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PISMO BEACH CITY COUNCIL STAFF REPORT
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Agenda Item #9.D
Meeting Date: November 19, 2024
TITLE:
Fiscal Year 2025 First Quarter Financial Status Report
RECOMMENDATION:
No action recommended; for information only.
EXECUTIVE SUMMARY:
This report updates the City Council on the status of Fiscal Year (FY) 2024-25 ending on June 30, 2025, or FY 2025, financial status based on actual revenues and expenditures during the first three months of the fiscal year.
The City of Pismo Beach's financial outlook remains stable, with fund balances projected to be sufficient. The General Fund's unassigned ending balance for FY 2025 is estimated at $4.08 million, which represents a decrease of$3.42 million compared to FY 2024. This reduction is primarily driven by planned expenditures on significant capital projects, including $1.63 million for the Chumash and Palisades Parks Improvements, $1.30 million for the James Way Beautification project, $1.21 million for the Public Safety Facility project, and $1.01 million for the current Paving Project. These investments will draw from the beginning unassigned fund balance.
For most of the City's other funds, revenues and expenditures are projected to be on budget and the ending fund balances are in line with the FY 2025 Adopted Budget beginning fund balances. In all the other funds except the Pier Enterprise Fund, there are sufficient fund balances and projected revenues to cover projected expenditures.
It should be noted that the FY 2024 actual revenues and expenditures are not yet final as staff continues to confirm those amounts in the process of completing the City's FY 2024 financial statements. As such, the FY 2024 projected beginning fund balances in this report are not yet final and may change in future reports to reflect the final minor adjustments.
The following sections provide details of the General Fund financial picture, followed by a summary and highlights of the City's other funds.
I. General Fund Budget Summary
In summary, based on early projections from the first three months of the fiscal year, the General Fund is projected to end FY 2025 with a $4.08 million unassigned fund balance.
The FY 2025 projected $4.08 million unassigned fund balance is $227 thousand greater than the FY 2024 Revised Budget. This increase is attributable to $247 thousand fewer projected operating expenditures compared to the Revised Budget, offset by $20 thousand fewer operating revenues compared to the Revised Budget.
Council Agenda 11-19-2024 9.D-1
The unassigned fund balance is used to pay for future one-time investments included in the FY 2025 budget and in the 10-year Capital Improvement Plan.
In addition to the General Fund unassigned fund balance, the General Fund includes the Budget Stabilization Reserve set-aside of$2.00 million and a CalPERS Pre-Payment set- aside of $1.00 million.
Table 1 is a summary of the FY 2024 preliminary actuals and the FY 2025 General Fund revised budget, projected actuals, and a variance comparing the budget to projected actuals.
Table 1: FY 2025 General Fund Budget Summary
A B C D =C -B
FY 2025 Year-
FY 2025 End Variance
FY 2024 Revised Projected (Actuals-
($thousands) Actuals Budget Actuals Budget)
Unassigned Fund Balance $ 8,469 $ 9,619 $ 9,619 $ - Committed Fund Balance 17,259 15,020 15,020 - a Beginning Fund Balance 25,727 24,639 24,639 - b Operating Revenues 33,877 32,793 32,774 (20) c Operating Expenditures 26,366 32,925 32,678 (247) d =b-c Net Operating Surplus/(Deficit) 7,512 (132) 96 227 e One-time Revenues 445 895 895 - f One-time/Capital Expenditures 8,169 17,770 6,944 (10,826) 9 =
a+d+e-f Ending Fund Balance $ 25,516 $ 7,632 $ 18,685 $ 11,053 Unassigned Fund Balance $ 7,500 $ 3,850 4 0 $ 227 Committed Fund Balance 15,020 - 10,826 10,826 Contribution to Reserves 996 781 781 - Budget Stabilization Set-Aside 2,000 2,000 2,000 - CalPERS Pre-Payment Set-Aside 1,000 1,000 - II. General Fund Beginning Fund Balance
The General Fund beginning fund balance is comprised of two different components:
• The unassigned fund balance, which are funds that are not committed for any specific purpose and could be used for various one-time projects, and • The committed or carryforward fund balance, which are funds that are committed for a specific budgeted use.
As illustrated in Table 2, the FY 2025 Adopted Budget General Fund beginning fund balance was projected to be $10.49 million. Based on changes during FY 2024 and carrying forward fund balance to cover previously budgeted but not-yet-spent expenditures, the preliminary estimated fund balance is revised to $24.64 million. This Council Agenda 11-19-2024 9.D-2
includes $9.62 million of unassigned fund balance and $15.02 million of carryforward fund balances.
Table 2: FY 2025 General Fund, Beginning Fund Balance
(Preliminary Estimate)
Adopted Budget
($ thousands) Budget Revisions Actuals
Unassigned Fund Balance $ 10,493 $ (874) $ 9,619 Capital Funds Carryforward 13,930 13,930
5,020
Purchase Orders Carryforward 1,036 1,036 $Prepayment Carryforward 54 54 Carryfoyfo rward Total Fund Balance $10,493 $ 14,146 $ 24,639
III. General Fund Reserve
The City maintains various General Fund reserves totaling $8.20 million for emergency operations, building depreciation, and risk management. These reserves are crucial in order to avoid disrupting the City's operations following unanticipated events. The reserves are shown in Table 3, followed by a summary of each reserve.
Table 3: General Fund Reserves
Reserve Amount $ thousands
General Fund 25% Reserve $7,450
City Building Reserve 500
Risk Management Reserve 250
Total $8,200
General Fund 25% Reserve
The City has adopted a fiscal policy to fund a General Fund Reserve of 25% of General Fund budgeted annual operating expenditures for FY 2025. The General Fund reserve should be equal to $8.23 million, which is 25% of the total FY 2025 budgeted annual operating expenditures of $32.93 million. Currently, the General Fund Reserve is $7.45 million, of which $6.38 million is invested in various securities and $1.07 million is pending investment. This reserve allows the City to maintain its operations for a few months in the event that an emergency or disaster impacts the City's finances, and can also be used for emerging opportunities. The City Treasurer will be investing an additional $781 thousand during FY 2025 to fully fund the General Fund Reserve.
City Building Reserve
The City Council created a City Building Reserve of $500 thousand, for the maintenance and upkeep of City facilities and buildings, particularly if funds are not available. This amount is equal to five years of annual depreciation on City-owned buildings.
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Risk Management Reserve
The City Council established a Risk Management Reserve, contributing $50 thousand each year to the budget for unanticipated risk management costs. This reserve has a balance of$250 thousand, which is the maximum contribution level.
IV. General Fund Revenues
The FY 2025 Revised Budget projects total revenues of $33.69 million, with actual revenues anticipated to reach $33.67 million-$20 thousand less than budgeted.
Compared to FY 2024, the FY 2025 projected actual revenues are expected to decrease by $654 thousand, or 1.9%. This decline is primarily attributed to anticipated reductions in various revenue streams, including Other Revenues and Departmental Revenues.
Table 4 provides a summary of the General Fund revenue budget alongside the projected actual revenues for FY 2025. This is followed by a detailed analysis of the top three revenue sources for FY 2025, as well as a discussion on significant variances between FY 2025 projected revenues and FY 2024 actual figures.
Table 4: FY 2025 General Fund Revenue Budget and Projected Actuals A B C D=C-B E=C-A F=C/A-1
Variance %
(Projected Variance Variance Proj
FY 2025 FY 2025 Actuals- (FY25 Proj (FY25 Proj Actual ($thousands) FY 2024 Revised Projected Revised Act-FY24 Act v FY24 % of Revenue Category Actuals Budget Actuals Bdgt) Actuals) Actuals) Total Transient Occupancy Tax $ 15,083 $ 15,085 $ 15,002 $ (83) $ (81) -0.5% 44.6% Property-Related Taxes 7,424 7,275 7,275 - (150) -2.0% 21.6% Sales and Use Tax 3,861 4,001 4,001 - 140 3.6% 11.9% Other Revenues 3,546 2,630 2,672 42 (874) -24.7% 7.9% Permits 1,362 1,285 1,178 (107) (184) -13.5% 3.5% Departmental Revenues 948 264 264 - (684) -72.1% 0.8% Franchise Taxes 812 709 812 103 - 0.0% 2.4% Business Tax 282 247 282 36 - 0.0% 0.8% Transfers In 140 975 975 - 835 596.4% 2.9% Other Taxes 131 141 131 (10) - 0.0% 0.4% Intergovernmental Revenue 102 71 71 - (31) -30.1% 0.2% Grants 97 28 28 - (69) -71.1% 0.1% Other Financing Sources 90 83 83 - (7) 0.0% 0.2% Total Operating Revenues $33,877 $32,793 $ 32,774 $ (20) $ (1,103) -3.3% 97.3% One-time Revenues 445 895 895 - 450 101.0% 2.7% Total Revenues $34,323 $33,688 $ 33,669 $ (20) $ (654) -1.9% 100.0% • Transient Occupancy Tax (TOT) revenues are projected to fall $83 thousand short of the budget and $81 thousand, or 0.5%, below the previous year's revenues. TOT revenues are collected from an 11% tax on rent charged by lodging businesses for stays of 30 consecutive days or less. The projected decline in TOT revenues reflects an overall trend: a 2.4% decrease in the first three months of the fiscal year, offset slightly by a projected 0.7% increase for the remainder of FY 2025 compared to FY 2024. Staff anticipates a gradual rise in TOT revenues, driven by steady occupancy Council Agenda 11-19-2024 9.D-4
rates and modest room rate growth. Chart 1 further illustrates FY 2025 TOT revenues collected in comparison to FY 2024.
Chart 1. TOT Revenues FY 2025 compared to FY 2024
$2,500,000
$2,000,000
.r
c $1,500,000
E
Q FY 2024
0 $1,000,000 FY 2025
$500,000
KIP
According to data from Smith Travel Research Inc., a competitive benchmarking and research provider for the hotel industry, the slight overall decline in TOT revenues is due to a drop in the average daily room rate, even as occupancy rates have shown moderate growth. Specifically, the average daily rate decreased by 2.1% in the first quarter of FY 2025 compared to the same period in FY 2024, while occupancy rates increased by 2.2%.
Based on these trends, staff projects that TOT revenues will reach $15.00 million, representing an $83 thousand shortfall from the budgeted amount, and a 0.5% decrease, or $81 thousand decrease, from the previous year's TOT revenues. • Property-related tax revenues are projected to be equal to budget and$150 thousand, or 2.0%, less than previous year's property-related tax revenues. There are two sources of property-related tax revenues:
o Property Tax Assessed Value revenues: equivalent to 1% of assessed values. o Property Tax In-Lieu of Vehicle License Fees: 1% tax on the market value of a registered vehicle.
Assessed value cannot increase by more than 2.0% per year per Section 2 of Article XIIIA of the California Constitution. The property tax projected actuals are based on San Luis Obispo County Auditor-Controller's office certified assessed values for the current year.
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• Sales and Use Tax revenues are projected to be equal to budget and $140 thousand, or 3.6%, greater than the prior year. Sales and use tax revenues are made up of two sources:
o Bradley-Burns uniform sales and use tax, which is a 1.0% tax on taxable sales within the City.
o Public safety tax, which is a 0.5% tax on taxable sales for specified public safety purposes.
Based on actual sales tax receipts to date, the Bradley-Burns Uniform Sales and Use Tax is projected to meet budget expectations and exceed the prior year's revenues by $140 thousand. Using data from the City's sales tax consultant and actual revenues collected so far, City staff estimates that Bradley-Burns sales and use tax revenues will total $3.88 million. Recent reductions in the Federal Funds rate suggest that inflation is nearing target levels; however, the labor market has shown signs of weakening over the past few months. As a result, consumer spending is expected to decline, with households prioritizing essential expenses—such as utilities, insurance, and food—over non-essential and discretionary items. Chart 2 illustrates sales tax revenues received in FY 2024 and FY 2025 by the month in which the sales tax was collected.
Chart 2. Bradley Burns Sales Tax Revenues FY 2025 compared to FY 2024 $500,000
$450,000
c
$400,000
o $350,000
Q $300,000
x $250,000
N $200,000 FY 2025
$150,000 FY 2024
In $100,000 —
$50,000
$-
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The public safety sales tax revenues are budgeted at $126 thousand in FY 2025 and are anticipated to be equal to budget. This FY 2025 projected amount is $4 thousand less than the FY 2024 public safety sales tax revenues.
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In summary, sales and use tax revenues are projected to be equal to budget and $140 thousand, or 3.6%, greater than the prior year.
• Other Revenues are projected to come in $42 thousand above budget but $874 thousand, or 24.7%, lower than the previous year. This category includes fines and forfeitures, interest earnings, rents and leases, various service fees, and other miscellaneous revenue sources. The anticipated decline is primarily due to a one-time $400 thousand legal settlement received in FY 2024, which will not be repeated in FY 2025. Additionally, projected interest earnings are expected to decrease by $390 thousand, a result of both lower interest rates and adjustments to the investment portfolio. These adjustments, which involve shifting to longer-term securities with lower immediate returns, are intended to secure higher interest rates over the long term.
• Departmental Revenues are projected to be equal to budget and $684 thousand, or
72.1%, less than the prior year. This is largely due to the City of Pismo Beach no longer providing Dispatch services for the City of Grover Beach, reducing both Departmental revenues by $620 thousand and corresponding personnel expenditures.
• Transfers In are projected to be equal to budget and $835 thousand, or 596.4%, greater than the prior year. This additional $835 thousand includes the start of several ongoing contributions from other funds to support General Fund expenditures, including:
o $600 thousand transfer in from the Parking Enterprise Fund to support the Public Safety Facility bonds debt service payments,
o $65 thousand transfer in from the Parking Enterprise Fund to support concrete and asphalt repairs of$50 thousand and beautification of$15 thousand, o $50 thousand transfer in from the Lodging Business Improvement District Fund for physical improvements (LBID2) for beautification,
o $50 thousand transfer in from the LBID2 for Christmas decorations, and o $70 thousand one-time transfer in from the LBID2 to purchase Christmas decorations.
V. General Fund Expenditures
The FY 2025 Revised Budget expenditures total $50.70 million and projected actual expenditures total $39.62 million. Operating expenditures are projected to be $247 thousand less than the Revised Budget based on first quarter expenditures. One-time capital costs are projected to be $10.83 million less than budget largely attributable to the timing of cash flow for the Public Safety Facility project and the Ventana Sports Courts project that are anticipated to continue beyond FY 2025. These savings will be carried forward to next fiscal year and do not contribute to an increase in fund balance.
Council Agenda 11-19-2024 9.D-7
Total operating expenditures for the first quarter total should be about 25% of the budget, assuming the timing of expenditures is consistent throughout the year. This year, about 22% of the operating budget has been spent in the first quarter, while only 1% of the one- time capital expenditure budget has been spent in the first quarter. These one-time costs are dependent on the timing of construction of these projects. Table 5 provides details of actuals as a percentage of budget by expenditure category, followed by explanations of the large variances from the 25% mark.
Table 5. FY 2025 General Fund Expenditure Budget and Projected Actuals A B C D=CIB E F=B-E
Variance
FY 2025 (Revised Proj
FY 2025 First First Quarter FY 2025 Bdgt- Actual ($thousands) FY 2024 Revised Quarter Actuals% of Projected Projected % of Expenditure Category Actuals Budget Actuals Budget Actuals Actuals) Total Salaries&Wages $ 9,011 $10,140 $ 2,361 23% $ 9,912 $ 227 25.0% Benefits 5,141 5,647 2,411 43% 5,655 (8) 14.3% Professional Services 4,630 5,269 224 4% 5,269 - 13.3% Contract Services 3,069 4,007 1,314 33% 4,007 - 10.1% Operations&Maintenance 1,572 2,051 355 17% 2,051 - 5.2% Debt Service 428 1,954 - 0% 1,954 - 4.9% Other Expenses 1,363 1,615 330 20% 1,615 - 4.1% Other Financing Uses 122 1,124 168 15% 1,124 - 2.8% Transfers Out 713 830 155 19% 802 28 2.0% Retiree Medical Insurance 182 265 40 0% 265 - 0.7% Capital Projects 133 23 6 0% 23 - 0.1% Total Operating Expenditures $26,366 $32,925 $ 7,364 22% $ 32,678 $ 247 82.5% One-time Capital Costs 8,169 17,770 205 1% 6,944 10,826 17.5% Total Expenditures $34,534 $50,695 $ 7,569 15% $ 39,622 $ 11,072 100.0% Some operating costs that do not reflect consistent monthly spending include:
• Benefits, which includes retirement, health, and other benefits for employees. In order to take advantage of a 3% savings in CalPERS pension costs, the City prepaid the full year of its projected normal CalPERS pension costs. As such, the Benefits expenditure category reflects that 43% of the budget was spent in the first quarter. • Professional Services, which reflects that 4% was spent in the first quarter. These costs are based on the timing of work performed and are not set amounts per month. • Contract Services, which reflects that 33% was spent in the first quarter. These costs reflect the prepayment of insurance costs in the first quarter. • Debt Service, which reflects that 0% was spent in the first quarter. Debt service payments are due in December and June each year and do not follow a consistent monthly draw.
• Other Financing Uses, which includes a $1.00 million general contingency budget and reflects that only 15% of the budget has been spent in the first quarter. This budget is Council Agenda 11-19-2024 9.D-8
allocated over time based on unanticipated costs that come up throughout the year and are not a consistent allocation of expenditures.
• Retiree Medical Insurance costs, which reflects that 0% of budget was spent in the first quarter. The monthly costs are payments to Retirees, but the majority of these payments are contributions to CaIPERS for the actuarially determined contribution and are paid toward the end of the fiscal year.
VI. General Fund Contingency Budgets
General Contingency
The FY 2025 Adopted Budget included $1.00 million in the General Fund general contingency account that may be used for various one-time items that come up during the year. Of this amount, $95 thousand of this appropriation was allocated for Police License Plate Reader cameras and event funding, leaving $905 thousand remaining.
Council Contingency
The FY 2025 Adopted Budget also includes a $5 thousand City Council contingency appropriation that may be used for various one-time items that come up during the year.
None of this contingency has been allocated in the first quarter of FY 2025.
VII. Next Level Budget
The FY 2025 Adopted Budget includes $400 thousand in the General Fund non- department contract services account that may be used for various "next-level" contract services. Of this amount, $57 thousand of this appropriation was allocated, leaving $343 thousand remaining. Details of the allocation are provided in Table 6.
Table 6. FY 2025 Next-Level Budget
Beginning Balance July 1, 2024 $ 400,000
Appropriations
Building Maintenance Janitorial Services (57,202) Total Appropriations (57,202)
Ending Balance as of September 30, 2024 $ 342,798 Council Agenda 11-19-2024 9.D-9
VIII. Other Funds
Table 7 reflects fund balance, projected revenue, and projected expenditure activity in the City's other funds. For most funds, revenues and expenditures are projected to be on budget and the ending fund balances are in line with the FY 2025 Adopted Budget beginning fund balances.
Table 7. Other Funds
A B C D=B-C E=A+D F G=E-F
Projected Projected
Fund Beginning Actual Projected Actual Ending Fund Unrestricted Type Fund Fund Title Fund Balance Revenue Expenditure Net Rev-Exp Balance Carryforward Fund Balance General Operating Funds
1001 General Fund 24,638,529 33,668,857 39,622,457 (5,953,600) 18,684,929 10,825,555 7,077,896 1002 Half-Cent Sales Tax Fund 3,745,497 2,018,396 796,667 1,221,729 4,967,226 3,102,333 1,864,893 Special Revenue Funds
2001 Gas Tax Fund 273,055 439,829 142,289 297,540 570,595 150,000 420,595 2002 Local Transportation 347,170 278,240 5,609 272,631 619,801 - 619,801 2003 PEG Fund 112,323 40,187 41,849 (1,662) 110,661 110,661 2004 Grants-NonCapital 91,344 151,911 150,916 995 92,339 - 92,339 2005 Housing In-Lieu Fee 4,137,796 41,162 165,637 (124,475) 4,013,321 1,000,000 3,013,321 2006 LBID Operations 707,373 1,372,359 1,646,703 (274,345) 433,028 - 433,028 2006 LBID Improvements 1,909,004 1,372,359 1,170,425 201,934 2,110,938 2,110,938 2007 Chapman Estate 37,464 117,684 154,216 (36,532) 932 932 Capital Project Funds
3001 Capital Projects 2,689,980 22,729,399 22,729,399 2,689,980 2,689,980 - 3002 Public Facilities Fund 896 - - 896 - 896 3003 Park Development Fund 370,815 11,900 138,817 (126,917) 243,898 242,193 1,705 3101 Circulation Fees 566,054 11,590 166,071 (154,481) 411,573 - 411,573 3102 Impact Fees 391,684 12,345 46,914 (34,569) 357,115 357,115 3103 Developer Impact Fee 58,651 - - 58,651 58,651 3201 Underground Utility Fnd 16,869 16,869 16,869 Debt Service Funds
4001 PFADebtService - - - - -
4002 PF Agency Debt 637 2,229,100 2,229,100 637 637 4101 Reass 92-1 Fwy Fthlls 781 - - 781 781 4102 Spyglass 92-4 12,994 - - 12,994 12,994 Enterprise Funds
6101 Water Enterprise 9,320,102 7,521,382 12,257,946 (4,736,564) 4,583,538 4,583,538 - 6102 Water Tax(Lopez/State) 257,476 2,365,761 2,439,365 (73,604) 183,872 183,872 6103 Water Construction Fund 1,527,284 5,932,759 5,983,496 (50,738) 1,476,546 1,476,546 6104 Water Expansion Fund 955,038 8,697 - 8,697 963,73S 963,73S 6105 Water Central Coast Blue 31,450 3,390 26,400 (23,010) 8,440 8,440 Water Enterprise Funds 12,091,351 F 15,831,988 F 20,707,207 F (4,875,219)'F 7,216,131 r 7,216,131 F 6201 Wastewater Treatment 5,663,412 5,675,613 10,048,308 (4,372,695) 1,290,716 1,290,716 6202 Wastewater Capital Proj 1,815,769 2,501,302 2,666,369 (165,067) 1,650,702 1,650,702 6203 Wastewater Expansion 2,141,284 34,290 - 34,290 2,175,574 2,175,574 6204 Wastewater Central Coast 63,853 6,882 53,600 (46,718) 17,135 17,135 Wastewater Enterprise Fuj 9,684,318 r 8,218,087 F 12,768,277 (4,550,190)� 5,134,127 5,134,127 F 6301 Local Trans Transit - - - - -
6401 Pier Enterprise - 117,665 163,042 (45,377) (45,377) (45,377) 6501 Parking Enterprise 3,713,836 3,538,270 2,323,200 1,215,070 4,928,906 4,928,906 Internal Service Funds
7101 Technology Service Fund 59,512 2,155,963 2,203,236 (47,273) 12,239 - 12,239 7201 Motor Vehicle Fund 5,155,518 1,430,228 3,907,275 (2,477,047) 2,678,471 - 2,678,471 Council Agenda 11-19-2024 9.D-10
Highlights of Other Funds
Half-Cent Sales Tax Fund (1002)
The Half-Cent Sales Tax Fund is part of the General Fund which includes a 0.50% transaction sales and use tax. This tax was approved by Pismo Beach voters in June 2008, effective October 1, 2008, and renewed in November 2014, which extends the tax to March 31, 2027. At the writing of this report, it is expected that the November 5, 2024 City of Pismo Beach Ballot Measure F-24 will be approved by the voters to replace the
0.50% transaction sales and use tax with a 1.0% transaction sales and use tax on April 1, 2025. This measure is expected to sunset on March 31, 2037. The tax proceeds are used exclusively for infrastructure projects. This fund started the year with a $3.75 million beginning fund balance (after including carryforward fund balances). Projected actual revenues are $2.02 million. Projected actual expenditures are $0.80 million. After accounting for a $3.10 million carryforward of project budgets, there is a $1.86 million projected ending fund balance in this fund. Table 8 lists the budgeted projects and projected actuals in this fund for FY 2025.
Table 8: Half-Cent Sales Tax Fund FY 2025 Budgeted Projects and Projected Actuals FY 2025 FY 2025 Projected
Projects Budget Actuals
FY2025 Paving project $ 2,300,000 $ -
Ventana Sports Courts 1,000,000 736,667
Signalize Bello/Price Canyon Rd 489,000 -
EI Portal Outfall 60,000 60,000
Dolliver/Pomeroy Ped Scramble 50,000 -
Total $ 3,899,000 $ 796,667
Gas Tax Fund (2001)
The Gas Tax Fund is a Special Revenue Fund whose revenues include State gas tax funds based on the State's apportionment formula. These funds are used for City street light costs, City traffic signal maintenance costs, and street repairs and/or capital improvements. This fund started the year with a $273 thousand beginning fund balance (after including carryforward fund balances). Projected actual revenues are $440 thousand and projected actual expenditures are $142 thousand for the streets and overhead costs. Based on the projected revenues and expenditures for the current year, after accounting for a $150 thousand carryforward of the Signalize Bello/Price Canyon Road project, there is a $421 thousand projected ending fund balance in this fund.
Local Transportation Fund (2002)
The Local Transportation Fund is a Special Revenue Fund whose funds are used for construction and maintenance of streets, bluff protection, and beach access. Revenues for this fund consist of State Transportation Development Act funds, which remain after funds are allocated for regional transit, local transit, and Ride-on services. Projected actual revenues are $278 thousand and projected actual expenditures are $6 thousand.
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Based on the projected revenues and expenditures for the current year, there is $617 thousand projected ending fund balance for this fund.
Public Education Government Fund (2003)
The Public, Educational, and Governmental (PEG) Access Fee Fund includes revenues from a PEG Access Fee collected from cable television providers (i.e. Charter Communications)with franchise operations within city limits. Expenditures include capital costs related to governmental cable broadcasting and equipment. Based on projected revenues of$40 thousand and projected expenditures of$42 thousand, the PEG Fund is expected to end the year with a $111 thousand fund balance.
Housing In-Lieu Fund (2005)
The Housing In-Lieu Fund is a Special Revenue Fund with revenues from a development impact fee paid to the City as an alternative to the production of affordable housing (housing in-lieu fee). These funds are used for the acquisition, construction, or rehabilitation of affordable housing. The fund is projected to have $3.01 million of funds available by the end of the year for this purpose.
Lodging Business Improvement District Fund (2006) Operations The Pismo Beach Lodging Business Improvement District (LBID) Fund for operations reflects a 1% assessment on transient rents at transient lodging providers as revenues and budgeted expenditures to promote Pismo Beach lodging businesses. The LBID Fund started the year with a $707 thousand beginning fund balance. City staff projects that LBID assessment revenues and interest earnings will be $1.37 million. Operating expenditures are projected at $1.65 million. The fund is expected to end the year with a $433 thousand unrestricted fund balance.
LBID Fund (2006) Improvements
The LBID Fund for improvements includes a 1% assessment for physical improvements, in particular the Pier Plaza project. The LBID Fund started the year with a $1.91 thousand beginning fund balance. City staff projects that LBID assessment revenues and interest earnings will be $1.37 million. Expenditures include $1.17 million for various projects as listed in Table 9 below. The fund is expected to end the year with a $1.05 million unrestricted fund balance. This amount, plus FY 2025 projected assessment revenues are anticipated to support future visitor-serving physical improvements.
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Table 9: LBID2 Fund FY 2025 Budgeted Projects and Projected Actuals FY 2025 FY 2025 Projected
LBID2 Improvements Budget Actuals
Addie Street Restroom Improvements $1 ,200,000 $ 480,000 Street and Pier Plaza Sweeper 245,425 245,425
Christmas Decor 120,000 120,000
Butterfly Grove Parking Crosswalk Design 100,000 100,000 Butterfly Grove Trail Signage 50,000 50,000
Special Events and Festival Seed Funding 50,000 50,000 Beautification 50,000 50,000
Pismo Beach Information Center 50,000 50,000
Stewardship Banner Program 25,000 25,000
Total $1,890,425 $ 1,170,425
Chapman Estate Fund (2007)
The Chapman Estate Fund reflects donations or other contributions for the Chapman Estate as revenues and ongoing maintenance and one-time infrastructure improvements to the Chapman Estate as expenditures. The fund started the year with $37 thousand and is expected to receive $118 thousand of revenues, including $72 thousand from the General Fund to support operations, $24 thousand for the Chapman Inventory project, $13 thousand for the Chapman Estate condition assessment project, and $8 thousand from private event revenues. Projected actual expenditures are $154 thousand, largely for operating costs of the home and grounds and monthly maintenance costs for utilities and gardening. The remaining projected ending balance of this fund is $932.
Park Development Fund (3003)
The Park Development Fund is a Capital Project Fund with Quimby Act (park development in-lieu) fees and Impact Fees as funding sources to support construction costs of new parks and park lands, and the enhancement of existing parks to serve new development. The fund started the year with $371 thousand and is projected to receive $12 thousand in impact fee and permit revenues. Projected actual expenditures total $139 thousand and include the projects shown in Table 10. The table lists the budgeted projects in this fund for FY 2025.
Table 10: Park Development Fund FY 2025 Budgeted Projects FY 2025
Projects Budget
South Palisades Outdoor fitness equipment/trail $ 160,000 Ventana Sports Courts 130,000
Price Historic Park/ Meherin House 85,029
Overhead costs 5,437
Total $ 380,466
Council Agenda 11-19-2024 9.D-13
After accounting for carryforward budgets to next fiscal year, the fund is expected to end the year with a $2 thousand ending fund balance.
Water Enterprise Fund (6101)
The Water Enterprise Fund is an Enterprise Fund consisting of revenues from water billings and expenditures for: contract meter reading; direct water services and supplies; on-going inspection, repair, and maintenance of the City's wells, tanks, booster stations, hydro-pneumatic system, and water distribution system components; water conservation efforts; and ensuring that a safe, drinkable supply of water is provided to Pismo Beach.
Water revenues are projected to be $7.52 million and expenditures are projected to be $12.26 million.
The projected ending fund balance for the Water Enterprise Fund is $4.58 million, which is allocated for future water system capital costs, including the Central Coast Blue project.
Note that the Water Enterprise Fund also includes the Water Tax, Water Construction, Water Expansion, and the Central Coast Blue Regional Recycled Water Authority Water Funds and the ending fund balance across all these funds is $7.22 million.
Wastewater Treatment Fund (6201)
The Wastewater Treatment Fund is an Enterprise Fund consisting of revenues from wastewater billings and expenditures for direct services and supplies; operation and maintenance of the City's wastewater treatment plant and the wastewater collection facilities including pumps and pipelines; and ensuring the City's treatment and collection system operations meet City, federal, and state laws and requirements. Wastewater revenues are projected to be $5.68 million and expenditures are projected to be $10.05 million. The estimated ending fund balance is $1.29 million which is already allocated for other wastewater capital projects. Note that the Wastewater Treatment Funds also include the Wastewater Capital Fund, the Wastewater Expansion Fund, and the Central Coast Blue Regional Recycled Water Authority Wastewater Fund. The total combined ending fund balance across all these funds is $5.13 million.
Pier Enterprise Fund (6401)
The Pier Enterprise Fund includes revenues from a concession lease on the Pier and expenditures for repair and maintenance of the Pier, Promenade, and nearby facilities.
Projected revenues are $118 thousand, from revenues from the Pier Airstreams.
Projected expenditures include $163 thousand for Pier and Pier Plaza operating costs.
The Pier Enterprise Fund is expected to end the year with a shortfall of a $45 thousand ending fund balance. Staff will come to Council at the Mid-Year Budget in December to appropriate additional General Fund support for these operations.
Parking Enterprise Fund (6501)
The Parking Enterprise Fund is an Enterprise Fund consisting of revenues from parking kiosks, parking citations, and parking permits to support a Parking Supervisor and Parking Enforcement Officer, implement the goals of the Pismo Beach Parking Management Plan, to administer existing parking more efficiently, provide more downtown parking, improve enforcement and parking management, and provide funds for future parking structures.
Council Agenda 11-19-2024 9.D-14
Revenues are projected to reach $3.54 million and operating expenditures are projected to be $1.75 million. As shown in Table 11, addition to operating expenditures, the budget includes $573 thousand for one-time projects. Of these projects, staff projects the full $573 thousand will be spent in FY 2025. The FY 2025 projected ending fund balance is $4.93 million.
Table 11: Parking Enterprise Fund FY 2025 Budgeted Projects FY 2025 FY 2025 Projected
Projects Budget Actuals
Public Safety Facility $ 300,000 $ 300,000 Police Dept/Parking Substation 171,500 171,500 Addie St Parking & Access Impr 62,588 62,588
Parking Kiosk Machines 31,477 31,477
Radio System Reliability Upgrd 4,000 4,000
Other projects 3,855 3,855
Total $ 573,420 $ 573,420
Motor Vehicle Replacement Fund (7201)
The Motor Vehicle Replacement (MVR) Fund is an Internal Service Fund that funds the City's motor vehicle operations and maintenance and motor vehicle replacements for various City departments. These costs are funded by accumulated fund balance, transfers from other funds, and motor vehicle rental charges to other funds. The MVR Fund started the year with a $5.16 million beginning fund balance. The FY 2025 projected ending fund balance is $2.68 million, which are accumulated funds necessary to fund future replacements.
Conclusion and Recommendation
Staff recommends that Council receive this report as information only.
FISCAL IMPACT:
There is no fiscal impact from receiving this report as it is information only.
ATTACHMENTS:
None
Submitted by: Nadia Feeser, Administrative Services Director City Manager Approval:
Council Agenda 11-19-2024 9.D-15