General Fund
4.4 Operating Transfers In
Public Art Fund: Annual operating transfers to the General Fund cover the cost of the Public Art Coordinator position and annual operating costs for supplies and services.
Gas Tax Fund: Gas tax revenue is received in a separate fund and transferred into the General Fund to be spent on City roads and transportation infrastructure.
Housing Fund: The Affordable Housing Fund makes an annual transfer to the General Fund to cover its operating costs, including the cost of the below market rate administrator.
Transportation Impact Fee Fund: This ongoing transfer is made to cover at least half of the debt service for the obligations incurred to finance the Los Osos Valley Road overpass project.
Tourism Business Improvement District (TBID) Fund: The TBID transfers 2% of its assessment revenue to the General Fund to cover operating expenses.
Parking Fund: This transfer includes debt service costs on an interfund loan used to acquire the parking lot at 1166 Higuera and an annual transfer related to construction at the former Garden Street parking lot.
Sewer & Water Funds: These transfers are for right-of-way maintenance costs incurred by the General Fund as calculated in the cost of services plan.
IT Replacement Fund: This transfer covers the annual cost to administer the EnerGov software tool.
Avila Ranch & San Luis Ranch Community Facilities Districts (CFDs): As called for in their respective agreements, the CFDs make transfers to reimburse the General Fund for agreed upon costs, such as police, fire, infrastructure construction and maintenance, and CFD administration.
The General Fund also makes transfers out for certain expenditures detailed in the table below:
4.5 Operating Transfers Out
Operating Transfers In FY 2026-27
From:
Public Art Fund $ 93,403
Gas Tax Fund 1,415,380
Housing Fund 207,000
Transportation Impact Fee Fund 280,000
TBID Fund 45,983
Parking Fund 368,920
Sewer Fund 1,054,708
Water Fund 734,607
IT Replacement Fund 152,000
Avila Ranch CFD 276,521
San Luis Ranch CFD 27,602
Total $ 4,656,123
26
General Fund
Public Safety Equipment Replacement Fund: These transfers are used to generate a balance to replace critical public safety equipment at predetermined intervals. By using a replacement fund, the City is able to set aside funding for significant purchases while shielding General Fund budgets from irregular spending trends.
Insurance Fund: These transfers cover the cost of workers’ compensation and liability insurance policies and claims. Any unspent funds can be used to pay for premiums and claims in future years.
Debt Service Fund: Transfers to the debt service fund are made to cover annual debt service payments on General Fund obligations.
The following table details transfers out of the General Fund, which includes the Local Revenue Measure Fund, to the various Capital Outlay funds:
4.6 Capital Transfers Out
The City maintains the General Capital Outlay Fund for typical projects as well as other, smaller funds for unique purposes like tracking asset replacement cycles, segregation of funds for public art, or investments in upcoming major infrastructure projects.
The transfer to the General Capital Outlay fund includes a recommended transfer of $5,125,068 from the Assigned Balance of the General Fund to close out the Winter 2023 Emergency Storm Recovery project.
These funds were assigned within the General Fund for this purpose pending payment of invoices on open purchase orders. All invoices have been paid and the transfer can now be completed.
The Infrastructure Investment Fund was used to fund additional capital projects in FY 2025-26 and the recommended transfer is a reimbursement of those funds.
The table below details the transfers into the General Fund under the Cost Allocation Plan:
4.7 Reimbursement Transfers In
Operating Transfers Out FY 2026-27
To:
Public Safety Replacement Fund $ 236,226
Insurance Fund 6,000,000
Debt Service Fund 1,512,468
Total $ 7,748,694
Capital Transfers Out FY 2026-27
To:
General Capital Outlay Fund $ 28,867,745
Infrastructure Investment Fund 787,771
IT Replacement Fund 522,228
Public Art Fund 310,000
Fleet Replacement Fund 212,000
Total $ 30,699,744
27
General Fund
The Cost Allocation Plan was presented to Council on March 3, 2026, and can be found at the following link: https://opengov.slocity.org/WebLink/DocView.aspx?id=222284&dbid=0&repo=CityClerk Long Term Forecast
The long-term forecast is an essential planning tool for the City and its ongoing service delivery. While the City adopts a two-year Financial Plan that must be balanced, the outer years of the forecast are presented to show the availability of resources into the future. The forecast is updated at least annually, or when new information becomes available that suggests that the City’s financial trajectory has materially changed.
The forecast presented in the 2025-27 Financial Plan indicated that the General Fund would have a structural deficit beginning in FY 2027-28. This was driven by a slowdown in revenue and the planned cost to operate a new fire station (fifth fire station in the City). After better than expected revenue growth, operating expenditure reductions, and a continuation of Capital Expenditures at Financial Plan levels in FY 2027-28 and FY 2028-29 ($1 million lower than previously forecasted), the structural deficit has been addressed and only a small deficit in FY 2027-28 remains due to the planned opening of the fifth fire station. The full forecast is shown below:
Reimbursement Transfers In FY 2026-27
From:
Water Fund $ 1,681,910
Sewer Fund 1,854,624
Whale Rock Fund 327,855
Parking Fund 1,379,686
Transit Fund 391,973
Total $ 5,636,048
28
General Fund
4.8 Long Term Forecast
Significant assumptions in the forecast include:
• Continued economic growth: The City benefits from diversified revenue streams. However, many of these revenue streams rely on discretionary consumer spending and are therefore cyclical. This forecast assumes that revenue growth rates remain at typical levels of around 3% per year. • Energy costs: The current budget includes one-time increases to fuel budgets with the assumption the current price shock is short lived. No impacts to revenue or other costs are modeled in. • Staffing costs: Inflation is currently trending at +3.8% year over year as measured by the April 2026 Consumer Price Index. Inflation has led the City and other agencies to increase compensation Actuals Financial Plan Forecast
FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
Tax & Franchise Revenue
Sales Tax $ 54,357,111 $ 55,470,441 $ 56,580,171 $ 58,116,573 $ 60,150,653 Property Tax 24,923,847 25,944,966 27,112,490 27,925,865 28,903,270 Transient Occupancy Tax 11,417,888 11,099,705 11,495,652 11,840,522 12,254,940 Utility User Tax 7,501,436 6,605,306 7,399,048 7,621,019 7,887,755 Business Tax 3,138,271 3,230,170 3,262,472 3,360,346 3,477,958 Franchise Fees 2,622,351 2,242,429 2,664,697 2,744,638 2,840,700 Cannabis Tax 814,502 1,000,000 765,054 788,006 815,586
Total Tax & Franchise Revenue 104,775,406 105,593,017 109,279,584 112,396,968 116,330,862 User Fees
Development Review 5,697,332 4,606,812 5,674,691 5,844,932 6,049,504 Parks & Recreation 2,643,907 2,280,283 2,320,590 2,390,207 2,473,865 Fire 3,331,998 1,779,183 1,744,354 1,796,685 1,859,569
Police 834,584 754,482 690,200 710,906 735,788
Business Licenses 792,548 632,470 569,125 586,199 606,716 Total User Fees 13,300,370 10,053,229 10,998,960 11,328,928 11,725,441 General Government 7,778,702 2,175,845 1,531,752 1,456,985 1,463,846 2023 Storm Reimbursement 909,090 - - - -
Total Fees & Other Revenue 21,079,071 12,229,074 12,530,712 12,785,914 13,189,287 Total Revenue 126,763,568 117,822,091 121,810,296 125,182,882 129,520,149 Operating Expenditures
Staffing 75,489,526 80,917,096 80,187,905 83,572,802 86,924,827 Other Operating Expenditures 18,291,470 21,702,662 17,908,102 18,135,569 18,125,895 Cost Allocation (5,367,608) (5,671,069) (5,636,048) (5,805,129) (5,979,283) Total Operating Expenditures 88,413,388 96,948,689 92,459,959 95,903,242 99,071,438 Debt Service 1,757,889 1,724,965 1,512,468 1,515,354 1,513,783 Capital 26,010,000 25,523,604 30,699,744 26,602,020 27,154,060 Other Transfers 7,231,653 3,147,101 1,580,103 1,656,495 1,667,514 Total Expenditures 123,412,930 127,344,360 126,252,275 125,677,111 129,406,796 Revenue - Expenditures 3,350,638 (9,522,269) (4,441,979) (494,229) 113,353 Use of Fund Balance 9,167,831 9,522,269 5,371,068 - -
Surplus / (Deficit) $ 12,518,469 $ - $ 929,089 $ (494,229) $ 113,353 29
General Fund
significantly in recent years. This forecast assumes that the City’s staffing costs will increase with annual 3% cost of living adjustments to salaries. The City has contractual agreements calling for 3% annual salary increases with the Public Safety bargaining units through the end of FY 2026-27 and through FY 2027-28 for all other labor groups. This projection assumes that future agreements will be negotiated with the same 3% increases.
• Vacancy Rates: Savings attributable to vacant positions are currently trending at 3% of staffing budgets excluding CalPERS unfunded liability payments, lower than in recent years where 4-7% was typical. This is projected to continue in FY 2026-27 and the out-years of the forecast assume a return to 4% savings.
The balanced budget leaves sufficient fund balance for 20% of operating expenditures excluding the annual CalPERS unfunded liability payment, or 17% of total operating expenditures (including the annual CalPERS unfunded liability payment) beginning in FY 2026-27, as well as the projected committed and assigned balances. The excess is shown below as Undesignated Fund Balance available for future appropriation:
4.9 Forecasted Fund Balance
The $852,508 in undesignated fund balance projected at the end of FY 2026-27 is lower than the annual budgetary surplus of $929,089 because the growing operating expenditures budget necessitates an increase in the operating reserve.
Fund balance is generated by revenue and used by expenditures. When revenues exceed expenditures, fund balance increases, and vice versa.
Changes in Committed & Assigned Funds impact the Undesignated Fund Balance. When the Committed & Assigned Funds increase, this reduces Undesignated Fund Balance, and vice versa. These changes cannot always be predicted.
Each year, certain amounts are designated as Committed based on accounting rules and other binding commitments made by the City, such as the operating reserve and segregation of Local Revenue Measure Funds. Committed funds also include non-spendable, noncash assets like the interfund loan made to the Parking Fund. The City uses Assignments, which are dictated by the City Manager, to set aside certain other balances like contingent grants to outside organizations and the AB 939 regulated funds used for solid waste and recycling programs. At year end, any unspent balances on purchase orders are assigned for expenditure in the next fiscal year.
The table below illustrates this interaction for the next fiscal year:
Actuals Financial Plan Forecast
FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
Ending Fund Balance $ 46,447,466 $ 36,925,197 $ 32,483,218 $ 31,988,988 $ 32,102,342 Operating Reserve 14,607,203 14,974,278 15,438,344 16,010,034 16,470,510 Committed & Assigned Funds 28,371,308 21,563,433 16,192,365 16,192,365 16,192,365 Undesignated Fund Balance $ 3,468,954 $ 387,486 $ 852,508 $ (213,411) $ (560,534) Reserve Level 20% 20% 17% 17% 17%
30
General Fund
4.10 Fund Balance Detail
The non-spendable line includes non-cash assets which are properly included in fund balance but cannot be spent due to their non-cash nature. These assets are an interfund loan to the Parking Fund to finance the purchase of property located at 1166 Higuera and prepaid insurance premiums.
The Storm Related Reimbursements line represents funds received from the Federal Emergency Management Agency and California Office of Emergency Services to reimburse the General Fund for costs incurred to repair damage caused by the winter 2023 storms. This is the balance from FY 2024-25 and will be adjusted each year as additional funds are collected or appropriated.
Fund Balance FY 2026-27
Beginning Fund Balance $ 36,925,197
+Revenue 121,810,296
-Expenditures (126,252,275)
Ending Fund Balance 32,483,218
-Committed
Operating Reserve 15,438,344
Local Revenue Measure 848,111
Non-spendable 5,533,017
Subtotal 21,819,472
-Assigned:
SLO Rep Theater Grant 6,700,000
Revenue Stabilization Reserve 2,000,000
Solid Waste AB939 237,147
Storm Related Reimbursements 874,090
Subtotal 9,811,237
Unassigned Fund Balance: $ 852,508
31
Special Revenue & Other Funds
5. Special Revenue and Other Funds Summary
In addition to the General Fund and Enterprise Funds, the City maintains a number of Special Revenue Funds, Internal Service Funds, and Asset Replacement Funds. Like all funds, these are used to segregate money for specific purposes. Budgets for each fund and information on their purpose is included below.
These tables are reported on an initial budget basis, rather than as modified, to provide a clear trend of annual expenditures.
Avila Ranch CFD No. 2017-1
A Mello-Roos Community Facilities District (CFD) was established and approved by City Council on October 24, 2017 (Resolution No 10844), pursuant to section 5.02 of the Avila Ranch Development Agreement.
The CFD boundaries are identical to that of the Avila Ranch Development project and located at the northeast corner of Buckley Road and Vachell Lane. The Avila Ranch Project will include up to 720 dwelling units, 15,000 square feet of office and retail, 18 acres of parks, 53 acres of open space, riparian corridors and farmed agricultural land. The CFD was formed with purpose of funding services as well as facilities of the CFD. Services to be funded can include the maintenance and lighting of parks, parkways, streets, roads, and open space; flood and storm protection services; police & fire protection services; maintenance and operation of real property. Facilities to be funded can include park, recreation, parkway, and open space facilities; construction and undergrounding of utilities (water, natural gas, telephone lines, electric, cable television); and the acquisition, improvement, or rehabilitation of real property.
5.1 Revenue
The CFD’s revenues are projected to grow rapidly as development continues. This growth is expected to taper as the project nears completion.
The table above shows the estimated levy for the fund. The City’s consultants will complete their analysis to be used for actual tax levies shortly after budget adoption and, if needed, the budget will be revised.
These revisions are typically minor and do not impact expenditures.
5.2 Expenditures
Actuals Budget Supplement
Avila Ranch CFD FY 2024-25 FY 2025-26 FY 2026-27
Tax Revenue $ 560,516 $ 792,617 $ 942,663
Total Revenue $ 560,516 $ 792,617 $ 942,663
YoY Change 108% 41% 19%
Actuals Budget Supplement
Avila Ranch CFD FY 2024-25 FY 2025-26 FY 2026-27
Authorized Expenditures $ 50,435 $ 91,293 $ 152,675
Transfers 386,517 234,122 301,521
Total Expenditures $ 436,952 $ 325,415 $ 454,196
YoY Change 644% -26% 40%
32
Special Revenue & Other Funds
The CFD made reimbursement transfers to the General Fund for eligible expenditures including police protection, fire protection, and administrative expenses for the first time in FY 2024-25 and was larger than the proposed FY 2026-27 transfer because it included prior year balances. Transfers going forward are calculated based on the expected costs to provide eligible services.
Other authorized expenditures can include the maintenance and lighting of parks, parkways, streets, roads, and open space; flood and storm protection services; maintenance and operation of real property and are projected to increase as the development matures and maintenance activities become necessary.
San Luis Ranch CFD No. 2019-1
A Mello-Roos Community Facilities District was established and approved by City Council on April 16, 2019 (Ordinance No 1661), pursuant to section 5.02 of the San Luis Ranch Development Agreement. The boundaries of the CFD are identical to the San Luis Ranch Specific Plan and includes 131.4 acres approved for up to 580 dwelling units and commercial development, a 200-room hotel, 100,000 square feet of office space, 150,000 square feet of retail space, 7.8 acres of parks/ open space, and 52.3 acresof farmed agriculture land. The purpose of the CFD is to fund major road improvements, potable and nonpotable water system improvements, drainage system improvements, wastewater system improvements, solid waste improvements, park and paseo improvements, open space improvements, and utilities.
5.3 Revenue
Revenue is projected to decline despite typical annual growth in taxes. The fund historically has not budgeted for investment income on its cash balances, but once earned, these funds are available for future appropriation on eligible expenditures, however much of the investment income will be used to meet arbitrage compliance obligations to the U.S. Internal Revenue Service (IRS).
The table above shows the estimated levy for the fund. The City’s consultants will complete their analysis to be used for actual tax levies shortly after adoption and if needed, the budget will be revised. These revisions are typically minor and do not impact expenditures.
5.4 Expenditures
Actuals Budget Supplement
San Luis Ranch CFD FY 2024-25 FY 2025-26 FY 2026-27
Tax Revenue $ 1,345,180 $ 1,360,981 $ 1,395,512
Investment Income 566,745 - -
Total Revenue $ 1,911,925 $ 1,360,981 $ 1,395,512
YoY Change 2% -29% 3%
Actuals Budget Supplement
San Luis Ranch CFD FY 2024-25 FY 2025-26 FY 2026-27
Authorized Expenditures $ 181,313 $ 336,956 $ 727,018
Transfers 245,664 207,243 135,910
Debt Service 927,450 946,700 964,200
Total Expenditures $ 1,354,427 $ 1,490,899 $ 1,827,127
YoY Change 47% 10% 23%
33
Special Revenue & Other Funds
Authorized expenditures include debt service, administration, and payments to the developer. The Fund’s primary expenditure is for debt service on a bond issued to fund eligible improvements. The FY 2026-27 budget also includes a significant authorized expenditure for tax arbitrage payments, which are required when amounts borrowed on a tax preferred basis are invested prior to use on eligible projects.
The fund also budgets for transfers to the General Fund for administration costs and transfers to a capital fund for infrastructure costs.
Tourism Business Improvement District
The City established a Tourism Business Improvement District (TBID) as requested by the local lodging industry in 2008. The district levies an assessment equal to 2% of the lodging industry’s gross receipts for the purpose of tourism promotion for the benefit of the district’s constituents. The assessment is a special revenue and is administered in a separate and distinct fund.
5.5 Revenue
Revenues for the TBID are forecasted in line with the General Fund’s Transient Occupancy Tax. Strength in local tourism and newly opened hotels have benefited both the General Fund and the TBID in recent years.
5.6 Expenditures
The TBID sets its initial expenditures budget equal to anticipated revenue. This budget provides for staff to oversee the program, consultants to provide marketing and public relations services, and transfers to the General Fund to help offset overhead and administration costs. These expenditures are directed by the TBID Board and can be amended throughout the year as opportunities arise.
Boysen Ranch Conservation Fund
Boysen Ranch consists of approximately 116 acres bounded by Los Osos Valley Road, Foothill Boulevard, and O’Connor Way. In 2005, the City accepted and currently holds a series of conservation easements that protect approximately 25 acres at the Boysen Ranch to mitigate for impacts to wetlands and waters by the Home Depot, Costco, and other Irish Hills Plaza development projects on Los Osos Valley Road. Boysen Actuals Budget Supplement
TBID FY 2024-25 FY 2025-26 FY 2026-27
Assessments $ 2,304,764 $ 2,219,941 $ 2,299,130
Total Revenue $ 2,304,764 $ 2,219,941 $ 2,299,130
YoY Change 2% -4% 4%
Actuals Budget Supplement
TBID FY 2024-25 FY 2025-26 FY 2026-27
Staffing $ 241,390 $ 263,115 $ 300,764
Other Operating Expenditures 1,911,188 1,912,427 1,952,383 Transfers 44,914 44,399 45,983
Total Expenditures $ 2,197,492 $ 2,219,941 $ 2,299,130
YoY Change 1% 1% 4%
34
Special Revenue & Other Funds
Ranch is part of the City’s designated greenbelt. The funding was set up as an endowment to fund monitoring and maintenance of the restored wetland area.
5.7 Revenue
Relative to recent years, the budget for investment income has been set conservatively. Excess income will be reinvested and future earnings will be available for expenditure.
5.8 Expenditures
The fund budgets for authorized conservation expenditures including restoration, maintenance, and monitoring of the Boysen Ranch wetlands. Unspent funds are available for appropriation in future years.
Downtown SLO Business Improvement District
The Downtown Business Improvement District (DBID) was established in 1975 as a parking and promotions district for the City’s downtown area. As a special fee district, fees are collected from business license holders operating within the designated area and revenue supports the operations of Downtown SLO, a non-profit organization. The City and Downtown SLO (DSLO) agreed by contract that DSLO would provide various services for the economic, social, cultural, and environmental vitality and beautification of downtown San Luis Obispo. The assessment is a special revenue and is administered through a separate and distinct fund.
5.9 Revenue
Revenues are projected to exceed budget in FY 2025-26 and have been increased accordingly in FY 2026-
27. Actuals Budget Supplement
Boysen Ranch FY 2024-25 FY 2025-26 FY 2026-27
Investment Income $ 20,157 $ 7,500 $ 7,500
Total Revenue $ 20,157 $ 7,500 $ 7,500
YoY Change 10% -63% 0%
Actuals Budget Supplement
Boysen Ranch FY 2024-25 FY 2025-26 FY 2026-27
Authorized Expenditures $ 5,023 $ 7,500 $ 7,500
Total Expenditures $ 5,023 $ 7,500 $ 7,500
YoY Change -45% 49% 0%
Actuals Budget Supplement
Downtown FY 2024-25 FY 2025-26 FY 2026-27
Assessments $ 319,277 $ 246,713 $ 294,997
Total Revenue $ 319,277 $ 246,713 $ 294,997
YoY Change 20% -23% 20%
35
Special Revenue & Other Funds
5.10 Expenditures
100% of collected assessments are passed through to Downtown SLO to support their operations. The current budget appears much higher than FY 2024-25 actuals due to an accounting error in prior years that has since been rectified.
Insurance Fund
The Insurance Fund and Risk Management Program aim to protect the organization through risk transfer, risk control and risk avoidance. Safety in the workplace and in the community is promoted by minimizing accidents, reducing liabilities and associated costs. The City maintains an Insurance Fund for the purpose of paying its annual premiums for liability, workers’ compensation, special events, volunteer, property, and other insurances needed to protect the City and to manage the fluctuations in claims-related expenses. The Insurance Fund is managed by the Human Resources Department which runs the City’s Risk Management Program.
5.11 Revenue
The General Fund provides support for the Insurance Fund via interfund transfers. In addition to the $6 million budgeted annual transfer, as part of the FY 2025-26 Second Quarter Budget Report to the City Council in February, the City Council approved a transfer of $802,798 from General Fund Unassigned Fund Balance to increase fund balance to policy levels equal to 150% of the last five years of claims. Based on advice from the City’s consultants, an additional $3.1 million beyond the $802,798 is needed to meet the actuarial basis reserve level. This actuarial basis level is developed by consultants based on future claims that the City may face.
Staff plan to recommend allocation of General Fund Unassigned Fund Balance in future years to the Insurance Fund to meet actuarial reserve levels and evaluate the need for higher ongoing transfers to meet premium increases.
Actuals Budget Supplement
Downtown FY 2024-25 FY 2025-26 FY 2026-27
Authorized Expenditures $ 185,341 $ 246,713 $ 294,997
Total Expenditures $ 185,341 $ 246,713 $ 294,997
YoY Change -53% 33% 20%
Actuals Budget Supplement
Insurance FY 2024-25 FY 2025-26 FY 2026-27
Transfers in $ 6,000,000 $ 6,000,000 $ 6,000,000
Total Revenue $ 6,000,000 $ 6,000,000 $ 6,000,000
YoY Change -6% 0% 0%
36
Special Revenue & Other Funds
5.12 Expenditures
Expenditures include annual premiums, member contributions to California Joint Powers Insurance Authority and claims expenses within the self-insured retention limit. In recent years, claims and premiums have been well below budgeted amounts, as indicated by the large year over year increase from FY 2024- 25 actuals to the FY 2025-26 budget. Any savings relative to budget will increase the fund balance available to pay future claims. For FY 2026-27, the transfer in is slightly less than the total expenditures budget and staff will need to evaluate the appropriate ongoing annual transfer amount with the next Financial Plan.
Public Safety Equipment Replacement Fund
The Public Safety Equipment Fund (PSEF) was created with adoption of the 2019-21 Financial Plan to help budget and forecast the replacement of Public Safety equipment that has expired or become damaged.
The Fund received an original seed amount in FY 2019-20 and going forward, an annual allocation is made from the General Fund. Budgeting annual amortized amounts set aside in this project account allows for crucial public safety equipment to be replaced at scheduled intervals, which smooths out the annual contribution, reducing the impact on the budget at time of replacement.
5.13 Revenue
In recent years, including FY 2024-25, the fund received one-time transfers in to build fund balance, make additional purchases, and add equipment to the replacement schedule. This one-time funding has lapsed and transfers from the General Fund will continue at this lower level unless replacement costs increase or new equipment is added to the replacement schedule.
Actuals Budget Supplement
Insurance FY 2024-25 FY 2025-26 FY 2026-27
Workers Comp $ 774,732 $ 2,069,183 $ 2,355,887
Liability & Other 3,020,344 3,457,975 3,710,366
Total Expenditures $ 3,795,076 $ 5,527,158 $ 6,066,253
YoY Change -20% 46% 10%
Actuals Budget Supplement
Public Safety FY 2024-25 FY 2025-26 FY 2026-27
Transfers in $ 387,334 $ 236,226 $ 236,226
Total Revenue $ 387,334 $ 236,226 $ 236,226
YoY Change -1% -39% 0%
37
Special Revenue & Other Funds
5.14 Expenditures
Budgeted expenditures for the fund are based upon the replacements scheduled in each year and may exceed or fall short of transfers into the fund in any given year. This allows for general fund expenditures to remain consistent year over year while volatility from costly purchases is managed within the replacement fund.
Actuals Budget Supplement
Public Safety FY 2024-25 FY 2025-26 FY 2026-27
Equipment Purchases $ 307,329 $ 196,200 $ 298,100
Total Expenditures $ 307,329 $ 196,200 $ 298,100
YoY Change -49% -36% 52%
38
Local Revenue Measure
6. Local Revenue Measure
The Local Revenue Measure (LRM) is a 1.5 percent local sales tax approved by City voters in November 2020 that went into effect on April 1, 2021. It replaced the previous 0.5 percent local sales tax approved by City voters in November 2014. The revenue provided by this measure has become instrumental in building and maintaining public infrastructure and delivering critical operating programs to address emerging needs identified by the community.
Local Revenue Measure Ballot Language (G-20)
“To protect City of San Luis Obispo’s financial stability; maintain fire/community safety, health emergency/disaster preparedness; protect creeks from pollution; address homelessness; keep public areas clean/ safe; retain local businesses; maintain youth/senior services, streets, open space/natural areas, and other general services, by extending voter- approved funding at a 1.5¢ rate, providing approximately $21,600,000 annually until ended by voters; requiring audits/ all funds used locally” Revenue Forecast
The Local Revenue Measure forecast for FY 2026-27 was provided by the City’s sales tax consultants in April 2026 based on actual results through December 2025. This forecast is based on data segmented at the industry group level with unique growth rates for each, and factors in known business openings and closures.
The forecast, detailed below, assumes modest growth rates in the current fiscal year and the next after several years of sub inflationary growth.
6.1 Revenue
Budget by Priority
The City is careful to align LRM funding allocations with community priorities. These allocations change year to year based on emerging needs, large scale projects, and project readiness. The City’s Revenue Enhancement Oversight Commission (REOC) is an advisory body made up of five members of the community who are responsible for reviewing staff recommendations relative to the use of LRM dollars to ensure compliance with the priorities identified in the ballot language. The REOC reviewed the recommended use of LRM dollars in FY 2026-27 at their meeting on April 23, 2026. The total allocations of LRM funds for operating and capital expenditures are detailed in the table below:
Actuals Budget
FY 2024-25 FY 2025-26 FY 2026-27
Local Revenue Measure $ 30,926,285 $ 31,572,000 $ 32,284,000 YoY Growth 1.1% 2.1% 2.3%
39
Local Revenue Measure
6.2 Total Budget by Priority
These priorities also receive funding from other sources including the General Fund, grants, and in some cases, certain enterprise funds.
Changes from Financial Plan
The priority allocations above reflect the community’s feedback from development of the 2025-27 Financial Plan. Changes to recommended operating budget allocations since plan development reflect typical year-to-year changes in salaries and benefits and employee turnover. Changes to Capital Improvement Program (CIP) budget allocations are based project readiness and available resources.
Detailed budget allocations are listed in the tables below.
6.3 Capital Expenditures Budget:
Capital expenditures develop or maintain long term assets for community benefit. The tables below detail funding by project for capital expenditures:
Total Budget by Priority Operating Capital Total % of Total Street Maintenance and Transportation $ 981,403 $ 7,205,000 $ 8,186,403 25% Community Safety and Emergency Preparedness 3,757,860 1,901,133 5,658,993 18% Creek and Flood Protection 275,768 5,318,315 5,594,083 17% Protect Financial Stability 753,592 4,000,000 4,753,592 15% Youth/Senior Services and Recreational Facilities 1,147,279 1,822,500 2,969,779 9% Open Space/Natural Areas Preservation and Maintenance 1,062,134 743,500 1,805,634 6% Address Homelessness 992,462 - 992,462 3%
Other Services and Projects 901,122 - 901,122 3%
Economic Development and Business Retention 334,420 440,000 774,420 2% Safe and Clean Public Areas 217,511 430,000 647,511 2%
Total $ 10,423,552 $ 21,860,448 $ 32,284,000 100%
40
Local Revenue Measure
41
Local Revenue Measure
6.4 Operating Expenditures Budget:
Operating expenditures support the services and programs provided by the City. These include staff positions, contracted services provided by third parties, and other tools used by staff. The tables below detail operating expenditures by priority:
42
Local Revenue Measure
43
Local Revenue Measure
6.5 Local Revenue Measure Investments in Downtown
The City regularly allocates Local Revenue Measure dollars to support initiatives to support the safety, cleanliness and vibrancy of the downtown area. The table below includes a subset of Local Revenue Measure expenditures noted above that are focused on supporting the downtown area. Many other expenditures benefit the downtown area but not exclusively.
In addition to the above noted expenditures, the first of quarter local revenue measure funds collected (April 1 – June 30, 2021) provided $2 million in seed funding for economic development initiatives that have primarily been used to benefit the downtown like the buy local bonus and implementation of the Economic Development Strategic Plan.
Downtown Expenditures FY 2026-27
Sidewalk Replacement and Cleaning $ 250,000
Downtown Sidewalk Pressure Washing 17,000
Mission Plaza Railing Upgrade 35,000
Recycling-Solid Waste Big Belly in Downtown 85,000
Police Community Service Officers (FTE=4) 478,215
Police Officer (FTE=4) 782,849
Police Sergeant (FTE=1) 264,249
Economic Development Analyst (FTE=1) 107,420
Downtown Holiday Activation Support 150,000
Enhanced Downtown Cleaning 60,000
Beautification Gardener (FTE=1) 111,724
Total $ 2,341,457
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Debt Service
7. Debt Service
Debt financing plays an important role in helping the City build and maintain its infrastructure without diverting current revenues to pay for future projects. Staff carefully evaluate debt financing proposals to prudently manage the City’s debt burden and ensure that costs and benefits are aligned with debt paydown schedules. Debt service costs listed below include both interest and principal payments on the City’s outstanding debt balances expected at the end of FY 2025-26. In each fund with outstanding debts, the relevant fund summary will include a line item labeled “Debt Service” with a budget for these amounts.
The tables below include the abbreviated official names from the initial issuance documents with reference to the projects they financed. In many cases, issuances are refunded or refinanced after issuance and the debts are no longer directly attributable to a specific project. These issuances are described below as “refunding” bonds.
7.1 General Fund
The 2018 refunding lease revenue bond was issued to 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.
The 2023 refunding lease revenue bond was issued for the construction of the Cultural Arts District Parking Structure and to refund the 2012 lease revenue bonds, which refunded several other issuances.
Current debt service levels are equal to 1.2% of General Fund revenue. The City’s Debt Management Policy, last updated on November 15, 2022, dictatesthat general purpose annual debt service payments generally should not exceed 10% of General Fund revenue; and in no case should they exceed 15%. These limits are detailed in the table below:
7.2 Debt Limits
City Policy also limits direct debt to 2% of assessed valuation and provides that no more than 60% of capital improvement outlays will be funded from long-term financings. Based on the approximate assessed value of properties in the City of $14.3 billion, this policy limits total General Fund borrowings to $286 million.
Debt Issue - Asset Outstanding Principal Debt Service Retirement 2014 lease revenue bond - LOVR overpass $5,670,000 $421,231 2044 2018 lease revenue bond - refunding 6,225,775 721,487 2039 2023 lease revenue bond - refunding 1,360,000 369,750 2029 Total $13,255,775 $1,512,468 2044
Policy Limits Debt Service
10% of Revenue $ 12,181,030
15% of Revenue $ 18,271,544
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Debt Service
7.3 Water Fund
The 2018 refunding lease revenue bond was issued to 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.
The 2018 refunding revenue bond was issued to refund the 2006 water revenue bonds, which were originally issued to fund improvements to the water treatment plant.
7.4 Sewer Fund
The 2018 refunding lease revenue bond was issued to 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.
The City recently made final drawdowns on the Water Resource Recovery Facility (WRRF) upgrade loan and is awaiting final debt service schedules. As a result, the Sewer Fund debt service budget is currently based on estimates and actual debt service costs may vary modestly from budgeted amounts.
7.5 Parking Fund
The 2018 refunding lease revenue bond was issued to 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.
Debt Issue - Asset Outstanding Principal Debt Service Retirement 2018 lease revenue bond - refunding $ 180,595 $ 20,929 2039 2018 revenue bond - refunding 6,300,000 885,000 2035
2020 state I-Bank loan - water treatment plant 10,724,120 949,476 2040 Total $17,204,715 $1,855,405 2040
Debt Issue - Asset Outstanding Principal Debt Service Retirement 2009 state I-Bank loan - farm lift station $ 5,272,953 $ 531,716 2038 2014 US Bank wastewater lease agreement 1,770,696 632,872 2029 2018 lease revenue bond - refunding 199,605 26,399 2039 2019 SRF loan - WRRF upgrade 129,359,242 $ 5,899,110 2053 Total $136,602,496 $7,090,097 2053
Debt Issue - Asset Outstanding Principal Debt Service Retirement 2001 state I-Bank loan - Marsh St. garage $ 1,866,113 $ 409,682 2031 2018 lease revenue bond - refunding 2,684,000 359,684 2039 2023 lease revenue bond - refunding 41,075,000 2,824,125 2053 2023 interfund loan - 1166 Higuera 4,723,924 260,612 2053 Total $50,349,036 $3,854,103 2053
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Debt Service
The 2023 refunding lease revenue bond was issued for the construction of the Cultural Arts District Parking Structure and to refund the 2012 lease revenue bonds, which refunded several other issuances. 47
1 Capital Improvement Plan (CIP)
Fiscal Year 2026-27
Purpose of CIP The Capital Improvement Program (CIP) enables the City to plan, schedule, and finance capital projects to ensure cost effectiveness and conformance with established plans and policies. The City’s budget process guides the capital priorities through community input, Council goal setting, Local Revenue Measure priorities, and the biennially adopted Major City Goal work programs.
Through its adopted CIP, the City meets community needs by providing infrastructure that supports economic vitality, neighborhood wellness, housing, transportation, sustainability, recreation, public safety, cleanliness, and other basic public amenities. The City’s fiscal policies govern development and management of the CIP. In accordance with those policies, all construction projects and equipment expenditures of $25,000 or more are included within the program.
During the 2025–2027 financial planning process, the City established a two-year Capital Improvement Program (CIP) budget totaling $112 million. One year into the cycle, the Supplemental Budget includes a recommended CIP Budget Alignment to ensure funding is consistent with current project scopes, construction schedules, and delivery capacity.
The recommendations also reflect projects progressing from planning into design and construction phases, where implementation requirements and cost estimates are now more clearly defined.
Major Completed and Ongoing Projects Significant progress has been made during the first year of the Financial Plan, including completion of the Cultural Arts District Parking Structure, 2025 Roadway Paving Project, Water Resource Recovery Facility, and Mid-Higuera Bypass Project, as well as substantial progress on the Mission Plaza Enhancement Project and continued design of the Prado Bridge Widening and Prado Interchange Projects.
In the first year of the Financial Plan, staff completed 13 projects and brought 12 projects into construction. The following provides more detailed progress information on several upcoming capital projects.
Higuera Complete Streets
The Higuera Complete Streets Project was advertised for construction bids in spring of 2026, with a pending bid opening date scheduled for early June. Assuming responsive bids are received within current project funding limits, construction start is targeted for late summer 2026. Construction is anticipated to take approximately 12 months, including procurement lead times for long-lead equipment such as traffic signal poles. Staff are currently refining a project communications plan that will involve proactive communications to the community and key stakeholders, such as emergency services providers and local businesses located within the project vicinity, prior to and during construction. 48
2 California and Taft Roundabout
The California and Taft Roundabout project is continuing to progress through the eminent domain legal process to acquire the right-of-way needed to construct the project. Final review of project plans and specifications is currently underway, and staff expect to have the legal rights to proceed with construction of the project as soon as fall 2026. Current plans are to advertise the project for construction bids fall of 2026, with construction targeted to start March 2027 and continue for approximately 8 months. The March start date avoids winter weather impacts and results in most construction activities occurring over the spring and summer months when traffic impacts will be reduced due to Cal Poly being out of session for the summer.
Updated construction cost estimates indicate the California and Taft Roundabout Project requires approximately $2.5 million in additional funding to fully fund construction. Staff have identified unreserved Transportation Impact Fee funding for appropriation, as well as Completed Projects funding available to transfer to this project. Approximately 90% of the additional funding request is proposed from Transportation Impact Fee (TIF) sources, with the remaining balance funded through transfers from completed Local Revenue Measure-funded projects and newly appropriated Capital Outlay Funds. The table below provides a summary of the requested funding appropriations and transfers, which are further shown within the CIP Budget Alignment subsection.
California and Taft Supplemental Funding
California & Taft Funding Additional Funding
2091503-00 - California & Taft Roundabout $2,500,000
New Appropriation $2,014,659
Local Revenue Measure (Capital Outlay 401) $150,000
SLR Transportation Development Impact Fee (514) $502,951 Transportation Impact Fee (Transportation Impact Fee 507) $1,361,708 Transfer (from Completed Projects) $485,341
Local Revenue Measure (Capital Outlay 401) $143,306
Transportation Impact Fee (Transportation Impact Fee 507) $342,035 California & Taft Funding
Previous
Allocation/Approved
Remaining Budget (Current Balance) $431,398
Local Revenue Measure (Capital Outlay 401) $85,274
SLR Transportation Development Impact Fee (514) $346,124 2025-2027 Financial Plan Year 2 Appropriation $3,650,000 Local Revenue Measure (Capital Outlay 401) $2,250,000
SLR Transportation development Impact Fee (514) $1,400,000 Grand Total (Previous and New) $6,581,398
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3 Prado Road Interchange
The Prado Road Interchange Project in San Luis Obispo is a legacy Capital Improvement Project that plays a crucial role in the City's infrastructure development. This project will construct a bridge over US 101, connecting Prado Road to Dalidio Drive and establishing a continuous transportation link between S.
Higuera Street and Madonna Road. The project aligns with major City goals such as Housing and Homelessness, Climate Action, Open Space, and Sustainable Transportation, and has been long-identified as a necessary circulation improvement in the City’s General Plan.
On November 4, 2025, Council provided direction regarding the value analysis items to be incorporated into the Plans, Specifications, and Estimates (PS&E) phase of the project. Council’s direction initiated the process of incorporating the approved value analysis recommendations into the project design, including completion of the technical studies, updated traffic and operational analyses, permitting coordination, and engineering refinements necessary to advance the project into the PS&E phase.
This work forms the foundation of the Supplemental Project Report (SPR), which is required by Caltrans to document the proposed changes and secure concurrence prior to proceeding further in design. On March 11, 2026, a community meeting was held at the Pavilion at San Luis Ranch to inform the public about the project in plain language and provide an opportunity for questions and feedback. The community’s feedback on the project and the SPR will be presented to the Active Transportation Committee (ATC) on May 20, 2026, for review and consideration of any recommendations the ATC may wish Council to consider. The SPR is currently scheduled to return to Council on August 4, 2026, for consideration and approval prior to formal submittal to Caltrans. The table below presents key upcoming project milestones.
Prado Interchange Milestone Tracker
Milestone Status Tracker Status Target Completion Date
PHASE I: Value Analysis In Progress August 2026
PHASE II: PS&E Development Pending May 2029
PHASE III: Bid, Advertisement, & Award Pending August 2029 PHASE IV: Construction Pending August 2031
Prado Creek Bridge
The current bridge over San Luis Obispo Creek at Prado Road is functionally obsolete, structurally deficient, and cannot accommodate the City’s multi-modal needs. This project proposes to replace the bridge with a wider bridge while protecting San Luis Obispo Creek banks from erosion. Additionally, the intersection at Prado and South Higuera will be widened with protective features for bicycles and pedestrians to operate in conjunction with the widened bridge. The project includes undergrounding of all overhead utilities in the area to provide a more aesthetic and resilient corridor.
The consultant team is advancing the project toward completion of the 95% contract documents while continuing right-of-way acquisition, utility coordination, and updates to off-site mitigation plans and permits. Of the six properties required for the project, two are currently in the process of executing agreements with the City. Three additional property owners are working with staff on the details of the acquisition offers, and one property has not yet been formally contacted regarding an offer. 50
4 Additionally, a Value Analysis effort completed in April identified potential opportunities to reduce project costs, streamline construction duration, and minimize anticipated public impacts. Staff will seek feedback from the ATC in May and return to Council on August 4th for consideration and direction on the findings of the Value Analysis. The Council report will outline each item under consideration, including the associated advantages and disadvantages, the estimated increase in design cost and decrease in construction costs achieved to implement the alternative, and potential schedule impacts.
CIP Budget Alignment for FY 2026-27
Funding Needs
Leading up to the Budget Supplement, City staff reviewed project progress, delivery schedules, and current design fee and construction cost estimates for all active projects. This section outlines the recommended budget adjustments necessary to align the FY 2026-27 budget with available staffing resources and anticipated delivery timelines for the coming fiscal year. The overall intent is to maintain momentum on active projects by realigning budgetary resources with project delivery expectations and funding needsfor FY 2026-27. The tables below identify projects advancing through design and/or nearing construction and the additional funding required to move each project forward should Council wish to complete the projects within the current financial plan.
Recommended supplemental appropriations generally fall into four categories:
• Projects advancing from planning into final design or construction, where updated cost estimates are now available;
• Critical infrastructure replacements needed sooner than originally anticipated due to asset condition or operational risk;
• Grant- or reimbursement-supported projects requiring matching appropriations; and • Strategic reallocations intended to align budget authority with realistic project delivery schedules.
New Appropriations / De-appropriations By Fund
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5 New Capital Appropriations
Water Fund
Water Distribution Fleet Replacements: $305,874
The proposed fleet adjustments for Project 2000521-Fleet Replacements are proposed to reallocate existing resources to better align with operational priorities. These changes result in no net increase in total vehicles, while introducing one new Emergency Response Trailer to enhance field response capabilities. The revised configuration increases the FY 2026–27 budget by $305,874, which is substantially offset by planned reductions in future fiscal years, resulting in a net cumulative impact of approximately $81,000.
These adjustments prioritize higher-value, mission-critical equipment while deferring or removing lowerpriority replacements. Collectively, this refined fleet composition better supports core Water Distribution operations, including fire hydrant flushing, valve turning, and emergency activities, while also improving crew visibility and safety and reducing traffic disruption during field operations.
Proposed Fleet Changes:
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6 • Valve Turning Truck (Water Distribution): +$155,874 (FY 2026–27) • Emergency Response Trailer (Water Distribution): +$50,000 (FY 2026–27) • Vactor Truck (Water Distribution): +$650,000 (FY 2026–27) • Dump Truck – Water Fund Purchase from Sewer Fund: +$50,000 (FY 2026–27) • Service Body Truck (Unit 0846): –$600,000 (FY 2026–27; removed) (Water fund De-appropriation) • Standby Truck (Unit 1629): –$75,000 (Forecasted FY 2027–28; removed) • Service Body Truck (Unit 0847): –$150,000 (Forecasted FY 2027–28; reduced) Overall, the proposal reflects a strategic reallocation of fleet resources—maintaining fleet size while improving functionality, safety, and alignment with operational needs.
Tank Safety Retrofits: $270,000
The proposed adjustments for Project 2000034-Water Storage Tank Maintenance support the continued reliability, safety, and regulatory compliance of the City’s potable water storage system. Water storage tanks are critical infrastructure that ensure adequate system pressure, emergency reserves, and operational flexibility. Many of these assets have been in service for decades, and ongoing maintenance is necessary to extend their useful life and maintain compliance with State and Federal standards. The proposed work builds on prior condition assessments and prioritization efforts to address corrosion, aging components, and safety risks across multiple facilities.
In addition to previously identified maintenance needs (e.g., coatings, structural repairs, and component replacements at Wash Water Tank No. 1, Reservoir 2, and Edna Tank), the current proposal includes targeted safety upgrades to bring older facilities into compliance with modern workplace safety standards. These improvements reduce operational risk and support safe access for inspection and maintenance activities. These proposed changes are necessary safety improvements, and:
• Include upgrades to ladders, platforms, and fall protection systems to meet current Cal/OSHA requirements; and
• Improves worker safety, reduces liability, and ensures compliance with applicable safety regulations.
Overall, the proposed investment reflects a proactive approach to maintaining critical water infrastructure—extending asset life, reducing the likelihood of costly failures, and ensuring safe and compliant operations.
Arc Flash Survey: $165,000
The proposed adjustments for Project 2000542—Water Treatment Plant (WTP) Major Facility Maintenance support the continued reliability, safety, and regulatory compliance of critical treatment infrastructure. The WTP relies on a wide range of mechanical, electrical, and treatment systems to consistently deliver potable water that meets State and Federal standards. Ongoing maintenance and condition-based improvements are necessary to extend asset life, reduce the risk of unplanned failures, and ensure uninterrupted operations. This project includes a variety of maintenance activities such as repairs to pipelines and treatment units, electrical system upgrades, and condition assessments to inform long-term asset management planning.
53
7 A key component of the proposed work is the completion of an arc-flash electrical study of the WTP and associated water distribution infrastructure, which is essential for maintaining a safe working environment and meeting regulatory requirements. Electrical systems at the WTP and across the Water Distribution system involve high-voltage equipment that can pose significant hazards if not properly maintained. Overall, these proposed changes:
• Evaluate electrical systems to identify and quantify arc-flash hazards; • Support compliance with NFPA 70E and OSHA (29 CFR §1910.269) requirements; • Establish appropriate safety labeling, Personal Protection Equipment (PPE) requirements, and safe working distances; and
• Reduce the risk of serious injury to staff and contractors and improve overall electrical safety protocols.
Overall, this investment reflects a proactive and compliance-driven approach to facility maintenance— prioritizing worker safety, reducing operational risk, and ensuring the continued ability to reliably and safely deliver treated water to the community, and maintain compliance with regulatory requirements.
Sewer Fund
Wastewater Collection System Infrastructure Renewal Strategy: $66,209 The proposed adjustment for Project 2001023—Infrastructure Renewal Strategy supports the completion of a critical planning tool for the City’s wastewater collection system. This project develops and refines a system-wide hydraulic model used to evaluate pipe capacity under existing and future flow conditions.
The model integrates data from new development, flow monitoring, and system performance to identify constraints, prioritize capital improvements, and inform long-term infrastructure planning. This work is particularly important for accommodating future growth, including infill development, hospital expansion, and university-related projects, while maintaining system reliability and regulatory compliance.
Staff have identified opportunities to enhance the model’s accuracy and reliability through additional analysis and real-world calibration. These refinements strengthen the technical foundation for capital planning, policy decisions, and development review. Overall, these proposed changes:
• Fund additional modeling, system recalibration using observed flow data, and refined capacity analysis;
• Improve accuracy of projections for existing conditions and future demand scenarios; and • Support more informed decision-making for capital investments, development review, and system planning.
Overall, this adjustment reflects a targeted investment to ensure the City’s wastewater modeling tool is technically robust and decision-ready, reducing long-term planning risk and supporting efficient, datadriven infrastructure investment.
Water Resource Recovery Facility (WRRF) Security Fencing: $87,000 The proposed adjustment for Project 2000077—WRRF Asset Replacement supports the continued functionality, safety, and longevity of critical support facilities at the WRRF. While the wastewater treatment plant itself has undergone multiple upgrades, key ancillary assets —including the laboratory, 54
8 operations, and administration facilities—have not been significantly modernized since their original construction. This project provides targeted investments to maintain and extend the useful life of these assets, including laboratory processing ventilation, security lighting, and building security.
A key component of this effort is the replacement of deteriorated perimeter fencing to address ongoing security concerns and protect critical infrastructure. These proposed changes:
• Replace deteriorated fencing along the east side of the WRRF, which has experienced repeated unlawful break-ins;
• Install welded wire fencing consistent with improvements on the north and planned south sides of the facility;
• Enhance resistance to climbing and cutting, improving site security and reducing unauthorized access; and
• Supports a uniform perimeter standard while reducing ongoing maintenance and incident response costs.
This investment reflects a practical and preventative approach to facility maintenance—improving security, protecting public infrastructure and staff, and reducing long-term operational risk.
Zone 9
Silt Removal: $80,000
San Luis Obispo Creek, between Santa Rosa and Marsh Street bridges, has experienced bank erosion over the course of many wet seasons. This erosion has been observed adjacent to the Santa Rosa Street bridge abutments as well as nearby retaining walls that protect private property, including the dialysis clinic.
Additionally, previous generations of creek bank armoring have failed and are now constricting the creek in this area, reducing storm flow capacity.
This new project, funded through the County Zone 9 Advisory Committee, proposes to armor the creek banks and protect the nearby bridges and properties from scour while increasing channel capacity and establishing a healthy creek corridor supportive of riparian species. This funding augments the City’s existing Silt Removal project budget, which is utilized for removing silt accumulations within San Luis Obispo Creek and its tributaries, and is important work to ensure creek capacity is maintained.
Mid-Higuera Bypass: $75,000
Construction of the Mid-Higuera Bypass project was completed in March 2026. Plant-establishment and maintenance work is a required component of the project’s environmental permits, and the City has an active 3-year plant establishment contract in place to ensure compliance. Due to the duration of the maintenance work, the County Zone 9 Advisory body approved a request for an additional $75,000 to provide contingency funds that may be necessary to address potential scope changes resulting from pending amendments to the City’s Lake and Streambed Alteration Agreement with the California Department of Fish and Wildlife for the project. These amendments may affect tree mitigation ratios including increased tree mitigation plantings, associated irrigation and maintenance, and ongoing erosion control needs that may arise over the next few years.
New Initiative: Waterway Management Plan Update: $130,000 55
9 The requested funding supports environmental permitting and updated creek and bridge survey data necessary to advance vegetation management planning and future hydraulic modeling efforts in both City and County jurisdictions.
The City of San Luis Obispo, in support of the approved Reimbursement Agreement for work in County areas, received $30,000 in County Zone 9 funds to contract with an environmental consultant for permitting services in County jurisdictional areas for vegetation management. This effort will dovetail with existing City led efforts for vegetation management and permitting within City limits and support a larger vegetation management effort in priority areas. The East Fork of San Luis Obispo Creek, in the San Luis Obispo County jurisdictional area, is the focus for this initial effort and is not currently addressed in the WMP.
Additionally, the City of San Luis Obispo is looking to have updated survey information on the bridges spanning San Luis Obispo and Stenner Creeks into and through City limits. This effort will provide new baseline information supporting the new hydraulic model currently under development and being scoped out by County staff. The City received $100,000 in County Zone 9 funds for this effort, which will complement the survey information completed for the Mid-Higuera Bypass.
No local funds are proposed for appropriation for this work and this project is entirely funded by County Zone 9 funds in an effort to support ongoing creek watershed enhancements and maintenance.
Transit Fund (State and Federal Grant)
Downtown Transit Center Rehabilitation
The existing Downtown Transit Center was constructed in 2002 and lacks the capacity to serve the existing and proposed bus routes that service this stop. This project will add an additional two bus bays, either along Osos Street, Palm Street, Mill Street or some combination thereof. The site will also receive additional security cameras, wayfinding signage and ADA improvements. Design is underway, and additional funding is requested based on updated and better-defined design cost estimates that reflect the complexity of the project.
Transportation Impact Fees
See “Transportation Impact Fee Reconciliation” subsection and summary on California/Taft funding for specific information on appropriations from the Transportation Impact Fee. 56
10 Supplemental Reallocations By Fund:
Project Budget Reallocations
CIP reallocations refer to adjustments of planned funding identified in year two of the 2025-27 Financial Plan to align resources with current project schedules, scopes, and delivery needs. These changes do not reduce previously appropriated funding.
Capital Outlay Funds (Including LRM)
Police Building 1042 - Tenant Improvements, HVAC and Hydronic System The reallocation of $2,415,000 from Year 2 of the financial plan for the 1042 Walnut project is intended to better align budget with the anticipated project delivery schedule. This adjustment does not change the timeline of the project or reprioritize its delivery in any way. Staff are actively working on and prioritizing the Police Department Tenant Improvement project within the Capital Improvement Program, and have recently completed selection of the design consultant that will lead development of the project plans, specifications, and estimates, including a design kickoff meeting with Public Works and Police Department Staff. Given the age and complexity of the existing facility, staff are taking a deliberate design approach to ensure full alignment between the Architect, Public Works, and the Police Department prior 57
11 to bidding. This approach is intended to reduce risk and avoid costly changes during construction that could otherwise extend the construction timeline and lengthen the period of Police staff displacement.
This budget adjustment does not eliminate all project funding, rather it reduces Year 2 programmed funding from $4.31 million to $1.895 million, reflecting updated cash flow assumptions based on the current project delivery schedule. The remaining Year 2 funding is sufficient to support continued design and early project development activities.
The proposed reallocation of $2.415 million will be reprogrammed into Year 3 of the CIP, consistent with the 10-year CIP framework, and will be further refined through the 2027–2029 Financial Plan update as design advances and more detailed cost estimates are developed. 2090742-01 - Drainage Infrastructure Replacement: $485,000 Staff are currently advancing the design of several projects to address failed and aging storm drain infrastructure. These efforts include replacement of a storm drain crossing at Olive Street, as well as improvements at the intersections of Skyline Boulevard and Clover Street, and Rafael and Luneta Streets.
Collectively, these projects are critical to maintaining system reliability and reducing the risk of localized flooding and infrastructure failure.
In addition to these standalone projects, storm drain infrastructure is routinely evaluated and replaced as part of larger paving and roadway improvement efforts. To ensure continued progress on both dedicated drainage projects and opportunistic replacements coordinated with other capital improvements, staff requests additional funding to support design and construction activities. The recommended funding allocation will provides sufficient budget to continue with construction on planned current storm drain replacement projects.
2000054-01 - Righetti Community Park - Play Structure and Fields The Righetti Community park started construction after the Groundbreaking Ceremony in March of this year, with excavation and utility connections currently underway. As part of ongoing coordination with the contractor and City team, staff evaluated the implications of constructing a future pedestrian bridge during later phases of the project.
The bridge is required to support planned future amenities, including additional park improvements on the opposite side of the creek including basketball courts and tennis courts. While the full bridge is not included in the current phase, its abutments are located in close proximity to the planned play structure area. Constructing these elements at a later date would likely result in temporary park closures, disruption, and removal and replacement of adjacent hardscape and other impacted improvements.
Earlier this year, Council appropriated additional funding to support expanded project elements, including the pickleball courts and bike pump track. The pump track component already includes a pedestrian bridge, which will be constructed as part of the current phase.
To minimize future impacts and improve overall project efficiency, this adjustment allocates funding to construct the abutments for the future pedestrian bridge as part of the current work. Advancing this portion of the project now allows for more efficient use of available funds, helps mitigate the effects of construction cost escalation, and avoids potential disruption to park amenities once they are in use. 58
12 Constructing the abutments during the current phase avoids future demolition of newly completed park improvements and significantly reduces long-term construction costs and operational disruption. 2000069-00 - Pedestrian Crossing Improvements: $250,000 The City has experienced ongoing reliability and maintenance issues with the existing in-road flashing pedestrian crosswalk systems in the downtown area. There are currently three installations: one crossing on Marsh Street near the Downtown Centre, and two crossings on Higuera Street—one between Morro and Chorro Streets and another at Garden Street. The existing systems frequently malfunction and require regular troubleshooting and parts replacement by City maintenance staff. In 2025, the in-road flasher system at Higuera Street and Garden Street failed completely, requiring the installation of a temporary solar-powered replacement as an emergency repair.
The purpose of this project is to fund replacement of these existing unreliable in-road flashing crosswalk systems with new systems (Rectangular Rapid Flashing Beacons) that are more reliable, require less maintenance, and are generally more effective at increasing visibility of pedestrians crossing these streets.
In addition to replacing these three existing flashing crosswalk systems, this project scope also includes the proposed installation of pedestrian signal at the three downtown intersections that currently lack any pedestrian equipment (Higuera/Morro, Marsh/Morro, Chorro/Palm)—these improvements align with strategies identified in the City’s Active Transportation Plan, Vision Zero Action Plan, and support current Major City Goals for Infrastructure and Sustainable Transportation. Design for this project is substantially complete—this reallocation of funds to this project would support construction of these pedestrian crossing improvements.
2000033-01 - Devaul Ranch Playground: $100,000
Devaul Park’s playground equipment has exceeded its useful life and requires replacement. This project will remove and replace the existing playground and upgrade the surrounding concrete pathways to ensure compliance with ADA accessibility standards.
Staff has advanced the design of the playground replacement; however, updated cost estimates indicate a funding shortfall. To proceed with construction and deliver the project as planned, staff is requesting additional funding.
2000508-00 - City Hall Drought Tolerant Landscaping and Restroom: $75,000 This project funds the installation of drought-tolerant landscaping at City Hall and the installation of a prefabricated restroom at the Transit Center. The conversion to drought tolerant landscape will allow the City to remain in compliance with State regulations related to Non-Functional Turf. The restroom component is being advanced as a standalone project, separate from the Downtown Transit Center project, to expedite delivery and address an immediate facility need.
Design is currently underway, and preliminary cost estimates indicate that additional funding is required.
Specifically, increased costs are associated with additional concrete work needed to meet ADA accessibility requirements for the restroom facility, including compliant paths of travel and site grading adjustments. This additional funding is requested to ensure the project is fully funded for construction and can proceed without delay.
2000075-19.01 - Dispatch HVAC Replacement: $60,000
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13 The HVAC units for the Emergency Communications Center are original and coming to the end of their useful life. These units serve the dispatcher area and are operational 24/7. Funding was included in the 2027-28 fiscal year to replace the units; however, the units have had increased mechanical failures and are at risk for a catastrophic failure prior to the original project date. Advancing the funding by one year to replace the HVAC units will help ensure the Emergency Communications Center heating and cooling remains functional. The new units will also be fully electric and will replace gas-fired heating equipment. 2000601-13.1 - Public Safety POD Cameras Skate and Sinsheimer Park: $30,000 This project provides funding for the replacement of outdated and non-operational security cameras at the Santa Rosa Skate Park and Sinsheimer Park. The existing cameras at both locations are legacy PODstyle units that have reached the end of their useful life. They are currently unreliable and produce significantly degraded image quality, limiting their effectiveness for security and incident documentation purposes.
Both camera systems were originally installed as part of prior park improvement projects and have not been upgraded since that time. Due to ongoing performance issues and obsolescence, full replacement is necessary to restore reliable surveillance coverage. The proposed improvement includes installation of a single modern 4-way camera at each location. These systems provide substantially improved image quality and expanded coverage compared to the existing equipment. 2000078-00 – Ludwick Community Center Roof, Solar, Siding, and HVAC: $300,000 The Ludwick Community Center is an existing CIP project, with $2.5 million currently planned in FY 2027- 28 for construction. The project seeks to address several major building components that have exceeded their useful life, including the HVAC system, roofing system and associated rooftop solar, and exterior siding. These aging systems have led to increased operations and maintenance costs, reduced reliability, and a growing risk of service disruptions.
This work was originally anticipated to be completed as a series of maintenance projects led by Facilities staff; however, due to the complexity and interrelated nature of the building systems, it has become clear that a comprehensive, professionally designed approach is necessary. Furthermore, while the project is currently planned for construction in FY 2027-28, no funding was previously identified to support the design phase. Staff is requesting funding to initiate design and engage a multidisciplinary team of architects and engineers. Advancing design is critical to maintaining the overall project schedule and ensuring timely delivery of construction.
2000520-04.01 - Fleet Services (Corp Yard) Stationary Generator: $300,000 The City’s Corporation Yard serves as the Department Operations Center (DOC) in emergency events and requires a backup generator to ensure consistent power delivery during electrical grid outages. In addition to DOC operations, the site also houses the City’s fleet fuel tanks and pumps, which supplies fuel to most City assets, including the Police Department. The generator requires replacement due to its age, and staff is nearing completion of the design phase. Continuing into construction phase within FY 2026-27 will ensure the Corp Yard has a functional backup generator if any emergencies arise.
Final cost estimates indicate additional funding is needed to construct this project, primarily due to newer floodproofing and seismic requirements.
60
14 2000555-01 - City Hall Generator (GEN-9712): $25,000 City Hall possesses a small natural gas generator that is used to operate the City’s IT systems during power outages. This generator has reached the end of its useful life and is ready for replacement.
To meet ventilation requirements dictated by the current Building Code, part of the generator enclosure must be modified with louver doors and wider maintenance entrances. The project design is nearing completion and current cost estimates indicate that additional funding is necessary to fully fund construction with the added code compliant features. The proposed funding allocation is expected to fully fund the construction cost.
2000513-02 - Corporation Yard EV Charging Station: $240,000 The Corporation Yard EV Charger Project will install new electric vehicle charging infrastructure to support fleet electrification and reduce operational emissions. The project is currently funded through a combination of Local Revenue Measure (LRM) funds, the Sewer Fund, the Water Fund, previously allocated carryover funds, and external incentives including the 3CE rebate, the PG&E EV Fleet Rebate, and grant contributions from the Air Pollution Control District (APCD). While these sources substantially offset project costs, the current construction cost estimate exceeds available funding, and additional supplemental funding is requested to fully fund construction and maintain the planned delivery within the FY 2026-27 Fiscal Year.
2001002-01 - Sidewalk Replacement and Cleaning: $100,000 There is currently $250,000 programmed in FY 2026/27 for Sidewalk Replacements and Cleaning, which supports sidewalk accessibility improvement and ongoing maintenance. This additional funding will cover the cost of replacing sections of sidewalks damaged by City street trees at five separate locations, including an area directly adjacent to the crosswalk on Marsh Street by the Post Office. In addition to the sidewalk repairs, the funding will be used to replace an ADA curb ramp and increase the frequency of pressure washing downtown sidewalks during the summer months, when the Ficus trees are at peak berry-dropping, thereby helping to keep downtown safe and beautiful.
City - County Library Major Maintenance (91559): $150,000 In October 1989, a Joint Powers Agreement (JPA) was executed between the City and County of San Luis Obispo, which established the framework for joint operation of the San Luis Obispo City/County Library.
The JPA defines “major maintenance” as a one-time repair with a cost exceeding $44,000 and provides that such costs are to be shared equally between the City and County.
The Facilities Planning Division of the County Public Works Department completed a capital project in FY 2024–25 that meets this definition. The project included a remodel of the first-floor public restrooms to extend the useful life of the facility and achieve compliance with the Americans with Disabilities Act. The County’s final project cost was approximately $300,000, resulting in a City cost-share obligation of $150,000 in accordance with the JPA.
The County completed the work on behalf of the joint facility consistent with the terms of the JPA, and the City’s contribution is now required to satisfy the cost-sharing obligation. Funding is requested at this time to expedite reimbursement to the County for work that has already been completed. 61
15 Completed Projects Transfers By Fund:
2000029 - Bridge Maintenance: $69,286
This annual asset maintenance project provides funding for ongoing bridge maintenance projects. This specific budget transfer request will be utilized for replacement of damaged bridge railings at two locations: along the Railroad Safety Trail (RRST) near Sinsheimer Park, where a bridge railing was compromised due to fire damage, and at the Broad Street on-ramp to southbound US 101, where the railing was damaged by a vehicle collision. At both sites, the existing railings have sustained structural damage and no longer provide the intended level of safety for users. Timely replacement is necessary to restore safe conditions and maintain the functionality of these important transportation facilities. Work will include removal and disposal of the existing damaged railings, installation of new code-compliant bridge railing systems, and any necessary minor concrete repair or surface restoration associated with the replacements.
2000031 Parking Lot Maintenance (Parking Fund): $109,000 Funding transferred to this project will provide for maintenance of City-owned parking lots, specifically revenue generating Parking Fund lots1
. Many of these facilities are experiencing typical wear and tear such as cracking, surface deterioration, and faded or missing striping, which reduces functionality and overall safety. Deteriorated pavement can accelerate if not addressed in a timely manner, leading to more costly rehabilitation or full reconstruction. Faded striping diminishes visibility of parking stalls, accessible 1 https://www.slocity.org/government/department-directory/public-works/parking-services/parkingguide/parking-lots 62
16 spaces, and circulation patterns, creating confusion for users and potential compliance issues. This budget will provide the ability to perform crack sealing, localized asphalt repairs, seal coating as appropriate, and re-striping on an as-needed basis. Investing in routine maintenance helps preserve these revenuegenerating assets, improves user experience, and reduces long-term costs by preventing more significant deterioration.
Infrastructure Investment Fund and Capital Reserve Status The Infrastructure Investment Fund (IIF) was established with the primary goal of enabling the City to harness the advantages of well-planned growth, a process that often requires timely financial support for essential infrastructure. The fund's purpose extends to leveraging additional grant funding, providing loans, or directly participating in critical infrastructure projects that enhance quality of life and spur economic development. During FY 2025/27, $2 million in funding from the IIF was necessary to support the increase in estimated construction cost of the Higuera Complete Streets Project. Consistent with Council direction provided on February 7, 2026, the IIF was backfilled with Unassigned Fund Balance.
Furthermore, the Capital Reserve will backfill the IIF again on July 1st, and the FY 2026-27 budget appropriates $3.5 million in reserve to the Prado Bridge Widening Project. CIP Reserve balance will be $3,212,229 on July 1, 2026, reflecting the transfer of $787,771 to the IIF from the annual $4 million CIP Reserve appropriation.
Infrastructure Investment Fund Summary
63
17 Year 2 Budget Appropriations Table*
*Does not include transfers from completed projects, only reallocations and new appropriations ID Project FY 2026-27
Total Budget
1 CIP No. # - Infrastructure Investment Fund $787,771
Infrastructure Investment Fund
Local Revenue Measure (Infrastructure Invest CIP 405) $787,771 2 CIP No. #2000027 - Urban Forest Maintenance $400,000
2000027-00 - Urban Forest Maintenance
Local Revenue Measure (Capital Outlay 401) $400,000
3 CIP No. #2000030 - Laguna Lake Golf Course Maintenance $10,000 2000030-01 - Laguna Lake Golf Course Maintenance
Local Revenue Measure (Capital Outlay 401) $10,000
4 CIP No. #2000033 - Playground Equipment Replacement $100,000 2000033-01 - Devaul Ranch Playground
Local Revenue Measure (Capital Outlay 401) $100,000
5 CIP No. #2000034 - Tank Safety Retrofits $270,000
2000034-04 - Tank Safety Retrofits
Water Fund (601) $270,000
6 CIP No. #2000053 - Bus Wash Replacement $75,000
2000053-00 - Bus Wash Replacement
Transit Fund (621) $75,000
7 CIP No. #2000054 - Righetti Community Park $300,000
2000054-01 - Righetti Community Park - Play Structure and Fields Local Revenue Measure (Capital Outlay 401) $300,000
8 CIP No. #2000062 - Water Meters and Boxes $1,916,000
2000062-01 - Water Meter and Box (sewer fund contribution) Sewer Fund (602) $958,000
2000062-02 - Water Meter and Box (water fund contribution) Water Fund (601) $492,000
2000062-03 - Water Meters and Boxes - AMI Radio
Water Fund (601) $466,000
9 CIP No. #2000063 - Water Distribution Fire Hydrants $55,000 2000063-00 - Water Distribution Fire Hydrants
Water Fund (601) $55,000
10 CIP No. #2000066 - Big Belly Replacements $85,000
2000066-03 - Recycling-Solid Waste Big Belly in Downtown (15 locations per year)
Local Revenue Measure (Capital Outlay 401) $85,000
11 CIP No. #2000069 - Pedestrian Crossing Improvements $250,000 2000069-00 - Pedestrian Crossing Improvements
64
18 ID Project FY 2026-27
Total Budget
Local Revenue Measure (Capital Outlay 401) $250,000
12 CIP No. #2000073 - Vision Zero Program Implementation $250,000 2000073-00 - Vision Zero Program Implementation
Local Revenue Measure (Capital Outlay 401) $250,000
13 CIP No. #2000075 - Major Facility Maintenance $460,000 2000075-01.02 - IT Room Heat Pump Replacements (Annual Asset Maintenance)
Local Revenue Measure (Capital Outlay 401) $20,000
2000075-01.03 - City Hall Fire Alarm Fire Alarm Control Panel Local Revenue Measure (Capital Outlay 401) $115,000
2000075-03.10 - Swim Center Multipurpose Room flooring
Local Revenue Measure (Capital Outlay 401) $25,000
2000075-08.03 - Police Department Emergency Communications Center Workstation/Carpet Replacement
Local Revenue Measure (Capital Outlay 401) $50,000
2000075-12 - Parks and Recreation Roofing Siding and Exterior Painting Local Revenue Measure (Capital Outlay 401) $170,000
2000075-15.01 - Facility Roll Up Door Replacements - Various Locations Local Revenue Measure (Capital Outlay 401) $20,000
2000075-19.01 - Dispatch HVAC Replacement
Local Revenue Measure (Capital Outlay 401) $60,000
14 CIP No. #2000077 - WRRF - Asset Replacement $295,000 2000077-01 - Coating Maintenance
Sewer Fund (602) $25,000
2000077-02 - Headworks Grit Piping and Blowers
Sewer Fund (602) $250,000
2000077-08 - Cityworks Strategic Plan & Implementation
Sewer Fund (602) $20,000
15 CIP No. #2000078 - LCC Roof, Solar, Siding, and HVAC $300,000 2000078-00 - LCC Roof, Solar, Siding, and HVAC
Capital Outlay (Capital Outlay 401) $300,000
16 CIP No. #2000084 - Sewer Maintenance Cover Adjustments $30,000 2000084-00 - Sewer Maintenance Hole Cover Adjustments
Sewer Fund (602) $30,000
17 CIP No. #2000115 - Sinsheimer Park Playground Turf, Soft Surface Replacement
$50,000
2000115-00 - Sinsheimer Park Playground Turf, Soft Surface Replacement, and Hillside Turf (every 5 years)
Local Revenue Measure (Capital Outlay 401) $50,000
65
19 ID Project FY 2026-27
Total Budget
18 CIP No. #2000118 - Public Safety Center $200,000
2000118-01 - Public Safety Center Initial Scoping
Local Revenue Measure (Capital Outlay 401) $200,000
19 CIP No. #2000119 - Police Building - 1042 Tenant Improvements $1,895,000 2000119-01 - Police Building - 1042 TI
Capital Outlay (Capital Outlay 401) $1,895,000
20 CIP No. #2000150 - SGMA GSP $150,000
2000150-00 - SGMA GSP
Water Fund (601) $150,000
21 CIP No. #2000157 - Banner Arms, Bench Arms Rests, Signs $25,000 2000157-00 - Banner Arms, Bench Arm Rests, Signs
Local Revenue Measure (Capital Outlay 401) $25,000
22 CIP No. #2000198 - Silt Removal $150,000
2000198-03 - Silt Removal 2026
Zone 9 (Capital Outlay 401) $150,000
23 CIP No. #2000402 - Electric Buses and Associated Infrastructure $5,507,000 2000402-00 - 2 Battery Electric Buses and Associated Infrastructure State or Federal Grant (Transit 621) $5,507,000
24 CIP No. #2000405 - Refurbishment of SLO Transit Buses $1,000,000 2000405-00 - Refurbishment of SLO Transit Buses (Base)
State or Federal Grant (Transit 621) $1,000,000
25 CIP No. #2000406 - Senior Center Paint and Window $35,000 2000406-00 - Senior Center Paint and Window
Local Revenue Measure (Capital Outlay 401) $35,000
26 CIP No. #2000503 - Public Art Maintenance $210,000
2000503-05 - Public Art Coordination (ops)
Local Revenue Measure (Public Art Private Sector 207) $110,000 2000503-06 - Public Art Procurement
Local Revenue Measure (Public Art Private Sector 207) $100,000 27 CIP No. #2000506 - Bus Stop Improvements $90,000
2000506-00 - Bus Stop Improvements
State or Federal Grant (Transit 621) $90,000
28 CIP No. #2000508 - City Hall Drought Tolerant Landscaping and Restroom $75,000 2000508-00 - City Hall Drought Tolerant Landscaping and Restroom Local Revenue Measure (Capital Outlay 401) $75,000
29 CIP No. #2000510 - Public Art Installations $100,000 2000510-00 - Public Art Installations
Local Revenue Measure (Public Art Private Sector 207) $100,000 66
20 ID Project FY 2026-27
Total Budget
30 CIP No. #2000512 - Downtown Zig-Zig Lighting $20,000 2000512-00 - Downtown Zig-Zag Lighting
Local Revenue Measure (Capital Outlay 401) $20,000
31 CIP No. #2000513 - Electric Vehicle Charging Stations $670,000 2000513-02 - Corporation Yard EV Charging Station
Capital Outlay (Capital Outlay 401) $240,000
Local Revenue Measure (Capital Outlay 401) $240,000
Sewer Fund (602) $80,000
Water Fund (601) $80,000
2000513-04 - Various City Facilities EV Charging Stations Local Revenue Measure (Capital Outlay 401) $30,000
32 CIP No. #2000519 - Fleet Replacement: Parks and Rec $68,500 2000519-07.04 - Golf Course Truck (0819) EV
Local Revenue Measure (Capital Outlay 401) $68,500
33 CIP No. #2000520 - Fleet Replacement: Public Works $997,500 2000520-01 - Streets- Sweeper (1703) (no later than a year 3 purchase)EV Local Revenue Measure (Capital Outlay 401) $200,000
2000520-01.04 - Streets Maint Compact Pickup (0223) (GPR Truck) EV Local Revenue Measure (Capital Outlay 401) $80,000
2000520-02.05 - Parks Maint Turf Tender (0609)
Local Revenue Measure (Capital Outlay 401) $22,000
2000520-02.06 - Parks Maint Refuse Truck F450 (1015)
Local Revenue Measure (Capital Outlay 401) $80,000
2000520-02.07 - Parks Maintenance 3/4 ton Pickup (0832)(0903) EV Local Revenue Measure (Capital Outlay 401) $68,500
2000520-02.11 - Parks Maintenance Compact Pickup (0848) Hybrid/EV Local Revenue Measure (Capital Outlay 401) $38,500
2000520-03.02 - Facilities Maintenance 3/4 ton Pickup with Utility Bed (0829) EV
Local Revenue Measure (Capital Outlay 401) $75,000
2000520-04.01 - Fleet Services (Corp Yard) Stationary Generator Capital Outlay (Capital Outlay 401) $300,000
2000520-06.03 - Engineering Compact Pickup (0905)
Local Revenue Measure (Capital Outlay 401) $65,000
2000520-07.01 - Urban Forest Pickup (0852) EV
Local Revenue Measure (Capital Outlay 401) $68,500
34 CIP No. #2000521 - Fleet Replacements: Utilities $905,874 67
21 ID Project FY 2026-27
Total Budget
2000521-01.07 - Water Distribution Vactor Truck
Water Fund (601) $650,000
2000521-01.08 - Water Distribution Valve Turning Truck (New Task) Water Fund (601) $155,874
2000521-01.09 - Water Distribution Dump Truck (1516)
Water Fund (601) $50,000
2000521-01.10 - Water Distribution Emergency Response Trailer (New Task)
Water Fund (601) $50,000
35 CIP No. #2000527 - Point Repairs - Wastewater Collections System $240,000 2000527-00 - Point Repairs - Wastewater Collections System Sewer Fund (602) $240,000
36 CIP No. #2000529 - Recycled Water Orcutt Street - Fernwood to Laurel $1,900,000 2000529-00 - Recycled Water Orcutt Street - Fernwood to Laurel Water Fund (601) $1,900,000
37 CIP No. #2000531 - Recycled Water and Ultraviolet Disinfection Maintenance (602)
$10,000
2000531-00 - Recycled Water and Ultraviolet Disinfection Maintenance Water Fund (601) $10,000
38 CIP No. #2000537 - Transportation Monitoring & Modeling Update $55,000 2000537-00 - Transportation Monitoring & Modeling Update Local Revenue Measure (Capital Outlay 401) $55,000
39 CIP No. #2000542 - WTP Major Facility Maintenance $165,000 2000542-19 - Arc Flash Survey
Water Fund (601) $165,000
40 CIP No. #2000551 - WRRF Power Cogeneration Upgrade $1,475,000 2000551-00 - WRRF - Digester Flare Upgrade
Sewer Fund (602) $1,475,000
41 CIP No. #2000553 - Fleet Replacement: Police $437,000 2000553-01.01 - Patrol SUV (2 to 4 Vehicles)
Capital Outlay (Fleet Repl 402) $187,000
2000553-06 - Police Patrol Electric SUV (1 -2 Vehicles Per Year) EV Local Revenue Measure (Capital Outlay 401) $115,000
2000553-13 - Investigations Mini Van (1614) Hybrid
Local Revenue Measure (Capital Outlay 401) $70,000
2000553-17 - Investigations SUV (1535)
Local Revenue Measure (Capital Outlay 401) $65,000
42 CIP No. #2000554 - Fleet Replacement: Fire $675,000
2000554-02 - Patrol - Type VI Fire Engine
Local Revenue Measure (Capital Outlay 401) $350,000
68
22 ID Project FY 2026-27
Total Budget
2000554-09 - Station 5 Fire Apparatus
Local Revenue Measure (Capital Outlay 401) $300,000
2000554-10 - Cart Utility w/ Dump Bed (1802)
Capital Outlay (Fleet Repl 402) $25,000
43 CIP No. #2000555 - Fleet Replacement: Admin $25,000
2000555-01 - City Hall Generator (GEN-9712)
Capital Outlay (Capital Outlay 401) $25,000
44 CIP No. #2000568 - Golf Course Pro Shop - Flood Damage Repair $250,000 2000568-00 - Golf Course Pro Shop Flood Damage
Local Revenue Measure (Capital Outlay 401) $250,000
45 CIP No. #2000571 - Sewer-main Replacements: San Jose, Ramona, Monte Vista, and California
$310,000
2000571-00 - San Jose, Ramona, Monte Vista, and California Pipeline Replacement
Sewer Fund (602) $310,000
46 CIP No. #2000574 - Parking Pay Station Installation $500,000 2000574-00 - Parking Pay Station Installation
Parking Fund (611) $500,000
47 CIP No. #2000601 - Public Safety IT Replacements $427,867 2000601-02 - Audio Recording System Replacement
Capital Outlay (Info Tech Repl 403) $173,891
2000601-10 - PD Data Storage
Capital Outlay (Info Tech Repl 403) $57,066
Local Revenue Measure (Capital Outlay 401) $106,133
2000601-13 - Public Safety POD Cameras
Capital Outlay (Info Tech Repl 403) $60,777
2000601-13.1 - Public Safety POD Cameras Skate and Sinsheimer Park Local Revenue Measure (Info Tech Repl 403) $30,000
48 CIP No. #2000604 - Network IT Replacements $223,414
2000604-01 - City SAN
Capital Outlay (Info Tech Repl 403) $200,494
Parking Fund (611) $2,292
Sewer Fund (602) $9,168
Transit Fund (621) $2,292
Water Fund (601) $9,168
49 CIP No. #2000608 - Active Transportation Plan Implementation $200,000 2000608-01 - Bicycle Facility Improvements
Local Revenue Measure (Capital Outlay 401) $100,000
2000608-02 - Pedestrian Facility Improvements
69
23 ID Project FY 2026-27
Total Budget
State or Federal Grant (Capital Outlay 401) $100,000
50 CIP No. #2000611 - Fleet Replacement: Parking $50,000 2000611-01 - Mobility Services Pool Car (EV)
Transit Fund (621) $25,000
2000611-02 - Mobility Services Pool Car (EV)
Parking Fund (611) $25,000
51 CIP No. #2000617 - 2026 Paving Project $4,302,858
2000617-00 - 2026 Paving Project
211 - SB1 Road Repair $1,302,858
Local Revenue Measure (Capital Outlay 401) $3,000,000
52 CIP No. #2001002 - Sidewalk Maintenance $350,000
2001002-01 - Sidewalk Replacement and Cleaning
Capital Outlay (Capital Outlay 401) $100,000
Local Revenue Measure (Capital Outlay 401) $250,000
53 CIP No. #2001003 - Traffic Maintenance and Replacement $430,000 2001003-01- Traffic Signs & Striping Maintenance
Local Revenue Measure (Capital Outlay 401) $130,000
2001003-02 - Traffic Signal Asset Maintenance and Replacements (ADA) Local Revenue Measure (Capital Outlay 401) $200,000
2001003-03- No Parking Sign Installations
Local Revenue Measure (Capital Outlay 401) $100,000
54 CIP No. #2001004 - Water Distribution Utility Trench Repair $340,000 2001004-00 - Trench Repairs- Water
Water Fund (601) $340,000
55 CIP No. #2001005 - Water Valve Cover Adjustments $35,000 2001005-00 - Water Valve Cover Adjustments
Water Fund (601) $35,000
56 CIP No. #2001009 - Whale Rock Reservoir – Asset Replacement $20,000 2001009-02 - Reservoir Fencing
Whale Rock Fund (705) $20,000
57 CIP No. #2001010 - Parks Major Maintenance $575,000
2001010-07.02 - Mission Plaza Railing Upgrade
Local Revenue Measure (Capital Outlay 401) $35,000
2001010-10.02 - Parks Play Surfacing
Local Revenue Measure (Capital Outlay 401) $285,000
2001010-10.05 - Concrete Bench & Table Replacement Various Locations Local Revenue Measure (Capital Outlay 401) $15,000
2001010-13.02 - Irrigation Mainline Leak Repair
Local Revenue Measure (Capital Outlay 401) $50,000
2001010-13.03 - Landscape Controller System Upgrade to Calsense 70
24 ID Project FY 2026-27
Total Budget
Local Revenue Measure (Capital Outlay 401) $150,000
2001010-19 - Islay Park Flatwork Replacement
Local Revenue Measure (Capital Outlay 401) $40,000
58 CIP No. #2001011 - Open Space Maintenance $125,000
2001011-01 - General Open Space Maintenance
Local Revenue Measure (Capital Outlay 401) $75,000
2001011-02 - Open Space Fencing
Local Revenue Measure (Capital Outlay 401) $50,000
59 CIP No. #2001015 - Neighborhood Traffic Improvements $35,000 2001015-00 - Neighborhood Traffic Improvements
Local Revenue Measure (Capital Outlay 401) $35,000
60 CIP No. #2001016 - Street Lights $80,000
2001016-00 - Streetlights
Local Revenue Measure (Capital Outlay 401) $80,000
61 CIP No. #2001017 - Whale Rock Reservoir Transmission Pipeline Replacement
$960,000
2001017-00 - Transmission Pipeline Repairs
Whale Rock Fund (705) $960,000
62 CIP No. #2001023 - Infrastructure Renewal Strategy $66,209 2001023 - Infrastructure Renewal Strategy
Sewer Fund (602) $66,209
63 CIP No. #2001024 - Sewer Inflow and Infiltration Reduction $420,000 2001024-00 - Sewer Inflow and Infiltration Reduction
Sewer Fund (602) $420,000
64 CIP No. #2001025 - Sewer Utility Trench Repair $25,000 2001025-00 - Sewer Utility Trench Repair
Sewer Fund (602) $25,000
65 CIP No. #2001026 - WTP Major Maintenance $180,000
2001026-02 - Air Compressor and Dryer Maintenance
Water Fund (601) $7,000
2001026-03 - Chemical System Maintenance
Water Fund (601) $33,000
2001026-04 - Ozone System Maintenance
Water Fund (601) $140,000
66 CIP No. #2001032 - Pismo Street Retaining Wall (Storm Recovery) $1,900,000 2001032-01 - Pismo Street Retaining Wall Adjacent to Vista Grande Local Revenue Measure (Capital Outlay 401) $1,900,000
67 CIP No. #2001033 - Downtown Transit Center Rehabilitation $150,000 71
25 ID Project FY 2026-27
Total Budget
2001033-00 - Downtown Transit Center Rehabilitation
State or Federal Grant (Transit 621) $150,000
68 CIP No. #2001042 - Sewer-main Replacement: Chorro - Boysen to Rougeot $2,750,000 2001042-01 - Chorro - Boysen to Rougeot Sewer Pipeline Replacement Sewer Fund (602) $2,750,000
69 CIP No. #2001043 - Recycled Water Pump Station Maintenance $45,000 2001043-03 - RW Effluent Meter Replacement
Water Fund (601) $45,000
70 CIP No. #2001052 - Water Storage Tank Inspection and Cleaning $10,000 2001052-03 - Storage Tanks
Water Fund (601) $10,000
71 CIP No. #2001053 - Waterline Abandonment & Connections $50,000 2001053-00 - Waterline Abandonment & Connections
Water Fund (601) $50,000
72 CIP No. #2001055 - WRRF - Building Maintenance $87,000 2001055-03 Security Fencing
Sewer Fund (602) $87,000
73 CIP No. #2001057 - ATP - Foothill Boulevard Complete Street Project $200,000 2001057-00 - ATP - Higuera Complete Street Project
Local Revenue Measure (Capital Outlay 401) $200,000
74 CIP No. #2001063 - Broadband Plan $6,200,000
2001063-02 - Broadband Infrastructure
State or Federal Grant (Capital Outlay 401) $6,200,000
75 CIP No. #2001067 - Ramona Crossing Improvements $200,000 2001067-00 - Ramona Crossing Improvements
Local Revenue Measure (Capital Outlay 401) $200,000
76 CIP No. #2001071 - Storm Response and Recovery $2,183,315 2001071-02 - Mitigation Planting (Storm Response and Recovery) Local Revenue Measure (Capital Outlay 401) $1,583,315
2001071-06 - Laguna Lake Golf Course Repairs Bridge Replacement (Storm Response and Recovery)
Local Revenue Measure (Capital Outlay 401) $600,000
77 CIP No. #2001084 - Waterway Management Plan Update $130,000 2001084-01 - Waterway Management Plan Update: Topographic Surveys Zone 9 (Capital Outlay 401) $100,000
2001084-02 - Waterway Management Plan Update: Environmental and Topographic Surveys
Zone 9 (Capital Outlay 401) $30,000
78 CIP No. #2090649 - Mid-Higuera Bypass $75,000
72
26 ID Project FY 2026-27
Total Budget
2090649-00 - Mid-Higuera Bypass
Zone 9 (Capital Outlay 401) $75,000
79 CIP No. #2090742 - Storm Drains $1,235,000
2090742-01 - Drainage Infrastructure Replacement
Local Revenue Measure (Capital Outlay 401) $1,235,000
80 CIP No. #2091159 - City County Library Major Maintenance $150,000 2091159-00 City County Library Major Maintenance (91559) Capital Outlay (Capital Outlay 401) $150,000
81 CIP No. #2091252 - Prado Road Bridge Widening $3,500,000 2091252-00 - Prado Road Bridge & Road Widening
Capital Outlay (Infrastructure Invest CIP 405) $3,500,000 82 CIP No. #2091368 - T-3 Water Storage Tank Replacement - High Pressure Zone
$500,000
2091368-00 - Reservoir 2 Replacement
Water Fund (601) $500,000
83 CIP No. #2091503 - California & Taft Roundabout $5,514,659 2091503-00 - California & Taft Roundabout
Local Revenue Measure (Capital Outlay 401) $2,250,000
San Luis Ranch Transportation Fee (514) $1,400,000
SLR Transportation Develompent Impact Fee (514) $502,951 Transportation Impact Fee (Transportation Impact Fee 507) $1,361,708 84 CIP No. #2091633 - Corp Yard Storage Stalls $100,000 2091633-00 - Corp Yard Material Storage Stalls
Local Revenue Measure (Capital Outlay 401) $50,000
Sewer Fund (602) $25,000
Water Fund (601) $25,000
85 CIP No. #2091634 - Fire Station 1 Wash Area $150,000 2091634-00 - Fire Station 1 Vehicle Wash Area
Local Revenue Measure (Capital Outlay 401) $150,000
86 CIP No. #2091639 - Sewer Main Replacement: Chorro – Meinecke to Murray $260,000 2091639-00 - Sewer Main Replacement: Chorro – Meinecke to Murray Sewer Fund (602) $260,000
87 CIP No. #2091734 - Water Treatment Plant - Water Meter Replacement $82,000 2091734-03 - Salinas Water Meter
Water Fund (601) $50,000
2091734-04 - Effluent Meter Replacement
Water Fund (601) $32,000
88 CIP No. #2099837 - Open Space Acquisition $150,000
2099837-00 - Open Space Acquisition
Local Revenue Measure (Capital Outlay 401) $150,000
73
27 ID Project FY 2026-27
Total Budget
89 CIP No. #CIP Res - CIP Reserve $3,212,229
CIP Reserve
Local Revenue Measure (Capital Outlay 401) $3,212,229
Grand Total $61,454,196
74
Major City Goals
9. Major City Goals
The tables that follow detail the specific work programs by which the City makes progress against Council adopted Major City Goals from the 2025-27 Financial Plan. These tables also reflect changes in work programs since adoption of the Financial Plan and provide a brief justification for each change. 75
1 - Improve the local business environment, support Downtown vitality, and help businesses thrive a. Finalize a Community Work Force Agreement to support future construction work for the Prado Interchange and Public Safety Center projects. *Updated completion date to no later than FY 2027 Q4 to meet Prado Bid deadlines.
TBD
FY 2027 Q4*
b. Implement a Business Welcome program to support business attraction, retention and expansion efforts including start up checklists for the 17 most common business types. FY 2027 Q3 c. Create a disaster preparedness and resiliency guide for businesses and host an annual training. FY 2027 Q4 d. Work with partners to create a roadmap for the development of a potential conference facility in Downtown SLO. FY 2027 Q4
2 - Support the cultural arts, including the Cultural Arts District a. Complete the construction of the Mission Plaza Project to enhance the experience of the plaza and downtown. *Updated due to construction delays.
FY 2026 Q3
FY 2026 Q4*
b. Complete the construction of the Cultural Arts District Parking Structure. Complete c. Complete the update to the City's Historic Resources Inventory. Complete initial phase of the project updating the Historic Preservation Ordinance and Historic Context Statement (Phase 1) and complete the update of the Historic Resources Inventory (Phase 2).
Complete
FY 2027 Q4
d. Implement the City’s Lease and Grant Agreements with SLO REP to support construction of the new theater and a successful opening. FY 2027 Q4
e. Manage the tenanting and ongoing operations of a vendor in the Mission Plaza kiosk. FY 2027 Q4 3 - Support initiatives to assist the local workforce to develop the skills needed to secure quality jobs and local businesses and employers to attract and retain talent a. Work with CAPSLO and other non profits to provide grants to support new and expanded private childcare options and evaluate other approaches, e.g. permit streamlining, fee subsidies, if needed. FY 2027 Q4 b. Evaluate opportunities to partner with Cal Poly, SLCUSD, and County for employer-supported childcare programs.
FY 2027 Q4
c. Support the creation or expansion of coworking opportunities, such as the Hothouse, or other shared resource facilities to lower the barriers to entry for new businesses and provide opportunities for community members to build skills. *Completed with Council approval of the Grant agreement with Cal Poly for Center for Innovation and Entrepreneurship renovation on 9/2/25.
Complete*
d. Analyze and annually share relevant data and insights from the business retention and expansion program regarding labor needs with industry and workforce training partners. FY 2027 Q4 4 - Promote the City as an appealing community for people to live, work, visit, and invest a. Implement the approved brand strategy to continue to build awareness of San Luis Obispo as a destination and increase occupancy in hotels. FY 2027 Q4
b. Create a program to support business-led efforts to identify and promote business areas throughout the City. FY 2027 Q4 c. Conduct a study session with the City Council to explore innovative and alternative funding methods to address the needs of business areas throughout the City. Recommend removal as this is not currently a work effort for DSLO or any other organization.
FY 2027 Q3
Cultural Vitality, Economic Resilience, and Fiscal Sustainability Estimated
Completion
Date
76
5 - Balance operational needs and infrastructure investments with consideration of the long-term fiscal a. Develop and implement a long-term strategy to address the forecasted General Fund deficit in the 2027-29 Financial Plan period. FY 2026 Q4
b. Conduct an RFP process to evaluate banking service providers that will provide secure banking services at the best value to the City. Complete
c. Conduct an RFP process to identify a consultant to prepare the City's annual cost allocation plan to ensure that enterprise funds are appropriately reimbursing the General Fund for services provided to them. FY 2027 Q1 d. Complete an analysis of the City’s Business License and Tax program and conduct a Study Session to evaluate potential changes to the Municipal Code and administrative procedures to Refine the administration of the City's business license and business tax program to enhance consistency of communications and clarity around enforcement actions in order to maximize collection of business tax revenue.
FY 2027 Q3
e. Complete an analysis of the existing infrastructure financing program and develop a plan to implement improvements that enhance transparency and efficiency. FY 2027 Q4 f. Complete a fiscal analysis of the golf operations at the Laguna Lake Golf Course and conduct a Council Study Session to evaluate fiscal impacts, capital needs, and potential reuse options prior to major infrastructure investments.
Complete
g. Develop a strategic framework that connects existing strategic plans, incorporates the City’s mission and vision, and outlines core services to support a longer-term planning approach beyond the two-year Financial Plan.
FY 2027 Q4
Cultural Vitality, Economic Resilience, and Fiscal Sustainability (Continued)
77
1 - Increase access and belonging for all community members 1a. Provide an annual update and receive feedback on City DEI efforts at the Diversity Partners Network (DPN), which includes representatives from Cal Poly, Cuesta College, and other local organizations involved in the diversity, equity, and inclusion space.
FY 2027 Q4
1b. Conduct an annual Community Academy or Candidate Education Forum and increase application outreach, especially to underserved and underrepresented communities.
Complete
FY 2027 Q4
1c. Host at least two listening sessions with minority- and women-owned businesses (MWOBs) and other interested businesses to receive input on the tools they need, and any barriers to overcome, to be successful business owners in the community.
FY 2027 Q4
1d. Develop and distribute to the community and partners a brief annual report from the Office of DEI highlighting outcomes and results of DEI work.
FY 2026 Q4
FY 2027 Q4
1e. Complete the portion of the Broadband Plan funded through the Last Mile Federal Funding Account. FY 2027 Q2 2 - Facilitate programs and initiatives to support diverse community engagement and representation 2a. Implement a communications plan to provide education and information about the City's new Citywide Single Voting System. FY 2027 Q1
2b. Partner with local community partners Diversity Coalition's BIPOC Board Leadership Program to increase to expand pathways for underserved and underrepresented community members to participate in representation of underserved and underrepresented groups on City Advisory Bodies through a separate training/panel session in conjunction with the existing program outreach and education.
Complete
2c. Provide annual and on-demand training of the City's Public Engagement and Noticing Manual for applicable City employees, including updates to better reach underserved and underrepresented communities. FY 2027 Q4 2d. Develop and distribute a “how to” guide in Spanish and other languages on how to participate in public meetings and share public comment. * Updated due to additional time needed to also create corresponding webpage.
FY 2026 Q2
FY 2027 Q2*
2e. Incorporate a land acknowledgement into City Council meetings and advisory body meetings. *Updated due to ongoing conversations between regional tribes.
FY 2026 Q4
FY 2027 Q2*
Diversity, Equity, and Inclusion
Estimated
Completion
Date
78
Diversity, Equity, and Inclusion (continued)
3 - Operationalize inclusive practices in City processes and policies 3a. Create a Citywide Title VI Implementation Plan and other required documents. Complete 3b. Annually review four City policies and practices, as identified by City departments and the Office of DEI, to ensure inclusive language and processes. FY 2027 Q4
3c. Embed equity considerations into the City financial planning and budget process such as updating the Significant Operating Budget Change form. FY 2027 Q4
4 - Foster an inclusive organizational culture with equitable practices in recruiting, hiring, and retention 4a. Develop and implement equity and inclusivity training for staff of all levels (Directors, Managers, Staff, etc.). *Updated to reflect the final completion date of four workshops that are being developed, with two in FY 2026 and two in FY 2027. The first workshops are anticipated to begin in FY 2027.
FY 2026 Q4
FY 2027 Q4*
4b. Develop and implement a set of DEI-focused best practices in screening and interviewing processes, such as a blind application review. FY 2027 Q4
4c. Take the San Luis Obispo County Family-Friendly Workplace Assessment, work with interested employees to identify needs and implement any recommendations as feasible. FY 2027 Q4 4d. Integrate DEI competencies into performance evaluations for management level positions, which can include, but is not limited to, training, team development, and project implementation. FY 2027 Q4 4e. Annually review report out in Q3 on demographic data collected in NeoGov for City job applicants and identify targeted strategies to guide outreach, recruitment, and retention strategies. address potential equity gaps. The Council Compensation Committee will review data regarding advisory body members and make recommendations to Council in FY 2026 Q4. *Updated language and timeline to reflect revised approach.
FY 2026 Q3
FY 2026 Q4*
FY 2027 Q3
79
1 - Facilitate sustainable growth that aligns with climate, economic, and housing goals a. Organize a focus group to explore barriers to residential infill development—including specific discussions about the Downtown Core—and produce a memo to Council to help guide updates to the Zoning Regulations. *Updated due to staffing constraints.
FY 2027 Q2
FY 2027 Q3*
b. Conduct a study session Provide a Council Memo on the status of the City's growth management regulations. Complete c. Conduct a study session on implications and implementation of State Fire Hazard maps for local responsibility areas.
Complete
d. Implement actions and requirements of the State Fire Hazard Severity maps Ongoing 2 - Promote the expansion and diversification of housing opportunities for all a. Conduct an educational forum and improve the implementation of Below Market Rate (BMR) best practices to market and streamline the purchase and rental process for BMR units. *Updated due to staffing constraints.
FY 2027 Q1
FY 2027 Q3*
b. Create an informational handbook to assist the community in understanding state and local regulations for the development of ADUs and the creation of Urban Lot Splits and evaluate options for adopting pre-approved ADU plans.
Complete
c. Annually, or as needed for compliance, and by obtaining information from housing partners, complete updates to the Zoning Regulations to implement state law and to address identified barriers to affordable housing and housing production.
FY 2026 Q3
FY 2027 Q3
d. Work with SLOCOG to determine the City's RNHA allocation for the 7th Cycle Housing Element Update. FY 2027 Q4 e. Initiate an update to the 7th Cycle Housing Element through the creation of an RFP for consultant services, and present RFP to the City Council with a study session on potential scoping for Land Use and Circulation Element Update
FY 2027 Q4
3 - Ensure housing is safe, healthy, and affordable, while facilitating stronger protections for renters a. Conduct a study session with the City Council to identify needs and opportunities regarding renter protections, based on the memo produced in 2024, and receive direction on items for further consideration and development. Complete b. Conduct a study session with the City Council on potential Rental Housing Registry. This study session would discuss parameters of potential registry and discussion of resources needed for establishment and ongoing maintenance of registry.
Complete
c. Adopt and implement updated California Building Standards and local amendments (building code) Complete d. Create a strategic plan for the safe housing program, and conduct outreach and engagement with a focus on both tenants and landlords. FY 2027 Q2
4 - Foster diverse, connected, and safe neighborhoods that are livable for all a. Initiate an update to the Tree Regulations to streamline housing projects. Complete b. Conduct a study session with Council on Code Enforcement priorities related to safe/livable neighborhoods and receive feedback on priorities. Discuss potential updates to property maintenance standards. Complete c. Update property maintenance standards, if necessary, to ensure they align with City priorities related to safe and livable neighborhoods and housing. *Updated due to staffing constraints.
FY 2027 Q2
FY 2027 Q4*
d. Create a project plan and standard operating procedures for Community Development enforcement of zoning code regulations pertaining to Greek houses. Consider potential updates to zoning code to facilitate efficient regulation of Greek houses. *Updated to better align with study session (Task 4b).
FY 2026 Q3
FY 2027 Q1*
Housing and Neighborhood Livability – Healthy, Safe, and Affordable Estimated
Completion
Date
80
1 - Collaborate with partners to prevent and reduce homelessness a. Data - Support efforts to improve data access between City, County and service providers to more effectively facilitate connecting unhoused individuals to shelter and services. Identify data platform needs and develop implementation plans.
FY 2027 Q4
b. Prevention - Collaborate quarterly with SLO County and housing and homeless services providers to streamline resources to enable individuals and families to remain in housing. FY 2027 Q4 c. Homeless Services - Meet monthly with CAPSLO to support effectiveness of the 40 Prado Homeless Service Center, including updates to Good Neighbor Policy which will be presented to Council in Q2 of FY25-26. Complete d. Justice Services - Continue and expand collaborations between the City Attorney/City Prosecutor, SLOPD & SLO Fire (CAT/MCU/CSOs/LPTs), County Behavioral Health, and SLO Courts to coordinate criminal warrant and Municipal Code criminal misdemeanor prosecution efforts to enhance criminal diversion, social services, and specialty court connections, including mental health, drug and alcohol, veteran's support, CARE Court, conservatorship and housing and benefits services.
FY 2027 Q4 (&
Ongoing)
e. Regional Compact - Work with SLO County jurisdictions to develop and execute regional MOU to clearly outline jurisdictional responsibilities to prevent and address homelessness, create accountability measures, and ensure equitable resource allocations.
Complete
2 - Leverage external funding to expand crisis response and continuum of shelter and housing programs with regional partners
a. Homekey - Utilize State Homekey funding to implement Calle Joaquin Homekey project, providing 75 permanent supportive housing units which are scheduled to be fully occupied in Q1 of FY-25 the Fall of 2027. *Updated to reflect People's Self Help Housing Timeline. Phase II construction to begin in April 2026 and construction is tentatively scheduled to be complete in summer 2027.
FY 2026 Q1
FY 2027 Q4*
b. Encampment Resolution Funds - Complete outreach work as described in the City's Subrecipient Agreement with SLO County for implementation of the Welcome Home Village project to address encampments along the Bob Jones Bike Trail.
FY 2026 Q4
c. Other Funding Opportunities - Actively seek and vet additional funding sources to expand crisis response efforts and continuum of shelter programs in collaboration with regional partners. Report on any progress to Council in Q4 of FY26-27, unless grant applications are brought to Council for approval in advance of that timeline.
FY 2027 Q4
3 - Implement the Homelessness Response Strategic Plan (HRSP) a. Safe Parking - Facilitate implementation of the Rotating Overnight Safe Parking Pilot Program in partnership with CAPSLO and local faith community partners to expand safe parking capacity and address vehicular homelessness.
FY 2027 Q4
b. Hotel Voucher Program - Continue implementation of Hotel Voucher Program to provide expanded capacity at 40 Prado Homeless Services Center as the CAPSLO Family Shelter is developed at 46 Prado Rd. FY 2027 Q4 c. Feedback Sessions - Conduct feedback sessions with six key stakeholder groups to inform updates to the HRSP and address specific issues related to health, safety, and community well-being for each stakeholder group. FY 2027 Q3 d. HRSP Update - Update the HRSP for 2027-2031 in alignment with the Countywide Plan to Address Homelessness. FY 2027 Q4
Homelessness Response Estimated
Completion
Date
81
4 - Refine approaches to reduce the impacts of homelessness to balance safety, health, and community well-being
a. SLOPD CAT & CSO Teams - Continue/refine operation of a coordinated homelessness response including the Police Department's Community Action Team (CAT), Licensed Psychiatric Technician contracted through the County's Behavioral Health Department and a Community Service Officer (CSO). Identify potential funding sources to ensure sustainability of CAT and CSO positions the Licensed Psychiatric Technician Program.
FY 2027 Q4
b. SLOFD MCU Team - Continue/refine operations of the Fire Department's Mobile Crisis Unit (MCU), including integration of a Licensed Psychiatric Technician contracted through the County's Behavioral Health Department.
Identify potential funding sources to ensure sustainability of MCU positions.
FY 2027 Q4
c. Outreach & Coordination - Facilitate bi-weekly interdepartmental field team meetings and bi-weekly interagency outreach meetings to coordinate outreach, enforcement, and encampment cleanup efforts to reduce community-wide impacts of homelessness.
FY 2027 Q4
d. Ask SLO - Receive and respond to community member Ask SLO requests related to homelessness response and transient encampments to more efficiently address health and safety concerns. In response to Ask SLO requests, Homelessness Response staff will coordinate Field Team process for posting camps, conducting outreach, storing belongings, addressing cleanup needs, and tracking data in alignment with the City's CAMP Standards.
FY 2027 Q4
e. Environmental Mitigation - Coordinate efforts to mitigate environmental impacts and protect creek systems in collaboration with regional agencies including quarterly meetings with Caltrans, CHP, and SLO County. Develop and implement a Vegetation Management Plan.
FY 2027 Q4
Homelessness Response (Continued)
82
1 - Advance street safety improvements and support Vision Zero goals for all road users a. Start construction of the 2025 Arterials Paving project which could include streets such as Sacramento Dr, Tank Farm, and Calle Joaquin depending on available funding. Complete b. Start construction of the 2026 Roadway Sealing Project in Pavement Areas 2 & 3. FY 2027 Q1 c. Start construction of the South/King Signalized Crossing FY 2026 Q3 d. Start construction of the California/Taft Roundabout. *Updated due to legal timeframes for eminent domain process which must be completed prior to releasing the project for bids.
FY 2026 Q4
FY 2027 Q3*
2 - Continue implementation of the Active Transportation Plan, including expansion of multimodal transportation networks to improve connectivity, advocating for regional financial support as necessary. a. Start construction of the Higuera Complete Streets Project. *Updated due to time required to incorporate final design revisions based upon Council direction received in February 2026.
FY 2026 Q3
FY 2027 Q1*
b. Complete the South Broad St. Corridor Plan and initiate Demonstration Project. FY 2027 Q4 c. Complete public outreach and concept design for the Foothill Complete Streets project. *Updated due to staffing constraints.
FY 2026 Q4
FY 2027 Q3*
d. Promote the Roll and Stroll Education Campaign. Ongoing e. Bring final recommendation for Grand Avenue to Council to be implemented with the 2027 Paving Project. FY 2027 Q3 3 - Ensure public spaces, roads, and utilities support future growth and development a. Finalize the design plans for construction of the Prado Bridge Widening Project. FY 2027 Q4 b. Complete the WRRF Upgrade Project. Complete
c. Complete the Prado Interchange Final Value Engineering Report and Council Update. Complete d. Evaluate and implement EV firefighting tools and technology to protect waterways and infrastructure. FY 2026 Q4 e. In collaboration with Avila Ranch contractor, pursue design and construction of interim Fire Station 5 to achieve a projected opening date of 2028. FY 2029
4 - Build out park infrastructure to support community recreation and accessibility a. Start construction of Righetti Ranch Park (Phase 1). FY 2026 Q2 b. Start construction of Devaul Ranch Playground Replacement Project. *Updated because final design was paused to allow time to apply for a Parks and Recreation Grant, and amend the design if the grant is awarded.
FY 2026 Q3
FY 2027 Q3*
c. Advertise for construction bids for the Emerson Park Replacement Project. *Updated due to additional public input on the dog park component of the project which will require design modifications.
FY 2027 Q1
FY 2027 Q3*
5 - Support policies and programs aimed at expanding mass transportation and public transit a. Execute new SLO Transit Operations and Maintenance Agreement. FY 2026 Q2 b. Reinstate transit services to pre-pandemic levels. Complete c. Increase route frequency and reduce headways consistent with recommendations of the 2025 Short Range Transit Plan. FY 2027 Q4
d. Provide transit service to San Luis Ranch and Avila Ranch neighborhoods. FY 2027 Q4 e. Expand and promote the Downtown Access Pass (DAP) program. FY 2027 Q4 Infrastructure and Sustainable Transportation
Estimated
Completion
Date
83
1 - Continue implementation of the Climate Action Plan (CAP) and Lead by Example (LBE) Plan Work Programs
a. Adopt and implement updated energy reach codes (e.g., local amendments to the 2025 California Energy Code) (CAP) FY 2027 Q2
b. Work with CAPSLO to complete the Department of Energy Buildings Upgrade Prize pilot projects (installing energy efficiency upgrades in 10 low-income occupied manufactured homes) and report to Council on potential energy bill savings next steps (CAP)
FY 2027 Q2
c. Complete the 2027-2031 Climate Action Plan and GHG Inventory Update (CAP) FY 2027 Q3 d. Complete publicly accessible EV charging projects at various City property while continuing to develop policy and funding resources to expand access to EV charging infrastructure on public and private property (CAP) FY 2027 Q3 e. Convene a circular economy stakeholder forum to inform future circular economy actions (CAP) FY 2027 Q1 f. Partner with the Integrated Waste Management Authority (IWMA) to develop and distribute waste education materials to HOAs and property managers, with a focus on food waste diversion in high-turnover multi-family complexes and mobile home communities. (CAP)
FY 2027 Q4
g. Develop and adopt internal polices focused on zero emissions buildings, facilities, and vehicles (LBE) FY 2026 Q2 h. Complete investment grade audits for building electrification retrofits at Swim Center, City Hall, and Corporation Yard (LBE). *Updated due to contracting with PG&E taking longer than expected.
FY 2027 Q1
FY 2027 Q3*
i. Conduct a year-long campaign to connect employees to low emissions commute options (LBE) FY 2027 Q3 j. Install publicly accessible EV charging projects at the Cultural Arts District Parking Structure. Complete 2 - Implement disaster mitigation efforts to reduce risks from floods and fires a. Complete Construction of the Mid-Higuera Bypass Project Complete b. Complete the Vegetation Management Plan (VMP) FY 2027 Q2 c. Treat at least 25 acres of vegetative fuels in high wildfire risk areas of City creeks and Open Space FY 2027 Q4 d. Complete Waterway Management Plan, Volume 1 update FY 2027 Q4 3 - Strengthen community resilience through emergency preparedness, community networks, and planning efforts
a. Launch comprehensive community outreach and engagement opportunities on a quarterly basis that (i) provide general climate resilience and disaster preparedness resources, (ii) incorporate climate justice considerations in scheduling, location, and content, and (iii) support the projects described in MCG tasks 2b, 2c, and 2e Ongoing
b. Empower community organizations to host "pop-up" resilience hub events and support block and neighborhoodlevel preparedness efforts Ongoing c. Evaluate Community Emergency Response Team (CERT) / Listos program alternatives for community engagement and resiliency, and evaluate community receptivity to "Firewise" community designations FY 2027 Q4 d. Conduct a study session to consider options for funding stormwater and / or creek maintenance and flood preparedness in support of CASE programs. Removing this task is recommended at this time due to other potential funding measures on the ballot this fall and to avoid placing additional burden on the community. Other funding sources are available, such as Measure G20, which identifies stormwater improvements, creek maintenance, and flood preparedness as priority uses.
FY 2027 Q3*
Estimated
Completion
Date
Open Space, Climate Action, and Resilience
84
4 - Protect, sustain and advance open space and natural and historic resources a. Pursue priority land conservation opportunities to expand the Greenbelt, identify funding opportunities and resources, and engage with priority landowners on an annual basis Ongoing b. Complete Johnson Ranch Open Space Riparian Restoration Project FY 2027 Q3 c. Revive traditional ecological knowledge and cultural activities on City Open Space through annual engagement and dialogue with the leadership of local indigenous tribes FY 2027 Q4 d. Plant at least 125 native trees in Open Space through partnerships in furtherance of the "10 Tall" goal FY 2027 Q3 e. In partnership with Friends of La Loma Adobe, complete property boundary adjustment, initiate structural stabilization of the adobe, and complete trailhead connection as part of the Reservoir Canyon Natural Reserve FY 2027 Q4 5 - Expand trail connectivity and accessibility to support biking, hiking, and outdoor enjoyment for all community members
a. Implement Firefighter Trail realignment at Reservoir Canyon Natural Reserve FY 2027 Q4 b. Implement HiBar and Panorama Trail extensions at Miossi Open Space FY 2027 Q4 c. Initiate Morro View to Durata Vista Connector Trail at Irish Hills Natural Reserve FY 2027 Q4 d. Enhance accessibility for all through bilingual docent led hikes, Junior Ranger Camp, and environmental education FY 2027 Q4
e. Develop a sustainable trail strategy plan that incorporates passive recreation, public amenities, and equitable access, while ensuring natural resource protection FY 2027 Q3 Open Space, Climate Action, and Resilience (Continued)
85
Department Summary Administration and IT
Administration and IT Department
Department Summary
The City Administration and Information Technology Department oversees many of the daily operations of the City of San Luis Obispo, ensuring effective implementation of the City Council policies and programs.
As a lead department for several of the Council’s Major City Goals, it provides strategic leadership, policy guidance, and operational support to advance the City’s priorities.
Through the Office of the City Manager, the department plays a key role in public affairs and communications – promoting transparency, fostering community engagement, and representing San Luis Obispo’s interests at the regional, state, and federal levels. A major initiative in 2026-27 is completing the final phase of the City’s education and outreach plan to prepare the community for the transition to Citywide Single Vote in the November 2026 elections. Staff will also begin developing a long-term strategic plan as part of the 2027-29 Financial Planning process, as directed by the City Council.
The Office of Economic Development and Tourism drives local economic growth by supporting businesses and strengthening the economy through tourism and placemaking. In 2026-27, major efforts include launching and promoting the “SLO Grown Business Support” program and implementing the FY 2026-28 Strategic Marketing and Business Plan to increase demand for San Luis Obispo. This work includes updating partnership strategies and advancing the next phase of the SLO Life Coach brand campaign.
The Office of Diversity, Equity, and Inclusion works to make the City organization and community more inclusive. Key efforts include advancing the DEI Strategic Plan, continuing the Belonging Project with quarterly sessions, and launching Minority- and Women‑Owned Business listening sessions to inform more inclusive economic strategies. Internally, the Office is developing four equity-focused staff workshops to build skills and strengthen an inclusive workplace culture. Together, these efforts support both community engagement and internal capacity in alignment with the Strategic Plan.
The Office of Sustainability and Natural Resources leads key environmental efforts, including the Climate Action Program, Natural Resources, and Creeks and Watersheds. Current work focuses on implementing the Open Space, Climate Action, and Resiliency Major City Goal. Priorities include conserving the Greenbelt, advancing sustainable trail projects, providing environmental education, and updating the Climate Action Plan for 2027–2031. The City will also update its vegetation management plan, expand wildfire fuel reduction, improve flood protection, and update the Waterways Management Plan.
Together, these efforts strengthen open space protection, land and water management, and climate resilience.
The department also oversees the City Clerk’s Office, which ensures open government and public access to records. Alongside supporting the 2026 elections and the transition to Citywide Single Vote, a major initiative for the Clerk’s Office in FY 2026–27 will be implementing new policies and procedures to ensure full compliance with SB 707, a new transparency law taking effect July 1. The department also includes the City’s Information Technology division, which provides essential network infrastructure, technical support, and strategic IT planning. IT also leads the implementation of Oracle enhancements, ensuring continuous compliance, implementation of MOU provisions, and integration with evolving City business processes. The division is also involved in community-based projects, like the implementation of the City’s first Broadband Plan.
The department also includes the Assistant City Manager (ACM) position. In addition to supporting the 86
Department Summary Administration and IT
overall needs of the organization and the work of the City Manager, the ACM serves as the Community Services Group (CSG) administrator, overseeing the Directors of Public Works and Utilities, Community Development, and Parks and Recreation departments. The purpose of this CSG administrative position, which reports directly to the City Manager, is twofold: 1) focus on improving customer service, process/programmatic efficiencies, and collaboration within and between the CSG departments, and 2) enhance coordination between the CSG departments, Administration and IT and other City departments.
Departmental Budget
Staffing note: Development of the 2025-27 Financial Plan occurred in conjunction with labor negotiations with San Luis Obispo City Employees’ Association and the unrepresented bargaining groups. Contingencies for negotiated cost of living and benefits adjustments were included in a non-departmental cost center in FY 2025-26, leading to artificially high departmental staffing budget increases in FY 2026-27.
The Department’s budget also includes changes to appointed official compensation as approved by the City Council on May 5, 2026.
Changes from Financial Plan
Staff recommends $53,100 in budget changes for ongoing operating costs in FY 2026-27 to cover increased software costs, and County election costs, as well as $40,000 in one-time funding to pilot a statistically valid community survey to better understand community sentiment.
The Administration and IT budget includes $175,700 in reductions acrossstaffing, contract services, travel and training, and other operating expenditures. Key savings include modifying leases for tower space on Tassajara Peak through a co-location partnership with the County, reducing underutilized contract services and travel expenses, and right-sizing software licenses to align with approved employee counts.
Additional savings will be realized by eliminating a vacant 0.5 FTE Administrative Assistant position in the City Clerk’s Office. This position, approved by Council during FY 2021-22 to support hybrid public meetings, has remained vacant since its approval and the transition to hybrid meetings in July 2026 will be managed with existing resources. In addition, the department’s budget was reduced by $36,000 as the half‑time Administrative Assistant position previously assigned to support the Assistant City Manager is being reallocated to the Human Resources Department. Because the Assistant City Manager no longer requires dedicated administrative support, this half-time position can be better utilized by centralizing temporary recruitment functions within Human Resources. Additional details on this reorganization are provided in the Human Resources and Parks and Recreation department write‑ups.
Performance Measures
Actuals Budget Supplement
Administration & IT FY 2024-25 FY 2025-26 FY 2026-27
Staffing $ 6,868,995 $ 7,139,371 $ 7,648,071
YoY Change 2% 4% 7%
Other Operating Expenditures 4,696,196 4,180,267 3,985,129 YoY Change -3% -11% -5%
Total $ 11,565,191 $ 11,319,639 $ 11,633,200
YoY Change 0% -2% 3%
87
Department Summary Administration and IT
Objective: Provide public information to as many people in San Luis Obispo as possible.
Strategic Goal: Inform and engage the community
2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Notes: When users provide input on a topic via Open City Hall, they are asked how they liked using it. This measure allows staff to track how satisfied users are with the engagement tool itself.
Measure: Number of email subscribers 15,000 15,050 20,000 Notes:
Measure: Number of Pageviews on slocity.org 1,700,000 1,781,000 2,300,000 Notes: Changes in expected targets are due to elections (2025-26 is a non-election year, whereas 2026-27 is an election year)
Objective: Provide information and receive feedback to inform climate resilience activities through internal and external engagement events and opportunities.
Strategic Goal: Work toward the community and organization neutrality goals 2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Number of cross-departmental Green Team meetings 10 10 10 Notes: Implementation of the City’s Lead by Example Plan is coordinated through the Green Team function Measure: Number of community engagement events and opportunities 10 10 10 Notes: Community engagement events will focus on community wildfire preparedness and resilience, as well as the 2027- 2031 Climate Action Plan Update
Objective: Provide reliable IT resources to the organization and community.
Strategic Goal: Support the efficient and effective delivery of City services 2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Maintain City Network Reliability Uptime Status 99.9% 99.9% 99.9% Notes: This measures regular network uptime. Network uptime allows for the City to measure the percentage its systems are available to service department and public needs.
Measure: Data backed up in Terabytes 185 215 240
Notes: This measures the amount of data backed up by IT and informs the City’s storage needs forecasting The increase in data backed up in terabytes is attributed to the growth of digital evidence. Significant increases are anticipated to continue, and the 2026-27 target was adjusted accordingly.
Objective: Advance inclusion and belonging by growing staff capacity and improving access and engagement for all community members.
Strategic Goal: Create a more welcoming and inclusive organization and community 2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Staff Capacity 5 7 5
Notes: Number of Citywide workshops or related training for staff provided annually.
Measure: Community Engagement 14 33 16
88
Department Summary Administration and IT
Notes: Number of DEI-led or supported community efforts annually.
The higher than anticipated number of Community Engagement efforts reflects a significant increase in outreach capacity over the past year. With the expansion of the team to include two full-time staff members and support from student interns and College Corp Fellow, the Office has been able to be more consistently present in the community. This has included a deliberate effort to attend, support and participate in a wider range of community events and initiatives, strengthening connections and increasing access and belonging across the City.
Objective: Advance economic development and tourism efforts that contribute to the community’s quality of life.
Strategic Goal: Support business development and job creation 2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Business Welcome Program 17 19 19
Notes: Number of start-up checklists created as a part of the Business Welcome Program.
Measure: Business Contacts 85 160 95
Notes: Number of contacts with businesses regarding attraction, retention, or expansion in the City.
Expanded visibility of the Business Support Program, including the implementation of online appointment scheduling, has contributed to an increase in projected business contacts. 89
Department Summary City Attorney
City Attorney
Department Summary
The legal services program is a support function that provides legal advice and representation to the City Council, all City departments, and City Advisory Bodies to accomplish Major City Goals, other important objectives, and core operational functions in accordance with the law.
With the requested approval for Fiscal Year 2026-27 of a Regular 0.75 FTE Deputy City Attorney position to replace a long-standing, supplemental attorney position, the department is planning for the recruitment and onboarding of its newest staff member while simultaneously preparing for longer term transitions. For years, the City Attorney has worked to build a sustainable staffing structure to support the legal advisory and prosecutorial needs of the City, and in the First Quarter of Fiscal Year 2026-27 department staff will discuss and assess internal and external needs, with the goal of confirming organizational needs and effectiveness, finding efficiencies where possible, and setting reasonable expectations for the future.
While the department works toward long term staffing and service level sustainability with a focus on succession and development and ongoing management of claims, litigation and public records response, staff also foresee the need to provide significant legal support for: the transition to Citywide Single Vote; negotiations of development agreements and/or review of significant development projects; updates to City fee programs; implementation of fire severity zone changes and enhanced emergency medical response approaches; major CIP projects including Prado Road; and implementation of significant community partnership agreements, including SLO Museum of Art and SLORep.
Departmental Budget
Staffing note: Development of the 2025-27 Financial Plan occurred in conjunction with labor negotiations with San Luis Obispo City Employees’ Association and the unrepresented bargaining groups. Contingencies for negotiated cost of living and benefits adjustments were included in a non-departmental cost center in FY 2025-26, leading to artificially high departmental staffing budget increases in FY 2026-27.
The Department’s budget also includes changes to appointed official compensation as approved by the City Council on May 5, 2026.
Changes from Financial Plan
Actuals Budget Supplement
City Attorney FY 2024-25 FY 2025-26 FY 2026-27
Staffing $ 1,351,385 $ 1,513,000 1,641,722
YoY Change 10% 12% 9%
Other Operating Expenditures 301,359 144,575 330,845
YoY Change 26% -52% 129%
Total $ 1,652,745 $ 1,657,573 $ 1,972,569
YoY Change 12% 0% 19%
90
Department Summary City Attorney
The City was served with a lawsuit in Spring of 2026 and while initial funding was budgeted in FY 2025-26, an additional $170,000 has also been added to the FY 2026-27 budget for litigation defense matters.
The FY 2026-27 budget also includes $30,000 in new funding and $15,000 transferred from the Police Department for mediation services, with the contract to be managed through the City Attorney’s Office.
This funding is responsive to a Council expressed desire to once again provide mediation services to the community at no cost to resolve neighborhood conflicts, non-criminal police calls for service, tenant landlord issues, and more.
The budget reductions for the department, directed by City Council in March 2026, totaled approximately $60,000 with half coming from various contract reductions and the other half resulting from the transition of the existing 0.6 FTE supplemental Assistant City Attorney position to a 0.75 FTE regular Deputy City Attorney.
Performance Measures
Objective: Efficient and Transparent Administrative Appeals Program Strategic Goal: Department Objectives
2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Administrative Citation Appeals received by the City 125 85 100 Measure: Appeals closed without need of a hearing 60 28 35 Measure: City assisted corrections to defective appeals to allow access to hearing 40 24 30
Measure: City facilitated hearings on the record without need for personal appearance by Appellant 30 21 25
Measure: Number of hearing days scheduled 25 13 15
The October 2024 implementation of an appeal fee for Hearing Officer review continues to decrease the overall number of appeals received. Prior to this fee implementation, many appellants used the appeal process to delay payment of their fine even when there was no substantive basis for the appeal. Staff now, instead, have many conversations about the purview of the Hearing Officer and with requests for payment plans for fines directed toward the Finance Department. The decrease in overall appeals coincides with a decrease in the number of hearing days needed.
Objective: Legal Training & Compliance
Strategic Goal: Department Objectives
2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Number of Council, Staff, and Advisory Body legal trainings, legal updates, and compliance advisory sessions 20 24 20
91
Department Summary City Attorney
Objective: Municipal Claims, Litigation, & Prosecution Management Strategic Goal: Department Objectives
2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Percentage of liability claims against the City resulting in litigation <5% 3.6% <5% Measure: Liability claims against the City reviewed/managed 70 83 75 Measure: Budget increases required to fund defense of the City and address unexpected complex legal issues. $175,000 $264,000 $300,000 Measure: Number of multi-count complaints filed for misdemeanor municipal code violations 30 17 20
The budget increases required to fund defense of the City is higher than expected in FY 2025-26 due to multiple personnel investigations that became necessary, increased complexity of a receivership matter, and continued work in support of the transition to Citywide Single Vote for Council Member elections.
The forecast for FY 2026-27 is also higher since the budget is recommended for a $170,000 one-time increase due to existing litigation.
The number of multi-count complaints filed in FY 2025-26 dropped due to fewer underlying misdemeanor citations being issued. This can be attributed to a variety of factors, potentially including positive progress through the efforts of the Community Action Team (CAT) and Mobile Crisis Unit (MCU) and partnerships with field teams to connect individuals with services. Sadly, another reason for the decrease is that individuals who have historically engaged in behaviors generating high volume citations passed away. This is also why the forecast for next year is lower than expected. 92
Department Summary Community Development
Community Development Department
Department Summary
The Community Development Department guides and facilitates the growth and development of the community through the work of the Administration, Planning, Engineering, and Building & Safety divisions. Plans for new development and construction are reviewed by the Community Development Department to ensure compliance with standards and policy objectives, and neighborhood wellness and community safety are addressed through the code enforcement and building and safety teams. The department provides services directly to the public through the public counter, building inspections, code enforcement, and planning services, and also facilitates the work of a number of City boards and commissions, including the Planning Commission, Architectural Review Commission, Cultural Heritage Committee, Tree Committee, and Construction Board of Appeals.
The upcoming fiscal year includes a substantial portfolio of initiatives driven by Major City Goals, changing state laws, and a desire to facilitate housing in the community. In FY 2026–27, the department will continue to lead the implementation of the Housing and Neighborhood Livability and Homelessness Response Major City Goals, while monitoring progress and ensuring that General Plan policies and zoning regulations remain aligned with evolving municipal service needs and state laws. This includes work to continue to develop the Safe Housing Program, improve the Below Market Rate housing program, and implement the current Housing Element and update the Homelessness Response Strategic Plan. In addition, planning for the next City Budget and Housing Element Cycle will begin in FY 2026-27 as the City develops a Request for Proposal (RFP) for the important years-long Housing Element Update project and researches rental registry program development costs for potential inclusion in the next budget. The department also continues to work closely with the Fire Department to implement new Wildland Urban Interface (WUI) regulations and update the tree ordinance in light of the WUI adoption. The Code Enforcement Division will also continue its multi-year effort to improve service delivery, consistency, and efficiency amid rising case volumes, while also focusing on neighborhood livability and safe housing. This includes evaluating program structure and resource allocation; updating and formalizing standard operating procedures; refining enforcement priorities and workload distribution; addressing outdated or unclear code provisions; enhancing use of service request platforms such as ASK SLO; and improving data tracking, reporting, and case management practices.
Departmental Budget
Staffing note: Development of the 2025-27 Financial Plan occurred in conjunction with labor negotiations with San Luis Obispo City Employees’ Association and the unrepresented bargaining groups. Contingencies for negotiated cost of living and benefits adjustments were included in a non-departmental cost center in Actuals Budget Supplement
CDD FY 2024-25 FY 2025-26 FY 2026-27
Staffing $ 6,313,612 $ 6,416,659 6,997,832
YoY Change 12% 2% 9%
Other Operating Expenditures 1,551,204 1,957,998 1,669,824 YoY Change 1% 26% -15%
Total $ 7,864,816 $ 8,374,657 $ 8,667,656
YoY Change 10% 6% 3%
93
Department Summary Community Development
FY 2025-26, leading to artificially high departmental staffing budget increases in FY 2026-27.
Changes from Financial Plan
Following the Council’s approval of the proposed strategic expenditure reductions on March 3, 2026 (Item6b), the Community Development Department’s budget has been reduced by 2.13%, totaling $170,125. The staffing related reductions do not result in the elimination of any positions.
The recommended budget includes $4,667 to increase the annual allocation of bus tokens for CAPSLO clients served at the 40 Prado Homeless Services Center. For the past four fiscal years, the City has allocated $14,000 to provide 9,000 tokens annually. As CAPSLO’s client volume has grown, the monthly distribution of 750 tokens has consistently fallen short of demand, with supplies often exhausted before the end of the month, leading to repeated requests for additional tokens. CAPSLO requests that, during the FY 2026–27 contract review process, the City approve a cost increase to expand the annual allocation from 9,000 to 12,000 bus tokens. If approved, the increase will ensure CAPSLO can meet essential client transportation needs, including travel to medical appointments, social service providers, employment opportunities, and daily access to the 40 Prado Homeless Services Center. Most clients do not have vehicles and rely heavily on public transit. This action supports the City’s Homelessness Response Strategic Plan and aligns with the Major City Goal for Homelessness Response, including ongoing collaboration with CAPSLO to strengthen services at 40 Prado.
Performance Measures
Performance measures are designed to determine accountability, improve service quality, allocate resources, and evaluate departmental performance in meeting San Luis Obispo’s goals and objectives.
Objective: Affordable Housing
Strategic Goal: Housing
2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Number of affordable housing units secured through entitlements or construction. 50 64 50
Notes: This performance indicator helps determine the City’s progress toward meeting the affordable housing segments of its Regional Housing Needs Assessment (RHNA).
Objective: Ensure a Safe Community
Strategic Goal: Housing
2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Percent Code Enforcement cases investigated on time: First Tier – 24 Hours, Second Tier – 2 Days, and Third Tier – 3-5 Days 85% 63.3% 85% Timeliness of initial responses to code enforcement investigation requests fell short of the initial target, largely due to a sustained rise in service demand. Investigation requests have increased by approximately 130% since FY 2021–22, based on partial-year data, and are projected to grow by more than 200% from FY 2021-22 to FY 2025-26 if current trends continue. During this period, on time response rates declined from 79.8% in FY 2021–22 to 59.6% in FY 2024–25. Performance has improved in the current fiscal year 94
Department Summary Community Development
to 63.3%, reflecting the stabilization of staffing levels and increased efficiency as recently hired staff reached full proficiency. However, workload remains elevated, and cases continue to increase in both volume and complexity. Although not all requests are completed by the assigned due date, most are resolved shortly thereafter: approximately 89% within three days and about 97% within two weeks. These short delays indicate timing challenges rather than persistent backlog. Staff continue to prioritize urgent, life safety, and legally mandated cases. Ongoing modernization efforts aim to further enhance efficiency and better align service levels with demand.
Objective: Development Review Activities
Strategic Goal: Other Department Objectives
2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Percent of projects that are reviewed within defined cycle times 75% 87% 75% Notes: Staff recommends keeping the target goal of meeting cycle times 75% of the time and not raising the target at this time. This is due to the fact that the department continues to experience an increase in more complex and resource intensive development review activities.
Objective: Provide Excellent Customer Service
Strategic Goal: Other Department Objectives
2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Customer survey response positivity rate 90% 91.41% 90% Notes: Customers in Community Development are given a survey to gauge satisfaction and collect feedback to inform ongoing improvement efforts.
Objective: Building Permit Review Activities
Strategic Goal: Economic Stability
2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Percent of building permit reviews completed within established cycle times (all departments). 75% 51% 75%
Notes: This measure considers data from all departments and divisions that review permits.
Despite not meeting the target, performance continues to show steady, meaningful improvement. On time completion rates increased from 33% in 2022–23, to 50% in 2023–24, to 51% this fiscal year. In addition, further analysis of the data reveals that 25% of the permit reviews that were not completed on time were completed within one day of their due date. Recent software upgrades, including expanded digital submittal capabilities, automated routing, and improved applicant access to project information, are contributing to the positive trend in review times, however, remaining process inefficiencies and staffing constraints continue to affect final turnaround times. Staff remain focused on refining workflows and strengthening efficiency to build on the progress made to date. 95
Department Summary Finance
Finance Department
Department Summary
The Finance Department is responsible for managing the City’s financial operations in accordance with applicable law, policies, standards, and procedures. This includes the preparation of the City’s budget and financial reports, administration of the City’s treasury and revenue operations, management of the City’s fiscal resources, and administration of the accounting functions including indirect City‐wide costs not easily charged to operating programs or projects. The department prepares the City’s audit and its Comprehensive Annual Financial Report as well as the Popular Annual Financial Report. The department also facilitates the procurement of goods and services to support departments in providing City programs and services. Lastly, the department assists the City Manager’s office in monitoring and reporting on both annual revenues and expenditures.
In the last year, the department has made progress on a number of important initiatives. With adoption of the 2025-27 Financial Plan, staff signaled to the City Council and community that the long-term forecast for the General Fund identified deficits in the out years, due to the City’s requirement to bring a fifth Fire Station online. The expansion of fire service, coupled with economic uncertainty and slowed revenue growth compared to what the City experienced in recent years due passage of the Local Revenue Measure in 2020 and the post-Covid surge, necessitated a budget Citywide budget balancing exercise which includes the recommended expenditure recommendations included with this budget. The Finance Department led this effort, in coordination with the City Manager.
In addition to a heavy focus on budget balancing to ensure the sustainability of the City’s operations, the department continues to focus on updating policies and procedures to meet the current needs of the organization and our customers. The department has made a number of improvements to the annual Business License renewal process to enhance communications with local business operators to increase compliance with Municipal Code requirements and ensure collection of Business Tax; additional improvements are still in progress and staff expect to hold a study session with the City Council in early 2027 to discuss and recommend changes to Business License program administration overall (see revised Major City Goal, “Cultural Vitality, Economic Resilience, and Fiscal Sustainability,” Work Plan Item 5.d.).
In addition, the department is in the process of making updates to the City’s Purchasing Policy, with an intent to streamline administrative processes while still ensuring proper stewardship of taxpayer dollars.
The department continues to work closely with Information Technology and Human Resources staff to improve the Oracle ERP. In the last year, staff completed a multi-year effort to improve the calculation of overtime which has significantly increased the efficiency of payroll processing and helped to reduce errors.
A number or Oracle ERP projects are currently underway and Finance Department staff continues to provide regular Oracle trainings as well as trainings on other Finance topics to staff Citywide.
Finally, staff continues to work with the Federal Emergency Management Agency (FEMA) and California Office of Emergency Services (CalOES) to secure reimbursement for the City’s unbudgeted costs related to the 2023 Winter Storms. The City has received $1.9 million in reimbursements to date and is cautiously optimistic that future reimbursement will be received, though the timing is uncertain. 96
Department Summary Finance
Departmental Budget
Staffing note: Development of the 2025-27 Financial Plan occurred in conjunction with labor negotiations with San Luis Obispo City Employees’ Association and the unrepresented bargaining groups. Contingencies for negotiated cost of living and benefits adjustments were included in a non-departmental cost center in FY 2025-26, leading to artificially high departmental staffing budget increases in FY 2026-27.
Changes from Financial Plan
Staff’s recommendation includes ongoing funding to meet the increased cost to print and mail Local Revenue Measure annual reports and business license renewals, as well as two contractual cost increases.
The recommended budget also includes an SOBC for one-time funding in the amount of $60,000 to fund consultant work to prepare a user fee study.
The recommended budget also includes $29,935 in expenditure reductions from the prior year as part of the budget balancing exercise. These cost savings were primarily driven by reductions to software licenses and functionality and by elimination of contracts to outsource certain tasks which staff will perform going forwards.
Performance Measures
Objective: Financial Stability
Strategic Goal: Fiscal Policies
2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Number of calendar days following year-end until the Annual Comprehensive Financial Report (ACFR) is issued 170 180 180 The City is legally required to publish the ACFR within 180 days and finds this timeline sufficiently challenging to meet with little value in publishing earlier, given that the document typically is not ready until it is presented to the City Council in mid-January to early February.
Objective: Financial Stability
Strategic Goal: Fiscal Management
2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Twelve-month total rate of return on the City’s investment portfolio 3.0% 3.0% 3.0% Actuals Budget Supplement
Finance FY 2024-25 FY 2025-26 FY 2026-27
Staffing $ 2,108,755 $ 2,196,169 $ 2,402,509
YoY Change 18% 4% 9%
Other Operating Expenditures 577,836 574,187 615,651
YoY Change 16% -1% 7%
Total $ 2,686,591 $ 2,770,356 $ 3,018,160
YoY Change 18% 3% 9%
97
Department Summary Finance
Measure: General Fund debt service as a percent of revenue 1.5% 1.5% 1.5% The twelve-month rate of return is outside the City’s control. Returns on the City’s portfolio can be volatile and can change drastically due to changes in market conditions.
Objective: Financial Stability
Strategic Goal: Customer Service
2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Percent of business licenses renewed timely, prior to enforcement action being taken 95.0% 95.3% 95.0%
Measure: Number of Finance-led trainings provided to City staff 13 18 15 The department has exceeded the FY 2025-26 target related to Business License renewals due to a focused effort to encourage business operators to update their contact information with the City if needed, and efforts to communicate renewal requirements at least monthly during business license renewal time.
The department expects to exceed its target for trainings in the current year. Staff have led many unplanned, additional trainings driven by non-recurring needs like rollout of new software functionality. 98
Department Summary Fire
Fire
Department Summary
In addition to providing exceptional and compassionate emergency response, the Fire Department embraces comprehensive fire prevention and community risk reduction strategies that include fire and life safety inspections, plan review services, fire/arson investigation, fire safety and public safety education, and City emergency management. The Fire Department has automatic and mutual aid agreements with surrounding departments, California Office of Emergency Services, and the Los Padres National Forest. With the values of Service, Loyalty, Ownership, Family, Integrity, Respect and Excellence, the Department’s vision is to be a progressive organization that leads the community in public safety and preparedness demonstrated through an unwavering commitment to the protection of lives, property, and our environment. The service the department provides will be of the highest quality recognized against local, state, and federal standards.
During FY 2025-26, notable achievements included: (1) Delivery of replacement Engine 4, that was ordered in 2022 and custom built for the City; (2) In conjunction with the Finance Department completed financing agreement with JPMorgan for the purchase of Engine 5 in preparation for new Station 5; (3) Fire Prevention Bureau completed 100% of 699 state mandated inspections; (4) the Emergency Manager enrolled the first San Luis Obispo neighborhood as a voluntary FireWise community; and (5) Responded to over 7,300 calls, including 150 fires.
Departmental Budget
Changes from Financial Plan
Staff is recommending one new budget change, which is the reclassification of the Mechanic Helper to a Heavy Equipment Mechanic, with an increased cost of $12,578. The Mechanic Helper position has been vacant since November when the previous Mechanic Helper was promoted and moved to the Public Works Fleet Division. After a failed recruitment for a Mechanic Helper, it was determined that reclassifying the position would increase the viable candidates. A Heavy Equipment Mechanic brings a higher level of expertise that would increase the capacity of the Fire Fleet division who frequently work into the night and come in on weekends to complete emergency repairs as well as regular maintenance.
Staff also recommends $43,872 in budget changes for ongoing operating costs in the FY 2026-27. Of those, Actuals Budget Supplement
Fire FY 2024-25 FY 2025-26 FY 2026-27
Staffing $ 17,542,815 $ 16,907,084 17,651,320
YoY Change 18% -4% 4%
Other Operating Expenditures 1,244,335 1,155,828 1,117,972 YoY Change 12% -7% -3%
Total $ 18,787,150 $ 18,062,912 $ 18,769,292
YoY Change 18% -4% 4%
99
Department Summary Fire
$20,260 is for fuel due to increased price per gallon. Year over year, the diesel price per gallon is up nearly 50% and gasoline is up 30%. Staff’s recommendation is based on a 20% increase under the assumption that fuel prices return to normal over the year. Software costs for essential functions including scheduling, inventory tracking, and training will increase $7,500 in the next fiscal year. Supplies used on medical calls, which account for 60% of the department’s calls, will go up $6,000 due to increased prices and the addition of new equipment and medications mandated by the local regulatory agency required to be carried on all frontline apparatus. $6,814.40 is requested for cost increases on required equipment such as tires, hose, and personal protective equipment (PPE) for firefighters. Memberships costs for organizations that staff belong to such as National Fire Protection Agency (NFPA) and Certified Unified Protection Agency (CUPA) are increasing $3,300.
The Fire Department recommends eliminating the three firefighter over-hire positions that are currently vacant. Minimum daily staffing at the fire department is fourteen (14) firefighters per day plus a fifteenth firefighter scheduled without a regular assignment daily as an over-hire over three shifts. This results in a total of three unassigned over-hire firefighter positions. These three positions are used to backfill positions when others are on leave or there is a vacancy and they have been vacant since Summer 2025.
Eliminating these positions will provide $450,000 of salary savings that is recommended to be reallocated to the department’s overtime budget that has been underfunded for several years. (There is also a currently vacant firefighter position assigned to the MCU that is not included in this recommendation.) Performance Measures
Fire departments report incident data to the United States Fire Administration (USFA), an agency within Federal Emergency Management Agency (FEMA) to create a national picture of fire, EMS, rescue, hazardous materials, and other emergency response activity. While federal reporting is not mandatory it is incentivized through eligibility for all federal grant programs.
Fire departments use third party report management software integrated with USFA to report the data for efficiency, consistency and accuracy. This software also allows the department to track staffing, deployment analysis and accreditation- which are the metrics used for the department’s objectives and goals. San Luis Obispo City Fire uses the most widely used software in the state including by Cal Fire.
On January 1, 2026, USFA sunset the legacy reporting platform and implemented the new National Emergency Response Information System (NERIS). The transition included revised incident classifications and updated reporting requirements. Although the Fire Department’s records management system successfully submitted required incident data, several supplemental reporting modules, including accreditation and performance metrics, were delayed pending vendor updates. While the module became operational in mid-May 2026 metrics are reflecting results outside the established targets despite no corresponding operational change. To address these challenges, staff have been actively coordinating with the software vendor to implement required system updates and improve functionality. Staff have participated in industry training and conference sessions focused on the transition and anticipate continued improvements in data consistency and reporting reliability as system refinements are completed. Staff expects full reporting functionality within the coming months and anticipates improved accuracy and reliability of performance metrics presented in future budget documents, including the fiscal year-end budget report.
100
Department Summary Fire
Objective: Deliver Timely Effective Response to ensure rapid care and hazard mitigation Strategic Goal: Other Department Objectives
2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Meet the Total Response Time (TRT) goal of 7 minutes or less to 90% of all lights-and-siren emergencies in the City as defined by the Department’s Master Plan. TRT Includes Call Processing Time, Turnout Time, and Travel Time. 7:00 unavailable 7:00
Measure: Meet the Call Processing Time goal of 1 minute or less to 90% of all lights-and-siren emergencies in the City as part of TRT. 1:00 unavailable 1:00 Measure: Meet the Turnout Time goal of 2 minutes or less to 90% of all lightsand-siren emergencies in the City as part of TRT. 2:00 unavailable 2:00 Measure: Meet the Travel Time goal
of 4 minutes or less to 90% of all lights-and-siren emergencies in the City as part of TRT.
4:00 unavailable 4:00
Notes: Travel time is impacted by construction, traffic, and expanded response zones. Some distant locations with greater travel times generate a large portion of calls increasing travel time.
While it is not anticipated the department will meet the Total Response Time performance targets in FY 2025-26, they remain unchanged due to National Fire Protection Association recommended standards.
As the only metric the department has full control over, the goal to meet Turnout Time of 2 minutes or less to 90% of all lights-and-sirens emergencies in the City has been met.
Objective: Deliver Timely Effective Response to ensure rapid care and hazard mitigation Strategic Goal: Housing
2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: % of Fire Department Development Review activities completed within published cycle times 80% 68% 80%
This metric is tracking below target for the year due to staff turnover and training needs. Staff is working to improve response times.
101
Department Summary Human Resources
Human Resources
Department Summary
Human Resources provides comprehensive organizational support, including benefits administration, recruitment, compensation, labor relations, risk management, performance management, training and development, and legal compliance.
During FY 2025-26, notable achievements included:
(1) Completing a Citywide Employee Engagement Survey;
(2) Negotiating a successor MOU with SLOCEA, prior to contract expiration, for the first time in 25 years; (3) Implementing a new Roth 457 option for employee retirement savings; (4) Providing Gallup strengths training in-house due to HR Analyst becoming a certified strengths coach; (5) Supporting the reorganization of Public Works and Utilities into one Department; (6) Complying with new regulations, such as AB 339 and AB2561; (7) Recruiting for a new Fire Chief; and
(8) Accepting a Liability Risk Management Award from the California Joint Powers Insurance Authority.
The department is fully staffed for the first time in five years, and the newest members of the team are getting fully trained in their roles. The team will soon be in a position to move more projects forward that have previously been deferred.
The department continues to partner with the Centre for Organization Effectiveness and the California Joint Powers Insurance Authority to provide professional development opportunities for employees and supervisors across the organization. A committee has been established to explore enhancements to benefits that would further support employees caring for family members or experiencing disability. In addition, a consultant has been selected and work has begun on consolidation and enhancement of the Deferred Compensation program offered to employees.
There has been a notable increase in the number of employee relations cases, requests for leaves of absence and disability accommodations, as well as issues requiring either intervention, training or formal investigation, which have added to staff workload as well as the need for assistance from specialized consultants.
Related to the City’s Risk Management Program, the City’s Insurance Fund is structured to maintain an adequate reserve to accommodate fluctuations in liability and workers’ compensation costs. In February 2026, as part of the FY 2025-26 Second Quarter Budget Report, the City Council approved a one-time transfer of $802,799 from unassigned fund balance to align the Insurance Fund reserve with the City’s Fund Balance and Reserve Policy. The Policy states that the Insurance Fund will be funded based on 150% of the previous five-year average claims experience (e.g., claims paid, reserves for known claims, and administrative expenses). The Policy further states that the Insurance Fund will maintain a reserve sufficient to guard against substantial claims which will be determined based on annual actuarial report information. To reach the actuarially recommended funding level as of October 10 ,2025, which reflects a 75% probability level of covering existing and future claims, the Insurance Fund would require an additional $3,110,581. Staff will continue to monitor the Insurance Fund balance and will provide 102
Department Summary Human Resources
opportunities for the Council to consider future unassigned fund balance allocations in the coming years.
Overall, the department focused on and achieved its highest priority goals and will continue to pursue opportunities for efficiency and enhancements that will further support the City’s workforce.
Departmental Budget
Staffing note: Development of the 2025-27 Financial Plan occurred in conjunction with labor negotiations with San Luis Obispo City Employees’ Association and the unrepresented bargaining groups. Contingencies for negotiated cost of living and benefits adjustments were included in a non-departmental cost center in FY 2025-26, leading to artificially high departmental staffing budget increases in FY 2026-27.
Changes from Financial Plan
Additional funding of $5,000 is requested due to a change in ownership for the City’s Medical Service Provider and a resulting need to renegotiate the contracted pricing. This provider conducts preemployment physicals, DMV physicals for commercial drivers, and vaccinations for occupational exposures.
Recommended budget reductions totaling $48,200 include non-renewal of a software contract that is not meeting the City’s needs, reduction of consultant support for position re-classifications and division reorganizations, a reduction in cost for public safety preventative mental health services due to reimbursement available from the California Joint Powers Insurance Authority, and a reduction in cost for public safety dispatcher testing software as there was a negotiated price decrease.
In addition, the City will be implementing a reorganization during the 2026-27 fiscal year in which the regular half-time Administrative Assistant position previously assigned to support the Assistant City Manager in the City Administration Department will be reallocated to the Human Resources Department.
The Assistant City Manager no longer requires dedicated administrative support, allowing the half‑time resource to be better utilized by centralizing temporary recruitment functions within the Human Resources Department. Currently, the Parks and Recreation Department, which employs between 200 and 300 temporary or seasonal staff annually, relies on its full-time Administrative Assistant to coordinate temporary recruitments, with approximately 20 hours of the position’s weekly schedule devoted to these duties. As a result, transitioning this work to Human Resources, who oversee recruitments for all departments, will help to streamline and enhance recruitment processes citywide. This shift will also allow Actuals Budget Supplement
HR FY 2024-25 FY 2025-26 FY 2026-27
Staffing $ 1,492,891 $ 1,595,615 1,711,434
YoY Change 13% 7% 7%
Other Operating Expenditures 593,095 442,218 406,003
YoY Change -30% -25% -8%
Total $ 2,085,986 $ 2,037,833 $ 2,117,437
YoY Change -4% -2% 4%
103
Department Summary Human Resources
the Parks and Recreation Administrative Assistant to focus more fully on ongoing department administrative support duties. This change does not affect the City’s overall FTE count and results in a net savings of $36,000. This is achieved by reducing the Parks and Recreation Department’s temporary staffing budget by $36,000, decreasing the City Administration budget by the same amount to reflect the reallocated half‑time position, and adding $36,000 to the Human Resources budget to support the position’s reassignment.
Performance Measures
Objective: Attract and retain top talent to meet the needs of the organization.
Strategic Goal: Decrease time to hire through efficient recruitment processes. 2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Number of New Hires Processed 130 58 130
Measure: Median Time to Hire 85 days 61 days 75 days
A hiring chill was in place for the first eight months of FY 2025-26, and there was less turnover compared to the prior fiscal year, reducing the number of recruitments and resulting in fewer new hires. The median time to hire also decreased due to filling more positions through internal promotions as well as through existing eligibility lists.
Objective: Attract and retain top talent to meet the needs of the organization Strategic Goal: Increase employee engagement and satisfaction, resulting in fewer vacancies and increased tenure.
2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Median Tenure of Regular Workforce 5 years 6 years 5 years Measure: Vacancy Rate 9% 7.8% 9%
Objective: Empower employees to reach their full potential Strategic Goal: Facilitate an evaluation system to deliver clear performance expectations and regular, timely feedback.
2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Percentage of On-Time Performance Evaluations 95% 97% 95% Objective: Reduce the total cost of workers’ compensation claims Strategic Goal: Facilitate return to work through modified duty assignments to support employee wellbeing while also minimizing costs.
2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Percentage of Eligible Employees Offered a Modified Duty Assignment 80% 81% 80% 104
Department Summary Parks and Recreation
Parks and Recreation
Department Summary
The Parks and Recreation Department is committed to providing high-quality parks, facilities, and programs that promote health, wellness, and community connection. Key assets such as the SLO Swim Center, Damon-Garcia Sports Complex, and Laguna Lake Golf Course serve as community hubs while staff provide recreational programs, special events, youth and senior services, and cultural and educational opportunities throughout the City. Through these offerings, the department fosters community engagement and enhances quality of life through leisure, cultural, and social pursuits.
In addition to maintaining and activating recreational spaces, the department protects and preserves the City’s 4,050 acres of natural resources and open spaces and manages the Citywide Public Art and Volunteer programs. Guided by the Parks and Recreation Blueprint for the Future, the department continues to prioritize inclusive programming, environmental stewardship, and community-building initiatives.
In FY 2026-27, the department will focus on key initiatives across multiple service areas, including advancing Public Art policy updates and Master Plan review, making progress on the Open Space Strategic Trail Plan, strengthening recreational field preparation operations and staffing for recreational programming, and supporting capital improvements at the Golf Course, including the bridge project and Pro Shop renovation. The department will also evaluate service delivery models for the golf program and facility, including assessing fee structures, to ensure long-term sustainability and alignment with community needs.
The Parks and Recreation budget is primarily comprised of personnel costs. In addition to full-time staff, the department relies heavily on a supplemental workforce, which may range from 150 to 200 employees depending on the season. These employees support essential services such as aquatics programming, childcare, facility operations, open space fuel reduction, and community event support. This staffing model enables the department to deliver consistent, high-quality services while remaining responsive to the evolving needs of the community.
Departmental Budget
Staffing note: Development of the 2025-27 Financial Plan occurred in conjunction with labor negotiations with San Luis Obispo City Employees’ Association and the unrepresented bargaining groups. Contingencies for negotiated cost of living and benefits adjustments were included in a non-departmental cost center in FY 2025-26, leading to artificially high departmental staffing budget increases in FY 2026-27.
Actuals Budget Supplement
Parks & Rec FY 2024-25 FY 2025-26 FY 2026-27
Staffing $ 5,099,308 $ 5,245,267 5,630,608
YoY Change 12% 3% 7%
Other Operating Expenditures 914,852 977,429 888,612
YoY Change 7% 7% -9%
Total $ 6,014,160 $ 6,222,696 $ 6,519,221
YoY Change 11% 3% 5%
105
Department Summary Parks and Recreation
Changes from Financial Plan
Following the Council's approval of the proposed strategic expenditure reductions on March 3, 2026 (Item 6b), the Parks & Recreation Department's budget has been reduced by 1.47%, totaling $90,042. The reductions to staffing do not result in the layoff of any filled positions.
The recommended budget does not include any expenditure additions. Recommended reductions totaling $90,042 were strategically selected to minimize community impact and are primarily driven by improved operational efficiencies in temporary staffing, elimination of low-utilization contract class offerings, consulting services, and alignment of operating budgets with recent actual spending trends. Temporary staffing costs in the Facilities Division have been reduced following a reorganization of set-up and takedown procedures for the Downtown Dining Program at Mission Plaza, resulting in a more efficient operational model. Contract Services reductions reflect the elimination of Strategic Plan Implementation consulting, a roughly 20% reduction in contract class offerings based on enrollment and financial performance, reduced funding for contracting for open space cleanups due to increase by in-house staff clean-ups, and contracts for live music at special events. The remaining reductions span travel and training, advertising, recreation supplies, and miscellaneous operating line items across the Jack House, Rangers, Golf, Volunteer, and Community Services programs, largely in areas identified where actual spending has historically fallen below budget.
In addition, the department reduced the temporary staffing budget for administrative support by approximately $36,000 as part of a City reorganization. As outlined in the Human Resources Department’s summary, temporary recruitment functions currently performed by the Parks and Recreation Administrative Assistant will be centralized within Human Resources during the 2026-27 fiscal year. With these responsibilities transitioning out of the department, the remaining administrative duties can be redistributed between the regular full-time position and temporary staff, resulting in a net savings of $36,000.
Performance Measures
Objective: Provide inclusive, accessible programming that serves the whole community Strategic Goal: Provide quality childcare to the community to support economic recovery through regional partnerships to enhance and expand childcare offerings to the community 2025-26
Target
2025-26
Projected
Actual
2026-27 Target
Measure: Number of youth sports registrations (clinics and leagues) 1,800 2,092 1,800
Measure: Number of adult sports registrations (clinics and leagues) 2,950 3,186 3,200
Measure: Number of senior programs/events offered 82 77 82 Measure: Number of contract class enrollments 800 675 700 Measure: Number of youth swim lessons enrollments 930 930 930 Measure: Number of aquatics facility entries (lap swim, rec swim, etc.) 81,000 73,000 76,000
Measure: Number of total golf rounds 24,000 23,815 25,000 106
Department Summary Parks and Recreation
Measure: Number of youth camp registrations/available spots 2800/2800 2727/2800 2800/2800 Measure: Number of school year childcare spots offered/filled 1675/1675 1675/1675 1675/1675 Measure: Number of children receiving subsidy
60 CAPSLO
25 City
Scholarship
60 CAPSLO
45 City
Scholarship
60 CAPSLO
40 City Scholarship
The number of youth sports registrations in FY 2025-26 is projected to exceed the target, reaching 2,092 compared to the goal of 1,800, reflecting stronger-than-anticipated participation for futsal. The FY 2026- 27 target will remain at 1,800, as current program capacity and staffing levels are designed to support this baseline, with flexibility to accommodate higher demand if needed and if the appropriate amount of volunteer coaches are provided through the City’s partner agency, YMCA.
The number of adult sports registrations in FY2025-26 is projected to exceed the target, reaching 3,186 compared to the goal of 2,950, indicating stronger-than-anticipated participation due to drop-in leagues.
The 2026–27 target will remain at 3,200 to reflect this sustained demand while maintaining a realistic baseline for program capacity.
The number of senior programs and events offered in FY 2025-26 is projected to fall slightly below the target, with 77 delivered compared to the goal of 82. The FY 2026-27 target will remain at 82, reflecting a continued emphasis on providing creative and interactive senior programming.
The number of contract class enrollments in FY 2025-26 is projected to fall below the target, with 675 enrollments compared to the goal of 800. This has been a continuing downward trend despite increased marketing. The FY 2026-27 target enrollment has been reduced to 700 to reflect declining enrollment patterns, as well as staff have assessed lower enrollment classes and non-popular classes for elimination to support budget reductions.
The number of aquatics facility entries in FY 2025-26 is projected to fall below the target, with 73,000 entries compared to the goal of 81,000, reflecting reduced usage, particularly among high school user groups with Atascadero High School reopening their pool facility. The FY 2026-27 target has been adjusted downward to 76,000, from 81,000, to better align with current participation trends while maintaining capacity for potential increases in use.
Youth camp registrations in FY 2025–26 are projected to fall slightly below target, with 2,727 registrations compared to the goal of 2,800. This shortfall is primarily due to the cancellation of the Junior Ranger Camp (spring session) because of staffing vacancies and leaves of absence, as well as the introduction of a new Golf Camp that is still building enrollment. (Youth Services out-of-school, traditional childcare camps, met their annual target of 2,500 spots and will remain as such, with expectations that resources and demand remain the same.) The FY 2026-27 department target will remain at 2,800, reflecting expectations that staffing levels will stabilize and participation in newer programs will grow with continued marketing efforts.
The number of children receiving subsidies in FY 2025-26 remains consistent with the CAPSLO program target of 60 participants. City Scholarship utilization has exceeded the original target of 25, with 37 scholarships issued to date and a projected year-end total of approximately 45. While issued scholarships total approximately $37,000, only $18,000 has been utilized to date, indicating that a portion of awarded funds has not yet been utilized by recipients. Based on current demand and utilization trends, the 2026- 107
Department Summary Parks and Recreation
27 City Scholarship target has been increased to 40 participants to better align with anticipated usage levels of approximately $25,000.
Objective: In coordination with Public Works, engage the public to prioritize new and revitalized Recreational Amenities
Strategic Goal: Initiate public engagement for prioritization of projects, focused on meeting amenity needs identified by the City‐wide inventory assessment and specific to City subareas. 2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Number of public outreach meetings 4 2 2
Measure: Number of updated or new parks and amenities in process
3 4 4
The number of Public Outreach Meetings in FY 2025-26 is projected to fall below target, with two meetings held for Emerson Park and Righetti Community Park. For FY 2026-27, the target has been reduced from four to two to better align with anticipated project activity, including a project kick-off meeting for Emerson Park and a public meeting for playground replacements at Vista Lago and DeVaul Parks.
The projected actual for FY 2025-26 and the FY 2026-27 target both reflect four ongoing park projects initiated in 2025-26: Righetti Community Park, Emerson Park, and playground replacements at Vista Lago and DeVaul Parks.
Objective: Creates and fosters a sense of community through citizen involvement Strategic Goal: Activate parks and public spaces through community focused events, including volunteer opportunities, and public art that promote inclusivity, provides cultural unity, develops a sense of community and supports healthy lifestyles.
2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Number of Department Community Events (free or low‐cost) 25 25 25
Measure: Number of total volunteers/hours 700/6000 1308/6588 1000/6200 Measure: Number of volunteer opportunities 35 48 40
Measure: Number of Public Art or Cultural Art Events 9 16 9 Measure: Number of temporary/permanent public art
installations 24 23 12
Volunteer participation in FY 2025-26 significantly exceeded the target due to the inclusion of Advisory Body members in total counts and increased Single Day of Service opportunities. To reflect this expanded tracking approach, the FY 2026-27 target for total volunteers has been increased from 920 to 1,000, while volunteer hours remain unchanged at 6,200.
The number of Volunteer Opportunities exceeded the FY 2025-26 target due to increased City department/divisional demand for both recurring and single-day volunteer roles. Because many opportunities span multiple fiscal years, the FY 2026-27 target has been adjusted upward, from 35 to 40, to better reflect ongoing volunteer opportunities.
108
Department Summary Parks and Recreation
The FY 2025-26 target for Public Art and Cultural Events was exceeded due to additional Box Art Anniversary events and community mural project paint days. Despite this increase, the FY 2026-27 target will remain unchanged, as these events are not expected to occur at the same frequency annually.
Objective: Open Space Preservation and Enhancement
Strategic Goal: Continue to develop new trail networks and maintain the current Open Space acres and trail system while focusing on riparian area conservation with encampment clean‐ups, fire fuel reduction, and creek and flood control.
2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Number of miles of Open Space trails maintained 68.5 70 72 Measure: Number of staff hours dedicated to fuel reduction 4,000 4,000 4,000 Measure: Number of encampment site clean-ups removed from Open Spaces 55 52 55
The FY 2026-27 target for miles of Open Space trails maintained has been increased from 69.5 to 72 miles after meeting the prior target in FY 2025-26. The mileage was added to Righetti and Reservoir Canyon open space properties. Ranger staff anticipate expanding Miossi and adding additional miles at Reservoir Canyon open spaces, contributing to the higher target.
109
Department Summary Police
Police
Department Summary
The Police Department is responsible for maintaining a safe city by working in partnership with the community. Goals of the department are to protect life and property, prevent and reduce crime, and improve the quality of life for residents and visitors alike. The department has two bureaus; Administrative Services and Operations. Administrative Services includes the following work divisions: Administration, Investigations, Communications, and Records. The Operations bureau includes Patrol, Traffic Safety, and Neighborhood Outreach.
Important initiatives for FY 2026-27 include continuing to work on the department’s strategic plan, prioritize staffing needs (as outlined in the department’s staffing study), working with Public Works on a tenant improvement project for 1042 Walnut, and continuing to foster community trust and strengthen partnerships.
Departmental Budget
Changes from Financial Plan
The department’s Significant Operating Budget Changes include budget increases in contract services primarily for costs related to animal control services, janitorial, and annual software renewals.
As a result of budget reductions, the department eliminated the Data Crime Analyst position. The funding from the elimination of this position is recommended to be reallocated to the department’s overtime budget.
Performance Measures
Objective: Reduce Crime
Strategic Goal: Create a safe community for residents and visitors. 2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Total Number of Part 1 Crimes per Year 1,536 1,210 (calendar 2025) 1,521
Actuals Budget Supplement
Police FY 2024-25 FY 2025-26 FY 2026-27
Staffing $ 23,073,521 $ 23,764,483 24,985,624
YoY Change 7% 3% 5%
Other Operating Expenditures 1,583,597 1,834,080 1,898,577 YoY Change -1% 16% 4%
Total $ 24,657,118 $ 25,598,563 $ 26,884,201
YoY Change 6% 4% 5%
110
Department Summary Police
Notes: Includes homicide, forcible rape, robbery, aggravated assault, burglary, and motor vehicle theft. Figures shown are for the calendar year.
Objective: Provide Safe Roadways for Pedestrians, Vehicles, and Bicyclists Strategic Goal: Utilize the department’s Traffic Safety division to focus on traffic enforcement and create safe roadways.
2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Total Number of Collisions per Year
Vehicle:539
Ped: 31
Bicycle: 49
Vehicle: 528
Ped: 35
Bicycle: 59
Vehicle:534
Ped: 30
Bicycle: 48
Notes: Figures shown are per calendar year.
Measure: Annual Office of Traffic Safety (OTS) Grant
Enforcement Operations
DUI Checkpoint:
2 DUI Checkpoint: 2 DUI Checkpoint: 2
DUI Saturations:
14 DUI Saturations:
14 DUI Saturations:
20 Traffic
Enforcement
Ops: 14
Traffic
Enforcement
Ops: 14
Traffic
Enforcement
Ops:14
Distracted
Driving Ops: 14
Distracted Driving
Ops: 14
Distracted
Driving Ops:14
Ped/Bike
Enforcement: 2
Ped/Bike
Enforcement: 2
Ped/Bike
Enforcement: 2
Traffic Safety
Education: 2
Traffic Safety
Education: 2
Traffic Safety
Education: 2
Notes: Figures are based on specific grant related objectives outlined in the annual grant agreements which may vary from year to year. The OTS grant period is from October - September.
Objective: Reduce Homeless Related Calls for Service Through Proactive Engagement Strategic Goal: Utilize the department's Community Action Team (CAT) to provide resources and services to the City's homeless community.
2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Calls for service related to homelessness 8,272 8,145 8,024 Notes: Figures shown are based on fiscal year.
Measure: Number of unique individuals contacted by CAT 419 568 550 Notes: Figures shown are based on fiscal year.
Measure: Number of Family and Agency Reunifications 7 6 7 Notes: Figures shown are based on fiscal year.
Measure: Number of Local Permanent Housing Referrals 2 85 85 Notes: Figures shown are based on fiscal year.
Measure: Total number of Mental Health/Substance Abuse
Treatment Referrals 221 225 228
Notes: Figures shown are based on fiscal year.
Projected actuals for the number of unique individuals contacted by CAT and the number of local permanent housing referrals are much higher than anticipated for FY 2025-26. This increase is a direct result of increased CAT staff, which includes the Licensed Psych Technician (contracted with the County of San Luis Obispo Behavioral Health) and a Community Service Officer. Adding these positions to CAT has allowed for increased outreach.
111
Department Summary Public Works
Public Works and Utilities (Public Works Branch)
Department Summary
On November 18, 2025, City Council approved the consolidation of the individual Public Works and Utilities Departments, creating a single Public Works and Utilities Department. As this merger occurred partway through a fiscal year, and many aspects of these departments are not yet fully joined, this document will separately represent the budgetary aspects of the Public Works Branch and the Utilities Branch of the department.
The core function of the Public Works Branch is to preserve and enhance City infrastructure for an accessible, safe, and inclusive community experience. The Public Works Administration program continues to work toward greater efficiencies for the entire department.
The Parks Maintenance program provides the community with safe facilities and well‐maintained parks, sport fields, and other landscaped areas. The Urban Forest program continues to maintain nearly 14,000 inventoried tree assets valued at over $39 million, and is doing its part to help the City meet its goal of planting 10,000 new trees by 2035.
The Swim Center Maintenance program continues to provide a safe and clean aquatic facility for the community’s use. The Facilities Maintenance program efficiently maintains approximately 242,000 square feet of buildings and plays a critical role in the oversight and delivery of CIP projects at City facilities.
Routine replacement of roll-up doors at fire stations and other City facilities, as well as the re-roof and other exterior improvements to the Parks & Recreation building, are planned for FY 2026-27.
The Streets and Sidewalk Maintenance program addresses sidewalk and pavement needs, conducts storm patrols during rain events, and manages trash, green waste, and metal recycling at the Corporation Yard.
The program also supports traffic control for events and emergencies and handles encampment cleanups throughout the City.
The Traffic Signals & Streetlighting program maintains safe operations through regular maintenance, repairs, and updates, including ADA upgrades and Pedestrian Hybrid Beacons.
The Fleet Maintenance program is responsible for purchasing, outfitting, maintaining, and repairing approximately 304 City-owned fleet assets. Additional responsibilities include emissions reporting; maintenance of the Corporation Yard fuel pumps, car wash, and backup generators; hazardous waste handling and disposal reporting; and parts inventory management. Staff complete approximately 55–65 preventative maintenance work orders each month, in addition to addressing unscheduled repairs and breakdowns.
The Fleet Maintenance program continues to support City operations while advancing the City’s fleet electrification goals. During the past year, the program purchased six (6) electric vehicle (EV) pickups, one (1) EV patrol vehicle, one (1) EV motorcycle, and an EV forklift telehandler for the Water Resource Recovery Facility (WRRF). Staff also oversaw the installation of three (3) new charging stations to support the growing electric fleet. The program will continue expanding its electrified fleet and supporting infrastructure in the coming year.
112
Department Summary Public Works
The CIP Project Engineering program continues to advance and deliver Capital Improvement Plan projects funded for design and construction. The program successfully delivered several legacy capital projectsthis year, including the Mid-Higuera Bypass Project, WRRF, and the Cultural Arts District Parking Structure. In FY 2026-27, staff will continue to advance several important projects, including construction of the new Righetti Community Park, a revitalization of Emerson Park, construction of city-wide broadband infrastructure, and the City’s annual paving project.
The Transportation Planning & Engineering program has continued its progress on cross-town traffic circulation enhancements and its ongoing implementation of the City’s Active Transportation Plan, in coordination with the Mobility Services Division and CIP Engineering Division. FY 2025-26 highlights included the completion of complete street improvements to Sacramento and Tank Farm Road as part of the 2025 Paving Project, advancement of the Higuera Complete Streets Project, and advancement of the California/Taft Roundabout Project. In FY 2026-27, staff will advance the Foothill Complete Streets and South Broad Street Complete Streets corridor planning efforts with the recent addition of a contract transportation planner, and construction of the Higuera Complete Streets and South & King Crossing Projects is expected to be complete by the end of FY 2026-27.
The Active Transportation program supports the Transportation and CIP teams in advancing key active transportation infrastructure projects. It also supports the Lead By Example (LBE) Employee Commute Campaign, promotes the ongoing Roll & Stroll bicycle and pedestrian education campaign, hosts sustainable transportation pop-up education and training events, and assists in supporting a potential future bikeshare pilot program.
Departmental Budget – General Fund
Staffing note: Development of the 2025-27 Financial Plan occurred in conjunction with labor negotiations with San Luis Obispo City Employees’ Association and the unrepresented bargaining groups. Contingencies for negotiated cost of living and benefits adjustments were included in a non-departmental cost center in FY 2025-26, leading to artificially high departmental staffing budget increases in FY 2026-27.
Actuals Budget Supplement
Public Works FY 2024-25 FY 2025-26 FY 2026-27
Staffing $ 10,375,919 $ 11,270,127 11,994,994
YoY Change 6% 9% 6%
Other Operating Expenditures 6,205,976 6,158,466 5,927,067 YoY Change 2% -1% -4%
Total $ 16,581,895 $ 17,428,593 $ 17,922,061
YoY Change 5% 5% 3%
113
Department Summary Public Works
Changes from Financial Plan
Staff are recommending the following ongoing changes to line items from the FY 2025-27 Financial Plan based on cost increases, which total $117,000 in FY 2026-27.
1. Parks - Janitorial Services($8,000). This will be used to fund contract increases, including CPI ($6,000), as well as the additional cost to provide janitorial services to the Mission Plaza facilities ($2,000).
2. Bottle Brush Trimming on Madonna Road ($1,000). This will be used to fund cost increases for this work, which entails bottle brush trimming along Madonna Road.
3. Steam Cleaning/Pressure Washing Increases ($17,000). This increase accounts for inflation and supports the increased frequency of pressure washing in the downtown area, which is needed to address food and beverage spills, human waste, and other periodic unforeseen maintenance needs that arise throughout the year. In addition to this operating budget increase, the proposed CIP also includes an increase to the Sidewalks and Pressure Washing account to support additional summer ficus berry cleaning efforts and economic development-related maintenance requests.
4. Weed Abatement ($2,000). This accounts for actual cost increases based on current trends as well as the additional areas that require this service in Righetti Ranch.
5. Asphalt Mix/Road Repair/Bonding Agents ($5,000). This will help mitigate rising oil costs that are affecting asphalt and other pavement materials.
6. Fuel Cost Increases ($84,000). This will likewise mitigate fuel cost increases that are sharply rising.
This represents a 20% increase from FY 2025-26 budget.
Staff are also recommending the following ongoing budget additions to address critical safety and liability concerns.
1. Vehicle Telematics in City Fleet (General Fund) ($38,000). This will reduce liability by providing exact, accurate vehicle information and driving behavior at the time of accidents, which can assist with claim and lawsuit defense by removing speculation and alleged allegations. It provides cost savings through emissions reporting and real-time diagnostics. The Utilities Branch has made a similar request for vehicles funded by the Water and Sewer enterprise funds.
2. Electrical Panel Inspections ($12,000). Annual, preventative maintenance inspections on large panels by a licensed electrician with proper NFPA 72 protection will assist in identifying issues prior to catastrophic failure, which can result in a serious safety concern and leave facilities without power for long periods of time.
Additionally, negotiated cost of living adjustments and other staffing changes that took effect in FY 202526 were not factored into the staffing budget, so the FY 2026-27 budget reflects two years of increases. 114
Department Summary Public Works
Performance Measures
Objective: Enhance safe and efficient transportation
Strategic Goal: Proactively enhance safety by providing a system of safe, reliable, and well-maintained roadways, sidewalks, traffic signals and streetlights.
2025-26
Target
2025-26
Projected Actual
2026-27
Target
Measure: Pavement Condition Index (PCI) 70 74 70
Measure: Bicycle network total miles (Class I/II/III/IV) 14.6/28.6/24.9/5.4 14.6/31.0/24.9/3.0 14.6/26.2/26.9/7.8 Measure: Street miles maintained 144 144 144
Measure: Citywide fatal and severe injury crashes (latest annual total/5-year running average) 18/17.6 23/19.6 16/15.7 Actual bicycle network miles completed for 2025-26 are below initial targets established for this year because (a) final designs for Tank Farm Road as part of the 2025 Paving Project did not include Class IV (protected) bike lanes as initially contemplated due to concerns from emergency services, and (b) the Higuera Complete Street Project, which was initially planned to be in construction in 2025 was deferred to a 2026 construction start. While noteworthy improvements to active transportation infrastructure were achieved in 2025-26 along Tank Farm Road and Sacramento Drive with the 2025 Paving Project, these improvements unfortunately are not fully reflected when reporting metrics in terms of net change in bicycle facility mileage by type.
The FY 2025-26 target for Citywide fatal and severe injury crashes is based on a 10% reduction and 202627 target is based on a 20% reduction from 2023 annual total and 2018-2023 5-year averages. Annual and 5-year running averages for fatal/severe injury crashes remain above targets initially established for 202526. The City’s Vision Zero Action Plan, scheduled for final Council consideration in May 2026, includes a comprehensive series of recommendations to address these concerning safety trends; however, the ability to implement the Plan recommendations will be dependent on engineering and enforcement staffing and financial resources. Key factors contributing to an influx in fatal/severe injury crashes include intoxicated/distracted driving, illegal speeding, and failure to yield right-of-way to pedestrians and cyclists. Several prominent capital improvement projects are currently in progress that will advance key engineering recommendations of the Vision Zero Action Plan for high-crash corridors, including the Higuera Complete Street Project, South/King Crossing Project, California/Taft Roundabout Project, and forthcoming South Broad Street and Foothill Complete Street Projects. 115
Department Summary Public Works
Objective: Effectively manage City assets
Strategic Goal: Provide core services to the community with particular focus on Enhanced Downtown Maintenance and providing maintenance services for recently constructed development projects that are ready to be assumed into the City’s inventory for maintenance; continue to use Ask SLO as a tool to respond to community needs.
2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Public Works Maintenance Division Ask SLO
requests addressed 1,660 1,713 1,660
Measure: # of trees maintained 13,579 13,499 13,679
The projected FY 2025-26 value for Ask SLO requests is based on daily volume of Maintenance requests.
This number is challenging to forecast, but is not expected to decrease as increasing numbers of residents use Ask SLO.
The urban forest number of managed trees has been aligned with the Public Works Maintenance Division's scope of services. Many trees in the City’s open space have been removed from the Urban Forest Services maintenance metrics, as these trees are maintained by the Parks and Recreation Department’s Ranger Services Program. The program will target 100 new tree plantings annually, with young tree care provided by volunteers or community partners. The Urban Forestry crew planted nearly 50 new trees in 2025-26; however, a majority of these trees were to replace dead or removed trees, which were already accounted for in the inventory. Volunteer street tree planting efforts continue through ECO SLO, but there is a delay in adding these plantings to the City’s inventory because initial care and watering are completed by volunteers.
Objective: Plan and develop critical infrastructure
Strategic Goal: Invest in critical infrastructure with the focus of delivering legacy projects to the community. 2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Total # of projects managed 65 65 42
The CIP Engineering Team manages a variety of capital projects with diverse funding sources and originating from multiple departments. The 2025-27 CIP prioritizes funding for projects that can be realistically delivered within that timeframe. As a result, the project load in FY 2026-27 is intentionally reduced to align with available staffing and resources. 116
Department Summary Public Works
Parking Fund
Fund Summary
The Parking Services program continues to execute its Technology Roadmap. New, easy-to-use on-street pay stations, a single mobile app, improvements to existing garage gating equipment, and improved payment systems have streamlined the parking experience, while the 397-space Cultural Arts District Parking Structure (CADPS), completed in March 2026, significantly increases the number of affordable parking spaces in downtown.
In the coming year, Parking Services will continue to digitize parking permits, replace single-space meters with updated, user-friendly pay stations, and evaluate and refresh downtown curb markings and signage.
The program will also advance the design and installation of enhanced security features in the parking garages.
Changes from Financial Plan
Staff are recommending the following ongoing SOBCs:
1. Increase Credit Card Merchant Fees ($80,867). This change funds the additional Credit Card Merchant Fees anticipated alongside the additional revenue of the CADPS.
2. Consolidate Five (5) Part-Time Parking Compliance Officer (PCO) Positions to Two (2) Full-Time Parking Compliance Officer I positions ($14,731). This change supports compliance with Assembly Bill 14841
, and addresses growing capacity challenges of several new timed parking areas and an expansion of an existing parking district. The additional stability of full-time PCO’s working 10-hour shifts would provide greater coverage year-round. 1 Assembly Bill 1484, which became effective January 1, 2024, requires temporary employees who have been hired to perform the same or similar type of work that is performed by represented permanent employees be automatically included in the same bargaining unit as permanent employees. 117
Department Summary Public Works
Fiscal Analysis – Revenue
Parking Fund revenue is forecasted to increase 9% in FY 2026–27, driven by the opening of the new Cultural Arts District Parking Structure (CADPS) and revenues performing in line with projections from the 2024 Parking Rate Study. The forecast also includes a minor correction to employee parking revenue assumptions to reflect the current permit rate of $45 per month, rather than the $85 per month previously included in the adopted Financial Plan. This adjustment is reflected in “Other Revenue.” In addition, technology upgrades identified in the Technology Roadmap — including new payment equipment in parking garages and at on-street locations, as well as mobile pay improvements — have now been fully implemented and are operating as anticipated.
Parking meter revenue reflects hourly parking activity across on-street and surface lot spaces, including mobile app payments, and has been supported by the installation of new payment equipment in November 2025. Parking garage revenue has also improved following the installation of new gating equipment at the start of FY 2025–26, which is functioning as intended and resolving prior equipment failures that impacted revenue. Continued growth is anticipated with the opening of the CADPS, consistent with projections in the Financial Plan. Long-term parking revenue, which includes on-street, residential, and garage permits, has increased following the reduction in garage permit rates effective July 1, 2024, with sales expected to continue rising. Additional growth is anticipated with the expansion of the digital permit platform in April 2026 to include 10-hour on-street permits, along with updated accounting to more accurately reflect staff permit revenue.
Parking fines revenue includes all paid citations and reflects the implementation of a new citation management system in March 2025. Based on current trends, no changes from the Financial Plan are recommended.
Other revenue sources, including investment interest and rent and lease revenue, are performing as expected. Investment income is projected to remain minimal due to reduced cash balances following completion of the CADPS construction project, while rent and lease revenue continues to align with existing agreements and typical end-of-year collection patterns. No adjustments to these categories are recommended.
Actuals Budget Supplement
Parking Fund FY 2024-25 FY 2025-26 FY 2026-27
Meters $ 4,589,728 4,312,367$ $ 4,312,367
YoY Change -23% -6% 0%
Structures 1,886,338 2,860,504 3,687,079
YoY Change 7% 52% 29%
Long-Term Parking 522,895 500,000 500,000
YoY Change -26% -4% 0%
Fines 1,113,016 1,231,100 1,276,500
YoY Change -6% 11% 4%
Other Revenue 183,827 151,384 123,184
YoY Change 115% -18% -19%
Total Revenue $ 10,783,966 9,575,956$ $ 10,444,030
YoY Change -19% -11% 9%
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Department Summary Public Works
Fiscal Analysis - Expenditures
No budget reductions were made to the Parking Fund’s Financial Plan baseline as part of the Council’s recommendations in March. Parking Fund operating expenditures are proposed to increase by 5% due to previously-approved staffing adjustments and the two SOBCsreferenced above. The Parking Program was able to re-allocate existing funding within the constrained base budget to offset all other identified increases, including inflationary adjustments, utility increases, and CADPS maintenance and service costs.
Additionally, negotiated cost of living adjustments and other staffing changes that took effect in FY 202526 were not factored into the staffing budget, so the FY 2026-27 budget reflects two years of increases.
Capital expenditures will decrease sharply with the completion of the CADPS project.
Parking Fund – Long Term Forecast
The long-term forecast continues to show a return to forecasted revenues as a result of the changes recommended by the Technology Roadmap. With the completion of new parking structure gating equipment and implementation of new citation management software leading into FY 2025-26, and the completion of the Cultural Arts District Parking Structure in March 2026, revenue projections remain unchanged.
It should be noted that the revenue projections for the "Parking Structures” for the years FY 2025-26 to FY 2028-29 are based on revenue forecasts of the 2024 Parking Rate Study which assume that occupancy of the new Cultural Arts Parking Garage will realize similar per space revenue as the other three existing garages now that it is open. However, actual occupancy may vary due to factors such as increased parking demand in that area and decreased demand at other garages. Should occupancy or demand for the new garage differ significantly from projections, staff will adjust budgets accordingly through future financial planning cycles.
Planned upcoming Capital Improvement Plan Projects this fiscal year include garage security updates to Actuals Budget Supplement
Parking Fund FY 2024-25 FY 2025-26 FY 2026-27
Staffing $ 2,109,475 $ 2,199,851 $ 2,552,926
YoY Change 6% 4% 16%
Other Operating Expenditures 1,707,291 1,750,531 1,837,748 YoY Change -7% 3% 5%
Transfers 1,632,053 1,720,732 1,788,802
YoY Change 18% 5% 4%
Capital Expenditures 27,151,937 2,146,465 527,292
YoY Change 31% -92% -75%
Debt Service Costs 3,492,373 3,696,534 3,593,491
YoY Change 16% 6% -3%
Total Expenditures $ 36,093,130 $ 11,514,112 $ 10,300,258 YoY Change 25% -68% -11%
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Department Summary Public Works
install perimeter fencing around the top levels and security cameras throughout the garages and the purchase of additional pay stations to remove the existing single-space parking meters. Overall, projected unreserved working capital remains healthy in the outer years of the forecast, which will be available to support capital needs in the future.
With the completion of the CADPS in FY 2025-26, Unreserved Year-End Working Capital returns to standard levels, as compared with the FY 2024-25 Unreserved Year-End Working Capital balance, which reflects the one-time influx of $47 million in debt proceeds in FY 2023-24 received for this project.
The Long-Term Forecast table below includes the previously referenced SOBCs. 120
Department Summary Public Works
Transit Fund
The Transit program received two (2) additional battery electric buses in April 2026. Once these buses are in service in the fall of 2026, almost 60% of SLO Transit’s fleet will be zero‐emission, which places the City well ahead of the state’s zero‐emission mandates. Expansion of charging infrastructure at the Transit Yard is currently underway and, once completed, will support the operation of SLO Transit’szero-emission fleet vehicles. A new contract for transit operation and maintenance services goes into effect on July 1, 2026.
The scope of services includes implementation of the following Short-Range Transit Plan (SRTP) recommendations: additional trips on Routes 4A/B, and operation of “B” Routes on weekends. The remaining SRTP recommendations will be implemented later in the upcoming contract term, subject to the availability of funding, vehicles, and staffing. Ridership has increased by an average of 12% each year for the past four years. As SLO Transit service levels have returned to pre-pandemic operations, and if this growth trend continues, overall ridership is projected to return to pre-pandemic levels in a little over two years.
Changes from Financial Plan
Staff is requesting two SOBCs as a result of the Transit Program’s new operator contract and rising fuel costs:
1. Purchased Transportation – New Contract Estimated Costs ($82,830). This addition reflects the estimated additional cost of the bus operator contract, which was approved by Council in April 2026.
2. Fuel ($175,782). Staff have reallocated net savings to mitigate this increased fuel costs anticipated in FY 2026-27. This amount of $175,782 reflect the additional budget staff expects to need.
Fiscal Analysis – Revenue
Transit Fund revenues are forecasted to increase by 20% in FY 2026-27, in alignment with anticipated revised expenditures. Transit Fund charges for service revenues are proposed to increase year over year Actuals Financial Plan
Transit Fund FY 2024-25 FY 2025-26 FY 2026-27
Bus Fares $ 234,855 $ 260,000 $ 285,200
YoY Change -6% 11% 10%
Cal Poly Transit 750,000 750,000 750,000
YoY Change 0% 0% 0%
Federal Grants 8,859,273 8,254,281 8,891,277
YoY Change 154% -7% 8%
State Grants 1,360,509 2,733,722 4,505,787
YoY Change -15% 101% 65%
Other 998,813 30,455 30,807
YoY Change 163% -97% 1%
Total Revenue $ 12,203,451 $ 12,028,459 $ 14,463,072
YoY Change 88% -1% 20%
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Department Summary Public Works
by about $20,000 or 2% as total passenger trips continue to increase year over year post-pandemic. In April 2024, Council approved a new three‐year agreement with Cal Poly for transit services at the same annual amount of $750,000, which is reflected in the budget.
Fiscal Analysis – Expenditures
No budget reductions were made to the Transit Fund’s Financial Plan baseline as part of the Council’s recommendations in March. Staffing expenditures are forecasted to increase 21% in FY 2026-27 due to the negotiated cost of living adjustments and other staffing changes that took effect in FY 2025-26, which were not factored into the staffing budget. As a result, the FY 2026-27 budget reflects two years of increases. Transit Fund operating expenditures are proposed to increase by 23% in FY 2026-27 primarily due to anticipated and sustained increases in fuel costs driven by changes in the global oil supply and the additional costs of the new operator contract. The Transit Program was able to re-allocate existing funding within the constrained base budget to offset all other identified increases, including inflationary adjustments, utility increases, and replacement of major vehicle components. Capital expenditures in FY 2026-27 are primarily driven by the planned purchase of three (3) new EV buses (replacing diesel buses that are beyond their useful life) and the procurement and installation of charging infrastructure to support them. The Transit Program is funded through a combination of federal, state, and local sources which will be used to cover the increase in operating expenditures.
The future of federal transit funding is uncertain due to the expiration of the Infrastructure and Investment Jobs Act (IIJA) this fiscal year which provided a substantial, multi-year investment in the nation’s infrastructure and transportation as well as evolving restrictions on the use of competitive federal funds for low- and no-emission capital purchases. The Transit Fund is reliant upon both formula and competitive federal funds to cover operating and capital expenses. If future federal funding availability is significantly reduced, then the Fund would utilize Transportation Development Act fund reserves allocated to the City in prior fiscal years to cover immediate expenses. Depending on the severity of the funding shortfall, staff would present to Council for consideration capital project deferments and possibly Actuals Budget Supplement
Transit Fund FY 2024-25 FY 2025-26 FY 2026-27
Staffing $ 393,432 $ 387,257 $ 468,159
YoY Change 1% -2% 21%
Other Operating Expenditures 4,992,796 5,604,933 6,901,921 YoY Change 24% 12% 23%
Transfers 460,609 467,804 391,973
YoY Change -1% 2% -16%
Capital Expenditures 6,324,995 3,155,719 6,699,292
YoY Change 279% -50% 112%
Total Expenditures $ 12,171,832 $ 9,615,713 $ 14,461,345 YoY Change 86% -21% 50%
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Department Summary Public Works
operating budget reductions to maximize use of reserves until new and sustained funding sources can be identified and secured.
Objective: Encourage sustainable transportation
Strategic Goal: Implement sustainable transportation objectives from the Short-Range Transit Plan and the Active Transportation Plan including frequency and service of transit, as well as trail, pedestrian, and bicycle improvements and street enhancements to uphold traffic safety. 2025-26
Target
2025-26
Projected
Actual
2026-27
Target
Measure: Annual SLO Transit Ridership 663,900 717,200 734,182 FY 2025-26 and FY 2026-27 targets are based on the Short-Range Transit Plan projections. Staff continues to see ridership steadily increase. All fixed route services have been restored as of January 2026, and student ridership continues to drive this trend.
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Department Summary Public Works
Transit Fund Long-Term Forecast
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Department Summary Public Works
The Transit Fund is able to cover all current and forecasted operating and capital costs with support from Federal and State funding sources. Operating costs are projected to steadily increase over the next few years primarily due to anticipated increases in the costs of contracted services and supplies. If significant changes occur in the reliability of State or Federal funding sources, deferral of planned service expansions and possible reductions in existing services may be required. Staff will continue to submit reimbursements for existing, awarded grants and will continue to apply for new grants to fund future operating costs and capital projects. The Long-Term Forecast above includes expenses for the proposed SOBCs. 125
Department Summary Utilities
Public Works and Utilities (Utilities Branch)
Department Summary
On November 18, 2025, City Council approved the consolidation of the individual Public Works and Utilities Departments, creating a single Public Works and Utilities Department. As this merger occurred partway through a fiscal year, and many aspects of these departments are not yet fully joined, this document will separately represent the budgetary aspects of the Public Works Branch and the Utilities Branch of the department.
The Utilities Branch oversees two Enterprise Funds (Water and Sewer), an Agency Fund (Whale Rock), and the Stormwater and Solid Waste and Recycling programs which are held in the General Fund. The Solid Waste and Recycling budget is funded by AB 939, which are restricted to waste diversion activities. In addition to the Water and Sewer Funds, the Utilities Branch also manages the Whale Rock Fund, which is overseen by the Whale Rock Commission (with representatives for the City of San Luis Obispo, Cal Poly, and California Men’s Colony). The City’s share of operational expenses and capital project contributions for Whale Rock operations are budgeted through the Water Fund’s Source of Supply budget.
Utilities Branch Programs
Fund Fund Type Programs Funded Notes
Water
Fund
Enterprise
Fund
Administration and Engineering
Source of Supply
Water Treatment
Water Distribution
Water Resources
Utility Billing
The City’s water operations are paid for by
water service rate revenues and cover all
costs for operations, maintenance,
infrastructure replacement, and debt
service. Taxes, including utility user taxes,
do not support these services.
Sewer
Fund
Enterprise
Fund
Administration and Engineering
Wastewater Collection
Environmental Programs
Water Resource Recovery
Water Quality Lab
Utility Billing
The City’s sewer operations are paid for by
sewer service rate revenues and cover all
costs for operations, maintenance,
infrastructure replacement, and debt
service. Taxes, including utility user taxes,
do not support these services.
Whale
Rock Fund Agency Fund Reservoir Operations The Whale Rock Fund is overseen by the Whale Rock Commission.
General
Fund
General
Fund
Solid Waste and Recycling
Stormwater
The Solid Waste program is paid for by AB
939 and Franchise fee funding. AB 939
funds may only be used to pay for activities
that divert waste from landfills. The
Stormwater program manages compliance
with federal and state stormwater
regulations through inspections,
permitting, and enforcement.
The following sections review changes from the 2025-27 Financial Plan, performance measures, and summarized financial positions by fund.
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Department Summary Utilities
Changes from Financial Plan
Staff are recommending six changes from the 2025-27 Financial Plan. Three of these changes are tied to pass-through cost increases for existing goods and services. Two changes are tied to staffing requirements resulting from staff turnover and regulatory requirements. The remaining change is related to strategic expenditure reductions brought to Council on March 3, 2026 (Item 6b). These are summarized in the table below.
Changes from Financial Plan
Short Description Justification Amount
Stormwater Software Licensing and
Office Supplies. These budgets have
historically funded resources that
facilitate staff management of
stormwater assets.
General Fund Expenditure Reduction.
This matches the strategic budget
reductions brought to Council on March
3, 2026 (Item 6b).
($6,500)
Biosolids Hauling Contract. Biosolids
hauling is the process of transporting
treated wastewater solids (biosolids)
from the Water Resource Recovery
Facility (WRRF) to off-site locations
for disposal, beneficial reuse, or
further treatment.
Pass-through Expense. On December 2,
2025 (Item 5g), Council authorized staff
to advertise the RFP for biosolids hauling
at the WRRF. The lowest qualified
proposer submitted a 21% increase on
current rates, plus relevant fuel
surcharges.
$150,000
AMI Cellular Service. Monthly service
enabling automated, remote
transmission of water meter data.
Pass-through Expense. In August 2025,
staff secured heavily discounted AMI
meters and radios, avoiding
approximately $922,000 in one-time
costs. As a condition of this purchase,
the City began paying cellular service in
advance of installation. As meters are
deployed, these costs are partially offset
by a reduction in monthly charges of
$0.50 per meter due to reduced manual
reading expenses.
$85,000
Source of Supply Revisions. Funding
for the City’s share of operations,
capital improvements, and debt
service associated with the Salinas,
Nacimiento, and Whale Rock
Reservoirs.
Pass-through Expense. While the City
adopts a two-year financial plan, partner
reservoir budgets are approved annually
and may change based on operational
and regulatory needs. As a result,
second-year cost estimates are subject
to adjustment. The current increase is
primarily driven by required capital
improvements to maintain dam safety
compliance under the California Division
of Safety of Dams at the Whale Rock
Reservoir.
$612,769
Contract T5 Operator. The City’s Regulatory Compliance. DDW requires $215,000 127
Department Summary Utilities
Short Description Justification Amount
Water Treatment Plant (WTP) is
regulated by the California State
Water Resources Control Board,
Division of Drinking Water (DDW),
and is classified as a Treatment Grade
5 (T5) facility, which is the highest
level of treatment complexity
recognized by the State. The only T5
Operator that the City employs has
stated their intent to resign from their
position, requiring backfill of this
position by a contract operator until
the recruitment process concludes in
a hire for the permanent position.
that a T5 Operator be continuously
available to support operations, direct
process control decisions, and ensure
compliance with regulatory
requirements. Due to the criticality of
this service, staff have already received
City Manager authorization to proceed
with this contract through San Luis
Obispo Municipal Code 3.24.060, which
allows for the dispensation of purchasing
requirements when reasonably
necessary for health and safety. This
budget request includes T5 Operator
coverage of the WTP through October
31, 2026, to allow staff sufficient time to
recruit a permanent replacement for the
vacated position while remaining in
compliance with DDW requirements.
Addition of a Utilities Special Projects
Manager to complete capital
projects. And reduction of FTE for the
Public Works and Utilities
Department merger.
Regulatory Compliance and Department
Structural Change. An additional Utilities
Special Projects Manager position is
requested to strengthen the Branch’s
capacity to manage and deliver capital
and special projects, conduct
development review of increasingly
complex entitlements, while meeting
increasing regulatory reporting
requirements. Recent turnover in key
management and supervisorial positions
within the Utilities Branch has further
underscored the need for dedicated
project and program support to ensure
operational focus on the Branch’s key
mission to deliver essential water and
wastewater services, maintain
continuity, meet compliance obligations,
and reduce delivery risk.
The estimated fiscal impact for a Special
Projects Manager is $162,000. And
when combined with the approved
consolidation of the Public Works and
Utilities Departments (Item 6f,
November 18, 2025), this results in an
estimated cost of $266,000. This
$266,000 amount includes the actual
$0
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Department Summary Utilities
Short Description Justification Amount
updated fiscal impacts from the
reduction of a management position
associated with the Public Works and
Utilities Department merger (elimination
of the vacant Financial Analyst position
in Utilities). To minimize the fiscal impact
associated with this SOBC, the Utilities
Branch has identified full offsetting nonpersonnel expenditure reductions through operational efficiencies.
Notable examples of these operational
expenditure reductions include a
$131,000 reduction in electricity costs,
driven by infrastructure improvements
and operational changes that optimize
peak demand and time-of-use rates, and
a $62,000 reduction in advertising and
outreach costs that align with Utilities
increased use of less costly digital media
and in-house services (there are no
anticipated impacts on the ability of the
Utilities branch to carry out educational
and engagement activities). The
remaining $73,000 came from a variety
of smaller expenditure reductions.
Performance Measures
Objective: Maintain and manage infrastructure, assets, and facilities responsibly and transparently.
Strategic Goal: Public Stewardship
2025-26
Target
2025-26
Projected
2026-27
Target
Measure: Sanitary Sewer Overflows per 100 miles of publicly-owned sewer main 0 6.08 0 Measure: Breaks/leaks per 100 miles of water main <13.4 6.81 <13.4 Sanitary Sewer Overflows (SSOs) per 100 miles of publicly-owned sewer main exceed the 2025-26 target due to aged infrastructure with conditions that are exacerbated by climate change (drought-related root intrusion) and consumer habits tied to restaurant activity (use and disposal of fats, oils, and grease). While the target remains zero, staff are optimistic that ongoing success of the City’s private sewer lateral programs, pretreatment program, and expansion of remote monitoring systems will continue the trend of reducing SSOs that will maintain this Key Performance Indicator (KPI) near zero.
Breaks/leaks per 100 miles of water main remain on track with internal metrics and industry standards. 129
Department Summary Utilities
Objective: Provide the Community with High Quality and Reliable Service Strategic Goal: Public Service
2025-26
Target
2025-26
Projected
2026-27
Target
Measure: Recycled Water Delivered in acre-feet (AF) 375 271 395 Measure: Number of customers who have set up an online profile to view their real‐time water usage 1,000 850 1,600
Recycled Water Delivered (AF) is primarily driven by customer irrigation demand and expansion of the existing recycled water system for new development. Recent recycled water demand illustrates this variability:
CY 2022: 291 AF
CY 2023: 274 AF
CY 2024: 353 AF
CY 2025: 261 AF
Recycled water delivery will remain inherently variable due to weather patterns, customer demand characteristics, and development activity.
The number of customers who have set up online profiles to view real-time water usage is trending below the FY 2025–26 target due to the promotion of three Water Meter and Radio Installation Technicians into new roles within the City. These promotions have helped fill critical vacancies in the Water Distribution and Reservoir Operations programs, supporting service continuity, but have temporarily reduced capacity for advanced metering infrastructure (AMI) deployment previously implemented by these Technicians.
As of April 14, 2026, 5,317 AMI meters have been installed, with 795 active customer accounts. This represents an approximate 15% adoption rate of EyeOnWater, the City’s water monitoring application.
Adoption is expected to increase as installation capacity is restored and customer outreach continues.
Objective: Enhance Accessibility and Equity in Services Strategic Goal: Public Service
2025-26
Target
2025-26
Projected
2026-27
Target
Measure: Minimize Customer Shut‐Offs for Non-payment <400 444 <400 Measure: Number of water/sewer customers enrolled in the customer assistance program (low‐income program) 465 282 500
The number of customer shut-offs for non-payment is currently at 333 through March 31, 2026. On average there have been 37 shutoffs for non-payment per month. The process for notification before shutoff includes an insert with the bill prior to shutoff, two phone trees, a courtesy email after the first phone tree, and a door tag if the first phone tree failed to achieve contact. Customers are afforded one payment plan or extension in a year.
The number of water and sewer customers enrolled in the Customer Assistance Program is trending below the FY 2025–26 target, but has increased substantially in recent years. Enrollment by fiscal year is as follows:
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Department Summary Utilities
FY 2021-22 Actual: 173
FY 2022-23 Actual: 163
FY 2023-24 Actual: 179
FY 2024-25 Actual: 216
FY 2025-26 Forecasted: 282
This reflects a 63% increase over five years. The increase was largely facilitated by Council adoption of Resolution No. 11552 (March 18, 2025), which established the 2025 Integrated Solid Waste Rates and by extension a customer assistance program for those customers. The establishment of the solid waste customer assistance program allowed staff to streamline outreach efforts across both assistance programs.
General Fund
Fund Summary
The Utilities Branch of the Public Works and Utilities Department manages Solid Waste and Recycling and Stormwater programs, which are both General Funded.
The Solid Waste and Recycling Program budget is supported by AB 939 (Solid waste management, source reduction, recycling, composting, and market development). The Program plans, implements, and oversees waste reduction, recycling, and organics initiatives to meet local and state regulatory requirements and diversion goals. Key functions include contract administration with the solid waste franchisee, rate and fee oversight, compliance monitoring and enforcement, and required reporting to regulatory agencies. The Program also emphasizes public education and outreach, infrastructure planning, and coordination with regional partners to support long-term sustainability and zero waste objectives.
The Stormwater Program is primarily driven by federal and state regulatory requirements, including the Municipal Separate Storm Sewer System (MS4) permit, Construction General Permits, and Industrial General Permits. The Program develops, implements, and oversees activities to protect water quality through compliance monitoring, inspection and enforcement, and required regulatory reporting. Key functions include coordination with City departments and external agencies, administration of contracts and projects, and development of policies and procedures to meet evolving regulatory standards. The Program also emphasizes public education, pollution prevention, and long-term planning to support environmental protection and regulatory compliance.
Departmental Budget – General Fund
Actuals Budget Supplement
Utilities FY 2024-25 FY 2025-26 FY 2026-27
Staffing $ 1,171,743 $ 1,182,122 1,334,763
YoY Change -2% 1% 13%
Other Operating Expenditures 363,061 199,541 191,590
YoY Change -20% -45% -4%
Total $ 1,534,804 $ 1,381,663 $ 1,526,353
YoY Change -7% -10% 10%
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Department Summary Utilities
Staffing note: Development of the 2025-27 Financial Plan occurred in conjunction with labor negotiations with San Luis Obispo City Employees’ Association and the unrepresented bargaining groups. Contingencies for negotiated cost of living and benefits adjustments were included in a non-departmental cost center in FY 2025-26, leading to artificially high departmental staffing budget increases in FY 2026-27.
Changes from Financial Plan
The Staffing budget increased by $153,000 because the 2025-27 Financial Plan was developed before Resolution No. 11579, Resolution No. 11580, and Resolution No. 11581were approved. These resolutions established the Memoranda of Understanding between the San Luis Obispo City Employees’ Association, Unrepresented Management, and Confidential Employees.
The operating budget decreased by $6,500, consistent with the strategic budget reductions brought to Council on March 3, 2026 (Item 6b). These reductions reflect reductions in software licensing and office supplies, which have historically funded resources that facilitate staff management of stormwater assets.
Water Fund
Fund Summary
The Water Fund supports six programs. These are described in more detail below.
Administration and Engineering
Supports overall management, planning, engineering, and administrative functions necessary to operate and maintain the City’s water system, including capital project delivery and regulatory coordination.
Source of Supply
Funds the City’s pass-through costs for raw water supplies from the Salinas, Nacimiento, and Whale Rock Reservoirs, including associated operations, capital, and debt obligations.
Water Treatment
Funds the operation, maintenance, and regulatory compliance of the City’s water treatment facilities to ensure safe and reliable drinking water.
Water Distribution
Supports the operation, maintenance, and repair of the City’s water distribution system, including pipelines, valves, hydrants, and storage facilities.
Water Resources
Funds long-range water supply planning, conservation programs, groundwater and surface water management, and regulatory compliance efforts related to water resources.
Utility Billing
Supports meter reading, billing, customer service, and revenue collection activities necessary to administer water utility services.
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Department Summary Utilities
Changes from Financial Plan
Fiscal Analysis - Revenue
Increases in budgeted Water Sales and Base Charges are consistent with Council-approved rate adjustments adopted under Resolution No. 11582. The decrease in budgeted Other Revenue reflects the timing of Proposition 1B grant reimbursements supporting the City’s Groundwater Cleanup Project. Based on the current project schedule, grant disbursements are anticipated to be lower than budgeted in FY 2025–26 and higher than budgeted in FY 2026–27. These timing differences do not affect the overall funding expected for the project.
Water Fund FY 2024-25 FY 2025-26 FY 2026-27
Water Sales $ 21,379,368 $ 21,449,631 $ 22,740,826
YoY Change 12% 0% 6%
Base Charges 7,650,544 8,448,140 8,984,090
YoY Change 9% 10% 6%
Setup Fees 125,561 160,000 160,000
YoY Change -35% 27% 0%
Other Revenue 6,972,868 4,351,680 293,606
YoY Change 144% -38% -93%
Total Revenue $ 36,128,340 $ 34,409,452 $ 32,178,522
YoY Change 24% -5% -6%
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Department Summary Utilities
Fiscal Analysis – Expenditures
The Staffing budget increased by $440,000 because 1) the 2025-27 Financial Plan was developed before Resolution No. 11579, Resolution No. 11580, and Resolution No. 11581were approved and 2) the costs associated with one staffing request by the Utilities Branch. These resolutions established the Memoranda of Understanding between the San Luis Obispo City Employees’ Association, Unrepresented Management, and Confidential Employees. The one staffing request is an additional Utilities Special Projects Manager to support capital project delivery, regulatory reporting, and strategic program initiatives. The Utilities Branch is also reducing one management position consistent with Item 6f on November 18, 2025, which consolidated and restructured the Public Works and Utilities Departments. These staffing changes will be funded primarily through operational efficiencies resulting in expenditure reductions and will be a shared expense between the Water and Sewer Funds.
The $2.9 million reduction in Other Operating Expenditures in FY 2026–27 reflects the timing of the City’s one-time contribution toward capital improvements at the Salinas Reservoir. These costs are incurred in the prior fiscal year and do not continue into FY 2026–27.
Long Term Forecast
The Water Fund is projected to remain in a stable financial position over the forecast period, with revenues and expenditures generally aligned to support ongoing operations and capital needs. Minor year-to-year fluctuations are expected and reflect the timing of planned activities rather than structural imbalances. Notably, the increase in Other Revenue in FY 2027–28 is associated with an anticipated debtfinanced capital project and does not represent ongoing revenue. Additionally, the decrease in operating expenditures in FY 2026–27 is primarily attributable to upfront contributions made in the prior year for dam safety improvements at the Salinas Reservoir. These timing-related adjustments are incorporated into the forecast and do not materially impact long-term fund stability. Overall, the Water Fund is expected to maintain adequate reserves and continue to meet operational and capital obligations. The long-term financial forecast is provided in the table below.
Actuals Budget Supplement
Water Fund FY 2024-25 FY 2025-26 FY 2026-27
Staffing $ 5,495,997 $ 6,214,757 $ 6,654,708
YoY Change 1% 13% 7%
Other Operating Expenditures 15,015,367 20,859,920 17,913,253 YoY Change 18% 39% -14%
Transfers 2,947,417 2,819,038 2,416,517
YoY Change 1% -4% -14%
Capital Expenditures 8,858,790 8,265,632 5,770,043
YoY Change 8% -7% -30%
Debt Service Costs 1,762,421 1,865,911 1,855,405
YoY Change 0% 6% -1%
Total Expenditures $ 34,079,992 $ 40,025,258 $ 34,609,926 YoY Change 10% 17% -14%
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Department Summary Utilities
Water Fund Long-Term Forecast
(A)
Actual
2024-25
(B)
Financial Plan
2025-26
(C)
Budgeted
2026-27
(D)
Projected
2027-28
(E)
Projected
2028-29
REVENUE
Total Charges for Service $ 29,155,473 $ 30,057,771 $ 31,884,916 $ 33,854,643 $ 35,540,062 Total Other Revenue $ 9,203,258 $ 5,151,680 $ 1,093,606 $ 10,031,000 $ 1,031,000 Total Revenue1 $ 38,358,730 $ 35,209,451 $ 32,978,522 $ 43,885,643 $ 36,571,062
EXPENDITURES
Total Salaries and Benefits2 $ 5,495,997 $ 6,214,757 $ 6,654,708 $ 6,948,314 $ 7,156,764 Total Other Operating Expenditures $ 15,015,367 $ 20,859,920 $ 17,913,253 $ 18,327,809 $ 16,714,877 Total General Government $ 2,947,417 $ 2,819,038 $ 2,416,517 $ 2,503,705 $ 2,594,243 Total Debt Service $ 1,762,421 $ 1,865,911 $ 1,855,405 $ 1,854,858 $ 2,438,386 Total Operating Expenditures $ 25,221,202 $ 31,759,625 $ 28,839,883 $ 29,634,685 $ 28,904,269 Total Captial Asset Expenditures3 $ 8,858,790 $ 28,671,724 $ 5,770,043 $ 11,517,430 $ 5,970,520 Total Expenditures $ 34,079,991 $ 60,431,349 $ 34,609,926 $ 41,152,115 $ 34,874,788 Working Capital - Beginning $ 43,032,553 $ 47,311,292 $ 22,089,394 $ 20,457,990 $ 23,191,518 Change in Financial Position $ 4,278,739 $ (25,221,898) $ (1,631,404) $ 2,733,528 $ 1,696,274 Working Capital - Year End $ 47,311,292 $ 22,089,394 $ 20,457,990 $ 23,191,518 $ 24,887,791 Rate Stabilization Reserves (10%) $ 2,878,167 $ 2,973,092 $ 3,154,813 $ 3,350,833 $ 3,518,374 Operating Reserve (20%) $ 5,044,240 $ 6,351,925 $ 5,767,977 $ 5,926,937 $ 5,780,854 Other Reserves (i.e. Debt Reserves) $ 175,656 $ 175,656 $ 175,656 $ 175,656 $ 175,656 Unreserved Working Capital Year End $ 39,213,229 $ 12,588,721 $ 11,359,545 $ 13,738,092 $ 15,412,907 2025-27 Financial Plan
1. This line reflects impact fees accounted for outside the Water Fund but incorporated into overall financial position.
2. This line includes actual, budgeted, and forecasted CalPERS ADP.
3. Fiscal Year 2025–26 includes carryover capital projects. Expenditures may occur in different years than originally budgeted. 135
Department Summary Utilities
Sewer Fund
Fund Summary
The Sewer Fund supports six programs. These are described in more detail below.
Administration and Engineering
Supports overall management, planning, engineering, and administrative functions necessary to operate and maintain the City’s wastewater system, including capital project delivery and regulatory coordination.
Wastewater Collection
Funds the operation, maintenance, and repair of the City’s sewer collection system, including pipelines, pump stations, and related infrastructure.
Environmental Programs
Supports regulatory compliance programs, including industrial pretreatment and environmental monitoring to protect public health and water quality, and the City’s wastewater collection system and Water Resource Recovery Facility.
Water Resource Recovery
Funds the operation, maintenance, and regulatory compliance of the Water Resource Recovery Facility (WRRF), including wastewater treatment, biosolids handling, and recycled water production.
Water Quality Lab
Supports laboratory testing and analysis required to monitor water and wastewater treatment performance and ensure compliance with state and federal regulations.
Utility Billing
Supports meter reading, billing, customer service, and revenue collection activities necessary to administer wastewater utility services.
Fiscal Analysis - Revenue
Actuals Budget Supplement
Sewer Fund FY 2024-25 FY 2025-26 FY 2026-27
Service Charges $ 13,870,802 $ 14,836,162 $ 15,887,765
YoY Change 5% 7% 7%
Base Charges 5,850,432 6,244,610 6,703,713
YoY Change 6% 7% 7%
Other Revenue 3,989,601 321,000 321,000
YoY Change 8% -92% 0%
Total Revenue $ 25,023,194 $ 21,768,825 $ 23,320,050
YoY Change 5% -13% 7%
136
Department Summary Utilities
Increases in budgeted Service Charges and Base Charges are consistent with Council-approved rate adjustments adopted under Resolution No. 11584. These adjustments reflect previously authorized rate changes and are incorporated into the forecast accordingly. No additional rate modifications are assumed beyond those approved by Council.
Fiscal Analysis – Expenditures
The Staffing budget increased by $514,000 because 1) 2025-27 Financial Plan was developed before Resolution No. 11579, Resolution No. 11580, and Resolution No. 11581were approved and 2) the costs associated with one staffing request by the Utilities Branch. These resolutions established the Memoranda of Understanding between the San Luis Obispo City Employees’ Association, Unrepresented Management, and Confidential Employees. The one staffing request is an additional Utilities Special Projects Manager to support capital project delivery, regulatory reporting, and strategic program initiatives. The Utilities Branch is also reducing one management position consistent with Item 6f on November 18, 2025, which consolidated and restructured the Public Works and Utilities Departments. These staffing changes will be funded primarily through operational efficiencies resulting in expenditure reductions and will be a shared expense between the Water and Sewer Funds.
The approximately $136,000 decrease in Other Operating Expenditures reflects targeted reductions to offset the cost of a requested staffing addition and maintain a net-zero fiscal impact. These reductions were achieved through operational efficiencies and adjustments to non-personnel budgets. The changes are not expected to impact core service delivery and align with the Utilities Branch’s broader cost management strategy.
Long Term Forecast
The Sewer Fund is projected to remain in a strong and stable financial position throughout the forecast period, with sufficient revenues to support both operational and capital requirements. Variations across years are primarily driven by the timing of expenditures and capital activities rather than underlying financial constraints. The elevated balance in Other Reserves reflects requirements associated with the Actuals Budget Supplement
Sewer Fund FY 2024-25 FY 2025-26 FY 2026-27
Staffing $ 5,552,235 $ 6,015,856 $ 6,529,646
YoY Change 2% 8% 9%
Other Operating Expenditures 3,905,154 4,746,764 4,610,285 YoY Change -1% 22% -3%
Transfers 3,290,250 3,140,155 2,909,332
YoY Change 6% -5% -7%
Capital Expenditures 14,028,786 8,033,141 7,030,377
YoY Change -30% -43% -12%
Debt Service Costs 6,825,920 7,098,607 7,090,097
YoY Change 11% 4% 0%
Total Expenditures $ 33,602,345 $ 29,034,524 $ 28,169,737 YoY Change -13% -14% -3%
137
Department Summary Utilities
State Revolving Fund loan for the Water Resource Recovery Facility upgrade, and these funds are restricted for that purpose. This reserve structure strengthens the fund’s financial position but is not indicative of discretionary available resources. Overall, the Sewer Fund is well-positioned to meet its financial obligations while maintaining compliance with funding requirements and reserve policies. The long-term financial forecast is provided in the table below.
Sewer Fund Long-Term Forecast
(A)
Actual
2024-25
(B)
Financial Plan
2025-26
(C)
Budgeted
2026-27
(D)
Projected
2027-28
(E)
Projected
2028-29
REVENUE
Total Charges for Service $ 21,034,861 $ 21,080,772 $ 22,591,478 $ 24,158,770 $ 25,658,369 Total Other Revenue $ 26,256,332 $ 921,000 $ 921,000 $ 921,000 $ 921,000 Total Revenue1 $ 47,291,192 $ 22,001,772 $ 23,512,478 $ 25,079,770 $ 26,579,369
EXPENDITURES
Total Salaries and Benefits2 $ 5,552,235 $ 6,015,856 $ 6,529,646 $ 6,827,797 $ 7,032,630 Total Other Operating Expenditures $ 3,905,154 $ 4,746,764 $ 4,610,285 $ 4,764,190 $ 4,911,489 Total General Government $ 3,290,250 $ 3,140,155 $ 2,909,332 $ 3,017,706 $ 3,130,386 Total Debt Service $ 6,825,920 $ 7,098,607 $ 7,090,097 $ 7,427,320 $ 7,256,372 Total Operating Expenditures $ 19,573,558 $ 21,001,383 $ 21,139,360 $ 22,037,012 $ 22,330,878 Total Captial Asset Expenditures3 $ 14,028,786 $ 31,395,661 $ 7,030,377 $ 4,192,524 $ 4,566,041 Total Expenditures $ 33,602,345 $ 52,397,044 $ 28,169,737 $ 26,229,536 $ 26,896,919 Working Capital - Beginning $ 53,797,920 $ 67,486,768 $ 37,091,496 $ 32,434,237 $ 31,284,471 Change in Financial Position $ 13,688,848 $ (30,395,272) $ (4,657,259) $ (1,149,766) $ (317,551) Working Capital - Year End $ 67,486,768 $ 37,091,496 $ 32,434,237 $ 31,284,471 $ 30,966,921 Rate Stabilization Reserves (10%) $ 1,021,760 $ 1,032,962 $ 1,108,497 $ 1,181,312 $ 1,256,292 Operating Reserve (20%) $ 3,914,712 $ 4,200,277 $ 4,227,872 $ 4,407,402 $ 4,466,176 Other Reserves (i.e. Debt Reserves) $ 6,087,166 $ 6,087,166 $ 6,087,166 $ 6,087,166 $ 6,087,166 Unreserved Working Capital Year End $ 56,463,130 $ 25,771,092 $ 21,010,702 $ 19,608,591 $ 19,157,287 2025-27 Financial Plan
1. This line reflects impact fees accounted for outside the Sewer Fund but incorporated into overall financial position.
2. This line includes actual, budgeted, and forecasted CalPERS ADP.
3. Fiscal Year 2025–26 includes carryover capital projects. Expenditures may occur in different years than originally budgeted. 138
Appropriation Limit
11. Appropriation Limit
The City’s appropriation limit is based on the Gann Spending Limit Initiative, a State constitutional amendment adopted by the voters on June 6, 1979, and amended in 1990 with Proposition 111. It is anchored in the State Constitution under Article XIIIB.
The limit restricts appropriations from tax revenues by State and local governments. Under its provisions, no local agency can appropriate proceeds of taxes in excess of its “appropriation limit”. Excess funds may be carried over into the next year. However, any excess funds remaining after the second year must be returned to taxpayers by reducing tax rates of fees; a majority of the voters may approve an override to increase the limit.
The City’s appropriation limit is calculated by considering population growth and cost of living as allowed under Proposition 111. The limit applies generally to tax funded spending and allows exceptions for debt service major capital expenditures. These exceptions allow the City to fund large capital projects with debt financing and to ensure that fee or grant funded programs are not inhibited.
11.1 Appropriation Limit Calculation
The following summarizes changes in the City’s appropriation limit and appropriations subject to the limit for the past ten years as well as the appropriation limit for 2026-27. A positive variance indicates that the City’s appropriations are lower than the allowable limit.
11.2 Limits over time
Factors Ratio
A.) Prior Year Appropriation Limit $102,632,964
B.) Adjustment Factors
1. Population Change 1.01% 1.0063
2. Cost of Living Increase 1.05% 1.0495
3. Combined Factor 1.06% 1.0562
Adjusted Limit $108,396,106
Fiscal Year Limit Base Cost of Living
Factor
Population
Factor
Appropriation
Limit
Appropriations
Subject to Limit Variance
2017-18 66,451,500 1.20% 0.92% 67,867,633 50,036,391 17,831,242 2018-19 67,867,633 1.88% 0.35% 69,383,546 51,142,315 18,241,231 2019-20 69,383,546 6.37% 0.24% 73,981,290 50,127,692 23,853,598 2020-21 73,981,290 1.92% -0.04% 75,373,410 48,342,410 27,031,416 2021-22 75,373,410 5.11% 0.31% 79,470,558 52,362,031 27,108,458 2022-23 79,470,558 7.55% 0.28% 85,706,220 65,610,162 20,093,058 2023-24 85,706,220 4.79% 1.15% 90,839,932 71,693,192 19,146,740 2024-25 90,839,932 3.62% 0.90% 94,976,973 76,671,495 18,305,478 2025-26 94,976,973 6.44% 1.52% 102,632,964 91,034,718 11,598,246 2026-27 102,632,964 4.95% 0.63% 108,396,106 99,530,182 8,865,924 139
Operating Budget Line Item Detail (All Funds) FY 2026-27 1001-City Administration $ 1,785,030
51001-Salaries - Regular 1,089,397
51004-Salaries - Temporary 8,400
52001-Retirement Contributions 74,168
52002-Retirement PARS - 401 11,921
52003-PERS Unfunded Liability 248,681
53001-Employee Group Insurance 123,893
53002-Retiree Healthcare 13,496
55001-Medicare 15,460
56003-Contingency Expense 9,550
61001-Advertising and Public Outreach 6,000
61008-Parking 7,680
61013-Other Contract Services 112,500
62001-Print and Reproduction 200
62002-Office Supplies 3,500
62003-Postage 200
62004-Publications and Subscriptions 325
62009-Software Licensing and Maint Agreements 29,558
63001-Membership and Certifications 2,400
63002-Education and Training 13,800
63003-Trips and Meetings 13,900
1002-City Council 270,881
51002-Council and Commissioners 169,098
52001-Retirement Contributions 5,960
52003-PERS Unfunded Liability 20,022
53001-Employee Group Insurance 34,763
53002-Retiree Healthcare 1,087
55001-Medicare 2,452
62001-Print and Reproduction 400
62010-Office Expenses - Other 17,400
63002-Education and Training 15,100
63003-Trips and Meetings 4,600
140
Operating Budget Line Item Detail (All Funds) FY 2026-27 1004-Economic Development 791,625
51001-Salaries - Regular 174,528
52001-Retirement Contributions 11,763
52003-PERS Unfunded Liability 39,098
53001-Employee Group Insurance 4,333
53002-Retiree Healthcare 2,122
55001-Medicare 2,531
61001-Advertising and Public Outreach 11,100
61013-Other Contract Services 531,000
62004-Publications and Subscriptions 300
62509-Misc Materials and Supplies 2,100
63001-Membership and Certifications 1,000
63002-Education and Training 5,000
63003-Trips and Meetings 6,750
1005-Natural Resource Protection 1,008,756
51001-Salaries - Regular 559,418
52001-Retirement Contributions 37,115
52003-PERS Unfunded Liability 129,480
53001-Employee Group Insurance 79,272
53002-Retiree Healthcare 7,027
55001-Medicare 7,985
61009-Regulatory Fees 40,000
61013-Other Contract Services 120,000
62003-Postage 500
62004-Publications and Subscriptions 500
62509-Misc Materials and Supplies 16,959
63002-Education and Training 10,000
63003-Trips and Meetings 500
1006-Tourism and Bid Promotion 2,253,147
51001-Salaries - Regular 172,399
51004-Salaries - Temporary 41,009
52001-Retirement Contributions 11,495
52003-PERS Unfunded Liability 49,308
53001-Employee Group Insurance 21,418
53002-Retiree Healthcare 2,067
55001-Medicare 3,068
61001-Advertising and Public Outreach 65,797
61013-Other Contract Services 1,794,586
62004-Publications and Subscriptions 16,000
62509-Misc Materials and Supplies 6,000
63001-Membership and Certifications 40,000
63002-Education and Training 15,000
63003-Trips and Meetings 15,000
141
Operating Budget Line Item Detail (All Funds) FY 2026-27 1007-Community Promotion 387,938
51001-Salaries - Regular 23,636
52001-Retirement Contributions 1,562
52003-PERS Unfunded Liability 5,146
53001-Employee Group Insurance 4,979
53002-Retiree Healthcare 279
55001-Medicare 336
61001-Advertising and Public Outreach 50,000
61013-Other Contract Services 298,000
63003-Trips and Meetings 4,000
1008-Downtown Association Administration 294,997
61013-Other Contract Services 294,997
1009-Community Services Group 637,158
51001-Salaries - Regular 388,848
52001-Retirement Contributions 26,017
52002-Retirement PARS - 401 2,727
52003-PERS Unfunded Liability 129,206
53001-Employee Group Insurance 28,230
53002-Retiree Healthcare 7,012
55001-Medicare 5,597
61008-Parking 995
61013-Other Contract Services 40,000
62002-Office Supplies 650
62007-Employee Recognition 1,000
62509-Misc Materials and Supplies 350
63001-Membership and Certifications 1,525
63002-Education and Training 3,500
63003-Trips and Meetings 1,500
1010-Office of DEI 630,184
51001-Salaries - Regular 214,044
52001-Retirement Contributions 16,503
52003-PERS Unfunded Liability 35,068
53001-Employee Group Insurance 12,562
53002-Retiree Healthcare 1,903
55001-Medicare 3,104
61013-Other Contract Services 336,000
63002-Education and Training 11,000
1021-City Clerk 690,291
51001-Salaries - Regular 358,110
51004-Salaries - Temporary 6,256
52001-Retirement Contributions 29,884
52003-PERS Unfunded Liability 94,034
53001-Employee Group Insurance 48,122
142
Operating Budget Line Item Detail (All Funds) FY 2026-27 53002-Retiree Healthcare 5,103
55001-Medicare 5,238
61001-Advertising and Public Outreach 10,000
61013-Other Contract Services 103,900
62001-Print and Reproduction 500
62002-Office Supplies 5,700
62004-Publications and Subscriptions 5,200
62010-Office Expenses - Other 1,000
63001-Membership and Certifications 1,545
63002-Education and Training 9,250
63003-Trips and Meetings 6,450
1031-Boysen Ranch Conserv Easement 7,500
61013-Other Contract Services 7,500
1101-Network Services 3,724,835
51001-Salaries - Regular 1,047,496
51004-Salaries - Temporary 49,258
51010-Overtime 37,500
51017-Standby 22,455
51018-Call Back 33,955
52001-Retirement Contributions 85,735
52003-PERS Unfunded Liability 236,502
53001-Employee Group Insurance 149,226
53002-Retiree Healthcare 12,835
55001-Medicare 15,675
61005-Data Processing Services 734,443
61013-Other Contract Services 533,884
61503-Electric Service 10,119
61505-Communication Service 333,710
62002-Office Supplies 305,180
62509-Misc Materials and Supplies 15,000
62511-Rents and Leases 45,061
63001-Membership and Certifications 2,200
63002-Education and Training 52,600
63003-Trips and Meetings 2,000
1103-Information Services 1,706,502
51001-Salaries - Regular 1,062,776
51010-Overtime 12,535
52001-Retirement Contributions 91,699
52003-PERS Unfunded Liability 255,706
53001-Employee Group Insurance 169,007
53002-Retiree Healthcare 13,878
55001-Medicare 15,307
61005-Data Processing Services 45,095
143
Operating Budget Line Item Detail (All Funds) FY 2026-27 61013-Other Contract Services 11,400
62002-Office Supplies 6,000
63002-Education and Training 22,700
63003-Trips and Meetings 400
1501-City Attorney 1,972,567
51001-Salaries - Regular 1,142,674
52001-Retirement Contributions 74,639
52002-Retirement PARS - 401 16,072
52003-PERS Unfunded Liability 240,441
53001-Employee Group Insurance 131,292
53002-Retiree Healthcare 13,049
55001-Medicare 16,057
56003-Contingency Expense 7,498
61007-Legal Services 226,150
61008-Parking 3,240
61013-Other Contract Services 60,950
62002-Office Supplies 500
62003-Postage 100
62004-Publications and Subscriptions 22,680
63001-Membership and Certifications 3,305
63002-Education and Training 12,400
63003-Trips and Meetings 1,520
2001-Financial Administration 383,035
51001-Salaries - Regular 274,322
52001-Retirement Contributions 17,991
52002-Retirement PARS - 401 2,279
52003-PERS Unfunded Liability 47,088
53001-Employee Group Insurance 4,548
53002-Retiree Healthcare 2,556
55001-Medicare 3,871
61008-Parking 1,080
61013-Other Contract Services 17,500
62002-Office Supplies 4,000
62007-Employee Recognition 800
63001-Membership and Certifications 650
63002-Education and Training 5,150
63003-Trips and Meetings 1,200
2002-Budget 273,153
51001-Salaries - Regular 142,233
52001-Retirement Contributions 9,399
52003-PERS Unfunded Liability 31,073
53001-Employee Group Insurance 9,940
53002-Retiree Healthcare 1,686
144
Operating Budget Line Item Detail (All Funds) FY 2026-27 55001-Medicare 2,022
56003-Contingency Expense 9,800
61001-Advertising and Public Outreach 2,800
61013-Other Contract Services 64,100
63002-Education and Training 100
2003-Revenue Management 618,412
51001-Salaries - Regular 228,721
52001-Retirement Contributions 19,204
52003-PERS Unfunded Liability 53,241
53001-Employee Group Insurance 38,459
53002-Retiree Healthcare 2,890
55001-Medicare 3,289
61013-Other Contract Services 172,035
62003-Postage 5,000
62010-Office Expenses - Other 1,575
63002-Education and Training 4,000
65013-Credit Cards Merchant Fees 90,000
2004-Purchasing 276,972
51001-Salaries - Regular 187,995
52001-Retirement Contributions 14,553
52003-PERS Unfunded Liability 41,702
53001-Employee Group Insurance 12,476
53002-Retiree Healthcare 2,263
55001-Medicare 2,672
61013-Other Contract Services 12,311
63002-Education and Training 3,000
2005-Accounting 1,466,586
51001-Salaries - Regular 874,881
52001-Retirement Contributions 62,177
52003-PERS Unfunded Liability 170,728
53001-Employee Group Insurance 106,656
53002-Retiree Healthcare 9,266
55001-Medicare 12,529
61001-Advertising and Public Outreach 900
61013-Other Contract Services 220,000
62003-Postage 2,000
63001-Membership and Certifications 350
63002-Education and Training 6,600
63003-Trips and Meetings 500
2007-NonDepartmental (934,139)
51001-Salaries - Regular 100,000
52001-Retirement Contributions 48,949
53002-Retiree Healthcare 2,075
145
Operating Budget Line Item Detail (All Funds) FY 2026-27 53003-Unemployment Insurance 30,000
56002-Misc Employee Reimbursement 15,000
59999 - Salary Savings (2,006,994)
61010-Ventures and Contingencies 200,000
61013-Other Contract Services 393,971
62001-Print and Reproduction 46,000
62003-Postage 43,000
62007-Employee Recognition 20,000
62010-Office Expenses - Other 6,000
62511-Rents and Leases 135,560
63001-Membership and Certifications 19,000
63002-Education and Training 3,300
65013-Credit Cards Merchant Fees 10,000
3001-Human Resources 2,067,937
51001-Salaries - Regular 1,182,794
51004-Salaries - Temporary 21,502
52001-Retirement Contributions 78,407
52002-Retirement PARS - 401 2,266
52003-PERS Unfunded Liability 257,682
53001-Employee Group Insurance 137,618
53002-Retiree Healthcare 13,985
55001-Medicare 17,180
61013-Other Contract Services 74,561
61029-Recruitment Expenses 82,772
61030 - Medical Services 5,400
62002-Office Supplies 3,500
62004-Publications and Subscriptions 6,800
62007-Employee Recognition 1,500
62008-Furniture and Fixtures 1,000
62009-Software Licensing and Maint Agreements 27,310
63001-Membership and Certifications 1,650
63002-Education and Training 129,710
63003-Trips and Meetings 21,300
65014-Misc Other Charges 1,000
3003-Wellness Program 49,500
61013-Other Contract Services 32,000
61028-Personnel Services 9,000
62008-Furniture and Fixtures 7,000
63003-Trips and Meetings 1,500
3050-Insurance ISF 6,066,253
54001-Workers Comp Insurance 2,355,887
61014-Liability Insurance 2,625,060
61015-Other Insurance 1,085,306
146
Operating Budget Line Item Detail (All Funds) FY 2026-27 4001-Community Development Administration 1,041,219
51001-Salaries - Regular 582,487
51010-Overtime 1,400
52001-Retirement Contributions 45,114
52002-Retirement PARS - 401 2,377
52003-PERS Unfunded Liability 129,915
53001-Employee Group Insurance 107,127
53002-Retiree Healthcare 7,051
55001-Medicare 8,336
61001-Advertising and Public Outreach 12,000
61005-Data Processing Services 8,500
61008-Parking 21,477
61013-Other Contract Services 1,800
62001-Print and Reproduction 5,000
62002-Office Supplies 5,000
62003-Postage 4,500
62004-Publications and Subscriptions 1,400
62007-Employee Recognition 3,000
62509-Misc Materials and Supplies 1,525
63001-Membership and Certifications 1,000
63002-Education and Training 5,000
63003-Trips and Meetings 1,210
65013-Credit Cards Merchant Fees 86,000
4002-Commissions and Committees 31,529
51002-Council and Commissioners 20,038
55001-Medicare 291
62004-Publications and Subscriptions 300
63002-Education and Training 7,600
63003-Trips and Meetings 3,300
4003-Planning 2,108,582
51001-Salaries - Regular 1,213,439
51004-Salaries - Temporary 70,653
51010-Overtime 12,500
52001-Retirement Contributions 97,760
52003-PERS Unfunded Liability 275,355
53001-Employee Group Insurance 158,160
53002-Retiree Healthcare 14,944
55001-Medicare 18,392
61013-Other Contract Services 221,179
62004-Publications and Subscriptions 500
62509-Misc Materials and Supplies 700
63001-Membership and Certifications 5,000
63002-Education and Training 19,000
147
Operating Budget Line Item Detail (All Funds) FY 2026-27 63003-Trips and Meetings 1,000
4004-Engineering 1,041,851
51001-Salaries - Regular 614,126
51004-Salaries - Temporary 63,750
51010-Overtime 12,000
52001-Retirement Contributions 54,854
52003-PERS Unfunded Liability 151,772
53001-Employee Group Insurance 66,309
53002-Retiree Healthcare 8,237
55001-Medicare 9,803
61013-Other Contract Services 47,000
62002-Office Supplies 3,000
62004-Publications and Subscriptions 500
63001-Membership and Certifications 3,500
63002-Education and Training 6,000
63003-Trips and Meetings 1,000
4006-Building and Safety 3,120,103
51001-Salaries - Regular 1,677,566
51010-Overtime 10,000
52001-Retirement Contributions 145,719
52003-PERS Unfunded Liability 338,125
53001-Employee Group Insurance 258,154
53002-Retiree Healthcare 18,351
55001-Medicare 24,213
61001-Advertising and Public Outreach 1,410
61005-Data Processing Services 44,394
61006-Engineering and Plan Checks 439,057
61011-Maintenance 2,440
61013-Other Contract Services 100,000
62004-Publications and Subscriptions 2,000
62506-Safety Materials and Supplies 500
62509-Misc Materials and Supplies 7,200
63001-Membership and Certifications 2,000
63002-Education and Training 47,675
63003-Trips and Meetings 1,300
4008-Housing Policy and Homelessness Programs 1,349,873 51001-Salaries - Regular 541,903
51010-Overtime 5,000
52001-Retirement Contributions 44,416
52003-PERS Unfunded Liability 122,468
53001-Employee Group Insurance 51,224
53002-Retiree Healthcare 6,647
55001-Medicare 7,858
148
Operating Budget Line Item Detail (All Funds) FY 2026-27 61013-Other Contract Services 555,357
62002-Office Supplies 6,800
62004-Publications and Subscriptions 700
63002-Education and Training 7,500
5001-Public Works Administration 1,535,427
51001-Salaries - Regular 997,828
51010-Overtime 1,200
52001-Retirement Contributions 70,658
52002-Retirement PARS - 401 795
52003-PERS Unfunded Liability 265,433
53001-Employee Group Insurance 126,121
53002-Retiree Healthcare 14,406
55001-Medicare 14,343
61008-Parking 540
61013-Other Contract Services 1,000
62001-Print and Reproduction 750
62002-Office Supplies 3,500
62004-Publications and Subscriptions 228
62007-Employee Recognition 6,000
62009-Software Licensing and Maint Agreements 1,605
62509-Misc Materials and Supplies 2,800
63001-Membership and Certifications 19,719
63002-Education and Training 7,500
63003-Trips and Meetings 1,000
5002-Parks Maintenance 4,321,345
51001-Salaries - Regular 1,384,808
51004-Salaries - Temporary 85,992
51010-Overtime 18,500
51017-Standby 18,500
51018-Call Back 1,000
52001-Retirement Contributions 131,093
52003-PERS Unfunded Liability 251,694
53001-Employee Group Insurance 257,905
53002-Retiree Healthcare 13,660
55001-Medicare 21,141
61011-Maintenance 3,750
61013-Other Contract Services 897,914
61501-City Water Service 801,892
61502-City Sewer Service 73,772
61503-Electric Service 157,272
61506-Solid Waste Service 30,269
62001-Print and Reproduction 750
62002-Office Supplies 500
149
Operating Budget Line Item Detail (All Funds) FY 2026-27 62004-Publications and Subscriptions 300
62009-Software Licensing and Maint Agreements 4,923
62501-Chemicals 12,000
62502-Construction Materials and Supplies 20,750
62503-Equipment Maintenance Supplies 22,500
62506-Safety Materials and Supplies 8,500
62509-Misc Materials and Supplies 91,000
63001-Membership and Certifications 2,960
63002-Education and Training 8,000
5003-Swim Center Maintenance 675,756
51001-Salaries - Regular 91,602
51004-Salaries - Temporary 21,767
51010-Overtime 4,500
51017-Standby 5,400
51018-Call Back 700
52001-Retirement Contributions 8,749
52003-PERS Unfunded Liability 21,080
53001-Employee Group Insurance 9,745
53002-Retiree Healthcare 1,144
55001-Medicare 1,618
61009-Regulatory Fees 1,000
61013-Other Contract Services 12,800
61501-City Water Service 83,000
61502-City Sewer Service 83,000
61503-Electric Service 101,013
61504-Natural Gas Service 96,489
61506-Solid Waste Service 3,184
62501-Chemicals 101,664
62502-Construction Materials and Supplies 3,500
62503-Equipment Maintenance Supplies 15,200
62506-Safety Materials and Supplies 600
62509-Misc Materials and Supplies 7,000
63002-Education and Training 1,000
5004-Urban Forest Services 269,189
51001-Salaries - Regular 168,286
51010-Overtime 4,500
52001-Retirement Contributions 16,196
52003-PERS Unfunded Liability 40,373
53001-Employee Group Insurance 19,265
53002-Retiree Healthcare 2,191
55001-Medicare 2,411
61011-Maintenance 300
61013-Other Contract Services 2,750
150
Operating Budget Line Item Detail (All Funds) FY 2026-27 62002-Office Supplies 100
62009-Software Licensing and Maint Agreements 4,779
62506-Safety Materials and Supplies 2,744
62509-Misc Materials and Supplies 1,458
63001-Membership and Certifications 280
63002-Education and Training 3,555
5005-Facilities Maintenance 1,511,395
51001-Salaries - Regular 445,252
51010-Overtime 8,000
51017-Standby 14,300
51018-Call Back 7,000
52001-Retirement Contributions 39,552
52003-PERS Unfunded Liability 106,795
53001-Employee Group Insurance 72,884
53002-Retiree Healthcare 5,796
55001-Medicare 6,398
61009-Regulatory Fees 450
61013-Other Contract Services 304,800
61501-City Water Service 29,256
61502-City Sewer Service 27,324
61503-Electric Service 300,000
61504-Natural Gas Service 36,843
61506-Solid Waste Service 43,858
62001-Print and Reproduction 250
62002-Office Supplies 250
62009-Software Licensing and Maint Agreements 4,923
62502-Construction Materials and Supplies 14,800
62503-Equipment Maintenance Supplies 4,000
62506-Safety Materials and Supplies 3,064
62509-Misc Materials and Supplies 32,100
63002-Education and Training 2,000
63003-Trips and Meetings 1,500
5006-Street/Sidewalk Maintenance 2,852,122
51001-Salaries - Regular 1,247,458
51004-Salaries - Temporary 46,216
51010-Overtime 9,700
51017-Standby 18,500
51018-Call Back 2,500
52001-Retirement Contributions 113,331
52003-PERS Unfunded Liability 241,817
53001-Employee Group Insurance 259,808
53002-Retiree Healthcare 13,124
55001-Medicare 18,589
151
Operating Budget Line Item Detail (All Funds) FY 2026-27 61013-Other Contract Services 497,500
61506-Solid Waste Service 25,000
62001-Print and Reproduction 3,000
62002-Office Supplies 100
62009-Software Licensing and Maint Agreements 4,779
62502-Construction Materials and Supplies 257,500
62506-Safety Materials and Supplies 8,400
62509-Misc Materials and Supplies 80,500
63002-Education and Training 4,300
5007-Traffic Signals and Lighting 657,854
51001-Salaries - Regular 179,732
51010-Overtime 2,400
51017-Standby 13,300
51018-Call Back 1,200
52001-Retirement Contributions 17,226
52003-PERS Unfunded Liability 42,624
53001-Employee Group Insurance 43,708
53002-Retiree Healthcare 2,313
55001-Medicare 2,564
61013-Other Contract Services 54,000
61503-Electric Service 256,000
62002-Office Supplies 100
62009-Software Licensing and Maint Agreements 13,255
62506-Safety Materials and Supplies 1,032
62509-Misc Materials and Supplies 25,400
63002-Education and Training 3,000
5008-Fleet 1,624,156
51001-Salaries - Regular 461,795
51010-Overtime 9,500
51018-Call Back 1,000
52001-Retirement Contributions 41,143
52003-PERS Unfunded Liability 92,172
53001-Employee Group Insurance 83,353
53002-Retiree Healthcare 5,002
55001-Medicare 6,629
61005-Data Processing Services 38,000
61009-Regulatory Fees 12,000
61013-Other Contract Services 133,500
62009-Software Licensing and Maint Agreements 14,362
62501-Chemicals 11,000
62503-Equipment Maintenance Supplies 192,200
62504-Fuel 504,000
62506-Safety Materials and Supplies 3,100
152
Operating Budget Line Item Detail (All Funds) FY 2026-27 62509-Misc Materials and Supplies 11,000
63001-Membership and Certifications 1,500
63002-Education and Training 2,500
63003-Trips and Meetings 400
5009-CIP Project Eng 3,121,592
51001-Salaries - Regular 2,018,571
51004-Salaries - Temporary 20,958
51010-Overtime 6,900
52001-Retirement Contributions 173,480
52003-PERS Unfunded Liability 484,470
53001-Employee Group Insurance 229,417
53002-Retiree Healthcare 26,293
55001-Medicare 29,547
61008-Parking 4,860
61009-Regulatory Fees 2,510
61013-Other Contract Services 20,000
62001-Print and Reproduction 2,500
62002-Office Supplies 2,500
62009-Software Licensing and Maint Agreements 65,744
62506-Safety Materials and Supplies 3,026
62509-Misc Materials and Supplies 5,000
63001-Membership and Certifications 3,817
63002-Education and Training 18,500
63003-Trips and Meetings 3,500
5010-Transportation Plan and Eng 1,010,847
51001-Salaries - Regular 621,142
51004-Salaries - Temporary 42,619
51010-Overtime 1,600
52001-Retirement Contributions 55,272
52003-PERS Unfunded Liability 138,586
53001-Employee Group Insurance 87,001
53002-Retiree Healthcare 7,521
55001-Medicare 9,625
61001-Advertising and Public Outreach 2,000
61008-Parking 2,160
61013-Other Contract Services 15,000
62001-Print and Reproduction 250
62002-Office Supplies 1,000
62009-Software Licensing and Maint Agreements 17,000
62506-Safety Materials and Supplies 150
62509-Misc Materials and Supplies 1,000
63001-Membership and Certifications 1,820
63002-Education and Training 7,100
153
Operating Budget Line Item Detail (All Funds) FY 2026-27 5011-Active Transportation 272,178
51001-Salaries - Regular 173,663
51004-Salaries - Temporary 5,881
52001-Retirement Contributions 11,913
52003-PERS Unfunded Liability 40,441
53001-Employee Group Insurance 28,010
53002-Retiree Healthcare 2,195
55001-Medicare 2,601
61001-Advertising and Public Outreach 5,000
62001-Print and Reproduction 250
62009-Software Licensing and Maint Agreements 444
63002-Education and Training 280
63003-Trips and Meetings 1,500
5101-Parking Admin 4,390,674
51001-Salaries - Regular 1,459,981
51004-Salaries - Temporary 360,320
51010-Overtime 8,000
51017-Standby 4,500
51018-Call Back 800
52001-Retirement Contributions 136,153
52002-Retirement PARS - 401 398
52003-PERS Unfunded Liability 288,774
53001-Employee Group Insurance 252,304
53002-Retiree Healthcare 15,672
55001-Medicare 26,025
61001-Advertising and Public Outreach 20,200
61005-Data Processing Services 160,000
61008-Parking 15,000
61011-Maintenance 96,000
61013-Other Contract Services 571,515
61501-City Water Service 6,936
61502-City Sewer Service 700
61503-Electric Service 274,666
61506-Solid Waste Service 7,344
62001-Print and Reproduction 63,000
62002-Office Supplies 5,000
62009-Software Licensing and Maint Agreements 19,000
62503-Equipment Maintenance Supplies 16,000
62509-Misc Materials and Supplies 26,525
63001-Membership and Certifications 1,345
63002-Education and Training 8,500
63003-Trips and Meetings 7,500
65013-Credit Cards Merchant Fees 538,517
154
Operating Budget Line Item Detail (All Funds) FY 2026-27 5201-Transit Ops and Maint 7,370,080
51001-Salaries - Regular 298,725
51004-Salaries - Temporary 18,862
51010-Overtime 2,500
52001-Retirement Contributions 23,782
52002-Retirement PARS - 401 133
52003-PERS Unfunded Liability 54,033
53001-Employee Group Insurance 62,623
53002-Retiree Healthcare 2,932
55001-Medicare 4,570
61001-Advertising and Public Outreach 20,000
61003-Auditing and Accounting Fees 5,800
61005-Data Processing Services 25,250
61008-Parking 1,620
61009-Regulatory Fees 7,000
61011-Maintenance 917,501
61013-Other Contract Services 66,100
61016-Purchased Transportation 5,090,438
61503-Electric Service 39,500
62001-Print and Reproduction 25,000
62002-Office Supplies 1,000
62008-Furniture and Fixtures 1,000
62009-Software Licensing and Maint Agreements 51,000
62504-Fuel 633,782
62509-Misc Materials and Supplies 2,500
63001-Membership and Certifications 3,330
63002-Education and Training 1,000
63003-Trips and Meetings 6,000
65013-Credit Cards Merchant Fees 4,100
5301-Stormwater 1,104,169
51001-Salaries - Regular 608,749
51004-Salaries - Temporary 49,258
51010-Overtime 4,600
51018-Call Back 300
52001-Retirement Contributions 53,296
52003-PERS Unfunded Liability 146,762
53001-Employee Group Insurance 82,423
53002-Retiree Healthcare 7,965
55001-Medicare 9,437
61005-Data Processing Services 1,000
61009-Regulatory Fees 18,500
61013-Other Contract Services 59,700
61503-Electric Service 500
155
Operating Budget Line Item Detail (All Funds) FY 2026-27 62002-Office Supplies 500
62009-Software Licensing and Maint Agreements 10,505
62503-Equipment Maintenance Supplies 2,400
62506-Safety Materials and Supplies 2,850
62509-Misc Materials and Supplies 34,675
63001-Membership and Certifications 3,250
63002-Education and Training 7,500
5302-Flood Control 70,200
61013-Other Contract Services 70,200
6001-Water Administration/Engineering 2,063,169
51001-Salaries - Regular 1,004,583
51003-Salaries - Contract 61,290
51004-Salaries - Temporary 67,450
51010-Overtime 5,000
52001-Retirement Contributions 69,547
52002-Retirement PARS - 401 530
52003-PERS Unfunded Liability 180,813
53001-Employee Group Insurance 107,604
53002-Retiree Healthcare 9,813
55001-Medicare 14,214
61001-Advertising and Public Outreach 70,000
61005-Data Processing Services 10,000
61007-Legal Services 90,000
61008-Parking 9,072
61013-Other Contract Services 73,796
61501-City Water Service 400
61502-City Sewer Service 350
61503-Electric Service 3,785
61504-Natural Gas Service 1,000
61505-Communication Service 2,750
62002-Office Supplies 2,500
62004-Publications and Subscriptions 2,500
62007-Employee Recognition 1,100
62009-Software Licensing and Maint Agreements 41,222
62010-Office Expenses - Other 2,750
62506-Safety Materials and Supplies 1,950
63001-Membership and Certifications 9,610
63002-Education and Training 15,050
65013-Credit Cards Merchant Fees 204,490
6002-Water Source of Supply 14,258,003
51001-Salaries - Regular 143,984
52001-Retirement Contributions 13,305
52003-PERS Unfunded Liability 32,225
156