parking Program’s Other Contract Services budget by $60,000 in FY 2024‐ 25 to work with a consultant on a Technology Road Map. The Technology Road Map will assist the City in troubleshooting existing technology issues and adjust to fully implement recommendations from the rate study.
3. Mobility Services Account True‐Ups – Data Processing and Maintenance After analyzing current and past year expenditure trends and current contracts, staff is recommending reallocated budget into the most appropriate accounts, and providing the ongoing addition of $80,200 to Data Processing (mobile app fees and services) and $90,000 to Maintenance (general services, repair services, equipment support) to fund budget gaps. This ongoing transfer of $170,200 will cover these expenses and allow the Parking Program to continue to operate at current service levels.
Budget Page 44
Parking Fund
Capital
In November 2023, staff also presented to Council a forecast that de‐programmed future structure maintenance capital projects to help offset the impacts of the parking relief changes being considered.
Council did not take action on the capital project changes at the November meeting, so the reprogramming of funds is included in the Supplemental Budget. Beginning in FY 2024‐25, capital project funding is being decreased anywhere from $500,000 to $1 million annually. Staff may return at a future date to present updated funding needs for structure maintenance projects once the parking rate study recommendations are implemented and impacts to the fund can be determined.
Budget Page 45
Parking Fund
Parking Fund – Five‐Year Forecast
Budget Page 46
Local Revenue Measure
SecƟon 5. Local Revenue Measure
The Local Revenue Measure (LRM) is a 1.5 percent local sales tax approved by City voters in November 2020 that went into effect on April 1, 2021. It replaced the previous .5 percent local sales tax approved by City voters in November 2014. The revenue provided by this measure has become instrumental in maintaining public infrastructure and delivering criƟcal operaƟng programs to address emerging needs idenƟfied by the community.
Local Revenue Measure Ballot Language (G‐20)
“To protect City of San Luis Obispo’ s financial stability; maintain fire/community safety, health emergency/disaster preparedness; protect creeks from pollution; address homelessness; keep public areas clean/ safe; retain local businesses; maintain youth/senior services, streets, open space/natural areas, and other general services, by extending voter‐ approved funding at a 1.5¢ rate, providing approximately $21,600,000 annually until ended by voters; requiring audits/ all funds used locally” Table 5.1. Budget by Priority
The table above represents Local Revenue Measure contribuƟons to each priority. These prioriƟes also receive funding from other sources including the General Fund and certain enterprise funds.
Changes from Financial Plan
The priority allocaƟons above reflect the community’s feedback from development of the 2023‐25 Financial Plan. Changes to recommended operaƟng budget allocaƟons since plan development reflect typical year to year changes in salaries and benefits and employee turnover. Changes to Capital Improvement Program (CIP) budget allocaƟons are based on a true‐up of programming to a realisƟc level based on available financial and staff resources.
Detailed changes to budget allocaƟons are listed in the tables below.
Priority
FY 2024‐25
Budget % of Total
Street Maintenance and Transportation $9,150,627 29%
Community Safety and Emergency Preparedness $6,616,890 21% Youth/Senior Services and Recreation Facilities $5,287,099 17% Other Services and Projects $3,342,390 10%
Safe and Clean Public Areas $1,889,662 6%
Creek and Flood Protection $1,718,127 5%
Open Space/Natural Areas Preservation and Maintenance $1,555,889 5% Protect Financial Stability $1,186,330 4%
Address Homelessness $907,987 3%
Economic Development and Business Retention $200,000 1% Total $ 31,855,000
Budget Page 47
Local Revenue Measure
Table 5.2. CIP Changes from Financial Plan
Note: NegaƟve numbers in the “Supplemental Budget” column below represent re‐allocaƟons of prior year budget. This happens either when projects can be delivered under budget or when staff have made the assessment that a project will not move forward to construcƟon in the next fiscal year and those resources are beƩer allocated elsewhere.
Budget Page 48
Local Revenue Measure
Budget Page 49
Local Revenue Measure
Budget Page 50
Local Revenue Measure
Budget Page 51
Debt Service
SecƟon 6. Debt Service
Debt financing plays an important role in helping the City build and maintain its infrastructure without diverƟng current revenues to pay for future projects. This allows community members to benefit from these projects now and allows for future benefits to be paid for by future revenues.
Staff carefully evaluate debt financing proposals to prudently manage the City’s debt burden and ensure that costs and benefits are aligned with debt paydown schedules. Debt service costs listed below include both interest and principal payments on the City’s outstanding debt balances expected at the end of FY 2023‐24.
Table 6.1. Debt Service by Fund
Debt Issue by Fund Outstanding Balance Debt Service Cost Debt Service Fund
2012 Lease revenue refunding bonds $2,110,000 $393,100
2014 Lease Revenue bonds $6,085,000 $422,731
2018 Lease revenue refunding bonds $8,257,431 $942,058
$16,452,431 $1,757,889
Water Fund
2018 Lease revenue refunding bonds $239,529 $28,805
2018 Water Revenue Refunding bonds $7,365,000 $875,250
2020 CIEDB State Loan (Ibank) $11,975,405 $966,337
$19,579,934 $1,870,392
Parking Fund
2018 Lease revenue refunding bonds $3,845,063 $411,941
2001 CIEDB State Loan $2,857,619 $462,392
2023 Lease Revenue Bond $45,780,000 $2,817,000
2023 Interfund loan $4,845,000 $135,989
$57,327,682 $3,827,322
Sewer Fund
2018 Lease revenue refunding bonds $543,742 $31,837
2009 CIEDB State Loan $5,971,321 $549,999
2014 US Bank Installment Sale Agreement $2,883,966 $616,939 2020 SRF Loan - WRRF Upgrade $136,000,000 $5,807,159
$145,399,029 $7,005,933
Total All Funds $238,759,076 $14,461,536
Budget Page 52
1 Capital Improvement Plan (CIP)
Fiscal Year 2024‐25
Purpose of CIP
The Capital Improvement Program (CIP) enables the City to plan, schedule, and finance capital projects to ensure cost effectiveness and conformance with established plans and policies. The City’s budget process guides the capital priorities through community input, Council goal setting, Local Revenue Measure priorities, and the biennially adopted Major City Goal work programs.
Through its adopted CIP, the City meets community needs by providing the infrastructure required for economic vitality, neighborhood wellness, housing, transportation, sustainability, active and passive recreation, public safety, cleanliness, and other basic amenities.
The City systematically plans, schedules, and finances capital projects to ensure cost‐effectiveness and compliance with established policies. These policies, primarily outlined in the City’s fiscal policies, govern the development and management of the Capital Improvement Plan (CIP). All construction projects and equipment expenditures of $25,000 or more are included in the CIP.
During the 2023‐2025 financial planning process, the City set specific goals, resulting in a budget of $183 million over the two‐year plan. One year into this plan, the Supplemental Budget recommends a CIP True‐ Up. The recommendations included in the True‐Up are based on the current status of projects, increased project costs, and the staff resources required to deliver the planned projects.
Major Completed and Ongoing Projects
Major work efforts of the program have been made in the first year of the Financial Plan including the groundbreaking of the Cultural Arts District Parking Structure, street reconstruction and resurfacing, completion of emergency storm response projects, and significant progress on the Prado Bridge Widening and Prado Interchange Projects. In the first year of the Financial Plan, staff was able to complete 23 projects and bring 17 projects into construction.
Prado Road Interchange: The Prado Road Interchange Project in San Luis Obispo is a legacy Capital Improvement Project (CIP) that plays a crucial role in the City's infrastructure development. This project will construct a bridge over US 101, connecting Prado Road to Dalidio Drive and establishing a continuous transportation link between S. Higuera Street and Madonna Road. The project aligns with major City goals such as Housing and Homelessness, Climate Action, Open Space, and Sustainable Transportation, and is identified in the General Plan. Currently, the project is transitioning from the Project Approval and Environmental Document (PA/ED) phase to the Plans, Specifications, and Estimates (PS&E) phase. During a recent Council Meeting on September 5, 2023, staff presented updated project cost estimates based on its progress, projecting a construction cost of $106 million. This estimate included a 5% escalation rate, Budget Page 53
2 amounting to $10 million, factored into the total construction cost. Additionally, staff anticipates a total of $20 million in soft costs such as construction management and design, for a total project cost of $126 million. Asthe project progressesthrough the PS&E phase, the estimated cost will be refined and adjusted based on value analysis recommendations, ensuring alignment with the project's objectives and financial considerations.
Cultural Arts District Parking Structure: After two decades of planning, work has commenced on the Cultural Arts District Parking Structure. The Cultural Arts District Parking Structure is necessary to address longstanding needs within the downtown. As the City envisions the realization of future surrounding projects like the SLOREP Theater and housing projects, coupled with the proposed liner building that is anticipated to provide affordable housing on site, this new structure serves as a pivotal enabler, ensuring adequate parking provisionsto accommodate both existing and forthcoming developments. By adding 397 parking spaces to the downtown inventory, this project aligns strategically with the City's aspirations for increased density in its urban landscape. This structure, poised to more than double the availability of public electric vehicle charging stations, also positions the City as a champion of sustainability, actively supporting greener transportation alternatives and amplifying its commitment to a forward‐looking and accessible urban environment. The project is currently in the initial phase of construction, and the shoring wall is close to completion. The parking structure is expected to be completed and operational by January 2026.
North Chorro Greenway: In mid‐2023, the City started construction on the North Chorro Neighborhood Greenway project. This project prioritizes bicycle and pedestrian travel between the Foothill Boulevard and North Chorro neighborhoods to downtown SLO.
The Greenway project includes construction of over 40 accessible curb ramps, separated bicycle lanes, safety lighting along the route, public art, and lighting at the Chorro/US 101 underpass, as well as landscaping along the corridor with 60 new street trees and improved stormwater management features.
This greenway makes traveling by bike or on foot a more convenient and low‐stress option, in addition to providing safe connections to schools and enhancing the overall quality of life for residents.
The project is nearly finished, with paving now completed along the entire greenway. Remaining items to be completed include striping,signage, and installation of the public art at the Chorro/Hwy 101 underpass, including painting of the underpass and columns, and fence installation. The project is anticipated to be completed in the summer of 2024. The Public Art Installation CIP account has been identified as a funding source for the public art component of this project.
Storm Response Projects: Staff’s swift response to the 2023 storm events led to the successful completion of crucial storm projects throughout the city. The largest storm response project was the San Luis Drive Retaining Wall, constructed adjacent to the high school. Several portions of San Luis Obispo creek were also damaged, resulting in the construction of a soil nail wall near the intersection of Pismo and Johnson Streets, as well as debris removal projects under the Marsh Street Bridge and between Prado and Los Osos Valley Roads. A portion of Prefumo Creek that experienced a major flooding event was also cleared to remove debris and minimize future flooding risk. Several areas along Old Garden Creek were also damaged, including several portions of a retaining wall. These areas were swiftly repaired, often during rain events. The proactive approach to emergency situations demonstrates the City’s commitment to ensuring the safety and resilience of our infrastructure.
Budget Page 54
3 Road Resurfacing and Reconstruction: In June 2022, the City Council received an update on the City’s Pavement Management Plan. It was noted that in order to achieve Council’s goals from the 2009 Pavement Management Plan, more emphasis must be placed on Arterials, Collectors, and Downtown pavement maintenance. At the time of the update, arterials, on average, had a lower Pavement Condition Index (“PCI”) than collector and local streets within the City. The report also mentioned that to keep up with the increasing cost to perform pavement maintenance and keep the road system in good condition, the City would need to spend approximately double the prior estimated budget for arterial paving projects.
Proactively addressing road maintenance while the PCI is still high can prevent minor issues from escalating into major structural failures, which are significantly more expensive and time‐consuming to repair. Moreover, well‐maintained roads enhance safety, reduce vehicle operating costs, and minimize disruptions for road users. Therefore, investing in timely road maintenance preserves the infrastructure's integrity and extends its lifespan, ultimately benefiting the economy and public welfare.
The City is concluding the 2023 Arterials Project and is preparing to bid on the 2024 Sealing Project, both of which align with the City’s Pavement Management Plan. These projects benefit from SB1 funding, a crucial financial resource provided by the State of California. Senate Bill 1 (SB1), also known as the Road Repair and Accountability Act of 2017, generates revenue through increased fuel taxes and vehicle registration fees. This funding is specifically allocated for the maintenance and improvement of roadways, ensuring sustainable infrastructure development across the state. By leveraging SB1 funds, the City can effectively maintain and enhance its road network, addressing critical resurfacing and reconstruction needs in a fiscally responsible manner. This strategic use of state resources supports the City's long‐term goals for transportation infrastructure and aligns with broader state initiatives to improve road safety and reliability.
CIP Challenges
With the passage of Measure G in 2020, funding for Capital Improvement Plan (CIP) projects has significantly increased. Despite this, the CIP Engineering program continues to face challenges due to economic conditions affecting resource availability for capital projects. Cost escalation and supply chain delays have hindered the City's ability to deliver capital projects within budget and on schedule.
Additionally, the City has focused CIP resources on designing and constructing emergency storm response projects necessitated by severe winter storms and rainfall, which have significantly impacted its infrastructure. Compounding these challenges is the discrepancy between the volume of projects that remain on the CIP list and the number of available project managers and inspectors. This imbalance further strains the City's capacity to manage and complete its extensive list of infrastructure projects efficiently.
CIP True‐up
In evaluating escalating construction costs and the current workload of the CIP Engineering Team, staff has adopted a strategic approach to allocate resources effectively. With a total of 132 Projects on the current CIP list, it has become imperative to prioritize initiatives that are advancing towards construction or have a heightened demand for funding within the current Financial Plan. This approach is not about deferring projects, but rather about focusing staff and financial resources on those projects that can Budget Page 55
4 realistically be completed or significant progress made in FY 2024‐25. By concentrating on projects that are nearing the finish line, the City can optimize resources and ensure that critical milestones are met in a timely manner and that projects are fully funded when they are ready to construct. This streamlined strategy is essential for maintaining the team's productivity and delivering impactful outcomes across the CIP portfolio.
True‐Up Process:
Through the true‐up process, CIP Engineering, Transportation, and Utilities staff worked to identify initial solutions to address escalating construction costs within the current budget framework. These solutions were then communicated by the CIP Administrative Manager to the CIP Review Committee, initiating a round of review and feedback. Following this, staff conducted a comprehensive internal review and comment period, including dedicated time for staff to meet with the CIP Administrative Manager to fine‐ tune recommendations. The final recommendations were then presented back to the CIP Review Committee, incorporating valuable input and suggestions. The CIP Administrative Manager made final adjustments in close coordination with the Public Works Director based on the committee's input.
True‐Up Recommendation:
Funding Needs
The parameters established for the CIP true‐up focus on projects slated to commence construction before July 2025 that could require additional funding. This includes taking a deeper look at projects outside this deliverable timeframe due to the existing construction schedule. To meet these funding needs, fundsfrom existing accounts or the incoming FY 2024‐25 budget were recommended for allocation. The recent assessment by the CIP Review Committee identified 5 new assets and 29 projects set for construction before July 2025 that require a total additional $16,454,163 for design, construction, and/or procurement support. Tables 7.1 and 7.2 below identify all projects moving toward construction and the additional funding that would be required to move the project forward, should Council wish to complete the project within the current financial plan.
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5 Table 7.1. Supplemental Budget Request By Fund:
Supplemental Fund Project Account Budget Request
CIP Completed Projects Request $150,000.00
North Chorro Neighborhood Greenway $150,000.00
General Capital Outlay Request $861,565.04
Mission Plaza Enhancements $261,565.04
New Fleet: Utilities Safety Manager $25,000.00
Remodel City Hall's lower‐level Finance/IT Office area $575,000.00 Info Tech Repl Fund Request $175,000.00
Remodel City Hall's lower‐level Finance/IT Office area $175,000.00 Local Revenue Measure Request $6,522,598.18
Building Electrification PG&E SST Program $50,000.00
Emergency Storm Response Projects $2,100,000.00
Mission Plaza Enhancements $1,136,598.18
New Fleet: Fire Station 5 Apparatus (Debt Finance Yr 1) $150,000.00 New Fleet: Parks and Rec Ranger Truck, F150 Lightning (long range) $81,000.00 North Chorro Neighborhood Greenway $225,000.00
Righetti ‐ Community Park (phase 1) $750,000.00
Safety Center/1106 Walnut $750,000.00
Street Reconstruction & Resurfacing ‐ Sealing Project $1,060,000.00 Street Reconstruction & Resurfacing (2023 Arterials) $220,000.00 Operating ‐ CDD Request $98,000.00
New Fleet: CDD ‐ Building & Safety (3 new vehicles) $98,000.00 Parking Request $155,000.00
1166 Higuera Parking Lot ‐ Improvements $100,000.00
Big Belly Trash Cans in Parking Structures $35,000.00
Parking Structure Safety Element Research and Design $20,000.00 Sewer Fund Request $5,731,000.00
Buckley Lift Station $150,000.00
Foothill and Santa Rosa CalTrans Pipeline Replacement $350,000.00 Major Facility Maintenance ‐ 879 Morro Roof $65,000.00
New Fleet: Utilities Chief Operator ‐ WWC Ford Lightning (std range) $70,000.00 New Fleet: Utilities Safety Manager $12,500.00
Sewer Inflow/Infiltration Reduction $220,000.00
Sewer‐main Replacement: Morro, Mill, Santa Rosa, and Chorro Pipeline $1,100,000.00 Sewer‐main Replacement: Oceanaire ‐ Cayucos to Froom Road $700,000.00 Wastewater Collections System ‐ Point Repairs $140,000.00 Wastewater Collections System Improvements ‐ Islay, Henry, Sierra Way $2,200,000.00 Water Meters and Boxes $288,500.00
Water Meters and Boxes ‐ AMI Box Lids $75,000.00
Water Meters and Boxes ‐ AMI Radios $360,000.00
Water Fund Request $2,761,000.00
Fire Hydrants $55,000.00
Major Facility Maintenance ‐ 879 Morro Roof $65,000.00
Mid‐Higuera Bypass $45,000.00
New Fleet: Utilities Safety Manager $12,500.00
Salinas Reservoir Transfer of Ownership Plan $550,000.00 Water Meters and Boxes $288,500.00
Water Meters and Boxes ‐ AMI Box Lids $75,000.00
Water Meters and Boxes ‐ AMI Radios $360,000.00
Waterline Replacement: Chorro ‐ Highland to Meinecke 24‐inch Pipeline Replacement $720,000.00 Waterline Replacement: Johnson ‐ Iris to Bishop $440,000.00 Waterline Replacement: Santa Rosa ‐ Stenner Creek Road to Highland 30‐inch Pipeline $150,000.00 Grand Total $16,454,163.22
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6 Table 7.2. Supplemental Budget Request By Project:
Project Account Additional Budget Request
1166 Higuera Parking Lot ‐ Improvements $100,000.00
Big Belly Trash Cans in Parking Structures $35,000.00
Buckley Lift Station $150,000.00
Building Electrification PG&E SST Program $50,000.00
Emergency Storm Response Projects $2,100,000.00
Fire Hydrants $55,000.00
Foothill and Santa Rosa CalTrans Pipeline Replacement $350,000.00 Major Facility Maintenance ‐ 879 Morro Roof $130,000.00 Mid‐Higuera Bypass $45,000.00
Mission Plaza Enhancements $1,398,163.22
New Fleet: CDD ‐ Building & Safety (3 new vehicles) $98,000.00 New Fleet: Fire Station 5 Apparatus (Debt Finance Yr 1) $150,000.00 New Fleet: Parks and Rec Ranger Truck, F150 Lightning (long range) $81,000.00 New Fleet: Utilities Chief Operator ‐ WWC Ford Lightning (std range) $70,000.00 New Fleet: Utilities Safety Manager $50,000.00
North Chorro Neighborhood Greenway $375,000.00
Parking Structure Safety Element Research and Design $20,000.00 Remodel City Hall's lower‐level Finance/IT Office area $750,000.00 Righetti ‐ Community Park (phase 1) $750,000.00
Safety Center/1106 Walnut $750,000.00
Salinas Reservoir Transfer of Ownership Plan $550,000.00 Sewer Inflow/Infiltration Reduction $220,000.00
Sewer‐main Replacement: Morro, Mill, Santa Rosa, and Chorro Pipeline $1,100,000.00 Sewer‐main Replacement: Oceanaire ‐ Cayucos to Froom Road $700,000.00 Street Reconstruction & Resurfacing ‐ Sealing Project $1,060,000.00 Street Reconstruction & Resurfacing (2023 Arterials) $220,000.00 Wastewater Collections System ‐ Point Repairs $140,000.00 Wastewater Collections System Improvements ‐ Islay, Henry, Sierra Way $2,200,000.00 Water Meters and Boxes $288,500.00
Water Meters and Boxes $288,500.00
Water Meters and Boxes ‐ AMI Box Lids $150,000.00
Water Meters and Boxes ‐ AMI Radios $720,000.00
Waterline Replacement: Chorro ‐ Highland to Meinecke 24‐inch Pipeline Replacement $720,000.00 Waterline Replacement: Johnson ‐ Iris to Bishop $440,000.00 Waterline Replacement: Santa Rosa ‐ Stenner Creek Road to Highland 30‐inch Pipeline $150,000.00 Grand Total $16,454,163.22
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7 1166 Higuera Parking Lot Improvements: $100,000
Staff recommends that $100,000 be allocated toward the 1166 Higuera Parking Lot project for several critical reasons. At the November 14, 2023
Council meeting, authorization was granted for the purchase of 1166 Higuera to accommodate 44 paid parking stalls and prepare the site for public use. This project encompasses necessary parking lot improvements, including signage, striping, wheel stops, parking pay stations, landscaping, and the demolition of the existing structure on the lot. However, current construction estimates indicate that additional funding is required to cover the costs associated with the demolition and removal of the building. Therefore, the requested allocation will ensure the project's timely and successful completion, adhering to the Council's original vision and providing the community with the intended parking facilities.
Big Belly Trash Cans in Parking Structures: $35,000
This is a new project to remove 14 existing old style trash cans from the parking structures and install new Big Belly brand trash cans. Big Belly trash cans were installed on‐street throughout downtown and have proven to be functional and attractive. Thisis a portion of the replacement needsin the parking structures.
There are currently 33 old style trash cans that need to be replaced with the new Big Belly brand. The remining cans will be budgeted for replacement in the 2025‐2027 Financial Plan.
Buckley Lift Station: $150,000.00
The Buckley Lift Station is a new city asset within the Avila Ranch development that will serve the southwest portion of the Airport Specific Area. The current project associated with this asset will include capacities for all phased construction of the Avila Ranch Development and will have the ability to expand as future discharge flows increase consistent with the Land Use and Circulation Element (LUCE). The Lift Station is partly funded by the developer and citywide sewer impact fees in accordance with the 2017 Development Agreement and conditions of approval. Additional funding is requested for the existing appropriation to cover cost escalation experienced with electrical components, and design modifications needed to facilitate the construction phase because of site constraints.
Building Electrification PG&E SST Program: $50,000
Staff recommends that the City collaborate with PG&E's System Safety and Integrity (SST) program to perform an audit of existing facilities to effectively implement the City‐wide Building Electrification initiative. The SST program's expertise in enhancing infrastructure safety and reliability through advanced technology and risk management is well‐suited to support this transition. The initial phase of the collaboration involves conducting a thorough audit and generating a detailed report on the current state of the City's infrastructure, identifying necessary upgrades or modifications. After the audit is completed, the City will have a clear understanding of the costs associated with the required building upgrades, which can then be incorporated into the financial planning process. Partnering with the SST program will ensure a well‐managed, safe, and efficient transition to electrified buildings, contributing to a more sustainable and resilient urban environment.
Emergency Storm Response Projects: $2,100,000
Our emergency storm accounts have played a pivotal role in addressing the flood damage caused by the 2022 floods. The City responded swiftly to ensure that funding was available in these accounts before invoices or bills were due, demonstrating an atypical but necessary approach given the urgency of the situation. This proactive funding strategy allowed us to initiate critical projects without delay and also facilitated forecasting for potential FEMA reimbursement, mitigating financialstrain during an emergency.
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8 As we continue to prioritize the completion of the most urgent flood projects, there is a concerted effort to implement a more structured and controlled budgetary approach. This involves fully funding the projects in advance, aligning with the City's standard practice of securing funding for projects in full prior to commencement. To achieve this, staff is requesting an allocation of $2,100,000 to bolster the current emergency storm account. This funding will enable us to progress through each project phase seamlessly, whether it involves design or construction activities.
Looking ahead, projects transitioning towards construction will likely necessitate revisiting funding allocations during the 2025‐2027 financial plan cycle. This strategic budget planning not only ensures the timely completion of crucial flood mitigation projects but also reinforces our commitment to prudent financial management and preparedness for future emergencies.
Fire Hydrants: $55,000
The project includes fire hydrant units, and hydrant appurtenances where water distribution staff needs to replace public fire hydrants that are reported to be defective, leaking, or corroded. The objective of the project is to assess the condition of fire hydrants, and when applicable, replace with new hydrants that meet current codes and standards for protection of public health and infrastructure. When a defective hydrant isreported, water distribution staff will use best available technology to monitor the waterservice area (pressure zone) using leak detection equipment, sound correlators, radio monitoring telemetry of water flows and pressures, and catalog the inspection assessment into a GIS database. Additional funding is requested for the existing appropriation to cover cost escalation experienced with materials needed for construction of a hydrants, and appurtenances.
Foothill and Santa Rosa CalTrans Pipeline Replacement: $350,000 The objective of this project is to replace existing clay pipes from 1965 with a new 8‐inch sewer main serving areas that are along the Caltrans right‐of‐way. The sewer main at the intersection will need to be lowered to accommodate the proposed Caltrans drainage improvements. The sewer‐main replacement will reduce maintenance, inflow, and infiltration that have previously been recorded in this catchment area, and it will replace an existing maintenance‐hole with evidence of severe deterioration.
Major Facility Maintenance ‐ 879 Morro Roof: $130,000
Additional funding is requested for the existing appropriation to cover cost escalation experienced with providing labor, equipment, and materials for construction of a new roof at 879 Morro Street.
Mid‐Higuera Bypass: $45,000
The Mid‐Higuera Bypass Project seeks to reduce flooding from San Luis Obispo Creek and replace aging infrastructure. The project is in the final stages of easement acquisition and planning with utility companies for relocation of facilities. Additional funding is requested to cover the cost of escalated construction costs associated with replacing existing water infrastructure. Staff are developing 100% plans and specifications and working to finalize the construction cost estimate. Additional funding will be requested from Council once the project plans and specifications are finalized and ready to be advertised.
Mission Plaza Enhancement: $1,398,162.72
Mission Plaza Phase 1 is a critical project aimed at reactivating the current mission plaza with a new restroom, cafe kiosk, adobe repair and protection, lighting, and other amenities. Originally envisioned as part of a three‐phase plan, Phase 1 has already gone out to bid. However, the initial bid opening was rejected due to multiple bid item errors. The bid received indicated that additional funding would be necessary to complete the project.
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9 As part of our CIP true‐up process, it has been determined that Phases 2 and 3 are not progressing towards construction during the current financial plan. Therefore, staff is recommending reallocating the programmed dollars from these phases to contribute $470,028 toward Phase 1. Additionally, staff suggests appropriating an extra $928,135 from various General Fund and LRM‐funded projects as part of the CIP true‐up. This reallocation and additional funding will ensure the timely completion and success of this essential community enhancement project.
North Chorro Neighborhood Greenway: $375,000
While the North Chorro Neighborhood Greenway is substantially constructed, recent elements have resulted in unanticipated increased project costs, primarily due to the unanticipated need to remove two eucalyptus trees in Caltrans ROW at Chorro and Hwy 101 underpass, as the underground tree roots were in conflict with the footings necessary for the underpass fence. Unfortunately, this has also led to a minor delay in the project schedule. The increased work scope for the project as well as the delay in the project schedule requires the need for additional Construction Management services in order for the consultant to remain on the project through completion.
Moreover, the project is expected to incur higher costs related to its public art component. Staff are collaborating with vendors and contractors to implement the mural, lighting, and artistic fence under the freeway overpass. These elements are not included in the general contractor’s bid and will remain separate from it.
Parking Structure Safety Element Research and Design: $20,000 Parking structures have, unfortunately, played a role in suicide deaths over the past few years. The structures are some of the tallest and easily accessed buildings in the downtown area. This is largely because they are built for public use and parking structures tend not to be fully enclosed like other buildings. Safety elements like fencing, netting, and camera systems can be retrofitted to structures as deterrents to further self‐harm. $20,000 has been included in the CIP True‐Up to be used on consultants services to research feasibility of potential deterrents and to provide preliminary designs for the existing parking structures. The new Cultural Arts District Parking Structure (CAD‐PS) will be constructed with safety elements installed upon opening and will be funded through the CAD‐PS project account.
Remodel City Hall's lower‐level Finance/IT Office area: $750,000 The Finance and IT Office remodel project will reconfigure the existing layout of the office to addressspace constraints, ADA compliance and enhance safety measures at the Finance front counter. Growth of the Departments, in addition to divisions being relocated to City Hall have pressed the capacity of the existing conditions. The remodel organizes the Departments to promote collaboration and communication, produces room to expand into and improves visibility of the front counter. The project also relocates the conference room to be accessible from the main hallway, creating a more accessible space for the organization, and advisory body or community meetings. These changes increase accessibility while preserving spaces of confidentiality for CJIS compliance and sensitive payroll conversations. The Information Technology Division hasidentified some project accounts which had some projectsavingsthat could contribute toward this project accounting to $357,287.48. These accounts include the KVEC Tower, ERP Acquisition, IT Completed Projects, and IT Fund Balance.
Righetti Community Park (phase 1): $750,000
City staff is actively pursuing the implementation of the Righetti Park project, a crucial amenity identified in the Orcutt Area Specific Plan and the Righetti Ranch Development. This project encompasses the design Budget Page 61
10 and construction of three new parks, incorporating feedback from the public, staff, and the Parks and Recreation Commission. The proposed amenities for the Linear Park, Community Park, and Pocket Park are comprehensive, addressing a diverse range of recreational and community needs.
Currently, the estimated cost for the entire project stands at $23 million, while our available funding sources, including Local Revenue Measure, Quimby fees, OASP Park fund, and Park Improvement Impact fees, total $5,653,746.32. Due to this funding gap, City staff has identified the need to prioritize and segment out portions of the project for construction based on community needs and available resources.
Recognizing the community's emphasis on playground equipment and fields, staff is recommending a phased approach to prioritize the installation of these amenities, alongside essential infrastructure like parking and restrooms, within the Community Park. Ongoing efforts in the design phase for all park segments continue to ensure a comprehensive and successful implementation of the Righetti Park project.
City staff remains committed to seeing this project through to construction and completion.
Safety Center/1106 Walnut: $750,000
In May 2023, City staff acquired a new property at 1106 Walnut Street across the street from the existing Police Station. The property will provide office space for the City and potential future operational support for the Police Department. City staff has acquired consultant services to prepare construction documents for tenant improvements and the installation of site security fencing on the property. The 11,000 square foot building will provide office spaces, conference rooms, and training rooms. The initial estimates for these improvements based on preliminary design documents exceeds available funding. The original budget allocation was completed prior to the design and receipt of the initial cost estimate.
Salinas Reservoir Transfer of Ownership Plan: $550,000
Salinas Reservoir (also known as Santa Margarita Lake) islocated on the upper Salinas River, approximately 10 miles northeast of the City of San Luis Obispo (City) and captures water from a 112 square‐mile watershed. The City has an agreement with U.S. Army Corps of Engineers (USACE) to receive water from the reservoir. The purpose of this study is to review the terms of the existing agreement and determine what alternatives may be available should USACE decide to transfer the ownership of the asset to a local agency. Additional funding is requested for the existing appropriation to cover the proportional shared costs of a collaborative effort between the City and San Luis Obispo County in completing this preliminary report.
Sewer Inflow/Infiltration Reduction: $220,000
Replacement of wastewater collection pipes, and related infrastructure is an ongoing program for a reliable sanitary sewer collection system. The program’s inflow and infiltration program will conduct pipe integrity tests, video inspections of public sewers, smoke testing of service areas, and schedule point repairs to address existing deficiencies according to priority. The objective of the project is to explore opportunities to consolidate sewer collection systems that may run parallel along roadways and construct new sewer lateral interconnections that can simplify maintenance operations, reduce illegal stormwater connections into the sewer, and rehabilitate fractures in clay pipes that may be experiencing groundwater infiltration due to soil settlements or root instructions. A decrease of infiltration flows will result in lower energy costs needed to treat sewer volumes at the wastewater treatment plant. The project efforts may include sewer lateral rebates, engineering reports, construction plans for point repairs, construction management services, sewer maintenance‐hole re‐coatings, sewer flow monitoring studies, and field testing of wastewater piping infrastructure. Additional funding is requested for the existing appropriation Budget Page 62
11 to cover cost escalation experienced with materials needed for construction of a pipes and appurtenances related to sewer laterals.
Sewer‐main Replacement: Morro, Mill, Santa Rosa, and Chorro: $1,100,000 The City’s wastewater collection system includes approximately 140 miles of sewer mains. Some pipes are over 100 years old and are undersized to handle the current flow rates. Maintenance needs increase dramatically as pipelines reach their flow capacities, or when they approach the end of their useful life.
Pipelines in the public wastewater collection system are inspected using specialized video equipment that will prioritize periodic cleaning frequencies or recommend a complete replacement. Based on the assessment, this project is needed for the replacement of sewer mains dating back to 1948 that require high cleaning frequencies, have experienced structural failures due to root intrusions, and have shown high infiltration flows rates during major storm events. Additional funding is requested for the existing appropriation to cover cost escalation experienced with providing labor, equipment, and materials for the construction this high priority project.
Sewer‐main Replacement: Oceanaire ‐ Cayucos to Froom Road: $700,000 During the 2023 and 2024 storms, severe erosion was observed along Perfumo Creek, near Ocenaire Street, and across the alignment of an existing 15‐inch sewer main crossing the creek. This project is needed forthe replacement of a clay sewer pipe dating back to 1958 thatrequire high cleaning frequencies along backyard easements, have experienced structural failures due to root intrusions, and have shown high infiltration flows rates during major storm events. The project will include a new creek crossing at a new location not susceptible to creek flows or erosion and eliminate the need to cross behind residential parcels by constructing the new sewer main along the recently completed road and bridge on Froom Road south of Oceanaire.
Street Reconstruction & Resurfacing ‐ Sealing Project : $1,060,000 The 2024 Roadway Sealing project will focus on sealing localstreetsin pavement management areas 8 and
1. Apart from those pavement areas, the Project also includes pavement maintenance and striping on Johnson Avenue, Broad Street, and several parking lots, including the Damon Garcia Parking lot, Johnson Park Parking lot, and Mitchell Park Parking lot. The Project is structured with a Base Bid and one Additive Alternative A to maximize the scope of work within available funding. The Project’s base bid includesstreet sealing in Area 8 and 1, Johnson Avenue improvements and the sealing of the three parking lots included in the Project. The Project’s Additive Alternative A includes work on Grand Avenue which includes completes street improvements to improve active transportation facilities and safety for all road users as a pilot program that will be made permanent at a future time. Additional funding is requested for the existing appropriation to cover cost escalation experienced with providing labor, equipment, and materials for the construction. Should bids come in favorable, the project will include Grand Avenue.
Street Reconstruction & Resurfacing (2023 Arterials)/Sacramento Drive: $220,000 It isrecommended that fundsfrom the Sacramento Drive Paving project, totaling $220,000, be reallocated to the 2023 Paving Project currently in construction, pending approval by the City Council. The initial allocation for Sacramento Drive aimed to address immediate pavement concerns for bicycle users.
However, subsequent evaluations have shown that temporary solutions can sufficiently manage the cracking until the next scheduled paving project in fiscal year 2025. It is important to highlight that the temporary fix will be replaced with a permanent solution during the 2025 paving project. By reallocating these funds to the 2023 project, particularly in light of increased costs due to sidewalk transitions on Palm Street, we can effectively address pressing infrastructure needs while optimizing available resources. This Budget Page 63
12 recommendation aligns with our strategic approach to responsible resource management and timely execution of essential projects.
Wastewater Collections System ‐ Point Repairs: $140,000 Additional funding is requested for the existing appropriation to cover cost escalation experienced with providing labor, equipment, and materials for the construction of wastewater point repairs.
Wastewater Collections System Improvements ‐ Islay, Henry, Sierra Way: $2,200,000 Maintenance needs increase dramatically as pipelines reach their flow capacities, or when they approach the end of their useful life. Pipelines in the public wastewater collection system are inspected using specialized video equipment that will prioritize periodic cleaning frequencies or recommend a complete replacement. Based on the assessment, this project is needed for the replacement of sewer mains dating back to 1910 that make up potions of the backbone system serving essential facilities along Johnson Avenue. The project will be coordinated with the efforts being made by the hospital’s infrastructure improvements along Iris Road and the railroad crossing to ensure design capacities are adequate for current and future needs. Additional funding is requested for the existing appropriation to cover cost escalation experienced with providing labor, equipment, and materialsforthe construction of a new sewer main.
Water Meters and Boxes ‐ AMI Box Lids: $150,000, Radios $720,000, Meters and Boxes $577,000 The project includes materials for water meters, meter appurtenances, and meter boxes where water distribution staff needs to remove or repair public water meters within the distribution system that are reported to be defective. The objective of the project is to increase accuracy and reliability of public water meters, and efficiently manage all water resources in a cost‐effective manner. When leaks are suspected, water distribution staff will use best available technology to monitor the water service area (pressure zone) using: leak detection equipment, sound correlators, radio monitoring telemetry of water flows around a pressure zone, and pilot tests by the water distribution staff for a temporary district metering area. Additional funding is requested to begin the addition of Advanced Metering Infrastructure (AMI) using telemetry that can augment the ability to accurately read water consumption, promptly provide billing information to customers, and facilitate a better customer service interaction during the start and stop of waterservices. Meters are currently read manually and past delays with the City’s contract meter reading service have caused delays in customer billing, increased challenges in calculating revenues for the Water and Sewer Funds, and potentially lowered confidence in the City’s services.
To assist with expenditures associated with this project, staff are also beginning to seek grant opportunities to offset costs. To date, staff have identified one possible grant opportunity, though it is highly competitive and does not fully align with the timing of the AMI project. For this reason, staff are recommending the full amount of funding required for the much‐needed AMI project and will continue seek outside funding that could be directed towards minimizing the fiscal impacts of the project.
Waterline Replacement: Chorro ‐ Highland to Meinecke 24‐inch Pipeline: $720,000 The City operates a complex potable water distribution system that is comprised of 15 distribution zones, nine potable water storage tanks, two reservoirs, five hydro‐pneumatic tanks, seven pump stations, 21 pressure reducing valves (PRVs) and over 180 miles of pipe with diameters ranging in size from four inches to 30 inches. This project will replace critical infrastructure that has reached the end of its useful life, experienced water main breaks, and is ranked as a high priority for replacement. The objective of the project is to replace existing 4‐inch and 6‐inch cast‐iron pipes in the vicinity with pipe meeting new Budget Page 64
13 standards by the American Water Works Association (AWWA) to provide resiliency in the distribution network against variations in pressure and flows with a new 24‐inch transmission pipeline. Additional funding is requested for the existing appropriation to cover cost escalation experienced with providing labor, equipment, and materials for construction of a new ductile‐iron water main.
Waterline Replacement: Johnson ‐ Iris to Bishop: $440,000 Additional funding is requested for the existing appropriation to fund the completion of the Johnson Road water main replacement and a contract‐change‐order needed to remove and replace the water main along Iris from Fixlini to Johnson. The water main along Iris experienced a small crack as part of the original contract construction, and exposed severe deterioration of the remaining 300‐feet of existing water main.
Waterline Replacement: Santa Rosa ‐ Stenner Creek Road to Highland 30‐inch Pipeline: $150,000 Additional funding is requested for the existing appropriation to cover cost escalation experienced with providing labor, equipment, and materials for the construction of a new 30‐inch water transmission pipeline.
New Fleet CDD ‐ Building & Safety (3 new vehicles): $98,000 The Community Development Department recommends the addition of three new fleet vehicles to the Building and Safety Division, funded through operationalsavings. The first vehicle is needed for a new full‐ time Building Inspector position, currently a contract role, to manage the unprecedented levels of inspection demands. Thisrole requires consistent and reliable transportation to various construction sites for timely and effective inspections. The second vehicle is to replace a grey fleet vehicle (a 2002 Rav4), which is currently used by the building inspection team. Reliable transportation is critical for the building inspection team as the majority of their work is in the field visiting various project sites.
The third vehicle is for a Stormwater Code Enforcement Officer, who currently uses a pool vehicle. This officer is responsible for ensuring compliance with Federal, State, and regional stormwater regulations at private construction sites, addressing deficiencies that led to a Notice of Violation from the Regional Water Quality Control Board. A dedicated fleet vehicle is necessary to maintain inspection standards and respond promptly to any compliance issues. These additions are crucial to meet the growing operational needs of the Building and Safety Division and to uphold the City's commitment to safety and regulatory compliance.
Fire Station 5 Apparatus (Debt Finance Yr 1): $150,000
Securing funding for a new Fire Apparatus crucial for the impending development of Fire Station 5. This station's necessity stemsfrom the housing developments on the South side of San Luis Obispo, particularly towards the Avila Ranch Development. An agreement with the Avila Ranch developer mandates the construction of a temporary fire station once a specific number of homes are completed, a milestone expected by the end of 2026.
Considering the lead time of 24‐36 months for procuring such a vital apparatus, immediate action is imperative to ensure it is operational precisely when required. As per the City's policy, vehicles exceeding $200,000 can be financed through debt or leasing options. Therefore, we propose allocating $150,000 in the FY2024‐25 budget towards this critical acquisition. This funding accounts for the first six months of a five‐year loan starting in January 2025.
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14 New Fleet ‐ Utilities New Chief Operator (Ford Lightning ‐std range): $70,000 Staff is recommending the creation of a Wastewater Collection System Chief Operator which will help ensure compliance and completion of mandatory State and City initiated requirements. The CIP request is to support the addition of this position with an appropriate vehicle request.
New Fleet ‐ Utilities Safety Manager: $50,000
The Safety Manager has been relying on an aging grey vehicle that has exceeded its operational lifespan.
Staff recommends allocating funds to procure a new vehicle, aligning with the City’s fleet replacement guidelines.
New Fleet ‐ Parks and Recreation Ranger (Ford Lightning ‐long range): $81,000 Currently, there are 7 rangers and 3 open space technicians, alongside the potential addition of 7‐10 interns (provided by City Fire), while Ranger Service fleet current inventory is only 5 trucks. This shortage necessitates the use of personal vehicles for site visits, which is both inefficient and unsustainable. With the responsibility of maintaining 66.5 miles of trails across 4,100 acres of open space, Ranger Service workload is substantial. The condition and status of 28 trail heads require daily or weekly checks, depending on community use and weather impacts. The inclusion of an EV truck would not only alleviate Ranger Service transportation constraints but also offer practical benefitsin supporting operational needs and requirements. These trucks are equipped with power outlets, enabling Rangers and Open Space Techs to operate battery operated equipment, as well as power water pumpsfor essential tree planting projects citywide. Considering the upcoming trail projects slated for FY 2024‐25, in addition to regular duties, the acquisition of an EV truck is deemed a necessity as it would enhance Ranger efficiency, reduce the carbon footprint, and ultimately contribute to the preservation and enhancement of the valued City open spaces.
The Open Space Maintenance CIP account has been identified as a funding source for this vehicle.
Transit Grant Adjustment
In addition to the supplemental funding requests, the Transit Division proposes a modification to the 2023‐2025 Financial Plan. The modifications are a combination of new funding requests based on grants funds applied for this fiscal year as well as adjustments to existing projects intended to better reflect the state and federal grants the City anticipates receiving in FY 2024‐25. By clearly listing these anticipated grants in the financial plan, the City improves its chances of securing the funding. The revised plan offers a more precise breakdown of the projects and their associated dollar amounts, ensuring a more transparent and accurate allocation of the expected funds. The following table represents the changes proposed in FY 2024‐25 of the 2023‐25 Financial Plan.
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15 Table 7.3. Transit Grant Adjustments/FY 2024‐2025:
Parkland Development Fee Adjustments
Staff is recommending the transfer of $200,000 from the Emerson Park Amenity Upgrades and Beautification project account back into Fund 510 and un‐appropriating $138,341 from Righetti Community Park (Phase 1) project in FY 2024‐2025 due to the stipulations of Fund 510. Fund 510, a Citywide Parkland Development Fee, is designated specifically for the acquisition of parkland to enhance access and usability for the City. Both Emerson Park and Righetti Community Park projects have revealed that land acquisition is not a component of the projects. The projects focus solely on the construction and development of parks without the need to purchase additional property. Consequently, the fees in Fund 510 cannot be used for these projects, asthe fund isrestricted to expendituresfor acquiring new parkland.
Staff has already identified a supplementary solution to cover the $138,341 510 Fund shortfall and additional contributionsrequired for Righetti Community Park, which has been identified in tables 7.1 and
7.2 above. The Emerson Park project, based on the latest construction estimates, remains underfunded.
Further funding for Emerson Park will be sought during the 2025‐2027 financial planning process as the design progresses. This reallocation ensures compliance with Fund 510 guidelines while addressing immediate funding gaps through alternative solutions.
As a result, the funds from Fund 510 will either remain in or be returned to the fund until the 2025‐2027 financial plan, when they can be allocated to appropriate projects that involve land acquisition. This approach ensuresthat the funds are utilized in accordance with their designated purpose. The table below shows $200,000 being transferred out of the Emerson Park Project Account into the Parkland Development Fee, Fund 510, and $138,341 deprogrammed from the Righetti Community Park project back into the Parkland Development Fee, Fund 510.
Table 7.4. Parkland Development Fee Adjustments/FY 2024‐2025:
Transit Project FY 2024‐2025 Grant
2 Battery Electric Buses and Associated Infrastructure
FTA 5307 and TDA $370,800.00
3 Battery Electric Buses and 1 Cutaway Bus
FTA 5339, LCTOP, and Other (as needed) $6,314,035.00
Auto Vehicle Locator System Replacement
SLOCOG TIRCP Grant $130,000.00
Battery Electric Bus Charging Infrastructure
SLOCOG LCTOP Grant $304,300.00
On‐bus Security Camera System Replacement
SLOCOG TIRCP Grant $750,000.00
Grand Total $7,869,135.00
Project
Transfer from
Existing Account
Deprogramed from
FY 2024‐2025 Total
Parkland Development Fees (510) $200,000.00 $138,341.00 $338,341.00 Emerson Park Amenity Upgrades and Beautification $200,000.00 $200,000.00 Righetti ‐ Community Park (phase 1) $138,341.00 $138,341.00 Budget Page 67
16 Funding Opportunities
Staff hasidentified 46 accountsin the current CIP that do not require funding before July 2025, amounting to $22,723,163 in available funding. Of these accounts, 34 are projects listed in the CIP that will not commence construction before July 2025. These 34 projects have not been reprioritized and those currently in the design phase will continue to be prepared for construction in the upcoming financial plan.
Projects that have had their budgets reallocated during the CIP True‐up will be brought back to the CIP Review Committee and Council during the 2025‐2027 financial planning process. Any projects listed in the table below without a narrative are merely projects that would not otherwise go to bid during the current financial plan.
The table below outlines funds recommended for transfer from an existing account versus funds recommended for reallocation that would have been coming into an account July 1, 2024, providing a clear overview of funding adjustments. Additionally, to address the funding shortfall, staff recommends leveraging capital reserves, completed projects, or identified operating accounts as detailed in the Project Savings section of the table. This proactive strategy ensures that the CIP budget remains aligned with strategic goals, maximizing the impact of our investments.
Two tables are included below, one categorized by account circumstance (projects not ready for construction, accounts with project savings, or alternate cases), and the other categorized by funding source. Both tables include the same data displayed in alternative ways.
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17 Table 7.5. Budget Transfers by Account Circumstance:
Project Account Existing Balance (Transfer) New Funding ‐ July 24 (Reallocation) Total
Favorable Construction Bid $200,000 $200,000
Righetti Hillside Repair $200,000 $200,000
Project Added to 2025 Paving Project $220,000 $220,000
Sacramento Drive Paving $220,000 $220,000
Project Savings $3,923,609 $81,000 $4,004,609
CIP Reserve $1,500,000 $1,500,000
ERP Acquisition $69,740 $69,740
IT Completed Projects Account $4,959 $4,959
KVEC Tower $207,589 $207,589
Water Unreserved Capital $1,751,000 $1,751,000
IT Fund Balance $75,000 $75,000
CDD Operating Account (For Inspector Vehicle Use) $98,000 $98,000 Curb Ramps $67,322 $67,322
CIP Completed Projects Account $150,000 $150,000
Open Space Maintenance $81,000 $81,000
Rescheduled Project $11,248,526 $7,050,028 $18,298,554
871 Marsh Parking Structure Maintenance ‐ General Parking Structure Maintenance $100,000 $100,000 Bob Jones Trail and RRST Solar Lighting $1,350,000 $1,350,000 Bridge Preventative Maintenance $200,000 $200,000
Downtown Renewal ‐ Broad Street ‐ West Side ‐ Higuera to Marsh $200,000 $200,000 Fire Hydrants $55,000 $55,000
Foothill Sewer Lift Station Replacement $2,000,000 $2,000,000 General Parking Structure Account $55,000 $55,000
Major Facility Maintenance ‐ Corp Yard $249,193 $249,193 Major Facility Maintenance ‐ Hydration Stations $34,333 $25,000 $59,333 Parking Lot Maintenance ‐ Laguna Lake $35,000 $35,000
Parking Lot Maintenance ‐ Ludwick Community Center $10,000 $10,000 Parking Lot Maintenance ‐ Meadow Park $100,000 $100,000 Parking Lot Maintenance ‐ Santa Rosa Park $300,000 $300,000 Parking Lot Maintenance ‐ Throop Park $80,000 $80,000
Pedestrian and Bicycle Pathway Maintenance ‐ Andrews and Johnson Bike Path $10,000 $10,000 Pedestrian and Bicycle Pathway Maintenance ‐ Railroad Safety Trail $275,000 $275,000 Playground Equipment Replacement ‐ Mitchell Park Playground $100,000 $100,000 Reycled Water Annual UV Bulb Replacement $10,000 $10,000 Sewer Lift Station Replacement ‐ Airport Lift Station $800,000 $800,000 Sewer‐main Replacement: San Jose, Ramona, Monte Vista, and California $1,225,000 $1,225,000 SLO Creek Walk Maintenance ‐ Lighting, Signage, Irrigation, Plants $250,000 $250,000 Water Storage Tank Major Maintenance ‐ Edna Tank Recoating $1,000,000 $1,000,000 WRRF and Wastewater Collection Maintenance Facility $6,000,000 $6,000,000 Parking Pay Station Installation $600,000 $600,000
Laguna Lake Dredging and Sediment Management $800,000 $800,000 Major Facility Maintenance ‐ ADA Transistion Plan $15,000 $15,000 Mission Plaza Phase 2 $370,028 $370,028
Mission Plaza Phase 3 $100,000 $100,000
ATP ‐ Orcutt Road Railroad Crossing Upgrades $200,000 $200,000 Pedestrian and Bicycle Pathway Maintenance ‐ Various Locations $150,000 $150,000 Sewer‐main Replacement: Serra, Bressi, Dana and Higuera Pipeline $1,275,000 $1,275,000 Sewer Lift Station Replacement ‐ Silver City Lift Station $100,000 $100,000 Public Art Installations ‐ Roundabouts $225,000 $225,000 Grand Total $15,592,135 $7,131,028 $22,723,163
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18 Table 7.6: Budget Transfers by Funding Source:
Righetti Hillside Repair: $200,000
Righetti Hill was dedicated to the City as Open Space as part of the approval of the Righetti Ranch residential development. The construction of the development placed homes and drainage facilities close Project
Existing Balance (Transfer) New Funding ‐ July
24 (Reallocation) Total
Additional Funding Sources $3,578,959 $3,578,959
CIP Reserve $1,500,000 $1,500,000
IT Completed Projects Account $4,959 $4,959
Water Unreserved Capital $1,751,000 $1,751,000
IT Fund Balance $75,000 $75,000
CDD Operating Account (For Inspector Vehicle Use) $98,000 $98,000 CIP Completed Projects Account $150,000 $150,000
General Capital Outlay $286,565 $575,000 $861,565
KVEC Tower $10,537 $10,537
Major Facility Maintenance ‐ Corp Yard $249,193 $249,193 Parking Lot Maintenance ‐ Santa Rosa Park $300,000 $300,000 Pedestrian and Bicycle Pathway Maintenance ‐ Railroad Safety Trail $275,000 $275,000 Curb Ramps $26,835 $26,835
Info Tech Repl Fund $95,041 $95,041
ERP Acquisition $69,740 $69,740
KVEC Tower $25,301 $25,301
Local Revenue Measure $2,676,570 $2,346,028 $5,022,598
Bob Jones Trail and RRST Solar Lighting $1,350,000 $1,350,000 Bridge Preventative Maintenance $200,000 $200,000
Downtown Renewal ‐ Broad Street ‐ West Side ‐ Higuera to Marsh $200,000 $200,000 Fire Hydrants $55,000 $55,000
KVEC Tower $171,750 $171,750
Major Facility Maintenance ‐ Hydration Stations $34,333 $25,000 $59,333 Parking Lot Maintenance ‐ Laguna Lake $35,000 $35,000
Parking Lot Maintenance ‐ Ludwick Community Center $10,000 $10,000 Parking Lot Maintenance ‐ Meadow Park $100,000 $100,000 Parking Lot Maintenance ‐ Throop Park $80,000 $80,000
Pedestrian and Bicycle Pathway Maintenance ‐ Andrews and Johnson Bike Path $10,000 $10,000 Playground Equipment Replacement ‐ Mitchell Park Playground $100,000 $100,000 Righetti Hillside Repair $200,000 $200,000
Sacramento Drive Paving $220,000 $220,000
SLO Creek Walk Maintenance ‐ Lighting, Signage, Irrigation, Plants $250,000 $250,000 Curb Ramps $40,487 $40,487
Laguna Lake Dredging and Sediment Management $800,000 $800,000 Open Space Maintenance $81,000 $81,000
Major Facility Maintenance ‐ ADA Transistion Plan $15,000 $15,000 Mission Plaza Phase 2 $370,028 $370,028
Mission Plaza Phase 3 $100,000 $100,000
ATP ‐ Orcutt Road Railroad Crossing Upgrades $200,000 $200,000 Pedestrian and Bicycle Pathway Maintenance ‐ Various Locations $150,000 $150,000 Public Art Installations ‐ Roundabouts $225,000 $225,000 Parking $155,000 $600,000 $755,000
871 Marsh Parking Structure Maintenance ‐ General Parking Structure Maintenance $100,000 $100,000 General Parking Structure Account $55,000 $55,000
Parking Pay Station Installation $600,000 $600,000
Sewer Fund $8,800,000 $2,600,000 $11,400,000
Foothill Sewer Lift Station Replacement $2,000,000 $2,000,000 Sewer Lift Station Replacement ‐ Airport Lift Station $800,000 $800,000 Sewer‐main Replacement: San Jose, Ramona, Monte Vista, and California $1,225,000 $1,225,000 WRRF and Wastewater Collection Maintenance Facility $6,000,000 $6,000,000 Sewer‐main Replacement: Serra, Bressi, Dana and Higuera Pipeline $1,275,000 $1,275,000 Sewer Lift Station Replacement ‐ Silver City Lift Station $100,000 $100,000 Water Fund $1,010,000 $1,010,000
Reycled Water Annual UV Bulb Replacement $10,000 $10,000 Water Storage Tank Major Maintenance ‐ Edna Tank Recoating $1,000,000 $1,000,000 Grand Total $15,592,135 $7,131,028 $22,723,163
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19 to the hillside. Several landslides have occurred on the hillside over the years. Due to the risk of another slide and potential for further deterioration of the temporary repair completed by the developer, the City Manager enacted emergency purchasing provisions of Municipal Code Section 3.24.060 on January 8, 2024. Plans were advertised on March 15, 2024 and opened on April 12, 2024. One bid was received with David Crye General Contractorsubmitting a bid well below the Engineer’s Estimate. Staff isrecommending a transfer of $200,000 that will not be needed due to the low bid received.
Table 7.7. Supplemental Funding Summary:
The table above provides a comprehensive overview of all fund accounts in aggregate, demonstrating a balanced approach between funding requests and reallocation from existing projects in the CIP that are notscheduled for construction before July 2025. Additionally, there issupplementary support from various accounts including the CIP Reserve, CIP Completed Projects Account, IT Completed Projects Account, IT Fund Balance, Community Development Operating Account, and the Water Fund’s unreserved working capital, which are detailed in Table 7.6 Budget Transfers by Funding Source.
Two funding sources listed in Table 7.7 above are not balanced. Staff are recommending the transfer of $5,669,000 in encumbered projects to the Sewer Fund’s unreserved working capital to offset anticipated cost escalation related to capital projects for sewer main and lift station replacements. Additionally, staff are exploring tax credits through the Inflation Reduction Act to further offset anticipated cost escalations.
This strategy is consistent with the City’s CIP true‐up methodology and ensures that critical projects are sufficiently funded beyond the 2023‐25 Financial Plan. Staff are also recommending not to allocate $600,000 into the Parking Pay Station project account and to leave funding in the parking enterprise fund.
This modification to the current financial plan was proposed but not officially adopted at the November 7, 2023 City Council meeting updating Council on the parking program and parking rate study.
Infrastructure Investment Fund Status
The Infrastructure Investment Fund (IIF) was established with the primary goal of enabling the City to harness the advantages of well‐planned growth, a process that often requires timely financial support for essential infrastructure. The fund's purpose extends to leveraging additional grant funding, providing loans, or directly participating in critical infrastructure projects that enhance quality of life and spur economic development.
Originally earmarked for the Prado Interchange and Prado Road Widening Projects, legacy projects within the City, the fund has evolved to support initiatives with broader community benefits and positive Funding Source Budget Request Budget Transferred/Reallocated CIP Completed Projects $150,000 $150,000
General Capital Outlay $861,565 $861,565
Info Tech Repl Fund $175,000 $175,000
Local Revenue Measure $6,522,598 $6,522,598
Operating ‐ CDD $98,000 $98,000
Parking $155,000 $755,000
Sewer Fund $5,731,000 $11,400,000
Water Fund $2,761,000 $2,761,000
Grand Total $16,454,163 $22,723,163
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20 economic impacts. These new projects, initially centered on land acquisition, are now progressing through design and construction phases under the oversight of the CIP Engineering team.
As the City increasingly leverages the IIF to enhance San Luis Obispo's quality of life, transparent reporting on current and future expenditures becomes crucial for accountability to the City Council. The tables below detail revenues and expenditures for FY 2023‐24, with forecasts extending into FY 2024‐25 and FY 2025‐
26. At the FY 2023‐24 Mid‐Year budget report, the City planned for an additional contribution to the IIF in FY 2024‐25 that was contingent on FEMA reimbursement. While the City expects to receive reimbursement in FY 2024‐25, due to uncertain timing we forecast the final repayment of 1166 Higuera and additional contribution to the IIF in February and July 2025, respectively. Additionally, the Prado Bridge Widening planned contributions from the IIF have been reallocated from FY 2024‐25 to FY 2025‐26. Upon reviewing the construction schedule, it is anticipated that construction will not commence until November 2025, which aligns with the funding need.
Additionally, although the funds appear sufficient following the FY 2023‐24 summary, failure to receive FEMA reimbursements would prevent the IIF from fulfilling its currently planned commitments. Therefore, ongoing monitoring and adjustments are essential to ensure the availability of funds for these projects.
Table 7.8: IIF Fund Summary and Forecast
*Transfers contingent upon available funding, which is dependent upon the General Fund receiving reimbursement from FEMA for winter 2023 storm expenditures.
Payment Amount Ending Account Balance
Starting Fund Balance FY 23‐24 $ 9,630,088.00 $ 9,630,088.00 Repayment of 1106 Walnut $ 5,400,000.00 $ 15,030,088.00 1166 Higuera Property Aquisition $ (4,845,000.00) $ 10,185,088.00 Mid‐Year Repayment of 1166 Higuera $ 4,000,000.00 $ 14,185,088.00 Mid‐Year Transfer in Lieu of David Statue $ 120,000.00 $ 14,305,088.00 Mid‐Year Transfer to Broad Street $ (800,000.00) $ 13,505,088.00 600 Tank Farm, Buckley Extension $ (2,641,092.00) $ 10,863,996.00 $ 10,863,996.00
FY 2023‐2024 IIF Fund Summary
Payment Amount Payment Date Ending Account Balance
Prado Bridge Widening Reallocated 25‐26 Jul‐24 $ 10,863,996.00 Prado Interchange $ (2,750,000.00) Jul‐24 $ 8,113,996.00 Final Repayment of 1166 Higuera
FY 2024‐2025 Mid‐Year Recommended Transfer* 845,000.00 $ Feb‐25 $ 8,958,996.00 $ 8,958,996.00
Payment Amount Payment Date Ending Account Balance
Prado Interchange $ (1,150,000.00) Jul‐25 $ 7,808,996.00 FEMA Reimbursement* $ 2,959,358.00 Feb‐25 $ 10,768,354.00 Prado Bridge Widening (reallocated from 24‐25) $ (10,000,000.00) Jul‐25 $ 768,354.00 $ 768,354.00
FY 2024‐2025 IIF Fund Forecast
FY 2025‐2026 IIF Fund Forecast
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Major City Goals
Section 8: Major City Goals
Writeups below represent updatesto previously published reports. Many Major City Goal tasks have been completed and therefore an update has not been provided. Table 8.1 includes detailed information and statuses on all Major City Goal tasks.
Economic Recovery, Resiliency & Fiscal Sustainability
In collaboration with local partners, continue to support economic recovery for all from the COVID pandemic and support a thriving local economy by supporting local businesses, arts and culture, downtown vitality, practicing fiscal responsibility, paying down unfunded pension liabilities, and investing in critical infrastructure.
Strategy Updates:
1.2 Business Support
h. Continue to support the childcare options for school age children through the City's own programs and programs in conjunction with other partners. Youth Services maintains its commitment to supporting TK, Before & Afterschool programs, Teacher Workdays, and spring break camps across the five District elementary schools. Presently, staff are diligently gearing up for summer camps and ensuring seamless support for District summer school schedules. Fall registration for these programs commences on April 8, 2024.
I. Proactively evaluate and implement after briefing council on opportunities to partner with Cal Poly, San Luis Coastal Unified School District and other major employersfor employersupported childcare programs.
The City continues to participate in the Childcare Study that began in 2020 with agency partners: SLCUSD, SLO County, Cal Poly, First Five, and CAPSLO. Most recently, the partners have hired a consultant to provide a feasibility study to identify facilities available within the County and what would be necessary, fiscally and resource wise, to open a joint agency childcare facility to serve staff members. The study is underway and expected to be complete in late June 2024.
1.3.Downtown Vitality
The Cultural Arts District Parking Structure project is currently in Phase 2 of construction. All site preparation is complete and ground improvements have begun. In April 2024, construction moved into the right‐of‐way beginning with undergrounding of utilities like electrical lines. Right‐of‐way construction is likely to continue through summer 2025 with intermittent partial and full road closures. Structure construction is on schedule to be completed early in 2026.
On May 14, 2024, Council considered the findings from the Parking Rate Study which analyzed potential changes to on‐street, off‐street, and permit rates to address community concerns while maintaining a fiscally sustainable parking fund. Council approved a rate structure that:
reduced on‐street parking rates,
reduced parking structure rates including the daily max, reduced parking structure monthly permit rates, and
reduced the cost of parking validation.
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Major City Goals
In order to provide a fiscally sustainable parking fund with the previously mentioned parking rate reductions, the elimination of the first hour free and free Sunday parking programs in the parking structures was required. The new rate structure is scheduled to be implemented on July 8, 2024. In addition to parking rate structure changes, Council also directed staff to move forward with parking operational improvements that are intended to make parking easier for the community. Those improvements include:
Reducing to a single mobile parking payment app,
Develop and offer promotional discounts,
Updating signage improving the user experience,
Transition to a consistent pay‐at‐exit gated systems for all parking structures, Develop a solution to reduce impacts of parking rate structure changes to those community members that are parking to go the library, attend public meetings, or other short term governmental service needs.
The Mission Plaza Enhancements Project was publicly bid and those bids were opened on April 18, 2024.
The City received one bid and that bid was rejected due to defects. The project is currently soliciting bids for the second time and those bids are currently planned to be opened on June 13, 2024. This delay allows the summer concerts in the plaza to occur without construction impacts, which is a benefit for the 2024 concert season.
1.4 Support Arts and Culture
a. Continue to work with our community partners to ensure the Cultural Vitality of the City. Public Art continues its partnerships with SLOMA, NAACP, CCAC, and the County Arts Council. Staff also continue to provide assistance to SLO REP in the relocation of their operations to a new theater at the Cultural Arts District parking structure site.
b. Continue to execute the City's public art master plan. Continuing the City's commitment to public art, the recently hired Coordinator is overseeing the implementation of various projects outlined in the master plan. These include the Utility Box Art program, murals, and engaging local community artists through outreach efforts. Building on past successes, such as the Seven Sisters mural and Mamma Mobius installation, the City aims to further promote diversity, equity, and inclusion in future art installations across the community.
Diversity, Equity, Inclusion
In response to our commitment to making San Luis Obispo a more welcoming and inclusive city for all, continue to develop programs and policies to support diversity, equity, and inclusion initiatives and advance the recommendations of the DEI Task Force.
Strategy Updates:
2.4. Enhance Inclusive & Equitable Workplace Environment a. Develop and adopt a DEI statement for the organization. The Council adopted a DEI Statement on February 20, 2024 as part of the DEI Strategic Plan.
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Major City Goals
d. Complete a planning study for gender‐inclusive restroom and sleeping facilities for Fire Stations 3 & 4.
Process with design work pending results of study. This design is in progress, and construction is anticipated in FY 2026 when funding is appropriated.
2.8 Equity & Inclusion in Budgeting, Planning, Programming & Policymaking d. Provide financial assistance to qualified families through City funded scholarships for youth related programs such as: before/after‐school childcare, spring break & summer camps, swim lessons, and after‐ schoolsport programs. Parks and Recreation continuesto provide youth program and activity scholarships for qualifying families. This year, the maximum scholarship amount increased from $300 to $1,000 per child. A majority of the funds are allocated during spring enrollment.
Housing and Homelessness
Support the expansion of housing options for all, and continue to facilitate the production of housing, including the necessary supporting infrastructure, with an emphasis on affordable and workforce housing and accessibly connected development. Collaborate with local non‐profit partners, non‐governmental agencies, and the county, state, and federal governments to advocate for increased funding and implementation of comprehensive and effective strategies to prevent and reduce homelessness.
Strategy Updates:
3.1 – Housing Element Implementation
a. Implement the 6th Cycle Housing Element with focus on a missing middle housing program that enables "house‐scale" multi‐family housing opportunities (duplex, tri‐plex, bungalow court, etc.) in select neighborhoods. City staff have implemented a variety of existing and new state and local programs to promote small units and missing middle housing, including processing density bonus housing developments that increase density of both market and below market housing units, and processing ADU and JADUs and SB9 multi‐units developments in compliance with new state law. b. Initiate update to the Margarita Area Specific Plan to include more housing options of all types where appropriate. In progress. A scope of work was prepared by staff and the City Council authorized a Request for Proposals for the Margarita Area Specific Plan update on April 2, 2024. Consultant selection for this effort is anticipated in June 2024 with work commencing in Fiscal Year 2024‐25. c. Initiate update to the Airport Area Specific Plan to allow mixed‐use residential development, where appropriate and consistent with the County Airport Land Use Plan. In progress. A scope of work was prepared by staff and a consultant is actively working on updates to the Plan. d. Conduct a Study Session with the City Council to identify needs and opportunities across the housing spectrum, including various types of transitional and supportive housing options. Complete. On March 5, 2024, the City Council held a housing study session focusing on the housing continuum. As a result of this discussion, City Council requested thatstaff produce a matrix of the various strategiesthat were discussed at the Council meeting with information about each strategy. This matrix could inform future discussions about work programs and priorities for the Planning Division. e. Develop a scope of work for possible funding as part of the 2023‐25 Financial Plan Supplement to update the City’s parking requirements in consideration of best practices that support housing production.
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Major City Goals
Complete. Staff has prepared a scope of work and has identified the cost to complete the study will cost approximately $200,000, which was included as an SOBC request as part of the Supplement. f. Implement Below Market Rate Housing best practices including leveraging affordable housing fund revenues, down payment assistance programs, streamlined processing of loan documents and updated policies and procedures. The Housing team, in collaboration with the City’s third‐party “Below Market Rate Housing” administrator, Housekeys, continue to assist placing eligible applicants into units, including running an average of three opportunity drawings per month. This is in addition to transactions for multi‐ family apartment projects managed directly by partners PSHH and HASLO. A Downpayment Assistance Program was established for the Avila Ranch Development in accordance with the Development Agreement and five loans have been made to date. Three Below Market Rate Housing escrow closings were processed in January and February 2024, including the Maxine Lewis, Bridge Street and Broad Street Place projects. Regionally, the Housing and Infrastructure Plan was approved by the San Luis Obispo Council of Governments, that lists projects, many in SLO, that promote housing production as priorities.
On the State level, the City has earned a Pro‐housing jurisdiction designation and has applied for the first Prohousing Incentive Grant Program funding opportunity. The Prohousing status will also enables access to specific grants including infrastructure.
3.2 – Homelessness Response Strategic Plan (HRSP) Implementation a. Work collaboratively with County and key stakeholders to coordinate regional encampment and street outreach, including an expanded hotel voucher program to ensure a bridge for temporary emergency shelter. The City has implemented a hotel voucher program with the Community Action Partnership of SLO (CAPSLO) and has updated and coordinated encampment protocols including Compassionate Assistance, Mitigation and Prevention (CAMP) Standards, and joint notification with other agencies for encampments.
b. Increase homelessresponse communications, resource sharing and education including increased public use of Ask SLO app. Staff have revised and streamlined new ASK SLO protocol for homelessness response to coordinate all requests through the homelessness response team with specific private property inquiries going to code enforcement. On the outreach front, Homelessness Response staff have distributed over 1,000 updated pocket guides (in English and Spanish), provided direct outreach to downtown businesses with Community Service Officers, and responded to ten media and 27 community partner and business group invitations to speak to organizations about City Homelessness Response. A Homelessness Response Community Forum is planned for June 5, 2024. c. & d. Expand implementation of digital encampment management tool internally and for potential countywide use and leverage additional funding from other partner agencies for Mobile Crisis Unit (MCU)and Community Action Team (CAT); develop sustainable safe parking programs and pilot additional transitional shelter programs with regional partners. Staff has developed and implemented the Survey 123 App for multi‐departmental use in tracking encampment work and continue to work with regional partners to join regional platforms. A transition to utilize SLO County Licensed Psych Tech (LPT) resources for CAT and MCU teams is underway. Overnight Safe Parking was expanded from seven to twelve spots at the 40 Prado Homeless Services Center and a rotating overnight safe parking program has been developed and is awaiting implementation readiness through CAPSLO and funding through SLO County. e. Support County and regional partners in pursuing and implementing funding resources as appropriate given the City’s role for services, and transitional and permanent supportive housing, including Budget Page 76
Major City Goals
Encampment Resolution Funding and Project Homekey grants. The City and People’s Self‐Help Housing secured a $19.5 million Project Homekey grant in December 2023 to acquire and rehabilitate a Motel 6 to convert it into 75 permanent supportive housing units by the end of 2024. Additional funding sources include a commitment from the City for $400,000 in Affordable Housing Funds, Project Based Vouchers provided through the Housing Authority of San Luis Obispo (HASLO), capital and renovation funds provided through San Luis Obispo County, and private donation funds. Homelessness Response staff have also been working with the County of SLO through a state Encampment Resolution Funding award for the development of 34 transitional housing units at the Welcome Home Village site in addition to 46 permanent supportive housing units to house and provide wrap‐around services to unsheltered individuals, which received approval by the County Board of Supervisors on May 21, 2024. It is anticipated that a grant subrecipient agreement will be approved between the County and the City in June 2024 for outreach services and begin implementation in Fiscal Year 2024‐25. f. Continue to develop the City’s Safe Housing Outreach and Education Program, including preparation of a Council Memo on options for protecting renters, including homelessness prevention strategies. The City Council held a study session on March 5th, 2024 with Code Enforcement Staff presenting on safe housing and a renter protection memorandum is under development for delivery to City Council in Summer 2024. g. Monitor an update the two‐year Homelessness Response Plan to align with Countywide Plan to reduce homelessness. An update for the City’s Homelessness Response Strategic Plan is planned to be presented on the June 18, 2024 City Council Agenda.
3.3 – Environmental Clean‐up in Creeks and Open Space
a.b. Environmental clean‐ups in creeks, open space areas, City Parks and public spaces associated with abandoned personal property and trash. Staff have updated and streamlined encampment clean ups, including and revising protocols for internal and external requests and those coming through Ask SLO, in alignment with the City Compassionate Assistance Mitigation and Prevention (CAMP) standards. This includes the weekly San Luis Creek (BJBT) clean‐ups conducted by Ranger Service.
3.4 – Public Safety
a.b. Maintain the SLOPD bicycle patrol program as staffing allows and utilize the new Community Service Officer program to ensure effectiveness and improvements in quality‐of‐life surrounding homelessness issues in the downtown. The Police Department’s Community Action Team (CAT) continues to work closely with the Fire Department’s Mobile Crisis Unit to provide ongoing support to individuals suffering from mental health and behavioral health challenges.
Climate Action, Open Space, and Sustainable Transportation To proactively address the climate crisis, continue to update and implement the Climate Action Plan for carbon neutrality, including preservation and enhancement of open space and the urban forest, alternative and sustainable transportation, and planning and implementation for resilience.
Strategy Updates:
4.1. Implement the Climate Action Plan and Lead by Example 2023‐25 Work Plans Fleet is continuing to source all‐electric vehicles for every fleet replacement or addition that can utilize this emissions‐free technology to complete work tasks. We now have ten (10) F150 EV’s and five (5) EV Budget Page 77
Major City Goals
cars performing daily operations, with an additional EV truck and two (2) EV Police vehicles on‐order. Plans are underway to order more when CIP funding is approved, as many gasoline‐powered City vehicles are ready for replacement with EVs. Fleet has led the way on internal‐use charger implementation with 6 level‐2’s at the Corporation Yard. Many departments are also embracing City‐vehicle EV charging: Parking now has two (2) stand‐alone units, the Water Treatment Plant has one unit and Fire is installing one. The Parks & Recreation and Utilities offices, Sinsheimer Park and the new PD Admin building are all slated for charger installations in the near future, and all either have an EV, or have them on order.
As a partner of the City’s 10 Tall initiative, the Public Works Department is responsible for planting 1,000 of the 10,000 new trees, as well as continue to care for the existing urban forest. The department continues to inventory newly planted trees in developments, replace trees with health and hazard issues and partner with community groups such as ECO SLO to plant new trees in parks and in the public right‐ of‐way.
4.2 Sustain, Manage, and Enhance the City’s Greenbelt and Make Progress on Planting 10,000 trees by 2035
b. Complete installation of adopted trail systems at the Irish Hills Natural Reserve and at Miossi Open Space. The Bog Thistle connector, along with the re‐route extension of King Trail were completed within the Irish Hills Natural Reserve. Ranger Service continues the design process for Hi Bar extension at Miossi Open Space and the Waddell parcel of the Irish Hills Natural Reserve, which includes the botany survey and eventual trail construction.
c. Identify and implement trail alignment revisions, if feasible, and other solutions to reduce erosion and wet weather closures and address trail user safety and enjoyment at Reservoir Canyon Natural Reserve.
Ranger Service has identified a new trail alignment from the Lizzie Street trailhead to the summit; however, implementation has been delayed due to the effects of the Lizzie Fire on portions of this area.
This project is expected to commence in late spring and continue through summer 2024. d. Continue Open Space education activities including the "hikes with experts" series, Junior Ranger Camp, and ongoing public information and programming, with emphasis on equity and equitable access. Ranger Service has continued monthly educational hikes for the community which included bi‐lingual Spanish translation hike, and a special autism group hike, three total (spring break and two summer) sessions of junior ranger camp, educational outreach at schools and Farmers Market booths. e. Continue implementation by Ranger Service staff of all Open Space maintenance activities including establishing a replacement schedule for Open Space trailhead improvements, as well as replacement or repair of Open Space fencing currently in disrepair, all asset forth in the adopted Open Space Maintenance Plan. Ranger Service continuesto implement maintenance activities, including the replacement and repair of fencing, set forth in the adopted Open Space Maintenance Plan across all twelve Open Space properties.
f. Continue ongoing Ranger Service patrol of Open Space areas ensuring compliance with the City Open Space regulations, the safety of users, and protection of natural resources values and functions. Routine patrol of the twelve Open Space areas by Ranger Service is ongoing. g. Implement priority projects at Righetti Hill Open Space consistent with the Conservation Plan (if adopted in May 2023). Ranger Service completed the initial Righetti Hill Summit Trail. The design of the Loop Trail has been approved and is anticipated to start in summer 2024.
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Major City Goals
h. Continue to work with community groups on tree planting in creeks and open space areas toward the goal of 10,000 trees by the year 2035 as called for in CAP Natural Solutions task 2.1.A. Parks & Recreation continue to tree planting efforts with volunteers and other community groups throughout city creeks and open spaces. Notable accomplishments were plantings at Terrace Hill and Cerro San Luis (100 trees planted to date) that occurred in January and February 2024. j. Continue to implement rehabilitation efforts throughout the City's open space network where storm damage has occurred to trails, access roads, and other open space infrastructure. There are still ongoing minor projects within Miossi open space, Waddel, Johnson Ranch, and Reservoir Canyon properties.
Larger projects are being conducted at Cerro San Luis and Irish Hills for trail repairs. k. Continue partnership with City Farm SLO to install site security and access measures and to implement California Farmland Conservancy Program grant scope of work.
4.3. Preserve and Enhance Convenient and Equitable Alternative and Sustainable Transportation Options
Progress has been in completing the Active Transportation Plan (ATP) Tier 1 Network including near completion of the North Chorro Neighborhood Greenway and the Santa Barbara Street protected bike lanes as part of the 2023 Arterials Paving Project. In addition, several new projects have been initiated including preparation of a draft corridor concept plan and initiating public outreach for the Foothill Complete Street Project and initiating planning for the South Broad Complete Street Project.
The Prado Creek Bridge Replacement project continuestowardsfinal design, with right‐of‐way acquisition and utility coordination as the critical path items. Construction is projected to begin in Fall 2025, and will add dedicated cycle and pedestrian facilities, as well as a protected style intersection. Additional vehicular lanes will also be added in order to accommodate future growth within the City.
The existing at‐grade interchange at Prado Road and Highway 101 is proposed to be replaced with an elevated structure. The Prado Interchange project will consist of an overcrossing over Highway 101, elevated northbound ramps, widening of Prado Road and re‐alignment of Elks Lane. Separated cycle and pedestrian facilities will be added, providing new connectivity across town for a truly time saving multi‐ modal link.
Progress has also been made in exploring a bikeshare program in partnership with Cal Poly University and drafting a Request for Proposals for Council’s consideration. In addition, staff published the first iteration of the Active Transportation Plan Report Card, which details City progress on eight performance measures in the Active Transportation Plan.
In February 2024, the City finalized SLO Transit’s Transit Innovation Study which evaluated the feasibility and potential impact of technology and service changes to improve transit service delivery in the community. Staff is developing an implementation for the recommended actions, including pursuing grant funding for technology upgrades, transit pass program improvements, and service enhancements.
Recommendations like more frequent service and bus stop amenity improvements will also be analyzed further and possibly incorporated into future operational and capital plans through the Short Range Transit Plan (SRTP) update that is currently underway. A draft SRTP report will be ready for the public review by Fall 2024.
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Major City Goals
Council approved a pilot program for discounted K‐12 student passes that will be in effect through June 2025 giving staff time monitor program adoption and impacts to the Transit Fund. Staff will return to Council with a recommendation to either formalize the program and/or make further changes to it depending on these factors.
In March 2024, City Council adopted SLO Transit’s Zero‐Emission Rollout Plan (Rollout Plan) as mandated by the state to comply with Innovative Clean Transit regulations. The Rollout Plan details SLO Transit’s transition plan to zero‐emission vehicle operations based on the state’s purchasing timeline requirements. SLO Transit is ahead ofschedule with two battery electric buses already in service and eight more on order. Staff is pursuing additional grant funding opportunities to replace the remaining diesel‐ powered buses.
The charging infrastructure project at the bus yard is nearing completion with two charging stations already installed and commissioned. The project includes all underground infrastructure needed to support a full fleet transition to zero‐emission technologies. The City is also working on a solar array project which will include installations at the bus yard. The solar array project is currently in the design phase.
4.4. Increase Community Resilience
Implementation of the Mid Higuera Bypass project is projected to begin in Spring 2025, which will provide flood control between the Marsh and Madonna Interchanges. Laguna Lake dredging is being re‐evaluated after the completion of the Prefumo Creek Clearing project, as the creek now discharges into the deepest section of the creek. Staff plans to extend permits, perform a bathymetric survey and plan work for future projects. The City’s annual silt removal sites are being re‐evaluated as the current suite of permits expire, and the City is working with regulatory agencies in order to expand the scope of silt removal projects City‐ wide. Work is planned this summer at the Tank Farm and Hollyhock intersection.
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Table 8.1 Major City Goal Tracker
MCG Strategy
Strategic
Approach # Task/ Action Responsible Department(s)
Original
Completion
Date
Updated
Completion
Date Status
1.1 For All Members of the Community
1 ER,CV & FS Sustainable, Diverse, and Inclusive Economic Development
1.1 a. Implement the relevant actions in the updated Economic Development Strategic Plan (EDSP) focusing on those relevant to Economic Resiliency, Cultural Vitality and Fiscal Sustainability.
ADM (ED&T) Ongoing Ongoing
2 ER,CV & FS Sustainable, Diverse, and Inclusive Economic Development
1.1 b. Continue to partner with the Office of Sustainability to implement the economic development related actions in the Climate Action Plan (CAP) as well as the sustainability related actions in the updated Economic Development Strategic Plan (EDSP)
ADM
(ED&T/Sustainability) Ongoing Ongoing
3 ER,CV & FS Sustainable, Diverse, and Inclusive Economic Development
1.1 c. Continue to partner with the Office of Diversity, Equity and Inclusion (DEI) to implement the economic development related actions in the DEI major City goal and planned DEI strategic framework as well as the DEI related actions in the updated Economic Development Strategic Plan (EDSP)
ADM (ED&T/DEI) Ongoing Ongoing
4 ER,CV & FS Sustainable, Diverse, and Inclusive Economic Development
1.1 d. Continue to monitor local labor participation in major City projects and adjust the City's efforts as needed to ensure local labor participation through the use of Community Workforce Agreements and other similar tools. Work to finalize CWA for Prado Overpass and Public Safety Center.
PW/Util Ongoing Ongoing
5 ER,CV & FS Sustainable, Diverse, and Inclusive Economic Development
1.1 e. Continue to update the employment scorecard and the economic activity scorecard.
ADM
(ED&T)/CDD/PW/FIN Ongoing Ongoing
6 1.2 Business Support
7 ER,CV & FS Business Support 1.2
a. Continue activations, promotions and programs like "Buy Local Bonus", "Eat Local Bonus" and "Shop local" to build economic resiliency through out the City and including downtown.
ADM (ED&T) Ongoing Ongoing
8 ER,CV & FS Business Support 1.2
b. Continue to work with partners at the Chamber, REACH, Cal Poly, Downtown SLO, SCORE and others to support the business
community through retention, creation, attraction, education and communication efforts.
ADM (ED&T) Ongoing Ongoing
9 ER,CV & FS Business Support 1.2 c. Continue to promote the City to tourists, visitors and locals through the efforts of the TBID and the PCC. ADM (ED&T) Ongoing Ongoing 10 ER,CV & FS Business Support 1.2
d. Continue to focus on efficiency and transparency in the permitting process through implementation of new tools, performance management reporting, and enhanced customer transparency tools.
Report recurring performance measures or permit processing times during General Plan Annual Report.
CDD Ongoing Ongoing
11 ER,CV & FS Business Support 1.2
e. Ensure broad and inclusive engagement in area and specific plans updated by the Community Development Department to represent the needs of local businesses.
ADM (ED&T)/CDD Ongoing Ongoing
12 ER,CV & FS Business Support 1.2
f. Conduct outreach and engagement with property owners and businesses in the Upper Monterey Special Focus Area to confirm scope in pursuing an area plan consistent with Land Use Element Policy 8.2.2.
CDD FY25 Q4 FY25 Q4
13 ER,CV & FS Business Support 1.2 g. Continue to support new and expanded private childcare options through the use of grant funding and other programs. ADM (ED&T) Ongoing Ongoing 14 ER,CV & FS Business Support 1.2
h. Continue to support the childcare options for school age children through the City's own programs and programs in conjunction with other partners.
P&R Ongoing Ongoing
15 ER,CV & FS Business Support 1.2
I. Proactively evaluate and implement after briefing council on opportunities to partner with Cal Poly, San Luis Coastal Unified School District and other major employers for employer supported childcare programs.
P&R Ongoing Ongoing
16 ER,CV & FS Business Support 1.2 j. Represent the interests of the business community during the implementation of the broadband strategic plan. ADM (ED&T) Ongoing Ongoing 17 1.3 Arts & Culture Support
18 ER,CV & FS Downtown Vitality 1.3 a. Continue to partner with Downtown SLO to ensure the promotion, resiliency, growth, and vitality of the Downtown. ADM (ED&T) Ongoing Ongoing 19 ER,CV & FS Downtown Vitality 1.3
b. Continue to financially and operationally support Downtown SLO during the winter holidays including incentivizing private participation through the matching program.
ADM (ED&T) Ongoing Complete
20 ER,CV & FS Downtown Vitality 1.3 c. Continue to support the Downtown SLO programs like Clean & Safe, the Ambassadors and homelessness support. ADM (ED&T) Ongoing Ongoing 21 ER,CV & FS Downtown Vitality 1.3
d. Develop a Council report and Study Session on downtown vacancies, the status and possible options to address any issues identified.
ADM (ED&T) FY24 Q2 Ongoing
Budget Page 81
MCG Strategy
Strategic
Approach # Task/ Action Responsible Department(s)
Original
Completion
Date
Updated
Completion
Date Status
22 ER,CV & FS Downtown Vitality 1.3 Develop an implementation plan for the recently adopted Access and Parking Management Plan and begin execution of the plan. PW Ongoing Ongoing 23 ER,CV & FS Downtown Vitality 1.3 f. Begin construction of the Cultural Arts District Parking Structure. PW FY24 Q2 Complete 24 ER,CV & FS Downtown Vitality 1.3 g. Replace the existing Mission Plaza Restrooms in compliance with Mission Plaza Concept Plan and Council Direction. PW Ongoing Ongoing 25 1.4 Downtown Vitality
26 ER,CV & FS Support Arts and Culture 1.4 a. Continue to work with our community partners to ensure the Cultural Vitality of the City.
P&R/ADM (NR&S)/ADM
(ED&T) Ongoing Ongoing
27 ER,CV & FS Support Arts and Culture 1.4 b. Continue to execute the City's public art master plan. P&R Ongoing Ongoing 28 ER,CV & FS Support Arts and Culture 1.4
c. Ensure that the City promotes the various City and privately owned art installations through programs like the public art promotional plan developed by the PCC.
ADM (ED&T) Ongoing Ongoing
29 ER,CV & FS Support Arts and Culture 1.4
d. Continue to financially support the Arts and Cultural Activities of the City through the PCC's GIA program and the additional grant funding via the PCC.
ADM (ED&T) Ongoing Ongoing
30 ER,CV & FS Support Arts and Culture 1.4 e. Continue the citywide banner program. ADM (ED&T) Ongoing Ongoing 31 ER,CV & FS Support Arts and Culture 1.4
f. Continue to support the preservation of the City's adobes, including work on the La Loma Adobe through a phased approached intended to ensure that the structure is ready for active stabilization efforts by 2025.
ADM (NR&S) FY25 Q4 FY25 Q4
32 ER,CV & FS Support Arts and Culture 1.4 g. Initiate implementation of the consultant recommended phased approach to update the City's historic resources inventory. CDD FY24 Q2 Complete 33 ER,CV & FS Support Arts and Culture 1.4
h. Develop a Council Memorandum on the current base level of economic support for Arts and Cultural activities across the various departments in the City.
ADM (ED&T) FY24 Q2 Complete
34 1.5 Practicing Fiscal Responsibility
35 ER,CV & FS Ensuring Fiscal Responsibility and Sustainable City Operations
1.5 b. Conduct a Study Session on alternative capital project delivery options and determine whether Council wishes to proceed with a Charter Amendment.
PW/Util Ongoing FY24 Q4
36 ER,CV & FS Ensuring Fiscal Responsibility and Sustainable City Operations
1.5 c. Implement a City fee program update. CSG FY24 Q4 FY24 Q4 37 ER,CV & FS Ensuring Fiscal Responsibility and Sustainable City Operations
1.5 Continue to implement and enhance the City's sound financial management practices to support stability of the organization and services provided to the community.
Fin FY24 Q3 Ongoing
38 ER,CV & FS Ensuring Fiscal Responsibility and Sustainable City Operations
1.5 d. Implement a Development impact fee (AB1600) study and update. CSG FY24 Q3 FY24 Q4 39 ER,CV & FS Ensuring Fiscal Responsibility and Sustainable City Operations
1.5 e. Monitor Public Banking advances and alert the City Council to major changes. Fin Ongoing Ongoing
40 ER,CV & FS Ensuring Fiscal Responsibility and Sustainable City Operations
1.5 f. Continue to support and prioritize employee development and growth through investing in resources to train, develop, and onboard new and transitioning employees.
HR/All Ongoing Ongoing
41 ER,CV & FS Ensuring Fiscal Responsibility and Sustainable City Operations
1.5 g. Continue to support employees in managing their workloads by reviewing and prioritizing work efforts, goals, and balancing tradeoffs for a new workload.
HR/All Ongoing Ongoing
42 ER,CV & FS Ensuring Fiscal Responsibility and Sustainable City Operations
1.5 h. Continue to evaluate and adjust internal meetings to create more effective meeting practices. HR/All Ongoing Ongoing
43 ER,CV & FS Ensuring Fiscal Responsibility and Sustainable City Operations
1.5 i. Continue promoting cross-department communication and collaboration amongst employees. HR/All Ongoing Ongoing 44 ER,CV & FS Ensuring Fiscal Responsibility and Sustainable City Operations
1.5 j. Continue to evaluate and enhance the training and usability of Oracle Cloud, the City's Enterprise Resource Planning/Human Capital Management software.
IT/Fin/HR Ongoing Ongoing
45 2.1 Establish Office of DEI
46 DEI Operationalize Office of DEI 2.1
a. Based on the completion of the DEI Strategic Plan, determine the ongoing support structure needed in the Office of DEI to optimally deliver organizational and community programs and services.
Admin-DEI Ongoing Ongoing
47 DEI Operationalize Office of DEI 2.1 b. Work with Cal Poly and Cuesta to host interns. Admin-DEI Ongoing Ongoing 48 DEI Operationalize Office of DEI 2.1
c. Further develop purpose, role, activities, and enhance impact of DEI Employee Committee, including equal standing and priority to tasks and responsibilities assigned to the members (e.g. ERGs, newsletters, cultural celebrations, trainings, internal communication, public web pages, etc.).
Admin-DEI Ongoing Complete
49 DEI Operationalize Office of DEI 2.1 d. Continue to support and act as the staff liaison to the Human Relations Commission (HRC). Admin/DEI Ongoing Complete
50 DEI Operationalize Office of DEI 2.1
e. Continue to provide grant support to the HRC for DEI High Impact Grants, Community Development Block Grants and Human Services Grants and complete necessary follow up and reporting with grant recipients.
Admin-DEI Ongoing Complete
Budget Page 82
MCG Strategy
Strategic
Approach # Task/ Action Responsible Department(s)
Original
Completion
Date
Updated
Completion
Date Status
51 2.2 Develop & Implement DEI Strategic Plan
52 DEI Develop & Implement DEI Strategic Plan 2.2
a. Complete a DEI Strategic Plan for comprehensive DEI initiatives and programming for the organization and community based on needs, priorities, and resource assessments.
Admin-DEI FY24 Q3 Complete
53 DEI Develop & Implement DEI Strategic Plan 2.2 b. Implementation of prioritized programs as outlined in the DEI Strategic Plan within available resources. Admin-DEI Ongoing Ongoing 54 2.3 Workforce Recruitment & Retention
55 DEI
Foster and Promote Equitable Recruiting,
Hiring, Retention, and Promotion Practices
2.3 a. Continue to enhance job descriptions and recruiting materials such as materials in Spanish or in different formats to easy access. HR Ongoing Ongoing 56 DEI
Foster and Promote Equitable Recruiting,
Hiring, Retention, and Promotion Practices
2.3 b. Assess and develop enhancements processes such as implementing DEI-focused screening and interviewing trainings to personnel and interview panels.
HR Ongoing FY25 Q2
57 DEI
Foster and Promote Equitable Recruiting,
Hiring, Retention, and Promotion Practices
2.3 c. Create and rollout DEI-focused trainings for employees. HR Ongoing FY25 Q2 58 DEI
Foster and Promote Equitable Recruiting,
Hiring, Retention, and Promotion Practices
2.3 d. Examine policies and programs to support primary caretakers. HR Ongoing Ongoing 59 DEI
Foster and Promote Equitable Recruiting,
Hiring, Retention, and Promotion Practices
2.3 e. Continue communicating childcare options and resources for City employees; additional to First 5 findings. Explore flex schedules, job share, remote options, etc.
HR Ongoing FY25 Q2
60 2.4 Inclusive & Equitable Workplace
61 DEI
Enhance Inclusive & Equitable Workplace
Environment
2.4 a. Develop and adopt a DEI statement for the organization. Admin-DEI FY24 Q1 Complete 62 DEI
Enhance Inclusive & Equitable Workplace
Environment
2.4 b. Develop and implement a DEI module in new hire onboarding process.
HR Ongoing FY25 Q2
63 DEI
Enhance Inclusive & Equitable Workplace
Environment
2.4 c. Provide DEI-related training for all staff of all levels (Council, Commission, Advisory Board, Directors, Managers, Staff, etc.). Admin-DEI/HR Ongoing Ongoing 64 DEI
Enhance Inclusive & Equitable Workplace
Environment
2.4 d. Complete a planning study for gender-inclusive restroom and sleeping facilities for Fire Stations 3 & 4. Process with design work pending results of study.
Public Works/Fire Ongoing Ongoing
65 2.5 Community-based Policing & Restorative Practices 66 DEI
Community-based Policing & Restorative
Practices
2.5 a. Promote DEI best practices in Police Department (PD) recruiting and hiring efforts. Admin-DEI/PD/HR Ongoing Ongoing
67 DEI
Community-based Policing & Restorative
Practices
2.5 b. Work in partnership with Facilities and PD to ensure new public safety building design is equitable and inclusive for the community and all department employees.
Admin/PD/Public Works Ongoing Ongoing
68 DEI
Community-based Policing & Restorative
Practices
2.5 c. Continue to work with community partners (PAC and Roundtable) to give the community a voice in policing and that 21st Century Policing Recommendations are implemented where possible.
PD Ongoing Ongoing
69 DEI
Community-based Policing & Restorative
Practices
2.5 d. Use Community partnerships to help build a 5-year strategic plan to create transparency and legitimacy. PD Ongoing Complete 70 2.6 Cal Poly & Cuesta Partnerships
71 DEI
Enhance and Expand Cal Poly & Cuesta College
Partnerships and Educational Opportunities
2.6 a. Establish bimonthly collaborative and informative meetings with Cal Poly Office of University Diversity & Inclusion and Cuesta College Office of Student Equity & Special Programs to further explore partnerships around education and training.
Admin-DEI Ongoing Ongoing
72 DEI
Enhance and Expand Cal Poly & Cuesta College
Partnerships and Educational Opportunities
2.6 b. Utilize the Assistant VP for Strategic Planning and Network at Cal Poly OUDI to research best practices, grants for internships, programs, outreach, innovative practices, etc.
Admin-DEI Ongoing Ongoing
73 DEI
Enhance and Expand Cal Poly & Cuesta College
Partnerships and Educational Opportunities
2.6 c. Host City/Cal Poly quarterly roundtable (City & Cal Poly leadership, DEI Employee Committee, HRC, Cal Poly students, DEI Leaders, Cuesta College, etc.) regarding community/student experience, relationship-building and partnership programs.
Admin-DEI Ongoing Ongoing
74 DEI
Enhance and Expand Cal Poly & Cuesta College
Partnerships and Educational Opportunities
2.6 d. Explore and develop shared multicultural programming, activities, and events with Cal Poly, Cuesta College, and Non-profit partners through a pilot and/or pop up multicultural center experience.
Admin-DEI Ongoing Complete
75 DEI
Enhance and Expand Cal Poly & Cuesta College
Partnerships and Educational Opportunities
2.6 e. Contract to develop a feasibility study for a multicultural center. Admin-DEI Ongoing Ongoing 76 2.7 Access, Inclusion, Support for Underrepresented Communities 77 DEI
Strengthen Public Access and Engagement
through Transformational Strategies
2.7 a. Support the development and implementation of the Broadband Strategic Plan to ensure access is equitable and pursue funding to fill gaps.
Admin-DEI/IT Ongoing Ongoing
Budget Page 83
MCG Strategy
Strategic
Approach # Task/ Action Responsible Department(s)
Original
Completion
Date
Updated
Completion
Date Status
78 DEI
Strengthen Public Access and Engagement
through Transformational Strategies
2.7 b. Continue to provide Community Academy program in even numbered years including application outreach to
underserved/underrepresented communities.
Admin-DEI Ongoing Complete
79 DEI
Strengthen Public Access and Engagement
through Transformational Strategies
2.7 c. Complete training for applicable staff on the City's updated Public Engagement & Noticing (PEN) to ensure diverse participation. Admin-DEI Ongoing Ongoing 80 2.8 Community Education & Programming
81 DEI
Equity & Inclusion in Budgeting, Planning,
Programming & Policymaking
2.8 a. Review and embed DEI language into existing policies and procedures, codes of conduct within facilities, parks, programs, events, and rentals for services provided to the community.
Admin-DEI Ongoing Ongoing
82 DEI
Equity & Inclusion in Budgeting, Planning,
Programming & Policymaking
2.8 b. Include DEI Manager Financial Planning Steering Committee meetings.
Admin-DEI Ongoing Ongoing
83 DEI
Equity & Inclusion in Budgeting, Planning,
Programming & Policymaking
2.8 c. Edit existing and create new policies and procedures that reflect a DEI lens for internal processes to ensure all City Departments support the DEI MCG.
Admin-DEI Ongoing Ongoing
84 DEI
Equity & Inclusion in Budgeting, Planning,
Programming & Policymaking
2.8 d. Provide financial assistance to qualified families through City funded scholarships for youth related programs such as: before/afterschool childcare, spring break & summer camps, swim lessons, and after-school sport programs.
Parks & Rec Ongoing Ongoing
85 3.1 Implement Housing Element
86 HH Housing Element Implementation 3.1
a. Initiate a missing middle housing program that enables "housescale" multi-family housing opportunities (duplex, tri-plex, bungalow court, etc.) in neighborhoods where existing infrastructure (e.g. arterial and collector streets) can support additional infill and intensification and promote complete neighborhoods.
CDD; Attorney FY25 Q4 FY25 Q4
87 HH Housing Element Implementation 3.1
b. Initiate an update to the Margarita Area Specific Plan to include more housing options of all types (affordable, multi-family, mixeduse) on undeveloped land, and work with property owners on a plan for the completion of the Prado Road extension to Broad Street.
CDD; PW Transportation FY25 Q4 FY25 Q4
88 HH Housing Element Implementation 3.1
c. Initiate an update to the Airport Area Specific Plan to allow mixeduse residential development, where appropriate and consistent with the County Airport Land Use Plan
CDD; Attorney FY25 Q4 FY25 Q4
89 HH Housing Element Implementation 3.1
d. Conduct a Study Session with the City Council to identify needs and opportunities across the housing spectrum, including various types of transitional and supportive housing options.
CDD FY24 Q3 Complete
90 HH Housing Element Implementation 3.1
e. Develop a scope of work for possible funding as part of the 2023- 25 Financial Plan Supplement to update the City's parking requirements in consideration of best practices that support housing production. Strategies may include lowering parking minimums, establishing parking maximums, reducing parking requirements in areas close to services and transit facilities, and other proven strategies.
CDD; PW Transportation;
PW Parking Services FY24 Q3 Complete
91 HH Housing Element Implementation 3.1
f. Implement Below Market Rate Housing best practices including leveraging affordable housing fund revenues, down payment assistance programs, streamlined processing of loan documents, and updated policies and procedures.
CDD; Attorney FY24 Q4 FY24 Q4
92 3.2 Implement Inclusionary Housing Ordinance
93 HH
Homelessness Response Strategic Plan
Implementation
3.2 a. Work collaboratively with County and key stakeholders to coordinate regional encampment and street outreach, including an expanded hotel voucher program to ensure a bridge for temporary emergency shelter
CDD; Attorney FY24 Q4 FY24 Q4
94 HH
Homelessness Response Strategic Plan
Implementation
3.2 b. Increase homelessness response communications, resource sharing, and education, including increased public use of Ask SLO app CDD; Admin FY24 Q4 FY24 Q4 95 HH
Homelessness Response Strategic Plan
Implementation
3.2 c. Expand implementation of digital encampment management tool internally and for potential countywide use or explore using other countywide systems shared with other regional partners.
CDD; PW; P&R; PD; Fire FY24 Q4 FY24 Q4
96 HH
Homelessness Response Strategic Plan
Implementation
3.2 d. Leverage additional funding from other partner agencies for Mobile Crisis Unit (MCU) program, and Community Action Team (CAT) and service expansion; develop sustainable safe parking programs; and pilot additional transitional shelter programs with regional partners
CDD; PD; Fire FY24 Q4 FY24 Q4
97 HH
Homelessness Response Strategic Plan
Implementation
3.2 e. Support County and regional partners in pursuing and implementing funding resources as appropriate given the City's role for services, and transitional and permanent supportive housing, including Encampment Resolution Funding and Project Homekey grants
CDD; Admin FY24 Q4 FY24 Q4
Budget Page 84
MCG Strategy
Strategic
Approach # Task/ Action Responsible Department(s)
Original
Completion
Date
Updated
Completion
Date Status
98 HH
Homelessness Response Strategic Plan
Implementation
3.2 f. Continue to develop the City's Safe Housing Outreach and Education Program, including preparation of a Council Memo on options for protecting renters, including homelessness prevention strategies.
Attorney; CDD FY24 Q4 FY24 Q4
99 HH
Homelessness Response Strategic Plan
Implementation
3.2 g. Monitor and update the two-year Homelessness Response Strategic Plan to align with Countywide Plan to Reduce
Homelessness, other regional and state opportunities, and in advance of next City financial plan
CDD FY25 Q2 FY25 Q2
100 3.3 Below Market Rate Portfolio Management
101 HH
Environmental Clean-up in Creeks and Open
Space
3.3 a. Environmental clean-ups in creek and open space areas associated with abandoned personal property and trash. (Funding approved on March 7, 2023)
P&R FY25 Q4 FY25 Q4
102 HH
Environmental Clean-up in Creeks and Open
Space
3.3 b. Environmental clean-ups in City Parks and public spaces associated with abandoned personal property and trash. (Funding approved on March 7, 2023)
PW FY25 Q4 Ongoing
103 3.4 Financial Management
104 HH Public Safety 3.4 a. Maintain SLOPD bike patrol program as staffing allows PD FY25 Q4 Ongoing 105 HH Public Safety 3.4
b. Implement the new Community Service Officer program over the next fiscal year to ensure effectiveness and improvements in quality of life surrounding homelessness issues in the downtown (funding approved on March 7, 2023)
PD FY24 Q1 Complete
106
4.1 Implement the Climate Action Plan and Lead by Example 2023-25 Work Plans
107 CA, OS, ST
Implement the Climate Action Plan and Lead
by Example 2023-25 Work Plans
4.1 a. Continue to install electric vehicle chargers and replace fleet vehicles as needed with all-electric alternatives as called for by CAP Lead by Example task 1.1.A .
Public Works Ongoing Ongoing
108 CA, OS, ST
Implement the Climate Action Plan and Lead
by Example 2023-25 Work Plans
4.1 b. Continue to electrify the bus fleet as called for by CAP Lead by Example task 1.1.A. Public Works Ongoing Ongoing
109 CA, OS, ST
Implement the Climate Action Plan and Lead
by Example 2023-25 Work Plans
4.1 c. Complete installation of solar panels at the City's Bus Yard, Fire Station 1, and Sinsheimer Pool as called for by CAP Lead by Example task 1.1.A.
Public Works /
Administration
FY25 Q2 FY25 Q2
110 CA, OS, ST
Implement the Climate Action Plan and Lead
by Example 2023-25 Work Plans
4.1 e. Apply the "Sustainable SLO" mark to City infrastructure and assets and conduct a general awareness outreach program as funding and staff resources allow, as called for by CAP Lead by Example task
1.1.B.
Administration Ongoing Ongoing
111 CA, OS, ST
Implement the Climate Action Plan and Lead
by Example 2023-25 Work Plans
4.1 f. Provide ongoing support for Central Coast Community Energy Policy and Operations Board Members, and engage in staff level policy and program development, as called for by CAP Clean Energy task 1.1.A
Administration Ongoing Ongoing
112 CA, OS, ST
Implement the Climate Action Plan and Lead
by Example 2023-25 Work Plans
4.1 g. Pursue funding, and if feasible, create the "Green and Healthy Buildings” service to educate the community and connect building owners with resources, federal funding, incentives, financing, contractors, and streamlined permitting as called for by CAP Green Buildings Task 2.1.B, 2.1.C, and 2.1.D, and CASE Program HE-4.7.
Administration / CDD Ongoing Ongoing
113 CA, OS, ST
Implement the Climate Action Plan and Lead
by Example 2023-25 Work Plans
4.1 h. Continue to monitor impacts to Municipal Code 8.11 (All-Electric New Buildings), and if necessary return to Council with an alternative approach to achieving the City's climate action goals as they relate to new buildings.
Administration / CDD Complete Complete
114 CA, OS, ST
Implement the Climate Action Plan and Lead
by Example 2023-25 Work Plans
4.1 i. Conduct a study session, and pending Council direction, develop an equitable framework for cost effective building electrification retrofit policies, with an initial focus on additions and alterations, as called for by CAP Green Buildings Task 2.1.E.
Administration / CDD Ongoing Ongoing
115 CA, OS, ST
Implement the Climate Action Plan and Lead
by Example 2023-25 Work Plans
4.1 j. Continue SB 1383 implementation by developing an inspection and enforcement program and complying with procurement
requirements for organic waste and paper as called for in CAP Circular Economy task 1.1.A and 1.1.B.
Utilities Ongoing Ongoing
116 CA, OS, ST
Implement the Climate Action Plan and Lead
by Example 2023-25 Work Plans
4.1 k. Continue to support the IWMA on facilitating the City's edible food recovery programs as called for in CAP Circular Economy task 1.1.C,
1.2.A, and 1.3.A.
Utilities Ongoing Ongoing
117 CA, OS, ST
Implement the Climate Action Plan and Lead
by Example 2023-25 Work Plans
4.1 Sustain, Manage, and Enhance the City's Greenbelt and Make Progress on Planting 10,000 trees by 2035
Public Works /
Administration
Ongoing Ongoing
118
4.2 Sustain, Manage, and Enhance the City's Greenbelt and Make Progress on Planting 10,000 trees by 2035
119 CA, OS, ST
Sustain, Manage, and Enhance the City's
Greenbelt and Make Progress on Planting
10,000 trees by 2035
4.2 a. Actively implement opportunities to purchase open space lands and permanent land conservation agreements in furtherance of the City's Greenbelt Protection Program as called for by CAP Natural Solutions task 1.1.A.
Administration Ongoing Ongoing
120 CA, OS, ST
Sustain, Manage, and Enhance the City's
Greenbelt and Make Progress on Planting
10,000 trees by 2036
4.2 b. Complete installation of adopted trail systems at the Irish Hills Natural Reserve and at Miossi Open Space. Parks and Recreation Ongoing Ongoing Budget Page 85
MCG Strategy
Strategic
Approach # Task/ Action Responsible Department(s)
Original
Completion
Date
Updated
Completion
Date Status
121 CA, OS, ST
Sustain, Manage, and Enhance the City's
Greenbelt and Make Progress on Planting
10,000 trees by 2037
4.2 c. Identify and implement trail alignment revisions, if feasible, and other solutions to reduce erosion and wet weather closures and address trail user safety and enjoyment at Reservoir Canyon Natural Reserve.
Parks and Recreation Ongoing Ongoing
122 CA, OS, ST
Sustain, Manage, and Enhance the City's
Greenbelt and Make Progress on Planting
10,000 trees by 2038
4.2 d. Continue Open Space education activities including the "hikes with experts" series, Junior Ranger Camp, and ongoing public information and programming, with emphasis on equity and equitable access.
Parks and Recreation /
Administration
Ongoing Ongoing
123 CA, OS, ST
Sustain, Manage, and Enhance the City's
Greenbelt and Make Progress on Planting
10,000 trees by 2039
4.2 e. Continue implementation by Ranger Service staff of all Open Space maintenance activities including establishing a replacement schedule for Open Space trailhead improvements, as well as replacement or repair of Open Space fencing currently in disrepair, all as set forth in the adopted Open Space Maintenance Plan Parks and Recreation Ongoing Ongoing
124 CA, OS, ST
Sustain, Manage, and Enhance the City's
Greenbelt and Make Progress on Planting
10,000 trees by 2040
4.2 f. Continue ongoing Ranger Service patrol of Open Space areas ensuring compliance with the City Open Space regulations, the safety of users, and protection of natural resources values and functions.
Parks and Recreation Ongoing Ongoing
125 CA, OS, ST
Sustain, Manage, and Enhance the City's
Greenbelt and Make Progress on Planting
10,000 trees by 2041
4.2 g. Implement priority projects at Righetti Hill Open Space consistent with the Conservation Plan (if adopted in May 2023). Parks and Recreation Ongoing Ongoing 126 CA, OS, ST
Sustain, Manage, and Enhance the City's
Greenbelt and Make Progress on Planting
10,000 trees by 2042
4.2 h. Continue to work with community groups on tree planting in creeks and open space areas toward the goal of 10,000 trees by the year 2035 as called for in CAP Natural Solutions task 2.1.A.
Administration / Parks
and Recreation
Ongoing Ongoing
127 CA, OS, ST
Sustain, Manage, and Enhance the City's
Greenbelt and Make Progress on Planting
10,000 trees by 2043
4.2 i. Continue to expand climate-informed maintenance practices in the Greenbelt through external funding and partnerships, and conduct ongoing monitoring on carbon sequestration results and other cobenefits for existing and potential future projects, as called for in CAP Natural Solutions task 2.1.B.
Administration Ongoing Ongoing
128 CA, OS, ST
Sustain, Manage, and Enhance the City's
Greenbelt and Make Progress on Planting
10,000 trees by 2044
4.2 j. Continue to implement rehabilitation efforts throughout the City's open space network where storm damage has occurred to trails, access roads, and other open space infrastructure.
Parks and Recreation /
Administration
Ongoing Ongoing
129 CA, OS, ST
Sustain, Manage, and Enhance the City's
Greenbelt and Make Progress on Planting
10,000 trees by 2045
4.2 k. Continue partnership with City Farm SLO to install site security and access measures and to implement California Farmland Conservancy Program grant scope of work.
Administration / Parks
and Recreation
Ongoing Ongoing
130
4.3 Preserve and Enhance Convenient and Equitable Alternative and Sustainable Transportation Options
131 CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3 a. Active Transportation Plan (ATP) Tier 1 Network - Higuera Complete Street Project: Complete final design and construction of active transportation and safety improvements along Higuera Street corridor from Marsh St. to Los Osos Valley Rd.
Public Works FY25 Q3 FY26 Q4
132 CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3 b. Active Transportation Plan (ATP) Tier 1 Network - South/King Crossing: Complete design and construction of a new protected bicycle/pedestrian crossing at the intersection of South St. & King St., improving access to Meadow Park, Hawthorne Elementary, and existing active transportation routes.
Public Works FY25 Q3 FY26 Q2
133 CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3 c. Active Transportation Plan (ATP) Tier 1 Network - Foothill Complete Street Project: Continue design of active transportation and safety improvements along the Foothill Blvd. corridor between the western city limits and California Blvd., with goal to have shovelready project for construction in FY2025-27.
Public Works FY25 Q1 FY25 Q4
134 CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3 d. Active Transportation Plan (ATP) Tier 1 Network - California/Taft Roundabout: Complete final design and right-of-way acquisition for new roundabout at the California Blvd. & Taft St. intersection, with goal to have shovel-ready project for construction in FY2025-27.
Public Works FY25 Q4 FY25 Q4
135 CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3 e. Active Transportation Plan (ATP) Tier 1 Network - Paving Project Complete Street Elements: Implement complete street and safety improvements as part of 2023 and 2024 summer paving projects as guided by the Active Transportation Plan and Traffic Safety/Vision Zero reports.
Public Works Ongoing Ongoing
Budget Page 86
MCG Strategy
Strategic
Approach # Task/ Action Responsible Department(s)
Original
Completion
Date
Updated
Completion
Date Status
136 CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3 f. Active Transportation Plan (ATP) Tier 1 Network - Railroad Safety Trail (Orcutt to Tiburon) Connection: Initiate design and environmental review for a project that will complete the gap in the Railroad Safety Trail in the Orcutt Area between Tiburon Dr. and Orcutt Rd., including replacement of the narrow culvert on Bullock Lane and pedestrian/bicycle safety improvements at the Orcutt Road/Union Pacific Railroad Crossing.
Public Works FY25 Q4 TBD
137 CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3 g. Active Transportation Plan (ATP) Tier 1 Network - Foothill/California Railroad Crossing Improvements: Complete design and initiate construction of federally-funded pedestrian safety improvements at railroad crossing.
Public Works FY25 Q4 FY25 Q4
138 CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3 h. Active Transportation Plan (ATP) Tier 1 Network - Prado Creek Bridge Replacement: Complete design of new bridge, including sidewalks, protected bike lanes, and additional vehicular lanes to accommodate existing and future traffic demand. Includes reconstruction of S. Higuera/Prado intersection with additional capacity and protected intersection features to improve safety for pedestrians and cyclists.
Public Works Ongoing Ongoing
139 CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3 i. Active Transportation Plan (ATP) Tier 1 Network - Prado/US 101 Interchange: Complete project approval and environmental document phase of project, and initiate design phase for new interchange, which includes extension of Prado Road over US 101 to Froom Ranch Way, with new northbound on/off-ramps, four auto lanes, center median/left turn lanes, sidewalks and protected bike lanes. Includes realignment of Elks Lane and signalization of the Prado/Elks intersection.
Public Works Ongoing Ongoing
140 CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3 j. Vision Zero Implementation - Update annual Traffic Safety Report to evolve into a 5-Year Vision Zero Action Plan and continue ongoing implementation of traffic safety projects and programs, focusing efforts on the City's high crash/injury network.
Public Works Ongoing Ongoing
141 CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3 k. Transit Innovation Study Implementation: Begin planning implementation of strategies recommended in Final Transit Innovation Study, including incorporation of near-term strategies as part of planned SLO Transit/RTA Short Range Transit Plan update, as called for in CAP Connected Community Task 4.2.A and in the APMP Strategies 1.C.
Public Works /
Administration Ongoing Ongoing
142 CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3 l. Reassess the viability of launching a citywide bikeshare system, with ongoing coordination with Cal Poly as called for in CAP Connected Communities Task 2.2.A and the APMP strategy 1.B.1.
Solicit potential bikeshare system operators if staffing resources allow and this can be done without diverting resources from delivering priority active transportation infrastructure projects.
Administration FY25 Q4 FY25 Q4
143 CA, OS, ST
Preserve and Enhance Convenient and
Equitable Alternative and Sustainable
Transportation Options
4.3 m. Public EV Chargers - Enable public EV charger deployment on City property, support EV charger installation on private property, and deploy EV chargers in low-income areas of the City as called for in CAP Connected Community Tasks 6.1.A, 6.1.B, and 6.1.D.
Administration Ongoing Ongoing
144 4.4 Increase Community Resilience
145 CA, OS, ST Increase Community Resilience 4.4
a. In coordination with Zone 9, convene a working group to assess the current creek flow monitoring system and provide
recommendations for enhancements, as called for in CASE program FL-3.13.
Community
Development /
Administration / Fire
FY25 Q4 FY25 Q4
146 CA, OS, ST Increase Community Resilience 4.4
b. Conduct a study session to consider options for funding stormwater and / or creek maintenance and flood preparedness in support of CASE programs 3.9, 3.10, 3.11, 3.12, 3.13, and 3.14.
Utilities / Public Works /
Administration FY25 Q4 FY25 Q4
147 CA, OS, ST Increase Community Resilience 4.4
d. Evaluate opportunities to integrate climate considerations in the City's Engineering Standards and Specifications as called for in CASE program MH-1.6.
Public Works Ongoing Ongoing
148 CA, OS, ST Increase Community Resilience 4.4
e. Provide post-disaster recovery resources and emergency preparedness education to vulnerable community members as called for in CASE program MH-1.10.
Fire / Community
Development Ongoing Ongoing
149 CA, OS, ST Increase Community Resilience 4.4
f. Initiate the development of Wildland-Urban-Interface Defensible Space and Home Hardening Program as called for in CASE program FI5.15.
Fire FY24 Q4 FY24 Q4
150 CA, OS, ST Increase Community Resilience 4.4
g. Monitor funding sources and if feasible pursue a Climate Resilience Hub planning grant with community partners, as called for in CASE program MH-1.8.
Administration Ongoing Ongoing
Budget Page 87
MCG Strategy
Strategic
Approach # Task/ Action Responsible Department(s)
Original
Completion
Date
Updated
Completion
Date Status
151 CA, OS, ST Increase Community Resilience 4.4
h. In partnership with Zone 9, seek funding to initiate the Waterway Management Plan update to incorporate climate-informed flood risk as called for in CASE program FL-3.7. Initial work in this Financial Plan period is envisioned to include identifying and securing funding, developing a project scope, and drafting a request for proposals.
Administration FY25 Q4 FY25 Q4
152 CA, OS, ST Increase Community Resilience 4.4 i. Develop an Urban Creeks Vegetation Management Plan as called for in CASE program FL-3.10. Fire / Administration Ongoing Ongoing 153 CA, OS, ST Increase Community Resilience 4.4 j. Incorporate Traditional Ecological Knowledge into open space management decisions as called for in CASE program OP-7.2. Administration Ongoing Ongoing 154 CA, OS, ST Increase Community Resilience 4.4 k. Implement the Mid-Higuera Bypass Project. Public Works / Administration Ongoing FY25 Q3
155 CA, OS, ST Increase Community Resilience 4.4 l. Implement the Laguna Lake Dredging and Sediment Management Project.
Public Works /
Administration Ongoing FY25 Q2
156 CA, OS, ST Increase Community Resilience 4.4 m. Implement Silt Removal Projects from Priority Creek Locations. Administration / Public Works Ongoing Ongoing
157 CA, OS, ST Increase Community Resilience 4.4 n Implement existing Community Wildfire Protection Plan and initiate focused update in 2024. Fire Ongoing FY25 Q4
158
4.5 Continue to Build City and Community Capacity for
Transformational Climate Action
159 CA, OS, ST
Continue to Build City and Community Capacity
for Transformational Climate Action
4.5 a. Participate in the Cal Poly Climate Corps Fellowship program to build staff capacity as called for in the CAP.
Administration / CDD /
Public Works / Utilities Ongoing Ongoing
160 CA, OS, ST
Continue to Build City and Community Capacity
for Transformational Climate Action
4.5 b. Manage the Green Team to Support Lead by Example, Climate Adaptation and Safety Element of General Plan, and Climate Action Plan implementation, as called for in CASE program MH-1.11 and OP7.9.
Administration Ongoing Ongoing
161 CA, OS, ST
Continue to Build City and Community Capacity
for Transformational Climate Action
4.5 c. Continue to support and empower community collaboration for climate action, including support for the Climate Coalition and the San Luis Obispo Climate Justice Collaborative, as called for in CAP task 3.1.A.
Administration Ongoing Ongoing
162 CA, OS, ST
Continue to Build City and Community Capacity
for Transformational Climate Action
4.5 d. Support regional efforts to develop the workforce required to implement the Climate Action Plan as called for in CAP task 2.2.A. Administration Ongoing Ongoing 163 CA, OS, ST
Continue to Build City and Community Capacity
for Transformational Climate Action
4.5 e. Initiate update to the Lead by Example plan to inform the 2025-27 Financial Plan as called for by CAP Lead by Example task 1.1.A and Lead by Example Plan Administrative Action 1
Administration Ongoing Ongoing
164 CA, OS, ST
Continue to Build City and Community Capacity
for Transformational Climate Action 4.5
f. Conduct GHG Emissions Inventory and Biennial CAP and Lead by Example Progress Reports as called for in CAP Administrative Action 2 and Lead by Example Plan Administrative Action 2.
Administration FY24 Q3 Complete
165 CA, OS, ST
Continue to Build City and Community Capacity
for Transformational Climate Action
4.5 g. Continue to integrate climate action and resilience into the 2025- 27 Financial Plan development process consistent with Budget Policy A.6 and as called for by CAP Lead by Example task 1.1. and CASE Program MH-1.5.
Administration Ongoing Ongoing
166 CA, OS, ST
Continue to Build City and Community Capacity
for Transformational Climate Action
4.5 h. As authorized by City Council (December 13, 2022) and as called for in CAP Administrative Action 6, pursue grant and other external funding sources opportunistically and strategically.
Administration Ongoing Ongoing
167 CA, OS, ST
Continue to Build City and Community Capacity
for Transformational Climate Action
4.5 i. Complete steps and present recommendations and options to maximize the reuse of wastewater per the "Road Map" presented to the City Council.
Utilities Ongoing Ongoing
Budget Page 88
Administration and Information Technology
Administration and Information Technology Department
Department Summary
The Administration and Information Technology Department is responsible for providing information and recommendationsto the City Council, implementing Council policies and programs and managing the day‐ to‐day operations of the City. It is also the lead department charged with overseeing the implementation of several of Council’s Major City Goals. The department is organized by the Office of the City Manager, Office of the City Clerk, Office of Economic Development and Tourism, Office of Sustainability and Natural Resources, Office of Diversity, Equity and Inclusion, and the Office of Information Technology.
Office of the City Manager:
The Office of the City Manager oversees the high‐level administrative operations of the City, regional partnerships, the legislative advocacy platform, and supports the City’s public communications. The City Managerrecruitment will be wrapping up nearthe end of June; therefore, onboarding a new City Manager will be a major work effort for this program and the entire organization in FY 2024‐25. The Communications Program has been more active than ever with a focus on reaching more community members, creating more multimedia content to keep the community engaged, and providing ways to communicate important information to the community. The Communications Program was expanded in February 2024 with the addition of a new, temporary Mobility Services Communications Coordinator, who will play a vital role in keeping the community informed about the City’s Parking program, SLO Transit, and various active transportation projects. During the City Manager transition, the office will continue to support other Administration and IT Department programs as well as the entire City organization in reaching their goals.
Office of Diversity, Equity, & Inclusion:
The City’s Office of Diversity, Equity, and Inclusion (DEI) has been actively engaged in various initiatives that further the City’s efforts in building a more welcoming, inclusive, and equitable community where all feel respected, valued, and heard. The Office of DEI has managed the 2023‐24 Human Services Grant (HSG) Program, previously known as Grants‐in‐Aid; the 2023‐24 one‐time funding DEI SLO Business Grant Program, which was a shared goal and collaboration between the Office of DEI and the Office of Economic Development & Tourism; and the 2023‐24 DEI High Impact Grant Program.
The Office of DEI completed and executed a contract with Cal Poly’s Office of University Diversity & Inclusion (OUDI) to develop a Community Belonging Series, in various city locations to further engage the entire community. This initiative is designed to build spaces for learning and to bring the community together, to build stronger bonds, and to foster a sense of belonging. The Office of DEI also engaged in the research, writing, community outreach and engagement necessary to present to Council in February 2024 a draft DEI Strategic Plan, which was adopted by the City Council. The Office of DEI is currently engaged in partnerships with City departments to address specific tactics and initiatives that further and apply a DEI lens into various City projects impacting the community.
Office of Economic Development & Tourism:
The Office of Economic Developoment & Tourism (ED&T) includes the work programs of Economic Development, Tourism (include the management of the Tourism Business Improvement District) and Budget Page 89
Administration and Information Technology
Community Promotions. In FY 2023‐24, ED&T earned the successful approval of the updated Economic Development Strategic Plan (EDSP) and began the work of implementation including the reorganization of the office resulting in a new division of work programs and operations. In addition to the approval of the EDSP, the Economic Develpment program continued to implement strategies to support San Luis Obispo as an attractive place to live, work and play including business retention and expansion (BRE) support to over 75 businesses, grant funding for childcare facilities, support local programs like Buy Local Bonus that fuel the local economy, and community vibrancy efforts through placemaking like ARTober.
For the tourism work, the Tourism Business Improvement District (TBID) continued the attraction and promotion of San Luis Obispo as visitor destination by launching a whole new website experience through VisitSLO.com, through promotions like the Midweekend, partnerships with Cal Poly and others, and continued work on sustainability through Sustainable SLO and Keys for Trees. On the community promotions activities, the Promotional Coordinating Committee (PCC) was able revise the grant program for community events into the new Cultural Arts & Community Promotion (CACP) grant program that supported over 20 local non‐profit organizations in FY 2023‐24 and brought events and activities to the community. They were also instrumental in the development and implementation of the Support Local program focused on the various neighborhoods in San Luis Obispo ‐ including Downtown – as a way to promote all of the economic and cultural opportunities. The PCC also led the vision and City support for the Lunar New Year celebration that took place in February on Palm Street. Through coordination between the programs of Economic Development, Tourism and Community Promotions ‐ the Office of ED&T has continued to support and drive the economic and cultural vitality of San Luis Obispo.
Office of Sustainability and Natural Resources:
The Office of Sustainability and Natural Resources has been active with implementation of the Climate Action, Open Space, and Sustainable Transporation Major City Goal including adopting the revised Clean Energy Program for New Buildings and preparation of the Energy Efficient Renovations Policy, as well as activating the Green Team for implementation of the Lead By Example Municipal Climate Action Plan. The City also received a Buildings UP! Prize of over $400,000 through the federal Department of Energy to provide planning, community engagement, and property owner support for clean energy projects that focus on low income and disadvantages communities.
Staff are continuing work on a suite of land conservation projects that are anticipated to permanently protect valuable open space and natural resource values in areas throughout the City’s Greenbelt, and have completed the open space easements at Froom Ranch that protect rare and endangered plant habitat, wetlands, and a segment of Froom Creek. Other key work items have included the completion of the Righetti Hill Open Space Conservation Plan and the Community Forest Plan.
Recently, the City was awarded over $200,000 in grant funds to implement a series of process‐based restoration projects at Johnson Ranch Open Space and Bishop Peak Natural Reserve that will include partnerships with local non‐profits and the yak titʸu titʸu yak tiłhini (ytt) Northern Chumash Tribe. Staff also remain active with completion of actions listed in the City’s Recovery Action Plan for winter 2023 storm damage and the Lizzie Fire burn area, while continuing to stay focused and build capacity to pro‐ actively attend to pre‐treatment activities that address flooding and wildfire risk.
Budget Page 90
Administration and Information Technology
Office of the City Clerk:
The City Clerk’s Office facilitated 34 City Council meetings as well as implementation of hybrid meetings as needed, completed an annual training for Advisory Body Members, and ensured compliance with several City‐wide regulatory mandates. The Clerk’s Office is also prepared and ready to conduct the November 5, 2024, Municipal Election for Mayor and two Council Member seats.
Information Technology:
Rounding out the department is Information Technology which provides network and information technology infrastructure, support, training, policy and technology strategic planning. In partnership with Cal Poly, construction was successfully completed on KVEC Radio Tower greatly amplifying radio coverage capabilitiesfor public safety partners and emergency response teams. In early 2024, City‐wide radio digital encryption interoperability wassuccessfully deployed to ensure compliance with California lawsregarding transmission of personally identifying information. The Control Systems team played a crucial role in the successful launch of the new Calle Joaquin Liftstation and was also instrumental in the design, installation and commissioning of the SCADA systems, ensuring efficient and reliable operations from day one. The City limits were adjusted by the GIS team adding the newly annexed Froom Ranch area to the U.S. Census database while also migrating online applications to the new ArcGIS portal. Finally, Information Technology staff finalized for adoption the City’s first Broadband Plan which will allow the City to apply for grants from State and Federal sources to improve broadband access and affordability for all residents and businesses within the city.
Changes from Financial Plan
The department is not proposing any work program changes from the Financial Plan and will continue its contribution to the City’s strategic goals and departmental objectives. With the Office of DEI approaching its third year, and with a workplan that is now fully operational, the contract DEI Management Fellow position which is fully covered with existing budget, is recommended to move to a regular 1.00 FTE Administrative Specialist that will provide key support for tasksidentified in the current financial plan and future work efforts in the adopted DEI Strategic Plan. This change fulfills a task in DEI Strategic Plan to ensure resources are available to complete the work identified for the Office of DEI.
Budget Page 91
Administration and Information Technology
Performance Measures
Performance measures are designed to determine accountability, improve service quality, allocate resources, and evaluate departmental performance in meeting San Luis Obispo’s goals and objectives.
Objective Measure 2023‐24
Target
2023‐24
Projected
Actual
2024‐25
Target
Provides City‐wide
communications to the
community.
Strategic Goal: Citywide
Communications
Open City Hall Participant Satisfaction Rating 93% 92% 92% # of Pageviews for City News Pages 350,000 105,000 150,000 # of news email subscribers 4,500 5,600 6,000
Provides reliable IT
resources to the
organization and
community.
Strategic Goal: Information
Technology
Maintain City Network Reliability Uptime Status 99.9% 99.9% 99.9% Data backed‐up in Terabytes 173 174 173
Number of GIS layers maintained 920 920 920
Economic Stability
Strategic Goal: Economic
Recovery and Stability
Contacts with businesses regarding starting,
expanding, and/or staying in the City 75 75* 75
One‐time funds used for direct aid to local
businesses and non‐profits $175,000 $275,000 $175,000
Supports our commitment
to sustainability and
provides open space
resources to the
community.
Strategic Goal: Climate
Action, Open Space, and
Sustainable Transportation
# of Green Team Meetings 10 10 10
# of Open Space Conservation Plans that will guide
the long‐term protection and stewardship of
natural resource values while guiding appropriate
public use
1 1 1
Strengthens the City’s
commitment to advancing
Diversity, Equity and
Inclusion
Strategic Goal: DEI
# of City‐wide DEI Trainings Offered 10 51
6 # of DEI Newsletters for Staff 6 6 6
Funds for High‐Impact DEI Grants Awarded $150,000 $150,000 $150,000 1 Trainings were provided through Day of Welcome sessions, Police Command Strategic Leadership Training, and Community Development Code Enforcement Training. Due to other work efforts during the fiscal year including the development of the DEI Strategic Plan, there was reduced staff capacity to complete additional department trainings. The training target for 2024‐25 reflects a more accurate estimate of trainings that will be provided in addition to the other Office of DEI work.
Budget Page 92
City Attorney
City Attorney
Department Summary
The attorneys and administrative staff of the City Attorney Department continue to provide sound, thorough legal advice and services to the City Council, advisory bodies and City staff to support legal compliance and reduce exposure to liability; to advance most, if not all, Major City Goals and other important City objectives; and to maintain the core department objectives of completing efficient and reliable document review; providing and/or managing qualified counsel; and coordinating the administrative citation appeals hearing, claims review, and public record request legal review processes.
The 2023‐25 Financial Plan was intended to be a time of staffing stability. At its start, the three full‐time, regular positions that had been added to the department (Deputy City Attorney, Paralegal, and Legal Assistant) were to have had staff onboarded forsix monthsto a year, with July 2023 marking a move away from intensive training and monitoring, and into independent completion of work. For the Deputy City Attorney position, this expectation was achieved with the incumbent thriving in her role. However, the two non‐attorney positions were vacated by July 2023 and year one of the financial plan has consisted of recruitments, redistributed workload, and overlapping onboarding. As of the end of April 2024, all positions are again filled, with the Legal Assistant hiring process completed in August 2023 and the Paralegal position filled as of March 2024, and training proceeding well for both positions. With the contract Legal Assistant position also filled just prior to publication of this report, the department looks forward to gaining staffing and workload stability, while focusing on the onboarding and training of the newest hires and continued development of the fully staffed City Attorney’s Office.
Notwithstanding staffing variability, it remains clear the demand for legal services continues to escalate.
Based on continuing workload demand and complexity trends, staff submitted a net‐zero SOBC, for FY 2024‐25, requesting conversion of our ongoing funded contract legal support staff position to a regular, full‐time position. Additionally, the office will continue to evaluate, in preparation for the next financial plan, future actions that will sustainably align resource needs to staffing levels.
Since July 2023, several lawsuits with high impact on staff resources have been resolved. Most significant of these being Langley v. City of SLO (the matter alleging misapplication of evolving laws surrounding occupation and storage of property in public spaces by unhoused individuals), which was settled in December 2023, with implementation of the settlement agreement terms ongoing. Asthe remaining open litigation has continued its demand for the coordination of contributions from staff and leadership throughout the City, personnel and labor matters, specifically, have increased exponentially with five going to labor arbitration, appeal hearings before third‐party hearing officers, or the Personnel Board already in FY 2023‐24. Nevertheless, staff have continued to provide legal advice and support to Council and staff throughout the organization to help advance, or bring to completion, many important projects, including:
Mediation of development agreement disputes arising out of the San Luis Ranch and Avila Ranch project approval implementations.
Negotiations regarding the implementation of the 600 Tank Farm project and the Tank Farm Roundabout improvements.
Objections to the City’s application of housing and ADU laws, including SB 9, Housing Accountability Act and Density Bonus Law amendments.
Updates to various affordable housing agreements.
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City Attorney
Assistance to staff with review of applications for issuance of a retail cannabis permit and associated legal issues.
Negotiation of Mid‐Higuera Bypass easements for a significant flood control project. Froom Ranch easements necessary for annexation.
Assistance with negotiation of Acquisition Agreements with East Airport Annexation Area, necessary for participation in the SCIP funding program. Acquisition of 1106 Walnut and 1166 Higuera properties for City use. Legal advice related to Welcome Home Village, HomeKey, and city safe parking projects. Surplus Land Act compliance issues.
Non‐profit partner agreements, including SLOMA, SLO Rep, HASLO, TMHA, People’s Self‐Help Housing, and the Downtown Association.
Assistance to staff with updates to public art policies & agreements. Storm related project advice and financial, mitigation and remediation responsibility evaluation. Negotiations for a communications easement across the Damon‐Garcia property. Advice to staff on green building policies upon invalidation of electric building ordinance by 9th Circuit’s Decision in California Restaurant Association v. City of Berkeley. Assistance to staff with amendments to Chapters 8, 12, and 13 to the Municipal Code.
Changes from Financial Plan
Staff’s recommendation includes one change to the adopted 2023‐25 Financial Plan, to convert the contract Legal Assistant to 1.00 FTE Legal Assistant. Addition of this ongoing resource is recommended because the department has determined through experience, that permanent resources are a more efficient, effective, and reliable means by which to provide for the City’s ongoing legalservices and related administrative support needs.
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City Attorney
Performance Measures
Performance measures are designed to determine accountability, improve service quality, allocate resources, and evaluate departmental performance in meeting San Luis Obispo’s goals and objectives.
Strategic Goals Measure
2023‐24
Target/
Expected
Volume
2023‐24
Projected
Actual1
2024‐25
Target/
Expected
Volume
Timely and Responsive
legal advice and
support
Strategic Goal:
Department Objectives
Administrative Citation Appeals
Received by the City 120 116 120
Appeals closed without need of a
hearing2 25 34 25
City assisted corrections to defective
appeals to allow access to hearing 15 21 15
City facilitated hearings on the record
without need for personal appearance
by Appellant
30 33 30
# of hearing days scheduled3 12 20 184
Legal Training &
Compliance
Strategic Goal:
Department Objectives
# of Council, Staff, and Advisory Body
legal trainings, legal updates, and
compliance advisory sessions
12 8 125
Municipal Claims,
Litigation & Prosecution
Management
Strategic Goal:
Department Objectives
Percentage of Claims Resulting in
Litigation <5% 3.8% <5%
Liability Claims Against the City
Reviewed/Managed 70 52 70
Number of multi‐count complaints
filed for misdemeanor municipal code
violations6
35 33 457
1 Forecasted for year‐end as of 4/26/2024 2 Closed in some way that did not include a decision being issued (e.g. withdrawn by appellant, untimely filed, voided by the issuing department) 3 If more than one hearing officer convened hearings on the same day, those are counted separately. 4 Increased this target due to the addition of a third hearing officer. The volunteer hearing officers were previously asked to review a larger volume of appeals in a single day, but staff are now able to distribute the hearings among more volunteers and therefore reduce the demand on their donated time. 5 Decreased this target as the staff transitions described previously have impacted the ability of both attorneys and non‐attorney staff to develop and hold trainings. 6 New measure being tracked due to rise of volume and importance to the community. 7 Newer performance measure and adjusted this target up due to more efficient process devised by staff and higher level of staff coordination with the County, Court and Police Department resulting in less backlog.
Budget Page 95
Community Development
Community Development Department
Department Summary
The Community Development Department includes the Administration, Housing Policy and Programs, Planning, Engineering, and Building & Safety divisions, which develop, implement, and track guiding policies in the City's General Plan. Plans for new construction are reviewed through planning applications to ensure compliance with City standards and policy objectives. Construction is supported by implementing zoning, building, and engineering codes and coordinating with various city departments.
The Community Development Department provides service to the community directly at its public counter, and services are offered online through the City’s website. The department helps maintain the health and safety of the community directly through code enforcement activities and indirectly by guiding the City's urban form from concept to construction.
All divisions within the department have done an exceptional job of handling a high workload, with a few experiencing employee vacancies. Some areas of consistent or increasing workload include reviewing planning applications, public improvement projects, code enforcement violations, building inspections, and building permits. All divisions have been working this fiscal year on the user and regulatory fee study update, which is expected to be completed around the end of the fiscal year. This work has been a significant effort for the divisions with the goal of resulting in fees that are aligned with the current cost of providing services to the public.
Community Development Administration
The Administration team continues to provide process management and support for all the divisions within the Community Development Department. The division also supports the Department’s advisory bodies and Major City Goal work programs. Administration provides internal customer service by maintaining SharePoint pages and content, which are undergoing an overhaul. Externally supporting customer service via the phone while our online platform, Citizens Self‐Service Portal, allows customers to schedule inspections at any time while not being limited to the Department’s hours of operation.
Administration is currently undertaking a front counter user assessment by gathering input on front counter needs. This effort will inform front counter enhancements to make it easier for customers to interact with staff and provide a more customer‐focused experience, which is anticipated to be completed by the end of the Fiscal Year 2023‐24. This also includes the development of a transparency reporting dashboard that will be displayed in the permit center to enhance public awareness about important department updates and provide customers with information related to processing and wait times.
Administration collaborated with the Communications team to update the website home page to make it streamlined and user‐friendly. Once the home page is completed, other pages will be restructured or updated to create consistent branding and messaging across all the Department’s pages.
Planning
The Planning Division continues to serve our community by processing planning entitlements, building permit application reviews, policy and long‐range planning initiatives, historic preservation, cannabis program implementation, tree regulation implementation, and housing and homelessness‐related work.
Planning continues to make process improvements to support housing production and economic Budget Page 96
Community Development
development, allowing certain projects to move forward with a timelier and streamlined review of entitlements. Work efforts have been completed or are in progress on many key Housing & Homelessness Major City Goal work program tasks, including an initiation of an update to the Margarita Area Specific Plan, an initiation of an update to the Airport Area Specific Plan, completion of a Council study session to identify needs and opportunities across the housing spectrum, development of a scope of work to update the City’s parking requirements, initiation of an update to the City’s Historic ResourcesInventory,recipient of a ProHousing designation from the State of California, and ongoing implementation of the Homelessness Response Strategic Plan.
Major highlights include the award of a Project Homekey grant from the State in the amount of $19.4M for the Calle Joaquin Homekey project, continuation of work on the Welcome Home Village project in collaboration with the County to provide 80 interim and permanent supportive housing units, and expansion of the 40 Prado Safe Parking Program from 7 to 12 parking spaces.
Planning cycle times for application reviews continue to exceed the 75% target goal. The Planning division experienced recruitment challenges at the beginning of the fiscal year but has since hired a Cannabis Business Coordinator, an Urban Forestry Coordinator, an Assistant Planner, and a Community Development Climate Fellow.
Over the past several years, the Planning Division has experienced growth including the addition of the Housing Policy and Programs Manager, Homelessness Response Manager, Housing Coordinator, Cannabis Business Coordinator, and Urban Forestry Program Coordinator in order to respond to community needs and address major city goals and priorities. Adding programs and employees has substantially changed the division and the role of its management positions, including the Deputy Director of Community Development/City Planner, Senior Planners, Housing Policy and Programs Manager, and Homelessness Response Manager. To address these changes and ensure that the Planning Division is organized efficiently, the Community Development Department completed a classification study of the management positions in the Planning Division. The study's findings, including the need to reclassify several positions, are recommended by the Human Resources Department to ensure the Planning Division’s classifications are equitably aligned with other classifications in the city and with the labor market. A City Manager Report and updates to job descriptions will be completed to finalize the reclassifications.
Engineering
The Engineering Division is important in the Development Review process, ensuring that public improvements required to support private property development are designed to meet city standards. In addition, the Engineering Division reviews grading and drainage plans to ensure that stormwater management is consistent with the City’s Drainage Design Manual. The division evaluates planning applications and building permits for compliance with stormwater management, in addition to the direct applications received for subdivision map checks and Public Improvement Plans. The Engineering Division plays a major role in facilitating housing production in the city. It supports the Housing and Homelessness Major City Goal by providing plan check and mapping services for projects such as Avila Ranch, San Luis Ranch, Froom Ranch, Righetti Ranch, Bullock Ranch, 600 Tank Farm Road, 650 Tank Farm Road, 1150 Laurel Lane, three HASLO projects (Anderson Apartments, 279 Bridge Street, and 1422 Monterey Street), as well as numerous SB 9 urban lot splits and Accessory Dwelling Units.
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Community Development
The Engineering Development Review Division sent letters to property owners regarding annual stormwater inspection requirements, in coordination with the Building Division and Utilities Department.
A plan was developed to track projects with stormwater control devices and ensure they have been properly maintained per their operations and maintenance manuals. This plan was carried out to meet the reporting requirements of the Central Coast Regional Water Quality Control Board.
Encroachment permits have included significant private development projects, fiber optic projects, utility company projects, and night work. Outdoor dining encroachment permits for parklets, and tables and chairs have been reviewed for downtown projects, including 746 Higuera Street, 849 Monterey Street, and 857 Monterey Street. Engineering also issues encroachment permits for capital improvement projects.
Significant staffing changes have caused continual transformation for this division, which started at the beginning of the fiscal year with staffing shortages. As of the time of preparation of this budget supplement, key positions have been filled with a mix of full‐time employees, supplemental part‐time, temporary employees, and contracted services. While the hiring climate has been challenging, the following positions were filled: Engineer I, Permit Technician I, Engineering Technician III, Senior Civil Engineer (full‐time regular), and Senior Civil Engineer (temporarily filled with a supplemental part‐time employee; the position will remain open until it can be filled with a full‐time regular employee). Filling these positionsresulted in immediate improvementsto customerservice and project processing timesfor CDD Engineering. In April, the Supervising Civil Engineer, the highest‐level position in CDD Engineering, left the City. The Department is actively recruiting for the crucial position and is currently utilizing existing staff supplemented by consultant support to ensure that the vacancy does not impact operations. Due to this vacancy, the CDD Engineering division has been moved temporarily to the Building and Safety Department. Staff is assessing whether this move will become permanent.
Building and Safety
Code Enforcement: The Code Enforcement team promotes community health and safety by increasing awareness of City policies and investigating reported code violations. The monthly average number of open code enforcement cases has increased, and code enforcement staff has responded to more investigation requests. The City Council held a study session in the second quarter of Fiscal Year 2023‐24, to provide an overview of the division's work and discussed the development of the Safe Housing Program.
Code Enforcement has hired a Code Enforcement Technician II (Safe Housing Specialist) who is working closely with Cal Poly’s Off‐Campus Housing Program Coordinator to develop rental housing educational materials and programs. The Code Enforcement team is now fully staffed for the first time in several years with the recent hire of a Code Enforcement Technician I who is dedicated to Neighborhood Services.
Building Inspections: The number of building inspection requests has remained high, with over 7,000 inspections conducted since the start of the Fiscal Year 2023‐24. The team has become efficient in scheduling inspections because of technology upgrades that now include an option of requesting an inspection online. The building inspection team is fully staffed and supplemented by a consultant inspector who is funded by and stationed at the San Luis Ranch Development. This funding will end in June 2024, and the Fiscal Year 2024‐25 supplemental budget includes recommendations to add this position as a permanent ongoing inspector. On average, the building inspection team, consisting of one Budget Page 98
Community Development
supervisor and three inspectors, conducts over 650 building inspections monthly. A notable project that recently received a final inspection is the People’s Self‐Help Housing on Broad Street, consisting of 36 affordable units and a community center. Another notable project downtown, the renovation of the Anderson Hotel, is currently framing out accessible units on each floor and has completed the seismic strengthening of the foundation walls in the basement. There are also two new mixed‐use projects that are currently in the vertical phase of construction downtown. These projects are located behind the Creamery and at the old Foster Freeze site (Both on Higuera) and will provide more than 40 new dwelling units downtown.
Permits: Building permit activity has remained high and is consistent with last year's numbers. The front counter received over 1,580 new building permit applications and an additional 283 fire permit applications. 1,588 building permits have been issued during the same time. The Division continues to receive applications for installing photovoltaic systems (Solar Panels). Since the start of the fiscal year, the City has issued over 372 solar permits, 355 of which are for residential properties. Over 100 of these applications are for new Energy Storage Systems (backup batteries). More of these systems are expected to be installed over the next several years as PG&E implements the Residential Storage Initiative (RSI) program. Under this program, PG&E offers Tesla Powerwall Battery Storage Units and installation for free to their most vulnerable customers.
Housing Policy and Programs
Major City Goals for Housing and Homelessness include implementing the 6th Cycle of the Housing Element and the Homelessness Response Strategic Plan. Housing Element Implementation included amending the permitting processes to clarify and implement new state laws for SB9 (CA HOME Act), small lot subdivisions in single‐family zones, Accessory Dwelling units, and density bonus projects. Specific Plan updates have been initiated for both the Margarita Area and the Airport Area. On March 5, 2024, a housing study session was held, and a scope of work for a parking study to remove barriers to housing production was completed. The scope of work was estimated to cost approximately $200,000 by consultants who complete this type of work and this time, staff is not recommending moving forward to complete this work due to budget constraints in FY 2024‐25. As a result of the housing study session held on March 5, staff also produced a matrix of housing related policies and programs that would support additional housing production across the housing continuum. The matrix includes policies and programs that are currently underway, those that are part of the Community Development work plan, and those that could be considered for future work programs. This matrix was presented to the City Council as part of the May 7 Fiscal Year 2024‐25 Supplemental Budget Preview, during which time public comment was received on additional ideas to encourage housing. As a result of that public comment, staff has developed a response to describe which of these ideas could be accommodated within the existing work program and which cannot. Staff can continue to develop the scope of the items that cannot currently be accommodated in the work program in order that they could be considered in the next budget cycle. A Downpayment Assistance Program was established for the Avila Ranch Development in accordance with the Development Agreement. The City’s Below Market Rate housing portfolio continues to grow with Budget Page 99
Community Development
construction started on the Maxine Lewis and Bridge Street Apartment projects and the opening of Broad Street Place. In February 2024, the state designated the City as a Prohousing jurisdiction.
Homelessness Response Strategic Plan implementation included work with community partners, including the County of SLO, People’s Self‐Help Housing (PSHH), and the Housing Authority of SLO (HASLO), to move two projects to construction in the summer and fall of 2024 that would rapidly provide approximately 150 units to house and provide wrap‐around services to unsheltered individuals and families; the Welcome Home Village and the Calle Joaquin Homekey projects. Staff has updated and streamlined encampment clean‐ups, including revising protocols for internal and external requests and those coming through Ask SLO, in alignment with the City’s Compassionate Assistance Mitigation and Prevention (CAMP) Standards. On the outreach front, Homelessness Response staff have distributed over 1,000 updated pocket guides (in English and Spanish) in the fall of 2023, provided direct outreach to downtown businesses with Community Service Officers, and responded to ten media and 27 community partner and business group invitations to speak to organizations about City Homelessness Response. A Homelessness Response Community Forum is planned for June 5, 2024. Overnight Safe Parking was expanded from seven to twelve spots at the 40 Prado Homeless Services Center, and a rotating overnight safe parking program has been developed and is awaiting implementation readiness through CAPSLO and potential FY2024‐25 Outreach Services Funding through SLO County. Homelessness Response staff administered the Annual Homelessness Response survey, shared with the City Council and all City employees. An update to the City’s Homelessness Response Strategic Plan is planned for presentation to Council on June 18, 2024.
Changes from Financial Plan
Staff is recommending three changes to the adopted 2023‐25 Financial Plan in order to continue to provide the same level ofservice to the public in critical work program areas. 2.00 FTE positions, a Building and Safety Inspector and Stormwater Inspector are recommended, due to the ongoing increased demand for inspection servicesresulting from the high level of building in the community, as well as the regulatory requirements related to stormwater compliance for these construction projects. In addition, staff is recommending the allocation of one‐time funds to continue the Hotel Voucher Program into the next fiscal year to ensure availability of beds for those experiencing homelessness when they cannot be accommodated elsewhere. These recommendations support the continued provision of services to the community as well as the Housing and Homelessness Major City Goal.
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Community Development
Performance Measures
Performance measures are designed to determine accountability, improve service quality, allocate resources, and evaluate departmental performance in meeting San Luis Obispo’s goals and objectives.
Objective Measure 2023‐24
Target
2023‐24
Actual
2024‐25
Target
Affordable housing production
Strategic Goal:
Housing
Number of affordable
housing units secured
through entitlements or
construction
50 94 50
Provide Excellent Customer
Service
Strategic Goal:
Other Department Objectives
Customer survey response
positivity rate
85% 90% 85%
Objective Measure 2023‐24
Target
2023‐24
Actual
2024‐25
Target
Ensure a Safe Community
Strategic Goal:
Housing
Percent of Code
Enforcement cases
investigated on time: First
Tier ‐ 24 Hours, Second
Tier ‐ 2 Days, and Third Tier
‐ 3‐5 Days
85% 59%1 85%
Development Review activities
Strategic Goal:
Other Department Objectives
The target goal of meeting
cycle times 75% of the time
reflects an increase in more
complex and
resource‐intensive
development review
activities.
75% 76% 75%
Building Permit Review
activities
Strategic Goal:
Economic Stability
Percent of building permit
reviews completed within
established cycle times
85% 52% 85%
1 Code Enforcement continued to experience increased investigation requests. This trend began with the implementation of the AskSLO application in October of 2022. The Code Enforcement team has been fully staffed since January 2024.
Budget Page 101
Finance
Finance Department
Department Summary
The Finance Department is tasked with safeguarding the City’s resources and fiscal health by implementing financial policies, procedures, and reporting systems to serve the citizens and enable operating departments to achieve their objectives. Finance plays a key role in the City’s Economic Resiliency, Cultural Vitality and Fiscal Sustainability Major City Goal by developing strategies to control expenditures to maintain a balanced budget, ensuring transparency in financial reporting and enhancing the City’s financial systems to support accurate and timely accounting processes.
In the first year of the 2023‐25 Financial Plan, the department was impacted by several significant non‐ recurring work efforts. The January and March 2023 storm events caused significant damage to City infrastructure and resulted in Presidential emergency declarations, triggering the availability of public assistance for all local agencies in San Luis Obispo County. Finance is leading the effort to work with the Federal Emergency Managment Agency (FEMA) and California Office of Emergency Services (CalOES) to secure reimbursement for an estimated $35.2 million of storm related expense. As of the writing of this narrative, the City has spent approximately $12.6 million on storm response, and has submitted $17.2 million of storm related expenditures to FEMA for consideration of reimbursement. The expenditures submitted to FEMA include both costs that have already been incurred, as well as estimated costs for future or in‐progress projects which enables FEMA to begin review of projects prior to completion (actual project costs are provided upon completion). The unexpected and unbudgeted storm costs also prompted activation of a Fiscal Health Contingency Plan in order to control expenditures. The department also secured $47 million through a lease revenue bond to fund construction of the Cultural Arts District Parking Structure, which began in the fall of 2023. As a part of that financing, staff also refinanced prior bonds in order to free up City assets that had been encumbered so that those assets can be pledged as a part of future expected debt financing for major projects like the Highway 101/Prado Road Interchange. Finally, the department is nearing completion of an organizational assessment in order to determine the most optimal organizational structure to support effective delivery of Finance services to both the City organization and external customers. This assessment has resulted in the reclassification of several positions to meet current departmental needs and provide additional opportunities for succession planning.
For the first time in over a year, the department is fully staffed and looks forward to redistributing workload which will help staff deliver on core services and objectives more efficiently. Six regular staff were hired in FY 2023‐24, so staff orientation, training and development will continue to be a significant focusin FY 2024‐25. New staff are coming up to speed quickly, and the capacity that this creates will allow the department to focus its efforts on making updates to policies and processes to better support the growing organization. Training for all staff Citywide will also be a significant focus in FY 2024‐25.
Changes from Financial Plan
Staff’s recommendation includes two changes to the adopted 2023‐25 Financial Plan, comprising the addition of 0.50 FTE Administrative Assistant‐Confidential to provide administrative support to the department and increasing a 0.50 FTE Financial Analyst for Enterprise Resource Planning (ERP) to 1.00 FTE in order to create needed capacity to support ongoing work to improve the Oracle ERP in coordination with Information Technology. The addition of the 0.50 FTE Administrative Assistant‐ Confidential partially restores administrative support that was eliminated in 2022 to enable the addition of a Payroll Analyst to allow for further capacity in the City’s payroll function, which has increased in size and complexity due to Budget Page 102
Finance
the Oracle payrollsystem as well as growth in employee headcount. The elimination of the Administrative Assistant position resulted in Finance being the only department without dedicated administrative support, which led to spreading those duties among allstaff and expanding reliance on other departments to assist Finance. The increase of the Financial Analyst for ERP from half‐time to full‐time will provide the department with the resources necessary to oversee the assigned functional aspects of ongoing maintenance of the Oracle system, make meaningful system improvements to address issues identified by the City’s external auditor, and provide desirable enhancementsthat have been identified by the team.
Both of these recommendations will directly contribute to the City’s strategic goals and support Citywide needs.
Performance Measures
Objective Measure 2023‐24
Target
2023‐24
Projected
Actual
2024‐25
Target
Enables & enhances transparency,
accountability & integrity.
Strategic Goal: Fiscal Policies
# of calendar days following year‐end
until CAFR is issued 170 170 170
# of audits/reviews conducted/ # of
additional agreed upon procedure
audits performed
2/2 2/2 2/2
Protects & prudently manages its
financial resources.
Strategic Goal: Fiscal Policies
# of funds within fund balance
requirements/ total funds with fund
balance requirements
8/8 8/8 8/8
Net direct debt per capita (General
Fund) $39 $42.4 $42.4
Twelve‐month total rate of return/City
portfolio 3% 4.75%1 3%
1 Based on the February 2024 Investment Report for the calendar year ending 12/31/2023. While ultimately the City aims for a long‐term rate of return of 3%, market volatility can cause swings from year to year. As a government entity, the City’s primary investment objective is to achieve a reasonable rate of return on public funds rather than the maximum generation of income, which could expose the City to unacceptable levels of risk.
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Fire
Fire Department
Department Summary
In addition to providing exceptional and compassionate emergency response, the Fire Department embraces inclusive fire prevention and education strategies that include fire and life safety inspections, plan review services, fire/arson investigation, fire safety and public safety education, and disaster preparedness classes. The department’s vision is to be a progressive organization that leads the community in public safety and preparedness demonstrated through an unwavering commitment to the protection of lives, property, and the environment. The service provided will be of the highest quality recognized against local, state, and federal standards.
The Fire Department has six major programs to ensure that the community continues to receive exceptional service: Fire Administration, Emergency Response, Fire Prevention, Fire Training, Fire Apparatus Fleet Service and Emergency Management. At mid‐year of FY 2023‐24, the City Council funded an increase in the fuel budget, replacement of the Fire Marshal vehicle and authorization to complete a refurbishment on Truck 1. The Fire Marshal vehicle was past replacement age and beginning to see an increase in repair costs; its replacement was funded through the Local Revenue Measure. Truck 1 was nearing engine failure and the cost to continue repairing was escalating as well as the increased time out of service. The Community Resources and Services Specialist is the Mobile Crisis Unit Case Worker and was previously provided through a contract partnership with Transitions Mental Health Association. The position was transitioned to a contract City employee in mid‐February, allowing the Mobile Crisis Unit to better serve the community’s unhoused and other individuals in crisis.
Changes from Financial Plan
Staff is recommending two changes to the adopted 2023‐25 Financial Plan, including increase of a 0.50 FTE Fire Inspector to 1.00 FTE in order to address an increasing number of Fire Life and Safety Inspections due to increased development, and addition of a contract Fire Vehicle Mechanic for one year to complete the drive‐train refurbishment on Truck 1. The department will continue its contribution to the City’s strategic goals and departmental objectives.
Budget Page 104
Fire
Performance Measures
Performance measures are designed to determine accountability, improve service quality, allocate resources, and evaluate departmental performance in meeting San Luis Obispo’s goals and objectives.
Objective Metric 2023‐24
Target
2023‐24
Projected Actual
2024‐25
Target
Deliver Timely
Effective Response to
ensure rapid care and
hazard mitigation
Strategic Goal: Other
Department
Objectives
Meet the Total Response Time (TRT) goal of 7
minutes or less to 90% of all lights‐and‐siren
emergencies in the City as defined by the
Department’s Master Plan. TRT Includes Call
Processing Time, Turnout Time, and Travel
Time. 87:00 8:32 7:00
Meet the Call Processing Time goal of 1 minute
or less to 90% of all lights‐and‐siren
emergencies in the City as part of TRT. 1:00 1:32 1:00 Meet the Turnout Time goal of 2 minutes or
less to 90% of all lights‐and‐siren emergencies
in the City as part of TRT. 2:00 2:06 2:00
Meet the Travel Time goal
of 4 minutes or less to 90% of all lights‐and‐
siren emergencies in the City as part of TRT. 4:00 5:45 4:00 Provide timely service
to the development
community. Strategic
Goal: Housing
Plan Review completed # 30 350 290 307 N/A 350
% of annual within cycle times 100% 80% 62% 80% 80%
Occupancy Inspections # 00 1190 658 1190
Hazardous Materials Inspections (CUPA) 23 264 207 264 Budget Page 105
Human Resources
Human Resources Department
Department Summary
Human Resources plays a pivotal role in providing comprehensive organizational support in various domains, including benefits administration, risk management, compensation, recruitment, labor relations, performance management, training and development, and legal compliance.
The department continues to experience a high volume of recruitments, labor issues, and performance management issues. This is in part due to the impact of the Great Reshuffle, the dynamic and changing workforce, and other external factors. Additionally, there is an increased level of requestsfor classification review, leaves of absence, disability accommodation, and benefits changes.
During FY 2023‐24, notable achievements included: (1) the successful negotiation of a successor Memorandum of Understanding with the International Association of Firefighters, Local 3523 and Police Staff Officers’ Association, (2) hiring or promoting 90 regular full time employees, representing approximately 20% of the organization, as well as 33 limited term employees and (3) Establishing a Labor Relations Committee to provide valuable insights, expertise, and diverse perspectivesto the City Manager and HR Director on labor‐related matters, cultivating a culture of informed collaboration.
New legislative mandates effective January 1, 2024, have necessitated updates to policies and system configurations, compounding the department’s existing workload. The department continues to partner with the Centre for Organization Effectiveness to provide professional development opportunities for employees and supervisors across the organization and implement enhancements based on the 2023 Employee Engagement Survey. Additionally, staff continues to partner with IT and Finance to make enhancements to the Oracle Human Capital Management system.
Although the HR Manager position remains vacant despite multiple recruitment attempts, workload has been redistributed to temporary staff members to meet the needs of the organization. Half of the HR team is new to the organization, and the full HR team has been in their roles for less than three years.
The Insurance Fund is structured to maintain an adequate reserve to cover fluctuations in liability and workers’ compensation costs. Expenses have remained stable during FY 2023‐24 and there was no need to request undesignated fund balance asin prior years. The City transitioned to participating in the excess program for workers’ compensation effective July 1, 2023 with a $500,000 self‐insured retention limit.
Staff will continue to seek ways to reduce claims costs. The City now contracts with The Counseling Team International to offer mental health resources to employeesin the Police and Fire departments due to the unique situations they encounter.
Overall, the department focused on and achieved its highest priority goals and will operate within the parameters of the approved Financial Plan for the remainder of the 2023‐2025 budget cycle.
Changes from Financial Plan
Staff does not recommend any changes from the Financial Plan.
Budget Page 106
Human Resources
Performance Measures
Performance measures are designed to determine accountability, improve service quality, allocate resources, and evaluate departmental performance in meeting San Luis Obispo’s goals and objectives.
Objective Measure 2023‐24
Target
2023‐24
Projected
2024‐25
Target
Integrated HR
Services
(Strategic Goal)
Average days between injury and
Workers’ Compensation claim filed. 3 4 3
Achieved lower severity of Workers’
Compensation claims than the risk
pool
Yes Yes Yes
Annual liability claims payment under
the Self‐Insured Retention amount.
Yes Yes Yes
Employee
Development &
Growth
(Strategic Goal)
Percentage of On‐Time Employee
Performance Evaluations 95% 97% 98%
Percentage of Internal Promotions 40% 36% 35%
Training Sessions Coordinated 20 20 20
Engaged and
Aware Culture
(Strategic Goal)
Number of Policies Communicated 75 85 90
Informational Sessions Coordinated 200 125 130
Budget Page 107
Parks and Recreation
Parks and Recreation Department
Department Summary
The Parks and Recreation Department is committed to providing quality parks and facilities (such as the SLO Swim Center, Damon‐Garcia Sports Complex, and Laguna Lake Golf Course) and recreation programs, childcare, special events, activities for youth and seniors, cultural and educational opportunities to encourage wellness and develop community through leisure, cultural, and social pursuits. The department also protects and preserves the City’s natural resources and open spaces.
Community Services:
The Community Services Division coordinates youth and adult sports, organizing recreational activities and classes, community events, overseeing the SLO Skate Park, Jack House events and facility, manages the community gardens programs at five locations, and coordinates Senior programming. In the past year, the division hasfilled two recreation coordinator positions that became vacant after previous staff moved out of the area.
Community Events, Jack House, and Contract Classes: The division continues to rely on both full‐ and part‐ time staff, as well as coordinating with student groups and academic classesfrom Cal Poly, for community‐ building events. This year the department held annual events including: September Scramble, Boo Bash, Leprechaun Lost, and Spring Fling. During the summer, the division coordinated five Monday Meet Ups at different park locations for hundreds of community members. In addition, the division supported Jack House special events such as the Victorian Christmas tours and Mother’s Day concert. The division also contracted with dozens of community partners to provide enrichment and recreational class opportunities through the contract class programs.
Youth Sports, Adult Sports and SLO Skatepark: Over the past year, the division successfully operated a three‐week youth sports camp, ensuring care for over 100 children during periods when school programs and regular Youth Service Programs were closed. The annual free and award‐winning Junior Giants program engaged over 250 participants with the assistance of 60 volunteer coaches. Monthly youth sports clinics throughout the year provided exposure to new and non‐traditional sports and attracted diverse participation. Partnerships with the YMCA facilitated the coordination of two youth sports leagues of basketball and futsal, achieving record participation numbers since the pandemic (over 700 basketball participants and 360 futsal participants). The division also continues to support and host the county‐wide annual Monster Skate Series, Skatepark Competition with five agency partners.
Adult softball has remained a fan favorite with an average of 55 teams playing each of the three league seasons. In addition, the division oversees drop‐in sport leagues for Volleyball, Dodgeball, Table Tennis, Pickleball, Basketball and Boomer Softball.
Community Gardens and Skate Park: The division continues to maintain four* community gardens, providing a platform for over 150 gardeners to cultivate their interests while fostering a sense of Budget Page 108
Parks and Recreation
community. Volunteer workdays have played a crucial role in sustaining these gardens, with six events organized to date. *North Broad street location is currently under renovation.
Senior Programs: Senior programming has undergone significant expansion, with the introduction of new activities and events tailored to the interests and needs of older adults. This includes initiatives such as Senior walkers and hikers, multi‐generational weekly trivia, Pet Week, holiday events, technology classes, and around‐the‐town excursions, enriching the lives ofseniors and fostering social connections within the community. These programs are in addition to the programs offered through the SLO Senior Center, with whom the division directly provides support with the new Recreation Coordinator who spends 50% of their time at the Senior Center.
While the division has achieved significantsuccesses, challengessuch asshortagesin youth basketball and futsal referees, softball umpires, and staff turnover have posed obstacles to program delivery. In response, efforts are underway to bolster supplemental staffing levels and provide adequate support to full‐time staff in achieving departmental objectives through assessing current supplemental salary funds in order to provide more dedicated support through the addition of Recreation Service Leader 1 positions.
Moving forward, the division remains committed to its mission of enriching community life through innovative programming, fostering healthy lifestyles, and promoting social cohesion.
Youth Services:
The Youth Services Division provides high‐quality childcare and out‐of‐school time programs for the community, guided by the objectives outlined in the Financial Plan, including operating licensed childcare at five school sites within the city, offering before and after‐school care, providing out‐of‐school time care during teacher workdays, spring break, and summer programs, and partnering with the San Luis Coastal Unified School District (SLCUSD) to expand summer care options. The division typically employs over 70 supplemental employees when fully staffed, providing regular staff development and growth opportunities. Subsidized care is provided to over 50 qualified families through local partner, CAPSLO.
Accomplishments over the past year demonstrate the division's commitment to serving the community.
Daily over 500 youth receive care in the City program. Efforts to enroll more children off the waitlist have been successful, with 22 additional spots opened for children in February of 2024 due to strategic adjustments made by staff. Summer camp enrollment has more than doubled to over 300 through partnership with SLCUSD, accommodating more children and filling a more diverse need for care. The division recruited dozens of supplemental staff and provided extensive training to ensure high‐quality care. Additionally, the division‐maintained state licensing compliance and passed annual non‐scheduled licensing site checks.
Programmatic changes since the adoption of the Financial Plan include doubling summer camp offerings from 120 to over 300, continuing partnerships with the school district, and maintaining before and after‐ school care at five sites to accommodate more children. These changes have financial implications, such as increased revenue from expanded summer camp offerings. The continued partnership with the school district enhances program accessibility and effectiveness, while maintaining care at multiple sites ensures Budget Page 109
Parks and Recreation
adequate space for children in need of services. Despite recruitment challenges, the Youth Services Division remains committed to providing essential childcare and out‐of‐school time programs to support families and children in the community.
Upcoming construction at school sites may limit available space, potentially requiring lower enrollment numbers. Recruitment challenges for full‐time site directors have led to increased responsibilities for supervisors and coordinators. A shortage of supplemental employees has resulted in site directors being required to work "in ratio" to meet licensing requirements, impacting administrative duties. Changes in funding from the school district for summer school enrollees and Kinder and TK care programs also pose challenges that may impact the financial plan.
The City continues to participate in the Childcare Study that began in 2020 with agency partners: SLCUSD, SLO County, Cal Poly, First Five, and CAPSLO. Most recently the partners moved forward with the third phase of the study with the hiring of a consultant to provide a feasibility study identifying facilities available within the County and what would be necessary, fiscally and resource wise, to open a joint agency childcare facility to serve staff members. This third phase of the comprehensive study is anticipated to be completed and presented to the Child Care Study committee in late June 2024.
Public Art Program:
With the recent hire of a new Public Art Coordinator in January, the City’s Public Art program has experienced a revitalization. Since January 2024, a major focus has been made to engage the local artist community, assess and highlight the City’s current inventory, connect with local agencies (such as Arts Council and NAACP) and activate opportunities for collaboration. The Program is renewing the popular Box Art Program and the installation of 10 new boxes is underway, along with a new mural. Since the onboarding of the Public Art Coordinator, the program's focus has expanded to better serve local art communities, leading to increased growth and opportunities. Public art staff also have taken over the responsibility of the installation of the Chorro Street Underpass artwork.
The City continues its collaboration with the San Luis Museum of Art (SLOMA) through a two‐year partnership agreement. City staff play a crucial role in supporting SLOMA by managing administrative tasks related to art acquisitions. On behalf of the City, SLOMA has replaced the temporary sculpture at Mission Plaza lawn with a consigned piece by April Banks and is working with local artist Warren Hamrick for an installation to occur at a roundabout in the San Luis Ranch area. SLOMA has also begun steps to install a temporary art piece in the Garden Street Alley.
In the past year, staff worked with local fabricators to do a major repair on “Ironroad Pioneers” sculpture located in the Railroad District, as well as continue to address many smaller fixes to current art inventory throughout the City, resulting from vandalism and graffiti.
The Public Art Program acknowledges programmatic challengesthat have arisen since the adoption of the Financial Plan. The absence of a streamlined inventory management system has hindered maintenance efforts and community engagement. Ongoing deferred maintenance necessitates a comprehensive Budget Page 110