San Luis Obispo City Council
January 13, 2026

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025
Note 1: Summary of Significant Accounting Policies
The basic financial statements of the City of San Luis Obispo (City) have been prepared in conformity with U.S. Generally Accepted Accounting Principles (GAAP), as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles.

The following is a summary of the more significant policies:

Description of the Reporting Entity
The City is a California charter city. It was incorporated on February 19, 1856 and chartered on May 1, 1876. It is organized in accordance with the Council-Mayor-City Manager form of government. With a population of approximately 48,700, the City provides a broad range of municipal services, including police and fire protection, parks and recreation, water and sewer utilities, street maintenance, public transportation, parking, planning, and building and safety.

As required by GAAP, these financial statements present the City (the primary government) and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are in substance part of the government's operations which creates the need to include their financial information with that of the primary government. The City has no component units that require discrete presentation in accordance with GASB standards.

Blended Component Unit. The City has identified The San Luis Obispo Capital Improvement Board (the Board) and the San Luis Obispo Public Financing Authority (the Authority) as blended component units in accordance with GASB standards. Both provide financing for the construction and acquisition of City facilities and consist of members of the City Council. Activities of both units are accounted for in the applicable City governmental funds and consist of the issuance of debt secured by the lease of property.

Separate financial statements are not prepared for the San Luis Obispo Capital Improvement Board or San Luis Obispo Public Financing Authority.

Government-wide and Fund Financial Statements
The government-wide financial statements (i.e. the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component unit. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely primarily on fees and charges for services.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable within a specific function or segment. The indirect expense allocation transfers general support services to operating programs based on the most current Cost Allocation Plan. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate fund financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

Measurement Focus, Basis of Accounting and Basis of Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary funds and fiduciary funds. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
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City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 1: Summary of Significant Accounting Policies (Continued) As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the government’s enterprise funds and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Governmental fund financial statements 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. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period.

For this purpose, the government generally considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. An exception to this timeframe is made to allow for the recognition of the final property tax distributions received from the County, if necessary, as well as for sales tax revenues received in September. This later provision is made in order for the City’s revenue stream to match that recognized by the State of California. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government.

Major Funds and Other Funds. GASB Standards define major funds and require that the City’s major governmental funds be identified and presented separately in the fund financial statements. All other funds, called non-major funds, are combined and reported in a single column, regardless of their fund type.

Major funds are defined as funds that have assets, liabilities, revenues, or expenditures/expenses equal to ten percent of their fundtype total and at least five percent of the grand total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds.

The City reports the following major governmental funds:

General Fund. This fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

Capital Outlay Fund. This fund was established to account for all of the City’s construction projects and capital purchases in excess of $25,000 with the exception of those funded through non-major capital project funds and Enterprise Funds. Financing is provided primarily through transfers in from the General Fund, and from State and Federal Grants.

The only proprietary funds the City reports are the Enterprise Funds, all of which are major funds. Proprietary funds are accounted for on the economic resources measurement focus and the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The City reports the following major enterprise funds:

Water Fund. This fund accounts for the provision of water services to the residents of the City as well as some customers in the County. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, capital improvements and debt service.

Sewer Fund. This accounts for the provision of wastewater collection and treatment services to the residents of the City as well as some customers in the County. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, capital improvements and debt service.

Parking Fund. This fund accounts for activities related to the implementation of the Access and Parking Management Plan, including the operation of municipal parking lots, parking structures, parking meters and residential parking districts. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, capital improvements and debt service.
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City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 1: Summary of Significant Accounting Policies (Continued) Transit Fund. This fund accounts for the operation and maintenance of the City's transit system. Although user fees are not the primary funding source for the operation of the system, the State of California and the Federal government, which provide the major funding sources for the system, require that local transit systems be accounted for on an enterprise fund basis.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

The City has established twelve Custodial Funds, which are used to account for funds held by the City as an agent for Whale Rock Commission, Jack House Committee, County Task Force, individual donations, Boysen Ranch, San Luis Ranch Community Facilities District and San Luis Coastal Unified School District and San Luis Obispo County Public Access, Inc. Public Access Television, Avila Ranch Private Reimbursement Agreement, Asset Forfeitures, SWAT Task Force and Police Evidence. Custodial funds are accounted for using the accrual basis of accounting. See supplementary information for a complete list of Custodial Funds.

Assets, Liabilities, and Net Position or Fund Balance
Cash, Cash Equivalents and Investments. The City pools cash resources of its various funds to facilitate cash management. Cash in excess of current requirements is invested and reported as investments. It is the City’s intent to hold investments until maturity.

However, the City may, in response to market conditions, sell investments prior to maturity in order to improve the quality, liquidity or yield of the portfolio.

The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. Cash and investments held by fiscal agents are treated as cash equivalents for purposes of the statement of cash flows.

Money markets and non-negotiable certificates of deposit are reported at amortized cost. All other investments are stated at fair value.

Receivables and Payables. Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as “due to/from other funds”.

All receivables are shown net of any allowance for uncollectible accounts if material. Charges for utility services rendered but unbilled as of June 30 are accrued and are recognized as revenues.

Prepaids and Inventories. The City has no significant inventories. The cost of any inventoriable item has been recorded as an expenditure or expense at the time of purchase. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Prepayments in the governmental funds are accounted for using the consumption method.

Restricted Assets. Certain proceeds of debt financings, as well as resources set aside for their repayment, are classified as restricted assets on the balance sheet because they are maintained in separate trust bank accounts and their use is limited by applicable debt covenants. Notes 2 and 5 have additional information on funds held by fiscal agents. 91

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 1: Summary of Significant Accounting Policies (Continued) Capital Assets. Capital assets, which include property, plant, equipment and infrastructure assets (such as streets, sidewalks and bridges), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements, and in the proprietary funds statement of net position. Capital assets are defined by the City as assets with an initial, individual cost of more than $25,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement would be reported at acquisition value rather than fair value. The costs of normal maintenance and repairs that do not add to the value of assets or materially extend assets’ lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of the business- type activities is included as part of the capitalized value of the assets constructed. Detailed information on the City’s capital assets can be found in Note 4.

Property, plant and equipment of the City are depreciated using the straight line method over the following estimated useful lives:

Deferred Outflows and Inflows of Resources. The City recognizes deferred outflows and inflows of resources in the Statement of Net Position. A deferred outflow of resources is defined as a consumption of net assets by the City that is applicable to a future reporting period. The City has deferred outflows of resources related to pensions, other post-employment benefits (OPEB), and unamortized loss on refunding of debt. A deferred inflow of resources is defined as an acquisition of net assets by the City that is applicable to a future reporting period. The City has deferred inflows of resources related to pensions and OPEB.

Compensated Absences. City employees are granted vacation and sick leave in varying amounts. In the event of termination, employees are reimbursed for the total value of their accumulated vacation days. Employees are reimbursed for 10% to 30% of the accumulated sick leave only upon retirement and only after at least 10 years of service. In selected cases, similar accumulated sick leave reimbursements may be available after 20 years of continuous employment. An employee's estate is reimbursed for 30% of the employee's accumulated sick leave in the event of death while in the City's employ. A liability for compensated absences is accrued in the government-wide and proprietary funds financial statements.

In accordance with GASB Statement No. 101, Compensated Absences, the City recognizes a liability for compensated absences for leave time that (1) has been earned for services previously rendered by employees, (2) accumulates and is allowed to be carried over to subsequent years, and (3) is more likely than not to be used as time off or settled (for example paid in cash to the employee or payment to an employee flex spending account) during or upon separation from employment. The liability includes vacation leave and sick leave expected to be used or paid upon termination, retirement, or death. The City uses the first-in, first-out (FIFO) method to estimate the amount of compensated absences expected to be used or paid.

Long-Term Obligations. In the government-wide financial statements, and proprietary funds in the fund financial statements, longterm debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary funds statement of net position. Bond premiums and discounts and deferred amounts on refunding are deferred and amortized over the life of the bonds. Deferred amounts on refunding are reported separately from assets and liabilities in the Statement of Net Position. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed as incurred.

In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the period they originate. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Assets Years
Infrastructure 20-100
Buildings and structures 20-50
Improvements other than buildings 10-100
Equipment 3-21
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City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 1: Summary of Significant Accounting Policies (Continued) Net Pension Liability. The City recognizes a net pension liability, which represents the excess of the total pension liability over the fiduciary net position of the pension reflected in the actuarial reports provided by the California Public Employees’ Retirement System (CalPERS) plans (Plans). The net pension liability is measured as of the City’s prior fiscal year-end. Changes in the net pension liability are recorded, in the period incurred, as pension expense or as deferred inflows of resources or deferred outflows of resources depending on the nature of the change. The changes in the net pension liability that are recorded as deferred inflows of resources or deferred outflows of resources (that arise from changes in actuarial assumptions or other inputs and differences between expected or actual experience) are amortized over the weighted average remaining service life of all participants in the respective pension plan and are recorded as a component of pension expense beginning with the period in which they are incurred.

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

Investments are reported at fair value. Projected earnings on pension investments are recognized as a component of pension expense General fund is the governmental fund used to liquidate the pension liabilities of the governmental activities.

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

Investments are reported at fair value. General fund is the governmental fund used to liquidate the OPEB liabilities of the governmental activities.

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

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
Fund Equity. In the fund financial statements, fund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purpose for which amounts in the funds can be spent. Fund balance is reported in five components in accordance with GASB Statement No. 54 Fund Balance Reporting and Governmental Fund Type Definitions – nonspendable, restricted, committed, assigned and unassigned. The City Council may take action via minute order to add, delete or amend a fund balance commitment that is not required as a condition of a bond covenant or other external, legal requirement.

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

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

Committed. This component consists of amounts that can only be used for specific purposes pursuant to constraints imposed by minute order authorized by the City Council. Those committed amounts established by minute order cannot be used for any other purpose unless the City Council adopts a new minute order so directing. With respect to encumbered amounts, the City may take steps to cancel the order for goods or services and thereby terminate the obligation. 93

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 1: Summary of Significant Accounting Policies (Continued) Assigned. This component consists of amounts that are constrained by the City’s intent to be used for specific purposes but are neither restricted nor committed. The City Manager or Director of Finance are authorized by City Council, via formal action at regular public meetings, to assign amounts to a specific purpose. Constraints imposed on the use of assigned amounts can be removed with no formal Council actions.

Unassigned. This component is the residual classification for the General Fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. The General Fund is the only fund that reports a positive unassigned fund balance amount. Other governmental funds may report negative unassigned fund balance, which occurs when a fund has a residual deficit after allocation of fund balance to the nonspendable, restricted, or committed categories.

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

Reconciliation of Government-wide and Fund Financial Statements A reconciliation between total fund balance of the governmental funds and total net position of the governmental activities as reported in the government-wide statement of net position is presented in the basic financial statements.

A reconciliation between total net change in fund balance of the governmental funds and total change in net position of governmental activities as reported in the government-wide statement of activities is presented in the basic financial statements.

There are no differences between total net position of the proprietary funds and total net position of the business-type activities as reported in the government-wide statement of net position.

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

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

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

Management Policies. The overall goal of the City's Financial Plan is to link what the City wants to accomplish over the next two years with the resources required to do so. Formal statements of budgetary policies and major objectives provide the foundation for achieving this goal. Key budget principles include: maintaining fund balances at levels which will protect the City from future uncertainties; estimating revenues at realistic levels; making current expenditures with current revenues; maintaining the City's traditional commitment to a strong General Fund; and complying with provisions of the State constitution, City charter, municipal code, and sound fiscal policy. Key revenue policies include: maintaining a diversified and stable revenue base; setting enterprise fund rates at levels that fully recover the total cost of providing services in the Water, Sewer and Parking Funds; and at policy levels for cost recovery in the Transit Fund; charging fees for General Fund programs in accordance with adopted user fee cost recovery goals; and ensuring that new development pays its fair share of the cost of constructing necessary community facilities. 94

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 1: Summary of Significant Accounting Policies (Continued)  Budget Process. The City Manager is responsible for preparing the budget and submitting it to the Council for approval.

Although specific steps will vary from year to year, the following is an overview of the general approach used under the City's two-year budgetary process:
 First Year. The Financial Plan process begins with City Council goal setting to determine major objectives to be accomplished over the next two years. As part of this process, community groups, interested individuals, and Council advisory bodies present their recommendations to the Council. Goals approved by the City Council are incorporated into the budget instructions issued to the operating departments, who are responsible for submitting initial budget proposals. After these proposals are comprehensively reviewed and a detailed financial forecast is prepared, the City Manager issues the Preliminary Financial Plan for public comment. A series of study sessions and public hearings are then held leading to Council adoption of the Financial Plan and Budget prior to the start of the fiscal year.
 Second Year. Before the beginning of the second year of the two-year cycle, the Council reviews the progress during the first year, adjusts as necessary and approves appropriations for the second fiscal year. Unspent operating appropriations from the first year may be carried over for specific purposes into the second year with the approval of the City Manager. Unspent and unencumbered operating appropriations lapse at the end of the second year. The fiscal year which ended June 30, 2025 was the second year of the 2023-25 two-year cycle.  Mid-Year Reviews. The Council formally reviews the City's financial condition and amends appropriations, if necessary, each February.
 Status Reports. Financial reports are prepared monthly to monitor the City's fiscal condition; more formal reports are posted to the City's website on a quarterly basis. Additionally, more focused reports are issued on key revenues, such as sales tax, transient occupancy tax and quarterly reports on investments. The status of major goals and program objectives, including Capital Improvement Plan (CIP) projects, are also formally reported to the Council on an ongoing basis.

Accounting and Budget Administration. Budgets are prepared for each fund in accordance with its respective basis of accounting consistent with U.S. Generally Accepted Accounting Principles (GAAP). All governmental funds have legally adopted budgets annually. While budgets are prepared for the City's capital projects funds, the capital projects generally span more than one year and are effectively controlled at the project level; accordingly, budgetary comparisons are not presented for capital projects funds in the accompanying other supplementary information following the basic financial statements.

As provided under the City Charter, the Council may amend or supplement the budget at any time after its adoption by majority vote of the Council members. The legal level of budgetary control – the level at which expenditures are not to exceed appropriations – is the fund level.

For management control purposes, the City Manager has the authority to make or approve administrative adjustments to the budget provided those changes will not have a significant policy impact nor affect budgeted year-end fund balances. Department heads have the authority to transfer line-item budgets within the department within a fund. Both the original and final amended budgets of the General Fund are presented as required supplementary information following the notes to the financial statements. Budget information for non-major governmental funds with annual budgets is presented in other supplementary information following the notes to the financial statements.
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City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 1: Summary of Significant Accounting Policies (Continued) Encumbrances. The City uses an encumbrance system as an extension of normal budgetary accounting for the other governmental funds. Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of applicable appropriations. Encumbrances outstanding at year-end are recorded as restricted, committed, or assigned fund balances since they do not constitute expenditures or liabilities. Unencumbered appropriations lapse at year-end.

Encumbered appropriations are carried forward in the ensuing year’s budget.

Indirect Cost Reimbursement. All of the City's general government and engineering programs are accounted and budgeted for in the General Fund. However, some of these support service programs also benefit the City's enterprise and custodial fund operations, and accordingly, payments are made from these funds to reimburse the General Fund for these services. The payments are based on a Central Service Cost Allocation Plan prepared for this purpose, which distributes these shared costs in a uniform, consistent manner in accordance with GAAP.

Fair Value Measurements
As defined in GASB Statements, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City uses valuation techniques that are appropriate under the circumstances and for which sufficient data are available to measure fair value. Valuation techniques maximize the use of relevant observable inputs and minimize the use of unobservable inputs.

GASB Statements establish a hierarchy of inputs to valuation techniques used to measure fair value. That hierarchy has three levels:

Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 — Observable inputs, other than Level 1 prices, for the asset or liability, either directly or indirectly.

Level 3 — Unobservable inputs for the asset or liability.

For fiscal year ended June 30, 2025, the application of valuation techniques applied to the City’s financial statements has been consistent.

Note 2: Cash and Investments
The City follows the practice of pooling cash and investments for all funds under its direct daily control. Funds held by outside fiscal agents under provisions of bond indentures are maintained separately.

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

Funds with Fiscal Agent
The City has monies held by trustees or fiscal agents pledged to the payment or security of certain bonds. The California Government Code provides that these funds, in the absence of specific statutory provisions governing the issuance of bonds, may be invested in accordance with the ordinance, resolutions, or indentures specifying the types of investments its trustees or fiscal agents may make.

These ordinances, resolutions, or indentures are generally more restrictive than the City's general investment policy. In no instance have additional types of investments been authorized which are not permitted by the City's investment policy. 96

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 2: Cash and Investments (Continued)
Investments
The City is authorized by its investment policy, in accordance with Section 53601 of the California Government Code, to invest in the following instruments:
 Treasury bills and notes
 Government Sponsored Enterprises
 Commercial paper
 Repurchase agreements
 Bankers' acceptances
 Corporate medium-term notes
 Negotiable certificates of deposit
 Collateralized bank deposits
 Money market mutual funds
 State Local Agency Investment Fund (LAIF)
Investments are stated at fair value, based on quoted market prices, in accordance with GASB standards. Investment income has been adjusted to reflect any unrealized gains and losses resulting from the fair value adjustment annually. While U.S. generally accepted accounting principles require recording any increases or decreases in the fair value of the City’s investments, it is the City’s policy to make all investment decisions based on holding them through maturity, and therefore the City may not realize the gains or losses resulting from the fair value adjustment. As such, changes in fair value generally do not affect the long-term results of the portfolio, but they can result in significant fluctuations from year-to-year.

The fair value of the City’s position in the State LAIF pool is the same as the value of the pool shares. The State LAIF pool credit quality is unrated. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The State Treasurer’s Office audits the fund annually.

At June 30, 2025, cash and investments consisted of the following:

Fair
Value
Percent of
Portfolio
Cash and cash equivalents $ 64,478,686 20.66%
Investments:

State Local Agency Investment Fund 49,234,734 15.78%
U.S. Treasury Bond / Note 70,706,736 22.66%
Federal Agency Bond / Note 4,960,922 1.59%
Corporate Note 22,911,999 7.34%
Municipal Bond/Note 211,680 0.07%
Bank Note 668,088 0.21%
Asset-Backed Securities 10,622,789 3.40%
Negotiable Certificates of Deposit 1,013,896 0.32%
Non-Negotiable Certificates of Deposit 2,107,965 0.68%
Money Market Funds 85,171,554 27.29%
Total investments 247,610,363 79.34%
Total cash and investments $ 312,089,049 100.00%
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City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 2: Cash and Investments (Continued)
At June 30, 2025, cash and investments are reflected in the financial statements as following:

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

The following is a summary of the fair value measurements as of June 30, 2025:

Custodial Credit Risk – Deposits with Financial Institutions. The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover deposits. Deposits with financial institutions, including non-negotiable certificates of deposit, totaled $65,105,763 at June 30, 2025 and were insured or collateralized with securities held by the pledging financial institution's trust department or agent in the City's name.

Governmental
Funds
Business-Type
Funds
Fiduciary
Funds Total
Cash and investments $ 124,667,748 $ 126,788,389 $ 37,857,521 $ 289,313,658 Cash and investments held by fiscal agents 594,469 22,180,922 - 22,775,391 Total cash and investments $ 125,262,217 $ 148,969,311 $ 37,857,521 $ 312,089,049 Government-Wide Statement of Net
Position
Fair Value
Investments by fair value hierarchy
U.S. Treasury Bond / Note $ 70,706,736 $ - $ 70,706,736 $ - Federal Agency Bond / Note 4,960,922 - 4,960,922 -
Corporate Note 22,911,999 - 22,911,999 -
Municipal Bond/Note 211,680 - 211,680 -
Bank Note 668,088 - 668,088 -
Asset-Backed Securities 10,622,789 - 10,622,789 -
Negotiable Certificates of Deposit 1,013,896 - 1,013,896 - Total investments by fair value hierarchy 111,096,110 $ - $ 111,096,110 $ - Investments not subject to fair value hierarchy
State Local Agency Investment Fund 49,234,734
Non-Negotiable Certificates of Deposit 2,107,965
Money Market Funds 85,171,554
Total investments not subject to fair value hierarchy 136,514,253 Total investments measured at fair value $ 247,610,363
Fair Value Measurements Using
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
98

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 2: Cash and Investments (Continued)
The California Government Code requires California financial institutions to secure the City's deposits by pledging government securities as collateral. The fair value of the pledged securities must equal 110% of the City's deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes equal to 150% of the City's deposits or letters of credit issued by the Federal Home Loan Bank of San Francisco having a value of 105% in excess of the total amount of deposits.

Custodial Credit Risk - Investments. This is the risk that in the event of the failure of a counterparty, the City will not be able to recover the value of its investments that are in the possession of an outside party. All of the City’s investments in securities are insured or registered and held by a counterparty in the City’s name in accordance with the City’s policies.

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

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

Maturities using the segmented time distribution method for those investments requiring this disclosure are as follows:

Investments held by fiscal agents are structured with maturity dates that correspond to the payment of final debt service of the respective bond indenture.

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

Fair Value
Less Than One
Month
One Month to
One Year One to Five Years Over Five Years
State Local Agency Investment Fund $ 49,234,734 $ - $ 49,234,734 $ - $ - U.S. Treasury Bond / Note 70,706,736 - 22,083,062 48,623,674 - Federal Agency Bond / Note 4,960,922 - 3,816,445 1,144,477 - Corporate Note 22,911,999 - 3,450,288 19,461,711 -
Municipal Bond/Note 211,680 - 211,680 - -
Bank Note 668,088 - - 668,088 -
Asset-Backed Securities 10,622,789 - - 10,622,789 -
Negotiable Certificates of Deposit 1,013,896 - - 1,013,896 - Non-Negotiable Certificates of Deposit 2,107,965 - 2,107,965 - - Money Market Funds 85,171,554 85,171,554 - - -
Total maturities $ 247,610,363 $ 85,171,554 $ 80,904,174 $ 81,534,635 $ - Cash in banks and on hand 64,478,686
$ 312,089,049
99

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 2: Cash and Investments (Continued)
The following table identifies the Standard & Poor’s credit quality ratings for those investments requiring this disclosure as of June 30, 2025:

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

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

Foreign Currency Risk. The City does not hold any investment that is based on foreign currency exchange rates.

Type of Investment Rating Total
Federal Agency Bonds / Notes AA+ $ 4,960,922
Corporate Notes AAA 1,617,924
AA 318,488
AA- 6,338,531
A+ 8,183,504
A 5,443,148
A- 1,010,404
Total Corporate Notes 22,911,999
Municipal Bond/Note AA- 211,680
Bank Note A 668,088
Asset-Backed Securities AAA 7,489,200
NR 3,133,589
Negotiable Certificates of Deposit A+ 1,013,896
U.S. Treasury Bonds / Notes AA+ 70,706,736
Not Rated:

State Local Agency Investment Fund 49,234,734
Non-Negotiable Certificates of Deposit 2,107,965
Money Market Mutual Funds 85,171,554
Total Investments $ 247,610,363
100

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 3: Property Taxes
Property taxes in the State of California (State) are administered for all local agencies at the county level, and consist of secured, unsecured and utility tax rolls. The following is a summary of major policies and practices relating to property taxes:
 Property Valuation. Valuations are established by the Assessor of the County of San Luis Obispo (County) for the secured and unsecured property tax rolls; the utility property tax roll is valued by the State Board of Equalization. Under the provisions of Article XIIIA of the State Constitution (Proposition 13 adopted by the voters on June 6, 1978), properties are assessed at 100% of full value. Proposition 13 also modified the value of taxable real property for fiscal 1979 by rolling back values to fiscal 1976 levels. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of 2%. However, increases to full value are allowed for property improvements or upon change in ownership.

Personal property is excluded from these limitations and is subject to annual reappraisal.  Tax Levies. Under the provisions of Proposition 13, the countywide tax levy for general revenue purposes is limited to 1% of full market value, which results in a tax rate of $1.00 per $100 assessed valuation. Tax rates for voter approved indebtedness are excluded from this limitation.
 Tax Levy Dates. All lien dates attach annually on January 1 preceding the fiscal year for which the taxes are levied. The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on both real and unsecured personal property as it exists at that time. The lien against real estate as well as the tax on personal property is not relieved by subsequent renewal or change in ownership.
 Tax Collections. The County Treasurer/Tax Collector is responsible for all property tax collections. Taxes and assessments on the secured and utility rolls, which constitute a lien against the property, may be paid in two installments: the first installment is due on November 1 of the fiscal year and is delinquent if not paid by December 10; and the second installment is due on March 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not constitute a lien against real property. However, if the taxes become delinquent the lien is attached against anything the individual owns, which could include real property. Payment must be made in one installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed by the County for late payments.  Teeter Plan. In 1993-94 the City elected to receive property tax revenue in accordance with the alternative method of distribution prescribed by Sections 4701-4717 of the California Revenue and Taxation Code, which is commonly known as the “Teeter Plan” whereby the County remits 100% of taxes levied without regard to delinquencies. The County then pursues collection, retaining any delinquent taxes and related penalties and interest.  Tax Levy Apportionments. Due to the nature of the countywide maximum levy, it is not possible to identify general purpose tax rates for specific entities. Under State legislation adopted after the passage of Proposition 13, apportionments to local agencies are made by the County Auditor Controller based primarily on two factors: the ratio that each agency represented of the total County wide levy for the three years prior to fiscal 1979; and subsequent adjustments to these apportionments and transfers to the “Educational Revenue Augmentation Fund” (ERAF) as determined by the State.  City Property Tax Distribution Policy. Property taxes are recorded in the General Fund as general-purpose revenue.

Transfers are made from the General Fund as needed to support expenditures in the Capital Outlay, Open Space Protection, Fleet Replacement, Information Technology Replacement, Major Facility Replacement and Debt Service Funds. Property taxes receivable at June 30, 2025 have been accrued since they will be collected within 60 days subsequent to year-end. 101

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 4: Loans Receivable
Loans receivable, including accrued interest comprised balances from the following programs, all of which are discussed on the following pages. These loans are non-compounding, meaning they accrue interest on only the original principal. No interest or principal is due until the end of the term. Some developments may have more than one type of loan with the City.

A. Affordable Housing Loans - The City’s Affordable Housing Fund provides grants and loans to certain development projects that meet the City’s affordability criteria. As of June 30, 2025, the Fund has 17 loans for affordable housing developments with interest rates ranging from 0% to 4% on the original principal and repayment terms of 30 to 57 years.

Outstanding loans had a remaining principal balance of $9.2 million; 4 loans for $669,063 are forgivable if certain criteria are met netting $8.5 million in loans. The Fund has secured more than 450 affordable housing units for City residents.

B. BEGIN Homeownership Loan - The City has provided deferred payment loans utilizing funding from the State of California under the BEGIN program. On June 30, 2025, the Fund had two outstanding loans utilizing this program with a principal balance of $130,000. These loans are provided for a term of 30 years with an annual interest rate of 3% on the original principal.

C. Down Payment Assistance - The Fund has provided down payment assistance loans to individuals purchasing affordable housing units. As of June 30, 2025, the Affordable Housing Fund had seven outstanding down payment assistance loans with a principal balance of $292,995. These loans are provided for a term of 30 years with an annual interest rate of 3% on the original principal.

D. Impact Fee Deferral Loan – The City has provided certain affordable housing developments with loans equal to the amount of certain impact fees. These loans are reflected in the respective impact fee funds. As of June 30, 2025, the total principal outstanding was $5,004,148. These loans are provided for a term of 55 years with an annual interest rate of 3% on the original principal.

E. Community Development Block Grant (CDBG) Fund Loans – The City has provided loans from the City’s allocation of CDBG funding for certain affordable housing developments. As of June 30, 2025, the CDBG Fund had $1,556,161 principal outstanding on the loans with $443,217 forgivable if certain conditions are met. The loans have terms of 30 years and annual interest rates of 3% to 4% on the original principal.

Note 5: Capital Assets
GASB standards require that the City report in the government-wide statements the value of all capital assets net of accumulated depreciation, including infrastructure assets, in accordance with GAAP. Infrastructure assets are defined as long-lived capital assets that are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets.

Total Balance
Description Loans Receivable Interest Receivable June 30, 2025 Governmental Funds:

Affordable Housing Loans $ 8,490,688 $ 2,850,875 $ 11,341,563 BEGIN Homeownership Loans 130,000 60,475 190,475
Down Payment Assistances 292,995 79,866 372,861
CDBG Loans 1,112,944 744,699 1,857,643
Impact Fee Loans 2,729,061 798,485 3,527,546
Total Governmental Funds 12,755,688 4,534,400 17,290,088 Enterprise Funds:

Impact Fee Loans 2,275,087 477,106 2,752,193
Total Enterprise Funds 2,275,087 477,106 2,752,193
Total Primary Government $ 15,030,775 $ 5,011,506 $ 20,042,281 102

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 5: Capital Assets (Continued)
The minimum requirement for compliance with GASB standards is to provide infrastructure valuations for all assets constructed, acquired, or placed into service on or after July 1, 1980. Relevant assets for the City were valued at one of two dates: 1) the original date of construction, if available, or 2) the incorporation date of the City. Each asset was reviewed to determine the adequacy of the data to value the asset prior to July 1, 1980 using historical cost or estimated historical cost.

Capital assets activity for the fiscal year ended June 30, 2025 was as follows:

Balance Balance
June 30, 2024 Additions Deletions Transfers June 30, 2025 Governmental activities:

Capital assets not being depreciated:

Land $ 34,263,736 $ - $ - $ - $ 34,263,736
Construction in progress 29,750,174 19,654,898 (1,122) (27,180,557) 22,223,393 Public art 646,630 - - - 646,630
Total capital assets not
being depreciated 64,660,540 19,654,898 (1,122) (27,180,557) 57,133,759 Capital assets being depreciated:

Infrastructure 214,889,288 - - 20,412,914 235,302,202
Accumulated Depreciation (82,293,168) (3,628,183) - (1,677,819) (87,599,170) Buildings and improvements 59,159,418 - (16,000) 5,793,182 64,936,600 Accumulated Depreciation (25,338,081) (1,931,009) 16,000 1,716,192 (25,536,898) Equipment 36,006,043 - (241,818) 974,461 36,738,686
Accumulated Depreciation (22,285,375) (2,282,966) 241,818 (38,373) (24,364,896) Capital assets being amortized:

Right of use - Lease asset 736,731 - - - 736,731
Accumulated Amortization (342,353) (152,403) - - (494,756) Subscription based I.T. agreements 897,624 - (155,082) - 742,542 Accumulated Amortization (507,530) (258,985) 117,973 - (648,542) Total capital assets being
depreciated/amortized, net 180,922,597 (8,253,546) (37,109) 27,180,557 199,812,499 Governmental activities,
capital assets, net $ 245,583,137 $ 11,401,352 $ (38,231) $ - $ 256,946,258 Business-type activities:

Capital assets not being depreciated:

Land $ 13,814,878 $ - $ - $ - $ 13,814,878
Construction in progress 181,987,785 53,169,805 (37,637) (17,175,259) 217,944,694 Total capital assets not
being depreciated 195,802,663 53,169,805 (37,637) (17,175,259) 231,759,572 Capital assets being depreciated:

Infrastructure 245,965,945 - - 11,886,327 257,852,272
Accumulated Depreciation (117,924,287) (5,054,114) - (801,210) (123,779,611) Buildings and improvements 30,527,376 - - 381,264 30,908,640 Accumulated Depreciation (17,158,306) (592,430) - 7,521 (17,743,215) Equipment 26,278,687 - (372,433) 4,907,663 30,813,917
Accumulated Depreciation (17,783,442) (1,541,190) 372,433 793,694 (18,158,505) Capital assets being amortized:

Subscription based I.T. agreements 77,026 - - - 77,026
Accumulated Amortization (51,343) (25,683) - - (77,026) Total capital assets being
depreciated, net 149,931,656 (7,213,417) - 17,175,259 159,893,498 Business-type activities,
capital assets, net 345,734,319 45,956,388 (37,637) - 391,653,070 Total Government-wide $ 591,317,456 $ 57,357,740 $ (75,868) $ - $ 648,599,328 103

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 5: Capital Assets (Continued)
Depreciation and amortization expense was charged to functions/programs as follows:

Note 6: Leases
Pursuant to GASB 87, the City has the following lease receivables:

James Town
On 11/5/2013, the City entered into a lease with James Town Premier SL Retail, L.P. or commercial retail space located at the Marsh Street parking structure. Under the lease, the lessee pays the City $11,310 per month from 2/1/2014 – 1/31/2015 and with 3% increase each year from 2/1/2015 – 1/31/2024. City renewed the lease for 5 years. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 3.99%, which was the 5-year US Treasury rate in effect when the lease was entered into. In fiscal year 2025, the City recognized $133,858 of lease revenue and $19,007 of interest revenue under the lease.

Crown Castle
On 9/19/2017, the City entered into a lease with Crown Castle NG West LLC to utilize City utility poles for communications equipment. Under the lease, the initial annual pole fee shall consist of $1,000 for each city pole which Crown Castle’s facilities are to be installed pursuant to this agreement and is payable to city upon execution and delivery of this agreement and prior to Crown Castle installing any portion of the network or any facilities. The term ends on 9/1/2047 with 3% increase annually. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 3.5%, which was the 5-year US Treasury rate in effect when the lease was entered into. In fiscal year 2025, the City recognized $6,491 of lease revenue and $5,661 of interest revenue under the lease.

Garden Street
On 8/1/2015, the City entered into a lease with Garden Street SLO Partners, L.P for the right to use land formerly a surface parking lot in order to build a hotel. Under the lease, the lessee pays the City $171,600 or the “Base Annual Rent Floor”, which is the amount of Landlord’s annual net revenue from the operation of Parking Lot 2 on the premises in the period of twelve months ended on the last day of the last full calendar month ended two months prior to the rent commencement date. The amount of base rent shall be increased as of the first day of each rent adjustment period commencing with the rent adjustment period that begins on the first day of the third lease year and on the first day of each subsequent rent adjustment period. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 1%, which is the 5- year US Treasury rate in effect when the lease was entered into. In fiscal year 2025, the City recognized $391,827 of lease revenue and $368,219 of interest revenue under the lease.

Governmental activities:

Public safety $ 973,615
Transportation 4,387,129
Culture and recreation 928,459
Community development 155,245
General government 1,809,098
Total depreciation - governmental activities 8,253,546
Business-type activities:

Water 3,369,279
Sewer 2,636,961
Parking 732,015
Transit 475,162
Total depreciation - business-type activities 7,213,417 Total Government-wide $ 15,466,963
104

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 6: Leases (Continued)
Laguna AT&T
On 9/16/2009, the City entered into a lease with New Cingular Wireless PCS, LLC to locate a cellular communication site at the Laguna Lake Golf Course. Under the lease, the lessee pays the City $26,000 annually and thereafter, be multiplied by the CPI Adjuster or 3%, whichever is greater that ends on 9/30/2029. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 2%, which is the 5-year US Treasury rate in effect when the lease was entered into. In fiscal year 2025, the City recognized $43,195 of lease revenue and $5,023 of interest revenue under the lease.

Laguna SBA
On 2/1/2005, the City entered into a lease with SBA 2012 TC Assets, LLC to locate a cellular communication site at the Laguna Lake Golf Course. Under the lease, the lessee pays the City $25,000 annually and thereafter, be multiplied by the CPI Adjuster or 3%, whichever is greater, that ends in 2025. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 3%, which is the 5-year US Treasury rate in effect when the lease was entered into. In fiscal year 2025, the City recognized $19,588 of lease revenue under the lease.

Santa Rosa St
On 5/13/2011, the City entered into a lease with New Cingular Wireless PCS, LLC to locate a cellular communication site at the Santa Rosa Park. Under the lease, the lessee pays the City $26,000 annually and thereafter, be multiplied by the CPI Adjuster or 3%, whichever is greater, that ends on 5/13/2031. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 2%, which is the 5-year US Treasury rate in effect when the lease was entered into. In fiscal year 2025, the City recognized $73,350 of lease revenue and $10,876 of interest revenue under the lease.

The future revenue payments as of June 30, 2025 are as follows:

Year Ending
June 30, Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 2026 $ 2,000 $ 5,601 $ - $ 369,364 $ 38,836 $ 4,286 $ 69,693 $ 9,555 $ 122,794 $ 14,866 $ 233,322 $ 403,671 2027 2,298 5,531 - 370,367 40,906 3,509 73,464 8,161 131,357 10,432 248,025 398,000 2028 2,613 5,451 - 371,380 43,057 2,691 77,382 6,692 140,351 5,692 263,403 391,905 2029 2,946 5,359 - 372,403 45,291 1,830 81,452 5,144 85,662 1,002 215,350 385,739 2030 3,298 5,256 - 373,275 46,196 924 85,679 3,515 - - 135,173 382,970 2031-2035 22,502 24,278 - 1,878,734 - - 90,068 1,801 - - 112,571 1,904,813 2036-2040 34,701 19,530 - 1,894,309 - - - - - - 34,701 1,913,839 2041-2045 50,458 12,410 116,100 1,902,630 - - - - - - 166,558 1,915,040 2046-2050 39,216 2,791 117,782 1,902,301 - - - - - - 156,998 1,905,092 2051-2055 - - 318,486 1,891,932 - - - - - - 318,486 1,891,932 2056-2060 - - 576,982 1,870,265 - - - - - - 576,982 1,870,265 2061-2065 - - 844,561 1,835,348 - - - - - - 844,561 1,835,348 2066-2070 - - 1,148,189 1,785,236 - - - - - - 1,148,189 1,785,236 2071-2075 - - 1,530,943 1,718,156 - - - - - - 1,530,943 1,718,156 2076-2080 - - 1,927,732 1,631,402 - - - - - - 1,927,732 1,631,402 2081-2085 - - 2,374,735 1,522,274 - - - - - - 2,374,735 1,522,274 2086-2090 - - 2,929,704 1,388,291 - - - - - - 2,929,704 1,388,291 2091-20295 - - 3,505,635 1,225,726 - - - - - - 3,505,635 1,225,726 2096-2100 - - 4,151,056 1,030,847 - - - - - - 4,151,056 1,030,847 2101-2105 - - 4,943,368 800,216 - - - - - - 4,943,368 800,216 2106-2110 - - 5,766,264 528,717 - - - - - - 5,766,264 528,717 2111-2115 - - 6,684,816 211,224 - - - - - 6,684,816 211,224 Total $ 160,032 $ 86,207 $ 36,936,353 $ 26,874,397 $ 214,286 $ 13,239 $ 477,737 $ 34,867 $ 480,164 $ 31,991 $ 38,268,572 $27,040,702 Crown Castle Garden St Laguna ATT Santa Rosa St Marsh St Total 105

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 7: Long Term Debt (Continued)
Lease Liability (Cuesta Peak)
On October 23, 2003, the City entered into a 22-year Lease Agreement as lessee of a site for City radio equipment. The City pays the landlord $16,857.96 annually with a 4% increase. An initial lease liability was recorded in the amount of $157,527. As of June 30, 2025, the value of the lease liability is $20,148. The City is required to make monthly payments of $670 and increase annually by 4% in October of each year. The lease has an interest rate of 3.04%. The value of the right to use asset as of June 30, 2025 of $157,442 with accumulated amortization of $110,633 is included in the intangible assets on the capital assets activities table found in Note 5 above.

Lease Liability (994 Mill Street)
On June 9, 2022, the City entered into a 3-year Lease Agreement as lessee of a site for the use of 11 parking spaces. The term of this lease commenced on July 1, 2022. The City pays the landlord $10,038 annually with a 3% increase. An initial lease liability was recorded in the amount of $579,204. As of June 30, 2025, the value of the lease liability is $256,298. The lease has an interest rate of 4%. The value of the right to use asset as of June 30, 2025 of $579,204 with accumulated amortization of $231,700 is included in the intangible assets on the capital assets activities table found in Note 5 above.

At June 30, 2025, the aggregate maturities of the aforementioned governmental activities revenue bonds were as follows:

At June 30, 2025, the aggregate maturities of the aforementioned governmental lease liabilities were as follows:

For the Year Ending June 30, Principal Interest Total
2026 $ 1,143,450 $ 581,515 $ 1,724,965
2027 986,775 525,693 1,512,468
2028 1,036,425 478,929 1,515,354
2029 1,082,625 431,158 1,513,783
2030 1,138,825 380,977 1,519,802
2031/2035 4,359,025 1,339,293 5,698,318
2036/2040 2,752,100 537,175 3,289,275
2041/2045 1,900,000 196,000 2,096,000
Subtotal 14,399,225 4,470,740 18,869,965
Unamortized bond Premium 966,956 - 966,956
Total $ 15,366,181 $ 4,470,740 $ 19,836,921
For the Year Ending June 30, Principal Interest Total
2026 $ 143,768 $ 8,365 $ 152,133
2027 132,678 2,892 135,570
$ 276,446 $ 11,257 $ 287,703
106

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 7: Long Term Debt
Summary of Long-Term Debt
The following is a summary of the City's long-term debt transactions for the year ended June 30, 2025:

Compensated absences in the governmental funds are generally liquidated by the General Fund on a pay as you go basis. For detail of estimated claims and liabilities, see Note 11.

The San Luis Obispo Capital Improvement Board (Board) and the San Luis Obispo Public Financing Authority (Authority) have entered into a number of lease agreements with the City of San Luis Obispo wherein the City is obligated to make all debt service payments. The transactions between the Board/Authority have been eliminated from these financial statements.

Balance Balance Due Within
June 30, 2024 Additions Deductions June 30, 2025 One Year Governmental activities:
2014 Lease revenue bonds $ 6,085,000 $ - $ (200,000) $ 5,885,000 $ 205,000 2018 Lease revenue refunding bonds 7,493,200 - (618,975) 6,874,225 648,450 2023 Lease revenue refunding bonds 1,920,000 - (280,000) 1,640,000 290,000 Add: Unamortized bond premium 1,062,295 - (95,339) 966,956 - Total revenue bonds 16,560,495 - (1,194,314) 15,366,181 1,143,450 Lease liability 429,171 - (152,725) 276,446 143,768
Subscription based I.T. agreeemnts 321,349 - (246,637) 74,712 51,516 Total long-term debt,
governmental activities $ 17,311,015 $ - $ (1,593,676) $ 15,717,339 $ 1,338,734 Compensated absences $ 4,449,948 $ 5,479,971 $ (5,259,892) $ 4,670,027 $ 3,269,019 Business-type activities:
2018 Lease revenue refunding bonds $ 3,946,800 $ - $ (326,025) $ 3,620,775 $ 341,550 2018 Water revenue refunding bonds 7,365,000 - (520,000) 6,845,000 545,000 2023 Lease revenue refunding bonds 43,860,000 - (640,000) 43,220,000 680,000 Add: Unamortized bond premium 4,965,712 - (234,959) 4,730,753 - Total revenue bonds 60,137,512 - (1,720,984) 58,416,528 1,566,550 Subscription based I.T. agreeemnts 25,637 - (25,637) - - Loans 138,064,103 19,479,561 (4,663,165) 152,880,499 4,819,807 Installment sale agreements 2,869,551 - (541,575) 2,327,976 557,280 Total long-term debt,
business-type activities 201,096,803 19,479,561 (6,951,361) 213,625,003 6,943,637 Compensated absences 915,977 978,808 (1,020,134) 874,651 612,256 Total Government-wide $ 223,773,743 $ 25,938,340 $ (14,825,063) $ 234,887,020 $ 12,163,646 107

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 7: Long Term Debt (Continued)
Governmental Activities Summary:

Revenue Bonds
2014 Lease Revenue Bonds. In 2014, the Authority issued lease revenue bonds in the amount of $7,580,000 to finance the expansion of the Los Osos Valley Road interchange at U.S. 101. The bonds bear interest from 3.00% to 4.00% and are due in annual installments on November 1 through November 1, 2044 that range from $145,000 to $410,000. At June 30, 2025, the principal amount outstanding on the bonds was $5,885,000.

In the Statement of Net Position, the 2014 bonds include the related unamortized premium which is being amortized and charged to expense over the term of the 2014 bonds. At June 30, 2025, the unamortized premium was $157,567. 2018 Lease Revenue Refunding Bonds. In 2018, the Authority issued lease revenue bonds in the amount of $16,905,000 to advance refund the outstanding 2005 revenue refunding bonds and the 2006 and 2009 lease revenue bonds, which were originally issued to construct several high priority capital improvement projects and to finance the costs of acquisition and construction of public parking facilities, and the public safety communications and emergency operations center project. Of the original bond issuance, $11,072,775 was used for financing governmental activities related to the original bonds and the remainder was used for business-type activities.

The bonds bear interest from 3.00% to 5.00% and are due in annual installments on June 1, through June 1, 2039 that range from $255,000 to $1,250,000. At June 30, 2025, the principal amount outstanding that pertains to governmental activities was $6,874,225 of the total $11,440,000 outstanding.

In the Statement of Net Position, the 2018 bonds include the related unamortized premium which is being amortized and charged to expense over the term of the 2018 bonds. At June 30, 2025, the unamortized premium for governmental activities was $706,886.

The refunding resulted in a difference of $374,404 between the reacquisition price and the net carrying value of the old debt and is being amortized to expense through 2039. The City completed the refunding to reduce its total debt service payments over the following 21 years by $3,838,338 and to obtain an economic gain of $2,960,278 (difference between the present values of the old and the new debt service payments).
2023 Lease Revenue Refunding Bonds. On September 13, 2023, the San Luis Obispo Public Financing Authority issued $45,780,000 in Lease Revenue Bonds with premium of $3,707,639 for the construction of the Cultural Arts District Parking Structure and to refund the 2012 Lease Revenue Bonds. Debt service payments of approximately $2.8 million per year are expected to be paid from revenues generated by the City’s Parking Fund through December 2053. Of the original bond issuance, $1,920,000 was used for financing governmental activities related to the original bonds and the remainder was used for business-type activities. The refunding of 2012 lease revenue bond reduced its total debt service payments over 7 years by $484,439 and to obtain an economic gain of $56,492.

The bonds bear 5% interest and are due in annual installments on December 1 through December 1, 2053. In the Statement of Net Position, the 2023 bonds include the related unamortized premium which is being amortized and charged to expense over the term of the 2023 bonds. At June 30, 2025, the unamortized premium in the governmental activities was $99,503. 108

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 7: Long Term Debt (Continued)
Subscription Based Information Technology Arrangements
Application Software Technology (AST). AST arrangement is a five-year agreement, initiated on September 1, 2021 with an annual payment of $20,400. The city has used a 2.88% for this arrangement based on similar debt during the same fiscal year. There are no options to extend the arrangement or purchase the software. The agreement was paid off during fiscal year 2025. eScribe. eScribe arrangement is a three-year arrangement, initiated on February 17, 2021. The city pays the vendor $18,110 annually with 2.5% increase. The city has used a 2.85% for this arrangement based on similar debt during the same fiscal year. The arrangement will automatically renew for an additional Term unless notice of cancellation is received 60 days prior to the expiration of the Term.

ESRI ArcGIS Online. ESRI ArcGIS Online arrangement is a three-year arrangement, initiated on July 8, 2020. The payment amount on the city is based on the price of quote. The city has used a 2.85% for this arrangement based on similar debt during the same fiscal year. The city decided to sign another three-year renewal for the arrangement until July 6, 2026.

Office 365. Office 365 arrangement is a three-year agreement, initiated on July 1, 2022 with an annual payment of $189,126. The city has used a 2.85% for this arrangement based on similar debt during the same fiscal year. An extended term feature that allows Online Services to continue month-to-month is available. The city allocates this arrangement for both governmental and business entity funds. The agreement was paid off during fiscal year 2025.

At June 30, 2025, the aggregate maturities of the aforementioned subscription based I.T. agreements were as follows:

For the Year Ending June 30, Principal Interest Total
2026 $ 51,516 $ 1,912 $ 53,428
2027 13,681 456 14,137
2028 9,515 96 9,611
$ 74,712 $ 2,464 $ 77,176
109

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

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

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

The bonds bear interest from 3.00% to 5.00% and are due in annual installments on June 1, through June 1, 2039 that range from $255,000 to $1,250,000. At June 30, 2025, the principal amount outstanding that pertains to business-type activities was $3,620,775 of the total $11,440,000 outstanding.

In the Statement of Net Position, the 2018 bonds include the related unamortized premium which is being amortized and charged to expense over the term of the 2018 bonds. At June 30, 2025, the unamortized premium that pertains to business-type activities was $372,330.

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

At June 30, 2025, the principal amount outstanding on the bonds was $6.845.000.

The City has pledged future water system revenues, net of specific operating expenses, to repay the bonds on parity with a pledge that services all parity obligations. The bonds are payable solely from water customer net revenues and any moneys in the bond service fund and the reserve fund. For the year ended June 30, 2025, principal and interest paid, and total customer net revenues were $886,500 and $6,173,810, respectively. In the Statement of Net Position, the bonds include the related unamortized premium which is being amortized and charged to expense over the term of the bonds. At June 30, 2025, the unamortized premium was $1,005,391.
2023 Lease Revenue Refunding Bonds. On September 13, 2023, the San Luis Obispo Public Financing Authority issued $45,780,000 in Lease Revenue Bonds with premium of $3,707,639 for the construction of the Cultural Arts District Parking Structure and to refund the 2012 Lease Revenue Bonds. Debt service payments of approximately $2.8 million per year are expected to be paid from revenues generated by the City’s Parking Fund through December 2053. Of the original bond issuance, $43,860,000 was used for financing the construction of the Cultural Arts District Parking Structure and the remainder was used for governmental-type activities.

At June 30, 2025, the principal amount outstanding on the bonds was $43,220,000 with unamortized premium of $3,355,032. 110

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 7: Long Term Debt (Continued)
At June 30, 2025, the aggregate maturities of the business-type revenue bonds were as follows:

Loans
2001 CIEDB State Loan. In 2001, the City obtained a note in the amount of $7,765,900 to go towards expanding the Marsh Street parking structure. The note bears an interest rate of 3.37% due in semi-annual installments on February 1 and August 1 through August 31, 2031 that range from $169,000 to $396,000. At June 30, 2025, the principal amount outstanding on the loan was $2,537,058.
2009 Infrastructure and Economic Development Bank Loan– Tank Farm Lift Station. In 2009, the City obtained a note in the amount of $10,000,000 to go towards the Tank Farm lift station and main sewer project. The note bears an interest rate of 3.25% due in annual installments on December 1 through December 1, 2037 that range from $212,600 to $520,744. At June 30, 2025, the principal amount outstanding on the loan was $5,627,721.

The City has pledged future sewer system revenues, net of specific operating expenses, to repay the loan. The loan is payable solely from sewer customer net revenues. For the year ended June 30, 2025, principal and interest paid, and total customer net revenues were $549,999 and $14,744,737, respectively.
2018 Clean Water State Revolving Fund Loan. In 2018, the City Council approved the Clean Water State Revolving Fund loan agreement between the City of San Luis Obispo and the California State Water Resources Control Board for a $140 million loan for the Water Resource Recovery Facility Project. The City will receive $4 million in principal forgiveness and the remaining $136 million will be repaid over 30 years. The applicable interest rate was set at 1.8%. As of June 30, 2025, the City had fully drawn down the loan and had an outstanding principal balance of $134,230,838. The loan requires a $4.9 million reserve, which is reflected in the Sewer Fund.
2020 CIEDB State Loan. In 2020, the City obtained a note in the amount of $14,300,000 for improvements to the City’s Water Treatment Plant to provide enhanced reliability and energy and operational efficiencies. The note bears an interest rate of 2.5% and a term of 20 years. At June 30, 2025, the City had partially drawn down the loan and had an outstanding principal balance of $10,484,882.

For the Year Ending June 30, Principal Interest Total
2026 $ 1,566,550 $ 2,640,122 $ 4,206,672
2027 1,528,225 2,560,920 4,089,145
2028 1,603,575 2,483,633 4,087,208
2029 1,687,375 2,402,455 4,089,830
2030 1,786,175 2,317,086 4,103,261
2031-2035 10,260,975 10,161,916 20,422,891
2036-2040 6,827,900 7,952,613 14,780,513
2041-2045 7,965,000 6,150,125 14,115,125
2046-2050 10,225,000 3,888,125 14,113,125
2051-2054 10,235,000 1,055,625 11,290,625
Subtotal 53,685,775 41,612,620 95,298,395
Unamortized bond Premium 4,730,753 - 4,730,753
Total $ 58,416,528 $ 41,612,620 $ 100,029,148
111

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 7: Long Term Debt (Continued)
At June 30, 2025, the aggregate maturities of the aforementioned business-type loans were as follows:

Installment Sale Agreements
US Bancorp 2014 Wastewater Lease. In 2013, the Board entered into an installment sale contract financing $7,479,000 to finance the acquisition and installation of improvements to its water reclamation facility. The note bears an interest rate of 2.8994% due in annual installments on June 1 and December 1 through December 1, 2028 that range from $372,900 to $607,200. At June 30, 2025, the principal amount outstanding on the loan was $2,327,976.

At June 30, 2025, the aggregate maturities of the aforementioned business-type installment sale agreements were as follows:

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

Special Assessment Debt Without City Commitment
Special assessment districts have been established in various parts of the City to provide improvements to properties located in those districts. Properties in these districts are assessed for the cost of improvements; these assessments are payable solely by property owners over the term of the debt issued to finance these improvements. The City is not legally or morally obligated to pay these debts or be the purchaser of last resort of any foreclosed properties in these special assessment districts, nor is it obligated to advance City funds to repay these debts in the event of default by any of these districts. At June 30, 2025, the balances of these Districts’ outstanding debt were as follows:

City of San Luis Obispo Community Facilities District No.2019-1 Special Tax Bonds, Series 2021 $19,380,000 For the Year Ending June 30, Principal Interest Total
2026 $ 4,819,807 $ 2,834,415 $ 7,654,222
2027 4,876,710 2,777,171 7,653,881
2028 4,978,670 2,674,856 7,653,526
2029 5,082,886 2,570,275 7,653,161
2030 5,189,409 2,463,375 7,652,784
2031-2035 26,366,685 10,685,671 37,052,356
2036-2040 26,329,470 7,981,846 34,311,315
2041-2045 23,425,966 5,583,026 29,008,992
2046-2050 25,611,581 3,397,410 29,008,992
2051-2054 26,199,315 1,007,879 27,207,194
$ 152,880,499 $ 41,975,923 $ 154,009,201
For the Year Ending June 30, Principal Interest Total
2026 $ 557,280 $ 59,431 $ 616,711
2027 573,441 43,035 616,476
2028 590,071 26,164 616,235
2029 607,184 8,804 615,988
$ 2,327,976 $ 137,434 $ 2,465,410
112

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 8: Pension Plans
The City contributes to the California Public Employees’ Retirement System (CalPERS) for its employees. The City participates in one agent multiple-employer plan for its miscellaneous employees (Miscellaneous Plan) and one cost-sharing multiple-employer plan for its safety employees (Safety Plan). The Miscellaneous Plan is described in the first section of the footnote under AgentMultiple Employer Plan and the Safety Plan follows and is described in the second section of the footnote under Cost-Sharing Employer Plan. A summary of the government-wide balances for all Plans at June 30, 2025 are as follows:

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

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

The Miscellaneous Plan’s provisions and benefits by tier in effect at June 30, 2025, are summarized as follows:

Net Pension Deferred Outflows Deferred Inflows Pension
Liability of Resources of Resources Expense
Miscellaneous Plan $ 93,797,071 $ 22,282,043 $ - $ 15,424,028 Safety Plan 84,198,128 28,874,744 4,357,953 14,946,585
Total Government-Wide $ 177,995,199 $ 51,156,787 $ 4,357,953 $ 30,370,613 Prior to On or after On or after
Hire date December 6, 2012 December 6, 2012 January 1, 2013 Benefit formula 2.7% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 63 52 - 67
Monthly benefits, as a % of
eligible compensation 2.0% to 2.7% 1.092% to 2.418% 1.0% to 2.5% Required employee contribution rates 7.520% 7.520% 7.00% Required employer contribution rates 10.530% 10.530% 10.530% Required unfunded accrued liability payment -
(1)
-
(1) $ 6,938,929
(1) -Combined with on or after January 1, 2013
Tiers within the Miscellaneous Plan
113

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

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

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

Employees Covered. As of the measurement date June 30, 2024, the following employees were covered by the benefit terms for the Miscellaneous Plan:

Contributions. Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employees that are classified as unrepresented management or unrepresented confidential contribute 1.5% of pay toward the cost of the City’s share of the annual required contribution. During the measurement period, the City contributions totaled $12,983,364.

Net Pension Liability
The City’s net pension liability for the Miscellaneous Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Assumptions. The total pension liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions:

Miscellaneous Plan
Inactive employees or beneficiaries
currently receiving benefits 505
Inactive employees entitled to but
not yet receiving benefits 475
Active employees 351
Total 1,331
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increase
Mortality (1)
Post Retirement Benefit Increase
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and review of Acturial Assumptions. Mortality rate incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 CalPERS Experience Study report from Novemvber 2021 that can be found on the CalPERS website.

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

2.30%

6.90%
Entry-Age Normal Cost Method
June 30, 2024
Miscellaneous Plan
June 30, 2023
114

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

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

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

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

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

Assumed
Asset
Asset Class Allocation Real Return (1) (2)
Global Equity - Cap-weighted 30.0% 4.54%
Global Equity - Non-Cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
Miscellaneous Plan
115

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

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

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

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

Plan Net
Total Fiduciary Pension
Pension Net Liability/
Liability Position (Asset)
Balance at June 30, 2023(measurement date) $ 271,720,540 $ 176,934,611 $ 94,785,929 Service cost 5,225,836 - 5,225,836
Interest on the total pension liability 18,772,636 - 18,772,636 Differences between expected and
actual experience 5,864,043 - 5,864,043
Contribution - employer - 11,026,090 (11,026,090)
Contribution - employee - 2,974,063 (2,974,063)
Net investment income - 16,995,192 (16,995,192)
Benefit payments, including refunds
of employee contributions (16,260,601) (16,260,601) -
Administrative expense - (143,972) 143,972
Net changes 13,601,914 14,590,772 (988,858)
Balance at June 30, 2024 (measurement date) $ 285,322,454 $ 191,525,383 $ 93,797,071 Miscellaneous Plan
1% Decrease 5.90%
Net Pension Liability $ 130,213,879
Current Discount Rate 6.90%
Net Pension Liability $ 93,797,071
1% Increase 7.90%
Net Pension Liability $ 63,685,031
116

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 8: Pension Plans (Continued)
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2025, the City’s pension expense for the Miscellaneous Plan was $15,424,028. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

The deferred outflows of resources related to contributions subsequent to the measurement date of $12,983,365 will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Payable to the Pension Plan
At June 30, 2025, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2025.

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

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to
measurement date $ 12,983,365 $ -
Changes in assumptions 738,515 -
Differences between expected and
actual experiences 5,948,958 -
Net differences between projected and
actual earnings on plan investments 2,611,205 -
Total $ 22,282,043 $ -
Miscellaneous Plan
Measurement Period
Ended June 30 Amount
2025 $ 3,898,053
2026 6,610,849
2027 (233,640)
2028 (976,584)
2029 -
$ 9,298,678
Miscellaneous Plan
117

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

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

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

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

The Plan’s provisions and benefits within each tier in effect at June 30, 2025, are summarized as follows:

The Safety Tier 1 is closed to new entrants.

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

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

For the year ended June 30, 2025, the contributions recognized as part of net pension liabilities were $10,004,005.

Police Fire Police Fire
Prior to Prior to On or after On or after
Hire date December 6, 2012 August 30, 2012 December 6, 2012 August 30, 2012 Benefit formula 3.0% @ 50 3.0% @ 50 2.0% @ 50 3.0% @ 55 Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 55 50-55 50 - 55
Monthly benefits, as a % of eligible compensation 3.00% 3.00% 2.0% to 2.7% 2.4% to 3% Required employee contribution rates 8.990% 8.990% 8.950% 8.990% Required employer contribution rates 25.640% 29.090% 21.780% 24.790% Required unfunded accrued liability payment $ 6,359,352 $ - (1) $ - $ -
Police PEPRA Fire PEPRA
On or after On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 2.7% @ 57 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50-57 50-57
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 2.0% to 2.7% Required employee contribution rates 13.750% 13.750%
Required employer contribution rates 14.500% 14.500%
Required unfunded accrued liability payment $ - $ -
(1) - Combined with Police Tier 1
Safety Tier 1 Safety Tier 2
118

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 8: Pension Plans (Continued)
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2025, the City reported a net pension liability for its proportionate share of the Plan’s net pension liability of $84,198,128.

The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2024, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability as of the measurement dates of June 30, 2023 and 2024 was as follows:

For the year ended June 30, 2025, the City recognized pension expense of $14,946,585 for the Safety Plan. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Proportionate Share
Percentage share at 6/30/2023 0.69198%
Percentage share at 6/30/2024 0.69428%
Change - Increase/(Decrease) 0.00229%
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 11,061,415 $ $ - Changes in assumptions 2,074,469 -
Differences between expected and actual experiences 6,871,316 223,416 4,069,754 -
Net Difference between employer's contributions and
proprtionate chare of contributions 4,797,790 -
Change in employer's proportion - 4,134,537
Total $ 28,874,744 $ 4,357,953
Differences between projected and actual investment earnings Safety Plan
119

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 8: Pension Plans (Continued)
Pension contributions subsequent to the measurement date of $11,061,415 are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30,2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Actuarial Assumptions. The total pension liabilities in the June 30, 2023, actuarial valuations for the Safety Plan was determined using the following actuarial assumptions:

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

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

Measurement Period
Ended June 30 Amount
2025 $ 4,592,464
2026 10,073,241
2027 182,156
2028 (1,392,485)
$ 13,455,376
Safety Plan
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Post Retirement Benefit Increase
Mortality (1)
Varies by Entry Age and Service
Contract COLA up to 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies
Derived using CalPERS' membership data for all funds
(1) The mortatily table used was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report that can be found on the Entry-Age Normal Cost Method

6.90%

2.30%
Safety Plan
June 30, 2023
June 30, 2024
120

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

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

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

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

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

Payable to the Pension Plan
At June 30, 2025, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2025
Assumed
Asset
Asset Class Allocation Real Return (1) (2)
Global Equity - Cap-weighted 30.0% 4.54%
Global Equity - Non-Cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
(1) An expected inflation of 2.30% used for this period (2) Figures are based on the 2021-22 Asset Liability Management Study Safety Plan
1% Decrease 5.90%
Net Pension Liability $ 119,717,528
Current Discount Rate 6.90%
Net Pension Liability $ 84,198,128
1% Increase 7.90%
Net Pension Liability $ 55,148,252
121

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

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

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

During the fiscal year, the City contributed $22,462 to the Plan and Participants contributed $79,309. There were no Plan forfeitures.

As of June 30, 2023, the City had $0 payable to the Plan.

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

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

During the fiscal year, the City contributed $22,348 to the Appointed Officials Plans. There were no Plan forfeitures. As of June 30, 2023, the City had $0 payable to the Plan.

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

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

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

Miscellaneous retires who are PEPRA new hires are eligible at age 52. For each retiree enrolled in a CalPERS medical plan, the employer will pay the required statutory PEMHCA minimum, which is $157 per month per retiree in calendar year 2024 and $158 per month per retiree in calendar year 2025. This amount will increase with the health care component of CPI, as announced by the CalPERS Board each year. The retiree must pay the difference between the premium amount, which depends upon the medical plan benefits selected, and the employer-paid minimum. In addition, the City pays 50% of the premium up to the retiree’s age of 65 for one grandfathered executive management retiree hired prior to August 2000.

There is no OPEB provided to terminated vested employees. The employer-paid amount will continue to a surviving spouse if the retiree elects a CalPERS survivor annuity. There are no required employee contributions, although the retiree must pay the difference between the premium and the employer-paid amount. The employer is contributing the full Actuarially Determined Contribution. 122

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 9: Other Post-Employment Benefits (OPEB) (Continued) Employees Covered. At June 30, 2024, the measurement date, the following number of employees were covered by the benefit terms:

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

The City prefunds the plan through CERBT by contributing at least 100% of the annual required contribution. For the measurement period, the City’s contributions totaled $740,550.

Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2024 and the total OPEB liability used to the calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023, based on the following actuarial methods and assumptions:

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

OPEB Plan
Inactive employees or beneficiaries
currently receiving benefits 184
Inactive employees entitled to but
not yet receiving benefit payments 255
Active employees 477
Total 916
Actuarial Valuation Date June 30, 2023
Measurement Date June 30, 2024
Contribution Policy Contributes full ADC
Actuarial Assumptions:

Discount Rate and 6.25% at June 30, 2024 and 6.25% at June 30, 2023 expected Long-Term Rate of Expected City contributions projected to keep Return on Assets sufficient plan assets to pay all benefits from trust General Inflation 2.50% annually
Mortality, Retirement, Disability, Rates from CalPERS 2000-2019 Experience Study Termination
Mortality Improvement Post-retirement mortality projected fully generational with Scale MP-2021
Salary Increases Aggregate - 2.75%
Merit - CalPERS 2000-2019 Experience Study
Medical Trend Non-Medicare - 8.5% for 2025, decreasing to an ultimate rate of 3.45% in 2076 and later years.

Medicare - 7.50% (non-Kaiser) for 2025, decreasing to an ultimate rate of 3.45% in 2076 and later years
Medicare - 6.25% (Kaiser) for 2025, decreasing to an ultimate rate of 3.45% in 2076 and later years
PEMHCA Minimum Increases 3.50% annually
Participation at Retirement Currently covered: 70% Currently waived: 15% OPEB Plan
123

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

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

Changes in the Net OPEB Liability
The changes in the net OPEB liability for the June 30, 2024 measurement date are as follows:

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

OPEB Plan
Total Plan Fiduciary Net
OPEB Liability Net Position OPEB Liability
Balance at June 30, 2024 $ 13,239,129 $ 10,954,815 $ 2,284,314 Changes during the year:

Service cost 518,085 - 518,085
Interest on the total OPEB liability 836,877 - 836,877
Contribution - employer - 740,550 (740,550)
Net investment income - 1,202,776 (1,202,776)
Benefit payments, including refunds
of employee contributions (734,364) - -
Administrative expense (9,757) 9,757
Net changes 620,598 1,933,569 (578,607)
Balance at June 30, 2025 $ 13,859,727 $ 12,888,384 $ 1,705,707 124

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

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

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

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

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2025, the City’s OPEB expense was $258,685. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

OPEB Plan
1% Decrease 5.25%
Net OPEB Liability $ 3,459,727
Current Discount Rate 6.25%
Net OPEB Liability $ 1,705,707
1% Increase 7.25%
Net OPEB Liability $ 241,939
OPEB Plan
1% Decrease
Net OPEB Liability $ (65,207)
Current Trend
Net OPEB Liability $ 1,705,707
1% Increase
Net OPEB Liability $ 3,893,194
Deferred Outflows Deferred Inflows
of Resources of Resources
OPEB contributions subsequent to
measurement date $ 1,975,082 $ -
Changes in assumptions 274,338 307,434
Differences between expected and
actual experiences 185,237 2,207,314
Net differences between projected and
actual earnings on plan investments 62,184 -
Total $ 2,496,841 $ 2,514,748
125

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 9: Other Post-Employment Benefits (OPEB) (Continued) OPEB contributions subsequent to the measurement date of $1,975,082 are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:

Payable to the OPEB Plan
At June 30, 2025, the City reported a payable of $0 for the outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2025.

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

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

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

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

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

Fiscal Year
Ended June 30 Amount
2026 $ (465,480)
2027 (133,995)
2028 (341,973)
2029 (268,296)
2030 (210,109)
Thereafter (573,136)
$ (1,992,989)
126

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 11: Interfund Transactions
City had the following short-term interfund receivable and payable balances as of June 30, 2025:

City had the following long-term interfund receivable and payable balances as of June 30, 2025:

Interfund transfers for the year ended June 30, 2025 consist of the following:

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

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

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

Due from Other
Funds
Due to Other
Funds
General Fund $ 43,089 $ -
Nonmajor Governmental Funds 67,478 110,567
Total $ 110,567 $ 110,567
Advances from
Other Funds
Advances to
Other Funds
General Fund $ - $ 4,845,000
Parking Fund 4,845,000 -
Total $ 4,845,000 $ 4,845,000
Non-Major
General Capital Outlay Governmental
Transfer Out Fund Fund Funds Total
General Fund $ - $ 23,698,344 $ 10,359,699 $ 34,058,043 Non-Major Governmental Fund 2,614,610 345,107 - 2,959,717 Water Fund 1,387,992 - - 1,387,992
Sewer Fund 1,451,616 - - 1,451,616
Parking Fund 375,212 - - 375,212
Total $ 5,829,430 $ 24,043,451 $ 10,359,699 $ 40,232,580

Transfer In
127

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

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

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

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

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

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

The following segment financial information for the Whale Rock Commission and the Water Fund’s related investment in the joint venture is presented as of and for the year ended June 30, 2025:

City's Investment
Joint Venture in Joint Venture
Total assets $ 7,411,147 $ 4,079,835
Total liabilities 163,072 89,771
Fund balance $ 7,248,075 $ 3,990,064
Total revenues $ 3,130,087 $ 1,723,113
Total expenditures 2,097,440 1,154,641
Excess of revenues over expenditures $ 1,032,647 $ 568,472 128

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

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

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

Financial Information. The City allocates a portion of its Transportation Development Act funds directly to the Authority. During 2024-25 the City contributed approximately $1,237,660 of these funds to the Authority. The City's share of assets, liabilities, and fund equity has not been calculated by the Authority and therefore is not known to the City; however, based on the City's limited financial participation in the Authority, any such assets, liabilities, or equity are not believed to be significant to the basic financial statements taken as a whole. Separate financial statements are available from the Authority, 179 Cross Street, Suite A, San Luis Obispo, CA 93401.

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

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

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

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

Each project participant, including the City, has entered into an agreement to provide for the development, financing, construction, operation and maintenance of the Project. The agreement is a “take-or-pay” obligation: the City is obligated to pay amounts specified in the agreement whether or not water is delivered. The City is required to pay an amount equal to its share of various capital expenses relating to the funding of design costs, engineering, planning, environmental mitigation, equipping new facilities and/or construction efforts, accounting services, project administration and management, installation, grading, razing and building the Project. The City is also required to pay for its share of operating and maintenance costs. The City records these payments as operating expenses in its water enterprise fund.
129

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

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

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

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

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

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

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

Actual 2025 $ 4,621,210
Projected:
2026 4,622,040
2027 4,615,840
2028 4,621,896
2029 4,622,732
2030-34 23,093,901
2035-39 23,104,565
2040-41 4,697,841
Nacimiento Water Supply Obligations
130

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

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

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

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

During the past three fiscal years, none of the protection programs experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured coverage in 2024-25. CJPIA covers workers’ compensation claims up to a pooled limit of $1 million per occurrence and provides excess coverage to statutory limits with a group purchased commercial insurance policy. The City pays an annual contribution to CJPIA and may share in any member refunds in the event that pooled funding exceeds the cost of pooled claims and claim-related expenses, or the City may be required to pay additional contributions based upon CJPIA’s operating results.

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

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

Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage from coverage in 2024-

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

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

Claims liabilities in the governmental funds are generally liquidated by the General Fund. 131

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

Note 13: Risk Management (Continued)
The last actuarial study to determine the undiscounted outstanding claims liability was completed for the year ended June 30, 2025.

The liability was estimated based on the actuarial study and considered claims asserted and paid, and the time limitations for filing claims. There are no estimates for claims incurred but not reported because the time limit for filing claims has elapsed. The estimated asset at June 30, 2025 is calculated as follows:

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

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

Self-insurance activity as of and for the year ended June 30, 2025 is summarized is as follows:

Interest earnings $ 12,010
Claims expense 23,067
Estimated liability for reported claims and settlement expenses (510,635) Assets on deposit 535,138
Estimated unpaid claims asset $ 24,503
Changes in the balances of claim assets during the past two fiscal years are as follows:

Estimated unpaid claims asset June 30, 2023 $ 256,718
Claim payments and related expenditures reimbursement (164,804) Change in estimated claims asset June 30, 2024 52,030
Interest earnings 14,417
Estimated unpaid claims asset June 30, 2024 158,361
Claim payments and related expenditures reimbursement (176,862) Change in estimated claims asset June 30, 2025 30,994
Interest earnings 12,010
Estimated unpaid claims asset June 30, 2025 $ 24,503
132

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

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

Note 15: Construction and Other Significant Commitments Construction and other significant commitments as of June 30, 2025, including encumbrances outstanding at year-end, are as follows:

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

Note 16: Fund Balance Deficiency
As of June 30, 2025, the City had fund with negative fund balance for LOVR Sub-Area Fee Fund and Debt Service fund as below.

Note 17: New Accounting Standards
Accounting Standards Adopted
 GASB Statement No. 102 – Certain Risk Disclosures – The primary objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints.

General Fund $ 2,559,825
Special Revenue Funds 168,914
Capital Project Funds 22,947,269
Enterprise Funds:

Water 2,573,113
Sewer 9,466,165
Parking 15,574,977
Transit 3,347,354
Total $ 56,637,617
Funds Deficiency
LOVR Sub-Area Fee $ (2,452)
Debt Service (43,089)
Total $ (45,541)
133

City of San Luis Obispo, California
Notes to the Financial Statements
June 30, 2025

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

Note 18: Prior Period Adjustments
During 2025, the City recorded the following prior period adjustments:
(1) Error correction to Debt Service Fund, Water Fund, Sewer Fund and Parking Fund - Beginning fund balance of the Debt Service Fund, Water Fund, Sewer Fund and Parking fund were restated due to the reclassification of prior year debt services interest payments to correct funds. The City recorded the debt services payments in wrong funds last year. An adjustment was necessary to properly restate the cash and investment held by fiscal agent account. Therefore, cash and investment held by fiscal agent, were overstated by $91,366 total in Water Fund, Sewer Fund and Parking Fund, and net position was overstated by $91,366 in total for the fiscal year ended June 30, 2024. Cash and investment held by fiscal agent were understated by $91,366 in Debt Service Fund, and fund balance was understated by $91,366 in Debt Service Fund for the fiscal year ended June 30, 2024. (2) Error correction to Affordable Housing Fund – Unavailable revenue and fund balances were restated to record the interest revenue in the Affordable Housing Fund. The interest revenue was not recorded correctly in the past and adjustment was necessary to properly restate the unavailable revenue balance. Therefore, unavailable revenue in the Affordable Housing fund was overstated by $70,654, and fund balance was understated by $70,654 for the fiscal year ended June 30, 2024. (3) Error correction to General Agency Fund, Asset Forfeiture Available Fund and Police Evidence Available Fund – Cash and fund balances were restated to move the available funds in General Agency Fund for the City to use to the Asset Forfeiture Available Fund and Police Evidence Available Fund. The available funds in the custodial funds for the City to use were not recorded correctly into the City’s special revenue funds. Therefore, cash in the General Agency Fund was overstated by $128,944, net position was overstated by $128,944 for the fiscal year ended June 30, 2024. Cash in the Asset Forfeiture Available Fund and Police Evidence Available Fund in total were understated by $128,944, and fund balance was understated by $128,944 for the fiscal year ended June 30, 2024.
6/30/2024
As Previously
Reported
Error Correction
(1)
Error Correction
(2)
Error Correction
(3)
6/30/2024
As Restated
Governmental Activities $ 249,796,507 $ 91,366 $ 70,654 $ 128,944 $ 250,087,471 Business-type Activities 275,530,186 (91,366) - - 275,438,820 Nonmajor Funds 55,769,033 91,366 70,654 128,944 56,059,997 Water Fund 109,961,981 (5,032) - - 109,956,949
Sewer Fund 122,333,448 (5,561) - - 122,327,887
Parking Fund 34,133,265 (80,773) - - 34,052,492
Custodial Funds 36,487,382 - - (128,944) 36,358,438
134

REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
135

136

City of San Luis Obispo, California
Budgetary Comparison Schedule
General Fund
For the Fiscal Year Ended June 30, 2025
Original
Budget
Final
Budget Actual
Variance With
Final Budget
Positive
(Negative)
REVENUES:

Taxes and franchise fees:

Sales and use tax - general $ 23,962,099 $ 23,962,099 $ 22,911,086 $ (1,051,013) Transaction and use tax - Local Revenue Measure 31,855,000 31,855,000 30,926,285 (928,715) Property tax 16,371,353 16,371,353 17,242,485 871,132
Transient occupancy tax 10,586,256 10,586,256 11,417,888 831,632 Utility users tax 6,622,639 6,622,639 7,501,436 878,797 Property tax in lieu of VLF 6,919,114 6,919,114 7,196,670 277,556 Franchise taxes 2,091,800 2,091,800 2,622,351 530,551
Business tax 4,417,338 4,417,338 3,138,272 (1,279,066)
Cannabis Tax - - 814,502 814,502
Real property transfer tax 155,919 155,919 484,692 328,773 Total taxes 102,981,518 102,981,518 104,255,667 1,274,149 Fines, forfeitures and penalties 203,071 203,071 340,172 137,101 Use of money and property 476,328 476,328 4,892,409 4,416,081 Subventions and grants:

Other State and Federal grants 2,335,624 11,087,624 4,155,356 (6,932,268) Other subventions and grants 566,500 566,500 530,680 (35,820) Total subventions and grants 2,902,124 11,654,124 4,686,036 (6,968,088) Charges for services:

Public safety:

Police 762,105 762,105 719,159 (42,946)
Fire:

Medical emergency recovery 580,136 580,136 726,322 146,186 Fire safety/hazardous materials permits 991,810 991,810 973,336 (18,474) Other fire revenues 152,861 152,861 177,215 24,354
Community development:

Planning and zoning fees 2,636,482 2,636,482 1,677,398 (959,084) Construction plan and check inspections 4,008,849 4,008,849 3,470,346 (538,503) Infrastructure plan check and inspections - 683,441 - 683,441 Culture and recreation:

Adult athletic fees 248,840 248,840 208,446 (40,394)
Youth athletic fees 958,618 958,618 1,350,590 391,972
Rental and use fees 400,014 400,014 720,290 320,276
Aquatics 344,120 344,120 393,263 49,143
Golf course 270,000 270,000 375,095 105,095
General government:

Other service charges 733,285 733,285 936,676 203,391
Total charges for services 12,087,120 12,087,120 12,411,577 324,457 Impact Fees - 118,432 - 118,432
Other revenues 305,658 326,658 136,217 (190,441)
Total Revenues 118,955,819 127,728,819 126,914,629 (814,190) (Continued)
137

City of San Luis Obispo, California
Budgetary Comparison Schedule
General Fund, continued
For the Fiscal Year Ended June 30, 2025

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

Public Safety:

Police protection:

Administration 2,894,638 2,538,303 2,482,077 412,561
Investigations 3,612,738 3,738,359 3,647,834 90,525
Neighborhood services 323,317 331,180 304,657 26,523
Support services 3,533,903 3,660,137 3,672,725 (12,588) Patrol services 12,536,033 13,186,464 13,627,569 (441,106) Traffic safety 977,059 948,997 922,256 54,803
Total police protection 23,493,292 24,787,837 24,657,118 130,719 Fire and environmental safety:

Administration 1,514,833 1,343,924 1,538,177 (23,344)
Emergency response 13,311,896 14,921,700 15,169,981 (248,281) Fire Apparatus Services 638,946 693,307 631,944 61,363
Hazard protection 1,222,332 1,167,937 1,075,918 146,414 Training 108,668 113,448 108,109 559
Disaster preparedness 200,876 208,603 99,079 109,524
Mobile Crisis Unit 281,066 195,614 163,941 117,125
Total fire and environmental safety 18,950,508 16,972,642 18,787,149 163,359 Total public safety 43,738,345 40,465,934 43,444,267 294,078 Transportation:

Transportation planning and engineering 1,179,093 1,178,201 1,139,636 39,457 Street and sidewalk maintenance 2,475,330 2,521,251 2,458,323 62,928 Traffic signals and street lights 594,143 727,439 705,483 21,956 Creek and flood protection 1,627,498 1,596,887 1,533,724 93,774 Total transportation 6,055,281 5,844,561 5,837,166 218,115 Culture and Recreation:

Recreation programs:

Recreation administration 1,029,304 971,535 978,461 50,843 Aquatics/Sinsheimer park facilities 639,890 627,884 706,839 (66,949) Children's services 1,504,633 1,546,205 1,557,030 (10,825) Facilities 382,687 390,589 403,275 12,686
Special events 10,500 10,500 1,121 9,379
Recreational sports 740,317 758,875 670,957 87,918
Golf course 835,133 846,164 827,151 19,013
Ranger services 916,900 949,570 882,011 67,559
Maintenance programs:

Swim center maintenance 697,871 729,661 664,404 65,257
Parks and landscape maintenance 4,338,737 4,479,909 4,081,818 398,091 Tree maintenance 290,564 325,865 229,260 96,605
Cultural and social service programs: Human relations
Human relations 619,222 693,587 567,532 126,055
Cultural activities 365,161 365,161 356,625 8,536
Total leisure, cultural and social services 12,301,144 12,777,967 11,913,798 864,169 (Continued)
138

City of San Luis Obispo, California
Budgetary Comparison Schedule
General Fund, continued
For the Fiscal Year Ended June 30, 2025

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

Planning:

Commissions and communities 37,240 37,240 10,187 27,053 Community development administration 1,059,524 1,017,994 972,655 86,869 Long-range planning 1,145,326 1,044,008 899,156 144,852 Development review 2,234,614 2,275,244 1,896,174 379,070 Natural resource protection 973,285 1,313,798 1,247,062 66,736 Construction regulation:

Building and safety 3,194,956 3,652,043 2,886,384 765,659 CIP project engineering 3,029,946 3,151,912 2,819,886 332,026 Economic health:

Community promotion 397,816 352,752 351,412 1,340
Economic development 934,062 860,509 814,416 46,093
Housing 1,197,570 1,260,280 1,200,261 60,019
Total community development 14,162,809 15,007,310 13,097,593 1,909,717 General Government:

Legislation:

Council 240,816 251,446 235,270 16,176
General administration:

City administration 2,318,898 2,435,017 2,147,298 287,719 Public works administration 1,571,031 1,637,305 1,486,040 151,265 Legal services:

City attorney 1,514,049 1,758,600 1,652,744 105,856
City clerk services:

Administration and records 774,801 842,836 778,365 64,471 Organization support services:

Human resource administration 7,890,758 8,064,649 5,842,318 2,222,331 Finance and administration 2,616,190 2,427,346 2,104,693 322,653 Revenue management 483,061 511,787 487,743 24,044
Accounting 1,439,515 1,464,465 1,481,067 (16,602)
Finance non-departmental 893,338 902,030 366,213 535,817 Network services 3,574,551 3,598,745 3,282,048 316,697
Wellness program 55,819 55,819 38,744 17,075
Building and vehicle maintenance:

Buildings 1,558,325 1,535,196 1,526,119 9,077
Vehicle and equipment maintenance 1,488,340 1,532,139 1,472,005 60,134 Total general government before cost
reimbursement 26,419,490 27,017,379 22,900,667 4,116,712 Total general government 21,649,771 21,051,882 17,533,059 4,116,712 Debt Service
Principal - 360,260 - (360,260)
Interest and Fiscal Charges - 22,321 - (22,321)
Total Expenditures 93,826,330 99,228,674 92,208,464 7,020,210 (Continued)
139

City of San Luis Obispo, California
Budgetary Comparison Schedule
General Fund, continued
For the Fiscal Year Ended June 30, 2025

Original
Budget
Final
Budget Actual
Variance With
Final Budget
Positive
(Negative)
Excess of Revenues Over Expenditures 25,129,489 28,500,145 34,706,165 6,206,020 Other Financing Sources (Uses)
Transfers in 5,557,812 5,557,812 5,829,430 271,618
Transfers out (28,155,223) (34,045,195) (34,058,043) (12,848) Total other financing uses (22,597,411) (28,487,383) (28,228,613) 258,770 Net Change in Fund Balance 2,532,078 12,762 6,477,552 $ 6,464,790 Fund Balance, Beginning of the Year 45,329,766 45,329,766 45,329,766 Fund Balance, End of Year $ 47,861,844 $ 45,342,528 $ 51,807,318 140

City of San Luis Obispo, California
Schedule of the Changes in the Net Pension Liability and Related Ratios Miscellaneous Agent Multiple-Employer Plan
June 30, 2025
Last 10 Years
Fiscal Year 2024-25 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 Measurement Period 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Total pension liability:

Service Cost $ 5,225,836 $ 4,695,253 $ 4,364,490 $ 3,939,785 $ 3,681,240 $ 4,042,717 $ 4,328,129 $ 4,124,832 $ 3,580,882 $ 3,578,172 Interest on total pension liability 18,772,636 17,884,042 17,090,797 16,589,680 16,160,011 15,531,812 14,778,918 14,197,897 13,688,523 13,193,597 Changes of Benefits Terms - 293,205Difference between expected and actual experience 4,537,569 5,864,043 818,065 (755,414) 1,869,474 2,966,923 1,445,049 694,843 (1,160,933) (2,433,791) Changes in assumptions - - 8,123,651 - - - (1,292,326) 11,219,603 - (3,057,724) Benefit payments, including refunds of employee contributions (16,260,601) (15,400,292) (14,509,974) (13,518,666) (12,892,847) (12,061,701) (10,740,816) (10,161,053) (9,476,508) (8,808,668) Net change in total pension liability 13,601,914 12,009,777 15,887,029 6,255,385 8,817,878 10,479,751 8,518,954 20,076,122 6,631,964 2,471,586 Total pension liability - beginning 271,720,540 259,710,763 243,823,734 237,568,349 228,750,471 218,270,720 209,751,766 189,675,644 183,043,680 180,572,094 Total pension liability - ending (a) $ 285,322,454 $ 271,720,540 $ 259,710,763 $ 243,823,734 237,568,349 $ $ 228,750,471 $ 218,270,720 $ 209,751,766 $ 189,675,644 $ 183,043,680 Plan fiduciary net position:

Contributions - employer $ 11,026,090 $ 11,050,993 $ 16,384,823 $ 8,246,755 $ 7,709,918 $ 9,361,882 $ 6,693,987 $ 6,776,849 $ 6,122,173 $ 5,027,356 Contributions - employee 2,974,063 2,606,854 2,269,339 2,056,274 1,889,583 1,775,245 1,820,697 1,841,331 1,666,606 1,509,834 Net investment income 16,995,192 10,485,099 (13,547,758) 32,904,570 7,205,266 9,124,520 10,820,033 13,053,453 677,557 2,673,657 Benefit payments (16,260,601) (15,400,292) (14,509,974) (13,518,666) (12,892,847) (12,061,701) (10,740,816) (10,161,053) (9,476,508) (8,808,668) Net plan to plan resource movement - - - - - (316) (2,936) - - Administrative expense (143,972) (123,771) (110,778) (148,132) (203,824) (97,394) (200,184) (172,935) (72,044) (133,042) Other miscellaneous income/(expense) - - - - 316 (380,153) - - - Net change in plan fiduciary net position 14,590,772 8,618,883 (9,514,348) 29,540,801 3,708,096 8,102,868 8,013,248 11,334,709 (1,082,216) 269,137 Plan fiduciary net position - beginning 176,934,611 168,315,728 177,830,076 148,289,275 144,581,179 136,478,311 128,465,063 117,130,354 118,212,570 117,943,433 Plan fiduciary net position - ending (b) $ 191,525,383 $ 176,934,611 $ 168,315,728 $ 177,830,076 $ 148,289,275 $ 144,581,179 $ 136,478,311 $ 128,465,063 $ 117,130,354 $ 118,212,570 Net pension liability (asset) - ending (a) - (b) $ 93,797,071 $ 94,785,929 $ 91,395,035 $ 65,993,658 $ 89,279,074 $ 84,169,292 $ 81,792,409 $ 81,286,703 $ 72,545,290 $ 64,831,110 Plan fiduciary net position as a percentage of the total pensionliability 67.13% 65.12% 64.81% 72.93% 62.42% 63.20% 62.53% 61.25% 61.75% 64.58% Covered payroll 32,157,208 29,794,206 24,574,829 23,805,348 21,795,380 22,951,725 23,736,588 21,841,841 20,499,668 19,769,997 Net pension liability as percentage of covered
payroll 291.68% 318.14% 371.91% 277.22% 409.62% 366.72% 344.58% 372.16% 353.89% 327.93% Benefit changes. The figures above include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2019 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.Changes in assumptions .There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project comp ound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement rate June 30, 2017 through June 30, 2021, 7.65 % for measurement dates June 30, 2015 through June 30, 2016 and 7.50% for measurement date June 30, 2014. 141

City of San Luis Obispo, California
Schedule of the Pension Plan Contributions
Miscellaneous Agent Multiple-Employer Plan
June 30, 2025
Last 10 Years
Fiscal Year 2024-25 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 Actuarially determined contribution $ 9,588,879 10,874,068 $ 9,573,782 $ 8,851,802 $ 8,246,755 $ 7,709,918 $ 7,093,882 $ 6,693,987 $ 6,776,849 $ 6,122,173 $ Contributions in relation to the actuarially determined contribution (11,026,090) (12,983,365) (11,050,993) (16,384,823) (8,246,755) (7,709,918) (9,361,882) (6,693,987) (6,776,849) (6,122,173) Contribution deficiency (excess) $ (1,437,211) (2,109,297) $ (1,477,211) $ (7,533,021) $ - $ - $ (2,268,000) $ - $ - $ - $ Covered payroll 33,984,175 $ 32,157,208 $ 29,794,206 $ 24,574,829 $ 23,805,348 $ 21,795,380 $ 22,951,725 $ 23,736,588 $ 21,841,841 $ 20,499,668 $ Contributions as percentage of covered payroll 38.20% 34.29% 37.09% 66.67% 34.64% 35.37% 40.79% 28.20% 31.03% 30.97%Actuarial Cost MethodAmortization MethodAmortization PeriodAsset Valuation MethodInflationSalary IncreasesPayroll GrowthDiscount RateRetirement AgeMortality For details, see June 30, 2022 CalPERS Funding Valuation ReportEntry Age Normal The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2024-25 contributions rates are as follows:

The probabilities of mortality are based on the 2021 CalPERS Experience Study.The probabilities of retirement are based on the 2021 CalPERS Experience Study.6.80% Net of Pension Plan Investment and Administrative Expenses; includes inflation2.800%Varies by Entry Age and Service2.30%For details, see June 30, 2022 CalPERS Funding Valuation Report 142

City of San Luis Obispo, California
Schedule of the City's Proportionate Share of the Net Pension Liability Safety Cost-Sharing Plan
As of June 30, 2025
Last 10 Years
Fiscal Year 2024-25 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16Measurement Period 2023-2024 2022-2023 2021-2022 2020-2021 2019-2020 2018-2019 2017-18 2016-17 2015-16 2014-15Proportion of the Collective Net Pension Liability 0.69428% 0.69198% 0.71733% 1.08299% 0.7225% 0.7212% 1.2261% 1.1943% 1.2510% 1.3654%Proportionate Share of the Collective Net Pension Liability $ 84,198,128 $ 86,327,322 $ 82,856,965 $ 58,571,330 $ 78,611,581 $ 73,897,967 $ 71,940,534 $ 71,364,346 $ 64,792,760 $ 56,260,280 Covered payroll $ 12,772,815 $ 11,235,984 $ 12,207,346 $ 10,744,808 $ 9,488,971 $ 11,197,562 $ 11,246,306 $ 10,614,437 $ 10,643,123 $ 10,849,863 Proportionate share of the net pension liability as percentage of covered payroll 659.20% 768.31% 678.75% 545.11% 828.45% 659.95% 639.68% 672.33% 608.78% 518.53%Plan fiduciary net position as a percentage of the total pension liability 78.08% 76.21% 76.68% 88.29% 75.26% 75.26% 75.26% 73.31% 74.06% 78.40%The CalPERS mortality assumptions were adjusted in fiscal year 2019.The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016, and then decreased from 7.65% to 7.15% in fiscal year 2018, and then decreased from 7.15% to 6.9% in fiscal year 2023. 143

Fiscal Year 2024-25 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 Contractually required contribution (actuarially determined) $ 11,061,415 $ 10,004,005 $ 10,016,823 $ 12,756,585 $ 7,631,620 $ 7,167,638 $ 6,416,780 $ 5,910,345 $ 5,549,915 $ 5,074,217 Contribution in relation to the actuarially determined contributions (11,061,415) (10,004,005) (10,016,823) (12,756,585) (7,631,620) (7,167,638) (8,348,780) (5,910,345) (6,299,915) (5,824,217) Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ (1,932,000) $ -$ (750,000) $ $ (750,000) Covered payroll $ 13,473,275 $ 12,772,815 $ 11,235,984 $ 12,207,346 $ 10,744,808 $ 9,488,971 $ 11,197,562 $ 11,246,306 $ 10,614,437 $ 10,643,123 Contributions as a percentage of covered payroll 82.10% 78.32% 89.15% 104.50% 71.03% 75.54% 74.56% 52.55% 59.35% 54.72%The Plan’s proportionate share of aggregate contributions may not match the actual contributions made by the employer during the measurement period. The Plan’s proportionate share of aggregate contributions is based on the Plan’s proportion of fiduciary net position as well as any additional side fund (or unfunded liability) contributions made by the employer during the measurement period.

City of San Luis Obispo, California
Schedule of the City's Pension Contributions
Safety Cost-Sharing Plan
As of June 30, 2025
Last 10 Years
144

Fiscal Year 2024-25 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 Measurement Period 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 Total OPEB liability:

Service Cost $ 518,085 $ 493,787 $ 480,571 $ 423,364 $ 415,244 $ 477,538 $ 463,629 $ 450,125 Interest on total OPEB liability 836,877 940,850 898,021 867,422 841,590 935,528 891,794 856,436 Difference between expected and
actual experience (2,105,353) - 349,893 - (2,085,962) - - - Changes in assumptions (291,401) - 507,115 - (203,416) 21,857 - - Benefit payments, including refunds
of employee contributions (734,364) (717,143) (695,937) (678,789) (678,882) (677,824) (765,000) (827,500) Net change in total OPEB liability 620,598 (1,679,260) 682,655 1,469,005 374,536 (1,328,863) 590,423 479,061 Total OPEB liability - beginning 13,239,129 14,918,389 14,235,734 12,766,729 12,392,193 13,721,056 13,130,633 12,651,572 Total OPEB liability - ending (a) $ 13,239,129 13,859,727 $ 14,918,389 $ 14,235,734 $ 12,766,729 $ 12,392,193 $ 13,721,056 $ 13,130,633 $ Plan fiduciary net position:

Contributions - employer 740,550 $ 1,427,129 $ 1,309,367 $ 921,000 $ 1,656,882 $ 677,824 $ 1,221,000 $ 1,493,996 $ Net investment income 1,202,776 619,941 (1,395,486) 2,196,724 259,704 392,852 439,828 469,883 Benefit payments (734,364) (717,143) (695,937) (678,789) (678,882) (677,824) (765,000) (827,500) Administrative expense (9,757) (8,784) (7,070) (7,235) (3,472) (1,364) (10,170) (2,387) Net change in plan fiduciary
net position 1,321,143 1,199,205 (789,126) 2,431,700 1,234,232 391,488 885,658 1,133,992 Plan fiduciary net position
- beginning 10,954,815 9,633,672 10,422,798 7,991,098 6,756,866 6,365,378 5,479,720 4,345,728 Plan fiduciary net position
- ending (b) $ 12,154,020 $ 10,954,815 $ 9,633,672 $ 10,422,798 $ 7,991,098 $ 6,756,866 $ 6,365,378 $ 5,479,720

Plan net OPEB liability
- ending (a) - (b) $ 2,284,314 1,705,707 $ 5,284,717 $ 3,812,936 $ 4,775,631 $ 5,635,327 $ 7,355,678 $ 7,650,913 $

Plan fiduciary net position as a
percentage of the total OPEB liability 87.69% 82.75% 64.58% 73.22% 62.59% 54.53% 46.39% 41.73% Covered-employee payroll 43,414,242 $ 37,590,668 $ 38,691,777 $ 40,691,438 $ 33,077,056 $ 33,429,600 $ 33,790,437 $ 33,722,592 $ Plan net OPEB liability as percentage
of covered payroll 3.93% 6.08% 13.66% 9.37% 14.44% 16.86% 21.77% 22.69% Changes in assumptions. As of June 30, 2023 measurement, the assumption updated the PEMHCA minimum and medical trend. No changes in June 30, 2022 measurement date. As of June 30, 2021 measurement date, the assumption adds 1. Discount rate was updated based on newer capital market assumptions 2. Medical plan election at retirement assumption was updated 3. Inflation rate decreased from 2.75% to 2.50%, which decreased the discount rate, medical trend, and aggregate salary increases by

0.25% 4. Demographic assumptions updated to CalPERS 2000-2019 Experience Study 5. Mortality improvement scale was updated to Scale MP-2021. As of June 30, 2020 measurement date, the assumption removed the ACA excise tax. As of June 30, 2019 measurement date, the mortality improvement scale was updated to Scale MP-2019.

Medical plan at retirement estimated using weighted premium of recent retirees; updated based on retirements during 2015-2019. * Fiscal year 2018 was the first year of implementation. Information is required only for measurement periods for which GASB 75 is applicable.

Benefit changes . The figures shown do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2024 measurement date.

Prepared for the City of San Luis Obispo OPEB Plan
an Agent Multiple-Employer Defined Benefit OPEB Plan
As of June 30, 2025
Last 10 Years *
Schedule of Changes in the Net OPEB Liability and Related Ratios 145

Fiscal Year 2024-25 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 Actuarially
determined
contribution $ 906,000 $ 1,085,000 $ 1,055,000 $ 1,309,367 $ 921,000 $ 1,190,000 $ 1,154,000 $ 1,221,000 Contributions in
relation to the
actuarially
determined
contributions (1,975,082) (740,550) (1,427,129) (1,309,367) (921,000) (1,656,882) (677,824) (1,221,000) Contribution
deficiency (excess) $ (1,069,082) $ 344,450 $ (372,129) $ - $ (466,882) - $ $ 476,176 $ - Covered-employee
payroll $ 43,414,242 47,500,670 $ 37,590,668 $ 38,691,777 $ 40,691,438 $ 33,077,056 $ 33,429,600 $ 33,790,437 $ percentage of
covered payroll 4.16% 1.71% 2.81% 3.38% 2.26% 3.60% 3.45% 3.61% Contributions paid as of June 30, 2024 are deferred to June 30, 2025.

Valuation date
Actuarial Cost Method
Amortization Method
Amortization Period
Asset Valuation Method
Discount Rate
General Inflation
Medical Trend
Mortality
Mortality Improvement
The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2023-24 are as follows:
* Fiscal year 2018 was the first year of implementation. Information is required only for measurement periods for which GASB 75 is applicable.

Prepared for the City of San Luis Obispo Miscellaneous Plan an Agent Multiple-Employer Defined Benefit OPEB Plan
As of June 30, 2025
Last 10 Years *
Schedule of Employer OPEB Contributions
June 30, 2023
Entry Age Normal, Level % of pay
Level % of pay

6.1-year average period for FY2024/25
Investment gains and losses spread over 5-year rolling period

6.25%

2.50%
Non-Medicare - 8.50% for 2025, decreasing to an ultimate rate of 3.45% in 2076 Medicare (Non-Kaiser) - 7.5% for 2025, decreasing to an ultimate rate of 3.45% in 2076 Medicare (Kaiser) - 6.25% for 2025, decreasing to an ultimate rate of 3.45% in 2076 CalPERS 2000-2019 experience study
Post-retirement mortality projected fully generational with Scale MP-2021 146

City of San Luis Obispo, California
Notes to Required Supplementary Information
June 30, 2025
Budgetary Comparison Schedule

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

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

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

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

Excess of Expenditures Over Appropriations

1. At June 30, 2025 expenditures exceeded appropriations in the General Fund as noted below.

Department/Division Budget Variance
Police Protection:

Support Services $ 12,588
Patrol services 441,106
Fire and environmental safety:

Administration 23,344
Emergency response 248,281
Culture and Recreation:

Aquatics/Sinsheimer park facilities 66,949
Children's services 10,825
Organization Support Services:

Accounting 16,602
147

148

OTHER SUPPLEMENTARY INFORMATION

AND COMBINING AND INDIVIDUAL FUND

STATEMENTS AND SCHEDULES
149

150

Revenues Actual
Local Transaction and Use Tax $ 30,926,285
$ 30,926,285
Expenditure Allocations by Priority
Address Homelessness $ 907,987
Community Safety and Emergency Preparedness 6,625,118
Creek and Flood Protection 1,718,128
Economic Development and Business Retention 200,000
Open Space/Natural Areas Preservation and Maintenance 1,555,889 Other Services and Projects 3,342,390
Protect Financial Stability 1,178,100
Safe and Clean Public Areas 1,889,662
Street Maintenance and Transportation (incl bike and ped improvements) 9,150,627 Youth/Senior Services and Recreation Facilities 5,287,099 $ 31,855,000
Net Change in Fund Balance $ (928,715)
Fund Balance Beginning of Year 1,776,826
Fund Balance End of Year $ 848,111
City of San Luis Obispo
Local Transaction Tax Measure Funding Schedule
For the Fiscal Year Ended June 30, 2025
151

Revenues Budget Actual
Local Transaction and Use Tax $ 30,926,285 $ 30,926,285 $ 30,926,285 $ 30,926,285
Expenditures
Transfer Out for Operating Programs:

Address Homelessness $ 907,987 $ 907,987
Community Safety and Emergency Preparedness 2,708,462 2,708,462 Creek and Flood Protection 693,128 693,128
Economic Development and Business Retention 150,000 150,000 Open Space/Natural Areas Preservation and Maint. 695,889 695,889 Other Services and Projects 141,500 141,500
Protect Financial Stability 1,178,100 1,178,100
Safe and Clean Public Areas 408,551 408,551
Street Maintenance and Transportation 679,931 679,931
Youth/Senior Services and Recreation Facilities 546,115 546,115 $ 8,109,663 $ 8,109,663
Transfer Out for 2024-25 Capital Projects
Community Safety and Emergency Preparedness $ 3,916,656 $ 3,916,656 Creek and Flood Protection 1,025,000 1,025,000
Economic Development and Business Retention 50,000 50,000 Open Space/Natural Areas Preservation and Maintenance 860,000 860,000 Other Services and Projects 3,200,890 3,200,890
Safe and Clean Public Areas 1,481,111 1,481,111
Street Maintenance and Transportation (incl bike and ped improvements) 8,470,696 8,470,696 Youth/Senior Services and Recreation Facilities 4,740,984 4,740,984 $ 23,745,337 $ 23,745,337
Net Change in Fund Balance $ (928,715)
Fund Balance Beginning of Year $ 1,776,826
Fund Balance End of Year $ 848,111
City of San Luis Obispo
Local Transaction Tax Measure Funding Schedule
For the Fiscal Year Ended June 30, 2025
152

Capital Programs: Budget* Actual Encumbrances Carryover Community Safety and Emergency Preparedness
Fire Station #2 - Parking Lot Maintenance 149,646 2,988 - 146,658 Fire Station #3 & #4 Remodel Space Study and Design 264,739 27,256 105,357 132,126 Fleet Replacement - Admin 9,484 - - 9,484
Fleet Replacement - Fire 776,431 88,554 - 687,877
Fleet Replacement - Police 412,416 273,253 43,275 95,887 Fleet Replacement - Public Works 97,778 - - 97,778
IT Replacements 180,099 25,135 - 154,964
Major Facility Maintenance 255,709 211,205 - 44,503
Major Facility Replacement - Police 341,985 81,701 32,844 227,440 Parking Lot Maintenance - 1016 Walnut 6,164 - - 6,164
Police - Information Technology 1,444,119 16,894 485,222 942,003 Public Safety Center - Police Station Replacement 1,017,377 110,589 686,410 220,378 Righetti Hillside Slide Repair 1,584,745 901,312 10,853 672,580 Storm Response & Recovery 3,436,242 689,082 1,365,701 1,381,459 $ 9,976,934 $ 2,427,971 $ 2,729,661 4,819,302
Creek and Flood Protection
Creek Bank Stabilization Near Pismo and Johnson 106,073 10,000 - 96,073 Fleet Replacement - Public Works 3,989 - - 3,989
Johnson - Iris to Bishop Pipeline Replacement 1,502 1,502 - - Ruth and Iris Culvert Replacement 30,826 - - 30,826
Storm Drainage Infrastructure Replacement 2,197,379 775,450 7,935 1,413,994 $ 2,339,770 $ 786,952 $ 7,935 1,544,882
Economic Development and Business Retention
Additional Banner Arms, Bench Arm Rests, Signs 133,155 29,609 260 103,286 Annual Public Art Maintenance and Projects 244,506 244,006 500 - Downtown Renewal 255 - - 255
Downtown Zig-Zag Lighting 223,000 37,474 - 185,526
Mission Plaza Maintenance Improvements 102,553 - - 102,553 Open SLO 60,098 11,747 800 47,551
Public Art Installation 281,036 44,264 29,889 206,884
$ 1,044,603 $ 367,099 $ 31,449 646,055
Open Space/Natural Areas Preservation and Maintenance
Laguna Lake Dog Park 256,229 214,765 8,385 33,079
Laguna Lake Dredging 102,361 34,737 8,677 58,947
Open Space Acquisition 695,616 21,288 19,513 654,815
Open Space Maintenance 279,227 82,554 3,154 193,519
Pismo Street Retaining Wall 198,194 108,352 84,842 5,000 Urban Forest Maintenance 470,674 388,037 - 82,637
$ 2,002,300 $ 849,733 $ 124,570 1,027,997
City of San Luis Obispo
Local Transaction Tax Measure Funding Schedule, continued Local Revenue Measure Funded Projects
Includes Legacy Projects and projects funded by Capital Reserve 153

Capital Programs: Budget* Actual Encumbrances Carryover Other Services and Projects
CIP Project Delivery Augmentation 10 - - 10
Corp Yard Fuel Island Siding 41 - - 41
Electric Vehicle Charging Stations 462,535 21,830 40,801 399,903 Fleet Replacement - Admin 125,000 4,631 - 120,369
Fleet Replacement - Citywide 259,001 156,952 63,259 38,790 Fleet Replacement - Public Works 544,490 98 0 544,392
KVEC Tower 53,610 - - 53,610
Major Facility Maintenance 293,641 203,493 49,906 40,243 Park Major Maintenance 19,561 - - 19,561
$ 1,757,889 $ 387,004 $ 153,966 1,216,920
Safe and Clean Public Areas
Area 6 & 7 Curb Ramps 2,610 - - 2,610
Bob Jones Trail and Railroad Safety Trail Solar Lightning 49,600 - - 49,600 Curb Ramps and Sidewalks Replacements 201,482 101,743 11,810 87,930 IT Replacement 80,543 5,106 - 75,436
Mission Plaza Concept Plan Implementation 2,209,147 1,002,378 356,189 850,580 Park Major Maintenance & Repairs: Mission Plaza Railing 710,932 29,395 - 681,537 Pedestrian Crossing Improvements 501,823 - 32,509 469,314 Pedestrian Crosswalk Beacon on Ramona 13,255 - 13,255 - Railroad Safety Trail Taft to Pepper 27,150 - - 27,150
Street and Pathway Lighting 170,734 67,006 7,389 96,340 $ 3,967,276 $ 1,205,628 $ 421,151 2,340,497
Local Transaction Tax Measure Funding Schedule, continued Local Revenue Measure Funded Projects
Includes Legacy Projects and projects funded by Capital Reserve City of San Luis Obispo
154

Capital Programs: Budget* Actual Encumbrances Carryover Street Maintenance and Transportation
2022 Street Reconstruction and Resurfacing 734,309 443,479 17,649 273,181 2023 Streets Reconstruction & Resurfacing - Arterials 1,290,884 1,034,896 61,239 194,749 Active Transportation Plan Implementation 504,354 135,644 41,738 326,972 ATP - Higuera Complete Street Project 781,248 165,090 23,497 592,661 ATP - Foothill Boulevard Complete Street Project 155,085 74,368 22,628 58,090 California Taft Roundabout 514,106 36,155 100,641 377,310 Development Agreements 1,014,556 120,721 725,141 168,694 Fleet Replacement - Public Works 80,000 23,978 - 56,022 Higuera Widening at 50 Higuera 22,600 - - 22,600
Marsh and Santa Rosa Bridge Replacement 2,635 - - 2,635 Mid-Higuera Bypass 5,450,178 1,994,242 1,782,053 1,673,884 Monterey at Santa Rosa Paving and Signal Project 539,158 - - 539,158 Neighborhood Traffic Improvements 120,341 188 49,958 70,196 North Chorro Neighborhood Greenway - Phase 2 2,018,368 545,548 71,169 1,401,651 Orcutt/Tank Farm Roundabout Construction 77,002 7,615 11,195 58,192 Prado Road Bridge & Road Widening 103,472 - 93,394 10,079 Prado Road Interchange 2,396,146 35,687 12,230 2,348,229 Roadway Sealing 2022 343,253 - - 343,253
Roadway Sealing 2024 4,418,775 1,545,078 342,139 2,531,559 Sewer Replacement Chorro & Murray 80,000 - - 80,000
South Street Median Landscaping 6,862 - 3,810 3,052
Traffic Safety Report Improvements 10,139 - - 10,139
Traffic Signs & Striping Maintenance 143,521 15,972 9 127,540 Transportation Safety & Operations 254,058 56,693 16,323 181,042 $ 21,061,050 $ 6,235,353 $ 3,374,811 11,450,887
Youth/Senior Services and Recreation Facilities
Fleet Replacement - Parks and Recreation 274,625 90,011 3,295 181,319 Fleet Replacement - Public Works 194,345 194,345 - -
Golf Course Pro Shop Flood Damage Repairs 40,058 9,000 - 31,058 Laguna Lake Golf Course Maintenance 68,625 21,960 45,000 1,665 Lead by Example (Swim Center Heat Pump) 75,000 - - 75,000 Major Facility Maintenance 841,511 228,151 216,951 396,409 North Broad Street Neighborhood Park 103,867 88,470 - 15,396 Orcutt Area - Linear Park Planning and Construction 25,462 6,994 - 18,468 Parking Lot Maintenance 209,307 14,335 - 194,972
Playground Equipment Replacement 95,262 38,982 5,311 50,969 Parks and Recreation Master Plan Implementation 54,280 - - 54,280 Parks Major Maintenance 648,297 224,401 47,569 376,326
Righetti Community Park 5,075,288 90,603 1,177,843 3,806,843 $ 7,705,926 1,007,252 $ 1,495,969 5,202,706
Total Capital Expenditures $ 49,855,748 $ 13,266,991 $ 8,339,511 $ 28,249,245 *This Budget amount also includes carryover from prior years.

Includes Legacy Projects and projects funded by Capital Reserve City of San Luis Obispo
Local Transaction Tax Measure Funding Schedule, continued Local Revenue Measure Funded Projects
155

156

City of San Luis Obispo, California
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
The City maintains the following nonmajor governmental funds:

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

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

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

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

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

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

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

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

SB1 Road Repair Fund. This fund has been established to account for stable and ongoing funding for maintenance and improvements to transportation infrastructure as provided through Senate Bill 1 (2017), the Road Repair and Accountability Act.
157

City of San Luis Obispo, California
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
SB1186 CASP Certify Fund . This fund has been established as Senate Bill 1186 (2012) requires local agencies to collect an additional fee when issuing a permit for the purpose of increasing certified access specialist (CASp) services and compliance with construction-related accessibility requirements. The first priority is to spend the funds on the training and retention of CASps in order to meet the needs of the public in the jurisdiction. The funds may also be spent on activities or programs that facilitate accessibility compliance.

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

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

Opioid Settlement Fund. This fund has been established to account for money received from national lawsuits against manufacturers, distributors and other entities responsible for aiding the opioid epicemic and related.

Asset Forfeiture Available Fund. This fund has been established to account for the City's share of resolved asset forfeiture cases.

SLR PAYGO City ShareFund. This fund has been established to account for the City's share of the San Luis Ranch CFD property tax assessments that provide pay-as-you-go financing for infrastructure improvements authorized to be funded by CFD No. 2019-1.

Code Enforcement Abatement Fund. This fund has been established to account for code enforcement abatement activities and recoveries.

Police Evidence Available Fund. This fund has been established to account for the City's share of resolved criminal cases where money was seized as evidence.

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

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

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

Airport Area Impact Fee Fund. This fund was established to account for interim annexation fees collected for the specific plan and related infrastructure master plans for annexing the airport area to the City. 158

City of San Luis Obispo, California
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
Los Osos Valley Road (LOVR) Sub-Area Fee Fund . This fund was established to account for the LOVR add-on impact fee created for the expansion of capacity for the LOVR interchange at US 101 for construction, project management, and inspection. Though the project has been completed, the City has an existing reimbursement agreement with Costco Wholesale Corporation for improvements already constructed at the LOVR interchange.

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

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

Major Facility Replacement Fund. This fund accounts for the financing and replacement of major facilities for all General Fund programs of the City. Financing is primarily provided through operating transfers from the General Fund as well as from interest earnings.

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

Transportation Impact Fee Fund. This fund was established to account for construction projects related to transportation facilities and travel lanes within the City that will be financed primarily with transportation impact fees.

Infrastructure Fund . This fund was established to provide financing to infrastructure projects that have a wide community benefit. Financing is primarily provided through operating transfers from the General Fund.

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

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

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

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

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

Park Improvement Impact Fee – Citywide Fund . This fund was established to account for construction projects related to park improvements that will be financed primarily with park in-lieu fees. 159

City of San Luis Obispo, California
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
SLR Transportation Impact Fee . This fund was established to account for construction projects that will be financed primarily with transportation impact fees within the San Luis Ranch development, in accordance with its Development Agreement.

Public Safety Equipment Replacement Fund. This fund accounts for the financing and replacement of public safety equipment. Financing is primarily provided through operating transfers from the General Fund as well as from interest earnings.
160

City of San Luis Obispo, California
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
Debt Service Fund
The City has established one debt service fund to account for the payment and accumulation of resources related to governmental activities long-term debt principal and interest for the following debt issues. Budgets are prepared using the modified accrual basis of accounting consistent with U.S. generally accepted accounting principles. The following governmental activity debt issuances are serviced by this fund.

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

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

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

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

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

The Authority has entered into a lease agreement with the City under which the City is responsible for making lease payments to fund the annual debt service requirements.
161

City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
Downtown BID
Transportation
Development
Act (TDA) Tourism BID Gas Tax
Assets
Cash and investment $ 222,367 $ 10,050 $ 1,403,825 $ -
Accounts receivable - - 308,919 -
Tax receivable - - - -
Due from other funds - - - -
Accrued interest receivable - - 6,066 -
Loans receivable - - - -
Total assets $ 222,367 $ 10,050 $ 1,718,810 $ -
Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:

Accounts payable $ 51,361 $ - $ 81,693 $ -
Accrued liabilities - - 6,189 -
Due to other funds - - - -
Unearned revenue 170,630 - - -
Total liabilities 221,991 - 87,882 -
Deferred Inflows of Resources:

Unavailable revenue - - - -
Fund balance:

Restricted for:

Public safety programs - - - -
Transportation projects - 10,050 - -
Affordable housing programs - - - -
Impact fee programs - - - -
Parkland development programs - - - -
Public art programs - - - -
Tourism programs 376 - 1,630,928 -
Infrastructure improvement - - - -
Committed to:

Public safety program - - - -
Assigned to:

Contingency fund - - - -
Subsequent years expenditures - - - -
Unassigned - - - -
Total fund balance 376 10,050 1,630,928 -
Total liabilities, deferred inflows of
resources, and fund balance $ 222,367 $ 10,050 $ 1,718,810 $ - (Continued)
June 30, 2025
Special Revenue Funds
162

City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2025
Community
Development Block
Grant (CDBG)
Law Enforcement
Grants
Public Art
Contributions Avila Ranch CFD
Assets
Cash and investment $ 134,119 $ 51,334 $ 1,621,067 $ 491,881 Accounts receivable - 2,191 - 1,859
Tax receivable - - - -
Due from other funds - - - -
Accrued interest receivable 744,700 232 7,567 2,115
Loans receivable 1,112,944 - - -
Total assets $ 1,991,763 $ 53,757 $ 1,628,634 $ 495,855 Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:

Accounts payable $ - $ 2,604 $ 70,763 $ 4,259
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - 386 - -
Total liabilities - 2,990 70,763 4,259
Deferred Inflows of Resources:

Unavailable revenue 744,700 - - -
Fund balance:

Restricted for:

Public safety programs - 50,767 - -
Transportation projects - - - -
Affordable housing programs 1,247,063 - - -
Impact fee programs - - - -
Parkland development programs - - - -
Public art programs - - 1,557,871 -
Tourism programs - - - -
Infrastructure improvement - - - 491,596
Committed to:

Public safety program - - - -
Assigned to:

Contingency fund - - - -
Subsequent years expenditures - - - -
Unassigned - - - -
Total fund balance 1,247,063 50,767 1,557,871 491,596
Total liabilities, deferred inflows of
resources, and fund balance $ 1,991,763 $ 53,757 $ 1,628,634 $ 495,855 (Continued)
Special Revenue Funds
163

City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2025
SB1 Road Repair
SB1186 CASP
Certify
Affordable
Housing BEGIN
Loan Fund
Opioid Settlement
Fund
Assets
Cash and investment $ 96,741 $ 231,278 $ 22,336 $ 313,511 Accounts receivable - - - -
Tax receivable 234,117 - - -
Due from other funds - - - -
Accrued interest receivable 66 1,059 140,493 1,534
Loans receivable - - 422,995 -
Total assets $ 330,924 $ 232,337 $ 585,824 $ 315,045
Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:

Accounts payable $ - $ - $ - $ 38,817
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - 17,824 - -
Total liabilities - 17,824 - 38,817
Deferred Inflows of Resources:

Unavailable revenue - - 140,341 -
Fund balance:

Restricted for:

Public safety programs - - - 276,228
Transportation projects 330,924 214,513 - -
Affordable housing programs - - 445,483 -
Impact fee programs - - - -
Parkland development programs - - - -
Public art programs - - - -
Tourism programs - - - -
Infrastructure improvement - - - -
Committed to:

Public safety program - - - -
Assigned to:

Contingency fund - - - -
Subsequent years expenditures - - - -
Unassigned - - - -
Total fund balance 330,924 214,513 445,483 276,228
Total liabilities, deferred inflows of
resources, and fund balance $ 330,924 $ 232,337 $ 585,824 $ 315,045 Special Revenue Funds
164

City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2025
Asset Forfeiture
Available Fund
SLR PAYGO City
Share
Code Enforcement
Abatement Fund
Police Evidence
Available Fund
Assets
Cash and investment $ 60,822 $ 170,059 $ 35,837 $ 76,702 Accounts receivable - - - -
Tax receivable - - - -
Due from other funds - - - -
Accrued interest receivable 285 795 84 90
Loans receivable - - - -
Total assets $ 61,107 $ 170,854 $ 35,921 $ 76,792
Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:

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

Unavailable revenue - - - -
Fund balance:

Restricted for:

Public safety programs 61,107 170,854 35,921 76,792
Transportation projects - - - -
Affordable housing programs - - - -
Impact fee programs - - - -
Parkland development programs - - - -
Public art programs - - - -
Tourism programs - - - -
Infrastructure improvement - - - -
Committed to:

Public safety program - - - -
Assigned to:

Contingency fund - - - -
Subsequent years expenditures - - - -
Unassigned - - - -
Total fund balance 61,107 170,854 35,921 76,792
Total liabilities, deferred inflows of
resources, and fund balance $ 61,107 $ 170,854 $ 35,921 $ 76,792 (Continued)
Special Revenue Funds
165

City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2025
Parkland
In-Lieu Fee
Open Space
Protection
Airport Area
Impact Fee
LOVR Sub-Area
Fee
Assets
Cash and investment $ 606,380 $ 100,016 $ 243,602 $ 64,723 Accounts receivable - - - -
Tax receivable - - - -
Due from other funds - - - -
Accrued interest receivable 24,247 468 1,139 303
Loans receivable 227,589 - - -
Total assets $ 858,216 $ 100,484 $ 244,741 $ 65,026
Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:

Accounts payable $ 10,017 $ - $ 73,798 $ -
Accrued liabilities - - - -
Due to other funds - - - 67,478
Unearned revenue - - - -
Total liabilities 10,017 - 73,798 67,478
Deferred Inflows of Resources:

Unavailable revenue 248,959 - - -
Fund balance:

Restricted for:

Public safety programs - - - -
Transportation projects - - 170,943
Affordable housing programs - - - -
Impact fee programs - - - -
Parkland development programs 599,240 - - -
Public art programs - - - -
Tourism programs - - - -
Infrastructure improvement - - - -
Committed to:

Public safety program - - - -
Assigned to:

Contingency fund - - - -
Subsequent years expenditures - 100,484 - -
Unassigned - - - (2,452)
Total fund balance 599,240 100,484 170,943 (2,452)
Total liabilities, deferred inflows of
resources, and fund balance $ 858,216 $ 100,484 $ 244,741 $ 65,026 (Continued)
Capital Projects Funds
166

City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2025
Fleet Replacement
Info Tech
Replacement
Affordable
Housing
Transportation
Impact Fee
Assets
Cash and investment $ 2,514,421 $ 4,273,260 $ 207,526 $ 7,075,738 Accounts receivable - - - -
Tax receivable - - - -
Due from other funds - - - 67,478
Accrued interest receivable - - 2,854,992 237,094
Loans receivable - - 8,490,688 1,401,928
Total assets $ 2,514,421 $ 4,273,260 $ 11,553,206 $ 8,782,238 Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:

Accounts payable $ 25,374 $ 52,939 $ - $ 19,331
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - 170,333 - -
Total liabilities 25,374 223,272 - 19,331
Deferred Inflows of Resources:

Unavailable revenue - - 2,850,875 1,603,464
Fund balance:

Restricted for:

Public safety programs - - - -
Transportation projects - - - 7,159,443
Affordable housing programs - - 8,702,331 -
Impact fee programs - - - -
Parkland development programs - - - -
Public art programs - - - -
Tourism programs - - - -
Infrastructure improvement - - - -
Committed to:

Public safety program - - - -
Assigned to:

Contingency fund 500,000 400,000 - -
Subsequent years expenditures 1,989,047 3,649,988 - -
Unassigned - - - -
Total fund balance 2,489,047 4,049,988 8,702,331 7,159,443 Total liabilities, deferred inflows of
resources, and fund balance $ 2,514,421 $ 4,273,260 $ 11,553,206 $ 8,782,238 (Continued)
Capital Projects Funds
167

City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2025
Infrastructure
Parkland
Development
Impact FeeCitywide OASP Park MASP Park
Assets
Cash and investment $ 18,887,327 $ 1,507,357 $ 2,047,143 $ 3,438,516 Accounts receivable - - - -
Tax receivable - - - -
Due from other funds - - - -
Accrued interest receivable - 105,337 9,643 16,084
Loans receivable - 446,826 - -
Total assets $ 18,887,327 $ 2,059,520 $ 2,056,786 $ 3,454,600 Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:

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

Unavailable revenue - 545,290 - -
Fund balance:

Restricted for:

Public safety programs - - - -
Transportation projects - - - -
Affordable housing programs - - - -
Impact fee programs - 1,514,230 2,056,786 3,454,600
Parkland development programs -
Public art programs - - - -
Tourism programs - - - -
Infrastructure improvement - - - -
Committed to:

Public safety program - - - -
Assigned to:

Contingency fund - - - -
Subsequent years expenditures 18,887,327 - - -
Unassigned - - - -
Total fund balance 18,887,327 1,514,230 2,056,786 3,454,600 Total liabilities, deferred inflows of
resources, and fund balance $ 18,887,327 $ 2,059,520 $ 2,056,786 $ 3,454,600 (Continued)
Capital Projects Funds
168

City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2025
OASP
Transportation
Impact Fee Fire Impact Fee Police Impact Fee
Park Improvement
Impact FeeCitywide
Assets
Cash and investment $ 1,856,198 $ 508,926 $ 636,955 $ 2,233,232 Accounts receivable - - - -
Tax receivable - - - -
Due from other funds - - - -
Accrued interest receivable 8,602 17,284 14,007 24,419
Loans receivable - 102,569 85,280 203,154
Total assets $ 1,864,800 $ 628,779 $ 736,242 $ 2,460,805 Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:

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

Unavailable revenue - 117,523 96,415 217,099
Fund balance:

Restricted for:

Public safety programs - -
Transportation projects - - -
Affordable housing programs - - - -
Impact fee programs 1,864,800 511,256 639,827 2,243,706 Parkland development programs - - -
Public art programs - - - -
Tourism programs - - - -
Infrastructure improvement - - - -
Committed to:

Public safety program - - - -
Assigned to:

Contingency fund - - - -
Subsequent years expenditures - - - -
Unassigned - - - -
Total fund balance 1,864,800 511,256 639,827 2,243,706
Total liabilities, deferred inflows of
resources, and fund balance $ 1,864,800 $ 628,779 $ 736,242 $ 2,460,805 (Continued)
Capital Projects Funds
169

City of San Luis Obispo, California
Combining Balance Sheets
Nonmajor Governmental Funds
June 30, 2025
SLR
Transportation
Impact Fee
Public Safety
Equipment
Replacement Fund Debt Service
Total Nonmajor
Governmental
Funds
Assets
Cash and investment $ 2,594,471 $ 511,883 $ - $ 54,249,603 Accounts receivable - - - 312,969
Tax receivable - - - 234,117
Due from other funds - - - 67,478
Accrued interest receivable 12,136 - - 4,230,841
Loans receivable - - - 12,493,973
Total assets $ 2,606,607 $ 511,883 $ - $ 71,588,981
Liabilities, Deferred Inflows of
Resources and Fund Balance
Liabilities:

Accounts payable $ - $ 2,907 $ - $ 433,863
Accrued liabilities - - - 6,189
Due to other funds - - 43,089 110,567
Unearned revenue - - - 359,173
Total liabilities - 2,907 43,089 909,792
Deferred Inflows of Resources:

Unavailable revenue - - - 6,564,666
Fund balance:

Restricted for:

Public safety programs - - - 671,669
Transportation projects - - 7,885,873
Affordable housing programs - - - 10,394,877
Impact fee programs 2,606,607 - - 14,891,812
Parkland development programs - - - 599,240
Public art programs - - - 1,557,871
Tourism programs - - - 1,631,304
Infrastructure improvement - - - 491,596
Committed to:

Public safety program - 508,976 - 508,976
Assigned to:

Contingency fund - - - 900,000
Subsequent years expenditures - - - 24,626,846
Unassigned - - (43,089) (45,541)
Total fund balance 2,606,607 508,976 (43,089) 64,114,523 Total liabilities, deferred inflows of
resources, and fund balance $ 2,606,607 $ 511,883 $ - $ 71,588,981 Capital Projects Funds
170

City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
Downtown BID
Transportation
Development Act
(TDA) Tourism BID Gas Tax
Revenues:

Use of money and property - $ - $ 56,468 $ - $
Subventions and grants - 66,918 - 1,405,863
Charges for services 319,279 - 2,248,296 -
Property tax - - - -
Other revenues - - - -
Total revenues 319,279 66,918 2,304,764 1,405,863
Expenditures:

Current:

Public safety - - - -
Transportation - - - -
Community development 185,341 - 2,152,578 -
Debt service:

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

General Government - - - -
Transportation - - - -
Leisure, cultural and social services - - - -
Community development - - - -
Total expenditures 185,341 - 2,152,578 -
Excess (deficiency) of revenues over
(under) expenditures 133,938 66,918 152,186 1,405,863
Other financing sources (uses):

Transfers in - - - -
Transfers out - (90,000) (44,914) (1,405,863)
Total other financing
sources (uses) - (90,000) (44,914) (1,405,863)
Net change in fund balance 133,938 (23,082) 107,272 -
Fund balance, beginning of year (133,562) 33,132 1,523,656 - Prior year restatements - - - -
Fund balance (deficit),
beginning of year, as restated (133,562) 33,132 1,523,656 - Fund balance (deficit),
end of year $ 376 $ 10,050 $ 1,630,928 $ -
(Continued)
Special Revenue Funds
171

City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
Community
Development Block
Grant (CDBG)
Law Enforcement
Grants
Public Art
Contributions Avila Ranch CFD
Revenues:

Use of money and property - $ 2,247 $ 76,041 $ 21,063 $ Subventions and grants 33,368 151,957 - -
Charges for services - 288 50,486 -
Property tax - - - 539,453
Other revenues - 1,520 - -
Total revenues 33,368 156,012 126,527 560,516
Expenditures:

Current:

Public safety - 156,008 - -
Transportation - - - -
Community development - - - 50,435
Debt service:

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

General Government - - - -
Transportation - - - -
Leisure, cultural and social services - - 303,142 -
Community development - - - -
Total expenditures - 156,008 303,142 50,435
Excess (deficiency) of revenues over
(under) expenditures 33,368 4 (176,615) 510,081
Other financing sources (uses):

Transfers in - - 312,848 -
Transfers out (33,367) - (104,950) (386,517)
Total other financing
sources (uses) (33,367) - 207,898 (386,517)
Net change in fund balance 1 4 31,283 123,564
Fund balance, beginning of year 1,247,062 50,763 1,526,588 368,032 Prior year restatements - - - -
Fund balance (deficit),
beginning of year, as restated 1,247,062 50,763 1,526,588 368,032 Fund balance (deficit),
end of year $ 1,247,063 $ 50,767 $ 1,557,871 $ 491,596
(Continued)
Special Revenue Funds
172

City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
SB1 Road Repair
SB1186 ASP
Certify
Affordable
Housing BEGIN
Loan Fund
Avila Ranch DPA
Fund
Revenues:

Use of money and property 3,107 $ 10,283 $ 18,058 $ - $ Subventions and grants 1,328,542 - - -
Charges for services - 28,247 - -
Property tax - - - -
Other revenues - - - 40,000
Total revenues 1,331,649 38,530 18,058 40,000
Expenditures:

Current:

Public safety - - - -
Transportation - - - -
Community development - 500 - 40,000
Debt service:

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

General Government - - - -
Transportation 1,283,811 - - -
Leisure, cultural and social services - - - -
Community development - - - -
Total expenditures 1,283,811 500 - 40,000
Excess (deficiency) of revenues over
(under) expenditures 47,838 38,030 18,058 -
Other financing sources (uses):

Transfers in - - - -
Transfers out - - - -
Total other financing
sources (uses) - - - -
Net change in fund balance 47,838 38,030 18,058 -
Fund balance, beginning of year 283,086 176,483 427,425 - Prior year restatements - - - -
Fund balance (deficit),
beginning of year, as restated 283,086 176,483 427,425 - Fund balance (deficit),
end of year $ 330,924 $ 214,513 $ 445,483 $ -
(Continued)
Special Revenue Funds
173

City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
Opioid
Settlement
Fund
Asset
Forfeiture
Available
Fund

SLR PAYGO
City Share
Code
Enforcement
Abatement
Fund
Police
Evidence
Available
Fund
Revenues:

Use of money and property 9,190 $ 8,667 $ 3,231 $ 270 $ 289 $ Subventions and grants - - - - -
Charges for services - - - - -
Property tax - - - - -
Other revenues 323,882 - 167,623 35,651 -
Total revenues 333,072 8,667 170,854 35,921 289
Expenditures:

Current:

Public safety - - - - -
Transportation - - - - -
Community development 56,844 - - - -
Debt service:

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

General Government - - - - -
Transportation - - - - -
Leisure, cultural and social services - - - - -
Community development - - - - -
Total expenditures 56,844 - - - -
Excess (deficiency) of revenues over
(under) expenditures 276,228 8,667 170,854 35,921 289
Other financing sources (uses):

Transfers in - - - - -
Transfers out - - - - -
Total other financing
sources (uses) - - - - -
Net change in fund balance 276,228 8,667 170,854 35,921 289 Fund balance, beginning of year - - - - -
Prior year restatements 52,440 - - 76,503 -
Fund balance (deficit),
beginning of year, as restated 52,440 - - 76,503 -
Fund balance (deficit),
end of year $ 276,228 $ 61,107 $ 170,854 $ 35,921 $ 76,792 (Continued)
Special Revenue Funds
174

City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
Parkland
In-Lieu Fee
Open Space
Protection
Airport Area
Impact Fee
LOVR Sub-Area
Fee
Revenues:

Use of money and property 60,969 $ 3,086 $ 13,592 $ 15,027 $ Subventions and grants - - - -
Charges for services 56,134 - - (67,478)
Property tax - - - -
Other revenues - 83,700 - -
Total revenues 117,103 86,786 13,592 (52,451)
Expenditures:

Current:

Public safety - - - -
Transportation - - - 566,788
Community development - - - -
Debt service:

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

General Government - - - -
Transportation - - 234,242 -
Leisure, cultural and social services 1,759,460 - - -
Community development - - - -
Total expenditures 1,759,460 - 234,242 566,788
Excess (deficiency) of revenues over
(under) expenditures (1,642,357) 86,786 (220,650) (619,239) Other financing sources (uses):

Transfers in - - - -
Transfers out - - - -
Total other financing
sources (uses) - - - -
Net change in fund balance (1,642,357) 86,786 (220,650) (619,239) Fund balance, beginning of year 2,241,597 13,698 391,593 616,787 Prior year restatements - - - -
Fund balance (deficit),
beginning of year, as restated 2,241,597 13,698 391,593 616,787 Fund balance (deficit),
end of year $ 599,240 $ 100,484 $ 170,943 $ (2,452)
(Continued)
Capital Projects Funds
175

City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
Fleet Replacement
Info Tech
Replacement
Affordable
Housing
Transportation
Impact Fee
Revenues:

Use of money and property - $ - $ 79,429 $ 301,828 $
Subventions and grants 15,000 392,317 (600) -
Charges for services - 137,638 219,117 1,496,794
Property tax - - - -
Other revenues 98,173 8,102 - -
Total revenues 113,173 538,057 297,946 1,798,622
Expenditures:

Current:

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

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

General Government - 615,364 - -
Transportation - - - 459,342
Leisure, cultural and social services - - - -
Community development 990,520 - - -
Total expenditures 990,520 615,364 - 459,342
Excess (deficiency) of revenues over
(under) expenditures (877,347) (77,307) 297,946 1,339,280 Other financing sources (uses):

Transfers in 783,000 1,446,656 - -
Transfers out - (302,000) (207,000) (280,000)
Total other financing
sources (uses) 783,000 1,144,656 (207,000) (280,000)
Net change in fund balance (94,347) 1,067,349 90,946 1,059,280 Fund balance, beginning of year 2,583,394 2,982,639 8,540,730 6,100,163 Prior year restatements - - 70,655 -
Fund balance (deficit),
beginning of year, as restated 2,583,394 2,982,639 8,611,385 6,100,163 Fund balance (deficit),
end of year $ 2,489,047 $ 4,049,988 $ 8,702,331 $ 7,159,443 (Continued)
Capital Projects Funds
176

City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
Infrastructure
Parkland
Development
Impact FeeCitywide OASP Park MASP Park
Revenues:

Use of money and property - $ 67,166 $ 102,398 $ 162,040 $ Subventions and grants 105,106 - - -
Charges for services - 200,304 84,355 -
Property tax - - - -
Other revenues - - - -
Total revenues 105,106 267,470 186,753 162,040
Expenditures:

Current:

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

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

General Government - - - -
Transportation 28 - - -
Leisure, cultural and social services - - 245,981 -
Community development - - - -
Total expenditures 28 - 245,981 -
Excess (deficiency) of revenues over
(under) expenditures 105,078 267,470 (59,228) 162,040
Other financing sources (uses):

Transfers in 5,671,972 - - -
Transfers out (105,106) - - -
Total other financing
sources (uses) 5,566,866 - - -
Net change in fund balance 5,671,944 267,470 (59,228) 162,040 Fund balance, beginning of year 13,215,383 1,246,760 2,116,014 3,292,560 Prior year restatements - - - -
Fund balance (deficit),
beginning of year, as restated 13,215,383 1,246,760 2,116,014 3,292,560 Fund balance (deficit),
end of year $ 18,887,327 $ 1,514,230 $ 2,056,786 $ 3,454,600 (Continued)
Capital Projects Funds
177

City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
OASP
Transportation
Impact Fee Fire Impact Fee Police Impact Fee
Park Improvement
Impact FeeCitywide
Revenues:

Use of money and property 82,225 $ 22,402 $ 26,296 $ 106,955 $ Subventions and grants - - - -
Charges for services 309,330 90,290 165,112 133,286
Property tax - - - -
Other revenues - - - -
Total revenues 391,555 112,692 191,408 240,241
Expenditures:

Current:

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

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

General Government - - - -
Transportation - - - -
Leisure, cultural and social services - - - 173,120
Community development - - - -
Total expenditures - - - 173,120
Excess (deficiency) of revenues over
(under) expenditures 391,555 112,692 191,408 67,121
Other financing sources (uses):

Transfers in - - - -
Transfers out - - - -
Total other financing
sources (uses) - - - -
Net change in fund balance 391,555 112,692 191,408 67,121 Fund balance, beginning of year 1,473,245 398,564 448,419 2,176,585 Prior year restatements - - - -
Fund balance (deficit),
beginning of year, as restated 1,473,245 398,564 448,419 2,176,585 Fund balance (deficit),
end of year $ 1,864,800 $ 511,256 $ 639,827 $ 2,243,706 (Continued)
Capital Projects Funds
178

City of San Luis Obispo, California
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
SLR
Transportation
Impact Fee
Public Safety
Equipment
Replacement Fund Debt Service
Total Nonmajor
Governmental
Funds
Revenues:

Use of money and property 119,282 $ - $ 2 $ 1,371,611 $ Subventions and grants - - - 3,498,471
Charges for services 329,502 - - 5,800,980
Property tax - - - 539,453
Other revenues - - - 758,651
Total revenues 448,784 - 2 11,969,166
Expenditures:

Current:

Public safety - 307,329 - 463,337
Transportation - - - 566,788
Community development - - - 2,485,698
Debt service:

Principal - - 1,098,975 1,098,975
Interest and fiscal charges - - 634,814 634,814
Capital:

General Government - - - 615,364
Transportation - - - 1,977,423
Leisure, cultural and social services - - - 2,481,703
Community development - - - 990,520
Total expenditures - 307,329 1,733,789 11,314,622
Excess (deficiency) of revenues over
(under) expenditures 448,784 (307,329) (1,733,787) 654,544 Other financing sources (uses):

Transfers in - 387,334 1,757,889 10,359,699
Transfers out - - (2,959,717) -
Total other financing
sources (uses) - 387,334 1,757,889 7,399,982
Net change in fund balance 448,784 80,005 24,102 8,054,526 Fund balance, beginning of year 2,157,823 428,971 (158,557) 55,769,033 Prior year restatements - - 91,366 290,964
Fund balance (deficit),
beginning of year, as restated 2,157,823 428,971 (67,191) 56,059,997 Fund balance (deficit),
end of year $ 2,606,607 $ 508,976 $ (43,089) $ 64,114,523 Capital Projects Funds
179

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

Charges for services
Assessments $ 280,900 $ 280,900 $ 319,279 $ 38,379
Total Revenues 280,900 280,900 319,279 38,379
Expenditures:

Current
Community development 280,900 280,900 185,341 95,559
Total Expenditures 280,900 280,900 185,341 95,559
Excess of Revenues Over Expenditures - - 133,938 133,938 Net Change in Fund Balance - - 133,938 133,938
Fund Balance, Beginning of Year (133,562) (133,562) (133,562) - Fund Balance, End of Year $ (133,562) $ (133,562) $ 376 $ 133,938 City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2025
Downtown Business Improvement District Fund
Budget
180

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Subventions and grants $ 90,000 $ 90,000 $ 66,918 $ (23,082) Total Revenues 90,000 90,000 66,918 (23,082)
Excess of Revenues Over Expenditures 90,000 90,000 66,918 (23,082) Other Financing Uses:

Operating transfers out (90,000) (90,000) (90,000) -
Net Change in Fund Balance - - (23,082) (23,082)
Fund Balance, Beginning of Year 33,132 33,132 33,132 -
Fund Balance, End of Year $ 33,132 $ 33,132 $ 10,050 $ (23,082) Transportation Development Act (TDA)
Budget
181

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Use of money and property $ - $ - $ 56,468 $ 56,468
Assessments 2,117,251 2,117,251 2,248,296 131,045
Total Revenues 2,117,251 2,117,251 2,304,764 187,513
Expenditures:

Current
Community development 2,103,944 2,223,194 2,152,578 70,616 Total Expenditures 2,103,944 2,223,194 2,152,578 70,616 Excess of Revenues Over (Under) Expenditures 13,307 (105,943) 152,186 258,129 Other Financing Uses:

Operating transfers out (43,545) (42,345) (44,914) (2,569) Net Change in Fund Balance (30,238) (148,288) 107,272 255,560 Fund Balance, Beginning of Year 1,523,656 1,523,656 1,523,656 - Fund Balance, End of Year $ 1,493,418 $ 1,375,368 $ 1,630,928 $ 255,560 Tourism Business Improvement District Fund
Budget
182

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Subventions and grants $ 1,419,353 $ 1,419,353 $ 1,405,863 $ (13,490) Total Revenues 1,419,353 1,419,353 1,405,863 (13,490)
Excess of Revenues Over Expenditures 1,419,353 1,419,353 1,405,863 (13,490) Other Financing Uses:

Operating transfers out (1,419,353) (1,419,353) (1,405,863) 13,490 Net Change in Fund Balance - - - -
Fund Balance, Beginning of Year - - - -
Fund Balance, End of Year $ - $ - $ - $ -
Gas Tax
Budget
183

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Subventions and grants $ - $ - $ 33,368 $ 33,368
Total Revenues - - 33,368 33,368
Excess of Revenues Over (Under) Expenditures - - 33,368 33,368 Other Financing Uses:

Operating transfers out - - (33,367) (33,367)
Net Change in Fund Balance - - 1 1
Fund Balance, Beginning of Year, as restated 1,247,062 1,247,062 1,247,062 - Fund Balance, End of Year $ 1,247,062 $ 1,247,062 $ 1,247,063 $ 1 Community Development Block Grant (CDBG) Fund
Budget
184

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Subventions and grants $ 129,250 $ 129,250 $ 151,957 $ 22,707 Charges for services 2,142 2,142 288 (1,854)
Other revenues 1,520 1,520
Total Revenues 131,392 131,392 156,012 24,620
Expenditures:

Public Safety - 16,250 156,008 (139,758)
Total Expenditures - 16,250 156,008 (139,758)
Excess of Revenues Over (Under) Expenditures 131,392 115,142 4 (115,138) Net Change in Fund Balance 131,392 115,142 4 (115,138)
Fund Balance, Beginning of Year 50,763 50,763 50,763 -
Fund Balance, End of Year $ 182,155 $ 165,905 $ 50,767 $ (115,138) Budget
Law Enforcement Grants Fund
185

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Use of money and property $ - $ - $ 76,041 $ 76,041
Other revenues 15,000 15,000 50,486 35,486
Total Revenues 15,000 15,000 126,527 111,527
Expenditures:

Capital Projects 116,131 742,212 303,142 439,070
Total Expenditures 116,131 742,212 303,142 439,070
Excess of Revenues Over (Under) Expenditures (101,131) (727,212) (176,615) 550,597 Other Financing Uses:

Operating transfers in - 300,000 312,848 12,848
Operating transfers out - (104,950) (104,950) -
Total Other Financing Uses - 195,050 207,898 12,848
Net Change in Fund Balance (101,131) (832,162) 31,283 563,445 Fund Balance, Beginning of Year 1,526,588 1,526,588 1,526,588 - Fund Balance, End of Year $ 1,425,457 $ 694,426 $ 1,557,871 $ 563,445 Budget
Public Art Contributions Fund
186

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Use of money and property $ - $ - $ 21,063 $ 21,063
Property tax - - 539,453 539,453
Other revenues 523,648 523,648 - (523,648)
Total Revenues 523,648 523,648 560,516 36,868
Expenditures:

Community Development 199,000 244,884 50,435 194,449
Total Expenditures 199,000 244,884 50,435 194,449
Excess of Revenues Over (Under) Expenditures 324,648 278,764 510,081 (157,581) Other Financing Uses:

Operating transfers out (110,814) 110,814 (386,517) (497,331) Net Change in Fund Balance 213,834 389,578 123,564 (654,912) Fund Balance, Beginning of Year 368,032 368,032 368,032 - Fund Balance, End of Year $ 581,866 $ 757,610 $ 491,596 $ (654,912) Budget
Avila Ranch CFD
187

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Use of money and property $ - $ - $ 3,107 $ 3,107
Subventions and grants 1,092,000 1,092,000 1,328,542 236,542 Total Revenues 1,092,000 1,092,000 1,331,649 239,649
Expenditures:

Capital Projects 1,311,791 1,328,176 1,283,811 44,365
Total Expenditures 1,311,791 1,328,176 1,283,811 44,365 Excess of Revenues Over (Under) Expenditures (219,791) (236,176) 47,838 284,014 Net Change in Fund Balance (219,791) (236,176) 47,838 284,014 Fund Balance, Beginning of Year 283,086 283,086 283,086 - Fund Balance, End of Year $ 63,295 $ 46,910 $ 330,924 $ 284,014 Budget
SB1 Road Repair Fund
188

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Use of money and property $ - $ - $ 10,283 $ 10,283
Charges for services - - 28,247 28,247
Total Revenues - - 38,530 38,530
Expenditures:

Community Development 25,000 25,000 500 24,500
Total Expenditures 25,000 25,000 500 24,500
Excess of Revenues Over (Under) Expenditures (25,000) (25,000) 38,030 63,030 Net Change in Fund Balance (25,000) (25,000) 38,030 63,030 Fund Balance, Beginning of Year 176,483 176,483 176,483 - Fund Balance, End of Year $ 151,483 $ 151,483 $ 214,513 $ 63,030 Budget
SB1186 CASP Certify
189

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Use of money and property $ - $ - $ 18,058 $ 18,058
Total Revenues - - 18,058 18,058
Excess of Revenues Over (Under) Expenditures - - 18,058 18,058 Net Change in Fund Balance - - 18,058 18,058
Fund Balance, Beginning of Year 427,425 427,425 427,425 - Fund Balance, End of Year $ 427,425 $ 427,425 $ 445,483 $ 18,058 Affordable Housing BEGIN Loan Fund
Budget
190

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Other revenues - - 40,000 40,000
Total Revenues - - 40,000 40,000
Expenditures:

Community Development - - 40,000 (40,000)
Total Expenditures - - 40,000 (40,000)
Excess of Revenues Over (Under) Expenditures - - - -
Net Change in Fund Balance - - - -
Fund Balance, Beginning of Year - - - -
Fund Balance, End of Year $ - $ - $ - $ -
Avila Ranch DPA Fund
Budget
191

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Use of money and property $ - $ - $ 9,190 $ 9,190
Other revenues - - 323,882 323,882
Total Revenues - - 333,072 333,072
Expenditures:

Community Development - - 56,844 (56,844)
Total Expenditures - - 56,844 (56,844)
Excess of Revenues Over (Under) Expenditures - - 276,228 276,228 Net Change in Fund Balance - - 276,228 276,228
Fund Balance, Beginning of Year - - - -
Fund Balance, End of Year $ - $ - $ 276,228 $ 276,228
Opioid Settlement Fund
Budget
192

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Use of money and property $ - $ - $ 8,667 $ 8,667
Subventions and grants - - - -
Charges for services - - - -
Other revenues - - - -
Total Revenues - - 8,667 8,667
Excess of Revenues Over (Under) Expenditures - - 8,667 8,667 Net Change in Fund Balance - - 8,667 8,667
Fund Balance, Beginning of Year 52,440 52,440 52,440 -
Fund Balance, End of Year $ 52,440 $ 52,440 $ 61,107 $ 8,667 Budget
Asset Forfeiture Available Fund
193

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Use of money and property $ - $ - $ 3,231 $ 3,231
Subventions and grants - - - -
Charges for services - - - -
Other revenues - - 167,623 167,623
Total Revenues - - 170,854 170,854
Excess of Revenues Over (Under) Expenditures - - 170,854 170,854 Net Change in Fund Balance - - 170,854 170,854
Fund Balance, Beginning of Year - - - -
Fund Balance, End of Year $ - $ - $ 170,854 $ 170,854
SLR PAYGO City Share
Budget
194

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Use of money and property $ - $ - $ 270 $ 270
Subventions and grants - - - -
Charges for services - - - -
Other revenues - - 35,651 35,651
Total Revenues - - 35,921 35,921
Excess of Revenues Over (Under) Expenditures - - 35,921 35,921 Net Change in Fund Balance - - 35,921 35,921
Fund Balance, Beginning of Year - - - -
Fund Balance, End of Year $ - $ - $ 35,921 $ 35,921
Code Enforcement Abatement Fund
Budget
195

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Use of money and property $ - $ - $ 289 $ 289
Total Revenues - - 289 289
Excess of Revenues Over (Under) Expenditures - - 289 289 Net Change in Fund Balance - - 289 289
Fund Balance, Beginning of Year - - - -
Fund Balance, End of Year $ - $ - $ 289 $ 289
Police Evidence Available Fund
Budget
196

City of San Luis Obispo, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Use of money and property $ - $ - $ 2 $ 2
Total Revenues - - 2 2
Expenditures:

Principal 1,144,989 1,144,989 1,098,975 46,014
Interest and fiscal charges 612,900 612,900 634,814 (21,914) Total Expenditures 1,757,889 1,757,889 1,733,789 24,100 Excess of Revenues Over (Under) Expenditures (1,757,889) (1,757,889) (1,733,787) 24,102 Other Financing Uses:

Operating transfers in 1,757,889 1,757,889 1,757,889 -
Operating transfers out - - - -
Total other Financing Uses: 1,757,889 1,757,889 1,757,889 - Net Change in Fund Balance - - 24,102 24,102
Fund Balance, Beginning of Year (67,191) (67,191) (67,191) - Fund Balance, End of Year $ (67,191) $ (67,191) $ (43,089) $ 24,102 Budget
Debt Service Fund
197

198

City of San Luis Obispo, California
Custodial Funds
For the Fiscal Year Ended June 30, 2025
The City of San Luis Obispo has established the following agency funds, which are used to account for funds held by the City as an agent for private donations and programs operated jointly with other local agencies:

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

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

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

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

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

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

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

Avila Ranch Private Reimbursement Agreement Fund . This fund has been established to account for activities related to reimbursements between private property owners/developers. The City facilitates payment between the private parties.

Asset Forfeiture Pending Fund . This fund has been established to account for cash related to unresolved asset forfeiture cases.

SWAT Task Force Fund . This fund has been established to account for activities related to the Regional SWAT Task Force. The City provides accounting services for the Task Force.

Police Evidence Pending Fund . This fund has been established to account for cash seized as evidence while awaiting criminal case resolution.
199

City of San Luis Obispo
Combining Statement of Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2025
Hazardous General Boysen Ranch
Whale Jack Materials Task Agency Conservation
Rock Fund House Fund Force Fund Fund Easement
ASSETS
Cash and investments $ 6,284,413 $ 21,618 $ 171,286 $ 16,619,026 $ 425,769 Receivables:

Accounts 409,558 - - - -
Interest 29,615 101 805 - 1,992
Capital assets 687,561 - - - -
Total assets 7,411,147 21,719 172,091 16,619,026 427,761

LIABILITIES
Accounts payable 94,014 - - 141,162 -
Compensated absence 48,661 - - - -
Accrued Salaries 18,397 - - - -
Other liabilities 2,000 - - - -
Total liabilities 163,072 - - 141,162 -

NET POSITION
Restricted for
Individuals, organizations, and
other governments 7,248,075 21,719 172,091 16,477,864 427,761 Total net position $ 7,248,075 $ 21,719 $ 172,091 $ 16,477,864 $ 427,761 (Continued)
200

City of San Luis Obispo
Combining Statement of Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2025
PEG City of PEG San Luis Ranch Avila Ranch Private
San Luis Obispo SLCUSD CFD Reimbursement Agreement
ASSETS
Cash and investments $ 181,366 $ 82,644 $ 13,469,834 $ 479,549 Receivables:

Accounts 15,758 4 11,637 -
Interest 984 232 4,651 -
Capital assets - - - -
Total assets 198,108 82,880 13,486,122 479,549

LIABILITIES
Accounts payable 8,713 - 945 -
Compensated absence - - - -
Accrued Salaries - - - -
Other liabilities - 8,713 - -
Total liabilities 8,713 8,713 945 -

NET POSITION
Restricted for
Individuals, organizations, and other
governments 189,395 74,167 13,485,177 479,549
Total net position $ 189,395 $ 74,167 $ 13,485,177 $ 479,549 (Continued)
201

City of San Luis Obispo
Combining Statement of Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2025
Total
Asset SWAT Task Police Evidence Custodial
Forfeiture Pending Force Fund Pending Fund Funds
ASSETS
Cash and investments $ 18,827 $ 30,583 $ 72,606 $ 37,857,521 Receivables:

Accounts - - - 436,957
Interest 90 144 86 38,700
Capital assets - - - 687,561
Total assets 18,917 30,727 72,692 39,020,739

LIABILITIES
Accounts payable - - - 244,834
Compensated absence - - - 48,661
Accrued Salaries - - - 18,397
Other liabilities - - - 10,713
Total liabilities - - - 322,605

NET POSITION
Restricted for
Individuals, organizations, and other
governments 18,917 30,727 72,692 38,698,134
Total net position $ 18,917 $ 30,727 $ 72,692 $ 38,698,134 202

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

Charges for services $ 1,310,027 $ - $ - $ - $ -
Other revenue 1,505,202 5 69,745 896,926 -
Use of money and property 314,858 1,019 9,920 - 20,157
Total additions 3,130,087 1,024 79,665 896,926 20,157
DEDUCTIONS:

Administration expenses 252,099 - - -
Contractual services 1,695,310 - - 5,023
Materials and supplies 86,748 - 98,249 - -
Use of developer deposits - - - 742,929 -
Depreciation 63,283 - - - -
Total deductions 2,097,440 - 98,249 742,929 5,023
Net increase (decrease) in
fiduciary net position 1,032,647 1,024 (18,584) 153,997 15,134 NET POSITION:

Beginning of year 6,215,428 20,695 190,675 16,533,673 412,627 Prior Period Adjustment - - - (209,806) -
Beginning of year, as restated 6,215,428 20,695 190,675 16,323,867 412,627 End of year $ 7,248,075 $ 21,719 $ 172,091 $ 16,477,864 $ 427,761 (Continued)
City of San Luis Obispo
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the year ended June 30, 2025
203

City of San Luis Obispo
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the year ended June 30, 2025
PEG City of PEG San Luis Ranch Avila Ranch Private
San Luis Obispo SLCUSD CFD Reimbursement Agreement
ADDITIONS:

Charges for services $ - $ - $ - $ -
Other revenue 33,003 33,003 1,345,180 479,549
Use of money and property 8,729 2,223 566,744 -
Total additions 41,732 35,226 1,911,924 479,549
DEDUCTIONS:

Administration expenses - - 1,354,427 -
Contractual services - - - -
Materials and supplies - - - -
Use of developer deposits - - - -
Depreciation - - - -
Total deductions - - 1,354,427 -
Net increase (decrease) in fiduciary net
position 41,732 35,226 557,497 479,549
NET POSITION:

Beginning of year, 147,663 38,941 12,927,680 -
Prior Period Adjustment - - - -
Beginning of year, as restated 147,663 38,941 12,927,680 - End of year $ 189,395 $ 74,167 $ 13,485,177 $ 479,549
(Continued)
204

City of San Luis Obispo
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the year ended June 30, 2025
Total
Asset SWAT Task Police Evidence Custodial
Forfeiture Pending Force Fund Pending Fund Funds
ADDITIONS:

Charges for services $ - $ - $ - $ 1,310,027
Other revenue 23,673 30,625 - 4,416,911
Use of money and property 440 689 274 925,053
Total additions 24,113 31,314 274 6,651,991
DEDUCTIONS:

Administration expenses - 587 - 1,607,113
Contractual services 13,640 - - 1,713,973
Materials and supplies - - - 184,997
Use of developer deposits - - - 742,929
Depreciation - - - 63,283
Total deductions 13,640 587 - 4,312,295
Net increase (decrease) in fiduciary net
position 10,473 30,727 274 2,339,696
NET POSITION:

Beginning of year, - - - 36,487,382
Prior Period Adjustment 8,444 - 72,418 (128,944)
Beginning of year, as restated 8,444 - 72,418 36,358,438 End of year $ 18,917 $ 30,727 $ 72,692 $ 38,698,134
205

206

STATISTICAL SECTION (UNAUDITED)
207

208

City of San Luis Obispo, California
Statistical Section Overview
For the Fiscal Year Ended June 30, 2025
This part of the City of San Luis Obispo’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’s overall financial health.

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

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

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

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

Operating Information – Schedules 23-26 . These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the government provides 209

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Governmental activities:

Net investment in capital assets $ 163,449,992 $ 165,100,426 $ 171,472,251 $ 174,431,254 $ 177,335,648 $ 184,387,289 $ 193,984,593 $ 205,324,234 $ 228,447,288 $ 241,392,407 Restricted 2,762,387 2,268,499 421,954 20,458,677 29,901,136 35,603,121 41,770,187 43,626,006 35,753,131 38,939,635 Unrestricted (49,031,893) (41,496,841) (49,909,657) (72,041,172) (73,806,116) (62,369,688) (57,458,111) (29,876,424) (14,403,912) 3,447,348 Total governmental activities net position $ 117,180,486 $ 125,872,084 $ 121,984,548 $ 122,848,759 $ 133,430,668 $ 157,620,722 $ 178,296,669 $ 219,073,816 $ 249,796,507 $ 283,779,390 Business-type activities:

Net investment in capital assets $ 128,390,611 $ 131,149,516 $ 136,694,402 $ 139,659,544 $ 149,617,018 $ 160,750,886 $ 157,728,990 $ 170,471,787 $ 183,458,877 $ 200,340,066 Restricted 2,278,392 2,276,526 1,558,795 500,645 4,037,611 2,493,859 2,684,781 1,653,225 10,976,119 6,470,313 Unrestricted 49,495,220 53,421,102 50,866,147 57,379,689 53,983,005 53,159,080 79,970,715 88,160,609 81,095,190 94,710,986 Total business-type activities net position $ 180,164,223 $ 186,847,144 $ 189,119,344 $ 197,539,878 $ 207,637,634 $ 216,403,825 $ 240,384,486 $ 260,285,621 $ 275,530,186 $ 301,521,365 Primary government (City wide totals):

Net investment in capital assets $ 291,840,603 $ 296,249,942 $ 308,166,653 $ 314,090,798 $ 326,952,666 $ 345,138,175 $ 351,713,583 $ 375,796,021 $ 411,906,165 $ 441,732,473 Restricted 5,040,779 4,545,025 1,980,749 20,959,322 33,938,747 38,096,980 44,454,968 45,279,231 46,729,250 45,409,948 Unrestricted 463,327 11,924,261 956,490 (14,661,483) (19,823,111) (9,210,608) 22,512,604 58,284,185 66,691,278 98,158,334 Total primary government net position $ 297,344,709 $ 312,719,228 $ 311,103,892 $ 320,388,637 $ 341,068,302 $ 374,024,547 $ 418,681,155 $ 479,359,437 $ 525,326,693 $ 585,300,755 Schedule 1
City of San Luis Obispo, California
Net Assets by Component
Last Ten Fiscal Years
(Accrual basis of accounting)
$-
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
Governmental vs Business-type Net Position
Total business-type activities net position
Total governmental activities net position
$(100,000,000)
$-
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
Net Position by Component
Net investment in capital assets
Restricted
Unrestricted
210

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Expenses:

Governmental activities:

Public safety $ 29,318,821 $ 31,806,692 $ 42,097,557 $ 34,320,108 $ 34,670,383 $ 35,226,779 $ 41,132,177 $ 26,828,837 $ 43,148,712 $ 47,552,699 Transportation 8,792,028 9,668,840 9,229,042 7,546,278 7,416,335 8,137,479 10,395,516 10,052,069 17,740,407 12,159,073 Culture and recreation 9,808,545 9,824,262 11,125,792 9,469,520 10,063,304 11,122,003 12,407,720 11,552,865 12,871,004 13,669,496 Community development 12,900,275 14,656,604 13,457,993 12,573,953 11,882,018 11,918,019 15,506,092 14,768,484 19,527,448 16,190,977 General Government - - - 22,429,785 22,058,724 17,276,491 20,982,321 25,628,303 22,777,642 20,980,453 Capital Outlay - - - - - - - - - 3,429,399
Interest on long-term debt 1,351,468 1,170,984 1,488,183 702,885 839,661 731,045 699,284 681,023 615,966 569,642 Total governmental activities expenses 62,171,137 67,127,382 77,398,567 87,042,529 86,930,425 84,411,816 101,123,110 89,511,581 116,681,179 114,551,739 Business-type activities:

Water 18,136,120 19,069,967 19,523,736 20,986,430 22,914,013 21,469,967 20,892,863 22,152,285 25,666,319 28,092,545 Sewer 10,842,451 11,683,262 14,158,612 13,967,717 13,100,905 15,064,551 12,576,058 13,417,264 22,831,476 16,792,057 Parking 3,900,052 3,791,493 4,098,840 4,088,681 4,145,364 4,057,242 4,517,125 5,063,501 8,962,908 8,617,493 Transit 4,088,423 4,076,871 4,355,103 4,320,976 4,384,344 4,023,536 3,851,264 4,482,763 5,352,380 6,358,316 Total business-type activities expenses 36,967,046 38,621,593 42,136,291 43,363,804 44,544,626 44,615,296 41,837,310 45,115,813 62,813,083 59,860,411 Total primary government expenses $ 99,138,183 $ 105,748,975 $ 119,534,858 $ 130,406,333 $ 131,475,051 $ 129,027,112 $ 142,960,420 $ 134,627,394 $ 179,494,262 $ 174,412,150 Program Revenues:

Governmental activities:

Charges for services:

Public safety $ 1,673,800 $ 1,771,383 $ 1,881,725 $ 1,633,223 $ 3,045,294 $ 3,991,193 $ 3,197,692 $ 2,847,705 $ 3,378,182 $ 4,272,202 Transportation 1,691,757 1,793,010 1,669,563 2,399,692 531,424 91,509 636,874 955,012 1,157,342 438,239 Culture and recreation 2,048,780 3,501,837 3,487,225 4,078,539 2,508,565 3,430,224 4,046,439 4,234,538 4,761,048 5,298,964 Community development 7,974,880 8,144,128 7,355,831 9,941,951 11,812,417 15,929,420 10,509,106 10,164,525 9,717,278 9,135,208 General Government - - - 1,391,940 760,606 654,039 530,775 734,991 801,522 930,439 Operating grants and contributions 2,667,058 2,488,706 4,015,502 2,990,211 4,828,837 3,601,973 3,647,813 5,331,657 15,156,040 6,363,136 Capital grants and contributions 9,355,707 40,531 39,781 47,234 2,504,722 5,688,200 1,531,157 200,933 1,299,231 5,586,809 Total governmental activities program revenues 25,411,982 17,739,595 18,449,627 22,482,790 25,991,865 33,386,558 24,099,856 24,469,361 36,270,643 32,024,997 Business-type activities:

Charges for services:

Water $ 19,884,850 $ 20,180,931 $ 22,202,069 $ 24,026,385 $ 25,666,777 $ 28,340,076 $ 29,894,129 $ 27,720,676 $ 31,394,962 $ 34,356,427 Sewer 16,460,140 16,272,533 16,753,094 18,674,547 19,042,384 21,501,546 23,642,048 22,341,314 23,302,912 24,096,372 Parking 7,408,729 4,666,970 5,226,780 5,443,038 3,293,941 2,567,908 4,890,317 6,022,372 9,663,683 8,307,559 Transit 659,471 666,296 703,451 776,808 633,566 331,352 713,777 809,969 1,003,116 990,738 Operating grants and contributions 2,888,820 4,180,386 3,099,618 3,259,975 4,712,832 3,742,594 5,156,782 7,355,896 6,762,934 8,054,586 Capital grants and contributions - - - - - - - - - 4,712,879 Total business-type activities programs revenues 47,302,010 45,967,116 47,985,012 52,180,753 53,349,500 56,483,476 64,297,053 64,250,227 72,127,607 80,518,561 Total primary government program revenues $ 72,713,992 $ 63,706,711 $ 66,434,639 $ 74,663,543 $ 79,341,365 $ 89,870,034 $ 88,396,909 $ 88,719,588 $ 108,398,250 $ 112,543,558 Net Revenues (Expenses):

Governmental activities $ (36,759,155) $ (49,387,787) $ (58,948,940) $ (64,559,739) $ (60,938,560) $ (51,025,258) $ (77,023,254) $ (65,042,220) $ (80,410,536) $ (82,526,742) Business-type activities 10,334,964 7,345,523 5,848,721 8,816,949 8,804,874 11,868,180 22,459,743 19,134,414 9,314,524 20,658,150 Total primary government $ (26,424,191) $ (42,042,264) $ (53,100,219) $ (55,742,790) $ (52,133,686) $ (39,157,078) $ (54,563,511) $ (45,907,806) $ (71,096,012) $ (61,868,592) Continued
Schedule 2
City of San Luis Obispo, California
Changes in Net Position, Last Ten Fiscal Years
(Accrual Basis of Accounting)
211

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 General Revenues and Other Changes in Net Position:

Governmental activities:

Sales and use taxes $ 24,676,377 $ 24,068,665 $ 24,559,570 $ 26,444,775 $ 24,125,439 $ 32,847,453 $ 51,419,561 $ 52,374,199 $ 52,883,260 $ 53,837,371 Property taxes 10,186,858 10,756,477 11,425,510 12,238,357 13,301,736 14,197,869 14,716,412 15,635,545 16,381,159 17,240,694 Transient occupancy tax 7,127,756 7,381,989 7,514,289 8,061,087 6,325,841 6,960,035 10,650,762 11,037,037 11,063,012 11,417,888 Utility users tax 5,413,720 5,539,407 5,627,356 4,919,892 5,439,144 5,225,979 5,338,325 6,904,194 6,301,505 7,501,436 Property tax in-lieu of vehicle license fees 4,113,244 4,353,912 4,637,253 4,961,080 5,290,215 5,660,661 5,994,592 6,283,397 6,815,975 7,273,431 Other taxes and fees 4,800,592 3,929,377 5,006,594 4,332,557 4,883,677 5,578,944 5,800,333 7,216,335 7,209,793 7,601,061 Investment earnings 825,760 997,995 164,434 1,618,354 3,368,951 435,818 (1,638,993) 2,350,922 6,473,385 6,691,998 Miscellaneous and other - - - 146,579 1,001,369 1,019,626 1,213,401 1,774,126 1,369,106 1,439,962 Prior period adjustment - - - - - 745,285 - - -
Transfers 1,436,048 1,051,563 1,198,027 2,456,035 1,889,900 1,992,911 1,685,314 2,243,612 2,636,032 3,214,820 Total governmental activities 58,580,355 58,079,385 60,133,033 65,178,716 65,626,272 74,664,581 95,179,707 105,819,367 111,133,227 116,218,661 Business-type activities
Investment earnings $ 845,906 $ 182,261 $ 320,471 $ 2,516,216 $ 2,880,634 $ 577,250 $ (1,207,118) $ 2,618,340 $ 8,367,903 $ 8,639,215 Income from investment in joint venture 239,200 206,700 209,300 (25,469) 153,949 519,677 585,101 391,993 198,170 - Prior period adjustment - - - - - (907,350) - - -
Transfers (1,436,048) (1,051,563) (1,198,027) (2,456,035) (1,889,900) (1,992,911) (1,685,314) (2,243,612) (2,636,032) (3,214,820) Total business-type activities (350,942) (662,602) (668,256) 34,712 1,144,683 (1,803,334) (2,307,331) 766,721 5,930,041 5,424,395 Total primary government $ 58,229,413 $ 57,416,783 $ 59,464,777 $ 65,213,428 $ 66,770,955 $ 72,861,247 $ 92,872,376 $ 106,586,088 $ 117,063,268 $ 121,643,056 Change in net position:

Governmental activities $ 21,821,200 $ 8,691,598 $ 1,184,093 $ 618,977 $ 4,687,712 $ 23,639,323 $ 18,156,453 $ 40,777,147 $ 30,722,691 $ 33,691,919 Business-type activities 9,984,022 6,682,921 5,180,465 8,851,661 9,949,557 10,064,846 20,152,412 19,901,135 15,244,565 26,082,545 Total primary government $ 31,805,222 $ 15,374,519 $ 6,364,558 $ 9,470,638 $ 14,637,269 $ 33,704,169 $ 38,308,865 $ 60,678,282 $ 45,967,256 $ 59,774,464 Changes in Net Position, Last Ten Fiscal Years
(Accrual Basis of Accounting)
Continued
Schedule 2
City of San Luis Obispo, California
212

Fiscal Sales Local Property Transient Utility Property Franchise Business Other Year and Use Sales (Note 2) (Note 1) Occupancy Users in-lieu of VLF Fees Tax Taxes Total 2015-16 17,498,218 7,178,159 10,186,858 7,127,756 5,413,720 4,113,244 1,537,922 2,491,516 771,154 56,318,547 2016-17 16,737,005 7,331,660 10,756,477 7,381,989 5,539,407 4,353,912 1,557,128 2,372,249 737,826 56,767,653 2017-18 17,055,085 7,504,485 11,425,510 7,514,289 5,627,356 4,637,253 1,597,655 2,663,686 745,253 58,770,572 2018-19 18,119,545 8,325,230 12,238,357 8,061,087 4,919,892 4,961,080 1,428,296 2,630,499 273,762 60,957,748 2019-20 16,571,064 7,554,375 12,913,661 6,325,841 5,439,144 5,290,215 1,888,414 2,995,263 388,075 59,366,052 2020-21 20,067,740 12,779,713 14,197,869 6,960,035 5,225,979 5,660,661 1,796,829 3,782,115 425,136 70,896,077 2021-22 22,247,303 29,172,258 14,716,412 10,650,762 5,338,325 5,994,592 1,978,295 2,823,163 998,875 93,919,985 2022-23 21,865,468 30,508,731 15,635,545 11,037,037 6,904,194 6,283,397 2,349,603 3,281,010 1,585,722 99,450,707 2023-24 22,285,972 30,597,288 16,381,159 11,063,012 6,301,505 6,815,975 2,366,286 2,942,425 1,901,082 100,654,704 2024-25 22,911,086 30,926,285 17,240,694 11,417,888 7,501,436 7,273,431 2,622,351 3,138,272 1,840,438 104,871,881 Notes:
1) Property tax revenues are presented net of SB2557 County administrative fees (approximately 3% of total property tax revenues).

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

In November 2020 voters in San Luis Obispo replaced the local half-percent sales and use tax with a 1.5% local sales and use tax (Measure G-20). (Accrual Basis of Accounting)
Schedule 3
City of San Luis Obispo, California
Governmental Activities Tax and Franchise Revenues by Source Last Ten Fiscal Years
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Revenue Trends
Sales and Use Local Sales Property Transient Occupancy Utility Users Property in-lieu of VLF Franchise Fees Business Tax Other Taxes 213

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 General fund:

Nonspendable:

Prepaid items 56,020 3,173,248 3,520,473 51,636 - 41,155 90,797 101,462 23,481 5,533,017 Restricted for:

Debt service 489,056 128,102 159,724 - - - - - - -
Risk management - - - - - - - - - 594,469
Committed to:

General government programs 4,468,863 9,428,034 8,693,113 - - 9,299,971 5,696,864 5,307,988 1,776,826 848,111 Contingency Fund - - - - - 11,830,380 12,014,000 13,727,000 10,826,500 14,607,203 Risk management - - - - - 1,955,966 1,845,935 585,456 585,456 4,437,620 Assigned to:

CalPERS pension payment - - - - - 10,200,000 2,000,000 2,000,000 2,000,000 2,000,000 Contingency Fund 11,092,782 10,902,368 10,171,464 13,418,400 10,251,000 - - - - - Solid Waste AB939 - - - - - - - 281,000 237,147 270,825 Establishment of Section 115 Trust - - - - 1,400,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 Revenue stabilization - - - - 1,000,000 - - 2,000,000 2,000,000 2,000,000 Development Services 382,396 41,110 596,796 531,000 899,277 710,657 530,657 464,136 214,136 145,136 SLO Repertory Theater Grant - - - - - - 3,940,000 3,940,000 3,940,000 6,700,000 Tenant Improvement program/Economic Development - - - - - - - 1,400,000 1,400,000 608,000 Storm Related Costs - - - - - - - - 5,125,068 6,034,158 General government programs - - - - - - 4,270,529 - - - Public Safety - - - - 1,096,215 929,344 - - - -
Risk management - - - - 1,498,078 - - - - -
City Attorney - 100,000 100,000 - 100,000 100,000 - - - - Subsequent years expenditures 2,716,534 - - 9,908,932 10,284,119 4,738,806 - 2,455,573 6,009,831 2,559,825 Unassigned 10,419,881 2,723,292 6,334,870 6,185,574 7,122,607 5,311,792 8,356,724 8,275,453 9,191,321 3,468,954 Total general fund 29,625,532 26,496,154 29,576,440 30,095,542 33,651,296 47,118,071 40,745,506 42,538,068 45,329,766 51,807,318 Continued
Schedule 4
City of San Luis Obispo, California
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
For the Fiscal Year Ended June 30
214

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 All other governmental funds:

Nonspendable - 5,642 (71,687) 292,641 - - 8,681 - - -
Restricted for:

Debt service 2,119,724 2,119,611 1,653,109 1,791,026 2,226,898 2,575,367 2,540,255 2,141,431 - - Public safety programs 23,492 20,786 3,073 - 32,332 63,418 864,848 68,456 897,746 671,669 Transportation projects - - - 8,151,487 9,371,824 10,519,994 8,051,050 7,567,001 11,232,312 7,885,873 Affordable housing programs - - - 2,944,549 8,698,494 9,292,304 9,893,314 11,023,649 10,215,217 10,394,877 Impact fee programs - - - 1,870,656 3,126,925 7,466,378 8,935,786 10,519,226 - 14,891,812 Parkland development programs - - - 3,528,662 4,709,560 3,405,468 3,107,198 3,205,116 11,073,516 599,240 Public art programs - - - 620,934 591,097 568,401 798,038 1,269,844 1,526,588 1,557,871 Tourism programs - - - 456,023 322,975 678,554 1,147,881 1,426,625 1,523,656 1,631,304 Infrastructure improvements - - - - - - - 157,805 368,032 491,596 Committed to:

Affordable housing programs 2,562,825 5,054,332 3,974,629 - - - - - - - Capital outlay 2,954,223 - - - - - - - - -
General government programs 7,463,605 - 8,092,594 - - - - - - - Impact Fees Programs 549,349 8,795,074 595,256 - - - - - - - Open space programs 1,265,620 588,743 2,363,347 - - - - - - - Parkland development programs - 2,728,883 - - - - - - - - Contingency fund - - 519,885 - - - - - - -
Public safety programs - - - - - - - 641,538 428,971 508,976 Assigned to:

Contingency fund - 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 Subsequent years expenditures 3,559,851 5,846,873 5,861,455 6,382,294 8,521,320 8,826,420 23,533,631 29,776,252 39,636,756 57,339,904 Unassigned - - - (318,422) (149,162) (5,782) - (2,424) (292,119) (45,541) Total all other governmental
funds 20,498,689 26,059,944 23,891,661 26,619,850 38,352,263 44,290,522 59,780,682 68,694,519 77,510,675 96,827,581 Total all governmental funds $ 50,124,221 $ 52,556,098 $ 53,468,101 $ 56,715,392 $ 72,003,559 $ 91,408,593 $ 100,526,188 $ 111,232,587 $ 122,840,441 $ 148,634,899 (Modified Accrual Basis of Accounting)
For the Fiscal Year Ended June 30
Continued
Schedule 4
City of San Luis Obispo, California
Fund Balances, Governmental Funds
Last Ten Fiscal Years
215

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Revenues:

Sales and use - general $ 17,498,218 $ 16,737,005 $ 17,055,085 $ 17,805,482 $ 16,571,064 $ 20,067,740 $ 22,247,303 $ 21,865,468 $ 22,285,972 $ 22,911,086 Sales and Use - local transaction tax 7,178,159 7,331,660 7,504,485 8,325,230 7,554,375 12,779,713 29,172,258 30,508,731 30,597,288 30,926,285 Prop. 172 Public Safety tax 405,066 405,512 397,488 314,063 416,459 425,136 529,299 544,521 520,952 519,740 Property tax 10,186,858 10,756,477 11,425,510 12,238,357 12,913,661 13,727,986 14,166,259 15,635,545 16,637,657 17,781,938 Transient Occupancy 7,127,756 7,381,989 7,514,289 8,061,087 6,325,841 6,960,035 10,650,762 11,037,037 11,063,012 11,417,888 Utility users tax 5,413,720 5,539,407 5,627,356 4,919,892 5,439,144 5,225,979 5,338,325 6,904,194 6,301,505 7,501,436 Property tax in-lieu of VLF 4,113,244 4,353,912 4,637,253 4,961,080 5,290,215 5,660,661 5,994,592 6,283,397 6,815,975 7,196,670 Franchise fees 1,537,922 1,557,128 1,597,655 1,428,296 1,888,414 1,796,829 1,978,295 2,349,603 2,366,286 2,622,351 Business tax 2,491,516 2,372,249 2,663,686 2,630,499 2,995,263 3,782,115 2,823,163 3,281,010 2,941,928 3,138,272 Cannabis tax - - - - - - 998,875 1,127,744 1,116,495 814,502 Real property transfer 366,088 332,314 347,765 273,762 388,075 469,883 550,153 457,978 528,088 484,692 Fines, forfeitures and penalties 172,353 139,534 199,374 155,269 239,048 223,882 173,915 195,991 266,103 340,172 Use of money and property 825,760 260,169 164,434 1,996,382 2,005,968 219,507 (2,151,227) 1,999,872 5,329,747 6,264,020 Subventions and grants 11,771,980 2,624,753 4,156,333 3,110,689 7,538,893 10,719,698 6,446,192 6,364,704 17,387,665 13,890,322 Charges for services 13,622,945 15,173,707 14,672,746 18,394,586 17,828,561 22,090,479 17,657,128 18,418,552 19,108,699 18,330,989 Other revenues 242,744 446,456 634,391 590,796 708,579 717,440 506,722 719,724 215,095 453,196 Total revenues 82,954,329 75,412,272 78,597,850 85,205,470 88,103,560 104,867,083 117,082,014 127,694,071 143,482,467 144,593,559 Continued
Schedule 5
City of San Luis Obispo, California
Revenues, Expenditures and Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years
(Modified accrual basis of accounting)
-
50,000,000
100,000,000
150,000,000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Total Revenue
216

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Expenditures:

Current:

General Government $ 12,409,567 $ 11,824,360 $ 12,709,324 $ 13,769,778 $ 14,503,410 $ 13,041,242 $ 17,197,912 $ 23,646,307 $ 17,570,930 $ 17,612,764 Public safety 26,468,454 28,091,747 28,862,906 31,714,220 30,216,995 31,714,578 39,921,208 37,425,928 39,889,845 43,977,463 Transportation 3,317,177 3,780,804 3,565,022 3,495,909 3,710,943 4,450,572 5,131,132 5,408,704 5,557,957 8,823,908 Culture and recreation 7,428,198 7,712,834 8,571,184 8,636,582 8,416,687 9,458,448 10,440,543 11,015,177 11,088,967 12,773,680 Community development 10,770,827 10,300,894 10,815,667 10,677,334 10,477,062 11,101,465 15,067,518 14,867,023 15,345,346 15,583,291 Debt service:

Principal 1,792,849 2,101,296 15,665,904 1,974,050 1,605,239 1,602,039 1,467,402 1,859,782 1,230,724 1,459,235 Interest 1,349,216 1,215,504 1,524,180 809,977 993,697 808,586 774,747 745,735 721,853 657,135 Capital:

Public safety 1,220,759 1,772,454 506,491 706,918 182,235 107,965 248,613 1,577,415 445,716 483,540 Transportation 15,038,306 4,161,966 6,419,137 6,441,229 6,412,541 11,452,720 13,653,849 9,364,910 2,267,633 13,539,466 Leisure, cultural and social services 1,463,269 1,499,704 981,768 597,187 1,213,682 537,118 3,933,463 1,226,800 2,760,876 4,633,210 Community development (Note 1) 149,537 2,078,181 525,105 1,568,147 785,517 105,142 601,315 10,202,665 36,767,232 1,111,241 General government 590,263 633,682 1,192,424 4,695,978 2,081,482 2,492,435 1,619,793 2,365,432 1,726,059 1,649,952 Total expenditures 81,998,422 75,173,426 91,339,112 85,087,309 80,599,490 86,872,310 110,057,495 119,705,878 135,373,138 122,304,885 Excess of revenues
over(under)
expenditures 955,907 238,846 (12,741,262) 118,161 7,504,070 17,994,773 7,024,519 7,988,193 8,109,329 22,288,674 Continued
Schedule 5
City of San Luis Obispo, California
Revenues, Expenditures and Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years
(Modified accrual basis of accounting)
Continued
-
50,000,000
100,000,000
150,000,000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Total Expenditures
217

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Other Financing
Sources(Uses):

Issuance of debt/refunding debt $ 688,500 $ 1,141,468 $ 12,472,698 $ 673,095 $ - $ - $ - $ - $ (387,684) $ - Transfers in 12,747,578 15,739,036 19,815,144 9,064,256 9,455,785 15,460,955 35,273,279 39,735,789 53,605,957 40,232,580 Transfers out (11,311,530) (14,687,473) (18,617,117) (6,608,221) (7,565,885) (13,468,044) (33,587,965) (37,492,177) (50,969,925) (37,017,760) Other financing source - SBITA - - - - - - - 474,594 137,233 - Total other financing sources(uses) 2,124,548 2,193,031 13,670,725 3,129,130 1,889,900 1,992,911 1,685,314 2,718,206 2,385,581 3,214,820 Net change in fund balance $ 3,080,455 $ 2,431,877 $ 929,463 $ 3,247,291 $ 9,393,970 $ 19,987,684 $ 8,709,833 $ 10,706,399 $ 10,494,910 $ 25,503,494 Debt service as a
percentage of noncapital
expenditures 5.20% 5.37% 26.64% 4.08% 3.86% 3.46% 2.55% 2.82% 2.18% 2.14% Notes:

1. Community Development Block Grant (CDBG) expenditures are included in the Community Development total for purposes of this schedule.

2. Prior to 2021-22, cannabis tax was included in business tax Revenues, Expenditures and Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years
(Modified accrual basis of accounting)
Continued
Schedule 5
City of San Luis Obispo, California
-
50,000,000
100,000,000
150,000,000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Revenue, Expenditures, and Other
Revenue Expenditures Other Financing Sources
218

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Staffing:

Salaries and wages:

Regular salaries $ 24,790,947 $ 26,944,188 $ 26,666,447 $ 27,520,149 $ 28,601,004 $ 29,014,941 $ 31,822,988 $ 35,422,024 $ 38,125,168 $ 40,660,998 Temporary salaries 1,964,521 1,793,360 1,711,755 1,898,331 1,882,307 2,294,603 1,855,690 1,942,485 2,237,584 2,335,656 Overtime 3,473,489 3,604,336 4,420,756 4,241,294 3,292,469 4,527,789 4,412,287 4,504,561 4,443,880 5,623,060 Benefits:

Retirement 9,323,782 10,394,523 10,570,883 15,150,755 12,593,753 13,344,252 24,665,892 17,908,383 17,782,639 20,327,231 Group health/disability insurance 3,828,238 4,129,004 4,638,471 4,193,021 4,291,139 4,040,575 4,327,121 5,130,991 5,487,733 5,806,160 Medicare 418,704 455,966 469,688 477,925 481,571 505,450 537,516 593,725 631,755 682,664 Unemployment Reimbursements 5,159 150,929 61,972 - 61,240 101,575 17,484 41,464 40,438 53,758 Total staffing 43,804,840 47,472,306 48,539,972 53,481,475 51,203,483 53,829,185 67,638,979 65,543,634 68,749,198 75,489,526 Contract services 6,271,607 6,962,949 6,940,018 6,557,939 6,444,957 7,190,499 9,067,321 10,328,784 9,710,231 9,090,684 Other operating expenditures
Communications & utilities 2,192,384 2,023,057 2,190,695 2,444,564 2,115,821 3,348,001 3,780,633 3,867,295 3,905,223 4,024,401 Rents & leases 164,729 170,288 171,909 180,478 160,045 88,615 133,521 133,649 173,957 316,292 Insurance:

General liability & property 1,847,422 1,273,133 1,658,319 1,600,962 2,196,462 1,323,824 2,071,193 2,874,417 3,163,588 3,031,752 Workers compensation 2,019,722 1,627,423 2,145,046 2,422,843 2,611,827 2,037,611 2,181,044 2,844,913 1,605,230 774,732 Other operating expenditures 3,079,347 3,345,191 3,017,537 3,575,930 4,902,050 4,256,574 4,363,206 8,063,807 4,597,752 4,848,685 Total operating expenditures 9,303,604 8,439,092 9,183,506 10,224,777 11,986,205 11,054,625 12,529,597 17,784,081 13,445,749 12,995,862 Minor capital 92,853 203,098 90,346 - - 1,070 10,510 - - - Total program expenditures 59,472,903 63,077,445 64,753,842 70,264,191 69,634,645 72,075,379 89,246,406 93,656,498 91,905,178 97,576,072 Reimbursed expenditures (4,008,992) (4,164,747) (4,264,633) (3,981,789) (4,277,664) (4,578,402) (4,717,442) (4,461,578) (5,511,628) (5,367,608) Total general fund operating expenditures $ 55,463,911 $ 58,912,698 $ 60,489,209 $ 66,282,402 $ 65,356,981 $ 67,496,977 $ 84,528,964 $ 89,194,920 $ 86,393,550 $ 92,208,464 Schedule 6
City of San Luis Obispo, California
General Fund Operating Expenditures by Type
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
219

Fiscal Year Homeowners Secured Roll Nonunitary Unsecured Total Direct Market Value of Market Exemptions Gross Value Utilities Roll TOTAL Tax Rate (Note 1) Value 2015-16 41,518,400 7,166,010,320 4,883,115 317,266,793 7,488,160,228 1.00% 7,488,160,228 100% 2016-17 42,109,709 7,615,940,988 5,269,573 316,965,453 7,938,176,014 1.00% 7,702,282,828 100% 2017-18 42,702,377 7,844,131,236 4,369,188 331,183,030 8,179,683,454 1.00% 8,179,683,454 100% 2018-19 43,352,906 8,688,541,007 4,231,993 359,588,899 9,052,361,899 1.00% 9,052,361,899 100% 2019-20 43,335,854 9,156,811,458 3,990,145 360,372,662 9,521,174,265 1.00% 9,521,174,265 100% 2020-21 43,445,185 9,872,892,242 4,194,503 371,969,399 10,249,056,144 1.00% 10,249,056,144 100% 2021-22 43,644,354 10,449,275,830 4,154,621 369,153,263 10,822,583,714 1.00% 10,822,583,714 100% 2022-23 44,681,189 11,352,719,604 3,840,493 414,262,072 11,770,822,169 1.00% 11,770,822,169 100% 2023-24 45,448,900 11,765,407,582 3,768,692 414,282,418 12,183,458,692 1.00% 12,183,458,692 100% 2024-25 46,290,669 12,510,668,163 3,681,976 495,255,596 13,009,605,735 1.00% 13,009,605,735 100% Notes: 1) Valuations are established by the County Assessor of the County of San Luis Obispo, except for property owned by private utility companies, which is valued by the State of California. The City assumes that Market Values are equal to total Assessed Valuation. 2) For comparison purposes, gross assessed valuations include homeowners' exemptions. Although these exemptions reduce property tax collections, the revenue loss is reimbursed by the State of California. As such, gross assessed valuation is the revenue base used in establishing property tax-related revenues.

Source: HdL, Coren & Cone ACFR 2024-25 report - 2024/25 Roll Summary table.

Gross Assessed Valuation (Notes 1 and 2)
Schedule 7
City of San Luis Obispo, California
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
-
2,000,000,000
4,000,000,000
6,000,000,000
8,000,000,000
10,000,000,000
12,000,000,000
14,000,000,000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Total Assessed Value
Secured Roll Gross Value Nonunitary Utilities Unsecured Rolls 220

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Proposition 13 maximum tax rate (Note 2) 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Voter approved indebtedness:

State Water Bond 0.00374 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00363 0.00365 Cuesta Community College 2014 A & A1 0.01925 0.01925 0.01925 0.01925 0.01925 0.01925 0.01925 0.01925 0.01925 0.01750 San Luis Coastal Usd 2014 Series A & B 0.04900 0.04900 0.04900 0.04900 0.04900 0.03900 0.03900 0.03500 0.08400 0.08400 Total (Notes 1 and 3) 1.07199 1.07225 1.07225 1.07225 1.07225 1.06225 1.06225 1.05825 1.10688 1.10515 Notes:

1. Property tax rates are levied per $100 of assessed valuation. The tax rate information provided is for Tax Rate Area 003-000, which is the largest tax rate area in the City.

2. The passage of Proposition 13 on June 6, 1978 established a maximum County-wide levy for general revenue purposes of 1% of market value.

Voter-approved tax rates for the retirement of long-term liabilities were excluded from this limit.

3. It is not possible to identify tax rates for individual agencies however, the following is a summary of derived property tax allocations within Tax Rate Area 003-000 for Fiscal Year 2022-23 Source: HdL, Coren & Cone ACFR 2024-25 report - Direct & Overlapping Property Tax Rates table Base ERAF Net
Rate Allocation Apportionment
San Luis Coastal Unified School District 36.10 0.00 36.10 San Luis Obispo County - General Fund 21.86 (8.08) 13.78 City of San Luis Obispo 14.83 * (3.48) 11.35
San Luis Obispo Community College District 6.42 0.00 6.42 County School Services 3.81 0.00 3.81
City/County Library 1.98 (0.32) 1.66
Port San Luis Harbor 1.63 (0.44) 1.19
Other Agencies 1.38 (0.32) 1.06
Education Revenue Augmentation Fund (ERAF) 12.01 12.64 24.65 Total 100% 0% 100%
*The County further adjusts the 18.4% base rate for revenue shifts to school districts as directed by the State as part of their cuts to local agencies, resulting in an effective rate for the City of approximately 14.9%.

Source: HdL, Coren & Cone ACFR 2024-25 report - Property Tax Dollar Breakdown, San Luis Obispo County Assessor 2024-25 Post ERAF TRA Allocation Factors Schedule 8
City of San Luis Obispo, California
Property Tax Rates
Last Ten Fiscal Years
221

Number of Secured Percent of Total Number of Secured Percent of Total Owner Parcels Assessed Value Rank City Assessed Value Parcels Assessed Value Rank City Assessed Value CAP VIII - Mustang Village LLC 5 104,238,003 1 0.83% 4 78,358,102 2 1.12% Sierra Vista Hospital Inc. 8 85,481,569 2 0.68% 8 77,979,526 3 1.12% Jamestown Premier San Luis Obispo Retail 9 82,595,523 3 0.66% 9 105,432,430 1 1.51% Charles Pasquini Jr Trust Et Al 8 77,074,813 4 0.62% 9 61,066,537 4 0.88% San Luis Obispo Promenade DE LLC 10 73,061,091 5 0.58%
Irish Hills Plaza East LLC 5 55,353,405 6 0.44%
Vintage at San Luis Obispo Alderwood 2 53,060,400 7 0.42% Quaglino Properties LLC 27 47,314,188 8 0.38%
Costco Wholesale Corporation 2 42,697,281 9 0.34% 1 34,284,730 7 0.49% JCC Mission LLC Et Al 1 41,120,027 10 0.33%
SLO Promenade Limited Partnership 10 50,419,038 5 0.72% Irish Hills Plaza West II LLC 6 46,963,546 6 0.67%
Marigold Center LLC 9 29,923,245 8 0.43%
Bre Atlas Property Owner LLC 1 27,900,000 9 0.40%
Target Corporation 1 26,413,114 10 0.38%
Total 77 $ 661,996,300 5.28% 58 $ 538,740,268 7.72%
Source: HdL, Coren & Cone ACFR 2024-25 report - Top Ten Property Taxpayers table. 2015-16 data is from the City's ACFR.

Schedule 9
2024-25 2015-16
Current Year and Nine Years Ago
Principal Property Tax Payers
City of San Luis Obispo, California

94.72%

5.28%
Property Tax Payers for 2024-25
Remaining Property Tax Payers Top 10 Property Tax Payers

92.28%

7.72%
Property Tax Payers for 2015-16
Remaining Property Tax Payers Top 10 Property Tax Payers 222

Total Secured Current Year Percent
Fiscal Tax Levy Current Year Percent Delinquencies Delinquent Year (Notes 1 and 2) Collections Collected (Note 3) (Note 3) 2015-16 9,707,340 9,707,340 100% 0 0
2016-17 10,250,205 10,250,205 100% 0 0
2017-18 10,868,920 10,868,920 100% 0 0
2018-19 11,648,706 11,648,706 100% 0 0
2019-20 12,180,662 12,180,662 100% 0 0
2020-21 12,957,910 12,957,910 100% 0 0
2021-22 13,628,729 13,628,729 100% 0 0
2022-23 14,458,958 14,458,958 100% 0 0
2023-24 15,407,147 15,407,147 100% 0 0
2024-25 16,316,087 16,316,087 100% 0 0
Notes:

1. The secured property tax roll is composed of ad valorem taxes as well as special assessments, and is calculated by the San Luis Obispo County Auditor-Controller.

Auditor-Controller. The San Luis Obispo County Tax Collector is responsible for all property tax roll collections within the City of San Luis Obispo. The amount reported is before the SB2557 County administrative fees of approximately 3% of total property tax revenues.

2. The secured levy does not include supplemental assessments, unsecured tax revenues, or prior year adjustments, which can be significant. For example, in 2012-13 revenue to the City from supplemental assessments was $99,500 and $215,100 from unsecured. A one-time refund was received from the County Auditor- Controller, refunding $632,800 representing prior overcharges for the SB2557 fee. Property tax revenues totaled $8,740,762.

3. The City has elected the Teeter Plan method of property tax collection, whereby the County remits 100% of taxes levied and pursues collection and retains any delinquent taxes and related penalties and interest.

Source: San Luis Obispo County Auditor-Controller - 2024-25 Property Tax Estimates and Delinquencies Report Schedule 10
City of San Luis Obispo, California
Secured Property Tax Roll Levies and Collections
Last Ten Fiscal Years
223

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Sales
In Thousands of Dollars
Apparel stores 74,946 72,394 74,048 73,158 71,378 51,094 73,222 72,632 72,811 73,384 General merchandise stores 183,397 181,260 182,975 180,609 182,170 173,784 203,468 234,669 238,900 244,879 Food and drug stores 43,798 43,486 46,085 47,337 49,158 50,038 49,500 52,204 54,559 55,552 Eating & drinking palces 171,620 177,675 185,156 187,369 193,107 141,413 200,076 226,944 238,243 239,039 Building materials & farm tools 140,259 142,498 160,259 165,839 162,778 165,955 182,925 194,063 188,003 176,409 Auto dealers & supplies 305,248 307,369 320,794 322,503 322,235 324,523 402,683 392,900 403,769 441,636 Service stations 89,447 77,840 85,157 95,860 96,870 71,638 100,914 125,345 115,065 108,958 Other retail stores 276,311 281,280 279,946 280,799 261,681 245,366 301,138 306,870 291,574 285,120 Total retail stores 1,285,026 1,283,802 1,334,420 1,353,474 1,339,377 1,223,811 1,513,926 1,605,627 1,602,924 1,624,977 All other outlets 359,995 364,901 379,808 415,830 430,535 489,112 576,301 652,869 647,968 658,839 Total 1,645,021 1,648,703 1,714,228 1,769,304 1,769,912 1,712,923 2,090,227 2,258,496 2,250,892 2,283,816 Source: HdL, Coren & Cone ACFR 2024-25 report - Taxable Sales by Category table Schedule 11
City of San Luis Obispo, California
Schedule of Taxable Sales and Permits by Category
Last Ten Calendar Years
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Taxable Sales by Category
(In Thousands of Dollars)
Apparel stores General merchandise stores Food and drug stores Eating & drinking palces Building materials & farm tools Auto dealers & supplies Service stations Other retail stores All other outlets
224