Avalon City Council
June 16, 2026

Reserve Funding
To / (From) Sewer Fund - 107 $3,114 $58,673 $53,035 $40,207 $247,866 $297,705 To! (From) Sewer Capital Reserve Fund - 108 0 0 0 0 0 0 To / (From) WWTP Replacement Fund - 110 0 0 0 0 0 0
Total Resetve Funding $3,114 $58,673 $53,035 $40,207 $247,866 $297,705 Total Revenue Requirement $3,525,210 $3,877,731 $4,236,125 $4,634,733 $4,916,576 $5,218,712 Bal./(Def.) of Funds $0 ($306,775) ($642,694) ($1,010,524) ($1,264,908) ($1,534,555) Rate Adj. as a % of Rate Rev. 0.0% 9.5% 19.9% 31.3% 39.2% 47.5% Proposed Rate Adjustment 0.0% 9.5% 9.5% 9.5% 6.0% 6.0%
Months ofAdjustment 12 12 12 12 12 12
AddI Revenue from Adj. $0 $306,775 $642,694 $1,010,524 $1,264,908 $1,534,555 Total Bal./(Def.) of Funds $0 ($0) ($0) $0 $0 $0
Additional Rate Increase Needed 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% DSC
Before
Ratio
Rate Adjustment N/A N/A N/A N/A N/A N/A
After Rate Adjustment N/A N/A N/A N/A N/A N/A
Avg Res Annual Bill $1,097.50
After Proposed Rate Adjustment $1,097.50 $1,201.76 $1,315.93 $1,440.94 $1,527.40 $1,619.04 Annual $ Change 104.26 114.17 125.01 86.46 91.64
Cumulative Change 104.26 218.43 343.44 429.90 521.54
Sof9 06/01/2026
City of Avalon
Sewer Rate Study Page 4 of 4
Exhibit 3
Revenue Requirement
Budget Projected
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 Notes Reserve Funds
Total Beginning Balance $1,564,046 $1,442,161 $1,022,397 $772,299 $905,412 $1,308,872 Sewer Fund -107
Beginning Balance $1,564,046 $1,442,161 $1,022,397 $772,299 $905,412 $1,308,872 Plus: To Reserves 3,114 58,673 53,035 133,113 403,459 503,544 Interfund Loan Proceeds 0 0 0 0 0 0
Less: Uses of Funds (125,000) (478,438) (303,133) 0 0 0 Ending Balance $1,442,161 $1,022,397 $772,299 $905,412 $1,308,872 $1,812,416 Target: 180 days of Q&M $1,625,965 $1,700,905 $1, 779,332 $1,861,410 $1,947,309 $2,037,209 Sewer Capital Reserve Fund - 108
Beginning Balance $0 $0 $0 $0 $0 $0
Plus:To Reserves 0 0 0 0 0 0
Less: Uses of Funds 0 0 0 0 0 0
Ending Balance $0 $0 $0 $0 $0 $0
WWTP Replacement Fund - 110
Beginning Balance $0 $0 $0 $0 $0 $0
PIus:To Reserves 0 0 0 0 0 0
Less:UsesofFunds 0 0 0 0 0 0
Ending Balance $0 $0 $0 $0 $0 $0
Total Ending Balance $1,442,161 $1,022,397 $772,299 $905,412 $1,308,872 $1,812,416 6of9 06/01/2026
City of Avalon
Sewer Rate Study
Exhibit 4
Capital Improvement Plan
WWTP Headworks Rehabilitation
Secondary CTarifier Rehabilitation
Collection and Distribution System (75%)
Treatment Plant (60%)
Total Capital Projects
Future Unidentified Projects
Inflation 3.5%
To Cash Reserve $0 $0 $0 $92,906 $155,593 $205,839
Total Capital Improvement Projects $350,000 $848,438 $878,133 $820,000 $720,000 $790,000 Less: Outside Funding Sources
Sewer Fund - 107 $125,000 $478,438 $303,133 $0 $0 $0
Sewer Capital Reserve Fund - 108 0 0 0 0 0 0
WWTP Replacement Fund -110 0 0 0 0 0 0
NewSRFLoans 0 0 0 0 0 0
New Revenue Bonds 0 0 0 0 0 0
Total Outside Funding Sources $125,000 $478,438 $303,133 $0 $0 $0 Rate Funded Capital $225,000 $370,000 $575,000 $820,000 $720,000 $790,000 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-3 1 $100,000 $0 $0 $0 $0 $0
250,000 0 0 0 0 0
0 323,438 334,758 277,179 215,161 222,691
0 525,000 543,375 449,915 349,246 361,470
$350,000 $848,438 $878,133 $727,094 $564,407 $584,161
$0 $0 $0 $0 $0 $0
7 of 9 06/01/2026
City of Avalon Page 1 of 1
Sewer Rate Study
Exhibit S
Revenues at Present Rates
Effective 7/1/2025 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Total Fixed Charge Unit Rate
Residential (DU) $1097.50 2100 2100
Commercial
Public Shower (per shower) $364.30 44 44
Hotel (per room) 603.60 823 823
Laundries (per wash unit) 1,481.60 41 41
Shops/Offices (each) 1,097.50 111 111
Combined Shops/Offices ($11,000 sq ft) 702.35 105 105
Take-out Restaurant (each) 1,666.00 24 24
Churches (each) 2,218.75 3 3
Bar/Restaurant (<100) (each) 3,300.00 15 15
Bar/Restaurant (>100) (each) 4,934.40 12 12
3,278 0 0 0 0 0 0 0 0 0 0 0 3,278
TotolFixedChargeRevenue $3,229,210 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,229,210 Total Revenue $3,229,210 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,229,210 Customer
Summary
Residential 2,100 0 0 0 0 0 0 0 0 0 0 0 175
Commercial
Public Shower 44 0 0 0 0 0 0 0 0 0 0 0 4
Hotel 823 0 0 0 0 0 0 0 0 0 0 0 69
Laundries 41 0 0 0 0 0 0 0 0 0 0 0 3
Shops/Offices 111 0 0 0 0 0 0 0 0 0 0 0 9
Combined Shops/offices 105 0 0 0 0 0 0 0 0 0 0 0 9
Take-out Restaurant 24 0 0 0 0 0 0 0 0 0 0 0 2
Churches 3 0 0 0 0 0 0 0 0 0 0 0 0
Bar/Restaurant (<100) 15 0 0 0 0 0 0 0 0 0 0 0 1
Bar/Restaurant (>100) 12 0 0 0 0 0 0 0 0 0 0 0 1
3,278 0 0 0 0 0 0 0 0 0 0 0 273
Total Revenue
Residential $2,304,750 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2304350 Commercial
Public Shower 16,029 0 0 0 0 0 0 0 0 0 0 0 16,029
Hotel 496,763 0 0 0 0 0 0 0 0 0 0 0 496,763
Laundries 60,746 0 0 0 0 0 0 0 0 0 0 0 60,746
Shops/Offices 121,823 0 0 0 0 0 0 0 0 0 0 0 121,823
Combinedshops/Offices 73,747 0 0 0 0 0 0 0 0 0 0 0 73,747 Take-out Restaurant 35,984 0 0 0 0 0 0 3 0 0 0 0 39,984 Churches 6,656 0 0 0 0 0 0 0 0 0 0 0 6,656
Bar/Restaurant (<100) 49,500 0 0 0 0 0 0 0 0 0 0 0 45,500 Bar/Restaurant (>100) 59,213 0 0 0 0 0 0 0 0 0 0 0 59,213 $3,229,210 $0 $0 $0 $0 50 $0 $0 $0 $0 $0 $0 $3,229,210
FY 2024-25 Budget $3,340,238
Difference ($111,028)
Percent -3.3%
FY 202S-26 Budget $3,456,832
Oifference ($227,622)
Percent -6.6%
8 of 9 06/01/2026
Present Proposed Rates
Rates FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 Residential $1,097.50 $1,201.75 $1,315.90 $1,440.90 $1,527.35 $1,619.00 Commercial
Public Shower $364.30 $398.90 $436.80 $478.30 $507.00 $537.40 Hotel 603.60 660.95 723.70 792.45 840.00 890.40
Laundries 1,481.60 1,622.35 1,776.45 1,945.20 2,061.90 2,185.60 Shops/Offices 1,097.50 1,201.75 1,315.90 1,440.90 1,527.35 1,619.00 Other Combined Shops/Offices * 702.35 769.05 842.10 922.10 977.45 1,036.10 Take-out Restaurant 1,666.00 1,824.25 1,997.55 2,187.30 2,318.50 2,457.65 Churches 2,218.75 2,429.50 2,660.30 2,913.00 3,087.75 3,273.05 Bar/ Restaurant (<100) 3,300.00 3,613.45 3,956.70 4,332.55 4,592.45 4,868.05 Bar! Restaurant (>100) 4,934.40 5,403.10 5,916.30 6,478.30 6,867.00 7,279.05 *For multiple shops and/or office on a single parcel*
9 of 9 06/01/2026
City of Ava Ion
Saltwater Rate Study
Revenue Requirement Summary
Exhibit 1
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-3 1 Revenue
Rate Revenues $845,138 $845,138 $845,138 $845,138 $845,138 $845,138 Non-Operating Revenues 126,000 103,342 105,850 110,628 119,085 130,587 Total Revenues $971,138 $948,480 $950,988 $955,765 $964,223 $975,724 Expenses
Total Operations & Maintenance $816,804 $855,177 $895,366 $937,456 $981,539 $1,027,708 Taxes/Transfers 0 0 0 0 0 0
Net Debt Service 0 0 0 0 0 0
Rate Funded Capital 150,000 175,000 220,000 280,000 330,000 350,000 Reserve Funding 4,334 (1,409) 3,825 2,780 22,568 83,327 Total Revenue Requirement $971,138 $1,028,768 $1,119,191 $1,220,236 $1,334,107 $1,461,035 Balance/( Deficiency) of Funds $0 ($80,288) ($168,204) ($264,471) ($369,884) ($485,311) Bal/(Def.) as a % of Rate Rev. 0.0% 9.5% 19.9% 31.3% 43.8% 57.4% Proposed Rate Adjustment 0.0% 9.5% 9.5% 9.5% 9.5% 9.5%
Add I Revenue from Adj. $0 $80,288 $168,204 $264,471 $369,884 $485,311 Total Bal/(Def.) of Funds $0 ($0) $0 $0 $0 $0
Additional Rate Increase Needed 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% DSC
Before
Ratio
Rate Adjustment N/A N/A N/A N/A N/A N/A
After Rate Adjustment N/A N/A N/A N/A N/A N/A
Monthly Res Bill $25.05 $27.43 $30.04 $32.89 $36.01 $39.43 Total Ending Balance $1,103,033 $818,811 $554,586 $421,490 $442,097 $522,389 lof9 06/01/2026
City of Avalon
Saltwater Rate Study
Exhibit 2
Escalation Factors
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 Revenues
Customer Growth Calculated 0.0% 0.0% 0.0% 0.0% 0.0%
Consumption Growth 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Miscellaneous Revenues 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Expenses
Labor Budget 5.0% 5.0% 5.0% 5.0% 5.0%
Benefits -Medical Budget 5.0% 5.0% 5.0% 5.0% 5.0%
Benefits -Other Budget 3.5% 3.5% 3.5% 3.5% 3.5%
Materials&Supplies Budget 3.5% 3.5% 3.5% 3.5% 3.5%
Equipment Budget 4.0% 4.0% 4.0% 4.0% 4.0%
Miscellaneous Budget 3.0% 3.0% 3.0% 3.0% 3.0%
Utilities Budget 4.0% 4.0% 4.0% 4.0% 4.0%
Insurance Budget 4.0% 4.0% 4.0% 4.0% 4.0%
PERC Budget 4.7% 4.7% 4.7% 4.7% 4.7%
Rate Adjustment 0.0% 9.5% 9.5% 9.5% 9.5% 9.5%
Flat Budget 0.0% 0.0% 0.0% 0.0% 0.0%
Interest 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%
New Debt Service
Low Interest Loans
TerminYears 20 20 20 20 20 20
Rate 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
Revenue Bond
TerminYears 20 20 20 20 20 20
Rate 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
2 of 9 06/01/2026
City of Ava Ion
Saltwater Rate Study
Exhibit 3
Revenue Requirement
Budget
FY 2025-26 FY 2026-27
Projected
FY 2027-28 FY 2028-29
Non-Operating Revenues
Harbor
Interest
Enterprise Fund
Miscellaneous Revenue
Total Non-Operating Revenues
$18,000 $19,218 $13,734 $9,761 $8,636 $9,645
108,000 84,124 92,116 100,867 110,449 120,942
0 0 0 0 0 0
$126,000 $103,342 $105,850 $110,628 $119,085 $130,587
Calc’d on Oper. Balance
As Rate Adjustment
As Miscellaneous Revenues
Total Revenues $971,138 $948,480 $950,988 $955,765 $964,223 $975,724 CALPers Unfunded Liability PMT
Health / Life Insurance
Workers Comp
Unemployment Ins
Other Personnel Expenses
Total Salaries & Benefits
$50,631 $53,163 $55,821
7,441 7,701 7,971
214 221 229
1,170 1,229 1,290
3,557 3,735 3,922
134 139 145
0 0 0
$54,844 $57,481 $60,247 $63,147 $66,188 $69,378
As Labor
As Benefits -Other
As Benefits -Other
As Benefits -Medical
As Benefits - Medical
As Insurance
As Benefits - Other
Maintenance & Operations
$1,159 As Miscellaneous
0 As Materials & Supplies
As Materials & Supplies
Rate
Revenues
Total
Revenues
Rate Revenues

FY 2029-30 FY 2030-31
$845,138 $845,138 $845,138 $845,138 $845,138 $845,138 As Customer Growth Notes
Salt Water Administration
Salaries & Benefits
Salaries Regular
FICA Retirement
$43,737
6,711
193
3,073
1,011
119
0 $45,924
6,946
200
3,227
1,062
124
0 $48,220
7,189
207
3,388
1,115
129
0 Special Dept. Expense $1,000 $1,030 $1,061 $1,093 $1,126 Emergency Maintenance 0 0 0 0 0
Communications 500 518 536 554 574 594
Total Maintenance & Operations $1,500 $1,548 $1,597 $1,647 $1,699 $1,753 3 of 9 06/01/2026
City of Avalon
Saltwater Rate Study Page 2 of 4
Exhibit 3
Revenue Requirement
Budget Projected
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-3 1 Notes Contract Services
Professional Services $6,000 $6,300 $6,615 $6,946 $7,293 $7,658 As Labor City Attorney Retainer 0 0 0 0 0 0 As Labor
PERC Strategy Consultants 452,787 474,068 496,349 519,678 544,102 569,675 As PERC PERC Contract -CT 0 0 0 0 0 0 As Labor
PERC -Maintanance 0 0 0 0 0 0 As Materials & Supplies
Total Contract Services $458,787 $480,368 $502,964 $526,623 $551,395 $577,333 Internal Services
General Insurance $21,558 $22,421 $23,317 $24,250 $25,220 $26,229 As Insurance Admin Overhead 87,788 92,177 96,786 101,626 106,707 112,042 As Labor Total Internal Services $109,346 $114,598 $120,104 $125,876 $131,927 $138,271 Total Salt Water Administration $624,477 $653,995 $684,911 $717,293 $751,210 $786,735 Salt Water Admin Public Works
Salaries & Benefits
Salaries Regular $104,883 $110,127 $115,634 $121,415 $127,486 $133,860 As Labor Overtime Regular 2,956 3,104 3,259 3,422 3,593 3,773 As Labor FICA Retirement 18,866 19,526 20,210 20,917 21,649 22,407 As Benefits -Other CALPers Unfunded Liability PMT 23,030 23,836 24,670 25,534 26,427 27,352 As Benefits -Other Health / Life Insurance 27,380 28,749 30,186 31,696 33,281 34,945 As Benefits -Medical Workers Camp 7,439 7,811 8,201 8,612 9,042 9,494 As Benefits -Medical Unemployment Ins 288 302 318 333 350 368 As Benefits -Medical Clothing Allowance 935 968 1,002 1,037 1,073 1,110 As Benefits -Other Total Salaries & Benefits $185,777 $194,423 $203,480 $212,965 $222,901 $233,309 Maintenance & Operations
Special Dept. Expense $1,550 $1,597 $1,644 $1,694 $1,745 $1,797 As Miscellaneous Communications 2,500 2,575 2,652 2,732 2,814 2,898 As Miscellaneous Total Maintenance & Operations $4,050 $4,172 $4,297 $4,426 $4,558 $4,695 Internal Services
Admin Overhead Allocation $0 $0 $0 $0 $0 $0 As Labor
Total Internal Services $0 $0 $0 $0 $0 $0
Total Salt Water Admin Public Works $189,827 $198,595 $207,776 $217,391 $227,460 $238,004 4 of 9 06/01/2026
City of Avalon
Saltwater Rate Study
Exhibit 3
Revenue Requirement
Budget Projected
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 Notes Salt Water Maint & Development
Solories & Benefits
Maint. & Repair of Bldg Grnds $2,500 $2,588 $2,878 $2,772 $2,869 $2,969 As Materials & Supplies TotolSolories & Benefits $2,500 $2,588 $2,678 $2,772 $2,869 $2,969 Total Salt Water Maint & Development $2,500 $2,588 $2,678 $2,772 $2,869 $2,969 Total Operations & Maintenance $816,804 $855,177 $895,366 $937,456 $981,539 $1,027,708 Taxes / Transfers
$0 $0 $0 $0 $0 $0 As Miscellaneous
Totol Toxes / Tronsfers $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 Debt Schedule
0 0 0 0 0 0 Calc@3%for2oYrs
0 0 0 0 0 0 Calc@S%for2oYrs
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$150,000 $175,000 $220,000 $280,000 $330,000 $350,000 $51,571 FY 2024-25 Depr. $4,334 ($1,409) $3,825 $2,780 $22,568 $83,327
0 0 0 0 0 0
$4,334 ($1,409) $3,825 $2,780 $22,568 $83,327
$971,138 $1,028,768 $1,119,191 $1,220,236 $1,334,107 $1,461,035 $0 ($80,288) ($168,204) ($284,471) ($369,884) ($485,311)

0.0% 9.5% 19.9% 31.3% 43.8% 57.4%
-— 0.0% 9.5% 9.5% 9.5% 9.5% 9.5%
12 12 12 12 12 12
$0 $80,288 $168,204 $264,471 $369,884 $485,311
$0 ($0) $0 $0 $0 $0

0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Poqe 3 of 4
Debt Service
Interfund Loan
New SRF Loans
New Revenue Bonds
Totol Debt Service
Less Connection Fees
Net Debt Service
Rate Funded Capital
Reserve Funding
To! (From) Saltwater Fund -112
To! (From) Saltwater Reserve Fund -113
Totol Reserve Funding
Total Revenue Requirement
Balj(Def.) of Funds
Rate Adj. as a % of Rate Rev.

Proposed Rate Adjustment
Months of Adjustment
Add’l Revenue from Ad).

Total Bal!(Def.) of Funds
Additional Rate Increane Needed
5 of 9 06/01/2026
City of Ava Ion
Saltwater Rate Study
Exhibit 3
Revenue Requirement
Before Rate Adjustment
After Rate Adjustment
After Proposed Rate Adjustment
Annual $ Change
Cumulative Change
Total Beginning Balance
Saltwater Fund - 112
Beginning Balance
Plus: Additions
Interfund Loan Proceeds
Less: Uses of Funds
Ending Balance
Target: 180 days of O&M
$948,699 $1,103,033 $818,811 $554,586 $421,490 $442,097 $661,134 $665,467 $664,059 $549,833 $416,737 $439,305
4,334 0 3,825 2,780 22,568 83,327
0 0 0 0 0 0
0 (1,409) (118,051) (135,876) 0 (3,035)
$665,467 $664,059 $549,833 $416,737 $439,305 $519,597
$402,808 $421,731 $441,550 $462,307 $484,046 $506,815
Saltwater Reserve Fund - 113
Beginning Balance $287,565 $437,565 $154,753 $4,753 $4,753 $2,792 Plus: Additions 150,000 0 0 0 0 0
Less: Uses of Funds 0 (282,813) (150,000) 0 (1,961) 0
Ending Balance $437,565 $154,753 $4,753 $4,753 $2,792 $2,792 Total Ending Balance $1,103,033 $818,811 $554,586 $421,490 $442,097 $522,389 DSC Ratio
Budget I
Page4of4
Monthly Res Bill
Projected
FY 2025-26 I FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31

N/A N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A N/A
$25.05
$25.05
Reserve Funds
Notes
$27.43 $30.04 $32.89 $36.01 $39.43

2.38 2.61 2.85 3.12 3.42

2.38 4.99 7.84 10.96 14.38
6 of 9 06/01/2026
City of Avalon
Saltwater Rate Study
Capital
Exhibit4
Improvement Plan
Inflation 3.5% I
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 Collection and Distribution System (25%) $0 $107,813 $114,934 $97,937 $78,175 $83,138 Treatment Plant (40%) 0 350,000 373,118 317,940 253,786 269,897 Total Capital Projects $0 $457,813 $488,051 $415,876 $331,961 $353,035 Future Unidentified Projects $0 $0 $0 $0 $0 $0
To Capital Reserves $150,000 $0 $0 $0 $0 $0
Total Capital Improvement Projects $150,000 $457,813 $488,051 $415,876 $331,961 $353,035 Less: Outside Funding Sources
Saltwater Fund -112 $0 $0 $118,051 $135,876 $0 $3,035
Saltwater Reserve Fund -113 0 282,813 150,000 0 1,961 0 NewSRF Loans 0 0 0 0 0 0
NewRevenueBonds 0 0 0 0 0 0
Total Outside Funding Sources $0 $282,813 $268,051 $135,876 $1,961 $3,035 Rate Funded Capital $150,000 $175,000 $220,000 $280,000 $330,000 $350,000 7 of 9 06/01/2026
City of Avalon
Saltwater Rate Study Page 1 of I
Exhibit 5
Revenues at Present Rates
Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Total Fixed Charge Unit $fAcct./Yr.

Residential (DU) $300.60 1,879 1,879
Commercial (per toilet) 300.60 493 493
Hotel (per toilet) 165.35 799 799
3,171 0 0 0 0 0 0 0 0 0 0 0 3,171
Total Fixed Charge Revenue $845,138 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $845,138 Total Revenue $845,138 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $845,138 Customer
Summary
Residential 1,879 0 0 0 0 0 0 0 0 0 0 0 157
Commercial 493 0 0 0 0 0 0 0 0 0 0 0 41
Hotel 799 0 0 0 0 0 0 0 0 0 0 0 67
Total Revenue
Residential $564,827 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $564,827 Commercial 148,196 0 0 0 0 0 0 0 0 0 0 0 148,96
Hotel 132,115 0 0 0 0 0 0 0 0 0 0 0 132,115
$845,138 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $845,138
FY 2024-25 Budget $902,325
Difference ($57,187)
Percent -6.3%
FY 2025-26 Budget $924,883
Difference ‘$79,745)
Percent -8.6%
S of 9 06/01/2026
Present Proposed Rates
Rates FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 Residential $300.60 $329.15 $360.40 $394.65 $432.15 $473.20 Commercial 300.60 329.15 360.40 394.65 432.15 473.20
Hotel 165.35 181.05 198.20 217.05 237.70 260.25
9 of 9 06/01/2026
Fina Report
1 Comprehensive Saltwater
Final Rate Study
June 2026 FY
IL
FY
June 1, 2026
Mr. Matt BakerFinance Director
City of Ava Ion
410 Avalon Canyon Road
Avalon, California 90704Subject: City of Avalon Final Saltwater Rate Study Report Dear Mr. Baker:HDR Engineering, Inc. (HDR) is pleased to present the final report for the saltwater rate study conducted for the City of Avalon (City). The primary objective of conducting a rate study is to establish cost-based and proportional rates, for a five-year period, which is intended to provideadequate and sustainable funding for the saltwater utility’s operational and capital needs. This report outlines the approach, methodology, findings, and conclusions of the rate study processundertaken for the utility.

This report was developed utilizing the City’s accounting, operating, and historical customer billing records. HDR has relied upon this information to develop our analyses which formed our findings, conclusions, and recommendations. At the same time, the saltwater rate study was developed utilizing generally accepted rate setting principles and the saltwater utility specificsystem and customer characteristics. The conclusions and recommendations contained within this report are intended to provide the City with cost-based and proportional saltwater rates for its customers.

We appreciate the assistance provided by the City staff, management, and the City Council in the development of the Study.

Sincerely,
HDR Engineering, Inc.

Josiah Close
Utility Rates Project Manager
Table of Contents
Executive Summary 1
Overview of the Rate Setting Process 5

1.1 Report Organization 5

1.2 Overview of the Rate Study Process 51.3 Generally Accepted Rate Setting Principles 61.4 Determining the Revenue Requirement 61.5 Designing Rates 7

1.6 Summary 7
2 Saltwater Revenue Requirement 8

2.1 Determining the Saltwater Utility Revenue Requirement 8

2.1.1 Determining the Time Period and Approach 82.1.2 Projection of Saltwater Revenues 82.1.3 Projection of Saltwater Operation and Maintenance Expenses 92.1.4 Projection of Saltwater Capital Improvement Projects and Funding 92.1.5 Projection of Debt Service 112.1.6 Reserve Funding 11

2.1.7 Summary of the Saltwater Revenue Requirement 112.1.8 Review of the Saltwater Reserve Levels 122.1.9 Consultant’s Conclusions 12 3 Saltwater Cost of Service 13

3.1 Objectives of a Cost of Service Analysis 133.2 Development of the Saltwater Cost of Service 133.3 Consultant’s Conclusions 14 4 Saltwater Rate Design 15

4.1 Rate Design Criteria and Considerations 154.2 Overview of the Proposed Rate Structures 164.3 Present and Proposed Saltwater Rates 164.4 Summary of the Saltwater Rate Study 174.5 Proposition 218 17 Technical Appendix 18
F Table of Contents City of Avalon — Saltwater Rate Study Executive Summary
HDR was retained by the City of Avalon to conduct a comprehensive saltwater rate study (Study).

The objective of the Study was to review the City’s saltwater utility operating and capital costs and develop cost-based and proportional proposed saltwater rates for the City’s customers. The Study determined the adequacy of the existing saltwater rates and provides the framework forcost-based and proportional proposed saltwater rates.Overview of the Rate Study Process A saltwater rate study uses three interrelated analyses to address the sufficiency and proportionality of a utility’s rates. These three analyses are a revenue requirement analysis, a cost of service analysis, and a rate design analysis. These three analyses are illustrated below in Figure ES-i.

Figure ES — 1
Overview of the Comprehensive Rate Analyses
Compares the revenues to the expenses of
Revenue Requirement Analysis the utility to determine the overall level of __________ rate adjustment required Cost of Service Analysis
Rate Design Analysis
Distributes the revenue requirement to the
various customer classes ofservice in a
proportional manner
Considers both the revenue
requirement and cost ofservice
results to develop the proposed rates
The results from each of the above tasks were used as the basis for establishing cost-based and proportional rates for the City’s saltwater utility customers.Key Rate Study Results The technical analysis for the City’s saltwater rate study was developed based on the operating and capital infrastructure costs necessary to provide saltwater service to the City’s customers.

The City’s comprehensive saltwater rate study resulted in the following key findings, conclusions, and recommendations:
• A revenue requirement analysis was developed for the projected time period of FY 2025- 26— FY 2035-36
• The starting point for the revenue requirement analyses was the City’s adopted FY 2025- 26 O&M budget and capital improvement plans
F Executive Summary City of Ava Ion — Saltwater Rate Study 1 • O&M expenses are projected to increase at historical inflationary levels, with no assumed changes to levels of service or anticipated extraordinary expenses • The revenues need to be increased to prudently fund the operating and capital needs over the next 5-year period
• A five-year rate transition plan (FY 2026-27 — FY 2030-31) was developed to adequately fund the operating and capital needs based on the Study assumptions v” 9.5%, annually, from FY 2026-27 through FY 2030-31
• A cost of service analysis was developed as part of the Study • The Study developed proposed rates for the FY 2026-27 through FY 2030-31 based on the overall revenue needs and proportional allocation of costs • By FY 2030-31, the City should review the financial/rate status and the potential need for additional rate adjustments and/or a rate structure review Summary of the Saltwater Revenue Requirement Analysis
The starting point of the saltwater revenue requirement analysis was the adopted FY 2025-26 budget. HDR developed a projection of revenues and expenses for future years based on assumed escalation (inflationary) factors. The focus for purposes of rate setting was the next fiveyear period (FY 2026-27 — FY 2030-3 1).

The proper and adequate funding of capital projects is important to maintain the City’s existing saltwater infrastructure and service levels. At the same time, it is important to create a funding plan which maximizes the amount of funds available for capital investment yet minimizes saltwater rates over time if feasible. As part of the City’s proposed capital funding plan, the City is projected to annually fund $120,000 in FY 2025-26 and increases to $350,000 by FY 2030-31; the average is approximately $250,000 per year. In addition to rate funding, it is assumed thatthe City will utilize the annual rate revenues for capital and a limited amount of available reserves to fund the capital improvement plan. Provided below in Table ES - 1 is a summary of the capital improvement funding plan over the rate setting period (FY 2025-26 through FY 2030—31).

Table ES—i
Summary of the Capital Improvement Plan ($000)

FY FY FY FY FY FY
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31
Total capital Projects $0 $458 $488 $416 $332 $353
Future Unidentified Projects o o a a o
To Capital Reserves iso a o o a o
Total $150 $458 $488 $416 $332 $353
Less: Other Funding $0 $283 $268 $136 $2 $3
Total Rate Funded Capital $150 $117 $220 $280 $330 $350 The revenue requirement analysis sums the saltwater utility’s operating and capital expenses and compares it to the total saltwater revenues to determine if a rate adjustment is necessary and, ifso, at what level. As noted, a rate transition plan was developed to meet the financial needs of j ) Executive Summary 2 City of Avalon — Saltwater Rate Study the saltwater utility. The summary of the saltwater revenue requirement shown in Table ES — 2 indicates the need for rate adjustments to properly fund the identified expenses of the saltwaterutility.

Table ES-2
Summary of the Saltwater Revenue Requirement ($000s)

FY FY FY FY FY FY
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31
RevenuesRate Revenues $845 $845 $845 $845 $845 $845Non-Operating Revenues 126 103 106 111 119 131Tota! Revenues $971 $948 $951 $956 $964 $976 Expenses
O&M Expenses $817 $855 $895 $937 $982 $1,028
Rate Funded capital iso 175 220 280 330 350Net Debt Service 0 0 0 0 0 0 To/(From) Reserve Funding 4 (1) 4 3 23 83
Total Expenses $971 $1,029 $1,119 $1,220 $1,334 $1,461Bal./(Def.) of Funds $0 ($80) ($168) ($264) ($370) ($485)Deficiency as % of Rate Revenue 0.0% 9.5% 19.9% 31.3% 43.8% 57.4% Proposed Rate Adjustments 0.0% 9.5% 9.5% 9.5% 9.5% 9.5% Addi Revenue with Rate Adj. $0 $80 $168 $264 $370 $485
The results of the saltwater revenue requirement show the need for annual 9.5% rate revenue adjustments in FY 2026-27 through FY 2030-31. The total deficiency of revenues prior to the proposed rate revenue adjustments ranges from $80,000 in FY 2026-27 to $485,000 by FY 2030-

31. The level of the overall deficit is driven, in part, by the increased funding from rates for capital improvement projects as well as general inflation of annual O&M expenses. The proposed rate adjustments are designed to provide sufficient revenue to fund the annual O&M and capital needs of the saltwater utility, as well as maintaining financial metrics such as reserve balances.

Summary of the Saltwater Cost of Service Analysis
The saltwater cost of service analysis reviewed the current saltwater rates related to the proportionality of the rates. The City does not meter or monitor saltwater use for the customers which makes the assessment less straightforward and more challenging. As a result, the Study reviewed the assumed flow generated by each customer class and their related contribution to flows from saltwater use to flush toilets for the customer types. HDR researched available industry information to review the flow assumptions for toilets for different customer classes.

These estimated flows from each of these sources were used to determine the proportional share of costs related to each customer class. After the review, it is proposed that the current flow ratioassumptions be maintained and only the level of the rates be adjusted to reflect the revenue needs of the utility and the relationship between the customers.

F Executive Summary 3 City of Avalon -Saltwater Rate Study Summary of the Saltwater Rate Design Analysis
As mentioned above, the proposed rates maintain the current saltwater fixed rate structure. That is, only the level of the rate revenue has been proposed to be adjusted based on therecommendations of the Study. Provided below in Table ES — 3 are the present and proposed annual saltwater rates.

Table ES—3
Present and Proposed Annual Saltwater Rates
1 Present FY FY F’! FY FY Bil ing Unit Rates 2026-27 2027-28 2028-29 2029-30 2030-31 Residential Dwelling Unit $300.60 $329.15 $360.40 $394.65 $432.15 $473.20 Commercial Per Toilet 300.60 329.15 360.40 394.65 432.15 473.20 Hotel Per Toilet 165.35 181.05 198.20 217.05 237.70 260.25 Section 4 of this report provides a detailed discussion of the current and proposed saltwater rates along with a component by component summary of the proposed saltwater rates for FY 2026-27 through FY 2030-31.

Summary of the Saltwater Rate Study
The adequacy of the City’s saltwater rates were reviewed by HDR. Based upon the analyses developed herein, HDR has proposed a comprehensive set of rate recommendations for thesaltwater utility. The following sections of the report provide a more detailed discussion of the technical analyses undertaken - along with the findings, conclusions, and recommendations ofthe study.

Proposition 218
Given the requirements of what is commonly referred to as Proposition 218, a process must be utilized in order to adopt and implement a change in the City’s saltwater rates. The firstrequirement is that the proposed rates must be cost-based or justified and that is the reason the City has developed the Study. Once the cost basis for the proposed saltwater rates have been calculated, a public notice process must be undertaken in order to move forward with the adoption of the proposed rates. This begins with the presentation of the proposed rates to theCity Council. If the proposed rates are acceptable and prudent, the City Council can direct staff to prepare and mail the Proposition 218 notices to the City’s customers which outlines the changes in saltwater rates and the time, date, and location of the public hearing.

The City held the public hearing for the saltwater rate study on May 19th, 2026 at 5:00pm. At the public hearing, the protest votes were counted and absent a majority of 50% + 1, the City Council was able to adopt the Study, unanimously. At a later date, the proposed saltwater rates, not to exceed the rates as noticed to customers, will be brought forward to the City Council for adoption and will be implemented for the next fiscai year starting July 1, 2026.

F Executive Summary 4 City of Avalon -.Saltwater Rate Study 1 Overview of the Rate Setting Process
The primary goal of a rate study is to determine whether existing utility rates are adequate (sufficient) to meet the utility’s operating and capital expenses. Rates set too low may result ininsufficient funds to maintain system integrity. The Study provides a proportional cost of servicebasis for making appropriate rate adjustments.

1.1 Report Organization
This report is organized in a sequential manner that first provides an overview of utility rate setting principles in this section, followed by sections that detail the specific technical andanalytical steps used to develop the City’s proposed saltwater rates. The following sectionscomprise the City’s saltwater rate study report:
• Section 3 reviews the development of the revenue requirement analysis• Section 4 reviews the development of the cost of service analysis• Section 5 reviews the development of the rate design analysis A technical appendix is attached at the end of the report which provides a copy of the technical analyses undertaken in the preparation of this report.

1.2 Overview of the Rate Study Process
A rate study consists of three interrelated analyses, all which were performed for the saltwater utility rate study. Figure 1 - 1 provides an overview of these analyses.

Figure 1—1
Overview of the Comprehensive Rate Analyses
Revenue ReuirernentAnaivsisj
[ 4,
Cost of Service Analysis
Rate Design Analysis
Compares the revenues to the expenses of
the utility to determine the overall level of
rate adjustment required
Distributes the revenue requirement to the
customer classes ofservice in a
proportional manner
Considers both the revenue
requirement and cost ofservice
results to develop the proposed rates
F Overview of the Rate Setting Process City of Avalon — Saltwater Rate Study 5 A revenue requirement analysis is concerned with the overall funding sources and expenses, operating and capital, of the utility for the provision of saltwater services. From this analysis, a determination can be made as to the overall level of adjustment to rate revenues. Next, a cost ofservice analysis is performed to proportionally distribute the revenue requirements to thedifferent types of customers served (e.g., residential, commercial). Finally, once an overall levelof rate adjustment is determined and a proportional distribution of those costs is completed, the last step of the rate study process is the design of proposed rates to collect the appropriate level of revenues. For the City’s saltwater rate study, all three analyses were conducted. The results from each task of the Study, for the saltwater utility, were used as the basis for establishing costbased and proportional rates for the City’s customers.

In developing the Study, HDR utilized generally accepted rate setting techniques and industrybest practices and the saltwater utility specific operating and customer characteristics. Thisreport discusses the methodology, findings and conclusions of the Study. The Study has focused on the level of rate revenue needed to fully fund the utility on a standalone basis, and the rates needed to best generate that level of funding, while meeting the City’s goals and objectives.

1.3 Generally Accepted Rate Setting Principles
As a practical matter, utilities should consider setting their rates around generally accepted orglobal principles and guidelines. Utility rates should be:
• Cost-based and proportional• Easy to understand and administer• Designed to conform with generally accepted rate setting techniques• Stable in their ability to provide adequate revenues for meeting the utility’s financial, operating, and regulatory requirements
• Established at a level that is stable from year-to-year from a customer’s perspective• Established in compliance with State law

1.4 Determining the Revenue Requirement
Most public utilities use the cash basis’ approach for establishing their revenue requirement and setting rates. This approach conforms to most public utility budgetary requirements and thecalculation is easy to understand and determine. A public utility:
• Totals its cash expenditures for a period of time to determine required revenues based on the cost of service the utility provides
• Adds operation and maintenance (O&M) expenses. Operation and maintenance expenses include the materials, electricity, labor, supplies, etc. needed to keep the utility functioning.
1 This is the basis of accounting under which revenues are recorded when cash is received and expenditures arerecoded when cash is disbursed.

F Overview of the Rate Setting Process 6 City of Ava Ion — Saltwater Rate Study • Calculates capital costs by adding debt service payments (principal and interest) to capital improvements financed with rate revenues. In lieu of including capital improvements financed with rate revenues, a utility sometimes includes annual depreciation expense tostabilize annual revenue requirement.

Under the cash basis approach, the sum of the capital and operating expenses equals the utility’srevenue requirement during any period of time (see Table 1 -2).

TabIel-2
Cash Basis
+ O&M Expense+ Taxes or Transfer Payments+ Capital Improvements Financed with Rate Revenues ( Depreciation Exp.)+ Debt service (Principal + Interest)= Total Revenue Requirement Note that the two portions of the capital expense component (debt service and capital improvements financed from rates) are necessary under the cash basis approach because utilities generally cannot finance all their capital facilities with long-term debt. The analyses developedwithin this report utilize the cash basis methodology. This is consistent with the City’s past practices of establishing proposed rates and is the most widely accepted method of accumulating costs for municipal utilities.

1.5 Designing Rates
For the Study, rates that meet the utility’s objectives are designed based on the revenuerequirement and cost of service analyses. This provides rates that are cost-based (i.e., designed to collect a cost-based level of revenues) and proportional (i.e., reflect the costs placed on the system by a customer class and customers within a class).

1.6 Summary
This report will review and discuss the Study prepared for the City. This report has been prepa red utilizing generally accepted rate setting methodologies and techniques to meet the requirements of Proposition 218.

F Overview of the Rate Setting Process 7 City of Ava Ion — Saltwater Rate Study 2 Saltwater Revenue Requirement
This section of the report provides for the development of the revenue requirement analysis for the CitVs saltwater utility. The saltwater utility is utilized to flush the toilets within the City’s service area to displace the demand for potable water. One of the main objectives of the saltwater rate study is to develop cost-based and proportional rates. Provided below is a detailed discussion of the development of the revenue requirement for the saltwater utility.

2.1 Determining the Saltwater Utility Revenue RequirementIn developing the saltwater revenue requirement, it was assumed that the saltwater utility must financially recover its costs of service to be financially stable As a result, the saltwater revenue requirement, as developed herein, assumes the full and proper funding needed to operate andmaintain the system on a financially prudent basis.

2.1.1 Determining the Time Period and Approach
The first step in calculating the revenue requirement for the saltwater utility was to establish a time frame for the revenue requirement analysis. For the Study, the revenue requirement was developed for the time period of FY 2025-26 — FY 2030-31.

The second step in determining the revenue requirement for the City was to decide on the basis of accumulating costs. As discussed in the previous section, the saltwater utility’s revenue requirement was established using a cash basis approach, the same methodology that was usedin prior rate studies.

The primary financial inputs in this process were the City’s historic saltwater customer billing records, adopted O&M budget, and capital improvement plan. Presented below is a discussion of the analytical steps and key assumptions contained in the development of the saltwater revenue requirement analysis.

2.1.2 Projection of Saltwater Revenues
The first step in developing the saltwater revenue requirement was to develop a projection of rate revenues which was based on the customer billing units and current rates. Currently, there are three major saltwater customer classes of service: residential, commercial, and hotel. The majority of the City’s saltwater rate revenues are derived from residential customers. In total, atpresent saltwater rates, the City is projected to receive approximately $845,000 in rate revenue in FY 2025-26. Over the planning horizon of this study no customer growth has been assumed, which reflects the historical growth on the City’s system, the total saltwater rate revenues are expected to remain flat.

In addition to rate revenues, the saltwater utility also receives miscellaneous revenues. The utilityis projected to receive approximately $126,000 in miscellaneous revenues in FY 2025-26.Miscellaneous revenues are projected to decrease slightly to $119,000 in FY 2030-31.

F Saltwater Revenue Requirement 8 City of Ava Ion — Saltwater Rate Study In total, including both saltwater rate and miscellaneous revenues, the utility’s total projected revenues are expected to be approximately $971,000 in FY 2025-26 and, with the slight decrease in miscellaneous revenues, reducing slightly to $964,000 through FY 2030-31. A summary of theprojection of miscellaneous and rate revenues is included in the Technical Appendix, Exhibit 3.

2.1.3 Projection of Saltwater Operation and Maintenance ExpensesOperation and maintenance expenses are incurred by the utility to operate and maintain theexisting saltwater utility services. The costs incurred in this area are expensed during the current year are not capitalized or depreciated. To begin the process of projecting O&M expenses over the planning horizon, escalation factors were developed. Escalation factors were developed forthe basic types of expenses the City incurs: labor, benefits, materials and supplies, utilities, insurance, and miscellaneous expenses. The escalation factors generally range from 3.5% to 5.0%per year based on historic inflationary factors. These escalation factors are shown in Exhibit 2 of the Technical Appendix.

Starting with the adopted FY 2025-26 budget, O&M expenses were projected over the five-year period (FY 2026-27 — FY 2030-31) based on the escalation factors described above. The total operation and maintenance expenses for the utility in FY 2025-26 are approximately $816,000and increase to $1.0 million by FY 2030-31. The detail of these expenses is shown in Exhibit 3 of the Technical Appendix.

2.1.4 Projection of Saltwater Capital Improvement Projects and Funding The City’s saltwater utility has several capital improvement projects planned over the study’stime horizon. Over the planning period of FY 2025-26 — FY 2030-31, there is approximately $2.2 million in projected capital projects averaging $366,000 annually. A summary of the capital funding plan developed for the saltwater utility is shown in Table 2- 1, including assumed funding sources for the capital plan. This can be found in further detail in Exhibit 4 of the Technical Appendix.

Table 2—1
Summary of the Capital Improvement Plan ($000)

FY FY FY FY FY FY
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31
Total capital Projects $0 $458 $488 $416 $332 $353
Future Unidentified Projects 0 0 0 0 0 0
To Capital Reserves 150 0 0 0 0 0
Total $150 $458 $488 $416 $332 $353
Less: Other FundingSaltwater Fund - 112 $0 $0 $118 $136 $0 $3Saltwater Reserve Fund -113 0 283 150 0 2 0 New Revenue Bonds 0 0 0 0 0 0Total $0 $283 $268 $136 $2 $3 Total Rate Funded Capital $150 $175 $220 $280 $330 $350 F Saltwater Revenue Requirement 9 City of Ava Ion — Saltwater Rate Study There are numerous funding sources that can be used to fund the capital projects. Among the methods that may be used to finance these saltwater capital improvement projects are longterm debt, reserves, and rates. Historically the City has primarily utilized rates and reserves to fund annual capital improvements and the City is projected to continue to providing funding inthis way. Provided below is a summary of the typical funding sources the City has used, and will continue to use, to fund the capital improvements over the next five year period.

2.1.4.1 Rate Funding
A general financial guideline states that, at a minimum, a utility should fund an amount equal to or greater than annual depreciation through rates. Annual depreciation expense reflects thecurrent investment in saltwater plant being depreciated or “losing” its useful life. Therefore, this portion of plant investment needs to be replaced to maintain the existing level of infrastructure.

While the general financial guideline suggests funding an amount at least equal to the depreciation expense, consideration should also be given to funding within rates some amount greater than the annual depreciation expense to reflect the cost of replacement. Annual depreciation expense reflects the cost of infrastructure that was constructed, on average, 15 to20 years ago. Funding for the replacement cost is prudent and minimizes costs/rates over time.

As a point of reference, the City’s current annual depreciation expense for the saltwater system is approximately $52,000 as provided in the City’s financial records for FY 2024-25. The City hasmade commitments recently to cash fund capital projects. As a result, rate funded capital isincreased from $150,000 in FY 2025-26 to $350,000 in FY 2030-31 and averages $250,000 per year over the review period.2.1.4.2 Reserve FundingAvailable reserve funds are another method of funding capital improvements. Reserve funds aretypically funded by annual surpluses or strategic planning to proactively enhance reserve balances. This allows the City to reserve funds for projects in later years when more or largerprojects are undertaken. This approach helps to mitigate future rate adjustments and smoothrates overtime. During the review period, approximately $692,000 in available reserves are used to fund capital projects. Over the planning horizon, close attention should be given to the reserve balance as to not reduce fund balances below minimum targets described below.

2.1.4.3 Long-Term Debt
Another potential funding source for capital projects is the issuance of long-term debt. Whilethere are certain advantages and disadvantages with the issuance of long-term debt, it is important to weigh them when deciding whether to issue or not. Long-term debt is typically notissued to fund renewal and replacement projects similar to those being proposed during this timeperiod. Rather, long-term debt is often issued for major capital projects which have an immediateimpact on rates and long-term debt is a financing mechanism to smoothly finance/fund the major capital project. For this analysis, there is no assumed new debt issuances over the review periodof FY 2025-26 through FY 2030-3 1.

F)‘ Saftwater Revenue Requirement 10 City of Ava Ion — Saltwater Rate Study

2.1.5 Projection of Debt Service
The final component of the saltwater revenue requirement is debt service. At the present time, the City has no outstanding debt obligations. As mentioned, no long-term debt issuances were projected or anticipated within the saltwater capital improvement plan.2.1.6 Reserve Funding The Study has used reserve funding - or the transfer to/from reserve funds - to smooth and mitigate the rate adjustments in any particular year. Reserve funding can also be used to helpbuild or replenish reserves if they have been drawn down in prior years. In this analysis, changein working capital is primarily used to balance revenue requirements to the proposed rate adjustments.

2.1.7 Summary of the Saltwater Revenue Requirement
Given the above projections of revenues and expenses, a summary of the revenue requirement for the saltwater utility can be developed. In developing the final revenue requirement, consideration was given to the financial planning considerations of the City. In particular,emphasis was placed on attempting to minimize rates, yet still have adequate funds to support the operational and capital expenses throughout the projected time period. Presented in Table 2 - 2 is a summary of the saltwater revenue requirement. A detailed analysis of the saltwater revenue requirement can be found in Exhibit 3 of the Technical Appendix.

Table2-2
Summary of the Saltwater Revenue Requirement ($000s)

FY FY FY FY FY FY
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31
Revenues
Rate Revenues $845 $845 $845 $845 $845 $845Non-Operating Revenues 126 103 106 111 119 131Total Revenues $971 $948 $951 $956 $964 $976 ExpensesO&M Expenses $817 $855 $895 $937 $982 $1,028
Rate Funded Capital 150 175 220 280 330 350Net Debt Service 0 0 0 0 0 0Reserve Funding 4 (1) 4 3 23 83Total Expenses $971 $1,029 $1,119 $1,220 $1,334 $1,461BaI./(Def.) of Funds $0 ($80) ($168) ($264) ($370) ($485)BaI./(Def.) as % of Rate Revenue 0.0% 9.5% 19.9% 31.3% 43.8% 57.4% Proposed Rate Adjustments 0.0% 9.5% 9.5% 9.5% 9.5% 9.5% AddI Revenue with Rate Adj. $0 $80 $168 $264 $370 $485
F Saltwater Revenue Requirement City of Ava Ion — Saltwater Rate Study It is important to note the annual deficiencies shown in Table 2 - 2 are cumulative. That is, any rate adjustments in the initial years will reduce the overall deficiency in the remaining years. Theresults of the revenue requirement analysis indicate, absent the proposed rate adjustments, a deficiency of funds over the review period (FY 2025-26— FY 2030-31). The deficiency ranges fromapproximately $80,000 in FY 2025-26 to $485,000 in FY 2030-31. Over this time period, theoverall deficiency in rates is 57.4%. The level of this overall deficiency in rates is being driven byinvestments in capital infrastructure (i.e., annual renewal and replacement capital funding) as well as inflationary increases in O&M expenses. Based on the City’s saltwater revenue requirement analysis, annual rate adjustments have been proposed over the five-year period.

The proposed rate transition plan in Table 2 - 2 is projected to adequately fund the City’s saltwater O&M, along with the planned capital improvement projects identified as part of thisstudy. At the same time, these proposed rate adjustments will strengthen the overall financial health of the saltwater utility.

2.1.8 Review of the Saltwater Reserve LevelsReserves are an important part of a utility’s financial picture. There can be many differentpurposes for reserves. They are also an indicator of the long-term financial health of the utility.

The reserve fund has a minimum ending fund balance target of 180 days of O&M expenses, which is approximately $522,000 for FY 2025-26. Over this planning period, the City is projected to maintain reserve levels above this minimum target.

Saltwater Utility - Reserve Funds
$1,200,000$1,000,000
$800,000$600,000$400,000$200,000
$0

2.1.9 Consultant’s Conclusions
Based on the City’s revenue requirement analysis the proposed overall saltwater rate adjustment is 9.5%, annually, in FY 2026-27 through FY 2030-31. These proposed rate adjustments are needed to fully fund the projected operating costs of the utility, along with the capital improvement plan as outlined in this report.
j Saltwater Revenue Requirement 12 City of Ava Ion — Saltwater Rate Study FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 Saltwater Furrd -112 Saltwater Reserve Fuod 113 — — — Tar6et 180 lays of O&M 3 Saltwater Cost of Service
In the previous section, the revenue requirement analysis focused on the total revenues required to adequately fund the City’s saltwater utility. This section will provide an overview of the second step in a comprehensive saltwater rate study; the cost of service analysis developed for the City’s saltwater utility.

A saltwater cost of service analysis determines the proportional distribution of the total revenue requirement to the rate structure components. The previously developed revenue requirement(Section 2) for FY 2026-27 (test year) was utilized in the development of the cost of service analysis.3.1 Objectives of a Cost of Service Analysis
There are two primary objectives in conducting a cost of service analysis:
• Allocate and proportionally distribute the City’s saltwater revenue requirement, and • Derive the cost basis for subsequent rate designs by customer class of service The objectives of the cost of service analysis are different from determining a revenue requirement. As noted in the previous section, a revenue requirement analysis determines theutility’s overall financial needs, while the cost of service analysis determines the proportionalmanner to collect the calculated revenue requirement.

3.2 Development of the Saltwater Cost of Service
The saltwater cost of service analysis was reviewed with regards to cost basis and the proportionality. Saltwater services are not metered by the City. Given this, an approach was developed to review the estimated flows by customer type. The assumed flow generated by eachcustomer class and their related contribution to flows from saltwater use to flush toilets was reviewed. Based on industry sewer flow information, as saltwater flow data is not available as itis not widely used for these types of services, the flow assumptions for the different customer classes were developed. The relationship of hotel rooms to residential as developed in the sewer rate study was used in the Study as the basis for the relationship. Additionally, it is assumed that commercial establishments in the City have a similar flow contribution rate as residentialcustomers with discussion with staff. Table 3— 1 shows the number of customers adjusted by the flow-based relationship and the corresponding cost share responsibility. The total cost to distribute is based on the FY 2026-27 revenue requirement of $1,028,768 (Table 2 — 2) less nonoperating revenues of $103,342 and equals $925,426.

F Saltwater Cost of Service 13 City of Ava Ion — Saltwater Rate Study Table3—1
Saltwater Cost of Service Summary
Number of Flow Adj. # of % of Distributed Cost per
Customers Factor Customers Total Costs Unit rounded
Residential 1,879 1.00 1,879 66.8% $618,418 $326.15
Commercial 493 1.00 493 17.5% 162,277 326.15
Hotel 799 0.55 439 15.6% 144,651 181.05
Total $925,426

3.3 Consultant’s Conclusions
The City has an established rate for residential customers (per account), and commercial and hotels (per toilet). Given the current flow assumptions, which reflect industry standard sewer flow ratios, the current relationships were maintained. Given this, the City’s proposed saltwater rates can be developed.

F Saltwater Cost of Service 14 City of Avalon —Saltwater Rate Study 4 Saltwater Rate Design
The final step of the City’s comprehensive saltwater rate study is the design of proposed rates to collect the appropriate levels of revenues, based on the results of both the revenue requirementand the cost of service analyses. In developing the City’s proposed saltwater rates, considerationis given to the level of the rates as well as the structure of the rates. The level of rates reflects the amount of revenues that should be collected while the structure of the rates is how it is collected (i.e., component charges) from the customers.

The overall revenue level for the City’s has been established in the revenue requirement analysis (Section 2) while the proportional distribution of costs has been developed in the cost of service analysis (Section 3) which provides the revenue levels to be collected based on cost causationand the cost basis for each rate component.

4.1 Rate Design Criteria and Considerations
Prudent rate administration dictates that several criteria that are considered when setting utility rates. Some of these rate design criteria are listed below:
• Rates which are easy to understand from the customer’s perspective• Rates which are easy for the City to administer• Cost-based and proportional • Continuity, overtime, of the rate making philosophy• Provide revenue stability from month to month and year to year• Proportional and non-discriminatory (cost-based)• Meet the requirements of Proposition 218 Given the requirement and intent of Proposition 218, the last consideration, cost-based rates, should be of paramount importance and provide the primary guidance to utilities on ratestructure and policy. When developing the proposed rate designs, all the above-listed criteria can be taken into consideration. However, it should be noted that it is difficult, if not impossible, to design a rate that meets all the goals and objectives listed above. In designing rates, there are always trade-offs between the goals and objectives and a delicate balance must always be struck.

The establishment of cost-based and proportional rates was of paramount importance in the development of the City’s saltwater rate study. Meeting the requirements and documenting thesteps taken to develop cost-based and proportional rates has been in the forefront with the legalchallenges in the State of California on utility rates. A focus has been given to meeting the requirements of California Constitution article XIII D, section 6 (Article XIII D). A key component of Article XIII D is the development of rates which reflect the cost of providing service and are proportionally distributed between the customer classes of service, and the customers within each class. HDR would point out that there is no single methodology for proportionally assigningcosts to the customer classes. The Water Environment Federation Manual of Practice #27 provides methodologies which may be used to establish cost-based rates. Unfortunately, Article XIII D is not prescriptive and does not provide a specific methodology for establishing cost-based rates.

F Saltwater Rate Design 15 City of Ava Ion — Saltwater Rate Study HDR is of the opinion that the proposed rates meet the legal requirements of Article XIII D. HDR reaches this conclusion based upon the following:
• The revenue derived from saltwater rates does not exceed the funds required to provide the property related service (i.e., saltwater service). The proposed rates are designed to collect the overall revenue requirement of the City’s saltwater system. • The revenues derived from saltwater rates shall not be used for any purpose other than that for which the fee or charge is imposed. The revenues derived from the City’s saltwater rates are used exclusively to fund the City’s saltwater system O&M and provideadequate funding for capital improvement, repair, and replacement. • The amount of a fee or charge imposed upon a parcel or person as an incident of property ownership shall not exceed the proportional costs of the service attributable to the parcel. The Study has appropriately grouped customers into customer classes of service (residential, etc.) that reflect the customer usage patterns and system requirements (i.e., the benefits they receive from and burdens they place on the system) of each customer class of service. The grouping of customers and rates into these classesof service creates the proportionality expected under Article XIII D by having differing rates by customer classes of service which reflect both the level of revenue to be collected by the utility, and the manner in which these costs are incurred and assigned to customer classes of service based upon their proportional impacts.

4.2 Overview of the Proposed Rate Structures
In discussion with City staff several of the above goals and objectives were highlighted as key elements to be included within the proposed rate structure. These were:
• Proportional, and cost-based
• Revenue stability
The main goal was to provide the cost-basis, or justification, for the proposed rates to reflect the rate setting requirements in California. This was accomplished through the development of the cost of service analysis using industry standard approaches (for example, the Water Environment Federation Manuel of Practice No. 27) and the City’s system and customer characteristics. The cost of service analysis provided the allocation and proportional distribution of costs asdeveloped in the cost basis for purposes of final proposed rates.

4.3 Present and Proposed Saltwater Rates
The proposed rates for the City’s saltwater utility were designed to meet the total system revenue needs discussed in Section 2 and the cost of service results, shown in Section 3. The City’s current saltwater rate structure is relatively straight-forward. It is composed of an annual fixed rate based on the customers’ class of service. The City has specific service areas for saltwater service and so it is only available to a limited number of customers. Given the average rate per billing unit, the proposed rates can be developed. Presented below in Table 4 - 1 is a summary of the present and proposed annual saltwater rates which are based on the results of Table 3—i, above.F Saltwater Rate Design 16 City of Avalon — Saltwater Rate Study Table4—1
Present and Proposed Annual Saltwater Rates
Present FY FY FY FY 2029- FY 2030- Bi ing Unit Rates 2026-27 2027-28 2028-29 30 31 Residential Dwelling Unit $300.60 $329.15 $360.40 $394.65 $432.15 $473.20 Commercial Toilet/Urinal 300.60 329.15 360.40 394.65 432.15 473.20 Hotel Toilet/Urinal 165.35 181.05 198.20 217.05 237.70 260.25

4.4 Summary of the Saltwater Rate Study
This completes the analysis for the City’s saltwater rate study. The proposed rates were developed using generally accepted rate making methods and principles. As noted, the data typically used to establish customer relationships, in this case metered saltwater consumption, is not available. Given this, industry standard sewer flow rates were used to establish therelationships between the customer classes ofservice. The proposed saltwater rates for FY 2026- 27 through FY 2030-31 are necessary to adequately support the operating and capital needs of the City’s saltwater system. Adoption of the proposed rates are projected to provide adequatefunding for the saltwater utility over the planning period, while positioning the utility financially for anticipated future capital and operation needs. Even with these proposed annual adjustments, it is prudent for the City to annually evaluate the saltwater rates to confirm theirability to prudently fund O&M expenses and maintain key financial metrics.

4.5 Proposition 218
Given the requirements of what is commonly referred to as Proposition 218, a process must beutilized in order to adopt and implement a change in the City’s saltwater rates. The firstrequirement is that the proposed rates must be cost-based or justified and that is the reason the City has developed the Study. Once the cost basis for the proposed saltwater rates have beencalculated, a public notice process must be undertaken in order to move forward with theadoption of the proposed rates. This begins with the presentation of the proposed rates to the City Council. If the proposed rates are acceptable and prudent, the City Council can direct staff to prepare and mail the Proposition 218 notices to the City’s customers which outlines the changes in saltwater rates and the time, date, and location of the public hearing.

The City held the public hearing for the saltwater rate study on May 19th, 2026 at 5:00pm (see Appendix B). At the public hearing, the protest votes were counted and absent a majority of 50% + 1, the City Council was able to adopt the Study, unanimously. At a later date, the proposed saltwater rates, not to exceed the rates as noticed to customers, will be brought forward to the City Council for adoption and will be implemented for the next fiscal year starting July 1, 2026.

F)‘ Saltwater Rate Design 17 City of Ava Ion — Saltwater Rate Study I Technical Appendix
F Technical Appendix City of Ava Ion
— Saltwater Rate Study
18 Fina Repor

REDUCEREUSERECYCLE

CATALI NA
ISLAND
Comprehensive Solid Waste
Final Rate Study
June 2026 FY
1ô
FY
June 1, 2026
Mr. Matt Baker
Finance Director
City of Avalon
410 Avalon Canyon Road
Avalon, California 90704Subject: City of Avalon Final Solid Waste Rate Study Report Dear Mr. Baker:HDR Engineering, Inc. (HDR) is pleased to present the final report for the solid waste rate study conducted for the City of Avalon (City). The primary objective in conducting a rate study is to establish cost-based and proportional utility rates, for a five-year period, which are intended to provide adequate and sustainable funding for the solid waste utility’s operational and capitalneeds. This report outlines the approach, methodology, findings, and conclusions of the rate study process undertaken for the solid waste utility.

This report was developed utilizing the City’s accounting, operating, and customer billing records.

HDR has relied on this information to develop the rate study which formed our findings, conclusions, and recommendations. At the same time, the rate study was developed utilizing generally accepted rate setting principles. The conclusions and recommendations containedwithin this report are intended to provide the City with cost-based and proportional solid waste rates for its customers.

We appreciate the assistance provided by the City staff, management, and the City Council in thedevelopment of the rate study.Sincerely, HDR Engineering, Inc.

Josiah Close
Utility Rates Project Manager
Table of Contents
Executive Summary 1
Overview of the Rate Setting Process 7

1.1 Report Organization 71.2 Overview of the Rate Study Process 7

1.3 Generally Accepted Rate Setting Principles 81.4 Determining the Revenue Requirement 8

1.5 Designing Rates 91.6 Summary 9
2 Solid Waste Revenue Requirement 10

2.1 Determining the Solid Waste Utility Revenue Requirement 10

2.1.1 Determining the Time Period and Approach 102.1.2 Projection of Solid Waste Revenues 10

2.1.3 Projection of Solid Waste Operation and Maintenance Expenses 11

2.1.4 Projection of Solid Waste Capital Improvement Projects and Funding 12

2.1.5 Projection of Taxes and Transfer Payments 13

2.1.6 Projection of Debt Service 132.1.7 Reserve Funding 132.1.8 Summary of the Solid Waste Revenue Requirement 132.1.9 Review of the Solid Waste Reserve Levels 14

2.1.10 Consultant’s Conclusions 15
3 Solid Waste Cost of Service 16

3.1 Objectives of a Cost of Service Analysis 16

3.2 Development of the Solid Waste Cost of Service 163.3 Consultant’s Conclusions 17 4 Solid Waste Rate Design 18

4.1 Rate Design Criteria and Considerations 18

4.2 Present and Proposed Solid Waste Rates 194.3 Summary of the Solid Waste Rate Study Update 19

4.4 Proposition 218 20
Technical Appendix 21
F Executive Summary 1 City of Ava Ion — Solid Waste Rate Study xecutive Summary
HDR was retained by the City of Avalon to conduct a comprehensive solid waste rate study (Study). The objective of the Study was to review the City’s solid waste utility operating and capital costs to develop proposed solid waste rates which are proportional to the City’scustomers. The Study determined the adequacy of the existing solid waste rates and provides the framework for cost-based and proportional proposed solid waste rates.

Overview of the Rate Study Process
A solid waste rate study uses three interrelated analyses to address the adequacy and proportionality of a utility’s rates. These three analyses are a revenue requirement analysis, a cost of service analysis, and a rate design analysis. These three analyses are illustrated below in Figure ES-i.

Figure ES — 1
Overview of the Comprehensive Rate Analyses
Compares the revenues to the expenses of
the utility to determine the overall level of
rate adjustment required
Distributes the revenue requirement to the
customer classes ofservice in a Cost of Service Analysis proportional manner Considers both the revenue
Rate Design Analysis I requirement and cost ofservice
results to develop the proposed rates
The results from each of the above tasks were used as the basis for establishing cost-based and proportional rates for the City’s customers.Key Rate Study Results The technical analysis for the City’s solid waste rate study was developed based on the operating and capital infrastructure costs identified to provide solid waste service to the City’s customers.

The City’s comprehensive solid waste rate study resulted in the following key findings, conclusions, and recommendations:
• A revenue requirement analysis was developed for the time period of FY 2025-26 — FY 2035-36
• The starting point for the revenue requirement analysis was the City’s adopted FY 2025- 26 O&M budget and capital improvement plan
F Executive Summary 2 City of Avalon — Solid Waste Rate Study Revenue Requirement Analysis
• O&M expenses are projected to increase at historical inflationary levels, with no assumed changes to levels of service or anticipated extraordinary expenses • Rate revenues need to be increased to prudently fund the operating and capital needs over the Study time period
• A five-year rate transition plan (FY 2026-27 — FY 2030-31) was developed to adequately fund the operating and capital needs
v 4.5%, annually, in FY 2026-27 through FY 2030-31
• A review of the proportionality of the rates for the service fees among customers was developed as part of the Study
• The Study developed proposed solid waste rates for the FY 2026-27 through FY 2030-31 based on the overall revenue needs and a proportional allocation of costs • By FY 2030-31, the City should review the financial/rate status and the potential need for additional rate adjustments and/or a rate structure review Summary of the Solid Waste Revenue Requirement Analysis The starting point of the solid waste revenue requirement analysis was the adopted FY 2025-26 budget. HDR developed a projection of revenues and expenses for future years based on assumed escalation (inflationary) factors in collaboration with the City. The focus for purposes of rate setting was the next five-year period (FY 2026-27 — FY 2030-31).

The proper and adequate funding of capital projects is important to maintain the City’s existing solid waste infrastructure and service levels. At the same time, it is important to create a funding plan which maximizes the amount of funds available for capital investment yet minimizes solid waste rates over time. Provided below in Table ES - 1 is a summary of the capital improvementfunding plan over the rate setting period (FY 2025-26 through FY 2030—31).

Table ES—i
Summary of the Capital Improvement Plan ($000)
FY FY Pt FY Pt FY
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31
Capital Projects $500 $1,501 $268 $1,663 $111 $861
Unidentified Projects 0 0 0 0 0 (0)
To Capital Reserves 175 0 457 0 739 64
Total $675 $1,501 $725 $1,663 $850 $925
Less: Other Funding $0 $841 $0 $868 $0 $0
Total Rate Funded Capital $675 $660 $725 $795 $850 $925 Within the City’s proposed capital funding plan, the City is projected to fund $660,000 in FY 2025- 26 increasing to $925,000 by FY 2030-31; the average is approximately $791,000 per year. In addition to rate funding, it is assumed that the City will utilize the annual rate revenues for capitaland a limited amount of reserves to fund the capital improvement plan.

F Executive Summary 3 City of Ava Ion — Solid Waste Rate Study The revenue requirement analysis sums the solid waste utility’s operating and capital expenses and compares it to the total solid waste revenues to determine if a rate adjustment is necessary and, if so, at what level. As noted, a rate transition plan was developed to meet the financial needs of the solid waste utility.

Table ES-2
Summary of the Solid Waste Revenue Requirement ($000s)

FY FY FY FY FY FY
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31
Revenues
Rate Revenues $3,108 $3,108 $3,108 $3,108 $3,108 $3,108Non-Operating Revenues 355 360 365 370 379 397Total Revenues $3,464 $3,469 $3,474 $3,479 $3,487 $3,506 Expenses
O&M Expenses $2,702 $2,859 $2,944 $3,031 $3,118 $3,211
Taxes&Transfers 80 82 85 87 90 93
Rate Funded capital 675 660 725 795 850 925Net Debt Service 0 0 0 0 0 0 To/(From) Reserve Funding 6 7 6 4 27 43
Total Expenses $3,464 $3,609 $3,760 $3,918 $4,086 $4,271 BaI./(Def.) of Funds $0 ($140) ($286) ($439) ($598) ($765) BaI./(Def.) as % of Rate Rev 0.0% 4.5% 9.2% 14.1% 19.3% 24.6%Proposed Rate Adjustments 0.0% 4.5% 4.5% 4.5% 4.5% 4.5% Addi Revenue with Rate Adj. $0 $140 $286 $439 $598 $765 The results of the solid waste revenue requirement show the need for annual 4.5% rate adjustments from FY 2026-27 through FY 2030-3 1. The total deficiency of revenues before theproposed rate adjustments ranges from $140,000 in FY 2026-27 to $765,000 by FY 2030-3 1. Thelevel of the deficiency is driven, in part, by the funding of capital improvement projects and annual inflation of O&M expenses over the Study period. The proposed rate adjustments aredesigned to provide sufficient revenue to fund the identified annual O&M and capital needs of the solid waste utility and maintaining strong financial metrics for debt service coverage ratios and reserve balances.Summary of the Solid Waste Cost of Service Analysis HDR reviewed the solid waste rates with regards to cost basis and proportionality. The City contracts for solid waste collection and disposal services. In addition, the City does not have an account by account record of the size of container or type of waste collection for all of the customers. As such, the City cannot perform a straightforward assessment of solid waste generation rates by customer type. The proposed rate schedule does not include any changes or adjustments to the current rate structure and maintains the current relationships betweencustomer types.

F Executive Summary 4 City of Ava Ion — Solid Waste Rate Study Summary of the Solid Waste Rate Design Analysis
The last step of the rate study is the development of rates which reflect the overall revenue needs, as developed in the revenue requirement analysis. At this time, HDR is not recommendingrate structure changes. After review, it appears that the current rate structure for the solid wasteutility is reasonable. Table ES - 3 summarizes the present and proposed solid waste rates.

TableES—3
Present and Proposed Annual Solid Waste Rates
Customer B11 Present FY FY FY FY FY Class 1 ing Rates 2026-27 2027-28 2028-29 2029-30 2030-31 Residential (per DU) $928.20 $969.95 $1,013.60 $1,059.20 $1,106.85 $1,156.65Res> io units (per DU) 742.75 776.15 811.10 847.60 885.75 925.60 Shops / Office ($1 1000 sq ft) 1,466.75 1,532.75 1,601.70 1,673.80 1,749.10 1,827.80Grocer ($/ 1000 sq ft) 4,400.25 4,598.25 4,805.15 5,021.40 5,247.35 5,483.50Gathering Space ($/ 1000 sq ft) 733.35 766.35 800.85 836.90 874.55 913.90 Restaurants < 100 (per acct) 5,866.95 6,130.95 6,406.85 6,695,15 6,996.45 7,311.30 seatsRestaurants> 100 (per acct) 11,733.80 12,261.80 12,813.60 13,390.20 13,992.75 14,622.40 seatsRestaurants - (per acct) 2,933.45 3,065.45 3,203.40 3,347.55 3,498.20 3,655.60 Take OutHotel Room (per room) 353.75 369.65 386.30 403.70 421.85 440.85 Grease Removal (per gallon) $4.25 $4.45 $4.65 $4.85 $5.05 $5.30 The proposed annual solid waste rates maintain the current solid waste rate structure and onlythe level of the rate was adjusted.

Summary of the Solid Waste Rate Study
HDR completed a solid waste rate study based on the identified operating and capital expenses.Based on the technical analyses developed herein, HDR has proposed a comprehensive set ofrate recommendations for the solid waste utility. The following sections of the report provide amore detailed discussion of the technical analyses undertaken - along with the findings, conclusions, and recommendations of the study.

Proposition 218
Given the requirements of what is commonly referred to as Proposition 218, a process must be utilized in order to adopt and implement a change in the City’s solid waste rates. The first requirement is that the proposed rates must be cost-based or justified and that is the reason the City has developed the Study. Once the cost basis for the proposed solid waste rates have beencalculated, a public notice process must be undertaken in order to move forward with theadoption of the proposed rates. This begins with the presentation of the proposed rates to theCity Council. If the proposed rates are acceptable and prudent, the City Council can direct staff to prepare and mail the Proposition 218 notices to the City’s customers which outlines the changes in solid waste rates and the time, date, and location of the public hearing.

F Executive Summary 5 City of Ava Ion -Solid Waste Rate Study The City held the public hearing for the solid waste rate study on May 19th, 2026 at 5:00pm. At the public hearing, the protest votes were counted and absent a majority of 50% + 1, the City Council was able to adopt the Study, unanimously. At a later date, the proposed solid waste rates, not to exceed the rates as noticed to customers, will be brought forward to the CityCouncil for adoption and will be implemented for the next fiscal year starting July 1, 2026.

F Executive Summary 6 City of Ava Ion — Solid Waste Rate Study 1 Overview of the Rate Setting Process
The City of Avalon retained HDR Engineering, Inc. to perform a rate study for its solid waste utility.The rate study is designed to determine the adequacy of the existing rates and provide the basis for any adjustments to establish cost-based and proportional rates. This report describes the methodology, findings, and conclusions of the rate study process.1.1 Report Organization This report is organized in a sequential manner with this section providing an overview of utility rate setting principles, followed by sections that detail the specific technical and analytical stepsused to develop the City’s proposed solid waste rates. The following sections comprise the City’s solid waste rate study report:
• Section 2 reviews the development of the revenue requirement analysis • Section 3 reviews the development of the cost of service analysis • Section 4 reviews the development of the rate design analysis A technical appendix is attached at the end of the report which provides a copy of the analyses undertaken in the preparation of this report.

1.2 Overview of the Rate Study Process
A rate study consists of three interrelated analyses and Figure 1- 1 provides an overview of these analyses.

Figure 1—1
Overview of the Comprehensive Rate Analyses
Compares the revenues to the expenses of
Revenue Requirement Analysis 1 the utility to determine the overall level of adjustment required
Distributes the revenue requirement to the
customer classes ofservice in a Cost ofService Analysis proportional manner Considers both the revenue
Rate Design Analysis requirement and cost ofservice _____ results to develop the proposed rates The revenue requirement analysis is concerned with the overall revenues and expenses of the utility for the provision of solid waste services. From this analysis, a determination can be made as to the overall level of adjustment to rates. Next, a cost of service analysis is performed to F Overview of the Rate Setting Process 7 City of Ava Ion — Solid Waste Rate Study proportionally distribute the revenue requirement to the customers classes served (e.g., residential, commercial). Finally, once an overall level of rate adjustment is determined and aproportional distribution of those costs is completed, the last step of the rate study process is the design of rates to collect the appropriate level of revenues while considering the other rate design goals and objectives of the utility (e.g., revenue stability). For the City’s Study, all threeanalyses were conducted. The results from each task of the rate study were used as the basis for establishing cost-based and proportional solid waste rates for the City’s customers.

In developing the Study, HDR utilized generally accepted rate setting techniques and industrybest practices for the development of the City’s solid waste utility rate study. This report discusses the methodology, findings and conclusions of the rate study analysis. The Study has focused on the level of revenue needed to recover the costs of solid waste service for the City.

1.3 Generally Accepted Rate Setting Principles
As a practical matter, utilities should set rates around generally accepted or global principles and guidelines. Utility rates should be:
• Cost-based and proportional• Easy to understand and administer• Designed to conform with generally accepted rate setting techniques • Stable in their ability to provide adequate revenues for meeting the utility’s financial, operating, and regulatory requirements
• Established at a level that is stable from year-to-year from a customer’s perspective• Established in compliance with State and local legislative requirements

1.4 Determining the Revenue Requirement
Most public utilities use the cash basis’ approach for establishing the revenue requirement and setting rates. This approach conforms to most public utility budgetary requirements and the calculation is easy to understand and determine. A public utility:
• Totals its cash expenditures for a period of time to determine required revenues based on the cost of service the utility provides
• Adds operation and maintenance (O&M) expenses. Operation and maintenance expenses include the materials, electricity, labor, supplies, etc. needed to keep the utility functioning.
• Calculates capital costs by adding debt service payments (principal and interest) to capital improvements financed with rate revenues. In lieu of including capital improvements financed with rate revenues, a utility sometimes includes depreciation expense to stabilize annual revenue requirement.
1 This is the basis of accounting under which revenues are recorded when cash is received and expenditures are recorded when cash is disbursed.
j Overview of the Rate Setting Process 8 City of Ava Ion — Solid Waste Rate Study Under the cash basis approach, the sum of the capital and operating expenses equals the utility’s revenue requirement during any period of time (see Table 1- 2).

TabIel-2
Cash Basis Methodology
÷ O&M Expense
+ Taxes or Transfer Payments+ capital Improvements Financed with Rate Revenues ( Depreciation Exp.)+ Debt service (Principal + Interest)= Total Revenue Requirement Note that the two portions of the capital expense component (debt service and capitalimprovements financed from rates) are necessary under the cash basis approach because utilities generally cannot finance all capital facilities with long-term debt. The analyses developed withinthis report utilize the cash basis methodology. This is consistent with past practices in the City’s utility rate-setting process and is the most widely accepted method of accumulating costs for municipal utilities.

1.5 Designing Rates
For the Study, rates that meet the utility’s objectives are designed based on the revenuerequirement analysis and cost of service analysis. This provides rates that are cost-based (i.e., designed to collect a cost-based level of revenues) and proportional (i.e., reflect the costs placedon the system by a customer class and customers within a class).

1.6 Summary
This report will review and discuss the Study prepared for the City. This report has been prepared utilizing generally accepted solid waste rate setting methodologies and techniques to meet the requirements of Proposition 218.

F Overview of the Rate Setting Process 9 City of Ava Ion — Solid Waste Rate Study 2 Solid Waste Revenue Requirement
The development of the revenue requirement analysis is the first analytical step in the three-step comprehensive rate study process as described in Section 1. This section of the report describes the development of the revenue requirement analysis for the City’s solid waste utility. The City provided HDR with detailed revenue, expense, and customer billing data for the solid waste system that allowed for the development of the revenue requirement analysis.

The revenue requirement analysis, as developed for the City’s solid waste utility, determines the adequacy of solid waste rates at current rate levels. From this analysis, a determination can be made as to the overall level of rate revenue adjustment needed to provide adequate and prudent funding for both operating and capital expenses. HDR has developed an independent analysis based on the data and information provided by the City.

2.1 Determining the Solid Waste Utility Revenue Requirement In developing the revenue requirement, it was assumed the solid waste utility must financiallyrecover its costs of service to be financially stable. As a result, the revenue requirement as developed herein assumes the full and proper funding needed to operate and maintain the system on a financially sound and prudent basis. This includes maintaining adequate reserve levels, prudently funding annual repair and replacement needs (rate-funded capital), and meeting other industry standard financial metrics (e.g., debt service coverage), where applicable.Provided below is a more detailed discussion of the development of the revenue requirement analysis for the City’s solid waste utility.

2.1.1 Determining the Time Period and Approach
The first step in calculating the revenue requirement for the solid waste utility was to establish a time frame for the revenue requirement analysis. For the Study, the revenue requirement was developed for the time period of FY 2025-26 — FY 2035-36 with a focus on the next five-year period for rate setting purposes.

The second step in determining the revenue requirement for the City was to decide on the basis of accumulating costs. As discussed in the previous sections, the solid waste utility’s revenue requirement was established using a cash basis approach, the same methodology that was usedin prior rate studies and in the sewer and salt water utilities.

The primary financial inputs in this process were the City’s historic solid waste customer billing data, adopted O&M budget, and capital improvement plan. Presented below is a discussion of the analytical steps and key assumptions contained in the development of the solid waste revenue requirement analysis.

2.1.2 Projection of Solid Waste Revenues
The City receives revenue from two primary sources, rate revenue and miscellaneous revenue.The solid waste rate revenues are based on the current rate structure and collected on an annual F Solid Waste Revenue Requirement 10 City of Ava Ion — Solid Waste Rate Study basis. Other miscellaneous revenue includes items such as construction debris, grease removal, harbor fund contribution, and other revenues.

The first step in developing the revenue requirement was to develop a projection of solid waste rate revenues, at present rate levels, which was taken from the City’s FY 2025-26 budget. In total,using the present solid waste rates, the City is projected to receive approximately $3.1 million annually in rate revenues in FY 2025-26 through FY 2030-31 based on flat annual customer growth.

In addition to rate revenues, the City also receives miscellaneous revenues. For FY 2025-26, theprojected miscellaneous revenues are approximately $355,000. Miscellaneous revenues areprojected to increase slightly over the review period and are estimated to be approximately $397,000 by FY 2030-31. This increase is the result of an estimated increase in harbor enterprise fund revenues. The transfer from the harbor enterprise fund is based on the number of moorings and public trash cans and calculated at the present rates. Revenues will increase as the solid waste rate adjustment to keep the appropriate relationship to the level of service provided.

On a combined basis, considering the rate revenues along with miscellaneous revenues, the City’s total projected solid waste revenues are expected to be approximately $3.5 million in FY 2025- 26 remaining flat through FY 2030-31. Exhibit 3 of the Technical Appendix provides the detail of the various sources of revenues for the City’s Solid Waste utility.

2.1.3 Projection of Solid Waste Operation and Maintenance Expenses Operation and maintenance expenses are incurred by the City to operate and maintain the solid waste system. The costs incurred in this area are expensed during the current year and are not capitalized or depreciated. In general, O&M expenses are grouped into a number of different functional categories. To begin the process of projecting O&M expenses over the planning horizon, escalation factors were developed. Escalation factors were developed to project increases in the basic types of expenses incurred by the solid waste utility— e.g., labor, benefits, materials and supplies, utilities, equipment, insurance—and other miscellaneous expenses.

These escalation factors were based on historical increases in City costs for the solid waste utility.

For the Study review period, the escalation factors were assumed to be approximately 2.7% - 5.0% per year, depending upon the specific cost incurred.

The escalation of costs, using the escalation factors, assumes no changes in the current levels of service, meaning, no extraordinary changes in O&M levels were assumed. Given the City’sadopted budgeted for FY 2025-26 O&M expenses, HDR escalated the O&M expenses based on the previously mentioned escalation factors. Total solid waste O&M expenses for the City are projected to be approximately $2.7 million in FY 2025-26. Solid waste O&M expenses areprojected to increase to approximately $3.2 million in FY 2030-31 as a result of the assumed escalation factors over the time period. The budgeted and projected O&M expenses are shown in detail in Exhibit 3 of the Technical Appendix.
j Solid Waste Revenue Requirement 11 City of Ava Ion — Solid Waste Rate Study

2.1.4 Projection of Solid Waste Capital Improvement Projects and Funding The City has a long-term solid waste capital improvement plan that was utilized forthe rate study.The City’s solid waste capital improvement plan averages approximately $881,000 annually over the next five-year period of FY 2026-27 through FY 2030-31. Provided in Table 2 - 1 is the solid waste capital improvement funding plan for the period of FY 2025-26 — FY 2030-31. The actual capital projects completed during the time period will depend on available funding sources and priority of the projects. The primary funding sources for these projects are assumed to be fromrate funding of capital and available reserves. A significant capital expense during the review period is the landfill expansion which will provide additional capacity for the City.

TableZ—1
Summary of the Capital Improvement Funding Plan ($000)

FY FY FY FY FY FY
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31
Capital Projects $500 $1,501 $268 $1,663 $111 $861
Future Unidentified Projects 0 0 0 0 0 (0)
To Capital Reserves 175 0 457 0 739 64
Total $675 $1,501 $725 $1,663 $850 $925Less: Other Funding Solid Waste Fund - 131 $0 $841 $0 $868 $0 $0
New Revenue Bonds 0 0 0 0 0 0
Total $0 $841 $0 $868 $0 $0
Total Rate Funded Capital $675 $660 $725 $795 $850 $925 There are numerous funding sources that can be used to fund the capital projects. Among the methods that may be used to fund solid waste capital improvement projects are long-term debt,reserves, and rates. Historically the City has utilized rates and reserves to fund the capitalimprovements. Based on the rate transition plan developed as part of this revenue requirement, the City is projected to have adequate resources to provide funding for these capital projects.

Provided below is a summary of the typical funding sources the City has used, and will continue to use, to fund the capital improvements over the next five year period.

2.1.4.1 Rate Funding
A general financial guideline states that, at a minimum, a utility should fund an amount from rates which is equal to or greater than the annual depreciation expense. Annual depreciation expense reflects the current investment in plant being depreciated or “losing” its useful life.

Therefore, this portion of plant investment needs to be annually funded to maintain the existing level of infrastructure. In addition, consideration should be given to using rate revenues to fund an amount greater than the annual depreciation expense for repairs and replacements as costsescalate over time and replacement cost is generally greater than the original cost. Whenever possible, the City should be funding capital projects from rates in an amount greater than annual depreciation expense to better reflect replacement costs. At the present time, the annualdepreciation expense of the solid waste utility is approximately $46,000 based on the City’s F Solid Waste Revenue Requirement 12 City of Avalon — Solid Waste Rate Study financial statements. Over the course of the six-year review period, the City is funding a total of $4.6 million via rates, or an average of $770,000 per year.

2.1.4.2 Reserve Funding
The use of reserves to fund capital improvements is another method available to the City, when and if reserves are available. During the review period of the rate study, there will be approximately $1.7 million in reserves used as a funding source for capital improvement projectsover the review period. The solid waste utility reserve fund has historically been established by annual surpluses in years where revenues may be greater than the annual expenses of the solid waste utility. This allows the City to reserve funds for projects in later years when more or larger projects are undertaken. This approach helps to mitigate future rate adjustments and smooth rates overtime. However, close attention should be given to the reserve balance as to not reduceit below the minimum target.

2.1.4.3 Long-Term Debt
At the present time, there are no outstanding solid waste debt service obligations. Additionally, no new debt issues are projected during the projected time period.

2.1.5 Projection of Taxes and Transfer Payments
The City has an obligation to transfer funds on average $86,000 annually from FY 2025-26 through FY 2030-31 to the solid waste infrastructure fund in anticipation of costs for the closure of their landfill. There are no other taxes or transfer payments included in the study.

2.1.6 Projection of Debt Service
The final component of the solid waste revenue requirement is debt service. At the present time, the City has no outstanding debt obligations and no additional long-term borrowing has been identified in the Study.

2.1.7 Reserve Funding
This study has used reserve funding - or the transfer to/from reserve funds - to smooth and mitigate the rate adjustments over the Study time period. Reserve funding can also be used tohelp build or replenish reserves if they have been drawn down in prior years. In this analysis, change in working capital is primarily used to balance the revenue requirement to the proposed rate adjustments.2.1.8 Summary of the Solid Waste Revenue Requirement Given the above projections of revenues and expenses, a summary of the revenue requirement for the solid waste utility can be developed. In developing the final revenue requirement, consideration was given to the financial planning considerations of the City. In particular,emphasis was placed on attempting to minimize rates, while maintaining adequate funds to support the operational and capital expenses throughout the projected time period. Presented in Table 2 - 2 is a summary of the solid waste revenue requirement. A detailed analysis of the solid waste revenue requirement can be found in Exhibit 3 of the Technical Appendix.

F Solid Waste Revenue Requirement 13 City of Avalon —Solid Waste Rate Study Table2-2
Summary of the Solid Waste Revenue Requirement ($000s)

FY FY FY FY FY FY
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31
Revenues
Rate Revenues $3,108 $3,108 $3,108 $3,108 $3,108 $3,108Non-Operating Revenues 355 360 365 370 379 397Total Revenues $3,464 $3,469 $3,474 $3,479 $3,487 $3,506 Expenses
O&M Expenses $2,702 $2,859 $2,944 $3,031 $3,118 $3,211
Taxes & Transfers 80 82 85 87 90 93
Rate Funded Capital 675 660 725 795 850 925Net Debt Service 0 0 0 0 0 0 To/(From) Reserve Funding 6 7 6 4 27 43
Total Expenses $3,464 $3,609 $3,760 $3,918 $4,086 $4,271Bal./(Def.) of Funds $0 ($140) ($286) ($439) ($598) ($765)Deficiency as % of Rate Revenue 0.0% 4.5% 9.2% 14.1% 19.3% 24.6% Proposed Rate Adjustments 0.0% 4.5% 4.5% 4.5% 4.5% 4.5% Addi Revenue with Rate Adj. $0 $140 $286 $439 $598 $765 It is important to note the annual deficiencies shown in Table 2 - 2 are cumulative. That is, rate adjustments in the initial years will reduce the overall deficiency in the remaining years. The results of the revenue requirement analysis indicate, absent rate revenue adjustments, there is a deficiency of funds over the review period (FY 2025-26 — FY 2030-31). The deficiency ranges from approximately $140,000 in FY 2025-26 to $765,000 in FY 2030-31. Over this time period,the overall deficiency in rates is approximately 24.6%. The level of this overall deficiency in rates is being driven by a variety of factors, but in large part it is a function of the need to strengthen the rate funding for capital infrastructure (i.e., annual renewal and replacement capital funding), as well as annual inflationary increases in O&M expenses. Based on the City’s solid waste revenue requirement analysis, annual rate adjustments have been proposed over the five-year period.

The proposed rate transition plan in Table 2-2 is projected to adequately and fully fund the City’s solid waste O&M, along with the planned capital improvement projects. At the same time, these proposed rate adjustments will strengthen the overall financial health of the solid waste utility.2.1.9 Review of the Solid Waste Reserve Levels Reserves are an important part of a utility’s financial picture. There can be many differentpurposes for reserves. Currently, the solid waste reserve fund has a minimum target balance of $1.3 million; this is calculated as approximately 180 days of O&M expenses, which is a typical industry standard level. The graphic of the solid waste reserve levels shows the balance of reserves for the City’s solid waste utility over the review period after the rate adjustments havebeen implemented.

F Solid Waste Revenue Requirement 14 City of Avalon — Solid Waste Rate Study Solid Waste Utility - Reserve Funds
$2,500,000$2,000,000
$1,500,000$1,000,000
$500,000
$0
FY 2030-3 1
The City should also routinely analyze the reserve funds to maintain adequate levels. As stated earlier, the reserve fund is used to help pay for large capital infrastructure projects that require funding above the level of annual rate funding. To ensure that functionality, additional funding of the reserve fund may be required in the future.

2.1.10 Consultant’s Conclusions
Based on the City’s revenue requirement analysis the proposed overall solid waste rate adjustments are 4.5%, annually, in FY 2025-26 through FY 2030-31. These proposed rateadjustments are needed to fully fund the projected operating costs of the utility, along with thecapital improvement plan.

F Solid Waste Revenue Requirement City of Ava Ion — Solid Waste Rate Study 15 FY 2025-2 6 FY 2026-27 FY 2027-28 FY 2028-29
Solid Waste Fund - 131 — — — Target: 180 days of o&M
I
FY 2029-30
1 Solid Waste Cost of Service
In the previous section, the revenue requirement analysis focused on the total revenues required to adequately fund the City’s solid waste utility. This section will provide an overview of thesecond step in a comprehensive solid waste rate study; the cost of service analysis developed for the City’s solid waste utility.The objective of the cost of service analysis is different from determining the revenue requirement. Whereas the revenue requirement analysis determines the utility’s overall revenueneeds, the cost of service analysis determines the proportional distribution of the revenuerequirement to establish proposed rates for the proposed time period. In this case, the revenuerequirement for FY 2026-27, the first year of the proposed rate transition plan, was used for establishing the cost of service analysis.3.1 Objectives of a Cost of Service Analysis There are two primary objectives in conducting a cost of service analysis:
• Proportionally distribute the City’s solid waste revenue requirement, and • Derive the cost basis for subsequent rate designs by customer class of service The objectives of the cost of service analysis are different from determining a revenue requirement. As noted in the previous section, a revenue requirement analysis determines theutility’s overall financial needs, while the cost of service analysis determines the proportionalmanner to collect the calculated revenue requirement.3.2 Development of the Solid Waste Cost of ServiceIt is important to note, the City contracts for solid waste collection and disposal services.

Consequently, the City does not have information available on customers in regards to the sizeof the solid waste container, the frequency of service for each customers, or the number of pick ups. Given this, the information necessary to identify the cost components related to providing service to the City’s customers is unavailable. It should also be noted that information on actualwaste generation by customer type is limited, as most collection and disposal practices do notseparate by customer type in a similar way to how the City charges for solid waste service. For example, a utility typically does not have information on the average tonnage collected from an individual restaurant or grocery store. At best, some utilities may have total tonnage collected byresidential or commercial in aggregate.

The City’s solid waste rate structure is further complicated by the fact that a customer may not have a specified, or individual, solid waste disposal container. In many cases, multiple customers dispose of their waste in a single solid waste disposal container. As such, the solid wastecontractor may collect waste multiple times a week, or even multiple times a day depending on the need and activities in the area. Given this, it is difficult, if not impossible, to determine those customers that benefit from a specific container or need at the current time. As a result, thecurrent rate structure relationships were maintained. The total cost to distribute is based on the F Solid Waste Cost of Service 16 City of Avalon —Solid Waste Rate Study FY 2026-27 revenue requirement of $3,877,731 (Table 2 — 2) less non-operating revenues of $341,746 and equals $3,535,985.

Table 3 — 2 shows the distribution of costs based on the relationships in Table 3 — 1. The total distributed costs
Table3-1
Distributed Costs — FY 2026-27
% of Distributed # of Billing Unit Cost Billing
Customer Class Total Costs Units rounded Unit
Residential 43.8% $1,447,165 1,492 $969.95 Dwelling UnitRes > 10 Units 14.3% 471,123 607 776.15 Dwelling Unit Shops! Office 13.4% 442,965 289 1,532.75 1,000 sq. ft.Grocer 3.3% 108,059 24 4,598.25 1,000sq.ft.Gathering Space 5.4% 177,410 232 766.35 1,000 sq. ft.

Restaurants < 100 seats 2.8% 91,964 15 6,130.95 Account Restaurants> 100 seats 4.1% 134,880 11 12,261.80 AccountRestaurants -Take Out 2.1% 70,505 23 3,065.45 AccountHotel Room 9.2% 304,222 823 369.65 Room Grease Removal 1.7% 57.280 12,872 4.45 Gallon
Total $3,305,574

3.3 Consultant’s Conclusions
The City has an established rates by customer class of service. Given the current waste generation assumptions, the current relationships were maintained. Given this, the City’s proposed solid waste rates can be developed based on the distributed costs.

Solid Waste Cost of Service 17
City of Ava Ion —Solid Waste Rate Study
4 Solid Waste Rate Design
The final step of the City’s comprehensive solid waste rate study is the design of proposed ratesto collect the appropriate levels of revenues, based on the results of both the revenue requirement and the cost of service analyses. In developing the City’s proposed solid waste rates, consideration is given to the level of the rates as well as the structure of the rates. The level of rates reflects the amount of revenues that should be collected while the structure of the rates ishow it is collected (i.e., component charges) from the customers.

4.1 Rate Design Criteria and Considerations
Prudent rate administration dictates that several criteria should be considered when settingutility rates. Some of these rate design criteria are listed below:
• Rates which are easy to understand from the customer’s perspective• Rates which are easy for the City to administer• Consideration of the customer’s ability to pay• Cost-based• Provide revenue stability from month to month and year to year • Proportional and non-discriminatory (cost-based)• Defensible (Proposition 218 compliant) Given the requirement and intent of Proposition 218, the last consideration, cost-based rates,should be of paramount importance and provide the primary guidance to utilities on ratestructure and policy.

The establishment of cost-based and proportional solid waste rates was of paramount importance in the development of the City’s Study. Meeting the requirements and documenting the steps taken to develop cost-based and proportional rates has been in the forefront of meeting the requirements of California Constitution article XIII D, section 6. A key component of Article XIII D is the development of rates which reflect the cost of providing service and are proportionally distributed between the customer classes of service, and the customers within each class. HDR would point out that there is no single methodology for proportionally assigningcosts to the customer classes. Unfortunately, Article XIII D is not prescriptive and does not provide a specific methodology for establishing cost-based rates.HDR is of the opinion that the proposed rates meet the legal requirements of Article XIII D. HDRreaches this conclusion based upon the following:
• The revenue derived from solid waste rates does not exceed the funds required to provide the property related service (i.e., solid waste service). The proposed rates are designed to collect the overall revenue requirement of the City’s solid waste utility. • The revenues derived from solid waste rates shall not be used for any purpose other than that for which the fee or charge is imposed. The revenues derived from the City’s solid waste rates are used exclusively to fund the City’s solid waste utility O&M and provide adequate funding for capital improvement, repair, and replacement of the solid waste facilities.

F Solid Waste Rate Design 18 City of Ava Ion — Solid Waste Rate Study • The amount of a fee or charge imposed upon a parcel or person as an incident of property ownership shall not exceed the proportional costs of the service attributable to the parcel. The Study has appropriately grouped customers into customer classes of service (residential, restaurants, hotel, etc.) that reflect the customer usage patterns andsystem requirements (i.e., the benefits they receive from and burdens they place on the utility) of each customer class of service. The grouping of customers and rates into these classes of service creates the proportionality expected under Article XIII D by having differing rates by customer classes of service which reflect both the level of revenue to be collected by the utility, and the manner in which these costs are incurred and assigned to customer classes of service based upon their proportional impacts. 4,2 Present and Proposed Solid Waste Rates
In developing the proposed rate designs, and as noted previously, the City’s existing solid wasterate structure was examined and analyzed. Based on the analyses completed, rates were developed for FY 2026-27 to FY 2030-31 for each class of service. Provided in Table 4 - 1 is a summary of the present and proposed annual solid waste rates and based on Table 3-1.

Table4—1
Present and Proposed Annual Solid Waste Rates
• Present FY FY FY FY FY Customer Class Billing Unit Rates 2026-27 2027-28 2028-29 2029-30 2030-31 Residential (per DU) $928.20 $969.95 $1,013.60 $1,059.20 $1,106.85 $1,156.65 Res >10 Units (per DU) 742.75 776.15 811.10 847.60 885.75 925.60 Shops / Office ($1 1000 sq ft) 1,466.75 1,532.75 1,601.70 1,673.80 1,749.10 1,827.80Grocer ($/ 1000 sq ft) 4,400.25 4,598.25 4,805.15 5,021.40 5,247.35 5,483.50Gathering Space ($/ 1000 sq ft) 733.35 766.35 800.85 836.90 874.55 913.90 Restaurants (per acct) 5,866.95 6,130.95 6,406.85 6,695.15 6,996.45 7,311.30 <100 seatsRestaurants (per acct) 11,733.80 12,261.80 12,813.60 13 390.20 13,992.75 14,622.40 > 100 seats
Restaurants (per acct) 2,933.45 3,065.45 3,203.40 3,347.55 3,498.20 3,655.60 -TakeOutHotel Room (per room) 353.75 369.65 386.30 403.70 421.85 440.85 Grease Removal (per gallon) 4.25 4.45 4.65 4.85 5.05 5.30

4.3 Summary of the Solid Waste Rate Study Update
This completes the analysis for the City’s solid waste utility. The solid waste utility rate study has developed a financial plan for the full funding of operating and capital needs. The recommendedannual rate adjustments are 4.5% annually from FY 2026-27 through FY 2030-31. The technicalanalysis completed for the development of the comprehensive solid waste rate study and theproposed rate adjustments can be found in the Technical Appendix of this report.

Solid Waste Rate Design 19
City of Ava Ion — Solid Waste Rate Study

4.4 Proposition 218
Given the requirements of what is commonly referred to as Proposition 218, a process must be utilized in order to adopt and implement a change in the City’s solid waste rates. The first requirement is that the proposed rates must be cost-based or justified and that is the reason the City has developed the Study. Once the cost basis for the proposed solid waste rates have beencalculated, a public notice process must be undertaken in order to move forward with theadoption of the proposed rates. This begins with the presentation of the proposed rates to theCity Council. If the proposed rates are acceptable and prudent, the City Council can direct staff to prepare and mail the Proposition 218 notices to the City’s customers which outlines the changes in solid waste rates and the time, date, and location of the public hearing.

The City held the public hearing for the solid waste rate study on May 19th, 2026 at 5:00pm. At the public hearing, the protest votes were counted and absent a majority of 50% + 1, the City Council was able to adopt the Study, unanimously. At a later date, the proposed solid waste rates, not to exceed the rates as noticed to customers, will be brought forward to the City Council for adoption and will be implemented for the next fiscal year starting July 1, 2026.

F Solid Waste Rate Design 20 City of Ava Ion — Solid Waste Rate Study Technical Appendix
j
Technical Appendix
City of Avalon
— Comprehensive Solid Waste Rate Study
21 Solid Waste Rate Study
Revenue Requirement Summary
Exhibit 1
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 Revenue
Rate Revenues $3,108,472 $3,108,472 $3,108,472 $3,108,472 $3,108,472 $3,108,472 Non-Operating Revenues 355,086 360,302 365,217 370,219 378,661 397,239 Total Revenues $3,463,558 $3,468,774 $3,473,690 $3,478,691 $3,487,134 $3,505,711 Expenses
Total Operations & Maintenance $2,702,466 $2,859,468 $2,943,998 $3,031,140 $3,118,068 $3,210,590 Taxes/Transfers 80,000 82,400 84,872 87,418 90,041 92,742 Rate Funded Capital 675,000 660,000 725,000 795,000 850,000 925,000 Net Debt Service 0 0 0 0 0 0
Reserve Funding 6,092 6,788 5,877 3,944 27,464 42,629
Total Revenue Requirement $3,463,558 $3,608,656 $3,759,747 $3,917,502 $4,085,572 $4,270,961 Balance/(Deficiency) of Funds $0 ($139,881) ($286,057) ($438,811) ($598,439) ($765,250) Bal/(Def.) as a % of Rate Rev. 0.0% 4.5% 9.2% 14.1% 19.3% 24.6% Proposed Rate Adjustment 0.0% 4.5% 4.5% 4.5% 4.5% 4.5%
Addi Revenue from Adj. $0 $139,881 $286,057 $438,811 $598,439 $765,250 Total Bal/(Def.) of Funds $0 ($0) $0 $0 $0 ($0)
AddI Rate Increase Needed 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Avg Res Annual Bill $928.20 $969.97 $1,013.62 $1,059.23 $1,106.90 $1,156.71 Total Ending Balance $5,979,529 $5,227,966 $5,775,909 $4,999,195 $5,855,827 $6,055,556 lof9 06/01/2026
City of Ava Ion
Solid Waste Rate Study
Exhibit 2
Escalation Factors
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 Revenues
Customer Growth Calculated 0.0% 0.0% 0.0% 0.0% 0.0%
Consumption Growth 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Miscellaneous Revenues 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Expenses
Labor Budget 5.0% 5.0% 5.0% 5.0% 5.0%
Benefits -Medical Budget 5.0% 5.0% 5.0% 5.0% 5.0%
Benefits -Other Budget 4.0% 4.0% 4.0% 4.0% 4.0%
Materials & Supplies Budget 3.5% 3.5% 3.5% 3.5% 3.5%
Equipment Budget 4.0% 4.0% 4.0% 4.0% 4.0%
Miscellaneous Budget 3.0% 3.0% 3.0% 3.0% 3.0%
Utilities Budget 4.0% 4.0% 4.0% 4.0% 4.0%
Insurance Budget 4.0% 4.0% 4.0% 4.0% 4.0%
Sanitation Contract Budget 2.7% 2.7% 2.7% 2.7% 2.7%
Rate Adjustment 0.0% 4.5% 4.5% 4.5% 4.5% 4.5%
Flat Budget 0.0% 0.0% 0.0% 0.0% 0.0%
Interest 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%
New Debt Service
Low Interest Loans
TerminYears 20 20 20 20 20 20
Rate 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
Revenue Bond
TerminYears 20 20 20 20 20 20
Rate 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
2 of 9 06/01/2026
Rate Revenues
Budget Projected
FY 2025-26 FY 202 6-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 Notes Total Rate Revenues $3,108,472 $3,108,472 $3,108,472 $3,108,472 $3,108,472 $3,108,472 As Customer Growth Non-Operating Revenues
Harbor
Interest
Enterprise Fund
Oil Recycling Grant
Construction Debris
Grease Removal
Total Non-Operating Revenues
$71,500 $33,947 $30,238 $26,228 $25,252 $33,988
55,000 191,649 200,273 209,285 218,703 228,544
103,880 10,000 10,000 10,000 10,000 10,000
70,000 70,000 70,000 70,000 70,000 70,000
54,706 54,706 54,706 54,706 54,706 54,706
$355,086 $360,302 $365,217 $370,219 $378,661 $397,239
Calcd on Oper. Balance
As Rate Adjustment
As Miscellaneous Revenues
As Miscellaneous Revenues
As Customer Growth
Total Revenues $3,463,558 $3,468,774 $3,473,690 $3,478,691 $3,487,134 $3,505,711 Solid Waste Admin
Salaries & Benefits
Salaries Regular
Overtime Regular
FICA Retirement
Calpers Unfunded Liab Pmt
Health/Life Insurance
Workers Comp
Unemployment Ins
Special
Uniforms
Dept. Expense
Total
Communications
Salaries & Benefits
$16,859 $17,702 $18,587 $19,516 $20,492 $21,517
633 665 698 733 769 808
3,045 3,167 3,293 3,425 3,562 3,705
3,875 4,030 4,191 4,359 4,533 4,715
3,334 3,501 3,676 3,860 4,052 4,255
1,230 1,279 1,330 1,384 1,439 1,496
48 50 52 54 56 58
60 62 64 67 69 71
500 518 536 554 574 594
500 518 536 554 574 594
$30,084 $31,490 $32,963 $34,506 $36,121 $37,813
As Labor
As Labor
As Benefits -Other
As Benefits - Other
As Benefits -Medical
As Benefits -Other
As Insurance
As Materials & Supplies
As Materials & Supplies
As Materials & Supplies
City of Avalon
Solid Waste Rate Study
Exhibit 3
Revenue Requirement
Revenues

3 of 9 06/01/2026
City of Ava Ion
Solid Waste Rate Study Page 2 of 4
Exhibit 3
Revenue Requirement
Budget Projected
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-3 1 Notes Maintenance & Operations
Rent - General $16,000 $16,560 $17,140 $17,739 $18,360 $19,003 As Materials & Supplies Anaerobic Digester Maintenance 0 0 0 0 0 0 As Materials & Supplies Total Maintenance & Operations $16,000 $16,560 $17,140 $17,739 $18,360 $19,003 Contract Services
Professional Services $5,000 $5,250 $5,513 $5,788 $6,078 $6,381 As Labor City Attorney Retainer 10,000 10,500 11,025 11,576 12,155 12,763 As Labor Used Oil 0 0 0 0 0 0 As Labor
Household Hazardous Waste 0 0 0 0 0 0 As Materials & Supplies Hazardous Waste Disposal 140,000 144,900 149,972 155,221 160,653 166,276 As Materials & Supplies Sanitation Contract 2,285,000 2,346,695 2,410,056 2,475,127 2,541,956 2,610,589 As Sanitation Contract SWRCB Annual Permit 10,000 10,350 10,712 11,087 11,475 11,877 As Materials & Supplies Citywide Trash Roundup 0 0 0 0 0 0 As Materials & Supplies Recycling Program Expansion 0 77,625 80,342 83,154 83,154 86,064 As Miscellaneous Total Contract Services $2,450,000 $2,595,320 $2,667,619 $2,741,953 $2,815,471 $2,893,950 Internal Services
General Insurance $39,391 $40,966 $42,605 $44,309 $46,081 $47,925 As Insurance Admin Overhead 156,492 164,316 172,532 181,159 190,217 199,727 As Labor Total Internal Services $195,882 $205,282 $215,137 $225,468 $236,298 $247,652 Total Solid Waste Admin $2,691,966 $2,848,653 $2,932,859 $3,019,666 $3,106,250 $3,198,418 Solid Waste Infrastructure
Maintenance & Operations
Brown Bags $10,500 $10,815 $11,139 $11,474 $11,818 $12,172 As Miscellaneous Total Maintenance& Operations $10,500 $10,815 $11,139 $11,474 $11,818 $12,172 Total Solid Waste Infrastructure $10,500 $10,815 $11,139 $11,474 $11,818 $12,172 Solid Waste Landfill Expansion $0 $0 $0 $0 $0 $0
Total Operations & Maintenance $2,702,466 $2,859,468 $2,943,998 $3,031,140 $3,118,068 $3,210,590 4 of 9 06/01/2026
City of Avalon
Solid Waste Rate Study
Exhibit 3
Revenue Requirement
Budget
FY 2025-261 FY 2026-27
Projected
FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 Notes
Taxes I Transfers

Post Closure Funding $80,000 $82,400 $84,872 $87,418 $90,041 $92,742 Total Taxes! Transfers $80,000 $82,400 $84,872 $87,418 $90,041 $92,742 Rate Funded Capital $675,000 $660,000 $725,000 $795,000 $850,000 $925,000 Debt
New
Service
SRF Loans $0 $0 $0 $0 $0 $0
New Revenue Bonds 0 0 0 0 0 0
Total Debt Service $0 $0 $0 $0 $0 $0
Less Connection Fees $0 $0 $0 $0 $0 $0
Net Debt Service $0 $0 $0 $0 $0 $0
Reserve Funding
To / (From) Solid Waste Fund -131
To / (From) Solid Waste Infrastructure Fund - 132
Total Reserve Funding
Total Revenue Requirement
As Miscellaneous
$46,463 FY 2023-24 Depr.

CaIc @ 3% for 20 Yrs
Caic @ 5% for 20 Yrs
BaI./(Def.) of Funds
Rate Adj. as a % of Rate Rev.

Proposed Rate Adjustment
Months ofAdjustment
AddI Revenue from Adj.

Total Bal/(Def.) of Funds
$6,092 $6,788 $5,877 $3,944 $27,464 $42,629
0 0 0 0 0 0
$6,092 $6,788 $5,877 $3,944 $27,464 $42,629
$3,463,558 $3,608,656 $3,759,747 $3,917,502 $4,085,572 $4,270,961 $0 ($139,881) ($286,057) ($438,811) ($598,439) ($765,250)

0.0% 4.5% 9.2% 14.1% 19.3% 24.6%

0.0% 4.5% 4.5% 4.5% 4.5% 4.5%
12 12 12 12 12 12
$0 $139,881 $286,057 $438,811 $598,439 $765,250
$0 ($0) $0 $0 $0 ($0)
Addl Rate Increase Needed 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 5 of 9 06/01/2026
City of Avalon
Solid Waste Rate Study
Exhibit 3
Revenue Requirement
$928.20
$928.20
$969.97 $1,013.62 $1,059.23 $1,106.90

41.77 43.65 45.61 47.67

41.77 85.42 131.03 178.70
$1,933,253 $2,114,346 $1,280,383 $1,743,454 $879,321
181,092 6,788 463,071 3,944 766,592
0 (840,750) 0 (868,077) 0
$2,114,346 $1,280,383 $1,743,454 $879,321 $1,645,913
$1,332,723 $1,410,149 $1,451,835 $1,494,809 $1,537.677
$1,156.71

49.81 228.51
Solid Waste Infrastructure Fund -132
Beginning Balance $3,785,183 $3,865,183 $3,947,583 $4,032,455 $4,119,873 $4,209,914 Plus: To Reserves 0 0 0 0 0 0
Less: Uses of Funds 0 0 0 0 0 0
Landfill Closure 80,000 82,400 84,872 87,418 90,041 92,742 Ending Balance $3,865,183 $3,947,583 $4,032,455 $4,119,873 $4,209,914 $4,302,656 Total Ending Balance $5,979,529 $5,227,966 $5,775,909 $4,999,195 $5,855,827 $6,055,556

Budget Projected
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-3 1 Avg Res Annual Bill
After Proposed Rate Adjustment
Annual $ Change
Cumulative Change
Reserve Funds
Total Beginning Balance
Solid Waste Fund - 131
Beginning Balance
Plus: To Reserves
Less: Uses of Funds
Notes
$5,718,436 $5,979,529 $5,227,966 $5,775,909 $4,999,195
Ending Balance
Target: 180 days of O&M
$1,645,913
$5,855,827
106,987
0 $1,583,305
$1,752,900
6 of 9 06/01/2026
City of Avalon
Solid Waste Rate Study
Exhibit 4
Capital Improvement Plan
Future Unidentified Projects
Inflation 3.5%
To Capital Reserves $175,000 $0 $457,194 $0 $739,128 $64,358 Total Capital Improvement Projects $675,000 $1,500,750 $725,000 $1,663,077 $850,000 $925,000 Less: Outside Funding Sources
Solid Waste Fund -131 $0 $840,750 $0 $868,077 $0 $0
NewSRF Loans 0 0 0 0 0 0
New Revenue Bonds 0 0 0 0 0 0
Total Outside Funding Sources $0 $840,750 $0 $868,077 $0 $0 Rate Funded Capital $675,000 $660,000 $725,000 $795,000 $850,000 $925,000 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 Capital Projects
Fuel Tank Replacement
Grinder/Chipper Replacement
Pebbly Beach Landfill Life Project
Retaining Wall Stall Repair
Warehouse Concrete Flooring
Warehouse Roof Replacement
Pebbly Beach Landfill Wall
Anerobic Digester
Total Capital Projects
$0 $0 $53,561 $0 $0 $0
0 465,750 0 0 0 0
0 1,035,000 0 1,385,897 0 860,642
0 0 0 0 110,872 0
0 0 0 277,179 0 0
0 0 214,245 0 0 0
500,000 0 0 0 0 0
0 0 0 0 0 0
$500,000 $1,500,750 $267,806 $1,663,077 $110,872 $860,642 $0 $0 $0 $0 $0 ($0)
7 of 9 06/01/2026
City of Avalon
Solid Waste Rate Study Page 1 of 1
Exhibit 5
Revenues at Present Rates
Effective 7/1/25 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-26 Aug-26 Sep-26 Oct-26 Nov-26 Dec-26 Total Fixed Charge Unit Rate
Residential (per DU( $928.20 1,492 1,492
Res> 10 Units (per DU( 742.75 607 607
Shops / Office ($1 1000 sq ft( 1,466.75 289 289
Grocer ($1 1000 sq ft( 4,400.25 24 24
Gathering Space ($1 1000 sq ft) 733.35 232 232
Restaurants < 100 seats (per acct( 5,866.95 iS 15
Restaurants>100 seats (per acct( 11,733.80 11 ii
Restaurants - Take Out (per acct( 2,933.45 23 23
Hotel Room (per room( 353.75 823 823
3,515 0 0 0 0 0 0 0 0 0 0 0 3,515
TotalFixedChargeRevenue $3,108,472 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,108,472 Variable Charge Unit $1 gallon
Grease Removal (per gallon( $4.25 12,872 0 0 0 0 0 0 0 0 0 0 0 12,872 Total Variable Charge Revenue $54,706 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $54,706 Total Revenue $3,163,178 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,163,178 Revenue
Summary
Residential $1,384,874 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,384,874 Res>10 Units 450,849 0 0 0 0 0 0 0 0 0 0 0 450,849
Shops! Office 423,891 0 0 0 0 0 0 0 0 0 0 0 423,891
Grocer 103,406 0 0 0 0 0 0 0 0 0 0 0 103406
Gathering Space 169,771 0 0 0 0 0 0 0 0 0 0 0 169,771
Restaurants< 100 seats 88,004 0 0 0 0 0 0 0 0 0 0 0 88,004 Restaurants> 100 seats 129,072 0 0 0 0 0 0 0 0 0 0 0 129,072 Restaurants - Take Out 67,469 0 0 0 0 0 0 0 0 0 0 0 67,469 Hotel Room 291,136 0 0 0 0 0 0 0 0 0 0 0 291,136
Grease Removal 54,706 0 0 0 0 0 0 0 0 0 0 0 54,706
$3,163,178 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,163,178
FY 2024-25 Budget $2,900,073
Difference $2 631 05
Percent 9.1%
FY 2025-26 Budget $3,110,561
Difference $52,617
Percent 1.7%
8 of 9 06/01/2026
City of Ava Ion
Solid Waste Rate Study
Present Proposed Rates
Rates FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 Residential (perDU) $928.20 $969.95 $1,013.60 $1,059.20 $1,106.85 $1,156.65 Res>l0Units (perDU) 742.75 776.15 811.10 847.60 885.75 925.60 Shops / Office ($ / 1000 sqft) 1,466.75 1,532.75 1,601.70 1,673.80 1,749.10 1,827.80 Grocer ($/l000sqft) 4,400.25 4,598.25 4,805.15 5,021.40 5,247.35 5,483.50 Gathering Space ($/l000sqft) 733.35 766.35 800.85 836.90 874.55 913.90 Restaurants < 100 seats (per acct) 5,866.95 6,130.95 6,406.85 6,695.15 6,996.45 7,311.30 Restaurants > 100 seats (per acct) 11,733.80 12,261.80 12,813.60 13,390.20 13,992.75 14,622.40 Restaurants -Take Out (per acct) 2,933.45 3,065.45 3,203.40 3,347.55 3,498.20 3,655.60 Hotel Room (per room) 353.75 369.65 386.30 403.70 421.85 440.85 Grease Removal (per gallon) 4.25 4.45 4.65 4.85 5.05 5.30 9 of 9 06/01/2026

SEWER SERVICE FEES

CITY OF AVALON

SALTWATER SERVICE FEES
Customer Class Current FY27
Residential ($/Dwelling unit) $300.60 $329.15
Commercial ($/Toilet & Urinal) $300.60 $329.15
Hotel ($/Toilet & Urinal) $165.35 $181.05

SOLID WASTE SERVICE FEES
Customer Class
Residential ($/Dwelling Unit)Res> 10 Units ($/Dwelling Unit) Shops! Office ($/i,000 sq. ft.)Grocer ($/1,000 sq. ft.)Gathering Space ($/1,000 sq. ft.) Restaurants >100 seats ($/Acct.)Restaurants up to 100 seats ($/Acct.)Restaurants — Take Out ($/Acct.)Hotels ($/Room) Grease Disposal ($/Gallon)1

ADOPTED RATE INCREASES

TO SEWER, SALTWATER, AND SOLID WASTE SERVICE FEES
Customer Class Current FY27
Residential ($1 Dwelling Unit) $1,097.50 $1,201.75
Public Showers ($/Shower) 364.30 398.90
Hotels ($/Room) 603.60 660.95Laundries ($/Wash Unit) 1,481.60 1,622.35 Shops/Offices ($/Acct.) 1,097.50 1,201.75Combined Shops/Offices ($/1,000 sq. ft.) 702.35 769.05 Take-out Restaurants ($/Acct.) 1,666.00 1,824.25
Churches ($/Acct.) 2,218.75 2,429.50
Bars / Restaurants (up to 100) ($/Acct.) 3,300.00 3,613.45Bars / Restaurants (>100) ($/Acct.) 4,934.40 5,403.10 Current
$928.20
742.75
1,466.75
4,400.25
733.35
11,733.80
5,866.95
2,933.45
353.75

4.25 FY27
$946.75
757.60
1,496.10
4,488.25
748.00
11,968.50
5,984.302,992.10
360.80

4.35 (1) Restaurants must also pay a grease removal charge based on gallons removed in the prior year.

CITY OF AVALON CITY COUNCIL
MEETING DATE: June 16, 2026 AGENDA ITEM: U
ORIGINATING DEP: Finance CITY MANAGER: _______ PREPARED BY: Matthew Baker, Finance Director SUBJECT: Fiscal Year 2026-2027 Miscellaneous Fee Schedule RECOMMENDED ACTION(S): 1. Hear a presentation regarding the Miscellaneous Fee Schedule. 2. Open the Public Hearing to hear public comments. 3. Close the Public Hearing. 4.

If consensus, adopt the fee schedule as proposed.

REPORT SUMMARY: The City charges fees for miscellaneous public services, use of City facilities and equipment rental and other activities. User fees are assessed and collected for City services and programs provided by various departments. These are services that convey a benefit, grant a privilege, provide for review and enforcement of regulatory activities, enforcelaws, or are a condition of development. Under state law, cities may charge fees to recoup the direct and indirect costs related to the provision of user services.

Each year, the City reviews its fees to establish new fees, modify existing fees, and eliminate fees that are no longer required to ensure that City fees are in-line with the costs incurred to provide them.

In Fiscal Year 2025-2026, City Council approved a 3.12% increase for the majority of fees, with the exception of transit and certain recreation fees. The percentage increase was based on the consumer price index (CPI) information provided by the Bureau of Labor Statistics for Los Angeles County based on the latest available fiscal year information. Using the CPI as an average cost increase annually ensures the city does not unnecessarily burden the citizens with unusually large spikes in fees while also ensuring that the City continues to recoup costs associated with the increased costs to provide these services.

For Fiscal Year 2026-2027, Staff recommends increasing the majority of fees based on the latest available calendar year consumer price index (CPI) information provided by the Bureau of Labor Statistics for Los Angeles County which shows an increase of 3.12% based for the fiscal yearaverage for 2025, with the fees rounded to the nearest dollar.

As part of its review process, City Staff is proposing to not increase certain fees related to recreation and transit, with those services to be further subsidized with general tax revenues, with the exception of Tremont Hall, which was increased from $125 to $150 for a full-day resident private use to cover the increased maintenance and capital improvements to the building over the last fiscal year. The City also updated ambulance service rates to align with the County of Los Angeles General Public Ambulance rates effective July 1, 2026.

The City added a new Code Enforcement fee for Electric Bicycle Release Fee of $100. The existing release fees of $200 for vehicles and $25 for bicycles will remain unchanged.

GOAL ALIGNMENT: City costs will be offset by annual revenues.

FISCAL IMPACTS: Staff estimates that the new City fees, if adopted as proposed, should generate approximately $5,000 - $10,000 in new General Fund revenues, primarily from Planning-related fees, and $70,000 in additional Harbor Fund revenues, primarily from nightly moorings.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The costs of special services will not be fully funded through fees paid by the users of those services. The unfunded portion of user services would then be subsidized by general tax revenues and/or available fund balances.

FOLLOW UP ACTION: Adopt the attached resolution establishing city rates and fees for services.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS:
• Resolution
• Exhibit A — Proposed Miscellaneous Fee Schedule FY26-27 RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF AVALON SETTING FEES FOR SERVICES, FACILITIES
AND ACTIVITIES OF THE CITY OF AVALON FOR FISCAL YEAR 2026-27 WHEREAS, Pursuant to a Public Hearing held on June 16, 2026, the City Council considered the recommendations of staff regarding the appropriate fees for permits, approvals, services, activities and other user services; and
WHEREAS, state law allows cities and other local government agencies to recoup the full cost of user services; and
WHEREAS, most city fees were previously adjusted effective July 1, 2025; and WHEREAS, the Avalon Municipal Code provides that all of the fees, charges and costs listed in “Exhibit A” attached hereto and incorporated by this reference shall be set by resolution of the City Council; and
WHEREAS, the fees, charges and costs listed in “Exhibit A” have been available for public inspection for at least 10 days;
NOW, THEREFORE, the City Council of the City of Avalon, State of California, does determine, find and resolve as follows:

Section 1: The City Council hereby finds that the fees set forth in “Exhibit A” Miscellaneous Fee Schedule Fiscal Year 2026-27 represent a reasonable estimate of the cost of providing the services, activities and/or facilities for which fees are charged.Section 2: The City Council hereby adopts the fees for City services, activities and/or facilities as set forth in “Exhibit A” attached hereto and made a part hereof, which shall beeffective July 1, 2026.

PASSED, APPROVED AND ADOPTED by the City of Avalon, State of California this j6th day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:ABSTAIN:

ATTEST:

I, hereby certify, that the foregoing resolution was adopted at a regular meeting of the City Council of the City of Avalon this 16th day of June, 2026.

Ann H. Marshall, Mayor
Gabrielle Morones, City Clerk
,
-

PROPOSED MISCELLANEOUSFEE SCHEDULE
FY2026-27
I
Proposed June 16, 2026
Table of Contents
Section Department Page
I General Administration 1
II Code Enforcement 2
Ill Vehicles 4
IV Cemetery 5
V Fire 6
VI Harbor 7
VII Community Services 9
VIII Facility Rentals 10
IX Use of Manpower and Equipment 11
X Transit 12
XI Planning 13
XII Public Works 18

CITY OF AVALON
FISCAL YEAR 2026-2027

MISCELLANEOUS FEE OR SERVICE
SECTION I - GENERAL ADMINISTRATION UNIT FY26 PROPOSED
Administrative Permits
Amplified Music Application Each 292 301
Noise Ordinance Variance Each 292 301
Outdoor Dining (October - Apnl) Per Day 82 85
Outdoor Dining (May - September) Per Month 2475 2552Bicycle License? Replacement Each FREE FREELegal and Professional Fees Cost ÷ 20% Cost + 20% Late Payment Fee (unless stated elsewhere) Each 10% (mm $25) 10% (mm $Late Payment Interest on Past Due Balance Monthly 0.50% 05 Transportation Permit Each 292Transportation Permit Renewal Each 77 Encroachment Permit Each 292
Newspaper Rack Permit Each 292
Appeal to Hearing Officer Each 292Appeal to City Council Each 488 Film Location Permits
Application Fee Each 155 160
Ten or fewer employees Each 283 292
More than ten employees Each 378 390Still Photography Permit Day 132 136 Business License Program Collection Fee
TOTAL Business License Collection Fee Each 411 41
Bus. License. Collection Fee is set by resolution. Sec. 3-1.112 of the Municipal Code and is the fee for processing the Business License Tax Per SB1 186 $1 ($4 through 12131/2023) for Division of State Architect (DSA) for Certified Each 4 4 Access SpecialistShort Term Rental License Administrative Fee Each 250 250 Business License Tax is on pg 3.109 Sec. 3-1.202 of the Municipal Code and can only be changed by an ordinanceReturned Check Returned Check Each 30 30Each Returned Check after first offense Each 40 40 Notary Fees
Acknowledgements Each 15 15
Jurats per individual faking oath or affirmation and certificate Each 15 15 Depositions Each 30 30
Oath Each 7Certificate Each 7 7
Certified Copies of Power of Attorney Each 15 15Copies of Journal Entry Each 0 0.30 Other Fees
Copy Fee Each 0.25 0.25
Lamination Fee Each 2 2
Commuter Card Replacement Each 15 15
Fats, Oils and Grease (FOG) Program
Fats, Oils and Grease Permit Fee Each 434 448
Inspection Fee Each 126 130Re-Inspection Fee Each 191 197Replacement FOG Binder Each 50 50 Replacement Best Management Practice Poster Each 20 20

CITY OF AVALON
FISCAL YEAR 2026-2027
MISCELLANEOUS FEE OR SERViCE
SECTION II - CODE ENFORCEMENT UNIT FY26 PROPOSED
Parking Enforcement Fines
AMC §4-4.1002 Parking on Private Property Each 55 55AMC §4-4.1004 (a) Use of Streets for Storage of Vehicles or Trailers (72 hr) Each 5 55AMC §4-4.1004 (C) Use of Streets for Storage of Vehicles or Trailers (72 tir) -Removal Each 10 1AMC §4-4.1005 Parking Adjacent to Schools Each 5AMC §4-4.1006 Vehicle Blocking Traffic Each 5 AMC §4-4.1007 Temporary No Parking Each 5
AMC §4-4.1102 (a)(1) No Parking Each 5AMC §4-4.1102 (a)(2) Commercial Loading Only Each 5AMC §4-4.1102 (a)(3) Passenger Loading Only Each 5AMC §4-4.1102 (a)(4) Short Term Parking Only Each 5 5 AMC §4-4.1102 (a)(5) Taxi Parking Only Each 55 5AMC §4-4.1102 (a)(6) Autoetle/Motorcycle Only Parking Each 55 5AMC §4-4.1106 No Parking .tJleys Each 55 5AMC §4-4.1203 Asigted Parking - No Microcars Each 55 5 AMC §4-4.1202 Parking Space Marking Each 55 55AMC §4-4.1404 Limited Use Streets - Pedestrians Only Each 55 55 AMC §4-4.1407 Vehicle Leaking Fluid Each 100 100
AMC §4-4.1501 One-Way Street Each 55 55AMC4-4.1702CityVehictePermitRequired Each 55 55AMC §4-4.1703 Overnight Off Street Parking Required Each 55 55 AMC §4-4.1710 Vehicle Pem,it Misuse Each 600 500AMC §4—4.1716 Vehicle Marking Required Each 55 55 CVC §5204 (a) No Current Tab Diaplayed Each 55 55CVC §22500 (a) Parking in Intersection Each 55 55CVC §22500 (b) Parking in Crosswalk Each 55 55 CVC §22500 (e) Parking Btocking Driveway Each 55 55CVC §22500 (t) Parking on Sidewalk Each 55 55CVC §22500 (g) Obstructing Traffic Each 55 55CVC §22500 (h) Double Parking Each 55 55CVC §22500 (i) Blocking Wheelchair Access Each 47 47 CVC §22500 (n) No Parking within 20 Crosswalk Each 5 5
CVC §22500.1 No Parking - Fire Lane Each 10 10
CVC §22502(a) Parking 18 trom Curb Each 5 5CVC §22507.8 (a) Unauthorized Disabled Parking Each 47 47CVC §22514 Fire Hydrant Each 10 10CVC §22515 Unattended Vehicle Each 5 5 Fix It Ticket -Administrative Fee Each 1 1Late Fee (if not paid or contested within 21 days) Each 2 2 2 CITY OF AVALON
FISCAL YEAR 2026-2027

MISCELLANEOUS FEE OR SERVICE
SECTION II - CODE ENFORCEMENT UNIT FY26 PROPOSED
Noise Ordinance
Noise Violation (First Offense) [ Each 0 0 Noise Violation (Second Offense) Each 500 500Noise Violation (Third Offense) Each 1000 1000 Animal Control
Animal Control Each N/A N/AAnimal Round Up Each N/A N/AAnimal Impound . Each 75 75 Control and Round_Up_combined as_one_fee_beg._FY25Animal Boarding Daily 25 25 Previously billed as_one-time_fee_in_FY24 Dog License -Annual
Altered Each 10 10
Unaltered Each 35 35Duplicate Tag Each I
Vehicle Towing and Storage
Day Towing Each 150 150Night Towing Each 200 200Saturday, Sunday, Holiday Towing Each 200 200Bicycle Transport Each 50 50Daily Storage Daily 45 45 Alter Hours Release Each 75 75Vehicle Release Fee Each 200 200 Electric Bicycle Release Fee Each NEW 100Bicycle Release Fee Each 25 25

CITY OF AVALON
FISCAL YEAR 2026-2027

MISCELLANEOUS FEE OR SERVICE
SECTION III - VEHICLES UNIT FY26 PROPOSED
Vehicle Permits
Residential Autoette Each 50 50Residential Vehicle Each 50 50 Commercial Autoette App. (Hearing)
First Hearing Each 85 88
Autoette Renewal Each 50 50
Commercial Vehicle App.(Hearing)
First Hearing Each 85 88
Vehicle Renewal Each 50 50
Non Emergent Public Service Permit Each 50 50
Oversized Autoefte App(Heartng)
First Hearing Each 85 88
Autoette Renewal Each 50 50
Oversized Vehicle App(Hearing)
First Hearing Each 85 88
Vehicle Renewal Each 50 50
On Service Call Placard (Annual Permit) Each 25 25
Interior Vehicle Each 50 50
Duplicate Hearing Notice Each 94 97
Hearing Officer Appeal Each 293 302City Council Appeal Each 489 490Daily Temporary Commercial Permit Each 37 38Daily Temporary Residential Permit Each 2 2Monthly Temporary Residential Permit Each 36 36 Monthly Temporary Commercial Permit Each 391 403
Permit Late Fee Each 30 30
Property Release
Vehicle Release Fee Each 207 214
Bicycle Release Fee Each 5 5

CITY OF AVALON
FISCAL YEAR 2026-2027

MISCELLANEOUS FEE OR SERVICE
FY27 SECTIONIV-CEMETERY UNIT FY26 PROPOSED
Single Ground Burial
Plot Each 1,325 1366
Maintenance Each 240 247
Open/Close Grave Each 965 995
Vault Each 1064 1,097
Ground Memorial Each Cost+10% Cost*10% (including_Procensing_Fee)Marker Placement Each 221 228Ground Vase Each 22 23 Double Ground Burial
Plot-Double Deep Each 1,922 1.982Maintenance Each 487 602 Vault Each 1,064 1097
Ground Memorial Cost+ 10% Cost*1 0% Each (including Processing Fee) (w/ $800 Depositi (w/ $800 DepositiName Scrolls for Ground Memorial Each Cost+10% Cost+10% (including_Processing_Fee)Dale Scroll for Ground Memorial Each Cost+10% Cost+10% (including_Processing_Fee) Marker Placement Each 221 228
Burial of Cremated Remains
1/2 Plot Each 662 683
Maintenance-LIFETIME Each 126 130
Open/Close Grave Each 297 306
Ground Memorial Cost+ 10% Cost+1 0% Each (including Processing Fee) (w! $800 Deposit) (w/ $800 Deposit) Marker Placemeni Each 221 228
Cremated Remains in Niche Wall
Niche Each 723 746
Placement of Remains in Niche Each 92 95Small Niche Vase Each Cost Cost Single Niche Plaque Each 10% of Cost 10% of Cost (including_Processing_Fee) Double Niche Plaque Each 10% of Cost 10% of Cost (including_Processing_Fee) Installation of Plaque Each 86 89Scroll for Companion Plaque Each 10% of Cost 10% of Cost (including_Processing_Fee) Memorial for Cremated (Scattered) Remains
Memortat Wall Reservation Each 238 245Memorial Wall Plaque Each Cost+10% Cost+10% (including_Processing_Fee)Installation of Plaque Each 86 89 Small Burial Vault Each 204 210

CITY OF AVALON
FISCAL YEAR 2026-2027

MISCELLANEOUS FEE OR SERVICE
SECTION V- FIRE UNIT FY26 PROPOSED
*per LA County Emergency Medical Services Agency Rate Schedule Ambulance Service (ALS) Non Emergency Each 3,184 3,336
Ambulance Service (ALS) Emergency Each 3,408 3,572
Ambulance Service (ELS) Non Emergency Each 2121 2,222Ambulance Service (ELS) Emergency Each 2276 2,385 Mileage Rate Per Mile 30 31Oxygen Service Each 120 127
Copy of Report Fire/Ambulance Each 45 45
False Alarm
1st None None
2nd 48 493rd 192 198
Weed Abatement
Weed Abatement (including Processing Fee) Each Cost + 20%I Cost + 20% Plan Check
Hoods Per Plan Check 664 685
Sprinkler Per Plan Check 664 685
Alarm Per Plan Check 664 685
Fire Per Plan Check 329 339Occupancy Calculalion Per Plan Check 167 172 Hydrant Flow Check Per Plan Check 155 160
Automatic Dialer Alarm System
Signup Each 238 245
Renewal Each 345 356
Hazardous Material Clean Up
Hazardous Material Clean Up Each Cost + 20% Cost + 20% (including_Procensing_Fee) Hazardous Inspections Each 164 169Low Each 164 169
Ordinary Each 164 169
High Each 322 332
Special Each 322 332Reinspection Each 322 332
InspectIon Report SubmIssion Fee
Inspection Report Submission Fee Per Submillal 20 20Late Fee for Submission after 30 Days Per Submittal 10 10Late Fee for Submission after 60 Days Per Submittal 15 15 Late Fee for Submission after 90 Days Per Submiltal 20 20 6 CITY OF AVALON
FISCAL YEAR 2026-2027

MISCELLANEOUS FEE OR SERVICE
SECTION Vi - HARBOR UNIT FY26 PROPOSEDCredit Card Processing Fee Each 3.99% 3.99%Hoist Each 36 37Harbor Spills (incuding Processing Fee) Each Cost + 20% Cost + 20% HarborDischargeAppeal Each 515 531
Towing Fee Each 95 98Waterside Application Fee Each 306 316Waterside Application Deposit 1 St Installment Due 411 500 500
2nd Installment Due 8/1 500 500
Haul Out Fee 84 87
Storage Fee - Per Week Per week 36 37Mooring Service Charge (Mooring Use - Nightly Rate)Dinghy Dock Daily Free Free 0’ and under Daily 49 51
to 39 Daily 54 56
0’ to 49’ Daily 67 690’ to 59 Daily 82 850’ to 69 Daily 108 11 10’ to 79’ Daily 134 1380’ to 89 Daily 148 153 to 99 Daily 177 183
0’ or more Daily 200 206
Special SpringlFall rate: Pay 4 nights
Spring - Palm Sunday thru June 15th Nights consecutive and get the Pay 4 nIghts consecutive and get the next 3 fret. Fall - Sept 15th thm Oct 14th next 3 free Special Winter rate: Ni hts Pay 2 nights Pay 2 nights consecutive October 15th thru Palm Sunday consecutive and getthe and geithe next 5 fret.

Mooring Service Charge (Mooring Use 4 Hour Rate = 112 of Daily Rate) 30 and under Each 25 2631’1o39’ Each 27 28
40’ to 49’ Each 34 35
50’ to 59 Each 41 4360’ to 69’ Each 54 56
70’ to 79 Each 67 6980’ to 89 Each 74 7790’ to 99 Each 89 92 100’ or more Each 100 103
7 CITY OF AVALON
FISCAL YEAR 2026-2027

MISCELLANEOUS FEE OR SERVICE
FY27 SECTION VI-HARBOR UNIT FY26 PROPOSED
Annual Lease Fees
30 Annually 1,848 1906
40’ & 45’ Annually 2,472 2,549
50’ Annually 3,706 3,82260 and above Annually 4,448 4,587 Annual Mooring Permit (costlftlmonth) Annually 1.17 121 Plus maintenance, chain and taxes
Water Dock Coin Operation for Fresh Waler Cost Cost
Harbor Use Fees and WharfageHarbor Businesses 7% gross receipts 7% gross receiptsFishing Tournament, Per Boat (Charitable Exemption) 4% gross receipts 4% gross receipts Per Passenger Vriharfage -Cross Channel Carrier Arrivals 3.00 3.00 Each Way Per Passenger Miarfage - Cross Channel Carrier Departures 5.00 5.00 Each Way IM,arfage - Cruise Ships (100% of landed passengers) Per Passenger 7.50 7.50 Per Passenger V5barfage - Hospital Measure H 2.00 2.00 Arriaing Shoreboat Fee Per Passenger 7.00 7.00
8 CITY OF AVALON
FISCAL YEAR 2026-2027

MISCELLANEOUS FEE OR SERVICE
SECTION VII - COMMUNITY SERVICES FY26 PROPOSED
Sports Programs
T-BaII Each 35 36
Basketbafi (Youth) Each 35 35Flag Football (Youth) Each 35 35 Swimming Lessons (Youth) Each 8/class 8/classSoccer (Youth) Each 35 35Day Camp (Weekly) Summer 2024 Each 80 80 Day Camp (Daily) Summer 2024 Each 20 20Baskethail (adult) Each 35 35 Flag Football (Adult) Each 35 35
Volleyball (Adult) Each 35 35
Soccer (Adult) Each 35 35
Recreation Registration Late Fee Each COST + 20% COST * 20% Festival Booth
Non-Profit Orgnization (without food preperalion) Each 40 40Non-Profit Orgnization (with food preperation) Each 60 60 All Other Each 90 90
Kayak and Stand Up Board Rack Rental
Six Month Each 100 100
Annual Each 170 170
Permit Applications
Street Performer Each 35 36
Sidewalk Vendor Each 35 35Special Events -Commercial Each 100 100 Special Events - Not-for-profit, Government agency Each 50 50 Advertising (Vons Digital SIgn Board)
Two-week Post Each 15 15Annual Post Each 75 75
Other Recreation Programs
Contract Recreational Programs Contracted Rate ] Contracted Rate Other Equipment RentalField lighting (two hoar minimum) Hourly 40 40Chair Rental (mm. 25 chairs) Each 2 2 Tab? e Rental (mm. 5 tab? as) Each 10 10
Chair and Table Refundable Deposit Each 250 250
9 CITYOFAVALON
FISCAL YEAR 2026-2027

MISCELLANEOUS FEE OR SERVICE
SECTION Viii - CITY FACILITY RENTALSGroup Designations for Facilty Rentals:

Tiered rates to provide discount rates for resident and non-profit organizations. - Group 1: City of Avalon sponsored or co-sponsored event or program Group 2: Resident private use; not-for-profit organizations; governmental agencies Group 3: Non-resident private use; commercial useFull Day Four (4) hours or moreHalf Day Up to four (4) hours Insurance RequirementsThe City requires facility renters to obtain liability insurance naming the City of Avalon as additional insured as the propertyownerilessor. The renter must obtain this on their own. The City of Avalon will assist in this process by providing a step-by-step guideon how to obtain the required insurance, which will include a list of affordable insurance agencies meeting our requirements.Facilities Damage & Cleaning Deposit Council Chambers 250City Hall Conference Room 250
Tremont Hall 300Joe Machedo Field 500
FY27
Use of Facilities Group I Group 2 Group 3
City Hall Council Chambers
Full Day 0 75 300Half Day 0 40 160
CIty Hall Conference Room
Full Day 0 75 300HatfDay 0 40 160
City Park, Knabe Park, Kids Park
Full Day I 01 301 85
Basketball Court, Volleyball Court
Two (2) Hour Maximum I °I 301 85
Skate Park
Full Day I DI 301 85
Wrigley Stage
Full Day I oI 301 85
Beach Permit
Four (4) Hour Maximum CI 1401 200
Street Banners
General (Six Weeks) of 501 200
Tremont Halt
Full Day 0 150 325
Halt Day 0 100 200
Joe Machado Field
Full Day 0 250 350Half Day 0 140 200
Resident Recrealion League 0 50 50
Joe Machado Field (Courtyard Only)
Full Day 0 125 175Half Day 0 70 125
10 CITY OF AVALON
FISCAL YEAR 2026-2027

MISCELLANEOUS FEE OR SERVICE
SECTION IX - USE OF LABOR AND EQUIPMENT UNIT FY26 PROPOSED rho rates are used by staff to create a composite rate for a specific service such as sewer lateral repair. The City charges the same equipment rental rates thatare specified in the California Slate Transportation Agency (Caltrans). htlps://dol.ca.gov/programs/conslruclion/equipment-renlal-rates-and-tabor-surctiarge fl cases where a piece of equipment is not in the Calirans book, the rate specified in the User Fee Schedule will be used. Equipment is not available for rent or uersonal use. These charges are modified for Community Groups and are shown below.lubIic Safety Firefighter/Engineer Hourly 84 87
Firefighter/Engineer -Time over eight (8) hours in a day Hourly 125 129 Harbor Patrol Officer** Hourly 80 82
Sheriff Deputy Hourly Cost+20% Cost+20%
Public Works
Maintenance Superintendent Hourly 75 77Lead Worker Hourly 61 63Maintenance Worker III Hourly 52 54Maintenance Worker II Hourly 45 46 Maintenance Worker I Hourly 38 39
Other Personnel Hourly 1.5 x hourly rate 1.5 x hourly rateOvertime Hourly 1.5 x hourly rate 1.5 x hourly rateCall Out (2 Hour Minimum) Hourly 1.5 x hourly rate 1.5 x hourly rate Equipment
Sidewalk Street Sweeper Machine Hourly 49 51
Waste Water Contracted Worker Hourly Cosl+20% Cost+20%
Ambulance Hourly 37 38
Dump Truck Hourly 37 38
Fire Engine Hourly 51 53Harbor Patrol Boat Hourly 37 38Pick-Up Truck Hourly 34 35Rescue Boat Hourly 51 53Street Sweeper / Trash Truck Hourly 37 38 Other Equipment Hourly 36 37
Sewer Maintenance Program (Scheduled and Emergency)Four (4) hour min/mums requ/red for wot* VaclorTruck Hourly 144 148
Robotic CCTV Hourly 85 88
Video Pipe Camera Hourly 37 38
City Pick Up Truck Hourly 35 36
Towable Pressure Washer; Jeller Hourly 33 34
Ditch Vdlch Hourly 49 51
Waste Waler Disposal Gallon 0.25 0.25
Pubtic safety costs for events that contribule more than 40% of net proceeds, but not less than $5,000, to local charities shall be waived. 11 CITY OF AVALON
FISCAL YEAR 2026-2027

MISCELLANEOUS FEE OR SERVICE
SECTION X - AVALON TRANSIT UNIT FY26 PROPOSEDPOINT TO POINT TRANSIT General Public Per Passenger Per Ride 2 2Group Passenger Rate Per Ride (Three or More Passengers) NFA 6

DIGITAL SIGNAGE BOARDS
Direclory Listing
Directory Update
Special Events Notice - Advertisements (Commerciat)
CHARTER Coat + 20% Cost * 20%
12 CITY OF AVALON
FISCAL YEAR 2026-2027

MISCELLANEOUS FEE OR SERVICE
SECTION XI - PLANNING UNIT FY26 PROPOSED
Public Noticing Each 292 301
Tentative Parcel Map Each COST + 20% COST + 20%Tentative Tract Map Each COST + 20% COST + 20% Final Tract Map
Final Tract Map Deposit Each 4888 5040Final Tract Map - Engineer Review Each COST + 20% COST + 20% (including Processing Fee)Final Parcel Map Deposit Each 4,888 5,040Final Parcel Map Each COST + 20% COST + 20% (including Processing Fee)Final Parcel Map -Engineer Review Each COST + 20% COST + 20% (including Processing Fee) Lot Line Adjustment Each COST + 20% COST + 20%
Conditional Use Permit (CUP)
Condo Conversion Each 2,930 3,021Bonus Density Each 2,930 3,021 All Others Each 1,952 2,013Transient Rental License
(CUP/$2013, CDP/$1277 Public Nolice/$301, CEQA/$547) Each 3,760 4,138 Home Occupancy Review Each 197 203
Variance
Less than 25% Each 647 667Greater than 25% Each 1,293 1,333 Coastal Development Permit (CDP) Each 1,238 1,277
Zone
Zone Change Each 4,881 5,033Zone Change+ Local Coastal Permit (LCP) Each 9,759 10,063Zoning Confirmation letter Each 304 313 Sign
Temporary Sign Permit Each 89 89
Business Corner Sign Permit Each 351 362Sign Permit Each 304 313 Sign Variance Each 488 503
Fees for Additional Processing Needed:

General Plan Amendment Each 2,442 2,518General Plan Deposit Each 13,967 14,402General Plan Consultant Preparation Each COST+20% COST+20% (including_Processing_Fee)General Plan City Attorney Review Each COST+20% COST+20% (including_Processing_Fee) Appeal to Planning Commission
Appeal to Planning Commission Fee Each 1007
Development Agreement
Development Agreement Deposit Each 13,967 14,402Development Agreement Attorney Review Each COST+20% COST+20% (including Processing Fee) 13 CITY OF AVALON
FISCAL YEAR 2026-2027

MISCELLANEOUS FEE OR SERVICE
SECTION XI - PLANNING (CONTINUED) UNIT FY26 PROPOSED
CEQA
Categorical Exemption Each 547 564
Mitigation Negative Declaration Each 973 1003
Declaration Deposit Each 3491 3600Consultant Preparation (including Processing Fee) Each COST+20% COST+20% Attomey Review (including Processing Fee) Each COST+20% COST+20% Attomey Preparing/Filing (including Processing Fee) Each COST+20% COST+20% Mitigation Monitoring (including Processing Fee) Each HOURLY COST+20% HOURLY COST+20% EIR
EIR Deposit Each 13560 13.976Consultant (including Processing Fee) Each COST+20% COST+20% Attomey Review (including Processing Fee) Each COST+20% COST+20%Attorney Preparing/Filing (including Processing Fee) Each COST+20% COST+20%Attorney Review/ Approval - CC&Rs Each COST+20% COST+20% (including_Processing_Fee) Other Permits
Extension-6 Month Each 19 196Compliance Certificate Each 44 46 Administrative Permit Each 48 49Accessory Dwelling Unit Permit Each 48 49 Preliminary Review Fee Each 32 33
Temporary Use Permit (NEW- FY21) Each 40 41
Site Plan <25% of building Each 1,29 133Site Plan > 25% Each 2,586 2,66 Building Permits
Issuance Fee Each 47 4
Valuation $0 to $700 Each 63 6Valuation $700 to $25,000 Each 95 9 Pius: ror each odditunni $1,000 or fraction above $1,000 Each 26 27 Valuation $25,001 to $50,000 Each 68 70
Pius: ror each addttonai $1,000 or fraction abooe $25000 Each 20 2 Valuation $50,001 to $100000 Each 1168 120
Pius: for each edditiunai $1,000 or rrocfion above $50,000 Each 14 1 Valuation $100,001 to $250,000 Each 1,878 1,937
Pius for each addctonsi $1,000 or fraction above $100,000 Each 7 7 Valuation $250,001 to $500,000 Each 2,88 2,971
Pins: ror eauh add5unai $1,000 or fraction above $250,000 Each 7 7 Valuation $500,001 and over Each 4,380 4,517
Pius: ior each eddiuonai $1,000 or Iroction above $500,000 Each 7 7 Work within Archeological Sensitive Areas (ASA) - See Archeological Monitoring Fees (Page 13) Strong Motion Instrumentation & Seismic Mapping (SMIP) Fee Based on construction valuation + 5% Collected on behalf of the Dept. of Conseivation Administration Fee to City California Building Standards & Commission (CBSC) Fee Based on construction valuation + 10% Collected on behalf of Calif Building Standards Commission Administration Fee to City 14 CITY OF AVALON
FISCAL YEAR 2026-2027

MISCELLANEOUS FEE OR SERVICE
SECTION XI - PLANNING (CONTINUED) UNIT FY26 PROPOSED
Green Building CodelPlan Check Fees I Included in regular plan Included in regular plan check. check.

Instrumentation Program Surcharge
Residential Each 10% 10%Other Each 20% 20%Minimum Each 5% 5%Energy Conservation Surcharge Each 10% 10%Disabled Access Surcharge Each 5% 5%Combined BldglPlumbinglEleclricallMechanical (md. Pools> Each 1.5 X Building Permit 1.5 X Building Permi Plan Check 16 16
Plan Check Each 1.5 X Building Permit 1.5 X Building Permi Standard Plans Each 118 122Minimum Each 221 228Duplicate plan (percentage of plan check fee) Each 70% 70%Extension Fee (percentage of plan check fee> Each 25% 25% Grading Permit Fees
Issuance Fee Each 49 51
1—50 cubic yards Each 236 243
51—1,000 cubic yards Each 352 363
1,001—10,000 cubicyards Each 1,400 1,444
for oach addiliosal 100 oo.yds. orna5on above 1,000 Each 99 102 10,001—100,000 cubic yards Each 231 238
for oath addIiooal 100 vo yds. or basSos above 10,000 Each 63 65 101 .000 or more Each 8,026 8,276
for cash odd0oo& 100 so yds or fracson aboVe 100.000 Each 158 163 See Archeological Monitoring Fees for wol* within Archeological Sensitive Areas (ASA) Grading Plan Check Fees
Grading Plan Check (including Processing Fee) Each COST+20% COST+20%Deposit [ 2,012 2,075 Landscape Permit Fees 2,500—7500 square feel Each 277 2867,501—15,000 square feet Each 414 427 15,000—30,000 square feel Each 830 856
30,001 square feet tol acre Each 1014 1046
Landscape Plan Check Fee
Landscape Plan Check (including Processing Fee) Each COST-’-20% COST+20%Deposit 1 ,i2 1384 15 CITY OF AVALON
FISCAL YEAR 2026-2027

MISCELLANEOUS FEE OR SERVICE
SECTION XI - PLANNING (CONTINUED) UNIT FY26 PROPOSED
Additional Fees
Work Commencing before Permit issuance Per CBC 109.4 Each 2x Permit Fee 2x Permit Fee Minimum Fee for violation Each Mm. $100 Mm. $100
Issuance for items below Each 49 51
Miscellaneous site inspection Each 615 634
Occupancy Inspection (Change of Use)
Residential Each 321[
Otherless than 5,000 square feet Each 785 8095,001—10,000 square feet Each 945 974 10,001—100,000 square feet Each 1.573 1.622
above 100,001 square feet Each 2,382 2,456
Substandard Notice Correction Inspection Each 556 573Demolition Permit Fee Each 239 246 Demolition Inspection-Asbestos/Lead Each 356 367Group A, Division 4 Structures Each 321 331 Amusement Park Inspections
First structure Each 239 246Each additional structure Each 38 39 Building RelocatIon
up to 2,500 square feet Each 635 655
2,501 square feet and above Each 1,270 1,310Trailer Coach Inspections Each 236 243 Inspection Outside Business Hours, per hour Each 143 147Other inspection, per hour Each 143 147 Barriers for Pools Each 135 139Permit Copy Each 3 3
Public Record Research (per hour) Each 45 46Concept Review Approval Each 189 195Concrete I Material Testing (NEW FY21) Each Cost * 20% Cost + 20% Geotechnical Site Review
Engineering geology report Each 615 634Geotechnical engineering report Each 615 634 Combination Report Each 859 886
Review to determine need for report Each 615 634
Coastal engineering reports Each 564 582Parking occupant load calculation Each 159 164Reproduction of microfilmed plans Each 49 51 Assignment of house numbers Each 78 80
Hourly Rate to review changes Each 159 164Hourly Rate to review additional changes Each 159 164 Certificate of OccupancyCertificate of Occupancy Issuance Each 147 1 Temp. Certificate of Occupancy (TCO) (90 Days) Each 222 2TCO Extension (30 days) Each 147 1 Processing 45-day notice Each 643 6Processing Notice of Viotation Each 1,065 1,0Notice of Compliance (Rescission of Notice of Violation) Each 439 4Noncompliance Fee Each 295 3 16 CITY OF AVALON
FISCAL YEAR 2026-2027

MISCELLANEOUS FEE OR SERVICE
SECTION XI - PLANNING (CONTINUED) UNIT FY26 PROPOSEDNoncompliance Fee R-Soccupancies Each 151 156
All other occupancies Each 300 309
Board of Appeals fee Each 639 659
Alternate material fee Each 326 336Additional hourly rate Per hour 162 167 Electrical Permit
Issuance Fee Each I 491 51
Services, Switchboards
Solar Systems Each I 4501 450
Investigation Fee - Work without Permit
R-3 occupancies Each 251 259
Alt other occupancies Each 501 517
Noncompliance Fee
One and two unit buildings Each 151 156
For other occupancies Each 300 309
Saltwater ConnectlonlDtsconnection Fees
Connection Each 151 156Disconnection Each 49 51
Sewer Connection Fees
Residential Per dwelling unit 1,170 1206Public Shower Per shower 392 404Hotels Per room 585 603 Take-Out Restaurant Each 1755 1,810
Churches Each 2343 2,416
Bar/Restaurant (less than 100 seats) Each 3.511 3,620Bar/Restaurant (more than 100 seats) Each 5,265 5,429 See Section V. Fire for fire-related plan check fees
17 CITY OF AVALON
FISCAL YEAR 2026-2027

MISCELLANEOUS FEE OR SERVICE
SECTION XII - PUBLIC WORKS UNIT FY26 PROPOSED
Spilled Load (including Processing Fee) Each COST+20l COST+20%Nuisance Abatement (including Processing Fee) Each COST+20°/ COST+20%Street Sweeping (including Processing Fee) Each COST+20% COST+20%Landslide Clean-up (including Processing Fee) Each COST+20% COST+20%Pot Hole Repair (including Processing Foe) Each COST+20% COST+20% Waste Water Treatment Facility Dump Fee (minimum) Each COST COST Per Gallon (after 600-gallon minimum fee) Gallon 1 1
Public Works Pennits
Excavation Permit Each 293 302
Excavation Deposit (mm $50) - Issuance Fee SQUARE FT 48 49Excavation Administration Surcharge (non-refundable) Per Deposit 20% of Deposi 20% of DepositExcavation Penalty (including Processing Fee) Each COST+20’ COST+20% Minor/Temporary Encroachment Permit Each 293 302Major Encroachment Permit Each 2,000 2.000 Obstruction Permit (Daily) Each 95 98Obstruction Permit (Monthly) Each 293 302 - Curb Cut Application Each 293 302 Abandond Vehicle -full cost appru $1 .000/vehicle Each COST COST Archeological Monitoring Fees - Work withIn Archeological Sensitive Areas (ASA) Issuance Fee Each 49 51
Excavation Permit: Each 293 302Deposit Deposit 4,695 4,841 Archeological Monitoring Services (mc. Processing Fee) Each COST+20% COST÷20% Deposit for 10 or more Anticipated Excavations a Year Deposit 9,390 9683(May or may not be in an ASA) - -18

CITY OF AVALON CITY COUNCIL
MEETING DATE: June 16, 2026 AGENDA ITEM: _________ ORIGINATING DEP: Administration CITY MANAGER: wi} PREPARED BY: Jocelyn Francis, Assistant City Manager
SUBJECT: Catalina Food Tours Transportation Permit ApplicationRECOMMENDED ACTION: 1. Receive presentation. 2. Discuss. 3. If consensus is met, approve the Transportation Permit for Catalina Food Tours to be added to the existing Residential Vehicle permit to conduct tours with stated conditions.

REPORT SUMMARY: On April 26, 2026 the City received a transportation permit application from Ms. Erin Eubank to conduct guided food tours utilizing one existing Residential Vehicle permit assigned to business partner Simon Alvarez. The existing company is a walking tour and would like to add a transportation component for local restaurants further out from town center.The proposed Residential Vehicle permit would be used to conduct in-town tours and tours into the interior as outlined in the map attached between the hours of 9:00 am and 7:00 pm with the primary pick-up and drop-off at the intersection of Metropole and Crescent in the PassengerLoading Zone. Additional drop-off locations include Descanso Beach Club, Buffalo Nickel, Avalon Smokehouse, Sand Trap, and Airport in the Sky (pending approval).

Avalon Municipal Code Section (AMC) §5-14.04 requires a hearing before the City Council to determine whether a transportation permit should be approved ensuring:
• The applicant has presented facts demonstrating a necessity for the requested vehicle(s).• The requested vehicle(s) is appropriate for the intended use and necessary, for the proper functioning of the applicant’s enterprise.
• The requested vehicle(s) will not have a deleterious impact on traffic congestion, traffic safety, noise, or air pollution.
• In view of the size and nature of the streets of the City and the character of the City itself, the requested vehicle(s) will not have a deleterious impact on the public health, safety, and welfare.
• There is no more suitable alternative vehicle than the vehicle(s) requested by the applicant that can satisfy its requirements.

If approved by the City Council, staff recommends the applicant must additionally meet the following conditions:
• Agree to limit primary pick-up and drop-off locations to the passenger loading zone of Crescent Avenue/Metropole Avenue.
• Agree to limit in-town secondary pick-up and drop-off locations to include Descanso Beach Club, Buffalo Nickel, Avalon Smokehouse, and Sand Trap. • Agree to limit transportation hours to 9:00am to 7:00pm, seven days a week.• Agree to limit vehicle parking to a maximum of 5 minutes to allow for the active loading/unloading of passengers, never leaving the vehicle unattended. • Maintain an active City of Avalon business license.
• Maintain current City of Avalon Residential Vehicle permit.

Maintain current on City of Avalon Admissions Tax payments. • Provide proof of insurance per the Avalon Municipal Code.

Ensure approval from any private entities for private road use if applicable. • Failure to fully comply with any of the foregoing conditions shall result in the revocation of the applicant’s transportation permit.

Renewals to be evaluated by the Vehicle Clerk to ensure compliance every three years.

FISCAL IMPACTS: None.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A
FOLLOW UP ACTION: Implement City Council direction.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.ATTACHMENTS:

1. Transportation Application

2. Route Map
Transportation Permit
04/26/2026 10:06 PM (PDT)

CITY OF AVALON
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Transportation Permit
Business Name Catalina Food Tours
Applicant First NameApplicant Last Name
ErinEubank
Mailing Address
CftyState
Zip Code
P0 Box 306
Avalon
CA90704
Phone
Email
310-968-1243
[email protected]
Business Physical Address
Cfty
State
Zip Code
18 Canyon Terrace Rd.

Avalon
CA90704
Is the business a corporation? No
Nature of Business
Describe the nature of business(Explain extent, character andmanner in which proposed operation is to be conducted)
Vehicles to be used
Vehicle Year
We are currently a walking food tour. Wed like to expand our operations to outside the downtown areas to external parts of town. We’d like to considerventuring into the interior if the Conservancy is amicable as well. Simon Alvarez, my partner, has a personal full-size vehicle sticker that we’d like to use for thisadditional venture. **FOR THE VEHICLE LISTED BELOW: WE HAVEN’T

PURCHASED THE VEHICLE YET BUTARE APPROVED FOR THE LENGTH OF UP TO 215” IN LENGTH. I LISTED THE TYPE OF VEHICLE WE ARE LIKELY TO GET.

Submission ID: l9ebdb28-3894-4d11-bdd6-a39fOlOd8clc Page 1/3 2015
Vehicle Model
TOYOTA
Body TypeSEQUOIA
Vehicle License Number
TBD
Vehicle Capacity
8 Is this vehicle currently permitted in Avalon?
Yes, Residential Vehicle (Blue Sticker)
Proposed Dates/Hours of
Operation
Describe Routes
We could run tours daily, during the day. We are also exploring nighttime options since people are always requesting more nighttime activities.

Potential in Avalon Route could include - Pick up outside of BluewaterAvalon, venture out to Descanso, up to the Sand Trap, either a stop to view the horse stables or up to Avalon Smokehouse up the canyon, over to Buffalo Nickel, goover Mt. Ada for a scenic view and back into town to drop off outside of Bluewater/FIx Beirgarten. Potential Interior Route could include pick up outside ofBluewaterAvalon go up to the Airport and back or include doing the loop andreturning for drop outside BluewaterAvalon. Note: Any potential routes in the interior are subject to Conservancy permitting & approval. We’d like to beavailable to pick up outside of hotels or vacation rentals. rEL
Route Map I
I’
Submission ID: l9ebdb28-3894-4d11-bdd6-a39fOlOdBclc Page 2/3 Proposed Points of Discharge and Pick-up of Passengers
Proposed Pick-up/Drop-off
Out front of BluewaterAvalon & US Bank near the old Taxi stand.

How will you remit payment? Online via eCheck
(Please note a 3% convenience
fee is assessed on all credit card
payments)
Total Non-Refundable Application Fee Due: $272.00
By affixing your signature in the box below, you agree that such signature will be the electronic representation of your signature to be valid and binding upon you for all purposes when you (or your agent) affix below, including on legallybinding contracts, just the same as a hand-written signature.

Signature of Applicant
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CITY OF AVALON CITY COUNCIL
MEETING DATE: June 16, 2026 AGENDA ITEM: I 2-
ORIGINATING DEP: Administration CITY MANAGER: f,kfJ
PREPARED BY: Jocelyn Francis, Assistant City Manager
SUBJECT: Roger’s Guided Tours Transportation Permit Application RECOMMENDED ACTION: 1. Receive presentation. 2. Discuss. 3. If consensus is met, approve the Transportation Permit for Roger’s Guided Tours utilizing one existing Residential Autoette permit to conduct tours with stated conditions.

REPORT SUMMARY: On March 31, 2026 the City received a transportation permit application from Mr. Roger Cadman to conduct guided tours utilizing one existing Residential Autoette permit.

The residential Autoette would be used to conduct in-town tours as outlined in the map attached between the hours of 8:00 am and 8:00 pm with pick-up and drop-off at the intersection of Metropole and Crescent in the Passenger Loading Zone.

I Time I Capacit I Type I Type Year I Make Type Length Permit I Tour 023 Yamaha Cart 130” Autoette 8PM In-Town 6 I Residential I 8AMAvalon Municipal Code Section (AMC) §5-14.04 requires a hearing before the City Council to determine whether a transportation permit should be approved ensuring:
• The applicant has presented facts demonstrating a necessity for the requested vehicle(s).• The requested vehicle(s) is appropriate for the intended use and necessary, for the proper functioning of the applicant’s enterprise.
• The requested vehicle(s) will not have a deleterious impact on traffic congestion, traffic safety, noise, or air pollution.
• In view of the size and nature of the streets of the City and the character of the City itself, the requested vehicle(s) will not have a deleterious impact on the public health, safety, and welfare.
• There is no more suitable alternative vehicle than the vehicle(s) requested by the applicant that can satisfy its requirements.

If approved by the City Council, staff recommends the applicant must additionally meet the following conditions:
• Agree to limit pick-up and drop-off locations to the passenger loading zone of Crescent Avenue/Metropole Avenue.
• Agree to limit transportation hours to 8:00am to 8:00pm, seven days a week. • Agree to limit vehicle parking to a maximum of 5 minutes to allow for the active loading/unloading of passengers, never leaving the vehicle unattended. • Maintain an active City of Avalon business license.• Maintain current City of Avalon Residential Autoette vehicle permit. • Maintain current on City of Avalon Admissions Tax payments.• Provide proof of insurance per the Avalon Municipal Code.• Ensure approval from any private entities for private road use if applicable.• Failure to fully comply with any of the foregoing conditions shall result in the revocation of the applicant’s transportation permit.

Renewals to be evaluated by the Vehicle Clerk to ensure compliance every three years.

FISCAL IMPACTS: None.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A
FOLLOW UP ACTION: Implement City Council direction.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS:

1. Transportation Application

2. Route Map
Transportation Permit ______ 03/31/2026 4:28 PM (PDT)
Transportation Permit
Business Name Rogers Guided Tours
Applicant First Name Roger
Applicant Last Name Cadman
Mailing Address P0 Box 1445
City Avalon
State California
Zip Code 90704
Phone 310-422-8071Email [email protected]
Business Physical Address 304 Descanso Ave
City AvalonState Ca
Zip Code 90704
Is the business a corporation? No
Nature of Business
Describe the nature of business Guided golf cart tour. Roger will pick up people and Show them around town. (Explain extent, character and
manner in which proposed
operation is to be conducted)
Vehicles to be used
Vehicle Year
2023
Vehide Model
Submission ID: d2eOe2d3-09b5-4cf7-af44-l442blel3aed Page 1/3 Yamaha 2014
Body TypeGC
Vehicle License Number
7CBM409
Vehicle Capacity
6 Is this vehicle currently permitted in Avalon?
Yes, Residential Autoette
Vehicle Year
2023
Vehicle Model
Yamaha 2014
Body TypeGC
Vehicle License Number
7CBM409
Vehicle Capacity
6 Is this vehicle currently permitted in Avalon?
Yes, Residential Autoette
Proposed Dates/Hours of 8a.m.-8p.m. ,7 days a week
Operation
Describe Routes Town to Pebbly Beach to Wrigley Road to town again, at the mole or residence town to Avalon Canyon Rd to Botanical Garden to town again, at the mole or residence,
Town to casino and back again.

Proposed Points of Discharge and Pick-up of Passengers
Proposed Pick-up/Drop-off
Passenger Loading Zone at Crescent/Metropole.

Proposed Pick-up/Drop-off
resident
Submission ID: d2eOe2d3-09b5-4cf7-af44-l442blel3aed Page 2/3 How will you remit payment? Cash/Check by Mail or In Person at City Hall (Please note a 3% convenience
fee is assessed on all credit card
payments)
...Make Check Payable to City of Avalon....

Payment may be made by mail at:P0 Box 707
Avalon, CA 90704
Payment may be in person at:
410 Avalon Canyon RoadAvalon, CA 90704
Please note, application will not be processed until the application fee is paid.By affixing your signature in the box below, you agree that such signature will be the electronic representation of your signature to be valid and binding upon you for all purposes when you (or your agent) affix below, including on legally binding contracts, just the same as a hand-written signature.

Signature of Applicant
Submission ID: d2eOe2d3-09b5-4c17-af44-l442blel3aed Page 3/3 I
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CITY OF AVALON CITY COUNCIL
MEETING DATE: June 16, 2026 AGENDA ITEM: I 3
ORIGINATING DEP: Administration CITY MANAGER: ________ PREPARED BY: David Maistros, City Manager Devin Hart, Senior Management Analyst
SUBJECT: Adult-Use Cannabis DiscussionRECOMMENDED ACTION(S): Provide direction to Staff regarding City Council’s desire topursue legalization of adult-use cannabis in Avalon.REPORT SUMMARY: This item appears on the agenda at the request of a member of the City Council. Over the last several years cannabis has appeared on Council’s agenda for discussion or action on seven occasions.

August 6, 2024: City Council Meeting. Council affirms City Manager’s decision to terminate the existing, but inactive, medical cannabis delivery permit. Discussion held regarding expanding cannabis regulations and accepting applications to re-issue the medical delivery permit.September 17, 2024: City Council Meeting. City Staff provided a feasibility analysis regarding a store front adult-use facHity, the community’s desire/interest in the facility, and projected economic and other impactsJanuary 21, 2025: City Council Meeting. Council again discusses options for cannabis in Avalon and authorizes staff to resolicit applications for the issuance of the medical cannabis delivery permit.

May 6, 2025: City Council conducts a Public Hearing and adopts a Resolution declaring an intent to award the medical cannabis delivery permit to Catalina Cannabis, LLC.

August 5, 2025: City Council adopted Resolution No. 25-27 issuing a commercial cannabis permit to Catalina Cannabis, [[C for Medical Delivery Business. (On August 19, 2025, City Staff was notified Catalina Cannabis, LLC changed to ERBA Catalina, a California C-corporation.)October 21, 2025: City Council directed City Staff to not pursue legalization of adult use/recreational cannabis in Avalon.

April 21, 2026: City Council heard a presentation from ERBA Catalina — the current medical cannabis delivery business permit holder — regarding adult-use/recreational cannabis. Representatives of ERBA requested Council’s consideration to amend the current medical delivery ordinance to allow them to also deliver adult-use recreational cannabis. Because the electorate has never approved adult-use recreational deliveryand therefore there is no provision for a tax, ERBA proposed a development agreement with the City offering payment of five percent (5%) of their gross receipts. City Council directed City Staff to bring an item back for further discussion and consideration.

Development of Local Cannabis Regulations and Public Interest in Adult-Use Cannabis After the establishment of state-wide legislation regarding cannabis, acting in accordance with its local jurisdictional authority under MAUCRSA, the Avalon City Council began the process to develop its local ordinance. After discussions and code revisions at four City Council meetings, the current cannabis ordinance (Ordinance #1163-17, Chapter 5-20 of the AMC) was adopted on November 7, 2017.

In development of Ordinance #1163-17, the City Council worked to provide a means for public access to medical cannabis by supporting a medical cannabis business delivery process, whileprotecting the City’s neighborhoods, residents and businesses from potential negative impacts.

Additionally, the City Council took steps to minimize the potential impact of cannabis business in Avalon by:
- Requiring any medical cannabis delivery service business to locate their brick-andmortar place of business within the City’s commercial or special commercial zones. - Prohibiting signage on the exterior of the brick-and-mortar facility identifying it as a commercial cannabis business.
- Requiring extensive odor control devices and techniques be implemented. - Requiring extensive security measures including 24-hour video surveillance, and uniformed personnel on site. - Limiting medical cannabis delivery services permits to just one in the first year of operation.

At the request of the City Council, the City of Avalon added two advisory measures to the March 3, 2020 General Municipal Election ballot.Measure E asked: “Should the City of Avalon expand its current commercial cannabis ordinance from medical delivery only to allow for adult-use/recreational delivery sales within the City of Avalon city limits?” - 58.45% or 612 voters voted “No” against expansion of the ordinance to allow adult use/recreational delivery.
- 41 .55% or 435 voters voted “Yes” in favor of expansion of the ordinance to allow adult use/recreational delivery.

Measure F asked: “Should the City of Avalon expand its current commercial cannabis ordinance to allow for a cannabis storefront location or dispensary within the City of Avalon city limits?”
- 65.14% or 682 voters voted “No” against expansion of the ordnance to allow a cannabis storefront.
- 34.86% or 365 voters voted “Yes” in favor of expansion of the ordinance to allow for a cannabis storefront.

Since the advisory measures, City Staff have not received any significant request or call for expansion of the cannabis ordinance from the public at large. Additionally, the medical cannabis delivery permit was suspended from September 2021 to 2025. During that time period, City Staff did not receive any significant inquiries, or requests from the community atlarge for the return of medical cannabis.

Options to Pursue Legalization of Adult-Use Cannabis

1. Direct City Staff to Place a Measure on the November 3, 2026 General Election as either an advisory measure or final consideration.

For example, Measure E and Measure F were both Advisory Measures that provided a clear direction at the time that the residents were not in favor of either recreational delivery or storefront dispensary. In reliance on the results of these two advisory measures, City Council did not pursue either path.

Additionally, on November 8, 2016, a citizen referendum was placed on a Special Election for the consideration of Measure X. Measure X asked: “Shall the Avalon Municipal Code he amended to permit up to two medical marijuana dispensaries and similar facilities, both fixedand mobile, operate within the City, and to permit the cultivation, manufacture and processing of medical marijuana products, subject to specified standards, and further subject to a $10,000 annual license tax and a 12% transaction fee/tax on each individual medical marijuana sale until repealed by voters, and generating approximately $200,000 annually?” - 63% or 721 voted “No”. - 36% or 421 voted “Yes”.

City Council may request an advisory measure to appear on a ballot as was done in 2020, or for a ballot measure enacting the proposed changes to the Avalon Municipal Code and establishing a tax as was done in 2016.The deadline for a local jurisdictional ballot measure to appear on the November 3, 2026 General Election ballot — either by citizen referendum or City Council direction — is August 7, 2026.

Additionally, even if a ballot measure is approved, it is not clear that Council would be authorized to award a newly created recreational adult-use permit to the previously existingmedical delivery permit holder or open the new permit up for applications.

2. Amend the Avalon Municipal Code and Direct City Staff and City Attorney to Draft a Development Agreement with the Existing Permit Holder
ERBA has proposed City Council amend Chapter 5-20 of the AMC to allow for adultuse/recreational cannabis delivery and enter into a development agreement setting forth a 5% fee of all of ERBA’s gross sales to be remitted to the City annually.

The City Council may amend the AMC; and a fee could be established through a developmentagreement. Setting a fee via a development agreement creates more risk to the City than avoter approved tax/fee The State of California Government Code Section 66000-66008 establishes rules for how local agencies can establish, set, and use fees. An established fee should reflect cost of services or the direct impact to offset use of public facilities. While a feeagreed upon through the negotiation of a development agreement is defensible, it imposesmore risk than a voter approved tax/fee.

Further, if the AMC is amended to allow recreational cannabis delivery, the City Council may want allow competition for such a vendor rather than extending the use to the current operator of the medical delivery service.

An additional consideration is whether modifying the AMC and entering into a DevelopmentAgreement fee would subject the City Council to arguments that it is circumventing the prior voter decisions to reject the expansion of cannabis in Avalon as reflected in the previous ballot measures.FISCAL IMPACTS: Undetermined.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Unknown.

FOLLOW UP ACTION: Implement Council direction.

ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda in compliance with the Brown Act.

ATTACHMENTS: September 17, 2024 Staff Report.

CITY OF AVALON CITY COUNCIL
MEETING DATE: September 17, 2024 AGENDA ITEM:

ORIGINATING DEP: Administration CITY MANAGER:

PREPARED BY: Devin Hart, Management Analyst
SUBJECT: Adult Use Cannabis Feasibility Discussion
RECOMMENDED ACTION(S): Hear presentation. If consensus is reached, provide direction to Staff.

REPORT SUMMARY: A member of the City Council requested City Staff bring a report before the City Council considering expansion of the Avalon Municipal Code to include Adult-Use Cannabis. Specifically, the Councilmember requested Staff research and provide an analysis regarding a store front adult-use facility, the community’s desire/interest in the facility, and projected economic and other impacts.Legal Framework
Though the use of medical cannabis was legalized in the State of California in 1996, adult-use or recreational cannabis was prohibited until adoption of Proposition 64 on November 8, 2016.On June 27, 2017, Governor Jerry Brown signed into law a single comprehensive legislative document that took the existing regulatory framework established for medical cannabis and incorporated non-medical cannabis regulations. This legislation is known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”). The legislation specifically preserved local jurisdictional authority to adopt and enforce local ordinances that limit or completely prohibit the establishment or operation of medical and non-medical cannabis business operations within their purview. The state licensing authority will not approve an application for a state cannabis business license if the state license will violate a localordinance in the jurisdiction it will operate.

The Department of Cannabis Control Medicinal and Adult-Use Commercial Cannabis Regulations — California Code of Regulations Title 4 Division 19 Section §15311, “Requirements for the Transportation of Cannabis and Cannabis Products” — establishes the requirements for transporting cannabis and cannabis products between licensees or licensed premises.

Though regulation §153111 (e) expressly prohibits transportation of cannabis and cannabis products “by means of aircraft, watercraft, drone, rail, human-powered vehicle, or unstaffed vehicle,” a carve out exits for Catalina within Section (p):

Notwithstanding subsection (e), transportation of cannabis and cannabis products may be conducted via waterway to licensees located on Catalina island. The provisions of this section and other sections regarding vehicle requirements also apply to vessels used to transport cannabis and cannabis products via wateiway pursuant to this section.

Cannabis is an illegal substance under the Federal Controlled Substances Act, 21 USC et. seq., (“Act”) which makes it unlawful for any person to cultivate, manufacture, distribute or dispense, or possess with intent to manufacture, distribute or dispense cannabis. The Act does not contain any exemption for cannabis used for medical purposes. Additionally, per federallaw, cannabis is listed as a Schedule 1 drug. Federal penalties for possession of cannabis include:
- First Offense — Misdemeanor with potential for up to one year of incarceration and $1,000 in fines. - Second Offense — Misdemeanor punishable by 15 days to two years of incarceration and $2,500 in fines.
- Third and subsequent Offenses — Misdemeanor or felony punishable by 90 days to 3 years of incarceration and fines up to $2,500.

Federal penalties increase significantly for selling or attempting to sell cannabis based on the amount:
- Less than 50 kilograms — Felony punishable by up to five years in prison and a $250,000 fine
- 50 to 99 kilograms — Felony punishable by up to 20 years in prison and fines of up to $1,000,000.
- 100 to 999 kilograms — Felony punishable by five to 40 years in prison and possible fines of up to $2,000,000.
- 1000 kg and up — Felony punishable by ten years to life in prison and $4,000,000 in fines.

However, it should be noted, federal law enforcement agencies have issued guidelines allowing for state regulatory policies that include cannabis for medical purposes. Specifically, the Rohrabaher-Farr Amendment, first introduced to the U.S. House of Representatives in 2001 and adopted in an omnibus spending bill in December 2014, prohibits the U.S. Justice Department from spending any funds on actions designed to interfere with the state medical cannabis laws. To date, this provision has been included in every subsequent spending bill.

Rohrabacher-Farr Amendment states:

None of the funds made available in this Act to the Department of Justice may be used, with respect to the States of Alabama, Alaska, Arizona, California, Colorado,Connecticut, Delaware, District of Columbia, Florida, Hawaii, Illinois, Iowa, Kentucky, Maine, Matyland, Massachusetts, Michigan, Minnesota, Mississipp Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, Oregon, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Washington, and Wisconsin, to prevent such States from implementing their own State laws that authorize the use, distribution, possession, or cultivation of medical marijuana.

The Rohrabacher-Farr Amendment is vitally important for the City of Avalon’s medical cannabis program as the surrounding Pacific Ocean falls within the jurisdictional authority of the United States Coast Guard (‘USCG”).The City has received reports of medical cannabis delivery vessels being boarded by USCG.

As the vessel, medical cannabis and medical cannabis products have had all of the required documentation for certified medical use, no action was taken by the USCG. The Harbormastercontacted the USCG who confirmed, adult-use cannabis transportation in federal waterways is illegal.

Though, state regulation §153111 (p) does not distinguish between medical or adult-use cannabis in is regulatory carve out for Catalina Island, the Rohrabacher-Farr Amendment is specific in its guidance to restrict funding for interference with State permitted medicalcannabis operations. No federal protections, exemptions or guidelines exist for adultuse/recreational cannabis. When state law and federal law conflict, federal law displaces orpreempts state law. Therefore, City Staff interpret there is no viable way to transport adult-use cannabis to Catalina Island without violating federal law (transportation of a controlledsubstance) and/or risking the federal penalties as described within this report.

The Department of Justice has proposed a rule change to move cannabis from Schedule I to Schedule III controlled substance. The rule change emphasizes the currently accepted medicaluse of cannabis, but, again, does not address adult use. If the rule change occurs, transportation of cannabis across federal waterways will still be prohibited.

Development of Local Cannabis Regulations and Public Interest in Adult-Use Cannabis After the establishment of state-wide legislation regarding cannabis, acting in accordance with its local jurisdictional authority under MAUCRSA, the Avalon City Council began the process to develop its local ordinance. After discussions and code revisions at four City Council meetings, the current cannabis ordinance (Ordinance #1163-17, Chapter 5-20 of the AMC) was adopted on November 7, 2017.

In development of Ordinance #1163-17, the City Council worked to provide a means for public access to medical cannabis by supporting a medical cannabis business delivery process, while protecting the City’s neighborhoods, residents and businesses from potential negative impacts.

Additionally, the City Council took steps to minimize the potential impact of cannabis business in Avalon by:
- Requiring any medical cannabis delivery service business to locate their brick and mortar place of business within the City’s commercial or special commercial zones. - Prohibiting signage on the exterior of the brick and mortar facility identifying it as a commercial cannabis business.
- Requiring extensive odor control devices and techniques be implemented.- Requiring extensive security measures including 24 hour video surveillance, and uniformed personnel on site.
- Limiting medical cannabis delivery services permits to just one in the first year of operation.

At the request of the City Council, the City of Avalon added two advisory measures to the March 3, 2020 General Municipal Election ballot.

Measure F asked: “Should the City of Avalon expand its current commercial cannabis ordinance from medical delivery only to allow for adult-use/recreational delivery sales within the City of Avalon city limits?” - 58.45% or 612 voters voted “No” against expansion of the ordinance to allow adultuse/recreational delivery. - 41 .55% or 435 voters voted “Yes” in favor of expansion of the ordinance to allow adultuse/recreational delivery.

Measure F asked: “Should the City of Avalon expand its current commercial cannabis ordinance to allow for a cannabis storefront location or dispensary within the City of Avalon city limits?”
- 65.14% or 682 voters voted “No” against expansion of the ordnance to allow a cannabis storefront.
- 34.86% or 365 voters voted “Yes” in favor of expansion of the ordinance to allow for a cannabis storefront.

Since the advisory measures, City Staff have not received any request or call from expansion of the cannabis ordinance from the public at large. Additionally, the medical cannabis delivery permit was suspended in September 2021. From that time to date City Staff have not received any inquiries, outcry or requests from the community at large for medical cannabis.Community and Economic Impact To accurately determine the potential economic impact of expansion of the City’s cannabisordinance, a number of factors must be determined, including:
- Federal regulations regarding transport adult-use cannabis to the Island. - Type of commercial cannabis facility -storefront dispensary vs adult-use delivery. - Locations for consumption. (Currently, smoking cannabis is prohibited in public places.) This is a significant factor to determine as approximately 75% of the Island’s visitors are day trippers or from a cruise ship. These visitors would be limited in their options if they wanted to consume the product while in the City.
- Geographic isolation.- Locations for brick-and-mortar commercial cannabis facilities. With limited properties, limited pool of property owners and currently no known vacancies in the City’s commercial and special commercial zones, finding an appropriate location may bedifficult. - Additional cost of enhanced enforcement and additional administrative support to manage commercial cannabis regulations as well as additional enforcement forregulation of illicit cannabis market. - Rate of taxation. Adult-use cannabis and cannabis products are subject to sales tax. In addition, the state requires a 15% excise tax on cannabis sale gross receipts to supportenvironmental cleanup, law enforcement and drug prevention programs. The City isable to add an additional local cannabis business tax not to exceed 15%. However, the rate of tax may be prohibitive to creating a thriving legal, commercial cannabis market. - Other visitor driven revenue areas that may be impacted by an expanded cannabis ordinance. Further, any City imposed cannabis tax would have to be approved by the voters.

Not accounting for the above-listed factors, City Staff conducted a survey of California cities to provide some framework to understand and project potential cannabis revenues for Avalon.

The City’s Staff typically look to for comparison — Monterrey, Morro Bay, Solvang, Oceanside, Redondo Beach, Manhattan Beach, Del Mar — prohibit all cannabis operations in their jurisdictions. Therefore, Staff determined the cities of Santa Barbara, Napa, West Hollywood, and South Lake Tahoe, may be the best comparable cities due to their size, visitor driven economy, etc.

City of Santa Barbara
- Population: 87,533 Annual Visitors: 6.5 million- Approximate size: 43.09 square miles - Limit of 3 Retail Storefront Commercial Cannabis Businesses- Per Capita Cannabis Sales: $61.77- Local Cannabis Business Tax: 6% - Taxable Revenue — Cannabis: $21,065,247 Total Local Taxes: $1,265,714.82 - Taxable Revenue — Food Services and Drinking Places: $568,980,534 City of Napa
- Population: 78,315 Annual Visitors: 3.7 million- Approximate size: 18.1 square miles- Currently 9 Retail Storefront Commercial Cannabis Businesses, with no cap on number of storefronts.
- Per Capita Cannabis Sales: $54.53
- Local Cannabis Business Tax: 0% - Taxable Revenue — Cannabis: $16,813,458.00 Total Local Taxes: $0 - Taxable Revenue — Food Services and Drinking Places: $352,100,181 City of West Hollywood
- Population: 34,514 Annual Visitors: 22 miflion
- Approximate size: 1 .9 square miles - No limit. Currently more than 70 Commercial Cannabis Businesses including adult-use, medical, consumption areas for smoking, vaping and edibles, consumption areas for edibles only, and delivery services.
- Per Capita Cannabis Sales: $183.22- Local Cannabis Business Tax: 7.5% Taxable Revenue — Cannabis: $25,818,717 Total Taxes: $1,936,403.78 - Taxable Revenue — Food Services and Drinking Places: $604,883,880 City of South Lake Tahoe - Population: 21,175 Annual Visitors: 15 million - Approximate size: 16.6 square miles - Limit of 3 Retail Storefront Commercial Cannabis Businesses. - Per Capita Cannabis Sales (2023): $201.47 - Local Business Tax: 6%
- Taxable Revenue: $16,684,269 Total Taxes: $1,001,056.00- Taxable Revenue — Food Services and Drinking Places: $174,879,862 City of Avalon
- Population: 4,000 Annual Visitors: 1 million- Approximate size: 2.9 square miles- Commercial cannabis businesses TBD- Taxable Revenue — Food Services and Drinking Places: $48,041 561 Revenue Analysis #1 — Food and Beverage Sales Comparison City Staff compared the taxable revenue from Adult-Use Cannabis to the taxable revenue from Food Services and Drinking Places for the selected cities to estimate the amount of taxable revenue that could be generated from Adult-Use Cannabis sales in Avalon. For calendar year 2023, businesses in the City reported $48 million in taxable sales from Food Services and Drinking Places. For the cities selected above, taxable sales from Adult-Use Cannabis ranged from 3.7 % to 9.5% of the taxable sales generated from Food Services and Drinking Places inthe same city. Santa Barbara, Napa, and West Hollywood ranged from 3.7% to 4.8%; whereas South Lake Tahoe appears to be an outlier at 9.5%. This is likely due to increased sales activity resulting from its proximity to Nevada, which did not legalize Adult-Use Cannabis until January 2024. Using 5.0% as the basis of estimate-, Avalon would generate an estimated $2.4 million in taxable sales from Adult-Use Cannabis. Depending on the tax rate, Adult-Use Cannabis could generate the following revenue (not accounting for the increased administrative and code enforcement costs):

Tax Rate Potential Revenue
5% $120,000
10% $240,00015% $360,000
Revenue Analysis #2 — Per Capita Sales Comparison
Statewide, the per capita average in cannabis purchases is $158.00. In an attempt to providean accurate estimate of the City’s per capita potential, Staff took the daily average of 1 millionannual visitors — 2,700 — and added it to the rounded up number of residents — 4,000. Staff rounded up again to the nearest thousand 7,000.

City Per Capita Sales Estimated Avalon Sales
Santa Barbara $61.77 $432,390
Napa $54.53 $$381,710
West Hollywood $183.22 $1,282,540
South Lake Tahoe $201.47 $1,410,290Statewide Average $158.00 $1 ,1 06,000 Twice Statewide Average $316.00 $2,212,000
Revenue Analysis # 3 — Annual Cannabis Sales to Achieve Tax Revenue Benchmarks:

Cannabis Sales 5% Tax Rate 10% Tax Rate 15% Tax Rate
$1 000,000.00 $50,000.00 $100,000.00 $150,000.00$5,000,000.00 $250,000.00 $500,000.00 $750,000.00 $10,000,000.00 $500,000.00 $1,000,000.00 $1,500,000.00$18,000,000.00 $900,000.00 $1,800,000.00 $2,700,000.00 FISCAL IMPACTS: Undetermined.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Unknown.

FOLLOW UP ACTION: Implement Council direction.

ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda in compliance with the Brown Act.

ATTACHMENTS:
- State list of cities participating in cannabis business.- Avalon Municipal Code — Chapter 5-20

CITY OF AVALON CITY COUNCIL
MEETING DATE: June 16, 2026 AGENDA ITEM:
______-
ORIGINATING DEP: Harbor CITY MANAGER: _______ PREPARED BY: Kevin Schmidt, Harbor Master SUBJECT: Repair and Maintenance of City Shoreboat FloatRECOMMENDED ACTION(S): 1. Amend the Fiscal Year 2025-26 Budget, adding an additional $33,500 to account #10470-5705 to support the rehabilitation of the City-owned Shoreboat End Float. 2. Ratify prior action and authorize an additional expenditure of an amount not-to-exceed $33,346.36 to Al Larson Boat Shop, a sole source vender, for the rehabilitation of the City-ownedShore-boat Float for a total repair of $93,346.36.

REPORT SUMMARY: On April 7, 2026, City Council authorized repairs and maintenance for an amount not-to-exceed $60,000 for annual maintenance of the City-owned Shoreboat End Float by Al Larson Boat Shop.Once out of the water, significant concealed conditions were discovered on the Shoreboat Floatbelow the waterline, requiring additional repairs and costs to safely prepare the float for the summer season. These conditions included corrosion removal and remediation on the floatationchambers. Final cost for repairs exceeded estimated costs due to the unforeseen repair requirements.As the Float was already being repaired and such additional repairs could be performed then, rather than later if City Council authorization was sought, increasing the costs to the City, the City Manager authorized the additional work, subject to the City Council subsequently approving the additional payment.

Float Rehabilitation is part of the City’s capital improvement plan outlined in the Fiscal Year 2025-26 Budget.

On December 17, 2019, the City Council designated Al Larson Boat Shop as a sole source vendor, as defined in the Avalon Municipal Code Section 3-4.111(b), to contract for repair and maintenance on certain City-owned floats.

To meet its financial obligations, City Staff recommends the City Council amend the Fiscal Year 2025-26 Budget, adding an additional $33,500 to account #10470-5705 to support the rehabilitation of the City-owned Shoreboat End Float. City Staff also recommends the CityCouncil ratify prior action and authorize an additional expenditure of an amount not-to-exceed$33,346.36 to Al Larson Boat Shop, a sole source vender, for the rehabilitation of the City-owned Shore-boat Float for a total repair of $93,346.36.

FISCAL IMPACTS: Float Rehabilitation is part of our Capital Improvement projects outlined in the Fiscal Year 2025-26 Budget. On October 7, 2025, $60,000 was added to fund 10470-5705 for this project. Sufficient monies are in this fund due to other float maintenance being less costlythan anticipated.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City budget would not accurately reflect the repair costs.

FOLLOW UP ACTION: Implement City Council direction.

ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly posted on the agenda.

ATTACHMENTS: April 7, 2026, Staff Report; Invoice 26-5796 Al Larson Boat Shop

CITY OF AVALON CITY COUNCIL
MEETING DATE: April 7th, 2026 AGENDA ITEM:ORIGINATING DEP: Harbor Department CITY MANAGER:

PREPARED BY: Kevin Schmidt, Harbor Master
SUBJECT: Repair & Maintenance of City Shore-boat Float
RECOMMENDED ACTION(S): Authorize an expenditure of an amount not to exceed $60,000 to Al Larson Boat Shop, a sole source vender, for the rehabilitation of the City-owned Shore boat Float from account #10470-5705.REPORT SUMMARY: On December 17, 2019, the City Council designated Al Larson Boat Shop as a sole source vendor, as defined in the Avalon Municipal Code Section 3-4. ‘1 11(b), tocontract for repair and maintenance on certain City-owned floats.

On October 7th, 2025 the City Council authorized the purchase of the Shor-boat Float andamended account #10470-5705 with an additional $60,000 for annual maintenance of the float The City-owned Shore-boat Float needs routine annual maintenance including the removal and installation of new bottom paint, anodes, and repairs to its structure.

Al Larson Boat Shop uses a unique rail system for hauling floats and vessels out of the water.

The vessel, or float, is “floated” onto a platform, blocked and secured, and then the entireplatform is winched up the rails to its final dry dock position. This is a safer, more efficient and cost-effective way to haul the City’s floats out of the water.

FISCAL IMPACTS: Float Rehabilitation is part of our Capital Improvement projects outlined in the Fiscal Year 2025-26 Budget. On October 7th, 2025, $60,000 was added to fund 10470 5705 for this project.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Essential floatmaintenance will not be completed, possibly affecting the Shore-boat Float’s readiness for thesummer season.FOLLOW UP ACTION: Implement City Council direction.

ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly posted on the agenda.

ATTACHMENTS:

October 7th 2025 City Council Agenda

INVOICE

AL LARSON BOAT SHOP
H4(, S. s:AsiDr; AVEXUF. TERMIN \i. ISLAND (SHE 5
THMiNAL ISL.Nl). CA 907H
SOLD To: AVALON HARBOR DEPARTMENT
P.O. BoX 1085
AVALON, CA 90701
DATE: May 24, 2026
INVOICE 26-5796

YOUR ORDER
OUR JOB NO. 060-26

VESSEL AVALON SHORE FLOAT

INTEREST WILL BE CHARGE ON OVERDUE ACCOUNTS
WORK ITEM DESCRIPTION PRICE — TOTAL
I. I)ry dock float on marine railways No.2
Labor: 44 hrs, @ $88.00 $3,872.00
Material $ 136.50 $ 4,008.<)

2. Erect necessary staging, serape, wash and paint boat. Remove staging Upon t’Onlpleti<)11.

Labtr: 595.5 hrs. @ $88.0() $52,404.00
Material $24, 110.1<) $76,513, It)

3. Not used

4. Provide labor and material to patch holes in various locations Labor: 62 hrs. @ $88.0() $ 5,456.00
Material $ 942.66 $ 6,398.6(,

5. Provide labor and material to refasten hand rails
Labor: 25 hrs. @ $88.0() $ 2,200.0<)
Material $ 248.75 $ 2,448.75

6. Pi’ovicle labor and material to replace mooring chains and Shackles.Labor: 10 Firs. @ $88.00 $ 880.00
Material $ 561.40 $ 1.331.4<)
$90,811.41
Sales tax on materials $25,999.41 $ 2,534.95
Total $93,346.36
Complete Marine Facilities . I 000Ton Dry Dock Marine Railways I 25 Slip Manna . Ihhhd ‘N) . h 0 Si.i:jiici (‘jhlv.rni.i

CITY OF AVALON CITY COUNCIL
MEETING DATE: June 16, 2026 AGENDA ITEM: 15
ORIGINATING DEP: Administration CITY MANAGER:__________ PREPARED BY: Jocelyn Francis, Assistant City Manager
SUBJECT: Award to DCCM for Project Management Services
RECOMMENDED ACTION(S): 1. Make the affirmative finding the City will not gain a competitive advantage through a separate competitive solicitation and that the required services can be obtained more economically and efficiently pursuant to Avalon Municipal Code Section 3-4.111(C); 2. Award a Professional Services Agreement to DCCM to provide Project Management Services for the Pebbly Beach Landfill Life Site Optimization Project and related on-call consulting services in an amount not-to-exceed $200,000 annually; and 3. Authorize the City Manager to execute the Agreement and any relateddocuments, including amendments within the approved contract authority.

REPORT SUMMARY: The Pebbly Beach Landfill Life Site Optimization Project is a critical infrastructure initiative intended to maximize the operational lifespan of the City’s landfill facilities, improve operational efficiencies, support regulatory compliance, and ensure continued solid waste management services for the Avalon community.

As the project advances through planning, permitting, design, environmental review, and implementation phases, the City requires dedicated project management support to coordinate multiple consultants, regulatory agencies, utility providers, contractors, andstakeholders. The City had been using in-house staff for project supervision and oversight but as the needs for the project advance additional outside professional support is necessary to maintain project schedules and ensure successful project delivery.

On October 2, 2024, the City issued a Request for Proposals (RFP) for Building, Engineering, and Consulting Services. The City received six proposals from qualified firms. A selection panel reviewed the proposals based upon qualifications, relevant experience, project approach, responsiveness to the City’s needs, and cost. Each consultant participated in a virtual interview and presentation on November 15, 2024.

Following the evaluation process, the City Council awarded contracts to 4LEAF, Inc. and International Consulting Services (ICS) to provide various professional services, not including project management. At this time, City staff has identified the need for additional project management resources to support implementation of the Pebbly Beach Landfill Life Site Optimization Project, one of the City’s most significant capital and regulatory compliance initiatives.

Based on the information obtained during the City’s competitive RFP process, staff recommends entering into a Professional Services Agreement with DCCM to provide project management services specifically related to the Pebbly Beach Landfill Life Site Optimization Project. DCCM was identified as one of the City’s preferred firms through the RFP evaluation process and possesses the experience, technical expertise, and resources necessary to assist the City with project delivery, consultant coordination,regulatory agency communications, schedule management, grant administration support, and other project management functions. Of the firms participating in the 2024 process, DCCM had superior project management abilities. They were not chosen for that work because at that time, the work would be done in house.

DCCM submitted a comprehensive proposal during the City’s 2024 REP process and was highly rated by the evaluation panel, though not chosen for the specific work contemplated to be done by outside vendors at that time. The firm’s proposal demonstrated substantial experience providing project management, engineering support, capital improvement program administration, and municipal consulting services for local government agencies throughout California.

Staff’s evaluation identified several strengths including:
• Extensive experience managing complex public infrastructure and environmental projects;
• Demonstrated understanding of municipal operations and regulatory requirements;
• Strong project controls, reporting, and stakeholder coordination capabilities; • Availability of qualified personnel to immediately support City needs; • Competitive fee structure; and• Positive references from public agency clients.

Following the City’s review of the 2024 process, staff contacted references provided byDCCM. References confirmed that DCCM consistently delivered quality work products, maintained project schedules, communicated effectively with agency staff, and provided responsive professional services.

Awarding the proposed agreement will allow the City to maintain continuity on the Pebbly Beach Landfill Life Site Optimization Project while providing flexibility to obtain additional technical consulting support when needed.

Avalon Municipal Code Section 3-4.111(C) authorizes the City Council to make a findingthat the City will not gain a competitive advantage by bidding and that services may be obtained more economically or efficiently through a professional services agreement.

Staff recommend that the City Council make this finding based on the following:
• DCCM participated in the City’s competitive RFP process completed in 2024 and was highly rated;
• The services are professional and specialized in nature; • The City has already evaluated DCCM’s qualifications, experience, staffing, and pricing;
• Immediate project management support is needed to maintain project continuity during staffing transitions; and
• Utilizing DCCM will provide a more efficient and cost-effective approach than conducting a new solicitation process. Maintaining project progression is critical.

The proposed agreement would be effective through December 31, 2029, with options for future extensions subject to City approval and include additional on-call services related to engineering plan review and inspection services to provide staff flexibility in seeing the project through to completion.

FISCAL IMPACTS: The proposed Professional Services Agreement has a total not-toexceed amount of $200,000 annually. Funding is available within existing project budgets and approved appropriations associated with the Pebbly Beach Landfill Life SiteOptimization Project and related professional services accounts.

GOAL ALIGNMENT: Not applicable.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City will not have adequate resources to manage the Pebbly Beach Life Site Optimization Project andrisk not meeting tight project timelines.

FOLLOW UP ACTION: Execute a professional services agreement with DCCM and hand off project management responsibilities.

ADVERTISING, NOTICE AND PUBLIC CONTACT: The item was properly listed on the posted agenda pursuant to the Brown Act.

ATTACHMENTS:
• Scope of Work

EXHIBIT A
Scope of Services
Pebbly Beach Landfill Life Site Optimization Project

1. Project Background
The City of Avalon (‘City”) is advancing the Pebbly Beach Landfill Life Site Optimization Projectto extend the operational life of the City’s existing landfill facility through the construction of an approximately eighteen-foot mechanically stabilized earth (“MSE”) wall at the toe of the existing landfill site (roughly 5.5 acres on a 7 acre parcel). The proposed improvement is anticipated to create vertical disposal airspace equivalent to more than twenty-seven years of additional landfillcapacity.

The City currently has less than one and one-half (1.5) years of remaining landfill capacityavailable at the existing site, making timely entitlement, environmental clearance, permitting,design, and construction implementation critical to continued solid waste operations for thecommunity. The site is owned by the City, operated by CR&R, and is located in an unincorporated portion of Los Angeles County.

The City previously assigned an internal staff member to manage the project; however, that position is expected to be vacant by June 23, 2026. The City therefore seeks consultant support to serve as the City’s representative and owner’s project manager for the ongoing entitlement,environmental, design, permitting, bidding, and construction coordination phases of the project.The City has already completed substantial work on the project, including:
• Submission of the Conditional Use Permit (“CUP”) application and SEATAC Coastal Development Permit (“CDP”) application to Los Angeles County Regional Planning; • Engagement of Geo-Logic Associates, with subconsultant Rincon Consultants, to prepare and submit CEQA documentation and technical studies;
• Completion and submission of technical studies and reports supporting an Initial Study — Mitigated Negative Declaration (“IS-MND”);• Receipt of approvals from the Los Angeles County SEATAC Board and the Los Angeles County Solid Waste Task Force to continue to proceed;
• Ongoing coordination with County departments to address comments from GMED (inprogress, nearly complete);• Anticipated public circulation of the lS-MND in Summer 2026; • Ongoing preparation of engineering plans and specifications for the MSE wall by Geo Logic Associates to be used in bid and procurement documents (final review and approval by City Engineer or designee);
• Regular bi-weekly coordination meetings among the City, Geo-Logic, Rincon, CR&R, and related stakeholders;
• Regular bi-weekly interagency coordination meetings with Los Angeles County Regional Planning, Public Works, Environmental Health, and Supervisor Hahn’s Office; and • Coordination with the California Coastal Commission regarding requested alternatives analyses (submitted) and Bluff Retreat Analysis (submitted).

NOTE:

All project documentation developed to date has been uploaded to the City’s SharePoint projectfile and will be shared with project management consultant.The project is anticipated to be constructed in two (2) phases, ideally during fall constructionwindows to improve operational efficiency, weather conditions, and biological mitigation compliance.
14 650.004154755.1

2. Purpose of Services
The purpose of the consultant services is to provide comprehensive project management and owner’s representative services on behalf of the City throughout the remaining entitlement,environmental review, permitting, design, procurement, construction coordination, and closeout phases of the project. The consultant shall act in the best interests of the City and the Avalon community to:
• Maintain project momentum and schedule adherence;
• Ensure consultant deliverables are completed in accordance with approved milestones;• Facilitate interagency coordination and timely regulatory approvals; • Represent the City in project-related meetings and communications;• Monitor project risks and critical path items;• Support City staff and leadership with technical, administrative, and strategic project coordination; and
• Coordinate with the City’s existing on-call construction management consultant, ICS, as appropriate.

3. Scope of Services
The consultant shall provide the following services:

Task 1 — Project Management and Owner Representation

1.1 Serve as the City’s primary project management representative and owner’s representative for the project.
1 .2 Review all project files, reports, applications, technical studies, environmental documents, correspondence, and regulatory comments contained within the City’s SharePoint project file. 1 .3 Develop and maintain a master project schedule identifying:
• Critical path milestones;• Agency review periods;• Environmental review milestones;• Design completion milestones;• Procurement milestones; and • Construction sequencing and anticipated implementation windows. 1 .4 Monitor consultant performance and progress against approved schedules and deliverables.1.5 Identify schedule risks, permitting risks, and coordination issues and recommend corrective actions to the City.
1 .6 Coordinate directly with City staff, legal counsel, consultants, regulators, and stakeholders as authorized by the City.
1 .7 Prepare periodic project status reports summarizing:
• Progress completed;• Upcoming milestones;• Outstanding agency comments;• Budget status;• Key risks/issues; and • Recommended actions.•
Task 2 — Agency and Stakeholder Coordination2.1 Attend and facilitate bi-weekly internal virtual project coordination meetings involving:
• City staff;• Geo-Logic Associates;
• Rincon Consultants;
• CR&R;and• Other project stakeholders.
15 65059.00000\44 154755.1

2.2 Attend and facilitate bi-weekly agency virtual coordination meetings with:
• Los Angeles County Regional Planning;• Los Angeles County Public Works; • Los Angeles County Environmental Health;• Supervisor Hahn’s Office; and • Other agencies as required.

2.3 Coordinate communications with:
• California Coastal Commission staff;• County departments;• Utility providers;• Regulatory agencies; and • Community stakeholders.

2.4 Track agency comments, review timelines, requested revisions, and required follow-upactions.2.5 Assist the City in maintaining proactive interagency communication to support timelyapprovals.

Task 3 — Environmental and Entitlement Coordination

3.1 Coordinate with Geo-Logic Associates and Rincon Consultants regarding:
• CEQA compliance;
• lS-MND publication;
• Public review processes;• Comment response preparation; and • Hearing support materials.

3.2 Monitor preparation of Coastal Commission-requested analyses, including:
• Project alternatives analyses; and• Bluff Retreat Analysis.

3.3 Assist the City in coordinating CUP, CDP, CEQA, and related entitlement approvals.3.4 Support preparation for public hearings, agency meetings, presentations, and stakeholder outreach activities.3.5 Review environmental and entitlement deliverables for consistency with project objectives andCity interests.

Task 4 — Design and Construction Coordination4.1 Coordinate with Geo-Logic Associates regarding preparation of engineering plans, technical specifications, cost estimates, and construction sequencing.

4.2 Monitor progress toward completion of final design and permit-ready documents.4.3 Coordinate constructability, operational, and phasing considerations with City staff and CR&R.4.4 Assist the City with procurement support activities, including:
• Lead Bid package coordination (including finalizing REP documents and publication); • Pre-bid meeting support;• Bid review support; and• Contractor selection coordination.

4.5 Coordinate with the City’s on-call construction management consultant, ICS, regarding construction management roles, responsibilities, and transition planning.

4.6 Support coordination of construction phasing, operational continuity, and biological mitigation requirements.

Task 5 — Budget and Einancial Management

5.1 Develop and maintain project budget tracking documentation.5.2 Review consultant invoices for consistency with contract scope and progress completed. 16 65059 00000\44154755 I

5.3 Track project expenditures against approved budgets.

Task 6 — Public and City Council Support6.1 Prepare staff reports, agenda materials, presentation materials, and briefing memoranda as requested.

6.2 Attend City Council meetings, community meetings, workshops, and public hearings as requested.

6.3 Provide technical and project management support during public presentations and stakeholder engagement activities.

4. Deliverables
Deliverables may include, but are not limited to:
• Master project schedule;• Bi-monthly status reports to City Manager and Public Works Director;• Agency coordination tracking logs; • Comment tracking matrices;• Budget tracking reports;• Procurement coordination documentation;• Council and public meeting materials; and • General project correspondence and coordination documentation.

5. Project Schedule
The consultant shall commence services upon issuance of a Notice to Proceed and continue through completion of project entitlement, permitting, procurement, and construction coordination phases, as directed by the City. The consultant shall support the City’s objective of maintaining an expedited schedule due to the limited remaining landfill capacity available at the site.

6. City ResponsibilitiesThe City shall:
• Provide access to available project files and SharePoint documentation; • Facilitate introductions to project consultants and agency contacts;• Provide existing contracts, studies, reports, and correspondence;• Designate a City point of contact; and• Coordinate internal City reviews and approvals as necessary.

7. Optional Additional Services
At the City’s discretion, additional services may include:
• Additional public outreach services;• Coastal Commission hearing support; • Construction phase oversight;• Operational transition planning; and• Landfill compliance coordination during construction activities. 17 6505900000\44 I 54755.1

EXHIBIT B
Schedule of ChargeslPayments
Consultant will invoice City on a monthly cycle. Consultant will include with each invoice a detailed progress report that indicates the amount of budget spent on each task. Consultant will inform City regarding any out-of-scope work being performed by Consultant. This is a time-and-materials contract.

All-inclusive hourly rate of $269, which incorporates all travel and incidental expenses, including ferry travel, on island transportation, occasional hotel stays, and incidental costs. No separate travel billing will be submitted.The estimated cost for an initial 26-week period is $87,1 56, consisting of the initial 24 hour kickoff and 25 weeks of ongoing project management at 12 hours per week. Month to month costs thereafter will be billed on a time and materials basis. 18 65059.00000\44 54755.1

CITY OF AVALON CITY COUNCIL
MEETING DATE: June 16, 2026 AGENDA ITEM: ______ ORIGINATING DEP: Public Works CITY MANAGER: £M( PREPARED BY: Robert Greenlaw, P.E., City Engineer
SUBJECT: Pebbly Beach Road Temporary Turn Around Installation and Traffic Safety Improvements
RECOMMENDED ACTION(S): Approve the plan as presented for modifications and striping along Pebbly Beach Road including installation of k-rail, signage and striping to install a temporary vehicle turn around.

REPORT SUMMARY: Due to construction associated with the Cabrillo Mole Revitalization Project, the parking and turn around area located at the Cabrillo Mole — approximately 120Pebbly Beach Road — will be eliminated.

To support taxi and tour operations, as well as traffic safety for all vehicles, City Staff propose:

1. Installation of a temporary taxi line that will queue up on the paver walkway on Pebbly Beach Road, adjacent to the sea plane ramp. A temporary 8-foot-wide walkway will be constructed above the ramp adjacent to the payers to serve as the relocated walkwayand loading area. The temporary taxi improvements include construction of a temporary deck, relocating the existing pedestrian guardrail, signing and striping.2. Installation of a vehicle turn around along Pebbly Beach Road, east of the Cabrillo Mole before Lover’s Cove. Improvements include installation/repositioning of k-rail, signageand striping to create a temporary vehicle turn around.

Pebbly Beach Road is frequently used by visitors, large commercial vehicles and residents andis one of two roads that connects town to the industrial area.

Working cooperatively with W-Trans, California Traffic Engineering Consultants, City Staff developed recommendations based on direction from the California Manual on Uniform Traffic Control Devices (MUTCD) as well as engineering judgement, to make recommendations to enhance the safety of the road.

City Staff is seeking approval of the plan by City Council before the installation of the improvements. This is one of the requirements of a design immunity defense.

If approved, the proposed modifications will be installed in September 2026 and will remain in place until the Cabrillo Mole Revitalization Project is completed.

GOAL ALIGNMENT: Traffic safety.

FISCAL IMPACTS: Undetermined.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: No safety improvements will be made to Wrigley Road.FOLLOW UP ACTION: Implement City Council direction.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.ATTACHMENT: Traffic plan.

GENERAL NOTES

1. ALL WORK SHALL BE COMPLETED IN ACCORDANCE
WITH THE 2025 CALTRANS STANDARD PLANS (CSP)AND THE 2026 CALIFORNIA MANUAL ON UNIFORM TRAFFIC CONTROL DEVICES (CA—MuTcD),

2. SIGNING AND STRIPING WORK IS TO BE COMPLETED
CONCURRENTLY.

SIGNING & STRIPING LEGEND

EXISTING STREET SIGN
NEW STREET SIGN AND POST. SEE THIS SHEET FORROADSIDE SIGN QUANTITIES.

STREET SIGN DESIGNATION. SEE SIGN TABLE, THIS SHEET.

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4” X 6” A 1 W16—9P 24” X 12” AHEAD
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NOTE; SIGNS ON THE K—RAIL SIDE OF PEBBLY BEACH ROAD SHALL BE MOUNTED ON K—RAIL POST ABOVE FENCE LINE.

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CITY OF AVALON CITY COUNCIL
MEETING DATE: June 16, 2026 AGENDA ITEM: Fl
ORIGINATING DEP: Administration CITY MANAGER: bj)A,.

PREPARED BY: Devin Hart, Senior Management Analyst
David M. Maistros, City Manager
SUBJECT: Contract for Stage 1 Design and Engineering Services Progressive Design-Build Contract for the Cabrillo Mole Revitalization Project Phase 2
RECOMMENDED ACTION(S): Authorize the City Manager to finalize negotiations and execute the Stage 1 design and engineering services progressive design-build contract for the Cabrillo Mole Revitalization Phase 2 Project with Anderson Burton Construction, Inc. for a notto-exceed sum of $1.8 million.

REPORT SUMMARY: Public Contract Code § 22185 et seq. authorizes the City to use progressive design-build contracting for the Progressive Design-Build Cabrillo MoleRevitalization Phase 2 Project (“Project”).

At a high-level, this Project includes two stages: (1) preconstruction design phase services (“Stage 1”); and (2) final design services and construction services to complete the Project (“Stage 2”). The selected design-builder performs the Stage 1 design and engineering services during or after which the design-builder proposes to City a Guaranteed Maximum Price (‘GMP”) to construct the Project and, if accepted by City, the parties will enter into an amendment to the contract for design-builder’s performance of Stage 2 services (final design and construction). If the design is not acceptable to the City or the GMP too high, the City has the option of not proceeding with Stage 2.

On May 19, 2026 the City Council authorized the City Manager to negotiate and bring back a contract agreement with Anderson Burton Construction for City Council approval for the Stage 1 design and engineering services progressive design-build contract for the Cabrillo Mole Revitalization Phase 2 Project.

After a series of meetings, City Staff and Anderson Burton representatives, including the architect-of-record — RRM Design Group, have successfully negotiated a base contract scope for Stage 1 of approximately $1.5 million.

Key Tasks included in this base contract scope include:
• Project Commencement and Management
o Project Initiation
• Design Initiation
o Document Review
o Site Investigation & Existing Condition Verification
o Conceptual Design
• Design Development
o 100% Schematic Designo 100% design Development
• Construction Documents
o 50% and 75% Construction Documents
o Bidding and GMP Development
Not included in the base contract scope, but identified as potential additions to the Stage 1 contract, are the completion of 90% Construction Documents and the Final 100% PermittedConstruction Documents. City Staff and the Contractor opted to remove that scope of work from the base bid so it can be delivered only if there is concurrence the final design is accepted and the GMP will not exceed the City’s budget. This additional scope of work is identified as an additional contract item with a value of approximately $200,000.

City Staff recommends the City Council authorize the City Manager to finalize negotiations and execute the Stage 1 design and engineering services progressive design-build contract for the Cabrillo Mole Revitalization Phase 2 Project with Anderson Burton Construction, Inc. for a notto-exceed sum of $1.8 million.

The not-to-exceed sum of $1.8 million will allow the City Manager the option to increase the final scope to include completion of final construction documents as well as provide a small contingency for additional contracted services.

City Staff anticipate a contract draft will be prepared for review legal and Los Angeles Metro within the next week, and hope to issue a Notice to Proceed to Anderson Burton before June

30. Stage 1 of this project is tentatively scheduled to take approximately 355 days. Construction deliverables — demolition of the current Cabrillo Mole Terminal, installation of temporary facilities for the Cabrillo Mole Terminal tenants as well as procurement of long-lead items such as the electrical switch board — may be completed simultaneously to the Stage 1 scope of work.

City Council will be provided regular updates on the design process as well as retain finalapproval authority of the architectural design. After the design is approved, City Staff may request authorization to negotiate and award an amendment with Anderson for the Stage 2 construction services.

FISCAL IMPACTS: This Project is budgeted in the FY 25-26 CIP Budget — Project # 180003- 1 and will utilize a combination of grant and general funding resources.

GOAL ALIGNMENT: Infrastructure updates.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City will not have direction on how to proceed with the Cabrillo Mole Revitalization Project.

FOLLOW UP ACTION: Begin negotiations with Anderson and bring back a final contract for
City Council consideration.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENT: None.

CITY OF AVALON CITY COUNCIL
MEETING DATE: June 16, 2026 AGENDA ITEM:

ORIGINATING DEP: Finance CITY MANAGER: Jj
PREPARED BY: Matthew Baker, Finance Director
SUBJECT: Proposed Fiscal Year 2026-27 Budget
RECOMMENDED ACTION(S): Continue discussing the proposed Fiscal Year 2026-27 Budget.

If consensus, adopt the resolution establishing the City budget for Fiscal Year 2026-27.

REPORT SUMMARY: During the preceding three City Council meetings, Staff presented draft versions of the proposed Fiscal Year 2026-27 operating and capital budgets as summarized below:
• April 19, 2026 — Discussion of beginning reserve estimates, year-to-date revenue estimates, projected revenues and preliminary operating budgets for the upcoming fiscal year
• May 4, 2026 — Discussion of operating budgets for çeneral Fund and Harbor Fund, as well as proposed staffing levels
• May 1 9, 2026 — Discussion of operating budgets for Sewer, Saltwater, Solid Waste, and Internal Service Funds
Copies of these presentations and draft budget are available on the Finance Department’s webpage (https://www.cityofavalon.com/1 66/Budgets). Based on the input received during these study sessions, Staff is presenting the proposed Fiscal Year 2026-27 Operating and Capital Budget for City Council to review and consider for adoption. The proposed budget also includes the City’s Budget and Fiscal Policies with no significant updates from the previously adoptedversion.

The proposed budget includes expenditures totaling $69.84 million, including operatingexpenditures of $38.23 million, capital outlays of $23.57 million, and internal service chargesand transfers of $8.03 million. The proposed budget represents a 10.9% increase from the previous fiscal year.

The budget proposes increases in operating expenditures of $1 .22 million or 3.3%. Salaries and benefits account for 33.9% of operating expenditures and are proposed to increase by $651 thousand or 5.3%. The increase is partially attributable to increases in unfunded pension liability expenses of $131 thousand or 10.4%, in addition to wage and benefit increases as approved inthe memorandums of understanding (MOUs) with the City’s bargaining units adopted during the current fiscal year. The proposed budget does not include any new full-time positions but increases the number of budgeted part-time hours available for Recreation, Harbor Patrol, and Public Works. While staffing levels remain below pre-pandemic levels, this approach reflects the City’s commitment to delivering a high-level of service both efficiently and sustainably.

Contracted services represent 49.3% of the operating budget and are budgeted to increase by $419 thousand or 2.3%, with increases driven by inflation adjustment clauses in contracts. Maintenance and operations account for the remaining 16.8% of operating expenditures and are budgeted to increase by 3.1%. The overall modest increase in the proposed operating budgets further demonstrates the City’s prudent use of public funds. The increase in the proposed budget is driven by increases in capital outlays, with several major capital projects scheduled for construction in the upcoming fiscal year.

GOAL ALIGNMENT: Adopt a balanced City budget.CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: City departments would have to operate without the legal authority conveyed by adoption of the budget. The Fiscal Year 2025-26 budget would continue to govern City expenditures.

FOLLOW UP ACTION: Adopt the attached resolution establishing the budgets for all funds and departments and approve the City’s Budget and Fiscal Policies.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS: Proposed Fiscal Year 2026-27 Budget, Resolution RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
AVALON ADOPTING THE BUDGET FOR FISCAL YEAR 2026-27
WHEREAS, the City Manager prepared and submitted the Proposed Fiscal Year 2026- 27 Budget and Capital Improvement Program (CIP) to the City Council; and WHEREAS, the proposed Fiscal Year 2026-27 operating expenditure budget for all funds and departments totals of $38,233,776, and the Capital Improvement Program with project expenditure budget totals of $23,572,750; and
WHEREAS, the proposed expenditures are offset by revenues and prudent use of available reserves; and
WHEREAS, the proposed budget includes the annual update to the City of Avalon’s Treasurer’s Statement of Investment Policy; and
WHEREAS, the proposed budget includes the annual update of City of Avalon’s Budget and Fiscal Policies; and
WHEREAS, the City Council held three public budget study sessions, and a public hearing to consider public comment on the proposed budget; and WHEREAS, the City Council voted to adopt the Proposed Fiscal Year 2026-27 City budget;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF AVALON AS FOLLOWS:

Section 1. The proposed budget for Fiscal Year 2026-27, including the operating budgets, capital budgets, expenditures, revenues and transfers set forth therein are approved and adopted.

Section 2. The amount of Fiscal Year 2026-27 budget for each account of the budget may be drawn upon warrants in payment of demands in accordance with the provisions of California Government Code 32708 and 32709.

PASSED AND ADOPTED BY the City Council of the City of Avalon, Avalon, California, held on this 16th day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Ann H. Marshall, Mayor
ATTEST:

City Clerk
City of Avalon
Fiscal Year 2026-2027 Operating and Capital Budget

TABLE OF CONTENTS
Introduction6
Reader's Guide8
Budget Timeline 12
Community Profile 14
Demographics 16
Organizational Structure 21
Funds Summary Overview 24
General Fund 28
Law Enforcement 39
Fire Department 41
Public Works 44
Building and Planning 47
Recreation and Community Services 50
Other General Fund Activity 54
Housing Authority 57
Local Transportation 61
Nonmajor (Special Revenue) Funds 65
Street Administration 68
Traffic Safety 72
Harbor Fund 76
Harbor Operations 86
Salaries and Benefits Fund 103 91
Contract Services Fund 103 94
Maintenance and Operations Fund 103 96
Harbor Capital 98
Fuel Dock 104
Sewer Fund 106
Saltwater Fund 111
Solid Waste Fund 116
Avalon Transit 121
Internal Service Funds 125
General Administration 127
Insurance 134
Vehicle Maintenance 137
Successor Agency 141
Hospital Fund 144
Capital Improvement Plan 148
One Year Plan 149
Multi-Year Plan 154
Project Types 162
Departments 169
Capital Projects 176
Administration 177
206 East Whittley Housing Complex 178
Civic Center Lo Mod Housing Complex 179
Grinder / Chipper Replacement 180
IT Improvements 181
Pebbly Beach Landfill Expansion Project 182
CIP 184
Annual Storm Drain Improvements 185
Annual Traffic and Transportation Projects 186
Burma Trail Retaining Wall 187
City Hall Roofing Complex 188
Civic Center Workforce Housing 189
Five Corners Pedestrian Improvement Project 190
Maintenance Yard Upgrade 192
Pebbly Beach Road Rip Rap Revetment 193
Fire 194
Electric Stretcher 195
Fire Classroom EOC 196
Fire Command 1 198
Fire Engine 1 199
Fire Engine 2 200
Fire Engine 7 201
Fire Rescue 10 202
Fire Rescue 11 203
Fire Rescue 4 204
Fire Rescue 6 205
Fire Station Improvements 206
Fire Station Training Tower 207
Fire Truck 3 209
Fire Utility 9 210
Motorola APX 7000 Portable Radios 211
Self-Contained Breathing Apparatus (SCBA) 212
Harbor Admin 213
Anchor Chains 214
Cabrillo Mole Rehabilitation - Phase II 215
Casino Way Improvements 217
Casino Way Showers 218
Clubdock Dinghy Dock Pier Replacement 220
Crescent Avenue (Front Street) Electrical Improvements 221 Dinghy Dock Float Replacement 222
End Fload Rehabilitation 223
Float Construction (Float 6) 224
Float Ramps 225
Float Rehabilitation 226
Fuel Dock Roofing Improvements 228
Green Pier Decking 229
Green Pier Decking Electrical Upgrades 230
Green Pier Hoist 231
Harbor Master Building 232
Harbor Security Cameras 233
Mole Hoist 234
Pebbly Beach Road / Crescent Avenue "Elbow" Improvements 235 Recreation Barge 236
South Beach Seawall Rehabilitation 237
Vehicle Replacement 238
Public Works 239
Bonita Way Stairs 240
Building Facilities - Annual Improvements 241
Cemetery Improvements 242
City Hall Remodel 243
Citywide Street Paving Rehabilitation Project 244
Collection and Distribution System Projects 245
Guardrails 247
Step Beach Railing and Stair Renovation 248
Vac Truck Refurbishment 249
Vehicle Fleet H-2 250
Vehicle Fleet NEW 251
Vehicle Fleet S-1 252
Vehicle Fleet S-10 253
Vehicle Fleet S-23 254
Vehicle Fleet S-28 255
Vehicle Fleet S-5 256
Vehicle Fleet S-9 257
WWTP Treatment Plant Projects 258
Recreation 260
Avalon City Park - Playground Equipment 261
Avalon Kids Park - Fit Park Equipment 262
Avalon Kids Park - Gazebo 263
Avalon Kids Park - Restrooms 264
Community Tech Center 265
JMF Exercise Equipment 266
Joe Machado Field - Restrooms 267
Joe Machado Field - Roofing 268
Joe Machado Field - Shade Structure 269
Joe Machado Field - Turf 270
Knabe and Veteran's Park Revitalization 272
Palapa Beach 273
Park Landscaping Improvements 274
Appendix 275
Glossary 276
Financial Policies 283
Accounting and Financial Reporting 284
Budget Process 286
Structurally Balanced Budget 287
Revenue Policy 289
Expenditure Controls 291
General Fund Reserves 293
Enterprise Fund Working Capital Targets 295
Investment Policy 296
Investment Policy for Solid Waste Postclosure and Corrective Action Trust Fund 304 Credit Card Purchasing Policy 310
Transmittal Letter
Honorable Mayor, Members of the City Council, and Community Members of the City of Avalon, California:

I am pleased to present the Proposed Fiscal Year 2026–27 Operating and Capital Budget for the City of Avalon. This budget implements the direction provided by City Council and serves as the financial plan reflecting our shared commitment to providing efficient public services and responsible investment in the City’s infrastructure in a financially sustainable manner. The document has been prepared in accordance with state law, the Avalon Municipal Code, and the City Council’s adopted financial policies.

The proposed budget includes expenditures totaling $69.84 million, including operating expenditures of $38.23 million, capital outlays of $23.57 million, and internal service charges and transfers of $8.03 million. The proposed budget represents a 10.9% increase from the previous fiscal year.

The budget proposes increases in operating expenditures of $1.22 million or 3.3%. Salaries and benefits account for

33.9% of operating expenditures and are proposed to increase by $651 thousand or 5.3%. The increase is partially attributable to increases in unfunded pension liability expenses of $131 thousand or 10.4%, in addition to wage and benefit increases as approved in the memorandums of understanding (MOUs) with the City's bargaining units adopted during the current fiscal year. The proposed budget does not include any new full-time positions but increases the number of budgeted part-time hours available for Recreation, Harbor Patrol, and Public Works. While staffing levels remain below pre-pandemic levels, this approach reflects the City's commitment to delivering a highlevel of service both efficiently and sustainably. Contracted services represent 49.3% of the operating budget and are budgeted to increase by $419 thousand or 2.3%, with increases driven by inflation adjustment clauses in contracts.

Maintenance and operations account for the remaining 16.8% of operating expenditures and are budgeted to increase by 3.1%. The overall modest increase in the proposed operating budgets further demonstrates the City's prudent use of public funds.

While carefully managing operating costs, the City has been successful in obtaining grant funding, while leveraging existing reserves from increases in wharfage rates adopted over the last fiscal year, to fund several vital infrastructure projects in the harbor scheduled for construction during the upcoming fiscal year. The City anticipates construction of a 100-foot groin wall and repairs to the seawall to begin at South Beach during the fall, with sand replenishment to restore the beach in time for the next summer season. The funds provided in prior capital budgets for design and engineering enabled the City to successfully obtain $2.48 million in funding from the Los Angeles County Regional Park and Open Space District (RPOSD) Measure A Grant, accelerating the City's ability to bring South Beach back to the community and visitors alike. During the fall, the City also anticipates replacing the decking and existing electrical infrastructure on the Green Pleasure Pier, with $1.00 million in state funding provided by State Senator Lena Gonzales to assist with this project. Additional grant-funded projects in the Harbor, scheduled for construction in the fall, include the Clubdock Dinghy Dock Pier Replacement and End Float Replacement, with grant funding from the California Department of Boating and Waterways Boating Infrastructure Grant (BIG) program. Given the extended summer season and challenges with construction during the winter months, the fall will be a critical period with significant construction around the harbor. While there may be temporary disruptions, the resulting improvements will provide lasting value to the community for decades to come.

During the current fiscal year, the City issued a request for proposals for the design-build of the Cabrillo Mole Ferry Terminal and anticipates awarding the contract to begin the formal design phase in the coming weeks. This milestone marks nearly a decade of planning by the City, including the completion of significant substructure repairs to the concrete decking, steel grating, riprap and pilings. The City anticipates the design phase to cover approximately nine months, with construction anticipated to start during the fourth quarter of the upcoming fiscal year. During the first Introduction
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 6 half of the upcoming fiscal year, the City will be laying out temporary facilities to ensure minimal disruptions to the existing cross-channel and cruise ship operations at the Mole. The project is budgeted to cost approximately $20.0 million, with $7.5 million included in the proposed budget, and represents a significant investment in the community, particularly considering the City's overall size and resources available. Again, this project would not have been possible without years of capital planning by the City, leadership and direction from the City Council, and grant assistance from our partners at the Los Angeles County Metropolitan Transportation Authority (METRO) and the Federal Transit Administration.

In addition to these harbor projects, the City remains focused on critical infrastructure needs throughout the City. The City anticipates construction on the Pebbly Beach Road Revetment Project during the upcoming fiscal year, with the first phase of the project prioritizing critical repairs to the revetment and sea cave voids, as well as stabilizing and repaving the roadway. This roadwork is in addition to a major street-wide paving project addressing required repairs throughout town based on road condition assessments included in the proposed operating budget. Lastly, the City is working with its contracted partners to complete the necessary engineering and permitting to expand the capacity of the Pebbly Beach Landfill. The landfill is reaching capacity and the City is exploring all options to extend its useful life, with construction of a mechanically stabilized earth (MSE) retaining wall anticipated in the Fall of 2027. This project will provide capacity at the landfill for an additional twenty years. While the City has raised trash collection rates over the last several years to finance this critical project, the cost of not funding this project would ultimately have been much greater if the City-owned landfill was no longer available and trash had to be transported off the island by barge.

These accomplishments reflect the combined impact of the clear direction and leadership from the City Council, the prudent and disciplined management of public funds by City Staff, and the thoughtful planning and collaboration of Management and key stakeholders. Together, these efforts have enabled the City to advance critical infrastructure projects, secure significant grant funding, and strategically allocate resources in a manner that strengthens community services while supporting long‑term sustainability.

The preparation of this budget would not have been possible without the dedication and collaboration of many individuals. I would like to extend my sincere appreciation to the City Council for its guidance and leadership, to Matthew Baker, Finance Director, and to Department Leaders and Staff for their thoughtful analysis and responsible stewardship of resources, and to our community partners for their ongoing engagement and support. Their collective efforts have been instrumental in developing a balanced and forward‑looking budget that continues to advance the City’s priorities and serve the community effectively.

Sincerely,
David Maistros
City Manager
Introduction
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 7 Budget Overview
Each year, the City Council adopts, by formal resolution, an annual budget. This document serves as a financial plan, identifying the projected allocation and application of resources over the budget cycle. The published Operating and Capital Budget is designed to present summary information about the City’s financial plans for the year in a userfriendly format. The budget is organized by fund and department. Expenditures are displayed and subtotaled by the following types: Salaries & Benefits; Maintenance & Operations; Contract Services; and Capital Outlays.

Line-item budget development is accomplished through the City’s online budget building tool, which allows each department to build its operating budget using computerized worksheets. The individual departments are directly responsible for developing the Maintenance & Operations and Contract Services expenditure budgets. Salary & Benefit information is calculated and entered by the Finance Department based on salary schedules and applicable memorandums of understanding (MOU). New budget requests (e.g. new personnel, services, equipment) are identified by the Finance Director and presented separately for the City Manager’s review and approval before becoming part of the proposed operating budget. The Finance Director also provides the City Manager with revenue projections. These projections are reviewed with the department budget requests to determine available funding levels for the upcoming fiscal year. The City Manager and Finance Director then hold meetings with the departments to review the operating budgets and additional budget requests. Once the budget data has been reviewed and any changes have been made by the Finance Department, a proposed budget document is prepared. After review and approval by the City Manager, the proposed budget document is presented to City Council, with at least one study session and public presentation, prior to adoption. During the fiscal year, the budget can be amended as necessary by City Council to meet the City’s needs. The City’s budget and fiscal policies outline internal controls for transfers within budgeted accounts.

Reader's Guide
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 8 Basis of Accounting
The City budget is maintained using the modified accrual basis of accounting, which recognizes expenditures when the related fund liability is incurred. Revenues are recognized when they become both they become measurable and available. Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For budget presentation purposes, the City records capital outlays as an expense to assist with budgetary control. At year-end, the amounts are converted to capital assets, as appropriate, for presentation in audited financial statements. The City’s governmental funds are also reported on a modified accrual basis of accounting in the City’s Annual Comprehensive Financial Report (ACFR) fund statements; however, the Enterprise and Internal Service Funds are reported on a full accrual basis in the ACFR.

The City’s accounting system is maintained on a fund basis, in accordance with governmental accounting standards.

Each of the City’s funds is considered a separate accounting entity with a self-balancing set of accounts that record assets, liabilities, fund equity, revenues and expenditures. Funds are established and segregated for the purpose of recording specific programs or attaining certain objectives in accordance with special regulations restrictions, or limitations. Funds are classified into one of three categories: governmental (general fund, special revenues), proprietary (enterprise and internal service), and fiduciary (trust or agency). Governmental funds account for activities generally associated with local government operations. Proprietary funds are financed and operated in a manner similar to private business enterprises, where the intent is to recover the costs of providing goods and services from users through charges for services. Fiduciary funds are utilized in situations where the government is acting in a fiduciary capacity as a trustee.

The operating budget document includes citywide information as well as information specific to each fund and each department. The City receives revenue from numerous sources, many of which have restrictions on how funds can be used. Separate funds are established to account for the different types of revenues and their allowable uses. The following Classification of Funds describes, in detail, the various types of funds and their purpose as established by the City of Avalon.

Reader's Guide
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 9 Types of Funds

GOVERNMENTAL FUND TYPES
General Fund is used to account for resources traditionally associated with general government which are not required to be accounted for in a separate fund, including: sales tax, property tax, transient occupancy tax, licenses and permits, fines and forfeitures. In general, these funds are allocated at the discretion of the City Council. This revenue is used to support citywide services such as public safety, community services, planning, and public works. Other nonmajor funds are aggregated with General Fund activity for budget presentation purposes.

Special Revenue Funds are used to account for the proceeds of revenues that are designated for specific or restricted uses. These funds include gas tax funds from the State, sales tax funds from the County dedicated for public transportation, and Community Development Block Grant (CDBG) funds from the federal government. The Street Administration Fund is used to account for the City’s share of State and County gasoline tax collection in accordance with the provisions of the State of California Streets and Highway Code. Revenues are disbursed by the State based on population and must be used towards the maintenance and repair of City streets. The Traffic Safety Fund is used to account for fines collected and are used to fund eligible traffic safety and code enforcement expenditures.

Expenditures in excess of fines collected are covered through budgeted transfers from the General Fund. The Community Development Block Grant (CDBG) Fund is used to account for the receipts and expenditures of CDBG funds received from the U.S. Department of Housing and Urban Development. The Local Transportation Fund is used to account for the proceeds from Proposition A and C and Measures R and M, additional sales tax generated by the approval of Los Angeles County voters administered by the Los Angeles County Metropolitan Transit Authority (MTA) for transportation-related projects, collectively referred to as Local Return funds. These funds are used to support the cross-channel commuter subsidy program and local public transportation, including fixed-route and dial-a-ride services. The Avalon Housing Authority Fund is used to account for activity associated with the City’s continued housing operations. This fund was created effective February 1, 2012 as a result of legislation enacted by the State of California.

PROPRIETARY FUND TYPES
Enterprise Funds are established to function as self-supporting operations wherein expenditures are entirely offset by fees or charges for services. Revenues from fees or charges are accounted for in separate enterprise funds and can only be used to pay for expenses related to those services. The Harbor Fund is used to account for all harbor operations, including the fuel dock. The Sewer Fund was established to receive and disburse funds collected through sewer service charge fees and sewer facilities charges. This fund is used for the operation and maintenance of sewer disposal facilities and the financing of construction for sewer outlets. The Saltwater Fund was established to receive charges for the operation of the City’s saltwater pumping plants and systems. The Solid Waste Fund was established to account for solid waste collection and disposal costs. The Avalon Transit Fund was established to account for the portion of the City’s local public transportation operations not covered by the Local Transportation Fund.

Internal Service Funds are established to account for a variety of business services provided by one City department (or division) to other City departments. Departments are charged for these services based on their respective utilization. The General Administration Fund is used to account for general administration costs, including the City Manager’s office, finance, information technology, legal, provided to other funds and departments on a cost reimbursement basis. The Insurance Fund is used to account for the City’s general liability program. The Vehicle Maintenance Fund is used to account for the operation, maintenance, and replacement of City vehicles. Revenues are generated from each department’s share of operating costs.

FIDUCIARY FUND TYPES
Private Purpose Trust Fund accounts for various assets held in trust for other governments, individuals, or the public at large. The funds are custodial in nature and do not involve measurement of results of operations. The Successor Reader's Guide
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 10 Agency Fund accounts for activities related to the Successor Agency to Avalon Community Improvement Agency (ACIA) and the revenue received from the Redevelopment Property Tax Trust Fund (RPTTF) to fund the recognized obligations of ACIA and administrative costs.

Reader's Guide
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 11 Budget Timeline
Budget Calendar
 January 2026
Management and City Staff begin discussions regarding staffing and the operating budgets for the upcoming fiscal year.
 February 2026
Finance Department builds out labor budgets based on existing MOUs and current staffing levels.

Finance Director presents a mid-year update of the current year's budget, including a summary of midyear amendments and any additional requested amendments identified during this review.  March 2026
Department Leaders submit staffing changes and operating budget requests to the City Manager and Finance Director for review and approval. Finance Department prepares initial revenue estimates based on current year actuals, forecasts from other government agencies and City consultants, and other factors (e.g. temporary closures for remodeling, CPI increases in lease agreements, new businesses, etc.).
 April 2026
City Manager and Finance Director discuss proposed changes with Department Leaders to finalize staffing and operating budgets for the upcoming fiscal year. City Management reviews Capital Improvement Program to confirm the status of identified projects and update to include new projects identified during the current year.
 April 21, 2026
First presentation to City Council discussing current year revenue estimates, estimated fund balances at the start of the next fiscal year, and initial revenue estimates.  May 2026
City Management finalizes Capital Improvement Program for the next fiscal year.  May 4, 2026
Second presentation to Council to discuss proposed staffing changes and operating budgets for the General Fund and Harbor Fund.
 May 19, 2026
Third presentation to Council to discuss operating budgets for Sewer, Saltwater, Solid Waste, and Internal Service Funds (General Administration, Insurance, Vehicle Maintenance).  June 2, 2026
Fourth presentation to Council to discuss proposed Capital Projects included in the Capital Improvement Program for the upcoming fiscal year.
 June 16, 2026
Budget Timeline
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 12 Proposed Operating and Capital Budget presented to City Council for review.  June 30, 2026
City Council adopts the Operating and Capital Budget.

Budget Timeline
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 13 Community Profile
The City of Avalon is the only incorporated community located on Santa Catalina Island, approximately twenty-two miles off the coast of Southern California. The City is situated on the leeward side of the island around Avalon Bay, and its jurisdictional boundaries occupy just under three square miles or less than five percent (5%) of the entire island. The City serves a population of approximately 3,400 residents and welcomes over one million visitors each year through its picturesque harbor, with most residents and visitors arriving through the City’s Cabrillo Mole Ferry Terminal.

The City of Avalon is located entirely within the coastal zone, and the local economy is centered on tourism. As most of the City is already built-out, new development primarily comes from infill which helps to preserve the compact, walkable character of the City. The autoette, which is smaller and travels at lower speeds compared to traditional automobiles, is the most common method of transportation in the City and the City closely regulates both the size and number of vehicles permitted to facilitate congestion and encourage active transportation. The City’s Green Pleasure Pier serves as the hub for commercial and recreational ocean-based activities, including fishing, scuba diving, parasailing and kayaking. In addition to the natural open space areas, the City offers multiple parks, picnic areas, and public beaches for both residents and visitors to enjoy.

Incorporated on June 26, 1913, as a general law city, the City operates under the Council-Manager form of government with a five-member City Council elected by the citizens of Avalon. The Mayor is directly elected to serve a two-year term and Council Members are elected at large to alternating four-year terms. The City Council serves as the policymaking body of the City; adopting the budget, enacting local ordinances, appointing committees, and directing such actions as required to provide for the general welfare of the community. The City Manager, appointed by the City Council, is responsible for the administration of all City affairs and the implementation of all policies and ordinances established by the City Council. The City Attorney serves under contract and is appointed by the City Council. All other staff are appointed by the City Manager.

History of the City
Prior to colonization, the area around Avalon Bay was inhabited for thousands of years by the Tongva (Gabrielino) tribe, who called the island Pimu or Pimugna. The Tongva had settlements all over the island, including in present-day Avalon. They were renowned for their mining and working with soapstone found on the island, and traveled frequently to the mainland for trade.

The first European to record seeing the island was Juan Rodriguez Cabrillo in 1542 during a Spanish expedition.

Another Spanish explorer, Sebastian Vizcaino, arrived at the island on the eve of Saint Catherine's Day (November 24) of 1602 and named the island in the saint's honor. The island was used for ranching, mining, whaling, and otter hunting up until the end of the 19th century.

In 1887, real estate developer George Shatto purchased Catalina Island from the estate of James Lick with the vision of turning it into a coastal resort. Shatto named the settlement Avalon, after the mystical isle of Avalon from Arthurian legend as featured in Lord Tennyson's poem Idylls of the King. He built the first pier and the first hotel and mapped out the streets used to this day. While establishing tourism in Avalon, Shatto defaulted on his loan and the island returned to the Lick estate. The sons of Phinneas Banning bought the island in 1891 and established the Santa Catalina Island Company to further develop it as a resort. The City of Avalon was incorporated during this period and purchased the Green Pleasure Pier from the Santa Catalina Island Company in 1914.

In 1919, William Wrigley Jr. bought a controlling interest in the Santa Catalina Island Company and invested heavily in infrastructure and tourism, including the construction of the Catalina Casino in 1929. As a result, Avalon became a popular filming location and favorite retreat for Hollywood stars. During World War II, the island was closed to tourism and was repurposed for military training. After the war, the City reopened to tourism and, in 1968, the City constructed Community Profile
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 14 the Cabrillo Mole Ferry Terminal to better accommodate arriving visitors on steamer ships. In 1988, the City began welcoming cruise ship visitors to the City. Today, the City welcomes over one million visitors annually through its harbor, arriving via private boats and charters, cross-channel carriers, and cruise ship vessels.

Picture of Avalon Harbor - Circa 1913 Picture of Avalon Harbor - Present Day Community Profile
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 15 Demographics
Population

TOTAL POPULATION
3,338
-1.04%
vs. 2023

GROWTH RANK
455 out of 506 Municipalities in California
* Data Source: U.S. Census Bureau American Community Survey 5-year Data and the 2020, 2010, 2000, and 1990 Decennial Censuses

DAYTIME POPULATION
3,364
Daytime population represents the effect of persons coming into or leaving a community for work, entertainment, shopping, etc. during the typical workday. An increased daytime population puts greater demand on host community services which directly impacts operational costs. * Data Source: American Community Survey 5-year estimates 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2750
3000
3250
3500
3750
4000
Demographics
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 16

POPULATION BY AGE GROUP
Aging affects the needs and lifestyle choices of residents. Municipalities must adjust and plan services accordingly. * Data Source: American Community Survey 5-year estimates 249
202
94 228
129
440
538
195
220
243
506
213
81 <5 5-9 10-14 15-19 20-24 25-34 35-4445-54 55-5960-6465-74 75-84 >85 0 100
200
300
400
500
600
Demographics
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 17 Household

TOTAL HOUSEHOLDS
1,374
Municipalities must consider the dynamics of household types to plan for and provide services effectively. Household type also has a general correlation to income levels which affect the municipal tax base. 4%
higher than state average
-1%
lower than state average
35%
higher than state average
-2%
lower than state average
* Data Source: American Community Survey 5-year estimates Family Households
56%
Married Couples
49%
Singles
32%
Senior Living Alone
10%
Demographics
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 18 Economic
Household income is a key data point in evaluating a community’s wealth and spending power. Pay levels and earnings typically vary by geographic regions and should be looked at in context of the overall cost of living.

HOUSEHOLD INCOME
Above $200,000
3%
-85.44%
lower than state average
Median income
$105,139

6.07%
higher than state average
Below $25,000
9%
-28.69%
lower than state average
* Data Source: American Community Survey 5-year estimates Over $200,000
$150,000 to $200,000
$125,000 to $150,000
$100,000 to $125,000
$75,000 to $100,000
$50,000 to $75,000
$25,000 to $50,000
Below $25,000
Demographics
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 19 Housing
2024 MEDIAN HOME VALUE
$936,000
* Data Source: 2024 US Census Bureau, American Community Survey. Home value data includes all types of owner-occupied housing.

HOME VALUE DISTRIBUTION
* Data Source: 2024 US Census Bureau, American Community Survey. Home value data includes all types of owner-occupied housing.

HOME OWNERS VS

RENTERS
Avalon State Avg.
49%
Rent
51%
Own
44%
Rent
56%
Own
* Data Source: 2024 US Census
Bureau, American Community
Survey. Home value data
includes all types of owneroccupied housing.
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
500K
600K
700K
800K
900K
1,000K
1,100K
85 285
72 69
0 0
0 0
0 0
0 > $1,000,000
$750,000 to $999,999
$500,000 to $749,999
$400,000 to $499,999
$300,000 to $399,999
$250,000 to $299,999
$200,000 to $249,999
$150,000 to $199,999
$100,000 to $149,999
$50,000 to $99,999
< $49,999
0 100 200 300
Demographics
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 20 Organizational Chart
City of Avalon Organizational Chart
Citizens of Avalon
Avalon City Council Mayor Anni Marshall, Mayor Pro Tem Lisa Lavelle Councilmembers Ponce, De La Rosa, and Schickling
City Manager David Maistros
Administration Administration, City Clerk, IT, Code Enforcement, Grants Management, Vehicles and HRFinance AR, AP, Payroll, Business Licensing,
Financial Reporting, and Budgeting
Community Services
Youth Sports, Recreation Programming
Senior Programming, and
Special Events
Public Safety Avalon Fire Department
LA County Sherriff's Department (contracted)
Building and Planning Permitting, Inspections, Zoning, Development and Transient Rental
Licensing
Public Works
Facility Maintenance, Public
Landscaping,
Infrastructure Repairs and
Fleet Management
Harbor
Security, Mooring Assignment, Dock
Scheduling, Waterside Permitting, and Maintenance
City Attorney
Scott Campbell (BBK)
City Treasurer Oley Olsen
Organizational Structure
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 21 Full-Time Equivalent (FTE) Positions by
Department
Department Position FY24 FY25 FY26 FY27 Change in FTE
Elected 6.00 6.00 6.00 6.00
Mayor 1.00 1.00 1.00 1.00 -
Councilmember 4.00 4.00 4.00 4.00 -
Treasurer 1.00 1.00 1.00 1.00 -
Administration 11.00 11.00 12.50 12.72
City Manager 1.00 1.00 1.00 1.00 -
Assistant City Manager 1.00 1.00 1.00 1.00 -
City Clerk 1.00 1.00 1.00 1.00 -
Information Technology (IT) Manager 1.00 1.00 1.00 -
Senior Management Analyst - HR 1.00 1.00 1.00 1.00 -
Senior Management Analyst 1.00 1.00 1.00 1.00 -
Administrative Analyst 2.00 1.00 1.00 1.00 -
Senior Administrative Assistant 2.00 2.00 2.00 2.00 -
Administrative Assistant (PT) 0.50 0.72 0.22
Lead Code Enforcement Officer 1.00 1.00 1.00 1.00 -
Code Enforcement Officer 1.00 1.00 1.00 1.00 -
Parking Enforcement Officer 1.00 1.00 -
Finance 5.00 5.00 5.00 5.00
Finance Director 1.00 1.00 1.00 1.00 -
Senior Accountant 1.00 -
Accounting Technician III 1.00 1.00 1.00 1.00 -
Accounting Technician II 2.00 3.00 3.00 3.00 -
Fire 10.00 10.00 10.50 10.72
Fire Chief 1.00 1.00 1.00 1.00 -
Fire Captain 3.00 3.00 3.00 3.00 -
Fire Engineer 3.00 3.00 3.00 3.00 -
Firefighter 3.00 3.00 3.00 3.00 -
Administrative Assistant (PT) 0.50 0.72 0.22
Community Services 6.12 4.26 4.28 5.30
Community Services Director 1.00 1.00 -
Community Services Manager 1.00 1.00 -
Community Services Supervisor 1.00 1.00 -
Recreation Coordinator 1.00 1.00 -
Recreation Leader (PT) 2.16 1.44 1.28 1.90 0.62
Recreation Aide (PT) 0.82 1.00 1.40 0.40
Maintenance Worker III 1.00 -
Maintenance Worker I (PT) 0.96 -
Planning 2.00 2.00 1.00 1.00
Building Official 1.00 1.00 -
Senior Administrative Assistant 1.00 1.00 1.00 1.00 -
Public Works 16.96 19.92 18.96 19.75
Public Works Director 1.00 1.00 1.00 1.00 -
Project Manager 1.00 1.00 -
Maintenance Superintendents 2.00 2.00 2.00 2.00 -
Organizational Structure
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 22 Maintenance Lead Worker 1.00 1.00 1.00 -
Maintenance Worker III 3.00 7.00 8.00 8.00 -
Maintenance Worker II 8.00 4.00 2.00 2.00 -
Maintenance Worker I (PT) 0.96 1.92 0.96 1.75 0.79
Garage Lead Worker 1.00 1.00 1.00 1.00 -
Senior Equipment Mechanic 1.00 1.00 1.00 1.00 -
Equipment Mechanic 1.00 1.00 1.00 -
Harbor 21.05 21.67 21.48 22.22
Harbor Master 1.00 1.00 1.00 1.00 -
Assistant Harbor Master 1.00 1.00 -
Harbor Patrol Supervisor 1.00 1.00 2.00 2.00 -
Harbor Patrol Officer II 4.00 3.00 2.00 2.00 -
Harbor Patrol Officer I 4.00 6.00 7.00 7.00 -
Harbor Patrol Officer I (PT) 4.04 4.23 4.04 4.62 0.58
Senior Harbor Operations Assistant 1.00 1.00 -
Senior Administrative Assistant 1.00 1.00 -
Maintenance Lead Worker 1.00 1.00 1.00 1.00 -
Harbor Maintenance Worker 2.00 2.00 2.00 2.00 -
Parking Control Maintenance 1.00 -
Harbor Sanitation Worker (PT) 1.01 1.44 1.44 1.60 0.16
Total 78.13 79.85 79.72 82.71 2.99
Organizational Structure
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 23 Funds Summary Overview
The City’s accounting system is maintained on a fund basis, in accordance with governmental accounting standards.

Each of the City’s funds is considered a separate accounting entity with a self-balancing set of accounts that record assets, liabilities, fund equity, revenues and expenditures. Funds are established and segregated for the purpose of recording specific programs or attaining certain objectives in accordance with special regulations, restrictions, or limitations.

The charts below are intended to be illustrative of the relative size of each fund and the general sources and uses of funds for the City.

The proposed Fiscal Year Operating and Capital Budget includes expenditures totaling $69,840,241 across all funds, including transfers and internal service charges.

Funds Summary Overview
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 24 Major Funds
The City of Avalon utilizes the
following major funds:

Governmental Funds:

General Fund
Housing Authority
Local Transportation
Hospital Fund
Proprietary Funds:

Harbor Fund
Sewer Fund
Saltwater Fund
Solid Waste Fund
Avalon Transit Fund
Internal Service Funds
Fiduciary Fund:

Successor Agency Fund
Nonmajor funds include various
Special Revenue Funds, including
the Street Administration Fund
funded through various gas taxes,
Traffic Safety Fund funded through
citations and transfers from the
General Fund, and the Community
Development Block Grant (CDBG)
Fund funded through specific grant
revenues.

The chart reflects the operating
budgets of each major fund,
excluding capital outlays, transfers,
and internal service charges to
demonstrate the relative size of
each major fund.

City of Avalon Major Funds - Operating Budgets
General Fund (Budgeted) $10,865,154 (28.42%)
Harbor Fund (Budgeted) $8,019,273 (20.97%)
Internal Service (Budgeted) $6,006,853 (15.71%)
Sewer Fund (Budgeted) $2,932,464 (7.67%)
Hospital Fund (Budgeted) $2,800,000 (7.32%)
Solid Waste Fund (Budgeted) $2,654,016 (6.94%)
Successor Agency (Budgeted) $1,837,108 (4.80%)
Local Transportation (Budgeted) $1,452,440 (3.80%)
Saltwater Fund (Budgeted) $719,255 (1.88%)
Nonmajor Fund (Budgeted) $630,333 (1.65%)
Avalon Transit (Budgeted) $247,305 (0.65%)
Housing Authority (Budgeted) $69,577 (0.18%)
Funds Summary Overview
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 25 Sources of Revenue
Charges for Services account for over 40% of
revenues received by the City across all funds.

Charges for Services include cross channel
and cruise ship wharfage, nightly moorings,
and annual user charges for sewer, saltwater
and solid waste services.

Grants and intergovernmental revenues refer
to financial resources provided by another
government agency to the City to offset
capital costs or to fund essential services. For
example, the City of Avalon receives funding
from the County of Los Angeles to offset the
costs of providing local public transportation
and commuter subsidies to Avalon residents.

Transient occupancy tax (TOT), a 12% tax on
gross receipts on rentals for fewer than 30
nights, is the largest single source of revenue,
representing over 15% of revenues received
across all funds.

Sources of Revenue
Charges for Services... (Budgeted) $20,266,930
(37.31%)
Grants (Budgeted) $4,080,000 (7.51%)
Intergovernmental (Budgeted) $11,017,440
(20.28%)
Licenses and Permits... (Budgeted) $391,500
(0.72%)
Other Tax (Budgeted) $2,805,193 (5.16%)
Transient Occupancy ... (Budgeted) $7,725,000
(14.22%)
Admission Tax (Budgeted) $1,106,500 (2.04%)
Sales Tax (Budgeted) $2,350,145 (4.33%)
Transfers In (Budgeted) $1,235,000 (2.27%)
Gain on Disposal of ... (Budgeted) $0 (0.00%)
Investment Income (Budgeted) $807,000 (1.49%)
Fines and Forfeiture... (Budgeted) $110,000 (0.20%)
Other Revenues (Budgeted) $659,000 (1.21%)
Property Tax (Budgeted) $1,761,958 (3.24%)
Funds Summary Overview
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 26 Uses of Funds
The uses of funds for the City can be classified
into four general categories:

Salaries and Benefits — Spending
related to labor, including wages,
overtime, employer taxes, insurance
benefits, workers' compensation,
pension contributions, and funding
towards existing pension liabilities.

Spending in this category is driven by
negotiated benefits as outlined in
Memorandums of Understanding
(MOUs) between the City and various
labor unions and associations.

Maintenance and Operations —
Spending related to the ongoing
operating activities of the City, including
utilities, rent, and supplies.

Contract Services — Spending related to
contracted services not performed by
City Staff, including law enforcement
and lifeguard services contracted
through Los Angeles County, marketing
and promotion through the allocation of
TOT to the local tourism authority, and
operation contracts for the waste water
treatment plant and the City-owned
landfill.

Capital Outlay — Spending related to the
purchase or acquisition of capital assets
is initially recorded as an expense for
budget presentation purposes and
converted to capital assets, as
appropriate, for presentation in audited
financial statements.

Internal Services — Assessments
charged to funds for their proportional
share of costs for General Administration,
Insurance, and Vehicle Maintenance.

Transfers Out - Subsidies from the
General Fund to support funds that are
not fully-funded through taxes or
charges for services.

Uses of Funds
Transfers Out (Budgeted) $1,685,000 (2.41%)
Capital Outlay (Budgeted) $23,572,750 (33.70%)
Maintenance & Operat... (Budgeted) $6,414,593
(9.17%)
Contract Services (Budgeted) $18,846,408
(26.95%)
Internal Services (Budgeted) $6,448,715 (9.22%)
Salaries & Benefits (Budgeted) $12,972,775
(18.55%)
Funds Summary Overview
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 27 General Fund
The General Fund is the main operating fund for the City. It accounts for sources and uses of resources that primarily are discretionary to the City Council in the provision of activities, programs, and services deemed necessary and desirable by the community. The major revenue sources for this fund are transient occupancy tax (TOT), sales tax, admission tax, property tax, licenses, charges for services, permits and fees. Expenditures are made for public safety (including law enforcement and fire), public works, planning, and other community services.

Summary
The table below compares budget-to-actual revenues and expenditures for the last three fiscal years.

Revenues vs Expenditures Summary
While expenditures were budgeted to exceed revenue estimates based on the adopted budgets over the last three fiscal years, actual revenues exceeded estimates and actual expenditures were less than budgeted in Fiscal Year 2024 and 2026, resulting in a slight increase in fund balance in the General Fund over the period. Similar to prior years, expenditures exceed revenues in the proposed FY 2026-27 Budget due to significant capital outlays to be funded utilizing reserves. However, recurring operating expenses are covered by existing operating revenues, reflecting a structurally balanced budget, with reserves being utilized to cover one-time capital outlays.

Visitor-driven tax revenues make up the majority of General Fund revenues. As highlighted in this chart, the City has historically adopted a conservative approach to revenue estimates for visitor-driven tax revenues and fees, due to its reliance on tourism demand. Visitor-driven revenues fluctuate year-to-year based on external economic conditions and this approach has allowed the City to operate in a sustainable manner, building reserves when actual revenues exceed budget estimates.

Revenue Actual Revenue Budgeted Expenditures Actual
Expenditures Budgeted
2024 2025 2026 2027
0 $5M
$10M
$15M
$20M
$25M
$30M
General Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 28 Comprehensive Fund Summary
Revenues by Revenue Source
The table below compares actual revenues received in the past three fiscal years to revenues estimated for the upcoming fiscal year. FY2026 revenues are estimated based on actuals received through April 30, 2026 and estimated revenues for the last two months of the fiscal year.

Comprehensive Fund Summary
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Beginning Fund Balance $15,791,628 $15,791,628 $15,791,628 $16,094,268 Revenues
Property Tax $1,585,000 $1,585,000 $1,874,925 $1,761,958 Sales Tax $1,440,000 $1,440,000 $1,553,000 $1,550,145
Admission Tax $846,500 $846,500 $951,000 $881,500
Transient Occupancy Tax $7,525,000 $7,525,000 $8,200,500 $7,725,000 Other Tax $740,000 $740,000 $790,820 $775,343
Licenses and Permits $386,500 $386,500 $676,050 $391,500 Intergovernmental $5,812,225 $5,812,225 $3,955,976 $2,365,000 Charges for Services $600,500 $600,500 $604,500 $584,000 Other Revenues $68,750 $68,750 $268,000 $7,000
Fines and Forfeitures $10,500 $10,500 $11,500 $10,000
Investment Income $350,500 $350,500 $450,500 $400,000
Transfers In - - - -
Total Revenues $19,365,475 $19,365,475 $19,336,771 $16,451,446 Expenditures
Salaries & Benefits $4,564,903 $4,710,003 $4,613,726 $4,560,431 Internal Services $3,053,563 $3,053,563 $3,053,563 $3,375,382 Contract Services $4,645,340 $4,670,340 $4,813,804 $4,973,500 Maintenance & Operations $1,381,052 $1,439,052 $1,228,038 $1,331,223 Capital Outlay $9,660,000 $10,123,808 $4,795,000 $5,095,000 Transfers Out $880,000 $880,000 $530,000 $1,685,000
Total Expenditures $24,184,858 $24,876,766 $19,034,131 $21,020,536 Total Revenues Less
Expenditures
-$4,819,383 -$5,511,291 $302,640 -$4,569,090
Ending Fund Balance $10,972,245 $10,280,337 $16,094,268 $11,525,178 General Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 29 Historical Comparison
Fines and Forfeitures Transfers In Other Revenues
Licenses and Permits Charges for Services Investment Income Other Tax Admission Tax Sales Tax
Property Tax Intergovernmental Transient Occupancy Tax
Visitor-driven tax revenues, including Transient Occupancy Tax (TOT), Sales Tax, and Admission Tax, account for approximately 70% of revenues in the General Fund.

TOT is estimated at $7,725,000 for the next fiscal year. This represents a decrease of $475,500 or 5.8% from the estimated revenues in the current year. The City has historically budgeted TOT revenues below current year actuals to not require record-setting overnight visitor levels to balance the budget. Taxes remitted by hotels account for approximately 67% of total TOT collections with approximately 33% remitted by short-term vacation rental properties. The City remits 22% of the TOT collected to the Love Catalina Island Tourism Authority to fund marketing and promotion activities.

Sales tax revenues are estimated to be flat compared to the current year based on forecasts prepared by the City's sales tax consultant. One percent of the current 10.25% sales and use tax rate in the City, commonly referred to as the Bradley-Burns Local Tax, is distributed to the City’s General Fund. Restaurants account for more than half of taxable sales activity in the City.

Similar to TOT, Admission Tax revenues of $881,500 are budgeted to be down 7.3% or $69,500 from current year estimates. Admission tax is a 4% tax on gross receipts for all ticketed tours, activities, and events in the City. $15M
$17M
$19M
$16M
FY2024 FY2025 FY2026 FY2027
0 $5M
$10M
$15M
$20M
$25M
General Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 30 FY27 Revenues by Revenue Source
Transient Occupancy Tax $7,725,000 47.0%
Intergovernmental $2,365,000 14.4%
Property Tax $1,761,958 10.7%
Sales Tax $1,550,145 9.4%
Admission Tax $881,500 5.4%
Other Tax $775,343 4.7%
Charges for Services $584,000 3.5%
Investment Income $400,000 2.4%
Licenses and Permits $391,500 2.4%
Fines and Forfeitures $10,000 0.1%
Other Revenues $7,000 0.0%
Other Tax includes Business License Tax, Franchise Fees, and Vehicle License Fee Adjustment Amount (VLFAA).

Charges for Services primarily includes Ambulance Fees, budgeted at $500,000, with the remainder attributable to Recreation programming and other City services. Intergovernmental includes $2,000,000 in federal earmarks for the Pebbly Beach Road Revetment capital project, as well as Supplemental Law Enforcement Services (COPS) funding and other smaller operating grants. Licenses and permits include the Business License Collection Fee, Vehicle Permits, and building and planning-related permits and application fees.

Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Property Tax $1,585,000 $1,585,000 $1,874,925 $1,761,958 Property Tax $210,000 $210,000 $210,000 $211,958
Pass Thru and
Residual Tax
$1,200,000 $1,200,000 $1,489,925 $1,475,000
Transfer Tax $25,000 $25,000 $25,000 $25,000
RDA Admin Cost
Allowance
$150,000 $150,000 $150,000 $50,000
RDA Permitted
Admin Expense
(PAE)
- - - -
Sales Tax $1,440,000 $1,440,000 $1,553,000 $1,550,145
Sales Tax $1,390,000 $1,390,000 $1,503,000 $1,500,145
PSAF Sales Tax $50,000 $50,000 $50,000 $50,000
Admission Tax $846,500 $846,500 $951,000 $881,500
Admission Tax $845,000 $845,000 $950,000 $880,000

16.5M
Revenues by Revenue Source
General Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 31 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Admission Tax
Penalties and
Interest
$1,500 $1,500 $1,000 $1,500
Transient Occupancy
Tax
$7,525,000 $7,525,000 $8,200,500 $7,725,000
Transient Occupancy
Tax - Vacation
Rentals
$2,400,000 $2,400,000 $2,796,500 $2,525,000
Transient Occupancy
Tax - Hotels
$5,100,000 $5,100,000 $5,378,000 $5,175,000
Transient Tax
Penalties and
Interest
$25,000 $25,000 $26,000 $25,000
Other Tax $740,000 $740,000 $790,820 $775,343
Business License Tax $100,000 $100,000 $105,000 $100,000 Vehicle License Fee
SB 1096
$480,000 $480,000 $500,820 $515,343
Franchise Fees $160,000 $160,000 $185,000 $160,000
Licenses and Permits $386,500 $386,500 $676,050 $391,500 Excavation Permit $2,000 $2,000 $4,000 $2,000
Obstruction Permit $15,000 $15,000 $10,000 $10,000
Building Plan Check
- Consultant
- - $1,500 -
Business License
Collection Fee
$48,000 $48,000 $48,000 $50,000
Building Permits $100,000 $100,000 $200,000 $100,000
Planning Application
Fees
$10,000 $10,000 $80,000 $10,000
Planning Fees - City - - - -
Planning Fees -
Consultant
- - - -
Encroachment
Permit
- - $1,200 $1,000
Building Plan Check $15,000 $15,000 $95,000 $15,000
Building - SMIP Fee $1,000 $1,000 $2,500 $1,000
Building - CBSC Fee $500 $500 $250 $500
Dog Licenses $500 $500 - -
Bike Licenses - - - -
Sign and Planning
Fee
$500 $500 $8,500 $1,000
Other Licenses and
Permits
$29,000 $29,000 $24,600 $21,000
Vehicle Permits $165,000 $165,000 $200,000 $180,000
Appeal Fees - - $500 -
Intergovernmental $5,812,225 $5,812,225 $3,955,976 $2,365,000 Vehicle In Lieu (VLF)
Fee
- - - -
SB 90
Reimbursement
- - - -
General Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 32 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Supplemental Law
Enforcement
Services (COPS)
$100,000 $100,000 $201,000 $165,000

FEMA/OES
Reimbursement
$2,000,000 $2,000,000 - $2,000,000
Coronavirus Relief
Funds
- - - -
Planning Grant - - $35,251 -
Fire Grant $650,000 $650,000 $656,000 $100,000
Five Corners Grant $3,062,225 $3,062,225 $3,062,225 -
GEMT Supplemental
Reimbursement
Program
- - $1,500 -
LA County Parks
Grant
- - - $100,000
Federal Transit Grant - - - -
Charges for Services $600,500 $600,500 $604,500 $584,000 Sports Fees - Adult - - - -
Facility RentalTremont
$10,000 $10,000 $5,000 $4,000
Festival Booths $1,000 $1,000 $500 $500
Facility Rental- JMF $7,500 $7,500 $8,500 $10,000
Charges for Services $1,000 $1,000 $4,500 $1,000
Ambulance Fees $500,000 $500,000 $500,000 $500,000
Sports Fees - Youth $12,500 $12,500 $12,500 $10,000
Recreation Fees -
General
$5,000 $5,000 $5,000 $4,000
Soccer - - - -
JMF Concessions - - - -
Park Rentals $4,000 $4,000 $4,000 $4,000
Contract Program
Fees
$10,000 $10,000 $16,000 $10,000
Teen Program Fees - - - -
Kayak and SUP
Storage
$4,000 $4,000 $3,500 $4,000
Youth Basketball - - - -
Summer Day Camp $15,000 $15,000 $15,000 $15,000
Tumbling and Cheer - - - -
Summer Programs - - - -
Swim Lessons - - - -
Outrigger Program $1,500 $1,500 $1,500 $1,500
Cemetery Fees $29,000 $29,000 $28,500 $20,000
Other Revenues $68,750 $68,750 $268,000 $7,000
Donations -
Programming
- - - -
Rental Income - - - -
Cash Over/Short - - - -
Housing Loan
Payoffs
- - - -
General Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 33 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Donations - - $152,500 -
Miscellaneous $41,250 $41,250 $5,000 -
Donations - Special
Events
- - - -
Contributions $20,000 $20,000 $100,000 -
Senior Program - - $2,500 -
Senior Meals $7,500 $7,500 $8,000 $7,000
Fines and Forfeitures $10,500 $10,500 $11,500 $10,000
Municipal Code
Fines
$3,000 $3,000 $5,500 $3,000
Vehicle Registration
Penalty
$7,500 $7,500 $6,000 $7,000
Business License
Penalty
- - - -
Investment Income $350,500 $350,500 $450,500 $400,000
Interest Income $350,500 $350,500 $450,500 $400,000
Market Adjustment - - - -
Transfers In - - - -
Transfers In - - - -
Transfers In -
Successory Agency
- - - -
Transfers In - Streets - - - -
Transfers In - General
Fund
- - - -
Transfers In -
Transportation
- - - -
Total Revenues $19,365,475 $19,365,475 $19,336,771 $16,451,446 Expenditures by Object Category
The table below compares actual expenditures in the past three fiscal years to expenditures budgeted for the upcoming fiscal year. FY2026 expenditures are estimated based on actuals expended through April 30, 2026 and estimated expenditures for the last two months of the fiscal year.

Historical Expenditures by Object Category
Transfers Out Maintenance & Operations Internal Services Capital Outlay Salaries & Benefits Contract Services
$13M
$18M
$19M
$21M
FY2024 FY2025 FY2026 FY2027
0 $10M
$20M
$30M
General Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 34 The primary reason for the increase in actual expenditures from FY2024 to the proposed budget for the upcoming fiscal year is due to changes in Capital Outlays. FY2025 and FY2026 included significant capital outlays, including the Crescent Avenue Stairs Reinforcement Project and the Five Corners Pedestrian Improvements Project (Five Corners).

Similarly, the upcoming fiscal year includes the completion of Five Corners and the Pebbly Beach Road Revetment Project.

FY27 Expenditures by Object Category
Capital Outlay $5,095,000 24.2%
Contract Services $4,973,500 23.7%
Salaries & Benefits $4,560,431 21.7%
Internal Services $3,375,382 16.1%
Transfers Out $1,685,000 8.0%
Maintenance & Operations $1,331,223 6.3%
Capital Outlays include the Pebbly Beach Road Revetment Project ($2.25 million budgeted), Five Corners Pedestrian Improvement Project ($750 thousand), City Maintenance Warehouse ($250 thousand), various Recreation projects ($925 thousand), Fire Department projects ($355 thousand), and other infrastructure improvements ($565 thousand).

Contract Services in the General Fund include contracted law enforcement services with the Los Angeles County Sheriff's department ($2.2 million budgeted), TOT allocation for marketing and promotions to the Love Catalina Island Tourism Authority ($1.7 million), contracted planning and building official services ($400 thousand), tree trimming services ($150 thousand), and other contracted services for Public Works, Recreation, and Storm Drain Management (approximately $500 thousand).

Salaries and benefits include wages (approximately $2.8 million), employer taxes, employer pension contributions and pension liability payments (approximately $1.0 million), insurance benefits (approximately $400 thousand), workers' compensation and other labor-related expenditures (approximately $200 thousand).

Internal Services reflects the General Fund's share of General Administration, Insurance and Vehicle Maintenance expenses. The General Fund pays approximately $2.0 million or 51.5% of the General Administration expenses, approximately $650,000 or 54.2% of the Insurance Fund expenses, and approximately $650 thousand or 55.9% of the Vehicle Maintenance (Garage) Fund expenses. See the Internal Services section for additional information on how Internal Service expenditures are allocated by fund and department.

Transfers out include $1.0 million to the Street Administration Fund to fund the citywide repaving project. Other transfers out include subsidies to the Traffic Safety and Avalon Transit Fund, as revenues from citations and fare-box, respectively, are not sufficient to fund operations.
21M
General Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 35 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Salaries & Benefits $4,564,903 $4,710,003 $4,613,726 $4,560,431 Internal Services $3,053,563 $3,053,563 $3,053,563 $3,375,382 Contract Services $4,645,340 $4,670,340 $4,813,804 $4,973,500 Maintenance &
Operations
$1,381,052 $1,439,052 $1,228,038 $1,331,223
Capital Outlay $9,660,000 $10,123,808 $4,795,000 $5,095,000 Transfers Out $880,000 $880,000 $530,000 $1,685,000
Total Expenditures $24,184,858 $24,876,766 $19,034,131 $21,020,536 Expenditures by Department
The table below compares actual expenditures in the past three fiscal years to expenditures budgeted for the upcoming fiscal year, similar to the table above, with expenditures broken down by General Fund department rather than by expenditure type. Department-level expenditure details are included in the following sections of this budget document.

Historical Expenditures by Department
Planning Recreation Administration
Community Services CIP Law Enforcement
Public Works Fire
Expenditures by Object Category
$13M
$18M
$19M
$21M
FY2024 FY2025 FY2026 FY2027
0 $10M
$20M
$30M
General Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 36 FY27 Expenditures by Department
Fire $4,150,349 19.74%
Public Works $3,535,099 16.82%
CIP $3,075,000 14.63%
Administration $2,843,928 13.53%
Law Enforcement $2,450,783 11.66%
Recreation $2,180,441 10.37%
Community Services $2,008,901 9.56%
Planning $776,035 3.69%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Administration $1,777,185 $1,777,185 $1,353,577 $2,843,928 Law Enforcement $2,385,122 $2,385,122 $2,357,722 $2,450,783 Fire $4,950,755 $5,466,113 $4,907,464 $4,150,349
PublicWorks $5,127,090 $5,164,290 $3,068,439 $3,535,099 Planning $694,124 $737,274 $771,863 $776,035
Community Services $2,010,434 $2,020,434 $2,179,827 $2,008,901 Recreation $1,620,148 $1,696,348 $1,115,239 $2,180,441
CIP $5,620,000 $5,630,000 $3,280,000 $3,075,000
Total Expenditures $24,184,858 $24,876,766 $19,034,131 $21,020,536 Position Detail
The table below summarizes the full-time equivalent (FTE) positions budgeted by department from FY24 to the proposed FY27 budget.

Category FY 2024 Budgeted FY 2025 Budgeted FY 2026 Budgeted FY 2027 Budgeted General Fund 25.19 24.16 23.66 25.02
Fire 10.00 10.00 10.50 10.72
PublicWorks 7.08 7.90 7.88 8.00
Planning 2.00 2.00 1.00 1.00
Recreation 6.11 4.26 4.28 5.30
21M
Expenditures by Department
Position Summary
General Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 37 Category FY 2024 Budgeted FY 2025 Budgeted FY 2026 Budgeted FY 2027 Budgeted Successor Agency
Administration

0.40 0.30 0.30 0.10
Administration 0.40 0.30 0.30 0.10
Total Authorized
FTEs

25.59 24.46 23.96 25.12
General Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 38 Law Enforcement
Law enforcement services are contracted through the Los Angeles County Sheriff's Department. In addition to the contracted amount, the City receives additional funding through the Citizens Option for Public Safety (COPS) program, administered through the Supplemental Law Enforcement Services Account (SLESA), to provide supplemental law enforcement resources to local agencies. The City utilizes these funds to provide additional deputy coverage on cruise ship and weekends during the peak visitor season. The department is also charged 3.4% of General Administration expenditures but is not charged for insurance or vehicle maintenance, which are covered under the services contract.

Expenditures by Object Category
Historical Expenditures by Object Category
Maintenance & Operations Internal Services Contract Services FY27 Expenditures by Object Category
Contract Services $2,310,000 94.26%
Internal Services $140,783 5.74%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Internal Services $137,407 $137,407 $137,407 $140,783
Admin Overhead
Allocation
$137,407 $137,407 $137,407 $140,783
$2M
$2M $2M
$2M
FY2024 FY2025 FY2026 FY2027
0 $1M
$2M
$3M

2.45M
Expenditures by Object Category
Law Enforcement
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 39 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Contract Services $2,247,715 $2,247,715 $2,220,314 $2,310,000 Sheriff's Contract $2,132,715 $2,132,715 $2,118,314 $2,200,000 Summer Deputy
Prgm (COPS)
$100,000 $100,000 $100,000 $100,000
Sheriff's Subsistence $15,000 $15,000 $2,000 $10,000
Total Expenditures $2,385,122 $2,385,122 $2,357,722 $2,450,783 Law Enforcement
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 40 Fire Department
The City's Fire Department consists of the Fire Chief, three Fire Captains, three Fire Engineers, and three Firefighters.

In addition, the City added a part-time administrative assistant position in the FY2026 Budget. The City also maintains a force of up to thirty (30) volunteer firefighters.

Salaries and benefits account for 66.7% of department expenditures and budgeted amounts are based on negotiated wages and benefits included in memorandums of understanding (MOUs) with the IAFF and Management bargaining units. The decrease in salaries and benefits was driven by changes to how the City allocates unfunded pension liabilities for Safety members between the Harbor and Fire Department, resulting in a savings to the Fire Department budget of $118 thousand.

Internal Service Fund expenditures account for 17.0% of department expenditures. The Fire Department is charged

10.7% of General Administration Fund expenditures, 12.1% of Insurance Fund expenditures, and 10.5% of Vehicle Maintenance Fund expenditures. The decrease in budgeted expenditures from the prior year is attributable to changes in the allocation amount for the Vehicle Maintenance Fund. The Fire Department's share of fund expenditures was reduced from 17.5%, as recent vehicle and equipment acquisitions have been charged directly to its budget and the significant capital outlays in the Vehicle Maintenance Fund over recent years have primarily benefited other departments.

Capital outlays account for 10.2% of budgeted expenditures and include funding for Fire Command 1, fire station improvements, and a grant-funded purchase of an electric stretcher.

Maintenance and operations account for 6.1% of department expenditures. Expenditures relate to ambulance supplies, equipment, communications, fuel, uniforms, and training and travel. The decrease from the current fiscal year is attributable to one-time grant funded expenditures in the current year.

Expenditures by Object Category
Historical Comparison
Maintenance & Operations Capital Outlay Internal Services Salaries & Benefits
$4M
$4M
$5M
$4M
FY2024 FY2025 FY2026 FY2027
0 $2M
$4M
$6M
Fire Department
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 41 FY27 Expenditures by Object Category
Salaries & Benefits $2,766,980.1 66.7%
Internal Services $704,333.0 17.0%
Capital Outlay $425,000.0 10.2%
Maintenance & Operations $254,035.7 6.1%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Salaries & Benefits $2,879,599 $2,933,149 $2,886,497 $2,766,980 Salaries Regular $1,189,824 $1,216,974 $1,285,829 $1,209,324 Salaries Firefighter I $97,500 $97,500 $50,275 $138,261 Overtime Regular $414,780 $414,780 $390,670 $406,570
FICA Retirement $335,052 $341,952 $316,434 $328,744
CalPERS UAL
Payment
$499,346 $499,346 $483,302 $381,349
Health/Life Insurance $202,020 $216,520 $213,017 $206,580 Workers Comp $121,393 $121,393 $121,393 $72,652
Unemployment
Insurance
$4,684 $4,684 - $3,500
Uniforms $15,000 $20,000 $25,577 $20,000
Internal Services $775,756 $775,756 $775,756 $704,333
Insurance Overhead
Allocation
$113,972 $113,972 $113,972 $143,900
Admin Overhead
Allocation
$458,025 $458,025 $458,025 $443,156
Vehicle Overhead
Allocation
$203,760 $203,760 $203,760 $117,277
Maintenance &
Operations
$295,400 $333,400 $300,211 $254,036
Safety Supplies $10,000 $48,000 $48,000 $10,000
Personal Protective
Equipment (PPE)
$55,000 $55,000 $55,000 $15,000
Air Pack Bottles $3,000 $3,000 $4,355 $4,500
Fire Hose $15,000 $15,000 $8,000 $20,000
Special Dept
Expense
$20,000 $20,000 $15,000 $20,000
Ambulance Supplies $10,000 $10,000 $10,000 $10,000
Office Supplies $2,500 $2,500 $2,500 $2,500

4.15M
Expenditures by Object Category
Fire Department
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 42 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Communications $19,700 $19,700 $24,356 $16,036
Telephone and Radio
Costs
$13,500 $13,500 $13,500 $14,000
Membership and
Dues
$11,700 $11,700 $7,000 $12,000
Training and Travel $50,000 $50,000 $45,000 $45,000
Gas, Diesel and Oil $25,000 $25,000 $17,500 $25,000
Equipment
Maintenance and
Repair
$10,000 $10,000 $5,000 $10,000
Maintenance of
Premises
$50,000 $50,000 $45,000 $50,000
Capital Outlay $1,000,000 $1,423,808 $945,000 $425,000
Capital
Improvement
$230,000 $588,808 $110,000 $200,000
Vehicle
Replacement
$770,000 $835,000 $835,000 $225,000
Total Expenditures $4,950,755 $5,466,113 $4,907,464 $4,150,349 Position Detail
Category FY 2024 Budgeted FY 2025 Budgeted FY 2026 Budgeted FY 2027 Budgeted Fire 10.00 10.00 10.50 10.72
Total Authorized
FTEs

10.00 10.00 10.50 10.72
Position Summary
Fire Department
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 43 Public Works
The City's Public Works Department consists of the following personnel: Public Works Director, Project Manager, two (2) Maintenance Superintendents , Maintenance Lead Worker, ten (10) full-time Maintenance Workers, and four (4) part-time Maintenance Workers. Because of the nature of the work performed by the Public Works Department, a portion of their labor is also allocated to the Harbor Fund, Sewer Fund, and Saltwater Fund, with 7.7 full-time equivalents (FTE) allocated to the General Fund.

Salaries and benefits account for 30.5% of department expenditures based on negotiated wages and benefits from the various bargaining units represented in the department. Internal services account for 26.1% of department expenditures. Public Works share of Vehicle Maintenance Fund expenditures increased from 39.0% to 44.4% accounting for a portion of the increase from the prior year's budget. Maintenance and operations account for 14.6% of department expenditures, with citywide utilities accounting for half of the expenditures in this category. Contract services account for 5.7% of department expenditures and include tree trimming services budgeted for $150,000, an increase of $50,000 from the current year's budget, and yellow jacket control services for $52,500, representing a new budget request in the upcoming fiscal year.

Expenditures by Object Category
Historical Comparison
Contract Services Maintenance & Operations Internal Services Capital Outlay Salaries & Benefits
$2M
$3M $3M
$4M
FY2024 FY2025 FY2026 FY2027
0 $1M
$2M
$3M
$4M
Public Works
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 44 FY27 Expenditures by Object Category
Salaries & Benefits $1,076,882 30.5%
Internal Services $924,192 26.1%
Capital Outlay $815,000 23.1%
Maintenance & Operations $516,525 14.6%
Contract Services $202,500 5.7%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Salaries & Benefits $1,005,772 $1,042,972 $1,073,900 $1,076,882 Salaries Regular $574,007 $597,607 $635,735 $606,167
Salaries Part Time $30,844 $30,844 $30,844 $56,194
Overtime Regular $16,286 $16,286 $12,500 $14,968
FICA Retirement $100,027 $102,527 $102,712 $105,168
CalPERS UAL
Payment
$76,460 $76,460 $74,003 $90,354
Health/Life Insurance $154,140 $165,240 $164,894 $150,438 Workers Comp $43,648 $43,648 $43,648 $39,451
Unemployment
Insurance
$1,685 $1,685 - $1,900
Uniforms $8,675 $8,675 $9,564 $12,240
Internal Services $835,818 $835,818 $835,818 $924,192
Insurance Overhead
Allocation
$76,375 $76,375 $76,375 $105,594
Admin Overhead
Allocation
$305,350 $305,350 $305,350 $325,187
Vehicle Overhead
Allocation
$454,093 $454,093 $454,093 $493,411
Contract Services $100,000 $100,000 $100,000 $202,500
Professional Services - - - $52,500
Tree Trimming
Services
$100,000 $100,000 $100,000 $150,000
Maintenance &
Operations
$500,500 $500,500 $458,721 $516,525
Safety Supplies $10,000 $10,000 $13,470 $13,000
Gardening Supplies $10,000 $10,000 $5,000 $10,000
Cemetery Supplies $10,000 $10,000 $6,000 $12,500
Holiday Decorations $12,000 $12,000 $12,000 $15,000

3.54M
Expenditures by Object Category
Public Works
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 45 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Small Tools $22,000 $22,000 $34,166 $25,000
Special Dept
Expense
$10,000 $10,000 $48,828 $10,000
Office Supplies $2,500 $2,500 $1,000 $5,000
Communications $6,500 $6,500 $6,500 $5,025
Utilities - General $200,000 $200,000 $189,757 $200,000 Utilities - Electricity $22,500 $22,500 $20,000 $25,000 Utilities - Cemetery $75,000 $75,000 $55,000 $75,000
Training and Travel $18,000 $18,000 $2,000 $16,000
Gas, Diesel and Oil $45,000 $45,000 $35,000 $45,000
Maintenance of
Premises
$7,000 $7,000 $5,000 $10,000
Storm Damage $50,000 $50,000 $25,000 $50,000
Capital Outlay $2,685,000 $2,685,000 $600,000 $815,000
Capital
Improvement
$2,525,000 $2,525,000 $540,000 $665,000
Cemetery
Improvement
$60,000 $60,000 - $100,000
Building
Improvements
$100,000 $100,000 $60,000 $50,000
Total Expenditures $5,127,090 $5,164,290 $3,068,439 $3,535,099 Position Detail
Category FY 2024 Budgeted FY 2025 Budgeted FY 2026 Budgeted FY 2027 Budgeted PublicWorks 7.08 7.90 7.88 8.00
Total Authorized
FTEs

7.08 7.90 7.88 8.00
Position Summary
Public Works
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 46 Building and Planning
The Planning Department consists of one full-time employee (Senior Administrative Assistant), with planning and building services contracted with Sagecrest Planning Environmental and 4Leaf Inc., respectively.

Contract services account for 62.1% of the department's budget, with $200 thousand budgeted with both Sagecrest and 4Leaf. Other contracted services include the City Attorney. Internal services account for 16.1% of the department's budget, with 2.3% of the General Administration Fund budget and 2.6% of the Insurance Fund budget charged to Planning. Salaries and benefits account for 15.7% of the department budget, with the increase in salaries and benefits largely attributable to changes in how the City allocates unfunded pension liabilities, resulting in an increase of $10 thousand to the department's budget. Maintenance and operations account for 6.1% of the operating budget and includes the copier lease, office supplies, training, and other expenses.

Expenditures by Object Category
Historical Expenditures by Object Category
Maintenance & Operations Internal Services Salaries & Benefits Contract Services
FY27 Expenditures by Object Category
Contract Services $482,000 62.1%
Internal Services $125,227 16.1%
Salaries & Benefits $121,808 15.7%
Maintenance & Operations $47,000 6.1%
$$557755KK
$$888833KK
$$777722KK $$777766KK
FY2024 FY2025 FY2026 FY2027
0 $250K
$500K
$750K
$1,000K
776K
Building and Planning
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 47 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Salaries & Benefits $87,420 $105,570 $111,660 $121,808
Salaries Regular $65,208 $66,858 $72,742 $70,200
Overtime Regular $2,445 $2,445 $1,000 $2,633
FICA Retirement $10,307 $10,807 $10,646 $12,014
CalPERS UAL
Payment
$287 $287 $278 $10,476
Health/Life Insurance $3,936 $19,936 $22,240 $21,780
Workers Comp $4,754 $4,754 $4,754 $4,456
Unemployment
Insurance
$183 $183 - $250
Uniforms $300 $300 - -
Internal Services $152,704 $152,704 $152,704 $125,227
Insurance Overhead
Allocation
$30,564 $30,564 $30,564 $30,696
Admin Overhead
Allocation
$122,140 $122,140 $122,140 $94,531
Contract Services $407,000 $432,000 $475,500 $482,000
Professional Services $150,000 $225,000 $200,000 $200,000 City Attorney
Retainer
$50,000 $50,000 $50,000 $50,000
Legal and Prof
Services -
Reimbursable
$5,000 $5,000 - $5,000
Building Inspector
Services
$150,000 $150,000 $225,000 $200,000
Building Plan Check $2,000 $2,000 $500 $2,000
General Plan and
LCP Update
$50,000 - - $25,000
Maintenance &
Operations
$47,000 $47,000 $32,000 $47,000
Training and TravelPlanning
Commission
- $5,000 - $2,000
Special Dept
Expense
$10,500 $10,500 $5,000 $10,000
Office Supplies $3,500 $3,500 $4,000 $5,000
Communications $2,000 $2,000 $1,500 $2,000
Advertising $4,000 $4,000 $2,000 $4,000
Rent - Copier $20,000 $20,000 $17,500 $20,000
Training and Travel $7,000 $2,000 $2,000 $4,000
Total Expenditures $694,124 $737,274 $771,863 $776,035
Expenditures by Object Category
Building and Planning
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 48 Position Detail
Category FY 2024 Budgeted FY 2025 Budgeted FY 2026 Budgeted FY 2027 Budgeted Planning 2.00 2.00 1.00 1.00
Total Authorized
FTEs

2.00 2.00 1.00 1.00
Position Summary
Building and Planning
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 49 Recreation and Community Services
The Recreation and Community Services Department is responsible for managing the City's youth and adult recreational sport leagues, instructional classes contracted through the City, summer programming, special events, including the Fourth of July celebration, as well as assisting with the foodbank and other public-assistance initiatives.

The department is staffed with two full-time employees: a Community Services Director and a Community Services Supervisor, and approximately 7,000 hours for part-time Recreation Leaders and Aides.

Contract services, representing 41.8% of the department budget, includes the allocation of TOT to the Love Catalina Island Tourism Authority, budgeted at $1,700,000 based on TOT estimates, for marketing and promotion activities.

Other contract services include funding for new recreation software. Capital outlays represent 20.4% of the proposed budget expenditures, with a detailed breakdown of projects included in the Capital Improvement Plan section of the budget. Internal services account for 14.0% of department expenditures, with the department responsible for 10.4% of General Administration, 11.8% of Insurance, and 1.0% of Vehicle Maintenance expenditures. Salaries and benefits represent 13.5% of department expenditures based on negotiated wages and benefits from MOUs. Maintenance and operations expenditures account for 10.3% of the department budget, including $146,000 for the Fourth of July celebration and $5,000 for public arts projects.

Expenditures by Object Category
Historical Expenditures by Object Category
Capital Outlay Maintenance & Operations Salaries & Benefits Internal Services Contract Services
$3M $3M $3M
$4M
FY2024 FY2025 FY2026 FY2027
0 $2M
$4M
$6M
Recreation and Community Services
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 50 FY27 Expenditures by Object Category
Contract Services $1,752,500 41.8%
Capital Outlay $855,000 20.4%
Internal Services $584,451 14.0%
Salaries & Benefits $566,729 13.5%
Maintenance & Operations $430,662 10.3%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Salaries & Benefits $501,971 $538,171 $495,612 $566,729 Salaries Regular $198,744 $226,644 $226,644 $239,256
Salaries Part Time $121,528 $121,528 $88,590 $135,687
Overtime Regular $2,328 $2,328 $1,000 $11,959
FICA Retirement $45,801 $50,401 $47,050 $56,766
CalPERS UAL
Payment
$55,635 $55,635 $53,847 $35,526
Health/Life Insurance $53,796 $57,496 $55,816 $55,200
Workers Comp $22,665 $22,665 $22,665 $26,285
Unemployment
Insurance
$874 $874 - $1,250
Uniforms $600 $600 - $4,800
Internal Services $560,959 $560,959 $560,959 $584,451
Insurance Overhead
Allocation
$110,375 $110,375 $110,375 $140,536
Admin Overhead
Allocation
$438,940 $438,940 $438,940 $432,793
Vehicle Overhead
Allocation
$11,643 $11,643 $11,643 $11,122
Contract Services $1,682,500 $1,682,500 $1,831,890 $1,752,500 Contractual Services
- General
$7,500 $7,500 $11,000 $27,500
Senior Meals
Program
$25,000 $25,000 $22,500 $25,000
Chamber Marketing
- TOT
$1,650,000 $1,650,000 $1,798,390 $1,700,000
Maintenance &
Operations
$460,152 $470,152 $356,606 $430,662
Small Tools $1,000 $1,000 $1,000 $1,000

4.19M
Expenditures by Object Category
Recreation and Community Services
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 51 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Special Dept
Expense
$10,000 $10,000 $8,000 $10,000
Office Supplies $2,500 $2,500 $1,750 $2,500
Communications $2,500 $2,500 $2,500 $4,060
Advertising $1,000 $1,000 $500 $1,000
Utilities - Joe
Machado Field
$50,000 $50,000 $50,000 $50,000
Rent -WW1 Machine
Gun Park
$1 $1 $1 $1
Rent - Riley's Pond $1 $1 $1 $1
Rent - Tremont Hall $2,000 $2,000 $250 $2,000
Membership and
Dues
$1,200 $1,200 $1,200 $3,100
Training and Travel $4,000 $4,000 $3,000 $8,000
Bank and CC Fees $8,000 $8,000 $5,500 $7,000
Rec Programs -
Youth
$16,000 $16,000 $15,000 $14,000
Rec Programs -
Adult
$8,000 $8,000 $3,000 $8,000
Rec Programs -
Contract Services
$25,000 $25,000 $20,000 $25,000
Teen Program $2,500 $2,500 - $2,500
Senior Program $10,000 $10,000 $7,500 $13,000
Special Events
Program
$19,000 $19,000 $19,000 $27,000
4th of July Program $140,450 $140,450 $151,454 $146,000 Swim/Run Event - - - $5,000
Day Camp $6,000 $6,000 $6,000 $6,000
Teen/Senior Program - - $450 -
Park Facilities $10,000 $10,000 $11,000 $15,000
Tremont Hall $26,000 $26,000 $5,000 $5,000
Skate Park - - $2,000 -
Rec Programs -
Summer
$15,000 $15,000 $12,500 $15,500
Homeless Program $5,000 $15,000 $15,000 $10,000
Maintenance of
Premises
$95,000 $95,000 $15,000 $50,000
Capital Outlay $425,000 $465,000 $50,000 $855,000
Capital
Improvement
$425,000 $465,000 $50,000 $855,000
Total Expenditures $3,630,582 $3,716,782 $3,295,066 $4,189,342 *Budgeted amount for Public Arts listed as Swim/Run Event. The Finance Department is working with Support to resolve the issue.

Recreation and Community Services
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 52 Position Detail
Category FY 2024 Budgeted FY 2025 Budgeted FY 2026 Budgeted FY 2027 Budgeted Recreation 6.11 4.26 4.28 5.30
Total Authorized
FTEs

6.11 4.26 4.28 5.30
Position Summary
Recreation and Community Services
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 53 Other General Fund Activity
Other General Fund expenditures relate to the Storm Drain Fund, Successor Agency Administration, and internal service allocations and transfers assigned to the General Fund.

The City charges a portion of the contract for managing the wastewater treatment plant (approximately 5%) to the Storm Drain Fund, which is funded through transfers by the General Fund. The General Fund also subsidizes the Traffic Safety Fund, Street Administration, and Avalon Transit Funds through transfers, as citations, gasoline taxes, and Local Return funds are not sufficient to fully fund these operations. In addition to transfers, the General Fund assumes the share of internal service charges for Special Revenue Funds, including the Housing Authority, Local Transportation, Traffic Safety, and Street Administration, to comply with specific requirements in these funds and to ensure the other Enterprise Funds are not charged a disproportionate amount for the services they receive. These charges account for

16.3% of General Administration Fund and 18.5% of Insurance Fund expenditures.

Lastly, the City receives an administrative allowance for managing the Successor Agency. A portion of the Finance Director's time (10%) is charged to the fund for managing the reporting process, along with contracted services with RSG Solutions, who assist with County and State reporting requirements. The decrease in budgeted allowance and associated expenditures is the result of decreased activity to be reported.

Expenditures by Fund
Historical Expenditures by Fund
Successor Agency Administration Storm Drain Administration General Fund $1M
$1M $1M
$3M
FY2024 FY2025 FY2026 FY2027
0 $1M
$2M
$3M
Other General Fund Activity
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 54 FY27 Expenditures by Fund
General Fund $2,581,396 90.77%
Storm Drain Administration $197,500 6.94%
Successor Agency Administration $65,032 2.29%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
General Fund $1,470,919 $1,470,919 $1,120,919 $2,581,396 Insurance Overhead
Allocation
$117,627 $117,627 $117,627 $219,726
Admin Overhead
Allocation
$473,292 $473,292 $473,292 $676,670
Transfers Out - City
Infrastructure
$350,000 $350,000 - $1,000,000
Transfers Out -
Transportation
$210,000 $210,000 $210,000 $325,000
Transfers Out - GenlTraffic
$320,000 $320,000 $320,000 $360,000
Storm Drain
Administration
$179,125 $179,125 $161,000 $197,500
City Attorney
Retainer
$10,000 $10,000 $5,000 $10,000
Contractual Services
- General
$60,000 $60,000 $45,000 $60,000
Contractual Services
- PERC
$103,125 $103,125 $111,000 $121,500
Miscellaneous
Expense
$6,000 $6,000 - $6,000
Successor Agency
Administration
$127,141 $127,141 $71,657 $65,032
Salaries Regular $61,086 $61,086 $16,255 $18,381
FICA Retirement $9,611 $9,611 $8,571 $2,881
CalPERS UAL
Payment
$7,817 $7,817 $7,566 $2,743
Health/Life Insurance $7,170 $7,170 $9,373 $2,760
Workers Comp $4,292 $4,292 $4,292 $1,167
Unemployment
Insurance
$165 $165 - $100

2.84M
Expenditures by Fund
Other General Fund Activity
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 55 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Special Dept
Expense
$1,000 $1,000 - $1,000
Communications $1,000 $1,000 $500 $1,000
Professional Services $25,000 $25,000 $15,000 $25,000
Accounting and
Auditing
$10,000 $10,000 $10,000 $10,000
City Attorney
Retainer
- - $100 -
Total Expenditures $1,777,185 $1,777,185 $1,353,577 $2,843,928 Position Detail
Category FY 2024 Budgeted FY 2025 Budgeted FY 2026 Budgeted FY 2027 Budgeted Administration 0.40 0.30 0.30 0.10
Total Authorized
FTEs

0.40 0.30 0.30 0.10
Position Summary
Other General Fund Activity
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 56 Housing Authority
The Housing Authority’s primary activities are maintaining the former Avalon Community Improvement Agency's assets, such as properties and affordability agreements, including the 206 East Whittley Avenue property.

Capital outlays include construction for the 206 East Whittley Retaining Wall Remediation Project. In developing the plan for a potential second building, geotechnical engineers determined the existing retaining walls at the property’s boundaries need remediation to extend their service life due to corrosion on the existing tiebacks and age of the concrete. Other capital projects include the preliminary design and engineering of additional low-moderate income housing developments within the City limits.

Contract services include the City's contract with RSG Solutions, who assist City Staff with reporting and other compliance requirements, and the City Attorney. In addition, the City charges a portion of the City Manager's time to the Housing Authority. Previously, the City also charged a portion of the Assistant City Manager and Public Works Director to the fund for their involvement in managing housing-related activities.

Summary
Revenues vs Expenditures Summary
Comprehensive Fund Summary
Revenue Actual Revenue Surplus Revenue Budgeted
Expenditures Actual Expenditures Over Budget Expenditures Budgeted 2024 2025 2026 2027
0 $200K
$400K
$600K
$800K
Comprehensive Fund Summary
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Beginning Fund Balance $5,470,577 $5,470,577 $5,470,577 $5,145,492 Revenues
Housing Authority
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 57 Revenues by Object
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Interest Income $117,000 $117,000 $162,000 $162,000
Lease Revenue $10,000 $10,000 $10,000 -
Total Revenues $127,000 $127,000 $172,000 $162,000
Expenditures by Object Category
Historical Expenditures by Object Category
Maintenance & Operations Contract Services Salaries & Benefits Capital Outlay
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Other Revenues $10,000 $10,000 $10,000 -
Investment Income $117,000 $117,000 $162,000 $162,000
Total Revenues $127,000 $127,000 $172,000 $162,000
Expenditures
Salaries & Benefits $43,983 $48,533 $86,835 $29,439
Contract Services $40,000 $40,000 $20,000 $40,000
Maintenance & Operations - - $250 $138
Capital Outlay $200,000 $470,000 $390,000 $200,000
Total Expenditures $283,983 $558,533 $497,085 $269,577
Total Revenues Less
Expenditures
-$156,983 -$431,533 -$325,085 -$107,577
Ending Fund Balance $5,313,594 $5,039,044 $5,145,492 $5,037,915 Revenues by Object
$$113366KK
$$110066KK
$$449977KK
$$227700KK
FY2024 FY2025 FY2026 FY2027
0 $200K
$400K
$600K
Housing Authority
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 58 FY27 Expenditures by Object Category
Capital Outlay $200,000 74.19%
Contract Services $40,000 14.84%
Salaries & Benefits $29,439 10.92%
Maintenance & Operations $138 0.05%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Salaries & Benefits $43,983 $48,533 $86,835 $29,439
Salaries Regular $30,542 $34,592 $75,009 $19,311
FICA Retirement $4,805 $5,305 $3,792 $3,742
CalPERS UAL
Payment
$3,910 $3,910 $3,784 $2,882
Health/Life Insurance $2,495 $2,495 $2,103 $2,178
Workers Comp $2,147 $2,147 $2,147 $1,226
Unemployment
Insurance
$84 $84 - $100
Contract Services $40,000 $40,000 $20,000 $40,000
Professional Services $25,000 $25,000 $10,000 $25,000
City Attorney
Retainer
$15,000 $15,000 $10,000 $15,000
Maintenance &
Operations
- - $250 $138
Special Dept
Expense
- - - $60
Communications - - $250 $78
Capital Outlay $200,000 $470,000 $390,000 $200,000
Capital
Improvement
$200,000 $470,000 $390,000 $200,000
Total Expenditures $283,983 $558,533 $497,085 $269,577
270K
Expenditures by Object Category
Housing Authority
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 59 Position Detail
Category FY 2024 Budgeted FY 2025 Budgeted FY 2026 Budgeted FY 2027 Budgeted Housing Authority 0.15 0.15 0.15 0.10
Total Authorized
FTEs

0.15 0.15 0.15 0.10
Position Summary
Housing Authority
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 60 Local Transportation
The Local Transportation Fund accounts for transit-related activity in the City of Avalon, including the City of Avalon Seaside Transit (COAST) point-to-point shuttle service and cross-channel commuter subsidy program, which are funded utilizing various intergovernmental revenues including Local Return funds and Transportation Development Act Article 3 and Article 8 (TDA) funds.

Local Return Funds refer to four one-half cent sales tax measures approved by Los Angeles County voters to finance countywide transit development programs, which include Proposition A, Proposition C, Measure M, and Measure R funds. In addition to these funds, which are distributed on a per-capita basis by the Los Angeles Metropolitan Transportation Authority (METRO), the City annually applies for and receives Proposition A Discretionary funds, which are used primarily to fund the commuter subsidy program, as well as to offset costs associated with COAST. TDA funds are state funds derived from a quarter cent sales tax and from sales tax on diesel fuel.

Summary
Revenues vs Expenditures Summary
Comprehensive Fund Summary
Revenue Actual Revenue Budgeted Expenditures Actual
Expenditures Budgeted
2024 2025 2026 2027
0 $500K
$1,000K
$1,500K
$2,000K
Comprehensive Fund Summary
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Beginning Fund Balance - - - $5,040
Revenues
Intergovernmental $1,431,564 $1,431,564 $1,431,564 $1,452,440 Local Transportation
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 61 Revenue Detail
Historical Comparison
TDA Article 3 Measure R Local Return Measure M Local Return Prop C Local Return Prop A Local Return TDA Article 8
Prop A Discretionary - Jitney Prop A Discretionary - Commuter Subsidy Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Investment Income - - - -
Total Revenues $1,431,564 $1,431,564 $1,431,564 $1,452,440 Expenditures
Contract Services $800,000 $800,000 $800,000 $800,000
Maintenance & Operations $626,524 $626,524 $626,524 $652,440 Capital Outlay - - - -
Transfers Out - - - -
Total Expenditures $1,426,524 $1,426,524 $1,426,524 $1,452,440 Total Revenues Less
Expenditures
$5,040 $5,040 $5,040 -
Ending Fund Balance $5,040 $5,040 $5,040 $5,040
$$$111,,,444000666KKK
$$$111,,,444888555KKK $$$111,,,444333222KKK $$$111,,,444555222KKK FY2024 FY2025 FY2026 FY2027
0 $500K
$1,000K
$1,500K
$2,000K
Local Transportation
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 62 FY27 Revenue Detail
Prop A Discretionary - Commuter
Subsidy
$800,000 55.08%
Prop A Discretionary - Jitney $200,000 13.77%
TDA Article 8 $167,800 11.55%
Prop A Local Return $88,588 6.10%
Prop C Local Return $73,482 5.06%
Measure M Local Return $62,459 4.30%
Measure R Local Return $55,111 3.79%
TDA Article 3 $5,000 0.34%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Prop A Discretionary -
Jitney
$200,000 $200,000 $200,000 $200,000
Measure M Local
Return
$60,422 $60,422 $60,422 $62,459
TDA Article 8 $156,044 $156,044 $156,044 $167,800
TDA Article 3 $5,000 $5,000 $5,000 $5,000
Prop A Discretionary -
Commuter Subsidy
$800,000 $800,000 $800,000 $800,000
Prop C Local Return $71,085 $71,085 $71,085 $73,482
Prop A Local Return $85,699 $85,699 $85,699 $88,588
Measure R Local Return $53,314 $53,314 $53,314 $55,111
Total Revenues $1,431,564 $1,431,564 $1,431,564 $1,452,440

1.45M
Revenue Detail
Local Transportation
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 63 Expenditure Detail
Historical Comparison
Transfers Out - City Infrastructure Transit and DAR Commuter Subsidy Program FY27 Expenditure Detail
Commuter Subsidy Program $800,000 55.08%
Transit and DAR $652,440 44.92%
Category FY 2026 Actual
FY 2026 Adopted
Budget
FY 2027 Budgeted
FY 2026 Adopted
Budget vs. FY 2027
Budgeted (%
Change)
Transit and DAR $626,524.00 $626,524.00 $652,440.00 4.14% Commuter Subsidy
Program
$800,000.00 $800,000.00 $800,000.00
Total Expenditures $1,426,524.00 $1,426,524.00 $1,452,440.00 1.82% $$$111,,,444000666KKK
$$$111,,,444888555KKK $$$111,,,444222777KKK $$$111,,,444555222KKK FY2024 FY2025 FY2026 FY2027
0 $500K
$1,000K
$1,500K
$2,000K

1.45M
Expenditure Detail
Local Transportation
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 64 Nonmajor (Special Revenue) Funds
Special Revenue Funds are used to account for the proceeds of revenues that are designated for specific or restricted uses. In addition to the Housting Authority and Local Transportation Funds, the City uses special revenue funds for Traffic Safety, Street Administration, Community Development Block Grants (CDBG), and the Mclean Putnam Hall Funds. The City also has separate funds for the five development impact fees. These funds are classified as nonmajor funds based on their size relative to the City's other major funds.

The Traffic Safety Fund is used to account for citation revenues which are restricted to be used for parking enforcement, traffic control and other code enforcement activities.

The Street Administration Fund is used to account for various gasoline tax revenues received by the City which are restricted to be used for street maintenance and related improvements.

The CDBG Fund is used to account for grant revenues received through a federal grant program to help communities develop urban areas. The City receives an annual allocation of less than $40 thousand through this program. Over the last several years, the City has used these funds to enhance the ADA-accessibility of streets and sidewalks through curb cuts and other improvements. Given the relatively small amount received, the City rolls over funds for several years until enough has accumulated to efficiently fund an ADA-related project. The City does not have any proposed budgeted activity in this fund for the current year.

The Mclean Putnam Hall Fund was established to account for donations to the Fire Department for the purchase of fire-related equipment. The City does not have any proposed budgeted activity in this fund for the current year but will request amendments to the budget as projects are identified or as additional funds become available.

Revenues by Fund
Historical Revenue by Fund
Wastewater Capacity DIF Circulation DIF Transportation DIF Landfill DIF Fire Protection DIF McClean/Hall/Putnam Trust Community Development Block Grant (CDBG) Traffic Safety Street Administration $$660066KK
$$338844KK
$$557733KK
$$$111,,,666555333KKK
FY2024 FY2025 FY2026 FY2027
0 $500K
$1,000K
$1,500K
$2,000K
Nonmajor (Special Revenue) Funds
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 65 FY27 Revenues by Fund
Street Administration $1,192,742 72.17%
Traffic Safety $460,000 27.83%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Street Administration $541,833 $541,833 $191,833 $1,192,742 Traffic Safety $415,000 $415,000 $380,000 $460,000
Community
Development Block
Grant (CDBG)
- - - -
McClean/Hall/Putnam
Trust
$3,800 $3,800 $1,500 -
Fire Protection DIF - - - -
Circulation DIF - - - -
Transportation DIF - - - -
Landfill DIF - - - -
Wastewater Capacity
DIF
- - - -
Total Revenues $960,633 $960,633 $573,333 $1,652,742

1.65M
Revenues by Fund
Nonmajor (Special Revenue) Funds
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 66 Expenditures by Fund
Historical Expenditures by Fund
Community Development Block Grant (CDBG) Traffic Safety Street Administration FY27 Expenditures by Fund
Street Administration $1,170,000 71.76%
Traffic Safety $460,333 28.24%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Street Administration $965,000 $965,000 $123,350 $1,170,000 Contract Services $75,000 $75,000 $73,350 $125,000
Maintenance &
Operations
$40,000 $40,000 $40,000 $45,000
Capital Outlay $850,000 $850,000 $10,000 $1,000,000
Traffic Safety $392,531 $394,431 $347,585 $460,333
Salaries & Benefits $337,531 $339,431 $280,085 $369,833 Contract Services $25,000 $25,000 $25,000 $50,000
Maintenance &
Operations
$30,000 $30,000 $42,500 $40,500
Total Expenditures $1,357,531 $1,359,431 $470,935 $1,630,333 $$558888KK
$$440066KK
$$447711KK
$$$111,,,666333000KKK
FY2024 FY2025 FY2026 FY2027
0 $500K
$1,000K
$1,500K
$2,000K

1.63M
Expenditures by Fund
Nonmajor (Special Revenue) Funds
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 67 Street Administration
The Street Administration Fund is used to track expenditures of funds received from the City's share of state gasoline taxes in accordance with the provisions of the State of California Streets and Highway Code.

The City receives Highway Users Tax Account (HUTA) funding under Sections 2103, 2105, 2106, 2107, and 2107.5 and Road Maintenance and Rehabilitation Account (RMRA) funding under Section 2032. The City has historically used HUTA funding to provide contracted street sweeping services and funding for annual road maintenance. The City has used RMRA funding as part of its local match for the Five Corner's Pedestrian Improvement Project.

The proposed budget includes additional funding for an assessment of current road conditions to be performed prior to the Citywide Street Paving Project. This project will be primarily funded by a transfer from the General Fund.

Summary
Revenues vs Expenditures Summary
Comprehensive Fund Summary
Revenue Actual Revenue Surplus Revenue Budgeted
Expenditures Actual Expenditures Budgeted
2024 2025 2026 2027
0 $250K
$500K
$750K
$1,000K
$1,250K
$1,500K
Comprehensive Fund Summary
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Beginning Fund Balance $12,271 $12,271 $12,271 $80,754
Revenues
Other Tax $191,833 $191,833 $191,833 $192,742
Investment Income - - - -
Street Administration
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 68 Revenues by Revenue Source
Historical Revenue by Revenue Source
Investment Income Other Tax Transfers In
FY27 Revenues by Revenue Source
Transfers In $1,000,000 83.84%
Other Tax $192,742 16.16%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Transfers In $350,000 $350,000 - $1,000,000
Total Revenues $541,833 $541,833 $191,833 $1,192,742
Expenditures
Contract Services $75,000 $75,000 $73,350 $125,000
Maintenance & Operations $40,000 $40,000 $40,000 $45,000 Capital Outlay $850,000 $850,000 $10,000 $1,000,000
Transfers Out - - - -
Total Expenditures $965,000 $965,000 $123,350 $1,170,000 Total Revenues Less
Expenditures
-$423,167 -$423,167 $68,483 $22,742
Ending Fund Balance -$410,896 -$410,896 $80,754 $103,496 $$119988KK $$119944KK $$119922KK
$$$111,,,111999333KKK
FY2024 FY2025 FY2026 FY2027
0 $500K
$1,000K
$1,500K

1.19M
Street Administration
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 69 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Other Tax $191,833 $191,833 $191,833 $192,742
Gas Tax (2103) $32,500 $32,500 $32,500 $33,166
Gas Tax (2105) $21,500 $21,500 $21,500 $21,798
Gas Tax (2106) $17,000 $17,000 $17,000 $17,011
Gas Tax (2107) $29,500 $29,500 $29,500 $29,114
Gas Tax (2107.5) $1,000 $1,000 $1,000 $1,000
Gas Tax (2032) $90,333 $90,333 $90,333 $90,653
Other Tax Revenue - - - -
Traffic Congestion
Relief
- - - -
Investment Income - - - -
Interest Income - - - -
Transfers In $350,000 $350,000 - $1,000,000
Transfers In - General
Fund
$350,000 $350,000 - $1,000,000
Total Revenues $541,833 $541,833 $191,833 $1,192,742
Expenditures by Object Category
Historical Expenditures by Object Category
Maintenance & Operations Contract Services Capital Outlay Revenues by Revenue Source
$81K $89K $$112233KK
$$$111,,,111777000KKK
FY2024 FY2025 FY2026 FY2027
0 $500K
$1,000K
$1,500K
Street Administration
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 70 FY27 Expenditures by Object Category
Capital Outlay $1,000,000 85.47%
Contract Services $125,000 10.68%
Maintenance & Operations $45,000 3.85%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Contract Services $75,000 $75,000 $73,350 $125,000
Professional Services - - - $50,000
Street Sweeper
Contr.
$75,000 $75,000 $73,350 $75,000
Maintenance &
Operations
$40,000 $40,000 $40,000 $45,000
Street Maintenance $40,000 $40,000 $40,000 $45,000
Capital Outlay $850,000 $850,000 $10,000 $1,000,000
Cap CityWide
Pothole Rpr
$850,000 $850,000 $10,000 $1,000,000
Total Expenditures $965,000 $965,000 $123,350 $1,170,000

1.17M
Expenditures by Object Category
Street Administration
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 71 Traffic Safety
The Traffic Safety Fund is used to account for citation revenues resulting from violations of the California Vehicle Code, which are restricted to being used for parking enforcement, traffic control and other code enforcement activities.

Annual citation revenues are not sufficient to fund current enforcement activities and the fund is subsidized annually through a transfer from the General Fund.

Salaries and benefits, based on negotiated MOUs, account for 80.3% of expenditures in this fund. Budgeted positions include a Lead Code Enforcement Officer, a Code Enforcement Officer, and two (2) vacant part-time Parking Enforcement Officer positions. Contract services account for 10.9% of budgeted expenditures and include $25,000 for contracted Vehicle Hearing Officer services and $25,000 for contracted Animal Control services, an increase of $15,000 from the prior year's budget.

Summary
Revenues vs Expenditures Summary
Comprehensive Fund Summary
Revenue Actual Revenue Budgeted Expenditures Actual
Expenditures Over Budget Expenditures Budgeted
2024 2025 2026 2027
0 $100K
$200K
$300K
$400K
$500K
Comprehensive Fund Summary
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Beginning Fund Balance -$30,975 -$30,975 -$30,975 $1,440 Revenues
Fines and Forfeitures $95,000 $95,000 $60,000 $100,000
Transfers In $320,000 $320,000 $320,000 $360,000
Traffic Safety
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 72 Revenues by Revenue Source
Historical Revenue by Revenue Source
Fines and Forfeitures Transfers In
FY27 Revenues by Revenue Source
Transfers In $360,000 78.3%
Fines and Forfeitures $100,000 21.7%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Total Revenues $415,000 $415,000 $380,000 $460,000
Expenditures
Salaries & Benefits $337,531 $339,431 $280,085 $369,833 Contract Services $25,000 $25,000 $25,000 $50,000
Maintenance & Operations $30,000 $30,000 $42,500 $40,500 Total Expenditures $392,531 $394,431 $347,585 $460,333
Total Revenues Less
Expenditures
$22,469 $20,569 $32,415 -$333
Ending Fund Balance -$8,506 -$10,406 $1,440 $1,107
$$227733KK
$89K
$$338800KK
$$446600KK
FY2024 FY2025 FY2026 FY2027
0 $200K
$400K
$600K
460K
Traffic Safety
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 73 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Fines and Forfeitures $95,000 $95,000 $60,000 $100,000
Traffic Safety Fines $95,000 $95,000 $60,000 $100,000
Transfers In $320,000 $320,000 $320,000 $360,000
Transfers In - General
Fund
$320,000 $320,000 $320,000 $360,000
Total Revenues $415,000 $415,000 $380,000 $460,000
Expenditures by Object Category
Historical Expenditures by Object Category
Contract Services Maintenance & Operations Salaries & Benefits FY27 Expenditures by Object Category
Salaries & Benefits $369,833 80.3%
Contract Services $50,000 10.9%
Maintenance & Operations $40,500 8.8%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Salaries & Benefits $337,531 $339,431 $280,085 $369,833 Revenues by Revenue Source
$$229933KK
$$331177KK
$$334488KK
$$446600KK
FY2024 FY2025 FY2026 FY2027
0 $200K
$400K
$600K
460K
Expenditures by Object Category
Traffic Safety
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 74 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Salaries Regular $167,471 $167,471 $167,471 $178,191
Salaries Part Time $45,026 $45,026 - $48,485
Overtime Regular $6,281 $6,281 $8,800 $11,175
FICA Retirement $32,958 $34,858 $27,920 $35,529
CalPERS UAL
Payment
$31,138 $31,138 $30,138 $25,685
Health/Life Insurance $38,059 $38,059 $28,477 $53,304
Workers Comp $15,374 $15,374 $15,374 $14,004
Unemployment
Insurance
$594 $594 - $700
Uniforms $630 $630 $1,906 $2,760
Contract Services $25,000 $25,000 $25,000 $50,000
Hearing Officer
Services
$25,000 $25,000 $25,000 $25,000
Contractual Services
- General
- - - $25,000
Maintenance &
Operations
$30,000 $30,000 $42,500 $40,500
Safety Supplies $7,000 $7,000 $20,000 $12,500
Special Dept
Expense
$5,000 $5,000 $6,000 $5,000
Communications $2,000 $2,000 $500 $2,000
Training and Travel $2,000 $2,000 $2,000 $6,000
Animal Control $4,000 $4,000 $4,000 $5,000
Humane Society
Donation
$10,000 $10,000 $10,000 $10,000
Total Expenditures $392,531 $394,431 $347,585 $460,333
Position Detail
Category FY 2024 Budgeted FY 2025 Budgeted FY 2026 Budgeted FY 2027 Budgeted Traffic Safety 2.10 2.10 3.10 3.10
Total Authorized
FTEs

2.10 2.10 3.10 3.10
Position Summary
Traffic Safety
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 75 Harbor Fund
The Harbor Fund is the City’s largest enterprise fund and is used to account for all operations within the harbor and facilities along the waterfront. As an enterprise fund, the costs for operating and maintaining the harbor should be recovered by the users of harbor facilities through fees and service charges to ensure the harbor is maintained in a self-sustaining manner.

Summary
The table below compares budget-to-actual revenues and expenditures for the last three fiscal years.

Revenues vs Expenditures Summary
Budgeted revenues and expenditures significantly exceed actuals due to budgeted capital outlays and associated grant revenues not being incurred during the fiscal year as planned due to the timing of construction on several large capital projects, including the second phase of the Cabrillo Mole Ferry Terminal Rehabilitation.

Comprehensive Fund Summary
Revenue Actual Revenue Surplus Revenue Budgeted
Expenditures Actual Expenditures Budgeted
2024 2025 2026 2027
0 $5M
$10M
$15M
$20M
$25M
$30M
Comprehensive Fund Summary
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Beginning Fund Balance $2,436,193 $2,436,193 $2,436,193 $4,831,718 Revenues
Admission Tax $200,000 $200,000 $290,150 $225,000
Intergovernmental $2,000,000 $2,000,000 $1,000,000 $5,000,000 Harbor Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 76 The table above does not separate capital outlays from operating expenses. While there are anticipated draws on reserves to fund major capital activity over the next several fiscal years, operating expenditures are fully funded by operating revenues as demonstrated in the Harbor Operations section of the budget document.

Revenues by Fund
Historical Revenue by Fund
Fuel Dock Harbor Capital Harbor Operations
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Grants $300,000 $300,000 - $4,080,000
Charges for Services $9,713,000 $9,713,000 $11,262,411 $11,514,500 Other Revenues $626,000 $625,000 $656,500 $652,000
Investment Income $110,000 $110,000 $110,000 $110,000
Total Revenues $12,949,000 $12,948,000 $13,319,061 $21,581,500 Expenditures
Salaries & Benefits $3,517,376 $3,565,776 $3,388,504 $4,172,605 Internal Services $1,847,485 $1,847,485 $1,847,485 $2,107,337 Contract Services $2,145,000 $2,145,000 $1,960,570 $2,138,500 Maintenance & Operations $1,538,750 $1,598,750 $1,366,976 $1,708,168 Capital Outlay $4,433,222 $5,028,222 $2,360,000 $14,295,000 Total Expenditures $13,481,833 $14,185,233 $10,923,535 $24,421,610 Total Revenues Less
Expenditures
-$532,833 -$1,237,233 $2,395,526 -$2,840,110
Ending Fund Balance $1,903,360 $1,198,960 $4,831,719 $1,991,608 $10M $9M
$13M
$22M
FY2024 FY2025 FY2026 FY2027
0 $10M
$20M
$30M
Harbor Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 77 FY27 Revenues by Fund
Harbor Capital $12,959,000 60.05%
Harbor Operations $8,592,500 39.81%
Fuel Dock $30,000 0.14%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Harbor Operations $8,199,000 $8,198,000 $9,279,061 $8,592,500 Admission Tax $200,000 $200,000 $290,150 $225,000
Admission Tax $200,000 $200,000 $290,000 $225,000
Admission Tax
Penalties and
Interest
- - $150 -
Charges for
Services
$7,288,000 $7,288,000 $8,247,411 $7,630,500
Harbor Use Fees $450,000 $450,000 $475,000 $460,000
Wharfage Fees -
Cross Channel
$2,425,000 $2,425,000 $2,700,000 $2,500,000
Wharfage Fees -
Cruise Ship
$2,000,000 $2,000,000 $2,175,000 $2,108,000
Mooring Permits -
Annual
$260,000 $260,000 $260,000 $260,000
Harbor Transfer
Fees
$150,000 $150,000 $355,000 $150,000
Harbor Service
Charges - General
$2,000,000 $2,000,000 $2,280,147 $2,150,000
Mole Hoist Usage
Fees
$1,000 $1,000 $1,000 $1,000
MooringWait List
Charges
$1,000 $1,000 $1,000 $1,000
Harbor Tows $1,000 $1,000 $250 $500
Shoreboat
Services
- - $14 -
Other Revenues $626,000 $625,000 $656,500 $652,000
Rental Income $625,000 $625,000 $650,000 $650,000
Pier and Tideland
Rentals Penalties
and Interest
- - $3,500 $1,000

21.6M
Revenues by Fund
Harbor Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 78 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Harbor Use Fees
Penalties and
Interest
$1,000 - $3,000 $1,000
Investment Income $85,000 $85,000 $85,000 $85,000
Interest Income $85,000 $85,000 $85,000 $85,000
Harbor Capital $4,720,000 $4,720,000 $4,010,000 $12,959,000 Intergovernmental $2,000,000 $2,000,000 $1,000,000 $5,000,000 Federal Transit
Grant
$2,000,000 $2,000,000 $1,000,000 $5,000,000
Grants $300,000 $300,000 - $4,080,000
DBAWGrant $300,000 $300,000 - $4,080,000
Charges for
Services
$2,395,000 $2,395,000 $2,985,000 $3,854,000
Wharfage Fees -
Cross Channel
$1,850,000 $1,850,000 $2,450,000 $2,800,000
Wharfage Fees -
Cruise Ship
$545,000 $545,000 $535,000 $1,054,000
Investment Income $25,000 $25,000 $25,000 $25,000
Interest Income $25,000 $25,000 $25,000 $25,000
Fuel Dock $30,000 $30,000 $30,000 $30,000
Charges for
Services
$30,000 $30,000 $30,000 $30,000
Fuel Charges $30,000 $30,000 $30,000 $30,000
Total Revenues $12,949,000 $12,948,000 $13,319,061 $21,581,500 Expenditures by Fund
The Harbor Fund uses three different funds to track activity related to Harbor Operations, Harbor Capital, and the Fuel Dock.

Harbor Operations includes activity related to the day-to-day operations of the Harbor, including the assignment of moorings and Harbor Patrol, lifeguard services contracted with the County of Los Angeles, restroom maintenance, and waterfront trash collection.

Harbor Capital includes activity related to the maintenance of existing Harbor infrastructure and the acquisition of new Harbor capital assets.

Fuel Dock includes activity related to the operations and capital maintenance of the Fuel Dock.

Harbor Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 79 Historical Expenditures by Fund
Fuel Dock Harbor Capital Harbor Operations
FY27 Expenditures by Fund
Harbor Capital $15,468,357 63.34%
Harbor Operations $8,590,753 35.18%
Fuel Dock $362,500 1.48%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Harbor Operations $7,974,832 $8,009,232 $7,632,277 $8,590,753 Salaries & Benefits $3,459,730 $3,494,130 $3,341,180 $3,796,460 Salaries Regular $1,718,613 $1,726,613 $1,711,866 $1,796,442 Salaries Part Time $445,686 $445,686 $411,436 $431,959
Overtime Regular $58,641 $58,641 $20,500 $87,521
FICA Retirement $406,112 $406,862 $389,682 $423,011
CalPERS UAL
Payment
$283,730 $283,730 $274,614 $506,372
Health/Life
Insurance
$356,778 $382,428 $350,174 $363,552
Workers Comp $156,204 $156,204 $156,204 $146,574
Unemployment
Insurance
$6,031 $6,031 - $7,100
Uniforms $27,935 $27,935 $26,704 $33,930
Internal Services $1,328,352 $1,328,352 $1,328,352 $1,466,403 $8M $8M
$11M
$24M
FY2024 FY2025 FY2026 FY2027
0 $10M
$20M
$30M

24.4M
Expenditures by Fund
Harbor Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 80 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Insurance
Overhead
Allocation
$281,565 $281,565 $281,565 $357,452
Admin Overhead
Allocation
$988,570 $988,570 $988,570 $1,046,713
Vehicle Overhead
Allocation
$58,217 $58,217 $58,217 $62,238
Contract Services $2,114,000 $2,114,000 $1,954,270 $2,106,500 Professional
Services
- - - $32,500
Mo. Maint Hbr
Computers
$50,000 $50,000 $40,000 $50,000
Waterfront Trash
Contract
$225,000 $225,000 $225,000 $230,000
Professional
Services - Falconer
$40,000 $40,000 $20,000 $40,000
City Attorney
Retainer
$25,000 $25,000 $15,000 $25,000
County Beaches
Contract
$1,100,000 $1,100,000 $1,042,770 $1,100,000
Shoreboat
Services
$289,000 $289,000 $289,000 $289,000
Contractual
Services - General
$7,500 $7,500 $7,500 $10,000
Beach
Maintenance
$77,500 $77,500 $15,000 $20,000
Restroom
Maintenance
$75,000 $75,000 $75,000 $85,000
Shower Facility
Contract
$225,000 $225,000 $225,000 $225,000
Maintenance &
Operations
$1,072,750 $1,072,750 $1,008,476 $1,221,390
Safety Supplies $6,000 $6,000 $2,500 $6,000
Trash Bags $1,500 $1,500 $1,500 $1,000
FoulWeather
Gear
$5,000 $5,000 $5,000 $5,000
Personal
Protective
Equipment (PPE)
$7,000 $7,000 $5,000 $7,000
Small Tools $7,000 $7,000 $5,000 $5,000
Special Dept
Expense
$23,000 $23,000 $23,000 $23,500
Office Supplies $7,500 $7,500 $5,000 $6,000
Communications $16,000 $16,000 $22,500 $20,289
Advertising $3,250 $3,250 $500 $3,000
Utilities - General $37,500 $37,500 $20,000 $35,000
Utilities -
Electricity
$100,000 $100,000 $80,000 $75,000
Utilities - Salt
Water
$108,000 $108,000 $108,000 $85,000
Utilities - Sewer $242,500 $242,500 $242,500 $307,101
Harbor Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 81 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Utilities - GasWtr
Dump
$142,500 $142,500 $142,500 $271,000
Rent - General $20,000 $20,000 $12,500 $20,000
Rent - SCICO Car
Parking
$2,500 $2,500 $1,000 $2,500
Rent - Casino
Dock Restrms
$16,000 $16,000 $10,000 $5,000
Rent - Fiber Line
IT
$15,000 $15,000 $35,000 $30,000
Insurance $118,000 $118,000 $110,476 $120,000
Miscellaneous
Expense
$2,000 $2,000 $2,000 $2,000
Membership and
Dues
$1,000 $1,000 $1,000 $1,000
Training and
Travel
$36,500 $36,500 $22,500 $41,000
Bank and CC Fees $100,000 $100,000 $100,000 $100,000
Gas, Diesel and Oil $55,000 $55,000 $50,000 $50,000
Maintenance of
Premises
- - $1,000 -
Harbor Capital $5,145,002 $5,814,002 $3,154,058 $15,468,357 Salaries & Benefits $57,646 $71,646 $47,324 $376,145
Salaries Regular $43,311 $56,061 $37,613 $261,689
Overtime Regular - - $1,000 $8,817
FICA Retirement $7,678 $8,678 $4,932 $46,707
CalPERS UAL
Payment
$184 $184 $178 $6,125
Health/Life
Insurance
$3,163 $3,413 $558 $47,940
Workers Comp $3,043 $3,043 $3,043 $1,167
Unemployment
Insurance
$117 $117 - $100
Uniforms $150 $150 - $3,600
Internal Services $519,134 $519,134 $519,134 $640,934
Admin Overhead
Allocation
$286,265 $286,265 $286,265 $396,403
Vehicle Overhead
Allocation
$232,868 $232,868 $232,868 $244,531
Contract Services $31,000 $31,000 $5,100 $32,000
Pesticide Spraying
- Harbor
$6,000 $6,000 $5,000 $7,000
Plumbing and
Electrical
$25,000 $25,000 - $25,000
Shower/Restroom
Maint
- - $100 -
Maintenance &
Operations
$354,000 $414,000 $257,500 $374,278
Special Dept
Expense
$500 $500 - $1,860
Communications $500 $500 $2,500 $2,418
Harbor Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 82 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Vehicle/Equip
Maintenance and
Repair
$60,000 $60,000 $55,000 $60,000
Maintenance of
Premises
$93,000 $93,000 $75,000 $95,000
Storm Damage $50,000 $50,000 $20,000 $50,000
Float Storage $25,000 $25,000 $45,000 $35,000
Mooring Maint &
Repair
$65,000 $65,000 $20,000 $70,000
Float
Maintenance
$60,000 $120,000 $40,000 $60,000
Capital Outlay $4,183,222 $4,778,222 $2,325,000 $14,045,000 Cap M&E -
Moorings
- - $15,000 -
Cap M&E -
Floats/Wharfs
$270,000 $865,000 $750,000 $765,000
Capital
Improvement
$1,510,000 $1,510,000 $300,000 $5,280,000
Cap M&E - Float
Anchor Chains
$20,000 $20,000 - $20,000
Security Cameras $10,000 $10,000 $10,000 $10,000
Cap M&E - Pier
Hoist
- - - $20,000
Harbor Mole
Phase II
$2,000,000 $2,000,000 $1,000,000 $7,500,000
Cap M&E - FD Pier
& Restrm
$100,000 $100,000 $50,000 $175,000
Cap M&E - Patrol
Boats
- - - $275,000
Vehicle
Replacement
$273,222 $273,222 $200,000 -
Fuel Dock $362,000 $362,000 $137,200 $362,500
Contract Services - - $1,200 -
Professional
Services
- - $1,200 -
Maintenance &
Operations
$112,000 $112,000 $101,000 $112,500
Special Dept
Expense
- - $2,000 -
Rent - Casino Fuel
Tanks
$87,000 $87,000 $87,000 $90,000
Fuel Dock Testing $15,000 $15,000 $10,000 $12,500
Fuel Dock Permits $10,000 $10,000 - $5,000
Maintenance of
Premises
- - $2,000 $5,000
Capital Outlay $250,000 $250,000 $35,000 $250,000
Cap M&E - Fuel
Dock
- - $10,000 $250,000
Capital
Improvement
$250,000 $250,000 $25,000 -
Harbor Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 83 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Total Expenditures $13,481,833 $14,185,233 $10,923,535 $24,421,610 Expenditures by Object Category
Expenditures within the Harbor Fund are classified as related to Salaries and Benefits, Maintenance and Operations, Contract Services, Internal Services and Capital Outlay.

Historical Expenditures by Object Category
Maintenance & Operations Internal Services Contract Services Salaries & Benefits Capital Outlay
FY27 Expenditures by Object Category
Capital Outlay $14,295,000 58.53%
Salaries & Benefits $4,172,605 17.09%
Contract Services $2,138,500 8.76%
Internal Services $2,107,337 8.63%
Maintenance & Operations $1,708,168 6.99%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Salaries & Benefits $3,517,376 $3,565,776 $3,388,504 $4,172,605 Internal Services $1,847,485 $1,847,485 $1,847,485 $2,107,337 Contract Services $2,145,000 $2,145,000 $1,960,570 $2,138,500 $8M $8M
$11M
$24M
FY2024 FY2025 FY2026 FY2027
0 $10M
$20M
$30M

24.4M
Expenditures by Object Category
Harbor Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 84 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Maintenance &
Operations
$1,538,750 $1,598,750 $1,366,976 $1,708,168
Capital Outlay $4,433,222 $5,028,222 $2,360,000 $14,295,000 Transfers Out - - - -
Total Expenditures $13,481,833 $14,185,233 $10,923,535 $24,421,610 Position Detail
Category FY 2024 Budgeted FY 2025 Budgeted FY 2026 Budgeted FY 2027 Budgeted Harbor Operations 25.6300 26.8900 26.2600 24.8700
Salaries Regular 20.2000 20.4500 20.4000 17.9500
Salaries Part Time 5.4300 6.4400 5.8600 6.9200
Harbor Capital 0.2500 0.2500 0.2500 3.1000
Salaries Regular 0.2500 0.2500 0.2500 3.1000
Total Authorized
FTEs

25.8800 27.1400 26.5100 27.9700
Position Summary
Harbor Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 85 Harbor Operations
Within the Harbor Fund, the City tracks operating activities of the harbor separately from capital activities and the fuel dock. Operating activities include Harbor Administration, Harbor Operations, including Harbor Patrol and Harbor Sanitation activities, and Public Works operations along the waterfront.

Harbor Operations are primarily funded by charges for services, including a portion of cross-channel and cruise ship wharfage dedicated to operations and nightly mooring revenues. Similar to other visitor-driven revenues in the General Fund, harbor operating revenues are budgeted conservatively below current year actuals for cross-channel wharfage and nightly moorings to ensure operations are fully funded without requiring record-setting levels of tourism year-after-year. Cruise ship wharfage revenues are estimated based on arriving vessels scheduled as of April 30th, assuming an 87% occupancy rate, compared to 92% occupancy rate experienced in the current year to date.

Harbor Administration accounts for 9.8% of budgeted expenditures. Harbor Operations, including Harbor Patrol, accounts for 56.2% of budgeted expenditures and Public Works accounts for the remaining 34.0% of budgeted expenditures. A breakdown of expenditures by type (e.g. Salaries and Benefits, Maintenance and Operations, Contract Services, and Internal Services) can be found in the next section of the budget document.

Historical Budget to Actual Comparison
Revenues vs Expenditures Summary
Revenue Actual Revenue Surplus Revenue Budgeted
Expenditures Actual Expenditures Budgeted
2024 2025 2026 2027
0 $3M
$5M
$8M
$10M
Harbor Operations
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 86 Comprehensive Fund Summary
Revenues by Revenue Source
Historical Revenue by Revenue Source
Investment Income Admission Tax Other Revenues
Charges for Services
Comprehensive Fund Summary
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Beginning Fund Balance - - - $1,646,783
Revenues
Admission Tax $200,000 $200,000 $290,150 $225,000
Charges for Services $7,288,000 $7,288,000 $8,247,411 $7,630,500 Other Revenues $626,000 $625,000 $656,500 $652,000
Fines and Forfeitures - - - -
Investment Income $85,000 $85,000 $85,000 $85,000
Transfers In - - - -
Total Revenues $8,199,000 $8,198,000 $9,279,061 $8,592,500 Expenditures
Salaries & Benefits $3,459,730 $3,494,130 $3,341,180 $3,796,460 Internal Services $1,328,352 $1,328,352 $1,328,352 $1,466,403 Contract Services $2,114,000 $2,114,000 $1,954,270 $2,106,500 Maintenance & Operations $1,072,750 $1,072,750 $1,008,476 $1,221,390 Transfers Out - - - -
Total Expenditures $7,974,832 $8,009,232 $7,632,277 $8,590,753 Total Revenues Less
Expenditures
$224,168 $188,768 $1,646,783 $1,747
Ending Fund Balance $224,168 $188,768 $1,646,783 $1,648,530 $8M
$8M
$9M
$9M
FY2024 FY2025 FY2026 FY2027
0 $3M
$5M
$8M
$10M
Harbor Operations
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 87 FY27 Revenues by Revenue Source
Charges for Services $7,630,500 88.8%
Other Revenues $652,000 7.6%
Admission Tax $225,000 2.6%
Investment Income $85,000 1.0%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Admission Tax $200,000 $200,000 $290,150 $225,000
Admission Tax $200,000 $200,000 $290,000 $225,000
Admission Tax
Penalties and
Interest
- - $150 -
Charges for Services $7,288,000 $7,288,000 $8,247,411 $7,630,500 Harbor Use Fees $450,000 $450,000 $475,000 $460,000
Wharfage Fees -
Cross Channel
$2,425,000 $2,425,000 $2,700,000 $2,500,000
Wharfage Fees -
Cruise Ship
$2,000,000 $2,000,000 $2,175,000 $2,108,000
Mooring Permits -
Annual
$260,000 $260,000 $260,000 $260,000
Harbor Transfer Fees $150,000 $150,000 $355,000 $150,000 Harbor Service
Charges - General
$2,000,000 $2,000,000 $2,280,147 $2,150,000
Mole Hoist Usage
Fees
$1,000 $1,000 $1,000 $1,000
MooringWait List
Charges
$1,000 $1,000 $1,000 $1,000
Harbor Tows $1,000 $1,000 $250 $500
Shoreboat Services - - $14 -
Other Revenues $626,000 $625,000 $656,500 $652,000
Rental Income $625,000 $625,000 $650,000 $650,000
Pier and Tideland
Rentals Penalties
and Interest
- - $3,500 $1,000
Harbor Use Fees
Penalties and
Interest
$1,000 - $3,000 $1,000

8.59M
Revenues by Revenue Source
Harbor Operations
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 88 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Investment Income $85,000 $85,000 $85,000 $85,000
Interest Income $85,000 $85,000 $85,000 $85,000
Total Revenues $8,199,000 $8,198,000 $9,279,061 $8,592,500 Expenditures by Department
Historical Comparison
Harbor Admin Public Works Harbor Ops
FY27 Operating Expenditures by Department
Harbor Ops $4,832,256 56.2%
Public Works $2,920,010 34.0%
Harbor Admin $838,487 9.8%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
PublicWorks $2,707,867 $2,717,317 $2,507,657 $2,920,010 Harbor Admin $755,605 $759,805 $723,745 $838,487
Harbor Ops $4,511,360 $4,532,110 $4,400,875 $4,832,256
Total Expenditures $7,974,832 $8,009,232 $7,632,277 $8,590,753 $7M
$7M $8M
$9M
FY2024 FY2025 FY2026 FY2027
0 $3M
$5M
$8M
$10M

8.59M
Expenditures by Department
Harbor Operations
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 89 Expenditures by Type
Historical Comparison
Maintenance & Operations Internal Services Contract Services Salaries & Benefits
FY27 Expenditures by Type
Salaries & Benefits $3,796,460 44.2%
Contract Services $2,106,500 24.5%
Internal Services $1,466,403 17.1%
Maintenance & Operations $1,221,390 14.2%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Salaries & Benefits $3,459,730 $3,494,130 $3,341,180 $3,796,460 Internal Services $1,328,352 $1,328,352 $1,328,352 $1,466,403 Contract Services $2,114,000 $2,114,000 $1,954,270 $2,106,500 Maintenance &
Operations
$1,072,750 $1,072,750 $1,008,476 $1,221,390
Transfers Out - - - -
Total Expenditures $7,974,832 $8,009,232 $7,632,277 $8,590,753 $7M
$7M $8M
$9M
FY2024 FY2025 FY2026 FY2027
0 $3M
$5M
$8M
$10M

8.59M
Expenditures by Type
Harbor Operations
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 90 Salaries and Benefits
Budgeted amounts for salaries and benefits are based on negotiated wages and benefits as outlined in MOUs with the applicable bargaining units and CalPERS unfunded pension liability payment schedules and represent 44.2% of Harbor Operations budgeted expenditures. Salaries and benefits within Harbor Operations include the following personnel:

Harbor Administration (1.90 FTE): Senior Harbor Operations Assistant (1.00), Harbor Master (0.90) Harbor Operations (17.22): Harbor Patrol Supervisors (2.00), Harbor Patrol Officers - Full-Time (9.00), Harbor Patrol Officers - PT (4.62), Harbor Sanitation Workers (1.60)
Harbor Public Works (5.75): Public Works Director (0.30), Project Manager (0.4), Maintenance Superintendents (0.50), Maintenance Lead Worker (0.25), Maintenance Workers - Full-TIme (3.60), Maintenance Workers - PartTime (0.70) Harbor Maintenance Workers (3.00 FTE) were included with Harbor Operations in prior budgets but have been reclassified to Harbor Capital as their job duties more accurately align with capital maintenance of the harbor.

Despite the reallocation of Harbor Maintenance personnel, Harbor Operations Salaries and Benefits increased by 13.6%, driven by increases in unfunded pension liability payments of $231,758, representing an 84.4% increase from the prior year liability payment. Previously, the City allocated pension liabilities between Classic and PEPRA membership separately, based on a weighted average of salary in each classification. Over time, as Classic employees retired, this approach skewed the costs to the Safety department with the most current Classic members rather than historical membership distributions representative of the liability as incurred. To correct this issue, Classic and PEPRA members in the Harbor Department and Fire Department were combined with unfunded pension liability allocated based on the weighted average of salary in each department rather than based on membership classification.

Expenditures by Department
Historical Expenditures by Department
Harbor Admin Public Works Harbor Ops
$3M
$3M $3M
$4M
FY2024 FY2025 FY2026 FY2027
0 $1M
$2M
$3M
$4M
Salaries and Benefits Fund 103
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 91 FY27 Expenditures by Department
Harbor Ops $2,578,741 67.9%
Public Works $789,272 20.8%
Harbor Admin $428,447 11.3%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Public Works $589,140 $598,590 $538,160 $789,272
Salaries Regular $337,332 $339,432 $312,788 $446,693
Salaries Part Time $20,564 $20,564 - $37,463
Overtime Regular $9,695 $9,695 $1,000 $10,595
FICA Retirement $58,094 $58,594 $55,708 $79,266
CalPERS UAL
Payment
$35,725 $35,725 $34,577 $66,689
Health/Life Insurance $95,315 $102,165 $102,670 $110,292 Workers Comp $25,832 $25,832 $25,832 $29,044
Unemployment
Insurance
$998 $998 - $1,400
Compensated
Absences
- - - -
Uniforms $5,585 $5,585 $5,585 $7,830
Harbor Admin $328,495 $332,695 $342,409 $428,447
Salaries Regular $227,727 $229,177 $241,074 $244,937
Overtime Regular $2,779 $2,779 $1,000 $2,835
FICA Retirement $44,565 $44,815 $46,868 $48,555
CalPERS UAL
Payment
$935 $935 $905 $66,402
Health/Life Insurance $34,015 $36,515 $35,534 $46,620
Workers Comp $16,198 $16,198 $16,198 $15,299
Unemployment
Insurance
$626 $626 - $800
Employee Benefits
Special
- - - -
Health
Reimbursement
- - - -
Uniforms $1,650 $1,650 $830 $3,000
Harbor Ops $2,542,095 $2,562,845 $2,460,611 $2,578,741

3.8M
Expenditures by Department
Salaries and Benefits Fund 103
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 92 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Harbor Sunglasses
(MOU)
- - - -
Salaries Regular $1,153,554 $1,158,004 $1,158,004 $1,104,812 Salaries Part Time $425,122 $425,122 $411,436 $394,497
Overtime Regular $46,167 $46,167 $18,500 $74,091
FICA Retirement $303,453 $303,453 $287,106 $295,189
CalPERS UAL
Payment
$247,070 $247,070 $239,132 $373,281
Health/Life Insurance $227,448 $243,748 $211,970 $206,640 Workers Comp $114,174 $114,174 $114,174 $102,231
Unemployment
Insurance
$4,407 $4,407 - $4,900
Uniforms $20,700 $20,700 $20,289 $23,100
Total Expenditures $3,459,730 $3,494,130 $3,341,180 $3,796,460 Position Detail
Category FY 2024 Budgeted FY 2025 Budgeted FY 2026 Budgeted FY 2027 Budgeted Salaries & Benefits 25.63 26.89 26.26 24.87
PublicWorks 4.68 5.32 4.88 5.75
Harbor Admin 1.90 1.90 1.90 1.90
Harbor Ops 19.05 19.67 19.48 17.22
Total Authorized
FTEs

25.63 26.89 26.26 24.87
Position Summary
Salaries and Benefits Fund 103
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 93 Contract Services
Contract services for Harbor Operations totaling $2.11 million represent 24.5% of the Harbor Operations budget. The City contract for lifeguard services with the County of Los Angeles Fire Department represents over half of all budgeted expenditures for Contract Services. Other significant contract services include the Shoreboat Subsidy, budgeted at $289 thousand or 13.7%, Waterfront Trash Collection, budgeted at $230 thousand or 10.9%, and Restroom and Shower Maintenance, budgeted at $225 thousand or 10.7%.

Expenditures by Department
Historical Comparison
Harbor Admin Harbor Ops Public Works
FY27 Expenditures by Department
Public Works $1,732,500 82.25%
Harbor Ops $299,000 14.19%
Harbor Admin $75,000 3.56%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Public Works $1,742,500 $1,742,500 $1,602,770 $1,732,500 Professional Services - - - $32,500
Waterfront Trash
Contract
$225,000 $225,000 $225,000 $230,000
$2M $2M $2M
$2M
FY2024 FY2025 FY2026 FY2027
0 $1M
$2M
$3M

2.11M
Expenditures by Department
Contract Services Fund 103
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 94 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Professional Services
- Falconer
$40,000 $40,000 $20,000 $40,000
County Beaches
Contract
$1,100,000 $1,100,000 $1,042,770 $1,100,000
Beach Maintenance $77,500 $77,500 $15,000 $20,000
PressureWashing
Services
- - - -
Restroom
Maintenance
$75,000 $75,000 $75,000 $85,000
Shower Facility
Contract
$225,000 $225,000 $225,000 $225,000
State DBAWLoan
Interest
- - - -
Retirement Of
Principal
- - - -
Harbor Admin $75,000 $75,000 $55,000 $75,000
Mo. Maint Hbr
Computers
$50,000 $50,000 $40,000 $50,000
City Attorney
Retainer
$25,000 $25,000 $15,000 $25,000
Harbor Ops $296,500 $296,500 $296,500 $299,000
Shoreboat Services $289,000 $289,000 $289,000 $289,000
Contractual Services
- General
$7,500 $7,500 $7,500 $10,000
Total Expenditures $2,114,000 $2,114,000 $1,954,270 $2,106,500 Contract Services Fund 103
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 95 Maintenance and Operations
Maintenance and Operations expenditures totaling $1.22 million represent 14.2% of the Harbor Operations budget.

Utilities, including sewer, saltwater and solid waste assessments, represent 60.4% of all Maintenance and Operations expenditures. While Utilities — Saltwater decreased by $23 thousand or 21.3%, Utilities - Sewer and Utilities - Solid Waste increased by $64,601 (26.7%) and $128,500 (90.2%), respectively, based on the findings of the cost of service studies adopted in May 2026.

Other significant Maintenance and Operations expenses include additional harbor insurance totaling $120,000 or 9.8% and credit card processing fees totaling $100,000 or 8.2%.

Expenditures by Department
Historical Comparison
Public Works Harbor Admin Harbor Ops
FY27 Expenditures by Department
Harbor Ops $1,031,221 84.43%
Harbor Admin $169,540 13.88%
Public Works $20,629 1.69%
$$882222KK
$$990077KK
$$$111,,,000000888KKK
$$$111,,,222222111KKK
FY2024 FY2025 FY2026 FY2027
0 $500K
$1,000K
$1,500K

1.22M
Maintenance and Operations Fund 103
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 96 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Public Works $28,000 $28,000 $18,500 $20,629
Safety Supplies $1,000 $1,000 - $1,000
Trash Bags $1,500 $1,500 $1,500 $1,000
Special Dept
Expense
$3,500 $3,500 $2,000 $3,960
Communications $1,000 $1,000 $3,000 $3,669
Rent - Casino Dock
Restrms
$16,000 $16,000 $10,000 $5,000
Miscellaneous
Expense
$2,000 $2,000 $2,000 $2,000
Training and Travel $3,000 $3,000 - $4,000
Harbor Admin $168,250 $168,250 $142,476 $169,540
Special Dept
Expense
$6,000 $6,000 $6,000 $6,040
Office Supplies $7,500 $7,500 $5,000 $6,000
Communications $3,000 $3,000 $3,500 $4,000
Advertising $3,250 $3,250 $500 $3,000
Rent - General $20,000 $20,000 $12,500 $20,000
Rent - SCICO Car
Parking
$2,500 $2,500 $1,000 $2,500
Insurance $118,000 $118,000 $110,476 $120,000
Membership and
Dues
$1,000 $1,000 $1,000 $1,000
Training and Travel $7,000 $7,000 $2,500 $7,000
Harbor Ops $876,500 $876,500 $847,500 $1,031,221
Safety Supplies $5,000 $5,000 $2,500 $5,000
FoulWeather Gear $5,000 $5,000 $5,000 $5,000
Personal Protective
Equipment (PPE)
$7,000 $7,000 $5,000 $7,000
Small Tools $7,000 $7,000 $5,000 $5,000
Special Dept
Expense
$13,500 $13,500 $15,000 $13,500
Communications $12,000 $12,000 $16,000 $12,620
Utilities - General $37,500 $37,500 $20,000 $35,000
Utilities - Electricity $100,000 $100,000 $80,000 $75,000 Utilities - SaltWater $108,000 $108,000 $108,000 $85,000 Utilities - Sewer $242,500 $242,500 $242,500 $307,101
Utilities - GasWtr
Dump
$142,500 $142,500 $142,500 $271,000
Rent - Fiber Line IT $15,000 $15,000 $35,000 $30,000
Training and Travel $26,500 $26,500 $20,000 $30,000
Bank and CC Fees $100,000 $100,000 $100,000 $100,000
Gas, Diesel and Oil $55,000 $55,000 $50,000 $50,000
Maintenance of
Premises
- - $1,000 -
Total Expenditures $1,072,750 $1,072,750 $1,008,476 $1,221,390 Expenditures by Department
Maintenance and Operations Fund 103
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 97 Harbor Capital
Harbor Capital reflects annual maintenance activities of harbor infrastructure, including floats, piers, ramps, and moorings, as well as new capital acquisitions and significant refurbishments of existing assets intended to extend their useful life.

During the prior fiscal year, the City increased the per passenger cross-channel and cruise ship wharfage fees to generate revenues sufficient to fund significant investments needed in the harbor. Cross-channel and cruise ship wharfage increases went into effect in September 2025 and January 2026, respectively. As the result of a full year with these increases, Harbor Capital charges for service are budgeted to increase by $869 thousand or 21.1% from the prior year. Grants and Intergovernmental Revenues represent the other sources of Harbor Capital revenues, with revenues received as reimbursements for actual expenditures incurred. During the current fiscal year, the City successfully obtained grant funding for several critical infrastructure projects, including $2.48 million for the South Beach Restoration Project, $1.00 million for the Green Pleasure Pier Decking Replacement Project, and $300 thousand for replacement of the Pier End Float. In addition, the City anticipates awarding the design-build contract for the Cabrillo Mole Ferry Terminal Rehabilitation Project, with construction anticipated to start during the second half of the upcoming fiscal year.

While Capital Outlays account for 90.8% of budgeted expenditures, the City also budgets capital maintenance activities for Harbor Capital. Salaries and benefits, totaling $346 thousand, represent 2.4% of the Harbor Capital budget. Salaries and benefits include two full-time Harbor Maintenance Workers, one Maintenance Lead Worker, and a portion of the Harbor Master's labor costs (0.10 FTE). Harbor Maintenance Workers were budgeted with Harbor Operations in previous budgets but were reassigned to Harbor Capital to better align the labor allocation to the positions' responsibilities. Maintenance and Operations expenditures, totaling $374 thousand, represent an additional

2.4% of Harbor Capital budgeted expenditures. Internal Service expenditures totaling $629 thousand represent 4.1% of budgeted expenditures for Harbor Capital, which represent 9.6% of General Administration expenditures and 22.0% of Vehicle Maintenance expenditures.

Harbor Capital
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 98 Summary
Historical Comparison
Comprehensive Fund Summary
Revenue Actual Revenue Budgeted Expenditures Actual
Expenditures Budgeted
2024 2025 2026 2027
0 $5M
$10M
$15M
$20M
Comprehensive Fund Summary
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Beginning Fund Balance $2,436,193 $2,436,193 $2,436,193 $3,292,135 Revenues
Intergovernmental $2,000,000 $2,000,000 $1,000,000 $5,000,000 Grants $300,000 $300,000 - $4,080,000
Charges for Services $2,395,000 $2,395,000 $2,985,000 $3,854,000 Other Revenues - - - -
Investment Income $25,000 $25,000 $25,000 $25,000
Gain on Disposal of Capital
Assets
- - - -
Transfers In - - - -
Total Revenues $4,720,000 $4,720,000 $4,010,000 $12,959,000 Expenditures
Salaries & Benefits $57,646 $71,646 $47,324 $376,145
Internal Services $519,134 $519,134 $519,134 $640,934
Contract Services $31,000 $31,000 $5,100 $32,000
Maintenance & Operations $354,000 $414,000 $257,500 $374,278 Capital Outlay $4,183,222 $4,778,222 $2,325,000 $14,045,000 Harbor Capital
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 99 Revenues by Revenue Source
Historical Comparison
Transfers In Investment Income Grants
Intergovernmental Charges for Services
FY27 Revenues by Revenue Source
Intergovernmental $5,000,000 38.6%
Grants $4,080,000 31.5%
Charges for Services $3,854,000 29.7%
Investment Income $25,000 0.2%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Intergovernmental $2,000,000 $2,000,000 $1,000,000 $5,000,000 Federal Transit Grant $2,000,000 $2,000,000 $1,000,000 $5,000,000 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Transfers Out - - - -
Total Expenditures $5,145,002 $5,814,002 $3,154,058 $15,468,357 Total Revenues Less
Expenditures
-$425,002 -$1,094,002 $855,942 -$2,509,357
Ending Fund Balance $2,011,191 $1,342,191 $3,292,135 $782,778 $2M $1M
$4M
$13M
FY2024 FY2025 FY2026 FY2027
0 $5M
$10M
$15M
13M
Revenues by Revenue Source
Harbor Capital
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 100 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Grants $300,000 $300,000 - $4,080,000
DBAWGrant $300,000 $300,000 - $4,080,000
Charges for Services $2,395,000 $2,395,000 $2,985,000 $3,854,000 Wharfage Fees -
Cross Channel
$1,850,000 $1,850,000 $2,450,000 $2,800,000
Wharfage Fees -
Cruise Ship
$545,000 $545,000 $535,000 $1,054,000
Investment Income $25,000 $25,000 $25,000 $25,000
Interest Income $25,000 $25,000 $25,000 $25,000
Total Revenues $4,720,000 $4,720,000 $4,010,000 $12,959,000 Expenditures by Category
Historical Expenditures by Object Category
Contract Services Salaries & Benefits Maintenance & Operations Internal Services Capital Outlay
FY27 Expenditures by Category
Capital Outlay $14,045,000 90.8%
Internal Services $640,934 4.1%
Salaries & Benefits $376,145 2.4%
Maintenance & Operations $374,278 2.4%
Contract Services $32,000 0.2%
$1M $1M
$3M
$15M
FY2024 FY2025 FY2026 FY2027
0 $5M
$10M
$15M
$20M

15.5M
Harbor Capital
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 101 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Salaries & Benefits $57,646 $71,646 $47,324 $376,145
Salaries Regular $43,311 $56,061 $37,613 $261,689
Overtime Regular - - $1,000 $8,817
FICA Retirement $7,678 $8,678 $4,932 $46,707
CalPERS UAL
Payment
$184 $184 $178 $6,125
Health/Life Insurance $3,163 $3,413 $558 $47,940
Workers Comp $3,043 $3,043 $3,043 $1,167
Unemployment
Insurance
$117 $117 - $100
Uniforms $150 $150 - $3,600
Internal Services $519,134 $519,134 $519,134 $640,934
Insurance Overhead
Allocation
- - - -
Admin Overhead
Allocation
$286,265 $286,265 $286,265 $396,403
Vehicle Overhead
Allocation
$232,868 $232,868 $232,868 $244,531
Contract Services $31,000 $31,000 $5,100 $32,000
Pesticide Spraying -
Harbor
$6,000 $6,000 $5,000 $7,000
Plumbing and
Electrical
$25,000 $25,000 - $25,000
Shower/Restroom
Maint
- - $100 -
Maintenance &
Operations
$354,000 $414,000 $257,500 $374,278
Special Dept
Expense
$500 $500 - $1,860
Communications $500 $500 $2,500 $2,418
Vehicle/Equip
Maintenance and
Repair
$60,000 $60,000 $55,000 $60,000
Maintenance of
Premises
$93,000 $93,000 $75,000 $95,000
Storm Damage $50,000 $50,000 $20,000 $50,000
Float Storage $25,000 $25,000 $45,000 $35,000
Mooring Maint &
Repair
$65,000 $65,000 $20,000 $70,000
Float Maintenance $60,000 $120,000 $40,000 $60,000
Capital Outlay $4,183,222 $4,778,222 $2,325,000 $14,045,000 Harbor Mole Other - - - -
Cap M&E - Moorings - - $15,000 -
Cap M&E -
Floats/Wharfs
$270,000 $865,000 $750,000 $765,000
Capital
Improvement
$1,510,000 $1,510,000 $300,000 $5,280,000
Cap M&E - Float
Anchor Chains
$20,000 $20,000 - $20,000
Expenditures by Category
Harbor Capital
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 102 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Security Cameras $10,000 $10,000 $10,000 $10,000
Cap M&E - Pier Hoist - - - $20,000
Cap M&E - Pumpout - - - -
Environmental Study - - - -
Harbor Mole Phase II $2,000,000 $2,000,000 $1,000,000 $7,500,000 Harbor Mole
Improvement
- - - -
Cap M&E - FD Pier &
Restrm
$100,000 $100,000 $50,000 $175,000
Cap M&E - Patrol
Boats
- - - $275,000
Vehicle
Replacement
$273,222 $273,222 $200,000 -
Transfers Out - - - -
Transfers Out - Other - - - -
Total Expenditures $5,145,002 $5,814,002 $3,154,058 $15,468,357 Position Detail
Category FY 2024 Budgeted FY 2025 Budgeted FY 2026 Budgeted FY 2027 Budgeted Harbor Capital 0.25 0.25 0.25 3.10
Salaries Regular 0.25 0.25 0.25 3.10
Total Authorized
FTEs

0.25 0.25 0.25 3.10
Position Summary
Harbor Capital
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 103 Fuel Dock
Fuel Dock revenues include $30,000 in lease payments for contracted operations. Fuel Dock operating expenditures are budgeted at $112,500, primarily from budgeted rent expenditures totaling $90 thousand. Capital outlays are to complete the roofing on the above-ground fuel tank structure.

Comprehensive Fund Summary
Expenditures by Object Category
Historical Expenditures by Object Category
Contract Services Maintenance & Operations Capital Outlay Comprehensive Fund Summary
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Beginning Fund Balance - - - -$107,200
Revenues
Charges for Services $30,000 $30,000 $30,000 $30,000
Total Revenues $30,000 $30,000 $30,000 $30,000
Expenditures
Contract Services - - $1,200 -
Maintenance & Operations $112,000 $112,000 $101,000 $112,500 Capital Outlay $250,000 $250,000 $35,000 $250,000
Total Expenditures $362,000 $362,000 $137,200 $362,500
Total Revenues Less
Expenditures
-$332,000 -$332,000 -$107,200 -$332,500
Ending Fund Balance -$332,000 -$332,000 -$107,200 -$439,700 $17K
$$220044KK
$$113377KK
$$336633KK
FY2024 FY2025 FY2026 FY2027
0 $100K
$200K
$300K
$400K
Fuel Dock
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 104 FY27 Expenditures by Object Category
Capital Outlay $250,000 69.0%
Maintenance & Operations $112,500 31.0%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Contract Services - - $1,200 -
Professional Services - - $1,200 -
Maintenance &
Operations
$112,000 $112,000 $101,000 $112,500
Special Dept
Expense
- - $2,000 -
Rent - Casino Fuel
Tanks
$87,000 $87,000 $87,000 $90,000
Fuel Dock Testing $15,000 $15,000 $10,000 $12,500
Fuel Dock Permits $10,000 $10,000 - $5,000
Maintenance of
Premises
- - $2,000 $5,000
Capital Outlay $250,000 $250,000 $35,000 $250,000
Cap M&E - Fuel Dock - - $10,000 $250,000
Capital
Improvement
$250,000 $250,000 $25,000 -
Total Expenditures $362,000 $362,000 $137,200 $362,500
363K
Expenditures by Object Category
Fuel Dock
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 105 Sewer Fund
The Sewer Fund is used to account for the operation and maintenance of the collection and distribution system and the waste water treatment plant (WWTP).

As an enterprise fund, the Sewer Fund is funded through service charges to users of the sewer system. Sewer service rates are determined based on the findings of a cost of service study pursuant to Proposition 218 requirements. Sewer revenues are budgeted to increase by 9.5% in the upcoming fiscal year to provide additional funding for significant capital investment. Sewer service charges are assessed on parcels through the property tax roll by the County of Los Angeles.

Contract services account for 45.5% of budgeted expenditures. The City contracts with PERC Water Corporation for the operation of the WWTP, which accounts for 90.1% of contract service expenditures and 41.0% of total fund expenditures. The City allocates 75% of the PERC contract to the Sewer Fund, with the remaining 25% charged to the Saltwater and Storm Drain Funds. Other contract services include Fats, Oil Grease (FOG) inspection services, falconry services, and various testing and permitting services. Capital outlays account for 23.6% of budgeted expenditures and are outlined in the Capital Improvement Plan section of the budget document. Maintenance and operations account for 12.3% of budgeted expenditures. Utilities at the wastewater treatment plant and pump stations account for over half of all maintenance and operations expenditures. Internal service charges account for 11.6% of budgeted expenditures, with the Sewer Fund responsible for 6.5% of the General Administration Fund, 8.6% of the Insurance Fund, and 13.5% of the Vehicle Maintenance Fund. Lastly, salaries and benefits account for 7.0% of budgeted expenditures, with 1.75 FTEs from Public Works and 0.20 FTEs from Code Enforcement charged to the fund.

Summary
Historical Comparison
Revenue Actual Revenue Surplus Revenue Budgeted
Expenditures Actual Expenditures Budgeted
2024 2025 2026 2027
0 $1M
$2M
$3M
$4M
$5M
Sewer Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 106 Comprehensive Fund Summary
Revenues by Revenue Source
Historical Comparison
Transfers In Investment Income Charges for Services
Comprehensive Fund Summary
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Beginning Fund Balance $1,392,079 $1,392,079 $1,392,079 $1,185,636 Revenues
Charges for Services $3,466,832 $3,466,832 $3,450,000 $3,787,730 Investment Income $43,500 $43,500 $43,500 $20,000
Gain on Disposal of Capital
Assets
- - - -
Transfers In - - - -
Total Revenues $3,510,332 $3,510,332 $3,493,500 $3,807,730 Expenditures
Salaries & Benefits $324,729 $363,679 $359,362 $316,805 Internal Services $501,556 $501,556 $501,556 $522,975
Contract Services $2,017,500 $2,017,500 $1,958,275 $2,058,000 Maintenance & Operations $535,175 $592,175 $520,750 $557,659 Capital Outlay $755,000 $755,000 $360,000 $1,067,500
Total Expenditures $4,133,960 $4,229,910 $3,699,943 $4,522,939 Total Revenues Less
Expenditures
-$623,628 -$719,578 -$206,443 -$715,209
Ending Fund Balance $768,451 $672,501 $1,185,636 $470,427 $3M $3M
$3M
$4M
FY2024 FY2025 FY2026 FY2027
0 $1M
$2M
$3M
$4M
Sewer Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 107 FY27 Revenues by Revenue Source
Charges for Services $3,787,730 99.5%
Investment Income $20,000 0.5%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Charges for Services $3,466,832 $3,466,832 $3,450,000 $3,787,730 Annual User Charge $3,456,832 $3,456,832 $3,435,000 $3,785,230 Sewer Lateral Fee $10,000 $10,000 $15,000 $2,500
Investment Income $43,500 $43,500 $43,500 $20,000
Interest Income $43,500 $43,500 $43,500 $20,000
Total Revenues $3,510,332 $3,510,332 $3,493,500 $3,807,730 Expenditures by Object Category
Historical Expenditures by Object Category
Salaries & Benefits Capital Outlay Maintenance & Operations Internal Services Contract Services

3.81M
Revenues by Revenue Source
$3M $3M
$4M
$5M
FY2024 FY2025 FY2026 FY2027
0 $2M
$4M
$6M
Sewer Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 108 FY27 Expenditures by Object Category
Contract Services $2,058,000 45.5%
Capital Outlay $1,067,500 23.6%
Maintenance & Operations $557,659 12.3%
Internal Services $522,975 11.6%
Salaries & Benefits $316,805 7.0%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Salaries & Benefits $324,729 $363,679 $359,362 $316,805 Salaries Regular $199,867 $233,167 $233,167 $193,655
Overtime Regular $4,199 $4,199 $6,700 $3,941
FICA Retirement $34,627 $37,677 $37,218 $34,102
CalPERS UAL
Payment
$34,783 $34,783 $33,665 $24,673
Health/Life Insurance $35,192 $37,792 $33,106 $47,148
Workers Comp $14,341 $14,341 $14,341 $10,496
Unemployment
Insurance
$555 $555 - $600
Uniforms $1,165 $1,165 $1,165 $2,190
Internal Services $501,556 $501,556 $501,556 $522,975
Insurance Overhead
Allocation
$88,833 $88,833 $88,833 $102,192
Admin Overhead
Allocation
$267,181 $267,181 $267,181 $270,713
Vehicle Overhead
Allocation
$145,543 $145,543 $145,543 $150,070
Contract Services $2,017,500 $2,017,500 $1,958,275 $2,058,000 Professional Services $52,500 $52,500 $80,000 $55,000
Professional Services
- C&D Order
$72,500 $72,500 - $50,000
Professional Services
- H2S Control
$300,000 $300,000 $71,475 -
Professional Services
- Falconer
$60,000 $60,000 $66,300 $63,000
City Attorney
Retainer
$13,000 $13,000 $13,000 $15,000

4.52M
Expenditures by Object Category
Sewer Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 109 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Contractual Services
- PERC
$1,500,000 $1,500,000 $1,700,000 $1,855,000
SWRCB - Annual
Audit SSMP
$19,500 $19,500 $27,500 $20,000
Maintenance &
Operations
$535,175 $592,175 $520,750 $557,659
Special Dept
Expense
$2,175 $2,175 $250 $2,030
Communications $3,500 $3,500 $3,500 $4,829
Utilities - General $9,000 $9,000 $7,000 $10,000
Utilities - Electricity $125,000 $125,000 $200,000 $130,000 Utilities - GasWtr
Dump
$150,000 $150,000 $75,000 $156,000
Miscellaneous
Expense
$35,000 $92,000 $75,000 $36,050
Maintenance of
Premises
$50,000 $50,000 $10,000 $51,750
Storm Damage $10,500 $10,500 - $11,000
Emergency
Maintenance
$150,000 $150,000 $150,000 $156,000
Capital Outlay $755,000 $755,000 $360,000 $1,067,500
Sewer Capital
Improvement
$755,000 $755,000 $360,000 $1,067,500
Total Expenditures $4,133,960 $4,229,910 $3,699,943 $4,522,939 Position Detail
Category FY 2024 Budgeted FY 2025 Budgeted FY 2026 Budgeted FY 2027 Budgeted Sewer Operations 1.85 2.10 1.85 1.95
Administration 0.20 0.20 0.20 0.20
PublicWorks 1.65 1.90 1.65 1.75
Total Authorized
FTEs

1.85 2.10 1.85 1.95
Position Summary
Sewer Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 110 Saltwater Fund
The Saltwater Fund is used to account for the operation and maintenance of the collection and distribution system related to saltwater service.

As an enterprise fund, the Saltwater Fund is funded through service charges to users of the sewer system. Saltwater service rates are determined based on the findings of a cost of service study pursuant to Proposition 218 requirements.

Saltwater revenues are budgeted to increase by 9.5% in the upcoming fiscal year to provide additional funding for significant capital investment. Saltwater service charges are assessed on parcels through the property tax roll by the County of Los Angeles.

Contract services account for 40.9% of budgeted expenditures. The City contracts with PERC Water Corporation for the operation of the WWTP, which accounts for 98.7% of contract service expenditures and 40.4% of total fund expenditures. The City allocates 20% of the PERC contract to the Sewer Fund, with the remaining 80% charged to the Sewer and Storm Drain Funds. Capital outlays account for 31.4% of budgeted expenditures and are outlined in the Capital Improvement Plan section of the budget document. Salaries and benefits account for 17.4% of budgeted expenditures, with 1.25 FTEs from Public Works charged to the fund. Internal service charges account for 9.7% of budgeted expenditures, with the Saltwater Fund responsible for 2.2% of the General Administration Fund and 2.4% of the Insurance Fund. Lastly, maintenance and operation expenditures account for the remaining 0.7% of budgeted expenditures.

Summary
Revenues vs Expenditures Summary
Revenue Actual Revenue Surplus Revenue Budgeted
Expenditures Actual Expenditures Budgeted
2024 2025 2026 2027
0 $250K
$500K
$750K
$1,000K
$1,250K
$1,500K
Saltwater Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 111 Comprehensive Fund Summary
Revenues by Revenue Source
Historical Comparison
Other Revenues Investment Income Charges for Services
Comprehensive Fund Summary
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Beginning Fund Balance $917,376 $917,376 $917,376 $834,851 Revenues
Charges for Services $924,883 $924,883 $925,000 $1,012,700 Other Revenues - - $4,000 -
Investment Income $18,000 $18,000 $18,000 $10,000
Transfers In - - - -
Total Revenues $942,883 $942,883 $947,000 $1,022,700
Expenditures
Salaries & Benefits $236,383 $264,333 $259,283 $211,726 Internal Services $109,346 $109,346 $109,346 $118,336
Contract Services $393,500 $393,500 $458,145 $499,300
Maintenance & Operations $8,050 $8,050 $2,750 $8,229
Capital Outlay $400,000 $400,000 $200,000 $382,500
Total Expenditures $1,147,279 $1,175,229 $1,029,525 $1,220,091 Total Revenues Less
Expenditures
-$204,396 -$232,346 -$82,525 -$197,391
Ending Fund Balance $712,980 $685,030 $834,851 $637,460 $$990088KK $$887711KK
$$994477KK
$$$111,,,000222333KKK
FY2024 FY2025 FY2026 FY2027
0 $500K
$1,000K
$1,500K
Saltwater Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 112 FY27 Revenues by Revenue Source
Charges for Services $1,012,700 99.0%
Investment Income $10,000 1.0%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Charges for Services $924,883 $924,883 $925,000 $1,012,700 Annual User Charge $924,883 $924,883 $925,000 $1,012,700 Other Revenues - - $4,000 -
Miscellaneous - - $4,000 -
Investment Income $18,000 $18,000 $18,000 $10,000
Interest Income $18,000 $18,000 $18,000 $10,000
Total Revenues $942,883 $942,883 $947,000 $1,022,700
Expenditures by Object Category
Historical Comparison
Maintenance & Operations Internal Services Capital Outlay Salaries & Benefits Contract Services

1.02M
Revenues by Revenue Source
$$772299KK $$775511KK
$$$111,,,000333000KKK
$$$111,,,222222000KKK
FY2024 FY2025 FY2026 FY2027
0 $500K
$1,000K
$1,500K
Saltwater Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 113 FY27 Expenditures by Object Category
Contract Services $499,300 40.9%
Capital Outlay $382,500 31.4%
Salaries & Benefits $211,726 17.4%
Internal Services $118,336 9.7%
Maintenance & Operations $8,229 0.7%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Salaries & Benefits $236,383 $264,333 $259,283 $211,726 Salaries Regular $146,730 $170,480 $168,762 $127,744
Overtime Regular $2,861 $2,861 $4,500 $1,847
FICA Retirement $25,173 $27,423 $27,047 $22,730
CalPERS UAL
Payment
$23,223 $23,223 $22,477 $19,359
Health/Life Insurance $26,542 $28,492 $25,051 $30,000
Workers Comp $10,512 $10,512 $10,512 $8,235
Unemployment
Insurance
$407 $407 - $400
Uniforms $935 $935 $935 $1,410
Internal Services $109,346 $109,346 $109,346 $118,336
Insurance Overhead
Allocation
$21,558 $21,558 $21,558 $29,007
Admin Overhead
Allocation
$87,788 $87,788 $87,788 $89,329
Contract Services $393,500 $393,500 $458,145 $499,300
Professional Services $6,000 $6,000 $5,000 $6,300
City Attorney
Retainer
- - $100 -
Contractual Services
- PERC
$387,500 $387,500 $453,045 $493,000
Maintenance &
Operations
$8,050 $8,050 $2,750 $8,229
Special Dept
Expense
$2,550 $2,550 $500 $2,630
Communications $3,000 $3,000 $1,750 $3,099
Maintenance of
Premises
$2,500 $2,500 $500 $2,500

1.22M
Expenditures by Object Category
Saltwater Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 114 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Capital Outlay $400,000 $400,000 $200,000 $382,500
Saltwater Cap
Improvement
$400,000 $400,000 $200,000 $382,500
Total Expenditures $1,147,279 $1,175,229 $1,029,525 $1,220,091 Position Detail
Category FY 2024 Budgeted FY 2025 Budgeted FY 2026 Budgeted FY 2027 Budgeted Saltwater Operations 1.35 1.60 1.35 1.25
PublicWorks 1.35 1.60 1.35 1.25
Total Authorized
FTEs

1.35 1.60 1.35 1.25
Position Summary
Saltwater Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 115 Solid Waste Fund
The Solid Waste Fund is used to account for waste collection operations and the management of the City-owned, Pebbly Beach Landfill.

As an enterprise fund, the Solid Waste Fund is funded through service charges to users of the waste collection service and landfill. Solid waste service rates are determined based on the findings of a cost of service study pursuant to Proposition 218 requirements. Solid Waste revenues are budgeted to increase by 2.0% in the upcoming fiscal year.

Solid waste service charges are assessed on parcels through the property tax roll by the County of Los Angeles.

Contract services account for 65.7% of budgeted expenditures. The City contracts with CR&R Environmental Services for waste collection and landfill operation services, which accounts for 90.6% of contract service expenditures and

59.5% of total fund expenditures. Other contract services include hazardous waste collection and disposal services.

Capital outlays account for 27.0% of budgeted expenditures and include permitting and engineering for the landfill expansion, as well as the replacement of the landfill's grinder/chipper. Internal service charges account for 5.9% of budgeted expenditures, with the Solid Waste Fund responsible for 4.2% of the General Administration Fund and 4.8% of the Insurance Fund. Salaries and benefits account for 0.8% of budgeted expenditures, with 0.20 FTEs from Code Enforcement charged to the fund for management of the green waste inspection program. Lastly, maintenance and operations account for 0.7% of budgeted expenditures, with the majority in this category related to rent at disposal locations.

Summary
Revenues vs Expenditures Summary
Revenue Actual Revenue Surplus Revenue Budgeted
Expenditures Actual Expenditures Budgeted
2024 2025 2026 2027
0 $1M
$2M
$3M
$4M
$5M
Solid Waste Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 116 Comprehensive Fund Summary
Revenues by Revenue Source
Historical Comparison
Other Revenues Transfers In Grants
Investment Income Charges for Services
Comprehensive Fund Summary
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Beginning Fund Balance $1,510,151 $1,510,151 $1,510,151 $1,948,260 Revenues
Grants - - $5,000 -
Charges for Services $3,180,561 $3,180,561 $3,120,000 $3,248,000 Other Revenues - - - -
Investment Income $104,500 $104,500 $104,500 $105,000
Transfers In - - - -
Total Revenues $3,285,061 $3,285,061 $3,229,500 $3,353,000 Expenditures
Salaries & Benefits $28,860 $28,860 $29,224 $31,016
Internal Services $195,882 $195,882 $195,882 $232,295
Contract Services $2,450,000 $2,478,000 $2,415,185 $2,595,000 Maintenance & Operations $27,500 $27,500 $16,100 $28,000 Capital Outlay $978,880 $973,880 $135,000 $1,065,750
Total Expenditures $3,681,122 $3,704,122 $2,791,391 $3,952,061 Total Revenues Less
Expenditures
-$396,061 -$419,061 $438,109 -$599,061
Ending Fund Balance $1,114,090 $1,091,090 $1,948,260 $1,349,199 $3M $3M
$3M $3M
FY2024 FY2025 FY2026 FY2027
0 $1M
$2M
$3M
$4M
Solid Waste Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 117 FY27 Revenues by Revenue Source
Charges for Services $3,248,000 96.9%
Investment Income $105,000 3.1%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Grants - - $5,000 -
Oil Recycling Grant - - $5,000 -
Charges for Services $3,180,561 $3,180,561 $3,120,000 $3,248,000 Annual User Charge $3,110,561 $3,110,561 $3,050,000 $3,173,000 Construction Debris $70,000 $70,000 $70,000 $75,000
Investment Income $104,500 $104,500 $104,500 $105,000
Interest Income $104,500 $104,500 $104,500 $105,000
Total Revenues $3,285,061 $3,285,061 $3,229,500 $3,353,000 Expenditures by Object Category
Historical Comparison
Maintenance & Operations Salaries & Benefits Internal Services Capital Outlay Contract Services

3.35M
Revenues by Revenue Source
$3M $3M $3M
$4M
FY2024 FY2025 FY2026 FY2027
0 $2M
$4M
$6M
Solid Waste Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 118 FY27 Expenditures by Object Category
Contract Services $2,595,000 65.7%
Capital Outlay $1,065,750 27.0%
Internal Services $232,295 5.9%
Salaries & Benefits $31,016 0.8%
Maintenance & Operations $28,000 0.7%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Salaries & Benefits $28,860 $28,860 $29,224 $31,016
Salaries Regular $16,859 $16,859 $16,859 $17,785
Overtime Regular $633 $633 $1,000 $1,009
FICA Retirement $3,045 $3,045 $3,054 $3,248
CalPERS UAL
Payment
$3,875 $3,875 $3,751 $2,572
Health/Life Insurance $3,110 $3,110 $3,301 $4,938
Workers Comp $1,230 $1,230 $1,230 $1,094
Unemployment
Insurance
$48 $48 - $100
Uniforms $60 $60 $30 $270
Internal Services $195,882 $195,882 $195,882 $232,295
Insurance Overhead
Allocation
$39,391 $39,391 $39,391 $56,941
Admin Overhead
Allocation
$156,492 $156,492 $156,492 $175,354
Contract Services $2,450,000 $2,478,000 $2,415,185 $2,595,000 Professional Services $5,000 $33,000 $33,000 $83,000
City Attorney
Retainer
$10,000 $10,000 $30,000 $10,500
HazardousWaste
Disposal
$140,000 $140,000 $80,000 $141,000
Sanitation Contract $2,285,000 $2,285,000 $2,262,185 $2,350,000 SWRCB - Annual
Permit
$10,000 $10,000 $10,000 $10,500
Maintenance &
Operations
$27,500 $27,500 $16,100 $28,000
Brown Bags $10,500 $10,500 - $10,500

3.95M
Expenditures by Object Category
Solid Waste Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 119 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Special Dept
Expense
$500 $500 $100 $500
Communications $500 $500 - $500
Rent - General $16,000 $16,000 $16,000 $16,500
Capital Outlay $978,880 $973,880 $135,000 $1,065,750
Capital
Improvement
$603,880 $603,880 $135,000 $1,065,750
Landfill Closure Fee $375,000 $370,000 - -
Total Expenditures $3,681,122 $3,704,122 $2,791,391 $3,952,061 Position Detail
Category FY 2024 Budgeted FY 2025 Budgeted FY 2026 Budgeted FY 2027 Budgeted Solid Waste
Operations

0.20 0.20 0.20 0.20
Administration 0.20 0.20 0.20 0.20
Total Authorized
FTEs

0.20 0.20 0.20 0.20
Position Summary
Solid Waste Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 120 Avalon Transit
The Avalon Transit Fund is used to account for the City's land transit program expenditures to the extent that they are not covered by Local Return and TDA funds, as recorded in the Local Transportation Fund. The City of Avalon operates an all-electric, app-based, point-to-point, micro-transit system called City of Avalon Seaside Transit (COAST) through its contract with Circuit, Inc.

As an enterprise fund, the Avalon Transit Fund is funded through fare-box revenues. The transit program in Avalon has also historically been subsidized through transfers from the General Fund, as fare-box revenues and Local Return funds are not sufficient to cover the cost of operations. Contract services account for 36.8% of budgeted expenditures.

The contract services amount represents an estimate of the City's contract with Circuit that is not covered by Local Return or TDA funds. Internal service charges account for 27.2% of budgeted expenditures, with the Avalon Transit Fund responsible for 1.4% of the General Administration Fund and 3.0% of the Vehicle Maintenance Fund. The Avalon Transit Fund is not assessed for costs associated with the Insurance Fund as transit activities are covered under a separate policy reflected in the maintenance and operations expenditure category. Maintenance and operations account for 23.7% of budgeted expenditures and also include vehicle maintenance costs performed by third-parties.

Lastly, salaries and benefits account for 12.4% of budgeted expenditures and include a portion of an Administrative Analyst's labor cost (0.25 FTE).

Comprehensive Fund Summary
Comprehensive Fund Summary
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Beginning Fund Balance -$187,158 -$187,158 -$187,158 -$269,216 Revenues
Charges for Services $110,000 $110,000 $110,000 $120,000 Other Revenues - - - -
Gain on Disposal of Capital
Assets
- - - -
Transfers In $210,000 $210,000 $210,000 $325,000
Total Revenues $320,000 $320,000 $320,000 $445,000
Expenditures
Salaries & Benefits $45,275 $45,275 $44,782 $41,960
Internal Services $153,639 $153,639 $153,639 $92,390
Contract Services $50,000 $50,000 $127,081 $125,000
Maintenance & Operations $61,625 $61,625 $76,556 $80,345 Capital Outlay - - - -
Total Expenditures $310,539 $310,539 $402,058 $339,695
Total Revenues Less
Expenditures
$9,461 $9,461 -$82,058 $105,305
Ending Fund Balance -$177,697 -$177,697 -$269,216 -$163,911 Avalon Transit
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 121 Revenues by Revenue Source
Historical Revenue by Revenue Source
Other Revenues Charges for Services Transfers In
FY27 Revenues by Revenue Source
Transfers In $325,000 73.0%
Charges for Services $120,000 27.0%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Charges for Services $110,000 $110,000 $110,000 $120,000 Dial-a-Ride Fare $110,000 $110,000 $110,000 $120,000
Transfers In $210,000 $210,000 $210,000 $325,000
Transfers In - General
Fund
$210,000 $210,000 $210,000 $325,000
Total Revenues $320,000 $320,000 $320,000 $445,000
$$337777KK
$99K
$$332200KK
$$444455KK
FY2024 FY2025 FY2026 FY2027
-$200K
0 $200K
$400K
$600K
445K
Revenues by Revenue Source
Avalon Transit
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 122 Expenditures by Object Category
Historical Expenditures by Object Category
Salaries & Benefits Maintenance & Operations Contract Services Internal Services
FY27 Expenditures by Object Category
Contract Services $125,000 36.8%
Internal Services $92,390 27.2%
Maintenance & Operations $80,345 23.7%
Salaries & Benefits $41,960 12.4%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Salaries & Benefits $45,275 $45,275 $44,782 $41,960
Salaries Regular $23,135 $23,135 $23,135 $23,598
FICA Retirement $4,585 $4,585 $4,480 $6,342
CalPERS UAL
Payment
$9,371 $9,371 $9,070 $3,522
Health/Life Insurance $6,432 $6,432 $6,411 $6,900
Workers Comp $1,687 $1,687 $1,687 $1,498
Unemployment
Insurance
$65 $65 - $100
Internal Services $153,639 $153,639 $153,639 $92,390
$$331177KK
$$222222KK
$$440022KK
$$334400KK
FY2024 FY2025 FY2026 FY2027
0 $200K
$400K
$600K
340K
Expenditures by Object Category
Avalon Transit
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 123 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Admin Overhead
Allocation
$95,422 $95,422 $95,422 $58,882
Vehicle Overhead
Allocation
$58,217 $58,217 $58,217 $33,508
Contract Services $50,000 $50,000 $127,081 $125,000
Contractual Services
- General
$50,000 $50,000 $127,081 $125,000
Maintenance &
Operations
$61,625 $61,625 $76,556 $80,345
Special Dept
Expense
$125 $125 - $150
Communications $500 $500 $250 $195
Advertising $2,000 $2,000 $500 -
Insurance $40,000 $40,000 $40,806 $45,000
Training and Travel $4,000 $4,000 $5,000 $5,000
Vehicle/Equip
Maintenance and
Repair
$15,000 $15,000 $30,000 $30,000
Total Expenditures $310,539 $310,539 $402,058 $339,695
Position Detail
Category FY 2024 Budgeted FY 2025 Budgeted FY 2026 Budgeted FY 2027 Budgeted Avalon Transit 0.25 0.25 0.25 0.25
Administration 0.25 0.25 0.25 0.25
Total Authorized
FTEs

0.25 0.25 0.25 0.25
Position Summary
Avalon Transit
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 124 Internal Service Funds
The City utilizes internal service funds to track costs for goods and services incurred internally in support of other funds or departments and then allocates those costs to the funds receiving the goods and services based on the amount of benefit received. Internal service funds include the General Administration Fund, Insurance Fund, and Vehicle Maintenance Fund.

Internal Service Allocations
Annually, during the budget development process, the Finance Department evaluates the allocation of internal service costs across funds and departments to ensure allocations are proportional to the amount of service received.

General Administration allocations are based on the average of expenditure amounts, expenditure volume, and FTE counts relative to each department and fund. Special revenue funds, including Local Transportation, Housing Authority, Street Administration, and Traffic Safety, are not assessed any internal service charges with their proportional share covered by the General Fund.

Insurance Fund allocations are based on similar criteria to General Administration, with departments which acquire separate insurance policies (e.g. Law Enforcement, which is included in the services contract with the Los Angeles County Sheriff's Department, Harbor Capital and Avalon Transit) excluded from the allocation. In addition, the amount allocated to funds is increased based on funds or departments with historical experience of significant claims (e.g.

Harbor Operations, and Sewer Fund).

Vehicle Maintenance Funds are allocated based on estimates of time spent by City mechanics and a review of actual expenditures. For the current fiscal year, the Fire Department's share was reduced. This reduction was made in consideration that the recent significant capital outlays in the Vehicle Maintenance Fund did not directly serve the Fire Department and recent vehicle acquisitions for the Fire Department have been charged directly to the Fire Department budget rather than through the Vehicle Maintenance Fund.

General Adm
Fund-Dept. Description
10225 General Fund Admin
10240 Law Enforcement
10245 Fire Department
10250 Public Works
10255 Planning
10260 Community Services
10265 Recreation
10350 Public Works
10370 Harbor Admin
10371 Harbor Operations
10470 Harbor Capital
10725 Sewer Admin
11225 Saltwater Admin
12325 Avalon Transit
13125 Solid Waste Admin
Insurance
Fund-Dept. Description
10225 General Fund Admin
10240 Law Enforcement
10245 Fire Department
10250 Public Works
10255 Planning
10260 Community Services
10265 Recreation
10350 Public Works
10370 Harbor Admin
10371 Harbor Operations
10470 Harbor Capital
10725 Sewer Admin
11225 Saltwater Admin
12325 Avalon Transit
13125 Solid Waste Admin
Vehicle Maint
Fund-Dept. Description
10225 General Fund Admin
10240 Law Enforcement
10245 Fire Department
10250 Public Works
10255 Planning
10260 Community Services
10265 Recreation
10350 Public Works
10370 Harbor Admin
10371 Harbor Operations
10470 Harbor Capital
10725 Sewer Admin
11225 Saltwater Admin
12325 Avalon Transit
13125 Solid Waste Admin
Internal Service Funds
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 125 Expenditures by Fund
Historical Expenditures by Fund
Vehicle Maintenance Insurance Fund General Administration FY27 Expenditures by Fund
General Administration $4,075,654 63.0%
Insurance Fund $1,286,042 19.9%
Vehicle Maintenance $1,112,157 17.2%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
General Administration $3,816,871 $3,866,871 $3,858,539 $4,075,654 Insurance Fund $1,080,260 $1,114,010 $1,046,291 $1,286,042 Vehicle Maintenance $1,159,341 $1,181,341 $1,181,586 $1,112,157 Total Expenditures $6,056,472 $6,162,222 $6,086,416 $6,473,853 $4M
$5M
$6M
$6M
FY2024 FY2025 FY2026 FY2027
0 $3M
$5M
$8M

6.47M
Expenditures by Fund
Internal Service Funds
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 126 General Administration
The General Administration Fund is used to account for expenditures related to elected officials, general services performed by the City Attorney, the City Manager's Office, City Clerk, Human Resources, Information Technology (IT) and Finance, as well as to account for retiree health insurance reimbursements and general maintenance and supplies for City Hall.

Administration, which includes the City Manager's Office, City Clerk, Human Resources, and IT, accounts for 46.6% of budgeted expenditures in the fund. General Government accounts for 24.4% of budgeted expenditures in the fund and includes utilities, maintenance of City Hall, retiree health insurance reimbursements, and contracted services with Townsend Consulting and external auditors. Finance accounts for 22.8% of budgeted expenditures and includes financial reporting and budgeting software in addition to department personnel. City Attorney and Elected Officials account for the remaining 6.2% of budgeted expenditures.

Salaries and benefits account for 69.5% of budgeted expenditures across all departments, increasing by 11.6% from the prior year's budget. A portion of the increase is attributable to changes in employee allocations, with portions of the City Manager and Assistant City Manager costs shifting from Housing Authority to the General Administration Fund.

The proposed budget also includes an increase in part-time hours available for the Administrative Assistant position.

Summary
Revenues vs Expenditures Summary
Revenue Actual Revenue Budgeted Expenditures Actual
Expenditures Budgeted
2024 2025 2026 2027
0 $1M
$2M
$3M
$4M
$5M
General Administration
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 127 Comprehensive Fund Summary
Expenditures by Department
Historical Expenditures by Department
City Treasurer City Council City Attorney
Finance General Government Administration
Comprehensive Fund Summary
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Beginning Fund Balance -$43,857 -$43,857 -$43,857 -$85,525 Revenues
Charges for Services $3,816,871 $3,816,871 $3,816,871 $4,150,513 Investment Income - - - -
Total Revenues $3,816,871 $3,816,871 $3,816,871 $4,150,513 Expenditures
Salaries & Benefits $2,577,871 $2,597,871 $2,539,889 $2,833,645 Contract Services $652,000 $652,000 $807,500 $690,000
Maintenance & Operations $537,000 $537,000 $451,150 $527,009 Capital Outlay $50,000 $80,000 $60,000 $25,000
Total Expenditures $3,816,871 $3,866,871 $3,858,539 $4,075,654 Total Revenues Less
Expenditures
- -$50,000 -$41,668 $74,859
Ending Fund Balance -$43,857 -$93,857 -$85,525 -$10,666 $3M
$3M
$4M
$4M
FY2024 FY2025 FY2026 FY2027
0 $2M
$4M
$6M
General Administration
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 128 FY27 Expenditures by Department
Administration $1,899,835 46.6%
General Government $995,500 24.4%
Finance $927,692 22.8%
City Attorney $204,000 5.0%
City Council $40,522 1.0%
City Treasurer $8,104 0.2%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
City Council $41,420 $41,420 $27,420 $40,522
Salaries & Benefits $21,420 $21,420 $21,420 $20,522
Maintenance &
Operations
$20,000 $20,000 $6,000 $20,000
City Treasurer $8,284 $8,284 $4,284 $8,104
Salaries & Benefits $4,284 $4,284 $4,284 $4,104
Maintenance &
Operations
$4,000 $4,000 - $4,000
City Attorney $173,000 $173,000 $325,000 $204,000
Contract Services $170,000 $170,000 $325,000 $200,000
Maintenance &
Operations
$3,000 $3,000 - $4,000
Administration $1,744,047 $1,758,897 $1,707,821 $1,899,835 Salaries & Benefits $1,645,547 $1,660,397 $1,620,171 $1,802,088 Contract Services $2,000 $2,000 $2,500 $2,000
Maintenance &
Operations
$96,500 $96,500 $85,150 $95,747
Finance $852,620 $857,770 $835,514 $927,692
Salaries & Benefits $681,620 $686,770 $669,014 $756,930 Contract Services $90,000 $90,000 $90,000 $86,000
Maintenance &
Operations
$81,000 $81,000 $76,500 $84,762
General Government $997,500 $1,027,500 $958,500 $995,500 Salaries & Benefits $225,000 $225,000 $225,000 $250,000 Contract Services $390,000 $390,000 $390,000 $402,000
Maintenance &
Operations
$332,500 $332,500 $283,500 $318,500

4.08M
Expenditures by Department
General Administration
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 129 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Capital Outlay $50,000 $80,000 $60,000 $25,000
Total Expenditures $3,816,871 $3,866,871 $3,858,539 $4,075,654 Expenditures by Object Category
Historical Expenditures by Object Category
Capital Outlay Maintenance & Operations Contract Services Salaries & Benefits
FY27 Expenditures by Object Category
Salaries & Benefits $2,833,645 69.5%
Contract Services $690,000 16.9%
Maintenance & Operations $527,009 12.9%
Capital Outlay $25,000 0.6%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Salaries & Benefits $2,577,871 $2,597,871 $2,539,889 $2,833,645 City Council $21,420 $21,420 $21,420 $20,522
Salaries Regular $18,000 $18,000 $18,000 $18,000
FICA Retirement $1,375 $1,375 $1,375 $1,377
$3M
$3M
$4M
$4M
FY2024 FY2025 FY2026 FY2027
0 $2M
$4M
$6M

4.08M
Expenditures by Object Category
General Administration
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 130 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Health/Life
Insurance
$780 $780 $780 -
Workers Comp $1,265 $1,265 $1,265 $1,145
City Treasurer $4,284 $4,284 $4,284 $4,104
Salaries Regular $3,600 $3,600 $3,600 $3,600
FICA Retirement $275 $275 $275 $275
Health/Life
Insurance
$156 $156 $156 -
Workers Comp $253 $253 $253 $229
Administration $1,645,547 $1,660,397 $1,620,171 $1,802,088 Salaries Regular $1,035,063 $1,040,063 $1,031,542 $1,149,825 Salaries Part Time $25,473 $25,473 $25,473 $40,761
Overtime Regular $6,041 $6,041 $6,041 $3,730
FICA Retirement $176,879 $178,029 $169,946 $201,961
CalPERS UAL
Payment
$193,205 $193,205 $186,997 $179,454
Health/Life
Insurance
$129,172 $137,872 $125,225 $145,122
Workers Comp $74,947 $74,947 $74,947 $76,336
Unemployment
Insurance
$2,892 $2,892 - $3,700
Uniforms $1,875 $1,875 - $1,200
Finance $681,620 $686,770 $669,014 $756,930
Salaries Regular $446,449 $446,449 $446,449 $476,404
Overtime Regular $10,838 $10,838 $500 $11,249
FICA Retirement $73,567 $73,567 $70,424 $79,478
CalPERS UAL
Payment
$39,194 $39,194 $37,935 $69,455
Health/Life
Insurance
$76,999 $82,149 $81,073 $89,400
Workers Comp $32,133 $32,133 $32,133 $29,544
Unemployment
Insurance
$1,240 $1,240 - $1,400
Uniforms $1,200 $1,200 $500 -
General
Government
$225,000 $225,000 $225,000 $250,000
Employee
Benefits Special
$225,000 $225,000 $225,000 $250,000
Contract Services $652,000 $652,000 $807,500 $690,000
City Attorney $170,000 $170,000 $325,000 $200,000
City Attorney
Retainer
$170,000 $170,000 $325,000 $200,000
Administration $2,000 $2,000 $2,500 $2,000
Professional
Services
$2,000 $2,000 $2,500 $2,000
Finance $90,000 $90,000 $90,000 $86,000
Professional
Services
$90,000 $90,000 $90,000 $86,000
General Administration
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 131 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
General
Government
$390,000 $390,000 $390,000 $402,000
Professional
Services
$75,000 $75,000 $75,000 $82,000
Accounting and
Auditing
$110,000 $110,000 $110,000 $115,000
Professional
Services -IT
$25,000 $25,000 $50,000 $25,000
Operation Costs -
IT
$180,000 $180,000 $155,000 $180,000
Maintenance &
Operations
$537,000 $537,000 $451,150 $527,009
City Council $20,000 $20,000 $6,000 $20,000
Training and
Travel
$20,000 $20,000 $6,000 $20,000
City Treasurer $4,000 $4,000 - $4,000
Training and
Travel
$4,000 $4,000 - $4,000
City Attorney $3,000 $3,000 - $4,000
Training and
Travel
$3,000 $3,000 - $4,000
Administration $96,500 $96,500 $85,150 $95,747
Election Expense $20,000 $20,000 $20,000 $10,000
Special Dept
Expense
$10,000 $10,000 $10,000 $14,890
Office Supplies - - $150 -
Communications $5,500 $5,500 $5,500 $6,357
Membership and
Dues
$34,000 $34,000 $30,000 $33,000
Training and
Travel
$15,000 $15,000 $12,500 $22,000
Travel- City
Manager
$5,000 $5,000 $3,500 $6,000
Gas, Diesel and Oil $7,000 $7,000 $3,500 $3,500
Finance $81,000 $81,000 $76,500 $84,762
Special Dept
Expense
$6,000 $6,000 $1,500 $5,940
Communications $4,000 $4,000 $4,000 $3,822
Monthly Software
Charges
$60,000 $60,000 $60,000 $62,000
Membership and
Dues
$1,000 $1,000 $1,000 $1,000
Training and
Travel
$10,000 $10,000 $10,000 $12,000
General
Government
$332,500 $332,500 $283,500 $318,500
Special Dept
Expense
$31,500 $31,500 $31,500 $30,000
Office Supplies $35,000 $35,000 $30,000 $30,000
Communications $30,000 $30,000 $24,000 $25,500
General Administration
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 132 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Advertising $12,500 $12,500 $8,000 $14,000
Utilities - General $22,500 $22,500 $22,500 $20,000
Utilities -
Electricity
$65,000 $65,000 $55,000 $65,000
Utilities -Internet $27,000 $27,000 $20,000 $30,000
Rent - Copier $10,000 $10,000 $4,500 $10,000
Rent - Mail
Machine
$9,000 $9,000 $3,000 $9,000
Bank and CC Fees $20,000 $20,000 $15,000 $15,000
Maintenance of
Premises
$70,000 $70,000 $70,000 $70,000
Capital Outlay $50,000 $80,000 $60,000 $25,000
General
Government
$50,000 $80,000 $60,000 $25,000
Cap M&E -
Computers
$50,000 $80,000 $60,000 $25,000
Total Expenditures $3,816,871 $3,866,871 $3,858,539 $4,075,654 Position Detail
Category FY 2024 Budgeted FY 2025 Budgeted FY 2026 Budgeted FY 2027 Budgeted General
Administration

18.75 18.85 19.35 19.77
City Council 5.00 5.00 5.00 5.00
City Treasurer 1.00 1.00 1.00 1.00
Administration 7.95 7.95 8.45 8.87
Finance 4.80 4.90 4.90 4.90
Total Authorized
FTEs

18.75 18.85 19.35 19.77
Position Summary
General Administration
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 133 Insurance
The City of Avalon is a member of the California Intergovernmental Risk Authority (CIRA), a statewide risk-sharing Joint Powers Authority (JPA) that provides comprehensive insurance and risk management services. The City purchases insurance coverage, including general liability, property, cyber liability, and pollution, through CIRA. In addition, the Insurance Fund budget includes budgeted expenditures for the City Attorney and additional funding to cover the selfinsured portion of potential claims payable.

Summary
Revenues vs Expenditures Summary
Comprehensive Fund Summary
Revenue Actual Revenue Surplus Revenue Budgeted
Expenditures Actual Expenditures Budgeted
2024 2025 2026 2027
0 $250K
$500K
$750K
$1,000K
$1,250K
$1,500K
Comprehensive Fund Summary
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Beginning Fund Balance $1,085,178 $1,085,178 $1,085,178 $939,147 Revenues
Charges for Services $880,260 $880,260 $880,260 $1,186,042 Other Revenues - - - -
Investment Income $20,000 $20,000 $20,000 $20,000
Total Revenues $900,260 $900,260 $900,260 $1,206,042
Expenditures
Salaries & Benefits - - - -
Insurance
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 134 Expenditures by Object Category
Historical Expenditures by Object Category
Salaries & Benefits Contract Services Maintenance & Operations FY27 Expenditures by Object Category
Maintenance & Operations $1,161,042 90.3%
Contract Services $125,000 9.7%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Contract Services $120,000 $120,000 $80,000 $125,000
City Attorney
Retainer
$120,000 $120,000 $80,000 $125,000
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Contract Services $120,000 $120,000 $80,000 $125,000
Maintenance & Operations $960,260 $994,010 $966,291 $1,161,042 Total Expenditures $1,080,260 $1,114,010 $1,046,291 $1,286,042 Total Revenues Less
Expenditures
-$180,000 -$213,750 -$146,031 -$80,000
Ending Fund Balance $905,178 $871,428 $939,147 $859,147 $$889966KK
$$$111,,,000222555KKK $$$111,,,000444666KKK
$$$111,,,222888666KKK
FY2024 FY2025 FY2026 FY2027
-$500K
0 $500K
$1,000K
$1,500K

1.29M
Expenditures by Object Category
Insurance
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 135 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Maintenance &
Operations
$960,260 $994,010 $966,291 $1,161,042
Insurance $925,260 $959,010 $961,291 $1,111,042
Reserve for Claims $25,000 $25,000 - $50,000
Claims Payable $10,000 $10,000 $5,000 -
Total Expenditures $1,080,260 $1,114,010 $1,046,291 $1,286,042 Insurance
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 136 Vehicle Maintenance
The Vehicle Maintenance Fund is used to account for the City mechanics' time and materials to manage the citywide fleet, which includes Fire Department emergency response vehicles, the Harbor Patrol Fleet, and Public Works vehicles and other equipment. Capital outlays represent 39.7% of budgeted expenditures. The City is looking to make significant investments over the next several fiscal years to modernize and update its fleet of vehicles. Salaries and benefits account for 36.4% of budgeted expenditures, with three full-time mechanics included in the budget. Lastly, maintenance and operating expenditures account for the remaining 23.8% of budgeted expenditures, primarily from supply purchases and rent for the garage facility.

Summary
Revenues vs Expenditures Summary
Comprehensive Fund Summary
Revenue Actual Revenue Surplus Revenue Budgeted
Expenditures Actual Expenditures Over Budget Expenditures Budgeted 2024 2025 2026 2027
0 $250K
$500K
$750K
$1,000K
$1,250K
$1,500K
Comprehensive Fund Summary
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Beginning Fund Balance $357,432 $357,432 $357,432 $368,187 Revenues
Charges for Services $1,164,341 $1,164,341 $1,164,341 $1,112,157 Other Revenues - - $15,000 -
Investment Income $13,000 $13,000 $13,000 -
Total Revenues $1,177,341 $1,177,341 $1,192,341 $1,112,157 Expenditures
Vehicle Maintenance
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 137 Revenues by Revenue Source
Historical Revenue by Revenue Source
Investment Income Other Revenues Charges for Services
FY27 Revenues by Revenue Source
Charges for Services $1,112,157 100.0%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Charges for Services $1,164,341 $1,164,341 $1,164,341 $1,112,157 Vehicle Overhead
Allocation
$1,164,341 $1,164,341 $1,164,341 $1,112,157
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Salaries & Benefits $340,341 $357,341 $352,911 $405,317 Maintenance & Operations $259,000 $259,000 $263,675 $264,840 Capital Outlay $560,000 $565,000 $565,000 $442,000
Total Expenditures $1,159,341 $1,181,341 $1,181,586 $1,112,157 Total Revenues Less
Expenditures
$18,000 -$4,000 $10,755 -
Ending Fund Balance $375,432 $353,432 $368,187 $368,187 $$882244KK $$882211KK
$$$111,,,111999222KKK
$$$111,,,111111222KKK
FY2024 FY2025 FY2026 FY2027
0 $500K
$1,000K
$1,500K

1.11M
Revenues by Revenue Source
Vehicle Maintenance
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 138 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Other Revenues - - $15,000 -
Miscellaneous - - $15,000 -
Investment Income $13,000 $13,000 $13,000 -
Interest Income $13,000 $13,000 $13,000 -
Total Revenues $1,177,341 $1,177,341 $1,192,341 $1,112,157 Expenditures by Object Category
Historical Expenditures by Object Category
Capital Outlay Maintenance & Operations Salaries & Benefits FY27 Expenditures by Object Category
Capital Outlay $442,000 39.7%
Salaries & Benefits $405,317 36.4%
Maintenance & Operations $264,840 23.8%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Salaries & Benefits $340,341 $357,341 $352,911 $405,317 Salaries Regular $207,292 $219,092 $219,092 $230,286
Overtime Regular $7,773 $7,773 $3,000 $8,531
FICA Retirement $32,766 $32,766 $34,269 $36,830
$$552233KK
$$559966KK
$$$111,,,111888222KKK
$$$111,,,111111222KKK
FY2024 FY2025 FY2026 FY2027
0 $500K
$1,000K
$1,500K

1.11M
Expenditures by Object Category
Vehicle Maintenance
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 139 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
CalPERS UAL
Payment
$914 $914 $885 $33,949
Health/Life Insurance $71,700 $76,900 $76,639 $76,980
Workers Comp $15,113 $15,113 $15,113 $14,441
Unemployment
Insurance
$583 $583 - $700
Uniforms $4,200 $4,200 $3,914 $3,600
Maintenance &
Operations
$259,000 $259,000 $263,675 $264,840
Small Tools $5,000 $5,000 $7,175 $7,500
Special Dept
Expense
$5,000 $5,000 $4,000 $5,000
Communications $4,000 $4,000 $2,500 $2,340
Rent - Garage Facility $90,000 $90,000 $90,000 $90,000
Training and Travel $5,000 $5,000 - $5,000
Vehicle/Equip
Maintenance and
Repair
$150,000 $150,000 $160,000 $155,000
Capital Outlay $560,000 $565,000 $565,000 $442,000
Vehicle
Replacement
$560,000 $565,000 $565,000 $442,000
Total Expenditures $1,159,341 $1,181,341 $1,181,586 $1,112,157 Position Detail
Category FY 2024 Budgeted FY 2025 Budgeted FY 2026 Budgeted FY 2027 Budgeted Vehicle Maintenance 2.00 3.00 3.00 3.00
Administration 2.00 3.00 3.00 3.00
Total Authorized
FTEs

2.00 3.00 3.00 3.00
Position Summary
Vehicle Maintenance
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 140 Successor Agency
The Successor Agency Fund is a private-purpose trust fund used to account for the activities related to the Successor Agency to the Avalon Community Improvement Agency (ACIA). The revenues are received from the Redevelopment Property Tax Trust Fund (RPTTF) to fund recognized obligations of the ACIA, as well as certain administrative costs.

Summary
Revenues vs Expenditures Summary
Comprehensive Fund Summary
Revenue Actual Revenue Budgeted Expenditures Actual
Expenditures Budgeted
2024 2025 2026 2027
0 $500K
$1,000K
$1,500K
$2,000K
$2,500K
Comprehensive Fund Summary
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Beginning Fund Balance - - - -
Revenues
Other Tax $2,259,000 $2,259,000 $1,945,905 $1,837,108
Other Revenues - - - -
Investment Income $10,000 $10,000 $10,000 -
Total Revenues $2,269,000 $2,269,000 $1,955,905 $1,837,108 Expenditures
Contract Services $2,259,000 $2,259,000 $1,949,895 $1,827,108 Maintenance & Operations $10,000 $10,000 $6,010 $10,000 Capital Outlay - - - -
Successor Agency
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 141 Revenues by Revenue Source
Historical Revenue by Revenue Source
Investment Income Other Tax
FY27 Revenues by Revenue Source
Other Tax $1,837,108 100.0%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Other Tax $2,259,000 $2,259,000 $1,945,905 $1,837,108

RPTTF LAC
Distribution -
EO/Admin
$2,259,000 $2,259,000 $1,945,905 $1,837,108
Investment Income $10,000 $10,000 $10,000 -
Interest Income $10,000 $10,000 $10,000 -
Total Revenues $2,269,000 $2,269,000 $1,955,905 $1,837,108 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Total Expenditures $2,269,000 $2,269,000 $1,955,905 $1,837,108 Total Revenues Less
Expenditures
- - - -
Ending Fund Balance - - - -
$2M
$2M $2M $2M
FY2024 FY2025 FY2026 FY2027
0 $1M
$2M
$3M

1.84M
Revenues by Revenue Source
Successor Agency
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 142 Expenditures by Object Category
Historical Expenditures by Object Category
Maintenance & Operations Contract Services
FY27 Expenditures by Object Category
Contract Services $1,827,108 99.5%
Maintenance & Operations $10,000 0.5%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Contract Services $2,259,000 $2,259,000 $1,949,895 $1,827,108 RDA Admin Cost
Allowance
$150,000 $150,000 $150,000 $50,000
Retirement Of
Principal
$1,209,000 $1,209,000 $1,209,000 $1,245,000
Interest Expense $900,000 $900,000 $590,895 $532,108
Maintenance &
Operations
$10,000 $10,000 $6,010 $10,000
Miscellaneous
Expense
$10,000 $10,000 $6,010 $10,000
Total Expenditures $2,269,000 $2,269,000 $1,955,905 $1,837,108 $1M
$1M
$2M $2M
FY2024 FY2025 FY2026 FY2027
0 $1M
$2M
$3M

1.84M
Expenditures by Object Category
Successor Agency
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 143 Hospital Fund
The City collects two different tax measures on behalf of Catalina Island Health (CIH).

Avalon's Measure C is a half-cent add-on sales tax which passed by the voters in Avalon in April 2000 and generates approximately $800 thousand annually to fund hospital and clinic operations. The City receives these funds on a monthly basis from the state and remits the amounts received directly to the hospital.

Avalon's Measure H is a special tax on all individuals arriving in Avalon, via cross-channel carriers, cruise ships, aircraft, or private boat, to finance the construction of a new hospital facility. The revenues generated by this tax are deposited into a separate account and the City reimburses CIH for eligible expenditures incurred. As of April 30, 2026, the City has reimbursed CIH for $3.6 million in expenditures related to design, permitting, and engineering.

The fund balance is reported as a restricted balance within the General Fund in audited financial statements.

Summary
Revenues vs Expenditures Summary
Comprehensive Fund Summary
Revenue Actual Revenue Surplus Revenue Budgeted
Expenditures Actual Expenditures Budgeted
2024 2025 2026 2027
0 $1M
$2M
$3M
$4M
Comprehensive Fund Summary
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Beginning Fund Balance $1,908,658 $1,908,658 $1,908,658 $2,705,158 Revenues
Sales Tax $700,000 $700,000 $750,000 $800,000
Hospital Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 144 Revenue Detail
Historical Comparison
Interest Income Sales Tax - Hospital Measure H Tax
FY27 Revenue Detail
Measure H Tax $2,200,000 73.3%
Sales Tax - Hospital $800,000 26.7%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Intergovernmental $2,000,000 $2,000,000 $2,100,000 $2,200,000 Investment Income - - $1,500 -
Total Revenues $2,700,000 $2,700,000 $2,851,500 $3,000,000 Expenditures
Contract Services $2,702,000 $2,702,000 $2,055,000 $2,800,000 Maintenance & Operations $1,000 $1,000 - -
Total Expenditures $2,703,000 $2,703,000 $2,055,000 $2,800,000 Total Revenues Less
Expenditures
-$3,000 -$3,000 $796,500 $200,000
Ending Fund Balance $1,905,658 $1,905,658 $2,705,158 $2,905,158 $2M
$3M
$3M
$3M
FY2024 FY2025 FY2026 FY2027
0 $1M
$2M
$3M
$4M
3M
Hospital Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 145 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Measure H Tax $2,000,000 $2,000,000 $2,100,000 $2,200,000 Sales Tax - Hospital $700,000 $700,000 $750,000 $800,000 Interest Income - - $1,500 -
Total Revenues $2,700,000 $2,700,000 $2,851,500 $3,000,000 Expenditure Detail
Historical Comparison
Bank and CC Fees City Attorney Retainer Professional Services Pass Thru Tax Measure H Pass Thru
FY27 Expenditure Detail
Measure H Pass Thru $2,000,000 71.4%
Pass Thru Tax $800,000 28.6%
Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
Pass Thru Tax $700,000 $700,000 $700,000 $800,000
Measure H Pass Thru $2,000,000 $2,000,000 $1,350,000 $2,000,000 Professional Services - - $5,000 -
Revenue Detail
$1M
$2M
$2M
$3M
FY2024 FY2025 FY2026 FY2027
0 $1M
$2M
$3M

2.8M
Expenditure Detail
Hospital Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 146 Category
FY 2026 Adopted
Budget
FY 2026 Amended
Budget
FY 2026 Estimated
Actuals
FY 2027 Budgeted
City Attorney Retainer $2,000 $2,000 - -
Bank and CC Fees $1,000 $1,000 - -
Total Expenditures $2,703,000 $2,703,000 $2,055,000 $2,800,000 Hospital Fund
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 147 Capital Improvement Plan
The Capital Improvement Plan (CIP) is a strategic roadmap that outlines the City's commitment to enhancing our community's infrastructure and assets. This document serves as a comprehensive guide to long-term investment strategies, highlighting goals, projects, funding strategies, and implementation timelines.

Capital Budgeting Process
The Capital Budget (the first year) and Improvement Plan (the following four years) are a forecast of the City's infrastructure needs and a plan for funding and implementing those capital projects. Unlike the City's operating budget, capital projects can be funded over multiple years and appropriations can be carried forward from year to year. Funds in the first year are appropriated by the City Council, while future years represent planned expenditures that have not yet been authorized.

Definitions and Criteria for Capital Projects
In general, capital projects are activities related to the acquisition, construction, and long-term investment in publicly owned capital assets. Long-term investment means funding for renovations or significant repairs but not routine maintenance. Capital assets include land, building and related improvements (e.g new roof on City Hall), improvements other than buildings (e.g. pier decking replacement on Green Pleasure Pier), machinery and equipment, vehicles, and infrastructure (e.g. street paving). Capital assets can also include information technology. The City defines capital assets as assets with an initial cost of more than $5,000 and an expected useful life of at least 5 years.

Capital Improvement Plan
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 148 One Year Plan
FY27 Total Funding Requested by Department
Harbor Admin $14,220,000 60.32%
CIP $3,515,000 14.91%
Public Works $3,267,000 13.86%
Administration $1,290,750 5.48%
Recreation $925,000 3.92%
Fire $355,000 1.51%
FY27 Capital Cost Breakdown
Capital Costs $23,572,750 100.00%
Operational Costs $0 0.00%
FY27 Cost Savings & Revenue Breakdown
Revenue $0
Cost Savings $0

23.6M
2027 $24M
0 $5M $10M $15M $20M $25M
2027
One Year Plan
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 149 Harbor Admin
Project No. / Category Historical Actuals Estimated Actuals FY2027 Future Budgeted Total 180005 Cabrillo Mole
Rehabilitation -
Phase II
$725,300 $1,300,000 $7,500,000 $0 $9,525,300
205004 South Beach
Seawall
Rehabilitation
$0 $0 $2,480,000 $0 $2,480,000
277001 Green Pier
Decking
$0 $0 $1,200,000 $0 $1,200,000
207002 Clubdock Dinghy
Dock Pier
Replacement
$210,575 $60,000 $500,000 $0 $770,575
277002 Green Pier
Decking Electrical
Upgrades
$0 $0 $600,000 $0 $600,000
267001 End Fload
Rehabilitation
$0 $0 $500,000 $0 $500,000
267002 Pebbly Beach
Road / Crescent
Avenue "Elbow"
Improvements
$0 $50,000 $300,000 $0 $350,000
247001 Vehicle
Replacement
$0 $0 $275,000 $0 $275,000
277003 Fuel Dock Roofing
Improvements
$0 $0 $250,000 $0 $250,000
207009 Float
Rehabilitation
$0 $0 $200,000 $0 $200,000
277001 CasinoWay
Showers
$0 $0 $125,000 $0 $125,000
247002 Crescent Avenue
(Front Street)
Electrical
Improvements
$0 $0 $100,000 $0 $100,000
207012 CasinoWay
Improvements
$0 $0 $50,000 $0 $50,000
247003 Float Construction
(Float 6)
$0 $0 $30,000 $0 $30,000
207016 Harbor Security
Cameras
$11,534 $7,951 $10,000 $0 $29,485
207014 Harbor Master
Building
$0 $0 $25,000 $0 $25,000
207003 Float Ramps $0 $0 $25,000 $0 $25,000
207005 Mole Hoist $0 $0 $20,000 $0 $20,000
207010 Anchor Chains $0 $0 $20,000 $0 $20,000
207011 Dinghy Dock Float
Replacement
$0 $0 $10,000 $0 $10,000
Total Harbor Admin $947,409 $1,417,951 $14,220,000 $0 $16,585,360 CIP
Project No. / Category Historical Actuals Estimated Actuals FY2027 Future Budgeted Total 180003 Five Corners
Pedestrian
Improvement
Project
$3,083,409 $2,601,625 $750,000 $0 $6,435,034
One Year Plan
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 150 Project No. / Category Historical Actuals Estimated Actuals FY2027 Future Budgeted Total 180008 Pebbly Beach
Road Rip Rap
Revetment
$462,126 $0 $2,250,000 $0 $2,712,126
205014 Civic Center
Workforce
Housing
$253,518 $245,898 $100,000 $0 $599,416
205017 Maintenance Yard
Upgrade
$228,655 $100,747 $250,000 $0 $579,402
205006 Annual Traffic and
Transportation
Projects
$187,411 $57,330 $50,000 $0 $294,741
205019 Burma Trail
RetainingWall
$199,268 $40,712 $25,000 $0 $264,980
205010 Annual Storm
Drain
Improvements
$55,977 $83,035 $80,000 $0 $219,012
245001 City Hall Roofing
Complex
$22,210 $0 $10,000 $0 $32,210
Total CIP $4,492,574 $3,129,347 $3,515,000 $0 $11,136,921 Fire
Project No. / Category Historical Actuals Estimated Actuals FY2027 Future Budgeted Total 274510 Fire Rescue 11 $0 $650,000 $0 $1,300,000 $1,950,000 244501 Self-Contained
Breathing
Apparatus (SCBA)
$335,093 $0 $0 $500,000 $835,093
247504 Fire Rescue 4 $244,840 $0 $0 $500,000 $744,840
244503 Fire Station
Training Tower
$0 $0 $0 $500,000 $500,000
274501 Fire Engine 1 $130,000 $0 $0 $320,000 $450,000
274506 Fire Engine 7 $300,000 $0 $0 $0 $300,000
274507 Fire Utility 9 $65,000 $0 $0 $160,000 $225,000
274503 Fire Truck 3 $200,000 $0 $0 $0 $200,000
254501 Motorola APX
7000 Portable
Radios
$97,818 $100,000 $0 $0 $197,818
274508 Fire Command 1 $60,000 $0 $120,000 $0 $180,000
274502 Fire Engine 2 $130,000 $0 $0 $0 $130,000
244504 Fire Station
Improvements
$0 $0 $130,000 $0 $130,000
274509 Fire Rescue 10 $35,000 $0 $0 $70,000 $105,000
274511 Electric Stretcher $0 $0 $105,000 $0 $105,000
274505 Fire Rescue 6 $50,000 $0 $0 $0 $50,000
Total Fire $1,647,751 $750,000 $355,000 $3,350,000 $6,102,751 Public Works
Project No. / Category Historical Actuals Estimated Actuals FY2027 Future Budgeted Total 180041 Citywide Street
Paving
Rehabilitation
Project
$0 $10,000 $1,000,000 $0 $1,010,000
One Year Plan
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 151 Project No. / Category Historical Actuals Estimated Actuals FY2027 Future Budgeted Total 275003 Collection and
Distribution
System Projects
$0 $0 $650,000 $0 $650,000
275004 WWTP Treatment
Plant Projects
$0 $0 $550,000 $0 $550,000
275002 Vac Truck
Refurbishment
$0 $0 $250,000 $0 $250,000
180061 City Hall Remodel $132,521 $0 $50,000 $0 $182,521 205003 Cemetery
Improvements
$0 $0 $100,000 $0 $100,000
275007 Vehicle Fleet NEW $0 $0 $100,000 $0 $100,000
205018 BonitaWay Stairs $48,521 $720 $50,000 $0 $99,241 205007 Building Facilities
- Annual
Improvements
$0 $39,819 $50,000 $0 $89,819
277005 Step Beach
Railing and Stair
Renovation
$0 $0 $75,000 $0 $75,000
275006 Vehicle Fleet S-28 $0 $0 $75,000 $0 $75,000
275008 Vehicle Fleet H-2 $0 $0 $71,500 $0 $71,500
275002 Vehicle Fleet S-5 $0 $0 $71,500 $0 $71,500
255002 Guardrails $0 $0 $50,000 $0 $50,000
275004 Vehicle Fleet S-10 $0 $0 $33,000 $0 $33,000
275003 Vehicle Fleet S-9 $0 $0 $33,000 $0 $33,000
275001 Vehicle Fleet S-1 $0 $0 $33,000 $0 $33,000
275005 Vehicle Fleet S-23 $0 $0 $25,000 $0 $25,000
Total Public Works $181,042 $50,539 $3,267,000 $0 $3,498,581 Administration
Project No. / Category Historical Actuals Estimated Actuals FY2027 Future Budgeted Total 245003 Pebbly Beach
Landfill Expansion
Project
$335,000 $100,000 $600,000 $0 $1,035,000
205016 206 EastWhittley
Housing Complex
$507,810 $375,000 $100,000 $0 $982,810
272505 Grinder / Chipper
Replacement
$0 $0 $465,750 $0 $465,750
272501 Civic Center Lo
Mod Housing
Complex
$0 $0 $100,000 $0 $100,000
203501 IT Improvements $0 $0 $25,000 $0 $25,000
Total Administration $842,810 $475,000 $1,290,750 $0 $2,608,560 Recreation
Project No. / Category Historical Actuals Estimated Actuals FY2027 Future Budgeted Total 276507 Park Landscaping
Improvements
$0 $0 $250,000 $0 $250,000
180002 Joe Machado
Field - Turf
$0 $0 $200,000 $0 $200,000
276502 JMF Exercise
Equipment
$0 $0 $100,000 $0 $100,000
One Year Plan
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 152 Project No. / Category Historical Actuals Estimated Actuals FY2027 Future Budgeted Total 206501 Avalon City Park -
Playground
Equipment
$0 $0 $100,000 $0 $100,000
276502 Joe Machado
Field - Roofing
$0 $0 $75,000 $0 $75,000
276501 Knabe and
Veteran's Park
Revitalization
$0 $0 $65,000 $0 $65,000
276504 Avalon Kids Park -
Gazebo
$0 $0 $50,000 $0 $50,000
276505 Avalon Kids Park -
Restrooms
$0 $0 $45,000 $0 $45,000
256504 Palapa Beach $0 $0 $0 $30,000 $30,000
276506 Community Tech
Center
$0 $0 $20,000 $0 $20,000
276503 Joe Machado
Field - Restrooms
$0 $0 $20,000 $0 $20,000
Total Recreation $0 $0 $925,000 $30,000 $955,000
Grand Total
Historical Actuals Estimated Actuals FY2027 Future Budgeted Total Grand Total $8,111,586 $5,822,837 $23,572,750 $3,380,000 $40,887,173 One Year Plan
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 153 Capital Improvement Multi-Year Plan
FY27 - FY31 Total Funding Requested by Department (including Historical Actuals, Current Year Estimates, Future Budgeted)
Funding by Department Totals (all years)
Harbor Admin $34,455,360 41.05%
CIP $22,266,921 26.53%
Fire $10,604,751 12.63%
Public Works $8,884,581 10.58%
Administration $6,190,099 7.37%
Recreation $1,540,000 1.83%
FY27 - FY31 Capital Cost Breakdown (including Historical Actuals, Current Year Estimates, Future Budgeted)
Capital Cost Totals (all years)
Capital Costs $83,941,712 100.00%
Operational Costs $0 0.00%
$8M
$6M
$24M
$31M
$6M
$2M
$4M $3M
Historical
Actuals
Current Year
Estimates
2027 2028 2029 2030 2031 Future
Budgeted
0 $10M
$20M
$30M
$40M
$8M
$6M
$24M
$31M
$6M
$2M
$4M
$3M
Historical Actuals
Current Year Estimates
2027
2028
2029
2030
2031
Future Budgeted
0 $5M $10M $15M $20M $25M $30M $35M
Harbor Admin
Project No. /
Category
Historical
Actuals
Estimated
Actuals
FY2027 FY2028 FY2029 FY2030 FY2031
Future
Budgeted
18000
5 Cabrillo Mole
Rehabilitation -
Phase II
$725,300 $1,300,000 $7,500,000 $15,000,000 $0 $0 $0 $0
20500
4 South Beach
Seawall
$0 $0 $2,480,000 $0 $0 $0 $0 $0
Multi-Year Plan
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 154 Project No. /
Category
Historical
Actuals
Estimated
Actuals
FY2027 FY2028 FY2029 FY2030 FY2031
Future
Budgeted
Rehabilitation
24700
1 Vehicle
Replacement
$0 $0 $275,000 $275,000 $275,000 $300,000 $300,000 $0
27700
1 Green Pier
Decking
$0 $0 $1,200,000 $0 $0 $0 $0 $0
20700
2 Clubdock
Dinghy Dock
Pier
Replacement
$210,575 $60,000 $500,000 $0 $0 $0 $0 $0
20700
9 Float
Rehabilitation
$0 $0 $200,000 $100,000 $100,000 $100,000 $200,000 $0
27700
2 Green Pier
Decking
Electrical
Upgrades
$0 $0 $600,000 $0 $0 $0 $0 $0
26700
1 End Fload
Rehabilitation
$0 $0 $500,000 $0 $0 $0 $0 $0
24700
3 Float
Construction
(Float 6)
$0 $0 $30,000 $380,000 $0 $0 $0 $0
26700
2 Pebbly Beach
Road /
Crescent
Avenue
"Elbow"
Improvements
$0 $50,000 $300,000 $0 $0 $0 $0 $0
24700
2 Crescent
Avenue (Front
Street)
Electrical
Improvements
$0 $0 $100,000 $150,000 $0 $0 $0 $0
20701
2 CasinoWay
Improvements
$0 $0 $50,000 $50,000 $50,000 $50,000 $50,000 $0
27700
3 Fuel Dock
Roofing
Improvements
$0 $0 $250,000 $0 $0 $0 $0 $0
20700
3 Float Ramps $0 $0 $25,000 $25,000 $25,000 $25,000 $25,000 $0 27700
1 CasinoWay
Showers
$0 $0 $125,000 $0 $0 $0 $0 $0
20700
5 Mole Hoist $0 $0 $20,000 $20,000 $20,000 $20,000 $20,000 $0 24700
6 Recreation
Barge
$0 $0 $0 $100,000 $0 $0 $0 $0
20701
0 Anchor Chains $0 $0 $20,000 $20,000 $20,000 $20,000 $20,000 $0 20701
6 Harbor
Security
Cameras
$11,534 $7,951 $10,000 $10,000 $10,000 $10,000 $10,000 $0 20700
8 Green Pier
Hoist
$0 $0 $0 $0 $0 $50,000 $0 $0
207011 Dinghy Dock
Float
Replacement
$0 $0 $10,000 $10,000 $10,000 $10,000 $10,000 $0
20701
4 Harbor Master
Building
$0 $0 $25,000 $0 $0 $0 $0 $0
Total Harbor Admin $947,409 $1,417,951 $14,220,000 $16,140,000 $510,000 $585,000 $635,000 $0 Multi-Year Plan
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 155 Project No. / Category
(continued from above)
Total
180005 Cabrillo Mole Rehabilitation - Phase II $24,525,300 205004 South Beach Seawall Rehabilitation $2,480,000
247001 Vehicle Replacement $1,425,000
277001 Green Pier Decking $1,200,000
207002 Clubdock Dinghy Dock Pier Replacement $770,575
207009 Float Rehabilitation $700,000
277002 Green Pier Decking Electrical Upgrades $600,000
267001 End Fload Rehabilitation $500,000
247003 Float Construction (Float 6) $410,000
267002 Pebbly Beach Road / Crescent Avenue "Elbow"
Improvements
$350,000
247002 Crescent Avenue (Front Street) Electrical
Improvements
$250,000
207012 CasinoWay Improvements $250,000
277003 Fuel Dock Roofing Improvements $250,000
207003 Float Ramps $125,000
277001 CasinoWay Showers $125,000
207005 Mole Hoist $100,000
247006 Recreation Barge $100,000
207010 Anchor Chains $100,000
207016 Harbor Security Cameras $69,485
207008 Green Pier Hoist $50,000
207011 Dinghy Dock Float Replacement $50,000
207014 Harbor Master Building $25,000
Total Harbor Admin $34,455,360
CIP
Project No. /
Category
Historical
Actuals
Estimated
Actuals
FY2027 FY2028 FY2029 FY2030 FY2031
Future
Budgeted
20501
4 Civic Center
Workforce
Housing
$253,518 $245,898 $100,000 $10,500,000 $0 $0 $0 $0
18000
3 Five Corners
Pedestrian
Improvement
Project
$3,083,409 $2,601,625 $750,000 $0 $0 $0 $0 $0
18000
8 Pebbly Beach
Road Rip Rap
Revetment
$462,126 $0 $2,250,000 $0 $0 $0 $0 $0
205017 Maintenance
Yard Upgrade
$228,655 $100,747 $250,000 $0 $0 $0 $0 $0
20500
6 Annual Traffic
and
Transportation
Projects
$187,411 $57,330 $50,000 $50,000 $50,000 $50,000 $50,000 $0 24500
1 City Hall
Roofing
Complex
$22,210 $0 $10,000 $350,000 $0 $0 $0 $0
20501
0 Annual Storm
Drain
Improvements
$55,977 $83,035 $80,000 $20,000 $20,000 $20,000 $20,000 $0 Multi-Year Plan
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 156 Project No. /
Category
Historical
Actuals
Estimated
Actuals
FY2027 FY2028 FY2029 FY2030 FY2031
Future
Budgeted
205019 Burma Trail
RetainingWall
$199,268 $40,712 $25,000 $0 $0 $0 $0 $0
Total CIP $4,492,574 $3,129,347 $3,515,000 $10,920,000 $70,000 $70,000 $70,000 $0 Project No. / Category
(continued from above)
Total
205014 Civic CenterWorkforce Housing $11,099,416
180003 Five Corners Pedestrian Improvement Project $6,435,034 180008 Pebbly Beach Road Rip Rap Revetment $2,712,126
205017 Maintenance Yard Upgrade $579,402
205006 Annual Traffic and Transportation Projects $494,741 245001 City Hall Roofing Complex $382,210
205010 Annual Storm Drain Improvements $299,012
205019 Burma Trail RetainingWall $264,980
Total CIP $22,266,921
Fire
Project No. /
Category
Historical
Actuals
Estimated
Actuals
FY2027 FY2028 FY2029 FY2030 FY2031
Future
Budgeted
274510 Fire Rescue 11 $0 $650,000 $0 $0 $0 $0 $0 $1,300,000 27450
3 Fire Truck 3 $200,000 $0 $0 $0 $1,500,000 $0 $0 $0
27450
6 Fire Engine 7 $300,000 $0 $0 $0 $0 $0 $1,200,000 $0
27450
2 Fire Engine 2 $130,000 $0 $0 $1,000,000 $0 $0 $0 $0
24450
1 Self-Contained
Breathing
Apparatus
(SCBA)
$335,093 $0 $0 $0 $0 $0 $0 $500,000
24750
4 Fire Rescue 4 $244,840 $0 $0 $0 $0 $0 $0 $500,000
24450
2 Fire Classroom
EOC
$0 $0 $0 $60,000 $500,000 $0 $0 $0
24450
3 Fire Station
Training Tower
$0 $0 $0 $0 $0 $0 $50,000 $500,000
274501 Fire Engine 1 $130,000 $0 $0 $0 $0 $0 $0 $320,000 27450
5 Fire Rescue 6 $50,000 $0 $0 $192,000 $0 $0 $0 $0
27450
7 Fire Utility 9 $65,000 $0 $0 $0 $0 $0 $0 $160,000
25450
1 Motorola APX
7000 Portable
Radios
$97,818 $100,000 $0 $0 $0 $0 $0 $0
27450
8 Fire Command
1 $60,000 $0 $120,000 $0 $0 $0 $0 $0
24450
4 Fire Station
Improvements
$0 $0 $130,000 $0 $0 $0 $0 $0
27450
9 Fire Rescue 10 $35,000 $0 $0 $0 $0 $0 $0 $70,000
274511 Electric
Stretcher
$0 $0 $105,000 $0 $0 $0 $0 $0
Multi-Year Plan
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 157 Project No. /
Category
Historical
Actuals
Estimated
Actuals
FY2027 FY2028 FY2029 FY2030 FY2031
Future
Budgeted
Total Fire $1,647,751 $750,000 $355,000 $1,252,000 $2,000,000 $0 $1,250,000 $3,350,000 Project No. / Category
(continued from above)
Total
274510 Fire Rescue 11 $1,950,000
274503 Fire Truck 3 $1,700,000
274506 Fire Engine 7 $1,500,000
274502 Fire Engine 2 $1,130,000
244501 Self-Contained Breathing Apparatus (SCBA) $835,093 247504 Fire Rescue 4 $744,840
244502 Fire Classroom EOC $560,000
244503 Fire Station Training Tower $550,000
274501 Fire Engine 1 $450,000
274505 Fire Rescue 6 $242,000
274507 Fire Utility 9 $225,000
254501 Motorola APX 7000 Portable Radios $197,818
274508 Fire Command 1 $180,000
244504 Fire Station Improvements $130,000
274509 Fire Rescue 10 $105,000
274511 Electric Stretcher $105,000
Total Fire $10,604,751
Public Works
Project No. /
Category
Historical
Actuals
Estimated
Actuals
FY2027 FY2028 FY2029 FY2030 FY2031
Future
Budgeted
27500
4 WWTP
Treatment
Plant Projects
$0 $0 $550,000 $1,250,000 $750,000 $600,000 $650,000 $0 27500
3 Collection and
Distribution
System
Projects
$0 $0 $650,000 $231,000 $375,000 $295,000 $305,000 $0
18004
1 Citywide
Street Paving
Rehabilitation
Project
$0 $10,000 $1,000,000 $0 $0 $0 $0 $0
27700
5 Step Beach
Railing and
Stair
Renovation
$0 $0 $75,000 $50,000 $300,000 $0 $0 $0
18006
1 City Hall
Remodel
$132,521 $0 $50,000 $50,000 $50,000 $50,000 $50,000 $0
20500
7 Building
Facilities -
Annual
Improvements
$0 $39,819 $50,000 $50,000 $50,000 $50,000 $50,000 $0
27500
2 Vac Truck
Refurbishmen
t
$0 $0 $250,000 $0 $0 $0 $0 $0
20501
8 BonitaWay
Stairs
$48,521 $720 $50,000 $50,000 $50,000 $0 $0 $0
20500
3 Cemetery
Improvements
$0 $0 $100,000 $20,000 $20,000 $20,000 $20,000 $0
Multi-Year Plan
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 158 Project No. /
Category
Historical
Actuals
Estimated
Actuals
FY2027 FY2028 FY2029 FY2030 FY2031
Future
Budgeted
27500
7 Vehicle Fleet
NEW
$0 $0 $100,000 $0 $0 $0 $0 $0
27500
6 Vehicle Fleet
S-28
$0 $0 $75,000 $0 $0 $0 $0 $0
27500
8 Vehicle Fleet
H-2
$0 $0 $71,500 $0 $0 $0 $0 $0
27500
2 Vehicle Fleet
S-5
$0 $0 $71,500 $0 $0 $0 $0 $0
25500
2 Guardrails $0 $0 $50,000 $0 $0 $0 $0 $0
27500
4 Vehicle Fleet
S-10
$0 $0 $33,000 $0 $0 $0 $0 $0
27500
3 Vehicle Fleet
S-9
$0 $0 $33,000 $0 $0 $0 $0 $0
27500
1 Vehicle Fleet
S-1
$0 $0 $33,000 $0 $0 $0 $0 $0
27500
5 Vehicle Fleet
S-23
$0 $0 $25,000 $0 $0 $0 $0 $0
Total Public Works $181,042 $50,539 $3,267,000 $1,701,000 $1,595,000 $1,015,000 $1,075,000 $0 Project No. / Category
(continued from above)
Total
275004 WWTP Treatment Plant Projects $3,800,000
275003 Collection and Distribution System Projects $1,856,000 180041 Citywide Street Paving Rehabilitation Project $1,010,000 277005 Step Beach Railing and Stair Renovation $425,000 180061 City Hall Remodel $382,521
205007 Building Facilities - Annual Improvements $289,819 275002 Vac Truck Refurbishment $250,000
205018 BonitaWay Stairs $199,241
205003 Cemetery Improvements $180,000
275007 Vehicle Fleet NEW $100,000
275006 Vehicle Fleet S-28 $75,000
275008 Vehicle Fleet H-2 $71,500
275002 Vehicle Fleet S-5 $71,500
255002 Guardrails $50,000
275004 Vehicle Fleet S-10 $33,000
275003 Vehicle Fleet S-9 $33,000
275001 Vehicle Fleet S-1 $33,000
275005 Vehicle Fleet S-23 $25,000
Total Public Works $8,884,581
Administration
Project No. /
Category
Historical
Actuals
Estimated
Actuals
FY2027 FY2028 FY2029 FY2030 FY2031
Future
Budgeted
24500
3 Pebbly Beach
Landfill
Expansion
Project
$335,000 $100,000 $600,000 $1,135,000 $1,485,897 $0 $860,642 $0 Multi-Year Plan
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 159 Project No. /
Category
Historical
Actuals
Estimated
Actuals
FY2027 FY2028 FY2029 FY2030 FY2031
Future
Budgeted
205016 206 East
Whittley
Housing
Complex
$507,810 $375,000 $100,000 $0 $0 $0 $0 $0
27250
5 Grinder /
Chipper
Replacement
$0 $0 $465,750 $0 $0 $0 $0 $0
203501 IT
Improvements
$0 $0 $25,000 $25,000 $25,000 $25,000 $25,000 $0
272501 Civic Center Lo
Mod Housing
Complex
$0 $0 $100,000 $0 $0 $0 $0 $0
Total Administration $842,810 $475,000 $1,290,750 $1,160,000 $1,510,897 $25,000 $885,642 $0 Project No. / Category
(continued from above)
Total
245003 Pebbly Beach Landfill Expansion Project $4,516,539 205016 206 EastWhittley Housing Complex $982,810
272505 Grinder / Chipper Replacement $465,750
203501 IT Improvements $125,000
272501 Civic Center Lo Mod Housing Complex $100,000
Total Administration $6,190,099
Recreation
Project No. /
Category
Historical
Actuals
Estimated
Actuals
FY2027 FY2028 FY2029 FY2030 FY2031
Future
Budgeted
Total
18000
2 Joe Machado
Field - Turf
$0 $0 $200,000 $50,000 $50,000 $50,000 $50,000 $0 $400,000 27650
6 Avalon Kids
Park - Fit Park
Equipment
$0 $0 $0 $0 $280,000 $0 $0 $0 $280,000
27650
7 Park
Landscaping
Improvements
$0 $0 $250,000 $0 $0 $0 $0 $0 $250,000
27650
2 JMF Exercise
Equipment
$0 $0 $100,000 $0 $0 $0 $0 $0 $100,000
20650
1 Avalon City
Park -
Playground
Equipment
$0 $0 $100,000 $0 $0 $0 $0 $0 $100,000
27500
4 Joe Machado
Field - Shade
Structure
$0 $0 $0 $75,000 $0 $0 $0 $0 $75,000
27650
2 Joe Machado
Field - Roofing
$0 $0 $75,000 $0 $0 $0 $0 $0 $75,000
27650
1 Knabe and
Veteran's Park
Revitalization
$0 $0 $65,000 $0 $0 $0 $0 $0 $65,000
25650
4 Palapa Beach $0 $0 $0 $30,000 $0 $0 $0 $30,000 $60,000 27650
4 Avalon Kids
Park - Gazebo
$0 $0 $50,000 $0 $0 $0 $0 $0 $50,000
Multi-Year Plan
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 160 Project No. /
Category
Historical
Actuals
Estimated
Actuals
FY2027 FY2028 FY2029 FY2030 FY2031
Future
Budgeted
Total
27650
5 Avalon Kids
Park -
Restrooms
$0 $0 $45,000 $0 $0 $0 $0 $0 $45,000
27650
6 Community
Tech Center
$0 $0 $20,000 $0 $0 $0 $0 $0 $20,000
27650
3 Joe Machado
Field -
Restrooms
$0 $0 $20,000 $0 $0 $0 $0 $0 $20,000
Total Recreation $0 $0 $925,000 $155,000 $330,000 $50,000 $50,000 $30,000 $1,540,000 Grand Total
Historical
Actuals
Estimated
Actuals
FY2027 FY2028 FY2029 FY2030 FY2031
Grand Total $8,111,586 $5,822,837 $23,572,750 $31,328,000 $6,015,897 $1,745,000 $3,965,642 (continued from above) Future Budgeted Total
Grand Total $3,380,000 $83,941,712
Multi-Year Plan
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 161 Capital Improvement Plan - Project Types
FY27 - FY31 Capital Costs By Project Type (including Historical Actuals, Current Year Estimates, Future Budgeted)
Building and Facilities $51,345,718 61.17%
Vehicles and Wheeled
Equipment - Fleet
$10,343,840 12.32%
Roadways $8,289,775 9.88%
Water and Sewer $5,955,012 7.09%
Other Improvements $5,684,221 6.77%
Other Equipment $2,055,843 2.45%
Computers and Related
Equipment
$267,303 0.32%

83.9M
Building and Facilities
Project No. /
Category
Historical
Actuals
Estimated
Actuals
FY2027 FY2028 FY2029 FY2030 FY2031
18000
5 Cabrillo Mole
Rehabilitation -
Phase II
$725,300 $1,300,000 $7,500,000 $15,000,000 $0 $0 $0
205014 Civic Center
Workforce
Housing
$253,518 $245,898 $100,000 $10,500,000 $0 $0 $0
24500
3 Pebbly Beach
Landfill
Expansion
Project
$335,000 $100,000 $600,000 $1,135,000 $1,485,897 $0 $860,642 18000
8 Pebbly Beach
Road Rip Rap
Revetment
$462,126 $0 $2,250,000 $0 $0 $0 $0
277001 Green Pier
Decking
$0 $0 $1,200,000 $0 $0 $0 $0
205016 206 East
Whittley
Housing
Complex
$507,810 $375,000 $100,000 $0 $0 $0 $0
20700
2 Clubdock
Dinghy Dock
Pier
Replacement
$210,575 $60,000 $500,000 $0 $0 $0 $0
20700
9 Float
Rehabilitation
$0 $0 $200,000 $100,000 $100,000 $100,000 $200,000
Project Types
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 162 Project No. /
Category
Historical
Actuals
Estimated
Actuals
FY2027 FY2028 FY2029 FY2030 FY2031
205017 Maintenance
Yard Upgrade
$228,655 $100,747 $250,000 $0 $0 $0 $0
24450
2 Fire Classroom
EOC
$0 $0 $0 $60,000 $500,000 $0 $0
24450
3 Fire Station
Training Tower
$0 $0 $0 $0 $0 $0 $50,000
267001 End Fload
Rehabilitation
$0 $0 $500,000 $0 $0 $0 $0
18000
2 Joe Machado
Field - Turf
$0 $0 $200,000 $50,000 $50,000 $50,000 $50,000
180061 City Hall
Remodel
$132,521 $0 $50,000 $50,000 $50,000 $50,000 $50,000
245001 City Hall
Roofing
Complex
$22,210 $0 $10,000 $350,000 $0 $0 $0
20500
7 Building
Facilities -
Annual
Improvements
$0 $39,819 $50,000 $50,000 $50,000 $50,000 $50,000
27700
3 Fuel Dock
Roofing
Improvements
$0 $0 $250,000 $0 $0 $0 $0
20500
3 Cemetery
Improvements
$0 $0 $100,000 $20,000 $20,000 $20,000 $20,000
24450
4 Fire Station
Improvements
$0 $0 $130,000 $0 $0 $0 $0
277001 CasinoWay
Showers
$0 $0 $125,000 $0 $0 $0 $0
272501 Civic Center Lo
Mod Housing
Complex
$0 $0 $100,000 $0 $0 $0 $0
24700
6 Recreation
Barge
$0 $0 $0 $100,000 $0 $0 $0
27500
4 Joe Machado
Field - Shade
Structure
$0 $0 $0 $75,000 $0 $0 $0
27650
2 Joe Machado
Field - Roofing
$0 $0 $75,000 $0 $0 $0 $0
27650
4 Avalon Kids
Park - Gazebo
$0 $0 $50,000 $0 $0 $0 $0
27650
5 Avalon Kids
Park -
Restrooms
$0 $0 $45,000 $0 $0 $0 $0
207014 Harbor Master
Building
$0 $0 $25,000 $0 $0 $0 $0
27650
6 Community
Tech Center
$0 $0 $20,000 $0 $0 $0 $0
27650
3 Joe Machado
Field -
Restrooms
$0 $0 $20,000 $0 $0 $0 $0
Total Building and
Facilities
$2,877,715 $2,221,464 $14,450,000 $27,490,000 $2,255,897 $270,000 $1,280,642 Project No. / Category
(continued from above)
Future Budgeted Total
180005 Cabrillo Mole Rehabilitation - Phase II $0 $24,525,300 Project Types
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 163 Project No. / Category
(continued from above)
Future Budgeted Total
205014 Civic CenterWorkforce Housing $0 $11,099,416
245003 Pebbly Beach Landfill Expansion
Project
$0 $4,516,539
180008 Pebbly Beach Road Rip Rap
Revetment
$0 $2,712,126
277001 Green Pier Decking $0 $1,200,000
205016 206 EastWhittley Housing Complex $0 $982,810
207002 Clubdock Dinghy Dock Pier
Replacement
$0 $770,575
207009 Float Rehabilitation $0 $700,000
205017 Maintenance Yard Upgrade $0 $579,402
244502 Fire Classroom EOC $0 $560,000
244503 Fire Station Training Tower $500,000 $550,000
267001 End Fload Rehabilitation $0 $500,000
180002 Joe Machado Field - Turf $0 $400,000
180061 City Hall Remodel $0 $382,521
245001 City Hall Roofing Complex $0 $382,210
205007 Building Facilities - Annual
Improvements
$0 $289,819
277003 Fuel Dock Roofing Improvements $0 $250,000
205003 Cemetery Improvements $0 $180,000
244504 Fire Station Improvements $0 $130,000
277001 CasinoWay Showers $0 $125,000
272501 Civic Center Lo Mod Housing Complex $0 $100,000
247006 Recreation Barge $0 $100,000
275004 Joe Machado Field - Shade Structure $0 $75,000
276502 Joe Machado Field - Roofing $0 $75,000
276504 Avalon Kids Park - Gazebo $0 $50,000
276505 Avalon Kids Park - Restrooms $0 $45,000
207014 Harbor Master Building $0 $25,000
276506 Community Tech Center $0 $20,000
276503 Joe Machado Field - Restrooms $0 $20,000
Total Building and Facilities $500,000 $51,345,718
Vehicles and Wheeled Equipment - Fleet
Project No. /
Category
Historical
Actuals
Estimated
Actuals
FY2027 FY2028 FY2029 FY2030 FY2031
Future
Budgeted
27451
0 Fire Rescue 11 $0 $650,000 $0 $0 $0 $0 $0 $1,300,000
27450
3 Fire Truck 3 $200,000 $0 $0 $0 $1,500,000 $0 $0 $0
27450
6 Fire Engine 7 $300,000 $0 $0 $0 $0 $0 $1,200,000 $0
24700
1 Vehicle
Replacement
$0 $0 $275,000 $275,000 $275,000 $300,000 $300,000 $0
27450
2 Fire Engine 2 $130,000 $0 $0 $1,000,000 $0 $0 $0 $0
24750
4 Fire Rescue 4 $244,840 $0 $0 $0 $0 $0 $0 $500,000
27450
1 Fire Engine 1 $130,000 $0 $0 $0 $0 $0 $0 $320,000
Project Types
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 164 Project No. /
Category
Historical
Actuals
Estimated
Actuals
FY2027 FY2028 FY2029 FY2030 FY2031
Future
Budgeted
27500
2 Vac Truck
Refurbishmen
t
$0 $0 $250,000 $0 $0 $0 $0 $0
27450
5 Fire Rescue 6 $50,000 $0 $0 $192,000 $0 $0 $0 $0
27450
7 Fire Utility 9 $65,000 $0 $0 $0 $0 $0 $0 $160,000
27450
8 Fire
Command 1
$60,000 $0 $120,000 $0 $0 $0 $0 $0
27450
9 Fire Rescue 10 $35,000 $0 $0 $0 $0 $0 $0 $70,000
27500
7 Vehicle Fleet
NEW
$0 $0 $100,000 $0 $0 $0 $0 $0
27500
6 Vehicle Fleet
S-28
$0 $0 $75,000 $0 $0 $0 $0 $0
27500
8 Vehicle Fleet
H-2
$0 $0 $71,500 $0 $0 $0 $0 $0
27500
2 Vehicle Fleet
S-5
$0 $0 $71,500 $0 $0 $0 $0 $0
27500
4 Vehicle Fleet
S-10
$0 $0 $33,000 $0 $0 $0 $0 $0
27500
3 Vehicle Fleet
S-9
$0 $0 $33,000 $0 $0 $0 $0 $0
27500
1 Vehicle Fleet
S-1
$0 $0 $33,000 $0 $0 $0 $0 $0
27500
5 Vehicle Fleet
S-23
$0 $0 $25,000 $0 $0 $0 $0 $0
Total Vehicles and
Wheeled
Equipment - Fleet
$1,214,840 $650,000 $1,087,000 $1,467,000 $1,775,000 $300,000 $1,500,000 $2,350,000 Project No. / Category
(continued from above)
Total
274510 Fire Rescue 11 $1,950,000
274503 Fire Truck 3 $1,700,000
274506 Fire Engine 7 $1,500,000
247001 Vehicle Replacement $1,425,000
274502 Fire Engine 2 $1,130,000
247504 Fire Rescue 4 $744,840
274501 Fire Engine 1 $450,000
275002 Vac Truck Refurbishment $250,000
274505 Fire Rescue 6 $242,000
274507 Fire Utility 9 $225,000
274508 Fire Command 1 $180,000
274509 Fire Rescue 10 $105,000
275007 Vehicle Fleet NEW $100,000
275006 Vehicle Fleet S-28 $75,000
275008 Vehicle Fleet H-2 $71,500
275002 Vehicle Fleet S-5 $71,500
275004 Vehicle Fleet S-10 $33,000
275003 Vehicle Fleet S-9 $33,000
275001 Vehicle Fleet S-1 $33,000
275005 Vehicle Fleet S-23 $25,000
Total Vehicles and Wheeled Equipment - Fleet $10,343,840 Project Types
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 165 Roadways
Project No. / Category
Historical
Actuals
Estimated
Actuals
FY2027 FY2028 FY2029 FY2030 FY2031
Future
Budgeted
180003 Five Corners
Pedestrian
Improvement
Project
$3,083,409 $2,601,625 $750,000 $0 $0 $0 $0 $0
180041 Citywide Street
Paving
Rehabilitation
Project
$0 $10,000 $1,000,000 $0 $0 $0 $0 $0
20500
6 Annual Traffic
and
Transportation
Projects
$187,411 $57,330 $50,000 $50,000 $50,000 $50,000 $50,000 $0 26700
2 Pebbly Beach
Road / Crescent
Avenue "Elbow"
Improvements
$0 $50,000 $300,000 $0 $0 $0 $0 $0
Total Roadways $3,270,820 $2,718,955 $2,100,000 $50,000 $50,000 $50,000 $50,000 $0 Project No. / Category
(continued from above)
Total
180003 Five Corners Pedestrian Improvement Project $6,435,034 180041 Citywide Street Paving Rehabilitation Project $1,010,000 205006 Annual Traffic and Transportation Projects $494,741 267002 Pebbly Beach Road / Crescent Avenue "Elbow"
Improvements
$350,000
Total Roadways $8,289,775
Water and Sewer
Project No. /
Category
Historical
Actuals
Estimated
Actuals
FY2027 FY2028 FY2029 FY2030 FY2031
Future
Budgeted
27500
4 WWTP
Treatment
Plant Projects
$0 $0 $550,000 $1,250,000 $750,000 $600,000 $650,000 $0 27500
3 Collection and
Distribution
System
Projects
$0 $0 $650,000 $231,000 $375,000 $295,000 $305,000 $0
20501
0 Annual Storm
Drain
Improvements
$55,977 $83,035 $80,000 $20,000 $20,000 $20,000 $20,000 $0 Total Water and
Sewer
$55,977 $83,035 $1,280,000 $1,501,000 $1,145,000 $915,000 $975,000 $0 Project No. / Category
(continued from above)
Total
275004 WWTP Treatment Plant Projects $3,800,000
275003 Collection and Distribution System Projects $1,856,000 205010 Annual Storm Drain Improvements $299,012
Total Water and Sewer $5,955,012
Project Types
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 166 Other Improvements
Project No. /
Category
Historical
Actuals
Estimated
Actuals
FY2027 FY2028 FY2029 FY2030 FY2031
Future
Budgeted
Total
20500
4 South Beach
Seawall
Rehabilitation
$0 $0 $2,480,000 $0 $0 $0 $0 $0 $2,480,000
27700
2 Green Pier
Decking
Electrical
Upgrades
$0 $0 $600,000 $0 $0 $0 $0 $0 $600,000
27700
5 Step Beach
Railing and
Stair
Renovation
$0 $0 $75,000 $50,000 $300,000 $0 $0 $0 $425,000
24700
3 Float
Construction
(Float 6)
$0 $0 $30,000 $380,000 $0 $0 $0 $0 $410,000
27650
6 Avalon Kids
Park - Fit Park
Equipment
$0 $0 $0 $0 $280,000 $0 $0 $0 $280,000
20501
9 Burma Trail
RetainingWall
$199,268 $40,712 $25,000 $0 $0 $0 $0 $0 $264,980
27650
7 Park
Landscaping
Improvement
s
$0 $0 $250,000 $0 $0 $0 $0 $0 $250,000
24700
2 Crescent
Avenue (Front
Street)
Electrical
Improvement
s
$0 $0 $100,000 $150,000 $0 $0 $0 $0 $250,000
20701
2 CasinoWay
Improvement
s
$0 $0 $50,000 $50,000 $50,000 $50,000 $50,000 $0 $250,000 20501
8 BonitaWay
Stairs
$48,521 $720 $50,000 $50,000 $50,000 $0 $0 $0 $199,241
20650
1 Avalon City
Park -
Playground
Equipment
$0 $0 $100,000 $0 $0 $0 $0 $0 $100,000
27650
1 Knabe and
Veteran's Park
Revitalization
$0 $0 $65,000 $0 $0 $0 $0 $0 $65,000
25650
4 Palapa Beach $0 $0 $0 $30,000 $0 $0 $0 $30,000 $60,000 25500
2 Guardrails $0 $0 $50,000 $0 $0 $0 $0 $0 $50,000
Total Other
Improvements
$247,789 $41,432 $3,875,000 $710,000 $680,000 $50,000 $50,000 $30,000 $5,684,221 Other Equipment
Project No. /
Category
Historical
Actuals
Estimated
Actuals
FY2027 FY2028 FY2029 FY2030 FY2031
Future
Budgeted
Total
24450
1 Self-Contained
Breathing
Apparatus
(SCBA)
$335,093 $0 $0 $0 $0 $0 $0 $500,000 $835,093
Project Types
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 167 Project No. /
Category
Historical
Actuals
Estimated
Actuals
FY2027 FY2028 FY2029 FY2030 FY2031
Future
Budgeted
Total
27250
5 Grinder /
Chipper
Replacement
$0 $0 $465,750 $0 $0 $0 $0 $0 $465,750
20350
1 IT
Improvement
s
$0 $0 $25,000 $25,000 $25,000 $25,000 $25,000 $0 $125,000 20700
3 Float Ramps $0 $0 $25,000 $25,000 $25,000 $25,000 $25,000 $0 $125,000 274511 Electric
Stretcher
$0 $0 $105,000 $0 $0 $0 $0 $0 $105,000
27650
2 JMF Exercise
Equipment
$0 $0 $100,000 $0 $0 $0 $0 $0 $100,000
20700
5 Mole Hoist $0 $0 $20,000 $20,000 $20,000 $20,000 $20,000 $0 $100,000 20701
0 Anchor Chains $0 $0 $20,000 $20,000 $20,000 $20,000 $20,000 $0 $100,000 20700
8 Green Pier
Hoist
$0 $0 $0 $0 $0 $50,000 $0 $0 $50,000
207011 Dinghy Dock
Float
Replacement
$0 $0 $10,000 $10,000 $10,000 $10,000 $10,000 $0 $50,000 Total Other
Equipment
$335,093 $0 $770,750 $100,000 $100,000 $150,000 $100,000 $500,000 $2,055,843 Computers and Related Equipment
Project No. /
Category
Historical
Actuals
Estimated
Actuals
FY2027 FY2028 FY2029 FY2030 FY2031
Future
Budgeted
Total
254501 Motorola APX
7000 Portable
Radios
$97,818 $100,000 $0 $0 $0 $0 $0 $0 $197,818
207016 Harbor Security
Cameras
$11,534 $7,951 $10,000 $10,000 $10,000 $10,000 $10,000 $0 $69,485 Total Computers and
Related Equipment
$109,352 $107,951 $10,000 $10,000 $10,000 $10,000 $10,000 $0 $267,303 Grand Total
Historical
Actuals
Estimated
Actuals
FY2027 FY2028 FY2029 FY2030 FY2031
Grand Total $8,111,586 $5,822,837 $23,572,750 $31,328,000 $6,015,897 $1,745,000 $3,965,642 (continued from above) Future Budgeted Total
Grand Total $3,380,000 $83,941,712
Project Types
Fiscal Year 2026-2027 Proposed Operating and Capital Budget | Avalon Page 168 Capital Improvement Plan - Departments
FY27 - FY31 Capital Costs by Department (including Historical Actuals, Current Year Estimates, Future Budgeted)
Harbor Admin $34,455,360 41.05%
CIP $22,266,921 26.53%
Fire $10,604,751 12.63%
Public Works $8,884,581 10.58%
Administration $6,190,099 7.37%
Recreation $1,540,000 1.83%