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City of San Luis Obispo issued the following announcement on Feb. 16.
On Tuesday, San Luis Obispo City Council adopted about $24 million in current fiscal year budget adjustments that will help pay down pension debt sooner, advance major city goals, support existing public services, and address emerging community needs.
The City finds itself in a uniquely positive financial position, according to the mid-year budget report presented on Tuesday. Due to prudent financial decision making during the pandemic as well revenue increases and expenditure savings, the 2021-22 fiscal year offered the opportunity to further address Major City Goals and City services with more funding for community and organizational needs.
The City Council also provided direction to return with recommendations to prioritize $4.5 million of American Rescue Plan Act funding towards housing and homelessness and $100,000 for additional assistance to local non-profits.
“Our fiscal health strategies are working. We are now able to make many important one-time and some long-term investments that will help us meet the most vital, highest-priority goals identified by our community last year,” said City Manager Derek Johnson. “COVID-19 impacts are still top of mind, but we’re able to pay down a significant amount toward our pension debt, grant funds to SLO Rep Theater, invest in new legacy projects, address workforce shortages, homeless outreach services, and make major improvements to bridges, bike paths, parks and more.”
Mid-year changes to the budget center around four goals identified by the City Council as most critical to achieving the community’s vision for the future. As part of its fiscal sustainability goal, the City will make a $12.4 million payment toward its pension debt, the single largest additional payment to date. Reducing pension costs is a critical part of the City’s long-term fiscal sustainability. This payment puts the City on track to paying down its unfunded liability 10 years ahead of schedule, saving taxpayers $19 million in the long run.
The City has earmarked a $3.94 million challenge grant from one-time funds to assure the construction of the new SLO REP Theatre. This key project will foster a new cultural corridor around the Mission, while supporting the downtown economy and complete a large, central piece of the City’s Downtown Concept Plan. Once fully operational, the new theatre could generate an economic impact of more than $3 million annually, according to a SLO REP Economic Impact Report.
The Council also took immediate action to address the City’s workforce. The updated mid-year forecast assumes an increase in the City’s staffing costs aligned with the City’s compensation philosophy. A recent compensation study that compared City employee salaries to similar employers locally and in California found that, overall, the City’s base salaries are on average 8.55% below the median. As a general industry standard, base salaries within 5% of the market median are considered competitive.
“We remain committed to providing the high-quality public services our community expects and needs,” Johnson said. “To do that, we must commit to paying fair and competitive salaries that help us attract and retain talented, qualified, and experienced team members.”
Over the next year and half, the City will continue advancing its goals related to housing and homelessness; diversity, equity, and inclusion; and climate action, open space, and sustainable transportation. The City also remains committed to several new and accelerated projects to maintain and improve City streets, bridges, and other infrastructure.
More information
Original source can be found here.
Source: City of San Luis Obispo
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