A regular Council meeting typically held in November is devoted to a comprehensive review of the status of current City plans, goals, policies, and programs. 

This is an especially appropriate start to the budget process, as the Council goal-setting process should take into consideration the City’s adopted long-term plans, current two-year goals, and an updated economic outlook.

Accordingly, staff typically present reports on the following:

1. Current Year 1st Quarter Review. Staff will present a brief budget update of the City's current financial position as compared with the adopted Supplemental Budget for the current fiscal year.
2. Strategic Scan/Setting the Stage. Staff typically provides an overview of important statistical information that provides trends and patterns pertaining to social, economic, and environmental factors. This helps set the stage for an overview of the City's core services and how the budget is allocated and offers important context for decision making through the financial planning process.
3. Status of Major City Goals. This meeting will give an opportunity for staff to give an update on Major City Goals. 
4. Status of General Plan Programs. As in past years, staff typically presents an overview of the status of each General Plan program in each of the ten elements (over 400 programs in total). Organized by element, staff will provide a short summary of each program, whether it has been completed, and if not, a high-level assessment of how challenging it will be to complete.

The Community Priorities Survey is typically released online in mid-November and remains open for one month to give community members ample time to participate and for staff to review results typically in December and January. Advisory Body goals are typically provided to staff by mid-December, so that they can be incorporated and considered during the next steps. 

This meeting is dedicated to generating policy guidance from Council that will serve as the foundation for the City’s budget and goal-setting process. Staff typically covers the following topics at this workshop:

1. Outreach and goal-setting overview. Staff will present a proposed approach for the community forum and the Council goal-setting workshop. 
2. Financial Plan policies & organizational structure. This may include proposed changes to the existing fund balance targets for enterprise funds and the capital replacement funds. This also includes a financial review the organization of the Financial Plan and obtain Council guidance regarding the style of presentation expected or preferred by Council.
3. Economic forecast and trends The City's five-year forecast will be presented at the mid-year budget review with audited financials, typically in February.
4. Policy framework. Council and staff will discuss considered options and policy framework for paying down the unfunded liabilities. Based on Council feedback, staff would return later with the plan reflecting these options. Getting guiding principles direction from the Council in February will be helpful in crafting the recommendations contained when Strategic Budget Direction is sought later in the year. 

The City of San Luis Obispo's Community Forum typically takes place in January via an in-person public event where community members can discuss suggested goals and work programs from Council Advisory Bodies, community groups and individuals who completed the online Community Priorities Survey. 

Staff has researched the use of digital technologies and plan to use real-time data gathering tools at a community forum, with options to accommodate those who aren’t able or comfortable using the digital tools. 

The Mid-Year Review and review of the updated Five-Year Forecast, typically scheduled in February, provides the City Council with an early opportunity to provide guiding principles and direction for paying down unfunded liabilities and allocating resources efficiently with the 2023-25 Financial Plan, focusing on community priorities.

Following the receipt of written and oral comments during the Community Forum, the Council goal-setting workshop is also typically held in February using an independent facilitator.

This is usually an all-day public workshop to answer the question, “What are the most important, highest priority things for the City to accomplish over the next two years?”

Using an independent facilitator allows all Council members to participate fully in the process and allows staff to devote their efforts to listening to the discussion. Moreover, the facilitator can assist the Council ensuring that the number and scope of the goals established are appropriate.

Typically in April, the City Council is provided with an opportunity to review the draft work programs and associated financial resources proposed to accomplish Major City Goals established by the City Council earlier in the year.

At this stage of the process, the City Council provides direction on any changes needed to refine these work programs and resource allocations to better achieve the desired outcomes.

Additionally, the City Council is asked to provide the City Manager with the key policy direction needed to allocate resources in line with Council’s expectations or to further amend budget or fiscal policies that align with Council direction.

This process is extremely helpful so that the Preliminary Financial Plan that is presented to the City Council and community (typically in May) mirrors the Council’s expectations as much as possible. 

Budget hearings (also known as “Fund Reviews” including the City’s four enterprise funds) are typically scheduled in June, for final approval of the Financial Plan before the next fiscal year begins.