CFAC backs Measure Q allocations, approves police radio upgrade budget and urges long‑term fiscal planning

Morro Bay’s finance committee on Monday approved recommendations to forward a modified 2025–26 Measure Q&E budget to the City Council, authorized the purchase and financing approach for a police radio upgrade tied to a 2020 state encryption mandate, and unanimously asked staff to pursue longer‑term revenue and capital planning.

The committee voted to approve three packages of recommendations: (1) direct staff and council to pursue a 10‑year review of projected revenues/expenditures, restart a capital needs assessment and evaluate city real property for redevelopment or monetization; (2) adopt the proposed Measure Q&E budget for FY25–26 with modifications — notably rejecting an additional $1 million paving appropriation, approving the police radio upgrade project (estimated at roughly $1.3 million) and asking that sidewalk and street‑tree funds be focused on downtown revitalization; and (3) request harbor fund policy work including more granular revenue forecasts, reserve policy alignment with other enterprise funds, and re‑examination of the North Pier replacement’s long‑term costs. Each motion passed on voice/roll‑call votes recorded as 5–0.

Police radio upgrade tied to state mandate: Chief Watkins outlined a 2020 state requirement to protect personally identifiable information on radio channels. The city’s current analog radio system cannot be encrypted; a digital encrypted platform requires additional repeaters and two new antenna locations to achieve full coverage in Morro Bay’s terrain. The chief summarized options: implement digital encrypted radios and add towers and repeaters (project estimate ~$1.3 million), or adopt a department policy limiting broadcast of personal information over analog channels and routing sensitive checks through dispatch or cell phones — a practice she said would raise officer‑safety concerns. “The one and only other option is to provide a policy that requires officers to not broadcast personal identifiable information,” Chief Watkins said, explaining her preference for the encrypted system for safety and operational reasons.

Financing and grants: Staff said towers and associated infrastructure are the expensive pieces and that most available grants do not cover tower construction; the city will pursue state and federal funding where possible but staff advised the committee to commit to the project early to be competitive for earmarks. The committee recommended staff pursue a government capital loan if grant funding is not available, with the city installing the system in FY25 and beginning loan repayment in 2026 under a five‑year schedule.

Measure Q allocations and capital priorities: Director Conriott walked members through department allocations and carryforward capital. The approved Q&E package funds public safety, public works and harbor priorities but suspended an additional $1M paving appropriation that members judged likely to remain unspent given existing carryover. The committee also asked staff to concentrate sidewalk and street‑tree allocations in a downtown corridor (Maine/Morro Bay intersection) to create a visible revitalization outcome rather than dispersing smaller projects across the city.

Harbor and enterprise follow‑ups: Members asked for a more granular harbor revenue forecast tied to an updated appraisal process and recommended the harbor adopt reserve categories analogous to water and sewer funds. They also asked staff to re‑examine the North Pier replacement costs and long‑term replacement funding obligations before committing to major capital; staff agreed to bring follow‑up analysis to council.

Votes at a glance: The committee recorded unanimous votes on the minutes, the long‑term planning recommendation, the modified Measure Q&E budget and the harbor recommendations; each vote was recorded 5–0 in the transcript roll call.

What happens next: The committee directed staff to forward the recommendations to the City Council and to continue the revenue‑enhancement working group’s outreach; staff will also refine grant and loan approaches for the radio project and provide follow‑up cost estimates and reserve policy proposals to council.