HomeMy WebLinkAboutCC 2026-02-24_11a SLOCOG Transportation Expenditure PlanItem 11.a.
MEMORANDUM
TO: City Council
FROM: Matthew Downing, City Manager
Bill Robeson, Assistant City Manager/Director of Public Works
BY: Shannon Sweeney, City Engineer
SUBJECT: San Luis Obispo Council of Governments (SLOCOG) Transportation
Expenditure Plan
DATE: February 24, 2026
RECOMMENDATION:
Adopt a Resolution approving the San Luis Obispo Council of Governments (SLOCOG)
Final Draft Transportation Expenditure Plan (Plan) and authorizing SLOCOG to use the
City’s logo on website and informational materials.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There is no immediate fiscal impact associated with this action.
If the regional half-cent sales tax measure proceeds and is approved by voters in
November 2026, Arroyo Grande would receive a significant, stable, multi-decade revenue
stream of approximately $1,256,955 annually to supplement road repair and
transportation-related infrastructure improvements within the City.
BACKGROUND:
SLOCOG developed a Plan associated with a potential half -cent countywide
transportation sales tax measure targeted for the November 2026 ballot.
The Plan is intended to address a region-wide transportation funding shortfall, respond to
public feedback collected through polling, workshops, and focus groups, and establish an
equitable distribution of new transportation revenues.
On January 13, 2026,1 SLOCOG staff presented the draft Plan to the City of Arroyo
Grande City Council to gather input prior to final Board consideration. The Council
provided input and comments to SLOCOG on its Draft Plan, including the request that
1https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=49dd393f -4950-4c01-9319-
d402aa6b33a5&Agenda=Agenda&lang=English&Item=43&Tab=attachments
Page 43 of 139
Item 11.a.
City Council
San Luis Obispo Council of Governments (SLOCOG) Transportation Expenditure
Plan
February 24, 2026
Page 2
language be incorporated into the Plan that requires consensus among the south county
region representatives before south county regional funds are allocated elsewhere within
the county. SLOCOG staff discussed this comment with their legal counsel and
determined that such additional approval cannot be accomplished on a formal level
because none of the regional areas are represented by a single legislative body through
which that concurrence can be sought. Although the Council’s input and comments were
not incorporated into the Plan presented to the SLOCOG board as envisioned, in
discussion with SLOCOG staff, the concept of ensuring that regional corridor
improvement funds are equitably allocated is incumbent on the Citizen Oversight
Committee, which is comprised of members of each community, by the SLOCOG board,
which approves implementation plans, and by the Final Expenditure Plan if the measure
passes, which has regional percentages to be met over the life of the 30-year measure.
On February 4, 20262, the Plan was presented to the SLOCOG board for review of
recommended changes, excluding the directed Council language. The SLOCOG board
approved the final draft Transportation Expenditure Plan and directed staff to present the
final draft Plan to the jurisdiction for approval consideration.
ANALYSIS OF ISSUES:
The proposed sales tax is projected to generate approximately $35 million annually (2024
estimate), escalating each year. The Plan describes revenue distribution across four
primary categories:
55% - Local Road Repairs, Safety, and Improvements (allocated to each
jurisdiction based on population)
40% - Regional Corridor Improvements (allocated to four subregions by population
share)
4% - Senior/Disabled/Veterans’ Mobility Improvements
1% - Administrative Costs (maximum)
The Plan emphasizes transparency, local control, subregional equity, and accountability
through safeguards such as a Citizens’ Oversight Committee, maintenance-of-effort
requirements, regular audits, and multi-year implementation plans.
SLOCOG is seeking approval by resolution on the final draft Plan and will return with
results to the SLOCOG Board on April 1 . SLOCOG may adopt the plan if a majority of
cities, with a majority of incorporated population approve the draft final Plan.
Under the Plan, Arroyo Grande would receive an estimated $1,256,955 annually from the
Local Road Repair category (55% share). Additional funds are guaranteed to fund
2 https://slo-span.org/meeting/slocog_20260204/
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Item 11.a.
City Council
San Luis Obispo Council of Governments (SLOCOG) Transportation Expenditure
Plan
February 24, 2026
Page 3
regional improvements in the South County communities through the Regional Corridor
improvements category.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Adopt the Resolution;
2. Do not adopt the Resolution; or
3. Provide other direction to staff.
ADVANTAGES:
A dedicated, local transportation sales tax is an invaluable tool that 25 California county
transportation authorities use to deliver timely, cost-efficient transportation improvements
to their communities. Adding San Luis Obispo County to the list of counties in California
that have such dedicated sales taxes would help unlock hundreds of millions of dollars in
additional transportation funding, helping deliver much -needed transportation
improvements and repairs for our residents and to our communities.
A San Luis Obispo regional, ½ cent sales tax for transportation would:
Generate $35M annually, escalating each year (topping $1B over 30 years without
escalations);
Reclaim $0.8M to $1M annually from State funds;
Collect a $3M to $5M one-time windfall from State funds;
Qualify the region to receive our fair share of State and Federal funds (our
neighboring Central Coast Counties have seen average annual grants that equal
or nearly double collected tax amounts);
Include Investment Guidelines providing safeguards, assurances, and oversight of
all funds; and
Guarantee 99% of all funds are for transportation-related improvements within the
Expenditure Plan.
DISADVANTAGES:
The community may oppose an additional ½ cent sales tax. The Maintenance of Effort
element of the sales tax may dictate that each Agency receiving revenues for “Local
Projects” shall annually maintain, at a minimum, the same level of local fully discretionary
general fund revenues that were expended on average for fiscal years 2021 -22, 2022-
23, 2023-24, 2024-25 and 2025-26, for transportation purposes.
ENVIRONMENTAL REVIEW:
Adopting this Resolution is exempt from CEQA on the basis that it can be seen with
certainty that there is no possibility that the activity in question may have a significant
effect on the environment. (State CEQA Guidelines, § 15061, subd. (b)(3).)
Page 45 of 139
Item 11.a.
City Council
San Luis Obispo Council of Governments (SLOCOG) Transportation Expenditure
Plan
February 24, 2026
Page 4
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
ATTACHMENTS:
1. Resolution
2. Final Draft Transportation Expenditure Plan
Page 46 of 139
ATTACHMENT 1
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE APPROVING THE SAN LUIS OBISPO COUNCIL OF
GOVERNMENTS (SLOCOG) FINAL DRAFT TRANSPORTATION
EXPENDITURE PLAN (PLAN) AND AUTHORIZING SLOCOG TO USE
THE CITY’S LOGO ON WEBSITE AND INFORMATIONAL MATERIALS
WHEREAS, the streets, roads, highways, transit systems, bicycle and pedestrian facilities
within the incorporated and unincorporated areas of San Luis Obispo Cou nty are of
regional concern and are essential to the safety, mobility, economic vitality, environmental
sustainability, and quality of life of residents, businesses, visitors, seniors, veterans, and
persons with mobility challenges; and
WHEREAS, the Legislature of the State of California has authorized counties to establish
voter-approved local transportation sales taxes pursuant to Public Utilities Code Division
19 (commencing with Section 180000) and Revenue and Taxation Code Part 1.6
(commencing with Section 7251); and
WHEREAS, keeping roads and highways in good condition and enhancing mobility helps
protect public safety by allowing police, firefighters, and ambulances to respond quickly
to emergencies and ensuring first responders are not stuck in traffic or slowed down by
failing infrastructure; and
WHEREAS, a county-wide half-cent sales tax is proposed for voter consideration on the
November 2026 ballot; and
WHEREAS, the ½ cent sales tax is paid by both residents and visitors shopping in San
Luis Obispo County, including visitors, to ensure all users of local roads and
transportation infrastructure contribute; and
WHEREAS, by law, this money must stay in San Luis Obispo County for local
transportation improvements only and cannot be taken away by the State or used for
other purposes; and
WHEREAS, pursuant to Public Utilities Code Section 180206, and through extensive
public engagement and coordination with all incorporated cities and the County of San
Luis Obispo, SLOCOG has prepared a countywide Transportation Expenditure Plan
which guides the investment of revenues generated by this Ordinance, provides for locally
controlled funding for transportation repairs and improvements, and requires strict fiscal
accountability protections, including a Citizen's Oversight Committee, annual
independent audits, and public disclosure of all spending; and
WHEREAS, it is the intent of the voters and the Authority/SLOCOG that revenues
generated by this Ordinance supplement, and not supplant, existing transportat ion
funding.
Page 47 of 139
RESOLUTION NO.
PAGE 3
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo
Grande does hereby:
1. All recitals above are true and correct and incorporated herein.
2. Approve the San Luis Obispo Council of Governments (SLOCOG) final draft
Transportation Expenditure Plan (Plan); and
3. Authorize SLOCOG to use the city’s logo on website and informational materials.
On motion of Council Member , seconded by Council Member ,
and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this 24th day of February, 2026.
Page 48 of 139
RESOLUTION NO.
PAGE 4
CAREN RAY RUSSOM, MAYOR
ATTEST:
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
ISAAC ROSEN, CITY ATTORNEY
Page 49 of 139
February 5, 2026 SLO County Transportation Expenditure Plan 1
San Luis Obispo County Transportation
Expenditure Plan
I.Introduction
San Luis Obispo County’s transportation system is essential to the safety, mobility, and
economic vitality of its residents, businesses, and visitors. Yet existing state and federal
revenues are inadequate to maintain local streets and roads, operate reliable transit, and
deliver major regional improvements.
This Transportation Expenditure Plan establishes a dedicated local funding source — a
voter-approved ½-cent transactions and use tax — projected to generate approximately
$35 million per year. All revenues will remain in San Luis Obispo County and may only be
used for transportation purposes.
The Plan emphasizes geographic equitable distribution of funds, fairness, transparency,
and strong taxpayer safeguards while ensuring flexibility to leverage state and federal
funds.
II.Revenue Distribution
Revenues shall be allocated as follows:
A.55% Local Road Repairs and
Improvements distributed by population
to each city and the County. (Reviewed
every ten years based on census data 1).
B.40% Regional Corridor
Improvements distributed by subregion
population within the areas defined as
shown.
C.4% Mobility Services for Seniors,
Veterans and Mobility Challenged
D.1% Administration
1 Should a new city become incorporated, the percentages would be adjusted to reflect the updated
population distribution.
ATTACHMENT 2
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February 5, 2026 SLO County Transportation Expenditure Plan 2
III. Eligible Uses of Funds
Local Road Repairs and Improvements (55%)
Funds are distributed by population to the cities and the County. County funds shall be
distributed equally by Supervisorial District over the life of the measure as monitored and
reported by the Citizens Oversight Committee. Funds may be used for:
A. Local road maintenance, rehabilitation, and repair.
B. Safe Routes to School and Safe Routes to College programs.
C. Local intersections, operational and traffic safety improvements.
D. Bridge safety and seismic retrofits.
E. Bicycle and pedestrian improvements (sidewalks, crosswalks, multi-use paths).
F. Community enhancements tied to transportation
(streetscape, lighting, landscaping, wayfinding).
G. Traffic signal improvements and synchronization.
H. Piers, walkways and other pedestrian or bike paths in and around waterfront and
river areas.
I. Transit services including local trolley services may be funded if desired by a City.
Regional Corridor Improvements (40%)
Regional project funds shall be distributed by population among subregions over the life of
the measure as monitored and reported by the Citizens Oversight Committee and used for:
A. Highway and major corridor congestion relief such as van or carpool lanes or other
congestion relief measures.
B. Safety and interchange improvements.
C. Regional bicycle and pedestrian connectors between communities like the Bob
Jones Trail.
D. Interagency Transit Access.
E. Mitigation impacts for proposed improvements.
F. Other projects consistent with the adopted Regional Transportation Plan (RTP).
Mobility Services for Seniors, Veterans and Mobility Challenged (4%)
Funds shall support improvements to mobility programs that prioritize services for seniors,
veterans, and mobility challenged.
Administration (1%)
No more than 1% of annual revenues shall be allocated by the Authority for administration,
reporting, auditing, and program oversight.
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February 5, 2026 SLO County Transportation Expenditure Plan 3
IV. Governing Board and Organizational Structure
The San Luis Obispo Council of Governments (SLOCOG) serves as the designated Local
Transportation Authority for San Luis Obispo County and is responsible for administering
the Transportation Measure in compliance with Public Utilities Code (PUC) 180000 et
seq. Upon voter approval of the Transportation Measure, the Board of Directors of
SLOCOG will serve as the Authority Board, hereafter the Authority, and will oversee its
implementation in accordance with the plans and programs detailed in this and future
updates of the Expenditure Plan.
This Expenditure Plan provides for the creation of a Citizens’ Oversight Committee to
ensure transparency and accountability. Details regarding the Committee are contained
in this plan (Section XIV). The Biennial Implementation Plan will be prepared and updated
by SLOCOG staff and approved by the Authority Board as per the Ordinance Section 14.
Per PUC 180000, the Authority’s governing board will include representation as follows:
• Five (5) members of the San Luis Obispo County Board of Supervisors
• One (1) member representing each incorporated city within San Luis Obispo
County—Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo
Beach, and San Luis Obispo—appointed by their respective city councils.
Alternates to the regular members may participate in accordance with SLOCOG bylaws.
Should another city become incorporated, it will have one seat on the Authority Board.
V. Maintenance of Effort (MOE)
The enabling legislation in Public Utilities Code PUC 180001(e) states:
It is the intent of the Legislature that funds generated pursuant to this division be
used to supplement and not replace existing local revenues used for transportation
purposes.
Each Agency receiving revenues for “Local Projects” shall annually maintain, at a
minimum, the same level of local fully discretionary general fund revenues that were
expended on average for fiscal years 2021/22, 2022/23, 2023/24, 2024/25 and 2025/26, for
transportation purposes. Dedicated funds for transportation such as gas tax revenues are
not counted as general fund revenues. Transfers into the general fund will not be counted
as general fund revenues. Grant awards and general fund revenues used as matching
funds for grant awards will not be counted as general fund revenues. Revenue from general
or special tax measures over and above the agency’s baseline tax of 1 ½% will not be
counted as part of general fund revenues for the purposes of MOE.
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February 5, 2026 SLO County Transportation Expenditure Plan 4
Unusual one-time general fund allocations that have been expended for transportation
purposes may be exempted prior to determining the Agency’s average expenditure for the
five fiscal years noted above at the discretion of the Authority.
An agency petitioning for an exception under this provision must supply evidence of the
need for special consideration, and the petition must be approved by a majority vote of the
Authority Board.
The Authority shall not allocate any Net Revenues to any jurisdiction for any fiscal year until
that jurisdiction has certified to the Authority that it has included in its budget for that fiscal
year an amount of local discretionary funds for streets and roads purposes at least equal
to the level of its maintenance of effort requirement. An annual independent audit will be
conducted by the Authority to verify that the maintenance of effort requirements are being
met by the jurisdiction. Any Net Revenues not allocated pursuant to the maintenance of
effort requirement shall jurisdictions be allocated to the remaining eligible jurisdictions
according to the formula described in the Section III.
Exceptions
Subject to Authority approval, if any local jurisdiction had extraordinary local discretionary
fund expenditures during any fiscal year it may determine that year’s minimum expenditure
base level of local discretionary funds by:
(a) subtracting those extraordinary expenses funding, assessment district
contributions, development impact funds, redevelopment agency contributions, or
other non-recurring contributions) from its total expenditures; or
(b) petitioning the Authority for special consideration. It is possible that a local
jurisdiction may need to revise its minimum expenditure base beyond the
subtraction of extraordinary expenses. In this instance, the Authority may allow the
establishment of a new base for that jurisdiction's Maintenance of Effort
requirement.
A local jurisdiction petitioning the Authority under this provision must supply evidence of
the need for special consideration and the petition must be approved by a majority vote of
the Authority.
VI. Requirements for Eligible Jurisdictions
To be eligible to receive Net Revenues, a jurisdiction shall satisfy and continue to satisfy
the following requirements.
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February 5, 2026 SLO County Transportation Expenditure Plan 5
A. Mitigation Fee Program. Assess traffic impacts of new development and require
new development to pay a fair share of necessary transportation improvements
attributable to the new development.
B. Circulation Element. Adopt and comply with its Circulation Element as part of
the jurisdiction’s General Plan,
C. Capital Improvement Program. Adopt and update a minimum Five-Year Capital
Improvement Program (CIP). The CIP shall include all capital transportation
projects, including projects funded by Net Revenues, and shall include
transportation projects required to demonstrate compliance with pavement
management requirements.
D. Pavement Management Plan. Adopt and update a Pavement Management Plan
and provide regular reporting on the status of road pavement conditions and
implementation of the Pavement Management Plan.
E. Expenditure Report. Adopt an Expenditure Report to account for Net Revenues,
developer/traffic impact fees, and funds expended by the Eligible Jurisdiction which
satisfy the Maintenance of Effort requirements. The Expenditure Report shall be
submitted by the end of six (6) months following the end of the jurisdiction’s fiscal
year and include the following:
1. All Net Revenue fund balances and interest earned.
2. Expenditures identified by type (i.e., capital, operations, administration,
etc.), and program or project.
F. Project Final Report. Provide Authority with a Project Final Report for regional
projects within six months following completion of a project funded with Net
Revenues.
G. Time Limits for Use of Net Revenues for Regional Projects.
1. Agree that Net Revenues for Regional Projects shall be expended or
encumbered no later than the end of the fiscal year for which the Net
Revenues are programmed. A request for extension of the encumbrance
deadline for no more than thirty-six months may be submitted to the
Authority no less than ninety days prior to the deadline. The Authority may
approve one or more requests for extension of the encumbrance deadline.
2. In the event the time limits for use of Net Revenues for Regional Projects
are not satisfied then any retained Net Revenues that were allocated to an
Eligible Jurisdiction and interest earned thereon shall be returned to the
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February 5, 2026 SLO County Transportation Expenditure Plan 6
Authority and these Net Revenues and interest earned thereon shall be
available for allocation to any project within the same source program.
H. No Supplanting of Funds. Agree that Net Revenues shall not be used to
supplant developer funding which has been or will likely be committed for any
transportation project.
I. Public Notice of Use of Measure Funds. Member agencies will provide the
public with planned use of measure funding as part of its annual or biennial budget
process. This includes each City and Community Advisory Council will receive at a
minimum, twice per programming year presentations from jurisdictional staff to
review proposed investments prior to annual allocations.
Determination of Non-Eligibility
A determination of non-eligibility of a jurisdiction shall be made only after a hearing has
been conducted and a determination has been made by the Authority that the jurisdiction
is not an Eligible Jurisdiction as provided hereinabove.
VII. Taxpayer Safeguards
A. A transportation special revenue fund (the “Local Transportation Authority
Special Revenue Fund”) shall be established to maintain all Revenues.
B. Accounting Receipt, maintenance and expenditure of Net Revenues shall be
distinguishable in each jurisdiction’s accounting records from other funding
sources, and expenditures of Net Revenues shall be distinguishable by program or
project. Interest earned on Net Revenues allocated pursuant to the Ordinance shall
be expended only for those purposes for which the Net Revenues were allocated.
C. No Net Revenues shall be used by a jurisdiction for other than transportation
purposes authorized by the Ordinance. Any jurisdiction which violates this provision
must fully reimburse the Authority for the Net Revenues misspent and shall be
deemed ineligible to receive Net Revenues for a period of five (5) years.
D. A Citizens Oversight Committee (“Committee”) shall be established to provide an
enhanced level of accountability for expenditure of Revenues under the Ordinance.
The Committee will help to ensure that all voter mandates are carried out as
required. The roles and responsibilities of the Committee, the selection process for
Committee members and related administrative procedures shall be carried out as
described in the Section XIII below and Ordinance Section 15.
E. A performance assessment shall be conducted at least once every five years to
evaluate the efficiency, effectiveness, economy and program results of the
Authority in satisfying the provisions and requirements of the Investment Summary
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February 5, 2026 SLO County Transportation Expenditure Plan 7
of the Plan, the Plan and the Ordinance. A copy of the performance assessment
shall be provided to the Committee.
F. Annual status reports regarding the regional corridor projects and improvements
shall be brought before the Authority by local agencies and Authority staff at least
annually in public meetings.
G. Annual Report Annually the Authority shall publish a report on how all Revenues
have been spent and on progress in implementing projects in the Plan and shall
publicly report on the findings and posted on the agency website.
VIII. Ten-Year Comprehensive Program Review
At least every ten years the Authority shall conduct a comprehensive review of all projects
and programs implemented under the Plan to evaluate the performance of the overall
program and may revise the Plan to improve its performance. The review shall include
consideration of changes to local, state and federal transportation plans and policies;
changes in land use, travel and growth projections; changes in project cost estimates and
revenue projections; right-of-way constraints and other project constraints; level of public
support for the Plan; and the progress of the Authority and jurisdictions in implementing
the Plan. The Authority may amend the Plan based on its comprehensive review, subject to
the requirements of Section IX: Reporting, Implementation and Amendments.
IX. Reporting, Implementation and Amendments
Administration
In compliance with state and federal requirements, SLOCOG regularly prepares a Regional
Transportation Plan (RTP) that identifies priority projects across all transportation modes,
including highways, local roads, public transit, bikeways, and aviation.
All updates to the Expenditure Plan will undergo public review and hearings. Candidate
projects and priorities may evolve, but the county’s extensive transportation needs will
ensure robust use of all available funding, including sales tax revenues. During each
update, the Authority will review investments across multiple transportation modes to
ensure efficiency and equity in addressing mobility needs throughout San Luis Obispo
County.
Annual Report
Each year, the Citizens’ Oversight Committee (Section XIV) reviews expenditures and
communicates results to the public through an Annual Report.
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February 5, 2026 SLO County Transportation Expenditure Plan 8
Amendment Process
As specified in PUC Section 180207:
(a) Once per calendar year, the Authority may review and propose amendments to
the county’s transportation expenditure plan to incorporate additional revenues,
account for unanticipated funds, or respond to unforeseen circumstances.
Amendments adopted late in the year will not preclude additional amendments in
the following year.
(b) The Authority must notify the County Board of Supervisors and each city council,
providing copies of proposed amendments for their review.
(c) Amendments become effective 45 days after notification.
Voter approval (2/3 majority) is required for changes to funding categories or overall
allocation formulas as per Ordinance Section 10.
Biennial Implementation Plan
At least once every two years, the Authority will prepare and adopt a Measure TBD
Implementation Plan. This plan will include a financial component consistent with both
the SLOCOG Regional Transportation Improvement Program (RTIP) and the STIP.
Process steps include:
A. SLOCOG staff, working with member agencies and stakeholders, will draft and
update the Implementation Plan biennially.
B. The Authority Board will review the Draft Implementation Plan, hold public hearings,
and incorporate feedback.
C. Following review, the Authority formally adopts the Implementation Plan.
Implementation Guidelines
Following voter approval of this Measure, the Authority shall adopt Implementation
Guidelines to administer and implement the Expenditure Plan in a manner consistent with
the voter-approved purposes of this Measure. The Implementation Guidelines shall
establish procedures for project programming and delivery, eligibility requirements, fund
distribution, accountability and reporting, audits, amendments, and other administrative
matters necessary to ensure effective and transparent use of Measure revenues. The
Implementation Guidelines shall not expand or alter the uses of funds authorized by this
Measure and shall be adopted by the governing board at a public meeting following a
noticed public process.
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February 5, 2026 SLO County Transportation Expenditure Plan 9
X. Bonding Authority
To reduce overall costs by advancing construction timelines, the Authority shall have the
option to sell or issue, at any time, and from time to time, including on or before the
collection of the taxes authorized by the Ordinance Section 16, bonds, notes or other
evidences of indebtedness, including capital appreciation bonds, payable from and
secured by the proceeds from the sales taxes authorized by this Ordinance and from the
proceeds of the existing Measure TBD sales taxes, in order to finance and refinance the
transportation projects identified in the Transportation Expenditure Plan. Bonding
indebtedness shall be limited to 35% of net sales measured at the end of the 30-year
program. An additional bonds test (ABT) no lower than 1.5x Maximum Annual Debt Service
will be measured against projected revenues for any consecutive 12-month period in the
prior 18 months.
Should the tax be ended by voter action, the obligation to repay the bond debt remains with
the agency, in this case the Authority and its member agencies.
XI. Independent Financial Audits
If the Transportation Measure is approved by the voters, the Authority will
conduct independent financial audits of all revenues and expenditures associated with the
measure in accordance with Public Utilities Code 180000 et seq. These audits will ensure
full transparency and accountability in the use of voter-approved sales tax revenues.
The results of the audits will be presented annually to the Authority Board and made
available to the public, reinforcing confidence in the administration of the Transportation
Measure. Findings will also be shared with the Citizens’ Oversight Committee to support
their independent review of expenditures and compliance with the Expenditure Plan.
XII. Administration Program – 1% of Measure Revenues
To effectively manage and implement the Transportation Measure, the Authority will cap
administration costs at no more than 1% of annual sales tax revenues to administrative
activities. This allocation supports the necessary planning, oversight, and program
development functions required for successful execution of the measure.
Key administrative responsibilities of the Authority include:
A. Annual Work Program and Budget
Prepare and adopt an annual work program and budget outlining planned
expenditures, oversight activities, and administrative costs.
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February 5, 2026 SLO County Transportation Expenditure Plan 10
B. Allocation Program Requirements and Focused Studies
Develop requirements for each funding program established by the Regional
Programs allowed in the Expenditure Plan and undertake specialized studies
needed to implement those programs effectively.
C. Biennial Implementation Plan
Prepare and update the Transportation Measure Implementation Plan every two
years, aligning it with the Regional Transportation Improvement Program
(RTIP) and State Transportation Improvement Program (STIP).
D. Regional Project Prioritization
Establish and update priority lists for regional projects and rehabilitation projects,
in coordination with member jurisdictions and consistent with Expenditure Plan
goals.
E. Independent Annual Audit
Conduct an independent audit of all Transportation Measure funds to ensure
compliance, fiscal integrity, and accountability to the public.
F. Public Outreach and Communication
Carry out ongoing outreach and public education efforts to keep residents informed
about project progress, financial performance, and planned updates.
G. Bond Issuance for Accelerated Delivery
Issue bonds when appropriate to expedite project delivery, reducing overall project
costs by leveraging future revenues for near-term improvements.
H. Revenue Allocation to Local Jurisdictions
Distribute Transportation Measure proceeds to incorporated cities and the county
in accordance with the formulas and criteria established in the Expenditure Plan.
I. Support for Oversight Committees and Related Technical Assistance
Provide staff support to advisory committees and furnish technical assistance to
member jurisdictions to ensure consistent, equitable, and effective program
implementation.
XIII. Citizens’ Oversight Committee
Committee Purpose
A. To provide fiscal oversight on the implementation of the Transportation Expenditure
Plan ensuring that funds are spent in accordance with the approved Plan.
B. To inform the public and confirm that revenues and expenditures from the
Transportation Measure are spent as promised to San Luis Obispo County voters.
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February 5, 2026 SLO County Transportation Expenditure Plan 11
Committee Formation
A. The Committee will be formed within six (6) months following voter approval of the
Transportation Measure in San Luis Obispo County.
B. The Committee shall be a permanent component of the Expenditure Plan and
cannot be eliminated by amendment.
C. Meetings will begin when Transportation Measure revenues are recommended for
expenditure, including Implementation Plan updates.
Selection and Duties of Committee Chair and Vice Chair
A. The Committee will select a Chair and Vice Chair from among its members, each
serving a one-year term.
B. Chair Duties: Call meetings, set agendas, and preside over meetings.
C. Vice Chair Duties: Perform the Chair’s duties in the Chair’s absence.
Committee Meetings
A. The Committee will hold at least two formal meetings annually, with additional
meetings scheduled as needed.
B. All meetings will comply with the Brown Act (open meeting requirements).
C. Meetings will be conducted in accordance with Robert’s Rules of Order.
Subcommittee Requirements
A. The Committee may form subcommittees to address specific tasks or focus areas.
B. All subcommittees will consist of an odd number of members to ensure clear
decision-making.
The Committee will reflect the geographic and demographic diversity of San Luis Obispo
County and consist of 12 members. Each represented organization will nominate its
representative, with final appointments approved by the Authority Board.
Membership Composition:
A. One resident representative appointed by each incorporated city (Arroyo Grande,
Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, San Luis Obispo)
and one member from each of San Luis Obispo County’s Supervisorial District’s
within the unincorporated areas.
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February 5, 2026 SLO County Transportation Expenditure Plan 12
B. The Authority Board will review and appoint these members. If any jurisdiction is
unable to appoint a representative, THE AUTHORITY may fill the position through an
open application process. Should a new City become incorporated, a
representative from that jurisdiction shall be appointed by the City.
Quorum
A. A quorum will consist of no fewer than seven (7) members.
B. Actions may be approved by a simple majority of members present, provided the
quorum is met.
Term of Membership
A. Members serve two-year terms, with a maximum of eight consecutive years of
service.
B. To establish staggered terms, the initial appointments will be divided so that half
serve one-year terms and half serve two-year terms, determined by random
selection.
C. Proxy voting is not permitted.
Eligibility
A. Must be a U.S. citizen, 18 years or older, and a resident of San Luis Obispo County.
B. Cannot be an elected official of San Luis Obispo County or its cities.
C. Cannot be an employee of state, county, or city government agencies within San
Luis Obispo County (except employees of educational institutions).
Staffing
A. SLOCOG staff will provide technical and administrative support, including
preparation of agendas, meeting materials, and public communications.
B. Administrative costs for staffing will be funded through the Transportation
Measure’s administrative allocation.
C. Expert staff and consultants may be invited to present information or analyses as
needed.
Responsibilities
A. Reviewing and commenting on independent financial and performance audits of
Measure funds.
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February 5, 2026 SLO County Transportation Expenditure Plan 13
B. Reviewing periodic reports, studies, and plans related to Measure revenues and
expenditures.
C. Ensuring that expenditures are consistent with the Expenditure Plan.
D. Conducting an annual review of sales tax revenue use and publicly reporting
findings.
E. Presenting recommendations and findings in a formal annual report to the public
and Authority Board.
F. Accessing information from the Authority’s independent auditor and requesting
additional information as necessary to fulfill oversight responsibilities.
G. Remaining informed of advancements in transportation planning and finance to
ensure oversight remains relevant and effective through the duration of the
Measure.
XIV. Measure Duration
This Transportation Expenditure Plan shall remain in effect for 30 years as approved by San
Luis Obispo County voters.
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