Mid-Year Budget Adjustments
Agenda Item 12.A
By Vanessa Garris, Finance Manager
Meeting Date: August 5, 2025
Proposed Mid-Year Budget Adjustments Fiscal
Impact by Category
negative amounts reflect additional costs or reduced revenues positive amounts reflect reduced costs or additional revenues Category
FY 2025 Proposed
Budget Adjustment
Fiscal Impact
FY 2026 Proposed
Budget Adjustment
Fiscal Impact
FY 2027 Proposed
Budget Adjustment
Fiscal Impact
Project adjustments 132,990$ 84,072$ 12,200$ Grant Funding - 268,949 - Operating costs - (67,415) (47,047) Align budget to actuals 627,118 38,627 (31,500) Fund allocation - - - Technical Corrections - 475,602 475,602 Carryforward Vehicle Budgets 1,057,606 (1,057,606) - Total Fiscal Impact 1,817,713$ (257,771)$ 409,255$
Project Adjustments
Net fiscal impact is net expenditure savings compared to budget of $133K in FY 2025, $84K in FY 2026, and $212K in FY 2027
Asset Management System – cost savings: $101,072 in FY 2026 (one-time), $12,200 in FY 2027 (ongoing) – savings allocated across various funds
AT&T 911 system extended maintenance SETNA funds: $81,031.51 in revenues and expenditures in FY 2025
Facility Condition Assessment: FY 2025 Public Works Department $90,000: $72K General Fund, $16.2K Wastewater Enterprise Fund, $1.8K Water Enterprise Fund 2022 Paving Project Use Gas Tax Funds to replace General Fund: Use $200K of SB1 Road Maintenance and Rehabilitation Account Funds, de-appropriate $200K from General Fund, per Resolution R-2025-027
Project Adjustments
•Projects completed, de-
appropriate remaining budgets:
•Police Parking Annex:
$73,807
•Security Camera System:
$28,193
•Trestle Rehab: $6,208
•TOT and LBID Audits: $80,000
Grant Funding
Net Fiscal Impact: Additional net revenues $268,500 in FY 2026, $0 in FY 2027 Local Coastal Plan Update: California Coastal Commission for the Local Assistance Grant $900K, split $450K in FY 2026 and $450K FY 2027 to updates to portions of the City’s Land Use Plan/General Plan. Appropriate grant revenues and expenditures Junior Lifeguard OHV grant: $18,500 for an Off Highway Vehicle grant to help support the Junior Lifeguard Polaris-type vehicle. This will offset the General Fund’s support of the vehicle in FY 2026 in the Motor Vehicle Replacement Fund.
Ocean Boulevard grant: City awarded $250,449 from the Federal Highway Administration program to support the Ocean Boulevard Improvements project in FY 2026.
COPS Grant: $140,000 of available COPS grant funds to support new technology (RGB Spectrum) in the Public Safety Facility, reduce General Fund Support.
Already budgeted, Council accept grant: Department of Transportation Federal Highway Administration grant for Cliff & Ocean Storm Drain project: $3,364,140
Operating Costs
•Net fiscal impact: Net additional expenditures of $67K in FY 2026 and $47K in FY 2027
•Generator Replacement
•$65,375 to replace stolen generator
•$55,375 reimbursed by CJPIA
•Council Health Insurance
•+$18,437 per year (FY 2026 & FY 2027)
•General Fund Council budget
•ClickUp – Project Management Software
•$15,000 (FY 2026), $15,750 (FY 2027)
•Allocated across all funds
•IT Allocation
•Technology costs & licenses from Tech Services Fund
•Allocated across funds based on user benefit
Align Budget to Actuals
Fund
One-time/
Ongoing
FY 2025 Proposed
Budget Adjustment
FY 2026 Proposed
Budget Adjustment
FY 2027 Proposed
Budget Adjustment
Revenues
1 Capital Projects One-time 1,115,407.14$ -$ -$ 2 Public Financing Agency One-time 1,093,783.31 - - Subtotal Revenues 2,209,190.45 - - Expenditures
1 General Fund One-time (1,407,331.76)$ (68,287.00)$ -$ 0 General Fund Ongoing - 29,660.00 31,500.00 2 Local Transportation One-time 220.00 - - 6 Lodging Business Improvement One-time (15,900.00) - - 1 Capital Projects One-time 344,947.83 - - 2 Capital Projects One-time 1,966,464.96 - - 1 Water Enterprise Fund One-time 7,250.00 - - 1 Water Enterprise Fund One-time 673,062.81 - - 1 Parking Enterprise Fund One-time 13,358.92 - - Subtotal Expenditures 1,582,072.76$ (38,627.00)$ 31,500.00$ 0 Net Fiscal Impact (Revenues - Expenditures)627,117.69$ 38,627.00$ (31,500.00)$
Fund Allocation
Transfer $300K from the water impact fee balances to the Water Enterprise Fund to reimburse the fund for various water development projects Revise the allocation of $100,000 from the General Fund for the 5 Cities Homeless Coalition to $50,000 from the General Fund and $50,000 from the Housing In Lieu Fee Fund.
Technical Corrections
Community Camera Program: Annual budget of $75,000 for the Police Department’s community camera program throughout the City. Inadvertently not included in the budget. Add back into budget to continue to support additional cameras in high impact areas.
Balance Allocations: Removing duplicate budget entries in the Wastewater Treatment Fund budget that total $550,602.
Carryforward Vehicle Budgets
Vehicle No. Vehicle Description Year Make Model Color Fiscal Year
Purchased
Carry over
Budget
PD247 F-150 SSV Responder 2024 Ford F-150 SSV RN/A 2025 5,646$ PD248 F-150 SSV Responder 2024 Ford F-150 SSV RN/A 2025 6,277 PK241 F-350 2024 FORD F-350 N/A 2025 25,619
PK242 F-350 2024 FORD F-350 N/A 2025 22,385
FDE64 Pumper 2023 Spartan ERV Pumper N/A 2025 10,132
PD245 F-150 SSV Responder 2024 Ford F-150 SSV RN/A 2025 24,713 PD246 F-150 SSV Responder 2024 Ford F-150 SSV RN/A 2025 25,834 PD214 TAHOE 2021 CHEVROLET TAHOE Blk/Wht 2022 90,000
PD184 Durango 2019 Dodge Durango Billet 2018 60,000
PD185 Durango 2019 Dodge Durango Grannit 2018 60,000
FDR64 F450 XLT 2010 FORD F450 XLT Red 2010 500,000
FDBOAT64 Water Craft 2019 YAMAHA WC FXHO Black 2020 27,000 WW122 Medium Crane Truck 2012 FORD F550 White 2013 200,000 1,057,606$
Fiscal Impact
Fund Type
FY 2025 Proposed
Budget Adjustment
FY 2026 Proposed
Budget Adjustment
FY 2027 Proposed
Budget
Adjustment
General Fund Rev 99,031.51$ 453,000.00$ 450,000.00$ General Fund Exp (1,612,299.83) 305,790.40 596,768.40 Subtotal General Fund Net 1,711,331.34 147,209.60 (146,768.40) Gas Tax Fund Exp 200,000.00 - - Subtotal Gas Tax Fund Net (200,000.00) - - Local Transportation Exp 220.00 - - Subtotal Local Transportation Net (220.00) - - Grants - Non-Capital Exp - 140,000.00 - Subtotal Grants - Non-Capital Net - (140,000.00) - Housing In Lieu Fee Exp - 50,000.00 - Subtotal Housing In Lieu Fee Net - (50,000.00) - Lodging Business Improvement Exp (31,900.00) 147.00 127.00 Subtotal LBID Fund Net 31,900.00 (147.00) (127.00) Capital Projects Rev 1,014,407.56 325,449.00 75,000.00 Capital Projects Exp 243,948.25 75,000.00 75,000.00 Subtotal Capital Projects Net 770,459.31 250,449.00 - Public Financing Agency Rev 1,093,783.31 - - Public Financing Agency Exp 1,966,464.96 - - Subtotal Public Financing Agency Net (872,681.65) - - Water Enterprise Fund Rev 300,000.00 - - Water Enterprise Fund Exp (26,550.00) (14,348.00) (3,950.00) Subtotal Water Enterprise Fund Net 326,550.00 14,348.00 3,950.00 Fund Type
FY 2025 Proposed
Budget Adjustment
FY 2026 Proposed
Budget Adjustment
FY 2027 Proposed
Budget
Adjustment
Water Construction Fund Exp - - - Subtotal Water Construction Fund Net - - - Water Expansion Fund Exp 300,000.00 - - Subtotal Water Expansion Fund Net (300,000.00) - - Wastewater Treatment Fund Rev - 55,375.00 - Wastewater Treatment Fund Exp 668,654.81 (510,335.00) (553,312.00) Subtotal Wastewater Treatment FundNet (668,654.81) 565,710.00 553,312.00 Wastewater Capital Projects Rev (6,208.00) - - Subtotal Wastewater Capital ProjectsNet (6,208.00) - - Parking Enterprise Fund Exp 32,368.92 1,014.00 922.00 Subtotal Parking Enterprise Fund Net (32,368.92) (1,014.00) (922.00) Technology Service Fund Rev - (72,312.00) 12,010.00 Technology Service Fund Exp - (72,312.00) 12,010.00 Subtotal Technology Service Fund Net - - - Motor Vehicle Fund Rev - 18,500.00 - Motor Vehicle Fund Exp (1,057,606.00) 1,062,827.00 190.00 Subtotal Motor Vehicle Fund Net 1,057,606.00 (1,044,327.00) (190.00) Total All Funds 1,817,713.27$ (257,771.40)$ 409,254.60$
Recommendation
Staff recommends that the City Council adopt a Resolution approving and appropriating budget adjustments for FY
2025 through FY 2027, and accepting various grant
awards.