Pismo Beach City Council
June 3, 2025

PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #12.A
Meeting Date: June 3, 2025

TITLE:

Biennial Budgets for Fiscal Year 2026 and Fiscal Year 2027: July 1, 2025 through June 30, 2027

RECOMMENDATION:

Adopt a Resolution adopting biennial budgets for the City of Pismo Beach for Fiscal Year 2026 and Fiscal Year 2027: July 1, 2025 through June 30, 2027.

DISCUSSION:

Beginning in October 2024, the City Council began efforts to solicit the community’s input to help shape the Council’s goals for the upcoming Fiscal Year (FY) 2026 and FY 2027 budgets. The Council received input through the City’s goal-setting outreach program called “Pismo Voice,” including flyers in all utility bills; social media, and other online notifications such as Facebook, Next Door, Notify Me, online survey/Pismo Voice platform, and feedback through the City’s website. After receiving the community’s ideas, the Council heard an informational item on January 21, 2025 to discuss the status of the current goals. On January 24, 2025, the Council took the consolidated results collected from the community outreach efforts and established six City Goals during a special meeting. These goals are listed below.

City Goals
 Quality of Life: Build on community strengths to protect and enhance the city’s quality of life.

 Streets and Infrastructure: Enhance, beautify, and maintain the City’s streets and infrastructure to ensure safety, accessibility, and long-term sustainability.

 Public Safety: Prioritize the safety and well-being of the community.  Water Resources: Ensure the sustainability of the City’s existing water supply and storage, identifying new sources, promoting conservation, and engaging the community.

 Parking and Circulation: Enhance parking infrastructure, expand inventory, and improve traffic circulation.

 Development and Housing Access: Foster sustainable community development while supporting efforts to address housing needs and homelessness.

Staff developed work plan budget items to implement the City Goals as well as other important initiatives to improve services to the public and maintain and improve the City’s infrastructure. On April 3, 2025, the City Council conducted a public workshop on the proposed budgets for FY 2026 and FY 2027, including a review of the City’s fiscal policies, General Fund reserves, an overview of the proposed budget, current projects in progress, Council Agenda 6-3-2025 12.A-1

Council goals, department initiatives, position changes, and proposed vehicle purchases.

At that meeting, the City Council affirmed: the City’s fiscal policies; staff’s proposed appropriations for Council goals, with direction to staff for modifications; position changes; department initiatives; and vehicle purchases.

On May 13, 2025, the Council held a Special Budget Workshop meeting on the proposed biennial budgets for FYs 2026 and 2027. At this meeting, staff presented a summary of the proposed budgets and work plans to the Council, and the Council heard public comments and outside agency funding requests. The Council provided direction for the final budgets, which are presented below.

Proposed Budget Summary
The FY 2026 and FY 2027 Proposed Budgets present a balanced budget, with revenues sufficient to cover normal operations (or base level) and proposed ongoing City goals and other initiatives (or work plan) expenditures. The baseline budget is a continuation of all current services and contracts without any changes to staffing levels, contract costs beyond normal cost increases, program enhancements, or capital projects. The City goals and other initiatives represent all revenues and expenditures over the baseline budget.

These City goals and other initiatives include measures to implement the City’s goals, investments in Quality of Life, Streets and Infrastructure, Public Safety, City’s future for Water Resources; Parking and Circulation; and Development and Housing Access.

These items include several capital projects, program enhancements, and fully funds contributions to contingency funds, replacement funds, and General Fund reserves.

Tables 1 through 3 depict the FY 2026 and FY 2027 Proposed Budgets, all net of transfers.

Table 1: FY 2026 and FY 2027 Total Proposed Budget

Table 1 represents the total proposed budget with all ongoing and one-time revenues and expenditures.

Total Budget
FY 2026
Proposed
Budget
FY 2027
Proposed
Budget
Beginning Fund Balance 31,517,260$ 32,687,003$
Revenues 69,737,948$ 62,223,342$
Expenditures 68,568,205 64,287,327
Net (Revs - Exps) 1,169,743$ (2,063,985)$
Ending Fund Balance 32,687,003$ 30,623,018$
Council Agenda 6-3-2025 12.A-2

Table 2: FY 2026 and FY 2027 Proposed Operating Budget

Table 2 includes the operating budget, or just the ongoing revenues and expenditures.

Note that the all funds operating budget is structurally balanced, meaning that operating revenues are greater than or equal to operating or ongoing expenditures.

Table 3: FY 2026 and FY 2027 Proposed One-Time Budget
(Net is Supported by Fund Balance)

Table 3 includes the one-time revenues and expenditures. Note that the one-time expenditures are supported by one-time revenues or fund balance.

The Proposed Two-Year Budget is Balanced
The FY 2026 Proposed budget for all funds, net of transfers between funds, includes a total of $59.74 million in revenues and $68.57 million in operating and capital budget for a net $1.17 thousand million more revenues than expenditures. The operating budget is balanced with a $8.49 million net operating surplus. The $7.32 million expenditures that exceed revenues are for one-time capital projects that the City will support from accumulated fund balances.

The FY 2027 Proposed budget for all funds, net of transfers between funds, includes a total of $62.22 million in revenues and $64.29 million in operating and capital budget for a net $2.06 million more expenditures than revenues. The operating budget is balanced with a $9.30 million net operating surplus. The $11.36 million expenditures that exceed revenues are for one-time capital projects that the City will support from accumulated fund balances.

City Goals and Other Important Initiatives
The proposed budget makes significant contributions to the City’s goals and other initiatives citywide. These contributions are listed in the attached City Goals and Other Initiatives items (Attachment 2). The amounts of recommended above-base items that Operating Budget
FY 2026
Proposed
Budget
FY 2027
Proposed
Budget
Revenues 61,100,308$ 61,723,342$
Expenditures 52,605,755 52,422,787
Net (Revs - Exps) 8,494,553$ 9,300,555$
One-time
FY 2026
Proposed
Budget
FY 2027
Proposed
Budget
Revenues 8,637,640$ 500,000$
Expenditures 15,962,450 11,864,540
Net (Revs - Exps) (7,324,810)$ (11,364,540)$
Council Agenda 6-3-2025 12.A-3

are ongoing in nature and include enhancing service levels and address Council priorities, net of transfers, are $2,110,985 in FY 2026 and $2,539,464 in FY 2027. The amounts of recommended work plan items that are one-time investments and include capital improvement projects that address critical infrastructure needs and other City goals, net of transfers, total $16,046,851 in FY 2026 and $10,028,284 in FY 2027.

Contributions to Outside Agencies
The proposed budget includes contributions to various non-profit entities. These contributions are one-time in nature and are considered by the Council after the City’s budget is balanced and there are additional resources available for these purposes. On May 13, 2025, the City Council directed staff to include funding to support $75,700 of contributions, including $66,500 from the General Fund and $9,200 from the Housing In Lieu Fee Fund.

Increases to City Reserves
In addition to supporting baseline operations, funding City goals, and supporting other important initiatives, the proposed budget continues to increase reserves.

Contributions to Reserves
 The General Fund Reserve is maintained at 25% of General Fund budgeted operating expenditures. As such, the proposed budget includes an additional $512 thousand in FY 2026 and an additional $16 thousand in FY 2027 from the General Fund unassigned fund balance to contribute to the General Fund Reserve.  The City’s Fiscal Policy to maintain a contingency reserve of 1% of budgeted General Fund operating expenditures to support unanticipated items that may occur during the budget years is fully funded. Due to several large capital projects that could experience cost overruns, the contingency budget in the proposed budget is increased to approximately 1.5% of budgeted General Fund operating expenditures in FY 2026 and in FY 2027, reflecting a total of $0.50 million each year.
 The Risk Management Reserve for unanticipated risk management costs is fully funded and maintained at $250 thousand.
 The proposed budgets maintain the $500 thousand City Facility Reserve.  The proposed budgets include setting aside $2.00 million in FY 2026 and FY 2027 of the General Fund unassigned fund balance for a Budget Stabilization Set-Aside.

This set-aside allows the City to manage a potential economic downturn by drawing down from the set-aside.

Position Changes
The FY 2026 and FY 2027 Proposed Budget includes the funding to support five position reclassifications, primarily as a result of the City’s recent Public Works Department Assessment and also to reclassify an Administrative Services Department position to place the position in the appropriate position. The total of these position reclassification costs are $32,568 in FY 2026 and $33,887 in FY 2027.

Council Agenda 6-3-2025 12.A-4

Conclusion and Recommendation
Staff recommends that the City Council adopt a Resolution (Attachment 1) adopting biennial budgets for the City of Pismo Beach for Fiscal Year 2026 and Fiscal Year 2027:

July 1, 2025 through June 30, 2027.

FISCAL IMPACT:

The fiscal impact of adopting the attached resolution is appropriating the total revenues and expenditures for FY 2026 and FY 2027 reflected in Table 4.

Table 4: FY 2026 and FY 2027 Revenue and Expenditure Appropriations

FY 2026 FY 2027
Fund Title Revenues Expenditures Revenues Expenditures
General Fund 39,474,939.96$ 37,034,459.54$ 39,517,378.52$ 36,701,150.90$ Transaction Sales Tax Fund 63,717.00 2,757,460.00 63,717.00 4,743,870.00 Gas Tax Fund 449,988.00 142,358.00 449,988.00 142,429.00 Local Transportation 182,037.00 895.00 182,037.00 985.00 Public Education Government Fund 37,058.00 14,123.00 37,058.00 14,247.00 Grants - Non-Capital 150,086.00 150,943.00 150,086.00 150,971.00 Housing In Lieu Fee 4,762,144.00 4,788,179.00 12,144.00 151,451.00 Lodging Business Improvement 2,776,328.00 2,978,177.18 2,872,328.00 2,599,883.18 Chapman Estate Fund 56,000.00 56,274.00 57,000.00 56,654.00 Capital Projects 6,186,357.00 6,140,000.00 4,986,357.00 4,940,000.00 Park Development Fund 51,186.00 6,579.00 51,186.00 7,237.00 Circulation Fees 311.00 42.00 311.00 43.00 Impact Fees 12,246.00 941.00 12,246.00 969.00 Public Financing Agency 3,089,818.14 3,089,818.14 3,082,342.88 3,082,342.87 Water Enterprise Fund 6,292,681.00 5,343,897.55 6,538,681.00 10,003,951.55 Water Tax Lopez State 2,025,143.00 2,297,202.00 2,425,143.00 2,439,652.00 Water Construction Fund 421,803.00 395,000.00 4,246,803.00 4,220,000.00 Water Expansion Fund 25,086.00 - 25,086.00 - Water Central Coast Blue JPA 7,814.00 6,600.00 4,250.00 - Wastewater Treatment Fund 6,139,112.26 8,057,857.06 6,314,758.34 6,057,606.07 W as tewater Capital Projects 2,532,176.00 2,531,000.00 932,176.00 931,000.00 Wastewater Expansion 61,970.00 - 61,970.00 - WW Central Coast Blue JPA 16,059.00 13,400.00 8,823.00 - Pier Enterprise Fund 118,582.00 116,596.00 130,750.00 136,156.00 Parking Enterprise Fund 3,287,454.00 2,090,007.00 3,337,454.00 2,110,489.00 Technology Service Fund 2,360,174.00 2,360,174.00 1,781,791.00 1,781,791.00 Motor Vehicle Fund 2,122,432.00 1,160,976.63 2,002,812.00 1,075,783.38 Total All Funds 82,702,702.36$ 81,532,959.10$ 79,284,676.74$ 81,348,661.95$ Less Transfers between Funds (12,964,754.40) (12,964,754.40) (17,061,335.22) (17,061,335.22) Total All Funds Less Transfers 69,737,947.96$ 68,568,204.70$ 62,223,341.52$ 64,287,326.73$ Council Agenda 6-3-2025 12.A-5

ATTACHMENTS:

1. Resolution

1.A. Exhibit A – Appropriation Tables

2. City Goals and Other Initiatives

3. Capital Project Budgets
Submitted by: Nadia Feeser, Administrative Services Director City Manager Approval:

Council Agenda 6-3-2025 12.A-6

RESOLUTION NO. R-2025-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,

CALIFORNIA ADOPTING BIENNIAL BUDGETS FOR THE CITY OF PISMO BEACH FOR FISCAL YEAR 2026 AND FISCAL YEAR 2027: JULY 1, 2025 THROUGH JUNE 30, 2027
WHEREAS, beginning in October 2024, the City Council began efforts to solicit the community’s input to help shape the Council’s goals for the upcoming Fiscal Year (FY) 2026 and FY 2027 budgets; the Council received input through the City’s goal-setting outreach program called “Pismo Voice,” including flyers in all utility bills; social media, and other online notifications such as Facebook, Next Door, Notify Me, online survey/Pismo Voice platform, and feedback through the City’s website; and WHEREAS, after receiving the community’s ideas, the Council heard an informational item on January 21, 2025 to discuss the status of the current goals; and WHEREAS, on January 24, 2025, the Council took the consolidated results collected from the community outreach efforts and established six City Goals; and WHEREAS, staff developed work plan budget items to implement the City Goals as well as other important initiatives to improve services to the public and maintain and improve the City’s infrastructure; and
WHEREAS, on April 3, 2025, the City Council conducted a public workshop on the proposed budgets for FY 2026 and FY 2027, including a review of the City’s fiscal policies, General Fund reserves, an overview of the proposed budget, current projects in progress, Council goals, department initiatives, position changes, and proposed vehicle purchases; at that meeting, the City Council affirmed: the City’s fiscal policies; staff’s proposed appropriations for Council goals, with direction to staff for modifications; position changes; department initiatives; and vehicle purchases; and
WHEREAS, on May 13, 2025, the Council held a Special Budget Workshop on the proposed biennial budgets for FYs 2026 and 2027. At this meeting, staff presented a summary of the proposed budgets and work plans to the Council, and the Council heard public comments and outside agency funding requests; the Council provided direction for the final budgets and to return with the final budget resolution on June 3, 2025.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby appropriates from the specified City Funds, the amounts set forth for the departments, activities, programs, and projects as listed in Exhibit A attached hereto and by this reference made a part hereof.

Attachment 1
Council Agenda 6-3-2025 12.A-7

BE IT FURTHER RESOLVED that the City Council of the City of Pismo Beach hereby sets aside previously appropriated funds for projects and encumbrances carried forward from previous years, and not yet completed.

UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 3rd day of June 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
IN WITNESS WHEREOF, I have hereunto set my hand and official seal of the City of Pismo Beach on _______________________.
________________________
Erica Inderlied, City Clerk
Attachment 1
Council Agenda 6-3-2025 12.A-8

Table A: City of Pismo Beach General Fund Budgets for FY 2026 and FY 2027

General Fund FY 2026 FY 2027
Administrative Services 1,504,235.27$ 1,535,266.27$ City Council 298,814.00 298,961.00
City Manager 1,701,330.50 1,747,404.50
Conference & Visitors Bureau 936,298.04 943,105.04 Debt Service 2,887,884.32 2,881,762.88
General Government 2,256,936.30 2,595,999.10
Legal 547,000.00 547,000.00
Subtotal Administrative 10,132,498.43$ 10,549,498.79$
Fire 4,318,176.88 4,466,644.88
Junior Lifeguards 68,918.00 68,918.00
Lifeguards 457,991.00 456,224.00
Police 9,355,731.00 9,537,377.00
Weed Abatement 31,500.00 31,500.00
Subtotal Public Safety 14,232,316.88$ 14,560,663.88$
Building 1,005,245.70 1,027,457.70
Planning 1,391,202.48 1,416,691.48
Recreation 1,082,594.35 1,096,391.35
Subtotal Community Development 3,479,042.53$ 3,540,540.53$ Engineering 1,305,651.74 1,323,896.74
Government Buildings 1,018,727.60 1,059,372.60
Parks 2,098,171.80 2,189,416.80
Streets 989,574.56 1,005,339.56
Subtotal Public Works 5,412,125.70$ 5,578,025.70$
Subtotal General Fund Operations 33,255,983.54$ 34,228,728.90$ Work Plan One-time items 2,588,351.00 1,585,084.00 Work Plan Ongoing items 623,625.00 387,338.00 Subtotal Work Plans 3,211,976.00$ 1,972,422.00$
General Fund Contingency 500,000.00 500,000.00 General Fund Reserve 511,534.60 16,400.34
Subtotal Contingency/Reserves 1,011,534.60$ 516,400.34$ Non-Profit Agency Contributions 66,500.00 - Total General Fund 37,545,994.14$ 36,717,551.24$
Less Transfer to Other Funds (4,167,392.32) (4,167,695.88) Total General Fund Less Transfers 33,378,601.82$ 32,549,855.36$ Attachment 1.A
Council Agenda 6-3-2025 12.A-9

Table B: City of Pismo Beach Other Funds Budgets for FY 2026 and FY 2027

Fund Title Expenditure Type FY 2026 FY 2027
Transaction Sales Tax Fund Purchase Professional Services -$ 14,000.00$ Transfer Out to General Fund 161,600.00 29,870.00 Transfer Out to Special Revenue 2,595,860.00 4,700,000.00 Transaction Sales Tax Fund Total 2,757,460.00$ 4,743,870.00$ Gas Tax Fund Other Expenses 2,358.00 2,429.00 Transfer Out to General Fund 140,000.00 140,000.00 Gas Tax Fund Total 142,358.00$ 142,429.00$
Local Transportation Other Expenses 895.00 985.00 Local Transportation Total 895.00$ 985.00$ Public Education Government Fund Operations & Maintenance 10,000.00 10,000.00 Other Expenses 4,123.00 4,247.00
Public Education Government Fund Total 14,123.00$ 14,247.00$ Grants - Non-Capital Other Expenses 943.00 971.00 Transfer Out to General Fund 150,000.00 150,000.00 Grants - Non-Capital Total 150,943.00$ 150,971.00$ Housing In Lieu Fee Purchase Professional Services 27,570.00 150,000.00 Other Expenses 1,409.00 1,451.00
Other Financing Uses 4,759,200.00 -
Housing In Lieu Fee Total 4,788,179.00$ 151,451.00$
Lodging Business Improvement District (LBID)Salaries & Wages 38,880.00 38,880.00 Benefits 3,977.18 3,983.18
Purchase Professional Services 130,166.00 130,166.00 Other Purchased Services 1,235,227.00 1,235,227.00 Operations & Maintenance 70,500.00 70,500.00 Other Expenses 134,427.00 146,127.00
Other Financing Uses 130,000.00 100,000.00
Transfer Out to General Fund 1,075,000.00 275,000.00 Transfer Out to Special Revenue 60,000.00 600,000.00 Transfer Out to Internal Service 100,000.00 -
LBID Total 2,978,177.18$ 2,599,883.18$
Chapman Estate Fund Purchase Professional Services 1,000.00 1,000.00 Other Purchased Services 15,590.00 16,460.00 Operations & Maintenance 39,200.00 38,700.00 Other Expenses 484.00 494.00
Chapman Estate Fund Total 56,274.00$ 56,654.00$ Attachment 1.A
Council Agenda 6-3-2025 12.A-10

Fund Title Expenditure Type FY 2026 FY 2027
Capital Projects Capital Outlay 6,140,000.00 4,940,000.00 Capital Projects Total 6,140,000.00$ 4,940,000.00$
Park Development Fund Other Expenses 6,579.00 7,237.00 Park Development Fund Total 6,579.00$ 7,237.00$ Circulation Fees Other Expenses 42.00 43.00 Circulation Fees Total 42.00$ 43.00$
Impact Fees Other Expenses 941.00 969.00 Impact Fees Total 941.00$ 969.00$
Public Financing Agency Debt Service 3,089,818.14 3,082,342.87 Public Financing Agency Total 3,089,818.14$ 3,082,342.87$ Total Other Funds 20,125,789.32$ 15,891,082.05$
Less Transfers to Other Funds (4,282,460.00) (5,894,870.00) Total Other Funds Less Transfers 15,843,329.32$ 9,996,212.05$ Attachment 1.A
Council Agenda 6-3-2025 12.A-11

Table C: City of Pismo Beach Enterprise Funds Budget for FY 2026 and FY 2027

Fund Title Expenditure Type FY 2026 FY 2027
Water Enterprise Fund Salaries & Wages 615,554.58$ 624,204.58$ Benefits 384,437.97 393,639.97
Purchase Professional Services 1,883,409.00 2,209,990.00 Other Purchased Services 406,869.00 433,731.00 Operations & Maintenance 381,924.00 490,842.00 Other Expenses 734,408.00 756,249.00
Capital Outlay 83,000.00 83,000.00
Other Financing Uses 15,000.00 15,000.00
Transfer Out to Enterprise Fund 695,000.00 4,920,000.00 Transfer Out to Internal Service 144,295.00 77,295.00 Water Enterprise Fund Total 5,343,897.55$ 10,003,951.55$ Water Tax Lopez State Purchase Professional Services 2,297,202.00 2,439,652.00 Water Tax Lopez State Total 2,297,202.00$ 2,439,652.00$ Water Construction Fund Reserve 200,000.00 200,000.00 Capital Outlay 195,000.00 4,020,000.00
Water Construction Fund Total 395,000.00$ 4,220,000.00$ Water Central Coast Blue JPA Purchase Professional Services 6,600.00 - Water Central Coast Blue JPA Total 6,600.00$ -$ Wastewater Treatment Fund Salaries & Wages 750,012.58 776,049.58 Benefits 419,182.51 429,446.51
Purchase Professional Services 158,358.00 191,990.00 Other Purchased Services 561,145.18 602,387.38 Operations & Maintenance 847,150.00 981,129.00 Other Expenses 1,491,659.00 1,529,646.00
Capital Outlay 120,800.00 120,800.00
Debt Service 720,308.71 111,049.26
Transfer Out to Debt Service 282,020.08 274,887.34 Transfer Out to Enterprise Fund 2,531,000.00 931,000.00 Transfer Out to Internal Service 176,221.00 109,221.00 Wastewater Treatment Fund Total 8,057,857.06$ 6,057,606.07$ Wastewater Capital Projects Reserve 131,000.00 131,000.00 Capital Outlay 2,400,000.00 800,000.00
Wastewater Capital Projects Total 2,531,000.00$ 931,000.00$ WW Central Coast Blue JPA Purchase Professional Services 13,400.00 - WW Central Coast Blue JPA Total 13,400.00$ -$
Attachment 1.A
Council Agenda 6-3-2025 12.A-12

Fund Title Expenditure Type FY 2026 FY 2027
Pier Enterprise Fund Other Purchased Services 26,596.00 30,156.00 Operations & Maintenance 90,000.00 106,000.00 Pier Enterprise Fund Total 116,596.00$ 136,156.00$ Parking Enterprise Fund Salaries & Wages 301,952.00 304,668.00 Benefits 79,563.00 80,571.00
Purchase Professional Services 13,488.00 13,133.00 Other Purchased Services 37,745.00 37,345.00 Operations & Maintenance 99,442.00 100,250.00 Other Expenses 543,451.00 540,156.00
Capital Outlay 328,000.00 348,000.00
Transfer Out to General Fund 660,000.00 660,000.00 Transfer Out to Internal Service 26,366.00 26,366.00 Parking Enterprise Fund Total 2,090,007.00$ 2,110,489.00$ Total Enterprise Funds 20,851,559.61$ 25,898,854.62$
Less Transfers to Other Funds (4,514,902.08) (6,998,769.34) Total Enterprise Funds Less Transfers 16,336,657.53$ 18,900,085.28$ Attachment 1.A
Council Agenda 6-3-2025 12.A-13

Table D: City of Pismo Beach Internal Service Funds for FY 2026 and FY 2027

Fund Title Expenditure Type FY 2026 FY 2027
Technology Service Fund Salaries & Wages 227,936.00$ 231,619.00$ Benefits 72,080.24 72,647.24
Purchase Professional Services 257,470.00 107,470.00 Other Purchased Services 1,042,779.76 1,057,766.76 Operations & Maintenance 272,908.00 260,288.00 Capital Outlay 487,000.00 52,000.00
Technology Service Fund Total 2,360,174.00$ 1,781,791.00$ Motor Vehicle Fund Salaries & Wages 116,509.00 122,105.00 Benefits 81,724.38 85,472.38
Other Purchased Services 13,020.00 13,020.00 Operations & Maintenance 519,910.25 534,622.00 Other Expenses 16,813.00 13,134.00
Capital Outlay 413,000.00 307,430.00
Motor Vehicle Fund Total 1,160,976.63$ 1,075,783.38$
Total Internal Services Funds 3,521,150.63$ 2,857,574.38$ Less Transfers to Other Funds - - Total Internal Services Funds Less Transfers 3,521,150.63$ 2,857,574.38$ Attachment 1.A
Council Agenda 6-3-2025 12.A-14

Table E: City of Pismo Beach All Funds Expenditures for FY 2026 and FY 2027

All City Funds, including Central Coast Blue JPA Funds

Central Coast Blue JPA Funds

All City Funds, excluding Central Coast Blue JPA Funds

FY 2026 FY 2027
Total All Expenditure Appopriations 81,532,959.10$ 81,348,661.95$ Less Transfers to Other Funds (12,964,754.40) (17,061,335.22) Total All Expenditure Appopriations Less Transfers 68,568,204.70$ 64,287,326.73$ FY 2026 FY 2027
Total All Expenditure Appopriations 20,000.00$ -$ Less Transfers to Other Funds - - Total All Expenditure Appopriations Less Transfers 20,000.00$ -$ FY 2026 FY 2027
Total All Expenditure Appopriations 81,512,959.10$ 81,348,661.95$ Less Transfers to Other Funds (12,964,754.40)$ (17,061,335.22)$ Total All Expenditure Appopriations Less Transfers 68,548,204.70$ 64,287,326.73$ Attachment 1.A
Council Agenda 6-3-2025 12.A-15

Table F: City of Pismo Beach Revenue Budget for FY 2026 and FY 2027

Fund Title FY 2026 FY 2027
General Fund 39,474,939.96$ 39,517,378.52$
Transaction Sales Tax Fund 63,717.00 63,717.00 Gas Tax Fund 449,988.00 449,988.00
Local Transportation 182,037.00 182,037.00
Public Education Government Fund 37,058.00 37,058.00 Grants - Non-Capital 150,086.00 150,086.00
Housing In Lieu Fee 4,762,144.00 12,144.00
Lodging Business Improvement 2,776,328.00 2,872,328.00 Chapman Estate Fund 56,000.00 57,000.00
Capital Projects 6,186,357.00 4,986,357.00
Park Development Fund 51,186.00 51,186.00
Circulation Fees 311.00 311.00
Impact Fees 12,246.00 12,246.00
Public Financing Agency 3,089,818.14 3,082,342.88
Water Enterprise Fund 6,292,681.00 6,538,681.00
Water Tax Lopez State 2,025,143.00 2,425,143.00
Water Construction Fund 421,803.00 4,246,803.00 Water Expansion Fund 25,086.00 25,086.00
Water Central Coast Blue JPA 7,814.00 4,250.00 Wastewater Treatment Fund 6,139,112.26 6,314,758.34 Wastewater Capital Projects 2,532,176.00 932,176.00 Wastewater Expansion 61,970.00 61,970.00
WW Central Coast Blue JPA 16,059.00 8,823.00 Pier Enterprise Fund 118,582.00 130,750.00
Parking Enterprise Fund 3,287,454.00 3,337,454.00
Technology Service Fund 2,360,174.00 1,781,791.00
Motor Vehicle Fund 2,122,432.00 2,002,812.00
Total Revenue Appropriations 82,702,702.36$ 79,284,676.74$ Less Transfers In from Other Funds (12,964,754.40) (17,061,335.22) Total All Funds Revenues Less Transfers 69,737,947.96$ 62,223,341.52$ Attachment 1.A
Council Agenda 6-3-2025 12.A-16

City Goals & Other Initiatives

The following tables reflect work plan budget requests proposed for inclusion in the FY 2026 and FY 2027 budgets. These items include all work plan items for one-time, ongoing, and capital items by category, and are reflected in the previous "Exhibit A” fund appropriation tables in Attachment 1. These items propose various program enhancements and their respective costs to implement City goals and improve services to the public.

Quality of Life
Goal statement: Build on community strengths to protect and enhance the city’s quality of life.

Priorities:
• Invest in neighborhoods
• Implement community beautification and cleanliness strategies • Complete Addie Street Bathroom expansion
• Complete new Ventana sports courts
• Expand use of existing facilities by considering evening use • Invest in coastal access and bluff repair

Description Funding Source
FY 2026 Proposed
Budget
FY 2027 Proposed
Budget
One-time Cliff/Ocean Storm Drain FHWA 88.53% Grant, Transaction Sales Tax

11.47%
3,800,000.00$
One-time Sports Courts Lighting Lodging Business Improvement District 2 60,000.00 600,000.00 One-time Butterfly Grove Enhanced Parking and Crosswalk Construction
Lodging Business Improvement District 2 500,000.00
One-time Price Street and Dolliver Street Parking Lot Lighting Parking Enterprise Fund 130,000.00 300,000.00 One-time Cliff/Ocean Utility Undergrounding Transaction Sales Tax 200,000.00 One-time Pier Promenade Transformation Lodging Business Improvement District 2 200,000.00 One-time Pier Avenue Stair Removal General Fund 180,000.00 One-time Beach Cleaning Equipment - purchase of
equipment
Lodging Business Improvement District 2 100,000.00
One-time Vista Del Mar Stairs Foundation Maintenance Transaction Sales Tax 100,000.00 One-time Resurface softfall at Boosinger Park Transaction Sales Tax 75,000.00 One-time Install trash cans at 17 bus stop locations
throughout the City
Transaction Sales Tax 60,000.00
Ongoing Trash pickup for 17 additional bus stop locations Transaction Sales Tax 29,000.00 29,870.00 One-time Reroute Pismo Beach Vets Hall Heater General Fund 60,000.00 One-time Resurface Shell Beach Sports Courts General Fund 60,000.00 Ongoing Annual Beautification Fund Lodging Business Improvement District 2 50,000.00 50,000.00 Ongoing Pismo Beach Information Center Lodging Business Improvement District 2 50,000.00 50,000.00 Ongoing Resident/Business Engagement Lodging Business Improvement District 2 50,000.00 50,000.00 Ongoing Storm Damage General Fund 50,000.00 50,000.00 Attachment 2
Council Agenda 6-3-2025 12.A-17

Description Funding Source
FY 2026 Proposed
Budget
FY 2027 Proposed
Budget
One-time Replace outdated riding mower General Fund 30,000.00 Ongoing City-wide Christmas Decorations Lodging Business Improvement District 2 25,000.00 25,000.00 Ongoing Dinosaur Caves Park Path Enhancements General Fund 20,000.00 20,000.00 Ongoing Pismo Beach Stewardship Banner Program Lodging Business Improvement District 2 20,000.00 20,000.00 One-time Replace outdated walk behind mower General Fund 15,000.00 Ongoing Sidewalk Cleaning & Pressure washing, 2 PT
Maintenance Workers
General Fund, Parking Enterprise Fund 10,617.00 10,617.00 One-time Professional Architectural-Council Chamber
Accessibility Analysis
General Fund 10,000.00
ongoing Paint Pier Restroom bi-yearly General Fund 10,000.00 One-time Paint Wastewater Building Wastewater 7,500.00
One-time Replace round and rectangular tables for PB Vets Hall
General Fund 6,500.00 6,500.00
ongoing Paint Pier Plaza letters by-yearly Pier Enterprise Fund 6,000.00 One-time Dinosaur Caves sign electrical addition General Fund 4,000.00 One-time Purchase stacking chairs for SB Vets hall General Fund 3,500.00 Ongoing Junior Lifeguard Scholarship General Fund 3,000.00 3,000.00 Ongoing Beach Cleaning Equipment - ongoing maintenance General Fund 2,500.00 Total 5,709,117.00$ 1,433,487.00$
Attachment 2
Council Agenda 6-3-2025 12.A-18

Streets and Infrastructure
Goal statement: Enhance, beautify, and maintain the City’s streets and infrastructure to ensure safety, accessibility, and long-term sustainability.

Priorities:
•Invest in road, sidewalk, and park improvements
•Update the Pavement Management Plan
•Create a pavement maintenance strategy
•Complete a City facility condition assessment and address deferred maintenance Description Funding Source
FY 2026 Proposed
Budget
FY 2027 Proposed
Budget
One-time Sunset Palisades Lift Station Rehab and
Relocation of Force Main in Searidge
Wastewater Enterprise Fund 2,000,000.00$
Ongoing Routine Street Maintenance Transaction Sales Tax 1,000,000.00 1,700,000.00$ One-time Paving and Drainage Project Transaction Sales Tax 3,000,000.00 One-time Pismo Oaks Lift Station Rehab Wastewater Enterprise Fund 600,000.00 One-time Toucan Terrace Pipe Relining Wastewater Enterprise Fund 250,000.00 One-time Asset Management Program General Fund, Water, Wastewater 200,000.00 One-time City Hall Elevator Modernization General Fund 200,000.00 One-time ADA Transition Plan Update Transaction Sales Tax and Grant 156,100.00 One-time Addie Street Wet Well Improvements Wastewater Enterprise Fund 150,000.00 One-time Stratford and Wadsworth lining Wastewater Enterprise Fund 140,000.00 One-time Eldwayen Park Sidewalk Re-route Transaction Sales Tax 75,000.00 Ongoing Manhole Rehabilitation city wide Wastewater Enterprise Fund 60,000.00 60,000.00 One-time Oxidation Reduction Wastewater Enterprise Fund 60,000.00 One-time Shell Beach Sports Courts Landscaping General Fund 50,000.00 Ongoing Asset Management Program General Fund, Water, Wastewater 50,000.00 Ongoing Air-vac replacements, 2 per year, useful
life 50 years Wastewater Enterprise Fund 20,000.00 20,000.00 One-time Citywide Public Improvements Review General Fund 15,000.00 Ongoing DacTrak Software licensing General Fund 2,000.00 Total 3,976,100.00$ 5,832,000.00$
Attachment 2
Council Agenda 6-3-2025 12.A-19

Public Safety
Goal statement: Prioritize the safety and well-being of the community.

Priorities:
• Complete Public Safety Facility
• Reduce wildfire risk and promote fire hardening for the community • Create a lifeguard facility in the downtown
• Focus on retention of Police personnel
• Support technology investments that enhance public safety

Description Funding Source
FY 2026 Proposed
Budget
FY 2027 Proposed
Budget
One-time Cal Fire Proposed Agreement General Fund 243,551.00$ 203,584.00 Ongoing PPE for Firefighters - removed from CalFire
agreement to reduce 12.5% State admin fee
General Fund 17,000.00 17,000.00
Ongoing Travel for CalFire - removed from CalFire agreement to reduce 12.5% State admin fee
General Fund 12,000.00 12,000.00
One-time Backup Dispatch Connection to Bello Tower General Fund 250,000.00 Ongoing Backup Dispatch Connection to Bello Tower General Fund 12,000.00 12,000.00 One-time Backup Dispatch Connection to Hillcrest General Fund 25,000.00 Ongoing Backup Dispatch Connection to Hillcrest General Fund 12,000.00 12,000.00 One-time CST Ford Ranger General Fund 54,000.00
Ongoing CST Ford Ranger General Fund 1,500.00
One-time Community Risk Reduction Public Education mailers General Fund 40,000.00 Ongoing Public Safety Video Camera Replacement General Fund 40,000.00 On g oing Taser Replacement General Fund 31,000.00 31,000.00 One-time Radio Encryption General Fund 30,000.00
One-time Professional Communication Services - Enhanced Communications Plan General Fund 24,000.00
One-time Stokes Litter Wheel General Fund 4,700.00
To t al 755,251.00$ 329,084.00$
Attachment 2
Council Agenda 6-3-2025 12.A-20

Water Resources
Goal statement: Ensure the sustainability of the City’s existing water supply and storage, identifying new sources, promoting conservation, and engaging the community.

Priorities:
•Implement Central Coast Blue
•Pursue outside funding
•Complete construction of Charles Street Reservoir and plan for replacement of one groundwater production well
•Evaluate additional water supplies
•Enhance water conservation measures and rebate programs •Conduct public outreach and education
Description Funding Source
FY 2026
Proposed
Budget
FY 2027
Proposed
Budget
One-time New Production Well Water Enterprise Fund 4,020,000.00$ One-time Pismo Oaks and Pac Estates, Well
5 VFD Water Enterprise Fund 165,000.00$
One-time Valve Turning Machine Water Enterprise Fund 30,000.00 One-time Central Coast Blue
Communication Plan Water & Wastewater Enterprise Funds 25,000.00 75,000.00 Total 220,000.00$ 4,095,000.00$
Attachment 2
Council Agenda 6-3-2025 12.A-21

Parking and Circulation
Goal statement: Enhance parking infrastructure, expand inventory, and improve traffic circulation.

Priorities:
• Update the Downtown Study
• Continue to work on downtown parking solutions, including acquiring additional parking assets, and adopt strategies outlined in the Parking Management Plan • Incorporate parking modifications in the General Plan • Complete and implement the Bicycle and Pedestrian Master Plan • Complete the acquisition of Dolliver Street from the state and make circulation improvements in accordance with the General Plan Circulation Element

Description Funding Source
FY 2026
Proposed
Budget
FY 2027
Proposed
Budget
One-time Downtown Strategic Plan Update Lodging Business Improvement District 2 500,000.00$ One-time Dinosaur Caves/Cliff Ave Parking Transaction Sales Tax 400,000.00 One-time Price/Ocean View Improvements Transaction Sales Tax 250,000.00 One-time 330 and 320 Main Street Parking Lot Parking Enterprise Fund 150,000.00 Ongoing Replace Parking Meters on Hinds and Cypress
based on a 7 year useful life Parking Enterprise Fund 48,000.00 48,000.00$ One-time Speed Survey Update Transaction Sales Tax 14,000.00 Total 1,348,000.00$ 62,000.00$
Attachment 2
Council Agenda 6-3-2025 12.A-22

Development and Housing Access
Goal statement: Foster sustainable community development while supporting efforts to address housing needs and homelessness.

Priorities:
•Complete updates to the Local Coastal Plan, General Plan, and Zoning Code •Identify affordable housing and workforce housing opportunities •Implement measures to streamline the development process •Support and participate in regional efforts in a collaborative manner •Invest in housing and homelessness assistance where feasible Description Funding Source
FY 2026 Proposed
Budget
FY 2027 Proposed
Budget
One-time Seahaven Apartment affordable housing
renovation (grant funded)
State Grant 4,750,000.00$
One-time Safety Element & Access Element Update (grant
funded)
State Grant 350,000.00 350,000.00
One-time Housing Element Update - 7th Cycle Housing In Lieu Fee Fund 150,000.00 One-time 5 Cities Homeless Coalition General Fund 100,000.00 One-time Planning consultant help for various planning
initiatives, Urban Planning Concepts
General Fund 25,000.00 25,000.00
One-time Docusign & Laserfiche integration General Fund 15,000.00 Ongoing Website Customer Service and ADA improvements Technology Services Fund 7,900.00 8,295.00 Ongoing Phoenix administrative citation service General Fund 6,000.00 6,000.00 Total 5,253,900.00$ 539,295.00$
Attachment 2
Council Agenda 6-3-2025 12.A-23

Department Initiatives
Positions
Description Funding Source
FY 2026 Proposed
Budget
FY 2027 Proposed
Budget
Ongoing IT Allocation of various ongoing costs (Goals & Dept Initiatives)
Technology Services Fund (allocated to
various funds)
494,900.00$ 107,295.00
One-time City Hall Primary Storage Server Replacement General Fund 80,000.00 One-time SCADA Redundancy Water and Wastewater Enterprise Funds 75,000.00 One-time Corp Yard Perimeter fence repairs General Fund 70,000.00 One-time Replace Dump Truck Bed on Water Truck (WT122)Wastewater Enterprise Fund 52,000.00 Ongoing Special Event Seed Funding - LBID II Lodging Business Improvement District 2 50,000.00 50,000.00 One-time Add second vehicle lift/rack for additional repairs Motor Vehicle Fund 40,000.00 One-time Public Works Director Vehicle Motor Vehicle Fund 40,000.00 One-time Wireless AP Replacement Technology Services Fund 15,000.00 One-time Lighting in Mechanic Shop Motor Vehicle Fund 10,000.00 One-time Transition to .gov Domain Name Technology Services Fund 10,000.00 One-time Replace outdated paint trailer Motor Vehicle Fund 7,200.00 One-time Laptop and OWL conference room camera for
Corp Yard
Technology Services Fund 3,000.00
Ongoing Public Works Director Vehicle maintenance Motor Vehicle Fund 1,500.00 Total 862,900.00$ 242,995.00$
Description Funding Source
FY 2026 Proposed
Budget
FY 2027 Proposed
Budget
Position Reclassification: Lead WW Worker to Wastewater Systems Supervisor
Wastewater Enterprise Fund 9,842.00$ 10,334.00$ Position Reclassification: Finance Senior Admin Analyst to Accounting Supervisor
General Fund 6,190.00 6,190.00
Position Reclassification: Lead Water Systems Oper to Water Systems Supervisor
Water Enterprise Funds 5,970.00 6,268.00 Position Reclassification: Lead Maintenance Worker to Parks Maintenance Supervisor
General Fund 5,509.00 5,785.00
Position Reclassification: Lead Maintenance Worker to Street Maintenance Supervisor
General Fund 5,057.00 5,310.00
Total 32,568.00$ 33,887.00$
Attachment 2
Council Agenda 6-3-2025 12.A-24

Total All City Goals & Other Initiatives

City Goal FY 2026 FY 2027
Qu ality of Life 5,709,117.00$ 1,433,487.00$ Streets and Infrastructure 3,976,100.00 5,832,000.00 Public Safety 755,251.00 329,084.00 Water Resources 220,000.00 4,095,000.00 Parking and Circulation 1,348,000.00 62,000.00 Development & Housing Access 5,253,900.00 539,295.00 Total City Goals 17,262,368.00$ 12,290,866.00$ Department Initiatives/Positions 895,468.00$ 276,882.00$ Total Work Plans 18,157,836.00$ 12,567,748.00$ Attachment 2
Council Agenda 6-3-2025 12.A-25

Capital Projects Budget for FY 2026 & FY 2027

City of Pismo Beach Work Plan Capital Projects Budget for FY 2026 & FY 2027

The Capital Projects listed in this table represent the new Capital Projects budgeted for FY 2026 and FY 2027 and do not include existing or baseline budget capital projects. This table is provided as a subset of the budget to illustrate significant investments into the City’s infrastructure. These projects are included in the previous Exhibit “A” fund appropriation tables in Attachment 1.A and in the City Goals & Other Initiatives in Attachment 2. These capital project amounts are not in addition to the Exhibit “A” fund appropriation tables or the City Goals & Other Initiatives.

Category Project FY 2026 F Y 2027
Drainage Cliff/Ocean Storm Drain 3,800,000.00$
Drainage Total 3,800,000.00
Utilities Addie Street Wet Well Improvements 150,000.00 New Production Well 4,020,000.00
Air-vac replacements 20,000.00 20,000.00
Manhole Rehabilitation city wide 60,000.00 60,000.00 Oxidation Reduction 60,000.00
Pismo Oak Pac Estate Well 5 Variable Frequency Drive 165,000.00 Pismo Oaks Lift Station Rehab 600,000.00
Stratford and Wadsworth lining 140,000.00
Sunset Palisades Lift Station Rehab/Relocation of Searidge 2,000,000.00 Toucan Terrace Pipe Relining 250,000.00
Valve Turning Machine 30,000.00
Utilities Total 2,675,000.00 4,900,000.00
Streets and Transportation Paving and Drainage Project 3,000,000.00 Price/Ocean View Improvements 250,000.00
Routine Street Maintenance 1,000,000.00 1,700,000.00 Streets and Transportation Total 1,250,000.00 4,700,000.00 Parking 320/330 Main St Parking Lot 150,000.00
Dino Caves/Cliff Ave Parking 400,000.00
Replace Parking Meters on Hinds and Cypress 48,000.00 48,000.00 Parking Total 598,000.00 48,000.00
Public Facilities City Hall Elevator Update 200,000.00
Cliff/Ocean Utility Undergrounding 200,000.00
Add second vehicle lift/rack for vehicle repairs 40,000.00 Price/Dolliver Parking Lot Light 130,000.00 300,000.00 Sports Courts Lighting 60,000.00 600,000.00
Trash Cans at Bus Stops 60,000.00
Public Facilities Total 490,000.00 1,100,000.00
Attachment 3
Council Agenda 6-3-2025 12.A-26

Category Project FY 2026 F Y 2027
Technology Backup Dispatch Connection to Bello Tower 250,000.00 City Hall Primary Storage Server Replacement 80,000.00
Radio Encryption 30,000.00
SCADA Redundancy 75,000.00
Public Safety Cameras 40,000.00
Technology Total 435,000.00 40,000.00
Promenade and Beach Access Pier Ave Stair removal 180,000.00 Vista Del Mar Stair Foundation maintenance 100,000.00
Promenade and Beach Access Total 280,000.00
Parks Boosinger Park Softfall 75,000.00
Eldwayen Park Sidewalk Re-route 75,000.00
Replace outdated riding mower 30,000.00
Replace outdated walk behind mower 15,000.00
Parks Total 195,000.00
Vehicles Beach Cleaning Equipment - purchase of equipment 100,000.00 Community Services Technician Ford Ranger 54,000.00
Public Works Director Vehicle 40,000.00
Replace Dump Truck Bed on Water Truck (WT122)52,000.00
Replace outdated paint trailer 7,200.00
Vehicles Total 194,000.00 59,200.00
Total All Categories 9,917,000.00$ 10,847,200.00$
Attachment 3
Council Agenda 6-3-2025 12.A-27

City of Pismo Beach Base Capital Projects Budget for FY 2026 & FY 2027 The following table includes capital projects included in the FY 2026 and FY 2027 base budgets and are included in the previous "Exhibit A” fund appropriation tables. These projects represent items already part of the City’s baseline operating budget.

Vehicles – New/Replacement Vehicles
Category Project FY 2026 FY 2027
Utilities Water pump replacement program 40,800.00$ 40,800.00$ Replace aging water meters 50,000.00 50,000.00 Replace six valves per year in water distribution system 33,000.00 33,000.00 Utilities Total 123,800.00 123,800.00
Technology Network switch replacements 24,000.00 24,000.00 Server replacements 28,000.00 28,000.00
Technology Total 52,000.00 52,000.00
Total All Categories 175,800.00$ 175,800.00$
FY 2026
Vehicle
No. Vehicle Description Year Make Model Color
Fiscal Year
Purchased
Replacement
Cost
BAURER BAUER COMPRESSOR 1992 1992 63,000
FD172 Polaris 2017 POLARIS RAZOR 800 Gray 2018 56,000
FDEX1 Fire Extrication 2018 2018 60,000
PWNEW Toyota Rav 4 Hybrid 40,000
PDNEW CST Ford Ranger 54,000
PKNEW Beach Cleaning Equipment 100,000
373,000$
FY 2027
Vehicle
No. Vehicle Description Year Make Model Color
Fiscal Year
Purchased
Replacement
Cost
FD171 Fire 2017 FORD F250 4X4 Red 2017 82,400$
PD151 Private Passenger 2015 FORD F250 4X4 Black 2017 78,280 ST111 Light Truck 2011 FORD F250 White 2012 87,550
WT122 Dump Truck Bed 2013 52,000
TR-5 Streets Paint Trailer 2004 PACAM Trailer White 2012 7,200 307,430$
Attachment 3
Council Agenda 6-3-2025 12.A-28