Pacifica City Council
June 22, 2026

CITY OF PACIFICA ADMINISTRATIVE
POLICY
No.
39 INVESTMENT POLICY
DATE ISSUED:
02/89; 11/94; 12/96; 08/17,
10/18; 06/24; 06/26

I. PURPOSE
The purpose of this Investment Policy for the City of Pacifica (the City) is to provide guidance and direction for the prudent investment of City funds and to foster the creation of a systematic and controlled investment process. The ultimate goal is to maximize the efficiency of the City’s cash management system and to enhance the economic status of the City while protecting its pooled investment cash.

II. POLICY
It is the policy of the City of Pacifica to invest public funds in a manner which will provide maximum security, meet the daily cash flow demands of the City and provide reasonable investment return while conforming to all California laws and local statutes governing the investment of public funds. It is also the policy of the City that all funds not required for immediate budgeted expenditures be invested in compliance with this Investment Policy.

III. SCOPE
This Investment Policy applies to all short-term operating funds and investment activities under the direct authority of the City. These funds are described in the most current annual financial reportAnnual Comprehensive Financial Report (ACFR) and include: General Fund, Capital Projects Fund, Special Revenue Funds, Enterprise Funds, Internal Service Funds and Fiduciary Funds, and any new fund created by the City Council unless specifically exempted. This investment policy applies to all transactions involving the financial assets and related activities of the foregoing funds.

IV. PRUDENCE
The standard of prudence to be used for managing the City’s investment program is California Government Code Section 53600.3, the prudent investor standard which

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Packet Pg. 270 Attachment: Attachment 4 Exhibit A - Investment Policy (6241 : FY 2026-27 Budget Adoption)

states, “When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.”
The City Manager and other individuals assigned to manage the investment portfolio, acting in accordance with written procedures and this Investment Policy and exercising due diligence, shall be relieved of personal responsibility and liability for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.

V. OBJECTIVES
The City’s funds shall be invested in accordance with all applicable City policies and codes, state and local statutes and federal regulations, and in a manner designed to accomplish the following objectives, which are listed in priority order:

A. Safety: Safety of principal is the foremost objective of the investment program.

Investments of the City shall be undertaken in a manner that seeks to ensure that capital losses are avoided, whether from securities default, broker-dealer default, or erosion of market value. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to improve the quality, liquidity or yield of the portfolio in response to market conditions or the City's risk preferences. The City shall seek to preserve principal by mitigating the two types of risk: credit risk and market risk. Credit risk, defined as the risk of loss due to failure of the issuer of a security, shall be mitigated by investing in issuers that carry the direct or implied backing of the U.S. Government (including, but not limited to, the U.S. Treasury, U.S. Government Agencies, and federally insured banks). The portfolio will be diversified so that the failure of any one issuer does not unduly harm the City’s capital base and cash flow.

Market risk, (aka “interest rate risk”) defined as market value fluctuations due to overall changes in the general level of interest rates shall be mitigated by limiting the maximum maturity of any one security to five years, structuring the portfolio based on historic and current cash flow analysis eliminating the need to sell securities prior to maturity and avoiding the purchase of long-term securities for the sole purpose of short-term speculation. Moreover, it is the City’s full intent, at the time of purchase, to hold all investments until maturity to ensure the return of all invested principal dollars. Limited

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Packet Pg. 271 Attachment: Attachment 4 Exhibit A - Investment Policy (6241 : FY 2026-27 Budget Adoption)

exceptions will be granted for security swaps that would improve the portfolio’s yield and/or credit quality.

B. Liquidity: The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated.

C. Return on Investment: The City’s investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the City's investment risk constraints and the cash flow characteristics of the portfolio.

VI. DELEGATION OF AUTHORITY
Section 53636 of the Government Code of the State of California provides that money on deposit is deemed to be in the treasury of the City. The responsibility for conducting the City's investment program resides with the City Manager or her/his designee. Daily management responsibility of the investment program may be delegated to the Finance and Administrative Services Director, who shall establish procedures for the operation consistent with this investment policy.

VII. PUBLIC TRUST
All participants in the investment process shall act reasonably as custodians of the public trust. Investment officials shall recognize that the investment portfolio is subject to public scrutiny and evaluation. The overall program shall be designed and managed with a degree of professionalism that is worthy of the public trust. Nevertheless, in a diversified portfolio, it must be recognized that occasional measured losses are inevitable, and must be considered within the context of the overall portfolio investment return, provided that adequate diversification has been implemented.

Investments are to be made that will bear in mind the responsibility of city government to its citizens. Investments that encourage the betterment of the human condition will be sought. Alternative investments that enhance the quality of life will be given full consideration. Investments that serve to only enrich a few to the detriment of the people will be strictly avoided.

VIII. ETHICS AND CONFLICT OF INTEREST
All personnel responsible for authorizing the purchase of investments shall refrain from personal business activities that could conflict with proper execution of the investment program and/or which could impair their ability to make impartial investment decisions.

The City Manager and other key Finance personnel shall file a Statement of Economic Interests each year as required by California Government Code Section 87203 and

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Packet Pg. 272 Attachment: Attachment 4 Exhibit A - Investment Policy (6241 : FY 2026-27 Budget Adoption)

regulations of the Fair Political Practices Commission. Furthermore, Investment officials must refrain from undertaking personal investment transactions with the same individual(s) employed by the financial institution with whom business is conducted on behalf of the City.
[Any securities broker or dealer who has made a political contribution to any member of the City Council, or any candidate for those offices, in an amount that exceeds the limitations contained in Rule G-37 of the Municipal Securities Rulemaking Board (MSRB) within any consecutive 48-month period shall not engage in any securities transactions (purchase, sale and/or exchange) with the City.]
IX. QUALIFIED MONEY MANAGERS, FINANCIAL DEALERS AND INSTITUTIONS The City may contract with professional money managers to assist in the management of all or part of its investment portfolio in compliance with the guidelines outlined in this Investment Policy. If City staff directly invests in individual securities, then the City will maintain a list of financial institutions and primary dealers authorized to provide investment services. Professional money managers working with the City may maintain their own list. Primary dealers include those that regularly report to the Federal Reserve Bank and should qualify under Securities and Exchange Commission Rule 15c3-1 (uniform net capital rule).

All financial institutions, dealers and cash managers who desire to become qualified bidders for investment transactions must supply the City with the following: audited financial statements, proof of Financial Industry Regulatory Authority (FINRA) certification when applicable, trading resolution, proof of State of California registration when applicable, completed questionnaire and certification of having read the City of Pacifica's investment policy and depository contracts. A current audited financial statement is required to be on file for each financial institution and dealer. The City Manager may conduct an annual review of the financial condition and registrations of qualified dealers & institutions. Best practices include the following: 1) A determination that all approved broker/dealer firms, and individuals covering the public agency, are reputable and trustworthy; 2) the broker/dealer firms should have the ability to meet all their financial obligations in dealing with the Public Agency; 3) the firms, and individuals covering the agency, should be knowledgeable and experienced in Public Agency investing and the investment products involved; 4) no public deposit shall be made except in a qualified public depository as established by the established state laws.

The City shall send a copy of the current investment policy to all brokers/dealers approved to do business with the City. Confirmation of receipt of this policy shall be considered evidence that the dealer understands the City’s Investment Policy and intends to sell the City only appropriate investments authorized by this Investment Policy.

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Packet Pg. 273 Attachment: Attachment 4 Exhibit A - Investment Policy (6241 : FY 2026-27 Budget Adoption)

X. AUTHORIZED INVESTMENTS
All investments and deposits of City funds shall be made in accordance with California Government Code Sections 16429.1, 53600-53609 and 53630-53686. Within the context of code limitations, the following investments and their respective additional limitations are authorized:

Limitations identified in the following sections shall be adhered to and the percentage limits and credit criteria shall be measured against portfolio value on the date the investment is purchased. In the event of a credit downgrade below the minimum acceptable credit rating, the City shall require investment advisors, engaged in the investing of City funds, to notify City staff of the downgrade, and provide a plan of action to address the downgrade:

A. Local Agency Obligations – 1) Bonds issued by the local agency, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency. 2) Bonds, notes, warrants, or other evidence of indebtedness of a local agency within this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. “Local agency” means county, city, city and county, including a chartered city or county, school district, community college district, public district, county board of education, county superintendent of schools, or any public or municipal corporation.

B. United States Treasury bills, bonds and notes or those for which the full faith and credit of the United States are pledged for the payment of principal and interest. There is no limit on the percentage of U.S. Treasury obligations that may be held in the City's portfolio.

C. State Obligations – 1) Registered state warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state. 2) Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California, including bonds payable solely out of the revenues from a revenueproducing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.

D. Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments (or Agencies), including those issued by or fully

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Packet Pg. 274 Attachment: Attachment 4 Exhibit A - Investment Policy (6241 : FY 2026-27 Budget Adoption)

guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises with maturities not exceeding five years from the date of trade settlement.

E. Banker’s Acceptances with a maturity not exceeding 180 days from the date of trade settlement, drawn on or accepted by a FDIC insured commercial bank with combined capital and surplus of at least $250 million, rated at least A-1 or the equivalent by a nationally recognized statistical rating organization (NRSRO) at the time of purchase and whose senior long-term debt is rated at least A or the equivalent by a NRSRO at the time of purchase. No more than 5% of the City’s total portfolio shall be invested in banker’s acceptances of any one issuer, and the aggregate investment in banker’s acceptances shall not exceed 25% of the City’s total portfolio.

F. Commercial Paper of “prime” quality of the highest ranking or the highest letter and numerical rating as provided for by a nationally recognized statistical rating organization. Purchases must be limited to corporations organized and operating within the United States, having assets in excess of $500 million and having an “A” or higher rating for the issuer’s debentures, other commercial paper (as provided by Moody’s or Standard and Poor’s rating services). No more than 5% of the City’s total portfolio may be invested in the commercial paper of any one issuerNo more than 10% of the City’s total investment assets may be invested in the commercial paper and medium-term notes of any one issuer, and the aggregate investment in commercial paper shall not exceed 25% of the City’s total portfolio. The maximum maturity of commercial paper cannot exceed 270397 days from the date of trade settlement.

G. Shares of beneficial interest issued by diversified management companies, that are money market funds or money market mutual funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1, et seq.). To be eligible for investment pursuant to this subdivision these companies shall either: (1) attain the highest ranking or the highest letter and numerical rating provided by not less than two of the three largest nationally recognized rating services or (2) retain an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of $500 million. No more than 20% of the City’s portfolio shall be invested in money market funds, and no more than 10% of the City’s funds may be invested in shares of any one mutual fund (this 10% limitation does not apply to money market mutual funds), consistent with California Government Code Section 53601(l). Only funds holding U.S. Treasury or Government agency obligations can be used.

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Packet Pg. 275 Attachment: Attachment 4 Exhibit A - Investment Policy (6241 : FY 2026-27 Budget Adoption)

H. State of California Local Agency Investment Fund. State of California’s Local Agency Investment Fund (LAIF), pursuant to California Government Code Section 16429.1.

There is no limit on the percentage of LAIF that may be held in the City's portfolio.

LAIF investments are subject to statutory limits. The LAIF portfolio should be reviewed periodically.

I. San Mateo County Investment Pool The San Mateo County Investment Pool may be used up to the maximum permitted by California State Law. A review of the pool/fund is required when part of the list of authorized investments, with the knowledge that the pool/fund may include some investments allowed by statute but not explicitly identified in this investment policy.

I.J. Shares of Beneficial Interest issued by a Joint Powers Authority, including the California Asset Management Program (CAMP) and CalTrust. The City can invest in this category, provided the City is a member of the Joint Powers Authority and therefore a voting member. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria: The adviser is registered or exempt from registration with the Securities and Exchange Commission. The adviser has not less than five years of experience investing in the securities and obligations authorized in CA Code (subsection ‘a’ to ‘r’, inclusive). The adviser has assets under management in excess of five hundred million dollars ($500,000,000).

J.K. Medium Term Notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States with a final maturity not exceeding five years from the date of trade settlement. These notes must have a rating of at least “A” or the equivalent by a NRSRO. No more than 5% of the City’s total portfolio shall be invested in medium term notes of any one issuerNo more than 10% of the City’s total investment assets may be invested in the commercial paper and medium-term notes of any one issuer, and the aggregate investment in medium term notes shall not exceed 25%30% of the City’s total portfolio.

K.L. Non-Negotiable Certificates of DepositTime Deposits or Placement Service Deposits (Gov. Code §53601.8) - The City may invest a portion of its surplus funds in deposits at a commercial bank, savings bank, savings and loan association, or credit union that uses a private sector entity that assists in the placement of deposits, in accordance with Government Code 53601.8. Deposits placed through a privatesector placement service shall not exceed fifty percent (50%) of the agency’s total investment portfolio at the time of purchase, as permitted under Government Code § 53601.8. Principal and accrued interest shall be fully insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), or collateralized in accordance with state law. Negotiable certificates of deposit

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Packet Pg. 276 Attachment: Attachment 4 Exhibit A - Investment Policy (6241 : FY 2026-27 Budget Adoption)

authorized under Government Code § 53601(i) are excluded from this limitation. This authority remains in effect through January 1, 2031, unless extended by further legislative action.

M. Negotiable Certificates of Deposit issued by nationally or state-chartered banks (FDIC insured institutions) or state or federal savings institutions. Purchases of negotiable certificates of deposit may not exceed 30% of total portfolio. Principal and accrued interest on these investments must not exceed the $250,000 FDIC insurance limit. A maturity limitation of five years is applicable.

L.N. Repurchase Agreements - “Repurchase agreement” means a purchase of securities by the local agency pursuant to an agreement by which the counterparty seller will repurchase the securities on or before a specified date and for a specified amount and the counterparty will deliver the underlying securities to the local agency by book entry, physical delivery, or by third-party custodial agreement. The transfer of underlying securities to the counterparty bank’s customer book-entry account may be used for book-entry delivery. Investments in repurchase agreements may be made, on authorized investments, when the term of the agreement does not exceed 180 days.

XI. REVIEW OF INVESTMENT PORTFOLIO
The securities held by the City of Pacifica must be in compliance with the Authorized Investments section of this Investment Policy at the time of purchase. The City Manager should review the portfolio (at least annually) to identify those securities that do not comply.

The City Manager should establish procedures to report any major and critical incidences of noncompliance identified through the review of the portfolio.

XII. INVESTMENT POOLS / MONEY MARKET FUNDS
A thorough investigation of the investment pool/money market fund is required prior to investing, and on a continual basis. Best efforts will be made to acquire the following information:
• A description of eligible investment securities, and a written statement of investment policy and objectives.
• A description of interest calculations and how it is distributed, and how gains and losses are treated.
• A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.

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Packet Pg. 277 Attachment: Attachment 4 Exhibit A - Investment Policy (6241 : FY 2026-27 Budget Adoption)

• A description of who may invest in the program, how often, and what size deposit and withdrawal are allowed.
• A schedule for receiving statements and portfolio listings. • Are reserves, retained earnings, etc. utilized by the pool/fund? • A fee schedule, and when and how is it assessed.
• Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?
XI.XIII. PROHIBITED INVESTMENTS
At the time of purchase, all permitted investments shall conform in all respects with this Investment Policy and with California Government Code Sections 53601, 53601.1, 53601.2, 53601.6, and 53635, as may be amended from time to time. No investment prohibited by California Government Code shall be permitted herein.

Ineligible investments, those that are not described herein, including but not limited to, common stocks or long term (over five years in maturity) notes and bonds, are prohibited from use in this portfolio.

Types of securities or transactions not permitted include:

A. Borrowing for investment purposes (leverage)

B. Inverse floaters, leveraged floaters, equity-linked securities, event-linked securities, structured investment vehicles (SIV)
Exempt from this definition are simple FRNs whose periodic coupon adjustment is based on a short-term (one-year or less) rate index (such as Treasury bills, federal funds, prime rate or LIBOR) and which have a reasonable expectation of maintaining a value at par at each interest rate adjustment through final maturity.

The following securities are also exempt from this definition: U.S. Treasury and Agency zero coupon bonds, U.S. Treasury and Agency strips, Resolution Funding Corporation (REFCORP) strips or other callable securities which otherwise meet quality, maturity and percent limitations assigned to their respective security category.

C. Derivatives (e.g., swaptions, spreads, straddles, caps, floors, collars, etc.) shall be prohibited.)

D. Trading of options and futures are prohibited.

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Packet Pg. 278 Attachment: Attachment 4 Exhibit A - Investment Policy (6241 : FY 2026-27 Budget Adoption)

The City discourages investments in tobacco, fossil fuel, or weapons manufacturing companies, consistent with the policies/practices of the State Treasurer’s Local Agency Investment Account/Pool Money Investment Account (LAIF/PMIA).

XIV. COLLATERALIZATION
Collateralization will be required on two types of investments: non-negotiable certificates of deposit and repurchase agreements. To anticipate market changes and provide a level of security for all funds, the collateralization level will be 110% of market value for nonnegotiable certificate of deposit and 102% for repurchase agreements of principal and accrued interest.

Collateral will always be held by an independent third party with whom the entity has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the entity and retained.

The City may waive the collateralization requirements for any portion of the deposit that is covered by Federal Deposit Insurance.

XII.XV. SAFEKEEPING AND CUSTODY
All security transactions entered into by the City shall be conducted on a delivery versus payment (DVP) basis as evidenced by safekeeping receipts in the City’s name and shall be delivered to the City or the City’s designated custodian upon receipt of payment by the City.

XIII.XVI. DIVERSIFICATION
The City’s investment portfolio shall be diversified to avoid incurring unreasonable risks inherent in over investing in specific instruments, individual financial institutions or maturities. See Attachment A for portfolio investment parameters. To promote diversification, the City will typically not invest more than 5% of the portfolio in the securities of any one issuer, regardless of security type, excluding U.S. Treasuries, federal agencies, and pooled investments such as LAIF, money market funds, or local government investment pools.

XVII. MAXIMUM MATURITIES
To the extent possible, the City of Pacifica will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than 5 years from the date of purchase.

Any investment longer than 5 years must be done with advance permission from City Council.

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Packet Pg. 279 Attachment: Attachment 4 Exhibit A - Investment Policy (6241 : FY 2026-27 Budget Adoption)

XIV.XVIII. INTERNAL CONTROLS
The Finance Department will establish a system of internal controls, which shall be documented in writing. The controls shall be designed to prevent loss of public funds arising from fraud, employee error, and misrepresentation by third parties, unanticipated changes in financial markets or imprudent actions by employees and officers of the City.

Controls deemed most important include: control of collusion, segregation of duties, separating transaction authority from accounting and record keeping, custodial safekeeping, clear delegation of authority, written confirmation of telephone transactions, documentation of transactions and strategies and code of ethical standards.

Separation of functions between the City Manager and Finance and Administrative Services Director is designed to provide an ongoing internal review to prevent the potential for converting assets or concealing transactions.

Investment decisions are made by the Finance and Administrative Services Director, executed by the Deputy Finance Director/Senior Accountant/Accountant and confirmed by the City Manager. All wire transfers initiated by the Finance and Administrative Services Director must be reconfirmed by the appropriate financial institution to the Deputy Finance Director/Senior Accountant/Accountant. Proper documentation obtained from confirmation and cash disbursement wire transfers is required for each investment transaction. Timely bank reconciliation is conducted to ensure proper handling of all transactions.

The investment portfolio and all related transactions are reviewed and balanced to appropriate general ledger accounts by the Finance and Administrative Services Director or designee on a monthly basis. An independent analysis by an external auditor shall be conducted annually to review and perform procedure testing on the City’s cash and investments that have a material impact on the financial statements. The City Manager shall review and assure compliance with investment process and procedures.

XV.XIX. PERFORMANCE STANDARDS
The investment portfolio shall be designed to attain a market rate of return throughout budgetary and economic cycles, taking into account prevailing market conditions, risk constraints for eligible securities, and cash flow requirements. The performance of the City’s investments shall be compared to the average yield on the U.S. Treasury security that most closely corresponds to the portfolio’s weighted average effective maturity.

When comparing the performance of the City’s portfolio, its rate of return will be computed net of all fees and expenses. The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. The City intends to spread its investments relatively evenly between 0 and 5 years and hold those investments to

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Packet Pg. 280 Attachment: Attachment 4 Exhibit A - Investment Policy (6241 : FY 2026-27 Budget Adoption)

maturity. Therefore, an appropriate performance benchmark will be a market-based index or blended benchmark that reflects the portfolio’s actual composition and weighted average maturity. This may include Treasury indices, government/credit indices, or other publicly available benchmarks consistent with the investment types authorized in the City’s policy. The selected benchmark shall be reviewed periodically and adjusted as needed to remain aligned with the City’s investment objectives and evolving portfolio structure.

XVI.XX. QUARTERLY REPORTING
The City Manager or designee shall present a quarterly report to the City Council no later than 3045 days after the receipt of the last bank statement for the quarterly periodthe end of the quarter. If there are no Council meetings within the 45-day period, the quarterly report shall be presented to the Council at the soonest possible meeting thereafter.

The report will provide a clear picture of the status of the current investment portfolio. The report shall include the following information on investments:
• Type of investment (e. g. U.S. Treasury security, commercial paper); • Issuer name;
• Date of maturity;
• Yield to maturity;
• Weighted Average Maturity (WAM) of the portfolio;
• Par and dollar amount invested in all securities, and investments and monies;
• A description of the funds, investments, and programs (including lending programs) managed by contracted parties (i.e. LAIF, investment pools, outside money managers, and securities lending agents); • Current market value as of the date of the report of all funds held by the local agency and under the management of any outside party that is not also a local agency or LAIF and the source of the valuation; • A statement of compliance with the investment policy or an explanation • for non-compliance; and
• A statement of the local agency’s ability to meet its pool’s expenditure requirements for the next six months, as well as an explanation of why sufficient money will not be available if that is the case.

XVII.XXI. REVIEW, ADOPTION & AMENDMENTS
The City’s Investment Policy shall be adopted by resolution of the City Council. This Investment Policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity and yield, and its compliance with current law. Any amendments to the Investment Policy must be approved by the City Council.

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Packet Pg. 281 Attachment: Attachment 4 Exhibit A - Investment Policy (6241 : FY 2026-27 Budget Adoption)

The Finance and Administrative Services Director shall establish written investment policy procedures for the operation of the investment program consistent with this policy. The procedures should include reference to: safekeeping, master repurchase agreements, wire transfer agreements, banking service contracts and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the City of Pacifica.

INVESTMENT POLICY GLOSSARY
Accrued Interest: Interest earned but not yet received.

Active Deposits: Funds that are immediately required for disbursement.

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Packet Pg. 282 Attachment: Attachment 4 Exhibit A - Investment Policy (6241 : FY 2026-27 Budget Adoption)

Amortization: An accounting practice of gradually decreasing (increasing) an asset's book value by spreading its depreciation (accretion) over a period of time.

Annual Comprehensive Financial Report (ACFR): The official annual financial report for the City. It includes five combined statements and basic financial statements for each individual fund and account group prepared in conformity with Generally Accepted Accounting Principles (GAAP).

Asked Price: The price a broker dealer offers to sell securities. Basis Point: One basis point is one hundredth of one percent (.01). Bid Price: The price a broker / dealer offers to purchase securities.

Bankers Acceptances (BAs) – Bankers’ acceptances (BAs) are money market instruments that are created in the course of bank financing transactions, particularly international trade financings. In creating a BA, a bank accepts responsibility for future payment of a draft or letter of credit issued in the course of a financing transaction, and then sells this obligation at a discount in the money market to an investor. The investor is shielded from the possibility of default on the part of the ultimate borrower because of the bank’s acceptance or guarantee of the BA at maturity.

Bond: A financial obligation for which the issuer promises to pay the bondholder a specified stream of future cash flows, including periodic interest payments and a principal repayment.

Bond Swap: Selling one bond issue and buying another at the same time in order to create an advantage for the investor. Some benefits of swapping may include taxdeductible losses, increased yields, and an improved quality portfolio.

Book Entry Securities: Securities, such stocks held in “street name,” that are recorded in a customer’s account, but are not accompanied by a certificate. The trend is toward a certificate-free society to cut down on paperwork and to diminish investors’ concerns about the certificates themselves. All the large New York City banks, including those that handle the bulk of the transactions of the major government securities dealers, now clear most of their transactions with each other and with the Federal Reserve through the use of automated telecommunications and the “book-entry” custody system maintained by the Federal Reserve Bank of New York. These banks have deposited with the Federal Reserve Bank a major portion of their government and agency securities holdings, including securities held for the accounts of their customers or in a fiduciary capacity for the City. Virtually all transfers for the account of the banks, as well as for the government securities dealers who are their clients, are now effected solely by bookkeeping entries.

The system reduces the costs and risks of physical handling and speeds the completion of transactions.

Book Value: The value at which a debt security is shown on the holder's balance sheet.

Book value is acquisition cost less amortization of premium or accretion of discount.

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Packet Pg. 283 Attachment: Attachment 4 Exhibit A - Investment Policy (6241 : FY 2026-27 Budget Adoption)

Broker: In securities, the intermediary between a buyer and a seller of securities. The broker, who usually charges a commission, must be registered with the exchange in which he or she is trading, accounting for the name registered representative.

Bullet Bond: See “Non-callable Bond.”
Callable Bond: A debit obligation where the bond issuer (i.e. borrower) has the option to call the bond or pay it off early (before the scheduled maturity date). For instance, a 5- year bond might be “callable quarterly”—meaning that, although the bond has a scheduled end date 5 years from now, it could end in 3 months (and every 3 months after that, until the scheduled maturity date).

Certificate of Deposit: A deposit insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC) at a set rate for a specified period of time.

Collateral: Securities, evidence of deposit or pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposit of public moneys.

Commercial Paper – Commercial paper (CP) is an unsecured, short-term (under 270 daysup to 397 days) promise to repay a fixed amount on a certain future date.

Corporations, banks and other borrowers issue CP as a less expensive alternative to short-term loans.

Constant Maturity Treasury (CMT): An average yield of a specific Treasury maturity sector for a specific time frame. This is a market index for reference of past direction of interest rates for the given Treasury maturity range.

Coupon: The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value.

Credit Analysis: A critical review and appraisal of the economic and financial conditions or of the ability to meet debt obligations.

Current Yield: The interest paid on an investment expressed as a percentage of the current price of the security.

Custody: A banking service that provides safekeeping for the individual securities in a customer's investment portfolio under a written agreement that also calls for the bank to collect and pay out income, to buy, sell, receive and deliver securities when ordered to do so by the principal.

Delivery vs. Payment (DVP): Delivery of securities with a simultaneous exchange of money for the securities.

Discount: The difference between the cost of a security and its value at maturity when quoted at lower than face value.

Diversification: Dividing investment funds among a variety of securities offering independent returns and risk profiles.

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Packet Pg. 284 Attachment: Attachment 4 Exhibit A - Investment Policy (6241 : FY 2026-27 Budget Adoption)

Duration: The weighted average maturity of a bond's cash flow stream, where the present value of the cash flows serve as the weights; the future point in time at which on average, an investor has received exactly half of the original investment, in present value terms; a bond's zero-coupon equivalent; the fulcrum of a bond's present value cash flow time line.

Fannie Mae: Trade name for the Federal National Mortgage Association (FNMA), a U.S. sponsored corporation.

Federal Deposit Insurance Corporation (FDIC): Insurance provided to customers of a subscribing bank that guarantees deposits to a set limit (currently $250,000) per account.

Federal Reserve System: The central bank of the U.S. that consists of a seven member Board of Governors, 12 regional banks and approximately 8,000 commercial banks that are members.

Fed Wire: A wire transmission service established by the Federal Reserve Bank to facilitate the transfer of funds through debits and credits of funds between participants within the Fed system.

Freddie Mac: Trade name for the Federal Home Loan Mortgage Corporation (FHLMC), a U.S. sponsored corporation.

Interest Rate: The annual yield earned on an investment, expressed as a percentage.

Investment Agreements: An agreement with a financial institution to borrow public funds subject to certain negotiated terms and conditions concerning collateral, liquidity and interest rates.

Liquidity: Refers to the ability to rapidly convert an investment into cash.

Local Agency Debt (Municipal and State Obligations) – Municipal notes, bonds, and other obligations are securities issued by state and local government agencies to finance capital and operating expenses.

Local Agency Investment Fund (LAIF) – LAIF was created in the California State Treasury by Gov. Code §16429. LAIF holds local government funds in trust in a state investment pool in order to provide safety, liquidity and the benefits of the investment pool yield for local government entities invested in LAIF. LAIF may hold a broader range of securities that would not be eligible under the City investment criteria. Since LAIF is subject to different statutory investment provisions, any such variances in the LAIF pool holdings are appropriate exceptions for City purposes.

Market Value: The price at which a security is trading and could presumably be purchased or sold.

Maturity: The date upon which the principal or stated value of an investment becomes due and payable.

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Packet Pg. 285 Attachment: Attachment 4 Exhibit A - Investment Policy (6241 : FY 2026-27 Budget Adoption)

Medium-term notes (MTNs) – Medium-term notes are debt obligations that are continuously offered in a range of maturities. Medium-term notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. The California Government Code restricts local agencies to the purchase of medium-term notes that meet, among other things, certain term and quality standards.

Money Market Mutual Funds – Money market mutual funds (MMMFs), called shares of beneficial interest issued by diversified management companies, are mutual funds that invest exclusively in short-term money market instruments. MMMFs seek the preservation of capital as a primary goal while maintaining a high degree of liquidity and providing current income representative of the market for short-term investments. Industry officials may refer to their funds as "money market funds".

Nationally Recognized Statistical Rating Organizations (NRSRO): A U.S. Securities & Exchange Commission registered agency that assesses the creditworthiness of an entity or specific security. NRSRO typically refers to Standard and Poor’s Ratings Services, Fitch Ratings, Inc. or Moody’s Investors Services.

New Issue: Term used when a security is originally "brought" to market.

Non-callable Bond: Also known as, “Bullet Bond.” A non-callable bond is a debt obligation where the bond issuer does not have the option to “call the bond” i.e.-end the bond before the scheduled maturity date.

Non-Negotiable Certificates of Deposit (NCDs) – A short-term, secured deposit in a financial institution that usually returns principal and interest to the lender at the end of the loan period. These CDs generally carry a penalty if redeemed prior to maturity.

Perfected Delivery: Refers to an investment where the actual security or collateral is held by an independent third party representing the purchasing entity.

Portfolio: Collection of securities held by an investor.

Primary Dealer: A group of government securities dealers that submit daily reports of market activity and security positions held to the Federal Reserve Bank of New York and are subject to its informal oversight.

Purchase Date: The date in which a security is purchased for settlement on that or a later date.

Rate of Return: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

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Packet Pg. 286 Attachment: Attachment 4 Exhibit A - Investment Policy (6241 : FY 2026-27 Budget Adoption)

Repurchase Agreements – A repurchase agreement (repo) is a short-term purchase of securities with a simultaneous agreement to sell the securities back on a specified date at an agreed upon price.

Reverse Repurchase Agreement (REVERSE REPO): A transaction where the seller (City) agrees to buy back from the buyer (bank) the securities at an agreed upon price after a stated period of time.

Risk: Degree of uncertainty of return on an asset. Safekeeping: See Custody.

Secondary Market: A market made for the purchase and sale of outstanding issues following the initial distribution.

Settlement Date: The date on which a trade is cleared by delivery of securities against funds.

Shares of Beneficial Interest issued by a Joint Powers Authority – shares of beneficial interest are issued by the joint powers authority, with each share representing an equal proportional interest in the underlying pool of securities owned by the joint powers authority.

Time Deposit: A deposit in an interest-paying account that requires the money to remain on account for a specific length of time. While withdrawals can generally be made from a passbook account at any time, other time deposits, such as certificates of deposit, are penalized for early withdrawal.

U.S. Government Sponsored Enterprise Debt (GSEs) (known as Agencies) – Federal agency and instrumentality obligations are marketable debt instruments issued by a government-sponsored enterprises (GSE), or a federally related institution, commonly known as federal or U.S. “agencies.” Such agencies include, Federal Farm Credit Bank System (FFCB), Federal Home Loan Bank (FHLB), Federal Home Loan Mortgage Corporation (FHLMC), Federal National Mortgage Association (FNMA), Resolution Funding Corporation (REFCORP).

U. S. Government Treasuries – United States Treasury Bills, Notes, and Bonds backed by the full faith and credit of the United States Government and considered to be the most secure securities.

Yield: The rate of annual income return on an investment, expressed as a percentage. It is obtained by dividing the current dollar income by the current market price of the security.

Yield Curve: The yield on bonds, notes or bills of the same type and credit risk at a specific date for maturities up to thirty years.

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Packet Pg. 287 Attachment: Attachment 4 Exhibit A - Investment Policy (6241 : FY 2026-27 Budget Adoption)

Yield to Maturity: The rate of income return on an investment, minus any premium or plus any discount, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond, expressed as a percentage.

ATTACHMENT A

SUMMARY OF PERMITTED INVESTMENTS

AUTHORIZED

INVESTMENTS
MAXIMUM %

HOLDINGS

PURCHASE

RESTRICTIONS

MAXIMUM

MATURITY

MINIMUM
CREDIT
RATINGS *
U.S. Treasury 100% n/a 5 years n/a

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Packet Pg. 288 Attachment: Attachment 4 Exhibit A - Investment Policy (6241 : FY 2026-27 Budget Adoption)

U.S. Agencies 100% n/a 5 years Aa / AA n/a
Commercial Papers 25% n/a 270 days
397 days
P-1 / A-1+
Negotiable CD’s
25% 30% n/a 1 year 5
years
P-2 / A-1 n/a
Placement Service Deposits
(Gov. Code 53601.8)
50% Private-sector
placement
service
5 years FDIC / NCUA
Banker’s Acceptances
25% Domestic banks
only
180 days A / A
Fully Collateralized Time
Deposits (FDIC insured)
100% n/a 5 years n/a
Fully Collateralized Money
Market Bank Account
100% n/a daily liquidity n/a
Money Market Funds 100% 20% NAV = $1.00 daily liquidity n/a Medium Term Notes 25% 30% n/a 5 years
A for 3 years or
less A / A
AA for over 3
years
Repurchase Agreements 25%
102% collateral;
daily marktomarket
180 days n/a
Local Agency Investment
Fund
100% n/a daily liquidity n/a
San Mateo County
Investment Pool
100% n/a daily liquidity n/a
California Asset
Management Program
(CAMP)
25% 100% n/a
daily liquidity
(CAMP) AAAm
CA Municipal Obligations 25%
Not issued by
City or related
City agency
2 years Aa / AA

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Packet Pg. 289 Attachment: Attachment 4 Exhibit A - Investment Policy (6241 : FY 2026-27 Budget Adoption) RESOLUTION NO.______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA REVISING ADMINISTRATIVE POLICY NO. 76, “PURCHASING POLICY”, AND RESCINDING ADMINISTRATIVE POLICIES NO. 13 AND NO. 54
WHEREAS, the City of Pacifica first adopted Administrative Policy No. 76 (Purchasing Policy) on November 27, 2014, with the latest revision on February 26, 2024; and WHEREAS, the City periodically reviews and updates its administrative policies to reflect current laws, procurement best practices, operational needs, and organizational responsibilities; and
WHEREAS, the proposed revisions to Administrative Policy No. 76 are intended to improve operational efficiency while maintaining appropriate financial oversight, accountability, transparency, and fairness in the City's procurement processes; and WHEREAS, Administrative Policy No. 13, Contract (Agreement) Renewal, adopted in 1978, established procedures for contract retention, review, and renewal that have since been modernized and incorporated into the City's current contract administration and records management practices; and
WHEREAS, Administrative Policy No. 54, Selection of Professional Consultants, adopted in 1994, established procedures for the procurement and selection of professional consulting services, many of which are now addressed within Administrative Policy No. 76; and WHEREAS, the proposed revisions to Administrative Policy No. 76 incorporate and update the relevant provisions of Administrative Policies No. 13 and No. 54, creating a more comprehensive and centralized procurement policy framework and reducing the need for multiple standalone administrative policies; and
WHEREAS, rescinding Administrative Policies No. 13 and No. 54 will improve administrative efficiency, eliminate duplication, and provide a single, consolidated source of guidance for purchasing, contracting, consultant selection, and contract administration activities;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pacifica that it hereby adopts the revisions to Administrative Policy No. 76, "Purchasing Policy," attached hereto as Attachment A, and rescinds Administrative Policy No. 13, Contract (Agreement) Renewal, and Administrative Policy No. 54, Selection of Professional Consultants.

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Packet Pg. 290 Attachment: Attachment 5 Resolution Approving the Purchasing Policy for FY 2026-27 (6241 : FY 2026-27 Budget Adoption) PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 22nd day of June 2026, by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:
_________________________
Christine Boles, Mayor
ATTEST: APPROVED AS TO FORM:
_________________________ _________________________
Sarah Coffey, City Clerk Michelle Kenyon, City Attorney

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Packet Pg. 291 Attachment: Attachment 5 Resolution Approving the Purchasing Policy for FY 2026-27 (6241 : FY 2026-27 Budget Adoption) Administrative Policy No. 76 p. 1

CITY OF PACIFICA

ADMINISTRATIVE POLICY
No.
76 PURCHASING POLICY
DATES REVISED:
07/01/2026; 07/01/2025;
02/26/2024; 12/13/2021;
10/14/2019
DATE ISSUED:
11/27/2014
ARTICLE 1. GENERAL INFORMATION

1.1 CONTROLLING REGULATIONS
Controlling regulations for the Purchasing function are set forth in the City of Pacifica Municipal Code, and California Government Codes Sections 54202 and 54203. In the event of any conflict between the purchasing policies set forth in this Administrative Policy ("Purchasing Policies") and federal law, state law, the City of Pacifica Municipal Code, and/or any City policy or provision, then the most stringent requirement must be used.

1.1.1 Purchasing Policies shall be modified by means of periodic Resolution of the City Council.

1.1.2 Nothing within the Purchasing Policies shall be construed as requiring a department, purchaser, or contractor to procure products that do not perform adequately for their intended use, exclude adequate competition, or are not available at a reasonable price in a reasonable period of time.

Additionally. nothing within the Purchasing Policies shall be construed as requiring the City, department, purchaser, or contractor to take any action that conflicts with local, State, or federal requirements.

1.1.3 Purchasing procedures may be developed and/or modified to facilitate compliance with Purchasing Policies, subject to City Manager approval.

1.1.4 Except for Article 12, these Purchasing Policies shall not apply to Public Projects as defined by Section 22002 of the California Public Contract Code1. All Public Projects and purchases related to the conduct of Public 1 Pursuant to the California Public Contract Code, “Public project” means any of the following:
(1) Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility. (2) Painting or repainting of any publicly owned, leased, or operated facility. (3) In the case of a publicly owned utility system, “public project” shall include only the construction, erection, improvement, or repair of dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher (Westlaw, 2023).

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Projects shall be subject to the provisions set forth in Title 3, Chapter 15 of the City of Pacifica Municipal Code and Article 12 of these Purchasing Policies. Purchases related to services of Design Professional Services for Public Projects shall be subject to the provisions of section 3.4 of this Purchasing Policy if they are a standalone contract. If Public Project preconstruction activities are integrated into a construction contract they shall be subject to the provisions set forth in Title 3, Chapter 15 of the City of Pacifica Municipal Code and Article 12 of these Purchasing Policies.

1.1.5 All dollar amounts noted in this Purchasing Policy shall be increased annually effective July 1 by the Consumer Price Index for All Urban Consumers (CPI-U) set in June for the San Francisco-Oakland-San Jose area.

1.2 ETHICS AND ACCOUNTABILITY
Purchasing Policies are developed under the authority of Chapter 3-4, Purchasing System, of the City of Pacifica Municipal Code. Section 3-4.02 designates the City Manager (or their designee) to serve as the Purchasing Officer. The Purchasing Officer is charged with the responsibility and authority for coordinating and controlling the City's purchasing function in accordance with these Purchasing Policies.

1.2.1 The Purchasing Officer and all departments shall adhere to the Purchasing Policies when procuring materials, supplies, equipment, vehicles and services. All purchases shall be limited to the approved budget or as otherwise authorized by City Council. Purchasing dollar limits specified in the Purchasing Policies are "per order" unless otherwise indicated in these Purchasing Policies.

1.2.2 Applicable competitive bidding categories, authorization limits or contract award procedures will be based on unit cost, total purchase cost for consolidated bid items, or fiscal year aggregates in the case of standing purchase orders or similar ongoing purchasing arrangements. Staging of purchases to avoid competitive bidding procedures or authorization limits is prohibited.

1.2.3 All personnel engaged in the purchasing function shall exercise good judgment in the use and stewardship of City resources, and all purchasing functions shall be conducted with absolute integrity and objectivity.

Purchases are subject to public scrutiny; employees shall follow a strict rule of personal conduct that will not compromise the City in the conduct of its business. Any employee intentionally and/or repeatedly making purchases in a manner that circumvents, ignores or fails to comply with Purchasing Policies will be subject to disciplinary action, in accordance with City personnel procedures.

1.3 PURCHASING OFFICER RESPONSIBILITIES
The Purchasing Officer is responsible for procurement of materials, supplies, equipment, vehicles and services; administration of purchasing policies and procedures; and

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Packet Pg. 293 Attachment: Attachment 5 - Exhibit A - Purchasing Policy (6241 : FY 2026-27 Budget Adoption) Administrative Policy No. 76 p. 3
management of surplus City property. To perform these functions efficiently and assist departments, the Purchasing Officer shall:

A. Coordinate and manage procurement of the City's materials, supplies, equipment, vehicles and services from the lowest responsive and responsible bidder when required by the Purchasing Policies.

B. Ensure full and open competition on all purchases as required by the Purchasing Policies, and make purchase award recommendations to the appropriate authority.

C. Identify, evaluate and utilize purchasing methods that best meet the needs of the City (cooperative purchases, standing purchase orders, contractual agreements, etc.).

D. Recommend revisions to Purchasing Policies and procedures when necessary, and keep informed of current developments in the field of Public Purchasing.

E. Act as the City's agent in the transfer and disposal of surplus equipment and materials.

1.4 DEPARTMENT RESPONSIBILITIES
The City Manager has assigned the responsibility for administering the Purchasing Policies and procedures to the individual departments (each a "Department") through the Department Director. Each Department is responsible for facilitating prudent efficient and cost-effective purchases. To meet these responsibilities, Departments shall:

A. Purchase supplies, services, and equipment necessary for the operation of City departments in accordance with the Purchasing Polices and other rules and regulations prescribed by the City Council and City Manager.

B. Negotiate and recommend the execution of contracts for purchases of supplies, services, and equipment in accordance with the Purchasing Policies.

C. Ensure staff is trained on the terminology and requirements set forth in the Purchasing Policies and any purchasing procedures promulgated by the City Council or City Manager.

D. Promote open competition on City purchases as determined by applicable federal, state, or local law or where it is in the best interest of the City.

E. Minimize urgent and sole source purchases, and provide written findings and documentation when such purchases may be necessary.

F. Refrain from "splitting" orders or projects for the purpose of avoiding procurement requirements or authorization limits.

G. Anticipate requirements sufficiently in advance to allow adequate time to obtain goods in accordance with best purchasing practices.

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H. Maximize coordination of purchases into a lesser number of large transactions to take advantage of cost savings for bulk purchases of commonly used goods and services
ARTICLE 2. ENCUMBRANCE OF FUNDS
Except in emergency or urgent situations, the Purchasing Officer shall not issue any Purchase Order nor shall any contract be approved for materials, supplies, equipment, vehicles or services unless there exists an unencumbered appropriation in the department budget account against which said purchase or contract is to be charged. Funds shall be encumbered by means of Purchase Order for all purchases exceeding $15,360.

ARTICLE 3. PURCHASING METHODS

3.1 PETTY CASH
The Assistant City ManagerDirector of Administrative Services is authorized to establish petty cash funds and spending limits with individual departments or divisions, as he or she deems appropriate, with the approval of the City Manager. The spending limit shall be reasonable and it shall remain consistent throughout the City. Departments may request petty cash for use in purchasing incidental and immediately needed items, and for expenditures that would be impractical to process through a purchase order as described in Section 3.3, below. Department staff may make purchases in amounts not to exceed $100.00 per order, and multiple petty cash slips shall not be used to "split" orders so as to circumvent this limit. The Department Director shall sign all petty cash slips.

Each Department's petty cash "bank" will be replenished based on submittal of signed petty cash slips and receipts for expenditures made. The Director of Administrative ServicesAssistant City Manager will be responsible for assuring compliance with this policy, in coordination with the Department Director responsible for daily operations and the security of petty cash in each department. The Director of Administrative ServicesAssistant City Manager or designee shall perform an annual internal audit of each Department's petty cash bank in compliance with the City's internal control policies.

3.2 CREDIT CARDS
Under certain circumstances, use of a City credit card may be the most appropriate method for purchases. The following will ensure internal control and timely payment of charges.

3.2.1 City credit cards will be distributed on an as-needed basis to staff at the discretion of the Department Director. Signature authority will be consistent with that for purchase orders, as set forth in Section 3.3, below.

3.2.2 City credit cards shall be utilized for purchase of supplies and materials, and shall not be used to contract for professional services.

3.2.3 Use of the City credit card for personal purchases, cash advances or to purchase alcohol is prohibited.

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Packet Pg. 295 Attachment: Attachment 5 - Exhibit A - Purchasing Policy (6241 : FY 2026-27 Budget Adoption) Administrative Policy No. 76 p. 5

3.2.4 Failure to comply with established procedures may result in discontinuance of use of the credit card by the employee/department, and may subject the employee to disciplinary personnel action, in accordance with City personnel procedures. The city council, as specified herein, have found that the use of a particular vendor to perform such services is in the best interests of the city.

3.3 PURCHASE ORDERS

3.3.1 Purchase Orders for items and services shall be limited to dollar values and approval authority as indicated in the table below:

Purchase Value Approval
Authority Requirements
Purchases Not
Exceeding
$15,360820
Supervisory No specific requirements
Purchases Between
$15,361821-
$25,60026,368
Department Head Solicitation of at least three (3) bids.

Telephone or written bids are
acceptable and must conform to the
informal procedures set forth in
Article 4.

Purchases Between
$25,60126,369-
$40,96042,188
Assistant City
Manager
Solicitation of three (3) bids. Must be
in writing and shall conform to the
formal bidding procedures as set
forth in Article 5.

Purchases Between
$40,96142,189-
$76,80079,104
City Manager Solicitation of three (3) bids and
approval of City Manager. Bids must
be in writing and conform to the
formal bidding procedures as set
forth in Article 5.

All purchases in
excess of
$76,80179,104
City Council
Approval
Solicitation of three (3) bids and
approval of City Council. Bids must
be in writing and conform to the
formal bidding procedures as set
forth in Article 5.

Except where otherwise established by State law, the dollar amount of the purchasing limits set forth above shall be periodically reviewed by the City Council and adjusted where deemed appropriate.

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Packet Pg. 296 Attachment: Attachment 5 - Exhibit A - Purchasing Policy (6241 : FY 2026-27 Budget Adoption) Administrative Policy No. 76 p. 6

3.3.3 Competitive quotes are not required for purchases below $15,360821, but telephone quotes shall be solicited prior to completing Purchase Orders if practical

3.3.4 Except in emergency or urgent circumstances, no work shall start until a purchase order has been issued for the project or service; purchase orders will not be issued, and no work shall commence, until all required documentation (e.g., insurance certificates and endorsements, licenses, permits) has been received.

3.3.5 Blanket Purchase orders which involve multiple individual purchases may be drawn on a single source open purchase order for those vendors who are a convenient source of supply by reason of economy, proximity, delivery, or quality of services.

3.3.6 Vendor Cards - Some vendor cards may use store "credit" or "debit" cards as a tool for City employees to purchase items and services. These items and services shall be limited to dollar values and approval authority as indicated in Section 3.3.1

3.3.7 The Purchasing Officer may, as needed, provided sufficient unencumbered funds exist, increase any Purchase Order issued by an amount of up to 10% for additional services, goods or equipment not anticipated at the time the Purchase Order was issued which increase may cause the total Purchase Order amount to exceed the authority maximums described in

3.3.1 for the City Manager by an amount of up to 10%.

3.4 CONTRACTS FOR GOODS AND SERVICES

3.4.1 City contracts shall be consistent with State and federal laws and shall be fully executed prior to the performance of any contract work. Each contract shall be approved as to form by the City Attorney, unless such contract is developed consistent with a template pre-approved as to form by the City Attorney (in which case the individual contract need not receive separate attorney approval).

3.4.2 Professional service contracts associated with the same project or program shall not be divided for the purpose of avoiding approval thresholds or procurement requirements. Contract signature authority for Contracts for Goods and Services shall be the following:

Purchase Value Approval
Authority Requirements

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Up to $76,80079,104
for non-Design
Professional2 services
City Manager Solicitation of three (3) bids and
approval of City Manager. Bids must
be in writing and conform to the
formal bidding procedures as set
forth in Article 5.

All purchases in
excess of
$76,80179,104 for
non-design
professional services
City Council
Approval
Solicitation of three (3) bids and
approval of City Council. Bids must
be in writing and conform to the
formal bidding procedures as set
forth in Article 5.

Up to $76,80079,104
for Design3
Professional services
City Manager Solicitation of three (3) bids and
approval of City Manager. Bids must
be in writing and conform to the
formal bidding procedures as set
forth in Article 5.

All purchases in
excess of
$76,80179,104 for
design professional
services
City Council Solicitation of three (3) bids and
approval of City Council. Bids must
be in writing and conform to the
formal bidding procedures as set
forth in Article 5.
2 “non-Design Professional Services” include specialized consulting, technical, financial, planning, information technology, appraisal, and advisory services.“Design Professional” shall have the same meaning as Civil Code section 8014. 3 “Design Professional” shall have the same meaning as Civil Code section 8014.

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Packet Pg. 298 Attachment: Attachment 5 - Exhibit A - Purchasing Policy (6241 : FY 2026-27 Budget Adoption) Administrative Policy No. 76 p. 8
For contracts relating to ongoing services that have a term of more than one year (multi-year contract) the signature limits identified above shall be determined by the maximum amount of compensation to be paid per contract year pursuant to the contract terms. For contracts relating to onetime services, the signature limits identified above shall be determined by the maximum compensation to be paid for the term of the contract. The City Manager or their designee may execute any contract for which authorization has been granted pursuant to Ordinance, Resolution, or other action of the City Council, provided sufficient unencumbered funds exist.

Contracts or agreements related to transfer of title to real property must be approved by the City Council and signed by the MayorCity Manager or designee. Any contract made, or purported to be made, by the City in violation of this section shall be void and of no force or effect.

3.4.3 The term or life of an Agreement shall be set, including, e.g., dates for required performance, with dates for phase completion if applicable, as well as for overall project completion. An Agreement may be made for a project in which completion of required work extends beyond one year; such an Agreement is not considered a multi-year agreement in the context of these Purchasing Policies.

3.4.4 Multi-year agreements are encouraged for ongoing general services and consultant/professional services with a defined scope of work such as, but not limited to, janitorial and landscape maintenance, attorneys and accountants, and printing. Any renewal periods for such contracts shall require a contract amendment, including proper signatures, executed prior to performance of the additional work or provision of the additional goods.

Renewals should consider consultant performance and fee reasonableness.

3.4.5 The City Manager or their designee may approve alternative selection, evaluation and award procedures for a specific contract or class of contracts-except Public Project contracts which shall be governed by Title 3, Chapter 15 of the City of Pacifica Municipal Code-if available information demonstrates that a substantial cost savings, enhancement in quality or performance, or other public benefit will result from use of the alternative contracting method. The alternative contracting method shall meet the purpose and goals of the Purchasing Policies and shall substantially promote the public interest in a manner that could not be achieved by complying with the competitive procurement methods otherwise available under the Purchasing Policies.

3.4.5 Professional services may be evaluated on qualifications, experience, project approach, capacity, references, and fee, with selection based on best value or most qualified consultant rather than lowest cost.

3.4.6 In the case of environmental planning consultants, the cost of which will be fully defrayed by project applicants, these procedures may be dispensed with upon the request of the project applicant. In such case, the Purchasing Officer or Department Head shall select a consultant based upon the criteria set forth in the RFP and other guidelines as required by this policy.

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Packet Pg. 299 Attachment: Attachment 5 - Exhibit A - Purchasing Policy (6241 : FY 2026-27 Budget Adoption) Administrative Policy No. 76 p. 9

3.4.6 Department Heads are responsible for monitoring contract performance, contract expiration dates, and renewal options. Contracts should be reviewed sufficiently in advance of expiration to allow adequate time for renewal, renegotiation, competitive solicitation, or transition to a replacement provider, as appropriate, in order to avoid disruption of City operations or services.

3.4.7 Executed contracts shall be transmitted to the City Clerk for official retention in accordance with the City's records retention requirements.

Departments shall ensure that contract records include the term of the agreement, expiration date, renewal provisions, and other information necessary to facilitate contract administration, monitoring, and review.

Contract records may also be maintained in the City's designated contract management or records management system to support ongoing administration and tracking.

3.5 CHANGE ORDERS AND CONTRACT AMENDMENTS
A substantial change to a Contract (i.e., pricing, terms and conditions, specifications and/or scope of work) shall be documented as a Change Order or Contract Amendment.

3.5.1 The Purchasing Officer may, as needed, provided sufficient unencumbered funds exist, increase any Contract approved by the City Council or by the City Manager by an amount of 10% for additional services, goods or equipment not anticipated at the time the Contract was executed through a Change Order, or Contract Amendment which increase may cause the total Contract amount to exceed the authority maximums described in

3.4.2 for the City Manager by an amount of up to 10%.

3.5.2 A Change Order or Contract Amendment is not required when taxes, shipping and/or handling cause a purchase to exceed the authorized (Purchase Order) amount; the signatory limit may also be exceeded in that circumstance. However, departments must submit a Change Order in the financial system to increase the Purchase Order amount and ensure the final expenditure is properly recorded and encumbered.

3.6 URGENT AND EMERGENCY PURCHASES
Sound judgment shall be used in keeping urgent and emergency purchases to an absolute minimum. Specific procedures for managing these purchases shall apply, as determined by the Purchasing Officer.

Definitions - For the purposes of this Section 3.6, the following definitions shall apply:
a. "Emergency purchase" shall mean purchases made under circumstances of a Federal, State or City declared disaster or where circumstances pose clear, substantial, and imminent danger (e.g., fire, flood, explosion, storm, earthquake,

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epidemic, riot, civil defense) and immediate action is necessary to prevent or mitigate major loss or significant impairment of life, health, property, or essential public services; procurement should not be delayed by use of normal competitive and financial procedures. Emergency purchases related to Public Projects must meet requirements established by Title 3, Chapter 15 of the City of Pacifica Municipal Code and the Uniform Construction Cost Accounting Act. b. "Urgent purchase" shall mean a purchase made when a sudden, unexpected occurrence, while not an emergency as defined in the Purchasing Policies, necessitates expedited action to prevent or mitigate loss, protect property or public health and safety, and ensure essential public services (e.g., street signal outage, heating system failure at the Senior Center in winter, off-site fire truck repair).

3.6.1 Urgent Purchases - Immediate purchases of material, supplies, equipment, and services may be made when an urgent circumstance (as defined in the Purchasing Policies) exists, and procurement should not be delayed by use of normal competitive and financial procedures. Urgent purchases of up to $25,60026,368 shall be authorized by the Department Head or designee; the Assistant City Manager may authorize urgent purchases up to $40,96042,188; and the City Manager may authorize urgent purchases up to $76,80079,104. Urgent purchases shall be followed as soon as practical, with the submission of a confirming purchase order or contract that includes a written justification for the purchase having been made outside normal procedures. Lack of planning does not constitute justification for an urgent purchase.

3.6.2 Emergency Purchases - In an emergency (as defined in the Purchasing Policies), the City Manager or his/her designee may authorize the immediate purchase of material, supplies, equipment, and services, including those in excess of his/her City Council-approved signature threshold. Such purchases shall be followed, as soon as practical, with submission of a Confirming Requisition that includes a written justification for the purchase having been made outside normal procedures. City Council shall be notified , at its next regular meetingas soon as practical, of any emergency purchases in excess of $76,80079,104.

3.6.3 In the case of a disaster or for civil defense, nothing contained in this document shall limit the authority of the City Manager to make purchases and take such other emergency steps as are, or may be, authorized by the City Council, including opening a line or lines of credit to accommodate necessary purchases.

3.6.4 Emergency purchases related to Public Projects are not subject to these provisions and shall be governed by Title 3, Chapter 15 of the Pacifica Municipal Code and the applicable provisions of the California Public Contract Code or the Uniform Construction Cost Accounting Act.

3.6.5 Should any urgent or emergency purchase cause any budget line item to exceed the approved budget, the department shall request City Manager approval to exceed and amend the budget, subject to subsequent City

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Council approval for an additional budget appropriation or a budget amendment to cover the purchase.

3.6.5 ARTICLE 4. INFORMAL COMPETITIVE PRICING - GOODS AND GENERAL SERVICES,

NON-PUBLIC PROJECTS

4.1 COMPETITIVE QUOTES
The Department or the Purchasing Officer may purchase goods and services in the open market based on evaluation of informal competitive quotes. A minimum of three (3) informal competitive quotes shall be solicited for purchases greater than $15,360 820 and less than $25,60026,369. Requests for quotations must be made or distributed, utilizing an approved form with required signatures provided or approved by the Assistant City Manager. Written documentation of quotes must be provided. All telephone and written bid documentation shall be retained for audit purposes in accordance with the City's Records Retention Policy.

4.1.1 The Purchasing Officer or designee may award the purchase to the lowest responsive and responsible party whose quote fulfills the intended purpose, quality, and delivery needs of the solicitation, provided an unencumbered appropriation for that item exists. In lieu of awarding the purchase, the Purchasing Officer or designee may reject the quotes, or may negotiate further to obtain terms more acceptable to the City.

4.1.2 Staff may dispense with quotes in emergency and urgent circumstances, and for exempt and sole source purchases, as these are defined in the Purchasing Policies.

ARTICLE 5. FORMAL COMPETITIVE PRICING - GOODS AND GENERAL SERVICES,

NON-PUBLIC PROJECTS
When non-public works project purchases are anticipated to exceed $15,36026,368, and/or require City Council approval, formal competitive procedures must be completed.

These procedures include sealed proposals solicited through a Request for Proposal (RFP) and sealed bidding solicited through an Invitation to Bid (IFB).

5.1 REQUEST FOR PROPOSALS (RFP)/ REQUEST FOR QUALIFICATION (RFQ)

5.1.1 A contract or purchase may be entered into by means of sealed proposals solicited through a Request for Proposal (RFP)/Request for Qualifications (RFQ). The RFP or RFQ shall state the criteria for evaluation and the relative importance of price and other factors.

5.1.2 The Purchasing Officer or designee shall determine the RFP/RFQ procedures, including whether and where public notice of formal proposals/bids shall be made. The Purchasing Officer or designeedd may establish evaluation committees to review proposals, conduct interviews, rank firms, and recommend a selection. Sealed proposals/bids shall be

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submitted to the Purchasing Officer or Department Head, as appropriate, by the date and time specified on the prescribed forms.

5.1.3 No work shall be performed unless and until a Purchase Order has been issued, or a contract has been executed except under urgent and emergency circumstances as defined in this policy.

5.1.4 RFPs/RFQs shall be awarded to the lowest responsible bidder/most responsive bid. In making this determination, the Purchasing Officer or designee may consider the criteria set forth in Article 6, below.

ARTICLE 6. MOST RESPONSIVE BID
In addition to price, the Purchasing Officer or designee may consider the following criteria in determining the most responsive bidder.

6.1 The ability, capacity, and skill of the bidder/proposer, including the adequacy of physical facilities and financial resources, to perform he contract/purchase order within the specified time and production requirements.

6.2 The bidder's/proposer's record of performance on previous contracts/purchase orders with the City.

6.3 The character, integrity, experience, and reputation of the bidder/proposer, including compliance with laws and ordinances relating to the contract/purchase order.

6.4 The bidder's/proposer's ability to provide future maintenance and service for the use of the subject of contract/purchase order.

6.5 The number and scope of conditions attached to the bid or quotation.

6.6 The quality, availability, and adaptability of supplies or contractual services to the particular use required.

6.7 The compatibility of supplies, materials, or equipment with existing supplies, materials, or equipment already in use in the City.

6.8 The City's past experience with similar supplies, materials, or equipment in best meeting the City's need.

6.9 The City's experience and ability to maintain or operate the supplies, materials, or equipment.

ARTICLE 7. EXEMPTIONS FROM COMPETITIVE PRICING

7.1 Protection of Public Welfare - Competitive pricing procedures may be dispensed with when necessary for the protection of the public peace, health, safety, welfare, or property, or when the interests of the City or

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the public require that an order be placed with the nearest available source of supply.

7.2 Less Expensive Alternative - The City Manager or Assistant City Manager is authorized to approve purchases and dispense with competitive pricing requirements when there is a less expensive alternative (State contract, used equipment, etc.) that will serve the City as well as new equipment services available on the open market.

7.3 Purchases Not Susceptible to Competitive Process - Purchases not readily adaptable to the open market and bidding processes may be eligible for exemption from competitive pricing. These purchases include, but are not limited to subscriptions, memberships, software licenses, advertisements, and travel expenses. Exemptions are restricted to those items appearing on a list maintained by the Assistant City ManagerAdministrative Services Department. Departments may submit written requests to the Administrative Services Director for additional exemptions, which will be approved if appropriate and added to the list.

7.4 Sole Source Purchases - Upon recommendation of the Department Head, the City Manager or Assistant City Manager may waive bidding requirements for sole source purchases if he/she determines sufficient justification exists. Sole source purchases shall be coordinated by the Assistant City Manager, and may include proprietary items sold directly from the manufacturer, items that have only one distributor authorized to sell in this area, items that perform a complex or unique function, or purchases when a certain product is the only one proven to be acceptable or compatible with existing equipment. Sole source purchases should be kept to a minimum, to encourage competition and more favorable prices.

7.5 Cooperative Purchases - The Purchasing Officer has the authority to: join with other public jurisdictions in Cooperative Purchasing Agreements; buy directly from a vendor at a price established by competitive bidding by another public jurisdiction in substantial compliance with this document, even if the City has not joined with that public agency in a formal agreement; and, purchase from the United States of America, any state, municipality or other public corporation, or agency, without following formal purchasing procedures as defined in the Purchasing Policy. A Purchase Order is required for purchases made through Cooperative Purchase Agreements, subject to approvals and dollar limitations accordingly.

ARTICLE 8. PURCHASE SPECIFICATIONS

8.1 Use of brand names in specifications shall be for the purpose of describing the standard of quality, performance, and characteristics the City desires, and not be intended to limit or restrict competition. If a brand name is incorporated into a specification, a minimum of two acceptable brands shall be listed whenever possible and shall be followed by the statement "or approved equal" unless the sole source policy applies.

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8.2 Use of specifications provided by a specific manufacturer should be avoided; however, if used, the name of the manufacturer, model number, etc., should be indicated. The bid document shall clearly state that the use of the manufacturer's specifications are for the sole purpose of establishing the level of quality desired. The Purchasing Officer will determine and approve any product submitted as an "or equal."

8.3 The Purchasing Officer may limit bidding to a specific product type or a brand name product when purchasing equipment or supplies required to be compatible with existing equipment or to perform complex or unique functions.

ARTICLE 9. DISPOSAL OF SURPLUS PROPERTY
Any sale, donation, or disposal of surplus personal property shall be accomplished in conformance with Administrative Policy No. 7.

ARTICLE 10. RISK MANAGEMENT

10.1 The City Manager shall identify a Risk Management administrator to establish insurance requirements and monitor compliance in accordance with the type of services provided. The Purchasing Officer or designee shall work in cooperation with the Risk Management administrator to include the proper insurance requirements in any standard contract for services. Purchase Orders will not be issued until all required insurance certificates and endorsements have been received, reviewed and approved; additional requirements may apply to Public Projects.

10.2 Requirements for contract bonds, such as Performance Bonds, Labor and Material Bonds and/or Fidelity Bond shall be determined by the Department Head, with advisement from the Purchasing Officer and Risk Management administrator, when required. Bonds are maintained by the project manager and forwarded to the City Clerk's office upon contract completion.

ARTICLE 11. CONTRACTOR'S OPERATING REQUIREMENTS

11.1 Any person doing business with the City must possess a current City of Pacifica Business License, as required by the Pacifica Municipal Code.

11.2 Prior to contract award, the Department shall verify that the contractor's State Contractors License is valid and in good standing, and the Contractor has not been debarred by the federal or state government.

11.3 All contractors (including consultants and service providers) and their respective subcontractors who meet any of the following criteria shall be required to successfully pass a California Department of Justice Live Scan Fingerprinting background check conducted by the City of Pacifica Police Department:
• Work with children when performing on-site services

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• Access City of Pacifica computers
Contractors shall be responsible for obtaining Live Scan Fingerprinting prior to performing work and shall bear the cost thereof at the time of fingerprinting.

ARTICLE 12. FEDERAL PROCUREMENT
Any procurement made pursuant to a federal award or subject to reimbursement, in whole or in part, with federal funds must comply with the City's procurement procedures, including the general requirements set forth in this Policy, state law, the City's Municipal Code and the applicable federal procurement requirements set forth in 2 CFR §§ 200.317 through 200.326, as may be amended, including, but not limited to, 2 CFR § 200.322 ("Procurement of recovered materials"), 2 CFR § 200.323 ("Contract cost and price"), 2 CFR § 200.324 ("Federal awarding agency or pass• through entity review"), 2 CFR § 200.325 ("Bonding requirements"), 2 CFR §200.326 ("Contract provisions") and 2 CFR § 200.318 ("General Procurement Standards"). In the event of any conflict between the purchasing policies set forth in this Administrative Policy ("Purchasing Policies") and federal law, state law, the City of Pacifica Municipal Code, and/or any City policy or provision, then the most stringent requirement must be used. City employees must comply with funding agency requests for review of technical specifications or procurement documents as provided in 2 CFR § 200.324.

12.1 GENERAL FEDERAL REQUIREMENTS AND RECOMMENDATIONS

12.1.1 Cost/Price Analysis. For federally-funded procurements in excess of the currently applicable Simplified Acquisition Threshold, including contract modifications, a cost or price analysis must be performed, and must include making independent estimates before receiving bids or proposals. (See 2 CFR § 200.323.) Costs or prices based on estimated costs for federallyfunded contracts are allowable only as provided in 2 CFR § 200.323.

12.1.2 Profit Negotiation. For a federal contract awarded without price competition, profit must be negotiated as a separate element of price. To establish fair and reasonable profit, consideration must be given to the complexity of the work, the contractor's risk, the contractor's investment, the amount of subcontracting, record of past performance, and industry profit rates, as further specified in 2 CFR § 200.323(b).

12.1.3 Excess or Surplus Property. When it will reduce project costs and is feasible, use of federal excess and surplus property is encouraged over purchasing new. (See 2 CFR § 200.318(f).)

12.1.4 Geographical Preferences. Geographical preferences may not be used for federally-funded procurements, unless expressly authorized by the awarding agency or as specifically allowed by state licensing laws. When contracting for architectural and engineering (A/E) services, geographic location may be a selection criterion provided its application leaves an

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appropriate number of qualified firms, given the nature and size of the project, to compete for the contract (See 2 CFR § 200.319(b).)

12.1.5 Time and Materials. A time and materials contract may not be used for a federally-funded procurement, unless the Purchasing Officer has determined that no other type of contract is suitable for the procurement, and provided the procurement complies with 2 CFR§ 200.318(j). Similarly, a "cost plus" contract may not be used, as further specified in 2 CFR § 200.323.

12.1.6 Intergovernmental Agreements. Use of intergovernmental agreements is encouraged where appropriate. (See 2 CFR § 200.318(e); and see Section

5.4, Cooperative Purchasing Agreements, below.)

12.1.7 Procurement Records. Records must be maintained for each procurement of goods or services documenting the history of a procurement, including (1) records of the rationale for procurement method, (2) selection of contract type, (3) contractor selection or rejection, and (4) the basis for the contract price. Procurement records must be maintained by each department. (See 2 CFR § 200.318(i).)

12.2 FEDERAL CONTRACTOR REQUIREMENTS

12.2.1 Responsible Contractors. Contracts will only be awarded to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement, with consideration given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources (See CFR § 200.318(h).) A contractor must also be "responsible" as determined under California law, Including Public Contract Code section 1103.

12.2.2 Small and Minority Businesses. The City will take all necessary affirmative steps, including those identified in 2 CFR § 200.321(b), to assure that minority businesses, women's business enterprises, and labor surplus area firms are used when possible.

12.3 FEDERAL METHODS OF PROCUREMENT
Depending on the type and amount of goods or services, the City will use one of the below methods for procurements subject to the Federal Procurement Requirements, consistent with 2 CFR section 200.320.

12.3.1 Procurement by micro-purchases. The City may acquire supplies or services, the aggregate dollar amount of which does not exceed the micropurchase threshold in 2 CFR § 200.67. A micro- purchase contract may be awarded without soliciting competitive quotes provided the price is reasonable, unless otherwise specified under the City's procurement procedures. To the extent practicable, the City will distribute micropurchases equitably among qualified suppliers. (See 2 CFR § 200.320(a).)

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12.3.2 Procurement by small purchase procedures. The City may use simple and informal procurement methods for securing services, supplies, or other property that do not cost more than the Simplified Acquisition Threshold in 2 CFR § 200.88. If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources. (See 2 CFR § 200.320(b).)

12.3.3 Procurement by sealed bids (formal advertising). The City may publicly solicit sealed bids to be opened in public and award a fixed price contract to the lowest responsible bidder, in the manner required for formal bidding as specified in Article 5 of this Policy and in compliance with 2 CFR § 200.320(c)(1).

12.3.4 Procurement by competitive proposals. The City may use this method when the conditions for use of sealed bids are not appropriate and more than one source submits an offer following a request for proposal. If the City uses this method, it must comply with the requirements of 2 CFR § 200.320(d), in addition to any other applicable City or state requirements.

12.3.5 Procurement by noncompetitive proposals. The City may solicit a proposal from only one source when: (a) the item is available only from a single source, (b) the public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation, (c) the federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the City, or (d) competition is determined to be inadequate after solicitation of a number of sources. The procurement must comply with the provisions of Article 7.4, Sole Source Purchases, above, in addition to the requirements set forth in 2 CFR § 200.320(f).

12.4 FEDERAL CONTRACT REQUIREMENTS

12.4.1 Required Contract Provisions. Pursuant to 2 CFR § 200.326, contracts for federally-funded procurements must contain the applicable provisions described in Appendix II to Part 200, Contract Provisions for non-Federal Entity Contracts Under Federal Awards.

12.4.2 Value Engineering. For larger federally-funded construction projects, a provision for value engineering may be added to the construction contract, subject to prior authorization from the Purchasing Officer and approval as to form by the City Attorney. A value engineering provision must include a clear procedure for submission, approval, and cost-sharing of savings, consistent with Public Contract Code section 7101. (See 2 CFR § 200.318(g).)

12.4.3 Compliance with Federal Law, Regulations, and Executive Orders.

Contracts for federally-funded procurements must acknowledge that federal financial assistance will be used to fund the contract and require the contractor to comply with all applicable federal law, regulations, executive orders, and applicable federal policies, procedures, and directives.

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12.4.4 No Obligation by Federal Government. Contracts for federally- funded procurements must state that the Federal Government is not a party to the contract and is not subject to any obligations or liabilities to the City, contractor, or any other party.

ARTICLE 13. PURCHASING PERTAINING TO RECOVERED ORGANIC WASTE AND

RECYCLED-CONTENT PAPER PROCUREMENT POLICY

13.1 Purpose and Findings

13.1.1 It is the policy of the City, applicable to all departments and divisions, to incorporate environmental considerations including recycled-content and recovered Organic Waste product use into purchasing practices and procurement. This Recovered Organic Waste Product Procurement Policy (Policy) will help the City to:

1. Protect and conserve natural resources, water, and energy;

2. Minimize the City’s contribution to climate change, pollution, and solid waste disposal; and,

3. Comply with State requirements as contained in 14 CCR Division 7, Chapter 12, Article 12 (SB 1383 procurement regulations) to procure a specified amount of Recovered Organic Waste Products to support Organic Waste disposal reduction targets and markets for products made from recycled and recovered Organic Waste materials, and to purchase Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper.

13.1.2 The procedures for the purchase of Recovered Organic Waste Products and Recycled-Content Paper Products shall comply fully with this Policy (“Policy”).

13.2 Definitions
For purposes of this Policy, the following definitions shall apply, unless otherwise apparent from the context. Certain words and phrases used in this Policy are defined as follows:

13.2.1 “Annual Recovered Organic Waste Product Procurement Target” means the amount of Organic Waste in the form of a Recovered Organic Waste Product that the City is required to procure annually under 14 CCR Section 18993.1, as determined by CalRecycle.

13.2.2 “CalRecycle” means California's Department of Resources Recycling and Recovery, which is the Department designated with responsibility for developing, implementing, and enforcing SB 1383 Regulations on Cities (and others).

13.2.3 “City” means the City of Pacifica.

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13.2.4 “City Enforcement Officer” means any city employee or employee of a contracting agency, including the county, or any agent of the city, having the authority to enforce any applicable law. The Designee for Edible Food Recovery is a County Agency Enforcement Official.

13.2.5 “Compost” means the product resulting from the controlled biological decomposition of organic solid wastes that are source separated from the municipal solid waste stream or which are separated at a centralized facility or as otherwise defined in 14 CCR Section 17896.2(a)(4).

13.2.6 “Compost eligible for meeting the Annual Recovered Organic Waste Product Procurement Target must be produced at a compostable material handling operation or facility permitted or authorized under 14 CCR Chapter 3.1 of Division 7 or produced at a large volume in-vessel digestion facility that composts on-site as defined and permitted under 14 CCR Chapter 3.2 of Division 7. Compost shall meet the State’s composting operations regulatory requirements. “Direct Service Provider” means a person, company, agency, district, or other entity that provides a service or services to City pursuant to a contract or other written agreement or as otherwise defined in 14 CCR Section 18982(a)(17).

13.2.7 “Electricity Procured from Biomass Conversion” means electricity generated from biomass facilities that convert recovered Organic Waste, such as wood and prunings from the municipal stream, into electricity.

Electricity procured from a biomass conversion facility may only count toward the City’s Annual Recovered Organic Waste Product Procurement Target if the facility receives feedstock directly from certain permitted or authorized compostable material handling operations or facilities, transfer/processing operations or facilities, or landfills, as described in 14 CCR Section 18993.1(i).

13.2.8 “Organic Waste” means solid wastes containing material originated from living organisms and their metabolic waste products including, but not limited to, food, yard trimmings, organic textiles and carpets, lumber, wood, Paper Products, Printing And Writing Paper, manure, biosolids, digestate, and sludges, or as otherwise defined in 14 CCR Section 18982(a)(46).

Biosolids and digestate are as defined in 14 CCR Section 18982(a)(4) and 14 CCR Section 18982(a)(16.5), respectively.

13.2.9 “Paper Products” include, but are not limited to, paper janitorial supplies, cartons, wrapping, packaging, file folders, hanging files, corrugated boxes, tissue, and toweling; or as otherwise defined in 14 CCR Section 18982(a)(51).

13.2.10 “Printing and Writing Papers” include, but are not limited to, copy, xerographic, watermark, cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper, note pads, writing tablets, newsprint, and other uncoated writing papers, posters, index cards, calendars, brochures, reports, magazines, and publications; or as otherwise defined in 14 CCR Section 18982(a)(54).

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13.2.11 “Procurement of Recovered Organic Waste Products” shall mean purchase or acquisition (e.g., free delivery or free distribution from a hauler or other entity via a written agreement or contract), and end use by the City or others. The City’s Annual Recovered Organic Waste Product Procurement Target can be fulfilled directly by the City or by Direct Service Providers through written contracts or agreements for Procurement of Recovered Organic Waste Products at the City’s behest.

13.2.12 “Publicly-Owned Treatment Works” or “POTW” has the same meaning as in Section 403.3(r) of Title 40 of the Code of Federal Regulations.

13.2.13 “Recovered Organic Waste Products” means products made from California, landfill-diverted recovered Organic Waste processed at a permitted or otherwise authorized operation or facility, or as otherwise defined in 14 CCR Section 18982(a)(60). Products that can be used to meet the Annual Recovered Organic Waste Product Procurement Target shall include Compost, SB 1383 Eligible Mulch, Renewable Gas from an in-vessel digestion facility, and Electricity Procured from Biomass Conversion as described herein and provided that such products meet requirements of 14 CCR, Division 7, Chapter 12, Article 12.

13.2.14 “Recordkeeping Designee” means the Finance Director or their designee to track procurement and maintain records of Recovered Organic Waste Product procurement efforts both by the City and others, if applicable, as required by 14 CCR, Division 7, Chapter 12, Articles 12 and 13.

13.2.15 “Recyclability" means that the Paper Products and Printing and Writing Paper offered or sold to the City are eligible to be labeled with an unqualified recyclable label as defined in 16 Code of Federal Regulations Section 260.12 (2013)..

13.2.16 “Recycled-Content Paper” means Paper Products and Printing and Writing Paper that consists of at least 30 percent, by fiber weight, postconsumer fiber, or as otherwise defined in 14 CCR Section 18982(a)(61).

13.2.17 “Renewable Gas” means gas derived from Organic Waste that has been diverted from a landfill and processed at an in-vessel digestion facility that is permitted or otherwise authorized by 14 CCR to recover Organic Waste, or as otherwise defined in 14 CCR Section 18982(a)(62).

13.2.18 “SB 1383” means Senate Bill 1383 of 2016 approved by the Governor on September 19, 2016, which added Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and added Chapter 13.1 (commencing with Section 42652) to Part 3 of Division 30 of the Public Resources Code, establishing methane emissions reduction targets in a statewide effort to reduce emissions of short-lived climate pollutants, as amended, supplemented, superseded, and replaced from time to time.

13.2.19 “Recycled-Content Paper” means Paper Products and Printing and Writing Paper that consists of at least 30 percent, by fiber weight, postconsumer fiber, or as otherwise defined in 14 CCR Section 18982(a)(61).

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13.2.20 “SB 1383 Regulations” or “SB 1383 Regulatory” means or refers to, for the purposes of this policy, the Short-Lived Climate Pollutants (SLCP): Organic Waste Reductions regulations developed by CalRecycle and adopted in 2020 that created Chapter 12 of 14 CCR, Division 7 and amended portions of regulations of 14 CCR and 27 CCR.

13.2.21 “SB 1383 Eligible Mulch” means mulch eligible to meet the Annual Recovered Organic Waste Product Procurement Target, pursuant to 14 CCR Chapter 12 of Division 7. This SB 1383 Eligible Mulch shall meet the following conditions for the duration of the applicable procurement compliance year, as specified by 14 CCR Section 18993.1(f)(4):

1. Produced at one of the following facilities:
a. A compostable material handling operation or facility as defined in 14 CCR Section 17852(a)(12), that is permitted or authorized under 14 CCR Division 7, other than a chipping and grinding operation or facility as defined in 14 CCR Section 17852(a)(10);
b. A transfer/processing facility or transfer/processing operation as defined in 14 CCR Sections 17402(a)(30) and (31), respectively, that is permitted or authorized under 14 CCR Division 7; or, c. A solid waste landfill as defined in Public Resources Code Section 40195.1 that is permitted under 27 CCR Division 2.

2. Meet or exceed the physical contamination, maximum metal concentration, and pathogen density standards for land application specified in 14 CCR Sections 17852(a)(24.5)(A)1 through 3.

3. The City and/or its Recordkeeping Designee may only count mulch as a Recovered Organic Waste Product to meet its Annual Recovered Organic Waste Procurement Target if said mulch meets the standards specified in paragraphs 1 and 2 above.

13.2.22 “State” means the State of California.

13.3 Recovered Organic Waste Product Procurement

13.3.1 Procurement Target

1. City will annually procure for use or giveaway a quantity of Recovered Organic Waste Products that meets or exceeds its Annual Recovered Organic Waste Product Procurement Target through the
implementation of this Policy.

2. To be eligible to meet the Annual Recovered Organic Waste Product Procurement Target, products that may be procured include the following (provided that each product meets the criteria included in their respective definition in this Policy:

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a. SB 1383 Eligible Compost.
b. SB 1383 Eligible Mulch.
c. Renewable Gas (in the form of transportation fuel, electricity, or heat).
d. Electricity Procured from Biomass Conversion.

13.3.2 Requirements for City Departments

1. Compost and SB 1383 Eligible Mulch procurement. The Department of Public Works shall:
a. Use eligible Compost and SB 1383 Eligible Mulch produced from recovered Organic Waste for landscaping, maintenance,
renovation, or construction, as practicable, whenever available, and capable of meeting quality standards and criteria specified. SB 1383 Eligible Mulch used for land application must meet or exceed the physical contamination, maximum metal concentration and pathogen density standards specified in 14 CCR Section
17852(a)(24.5)(A)(1) through (3).
b. When the City uses eligible Compost and SB 1383 Eligible Mulch and the applications are subject to the City’s Chapter 8-7 of the Pacifica Municipal Code, comply with one of the following, whichever is more stringent, (i) Chapter 8-7 of the Pacifica Municipal Code, if more stringent than the State’s Model Water Efficient Landscape Ordinance (MWELO), or (ii) Sections 492.6 (a)(3)(B), (C), (D), and (G) of the State’s Model Water Efficient Landscape Ordinance, Title 23, Division 2, Chapter 2.7 of the CCR, as amended September 15, 2015, which requires the submittal of a landscape design plan with a “Soil Preparation, Mulch, and Amendments Section” to include the following:
(i) For landscape installations, Compost at a rate of a minimum of 4 cubic yards per 1,000 square feet of permeable area shall be incorporated to a depth of six (6) inches into the soil. Soils with greater than six percent (6%) organic matter in the top six (6) inches of soil are exempt from adding Compost and tilling. (ii) Apply a minimum three- (3-) inch layer of mulch on all exposed soil surfaces of planting areas except in turf areas, creeping or rooting groundcovers, or direct seeding applications where mulch is contraindicated. To provide habitat for beneficial insects and other wildlife, leave up to five percent (5%) of the landscape area without mulch. Designated insect habitat must be included in the landscape design plan as such.
(iii) Procure organic mulch materials made from recycled or postconsumer materials rather than inorganic materials or virgin

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forest products unless the recycled post-consumer organic products are not locally available. Organic mulches are not required where prohibited by local Fuel Modification Plan Guidelines or other applicable local ordinances.
(iv) For all mulch that is land applied, procure SB 1383 Eligible Mulch that meets or exceeds the physical contamination, maximum metal concentration, and pathogen density standards for land applications specified in 14 CCR Section
17852(a)(24.5)(A)(1) through (3).
c. Keep records, including invoices or proof of Recovered Organic Waste Product procurement (either through purchase or
acquisition), and submit records to the Recordkeeping Designee on a schedule to be determined by Recordkeeping Designee. Records shall include:
(i) General procurement records, including:
(a) General description of how and where the product was used and applied, if applicable;
(b) Source of product, including name, physical location, and contact information for each entity, operation, or facility from whom the Recovered Organic Waste Products were
procured;
(c) Type of product;
(d) Quantity of each product; and,
(e) Invoice or other record demonstrating purchase or
procurement.
(ii) For eligible Compost and SB 1383 Eligible Mulch provided to residents through giveaway events or other types of distribution methods, keep records of the Compost and SB 1383 Eligible Mulch provided to residents. Records shall be maintained and submitted to the Recordkeeping Designee in accordance with the requirements specified in this Policy.
(iii) For procurement of SB 1383 Eligible Mulch, maintain an updated copy of the ordinance or enforceable mechanism(s) requiring that the mulch procured by the City or Direct Service Provider meets the land application standards specified in 14 CCR Section 18993.1, as it may be amended from time to time. d. When Procurement of Recovered Organic Waste Products occurs through a Direct Service Provider, enter into a written contract or agreement or execute a purchase order with enforceable provisions that includes: (i) definitions and specifications for SB 1383 Eligible

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Mulch, eligible Compost, Renewable Gas, and/or Electricity Procured from Biomass Conversion; and, (ii) an enforcement mechanism (e.g., termination, liquidated damages) in the event the Direct Service Provider is not compliant with the requirements.

2. Renewable Gas procurement (used for fuel for transportation, electricity, or heating applications). For Renewable Gas procurement, City shall:
a. Procure Renewable Gas made from recovered Organic Waste for transportation fuel, electricity, and heating applications to the degree that it is appropriate and available for the City and to help meet the Annual Recovered Organic Waste Product Procurement Target, which requires compliance with criteria specified in 14 CCR Section 18993.1.
b. Keep records in the same manner indicated in Section (B)(1)(c) of this Policy for the amount of Renewable Gas procured and used by the City, including the general procurement record information and submit records to the Recordkeeping Designee on a schedule to be determined by Recordkeeping Designee, which shall be no less than annually. City shall additionally obtain the documentation and submit records specified in Section (B)(2)(c) of this Policy below, if applicable.
c. If the City procures Renewable Gas from a POTW:
(i) Annually verify that the Renewable Gas from the POTW complies with the requirements specified in 14 CCR Section 18993.1(h), including, but not limited to the exclusion in 14 CCR Section 17896.6(a)(1) and the items listed in Section (B)(2)(c) of this Policy.
(ii) Annually receive a record from the POTW documenting the tons of Organic Waste received by the POTW from: (i) a
compostable material handling operation or facility as defined in 14 CCR Section 17852(a)(12), other than a chipping and
grinding operation or facility as defined in 14 CCR Section 17852(a)(10), that is permitted or authorized under 14 CCR Division 7; (ii) transfer/processing facility or transfer/processing operation as defined in 14 CCR Sections 17402(a)(30) and (31), respectively, that is permitted or authorized under 14 CCR Division 7; or (iii) a solid waste landfill as defined in Public Resources Code Section 40195.1 that is permitted under 27 CCR Division 2.
(iii) Annually receive documentation from the POTW of the percentage of biosolids that the POTW produced and
transported to activities that constitute landfill disposal in order to demonstrate that the POTW transported less than twenty-five percent (25%) of the biosolids it produced to activities that

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constitute landfill disposal. For the purposes of this Policy, landfill disposal is defined pursuant to 14 CCR Section 18983.1(a) and includes final disposition at a landfill; use of material as alternative daily cover or alternative intermediate cover at a landfill, and other dispositions not listed in 14 CCR Section 18983.1(b). Alternative daily cover or alternative intermediate cover are defined in 27 CCR Sections 20690 and 20700, respectively.
(iv) Annually receive documentation that the POTW receives vehicle- transported solid waste that is an anaerobically digestible material for the purpose of anaerobic co-digestion with POTW treatment plant wastewater to demonstrate that the POTW meets the requirement of 14 CCR Section
18993.1(h)(2).
(v) City shall submit these records to the Recordkeeping Designee on a schedule to be determined by Recordkeeping Designee, which shall be no less than annually after receipt of notification from the POTW.

3. Electricity Procured from Biomass Conversion. For Electricity Procured from Biomass Conversion, City shall:
a. Procure electricity from a biomass conversion facility that receives feedstock from a composting facility, transfer/processing facility, a solid waste landfill, and/or receives feedstock from the generator or employees on behalf of the generator of the Organic Waste and to the degree that it is available and practicable for the City and to help meet the Annual Recovered Organic Waste Product Procurement Target, which requires compliance with criteria specified in 14 CCR Section 18993.1.
b. Maintain records and conduct the following recordkeeping activities:
(i) Keep records in the same manner indicated in Section (B)(1)(c) of this Policy for the amount of Electricity Procured from Biomass Conversion facilities, including the general
procurement record information specified in this Policy. (ii) Receive written notification by an authorized representative of the biomass conversion facility certifying that biomass feedstock was received from a permitted solid waste facility identified in 14 CCR Section 18993.1(i).
(iii) Provide these records to the Recordkeeping Designee.

13.3.3 Requirements for Direct Service Providers

1. Direct Service Providers of landscaping maintenance, renovation, and

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Packet Pg. 316 Attachment: Attachment 5 - Exhibit A - Purchasing Policy (6241 : FY 2026-27 Budget Adoption) Administrative Policy No. 76 p. 26
construction shall:
a. Use eligible Compost and SB 1383 Eligible Mulch produced from recovered Organic Waste for landscaping, maintenance,
renovation, or construction, as practicable, whenever available, and capable of meeting quality standards and criteria specified. SB 1383 Eligible Mulch used for land application must meet or exceed the physical contamination, maximum metal concentration and pathogen density standards specified in 14 CCR Section
17852(a)(24.5)(A)(1) through (3).
b. If Direct Service Provider is subject to the City’s WELO pursuant to Chapter 8-7 of the Pacifica Municipal Code, comply with one of the following, whichever is more stringent: (i) Chapter 8-7 is more stringent than the State’s MWELO, or (ii) Sections 492.6 (a)(3)(B), (C), (D), and (G) of the State’s MWELO, Title 23, Division 2, Chapter

2.7 of the CCR, as amended September 15, 2015, which requires the submittal of a landscape design plan with a “Soil Preparation, Mulch, and Amendments Section” to include the following:
(i) For landscape installations, Compost at a rate of a minimum of 4 cubic yards per 1,000 square feet of permeable area shall be incorporated to a depth of six (6) inches into the soil. Soils with greater than six percent (6%) organic matter in the top six (6) inches of soil are exempt from adding Compost and tilling. (ii) Apply a minimum three- (3-) inch layer of mulch on all exposed soil surfaces of planting areas except in turf areas, creeping or rooting groundcovers, or direct seeding applications where mulch is contraindicated. To provide habitat for beneficial insects and other wildlife, leave up to five percent (5%) of the landscape area without mulch. Designated insect habitat must be included in the landscape design plan as such.
(iii) Procure organic mulch materials made from recycled or postconsumer materials rather than inorganic materials or virgin forest products unless the recycled post-consumer organic products are not locally available. Organic mulches are not required where prohibited by local Fuel Modification Plan Guidelines or other applicable local ordinances.
(iv) For all mulch that is land applied, procure SB 1383 Eligible Mulch that meets or exceeds the physical contamination, maximum metal concentration, and pathogen density standards for land applications specified in 14 CCR Section
17852(a)(24.5)(A)(1) through (3).
c. Keep and provide records of Procurement of Recovered Organic Waste Products (either through purchase or acquisition) to Recordkeeping Designee, on a schedule to be determined by Recordkeeping Designee. Information to be provided shall include:

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(i) General description of how and where the product was used and if applicable, applied;
(ii) Source of product, including name, physical location, and contact information for each entity, operation, or facility from whom the Recovered Organic Waste Products were procured; (iii) Type of product;
(iv) Quantity of each product; and,
(v) Invoice or other record demonstrating purchase or
procurement.

2. Renewable Gas procurement by Direct Service Providers a. Subject to force majeure events that are beyond their control (such as the interruption of third-party supplies or facility shutdowns that are not their fault), Direct Service Providers transporting solid waste, organic materials, and/or recyclable materials shall procure at least seventy-five percent (75%) of their fuel as Renewable Gas and will be required to do so in all RFPs and RFQs released by the City for such services unless they are already required to do so by permit, license, written agreement, or written contract with the City. b. Departments releasing RFPs and RFQs for contractors that procure fuel in the course of their services to the City shall include a ten percent (10%) price preference to contractors that propose to use the amount or percentage of Renewable Gas specified in the RFP or RFQ to be eligible for said price preference. Such use, if it occurs, shall be documented in a written contract or agreement. c. If Renewable Gas made from recovered Organic Waste is used by Direct Service Providers, Direct Service Providers shall submit information listed below on a schedule to be determined by Jurisdiction, but not less than annually to the Recordkeeping Designee.
(i) Dates Provided
(ii) Source of product including name, physical location and contact information for each entity, operation, or facility from whom the Recovered Organic Waste Products were procured;
(iii) Type of product;
(iv) Quantity provided; and,
(v) Invoice or other record or documentation demonstrating purchase, procurement, or transfer of material to giveaway location.

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d. Renewable Gas used by Direct Service Providers under Section (C)(2)(a) and 2(b) of this Policy shall comply with criteria specified in 14 CCR Section 18993.1.

13.4 Recycled-Content Paper Procurement

13.4.1 Requirements for City Departments

1. If fitness and quality of Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper are equal to that of nonrecycled items, all departments and divisions of City shall purchase Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber, whenever the total cost is the same or a lesser total cost than non-recycled items or whenever the total cost is no more than ten to twenty percent (10-20%) of the total cost for the non-recycled items, consistent with the requirements of this Policy, Public Contract Code, Sections 22150 through 22154 and Sections 12200 and 12209, as amended.

2. All Paper Products and Printing and Writing Paper shall be eligible to be labeled with an unqualified recyclable label as defined in Title 16 Code of Federal Regulations Section 260.12 (2013).

3. Provide records to the Recordkeeping Designee of all Paper Products and Printing and Writing Paper purchases on a schedule to be determined by Recordkeeping Designee (both recycled-content and non-recycled content, if any is purchased) made by a division or department or employee of the City. Records shall include a copy of the invoice or other documentation of purchase, written certifications as required in Section (B)(1)(c) and (d) of this Policy for recycledcontent purchases, vendor name, purchaser name, quantity purchased, date purchased, and recycled content (including products that contain none), and if non-Recycled-Content Paper Products and/or non-Recycled-Content Printing and Writing Paper are provided, include a description of why Recycled-Content Paper Products and/or Recycled-Content Printing and Writing Paper were not provided.

13.4.2 Requirements for Vendors

1. All vendors that provide Paper Products (including janitorial Paper Products) and Printing and Writing Paper to City shall:
a. Provide Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber, if fitness and quality are equal to that of non-recycled item, and available at equal or lesser price or available at no more than ten to twenty percent (10-20%) of the total cost for non-recycled Paper Products, consistent with the requirements of this Policy and Article 7 of Title 6 of the Pacifica

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Municipal Code
b. Only provide Paper Products and Printing and Writing Papers that meet Federal Trade Commission Recyclability standard as defined in Title 16 Code of Federal Regulations Section 260.12 (2013). c. Certify in writing, under penalty of perjury, the minimum percentage of postconsumer material in the Paper Products and Printing and Writing Paper offered or sold to the City. This certification requirement may be waived if the percentage of postconsumer material in the Paper Products, Printing and Writing Paper, or both can be verified by a product label, catalog, invoice, or a manufacturer or vendor internet website.
d. Certify in writing, under penalty of perjury, that the Paper Products and Printing and Writing Paper offered or sold to the City is eligible to be labeled with an unqualified recyclable label as defined in Title 16 Code of Federal Regulations Section 260.12 (2013).
e. Provide records to the Recordkeeping Designee of all Paper Products and Printing and Writing Paper purchased from the vendor on a schedule to be determined by Recordkeeping Designee (both recycled-content and non-recycled content, if any is purchased) made by a division or department or employee of the City. Records shall include a copy of the invoice or other documentation of purchase, written certifications as required in Section (B)(1)(c) and (d) of this Policy for recycled-content purchases, purchaser name, quantity (purchased, date purchased, and recycled content (including products that contain none), and if non-Recycled-Content Paper Products and/or non- Recycled-Content Printing and Writing Paper are provided, include a description of why Recycled-Content Paper Products and/or Recycled-Content Printing and Writing Paper were not provided.

2. All vendors providing printing services to the City via a printing contract or written agreement, shall use Printing and Writing Paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber, or as amended by Public Contract Code Section 12209.

13.5 Recordkeeping Responsibilities

13.5.1 The Recordkeeping Designee shall be responsible for obtaining records pertaining to Procurement of Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper.

13.5.2 The Recordkeeping Designee will do the following to track Procurement of Recovered Organic Waste Products, Recycled-Content Paper Products, and Recycled-Content Printing and Writing Paper:

1. Collect and collate copies of invoices or receipts (paper or electronic)

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or other proof of purchase that describe the procurement of Printing and Writing Paper and Paper Products, including the volume and type of all paper purchases; and, copies of certifications and other required verifications from all departments and/or divisions procuring Paper Products and Printing and Writing Paper (whether or not they contain recycled content) and/or from the vendors providing Printing and Writing Paper and Paper Products. These records must be kept as part of City’s documentation of its compliance with 14 CCR Section 18993.3.

2. Collect and collate copies of invoices or receipts or documentation evidencing procurement from all departments and divisions procuring Recovered Organic Waste Products and invoices or similar records from vendors/contractors/others procuring Recovered Organic Waste Products on behalf of the City to develop evidence of City meeting its Annual Recovered Organic Waste Product Procurement Target.

These records must be kept as part of the City’s documentation of its compliance with 14 CCR Section 18993.1.

3. Collect, collate, and maintain documentation submitted by the City, Direct Service Providers, and/or vendors, including the information reported to the Recordkeeping Designee in accordance with this Policy.

4. Compile an annual report on the City’s direct procurement, and vendor/other procurement on behalf of the City, of Recovered Organic Waste Products, Recycled-Content Paper Products, and RecycledContent Printing and Writing Paper, consistent with the recordkeeping requirements contained in 14 CCR Section 18993.2 for the Annual Recovered Organic Waste Product Procurement Target and 14 CCR Section 18993.4 for Recycled-Content Paper Products and RecycledContent Printing and Writing Paper procurement. This report shall be made available to the City’s responsible entity for compiling the annual report to be submitted to CalRecycle (which will include a description of compliance on many other SB 1383 regulatory requirements) pursuant to 14 CCR Division 7, Chapter 12, Article 13.

The procurement report shall also be shared with the Pacifica City Council annually as evidence of implementing this Policy.

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Packet Pg. 323 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) 540 Crespi Drive
Pacifica, CA 94044
(650) 738-7300
https://www.cityofpacifica.org/

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CITY OF PACIFICA
Fiscal Year 2026-27
Proposed Budget
5 11.i
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CITY OF PACIFICA
ACKNOWLEDGMENTS:

Budget Book Preparation
Yulia Carter, Assistant City Manager
Marisol Gómez, Finance & Administrative Services Director Lucy Xie, Deputy Finance Director
Stephanie Coy, Financial Analyst II
Matt Pressey, Financial Consultant
Special Thanks to:

Pacifica Historical Society for historical background
Steve Johnson and Chris Campos for pictures of Pacifica 6 11.i
Packet Pg. 327 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Table of Contents
Cover and Acknowledgements
Table of Contents
1 7
City Attorney’s Office
Administrative Services
Police Department
152
155
167
EXECUTIVE SUMMARY 9 North County Fire Authority 175
Budget Transmittal Message 11 Community Development 185 Distinguished Budget Presentation Award
Operating Budget Meritorious Award
21 23
Public Works Department
Parks, Beaches & Recreation
195
205
City Council 25
Executive Team 27 OTHER FUNDS 217
City of Pacifica Strategic Plan 29 Enterprise Funds 219 About Pacifica 41 Special Revenue and Capital Funds 225 Community Profile and Map 48 Internal Service Funds 255 Organizational Chart 51 Debt Service Funds 265
Gann Appropriations Limit Resolution 52
FY2026-27 Budget Resolution 55 PERSONNEL SUMMARIES 269
Employee Compensation and Benefits
BUDGET OVERVIEW 59 Summary 271
Basis of Budget Preparation and Master Position Control 273 Overview 61 FY 2026-27 Salary Schedules 275
Fund Balance Summary 88
CAPITAL IMPROVEMENT PROGRAM 279
GENERAL FUND 89 Capital Improvement Program Summary 269 General Fund Overview 91 Proposed FY 2026-27 Capital Projects 284 General Fund Revenues by Type 99
General Fund Expenditures by Type 100 SUPPLEMENTAL INFORMATION 285 General Fund Summary 101 Long Term Debt 287
Financial Forecast and Assumptions 102 Unfunded Pension and OPEB Liability General Fund Revenues by Department
General Fund Expenditures by
Department

DEPARTMENT WORK PROGRAMS
106
107
109
Funding Strategy
Fund Balance Commitment Policy
Investment Policy
Purchasing Policy
Citywide Fee Schedule
291
293
297
321
359
Department Work Programs Summary
FY2025-2026 Work Plan
City Council
111
113
133
Glossary & Acronyms 400
City Manager’s Office 137

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CITY OF PACIFICA
Executive Summary
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CITY OF PACIFICA
170 Santa Maria Avenue • Pacifica, California 94044-3422 www.cityofpacifica.org
MAYOR
Christine Boles
Vice Mayor
Greg Wright

COUNCIL
Mary Bier
Mayra Espinosa
Sue Beckmeyer
Scenic Pacifica
Incorporated Nov. 22, 1957
June 22, 2026
Honorable City Council, City of Pacifica
Subject: Fiscal Year 2026-27 Proposed Budget
Honorable Mayor, Vice Mayor, and Members of the City Council, On behalf of City staff, I am pleased to present for your consideration the Recommended Budget for Fiscal Year 2026-27, which is balanced and is being presented for the Council’s consideration of formal adoption at the City Council meeting of June 22, 2026. This transmittal memo provides an overview of the Adopted Budget and the fiscal realities that shaped the policy decisions incorporated within. While this budget maintains critical services for the coming year, it does so through difficult choices and marks an important point in Pacifica's ongoing journey toward longterm fiscal sustainability.

INTRODUCTION: FACING PACIFICA’S FINANCIAL & OPERATIONAL REALITIES This Adopted Budget reflects one of the most challenging budget cycles the City has faced in recent history. While the FY 2026-27 Budget maintains core services for the coming year, it does so through difficult decisions, expenditure and service reductions, hiring freezes, and the deferral of organizational needs that have accumulated over many years. The FY 2026-27 budget includes approximately $2.8 million in expenditure reductions, service adjustments, and organizational efficiencies implemented to align expenditures with available resources.

The City continues to face a persistent structural imbalance between ongoing revenues and the cost of providing the level of services expected by the community. Pacifica is proud to remain a full-service city, directly providing a broad range of services including police and fire services, recreation programming and childcare services, public works operations, including wastewater collection and treatment, planning and building functions, and administrative support. However, maintaining delivery of these services has become increasingly difficult as operating costs, infrastructure obligations, regulatory requirements, and community expectations continue to outpace revenue growth.

This Adopted Budget sustains critical services for the community for Fiscal Year 2026-27 while continuing the work necessary to move Pacifica toward long-term fiscal sustainability. Unlike prior years, however, the difficult choices reflected in this budget underscore that Pacifica can no longer rely solely on incremental efficiencies, vacancies, and one-time solutions to bridge the gap between ongoing revenues and expenditures. The City has now reached a point where balancing the budget requires real tradeoffs affecting organizational capacity and service delivery.

The path toward long-term sustainability must include thoughtful commercial, housing, and mixed11

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use development that expands Pacifica’s tax base through increased property, sales, and transient occupancy tax revenues. Expanding hotel capacity to meet coastal hospitality demand, supporting local businesses, and pursuing other revenue-generating opportunities will be essential if Pacifica wants to achieve, and operationally sustain, the level of service delivery desired by the community. Such a path also requires continued progress toward the City Council's housing, climate resilience, and infrastructure goals articulated in the 2023-2030 Strategic Plan.

Over recent decades, the City has decreased and contained its expenditures to the maximum extent feasible while still maintaining reasonable service levels. Staff have continually pursued efficiencies, managed vacancies, leveraged grant funding, delayed expenditures, and restructured operations to preserve services. However, low staffing and compensation levels are an increasing threat to organizational sustainability. Revenue improvements in recent years, such as the successful voter-approved Measure Y half-cent Transactions and Use (Sales) Tax in 2022, and Measure M’s 3% increase in 2024 to the Transient Occupancy Tax, have helped maintain existing levels of service. However, without continuing and significant increases in sustainable revenues, maintaining the organization and current service delivery is at risk.

Future budgets may require increasingly difficult choices regarding service levels, organizational structure, partnerships, and how services are delivered. While Pacifica remains committed to preserving the qualities that define this community, it is important to acknowledge that the traditional full-service municipal model cannot be sustained indefinitely if expenditures continue to outpace recurring revenues.

As discussed throughout the City's budget and revenue generation study sessions, achieving the community's long-term goals and aspirations will require a thoughtful and balanced approach to strengthening Pacifica's financial foundation. The City continues to face both significant infrastructure needs and an ongoing gap between existing revenues and the resources necessary to sustain desired service levels over time.

No single strategy will resolve these challenges. Long-term fiscal sustainability will require continued evaluation of opportunities to responsibly expand the City's revenue base, support local businesses and economic vitality, pursue grants and partnerships, invest strategically in infrastructure, and consider future policy options consistent with community values and the City Council's Strategic Plan.

Equally important, the community will need to engage in an ongoing conversation about priorities and expectations. Pacifica's Strategic Plan reflects aspirations to enhance services, address infrastructure needs, advance climate resilience, expand housing opportunities, and strengthen community connections. Achieving those aspirations will require aligning the services the community desires with the resources available to sustain them over the long term.

The difficult choices reflected in this year's budget demonstrate that this conversation is no longer theoretical. While the actions taken in FY 2026-27 preserve critical services and provide shortterm stability, they also underscore the importance of continuing to proactively identify sustainable solutions that will enable Pacifica to remain resilient, responsive, and fiscally sound for future generations.

The Pacifica City Council, in representing the Pacifica community’s desires as a whole, has set a vision to see Pacifica progress on a course of enhanced services to deliver the aspirational initiatives identified in its 2023-2030 Strategic Plan. 12 11.i
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This Strategic Plan, which was updated and re-adopted by City Council on April 13, 2026, includes the following Mission, Vision, Values, Goals, and Strategies:

Mission Statement
(What the City does and strives to do on an on-going basis) The City of Pacifica provides exceptional services,
maintains the small-town feel and safety of its unique community, and stewards its environment, coastal beauty, and recreational opportunities.

Vision Statement
(What the City is aspiring to become)
Pacifica strives to be an inclusive and sustainable community:
environmentally, economically, socially, and holistically.

Values
(How the City does its work)
Collaborative Teamwork
Healthy Workplace
Heartfelt Service
Resource Stewardship
Transparency and Responsiveness
Visionary Planning
Goals
(How the City will achieve its Vision)
&
Strategies
(City Council’s initial priorities to ensure progress on achieving the Strategic Plan, while recognizing the ongoing services, management and non-discretionary work that consume most City resources)
Goal #1: Enhance organizational and fiscal stability.

A. Improve staff retention, recruitment, mental health and wellness resources, and increase staffing for rising workloads.

B. Pursue possible tax, bond, and other revenue opportunities, including tobacco and cannabis licensing.

C. Implement the Economic Development Workplan.

D. Prepare the Cost Allocation Plan and conduct the Development Impact Fee and Master Fee Studies, and consider provision of in-house building official and plan check services.

E. Increase public education about the City’s organizational capacity and fiscal needs.

Goal #2: Improve and steward City infrastructure, streets and facilities.

A. Complete selected stormwater and flooding improvements citywide B. Advance the Beach Boulevard Resiliency Project, Esplanade Protection, and the Pier.

C. Complete the Facilities Assessment Study.

Goal #3: Prioritize protection and development of affordable housing.

A. Identify and advance viable affordable housing projects.

B. Fully implement the Short-Term Rental Ordinance.

C. Prioritize Housing Element program implementation and interim housing solutions.

Goal #4: Pursue climate change adaptation and mitigation.

A. Begin implementation of the Climate Action and Adaptation Plan. 13 11.i
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B. Adopt a 25% urban forest canopy goal, complete the urban forestry plan and inventory, and prioritize revising ambiguous language related to tree health. .

C. Begin implementation of Pacifica’s Local Coastal Plan and continue collaborations with the California Coastal Commission.

Goal #5: Broaden public communications and collaboration.

A. Creatively engage community expertise, advocates, and volunteers to advance City priorities.

B. Increase communications, education, and connections for community wellness resources.

C. Broaden community awareness of the Library projects
D. Improve coordination and collaboration between the City Council and local and regional commissions, boards and committees
The remainder of this Adopted Budget transmittal memo is organized as follows:
o Budget Development Process;
o Budget Development Strategies;
o Adopted Budget Overview;
o Conclusion & Longer-term Challenges;
o Acknowledgments.

BUDGET DEVELOPMENT PROCESS
Preparation of this budget began with the Council Strategic Planning Workshop on March 7, 2026, along with the Long-Term Financial Outlook. The mid-year FY 2025-26 budget adjustments brought to City Council on March 9, 2026, reflecting a more accurate picture of revenue and expenditure status in advance of the FY 2026-27 budget development process. On April 13, 2026, staff presented, as Budget Session #1, preliminary budget strategies to the Council, budget planning process, methodology, and timeline. Council also adopted its Strategic Plan Update on April 13, 2026, which is included in this section of the budget book. Budget Session #2 occurred on May 11, 2026, and included Council review of the FY 2026-27 Base Budget, and the recommended Capital Improvement Program.
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The budget development process continued into June, including:

June 1: Planning Commission review of the Proposed FY 2026-31 Capital Improvement Plan for Conformity with the General Plan;
June 8: Budget Session 3: Review of FY 2026-27 Proposed Budget Recommendations, CIP and Workplan;
June 22: Operating Budget, CIP Budget, Citywide Fee Schedule Adoption, and Policies

BUDGET DEVELOPMENT STRATEGIES
During the April 13, 2026, Budget Session, the City Council discussed and provided direction regarding three specific budget strategies recommended by the City Manager to guide the development of the budget, aligned to the City Council’s Strategic Plan. These strategies are listed below, along with a brief summary of how each strategy is implemented in the Proposed Budget.

Budget Strategy #1: Continue Allocation of Excess Educational Revenue Augmentation Funding for these revenues to stay in the General Fund.

Relates to Council Goal #1: Enhance organizational and fiscal stability.

Implementation in the Budget: Several staff-augmentation actions are included in the Proposed Budget to help deliver projects and services effectively.

Budget Strategy #2: Addressing financial uncertainties concerning the Vehicle License Fee In-lieu payments from the state.

Relates to Council Goal #1: Enhance organizational and fiscal stability.

Implementation in the Budget: As of now, the County’s FY 2024-25 VLF shortfall is NOT in the 2026-27 State budget. If the Governor does not change course, then the City’s Manager’s original recommendation to utilize reserve funding to cover the $1.06 million shortfall for Pacifica will be necessary.

Budget Strategy #3: Prioritize Revenue-Generating Development to Strengthen the City's Long-Term Financial Base.

Relates to Council Goal #1: Enhance organizational and fiscal stability and to Council Goal #3: Prioritize protection and development of affordable housing.

Implementation in the Budget: Despite significant fiscal constraints, the Recommended Budget preserves targeted investments
intended to advance the City's Economic Development Work Plan and strengthen Pacifica's long-term financial sustainability. These 15 11.i
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efforts include continuing implementation of the Economic Development Strategic Goals, supporting strategic redevelopment opportunities, advancing redevelopment efforts at 2212 Beach Boulevard, and maintaining professional services necessary to support Housing Element implementation and other initiatives that contribute to the City's long-term economic resilience.

These investments reflect the recognition that Pacifica's long-term fiscal challenges cannot be addressed through expenditure reductions alone. Sustaining community services, addressing infrastructure needs, and achieving the aspirations reflected in the City's Strategic Plan will require continued focus on economic vitality, responsible development and redevelopment, revenue diversification, and other strategies that strengthen the City's financial foundation over time.

Budget Strategy #4: Complete the Citywide Cost Allocation Plan (CAP) to establish fully burdened service costs, improve transparency in how administrative and overhead costs are allocated across departments, and support more accurate cost recovery and long-term fiscal sustainability.

Relates to Council Goal #1: Enhance organizational and fiscal stability.

Implementation in the Budget: The allocation methodology has been updated with new data and reflects a more accurate inclusion of overhead, and distributed amongst the allocable departments and funds.

Budget Strategy #5: Update the City’s Development Impact Fees and User Fee Schedule to better align fees with the actual cost of services and growth-related impacts, while providing the City Council with policy options related to cost recovery levels and General Fund subsidies.

Relates to Council Goal #1: Enhance organizational and fiscal stability.

Implementation in the Budget: The fee studies are both underway at this time. The FY 2026-27 proposed budget has a modest revenue increase across charges for services. Staff will bring back to Council staff recommendations for fee increases.

BUDGET OVERVIEW
While it is always difficult to predict revenues and expenditures for the future, this Adopted Budget has been prepared with staff’s best estimates at this time about anticipated revenues and expenditures for the upcoming year. This Adopted Budget also continues the City’s tradition of financial transparency, pursuing cost recovery, and budgeting prudence. This Adopted Budget 16 11.i
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provides clarity and understanding of the City’s financial plan for FY 2026-27 in an easy-to-read format.

A detailed “Basis of Budget Preparation and Budget Overview” is provided in the Recommended Budget Book on pp - . That Overview provides details about budget revenue and expenditure assumptions, projected fund balance structure and budgetary reserves for all funds, and the specifics of additional programs included in the General Fund budget. In addition, the FY 2026-2031 Capital Improvement Program is provided as Attachment 7.

For purposes of this Transmittal Memo, the following charts are provided to show at a highly aggregated level the amounts and sources of General Fund Revenues, and the apportionment of Expenditures.

City of Pacifica
FY 2026-27 Adopted Budget
General Fund Revenue By Type
Total GF Revenue: $53,889,322
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City of Pacifica
FY 2026-27 Adopted Budget
General Fund Expenditure by Type
Total of General Fund Departments: $55,504,839

CONCLUSION & LONGER-TERM CHALLENGES
The adopted Budget for FY 2026-27 is balanced, transparent, accountable, and fiscally prudent. It represents a significant milestone in Pacifica's ongoing effort to achieve long-term fiscal sustainability. While the budget is balanced and preserves many of the services residents value, it also reflects some of the most difficult decisions the City has faced in recent years. For the first time in many years, the City was required to implement significant and painful service reductions and organizational changes in order to align expenditures with available resources.

This budget cycle marked an important turning point in the City's ongoing efforts to achieve long-term fiscal sustainability. As part of the budget development process, departments were asked to conduct a comprehensive review of programs, services, and activities and evaluate them based on legal requirements, operational necessity, community value, and alignment with the City Council's Strategic Plan. Services were categorized as mandated, core, or enhancement-level services to help inform difficult resource allocation decisions and establish a more sustainable framework for future budget discussions.

This exercise required thoughtful examination of longstanding programs, service delivery models, and organizational priorities. More importantly, it reinforced the reality that the City's aspirations, service expectations, and growing responsibilities must ultimately be aligned with available resources. While Pacifica remains committed to delivering high-quality services, sustaining and enhancing those services over time will require either meaningful growth in ongoing revenues, a recalibration of community expectations, or some combination of both.

Through the Pacifica Discussion initiative, the City Council and community will have 18 11.i
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opportunities to continue important conversations regarding service priorities, community expectations, and the resources necessary to sustain them.

Recent adoption of the Comprehensive General Plan Update, Local Coastal Land Use Plan Update, Housing Element, and Sharp Park Specific Plan provide a clear framework for thoughtful growth, economic vitality, infrastructure investment, and long-term community resilience.

At the same time, the difficult choices reflected in this budget demonstrate that future fiscal sustainability will require meaningful growth in sustainable revenues. Continued focus on economic development, responsible development and redevelopment, fee modernization, grants, partnerships, and other revenue enhancement opportunities will be critical. Absent such progress, future service reductions and organizational impacts will become increasingly difficult to avoid.

City staff remains committed to working collaboratively with the City Council, residents, businesses, and community partners to confront these challenges with transparency, professionalism, and fiscal responsibility. While the choices ahead will not always be easy, Pacifica is well-positioned to shape its future through thoughtful planning, community engagement, and a shared commitment to preserving the qualities that make Pacifica a unique and desirable place to live, work, and visit.

ACKNOWLEDGMENTS
Preparation of the FY 2026-27 Adopted Budget was a significant team effort by numerous staff. I appreciate everyone’s energy, focus, and teamwork. With deep gratitude for excellent work, I would like to first recognize Assistant City Manager Yulia Carter, Director of Finance and Administrative Services Marisol Gómez, Deputy Finance Director Lucy Xie, Senior Accountant Spencer Tseng, Financial Analyst II Stephanie Coy, and Financial Consultant Matt Pressey. I also want to thank and acknowledge the efforts of all the Departments in developing their departmental budget submittals – Police Chief Maria Sarasua, Police Captains Bill Glasgo and Vince Romero; Community Development Director Samantha Updegrave, and Deputy Community Development Director Michael Christensen; Parks, Beaches and Recreation Director Scott Leslie, Recreation Manager Stephanie Douglas, Child Care Supervisors Tracy Gilbert and Mindy Tiet, Senior Services Supervisor Amber Shong, and Recreation/Aquatics Supervisor Anthony Schriver; Public Works Director Melissa Tigbao, Deputy Director Roland Yip and Interim Directors Dan Patten and Desmond Barca; Deputy Fire Chiefs Todd Johnson, Joel Abelson, Craig Wittner and Nick Gracia, and Supervising Administrative Analyst Elizabeth Solis. I would also like to recognize the other members of the Executive Team -- City Clerk Sarah Coffey, Deputy City Clerk Emily La, City Attorney Michelle Marchetta Kenyon, and Assistant City Attorney Denise Bazzano for their roles in helping deliver this Adopted Budget.

Finally, I would like to thank each of the City Council members for their focus, scrutiny, and decision-making throughout their review of the various iterations of this budget – Mayor Christine Boles, Vice Mayor Greg Wright, and Councilmembers Mary Bier, Mayra Espinosa, and Sue Beckmeyer.

Sincerely,
Sean Charpentier
City Manager
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PRESENTED TO
City of Pacifica
California
For the Fiscal Year Beginning
July 01, 2025
Executive Director

GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished
Budget Presentation
Award
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CITY OF PACIFICA
City Council
Mayor
Christine Boles
Vice Mayor

Greg Wright
Council Members Sue Beckmeyer Mayra Espinosa Mary Bier
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CITY OF PACIFICA
Executive Team
Sean Charpentier
City Manager
Maria Sarasua
Police Chief
Scott Leslie
Parks, Beaches, and
Recreation Director
Michelle M. Kenyon
City Attorney
Vacant
North County Fire Chief
Samantha Updegrave
Community Development
Director
Sarah Coffey
City Clerk
Yulia Carter
Assistant City Manager
Melissa Tigbao
Public Works Director
Marisol Gomez
Administrative Services
Director
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Packet Pg. 349 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) STRATEGIC PLAN - 2023 TO 2030
(adopted on May 8, 2023; updated on May 13, 2024, April 14, 2025 and May 11, 2026) MISSION - What Do We Do?
- VISION - What Are We Becoming?
VALUES - How Do We Approach Our Work?
We are committed to:

A
cy GOALS - How Will We Achieve Our Vision?
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GOALS AND STRATEGIES
– 2023 to 2030
(adopted on May 8, 2023; updated on May 13, 2024, April 14, 2025 and May 11, 2026) The Strategies listed under each Goal below are the City Council’s priorities to ensure progress on achieving the Strategic Plan while recognizing the ongoing services, management and
non-discretionary work that consume most City resources.

1. - 2.

Project, , and the Pier
Referral of park bathroom need to CIP, Parks or Facilities Studies, and/or WorkPlan

3. the Shortn and

4. continue
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Packet Pg. 361 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) About Pacifica
Location:

The City of Pacifica is located along a six–mile stretch of coastal beaches and forested hills in north-central California. The City compromises several small valleys spread between Sweeny Ridge in the east, Montara to the south, and the Pacific Ocean's rocky bluffs to the west. It is located approximately 15 miles south of San Francisco and an easy 40-minute drive from almost anywhere in the Bay Area within the western portion of San Mateo County. Pacifica's climate is usually mild throughout the year.

Featuring some of the most beautiful coastlines in California, visitors of Pacifica will enjoy miles of sandy beaches, hiking trails along the coastline and mountain ridges, and many local shops and restaurants.

History:

Pacifica received its current name in 1957, which means "Peaceful." Its name came about from a contest held in 1957 to find a name for a newly incorporated coastal city.

In 1769, Portola Expedition from Spain encountered
people living in the village of Pruristac in what is now present-day Linda Mar. The Spanish named these
people Coastoans. However, the actual name of the
tribe was Ohlone, who had occupied Pacifica for
thousands of years prior. The Portola Expedition had
overshot their quest for Monterey and, over the next
several days, hiked to the top of Sweeny Ridge, where
they became the first Europeans to sight the San
Francisco Bay.

By 1800, the Ohlone Village of Pruristac was annihilated from diseases (possibly measles) carried by white
missionaries.
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Packet Pg. 362 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) In 1839, Don Francisco Sanchez, a politician, military officer, and ranchero, was granted two leagues of land (approximately the size of the present-day City of Pacifica) by the governor of Alta California. He built a home on his property which is now known as Sanchez Adobe.

As the 1800s passed, the character of the area
became established by the diversity of multiple
cultures that made up the Coastside, a prime
example of the American melting pot.

In 1906, the Ocean Shore Railway began
construction along the shoreline. Construction of the
Railway spanning from San Francisco to Tunitas
Glen, just south of Pacifica, was completed in 1907.

Due to financial problems and the increasing
popularity of the horseless carriage, the railroad
ceased operation in 1920.

During The Prohibition Era (1920-1933), Doctor Galen Hickok bought Sam's Castle, a large castle remote from his offices in San Francisco, to use as a rehabilitation center for his abortion patients (an illegal practice).

During WWII (1939-1945) the Devil's Slide Bunker was built. When in service, a watcher equipped with a set of binoculars would keep watch out at sea and if they spotted simply radioed a massive six-inch gun not far away, which would sink them before they got close.

With the advent of more modern missile defenses, the station became obsolete, and the entire site was abandoned in 1949, leaving an empty bunker atop Devil's Slide.

In 1957, Pacifica was incorporated,
consolidating the nine small communities of
Fairmont, Westview, Pacific Manor, Sharp
Park, Fairway Park, Vallemar, Rockaway
Beach, Linda Mar, and Pedro Point. It has
many reminders of its early beginnings in the
1800s. The City's location on the coast
attracts fishermen, farmers, and many other
industries. The town developed a rich and
unique community comprised of various
backgrounds and ethnicities.
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Packet Pg. 363 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Government Structure:

The City of Pacifica operates under a Council-Manager form of government and is governed by a five-member elected City Council. The City Council appoints a City Manager who is responsible for the oversight of daily operations and provides leadership for the City's programs.

By means of its own employees and through other
shared or contract services, the City of Pacifica
provides a variety of municipal services to its
citizens, including law enforcement; library,
disaster preparedness, recreation programs;
maintenance of beaches, streets, parks and
buildings; sanitary sewer utility collection and
maintenance, planning, zoning and building
inspection, storm drain maintenance, code and
parking enforcement, engineering and general
administrative services.

The members of the City Council serve as the policymaking body. City voters elect five Council members to staggered four-year terms.

The City Council meets regularly on the second and
fourth Monday of each month at 6:00 p.m., and may call
additional special meetings. All meetings of the City
Council, Planning and Recreation Commissions, and any
other committees are open to the public except when
certain personnel matters and legal items are discussed.

Most City offices are open from 8:30 a.m. to 5:00 p.m., Monday through Friday, except on holidays.

City of Pacifica Main Line (650) 738-7300 170 Santa Maria Ave City Manager's Office (650) 738-7409 170 Santa Maria Ave City Clerk's Office (650) 738-7307 170 Santa Maria Ave
Administrative Services (650) 738-7300 170 Santa Maria Ave Finance (650) 738-7392 170 Santa Maria Ave
Recreation Services (650) 738-7387 540 Crespi Drive
Economic Development (650) 738-7301 170 Santa Maria Ave Public Works (650) 738-3767 700 Pacific Coast Hwy
Community Development (650) 738-7341 1800 Francisco Blvd Public Safety (Business Line) (650) 738-7314 2075 Coast Hwy Additional information about city services is available on the City of Pacifica's website at www.cityofpacifica.org
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Packet Pg. 364 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Population:

There is a rich culture of diverse traditions and multi-generational families who have lived in Pacifica for well over 100 years. The City population is about 37,073. There are approximately 14,847 households and 9,504 families (68.3% of households).

Culture, Recreation & Local Attractions:

The City and Coastside are thriving fishing and
tourism destinations. The local and growing organic
agriculture community hosts a Wednesday farmers
market, while the Pacifica Pier is the only pier in the Bay Area where you can crab or fish for free. The
crabbing season begins in November and lasts
throughout July. The Coastal Trail runs for miles
along beaches and bluff tops where individuals
whale watch, bike, or hike. Golf can be enjoyed at
the Sharp Park Golf course with specular backdrops.

The natural beauty that makes up Pacifica is
appreciated by visitors and residents alike. Each
year, The Fog Fest, a festival to celebrate the community and raise funds for local community groups, draws in over 40,000 visitors over a two–day period.

Besides the sandy beaches and rugged cliffs along
the ocean, Pacifica is also home to residential
communities where architecture is enhanced by
colorful yards and gardens. Visitors can stroll around
town to discover unique wares in local shops, markets
and boutiques. Music, tastings, acting classes, and
other entertainment are held at parks, shops,
wineries, and eateries. First-class dining can be found at restaurants, bakeries, taquerias, delis, and coffee
shops. Menus include fresh fish straight off the boat
and ethnic offerings from around the world.

The City also boasts seven unique lodgings with over
300 available rooms. These guests generate over $2.75 million in transient occupancy tax and contribute to $3.2 million in sales tax for the community each year. 44 11.i
Packet Pg. 365 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Fun Facts:

The boundary of the City of Pacifica closely
compares with the limits of the San Pedro
land grant, a gift of the Mexican government
to Francisco Sanchez in 1838 in recognition
of his services as military commander and
alcalde (mayor and magistrate) of the City of
Yerba Buena (now San Francisco).

Francisco Sanchez built the Sanchez adobe
in the 1840s as a country home. There he
was famed for his generosity to travelers,
including John C. Fremont, who visited there
during his extensive survey of California.

The City of Pacifica was named not by its Spanish immigrants but through a contest in 1957 that was held to find a name for the newly incorporated coastal City. The winning name, Pacifica, was based on the 80-foot statue by sculptor Ralph Stackpole, which was created as the theme lady for the Golden Gate International Exposition. Two of the sculptor's working models have been saved.

One is over the front stairs at City Hall, and the other sits in the City Council Chambers.

The thousand-plus acres that make up San Pedro Valley Park was assembled from large parcels leased from the North Coast County Water District and the 21- acre core that was John Gay's Trout Farm until it was destroyed by the 1962 floods.

It is administered by the San Mateo County Parks and Recreation Department.

Sam's Castle - After the 1906 earthquake, Henry Harrison McCloskey—a San Francisco attorney for the Ocean Shore Land Company (and Railroad)— buys a plot of land on the craggy bluffs of what is now the Sharp Park district of Pacifica, California. McCloskey hires architect Charles MacDougal to design an earthquake/fire-proof home to assuage the fears of his wife, Emily McCloskey.

Shortly after moving in, Henry McCloskey dies. In 1916, Dr. Galen Hickok purchased the castle and began using it as a "retreat for girls and women unwilling to become mothers." Dr. Hickock was arrested and sentenced to serve five years at San Quentin State Prison.
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Packet Pg. 366 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Sanchez Adobe is a living history site that was occupied from prehistoric Indian times until it became a historic landmark in 1953. It was an Indian village, a mission farm, a cattle ranch, the home of Francisco Sanchez (alcalde (Mayor) of San Francisco), a residence of General
Kirkpatrick, the Hotel San Pedro, a
speakeasy known as Adobe House,
and an artichoke storage facility. For
many years it was the only provider
of food for Mission Dolores in San
Francisco. The old adobe home on
the site, a fine example of authentic
Monterey architecture, is the oldest
building in San Mateo County.

Established in 1905, the Ocean Shore Railroad Company's tracks started in San Francisco and ran along a coastal route through the small villages that later became Pacifica. It hugged the mountain at Devil's Slide and traveled south through Pacifica. The route ended at Tunitas Creek, south of Pacifica. Most of the Ocean Shore right of way was paved over
and turned into Highway 1, reputed to be
the most spectacular road on the West
Coast. Signs of Pacifica's early railroad
days can be seen along the Rockaway
headlands and along the railway bream in
Pedro Point. The huge cut between
Fairway Park and Vallemar was created
by railroad engineers, and three railroad
stations still stand.

Beginning life in 1910, the Little Brown
Church was Pacifica's first church. It was
built of rough-sawn fir and redwood,
standing just 100 feet from the Ocean
Shore Railroad. Known as the Salada
Beach Presbyterian Church, it served as
a church, community social center,
meeting room, public school, well-baby
clinic, and neighborhood movie house.

Now it is home to the Pacifica Coastside
Museum, where visitors can learn about
Pacifica's unique and colorful history.
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Packet Pg. 367 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Located at Sharp Park Beach, Pacifica
Municipal Pier was opened in November
1973. It was built as a cooperative
development of the City of Pacifica, the
Wildlife Conservation Board, and the
California Department of Fish & Game.

Famous for its salmon runs and winter
Dungeness crabbing, the pier attracts anglers
from around the globe. Other species caught
at the pier are Jack Smelt, White Croaker, and
Striped Bass. The pier, a designated site by The Whale Trail, is one of the best places to watch humpbacks and gray whales lunge feeding, tail slapping, and, if you're lucky, breaching.
*Fun Facts courtesy of Robert Crow and the Pacifica Historical Society 47 11.i
Packet Pg. 368 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) City of Pacifica Community
Profile
The City welcomes those wishing to live, work and play in Pacifica. You will find an inviting and multicultural community atmosphere and friendly and involved people here.

HOTELS, MOTELS, B&B’S
Number of Hotels and Lodging Establishments 7
RV Parks and Campgrounds 1
Hotel Rooms 328
Average Occupancy 73%
Annual Coast Side Visitors (pre-pandemic) 4.2 million

CITY STATISTICS
Population 37,073
Climate Range 47 – 72 °F
Land Area 12.59 Sq Miles
Miles of Streets 188.01 Miles
Miles of Sanitary Sewers 82 Miles
City Parks
Beaches
Sports Fields
Playgrounds
19 4
5 14
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EMPLOYMENT
Number
Employed
% of
Total
Self-Employed 2,239 11%
Private Companies 12,922 63.6%
Governmental Workers 3,431 16.9%
Not for Profit Companies 1,734 8.5%
Median Age 44.6
Total Households 14,847
Average Household Size 2
Median Household Income 160,523
Education – High School Degree or higher 20.8%
Education – Bachelor's Degree or higher 28.5%
Median Housing Value $1,270,815
Percent of Foreign-Born Persons 19.2%
Source: Point2homes.com, "Pacifica Demographics"
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Commission
Open Space &
Parkland
Advisory
Committee
Economic
Development
Committee
Beautification
Advisory
Committee
Library
Advisory
Committee
Emergency
Preparedness &
Safety
Commission
Parks,
Beaches &
Recreation
Commission
Measure Y
Citizens'
Oversight
Committee
City Manager City Attorney
General
Government
Administrative
Services
Community
Development Police Fire Parks, Beaches and Recreation Public Works City Manager's
Office Finance Planning Juvenile Services Emergency Services Recreation Engineering City Clerk Human
Resources Building Investigation Services
Support
Services Senior Services Field Services
Economic
Development
Information
Technology
Code
Enforcement
Narcotics Task
Force
Paramedic
Services Aquatics Waste Water
Risk
Management Records Services Child Care Motorpool
Disaster
Prepardness
Patrol Services
Traffic Safety
Services
Crime Prevention
Communication
Service
Divisions
City Council
Residents of Pacifica
City of Pacifica Organization Chart
Departments
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Packet Pg. 372 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA ESTABLISHING THE APPROPRIATION LIMIT FOR FISCAL YEAR 2026-2027 PURSUANT TO ARTICLE XIIIB OF

THE CALIFORNIA STATE CONSTITUTION
WHEREAS, Proposition 4 was adopted by voters on November 6, 1979, thereby adding Article XIIIB of the California State Constitution, and WHEREAS, it is the desire of the City Council of the City of Pacifica to establish the Appropriation Limit for fiscal year 2026-2027 pursuant to Article XIIB of the California State Constitution.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PACIFICA THAT:

1. the appropriations subject to limitations for the fiscal year 2026-2027 were $49,164,351;

2. the January 1, 2026 factors for the California per capita personal income increased by 4.95% and the population of the County of San Mateo decreased by 0.037%;

3. the Appropriation Limit for the fiscal year 2026-2027 totals $60,871,599; and BE IT FURTHER RESOLVED THAT $60,871,599 is hereby appropriated to “Reserve for General Operations.” The appropriations authorized by the adopted budget shall be chargeable to said account. Any unspent or unencumbered budget appropriations, and any balance of appropriations in the Reserve account shall not be expended without prior authorization from the City Council of the City of Pacifica; and
BE IT FURTHER RESOLVED that any revenues from proceeds of taxes and user fees in excess of costs received during the fiscal year 2026-2027 over and above the appropriated limit of $60,871,599 must be returned to the taxpayers of the City of Pacifica in accordance with the procedure to be adopted by the Council of the City of Pacifica when such amount of refund is determined.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 22nd day of June, 2026, by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

Christine Boles, Mayor
APPROVED AS TO FORM: ATTEST:

Michelle Marchetta Kenyon, City Attorney Sarah Coffey, City Clerk 52 11.i
Packet Pg. 373 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

ANNUAL APPROPRIATION LIMT
FISCAL YEAR 2026-2027
Appropriations Limitation, imposed by Propositions 4 and 111, establishes a formula to restrict the amount of revenues that can be appropriated in any fiscal year. The Limit is based on actual appropriations for base fiscal year 1978-79 and is increased annually using the growth in population and the consumer price index as well as commercial property development within the City during the year. Revenues that are restricted to the limitation are those which are referred to as “proceeds of taxes”, such as sales tax, property tax and business license tax.

The City must adopt an appropriation limit for each fiscal year. Beginning with the fiscal year 1990-1991, the law provides the local agency with an option to calculate the adjustment factors by the following formulas:

Inflation - Either the percentage change in the California per capital income or the percentage change in the local assessment roll from the preceding year due to the addition of local non-residential construction.

Population - Either the City’s own population growth or the population growth of the entire County.

Historically Calculated Appropriations Limits:

Fiscal Year Method Used Limit
2009-2010 CA Income/San Mateo Population 30,462,125
2010-2011 CA Income/San Mateo Population 30,035,741
2011-2012 CA Income/San Mateo Population 31,048,271
2012-2013 CA Income/San Mateo Population 32,534,535
2013-2014 CA Income/San Mateo Population 34,573,086
2014-2015 CA Income/San Mateo Population 34,897,143
2015-2016 CA Income/San Mateo Population 36,592,519
2016-2017 CA Income/San Mateo Population 38,908,408
2017-2018 CA Income/San Mateo Population 40,570,055
2018-2019 CA Income/San Mateo Population 42,269,940
2019-2020 CA Income/San Mateo Population 44,019,916
2020-2021 CA Income/San Mateo Population 45,604,633
2021-2022 CA Income/San Mateo Population 47,856,145
2022-2023 CA Income/San Mateo Population 50,995,869
2023-2024 CA Income/San Mateo Population 53,039,802
2024-2025 CA Income/San Mateo Population 54,470,700
2025-2026 CA Income/San Mateo Population 58,022,039
2026-2027 CA Income/San Mateo Population 60,871,599
Calculations:

Fiscal Year 2026-2027 Limit: $60,871,599 Adjustment Factors:

1. California per capital income change = 4.95%

2. San Mateo County Population change = - 0.0307%
Total Adjustment: 1.04911
53 11.i
Packet Pg. 374 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Step 1 Total all appropriations (2026-2027) operating and capital from general, special and enterprise funds 97,688,220 $
Step 2 Deduct:

1. Non-Proceeds of Taxes 48,363,601 $

2. Exempt Expenditures (Debt Service, Medicare) 177,889 $ Add:

1. Excess user fees which exceed actual costs 17,621 $
Step 3 Equals appropriations subject to limit (Step 1 - Step 2) 49,164,351 $ Step 4 Compare against 2026-2027 Appropriations Limit (from below) 60,871,599 $ Dollar Amount Under Limit (Step 4 - Step 3) 11,707,248 $ Percentage of Limit (Step 3/Step 4) 80.77%
Step 5 Fiscal Year 25-26 Appropriation Limit 58,022,039 $ Fiscal year Growth Factor based on Non-Residential
Step 6 California per capita personal income growth 4.95% 1.0491 and the County Population Change -0.0307%
((4.95+100)/100) x ((-0.0307+100)/100)
Step 7 FY 25-26 Appropriations Limit (Step 5 x Step 6) $ 60,871,599 Step 8 FY 25-26 Appropriations Subject to Limit (from above) 49,164,351 $ Step 9 Dollar Amount Under Limit (Step 7 - Step 8) 11,707,248 $ Step 10 Percentage of Limit (Step 8/Step 7) 80.77%
Step 11 Percentage Under Limit (Step 9/Step 7) 19.23%

APPROPRIATIONS LIMIT CALCULATIONS
FISCAL YEAR 2026-2027

CITY OF PACIFICA
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Packet Pg. 375 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA ADOPTING THE FISCAL YEAR 2026-27 ANNUAL OPERATING AND CAPITAL BUDGET INCLUDING APPROPRIATIONS OF $79,110 FROM THE ROY DAVIES TRUST FUND WHEREAS, the City Council of the City of Pacifica has held public budget study sessions on April 13, 2026, May 11, 2026, and June 8, 2026, and a public hearing on June 22, 2026, for consideration of adoption of the Recommended Fiscal Year 2026-27 Operating and Capital Budget; and
WHEREAS, the recommended budget was prepared in accordance with governmental accounting standards and the financial policies of the City; and WHEREAS, the recommended budget is a balanced expenditure plan that ensures the maintenance of adequate reserves during Fiscal Year 2026-27; and WHEREAS, the City of Pacifica now desires to adopt the Operating and Capital Improvement Program Budgets for Fiscal Year 2026-27; and WHEREAS, expenditures from the Roy Davies Trust Fund are required to be approved by a 4/5 vote of the City Council, and the FY 2026-27 appropriation request includes $79,110 in expenditures from the Roy Davies Trust Fund; and WHEREAS, Sections 65400, 65401, and 65403 of the State Planning and Zoning Code require the Planning Commission to review Public Works capital projects for the next fiscal year to determine conformity with the adopted General Plan. The Planning Commission reviewed and approved the Capital Improvement Program Budget on June 1, 2026; and
WHEREAS, following adoption of the FY 2026–27 Budget, staff will complete the preparation and publication of the final budget document, including any necessary formatting, organizational, editorial, or clarifying revisions; and WHEREAS, such revisions shall be limited to non-substantive changes and shall not modify appropriations, authorized staffing levels, budget authority, or other matters requiring City Council approval;
NOW, THEREFORE, THE CITY COUNCIL HEREBY RESOLVES:

The City Council of the City of Pacifica hereby approves the Fiscal Year 2026-27 Operating and Capital Improvement Program Budgets with the citywide revenues and expenditures as follows:
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Packet Pg. 376 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Section 1. The summary balances shown above represent the Citywide Budget request for Fiscal Year 2026-27. Citywide revenues (including transfers) are budgeted at $109,624,748, and Citywide expenditures (including transfers) are budgeted at $117,251,773.

Section 2. The FY 2026-27 appropriation request includes $79,110 in expenditures from the Roy Davies Trust Fund.
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Packet Pg. 377 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Section 3. The Capital Improvement Program portion of the budget request totals $29.03 million.

Section 4. The Administrative Services Director shall be authorized to make all necessary budgetary and accounting entries.

Section 5. The City Manager shall be authorized to redistribute budgeted appropriations from one department to another or one capital project to another within the same fund. However, any transfers between the funds shall be approved by the City Council.

A copy of the Operating and Capital budgets is on file with the City Clerk and are hereby adopted.

The funds appropriated by this resolution are authorized to be expended as necessary and properly used for municipal purposes.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 22nd day of June 2026.

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

Christine Boles, Mayor
APPROVED AS TO FORM: ATTEST
Michelle Marchetta Kenyon Sarah Coffey
City Attorney City Clerk
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Packet Pg. 378 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) 58 11.i
Packet Pg. 379 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
Budget Overview

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Packet Pg. 380 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

THIS PAGE IS INTENTIONALLY
BLANK
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Packet Pg. 381 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Basis of Budget Preparation and Budget Overview
The City Budget is the result of a thorough, lengthy, and collaborative process involving City Council leadership and City Staff expertise. The City Council sets policy direction for the Budget, and City staff take into consideration economic trends to forecast revenue and create a budget that accomplishes the Council's goals while ensuring the City's financial stability.

Local, County, State, and national economic trends are among the factors considered.

National Outlook and Impact on the City:

According to the June 2026 UCLA Anderson
Forecast, released on June 3, 2026, the national
economy remains resilient but faces increasing
uncertainty due to geopolitical instability and
rising energy prices. The forecast identifies an
oil-price shock associated with conflict in the
Middle East as the leading risk to the U.S.
economy, replacing tariffs as the primary
concern. Higher fuel and energy costs are expected to place upward pressure on inflation and business operating costs, while slowing overall economic growth. Despite these challenges, the forecast does not anticipate a recession and projects continued, albeit moderated, economic expansion.

The UCLA Anderson Forecast projects U.S. gross domestic product (GDP) growth of approximately 2.1 percent in 2026, with inflation expected to peak near 4.5 percent before gradually moderating. The unemployment rate is forecast to rise modestly to approximately

4.5 percent. Elevated energy prices are expected to be the primary driver of inflationary pressures, while continued investment in technology and artificial intelligence is expected to support economic activity and labor productivity.

The Federal Open Market Committee (FOMC) continues to pursue its dual mandate of maximum employment and price stability, with a long-run inflation target of 2 percent. At its 61 11.i
Packet Pg. 382 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) April 29, 2026 meeting, the Committee maintained the target range for the federal funds rate at 3.50 percent to 3.75 percent, citing ongoing inflationary pressures and uncertainty surrounding the economic outlook. The Federal Reserve indicated that future monetary policy decisions will depend on incoming economic data, inflation trends, labor market conditions, and evolving economic risks.

State Outlook and Impact on the City:

California's economy is expected to continue growing
at a moderate pace, although ongoing inflationary
pressures, elevated housing costs, labor shortages in
certain sectors, and economic uncertainty are
expected to constrain growth relative to historical
trends. While the State's economy remains supported
by the technology sector and continued investment in
innovation, higher operating costs and a slower labor
market have tempered overall economic expansion. The State continues to face significant housing supply challenges. Higher construction costs, labor shortages, regulatory requirements, and elevated financing costs continue to limit residential development activity and the pace of new housing production.

Local Economy:

The County's labor market continues to demonstrate resilience, with an unemployment rate of 3.3 percent as of April 2026, significantly below both state and national averages. While economic growth has moderated in recent years and some sectors continue to adjust to changing workplace and market conditions, the County's economy remains comparatively strong.

Budget Developement Process:

City staff prepares an annual operating budget that requires City Council adoption and contains revenues, appropriations, and other financial information pertaining to all City operating and capital budgets. The philosophy employed in creating this Budget has been to focus the City's efforts on continuing to provide quality "core" municipal services in the most efficient way possible.

This operating Budget covers the 2026-27 fiscal year, which runs from July 1, 2026, to June 30, 2027.
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Packet Pg. 383 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Basis of Budgeting:

The City's budgets for Governmental Funds,
such as the General Fund, Debt Service Funds,
Special Revenue Funds, and Capital Project
Funds, are prepared based on the modified
accrual basis of accounting (revenues are
recognized in the accounting period in which they
become available and measurable, and
expenditures are recognized in the accounting
period in which the liability is incurred). The City's
Enterprise Funds and Internal Service Funds shall be prepared on the full accrual basis of accounting for all operating revenues and most operating expenses (revenues are recognized when they are earned, and expenses are recognized when the liability is incurred). Certain expenses for long-term liabilities, such as net-pension liability, are budgeted on the modified accrual basis of accounting. The City's operating budget shall exclude unrealized gains or losses resulting from the change in fair value of investments.

Budget Preparation:

The annual budget cycle begins each year with the development of budget instructions, including policy directives and a budget calendar, in December and is completed with the budget adoption by the City Council in June. Each year the City Council convenes in advance of the new fiscal year to review City Council goals and to develop a list of priorities to be implemented to fulfill those goals. This annual process was intended to identify those Council priorities in advance of developing the next annual budget in order to align the City’s limited financial resources with the Council’s goals and priorities for the next fiscal year and beyond.

Last year the City Council developed and approved a comprehensive Strategic Plan for 2023 to 2030, which is a best practice for high functioning organizations. The Strategic Plan includes a Mission, Vision, Values, and Goals, and then more detailed Strategies for achieving the Goals. The Pacifica Strategic Plan was adopted on May 8, 2023. Following up on the newly adopted Pacifica Strategic Plan, City Council convened on March 7, 2026 to receive an update on the progress of the strategic plan using the City’s AchieveIt software application.

The Work Program lists the specific tasks needed to achieve each of the Council’s adopted Goals and Strategies, as first presented May 2023.

This year's budget cycle launched in the Spring
2026, over the course of three public meetings. In
March 09, 2025, the City Council also completed the
mid-year review of the FY 2025-26 budget. At that
time, Council reviewed revenues and expenditures
adjustments, adopted a resolution authorizing
adjustments to the Fiscal Year 2025-26 Operating
and Capital Budget, and discussed preparation for
the FY 2026-27 Budget process.
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Packet Pg. 384 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) The City Manager and Assistant City Manager provide guidance to departments prior to the preparation of department budgets related to economic outlook and parameters for budgeting.

Budget projections are submitted by
department heads to the Finance
Department. Then, the Assistant City
Manager submits the draft
recommended City budget to the City
Manager for review.

Staff considered Council priorities from
the strategic plan during the budget
development process, and every new
programmatic addition to the Budget
was viewed and presented in light of
Council priorities and strategic goals.

Council held budget study sessions in
May and June to review and discuss
budget options for the FY 2026-27
before finally adopting the Budget on June 22, 2026. The Budget development timeline is presented in the table below:

PUBLIC

MEETING

BUDGET STEP TIME FRAME
1 Council Strategic Planning Workshop: FY2026-27
Strategic Plan Update and Priority Setting
March 7, 2026
2 FY 2025-26 Mid-Year Budget Review to Council March 09, 2026 3 Budget Session 1: Budget Methodology, Budget Calendar, Long-Term Financial Forecast and Preliminary Budget
Strategies.

April 13, 2026
4 Council Adoption of the Strategic Plan May 11, 2026
5 Budget Session 2: FY 2026-27 Base Budget, Long-Term
Financial Forecast, Budget Strategies and FY 2026-31 CIP Budget Review
May 11, 2026
6 Planning Commission: Review of the Proposed FY2026-
31 CIP Plan for Conformity with General Plan
June 1, 2026
7 Budget Session 3: City Council Review and Approval of Proposed FY 2026-27 City Manager Budget
Recommendations and Workplan
June 8, 2026
8 City Council Budget Hearing: Formal Adoption of the FY 2026-27 Operating and Capital Budget, Citywide Fee
Schedule, and Policies
June 22, 2026
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Packet Pg. 385 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Budgetary Control:

The City utilizes the following procedures to establish budgetary control:

1. The City Manager submits to the City Council a
proposed balanced operating and capital budget
for the next fiscal year.

2. After a review by the City Council, a public hearing is conducted, and further comment is received
from the City Council and the general public.

3. Upon completion of the hearings and
modifications, if any, to the proposed Budget, it is
adopted by the City Council through the passage
of an appropriate resolution. Adoption of the
Capital appropriation from Roy Davies Trust Fund
requires a 4/5 vote of the Council.

4. Generally, the Budget is amended in the middle of the year and at the end of the year.

All approved additional appropriations are added to the adopted Budget, and an amended budget is presented to the City Council, which adopts it after due review.

5. The City Manager is authorized to transfer budget amounts of operational expenditure categories within funds and departments as deemed necessary to meet the City's operational needs.

6. City Council approval is required for all inter-fund transfers, fund reserve to appropriations transfers, new revenue sources with offsetting appropriations, and transfers to/from the capital expenditure category. Although it has been customary to present to Council all transfers between the City departments, the legal budgetary control of the City Council is at the fund level. This is the level where City management cannot overspend the Budget without approval from the City Council.

The City Council holds public budget study sessions and adopts the City operating and capital budget no later than June 30th of each year.

The philosophy employed in creating this budget document has been to focus the City's efforts in continuing to provide quality municipal services, as well as the timely addressing of key infrastructure needs.

The City's budget goals are to achieve a balanced budget with operating revenue, including reimbursements from other funds for services provided, equal to or greater than operating expenditures including debt service).

Budget Methodology:

The FY 2026-27 Proposed Budget is the result of an inclusive and interactive budget development process. In preparation for the FY 2026-27 Proposed Budget, staff factored input received from the Council strategic planning workshops, priorities, proposed Capital Improvement Plan, FY 2025-26 mid-year budget review, and Council's direction throughout the year.
65 11.i
Packet Pg. 386 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) During this year's budget process, staff continued with a modified zero-based budget methodology, a systematic financial management strategy commonly used by local governments to help achieve more cost-effective delivery of public services. Under the model zero-base budget methodology, expenses must be demonstrated as necessary based on the current service level and are not assumed to carry over from prior years. Each new program is considered in light of potential alternatives and priorities that will allow the City to redirect efforts and funds from lower priority to higher priority programs.

Each department was provided a base budget expenditure
allotment consistent with the authorized FY2025-26
Budget, adjusted by known personnel salary and benefit
increases, a 2.0% inflationary increase for professional services contractual obligations, and a 1.0% increase for other operating expenses. Each department was then
given an opportunity to submit prioritized program changes for service enhancements or reductions to the base
budget. For FY 2026-27, departments were directed to
identify approximately 5% in operating budget reductions, resulting in potential savings options to the General Fund to help address current and future structural fiscal
challenges while maintaining core service levels.

The goal of this process is to identify necessary and/or desirable service increase or reduction options, which
combined will reach a balanced and sustainable budget.

To this end, the City Manager reviewed department requests and formulated a packaged budget recommendation of enhancements for the Council's consideration. Staff recommendations are based on many considerations, including the City's strategic plan, staffing capacity, and potential impacts on the overall City operation and services provided to the community.

Base Budget Assumptions:

The base budget is not an exact duplicate of the Adopted or Amended FY 2025-26 Budget because of actions that the Council took throughout the year, and most importantly, the new FY 2026-27 Budget Assumptions that staff developed based on the most current economic factors and information available. These assumptions are described in detail in the materials for the budget study session on May 11, 2026.
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Packet Pg. 387 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Base Budget General Fund Revenue Assumptions:

Revenue estimates have been modified based on the most current information available from department feedback, external sources, and further analysis.

The following revenues are projected to reflect significant changes over FY 2026-27:

Property Tax is the City's largest revenue source. Historically, Pacifica's property tax base has shown slower growth compared to some other Bay Area cities. For the FY 2026-27 Budget, property taxes comprise approximately 35% of City General Fund revenues. Both secured and unsecured property taxes are levied based on the assessed real property valuation (the basis for property tax levy) as of January 1, 2026.

The FY 2026-27 property tax revenues are conservatively projected at $18.4 million or $0.6 million (3.7%) above the FY 2025-26 Mid-Year Revised Budget of $17.7 million based on the information provided by the County and HdL, the City's property tax consultant.

Charges for Services are the second largest revenue category, comprising about 17% of the total General Fund revenue budget. They include building, planning, other permits, recreation revenues, rentals, fines, and reimbursements. This revenue category reflects an increase of $1.3 million or 18%. Approximately $0.9 million of that increase is due to incorporating the updated Wastewater Enterprise administrative service charge, derived from the updated cost allocation plan. The remaining charges received a modest increase of 1%. No additional revenue assumptions related to the comprehensive User Fee Study currently underway have been incorporated into the FY 2026–27 Base Budget at this time. The User Fee Study is expected to be presented to the City Council in early FY 2026–27; However, given the magnitude of the City’s projected structural deficit, staff may present preliminary fee adjustment assumptions as part of future balancing strategies for Council consideration during the next Budget Study Session, prior to completion of the full policy review and fiscal impact analysis associated with the study.

Excess Educational Revenue Augmentation Fund (ERAF) is the third largest revenue category, comprising about 7.3% of the General Fund revenue budget. While Excess ERAF has remained stable in recent years, thus it’s continued use as a Budget Strategy, it was traditionally categorized as one-time funding, it is not considered a reliable revenue source in terms of amount from year to year. The City has seen firsthand how the State’s shifting fiscal policies, such as un-funding the VLF backfill obligations, can impact local revenues. Excess ERAF remains vulnerable to similar policy changes, particularly as the State faces its own ongoing budget challenges.

Consistent with the prior fiscal year budget strategy, the FY 2026–27 Base Budget assumes that Excess ERAF revenues will remain in the General Fund rather than being split between the General Fund, Housing Fund, and Disaster Accounting Fund under the City’s previous allocation methodology. While this approach provides additional support for ongoing General Fund operations and helps address immediate structural budget pressures, it also leaves the Housing and Disaster-related functions without an ongoing recurring revenue source at this time.

Utility Users Tax (UUT) is now the fourth largest revenue category, comprising about 67 11.i
Packet Pg. 388 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) 7% of the General Fund revenue budget. UUT Is projected to increase by 3.5%, based on trends reviewed at the mid-year, or $0.9 million to $3.7 million. The City collects UUT on Gas and Electric at 6.5%, but does not have authority over the utility rates charged by service providers. In recent years, PG&E customers in San Mateo County and throughout Northern California have experienced significant volatility and increases in utility costs associated with wildfire mitigation, infrastructure modernization, and statewide energy reliability investments, all of which directly influence the taxable utility base and resulting UUT revenues.

Vehicle License Fee (VLF) in Lieu is the fifth largest revenue category that accounts for 6.6% of the General Fund revenues, down from third largest in the prior year. The challenges around the VLF in Lieu revenues have been discussed at length during the mid-year budget review. There has been insufficient ERAF to fund the VLF in Lieu allocation for the past six years, resulting in a ongoing revenue shortfall that are projected to continue.

In the past, the State has backfilled the VLF shortfall, but the State's payment lagged two years behind the shortfall year. The City’s FY 2026–27 gross VLF allocation is estimated at approximately $6.3 million. However, after accounting for the projected current-year shortfall of approximately ($3.9 million) and adding the anticipated FY 2024–25 State backfill payment of approximately $1.06 million expected to be received in FY 2026–27, the City’s net VLF revenue is projected at approximately $3.5 million.

This represents a decrease of approximately $1.1 million, or 24.6%, from the prior year’s net VLF revenue. County projections also indicate that the annual VLF shortfall is expected to continue increasing over time.

As indicated with budget strategy #2, staff will continue designating a portion of the General Fund reserves as assigned fund balance to temporarily offset the potential loss of the backfill if the State does not follow through on its obligations in FY 2026-27.

However, as previously discussed, this strategy is inherently short-term in nature.

Utilizing fund balance to address an ongoing revenue shortfall does not resolve the City’s structural imbalance and would effectively serve as a temporary patch. If the City permanently loses this revenue source, a sustainable, ongoing solution will be required, which may include identifying alternative renewable revenue sources, implementing cost containment measures, or reducing service levels to align expenditures with available revenues. Staff will continue working with regional partners on advocacy efforts, closely monitor developments in the State budget, and provide updates to the City Council throughout the FY 2026–27 budget development process as additional information becomes available.

Sales Tax is the City's sixth largest revenue category. At the midyear budget review, staff reported that the sales tax revenues were down, resulting in just over $0.1 million reduction. Based on the most recent discussions with HdL, the City's sales tax advisor, and their sales tax projections, the local sales activities forecast is expected to slightly increase, projecting only a 1.5% or $47k increase over the already reduced FY 2025- 26 Budget, leaving the sales tax revenues of $3.1 million essentially at the same level as the Revised FY 2025-26 Budget.
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Packet Pg. 389 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Measure Y is a ½ cent Transaction & Use Tax that was passed by the voters in the City of Pacifica in November 2022 and went into effect April 1, 2023. Differentiating from the sales tax category above, HdL projects this revenue to increase slightly more over the reduced mid-year level by 2%, or to $2.6 million in FY 2026-27. Measure Y projections are slightly different, as they rely on the countywide pool allocation methodology for certain transactions, including online and out-of-area sales, which can fluctuate based on broader regional and statewide consumer spending trends rather than just local point-of-sale activity.

Other Taxes have been reviewed for historical averages, economic trends, and the prior year's returns. This includes the following:

Transient Occupancy Tax (TOT) revenue is projected to decline slightly anticipating the additional effects of the Short-Term Rental (STR) Ordinance implementation.

At the mid-year the TOT category had shown an increase largely due to STR onetime tax catchup payments from previous cycles. TOT for hotels also showed favorable increases due to newly implemented voluntary compliance agreement with VRBO (HomeAway). STR amounts for the current cycle are trending closer to the projected decrease incorporated with the ordinance change. The FY 2026-27 TOT revenues are projecting a decrease of $0.2 million or 7.8%; Cannabis Operations Tax is estimated to stay flat at this time. However, staff will be closely monitoring this assumption due to reported decreases in cannabis sales tax revenues by HdL and potential changes to cannabis operators; Business License Tax is projecting a 2.6% increase to a total of $0.6 million based on continuing compliance efforts provided by HdL;
Franchise Tax is estimated to stay flat with marginal increase of 1.8%, or $20k, to $1.1 million.

Intergovernmental revenues comprise state and federal government reimbursements for the City’s childcare program, estimated at $2.4 million. However, this category is always reviewed at the midyear budget review following the completion of the audit and reimbursement filings.

Operating Transfers In this year only includes a transfer from the Measure A Fund to cover a portion of the Public Works street maintenance staff budgeted in the General Fund. The transfer allocation was reduced by approx. $1m from prior years following a review of available Streets and NPDES funding sources as part of the cost allocation plan. Measure A and Measure W revenues allocated by the County have continued to trend downward due in part to population declines, reducing the availability of these restricted revenues to sustain prior-year transfer levels to the General Fund.

Base Budget General Fund Expenditure Assumptions:

Total General Fund Base Budget expenditures are projected at $57.1 million at the Base Budget level, $1.9 million, or 3.5% more than the FY 2025-26 Revised Budget.

Operating expenses are set to remain consistent with the prior year's actuals and mid-year revised budget adjustments. This includes removing one-time budget allocations from last year and accounting for expected inflationary increases. 69 11.i
Packet Pg. 390 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Attachment 2 demonstrates the General Fund expenditure estimates for FY 2026-27 at the Base Budget level. Below are the key base budget expenditure assumptions:

Salary and Benefits projections include funding for 202.25 full-time equivalent (FTE) positions citywide and include all current MOU provisions. Funding for overtime and part-time positions remains consistent with the prior year's allocation.

Vacant positions are budgeted at the top step with the "employee family" cafeteria plan assumption for health benefits. Projections also incorporate all current Memorandum of Understanding (MOU) provisions, including merit increases for eligible staff members on their performance anniversary dates.

FY 2026-27 PERS retirement rates are budgeted as provided by CalPERS for classic miscellaneous and safety members and Public Employees' Pension Reform Act (PEPRA) rates for miscellaneous and safety employees without prior municipal experience or those who have had a break in public service.

Employer Plan FY 2026-27
Miscellaneous 11.86%
PEPRA Safety Fire 13.91%
PEPRA Safety Police 13.91%
CLASSIC Safety Fire 24.43%
CLASSIC Safety Police 27.42%
PERS Unfunded Accrued Liability (UAL) payment is budgeted at $7.1 million for Safety and Miscellaneous employees, which is a $0.8 million or 13% increase from FY 2025-26. The Base Budget continues to align with the Pension Funding Policy adopted last year, which commits the City to making an additional annual contribution to the Section 115 Trust administered by Public Agency Retirement Services (PARS). The goal is to accumulate reserves equal to 1.5% of the accrued pension liability by FY 2044-45. In compliance with this policy, the FY 2026-27 contribution to the trust was reinstated at $236,000 to support long-term pension obligations. The Base Budget also includes a continuing contribution to PARS in the amount of $283,750, which represents the funding of the Actuarily Determined Contribution (ADC) per the most recent Actuarial Valuation to fund Other Post Employment Benefits (OPEB) unfunded liability, consistent with the Council funding strategy approved in 2022. Attachment 6 provides additional insight into the City’s funding policy.

Most Professional Services contractual obligations were increased by 1.5% over the FY 2025-26 Revised Budget to account for modest inflationary increases unless further cost increases were noted and factored into the Base Budget by operating departments. The 1.5% assumption remains below recent inflationary trends and reflects and effort constrain baseline expenditure growth where feasible. The category also shows a reduction of approx. $1.0 million or (-10.5)%, primarily due to the removal of previously approved one-time requests that are not part of the ongoing base budget assumptions.

Similarly, most of the Material, Supplies, and Maintenance category assumes a modest 1.5% inflationary increase from the FY 2025-26 Mid-Year Revised Budget, which remains below recent inflationary trends and reflects efforts to constrain baseline 70 11.i
Packet Pg. 391 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) expenditure growth where feasible. This category also removes one-time requests that are not part of ongoing base budget assumptions and keeps training and membership expenditures category flat. As a result, the FY 2026-27 Base Budget allocation for this category is approximately $4.7 million, representing a (-6.6)% decrease over the FY 2025-26 Mid-Year Revised budget.

Risk Management Premium Increase. The FY 2026-27 general liability and worker’s compensation premiums both increased substantially. The 4% or $100k increase in General liability is due to a combination of a challenging insurance market, particularly in property coverage, and the City’s past claims history. After a few favorable years when the City experienced a reduction in the workers’ compensation premium, the coming year’s early estimate shows a significant increase of nearly $0.4 million or 25% primarily driven by a spike in claims involving extended injury-related leaves that remain open. These open claims have adversely affected the City’s claims history and renewal rates. Staff will continue to closely monitor active claims to bring them to resolution and will continue implementation of the Injury and Illness Prevention Program (IIPP) and other risk mitigation efforts citywide to help prevent future exposure.

The FY 2026-27 Base Budget includes a “status quo” continuing funding for funding of non-profit organizations as directed by Council last year for PRC ($100,000) Pacific Beach Coalition ($10,000) and removed the one-time allocations for Fog Fest and Pride.

The Utilities expenditure assumptions for Phone/Cable, Water, and Gas & Electric services were increased by 1.5%. Although utility rates can fluctuate from year to year, gas and electric rates should see less volatile spikes in the coming years. Facilities staff continue to monitor these accounts closely and will evaluate usage trends, rate adjustments, and operational impacts throughout the fiscal year to identify any necessary budgetary adjustments.

The Operating Transfers Out Category accounts for a transfer to the Debt Service Fund to fund Pension Obligation Bonds and other debt service obligations, as well as transfers to the Internal Service Funds for Risk Management programs, Motor Pool operations, and Fire Equipment replacements, totaling $4.3 million. This category reflected a $0.7 million increase over the prior year’s partial one-time reduction in debt service transfers. Last year, the Debt Fund was able to cover a portion of the debt obligations from the fund balance; this year shows a return to the normal debt service level supported by a transfer from the General Fund.

The Capital Transfers Out Category includes an allocation of $50,000 for the Economic Development project, which is further described in the Capital Improvement Program section of this report. This project is consistent with the placemaking and commercial area revitalization strategies identified in the recently developed Economic Development Work Plan and is intended to support smaller-scale repair, replacement, beautification, and activation improvements that immediately enhance visitor-serving areas and support local businesses. This is the only CIP project receiving General Fund support in FY 2026–27. Although, capital transfers are not considered ongoing operating expenditures and therefore are not included in the calculation of the City’s structural deficit, as previously demonstrated in the Long-Term Financial Forecast, the 71 11.i
Packet Pg. 392 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) General Fund does not currently have the capacity to sustain an ongoing General Fund-supported CIP program. This is the only CIP project that the General Fund contributed to this year and is consistent with the prior-year’s General Fund contribution towards CIP.

FY 2025-26 Budget Strategies
The comprehensive update to the Strategic Plan and Priorities was adopted by the Council on May 11, 2026. However, the overarching City goals remained unchanged from the City Council’s March 7th Strategic Planning workshop. During the workshop, the City Council confirmed the following five Pacifica goals for the next five years:

1. Enhance organizational and fiscal stability.

2. Improve and steward City infrastructure, streets, and facilities.

3. Prioritize protection and development of affordable housing.

4. Pursue climate change adaptation and mitigation.

5. Broaden public communications and collaboration.

The Council's input on the following recommended preliminary budget strategies related to these goals will help guide the development of budget recommendations for FY 2026-27 that achieve the Council's Strategic Plan Goals and Strategies and continue providing high-quality City services to the Pacifica community.

Strategy #1: Keep Full Allocation of Excess Educational Revenue Augmentation Funding (Excess ERAF) revenue in the General Fund. (Supports Goal #1).

Excess ERAF has been traditionally treated as a one-time, unreliable revenue source due to unpredictability and dependence on complex property tax calculations by the State. As a result, the City has historically allocated these revenues to special purposes outside of the General Fund, with 50/50% allocation between the Disaster Accounting Fund (Fund 238) and Housing Action Fund (Fund 221).

However, the Council changed this policy direction in FY 2025–26, by retaining the Excess ERAF revenue in the General Fund to be able to balance the budget and maintain essential services. Although Excess ERAF is not considered a stable, ongoing revenue source, Pacifica has consistently received these funds over the past decade. Additionally, staff surveyed other San Mateo County cities and found that many municipalities routinely budget Excess ERAF directly in their General Funds to support core services.

While this approach offers critical financial relief, it also presents longer-term risks:

Disaster Preparedness: Although the Disaster Accounting Fund (Fund 238) currently has ample reserves ($9.9 million), permanently reallocating these funds may leave the City less prepared to respond to emergencies in the long term. As a coastal community vulnerable to annual flooding, winter storms, and infrastructure failures, maintaining an adequate dedicated reserve for disaster response is a prudent and fiscally responsible practice.

Affordable Housing Development: Redirecting funds from the Housing Action Fund (Fund 221) would further limit the City's ability to make progress on affordable housing initiatives, which is one of the City’s key strategic goals. These funds help meet the 72 11.i
Packet Pg. 393 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) City’s Regional Housing Needs Allocation (RHNA) obligations and support local housing strategies aligned with the Climate Action and Adaptation Plan (CAAP) and General Plan. Notably, Excess ERAF represents the only dedicated revenue source for the Housing Action Fund in the City’s budget, and even at current levels, it is insufficient to advance significant housing projects.

Continuation of this proposed strategy reflects the need for near-term fiscal flexibility and responsible stewardship of available resources. Should the City’s fiscal outlook improve or an alternative revenue source be identified, the Council may consider returning to the prior allocation model, to continue funding long-term community resiliency and housing priorities.

Staff will continue to monitor revenue projections and may bring forward an updated recommendation during a future budget session.

Strategy #2: Addressing Financial Uncertainties Related to Vehicle License Fee In-Lieu Backfill Payments from the State (Supports Goal #1).

The uncertainty surrounding Vehicle License Fee (VLF) In-Lieu payments from the State has been a recurring fiscal concern over the last several years. Despite the City's continued reliance on these revenues and budgeting for that, the State’s continuing threat to fulfilling its obligations have made long-term financial planning increasingly difficult.

In FY 2025–26, the City anticipated a $2.3 million backfill under the State’s established twoyear delay in disbursing these funds. However, the State only delivered 2/3 of the payment, and the City did not receive $771k due that year. Since the Council adopted this budget strategy last year, the City was able to backfill the under-funded portion from reserves in order to avoid reducing services in the short-term. The City subsequently joined a lawsuit against the State for the remaining funds.

Unfortunately, the same concerns have emerged again, as the State is not planning to repay its backfill obligation to cities in 2026-27. The VLF backfill repayment is not currently reflected in the State’s draft budget, creating a risk that the City may not receive these funds.

The San Mateo County Mayors, City Managers, and Finance Officers have coordinated a unified regional advocacy effort to address this issue. Through this collaboration, San Mateo County and its cities have engaged in direct outreach to State leadership, submitted formal budget requests, and provided clear, quantifiable examples of how the loss of VLF revenues would affect local communities. These efforts emphasize that VLF In-Lieu payments are not discretionary funding, but rather a legally required backfill intended to support core municipal services.

For the City of Pacifica, the potential loss of approximately $1.06 million in VLF revenue would have meaningful operational impacts. This funding is equivalent to multiple full-time staff positions and could result in reduced capacity in public safety and public works services, deferred infrastructure maintenance, and scaled-back community programs. As outlined in the City’s advocacy materials, these impacts represent the level of service reductions that could be required if the State does not fulfill its obligation.

To proactively mitigate this risk, the City Manager recommends continuing designating a portion of the General Fund reserves as assigned fund balance to temporarily offset the potential loss of VLF revenues. This approach would allow the City to maintain core services 73 11.i
Packet Pg. 394 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) while protecting overall financial stability should the State again fail to deliver the anticipated funding. However, this strategy is inherently short-term in nature. Utilizing fund balance to address an ongoing revenue shortfall does not resolve the City’s structural imbalance and would effectively serve as a temporary patch. If the City permanently loses this revenue source, a sustainable, ongoing solution will be required, which may include identifying alternative renewable revenue sources, implementing cost containment measures, or reducing service levels to align expenditures with available revenues.

Staff will continue working with regional partners on advocacy efforts, closely monitor developments in the State budget, and provide updates to the City Council throughout the FY 2026–27 budget development process as additional information becomes available.

Strategy #3: Prioritize Revenue-Generating Development to Strengthen the City's LongTerm Financial Base (Supports Goals #1 and #3) The City recently presented a comprehensive Economic Development Workplan that outlines a strategic and phased approach to strengthening Pacifica’s economic base and supporting long-term fiscal sustainability. This workplan recognizes that economic development must address both short-term revenue opportunities and longer-term, catalytic projects that expand the City’s tax base. Given the City’s ongoing structural deficit and limited discretionary revenue sources, prioritizing implementation of this workplan is a key component of building a more financially resilient future.

In the near term, the Economic Development Workplan focuses on revenue-generating strategies such as filling commercial vacancies, supporting business retention and expansion, and attracting new businesses to Pacifica’s commercial corridors. These efforts are designed to increase sales tax revenue, stabilize the local business environment, and improve overall economic activity. This includes proactive outreach to property owners and brokers, improving permitting and development processes, and implementing targeted placemaking and corridor revitalization efforts that make Pacifica more attractive to businesses and visitors. These shorter-term actions can help stabilize and incrementally grow revenues while larger initiatives move forward.

At the same time, the City is advancing longer-term, high-impact development opportunities that have the potential to significantly expand the City’s revenue base. This includes advancing housing development projects that increase assessed property values, support local businesses, and help meet the City’s Regional Housing Needs Allocation (RHNA) obligations. In addition, the City continues to make progress on hotel development opportunities, including the City-owned site at 2212 Beach Boulevard, which represents a significant opportunity to generate locally controlled Transient Occupancy Tax (TOT) revenue, increase visitor spending, and diversify the City’s tax base.

Many neighboring cities in San Mateo County have successfully implemented similar strategies, including new hotel developments, mixed-use projects, and commercial revitalization efforts, resulting in increased property values, expanded tax revenues, and improved fiscal stability. Pacifica now has the opportunity to pursue a similar path while maintaining its community character and coastal identity. 74 11.i
Packet Pg. 395 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Strategy #4: Cost Allocation Plan (CAP) (Supports Goal #1) The City is currently working with a consultant to develop a comprehensive Cost Allocation Plan (CAP) as part of a broader effort to improve financial transparency, strengthen cost recovery practices, and ensure long-term fiscal sustainability. The CAP identifies central service and administrative costs, such as Finance, Human Resources, and Facilities, and allocates those costs across departments based on how services are utilized. This process ensures that the full cost of service delivery is accurately understood and consistently applied across the organization. The CAP uses a structured methodology that reviews the City’s budget, organizational structure, and service delivery model to determine appropriate cost allocations and develop fully burdened rates for City services.

The development of fully burdened rates is a critical component of this effort, as it incorporates not only direct personnel costs, but also departmental and central service overhead. This provides a more complete and accurate representation of what it truly costs the City to deliver services. These rates will serve as the foundation for evaluating user fees and internal service charges, ensuring that fees are based on defensible and transparent cost methodologies. In many cases, local governments have historically under-allocated these indirect costs, resulting in a greater reliance on the General Fund to subsidize services that could otherwise be more adequately recovered.

As the CAP is finalized, staff will work with the consultant to quantify the fiscal impact to the General Fund, including identifying areas where costs are currently subsidized and where adjustments could improve cost recovery. While the final results are still being developed, the CAP is expected to provide a range of impacts and policy options that will be incorporated into the FY 2026–27 Base Budget. This will allow the City Council to consider how best to balance cost recovery, service accessibility, and community priorities, while ensuring that the City’s financial structure more accurately reflects the true cost of operations.

Strategy #5: Development Impact and User Fees (Supports Goals #1 and #3) In conjunction with the Cost Allocation Plan, the City is undertaking a comprehensive update to its Development Impact Fees and User Fee Schedule, which have not been comprehensively reviewed in several years. This effort is intended to ensure that fees charged for City services and development-related impacts are aligned with the actual cost of providing those services, consistent with legal requirements and best practices. The consultant’s scope includes a full evaluation of direct and indirect service costs, benchmarking against peer agencies, and developing updated fee schedules that are transparent, defensible, and policydriven.

The User Fee Study specifically evaluates the full cost of service delivery using the fully burdened rates developed through the CAP and compares those costs to the City’s current fee structure. In many cases, fees may not fully
recover the cost of service, resulting in a subsidy from the General Fund. While some level of subsidy may
be appropriate based on policy considerations, such
as promoting access to services or advancing
community goals - these decisions should be made
intentionally by the City Council. The study will
provide a range of cost recovery options, allowing the
75 11.i
Packet Pg. 396 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Council to determine appropriate fee levels based on policy direction, including whether to maintain, reduce, or eliminate subsidies for certain services. Although, the study and most importantly Council’s policy determination for cost recovery level are not going to be complete before the adoption of the budget, staff would have to conservatively build-in some costrecovery assumptions into FY 2026-27.

Similarly, the Development Impact Fee (DIF) Study evaluates the one-time fees charged to new development to ensure that growth pays its fair share of the infrastructure and facilities needed to support it. These fees are calculated based on a legally required nexus analysis and must demonstrate a reasonable relationship between the fee charged and the impact of development, consistent with the Mitigation Fee Act. Given the timing of the budget process, staff will incorporate reasonable assumptions for fee adjustments into the FY 2026–27 Base Budget; however, final fee recommendations will be brought back to the City Council through a separate public process, including study sessions and formal adoption hearings. This ensures that the City maintains a transparent, policy-driven approach while positioning itself to improve long-term fiscal sustainability.

City Manager's Budget Recommendations for the FY 2026-27 Budget:

The overarching goal of the budget process is to develop a balanced and sustainable Budget by thoroughly analyzing the City's revenue structure and current service levels. This includes analysis of necessary service increases and/or reduction options, which, when combined, will achieve a balanced and sustainable budget, which also involves making difficult decisions about where to invest limited resources and where to delay or scale back, while ensuring alignment with the City Council’s adopted Strategic Plan.

Each City Department was given an opportunity to submit their prioritized budget requests with reference to the Council’s specific goals and strategies in the newly adopted Strategic Plan. After a comprehensive review of these requests, the City Manager has developed a balanced FY 2026-27 Recommended Budget that reflects both the City’s financial constraints and its long-term vision.

Developing this budget required tough choices, as the City continues to face a structural deficit and relies on uncertain or one-time revenues. As a result, the City Manager had to weigh each request against future fiscal sustainability, existing staffing and organizational capacity, and the ability to maintain essential services to the community to identify necessary and required service change options, which, in combination, maintain a balanced and sustainable budget.

Each recommended item aligns with one or more of the Strategic Plan goals, which outline the needs, funding impact, and strategic alignment. Despite all efforts to balance priorities and address critical needs, 11 requests, including 9 within the General Fund, 2 in other funds, and 9 new capital projects, totaling $2.5 million, remain unfunded due to resource limitations.

These include essential services and program enhancements that would advance Council priorities but could not be accommodated within the City's limited fiscal capacity this year. 76 11.i
Packet Pg. 397 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Leaving these requests unfunded limits departmental capacity to maintain service levels, deliver on strategic goals, and respond effectively to community needs.

The FY2026–27 budget reflects a difficult but necessary response to the City's ongoing structural deficit. To achieve a balanced budget, approximately $2.1 million in reductions and service-level adjustments were required across multiple departments. While every effort was made to preserve core public safety, legally mandated,
and essential services, some programs and service
enhancements could not be sustained at prior levels. This budget represents a measured approach to aligning
expenditures with available revenues, strengthening the City's long-term fiscal sustainability, and preserving
organizational stability while minimizing impacts to the community wherever possible.

General Fund Department Target Reductions
It was reported that the FY 2026-27 Base Budget included a structural deficit of $3.8 million, which was reduced to $2.3 million after applying the City’s 5% salary savings strategy. To provide additional structural flexibility and establish a buffer against future projected imbalances identified in the Long Term Financial Forecast, departments were asked to identify reduction options equal to approximately 5% of their operating budgets, totaling approximately $2.8 million, even though the immediate remaining budget gap was lower. This approach was intended to provide the City Manager with flexibility as the budget was refined, while also accounting for ongoing fiscal uncertainty and future revenue risks.

Every department met their budget target reduction providing options totaling $3.5 million in reduction options for the City Manager’s review. Staff across all departments worked collaboratively and thoughtfully through a very difficult and challenging process, carefully evaluating operational impacts, service levels, staffing capacity, and organizational priorities in an effort to help address the City’s structural deficit while minimizing impacts to core services wherever possible.

Following additional department budget meetings, and discussing the preliminary options with the Executive Team, the City Manager’s recommendations include revenue increases of $310,722 and expenditure reductions of $2.1 million, creating a modest surplus in the General Fund of $169,119. It is important to note that some of the recommended reductions and balancing strategies represent temporary measures intended to help stabilize the FY 2026- 27 budget and are not be sustainable long-term solutions. Without meaningful growth in revenue and/or new sustainable and recurring revenues sources or long-term funding solutions, the City will need to consider more substantial organizational and service-level changes in future years to align ongoing expenditures with available resources.

In developing the FY2026-27 Recommended Budget, the City Manager evaluated all departmental requests, reduction options, and enhancement proposals using a priority-based 77 11.i
Packet Pg. 398 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) framework intended to balance fiscal sustainability, organizational capacity, service delivery impacts, and long-term strategic objectives.

Category 1: The highest priority category included revenue-generating opportunities, legally mandated or regulatory compliance items, operational efficiencies, and requests where deferral could create operational, financial, infrastructure, or liability risks to the City.

Category 2: The second tier of recommendations focused on preserving core services, addressing critical operational and organizational needs, maintaining essential staffing and service delivery capacity, and advancing high-priority Strategic Plan initiatives where feasible within the City’s constrained fiscal environment.

Requests that could not be accommodated within available resources were identified as unfunded and not recommended for FY 2026-27 consideration.

The City Manager’s recommended options are listed in Attachment 1, and department’s budget forms contain more detailed information and can be found in Attachments 4-7.

General Fund City Manager’s Recommended Program Options by Category:

Service Enhancements - Additional Revenues.

Category 1

1. Additional grant funding in Police Department from California Office of Traffic Safety (OTS), California Highway Patrol Cannabis Tax Fund Grant Program and from the California Department of Alcoholic Beverage Control Alcohol Policing Partnership Program for a net increase of $95,999 to the General Fund (one-time)

2. Net positive General Fund impact from utilizing Opioid Settlement funds in Police Department to offset shared costs of the Mental Health Clinician, resulting in a net increase of $78,900 to the General Fund (one-time)

3. Net positive General Fund impact from increased planning application fee revenue generated through the Community Development Department’s strategic use of contracted services to accelerate and support specialized development review activities, resulting in a net increase of $120,000 to the General Fund (ongoing) Service Enhancements – New Expenditure Requests.

Category 1
Special Financing District Feasibility Study – $30,000 (one-time). Feasibility study evaluating a Special Financing District for streets & road infrastructure improvements.

Library Modernization Project Support – $20,000 (one-time). Continues strategic communications, outreach, and web hosting support through external consultants for the Library Modernization Project.

SB 1383 – $75,000 (ongoing). Provide funding to support new SB 1383 Recovered Organic Waste Products (ROWP) compliance requirements.
78 11.i
Packet Pg. 399 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Convert Limited-Term Maintenance to Permanent – $0 (ongoing) Convert (1) Limited-Term Maintenance Worker I position to a permanent position. Zero effect as term expires within the fiscal year, thus budgeted in the base.

Category 2
GIS Implementation Consultant – $52,000 (one-time) Continuing Consultant Support for in-progress Geographic Information System (GIS) implementation.

Service Reduction Options:

Total City Manager Department Reduction Program Options totaled $1.7 million. To address the remaining General Fund deficit, departments identified reduction options, with the City Manager recommending a balanced approach that prioritizes minimizing impacts to core services while preserving operational flexibility.

The recommended adjustments include a combination of one-time and ongoing expenditure reductions, strategic staffing actions, funding reallocations, program modifications, and the deferral of selected initiatives across all departments.

The City Manager’s recommended options are listed in Attachment 1, and department’s budget forms contain more detailed information and can be found in Attachments 4-7.

In addition to the service-level adjustments outlined below, departments identified a series of budget refinements and operational efficiencies that reduced the General Fund deficit by approximately $515k. Since the last Budget Study Session, when Finance and the City Manager’s Office presented the FY 2026-27 Base Budget, the Administrative Services Director and Assistant City Manager met with each department for a detailed review of departmental budgets, operational needs, expenditure trends, and revenue assumptions.

Through this collaborative review process, staff identified alignment opportunities and budget refinements that could be categorized as adjustments to the Base Budget rather than direct service-level reductions.

Unlike the recommended service reductions, these adjustments generally do not represent direct reductions to service levels, but rather better align budgeted revenues and expenditures with actual operational trends, historical spending patterns, contractual obligations and the most current financial information available during the budget development process.

Examples include revised revenue projections based on updated HdL sales tax estimates and other revenue trend analysis that became available after the Base Budget was presented; right-sizing contractual services and operating budgets; identifying accounts with historically lower utilization; reallocating expenditures between funds where appropriate; and reducing discretionary spending in select operational areas such as postage, travel, supplies, and other non-essential operating accounts. Collectively, these refinements improve budget accuracy and fiscal stewardship while minimizing direct impacts to service delivery wherever possible.

Category 1 reductions and adjustments recommended by the City Manager include the following:

Eliminate annual contribution to the OPEB Trust this year for unfunded retiree health liability ($283,750)
79 11.i
Packet Pg. 400 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Decrease annual transfer to the Fire Equipment Replacement Fund ($65,000 alternative program option recommended as per budget form) Fund a Limited-Term Senior Planner position for LCP/CARP implementation through reallocation of existing funds and matching grant revenues ($31,716 net General Fund impact)
Reallocate funding for Objective Design Standards (Zoning) to the Housing Action Fund ($85,000)
Unfund vacant Management Analyst I/II position and repurpose funding toward Administrative Assistant III classification ($50,406)
Convert City Council and Planning Commission minutes to action minutes format and eliminate a part-time Stenographer position ($26,585)
Transfer Police Department employee wellness funding to Workers’ Compensation Fund ($34,686)
Category 2 reductions and adjustments recommended by the City Manager:

Hiring freeze for (1) Vacant Firefighter Engineer position for 6 months ($108,295 alternative program option recommended as per budget form) Reduce consulting services, software, and equipment replacement budget items in IT Division ($75,336)
Reduce Executive Recruitment Budget ($25,000)
Reduce Conference Registration Budget ($8,125)
Transfer Employee Wellness/Recognition Budget to Risk Management Fund ($33,495) Reduce General Legal Services in CDD, including legal support for the Planning Commission ($25,000)
Reduce General Legal Services in City Attorney’s Office Department budget ($57,000) Eliminate Funding for Portable Restroom (American Portables) Supporting the Temporary Safe Parking Program ($25,000)
Deferral of funding for Special Financing District Feasibility Study (CFD / EIFD / PBID) for Sharp Park and other commercial areas ($75,000)
Remove Economic Development Committee Budget ($7,750)
Freeze Vacant Lead Teacher Position ($118,090)
Discontinue the Senior Services Transportation Program ($115,761) Phase out City Aquatics Services ($154,462)
Hiring freeze of (1) Vacant Police Officer position for 6 months ($110,394) Transfer salary and benefit costs for a Community Services Officer position to the Supplemental Law Enforcement Services Grant Fund ($38,300) 80 11.i
Packet Pg. 401 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Reassign the Community Emergency Response Team (CERT) Program from Police to NCFA oversight ($20,000 alternative program option recommended as per budget form)
Reduce Janitorial Services in Public Parks ($70,000)
Hiring freeze of (2) .5 FTE Vacant Part-Time Maintenance Assistant Positions (48,550) Not Recommended Options:

The City Manager does not recommend the following General Fund program options due to the potential impacts on core service delivery, organizational capacity, operational responsiveness, and already limited staffing resources. In several cases, as listed above, the recommended budget instead reflects alternative balancing strategies intended to minimize service disruptions while still achieving necessary fiscal reductions.

Accordingly, the vacant positions identified below as potential reduction options are not recommended for elimination or extended hiring freezes. If the City Council approves the City Manager’s Recommended Budget, departments would be authorized to continue recruitment efforts for these positions in order to minimize impacts to service delivery and maintain operational capacity.

Similarly, while certain reductions to community outreach and engagement programs are recommended, the City Manager does not recommend elimination of all related programs.

Instead, staff recommends an alternative approach that would transfer administration of the Community Emergency Response Team (CERT) program from the Police Department to North County Fire Authority (NCFA) oversight, while preserving other community-oriented programs such as the Teen Academy and related outreach efforts.

Below are the budget options NOT recommended at this time:

Hiring freeze of (1) Firefighter Engineer Vacant position ($216,590) Unfund vacant Management Analyst position in City Manager's Office ($200,177) Funding for professional event planning support and community activation efforts per Economic Development plan ($30,000)
Hiring freeze of (1) Vacant Police Officer Position ($220,778) Hiring freeze of (1) Vacant Community Service Officer Position ($80,432) Reduction in Police Department community outreach and engagement programs (75,000)
Add Management Analyst position for Public Works Department (General Fund 0.5 FTE allocation) ($104,252)
Some of these requests may need to be revisited during the Mid-Year Budget Review, pending further analysis, refined cost estimates, or change in revenue conditions, either improving (possible revenue measure) or deteriorating (VLF backfill withheld). 81 11.i
Packet Pg. 402 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Council Consideration Community Programs:

During the annual budget process, the Council often receives requests from community organizations for financial support for discretionary community programs, sponsorships, pilot initiatives, and contributions to outside organizations. Given the City’s current fiscal constraints and structural budget challenges, the City Manager’s FY 2026-27 Recommended Budget is primarily focused on maintaining core municipal operations, essential services, regulatory obligations, and organizational sustainability.

Given the scope and negative impact of the service reductions included in the City Manager’s recommended budget, the programs and requests identified below are not included in the City Manager’s Recommended Budget. However, because several of these items reflect broader community priorities, policy considerations, or Council-directed interests expressed during prior Council discussions, they are presented separately for potential City Council consideration during the budget adoption process. Inclusion of these items would require additional appropriations, and may require alternative funding sources or policy tradeoffs with additional reductions elsewhere in the budget, subject to Council policy direction.

Community Grants as follows:

Pacifica Resource Center (PRC) – $100,000
Pacifica Beach Coalition (PBC) – $10,000
Fog Fest – $25,000
Pacifica Coast Pride – $5,000
OneShoreline – $40,000
A contribution to support regional efforts related to climate resilience and sea-level rise adaptation, coordinated through the San Mateo County Flood and Sea Level Rise Resiliency District (OneShoreline).

Throne Labs Public Restroom at Fairmont Park – $79,110
A request to install a portable Throne Labs Public Restroom at the Fairmont Rec Park for a 1-year pilot program.

Throne Labs Public Restroom at Municipal Pier – $54,110 A request to install a portable Throne Labs Public Restroom at the Pier for a 1-year pilot program, offset by eliminating the maintenance cost of the existing bathroom.

Projected Fund Balance Structure and Budgetary Reserves:

The Proposed FY 2026-27 Operating Budget is being presented as a balanced budget.

However, it is important to note that this is not a structurally balanced budget, meaning that the City’s operating expenditures exceed operating revenues. Even considering the program reduction options, the budget would not be balanced without the salary savings mechanism.

Although, City’s use attrition and vacancy savings to offset costs, this has become an increasingly significant component of the City’s budget strategy. Reliance on ongoing vacancy savings is not a long-term sustainable solution, as it assumes positions remain unfilled and can contribute to increased workloads, service delivery challenges, employee burnout, recruitment and retention difficulties, and the deferral of organizational priorities. 82 11.i
Packet Pg. 403 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Addressing the City’s structural imbalance will ultimately require a combination of expenditure reductions, revenue enhancements, operational efficiencies, and policy decisions that align ongoing costs with recurring revenues.

If all program options identified in this report are approved by the City Council, as presented the General Fund will project an ending surplus of about $169k.

After factoring in the above-mentioned budget options, the General Fund Proposed Budget revenues and transfers-in are projected at $53.6 million. The total General Fund operating expenditures and transfers-out are budgeted at $55.0 million, and the capital transfer-out remains at $50,000. The table below demonstrates the Net change to the General Fund balance.

After applying all the changes described above, the Proposed General Fund Budget will have a $169k surplus, leaving $12.4 million in the Unassigned General Fund Balance, which is about 22.6% of the City’s Operating expenditures in addition to 10% or $5.5 million in the minimum policy reserve.

The City’s Fund Balance Policy identifies fund balances (or reserves) that fall into the following categories: nonspendable items or portions of fund balance that cannot be liquidated, restricted amounts for use by outside
agencies, committed amounts by Council action such as
emergency /contingency reserves and assigned
balances to pay off unfunded liabilities and to fund
infrastructure improvements.
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Packet Pg. 404 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) In accordance with GASB Statement No. 54 requirements and the City policy, the Council established the following designations or contingencies of the General Fund Committed Balance.
o Budget Shortfall Policy Reserve of 10% of Expenditures ($5.5 million) o VLF Restriction Budget Strategy #2 ($1.06 million)
o Facilities Maintenance & Replacement ($0.2 million)
o Compensated Absences Reserve ($0.2 million)
o Child Care Reserve ($0.5 million)
o Legal Reserves ($0.1 million)
The General Fund balances for the FY 2026-27 Recommended Budget are detailed in the table below. If all options presented in this report are approved by the Council, the City will have a balanced FY 2026-27 Budget with an undesignated General Fund Balance of approximately $12.4 million.

Maintaining a sufficient level of the projected ending fund balance is necessary for fiscal and operational sustainability. After factoring in the restricted reserves and operating contingency, the ending undesignated General Fund balance is projected to be close to $12.4 million or

22.6% of the General Fund operating expenditures (excluding one-time capital transfers), 84 11.i
Packet Pg. 405 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) which equates to slightly less than three months of regular operating expenditures and is slightly above the Government Finance Officers Association of the US and Canada (GFOA) minimum recommendation for government entities of no less than two months of regular general fund operating expenditures (approx. $9.2 million for the City of Pacifica in FY2026- 27).

Other Funds:

Staff used the same basic assumptions for all other funds to factor in a 2% cost of living increase for most contract and professional services categories and 1% for materials and supply categories. The summary of Revenues, Expenditures, and Fund Balances for all of the City’s fund categories is shown in the table below. Revenues under expenditures for Enterprise Fund and Internal Service Fund reflect the uses of the available fund balance for one-time needs.

Other Funds Program Options:

The City Manager’s FY 2026-27 Budget recommendations for non-General Fund programs are summarized below.

These recommendations total $1.1 million, which include receiving transfers from the General Fund reductions in the Risk, COPS Grant, and HAF funds.

Other Funds – Recommended Program Options:

Category 1 reductions and adjustments recommended by the City Manager include the following:

Funding for zoning modernization & code updates to align with General Plan ($185,000) Fund 221 HAF
Funding for development and implementation of Objective Design Standards within the Zoning Code ($85,000) Fund 221 HAF
Transfer-in funding for CSO position from GF to the Supplemental Law Enforcement grant ($38,300) Fund 207 COPS
Category 2 reductions and adjustments recommended by the City Manager:
85 11.i
Packet Pg. 406 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Funding to evaluate housing opportunities on
publicly owned lands consistent with General
Plan Program HE-I-3 ($150,000) Fund 221
HAF
Funding for on-call professional services
supporting Housing Element implementation
activities ($80,000) Fund 221 HAF
Funding for the purchase of four vehicles for
Public Works and Police Department
operations ($286,500) Fund 671/672 Motor
Pool
Additional funding for Wastewater Operations and Maintenance Expenses ($140,701) Fund 518 Wastewater
Funding for a predictive maintenance study to support long-term infrastructure and asset management planning ($50,000) Fund 518 Wastewater Funding for implementation of a Computerized Maintenance Management System (CMMS) for the WWTP ($25,000) Fund 518 Wastewater
Transfer-in Police Department and HR Wellness funding to the Workers' Compensation Fund ($68,181) Fund 518 Wastewater
Not Recommended Options:

Management Analyst Position - As mentioned above, the City Manager did not recommend funding an additional management analyst shared between the General Fund and Wastewater at this time.

Continuation of the Temporary Safe Parking Program (TSPP) The City Council may also wish to provide direction on whether to continue funding the Temporary Safe Parking Program (TSPP) in FY 2026-27, and if so, at what level. The TSPP program currently includes 15 spaces total, consisting of 10 leased RV spaces and 5 on-street spaces, with support services provided by the Pacifica Resource Center. The current annual program cost is approximately $463,000, including PRC support services, leased RV spaces, portable restrooms, and partial (.25 FTE) Community Service Officer support.

The program was originally established as a temporary initiative. Given the City’s structural budget challenges and the significant cost of the program, staff is presenting this item separately for Council consideration. If the Council wishes to continue the TSPP in some form, the City Manager recommends that the Housing Action Fund be used to support eligible program costs. With the current Housing Action Fund balance of approximately $2 million, funding all recommended Housing Action Fund requests and the TSPP would reduce the projected ending fund balance to approximately $934,000. In addition, with ERAF revenues now retained within the General Fund as part of the City’s broader fiscal stabilization strategy, the Housing Action Fund no longer has an ongoing dedicated revenue source to replenish fund balance reductions in future years.
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Packet Pg. 407 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Update to the City Manager's Budget Recommendations following Council Direction:

The City Manager’s recommendations were carefully considered and presented to Council.

However, Budget Study Session #3 was heavily attended by residents and non-residents of all ages, both in person and online, and generated over one hundred emailed comments, and over two hundred responses to a budget reduction survey as the reduction options presented included several service reductions with direct impacts on community programs, recreational opportunities, public services, and overall quality of life.

In regard to the General Fund specific direction provided by the Council on June 8th, the agreement was unanimous to reinstate the aquatics program, as well as reduce Council’s budget for conferences, and support certain community organizations.

The summarized list of changes incorporated in the General Fund’s final proposed budget is below:

Reinstate the reduction of $154,462 to abandon the phase-out of the aquatics program. Council provided further direction for staff to negotiate a six-month as-is extension with the school district to allow for time to develop a Council Adhoc Committee in order to determine whether a longer-term lease is feasible.

Remove the $20k budget request for library outreach, and directed staff to utilize the remaining balance in the Library Fund.

Reduce the Council conference budget by $1,500 for each of the five districts totaling $7,500.

Provide support for certain community organizations:

Fog Fest $25k
OneShoreline $10k
Pacifica Beach Coalition (PBC) $10k
Pride $5k
The contribution to Pacifica Resource Center (PRC) was moved to the Housing Fund and listed in the Other Funds section.

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Packet Pg. 408 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Projected
Fund Balance
6/30/2026
Revenues &
Transfers-In
Adopted Budget
Expenditures &
Transfers-Out
Adopted Budget
Revenue Over
(Under)
Expenditures
Projected
Fund Balance
6/30/2027
101 GENERAL FUND 20,924,400 $ $ 55,504,839 53,889,322 $ (1,615,517) $ $ 19,308,883

SPECIAL REVENUE FUNDS
207 Supplemental Law Enf Serv 513,510 189,345 151,500 475,665 (37,845) 209 Measure A (347,479) 1,092,464 1,456,560 16,617 364,096 210 Gas Tax (701,358) 1,715,586 2,436,629 19,685 721,043 211 Measure W 419,018 687,000 704,200 436,218 17,200 213 Street Improvement 1,495,212 745,000 592,230 1,342,442 (152,770) 216 NPDES Stormwater (112,603) 79,849 193,341 889 113,492 221 Housing Action Fund 2,082,149 861,180 - 1,220,969 (861,180) 224 Housing In-Lieu 290,966 - 15,839 306,805 15,839 225 Parking In-Lieu 140,254 - 1,782 142,036 1,782 227 Davies Trust 618,609 79,110 - 539,499 (79,110) 228 PB&R 2,105,548 12,525 - 2,093,023 (12,525) 229 Tree Replacement*** - - - - - 238 Disaster Accounting 9,970,537 464,110 - 9,506,427 (464,110) 293 Housing Successor 372,513 - - 372,513 - 312 Highway 1 Improvement 677,910 5,541,046 4,955,000 91,864 (586,046) 314 Manor Drive Improvement** 266,060 - - 266,060 - 315 Aircraft Noise Project 448 - - 448 - 319 Planned Local Drainage 359,737 2,132 25,000 382,605 22,868 322 General Capital Improvmnt (23,186) 94,968 119,967 1,813 24,999 323 Frontierland Remediation 226,351 - 75,000 301,351 75,000 326 Parks and Playfield 585,794 - 100,000 685,794 100,000 331 Pacifica Library 8,437 8,000 - 437 (8,000) $ 10,827,048 18,948,427 $ 11,572,315 $ (745,267) $ 18,203,160 $

DEBT SERVICE FUNDS
440 Debt Service Fund 74,053 2,972,787 2,972,787 74,053 - Total Debt Service Funds 74,053 $ 2,972,787 $ 2,972,787 $ - $ 74,053 $

ENTERPRISE FUNDS
518 Sewer Utility 18,154,649 39,883,185 34,839,302 13,110,766 (5,043,883) 535 Beach Parking (94,424) 614,077 526,400 (182,101) (87,677) Total Enterprise Funds 18,060,225 $ 35,365,702 $ 40,497,262 $ (5,131,560) $ 12,928,665 $

INTERNAL SERVICE FUNDS
665 Self Insurance - Dental Plan 338,147 305,642 305,642 338,147 - 666 Self Ins - Workers Comp 613,000 1,950,143 1,881,962 544,819 (68,181) 667 Self Ins - General Liability 971,591 2,884,961 2,834,961 921,591 (50,000) 671/2 Motor Pool 2,098,884 1,563,824 1,487,324 2,022,384 (76,500) 674 Fire Equip Replacement 332,852 - 60,000 392,852 60,000 Total Internal Service Funds 4,354,474 $ 6,569,889 $ 6,704,570 $ (134,681) $ 4,219,793 $ Total Other Funds 41,437,179 $ 55,735,426 $ 61,746,934 $ (6,011,508) $ 35,425,671 $ Total All Funds 62,361,579 $ 109,624,748 $ 117,251,773 $ (7,627,025) $ 54,734,554 $ * ** Negative balances will be reviewed during the budget development process and at year-end to reduce and/or eliminate deficit in these funds
City of Pacifica
FY 2026-27 Proposed Budget
Summary of Fund Balances
Fund Name
Total Special Revenue & Capital Funds
Enterprise Funds and Internal Service Funds include capital investments and depreciation, the above does not represent cash balance
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Packet Pg. 409 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
General Fund Overview

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THIS PAGE IS INTENTIONALLY
BLANK
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Packet Pg. 411 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

General Fund Overview
The General Fund is the primary operating fund of the City and is used to account for day-to-day activities. It receives unrestricted revenue and provides City general administrative services, public safety, and land development–related activities.

All general tax revenue and other revenues that
are not allocated by law or contractual agreement
to another fund are accounted for in this fund. The
General Fund is an unrestricted fund and its
resources can be used for any City service or
governmental purpose.

The major revenue sources for the General Fund
are transient occupancy (hotel) taxes, sales taxes,
property taxes, charges for services, and other
revenue.

The General Fund provides for the cost of operating the City government and includes the City Manager, City Attorney, City Clerk, City Council, Finance and Risk Management, Human Resources, Information Technology, Public Safety, and Emergency Services Operations, Planning and Building Services, Code Enforcement, Engineering, Facilities Maintenance, Parks, Beaches and Recreation Services. In addition, General Fund expenditures may include capital projects and reserve funding.

Pacifica is a full-service City that provides services to the community using City staff in combination with contract services. The Public Works, Engineering, Community Development, Administrative Services, Finance, City Clerk, and City Manager departments consist primarily of City staff. This work is supplemented by contracts with other government agencies and consulting services that provide the City with Animal Control, Building Inspection, Dispatch, Janitorial, Fire Suppression and Prevention, Legal Services, and Library Operations.

Budget Overview
The General Fund budget for FY 2026-27 is $53.9 million in revenue and transfers-in, as well as $55.5 million in operating expenditures and transfers-out, including a onetime capital transfer of $0.05 million. After incorporating the City Manager’s budget recommendations and the Council’s policy directions from the last budget study session, the Proposed General Fund Budget will be balanced with no surplus.

General Fund Revenues
Unlike appropriations that can be established at the direction of the City, many key revenue sources are controlled by external forces to the City. For instance, property tax revenue varies with real estate values, and development-related revenue is affected by the volume and type of building permits and plan check requests. Sales tax and transient occupancy tax (TOT) revenues are subject to local and national economic 91 11.i
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cycles, businesses’ decisions to locate in the community and the travel activity of businesses and tourists.

The following three sources make up 45% of the revenue in the General Fund:

Transient Occupancy (Hotel) Tax, Property Tax, and Sales Tax. 92 11.i
Packet Pg. 413 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

Pacifica’s key general fund revenue categories are further described below:

Property tax:

Property tax is the City’s largest tax revenue source. Property tax revenue is collected and distributed by the County of San Mateo based on applying the constitutionally limited tax rate of 1% to the assessed value of certain secured and unsecured properties as determined by the County Assessor.

The City’s share of this property tax revenue is approximately 23.66%, less than the rebate back to the State for Educational Revenue Augmentation Fund (ERAF), which would bring the City’s General Fund portion of property tax revenue down to a net share of about 24 cents per each dollar of tax collected.

Where Do Property Taxes Go?
Based on the City’s largest Tax Rate Area (TRA)
The City considers the historical rate of changes and economic conditions when forecasting property tax revenue. Property tax revenue shows increases based on figures from the San Mateo County Assessor’s Office. This is consistent with trends throughout the County.
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Packet Pg. 414 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

While the property tax budget revenue assumes a 3.7% increase for base property tax based on prior-year trends, and information received from the San Mateo County Controller’s Office, the FY 2026-27 budget recommendation for overall property taxes of $18.4 million will be an increase of $0.66 million over the FY 2025-26 Revised Budget.

Sales and Use Tax:

The Sales Tax is currently the City’s fourth largest
tax revenue source. Sales tax is collected by the
State Board of Equalization against tangible items.

The local portion is distributed to cities and
counties based on the location of the sale.

Based on the most recent discussions with HdL,
the City's sales tax advisor, and their sales tax
projections, the local sales activities forecast is
expected to increase, projecting a 2% or $73,666
increase over the FY2025-26 Budget, leaving the
sales tax revenues of $3.2 million.

Measure Y:

Measure Y is a ½ cent Transaction & Use Tax that was passed by the voters in the City of Pacifica in November 2022. The tax became effective April 1, 2023 and FY 2024-25 was the first full year of collections. Consistent with the sales tax category above, HdL projects this revenue to increase to $2.6 million in FY 2026-27, an increase of $100,000 or 4% above the previous fiscal year. This revenue source is now the sixth-largest revenue category.

Transient Occupancy Taxes (TOT):

Transient occupancy taxes are assessed on The City’s seven hotels and lodging establishments, short-term-rental properties, and one RV Park at a rate of 12%. Based on the information provided by the City’s Chamber of Commerce, the Managing Agency for the Pacifica Tourism Marketing District (PTMD), 330 available rooms averaged about 73% occupancy to accommodate annual coastside visitors. Transient Occupancy Tax (TOT) revenue, as projected, declined as a result of new Short-Term Rental (STR) Ordinance changes. For FY2026-27, staff estimate a reduction of $0.24 million or a 8% decrease.

Charges for Services:

Charges for Services is the second largest revenue category, comprising about 14% of the total General Fund revenue budget. They include building, planning, other permits, recreation revenues, rentals, fines, and reimbursements. This revenue category reflects an increase of $1.6 million or 26%.
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Packet Pg. 415 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

Vehicle License Fee (VLF) in Lieu:

Vehicle License Fee (VLF) in Lieu accounts
for 6% of the General Fund revenues. The
challenges around the VLF in Lieu revenues
have been discussed at length during the midyear budget review. There has been insufficient ERAF to fund the VLF in Lieu
allocation for the past seven years, resulting
in a shortfall of revenue in the funding source
the state traditionally used to cover its in-lieu
obligations to cities and counties, and this gap
is projected to continue going forward. In the past, the State has backfilled the VLF shortfall, but the State's payment lagged two years behind the shortfall year. While the City’s revenue includes the $1.06 million VLF backfill that is due to the City in FY 2026-27, this amount is currently not included in the State’s proposed budget. Therefore, the Council approved Budget Strategy #2 which accounts for this backfill amount in restricted fund balance in the event the final State budget still does not fulfill this obligation with the final adopted State budget. The City is continuing to engage in coordinated, countywide advocacy efforts to secure this funding.

Other Categories:

Other Revenues include the Intergovernmental category, which includes revenues received from the Federal, State, County, and other governmental agencies. Other significant revenue categories include the Utility Users Tax (UUT), Cannabis Operations Tax and Business License Tax.
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General Fund Expenditures
The 2026-27 General Fund Budget expenditures of $55.5 million show a $0.3 million or 1% increase in spending over the Revised 2026-26 Budget. Operating expenses are usually set to remain consistent with the prior year's actuals and mid-year revised budget adjustments. This includes removing one-time budget allocations from last year and accounting for expected inflationary increases.
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Transfers For Capital Project Funds:

The General Fund typically helps to fund
projects and expenditures identified in the
City’s Capital Improvement Plan (CIP) that
is budgeted in various Special and Capital
Funds. Staff always strives to identify
probable funding sources for projects and
explore outside funding sources whenever
possible. These include Federal and State
Grants, County contributions, Gas Tax, and
various other tax measures. When no
external sources of funding can be
identified, General Fund is allocated to help
fund identified projects. In the FY 2026-27
adopted CIP, there will be a one-time transfer toward the CIP program of $50,000. The City’s FY 2026-27 $28.8 million Capital Program is quite aggressive and is comprised of 30 capital projects.

Additional information on the City’s Capital Improvement Program can be found in the separate FY 2026-2031 CIP Budget document.

Reserves and Assigned Funds:

The City’s Fund Balance Policy identifies fund balances (or reserves) that fall into the following categories: non-spendable items or portions of fund balance that cannot be liquidated, restricted amounts for use by outside agencies, committed amounts by Council action such as emergency /contingency reserves and assigned balances to pay off unfunded liabilities and to fund infrastructure improvements.

In accordance with GASB Statement No. 54 requirements and the City policy, the Council established the following designations or contingencies of the General Fund Committed Balance.

Budget Shortfall Policy Reserve of 10% of Expenditures ($5.5 million) VLF Restriction Budget Strategy #2 ($1.06 million) – new strategy in FY 2025-26 Facilities Maintenance & Replacement ($0.2 million)
Compensated Absences Reserve ($0.2 million)
Child Care Reserve ($0.5 million)
Legal Reserves ($0.1 million)
The Recommended FY 2026-27 Budget is balanced and includes an undesignated General Fund Balance of $12.2 million in addition to the rest of the General Fund balances, as detailed in the table below.
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The Committed Contingency Reserves provide funds for the City to cover unexpected and sharp drops in revenues due to the economic fluctuations, emergencies, and other unanticipated expenditures and events. The City’s policy requires to set aside 10% of budgeted annual operating expenses. In calculating the FY 2026-27 operating 10% contingency reserves, staff included operating transfers in the expenditures figures and set aside nearly $5.5 million for this purpose.

Together with other contingencies in the above table, the FY2026-27 total assigned reserves are $7.6 million of the General Fund operating expenditures (excluding onetime and capital transfers). The unassigned General Fund Balance is projected at $12.2 million, combined with the 10% contingency reserve of $5.5 million mentioned above, the total General Fund reserves exceed the minimum GFOA-recommended threshold of two months of operating revenues or expenditures.
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Packet Pg. 419 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) 2023-24 Actual 2024-25 Actual
2025-26 Revised
Budget
2026-27
Proposed
Budget
$ 16,794,730 16,457,779 $ 17,728,670 $ 18,391,000 $
$ 4,832,135 3,871,397 $ 4,639,057 $ 3,499,000 $
$ 585,715 579,529 $ 582,000 $ 597,000 $
$ 786,652 846,714 $ 700,000 $ 700,000 $
$ 3,101,940 3,199,915 $ 3,125,230 $ 3,198,896 $
$ 2,582,546 2,566,255 $ 2,560,000 $ 2,660,000 $
$ 3,296,520 2,930,387 $ 2,984,221 $ 2,750,000 $
$ 3,186,469 2,673,871 $ 3,646,762 $ 3,738,000 $
$ 145,000 105,000 $ 3,860,000 $ 3,900,000 $
$ 1,404,093 1,324,720 $ 1,171,440 $ 1,192,000 $
$ 4,944,471 3,499,064 $ 2,725,420 $ 2,602,568 $
$ 3,156,360 2,929,489 $ 2,441,400 $ 2,647,233 $
$ 5,754,552 5,509,152 $ 6,005,900 $ 7,563,625 $
$ 1,422,000 1,291,900 $ 1,478,800 $ 450,000 $
$ 51,993,184 47,785,173 $ 53,648,900 $ 53,889,322 $
Intergovernmental
Other Revenue
Charges for Services
Transfers In
Total General Fund Rev.

City of Pacifica
FY 2026-27 Budget
General Fund Revenues By Type
Revenue
Property Tax
Vehicle License Fees
Business License Tax
Cannabis Tax
Sales Tax
Measure Y
Transient Occupancy Tax
Utility Users Tax
ERAF
Franchise Tax
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
2023-24 Actual 2024-25 Actual 2025-26 Revised Budget 2026-27 Proposed Budget 99 11.i
Packet Pg. 420 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) 2023-24 Actual
2024-25
Actual
2025-26
Revised
Budget
2026-27
Proposed
Budget
Salaries & Benefits 30,593,590 $ 32,513,691 $ 36,477,464 $ 38,254,739 $ Contract Services 6,520,281 $ 7,964,118 $ 9,999,608 $ 8,521,375 $ Material/Supplies/Maintenance 4,101,115 $ 5,035,576 $ 5,082,849 $ 4,423,132 $ Transfers Out - Capital 688,000 $ 75,000 $ 50,000 $ 94,967 $ Transfers/Allocations Out 4,026,200 $ 2,509,600 $ 3,593,226 $ 4,210,626 $ Total General Fund Exp. $ 48,097,986 45,929,185 $ 55,203,147 $ 55,504,839 $ City of Pacifica
FY 2026-27 Budget
General Fund Expenditures By Type
Expenditures
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
2023-24 Actual 2024-25 Actual 2025-26 Revised Budget 2026-27 Proposed Budget 100

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Packet Pg. 421 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actuals Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes 34,310,246 $ 34,450,567 $ 36,570,801 $ 36,586,482 $ 37,137,380 $ 36,725,896 $ Property Tax 15,950,080 $ 16,457,779 $ 16,794,730 $ 17,466,700 $ 17,728,670 $ 18,391,000 $ Vehicle License Fees 5,870,043 $ 3,871,397 $ 4,832,135 $ 5,410,902 $ 4,639,057 $ 3,499,000 $ Business License Tax 514,550 $ 579,529 $ 585,715 $ 582,000 $ 582,000 $ 597,000 $ Cannabis Tax 853,552 $ 846,714 $ 786,652 $ 800,000 $ 700,000 $ 700,000 $ Sales Tax 3,319,862 $ 3,199,915 $ 3,101,940 $ 3,241,230 $ 3,125,230 $ 3,198,896 $ Measure Y 557,966 $ 2,566,255 $ 2,582,546 $ 2,505,100 $ 2,560,000 $ 2,660,000 $ Transient Occupancy Tax 3,155,960 $ 2,930,387 $ 3,296,520 $ 2,358,000 $ 2,984,221 $ 2,750,000 $ Utility Users Tax 3,312,376 $ 2,673,871 $ 3,186,469 $ 2,870,000 $ 3,646,762 $ 3,738,000 $ Other Taxes 775,857 $ 1,324,720 $ 1,404,093 $ 1,352,550 $ 1,171,440 $ 1,192,000 $ Intergovernmental 6,687,999 $ 3,499,064 $ 4,944,471 $ 2,762,824 $ 2,725,420 $ 2,602,568 $ Other Revenue 895,383 $ 1,377,137 $ 1,809,186 $ 4,897,300 $ 4,923,300 $ 5,155,352 $ Charges for Services 6,945,501 $ 7,166,504 $ 7,246,727 $ 7,460,700 $ 7,384,000 $ 8,955,506 $ Total Revenue 48,839,128 $ 46,493,273 $ 50,571,184 $ 51,707,306 $ 52,170,100 $ 53,439,322 $ Expenditures Salaries & Benefits 31,364,060 $ 30,593,590 $ 32,513,691 $ 36,477,916 $ 36,477,464 $ 38,254,739 $ Contract Services 6,724,196 $ 6,520,281 $ 7,964,118 $ 8,719,867 $ 9,999,608 $ 8,521,375 $ Material/Supplies/Maintenance 4,619,448 $ 4,101,115 $ 5,035,576 $ 4,501,536 $ 5,082,849 $ 4,423,132 $ Debt Service 46,696 $ - $ - $ - $ - $ - $
Total Expenditures 42,754,400 $ 41,214,985 $ 45,513,386 $ 49,699,319 $ 51,559,921 $ 51,199,246 $ Excess revenue over
(under) expenditures 6,084,727 $ 5,278,287 $ 5,057,798 $ 2,007,987 $ 610,179 $ 2,240,076 $ Other financing sources (uses)
Transfers In 1,130,900 $ 1,291,900 $ 1,422,000 $ 1,478,800 $ 1,478,800 $ 450,000 $ Deb Transfers/Allocations Out (233,300) $ (1,433,900) $ (2,509,600) $ (2,048,781) $ (2,117,561) $ (1,758,976) $ Transfers Out - Debt Service (2,072,081) $ (1,942,300) $ - $ (1,419,798) $ (1,419,798) $ (2,451,650) $ Transfers Out - Capital (655,000) $ (1,338,000) $ (75,000) $ (50,000) $ (105,867) $ (94,967) $ Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) (1,829,481) $ (3,422,300) $ (1,162,600) $ (2,039,779) $ (2,164,426) $ (3,855,593) $ Excess revenue and other
sources over (under) expenditures
and other uses 4,255,246 $ 1,855,987 $ 3,895,198 $ (31,792) $ (1,554,247) $ (1,615,517) $ Restatement (3,663,008) Beginning Net Assets as Restated, July 1 $ 16,884,463 16,292,224 $ 18,740,450 $ 22,635,648 $ 22,635,648 $ 21,081,401 $ Ending Net Assets, June 30 (Projected) $ 18,740,450 20,547,471 $ 22,635,648 $ 22,603,856 $ 21,081,401 $ 19,465,884 $ City of Pacifica
General Fund (101)
Statement of Revenue, Expenditures and Changes in Net Assets 101

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Packet Pg. 422 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

LONG-TERM FINANCIAL FORECAST

ASSUMPTIONS
FY 2026-27 Budget Process
The long-term financial model features a set of assumptions for revenues and expenditures based on conservative projections and information available at the time of publication. The forecast starts with the FY 2026-27 proposed budget plus ten (10) forecasted years to make up the financial forecast. This forecast is intended to be used to guide strategic budgeting and financial stability efforts, in accordance with Strategic Goal #1 – Enhance organizational and fiscal stability.

Revenue Assumptions

1. Property Tax is the City's biggest revenue category. Based on assessed market value and information provided by the county and HdL, the City’s property tax consultant, these revenues remain strong. These revenues assume a 3.0% annual growth rate during the first three years of the forecast period, followed by a 3.5% assumption for the subsequent seven years

2. Vehicle License Fees (VLF) are tied to property-assessed value growth and a corresponding growth in tax revenue. Utilizing the estimates from San Mateo County, VLF assumes a 6.6% increase year over year, however the State has been unable to fulfill its payments in the year due, causing a shortfall each year. The shortfall becomes an estimate to be received two years later, which is referenced as a backfill. The FY 2026-27 proposed budget includes the projected shortfall in the current year of $3.9 million, which will be due in FY 2029. The preliminary assumptions include the backfill to be received in the current year owed from FY 2025, in the amount of $1.06 million. After the Budget Study Session 1, Council approved Budget Strategy #2, that placed $1.06 million as assigned reserves in case the State doesn’t fulfill its obligation. However, the State’s Budget currently does not include any backfill amount. The VLF Backfill revenue is in constant jeopardy of not being received in future years. The City has joined the lawsuit against the State along with San Mateo County and other affected cities in pursuit of the withheld VLF revenues.

3. Sales Tax is projecting a slight decline with the mid-year revision, however going forward a modest increase of 2% for the next three years based on the most recent projections by HdL (the City’s Sales Tax consultant), followed by a 2.5% annual increase for the next seven years to consider the cyclical nature of these revenues driven by the local economy.

4. Measure Y is the ½ % voter-approved Transaction and Use Tax that went into effect on April 1, 2023. The same projection method is applied to Measure Y as the other regular 1% of Bradley Burns Local Sales and Use Tax mentioned above, assuming a 2% annual increase through FY 2028 and 2.5% for the future years. Measure Y transactions and use tax measure is scheduled to sunset in FY 2031-32 and the forecast reflects just one quarter’s worth of revenue.

5. Transient Occupancy Tax reflects the anticipated impacts of the City’s recently adopted shortterm rental (STR) regulations, which are expected to reduce TOT revenues by approximately due 102

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Packet Pg. 423 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) to a projected decline in both coastal and non-coastal STR renewals. The forecast includes these reductions and assumes modest growth in traditional lodging activity, resulting in a revised FY2026-27 baseline that increases by 2.5% annually through FY2028, followed by a 3% annual inflationary adjustment for the remainder of the forecast period.

6. Utility Users' Taxes (UUT) incorporates a mid-year revision to reflect increases in projected actuals due to increased UUT collected on rate changes across the various gas and electric tiers and variety of customers. Revenues in this category also assume a uniform 2.0% increase for all remaining years conservatively forecasted.

7. Other Taxes include business license tax, cannabis operations tax, and franchise tax. A modest

2.5% increase is projected for these tax categories in future years. However, this category was also affected by the Council’s recent ordinance changes related to STR regulations and a slight decrease in business license activity was incorporated. Cannabis tax revenue has a decline in the mid-year revision due to a reduction in cannabis operators.

8. For FY 2026-27 the General Fund received 100% of the Excess Educational Revenue Augmentation Fund (ERAF) revenues projected. This is a policy shift that started in FY 2025-26 deviating from the Council Policy of allocating only $145K of ERAF to the General Fund and splitting the rest of the ERAF funding 50% each between the Disaster Accounting Fund (Fund 238) and the Housing Action Fund (Fund 221). Given the ongoing structural deficit, the financial forecast keeps the current allocation in the General Fund in place through 2037.

9. Departmental or Program Revenues include building, planning, and other permits, recreation revenues, grants, and rentals. This category includes a 2% increase through 2028, and a 3.5% increase thereafter based on the anticipated continuation of the current service activity level, plus inflationary adjustments to the Wastewater Fund administrative service fee and an anticipated increase in investment income.

10. Operating Transfers in reflect a modest increase of 2% in the out years to account for the cost increases that drive this transfer relationship. This category mainly includes the cost recovery reimbursements from Fund 209 (Measure A).

Expenditures Assumptions

1. Salaries and Benefits (S&B) The FY 2026-27 proposed budget includes a full-time equivalent count of 202.50 Citywide. During this budget process Council made a one-time policy decision to unfund the allocation of $283k to the OPEB trust for FY 2026-27. The remaining years include a

4.0% increase to S&B annually to account for increases related to the cost of medical, dental, and vision benefits, PERS rates, and unfunded pension liability payments, merit, and other laborrelated increases. Future years include contributions to both the pension and OPEB trusts. The assumptions do not include a 5% salary savings starting with FY 2028-29, this budget strategy may be reviewed by Council during labor negotiations.

2. Contractual Services category assumes an annual increase of 2.0% for most City contracts to account for inflation in existing contracts. This is below the current CPI of 3%.

3. Materials, Supplies, and Maintenance category assumes a modest 1.5% increase each year to account for some inflation. This increase factor is well below the current CPI of 3%.

4. Operating Transfers Out Debt Service category is projected to be in accordance with the City’s updated debt service schedule for each projected year. These are the major debt service 103

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Packet Pg. 424 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) obligations included in financing: 2016 COP, 2019 POB, 2021 Civic Center, and the 2023 Fire Equipment Lease. A reduction of the debt payment starting with FY 2031 is related to the projected payoff for the Pension Obligation Bond.

5. Operating Transfers Out Allocations category accounts for transfers to Internal Service Funds, including the Risk Management funds for General Liability and Worker's Compensation insurance premiums and Motor Pool funds to cover motor pool operating expenditures. Also included in this category is an ongoing allocation to the motor pool vehicle replacement fund in order build up fund balance for future fleet replacement. The forecast shows a modest 1.5% increase each year to account for rising insurance premiums.

6. Capital Transfers Out category contains the approved allocation of $50k for the FY 2026-27 budget year. With no ongoing contribution to capital in the future years. 104

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Packet Pg. 425 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) City of Pacifica
Long Term Financial Forecast Table and Assumptions General Fund June 2026 for Adopted Budget Year Year Year Year Year Year Year Year Year Year Year 0 1 2 3 4 5 6 7 8 9 10 REVENUE 2026-2027 Proposed Budget 2027-2028 Projected
2028-2029 Projected2029-2030
Projected
2030-2031 Projected2031-2032 Projected2032-2033 Projected2033-2034 Projected2034-2035 Projected2035-2036 Projected2036-2037 Projected Property Tax 18,391,000 $ 18,942,700 $ 19,511,000 $ 20,096,300 $ 20,799,700 $ 21,527,700 $ 22,281,200 $ 23,061,000 $ 23,868,100 $ 24,703,500 $ 25,568,100 $ Vehicle License Fees 3,499,000 4,623,976 5,953,841 6,856,277 7,876,674 7,781,402 8,583,057 10,099,429 9,735,734 10,378,282 11,063,257 Curr Yr VLF 6,347,200 6,766,100 7,212,700 7,688,700 8,196,200 8,737,100 9,313,700 9,928,400 10,583,700 11,282,200 12,026,800 Curr Yr Shortfall (3,909,634) (5,011,999) (5,168,493) (5,844,422) (5,488,019) (6,800,120) (6,218,662) (6,629,091) (7,066,628) (7,533,009) (8,030,171) Prev Yrs Backfill* 1,061,013 2,869,875 3,909,634 5,011,999 5,168,493 5,844,422 5,488,019 6,800,120 6,218,662 6,629,091 7,066,628 Sales Tax 3,198,896 3,262,900 3,328,200 3,394,800 3,479,700 3,566,700 3,655,900 3,747,300 3,841,000 3,937,000 4,035,400 Measure Y 2,660,000 2,713,200 2,767,500 2,822,900 2,170,125 542,531 - - - - - Transient Occupancy Tax 2,750,000 2,716,300 2,784,200 2,853,800 2,939,400 3,027,600 3,118,400 3,212,000 3,308,400 3,407,700 3,509,900 Utility Users Tax 3,738,000 3,812,800 3,889,100 3,966,900 4,046,200 4,127,100 4,209,600 4,293,800 4,379,700 4,467,300 4,556,600 Other Tax - Franchise Tax 1,192,000 1,215,800 1,240,100 1,264,900 1,296,500 1,328,900 1,362,100 1,396,200 1,431,100 1,466,900 1,503,600 Other Tax - Business License Tax 597,000 606,300 618,400 630,800 646,600 662,800 679,400 696,400 713,800 731,600 749,900 Other Tax - Cannabis Tax 700,000 714,000 728,300 742,900 757,800 773,000 788,500 804,300 820,400 836,800 853,500 Excess ERAF 3,900,000 3,958,500 4,017,900 4,078,200 4,139,400 4,201,500 4,264,500 4,328,500 4,393,400 4,459,300 4,526,200 Department/Program Revenues 12,826,001 12,813,426 13,076,900 13,332,800 13,715,400 14,109,200 14,514,500 14,931,700 15,361,200 15,803,300 16,258,300 Intergovernmental 2,602,568 2,558,601 2,609,800 2,662,000 2,741,900 2,824,200 2,908,900 2,996,200 3,086,100 3,178,700 3,274,100 Investment Earnings 1,110,600 1,127,300 1,144,200 1,161,400 1,178,800 1,196,500 1,214,400 1,232,600 1,251,100 1,269,900 1,288,900 Charges for Services 9,100,258 9,140,100 9,322,900 9,509,400 9,794,700 10,088,500 10,391,200 10,702,900 11,024,000 11,354,700 11,695,300 Transfers In 450,000 459,000 463,600 468,200 477,600 487,200 496,900 506,800 516,900 527,200 537,700 Total Annual Revenue $ 55,851,477 53,889,322 $ 58,379,041 $ 60,508,777 $ 62,345,099 $ 62,135,633 $ 63,954,057 $ 67,077,429 $ 68,369,734 $ 70,718,882 $ 73,162,457 $ Revenue Year-to-Year 0.45% 3.64% 4.53% 3.65% 3.03% -0.34% 2.93% 4.88% 1.93% 3.44% 3.46%

EXPENDITURES
2026-2027 Proposed Budget
2027-2028 Projected 2028-2029 Projected 2029-2030
Projected
2030-2031 Projected 2031-2032 Projected 2032-2033 Projected 2033-2034 Projected 2034-2035 Projected 2035-2036 Projected 2036-2037 Projected S&B 38,254,739 41,601,650 43,265,716 44,996,344 46,796,198 48,668,046 50,614,768 52,639,359 54,744,933 56,934,730 59,212,119 Salary Savings** (2,080,082) (1,565,517) - - - - - - - - - Salaries & Benefits 39,521,567 36,689,222 43,265,716 44,996,344 46,796,198 48,668,046 50,614,768 52,639,359 54,744,933 56,934,730 59,212,119 Contract Services 9,336,756 9,523,500 8,521,375 9,714,000 9,956,900 10,205,800 10,460,900 10,722,400 10,990,500 11,265,300 11,546,900 Material/Supplies/Maintenance 4,852,255 4,925,000 4,423,132 4,998,900 5,098,900 5,200,900 5,304,900 5,411,000 5,519,200 5,629,600 5,742,200 Transfers Out - Debt Service 2,524,729 2,451,650 2,551,906 2,389,115 1,311,744 1,302,631 1,091,016 1,061,956 1,061,990 1,046,457 1,022,019 Transfers Out - Allocations 1,896,000 1,924,400 1,953,300 1,982,600 2,012,300 2,042,500 2,073,100 2,104,200 2,135,800 2,167,800 1,803,943 Total annual operating Expenditures $ 58,131,307 53,889,322 $ 62,190,522 $ 64,051,660 $ 65,146,342 $ 67,389,677 $ 69,514,083 $ 71,907,815 $ 74,420,823 $ 77,011,887 $ 79,691,039 $ Transfers Out - Capital 50,000 - - - - - - - - - - Total General Fund Expenditures $ 58,131,307 53,939,322 $ 62,190,522 $ 64,051,660 $ 65,146,342 $ 67,389,677 $ 69,514,083 $ 71,907,815 $ 74,420,823 $ 77,011,887 $ 79,691,039 $ Exp Year-to-Year -0.98% 7.77% 6.98% 2.99% 1.71% 3.44% 3.15% 3.44% 3.49% 3.48% 3.48% Reserves to cover VLF Reduction per Budget Strategy #2 GF Structural Surplus/Deficit $ (2,279,830) (0) $ (3,811,481) $ (3,542,883) $ (2,801,243) $ (5,254,044) $ (5,560,026) $ (4,830,385) $ (6,051,089) $ (6,293,006) $ (6,528,582) $ Surplus/Def as % of GF Revenues 0.00% -4.08% -6.53% -5.86% -4.49% -8.46% -8.69% -7.20% -8.85% -8.90% -8.92% Beginning Fund Balance 21,763,802 21,813,802 19,483,972 15,672,491 12,129,608 9,328,365 4,074,321 (1,485,705) (6,316,091) (12,367,179) (18,660,185) Total Revenues 55,851,477 53,889,322 58,379,041 60,508,777 62,345,099 62,135,633 63,954,057 67,077,429 68,369,734 70,718,882 73,162,457 Total Expenditures 58,131,307 53,939,322 62,190,522 64,051,660 65,146,342 67,389,677 69,514,083 71,907,815 74,420,823 77,011,887 79,691,039 Projected Ending Fund Balance $ 19,483,972 21,763,802 $ 15,672,491 $ 12,129,608 $ 9,328,365 $ 4,074,321 $ (1,485,705) $ (6,316,091) $ (12,367,179) $ (18,660,185) $ (25,188,767) $ Non-Spendable 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 Restricted 1,085,133 917,633 1,252,633 1,420,133 1,587,633 1,755,133 1,922,633 2,090,133 2,257,633 2,425,133 2,592,633 Assigned Reserves Policy Level of 10% of Expenditures 5,813,131 5,388,932 6,219,052 6,405,166 6,514,634 6,738,968 6,951,408 7,190,781 7,442,082 7,701,189 7,969,104 VLF Restriction Budget Strategy - 1,061,013 - - - - - - - - - Facility Maintenance & Replacement 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 205,000 Compensated Absences 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 Child Care Reserve 488,591 488,591 488,591 488,591 488,591 488,591 488,591 488,591 488,591 488,591 488,591 Legal Reserves 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 Assigned Reserves 6,806,722 7,443,536 7,212,643 7,398,757 7,508,225 7,732,559 7,944,999 8,184,372 8,435,673 8,694,780 8,962,695 Non-Spendable, Restricted & Assigned 7,916,855 8,386,169 8,490,276 8,843,890 9,120,858 9,512,692 9,892,632 10,299,505 10,718,306 11,144,913 11,580,328 Unassigned Fund Balance $ 11,567,117 13,377,633 $ 7,182,215 $ 3,285,718 $ 207,507 $ (5,438,370) $ (11,378,338) $ (16,615,596) $ (23,085,486) $ (29,805,098) $ (36,769,095) $ Unassigned balance as % of Op. Exp. 24.80% 19.90% 11.55% 5.13% 0.32% -8.07% -16.37% -23.11% -31.02% -38.70% -46.14% GFOA Recommended Reserves 9,688,551 8,981,554 10,365,087 10,675,277 10,857,724 11,231,613 11,585,681 11,984,636 12,403,470 12,835,315 13,281,840 Above/(Below) GFOA Guidelines 1,878,566 4,396,079 (3,182,872) (7,389,558) (10,650,217) (16,669,983) (22,964,018) (28,600,232) (35,488,956) (42,640,412) (50,050,935) * If VLF lobbying efforts fail, the entirety of the backfill revenue will be at jeopardy, and thus be adding to the deficit. ** Salary Savings for FY 2025-26 Mid-Year Revised is 2.2% as the deficit from VLF revenue reductions was supplemented by reserves in accordance with Budget Strategy #2. Actual salary savings used in outyears is subject to Council policy as part of labor negotiations. 105

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Packet Pg. 426 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) 2023-24 Actual 2024-25 Actual
2025-26
Revised
Budget
2026-27
Proposed
Budget
$ 39,584,040 37,262,144 $ 43,340,180 $ 44,128,875 $
$ 1,763,472 1,573,534 $ 2,147,000 $ 2,794,192 $
$ 6,886,870 5,865,126 $ 5,403,024 $ 5,167,949 $
$ 429,695 518,408 $ 529,196 $ 560,099 $
$ 1,459,484 623,094 $ 439,600 $ 443,996 $
$ 447,622 650,968 $ 311,100 $ 344,211 $
$ 1,422,000 1,291,900 $ 1,478,800 $ 450,000 $
Total General Fund Rev. $ 51,993,184 47,785,173 $ 53,648,900 $ 53,889,322 $ City of Pacifica
FY 2025-26 Budget
General Fund Revenues By Department
Revenues
General Government
Community Development
PB&R
Police Dept
Fire Dept
Public Works
Non-Departmental
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
$50,000,000
2023-24 Actual 2024-25 Actual 2025-26 Revised Budget 2026-27 Proposed Budget 106

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Packet Pg. 427 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) 2023-24
Actual 2024-25 Actual
2025-26
Revised
Budget
2026-27
Proposed
Budget
General Government 5,968,174 $ 6,348,710 $ 8,381,006 $ 8,016,462 $ Community Development 3,459,001 $ 4,270,147 $ 6,106,335 $ 5,767,773 $ PB&R 5,826,007 $ 6,345,412 $ 7,133,895 $ 6,856,979 $
Police Dept 12,146,108 $ 12,810,554 $ 13,972,728 $ 14,486,747 $ Fire Dept 7,968,230 $ 9,005,596 $ 8,680,659 $ 9,448,932 $ Public Works 4,737,311 $ 4,937,157 $ 5,587,474 $ 5,287,531 $ Non-Departmental 5,824,354 $ 4,380,409 $ 5,341,050 $ 5,640,415 $ Total General Fund Exp. $ 48,097,986 45,929,185 $ 55,203,147 $ 55,504,839 $ City of Pacifica
FY 2025-26 Budget
General Fund Expenditures By Department
Expenditures
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
2023-24 Actual 2024-25 Actual 2025-26 Revised Budget 2026-27 Proposed Budget 107

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Packet Pg. 428 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) City of Pacifica
FY 2026-27 Budget
General Fund Revenues By Department
General Fund Expenditures By Department
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Packet Pg. 429 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
Department Work Programs

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Packet Pg. 430 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

THIS PAGE IS INTENTIONALLY
BLANK
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Packet Pg. 431 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Department Work Programs
The Department Work Program offers an in-depth look at the City’s individual departments, detailing their achievements from the previous fiscal year and summarizing future plans.

Each department has articulated its mission, outlining the driving force behind its operations and a description of its responsibilities. The department pages include overviews of staffing levels, service priorities, and budget highlights. General fund financials provide insights into the anticipated financial status and a review of previous fiscal years' general fund revenues and expenditures. To guide and support departments in achieving their goals, strategies are developed based on the City Council’s comprehensive Strategic Plan. This plan includes the City’s Mission, Vision, Values, and Goals, along with detailed Strategies for achieving these goals. In alignment with the Strategic Plan, departments formulate their goals to reflect the priorities set by the City Council. Each department has highlighted which goal aligns most with the City Council's Strategic Plan goals.

City Council Strategic Plan – 2023 to 2030
The Strategies listed under each Goal below are the City Council’s initial priorities to ensure progress on achieving the Strategic Plan while recognizing the ongoing services, management and non-discretionary work that consume most City resources.

1. Enhance organizational and fiscal stability.

A. Improve staff retention, recruitment, mental health and wellness resources, and increase staffing for rising workloads.

B. Pursue possible tax, bond and other revenue opportunities, including tobacco and cannabis licensing.

C. Implement the Economic Development Workplan.

D. Prepare the Cost Allocation Plan and conduct the Development Impact Fee and Master Fee Studies, and consider provision of in-house building official and plan check services.

E. Increase public education about the City’s organizational capacity and fiscal needs.

2. Improve and steward City infrastructure, streets, and facilities.

A. Complete selected stormwater and flooding improvements citywide.

B. Advance the Beach Boulevard Resiliency Project, Esplanade Protection, and the Pier.

C. Complete the Facilities Assessment Study.

Referral of park bathroom need to CIP, Parks or Facilities Studies, and/or WorkPlan 111

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Packet Pg. 432 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

3. Prioritize protection and development of affordable housing.

A. Identify and advance viable affordable housing projects.

B. Fully implement the Short-Term Rental Ordinance.

C. Prioritize Housing Element program implementation and interim housing solutions.

4. Pursue climate change adaptation and mitigation.

A. Begin implementation of the Climate Action and Adaptation Plan.

B. Adopt a 25% urban forest canopy goal, complete the urban forestry plan and inventory, and prioritize revising ambiguous language related to tree health.

C. Begin implementation of Pacifica’s Local Coastal Plan and continue collaborations with the California Coastal Commission.

5. Broaden public communications and collaboration.

A. Creatively engage community expertise, advocates and volunteers to advance City priorities.

B. Increase communications, education, and connections
for community wellness resources.

C. Broaden community awareness of the Library projects.

D. Improve coordination and collaboration between the City Council and local and regional commissions, boards and committees.
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Packet Pg. 448 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) 128

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Packet Pg. 449 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) 129

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Packet Pg. 450 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) 130

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Packet Pg. 451 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) 131

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Packet Pg. 452 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) 132

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Packet Pg. 453 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) City Council
Mission
The City of Pacifica provides exceptional services, maintains the small-town feel and safety of its unique community, and stewards its environment, coastal beauty, and recreational opportunities.

Description
The City Council is the governing body of the City. It provides community leadership, establishes policies that reflect the needs, wishes, and priorities of the community of Pacifica and enacts laws and adopts resolutions and ordinances. The Mayor and City Council represent the City on various local, regional, and state policy committees and commissions. The City Council appoints the City Manager, who is the City's chief executive and is responsible to the City Council for the proper and efficient management of all municipal activities. The City Council also appoints the City Attorney, who advises the City Council on all legal matters. The City Council meets the second and fourth Monday of each month in formal public session and occasionally in additional special meetings, study sessions and closed sessions.

Staffing
The Council is composed of five members who are elected by district for four-year staggered terms. The Mayor is appointed annually from among the elected Council members.

Service Priorities
Deliberate on all matters brought before the City Council at its public meetings, and making decisions relative to those matters, while striving to meet the goals of the Strategic Plan.

Establish priorities for the Pacifica municipal government’s Strategic Plan goals.

Allocate financial resources necessary to meet priorities and goals to provide community services.

Budget Highlights / Summary of Changes
The budget continues to support the department’s core functions and strategic initiatives with minor adjustments for inflationary or operational needs. As part of the Citywide initiative to get close the gap on the budget deficit, Council recommended a decrease across each Council member’s conference registration budgeted line-item. This is a onetime decrease to the City Council’s budget for FY 2026–27.

Fiscal Year 2025-26 Accomplishments
Completed recruitment and approved employment agreement wtih new City Manager.

Received Certification of the Adopted the Revised 2023-2031 Housing Element of the General Plan. (Goal #3)
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Packet Pg. 454 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Completed Major Capital Projects, including Anza Pump Station Rehabilitation and Repair Project, Lower Linda Mar Sewer Rehabilitation and Repair Project, Esplanade Palmetto Bicycle & Pedestrian Improvement Project.

Civic Center Campus Renovation project received Project of the Year award from American Public Works Association (APWA) Silicon Valley 2025 Award Program. (Goal #2)
Initiated installation of Solar Photovoltaic System at Pacifica Civic Center. (Goals #1 & 4)
Rose AI, an AI-powered virtual assistant, integrated into the City’s website to improve access to public information, received the 2025 Helen Putnam Award for Excellence from CalCities in the Internal Administration Category, the Innovation Award from the Municipal Information Systems Association of California (MISAC), and the 2025 Polimorphic Service-First Award. (Goal #5) Expansion of Temporary Safe Parking Program in partnership with the Pacifica Resource Center to add use of spaces at San Francisco RV Resort. (Goal #3) Progress on the Beach Boulevard Infrastructure Resiliency Project. (Goal #2) Completed Surplus Lands Act and Released RFQ / RFP for development for Cityowned property at Montecito Avenue and Beach Boulevard. (Goal #1) Completed Video and Marketing materials to promote Pacifica with ICMA-TV to promote Pacifica as “Thriving into the Future” and “Rich with Opportunity” Continued strong participation in the San Mateo County Mayors Mental Health Initiative (Goal #5)
Implementation of the Revised Short-Term-Rental Ordinance in non-Coastal Zone.

Maintained strong focus on the Adopted City of Pacifica Strategic Plan for 2023 to 2030, including the mission, vision, values, goals and strategies.

Fiscal Year 2026-27 Goals / Strategic Priorities
Enhance organizational and fiscal stability – improve staff retention, recruitment, mental health and wellness resources, and increase staffing for rising workloads; pursue possible tax, bond, and other revenue opportunities; prioritize implementation of Economic Opportunities Study; and prepare the Cost Allocation Plan and conduct the Development Impact Fee and Master Fee Studies. (Goal #1) Complete RFQ/ RFP process and the next steps in development of the 2212 Beach Blvd, and other key economic and housing development initiatives.

Improve and steward City infrastructure, streets and facilities – complete selected stormwater and flooding improvements citywide; advance the Beach Boulevard Resiliency Project, Esplanade Protection, and the Pier; broaden community awareness of the Library projects; complete a Facilities Assessment and prioritize the City’s facilities and equipment needs, including public safety, the Community Center, and other parks and recreation resources. (Goal #2) Prioritize protection and development of affordable housing – prioritize Housing Element program implementation and continue with implementation of updated Short-Term Rental Ordinance. (Goal #3)
Pursue climate change adaptation and mitigation – continue with implementation of the Climate Action and Adaptation Plan; continue the urban forestry plan, tree 134

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Packet Pg. 455 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) canopy goals, inventory and projects; certify and implementation of Pacifica’s Local Coastal Plan and continue collaborations with the California Coastal Commission. (Goal #4)
Broaden public communications and collaboration, including creatively harnessing community expertise, advocates and volunteers to advance City priorities and increasing communications, education, and connections for community wellness resources. (Goal #5)
135

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Packet Pg. 456 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET

CITY COUNCIL
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Expenditures
Salaries & Benefits 141,545 $ 130,302 $ 122,000 $ 122,000 $ Contractual Services - $ - $ 10,200 $ - $
Material/Supplies/Maintenance 56,097 $ 67,644 $ 81,352 $ 90,825 $ Total Expenditures 197,641 $ 197,946 $ 213,552 $ 212,825 $ Full-Time Equivalent Employees 5.00 5.00 5.00 5.00
FY2023-24
Actuals
FY2024-25
Actuals
FY2025-26
Actuals
FY2026-27
Goals
Performance Measures
Number of City Council Meetings Held 38 33 41 36
Number of Ordinances Approved 5 3 6 4
Number of Resolutions Approved 130 86 91 80
$-
$50,000
$100,000
$150,000
$200,000
$250,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/Maintenan
ce
Contractual Services
Salaries & Benefits
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Packet Pg. 457 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) City Manager's Office
Mission
The mission of the City Manager's Department is to provide effective leadership for the City, execute Council policy direction, and ensure that the City's policies and services are administered fairly to the residents and businesses of Pacifica, with excellent customer service, and prudent stewardship of tax revenues and other resources in support of a vibrant community with a broad range of public services and complex infrastructure.

Description
The Department provides overall executive leadership and direction of City operations and oversight of City Departments. The City Manager is the City's chief executive and is responsible to the City Council for the proper and efficient management of all municipal activities. The City Manager advises the Council on the City's planning and financial needs, as well as other municipal matters, implements all laws and ordinances, manages City facilities, prepares and manages the budget, carries out the City's business, and administers the policies of the Council. The City Manager directs and coordinates the various departments and municipal services through appointed department directors who directly supervise and administer the various staff and operational elements of the City.

Staffing
The City Manager's Office is comprised of a City Manager, Assistant City Manager, Economic and Housing Development Manager, Economic and Housing Development Specialist, Management Analyst, City Clerk, Deputy City Clerk, and Executive Assistant.

Service Level Changes
The City Manager’s Office and all divisions will continue to provide executive oversight and leadership to ensure the effective implementation of City Council priorities and delivery of high-quality public services.

Budget Highlights / Summary of Changes
As part of the FY 2026–27 Budget, the City Manager’s Office, City Clerk’s Office and the Economic and Housing Development Department identified reduction options equal to approximately 5% of their operating budgets. Through careful review process, these reductions were identified throughout various budgeted line-items. The budget maintains support for core functions, with modest adjustments to account for inflationary pressures and continued investment in strategic, revenue-generating initiatives.

City Manager's Office
Service Priorities
Oversee the delivery of public services in accordance with all federal and state laws and the policies, ordinances, and resolutions adopted by the City Council.

Direct and organize City departments, programs, and services.

Carry out City Council Strategic Plan.
137

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Packet Pg. 458 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Recommend adoption of policies and ordinances as necessary.

Ensure the long-term fiscal viability of the City.

Increase productivity, efficiency, and effectiveness of the organization.

Oversee public information, customer service, legislative advocacy and community engagement. Advise the City Council on matters regarding current and future fiscal, staffing, and program needs of the City.

Enforce contracts, agreements, and permits authorized by the City Council.

Fiscal Year 2025-2026 Accomplishments
Continued progress on all Strategies in the Council Strategic Plan. (Goals #1-5) Completed Council Strategic Planning Update process and development of a balanced budget for FY2025-26. (Goal #1)
Increased public engagement on major initiatives. (Goal #5) Increased inter-agency collaboration.

Continued to refine award winning Rose AI, an artificial intelligence platform, and managed it on the City’s website as an AI-powered search engine and virtual assistant to provide public information on City services and regulatory requirements. (Goal #2)
Made progress on state and federal fund-raising and revenue source protection efforts. (Goal #1)
Fiscal Year 2026-2027 Goals / Strategic Priorities
Continue to provide efficient, cost-effective delivery of public services and advance the implementation of the Council’s Strategic Plan. (Goals #1-5) Ensure implementation of the FY 2026-27 Workplan.

Complete the surplus land process and next steps for development of 2212 Beach Blvd Site. (Goal #2)
Promote Housing as Economic Infrastructure to collaborate with developers and regional partners to incentivize housing development in alignment with housing production goals. (Goal #3)
Implementation of new Agenda Management Software (Granicus OneMeeting) with integrated meeting video for City Council and Planning Commission meetings. (Goal #2)
Continue moving forward with critical infrastructure CIP projects. (Goal #2) City Clerk
Mission
The mission of the City Clerk Department is to promote openness in government. The City Clerk's Office is committed to serving the citizens of our community in a neutral and ethical manner by providing equal access to open and transparent government, ensuring the integrity of the participatory process, bridging internal and external communication pathways, and enhancing the public's trust in local government. 138

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Packet Pg. 459 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Description
The City Clerk Department conducts regular and special general municipal elections in consolidation with the County of San Mateo for the election of City Councilmembers and local initiatives, referendums, and recalls. The Department administers Political Reform Act requirements related to campaign disclosure statements, conflict of interest filings, and AB1234 ethics training. Brown Act requirements are administered by the City Clerk Department, ensuring meetings, agendas, minutes, reports, public notices, resolutions, and ordinances are prepared, posted, and published pursuant to law. The City Clerk serves as Clerk of the Council and attends, monitors, and retains complete records of all City Council proceedings. The City Clerk ensures open and transparent access through records-related services, including records management, retention, and Public Records Act programs. Additionally, the City Clerk Department administers the boards and commissions program related to vacancies, orientation, commission handbook, and Maddy Act compliance. The City Clerk serves as the City's Elections Official, Political Reform Act Filing Officer, Records Manager, and Compliance Officer.

Service Priorities
Provide City Council support, including agenda and packet preparation, public noticing, and distribution of materials to the City Council, staff, and the public.

Support City committees and commissions, including recruitment for vacancies and expiring terms, new member onboarding, and support staff liaisons to the committees and commissions related to agenda and packet preparation and distribution of materials to Commissioners, staff, and the public.

Process local legislation, including resolutions, ordinances, and minutes.

Oversee elections, including qualifying candidates, petitions, and ballot measures, processing all necessary resolutions, monitoring campaign filing requirements, and certifying election results.

Maintain records and archives, including responses to public records requests.

Fiscal Year 2025-26 Accomplishments
Processed 6 ordinances, 91 resolutions, 22 City Council Regular Meetings and Agenda Packets, 19 City Council Special Meetings and Study Sessions and Agenda Packets, 27 Proclamations, and 337 public records requests.

Managed the City's agenda management software and Public Records Request software, including making updates as needed, and provided training to staff.

Continued process for implementation and transition to a new agenda management software that will include City Council, Planning Commission and all City Committees and Commissions in a single platform and include video integration functionality for City Council and Planning Commission meetings.

Managed vacancies and appointments to all City Committees and Commissions. -Continued the process for the review of charters and Council-adopted resolutions to update the charters for the following City committees / commissions and held Joint Study Sessions with City Council for: Beautification Advisory Committee and Emergency Preparedness & Safety Commission.
139

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Packet Pg. 460 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Fiscal Year 2026-2027 Goals / Strategic Priorities
Facilitate completion of updated to City committee and commission charters as directed by City Council: Beautification Advisory Committee and Emergency Preparedness & Safety Commission. Facilitate initiation of review of Commission Charters: Parks, Beaches & Recreation Commission and Planning Commission. (Goal #5)
Conduct regular monthly Library Advisory Committee meetings and subcommittee work to continue public information outreach regarding the Libraries Modernization Project. (Goal #5)
Continue Non-Discretionary Tasks for day-to-day reporting mandates in the City Clerk’s Office, e.g. timely delivery of responses to Public Records Act Requests, meeting coordination including publication and posting of agendas, execution of Resolutions and Ordinances. (Goal #1)
Continue efforts for digitizing records and use of Laserfiche system as document repository, enable public portal for access to past City Council Meeting Agendas and Minutes. (Goal #1)
Implement new Agenda Management Software product (Granicus OneMeeting) that provides for integrated meeting video for City Council and Planning Commission meetings and incorporates City committees / commissions for agenda and minutes management and publication and review administrative tasks for operational and staffing efficiencies in coordination with enhanced functionality enabled by Agenda Management software (e.g. facilitating transition to Action style Minutes). (Goal #1)
Review Committee / Commission administration for potential operational efficiencies (e.g. aligning expiring terms for recruitments on an annual basis) (Goal #1)
Economic and Housing Development
Mission
The mission of the Economic and Housing Development Division is to improve the economic well-being and quality of life for a community by creating jobs, growing businesses, and increasing the tax revenue base through strategic planning, development, investment and partnerships to make Pacifica as a great place to live, work and play.

Description
The Economic and Housing Development Division supports the City’s economic vitality by promoting business retention, expansion, and attraction. The Economic Development Division serves the City's business community to support existing businesses and commercial property owners by providing accurate, practical, and timely information, connecting businesses with resources, serving as liaison with local business groups, supporting the Economic Development Committee, and supporting the interdepartmental activities and programs that drive commercial revitalization, mixed-use and housing development and sustainable economic growth, benefitting businesses and the entire community.
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Packet Pg. 461 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Service Priorities
Expand and diversify the City's revenue base to improve the City’s fiscal sustainability and local economy
Retain, expand, and attract desirable businesses and jobs Promote and market Pacifica as a vibrant overnight and visitor destination Identify, evaluate and deliver projects that provide fiscal and economic benefits to the community
Support businesses in navigating expansion, permitting, and growth opportunities Strategically manage City-owned land and building assets to advance long-term development goals
Advance housing development, particularly mixed-use and workforce housing, as a key driver of economic vitality and community sustainability Fiscal Year 2025-2026 Accomplishments
Developed a comprehensive Economic and Housing Development Workplan to include all recently conducted plans, programs, economic studies and strategies and which serves as a guide for all Economic Development shortand long-term work Continued implementation of the Economic Opportunities Study short and medium-term goals, including completing the SLA process, releasing an RFQ and conducting interviews of appraisal and preparation of the Beach Blvd site, and starting the SLA process (Goal #1)
Re-engaged property owners and merchants at Pacific Manor Shopping Center regarding the condition of the center and future plans for the properties (Goal #1, 5)
Assisted Economic Development Committee with the execution of its Wayfinding Signage pilot
Worked with Public Works Department to order and install grant-funded trash cans along retail corridors in Sharp Park (Goal #1)
Compiled vacant property sites data in Sharp Park and started to engage with property owners regarding repurposed uses (Goal #1)
Initiated conversations with City of Pacifica regarding Sharp Park Golf Course (Goal #1)
Developed Pacifica marketing data materials for retailers and brokers for ICSC conference and related outreach (Goal #1)
Initiated development of high-quality small business photography library for use in broker outreach and investor recruitment (Goal #1)
Analyzed sales leakage from Pacifica to neighboring jurisdictions (Goal #1) Analyzed tax data / performance by business district to see trends and begin to inform targeted attraction and business retention strategies (Goal #1) Explored internship partnerships and technology solutions to enhance social media presence and expand digital engagement capacity for visibility, community events and promotions, and visitor awareness (Goal #1) 141

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Packet Pg. 462 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Completed revamp of the Visit Pacifica website to increase marketing analytics capabilities and enhance ROI. Began collaboration with the SF Peninsula partner to better position Pacifica within the Pacifica Tourism Marketing District (PTMD) to maximize visitor-serving impact (Goal #1)
Created plan to build relationships with media outlets and pitch tourism/small business stories to increase media exposure to elevate Pacifica’s image as a coastal destination and business-friendly community (Goal #1, #5) Explored seasonal events to explore scalable event concepts that increase foot traffic and support small business revenue, with plans to revisit this item in future years with the assistance of an events planner consultant. (Goal #1) Continued engagement with business stakeholders and key commercial districts (Rockaway, Seaside Merchants Association, Linda Mar, etc.) to address operational concerns, identify opportunities for reinvestment and improved vitality (Goal #1)
Created plan to work with EDC to promote County and Renaissance-led business education sessions to improve long-term viability and competitiveness (Goal #1)
Finalized bike rack installation plan to improve accessibility and connectivity to commercial areas, supporting increased customer traffic (Goal #1) Drafted clearer public-facing permitting resources (e.g., “Before You Sign a Lease,” “Guide to Permitting”), which, once finalized, will improve transparency and reduce common barriers (Goals #1, #5)
Made a plan to explore self-serve counter and improved development transparency tools to improve customer experience and reduce processing delays (Goal #1)
Initiated cross-departmental coordination and developer liaison support to integrate the economic development considerations in planning discussions Participated in regional platforms to advertise unfunded capital projects to attract external funding and private investments (Goal #1) Continued the “Shop Pacifica” e-gift program to support the 50 participating merchants Pacifica (Goal #1)
Continued Business Visitation Program, visiting over 100 businesses in all 5 City Council districts. (Goal #1)
Continued ongoing networking and educational events for small businesses and connecting them to local and regional resources through Renaissance Center and San Mateo Small Business Development Center. (Goals #1,5) (Goal #5)
Recognized small businesses and their importance to the local economy during “Small Business Month” in May. (Goals #1 and 5)
Continued “Business Matters” e-newsletter and an ongoing monthly publication and effective communication channel with Pacifica businesses to help build, connect, and benefit the business community. (Goal #5)
Helped promote events in Business Districts, including Second Saturday street fairs in Sharp Park, Earth Day in Linda Mar, Pride Festival on Palmetto, Tree 142

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Packet Pg. 463 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Lighting in Rockaway Beach, Dog Surfing Contest in Linda Mar State Beach and Art Fairs at Sanchez Art Center. (Goals #1,5)
Continued to assist local merchants with the permitting process. (Goals #1,5) Continued to assist new businesses with the permitting process. (Goals #1, 5) Worked with local shopping district management companies to help recruit new businesses to their available spaces. (Goals #1,5)
Selected a new nonprofit organization to manage the Pacifica Tourism Marketing District (PTMD) and assisted in onboarding and kickoff of its PTMD management. (Goals #1,3,4,5)
Assisted the Economic Development Committee in the implementation of their work plan. (Goals #1, 5)
Fiscal Year 2026-2027 Goals / Strategic Priorities
At its February 23, 2026 meeting, City Council reviewed the Economic and Housing Development Department’s FY 2026- 27 Workplan, which is summarized below:

Catalyst Projects & Opportunity Sites
o 2212 Beach Boulevard - Negotiate transaction terms and development agreements; initiate environmental review
o Pacifica Manor Shopping Center: Continue engagement with property owners; explore investor interest aligned with Housing Element and General Plan
o Continue beautification and activation of economic vibrancy efforts, engage investors/developers consistent with Housing Element designations, continue discussions regarding Sharp Park Golf Course economic opportunities
o Other Commercial Areas: 1) Strengthen broker relationships, 2) track vacancies and building conditions, 3) conduct a feasibility study of potential financing tools: Property and Business Improvement Districts (PBID), Enhanced Infrastructure Financing Districts (EIFD), and Community Facilities Districts (CFD) to support infrastructure improvements and catalyze private investment in priority areas. Due to budget and staffing constraints, this Workplan item will be deferred to FY 2027-28.

Business Attraction
o Continue coordinated marketing and media outreach efforts to sustain visibility in regional tourism and retail markets
o Strengthen relationships with retailers and brokers to maintain active engagement to ensure Pacifica remains competitive in site selection discussions and filling commercial vacancies
o Coordinate tourism events regionally and cross-jurisdictionally (e.g., Half Moon Bay collaboration) to expand visitor draw and shared marketing impact
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Packet Pg. 464 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) o Support signature community events, including Fogfest, Tree Lighting, and seasonal programming to reinforce the community identity and impact on small businesses
Business Retention
o Fully implement Business Visitation Program to transition from policy adoption to measurable performance tracking and outcomes reporting o Explore formation of a Property-Based Business Improvement District (PBID) to evaluate whether this self-assessment district tool could provide sustainable funding for commercial improvements and marketing in Rockaway and Sharp Park. Due to budget and staffing constraints, this Workplan item will be deferred to FY 2027-28.
o Continue technical assistance partnerships (Small Business Development Center, Renaissance Center, Workforce Development Board) to enhance business resilience and workforce capacity
o Expand connectivity and pedestrian improvements supporting commercial areas to increase foot traffic, ensure safety and support long-term commercial performance
Planning, Analysis & Policy Development
o Continue coordination with Planning/Community Development on Housing Element priority sites to align entitlement processing and infrastructure planning to facilitate planned housing development
o Evaluate financing mechanisms such as Enhanced Infrastructure Financing Districts (EIFDs), Community Facilities Districts (CFDs), and related financing tools to assess the City’s capacity to establish financing districts that align land use policy with infrastructure funding strategies and long-term fiscal sustainability goals (coordinates with Goal 1 above). Due to budget and staffing constraints, this Workplan item will be deferred to FY 2027-28.
o Pursue grant opportunities for infrastructure and commercial corridor improvements to reduce General Fund exposure while advancing capital investments.

Risk Management
Mission
The mission of Risk Management is to enhance safety and protect citizens, employees, and assets of the City by fostering a culture of proactive risk management to effectively 144

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Packet Pg. 465 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) forecast, control, and mitigate the City’s risk through effective loss prevention, claims management, and risk financing.

Description
The Risk Management Department is comprised of two programs: General Liability and Workers Compensation. Risk Management implements safety policies, best practices, and procedures to mitigate the City’s risk exposure. The Risk Management Program protects City assets, provides liability insurance and claims management services, and promotes the safety and well-being of City employees. The program includes managing liability, property and auto claims, and insurance programs. It also develops risk reduction policies and procedures and ensures compliance with the City’s risk management operational best practices as enforced by the Pooled Liability Network Joint Powers Authority (PLAN JPA), and safety standards and regulations as defined by OSHA and the City’s Injury and Illness Prevention Program (IIPP). The budget is provided in the General Liability and Workers Compensation internal service funds and accounts for premiums as well as any settlements resulting from claims against the City.

Service Priorities
Ensure the City has adequate insurance coverage for its operations.

Undertake and complete timely claims management.

Promote policies and programs to reduce risk exposure.

Develop safety programs and initiatives to promote Occupational Health and Safety, prevent accidents, and reduce accidental losses within the offices and departments, and ensure compliance with applicable safety regulations.

Provide resources to all departments related to various safety topics to protect the safety and well-being of city staff.

Risk Management 2025-2026 Accomplishments
Continued to process General Liability and Workers' compensation claims in a timely manner and continued holding quarterly claims reviews with the insurance pools so that claim expenses and legal costs can be minimized (Goal #1).

Continued to comply with OSHA standards, regulations, and requirements to prevent work-related injuries and illness (Goal #1).

Continued to work with the City’s trusted claims servicer to enhance and ensure service values (Goal #1).

Fiscal Year 2026-2027 Goals and Strategic Priorities
Continue to support the Council's Strategic Goals and Priorities as they relate to the Risk Management Program (Goal #1).

Form a Risk Management Committee to identify, mitigate, and reduce risks to the City and hold regular meetings (Goal #1).

Provide citywide training for employees and supervisors on the City’s Risk Management Program and Workers' Compensation procedures (Goal #1). 145

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Packet Pg. 466 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Continue to process General Liability and Workers' Compensation claims in a timely manner and hold quarterly claims reviews with the insurance pools to minimize claim expenses and legal costs (Goal #1,2).

Continue to comply with OSHA standards, regulations and requirements to prevent work-related injuries and illness (Goal #1).

Apply for Risk Management Grant funding (Goal #1).
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Packet Pg. 467 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA

CITY MANAGER'S OFFICE
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Expenditures
Salaries & Benefits 1,893,259 $ 1,495,721 $ 1,789,138 $ 1,856,908 $ Contractual Services 541,335 $ 526,804 $ 955,899 $ 706,451 $ Material/Supplies/Maintenance (367,767) $ 187,857 $ 184,819 $ 342,095 $ Total Expenditures 2,066,828 $ 2,210,381 $ 2,929,856 $ 2,905,454 $ Full-Time Equivalent Employees 6.50 7.50 8.50 8.00
FY2023-24
Actuals
FY2024-25
Actuals
FY2025-26
Actuals
FY2026-27
Goals
Performance Measures
Deliver a balanced budget to Council on time Yes Yes Yes Yes Number of Public Records Act Request Processed 221 242 337 340 Number of City Council Agendas Prepared 40 33 38 38
FY2026-27 BUDGET
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/Mai
ntenance
Contractual Services
Salaries & Benefits
147

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Packet Pg. 468 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET
City Manager's Office Division
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Expenditures
Salaries & Benefits 979,066 $ 871,823 $ 675,127 $ 803,009 $ Contractual Services 368,455 $ 353,156 $ 570,381 $ 478,904 $ Material/Supplies/Maintenance (380,484) $ 69,084 $ 118,519 $ 106,816 $ Total Expenditures 967,037 $ 1,294,063 $ 1,364,028 $ 1,388,729 $

CITY MANAGER'S OFFICE
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/Ma
intenance
Contractual Services
Salaries & Benefits
148

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Packet Pg. 469 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET

CITY MANAGER'S OFFICE
City Clerk's Office Division
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Expenditures
Salaries & Benefits 520,711 $ 190,395 $ 405,923 $ 440,568 $ Contractual Services - $ 66,691 $ 61,900 $ 71,529 $
Material/Supplies/Maintenance - $ 110,240 $ 54,000 $ 223,574 $ Total Expenditures 520,711 $ 367,326 $ 521,823 $ 735,671 $ $-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/Mainten
ance
Contractual Services
Salaries & Benefits
149

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Packet Pg. 470 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET

CITY MANAGER'S OFFICE
Economic Development Division
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Expenditures
Salaries & Benefits 520,711 $ 190,395 $ 405,923 $ 440,568 $ Contractual Services - $ 66,691 $ 61,900 $ 71,529 $
Material/Supplies/Maintenance - $ 110,240 $ 54,000 $ 223,574 $ Total Expenditures 520,711 $ 367,326 $ 521,823 $ 735,671 $ $-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/
Maintenance
Contractual
Services
Salaries &
Benefits
150

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Packet Pg. 471 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET
Risk Management Division
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Expenditures
Salaries & Benefits 90,248 $ 103,743 $ 104,840 $ 218,491 $ Contractual Services 21,316 $ 6,861 $ 236,900 $ 267,032 $ Material/Supplies/Maintenance 3,181,912 $ 3,656,562 $ 4,755,887 $ 4,595,830 $ Total Expenditures 3,293,476 $ 3,767,166 $ 5,097,627 $ 5,081,353 $ *The Risk Management Division is funded by Internal Service Funds

CITY MANAGER'S OFFICE
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/
Maintenance
Contractual
Services
Salaries &
Benefits
151

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Packet Pg. 472 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) City Attorney
Mission
The mission of the City Attorney is to provide the City with timely and high-quality legal advice, counsel, and representation.

Description
The City Attorney is appointed by the City Council to provide general legal services to the City Council, City Manager and City Departments. Legal services include attendance at meetings of the City Council and other City bodies as requested, rendition of legal advice on City matters to City Council and City staff, preparation of ordinances, resolutions, contracts, and other legal documents pertaining to City affairs, preparation of opinions regarding City matters as requested by appropriate City officials, and general municipal advice to all departments of the City. The City Attorney also provides special counsel services such as personnel, redevelopment, construction law and representation of the City in certain litigation. The City Attorney also oversees litigation where the City’s insurance carrier has retained counsel.

Service Priorities
Deliver excellent legal advice by continuing to devote the time and resources necessary to ensure that requests for opinions, ordinances, resolutions, contracts, and all other non-litigation matters are completed in a timely and professional manner.

Work closely with the City Council, City Manager and City Staff to provide legal advice on emerging trends or topics and provide training to City Staff and City officials, when requested, on laws impacting or affecting the City, such as the Brown Act or the Public Records Act.

Represent the City in negotiations involving complex agreements and contractual disputes.

Attend weekly Executive Team meetings with City Manager and Department Heads.

Zealously and ethically represent the City by devoting the time and resources necessary to ensure that each case is investigated, analyzed, researched, defended, or prosecuted in accordance with the highest legal professional standards.

Staffing
The City Attorney is retained by the City Council through a contractual relationship with the firm Burke, Williams & Sorensen, LLP. Michelle Marchetta Kenyon is designated as the City Attorney and is assisted by other attorneys in the firm who serve as both Assistant City Attorneys and Special Counsel. The law firm of Burke, Williams & Sorensen, LLP has offices throughout California and specializes in public law. 152

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Packet Pg. 473 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Service Level Changes
For FY 2025-26, the City Attorney’s Office plans to continue its current level of services and accessibility for the City Council and City staff.

Budget Highlights / Summary of Changes
The City Attorney budget consists of costs for litigation, compensation, and operations of the City Attorney’s Office. In accordance with the City Manager’s request to reduce department budgets by 5%, the City Attorney’s office has reduced its annual budget for FY 2026-27 by $80,000.

Fiscal Year 2025-2026 Accomplishments
The City Attorney’s Office provided legal advice and support on all aspects of City operations. A sample of significant projects that involved the City Attorneys’ office this past year include:

Civic Center Campus Facilities contracting related issues (Goal # 2) Housing Element Update and implementation of Housing Element and Corresponding Rezoning (Goal #3)
Short-Term Rental Enforcement and Short-Term Rental Ordinance Update (Goal #3) and negotiation of Voluntary Collection Agreements (Goal #1) Local Coastal Land Use Implementation (Goals #1, 2 and 3) Oversized Vehicle (OSV) Enforcement and LCP Amendment for OSV Ordinance (Goals # 1 and 5)
Climate Action and Resiliency Plan (CARP) preparation and implementation (Goal # 4).

Update Contract templates (Goal #1).

Fiscal Year 2026-2027 Goals / Strategic Priorities
Continue to provide efficient, cost-effective delivery of legal services and pursuit of additional cost recovery, where appropriate (Goals # 1-5).

Continue to implement Council policy directives and ensure projects and directives are legally secure (Goals # 1-5).

Continue to advise and assist the City Manager and staff in implementing Council policies and directives (Goals # 1-5).
153

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Packet Pg. 474 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET

CITY ATTORNEY
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Expenditures
Salaries & Benefits 4,362 $ - $ - $ - $
Contractual Services 591,692 $ 543,850 $ 550,600 $ 657,121 $ Material/Supplies/Maintenance 5,771 $ 6,617 $ 4,800 $ - $ Total Expenditures 601,825 $ 550,467 $ 555,400 $ 657,121 $ $-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/
Maintenance
Contractual
Services
Salaries & Benefits
154

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Packet Pg. 475 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Administrative Services
Mission
The mission of the Administrative Services Department is to provide high-quality support services to all City departments, staff, and the community through internal services, including Finance, Human Resources and Information Technology functions, and to ensure compliance with the City’s policies and procedures.

Description
The Administrative Services Department provides internal services and reliable technology resources to staff, members of the City Council, Committees and Commissions, and the community. The Department is responsible for all financial operations, properly recording financial transactions, implementing best practices in employee relations, providing quality internal customer service, and promoting a positive work environment for the City’s talented workforce. The Department prepares the City’s annual operating and capital budget and coordinates the external audit process, including preparing the City’s Annual Comprehensive Financial Report (ACFR). The Department also negotiates and administers contracts for services provided to the community.

Staffing
The Administrative Services Department is comprised of a Finance and Administrative Services Director, Deputy Finance Director, Financial Analyst, Sr. Accountant and Accountant, two Accounting Technician positions, Information Technology Manager and three IT Analysts, Human Resources Manager, Senior Human Resources Analyst, and two Human Resources Analysts positions.

Service Level Changes
FY 2026-27 budget maintains the same level of services as the previous year.

Budget Highlights / Summary of Changes
The Finance, Human Resources, and Information Technology budget is included in the Administrative Services Department budget with salaries and budget costs for the assigned staff per the applicable MOUs with the bargaining units. In addition, contract expenditures are budgeted for professional services, which reflect a 2% increase over the prior fiscal year’s budget. The Administrative Services department also participated and successfully met their budget target reduction equal to approximately 5% of all division’s operating budgets in support of closing the gap in the City’s structural deficit for FY2026-

27. Finance Division
Mission
The mission of the Finance Department is to maintain accurate financial reports, provide financial support to other departments, and ensure compliance with the City’s policies and procedures.
155

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Packet Pg. 476 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Description
The Finance Department is responsible for all financial operations. Finance tracks revenue, expenditures, and bonded debt and properly records all financial transactions in accordance with Generally Acceptable Accounting Principles (GAAP) and the requirements of the Government Accounting Standards Board (GASB). The Department’s goals are to provide financial oversight and support, including implementation and enforcement of financial policies consistent with federal, state, and local mandates, and industry best practices.

Service Priorities
Carry out Strategic Goals and City Council priorities relating to the City’s fiscal sustainability.

Increase the productivity, efficiency, and effectiveness of the organization.

Advise the City Council on matters regarding current and future fiscal, staffing, and program needs of the City.

Undertake financial planning and oversee the preparation of the annual budget.

Ensure internal controls through accountability, financial reporting, and audits.

Manage cash assets, including banking, cashiering, disbursements, and revenues.

Perform accounts payable, receivable, and payroll functions.

Fulfill the City Treasurer function, ensuring an appropriate investment of funds and debt service administration.

Provide sound financial advice to the City Council, City Manager, and staff.

Financial Services 2025-2026 Accomplishments
Successfully completed interim and final financial audits and received a clean audit opinion and management letter from the auditors for FY2024 (Goals #1-5).

Prepared the Annual Comprehensive Financial Report (ACFR) and received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) (Goal #1).

Processed 228 journal entries, 4,357 vendor checks, 7,283 payroll checks and ACH, 588 AR invoices, and 288 wires (Goals #1-5).

Completed and filed State Controller’s reports, other required debt disclosures, mandated debt filing with the state, federal grants reporting, and Opioid settlement filing in a timely manner (Goal #1).

Implemented and customized a new procurement system to enable City staff to unify the RFP process and compliance requirements citywide (Goals #1).

Completed the financial analysis and calculations of the City’s unfunded pension and OPEB liability and updated funding policy guidelines to fund the Actuarily Determined Contribution (ADC) for OPEB and the minimum required contribution to reach % funded status in 20 years for Pension liability to realize a significant reduction in these liabilities during the next year-end closure and beyond (Goal 1). 156

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Packet Pg. 477 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Launched implementation of the Enterprise Resource Planning (ERP) project for MUNIS a cloud-based application solution with Tyler Technology (Goal #1).

Conducted an RFP process and selected a new audit firm Badawi & Associates (Goal #1).

Completed actuarial valuation study for Other-Post-Employment-Benefits (OPEB) (Goal #1).

Continued Business License Tax audits for all business categories (Goal #1).

Redesigned the process and workflow for the Short-Term Rental (STR) Compliance Program in collaboration with HdL.

Completed a comprehensive review and modification of the purchasing policy to gain efficiency, reduce the time spent on contract and purchase order processing.

Continued the Modified Base Budget methodology and further improved the FY 2025-26 Budget Document and received the second Distinguished Budget Presentation Award from the Government Finance Officers Association (GFOA) and the very first Budget Award from the California Society of Municipal Finance Officers (CSMFO) (Goal #1).

Fiscal Year 2026-2027 Goals and Strategic Priorities
Continue supporting the City Council’s Strategic Goals and priorities as they relate to the City’s Financial Operations (Goals #1-5).

Continue timely delivery of key milestones within the Financial annual cycle:

Quarterly Treasurer's and Financial Reports, Interim and Final Audit, including Single Audits, Measure A and Measure W AUP; Child Care Program Audit, Midyear and Annual Budget Process (Goal #1).

Support the City’s Records Management project led by the City Clerk’s Division by timely scanning of financial reports (Goal #1).

Conduct a citywide training on new Purchasing Policy procedures (Goal #1).

Continue to work with HdL on a full-service tax management program as it applies to the short-term vacation rental properties within city limits (Goals #1, 3, 5).

Continue to work with HdL on the Business License Tax audits of different segments of the business community (Goal #1).

Continue Implementing the Short-Term Rental (STR) Compliance Program to improve and streamline the City’s STR regulations and provide adequate enforcement (Goals #1,3).

Complete Cost Allocation Plan and Development Impact Fee and Master Fee Schedule project (Goals #1-2).

Human Resources Division
Mission
The mission of the Human Resources Division is to provide high-quality labor and employee relations, staff recruitment and retention, and staff professional development services that support the City’s objectives in serving the needs of the community and to help foster a positive working environment for staff.
157

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Packet Pg. 478 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Description
The Human Resources Division recruits, develops, and supports the organization’s most Departments, employees, officials, retirees, employment candidates, and the public in the areas of benefits administration, classification and compensation, labor and employee relations, recruitment and selection, organizational development and training, workers compensation administration and risk management. In addition, the Division manages highly sensitive and confidential information to effectively conduct workplace investigations, implement practices to enhance employee performance, manage claims, and ensure compliance with local, state, and federal labor regulations. The Division is involved in two key consortia: Liebert Cassidy Whitmore Employment Relations Consortiums and the San Mateo Regional Training Consortium. These are collaborative groups of local agencies, educational institutions, and non-profits that provide quality employment relations training, consultation, and information services at an economical cost. They offer training and professional development to local governments, which help recruit and retain talent in local government careers.

Service Priorities
Integrate an onboarding process throughout the organization to effectively educate and orient new staff.

Recruit, hire, develop, and retain a diverse and highly talented professional staff.

Manage administrative and personnel policies and procedures and ensure compliance with related laws and regulations.

Manage confidential information when consulting employees and handling personnel records.

Manage labor relations with all bargaining units and unrepresented employees.

Manage grievances related to the Personnel Policies and Procedures and MOUs.

Conduct quarterly labor-management meetings with all bargaining units.

Human Resources 2025-2026 Accomplishments
The City conducted 63 recruitments, processed 1989 employment applications, and filled 52 vacancies during this fiscal year (Goal #1).

Continued to support Department Directors to generate best practices on maintaining strong staffing with employee recruitment and retention initiatives (Goal #1).

Human Resources is currently working with the Employee Engagement Committee to develop solutions to issues identified through the survey and will conduct a follow-up survey upon completion of the committee's work to measure progress and inform future engagement initiatives.(Goal #1).

Enhanced Employee Discount Platform by partnering with regional organizations (Goal #1).

Supported the City’s Records Management project led by the City Clerk’s Office (Goal #5).
158

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Packet Pg. 479 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Implemented comprehensive employee wellness program with 10 City-Wide events.

Collaborated with the Pacifica Police Department to launch a wellness and fitness program focused on improving employee well-being and reducing workplace injury exposure. Since implementation in May 2026, 19 sessions have been conducted in support of the City's efforts to proactively manage workers' compensation costs and promote a healthy workforce.

Conducted Annual Health Fair event with total participation of 120 staff(Goal #1).

Hosted 4 City-Wide Employee events.

Hosted 6 City-Wide Employee trainings.

Continued partnership with San Mateo County’s regional internship program.

Conducted our Annual Service Award Recognition Event to recognize our employees for their hard work and years of service (Goal #1).

Partnering with finance completed the ERP implementation(Goal #1).

Fiscal Year 2026-2027 Goals and Strategic Priorities
Enhanced employee communication by introducing a bi-weekly internal vacancy report (Goal #1).

Conduct an RFP to search for a partner to implement a new “Performance & Development Program” and improve the employee evaluation process (Goal #1).

Implement a city-wide professional development program tailored specifically for new and aspiring managers and supervisors within the City (Goal #1).

Continue prioritizing professional development of staff (Goal #1).

Continue with annual city-wide Employee Engagement Survey (Goal #1).

Continue to support Department Directors in implementing best practices for maintaining strong organization with employee recruitment and retention initiatives (Goal #1).

Work with the City Attorney’s office on updating the City’s HR policies and procedures (Goal #1).

Creation of a quarterly HR Newsletter shared with all staff (Goal #1).

Continue implementation and evaluation of employee wellness and fitness programs, with a focus on increasing participation, supporting employee health, and reducing workplace injury exposure.(Goal #1).

Continue to support the City’s Records Management project led by the City Clerk’s Office (Goal #1).

Continue reviewing and updating personnel policies and procedures.

Utilize new ERP system to develop live tracking of data metrics (Goal #1).

Develop SOPs for processes such as recruitment and onboarding (Goal #1). 159

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Packet Pg. 480 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Information Technology Division
Mission
The mission of the Information Technology Division is to provide high-quality technologybased services that support the City’s goal to effectively serve the needs of the community.

Description
The Information Technology Division manages the City’s information technology program, provides and maintains appropriate hardware and software to City departments, develops and maintains a secure network infrastructure, manages the City’s data and voice infrastructure maintains the City’s telecommunication systems, and manages the City’s website. The Division ensures that staff has the resources and training to effectively use equipment and technology in furtherance of their departmental goals.

Service Priorities
Enhance staff productivity with a secure network, desktop, portable hardware, and supporting software.

Minimize IT equipment downtime and maximize response time and maintain IT systems for disaster recovery and business continuity.

Maintain an effective, visitor-friendly, and informative website that conveys the City’s image, mission, and services.

Information Technology 2025-2026 Accomplishments
Resolved over 2,041 technology service requests while maintaining reliable technology operations and support services across all City facilities and departments. (Goals #1-5)
Successfully restored the Information Technology Division to full staffing with a four-member team, strengthening customer service, operational support, and project delivery. (Goal #1)
Continued modernization of the City's technology infrastructure through deployment of new servers, domain controllers, backup systems, network equipment, workstations, and telecommunications services. (Goals #1-2) Expanded network resiliency and business continuity through installation of secondary internet connections, 5G backup gateways,
upgraded firewall infrastructure, and enhanced disaster recovery capabilities. (Goals #1-2)
Enhanced the City's cybersecurity posture by expanding Multi-Factor Authentication (MFA), strengthening email and network security controls, implementing stricter vendor access requirements, improving cloud security governance, and conducting cybersecurity awareness training. (Goal #1) Advanced cloud modernization initiatives through expanded use of Microsoft 365, SharePoint, cloud-based business applications, cloud identity management, and mobile device management technologies. (Goal #1)
160

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Packet Pg. 481 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Modernized technology infrastructure at the Police Department through deployment of new servers, backup systems, network services, physical security technologies, and preparation for future cloud-based services. (Goals #1-2) Improved meeting, collaboration, and communication technologies through deployment of Microsoft Teams Phone services, AI-powered conference room equipment, and other modern workplace solutions. (Goal #5) Enhanced physical security systems through implementation of cloud-managed access control, camera, and monitoring technologies. (Goals #1-2) Initiated the evaluation and implementation of Artificial Intelligence (AI) and machine learning-enabled technology tools within the Information Technology Division to improve operational efficiency, system management, cybersecurity monitoring, and customer support capabilities. (Goals #1-5) Collaborated with Human Resources and executive leadership to begin development of Artificial Intelligence (AI) governance policies and guidelines to support the responsible, secure, and appropriate use of emerging technologies across the organization. (Goals #1-5)
Fiscal Year 2026-2027 Goals and Strategic Priorities
Continuing the Cloudization project: preparing the network infrastructure to migrate servers and services to the cloud (Goals #1-2).

City-wide expansion of Multi-factor authentication (MFA) on software services to enhance security and counter cyber threats (Goal #1).

Upgrading the existing backup system to bolster security and reduce system recovery time. (Goal #1).

Expanding the VoIP (Voice over IP) solution to replace the aging phone system (Goal #1).

Implementing a mobile device management system to enhance the security, management, and tracking of various City-issued mobile devices (Goal #1).

Replacement of aging hardware at all City facilities as part of IT infrastructure modernization (Goal #1).

Continuing the review, update, and implementation of technology policies (Goal #1).

Expanding IT team to create better customer service to all City departments (Goal #1).
161

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Packet Pg. 482 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET

ADMINISTRATIVE SERVICES
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Expenditures
Salaries & Benefits 2,085,636 $ 2,371,106 $ 3,062,666 $ 3,000,262 $ Contractual Services 806,425 $ 858,611 $ 1,298,294 $ 1,001,938 $ Material/Supplies/Maintenance 209,819 $ 160,199 $ 321,238 $ 238,862 $ Total Expenditures 3,101,880 $ 3,389,916 $ 4,682,198 $ 4,241,062 $ Full-Time Equivalent Employees 14.00 15.00 15.00 15.00
FY2023-24
Actuals
FY2024-25
Actuals
FY2025-26
Actuals
FY2026-27
Goals
Performance Measures
Yes Yes Yes Yes
Yes Yes Yes Yes
IT Support tickets completed 1,973 2,305 2,041 2,106
Receive the Distinguished Budget
Presentation Award
Deliver the Annual Comprehensive
Financial Report on time
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/M
aintenance
Contractual
Services
Salaries & Benefits
162

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Packet Pg. 483 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET
Finance Division
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Expenditures
Salaries & Benefits 861,950 $ 1,068,384 $ 1,224,343 $ 1,232,013 $ Contractual Services 382,443 $ 317,229 $ 548,400 $ 445,986 $ Material/Supplies/Maintenance 84,388 $ 76,115 $ 63,919 $ 80,277 $ Total Expenditures 1,328,781 $ 1,461,727 $ 1,836,662 $ 1,758,276 $

ADMINISTRATIVE SERVICES
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/
Maintenance
Contractual
Services
Salaries & Benefits
163

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Packet Pg. 484 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET
Human Resources Division
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Expenditures
Salaries & Benefits 609,008 $ 651,357 $ 908,763 $ 842,989 $ Contractual Services 237,766 $ 379,765 $ 437,194 $ 255,952 $ Material/Supplies/Maintenance 40,770 $ 73,286 $ 107,519 $ 66,498 $ Total Expenditures 887,543 $ 1,104,408 $ 1,453,476 $ 1,165,439 $

ADMINISTRATIVE SERVICES
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/
Maintenance
Contractual
Services
Salaries & Benefits
164

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Packet Pg. 485 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET
Information Technology Division
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Expenditures
Salaries & Benefits 614,679 $ 651,365 $ 929,560 $ 925,260 $ Contractual Services 186,216 $ 161,617 $ 312,700 $ 300,000 $ Material/Supplies/Maintenance 84,661 $ 10,799 $ 149,800 $ 92,087 $ Total Expenditures 885,556 $ 823,780 $ 1,392,060 $ 1,317,347 $

ADMINISTRATIVE SERVICES
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/
Maintenance
Contractual
Services
Salaries & Benefits
165

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Packet Pg. 486 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) 166

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Packet Pg. 487 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Police Department
Mission
The mission of the Pacifica Police Department is to protect and serve our community with the highest level of commitment, ethics, and professionalism.

We work in partnership with our community to safeguard life and property while enhancing the quality of life throughout Pacifica. This mission is accomplished through the innovative use of resources, community engagement and education, collaborative problem-solving, and mutual respect among our employees and the people we serve.

Description
The Pacifica Police Department is dedicated to preserving the community's high quality of life through crime prevention, public safety services, and collaborative problem-solving.

The Department is responsible for protecting life and property, preserving public safety, and safeguarding the constitutional rights of all individuals.

To achieve these objectives, the Department utilizes specialized units and multidisciplinary teams comprised of both sworn and professional staff who respond to calls for service, conduct investigations, provide community-based services, and partner with residents, businesses, schools, and community organizations to address public safety concerns.

Organizational Structure
The Police Department is comprised of 36 sworn peace officer positions, five full-time support positions, three part-time support positions, and one full-time Mental Health Clinician. The Department is organized into two primary divisions: the Operations Division and the Investigations and Support Services Division.

The Operations Division is responsible for uniformed patrol services, traffic enforcement, emergency response, crime prevention efforts, and oversight of the Community Wellness and Crisis Response Team.

The Investigations and Support Services Division is responsible for records management, fiscal administration, professional standards, criminal investigations, property and evidence management, emergency management, and other administrative support functions essential to Department operations.

Budget Highlights / Summary of Changes
The Police Department's FY 2026–27 budget proposal achieves approximately $675,760 in General Fund savings through grant revenue, opioid settlement funding, position freezes, operational efficiencies, and targeted expenditure reductions. Major actions include freezing two Police Officer positions for six months and one Community Service Officer position for one year, funding a regional Mental Health Clinician through opioid settlement funds, reallocating employee wellness funding to the workers' compensation reserve, and reducing overtime and selected discretionary expenditures 167

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Packet Pg. 488 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) associated with community outreach and engagement activities. These measures prioritize core public safety services while advancing the City's fiscal sustainability goals.

Operations Division
Priorities
Respond to emergency and non-emergency calls for service.

Protect life, property, and public safety.

Prevent and reduce crime.

Reduce traffic collisions, injuries, and fatalities.

Conduct preliminary criminal investigations and traffic collision investigations.

Provide behavioral health crisis response services.

Promote employee wellness through physical and psychological support programs.

Enhance school safety and emergency preparedness.

Support vulnerable populations through partnerships and outreach.

Enforce state laws and City ordinances.

Preserve the quality of life for residents, businesses, and visitors.

Pursue federal and state grant funding to support public safety initiatives.

Support community engagement, outreach, and public education efforts.

Participate in regional task forces and countywide enforcement initiatives to address crime and improve public safety.

Investigative and Support Services Division
Priorities
Recruit, hire, and retain qualified personnel.

Maintain public safety equipment, technology, and facilities.

Provide records management and public assistance services.

Ensure compliance with federal, state, and local reporting requirements.

Conduct criminal investigations and prepare cases for prosecution.

Manage, preserve, and secure evidence and property.

Deliver professional training and employee development programs.

Advance public safety technology, innovation, and operational efficiency.

Provide staff support to boards, commissions, and regional partnerships.

Maintain professional standards through policy development, constitutional policing, legal compliance, and accountability.

Support employee recruitment, retention, wellness, and leadership development, through training, mentorship, recognition and employee engagement initiatives. 168

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Packet Pg. 489 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Fiscal Year 2025-2026 Accomplishments
Successfully recruited and hired five (5) employees. (Goal #1) Secured $130,997 in grant funding to advance the Department's traffic safety mission. (Goal #1)
Expanded special assignment opportunities to support employee retention, professional development, and succession planning. (Goal #1).

Implemented Field Training Officer software to improve training record management and ensure compliance with POST requirements. (Goal #2) Upgraded the existing security cameras, access controls and intercoms in the temporary holding facility (Goal #2)
Enhanced the Department’s LGBTQIA+ Liaison Officer Program through participation in national and regional professional networks, collaboration with community-based organizations, and development of partnerships supporting victim advocacy, youth outreach, and mental health initiatives. (Goal #5) Implemented drone technology and a public flight dashboard to improve operational efficiency, effectiveness, and transparency. (Goal #2) Partnered with a fitness professional to support employee wellness, improve physical readiness, and reduce workplace injuries (Goal #5) Met quarterly with the Pacifica Resource Center to coordinate referrals and support services related to the Temporary Safe Parking Program and individuals experiencing homelessness. (Goal #3)
Presented Community Emergency Response Team (CERT) courses to enhance community preparedness and resilience. (Goal #5)
Hosted the Department’s inaugural Spanish-language Coffee with a Cop event to strengthen engagement with Pacifica’s Spanish-speaking community. (Goal #5) Participated in community disaster preparedness events to promote emergency readiness. (Goal #5)
Increased social media followership across all platforms, expanding the Department's community outreach and communication efforts. (Goal #5) Hosted employee recognition ceremonies celebrating new hires, promotions, and retirements. (Goal #1)
Enhanced the Department website by expanding public access to e-bike laws, safety information, and educational resources. (Goal #5) Increased Traffic Unit capacity to reduce impaired driving through education and enforcement efforts. (Goal #1)
Expanded community outreach programming through the creation of a Teen Academy and Community Academy. (Goal #5)
169

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Packet Pg. 490 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Integrated public safety technology dashboards to enhance transparency regarding data collection, usage, and sharing practices. (Goal #5) Fiscal Year 2026-2027 Goals / Strategic Priorities
Fill vacant police officer positions through innovative recruitment, branding, and outreach strategies. (Goal #1).

Continue collaboration with the Pacifica Resource Center, County outreach teams, and City departments to address homelessness, quality-of-life concerns, and community wellness needs. (Goal #3)
Utilize additional motorcycle officer to promote awareness about the safe operation of e-bikes in collaboration with school district staff. (Goal #5) Implement survey solution utilizing real-time data analytics to gauge community feedback about police interactions. (Goal #5)
Invest in a healthy and engaged workforce by actively seeking and implementing evidence-based employee wellness strategies. (Goal #1)
Conduct a comprehensive assessment of police facilities, evidence storage systems, and workplace safety needs to identify operational, security, and compliance improvements. (Goal #2)
Formalize a Career Development Plan to support professional development and succession planning. (Goal #1).

Implement employee feedback mechanisms to improve communication, engagement, and organizational effectiveness. (Goal #1) Apply for federal and state grant funding to enhance public safety service levels. (Goal #1).

Host staff appreciation events to recognized and reward exemplary performance. (Goal #1)
Create a VIP (Volunteers in Police Services) Program to ease the burden of rising workloads and short staffing. (Goal #1).

Create a Police Explorer Program
to expand police officer candidate
pool. (Goal #1)
Fill mental health clinician vacancy
and implement Community
Wellness and Crisis Response
Team Program. (Goal #5)
Fill CORE Corporal position to
support crime prevention efforts
and serve as a liaison for
residents, business owners, and
school districts. (Goal #5)
Expand community education and
outreach efforts through
partnerships with schools, the
Library, and community organizations. (Goal #5)
170

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Packet Pg. 491 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET

POLICE DEPARTMENT
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Revenue Sources
Charges for Services 179,164 $ 114,411 $ 139,700 $ 141,097 $ Intergovernmental 263,630 $ 276,506 $ 269,196 $ 297,499 $ Other Revenue 261,773 $ 233,441 $ 270,300 $ 273,003 $
Total Revenues 704,567 $ 624,358 $ 679,196 $ 711,599 $
Expenditures
Salaries & Benefits 10,217,025 $ 10,749,394 $ 11,844,513 $ 12,608,144 $ Contractual Services 1,162,082 $ 1,096,247 $ 1,157,000 $ 1,125,637 $ Material/Supplies/Maintenance 886,510 $ 1,057,297 $ 1,168,208 $ 976,997 $ Total Expenditures 12,265,618 $ 12,902,938 $ 14,169,722 $ 14,710,778 $ Full-Time Equivalent Employees 42.00 43.00 43.00 44.00
FY2023-24
Actuals
FY2024-25
Actuals
FY2025-26
Actuals FY2026-27 Goals
Performance Measures
91% 99% 98% 100%
10 13 16 12
32,592 35,161 37,598 38,500
6 5 7 5
Percentage of staff with Crisis Intervention Training
Number of community outreach events/programs
Social-media Followership
Number of newly hired employees
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/M
aintenance
Contractual
Services
Salaries & Benefits
171

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Packet Pg. 492 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA

POLICE DEPARTMENT
Field Services Division
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Expenditures
Salaries & Benefits 7,493,044 $ 7,274,496 $ 8,639,374 $ 9,870,248 $ Contractual Services 363,000 $ 280,913 $ 305,900 $ 310,489 $ Material/Supplies/Maintenance 499,640 $ 624,920 $ 613,714 $ 442,949 $ Total Expenditures 8,355,685 $ 8,180,329 $ 9,558,988 $ 10,623,686 $ FY2026-27 BUDGET
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/
Maintenance
Contractual
Services
Salaries & Benefits
172

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Packet Pg. 493 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET
Administrative/ Investigative Division
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Expenditures
Salaries & Benefits 2,655,236 $ 3,442,054 $ 3,185,340 $ 2,679,796 $ Contractual Services 799,083 $ 815,334 $ 851,100 $ 815,148 $ Material/Supplies/Maintenance 336,104 $ 372,838 $ 377,300 $ 368,117 $ Total Expenditures 3,790,424 $ 4,630,226 $ 4,413,740 $ 3,863,061 $

POLICE DEPARTMENT
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/
Maintenance
Contractual
Services
Salaries & Benefits
173

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Packet Pg. 494 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) 174

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Packet Pg. 495 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) North County Fire Authority
Mission
Be Kind – Always Prepared – Care for Others
Description
Emergency Response: Provides life-saving services and overall assistance to residents, businesses, and visitors by responding to and mitigating emergency and non-emergency incidents and events, such as Emergency Medical Pre-Hospital Care and Advanced Life Services, Fire Suppression, Fire Search and Rescue, Low and High Angel Rescues, Urban Search and Rescue, Structural Collapse, Vehicle Accidents and Extrications, Terrorism, Multi-Casualty Incidents (MCIs) and WMD Special Operations, Hazardous Materials Releases, and Public Assistance.

Fire and Life Safety Code Compliance and Fire Investigations: Minimize loss of life and property from fires and hazardous materials releases. Provide on-site fire and life safety code compliance inspections and re-inspections to businesses, multi-family, and permitted occupancies through dedicated safety inspectors and fire companies, as well as fire protection planning through new construction and tenant improvement plan review services and inspections, resulting in a fire and hazardous materials safe environment.

When fires occur, complete fire investigations to determine the cause of the fire, origin, and if possible, the responsible party if illegal activity is involved.

Community Outreach and Public Education: Educates the community in the reduction of injuries, loss of life, and property damage from fires and other accidents or events, as well as providing emergency planning and disaster preparedness for individuals, families, and through Community Emergency Response Team (CERT) participants.

Organizational Support, Strategy, and Maintenance of Effort: Administration, Leadership, Oversight, Budget and Accounts Payable, Human Resources, Community Emergency Planning, Preparedness and Response, Mandated and Recurrent Training and Certifications; Equipment, Facilities and Grounds, Safety, Health and Wellness, Apparatus and Vehicles, Master and Operational Planning, Grant Awards Management, Communications Systems, and Information Technology.

Service Priorities
The North County Fire Authority will support citywide priorities through the following:

Economic Development / Revenue Enhancement: Complete thorough and timely plans check reviews and construction inspections. Provide positive customer relationships through professional consultations regarding development, new business, and expansion 175

11.i
Packet Pg. 496 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) opportunities. Continue to look for cooperative agreements, which reduces cost, enhances service delivery, and provides for revenue and reimbursements.

Public Safety: Stop the escalation of medical emergencies by providing pre-hospital care medical treatment and advanced life support services through paramedic fire companies.

Stop the escalation of structure fires by confining the damage near the room of origin and limiting heat and smoke damage to the area or floor of fire origin. Stop the escalation of all other emergencies and mitigate those effectively and efficiently. Complete annual fire and life safety code compliance inspections of all commercial, permitted, and multi-family occupancies. Complete required and mandated training, as well as re-certifications for all employees.

Community / Civic Support: Continue to achieve an excellent overall customer service rating in delivery of emergency and non-emergency services. Continue providing community outreach and public education programs designed to prevent fire, injuries, accidents, and other elements making for a safer city. Provide for emergency preparedness and community outreach programs to educate the public regarding disasters and become self-sufficient until help arrives.

Staffing
The North County Fire Authority (NCFA), which provides fire services to the Cities of Pacifica, Daly City and Brisbane, is comprised of 3 Bureaus consisting of Operations, Special Services and Administrative Services, supported by 7 Divisions, which are Emergency Medical Services, Training, Special Operations, Emergency Planning, Fire Prevention, Technical Services and Support Services. NCFA daily staffing across all jurisdictions is approximately 35 personnel, which cover fire engines, ladder trucks, rescue units, USAR Heavy rescue, battalion chiefs, duty chief and investigators/PIOs.

Service Level Changes
FY 2026-2027 budget includes no service level changes.

Budget Highlights / Summary of Changes
For FY 2026-27, the Fire Department met their budget target reduction equal to approximately 5% of the operating budgets. These budget reductions were carefully considered in support of closing the City’s fiscal deficit.

Fiscal Year 2025-2026 Accomplishments
Emergency Operations and Training
Achieved an overall “Customer Satisfaction” rating of 98% in the delivery of emergency and non-emergency services.
176

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Packet Pg. 497 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Achieved getting a first due fire company on scene from time of dispatch to arrival in, on average, under 6 minutes to all fire and medical emergencies, which more than achieved the established goal.

Provided Pre-Hospital Advanced Life Saving (ALS) medical interventions and treatments for residents, businesses and visitors through paramedics staffed engine and truck companies, as well over 50% of emergency medical services were for senior citizens.

Participated in and supported Girls Fire Camp for awareness and hands on learning about the fire service profession and how to become a firefighter. (Goal #5)
Deployed fire companies and chief officers to major wildfire incidents throughout California through the Statewide Fire and Rescue Mutual Aid System.

Completed elements of the NCFA 5 Year Business and Operational “Strategic Plan” benchmarked accomplishments and goals.

Completed all required annual training, continuing education and certifications for our fire company-based paramedics and emergency medical technicians. (Goal #1)
Averaged 240 hours per firefighter over the year of in-service recurrent and mandated training through efforts of the Operations Bureau, Training Division and Special Operations Division. (Goal #1)
Provided mental health awareness training and peer support for personnel. (Goal #1)
Supported internal firefighters completing the necessary requirements to become a Paramedic and welcomed new additions to our paramedic ranks.

Public Education and Community Outreach
Continued enhancing NCFA ‘s public education outreach programs utilizing multilanguage platforms and materials for fire safety, emergency planning and preparedness. (Goal #5)
Promoted diversity through recruiting initiatives, outreach opportunities, such as hiring fairs, supporting girls fire camps, etc. all focused-on learning about the fire service profession and how to become a firefighter. (Goal #5) Distributed the Ready-Set-Go Wildfire preparedness brochure and information through NCFA and Cities social media and websites. (Goal #5) Provided the annual “Fire Service Day” which included opening fire stations to the community and distributing fire education and disaster preparedness information, “Hands Only CPR”, “Stop The Bleed” and “Choking” instructional training. (Goal #5)
Participated in a drive to collect new classroom supplies and backpacks for kids starting back to school.

Distributed throughout the year public information and media releases through NCFA and other online social media platforms regarding emergency incidents and significant events. (Goal #5)
Partnered and participated in the ‘Operation Santa Claus’ program, as well as other toy and assistance drive and distribution.
177

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Packet Pg. 498 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) For October Fire Prevention Week all schools were visited by fire companies and provided fire prevention education materials including the importance of smoke detectors in the home. (Goal #5)
Provided Basic Emergency Preparedness, Individual and Family Preparedness seminars, as well as Community Emergency Response Team (CERT) classes to prepare the public for disasters. (Goal #5)
Distributed and provided education on Senior Citizen Fall Prevention, as well as a Home Safety Checklist information. (Goal #5)
Presented “Hands Only CPR”, “Stop the Bleed” and “Choking” instructional events throughout the city’s community outreach and public events and other venues either in person or on-line.

Presented Community Wildfire Awareness and Preparedness outreach through web based, social media and online education platforms as well as other forms of communications.

Participated in the San Mateo County Emergency Preparedness event. (Goal #5) Coordinated and participated in Community Wildfire Awareness and Education events. (Goal #5)
Fire Prevention
Fire Safety Inspectors completed annual required, mandated and routine fire and life safety occupancy inspections ensuring code compliance.

Fire Prevention Services Division completed timely, professional and highquality pre-fire engineering development reviews.

Fire Prevention Services Division completed plan check analysis and inspections for new construction projects, tenant improvements, fire detection alarm and suppression systems.

Fire Safety Inspectors completed necessary fire code reviews of occupancies allowing for the opening of new businesses to the public.

Fire Companies completed assigned annual required, mandated and fire and life safety occupancy inspections ensuring code compliance.

Completed fire investigation cause and origin determinations and analysis for fire incidents.

Provided fire extinguisher training to businesses and the public. (Goal #5) Fiscal Year 2026-2027 Goals / Strategic Priorities
Medical emergency responses by a paramedic fire company will arrive on average within 6 minutes or less total reflex time.

Fire emergency responses by a fire company will arrive on average within 6 minutes or less total reflex time.

Provide joint police and fire emergency management training.220 hours of annual mandatory, certification and recurrent training on average for each firefighter 178

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Packet Pg. 499 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Ensure the annual required in-service on duty continuing education, infrequent skills and certifications totaling 24 hours for each paramedic and 12 hours for each emergency technician. (Goal #1)
Provide overall administration and leadership for all aspects of the organization, including creation implementation of goals, priorities, objectives, performance measurements and outcomes, fiscal management, policy development and direction, strategic planning, accounting, human resources, payroll, facilities, grounds and fleet maintenance, along with purchasing of goods, supplies and equipment, as well as analysis of fire resources deployment.

Ensure annual fire and life safety inspections and re-inspections completed by fire companies and dedicated fire inspectors for mandated and required occupancies, all commercial, permitted and multi-family occupancies.

Provide public awareness and education regarding emergency disaster preparedness. Participate in and lead in emergency coordination and homeland security activities in collaboration with stakeholders. (Goal #5) Continue providing community outreach and public education programs designed to prevent fire, injuries, and accidents, making for a safer city. This includes annually visiting school classrooms, seniors, neighborhood groups, safety fairs, etc. as well as instructing the public how to perform “Hands Only CPR”, stopping choking and bleeding, along with how to utilize Automatic External Defibrillators 179

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Packet Pg. 500 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET

NORTH COUNTY FIRE AUTHORITY
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Revenue Sources
Charges for Services 371,711 $ 410,716 $ 387,600 $ 391,476 $ Intergovernmental 196,478 $ 994,127 $ - $ - $
Other Revenue 54,905 $ 54,642 $ 52,000 $ 52,520 $
Total Revenues 623,094 $ 1,459,484 $ 439,600 $ 443,996 $ Expenditures
Salaries & Benefits 7,136,502 $ 8,225,018 $ 7,794,559 $ 8,606,202 $ Contractual Services 218,790 $ 224,462 $ 310,600 $ 258,826 $ Material/Supplies/Maintenance 971,761 $ 556,115 $ 575,500 $ 583,904 $ Total Expenditures 8,327,054 $ 9,005,596 $ 8,680,659 $ 9,448,932 $ Full-Time Equivalent Employees 26.00 26.00 26.00 26.00
Performance Measures
FY2023-24
Actuals
FY2024-25
Actuals
FY2025-26
Actuals
FY2026-27
Goals
Yes Yes Yes Yes
98% 98% 98% 100%
Yes Yes Yes Yes
Arrival of emergency responses within 6
minutes or less
All fire/life safety inspections completed for
commercial, permitted, and multifamily
occupancies by fire inspectors
Excellent customer service satisfaction rating
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/M
aintenance
Contractual
Services
Salaries & Benefits
180

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Packet Pg. 501 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET
Emergency Services Division
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Expenditures
Salaries & Benefits 6,606,271 $ 7,638,066 $ 7,154,264 $ 8,004,464 $ Contractual Services 218,790 $ 199,462 $ 280,000 $ 258,826 $ Material/Supplies/Maintenance 594,054 $ 538,403 $ 556,800 $ 564,929 $ Total Expenditures 7,419,115 $ 8,375,931 $ 7,991,064 $ 8,828,219 $

NORTH COUNTY FIRE AUTHORITY
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/
Maintenance
Contractual
Services
Salaries &
Benefits
181

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Packet Pg. 502 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET
Support Services Division
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Expenditures
Salaries & Benefits 143,504 $ 139,487 $ 147,597 $ 162,815 $ Contractual Services - $ 25,000 $ 30,600 $ - $
Material/Supplies/Maintenance 9,624 $ 9,723 $ 9,800 $ 9,947 $ Total Expenditures 153,128 $ 174,210 $ 187,997 $ 172,762 $

NORTH COUNTY FIRE AUTHORITY
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
2023-24 2024-25 2025-26 2026-27
Material/Supplie
s/Maintenance
Contractual
Services
Salaries &
Benefits
182

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Packet Pg. 503 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET
Paramedic Services Coordination Division
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Expenditures
Salaries & Benefits 386,727 $ 447,466 $ 492,698 $ 438,923 $ Materials/Supplies/Maintenance 9,260 $ 7,989 $ 8,900 $ 9,028 $ Total Expenditures 395,987 $ 455,455 $ 501,598 $ 447,951 $

NORTH COUNTY FIRE AUTHORITY
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
2023-24 2024-25 2025-26 2026-27
Materials/Supplies
/Maintenance
Salaries &
Benefits
183

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Packet Pg. 504 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) 184

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Packet Pg. 505 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Community Development Department
Mission
The mission of the Community Development Department is to foster a vibrant, inclusive, and sustainable community through thoughtful planning, innovative development, and responsive public service. We strive to enhance the quality of life for all residents by promoting balanced growth, preserving our natural and cultural resources, and ensuring equitable access to housing, transportation, and economic opportunities.

Description
The Community Development Department provides public facing and internal services related to the review of development and building permit applications, and enforcement of the City’s development regulations and Municipal Code. The Community Development Department has primary responsibility for the maintenance and implementation of the City’s General Plan, Local Coastal Program, Zoning Regulations, and Building Code, as well as environmental review of City and private development projects. It also provides primary staff support to the Planning Commission, Open Space and Parkland Advisory Committee (OSPAC), and Climate Action and Adaptation (CAAP) Task Force.

Service Priorities
Provide timely responses to inquiries about City regulations.

Provide an efficient process for plan check and review of building permit applications.

Comply with all laws governing the development review process.

Provide staff support to the Planning Commission, Climate Action and Resilience Committee (CARC), and Open Space and Parkland Advisory Committee (OSPAC).

Investigate and resolve code enforcement complaints with priority given to violations affecting public health, safety, and welfare.

Implement City Council priority work plan projects, as assigned.

Staffing
The Community Development Department is comprised of 11 full-time and 1 part-time City staff and several consultants to accomplish its broad array of services. Full-time staff include: (1) Community Development Director, (1) Deputy Director, (3) Senior Planners (one term-limited dependent on grant match funding), (1) Associate Planner, (1) Assistant Planner, (2) Permit Technicians, (2) Code Enforcement Officers, and (1) Administrative Assistant. Part-time staff includes (1) Intern.
185

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Packet Pg. 506 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Consultants hired to support the department’s ongoing work includes a Building Official, Building Inspector, Plan Reviewer, CEQA Review, Geotechnical Engineering, Planning Services, and Below-Market Rate (BMR) Administration.

The department is also supported by three fellows during all or part of FY2026-27: (2) CivicSpark fellows, one focused on Climate Action and Resiliency Plan implementation coordination and the other on Sea Level Rise Planning, and (1) Partnership for the Bay’s Future fellow focused on housing.

Service Level Changes
FY2026-27 budget includes service level increases to address a few key priorities:

Housing Element Implementation, including Zoning Modernization, Streamlining, and Objective Design Standards (HE-I-2), Housing Opportunities on Public Land (HE-I-3), and State and Federal Law Compliance (HE-I-14).

Sea level rise and shoreline adaption planning and Local Coastal Land Use Plan implementation.

Climate Action and Resiliency Plan (CARP) coordination.

Short-Term Rental (STR) Program Enhancements and Enforcement.

Process Improvements.

Budget Highlights / Summary of Changes
The Community Development Department’s budget reflects an ongoing high level of services given the department’s staffing level. The department has primary responsibility for 7 of 25 strategies across 3 of the 5 City Council Priority Goals for FY 2026-27 and key supporting responsibilities for several others. It also has significant ongoing responsibilities related to administration of the building permit and development permit review processes including processing appeals, staffing of three commissions/committees, and focusing on significant code enforcement matters. The FY2026-27 budget includes several service level decreases to address the structural budget deficit:

Conversion of Management Analyst position to an Administrative Assistant.

Reallocation of part-time program manager and one Civic Spark to support sea level rise and shoreline adaption planning and Local Coastal Land Use Plan implementation.

Elimination of part-time Stenographer position in order to move towards the implementation of action minutes for Planning Commission hearings.

Planning Division
Mission
The Planning Division is responsible for both current and advance planning. They serve as the primary interface between developers, the community, and the City’s development review process, and have primary responsibility for maintenance and administration of the City’s General Plan, Local Coastal Program, and Zoning Regulations. 186

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Packet Pg. 507 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Description
The Planning Division is responsible for guiding land use and development in Pacifica.

Planners facilitate the City’s development review process by integrating interdepartmental reviews, responding to community inquiries, presenting development projects to the Planning Commission, and resolving City Council appeals. Advance planning responsibilities include implementation of the City’s long range planning policy documents, such as housing element programs, and bringing zoning ordinance changes to City Council for legislative approvals. Planning also supports activities by other departments/divisions by providing expert advice on the City’s development and land use regulations and environmental review.

Service Priorities
Facilitate development review in compliance with state and local laws.

Continually improve the efficiency and transparency of the development review process for applicants and the public.

Establish policies for City Council approval that balance community character, protect natural resources, fulfill the City’s regional housing needs obligations, support economic development and financial sustainability, and comply with all applicable laws.

Building Division
Mission
The Building Division administers the City’s Building Code and preserves public health, safety, and welfare by processing permits, performing building permit plan reviews, conducting inspections, and performing investigations of complaints related to buildings.

Description
The Building Division is responsible for the oversight of permitting for all construction projects in Pacifica. With support from two City staff permit technicians, the consultant Building Official, building inspectors, and plan reviewers coordinate their work to administer the City’s Building Code from application through final inspection.

Service Priorities
Provide responsive services to customers, including building permit applicants submitting at the public counter and online.

Provide timely review of building permit applications in accordance with Cityestablished service goals.

Conduct building inspections.

Code Enforcement Division
Mission
The Code Enforcement Division leads investigations into reported complaints of violations of the City’s development regulations, zoning regulations, and other laws of the City to preserve public health, safety, and welfare. It treats all parties with respect, dignity, and in accordance with due process.
187

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Packet Pg. 508 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Description
The Code Enforcement Division is responsible for maintaining community standards in Pacifica. The Code Enforcement Officers prioritize multiple complaints to focus first on issues that affect public health, safety, and welfare. Code enforcement officers seek voluntary compliance through respectful engagement with violators and utilizes enforcement tools as a last option.

Service Priorities
Prioritize investigations relating to imminent threats to public health, safety, and welfare.

Achieve voluntary compliance through education and mutual respect.

Fiscal Year 2025-2026 Accomplishments
Adopted the Housing Element Rezoning Program – General Plan and Zoning Amendments to Achieve Regional Housing Needs Allocation; the first major rezoning effort in over 40 years (Goal #1, Goal #3, Goal #4).

Adopted comprehensive, community-driven updates to the Short-term Rental Program Ordinance (Goal #3).

Adopted the Climate Action and Resiliency Plan (CARP) (Goal #4).

Launched the Climate Action & Resiliency Committee (CARC) (Goal #4, Goal #5).

Approved entitlements for the third largest project in Pacifica in over a decade – a 19-unit mixed use residential project (Goal #1, Goal #3).

Outdoor Commercial Activity Ordinance certified by the California Coastal Commission (Goal #1, Goal #4).

Implemented SolarApp+ online permits for solar permits (Goal #4).

Filled four vacant positions with regular, full-time employees, including Deputy Director, Assistant Planner, Code Enforcement Officer, and Permit Technician, and accepted two CivicSpark fellows (Goal #1, Goal #1).

Held staff strategic planning retreat and initiated an organizational assessment (Goal #1).

Implemented planning entitlement tracking and website improvements (Goal #1, Goal #5).

Issued 1,607 building permits consisting of $38.1 million in valuation.

Conducted 3,761 building inspections. Implemented new Short-Term Rental Ordinance outside of the Coastal Zone, including over 80 inspections.

Investigated more than 600 code enforcement complaints.

Fiscal Year 2026-2027 Goals and Strategic Priorities
Community Development / Permit Tracking Software for Building, Planning, and Public Works permits (Goal #1).

Continue processing of Planning documents/ordinances/plans updates that clarify/streamline development requirements and processes, including the Local Coastal Land Use Plan, the Sharp Park Specific Plan, and Zoning Code Amendments (Goal #1).
188

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Packet Pg. 509 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Prioritize Housing Element program implementation (Goal #3).

Prioritize protection and development of affordable housing (Goal #3).

Zoning modernization, streamlining, objective design standards (HE-I-2) (Goal #3).

Master Planning for Public Sites (HE-I-3) (Goal #3).

Strengthen inclusionary housing program (HE-I-6) (Goal #3).

Fully implement the Short-Term Rental Ordinance (Goal #3).

Begin implementation of the Climate Action and Resiliency Plan (Goal #4).

Sea level rise and shoreline adaptation planning, including initiation of the Shoreline Adaption Program, Coastal Access and Resilience Program, and sunrise the Special Shoreline Resiliency Areas (Goal #4).

Process Local Coastal Plan Amendments and continue collaboration with the Coastal Commission staff (Goal #4).
189

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Packet Pg. 510 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Revenue Sources
Charges for Services 1,604,464 $ 1,481,189 $ 1,382,000 $ 1,622,389 $ Legal (reimbursement) (17,878) $ 200,719 $ 306,000 $ 309,060 $ Planning (reimbursement) (13,052) $ 81,564 $ 459,000 $ 862,743 $ Total Revenues 1,573,534 $ 1,763,472 $ 2,147,000 $ 2,794,192 $ Expenditures
Salaries & Benefits 1,556,861 $ 1,472,623 $ 2,097,377 $ 2,255,204 $ Contractual Services 1,775,962 $ 3,013,265 $ 4,592,313 $ 4,538,739 $ Legal (reimbursement) 17,878 $ (200,719) $ (306,000) $ (309,060) $ Planning (reimbursement) 13,052 $ (81,564) $ (459,000) $ (862,743) $ Material/Supplies/Maintenance 95,249 $ 66,542 $ 181,645 $ 145,633 $ Total Expenditures 3,459,001 $ 4,270,147 $ 6,106,335 $ 5,767,773 $ Full-Time Equivalent Employees 9.75 10.75 10.75 12.00
FY2023-24
Actuals
FY2024-25
Actuals
FY2025-26
Actuals
FY2026-27
Goals
Performance Measures
Number of residential units entitled 78 22 32 100
Number of building permits issued 1,368 1,335 1,607 1,700 Number of investigated code complaints 600 500 632 640

COMMUNITY DEVELOPMENT DEPARTMENT
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/Ma
intenance
Contractual Services
Salaries & Benefits
190

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Packet Pg. 511 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA

COMMUNITY DEVELOPMENT DEPARTMENT
Planning Division
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Expenditures
Salaries & Benefits - $ 627,436 $ 1,047,587 $ 1,185,189 $ Contractual Services - $ 1,604,341 $ 1,642,762 $ 1,690,298 $ Legal (reimbursable) - $ 323,677 $ 153,000 $ 155,295 $
Planning (reimbursable) - $ 23,011 $ - $ 347,630 $
Material/Supplies/Maintenance - $ 34,599 $ 127,527 $ 120,898 $ Total Expenditures - $ 2,613,064 $ 2,970,876 $ 3,499,310 $ *Prior to FY2024-25, The Planning Division & Building Division financials were combined within the overall Community Development budget . **As of FY2024-25, the Cost Reimbursable charges are separated in both Revenues and Expenditures.

FY2026-27 BUDGET
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/
Maintenance
Contractual
Services
Salaries &
Benefits
191

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Packet Pg. 512 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA

COMMUNITY DEVELOPMENT DEPARTMENT
Building Division
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Expenditures
Salaries & Benefits 1,237,673 $ 432,827 $ 609,340 $ 509,672 $ Contractual Services 1,800,989 $ 657,794 $ 638,418 $ 631,127 $ Planning (reimbursable) 983 $ 79,980 $ 527,333 $ 515,113 $ Material/Supplies/Maintenance 54,860 $ 18,440 $ 19,159 $ 13,194 $ Total Expenditures 3,094,504 $ 1,189,041 $ 1,794,250 $ 1,669,106 $ FY2026-27 BUDGET
*Prior to FY2024-25, The Planning Division & Building Division financials were combined within the overall Community Development budget . **As of FY2024-25, the Cost Reimbursable charges are separated in both Revenues and Expenditures. $-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/
Maintenance
Contractual
Services
Salaries &
Benefits
192

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Packet Pg. 513 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA

COMMUNITY DEVELOPMENT DEPARTMENT
Code Enforcement Division
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Expenditures
Salaries & Benefits 319,188 $ 412,361 $ 576,347 $ 560,343 $ Contractual Services 4,920 $ 42,180 $ 178,900 $ 27,473 $ Material/Supplies/Maintenance 40,388 $ 13,503 $ 17,559 $ 11,541 $ Total Expenditures 364,497 $ 468,043 $ 772,806 $ 599,357 $ FY2026-27 BUDGET
*Prior to FY2024-25, The Planning Division & Building Division financials were combined within the overall Community Development budget . **As of FY2024-25, the Cost Reimbursable charges are separated in both Revenues and Expenditures. $-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/
Maintenance
Contractual
Services
Salaries &
Benefits
193

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Packet Pg. 514 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) 194

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Packet Pg. 515 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Public Works Department
Mission
The mission of the Public Works Department is dedication to excellence, integrity, environmental stewardship, and management of the City’s infrastructure. Public Works supports the Council goals of organizational and fiscal stability, improving and stewardship of infrastructure and broadening public communication and collaboration.

We promote safety and livability through the effective management of streets, parks, facilities, beaches, the Pier, wastewater collections and the Calera Creek Water Recycling Plant.

Public Works’s values include support, trust, and positive culture. Shared behaviors related to these values include the following:

Include everyone; respect, listen to and appreciate others Build strong relationships, be a team player
Develop ourselves and mentor and develop others
Collaborate and work together effectively as one team
Communicate clearly, concisely and candidly
Make sound decisions using facts and data
Hold ourselves and others accountable for delivering results Show initiative, courage and integrity
Deal positively with residents, businesses and other departments and each other Have a can do, find a way attitude and emotional resilience Have a continuous improvement philosophy and practice
Enjoy the journey and have fun – never at an others’ expense Description
The Public Works Department (PW) constructs and maintains the City’s public parks, facilities, roadways, trails, beaches, Pacifica Pier, right of way, storm water and sewer collection system, treatment plant and other infrastructure. Six organizational units (Administration, Parks, Facilities (Bldgs., Lighting) and Ranger Services, Streets, Storm Drain Services and Motor Pool, Engineering Development Services and Engineering Program Services, Solid Waste Management/Environmental Services, Sewer Collections Services and Sewer Plant Management work in coordination to achieve the Department’s overarching goal of ensuring the City’s facilities are safe, functional, and maintained. In addition to providing ongoing maintenance activities, the Public Works Department staff provides information and outreach to City residents, businesses, and the public concerning the Department’s programs, activities, and projects.

Service Priorities:

Manage and maintain the City’s sanitary sewer collection system, pump stations and Calera Creek Water Recycling Plant.
195

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Packet Pg. 516 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Maintain critical infrastructure including parks, beaches, Pacifica Pier, trails, streets, and other public facilities.

Management of the City’s urban forest.

Research and submit for Capital Improvement Program (CIP) grant funding.

Monitor and manage the City’s solid waste franchise agreement.

Act as staff liaison for the City’s Beatification Advisory Commission.

Plan, design and implement active transportation projects to promote social justice and environmental stewardship.

Management of professional design services and construction consultant services.

Implement preventive street maintenance program to reduce roadway maintenance costs.

Staffing
The Public Works Department is supported by 65 full-time staff with 29 in the Wastewater Division, 29 in the Field Services Division and 7 in the Engineering Division Engineering Division
Mission
The mission of the Engineering Division is to protect public health and safety, and improve the quality of life of residents and visitors by ensuring safe and functional infrastructure and traffic flow. The division manages public and private work in the City right of way and ensures work meets all applicable local, state and federal regulations and laws.

Description
The Engineering Division is responsible for providing land development review services for private development, issuance of applicable permits, assisting with environmental review, coordination with other divisions, consulting engineers, and other utility providers in the design and construction of new and public and privately funded projects and infrastructure. The division serves as lead on the preparation of studies and master plans of the City’s streets, buildings, parks, trails, sewage, and drainage systems. The division is responsible for the implementation of the capital improvement program, which include acquisition and compliance with state and federal grant projects. The division provides administrative services to the City’s Beautification Advisory Commission, provides technical expertise to the public and other City departments and the Council and manages the City’s solid waste franchise agreement. The division works with the Federal Emergency Management Agency (FEMA) for City reimbursements following county/state/federal disaster proclamations.

Field Services Division
Mission
The mission of the Field Services Division is to proactively maintain and enhance City streets, parks, trails, beach areas, Pacifica Pier, storm drain systems and other infrastructure for continued functionality and safe operational use and to comply with local, state and federal laws. The division also maintains the City’s vehicle fleet. 196

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Packet Pg. 517 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Description
The Field Services Division provides cost-effective and timely maintenance of City infrastructure. This includes road and storm drain maintenance, creating new and replacing existing street signs, sidewalk/curb and gutter maintenance, vegetation management and management of the City’s urban forest, review of City protected tree removals, park, beaches, building maintenance and repair and other City owned infrastructure. The division responds to emergencies within the City by assisting Police and Fire with disaster response and takes the lead on responding to emergencies as needed. In addition, the division prepares for winter storm impacts and manages these impacts during the duration of the storm. The division works closely with the Engineering division and other department personnel to address repairs and facilities and identify larger projects to be included in the Capital Improvement Program. The division provides the staff liaison to the Beautification Advisory Committee.

Wastewater Division
Mission
The mission of the Wastewater Division is to maintain, manage, replace and upgrade the City’s sewer collection system, pump stations and the Calera Creek Water Recycling Plant. The division ensures compliance with local, state and federal laws, and ensures functionality of the system and safe operation. The division manages flows through high rain events and works closely with the Engineering division and other department personnel to identify larger projects to be included in the Capital Improvement Program.

Description
The Wastewater Division provides cost-effective and timely maintenance of City sewer collection system, pump stations and the sewer treatment plant. Work includes cleaning operations, USA marking for other utility work and quarterly reporting to regulatory agencies on system condition. The Wastewater Division works with Public Works Engineering to develop capital improvement programs related to the system and with North Coast County Water District on distribution of recycled water. The Division responds to emergencies and works with residents on their sewer lateral needs and on administration of the Sewer lateral Grant Program. The division provides technical expertise to the public and other divisions.

Fiscal Year 2025-2026 Accomplishments
Completed Civic Center Revitalization Project and receive Certificate of Occupancy. (Goal #2)
Applied for Department and Boating Waterways Grant for Phase 2b and 2c of the Beach Boulevard Infrastructure Resiliency Project. (Goal #2)
Completed Mid-Block Crosswalk Safety Improvement Project (Goal #2) Complete Frontierland Park ADA Improvement Project. (Goal #2) Completed construction of the FY 25-26 Pavement Resurfacing and ADA Ramp Projects. (Goal #2)
Completed Fire Station 71 & Annex Garage Roof Project (Goal #2) Cleaned 97 miles of sanitary sewer.(Goal #2)
197

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Packet Pg. 518 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) CCTV 15 miles of our sewer system. (Goal #2)
26 Lateral compliance certificates.

Completed the Sharp Park PDA Pedestrian Improvements Project. (Goal #2) Completed the Lower Linda Mar Rehabilitation and Repair Project. (Goal #2) Completed the Linda Mar Pump Station Upgrade Project. (Goal #2) Substation completionof the UV Disinfection System Replacement Project. (Goal #2) Completion of the Rockaway Pump Station Rehabilitation and Repair Project. (Goal #2) Completion of the Collection System Rehabilitation & Replacement Projects: Vallemar and Rockaway Beach Avenue Phase 2 emergency project (Goal #2) Completed the design of the Collection System Rehabilitation & Replacement Projects:

Vallemar and Rockaway Beach Avenue Phase 2 and submitted a Water Infrastructure Finance and Innovation Act Application (Goal #2)
Awarded and began work on the Wastewater Facilities Master Plan Project (Goals #2 and #4)
Award and begin design of the CCWRP Photovoltaic System Improvement Project (Goal #2)
Complete the WW Plant Supervisory Control Data Acquisition Project (Goal #2) Hired and trained 2 New Engineers for FS/Engineering. (Goal #1)Completed minor improvements at Palmetto Mini Park
Maintained 37 buildings, 16 parks/playgrounds, 90 centerline miles of streets and 63,000 of creeks and drainage ditches. (Goal #2)
Processed 229 encroachment permits and 62 building permits.

Fiscal Year 2026-2027 Goals / Strategic Priorities
Public Works goals for the FY 2026-2027 include increasing staffing for rising workloads, improving infrastructure and advancing the Beach Boulevard Infrastructure Resiliency .

Complete FEMA related projects from Winter 2022-23. (Goal #2) Complete the FY 2026-27 Pavement Resurfacing and ADA Ramp projects. (Goal #2) Complete the Esplanade Ave. and Palmetto Ave. Bicycle and Pedestrian Improvement Project. (Goal #2)

Complete Sharp Park PDA Resurfacing Project. (Goal #2)Complete Esplanade Trash Capture Device Project (Goal #2)
Complete City Facility Photovoltaic Infrastructure. (Goal #2) Complete City Facility Electric Vehicle Infrastructure. (Goal #2) Complete Construction for the Playground Equipment Improvement Project (aka FY24- 25 Priority Parks Project). (Goal #2)
Complete the Pacifica Pier Rehabilitation Project Design. (Goal #2) Identify funding for Stormwater Master Plan priority projects. (Goal #2) Complete ADA Transition Plan. (Goal #2)
Repairs at EQ Basin. (Goal #2)

Complete the Wastewater Facilities Master Plan (Goals #2 and #4) Complete the design and bid the Collection System Rehabilitation & Replacement Projects: Vallemar and Rockaway Beach Avenue Phase (Goal #2) Bid the first phase of the Easements Rehabilitation and Repair Project (Goal #2) Design and bid the first phase of the CCWRP Piping Improvements Project (Goal #2) 198

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Packet Pg. 519 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Begin design of the Linda Mar Stormwater Pump Station Rehabilitation Project.

Complete the WIFIA funding agreement (Goal #2)
Complete the design and bid the Calera Creek Water Recycling Plant Headworks Feasibility and Improvements Project Phase 1. (Goal #2) Bid CCWRP Photovoltaic System Improvement Project through Design-Build delivery method (Goal #2)
Hire four Wastewater Treatment Plant Operators (Goal 1) Hire one Collection System Operator (Goal 1)
Design and Install flowmeters at the Linda Mar and Rockaway Sewer Pump Stations (Goal #2)
199

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Packet Pg. 520 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET

PUBLIC WORKS DEPARTMENT
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Revenue Sources
Charges for Services 445,674 $ 273,314 $ 260,100 $ 292,701 $ Intergovernmental 179,954 $ - $ - $ - $
Other Revenue 25,340 $ 174,308 $ 51,000 $ 51,510 $
Total Revenues $ 447,622 650,968 $ 311,100 $ 344,211 $
Expenditures
Salaries & Benefits 2,993,230 $ 3,124,267 $ 3,928,096 $ 4,088,698 $ Contractual Services 720,444 $ 886,337 $ 928,336 $ 612,298 $ Material/Supplies/Maintenance 1,023,637 $ 926,554 $ 731,043 $ 586,535 $ Total Expenditures 4,737,311 $ 4,937,157 $ 5,587,474 $ 5,287,531 $ Full-Time Equivalent Employees 61.50 65.00 65.00 65.00
FY2023-24
Actuals
FY2024-25
Actuals
FY2025-26
Actuals
FY2026-27
Goals
Performance Measures
5 3 4 8
500 30,000 15,000 15,000
Number of major capital projects awarded
(construction & design)
Number of linear feet of sewer mains
replaced or rehabilitated
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies
/Maintenance
Contractual
Services
Salaries &
Benefits
200

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Packet Pg. 521 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET
Engineering Division
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Expenditures
Salaries & Benefits 821,112 $ 923,010 $ 1,037,081 $ 1,173,035 $ Contract Services 358,659 $ 321,188 $ 335,072 $ 279,476 $ Material/Supplies/Maintenance 85,043 $ 78,193 $ 108,405 $ 69,224 $ Total Expenditures 1,264,814 $ 1,322,390 $ 1,480,559 $ 1,521,735 $

PUBLIC WORKS DEPARTMENT
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/
Maintenance
Contract Services
Salaries & Benefits
201

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Packet Pg. 522 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET
Field Services Division
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Expenditures
Salaries & Benefits 2,172,118 $ 2,201,257 $ 2,891,014 $ 2,915,663 $ Contract Services 361,786 $ 565,149 $ 593,264 $ 332,822 $ Material/Supplies/Maintenance 938,594 $ 848,361 $ 622,638 $ 517,311 $ Total Expenditures 3,472,497 $ 3,614,767 $ 4,106,916 $ 3,765,796 $

PUBLIC WORKS DEPARTMENT
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/
Maintenance
Contract Services
Salaries & Benefits
202

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Packet Pg. 523 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET
Wastewater Division
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Revenue Sources
Charges for Services 275,524 $ 275,521 $ 640,000 $ 646,400 $ Intergovernmental 18,453,938 $ 19,141,188 $ 20,553,040 $ 20,760,202 $ Other Revenue 121,324 $ 1,074,598 $ 70,000 $ 12,422,700 $ Total Revenues $ 20,491,307 18,850,786 $ 21,263,040 $ 33,829,302 $ Expenditures
Salaries & Benefits 5,301,407 $ 5,420,902 $ 5,496,636 $ 6,450,841 $ Contract Services 4,599,941 $ 601,775 $ 19,655,240 $ 21,475,094 $ Material/Supplies/Maintenance 6,389,042 $ 11,714,298 $ 5,746,346 $ 6,853,143 $ Total Expenditures 16,290,390 $ 17,736,975 $ 30,898,222 $ 34,779,078 $ * The Waste Water Division is funded by Enterprise Funds

PUBLIC WORKS DEPARTMENT
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/
Maintenance
Contract Services
Salaries & Benefits
203

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Packet Pg. 524 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET
Motorpool Division
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Revenue Sources
Charges for Services 1,203,000 $ 1,242,400 $ 1,244,030 $ 1,237,528 $ Other Revenue 212,187 $ 80,329 $ 25,000 $ 25,000 $
Total Revenues $ 1,322,729 1,415,187 $ 1,269,030 $ 1,262,528 $ Expenditures
Salaries & Benefits 582,158 $ 543,704 $ 598,360 $ 673,867 $ Contract Services 36,738 $ 3,090 $ 70,597 $ 48,822 $
Material/Supplies/Maintenance 547,015 $ 870,603 $ 1,985,509 $ 816,339 $ Total Expenditures 1,165,911 $ 1,417,397 $ 2,654,465 $ 1,539,028 $ * The Waste Water Division is funded by Enterprise Funds

PUBLIC WORKS DEPARTMENT
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/
Maintenance
Contract Services
Salaries & Benefits
204

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Packet Pg. 525 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Parks, Beaches & Recreation Department
Department Mission
We proudly serve the Pacifica community by offering enriching recreational programs and essential services that are safe, welcoming, and affordable. Through a commitment to integrity, inclusion, and authenticity, we create opportunities for connection, encourage active lifestyles, and contribute to a vibrant, high-quality life for all.

Description
The Department is made up of support/administrative services and three main program divisions that provide recreation and human services to the community. These divisions are Recreation, Aquatics, Child Care and Senior Services. The Department also has very robust volunteer programs.

Service Priorities
To provide quality recreation and human services to individuals and families.

To promote healthy activities and lifestyles through department programs and activities as well as in the parks, beaches, and outdoor City recreational facilities.

To create opportunities for community engagement through recreation, aquatics, and human service programs.

To collaborate with local and regional partner agencies for the benefit of our participants and the community.

To maintain strong volunteer programs, particularly for youth and seniors, for service and connection to the community.

To provide inclusive programming which encourages participation by all in a fun and safe environment.

Staffing
Department staffing includes (32) full-time positions: (1) Parks, Beaches, and Recreation Director, (1) Deputy Director of Parks, Beaches and Recreation, (4) Supervisors, (1) Child Care Assistant Supervisor, (2) Recreation Coordinators, (5) Child Care Site Coordinators, (3) Senior Services Coordinators (1) Transportation Specialist, (2) Administrative Assistants I-III, (2) Child Care Teachers, (10) Child Care Lead Teachers and approximately (65) part-time staff.

Service Level Changes
The Community Center is now fully accessible and open to the public, allowing for expanded programs and services. Minor renovations are currently underway, including new flooring in select areas, interior repainting, and the purchase of new soft furnishings and a reception desk to enhance the facility’s appearance and functionality. Meanwhile, the Priority Parks Program is transitioning from the design phase to construction, marking a significant milestone in the City’s investment in park improvements. 205

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Packet Pg. 526 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Fiscal Year 2025-2026 Accomplishments
Continued departmental cost recovery and financial sustainability efforts through staff participation in Financial Sustainability Certification trainings and departmentwide fee analysis.

Updated and improved website content, including rentals pages, surf camp information, Frontierland Park information, and implementation of online Child Care enrollment packets.

Expanded outreach and marketing efforts through PLAY Brochure enhancements, increased social media engagement, ActiveNet email campaigns, and promotion through the “Connect with Pacifica” digital newsletter.

Advanced succession planning efforts through updated job descriptions, defined staff responsibilities, and Child Care handbook revisions.

Implemented multiple new departmental policies and procedures including Grant & Funding Acceptance, Mail & Deposits, Spare the Air, PB&R Recruitment Process, Wildlife & Natural Resource, Youth Cell Phone Use, and Surf Camp Permit Packet Process policies.

Supported the PB&R Commission E-Bike Subcommittee process through research, draft report development, and Commission presentations.

Continued implementation of the Priority Parks Project through revised project scope development, contractor approval, and playground equipment procurement.

Completed all three Child Care audits with no findings.

Expanded ActiveNet and recreation software training opportunities for staff and identified key operational improvements for future implementation.

Successfully implemented updated Coastal Commission surf camp requirements, including annual reporting, updated permit processes, and new data collection standards.

Continued implementation of the Meals on Wheels software system and route optimization efforts.

Completed Community Center cosmetic and operational upgrades, including improvements to staff and public spaces.

Fiscal Year 2026-2027 Goals / Strategic Priorities
Continue evaluating cost recovery opportunities, fee structures, sponsorships, partnerships, and operational efficiencies to support long-term fiscal sustainability and address citywide budget challenges. (Goal #1)
Continue supporting the PB&R Commission E-Bike Subcommittee process, including research, community input, and policy recommendation development. (Goal #5)
Continue implementation of the Priority Parks Program in partnership with Public Works, including construction completion, community engagement opportunities, and grand opening celebrations. (Goal #2)
Continue evaluating and improving ActiveNet and recreation software systems, including backend improvements, staff training, and expanded department-wide utilization. (Goal #5)
206

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Packet Pg. 527 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Research and develop an Outdoor Permitting Policy, including policy recommendations and implementation strategies. (Goal #5) Expand modernization of department services and technology, including digital sign-in/sign-out systems, scan pass technology, and additional technology integration opportunities. (Goal #1 / Goal #5)
Develop sponsorship opportunities and partnership strategies for department events, programs, and publications. (Goal #1)
Improve volunteer management systems, including onboarding, training, volunteer tracking, job descriptions, and appreciation efforts. (Goal #5) Expand website content, branding, and social media outreach efforts to improve community awareness and program engagement. (Goal #5)
Provide staff development opportunities through leadership training, certification programs, workshops, and succession planning efforts. (Goal #1) Continue reviewing and updating departmental policies, operational procedures, and internal accountability systems. (Goal #1)
Expand and strengthen community partnerships, volunteer opportunities, and intergenerational programming initiatives throughout all divisions. (Goal #5) Child Care Services
Mission
We strive to provide quality licensed Child Care services for families of Pacifica and surrounding cities. Our program utilizes a developmentally appropriate curriculum and practices in a warm, caring, and safe environment to enhance each child's physical, social, intellectual, and emotional development.

Description
City of Pacifica Child Care Services is licensed by the State of California Department of Social Services to provide before and after-school care for children age 5 to 13 years old at three elementary school sites and preschool services for children age 2.0 to 5 years old at three sites in Pacifica.

Service Priorities
Provide school-age and preschool services to Pacifica residents and surrounding communities in a caring, healthy, and safe environment that stimulates cognitive and social emotional development.

Provide Child Care services for families from all social and economic backgrounds so their children will be given the best start to their adult lives.

Educate, care for, and prepare the children in our programs for their future as respectable and responsible citizens.

Provide and expand enrichment activities for all enrolled children.

Expand the recruitment and retention efforts to employ qualified and effective Child Care employees.
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Packet Pg. 528 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Fiscal Year 2025-2026 Accomplishments
Secured over $2 million dollars in local, County, State, and Federal grant funding to provide quality free and reduced cost Child Care services for Pacifica youth, helping support working families and maintain affordability for residents living in Pacifica and surrounding communities.

Received $15,175 in Quality Rating Improvement System (QRIS) funding to support purchases of books and literacy materials for multilingual learners, inclusive classroom materials for children with differing abilities and high-quality learning experiences for children enrolled in the program.

Received $30,000 from Pacificans Care to help support Child Care swimming lessons, field trips, enrichment activities and program operations.

Received over $186,000 in one-time stipends from CDE (California Department of Education), CCDD (Child Care and Development Division) and SMCOE (San Mateo County Office of Education to support Child Care program operations and services.
418 children enrolled across all Child Care programs.

Facilitated interactive, family-centered workshops designed to strengthen family engagement, enhance communication and foster positive, connected relationships among children and their families.

Provided three professional development trainings for Child Care staff to strengthen subject matter expertise and support the completion of professional growth hours required for renewal of their California Commission on Teacher Credentialing Permits.

Continued implementation and utilization of CLASS 2nd Edition (Classroom Assessment Scoring System) an evidence-based assessment tool used to measure and strengthen teacher-child interactions in order to support positive early learning and developmental outcomes for young children.

All Child Care program audits were successfully completed with zero findings, reflecting compliance with fiscal, contractual, and program requirements.

Launched an online Child Care enrollment process to provide families with a more efficient, accessible, and user-friendly digital registration experience.

The school-age CMR (Contract Monitoring Review) process was successfully completed by CDSS (California Department of Social Services), documenting the program’s compliance with contract requirements and overall operational success.

Entered into agreement with San Mateo County, The Magic Tooth Bus to provide accessible on-site dental education, screenings, and preventive oral health services for children enrolled in City of Pacifica Child Care programs.

Fiscal Year 2026-2027 Goals / Strategic Priorities
Continue to provide quality Child Care services for families from all social and economic backgrounds to encourage children to live their best lives. (Goal #1) 208

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Packet Pg. 529 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Continue to expand recruitment and retention efforts to employ qualified and professional Child Care employees. (Goal #1)
Foster the development of positive behavior among children in the Pacifica community by promoting civic awareness, respect for others, personal responsibility, and conscientious citizenship through enrichment activities, community engagement, and social-emotional learning opportunities. (Goal #5) Increase family participation at Parent Action Committee (PAC) meetings to bridge the relationships between program administration and families. (Goal #5) Increase the number of permit-qualified employees to assist with teacher/child ratio compliance. (Goal #1)
Potential expansion of afterschool and toddler programs to increase the availability of Child Care services and better meet the needs of families within the community. (Goal # 1)
Implementation of the DRDP Online system (Desired Results Developmental Profile) to enhance the tracking of children’s developmental progress and streamline assessment and reporting processes. (Goal #1) Potential replacement of portable classrooms at school-age sites in partnership with the Pacifica School District to support safe, high-quality learning environments for children. (Goal #5)
Recreation & Aquatics Services
Mission
Our mission is to enrich the community through safe, welcoming, and diverse recreation and aquatics programs that support lifelong wellness, learning, and fun.

Description
Recreation and Aquatic Services oversee year-round programs that include youth activities, recreation and aquatic classes for all ages, facility reservations, and community outreach initiatives and special events.

Service Priorities
Provide safe, healthy, engaging, and quality recreation, aquatic classes, and special event programs, classes, and activities for individuals and families.

Provide and expand quality year-round swimming lessons for all ages, contributing to a water-safe community.

Provide clean, safe, and well-maintained facilities for all to enjoy.

Invest in staff training and development to promote a culture of safety, accountability, and proactive risk management across all programs and facilities.

Fiscal Year 2025-2026 Accomplishments
The Youth Advisory Board hosted and helped execute special events such as, Pacifica Arbor Day, the Pacifica Pride, and the two J-Teen Dances. 209

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Packet Pg. 530 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Hosted the 59th annual Junior Olympics at Terra Nova High School. This two-day track meet consisted of eight schools participating, with approximately 550 athletes.

Successfully executed two Epic Eggventure’s Events (one at Frontierland Park and one at Fairmont Park) with an estimated total of 1,200 attendees.

Successfully held our yearly Elf Market consisting of 43 holiday arts and crafts vendors.

Successfully held Annual Halloween Boo Bash with a carnival and a haunted house. Estimated attendance of 600 people.

Hosted a Summer Adventure Camp with an average of 70 children per week for 9 weeks.

Organized the 2025 Fun Fest at the Fog Fest with over 300 attendees, along with the annual Fog Jog with 92 runners.

Provided 42.5 hours of adult lap swim and two hours of recreation swim a week throughout the year. In addition, provided 150 swimming lessons, hosted 3 weeks Wet & Wild camp and hosted adult water polo, seven swim meets and three San Francisco Marionettes Artistic Swimming Performances.

Hosted water safety trainings for Sea Cadets and Fire Department, three Surf Survival Apena courses and four American Red Cross Lifeguarding Courses for the public.

Supported the Pacifica Sea Lions Aquatic Club with providing practice space and swim meets year-round, training approximately 250 athletes five days a week.

Hosted a Surfing Santa Holiday Event & Pumpkin Plunge Halloween Event at the pool.

Fiscal Year 2026-2027 Goals / Strategic Priorities
Continue to hold fun, safe, and engaging special events including the 4th of July Rocket Run and family festivities, Fun Fest and Fog Jog, Halloween Boo Bash, Pacifica Polar Palooza, Epic Egg-venture, Arbor Day, and the Aquatic Pumpkin Plunge. (Goal #1)
Hold four weeks of Wet and Wild Water Camp for the youth. (Goal #1) Hold Adventure Camp at Pacifica School District Offices (on the campus that was the former home of the Ocean Shore Elementary School) this year, consisting of 9 weeks of programming and 70-80 kids per week. (Goal #1) Examine sponsorship opportunities for events and programs (Goal #1) Continue expanding contract class offerings to provide diverse, high-quality recreational and educational opportunities that meet the evolving needs and interests of the community. (Goal #1)
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Packet Pg. 531 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Senior Services
Mission
The Senior Services Division aims to serve as the community’s central resource for enhancing the quality of life for older adults. We are dedicated to supporting seniors, their caregivers, and the broader community through programs and services that reduce isolation, foster social connection, and promote independence, health, and well-being.

Description
A vibrant multi-purpose senior center open Monday through Friday, offering a range of essential services and programs including the Congregate Nutrition Lunch Program, Meals on Wheels, senior transportation, and information and referral assistance. The center also hosts approximately 40 weekly classes, as well as a variety of social groups, clubs, activities, and resources designed to support and enrich the lives of older adults.

Service Priorities
Provide nutritional support to homebound seniors through Meals on Wheels (MOW).

Offer nutritious in-person congregate meals that encourage socialization and enjoyment of quality entertainment.

Hold quarterly nutritional trainings during congregate lunch.

Promote a safe, welcoming environment for seniors to socialize while eating, exercising, playing, or hanging out.

Provide information and resource services that connect seniors (individuals) with community resources and services to meet diverse needs, offering free, confidential, and accessible support.

Offer transportation for seniors through our Connect a Ride (CaR) program with Serra Cab.

Create meaningful opportunities for senior members to contribute their time and skills to center programs and activities, fostering engagement, connection, and community impact.

Fiscal Year 2025-2026 Accomplishments
Seniors in Action (SIA) membership reached over 650 members.

The Connect a Ride (CaR) program has 644 registered participants.

The Home Delivery Meal Program (MOW) currently serves over 101 participants per day and has delivered over 23,000 meals this year.

Completed additional software training, and a new Meals on Wheels Coordinator was onboarded and trained to support implementation efforts.

Continued to offer a wide range of free to low-cost recreation programs, including dance, arts, crafts, games, and exercise. The program offered over 50 classes or educational presentations facilitated by paid contractors, volunteers, or guest speakers.

Following an unexpected $100,000 grant reduction in July 2025, the Senior Supervisor developed and maintained an updated budget tracking spreadsheet 211

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Packet Pg. 532 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) for monthly review to monitor expenditures and ensure the meal program remained within budget.

Work with the Seniors in Action (SIA) Council to identify new program opportunities and support the transition to an online registration system.

Successfully implemented ActiveNet for Senior Services program registration, with registration now underway and ongoing system improvements in progress.

Held an annual volunteer appreciation event with the theme “the sweetness of service” for over 80 volunteers.

Completed Community Center improvements, including updated soft furnishings and enhancements to high-use senior program areas.

Received a generous $30,000 donation from Pacificans Care to support our Senior Services programs. This funding has helped cover the costs of senior trips, a senior dance featuring a live band, and various program-related expenses.

Hosted AARP who assisted 219 seniors with tax preparation.

Fiscal Year 2026-2027 Goals / Strategic Priorities
Explore ways to increase awareness, participation, and community engagement for senior services and programs through targeted outreach, marketing efforts, and community partnerships. (Goal #1)
Improved the Community Center computer lab and expanded technology programming opportunities to support digital literacy, technology access, and intergenerational learning. (Goal #1/ Goal #5)
Increase participation and community awareness of the Congregate Meal Program through expanded outreach, improved program visibility, and enhanced participant engagement opportunities. (Goal #1)
Successfully transition senior participants to the Department’s new ActiveNet registration system through outreach, education, improved communication, and coordinated program scheduling. (Goal #1 / Goal #5)
Develop and implement standardized volunteer processes and procedures to improve recruitment, training, communication, and program support within Senior Services (Goal #1).
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Packet Pg. 533 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET

PARKS, BEACHES & RECREATION DEPARTMENT
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Revenue Sources
Charges for Services 2,712,138 $ 2,829,001 $ 2,691,700 $ 2,709,835 $ Intergovernmental 2,980,145 $ 3,868,501 $ 2,539,924 $ 2,285,000 $ Other Revenue 172,843 $ 189,368 $ 171,400 $ 173,114 $
Total Revenues $ 6,886,870 5,865,126 $ 5,403,024 $ 5,167,949 $ Expenditures
Salaries & Benefits $ 4,184,178 $ 4,639,669 $ 5,305,165 $ 5,269,421 Contract Services $ 633,422 $ 484,929 $ 525,400 $ 506,894 Material/Supplies/Maintenance 1,008,408 $ 1,220,815 $ 1,303,329 $ 1,080,664 $ Total Expenditures 5,826,007 $ 6,345,412 $ 7,133,895 $ 6,856,979 $ Full-Time Equivalent Employees 33.50 33.50 33.50 32.50
FY2023-24
Actuals
FY2024-25
Actuals
FY2025-26
Actuals
FY2026-27
Goals
Performance Measures
Number of Special Event Participants 7,795 8,765 5,580 6,000 Number of Recreation Contract Classes 232 279 262 300
Number of Summer Camp Attendees 312 585 484 500
Number of Weekend Community Center Rentals 24 72 76 80
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/Mai
ntenance
Contract Services
Salaries & Benefits
213

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Packet Pg. 534 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET
Recreation Division
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Expenditures
Salaries & Benefits 680,376 $ 765,485 $ 647,003 $ 578,553 $ Contract Services 391,113 $ 221,291 $ 177,100 $ 179,758 $ Material/Supplies/Maintenance 328,218 $ 269,635 $ 267,504 $ 242,494 $ Total Expenditures 1,399,706 $ 1,256,411 $ 1,091,607 $ 1,000,805 $

PARKS, BEACHES & RECREATION DEPARTMENT
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/
Maintenance
Contract Services
Salaries & Benefits
214

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Packet Pg. 535 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET
Aquatics Division
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Expenditures
Salaries & Benefits 368,555 $ 422,715 $ 407,635 $ 435,966 $ Contract Services 308,592 $ 116,769 $ 96,000 $ 97,441 $ Material/Supplies/Maintenance 23,489 $ 210,781 $ 173,400 $ 269,567 $ Total Expenditures 700,636 $ 750,265 $ 677,035 $ 802,974 $

PARKS, BEACHES & RECREATION DEPARTMENT
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/
Maintenance
Contract Services
Salaries & Benefits
215

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Packet Pg. 536 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
FY2026-27 BUDGET
Childcare Division
Amended Proposed
Actual Actual Budget Budget
2023-24 2024-25 2025-26 2026-27
Expenditures
Salaries & Benefits 2,458,583 $ 2,680,246 $ 3,263,692 $ 3,504,551 $ Contract Services 206,071 $ 185,168 $ 330,600 $ 309,170 $ Material/Supplies/Maintenance 437,749 $ 478,891 $ 685,426 $ 384,832 $ Total Expenditures 3,102,403 $ 3,344,306 $ 4,279,718 $ 4,198,553 $

PARKS, BEACHES & RECREATION DEPARTMENT
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
2023-24 2024-25 2025-26 2026-27
Material/Supplies/
Maintenance
Contract Services
Salaries & Benefits
216

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Packet Pg. 537 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
Other Funds

217

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Packet Pg. 538 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

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Packet Pg. 539 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
Enterprise Funds

219

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Packet Pg. 540 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

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Packet Pg. 541 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Enterprise Funds
Enterprise Funds are used to account for services
that are financed and operated in a manner similar
to private business enterprise. The intent of the
City is that the costs of providing the services to the general public on a continuing basis be financed
primarily through user charges.

Sewer Charge (Fund 518)
Description
The Sewer Operating/Capital Fund is a restricted
fund. The fund accounts for the provision of sewer
services to residents and businesses of the City. All activities necessary to provide such services are accounted for in this fund including, but not limited to, administration, operations, capital improvements, maintenance, financing, billing and collections.

Goals and Objectives
Protect the health and welfare of the community by ensuring the continuous uninterrupted operation of wastewater collection and transmission systems to every extent possible to meet all Federal, State and local standards.

Provide appropriate and economical maintenance and repair of the wastewater collection and transmission system and its appurtenances.

Fund the cost of collection and transmission of the wastewater system.

Continue to repair and improve damaged or substandard sections of the sanitary sewer system to ensure proper operating conditions by using a program that provides cleaning, preventive maintenance, and repair of the system.

Provide expedient response to emergency
situations.

Replace sewer collection lines that have
infiltration or damage and ensure integrity of
the sewer collection system.

Conduct an annual review of the capital needs
and sewer rates to ensure adequate resources
are available to fund requirements.
221

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Packet Pg. 542 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Beach Parking Fund (Fund 535)
Description
The Beach Parking Fund was established in August 2013. It is an unrestricted fund that accounts for the provision of beach parking services to residents and visitors of Pacifica and includes all revenues and expenses associated with the administration, operations, capital improvements, maintenance, billing and collections related to Beach Parking program.

Goals and Objectives
Maintain operational and user-friendly Beach parking system.

Ensure smooth operation of the fund based on fees collected from users and all proceeds from these operations are reinvested back into the community in the form of improving the Parking System and health, safety and welfare of the community.
222

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Packet Pg. 543 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) City of Pacifica
Sewer Charge Fund(518)
Statement of Revenue, Expenditures and Changes in Net Assets Adopted Amended Proposed
Actual Actual Actual Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes - $ - $ - $ - $ - $ - $
Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental - $ - $ - $ - $ - $ - $
Other Revenue 2,365,693 $ 1,931,998 $ 2,435,369 $ 1,710,000 $ 1,710,000 $ 14,079,100 $ Charges for Services 18,348,544 $ 18,453,938 $ 19,141,188 $ 20,553,040 $ 20,553,040 $ 20,760,202 $ Total Revenue 20,714,237 $ 20,385,935 $ 21,576,556 $ 22,263,040 $ 22,263,040 $ 34,839,302 $ Expenditures Salaries & Benefits 4,614,230 $ 5,301,407 $ 5,420,902 $ 5,790,980 $ 5,496,636 $ 6,450,841 $ Contract Services 4,582,149 $ 4,599,941 $ 601,775 $ 19,122,982 $ 19,655,240 $ 21,475,094 $ Material/Supplies/Maintenance 6,616,682 $ 6,411,045 $ 11,927,598 $ 5,477,300 $ 5,753,146 $ 6,860,143 $ Debt Service 2,170,657 $ 2,005,178 $ 2,189,576 $ 5,343,168 $ 5,343,168 $ 3,736,326 $ Total Expenditures 17,983,717 $ 18,317,572 $ 20,139,850 $ 35,734,430 $ 36,248,190 $ 38,522,404 $ Excess revenue over
(under) expenditures 2,730,520 $ 2,068,364 $ 1,436,706 $ (13,471,390) $ (13,985,150) $ (3,683,102) $ Other financing sources (uses)
Transfers In - $ - $ - $ - $ - $ - $
Deb Transfers/Allocations Out (500,000) $ (978,700) $ (1,752,800) $ (1,593,932) $ (2,586,746) $ (1,360,781) $ Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital - $ - $ - $ - $ - $ - $
Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) (500,000) $ (978,700) $ (1,752,800) $ (1,593,932) $ (2,586,746) $ (1,360,781) $ Excess revenue and other
sources over (under) expenditures
and other uses 2,230,520 $ 1,089,664 $ (316,094) $ (15,065,322) $ (16,571,896) $ (5,043,883) $ Beginning Net Assets, July 1 $ 33,598,317 30,809,875 $ 34,687,980 $ 34,371,885 $ 34,371,885 $ 17,799,988 $ Restated 557,922 $
Ending Net Assets, June 30 (Projected) $ 34,687,980 33,598,317 $ 34,371,885 $ 19,306,562 $ 17,799,988 $ 12,756,105 $ *Enterprise Funds and Internal Service Funds include capital investments and depreciation, the above does not represent cash balance 223

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Packet Pg. 544 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actuals Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes - $ - $ - $ - $ - $ - $
Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental - $ - $ - $ - $ - $ - $
Other Revenue 3,883 $ 4,439 $ - $ 5,000 $ 5,000 $ 5,050 $ Charges for Services 455,028 $ 467,587 $ 413,082 $ 520,000 $ 520,000 $ 521,350 $ Total Revenue 458,911 $ 472,026 $ 413,082 $ 525,000 $ 525,000 $ 526,400 $ Expenditures Salaries & Benefits 452,234 $ 456,256 $ 412,390 $ 491,272 $ 489,292 $ 535,837 $ Contract Services 5,091 $ 14,904 $ 6,774 $ 10,700 $ 10,700 $ 10,861 $ Material/Supplies/Maintenance 88,274 $ 141,957 $ 86,724 $ 66,604 $ 66,604 $ 67,379 $ Debt Service - $ - $ - $ - $ - $ - $
Total Expenditures 545,599 $ 613,116 $ 505,888 $ 568,576 $ 566,596 $ 614,077 $ Excess revenue over
(under) expenditures (86,687) $ (141,091) $ (92,807) $ (43,576) $ (41,596) $ (87,677) $ Other financing sources (uses)
Transfers In - $ - $ - $ - $ - $ - $
Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital - $ - $ - $ - $ - $ - $
Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) - $ - $ - $ - $ - $ - $
Excess revenue and other
sources over (under) expenditures
and other uses (86,687) $ (141,091) $ (92,807) $ (43,576) $ (41,596) $ (87,677) $ Beginning Net Assets, July 1 $ 186,299 272,986 $ 45,208 $ (47,599) $ (47,599) $ (89,195) $ Ending Net Assets, June 30 (Projected) $ 45,208 186,299 $ (47,599) $ (91,175) $ (89,195) $ (176,872) $ *Enterprise Funds and Internal Service Funds include capital investments and depreciation, the above does not represent cash balance City of Pacifica
Parking Fund(535)
Statement of Revenue, Expenditures and Changes in Net Assets 224

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Packet Pg. 545 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
Special Revenue and Capital Funds

225

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Packet Pg. 546 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

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Packet Pg. 547 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Special Revenue and Capital Project Funds
Special Revenue Funds and Capital Project Funds are used to account for the proceeds of specific revenue sources that are legally or contractually restricted as to their use in most instances.

In most cases these funds cover Capital Improvement Program projects for infrastructure improvements and maintenance. The capital improvement projects that are funded in FY 2025-26 are detailed in a separate Five-Year Capital Improvement Program budget document.

Supplemental Law Enforcement Services (SLEFS) Fund (Fund 207) Description The SLES Fund (Fund 7) is a restricted fund that was created to account for revenues and expenditures
associated with money allocated by the legislature to all cities and counties throughout the state to supplement
front line law enforcement services.

Goals and Objectives
Ensure these valuable special resources are used to
supplement local law enforcement efforts in the
community.

Measure A Fund (Fund 209)
Description
The Measure A Fund is a restricted fund. The
fund accounts for the expenditures made for
streets and roads and is funded by locally
approved Measure W revenue measure.

Goals and Objectives
Use the Measure A funds to leverage
Federal, State, County and local
government agency grants.

Implement programs that are defined to
meet needs for street and road improved
infrastructure.

Gas Tax Maintenance Fund (Fund 210)
Description The Gas Tax Maintenance Fund is a restricted fund. Gas tax revenue is allocated to cities from the State in accordance with the Streets and Highways Code sections 2103, 2105, 2106, and 2107, and SB1 funding. The City uses these tax proceeds mainly for streets and road maintenance and minor improvements.
227

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Packet Pg. 548 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Goals and Objectives
Maintain City streets and
roads, including gutters and
sidewalks, in accordance
with the City’s Pavement
Management Program.

Give priority to the safety of
the public who use the City’s streets, roads, and sidewalks.

Measure W Fund (Fund 211)
Description The Measure W Fund is a restricted fund. The fund accounts for the expenditures made for streets and roads and is funded by locally approved Measure W revenue measure.

Goals and Objectives
Use the Measure W funds to leverage Federal, State, County and local government agency grants.

Implement programs that are defined to meet needs for street and road improved infrastructure.

Street Improvement Fund (Fund 213)
Description
The Street Construction Fund is a restricted fund. The fund accounts for the expenditures made for streets and roads and is funded by grants and other special revenues including development impact fees.

Goals and Objectives
Maximize use of Federal, State, County and local government agency grants.

Implement programs that are defined to meet needs for improved infrastructure.

NPDES Stormwater (Fund 216)
Description
The NPDES (National Pollution Discharge Elimination
System) Stormwater Fund was established in fiscal
year 1994-95 to account for revenues and
expenditures associated with Federal and State
mandated stormwater operations.

Goals and Objectives
Ensure City complies with the Federal and State Storm water permits. 228

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Packet Pg. 549 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Housing Action Fund (Fund 221)
Description
It was recommended to create a new Housing Action Fund to develop housing programs, including affordable housing. The creation of this new fund would prevent the potential comingling of legally restricted development-based revenues in the Housing inLieu Fund (Fund 24) with unrestricted ERAF revenues allocated towards housing programs by Council policy. Staff created the new Housing in Action (Fund 21) and transferred previously allocated ERAF funds in there.

Goals and Objectives
Develop affordable housing programs.

Prevent the potential comingling of legally restricted development-based revenues in the Housing in-Lieu Fund with unrestricted ERAF revenues.

Housing In-Lieu Fund (Fund 224)
Description
The Housing In-Lieu Fund is a restricted fund. The City receives funds for Housing InLieu fees from new developments. These funds are used for the development of affordable housing programs in the City.

Goals and Objectives
Develop a plan to institute affordable housing
programs.

Provide affordable housing programs that
meet statutory requirements and the needs
of the community.

Parking In-Lieu Fund (Fund 225)
Description
The Parking In-Lieu Fund is a restricted fund. The City receives funds for Parking InLieu fees from new developments. These funds are used for the development of Parking projects in the City.

Goals and Objectives
Set fees and collect appropriate amounts necessary to help fund City parking projects.

Develop and implement plans needed to mitigate the lack of onsite parking on new development and meet the parking needs of the community. 229

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Packet Pg. 550 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Roy Davies Trust Fund (Fund 227)
Description
The Roy Davies Trust Fund is a restricted fund.

This fund was established in 2006 to account
for a $3.9 million donation by a private individual
which is restricted for specific purposes. The
funds are to be used to help acquire, build,
remodel, improve, support, and maintain the
equipment, buildings, grounds, yard, gardens, and landscaped areas of the various parks, beaches, and recreational area located in Pacifica, to conduct related educational and recreational programs for the benefit of the general public. Use of the donation principal requires a 4/5 City Council majority approval.

Goals and Objectives
Develop plans for improving the parks, beaches, and recreational areas in the City.

Provide education and recreational programs for the benefit of the community.

Park, Beaches and Recreation (PB&R) Special Revenue (Fund 228) Description The PB&R Special Revenue fund is a restricted fund.

This fund was established to account for various
donations specifically designated for Park, Beaches and Recreation activities.

Goals and Objectives
Maximize utilization of donations for Park,
Beaches and Recreation activities.

Tree Replacement Fund (Fund 229)
Description The Tree Replacement Fund is a restricted fund that was created with the repeal and replacement of the City Tree Ordinance. This fund is used to further the purposes set forth in the new tree ordinance which included revenue, penalties, donations, grants, and other money allocated by council related to Trees in the City of Pacifica.

Goals and Objectives
Purchasing, planting, maintenance, preservation of trees within the City to remain in a naturalistic state in perpetuity.

Supporting programs for the purpose of increasing the tree canopy within the City of Pacifica
230

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Packet Pg. 551 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Disaster Accounting Fund (Fund 238)
Description The Disaster Accounting Fund is a restricted fund. This fund was established to account for all revenues received and expenditures incurred due to natural and man-made disasters.

Goals and Objectives
Provide City Staff with project accounting numbers to properly track and account for the cost of disasters.

To maximize Federal and/or State assistance and reimbursement eligibility.

Highway 1 Improvement (Fund 312)
Description
The Highway 1 Improvement Fund is a restricted fund. This fund is financed by traffic impact mitigation fees as outlined in the Pacifica
Municipal Code (Section 8-15.01 to Section 8-15.06 and
are used for capital improvements to Highway 1.

Goals and Objectives
Maximize utilization of Federal, State, County and
local governmental agency grants.

Recover costs associated with development.

Implement programs that are defined to meet
needs for improved infrastructure.

Manor Drive Improvement (Fund 314)
Description
The Manor Drive Improvement Fund is a restricted
fund. This fund was established to account for the
Manor Drive/Palmetto Avenue/Oceana Boulevard
intersection construction and is financed by traffic
impact mitigation fees as outlined in the Pacifica
Municipal Code (Section 8-18.01 to Section 8-18.06).

Goals and Objectives
Maximize utilization of Federal, State, County and local governmental agency grants.

Recover costs associated with development.

Implement programs that are defined to meet needs for improved 231

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Packet Pg. 552 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Planned Local Drainage (Fund 319)
Description
The Planned Local Drainage Fund is a restricted
fund. Revenues are derived from fees levied on
new construction in local districts. Funds can be
utilized only for the drainage system in those
particular districts.

Goals and Objectives
Recover storm drain mitigating costs associated with developments.

Ensure proper draining infrastructure in each local district.

General Capital Improvement (Fund 322)
Description
The General Capital Improvement Fund is an unrestricted fund. The General Capital Improvement Fund is used to account for revenues derived from fees and apportionments from General Fund to be used for the acquisition, construction, and improvement of major capital facilities and technology projects of the City.

Goals and Objectives
Provide funding for CIP projects from the General Operating Fund (Fund 101).

Provide unrestricted funds for a variety of desired Capital projects.

Frontierland Remediation (Fund 323)
Description
The Frontierland Park fund restricted fund. The fund
accounts for a remediation fee, which is used by the
City to fund remediation efforts related to the closed
landfill site at the Frontierland Park location. Recology of the Coast, the City’s recyclable/organic materials
and solid waste collection franchisee pays the City a
remediation fee of $6,250 per month ($75,000
annually).

Goals and Objectives
Maintain remediation efforts for closed landfill
site.
232

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Packet Pg. 553 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Park In-Lieu – Capital Improvement Fund (Fund 326)
Description
The Park In-Lieu – Capital Improvement Fund is a
restricted fund. The City accounts for capital
projects funded with Park In-Lieu fees.

Goals and Objectives
Develop plans for park improvements.

Provide park improvements that meet the
needs of the community.

Pacifica Library Fund (Fund 331)
Description The Pacifica Library Fund is a restricted fund. This fund is used to track sources, such as grants and uses of funds related to the construction of Pacifica’s Library.

Goals and Objectives
Develop plans for library improvements.

Provide Library improvements that meet the needs of the community. 233

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Packet Pg. 554 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actual Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes - $ - $ - $ - $ - $ - $
Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental 158,565 $ 186,159 $ 194,663 $ 150,000 $ 150,000 $ 151,500 $ Other Revenue 8,780 $ 23,584 $ 48,715 $ - $ - $ - $
Charges for Services - $ - $ - $ - $ - $ - $
Total Revenue 167,345 $ 209,743 $ 243,378 $ 150,000 $ 150,000 $ 151,500 $ Expenditures Salaries & Benefits 38,596 $ 68,744 $ 32,845 $ 19,800 $ 19,800 $ 58,100 $ Contract Services - $ - $ - $ - $ - $ - $
Material/Supplies/Maintenance 35,236 $ 50,765 $ 59,539 $ 117,419 $ 177,194 $ 131,245 $ Total Expenditures 73,832 $ 119,510 $ 92,383 $ 137,219 $ 196,994 $ 189,345 $ Excess revenue over
(under) expenditures 93,513 $ 90,233 $ 150,995 $ 12,781 $ (46,994) $ (37,845) $ Other financing sources (uses)
Transfers In - $ - $ - $ - $ - $ - $
Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital - $ - $ - $ - $ - $ - $
Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) - $ - $ - $ - $ - $ - $
Excess revenue and other
sources over (under) expenditures
and other uses 93,513 $ 90,233 $ 150,995 $ 12,781 $ (46,994) $ (37,845) $ Beginning Net Assets, July 1 $ 319,276 225,763 $ 409,509 $ 560,504 $ 560,504 $ 513,510 $ Ending Net Assets, June 30 (Projected) $ 409,509 319,276 $ 560,504 $ 573,285 $ 513,510 $ 475,665 $ City of Pacifica
SLES Fund (207)
Statement of Revenue, Expenditures and Changes in Net Assets 234

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Packet Pg. 555 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actual Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes 1,338,357 $ 1,302,166 $ 1,281,123 $ 1,428,000 $ 1,428,000 $ 1,456,560 $ Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax 1,338,357 $ 1,302,166 $ 1,281,123 $ 1,428,000 $ 1,428,000 $ 1,456,560 $ Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental - $ - $ 59,000 $ - $ - $ - $
Other Revenue 53,199 $ 80,624 $ 90,463 $ - $ - $ - $
Charges for Services - $ 56,796 $ - $ - $ - $ - $
Total Revenue 1,391,556 $ 1,439,586 $ 1,430,586 $ 1,428,000 $ 1,428,000 $ 1,456,560 $ Expenditures Salaries & Benefits - $ - $ - $ - $ - $ - $ Contract Services 893,384 $ 764,315 $ 1,067,088 $ 856,100 $ 856,100 $ 31,567 $ Material/Supplies/Maintenance 3,860 $ 3,527 $ - $ 174,500 $ 174,500 $ 177,037 $ Total Expenditures 897,244 $ 767,842 $ 1,067,088 $ 1,030,600 $ 1,030,600 $ 208,604 $ Excess revenue over
(under) expenditures 494,312 $ 671,744 $ 363,497 $ 397,400 $ 397,400 $ 1,247,956 $ Other financing sources (uses)
Transfers In 750,000 $ - $ - $ 63,000 $ 63,000 $ - $
Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service (475,000) $ (400,821) $ (389,726) $ (456,873) $ (456,873) $ (433,860) $ Transfers Out - Capital (1,272,735) $ (782,700) $ (861,000) $ (895,400) $ (895,400) $ (450,000) $ Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) (997,735) $ (1,183,521) $ (1,250,726) $ (1,289,273) $ (1,289,273) $ (883,860) $ Excess revenue and other
sources over (under) expenditures
and other uses (503,423) $ (511,777) $ (887,229) $ (891,873) $ (891,873) $ 364,096 $ Beginning Net Assets, July 1 $ 1,943,399 2,446,822 $ 1,431,622 $ 544,394 $ 544,394 $ (347,479) $ Ending Net Assets, June 30 (Projected) $ 1,431,622 1,943,399 $ 544,394 $ (347,479) $ (347,479) $ 16,617 $ City of Pacifica
Measure A Fund (209)
Statement of Revenue, Expenditures and Changes in Net Assets 235

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Packet Pg. 556 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actuals Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes 1,847,286 $ 2,061,771 $ 2,148,630 $ 2,115,064 $ 2,115,064 $ 2,276,629 $ Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes 1,847,286 $ 2,061,771 $ 2,148,630 $ 2,115,064 $ 2,115,064 $ 2,276,629 $ Intergovernmental 58,890 $ 225,135 $ 152,428 $ 380,000 $ 160,000 $ 160,000 $ Other Revenue 46,596 $ 26 $ - $ - $ - $ - $
Charges for Services - $ - $ - $ - $ - $ - $
Total Revenue 1,952,772 $ 2,286,933 $ 2,301,058 $ 2,495,064 $ 2,275,064 $ 2,436,629 $ Expenditures Salaries & Benefits - $ - $ - $ - $ - $ - $ Contract Services 329,526 $ 863,067 $ 1,339,831 $ 1,314,900 $ 1,784,708 $ 1,269,624 $ Material/Supplies/Maintenance 394,841 $ 580,243 $ 385,428 $ 298,555 $ 346,373 $ 359,190 $ Total Expenditures 724,367 $ 1,443,309 $ 1,725,259 $ 1,613,455 $ 2,131,081 $ 1,628,814 $ Excess revenue over
(under) expenditures 1,228,405 $ 843,624 $ 575,800 $ 881,609 $ 143,983 $ 807,815 $ Other financing sources (uses)
Transfers In - $ 130,000 $ - $ - $ - $ - $
Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service (95,400) $ (93,000) $ (93,000) $ (91,375) $ (91,375) $ (86,772) $ Transfers Out - Capital (1,127,100) $ (1,127,100) $ (415,000) $ (431,600) $ (431,600) $ - $ Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) (1,222,500) $ (1,090,100) $ (508,000) $ (522,975) $ (522,975) $ (86,772) $ Excess revenue and other
sources over (under) expenditures
and other uses 5,905 $ (246,476) $ 67,800 $ 358,634 $ (378,992) $ 721,043 $ Beginning Net Assets, July 1 $ (143,690) (149,596) $ (390,167) $ (322,367) $ (322,367) $ (701,360) $ Ending Net Assets, June 30 (Projected) $ (390,167) (143,690) $ (322,367) $ 36,267 $ (701,360) $ 19,683 $ City of Pacifica
Gas Tax Maintenance Fund (210)
Statement of Revenue, Expenditures and Changes in Net Assets 236

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Packet Pg. 557 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actual Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes 584,630 $ 574,066 $ 565,461 $ 571,200 $ 571,200 $ 571,200 $ Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax 584,630 $ 574,066 $ 565,461 $ 571,200 $ 571,200 $ 571,200 $ Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental - $ - $ - $ - $ - $ 83,000 $
Other Revenue 9,103 $ 29,513 $ 71,878 $ - $ - $ 50,000 $ Charges for Services - $ - $ - $ - $ - $ - $
Total Revenue 593,733 $ 603,579 $ 637,340 $ 571,200 $ 571,200 $ 704,200 $ Expenditures Salaries & Benefits - $ - $ - $ - $ - $ - $ Contract Services 952,763 $ 272,250 $ 1,144,714 $ 436,000 $ 436,000 $ 687,000 $ Material/Supplies/Maintenance - $ - $ - $ - $ - $ - $
Total Expenditures 952,763 $ 272,250 $ 1,144,714 $ 436,000 $ 436,000 $ 687,000 $ Excess revenue over
(under) expenditures (359,030) $ 331,330 $ (507,374) $ 135,200 $ 135,200 $ 17,200 $ Other financing sources (uses)
Transfers In 651,035 $ - $ - $ 167,858 $ 167,858 $ - $
Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital - $ - $ - $ - $ - $ - $
Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) 651,035 $ - $ - $ 167,858 $ 167,858 $ - $ Excess revenue and other
sources over (under) expenditures
and other uses 292,005 $ 331,330 $ (507,374) $ 303,058 $ 303,058 $ 17,200 $ Beginning Net Assets, July 1 $ 292,005 - $ 623,335 $ 115,960 $ 115,960 $ 419,018 $ Ending Net Assets, June 30 (Projected) $ 623,335 292,005 $ 115,960 $ 419,018 $ 419,018 $ 436,218 $ City of Pacifica
Measure W Fund (211)
Statement of Revenue, Expenditures and Changes in Net Assets 237

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Packet Pg. 558 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actual Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes 421,210 $ 407,320 $ 421,210 $ 485,000 $ 421,210 $ 421,210 $ Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes 421,210 $ 407,320 $ 421,210 $ 485,000 $ 421,210 $ 421,210 $ Intergovernmental - $ - $ - $ - $ - $ - $
Other Revenue 37,501 $ 91,247 $ 108,397 $ - $ - $ 1,020 $ Charges for Services 175,919 $ 161,806 $ 1,211,783 $ 170,000 $ 170,000 $ 170,000 $ Total Revenue 634,630 $ 660,372 $ 1,741,390 $ 655,000 $ 591,210 $ 592,230 $ Expenditures Salaries & Benefits - $ - $ - $ - $ - $ - $ Contract Services - $ 1,131,795 $ 1,948,220 $ 75,000 $ 113,570 $ 745,000 $ Material/Supplies/Maintenance - $ - $ - $ - $ - $ - $
Total Expenditures - $ 1,131,795 $ 1,948,220 $ 75,000 $ 113,570 $ 745,000 $ Excess revenue over
(under) expenditures 634,630 $ (471,423) $ (206,830) $ 580,000 $ 477,640 $ (152,770) $ Other financing sources (uses)
Transfers In - $ 1,400,000 $ - $ - $ - $ - $
Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital - $ - $ (107,947) $ (230,858) $ (230,858) $ - $ Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) - $ 1,400,000 $ (107,947) $ (230,858) $ (230,858) $ - $ Excess revenue and other
sources over (under) expenditures
and other uses 634,630 $ 928,577 $ (314,777) $ 349,142 $ 246,782 $ (152,770) $ Beginning Net Assets, July 1 $ 634,630 - $ 1,563,207 $ 1,248,430 $ 1,248,430 $ 1,495,212 $ Ending Net Assets, June 30 (Projected) $ 1,563,207 634,630 $ 1,248,430 $ 1,597,572 $ 1,495,212 $ 1,342,442 $ City of Pacifica
Street Improvement Fund (213)
Statement of Revenue, Expenditures and Changes in Net Assets 238

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Packet Pg. 559 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actual Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes 177,730 $ 177,989 $ 178,003 $ 179,200 $ 179,200 $ 177,989 $ Property Tax 177,730 $ 177,989 $ 178,003 $ 179,200 $ 179,200 $ 177,989 $ Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental - $ - $ 49,820 $ 16,300 $ 16,300 $ - $ Other Revenue 7,654 $ 11,551 $ 2,295 $ - $ - $ - $
Charges for Services 6,649 $ 17,612 $ 30,758 $ 15,200 $ 15,200 $ 15,352 $ Total Revenue 192,033 $ 207,152 $ 260,876 $ 210,700 $ 210,700 $ 193,341 $ Expenditures Salaries & Benefits - $ 1,075 $ 1,752 $ - $ - $ - $ Contract Services 72,021 $ 110,716 $ 188,908 $ 284,000 $ 314,359 $ 50,750 $ Material/Supplies/Maintenance 31,020 $ 60,864 $ 56,512 $ 25,300 $ 25,300 $ 29,099 $ Total Expenditures 103,041 $ 172,656 $ 247,172 $ 309,300 $ 339,659 $ 79,849 $ Excess revenue over
(under) expenditures 88,992 $ 34,496 $ 13,703 $ (98,600) $ (128,959) $ 113,492 $ Other financing sources (uses)
Transfers In - $ - $ - $ - $ - $ - $
Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital (132,100) $ (132,100) $ (146,000) $ (151,800) $ (151,800) $ - $ Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) (132,100) $ (132,100) $ (146,000) $ (151,800) $ (151,800) $ - $ Excess revenue and other
sources over (under) expenditures
and other uses (43,108) $ (97,604) $ (132,297) $ (250,400) $ (280,759) $ 113,492 $ Beginning Net Assets, July 1 $ 281,057 330,381 $ 183,453 $ 51,156 $ 51,156 $ (229,602) $ Restated (6,216) $
Ending Net Assets, June 30 (Projected) $ 183,453 281,057 $ 51,156 $ (199,244) $ (229,602) $ (116,110) $ City of Pacifica
NPDES Stormwater Fund (216)
Statement of Revenue, Expenditures and Changes in Net Assets 239

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Packet Pg. 560 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actual Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes - $ - $ - $ - $ - $ - $
Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental - $ - $ - $ - $ - $ - $
Other Revenue - $ 1,747,869 $ 1,725,757 $ - $ - $ - $
Charges for Services - $ - $ - $ - $ - $ - $
Total Revenue - $ 1,747,869 $ 1,725,757 $ - $ - $ - $
Expenditures Salaries & Benefits - $ - $ - $ 246,485 $ 246,485 $ 183,878 $ Contract Services - $ - $ 764,992 $ 380,000 $ 380,000 $ 677,302 $ Material/Supplies/Maintenance - $ - $ - $ - $ - $ - $
Total Expenditures - $ - $ 764,992 $ 626,485 $ 626,485 $ 861,180 $ Excess revenue over
(under) expenditures - $ 1,747,869 $ 960,765 $ (626,485) $ (626,485) $ (861,180) $ Other financing sources (uses)
Transfers In - $ - $ - $ - $ - $ - $
Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital - $ - $ - $ - $ - $ - $
Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) - $ - $ - $ - $ - $ - $
Excess revenue and other
sources over (under) expenditures
and other uses - $ 1,747,869 $ 960,765 $ (626,485) $ (626,485) $ (861,180) $ Beginning Net Assets, July 1 $ - - $ 1,747,869 $ 2,708,634 $ 2,708,634 $ 2,082,149 $ Ending Net Assets, June 30 (Projected) $ 1,747,869 - $ 2,708,634 $ 2,082,149 $ 2,082,149 $ 1,220,969 $ City of Pacifica
Housing Action Fund (221)
Statement of Revenue, Expenditures and Changes in Net Assets 240

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Packet Pg. 561 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actual Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes - $ - $ - $ - $ - $ - $
Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental - $ - $ - $ - $ - $ - $
Other Revenue 6,867 $ 14,821 $ 25,264 $ - $ - $ 15,839 $ Charges for Services - $ - $ - $ - $ - $ - $
Total Revenue 6,867 $ 14,821 $ 25,264 $ - $ - $ 15,839 $ Expenditures Salaries & Benefits - $ - $ - $ - $ - $ - $ Contract Services - $ - $ - $ - $ - $ - $
Material/Supplies/Maintenance - $ - $ - $ - $ - $ - $
Total Expenditures - $ - $ - $ - $ - $ - $
Excess revenue over
(under) expenditures 6,867 $ 14,821 $ 25,264 $ - $ - $ 15,839 $ Other financing sources (uses)
Transfers In - $ - $ - $ - $ - $ - $
Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital - $ - $ - $ - $ - $ - $
Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) - $ - $ - $ - $ - $ - $
Excess revenue and other
sources over (under) expenditures
and other uses 6,867 $ 14,821 $ 25,264 $ - $ - $ 15,839 $ Beginning Net Assets, July 1 $ 250,881 244,014 $ 265,702 $ 290,966 $ 290,966 $ 290,966 $ Ending Net Assets, June 30 (Projected) $ 265,702 250,881 $ 290,966 $ 290,966 $ 290,966 $ 306,805 $ City of Pacifica
Housing In-Lieu Fund (224)
Statement of Revenue, Expenditures and Changes in Net Assets 241

11.i
Packet Pg. 562 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actual Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes - $ - $ - $ - $ - $ - $
Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental - $ - $ - $ - $ - $ - $
Other Revenue 3,268 $ 7,054 $ 12,025 $ 1,764 $ 1,764 $ 1,782 $ Charges for Services - $ - $ - $ - $ - $ - $
Total Revenue 3,268 $ 7,054 $ 12,025 $ 1,764 $ 1,764 $ 1,782 $ Expenditures Salaries & Benefits - $ - $ - $ - $ - $ - $ Contract Services - $ - $ - $ - $ - $ - $
Material/Supplies/Maintenance - $ - $ - $ - $ - $ - $
Total Expenditures - $ - $ - $ - $ - $ - $
Excess revenue over
(under) expenditures 3,268 $ 7,054 $ 12,025 $ 1,764 $ 1,764 $ 1,782 $ Other financing sources (uses)
Transfers In - $ - $ - $ - $ - $ - $
Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital - $ - $ - $ - $ - $ - $
Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) - $ - $ - $ - $ - $ - $
Excess revenue and other
sources over (under) expenditures
and other uses 3,268 $ 7,054 $ 12,025 $ 1,764 $ 1,764 $ 1,782 $ Beginning Net Assets, July 1 $ 119,410 116,142 $ 126,465 $ 138,490 $ 138,490 $ 140,253 $ Ending Net Assets, June 30 (Projected) $ 126,465 119,410 $ 138,490 $ 140,253 $ 140,253 $ 142,035 $ City of Pacifica
Parking In-Lieu Fund (225)
Statement of Revenue, Expenditures and Changes in Net Assets 242

11.i
Packet Pg. 563 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actual Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes - $ - $ - $ - $ - $ - $
Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental - $ - $ - $ - $ - $ - $
Other Revenue 1,450 $ 251,510 $ 150,648 $ - $ - $ - $
Charges for Services - $ - $ - $ - $ - $ - $
Total Revenue 1,450 $ 251,510 $ 150,648 $ - $ - $ - $
Expenditures Salaries & Benefits - $ - $ - $ - $ - $ - $ Contract Services 28,239 $ 594,086 $ - $ - $ 1,830,000 $ 79,110 $ Material/Supplies/Maintenance - $ - $ - $ - $ - $ - $
Debt Service 149 $ 339 $ - $ - $ - $ - $
Total Expenditures 28,388 $ 594,425 $ - $ - $ 1,830,000 $ 79,110 $ Excess revenue over
(under) expenditures (26,938) $ (342,914) $ 150,648 $ - $ (1,830,000) $ (79,110) $ Other financing sources (uses)
Transfers In 300,000 $ - $ - $ - $ - $ - $
Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital (160,000) $ (130,000) $ (100,000) $ - $ - $ - $ Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) 140,000 $ (130,000) $ (100,000) $ - $ - $ - $ Excess revenue and other
sources over (under) expenditures
and other uses 113,062 $ (472,914) $ 50,648 $ - $ (1,830,000) $ (79,110) $ Beginning Net Assets, July 1 $ 2,870,876 2,757,814 $ 2,397,962 $ 2,448,609 $ 2,448,609 $ 618,609 $ Ending Net Assets, June 30 (Projected) $ 2,397,962 2,870,876 $ 2,448,609 $ 2,448,609 $ 618,609 $ 539,499 $ City of Pacifica
PB&R Roy Davies Trust Fund (227)
Statement of Revenue, Expenditures and Changes in Net Assets 243

11.i
Packet Pg. 564 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actual Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes - $ - $ - $ - $ - $ - $
Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental - $ - $ - $ - $ - $ - $
Other Revenue 58,024 $ 113,558 $ 184,490 $ - $ - $ - $
Charges for Services - $ - $ - $ - $ - $ - $
Total Revenue 58,024 $ 113,558 $ 184,490 $ - $ - $ - $
Expenditures Salaries & Benefits 26,774 $ 36,410 $ 41,312 $ 38,137 $ 6,380 $ 6,942 $ Contract Services 136,814 $ 57,356 $ 55,762 $ 5,500 $ 5,500 $ 5,583 $ Material/Supplies/Maintenance 5,176 $ - $ - $ - $ - $ - $ Total Expenditures 168,763 $ 93,767 $ 97,074 $ 43,637 $ 11,880 $ 12,525 $ Excess revenue over
(under) expenditures (110,739) $ 19,791 $ 87,416 $ (43,637) $ (11,880) $ (12,525) $ Other financing sources (uses)
Transfers In - $ - $ - $ - $ - $ - $
Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital - $ - $ - $ - $ - $ - $
Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) - $ - $ - $ - $ - $ - $
Excess revenue and other
sources over (under) expenditures
and other uses (110,739) $ 19,791 $ 87,416 $ (43,637) $ (11,880) $ (12,525) $ Beginning Net Assets, July 1 $ 2,010,221 2,120,960 $ 2,030,012 $ 2,117,428 $ 2,117,428 $ 2,105,547 $ Ending Net Assets, June 30 (Projected) $ 2,030,012 2,010,221 $ 2,117,428 $ 2,073,791 $ 2,105,547 $ 2,093,022 $ City of Pacifica
PB&R Special Revenue Fund (228)
Statement of Revenue, Expenditures and Changes in Net Assets 244

11.i
Packet Pg. 565 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actuals Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes - $ - $ - $ - $ - $ - $
Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental - $ - $ - $ - $ - $ - $
Other Revenue 1,748 $ 150 $ - $ - $ - $ - $
Charges for Services - $ - $ 2,000 $ - $ - $ - $
Total Revenue 1,748 $ 150 $ 2,000 $ - $ - $ - $
Expenditures Salaries & Benefits - $ - $ - $ - $ - $ - $ Contract Services - $ 53,065 $ - $ - $ - $ - $
Material/Supplies/Maintenance - $ - $ 6,699 $ - $ - $ - $ Total Expenditures - $ 53,065 $ 6,699 $ - $ - $ - $
Excess revenue over
(under) expenditures 1,748 $ (52,915) $ (4,699) $ - $ - $ - $ Other financing sources (uses)
Transfers In - $ - $ - $ - $ 55,867 $ - $
Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital - $ - $ - $ - $ - $ - $
Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) - $ - $ - $ - $ 55,867 $ - $ Excess revenue and other
sources over (under) expenditures
and other uses 1,748 $ (52,915) $ (4,699) $ - $ 55,867 $ - $ Beginning Net Assets, July 1 $ 1,748 - $ (51,167) $ (55,867) $ (55,867) $ 0 $ Ending Net Assets, June 30 (Projected) $ (51,167) 1,748 $ (55,867) $ (55,867) $ 0 $ 0 $ City of Pacifica
Tree Replacement Fund (229)
Statement of Revenue, Expenditures and Changes in Net Assets 245

11.i
Packet Pg. 566 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actual Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes - $ - $ - $ - $ - $ - $
Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental 161,280 $ 88,812 $ 450,886 $ - $ - $ - $ Other Revenue 4,800,132 $ 1,747,869 $ 3,725,757 $ - $ - $ - $ Charges for Services - $ - $ - $ - $ - $ - $
Total Revenue 4,961,412 $ 1,836,681 $ 4,176,642 $ - $ - $ - $ Expenditures Salaries & Benefits 17,408 $ 2,227 $ - $ - $ - $ - $ Contract Services 2,356,532 $ 619,319 $ 524,440 $ 125,000 $ 125,000 $ 464,110 $ Material/Supplies/Maintenance 2,887 $ - $ - $ - $ - $ - $ Total Expenditures 2,376,827 $ 621,546 $ 524,440 $ 125,000 $ 125,000 $ 464,110 $ Excess revenue over
(under) expenditures 2,584,586 $ 1,215,135 $ 3,652,203 $ (125,000) $ (125,000) $ (464,110) $ Other financing sources (uses)
Transfers In - $ - $ - $ - $ - $ - $
Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital (1,200,000) $ (1,585,000) $ (659,800) $ - $ - $ - $ Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) (1,200,000) $ (1,585,000) $ (659,800) $ - $ - $ - $ Excess revenue and other
sources over (under) expenditures
and other uses 1,384,586 $ (369,865) $ 2,992,403 $ (125,000) $ (125,000) $ (464,110) $ Beginning Net Assets, July 1 $ 7,472,998 6,088,412 $ 7,103,134 $ 10,095,536 $ 10,095,536 $ 9,970,536 $ Ending Net Assets, June 30 (Projected) $ 7,103,134 7,472,998 $ 10,095,536 $ 9,970,536 $ 9,970,536 $ 9,506,426 $ City of Pacifica
Disaster Accounting Fund (238)
Statement of Revenue, Expenditures and Changes in Net Assets 246

11.i
Packet Pg. 567 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actual Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes - $ - $ - $ - $ - $ - $
Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental 2,401 $ - $ 17,222 $ - $ - $ 4,950,000 $ Other Revenue 17,237 $ 36,249 $ 61,926 $ - $ - $ - $
Charges for Services 21,566 $ 12,540 $ 10,592 $ 5,000 $ 5,000 $ 5,000 $ Total Revenue 41,204 $ 48,789 $ 89,741 $ 5,000 $ 5,000 $ 4,955,000 $ Expenditures Salaries & Benefits 28,763 $ 28,922 $ 26,337 $ 34,848 $ 34,801 $ 36,783 $ Contract Services - $ - $ - $ - $ - $ 5,500,000 $
Material/Supplies/Maintenance 2,050 $ - $ - $ 4,200 $ 4,200 $ 4,263 $ Total Expenditures 30,812 $ 28,922 $ 26,337 $ 39,048 $ 39,001 $ 5,541,046 $ Excess revenue over
(under) expenditures 10,391 $ 19,867 $ 63,404 $ (34,048) $ (34,001) $ (586,046) $ Other financing sources (uses)
Transfers In - $ - $ - $ - $ - $ - $
Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital - $ - $ - $ - $ - $ - $
Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) - $ - $ - $ - $ - $ - $
Excess revenue and other
sources over (under) expenditures
and other uses 10,391 $ 19,867 $ 63,404 $ (34,048) $ (34,001) $ (586,046) $ Beginning Net Assets, July 1 $ 628,641 618,250 $ 648,508 $ 711,912 $ 711,912 $ 677,911 $ Ending Net Assets, June 30 (Projected) $ 648,508 628,641 $ 711,912 $ 677,864 $ 677,911 $ 91,865 $ City of Pacifica
Highway 1 Improvement Fund (312)
Statement of Revenue, Expenditures and Changes in Net Assets 247

11.i
Packet Pg. 568 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actual Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes - $ - $ - $ - $ - $ - $
Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental - $ - $ 1,175,526 $ - $ - $ - $
Other Revenue 10,610 $ - $ 23,101 $ - $ - $ - $
Charges for Services 1,374 $ 1,030 $ - $ - $ - $ - $
Total Revenue 11,984 $ 1,030 $ 1,198,627 $ - $ - $ - $
Expenditures Salaries & Benefits - $ - $ - $ - $ - $ - $ Contract Services 635,822 $ 752,209 $ 541,388 $ - $ - $ - $ Material/Supplies/Maintenance - $ - $ - $ - $ - $ - $
Total Expenditures 635,822 $ 752,209 $ 541,388 $ - $ - $ - $ Excess revenue over
(under) expenditures (623,837) $ (751,179) $ 657,239 $ - $ - $ - $ Other financing sources (uses)
Transfers In - $ - $ 107,947 $ - $ - $ - $
Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital - $ - $ - $ - $ - $ - $
Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) - $ - $ 107,947 $ - $ - $ - $ Excess revenue and other
sources over (under) expenditures
and other uses (623,837) $ (751,179) $ 765,186 $ - $ - $ - $ Beginning Net Assets, July 1 $ 252,053 875,891 $ (499,126) $ 266,060 $ 266,060 $ 266,060 $ Ending Net Assets, June 30 (Projected) $ (499,126) 252,053 $ 266,060 $ 266,060 $ 266,060 $ 266,060 $ City of Pacifica
Manor Drive Improvement Fund (314)
Statement of Revenue, Expenditures and Changes in Net Assets 248

11.i
Packet Pg. 569 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actual Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes - $ - $ - $ - $ - $ - $
Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental - $ - $ - $ - $ - $ - $
Other Revenue 860,178 $ 17,280 $ 29,247 $ - $ - $ - $
Charges for Services 2,217 $ - $ - $ 25,000 $ 25,000 $ 25,000 $ Total Revenue 862,395 $ 17,280 $ 29,247 $ 25,000 $ 25,000 $ 25,000 $ Expenditures Salaries & Benefits - $ - $ - $ - $ - $ - $ Contract Services 97,332 $ 2,369 $ 2,442 $ - $ - $ - $
Material/Supplies/Maintenance - $ - $ - $ 2,100 $ 2,100 $ 2,132 $ Total Expenditures 97,332 $ 2,369 $ 2,442 $ 2,100 $ 2,100 $ 2,132 $ Excess revenue over
(under) expenditures 765,063 $ 14,911 $ 26,805 $ 22,900 $ 22,900 $ 22,868 $ Other financing sources (uses)
Transfers In - $ - $ - $ - $ - $ - $
Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital - $ - $ - $ - $ - $ - $
Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) - $ - $ - $ - $ - $ - $
Excess revenue and other
sources over (under) expenditures
and other uses 765,063 $ 14,911 $ 26,805 $ 22,900 $ 22,900 $ 22,868 $ Beginning Net Assets, July 1 $ 294,874 (470,189) $ 309,785 $ 336,590 $ 336,590 $ 359,490 $ Ending Net Assets, June 30 (Projected) $ 309,785 294,874 $ 336,590 $ 359,490 $ 359,490 $ 382,358 $ City of Pacifica
Planned Local Drainage Fund (319)
Statement of Revenue, Expenditures and Changes in Net Assets 249

11.i
Packet Pg. 570 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actual Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes - $ - $ - $ - $ - $ - $
Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental 8,693 $ 287,040 $ 1,000 $ 450,000 $ 450,000 $ - $ Other Revenue 10 $ 197,191 $ 150,714 $ 70,000 $ 70,000 $ - $ Charges for Services 89,721 $ 87,105 $ 89,302 $ 25,000 $ 25,000 $ 25,000 $ Total Revenue 98,424 $ 571,337 $ 241,016 $ 545,000 $ 545,000 $ 25,000 $ Expenditures Salaries & Benefits 7,865 $ 168,539 $ 274,776 $ 497,987 $ 563,260 $ 44,968 $ Contract Services 7,467,674 $ 7,830,504 $ 2,623,397 $ 50,000 $ 50,000 $ 50,000 $ Material/Supplies/Maintenance - $ - $ - $ - $ - $ - $
Total Expenditures 7,475,539 $ 7,999,044 $ 2,898,173 $ 547,987 $ 613,260 $ 94,968 $ Excess revenue over
(under) expenditures (7,377,115) $ (7,427,707) $ (2,657,157) $ (2,987) $ (68,260) $ (69,968) $ Other financing sources (uses)
Transfers In 5,970,732 $ 2,553,000 $ 734,800 $ 50,000 $ 50,000 $ 94,967 $ Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital - $ - $ - $ - $ - $ - $
Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) 5,970,732 $ 2,553,000 $ 734,800 $ 50,000 $ 50,000 $ 94,967 $ Excess revenue and other
sources over (under) expenditures
and other uses (1,406,383) $ (4,874,707) $ (1,922,357) $ 47,013 $ (18,260) $ 24,999 $ Beginning Net Assets, July 1 $ 5,316,578 6,722,962 $ 441,872 $ (1,480,485) $ (1,480,485) $ (1,498,745) $ Ending Net Assets, June 30 (Projected) $ 441,872 5,316,578 $ (1,480,485) $ (1,433,472) $ (1,498,745) $ (1,473,746) $ City of Pacifica
General Capital Improvement Fund (322)
Statement of Revenue, Expenditures and Changes in Net Assets 250

11.i
Packet Pg. 571 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actual Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes - $ - $ - $ - $ - $ - $
Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental - $ - $ - $ - $ - $ - $
Other Revenue 11,282 $ 7,809 $ 13,141 $ - $ - $ - $
Charges for Services - $ - $ - $ 75,000 $ 75,000 $ 75,000 $ Total Revenue 11,282 $ 7,809 $ 13,141 $ 75,000 $ 75,000 $ 75,000 $ Expenditures Salaries & Benefits - $ - $ - $ - $ - $ - $ Contract Services - $ - $ - $ - $ - $ - $
Material/Supplies/Maintenance - $ - $ - $ - $ - $ - $
Total Expenditures - $ - $ - $ - $ - $ - $
Excess revenue over
(under) expenditures 11,282 $ 7,809 $ 13,141 $ 75,000 $ 75,000 $ 75,000 $ Other financing sources (uses)
Transfers In - $ - $ - $ - $ - $ - $
Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital - $ (280,000) $ - $ - $ - $ - $ Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) - $ (280,000) $ - $ - $ - $ - $ Excess revenue and other
sources over (under) expenditures
and other uses 11,282 $ (272,191) $ 13,141 $ 75,000 $ 75,000 $ 75,000 $ Beginning Net Assets, July 1 $ 412,187 400,905 $ 139,996 $ 153,138 $ 153,138 $ 228,138 $ Ending Net Assets, June 30 (Projected) $ 139,996 412,187 $ 153,138 $ 228,138 $ 228,138 $ 303,138 $ City of Pacifica
Fronteirland Remediations Fund (323)
Statement of Revenue, Expenditures and Changes in Net Assets 251

11.i
Packet Pg. 572 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actual Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes - $ - $ - $ - $ - $ - $
Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental - $ - $ - $ - $ - $ - $
Other Revenue 6,390 $ 13,636 $ 51,650 $ - $ - $ - $
Charges for Services 223,439 $ 142,833 $ 302,150 $ 100,000 $ 100,000 $ 100,000 $ Total Revenue 229,829 $ 156,469 $ 353,800 $ 100,000 $ 100,000 $ 100,000 $ Expenditures Salaries & Benefits - $ - $ - $ - $ - $ - $ Contract Services 374,974 $ 127,693 $ 3,393 $ - $ 109,072 $ - $ Material/Supplies/Maintenance - $ - $ - $ - $ - $ - $
Total Expenditures 374,974 $ 127,693 $ 3,393 $ - $ 109,072 $ - $ Excess revenue over
(under) expenditures (145,145) $ 28,776 $ 350,408 $ 100,000 $ (9,072) $ 100,000 $ Other financing sources (uses)
Transfers In - $ - $ - $ - $ - $ - $
Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital (320,000) $ - $ - $ - $ - $ - $ Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) (320,000) $ - $ - $ - $ - $ - $ Excess revenue and other
sources over (under) expenditures
and other uses (465,145) $ 28,776 $ 350,408 $ 100,000 $ (9,072) $ 100,000 $ Beginning Net Assets, July 1 $ 215,682 680,827 $ 244,458 $ 594,866 $ 594,866 $ 585,794 $ Ending Net Assets, June 30 (Projected) $ 244,458 215,682 $ 594,866 $ 694,866 $ 585,794 $ 685,794 $ City of Pacifica
Park In-Lieu Capital Improvement Fund (326)
Statement of Revenue, Expenditures and Changes in Net Assets 252

11.i
Packet Pg. 573 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actuals Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes - $ - $ - $ - $ - $ - $
Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental - $ - $ - $ - $ - $ - $
Other Revenue 2,117 $ 3,038 $ 5,074 $ - $ - $ - $
Charges for Services - $ - $ - $ - $ - $ - $
Total Revenue 2,117 $ 3,038 $ 5,074 $ - $ - $ - $
Expenditures Salaries & Benefits - $ - $ - $ - $ - $ - $ Contract Services 46,037 $ 26,897 $ - $ 50,000 $ 50,000 $ 8,000 $ Material/Supplies/Maintenance - $ - $ - $ - $ - $ - $
Total Expenditures 46,037 $ 26,897 $ - $ 50,000 $ 50,000 $ 8,000 $ Excess revenue over
(under) expenditures (43,920) $ (23,859) $ 5,074 $ (50,000) $ (50,000) $ (8,000) $ Other financing sources (uses)
Transfers In - $ - $ - $ - $ - $ - $
Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital - $ - $ - $ - $ - $ - $
Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) - $ - $ - $ - $ - $ - $
Excess revenue and other
sources over (under) expenditures
and other uses (43,920) $ (23,859) $ 5,074 $ (50,000) $ (50,000) $ (8,000) $ Beginning Net Assets, July 1 $ 77,222 121,142 $ 53,363 $ 58,437 $ 58,437 $ 8,437 $ Ending Net Assets, June 30 (Projected) $ 53,363 77,222 $ 58,437 $ 8,437 $ 8,437 $ 437 $ City of Pacifica
Pacifica Library Fund (331)
Statement of Revenue, Expenditures and Changes in Net Assets 253

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Packet Pg. 574 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) 254

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Packet Pg. 575 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
Internal Service Funds

255

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Packet Pg. 576 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

THIS PAGE IS INTENTIONALLY
BLANK
256

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Packet Pg. 577 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Internal Service Funds
Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments for the City on a cost-reimbursement basis. The six Internal Service Funds are: Fire Equipment Fund, Dental Plan SelfFunded Dental Plan, Workers Compensation Self-Insurance Fund, Liability SelfInsurance Fund, Motor Pool Operations Fund and Motor Pool Replacement Fund.

Self Insurance Funds (Fund 665, 666, 667)
Description The Self Insurance - Dental Plan Fund (665), the Self Insurance - Workers Compensation Fund (666) and the Self Insurance - General Liability Fund (667) are unrestricted funds. City of Pacifica established these funds to cover Employee Dental Insurance, Workers' Compensation, General
Liability, Property, and Automobile Liability
Insurance. Expenses are restricted to payments
of claims, the premium for umbrella insurance,
administration costs, and expenditures relating
to the Safety Committee.

The City is a member of the Pooled Liability
Assurance Network (PLAN) Joint Powers
Authority for Liability and Property coverages.

The allocation methodology for this fund passes on all expenses to the funds and departments that incur the liabilities. The fund will maintain a reserve balance to mitigate potential future claims.

Goals and Objectives
Proactively reduce risk exposure and reduce liability, workplace injuries and insurance costs.

Maintain appropriate levels of insurance coverage.

Train staff on risk management operational best practices, safety in workplace and maintenance operations.

Mitigate potential risk and build contingent loss reserves.

Motor Pool Operating and Motor Pool
Replacement (Funds 671 & 672)
Description The Motor Pool Operating Fund (671) and the Motor Pool Replacement Fund (672) are unrestricted funds.

These funds support the day to day operation and
maintenance of city vehicles and equipment. This fund
257

11.i
Packet Pg. 578 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) pays for fuel costs, scheduled maintenance, repairs, body work, and other mechanical and electrical work on city vehicles and equipment. Additionally, these funds pay for the purchase of replacement of vehicles and equipment. Money is collected from city departments assigned with vehicles and equipment to support this fund.

Goals and Objectives
Properly maintain City Vehicles
Provide timely replacement of City Vehicles
Fire Equipment Replacement Fund (Fund 674)
Description The Fire Equipment Fund is an unrestricted fund. It covers the cost of replacement of fire department small equipment needs. Revenue for this fund is derived from
internal service charges to City departments.

Goals and Objectives
Provide timely replacement of fire department small
equipment as necessary.
258

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Packet Pg. 579 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actual Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes - $ - $ - $ - $ - $ - $
Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental - $ - $ - $ - $ - $ - $
Other Revenue 6,478 $ - $ - $ - $ - $ - $
Charges for Services 240,972 $ 254,510 $ 125,796 $ 302,616 $ 302,616 $ 305,642 $ Total Revenue 247,450 $ 254,510 $ 125,796 $ 302,616 $ 302,616 $ 305,642 $ Expenditures Salaries & Benefits - $ - $ - $ - $ - $ - $ Contract Services 10,044 $ 18,610 $ 4,069 $ 8,800 $ 8,800 $ 8,932 $ Material/Supplies/Maintenance 201,232 $ 191,615 $ 63,167 $ 293,816 $ 293,816 $ 296,710 $ Total Expenditures 211,276 $ 210,225 $ 67,236 $ 302,616 $ 302,616 $ 305,642 $ Excess revenue over
(under) expenditures 36,174 $ 44,285 $ 58,560 $ - $ - $ - $ Other financing sources (uses)
Transfers In - $ - $ - $ - $ - $ - $
Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital - $ - $ - $ - $ - $ - $
Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) - $ - $ - $ - $ - $ - $
Excess revenue and other
sources over (under) expenditures
and other uses 36,174 $ 44,285 $ 58,560 $ - $ - $ - $
Beginning Net Assets, July 1 $ 235,301 199,127 $ 279,586 $ 338,146 $ 338,146 $ 338,146 $ Ending Net Assets, June 30 (Projected) $ 279,586 235,301 $ 338,146 $ 338,146 $ 338,146 $ 338,146 $ *Enterprise Funds and Internal Service Funds include capital investments and depreciation, the above does not represent cash balance City of Pacifica
Self Insurance - Dental Plan (665)
Statement of Revenue, Expenditures and Changes in Net Assets 259

11.i
Packet Pg. 580 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actual Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes - $ - $ - $ - $ - $ - $
Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental - $ - $ - $ - $ - $ - $
Other Revenue 1,135,617 $ 1,157,391 $ 647,779 $ 1,457,211 $ 1,457,211 $ 1,881,962 $ Charges for Services - $ - $ - $ - $ - $ - $
Total Revenue 1,135,617 $ 1,157,391 $ 647,779 $ 1,457,211 $ 1,457,211 $ 1,881,962 $ Expenditures Salaries & Benefits 649 $ 16,258 $ 10,246 $ - $ - $ 65,516 $ Contract Services - $ - $ - $ - $ - $ - $
Material/Supplies/Maintenance 845,239 $ 975,254 $ 1,047,060 $ 1,457,211 $ 1,457,211 $ 1,884,627 $ Total Expenditures 845,888 $ 991,512 $ 1,057,306 $ 1,457,211 $ 1,457,211 $ 1,950,143 $ Excess revenue over
(under) expenditures 289,728 $ 165,879 $ (409,527) $ - $ - $ (68,181) $ Other financing sources (uses)
Transfers In - $ - $ - $ - $ - $ - $
Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital - $ - $ - $ - $ - $ - $
Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) - $ - $ - $ - $ - $ - $
Excess revenue and other
sources over (under) expenditures
and other uses 289,728 $ 165,879 $ (409,527) $ - $ - $ (68,181) $ Beginning Net Assets, July 1 $ 856,648 566,919 $ 1,022,527 $ 613,000 $ 613,000 $ 613,000 $ Ending Net Assets, June 30 (Projected) $ 1,022,527 856,648 $ 613,000 $ 613,000 $ 613,000 $ 544,819 $ *Enterprise Funds and Internal Service Funds include capital investments and depreciation, the above does not represent cash balance City of Pacifica
Self Insurance - Worker's Compensation Fund (666)
Statement of Revenue, Expenditures and Changes in Net Assets 260

11.i
Packet Pg. 581 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actual Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes - $ - $ - $ - $ - $ - $
Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental - $ - $ - $ - $ - $ - $
Other Revenue 32,090 $ 14,202 $ 161,318 $ - $ - $ - $
Charges for Services - $ - $ - $ - $ - $ - $
Total Revenue 32,090 $ 14,202 $ 161,318 $ - $ - $ - $
Expenditures Salaries & Benefits 2,947 $ 72,914 $ 91,745 $ 110,482 $ 104,840 $ 153,087 $ Contract Services - $ - $ - $ 208,100 $ 228,100 $ 258,100 $ Material/Supplies/Maintenance 60,671 $ 1,978,956 $ 2,543,084 $ 3,024,460 $ 3,024,460 $ 2,473,774 $ Total Expenditures 63,618 $ 2,051,871 $ 2,634,829 $ 3,343,042 $ 3,357,400 $ 2,884,961 $ Excess revenue over
(under) expenditures (31,528) $ (2,037,669) $ (2,473,511) $ (3,343,042) $ (3,357,400) $ (2,884,961) $ Other financing sources (uses)
Transfers In - $ 2,030,300 $ 2,808,400 $ 3,317,713 $ 3,317,713 $ 2,834,961 $ Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital - $ - $ - $ - $ - $ - $
Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) - $ 2,030,300 $ 2,808,400 $ 3,317,713 $ 3,317,713 $ 2,834,961 $ Excess revenue and other
sources over (under) expenditures
and other uses (31,528) $ (7,369) $ 334,889 $ (25,329) $ (39,687) $ (50,000) $ Beginning Net Assets, July 1 $ 683,759 715,287 $ 676,390 $ 1,011,279 $ 1,011,279 $ 971,592 $ Ending Net Assets, June 30 (Projected) $ 676,390 683,759 $ 1,011,279 $ 985,950 $ 971,592 $ 921,592 $ *Enterprise Funds and Internal Service Funds include capital investments and depreciation, the above does not represent cash balance City of Pacifica
Self Insurance - General Liability Fund (667)
Statement of Revenue, Expenditures and Changes in Net Assets 261

11.i
Packet Pg. 582 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actual Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes - $ - $ - $ - $ - $ - $
Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental - $ - $ - $ - $ - $ - $
Other Revenue 12,275 $ - $ - $ - $ - $ - $
Charges for Services 1,216,900 $ 1,203,000 $ 1,242,400 $ 1,244,030 $ 1,244,030 $ 1,237,528 $ Total Revenue 1,229,175 $ 1,203,000 $ 1,242,400 $ 1,244,030 $ 1,244,030 $ 1,237,528 $ Expenditures Salaries & Benefits 594,092 $ 582,158 $ 543,704 $ 689,778 $ 598,360 $ 673,867 $ Contract Services 5,699 $ 36,738 $ 3,090 $ 48,100 $ 70,597 $ 48,822 $ Material/Supplies/Maintenance 600,254 $ 568,439 $ 681,987 $ 509,112 $ 535,112 $ 544,839 $ Debt Service 4,608 $ 4,189 $ 3,756 $ 23,823 $ 23,823 $ 24,796 $ Total Expenditures 1,204,652 $ 1,191,524 $ 1,232,537 $ 1,270,813 $ 1,227,891 $ 1,292,324 $ Excess revenue over
(under) expenditures 24,522 $ 11,476 $ 9,863 $ (26,783) $ 16,139 $ (54,796) $ Other financing sources (uses)
Transfers In - $ - $ - $ - $ 26,000 $ 24,796 $
Deb Transfers/Allocations Out (34,050) $ - $ - $ - $ - $ - $ Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital - $ - $ - $ - $ - $ - $
Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) (34,050) $ - $ - $ - $ 26,000 $ 24,796 $ Excess revenue and other
sources over (under) expenditures
and other uses (9,528) $ 11,476 $ 9,863 $ (26,783) $ 42,139 $ (30,000) $ Beginning Net Assets, July 1 $ 217,299 226,827 $ 228,776 $ 238,638 $ 238,638 $ 280,777 $ Ending Net Assets, June 30 (Projected) $ 228,776 217,299 $ 238,638 $ 211,855 $ 280,777 $ 250,777 $ *Enterprise Funds and Internal Service Funds include capital investments and depreciation, the above does not represent cash balance City of Pacifica
Motor Pool Operating Fund (671)
Statement of Revenue, Expenditures and Changes in Net Assets 262

11.i
Packet Pg. 583 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actual Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes - $ - $ - $ - $ - $ - $
Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental - $ - $ - $ - $ - $ - $
Other Revenue 24,744 $ 212,187 $ 80,329 $ 25,000 $ 25,000 $ 25,000 $ Charges for Services - $ - $ - $ - $ - $ - $
Total Revenue 24,744 $ 212,187 $ 80,329 $ 25,000 $ 25,000 $ 25,000 $ Expenditures Salaries & Benefits - $ - $ - $ - $ - $ - $ Contract Services - $ - $ - $ - $ - $ - $
Material/Supplies/Maintenance 584,380 $ 793,640 $ 1,113,250 $ - $ 1,450,397 $ 271,500 $ Total Expenditures 584,380 $ 793,640 $ 1,113,250 $ - $ 1,450,397 $ 271,500 $ Excess revenue over
(under) expenditures (559,636) $ (581,453) $ (1,032,921) $ 25,000 $ (1,425,397) $ (246,500) $ Other financing sources (uses)
Transfers In 600,000 $ 100,000 $ 1,321,000 $ 200,000 $ 1,235,594 $ 200,000 $ Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital - $ - $ - $ - $ - $ - $
Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) 600,000 $ 100,000 $ 1,321,000 $ 200,000 $ 1,235,594 $ 200,000 $ Excess revenue and other
sources over (under) expenditures
and other uses 40,364 $ (481,453) $ 288,079 $ 225,000 $ (189,803) $ (46,500) $ Beginning Net Assets, July 1 $ 2,206,269 2,220,268 $ 1,724,816 $ 2,012,895 $ 2,012,895 $ 1,823,092 $ Restatement (54,363) $
Ending Net Assets, June 30 (Projected) $ 1,724,816 2,206,269 $ 2,012,895 $ 2,237,895 $ 1,823,092 $ 1,776,592 $ *Enterprise Funds and Internal Service Funds include capital investments and depreciation, the above does not represent cash balance City of Pacifica
Motor Pool Replacement Fund (672)
Statement of Revenue, Expenditures and Changes in Net Assets 263

11.i
Packet Pg. 584 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actuals Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes - $ - $ - $ - $ - $ - $
Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental - $ - $ - $ - $ - $ - $
Other Revenue 4,143 $ - $ - $ - $ - $ - $
Charges for Services - $ - $ - $ - $ - $ - $
Total Revenue 4,143 $ - $ - $ - $ - $ - $
Expenditures Salaries & Benefits - $ - $ - $ - $ - $ - $ Contract Services - $ - $ - $ - $ - $ - $
Material/Supplies/Maintenance - $ - $ - $ - $ - $ - $
Debt Service - $ 358,824 $ - $ - $ - $ - $
Total Expenditures - $ 358,824 $ - $ - $ - $ - $
Excess revenue over
(under) expenditures 4,143 $ (358,824) $ - $ - $ - $ - $ Other financing sources (uses)
Transfers In 133,300 $ 282,300 $ 133,000 $ 125,000 $ 125,000 $ 60,000 $ Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital - $ - $ - $ - $ - $ - $
Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) 133,300 $ 282,300 $ 133,000 $ 125,000 $ 125,000 $ 60,000 $ Excess revenue and other
sources over (under) expenditures
and other uses 137,443 $ (76,524) $ 133,000 $ 125,000 $ 125,000 $ 60,000 $ Beginning Net Assets, July 1 $ 151,375 13,932 $ 74,851 $ 207,851 $ 207,851 $ 332,851 $ Ending Net Assets, June 30 (Projected) $ 74,851 151,375 $ 207,851 $ 332,851 $ 332,851 $ 392,851 $ *Enterprise Funds and Internal Service Funds include capital investments and depreciation, the above does not represent cash balance City of Pacifica
Fire Equipment Replacement Fund (674)
Statement of Revenue, Expenditures and Changes in Net Assets 264

11.i
Packet Pg. 585 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
Debt Service Funds

265

11.i
Packet Pg. 586 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

THIS PAGE IS INTENTIONALLY
BLANK
266

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Packet Pg. 587 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Debt Service Fund
Debt Service Fund (Fund 440)
The Debt Service Fund is a restricted fund. This fund is used to account for the payment of principal and interest on general long-term debt of the City. This fund does not include any of the enterprise or internal service long-term debt, which are accounted for in the enterprise funds directly. This Debt Service Fund is also used to maintain cash reserves as required under debt covenants. A full description of the debt is located in the supplemental information section of this budget book. 267

11.i
Packet Pg. 588 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Adopted Amended Proposed
Actual Actual Actuals Budget Budget Budget
22-23 23-24 24-25 25-26 25-26 26-27
Revenue
Taxes - $ - $ - $ - $ - $ - $
Property Tax - $ - $ - $ - $ - $ - $
Vehicle License Fees - $ - $ - $ - $ - $ - $
Business License Tax - $ - $ - $ - $ - $ - $
Cannabis Tax - $ - $ - $ - $ - $ - $
Sales Tax - $ - $ - $ - $ - $ - $
Measure Y - $ - $ - $ - $ - $ - $
Transient Occupancy Tax - $ - $ - $ - $ - $ - $
Utility Users Tax - $ - $ - $ - $ - $ - $
Other Taxes - $ - $ - $ - $ - $ - $
Intergovernmental - $ - $ - $ - $ - $ - $
Other Revenue 1,002 $ 819 $ 1,141 $ 500 $ 500 $ 505 $
Charges for Services 1,132,521 $ - $ - $ - $ - $ - $
Total Revenue 1,133,522 $ 819 $ 1,141 $ 500 $ 500 $ 505 $ Expenditures Salaries & Benefits - $ - $ - $ - $ - $ - $ Contract Services - $ - $ - $ - $ - $ - $
Material/Supplies/Maintenance - $ - $ - $ - $ - $ - $
Debt Service 2,458,491 $ 2,478,030 $ 2,462,490 $ 2,573,945 $ 2,573,945 $ 2,972,787 $ Total Expenditures 2,458,491 $ 2,478,030 $ 2,462,490 $ 2,573,945 $ 2,573,945 $ 2,972,787 $ Excess revenue over
(under) expenditures (1,324,969) $ (2,477,211) $ (2,461,349) $ (2,573,445) $ (2,573,445) $ (2,972,282) $ Other financing sources (uses)
Transfers In 2,642,481 $ 2,436,121 $ 482,726 $ 1,968,046 $ 1,968,046 $ 2,972,282 $ Deb Transfers/Allocations Out - $ - $ - $ - $ - $ - $
Transfers Out - Debt Service - $ - $ - $ - $ - $ - $
Transfers Out - Capital (3,935,732) $ - $ - $ - $ - $ - $ Proceeds of Long-Term Debt - $ - $ - $ - $ - $ - $
Total Financing Sources (uses) (1,293,251) $ 2,436,121 $ 482,726 $ 1,968,046 $ 1,968,046 $ 2,972,282 $ Excess revenue and other
sources over (under) expenditures
and other uses (2,618,220) $ (41,090) $ (1,978,623) $ (605,399) $ (605,399) $ - $ Beginning Net Assets, July 1 $ 2,699,164 5,317,384 $ 2,658,074 $ 679,451 $ 679,451 $ 74,052 $ Ending Net Assets, June 30 (Projected) $ 2,658,074 2,699,164 $ 679,451 $ 74,052 $ 74,052 $ 74,052 $ City of Pacifica
Debt Service Fund (440)
Statement of Revenue, Expenditures and Changes in Net Assets 268

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Packet Pg. 589 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
Personnel Summaries

269

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Packet Pg. 590 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

THIS PAGE IS INTENTIONALLY
BLANK
270

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Packet Pg. 591 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Employee Compensation and Benefits Summary
The Administrative Services Department is responsible for initiating recruitments and providing employment services to all City departments and employees, and for implementing Federal, State and court mandates and requirements related to employment.

These services include recruitment and selection of qualified employees, administration of the City’s benefit programs, administration of workers’ compensation programs, maintenance of the City’s classification and salary structure, coordination of Citywide training and development for employees, administration for various Memoranda of Understanding (MOU) between the City and employee unions, and problem solving and employee assistance activities.

The Administrative Services Department is also responsible for the labor negotiation process and employee relations. The Department arranges legally required training for employees, such as Anti-Harassment/Discrimination, Reasonable Suspicion Training, and Conflict Resolution, as well as many other training seminars throughout the year. The Department also maintains all personnel files and records, including the employee performance evaluation records. Over the past three and a half years, the Human Resources Department has built a strong foundation and provided critical organizational stability. The HR team continues to support recruitment, retention, employee relations, and staff development while implementing initiatives focused on employee engagement, workforce wellness, and organizational effectiveness. City services remain essential to achieving the Council’s Strategic Plan, particularly Goal #1: Enhance Organizational and Fiscal Stability. Following the completion of the Citywide employee engagement survey and the establishment of the Employee Engagement Committee, Human Resources will continue partnering with staff to identify and implement meaningful workplace improvements while advancing workforce planning and retention strategies that support long-term organizational success.The City has reached an agreement with all bargaining units on three-year contracts through June 30th, 2028.

Unrepresented Employee Group 07/01/25 – 06/30/28
Fire Battalion Chiefs, IAFF Local 2400 11/01/2025 – 06/30/28 Fire Fighters, IAFF Local 2400 07/01/25 – 06/30/28
Management Unit, Teamsters local 350 11/01/2025 – 06/30/28 Miscellaneous Employees, Teamsters Local 856 07/01/25 – 06/30/28 Pacifica Police Officers Association 07/01/25 – 06/30/28 Police Management (PPMA) & Supervisors (PPSA) 07/01/25 – 06/30/28 Wastewater Treatment Plant, Teamsters Local 856 07/01/25 – 06/30/28 The Compensation Plan for authorized positions in the unit consists of job title classifications/job codes, and monthly salary ranges. The City participates in the 271

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Packet Pg. 592 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) CalPERS program and offers a variety of retirement and health benefit programs and services to employees. Listed below are examples of these benefits:

MEDICAL / VISION / DENTAL – Employees can choose between three HMO; and three PPO PERS Platinum, Gold, and PORAC PPO Health Plans offered by the City at three levels: for employee only; for employee plus dependent; and for family coverage. The City pays monthly contributions toward the premium for employee and dependent medical coverage for employees working 20 hours or more per week. The City also pays for employee dental and vision insurance plans.

ADMINISTRATIVE LEAVE – Management and exempt employees receive administrative leave per fiscal year as ranging from 60 to 96 hours per year.

EMPLOYEE ASSISTANCE PROGRAM – The City provides an employee assistance program with CONCERN for employees and their dependents.

VACATION LEAVE – Employees accrue between 11 and 27 days of vacation per year depending upon their length of service. Vacation accrual is capped at a maximum of two times the annual accrual rate.

SICK LEAVE – Employees accrue 12 days per year of sick leave with no cap.

HOLIDAYS – There are 13 paid holidays per year, two of which are floating holidays.

LIFE INSURANCE/ACCIDENTAL DEATH & DISMEMBERMENT – The City pays basic life insurance and accidental death, and dismemberment insurance ranging from $30,000 to $200,000 depending on the labor group.

Short Term Disability – The City offers voluntary short-term disability insurance that offers 60% of weekly earnings, up to $2,300 per week. This benefit has a waiting period of 14 days and can provide benefit payments for up to 9 weeks.

LONG TERM DISABILITY/WORKERS’ COMPENSATION INSURANCE – The City provides workers’ compensation, and long-term disability insurance for employees 60 days after the incident date.

RETIREMENT – The City is part of the Public Employee’s Retirement System (PERS) and has two tiers of retirement benefits. The employee contributions for each employee group are as follows:

Misc. Classic Members 2.5% @ 55 – 8%
Misc. PEPRA Members 2% @ 62 – 7.25%
Safety – Fire / Police Classic Members 3% @ 50 – 9%
Safety – Fire / Police PEPRA Members 2% @ 50 – 2.7% @ 57 - 135 CalPERS Classic Members are those who were hired before 2013. CalPERS PEPRA Members are those who were hired after 2013.

EDUCATION INCENTIVE – Employees qualify for tuition reimbursement of eligible costs for job-related educational classes with amounts differing by labor group.

DEFERRED COMPENSATION – Voluntary participation in MissionSquare, Nationwide, or CalPERS 457 deferred compensation plans is available, with both pre-tax and Roth (post-tax) contribution options.
272

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Packet Pg. 593 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) City of Pacifica
Master Position Control
Full-Time Equivalent Dept Bargaining Group
FY2023-24 Actual FY2024-25 Actual FY2025-26 Actual Additions/ Deletions FY2026-27 Adopted Frozen PositionsXI City Manager CMO Contract Agreement 1.00 1.00 1.00 1.00 Assistant City Manager CMO Unrepresented - Management 0.00 1.00 1.00 1.00 Assistant City Manager/ Administrative Services Director CMO Unrepresented - Management 1.00 0.00 0.00 0.00 City Clerk CMO Unrepresented - Management 1.00 1.00 1.00 1.00 Deputy City Clerk CMO Unrepresented - Confidential 1.00 1.00 1.00 1.00 Economic and Housing Development Manager CMO Unrepresented - Confidential 0.00 0.00 1.00 1.00 Economic Development Manager CMO Unrepresented - Confidential 1.00 1.00 0.00 0.00 Economic and Housing Development SpecialistV CMO Unrepresented - Confidential 0.00 0.00 1.00 1.00 Executive Assistant to City Manager CMO Unrepresented - Confidential 1.00 1.00 1.00 1.00 Management Analyst (I-II)I CMO MGMT Teamsters Local 350 0.50 1.50 1.50 -0.50 1.00

6.50 7.50 8.50 -0.50 8.00 0.00 Finance and Administrative Services Director Finance Unrepresented - Management 0.00 1.00 1.00 1.00 Accounting Technician (I-III) Finance MISC Teamsters Local 856 2.00 2.00 2.00 2.00 Accountant Finance MISC Teamsters Local 856 1.00 1.00 1.00 1.00 Deputy Director Finance Finance Unrepresented - Management 1.00 1.00 1.00 1.00 Financial Analyst (I-II) Finance Unrepresented - Confidential 1.00 1.00 1.00 1.00 Sr. Accountant Finance Unrepresented - Management 1.00 1.00 1.00 1.00 Management Analyst (I-II)I Ec. Dev MGMT Teamsters Local 350 1.00 0.00 0.00 0.00 Info System and Technology Analyst IT MISC Teamsters Local 856 2.00 3.00 3.00 3.00 IT Support Assistant IT PT - Non-Bargaining Group 1.00 0.00 0.00 0.00 IT Manager IT MGMT Teamsters Local 350 1.00 1.00 1.00 1.00 HR Analyst HR Unrepresented - Confidential 2.00 2.00 2.00 2.00 Human Resources Manager HR Unrepresented - Management 1.00 1.00 1.00 1.00 Sr. Human Resources Analyst HR Unrepresented - Confidential 0.00 1.00 1.00 1.00

14.00 15.00 15.00 0.00 15.00 0.00 Police Chief Police Unrepresented - Management 1.00 1.00 1.00 1.00 Administrative Assistant (I-III) Police MISC Teamsters Local 856 0.00 0.00 1.00 1.00 Administrative Assistant Police MISC Teamsters Local 857 1.00 1.00 0.00 0.00 Community Service Officer Police MISC Teamsters Local 856 1.00 1.00 1.00 1.00 Community Service Officer - GrantII Police PT - Non-Bargaining Group 0.50 0.50 0.50 0.50 1.00 PD Property & Evidence Tech (I-II)VII Police MISC Teamsters Local 856 1.00 1.00 1.00 1.00 2.00 Police Captain Police Pacifica Police Managers Assoc. (PPMA) 2.00 2.00 2.00 2.00 Police Corporal Police Pacifica Police Officer's Assoc. 6.00 7.00 7.00 7.00 Police OfficerIII Police Pacifica Police Officer's Assoc. 19.00 19.00 19.00 19.00 1.00 Police Records Specialist Police MISC Teamsters Local 856 0.00 0.00 2.00 2.00 Police Records Clerk Police MISC Teamsters Local 856 2.00 2.00 0.00 0.00 Police Records Supervisor Police MISC Teamsters Local 856 1.00 1.00 1.00 1.00 Police Sergeant Police Pacifica Police Supervisors Assoc. (PPSA) 7.00 7.00 7.00 7.00 Property Clerk - PTVI Police MISC Teamsters Local 856 0.50 0.50 0.50 -0.50 0.00

42.00 43.00 43.00 1.00 44.00 1.00 Deputy Fire Chief Fire MGMT Teamsters Local 350 1.00 1.00 1.00 1.00 Administrative Assistant (I-III) Fire MISC Teamsters Local 856 0.00 0.00 1.00 1.00 Administrative Assistant Fire MISC Teamsters Local 856 1.00 1.00 0.00 0.00 Fire Battalion Chief Fire Fire Battalion Chiefs Teamsters Local 856 2.00 2.00 2.00 2.00 Fire Captain Fire Fire Fighter IAFF Local 2400 6.00 6.00 6.00 6.00 EMS Chief Fire MGMT Teamsters Local 350 0.00 0.00 1.00 1.00 Fire Paramedic Coordinator Fire MGMT Teamsters Local 350 1.00 1.00 0.00 0.00 Firefighter EngineerIII Fire Fire Fighter IAFF Local 2400 15.00 15.00 15.00 15.00 1.00

26.00 26.00 26.00 0.00 26.00 1.00 Community Development Director CD Unrepresented - Management 0.00 1.00 1.00 1.00 Administrative Assistant (I-III)II CD MISC Teamsters Local 856 0.00 0.00 0.00 1.00 1.00 Director of Planning/City Planner CD Unrepresented - Management 1.00 0.00 0.00 0.00 Assistant Planner / Associate Planner CD Teamsters Local 350 2.00 2.00 2.00 2.00 Code Enforcement Officer CD MISC Teamsters Local 856 1.00 1.00 1.00 1.00 Deputy Community Development Director CD Unrepresented - Management 0.00 1.00 1.00 1.00 Management Analyst (I-II)I CD/CMO MGMT Teamsters Local 350 0.50 0.50 0.50 -0.50 0.00 Permit Technician CD MISC Teamsters Local 856 2.00 2.00 2.00 2.00 Senior Code Enforcement Officer CD MGMT Teamsters Local 350 1.00 1.00 1.00 1.00 Senior Planner CD MGMT Teamsters Local 350 2.00 2.00 2.00 2.00 Senior Planner - Grant FundedIX CD MGMT Teamsters Local 350 0.00 0.00 0.00 1.00 1.00 StenographerI CD PT - Non-Bargaining Group 0.25 0.25 0.25 -0.25 0.00

9.75 10.75 10.75 1.25 12.00 0.00
City Manager's Office
Total Finance & Administrative Services
Total Police Department
Total North County Fire Authority/ Pacifica Fire Department Total Community Development Department
Total 273

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Packet Pg. 594 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) City of Pacifica
Master Position Control
Director of Public Works PW Unrepresented - Management 1.00 1.00 1.00 1.00 Administrative Assistant (I-III) PW MISC Teamsters Local 856 0.00 0.00 2.00 2.00 Administrative Clerk II PW MISC Teamsters Local 856 2.00 2.00 0.00 0.00 Assistant / Associate Engineer PW MISC Teamsters Local 856/MGMT Teamsters Local 350 3.00 4.00 3.00 3.00 Building Maintenance Specialist PW MISC Teamsters Local 856 2.00 2.00 2.00 2.00 Deputy Director PW/Field Services - City Engineer PW Unrepresented - Management 1.00 1.00 1.00 1.00 Equipment Operator PW MISC Teamsters Local 856 1.00 1.00 1.00 1.00 Field Services Manager PW MGMT Teamsters Local 350 1.00 1.00 1.00 1.00 Maintenance AssistantIV PW PT - Non-Bargaining Group 1.50 2.00 1.50 1.50 1.00 Maintenance Worker (I-II)VIII PW MISC Teamsters Local 856 9.00 9.00 9.00 9.00 Mechanic PW MISC Teamsters Local 856 1.00 1.00 1.00 1.00 Project Coordinator PW MISC Teamsters Local 856 1.00 1.00 0.00 0.00 Project ManagerX PW MGMT Teamsters Local 350 1.00 2.00 2.00 2.00 Public Works Supervisor (Motor Pool) PW MISC Teamsters Local 856 1.00 1.00 1.00 1.00 PW Superintendent PW MGMT Teamsters Local 350 2.00 2.00 2.00 2.00 Ranger PW MISC Teamsters Local 856 2.00 2.00 2.00 2.00 Lead Ranger PW MISC Teamsters Local 856 1.00 1.00 1.00 1.00 Senior Building Maintenance Specialist PW MISC Teamsters Local 856 0.00 1.00 1.00 1.00 Senior Civil EngineerX PW MGMT Teamsters Local 350 1.00 1.00 1.00 1.00 Senior Equipment Mechanic PW MISC Teamsters Local 856 1.00 1.00 1.00 1.00

32.50 36.00 33.50 0.00 33.50 1.00 Administrative Assistant (I-III) WWTP MISC Teamsters Local 856 0.00 0.00 1.00 1.00 Assistant / Associate Engineer WWTP MISC Teamsters Local 856/MGMT Teamsters Local 350 3.00 4.00 1.00 1.00 Deputy Director of PW/WWTP WWTP Unrepresented - Management 1.00 1.00 1.00 1.00 Electrical Instrumentation Tech (I-III) WWTP WWTP Teamsters Local 856 2.00 2.00 2.00 2.00 Engineering Manager WWTP MGMT Teamsters Local 350 1.00 1.00 1.00 1.00 Laboratory Analyst WWTP WWTP Teamsters Local 856 1.00 1.00 1.00 1.00 Laboratory Assistant WWTP WWTP PT - Non-Bargaining Group 0.50 0.50 0.50 0.50 Laboratory Supervisor WWTP WWTP Teamsters Local 856 1.00 1.00 1.00 1.00 Laboratory Technician WWTP WWTP Teamsters Local 856 1.00 1.00 1.00 1.00 Maintenance Assistant WWTP PT - Non-Bargaining Group 1.50 2.00 0.50 0.50 Operator I-III WWTP WWTP Teamsters Local 856 17.00 17.00 17.00 17.00 WWTP Operator in Training WWTP PT - Non-Bargaining Group 0.50 0.50 0.50 0.50 Assistant Collections System Manager WWTP MGMT Teamsters Local 350 0.00 0.00 1.00 1.00 WWTP Asst. Superint. - Maint. WWTP MGMT Teamsters Local 350 1.00 1.00 0.00 0.00 Assistant Plant Manager WWTP MGMT Teamsters Local 350 0.00 0.00 1.00 1.00 WWTP Asst. Superint. - Operations WWTP MGMT Teamsters Local 350 1.00 1.00 0.00 0.00 WWTP Collections Sys. Manager WWTP MGMT Teamsters Local 350 1.00 1.00 1.00 1.00 WWTP Plant Manager WWTP MGMT Teamsters Local 350 1.00 1.00 1.00 1.00

33.50 35.00 31.50 0.00 31.50 0.00 Director of Parks, Beaches, and Recreation PB&R Unrepresented - Management 1.00 1.00 1.00 1.00 Deputy Director of Parks, Beaches and Recreation PB&R Unrepresented - Managaement 0.00 0.00 1.00 1.00 Child Care Assistant Supervisor PB&R MISC Teamsters Local 856 1.00 1.00 1.00 1.00 Child Care Site Coordinator PB&R MISC Teamsters Local 856 5.00 5.00 5.00 5.00 Child Care Teacher PB&R MISC Teamsters Local 856 2.00 2.00 2.00 2.00 Child Care Lead TeacherX; IV PB&R MISC Teamsters Local 856 10.00 10.00 10.00 10.00 1.00 Community Services Coordinator PB&R MISC Teamsters Local 856 1.00 1.00 1.00 1.00 Food Service Coordinator PB&R MISC Teamsters Local 856 1.00 1.00 1.00 1.00 Kitchen Assistant PB&R PT - Non-Bargaining Group 1.50 1.50 1.50 1.50 Recreation Coordinator PB&R MISC Teamsters Local 856 2.00 2.00 3.00 3.00 Recreation Manager PB&R MGMT Teamsters Local 350 1.00 1.00 0.00 0.00 Administrative Assistant (I-III) PB&R MISC Teamsters Local 856 0.00 0.00 2.00 2.00 Recreation Specialist - Admin Services PB&R MISC Teamsters Local 856 2.00 2.00 0.00 0.00 Recreation Supervisor PB&R MGMT Teamsters Local 350 4.00 4.00 4.00 4.00 Senior Services Program Coordinator PB&R MISC Teamsters Local 856 1.00 1.00 0.00 0.00 Transportation SpecialistI PB&R MISC Teamsters Local 856 1.00 1.00 1.00 -1.00 0.00

33.50 33.50 33.50 -1.00 32.50 1.00
197.75 206.75 201.75 0.75 202.50 4.00
Total Parks, Beaches, and Recreation
Total Total Regular Fulltime Employees
Total Waste Water Treatment Plant Department
Public Works Department
I. Position unfunded in FY2026-27 by Council at budget adoption hearing on June 22, 2026.

II. Position added in FY2026-27 by Council at budget adoption hearing on June 22, 2026.

III. Position Frozen for 6 months in FY2026-27; action approved by Council at budget adoption hearing on June 22, 2026.

IV. Position Frozen for 1 year in FY2026-27; action approved by Council at budget adoption hearing on June 22, 2026.

V. Limited-Term Position designation has been removed by Council action at the FY2025-26 Mid-Year Budget review Council meeting on March 9, 2026.

XI.While budgeted, frozen positions will remain vacant during FY 2026-27 as a budget savings measure; see the position-specific footnote.

VI. Position unfunded by Council approval at the FY2025-26 Mid-Year Budget review Council meeting on March 9, 2026.

VII. Position added by Council approval at the FY2025-26 Mid-Year Budget review Council meeting on March 9, 2026.

VIII. Limited-Term Position designation has been removed by Council action in FY2026-27 by Council at budget adoption hearing on June 22, 2026.

IX. 2-year Limited-Term Senior Planner added in FY2026-27 by Council at budget adoption hearing on June 22, 2026; recruitment will be contingent on receipt of grant funding.

X. This position is authorized at a higher classification but is budgeted to be underfilled during FY 2026-27. 274

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Packet Pg. 595 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) 1 2 3 4 5 City Manager (ET/DH)* 27,500 --- --- --- --- 40.0 Assistant City Manager (ET/DH)* 19,347 --- --- --- 22,168 40.0 Finance / Administrative Services Director (ET/DH)* 16,716 --- --- --- 20,318 40.0 City Clerk (ET/DH)* 11,369 --- ` --- 13,076 40.0 Deputy City Clerk 7,373 --- --- --- 9,142 40.0 Deputy Director of Community Development 13,864 --- --- --- 16,264 40.0 Deputy Director of Finance 13,227 --- --- --- 15,839 40.0 Deputy Director of Parks, Beaches, and Recreation 14,035 --- --- --- 16,842 40.0 Deputy Director of Public Works - Field Services and Engineering- City Engineer 14,875 --- --- --- 17,449 40.0 Deputy Director of Public Works- Wastewater 14,161 --- --- --- 16,613 40.0 Director of Parks, Beaches & Recreation (ET/DH)* 17,245 --- --- --- 19,722 40.0 Director of Community Development (ET/DH)* 16,927 --- --- --- 19,360 40.0 Director of Public Works (ET/DH)* 18,697 --- --- --- 21,501 40.0 Human Resources Manager 12,319 --- --- --- 15,195 40.0 Senior Accountant 9,567 --- --- --- 11,931 40.0 Economic and Housing Development Manager 11,955 15,947 40.0 UNREPRESENTED SAFETY MANAGEMENT 1 2 3 4 5 Hours / Week Police Chief (ET/DH)* 20,667 --- --- --- 23,767 40.0 UNREPRESENTED EXEMPT CONFIDENTIAL 1 2 3 4 5 Hours / Week Executive Assistant to the City Manager 7,361 --- --- --- 9,125 40.0 Financial Analyst I 8,870 --- --- --- 9,934 40.0 Financial Analyst II 9,935 --- --- --- 11,180 40.0 Human Resources Analyst 8,304 --- --- --- 10,184 40.0 Senior Human Resources Analyst 10,139 --- --- --- 12,324 40.0 Economic and Housing Development Specialist 9,400 --- --- --- 11,385 40.0 TEAMSTERS MISCELLANEOUS LOCAL 856 1 2 3 4 5 Hours / Week Account Technician I 6,241 --- --- --- 7,586 40.0 Account Technician II 6,865 --- --- --- 8,347 40.0 Account Technician III 8,011 --- --- --- 8,628 40.0 Accountant 8,240 --- --- --- 10,005 40.0 Assistant Civil Engineer 7,913 --- --- --- 10,763 40.0 Assistant Planner 8,086 --- --- --- 9,776 40.0 Building Maintenance Specialist 6,725 --- --- --- 7,988 40.0 Child Care Assistant Supervisor 7,238 --- --- --- 8,598 40.0 Child Care Site Coordinator 6,732 --- --- --- 7,997 40.0 Child Care Teacher 3,731 --- --- --- 5,198 40.0 Child Care Teacher Lead 4,999 --- --- --- 6,051 40.0 Child Care Technician 4,978 --- --- --- 5,941 37.5 Code Enforcement Officer 7,073 --- --- --- 9,230 40.0
Community Service Officer 6,113 --- --- --- 7,273 40.0
Community Services Coordinator 6,341 --- --- --- 7,550 40.0 Engineering Technician 6,950 --- --- --- 8,853 40.0
Equipment Operator 6,587 --- --- --- 7,779 40.0 Food Services Coordinator 5,789 --- --- --- 7,379 40.0 Information System and Technology Analyst 9,685 --- --- --- 11,546 40.0 Lead Ranger 6,681 --- --- --- 7,966 40.0 Maintenance Worker I 6,243 --- --- --- 7,435 40.0 Maintenance Worker II 6,735 --- --- --- 7,996 40.0 Mechanic 7,174 --- --- --- 8,558 40.0 Permit Technician 6,057 --- --- --- 7,379 40.0 Police Records Specialist 5,478 --- --- --- 6,644 37.5
Police Records Supervisor 8,408 --- --- --- 10,194 37.5 Property and Evidence Specialist 2,573 --- --- --- 3,072 20.0 Evidence Technician I 7,387 --- --- --- 8,766 40.0 Evidence Technician II 7,753 --- --- --- 9,203 40.0 Public Works Supervisor (Streets, Parks or Motor Pool) 8,627 --- --- --- 10,965 40.0 Ranger 6,214 --- --- --- 7,411 40.0 Recreation Coordinator 6,341 --- --- --- 7,550 40.0 Senior Building Maintenance Specialist 7,027 --- --- --- 11,100 40.0 Senior Equipment Mechanic 8,121 --- --- --- 9,690 40.0
Senior Services Program Coordinator 6,309 --- --- --- 7,541 40.0 Senior Services/Recreation Assistant Supervisor 6,571 --- --- --- 7,805 40.0 Systems Specialist 9,047 --- --- --- 10,784 40.0
Transportation Specialist 5,795 --- --- --- 7,042 40.0 Administrative Assistant I 5,404 5,809 6,246 6,715 --- 40.0 Administrative Assistant II 6,238 6,706 7,210 7,751 --- 40.0 Administrative Assistant III 7,424 7,982 8,581 9,226 --- 40.0 TEAMSTERS MANAGEMENT LOCAL 350 - MISC1
1 2 3 4 5 Hours / Week Associate Civil Engineer 10,207 --- --- --- 11,970 40.0 Associate Planner 8,905 --- --- --- 10,500 40.0
Engineering Manager 13,210 --- --- --- 15,497 40.0
Field Services Manager 12,890 --- --- --- 14,823 40.0
CITY OF PACIFICA- SALARY SCHEDULE EFFECTIVE JULY 1, 2026 FY2026-27 Salary Schedule Monthly Salary Ranges
Steps UNREPRESENTED MANAGEMENT SALARY SCHEDULE Hours / Week 275

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Packet Pg. 596 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Information Systems and Technology Manager 12,410 --- --- --- 15,388 40.0 Management Analyst I/II 8,870 --- --- --- 11,180 40.0
Principal Civil Engineer 13,691 16,062 40.0
Project Manager 11,149 --- --- --- 13,080 40.0
Public Works Superintendent 10,697 --- --- --- 12,916 40.0 Recreation Manager 11,398 --- --- --- 14,060 40.0
Recreation Supervisor (Child Care, Senior Services, Recreation) 8,889 --- --- --- 10,224 40.0 Senior Civil Engineer 12,047 --- --- --- 14,133 40.0
Senior Code Enforcement Officer 8,826 --- --- --- 10,706 40.0 Senior Planner 10,304 --- --- --- 12,150 40.0
WWTP Assistant Collections System Manager 11,591 --- --- --- 13,597 40.0 WWTP Assistant Plant Manager 11,591 --- --- --- 13,597 40.0 WWTP Collections System Manager 12,960 --- --- --- 15,203 40.0 WWTP Plant Manager 12,960 --- --- --- 15,203 40.0
TEAMSTERS MANAGEMENT LOCAL 350 - PUBLIC SAFETY1
1 2 3 4 5 Hours / Week Deputy Fire Chief 20,266 --- --- --- 21,213 40.0 EMS Chief 13,569 --- --- --- 19,471 40.0
PACIFICA BATTALION CHIEFS IAFF, LOCAL 24001
1 2 3 4 5 Hours / Week Battalion Chief 14,900 --- --- --- 17,164 40.0 PACIFICA FIRE FIGHTERS ASSOCIATION (PFFA) 1 2 3 4 5 6 Firefighter Engineer 8,551 8,978 9,458 9,920 10,438 11,176 Firefighter Captain 12,241 12,843 13,442 --- --- ---
PACIFICA POLICE MANAGEMENT ASSOCIATION (PPMA) 1 2 3 4 5 Hours / Week Police Captain 16,806 --- --- --- 19,327 40.0 PACIFICA POLICE OFFICER'S ASSOCIATION (PPOA) 1 2 3 4 5 Hours / Week Police Officer Trainee 8,303 --- --- --- --- 40.0 Police Officer 8,718 $9,154.00 $9,612.00 $10,093.00 10,597 40.0 Police Corporal 9,511 $9,986.00 $10,485.00 $11,010.00 11,560 40.0 PACIFICA POLICE SUPERVISORS ASSOCIATION (PPSA) 1 2 3 4 5 Hours / Week Police Sergeant 11,676 12,259 12,872 13,516 14,192 40.0 TEAMSTERS WWTP LOCAL 856 - HIRED ON OR BEFORE JUNE 30, 2008 1 2 3 4 5 Hours / Week Laboratory Technician - No Certification (base) 6,628 --- --- --- 8,309 40.0 Laboratory Technician - Grade II Cert 4% above base (over-certification pay) 6,893 --- --- --- 8,641 40.0 Laboratory Technician - Grade III Cert 8% above base (over-certification pay) 7,158 --- --- --- 8,974 40.0 Laboratory Technician - Grade IV Cert 9% above base (over-certification pay) 7,225 --- --- --- 9,057 40.0 Laboratory Technician - Grade V Cert 11% above base (over-certification pay) 7,357 --- --- --- 9,223 40.0 Laboratory Supervisor - includes mandatory grade III certificate (base) 8,488 --- --- --- 10,792 40.0 Laboratory Supervisor - Grade IV Cert 9% above base (over-certification pay) 9,252 --- --- --- 11,763 40.0 Laboratory Supervisor - Grade V Cert 11% above base (over-certification pay) 9,421 --- --- --- 11,979 40.0 Electrical Instrumentation Tech I - No certification (base) 6,501 --- --- --- 8,150 40.0 Electrical Instrumentation Tech I - Grade II Cert 4% above base (over-certification pay) 6,761 --- --- --- 8,476 40.0 Electrical Instrumentation Tech I - Grade III Cert 8% above base (over-certification pay) 7,021 --- --- --- 8,802 40.0 Electrical Instrumentation Tech I - Grade IV Cert 9% above base (over-certification pay) 7,086 --- --- --- 8,884 40.0 Electrical Instrumentation Tech I - Grade V Cert 11% above base (over-certification pay) 7,216 --- --- --- 9,047 40.0 Electrical Instrumentation Tech II - Includes mandatory grade II certificate (base) 7,129 --- --- --- 9,066 40.0 Electrical Instrumentation Tech II - Grade III Cert 8% above base (over-certification pay) 7,699 --- --- --- 9,791 40.0 Electrical Instrumentation Tech II - Grade IV Cert 9% above base (over-certification pay) 7,771 --- --- --- 9,882 40.0 Electrical Instrumentation Tech II - Grade V Cert 11% above base (over-certification pay) 7,913 --- --- --- 10,063 40.0 Electrical Instrumentation Tech III - Includes mandatory grade III certificate (base) 8,014 --- --- --- 10,190 40.0 Electrical Instrumentation Tech III - Grade IV Cert 9% above base (over-certification pay) 8,735 --- --- --- 11,107 40.0 Electrical Instrumentation Tech III - Grade V Cert 11% above base (over-certification pay) 8,896 --- --- --- 11,311 40.0 Operator I - No certification 6,501 --- --- --- 8,150 40.0 Operator I - Grade II Cert - 4% above base (over-certification pay) 6,761 --- --- --- 8,476 40.0 Operator I - Grade III Cert - 8% above base (over-certification pay) 7,021 --- --- --- 8,802 40.0 Operator I - Grade IV Cert - 9% above base (over-certification pay) 7,086 --- --- --- 8,884 40.0 Operator I - Grade V Cert - 11% above base (over-certification pay) 7,216 --- --- --- 9,047 40.0 Operator II - Includes mandatory grade II certificate (base) 7,129 --- --- --- 9,066 40.0 Operator II - Grade III Cert - 8% above base (over-certification pay) 7,699 --- --- --- 9,791 40.0 Operator II - Grade IV Cert - 9% above base (over-certification pay) 7,771 --- --- --- 9,882 40.0 Operator II - Grade V Cert - 11% above base (over-certification pay) 7,913 --- --- --- 10,063 40.0 Operator III - Includes mandatory grade III certificate (base) 8,014 --- --- --- 10,190 40.0 Operator III - Grade IV Cert - 9% above base (over-certification pay) 8,735 --- --- --- 11,107 40.0 Operator III - Grade V Cert 11% above base (over-certification pay) 8,896 --- --- --- 11,311 40.0 276

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Packet Pg. 597 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) WWTP - HIRED ON OR AFTER JULY 1, 2008 1 2 3 4 5 Hours / Week Laboratory Technician - No Certification (base) 6,628 --- --- --- 8,309 40.0 Laboratory Technician - Grade II Cert 4% above base (over-certification pay) 6,893 --- --- --- 8,641 40.0 Laboratory Technician - Grade III Cert 9% above base (over-certification pay) 7,225 --- --- --- 9,057 40.0 Laboratory Technician - Grade IV Cert 12% above base (over-certification pay) 7,424 --- --- --- 9,306 40.0 Laboratory Technician - Grade V Cert 14% above base (over-certification pay) 7,556 --- --- --- 9,472 40.0 Lab Analyst-Includes mandatory grade II certificate (base) 7,408 --- --- --- 9,420 40.0 Lab Analyst - Grade III Cert 5% above base (over-certification pay) 7,779 --- --- --- 9,891 40.0 Lab Analyst- Grade IV Cert 8% above base (over-certification pay) 8,001 --- --- --- 10,174 40.0 Lab Analyst- Grade V Cert 10% above base (over-certification pay) 8,149 --- --- --- 10,362 40.0 Laboratory Supervisor - includes mandatory grade III certificate (base) 8,488 --- --- --- 10,792 40.0 Laboratory Supervisor - Grade IV Cert 5% above base (over-certification pay) 8,912 --- --- --- 11,332 40.0 Laboratory Supervisor - Grade V Cert 7% above base (over-certification pay) 9,082 --- --- --- 11,548 40.0 Electrical Instrumentation Tech I - No certification (base) 6,501 --- --- --- 8,150 40.0 Electrical Instrumentation Tech I - Grade II Cert 4% above base (over-certification pay) 6,761 --- --- --- 8,476 40.0 Electrical Instrumentation Tech I - Grade III Cert 9% above base (over-certification pay) 7,086 --- --- --- 8,884 40.0 Electrical Instrumentation Tech I - Grade IV Cert 12% above base (over-certification pay) 7,281 --- --- --- 9,128 40.0 Electrical Instrumentation Tech I - Grade V Cert 14% above base (over-certification pay) 7,411 --- --- --- 9,291 40.0 Electrical Instrumentation Tech II - Includes mandatory grade II certificate (base) 7,129 --- --- --- 8,887 40.0 Electrical Instrumentation Tech II - Grade III Cert 5% above base (over-certification pay) 7,485 --- --- --- 9,331 40.0 Electrical Instrumentation Tech II - Grade IV Cert 8% above base (over-certification pay) 7,699 --- --- --- 9,598 40.0 Electrical Instrumentation Tech II - Grade V Cert 10% above base (over-certification pay) 7,842 --- --- --- 9,775 40.0 Electrical Instrumentation Tech III - Includes mandatory grade III certificate (base) 8,014 --- --- --- 10,190 40.0 Electrical Instrumentation Tech III - Grade IV Cert 5% above base (over-certification pay) 8,415 --- --- --- 10,699 40.0 Electrical Instrumentation Tech III - Grade V Cert 7% above base (over-certification pay) 8,575 --- --- --- 10,903 40.0 Operator I - Must obtain Grade I certification in first year of employment (base) 6,501 --- --- --- 8,150 40.0 Operator I - Grade II Cert - 4% above base (over-certification pay) 6,761 --- --- --- 8,476 40.0 Operator I - Grade III Cert - 9% above base (over-certification pay) 7,086 --- --- --- 8,884 40.0 Operator I - Grade IV Cert - 12% above base (over-certification pay) 7,281 --- --- --- 9,128 40.0 Operator I - Grade V Cert - 14% above base (over-certification pay) 7,411 --- --- --- 9,291 40.0 Operator II - Includes mandatory grade II certificate (base) 7,129 --- --- --- 9,065 40.0 Operator II - Grade III Cert - 5% above base (over-certification pay) 7,485 --- --- --- 9,518 40.0 Operator II - Grade IV Cert - 8% above base (over-certification pay) 7,699 --- --- --- 9,790 40.0 Operator II - Grade V Cert - 10% above base (over-certification pay) 7,842 --- --- --- 9,971 40.0 Operator III - Includes mandatory grade III certificate (base) 8,014 --- --- --- 10,190 40.0 Operator III - Grade IV Cert - 5% above base (over-certification pay) 8,415 --- --- --- 10,699 40.0 Operator III - Grade V Cert 7% above base (over-certification pay) 8,575 --- --- --- 10,903 40.0 (ET/DH)* = (Executive Team/Department Head)
277

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Packet Pg. 599 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

CITY OF PACIFICA
Capital Improvement Program

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Packet Pg. 601 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption)

Capital Improvement Program
A Capital Improvement Program (CIP) is a financial planning and prioritization tool that identifies projects, assigns costs and recommends schedules for design and construction of capital improvements over a five (5) year horizon.

Capital improvements are projects which involve the purchase, improvement or construction of major fixed assets and equipment which are typically large in size, expensive, non-recurring and relatively permanent. The Capital Improvement Program (CIP) consists of projects to maintain and enhance the City’s infrastructure of roadways, sidewalks, utilities, structures, and facilities for the benefit of the community.

The City capital improvement needs are a result of an aging infrastructure, significant deferred maintenance and desired construction on new and existing facilities.

The CIP identifies capital improvements programs and projects that are needed to satisfy the City Council strategic goals and objectives to address the long-term obligations and investments in public infrastructure and future needs of the community.

The City’s CIP program is composed of two parts:
1) the five (5) year capital improvement plan (presented in a separate document); and 2) the single year funding authorizations, referred to as the Capital Budget.

Below is a list of new non- discretionary projects proposed for FY 2026-27 funding:

General Capital Projects (Fund 322 funded by General Fund):

1. Economic Development Infrastructure Improvements Project ($50k) – Consistent with the recently approved Economic Development Work Plan, this project supports smaller-scale repairs, replacements, upgrades and beautification improvements to utilities, streetscapes, pedestrian access, and other improvements to enhance visitor-serving areas, support local businesses and strengthen commercial vitality in key business districts citywide.

General Capital Projects (Other Funds):

2. Terra Nova Blvd and Oddstad Blvd Pedestrian Crossing Improvements (Fund 213 $50k) - install rectangular rapid flashing beacons (RRFB) and speed humps to increase visibility for pedestrians

3. FY 2026-27 Pavement Resurfacing Project ($1.6M > Fund 210 $950k, Fund 211 $100k, Fund 213 $620k) - rehabilitate the pavement along roads designated in the 5-year paving plan. This project will also include base repair as well as installation of thermoplastic traffic striping, markings and pavement markers

4. FY 2026-27 Sidewalk, Curbs, and ADA Ramps Improvement Project (Fund 211 $495k) - repair and replace damaged sidewalks, curbs, and gutters at 281

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priority locations throughout the city in compliance with ADA, federal and state standards

5. Oceana Bike Lanes ($92k > Fund 211 $9k, SCMTA Grant $83k) - new dedicated Class II bicycle lanes along Oceana Boulevard to improve safety, accessibility, and multimodal connectivity. The SCMTA Grant funds the feasibility study for the bike lanes.

Wastewater Projects (funded by Enterprise Sewer Utility Fund 518):

6. Pump Station Flowmeter Project ($550k) - Flowmeters at the Linda Mar and Rockaway Sewer Pump Stations are no longer working. Flow monitoring is critical for the operation of the wastewater collection system and the Calera Creek Water Recycling Plant.

The following continuing non-discretionary Projects that are currently underway and will require additional funding in FY 2026-27:

General Capital Projects (funded by the General Fund): None at this time General Capital Projects (Other Funds):

7. Manor Drive O/P Improvements (Fund 312 $5.5M) - widen the vehicular over-crossing over Highway 1 at Manor Drive, install traffic signals to better facilitate traffic, install pedestrian and bicycle improvements

8. Annual Pavement Striping & Marking Refresh Project – (Fund 213 $75k) - refresh centerlines, bicycle lanes, edgelines, crosswalks, stop bars and more striping on City roads
Wastewater Projects (funded by Enterprise Sewer Utility Fund 518):

9. Anza and Linda Mar Storm Water Pump Station SCADA Connection and Improvements $100k - Connecting the Anza and Linda Mar Stormwater Pump Stations to the Wastewater SCADA System.

10. Calera Creek and Wetlands Maintenance $150k - On-going maintenance and monitoring requirements for the restored Calera Creek wetlands.

11. Calera Creek Water Recycling Plant Permit Update $20k - Updating the CCWRP’s National Pollutant Discharge Elimination System (NPDES) permit.

12. Calera Creek Water Recycling Plant Piping Improvements Project $100k - Various piping systems around the Calera Creek Water Recycling Plant are nearing the end of their useful lives.

13. CCWRP Blower Replacement $100k - On-going purchases to replace aging blowers and motors for the Calera Creek Water Recycling Plant.

14. CCWRP Electrical Condition Assessment Project $300k – Continuous electrical improvements at Calera Creek Water Recycling Plant. 282

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15.CCWRP Environmental Compliance Project $50k - On-going needs to address environmental compliance related issues.

16. CCWRP Headworks Feasibility and Improvements $2.4M - The CCWRP design was based on screenings at the major pump stations. This Project will evaluate adding bar screening facilities at the Plant, addressing headworks channel lining degradation, and installing new grit equipment.

17. CCWRP Photovoltaic System Improvement Project- $1M – Replacing aging solar panels and identifying areas for additional panel coverage.

18. CCWRP Process Optimization Projects $50k – Projects to improve the efficiency and effectiveness of wastewater treatment operations.

19. Calera Creek Water Recycling Plant (CCWRP) Pump Replacement $50k - On-going purchases to replace aging pumps and supporting equipment at the Calera Creek Water Recycling Plant.

20. CCWRP R&R Project $250k - Ongoing Operations and Maintenance Projects to ensure reliable wastewater treatment operations.

21. Collection System Projects $300k - Projects to repair and/or replace the aging sewer mainlines and pump stations around the City. Projects will be evaluated and selected annually.

22. Collection System Rehabilitation & Replacement Projects: Vallemar and Rockaway Beach Avenue $12.4M - Work includes the replacement of approximately 26,000 LF sewer main and appurtenant work in the Vallemar neighborhood. This project is intended to be funded by a USEPA WIFIA Loan.

23. Crespi to Anza Sewer Replacement Project $500k - Rehabilitation and repair of the 12 inch sewer main along Pacifica State Beach and Highway 1.

24. Digesters - ATAD Modification Phase 3 $200k - This project will continue to make necessary improvements to ensure safe and reliable operations of the autothermal thermophilic aerobic digesters.

25. Easements R&R Project $200k - Replacing sanitary sewer lines in private utilities easements will improve system reliability and reduce the cost of system maintenance.

26. Lateral Grant Assistance $200k - The City provides a voluntary private service lateral replacement program to reduce the addition of I&I from defective private service laterals.

27. Linda Mar Pump Station Rehabilitation and Repair Project $1M – Completing engine pump, electrical and controls improvements to the Linda Mar Pump Station.

28. Sewer System Master Plan Update Phase 2 (New Development Data) $50k - Updating the existing Sewer System Master Plan and incorporating new development data.

29. Sharp Park Pump Station R&R Project $1M - The Sharp Park Pump Station's odor control system is at the end of it's useful life. The pump station wet well does not meet current design standards. This project will improve odor management around the pump station and improve reliable operations. 283

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Packet Pg. 604 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) City of Pacifica
Proposed Capital Projects FY 2026-27
Tyler Fund Number 101 209 210 211 213 312 518 (was 534) Project Project Number FY 2026-27 Allocation (Thousands) General Fund Measure A Gas Tax SB1/HUTA Measure W Street Improvements Highway 1 Improvement Wastewater - Revised Grants, Revenues, Loans, Bonds, and Insurance Reimbursements Terra Nova Boulevard and Oddstad Boulevard Pedestrian Crossing Improvements 27405 50 50 FY 2026-27 Pavement Resurfacing Project 26403 1,670 950 100 620 FY 2026-27 Sidewalk, Curbs, and ADA Ramps Improvement Project 26402 495 495 Oceana Bike Lanes 27408 92 9 83 Economic Development Infrastructure Improvements Project 27409 50 50 Pump Station Flow Meter 27410 550 550 Manor Drive O/P Improvements 00029 5,500 550 4,950 Annual Pavement Striping & Marking Refresh Project 26378 75 75 Anza and Linda Mar Storm Water Pump Station SCADA Connection and Improvements 26388 100 100 Calera Creek and Wetlands Maintenance P011 150 150 Calera Creek Water Recycling Plant Permit Update 26392 20 20 Calera Creek Water Recycling Plant Piping Improvements Project 26389 100 100 CCWRP Blower Replacement P0024 100 100 CCWRP Electrical Condition Assessment and Improvements P0037 300 300 CCWRP Environmental Compliance Project P0038 50 50 CCWRP Headworks Feasibility and Improvements P0040 2,400 2,400 CCWRP Photovoltaic System Improvement Project 26385 1,000 1,000 CCWRP Process Optimization Projects P0036 50 50 CCWRP Pump Replacement P0004 50 50 CCWRP R&R Project P0033 250 250 Collection System Projects C0005 300 300 Collection System Rehabilitation & Replacement Projects: Vallemar and Rockaway Beach Avenue C0050 12,352 12,352 Crespi to Anza Sewer Replacement Project 26386 500 500 Digesters - ATAD Modification Phase 3 P0002 200 200 Easement R&R Projects 26390 200 200 Lateral Grant Assistance C0032 200 200 Linda Mar Stormwater Pump Station Rehabilitation Project C0047 1,000 1,000 Sewer System Master Plan Update Phase 2 (New Development Data) C0007 50 50 Sharp Park Pump Station R&R Project (Formerly Sharp Park PS Facility Improvements Project) C0008 1,000 1,000 50 28,854 - 950 604 745 550 7,570 18,385 Total Allocation Non-Discretionary New/Yearly Projects requesting Funding in FY 26-27 Non-Discretionary On-going Projects Requesting FY 26-27 Allocation Budget numbers in the 1000's 284

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CITY OF PACIFICA
Supplemental Information

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Packet Pg. 607 Attachment: Attachment 6 FY2026-27 Operating Budget [Revision 1] (6241 : FY 2026-27 Budget Adoption) Long-Term Debt
The City generally incurs debt to finance projects or purchase assets, which will have useful lives equal to or greater than the related debt. In September 2019, Standard & Poor’s S&P Global Ratings raised its long-term and underlying rating to AA+ from AA on the City’s Pacifica’s existing taxable pension obligations bonds. At the same time, S&P Global Ratings raised its long-term rating and underlying rating to AA from AAon the City’s existing certificate of participation. The outlook on all ratings is stable.