Message from the Mayor
“Welcome to the 2026 State of the City Report. Over the past year, San Luis Obispo continued to demonstrate resilience, collaboration, and a shared commitment to community well‑being. Even as economic conditions shift and new chal lenges emerge, our focus remains steady: de‑ livering high‑quality essential services, investing in long‑term infrastructure, and supporting the people and places that make San Luis Obispo such a remarkable city.
In 2025–26, we advanced key community pri orities, from expanding housing opportunities and strengthening public safety, to enhancing mobility, improving our parks and public spaces, and modernizing critical infrastructure. These accomplishments reflect the hard work of City staff, the guidance of our City Council, and the partnership of our community members.
This report offers a snapshot of what we achieved together this year and highlights the foundations we’re laying for a strong and vibrant future. Thank you for your ongoing engagement and for helping shape San Luis Obispo into a thriving, welcoming, and forward‑looking community.”
City Council
The City of San Luis Obispo operates under a Council-Mayor-City Manager form of government, where elected officials set policy and an appointed City Manager oversees day-to-day operations.
Erica A. Stewart Michelle Shoresman
Michael R. Boswell
Emily Francis Jan Marx Mayor Vice Mayor Council Member Council Member Council Member
— Mayor Erica A Stewart, City of San Luis Obispo
San Luis Obispo at a Glance
Community Snapshot
Data provided by the United Stated Census Bureau and the 2024 General Plan update.
Employers
City Organization
Running a city means delivering essential services every hour of every day. From public safety and emergency response to water delivery, wastewater treatment, infrastructure maintenance, recreation programs, planning services, and internal operations, City teams work together to support neigh‑ borhoods, protect the environment, maintain critical infrastructure, and enhance quality of life for the community.
The organization chart below illustrates the structure behind these services and the coordination required to deliver them effectively. The City’s nine departments collectively provide a full range of municipal services. Most operations are supported through the General Fund, while specific services within Public Works and Utilities—including Parking, Transit, Water, and Sewer—operate through dedicated Enterprise Funds that are funded by user fees and service charges.
Budget & Financial Stewardship
The City of San Luis Obispo follows a two-year financial planning cycle. Fiscal Year 2025-26, ending on June 30, 2026, is the first year of the 2025-27 Financial Plan.
The City entered the 2025–27 Financial Plan with a cooling economy and slower revenue growth, requiring proactive steps to maintain fiscal balance. Preliminary forecasts for FY 2025-26 projected a $2.5 million General Fund deficit which the City addressed through targeted actions including constraining expenditures budgets, reallocating $1 million in capital expenditures to operations annually, and limiting new spending. These steps ensure responsible stewardship of City resources while maintaining progress on Major City Goals and essential services.
FY 2025-26 General Fund Revenue Budget
Fees and other revenue
Local Revenue
Measure G-20
Other Taxes
Property Tax
Sales Tax
Transient Occupancy Tax
FY 2025-26 City Budget
$118 million General Fund
$40 million Water Fund
$29 million Sewer Fund
$17 million Transit Fund
$11 million Parking Fund = $215+ Million Total
Local Revenue Measure:
The City’s Local Revenue Measure—Measure G-20—is a 1.5% local sales tax that generates about 25% of the City’s total Gen eral Fund revenue or approximately $31 million in FY 2025-26. It is critical to providing essential services and infrastructure.
Leveraging Resources:
In addition to its annual revenue streams, the City actively pur sues Federal, State, and Regional grants to supplement its budget. In many cases, a relatively small City match can lever age hundreds of thousands of dollars in external funding. This strategy enables the City to complete projects and deliver pro‑ grams at a scale typically seen in much larger communities.
A closer look at Property Tax: Ever wonder where your property tax dollars actually go? The chart below breaks down how your property tax is distributed. While property tax remains one of the City’s top revenue sources, the City receives only about 10 percent of the total property tax collected by the County from properties within City limits. This means that although property tax plays a key role in funding essential local services, the majority of each dollar collected is allocated to other agencies.
2025–27 Major City Goals
Every two years, the San Luis Obispo City Council adopts a set of Major City Goals based on the most pressing community priorities. The City accomplished a wide variety of tasks linked to Major City Goals with work that is intercon‑ nected across the organization.
Beyond the Major City Goals, long-term plan ning and core community values shape all aspects of the City’s work beyond Major City Goals. A range of strategic plans and guiding documents inform these efforts—see Appendix A for a full overview.
City Administration & Information Technology
The City Administration and Information Technology Department oversees essential City operations and internal services that support governance, community programs, and strategic initiatives.
Highlights
Tourism Impact: Our City continues to be a top destination to visit and in late 2025, was listed in BBC Travel’s list of “10 of the U.S.’s most Sustainable Small Towns.” SLO welcomed over 1.6 million visitors and generated $11.4 million in Transient Occupancy Tax (TOT) in 2025, a 3.2% increase from 2024.
Events, Arts and Culture:
• Attracted thousands and showcased the local creative community through events like The SLO Film Festival, International Film Festival, and ARTober.
• Supported the Performing Arts Center, which held 175 ticketed events and brought in $2.4 million for the arts economy.
Protecting natural resources and leading climate resilience
The City continues to be a leader across the state and nation in Climate Action and environmental stewardship, bringing in over $57 million in outside funding, cutting greenhouse gas emissions by about 20% since 2005, and advancing key initiatives to achieve carbon neutrality by 2035 while protecting natural resources.
The City was officially designated a “Clean California Community” for its exemplary efforts in litter reduction, beautification, and community cleanups, and the City marked the achievement with installation of a new recognition sign along Highway 1.
The Office of Sustainability and Natural Resources, in collaboration with other City Departments, helps support the with Vegetation Management Plan which focuses on fuel reduction and wildfire mitigation in the City’s open spaces. The City was also recently recommended for a $770,000 grant from the State Coastal Conservancy to support implementation of wildfireresiliency projects and expects to learn whether the funding is officially awarded in June.
Access, Belonging and Inclusivity
• The City awarded $300,000 in grants to local nonprofit programs and projects that support economic and social well being and help strengthen a sense of belonging for every person in SLO.
• Launched in January 2026, the City’s new ongoing ‘Belonging Series,’ led by the Office of Diversity, Equity, and Inclusion in partnership with community organizations and local experts, brings people together through workshops, cultural events, community dialogues, and collaborative partnerships.
Supporting local businesses, tourism, and economic growth
• Buy Local Bonus generated nearly $650,000 in local sales.
• SLO was selected to host the 2025 California Main Street Annual Conference, bringing several hun‑ dred downtown revitalization professionals to venues across the city.
• Ranked 9th in USA Today’s 2026 Readers’ Choice Awards for Best Farmers Market.
Keeping things running behind the scenes
The City continues to advance its Broadband Implementation Plan, supported by nearly $5 million in federal “Last Mile” grants to improve service for 13,000 residents and connect nearly 2,000 individuals who currently lack reliable internet access.
The City launched its comprehensive education and outreach plan for the transition to Citywide Single Vote, which will take effect starting with the November 2026 election. To support potential candidates, the City also held its first-ever Candidate Education Forum in November 2025, providing early information about running for City Council. There is no change to the Mayoral election.
The City held its biennial Community Academy in spring 2026, where 33 community members participated in a six‑week program to learn about City operations and engage directly with the Council and staff.
City Administration by the Numbers
Published 400+ news stories and public notices
Hosted at City Hall 180+ second grade students
Received 67 advisory body applications for 28 vacancies
Backed up over 185 terabytes of City data
Maintained 99.9% City Network Uptime
Submitted 38 legislative advocacy letters
Held 31 City Council meetings to review 211 agenda items
This year’s Lunar New Year celebration took place in the Mission Plaza, welcoming an estimated 5,000 attendees.
Police
The San Luis Obispo Police Department (SLOPD) is committed to building a safe, connected, and welcoming community through proactive policing, community engagement, and innovative public safety initiatives.
Working in partnership with the community, the department focuses on protecting life and property, preventing and reducing crime, and enhancing the overall quality of life for residents and visitors. To support these goals, SLOPD is organized into two bureaus: Administrative Services and Operations. Administrative Services encompasses Administration, Investigations, Communications, and Records, while the Operations Bureau includes Patrol, Traffic Safety, and Neighborhood Outreach.
2024 Highlights
St. Patrick’s Day Success
In 2025, the City implemented a zero tolerance approach to illegal activity in the neighborhoods surrounding Cal Poly in response to public safety concerns related to unruly St. Patrick’s Day celebrations. The strategy proved highly effective, and to maintain this success, SLOPD deployed a similar coordinated response in 2026 in partnership with Cal Poly. As a result, the City once again experienced no reported injuries or property damage.
Event Public Safety
Both 2025 and 2026 saw multiple large protests and peaceful rallies across the nation and with in San Luis Obispo. SLOPD, with support from other City departments, worked to ensure these events remained safe and orderly.
Boosting Downtown Safety
The City’s six Community Service Officers (CSOs) are highly engaged in the downtown area, providing patrol coverage, responding promptly to nonhazardous calls for service, and enforcing Municipal Code violations. In 2025, CSOs assisted with 189 arrests and issued 444 citations.
Community Action Team Impact
The department operates a Community Action Team (CAT), which includes a Licensed Psy chiatric Technician funded through the Opioid Settlement dollars the City received as part of the nationwide lawsuit involving pharmaceuti cal companies. These funds support services for individuals in the community experiencing mental health and substance use challenges. In 2025, CAT referred 157individuals to treatment centers and assisted with 8 family reunifications. Although this funding source is time‑limited, the program has demonstrated significant success, and the City is exploring options to sustain it beyond the current funding period.
Community Engagement
SLOPD continued to strengthen relationships across San Luis Obispo through community focused events and partnerships. Officers participated in informal gatherings such as Coffee with a Cop, as well as neighborhood meetups and activities hosted by local organizations, all aimed at fostering open dialogue and building trust. The department also engaged with local schools and youth serving groups to support students and families through outreach, resource events, and a positive presence on campuses. Together, these efforts help create a safer, more connected, and more resilient community.
SLOPD by the Numbers
Attended over 40 community events
Responded to 35,550 calls for service in FY 2024-25
Awarded over $400,000 in Federal and State grants
Held 14 Office of Traffic Safety Grant Enforcement Operations
Overall satisfaction rate for police services was above 90% (based on SPIDR survey)
The Fire Department pairs its emergency response services with robust prevention and education efforts, including fire and life safety inspections, plan reviews, wildland fuels management, fire and arson investigations, public safety education, and City emer gency management. It also maintains automatic and mutual aid agreements with neighboring fire agencies, the California Office of Emergency Services, and the Los Padres National Forest. Guided by its vision to be a progressive, community‑focused organization, the Department remains dedicated to protecting lives, property, and the environment.
Over the past year, the Department advanced this mission through continued success of the Mobile Crisis Unit, major pro gress on the Citywide Vegetation Management Plan, and early development of Interim Fire Station 5, slated to open in 2028.
Highlights
Firewise Neighborhood Recognition
WUI Code & Defensible Space Regulations
The City Council updated local building, fire safety, and energy standards to align with new state requirements and better address wildfire risk. These updates will make new construction and remodels safer, more fire-resistant, and more energy-efficient, while offering clearer and more predictable rules for property own ers. Additional changes—such as tree‑removal regulations and further energy-efficiency stand ards—will be considered in the future, and the City will continue tracking potential state funding opportunities to help homeowners improve fire safety.
Buena Vista Estates became the first neighborhood in the City of San Luis Obispo to earn Firewise USA® Community status, reflecting strong resident leadership and proactive wildfire risk reduc‑ tion. Working with City Fire staff, the neighborhood completed assessments, improved defensible space, and advanced home hardening efforts. The City will continue promoting Firewise partici‑ pation in other high-risk areas and supporting neighborhoods interested in strengthening wildfire resilience.
Live Fire Training
Our firefighters continually train to stay ready for any emergency. In August 2025, SLO City Fire partnered with County Fire for a rare live fire training at an acquired structure on Stanford Drive, practicing real-world tactics, communication, and firefighter survival under controlled conditions. This hands on training strengthens the team’s readiness and keeps our community safer.
Homelessness Response
Our Mobile Crisis Unit (MCU) continues to be a vital resource for residents experiencing behavio ral and mental health challenges and reducing unnecessary emergency calls by responding early, providing on‑the‑spot support, and connecting individuals with long term care and services. The MCU engaged with 253 unique individuals experiencing homelessness, resulting in 2,998 total contacts due to repeated engagements (1,594 duplicated contacts), and reunified 35 individuals with agencies or family. The MCU team provided 46 transports to services or alternate facilities and fielded a total of 151 mental health crisis intervention calls for service.
Leveraging external resources
To maximize impact while reducing local costs, the City proactively seeks grants that strengthen community safety. It was recently successful in securing:
• A $30,000 grant from the San Luis Obispo County Fire Safe Council to support citywide evacu‑ ation planning.
• $60,000 FEMA Fire Prevention & Safety Grant to strengthen local wildfire resilience, through staff training and education to the public.
New Fire Chief Appointed
Randy Harris, who has been serving as the Fire Chief in an in‑ terim role since January, says he is excited to continue serving the San Luis Obispo community, building strong leadership from within the Fire Department team, and continuing to build strong relationships in the City organization.
Harris will oversee the Fire Department’s $18 million budget and its 60 full-time employees. He began his fire service career in 1990 at the San Luis Obispo County Airport’s Fire Station 21, later becoming a paramedic and serving with the City of Paso Robles Fire Department.
Fire by the Numbers
7,344 emergency incidents responded to Over $26M million worth of total property saved
$791,000 mutual aid reimbursements for regional wildfire responses
70% reduction since 2019 in injury-related work loss due to new injury prevention program
Maintained 45 fleet vehicles, Refurbished Truck 1 in-house saving $440,000
Employed 7 interns, sponsoring 1 intern through a Firefighter 1 academy
19,121 Fire Suppression Training Hours
1,800 Fire and life safety inspections
Community Development
The Community Development Department facilitates development on private property in the City and ensures that development is rational, well planned, and supported by necessary infrastructure through planning, permitting, and inspection services. Community Development also houses the Code Enforcement Division, which addresses code compliance, neighborhood wellness, and safe housing. Over the past year, the Community Development Department has contributed to significant progress toward City Goals related to housing, homelessness, and neighborhood wellness.
Highlights
Affordable Housing Leader: The City of San Luis Obispo continues to lead the region in creat‑ ing affordable housing. Over the past seven years, the City has added more than 719 affordable homes—surpassing even the County’s unincorporated areas, despite their population being more than twice the size. More projects are on the way, including new housing specifically designed for transitional‑age youth, formerly homeless individuals and families, seniors, and veterans. The Maxine Lewis Apartments, completed in 2026, is a transformative new community that provides 39 units of permanent supportive housing in San Luis Obispo, offering stability and services for residents who need it most.
Renter Protections: Safe and affordable rental units continue to be a priority for our community, where about 60 percent of residents rent their homes. To support this work, the City Council held a study session focused on a potential rental registry and other ways to strengthen protections for renters. Council asked staff to move forward on several next steps: bring back an ordinance to update the Mobile Home Park Rent Stabilization rules, return with more information about rental registries for potential inclusion in the next budget cycle, develop a strategic plan for the City’s Safe Housing Program, and continue researching local needs.
Homelessness Response: In January, the City partnered with the County of San Luis Obispo to support the annual Point‑in‑Time Count. Thanks to strong outreach and volunteer engagement, the effort exceeded its recruitment goal, with 263 volunteers participating countywide. While full results will be released later this year, preliminary data from the 2026 count show a 49 percent decrease in homelessness among veterans since last July and a 42 percent drop in unsheltered homelessness since 2022 (across the county). Through its partnership with CAPSLO, the City also supported the rotating Safe Parking Program, providing safe overnight parking options and connections to services for individuals living in vehicles.
Recent Development Projects
Several larger development projects are nearing completion or are underway. These projects are providing much needed housing and support infrastructure and commercial development.
• San Luis Ranch completed construction of all market rate housing units within the project (577 units complete and occupied), as well as the SLO Ranch Marketplace commercial and agricultural site and the 200 room dual brand hotel.
• Avila Ranch completed most of Phase 1 construction (158 units complete and occupied) and be gan construction on Phase 2 (43 units complete and occupied, with 42 units under construction). The City is working with the developer to faciltate the review of future phases of the project.
• Froom Ranch submitted an application for Specific Plan and General Plan amendments, includ ing a proposal for an increased number of residential units, reduced commercial square footage, revised circulation plan, and a request to allow development and subdivision in the Very High Fire Hazard Severity Zone (VHFHSZ). The applicant’s proposal will be presented to the City Council for consideration in 2026.
• The first of three multi-storied buildings that make up the San Luis Square (581 Higuera) project has been completed. The building includes 29 residential units (3 of them affordable), approxi mately 3,000 square feet of commercial space, and 69 semi subterranean parking spaces. This project is contributing to the provision of housing units in the downtown area.
• The Monterey Senior Apartments (Balay Ko on Monterey) project began construction at 1422 Monterey Street. This project will provide 55 units of housing for seniors at low-income and be‑ low. The second phase of the project, Monterey Family Apartments, which will contain 51 units of family housing at low income and below, will begin construction in late May 2026.
CDD by the Numbers
1,254 building permits issued
99 building permits issued for ADUs
222 planning applications received
357 affordable housing units in the development pipeline
1,336 code enforcement complaints investigated
7,709 building inspections completed
1,079 plan check applications submitted
$426,005 in direct City funding to CAPSLO homelessness services, including the 40 Prado Homeless Services Center and the Safe Parking Program
46.8 tons of trash removed as part of encampment response
274 illegal encampments removed
Picture credit: KSBY
Parks & Recreation
The Parks & Recreation Department provides high-quality parks, facilities, and programs that promote wellness, community connection, and lifelong enrichment. From the SLO Swim Center to the Damon-Garcia Sports Complex and Laguna Lake Golf Course, the department offers diverse recreational, cultural, and educational opportunities for all ages. It also manages public art, open space, and volunteer programs, with a strong focus on community building as outlined in the Parks & Recreation Blueprint for the Future. Supported by a dedicated team of full time and seasonal staff—ranging from lifeguards and childcare providers to event hosts and educators— the department serves the community year round.
Highlights
The Parks and Recreation Department offers year-round, family-friendly events through its Youth Services and Community Services programs. Seasonal highlights include:
Summer
• KidVenture Summer Fun and Ultimate Day Camp
• Monday Meet Ups
• Junior Ranger Camp (Rangers)
• Super Rec Saturdays (Aquatics)
• Around the Town
Year-Round Events
Fall
• September Scramble
• Boo Bash
• Teacher Workday Winter
• Golden Decades Holiday Party
• Pictures with Surfer Santa (Aquatics)
• Winter Family Fest.
• Before and Afterschool Childcare
• Jack House Tours, holiday & outdoor events
• Ranger Workdays & led hikes
• SLO Hikers
Spring
• Leprechaun Lost
• Spring Break Camp
• Spring Fling
• Volunteer Appreciation Month
• Sizzling Spring Senior BBQ
• Senior programs (day trips, trivia, games, socials)
• Swim and golf programs
• Youth and adult sport leagues
Award-Winning Parks & Recreation Programs and Facilities
The City earned multiple California Parks and Recreation Society District 8 awards, including Cre ating Community for the September Scramble and Excellence in Design for the Laguna Lake Dog Park and Bike Park. The SLO Swim Center was named the Tribune’s Best Pool Complex on the Central Coast, and New Times honored the Laguna Lake Dog Park and the 15-year-strong Public Art Box Art Program. These recognitions highlight the City’s continued commitment to high‑quality recreational facilities.
Community Spirit Powered by Volunteers
For calendar year 2025, an average of 152 volunteers served the City each month and over 8600 volunteer hours were clocked and 15 City Teams on average utilized volunteer support. At the local volunteer investment rate (ROVI) of $37.32, volunteers contributed a monetary value of over $320,000 to the City.
Art All Around: This year brought notable additions to San Luis Obispo’s public art collection. In January 2026, the City unveiled Sculpture Jam, a redwood and copper artwork by the late Bruce Johnson, installed at Mission Plaza in partnership with the San Luis Obispo Museum of Art. Inspired by redwoods, the piece emphasizes connection and resilience. Together with the new “SHIFT” sculpture in San Luis Ranch and a colorful mural near C.L. Smith Elementary, these installations highlight the City’s continued commitment to public art and community identity.
Parks & Recreation by the Numbers
24,494 total golf rounds
2,322 Youth Sports Registrations
147 Adult Athletic Teams Registered
More than 1,600 children filled 3,000 childcare spots across the school year
76,905 Aquatics facility entries
460 Annual Senior Center Memberships
13 Open Space properties maintained (over 4,000 acres)
Public Works & Utilities
Recently consolidated to create efficiencies and better align overlapping functions, the Public Works and Utilities Department delivers the essential infrastructure, transportation systems, and utility services that support daily life in San Luis Obispo.
Public Works
The Public Works branch is organized into three core divisions: Maintenance, Engineering, and Mobility. Together, they manage fourteen specialized programs that keep the city running smoothly. From transit and parking to street maintenance and flood control, the Department works to improve daily life in San Luis Obispo. This includes maintaining and upgrading 143 miles of roadway that support residents, visitors, businesses, and emergency services.
Utilities
The Utilities branch provides the City’s water, wastewater, solid waste, recycling, and storm‑ water services, overseeing system operations, maintenance, customer service, planning, and regulatory compliance. The Department manag es the Water and Sewer Enterprise Funds, the Whale Rock Agency Fund, and solid waste and stormwater programs within the General Fund, ensuring financial sustainability and long-term infrastructure reliability across all utility services.
Mobility Services Highlights
The Mobility Services Division oversees the City’s parking, transit, and active transportation programs, supporting safe, accessible, and sustainable travel for all users. Parking and transit operations are fully funded through their own fees for service, with the division maintaining more than 2,740 parking spaces and supporting over 660,000 transit passenger trips each year.
Highlights from 2025-2026 include:
• As of 2026, Transit service was restored to pre‑pandemic levels, and ridership has increased by double‑digit percentages annually for the past four years.
• Advanced the transition toward a 50% zero-emission fleet by bringing eight electric buses into operation in the spring of 2026.
• Expanded regional transit options through a pilot service agreement with SLOCOG and the City of Santa Maria.
• Launched major technology upgrades in early 2026, including enhanced real‑time bus tracking, the Tap2Ride contactless fare system, and a new text‑based arrival tool coming this summer to create a more connected, reliable, and user‑friendly transit system across San Luis Obispo.
• Continued the Roll & Stroll bicycle and pedestrian education campaign, producing seven educational videos, attending more than ten community events, and encouraging employees to choose sustainable commute options.
SLO in Motion Highlights
Safer Streets to Keep SLO in Motion
The City continued to make progress in improvements on neighborhood streets through the SLO in Motion initiative. In early 2026, the City completed repaving on Sacramento Drive and Tank Farm Road, adding ADA‑compliant curb ramps, buffered bike lanes, and green pavement markings to improve safety for all travelers. By March and April, crews wrapped up additional paving and striping on Tank Farm Road, installed new pedestrian flashing beacons, and advanced electrical work for an upcoming pedestrian hybrid beacon at South and King Streets, while also completing signal upgrades at the S. Higuera & Suburban and Orcutt & Duncan intersections.
The Cultural Arts District Parking Garage opened on March 17, 2026, adding nearly 400 parking spaces, 41 EV chargers, extensive bike amenities, and rooftop solar.
As the City’s largest downtown infrastructure investment at $43 million, its Mission‑style design complements nearby cultural venues. The City offered 28 days of free parking to introduce and promote use of the new garage.
Public Works by the Numbers
116 acres of park landscape maintained (FY 2025)
13,431 trees maintained through the urban forest program with a net increase in trees in 2025 of 78
367 City-wide fleet & equipment assets (FY 2025)
74/100 Pavement condition index (FY 2025)
2,531 Street lights operated and maintained (FY 2025)
30 projects completed
28 parks maintained
Public Works & Utilities
Capital Improvement Highlights
In FY 2025, the City invested $81.9 million in capital projects across all funding sources. Public Works advanced several transformational efforts that enhance mobility, sustainability, and community spaces.
Capital Improvement Project Recognition
The City is proud to have earned both statewide and national recognition for several of its capital projects. The American Pub‑ lic Works Association (APWA) honored three significant efforts including:
• Laguna Lake Dog Park
• Cultural Arts District Parking Garage
• Mid-Higuera Bypass- Natural Resources
Completion of Mid Higuera Bypass: The Mid Higuera Bypass Project is now complete, marking a major milestone in the City’s longterm flood mitigation and climate resilience efforts. This $13 million project increases creek capacity by 40%, reduces flood elevations by up to 18 inches between Marsh Street & Madonna Road, replaces the aging Bianchi Lane Bridge, and enhances natural habitat along the corri dor. Together, these improvements significantly reduce flood risk for nearby neighborhoods and businesses while supporting a healthier, more resilient creek system.
Mission
Plaza
Enhancements:
The Mission Plaza Enhancement Project is still underway in delivering a refreshed and more accessible gathering place in the heart of downtown. This $5.8 million investment so far has restored the historic Murray Adobe, replaced aging restrooms with brighter and more accessible facilities. We are adding a new café kiosk and outdoor seating, and improved lighting, land‑ scaping, and pedestrian circulation throughout the plaza. Together, these upgrades preserve the character of Mission Plaza while creating a more welcoming and functional space for community events, residents, and visitors alike.
Utilities Highlights
Wastewater Resource Recovery Facility Upgrades Complete:
In October 2025, the City celebrated the completion of its larg‑ est ever infrastructure investment—the SLO Water Plus project. Launched in 2015, this multiyear effort modernized the Water Resource Recovery Facility to enhance its ability to recover and reuse valuable resources once considered waste. Construction began in 2019 and culminated in a state of the art facility that will reliably serve the community for generations to come.
Ground Water Clean Up: The City is advancing a long‑term Groundwater Cleanup Project to safely restore the San Luis Obispo Valley Groundwater Basin for future drinking water use. After a 2022 study identified a small plume of PCE, an industrial chemical no longer being released, the City began developing two new groundwater wells that will come online in 2027. Over the following decade, groundwater will be pumped, treated to meet drinking water standards, and integrated into the City’s water sup‑ ply.This work is supported by a $7.7 million grant from the State Water Resources Control Board and $500,000 Integrated Re gional Water Management grant (in the final stages of execution), helping expand local water resources while ensuring public health and environmental safety.
As part of the ongoing deployment of Advanced Metering Infrastructure (AMI), the City has installed more than 5,400 AMI‑ enabled radios across approximately 17,000 water meters, achieving roughly 30 percent system coverage. This continued implementation supports the City’s transition to remote water‑ usage monitoring and enhances customer service through more timely and accurate data.
Utilities by the Numbers
148 miles of sewerline
191 miles of waterline
17,133 total customers
59 Water Service lines repairs (FY 2025)
1.8 billion gallons of drinking water were treated and delivered to the community
1.5 billion gallons of wastewater were treated at the WRRF
369 illegal dumping requests were processed through AskSLO by the Solid Waste & Recycling Program
808 customers were enrolled in real time water monitoring as of April 2026 and 5,400 meters are now AMI capable.
Finance
The Finance Department sets the foundation for responsible, transparent, and strategic fiscal stewardship at the City of San Luis Obispo. Over the past two years, the department has navigated an increasingly challenging financial landscape marked by inflation, evolving revenue streams, and growing demands for public services. Finance remains committed to long‑term sustainability, innovation, and transparency— helping guide the City through complex economic conditions while ensuring public trust.
Highlights
• $250M+ Biennial Financial Plan Adopted on June 17, 2025: Guided by Council priorities and Major City Goals.
• AA Credit Rating Maintained: Reflecting strong, stable financial management practices.
• AA Water Bond Rating: Reflecting a diversity of source of water supply and solid wildfire and natural disaster risk mitigation measures.
• Received Government Finance Officers Association (GFOA) awards for excellence for two key financial documents:
Ě The 2025 Annual Comprehensive Financial Report, demonstrating transparent reporting, clean audits, and clear public accessibility.
Ě The 2025–27 Financial Plan, exemplifying outstanding financial planning and budgeting. To view the current budget and explore the 2025–27 Financial Plan, visit: www.slocity.org/budget
FEMA Recovery: The City made strong progress this year in recovering funds from recent emergencies. All COVID‑19 reimbursement requests are now complete, and the City received more than $675,000 back for its response efforts. Efforts related to the 2023 storm reimbursements are also moving forward, with nearly $2 million in payments already received and more projects under final review.
Finance by the Numbers
Over 8,700 Business Tax Certificates issued 14,246 Payments for vendor invoices processed
2,634 Accounts receivable invoices processed
20,256 Payroll checks/direct deposit transactions processed
City Attorney
The City Attorney’s Office provides strategic legal guidance to protect the City’s interests and support Council goals through legally sound actions. Over the past year, the office has tackled complex legal issues, supported major initiatives, and ensured transparency and compliance across departments, adapting to evolving municipal challenges through a mix of in house expertise and specialized counsel.
Highlights
As a support department, accomplishments are achieved in coordination with and in support of others. Some of the most significant, recent City Attorney achievements are:
• Support for implementation of Citywide Single Vote as part of the negotiated settlement of a California Voting Rights Act demand
• Resolved or tendered several high dollar, time intensive claims and litigation
• Legal support to WUI Code and Defensible Space Regulations development and adoption
• Legal support and prosecutorial coordination with courts and community partners in multidisci plinary downtown safety and homelessness response efforts to achieve services referrals and behavioral and safety interventions (with CAT, MCU, and County Behavioral Health and Justice Services partners)
• Legal support for significant development and capital improvement projects in Community Development and Public Works.
City Attorney by the Numbers
2025 Calendar year
Reviewed over 250 staff reports for 31 City Council meetings
Prepared for and attended 14 City Council closed sessions
Reviewed 25 Planning Commission staff reports
More than 490 requests for assistance from City staff on new matters (via Intake Form or similar)
Provided document review and assistance for over 140 public record requests (of the almost 490 received and processed Citywide) with over 62,000 pages of records produced
25 misdemeanor complaints filed in Superior Court: 10 defendants appeared, 6 were connected to services, 2 were granted diversion by the court, and 1 has completed their diversion program
Human Resources
The City of San Luis Obispo is committed to building and sustaining a talented, engaged work force that delivers exceptional service to the community. Over the past two years, like many public agencies across California, the City has navigated workforce challenges, including fluctuating vacancy rates, a competitive labor market, and hard-to-fill positions across specialized fields.
In response, the Human Resources Department took a multi faceted approach focused on improving recruitment efforts, strengthening employee engagement and retention initiatives, and expanding career development opportunities. These efforts are essential to maintaining a resilient, high‑performing workforce that can meet the evolving needs of the community.
Highlights
HR by the Numbers
Statewide Recognition for Strong Risk Man-
agement: In 2025, the California Joint Powers Insurance Authority recognized the City of San Luis Obispo for Best Overall Performance in the Liability Program among agencies with police departments. This statewide award reflects the City’s strong commitment to public safety, pro‑ active risk management, and the responsible stewardship of taxpayer dollars. The recogni‑ tion highlights ongoing efforts to reduce liability, strengthen internal procedures, and support a culture of safety across all departments.
Employee Engagement survey: In early 2026, the City conducted an employee engagement survey to understand what is working well and how we can continue improving as an employ er. With an impressive 88% participation rate, results show a workforce proud of serving the community and committed to high quality public service. The City is using this feedback to guide clear, actionable next steps aimed at strengthening the employee experience.
451 employees across 9 departments (December 2025)
7.6% average vacancy rate (CY 2025)
59 recruitments conducted (CY 2025)
76 positions filled (CY 2025)
43% internal promotion rate (CY 2025)
91% employee retention rate (CY2025)
Celebrating Excellence: Employees of the Year: The City proudly honored outstanding contributions through its annual Employees of the Year program, recognizing individuals who demonstrated exceptional service, leadership, and dedication.
Kellie Fortner Public Works & Utilities
Matt LaFreniere Community Development
Niels Grether Parks & Recreation
Haley Lehman Information Technology
Hannah Hahn Community Development
Eric Lokkart Fire Freddy Otte Administration
Madeline Kacsinta Public Works & Utilities
Michelle Rolle Parks & Recreation
Diana Federico Human Resources
Riley Kuhn Finance
Chere Valencia Finance
Brian Amoroso Police Eric Baker Public Works & Utilities
Miguel Barcenas Public Works & Utilities
Christine Brocco Public Works & Utilities
Christine Dietrick City Attorney
Thank you for taking the time to explore this year’s State of the City.
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Upcoming Election Changes
The way we elect Council Members will soon change. The City Council is made up of one elected Mayor and four elected Council Members. Starting in the November 2026 election, voters will select just one Council Member and the top two vote getters will win. There is no change to the Mayoral election.
Learn how to make your vote count at www.slocity.org/SingleVote
VOTO ÚNICO TODA LA CIUDAD
Appendix AKey Strategic Plans
The City of San Luis Obispo uses a range of plans and policies to guide its services, investments, and decisions, both now and into the future. We invite readers to explore these plans linked below for information about many of the ways the City is planning for the future.
General Plan
Every service the City provides to the community can trace its roots back to goals and policies found in elements of the General Plan:
Strategic Plans
• Conservation and Open Space Element
• Housing Element
• Land Use Element
• Safety Element
• Noise Element
• Circulation Element
• Parks & Rec Element
• Water and Wastewater Element
• Over 19 Specific Area Plans
In addition to the General Plan, the City maintains a range of departmental and strategic plans that align with our community’s priorities and outline how we will achieve the City’s mission, vision, and goals. Some of the current plans include:
• Climate Action Plan
• Active Transportation Plan
• Homelessness Response Strategic Plan
• DEI Strategic Plan
• Economic Development Strategic Plan
• Community Forest Plan
• Broadband Plan
• Vision Zero Action Plan
• Short Range Transit Plan
• Access and Parking Management Plan
• Lead by Example Plan
• Police Department Strategic Plan
• Fire Department Strategic Plan
STATE OF THE CITY
The City of San Luis Obispo is a dynamic community embracing its future while respecting its past with core values of civility, sustainability, diversity, inclusivity, regionalism, partnership, and resiliency.