San Luis Obispo City Council
January 21, 2025

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024

Note 7: Long Term Debt (Continued)
Business-Type Activities Summary:

Revenue Bonds
2018 Lease Revenue Refunding Bonds. In 2018, the Authority issued lease revenue bonds in the amount of $16,905,000 to advance refund the outstanding 2005 revenue refunding bonds and the 2006 and 2009 lease revenue bonds, which were originally issued to construct several high priority capital improvement projects and to finance the costs of acquisition and construction of public parking facilities, and the public safety communications and emergency operations center project. Of the original bond issuance, $5,832,225 was used for financing business-type activities related to the original bonds and the remainder was used for governmental activities.

The bonds bear interest from 3.00% to 5.00% and are due in annual installments on June 1, through June 1, 2039 that range from $255,000 to $1,250,000. At June 30, 2024, the principal amount outstanding that pertains to business-type activities was $3,946,800 of the total $11,440,000 outstanding.

In the Statement of Net Position, the 2018 bonds include the related unamortized premium which is being amortized and charged to expense over the term of the 2018 bonds. At June 30, 2024, the unamortized premium that pertains to business-type activities was $399,083
The refunding resulted in a difference of $374,404 between the reacquisition price and the net carrying value of the old debt and is being amortized to expense through 2039. The City completed the refunding to reduce its total debt service payments over the next 21 years by $3,838,338 and to obtain an economic gain of $2,960,278 (difference between the present values of the old and the new debt service payments).
2018 Water Revenue Refunding Bonds. In 2018, the City issued water revenue refunding bonds the in the amount of $10,095,000 to refund the 2006 water revenue bonds, which were originally issued to fund improvements to the water treatment plant. The bonds bear interest from 4% to 5% and are due in annual installments on June 1 through June 1, 2035 that range from $455,000 to $845,000.

At June 30, 2024, the principal amount outstanding on the bonds was $7,365,000.

The City has pledged future water system revenues, net of specific operating expenses, to repay the bonds on parity with a pledge that services all parity obligations. The bonds are payable solely from water customer net revenues and any moneys in the bond service fund and the reserve fund. For the year ended June 30, 2024, principal and interest paid, and total customer net revenues were $886,500 and $6,173,810, respectively. In the Statement of Net Position, the bonds include the related unamortized premium which is being amortized and charged to expense over the term of the bonds. At June 30, 2024, the unamortized premium was $1,106,775.
2023 Lease Revenue Refunding Bonds. On September 13, 2023, the San Luis Obispo Public Financing Authority issued $45,780,000 in Lease Revenue Bonds with premium of $3,707,639 for the construction of the Cultural Arts District Parking Structure and to refund the 2012 Lease Revenue Bonds. Debt service payments of approximately $2.8 million per year are expected to be paid from revenues generated by the City’s Parking Fund through December 2053. Of the original bond issuance, $43,860,000 was used for financing the construction of the Cultural Arts District Parking Structure and the remainder was used for governmental-type activities.

At June 30, 2024, the principal amount outstanding on the bonds was $43,860,000 with unamortized premium of $3,458,671. 108

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024

Note 7: Long Term Debt (Continued)
At June 30, 2024, the aggregate maturities of the business-type revenue bonds were as follows:

Loans
2001 CIEDB State Loan. In 2001, the City obtained a note in the amount of $7,765,900 to go towards expanding the Marsh Street parking structure. The note bears an interest rate of 3.37% due in semi-annual installments on February 1 and August 1 through August 31, 2031 that range from $169,000 to $396,000. At June 30, 2024, the principal amount outstanding on the loan was $2,857,619.
2009 Infrastructure and Economic Development Bank Loan– Tank Farm Lift Station. In 2009, the City obtained a note in the amount of $10,000,000 to go towards the Tank Farm lift station and main sewer project. The note bears an interest rate of 3.25% due in annual installments on December 1 through December 1, 2037 that range from $212,600 to $520,744. At June 30, 2024, the principal amount outstanding on the loan was $5,971,321.

The City has pledged future sewer system revenues, net of specific operating expenses, to repay the loan. The loan is payable solely from sewer customer net revenues. For the year ended June 30, 2024, principal and interest paid, and total customer net revenues were $532,261 and $8,023,296, respectively.
2018 Clean Water State Revolving Fund Loan. In 2018, the City Council approved the Clean Water State Revolving Fund loan agreement between the City of San Luis Obispo and the California State Water Resources Control Board for a $140 million loan for the Water Resource Recovery Facility Project. The City will receive $4 million in principal forgiveness and the remaining $136 million will be repaid over 30 years. The applicable interest rate was set at 1.8%. As of June 30, 2024, the City had partially drawn down the loan and had an outstanding principal balance of $118,132,363. The loan requires a $4.9 million reserve, which is reflected in the Sewer Fund.
2020 CIEDB State Loan. In 2020, the City obtained a note in the amount of $14,300,000 for improvements to the City’s Water Treatment Plant to provide enhanced reliability and energy and operational efficiencies. The note bears an interest rate of 2.5% and a term of 20 years. At June 30, 2024, the City had partially drawn down the loan and had an outstanding principal balance of $11,102,800.

Revenue Bonds
For the Year Ending June 30, Principal Interest Total
2025 $ 1,727,477 $ 2,709,478 $ 4,436,955
2026 1,815,907 2,621,907 4,437,814
2027 1,795,278 2,529,794 4,325,071
2028 1,888,323 2,438,713 4,327,036
2029 1,984,819 2,342,979 4,327,797
2030-2034 9,951,051 10,255,833 20,206,884
2035-2039 7,464,175 7,985,928 15,450,103
2040-2044 7,262,398 6,264,776 13,527,174
2045-2049 9,317,523 4,203,065 13,520,587
2050-2054 11,964,851 1,555,715 13,520,566
Subtotal 55,171,800 42,908,187 98,079,987
Unamortized bond Premium 4,965,712 4,965,712 -
Total $ 60,137,512 $ 42,908,187 $ 103,045,699
109

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024

Note 7: Long Term Debt (Continued)
At June 30, 2024, the aggregate maturities of the aforementioned business-type loans were as follows:

Installment Sale Agreements
2008 Suntrust Loan. In 2008, the Board entered into an installment sale contract financing $2,050,000 to finance the Tank Farm lift station. The terms state an interest rate of 4.2% due in annual installments through 2023 that range from $372,900 to $607,200. At June 30, 2024, the principal amount outstanding on the loan was $0.

US Bancorp 2014 Wastewater Lease. In 2013, the Board entered into an installment sale contract financing $7,479,000 to finance the acquisition and installation of improvements to its water reclamation facility. The note bears an interest rate of 2.8994% due in annual installments on June 1 and December 1 through December 1, 2028 that range from $372,900 to $607,200. At June 30, 2024, the principal amount outstanding on the loan was $2,869,551.

At June 30, 2024, the aggregate maturities of the aforementioned business-type installment sale agreements were as follows:

There are a number of limitations and restrictions contained in the various bond indentures. City management believes that the City has complied with the indenture requirements. Security for revenue bonds is paid from receipts or net income and amounts in funds or accounts established under bond indentures.

Special Assessment Debt Without City Commitment
Special assessment districts have been established in various parts of the City to provide improvements to properties located in those districts. Properties in these districts are assessed for the cost of improvements; these assessments are payable solely by property owners over the term of the debt issued to finance these improvements. The City is not legally or morally obligated to pay these debts or be the purchaser of last resort of any foreclosed properties in these special assessment districts, nor is it obligated to advance City funds to repay these debts in the event of default by any of these districts. At June 30, 2024, the balances of these Districts’ outstanding debt were as follows:

City of San Luis Obispo Community Facilities District No.2019-1 Special Tax Bonds, Series 2021 $19,530,000 For the Year Ending June 30, Principal Interest Total
2025 $ 4,192,423 $ 2,616,919 $ 6,809,341
2026 4,376,673 2,535,885 6,912,559
2027 4,469,227 2,444,852 6,914,080
2028 4,563,854 2,390,713 6,954,566
2029 4,660,603 2,256,587 6,917,189
2030-2034 24,003,040 9,803,373 33,806,413
2035-2039 24,756,274 7,361,763 32,118,037
2040-2044 20,370,699 5,145,925 25,516,624
2045-2049 22,246,853 3,289,355 25,536,209
2050-2054 24,424,458 1,245,087 25,669,545
$ 138,064,103 $ 39,090,459 $ 154,009,201
For the Year Ending June 30, Principal Interest Total
2025 $ 541,575 $ 75,364 $ 616,939
2026 557,280 59,431 616,711
2027 573,441 43,035 616,476
2028 590,071 26,164 616,235
2029 607,184 8,804 615,988
$ 2,869,551 $ 212,798 $ 3,082,349
110

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024

Note 8: Pension Plans
The City contributes to the California Public Employees’ Retirement System (CalPERS) for its employees. The City participates in one agent multiple-employer plan for its miscellaneous employees (Miscellaneous Plan) and one cost-sharing multiple-employer plan for its safety employees (Safety Plan). The Miscellaneous Plan is described in the first section of the footnote under AgentMultiple Employer Plan and the Safety Plan follows and is described in the second section of the footnote under Cost-Sharing Employer Plan. A summary of the government-wide balances for all Plans at June 30, 2024 are as follows:

Agent-Multiple Employer Plan
General Information about the Pension Plan
Plan Descriptions. As noted above, the City contributes to CalPERS for a defined benefit pension plan for all qualified permanent and probationary employees. CalPERS acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided. CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment for Tier 1 employees. Tier 2 and PEPRA employees are based on a three-year average of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for the plan are applied as specified by the Public Employees’ Retirement Law.

The Miscellaneous Plan’s provisions and benefits by tier in effect at June 30, 2024, are summarized as follows:

Net Pension Deferred Outflows Deferred Inflows Pension
Liability of Resources of Resources Expense
Miscellaneous Plan $ 25,732,212 94,785,929 $ 24,369 $ 14,319,486 $ Safety Plan 37,071,779 86,327,322 6,540,623 10,798,207
Total Government-Wide $ 62,803,991 181,113,251 $ 6,564,992 $ 25,117,693 $ Prior to On or after On or after
Hire date December 6, 2012 December 6, 2012 January 1, 2013 Benefit formula 2.7% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 63 52 - 67
Monthly benefits, as a % of
eligible compensation 2.0% to 2.7% 1.092% to 2.418% 1.0% to 2.5% Required employee contribution rates 7.520% 7.520% 7.00% Required employer contribution rates 10.530% 10.530% 10.530% Required unfunded accrued liability payment - (1) - (1) $ 6,616,622 (1) -Combined with on or after January 1, 2013
Tiers within the Miscellaneous Plan
111

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024

Note 8: Pension Plans (Continued)
While the City's Miscellaneous Plan is not closed to new entrants, the component option of 2.7% @ 55 is closed to new entrants.

Classic Members as defined by CalPERS entering the City's Miscellaneous Plan would enter the 2% @ 60 option while New Members as defined by CalPERS entering the City Miscellaneous Plan would enter the 2% @ 62 option.

Employees Covered. As of the measurement date June 30, 2023, the following employees were covered by the benefit terms for the Miscellaneous Plan:

Contributions. Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employees that are classified as unrepresented management or unrepresented confidential contribute 1.5% of pay toward the cost of the City’s share of the annual required contribution. During the measurement period, the City contributions totaled $11,050,993.

Net Pension Liability
The City’s net pension liability for the Miscellaneous Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2023, using an annual actuarial valuation as of June 30, 2022 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Assumptions. The total pension liability in the June 30, 2022 actuarial valuation was determined using the following actuarial assumptions:

Miscellaneous Plan
Inactive employees or beneficiaries
currently receiving benefits 467
Inactive employees entitled to but
not yet receiving benefits 460
Active employees 341
Total 1,268
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increase
Mortality (1)
Post Retirement Benefit Increase

2.30%

6.90%
Entry-Age Normal Cost Method
June 30, 2023
Miscellaneous Plan
June 30, 2022
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and review of Acturial Assumptions. Mortality rate incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 CalPERS Experience Study report from Novemvber 2021 that can be found on the CalPERS website.

The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.30% Derived using CalPERS' Membership Data for all Funds
Varies by Entry Age and Service
112

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024

Note 8: Pension Plans (Continued)
Discount Rate. The discount rate used to measure the total pension liability for the Plan was 6.90%. The projection of cash flows used to determine the discount rate for each Plan assumed that contributions from all plan members in the Public Employees Retirement Fund (PERF) will be made at the current member contribution rates that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, each Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members for all plans in the PERF. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability for the Plan.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which bestestimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the longterm projected portfolio return.

The table below reflects the long-term expected real rate of return by asset class.

Assumed
Asset
Asset Class Allocation Real Return (1) (2)
Global Equity - Cap-weighted 30.0% 4.54%
Global Equity - Non-Cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
(1) An expected inflation of 2.30% used for this period (2) Figures are based on the 2021-22 Asset Liability Management Study Miscellaneous Plan
113

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024

Note 8: Pension Plans (Continued)
Changes in the Net Pension Liability
The changes in the Net Pension Liability for the Miscellaneous Plan follows:

Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents the net pension liability of the City for the Plan, calculated using the discount rate for each Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Pension Plan Fiduciary Net Position. Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Plan Net
Total Fiduciary Pension
Pension Net Liability/
Liability Position (Asset)
Balance at June 30, 2022 $ 259,710,763 $ 168,315,728 $ 91,395,035 Changes during the year:

Service cost 4,695,253 - 4,695,253
Interest on the total pension liability 17,884,042 - 17,884,042 Changes of Benefit Terms 293,205 - 293,205
Changes in assumptions - - -
Differences between expected and
actual experience 4,537,569 - 4,537,569
Contribution - employer - 11,050,993 (11,050,993)
Contribution - employee - 2,606,854 (2,606,854)
Net investment income - 10,485,099 (10,485,099)
Benefit payments, including refunds
of employee contributions (15,400,292) (15,400,292) -
Administrative expense - (123,771) 123,771
Net changes 12,009,777 8,618,883 3,390,894
Balance at June 30, 2023 $ 271,720,540 $ 176,934,611 $ 94,785,929 Miscellaneous Plan
1% Decrease 5.90%
Net Pension Liability $ 129,324,201
Current Discount Rate 6.90%
Net Pension Liability $ 94,785,929
1% Increase 7.90%
Net Pension Liability $ 66,194,286
114

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024

Note 8: Pension Plans (Continued)
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2024, the City’s pension expense for the Miscellaneous Plan was $14,319,486. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

The deferred outflows of resources related to contributions subsequent to the measurement date of $11,022,370 will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Payable to the Pension Plan
At June 30, 2024, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2024.

Cost-Sharing Employer Plan
General Information about the Pension Plan
Plan Descriptions. As noted above, the City contributes to CalPERS for a defined benefit pension plan for all qualified permanent and probationary employees. CalPERS acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to
measurement date $ 11,022,370 $ -
Changes in assumptions 3,200,227 -
Differences between expected and
actual experiences 3,484,817 (24,369)
Net differences between projected and
actual earnings on plan investments 8,024,798 -
Total $ 25,732,212 $ (24,369) 0
Miscellaneous Plan
Measurement Period
Ended June 30 Amount
2024 5,567,517 $
2025 3,097,655
2026 5,810,451
2027 209,850
$ 14,685,473
Miscellaneous Plan
115

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024

Note 8: Pension Plans (Continued)
The City participates in five tiers of the safety cost-sharing multiple-employer plan. The Safety Plan tiers consist of Safety Tier 1 (police and fire), Police Tier 2, Fire Tier 2, Police PEPRA and Fire PEPRA.

Benefits Provided. CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits.

All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: The Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plan’s provisions and benefits within each tier in effect at June 30, 2024, are summarized as follows:

The Safety Tier 1 is closed to new entrants.

Contributions. Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on July 1st following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30th by CalPERS.

The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Members of the Police Officers Association contribute 3% of pay toward the cost of the City's share of the annual required contribution. Members of the International Association of Firefighters, Local 3523 contribute 3% of pay toward the cost of the City’s share of the annual required contribution.

For the year ended June 30, 2024, the contributions recognized as part of net pension liabilities were $10,016,823.

Police Fire Police Fire
Prior to Prior to On or after On or after
Hire date December 6, 2012 August 30, 2012 December 6, 2012 August 30, 2012 Benefit formula 3.0% @ 50 3.0% @ 50 2.0% @ 50 3.0% @ 55 Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 55 50-55 50 - 55
Monthly benefits, as a % of eligible compensation 3.00% 3.00% 2.0% to 2.7% 2.4% to 3% Required employee contribution rates 8.990% 8.990% 8.950% 8.990% Required employer contribution rates 25.640% 29.090% 21.780% 24.790% Required unfunded accrued liability payment $ 6,091,310 $ - (1) $ - - $ Police PEPRA Fire PEPRA
On or after On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 2.7% @ 57 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50-57 50-57
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 2.0% to 2.7% Required employee contribution rates 13.750% 13.750%
Required employer contribution rates 14.500% 14.500%
Required unfunded accrued liability payment $ - $ -
(1) - Combined with Police Tier 1
Safety Tier 1 Safety Tier 2
116

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024

Note 8: Pension Plans (Continued)
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2024, the City reported a net pension liability for its proportionate share of the Plan’s net pension liability of $86,327,322.

The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2023, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability as of the measurement dates of June 30, 2022 and 2023 was as follows:

For the year ended June 30, 2024, the City recognized pension expense of $10,798,207 for the Safety Plan. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Proportionate Share
Percentage share at 6/30/2022 0.71733%
Percentage share at 6/30/2023 0.69198%
Change - Increase/(Decrease) -0.02535%
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 10,004,005 $ - $ Changes in assumptions 5,038,178 -
Differences between expected and actual experiences 6,338,017 542,601 - 11,813,871
Net Difference between employer's contributions and
proprtionate chare of contributions 3,877,708 189,032
Change in employer's proportion - 5,808,990
Total $ 6,540,623 37,071,779 $
Safety Plan
Differences between projected and actual investment earnings 117

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024

Note 8: Pension Plans (Continued)
Pension contributions subsequent to the measurement date of $10,004,005 are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30,2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Actuarial Assumptions. The total pension liabilities in the June 30, 2022, actuarial valuations for the Safety Plan was determined using the following actuarial assumptions:

Discount Rate. The discount rate used to measure the total pension liability for the Plan was 6.90%. The projection of cash flows used to determine the discount rate for the Plan assumed that contributions from all plan members in the Public Employees Retirement Fund (PERF) will be made at the current member contribution rates that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, each Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members for all plans in the PERF. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability for each Plan.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which bestestimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

Measurement Period
Ended June 30 Amount
2024 5,858,461 $
2025 4,429,003
2026 9,909,938
2027 329,749
$ 20,527,151
Safety Plan
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Post Retirement Benefit Increase
Mortality (1)
Entry-Age Normal Cost Method

6.90%

2.30%
Safety Plan
June 30, 2022
June 30, 2023
Varies by Entry Age and Service
Contract COLA up to 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies
Derived using CalPERS' membership data for all funds
(1) The mortatily table used was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report that can be found on the CalPERS website 118

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024

Note 8: Pension Plans (Continued)
In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the longterm projected portfolio return.

The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate. The following presents the City’s proportionate share of the net pension liability, calculated using the discount rate for the Plans as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Pension Plan Fiduciary Net Position. Detailed information about each safety plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Payable to the Pension Plan
At June 30, 2024, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2024
Assumed
Asset
Asset Class Allocation Real Return (1) (2)
Global Equity - Cap-weighted 30.0% 4.54%
Global Equity - Non-Cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
(1) An expected inflation of 2.30% used for this period (2) Figures are based on the 2021-22 Asset Liability Management Study Safety Plan
1% Decrease 5.90%
Net Pension Liability $ 120,225,237
Current Discount Rate 6.90%
Net Pension Liability $ 86,327,322
1% Increase 7.90%
Net Pension Liability $ 58,613,365
119

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024

Note 8: Pension Plans (Continued)
Defined Contribution Pension Plan
The City makes bi-weekly contributions to a 401a retirement plan (Plan) for each department head. The current contribution on behalf of each Participant equals 1% of base earnings up to the maximum allowable by law. In addition, each Participant may contribute up to 14% of earnings to the Plan. Prior to August 2018, non-department head management employees also participated in the Plan and received a 1% employer contribution.

Employees are fully vested in the City’s contributions (and interest allocated to the employee’s account) at all times. The Plan is administered by Public Agency Retirement Services (PARS). The Plan assets are held in trust for the exclusive benefit of the Participants or their Beneficiaries. The City has the right at any time to terminate the Plan by resolution of the City Council.

During the fiscal year, the City contributed $21,418 to the Plan and Participants contributed $151,939. There were no Plan forfeitures. As of June 30, 2023, the City had $0 payable to the Plan.

The City makes bi-weekly contributions to 401a retirement plans (Appointed Officials Plans) for the City Manager and City Attorney.

Employees are fully vested in the City’s contributions (and interest allocated to the employee’s account) at all times. The Appointed Officials Plans are administered by Mission Square Retirement. The Plan assets are held in trust for the exclusive benefit of the Participants or their Beneficiaries. The City has the right at any time to terminate the Plan by resolution of the City Council.

During the fiscal year, the City contributed $27,488 to the Appointed Officials Plans. There were no Plan forfeitures. As of June 30, 2023, the City had $0 payable to the Plan.

In the year 2022, The City evaluated the requirements of GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans and determined that plan didn’t meet the criteria to be reported as a fiduciary activity, as required by the above mentioned GASB Statements.

Note 9: Other Post-Employment Benefits (OPEB)
General Information about OPEB
Plan Description. The City’s primary other post-employment benefits (OPEB) cost obligation is for retiree health benefits under its election to participate in the CalPERS Health Benefit Program, an agent multiple-employer defined benefit OPEB plan, under the “unequal contribution option.” The City entered the CalPERS medical insurance program in 1993 under the Public Employees’ Medical and Hospital Care Act (PEMHCA). During the fiscal year ended June 30, 2009, the City entered into an agreement to participate in an irrevocable trust to provide a funding mechanism for retiree health benefits. The Trust, California Employers’ Retiree Benefit Trust (CERBT), is administered by CalPERS and managed by a separately appointed board, which is not under control of the City Council. This Trust is not considered a component unit of the City.

Benefits Provided. The City provides post-employment heath care insurance, in accordance with Memorandums of Understanding, to all employees who retire from the City upon or after attaining age 50 with at least 5 years of service or disability retirement.

Miscellaneous retires who are PEPRA new hires are eligible at age 52. For each retiree enrolled in a CalPERS medical plan, the employer will pay the required statutory PEMHCA minimum, which is $149 per month per retiree in calendar year 2022 and $151 per month per retiree in calendar year 2023. This amount will increase with the health care component of CPI, as announced by the CalPERS Board each year. The retiree must pay the difference between the premium amount, which depends upon the medical plan benefits selected, and the employer-paid minimum. In addition, the City pays 50% of the premium up to the retiree’s age of 65 for one grandfathered executive management retiree hired prior to August 2000.

There is no OPEB provided to terminated vested employees. The employer-paid amount will continue to a surviving spouse if the retiree elects a CalPERS survivor annuity. There are no required employee contributions, although the retiree must pay the difference between the premium and the employer-paid amount. The employer is contributing the full Actuarially Determined Contribution. 120

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024

Note 9: Other Post-Employment Benefits (OPEB) (Continued) Employees Covered. At June 30, 2023, the measurement date, the following number of employees were covered by the benefit terms:

Contributions. The contribution requirements of the plan members and the City are established and may be amended by the City.

The City prefunds the plan through CERBT by contributing at least 100% of the annual required contribution. For the measurement period, the City’s contributions totaled $1,427,129.

Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2023 and the total OPEB liability used to the calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023, based on the following actuarial methods and assumptions:

Discount Rate. The discount rate used to measure the total OPEB liability was 6.25%. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

OPEB Plan
Inactive employees or beneficiaries
currently receiving benefits 192
Inactive employees entitled to but
not yet receiving benefit payments 240
Active employees 450
Total 882
Actuarial Valuation Date June 30, 2023
Measurement Date June 30, 2023
Contribution Policy Contributes full ADC
Actuarial Assumptions:

Discount Rate and 6.25% at June 30, 2023 and 6.25% at June 30, 2022 expected Long-Term Rate of Expected City contributions projected to keep Return on Assets sufficient plan assets to pay all benefits from trust General Inflation 2.50% annually
Mortality, Retirement, Disability, Rates from CalPERS 2000-2019 Experience Study Termination
Mortality Improvement Post-retirement mortality projected fully generational with Scale MP-2021
Salary Increases Aggregate - 2.75%
Merit - CalPERS 2000-2019 Experience Study
Medical Trend Non-Medicare - 8.5% for 2025, decreasing to an ultimate rate of 3.45% in 2076 and later years.

Medicare - 7.50% (non-Kaiser) for 2025, decreasing to an ultimate rate of 3.45% in 2076 and later years
PEMHCA Minimum Increases 3.50% annually
Participation at Retirement Currently covered: 70% Currently waived: 15% 121

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024

Note 9: Other Post-Employment Benefits (OPEB) (Continued) Investments. The long-term expected rate of return on OPEB plan investments was determined using a building- block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized below:

Changes in the Net OPEB Liability
The changes in the net OPEB liability for the June 30, 2023 measurement date are as follows:

Current Expected
Target Real Rate
Asset Class Allocation of Return
Global Equity 49% 4.56%
Fixed Income 23% 1.56%
TIPS 5% -0.08%
Commodities 3% 1.22%
REITs 20% 4.06%
Assumed Long-Term Rate of Inflation 2.50%
Expected Long-Term Net Rate of Return, Rounded 6.25%
The long-term expected real rates of return are presented as geometric means.

OPEB Plan
Total Plan Fiduciary Net
OPEB Liability Net Position OPEB Liability
Balance at June 30, 2022 $ 14,918,389 $ 9,633,672 $ 5,284,717 Changes during the year:

Service cost 493,787 - 493,787
Interest on the total OPEB liability 940,850 - 940,850
Changes in assumptions (291,401) - (291,401)
Differences between Expected and
actual experience (2,105,353) (2,105,353) -
Net plan to plan resource movement
Contribution - employer - 1,427,129 (1,427,129)
Net investment income - 619,941 (619,941)
Benefit payments, including refunds -
of employee contributions (717,143) (717,143) -
Administrative expense - (8,784) 8,784
Net changes (1,679,260) 1,321,143 (3,000,403)
Balance at June 30, 2023 $ 13,239,129 $ 10,954,815 $ 2,284,314 122

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024

Note 9: Other Post-Employment Benefits (OPEB) (Continued) Sensitivity of Net OPEB Liability to Changes in the Discount Rate. The following presents the net OPEB liability at the current discount rate, as well as what the net OPEB liability would be if it were calculated using a hypothetical discount rate that is one percentage point lower or one percentage point higher than the current rate.

Sensitivity of Net OPEB Liability to Changes in Healthcare Cost Trend Rates. The following presents the net OPEB liability at current healthcare cost trend rates, as well as what the net OPEB liability would be if it were calculated using hypothetical healthcare cost trend rates that are one percentage point lower or one percentage point higher than the current rate.

OPEB Plan Fiduciary Net Position. Detailed information about the OPEB Plan’s fiduciary net position is available in the separately issued CalPERS financial reports on the CERBT.

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2024, the City’s OPEB expense was $530,486. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

OPEB Plan
1% Decrease 5.25%
Net OPEB Liability 3,951,720 $
Current Discount Rate 6.25%
Net OPEB Liability 2,284,314 $
1% Increase 7.25%
Net OPEB Liability 893,209 $
OPEB Plan
1% Decrease
Net OPEB Liability 721,054 $
Current Trend
Net OPEB Liability $ 2,284,314
1% Increase
Net OPEB Liability $ 4,205,307
Deferred Outflows Deferred Inflows
of Resources of Resources
OPEB contributions subsequent to
measurement date $ 740,550 $ -
Changes in assumptions 336,664 363,915
Differences between expected and
actual experiences 226,401 2,690,543
Net differences between projected and
actual earnings on plan investments 595,146 -
Total $ 1,898,761 $ 3,054,458
123

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024

Note 9: Other Post-Employment Benefits (OPEB) (Continued) OPEB contributions subsequent to the measurement date of $740,550 are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:

Payable to the OPEB Plan
At June 30, 2024, the City reported a payable of $0 for the outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2024.

Note 10: Deferred Compensation Plan
All employees of the City are eligible to participate in a City sponsored deferred compensation plan (457 Plan). The 457 Plan provides for the deferral of a portion of the employees’ compensation until retirement, termination, or certain other covered events.

The assets of the 457 Plan are held in trust for the exclusive benefit of Plan Participants or Beneficiaries.

Deferred contribution(s) by a participant in any taxable year will not exceed the lessor of (1) the applicable dollar amount provided under Section 457(b)(2) of the Internal Revenue Code (adjusted for cost of living under Section 457(e)(15) of the Internal Revenue Code), or (2) 100% of the participant’s includible compensation. A participant who has attained age 50 before the close of the calendar year may elect Age 50 Plus Catch-up Contributions and commence making such contributions to his/her Participant Deferral Account.

The City has the right at any time to terminate the 457 Plan by resolution of the City Council.

In the year 2022, The City evaluated the requirements of GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans and determined that plan didn’t meet the criteria to be reported as a fiduciary activity, as required by the above mentioned GASB Statements.

Fiscal Year
Ended June 30 Amount
2025 $ (317,828)
2026 (361,838)
2027 (30,353)
2028 (238,331)
2028 (164,652)
Thereafter (783,245)
$ (1,896,247)
124

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024

Note 11: Interfund Transactions
City had the following short-term interfund receivable and payable balances as of June 30, 2024:

City had the following long-term interfund receivable and payable balances as of June 30, 2024:

Interfund transfers for the year ended June 30, 2024 consist of the following:

Short-term interfund receivables and payables include temporary negative cash balances that result from the timing of cash flows at year end and the time lag between the dates that transactions are recorded in the accounting system and payment between funds are made. Liquidation of interfund receivables and payables typically occurs in the first quarter of the subsequent fiscal year. Interfund balances between governmental funds are not included in the government-wide Statement of Net Position.

Advances in the amount of $4,845,000 from the General Fund to the Parking Fund was a loan provided by the General Fund to the Parking Fund for the acquisition of the property located at 1166 Higuera Street. The general fund will be reimbursed by the Parking Fund at a rate of 2.88% and a repayment term of 30 years, with deferral of principal payments for three years and interest payments starting immediately.

Interfund transfers are used to move revenues from the fund with collection authorization to the debt service fund as debt service principal and interest payments become due or to move unrestricted revenues to finance various programs that the government must account for in other funds in accordance with budgetary authorizations. This may include amounts provided as matching funds for various grant programs.

Due from
Other Funds
Due to Other
Funds
General Fund 166,601 $ - $
Nonmajor Governmental Funds - 166,601
Total $ 166,601 $ 166,601
Advances from
Other Funds
Advances to
Other Funds
General Fund - $ 4,845,000 $
Parking Fund 4,845,000 -
Total $ 4,845,000 - $
Non-Major
General Governmental Water Fund Sewer Parking
Transfer Out Fund Funds Funds Fund Fund Total
General Fund $ 7,626,984 - $ $ 1,075,110 $ 1,192,689 $ 368,233 $ 10,263,016 Capital Outlay Fund 29,632,692 404,939 - - 30,037,631 - Non-Major Governmental Fund 11,105,310 2,200,000 - - 13,305,310 - Total $ 10,231,923 40,738,002 $ $ 1,075,110 $ 1,192,689 $ 368,233 $ 53,605,957 Transfer In
125

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024

Note 12: Joint Ventures, Jointly Governed Organizations and Operating Agreements The City participates in three multi-governmental organizations: the Whale Rock Commission, the San Luis Obispo Regional Transit Authority, and the San Luis Obispo Council of Governments. The City also has an operating agreement related to Nacimiento Water Supply Project. The following provides a general description of each of these agencies and operating agreements along with a summary of financial information and indebtedness:

Whale Rock Commission
General Description. The Whale Rock Commission (Commission) was established on December 12, 1960 to govern the operations of the Whale Rock Reservoir. The Commission is composed of six voting members and two non-voting members: three voting members are appointed by the City; one is appointed by California Polytechnic State University; one by California Men's Colony; and one by the Director of Finance, State of California. The two non-voting members are position appointments: the Director of Water Resources, State of California; and the Water Superintendent, City of San Luis Obispo. The Commission is authorized by its respective agencies to establish policies for the operation of the Reservoir, to contract for the sale of excess water, and to approve the annual budget.

The City, in accordance with established policies of the Commission, operates and maintains the Reservoir; prepares and recommends the annual budget; and maintains the fiscal records and funds of the Commission. The Whale Rock Custodial Fund is used to account for the Commission's ongoing operating activities. Ownership in the Reservoir is as follows: 55.05%, City of San Luis Obispo; 33.71%, California Polytechnic State University; and 11.24%, California Men's Colony. The City's share of the Commission's expenses is recorded as expenses of the Water Fund. All receipts and disbursements of the Commission are included in an Custodial Fund.

Financial Information and Indebtedness. In 1959, the City issued general obligation bonds to secure a future water supply to City residents. Some of the proceeds from the bonds were used to participate with the State of California in the development of the Reservoir. Participation, which is in proportion to the original investment, includes continued operation and maintenance of the facilities. Such indebtedness was directly attributable to provision of water service, and as such, all related indebtedness was recorded in the City's Water Enterprise Fund. These bonds matured in August 1999.

The City's original investment in the Reservoir project aggregates $3,900,000 and was amortized on a straight-line basis over thirtyfive years. Separate financial statements are available from the Whale Rock Commission, 879 Morro Street, San Luis Obispo, CA 93401.

The following segment financial information for the Whale Rock Commission and the Water Fund’s related investment in the joint venture is presented as of and for the year ended June 30, 2024:

City's Investment
Joint Venture in Joint Venture
Total assets 6,421,390 $ 3,534,975 $
Total liabilities 205,962 113,381
Fund balance 6,215,428 $ 3,421,594 $
Total revenues 3,046,366 $ 1,677,024 $
Total expenditures 2,686,386 1,478,855
Excess of revenues over expenditures 359,980 $ 198,169 $ 126

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024

Note 12: Joint Ventures, Jointly Governed Organizations and Operating Agreements (Continued) San Luis Obispo Regional Transit Authority
General Description. The City is a member of the San Luis Obispo Regional Transit Authority (Authority), which was established on February 27, 1990, to operate a joint public transportation system. The Authority is composed of the Cities of Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, and San Luis Obispo, as well as the County of San Luis Obispo.

The Authority is governed by a Board of Directors comprised of representatives of each of the seven cities, in addition to the five members of the Board of Supervisors. Each member of the Board has one vote. The Board has the authority to establish policies for the operation of the transit system and to adopt an annual budget. Each member makes an annual contribution to the agency for funding the adopted budget.

Financial Information. The City allocates a portion of its Transportation Development Act funds directly to the Authority. During 2022-23 the City contributed approximately $1,068,248 of these funds to the Authority. The City's share of assets, liabilities, and fund equity has not been calculated by the Authority and therefore is not known to the City; however, based on the City's limited financial participation in the Authority, any such assets, liabilities, or equity are not believed to be significant to the basic financial statements taken as a whole. Separate financial statements are available from the Authority, 179 Cross Street, Suite A, San Luis Obispo, CA 93401.

San Luis Obispo Council of Governments
General Description. The San Luis Obispo Council of Governments (SLOCOG) was formed in 1968 through a joint powers agreement among the incorporated cities and the County of San Luis Obispo. It acts as the regional transportation planning agency for the county and is the metropolitan planning organization and the congestion management agency for the region. The governing board consists of twelve delegates, each with one vote that includes the five members of the County Board of Supervisors and one representative from each of the seven cities in the County.

Financial Information. A portion of the City's Transportation Development Act funds are directly allocated to the SLOCOG. The City's share of assets, liabilities, and fund equity has not been calculated by SLOCOG and therefore is not known to the City; however, based on the City's limited financial participation in SLOCOG, any such assets, liabilities, or equity are not believed to be significant to the basic financial statements taken as a whole. Separate financial statements are available from SLOCOG, 1114 Marsh Street, San Luis Obispo, CA 93401.

Nacimiento Water Supply Project
General Description. In 2004, the Council adopted a resolution approving an agreement with the San Luis Obispo County Flood Control and Water Conservation District (District) for the design, construction, and operations of the facilities required for the delivery of 5,482 acre-feet of water per year to the City of San Luis Obispo from the Nacimiento Water Supply Project (Project).

The agreement includes conditions relative to the costs associated with the project and how these costs will be shared and paid by the participants in the project.

Each project participant, including the City, has entered into an agreement to provide for the development, financing, construction, operation and maintenance of the Project. The agreement is a “take-or-pay” obligation: the City is obligated to pay amounts specified in the agreement whether or not water is delivered. The City is required to pay an amount equal to its share of various capital expenses relating to the funding of design costs, engineering, planning, environmental mitigation, equipping new facilities and/or construction efforts, accounting services, project administration and management, installation, grading, razing and building the Project. The City is also required to pay for its share of operating and maintenance costs. The City records these payments as operating expenses in its water enterprise fund.
127

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024

Note 12: Joint Ventures, Jointly Governed Organizations and Operating Agreements (Continued) The City is required to make payments under its agreement solely from the revenues of its water system. The City agreed to establish and collect rates and charges from the customers of the City’s water enterprise fund at levels sufficient to produce revenues equal to: (1) the costs of operating and maintaining the City’s water enterprise; plus (2) the contract payments, calculated in accordance with the delivery contract including the amounts allocated as the City’s share of capital projects installment debt service; plus (3) the coverage factor for the amounts allocated as the City’s share of capital projects installment debt service; and (4) under certain circumstances, that the City understands and agrees that the delivery contract may impose a surcharge following the occurrence of any payment default.

Financial Information. In September 2007, the District sold water revenue bonds in the amount of $196 million for the construction of the Project. In addition, the District sold water revenue bonds in the amount of $182 million. These bonds were refinanced in May 2018. Based on the City’s share of construction costs, debt service and operating and maintenance, the following summarizes the City’s Project obligations for 2023-24 and five-year projections for the 2018 bonds that will remaining outstanding following the refunding.

Separate financial statements are available from the San Luis Obispo County Flood Control and Water Conservation District, 1050 Monterey Street, San Luis Obispo, CA 93401.

Note 13: Risk Management
California Joint Powers Insurance Authority
The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 119 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.

Each member pays an annual contribution to cover estimated losses for the coverage period. This initial funding is paid at the beginning of the coverage period. After the close of the coverage period, outstanding claims are valued. A retrospective deposit computation is then conducted annually thereafter until all claims incurred during the coverage period are closed on a pool-wide basis. This subsequent cost reallocation among members based on actual claim development can result in adjustments of either refunds or additional deposits required.

The total funding requirement for self-insurance programs is estimated using actuarial models and prefunded through the annual contribution. Costs are allocated to individual agencies based on exposure (payroll) and experience (claims) relative to other members of the risk-sharing pool. Additional information regarding the cost allocation methodology is provided below.

Actual 2024 $ 4,619,372
Projected:
2025 4,621,210
2026 4,622,040
2027 4,615,840
2028 4,621,896
2029-33 23,095,219
2034-38 23,103,289
2039-41 9,320,529
Nacimiento Water Supply Obligations
128

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024

Note 13: Risk Management (Continued)
Self-Insurance Programs of the Authority
General Liability and Workers’ Compensation. The City is a member of the California Joint Powers Insurance Authority (CJPIA), which provides joint protection programs and group purchased insurance for public entities covering liability, errors and omission losses, auto liability, employment practices liability, crime, pollution, workers’ compensation injuries and coverage for city-owned property. The City has a retained limit of $500,000 per occurrence for liability and no retained limit for workers’ compensation.

Liabilities of the City are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonable estimated.

Liabilities include an amount for claims that have been incurred but not reported (IBNR). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines and damage awards. Accordingly, claims are re-evaluated periodically to consider the effects of economic and social factors. The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether or not they are attributable to specific claims. Estimated recoveries, for example from salvage or subrogation, are another component of the claim’s liability estimate.

During the past three fiscal years, none of the protection programs experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured coverage in 2023-24. CJPIA covers workers’ compensation claims up to a pooled limit of $2 million per occurrence and provides excess coverage to statutory limits with a group purchased commercial insurance policy. The City pays an annual contribution to CJPIA and may share in any member refunds in the event that pooled funding exceeds the cost of pooled claims and claim-related expenses, or the City may be required to pay additional contributions based upon CJPIA’s operating results.

Financial statements of CJPIA may be obtained from its administrative office located at 8081 Moody Street, La Palma, California 90623, or by calling (562) 467-8700.

Additional claims and lawsuits have been filed against the City in the normal course of business. It is reasonably possible that the City may be liable for claims not to exceed $500,000. In the opinion of management, the resolution of these matters will not have a material adverse effect on the financial condition of the City.

Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage from coverage in 2023-

24. Self-Insurance
The City retains the risk for workers’ compensation losses incurred prior to joining the California Joint Powers Insurance Authority.

Several member agencies of the now dissolved Central Coast Cities Self-Insurance Fund continue to participate in a non-risk sharing arrangement for claims management and the purchase of excess insurance. The participating agencies share a set of common guidelines and annually set aside premiums to pay their individual losses within their self-insured retentions. Losses are debited and investment income is credited to specific member accounts. The City has not incurred any losses in excess of insurance coverage.

Claims liabilities in the governmental funds are generally liquidated by the General Fund. 129

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024

Note 13: Risk Management (Continued)
The last actuarial study to determine the undiscounted outstanding claims liability was completed for the year ended June 30, 2024.

The liability was estimated based on the actuarial study and considered claims asserted and paid, and the time limitations for filing claims. There are no estimates for claims incurred but not reported because the time limit for filing claims has elapsed. The estimated asset at June 30, 2024 is calculated as follows:

Note 14: Commitments and Contingencies
Litigation
The City is presently involved in certain matters of litigation that have arisen in the normal course of conducting City business. City management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are adequately covered by insurance and not expected to result in a material adverse financial impact on the City.

Grant Awards
Under the terms of Federal and State grants, audits may be required, and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to requests for reimbursement to the grantor agencies. City management believes disallowances, if any, will be immaterial.

Regional Transit Authority Pension Expense
The City is presently a member agency of the San Luis Obispo Regional Transit Authority (SLORTA) (see Note 14), a duly established Joint Powers Authority (JPA) comprised of all local cities and the County of San Luis Obispo. The City’s contractual contribution to that entity is approximately 18% of the total expense. The City was advised that the Regional Transit Authority was working with CalPERS to determine whether it is required to enroll certain previously unenrolled transit employees in the CalPERS pension system and whether the entity may be liable for obligations related to the failure to enroll those employees and make contributions on their behalf. On December 10, 2019 the County Board of Supervisors approved a contract for participation of the JPA in the San Luis Obispo County Pension Trust and the Employees Retirement Plan. The current amount of potential CalPERS unfunded liability for the JPA may reach as high as $4 million. It is not anticipated that the City’s annual payment to the JPA will increase to satisfy this unfunded liability.

Self-insurance activity as of and for the year ended June 30, 2024 is summarized is as follows:

Interest earnings 14,417 $
Claims expense 50,962
Estimated liability for reported claims and settlement expenses (407,770) Assets on deposit 566,131
Estimated unpaid claims asset 158,361 $
Changes in the balances of claim assets during the past two fiscal years are as follows:

Estimated unpaid claims asset June 30, 2022 560,422 $
Claim payments and related expenditures reimbursement (542,713) Change in estimated claims asset June 30, 2023 28,884
Interest earnings 10,125
Withdrawal 200,000
Estimated unpaid claims asset June 30, 2023 256,718
Claim payments and related expenditures reimbursement (164,804) Change in estimated claims asset June 30, 2024 52,030
Interest earnings 14,417
Withdrawal -
Estimated unpaid claims asset June 30, 2024 158,361 $
130

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024

Note 15: Construction and Other Significant Commitments Construction and other significant commitments as of June 30, 2024, including encumbrances outstanding at year-end, are as follows:

Long-term construction contracts are billed and paid on a percentage completion basis by construction phase.

Note 16: Fund Balance Deficiency
As of June 30, 2024, the City had fund with negative fund balance for Downtown BID and Debt Service fund as below.

Note 17: New Accounting Standards
Accounting Standards Adopted
 GASB Statement No. 100, Accounting Changes and Error Corrections-an Amendment of GASB Statement No. 62 – The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The City has implemented this statement in current fiscal year.  GASB Statement No. 101, Compensated Absences – The primary objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The City has implemented this statement in current fiscal year.

General Fund $ 2,205,473
Special Revenue Funds 199,541
Capital Project Funds 8,821,483
Enterprise Funds:

Water 7,135,401
Sewer 10,759,831
Parking 33,763,836
Transit 9,720,725
Total $ 72,606,290
Funds Deficiency
Downtown BID $ (133,562)
Debt Service (158,557)
Total $ (292,119)
131

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2024

Note 17: New Accounting Standards (Continued)
New Accounting Standards
The city is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following GASB Statements:
 GASB Statement No. 102 – Certain Risk Disclosures – The primary objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints.
 GASB Statement No. 103 – Financial Reporting Model Improvements - The primary objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This Statement also addresses certain application issues.
 GASB Statement No. 104 – Disclosure of Certain Capital Assets – The primary objective of this Statement is to provide users of governmental financial statements with essential information about certain types of capital assets.

Note 18: Prior Period Adjustments
During 2024, the City recorded the following prior period adjustments:
(1) Error correction to Community Development Block Grant (CDBG) Fund - Beginning fund balance of the CDBG fund was restated due to the reclassification of prior year deferred inflows of resources to fund balance. The City recorded expenditures when issuing the loans in the prior years and recorded deferred inflows of resources and loan receivables when recording the loans correctly. An adjustment was necessary to properly restate the deferred inflows of resources. Therefore, deferred inflows of resources, were overstated by $1,112,944, and net position was understated by $1,112,944 for the fiscal year ended June 30, 2023. (2) Error correction to Transportation Impact Fee Fund and MASP Park Fund – Cash and fund balances were restated to record the pay back of interfund borrowing between Transportation Impact Fee Fund and MASP Park Fund. The payback of the interfund borrowing from MASP Park fund to Transportation Impact Fee Fund was not recorded in the past and adjustment was necessary to properly restate the cash and fund balances. Therefore, cash in the Transportation Impact Fee fund was overstated by $1,504,676, fund balance was overstated by $1,504,676 for the fiscal year ended June 30, 2023, cash in the MASP fund was understated by $1,504,676, fund balance was understated by $1,504,676 for the fiscal year ended June 30, 2023. The net impact of this error correction on the fund balance of nonmajor funds is zero. 6/30/2023
As Previously
Reported
Error Correction
(1)(2)
7/1/2023
As Restated
Governmental Funds 111,232,587 $ 1,112,944 $ 112,345,531 $ Nonmajor Funds 44,196,801 1,112,944 45,309,745
132

REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
133

134

City of San Luis Obispo, California
Budgetary Comparison Schedule
General Fund
For the Fiscal Year Ended June 30, 2024
Original
Budget
Final
Budget Actual
Variance With
Final Budget
Positive
(Negative)
REVENUES:

Taxes and franchise fees:

Sales and use tax - general $ 22,578,995 $ 22,578,995 $ 22,285,972 $ (293,023) Transaction and use tax - Local Revenue Measure 30,262,098 30,262,098 30,597,288 335,190 Property tax 15,352,066 15,742,015 16,379,368 637,353
Transient occupancy tax 10,704,000 10,704,000 11,063,012 359,012 Utility users tax 5,710,320 6,332,000 6,301,505 (30,495) Property tax in lieu of VLF 6,475,114 6,948,663 6,815,975 (132,688) Franchise taxes 1,854,000 2,000,000 2,366,286 366,286
Business tax 4,352,293 4,352,293 2,941,928 (1,410,365)
Cannabis Tax - - 1,116,495 1,116,495
Real property transfer tax 172,606 173,092 528,088 354,996 Total taxes 97,461,492 99,093,156 100,395,917 1,302,761 Fines, forfeitures and penalties 223,071 206,071 266,103 60,032 Use of money and property 1,115,000 230,000 3,907,185 2,792,185 Subventions and grants:

Other State and Federal grants 664,511 1,047,153 1,992,470 945,317 Other subventions and grants 498,988 550,000 520,952 (29,048) Total subventions and grants 1,163,499 1,597,153 2,513,422 916,269 Charges for services:

Public safety:

Police 511,467 683,047 896,910 213,863
Fire:

Medical emergency recovery 650,154 580,136 652,679 2,525 Fire safety/hazardous materials permits 991,810 994,364 1,026,640 32,276 Other fire revenues 5,890 50,024 67,766 17,742
Community development:

Planning and zoning fees 2,453,793 2,548,217 1,491,167 (1,057,050) Construction plan and check inspections 3,821,743 3,821,743 4,057,132 235,389 Infrastructure plan check and inspections - 808,190 - 808,190 Culture and recreation:

Adult athletic fees 279,720 248,020 310,283 62,263
Youth athletic fees 882,576 903,596 1,157,352 253,756
Rental and use fees 394,448 394,448 357,735 (36,713)
Aquatics 338,700 377,858 363,569 (14,289)
Golf course 284,000 264,000 287,861 23,861
General government:

Other service charges 697,050 725,224 829,594 104,370
Total charges for services 11,241,333 11,660,695 12,306,878 646,183 Impact Fees - 53,830 - 53,830
Other revenues 469,100 496,773 624,261 127,488
Total Revenues 110,788,495 114,168,848 120,067,596 5,898,748 (Continued)
135

City of San Luis Obispo, California
Budgetary Comparison Schedule
General Fund, continued
For the Fiscal Year Ended June 30, 2024

Original
Budget
Final
Budget Actual
Variance With
Final Budget
Positive
(Negative)
Expenditures:

Public Safety:

Police protection:

Administration 2,806,821 2,300,494 2,478,670 328,151
Investigations 3,057,865 3,165,279 3,200,666 (35,387)
Neighborhood services 302,867 302,353 287,621 14,732
Support services 3,596,650 3,699,019 3,411,429 287,590
Patrol services 11,914,934 12,492,203 12,929,619 (437,416) Traffic safety 945,069 913,242 938,148 6,921
Total police protection 22,086,053 23,410,744 23,246,153 164,591 Fire and environmental safety:

Administration 1,337,074 1,292,345 1,227,817 109,257
Emergency response 11,826,682 12,509,683 12,688,880 (179,197) Fire Apparatus Services 489,400 526,181 543,133 (16,952) Hazard protection 1,079,429 1,035,824 1,009,920 69,509
Training 148,605 113,448 161,061 (12,456)
Disaster preparedness 195,444 210,460 161,384 49,076
Mobile Crisis Unit 313,423 320,417 160,282 153,141
Total fire and environmental safety 15,273,559 16,124,854 15,952,477 172,377 Total public safety 37,359,612 39,535,599 39,198,630 336,969 Transportation:

Transportation planning and engineering 1,129,766 1,080,054 1,081,726 48,040 Street and sidewalk maintenance 2,349,855 2,303,631 2,159,332 144,299 Traffic signals and street lights 596,347 643,266 641,707 1,559 Creek and flood protection 1,751,827 1,524,712 1,652,306 99,521 Total transportation 5,828,489 5,550,967 5,535,071 293,418 Culture and Recreation:

Recreation programs:

Recreation administration 880,890 858,036 863,943 16,947 Aquatics/Sinsheimer park facilities 610,211 605,083 651,870 (41,659) Children's services 1,413,794 1,432,503 1,352,454 80,049 Facilities 355,639 337,684 362,366 24,682
Special events 10,500 10,500 10,833 (333)
Recreational sports 696,591 707,143 612,254 94,889
Golf course 806,211 814,862 735,748 79,114
Ranger services 898,725 916,061 836,599 79,462
Maintenance programs:

Swim center maintenance 673,110 676,155 626,979 49,176
Parks and landscape maintenance 4,126,238 4,264,611 3,824,940 439,671 Tree maintenance 368,367 306,024 275,854 30,170
Cultural and social service programs: Human relations
Human relations 595,806 651,713 611,540 40,173
Cultural activities 365,161 365,161 348,269 16,892
Total leisure, cultural and social services 11,773,262 11,998,201 11,088,967 909,234 (Continued)
136

City of San Luis Obispo, California
Budgetary Comparison Schedule
General Fund, continued
For the Fiscal Year Ended June 30, 2024

Original
Budget
Final
Budget Actual
Variance With
Final Budget
Positive
(Negative)
Community Development:

Planning:

Commissions and communities 37,240 37,240 10,689 26,551 Community development administration 972,639 954,447 942,139 30,500 Long-range planning 989,596 1,126,347 874,873 251,474
Development review 1,962,136 1,942,382 1,521,667 440,469 Natural resource protection 1,169,348 1,024,108 1,108,266 61,082 Construction regulation:

Building and safety 2,741,940 3,085,371 2,691,300 50,640 CIP project engineering 2,897,864 3,134,176 2,803,106 331,070 Economic health:

Community promotion 427,580 411,735 412,841 14,739
Economic development 1,091,178 928,984 1,004,411 86,767 Housing 1,203,675 1,227,724 1,131,247 96,477
Total community development 13,475,402 13,890,309 12,500,539 1,389,770 General Government:

Legislation:

Council 244,185 247,207 226,753 20,454
General administration:

City administration 2,478,926 2,258,771 2,367,522 111,404 Public works administration 1,510,372 1,454,917 1,576,621 (66,249) Legal services:

City attorney 1,539,502 1,425,044 1,470,929 68,573
City clerk services:

Administration and records 757,787 733,519 605,003 128,516 Organization support services:

Human resource administration 7,898,050 7,643,300 6,743,864 1,154,186 Finance and administration 2,724,046 2,384,653 2,088,171 635,875 Revenue management 531,091 550,776 492,769 38,322
Accounting 1,343,658 1,374,790 1,278,669 96,121
Finance non-departmental 1,100,883 979,368 299,703 679,665 Network services 3,504,523 3,527,844 3,031,188 496,656
Wellness program 53,358 53,358 49,456 3,902
Building and vehicle maintenance:

Buildings 1,534,669 1,475,594 1,450,118 25,476
Vehicle and equipment maintenance 1,453,372 1,462,995 1,391,774 71,221 Total general government before cost
reimbursement 25,709,894 26,536,663 23,072,540 3,464,123 Cost reimbursement (Note 3 to RSI) (5,511,628) (5,511,628) (5,511,628) - Total general government 21 20,198,266 17 ,025,035 3 ,560,912 ,464,123 Debt Service
Principal - - 363,033 -
Interest and Fiscal Charges - 52,508 - -
(Continued)
137

City of San Luis Obispo, California
Budgetary Comparison Schedule
General Fund, continued
For the Fiscal Year Ended June 30, 2024

Original
Budget
Final
Budget Actual
Variance With
Final Budget
Positive
(Negative)
Capital Outlay:

General government - - 250,801 (250,801)
Total capital outlay - - 250,801 (250,801)
Total Expenditures 88,357,510 92,277,633 86,550,461 6,142,713 Excess of Revenues Over Expenditures 22,430,985 21,891,215 33,517,135 11,625,920 Other Financing Sources (Uses)
Other Financing Sources – SBITA - - 137,233 137,233
Other Financing Sources – bond issuances - 2,060,053 - 2,060,053 Other Financing Uses - Payment to Escrow - - (2,447,737) (2,447,737) Transfers in 13,982,756 19,167,556 24,511,772 5,344,216 Transfers out (53,044,675) (44,777,752) (54,986,758) (1,942,083) Total other financing uses (30,794,996) (33,877,119) (30,725,437) 3,151,682 Net Change in Fund Balance (8,364,011) (11,985,904) 2,791,698 14,777,602 $ Fund Balance, Beginning of the Year 42,538,068 42,538,068 42,538,068 Fund Balance, End of Year $ 34,174,057 $ 30,552,164 $ 45,329,766 138

City of San Luis Obispo, California
Schedule of the Changes in the Net Pension Liability and Related Ratios Miscellaneous Agent Multiple-Employer Plan
June 30, 2024
Last 10 Years
Fiscal Year 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Measurement Period 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 Total pension liability:

Service Cost $ 4,695,253 $ 4,364,490 $ 3,939,785 $ 3,681,240 $ 4,042,717 $ 4,328,129 $ 4,124,832 $ 3,580,882 $ 3,578,172 $ 3,703,087 Interest on total pension liability 17,884,042 17,090,797 16,589,680 16,160,011 15,531,812 14,778,918 14,197,897 13,688,523 13,193,597 12,756,967 Changes of Benefits Terms 293,205
Difference between expected and actual experience 4,537,569 818,065 (755,414) 1,869,474 2,966,923 1,445,049 694,843 (1,160,933) (2,433,791) - Changes in assumptions 8,123,651 - - - (1,292,326) - 11,219,603 - (3,057,724) - Benefit payments, including refunds
of employee contributions (14,509,974) (15,400,292) (13,518,666) (12,892,847) (12,061,701) (10,740,816) (10,161,053) (9,476,508) (8,808,668) (8,258,611) Net change in total pension liability 12,009,777 15,887,029 6,255,385 8,817,878 10,479,751 8,518,954 20,076,122 6,631,964 2,471,586 8,201,443 Total pension liability - beginning 259,710,763 243,823,734 237,568,349 228,750,471 218,270,720 209,751,766 189,675,644 183,043,680 180,572,094 172,370,651 Total pension liability - ending (a) $ 271,720,540 $ 259,710,763 $ 243,823,734 237,568,349 $ 228,750,471 $ 218,270,720 $ 209,751,766 $ 189,675,644 $ 183,043,680 $ 180,572,094 $ Plan fiduciary net position:

Contributions - employer 11,050,993 $ 16,384,823 $ 8,246,755 $ 7,709,918 $ 9,361,882 $ 6,693,987 $ 6,776,849 $ 6,122,173 $ 5,027,356 $ 4,631,254 $ Contributions - employee 2,606,854 2,269,339 2,056,274 1,889,583 1,775,245 1,820,697 1,841,331 1,666,606 1,509,834 1,664,654 Net investment income 10,485,099 (13,547,758) 32,904,570 7,205,266 9,124,520 10,820,033 13,053,453 677,557 2,673,657 17,746,607 Benefit payments (15,400,292) (14,509,974) (13,518,666) (12,892,847) (12,061,701) (10,740,816) (10,161,053) (9,476,508) (8,808,668) (8,258,611) Net plan to plan resource movement - - - - - (316) (2,936) - - - Administrative expense (123,771) (110,778) (148,132) (203,824) (97,394) (200,184) (172,935) (72,044) (133,042) - Other miscellaneous income/(expense) - - - - 316 (380,153) - - - - Net change in plan fiduciary net position 8,618,883 (9,514,348) 29,540,801 3,708,096 8,102,868 8,013,248 11,334,709 (1,082,216) 269,137 15,783,904 Plan fiduciary net position - beginning 168,315,728 177,830,076 148,289,275 144,581,179 136,478,311 128,465,063 117,130,354 118,212,570 117,943,433 102,159,529 Plan fiduciary net position - ending (b) $ 176,934,611 $ 168,315,728 $ 177,830,076 $ 148,289,275 $ 144,581,179 $ 136,478,311 $ 128,465,063 $ 117,130,354 $ 118,212,570 $ 117,943,433 Net pension liability (asset) - ending (a) - (b) $ 94,785,929 $ 91,395,035 $ 65,993,658 $ 89,279,074 $ 84,169,292 $ 81,792,409 $ 81,286,703 $ 72,545,290 $ 64,831,110 $ 62,628,661 Plan fiduciary net position as a percentage of the total pensionliability 65.12% 64.81% 72.93% 62.42% 63.20% 62.53% 61.25% 61.75% 64.58% 65.32% Covered payroll 29,794,206 24,574,829 23,805,348 21,795,380 22,951,725 23,736,588 21,841,841 20,499,668 19,769,997 19,235,818 Net pension liability as percentage of covered payroll 318.14% 371.91% 277.22% 409.62% 366.72% 344.58% 372.16% 353.89% 327.93% 325.58% Benefit changes. The figures above include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes)that occurred after the June 30, 2019 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.Changes in assumptions.There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate ofreturn, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project comp ound (geometric)returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERSExperience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement rate June 30, 2017 through June 30, 2021, 7.65 % for measurement dates June 30, 2015 through June 30, 2016 and 7.50% for measurementdate June 30, 2014. 139

City of San Luis Obispo, California
Schedule of the Pension Plan Contributions
Miscellaneous Agent Multiple-Employer Plan
June 30, 2024
Last 10 Years
Fiscal Year 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Actuarially determined contribution $ 6,938,929 $ 9,573,782 $ 8,851,802 $ 8,246,755 $ 7,709,918 $ 7,093,882 $ 6,693,987 $ 6,776,849 $ 6,122,173 $ 5,027,356Contributions in relation to the actuarially determined contribution (11,022,370) (11,050,993) (16,384,823) (8,246,755) (7,709,918) (9,361,882) (6,693,987) (6,776,849) (6,122,173) (5,027,356) Contribution deficiency (excess) $ (4,083,441) $ (1,477,211) $ (7,533,021) $ - $ (2,268,000) - $ $ - $ - $ - $ - Covered payroll $ 32,157,208 $ 29,794,206 $ 24,574,829 $ 23,805,348 $ 21,795,380 $ 22,951,725 $ 23,736,588 $ 21,841,841 $ 20,499,668 $ 19,769,997 Contributions as percentage of covered payroll 34.28% 37.09% 66.67% 34.64% 35.37% 40.79% 28.20% 31.03% 30.97% 25.43%Actuarial Cost MethodAmortization MethodAmortization PeriodAsset Valuation MethodInflationSalary IncreasesPayroll GrowthDiscount RateRetirement AgeMortality For details, see June 30, 2021 CalPERS Funding Valuation ReportEntry Age Normal The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2023-24 contributions rates are as follows:

The probabilities of mortality are based on the 2021 CalPERS Experience Study.The probabilities of retirement are based on the 2021 CalPERS Experience Study.6.80% Net of Pension Plan Investment and Administrative Expenses; includes inflation2.800%Varies by Entry Age and Service2.30%For details, see June 30, 2021 CalPERS Funding Valuation Report 140

City of San Luis Obispo, California
Schedule of the City's Proportionate Share of the Net Pension Liability Safety Cost-Sharing Plan
As of June 30, 2024
Last 10 Years
Fiscal Year 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15Measurement Period 2022-2023 2021-2022 2020-2021 2019-2020 2018-2019 2017-18 2016-17 2015-16 2014-15 2013-14Proportion of the Collective Net Pension Liability 0.69198% 0.71733% 1.08299% 0.7225% 0.7212% 1.2261% 1.1943% 1.2510% 1.3654% 1.3754%Proportionate Share of the Collective Net Pension Liability $ 86,327,322 $ 82,856,965 $ 58,571,330 $ 78,611,581 $ 73,897,967 $ 71,940,534 $ 71,364,346 $ 64,792,760 $ 56,260,280 $ 51,592,420Covered payroll $ 11,235,984 $ 12,207,346 $ 10,744,808 $ 9,488,971 $ 11,197,562 $ 11,246,306 $ 10,614,437 $ 10,643,123 $ 10,849,863 $ 10,768,119Proportionate share of the net pension liability as percentage of covered payroll 768.31% 678.75% 545.11% 828.45% 659.95% 639.68% 672.33% 608.78% 518.53% 479.12%Plan fiduciary net position as a percentage of the total pension liability 76.21% 76.68% 88.29% 75.26% 75.26% 75.26% 73.31% 74.06% 78.40% 79.82%The CalPERS mortality assumptions were adjusted in fiscal year 2019.The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016, and then decreased from 7.65% to 7.15% in fiscal year 2018, and then decreased from 7.15% to 6.9% in fiscal year 2023. 141

Fiscal Year 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Contractually required contribution (actuarially determined) $ 10,004,005 $ 10,016,823 $ 12,756,585 $ 7,631,620 $ 7,167,638 $ 6,416,780 $ 5,910,345 $ 5,549,915 $ 5,074,217 $ 4,350,871Contribution in relation to the actuarially determined contributions (10,004,005) (10,016,823) (12,756,585) (7,631,620) (7,167,638) (8,348,780) (5,910,345) (6,299,915) (5,824,217) (4,650,871) Contribution deficiency (excess) -$ -$ -$ -$ -$ (1,932,000) $ -$ (750,000) $ $ (750,000) $ (300,000) Covered payroll $ 12,772,815 $ 11,235,984 $ 12,207,346 $ 10,744,808 $ 9,488,971 $ 11,197,562 $ 11,246,306 $ 10,614,437 $ 10,643,123 $ 10,849,863 Contributions as a percentage of covered payroll 78.32% 89.15% 104.50% 71.03% 75.54% 74.56% 52.55% 59.35% 54.72% 42.87%The Plan’s proportionate share of aggregate contributions may not match the actual contributions made by the employer during the measurement period. The Plan’s proportionate share of aggregate contributions is based on the Plan’s proportion of fiduciary net position as well as any additional side fund (or unfunded liability) contributions made by the employer during the measurement period.

City of San Luis Obispo, California
Schedule of the City's Pension Contributions
Safety Cost-Sharing Plan
As of June 30, 2024
Last 10 Years
142

Fiscal Year 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 Measurement Period 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 Total OPEB liability:

Service Cost 493,787 $ 480,571 $ $ 423,364 $ 415,244 $ 477,538 $ 463,629 $ 450,125 Interest on total OPEB liability 940,850 898,021 867,422 841,590 935,528 891,794 856,436 Difference between expected and
actual experience (2,105,353) - 349,893 - (2,085,962) - - Changes in assumptions (291,401) - 507,115 (203,416) 21,857 - - Benefit payments, including refunds
of employee contributions (717,143) (695,937) (678,789) (678,882) (677,824) (765,000) (827,500) Net change in total OPEB liability 682,655 (1,679,260) 1,469,005 374,536 (1,328,863) 590,423 479,061 Total OPEB liability - beginning 14,235,734 14,918,389 12,766,729 12,392,193 13,721,056 13,130,633 12,651,572 Total OPEB liability - ending (a) $ 14,918,389 13,239,129 $ 14,235,734 $ 12,766,729 $ 12,392,193 $ 13,721,056 $ 13,130,633 $ Plan fiduciary net position:

Contributions - employer 1,427,129 $ 1,309,367 $ 921,000 $ $ 1,656,882 $ 677,824 $ 1,221,000 $ 1,493,996 Net investment income 619,941 (1,395,486) 2,196,724 259,704 392,852 439,828 469,883 Benefit payments (717,143) (695,937) (678,789) (678,882) (677,824) (765,000) (827,500) Administrative expense (8,784) (7,070) (7,235) (3,472) (1,364) (10,170) (2,387) Net change in plan fiduciary
net position (789,126) 1,321,143 2,431,700 1,234,232 391,488 885,658 1,133,992 Plan fiduciary net position
- beginning 9,633,672 10,422,798 7,991,098 6,756,866 6,365,378 5,479,720 4,345,728 Plan fiduciary net position
- ending (b) $ 9,633,672 10,954,815 $ $ 7,991,098 10,422,798 $ $ 6,756,866 $ 6,365,378 $ 5,479,720 Plan net OPEB liability
- ending (a) - (b) $ 2,284,314 $ 5,284,717 $ 3,812,936 $ 4,775,631 $ 5,635,327 $ 7,355,678 $ 7,650,913 Plan fiduciary net position as a
percentage of the total OPEB liability 82.75% 64.58% 73.22% 62.59% 54.53% 46.39% 41.73% Covered-employee payroll $ 38,691,777 37,590,668 $ 40,691,438 $ 33,077,056 $ 33,429,600 $ 33,790,437 $ 33,722,592 $ Plan net OPEB liability as percentage
of covered payroll 6.08% 13.66% 9.37% 14.44% 16.86% 21.77% 22.69% Changes in assumptions. As of June 30, 2023 measurement, the assumption updated the PEMHCA minimum and medical trend. No changes in June 30, 2022 measurement date. As of June 30, 2021 measurement date, the assumption adds 1. Discount rate was updated based on newer capital market assumptions 2. Medical plan election at retirement assumption was updated 3. Inflation rate decreased from 2.75% to 2.50%, which decreased the discount rate, medical trend, and aggregate salary increases by 0.25% 4. Demographic assumptions updated to CalPERS 2000-2019 Experience Study 5. Mortality improvement scale was updated to Scale MP-2021. As of June 30, 2020 measurement date, the assumption removed the ACA excise tax. As of June 30, 2019 measurement date, the mortality improvement scale was updated to Scale MP-2019. Medical plan at retirement estimated using weighted premium of recent retirees; updated based on retirements during 2015-2019. * Fiscal year 2018 was the first year of implementation. Information is required only for measurement periods for which GASB 75 is applicable.

Benefit changes. The figures shown do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2022 measurement date.

Prepared for the City of San Luis Obispo OPEB Plan
an Agent Multiple-Employer Defined Benefit OPEB Plan
As of June 30, 2024
Last 10 Years *
Schedule of Changes in the Net OPEB Liability and Related Ratios 143

Fiscal Year 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 Actuarially determined
contribution $ 1,085,000 $ 1,055,000 $ 1,309,367 $ 921,000 $ 1,190,000 $ 1,154,000 $ 1,221,000 Contributions in
relation to the
actuarially determined
contributions (740,550) (1,427,129) (1,309,367) (921,000) (1,656,882) (677,824) (1,221,000) Contribution
deficiency (excess) $ 344,450 $ (372,129) $ - $ (466,882) - $ $ 476,176 $ - Covered-employee
payroll $ 37,590,668 43,414,242 $ 38,691,777 $ 40,691,438 $ 33,077,056 $ 33,429,600 $ 33,790,437 $ percentage of covered
payroll 1.71% 2.81% 3.38% 2.26% 3.60% 3.45% 3.61%
Contributions paid as of June 30, 2024 are deferred to June 30, 2025.

Valuation date
Actuarial Cost Method
Amortization Method
Amortization Period
Asset Valuation Method
Discount Rate
General Inflation
Medical Trend
Mortality
Mortality Improvement

6.25%

2.50%
Non-Medicare - 6.50% for 2023, decreasing to an ultimate rate of 3.75% in 2076 Medicare - 5.65% for 2023, decreasing to an ultimate rate of 3.75% in 2076 CalPERS 2000-2019 experience study
Post-retirement mortality projected fully generational with Scale MP-2021 June 30, 2021
Entry Age Normal, Level % of pay
Level % of pay

10.1-year average period for FY2023/24
Investment gains and losses spread over 5-year rolling period The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2023-24 are as follows:
* Fiscal year 2018 was the first year of implementation. Information is required only for measurement periods for which GASB 75 is applicable.

Prepared for the City of San Luis Obispo Miscellaneous Plan an Agent Multiple-Employer Defined Benefit OPEB Plan
As of June 30, 2024
Last 10 Years *
Schedule of Employer OPEB Contributions
144

City of San Luis Obispo, California
Notes to Required Supplementary Information
June 30, 2024
Budgetary Comparison Schedule

1. The budget is prepared using the modified accrual basis of accounting consistent with U.S. generally accepted accounting principles.

2. Outstanding encumbrances from the prior fiscal year are not reflected in the original budget column but are included in the final budget amounts.

3. All the City’s general government and engineering programs are initially accounted and budgeted for in the General Fund.

However, certain of these support service programs also benefit the City’s enterprise and agency fund operations, and accordingly, transfers are made from these funds to reimburse the General Fund for these services. The transfers are based on a Cost Allocation Plan prepared for this purpose which distributes the shared costs in a uniform, consistent manner in accordance with U.S. generally accepted accounting principles.

Excess of Expenditures Over Appropriations

1. At June 30, 2024 expenditures exceeded appropriations in the General Fund as noted below.

Department/Division Budget Variance
Police Protection:

Investigations $ 35,387
Patrol services 437,416
Fire and environmental safety:

Emergency response 179,197
Fire Apparatus Services 16,952
Training 12,456
Culture and Recreation:

Aquatics/Sinsheimer park facilities 41,659
Special events 333
General Administration:

Public works administration 66,249
Capital Outlay:

General government 250,801
145

146

OTHER SUPPLEMENTARY INFORMATION

AND COMBINING AND INDIVIDUAL FUND

STATEMENTS AND SCHEDULES
147

148

Revenues Actual
Local Transaction and Use Tax $ 30,596,293
$ 30,596,293
Expenditure Allocations by Priority
Address Homelessness $ 796,897
Community Safety and Emergency Preparedness 6,852,418
Creek and Flood Protection 3,893,150
Economic Development and Business Retention 425,000
Open Space/Natural Areas Preservation and Maintenance 1,587,865 Other Services and Projects 5,535,379
Protect Financial Stability 515,519
Safe and Clean Public Areas 765,767
Street Maintenance and Transportation (incl bike and ped improvements) 12,137,815 Youth/Senior Services and Recreation Facilities 1,617,644 $ 34,127,454
Net Change in Fund Balance $ (3,531,160)
Fund Balance Beginning of Year 5,307,988
Fund Balance End of Year $ 1,776,828
City of San Luis Obispo
Local Transaction Tax Measure Funding Schedule
For the Fiscal Year Ended June 30, 2024
149

Revenues Budget Actual
Local Transaction and Use Tax $ 30,596,293 $ 30,596,293 $ 30,596,293 $ 30,596,293
Expenditures
Transfer Out for Operating Programs:

Address Homelessness $ 796,897 $ 796,897
Community Safety and Emergency Preparedness 2,491,203 2,491,203 Creek and Flood Protection 638,150 638,150
Economic Development and Business Retention 150,000 150,000 Open Space/Natural Areas Preservation and Maint. 622,865 622,865 Other Services and Projects 141,500 141,500
Protect Financial Stability 515,519 515,519
Safe and Clean Public Areas 395,682 395,682
Street Maintenance and Transportation 672,348 672,348
Youth/Senior Services and Recreation Facilities 565,882 565,882 $ 6,990,046 $ 6,990,046
Transfer Out for 2023-24 Capital Projects
Community Safety and Emergency Preparedness $ 4,361,215 $ 4,361,215 Creek and Flood Protection 3,255,000 3,255,000
Economic Development and Business Retention 275,000 275,000 Open Space/Natural Areas Preservation and Maintenance 965,000 965,000 Other Services and Projects 5,393,879 5,393,879
Safe and Clean Public Areas 370,085 370,085
Street Maintenance and Transportation (incl bike and ped improvements) 11,465,467 11,465,467 Youth/Senior Services and Recreation Facilities 1,051,762 1,051,762 $ 27,137,408 $ 27,137,408
Net Change in Fund Balance $ (3,531,160)
Fund Balance Beginning of Year $ 5,307,988
Fund Balance End of Year $ 1,776,828
City of San Luis Obispo
Local Transaction Tax Measure Funding Schedule
For the Fiscal Year Ended June 30, 2024
150

Capital Programs: Budget* Actual Encumbrances Carryover Community Safety and Emergency Preparedness
Fleet Replacement - Fire 677,983 128,855 15,040 534,087 Fire Station #2 - Parking Lot Maintenance 50,000 - - 50,000 Fire Hydrant Replacement 54,756 54,756 - -
Fire Station #3 & #4 Remodel Space Study and Design 300,000 35,261 43,943 220,796 Public Safety Center - Police Station Replacement 30,247 - - 30,247 Major Facility Replacement - Police 276,142 151,953 124,189 - IT Replacements 53,457 43,472 4,413 5,572
Major Facility Maintenance 371,701 371,269 432 -
Police - Information Technology 1,197,714 274,374 10,740 912,599 Fleet Replacement - Public Works 100,000 3,882 4,687 91,431 Fleet Replacement - Police 477,671 214,565 247,165 15,941 Righetti Hillside Slide Repair 1,860,000 75,255 65,777 1,718,969 Storm Response & Recovery 3,590,828 2,290,056 1,300,772 - $ 3,643,699 9,040,498 $ 516,386 $ 4,880,413
Creek and Flood Protection
Creek Bank Stabilization Near Pismo and Johnson 1,873,029 1,659,502 68,647 144,881 Fleet Replacement - Public Works 630,000 626,011 - 3,989 Johnson - Iris to Bishop Pipeline Replacement 165,000 97,018 1,502 66,480 Ruth and Iris Culvert Replacement 321,656 290,830 - 30,826 Storm Drainage Infrastructure Replacement 1,282,596 125,768 7,580 1,149,249 $ 4,272,281 $ 2,799,128 $ 77,729 1,149,249
Economic Development and Business Retention
Additional Banner Arms, Bench Arm Rests, Signs 110,524 20,967 10,936 78,622 Annual Public Art Maintenance and Projects 202,657 155,863 5,079 41,714 Open SLO 71,189 11,112 60,078 -
Downtown Zig-Zag Lighting 250,000 27,000 37,474 185,526 Downtown Renewal 255 - - 255
Mission Plaza Maintenance Improvements 10,670 665 7,336 2,669 Public Art Installation 417,704 32,863 29,889 354,952
$ 1,062,999 $ 248,470 $ 90,713 368,864
Open Space/Natural Areas Preservation and Maintenance
Open Space Acquisition 647,876 104,885 20,059 522,932
Open Space Maintenance 302,831 169,560 133,271 -
Pismo Street Retaining Wall 200,000 21,806 168,899 9,295 Urban Forest Maintenance 460,885 455,353 - 5,533
Laguna Lake Dog Park 279,393 23,164 256,229 -
Laguna Lake Dredging 8,146 6,731 - 1,416
$ 1,899,131 $ 781,498 $ 188,959 928,674
City of San Luis Obispo
Local Transaction Tax Measure Funding Schedule, continued Local Revenue Measure Funded Projects
Includes Legacy Projects and projects funded by Capital Reserve 151

Capital Programs: Budget* Actual Encumbrances Carryover Other Services and Projects
CIP Project Delivery Augmentation 6,434 6,434 - -
Electric Vehicle Charging Stations 362,535 - 30,053 332,482 Major Facility Maintenance 953,384 236,935 126,445 590,005 Righetti Park Investment 304,637 - - 304,637
KVEC Tower 171,750 - - 171,750
Fleet Replacement - Citywide 233,023 1,000 117,401 114,622 Fleet Replacement - Public Works 719,444 290,614 - 428,829 Corp Yard Fuel Island Siding - - - -
$ 534,982 2,751,206 $ 273,899 $ 1,942,324
Safe and Clean Public Areas
IT Replacement 84,415 - - 84,415
Bob Jones Trail and Railroad Safety Trail Solar Lightning 50,400 1,449,941 1,160 1,398,381 Curb Ramps and Sidewalks Replacements 304,947 227,513 36,947 40,487 Mission Plaza Concept Plan Implementation 2,230,965 135,900 541,827 1,553,238 Park Major Maintenance & Repairs: Mission Plaza Railin 35,000 - - 35,000 Street and Pathway Lighting 131,425 13,091 - 118,334
Pedestrian Crossing Improvements 34,847 - 32,509 2,338
Railroad Safety Trail Taft to Pepper 27,150 - - 27,150
Pedestrian Crosswalk Beacon on Ramona 13,255 - 13,255 - Area 6 & 7 Curb Ramps 2,610 - 2,610 -
$ 426,904 4,314,554 $ 628,308 $ 3,174,928
Street Maintenance and Transportation
Active Transportation Plan Implementation 42,371 33,510 5,117 3,743 ATP - Higuera Complete Street Project 1,137,019 355,771 22,555 758,693 ATP - Foothill Boulevard Complete Street Project 200,000 44,915 52,975 102,110 ATP - Orcutt Road Railroad Crossing Upgrades 200,000 - - 200,000 Neighborhood Traffic Improvements 286,709 196,368 50,151 40,191 Prado Road Bridge & Road Widening 145,602 43,101 1 102,500 Prado Road Interchange 2,344,583 13,854 15,261 2,315,468 Traffic Safety Report Improvements 30,000 19,861 - 10,139 Traffic Signs & Striping Maintenance 75,332 6,811 - 68,521 Transportation Safety & Operations 143,431 9,373 65,053 69,006 North Chorro Neighborhood Greenway - Phase 2 3,707,388 3,090,133 227,180 390,074 Development Agreements 1,344,255 498,394 845,862 -
Orcutt/Tank Farm Roundabout Construction 45,770 20,432 15,270 10,068 Monterey at Santa Rosa Paving and Signal Project 256,610 256,610 - - Roadway Sealing 2022 231,150 177,338 25,799 28,013
2022 Street Reconstruction and Resurfacing 588,071 118,286 163,898 305,887 Marsh and Santa Rosa Bridge Replacement 61 - 61 -
Mid-Higuera Bypass 1,158,462 581,682 188 576,592
Sewer Replacement Chorro & Murray 80,000 - 80,000 -
South Street Median Landscaping 5,312 650 3,810 852
2023 Streets Reconstruction & Resurfacing - Arterials 8,501,400 7,430,516 381,210 689,674 Roadway Sealing 2024 130,775 - 130,775 -
Sacramento Drive Paving 220,000 - 220,000 -
California Taft Roundabout 647,639 141,719 45,538 460,383 $ 21,521,941 $ 13,039,325 $ 1,919,929 6,562,688
City of San Luis Obispo
Local Transaction Tax Measure Funding Schedule, continued Local Revenue Measure Funded Projects
Includes Legacy Projects and projects funded by Capital Reserve 152

Capital Programs: Budget* Actual Encumbrances Carryover Youth/Senior Services and Recreation Facilities
Laguna Lake Golf Course Maintenance 51,570 2,945 - 48,625 Major Facility Maintenance 335,000 178,552 24,335 132,113 Playground Equipment Replacement 252,891 61,883 44,161 146,846 Orcutt Area - Linear Park Planning and Construction 787,132 - 7,802 779,329 Parking Lot Maintenance 465,553 21,834 - 443,719
Fleet Replacement - Parks and Recreation 171,617 115,246 11,434 44,938 Parks and Recreation Master Plan Implementation 43,729 43,729 - - Parks Major Maintenance 1,487,668 716,129 85,237 686,303 Golf Course Pro Shop Flood Damage Repairs 50,181 13,123 - 37,058 North Broad Street Neighborhood Park 359,604 162,558 31,845 165,201 $ 1,315,998 4,004,944 204,814 $ 2,484,133
Total Capital Expenditures $ 22,790,005 48,867,556 $ 3,900,737 $ 21,491,272 *This Budget amount also includes carryover from prior years.

City of San Luis Obispo
Local Transaction Tax Measure Funding Schedule, continued Local Revenue Measure Funded Projects
Includes Legacy Projects and projects funded by Capital Reserve 153

154

City of San Luis Obispo, California
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
The City maintains the following nonmajor governmental funds:

Special Revenue Funds
The City has established the following ten special revenue funds in order to account for the proceeds from revenue sources that are restricted or committed to expenditures for specified purposes. Budgets are prepared using the modified accrual basis of accounting consistent with U.S. generally accepted accounting principles.

Downtown Business Improvement District (BID) Fund . This fund has been established to account for the receipt of a surcharge derived from a supplemental assessment upon businesses within the Downtown Business Improvement District’s boundaries. Pursuant to the provisions of the Municipal Code, this surcharge is equal to $150.00 per year. Expenditures from the fund are limited to four basic purposes: decorating public places within the downtown; promoting public events in the downtown core; promoting trade activities; and improving parking in the Transportation Development Act (TDA) Fund . The State of California has designated 1/4% of the sales tax levied statewide for local transportation purposes. Funding for this program was provided during the 1971 legislative session with the enactment of the Transportation Development Act, which extended the State sales tax to include purchases of gasoline. Revenues allocated to the City of San Luis Obispo under this program are divided into two categories: Article 3 funds, which are restricted for the improvement and maintenance of street systems including pedestrian and bicycle facilities; and Article 4 funds, which are restricted for public transit systems and are recorded directly in the Transit Fund. Under the City's Financial Plan policies, all TDA Article 3 revenues are allocated for alternative transportation purposes. The purpose of this fund is to account for these revenues.

Tourism Business Improvement District (BID) Fund . This fund has been established to account for the receipt of a surcharge derived from assessments upon the lodging establishments within the City. The surcharge is equal to 2% of gross room rents. Expenditures from the fund are limited to the marketing and promotion of tourism.

Gas Tax Fund . Portions of the tax rate per gallon levied by the State of California on all gasoline purchases are allocated to cities throughout the State on a population basis. These funds are restricted for expenditures by the State of California for street-related purposes only. Under the City's Financial Plan policies, all gas tax revenues are transferred to the General Fund for street maintenance purposes.

Community Development Block Grant (CDBG) Fund. This fund has been established to account for federal funds received by the City specifically to benefit low and moderate income persons, aid in the elimination of blight, and meet other community development needs as allowed by block grant regulations.

Law Enforcement Grants Fund . This fund has been established to account for public safety grant funds.

Public Arts Contribution Fund. Public contributions to the public art program are accounted for in this fund along with the expenditures for public art projects funded by this revenue source.

Avila Ranch Fund. This fund has been established to account for the ongoing funding received as a special property tax assessment and the associated infrastructure and service improvements of the Avila Ranch Community Facilities District.

SB1 Road Repair Fund. This fund has been established to account for stable and ongoing funding for maintenance and improvements to transportation infrastructure as provided through Senate Bill 1 (2017), the Road Repair and Accountability Act.
155

City of San Luis Obispo, California
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
SB1186 CASP Certify Fund . This fund has been established as Senate Bill 1186 (2012) requires local agencies to collect an additional fee when issuing a permit for the purpose of increasing certified access specialist (CASp) services and compliance with construction-related accessibility requirements. The first priority is to spend the funds on the training and retention of CASps in order to meet the needs of the public in the jurisdiction. The funds may also be spent on activities or programs that facilitate accessibility compliance.

Affordable Housing BEGIN Loan Fund. This fund has been established to account for affordable housing loans that were provided under the State's BEGIN program.

Avila Ranch DPA Fund. This fund has been established to account for the home buyer down payment assistance program required by the Avila Ranch development.

Capital Projects Funds
The following eleven capital project funds are used by the City to account for the financial resources used in the construction or acquisition of major capital facilities or equipment (with the exception of those financed primarily through proprietary funds). Budgets are prepared using the modified accrual basis of accounting consistent with U.S. generally accepted accounting principles on a multi-year project basis. Accordingly, budgetary comparisons for the capital projects funds are not presented in the accompanying other supplementary information.

Parkland Development Fund - Quimby . This fund was established to account for parkland in-lieu fees in accordance with the AB 1191 Act, also known as the Quimby Act; it authorizes the City to require residential subdivisions to dedicate land for parks or pay fees in lieu of dedication. Impact fees may be collected to pay for park land (for projects not involving a subdivision), park improvements, community centers, recreation facilities, trails, open space, etc.

Open Space Protection Fund . This fund was established to account for projects funded as part of the City’s open space protection program to enhance open space and agricultural conservation on lands within and surrounding the City, improve passive recreational and nature study opportunities, and restore and enhance wildlife habitat. Projects in this fund will be financed with General Fund contributions, outside contributions, and State and Federal grants.

Airport Area Impact Fee Fund. This fund was established to account for interim annexation fees collected for the specific plan and related infrastructure master plans for annexing the airport area to the City.

Los Osos Valley Road (LOVR) Sub-Area Fee Fund . This fund was established to account for the LOVR add-on impact fee created for the expansion of capacity for the LOVR interchange at US 101 for construction, project management, and inspection. Though the project has been completed, the City has an existing reimbursement agreement with Costco Wholesale Corporation for improvements already constructed at the LOVR interchange.

Fleet Replacement Fund . This fund was established to account for the financing and replacement of vehicles for all General Fund programs of the City. Financing is primarily provided through operating transfers from the General Fund as well as from interest earnings and sales of surplus property.

Information Technology Replacement Fund . This fund was established in FY 12-13 to account for the financing and replacement of information technology for all General Fund programs of the City. Financing is primarily provided through operating transfers from the General Fund as well as from interest earnings. 156

City of San Luis Obispo, California
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
Major Facility Replacement Fund. This fund accounts for the financing and replacement of major facilities for all General Fund programs of the City. Financing is primarily provided through operating transfers from the General Fund as well as from interest earnings.

Affordable Housing Program Fund . This fund accumulates revenues from inclusionary housing fees for capital projects related to affordable housing programs and projects.

Transportation Impact Fee Fund. This fund was established to account for construction projects related to transportation facilities and travel lanes within the City that will be financed primarily with transportation impact f
Infrastructure Fund . This fund was established to provide financing to infrastructure projects that have a wide community benefit. Financing is primarily provided through operating transfers from the General Fund.

Parkland Development Impact Fee – Citywide Fund . This fund was created to account for impact fees that were established for the purpose of acquisition and improvement of community parks and existing park facilities intended for access and use by the entire city.

OASP Park Development Fund . This fund was established to account for impact fees created for the purpose of acquisition and improvement of community parks and existing park facilities intended for access and use by the entire city but more specifically by the Orcutt Area residents as the location of this park projects are in the Orcutt MASP Park Development Fund . This fund was established to account for impact fees created for the purpose of acquisition and improvement of community parks and existing park facilities intended for access and use by the entire city but more specifically by the Margarita Area residents as the location of this park projects are in the Margarita Area.

OASP Transportation Impact Fee Fund . This fund was established to account for construction projects that will be financed primarily with transportation impact fees within the Orcutt Area Specific Plan in accordance with its Development Agreement.

Fire Impact Fee Fund . This fund was established to account for fire department related construction projects that will be financed primarily with public safety development impact fees.

Police Impact Fee Fund . This fund was established to account for police department related construction projects that will be financed primarily with public safety development impact fees.

Park Improvement Impact Fee – Citywide Fund . This fund was established to account for construction projects related to park improvements that will be financed primarily with park in-lieu fees.

SLR Transportation Impact Fee . This fund was established to account for construction projects that will be financed primarily with transportation impact fees within the San Luis Ranch development, in accordance with its Development Agreement.

Public Safety Equipment Replacement Fund. This fund accounts for the financing and replacement of public safety equipment. Financing is primarily provided through operating transfers from the General Fund as well as from interest earnings.
157

City of San Luis Obispo, California
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
Debt Service Fund
The City has established one debt service fund to account for the payment and accumulation of resources related to governmental activities long-term debt principal and interest for the following debt issues. Budgets are prepared using the modified accrual basis of accounting consistent with U.S. generally accepted accounting principles. The following governmental activity debt issuances are serviced by this fund.

Capital Improvement Board 2012 Refunding Lease Revenue Bonds. In May 2012 the Board issued $5,050,000 of 2012 Lease Revenue Refunding Bonds. These bonds were issued to refinance the outstanding 2001 Lease Revenue Bonds, Series C, which will be redeemed on December 1, 2029. The 2001 bonds were used to purchase property and build athletic fields; purchase property for police station expansion; purchase Downtown Plan properties.

The Board has entered into a lease agreement with the City under which the City is responsible for making lease payments to fund the annual debt service requirements.

Public Financing Authority 2014 Lease Revenue Bonds. In 2014 the Authority issued $7,580,000 of 2014 Lease Revenue Bonds. These bonds were issued to finance the expansion of the Los Osos Valley Road interchange at U.S. 101. Debt service related to the interchange is recorded in the Debt Service Fund.

The Authority has entered into a lease agreement with the City under which the City is responsible for making lease payments to fund the annual debt service requirements.

Public Financing Authority 2018 Lease Revenue Bonds. In 2018 the Authority issued $11,072,775 of 2018 Lease Revenue Refunding Bonds. These bonds were issued to refinance the outstanding 2005 Revenue Bonds, 2006 Lease Revenue Bonds, and 2009 Lease Revenue Bonds. The original bonds were used to accomplish several high priority capital improvement projects including the headquarters fire station, seismic safety and HVAC improvements to City Hall, Mission Plaza expansion, and various properties and street lighting system purchases. Further, the bonds were used to purchase a parking structure and office building and to the finance the construction of the Public Safety Communications and Emergency Operations Center project.

The Authority has entered into a lease agreement with the City under which the City is responsible for making lease payments to fund the annual debt service requirements.
158

159

City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
Downtown BID
Transportation
Development
Act (TDA) Tourism BID Gas Tax
Assets
Cash and investment $ 179,548 $ 33,132 $ 1,443,947 $ -
Accounts receivable - - 279,376 -
Tax receivable - - - -
Accrued interest receivable - - 6,051 -
Cash held by fiscal agent - - - -
Loans receivable - - - -
Total assets $ 179,548 $ 33,132 $ 1,729,374 $ -
Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:

Accounts payable 131,953 $ - $ 185,073 $ - $
Accrued liabilities - - 6,061 -
Due to other funds - - - -
Unearned revenue 181,157 - 14,584 -
Total liabilities 313,110 - 205,718 -
Deferred Inflows of Resources:

Unavailable revenue - - - -
Fund balance:

Restricted for:

Public safety programs - - - -
Transportation projects - 33,132 - -
Affordable housing programs - - - -
Parkland development programs - - - -
Public art programs - - - -
Tourism programs - - 1,523,656 -
Infrastructure improvement - - - -
Committed to:

Public safety program - - - -
Assigned to:

Contingency fund - - - -
Subsequent years expenditures - - - -
Unassigned (133,562) - - -
Total fund balance (133,562) 33,132 1,523,656 -
Total liabilities, deferred inflows of
resources, and fund balance $ 33,132 179,548 $ 1,729,374 $ $ - (Continued)
June 30, 2024
Special Revenue Funds
160

City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2024
Community
Development Block
Grant (CDBG)
Law Enforcement
Grants
Public Art
Contributions Avila Ranch CFD
Assets
Cash and investment $ 102,233 $ 49,753 $ 1,525,935 $ 371,388 Accounts receivable 31,885 1,208 - 3,580
Tax receivable - - - -
Accrued interest receivable 755,113 188 6,839 1,674
Cash held by fiscal agent - - - -
Loans receivable 1,112,944 - - -
Total assets $ 2,002,175 $ 51,149 $ 1,532,774 $ 376,642 Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:

Accounts payable - $ - $ 6,186 $ 8,610 $
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - 386 - -
Total liabilities - 386 6,186 8,610
Deferred Inflows of Resources:

Unavailable revenue 755,113 - - -
Fund balance:

Restricted for:

Public safety programs - 50,763 - -
Transportation projects - - - -
Affordable housing programs 1,247,062 - - -
Parkland development programs - - - -
Public art programs - - 1,526,588 -
Tourism programs - - - -
Infrastructure improvement - - - 368,032
Committed to:

Public safety program - - - -
Assigned to:

Contingency fund - - - -
Subsequent years expenditures - - - -
Unassigned - - - -
Total fund balance 1,247,062 50,763 1,526,588 368,032
Total liabilities, deferred inflows of
resources, and fund balance $ 51,149 2,002,175 $ 1,532,774 $ $ 376,642 (Continued)
Special Revenue Funds
161

City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2024
SB1 Road Repair
SB1186 CASP
Certify
Affordable
Housing BEGIN
Loan Fund
Avila Ranch DPA
Fund
Assets
Cash and investment $ 106,336 $ 175,664 $ 7,057 $ -
Accounts receivable - - - -
Tax receivable 214,923 - - -
Accrued interest receivable 572 819 87,050 -
Cash held by fiscal agent - - - -
Loans receivable - - 420,335 -
Total assets $ 321,831 $ 176,483 $ 514,442 $ -
Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:

Accounts payable 38,745 $ - $ - $ - $
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - - - -
Total liabilities 38,745 - - -
Deferred Inflows of Resources:

Unavailable revenue - - 87,017 -
Fund balance:

Restricted for:

Public safety programs - - - -
Transportation projects 283,086 176,483 - -
Affordable housing programs - - 427,425 -
Parkland development programs - - - -
Public art programs - - - -
Tourism programs - - - -
Infrastructure improvement - - - -
Committed to:

Public safety program - - - -
Assigned to:

Contingency fund - - - -
Subsequent years expenditures - - - -
Unassigned - - - -
Total fund balance 283,086 176,483 427,425 -
Total liabilities, deferred inflows of
resources, and fund balance $ 176,483 321,831 $ 514,442 $ $ - (Continued)
Special Revenue Funds
162

City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2024
Parkland
In-Lieu Fee
Open Space
Protection
Airport Area
Impact Fee
LOVR Sub-Area
Fee
Assets
Cash and investment $ 2,693,307 $ 13,634 $ 464,136 $ 614,213 Accounts receivable - - - -
Tax receivable - - - -
Accrued interest receivable 30,181 64 2,571 2,574
Cash held by fiscal agent - - - -
Loans receivable 227,589 - - -
Total assets $ 2,951,077 $ 13,698 $ 466,707 $ 616,787
Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:

Accounts payable 465,264 $ - $ 75,114 $ - $
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - - - -
Total liabilities 465,264 - 75,114 -
Deferred Inflows of Resources:

Unavailable revenue 244,216 - - -
Fund balance:

Restricted for:

Public safety programs - - - -
Transportation projects - - 391,593 616,787
Affordable housing programs - - - -
Parkland development programs 2,241,597 - - -
Public art programs - - - -
Tourism programs - - - -
Infrastructure improvement - - - -
Committed to:

Public safety program - - - -
Assigned to:

Contingency fund - - - -
Subsequent years expenditures - 13,698 - -
Unassigned - - - -
Total fund balance 2,241,597 13,698 391,593 616,787
Total liabilities, deferred inflows of
resources, and fund balance $ 13,698 2,951,077 $ 466,707 $ $ 616,787 (Continued)
Capital Projects Funds
163

City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2024
Fleet Replacement
Info Tech
Replacement
Affordable
Housing
Transportation
Impact Fee
Assets
Cash and investment $ 2,652,035 $ 3,555,900 $ 28,310 $ 6,074,273 Accounts receivable - - 18,722 -
Tax receivable - - - -
Accrued interest receivable - - 2,593,322 194,865
Cash held by fiscal agent - - - -
Loans receivable - - 8,560,688 1,401,928
Total assets $ 2,652,035 $ 3,555,900 $ 11,201,042 $ 7,671,066 Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:

Accounts payable 68,641 $ 10,611 $ - $ 5,543 $
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - 562,650 - -
Total liabilities 68,641 573,261 - 5,543
Deferred Inflows of Resources:

Unavailable revenue - - 2,660,312 1,565,360
Fund balance:

Restricted for:

Public safety programs - - - -
Transportation projects - - - 6,100,163
Affordable housing programs - - 8,540,730 -
Parkland development programs - - - -
Public art programs - - - -
Tourism programs - - - -
Infrastructure improvement - - - -
Committed to:

Public safety program - - - -
Assigned to:

Contingency fund 500,000 400,000 - -
Subsequent years expenditures 2,083,394 2,582,639 - -
Unassigned - - - -
Total fund balance 2,583,394 2,982,639 8,540,730 6,100,163 Total liabilities, deferred inflows of
resources, and fund balance $ 3,555,900 2,652,035 $ 11,201,042 $ $ 7,671,066 (Continued)
Capital Projects Funds
164

City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2024
Infrastructure
Parkland
Development
Impact FeeCitywide OASP Park MASP Park
Assets
Cash and investment $ 13,320,489 $ 1,241,109 $ 2,251,994 $ 3,277,271 Accounts receivable - - - -
Tax receivable - - - -
Accrued interest receivable - 89,344 10,463 15,289
Cash held by fiscal agent - - - -
Loans receivable - 446,826 - -
Total assets $ 13,320,489 $ 1,777,279 $ 2,262,457 $ 3,292,560 Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:

Accounts payable - $ - $ 146,443 $ - $
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue 105,106 - - -
Total liabilities 105,106 - 146,443 -
Deferred Inflows of Resources:

Unavailable revenue - 530,519 - -
Fund balance:

Restricted for:

Public safety programs - - - -
Transportation projects - - - -
Affordable housing programs - - - -
Parkland development programs - 1,246,760 2,116,014 3,292,560 Public art programs - - - -
Tourism programs - - - -
Infrastructure improvement - - - -
Committed to:

Public safety program - - - -
Assigned to:

Contingency fund - - - -
Subsequent years expenditures 13,215,383 - - -
Unassigned - - - -
Total fund balance 13,215,383 1,246,760 2,116,014 3,292,560 Total liabilities, deferred inflows of
resources, and fund balance $ 1,777,279 13,320,489 $ 2,262,457 $ $ 3,292,560 (Continued)
Capital Projects Funds
165

City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2024
OASP
Transportation
Impact Fee Fire Impact Fee Police Impact Fee
Park Improvement
Impact FeeCitywide
Assets
Cash and investment $ 1,466,404 $ 396,772 $ 446,404 $ 2,155,209 Accounts receivable - - - 60,756
Tax receivable - - - -
Accrued interest receivable 6,841 13,797 8,315 19,857
Cash held by fiscal agent - - - -
Loans receivable - 102,569 85,280 203,154
Total assets $ 1,473,245 $ 513,138 $ 539,999 $ 2,438,976 Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:

Accounts payable - $ - $ - $ 49,277 $
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - - - -
Total liabilities - - - 49,277
Deferred Inflows of Resources:

Unavailable revenue - 114,574 91,580 213,114
Fund balance:

Restricted for:

Public safety programs - 398,564 448,419 -
Transportation projects 1,473,245 - - -
Affordable housing programs - - - -
Parkland development programs - - - 2,176,585
Public art programs - - - -
Tourism programs - - - -
Infrastructure improvement - - - -
Committed to:

Public safety program - - - -
Assigned to:

Contingency fund - - - -
Subsequent years expenditures - - - -
Unassigned - - - -
Total fund balance 1,473,245 398,564 448,419 2,176,585
Total liabilities, deferred inflows of
resources, and fund balance $ 513,138 1,473,245 $ 539,999 $ $ 2,438,976 (Continued)
Capital Projects Funds
166

City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2024
SLR
Transportation
Impact Fee
Public Safety
Equipment
Replacement Fund Debt Service
Total Nonmajor
Governmental
Funds
Assets
Cash and investment $ 2,148,160 $ 429,315 $ 47,223,928 - $ Accounts receivable - - - 395,527
Tax receivable - - - 214,923
Accrued interest receivable 9,663 - - 3,855,452
Cash held by fiscal agent - - 8,888 8,888
Loans receivable - - 12,561,313 -
Total assets $ 2,157,823 $ 429,315 $ 8,888 $ 64,260,031 Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:

Accounts payable - $ 344 $ 844 $ 1,192,648 $
Accrued liabilities - - - 6,061
Due to other funds - - 166,601 166,601
Unearned revenue - - - 863,883
Total liabilities - 344 167,445 2,229,193
Deferred Inflows of Resources:

Unavailable revenue - - - 6,261,805
Fund balance:

Restricted for:

Public safety programs - - - 897,746
Transportation projects 2,157,823 - - 11,232,312
Affordable housing programs - - - 10,215,217
Parkland development programs - - - 11,073,516
Public art programs - - - 1,526,588
Tourism programs - - - 1,523,656
Infrastructure improvement - - - 368,032
Committed to:

Public safety program - 428,971 - 428,971
Assigned to:

Contingency fund - - - 900,000
Subsequent years expenditures - - - 17,895,114
Unassigned - - (158,557) (292,119)
Total fund balance 2,157,823 428,971 (158,557) 55,769,033 Total liabilities, deferred inflows of
resources, and fund balance $ 429,315 2,157,823 $ 8,888 $ $ 64,260,031 Capital Projects Funds
167

City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
Downtown BID
Transportation
Development Act
(TDA) Tourism BID Gas Tax
Revenues:

Use of money and property $ - $ - $ 56,643 $ -
Subventions and grants - 69,451 - 1,341,857
Charges for services 264,757 - 2,210,660 -
Property tax - - - -
Other revenues 497 - - -
Total revenues 265,254 69,451 2,267,303 1,341,857
Expenditures:

Current:

General Government - - - -
Public safety - - - -
Transportation - - - -
Community development 396,392 - 2,126,661 -
Debt service:

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

General Government - - - -
Public safety - - - -
Transportation - - - -
Leisure, cultural and social services - - - -
Community development - - - -
Total expenditures 396,392 - 2,126,661 -
Excess (deficiency) of revenues over
(under) expenditures (131,138) 69,451 140,642 1,341,857 Other financing sources (uses):

Transfers in - - - -
Transfers out - (45,000) (43,611) (1,341,857)
Total other financing
sources (uses) - (45,000) (43,611) (1,341,857)
Net change in fund balance (131,138) 24,451 97,031 -
Fund balance, beginning of year (2,424) 8,681 1,426,625 - Prior year restatements
Fund balance (deficit),
beginning of year, as restated (2,424) 8,681 1,426,625 - Fund balance (deficit),
end of year $ (133,562) $ 33,132 $ 1,523,656 $ -
(Continued)
Special Revenue Funds
168

City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
Community
Development Block
Grant (CDBG)
Law Enforcement
Grants
Public Art
Contributions Avila Ranch CFD
Revenues:

Use of money and property - $ 2,142 $ 63,178 $ 10,696 $ Subventions and grants 417,367 66,958 - -
Charges for services - 533 49,763 -
Property tax - - - 258,289
Other revenues - - - -
Total revenues 417,367 69,633 112,941 268,985
Expenditures:

Current:

General Government - - - -
Public safety - 87,326 - -
Transportation - - - -
Community development - - - 41,673
Debt service:

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

General Government - - - -
Public safety - - - -
Transportation - - - -
Leisure, cultural and social services - - 190,647 -
Community development - - - -
Total expenditures - 87,326 190,647 41,673
Excess (deficiency) of revenues over
(under) expenditures 417,367 (17,693) (77,706) 227,312
Other financing sources (uses):

Transfers in - - 425,000 -
Transfers out (426,419) - (90,550) (17,085)
Total other financing
sources (uses) (426,419) - 334,450 (17,085)
Net change in fund balance (9,052) (17,693) 256,744 210,227 Fund balance, beginning of year 143,170 68,456 1,269,844 157,805 Prior year restatements 1,112,944
Fund balance (deficit),
beginning of year, as restated 1,256,114 68,456 1,269,844 157,805 Fund balance (deficit),
end of year $ 1,247,062 $ 50,763 $ 1,526,588 $ 368,032
(Continued)
Special Revenue Funds
169

City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
SB1 Road Repair
SB1186 ASP
Certify
Affordable
Housing BEGIN
Loan Fund
Avila Ranch DPA
Fund
Revenues:

Use of money and property $ 5,556 $ 7,821 $ 451 $ -
Subventions and grants 1,233,220 - - -
Charges for services - 28,796 - -
Property tax - - - -
Other revenues - - - 100,000
Total revenues 1,238,776 36,617 451 100,000
Expenditures:

Current:

General Government - - - -
Public safety - - - -
Transportation - - - -
Community development - 2,106 177,975 100,000
Debt service:

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

General Government - - - -
Public safety - - - -
Transportation 1,271,758 - - -
Leisure, cultural and social services - - - -
Community development - - - -
Total expenditures 1,271,758 2,106 177,975 100,000
Excess (deficiency) of revenues over
(under) expenditures (32,982) 34,511 (177,524) -
Other financing sources (uses):

Transfers in - - - -
Transfers out - - - -
Total other financing
sources (uses) - - - -
Net change in fund balance (32,982) 34,511 (177,524) -
Fund balance, beginning of year 316,068 141,972 604,949 - Prior year restatements
Fund balance (deficit),
beginning of year, as restated 316,068 141,972 604,949 - Fund balance (deficit),
end of year $ 283,086 $ 176,483 $ 427,425 $ -
(Continued)
Special Revenue Funds
170

City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
Parkland
In-Lieu Fee
Open Space
Protection
Airport Area
Impact Fee
LOVR Sub-Area
Fee
Revenues:

Use of money and property 142,964 $ 601 $ 27,958 $ 21,181 $ Subventions and grants - - - -
Charges for services 128,485 - - 201,772
Property tax - - - -
Other revenues - - - -
Total revenues 271,449 601 27,958 222,953
Expenditures:

Current:

General Government - - - -
Public safety - - - -
Transportation - - - 22,886
Community development - - - -
Debt service:

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

General Government - - - -
Public safety - - - -
Transportation - - 300,600 -
Leisure, cultural and social services 1,234,968 - - -
Community development - - - -
Total expenditures 1,234,968 - 300,600 22,886
Excess (deficiency) of revenues over
(under) expenditures (963,519) 601 (272,642) 200,067
Other financing sources (uses):

Transfers in - - - -
Transfers out - - - -
Total other financing
sources (uses) - - - -
Net change in fund balance (963,519) 601 (272,642) 200,067 Fund balance, beginning of year 3,205,116 13,097 664,235 416,720 Prior year restatements
Fund balance (deficit),
beginning of year, as restated 3,205,116 13,097 664,235 416,720 Fund balance (deficit),
end of year $ 2,241,597 $ 13,698 $ 391,593 $ 616,787
(Continued)
Capital Projects Funds
171

City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
Fleet Replacement
Info Tech
Replacement
Affordable
Housing
Transportation
Impact Fee
Revenues:

Use of money and property - $ - $ 258,493 $ 315,954 $
Subventions and grants 44,899 37,350 1,358,189 -
Charges for services - 162,358 355,408 899,742
Property tax - - - -
Other revenues - - - -
Total revenues 44,899 199,708 1,972,090 1,215,696
Expenditures:

Current:

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

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

General Government 143,208 493,338 - -
Public safety 445,716 - - -
Transportation 116,435 - - 390,537
Leisure, cultural and social services 842,353 - - -
Community development - - 3,499,890 -
Total expenditures 1,547,712 493,338 3,499,890 390,537
Excess (deficiency) of revenues over
(under) expenditures (1,502,813) (293,630) (1,527,800) 825,159 Other financing sources (uses):

Transfers in 1,047,300 869,028 - -
Transfers out - (289,201) (207,000) (320,600)
Total other financing
sources (uses) 1,047,300 579,827 (207,000) (320,600)
Net change in fund balance (455,513) 286,197 (1,734,800) 504,559 Fund balance, beginning of year 3,038,907 2,696,442 10,275,530 7,100,280 Prior year restatements (1,504,676)
Fund balance (deficit),
beginning of year, as restated 3,038,907 2,696,442 10,275,530 5,595,604 Fund balance (deficit),
end of year $ 2,583,394 $ 2,982,639 $ 8,540,730 $ 6,100,163 (Continued)
Capital Projects Funds
172

City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
Infrastructure
Parkland
Development
Impact FeeCitywide OASP Park MASP Park
Revenues:

Use of money and property - $ 49,078 $ 100,569 $ 99,250 $ Subventions and grants 9,094,894 - - -
Charges for services - 343,323 132,781 -
Property tax - - - -
Other revenues - - - -
Total revenues 9,094,894 392,401 233,350 99,250
Expenditures:

Current:

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

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

General Government - - - -
Public safety - - - -
Transportation 184,599 - - -
Leisure, cultural and social services - - 441,192 -
Community development - - - -
Total expenditures 184,599 - 441,192 -
Excess (deficiency) of revenues over
(under) expenditures 8,910,295 392,401 (207,842) 99,250 Other financing sources (uses):

Transfers in 8,720,000 - - -
Transfers out (4,845,000) - - -
Total other financing
sources (uses) 3,875,000 - - -
Net change in fund balance 12,785,295 392,401 (207,842) 99,250 Fund balance, beginning of year 430,088 854,359 2,323,856 1,688,634 Prior year restatements 1,504,676
Fund balance (deficit),
beginning of year, as restated 430,088 854,359 2,323,856 3,193,310 Fund balance (deficit),
end of year $ 13,215,383 $ 1,246,760 $ 2,116,014 $ 3,292,560 (Continued)
Capital Projects Funds
173

City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
OASP
Transportation
Impact Fee Fire Impact Fee Police Impact Fee
Park Improvement
Impact FeeCitywide
Revenues:

Use of money and property $ 64,568 $ 14,584 $ 16,295 $ 84,787 Subventions and grants - - - -
Charges for services - 169,373 195,116 721,792
Property tax - - - -
Other revenues - - - -
Total revenues 64,568 183,957 211,411 806,579
Expenditures:

Current:

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

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

General Government - - - -
Public safety - - - -
Transportation - - - -
Leisure, cultural and social services - - - 51,716
Community development - - - -
Total expenditures - - - 51,716
Excess (deficiency) of revenues over
(under) expenditures 64,568 183,957 211,411 754,863
Other financing sources (uses):

Transfers in - - - -
Transfers out - - - -
Total other financing
sources (uses) - - - -
Net change in fund balance 64,568 183,957 211,411 754,863 Fund balance, beginning of year 1,408,677 214,607 237,008 1,421,722 Prior year restatements
Fund balance (deficit),
beginning of year, as restated 1,408,677 214,607 237,008 1,421,722 Fund balance (deficit),
end of year $ 1,473,245 $ 398,564 $ 448,419 $ 2,176,585 (Continued)
Capital Projects Funds
174

City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
SLR
Transportation
Impact Fee
Public Safety
Equipment
Replacement Fund Debt Service
Total Nonmajor
Governmental
Funds
Revenues:

Use of money and property $ 79,787 $ - $ 6 $ 1,422,562
Subventions and grants - - 13,664,185 -
Charges for services 792,332 - - 6,656,991
Property tax - - - 258,289
Other revenues - - - 100,497
Total revenues 872,119 - 22,102,524 6
Expenditures:

Current:

General Government - - 10,018 10,018
Public safety - 603,889 - 691,215
Transportation - - - 22,886
Community development - - - 2,844,807
Debt service:

Principal - - 867,691 867,691
Interest and fiscal charges - - 669,345 669,345
Capital:

General Government - - - 636,546
Public safety - - - 445,716
Transportation 3,704 - - 2,267,633
Leisure, cultural and social services - - - 2,760,876
Community development - - - 3,499,890
Total expenditures 3,704 603,889 1,547,054 14,716,623
Excess (deficiency) of revenues over
(under) expenditures 868,415 (603,889) (1,547,048) 7,385,901 Other financing sources (uses):

Transfers in - 391,322 1,852,660 13,305,310
Transfers out - (2,605,600) - (10,231,923)
Total other financing
sources (uses) - 391,322 (752,940) 3,073,387
Net change in fund balance 868,415 (212,567) (2,299,988) 10,459,288 Fund balance, beginning of year 1,289,408 641,538 2,141,431 44,196,801 Prior year restatements 1,112,944
Fund balance (deficit),
beginning of year, as restated 1,289,408 641,538 2,141,431 45,309,745 Fund balance (deficit),
end of year $ 2,157,823 $ 428,971 $ (158,557) $ 55,769,033 Capital Projects Funds
175

Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Charges for services
Assessments 275,400 $ 275,400 $ 264,757 $ (10,643) $
Other revenues - - 497 497
Total Revenues 275,400 275,400 265,254 (10,146)
Expenditures:

Current
Community development 275,400 275,400 396,392 (120,992) Total Expenditures 275,400 275,400 396,392 (120,992)
Excess of Revenues Over Expenditures - - (131,138) (131,138) Net Change in Fund Balance - - (131,138) (131,138)
Fund Balance, Beginning of Year (2,424) (2,424) (2,424) - Fund Balance, End of Year (2,424) $ (2,424) $ (133,562) $ (131,138) $ Budget
City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual June 30, 2024
Downtown Business Improvement District Fund
176

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual June 30, 2024
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Subventions and grants 45,000 $ 45,000 $ 69,451 $ 24,451 $ Total Revenues 45,000 45,000 69,451 24,451
Other Financing Uses:

Operating transfers out (45,000) (45,000) (45,000) -
Net Change in Fund Balance - - 24,451 24,451
Fund Balance, Beginning of Year 8,681 8,681 8,681 -
Fund Balance, End of Year 8,681 $ 8,681 $ 33,132 $ 24,451 $ Budget
Transportation Development Act (TDA)
177

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual June 30, 2024
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Use of money and property - $ - $ 56,643 $ 56,643 $
Assessments 2,140,800 2,140,800 2,210,660 69,860
Total Revenues 2,140,800 2,140,800 2,267,303 126,503
Expenditures:

Current
Community development 2,086,582 2,359,646 2,126,661 232,985 Total Expenditures 2,086,582 2,359,646 2,126,661 232,985 Excess of Revenues Over (Under) Expenditures 54,218 (218,846) 140,642 359,488 Other Financing Uses:

Operating transfers out (42,816) (42,816) (43,611) (795) Net Change in Fund Balance 11,402 (261,662) 97,031 358,693 Fund Balance, Beginning of Year 1,426,625 1,426,625 1,426,625 - Fund Balance, End of Year 1,438,027 $ 1,164,963 $ 1,523,656 $ 358,693 $ Budget
Tourism Business Improvement District Fund
178

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual June 30, 2024
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Subventions and grants 1,389,292 $ 1,389,292 $ 1,341,857 $ (47,435) $ Total Revenues 1,389,292 1,389,292 1,341,857 (47,435)
Other Financing Uses:

Operating transfers out (1,389,292) (1,389,292) (1,341,857) 47,435 Net Change in Fund Balance - - - -

Fund Balance, Beginning of Year - - - -
Fund Balance, End of Year - $ - $ - $ - $
Budget
Gas Tax
179

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual June 30, 2024
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Subventions and grants - $ - $ 417,367 $ 417,367 $
Total Revenues - - 417,367 417,367
Other Financing Uses:

Operating transfers out - - (426,419) (426,419)
Net Change in Fund Balance - - (9,052) (9,052)

Fund Balance, Beginning of Year, as restated 1,256,114 1,256,114 1,256,114 - Fund Balance, End of Year 1,256,114 $ 1,256,114 $ 1,247,062 $ (9,052) $ Budget
Community Development Block Grant (CDBG) Fund
180

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual June 30, 2024
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Subventions and grants 113,000 $ 129,271 $ 66,958 $ (62,313) $ Charges for services - - 533 533
Total Revenues 113,000 129,271 69,633 (59,638)
Expenditures:

Public Safety - 16,271 87,326 (71,055)
Total Expenditures - 16,271 87,326 (71,055)
Excess of Revenues Over (Under) Expenditures 113,000 113,000 (17,693) (130,693) Net Change in Fund Balance 113,000 113,000 (17,693) (130,693)

Fund Balance, Beginning of Year 68,456 68,456 68,456 -
Fund Balance, End of Year 181,456 $ 181,456 $ 50,763 $ (130,693) $ Budget
Law Enforcement Grants Fund
181

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual June 30, 2024
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Use of money and property - $ - $ 63,178 $ 63,178 $
Other revenues 15,000 15,000 49,763 34,763
Total Revenues 15,000 15,000 112,941 97,941
Expenditures:

Capital Projects 325,000 870,203 190,647 679,556
Total Expenditures 325,000 870,203 190,647 679,556
Excess of Revenues Over (Under) Expenditures (310,000) (855,203) (77,706) 777,497 Other Financing Uses:

Operating transfers in - 425,000 425,000 -
Operating transfers out - (90,550) (90,550) -
Total Other Financing Uses - 334,450 334,450 -
Net Change in Fund Balance (310,000) (945,753) 256,744 777,497

Fund Balance, Beginning of Year 1,269,844 1,269,844 1,269,844 - Fund Balance, End of Year $ 959,844 $ 324,091 $ 1,526,588 $ 777,497 Budget
Public Art Contributions Fund
182

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual June 30, 2024
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Use of money and property - $ - $ 10,696 $ 10,696 $
Property tax - - 258,289 258,289
Other revenues 249,349 249,349 - (249,349)
Total Revenues 249,349 249,349 268,985 19,636
Expenditures:

Community Development (199,000) 157,187 41,673 115,514
Total Expenditures (199,000) 157,187 41,673 115,514
Excess of Revenues Over (Under) Expenditures 448,349 92,162 227,312 (95,878) Other Financing Uses:

Operating transfers out (56,166) 56,166 (17,085) (73,251) Net Change in Fund Balance 392,183 148,328 210,227 (169,129)

Fund Balance, Beginning of Year 157,805 157,805 157,805 - Fund Balance, End of Year 549,988 306,133 368,032 (169,129) Avila Ranch CFD
Budget
183

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual June 30, 2024
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Use of money and property - $ - $ 5,556 $ 5,556 $
Subventions and grants 1,177,994 1,177,994 1,233,220 55,226 Total Revenues 1,177,994 1,177,994 1,238,776 60,782
Expenditures:

Capital Projects 1,177,994 1,281,139 1,271,758 9,381
Total Expenditures 1,177,994 1,281,139 1,271,758 9,381
Excess of Revenues Over (Under) Expenditures (103,145) - (32,982) 70,163 Net Change in Fund Balance (103,145) - (32,982) 70,163

Fund Balance, Beginning of Year 316,068 316,068 316,068 - Fund Balance, End of Year $ 316,068 $ 212,923 $ 283,086 $ 70,163 SB1 Road Repair Fund
Budget
184

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual June 30, 2024
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Use of money and property - $ - $ 7,821 $ 7,821 $
Charges for services - - 28,796 28,796
Total Revenues - - 36,617 36,617
Expenditures:

Community Development 25,000 25,000 2,106 22,894
Total Expenditures 25,000 25,000 2,106 22,894
Excess of Revenues Over (Under) Expenditures (25,000) (25,000) 34,511 59,511 Net Change in Fund Balance (25,000) (25,000) 34,511 59,511

Fund Balance, Beginning of Year 141,972 141,972 141,972 - Fund Balance, End of Year $ 116,972 $ 116,972 $ 176,483 $ 59,511 SB1186 CASP Certify
Budget
185

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual June 30, 2024
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Use of money and property - $ - $ 451 $ 451 $
Total Revenues - - 451 451
Expenditures:

Community Development 25,000 25,000 177,975 (152,975)
Total Expenditures 25,000 25,000 177,975 (152,975)
Excess of Revenues Over (Under) Expenditures (25,000) (25,000) (177,524) (152,524) Net Change in Fund Balance (25,000) (25,000) (177,524) (152,524)

Fund Balance, Beginning of Year 604,949 604,949 604,949 - Fund Balance, End of Year $ 579,949 $ 579,949 $ 427,425 $ (152,524) Affordable Housing BEGIN Loan Fund
Budget
186

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual June 30, 2024
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Other revenues - - 100,000 100,000
Total Revenues - - 100,000 100,000
Expenditures:

Community Development 25,000 25,000 100,000 (75,000)
Total Expenditures 25,000 25,000 100,000 (75,000)
Excess of Revenues Over (Under) Expenditures (25,000) (25,000) - 25,000 Net Change in Fund Balance (25,000) (25,000) 25,000 -

Fund Balance, Beginning of Year - - - -
Fund Balance, End of Year $ (25,000) $ (25,000) $ 25,000 - $ Avila Ranch DPA Fund
Budget
187

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual June 30, 2024
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Use of money and property - $ - $ 6 $ 6 $
Total Revenues - - 6 6
Expenditures:

General Government - - 10,018 (10,018)
Principal 1,185,195 1,185,195 867,691 317,504
Interest and fiscal charges 668,479 668,479 669,345 (866) Total Expenditures 1,853,674 1,853,674 1,547,054 306,620 Excess of Revenues Over (Under) Expenditures (1,853,674) (1,853,674) (1,547,048) 306,626 Other Financing Uses:

Operating transfers in - (1,014) 1,852,660 1,853,674
Operating transfers out (2,200,000) (2,200,000) (2,605,600) (405,600) Total other Financing Uses: - (1,014) (752,940) 1,448,074 Net Change in Fund Balance (1,853,674) (1,854,688) (2,299,988) 1,754,700

Fund Balance, Beginning of Year 2,141,431 2,141,431 2,141,431 - Fund Balance, End of Year 287,757 $ 286,743 $ (158,557) $ 1,754,700 $ Budget
Debt Service Fund
188

City of San Luis Obispo, California
Custodial Funds
For the Fiscal Year Ended June 30, 2024
The City of San Luis Obispo has established the following agency funds, which are used to account for funds held by the City as an agent for private donations and programs operated jointly with other local agencies:

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

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

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

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

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

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

San Luis Ranch CFD Fund . This fund was established to account for the financial activities of the San Luis Ranch Community Facilities District (CFD). The CFD is the City's first Mello-Roos district. Property taxes collected on properties within the CFD will be used to pay for debt service on the related infrastructure constructed within the district.

San Luis Ranch Property Acquisition . This fund has been established to account for the purchase of certain real property required to be purchased by the San Luis Ranch development for the construction of the Prado Road overpass. They City assisted with the negotiation between San Luis Ranch and the third party. The transaction is complete and the Fund will be closed.
189

City of San Luis Obispo
Combining Statement of Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2024
Hazardous General Boysen Ranch
Whale Jack Materials Task Agency Conservation
Rock Fund House Fund Force Fund Fund Easement
ASSETS
Cash and investments $ 5,713,938 $ 20,599 $ 191,406 $ 16,609,612 $ 412,438 Receivables:

Accounts 17,775 - - - -
Interest 26,605 96 916 - 1,928
Capital assets 663,072 - - - -
Total assets 6,421,390 20,695 192,322 16,609,612 414,366

LIABILITIES
Accounts payable 135,422 - 1,647 75,939 1,739
Compensated absence 51,453 - - - -
Accrued Salaries 17,087 - - - -
Other liabilities 2,000 - - - -
Total liabilities 205,962 - 1,647 75,939 1,739

NET POSITION
Restricted for
Individuals, organizations, and
other governments 6,215,428 20,695 190,675 16,533,673 412,627 Total net position $ 6,215,428 $ 20,695 $ 190,675 $ 16,533,673 $ 412,627 (Continued)
190

City of San Luis Obispo
Combining Statement of Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2024
Total
PEG City of PEG San Luis Ranch San Luis Ranch Custodial San Luis Obispo SLCUSD CFD Property Acquisition Funds
ASSETS
Cash and investments $ 146,976 $ 38,731 $ 12,925,566 $ 36,059,266 - $ Receivables:

Accounts 1 1 - - 17,777
Interest 686 209 4,649 - 35,089
Capital assets - - - - 663,072
Total assets 147,663 38,941 12,930,215 36,775,204 -

LIABILITIES
Accounts payable - - 2,535 - 217,282
Compensated absence - - - - 51,453
Accrued Salaries - - - - 17,087
Other liabilities - - - - 2,000
Total liabilities - - 2,535 - 287,822

NET POSITION
Restricted for
Individuals, organizations, and
other governments 147,663 38,941 12,927,680 36,487,382 - Total net position $ 147,663 $ 38,941 $ 12,927,680 $ 36,487,382 - $ 191

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

Assessment revenue $ - - $ - $ - $ - $
Charges for services 1,242,781 - 67,000 - -
Charges for public programming - - - - -
Contribution from developers - - 14,121,073 - -
Other revenue 1,535,732 - - 804,542 -
Use of money and property 1,487 267,853 9,124 - 18,353
Total additions 3,046,366 1,487 76,124 14,925,615 18,353 DEDUCTIONS:

Administration expenses 274,372 - - -
Contractual services 1,771,627 - - 9,135
Materials and supplies 577,105 - 41,252 - -
Public programming - - - - -
Use of developer deposits - - - 1,270,866 -
Depreciation 63,283 - - - -
Total deductions 2,686,387 - 41,252 1,270,866 9,135
Net increase (decrease) in
fiduciary net position 1,487 359,979 34,872 13,654,749 9,218 NET POSITION:

Beginning of year 19,208 5,855,449 155,803 2,878,924 403,409 End of year $ 6,215,428 $ 20,695 $ 190,675 $ 16,533,673 $ 412,627 (Continued)
City of San Luis Obispo
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the year ended June 30, 2024
192

City of San Luis Obispo
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the year ended June 30, 2024
Total
PEG City of PEG San Luis Ranch San Luis Ranch Custodial San Luis Obispo SLCUSD CFD Property Acquisition Funds
ADDITIONS:

Assessment revenue $ - - $ $ 1,274,999 $ - $ 1,274,999
Charges for services - - - 1,309,781 -
Charges for public programming 27,818 27,818 - - 55,636 Contribution from developers - - - 14,121,073 -
Other revenue - - - 12,967 2,353,241
Use of money and property 1,732 5,998 592,272 - 896,819 Total additions 33,816 29,550 1,867,271 12,967 20,011,549 DEDUCTIONS:

Administration expenses - - 920,795 1,195,167 -
Contractual services - 25,180 - 12,967 1,818,909
Materials and supplies - - - - 618,357
Public programming 1 - - - 1
Use of developer deposits - - - 1,270,866 -
Depreciation - - - - 63,283
Total deductions 1 25,180 920,795 12,967 4,966,583
Net increase (decrease) in
fiduciary net position 33,815 4,370 946,476 15,044,966 - NET POSITION:

Beginning of year, 113,848 34,571 11,981,204 21,442,416 - End of year $ 147,663 $ 38,941 $ 12,927,680 $ 36,487,382 - $ 193

194

STATISTICAL SECTION (UNAUDITED)
195

196

City of San Luis Obispo, California
Statistical Section Overview
For the Fiscal Year Ended June 30, 2024
This part of the City of San Luis Obispo’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’s overall financial health.

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

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

Debt Capacity – Schedules 14-1 9. These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

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

Operating Information – Schedules 23-26 . These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the government provides and the activities it performs.
197

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Governmental activities: Net investment in capital assets $ 150,829,869 $ 163,449,992 $ 165,100,426 $ 171,472,251 $ 174,431,254 $ 177,335,648 $ 184,387,289 $ 193,984,593 $ 205,324,234 $ 228,447,288 Restricted 2,350,838 2,762,387 2,268,499 421,954 20,458,677 29,901,136 35,603,121 41,770,187 43,626,006 35,753,131 Unrestricted (53,845,288) (49,031,893) (41,496,841) (49,909,657) (72,041,172) (73,806,116) (62,369,688) (57,458,111) (29,876,424) (14,403,912) Total governmental activities net position $ 99,335,419 $ 117,180,486 $ 125,872,084 $ 121,984,548 $ 122,848,759 $ 133,430,668 $ 157,620,722 $ 178,296,669 $ 219,073,816 $ 249,796,507 Business-type activities: Net investment in capital assets $ 125,129,704 $ 128,390,611 $ 131,149,516 $ 136,694,402 $ 139,659,544 $ 149,617,018 $ 160,750,886 $ 157,728,990 $ 170,471,787 $ 183,458,877 Restricted 2,261,213 2,278,392 2,276,526 1,558,795 500,645 4,037,611 2,493,859 2,684,781 1,653,225 10,976,119 Unrestricted 42,297,248 53,421,102 49,495,220 50,866,147 57,379,689 53,983,005 53,159,080 79,970,715 88,160,609 81,095,190 Total business-type activities net position $ 169,688,165 $ 180,164,223 $ 186,847,144 $ 189,119,344 $ 197,539,878 $ 207,637,634 $ 216,403,825 $ 240,384,486 $ 260,285,621 $ 275,530,186 Primary government (City wide totals): Net investment in capital assets $ 275,959,573 $ 291,840,603 $ 296,249,942 $ 308,166,653 $ 314,090,798 $ 326,952,666 $ 345,138,175 $ 351,713,583 $ 375,796,021 $ 411,906,165 Restricted 4,612,051 5,040,779 4,545,025 1,980,749 20,959,322 33,938,747 38,096,980 44,454,968 45,279,231 46,729,250 Unrestricted (11,548,040) 463,327 11,924,261 956,490 (14,661,483) (19,823,111) (9,210,608) 22,512,604 58,284,185 66,691,278 Total primary government net position $ 269,023,584 $ 297,344,709 $ 312,719,228 $ 311,103,892 $ 320,388,637 $ 341,068,302 $ 374,024,547 $ 418,681,155 $ 479,359,437 $ 525,326,693 Schedule 1
City of San Luis Obispo, California
Net Assets by Component
Last Ten Fiscal Years
(Accrual basis of accounting)
$-
$100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 Governmental vs Business-type Net Position
Total business-type activities net positionTotal governmental activities net position $(100,000,000)
$-
$100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 Net Position by Component
Net investment in capital assets Restricted Unrestricted 198

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Expenses:Governmental activities:

Public safety $ 26,881,732 $ 29,318,821 $ 31,806,692 $ 42,097,557 $ 34,320,108 $ 34,670,383 $ 35,226,779 $ 41,132,177 $ 26,828,837 $ 43,148,712 Transportation 11,457,311 8,792,028 9,668,840 9,229,042 7,546,278 7,416,335 8,137,479 10,395,516 10,052,069 17,740,407Culture and recreation 10,332,740 9,808,545 9,824,262 11,125,792 9,469,520 10,063,304 11,122,003 12,407,720 11,552,865 12,871,004Community development 10,960,778 12,900,275 14,656,604 13,457,993 12,573,953 11,882,018 11,918,019 15,506,092 14,768,484 19,527,448General Government - - - - 22,429,785 22,058,724 17,276,491 20,982,321 25,628,303 22,777,642Interest on long-term debt 1,015,011 1,351,468 1,170,984 1,488,183 702,885 839,661 731,045 699,284 681,023 615,966 Total governmental activities expenses 60,647,572 62,171,137 67,127,382 77,398,567 87,042,529 86,930,425 84,411,816 101,123,110 89,511,581 116,681,179 Business-type activities:

Water 17,128,041 18,136,120 19,069,967 19,523,736 20,986,430 22,914,013 21,469,967 20,892,863 22,152,285 25,666,319 Sewer 10,132,214 10,842,451 11,683,262 14,158,612 13,967,717 13,100,905 15,064,551 12,576,058 13,417,264 22,831,476 Parking 3,556,637 3,900,052 3,791,493 4,098,840 4,088,681 4,145,364 4,057,242 4,517,125 5,063,501 8,962,908 Transit 3,994,194 4,088,423 4,076,871 4,355,103 4,320,976 4,384,344 4,023,536 3,851,264 4,482,763 5,352,380 Total business-type activities expenses 34,811,086 36,967,046 38,621,593 42,136,291 43,363,804 44,544,626 44,615,296 41,837,310 45,115,813 62,813,083Total primary government expenses $ 95,458,658 $ 99,138,183 $ 105,748,975 $ 119,534,858 $ 130,406,333 $ 131,475,051 $ 129,027,112 $ 142,960,420 $ 134,627,394 $ 179,494,262Program Revenues:Governmental activities:

Charges for services:

Public safety $ 1,697,748 $ 1,673,800 $ 1,771,383 $ 1,881,725 $ 1,633,223 $ 3,045,294 $ 3,991,193 $ 3,197,692 $ 2,847,705 $ 3,378,182Transportation 1,270,787 1,691,757 1,793,010 1,669,563 2,399,692 531,424 91,509 636,874 955,012 1,157,342 Culture and recreation 2,155,411 2,048,780 3,501,837 3,487,225 4,078,539 2,508,565 3,430,224 4,046,439 4,234,538 4,761,048 Community development 7,210,132 7,974,880 8,144,128 7,355,831 9,941,951 11,812,417 15,929,420 10,509,106 10,164,525 9,717,278General Government - - - - 1,391,940 760,606 654,039 530,775 734,991 801,522 Operating grants and contributions 2,509,323 2,667,058 2,488,706 4,015,502 2,990,211 4,828,837 3,601,973 3,647,813 5,331,657 15,156,040 Capital grants and contributions 7,911,867 9,355,707 40,531 39,781 47,234 2,504,722 5,688,200 1,531,157 200,933 1,299,231 Total governmental activities program revenues 22,755,268 25,411,982 17,739,595 18,449,627 22,482,790 25,991,865 33,386,558 24,099,856 24,469,361 36,270,643Business-type activities:

Charges for services:

Water $ 20,446,730 $ 19,884,850 $ 20,180,931 $ 22,202,069 $ 24,026,385 $ 25,666,777 $ 28,340,076 $ 29,894,129 $ 27,720,676 $ 31,394,962Sewer 18,007,064 16,460,140 16,272,533 16,753,094 18,674,547 19,042,384 21,501,546 23,642,048 22,341,314 23,302,912 Parking 4,905,494 7,408,729 4,666,970 5,226,780 5,443,038 3,293,941 2,567,908 4,890,317 6,022,372 9,663,683Transit 649,899 659,471 666,296 703,451 776,808 633,566 331,352 713,777 809,969 1,003,116 Operating grants and contributions 3,148,651 2,888,820 4,180,386 3,099,618 3,259,975 4,712,832 3,742,594 5,156,782 7,355,896 6,762,934Capital grants and contributions 60,063 - - - - - - - - - Total business-type activities programs revenues 47,217,901 47,302,010 45,967,116 47,985,012 52,180,753 53,349,500 56,483,476 64,297,053 64,250,227 72,127,607 Total primary government program revenues $ 69,973,169 $ 72,713,992 $ 63,706,711 $ 66,434,639 $ 74,663,543 $ 79,341,365 $ 89,870,034 $ 88,396,909 $ 88,719,588 $ 108,398,250Net Revenues (Expenses):

Governmental activities $ (37,892,304) $ (36,759,155) $ (49,387,787) $ (58,948,940) $ (64,559,739) $ (60,938,560) $ (51,025,258) $ (77,023,254) $ (65,042,220) $ (80,410,536)Business-type activities 12,406,815 10,334,964 7,345,523 5,848,721 8,816,949 8,804,874 11,868,180 22,459,743 19,134,414 9,314,524Total primary government $ (25,485,489) $ (26,424,191) $ (42,042,264) $ (53,100,219) $ (55,742,790) $ (52,133,686) $ (39,157,078) $ (54,563,511) $ (45,907,806) $ (71,096,012) Continued
Schedule 2
City of San Luis Obispo, California
Changes in Net Position, Last Ten Fiscal Years
(Accrual Basis of Accounting)
199

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 General Revenues and Other Changes in Net Position:Governmental activities:

Sales and use taxes $ 22,408,980 $ 24,676,377 $ 24,068,665 $ 24,559,570 $ 26,444,775 $ 24,125,439 $ 32,847,453 $ 51,419,561 $ 52,374,199 $ 52,883,260 Property taxes 9,631,890 10,186,858 10,756,477 11,425,510 12,238,357 13,301,736 14,197,869 14,716,412 15,635,545 16,381,159Transient occupancy tax 6,805,742 7,127,756 7,381,989 7,514,289 8,061,087 6,325,841 6,960,035 10,650,762 11,037,037 11,063,012Utility users tax 5,211,207 5,413,720 5,539,407 5,627,356 4,919,892 5,439,144 5,225,979 5,338,325 6,904,194 6,301,505Property tax in-lieu of vehicle license fees 3,849,341 4,113,244 4,353,912 4,637,253 4,961,080 5,290,215 5,660,661 5,994,592 6,283,397 6,815,975Other taxes and fees 4,993,285 4,800,592 3,929,377 5,006,594 4,332,557 4,883,677 5,578,944 5,800,333 7,216,335 7,209,793Investment earnings 467,348 825,760 997,995 164,434 1,618,354 3,368,951 435,818 (1,638,993) 2,350,922 6,473,385Miscellaneous and other 707,781 - - - 146,579 1,001,369 1,019,626 1,213,401 1,774,126 1,369,106 Gain (loss) on disposal of capital assets - - - - - - - - - - Prior period adjustment - - - - - - 745,285 - - -
Cumulative change in accounting principle (GASB 65) - - - - - - - - - Transfers (329,452) 1,436,048 1,051,563 1,198,027 2,456,035 1,889,900 1,992,911 1,685,314 2,243,612 2,636,032 Total governmental activities 53,746,122 58,580,355 58,079,385 60,133,033 65,178,716 65,626,272 74,664,581 95,179,707 105,819,367 111,133,227Business-type activities Investment earnings $ 361,627 $ 845,906 $ 182,261 $ 320,471 $ 2,516,216 $ 2,880,634 $ 577,250 $ (1,207,118) $ 2,618,340 $ 8,367,903Cumulative change in accounting principle - - - - - - - - - -Income from investment in joint venture 239,200 - 206,700 209,300 (25,469) 153,949 519,677 585,101 391,993 198,170 Prior period adjustment - - - - - - (907,350) - - -
Transfers 329,452 (1,436,048) (1,051,563) (1,198,027) (2,456,035) (1,889,900) (1,992,911) (1,685,314) (2,243,612) (2,636,032) Total business-type activities 691,079 (350,942) (662,602) (668,256) 34,712 1,144,683 (1,803,334) (2,307,331) 766,721 5,930,041 Total primary government $ 54,437,201 $ 58,229,413 $ 57,416,783 $ 59,464,777 $ 65,213,428 $ 66,770,955 $ 72,861,247 $ 92,872,376 $ 106,586,088 $ 117,063,268Change in net position:

Governmental activities $ 15,853,818 $ 21,821,200 $ 8,691,598 $ 1,184,093 $ 618,977 $ 4,687,712 $ 23,639,323 $ 18,156,453 $ 40,777,147 $ 30,722,691 Business-type activities 13,097,894 9,984,022 6,682,921 5,180,465 8,851,661 9,949,557 10,064,846 20,152,412 19,901,135 15,244,565 Total primary government $ 28,951,712 $ 31,805,222 $ 15,374,519 $ 6,364,558 $ 9,470,638 $ 14,637,269 $ 33,704,169 $ 38,308,865 $ 60,678,282 $ 45,967,256 Changes in Net Position, Last Ten Fiscal Years
(Accrual Basis of Accounting)
Continued
Schedule 2
City of San Luis Obispo, California
200

Fiscal Sales Local Property Transient Utility Property Franchise Business Other Year and Use Sales (Note 2) (Note 1) Occupancy Users in-lieu of VLF Fees Tax Taxes Total 2014-15 15,272,683 7,136,297 9,631,890 6,805,742 5,211,207 3,849,341 2,790,077 2,203,208 707,781 53,608,226 2015-16 17,498,218 7,178,159 10,186,858 7,127,756 5,413,720 4,113,244 1,537,922 2,491,516 771,154 56,318,547 2016-17 16,737,005 7,331,660 10,756,477 7,381,989 5,539,407 4,353,912 1,557,128 2,372,249 737,826 56,767,653 2017-18 17,055,085 7,504,485 11,425,510 7,514,289 5,627,356 4,637,253 1,597,655 2,663,686 745,253 58,770,572 2018-19 18,119,545 8,325,230 12,238,357 8,061,087 4,919,892 4,961,080 1,428,296 2,630,499 273,762 60,957,748 2019-20 16,571,064 7,554,375 12,913,661 6,325,841 5,439,144 5,290,215 1,888,414 2,995,263 388,075 59,366,052 2020-21 20,067,740 12,779,713 14,197,869 6,960,035 5,225,979 5,660,661 1,796,829 3,782,115 425,136 70,896,077 2021-22 22,247,303 29,172,258 14,716,412 10,650,762 5,338,325 5,994,592 1,978,295 2,823,163 998,875 93,919,985 2022-23 21,865,468 30,508,731 15,635,545 11,037,037 6,904,194 6,283,397 2,349,603 3,281,010 1,585,722 99,450,707 2023-24 22,285,972 30,597,288 16,381,159 11,063,012 6,301,505 6,815,975 2,366,286 2,942,425 1,901,082 100,654,704 Notes:
1) Property tax revenues are presented net of SB2557 County administrative fees (approximately 3% of total property tax revenues).

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

In November 2020 voters in San Luis Obispo replaced the local half-percent sales and use tax with a 1.5% local sales and use tax (Measure G-20). (Accrual Basis of Accounting)
Schedule 3
City of San Luis Obispo, California
Governmental Activities Tax and Franchise Revenues by Source Last Ten Fiscal Years
-
5,000,000
10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Revenue Trends
Sales and Use Local Sales Property Transient Occupancy Utility UsersProperty in-lieu of VLF Franchise Fees Business Tax Other Taxes 201

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 General fund: Nonspendable: Prepaid items 60,181 56,020 3,173,248 3,520,473 51,636 - 41,155 90,797 101,462 23,481 Advances to other funds - - - - - - - - 4,845,000 -
Restricted for: Debt service 303,126 489,056 128,102 159,724 - - - - - - Committed to: General government programs 3,942,459 4,468,863 9,428,034 8,693,113 - 9,299,971 - 5,696,864 5,307,988 1,776,826 Contingency Fund - - - - - 11,830,380 - 12,014,000 13,727,000 10,826,500 Risk management - - - - - 1,955,966 - 1,845,935 585,456 585,456 Assigned to:

CalPERS pension payment - - - - - 10,200,000 - 2,000,000 2,000,000 2,000,000 Contingency Fund 10,486,931 11,092,782 10,902,368 10,171,464 13,418,400 10,251,000 - - - - Solid Waste AB939 - - - - - - - - 281,000 237,147
Establishment of Section 115 Trust - - - - 1,400,000 - 2,000,000 2,000,000 2,000,000 2,000,000 Revenue stabilization - - - - 1,000,000 - - 2,000,000 - 2,000,000 Development Services 1,848,386 382,396 41,110 596,796 531,000 899,277 710,657 530,657 464,136 214,136 SLO Repertory Theater Grant - - - - - - 3,940,000 - 3,940,000 3,940,000 Tenant Improvement program/Economic Deve - - - - - - - 1,400,000 - 1,400,000 Storm Related Costs - - - - - - - - 5,125,068 -
General government programs - - - - - - 4,270,529 - - - Public Safety 97,239 - - - 1,096,215 - 929,344 - - -
Risk management - - - - 1,498,078 - - - - -
City Attorney - - 100,000 100,000 - 100,000 100,000 - - - Subsequent years expenditures - 2,716,534 - 9,908,932 - 10,284,119 4,738,806 2,455,573 - 6,009,831 Unassigned 7,828,485 10,419,881 2,723,292 6,334,870 6,185,574 7,122,607 5,311,792 8,356,724 8,275,453 4,346,321 Total general fund 24,566,807 29,625,532 26,496,154 29,576,440 30,095,542 33,651,296 47,118,071 40,745,506 42,538,068 45,329,766 Continued
Schedule 4
City of San Luis Obispo, California
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
For the Fiscal Year Ended June 30
202

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 All other governmental funds:Nonspendable - - 5,642 (71,687) 292,641 - - 8,681 - - Restricted for: Debt service 2,140,980 2,119,724 2,119,611 1,653,109 1,791,026 2,226,898 2,575,367 2,540,255 2,141,431 - Public safety programs 16,886 23,492 20,786 3,073 - 32,332 63,418 864,848 68,456 897,746 Transportation projects - - - 8,151,487 - 9,371,824 10,519,994 8,051,050 7,567,001 11,232,312 Affordable housing programs - - - 2,944,549 - 8,698,494 9,292,304 9,893,314 11,023,649 10,215,217 Impact fee programs - - - 1,870,656 - 3,126,925 7,466,378 8,935,786 10,519,226 - Parkland development programs - - - 3,528,662 - 4,709,560 3,405,468 3,107,198 3,205,116 11,073,516 Public art programs - - - - 620,934 591,097 568,401 798,038 1,269,844 1,526,588 Tourism programs - - - - 456,023 322,975 678,554 1,147,881 1,426,625 1,523,656 Infrastructure improvements - - - - - - - - 157,805 368,032 Committed to: Affordable housing programs 2,601,882 2,562,825 5,054,332 3,974,629 - - - - - - Capital outlay 3,632,641 2,954,223 - - - - - - - -
General government programs 1,084,221 7,463,605 8,092,594 - - - - - - - Impact Fees Programs 9,410,273 549,349 8,795,074 595,256 - - - - - - Open space programs 983,402 1,265,620 588,743 2,363,347 - - - - - - Parkland development programs - 2,728,883 - - - - - - - - Contingency fund - - - 519,885 - - - - - -
Public safety programs - - - - - - - - 641,538 428,971
Assigned to: Contingency fund - - 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 Subsequent years expenditures 2,606,757 3,559,851 5,846,873 5,861,455 6,382,294 8,521,320 8,826,420 23,533,631 29,776,252 39,636,756 Unassigned (83) - - - (318,422) (149,162) (5,782) - (2,424) (292,119) Total all other governmental funds 22,476,959 20,498,689 26,059,944 23,891,661 26,619,850 38,352,263 44,290,522 59,780,682 68,694,519 77,510,675 Total all governmental funds $ 47,043,766 $ 50,124,221 $ 52,556,098 $ 53,468,101 $ 56,715,392 $ 72,003,559 $ 91,408,593 $ 100,526,188 $ 111,232,587 $ 122,840,441 For the Fiscal Year Ended June 30
Continued
Schedule 4
City of San Luis Obispo, California
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
203

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Revenues: Sales and use - general $ 15,272,683 $ 17,498,218 $ 16,737,005 $ 17,055,085 $ 17,805,482 $ 16,571,064 $ 20,067,740 $ 22,247,303 $ 21,865,468 $ 22,285,972 Sales and Use - local transaction tax 7,136,297 7,178,159 7,331,660 7,504,485 8,325,230 12,779,713 7,554,375 29,172,258 30,508,731 30,597,288 Prop. 172 Public Safety tax 409,590 405,066 405,512 397,488 314,063 416,459 425,136 529,299 544,521 520,952 Property tax 9,631,890 10,186,858 10,756,477 11,425,510 12,238,357 12,913,661 13,727,986 14,166,259 15,635,545 16,637,657 Transient Occupancy 6,805,742 7,127,756 7,381,989 7,514,289 8,061,087 6,325,841 6,960,035 10,650,762 11,037,037 11,063,012 Utility users tax 5,211,207 5,413,720 5,539,407 5,627,356 4,919,892 5,439,144 5,225,979 5,338,325 6,904,194 6,301,505 Property tax in-lieu of VLF 3,849,341 4,113,244 4,353,912 4,637,253 4,961,080 5,290,215 5,660,661 5,994,592 6,283,397 6,815,975 Franchise fees 2,790,077 1,537,922 1,557,128 1,597,655 1,428,296 1,888,414 1,796,829 1,978,295 2,349,603 2,366,286 Business tax 2,203,208 2,491,516 2,372,249 2,663,686 2,630,499 2,995,263 3,782,115 2,823,163 3,281,010 2,941,928 Cannabis tax - - - - - - - 998,875 1,127,744 1,116,495
Real property transfer 298,191 366,088 332,314 347,765 273,762 388,075 469,883 550,153 457,978 528,088 Fines, forfeitures and penalties 184,320 172,353 139,534 199,374 155,269 239,048 223,882 173,915 195,991 266,103 Use of money and property 467,348 825,760 260,169 164,434 1,996,382 2,005,968 219,507 (2,151,227) 1,999,872 5,329,747 Subventions and grants 10,858,570 11,771,980 2,624,753 4,156,333 3,110,689 7,538,893 10,719,698 6,446,192 6,364,704 17,387,665 Charges for services 12,450,887 13,622,945 15,173,707 14,672,746 18,394,586 17,828,561 22,090,479 17,657,128 18,418,552 19,108,699 Other revenues 217,710 242,744 446,456 634,391 590,796 708,579 717,440 506,722 719,724 215,095 Total revenues 77,787,061 82,954,329 75,412,272 78,597,850 85,205,470 88,103,560 104,867,083 117,082,014 127,694,071 143,482,467 Continued
Revenues, Expenditures and Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years
(Modified accrual basis of accounting)
Schedule 5
City of San Luis Obispo, California
-
50,000,000
100,000,000 150,000,000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Total Revenue
204

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Expenditures:Current: General Government $ 10,534,463 $ 12,409,567 $ 11,824,360 $ 12,709,324 $ 13,769,778 $ 14,503,410 $ 13,041,242 $ 17,197,912 $ 23,646,307 $ 17,570,930 Public safety 24,356,077 26,468,454 28,091,747 28,862,906 31,714,220 30,216,995 31,714,578 39,921,208 37,425,928 39,889,845 Transportation 2,969,111 3,317,177 3,780,804 3,565,022 3,495,909 3,710,943 4,450,572 5,131,132 5,408,704 5,557,957 Culture and recreation 7,250,398 7,428,198 7,712,834 8,571,184 8,636,582 8,416,687 9,458,448 10,440,543 11,015,177 11,088,967 Community development 10,047,272 10,770,827 10,300,894 10,815,667 10,677,334 10,477,062 11,101,465 15,067,518 14,867,023 15,345,346 Debt service: Principal 3,856,325 1,792,849 2,101,296 15,665,904 1,974,050 1,605,239 1,602,039 1,467,402 1,859,782 1,230,724 Interest 1,063,820 1,349,216 1,215,504 1,524,180 809,977 993,697 808,586 774,747 745,735 721,853 Capital: Public safety 2,371,865 1,220,759 1,772,454 506,491 706,918 182,235 107,965 248,613 1,577,415 445,716 Transportation 14,302,937 15,038,306 4,161,966 6,419,137 6,441,229 6,412,541 11,452,720 13,653,849 9,364,910 2,267,633 Leisure, cultural and social services 2,399,211 1,463,269 1,499,704 981,768 597,187 1,213,682 537,118 3,933,463 1,226,800 2,760,876 Community development (Note 1) 123,258 149,537 2,078,181 525,105 1,568,147 785,517 105,142 601,315 10,202,665 36,767,232 General government 1,684,045 590,263 633,682 1,192,424 4,695,978 2,081,482 2,492,435 1,619,793 2,365,432 1,726,059 Total expenditures 80,958,782 81,998,422 75,173,426 91,339,112 85,087,309 80,599,490 86,872,310 110,057,495 119,705,878 135,373,138 Excess of revenues over(under) expenditures (3,171,722) 955,907 238,846 (12,741,262) 118,161 7,504,070 17,994,773 7,024,519 7,988,193 8,109,329 Continued
Schedule 5
City of San Luis Obispo, California
Revenues, Expenditures and Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years
(Modified accrual basis of accounting)
Continued
-
50,000,000
100,000,000 150,000,000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Total Expenditures
205

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Other FinancingSources(Uses):Issuance of debt/refunding debt $ 8,372,323 $ 688,500 $ 1,141,468 $ 12,472,698 $ 673,095 $ - $ - $ - $ - $ (387,684) Transfers in 11,682,079 12,747,578 15,739,036 19,815,144 9,064,256 9,455,785 15,460,955 35,273,279 39,735,789 53,605,957 Transfers out (12,011,531) (11,311,530) (14,687,473) (18,617,117) (6,608,221) (7,565,885) (13,468,044) (33,587,965) (37,492,177) (50,969,925) Other financing source - SBITA - - - - - - - - 474,594 137,233Total other financing sources(uses) 8,042,871 2,124,548 2,193,031 13,670,725 3,129,130 1,889,900 1,992,911 1,685,314 2,718,206 2,385,581 Net change in fund balance $ 4,871,150 $ 3,080,455 $ 2,431,877 $ 929,463 $ 3,247,291 $ 9,393,970 $ 19,987,684 $ 8,709,833 $ 10,706,399 $ 10,494,910 Debt service as a percentage of noncapital expenditures 11.03% 5.20% 5.37% 26.64% 4.08% 3.86% 3.46% 2.55% 2.82% 2.18% Notes:1. Community Development Block Grant (CDBG) expenditures are included in the Community Development total for purposes of this schedule. 2. Prior to 2021-22, cannabis tax was included in business tax Revenues, Expenditures and Changes in Fund Balances of Governmental Funds Schedule 5
City of San Luis Obispo, California
(Modified accrual basis of accounting)
Continued
Last Ten Fiscal Years
-
50,000,000
100,000,000 150,000,000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Revenue, Expenditures, and Other
Revenue Expenditures Other Financing Sources
206

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Staffing: Salaries and wages: Regular salaries $ 23,804,510 $ 24,790,947 $ 26,944,188 $ 26,666,447 $ 27,520,149 $ 28,601,004 $ 29,014,941 $ 31,822,988 $ 35,422,024 $ 38,125,168 Temporary salaries 2,137,487 1,964,521 1,793,360 1,711,755 1,898,331 1,882,307 2,294,603 1,855,690 1,942,485 2,237,584 Overtime 3,222,698 3,473,489 3,604,336 4,420,756 4,241,294 3,292,469 4,527,789 4,412,287 4,504,561 4,443,880 Benefits: Retirement 7,943,827 9,323,782 10,394,523 10,570,883 15,150,755 12,593,753 13,344,252 24,665,892 17,908,383 17,782,639 Group health/disability insurance 3,319,117 3,828,238 4,129,004 4,638,471 4,193,021 4,291,139 4,040,575 4,327,121 5,130,991 5,487,733 Medicare 408,889 418,704 455,966 469,688 477,925 481,571 505,450 537,516 593,725 631,755 Unemployment Reimbursements 48,588 5,159 150,929 61,972 - 61,240 101,575 17,484 41,464 40,438 Total staffing 40,885,116 43,804,840 47,472,306 48,539,972 53,481,475 51,203,483 53,829,185 67,638,979 65,543,634 68,749,198 Contract services 5,903,638 6,271,607 6,962,949 6,940,018 6,557,939 6,444,957 7,190,499 9,067,321 10,328,784 9,710,231 Other operating expenditures Communications & utilities 1,945,243 2,192,384 2,023,057 2,190,695 2,444,564 2,115,821 3,348,001 3,780,633 3,867,295 3,905,223 Rents & leases 159,718 164,729 170,288 171,909 180,478 160,045 88,615 133,521 133,649 173,957 Insurance: General liability & property 1,646,605 1,847,422 1,273,133 1,658,319 1,600,962 2,196,462 1,323,824 2,071,193 2,874,417 3,163,588 Workers compensation 1,631,585 2,019,722 1,627,423 2,145,046 2,422,843 2,611,827 2,037,611 2,181,044 2,844,913 1,605,230 Other operating expenditures 3,635,542 3,079,347 3,345,191 3,017,537 3,575,930 4,902,050 4,256,574 4,363,206 8,063,807 4,597,752 Total operating expenditures 9,018,693 9,303,604 8,439,092 9,183,506 10,224,777 11,986,205 11,054,625 12,529,597 17,784,081 13,445,749 Minor capital 78,414 92,853 203,098 90,346 - - 1,070 10,510 - - Total program expenditures 55,885,861 59,472,903 63,077,445 64,753,842 70,264,191 69,634,645 72,075,379 89,246,406 93,656,498 91,905,178 Reimbursed expenditures (3,451,208) (4,008,992) (4,164,747) (4,264,633) (3,981,789) (4,277,664) (4,578,402) (4,717,442) (4,461,578) (5,511,628) Total general fund operating expenditures $ 52,434,653 $ 55,463,911 $ 58,912,698 $ 60,489,209 $ 66,282,402 $ 65,356,981 $ 67,496,977 $ 84,528,964 $ 89,194,920 $ 86,393,550 Schedule 6
City of San Luis Obispo, California
General Fund Operating Expenditures by Type
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
207

Fiscal Year Homeowners Secured Roll Nonunitary Unsecured Total Direct Market Value of Market Exemptions Gross Value Utilities Roll TOTAL Tax Rate (Note 1) Value 2014-15 41,185,200 6,512,370,260 5,032,204 297,325,321 6,814,727,785 1.00% 6,814,727,785 100% 2015-16 41,518,400 7,166,010,320 4,883,115 317,266,793 7,488,160,228 1.00% 7,488,160,228 100% 2016-17 42,109,709 7,615,940,988 5,269,573 316,965,453 7,938,176,014 1.00% 7,702,282,828 100% 2017-18 42,702,377 7,844,131,236 4,369,188 331,183,030 8,179,683,454 1.00% 8,179,683,454 100% 2018-19 43,352,906 8,688,541,007 4,231,993 359,588,899 9,052,361,899 1.00% 9,052,361,899 100% 2019-20 43,335,854 9,156,811,458 3,990,145 360,372,662 9,521,174,265 1.00% 9,521,174,265 100% 2020-21 43,445,185 9,872,892,242 4,194,503 371,969,399 10,249,056,144 1.00% 10,249,056,144 100% 2021-22 43,644,354 10,449,275,830 4,154,621 369,153,263 10,822,583,714 1.00% 10,822,583,714 100% 2022-23 44,681,189 11,352,719,604 3,840,493 414,262,072 11,770,822,169 1.00% 11,770,822,169 100% 2023-24 45,448,900 11,765,407,582 3,768,692 414,282,418 12,183,458,692 1.00% 12,183,458,692 100% Notes: 1) Valuations are established by the County Assessor of the County of San Luis Obispo, except for property owned by private utility companies, which is valued by the State of California. The City assumes that Market Values are equal to total Assessed Valuation. 2) For comparison purposes, gross assessed valuations include homeowners' exemptions. Although these exemptions reduce property tax collections, the revenue loss is reimbursed by the State of California. As such, gross assessed valuation is the revenue base used in establishing property tax-related revenues.

Source: HdL, Coren & Cone ACFR 2023-24 report - 2023/24 Roll Summary table.

Gross Assessed Valuation (Notes 1 and 2)
Schedule 7
City of San Luis Obispo, California
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
-
4,000,000,000
8,000,000,000
12,000,000,000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Total Assessed Value
Secured Roll Gross Value Nonunitary Utilities Unsecured Rolls 208

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Proposition 13 maximum tax rate (Note 2) 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Voter approved indebtedness: State Water Bond 0.00400 0.00374 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00363 Cuesta Community College 2014 A & A1 - 0.01925 0.01925 0.01925 0.01925 0.01925 0.01925 0.01925 0.01925 0.01925 San Luis Coastal Usd 2014 Series A & B - 0.04900 0.04900 0.04900 0.04900 0.04900 0.03900 0.03900 0.03500 0.08400 Total (Notes 1 and 3) 1.00400 1.07199 1.07225 1.07225 1.07225 1.07225 1.06225 1.06225 1.05825 1.10688 Notes:1. Property tax rates are levied per $100 of assessed valuation. The tax rate information provided is for Tax Rate Area 003-000, which is the largest tax rate area in the City.2. The passage of Proposition 13 on June 6, 1978 established a maximum County-wide levy for general revenue purposes of 1% of market value.

Voter-approved tax rates for the retirement of long-term liabilities were excluded from this limit.3. It is not possible to identify tax rates for individual agencies however, the following is a summary of derived property tax allocations within Tax Rate Area 003-000 for Fiscal Year 2022-23Source: HdL, Coren & Cone ACFR 2022-23 report - Direct & Overlapping Property Tax Rates table Base ERAF NetRate Allocation Apportionment
San Luis Coastal Unified School District 36.10 0.00 36.10 San Luis Obispo County - General Fund 30.32 (8.08) 22.24 City of San Luis Obispo 18.36 * (3.48) 14.88
San Luis Obispo Community College District 6.42 0.00 6.42 County School Services 3.81 0.00 3.81
City/County Library 1.98 (0.32) 1.66
Port San Luis Harbor 1.63 (0.44) 1.19
Other Agencies 1.38 (0.32) 1.06
Education Revenue Augmentation Fund (ERAF) 0.00 12.65 12.65 Total 100% 0% 100% *The County further adjusts the 18.4% base rate for revenue shifts to school districts as directed by the State as part of their cuts to local agencies, resulting in an effective rate for the City of approximately 14.9%. Source: HdL, Coren & Cone ACFR 2023-24 report - Property Tax Dollar Breakdown, San Luis Obispo County Assessor 2023-24 Post ERAF TRA Allocation Factors Schedule 8
City of San Luis Obispo, California
Property Tax Rates
Last Ten Fiscal Years
209

Number of Secured Percent of Total Number of Secured Percent of Total Owner Parcels Assessed Value Rank City Assessed Value Parcels Assessed Value Rank City Assessed Value Jamestown Premier San Luis Obispo Retail 9 $ 114,744,109 1 0.97% 9 103,367,164.00 1 1.52% CAP VIII - Mustang Village LLC 5 102,091,806 2 0.87%Sierra Vista Hospital Inc. 8 85,382,718 3 0.73% 8 72,624,606 3 1.07% San Luis Obispo Promenade DE LLC 10 56,350,000 4 0.48%
Irish Hills Plaza East LLC 5 54,268,047 5 0.46% 6 46,043,601 5 0.68% Vintage at San Luis Obispo Alderwood 2 52,020,000 6 0.44%Charles Pasquini Jr Trust Et Al 3 42,360,993 7 0.36% 9 59,870,336 4 0.88% JCC Mission LLC Et Al 1 40,344,045 8 0.34%Costco Wholesale Corporation 2 39,630,094 9 0.34% 1 33,364,921 7 0.49% Hotel San Luis Obispo 1 38,280,428 10 0.33%Target Corporation 1 25,832,537 9 0.38% Mustang-UCAL LLC 4 76,978,909 2 1.13%
Marigold Center LLC 9 26,279,600 8 0.39%
SLO Promenade Limited Partnership 9 41,126,690 6 0.60%
Stephen N. Dorsi Trust 15 23,543,338 10 0.35% Total 46 $ 625,472,240 5.32% 71 $ 509,031,702 7.49% Source: HdL, Coren & Cone ACFR 2023-24 report - Top Ten Property Taxpayers table. 2014-15 data is from the City's ACFR.

Schedule 9
2023-24 2014-15
Current Year and Nine Years Ago
Principal Property Tax Payers
City of San Luis Obispo, California

94.68%

5.32%
Property Tax Payers for 2023-24
Remaining Property Tax Payers Top 10 Property Tax Payers

92.51%

7.49%
Property Tax Payers for 2014-15
Remaining Property Tax Payers Top 10 Property Tax Payers 210

Total Secured Current Year Percent
Fiscal Tax Levy Current Year Percent Delinquencies Delinquent Year (Notes 1 and 2) Collections Collected (Note 3) (Note 3) 2014-15 9,097,280 9,097,280 100% 0 02015-16 9,707,340 9,707,340 100% 002016-17 10,250,205 10,250,205 100% 0 02017-18 10,868,920 10,868,920 100% 0 02018-19 11,648,706 11,648,706 100% 0 02019-20 12,180,662 12,180,662 100% 0 02020-21 12,957,910 12,957,910 100% 0 02021-22 13,628,729 13,628,729 100% 0 02022-23 14,458,958 14,458,958 100% 0 02023-24 15,407,147 15,407,147 100% 0 0 Notes:1. The secured property tax roll is composed of ad valorem taxes as well as special assessments, and is calculated by the San Luis Obispo County Auditor-Controller. The San Luis Obispo County Tax Collector is responsible for all property tax roll collections within the City of San Luis Obispo. The amount reported is before the SB2557 County administrative fees of approximately 3% of total property tax revenues.2. The secured levy does not include supplemental assessments, unsecured tax revenues, or prior year adjustments, which can be significant. For example, in 2012-13 revenue to the City from supplemental assessments was $99,500 and $215,100 from unsecured. A one-time refund was received from the County Auditor-Controller, refunding $632,800 representing prior overcharges for the SB2557 fee. Property tax revenues totaled $8,740,762.3. The City has elected the Teeter Plan method of property tax collection, whereby the County remits 100% of taxes levied and pursues collection and retains any delinquent taxes and related penalties and interest.Source: San Luis Obispo County Auditor-Controller - 2023-24 Property Tax Estimates and Delinquencies Report Schedule 10
City of San Luis Obispo, California
Secured Property Tax Roll Levies and Collections
Last Ten Fiscal Years
211

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Sales In Thousands of DollarsApparel stores 75,491 75,037 72,540 74,268 73,272 71,632 51,499 73,724 73,290 75,868 General merchandise stores 179,741 183,397 182,596 182,975 180,609 182,263 173,777 203,468 243,196 235,442 Food and drug stores 47,702 43,798 43,486 46,085 47,337 49,239 50,107 49,447 52,218 54,237 Eating & drinking palces 156,393 171,620 177,675 184,745 187,174 192,495 140,612 199,116 223,258 233,739 Building materials & farm tools 131,741 140,259 142,498 160,223 163,029 162,338 165,802 182,782 190,878 187,731 Auto dealers & supplies 291,444 305,584 307,628 321,567 322,904 322,867 325,523 403,466 395,345 401,756 Service stations 103,140 88,116 79,613 83,481 94,369 95,382 70,383 99,612 123,678 113,299 Other retail stores 262,830 277,546 282,551 279,100 283,525 264,913 248,229 302,766 308,160 294,173 Total retail stores 1,248,482 1,285,357 1,288,587 1,332,444 1,352,219 1,341,129 1,225,932 1,514,381 1,610,023 1,596,245 All other outlets 367,940 168,258 164,634 176,620 170,882 189,299 158,208 639,005 642,340 635,959 Total 1,616,422 1,453,615 1,453,221 1,509,064 1,523,101 1,530,428 1,384,140 2,153,386 2,252,363 2,232,204 Source: HdL, Coren & Cone ACFR 2023-24 report - Taxable Sales by Category table Schedule 11
City of San Luis Obispo, California
Schedule of Taxable Sales and Permits by Category
Last Ten Calendar Years
$-
$500,000
$1,000,000 $1,500,000 $2,000,000 $2,500,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Taxable Sales by Category
(In Thousands of Dollars)
Apparel stores General merchandise stores Food and drug storesEating & drinking palces Building materials & farm tools Auto dealers & suppliesService stations Other retail stores All other outlets 212

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

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

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

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

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

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

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

Source: State Board of Equalization, State of California Schedule 12
City of San Luis Obispo, California
Historical Sales and Use Tax Rates
213

No. of No. of
Certificates Percent Certificates Percent
Construction 1,070 11.8% 926 10.9%
Manufacturing 133 1.5% 136 1.6%
Transportation/Utilities 76 0.8% 50 0.6%
Wholesale 124 1.4% 127 1.5%
Retail 1,307 14.5% 1,017 11.9%
Professional 1,148 12.7% 1,102 12.9%
Residential Rental 2,699 29.8% 2,759 32.3%
Commercial Rental 292 3.2% 297 3.5%
Services 2,195 24.3% 2,117 24.8%
Total business certificates issued 9,044 100% 8,531 100% Home occupations 712 7.9% 718 8.4%
Located outside City limits 2,257 25.0% 2,059 24.1%
Located in Downtown Business Improvement District 572 6.3% 584 6.8% Source: City of San Luis Obispo Finance Department - Revenue Division Fiscal Years Ended June 30, 2024 and 2023
Schedule of Business Tax Certificates Issued
City of San Luis Obispo, California
Schedule 13
2024 2023

11.8%

1.5%

0.8% 1.4%

14.5%

12.7% 29.8%

3.2%

24.3%
Business Tax Types for Fiscal Year End 2024
Construction
Manufacturing
Transportation/Utilities
Wholesale
Retail
Professional
Residential Rental
Commercial Rental
Services
214

Percentage of
Fiscal Lease Purchase Lease SBITA Lease Purchase Installment SBITA Total Primary Per Gross Assessed Year Bonds Financing Loans Liability Liability Bonds Financing Sales Agreement Loans Liability Government Capita Value 2014-15 28,556,715 1,035,146 766,092 - - 25,983,320 - 8,481,043 18,559,851 - 83,382,167 1,834 1.28% 2015-16 27,762,893 1,374,773 679,314 - - 25,323,405 - 7,932,327 17,647,622 - 80,720,334 1,741 1.16%2016-17 26,328,540 1,898,652 591,647 - - 24,072,708 - 7,366,468 16,709,160 - 76,967,175 1,660 0.99%2017-18 23,484,450 1,599,769 503,101 - - 21,815,204 - 6,783,114 15,743,808 - 69,929,446 1,497 0.88% 2018-19 22,171,441 1,413,937 413,667 - - 19,542,657 - 6,181,902 14,750,783 - 64,474,387 1,385 0.79% 2019-20 21,084,777 1,381,486 323,380 - - 18,185,089 - 5,562,462 26,133,837 - 72,671,031 1,583 0.76% 2020-21 20,038,779 734,673 232,111 - - 16,772,171 - 4,919,407 56,229,546 - 98,926,687 2,102 0.97% 2021-22 18,954,856 390,420 139,961 125,003 172,229 15,307,178 - 4,257,343 99,918,648 - 139,265,638 2,922 1.29% 2022-23 17,829,558 36,245 46,887 570,922 407,465 13,795,824 - 3,575,863 120,213,508 50,596 156,526,868 3,275 1.33% 2023-24 16,560,495 - 429,171 - 321,349 60,137,512 - 2,869,551 138,064,103 25,637 218,407,818 4,486 1.79% Source: City of San Luis Obispo Finance Department
Governmental Activities Business-Type Activities
Schedule 14
City of San Luis Obispo, California
Per Capita Outstanding Debt By Type
Last Ten Fiscal Years
$-
$20,000,000 $40,000,000 $60,000,000 $80,000,000
$100,000,000 $120,000,000 $140,000,000 $160,000,000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Outstanding Debt Per Capita
Governmental Activities Business-Type Activities
215

Service Ratio of Net
Total Taxable General Payable from Net Bonded Debt Net Bonded Assessed Bonded Enterprise Bonded to Assessed Debt per
Fiscal Year Population Value Debt Revenues Debt Value Capita 2014-15 45,484 6,814,727,785 0 0 0 0.0% 0
2015-16 46,117 7,488,160,228 0 0 0 0.0% 0
2016-17 46,724 7,938,176,014 0 0 0 0.0% 0
2017-18 46,548 8,179,683,454 0 0 0 0.0% 0
2018-19 46,802 9,052,361,899 0 0 0 0.0% 0
2019-20 45,920 9,521,174,265 0 0 0 0.0% 0
2020-21 47,063 10,249,056,144 0 0 0 0.0% 0
2021-22 47,653 10,822,583,714 0 0 0 0.0% 0
2022-23 47,788 11,770,822,169 0 0 0 0.0% 0
2023-24 48,684 12,183,458,692 0 0 0 0.0% 0
Notes:1. Valuations are established by the County Assessor of the County of San Luis Obispo, except for property owned by private utility companies, which is valued by the State of California.2. See Schedule of Demographic and Economic Statistics for population data. 3. Personal income information is not available. Net Bonded Debt is expressed as a ratio to Assessed Value. Source: HdL, Coren & Cone ACFR 2023-24 report - Demographic and Economic Statistics tableDemographics changed from FY to Calendar Year Last Ten Fiscal Years
Schedule 15
City of San Luis Obispo, California
Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capital 216

Amount Applicable
Percent Applicable to the City of
to the City of San Luis Obispo
San Luis Obispo as of June 30, 2024
Overlapping tax and assessment debt:

San Luis Obispo Community College District 205,380,000 $ 17.05% 35,017,290 $ San Luis Coastal Unified School District 234,401 52.61% 123,316,022 City of San Luis Obispo Community Facilities District No. 2019-1 19,530,000 100.00% 19,530,000 Total overlapping tax and assessment debt 177,863,312
Overlapping General Fund long-term debt:

San Luis Obispo County General Fund Obligations 81,021,650 $ 17.12% 13,870,096 $ San Luis Obispo County Pension Obligations 22,760,324 17.12% 3,896,340 17,766,436
Direct long-term debt:

City of San Luis Obispo 2001 IBank Loan - Parking 100.00% 2,857,619 $ City of San Luis Obispo 2009 IBank Loan - Sewer 100.00% 5,971,321 City of San Luis Obispo 2014 LOVR Lease Revenue Bonds 100.00% 6,085,000 City of San Luis Obispo 2018 Clean Water State Revolving - Sewer 100.00% 118,132,362 City of San Luis Obispo 2018 Lease Revenue Bonds 100.00% 11,440,000 City of San Luis Obispo 2018 Water Revenue Refunding Bonds 100.00% 7,365,000 City of San Luis Obispo 2020 IBank Loan - Water 100.00% 11,102,800 City of San Luis Obispo 2023 Lease Revenue Refunding Bonds 100.00% 45,780,000 City of San Luis Obispo Lease liability 100.00% 429,171 City of San Luis Obispo Subscription based IT agreements liability 100.00% 346,986 City of San Luis Obispo Unamortized bond premium Governmental Activities 100.00% 1,062,295 City of San Luis Obispo Unamortized bond premium Business-Type Activities 100.00% 4,965,712 Less self-supporting issues:

City of San Luis Obispo obligations supported by enterprise revenues (198,227,252) Total direct debt 17,311,015
$ 212,940,763
Total direct and overlapping long-term debt
Ratio of long-term debt to assessed valuation and population Gross Assessed Valuation $ 12,183,458,692
Population 48,684
Percent of Gross Per Capita
Amount Assessed Valuation Long-Term Debt
Direct and Overlapping Debt:

Gross 411,168,014 $ 3.4% $8,445.65
Net 212,940,763 1.7% 4,374
Direct Debt:

Gross 66,086,252 $ 0.5% $1,357.45
Net 17,311,015 0.1% 356
Source: California Municipal Statistics, Inc., HdL, Coren & Cone ACFR 2023-24 report - Demographic and Economic Statistics table Schedule 16
City of San Luis Obispo, California
Direct and Overlapping Long-Term Debt
Fiscal Year Ended June 30, 2024
The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. 217

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Legal debt limit 244,175$ 272,833$ 288,836$ 306,738$ $ 339,464 $ 357,044 $ 384,339 $ 405,847 $ 441,406 $ 456,880Total debt applicable to limitLegal debt margin 244,175 272,833 288,836 306,738 339,464 357,044 384,339 405,847 441,406 456,880Total debt applicable to the limit as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Legal Debt Margin Calculation for Fiscal Year 2023-24Gross Assessed Valuation $ 12,183,458,692 Legal Debt Limit - 3.75% of Gross Assessed Valuation $ 456,879,701 Long-term Debt:

Revenue Bonds Secured by Capital Leases $ 63,305,000
Water Revenue Bonds 7,365,000
70,670,000
Less deductions allowed by law:

Revenue Bonds Secured by Capital Leases 63,305,000
Water Revenue Bonds 7,365,000
70,670,000
Total debt applicable to computed limit $0
Legal debt margin $ 456,879,701
Note: The California Government Code provides for a legal debt limit of 15% of gross assessed valuation based on 25% of market value, or a legal debt limit of 3.75%. The City's debt management policy, however, sets a more restrictive debt limit of 2% of assessed valuation.

Schedule 17
City of San Luis Obispo, CaliforniaComputation of Legal Debt Margin Last Ten Fiscal Years
(Amounts Expressed in Thousands)
218

Less Operating & Net Revenue Coverage
Fiscal Operating Development Other Maintenance Available for With Year Revenues Impact Fees Revenues Expenses Bond Debt Service Principal Interest Total Coverage Impact Fees 2014-15 20,552,417 (2,471,501) 59,594 (13,451,298) 4,689,212 1,285,686 906,775 2,192,461 214% 327% 2015-16 20,137,422 (1,543,268) 53,731 (14,056,603) 4,591,282 1,245,486 881,318 2,126,804 216% 288% 2016-17 19,873,517 (1,266,674) 410,484 (14,754,114) 4,263,213 1,290,748 837,657 2,128,405 200% 260% 2017-18 21,997,054 (2,131,345) 325,268 (16,250,751) 3,940,226 1,336,267 792,337 2,128,604 185% 285% 2018-19 23,992,758 (3,745,666) 948,324 (15,995,459) 5,199,957 2,281,739 858,471 3,140,210 166% 285% 2019-20 25,666,777 (3,723,460) 663,838 (19,485,472) 3,121,683 1,367,920 637,348 2,005,268 156% 341%2020-21 28,340,076 (4,744,361) 65,386 (17,765,625) 5,895,476 960,390 527,682 1,488,072 396% 715%2021-22 29,671,678 (5,160,020) 222,451 (17,296,355) 7,437,754 1,001,055 489,266 1,490,321 499% 845%2022-23 27,472,542 (3,616,307) 248,134 (18,530,525) 5,573,844 1,036,530 449,224 1,485,754 375% 619% 2023-24 31,141,045 (4,686,719) 253,917 (20,703,368) 6,004,875 512,290 403,063 915,353 656% 1168% Notes:2. The City refinanced its 2005 Refunding Lease Revenue Bonds, 2006 Lease Revenue Bonds, and 2009 Lease Revenue Bonds into the 2018 Lease Revenue Bonds.4. Net revenues available for debt service exclude development impact fees. 5. Operating expenses exclude depreciation and amortization.Source: City of San Luis Obispo Utilities Department FY 2023-24- Debt Schedule for 2023-25 Financial Plan
Schedule 18
City of San Luis Obispo, California
Revenue Bond Coverage - Water Fund
Last Ten Fiscal Years

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

Bonded Debt Service Requirements

1. Debt service requirements include 2012 Refunding Revenue Bonds, 2006 Refunding Revenue Bonds, and the 2004 state revolving loan 219

Net Revenue
Fiscal Gross Operating Available for
Year Revenues Expenses Bond Debt Service Principal Interest Total Coverage 2014-15 4,905,494 (2,409,027) 2,496,467 447,962 504,407 952,369 262% 2015-16 4,606,249 (2,757,299) 1,848,950 466,185 501,631 967,816 191% 2016-17 4,659,562 (2,671,028) 1,988,534 481,981 487,407 969,388 205% 2017-18 6,651,038 (2,998,555) 3,652,483 498,058 469,314 967,372 378% 2018-19 5,443,038 (3,100,113) 2,342,925 381,250 226,931 608,181 385% 2019-20 3,840,059 (3,080,588) 759,471 237,900 201,866 439,766 173% 2020-21 2,768,419 (3,093,183) (324,764) 247,050 192,350 439,400 (74%) 2021-22 4,890,317 (3,552,603) 1,337,714 257,725 182,468 440,193 304% 2022-23 6,022,372 (4,148,805) 1,873,567 265,350 172,159 437,509 428% 2023-24 9,663,683 (5,937,228) 3,726,455 277,550 161,545 439,095 849% Notes:

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

FY 2023-24- Debt Schedule for 2023-25 Financial Plan
Schedule 19
City of San Luis Obispo, California
Revenue Bond Coverage - Parking Fund
Last Ten Fiscal Years

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

Bonded Debt Service Requirements
220

Personal Public Elementary and Cuesta College
Calendar Income Median Secondary School Full Time Enrollment Unemployment Year Population (1) in 000's (1) Age (1) Enrollment (2) SLO Campus (3) Rate (1) 2014 45,484 1,191 25.0 7,520 5,116 5.9%
2015 46,117 1,211 25.0 7,638 5,401 4.9%
2016 46,724 1,270 25.4 7,718 4,757 4.5%
2017 46,548 1,300 26.1 7,755 4,987 3.2%
2018 46,802 1,398 26.5 7,813 4,515 2.5%
2019 45,920 1,505 26.2 7,801 4,687 2.4%
2020 47,063 1,625 26.7 7,491 1,114 7.7%
2021 47,653 1,717 26.7 7,537 2,173 5.0%
2022 47,788 1,865 26.0 7,717 3,011 2.6%
2023 48,684 1,984 25.2 7,741 3,240 3.1%
Sources:1. HdL, Coren & Cone ACFR 2023-24 report - Demographic and Economic Statistics table3. https://www.cuesta.edu/about/depts/research/Enrollment_Management.html Post Term FTES Dashboard, 320 Year Reported by academic year start date Schedule 20
City of San Luis Obispo, California
Demographic and Economic Statistics
For The Last Ten Calendar Years

2. CA Dept of Education DataQuest: Enrollment Reports for San Luis Coastal Unified, by Academic Year start date; https://www.cde.ca.gov/sdprofile/details.aspx?cds=40688090000000 221

Percentage Percentage
Number of Total City Number of Total City
Employer Employees Rank Employment Employees Rank Employment *Cal Poly State University 1 13.44% 3,320 3,055 1 10.70% Cal Poly Corporation (Foundation) 2 11.78% 2,910 1,400 5 4.90% *County of San Luis Obispo 3 11.53% 2,847 2,547 2 8.80% Pacific Gas & Electric Company 4 7.24% 1,788 1,900 3 6.70% *California Men's Colony 5 5.95% 1,470 1,540 4 5.40%
San Luis Coastal Unified School District 6 4.50% 1,112 902 6 3.20% *Cuesta Community College 7 3.51% 867 440 9 1.50%
Sierra Vista Regional Medical Center 8 3.04% 750
French Hospital Medical Center 9 2.78% 686
City of San Luis Obispo 10 2.51% 620
Mindbody 650 7 2.30%
California Department of Transportation 544 8 1.90%
Community Action Partnership 410 10 1.40%
Total 16,370 66.28% 13,388 46.80%
San Luis Obispo City - Labor Force at 6/30/2024 24,700
*Although not directly in City limits, these are still major employers within the City Source for the 2023-24 employers information is the Major Employers in San Luis Obispo County from State of California Employment Development Department's website;
https://labormarketinfo.edd.ca.gov/majorer/countymajorer.asp?CountyCode=000079. 2014-15 data is from the City's ACFR.
2023-24 2014-15
Schedule 21
City of San Luis Obispo, California
Principal Employers
Current Year and Nine Years Ago

66.28%

33.72%
City Wide Employers for 2023-24
Top 10 Employers All Other Employers

13.44%

11.78%

11.53%

7.24%

5.95%

4.50%

3.51%

3.04%

2.78%

2.51%
Top Ten Employers for 2023-24
*Cal Poly State University Cal Poly Corporation (Foundation) *County of San Luis Obispo Pacific Gas & Electric Company *California Men's Colony San Luis Coastal Unified School District *Cuesta Community College Sierra Vista Regional Medical Center French Hospital Medical Center City of San Luis Obispo
222

Function 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Public Safety
Police Sworn 60.0 61.0 61.0 61.5 61.5 64.5 65.0 64.0 64.0 67.0 Non-sworn 25.5 25.5 25.5 24.0 24.0 24.0 25.5 27.0 27.0 28.0 Fire Sworn 49.0 50.0 47.0 47.0 47.0 47.0 47.0 47.0 47.0 48.0 Non-sworn 4.0 4.0 10.0 10.0 10.0 10.0 9.5 10.5 10.5 12.5 Public Utilities 64.8 67.1 69.1 69.1 69.1 69.1 69.9 70.6 70.6 80.1Transportation 28.9 36.8 36.8 36.8 36.8 36.8 37.1 43.3 44.3 40.2Culture and recreation 34.0 35.0 35.0 35.0 35.0 34.0 33.0 43.0 43.0 47.0Community Development 40.0 51.0 51.0 47.4 47.9 47.5 47.5 54.5 54.5 58.0General Government 56.0 57.0 61.0 61.0 62.3 64.8 72.3 87.8 87.8 92.7Total 362.2 387.4 396.4 391.8 393.6 397.7 406.8 447.7 448.7 473.5 Ratio of Sworn Police Personnel per 1,000 Population:* 1.32 1.33 1.31 1.38 1.31 1.34 1.38 1.34 1.34 1.38 Ratio of Sworn Fire Personnel per 1,000 Population:* 1.08 1.06 1.01 0.99 1.00 1.02 0.99 0.99 0.98 0.99 *Population numbers may not include Cal Poly students or faculty that live on campus and are served by City personnel.Note: See Schedule of Demographic and Economic Statistics for population data.Source: City of San Luis Obispo Finance Department Last Ten Fiscal Years
Schedule 22
City of San Luis Obispo, California
Regular Authorized Positions
223

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Function/Program:Police:Calls for police/fire service 36,515 38,300 39,620 39,103 37,825 37,335 40,907 44,183 43,104 41,683 Incident numbers issued 31,048 32,542 33,360 32,730 31,471 31,472 35,695 38,290 36,474 35,084 Police reports written 8,435 8,852 8,675 7,735 6,999 6,297 5,852 6,637 6,137 6,708 Violations cited 6,648 7,673 7,649 7,524 5,874 4,020 3,445 3,735 4,851 5,126 Citations issued 6,204 7,038 7,030 6,752 5,287 3,660 3,056 3,349 4,531 4,719 Collision reports 630 587 608 609 623 481 419 483 487 533 Violent crimes:* 237 173 177 178 191 187 201 225 266 245 Willful homicide* - - - - 1 - 1 2 - -
Forcible rape* 44 29 38 44 55 39 37 25 37 31
Robbery* 25 13 21 23 33 34 24 33 37 44
Aggravated assault* 168 131 118 111 103 114 139 165 192 170 Property crimes:* 542 637 731 644 728 728 793 885 985 667 Burglary** 206 225 251 172 244 277 284 272 254 183
Motor vehicle theft* 71 87 95 94 74 74 117 174 119 90
Larceny-theft:* 1,162 1,335 1,730 1,516 1,493 1,387 1,219 1,398 1,372 1,010 Over $400* 265 325 385 378 410 377 392 439 612 394
$400 and under* 897 1,010 1,345 1,138 1,083 1,010 827 959 760 616 Fire:Medical responses (Note 1) 3,417 3,540 4,538 4,248 3,715 3,884 3,544 3,857 4,675 4,482Fire suppression responses (Note 1) 111 151 143 163 122 127 133 136 146 198Hazardous materials responses (Note 1 and 3) 21 22 21 17 25 29 98 133 153 108 Other responses (Note 1) 1,929 2,158 1,799 1,785 2,100 2,140 1,745 2,097 2,417 2,331 Total service responses 5,478 5,871 6,501 6,213 5,962 6,180 5,520 6,223 7,391 7,119 Fire Suppression Training Hours 8,149 6,714 6,348 7,719 8,410 10,835 11,033 16,015 20,814 19,531Fire and life-safety inspections (Note 4) 2,476 2,516 3,756 3,738 2,002 3,128 1,871 2,092 1,790 1,809Arson investigations (Note 2) 17 44 8 12 24 21 13 5 17 5 Education activities (# of people) 23,697 23,680 23,575 23,540 2,690 2,700 2,031 2,000 3,500 3,000Public Utilities:Water/Sewer customer accounts 14,953 15,167 15,188 15,505 15,555 15,672 15,958 16,256 16,703 17,015 Miles of sewerline 138 138 138 143 143 146 148 148 148 148 Miles of waterline *187 191 197 187 190 191 191 191 191 191 Water service line repairs and renewals (incl. recyc 50 60 50 57 38 48 35 47 53 55 Sewer main stoppages 13 - 11 4 10 8 11 14 12 1
Acre feet of water delivered - Nacimiento 839 3,574 3,817 3,753 3,484 1,470 2,449 4,460 2,096 - Acre feet of water delivered - Salinas 1,986 8 273 853 790 2,165 1,337 650 949 1,251 Acre feet of water delivered - Whale Rock 2,615 1,375 949 924 800 1,556 1,641 399 2,118 4,027 Continued
Schedule 23
City of San Luis Obispo, California
Operating Indicators and Capital Asset Statistics by Function Last Ten Fiscal Years
224

Schedule 23
City of San Luis Obispo, California
Operating Indicators and Capital Asset Statistics by Function Last Ten Fiscal Years
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Function/Program:Transportation:Signals and lights: Intersections with traffic signals 68 70 70 70 70 70 72 73 73 73 Traffic signal service requests 808590607159 93 145 188 197 Streetlights operated & maintained 2,300 2,300 2,300 2,280 2,280 2,280 2,400 2,477 2,531 2,531 Streetlight service requests 175 45 50 13 8 11 33 47 61 69 Roadways: Estimated miles of paved streets 133 133 133 134 134 134 134 135 143 143 Pavement condition index 72 71 71 70 73 70 73 70 76 73
Traffic collisions 720 531 482 501 431 441 259 361 384 388 Parking spaces provided (lot, garage & street) 3,176 2,953 2,892 2,871 2,865 2,865 2,765 2,817 2,607 2,740 Parking citations written 20,690 24,213 23,348 21,647 24,415 21,240 17,748 39,254 44,439 26,427 Total transit passengers 1,099,274 1,209,708 1,131,716 945,288 981,995 715,380 179,456 528,000 515,007 575,255Leisure, Cultural and Social Services (Note 5):Open space acres maintained 3,510 3,510 3,510 3,775 4,040 4,040 4,040 4,040 4,040 4,040 Open space easement acres 3,200 3,200 3,200 3,200 3,500 3,500 3,500 3,500 3,500 3,500 Trail mileage 495252555556626565 67
Total golf rounds played 33,674 30,572 28,196 35,670 24,662 16,428 24,222 17,991 16,392 20,858Acres of park landscape maintained 157 157 157 500 570 530 106 106 107 115City Maintained Trees 19,000 20,000 20,000 20,000 20,000 20,000 12,970 12,970 12,976 13,414 Children's services program enrollment totals 2,360 2,115 2,115 1,950 2,050 1,775 1,483 1,611 1,834 2,015Triathlon: participants, spectators, and volunteers 5,500Annual Senior Center Membership * 265 331 350 315 192 248 325 315Facility permits processed 836 1,305 1,073 864 909 650 298 455 714 813Annual aquatics attendance (total) 83,107 68,403 96,687 97,701 87,690 55,202 51,235 62,224 66,621 75,418Adult athletic teams registered 320 325 325 362 292 184 112 168 167 151Youth athletic participants registered 1,350 1,300 1,150 1,115 1,140 618 611 1,083 1,180 1,368Special event applications processed 103 77 101 88 95 40 2 37 45 72 Banner permits processed 47 87 56 45 81 78 48 26 80 70
Instructional class enrollments 1,751 1,151 1,724 1,439 1,118 595 626 1,212 900 755 Continued
Continued
225

Schedule 23
City of San Luis Obispo, California
Operating Indicators and Capital Asset Statistics by Function Last Ten Fiscal Years
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Function/Program:Community Development (Note 6):Housing characteristics: Single family units (annually cumulative) 11,133 11,230 11,306 11,413 11,510 11,693 11,853 12,072 12,169 12,336 2-4 units (annually cumulative) 2,692 2,695 2,789 2,851 2,865 2,869 2,888 2,928 2,977 2,983 5 or more unit structures (annually cumulative) 5,767 5,804 6,038 6,097 6,148 6,209 6,309 6,524 6,678 6,808 Mobile homes (annually cumulative) 1,482 1,482 1,482 1,482 1,482 1,483 1,483 1,483 1,448 1,448 Total (annually cumulative) 21,074 21,615 21,211 21,843 22,005 22,254 22,533 23,007 23,272 23,575 Building permits issued (Note 7): 597 584 584 623 **202 556 721 662 605 678 Residential: Single family residential incl. condos 114 97 62 125 159 171 253 202 157 203 Multi-family residential (includes second units & 5 32 13 18 19 17 33 16 24 8 Non-residential 27 13 14 10 15 12 2 3 11 10
Other permits: Additions, alterations, demolitions 460 522 545 502 381 510 371 366 415 409 Other improvements (motel rooms) - - - - 1 - - - 60 69
Total 633 634 637 655 575 710 659 587 667 699
Approximate value of building permits (in thousands) Residential: Single family residential $ 36,722 26,441$ 15,024$ 19,707$ 24,300$ 28,026$ 50,758$ 35,824$ 31,058$ 50,717 Multi-family residential $ 26,499 8,172 13,500$ $ 17,249$ 21,162$ 33,606$ 10,545$ 56,085$ 20,985$ 71,330 Non-residential $ 9,791 11,484$ 51,110$ 6,248$ 20,430$ 16,981$ 17,475$ 22,665$ 44,601$ 54,261 Other permits:

Additions, alternations, demolitions (incl. swimm$ 22,897 30,230$ 27,711$ 14,928$ 34,596$ 60,812$ 78,780$ 29,207$ 58,766$ 34,062 Total $ 95,909 81,655$ 102,017$ 58,132$ 100,488$ 139,425$ 157,558$ 143,783$ 155,410$ 210,370 Building inspections conducted 6,641 7,195 10,745 9,974 7,537 8,670 7,959 10,470 10,423 9,948 Home occupation permits processed/applied for 113 163 144 112 112 131 133 140 101 117 Development permit applications received 293 253 236 215 215 338 269 282 244 109 Continued
Continued
226

Schedule 23
City of San Luis Obispo, California
Operating Indicators and Capital Asset Statistics by Function Last Ten Fiscal Years
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Function/Program:General Government:Business tax certificates issued: Located outside City limits 1,602 2,018 1,699 1,872 1,948 1,839 1,913 1,932 2,057 2,257 Total certificates issued 7,805 7,597 8,118 8,230 8,205 7,675 7,732 8,371 8,531 9,044 Citywide recruitments (total) 129 103 103 97 99 86 90 155 142 143 Fleet vehicles maintainedCity-wide fleet & equipment assets 300 318 323 339 338 340 345 347 365 361 Replaces prior categoryTelephone lines managed 1,037 1,005 998 907 971 963 1,071 1,101 1,101 1,099 Cell phones & modems supported 460 476 453 492 481 487 464 538 595 593 IT users supported 511 515 467 471 488 475 487 511 560 575 * Data from California Department of Justice based on calendar year** Data only reflects the second half of the Fiscal YearNotes: Some workload indicators are projections.1. In Fiscal year 2010-11, numbers reported used observed code from Spillman rather than condition code. 2. Police Department Conducts Arson Investigations, Fire Department Conducts Cause and Origin Investigations. Reported number is Cause and Origin Investigations5. Leisure, Culture and Social Services Indicators for FY 19-20 were lower compared to previous years due to COVID-19 program closures and capacity restrictions.7. Excludes special permits such as plumbing, mechanical, electrical, signs, and grading as well as plan check permits.Source: City of San Luis Obispo Departments Continued

4. Beginning in 2020, the fire department began utilizing new mobile inspection software that uses a different inspection methodology counting the building rather than the number of individual units within the building.

6. Beginnig in 2016-17, building permit data reported in terms of calendar years, in alignment with State-mandated reporting requirements. Beginning in 2019-20 all Community Development Indicators are reported by calendar year.3. Beginning in 2020-21, the Fire Department includes all "Hazardous Condition" calls for service as categorized by the National Fire Incident Reporting System (NFIRS). Previously only chemical or flammible liquid spills were captured under this function. Moving forward this function also includes electrical and biological hazards among others. 227

Fiscal Historic Increase/ Sales Increase/ Deliveries Increase/ Year Connections (Decrease) Revenues (Decrease) In Acre Feet (Decrease) 2014-15 14,847 0.01% 17,530,717 -4.72% 5,354 (9.76%)
2015-16 15,167 1.40% 17,939,024 2.33% 4,957 (7%)
2016-17 15,357 1.25% 18,196,937 1.44% 5,039 2%
2017-18 15,505 0.96% 19,159,169 5.29% 5,530 10%
2018-19 15,555 0.32% 19,577,182 2.18% 5,074 (8%)
2019-20 15,672 0.75% 21,519,632 9.92% 5,191 2%
2020-21 15,958 1.82% 22,757,325 5.75% 5,602 8%
2021-22 16,256 1.87% 24,129,231 6.03% 5,732 2%
2022-23 16,703 2.75% 23,297,077 -3.45% 5,130 (11%)
2023-24 17,015 1.87% 26,088,324 11.98% 4,678 (9%)
Source: City of San Luis Obispo Utilities Department.

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

0.00%

5.00%

10.00%

15.00%
Revenue Increase/Decrease
228

As of Monthly Multi-family Single family
June 30 of Each Year Consumption Price per hcf* dwelling Commercial Landscape dwelling Multi-family dwelling Commercial 2015 Base Fee $ 5.28 $8.32 min. charge per $8.32 min. charge per $8.32 min. charge per 1-8 hcf 6.92 dwelling unit dwelling unit dwelling unit
8 + hcf 8.65 $9.17/unit volume charge** $9.17/unit volume charge** $9.17/unit volume charge** 2016 Base Fee $ 9.98 $8.32 min. charge per $8.32 min. charge per $8.32 min. charge per Base Fee Drought Surcharge 0.74 dwelling unit dwelling unit dwelling unit 1-8 hcf 6.92 $9.17/unit volume charge** $9.17/unit volume charge** $9.17/unit volume charge Drought Surcharge 1.10
9 + hcf 8.65
Drought Surcharge 1.37
2017 Base Fee $ 9.98 $8.57 min. charge per $8.57 min. charge per $8.57 min. charge per Base Fee Drought Surcharge 0.74 dwelling unit dwelling unit dwelling unit 1-8 hcf 6.92 $9.44/unit volume charge** $9.44/unit volume charge** $9.44/unit volume charge Drought Surcharge 1.10
9 + hcf 8.65
Drought Surcharge 1.37
2018 Base Fee $ 12.33 $8.57 min. charge per $8.57 min. charge per $8.57 min. charge per 1-8 hcf 7.27 dwelling unit dwelling unit dwelling unit
9 + hcf 9.08 $9.44/unit volume charge** $9.44/unit volume charge** $9.44/unit volume charge 2019*** Residential SFR Base Fee $ Base fee determined Base fee determined Base fee determined Base fee determined 20.61 Base fee determined Base fee determined 1-5 hcf by meter size**** 5.90 by meter size**** by meter size**** by meter size **** by meter size **** by meter size **** 6-12 hcf $6.73/unit volume charge $8.17/unit volume charge $10.02/unit volume charge $7.85/unit volume charge** $7.85/unit v 6.87 olume charge** $7.85/unit volume charge** 13 + 12.59
2020 Residential SFR Base Fee $ Base fee determined Base fee determined Base fee determined Base fee determined 21.74 Base fee determined Base fee determined 1-5 hcf by meter size**** 6.22 by meter size**** by meter size**** by meter size **** by meter size **** by meter size **** 6-12 hcf $7.10/unit volume charge $8.62/unit volume charge $10.57/unit volume charge $8.28/unit volume charge** $8.28/unit v 7.25 olume charge** $8.28/unit volume charge** 13 + 13.28
2021 Residential SFR Base Fee $ Base fee determined Base fee determined Base fee determined Base fee determined 22.52 Base fee determined Base fee determined 1-5 hcf by meter size**** 6.44 by meter size**** by meter size**** by meter size **** by meter size **** by meter size **** 6-12 hcf $7.36/unit volume charge $8.93/unit volume charge $10.95/unit volume charge $8.58/unit volume charge $8.58/unit vol 7.51 ume charge $8.58/unit volume charge 13 + 13.76
2022 Residential SFR Base Fee $ Base fee determined Base fee determined Base fee determined Base fee determined 23.31 Base fee determined Base fee determined 1-5 hcf by meter size**** 6.67 by meter size**** by meter size**** by meter size **** by meter size **** by meter size **** 6-12 hcf $7.62/unit volume charge $9.24/unit volume charge $11.33/unit volume charge $8.88/unit volume charge $8.88/unit vol 7.77 ume charge $8.88/unit volume charge Continued
Schedule 25
City of San Luis Obispo, California
Water and Sewer Rates
Last Ten Fiscal Years
Water Rates (Note 1) Sewer Rates (Monthly)
229

Schedule 25
City of San Luis Obispo, California
Water and Sewer Rates
Last Ten Fiscal Years
As of Monthly Multi-family Single family
June 30 of Each Year Consumption Price per hcf* dwelling Commercial Landscape dwelling Multi-family dwelling Commercial 2023 Residential SFR Base Fee 24.12 Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined 1-5 hcf 6.9 by meter size**** by meter size**** by meter size**** by meter size **** by meter size **** by meter size **** 6-12 hcf 8.04 $7.88/unit volume charge $9.57/unit volume charge $11.73/unit volume charge $9.19/unit volume charge $9.19/unit volume charge $9.19/unit volume charge 13 + 14.74
2024 Residential SFR Base Fee 28.15 Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined Base fee determined 1-5 hcf 7.94 by meter size**** by meter size**** by meter size**** by meter size **** by meter size **** by meter size **** 6-12 hcf 9.16 $8.91/unit volume charge $9.43/unit volume charge $9.63/unit volume charge $9.44/unit volume charge $9.44/unit volume charge $9.88/unit volume charge 13 + 15.79
*hcf = 100 cubic feet** Total monthly volume charge capped based on average winter water consumption.*** Beginning FY 18-19, different rate structures for SFR, Multi-Family, Commercial, and Landscape****See table below *****2020-21 rate increase deferred to February 1, 2021 due to COVID-19Notes:1. Rates are for services inside the City, outside the City rates are double.2. Third tier applies only to single-family residential customers. Source: City of San Luis Obispo Utilities Department As of Water Sewer As of Water Sewer
June 30 of Each Year Base charge Base Charge June 30 of Each Year Base charge Base Charge 2021***** 3/4 inch or less $ 22.52 $ 20.43 2022 3/4 inch or less $ 23.31 $ 21.15 1-inch 37.60 34.12 1-inch 38.92 35.31

1.5-inch 75.04 68.02 1.5-inch 77.67 70.40
2-inch 120.06 108.88 2-inch 124.26 112.69
3-inch 225.27 204.28 3-inch 233.15 211.43
4-inch 375.50 340.53 4-inch 388.64 352.45
6-inch 750.82 680.85 6-inch 777.10 704.68
8-inch 1,201.35 1,089.40 8-inch 1,243.40 1,127.53
10-inch - 1,566.17 10-inch - 1,620.99
2023 3/4 inch or less $24.12 $21.89 2024 3/4 inch or less $28.15 $23.58 1-inch 40.28 36.55 1-inch 47 39.37

1.5-inch 80.38 72.86 1.5-inch 93.75 78.51
2-inch 128.61 116.63 2-inch 150.05 125.673-inch 241.31 218.83 3-inch 281.5 235.78 4-inch 402.24 364.78 4-inch 469.25 393.04
6-inch 804.3 729.34 6-inch 938.25 785.858-inch 1,286.92 1,166.99 8-inch 1,501.25 1,257.40 10-inch - 1,677.72 10-inch - 1,807.71
Water Rates (Note 1) Sewer Rates (Monthly)
Continued
Base fee charges for Multi-Family, Non-Residential, Irrigation Meter Size
Base fee charges for Multi-Family, Non-Residential, Irrigation Meter Size
230

Service Water Use Percent of
Name Type (acre-feet) Total
City of San Luis Obispo Parks & Golf Landscape 91.66 1.6% Silver City Mobile Home Park Mobile Homes 50.94 1.1%
CAP VIII - Mustang Village LLC Apartments 50.30 0.8%
Sierra Vista Hospital Care Facilities 45.27 0.6%
Dignity Health #366 Care Facilities 42.99 0.6%
ELL-CAP 97-Laguna Lake Community Mobile Homes 42.42 0.6% Creekside Community Mobile Homes 30.95 0.5%
Embassy Suites Hotel 24.55 0.5%
SLO Coastal Unified School 22.83 0.4%
Rancho San Luis Mobile PK Utility 18.00 0.3%
All Other 92.9%
Total 419.91 100.00%
2023-24
Source: City of San Luis Obispo - Utilities Department
Schedule 26
City of San Luis Obispo, California
Water System - Ten Largest Water Users
Fiscal Year Ended June 30, 2024

1.6%

1.1%

0.8%

0.6%

0.6%

0.6%

0.5%

0.5%

0.4% 0.3%
Ten Largest Water Users
City of San Luis Obispo Parks & Golf
Silver City Mobile Home Park
CAP VIII - Mustang Village LLC
Sierra Vista Hospital
Dignity Health #366
ELL-CAP 97-Laguna Lake Community
Creekside Community
Embassy Suites
SLO Coastal Unified
Rancho San Luis Mobile PK

92.9%

7.1%
Ten Largest Water Users vs All
Other Water Users
All Other
Top 10
231

City of San Luis Obispo
Transportation
Development Act Funds
Financial Statements
Years Ended
June 30, 2024 and 2023

City of San Luis Obispo, California
Transportation Development Act Funds
Financial Statements
Years Ended June 30, 2024 and 2023

City of San Luis Obispo,
California
Transportation Development
Act Funds Report and
Financial Statements
Year Ended June 30, 2024 and 2023
Table of Contents
Page
Independent Auditor’s Report.................................................................................................................................................. 1 Balance Sheets ........................................................................................................................................................................ 5 Statements of Revenues, Expenditures and Changes in Fund Balance – Years Ended June 30, 2024...................................................................................................................................................... 6 Statements of Fund Net Position.............................................................................................................................................. 7 Statements of Revenues, Expenses and Changes in Fund Net Position – Years Ended June 30, 2024...................................................................................................................................................... 8 Statements of Cash Flows ....................................................................................................................................................... 9 Notes to Financial Statements................................................................................................................................................ 11 TDA Fund Supplementary Information
Schedule of Revenues and Expenditures – Budget and Actual – Years Ended June 30, 2024.................................................................................................................................................... 20 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in accordance with Government Auditing Standards .................................................... 21 Independent Auditor’s Report on Transportation Development Act Compliance ................................................................. 23

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INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of San Luis Obispo
San Luis Obispo, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the Transportation Development Act (TDA) Fund and the Transit Fund of the City of San Luis Obispo, California, as of and for the year ended June 30, 2024 and 2023, and the related notes to the financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the TDA Fund and the Transit Fund, as of June 30, 2024 and 2023, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

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

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

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

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

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

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

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

Emphasis of Matter
As discussed in Note 1, the financial statements present only the TDA Fund and the Transit Fund and do not purport to, and do not, present fairly the financial position of the City, as of June 30, 2024 and 2023, and the changes in its financial position or where applicable, its cash flows for the years ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
2

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

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

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

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

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 24, 2024 on our consideration of the TDA fund and the Transit Fund’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the TDA fund and the Transit Fund’s internal control over financial reporting and compliance.

Badawi & Associates, CPAs
Berkeley, California
December 24, 2024
3

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4

2024 2023
Assets
Cash and investments $ 33,132 $ 8,681
Total assets $ 33,132 $ 8,681
Liabilities and Fund Balance
Liabilities
Unearned revenue $ - $ -
Total liabilities - -
Fund balances:

Unassigned 33,132 8,681
Total liabilities and fund balance $ 33,132 $ 8,681
City of San Luis Obispo, California
Transportation Development Act (TDA) Fund
Balance Sheets
June 30, 2024 and 2023
The accompanying notes are an integral part of these financial statements. 5

2024 2023
Revenues - intergovernmental allocations $ 69,451 $ 76,869 Other financing uses - operating transfers to City of San Luis Obispo (45,000) (76,869) Excess of revenues over other financing uses 24,451 -
Fund balance - beginning of year 8,681 8,681
Fund balance - end of year $ 33,132 $ 8,681
City of San Luis Obispo, California
Transportation Development Act (TDA) Fund
Statements of Revenues, Expenditures and Changes in Fund Balance June 30, 2024 and 2023
The accompanying notes are an integral part of these financial statements. 6

2024 2023
Assets
Current assets:

Cash and investment $ 8,850,539 $ 7,980,433
Interest receivable 40,580 26,996
Due from other governments 2,397,142 2,148,836
Total current assets 11,288,261 10,156,265
Capital assets:

Infrastructure 110,972 110,972
Buildings and improvements 5,212,278 5,212,278
Transit operating equipment 10,558,191 9,006,717
Construction in progress 2,522,125 2,408,227
Total capital assets 18,403,566 16,738,194
Less accumulated depreciation (10,810,219) (10,373,759) Total capital assets, net of accumulated depreciation 7,593,347 6,364,435 Total assets 18,881,608 16,520,700
Deferred Outflows of Resources
Pension related 222,768 223,664
Other post‐employment benefits related 19,436 25,046
Total deferred outflows of resources 242,204 248,710
Liabilities
Current liabilities:

Accounts payable 639,534 915,768
Accrued salaries and compensated absences 62,067 31,477 Unearned revenues 8,466,347 7,009,295
Total current liabilities 9,167,948 7,956,540
Noncurrent liabilities:

Compensated absences, net of current portion 13,847 5,630 Net pension liability 791,956 771,572
Net other post‐employment benefits liability 25,947 43,984 Total noncurrent liabilities 831,750 821,186
Total liabilities 9,999,698 8,777,726
Deferred Inflows of Resources
Pension related 815 2,280
Other post‐employment benefits related 21,807 10,643
Total deferred inflows of resources 22,622 12,923
Net Position
Net investment in capital assets 7,593,347 6,364,435
Restricted 1,508,145 1,614,326
Total net position $ 9,101,492 $ 7,978,761
City of San Luis Obispo, California
Transit Fund
Statements of Fund Net Position
June 30, 2024 and 2023
The accompanying notes are an integral part of these financial statements. 7

2024 2023
Operating revenues:

Passenger fares $ 250,790 $ 206,521
Special transit fares 750,000 600,000
Other revenue 2,326 3,448
Total operating revenues 1,003,116 809,969
Operating expenses:

Purchased transportation 3,006,116 2,387,952
Other transportation services 587,497 702,098
Fuel and lubricants 406,007 365,359
Other materials and supplies 42,037 12,691
Salaries and wages 275,338 142,243
Fringe benefits 135,434 47,276
General and administrative 463,491 365,544
Depreciation 436,460 459,600
Total operating expenses 5,352,380 4,482,763
Operating loss (4,349,264) (3,672,794)
Nonoperating revenues:

Transportation Development Act operating grants 733,905 714,539 Transportation Development Act capital grants 479,938 - Federal Transit Administration operating grants 2,802,275 2,743,473 Federal Transit Administration capital and planning grants 684,498 1,339,692 State of Good Repair (SGR) Grant 394,054 8,722
Interest 377,325 99,366
Total nonoperating revenues 5,471,995 4,905,792
Change in net position 1,122,731 1,232,998
Net position - beginning of year 7,978,761 6,745,763
Net position - beginning of year, as restated 7,978,761 6,745,763 Net position - end of year $ 9,101,492 $ 7,978,761
City of San Luis Obispo, California
Transit Fund
Statements of Revenues, Expenses and Changes in Net Position Years Ended June 30, 2024 and 2023
The accompanying notes are an integral part of these financial statements. 8

2024 2023
Cash flows from operating activities:

Cash received from customers $ 2,211,862 $ 3,246,567
Cash payments to suppliers for goods and services (4,317,891) (3,022,778) Cash payments to General Fund for interfund services (463,491) (365,544) Cash payments to employees for services (353,413) (189,741) Net cash used in operating activities (2,922,933) (331,496) Cash flows from noncapital financing activities:

Operating grants received 4,614,732 4,806,426
Net cash provided by noncapital financing activities 4,614,732 4,806,426 Cash flows from capital and related financing activities:

Acquisition and construction of capital assets (1,665,372) (2,325,169) Net cash used in capital and related financing activities (1,665,372) (2,325,169) Cash flows from investing activities:

Interest on investments 363,741 83,001
Net cash provided by (used in) investing activities 363,741 83,001 Net increase (decrease) in cash and cash equivalents and investments 390,168 2,232,762 Cash and cash equivalents and investments - beginning of year 7,980,433 5,747,671 Cash and cash equivalents and investments - end of year $ 8,370,601 $ 7,980,433 City of San Luis Obispo, California
Transit Fund
Statements of Cash Flows
Years Ended June 30, 2024 and 2023
The accompanying notes are an integral part of these financial statements. 9

2024 2023
Reconciliation of operating loss to net cash used in operating activities:

Operating loss $ (4,349,264) $ (3,672,794)
Adjustments to reconcile operating loss to net cash used in operating activities:

Depreciation 436,460 459,600
Changes in operating assets, deferred outflows, liabilities, and deferred inflows:

Accounts receivable (248,306) (271,533)
Accounts payable (276,234) 445,322
Unearned revenue 1,457,052 2,708,131
Accrued salaries and compensated absences 38,807 9,566
Pension related deferred outflows and inflows and net pension liability 19,815 (3,046) OPEB related deferred outflows and inflows and net OPEB liability (1,263) (6,742) Net cash used in operating activities $ (2,922,933) $ (331,496) Reconciliation of cash and cash equivalents and investments to the statement of fund net position:

Cash and investment $ 8,850,539 $ 7,980,433
Total cash and cash equivalents and investments $ 8,850,539 $ 7,980,433 Statements of Cash Flows, Continued
Years Ended June 30, 2024 and 2023
City of San Luis Obispo, California
Transit Fund
The accompanying notes are an integral part of these financial statements. 10

City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2024 and 2023
Note 1 - THE REPORTING ENTITY
The City of San Luis Obispo (the City) operates a fixed route public transportation system within the City limits and to the California Polytechnic State University (Cal Poly). Vehicle operations and vehicle maintenance are provided under contract by a private transportation company. Nonvehicle-related support and administrative services are provided by City staff.

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

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

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

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

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

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

Revenue from grants is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the fiscal year when the resources are to be used or the fiscal year when use is first permitted; matching requirements, in which the Transit Fund must provide local resources to be used for a specific purpose; and expenditures requirements, in which the resources are provided to the Transit Fund on a reimbursement basis. 11

City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2024 and 2023

Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Annual Financial Statements
The financial statements of the Transportation Development Act (TDA) Fund and the Transit Fund are intended to reflect the financial position; results of operations and cash flows where applicable in conformity with generally accepted accounting principles and are not intended to present the financial position, results of operations, or cash flows of the City of San Luis Obispo, California.

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

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

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

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

Capital Assets
Capital assets are recorded at cost and depreciated using the straight-line method over their estimated useful lives, ranging from 5 to 20 years. Capital assets are defined by the City as assets with an initial, individual cost of more than $25,000. Detailed capital assets can be found in Note 5.
12

City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2024 and 2023

Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Net Pension Liability, Deferred Outflows and Deferred Inflows The City recognizes a net pension liability, which represents the City’s excess of the total pension liability over the fiduciary net position of the pension reflected in the actuarial reports provided by the California Public Employees’ Retirement System (CalPERS) plans (Plans). The City has allocated a proportionate share of the net pension liability, deferred outflows, deferred inflows and pension expense to the Transit Fund. The net pension liability is measured as of the City’s prior fiscal year-end.

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

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

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

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

Valuation Date June 30, 2023 and 2021
Measurement Dates June 30, 2023 and 2022
Measurement Periods July 1, 2022 to June 30, 2023,
and July 1, 2021 to June 30, 2022
Fund Balance
The TDA Fund’s financial statements report fund balance in classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purpose for which amounts in the funds can be spent. The Fund does not have a fund balance in the current fiscal year, therefore classification is not necessary. However, GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, identifies five components of fund balance – nonspendable, restricted, committed, assigned and unassigned.

Nonspendable - This component includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. 13

City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2024 and 2023

Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Fund Balance (Continued)
Restricted - This component consists of amounts that have constraints placed on them either externally by third-parties (creditors, grantors, contributors, or laws or regulations of other governments) or by law through constitutional provisions or enabling legislation. Enabling legislation authorizes the City to assess, levy, charge or otherwise mandate payment of resources (from external resource providers) and includes legally enforceable requirements (compelled by external parties) that those resources be used only for the specific purposes stipulated in the legislation.

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

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

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

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

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

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

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

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

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

Accordingly, actual results could differ from those estimates. 14

City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2024 and 2023

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

At June 30, 2024 and 2023, cash and investments consisted of the following:

Investment Fair Value Measurements
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. Investment securities classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. Investment securities classified in Level 2 of the fair value hierarchy are valued using matrix pricing or market corroborated pricing. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices.

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

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

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

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

The City’s investment policy also includes portfolio maturity targets. A minimum of 20% of the portfolio will be invested in securities maturing in one year or less. Up to 80% of the portfolio can be invested in securities with a maturity over one year, with no more than 10% of the portfolio invested in securities with a maturity over five years. 2024 2023
Cash and investment $ 8,883,671 $ 7,989,114
15

City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2024 and 2023

Note 3 - CASH AND CASH EQUIVALENTS AND INVESTMENTS, Continued Credit Risk
This is the risk of loss due to the failure of the security issuer or backer. The City’s policies to mitigate credit risk include:
 Limiting investments to the safest types of securities. The California Government Code limits the investment vehicles available to local agencies. The credit risk of these securities is measured by the assignment of a rating by a nationally recognized statistical rating organization.
 Pre-qualifying the financial institutions, broker/dealers, intermediaries and advisors with which the City will do business.

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

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

Additional Cash and Investment Disclosures
See the City of San Luis Obispo June 30, 2024 and 2023 Annual Comprehensive Financial Reports for additional cash and investment disclosures.

Note 4 - DUE FROM OTHER GOVERNMENTS
At June 30, 2024 and 2023, the amounts due from other governments were as follows:
2024 2023
Federal Transit Administration - capital and operating grants 2,397,142 $ 1,315,809 $ California Polytechnic State University - 150,000
Total 2,397,142 $ 1,465,809 $
16

City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2024 and 2023

Note 5 - CAPITAL ASSETS
Capital Assets activity for the fiscal year ended June 30, 2024, was as follows:

Capital Assets activity for the fiscal year ended June 30, 2024, was as follows:

Note 6 - INTERGOVERNMENTAL ALLOCATIONS
The City has been allocated the following funds from the State Transit Assistance Fund (STAF), Local Transportation Fund (LTF) and State of Good Repair (SGR) for the years ended June 30, 2024 and 2023. The amounts have been and will be used for both operating expenses and capital assets.

Balance Deletions/ Balance
June 30, 2023 Additions Transfers/Adjustment June 30, 2024 Capital assets not being depreciated:

Construction in progress $ 2,408,227 $ 1,665,372 $ (1,551,474) $ 2,522,125 Capital assets being depreciated:

Infrastructure 110,972 - 110,972 -
Buildings and improvements 5,212,278 - 5,212,278 -
Transit operating equipment 9,006,717 - 1,551,474 10,558,191 Total capital assets being depreciated 14,329,967 - 1,551,474 15,881,441 Less accumulated depreciation (10,373,759) (436,460) (10,810,219) - Total capital assets, net of accumulated depreciation 6,364,435 $ $ 1,228,912 $ 7,593,347 - $ Balance Deletions/ Balance
June 30, 2022 Additions Transters June 30, 2023
Capital assets not being depreciated:

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

Infrastructure 110,972 - 110,972 -
Buildings and improvements 5,212,278 - 5,212,278 -
Transit operating equipment 9,021,099 (14,382) - 9,006,717 Total capital assets being depreciated 14,344,348 - 14,329,967 - Less accumulated depreciation (9,928,541) (385,400) (59,818) (10,373,759) Total capital assets, net of accumulated depreciation 4,498,866 $ $ 1,939,769 $ (74,200) $ 6,364,435 Article Section 2024 2023
LTF 3.0 99233.3 $ 69,451 $ 76,869
LTF 4.0 99260 1,953,245 2,647,859
STAF 6.5 99313 648,214 361,527
STAF 6.5 99314 69,436 69,101
SGR 6.5 99314 9,054 8,722
SGR 6.5 99313 385,000 -
$ 3,134,400 $ 3,164,078
Applicable
Allocating TDA Statute Amount
17

City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2024 and 2023

Note 6 - INTERGOVERNMENTAL ALLOCATIONS, Continued
For the years ended June 30, 2024 and 2023, the City also directly allocated $1,607,897 and $1,068,248, respectively, of LTF Article 4.0, Section 99260 funds to San Luis Obispo Regional Transit Authority (SLORTA). These funds are not shown in the accompanying financial statements.

In addition to TDA allocations for the year ended June 30, 2023, the City received a Low-Carbon Transit Operations Program (LCTOP) allocation of $873,992 to be spent toward the purchase of two electric transit vehicles. As of June 30, 2024, the vehicles had been placed in service.

Note 7 - FARE REVENUE RATIOS
For the years ended June 30, 2024 and 2023 the City had fare revenue ratios of 121%, and 159%, respectively, computed as follows:

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

TDA regulations require a minimum ratio of 20% for a municipality the size of the City. The City is in compliance with the applicable TDA regulations for the year ended June 30, 2024 and June 30, 2023.

Note 8 - PENSIONS
The City contributes to the California Public Employees’ Retirement System (CalPERS) for its employees and participates in an agent-multiple employer plan (Miscellaneous Plan) for its miscellaneous employees. The City has allocated a portion of the Miscellaneous Plan that relates to the Transit Fund. The portion of the net pension liability allocated to the Transit Fund for the years ended June 30, 2024 and 2023 were $791,956 and $771,572, respectively. The portion of the deferred outflows of resources allocated to the Transit Fund for the years ended June 30, 2024 and 2023 were $222,768 and $223,664, respectively. The portion of the deferred inflows of resources allocated to the Transit Fund for the years ended June 30, 2024 and 2023 were $815 and $2,280, respectively. The portion of the pension expense allocated to the Transit Fund for the years ended June 30, 2024 and 2023 were $19,815 and $(3,046), respectively, and is shown as a part of total fringe benefits in the related fiscal year. 2024 2023
Operating revenues - fares $ 1,000,790 $ 806,521
Other local support - federal grants 3,486,773 4,083,165 (a) Net Operating revenues 4,487,563 4,889,686
(b) Net operating costs, net of depreciation and vehicle lease costs $ 4,915,920 $ 4,023,165 Exclude capital expenses under uniform system of accounts for purposes of calculating fare revenue ratios but
treated as operating expenses for financial statements (1,202,446) (955,181) (b) Adjusted operating costs for purposes of calculating fare revenue ratios $ 3,713,474 $ 3,067,984 (c) Fare revenue ratio [(a) / (b)] 121% 159%
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City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2024 and 2023

Note 8 - PENSIONS, Continued
Additional Pension Disclosures
See the City of San Luis Obispo June 30, 2024 and 2023 Annual Comprehensive Financial Reports for additional pension disclosures as well as required supplementary information.

Note 9 - OTHER POST-EMPLOYMENT BENEFITS (OPEB)
The City’s primary other post-employment benefits (OPEB) cost obligation is for retiree health benefits under its election to participate in the CalPERS Health Benefit Program, an agent multiple-employer defined benefit OPEB plan, under the “unequal contribution option.” The City has allocated a portion of the plan that relates to the Transit Fund. The portion of the net OPEB liability allocated to the Transit Fund for the years ended June 30, 2024 and 2023 were $25,947 and $43,984, respectively. The portion of the deferred outflows of resources allocated to the Transit Fund for the years ended June 30, 2024 and 2023 were $19,436 and $25,046, respectively. The portion of the deferred inflows of resources allocated to the Transit Fund for the years ended June 30, 2024 and 2023 were $21,807 and $10,643, respectively. The portion of the OPEB expense allocated to the Transit Fund for the years ended June 30, 2024 and 2023 were $1,064 and $(3,413), respectively, and is shown as a part of total fringe benefits in the related fiscal year.

Additional OPEB Disclosures
See the City of San Luis Obispo June 30, 2024 and 2023 Annual Comprehensive Financial Reports for additional OPEB disclosures as well as required supplementary information.

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

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

Note 11 - SUBSEQUENT EVENTS
Events subsequent to June 30, 2024 have been evaluated through December 24, 2024, which is the date the financial statements were available to be issued. Management did not identify subsequent events that required disclosure. 19