Financial Forecast and Mid-Cyle Budget
Update
City Council Regular Meeting
June 17, 2025
Tonight’s
Agenda
Citywide Budget Amendments & Updates
Personnel Updates
Department Updates
General Fund Forecast
All Other Funds Forecast
Capital Improvement Program
City Council Goals Status
Citywide Budget Changes
Sources and Uses Original
Adopted
Recommended
Update $ Change % Change
Revenues 146,541,200 128,080,600 (18,460,600) (13)%
Proceeds of Debt 10,577,700 13,638,000 3,060,300 29%
Total Revenues 157,118,900 141,718,600 (15,400,300) (10)% Expenses
Personnel Services 56,440,500 56,774,900 334,400 1%
Operating Expenses 33,360,700 35,735,800 2,375,100 7%
Debt Service 6,804,600 6,806,600 2,000 <1%
Capital Outlay 58,820,300 50,319,579 (8,500,721) (14)%
Total Expenses 155,426,100 149,636,879 (5,789,221) (4)% Changes to Revenue Estimates
Fund Original
Adopted
Recommended
Update $ Change % Change
General Fund 53,550,700 49,962,800 (3,587,900) (7)%
Supplemental Sales Tax Fund 13,877,000 20,054,500 6,177,500 45% Recycled Water Fund 13,240,600 11,000 (13,229,600) (100)% Solid Waste Fund 1,390,000 3,338,700 1,948,700 140%
Capital Improvement Program 13,180,000 2,515,500 (10,664,500) (81)% Community Facilities District - 855,000 855,000 100%
Recycled Water: assumed grant revenue of $13.2 million for the construction of the recycled water distribution system.
Capital Improvement Program: assumed developer contribution of $10.2 towards the Huer Huero Creek Bridge construction.
Operating Budget Changes
Fund Original
Adopted
Recommended
Update $ Change % Change
General Fund 12,759,400 12,021,900 (737,500) (6)%
Supplemental Sales Tax Fund 16,500 616,500 600,000 3,636% Wastewater Fund 2,211,000 2,707,800 496,800 22%
Airport Fund 296,700 399,200 102,500 35%
Solid Waste Fund 440,900 2,545,400 2,104,500 477%
Risk Management Fund 2,138,000 1,943,000 (195,000) (9)% Solid Waste Fund: Historically, the City recorded net tipping fee revenue in its financial statements, meaning to total tipping fee collected was reduced by the amount the landfill operator kept for its operations. Now, total revenues will be recorded as well as total landfill operator expenses.
Capital Projects Budget Changes
Fund Original
Adopted
Recommended
Update $ Change % Change
Supplemental Sales Tax Fund 22,000 317,000 295,000 1,341% Airport Fund 485,000 335,000 (150,000) (31)%
Recycled Water Fund 13,230,000 - (13,230,000) (100)%
Fleet Central Service Fund 486,500 1,066,500 580,000 119% Gas Tax Fund 935,000 - (935,000) (100)%
The Recycled Water Distribution System is currently on hold while City staff explores alternative uses for the infrastructure installed-to-date. Staff will bring back a full operating and financial/forecast analysis later in the fiscal year. In the meantime, the City will continue to sell recycled water to Caltrans irrigation system adjacent to the Wastewater Treatment Plant.
Est. Fund Reserve Balances at 6/30/2025
- 2 4 6 8 10 12 14 16 18
Solid Waste
Airport
Risk Management
Information Technology
L&L Maintenance District
Fleet & Equipment
Wastewater
Water
Pension Trust
Supplemental Sales Tax
General
Millions
Personnel-FY 25/26
•Paramedic Squad (3 Firefighters/3 Engineers)
•Emergency Services Coordinator (deferred)
Fire & Emergency Services
•Community Action Team (7-day/week)
•Reclassify Training Coordinator to Officer
Police
• Technician (component of strategic plan)
Airport
•2 Maintenance Specialist (planned as part of user
study)
Water
0 50
100
150
200
250
300
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Full-Time Equivalent
CMO AS Police F&ES PW CS CD UTL
Department Budget Changes FY 2025-26
- 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 UTL
PD
PW
FES
AS
CS
CD
CMO
Original Updated
Financial
Forecast
An economist is an expert
who will know tomorrow why
the things they predicted
yesterday didn’t happen today
– Evan Esa
General
Fund
City
Manager’s
Office
Admin.
Services
Police
Fire &
Emergency
Services
Public
Works
Community
Services
Community
Development
Sales Tax
Fund
Police
Fire &
Emergency
Services
Street Repair &
Maintenance
City of El Paso de Robles
General Fund History & Forecast
-
10 20
30 40
50 60
70 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 Millions
Revenues Expenses
Actuals Forecast
Bradley Burns Sales Tax (1%)
-
2 4
6 8
10 12
14 16
18 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 Millions
Bradley Burns Sales Tax (1%)
-
2 4
6 8
10 12
14 16
FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Millions
Property Tax – Forecast 5% growth/year
-
2 4
6 8
10 12
14 16
18 20
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 Millions
Transient Occupancy Tax
-
2 4
6 8
10 12
14 16
Millions
General Fund Revenues
Charges
for
Services
Fee/Rate
Study
Underway
Council
Approval
Fall 2025
CDD Fees
Spring 2026
Revenues
$1.3 million
to $2.7
million
Use of
Money &
Property
Historical
Interest
Rates <1%
FY 24/25:
4.5%
Interest
Revenue:
$1.3
million
Park
Lease/
Rentals:
>$200,000
General Fund
Expenditures
Assumptions:
1. No new general fund positions
2. Salary growth assumption: 2.8% (same as CalPERS)
3. Operating expenditure inflation assumption: 3%
4. South Vine Street Bridge debt service payments ($1.2 million) begins in FY 2026-27; no other debt forecasted
5. Fully funding fleet replacement set-aside ($1.8 million)
6. Fully funding IT replacement set-aside ($542k)
7. Fully funding facility replacement set-aside ($750k)
8. Fully funding ADA transition plan set-aside ($500k)
General Fund Expenditures
- 5 10 15 20
Debt
Capital Projects
Risk Mgmt
IT
Fleet
CMO
Admin Svs
Comm Dev
Comm Svs
Public Works
Fire
Police
Millions
Personnel
63%
Operating
32%
Capital
3%
Debt
2%
Personnel Operating Capital Debt
General Fund Forecast
-
5 10
15 20
25 30
-
10 20
30 40
50 60
70 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 MillionsMillions
Revenues Expenses Fund Balance
General
Fund
City
Manager’s
Office
Admin.
Services
Police
Fire &
Emergency
Services
Public
Works
Community
Services
Community
Development
Sales Tax
Fund
Police
Fire &
Emergency
Services
Street Repair &
Maintenance
City of El Paso de Robles
Supplemental Sales Tax (1.5% override)
Since Inception
• Over $100 million received
• Police Department: $9.3 million
• 29 Positions Added
• 911 Equipment, ALR, Lateral Hiring, PSC Camera
• Fire & Emergency Services: $16.5 million
• 16 Positions Added
• Fire Station No. 3, Training Tower
• Street and Road Maintenance: >$50 million
• >$40 million in the queue
5-Year Forecast
• Over $106 million to be received over next 5
years
• $36.0 million towards police
• 30 positions
• Substation construction
• $30.3 million towards fire & emergency services
• 22 Positions (add Squad)
• Fire Station No. 3 Phase 3, Training Tower
• $47.7 million towards street maintenance
• 5 positions
All Other City Funds
Landscape and Lighting District Approved with Engineer’s Report/Annual Assessments Water and Wastewater Funds
Aligned with User Fee Study and Master Plan
Master Plan and Rate Study Review upcoming
Minimum Fund Reserves/Debt Service Ratio Met
Solid Waste Fund Established with tipping fee revenue
Airport Fund Airport Master Plan in development
Long-term forecasting with FAA grant assistance
Recycled Water Fund On hold
Internal Service Funds Fully funded
General Liability Insurance Premium: $200,000 budget savings Capital
Improvement
Program
South Vine
Street
Bridge
• $20.8 million project
• Mix of funding sources:
General, Transit, Traffic
Impact Fees, American
Rescue Plan Act
• Debt proceeds: Approval in
August 2025
Creston
Road Phase
2 • $3 million grant Senator
Laird
• $16 million project
• Currently in design
North River
Road
Bike/Pedestrian
Path
• Total Project Budget: $5.6
million
• $631,000 SLOCOG grant
• $2.2 million local funds
• Additional $2.8 million still
to be secured
Public Safety
Training Center
• $117,600 Expended-to-date
• Additional $2 million appropriated, total $5
million
• City Council Award June 17, 2025
• Insurance Services Offices (ISO) Rating
City Hall
Modernization Project
• $199,700 Expended-to-date
• Additional $2.6 million appropriated
• Construction between Thanksgiving and
Christmas Holidays
• Additional conference rooms and
workstations
• Security enhancements
All Other Facility Projects
Project Description Budget
Senior Center Roof Replacement $ 105,000
Senior Center HVAC Replacement 66,000
Senior Center Exterior Paint 30,000
PSC HVAC, Boiler, Pump Replacement 25,000
Transit Center Roof Replacement 22,000
Centennial Banquet Room Lighting 6,000
Total $ 254,000
Sherwood
Park
Pickleball Court:
Fully Funded
Turf & Irrigation Repair:
$1.5 million Facility Replacement Fund
Lighting Enhancements:
$1.5 million P&R DIF Fund
Citywide Parks Master Plan Implementation:
Mid-Year FY 26 (contingent)
Riverwalk
Lighting
Project
• New Trail Lighting
• Parks DIF: $360,000
• Rec Foundation: $100,000
• Total Project Budget:
$460,000
Centennial Park
BBQ
• State grant purchased Centennial Pool slide
(2006)
• Removed due to ADA non-compliance (2016)
• State review: required to replace amenity
• Project advanced one-year
• Project Scope
• BBQ area
• Shade Structure
• Prep Table
• Total Project Budget: $270,000
All Other Park and Recreation Projects
Project Description Budget
BSP Softball Shade Cloth Replacement $ 85,000
BSP Concession Stand Countertop 43,600
Robbins Field Backstop Replacement 25,000
Centennial Wading Pool Replaster 20,000
City Park Restroom Repaint 15,000
Centennial Gym Repaint 15,000
BSP Drinking Foutain Replacements 10,000
Carnegie Library Stair Repair 10,000
Veterans/Senior Center Monument Sign 2,500
Total $ 226,100
Road Maintenance Program
Road Segment Est. C/Over FY 25-26
Creston Road Phase 1 $ 4,512,794 $ -
24th St Bridge Rehabilitation 2,163,173 -
13th Street/Niblick Bridge Resurface 286,223 3,000,000
Riverside (17th to 24th Street) 1,143,880 -
Sherwood/Sierra Bonita/Turtle Creek 7,569,418 -
Sunset/Panorama Neighborhood 2,541,873 -
Serenade/Holstein-Bahama/St Andrews 2,009,076 -
Creston Road Phase 2 4,384,284 5,689,879
Melody Drive (east neighborhood) 2,978,091 -
16th/18th/30th/32nd/36th Streets 4,009,696 -
Dallons/Tractor-area - 1,890,000
Arciero Ct/Mesa Rd - 1,425,000
Combine/Danley/Germaine/Oakwood - 970,000
Total Projects in Progress $ 31,598,508 $ 12,974,879
Road Maintenance Program Changes
Preliminary Design
Final Design
Construction
Ongoing Measure J-20 Allocation
City Council Adopted Goals FY 2024-2026
Transportation
The City provides key infrastructure that supports quality of life, public safety, and economic development
Public Safety Services
The City provides responsive, high-quality police, fire, and emergency services to ensure the safety and well-being
of all residents and visitors
Cultural, Recreational, and Open Spaces
The City provides engaging, enriching, and inspiring quality of life experiences for residents and visitors
Homelessness Response
The City seeks to address homelessness by implementing
the City Council approved Homelessness Strategic Plan
Community and Economic Development
Paso Robles provides a pro-business economic ecosystem
that seeks diversification, growth, and innovation
Engaged and Responsive Government
Paso Robles is a customer-centric organization that seeks to efficiently and effectively utilizes finite taxpayer resources to maximize positive impact on the community
Conclusion
• Questions & Comments
• Approve Resolution 25-XXX, amending the
Operating and Capital Improvement
Budget, Authorized Position Listing and
Revised Master Pay Schedule for fiscal
year 2025-26, as presented, and direct the
City Manager to implement the budget.
• Approve Resolution 25-XXX(B), approving
the appropriations limit of $70,160,625
$76,217,904 for fiscal year 2025-26.