San Luis Obispo City Council
June 17, 2025

Financial Plan Page 345

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2001035
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 200,000
Local Revenue Measure (Capital Outlay 401) - - - - - - - - - 200,000 2001035 - Emily Street Extension
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Emily Street Extension
Local Revenue Measure (Capital Outlay 401) - - - - - - - - - 200,000 This project will extend roadway and curb, gutter, and sidewalk to the railroad right of way from its existing limits. It will also create a bike and pedestrian pathway connection to the end of High Street and the railroad station parking lot through UPRR right of way. 2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
New Asset
Transportation
Infrastructure and Sustainable Transportation
Emily Street Extension
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 346

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2001049
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 50,000 50,000 2,000,000
Sewer Fund (602) - - - - - 50,000 50,000 - - 2,000,000
2001049 - WRRF Major Equipment Maintenance
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 WRRF Major Equipment Maintenance
Sewer Fund (602) - - - - - 50,000 50,000 - - 2,000,000
Major maintenance of the Water Resource Reclamation Facility (WRRF) includes ongoing upkeep of treatment process systems, pumps, blowers, electrical and control systems, and related infrastructure necessary for a reliable and compliant wastewater treatment operation. As the WRRF is currently undergoing a major upgrade, significant maintenance activities are not expected in the near term. However, planning for long-term maintenance in the outyears of the Financial Plan is essential to ensure continued regulatory compliance, operational reliability, and cost predictability.
2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Maintenance
Maintenance
Infrastructure and Sustainable Transportation
WRRF Major Equipment Maintenance
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 347

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2001039
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 145,000
Sewer Fund (602) - - 145,000 - - - - - - -
2001039 - Sewer Main Replacement: Broad, Murray, and Chorro Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Sewer Main Replacement: Broad, Murray, and Chorro
Sewer Fund (602) - - 145,000 - - - - - - -
The City’s wastewater collection system includes approximately 140 miles of sewer lines and related operational equipment. Some pipes are over 100 years old, and are undersized. Maintenance requirements increase dramatically as pipeline and equipment approach the end of their useful life. Pipeline and operational equipment require ongoing maintenance and condition assessment to prioritize periodic replacement, ensure proper function, and prolong service life. The objective of this project is to replace clay sewer pipes from 1968 located near Murray Street and along the creek parallel to Chorro Street that has shown high inflow or infiltration flows based on recorded surcharges, and high recorded flow rates during major storm events. The first phase of this project will look at design parameters with the objective of replacing the sewer main with new plastic pipe using open-trench construction, pipe bursting, slip-line, or cured in place rehabilitation methods.
2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Replacement
Maintenance
Infrastructure and Sustainable Transportation
Sewer Main Replacement: Broad, Murray, and Chorro
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 348

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2001040
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 100,000
Water Fund (601) 100,000 - - - - - - - - -
2001040 - Waterline Replacement: Chorro - Highland to Meinecke 24- inch Pipeline Replacement
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Waterline Replacement: Chorro Street From Highland to Meinecke Water Fund (601) 100,000 - - - - - - - - -
The water transmission pipeline along Chorro Street from Highland to Meinecke is scheduled for replacement by the Water Master Plan.

Installed in 1953 using concrete cylinder pipe (CCP) and cast-iron materials, the pipeline does not meet current seismic standards and needs replacement within the next 5 years. The existing 18-inch CCP will be replaced with a new 24-inch seismic restrained ductile iron pipe for the distribution of treated water into the Foothill and Downtown service areas. The new alignment will follow Environmental Protection Agency (EPA)-recommended design guidelines for “lifeline services” providing reliable water resources during catastrophic events. This project will allow bypass pumping opportunities for future pipeline replacement projects and future interconnections between the two major pressure zones: High Pressure and the Downtown/Foothill Zone. 2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Replacement
Maintenance
Infrastructure and Sustainable Transportation
Pipeline Replacement
Waterline Replacement: Chorro - Highland to Meinecke 24-inch Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 349

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2001041
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 480,000
Water Fund (601) 480,000 - - - - - - - - -
2001041 - Water Treatment Plant - Filter Media Replacement and Underdrain Repairs
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Water Fund (601)
Filter Media Replacement and Underdrain Repairs
480,000 - - - - - - - - -
The ongoing maintenance of the facilities and equipment at the Water Treatment Plant is necessary to prolong the useful life of the facilities and ensure staff’s ability to operate the plant and deliver potable water to the City of San Luis Obispo. The proposed project includes a study phase to analyze the condition of the water filter media and associated undrain system. The study will develop a framework for the design and construction of a new filter media of equal or greater performance, which is a required treatment process to meet State and Federal regulations for drinking water standards.
2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Maintenance
Maintenance
Infrastructure and Sustainable Transportation
Underdrain Repairs
Water Treatment Plant - Filter Media Replacement and
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 350

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2001042
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 2,750,000
Sewer Fund (602) - 2,750,000 - - - - - - - -
2001042 - Sewer-main Replacement: Chorro - Boysen to Rougeot Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Chorro - Boysen to Rougeot Sewer Pipeline Replacement
Sewer Fund (602) - 2,750,000 - - - - - - - -
The 2015 Wastewater Infrastructure Renewal Strategy (IRS or masterplan) identified sewer service areas with capacity constraints from stormwater infiltrations into the sewer system. One of the capacity constrained areas (Area A) is located north of Foothill and west of Chorro, and is currently undergoing sewer main improvements to remove existing clay sewer pipes with new fused plastic pipes using high density polyethylene (HDPE). Other ongoing improvements to reduce capacity constraints include replacement of sewer laterals through lateral rebate programs or as triggered by building permit submittals. Additionally, the collaboration with the 790 Foothill development identified the opportunity to improve the conditions in Area A by transferring the sewer serving the project site and adjacent parcels from Area A to the Area C sewer pipe network, which has available capacity. The proposed pipeline replacement project will expand on this initial point repair completed by the development, and replace the existing 6-inch sewer main along Chorro Street with a larger pipe from Highland to Meinecke.
2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Maintenance
Maintenance
Infrastructure and Sustainable Transportation
Sewer-main Replacement: Chorro - Boysen to Rougeot
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 351

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2001043
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 45,000 45,000
Water Fund (601) - 45,000 - - 45,000 - - - - -
2001043 - Recycled Water Pump Station Maintenance
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 RW Effluent Meter Replacement
Water Fund (601) - 45,000 - - - - - - - -
Water Fund (601)
Recycled Water Pump Upgrade
- - - - 45,000 - - - - -
The recycled water pump station and storage tank was constructed within the Water Resource Recovery Facility (WRRF) in 2003 and is need of maintenance work. The required maintenance includes asset replacement of existing pipe supports and pipe fittings that experienced settlements due to pressure surges and minor corrosion problems. The project will correct the existing deficiencies with new pipeline spools and re-coat the exterior of the pipe manifold to extend the life of the pump station infrastructure, and install new programmable logic controller that will integrate with the plant’s telemetry system. 2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Maintenance
Maintenance
Infrastructure and Sustainable Transportation
Recycled Water Pump Station Maintenance
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 352

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2001044
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 20,000
Water Fund (601) - - - - 20,000 - - - - -
2001044 - Recycled Water Storage Tank
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Recycled Water Storage Expansion Study
Water Fund (601) - - - - 20,000 - - - - -
The recycled water pump station and storage tank were constructed within the Water Resource Recovery Facility (WRRF) in 2003 and needs additional storage capacity. The purpose and need for this project is to begin a study phase of the storage tank expansion. The expansion opportunities may include incorporating stranded assets that could get repurposed into a recycled water tank, or looking for new sites that could incorporate a tank and pipe transmission system that can address pressures and system demands. The study could include preliminary design, land title research to evaluate site constraints, and property acquisitions. 2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Replacement
Maintenance
Infrastructure and Sustainable Transportation
Recycled Water Storage Tank
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 353

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2001048
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 9,230,000
Water Fund (601) - - 9,230,000 - - - - - - -
2001048 - Waterline Replacement: Santa Rosa - Stenner Creek Road to Highland 30-inch Pipeline
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Water Fund (601)
Water Line Replacement: Santa Rosa - Stenner Creek
- - 9,230,000 - - - - - - -
The water transmission pipeline extending from the Water Treatment Plant to Santa Rosa Road is not constructed of standard material types or sizes and if a leak occurs, it would be difficult to repair without putting many residents out of water service, triggering boil water notices across the eastern side of the City. Installed in 1964 using concrete cylinder pipe (CCP) materials, the pipeline does not meet current seismic standards and is needed for replacement within the next 5 years. The existing 27-inch CCP will be replaced with a new 30- inch seismic restrained ductile iron pipe for the distribution of treated water into the Foothill and Downtown services areas. The new alignment will follow Environmental Protection Agency (EPA)-recommended design guidelines for “lifeline services” providing reliable water resources during catastrophic events.
2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Replacement
Maintenance
Infrastructure and Sustainable Transportation
Highland 30-inch Pipeline
Waterline Replacement: Santa Rosa - Stenner Creek Road to Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 354

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2001050
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 400,000 80,000 80,000
Sewer Fund (602) 400,000 - 80,000 - 80,000 - - - - -
2001050 - Sewer Lift Station Maintenance
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Laguna Lift Station Pump Upgrade
Sewer Fund (602) 400,000 - 80,000 - 80,000 - - - - -
Replacements of pumps, valves, fittings, pipe manifolds, flow meters, electrical components, telemetry, and related infrastructure are an ongoing need for reliable wastewater lift stations. The purpose of this project is to categorize costs for major asset replacements needed at lift stations to extend the life of the infrastructure without having to replace the entire facility. The project may include engineering reports, updates to the computer hydraulic model, construction plans for lift station rehabilitation projects, construction management services, coatings, pump maintenance, bypass pumping services, telemetry upgrades, electrical repairs, field testing of infrastructure, and early purchase of materials that are now experiencing long lead times due to delays in supply chains. 2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Maintenance
Maintenance
Infrastructure and Sustainable Transportation
Sewer Lift Station Maintenance
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 355

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2001051
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 300,000 1,300,000
Water Fund (601) - - - 300,000 1,300,000 - - - - -
2001051 - Source Water Strategic Plan
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Source Water Strategic Plan
Water Fund (601) - - - 300,000 1,300,000 - - - - -
With substantial completion of the WRRF’s Phase 1 Upgrade (SLO Water Plus) in 2023 and regulatory requirements for potable re-use, this Source Water Strategic Plan is needed to look at possible roadmaps that can consider the preservation or expansion of the City’s Water Portfolio. Phase 1 replaced WRRF’s aging infrastructure with a new membrane-bioreactor (MBR) and ultraviolet disinfection system, that provides treatment credits that can be expanded into a future beneficial reuse program through direct or indirect potable systems. The strategic plan will study restrictions of potable re-use on surface or groundwater programs, and develop a decision matrix for new projects that may expand the City’s source water portfolio.
2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Maintenance
Community Improvement
Infrastructure and Sustainable Transportation
Source Water Strategic Plan
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 356

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2001052
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 10,000 10,000 90,000 10,000 10,000
Water Fund (601) 10,000 10,000 90,000 10,000 10,000 - - - - - 2001052 - Water Storage Tank Inspection and Cleaning
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Reservoir 1 Floating Cover
Water Fund (601) - - 45,000 - - - - - - -
Reservoir 2 Floating Cover
Water Fund (601) - - 45,000 - - - - - - -
Water Fund (601)
Storage Tanks
10,000 10,000 - 10,000 10,000 - - - - -
Storage capacity of treated drinking water is an essential function of a water distribution system to provide adequate flows and pressures throughout the community. In addition to water storage tanks at the Water Treatment Plant, there are nine water storage tanks located within the City’s distribution system, and a few have been in operation since the early 1940s. Maintenance of water storage facilities is necessary to prolong the useful life of these assets and ensures staff’s ability to operate the water system to State and Federal standards. This project will fund inspection, cleaning, and disinfection cycles needed at water storage tanks. 2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Maintenance
Maintenance
Infrastructure and Sustainable Transportation
Water Storage Tank Inspection and Cleaning
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 357

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2001053
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 50,000 50,000 50,000 50,000
Water Fund (601) - 50,000 50,000 50,000 50,000 - - - - - 2001053 - Waterline Abandonment & Connections
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Waterline Abandonment & Connections
Water Fund (601) - 50,000 50,000 50,000 50,000 - - - - - Replacement of water distribution pipes, mainlines, and related infrastructure is an ongoing program for reliable water distribution and fire protection. This waterline abandonment and connections project will address existing deficiencies of public water mains in a surgical manner by eliminating publicly maintained lines that need to get consolidated into a new pressure zone, or eliminating distribution mains running though backyard easements.
2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Maintenance
Maintenance
Infrastructure and Sustainable Transportation
Waterline Abandonment & Connections
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 358

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2001054
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 12,414,000 2,557,999 2,397,999 2,477,999 2,387,999 Water Fund (601) - - - - - 12,414,000 2,557,999 2,397,999 2,477,999 2,387,999 2001054 - Water - Major Maintenance
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Water - Major Maintenance
Water Fund (601) - - - - - 12,414,000 2,557,999 2,397,999 2,477,999 2,387,999 Major maintenance of water distribution tanks, pumps, electrical systems, telemetry, and related infrastructure is an ongoing program required for a reliable water distribution network. When new developments are completed, the demands for water services are tracked by telemetry systems and used to calibrate the computer models that assess the priority of system maintenance, replacements, and capacity needs. The purpose of this project is to forecast anticipated capital expenditures beyond the 5-year financial plan, and to provide stability during the development of rate setting studies.
2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Maintenance
Maintenance
Infrastructure and Sustainable Transportation
Water - Major Maintenance
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 359

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2001055
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 150,000
Sewer Fund (602) 150,000 - - - - - - - - -
2001055 - WRRF - Building Maintenance
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Lab Admin HVAC
Sewer Fund (602) 150,000 - - - - - - - - -
The WRRF has been in operation since the 1930’s with various levels of upgrades in 1964, 1992, and most recently in 2023. The staff facilities includes: the laboratory, operations building, and the administration building, which have not been upgraded since their original construction. This building maintenance category will provide asset replacement funds to renovate ancillary facilities and extend the life of the facility. Current needs include replacement of the laboratory chemical vent, air circulation fans, HVAC system, and security upgrades to the existing building entrances and doors.
2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Maintenance
Maintenance
Infrastructure and Sustainable Transportation
WRRF - Building Maintenance
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 360

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2001056
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 300,000
Water Fund (601) 300,000 - - - - - - - - -
2001056 - Water Treatment Plant - Building Maintenance
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Roof replacement
Water Fund (601) 300,000 - - - - - - - - -
The Water Treatment Plant has been in operation since the 1940’s with some facilities upgraded in 1963, 1994, and 2008. Additional repairs, maintenance, and energy efficiency projects were completed between 2010 and 2023. The Building Maintenance Project will provide asset replacement funds to repair roof and window leaks experienced in the administration building and replace the carpet on the second floor of the building.
2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Replacement
Maintenance
Infrastructure and Sustainable Transportation
Water Treatment Plant - Building Maintenance
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 361

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2001057
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 2,500,000
Local Revenue Measure (Capital Outlay 401) 2,500,000 - - - - - - - - - 2001057 - ATP - Higuera Complete Street Project
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 ATP - Higuera Complete Street
Local Revenue Measure (Capital Outlay 401) 2,500,000 - - - - - - - - - This project includes complete street and active transportation safety improvements along the Higuera corridor between Marsh Street and Los Osos Valley Road, bikeway and pedestrian enhancements on Madonna Road between Higuera Street and the US 101 SB Ramps, and neighborhood greenway improvements along Bridge Street/Corrida/Woodbridge Street east of Higuera. Improvements include buffered and protected bike lanes, bicycle and pedestrian crossing improvements, hi-visibility crosswalks, ADA curb ramp upgrades, speed reduction elements, and traffic signal upgrades.
2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
New Asset
Transportation
Infrastructure and Sustainable Transportation
ATP - Higuera Complete Street Project
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 362

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2001058
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 200,000 2,500,000
Local Revenue Measure (Capital Outlay 401) - 200,000 - 2,500,000 - - - - - - 2001058 - ATP - Foothill Boulevard Complete Street Project Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 ATP - Foothill Boulevard Complete Street Project (Planning and Design) Local Revenue Measure (Capital Outlay 401) - 200,000 - - - - - - - - ATP - Foothill Boulevard Complete Street Project (Construction) Local Revenue Measure (Capital Outlay 401) - - - 2,500,000 - - - - - - This project includes complete street and active transportation safety improvements along Foothill Boulevard between the western city limits and California Boulevard, consistent with the Active Transportation Plan, Bishop Peak/Pacheco Elementary Safe Routes to School Plan and recommendations from the City's Traffic Safety/Vision Zero planning. Improvements include buffered/protected bike lanes, pedestrian crossing improvements, and speed reduction elements.
2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
New Asset
Transportation
Infrastructure and Sustainable Transportation
ATP - Foothill Boulevard Complete Street Project
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 363

Project Type:

Project Classification:

Major City Goal:
2001062
Project Number
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 700,000 2,450,000
Local Revenue Measure (Capital Outlay 401) - - - - - - - 700,000 - 1,450,000 Orcutt Area Transportation Impact Fee (515) - - - - - - - - - 1,000,000 2001062 - ATP - Railroad Safety Trail (Orcutt to Tiburon) and Bullock Culvert Replacement
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Replacement (Including Orcutt Road Railroad Crossing Upgrades) ATP - Railroad Safety Trail (Orcutt to Tiburon) and Bullock Culvert Local Revenue Measure (Capital Outlay 401) - - - - - - - 700,000 - 1,450,000 Orcutt Area Transportation Impact Fee (515) - - - - - - - - - 1,000,000 New Asset
Transportation
Infrastructure and Sustainable Transportation
Culvert Replacement
ATP - Railroad Safety Trail (Orcutt to Tiburon) and Bullock Project Name
Project Description
This project includes closing the existing gap in the Railroad Safety Trail within the Orcutt Area, extending the shared-use path parallel to Bullock Lane between Tiburon Drive and Orcutt road. The project also includes reconstruction of the existing narrow culvert on Bullock Lane to provide width for two auto lanes, a shared-use path on the west side and continuous sidewalks on the east side, and pedestrian and bicycle safety improvements at the Bullock Lane/Orcutt Road intersection and adjacent at-grade rail crossing. 2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
2025-27 CIP Project Detail Sheets

Financial Plan Page 364

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2001063
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 6,200,000
State or Federal Grant (Capital Outlay 401) - 6,200,000 - - - - - - - - 2001063 - Broadband Plan
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Broadband Construction
State or Federal Grant (Capital Outlay 401) - 6,200,000 - - - - - - - - Information Technology (IT) staff have lead an effort to identify areas in the City underserved by high-speed fiber technology, called Broadband. This Broadband plan allowed the City to apply for and receive State funding to help serve residents lacking high speed internet.

The current project will install underground and overhead fiber line that a private Internet Service Provider can connect to and offer internet.

Future phases of this project will connect City facilities to Broadband and create a redundant City-wide loop. 2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Diversity Equity,
Broadband Plan
and Inclusion
New Asset
Community Improvement
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 365

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2001067
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 20,000 200,000
Local Revenue Measure (Capital Outlay 401) 20,000 200,000 - - - - - - - - 2001067 - Ramona Crossing Improvements
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Ramona Crossing Improvements
Local Revenue Measure (Capital Outlay 401) 20,000 200,000 - - - - - - - - This project will investigate modifications to the crossing on Ramona, with the intent to construct improvements providing additional pedestrian crossing comfort, if feasible within the existing road right-of-way and topographric constraints. 2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
New Asset
Transportation
Infrastructure and Sustainable Transportation
Ramona Crossing Improvements
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 366

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2001070
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 2,800,000
Local Revenue Measure (Capital Outlay 401) - - - - 2,800,000 - - - - - 2001070 - ATP-South Broad Street Corridor
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 ATP-South Broad St Corridor
Local Revenue Measure (Capital Outlay 401) - - - - 2,800,000 - - - - - This project includes complete street and safety improvements along Broad Street between South Street/Santa Barbara Avenue and the southern city limits near Farmhouse Lane. Improvements will be guided by the recommendations of the City's Active Transportation Plan, Traffic Safety/Vision Zero Plan, and 2014 South Broad Street Area Plan. Improvements are expected to include addition of new signalized intersections, streetlighting, potential for buffered/protected bike lanes, landscaped medians, pedestrian crossing improvements and speed reduction elements.
2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
New Asset
Transportation
Infrastructure and Sustainable Transportation
ATP-South Broad Street Corridor
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 367

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2001071
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 100,000 2,183,315 1,985,933 3,501,238 1,856,156
Local Revenue Measure (Capital Outlay 401) 100,000 2,183,315 - 1,985,933 3,501,238 1,856,156 - - - - 2001071 - Storm Response and Recovery
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Response and Recovery)
Laguna Lake Golf Course Repairs Bridge Replacement (Storm Local Revenue Measure (Capital Outlay 401) - 600,000 - - - - - - - - Mitigation Planting (Storm Response and Recovery)
Local Revenue Measure (Capital Outlay 401) 100,000 1,583,315 - - - - - - - - Mission Plaza Creek Sidewalk Repair
Local Revenue Measure (Capital Outlay 401) - - - 870,000 - - - - - - Local Revenue Measure (Capital Outlay 401)
SLO Creek Repairs at Elks Lodge
- - - 200,000 3,501,238 1,856,156 - - - -
Local Revenue Measure (Capital Outlay 401)
Prefumo Creek Grade Structure
- - - 915,933 - - - - - -
The City of SLO was struck with multiple storm events from December 2022 through March 2023, which were a federally declared major disaster. Staff are leading efforts to respond to the infrastructure damage caused by these events and mitigate future damage to the maximum extent feasible.
2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Replacement
Maintenance
Infrastructure and Sustainable Transportation
Storm Response and Recovery
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 368

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2001073
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 35,000 100,000
Sewer Fund (602) 35,000 - - - 100,000 - - - - -
2001073 - Sewer Main Replacement: Oceanaire - Cayucos to Froom Rd Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Oceanaire - Cayucos to Froom Road
Sewer Fund (602) 35,000 - - - - - - - - -
Sewer Fund (602)
enaire - Laguna to Cayucos
- - - - 100,000 - - - - -
During the 2023 and 2024 storms, severe erosion was observed along Perfumo Creek, near Oceanaire Street, and across the alignment of an existing 15-inch sewer main crossing the creek. This project is needed for the replacement of a clay sewer pipe dating back to 1958 that requires high cleaning frequencies along backyard easements, has experienced structural failures due to root intrusions, and has shown high infiltration flows rates during major storm events. The project will include a new creek crossing at a new location not susceptible to creek flows or erosion, and eliminate the need to cross behind residential parcels by constructing the new sewer main along the recently completed road and bridge on Froom Ranch Road south of Oceanaire. 2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Replacement
Maintenance
Infrastructure and Sustainable Transportation
Sewer Main Replacement: Oceanaire - Cayucos to Froom Rd Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 369

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2001075
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 1,500,000
Parking Fund (611) 1,500,000 - - - - - - - - -
2001075 - Parking Structure Safety Element R&D
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Parking Structure Safety Element Construction Fencing
Parking Fund (611) 1,000,000 - - - - - - - - -
Parking Fund (611)
Parking Structure Safety Element Construction Cameras
500,000 - - - - - - - - -
This project includes the installation of security fencing along the top perimeter of the existing parking garages, as well as installation of security cameras throughout the garage structures.
2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Maintenance
Safety
Infrastructure and Sustainable Transportation
Parking Structure Safety Element R&D
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 370

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2001076
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 150,000
Local Revenue Measure (Capital Outlay 401) 150,000 - - - - - - - - - 2001076 - Roadway Barricade Enhancements
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Roadway Barricade Enhancements
Local Revenue Measure (Capital Outlay 401) 150,000 - - - - - - - - - This project will add different barricade and security enhancements throughout the downtown to increase pedestrian safety. 2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
New Asset
Safety
Infrastructure and Sustainable Transportation
Roadway Barricade Enhancements
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 371

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2090742
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 750,000 250,000 525,000 75,000 750,000 1,000,000 1,000,000 Local Revenue Measure (Capital Outlay 401) - 750,000 250,000 525,000 75,000 750,000 - 1,000,000 - 1,000,000 2090742 - Storm Drains
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Drainage Infrastructure Replacement
Local Revenue Measure (Capital Outlay 401) - 750,000 - 450,000 - 750,000 - 1,000,000 - 1,000,000 Local Revenue Measure (Capital Outlay 401)
Storm Drain Long-Range Plan
- - 100,000 - - - - - - -
Local Revenue Measure (Capital Outlay 401)
Trash Capture
- - 150,000 75,000 75,000 - - - - -
This annual asset maintenance project addresses major maintenance and replacement of pipes, culverts, and constructed drainage channels to provide increased flood protection and reduced likelihood of loss of property. Budget is used to address high priority maintenance and repair of pipes and culverts past their design life and at risk of failure, as well as emergency repairs. 2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Maintenance
Maintenance
Infrastructure and Sustainable Transportation
Storm Drains
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 372

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2091219
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 2,000,000
Sewer Fund (602) 2,000,000 - - - - - - - - -
2091219 - WRRF Upgrade
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 WRRF Facility Upgrade Construction
Sewer Fund (602) 2,000,000 - - - - - - - - -
The City’s Water Resource Recovery Facility (WRRF) must be upgraded to comply with stricter discharge limits required by the Central Coast Water Board (CCWB), to increase capacity to serve the City’s population at General Plan build out, and to replace existing aged facilities that have reached the end of their service life. The draft 2015 WRRF Facilities Plan identifies the related upgrades and associated costs. Stricter discharge limits will require new treatment processes as well as changes to current processes at the WRRF to remove nutrients and disinfection by-products prior to releasing environmental water to San Luis Obispo Creek. These limits are required to meet the CCWB’s Basin Plan for inland waterbodies. The Regional Water Quality Control Board adopted a revised National Pollutant Discharge Elimination System Permit with stricter discharge requirements that went into effect December 1, 2014 and requires the City to meet these new standards. The WRRF’s capacity will be increased from its current 5.1 million gallons per day (MGD) to approximately 5.4 MGD to meet the projected growth for the next 20 years while several aged or obsolete processes will require upgrades or removal. This project will also maximize recycled water production and include much needed upgrades to buildings and communication infrastructure. All aspects of the upgrade will consider a triple bottom line approach to ensure the facility becomes a valuable community asset. 2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Replacement
Public Facility
Infrastructure and Sustainable Transportation
WRRF Upgrade
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 373

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2091224
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 400,000
Sewer Fund (602) - - - - 400,000 - - - - -
2091224 - Sewer Lift Station Replacement - Foothill
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Foothill Sewer Lift Station Replacement
Sewer Fund (602) - - - - 400,000 - - - - -
Foothill Lift Station is the oldest in the City’s wastewater collection system and is in a location with limited vehicle access for maintenance.

This station is over 50 years old and is operating beyond its life expectancy. The equipment was originally installed in 1962 to serve the Broad Street and Orcutt area, but was removed and warehoused, then reconfigured and installed in its present location in 1986. The sump pump floor was repaired in 1995 to address external corrosions, and in 2013 the force-main failed and repaired to extend the life of the facility. Replacement of the lift station has been prioritized with the other necessary system components. It is recommended that the station be relocated approximately 500 feet west of its current location to serve future development. Relocating the station would require an addition of 500 feet of gravity, a new force-main, easement acquisition, and installation of modern control panels and telemetry systems. 2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Replacement
Maintenance
Infrastructure and Sustainable Transportation
Sewer Lift Station Replacement - Foothill
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 374

Project Type:

Project Classification:

Major City Goal:
2091252
Project Number
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 7,346,479 3,500,000 30,488,630
Capital Outlay (Infrastructure Invest CIP 405) 4,750,000 3,500,000 11,158,406 - - - - - - - Local Revenue Measure (Capital Outlay 401) 2,267,551 - 3,000,000 - - - - - - - State or Federal Grant (Capital Outlay 401) 2,065,000 - 16,330,224 - - - - - - - Transportation Development Impact Fee (507) (1,736,073) - - - - - - - - - 2091252 - Prado Road Bridge Widening
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Prado Road Bridge & Road Widening
Capital Outlay (Infrastructure Invest CIP 405) 2,750,000 - - - - - - - - - Local Revenue Measure (Capital Outlay 401) 2,267,551 - 3,000,000 - - - - - - - State or Federal Grant (Capital Outlay 401) 2,065,000 - - - - - - - - - Capital Outlay (Infrastructure Invest CIP 405) 2,000,000 3,500,000 11,158,406 - - - - - - - Transportation Development Impact Fee (507) (1,736,073) - - - - - - - - - State or Federal Grant (Capital Outlay 401) - - 16,330,224 - - - - - - - New Asset
Transportation
Infrastructure and Sustainable Transportation
Prado Road Bridge Widening
Project Name
Project Description
The bridge over San Luis Obispo Creek at Prado Road is functionally obsolete, structurally deficient, and can no longer accommodate the City’s multi-modal needs. This project proposes to replace the bridge with a wider one while armoring San Luis Obispo Creek to maximize its hydraulic capacity. Additionally, the intersection at Prado and South Higuera will be widened with protective features for bicycles and pedestrians to operate in conjunction with the widened bridge. All overhead utilities in the area will be undergrounded to provide a more aesthetic and resilient corridor.
2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
2025-27 CIP Project Detail Sheets

Financial Plan Page 375

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2091368
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 500,000 9,250,000
Water Fund (601) - 500,000 - - 9,250,000 - - - - -
2091368 - T-3 Water Storage Tank Replacement - High Pressure Zone Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Reservoir 2 Replacement
Water Fund (601) - 500,000 - - 9,250,000 - - - - -
The City currently operates two potable reservoirs (No.1 and No.2) that were constructed in the late 1960’s. Reservoir #2 is a 7.44 milliongallon (MG) reservoir equipped with new floating covers installed in 2024 to extend the life of the storage tank but is deficient in meeting new building codes. Because the reservoir is one big basin used as a storage tank, the entire water volume must be taken out-of-service during maintenance and inspections. The water distribution hydraulic model identified opportunities to consolidate water distribution zones to improve operations, reduce pumping needs, eliminate tanks and pump stations that would otherwise require replacement, improve fire flow, and improve available fire storage. Replacement of Reservoir #2 with a new High-Pressure Zone (HPZ) water storage tank will include construction of two new 2.5-MG above-ground tanks at the existing reservoir site or equivalent elevation. This will provide critical redundancy and allow for tank maintenance without service interruption. It will also be designed to increase water mixing in the reservoir, which will in turn lessen the overall age of water. Older water age contributes to disinfection by-products, a regulated substance which may be harmful to human health. The study phase will research constructability and identify funding options, and begin property acquisition, preliminary designs, and environmental clearances needed to secure State or Federal funding. 2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Maintenance
Maintenance
Infrastructure and Sustainable Transportation
T-3 Water Storage Tank Replacement - High Pressure Zone Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 376

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2091369
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 3,645,000
Sewer Fund (602) - - - 3,645,000 - - - - - -
2091369 - Sewer Lift Station Replacement - Airport
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Airport Lift Station
Sewer Fund (602) - - - 3,645,000 - - - - - -
The Airport Lift Station is located on Broad Street near the intersection of Fiero Lane. This station is a Smith and Loveless dry/wet well design. It operates with two-240 gpm, 5 horsepower pumps and 840 feet of existing eight-inch force main and was originally constructed by San Luis Obispo County in 1968; the City took over its operation and maintenance in 2000. Due to age, poor structural conditions, and exterior corrosion, the station is operating beyond its life expectancy. The replacement lift station will be sited to accommodate future development of the Airport Area Specific Plan, which will include additional gravity sewers and a new sewer force main. Efforts will be made to look for alternative solutions to eliminate the need for a longer forcemain, which may require additional gravity systems, easement and property acquisitions through the recent Fiero Annexation completed in 2021. 2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Maintenance
Maintenance
Infrastructure and Sustainable Transportation
Sewer Lift Station Replacement - Airport
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 377

Project Type:

Project Classification:

Major City Goal:
2091503
Project Number
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 500,000 3,650,000
Local Revenue Measure (Capital Outlay 401) - 2,250,000 - - - - - - - - San Luis Ranch Transportation Fee (514) 500,000 1,400,000 - - - - - - - - 2091503 - California & Taft Roundabout
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 California & Taft Roundabout
San Luis Ranch Transportation Fee (514) 500,000 1,400,000 - - - - - - - - Local Revenue Measure (Capital Outlay 401) - 2,250,000 - - - - - - - - Asset Replacement
Transportation
Infrastructure and Sustainable Transportation
California & Taft Roundabout
Project Name
Project Description
This project includes installation of a roundabout at the intersection of California & Taft, which improves traffic safety and congestion for all road users. This project also improves pedestrian and bicycle connectivity to the newly-constructed segment of the Railroad Safety Trail on the west side of California Boulevard.
2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
2025-27 CIP Project Detail Sheets

Financial Plan Page 378

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2091506
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 2,250,000
Water Fund (601) 2,250,000 - - - - - - - - -
2091506 - Groundwater Well Development Program
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Construct Extraction and Treatment Wells
Water Fund (601) 2,000,000 - - - - - - - - -
Water Fund (601)
Construct Monitoring Wells
250,000 - - - - - - - - -
The City of San Luis Obispo secured grant funds for cleanup and monitoring efforts of groundwater contamination within the City’s basin caused by tetrachloroethylene contamination, also known as Perchloroethylene (PCE). PCE is a chemical that is typically associated with dry cleaners, textile operations, and metal degreasing activities. Local groundwater quality sampling has documented areas of the San Luis Obispo Valley Groundwater Basin underlying the City that have localized groundwater contamination from PCE. The origin of the contamination remains unknown; however, it is not believed to be from a facility owned by the City of San Luis Obispo. The purpose of this project is extract the groundwater and remediate the basin through a filtering process that meets State and Federal regulations. Use of available groundwater resources would improve resiliency in the City’s water supply portfolio, and based on estimates published in the San Luis Obispo Valley Basin Groundwater Sustainability Plan, the City anticipates about 700-acre-feet of groundwater is available for use each year. The City does not currently use groundwater as a drinking water source but considers groundwater as a valuable water resource that will help the City meet its future water supply and resiliency goals. 2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Maintenance
Maintenance
Infrastructure and Sustainable Transportation
Groundwater Well Development Program
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 379

Project Type:

Project Classification:

Major City Goal:
2091613
Project Number
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total (5,017,551) 2,000,000 2,000,000 122,604,336 3,104,336 4,604,336 4,604,336 4,604,336 4,604,336 Capital Outlay (Infrastructure Invest CIP 405) (2,750,000) - - - - - - - - - Debt Financed (Capital Outlay 401) - - - - 75,000,000 - - - - - Local Revenue Measure (Capital Outlay 401) (2,267,551) - - - 1,604,336 3,104,336 4,604,336 4,604,336 4,604,336 4,604,336 San Luis Ranch Cash (Capital Outlay 401) - - 2,000,000 2,000,000 11,000,000 - - - - - SLOCOG Grant (Capital Outlay 401) - - - - 10,000,000 - - - - - State or Federal Grant (Capital Outlay 401) - - - - 25,000,000 - - - - - 2091613 - Prado Road Interchange
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 San Luis Ranch Cash (Capital Outlay 401)
Construction Phase Prado Interchange
- - 2,000,000 2,000,000 11,000,000 - - - - -
Local Revenue Measure (Capital Outlay 401) (2,267,551) - - - - - - - - - Capital Outlay (Infrastructure Invest CIP 405) (2,750,000) - - - - - - - - - SLOCOG Grant (Capital Outlay 401) - - - - 10,000,000 - - - - - State or Federal Grant (Capital Outlay 401) - - - - 25,000,000 - - - - - Debt Financed (Capital Outlay 401) - - - - 75,000,000 - - - - - Prado Interchange Debt Repayment
Local Revenue Measure (Capital Outlay 401) - - - - 1,604,336 3,104,336 4,604,336 4,604,336 4,604,336 4,604,336 New Asset
Transportation
Infrastructure and Sustainable Transportation
Prado Road Interchange
Project Name
Project Description
The existing interchange at Prado Road is at grade and cannot accommodate development needs within the City and region. Prado road will be extended across Hwy 101, and the North Bound on and off ramps will also be added to this raised interchange. Elks Lane will be rerouted and form a new intersection with the driveway to the City Corporation Yard and Water Resource Recovery Facility. Corporation Yard assets will be re-organized to allow the interchange to be constructed. Prado Road will also be widened from Elks Lane to the Prado Creek Bridge. Grant Funding will be pursued during future design phases to help fund construction costs to the maximum extent possible. 2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
2025-27 CIP Project Detail Sheets

Financial Plan Page 380

Project Type:

Project Classification:

Major City Goal:
2091633
Project Number
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 100,000 1,000,000
Local Revenue Measure (Capital Outlay 401) - 50,000 - 500,000 - - - - - - Sewer Fund (602) - 25,000 - 250,000 - - - - - -
Water Fund (601) - 25,000 - 250,000 - - - - - -
2091633 - Corp Yard Storage Stalls
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Sewer Fund (602)
Corp Yard Material Storage Stalls
- 25,000 - 250,000 - - - - - -
Water Fund (601) - 25,000 - 250,000 - - - - - -
Local Revenue Measure (Capital Outlay 401) - 50,000 - 500,000 - - - - - - Asset Maintenance
Maintenance
Infrastructure and Sustainable Transportation
Corp Yard Storage Stalls
Project Name
Project Description
In order to comply with the City’s Phase II Small MS4 Permit (Section E.11 - Pollution Prevention/Good Housekeeping for Permittee Operations Program), material storage stalls must be covered in order to prevent stormwater transfer of the various materials stored in the stalls such as sand, dirt, street sweeping debris, and cold patch, which can be toxic to aquatic life. This project demos the existing material stalls at the Corp Yard and rebuilds them to provide a vaulted root and backwall with an option to install solar panels on the roofing. 2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
2025-27 CIP Project Detail Sheets

Financial Plan Page 381

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2091634
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 40,000 150,000
Local Revenue Measure (Capital Outlay 401) 40,000 150,000 - - - - - - - - 2091634 - Fire Station 1 Wash Area
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Fire Station 1 Vehicle Wash Area
Local Revenue Measure (Capital Outlay 401) 40,000 150,000 - - - - - - - - This project is driven by stormwater requirements. The infrastructure being installed will support compliance with the needed stormwater compliance standards.
2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Replacement
Maintenance
Infrastructure and Sustainable Transportation
Fire Station 1 Wash Area
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 382

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2091639
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 260,000
Sewer Fund (602) - 260,000 - - - - - - - -
2091639 - Sewer Main Replacement: Chorro – Meinecke to Murray Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Sewer Main Replacement: Chorro – Meinecke to Murray
Sewer Fund (602) - 260,000 - - - - - - - -
The City’s wastewater collection system includes approximately 140 miles of sewer mains. Some pipes are over 100 years old, and are undersized to handle the current flow rates. Maintenance needs increase dramatically as pipelines reach their flow capacities, or when they approach the end of their useful life. Pipelines in the public wastewater collection system are inspected using specialized video equipment that will prioritize periodic cleaning frequencies or recommend a complete replacement. Based on the assessment, this project is needed for the replacement of sewer mains dating back to 1949. The sewer mains run along backyard easements and have shown high infiltration flows rates during major storm events, which continue to exceed the flow capacity of the original design. 2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Maintenance
Maintenance
Infrastructure and Sustainable Transportation
Sewer Main Replacement: Chorro – Meinecke to Murray
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 383

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2091640
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 6,030,000 3,240,000 5,980,000 2,900,000 4,997,840 Sewer Fund (602) - - - - - 6,030,000 3,240,000 5,980,000 2,900,000 4,997,840 2091640 - Sewer - Pipeline Replacement
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Sewer - Pipeline Replacement
Sewer Fund (602) - - - - - 6,030,000 3,240,000 5,980,000 2,900,000 4,997,840 The 2015 Wastewater Infrastructure Renewal Strategy (IRS or masterplan) identified sewer service areas with capacity constraints from stormwater infiltrations into the sewer piping system. Replacement of sewer pipelines, and related infrastructure is an ongoing program required for a reliable wastewater collection system. When new developments are completed, the demands for sewer capacities are tracked by telemetry systems and are used to calibrate the computer models that assess the priority of system maintenance, replacements, and capacity needs. The purpose of this project is to forecast anticipated capital expenditures beyond the financial plan, and to provide stability during the development of rate setting studies.
2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Replacement
Maintenance
Infrastructure and Sustainable Transportation
Sewer - Pipeline Replacement
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 384

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2091734
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 54,800 82,000
Water Fund (601) 54,800 82,000 - - - - - - - -
2091734 - Water Treatment Plant - Water Meter Replacement Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Effluent Meter Replacement
Water Fund (601) - 32,000 - - - - - - - -
Salinas Water Meter
Water Fund (601) 50,000 50,000 - - - - - - - -
Water Fund (601)
Drying Bed Meters
4,800 - - - - - - - - -
This project will install new water meters that track water resources coming in and out of the Water Treatment Plant to improve the accounting of volumes and flows impacting the water distributions system during water loss audits. 2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Asset Replacement
Maintenance
Infrastructure and Sustainable Transportation
Water Treatment Plant - Water Meter Replacement
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 385

Project Type:

Project Classification:

Major City Goal:
2099110
Project Number
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 500,000 824,000 800,000 800,000
Capital Outlay (Capital Outlay 401) - - - - - 24,207 - - - - Local Revenue Measure (Capital Outlay 401) - - - 500,000 - 799,793 - 800,000 - 800,000 2099110 - Laguna Lake Dredging
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Laguna Lake Dredging
Local Revenue Measure (Capital Outlay 401) - - - 500,000 - 799,793 - 800,000 - 800,000 Capital Outlay (Capital Outlay 401) - - - - - 24,207 - - - - Asset Maintenance
Community Improvement
Infrastructure and Sustainable Transportation
Laguna Lake Dredging
Project Name
Project Description
The Laguna Lake Nature Reserve is 344-acres of City owned land. Laguna Lake is a naturally occurring water body although the lake and surrounding watershed have been modified including the rerouting of Prefumo Creek into Laguna Lake in the 1960’s. This rerouting of Prefumo Creek has increased sediment deposits into the lake, and this project will dredge excess sediment from the lake bed. 2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
2025-27 CIP Project Detail Sheets

Financial Plan Page 386

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
2099837
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 Local Revenue Measure (Capital Outlay 401) 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 2099837 - Open Space Acquisition
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Open Space Acquisition
Local Revenue Measure (Capital Outlay 401) 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 The City continues to actively pursue land purchases and conservation easements to enhance the Greenbelt around the City, which protects watersheds and maintains habitat connectivity. Funding for this project is matched by grant funding to implement open space acquisition. 2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
New Asset
Community Improvement
Infrastructure and Sustainable Transportation
Open Space Acquisition
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 387

Project Type:

Project Classification:

Major City Goal:
n/a
Project Number
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 1,009,990 500,000 1,288,622 1,000,000
Capital Outlay (Capital Outlay 401) - - - - - - 485,433 - 1,288,622 1,000,000 Local Revenue Measure (Capital Outlay 401) - - - - - - 524,557 500,000 - - IIF Public Safety Contribution
Project Tasks 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 IIF for Future Public Safety Projects
Capital Outlay (Capital Outlay 401) - - - - - - 485,433 - 1,288,622 1,000,000 Local Revenue Measure (Capital Outlay 401) - - - - - - 524,557 500,000 - - Asset Replacement
Safety
Cultural Vitality, Economic Resilience, and Fiscal Sustainability IIF Public Safety Contribution
Project Name
Project Description
This funding serves as a placeholder to the Infrastructure Investment Fund (IIF) in anticipation of future costs related to the development of a new Public Safety Center and/or proposed Fire Station 5. While the specific scope and timeline of these projects remain uncertain, it is anticipated that significant investment may be required in the coming years for activities such as entitlement work, land acquisition, preliminary design, environmental review, or other pre-construction needs. Allocating funding in the outyears allows the City to remain flexible and responsive as more information becomes available and planning efforts progress. 2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
2025-27 CIP Project Detail Sheets

Financial Plan Page 388

Project Number Project Name
Project Type:

Project Classification:

Major City Goal:
n/a
Total Project Budget 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Total 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 Local Revenue Measure (Capital Outlay 401) 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 Project Tasks
CIP Reserve
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 CIP Reserve
Local Revenue Measure (Capital Outlay 401) 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 In accordance with city policy, city shall maintain 20% of LRM funding in reserve. 2025-2027 Financial Plan Outyears
2025-2027 Financial Plan Outyears
Reserve
Reserve
Cultural Vitality, Economic Resilience, and Fiscal Sustainability CIP Reserve
Project Description
2025-27 CIP Project Detail Sheets

Financial Plan Page 389

REFERENCE MATERIAL
Financial Plan Page 390

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

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

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

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

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

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

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

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REFERENCE MATERIAL
CalPERS Pension Obligations
Background
Along with 3,000 other cities and local agencies, the City of San Luis Obispo contracts with the California Public Employees Retirement System (CalPERS) for its “defined benefit” retirement plan, which covers all regular employees (and temporary employees when required by State law).   In 2012, the City proactively negotiated a lower second tier retirement benefit for employees hired after CalPERS contracts were amended.   In addition, the Public Employee Pension Reform Act (AB 340) became effective in January 2013 and created the third, and even lower, tier retirement benefit.  Under this program, employees who are considered new to the CalPERS retirement program are enrolled under the new law.  Currently, 72% of all participating City employees are enrolled in the lower retirement tiers.

Benefit Tiers
Employee Group Tier 1 Tier 2 Tier 3 ‐ PEPRA
Sworn Public Safety 3% at age 50 Police – 2% at age 50
Fire – 3 % at age 55

2.7 % at age 57
Non‐Sworn Employees 2.7% at age 55 2% at age 60 2% at age 62 CalPERS establishes the annual employer contribution rate that is charged against the City’s payroll costs for eligible employees. The annual contribution rate is comprised of the following components:

1. Normal Cost, which is the amount needed to fund benefits earned by active employees in the upcoming year.

2. Unfunded liability required contribution, which is the amount charged to pay down the pool’s unfunded liability.

Each October, CalPERS provides an actuarial valuation report for each benefit plan that updates certain values to reflect changes in plan activity since the previous valuation.  These changes include but are not limited to:
 The difference between the expected rate of return and the actual rate realized.  Changes in the number of plan members who retire each year.  Changes in the number of new plan members.
 Changes in the annual payroll provided to existing members of the plan.

The actuarial valuations also provide new information on the variables associated with maintaining the plan, such as the amount of the unfunded liability and the annual Employer Contribution rate, which represents the amount that the City is required to pay for every dollar of eligible payroll, beginning the following fiscal year. The information used for this report is taken from the latest valuation report that was issued for the year ending June 30, 2023.

CalPERS is a separate and distinct legal entity from the City and serves as an independent fiduciary in managing the City’s retirement plan assets.

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REFERENCE MATERIAL
CalPERS Employer Contributions
CalPERS Employer Cost Trends
The following summarizes CalPERS employer contributions since 2011‐12.

In July 2024, CalPERS reported a 9.3% net return on investments for the 12‐month period that ended June 30, 2024. Under the current provisions of the CalPERS Asset Liability Management process, returns that exceed the established 6.8% discount rate require the Board of Administration to review whether to lower the rate for future years. Lowering the discount rate would have the immediate effect of a lower funded ratio and higher normal cost for the City. Fortunately, the target rate remains unchanged at 6.8% and the City should benefit from the 9.3% FY 2023‐24 returns with lower unfunded liability contributions in FY 2026‐27.

Unfunded Liabilities
In 2018, City Council adopted a Fiscal Health Response Plan (FHRP) to help address the City’s unfunded liabilities. One component of the FHRP included making additional discretionary payments (ADPs) to CalPERS. To date, the City has made a total of $22.3 million in ADPs to paydown its pension liability.

In March 2023, staff engaged with Foster & Foster, an independent national actuarial consulting firm, to perform a review of the City’s progress in paying down unfunded liabilities. Based on the Foster & Foster actuarial report, the City’s commitment to paying down its pension debt by making additional ADPs has helped to make progress on improving the plan’s overall funded status. Feedback provided by the City’s independent Actuary is that the City is taking appropriate action to make progress in paying down the unfunded pension liabilities. A negative investment return of ‐7.5% in FY 2021‐22 provides a good reminder that the City’s ability to address unfunded liabilities is heavily impacted by factors outside of the City’s control. The primary recommended strategy coming out of the Foster & Foster report is to continue to make required and Additional Discretionary Payments; the City Council adopted Fiscal Policies prioritize ADPs and the City assumes that at least the first $2.0 million of unassigned fund balance will be used to make Additional Discretionary Payments annually.

Employer Retirement Contributions
Fiscal Year Safety Non‐Safety Total
2011‐12 $4,202,200 $4,226,700 $8,428,900
2012‐13 $4,418,518 $4,347,255 $8,765,773
2013‐14 $4,152,103 $4,528,325 $8,680,428
2014‐15 $4,607,331 $5,027,328 $9,634,659
2015‐16 $5,885,722 $5,824,217 $11,709,939
2016‐17 $6,299,915 $6,776,945 $13,076,860
2017‐18 $5,910,345 $6,693,987 $12,604,332
2018‐19 $8,348,780 $9,361,882 $17,710,662
2019‐20 $7,167,638 $7,709,918 $14,877,556
2020‐21 $7,631,620 $8,069,806 $15,701,426
2021‐22 $12,756,585 $15,923,929 $28,680,514
2022‐23 $9,721,641 $11,050,124 $20,771,765
2023‐24 $10,004,005 $11,022,370 $21,026,375
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Current CalPERS Employer Contribution Rates
CalPERS has published the employer rates for 2025‐26 as well as projected rates for the following year, as shown below. These contribution amounts do not reflect any employee cost sharing contributions, and for many plans, the actual cost to the City is lower. While CalPERS has been able to create separate rates for each of the Safety Plan Benefit Tiers, they have chosen to create a blended rate for all three Miscellaneous retirement benefit tiers. The table below is based on the June 30, 2023 valuation date, which is the latest available valuation.

CalPERS Employer Rates
Retirement Tier 2025‐26 2026‐27 Projection
Miscellaneous 9.74% 9.6%
Safety Tier I 29.35% 29.4%
Safety Police Tier II 21.98% 22.0%
Safety Police Tier III 14.96% 15.0%
Safety Fire Tier II 25.02% 25.0%
Safety Fire Tier III 14.96% 15.0%
In addition to the rate for the normal cost, CalPERS requires a fixed annual amount to pay down the unfunded liability. The June 30, 2023 valuation provides the amount for 2025‐26 and a projection for 2026‐27 as shown below.

Unfunded Liability Payments
Employer Payment 2025‐26 2026‐27 Projection
Miscellaneous $8,620,133 $9,486,000
Safety   $7,950,675 $8,702,000
Employee Contribution Rates
Employees are making contributions to CalPERS along with employer contribution rates. Employee contribution rates vary, depending on retirement tier. Beginning in January 2014, the Police Officers’ Association (POA) agreed to contribute an additional 3.0% of pay to help offset the employer’s share of retirement costs. In 2019 and 2020, the POA agreed to phase in an additional 3.0%, bringing their total additional contribution to 6.0%. During this same period, the Police Management, Fire, Unrepresented Management, and Confidential bargaining groups also agreed to contribute an additional 3.0% of pay to help offset the employer’s share of the retirement costs.

Employee Plan Employee Contribution Rate
Miscellaneous 7.0% to 10.5%
Public Safety Sworn   9.0% to 17.5%
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REFERENCE MATERIAL
CalPERS Plan Funding Levels
The following shows CalPERS funding levels for the City’s Miscellaneous Plan and Safety Pool for the actuarial valuations from June 30, 2011 through June 30, 2023. This is the most recent actual information that is available from CalPERS.

Actuarial
Valuation
Date Ending
June 30
Asset Value 1 Entry Age Actuarial
Accrued Liability
Assets Over (Under)
Actuarial Accrued
Liability
Funded
Ratio
Tier I Safety Employee Plan
2011 $    94,068    $    143,482    $    (49,414) 65.6% 2012 $    92,264   $    149,615   $    (57,351) 61.7%
2013 $    100,910    $    154,746    $    (53,836) 65.2% 2014 $    113,884   $    165,802   $    (51,918) 68.7%
2015 $    111,864    $    170,942    $    (59,078) 65.4% 2016 $    109,934   $    178,704   $    (68,770) 61.5%
2017 $    118,917    $    188,177    $    (69,260) 63.2% 2018 $    123,952   $    200,729   $    (76,777) 61.8%
2019 $    127,661    $    205,097    $    (77,436) 62.2% 2020 $    128,700   $    210,170   $    (81,470) 61.2%
2021 $    153,350  $    220,803    $    (67,453) 69.5%
2022 $    142,972 $    229,475 $    (86,503) 62.3%
2023 $    148,020    $    236,750  $    (88,729) 62.5%
Miscellaneous Employee Plan
2011 $    103,392    $    150,651    $    (47,259) 68.6% 2012 $    108,926   $    157,223   $    (48,297) 69.3%
2013 $    101,989    $    163,765    $    (61,776) 62.3% 2014 $    117,762   $    178,138   $    (60,376) 66.1%
2015 $    118,043    $    185,020    $    (66,977) 63.8% 2016 $    116,863   $    196,413   $    (79,550) 59.5%
2017 $    128,186    $    208,025    $    (79,839) 61.6% 2018 $    136,587   $    225,101   $    (88,514) 60.7%
2019 $    144,624    $    234,600    $    (89,976) 61.6% 2020 $    147,848 $    240,866   $    (93,017) 61.4%
2021 $    177,819    $    255,715    $    (77,896) 69.5% 2022 $    168,312 $    267,621 $    (99,309) 62.9%
2023 $    176,888  $    280,827  $     (103,939) 63.0%
All numbers presented in Thousands of Dollars
Beginning in 2006, the Safety Plan is a member of a CalPERS safety pool. 1 Before 2013, CalPERS used the Actuarial Value of Assets. Starting in 2013 Market Value of Assets is used.

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REFERENCE MATERIAL
Fiscal Policies
Section 1. General Revenue Management
A. Diversified and Stable Base.  The City will seek to maintain a diversified and stable revenue base to protect it from short‐term fluctuations in any one revenue source.

B. Long‐Range Focus.  To emphasize and facilitate long‐range financial planning, the City will maintain current projections of revenues for the succeeding five years.

C. Current Revenues for Current Uses.   The City will make all current expenditures with current revenues, avoiding procedures that balance current budgets by postponing needed expenditures, accruing future revenues, or rolling over short‐term debt.

D. Interfund Transfers and Loans.   In order to achieve important public policy goals, the City has established various special revenue, capital project, debt service and enterprise funds to account for revenues whose use should be restricted to certain activities. Accordingly, each fund exists as a separate financing entity from other funds, with its own revenue sources, expenditures and fund equity.

Any transfers between funds for operating purposes are clearly set forth in the Financial Plan, and can only be made by the Finance Director in accordance with the adopted budget.  These operating transfers, under which financial resources are transferred from one fund to another, are distinctly different from interfund borrowings, which are usually made for temporary cash flow reasons, and are not intended to result in a transfer of financial resources by the end of the fiscal year.

In summary, interfund transfers result in a change in fund equity; interfund borrowings do not, as the intent is to repay the loan in the near term.

From time to time, interfund borrowings may be appropriate; however, these are subject to the following criteria in ensuring that the fiduciary purpose of the fund is met:

1. The Finance Director is authorized to approve temporary interfund borrowings for cash flow purposes whenever the cash shortfall is expected to be resolved within 45 days.   The most common use of interfund borrowing under this circumstance is for grant programs like the Community Development Block Grant, where costs are incurred before drawdowns are initiated and received.  However, receipt of funds is typically received shortly after the request for funds has been made.

2. Any other interfund borrowings for cash flow or other purposes require case‐by‐case approval by the Council.

3. Any transfers between funds where reimbursement is not expected within one fiscal year shall not be recorded as interfund borrowings; they shall be recorded as interfund operating transfers that affect equity by moving financial resources from one fund to another.

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REFERENCE MATERIAL
Section 2. User Fee Cost Recovery Goals
A. Ongoing Review
Fees will be reviewed and updated on an ongoing basis to ensure that they keep pace with changes in the cost‐of‐living as well as changes in methods or levels of service delivery.

In implementing this goal, a comprehensive analysis of City costs and fees should be made at least every three years.  In the interim, fees will be adjusted by annual changes in the Consumer Price Index.  Fees may be adjusted during this interim period based on supplemental analysis whenever there have been significant changes in the method, level or cost of service delivery.

B. User Fee Cost Recovery Levels
In setting user fees and cost recovery levels, the following factors will be considered:

1. Community‐Wide Versus Special Benefit.  The level of user fee cost recovery should consider the community‐wide versus special service nature of the program or activity.   The use of general‐purpose revenues is appropriate for community‐wide services, while user fees are appropriate for services that are of special benefit to easily identified individuals or groups.

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

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

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

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

C. Factors Favoring Low‐Cost Recovery Levels
Very low‐cost recovery levels are appropriate under the following circumstances:

1. There is no intended relationship between the amount paid and the benefit received.  Almost all "social service" programs fall into this category as it is expected that one group will subsidize another.

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2. Collecting fees is not cost‐effective or will significantly impact the efficient delivery of the service.

3. There is no intent to limit the use of (or entitlement to) the service.  Again, most "social service" programs fit into this category as well as many public safety (police and fire) emergency response services and the ability to appeal planning decisions.   Historically, access to neighborhood and community parks would also fit into this category.

4. The service is non‐recurring, generally delivered on a "peak demand" or emergency basis, cannot reasonably be planned for on an individual basis, and is not readily available from a private sector source.  Many public safety services also fall into this category.

5. Collecting fees would discourage compliance with regulatory requirements and adherence is primarily self‐identified, and as such, failure to comply would not be readily detected by the City.  Many small‐scale licenses and permits might fall into this category.

D. Factors Favoring High Cost Recovery Levels
The use of service charges as a major source of funding service levels is especially appropriate under the following circumstances:

1. The service is similar to services provided through the private sector.

2. Other private or public sector alternatives could or do exist for the delivery of the service.

3. For equity or demand management purposes, it is intended that there be a direct relationship between the amount paid and the level and cost of the service received.

4. The use of the service is specifically discouraged.   Police responses to disturbances or false alarms might fall into this category.

5. The service is regulatory in nature and voluntary compliance is not expected to be the primary method of detecting failure to meet regulatory requirements.  Building permit, plan checks, and subdivision review fees for large projects would fall into this category.

E. General Concepts Regarding the Use of Service Charges The following general concepts will be used in developing and implementing service charges:

1. Revenues should not exceed the reasonable cost of providing the service.

2. Cost recovery goals should be based on the total cost of delivering the service, including direct costs, departmental administration costs and organization‐wide support costs such as accounting, personnel, information technology, legal services, fleet maintenance and insurance.

3. The method of assessing and collecting fees should be as simple as possible in order to reduce the administrative cost of collection.

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4. Rate structures should be sensitive to the "market" for similar services as well as to smaller, infrequent users of the service.

5. A unified approach should be used in determining cost recovery levels for various programs based on the factors discussed above.

F. Low Cost‐Recovery Services
Based on the criteria discussed above, the following types of services should have very low‐cost recovery goals.  In selected circumstances, there may be specific activities within the broad scope of services provided that should have user charges associated with them.   However, the primary source of funding for the operation as a whole should be general‐purpose revenues, not user fees.

1. Delivering public safety emergency response services such as police patrol services and fire suppression.

2. Maintaining and developing public facilities that are provided on a uniform, community‐wide basis such as streets, parks and general‐purpose buildings.

3. Providing social service programs and economic development activities.

4. Appealing planning decisions.  Appeal fees are charged based on a tiered system and fees for all tiers should be at 15% cost recovery for both applicants and non‐applicants, based on the cost of responding to appeals initiated by the applicant.

G. Recreation Programs
The following cost recovery policies apply to the City's recreation programs:

1. Cost recovery for activities directed to adults should be relatively high.

2. Cost recovery for activities directed to youth and seniors should be relatively low.   In those circumstances where services are similar to those provided in the private sector, cost recovery levels should be higher.

Although ability to pay may not be a concern for all youth and senior participants, these are desired program activities, and the cost of determining need may be greater than the cost of providing a uniform service fee structure to all participants.  Further, there is a community‐wide benefit in encouraging high‐levels of participation in youth and senior recreation activities regardless of financial status.

3. Fees for golf activities should be comparable to other communities.

4. Cost recovery goals for recreation activities are set as follows:

High‐Range Cost Recovery Activities ‐ (60% to 100%)
a. Adult athletics
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b. Banner permit applications
c. Major commercial film permit applications
Mid‐Range Cost Recovery Activities ‐ (30% to 60%)
d. Triathlon
e. Summer and Spring Break Camps
f. Junior Ranger camp
g. Childcare services
h. Classes
Low‐Range Cost Recovery Activities‐ (0 to 30%)
i. Aquatics
j. Community gardens
k. Minor commercial film permit applications
l. Skate park
m. Parks and Recreation sponsored events (except for Triathlon) n. Youth sports
o. Teen services
p. Senior services

5. For cost recovery activities of less than 100%, there should be a differential in rates between residents and non‐residents.  However, the Director of Parks and Recreation is authorized to reduce or eliminate non‐resident fee differentials when it can be demonstrated that:
a. The fee is reducing attendance.
b. There are no appreciable expenditure savings from the reduced attendance.

6. Charges will be assessed for use of rooms, pools, gymnasiums, ball fields, special‐use areas, and recreation equipment for activities not sponsored or co‐sponsored by the City.   Such charges should be based upon comparability with other communities.  However, the Director of Parks and Recreation is authorized to charge fees that are closer to full cost recovery for facilities that are heavily used at peak times and include a majority of non‐resident users.

7. A vendor charge of at least 10 percent of gross income will be assessed from individuals or organizations using City facilities for moneymaking activities.

8. The Director of Parks and Recreation is authorized to offer reduced fees such as introductory rates, family discounts and coupon discounts on a pilot basis (not to exceed 18 months) to promote new recreation programs or revive existing ones.

9. The Parks and Recreation Department will consider waiving fees only when the City Manager determines in writing that an undue hardship exists.

H. Development Review Programs
The following cost recovery policies apply to the development review programs:

1. Services provided under this category include:

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a. Planning (planned development permits, tentative tract and parcel maps, re‐zonings, general plan amendments, variances, use permits).
b. Building and safety (building permits, structural plan checks, inspections). c. Engineering (public improvement plan checks, inspections, subdivision requirements, encroachments).
d. Fire plan check.

2. Cost recovery for these services should generally be very high.  In most instances, the City's cost recovery goal should be 100%.

3. However, in charging high cost recovery levels, the City needs to clearly establish and articulate standards for its performance in reviewing developer applications to ensure that there is “value for cost.”

4. Building Permit Plan Check Services – The City of San Luis Obispo offers building permit plan check services through consultants at a set price, not to exceed 65% of the City’s fee for the service. Building Permit Plan Check Services are offered by the City on a 100% cost‐recovery basis, and the service is provided after the fee is paid in full. As a result, the Finance Director is authorized to make appropriations from the related revenue account to cover the cost of the services provided.

I. Services Supporting Sustainability Goals of the City Fees for services that support the sustainability goals of the City should be set at 50% cost recovery.

These include:

1. Building permits for:
a. Electric Car Charging System
b. Graywater System
c. Graywater/Rainwater Harvesting System
d. Heat Pump
e. Insulation/Energy Update
f. Photovoltaic Systems
g. Photovoltaic Unit Installation – Residential
h. Residential Photovoltaic System
i. Solar/PV System ‐ Commercial BLDG
j. Solar/PV System – Multifamily BLDG
k. Solar Water System Fixtures ‐ BLDG
l. Doors/Windows
m. Electric Service Upgrades
n. New/Altered Circuits
o. Window Retrofit

2. Pedicab Fee and Pedicab Renewal Fee
J. Concealed Carry Weapon Permit fee
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The Concealed Carry Weapon Permit fee should be based upon comparability with other communities.

K. Comparability with Other Communities
In setting user fees, the City will consider fees charged by other agencies in accordance with the following criteria:

1. Surveying the comparability of the City's fees to other communities provides useful background information in setting fees for several reasons:
a. They reflect the "market" for these fees and can assist in assessing the reasonableness of San Luis Obispo’s fees.
b. If prudently analyzed, they can serve as a benchmark for how cost‐effectively San Luis Obispo provides its services.

2. However, fee surveys should never be the sole or primary criteria in setting City fees as there are many factors that affect how and why other communities have set their fees at their levels.

For example:
a. What level of cost recovery is their fee intended to achieve compared with our cost recovery objectives?
b. What costs have been considered in computing the fees? c. When was the last time that their fees were comprehensively evaluated? d. What level of service do they provide compared with our service or performance standards? e. Is their rate structure significantly different than ours and what is it intended to achieve?

3. These can be very difficult questions to address in fairly evaluating fees among different communities.  As such, the comparability of our fees to other communities should be one factor among many that is considered in setting City fees.

Section 3. Enterprise Fund Fees and Rates
A. Water, Sewer, and Parking.   The City will set fees and rates at levels which fully cover the total direct and indirect costs—including operations, capital outlay, and debt service—of the following enterprise programs:  water, sewer, and parking. For water and sewer, the rate setting process will be in accordance with Proposition 218 and its notification requirements.

B. Transit.   Based on targets set under the Transportation Development Act, the City will strive to cover at least twenty percent of transit operating costs with fare revenues.

C. Ongoing Rate Review.   The City will review and adjust enterprise fees and rate structures as required to ensure that they remain appropriate and equitable.

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D. Cost of Service Fees. The City will treat the water and sewer funds in the same manner as if they were privately owned and operated. This means assessing reasonable cost of service fees in fully recovering service costs.

The purpose of the cost of service fee is reasonable cost recovery for the use of the City’s services such as street rights‐of‐way and public safety. The appropriateness of charging the water and sewer fund a reasonable cost of service fee for the use of the City streets is further supported by the results of studies from Arizona, California, Ohio, and Vermont which concluded that the leading cause of street resurfacing and reconstruction is street cuts and trenching for Utilities.

Section 4. Revenue Distribution
The Council recognizes that generally accepted accounting principles for state and local governments discourage the “earmarking” of General Fund revenues, and accordingly, the practice of designating General Fund revenues for specific programs should be minimized in the City's management of its fiscal affairs.   Approval of the following revenue distribution policies does not prevent the Council from directing General Fund resources to other functions and programs as necessary.

A. Property Taxes.  With the passage of Proposition 13 on June 6, 1978, California cities no longer can set their own property tax rates.  In addition to limiting annual increases in market value, placing a ceiling on voter‐approved indebtedness, and redefining assessed valuations, Proposition 13 established a maximum county‐wide levy for general revenue purposes of 1% of market value.

Under subsequent state legislation, which adopted formulas for the distribution of this countywide levy, the City now receives a percentage of total property tax revenues collected countywide as determined by the State and administered by the County Auditor‐Controller. The City receives

14.9% of each dollar collected in property tax after allocations to school districts.

Accordingly, while property revenues are often thought of as local revenue sources, in essence they are State revenue sources, since the State controls their use and allocation.

With the adoption of a Charter revision in November 1996, which removed provisions that were in conflict with Proposition 13 relating to the setting of property tax revenues between various funds, all property tax revenues are now accounted for in the General Fund.

B. Gasoline Tax Subventions.  All gasoline tax revenues (which are restricted by the State for street‐ related purposes) will be used for maintenance activities.  Since the City's total expenditures for gas tax eligible programs and projects are much greater than this revenue source, operating transfers will be made from the gas tax fund to the General Fund for this purpose.  This approach significantly reduces the accounting efforts required to meet State reporting requirements.

C. Transportation Development Act (TDA) Revenues.  All TDA revenues will be allocated to alternative transportation programs, including regional and municipal transit systems, bikeway improvements, and other programs or projects designed to reduce automobile usage.  Because TDA revenues will not be allocated for street purposes, it is expected that alternative transportation programs (in conjunction with other state or federal grants for this purpose) will be self‐supporting from TDA revenues.

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D. Parking Fines.   All parking fine revenues will be allocated to the Parking Fund, except for those collected by Police staff (who are funded by the General Fund) in implementing neighborhood wellness programs.

Section 5. Investments
Link to the City’s Investment Policy & Management Plan
Policy Statement
The City of San Luis Obispo shall invest public funds in such a manner as to comply with state and local laws; ensure prudent money management; provide for daily cash flow requirements; and meet the objectives of the Investment Policy & Management Plan in priority order of Safety, Liquidity, and Return on Investment.

The purpose of the Investment Policy and Management Plan is to establish policies, practices, and procedures to be used in administering the City's investment portfolio in accordance with the City's Statement of Investment policy.

Primary Investment Objective
The City's primary investment objective is to achieve a reasonable rate of return on public funds while minimizing the potential for capital losses arising from market changes or issuer default. Although the generation of revenues through interest earnings on investments is an appropriate City goal, the primary consideration in the investment of City funds is capital preservation in the overall portfolio. As such, the City's yield objective is to achieve a reasonable rate of return on City investments rather than the maximum generation of income, which could expose the City to unacceptable levels of risk.

In determining individual investment placements, the following factors shall be considered in priority order: 1) Safety   2) Liquidity   3) Yield – (Return on Investment). The City will also take into account Environmental, Social, and Governance (ESG) objectives, the City’s Socially Responsible Investment Policy, and other qualitative considerations as directed by Council and required by the Investment Policy & Management Plan.

Section 6. Appropriations Limitation
A. The Council will annually adopt a resolution establishing the City's appropriations limit calculated in accordance with Article XIII‐B of the Constitution of the State of California, Section 7900 of the State of California Government Code, and any other voter approved amendments or state legislation that affect the City's appropriations limit.

B. The supporting documentation used in calculating the City's appropriations limit and projected appropriations subject to the limit will be available for public and Council review at least 10 days before Council consideration of a resolution to adopt an appropriations limit.   The Council will generally consider this resolution in connection with final approval of the budget.

C. The City will strive to develop revenue sources, both new and existing, which are considered non‐tax proceeds in calculating its appropriations subject to limitation.

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D. The City will annually review user fees and charges and report to the Council the amount of program subsidy, if any, that is being provided by the General or Enterprise Funds.

E. The City will actively support legislation or initiatives sponsored or approved by League of California Cities which would modify Article XIII‐B of the Constitution in a manner which would allow the City to retain projected tax revenues resulting from growth in the local economy for use as determined by the Council.

F. The City will seek voter approval to amend its appropriation limit at such time that tax proceeds are in excess of allowable limits.

Section 7. Fund Balance and Reserves
Link to the City’s Fund Balance & Reserve Policy
This policy establishes guidelines and procedures for allocating and reporting the City’s fund balances in the financial statements in accordance with Governmental Accounting Standards Board (GASB) Statement No. 54 and as committed by the City Council effective beginning fiscal year ending June 30, 2021.

Additionally, the policy establishes the City’s reserve levels to address protection from risk and unexpected situation that require financial resources. The City of San Luis Obispo faces risks such as revenue shortfalls during recessions and losses from extreme events, like earthquakes, wildland fires, flooding, and other natural disasters. Prudent reserve levels help make sure that the City of San Luis Obispo can respond quickly and decisively to those events. Reserves also support vital public services during revenue declines. As such, the City’s reserve policy describes how much the City will retain in the reserves and stipulates activation and acceptable uses of the reserves.

Since reserve levels need to be considered when establishing fund balances, both are addressed within this policy.

Section 8. CalPERS & Unfunded Liabilities
With the 2018‐19 Financial Plan Supplement, the City adopted its Fiscal Health Response Plan (FHRP); a three‐year plan to address the City’s escalating unfunded pension liability stemming from the CalPERS’ changes under the Public Employees’ Pension Reform Act (PEPRA). PEPRA prescribe that a member agency’s pension liability had to be paid down over a 30‐year period which triggered annually escalating contributions through 2045.

The FHRP therefore targeted a realignment of revenues and expenditures to allow for additional payments to CalPERS, negotiated additional contributions toward pension payments for employee groups, and prioritized the use of unassigned fund balance once the City’s Financial Statements had been audited and accepted by the City Council. The goal of this realignment was the payment of the unfunded liability (UFL) over a reduced timeline therefore securing pensions for City employees and saving the City considerable interest payments.

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Given the long‐term ramifications of the deliverables put in motion through the FHRP, this section addresses the City’s long‐term commitment to payment of the UFL, annual additional discretionary payments (ADPs), and the needed prioritization to hold the shortened timeline.

1. The City sets the following prioritization of unassigned General Fund balance:
a. Additional discretionary payments to CalPERS
b. Infrastructure investments
c. Emerging Health and Safety needs of the community

2. The City commits to ADPs to CalPERS and adding an annual inflator equal to increases in payroll whenever CalPERS reaches its discount rate or larger rates of return based on what is presented in the latest five‐year forecast.

3. Whenever CalPERS does not reach its adopted discount rate, the City commits to first use any unassigned fund balance to counteract the investment loss CalPERS experienced. It will add the loss to the committed ADP as outlined above to safeguard the investment already made toward the early repayment of the UFL.

Section 9. Capital Improvement Program Management
A. CIP Projects: $25,000 or More.   Construction projects which cost $25,000 or more will be included in the CIP and are accounted for in the Capital Outlay Fund.  Minor capital outlays of less than $25,000 will be included with the operating program budgets.

B. CIP Purpose.   The purpose of the CIP is to systematically plan, schedule, and finance capital projects to ensure cost‐effectiveness as well as conformance with established policies.  The CIP is a five‐year plan organized by the same functional categories as the City’s operating programs.

The CIP reflects a balance between capital replacement projects‐ those that repair, replace, or enhance existing facilities, equipment or infrastructure, and capital facility projects‐ those that significantly expand or add to the City’s existing fixed assets.

C. CIP Project Type.  Projects are categorized by type, including:

1. Asset Maintenance – Reoccurring and annual needs that maintain existing assets.

2. Asset Replacement – Periodically reoccurring and/or annual needs that replace existing assets with similar assets.

3. New Asset – Periodic needs to expand the number of assets that serve the community.

Asset maintenance projects and costs should be considered before recommending funding for projects to replace existing assets or construct new assets.  Asset Maintenance projects are not ranked by the CIP Review Committee.

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responsible for ensuring that required phases are completed on schedule, authorizing all project expenditures, ensuring that all regulations and laws are observed, regularly communicating with project proponents and other stakeholders, and reporting on project status.   Project management will primarily be performed by staff in the Public Works Department, but staff from other departments may also manage projects.

E. CIP Review Committee.  The CIP Review Committee provides governance of the CIP by evaluating and prioritizing capital projects based upon an established set of criteria to ensure alignment with Major City Goals, the General Plan, strategic growth objectives and needs for services provided within the City.  The Assistant City Manager serves as Chair of the Committee and the Director of Public Works is Vice Chair; other members include: Deputy City Manager, Director of Community Development, Director of Finance, Director of Parks and Recreation, Director of Utilities, and a public safety department head (rotating between the Fire Chief and Police Chief).   The CIP Administrative Manager, City Engineer, Principal Budget Analyst, DEI Manager, and Sustainability Manager provide staff support to the Committee.  The Committee is responsible for:

1. Assessing the City’s fiscal and staff capacity to deliver projects so that the recommended CIP represents what can realistically be accomplished; and

2. Recommending to the City Manager the projects and associated budgets that should be included in the biennial financial plan; and

3. Considering requests for new projects that may be requested outside of financial plan development to address emergent needs; and

4. Evaluating the re‐prioritization of projects as needs and conditions change in order to ensure consistency with project evaluation criteria, ability to deliver projects, and City priorities.

F. Project Request Forms.   The CIP Review Committee requires that departments submitting a request for an Asset Replacement or New Asset project to be funded in the Five‐Year CIP cycle submit a Project Request Form (PRF) to formally document the project request.   The PRF is intended to ensure that the Committee has necessary information to evaluate and prioritize projects for funding.  In addition to completion of the PRF, the Committee may also request a presentation from the requesting department to gather additional information.  The content of the PRF shall include, but not be limited to the following:

1. Proposed project title

2. Proponent (Client) department

3. Proposed managing department or division

4. Project function (Major City Goal Alignment)

5. Project type

6. City priority alignment

7. Project scope

1. Purpose and Need (including approved planning documents or mandates)

2. Consistency with Climate Action Plan

3. Consistency with DEI
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4. Impact to Operations

8. Proposed project schedule/delivery

9. Estimated project budget and funding source(s)
G. Creation of Projects.  New projects shall only be considered during development of the biennial financial plan.  Staff requests for projects outside of the financial plan development process will be considered only if they are intended to address an emergency need.  Staff may create new projects as directed by the City Council at any point.

H. CIP Phases.  The CIP will emphasize project planning, with projects progressing through at least two and up to ten of the following phases:

1. Designate.  Appropriates funds based on projects designated for funding by the Council through adoption of the Financial Plan.

2. Study.   Concept, site selection, feasibility analysis, schematic design, environmental determination, property appraisals, scheduling, grant application, grant approval, specification preparation for equipment purchases.

3. Environmental Review.  EIR preparation, other environmental studies.

4. Real Property Acquisitions.  Property acquisition for projects, if necessary.

5. Design.   Final design, plan and specification preparation and construction cost estimation.

6. Construction.  Construction contracts.

7. Construction Management and Special Inspections. Contract project management and inspection, soils and material tests, other support services during construction.

8. Equipment Acquisitions. Vehicles, heavy machinery, computers, office furnishings, other equipment items acquired and installed independently from construction contracts.

9. Debt Service. Installment payments of principal and interest for completed projects funded through debt financings. Expenditures for this project phase are included in the Debt Service section of the Financial Plan. Generally, it will become more difficult for a project to move from one phase to the next.  As such, more projects will be studied than will be designed, and more projects will be designed than will be constructed or purchased during the term of the CIP.

I. CIP Appropriation.  The City’s annual CIP appropriation is based on the projects designated by the Council through adoption of the Financial Plan.  Upon adoption of the Financial Plan, the Capital Improvement Program (CIP) is concurrently approved, authorizing appropriations for projects with allocated funding in the designated fiscal year. Appropriations are processed at the start of the fiscal year, ensuring that funds are available in the project account within the City’s financial management system.

If project costs at the time of bid award are less than the budgeted amount, the balance will be reappropriated to the CIP reserve,  or be allocated to another project.  If project costs at the time of bid award are greater than budget amounts, five basic options are available:

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1. Eliminate the project.

2. Defer the project for consideration to the next Financial Plan period.

3. Rescope or change the phasing of the project to meet the existing budget.

4. Transfer funding from another specified, lower priority project.

5. Appropriate additional resources as necessary from fund balance.

6. Appropriate funding from the Capital Reserve.

J. CIP Project Lapse.   Appropriations for CIP projects lapse three years after budget adoption.

Projects which lapse from lack of project account appropriations may be resubmitted for inclusion in a subsequent CIP.  Project accounts, which have been appropriated, will not lapse until completion of the project phase.

K. CIP Reporting.  Staff shall publish reports on the progress of delivering the Capital Improvement Plan at least quarterly, as part of Quarterly Budget Reports provided to the City Council.  These reports shall include a summary of project budgets, a status update on projects in progress, and a listing of projects completed within the quarter.

L. Public Art.  CIP projects will be evaluated during the budget process and prior to each phase for conformance with the City's public art policy, which generally requires that 1% of eligible project construction costs be set aside for public art.  Excluded from this requirement are underground projects, utility infrastructure projects, funding from outside agencies, and costs other than construction such as study, environmental review, design, site preparation, land acquisition and equipment purchases. It is generally preferred that public art be incorporated directly into the project, but this is not practical or desirable for all projects; in this case, an in‐lieu contribution to public art will be made.   To ensure that funds are adequately budgeted for this purpose regardless of whether public art will be directly incorporated into the project, funds for public art will be identified separately in the CIP.

M. General Plan Consistency Review.   The Planning Commission will review the Preliminary CIP for consistency with the General Plan and provide its findings to the Council prior to adoption.

N. Climate Action Plan Implementation.   Council adopted Resolution No.   11159 (2020 Series) establishes a goal of community‐wide carbon neutrality by 2035 and municipal operations carbon neutrality by 2030. The City’s Capital Improvement Program is a critical implementation tool, and every CIP will be evaluated for alignment with these climate goals. Examples of ways projects or project components can align the with goals include (but are not limited to):

1. Elimination or reduction of vehicle miles traveled (e.g., active transportation and transit improvements),

2. Elimination or reduction of fossil fueled appliances, vehicles, and equipment,

3. Reduced energy consumption (e.g., efficient mechanical equipment, efficient lighting, etc.)

4. Carbon storage through tree planting or landscape management, and

5. Solid waste/ green waste diversion
O. Diversity, Equity and Inclusion.  In 2020 the City Council declared diversity, equity, and inclusion (DEI) as integral aspects of their City Mission and Meta Goal, ensuring that through policies, Financial Plan Page 409

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programs, and projects, San Luis Obispo will foster a community that is welcoming, equitable, safe and inclusive for all. The City’s Capital Improvement Program is a critical component of achieving these goals by ensuring that capital projects are designed to be accessible, inclusive, and safe for diverse populations.  Capital Improvement Projects can advance diversity, equity, through project design and accessibility, diverse representation in art components of projects, ensuring there are programs to subsize costs for low‐income communities to access the project, providing opportunities to diverse populations and stakeholders for community input, including DEI as a priority in RFPs or project scope, and ensuring the project does not disproportionately burden one community over another.

Section 10. Capital Financing & Debt Management
Link to the City’s Capital Financing & Debt Management Policy Policy Statement
The City of San Luis Obispo (City) will maintain, at all times, debt management policies that are fiscally prudent, consistent with State and Federal law, and reflective of the most opportune financing strategies to deliver on the needs and goals of the community and the City organization. The Debt Management Policy establishes objectives, parameters, and guidelines for responsibly issuing and administering the City’s debt. Prudent management of the City’s debt program is necessary to achieve cost‐effective access to the capital markets and demonstrate a commitment to long‐term financial planning and sustainability.

Debt Management Objectives
The policy sets forth key objectives for the City in issuing and administering the City’s debt, which are to:
 Maintain the City’s sound financial position.
 Minimize debt service and issuance cost.
 Maintain access to cost‐effective borrowing.
 Achieve and maintain highest reasonable credit rating.  Ensure full and timely repayment of debt.
 Maintain full and complete financial disclosure and reporting including voluntary disclosures.  Ensure compliance with State and Federal laws and regulations.

Scope
This policy establishes the framework for when the City of San Luis Obispo should consider issuing debt and the overall acceptable debt burden. Long‐term debt is an effective way to finance capital improvements by matching the term of the debt with the useful life of the asset being financed.

Properly managed debt provides flexibility in current and future operating budgets and provides the City with the long‐term assets required to deliver services, programs, and public infrastructure to the community. The City recognizes that effective debt management practices require a comprehensive Debt Management Policy that details the use of capital debt to support the capital infrastructure in the community while maintaining a stable and prudent fiscal outlook.

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Debt Capacity

1. General Purpose Debt Capacity. The City will carefully monitor its levels of general purpose debt.

Because the City’s general‐purpose debt capacity is limited, it is important that the City only use general purpose debt financing for high‐priority projects when it cannot reasonably use other financing methods for two key reasons:
a. Funds borrowed for a project today are not available to fund other projects tomorrow. b. Funds committed for debt repayment today are not available to fund operations in the future.

In evaluating debt capacity, general‐purpose annual debt service payments should generally not exceed 10% of General Fund revenues; and in no case should they exceed 15%. Further, direct debt will not exceed 2% of assessed valuation; and no more than 60% of capital improvement outlays will be funded from long‐term financings.

2. Enterprise Fund Debt Capacity. The City will set enterprise fund rates at levels needed to fully cover debt service requirements as well as operations, maintenance, administration and capital improvement costs. The ability to afford new debt for enterprise operations will be evaluated as an integral part of the City’s rate review and setting process.

Section 11. Human Resource Management
A. Regular Staffing

1. The budget will fully appropriate the resources needed for authorized regular staffing.

2. Regular employees will be the core work force and the preferred means of staffing ongoing, year‐round program activities that should be performed by regular full‐  or part‐time City employees rather than limited‐term employees or independent contractors. The City will strive to provide competitive compensation and benefit schedules for its authorized regular work force. Each regular employee will:
a. Fill an authorized regular position.
b. Be assigned to an appropriate bargaining unit, unless designated as an unrepresented management or confidential classification.
c. Receive salary and benefits consistent with labor agreements or other compensation plans.

3. To manage the growth of the regular workforce and overall staffing costs, the City will follow these procedures:
a. The Council will authorize and approve funding to increase headcount for regular full‐time equivalent positions.
b. The Human Resources Department will coordinate and approve the hiring of all regular and temporary staff.
c. All requests for additional regular positions will include evaluations of:

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 The necessity, term, and expected results of the proposed activity.  Staffing and materials costs including salary, benefits, equipment, uniforms, vehicles, clerical support, and facilities.
 The ability and cost of private industry to provide the proposed service.  Additional revenues or cost savings, which may be realized.

4. Periodically, and before any request for additional regular positions, programs will be evaluated to determine if they can be accomplished with fewer regular employees. (See Productivity Review Policy)

5. Total expenditures for regular, temporary, and contract staff hired to provide operating and maintenance services will be limited to approved budgets for regular, temporary, and contract salaries and benefits.

B. Temporary Staff

1. The hiring of temporary staff will not be used as an incremental method for expanding the City's regular work force.

2. Temporary staff include all employees other than regular employees, elected officials, and volunteers. Temporary staff include seasonal or occasional employees, employees with irregular schedules, limited benefit employees limited‐term contract employees, CalPERS retired annuitants, and leased employees. Temporary staff may work on a full‐ or part‐time basis and will generally augment regular City staffing. Temporary staff may be used as extra‐help during peak workloads, coverage during extended absences of regular employees, seasonal workforce, a means to assess ongoing staffing needs, or as the staffing method for program delivery that is most effectively staffed using part‐time hours to ensure adequate coverage.

3. The City Manager and Department Heads will encourage the use of temporary staff rather than regular employees to meet peak workload requirements, fill interim vacancies, and accomplish tasks where less than full‐time, year‐round staffing is required.

4. Under this guideline, temporary staff hours will generally not exceed 1,000 hours annually, or about 50% of a fulltime position. There may be limited circumstances where the use of temporary staff on an ongoing basis in excess of this target may be appropriate due to unique programming or staffing requirements. However, any such exceptions must be approved by the City Manager based on the review and recommendation of the Directors of Finance and Human Resources.

5. Limited‐term contract employees are defined as temporary staff, eligible for defined benefits, with written employment contracts that have a defined end‐date and are approved by the Director of Human Resources and City Attorney. Limited‐term contract employees will generally be used for medium‐term (generally between six months and two years) projects, programs, or activities requiring specialized or augmented levels of staffing for a specific period of time. The services of limited‐term contract employees will be discontinued upon completion of the assigned project, program, or activity. Accordingly, limited‐term contract employees will not be used for services that are anticipated to be delivered on an ongoing basis and as such, a determination as to the expected need will be made at the end of each contract term and prior to extending or renewing a contract.

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6. Temporary Agency Employees are employed during short‐term, peak workload assignments to be accomplished using personnel contracted through an outside employment agency (OEA). In this situation, it is anticipated that City staff will closely monitor the work of temporary agency employees and minimal training will be required. However, they will always be considered the employees of the OEA and not the City. All placements through an OEA will be coordinated through the Human Resources Department and subject to the approval of the Director of Human Resources.

C. Overtime Management

1. Overtime should be used only when necessary and when other alternatives are not feasible or cost effective.

2. All overtime must be pre‐authorized by a department head or delegate unless it is assumed preapproved by its nature (e.g., overtime that results when an employee is assigned to standby and/or must respond to an emergency or complete an emergency response).

3. Departmental operating budgets should reflect anticipated annual overtime costs and departments will regularly monitor overtime use and expenditures.

4. When considering the addition of regular or temporary staffing, the use of overtime as an alternative will be considered. The department will take into account:
a. The duration that additional staff resources may be needed. b. The cost of overtime versus the cost of additional staff. c. The skills and abilities of current staff.
d. Training costs associated with hiring additional staff. e. The impact of overtime on existing staff.

D. Independent Contractors
Independent contractors are not City employees. Independent contractors are used in construction of public works projects and delivery of operating, maintenance, or specialized professional services not routinely performed by City employees. Such services will be provided without close supervision by City staff, and the required methods, skills, and equipment will generally be determined and provided by the independent contractor. Contract awards will be guided by the City's purchasing policies and procedures. (See Contracting for Services Policy) Section 12. Contracting for Services
A. General Policy Guidelines

1. Contracting with the private sector for the delivery of services provides the City with an opportunity for cost containment and productivity enhancements.   As such, the City is committed to using private sector resources in delivering municipal services as a key element in our continuing efforts to provide cost‐effective programs.

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2. Private sector contracting approaches under this policy include construction projects, professional services, outside employment agencies, and ongoing operating and maintenance services.

3. In evaluating the costs of private sector contracts compared with in‐house performance of the service, indirect, direct, and contract administration costs of the City will be identified and considered.

4. Whenever private sector providers are available and can meet established service levels, they will be considered as viable service delivery alternatives using the evaluation criteria outlined below.

5. For programs, services, and activities currently provided by City employees, conversions to contract services will generally be made through attrition, reassignment or absorption by the contractor, after fulfilling required meet and confer obligations.

B. Evaluation Criteria
Within the general policy guidelines stated above, the cost‐effectiveness of contract services in meeting established service levels will be determined on a case‐by‐case basis using the following criteria:

1. Is a sufficient private sector market available to competitively deliver this service and assure a reasonable range of alternative service providers?

2. Can the contract be effectively and efficiently administered?

3. What are the consequences if the contractor fails to perform, and can the contract reasonably be written to compensate the City for any such damages?

4. Can a private sector contractor better respond to expansions, contractions or special requirements of the service?

5. Can the work scope be sufficiently defined to ensure that competing proposals can be fairly and fully evaluated, as well as the contractor's performance after bid award?

6. Does the use of contract services provide us with an opportunity to redefine service levels?

7. Will the contract limit our ability to deliver emergency or other high priority services?

8. Overall, can the City successfully delegate the performance of the service but still retain accountability and responsibility for its delivery?
Section 13: Productivity
Ensuring the “delivery of service with value for cost” is one of the key concepts embodied in the City's Mission Statement (San Luis Obispo Style— Quality With Vision).  To this end, the City will constantly monitor and review our methods of operation to ensure that services continue to be delivered in the most cost‐effective manner possible.

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This review process encompasses a wide range of productivity issues, including:

A. Analyzing systems and procedures to identify and remove unnecessary review requirements.

B. Evaluating the ability of new technologies and related capital investments to improve productivity.

C. Developing the skills and abilities of all City employees.

D. Developing and implementing appropriate methods of recognizing and rewarding exceptional employee performance.

E. Evaluating the ability of the private sector to perform the same level of service at a lower cost.

F. Periodic formal reviews of operations on a systematic, ongoing basis.

G. Maintaining a decentralized approach in managing the City's support service functions.  Although some level of centralization is necessary for review and control purposes, decentralization supports productivity by:

1. Encouraging accountability by delegating responsibility to the lowest possible level.

2. Stimulating creativity, innovation and individual initiative.

3. Reducing the administrative costs of operation by eliminating unnecessary review procedures.

4. Improving the organization's ability to respond to changing needs and identify and implement cost‐saving programs.

5. Assigning responsibility for effective operations and citizen responsiveness to the department.

H. Maintaining City purchasing policies and procedures that are as efficient and effective as possible.

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Glossary
A
Abatement. A reduction in amount, degree, or intensity of something, such as a tax.

Account. A separate financial reporting unit. All budgetary transactions are recorded in accounts.

Accrual Basis. A basis of accounting in which transactions are recognized at the time they are incurred, as opposed to when cash is received or spent.

Actuarial. A person or methodology that makes determinations or required contributions to achieve future funding levels that address risk and time.

Ad Valorem Tax. A tax levied on the assessed value of real estate and personal property. This tax is also known as property tax.

Adopted Budget. The proposed budget as formally approved by the City Council.

Appropriation. An authorization made by the City Council, which permits the City to incur obligations to make expenditures for specific purposes.

Assessed Valuation. A value that is established for real and personal property for use as a basis for levying property taxes.

Asset. Resources owned or held by a government that have monetary value.

B
Balanced Budget. A budget in which planned funds or revenues available are equal to planned fund expenditures.

Bond. A written promise to pay a sum of money on a specific date at a specified interest rate. The interest payments and the repayment of the principal are detailed in a bond ordinance. The most common types of bonds are general obligation and revenue bonds.

Bond Rating. The City of San Luis Obispo uses both of the Nation's primary bond rating services  ‐ Moody’s Investors Service and Standard & Poor's. These rating services perform credit analysis to determine the probability of an issuer of debt defaulting partially or fully.

Bond Refinancing. The payoff and re issuance of bonds to obtain better interest rates and/or bond conditions.

Budget. A plan of financial operation for a specified period of time (fiscal year). The Annual Budget Financial Plan Page 416

REFERENCE MATERIAL
authorizes and provides the basis for control of financial operations during the fiscal year.

Budget Adjustment. A procedure to revise a budget appropriation either by City Council approval through the adoption of a supplemental appropriation ordinance for any interdepartmental or inter‐ fund adjustments or by City Manager authorization to adjust appropriations within a departmental budget.

Budget Calendar. The schedule of key dates or milestones that the City follows in the preparation, adoption, and administration of the budget.

Budget Document. The instrument used by the budget‐making authority to present a comprehensive financial program to the City Council.

Budget Team. A fun group of hard‐working employees responsible for budget preparation, benchmarking, forecasting, and financial analysis.

Budget Message. The opening section of the budget that provides the City Council and the public with a general summary of the most important aspects of the budget, changes from the current and previous fiscal years, and recommendations regarding the financial policy for the upcoming period.

Budgetary Basis. This refers to the form of accounting used throughout the budget process. These generally take one of three forms:  GAAP, cash, modified accrual, or some type of statutory form.

Budgetary Control. The control or management of a governmental unit or enterprise in accordance with an approved budget for the purpose of keeping expenditures within the limitations of authorized appropriations and available revenues.

C
Capital Assets. Assets of long‐term character that are intended to continue to be held or used, such as land, buildings, machinery, furniture and other equipment.

Capital Budget. The appropriation of bonds or operating revenue for improvements to facilities and other infrastructure.

Capital Improvements. Expenditures related to the acquisition, expansion, or rehabilitation of an element of the government’s physical plant, sometimes referred to as infrastructure.

Capital Improvement Plan (CIP). A plan for capital expenditures to provide long‐lasting physical improvements to be incurred over a fixed period of several future years. The City of San Luis Obispo’s City Charter requires annual submission of a five‐year capital program for City Council acceptance.

Capital Outlay. Expenditures that result in the acquisition of, or addition to, fixed assets.

Cash Basis. A basis of accounting in which transactions are recognized only when cash is increased or decreased.

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REFERENCE MATERIAL
Contingency. A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted.

Core Service.  A principal service or product delivered by a program or department that is necessary to the successful operation of the City.

D
Debt Service. The amount of interest and principal that a City must pay each year on net direct long‐ term debt plus the interest it must pay on direct short‐term debt.

Deficit. The excess of an entity’s liabilities over its assets or the excess of expenditures over revenues during a single accounting period.

Department. A major administrative unit of the City that indicates overall management responsibility for an operation or a group of related operations within a functional area. Departments are comprised of divisions, programs, and/or sections.

Depreciation. Expiration in the service life of capital assets attributable to wear and tear, deterioration, action of the physical elements, inadequacy, or obsolescence.

Diversity, Equity and Inclusion (DEI). The City of San Luis Obispo values diversity, promotes equity and belonging, actively denounces all forms of bigotry and believes that both in value and practice San Luis Obispo can be a place where all individuals* are treated with dignity, respect, and inclusion. The City is dedicated to building a community and government in which diversity is celebrated, inclusion and equity are embedded in policy, and all members of the public are represented to ensure San Luis Obispo is a place all can thrive. *All individuals refer to all cultures, national origins, gender identities, gender expressions, sexual orientations, pregnancy statuses, racial and ethnic identities, linguistic backgrounds and languages, age, disabilities, genetic information, veteran status, and spiritual/religious beliefs.

Division. A functional unit within a department.

E
Encumbrance. The legal commitment of appropriated funds to purchase an item or service. To encumber funds means to set aside or commit funds for a future expenditure.

ESG Investing. Environmental, Social, and Governance refers to the three central factors in measuring the sustainability and societal impact of an investment in accompany or business. The method rates company’s environmental footprint, social behavior, and company governance such as labor practice, governing board composition, talent management, product safety, and data security to name a few.

Estimated Revenue. The amount of projected revenue to be collected during the fiscal year.

Expenditure/Expense. This term refers to the outflow of funds paid for an asset obtained or goods and services obtained.

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F
Financial Reserves. An unappropriated source of funding that can be utilized to meet unexpected budgetary needs.

Fiscal Year. The time period designated by the City signifying the beginning and ending period for recording financial transactions. The City of San Luis Obispo has specified July 1 to June 30 as its fiscal year.

Forfeiture. The automatic loss of property, including cash, as a penalty for breaking the law, or as compensation for losses resulting from illegal activities. Once property has been forfeited, the City may claim it, resulting in confiscation of the property.

Full Faith and Credit. A pledge of a government’s taxing power to repay debt obligations.

Full‐Time Employee. A full‐time employee working 38‐40 hours per week and receiving benefits.

Fund. A set of inter‐related accounts to record revenues and expenditures associated with a specific purpose. Fund structure presented below
Governmental Funds
Capital Projects Fund. Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds and Trust Funds).

Debt Service Fund. Debt Service Funds are set up to receive dedicated revenues used to make principal and interest payments on City debt. They are used to account for the accumulation of resources for, and the payment of, general obligation and special assessment debt principal, interest and related costs, except the debt service accounted for in the Special Revenue Funds and Enterprise Funds.

General Fund. The General Fund is the general operating fund of the City. It is used to account for all activities of the City not accounted for in another fund.

Special Revenue Fund. Special Revenue Funds are set up as accounts for Federal or State grants legally restricted to expenditures for specific purposes.

Proprietary Funds
Enterprise Funds. Enterprise Funds are used to account for operations including debt service (a) that are financed and operated in a manner similar to private businesses – where the intent of the government body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis is financed or recovered primarily through user charges; or (b) where the governing body has determined that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control accountability, or other purposes.

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Internal Service Funds. Internal Service Funds are established to account for an entity that provides goods and services to other City entities and charges those entities for the goods and services provided.

Fund Balance. The difference between revenues and expenditures. The beginning fund balance represents the residual funds brought forward from the previous year (ending balance) G
Generally Accepted Accounting Principles (GAAP). Uniform minimum standards for financial accounting and recording, encompassing the conventions, rules, and procedures that define accepted accounting principles.

General Governmental Revenue. The revenues of a government other than those derived from and retained in an Enterprise Fund. General Governmental revenues include those from the General, Debt Service, and Special Revenue Funds.

General Obligation Bonds. Bonds that finance a variety of public projects such as streets, buildings, and improvements; the repayment of these bonds is usually made from secondary property taxes, and these bonds are backed by the full faith and credit of the issuing government.

Goal. A statement of direction based on identified strategic priorities. Should be measurable and able to be achieved in 3 to 5 years.

Grant. A contribution by the State or Federal government or other organization to support a particular function. Grants may be classified as either categorical or block depending upon the amount of discretion allowed the grantee.

I
Indirect Cost. A cost necessary for the functioning of the organization as a whole, but which cannot be directly assigned, such as administrative support, facility maintenance or custodial services.

Inflation. A rise in price levels caused by an increase in available funds beyond the proportion of available goods.

Infrastructure. Public domain fixed assets including roads, curbs, gutters, sidewalks, drainage systems, lighting systems, and other items that have value only to the City.

Interest Income. Revenue associated with the city cash management activities of investing fund balances.

Intergovernmental Resources. Funds received from federal, state, and other local government sources in the form of grants, shared revenues, and payments in lieu of taxes.

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Inter‐fund Transfer. The movement of monies between funds of the same governmental entity.

Inter‐local Agreement. A contractual agreement between two or more governmental entities.

Internal Services Charges. The charges to user departments for internal services provided by another government agency, such as data processing, equipment maintenance and communications.

L
Levy. To impose taxes for the support of government activities.

Long‐Term Debt. Debt with a maturity of more than one year after the date of issuance.

M
Major City Goals. The most important, highest priority goals for the City to accomplish over the next two years, and as such, resources should be included in the 2025‐27 Financial Plan.

Major Fund. Funds whose revenues, expenditures/ expenses, assets, or liabilities (excluding extraordinary items) are at least 10 percent of corresponding totals for all governmental or enterprise funds and at least 5 percent of the aggregate amount for all governmental and enterprise funds. These represent the City's most important funds and include the General Fund.

Mandate. A requirement from a higher level of government that a lower level of government perform a task in a particular way or standard.

Mission Statement. The statement that identifies the particular purpose and function of an entity.

Modified Accrual Basis. The basis of accounting under which revenues are recognized when measurable and available to pay liabilities. Expenditures are recognized when the liability is incurred except for interest on long‐term debt which is recognized when due, and the noncurrent portion of accrued vacation and sick leave, which is recorded in general long‐term debt.

Municipal Code. A collection of laws, rules, and regulations that apply to the City and its citizens.

N
Neighborhood Services. A program developed to promote and strengthen the stability, development, revitalization, and preservation of neighborhoods through community‐based problem solving.

Net Position. Governmental financial statement reporting for proprietary funds where assets plus deferred outflows of resources, less liabilities, less deferred inflows of resources, equals net position program.

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O
Objective. A specific measurable and observable result of an organization’s activity, which advances the organization toward its goal.

Ombudsman. One that investigates reported complaints, reports findings, and helps to achieve equitable settlements.

OPEB. Other post‐employment benefits are benefits that an employee will begin to receive at the start of retirement such as health care and deferred‐compensation arrangements.

Operating Budget. The portion of the budget that pertains to daily operations that provide basic governmental services. The operating budget contains appropriations for expenditures such as personnel, supplies, utilities, materials, travel, and fuel.

Operating Expenses. The cost for personnel, materials, and equipment required for a department to function.

Operating Revenue. Funds that the government receives as income to pay for ongoing operations, including such items as taxes, user fees, interest earnings, and grant revenues. Operating revenues are used to pay for day‐to‐ day services.

P
Pay‐As‐You‐Go Financing. A term used to describe a financial policy by which the capital program is financed from current revenues rather than through borrowing.

Per Capita. A measurement of the proportion of some statistic to an individual resident determined by dividing the statistic by the current population.

Performance Budget. A budget that focuses upon departmental goals and objectives rather than line items, programs, or funds. Workload and unit cost data are collected in order to assess the effectiveness and efficiency of services. Typical measures collected might include average emergency response time for the fire.

Performance Measure. Data collected to determine how effective and/or efficient a program is in achieving its objectives.

Policy. A plan, course of action or guiding principle designed to set parameters for decisions and actions.

Prior Year Encumbrances. Obligations from previous years in the form of purchase orders or contracts that are chargeable to an appropriation, and for which a part of the appropriation is reserved. They cease to be encumbrances when the obligations are paid or otherwise terminated.

Potable Water. Water that is fit to drink.

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Program. Group activity, operations, or organizational units directed to attaining specific objectives and achievements and budgeted as sub‐units of a department.

Program Budget. A budget that allocates money to the functions or activities of a government rather than to specific items of cost or to specific departments.

Property Tax. A levy upon the assessed valuation of the property within the City of San Luis Obispo upon each $100 of assessment.

R
Retained Earnings. An equity account reflecting the accumulated earnings of an enterprise or internal service fund.

Revenue. Funds that the government receives as income. It includes such items as tax payments, fees from specific services, receipts from other governments, fines, forfeitures, grants, shared revenues, and interest income.

Revenue Bonds. Bonds usually sold for constructing a project that will produce revenue for the government. That revenue is pledged to pay the principal and interest of the bond.

Reserve. An account used to indicate that a portion of a fund’s assets are legally restricted for a specific purpose and is, therefore, not available for general appropriation.

Resolution. A special or temporary order of a legislative body requiring less legal formality than an ordinance or statute.

Resources. Total amounts available for appropriation including estimated revenues, fund transfers, and beginning balances.

Risk Management. An organized attempt to protect a government’s assets against accidental loss in the most economical method.

S
Sales Tax. Tax imposed on the taxable sales of all final goods.

Source of Revenue. Revenues are classified according to their source or point of origin.

Special Assessment. A compulsory levy made against certain properties to defray part or all of the cost of a specific improvement or service deemed to primarily benefit those properties.

State and Local Fiscal Recovery Funds. Federal program authorized by the American Rescue Plan Act (ARPA) to provide $350 billion to state, territorial, local, and Tribal governments across the United States to support their response to and recovery from the COIVD‐19 public health emergency.

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Strategic Plan. A document outlining long‐term goals, critical issues, and action plans that will increase the organization’s effectiveness in attaining its vision, priorities, mission, goals and objectives.

System Development Charge. That portion of the connection charge that is determined to be the customer’s proportionate share of the cost of providing transmission, pumping, and storage facilities required to serve the various distribution areas or zones within the system.

T
Tax Levy. The resultant product when the tax rate per $100 is multiplied by the tax base.

Taxes. Compulsory charges levied by a government for the purpose of financing services performed for the common benefit of the people. This term does not include specific charges made against particular persons or property for current or permanent benefit, such as special assessments.

Transfers In/Out. Amounts transferred from one fund to another to assist in financing the services for the recipient fund.

U
Undesignated Fund Balance. The portion of a fund’s balance that is not legally restricted for a specific purpose and is available for general appropriation.

Unencumbered Balance. The amount of an appropriation that is neither expended nor encumbered. It is essentially the amount of money still available for future purposes.

Unfunded Pension Liability. The difference between assets in a pension fund and the amount of benefits the fund is required to pay out in the long‐term.

Unreserved Fund Balance. The portion of a fund’s balance that is not restricted for a specific purpose and is available for general appropriation.

Useful Life. The period of time that a fixed asset is able to be used. This can refer to a budget period of time for an equipment class or the actual amount of time for a particular item.

User Charges. The payment of a fee for direct receipt of a public service by the party who benefits from the service.

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Acronym Glossary
3CE Central Coast Community Energy
ACFR Annual Comprehensive Financial
Reports
AP Accounts Payable
APWA American Public Works
Association
AR Accounts Receivable
ARB Administrative Review Board
ARC Architectural Review Commission
ARPA American Rescue Plan Act
ATC Active Transportation Committee
BAR Budget Amendment Request
CAD Computer Aided Dispatch
CALOES California Office of Emergency
Services
CALPERS California Public Employee
Retirement System
CAP Cost Allocation Plan
CAPSLO Community Action Partnership of
San Luis Obispo
CAR Council Agenda Report
CAT Community Action Team
CBOA Construction Board of Appeals
CCCI California Construction Cost Index
CDBG Community Development Block
Grant
CDD Community Development
Department
CEQA California Enivronmental Quality
Act
CHC Cultural Heritage Committee
CMR City Manager Report
COPS Community Oriented Policing
Strategy
COS Cost of Services
CPA Certified Public Accountant
CPI Consumer Price Index
CPUC California Public Utilities
Commission
CUP Conditional Use Permit
CVRA California Voting Rights Act of
2001
DEITF Diversity, Equity, Inclusion (Task
Force)
DSLO Downtown San Luis Obispo
EOC Emergency Operations Center
EV Electric Vehicle
FEMA Federal Emergency Management
Agency
FMLA Family and Medical Leave Act
FMM Financial Management Manual
FPSC Financial Plan Steering Committee
FTE Full Time Equivalent
FY Fiscal Year
FYTD Fiscal Year‐to‐date
GAAP Generally Accepted Accounting
Principles
GASB Governmental Accounting
Standards Board
GFOA Government Finance Officers
Association
GIS Geographic Information System
GL General Ledger
HAZMAT Hazardous Materials
HA Housing Authority
HR Human Resources
HRC Human Relations Commission
IAFF International Association of Fire
Fighters
IOC Investment Oversight Committee
IT Information Technology
ITSC Information Technology Steering
Committee
JPA Joint Powers Authority
LAFCO Local Agency Formation
Commission
LAIF Local Agency Investment Fund
LGBQT Lesbian, Bisexual, Gay,
Transgender, Questioning
LRM Local Revenue Measure
MCU Mobile Crisis Unit
MDC Mobile Data Computer
MOA Memorandum of Agreement
MOU Memorandum of Understanding
MTC Mass Transportation Committee
MUP Minor Use Permit
NEPA National Environmental Policy Act
NOV Notice of Violation
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REFERENCE MATERIAL
OSHA Occupational Safety and Health
Administration
PAFT Popular Annual Financial Report
PB Personnel Board
PC Planning Commission
PCC Promotional Coordinating
Committee
PERS Public Employees' Retirement
System
PFF Public Facilities Fees
PO Purchase Order
POA Police Officers’ Association
POST Peace Officer Standards and
Training
PRRC Parks and Recreation Commission
PW Public Works
REOC Revenue Enhancement Oversight
Commission
RFI Request for Information
RFP Request for Proposal
RFQ Request for Qualifications
RMS Records Management System
SLFRF State and Local Fiscal Recovery
Funds
SLOCEA San Luis Obispo City Employees'
Association
SLOCOG San Luis Obispo Council of
Governments
SLOPSOA San Luis Obispo Police Staff
Officers' Association
SLOREP San Luis Obispo Repertory Theatre
SOBC Significant Operating Budget
Change
SOP Standard Operating Procedure
SRF State Revolving Fund
TAC Technical Advisory Committee
TBID Tourism Business Improvement
District
TC Tree Committee
TDA Transportation Development Act
THMA Transitions‐ Mental Health
Association
TOT Transient Occupancy Tax
USGS U.S. Geological Survey
UT Utilities
UUT Utilities Users Tax
VLF Vehicle License Fee
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REFERENCE MATERIAL
Appropriation Limit
The City’s appropriation limit is based on the Gann Spending Limit Initiative, a State constitutional amendment adopted by the voters on June 6, 1979 and amended in 1990 with Proposition 111. It is anchored in the State Constitution under Article XIIIB.

The limit restricts appropriations from tax revenues by State and local governments. Under its provisions, no local agency can appropriate proceeds of taxes in excess of its “appropriation limit”.

Excess funds may be carried over into the next year. However, any excess funds remaining after the second year must be returned to taxpayers by reducing tax rates or fees; a majority of the voters may approve an override to increase the limit.

The City’s appropriation limit is calculated by considering population growth and cost of living as allowed under Proposition 111.

The following summarizes changes in the City’s appropriation limit and appropriations subject to the limit for the past ten years as well as the appropriation limit for FY 2025‐26.   A positive variance indicates that the City’s appropriations are lower than the allowable limit.

Factors Ratio
A.) Prior Year Appropriation Limit $94,976,973
B.) Adjustment Factors

1. Population Change 1.02% 1.0152

2. Cost of Living Increase 1.06% 1.0644

3. Combined Factor 1.08% 1.0806
Adjusted Limit $102,632,964
Fiscal Year Limit Base
Cost of Living
Factor
Population
Factor
Appropriation
Limit
Appropriations
Subject to Limit Variance
2016‐17 62,534,500 5.63% 0.60% 66,451,500 49,397,200 17,054,300 2017‐18 66,451,500 1.20% 0.92% 67,867,633 50,036,391 17,831,242 2018‐19 67,867,633 1.88% 0.35% 69,383,546 51,142,315 18,241,231 2019‐20 69,383,546 6.37% 0.24% 73,981,290 50,127,692 23,853,598 2020‐21 73,981,290 1.92% ‐0.04% 75,373,410 48,342,410 27,031,416 2021‐22 75,373,410 5.11% 0.31% 79,470,558 52,362,031 27,108,458 2022‐23 79,470,558 7.55% 0.28% 85,706,220 65,610,162 20,093,058 2023‐24 85,706,220 4.79% 1.15% 90,839,932 71,693,192 19,146,740 2024‐25 90,839,932 3.62% 0.90% 94,976,973 76,671,495 18,305,478 2025‐26 94,976,973 6.44% 1.52% 102,632,964 91,034,718 11,598,246 Financial Plan Page 427

APPENDIX
Financial Plan Page 428

Appendix
Operating Budget Line‐Item Detail (All funds)
This section includes General Ledger Account level detail for all funds’ operating budgets by department and cost center. Because it includes all funds, department totals may not equal summary tables included elsewhere in the budget. Accounts included in the following tables are limited to operating expenditures, including staffing and other operating expenditures, and do not include non‐operating costs like capital expenditures, debt service, or transfers.

Financial Plan Page 429

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 Administration & IT           13,749,393           13,815,019 1001‐City Administration              1,651,007              1,707,428 51001‐Salaries ‐ Regular              1,043,481              1,062,984 51004‐Salaries ‐ Temporary                      8,400                      8,400 52001‐Retirement Contributions                    69,658                    71,012 52002‐Retirement PARS ‐ 401                    11,341                    11,734 52003‐PERS Unfunded Liability                 233,809                 256,628 53001‐Employee Group Insurance                    98,844                 103,302 53002‐Retiree Healthcare                    13,135                    13,496 55001‐Medicare                    14,541                    14,809 61001‐Advertising and Public Outreach                      6,000                      6,000 61008‐Parking                      7,680                      7,680 61013‐Other Contract Services                   82,665                   87,500 62001‐Print and Reproduction                         200                         200 62002‐Office Supplies                      3,500                      3,500 62003‐Postage                         200                         200 62004‐Publications and Subscriptions                         310                         325 62009‐Software Licensing and Maint Agreements                    27,143                    29,558 63001‐Membership and Certifications                      2,400                      2,400 63002‐Education and Training                    13,800                    13,800 63003‐Trips and Meetings                    13,900                    13,900 1002‐City Council                 200,724                 203,580 51001‐Salaries ‐ Regular                     1,061                     1,061 51002‐Council and Commissioners                 109,606                 109,606 52001‐Retirement Contributions                      5,000                      5,000 52003‐PERS Unfunded Liability                    18,824                    20,661 53001‐Employee Group Insurance                    29,190                    30,180 53002‐Retiree Healthcare                      1,058                      1,087 55001‐Medicare                      1,586                      1,586 62001‐Print and Reproduction                         400                         400 62010‐Office Expenses ‐ Other                    17,400                    17,400 63002‐Education and Training                    12,000                    12,000 63003‐Trips and Meetings                      4,600                      4,600 Financial Plan Page 430

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 1004‐Economic Development                 777,621                 788,450 51001‐Salaries ‐ Regular                 158,497                 165,138 52001‐Retirement Contributions                    10,656                    11,104 52003‐PERS Unfunded Liability                    36,760                    40,347 53001‐Employee Group Insurance                      3,600                      3,600 53002‐Retiree Healthcare                      2,065                      2,122 55001‐Medicare                      2,293                      2,389 61001‐Advertising and Public Outreach                    11,100                    11,100 61013‐Other Contract Services                 536,000                 536,000 62004‐Publications and Subscriptions                         300                         300 62509‐Misc Materials and Supplies                      2,100                      2,100 63001‐Membership and Certifications                     1,000                     1,000 63002‐Education and Training                      5,000                      5,000 63003‐Trips and Meetings                      8,250                      8,250 1005‐Natural Resource Protection                 949,227                 953,648 51001‐Salaries ‐ Regular                 514,147                 514,147 52001‐Retirement Contributions                    34,042                    34,042 52003‐PERS Unfunded Liability                 121,736                 133,617 53001‐Employee Group Insurance                    61,680                    64,032 53002‐Retiree Healthcare                      6,839                      7,027 55001‐Medicare                      7,324                      7,324 61009‐Regulatory Fees                    40,000                    40,000 61013‐Other Contract Services                 130,000                 120,000 62003‐Postage                         500                         500 62004‐Publications and Subscriptions                         500                         500 62509‐Misc Materials and Supplies                    21,959                    21,959 63002‐Education and Training                    10,000                    10,000 63003‐Trips and Meetings                         500                         500 1006‐Tourism and Bid Promotion              2,175,542              2,184,547 51001‐Salaries ‐ Regular                 157,759                 164,371 51004‐Salaries ‐ Temporary                    40,007                    41,009 52001‐Retirement Contributions                    10,497                    10,938 52003‐PERS Unfunded Liability                    35,813                    39,308 53001‐Employee Group Insurance                   14,189                   14,774 53002‐Retiree Healthcare                      2,012                      2,067 55001‐Medicare                      2,838                      2,948 61001‐Advertising and Public Outreach                    55,055                    55,275 61013‐Other Contract Services              1,823,238              1,819,586 62004‐Publications and Subscriptions                    15,015                    15,075 62509‐Misc Materials and Supplies                      1,001                      1,005 63001‐Membership and Certifications                      4,004                      4,020 63002‐Education and Training                      9,009                      9,045 63003‐Trips and Meetings                      5,105                      5,126 Financial Plan Page 431

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 1007‐Community Promotion                 398,545                 400,143 51001‐Salaries ‐ Regular                    21,468                    22,368 52001‐Retirement Contributions                      1,415                      1,475 52003‐PERS Unfunded Liability                      4,838                      5,310 53001‐Employee Group Insurance                      3,247                      3,394 53002‐Retiree Healthcare                         272                         279 55001‐Medicare                         304                         317 61001‐Advertising and Public Outreach                    50,000                    50,000 61013‐Other Contract Services                 313,000                 313,000 63003‐Trips and Meetings                      4,000                      4,000 1008‐Downtown Association Administration                 246,713                 251,647 61013‐Other Contract Services                 246,713                 251,647 1009‐Community Services Group                 639,244                 653,267 51001‐Salaries ‐ Regular                 397,496                 398,411 52001‐Retirement Contributions                    26,563                    26,624 52002‐Retirement PARS ‐ 401                      2,558                      2,558 52003‐PERS Unfunded Liability                 121,479                 133,334 53001‐Employee Group Insurance                    25,590                    26,580 53002‐Retiree Healthcare                      6,824                      7,012 55001‐Medicare                      5,715                      5,728 61008‐Parking                         995                         995 61013‐Other Contract Services                    40,000                    40,000 62002‐Office Supplies                      1,650                     1,650 62007‐Employee Recognition                      1,000                      1,000 62509‐Misc Materials and Supplies                         350                         350 63001‐Membership and Certifications                      1,525                      1,525 63002‐Education and Training                      3,500                      3,500 63003‐Trips and Meetings                      4,000                      4,000 1010‐Office of DEI                 708,209                 658,742 51001‐Salaries ‐ Regular                 207,776                 213,470 52001‐Retirement Contributions                    16,145                    16,528 52003‐PERS Unfunded Liability                    32,971                    36,189 53001‐Employee Group Insurance                    24,456                    25,560 53002‐Retiree Healthcare                     1,852                     1,903 55001‐Medicare                      3,009                      3,092 61013‐Other Contract Services                 405,000                 345,000 63002‐Education and Training                    17,000                    17,000 Financial Plan Page 432

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 1021‐City Clerk                 758,454                 686,007 51001‐Salaries ‐ Regular                 376,543                 383,108 51004‐Salaries ‐ Temporary                      6,103                      6,256 52001‐Retirement Contributions                    31,927                    32,566 52003‐PERS Unfunded Liability                    88,411                    97,039 53001‐Employee Group Insurance                    40,977                    42,810 53002‐Retiree Healthcare                      4,967                      5,103 55001‐Medicare                      5,482                      5,580 61001‐Advertising and Public Outreach                    10,000                    10,000 61013‐Other Contract Services                 163,900                    73,900 62001‐Print and Reproduction                      1,000                         500 62002‐Office Supplies                     5,700                     5,700 62004‐Publications and Subscriptions                      5,200                      5,200 62010‐Office Expenses ‐ Other                      1,000                      1,000 63001‐Membership and Certifications                      1,545                      1,545 63002‐Education and Training                      9,250                      9,250 63003‐Trips and Meetings                      6,450                      6,450 1031‐Boysen Ranch Conserv Easement                      7,500                      7,500 61013‐Other Contract Services                      7,500                      7,500 1101‐Network Services              3,630,747              3,671,425 51001‐Salaries ‐ Regular                 971,560                 983,366 51004‐Salaries ‐ Temporary                    21,625                    22,166 51010‐Overtime                   37,500                   37,500 51017‐Standby                    18,500                    18,500 51018‐Call Back                    33,955                    33,955 52001‐Retirement Contributions                    79,740                    80,520 52003‐PERS Unfunded Liability                 222,358                 244,059 53001‐Employee Group Insurance                 129,639                 134,970 53002‐Retiree Healthcare                    12,492                    12,835 55001‐Medicare                    14,178                    14,353 61005‐Data Processing Services                 795,204                 755,186 61013‐Other Contract Services                 468,667                 513,884 61503‐Electric Service                      8,311                      8,311 61505‐Communication Service                 336,470                 336,470 62002‐Office Supplies                 310,180                 305,180 62509‐Misc Materials and Supplies                    18,648                    16,808 62511‐Rents and Leases                    93,420                    95,061 63001‐Membership and Certifications                      2,200                      2,200 63002‐Education and Training                    54,100                    54,100 63003‐Trips and Meetings                      2,000                      2,000 Financial Plan Page 433

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 1103‐Information Services              1,605,860              1,648,636 51001‐Salaries ‐ Regular              1,010,728              1,022,325 51010‐Overtime                    12,535                    12,535 52001‐Retirement Contributions                    87,511                    88,532 52003‐PERS Unfunded Liability                 240,414                 263,876 53001‐Employee Group Insurance                 141,018                 147,175 53002‐Retiree Healthcare                    13,506                    13,878 55001‐Medicare                    14,553                    14,720 61005‐Data Processing Services                    45,095                    45,095 61013‐Other Contract Services                    11,400                    11,400 62002‐Office Supplies                      6,000                      6,000 63002‐Education and Training                    22,700                    22,700 63003‐Trips and Meetings                        400                        400 Community Development              8,399,657              8,449,562 4001‐Community Development Administration              1,126,412              1,006,413 51001‐Salaries ‐ Regular                 539,779                 544,630 51010‐Overtime                      1,400                      1,400 52001‐Retirement Contributions                    41,704                    42,177 52002‐Retirement PARS ‐ 401                      2,224                      2,224 52003‐PERS Unfunded Liability                 122,146                 134,066 53001‐Employee Group Insurance                    84,588                    88,320 53002‐Retiree Healthcare                      6,862                      7,051 55001‐Medicare                      7,714                      7,784 61001‐Advertising and Public Outreach                   15,000                   15,000 61005‐Data Processing Services                    10,500                    10,500 61008‐Parking                    23,650                    23,650 61013‐Other Contract Services                 150,086                      8,852 62001‐Print and Reproduction                      6,600                      6,600 62002‐Office Supplies                      6,000                      6,000 62003‐Postage                      8,000                      8,000 62004‐Publications and Subscriptions                         900                         900 62007‐Employee Recognition                      3,000                      3,000 62509‐Misc Materials and Supplies                      3,050                      3,050 63001‐Membership and Certifications                      1,000                      1,000 63002‐Education and Training                      5,000                     5,000 63003‐Trips and Meetings                      1,210                      1,210 65013‐Credit Cards Merchant Fees                    86,000                    86,000 Financial Plan Page 434

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 4002‐Commissions and Committees                   36,563                   36,563 51002‐Council and Commissioners                    25,000                    25,000 55001‐Medicare                         363                         363 62004‐Publications and Subscriptions                         300                         300 63002‐Education and Training                      7,600                      7,600 63003‐Trips and Meetings                      3,300                      3,300 4003‐Planning              1,946,679              2,010,790 51001‐Salaries ‐ Regular              1,109,322              1,135,082 51004‐Salaries ‐ Temporary                    45,806                    46,310 51010‐Overtime                    12,500                    12,500 52001‐Retirement Contributions                    90,332                    92,597 52003‐PERS Unfunded Liability                 258,888                 284,153 53001‐Employee Group Insurance                 118,950                 123,780 53002‐Retiree Healthcare                    14,544                    14,944 55001‐Medicare                    16,665                    17,044 61013‐Other Contract Services                 251,473                 256,179 62004‐Publications and Subscriptions                         500                         500 62509‐Misc Materials and Supplies                         700                         700 63001‐Membership and Certifications                      5,000                      5,000 63002‐Education and Training                    21,000                    21,000 63003‐Trips and Meetings                      1,000                      1,000 4004‐Engineering                 956,698                 999,988 51001‐Salaries ‐ Regular                 596,436                 620,300 51010‐Overtime                   12,000                   12,000 52001‐Retirement Contributions                    46,898                    48,736 52003‐PERS Unfunded Liability                 142,695                 156,621 53001‐Employee Group Insurance                    71,040                    74,136 53002‐Retiree Healthcare                      8,016                      8,237 55001‐Medicare                      8,613                      8,959 61013‐Other Contract Services                    57,000                    57,000 62002‐Office Supplies                      3,000                      3,000 62004‐Publications and Subscriptions                         500                         500 63001‐Membership and Certifications                      3,500                      3,500 63002‐Education and Training                      6,000                      6,000 63003‐Trips and Meetings                     1,000                     1,000 Financial Plan Page 435

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 4006‐Building and Safety              2,961,864              3,040,529 51001‐Salaries ‐ Regular              1,566,001              1,594,814 51010‐Overtime                    10,000                    10,000 52001‐Retirement Contributions                 136,069                 138,663 52003‐PERS Unfunded Liability                 317,904                 348,929 53001‐Employee Group Insurance                 207,078                 216,012 53002‐Retiree Healthcare                    17,859                    18,351 55001‐Medicare                    22,543                    22,959 61001‐Advertising and Public Outreach                      1,410                      1,410 61005‐Data Processing Services                    44,394                    44,394 61006‐Engineering and Plan Checks                 432,665                 439,057 61011‐Maintenance                     2,440                     2,440 61013‐Other Contract Services                 140,000                 140,000 62004‐Publications and Subscriptions                      2,000                      2,000 62506‐Safety Materials and Supplies                         500                         500 62509‐Misc Materials and Supplies                      7,200                      7,200 63001‐Membership and Certifications                      2,000                      2,000 63002‐Education and Training                    50,500                    50,500 63003‐Trips and Meetings                      1,300                      1,300 4008‐Housing Policy and Homelessness Programs              1,371,441              1,355,278 51001‐Salaries ‐ Regular                 506,432                 525,809 51004‐Salaries ‐ Temporary                   23,770                   23,770 51010‐Overtime                      5,000                      5,000 52001‐Retirement Contributions                    41,217                    42,906 52003‐PERS Unfunded Liability                 115,144                 126,381 53001‐Employee Group Insurance                    49,050                    51,156 53002‐Retiree Healthcare                      6,469                      6,647 55001‐Medicare                      7,639                      7,920 61013‐Other Contract Services                 601,720                 550,690 62002‐Office Supplies                      6,800                      6,800 62004‐Publications and Subscriptions                         700                         700 63002‐Education and Training                      7,500                      7,500 Financial Plan Page 436

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 City Attorney              1,657,575              1,719,298 1501‐City Attorney              1,657,575              1,719,298 51001‐Salaries ‐ Regular                 952,719                 984,112 51004‐Salaries ‐ Temporary                 112,319                 112,319 52001‐Retirement Contributions                    72,478                    74,504 52002‐Retirement PARS ‐ 401                    15,060                    15,693 52003‐PERS Unfunded Liability                 226,062                 248,124 53001‐Employee Group Insurance                 106,794                 111,498 53002‐Retiree Healthcare                    12,700                    13,049 55001‐Medicare                    14,867                    15,303 61007‐Legal Services                    59,000                    59,000 61008‐Parking                      3,240                      3,240 61013‐Other Contract Services                   41,350                   41,880 62002‐Office Supplies                         400                         400 62003‐Postage                         100                         100 62004‐Publications and Subscriptions                    20,260                    20,850 63001‐Membership and Certifications                      3,825                      3,825 63002‐Education and Training                    14,200                    13,200 63003‐Trips and Meetings                      2,200                      2,200 Finance              2,770,356              2,852,226
2001‐Financial Administration                 370,023                 365,647 51001‐Salaries ‐ Regular                 247,501                 256,894 52001‐Retirement Contributions                    16,194                    16,815 52002‐Retirement PARS ‐ 401                      2,055                      2,141 52003‐PERS Unfunded Liability                   44,272                   48,593 53001‐Employee Group Insurance                      3,600                      3,600 53002‐Retiree Healthcare                      2,487                      2,556 55001‐Medicare                      3,484                      3,617 61008‐Parking                      1,080                      1,080 61013‐Other Contract Services                    36,500                    17,500 62002‐Office Supplies                      4,000                      4,000 62004‐Publications and Subscriptions                         250                         250 62007‐Employee Recognition                         800                         800 63001‐Membership and Certifications                         300                         300 63002‐Education and Training                      5,500                      5,500 63003‐Trips and Meetings                      2,000                      2,000 Financial Plan Page 437

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 2002‐Budget                 239,021                 267,927 51001‐Salaries ‐ Regular                 127,309                 132,435 52001‐Retirement Contributions                      8,395                      8,734 52003‐PERS Unfunded Liability                    29,215                    32,066 53001‐Employee Group Insurance                      8,220                      8,592 53002‐Retiree Healthcare                      1,641                      1,686 55001‐Medicare                      1,806                      1,879 61001‐Advertising and Public Outreach                      3,900                      4,000 61013‐Other Contract Services                    58,035                    78,035 63001‐Membership and Certifications                         300                         300 63002‐Education and Training                         200                         200 2003‐Revenue Management                586,620                603,487 51001‐Salaries ‐ Regular                 217,054                 226,513 52001‐Retirement Contributions                    18,314                    19,118 52003‐PERS Unfunded Liability                    50,057                    54,943 53001‐Employee Group Insurance                    26,856                    27,960 53002‐Retiree Healthcare                      2,812                      2,890 55001‐Medicare                      3,143                      3,281 61013‐Other Contract Services                 163,308                 163,708 62003‐Postage                      9,000                      9,000 62010‐Office Expenses ‐ Other                      1,575                      1,575 63001‐Membership and Certifications                         300                         300 63002‐Education and Training                      4,000                      4,000 63003‐Trips and Meetings                        200                        200 65013‐Credit Cards Merchant Fees                    90,000                    90,000 2004‐Purchasing                 251,548                 260,360 51001‐Salaries ‐ Regular                 169,050                 172,458 52001‐Retirement Contributions                    13,198                    13,524 52003‐PERS Unfunded Liability                    39,208                    43,035 53001‐Employee Group Insurance                    10,620                    10,992 53002‐Retiree Healthcare                      2,203                      2,263 55001‐Medicare                      2,429                      2,477 61013‐Other Contract Services                    11,840                    12,611 63002‐Education and Training                      3,000                      3,000 Financial Plan Page 438

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 2005‐Accounting              1,323,145              1,354,806 51001‐Salaries ‐ Regular                 796,861                 807,168 52001‐Retirement Contributions                    56,713                    57,488 52003‐PERS Unfunded Liability                 160,518                 176,183 53001‐Employee Group Insurance                 110,544                 115,062 53002‐Retiree Healthcare                      9,018                      9,266 55001‐Medicare                    11,392                    11,540 61001‐Advertising and Public Outreach                      1,000                      1,000 61013‐Other Contract Services                 168,000                 168,000 62001‐Print and Reproduction                         500                         500 62004‐Publications and Subscriptions                         500                         500 63001‐Membership and Certifications                        500                        500 63002‐Education and Training                      6,600                      6,600 63003‐Trips and Meetings                      1,000                      1,000 Fire           18,421,320           19,013,900
8501‐Fire Administration              1,476,006              1,506,107 51001‐Salaries ‐ Regular                 652,311                 652,653 51004‐Salaries ‐ Temporary                    63,061                    64,139 51010‐Overtime                      2,700                      2,700 52001‐Retirement Contributions                 141,256                 141,279 52002‐Retirement PARS ‐ 401                      2,491                      2,491 52003‐PERS Unfunded Liability                 150,160                 164,814 53001‐Employee Group Insurance                    48,780                    50,760 53002‐Retiree Healthcare                     8,436                     8,668 55001‐Medicare                      9,961                      9,981 61005‐Data Processing Services                    65,939                    64,741 61013‐Other Contract Services                 164,908                 170,944 61501‐City Water Service                    19,200                    20,900 61502‐City Sewer Service                    16,800                    17,472 61503‐Electric Service                    91,200                    95,760 61504‐Natural Gas Service                    10,000                    10,000 62001‐Print and Reproduction                      1,000                      1,000 62002‐Office Supplies                      5,000                      5,000 62003‐Postage                         100                         100 62007‐Employee Recognition                      2,500                      2,500 62010‐Office Expenses ‐ Other                        500                        500 62509‐Misc Materials and Supplies                      3,100                      3,100 63001‐Membership and Certifications                      2,954                      2,954 63002‐Education and Training                    12,000                    12,000 63003‐Trips and Meetings                      1,650                      1,650 Financial Plan Page 439

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 8502‐Emergency Reponse           14,521,062           15,083,641 51001‐Salaries ‐ Regular              7,244,200              7,532,836 51010‐Overtime              1,106,344              1,161,661 51012‐Overtime ‐ Training                    77,964                    81,862 51018‐Call Back                    10,080                    10,584 52001‐Retirement Contributions              1,286,907              1,333,471 52003‐PERS Unfunded Liability              3,285,803              3,606,474 53001‐Employee Group Insurance                 846,444                 882,414 53002‐Retiree Healthcare                 184,590                 189,670 55001‐Medicare                    98,088                 102,029 61005‐Data Processing Services                    30,000                    30,000 61013‐Other Contract Services                    18,391                    17,391 62503‐Equipment Maintenance Supplies                     2,300                     2,300 62505‐Machinery and Equipment                 196,200                    10,000 62506‐Safety Materials and Supplies                    38,900                    38,900 62507‐Public Safety Supplies                    49,000                    49,000 62509‐Misc Materials and Supplies                    45,850                    35,050 8503‐Hazard Prevention              1,236,599              1,299,357 51001‐Salaries ‐ Regular                 795,839                 829,641 51010‐Overtime                      5,810                      5,984 52001‐Retirement Contributions                    56,172                    58,448 52003‐PERS Unfunded Liability                 207,598                 227,858 53001‐Employee Group Insurance                    90,036                   93,978 53002‐Retiree Healthcare                    11,662                    11,983 55001‐Medicare                    11,271                    11,755 61005‐Data Processing Services                    38,000                    39,000 61013‐Other Contract Services                      1,500                      1,500 62002‐Office Supplies                         600                         600 62004‐Publications and Subscriptions                      3,635                      3,635 62010‐Office Expenses ‐ Other                      1,400                      1,400 62506‐Safety Materials and Supplies                      1,000                      1,000 62507‐Public Safety Supplies                      2,000                      2,000 62509‐Misc Materials and Supplies                      1,450                      1,450 63001‐Membership and Certifications                        625                        625 63002‐Education and Training                      7,400                      7,900 63003‐Trips and Meetings                         600                         600 8504‐Training Services                 136,374                 137,374 61005‐Data Processing Services                      5,800                      5,800 61013‐Other Contract Services                    67,000                    68,000 62507‐Public Safety Supplies                    21,700                    21,700 63001‐Membership and Certifications                         250                         250 63002‐Education and Training                    41,124                    41,124 63003‐Trips and Meetings                         500                         500 Financial Plan Page 440

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 8505‐Recruit Academy                   77,600                          ‐ 61013‐Other Contract Services                    10,000                          ‐ 62506‐Safety Materials and Supplies                    55,000                          ‐ 62507‐Public Safety Supplies                    11,600                          ‐ 62509‐Misc Materials and Supplies                      1,000                          ‐ 8506‐Fire Apparatus Services                 591,234                 598,373 51001‐Salaries ‐ Regular                 190,688                 194,483 51010‐Overtime                    13,470                    14,290 51017‐Standby                      1,735                      1,787 52001‐Retirement Contributions                    14,430                    14,674 52003‐PERS Unfunded Liability                    42,022                    46,123 53001‐Employee Group Insurance                   44,616                   46,626 53002‐Retiree Healthcare                      2,361                      2,426 55001‐Medicare                      2,707                      2,759 56002‐Misc Employee Reimbursement                      3,000                      3,000 61005‐Data Processing Services                      2,400                      2,400 61013‐Other Contract Services                    33,930                    36,930 62502‐Construction Materials and Supplies                      2,000                      2,000 62503‐Equipment Maintenance Supplies                 110,355                 110,355 62504‐Fuel                 101,300                 101,300 62509‐Misc Materials and Supplies                    13,800                      6,800 63001‐Membership and Certifications                         820                         820 63002‐Education and Training                   11,600                   11,600 8507‐Fire Station Facility Support                   43,325                   43,325 61013‐Other Contract Services                    14,000                    14,000 62503‐Equipment Maintenance Supplies                      2,600                      2,600 62507‐Public Safety Supplies                    26,725                    26,725 8510‐Mobile Crisis Unit                 136,000                 136,000 51010‐Overtime                    12,000                    12,000 61013‐Other Contract Services                 100,000                 100,000 62002‐Office Supplies                      1,000                      1,000 62509‐Misc Materials and Supplies                    18,000                    18,000 63002‐Education and Training                     5,000                     5,000 Financial Plan Page 441

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 8599‐Emergency Management                 203,120                 209,724 51001‐Salaries ‐ Regular                 119,548                 122,053 52001‐Retirement Contributions                      7,882                      8,048 52003‐PERS Unfunded Liability                    29,327                    32,189 53001‐Employee Group Insurance                    21,990                    22,980 53002‐Retiree Healthcare                      1,648                      1,693 55001‐Medicare                      1,696                      1,731 61001‐Advertising and Public Outreach                      4,450                      4,450 62001‐Print and Reproduction                      1,500                      1,500 62002‐Office Supplies                      1,500                      1,500 62010‐Office Expenses ‐ Other                      1,000                      1,000 62507‐Public Safety Supplies                     4,510                     4,510 62509‐Misc Materials and Supplies                      1,100                      1,100 63001‐Membership and Certifications                         330                         330 63002‐Education and Training                      5,500                      5,500 63003‐Trips and Meetings                      1,140                      1,140 Human Resources              7,564,991              8,184,613 3001‐Human Resources              1,982,033              2,062,750 51001‐Salaries ‐ Regular              1,082,004              1,124,924 51004‐Salaries ‐ Temporary                    20,977                    21,502 52001‐Retirement Contributions                    71,510                    74,359 52002‐Retirement PARS ‐ 401                      2,044                      2,141 52003‐PERS Unfunded Liability                 242,271                 265,915 53001‐Employee Group Insurance                 147,510                 154,122 53002‐Retiree Healthcare                    13,610                    13,985 55001‐Medicare                    15,688                    16,309 61013‐Other Contract Services                    95,500                    94,561 61029‐Recruitment Expenses                    77,288                    79,772 61030 ‐ Medical Services                      5,400                      5,400 62002‐Office Supplies                      3,500                      3,500 62004‐Publications and Subscriptions                      6,570                      6,800 62007‐Employee Recognition                      1,500                      1,500 62008‐Furniture and Fixtures                      1,000                      1,000 62009‐Software Licensing and Maint Agreements                   39,610                   39,610 63001‐Membership and Certifications                      1,650                      1,650 63002‐Education and Training                 133,400                 133,400 63003‐Trips and Meetings                    20,000                    21,300 65014‐Misc Other Charges                      1,000                      1,000 3003‐Wellness Program                   55,800                   55,610 61013‐Other Contract Services                    37,000                    38,110 61028‐Personnel Services                      9,300                      9,000 62008‐Furniture and Fixtures                      8,000                      7,000 63003‐Trips and Meetings                      1,500                      1,500 Financial Plan Page 442

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 3050‐Insurance ISF              5,527,158              6,066,253 54001‐Workers Comp Insurance              2,069,183              2,355,887 61014‐Liability Insurance              2,547,586              2,625,060 61015‐Other Insurance                 910,389              1,085,306 Non‐Departmental              2,401,694              3,463,325 2007‐Non‐Departmental              2,401,694              3,463,325 51001‐Salaries ‐ Regular                    50,000                    50,000 52001‐Retirement Contributions                    47,960                    48,949 53002‐Retiree Healthcare                      1,922                      2,075 53003‐Unemployment Insurance                    30,000                    30,000 56002‐Misc Employee Reimbursement                    15,000                    15,000 56003‐Contingency Expense              1,388,209              2,440,470 61010‐Ventures and Contingencies                 200,000                 200,000 61013‐Other Contract Services                 385,191                 393,971 62001‐Print and Reproduction                    46,000                    46,000 62003‐Postage                    43,000                    43,000 62007‐Employee Recognition                    25,000                    20,000 62010‐Office Expenses ‐ Other                      6,000                      6,000 62511‐Rents and Leases                 131,612                 135,560 63001‐Membership and Certifications                    18,500                    19,000 63002‐Education and Training                      3,300                      3,300 65013‐Credit Cards Merchant Fees                    10,000                    10,000 Financial Plan Page 443

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 Parks & Recreation              6,222,696              6,363,030 7001‐Recreation Administration              1,086,220              1,110,533 51001‐Salaries ‐ Regular                 573,038                 576,704 51003‐Salaries ‐ Contract                    68,354                    71,942 51004‐Salaries ‐ Temporary                    45,250                    46,382 51010‐Overtime                         800                         800 52001‐Retirement Contributions                    53,439                    54,146 52002‐Retirement PARS ‐ 401                      2,224                      2,224 52003‐PERS Unfunded Liability                 142,429                 156,329 53001‐Employee Group Insurance                    65,310                    67,788 53002‐Retiree Healthcare                      8,001                      8,222 55001‐Medicare                      9,870                      9,991 61001‐Advertising and Public Outreach                     1,000                     1,000 61005‐Data Processing Services                    21,000                    21,000 61008‐Parking                      7,470                      7,470 61011‐Maintenance                      2,500                      1,000 61013‐Other Contract Services                      4,900                      4,900 62001‐Print and Reproduction                      2,400                      2,400 62002‐Office Supplies                    11,800                    11,800 62003‐Postage                         700                         700 62004‐Publications and Subscriptions                         400                         400 62007‐Employee Recognition                      3,600                      3,600 62010‐Office Expenses ‐ Other                    15,000                    15,000 62509‐Misc Materials and Supplies                   24,775                   24,775 63001‐Membership and Certifications                      1,210                      1,210 63002‐Education and Training                      7,750                      7,750 63003‐Trips and Meetings                      1,000                      1,000 65013‐Credit Cards Merchant Fees                    12,000                    12,000 7002‐Recreation Facilities                 392,228                 394,954 51001‐Salaries ‐ Regular                 120,636                 120,636 51004‐Salaries ‐ Temporary                 114,757                 115,903 51010‐Overtime                         400                         400 52001‐Retirement Contributions                    12,235                    12,343 52003‐PERS Unfunded Liability                    37,980                    41,687 53001‐Employee Group Insurance                    30,030                   31,020 53002‐Retiree Healthcare                      2,134                      2,192 55001‐Medicare                      3,375                      3,392 61013‐Other Contract Services                    48,150                    48,850 61014‐Liability Insurance                    10,000                    10,000 62002‐Office Supplies                         800                         800 62509‐Misc Materials and Supplies                    10,000                      6,000 63001‐Membership and Certifications                         330                         330 63002‐Education and Training                      1,400                      1,400 Financial Plan Page 444

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 7003‐Youth Services              1,592,313              1,628,964 51001‐Salaries ‐ Regular                 583,097                 601,307 51004‐Salaries ‐ Temporary                 520,876                 520,876 51010‐Overtime                      2,100                      2,100 52001‐Retirement Contributions                    61,869                    63,606 52003‐PERS Unfunded Liability                 128,179                 140,688 53001‐Employee Group Insurance                    96,468                 100,200 53002‐Retiree Healthcare                      7,201                      7,399 55001‐Medicare                    15,974                    16,238 61001‐Advertising and Public Outreach                         500                         500 61013‐Other Contract Services                    52,950                    52,950 62001‐Print and Reproduction                      1,000                     1,000 62002‐Office Supplies                      1,500                      1,500 62008‐Furniture and Fixtures                      3,500                      3,500 62507‐Public Safety Supplies                      2,610                      2,610 62509‐Misc Materials and Supplies                    53,940                    53,940 62511‐Rents and Leases                    48,600                    48,600 63001‐Membership and Certifications                      1,350                      1,350 63002‐Education and Training                    10,600                    10,600 7004‐Community Services                 644,285                 665,436 51001‐Salaries ‐ Regular                 234,593                 245,833 51004‐Salaries ‐ Temporary                 101,223                 101,616 51010‐Overtime                      2,500                     2,500 52001‐Retirement Contributions                    21,626                    22,588 52003‐PERS Unfunded Liability                    67,623                    74,223 53001‐Employee Group Insurance                    46,470                    48,204 53002‐Retiree Healthcare                      3,799                      3,903 55001‐Medicare                      4,837                      5,004 61001‐Advertising and Public Outreach                      1,800                      1,800 61013‐Other Contract Services                    72,280                    72,280 62002‐Office Supplies                         800                         800 62003‐Postage                         500                         500 62502‐Construction Materials and Supplies                      2,764                      2,714 62508‐Recreation Supplies                    20,500                    20,500 62509‐Misc Materials and Supplies                     9,000                     9,000 62511‐Rents and Leases                    43,900                    43,900 63001‐Membership and Certifications                      1,070                      1,070 63002‐Education and Training                      9,000                      9,000 Financial Plan Page 445

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 7005‐Ranger Service                 941,328                 965,405 51001‐Salaries ‐ Regular                 538,896                 549,123 51004‐Salaries ‐ Temporary                    75,400                    75,400 51010‐Overtime                      5,500                      5,500 52001‐Retirement Contributions                    48,610                    49,606 52003‐PERS Unfunded Liability                 119,642                 131,318 53001‐Employee Group Insurance                    63,126                    65,220 53002‐Retiree Healthcare                      6,721                      6,906 55001‐Medicare                      8,794                      8,942 61013‐Other Contract Services                    29,950                    29,950 62001‐Print and Reproduction                      4,750                      3,500 62502‐Construction Materials and Supplies                    16,250                   16,250 62505‐Machinery and Equipment                      6,000                      6,000 62509‐Misc Materials and Supplies                      9,000                      9,000 63001‐Membership and Certifications                         690                         690 63002‐Education and Training                      8,000                      8,000 7006‐Aquatics                 715,194                 721,012 51001‐Salaries ‐ Regular                    81,703                    81,703 51004‐Salaries ‐ Temporary                 478,711                 480,213 51010‐Overtime                      3,500                      3,500 52001‐Retirement Contributions                    21,032                    21,152 52003‐PERS Unfunded Liability                    29,622                    32,513 53001‐Employee Group Insurance                    24,234                    24,924 53002‐Retiree Healthcare                     1,664                     1,710 55001‐Medicare                      8,103                      8,125 61001‐Advertising and Public Outreach                         600                         600 61013‐Other Contract Services                    47,196                    48,543 62002‐Office Supplies                         600                         600 62505‐Machinery and Equipment                      5,000                      5,000 62506‐Safety Materials and Supplies                      2,000                      2,000 62508‐Recreation Supplies                         700                         700 62509‐Misc Materials and Supplies                      7,200                      6,400 63001‐Membership and Certifications                         330                         330 63002‐Education and Training                     3,000                     3,000 Financial Plan Page 446

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 7007‐Golf Course                 840,627                 866,226 51001‐Salaries ‐ Regular                 291,127                 301,670 51004‐Salaries ‐ Temporary                 101,818                 101,818 51010‐Overtime                      2,500                      2,500 52001‐Retirement Contributions                    25,112                    26,013 52003‐PERS Unfunded Liability                    68,297                    74,963 53001‐Employee Group Insurance                    42,984                    44,664 53002‐Retiree Healthcare                      3,837                      3,942 55001‐Medicare                      5,638                      5,789 61001‐Advertising and Public Outreach                      1,400                      1,400 61005‐Data Processing Services                    11,450                    11,700 61011‐Maintenance                    14,500                    14,500 61013‐Other Contract Services                   26,264                   26,567 61501‐City Water Service                 132,000                 135,000 61502‐City Sewer Service                      3,500                      3,500 61503‐Electric Service                    10,000                    10,000 61504‐Natural Gas Service                         400                         400 61506‐Solid Waste Service                      4,600                      4,600 62002‐Office Supplies                      1,500                      1,500 62501‐Chemicals                    20,000                    20,000 62502‐Construction Materials and Supplies                    30,000                    30,000 62506‐Safety Materials and Supplies                      2,500                      2,500 62509‐Misc Materials and Supplies                   28,400                   28,400 63001‐Membership and Certifications                      1,800                      1,800 63002‐Education and Training                      3,000                      3,000 65013‐Credit Cards Merchant Fees                      8,000                    10,000 7008‐Jack House                   10,500                   10,500 61001‐Advertising and Public Outreach                      3,000                      3,000 62508‐Recreation Supplies                      7,500                      7,500 Financial Plan Page 447

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 Police           25,598,563           27,002,731
8001‐Police Administration              2,781,586              2,836,812 51001‐Salaries ‐ Regular              1,001,234              1,016,561 51010‐Overtime                      2,100                      2,100 52001‐Retirement Contributions                 131,285                 134,254 52002‐Retirement PARS ‐ 401                      2,679                      2,679 52003‐PERS Unfunded Liability                 299,068                 328,255 53001‐Employee Group Insurance                    87,516                    90,672 53002‐Retiree Healthcare                    16,801                    17,263 55001‐Medicare                    14,019                    14,226 61011‐Maintenance                      2,000                      2,000 61013‐Other Contract Services                 829,401                 833,319 61501‐City Water Service                    19,392                   19,392 61502‐City Sewer Service                      7,850                      7,850 61503‐Electric Service                 165,600                 165,600 61504‐Natural Gas Service                    13,100                    13,100 62002‐Office Supplies                      8,700                      8,700 62003‐Postage                      6,900                      6,900 62004‐Publications and Subscriptions                      1,400                      1,400 62007‐Employee Recognition                      9,400                      9,400 62008‐Furniture and Fixtures                      7,700                      7,700 62010‐Office Expenses ‐ Other                      9,600                      9,600 62507‐Public Safety Supplies                      9,200                      9,200 62509‐Misc Materials and Supplies                     4,300                     4,300 63001‐Membership and Certifications                      4,540                      4,540 63002‐Education and Training                 123,200                 123,200 63003‐Trips and Meetings                      4,100                      4,100 65013‐Credit Cards Merchant Fees                         500                         500 Financial Plan Page 448

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 8002‐Patrol           13,692,074           14,629,941
51001‐Salaries ‐ Regular              7,507,034              7,971,500 51010‐Overtime                 307,065                 307,065 51018‐Call Back                 203,705                 203,705 52001‐Retirement Contributions              1,034,227              1,095,573 52003‐PERS Unfunded Liability              3,307,480              3,630,266 53001‐Employee Group Insurance                 857,832                 894,276 53002‐Retiree Healthcare                 185,808                 190,921 55001‐Medicare                 102,201                 108,579 61011‐Maintenance                    32,300                    32,300 61013‐Other Contract Services                      1,656                      1,656 62504‐Fuel                      1,000                      1,000 62505‐Machinery and Equipment                          ‐                   81,900 62506‐Safety Materials and Supplies                    81,266                    40,700 62507‐Public Safety Supplies                    59,500                    59,500 62509‐Misc Materials and Supplies                    11,000                    11,000 8003‐Investigations              4,073,125              4,267,933 51001‐Salaries ‐ Regular              2,197,440              2,282,011 51010‐Overtime                 198,837                 198,837 51017‐Standby                    21,289                    21,289 51018‐Call Back                    44,683                    44,683 52001‐Retirement Contributions                 357,172                 370,217 52003‐PERS Unfunded Liability                 870,467                 955,418 53001‐Employee Group Insurance                 236,676                 246,408 53002‐Retiree Healthcare                   48,901                   50,247 55001‐Medicare                    30,060                    31,223 61013‐Other Contract Services                    25,500                    25,500 62507‐Public Safety Supplies                    15,900                    15,900 62509‐Misc Materials and Supplies                      3,000                      3,000 62512‐Investigative Supplies                    23,200                    23,200 Financial Plan Page 449

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 8004‐Police Support Services              3,703,803              3,864,439 51001‐Salaries ‐ Regular              2,254,862              2,353,485 51010‐Overtime                    25,895                    25,895 51018‐Call Back                    37,677                    37,677 52001‐Retirement Contributions                 165,993                 172,998 52003‐PERS Unfunded Liability                 628,501                 689,839 53001‐Employee Group Insurance                 251,184                 260,652 53002‐Retiree Healthcare                    35,308                    36,280 55001‐Medicare                    31,208                    32,579 61005‐Data Processing Services                    30,700                    30,700 61013‐Other Contract Services                 230,475                 212,335 61505‐Communication Service                      2,000                      2,000 62002‐Office Supplies                     8,000                     8,000 62509‐Misc Materials and Supplies                      2,000                      2,000 8005‐Neighborhood Services                 327,043                 332,286 51001‐Salaries ‐ Regular                 126,550                 126,550 51004‐Salaries ‐ Temporary                    90,244                    92,496 52001‐Retirement Contributions                      8,345                      8,345 52003‐PERS Unfunded Liability                    29,843                    32,756 53001‐Employee Group Insurance                      9,480                      9,480 53002‐Retiree Healthcare                      1,677                      1,723 55001‐Medicare                      3,104                      3,136 61001‐Advertising and Public Outreach                    20,000                    20,000 61013‐Other Contract Services                   27,000                   27,000 62509‐Misc Materials and Supplies                      5,800                      5,800 63002‐Education and Training                      5,000                      5,000 8006‐Traffic Safety              1,020,933              1,071,320 51001‐Salaries ‐ Regular                 509,048                 529,427 51010‐Overtime                    59,370                    59,370 51018‐Call Back                    21,414                    21,414 52001‐Retirement Contributions                    91,807                    95,464 52003‐PERS Unfunded Liability                 234,555                 257,446 53001‐Employee Group Insurance                    62,736                    65,556 53002‐Retiree Healthcare                    13,177                    13,539 55001‐Medicare                      6,926                      7,203 61011‐Maintenance                     2,900                     2,900 62010‐Office Expenses ‐ Other                         800                         800 62504‐Fuel                      7,000                      7,000 62505‐Machinery and Equipment                      2,400                      2,400 62506‐Safety Materials and Supplies                      3,300                      3,300 62509‐Misc Materials and Supplies                      5,500                      5,500 Financial Plan Page 450

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 Public Works           27,371,164           28,950,497
5001‐Public Works Administration              1,519,014              1,559,656 51001‐Salaries ‐ Regular                 989,805                 999,766 51010‐Overtime                      1,200                      1,200 52001‐Retirement Contributions                    74,411                    75,187 52002‐Retirement PARS ‐ 401                      2,224                      2,224 52003‐PERS Unfunded Liability                 249,559                 273,914 53001‐Employee Group Insurance                 124,254                 129,276 53002‐Retiree Healthcare                    14,020                    14,406 55001‐Medicare                    14,150                    14,292 61008‐Parking                         540                         540 61013‐Other Contract Services                      5,000                      5,000 62001‐Print and Reproduction                     1,000                     1,000 62002‐Office Supplies                      4,000                      4,000 62004‐Publications and Subscriptions                         228                         228 62007‐Employee Recognition                      6,000                      6,000 62009‐Software Licensing and Maint Agreements                      1,605                      1,605 62509‐Misc Materials and Supplies                      2,800                      2,800 63001‐Membership and Certifications                    19,719                    19,719 63002‐Education and Training                      7,500                      7,500 63003‐Trips and Meetings                      1,000                      1,000 Financial Plan Page 451

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 5002‐Parks Maintenance              4,189,120              4,275,368 51001‐Salaries ‐ Regular              1,139,361              1,184,325 51004‐Salaries ‐ Temporary                 145,194                 148,130 51010‐Overtime                    18,500                    18,500 51017‐Standby                    18,500                    18,500 51018‐Call Back                      1,000                      1,000 52001‐Retirement Contributions                 111,516                 115,838 52003‐PERS Unfunded Liability                 236,642                 259,736 53001‐Employee Group Insurance                 235,296                 244,368 53002‐Retiree Healthcare                    13,294                    13,660 55001‐Medicare                    18,044                    18,739 61011‐Maintenance                      9,000                      9,000 61013‐Other Contract Services                 974,330              1,002,914 61501‐City Water Service                 784,974                 749,913 61502‐City Sewer Service                    72,326                    73,772 61503‐Electric Service                 154,188                 157,272 61506‐Solid Waste Service                    29,676                    30,269 62001‐Print and Reproduction                      1,500                      1,500 62002‐Office Supplies                         500                         500 62004‐Publications and Subscriptions                         300                         300 62009‐Software Licensing and Maint Agreements                      4,769                      4,923 62501‐Chemicals                    15,000                    17,000 62502‐Construction Materials and Supplies                    28,250                    28,250 62503‐Equipment Maintenance Supplies                   30,000                   30,000 62506‐Safety Materials and Supplies                      9,000                      9,000 62509‐Misc Materials and Supplies                 124,500                 124,500 63001‐Membership and Certifications                      3,460                      3,460 63002‐Education and Training                    10,000                    10,000 Financial Plan Page 452

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 5003‐Swim Center Maintenance                 694,394                 705,891 51001‐Salaries ‐ Regular                    86,156                    86,156 51004‐Salaries ‐ Temporary                    23,442                    23,442 51010‐Overtime                      4,500                      4,500 51017‐Standby                      5,400                      5,400 51018‐Call Back                         700                         700 52001‐Retirement Contributions                    10,512                    10,512 52003‐PERS Unfunded Liability                    19,819                    21,754 53001‐Employee Group Insurance                      9,480                      9,480 53002‐Retiree Healthcare                      1,113                      1,144 55001‐Medicare                      1,565                      1,565 61009‐Regulatory Fees                      1,000                      1,000 61013‐Other Contract Services                   20,300                   20,300 61501‐City Water Service                    86,349                    88,076 61502‐City Sewer Service                    85,307                    87,013 61503‐Electric Service                    99,033                 101,013 61504‐Natural Gas Service                    94,597                    96,489 61506‐Solid Waste Service                      3,121                      3,184 62501‐Chemicals                 100,000                 102,164 62502‐Construction Materials and Supplies                      5,900                      5,900 62503‐Equipment Maintenance Supplies                    22,300                    22,300 62506‐Safety Materials and Supplies                      1,100                      1,100 62509‐Misc Materials and Supplies                     9,500                     9,500 63002‐Education and Training                      3,200                      3,200 5004‐Urban Forest Services                 214,065                 225,075 51001‐Salaries ‐ Regular                 117,128                 123,186 51010‐Overtime                      4,500                      4,500 52001‐Retirement Contributions                    11,213                    11,804 52003‐PERS Unfunded Liability                    37,959                    41,663 53001‐Employee Group Insurance                      8,220                      8,592 53002‐Retiree Healthcare                      2,132                      2,191 55001‐Medicare                      1,669                      1,757 61011‐Maintenance                         500                         500 61013‐Other Contract Services                      4,750                      4,750 62001‐Print and Reproduction                        250                        250 62002‐Office Supplies                         100                         100 62009‐Software Licensing and Maint Agreements                      4,640                      4,779 62506‐Safety Materials and Supplies                      3,244                      3,244 62509‐Misc Materials and Supplies                    11,479                    11,479 63001‐Membership and Certifications                      1,780                      1,780 63002‐Education and Training                      4,500                      4,500 Financial Plan Page 453

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 5005‐Facilities Maintenance              1,532,058              1,559,179 51001‐Salaries ‐ Regular                 424,779                 429,960 51010‐Overtime                      8,000                      8,000 51017‐Standby                    14,300                    14,300 51018‐Call Back                      7,000                      7,000 52001‐Retirement Contributions                    37,911                    38,415 52003‐PERS Unfunded Liability                 100,408                 110,208 53001‐Employee Group Insurance                    76,614                    80,028 53002‐Retiree Healthcare                      5,641                      5,796 55001‐Medicare                      6,112                      6,187 61009‐Regulatory Fees                         450                         450 61013‐Other Contract Services                 318,300                 318,300 61501‐City Water Service                   28,682                   29,256 61502‐City Sewer Service                    26,788                    27,324 61503‐Electric Service                 317,419                 323,767 61504‐Natural Gas Service                    36,120                    36,843 61506‐Solid Waste Service                    42,998                    43,858 62001‐Print and Reproduction                         500                         500 62002‐Office Supplies                         500                         500 62009‐Software Licensing and Maint Agreements                      4,771                      4,923 62502‐Construction Materials and Supplies                    17,800                    17,800 62503‐Equipment Maintenance Supplies                      5,300                      5,300 62506‐Safety Materials and Supplies                     3,064                     3,064 62509‐Misc Materials and Supplies                    44,100                    42,900 63002‐Education and Training                      3,000                      3,000 63003‐Trips and Meetings                      1,500                      1,500 Financial Plan Page 454

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 5006‐Street/Sidewalk Maintenance              2,623,508              2,682,950 51001‐Salaries ‐ Regular              1,070,415              1,096,250 51004‐Salaries ‐ Temporary                    46,883                    46,883 51010‐Overtime                      9,700                      9,700 51017‐Standby                    18,500                    18,500 51018‐Call Back                      2,500                      2,500 52001‐Retirement Contributions                    96,627                    98,876 52003‐PERS Unfunded Liability                 227,356                 249,544 53001‐Employee Group Insurance                 188,304                 196,608 53002‐Retiree Healthcare                    12,772                    13,124 55001‐Medicare                    16,011                    16,386 61013‐Other Contract Services                 511,500                 511,500 61506‐Solid Waste Service                   25,000                   25,000 62001‐Print and Reproduction                      3,000                      3,000 62002‐Office Supplies                         100                         100 62009‐Software Licensing and Maint Agreements                      4,640                      4,779 62502‐Construction Materials and Supplies                 290,000                 290,000 62506‐Safety Materials and Supplies                      8,400                      8,400 62509‐Misc Materials and Supplies                    87,500                    87,500 63002‐Education and Training                      4,300                      4,300 5007‐Traffic Signals and Lighting                 662,397                 676,702 51001‐Salaries ‐ Regular                 177,884                 180,831 51010‐Overtime                     2,400                      2,400 51017‐Standby                    13,300                    13,300 51018‐Call Back                      1,200                      1,200 52001‐Retirement Contributions                    17,056                    17,343 52003‐PERS Unfunded Liability                    40,075                    43,986 53001‐Employee Group Insurance                    43,980                    45,960 53002‐Retiree Healthcare                      2,251                      2,313 55001‐Medicare                      2,539                      2,582 61013‐Other Contract Services                    15,000                    15,000 61503‐Electric Service                 264,180                 269,000 62002‐Office Supplies                         100                         100 62009‐Software Licensing and Maint Agreements                    13,000                   13,255 62506‐Safety Materials and Supplies                      1,032                      1,032 62509‐Misc Materials and Supplies                    65,400                    65,400 63002‐Education and Training                      3,000                      3,000 Financial Plan Page 455

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 5008‐Fleet              1,532,870              1,552,683 51001‐Salaries ‐ Regular                 440,613                 448,415 51010‐Overtime                      9,500                      9,500 51018‐Call Back                      1,000                      1,000 52001‐Retirement Contributions                    39,436                    40,186 52003‐PERS Unfunded Liability                    86,660                    95,117 53001‐Employee Group Insurance                    77,448                    80,004 53002‐Retiree Healthcare                      4,868                      5,002 55001‐Medicare                      6,334                      6,447 61009‐Regulatory Fees                    12,000                    12,000 61013‐Other Contract Services                 186,000                 186,000 62002‐Office Supplies                      1,000                      1,000 62007‐Employee Recognition                         250                        250 62009‐Software Licensing and Maint Agreements                    14,362                    14,362 62501‐Chemicals                    14,500                    14,500 62503‐Equipment Maintenance Supplies                 192,700                 192,700 62504‐Fuel                 420,000                 420,000 62506‐Safety Materials and Supplies                      3,100                      3,100 62509‐Misc Materials and Supplies                    16,700                    16,700 63001‐Membership and Certifications                      1,500                      1,500 63002‐Education and Training                      4,500                      4,500 63003‐Trips and Meetings                         400                         400 5009‐CIP Project Eng              3,186,264             3,301,959 51001‐Salaries ‐ Regular              2,062,466              2,109,487 51004‐Salaries ‐ Temporary                    82,525                    92,765 51010‐Overtime                      6,900                      6,900 52001‐Retirement Contributions                 178,687                 182,625 52003‐PERS Unfunded Liability                 455,497                 499,950 53001‐Employee Group Insurance                 209,860                 218,341 53002‐Retiree Healthcare                    25,589                    26,293 55001‐Medicare                    30,153                    30,842 61001‐Advertising and Public Outreach                      1,800                      1,800 61008‐Parking                      4,860                      4,860 61009‐Regulatory Fees                      2,510                      2,510 61013‐Other Contract Services                    20,000                    20,000 62001‐Print and Reproduction                     2,500                     2,500 62002‐Office Supplies                      3,500                      3,500 62009‐Software Licensing and Maint Agreements                    65,574                    65,744 62506‐Safety Materials and Supplies                      3,026                      3,026 62509‐Misc Materials and Supplies                      5,000                      5,000 63001‐Membership and Certifications                      3,817                      3,817 63002‐Education and Training                    18,500                    18,500 63003‐Trips and Meetings                      3,500                      3,500 Financial Plan Page 456

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 5010‐Transportation Plan and Eng                 939,215                 974,106 51001‐Salaries ‐ Regular                 575,130                 591,292 51004‐Salaries ‐ Temporary                    41,579                    42,619 51010‐Overtime                      1,600                      1,600 52001‐Retirement Contributions                    51,210                    52,690 52003‐PERS Unfunded Liability                 130,298                 143,014 53001‐Employee Group Insurance                    70,794                    73,836 53002‐Retiree Healthcare                      7,320                      7,521 55001‐Medicare                      8,938                      9,188 61001‐Advertising and Public Outreach                      2,000                      2,000 61008‐Parking                      2,160                      2,160 61013‐Other Contract Services                    15,000                   15,000 62001‐Print and Reproduction                         250                         250 62002‐Office Supplies                      1,600                      1,600 62004‐Publications and Subscriptions                      1,500                      1,500 62009‐Software Licensing and Maint Agreements                    17,000                    17,000 62506‐Safety Materials and Supplies                         416                         416 62509‐Misc Materials and Supplies                      1,700                      1,700 63001‐Membership and Certifications                      1,820                      1,820 63002‐Education and Training                      7,100                      7,100 63003‐Trips and Meetings                      1,800                      1,800 5011‐Active Transportation                265,487                271,680 51001‐Salaries ‐ Regular                 169,288                 171,148 51004‐Salaries ‐ Temporary                      2,822                      2,892 52001‐Retirement Contributions                    11,408                    11,543 52003‐PERS Unfunded Liability                    38,023                    41,733 53001‐Employee Group Insurance                    16,597                    16,913 53002‐Retiree Healthcare                      2,136                      2,195 55001‐Medicare                      2,453                      2,481 61001‐Advertising and Public Outreach                    10,000                    10,000 62001‐Print and Reproduction                         250                         250 62002‐Office Supplies                         300                         300 62009‐Software Licensing and Maint Agreements                        431                        444 63001‐Membership and Certifications                    10,000                    10,000 63002‐Education and Training                         280                         280 63003‐Trips and Meetings                      1,500                      1,500 Financial Plan Page 457

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 5101‐Parking Admin              3,950,382              4,049,250 51001‐Salaries ‐ Regular              1,206,515              1,246,538 51004‐Salaries ‐ Temporary                 364,435                 377,750 51010‐Overtime                      8,000                      8,000 51017‐Standby                      4,500                      4,500 51018‐Call Back                         800                         800 52001‐Retirement Contributions                 116,970                 120,339 52003‐PERS Unfunded Liability                 271,504                 298,001 53001‐Employee Group Insurance                 189,251                 197,373 53002‐Retiree Healthcare                    15,253                    15,672 55001‐Medicare                    22,623                    23,396 61001‐Advertising and Public Outreach                    30,200                    20,200 61005‐Data Processing Services                   90,200                   90,200 61008‐Parking                    15,000                    15,000 61011‐Maintenance                    96,000                    96,000 61013‐Other Contract Services                 638,380                 641,340 61501‐City Water Service                      5,950                      6,936 61502‐City Sewer Service                         600                         700 61503‐Electric Service                 269,280                 274,666 61506‐Solid Waste Service                      6,426                      7,344 62001‐Print and Reproduction                    66,000                    63,000 62002‐Office Supplies                      5,000                      5,000 62009‐Software Licensing and Maint Agreements                    10,000                    19,000 62503‐Equipment Maintenance Supplies                   16,000                   16,000 62509‐Misc Materials and Supplies                    26,525                    26,525 63001‐Membership and Certifications                      1,320                      1,320 63002‐Education and Training                      8,500                      8,500 63003‐Trips and Meetings                      7,500                      7,500 65013‐Credit Cards Merchant Fees                 457,650                 457,650 Financial Plan Page 458

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 5201‐Transit Ops and Maint              5,992,190              7,045,797 51001‐Salaries ‐ Regular                 242,965                 250,628 51004‐Salaries ‐ Temporary                    21,393                    21,393 51010‐Overtime                      2,500                      2,500 52001‐Retirement Contributions                    19,797                    20,382 52003‐PERS Unfunded Liability                    50,802                    55,760 53001‐Employee Group Insurance                    43,143                    44,980 53002‐Retiree Healthcare                      2,854                      2,932 55001‐Medicare                      3,803                      3,913 61001‐Advertising and Public Outreach                    30,000                    20,000 61003‐Auditing and Accounting Fees                      5,600                      5,600 61005‐Data Processing Services                   70,150                   70,150 61008‐Parking                      1,620                      1,620 61009‐Regulatory Fees                      4,800                      9,600 61011‐Maintenance                 382,180                 346,615 61013‐Other Contract Services                    72,100                    72,100 61016‐Purchased Transportation              4,481,353              5,580,494 61503‐Electric Service                    22,500                    22,500 62001‐Print and Reproduction                    25,000                    25,000 62002‐Office Supplies                      1,000                      1,000 62008‐Furniture and Fixtures                      1,000                      1,000 62009‐Software Licensing and Maint Agreements                    51,000                    51,000 62504‐Fuel                 440,000                 420,000 62509‐Misc Materials and Supplies                      2,500                      2,500 63001‐Membership and Certifications                      3,330                      3,330 63002‐Education and Training                      1,000                      1,000 63003‐Trips and Meetings                      6,000                      6,000 65013‐Credit Cards Merchant Fees                      3,800                      3,800 5302 ‐ Flood Control                   70,200                   70,200 61013‐Other Contract Services                    70,200                    70,200 Financial Plan Page 459

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 Utilities           40,969,852           37,735,922
5301‐Stormwater              1,007,153              1,038,550 51001‐Salaries ‐ Regular                 563,304                 577,777 51010‐Overtime                      4,600                      4,600 51018‐Call Back                         300                         300 52001‐Retirement Contributions                    49,813                    51,045 52003‐PERS Unfunded Liability                 137,985                 151,451 53001‐Employee Group Insurance                    86,007                    89,235 53002‐Retiree Healthcare                      7,752                      7,965 55001‐Medicare                      8,087                      8,297 61005‐Data Processing Services                      1,000                      1,000 61009‐Regulatory Fees                    18,500                    18,500 61013‐Other Contract Services                    61,200                    59,700 61503‐Electric Service                        500                        500 62002‐Office Supplies                      1,000                      1,000 62009‐Software Licensing and Maint Agreements                    16,505                    16,505 62503‐Equipment Maintenance Supplies                      2,400                      2,400 62506‐Safety Materials and Supplies                      2,850                      2,850 62509‐Misc Materials and Supplies                    34,675                    34,675 63001‐Membership and Certifications                      3,175                      3,250 63002‐Education and Training                      7,500                      7,500 Financial Plan Page 460

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 6001‐Water Administration/Engineering              1,917,575              1,941,752 51001‐Salaries ‐ Regular                 814,609                 825,471 51003‐Salaries ‐ Contract                    54,893                 112,294 51004‐Salaries ‐ Temporary                    47,540                    47,540 51010‐Overtime                      5,000                      5,000 52001‐Retirement Contributions                    64,909                    71,375 52002‐Retirement PARS ‐ 401                         890                         890 52003‐PERS Unfunded Liability                 169,999                 186,590 53001‐Employee Group Insurance                    99,998                 111,927 53002‐Retiree Healthcare                      9,550                      9,813 55001‐Medicare                    12,538                    13,528 61001‐Advertising and Public Outreach                    95,000                    95,000 61007‐Legal Services                   90,000                   90,000 61008‐Parking                      8,640                      9,072 61013‐Other Contract Services                 144,892                    73,796 61501‐City Water Service                         400                         400 61502‐City Sewer Service                         330                         350 61503‐Electric Service                      3,785                      3,785 61504‐Natural Gas Service                         900                      1,000 61505‐Communication Service                      2,500                      2,750 62002‐Office Supplies                      2,500                      2,500 62004‐Publications and Subscriptions                      2,500                      2,500 62007‐Employee Recognition                      1,100                      1,100 62009‐Software Licensing and Maint Agreements                   41,222                   41,222 62010‐Office Expenses ‐ Other                    13,000                      2,750 62506‐Safety Materials and Supplies                      1,950                      1,950 63001‐Membership and Certifications                      9,390                      9,610 63002‐Education and Training                    15,050                    15,050 65013‐Credit Cards Merchant Fees                 204,490                 204,490 Financial Plan Page 461

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 6002‐Water Source of Supply           17,204,493           13,638,854 51001‐Salaries ‐ Regular                 134,440                 135,141 52001‐Retirement Contributions                    12,421                    12,489 52003‐PERS Unfunded Liability                    30,298                    33,254 53001‐Employee Group Insurance                    22,113                    23,089 53002‐Retiree Healthcare                      1,702                      1,749 55001‐Medicare                      1,913                      1,923 61012‐Water Supply                    60,300                    62,712 61013‐Other Contract Services                    17,000                    12,000 61017‐Nacimiento Contribution for Operations & Maintenance              1,659,694              1,726,082 61018‐Nacimiento Contribution for Electric Service                 953,303             1,273,959 61019‐Nacimiento Contribution for Capital Projects                 816,851                 464,796 61020‐Nacimiento Contribution for Debt Service              4,622,040              4,615,844 61021‐Salinas Contribution for Operations & Maintenance              1,334,391              1,387,767 61022‐Salinas Contribution for Electric Service                 275,000                 164,594 61023‐Salinas Contribution for Capital Projects              5,010,000              1,042,900 61024‐Whale Rock Contribution for Operations & Maintenance                 778,947                 777,909 61025‐Whale Rock Contribution for Electric Service                 306,306                 292,383 61026‐Whale Rock Contribution for Capital Projects                 866,875              1,318,362 61027‐Control Systems                      9,100                      9,100 61503‐Electric Service                 107,000                 118,000 62501‐Chemicals                    45,000                    45,000 62503‐Equipment Maintenance Supplies                      7,000                      7,000 62509‐Misc Materials and Supplies                 131,000                 111,000 63001‐Membership and Certifications                      1,800                      1,800 Financial Plan Page 462

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 6003‐Water Treatment              4,731,336              4,816,700 51001‐Salaries ‐ Regular              1,465,227              1,506,461 51004‐Salaries ‐ Temporary                    42,619                    43,680 51010‐Overtime                    70,992                    70,992 51017‐Standby                    19,500                    19,500 51018‐Call Back                    10,000                    10,000 52001‐Retirement Contributions                 133,626                 140,533 52003‐PERS Unfunded Liability                 315,861                 346,687 53001‐Employee Group Insurance                 220,628                 238,645 53002‐Retiree Healthcare                    17,744                    18,233 55001‐Medicare                    21,212                    22,258 61005‐Data Processing Services                      1,100                      1,100 61013‐Other Contract Services                 555,757                 504,891 61027‐Control Systems                    14,543                    14,543 61503‐Electric Service                 850,000                 850,000 61505‐Communication Service                      6,500                      7,150 61506‐Solid Waste Service                      7,333                      7,333 62002‐Office Supplies                      3,020                      3,020 62004‐Publications and Subscriptions                         300                         300 62007‐Employee Recognition                      1,300                      1,300 62009‐Software Licensing and Maint Agreements                         260                         260 62501‐Chemicals                 732,504                 747,504 62502‐Construction Materials and Supplies                    35,500                    36,500 62503‐Equipment Maintenance Supplies                   90,450                 112,950 62506‐Safety Materials and Supplies                    29,560                    29,560 62509‐Misc Materials and Supplies                    61,800                    59,300 63001‐Membership and Certifications                      3,500                      3,500 63002‐Education and Training                    20,500                    20,500 Financial Plan Page 463

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 6004‐Water Distribution              2,164,225              2,228,890 51001‐Salaries ‐ Regular              1,037,005              1,058,432 51010‐Overtime                    25,000                    27,000 51017‐Standby                    19,000                    19,000 51018‐Call Back                    45,000                    45,000 52001‐Retirement Contributions                    95,951                    98,023 52003‐PERS Unfunded Liability                 243,840                 267,637 53001‐Employee Group Insurance                 155,741                 162,597 53002‐Retiree Healthcare                    13,698                    14,075 55001‐Medicare                    14,864                    15,173 61005‐Data Processing Services                      9,786                      9,786 61011‐Maintenance                      1,000                      1,000 61013‐Other Contract Services                 120,918                 121,238 61027‐Control Systems                    24,997                    26,198 61503‐Electric Service                    45,738                    50,312 61505‐Communication Service                    17,300                    19,030 62002‐Office Supplies                      1,550                      1,550 62003‐Postage                         150                         150 62007‐Employee Recognition                      1,300                      1,300 62008‐Furniture and Fixtures                         300                         300 62010‐Office Expenses ‐ Other                      2,000                      2,000 62501‐Chemicals                         300                         300 62502‐Construction Materials and Supplies                 175,099                 175,099 62503‐Equipment Maintenance Supplies                    23,000                    23,000 62506‐Safety Materials and Supplies                   15,798                   15,798 62509‐Misc Materials and Supplies                    42,990                    42,990 63001‐Membership and Certifications                      4,400                      4,400 63002‐Education and Training                    27,500                    27,500 Financial Plan Page 464

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 6005‐Water Resources                 698,174                 710,971 51001‐Salaries ‐ Regular                 420,171                 420,890 51010‐Overtime                      5,000                      5,000 52001‐Retirement Contributions                    36,746                    36,816 52003‐PERS Unfunded Liability                    93,537                 102,666 53001‐Employee Group Insurance                    54,624                    57,048 53002‐Retiree Healthcare                      5,255                      5,399 55001‐Medicare                      6,051                      6,061 61005‐Data Processing Services                      6,466                      6,466 61013‐Other Contract Services                    15,000                    15,000 61505‐Communication Service                      3,000                      3,300 62001‐Print and Reproduction                      1,000                      1,000 62002‐Office Supplies                        600                        600 62003‐Postage                      2,500                      2,500 62007‐Employee Recognition                         400                         400 62506‐Safety Materials and Supplies                      1,425                      1,425 62509‐Misc Materials and Supplies                    32,700                    32,700 63001‐Membership and Certifications                      7,700                      7,700 63002‐Education and Training                      5,000                      5,000 63003‐Trips and Meetings                      1,000                      1,000 Financial Plan Page 465

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 6101‐Wastewater Admin and Eng              2,012,642              2,045,436 51001‐Salaries ‐ Regular                 933,893                 948,211 51003‐Salaries ‐ Contract                    54,893                 112,294 51004‐Salaries ‐ Temporary                    49,442                    49,442 51010‐Overtime                      5,000                      5,000 52001‐Retirement Contributions                    80,288                    87,031 52002‐Retirement PARS ‐ 401                      1,112                      1,112 52003‐PERS Unfunded Liability                 203,059                 222,876 53001‐Employee Group Insurance                 119,120                 131,794 53002‐Retiree Healthcare                    11,407                    11,721 55001‐Medicare                    14,942                    15,982 61001‐Advertising and Public Outreach                   50,000                   50,000 61007‐Legal Services                    75,000                    50,000 61008‐Parking                      5,400                      5,670 61013‐Other Contract Services                    82,563                    37,233 61028‐Personnel Services                    20,100                    20,100 61501‐City Water Service                         400                         400 61502‐City Sewer Service                         330                         350 61503‐Electric Service                      3,785                      3,785 61504‐Natural Gas Service                         900                      1,000 61505‐Communication Service                      3,000                      3,300 62002‐Office Supplies                      2,500                      2,500 62004‐Publications and Subscriptions                      2,500                      2,500 62007‐Employee Recognition                     1,100                     1,100 62009‐Software Licensing and Maint Agreements                    38,410                    38,785 62010‐Office Expenses ‐ Other                    13,000                      2,750 62506‐Safety Materials and Supplies                      2,150                      2,150 63001‐Membership and Certifications                    16,610                    16,610 63002‐Education and Training                    17,250                    17,250 65013‐Credit Cards Merchant Fees                 204,490                 204,490 Financial Plan Page 466

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 6102‐Wastewater Collection              1,789,332              1,825,081 51001‐Salaries ‐ Regular                 932,059                 945,318 51010‐Overtime                      7,000                      7,500 51017‐Standby                    16,000                    16,500 51018‐Call Back                    34,000                    34,500 52001‐Retirement Contributions                    87,445                    88,650 52003‐PERS Unfunded Liability                 188,892                 207,327 53001‐Employee Group Insurance                 147,629                 153,665 53002‐Retiree Healthcare                    10,612                    10,904 55001‐Medicare                    13,440                    13,632 61009‐Regulatory Fees                      5,200                      5,260 61013‐Other Contract Services                    57,700                    57,800 61027‐Control Systems                    12,200                   12,450 61503‐Electric Service                    39,098                    39,098 61504‐Natural Gas Service                      1,125                      1,125 61505‐Communication Service                    14,500                    14,500 62002‐Office Supplies                      2,500                      2,500 62007‐Employee Recognition                         900                         900 62009‐Software Licensing and Maint Agreements                    36,060                    36,380 62010‐Office Expenses ‐ Other                      1,500                      3,500 62502‐Construction Materials and Supplies                    72,775                    73,775 62503‐Equipment Maintenance Supplies                    31,763                    31,763 62506‐Safety Materials and Supplies                    12,960                   12,960 62509‐Misc Materials and Supplies                    26,800                    26,800 63001‐Membership and Certifications                      5,275                      5,275 63002‐Education and Training                    31,400                    22,500 63003‐Trips and Meetings                         500                         500 Financial Plan Page 467

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 6103‐Environmental Programs                 460,245                 352,699 51001‐Salaries ‐ Regular                 149,937                 157,836 51010‐Overtime                      4,000                      1,500 52001‐Retirement Contributions                    14,604                    15,373 52003‐PERS Unfunded Liability                    63,751                    69,973 53001‐Employee Group Insurance                    21,948                    22,898 53002‐Retiree Healthcare                      3,581                      3,680 55001‐Medicare                      2,174                      2,289 61001‐Advertising and Public Outreach                      2,000                      2,000 61013‐Other Contract Services                 173,200                    53,600 61505‐Communication Service                      3,000                      3,000 62001‐Print and Reproduction                         500                        500 62002‐Office Supplies                      3,000                      1,000 62004‐Publications and Subscriptions                      1,000                      1,000 62007‐Employee Recognition                         200                         200 62009‐Software Licensing and Maint Agreements                      6,000                      6,500 62506‐Safety Materials and Supplies                      1,100                      1,100 62509‐Misc Materials and Supplies                      2,750                      2,750 63001‐Membership and Certifications                      1,000                      1,000 63002‐Education and Training                      6,000                      6,000 63003‐Trips and Meetings                         500                         500 Financial Plan Page 468

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 6104‐Water Resource Recovery              5,299,236              5,387,774 51001‐Salaries ‐ Regular              1,368,249              1,382,511 51010‐Overtime                    37,000                    37,000 51017‐Standby                    19,500                    19,500 51018‐Call Back                    12,500                    12,500 52001‐Retirement Contributions                 128,148                 129,536 52003‐PERS Unfunded Liability                 314,327                 345,003 53001‐Employee Group Insurance                 174,716                 181,916 53002‐Retiree Healthcare                    17,658                    18,144 55001‐Medicare                    19,654                    19,861 61009‐Regulatory Fees                    97,955                    93,933 61013‐Other Contract Services                 972,150                 997,150 61501‐City Water Service                     7,100                     7,100 61502‐City Sewer Service                      7,000                      7,000 61503‐Electric Service              1,148,000              1,148,000 61504‐Natural Gas Service                    27,000                    27,000 61505‐Communication Service                    12,000                    12,000 61506‐Solid Waste Service                    30,000                    30,000 62002‐Office Supplies                    18,500                    18,500 62007‐Employee Recognition                      1,300                      1,300 62009‐Software Licensing and Maint Agreements                    34,000                    34,000 62501‐Chemicals                 568,100                 600,440 62502‐Construction Materials and Supplies                    17,000                    17,000 62503‐Equipment Maintenance Supplies                 182,500                 167,500 62506‐Safety Materials and Supplies                    31,880                    27,880 62509‐Misc Materials and Supplies                    20,000                    20,000 63001‐Membership and Certifications                      7,000                      7,000 63002‐Education and Training                    26,000                    26,000 Financial Plan Page 469

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 6105‐Utility Billing                 699,927                 714,000 51001‐Salaries ‐ Regular                 184,730                 192,062 51010‐Overtime                      3,000                      3,000 52001‐Retirement Contributions                    17,993                    18,707 52003‐PERS Unfunded Liability                    31,314                    34,370 53001‐Employee Group Insurance                    26,814                    27,876 53002‐Retiree Healthcare                      1,759                      1,808 55001‐Medicare                      2,679                      2,785 61005‐Data Processing Services                    60,000                    61,600 61013‐Other Contract Services                 247,280                 247,280 62001‐Print and Reproduction                    32,545                    32,622 62002‐Office Supplies                         500                         500 62003‐Postage                   85,814                   85,891 62007‐Employee Recognition                         300                         300 62505‐Machinery and Equipment                         750                         750 62509‐Misc Materials and Supplies                         250                         250 63002‐Education and Training                      3,000                      3,000 63003‐Trips and Meetings                      1,200                      1,200 6106‐Water Quality Lab                 860,110                 883,530 51001‐Salaries ‐ Regular                 411,007                 425,244 51010‐Overtime                      9,000                      9,000 52001‐Retirement Contributions                    35,917                    37,142 52003‐PERS Unfunded Liability                    92,654                 101,697 53001‐Employee Group Insurance                   68,970                   72,077 53002‐Retiree Healthcare                      5,205                      5,348 55001‐Medicare                      5,890                      6,095 61009‐Regulatory Fees                      8,000                      8,500 61013‐Other Contract Services                 142,790                 136,550 61505‐Communication Service                      2,800                      3,000 62002‐Office Supplies                      1,200                      1,200 62004‐Publications and Subscriptions                         450                         450 62007‐Employee Recognition                         500                         500 62506‐Safety Materials and Supplies                      5,350                      5,350 62509‐Misc Materials and Supplies                    53,500                    53,500 63001‐Membership and Certifications                     4,877                     4,877 63002‐Education and Training                    12,000                    13,000 Financial Plan Page 470

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 6107‐Solid Waste Recycling                 374,511                 391,662 51001‐Salaries ‐ Regular                 207,689                 217,362 51010‐Overtime                      4,000                      4,000 52001‐Retirement Contributions                    16,711                    17,507 52003‐PERS Unfunded Liability                    46,286                    50,803 53001‐Employee Group Insurance                    43,980                    45,960 53002‐Retiree Healthcare                      2,600                      2,672 55001‐Medicare                      3,008                      3,148 61001‐Advertising and Public Outreach                    10,000                      3,200 61008‐Parking                      2,040                      2,040 61013‐Other Contract Services                    24,500                    35,000 62001‐Print and Reproduction                      2,500                        500 62002‐Office Supplies                      1,000                         200 62004‐Publications and Subscriptions                         192                         200 62506‐Safety Materials and Supplies                         634                          ‐ 62509‐Misc Materials and Supplies                         800                         500 63001‐Membership and Certifications                      1,070                      1,070 63002‐Education and Training                      6,000                      6,000 63003‐Trips and Meetings                      1,500                      1,500 Financial Plan Page 471

Operating Budget Line Item Detail (All Funds) FY 2025‐26 FY 2026‐27 6201‐Reservoir Operations              1,750,891              1,760,024 51001‐Salaries ‐ Regular                 479,824                 482,568 51010‐Overtime                      3,000                      3,000 51017‐Standby                    22,245                    22,245 51018‐Call Back                      4,000                      4,000 52001‐Retirement Contributions                    39,372                    39,594 52002‐Retirement PARS ‐ 401                         222                         222 52003‐PERS Unfunded Liability                 110,015                 120,752 53001‐Employee Group Insurance                    59,069                    61,481 53002‐Retiree Healthcare                      6,180                      6,351 55001‐Medicare                      6,903                      6,942 61005‐Data Processing Services                      6,466                      6,466 61007‐Legal Services                   20,000                   20,000 61011‐Maintenance                    16,200                    16,200 61013‐Other Contract Services                 118,650                 134,000 61027‐Control Systems                    12,978                    12,653 61503‐Electric Service                 723,418                 700,400 61505‐Communication Service                    15,500                    16,100 61506‐Solid Waste Service                      3,600                      3,600 62002‐Office Supplies                      1,500                      1,500 62007‐Employee Recognition                         500                         500 62501‐Chemicals                         700                         700 62502‐Construction Materials and Supplies                      5,900                      6,000 62503‐Equipment Maintenance Supplies                      5,500                      5,500 62506‐Safety Materials and Supplies                   62,150                   62,150 62509‐Misc Materials and Supplies                    18,800                    18,900 63001‐Membership and Certifications                         600                         600 63002‐Education and Training                      6,100                      6,100 63003‐Trips and Meetings                      1,500                      1,500 Financial Plan Page 472

R _____
RESOLUTION NO. ______ (2025 SERIES)

A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ADOPTING THE 2025-27 FINANCIAL PLAN AND FISCAL YEAR 2025-26 BUDGET
WHEREAS, in accordance with San Luis Obispo Charter Section 802, the City Manager has submitted the 2025-27 Financial Plan to the Council for review and consideration consistent with established budget and fiscal policies; and WHEREAS, the preparation of the 2025-27 Financial Plan was based on extensive public outreach, comment, and input and the City Council’s strategic vision as discussed at a public hearing for strategic budget direction on April 15, 2025; and WHEREAS, the Planning Commission reviewed the Capital Improvement Plan on May 28, 2025 and confirmed the plan’s conformity with the City’s General Plan; and WHEREAS, pursuant to Section 804 of the City Charter, the City Council must adopt the 2025-26 Budget by June 30, 2025 for the appropriations to be in place when the 2025-26 fiscal year begins on July 1, 2025; and
WHEREAS, pursuant to Section 803 of the City Charter, the City Council shall hold a public hearing on the proposed budget and this hearing was held during the June 17, 2025 City Council meeting; and
WHEREAS, California voters approved the Gann Spending-Limitation Initiative on November 6, 1979 and Proposition 111 on June 5, 1990, which establish and define annual appropriation limits on state and local government agencies; and WHEREAS, the California Government Code requires that the governing body of each local agency establish its appropriations limit and annual factors by resolution; and NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis Obispo as follows:

SECTION 1. The 2025-27 Financial Plan and Fiscal Year 2025-26 budget is hereby approved and that the budget for the fiscal year beginning July 1, 2025 and ending June 30, 2026 is hereby appropriated as presented in the 2025-27 Financial Plan.

SECTION 2. The City Manager is hereby delegated authority to approve budget adjustments, including non-substantive format and typographical changes found within the 2025-27 Financial Plan, consistent with the adopted budget policies to maintain budgetary flexibility and balances for the organization.

SECTION 3. The City’s appropriation limit and annual adjustment factors for Fiscal Year 2025-26 are adopted as follows:

Resolution No. ____ (2025 Series) Page 2
R ____
Upon motion of _________, seconded by ________, and on the following roll call vote:

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this ___ day of June 2025. ______________________________
Mayor Erica A. Stewart
ATTEST:

Teresa Purrington,
City Clerk
APPROVED:

J. Christine Dietrick,
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ________________________________
Teresa Purrington,
City Clerk
Appropriations Limit 2024-25 $94,976,973
Cost of Living Increase 1.02%
Population Factor: City Population Growth 1.06%
Compounded Percentage Factor (multiplicative not additive) 1.08% Appropriations Limit 2025-26 $102,632,964