Attachment 2
Section 2. Based on an expectation that the City will receive $226,010 in 2026 CDBG funds, set the Public Hearing for 2026 CDBG Allocation to the regularly scheduled City Council meeting on Tuesday, March 3, 2026 and direct the following applications be listed in the Draft One Year Action Plan as follows:
a. Fund the 24th Street Crosswalk public
improvement project $168,858
b. Fund the ECHO and CAPSLO public services
request at equal amounts of $19,483 each $38,967
c. Administration $18,185
Total $226,010
APPROVED this 18
th day of November, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
John R. Hamon, Jr. , Mayor
ATTEST:
Melissa Martin, City Clerk
Council Agenda Report
From: Ryan Cornell, Administrative Services Director/City Treasurer Subject: Quarterly Financial and Budget Report Update and Amendments CEQA Determination: The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.
Date: November 18, 2025
Facts
1. The City’s adopted Fiscal Policy states that quarterly, but no less than semi-annually, there will be a comprehensive review of City operations in comparison to the existing budget. The intent of this report is to fulfill that requirement.
2. Periodic financial reporting is critical as it ensures transparency and accountability; supports informed decision-making; aids in strategic planning; and improves communication with both the residents and internal staff.
3. This report provides an overview of the projected revenues and expenditures through the end of the fiscal year (FY) based on actual financial activity through September 30, 2025.
4. On June 17, 2025, City Council approved the mid-cycle update to the City’s Operating and Capital Budget for FY 2025-26. Several assumptions and predictions were used in the budget process; therefore, it is important to revisit assumptions to ensure accuracy and solvency.
5. In some cases, City Council may authorize staff to proceed with certain service level increases—or decreases—with the understanding that these adjustments will be officially incorporated into the budget during the next quarterly report, creating a single resolution to streamline the process.
6. The Parking Fund was established to account for the activity associated with the paid downtown parking program, with the intent that the cost to operate the program be fully funded through parking revenues and fines. Knowing that it would take a few years for the program to be revenue neutral, a loan from the General Fund was established to cover any initial shortfalls. As of June 30, 2025, the loan balance was $679,939.
7. On May 21, 2024, City Council adopted Ordinance No. 1139, which amended portions of the Paso Robles Municipal Code related to Parking Management. As a result of that action, the parking program was terminated in 2024; however, the interfund loan needs to be formally written off now that operations have ended.
8. On November 3, 2020, the City purchased the leasehold interest and improvements at 4301 Second Wind Way. There were several restricted funds used to purchase the site including police safety development impact fee funds because the site was originally intended for a police substation. The building is now the office complex for Public Works and Administrative Services staff and as such, funding needs to be updated.
9. On September 3, 2025, the City entered into a Settlement and Release Agreement with the Tribune and Chris Bausch. Appropriations from General Fund reserves are required to fund the required payments.
Options
1. Take no action;
2. Receive and file the report and approve the proposed appropriations;
3. Provide alternative direction to staff.
Analysis and Conclusions
This is the first financial report since the budget was updated in June 2025. It is prudent to examine the projections and assumptions used during the budget process and to ensure they are still accurate. As such, this financial report provides an opportunity to examine the financial activity of the City for the first part of FY 2025-26. As with previous financial reports, the focus of this report is on the General Fund, the main operating account for the City, as well as the Supplemental Sales Tax and Capital Improvement Program (CIP) Funds, including police, fire and emergency services, and street repair and rehabilitation.
General Fund Revenues
As stated during the midcycle update in June, the City’s local economy remains stable, though exhibiting relatively flat growth than in recent years. As shown above, the City’s three largest revenue sources (sales tax, property tax, and transient occupancy tax (TOT)) in FY 2021-22 totaled $35.6 million; in FY 2024-25, it was $37.2 million, representing a 1.5% increase on average per year. Looking ahead to FY 2025–26, these revenue sources are projected to be $38.7 million, representing a 4% increase.
Sales Tax
Statewide, persistent economic headwinds continue to shape short-term sales tax outlook. According to HDL Companies, while consumer spending on taxable goods remains steady, recent declines in consumer confidence—driven by inflationary pressures, tariff concerns, and rising unemployment—pose risks to sustained revenue growth. It should also be noted that the Federal Reserve’s recent interest rate reduction in September, the first since December 2024, signals a responsive monetary policy aimed at stabilizing economic conditions; this reduction does not alter anticipated spending patterns. For FY 2025- 26 growth statewide is anticipated to be 1.2% and 2.7% in FY 2026-27. Similar trends are anticipated for the City. See Attachment No. 1 for additional statewide sales tax trends and economic driver information. 0 5
10 15
20 25
30 35
40 45
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026*
Millions
Top 3 Tax Revenue Sources by Fiscal Year
Sales Property TOT
Property Tax
Property taxes have emerged as a consistent bright spot in the financial landscape for the City, providing steady and resilient growth. For Fiscal Year 2025-26, the City realized a net increase in assessed value of
4.97%, whereas San Luis Obispo County saw a 3.69% increase. The City’s growth is attributed to 1) change in, or transfer of, ownership (1.95%); 2) change from the Prop 13 allowable CPI increase (1.76%); and 3) new construction of non-residential units (1.19%). For the latter, specifically, the Ava Hotel, the future Residence Inn on South Vine Street, and the Paso Robles Inn all had significant increases to their assessed valuation due to the recent improvements made. Looking forward, the residential development growth on the east side of the City, combined with rising property values, indicates that property tax revenues will be stable with upward momentum. See Attachment No. 2 for the City’s Property Tax Newsletter.
Transient Occupancy Tax
Transient Occupancy Tax (TOT) is the City’s third-largest source of General Fund revenue, accounting for approximately 15–20% of the fund’s total income. From 1996 through 2019, TOT revenues experienced steady annual growth of roughly 7–10%. However, in FY 2019-20, revenues declined by 18.2% as a result of the COVID-19 pandemic, before rebounding strongly in FY’s 2020-21 and 2021-22. In Fiscal Year 2021- 22, TOT revenue reached $9.8 million; however, FY 2024-25 collections were $4,961 lower than the FY 2021-22, indicating no growth in recent years, nor is it anticipated to grow in FY 2025-26.
Slower tourism growth affects far more than just TOT revenues—it has a ripple effect throughout the local economy. When visitor activity levels off, spending at hotels, restaurants, shops, and attractions also slows, leading to reduced sales tax collections. City businesses that depend heavily on visitor traffic, such as retail stores, wineries, and entertainment venues, may experience lower profits, which can in turn impact employment and wages in the hospitality sector. This softening of tourism-related spending not only constrains City revenue growth but also dampens overall economic vitality, as fewer tourism dollars circulate through the community to support small businesses and essential public services. It is further complicated with the additional hotels under construction and the potential for market saturation. As such, it is going to be critical that the City and—and its travel partners—continue to invest in marketing, product diversification (i.e., new experiences), and making the visitor experience memorable. -
2 4
6 8
10 12
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Millions
Fiscal Year Ended
TOT Revenue History
General Fund Expenditures
For FY 2025–26, the City Council approved $55.7 million in General Fund appropriations. After incorporating approved adjustments and carryovers from FY 2024–25, total appropriations amount to $56.6 million. During the first quarter of the fiscal year, the General Fund expended approximately $9.6 million, representing about 17% of total appropriations. Current projections indicate that year-end expenditures will reach roughly 96.4% of appropriations, which is consistent with historical spending patterns. This suggests that the expenditure assumptions used during the budget process remain accurate and reliable.
There is one General Fund budget amendment recommended during this report relating to the Settlement and Release Agreement with the Tribune and Chris Bausch. Appropriations from General Fund reserves are required in the amount of $300,000 to cover the costs associated with the settlement agreement as well as internal City Attorney costs that have been incurred outside the normal baseline budget appropriations.
Now that revenue growth has begun to slow, managing expenditures has become increasingly important to maintain fiscal stability. Spending is projected to rise while revenues plateau or decline, placing pressure on reserves and limiting the City’s ability to fund essential services and future priorities.
Strategically prioritizing expenditures will be critical in the upcoming years so the City can respond to economic uncertainty and help avoid the need for abrupt budget cuts or service reductions in later years.
General Fund Reserves
The General Fund originally projected ending unappropriated reserves of $17.1 million as of June 30, 2025.
Actual reserves totaled $19.1 million, or 37.2% of General Fund revenues, reflecting a positive variance of approximately $1.5 million (inclusive of FY 2024–25 carryovers). This outcome confirms that the year-end estimates used during the budget process were accurate and no further adjustments are necessary. It should be noted, however, that the FY 2025–26 budget includes a planned drawdown of reserves. As a result, reserves are projected to total $16.0 million, or 31.1% of General Fund revenues, by June 30, 2026—remaining slightly above the City’s fiscal policy goal of 30%.
Parking Fund
In 2019, the City launched a paid on-street parking program in the downtown area. Intended to be selfsustaining through parking revenues and fines, the program required temporary General Fund support to cover startup costs for equipment, signage, and software. A loan was established for these costs, accruing quarterly interest at the Local Agency Investment Fund (LAIF) rate plus 1%.
In 2024, the City Council voted to end the program. As of June 30, 2025, the Parking Fund owed $663,482 in principal and $16,457 in interest, totaling $679,939. The attached resolution formally writes off this General Fund loan, which is being classified as long-term, was already excluded from reserve calculations and therefore has no impact on reserve levels. This action represents the final step in formally closing out the parking program.
Second Wind Way
In 2020, the City acquired the leasehold interest and improvements at 4301 Second Wind Way for $6.1 million. The site includes five buildings: one warehouse, two office buildings, and two airplane hangars.
Plans for the property have evolved over time. Initially, it was intended to house the City Hall Annex and Corporation Yard. In 2021, the plan shifted to constructing a police substation and evidence storage
facility. Currently, one of the office buildings accommodates Public Works and Administrative Services staff.
Because $838,753 in Police Development Impact Fees were used toward the purchase, state law requires these funds to be reimbursed now that police facilities will no longer be constructed. This reimbursement affects the fiscal position of the General Government Impact Fee Fund requiring City Council approval. As of June 30, 2025, General Government impact fee reserves total $10.7 million, providing sufficient funds to cover the reimbursement.
Supplemental Sales Tax – Measure J-20 and I-24
Measures J-20 and I-24, the City’s local supplemental sales tax measures, remain a significant and important resource for the City. In Fiscal Year 2024-25, $6 million was expended across police, fire and emergency services, and road maintenance and rehabilitation. In FY 2025-26, funding includes seven new public safety positions: three firefighters, three fire engineers, and one Community Action Team police officer.
The six new Fire and Emergency Services positions allowed the City to reinstate its dedicated paramedic squad in November 2025. A paramedic squad is a specialized emergency response unit staffed by paramedics and equipped with advanced life support capabilities. Originally deployed in 2019, the squad was later reallocated to a traditional fire crew when Fire Station No. 3 was brought online. Reactivating the paramedic squad enhanced emergency medical response capabilities while improving operational efficiency. By responding to lower-acuity calls with the appropriately sized unit, the City can reduce the need to dispatch a full-size fire engine for incidents that do not require a fire truck, thereby preserving critical resources and improving overall system readiness.
In 2019, the City Council formally approved the creation of the Community Action Team (CAT). The CAT aims to address community issues, such as homelessness, by fostering collaboration, identifying problems, and implementing solutions, focusing on crime prevention, quality of life, and social services, with a goal of improving the well-being of residents. Adding a fourth officer to the CAT enabled these specialized police services to be conducted on a seven day per week basis.
The supplemental sales tax funds also support the City’s Road Maintenance and Rehabilitation Program.
Currently, the City has $37.6 million appropriated but unexpended across 15 active projects. The City has expended $3.0 million on these projects this fiscal year, as summarized below:
Budget
Expended in
FY 25-26
Expendedto-DateRemaining
Budget
Creston Road Phase 2 $10,869,880 $ 81,450 $ 702,186 $10,167,694 Sherwood/Sierra Bonita 7,695,000 17,553 143,135 7,551,865 16th/18th/30th/32nd/36th 4,045,000 29,491 68,665 3,976,335 Sunset/Panorama 2,600,000 787 73,113 2,526,887
Melody Drive 3,094,800 852,664 1,006,511 2,088,289
West Side Streets (East Spring) 1,950,000 - - 1,950,000 Creston Road Phase 1 11,423,162 1,871,544 9,481,110 1,942,052 Dallons/Tractor-area 1,888,999 33,388 78,575 1,810,424
Orchard Bungalow 1,800,000 8,333 8,333 1,791,667
Arciero Ct/Mesa Rd 1,424,999 26,643 48,516 1,376,483
Riverside 1,200,000 - 56,120 1,143,880
Serenade/Holstein-Brahama 1,583,100 39,969 959,039 624,061 Elm Ct/Capitol Hill/Palm Ct 600,000 - 318,053 281,947
Merry Hill/15th St/Terrace Hill 940,000 - 719,110 220,890 Various Traffic Sign/Striping 600,000 - 478,708 121,292 Total $51,714,940 $ 2,961,822 $14,141,174 $37,573,766
In April 2025, the City Council approved the construction contract for Pedestrian and Bicycle Enhancements adjacent to Flamson Middle School. The original budget included a contingency (i.e., additional budget for unforeseen and unexpected costs) of $60,000. However, as the project progressed, several issues arose including retrofits to accommodate drainage, expanded areas for brick pavers, expanded curb ramps to match existing conditions, and the need to expand the paving repairs due to its deteriorated condition. An additional supplement of $40,000 is proposed to come from Measure I-24.
Fiscal Impact
Recommended budget amendments, as discussed above, total $1.9 million and are summarized as follows:
Item Funding Source Budget
Parking Fund Loan Write-Off General $ 680,000
Settlement and Release Agreement General 300,000
Flamson Pedestrian/Bike Project Measure I-24 40,000
4301 Second Wind Way General Government DIFs 838,753
Total $ 1,858,753
CEQA
The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.
Recommendation
Receive and file this report and approve Resolution 25-XXX, amending budget appropriations, as presented.
Attachments
1. California Consensus Forecast 2Q25 - HdL Companies
2. The City of Paso Robles Property Tax Newsletter Tax Year 2025/26 - HdL Companies
3. Resolution 25-XXX – Amending Budget Appropriations and Parking Loan Write-off
4. General Fund Budget Report
5. Supplemental Sales Tax Budget Report
6. Capital Improvement Program Budget Report
888.861.0220 | [email protected] | hdlcompanies.com
CALIFORNIA FORECAST
SALES TAX TRENDS & ECONOMIC DRIVERS
SEPTEMBER 2025
Napa Valley, CA
Attachment 1
STATEWIDE
SALES TAX TRENDS
2025/26 | 2026/27 2025/26 | 2026/27
Overview: Persistent economic headwinds continue to shape the short-term sales tax outlook. While consumer spending on taxable goods remains steady, recent declines in consumer confidence—driven by inflationary pressures, tariff concerns, and rising unemployment—pose risks to sustained revenue growth. The Federal Reserve’s recent interest rate reduction in September, the first since December 2024, signals a responsive monetary policy aimed at stabilizing economic conditions; this reduction does not alter anticipated spending patterns. Modest increases shown above simply recapture statewide sales tax decreases that occurred in the prior two fiscal years.
Fuel/Service Stations 3.4% | 4.0%
Fuel prices and consumption were both down again in the second quarter of 2025, with actual results of (–8%) in alignment with a forecasted decline of 7%. Oil barrel prices held fairly steady, but softer statewide demand pushed revenue lower. California’s new Low Carbon Fuel Standards rules, the phased shutdown of Phillips 66, and the planned closure of Valero’s Benicia refinery are all lining up to put pressure on prices starting later this year. While no legislation is currently planned, potential state action to keep the Benicia refinery open would help smooth the impact of that closure. These factors, combined with OPEC supply risks and indicate a slightly better economic outlook. The forecast points to modest recovery in FY 2025–26 with long-term growth settling in the 3–4% range.
General Consumer Goods 0.8% | 1.3%
Consumer spending on general retail categories remained robust in Q2 2025. Absent in-state fulfillment centers and out-ofstate retailers, this category contracted 0.7% during the spring.
While consumer confidence and sentiment indicators suggest a neutral to less optimistic view of the economy, anticipate a flatter outlook for consumption rather than a large pullback. Rising tariffrelated costs continue to pressure household budgets. Looking ahead, payments could see a mild rise in the second half of FY 2024-25. Some expert reports suggest discretionary services spending has diminished, supporting more spending on taxable goods. Wage growth for middle and higher earners should hold up outlays, employment uncertainty remains a potential headwind..
Restaurants/Hotels 2.1% | 3.4%
Restaurants have seen minimal direct impact from tariffs so far.
Instead, rising labor and operational costs are driving menu price increases. Many establishments are working hard to limit food and drink hikes, mindful of the fact that lower-income consumers are dining out less frequently. To retain these customers, restaurants are promoting deals and value menus. Meanwhile, Californians spent more of their travel budgets locally this summer, helping to offset the decline in international tourism. Industry closures are primarily affecting underperforming locations while new restaurants continue to open, signaling ongoing resilience and adaptation.
State and County Pools 3.5% | 3.0%
In alignment with HdL expectations, fiscal year 2024-25 saw pool- generated taxes rise 3.2% over prior year totals. Robust investment in online tools and systems such as AI are reshaping shopper experiences, shortening delivery times and optimizing ordering capabilities and supply chain structures. Major brands continue to offer off holiday season ‘events’ over a few days to draw in new website traffic which can boost ecommerce exposure and sales. While the use of technology across demographic segments does vary, the convenience of ordering everything from food delivery to products made internationally is expected to improve pool-based revenues in each of the next two years.
Autos/Transportation 0.4% | 3.0%
Forecasts for auto sales tax revenue over the next two years remains cautious as shoppers continue to face elevated vehicle prices, additional upward pressure from tariffs, and restrictive financing conditions, compounded by the September 2025 expiration of the federal $7,500 tax credit for electric vehicle purchases. While the Federal Reserve took a step to lower short-term interest rates, it is uncertain how much this will affect long -term borrowing costs, which are most relevant for auto lending. At the same time, recent signs of weakness in the labor market raise concerns about consumer demand, leading this quarter’s forecast to be moderated slightly to reflect the risks that a softening job market poses to future auto sales and related sales tax revenues.
Building/Construction -1.5% | 1.8%
Early 2025 saw elevated sales as contractors stockpiled inventory ahead of expected tariff hikes. These purchases tapered off by Q2, except for solar panels, which remained in demand due to the 30% federal credit expiring on December 31. Infrastructure projects contributed less to the tax base, with new developments slow to launch. The forecast assumes the Fed’s September rate cut will make home equity loans and credit lines more appealing, likely prompting a modest rise in home renovations. However, developers are unlikely to respond quickly to lower mortgage rates due to high material costs and ongoing economic uncertainty. Data center projects expected in 2026 will help, but not enough to offset broader declines.
Business/Industry 1.2% | 3.1%
Faced with a variety of economic pressures, the diverse businessindustrial group managed a positive result during the spring months of 2025 – expanding 5.7%. Customers heavily favored online shopping; thus, California fulfillment centers propelled revenues higher. Business-to-business benefitted from one-time technology purchases, and energy projects boosted electrical equipment sales. Yet, many categories remained flat or declined with variables such as borrowing costs and tariff fears curtailing growth. Several solar/energy installations concluded – and comparative revenues tumbled. The statewide outlook anticipates low growth for the current fiscal year and modest improvement thereafter, which will vary based on the size and character of local businesses.
Food/Drugs -1.4% | 0.5%
Retail performance in Q2 2025 showed mixed results across key segments. Grocery Stores profits rose 0.05% as retailers enhanced omnichannel experiences and formed cost-saving partnerships to boost profitability. Convenience & Liquor Markets had declined revenues, but stores are evolving into modern convenience hubs by offering fresh food and premium grab-and-go options. Cannabis merchants fell 2.1%; to attract new patrons, retailers are launching cannabis lounges combining entertainment and café-style experiences.
Due to store closures and rising costs, shoppers are shifting away from drug stores to discount and big-box retailers. Anticipate fiscal year 2025-26 to drop further as sectors herein struggle to capture sales.
TOTAL 1.2% | 2.7%
2025/26 | 2026/27
HdL Companies California Forecast
September 2025
Attachment 1
Proposition 172
Fiscal year 2024-25 statewide Proposition 172 (P-172) revenues declined 0.5%, following the 1.1% drop in fiscal year 2023-24. The current the forecast anticipates modest growth of 1.2% and 2.7% for fiscal years 2025-26 and 2026-27, respectively. Current county projections include pro-rata factors published by the State Controller’s Office in July 2025 (based on updated calendar year 2024 actuals). As the calendar year Bradley-Burns results fluctuate due to taxpayer allocation modifications, audits, economic impacts, etc., pro-rata growth factors and resultant P-172 revenues will vary for many counties.
NATIONAL AND STATEWIDE
ECONOMIC DRIVERS
U.S. Real GDP Growth 1.9% | 2.2%
The U.S. economy is showing signs of overheating, driven by persistent federal deficits, elevated asset prices, and sustained inflows of foreign capital. These factors suggest that current levels of consumption and investment rely heavily on borrowing and external financing, raising concerns about long-term sustainability.
Economists note that when economies expand under such
conditions, risks of instability increase if corrective measures are delayed. A prudent long-term approach could include gradual interest rate increases to cool financial markets, while beginning to pay down the national debt through tax increases and spending cuts.
CA Unemployment Rate 5.5% | 5.3%
The labor market in California has cooled over the last quarter.
Between April and July, the state’s unemployment rose to 5.5%, while the rate in the U.S. as a whole held steady at 4.2% Excluding the pandemic-induced increase in unemployment, the state has not seen unemployment at this level since April 2016. The biggest shift over the past year has been among teenage workers, whose employmentto-population ratio dropped 2.3 percentage points, while their labor force participation fell by 2.8 percentage points year-over-year in July.
CA Total Nonfarm
Employment Growth 0.4% | 0.5%
California enters fall 2025 on a slower growth trajectory, short of a downturn but marked by cooling momentum. The state’s job market has softened, and inflation is running at a more typical pace, although consumer prices remain high. Housing is steady but tight; home prices are high, sales are flat, and new construction does not meet demand.
California’s long-term affordability challenge persists, underscoring the need for increased housing supply. Together, these indicators point to a cooling state economy; growth is slower, labor markets are softer, and price pressures have normalized.
U.S. Unemployment Rate 4.4% | 4.2%
The U.S. economy has been decelerating to a new, steady, lower pace of job growth, around 1% annually, since its post-pandemic recovery, reflecting a structural slowdown despite steady labor demand. Data from the BLS’s Job Openings and Labor Turnover Survey show job separations and openings holding within normal ranges, indicating the deceleration of job growth isn’t driven by layoffs or weakening demand. Consistent unemployment insurance claims, in the 200,000 - 250,000 range, and the unemployment rate itself remains just above 4%—considered full employment by most economists—further underscore this trend.
CA Residential
Building Permits 97,812 | 108,556
Permits in California have held steady at about 100,000 annually for the past 18 months. This pace is roughly one-third of the 310,000 per year needed to meet the state’s goal of 2.5 million new homes over eight years. Substantial increases in construction will be required to make meaningful progress on affordability. In 2023, Governor Newsom signed a CEQA reform package aimed at streamlining environmental review, expediting infill and affordable housing projects, and exempting local rezoning from CEQA to accelerate site readiness while maintaining protections for sensitive lands. While these changes may support higher production over time, they have not yet been reflected in permitting data.
CA Median Existing
Home Price $715,638 | $763,258
California’s housing market is also cooling. In 2020-2021, demand was supercharged by the government’s pandemic stimulus and by very low mortgage rates (around 3%). That era is over. Today, rates are holding near 6.5% to 7.5%, mobility has declined, and growth in jobs and incomes has slowed. With fewer new households forming, home sales have weakened and inventory is rising. The interaction between supply and demand determines prices, and with demand cooling and inventory higher, some of the heat has left the market even though prices remain elevated. 2025/26 | 2026/27 2025/26 | 2026/27
HdL Companies California Forecast
September 2025
Attachment 1
Beacon Economics LLC
310.571.3399 | BeaconEcon.com
Beacon Economics has proven to be one of the most thorough and accurate economic research/analytical forecasting firms in the country. Their evaluation of the key drivers impacting local economies and tax revenues provides additional perspective to HdL’s quarterly consensus updates. The collaboration and sharing of information between Beacon and HdL helps both companies enhance the accuracy of the work that they perform for their respective clients.
HdL Companies
888.861.0220 | [email protected] | hdlcompanies.com California’s allocation data trails actual sales activity by three to six months. HdL compensates for the lack of current information by reviewing the latest reports, statistics and perspectives from fifty or more economists, analysts and trade associations to reach a consensus on probable trends for coming quarters. The forecast is used to help project revenues based on statewide formulas and for reference in tailoring sales tax estimates appropriate to each client’s specific demographics, tax base and regional trends.
Delivering Insight, Revenue, and Efficiency
to Local Government
Attachment 1
THE CITY OF PASO ROBLES
TAX YEAR 2025/26
PROPERTY TAX NEWSLETTER
DH
TAXABLE ASSESSED VALUE
$7.3 BILLION
+5.0%
PASO ROBLES COUNTY
4.7%
-0.1B
0.0B
0.1B
0.2B
0.3B
0.4B
0.5B
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
OTHER PRIOR YEAR TRANSFER
OF OWNERSHIP
PROP. 13 INFLATION
ADJUSTMENT NEW CONSTRUCTION
VALUE GROWTH (IN BILLIONS)
HISTORY OF VALUE CHANGES BY CAUSE
INCLUDING TOTAL ASSESSED VALUE
4.4B 4.7B 5.0B 5.2B 5.5B 5.7B 6.1B 6.6B 7.0B 7.3B
The Other change category may include effects of assessment appeals, multi parcel sales, and changes to secured exemptions, personal property, or utility-owned property values
PROPERTY
HIGHLIGHTS
TOP 10 OWNERS
WITH PRIMARY USE CATEGORY, TOTAL VALUE AND % OF ALL VALUE 1 FIRESTONE WALKER LLC COMMERCIAL $108 MILLION 1.48%
2 JUSTIN VINEYARDS AND WINERY LLC COMMERCIAL $101 MILLION 1.38% 3 BLUE OAK TIC OWNER I LLC RESIDENTIAL $78.6 MILLION 1.08% 4 PDOF PASO LLC COMMERCIAL $63.7 MILLION 0.88%
5 FLT ARRIVE PASO LLC RESIDENTIAL $52.9 MILLION 0.73%
6 TREANA WINERY LLC UNSECURED $39.9 MILLION 0.55%
7 AYRES - PASO ROBLES LP COMMERCIAL $37.0 MILLION 0.51% 8 PASO GOLDEN HILL LLC COMMERCIAL $35.5 MILLION 0.49%
9 HOTEL AVA LLC VACANT $35.2 MILLION 0.48%
10 STORAGE VINEDO LLC VACANT $34.9 MILLION 0.48%
TOP 10 TOTAL $586 MILLION 8.05 %
The largest increase in secured assessed value
was 944 Pine Street which increased by $21.8
million, or 163%, as a result of an increased
assessment for improvements.
The second largest increase in secured
assessed value was 5175 Airport Road which
increased by $12.2 million, or 206%, as a result
of increased assessment for improvements.
The third largest increase was 416 Spring
Street which increased by $6.1 million as a
result of a change of a dropped exemption.
The fourth largest increase was 121 Wilmar
Place which increased by $4.58 million as a
result of increased assessment for
improvements.
hdlcompanies.com/proptax | 714 879.5000 Published by
Attachment 2
TAX YEAR 2025/26 THE CITY OF PASO ROBLES - PROPERTY TAX NEWSLETTER
0.4%
0.8%
1.2%
1.6%
2.0%
2.4%
FRESNO KERN MERCED MONTEREY SAN BENITO SAN LUIS
OBISPO
SAN MATEO SANTA
BARBARA
SANTA CLARA SANTA CRUZ
ESTIMATED VALUE GROWTH FROM SALE TRANSFERS AS A PERCENTAGE OF TAXABLE VALUE BY COUNTY
PROPERTY TAX FACTS
• In 2025, 16,577 City parcels were taxable.
• 65.8% of the City's 2025 assessed values are
residential use, from 59.7% of the parcels.
Taxable values are enrolled Jan. 2025
(reflecting 2024 activity). Tax billing starts
Sept./Oct. 2025. Revenue is remitted to
agencies from late 2025 through mid-2026.
•
REAL ESTATE TRENDS
Through June 2025, about one-third of the 43
counties where we purchase sales data are still
experiencing declines in median sale prices. In
many areas, however, home sales rebounded
in June ending three months of median price
declines. The mostly modest year-over-year
median sales price changes for June 2025
showed the State’s Far North area having the
strongest price growth at 13.7%; the Central
Coast grew by 11.4%; Southern California grew
by 1.9%; and, the San Francisco Bay area grew
by 1.0%. The Central Valley area posted a
median sales price decline, slipping down by
0.8 %. The median sale price of Paso Robles
detached single-family homes from January
through August 2025 was $763,500, an
increase of $26,000 (3.5%) from 2024's median
price.
CHG %
DETACHED SINGLE-FAMILY HOMES
MEDIAN SALE PRICE HISTORY
YEAR SALES MEDIAN PRICE
2016 483 $440,000 8.1%
2017 517 $465,000 5.7%
2018 449 $475,500 2.3%
2019 443 $512,500 7.8%
2020 458 $540,000 5.4%
2021 509 $601,000 11.3%
2022 331 $661,500 10.1%
2023 266 $679,500 2.7%
2024 264 $737,500 8.5%
2025* 181 $763,500 3.5%
* Year-to-Date (through August 2025)
2.0M
4.0M
6.0M
8.0M
10.0M
12.0M
14.0M
16.0M
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 VLFAA PROP. TAX REV. OVERRIDE TAX RATE
REV.
GEN. FUND 1% SHARE
REV.
REVENUE (IN MILLIONS)
ASSESSED VALUE-BASED REVENUE HISTORY BY COMPONENT
hdlcompanies.com/proptax | 714 879.5000 Published by
Attachment 2
Attachment 3
RESOLUTION 25-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PASO ROBLES AMENDING THE OPERATING AND CAPITAL BUDGET FOR FISCAL YEAR 2025-26 AND APPROVING THE
INTERFUND LOAN FORGIVENESS BETWEEN THE GENERAL FUND AND THE DOWNTOWN PARKING FUND
WHEREAS, in accordance with the Council’s adopted fiscal policies, no less than semi-annually, there will be a comprehensive review of the operations in comparison to the existing budget; and WHEREAS, because there are several assumptions and predictions used in the budget process, it is important to revisit those assumptions to ensure accuracy and solvency of the City; and WHEREAS, in order to lessen the administrative burden of producing and retaining City Council resolutions for all budget adjustments made throughout the year, in some instances the City Council provides authorization to move forward on service level increases with the intention of officially amending the budget by resolution during these quarterly budget reports allowing for multiple service level adjustments to be compiled into one resolution; and
WHEREAS, on June 17, 2025, City Council adopted the Operating and Capital Budget for Fiscal Years 2025- 26; and
WHEREAS, budgets are plans, and plans may change as new information comes to light and as the environment in which the City operates changes; and
WHEREAS, the Parking Fund was established to account for the activity associated with the paid downtown parking program, with the intent that the cost to operate the program be fully funded through parking revenues and fines; and
WHEREAS, on October 1, 2019, City Council approved Resolution No. 19-106, authorizing a loan from the General Fund not-to-exceed $1 million for the start-up costs related to the downtown parking program; and
WHEREAS, on May 21, 2024, City Council adopted Ordinance No. 1139, amending portions of the Paso Robles Municipal Code related to parking management, resulting in termination of parking operations; and
WHEREAS, on June 30, 2025, the Parking Fund loan, plus accrued interest, totaled $679,939.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. All of the above recitals are true and correct and incorporated herein by reference.
Section 2. The proposed amendments to the FY 2025-26 Operating and Capital Improvement Budget are as follows:
a. General Fund: $300,000 for settlement and release agreement;
Attachment 3
b. Capital Improvement Fund/Supplemental Sales Tax Fund: $40,000 for towards the Flamson Pedestrian and Bicycle Crossing Project;
c. General Government Impact Fee Fund: $838,753 for 4301 Second Wind Way office building.
Section 3. The interfund loan between the General Fund and the Parking Fund of $680,000 is forgiven and written off.
APPROVED by the City Council of the City of Paso Robles this 18th day of November 2025 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
John R. Hamon Jr., Mayor
ATTEST:
Melissa Martin, City Clerk
CITY OF EL PASO DE ROBLES
FIRST QUARTERLY FINANCIAL REPORT
Fund Overview - General Fund
For the Fiscal Year Ending June 30, 2026
REVENUES
Taxes
Sales Tax 13,321,000 1,013,662 13,534,311 213,311 101.6% Property Tax 14,912,000 485,483 15,367,092 455,092 103.1% Transient Occupancy Tax 10,100,000 1,922,493 9,819,903 (280,097) 97.2% Other Taxes 3,367,000 948,724 3,616,329 249,329 107.4%
Total Taxes 41,700,000 4,370,362 42,337,635 637,635 101.5% Charges for Current Services 3,567,000 1,031,259 3,151,670 (415,330) 88.4% Licenses and Permits 1,400,000 212,873 1,096,402 (303,598) 78.3% Use of Money and Property 2,500,000 (6,979) 2,500,000 - 100.0% Fines and Forfeitures 200,000 25,180 239,328 39,328 119.7% Intergovernment Revenues 762,902 307,214 762,902 - 100.0% Other Revenues 84,764 10,469 84,764 - 100.0%
Interfund Transfers 1,255,500 - 1,322,528 67,028 105.3% Total Revenues 51,470,166 5,950,378 51,495,229 25,063 100.0%
EXPENDITURES
City Council/City Manager's Office
Personnel Services 1,589,700 233,425 1,392,519 (197,181) 87.6% Operating Expenses 1,010,077 306,057 1,385,308 375,231 137.1% Total City Manager's Office 2,599,777 539,482 2,777,827 178,050 106.8% Administrative Services
Personnel Services 1,911,600 329,161 1,811,800 (99,800) 94.8% Operating Expenses 1,052,700 246,442 1,025,614 (27,086) 97.4% Total Administrative Services 2,964,300 575,603 2,837,414 (126,886) 95.7% Police
Personnel Services 12,516,678 2,369,996 11,939,014 (577,664) 95.4% Operating Expenses 1,518,138 409,422 1,576,489 58,351 103.8% Capital Outlay - 1,250 14,657 14,657 >100%
Total Police 14,034,816 2,780,668 13,530,160 (504,656) 96.4% Emergency Services
Personnel Services 7,653,900 1,799,739 7,665,199 11,299 100.1% Operating Expenses 860,859 84,902 835,661 (25,198) 97.1% Capital Outlay 101,557 32,739 101,557 - 100.0%
Total Emergency Services 8,616,316 1,917,380 8,602,417 (13,899) 99.8% % Received/
Expended
Variance from
EOY Projected
Projected End
of Year
Actual
As of 9/30
Current
Budget
Attachment No. 4
CITY OF EL PASO DE ROBLES
FIRST QUARTERLY FINANCIAL REPORT
Fund Overview - General Fund
For the Fiscal Year Ending June 30, 2026
% Received/
Expended
Variance from
EOY Projected
Projected End
of Year
Actual
As of 9/30
Current
Budget
Public Works
Personnel Services 3,940,900 711,596 3,798,104 (142,796) 96.4% Operating Expenses 4,396,432 705,977 3,763,482 (632,950) 85.6% Debt Service 205,500 51,367 205,500 - 100.0%
Capital Outlay - 14,648 14,649 14,649 >100%
Total Public Works 8,542,832 1,483,588 7,781,735 (761,097) 91.1% Community Services
Personnel Services 4,451,900 852,699 4,289,760 (162,140) 96.4% Operating Expenses 2,289,064 684,901 2,289,361 297 100.0% Capital Outlay 11,000 - 11,000 - 100.0%
Total Community Services 6,751,964 1,537,600 6,590,121 (161,843) 97.6% Community Development
Personnel Services 4,114,300 637,901 3,771,577 (342,723) 91.7% Operating Expenses 1,152,500 114,772 1,131,766 (20,734) 98.2% Capital Outlay 200,000 - 201,839 1,839 100.9%
Total Community Development 5,466,800 752,672 5,105,182 (361,618) 93.4% All Other Non-Departmental Activity & Transfers
Capital Projects Fund Transfers 80,000 - 80,000 - 100.0% Internal Service Fund Transfers 6,557,600 - 6,557,600 - 100.0% Facility Replacement Transfer 750,000 - 750,000 - 100.0% City-wide contingency 275,600 - - (275,600) 0.0%
Total Interfund Transfers 7,663,200 - 7,387,600 (275,600) 96.4% Total expenditures 56,640,005 9,586,993 54,612,457 (2,027,548) 96.4% (5,169,839) (3,636,615) (3,117,228) 2,052,611
19,144,895 19,144,895
13,975,056 16,027,667
Estimated Reserve Balance -
June 30, 2026
Deficiency of revenues under
expenditures
Actual Reserve Balance - July
1, 2025
Attachment No. 4
CITY OF EL PASO DE ROBLES
FIRST QUARTERLY FINANCIAL REPORT
Fund Overview - Supplemental Sales Tax Fund
For the Fiscal Year Ending June 30, 2026
REVENUES
Measure J-20 13,303,000 2,098,905 (11,204,095) 15.8%
Measure I-24 6,651,500 1,049,436 (5,602,064) 15.8%
Grants 4,061,952 - (4,061,952) 0.0%
Interest Income 100,000 (152,609) (252,609) -152.6%
Transfers from Other Funds
Gas Tax Fund 1,342,600 - (1,342,600) 0.0%
SB 1 Tax Fund 3,155,800 - (3,155,800) 0.0%
TIF Fund 220,000 - (220,000) 0.0%
Total Revenues 28,834,852 2,995,732 (25,839,120) 10.4%
EXPENDITURES
Police
Personnel Services 5,465,500 1,058,628 4,406,872 19.4%
Operating Expenses 100,000 30,798 69,202 30.8%
Capital Outlay 3,055,646 13,127 3,042,519 0.4%
Total Police 8,621,146 1,102,553 7,518,593 12.8%
Emergency Services
Personnel Services 4,249,900 831,885 3,418,015 19.6%
Operating Expenses 618,500 - 618,500 0.0%
Capital Outlay 4,636,253 594,280 4,041,973 12.8%
Total Emergency Services 9,504,653 1,426,165 8,078,488 15.0% Public Works
Personnel Services 522,000 126,842 395,158 24.3%
Capital Outlay 46,592,781 2,960,254 43,632,527 6.4%
Total Public Works 47,114,781 3,087,096 44,027,685 6.6% Total expenditures 65,240,580 5,615,814 59,624,766 8.6% (36,405,728) (2,620,082) 33,785,646
43,762,673
7,356,945
% Received/
Expended
Deficiency of revenues under
expenditures
Actual Reserve Balance - July 1, 2025
Estimated Reserve Balance - June 30,
2026
Received/
Expended-toDate
Current
Budget
Budget
Variance
Attachment 5
CITY OF EL PASO DE ROBLES
FIRST QUARTERLY FINANCIAL REPORT
Fund Overview - Supplemental Sales Tax Fund
For the Fiscal Year Ending June 30, 2026
CAPITAL PROJECTS
PD019 - Police Substation/Evidence Storage Design 2,324,980 - ES020 - Training Tower 4,241,114 422,401
C0059 - Creston Rd Phase 1 3,813,596 1,871,544
C0084 - 24th St Bridge Rehabilitation 2,025,409 6,766
C0137 - 13th St/Niblick Bridge Deck Resurface 3,271,317 - C0208 - Riverside - 17th to 24th 1,143,880 -
C0209 - Sherwood/Sierra Bonita/Turtle Creek Area 7,569,418 17,553 C0210 - Various Traffic Sign/Striping 121,292 -
C0215 - Sunset/Panorama Street 2,527,674 787
C0221 - Arciero Ct/Mesa Rd 1,403,126 26,643
C0222 - Dallons/Tractor Area 1,843,812 33,387
C0223 - Elm Court, Capitol Hill, Palm Court 281,947 -
C0224 - Golden Hill - Rolling Hills to Creston Rd 348,767 - C0225 - Merry Hill - 15th Street - Terrace Hill 220,890 - C0226 - Serenade/Holstein-Bahama/St Andrews 664,030 39,969 C0231 - Creston Rd Phase 2 10,249,144 81,450
C0234 - Melody Drive 2,940,953 852,664
C0243 - 16th/18th/30th/32nd/36th Vine to Spring 4,005,826 29,491 C0247 - 4 Intersection Ehancements 311,700 -
C0248 - Orchard Bungalow 1,800,000 -
C0249 - West Side (East of Spring)(Zone 2H) 1,950,000 - 53,058,875 3,382,655
Current
Budget
Expended-toDate
Attachment 5
CITY OF EL PASO DE ROBLES
FIRST QUARTERLY FINANCIAL REPORT
Fund Overview - Capital Improvement Program (Active Projects) For the Fiscal Year Ending June 30, 2026
No. Project Description
Project
Budget
Actual
As of 9/30
Actual
Expended-toDate % Expended
C0154 Paso Fiber Connect Project 3,655,447 6,638 3,564,424 97.5% C0174 Pedestrian Enhancements at Flamson 925,000 568,233 841,639 91.0% C0129 Niblick Road Signal Synchronization 300,000 - 220,000 73.3% PW025 Centennial Exterior Stucco Repair 80,000 - 57,712 72.1% C0219 CH/Library Stucco Repair 65,000 - 36,780 56.6%
C0194 Sherwood Park Pickleball Courts 4,091,411 481,093 2,278,073 55.7% C0151 Huer Huero Creek Bridge/Roundabout 3,863,995 - 2,137,481 55.3% PW036 Sherwood Forest Restroom Refresh 7,500 - 3,495 46.6% C0084 24th St Bridge Rehabilitation 3,743,890 6,766 1,725,247 46.1% C0201 DT Parking Lot Improvements 1,909,900 175,297 687,401 36.0% C0258 12th Street Sidewalk Repair 60,000 20,343 20,343 33.9% X0007 Union Rd/Hwy 46-E Overcrossing 6,209,056 22,575 1,963,970 31.6% AS002 Citywide User Fee Study 70,000 - 19,240 27.5%
C0138 Niblick Rd Street Corridor 2,864,598 15,324 728,793 25.4% C0230 Larry Moore Park Redevelopment 851,550 44,404 206,057 24.2% C0180 ADA Transition Plan Setaside 459,457 - 103,646 22.6% PW014 Lubrizol Site Slope Improvements 350,681 5,066 76,889 21.9% C0212 Traffic Signal Safety Enhancements 250,000 47,255 52,917 21.2% C0213 Mill Rd Parallel Route Annexation 1,063,085 6,560 212,797 20.0% PW026 Cent Pool Filtration/Chlorine Replacemen 40,000 - 7,852 19.6% C0207 Highway 46W Roundabouts 3,600,000 72,116 696,869 19.4% C0211 N River Rd Bike/Pedestrian Path 1,703,000 43,205 258,480 15.2% C0099 City Hall Remodel 2,848,118 78,133 359,809 12.6%
PW022 PSC HVAC Boilers, Pumps, Loops 300,000 - 33,702 11.2% X0006 South Vine Bridge/Road Alignment 17,280,445 27,042 1,905,425 11.0% CS008 Library Remodel 233,500 21,058 23,280 10.0%
C0204 City Corporation Yard 15,279,075 80,352 394,631 2.6% PW029 Centennial Pk Gym Walls Repainting 15,000 - 286 1.9% PW032 BSP Concession Stand Countertops 43,600 - 234 0.5% C0245 Chamber and AV Improvements 409,740 - 98 0.0%
C0257 Sherwood Park Light/Turf/Irrigation 3,000,000 - - 0.0% C0261 Myrtlewood Dr Pedestrian Improvement 800,000 - - 0.0% C0262 Riverwalk Lighting Project 460,000 - - 0.0%
C0247 4 Intersection Pedestrian Improve. 311,700 - - 0.0% C0256 Centennial Park BBQ Replacement 270,000 - - 0.0%
C0179 Local Roadway Safety Plan Setaside 138,700 - - 0.0% C0254 Sr Center Roof Replacement 105,000 - - 0.0%
C0220 CH/Library Security/Electronic Keying 100,000 - - 0.0% C0259 Transit Center Bathroom Replacement 100,000 - - 0.0% Attachment 6
CITY OF EL PASO DE ROBLES
FIRST QUARTERLY FINANCIAL REPORT
Fund Overview - Capital Improvement Program (Active Projects) For the Fiscal Year Ending June 30, 2026
No. Project Description
Project
Budget
Actual
As of 9/30
Actual
Expended-toDate % Expended
PW034 BSP Softball Shade Cloth Replacement 85,000 - - 0.0% PW030 Veteran's Center Roof Replacement 75,000 - - 0.0% C0252 Sr Center HVAC Replacement 66,000 - - 0.0%
C0246 Drainage Improvements 23rd & Vine 30,000 - - 0.0% C0253 Sr Center Repaint Exterior 30,000 - - 0.0%
PW037 Robbins Field Backstop Replacement 25,000 - - 0.0% C0255 Transit Center Roof Replacement 22,000 - - 0.0%
PW027 Centennial Wading Pool Replaster 20,000 - - 0.0%
C0251 City Park Restroom Repaint 15,000 - - 0.0%
PW033 BSP Drinking Fountain Replacements 10,000 - - 0.0% PW038 Carnegie Library Exterior Steps Repair 10,000 - - 0.0% C0250 Cent Park Banquet Lighting Control 6,000 - - 0.0% PW023 Veterans/Senior Ctr Monument Sign 2,500 - - 0.0%
Total Capital Projects 78,254,948 1,721,459 18,617,569
Attachment 6