PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.D
Meeting Date: May 6, 2025
TITLE:
Fiscal Year 2025 Third 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 nine 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 $8.49 million, which represents an increase of $0.99 million compared to FY 2024. This increase is primarily driven by a projected $2.24 million in net operating surplus, offset by several capital projects that will draw from the fund balance. These capital projects include $2.51 million for the current Paving project, $0.97 million for the James Way Beautification project, and $490 thousand for the Ventana Sports Courts project.
For 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 ending fund balances. In all the other funds, there are sufficient fund balances and projected revenues to cover projected expenditures.
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 nine months of the fiscal year, the General Fund is projected to end FY 2025 with an $8.49 million unassigned fund balance.
The FY 2025 projected $8.49 million ending unassigned fund balance is $2.11 million greater than the FY 2025 Revised Budget ending unassigned fund balance. This increase is attributable to $1.13 million fewer projected operating expenditures compared to the Revised Budget, $1.06 million more operating revenues compared to the Revised Budget, offset by $76 thousand fewer one-time revenues compared to the Revised Budget.
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.
Council Agenda 5-6-2025 9.D-1
Table 1 is a summary of the FY 2024 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
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 actual beginning fund balance is $24.64 million. This includes $9.62 million of unassigned fund balance and $15.02 million of carryforward fund balances.
A B C D = C - B
($ thousands)
FY 2024
Actuals
FY 2025
Revised
Budget
FY 2025 Year-
End Projected
Actuals
Variance
(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 32,905 33,963 1,058 c Operating Expenditures 26,366 32,848 31,721 (1,127) d = b - c Net Operating Surplus/(Deficit) 7,512 57 2,243 2,186 e One-time Revenues 445 960 883 (76) f One-time/Capital Expenditures 8,169 16,718 6,465 (10,253) g = a+d+e-f Ending Fund Balance 25,516$ 8,937$ 21,299$ 12,362$ Unassigned Fund Balance 7,500$ 6,385$ 8,494$ 2,109$ Committed Fund Balance 15,020 - 10,253 10,253 Contribution to Reserves 996 552 552 - Budget Stabilization Set-Aside 2,000 2,000 2,000 - Council Agenda 5-6-2025 9.D-2
Table 2: FY 2025 General Fund, Beginning Fund Balance
III. General Fund Reserve
The City maintains various General Fund reserves totaling $8.95 million for emergency operations, building depreciation, and risk management. These reserves are crucial in order to avoid disrupting the City’s operations following unanticipated events. The reserves are shown in Table 3, followed by a summary of each reserve.
Table 3: General Fund Reserves
Reserve Amount ($ thousands)
General Fund 25% Reserve $8,202
City Building Reserve 500
Risk Management Reserve 250
Total $8,952
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 $8.21 million, which is 25% of the total FY 2025 budgeted annual operating expenditures of $32.85 million. Currently, the General Fund Reserve is $8.20 million. 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 $10 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.
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 $250 thousand, which is the maximum contribution level. ($ thousands)
Adopted
Budget
Budget
Revisions Actuals
Unassigned Fund Balance 10,493$ (874)$ 9,619$
Capital Funds Carryforward 13,930 13,930
Purchase Orders Carryforward 1,036 1,036
Prepayment Carryforward 54 54
Total Fund Balance 10,493$ 14,146$ 24,639$
$15,020
Carryforward
Council Agenda 5-6-2025 9.D-3
IV. General Fund Revenues
The FY 2025 Revised Budget projects total revenues of $33.87 million, with actual revenues anticipated to reach $34.85 million—$982 thousand greater than budgeted.
Compared to FY 2024, the FY 2025 projected actual revenues are expected to increase by $524 thousand, or 1.5%. This year-over-year increase is largely attributed to $986 thousand of transfers in from other funds to support various costs, such as the Public Safety Facility debt service, Christmas decorations, beautification, and concrete and asphalt repairs. 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
• Transient Occupancy Tax (TOT) revenues are projected to be $99 thousand greater than the budget and $66 thousand, or 0.4%, below the previous year’s revenues. TOT revenues are collected from an 11% tax on rent charged by lodging businesses for stays of 30 consecutive days or less. The projected year-over-year decline in TOT revenues reflects a 0.7% increase in the first eight months of the fiscal year, followed by a projected 0.5% increase for the remainder of FY 2025 compared to FY 2024.
Looking at the last four months of the fiscal year, staff anticipates a 7.0% decline in TOT revenues in March and a 6.0% increase in April (due to the shift of spring break A B C D = C - B E = C - A F = C /A-1
($ thousands)
Revenue Category
FY 2024
Actuals
FY 2025
Revised
Budget
FY 2025
Projected
Actuals
Variance
(Projected
Actuals -
Revised
Bdgt)
Variance
(FY25 Proj
Act - FY24
Actuals)
% Variance
(FY25 Proj
Act v FY24
Actuals)
Proj
Actual
% of
Total
Transient Occupancy Tax 15,083$ 14,919$ 15,018$ 99$ (66)$ -0.4% 43.1% Property-Related Taxes 7,424 7,375 7,501 127 77 1.0% 21.5% Sales and Use Tax 3,861 4,001 3,906 (95) 45 1.2% 11.2% Other Revenues 3,546 2,657 3,697 1,040 151 4.3% 10.6% Permits 1,362 1,285 996 (289) (366) -26.9% 2.9% Transfers In 140 1,126 1,126 - 986 704.0% 3.2% Franchise Taxes 812 709 785 75 (28) -3.4% 2.3% Departmental Revenues 948 264 285 21 (663) -69.9% 0.8% Business Tax 282 247 288 41 6 2.0% 0.8% Other Taxes 131 141 127 (13) (3) 0.0% 0.4% Other Financing Sources 90 83 83 - (7) -7.5% 0.2% Intergovernmental Revenue 102 71 123 52 22 21.4% 0.4% Grants 97 28 29 1 (68) 0.0% 0.1% Total Operating Revenues 33,877$ 32,905$ 33,963$ 1,058$ 86$ 0.3% 97.5% One-time Revenues 445 960 883 (76) 438 98.4% 2.5% Total Revenues 34,323$ 33,865$ 34,847$ 982$ 524$ 1.5% 100.0% Council Agenda 5-6-2025 9.D-4
and Easter), followed by a 1.0% increase during both May and June, compared to the same months in the previous year. Chart 1 further illustrates FY 2025 TOT revenues collected in comparison to FY 2024.
Chart 1. TOT Revenues FY 2025 compared to FY 2024
Based on these trends, staff projects that TOT revenues will be $15.02 million, representing an $99 thousand surplus from the budgeted amount, and a 0.4% decrease, or $66 thousand decrease, from the previous year's TOT revenues.
• Property-related tax revenues are projected to be $127 thousand greater than budget and $77 thousand, or 1.0%, greater 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.
• Sales and Use Tax revenues are projected to be $95 thousand less than budget and $45 thousand, or 1.2%, greater than the prior year. Sales and use tax revenues are made up of two sources:
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
TO
T
A
m
o
u
n
t
FY 2024
FY 2025
Council Agenda 5-6-2025 9.D-5
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 and projected forecasts, the Bradley-Burns Uniform Sales and Use Tax is projected to be $95 thousand less than budget expectations while still exceeding the prior year’s revenues by $45 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 $3.79 million.
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
The public safety sales tax revenues are budgeted at $126 thousand in FY 2025 and are anticipated to be $121 thousand. This FY 2025 projected amount is $5 thousand less than the FY 2024 public safety sales tax revenues.
In summary, sales and use tax revenues are projected to be $95 thousand less than budget and $45 thousand, or 1.2%, greater than the prior year.
• Other Revenues are projected to come in $1.04 million above budget and $151 thousand, or 4.3%, greater than the previous year. This category includes fines and forfeitures, interest earnings, rents and leases, various service fees, and other miscellaneous revenue sources.
• Permits are projected to come in $289 thousand less than budget and $366 thousand, or 26.9%, less than the previous year. This category includes building permits, $-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
Sa
l
e
s
T
a
x
A
m
o
u
n
t
FY 2025
FY 2024
Council Agenda 5-6-2025 9.D-6
planning fees, engineering permits, and special event permits. Depending on the timing of various projects, permit revenues may fluctuate from year to year.
• Departmental Revenues are projected to be $21 thousand greater than budget and $663 thousand, or 69.9%, 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 $986 thousand, or 704.0%, greater than the prior year. This additional $986 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 $115 thousand transfer in from the Parking Enterprise Fund to support concrete and asphalt repairs of $50 thousand and an ongoing beautification of $65 thousand, including $50 thousand specifically for the pier and pier plaza. 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 $49.57 million and projected actual expenditures total $38.06 million. Operating expenditures are projected to be $1.26 million less than the Revised Budget based on third quarter expenditures. One-time capital costs are projected to be $10.25 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.
Total operating expenditures through the third quarter total should be about 75% of the budget, assuming the timing of expenditures is consistent throughout the year. This year, about 62% of the operating budget was spent through the third quarter, while only 20% of the one-time capital expenditure budget was spent in the first three quarters. 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 70% mark.
Council Agenda 5-6-2025 9.D-7
Table 5. FY 2025 General Fund Expenditure Budget and Projected Actuals
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 82% of the budget was spent through the third quarter.
• Professional Services, which reflects that 29% was spent in the first three quarters.
These costs are based on the timing of work performed and are not set amounts per month.
• Contract Services, which reflect that 62% of the budget was spent in the first three quarters. Staff anticipates about $553 thousand in savings for the year in operations & maintenance based on the current level of spending.
• Operations & Maintenance expenses reflect that 62% of the budget was spent in the first three quarters. Staff anticipates about $119 thousand in savings for the year in operations & maintenance based on the current level of spending. • Debt Service, which reflect that 48% of the budget was spent in the first three quarters.
Debt Service payments are due at certain times of the year based on a set debt service schedule and the full budgeted amount will be spent in FY 2025. • Other Financing Uses, which started out with a $1.00 million general contingency budget and reflects that only 20% of the budget has been spent in the first three quarters. This budget is allocated over time based on unanticipated costs that come up throughout the year and are not a consistent allocation of expenditures.
A B C D = C/B E F = B - E
($ thousands)
Expenditure Category
FY 2024
Actuals
FY 2025
Revised
Budget
FY 2025
Third
Quarter
Actuals
Third Quarter
Actuals % of
Budget
FY 2025
Projected
Actuals
Variance
(Revised
Bdgt -
Projected
Actuals)
Proj
Actual
% of
Total
Salaries & Wages 9,011$ 10,006$ 7,314$ 73%9,509$ 497$ 24.9% Benefits 5,141 5,648 4,655 82%5,986 (338) 15.7% Professional Services 4,630 5,370 1,580 29%5,210 160 13.6% Contract Services 3,069 4,014 2,472 62%3,462 553 9.1% Operations & Maintenance 1,572 2,063 1,297 63%1,944 119 5.1% Debt Service 428 1,954 944 48%1,954 - 5.1% Other Expenses 1,363 1,615 1,140 71%1,557 58 4.1% Other Financing Uses 122 992 198 20%992 - 2.6% Transfers Out 713 880 540 61%802 78 2.1% Retiree Medical Insurance 182 265 140 53%265 - 0.7% Capital Projects 133 39 11 28%39 - 0.1% Total Operating Expenditures 26,366$ 32,848$ 20,291$ 62% 31,721$ 1,127$ 83.1% One-time Capital Costs 8,169 16,718 3,427 20%6,465 10,253 16.9% Total Expenditures 34,534$ 49,566$ 23,718$ 48% 38,186$ 11,380$ 100.0% Council Agenda 5-6-2025 9.D-8
• Transfer Out to other funds, which includes support for the Motor Vehicle Replacement Fund operations and vehicle replacement costs, Chapman Estate Fund, and Pier Enterprise Fund and reflects that only 61% of the budget has been spent in the first three quarters. The majority of these transfers are scheduled for the end of FY 2025, pending the need for General Fund support in those funds. • Retiree Medical Insurance costs, which reflects that 53% of budget was spent in the first three quarters of the fiscal year. The monthly costs are payments to Retirees and are expected to be fully spent by the end of FY 2025.
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, $219 thousand of this appropriation was allocated for various purposes as outlined in Table 6, leaving $781 thousand remaining.
Table 6. FY 2025 General Fund Contingency Budget
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 three quarters 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 $343 thousand remaining. Details of the allocation are provided in Table 7.
Beginning Balance July 1, 2024 1,000,000$
Appropriations
Police License Plate Reader cameras (39,925)$
Event Funding (54,950)
Public Works Corp Yard Facility Assessment (15,000)
FWHA Safe Streets for All Grant match (40,000)
FEMA CalOES Pier Ave Storm Drain Outfall grant match (41,389) Fire Jr Lifeguard program Scholarship/Financial Aid (3,000) Public Works Encroachment Permit Inspection Svcs (25,000) Total Appropriations (219,265)
Ending Balance as of March 31, 2025 780,735$
Council Agenda 5-6-2025 9.D-9
Table 7. 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 December 31, 2024 342,798$
Council Agenda 5-6-2025 9.D-10
VIII. Other Funds
Table 8 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 ending fund balances.
Table 8. Other Funds
Fund
Type Fund Fund Title
Beginning
Fund Balance
Projected
Actual Revenue
Projected Actual
Expenditure Net Rev - Exp
Projected
Ending Fund
Balance Carryforward
Unrestricted
Fund Balance
General Operating Funds
1001 General Fund 24,638,529 34,846,852 38,185,922 (3,339,070) 21,299,459 10,253,155 11,035,985 1002 Half-Cent Sales Tax Fund 3,745,497 2,094,023 1,027,496 1,066,527 4,812,024 3,052,333 1,759,691 Special Revenue Funds
2001 Gas Tax Fund 273,055 408,697 142,289 266,408 539,464 150,000 389,464 2002 Local Transportation 347,102 197,055 5,829 191,226 538,328 (220) 538,548 2003 PEG Fund 112,323 31,389 15,769 15,621 127,944 26,081 101,863 2004 Grants-NonCapital 91,344 199,293 150,916 48,377 139,721 - 139,721 2005 Housing In-Lieu Fee 640,455 10,623 21,798 (11,175) 629,280 27,570 601,710 2006 LBID Operations 707,097 1,467,287 1,585,149 (117,863) 589,235 - 589,235 2006 LBID Improvements 1,909,004 1,467,287 513,219 954,068 2,863,072 - 2,863,072 2007 Chapman Estate 37,464 38,325 75,450 (37,125) 339 - 339 Capital Project Funds
3001 Capital Projects 2,689,980 20,616,792 20,616,792 - 2,689,980 2,689,980 - 3002 Public Facilities Fund 896 - - - 896 - 896 3003 Park Development Fund 370,815 57,382 138,817 (81,435) 289,380 82,193 207,187 3101 Circulation Fees 566,054 52,564 166,071 (113,507) 452,547 - 452,547 3102 Impact Fees 391,684 60,543 147,540 (86,997) 304,688 - 304,688 3103 Developer Impact Fee 58,651 - - - 58,651 - 58,651 3201 Underground Utility Fnd 16,869 - - - 16,869 - 16,869 Debt Service Funds
4001 PFA Debt Service - - - - - - - 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 9,845,204 6,432,426 7,258,799 (826,374) 9,018,831 9,018,831 - 6102 Water Tax (Lopez/State)257,476 2,504,756 2,439,365 65,391 322,867 322,867 - 6103 Water Construction Fund 1,527,284 1,016,294 2,055,474 (1,039,180) 488,103 488,103 - 6104 Water Expansion Fund 955,038 69,901 64,832 5,069 960,107 960,107 - 6105 Water Central Coast Blue 565 38,000 27,202 10,798 11,363 11,363 - Water Enterprise Funds 12,585,567 10,061,376 11,845,672 (1,784,296) 10,801,271 10,801,271 - 6201 Wastewater Treatment 5,229,528 6,789,504 8,447,809 (1,658,305) 3,571,223 3,571,223 - 6202 Wastewater Capital Proj 1,815,769 1,787,843 2,453,688 (665,845) 1,149,924 1,149,924 - 6203 Wastewater Expansion 2,141,284 142,334 1,200,000 (1,057,666) 1,083,618 1,083,618 - 6204 Wastewater Central Coast B 1,146 77,151 53,082 24,069 25,215 25,215 - Wastewater Enterprise Fund 9,187,727 8,796,833 12,154,579 (3,357,746) 5,829,981 5,829,981 - 6301 Local Trans Transit - - - - - - - 6401 Pier Enterprise - 167,665 163,042 4,623 4,623 4,623 - 6501 Parking Enterprise 3,713,836 3,190,070 5,615,841 (2,425,771) 1,288,065 1,288,065 - Internal Service Funds
7101 Technology Service Fund 59,512 2,075,963 2,120,731 (44,767) 14,745 - 14,745 7201 Motor Vehicle Fund 5,155,518 1,939,872 3,926,069 (1,986,197) 3,169,321 - 3,169,321 Council Agenda 5-6-2025 9.D-11
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 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. On the November 5, 2024 ballot, Pismo Beach voters approved a new Ballot Measure F-24 that will replace the 0.50% transaction and use tax with a 1.0% transaction 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 $2.09 million. Projected actual expenditures are $1.03 million. After accounting for a $3.05 million carryforward of project budgets, there is a $1.76 million projected ending fund balance in this fund. Table 9 lists the budgeted projects and projected actuals in this fund for FY 2025.
Table 9: Half-Cent Sales Tax Fund FY 2025 Budgeted Projects and Projected Actuals
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 $409 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 $389 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 $197 thousand and projected actual expenditures are $6 thousand.
Projects
FY 2025
Budget
FY 2025 Projected
Actuals
FY 2025 Paving project $ 2,300,000 $ - Ventana Sports Courts 1,000,000 736,667 Signalize Bello/Price Canyon Rd 489,000 - FY 2022 Paving project 230,829 230,829 El Portal Outfall 60,000 60,000 Total $ 4,079,829 $ 1,027,496
Council Agenda 5-6-2025 9.D-12
Based on the projected revenues and expenditures for the current year, there is $538 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 $102 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 $602 thousand 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 $1.47 million. Operating expenditures are projected at $1.59 million. The fund is expected to end the year with a $589 thousand unrestricted fund balance.
LBID Fund (2006) Improvements
The LBID Fund for improvements includes a 1% assessment for physical improvements.
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 $1.47 million.
Expenditures include $0.50 million for various projects as listed in Table 10 below. The fund is expected to end the year with a $2.88 million unrestricted fund balance. This amount, plus FY 2025 projected assessment revenues are anticipated to support future visitor-serving physical improvements.
Council Agenda 5-6-2025 9.D-13
Table 10: LBID2 Fund FY 2025 Budgeted Projects and Projected Actuals 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 $38 thousand of revenues, including $22 thousand from the General Fund to support operations, $7 thousand from the General Fund for the Chapman Estate condition assessment project, and $8 thousand from private event revenues. Projected actual expenditures are $75 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 $339.
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 $57 thousand in impact fee and permit revenues. Projected actual expenditures total $166 thousand and include the projects shown in Table 11. The table lists the budgeted projects and projected actuals in this fund for FY 2025.
Table 11: Park Development Fund FY 2025 Budgeted Projects LBID2 Improvements
FY 2025
Budget
FY 2025 Projected
Actuals
Addie Street Restroom Improvements $ 1,200,000 $ 30,000 Street/Pier Plaza Sweeper & Pressure Washer 264,219 264,219 Christmas Décor 120,000 120,000
Butterfly Grove Parking Crosswalk Design 100,000 - Butterfly Grove Trail Signage 50,000 -
Special Events and Festival Seed Funding 50,000 - Beautification 50,000 50,000
Pismo Beach Information Center 50,000 -
Stewardship Banner Program 25,000 25,000
Beach Cleaning Study 8,000 8,000
Total $ 1,917,219 $ 497,219
Projects
FY 2025
Budget
FY 2025 Projected
Actuals
Ventana Sports Courts 130,000$ 130,000$
Price Historic Park/ Meherin House 85,029 2,836
Overhead costs 5,981 5,981
Total 221,010$ 138,817$
Council Agenda 5-6-2025 9.D-14
After accounting for carryforward budgets to next fiscal year, the fund is expected to end the year with a $207 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 $6.43 million, and expenditures are projected to be $7.26 million.
The projected ending fund balance for the Water Enterprise Fund is $9.02 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 $10.80 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 $6.79 million, and expenditures are projected to be $8.45 million. The estimated ending fund balance is $3.57 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 $5.83 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 $168 thousand, including $83 thousand from revenues from the Pier Airstreams and $85 thousand from the General Fund. Projected expenditures include $163 thousand for Pier and Pier Plaza operating costs. The Pier Enterprise Fund is expected to end the year with a $5 thousand ending fund balance.
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.
Revenues are projected to reach $3.19 million and operating expenditures are projected to be $1.72 million. As shown in Table 12, in addition to operating expenditures, the Council Agenda 5-6-2025 9.D-15
budget includes $3.90 thousand for one-time projects. Of these projects, staff projects the full $3.90 thousand will be spent in FY 2025. The FY 2025 projected ending fund balance is $1.29 million.
Table 12: Parking Enterprise Fund FY 2025 Budgeted Projects 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 $3.17 million, which are accumulated funds necessary to fund future replacements.
Conclusion and Recommendation
Staff recommends that Council receive this report as information only.
FISCAL IMPACT:
There is no fiscal impact from receiving this report as it is information only.
ATTACHMENTS:
None
Submitted by: Nadia Feeser, Administrative Services Director City Manager Approval:
Projects
FY 2025
Budget
FY 2025 Projected
Actuals
South Dolliver Parking Lot Purchase 3,301,516$ 3,301,516$ Public Safety Facility 300,000 300,000
Police Dept/Parking Substation 195,317 195,317
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 3,898,753$ 3,898,753$
Council Agenda 5-6-2025 9.D-16