Preliminary Budget Overview
For Fiscal Years 26-27 & 27-28
Fiscal Outlook
Current Challenges
After years of notable growth, our fiscal environment is shifting:
Revenue Plateau
Sales and hotel taxes have flattened
Tourism Softening
Wine industry and visitor revenues are declining.
Higher Borrowing Costs
Cautious consumer spending adds fiscal pressure.
Rising Expenses
Personnel, risk management, and contractual
obligations are growing.
Key Message: Prudent financial planning and disciplined resource allocation are essential.
Economic Resilience Strategy
Looking Beyond Tourism
We are actively diversifying our economy to build long-term fiscal resilience and stability, reducing reliance on any single sector.
Pro-Business Environment
Remove barriers to grow economy.
Spaceport Development
Capitalize on aerospace sector growth.
EDSP Implementation
Countinuing to help businesses start,
expand and grow in Paso Robles
Staffing, Service Levels & Reserves
Personnel Outlook
Despite fiscal constraints, our workforce and service delivery capacity remain stable.
Full Funding for All Positions
All authorized positions will remain fully
funded in the FY 2026–27 budget. No
hiring freeze or layoffs are anticipated.
Stable Core Services
Public safety, public works, parks, and
planning will continue at current service
levels without interruption.
Limited Growth Capacity
Very limited staffing additions and
program expansions. <2 FTEs proposed.
General Fund reserves projected at/above 30 percent
per Council policy
Budget Constraints & Trade-Offs
Decision-Making Reality
With limited revenue growth, every budget decision is critical. This means:
• Adding new programs often delays or reduces other investments. • Every choice has an opportunity cost.
This fundamental reality guides budget discussions.
Careful Prioritization
Ranking requests against needs
and limited resources.
Strong Justification
Clear rationale tied to outcomes
and strategic goals.
Trade-Off Analysis
Understanding gains and losses
with each decision.
Measure I-24
Measure I-24 Overview
Renewed in November 2024, reflecting strong
community support for local infrastructure.
Provides over $6 million annually for local road
maintenance and repair.
Essential for:
• Preserving our street network.
• Addressing deferred maintenance.
• Avoiding costly future reconstruction.
$6M+
Annual Revenue
Dedicated local road
funding
100%
Local Control
Stays in our community
Measure I-24 is a direct investment by
residents in the quality and safety of local
streets and transportation infrastructure.
Measure J-20: Public Safety Funding
A voter-approved 1% local sales tax keeping Paso Robles safer since 2021. 1%
Local Sales Tax
General-purpose, voter-approved
50+
Police & Fire Positions
Funded by Measure J-20
2032
Sunset Date
Early renewal consideration: 2028
Public Safety
Funds police, fire, and
emergency response
Infrastructure
Streets repair and maintenance
Accountability
Citizen oversight committee
ensures transparency
Early renewal in 2028 enables long-term planning for new fire and police facilities on the east and north sides of the city, maintaining all sworn positions without disruption.
Headlines
State Budget Outlook
External Pressures on Local Government
California is confronting significant state budget difficulties that will impact local jurisdictions.
Projected State Deficit
The State faces a multibillion-dollar deficit, with
an estimated $3 billion
shortfall for FY 2026–27 and
a projected $20 billion
deficit for FY 2027-28.
Direct Impact on Local
Funding
State budget decisions
directly affect local funding
streams, including grants,
reimbursements, and
shared revenues. Prepare
for potential reductions.
Need for Prudent Management
This external pressure reinforces the need for conservative revenue projections and prudent reserves management at
the local level.
Proposed Goal Areas
Council Strategic Priorities
1. Transportation & Infrastructure 2. Public Safety
3. Housing & Homelessness 4. Cultural, Recreational & Open Spaces
5. Community & Economic Development 6. Efficient & Effective Governance Key Takeaways
Current Reality
Revenue growth constrained Core services remain stable and Budget is balanced
Strategic prioritization is
essential
The Budget's Role
The budget is the City's primary tool to:
Advance Council vision Maintain fiscal health Invest in Paso Robles’ future General Fund Budget Outlook
$54.06 $55.01
$51.96 $53.08
$-
$10
$20
$30
$40
$50
$60
FYE 27
Proposed
FYE 28
Proposed
MILLIONS
Revenues Expenses
Proposed Budget is Balanced
Cautious Approach
Minimum Reserves Met
“Live Within our Means”
Policy Document
Goal & Visioning Session – May 6, 2026
General Fund Revenue/Expense History
$0
$5
$10
$15
$20
$25
$30
$-
$10
$20
$30
$40
$50
$60
FYE 21 FYE 22 FYE 23 FYE 24 FYE 25 FYE 26 FYE 27
Proposed
FYE 28
Proposed
MillionsMillions
Revenues Expenses Reserves
General Fund Estimated Revenues
Sales Tax
25%
Property Tax
29% TOT
18%
Other
Taxes
7%
Charges for
Services
7%
All Other
14%
$54.1 million – FYE 2027
- 5 10 15 20
PROPERTY TAX
SALES TAX
TOT
OTHER TAXES
CHARGES FOR SERVICES
ALL OTHER
Millions
$55.0 million – FYE 2028
2027 2028
Sales and Use Tax Revenue History
(excludes supplemental sales tax)
$-
$2
$4
$6
$8
$10
$12
$14
$16
$18
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Est.
2028
Est.
Millions
Fiscal year end
Transient Occupancy Tax Revenue History
(Hotel Tax)
$-
$2
$4
$6
$8
$10
$12
$14
$16
$18
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Est.
2028
Est.
Millions
Fiscal year end
Property Tax Revenue History
$-
$2
$4
$6
$8
$10
$12
$14
$16
$18
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Est.
2028
Est.
Millions
Proposed General Fund Operating
Expenditures
- 5 10 15
Police
Public Works
Fire
Community Services
Community Development
City Manger's Office
Admin Services
Millions
By Department
FYE 2027 FYE 2028
71%
29%
<1% 0%
By Type
Personnel Operating Debt Capital
Key Operating Budget Highlights
- 5 10 15
Police
Public Works
Fire
Community Services
Community Development
City Manger's Office
Admin Services
Millions
Expenditures by Department
FYE 2027 FYE 2028
Stakeholder
Funding
Maintained
Parks Master
Plan
Field
Equipment
Replacement
North Spring
St Corridor
Study
Spaceport
License
Housing
Element
Update
-
1.00 2.00
3.00 4.00
5.00 6.00
7.00 8.00
9.00 -
50 100
150
200
250
300
2009 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 History of Employee per Government Function
(excludes utilities)
Public Safety Public Works Community Services
Community Development General Government FTE per 1,000 Residence Propose 1.53 FTE
Increase 2026 to 2027
Other General Fund Expenditures/Transfers
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5
Fleet Central Services
IT Central Services
Risk Mgmt Central Services
Capital Improvement Program
Facility Replacement Fund
Arts in Public Places
Millions
26-27 27-28
Summary of Debt Outstanding
- 5 10 15 20 25 30 35 40
WW Loan
Water Bonds
GO Bonds
WW Bonds
Engergy Savings Loan
Airport Loan
Millions
Pension Liability
June 30, 2024
Plan
Total Accrued
Liability
Market Value
of Assets
Unfunded
Accrued
Liability
Funded
Ratio
Miscellaneous $ 108,647,569 $ 73,685,187 $ 34,962,382 67.8% Police Safety 62,578,697 46,100,874 16,477,823 73.7%
Fire Safety 36,470,972 29,588,761 6,882,211 81.1%
Total City 207,697,238 149,374,822 58,322,416 71.9%
Section 115
Trust - 10,491,434 - -
Net UAL w/ 115 $ 207,697,238 $ 159,866,256 $ 47,830,982 76.97% Estimated Reserves by Fund at 6/30/2026
Fiscal
Prudence
Minimum
City Reserves
Met @ 30%
Retaining Full
Section 115
Trust
No Additional
General Fund
Positions
Live Within - 5 10 15 20 Our Means
Water Fund
General Fund
SST Fund
Section 115 Trust
WW Fund
Fleet Fund
IT Fund
Airport Fund
MILLIONS
Supplemental Sales
Tax Fund
Fiscal Years 2026-2028
Supplemental Sales Tax Fund
$-
$10
$20
$30
$40
$50
$60
FYE 24 FYE 25 FYE 26 FYE 27
Proposed
FYE 28
Proposed
Millions
Revenues Expenses
Intentional spending down
of fund reserves
Continued investment in
Police, Fire, and Street
Maintenance
Road Maintenance Program
$24 million over next 2 years
Measure J-20 Sunsets in
2032
Measure J-20
Police Department
Targeted Public Safety Staffing Adjustments
• Less than 2 FTE’s proposed
• Building ranks: Corporal, Lieutenants. Reduce
Commander position—reinstate in future)
• Part-time Records Technician to Full-time
• 14 of 21 Police Officers on patrol or in field training • 6 recruits in current academy
• 3 recruits anticipated for next academy
• Standards of Cover completed. Next Steps: 5-10 Yr
Strategic Plan
Measure J-20
Fire and Emergency Services
Sustained Investment in Core Emergency Services
• One Vacant Position
• Paramedic Squad deployed
• Fire Training Tower Completed
• ISO Rating Change
• Standards of Cover
• Investment in SLO County EMS Project
• PPE, Hose, Nozzle Replacements
• CAD to CAD
• Paramedic Sponsorships
Road Maintenance Program
Supplemental Sales Tax Measures J-20/I-24
-
5 10
15 20
25 30
35 40
45 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Millions
Creston Road
Phase II (Orchard
to Niblick)
Bridges – Niblick,
13th St, 24th St
Riverside Ave
(17th St to 24th St)
Arciero Ct/Mesa
Rd
Dallons/Tractorarea
16th, 18th, 30th,
32nd, 36th (Spring
to Vine)
Orchard
Bungalow
Neighborhood
Pine & Park St
(14th-24th) Commerce Way
Sherwood
Neighborhood
Combine, Danley,
Germaine,
Oakwood
Capitol Hill
Road Maintenance Program
Supplemental Sales Tax Measures J-20/I-24
-
5 10
15 20
25 30
35 40
45 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Millions
Creston Road
Phase II (Orchard
to Niblick)
Bridges – Niblick,
13th St, 24th St
Riverside Ave
(17th St to 24th St)
Arciero Ct/Mesa
Rd
Dallons/Tractorarea
16th, 18th, 30th,
32nd, 36th (Spring
to Vine)
Orchard
Bungalow
Neighborhood
Pine & Park St
(14th-24th) Commerce Way
Sherwood
Neighborhood
Combine, Danley,
Germaine,
Oakwood
Capitol Hill
Road Maintenance Program
Supplemental Sales Tax Measures J-20/I-24
-
5 10
15 20
25 30
35 40
45 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Millions
Creston Road
Phase II (Orchard
to Niblick)
Bridges – Niblick,
13th St, 24th St
Riverside Ave
(17th St to 24th St)
Arciero Ct/Mesa
Rd
Dallons/Tractorarea
16th, 18th, 30th,
32nd, 36th (Spring
to Vine)
Orchard
Bungalow
Neighborhood
Pine & Park St
(14th-24th) Commerce Way
Sherwood
Neighborhood
Combine, Danley,
Germaine,
Oakwood
Capitol Hill
Road Maintenance Program
Supplemental Sales Tax Measures J-20/I-24
-
5 10
15 20
25 30
35 40
45 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Millions
Creston Road
Phase II (Orchard
to Niblick)
Bridges – Niblick,
13th St, 24th St
Riverside Ave
(17th St to 24th St)
Arciero Ct/Mesa
Rd
Dallons/Tractorarea
16th, 18th, 30th,
32nd, 36th (Spring
to Vine)
Orchard
Bungalow
Neighborhood
Pine & Park St
(14th-24th) Commerce Way
Sherwood
Neighborhood
Combine, Danley,
Germaine,
Oakwood
Capitol Hill
Capital
Improvement
Program
FY 2026-2031
• $1.2 million in upgrades to the Public Safety Center
• $36 million of major infrastructure investment over the next two fiscal years including the 24th Street bridge upgrade and the state-funded Niblick Road Active Transportation Project
• $3.2 million to modernize the City’s library
• $1.4 million in projects that are intended to improve user experiences across the City’s parks and recreation system
City Facility Projects
$0.5
$5.0
$0.9
$3.6
$1.6
$- $2 $4 $6 $8 $10
2031
2030
2029
2028
2027
Millions
• PSC Dispatch Remodel
• Transit Center Bathroom
• Library Remodel
• Centennial Gym Bleachers
• PSC Records/CSO Remodel
• Fire Station No. 2 Remodel
• Centennial Park Security
• Sr/Veteran’s Center Parking Lot
Parks and Recreation Projects
$0.0
$8.0
$0.5
$0.9
$0.5
$- $2 $4 $6 $8 $10
2031
2030
2029
2028
2027
Millions
• Municipal/Centennial Pool
• BSP Walking Path Repairs
• City Park Gazebo/Path Repairs
• BSP Handrail/Signage Replace.
• Robbins Field Bleachers/
Bathroom
• Centennial Park Bathroom
• Larry Moore Park ($8.0 million
unsecured funding FYE 2030)
Stormwater Projects
$1.2
$1.1
$1.2
$0.6
$0.4
$- $2 $4 $6 $8 $10
2031
2030
2029
2028
2027
Millions
• Storm Drain Master Plan Phase II
• 23rd/Vine Street
• 21st Street Green Strip Repairs
• Downtown Drainage (12th St and
Pine)
• North River Road Slope Repair
• Multi-year Approach (i.e., Design
Year 1, Construct Year 2)
Transportation Projects
$71.1
$38.1
$42.9
$23.9
$11.9
$- $20 $40 $60 $80
2031
2030
2029
2028
2027
Millions
• 24th Street Bridge
• 12th Street Sidewalks
• Niblick Road Corridor
• Union Road Undercrossing Study
• 101/46W Roundabouts
• North River Road Bike/Ped Path
• Huer Huero Creek Bridge
• Union Road Overcrossing
Next Steps/Upcoming
Meetings
5 May
2026
Preliminary Review
of General Fund,
Supplemental
Sales Tax Fund,
and Capital
Improvements
6 May
2026
Review of 2026-
2028 Goals and
Priorities
19 May
2026
Preliminary Review
of Enterprise
Funds and related
Capital
Improvements
2 June
2026
Final Approval of
2026-2028 Goals
and Priorities
16 June
2026
Budget Adoption
Questions, Comments,
Concerns
5 May
2026
Preliminary Review
of General Fund,
Supplemental
Sales Tax Fund,
and Capital
Improvements
6 May
2026
Review of 2026-
2028 Goals and
Priorities
19 May
2026
Preliminary Review
of Enterprise
Funds and related
Capital
Improvements
2 June
2026
Final Approval of
2026-2028 Goals
and Priorities
16 June
2026
Budget Adoption