PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.G
Meeting Date: January 20, 2026
TITLE:
Quarterly Paid Parking Update
RECOMMENDATION:
No action recommended, for information only
DISCUSSION:
This report provides the City Council and public with information on preliminary actual revenues and expenditures for Fiscal Year (FY) 2026 for the quarter ending December 31, 2025, and the current balance of the Parking Enterprise Fund. This report also provides an update on parking initiatives.
FY 2026 Financial Update
Table 1 details the preliminary actual revenues and expenditures for the second quarter of FY 2026 compared to the second quarter of FY 2025.
Table 1: Parking Enterprise Fund Revenues & Expenditures through 2nd Quarter
FY 2026 2nd
Quarter Actuals
FY 2025 2nd
Quarter Actuals
Variance FY26
v FY25 ($)
Variance FY26 v
FY25 (%)
July 1st Beginning Fund Balance 2,349,888$ 3,713,836$ (1,363,948)$ -36.7%
REVENUES
Parking Citations 194,180 272,033 (77,854) -28.6% Interest Earnings 38,773 63,592 (24,819) -39.0% Parking Kiosks/Meters 1,656,596 1,388,352 268,244 19.3% Parking Permits 3,360 2,000 1,360 68.0% Miscellaneous Revenue 755 (79,644) 80,399 -100.9% TOTAL REVENUES 1,893,663$ 1,646,333$ 247,330$ 15.0%
EXPENDITURES
Salaries & Wages 96,105$ 110,087$ (13,982)$ -12.7% Benefits 41,852 40,065 1,787 4.5% Purchased Professional Services 6,633 3,588 3,045 84.9% Other Purchased Services 4,805 2,569 2,236 87.0% Operations and Maintenance 28,817 66,037 (37,221) -56.4% Other Expenses 230,278 155,673 74,605 47.9% TOTAL OPERATING EXPENSES 408,491$ 378,020$ 30,471$ 8.1% NET INCOME / (LOSS) As of
December 31, 2025
1,485,173$ 1,268,313$ 216,859$ 17.1% One-time Expenditures 34,772$ 224,558$ (189,785)$ -84.5% June 30, 2026 Ending Fund
Balance
3,800,288$ 4,757,592$ (957,304)$ -20.1% Carryforward One-time projects 618,552$ 372,679$ 245,873$ 66.0% June 30, 2026 Available Ending
Fund Balance*
3,181,736$ 4,384,913$ (1,203,177)$ -27.4% *FY 2026 Available Ending Fund Balance is an estimate assuming only 2 quarters of revenues and expenditures Council Agenda 1-20-2026 9.G-1
As shown in Table 1, the preliminary estimate of revenues of the Parking Enterprise Fund at the end of the second quarter of FY 2026 (ending December 31, 2025) totaled $1,893,663, which is 15.0% greater parking revenues compared to the same period in FY 2025. This is largely due to full operation of the Dolliver parking lot and additional meters on Price Street.
Operating expenses at the end of this same period, which include personnel costs, operating expenses, and contract services, totaled $408,491, which is 8.1% greater than operating expenditures through the second quarter of FY 2025. The projected net operating income (revenues less operating expenses) through the second quarter of FY 2026 is $1,485,173. After accounting for one-time expenditures of $34,772, the projected ending balance of the Parking Enterprise Fund at the end of the second quarter is $3,800,288.
In addition to the ongoing expenses, there are one-time budgeted costs of $653,325 for one-time projects. These projects include $300,000 for the Public Safety Facility project to support the parking functions and related public safety support of parking functions; $150,000 for converting 320 and 330 Main Street lots to parking lots, $130,000 for lighting for the Price and Dolliver Street parking lots; $55,817 for the Addie Street Parking and Access Improvements project; $11,965 for additional parking meters; $4,000 for a radio system upgrade and reliability project; and $1,543 for other projects. After considering these one-time costs of $653,325 and assuming the remaining budget of $618,552 is either spent or carried forward to next fiscal year, the projected available fund balance is $3,181,736.
Parking Initiatives
The City is currently in discussions with IPS to formalize a contract for parking enforcement–related services. Staff is working toward finalizing and implementing this agreement by mid-2026. As part of these discussions, the City is evaluating the transition to IPS handling all parking enforcement payments. Utilizing the IPS enforcement platform would integrate with the City’s existing IPS and Vigilant license plate recognition technology, allowing for seamless management of citations, adjudication, permitting, and reporting while ensuring compliance with California requirements. Officers are already familiar with the IPS system, which supports efficient field operations through handheld tools and reduces administrative workload. Staff believes this integration would also enhance the customer experience by providing more consistent and streamlined parking services.
Staff continues to work on improvements to the Paid Parking Program with a focus on enhancing customer service and usability, particularly along Price Street. The City has ordered centralized paid parking kiosks and will be coordinating with IPS to establish a delivery schedule. Parking staff will be working closely with Public Works to determine the most appropriate kiosk locations to ensure safety, accessibility, visibility, with minimal impact to our street and sidewalks, with the goal of completing the project prior to the summer season. These upgrades are intended to improve the overall customer Council Agenda 1-20-2026 9.G-2
experience, reduce operational challenges, and increase compliance by providing clearer, more intuitive, and convenient parking payment options.
FISCAL IMPACT:
There is no fiscal impact from this report, which is for information only.
ATTACHMENTS:
None
Prepared by:
Marc Arroyo, Finance Supervisor
Nadia Feeser, Administrative Services Director
Scot Graham, Community Development Director
Jeff Smith, Police Chief
Submitted by: Scot Graham, Community Development Director City Manager Approval:
Council Agenda 1-20-2026 9.G-3