Mid-Cycle Budget Adjustments
Agenda Item 12.A
By Nadia Feeser
Administrative Services Director
Meeting Date: August 4, 2026
Fiscal Impact by Category
Fiscal Impact: negative amounts reflect additional costs or reduced revenues, and positive amounts reflect reduced costs or additional revenues Category
FY 2026 Proposed
Budget Adjustment
Fiscal Impact
FY 2027 Proposed
Budget Adjustment
Fiscal Impact
Projects (345,993.20)$ (505,865.00)$
Operations 600,151.19 (67,391.97)
Parks - (184,500.00)
Hwy 1 Relinquishment - (314,600.00) Carryfoward Vehicle Budgets 656,000.00 (656,000.00) Align budget to actuals 367,690.49 (127,796.00) Adjust Technology Service Fund allocations - 135,000.00 Technical corrections - - Total Fiscal Impact 1,277,848.48$ (1,721,152.97)$
Fiscal Impact by
Fund
Fiscal Impact: negative
amounts reflect
additional costs or
reduced revenues, and
positive amounts
reflect reduced costs
or additional revenues
Fund
FY 2026 Proposed
Budget Adjustment
FY 2027 Proposed
Budget Adjustment
General Fund 2,910,457$ 105,997$
Transaction Sales Tax Fund (361,641) (587,000) Public Education Government Fund - (100,000) Housing In Lieu Fee - (100,000) Lodging Business Improvement (3,317) (5,878) Chapman Estate Fund 488 -
Capital Projects 15,316 (25,000)
Impact Fees (166,518) -
Water Enterprise Fund (507,303) (318,364) Water Tax Lopez State - 142,450 Water Construction Fund - -
Wastewater Treatment Fund 48,831 (110,358) Wastewater Capital Projects - - Pier Enterprise Fund - (14,000) Parking Enterprise Fund (52,403) (108,657) Technology Service Fund (60,251) 67,500 Motor Vehicle Fund 454,190 (667,843) Payroll Clearing (1,000,000) -
Total All Funds 1,277,848$ (1,721,153)$
Project Adjustments
The net fiscal impact is net additional
one-time cost across all funds:
$345,933.20 in FY 2026
$505,865.00 in FY 2027.
$351,454.05 in FY 2026 for total project savings from completed projects across all funds.
$166,518 in FY 2026 of additional revenues from the accumulation of Development Impact Fees that can be transferred from the Impact Fee Fund to the General Fund to help support the cost of the Public Safety Facility.
Project Adjustments (continued)
$100,000 to repair the eroding slope related to a leak in the Franklin Street waterline in the Water Enterprise Fund $70,500 for new Price Street parking signs reflecting change from two-hour to three-hour parking as discussed at the June 6, 2026 Council meeting, supported by the Parking Enterprise Fund $100,000 to update the Council Chamber broadcasting equipment, including meeting and camera software, AI-enabled camera mapping, equipment replacement, and control reprogramming, supported by the Public, Educational, and Governmental (PEG) Fund $30,000 to replace five fire waterline valves on the Pier, supported by the Transaction Sales Tax Fund $89,120 to replace cartridge seals on three vertical turbine pumps and rebuild one failing pump, supported by the Wastewater Enterprise Fund
$200,000 to replace Downtown sidewalk panels to reduce the trip-and-fall claims, supported by the Transaction Sales Tax Fund
Operating Costs
The net fiscal impact across all funds (one-
time and ongoing):
Net cost savings $600,151.19 in FY 2026
Net additional costs $67,391.97 in FY 2027.
Workers’ Compensation Balance: Transfer a one-time $1 million accumulated balance from the Payroll Clearing Fund to the General Fund in FY 2026, primarily due to lower workers’ compensation premiums.
OPEB Reimbursements: Recognize $185,858 in FY 2026 and an estimated $185,000 annually beginning in FY 2027 to reimburse the General Fund for retiree health costs.
Operating Costs (continued)
5Cities Homeless Coalition: Contribute a one-time $100,000 from the Housing In-Lieu Fee Fund in FY 2027 for shelter, case management, and direct housing assistance programs.
CAL FIRE Contract Savings: De-appropriate an estimated $375,000 in one-time General Fund savings in FY 2026.
CalPERS UAL Savings and Reallocation: Reallocate the consolidated CalPERS unfunded accrued liability across funds and recognize $116,049 in savings from the City’s upfront FY 2027 payment.
Lopez Water and Litigation Costs: Recognize $375,576 in Lopez water cost savings, offset by $350,000 in anticipated litigation costs in FY 2027, supported by the Water Enterprise Funds
Parks
Description Fund
One-time
/ Ongoing
FY 2027 Proposed
Budget Adjustment
Expenditures
5 concrete picnic tables at Spyglass Park General Fund One-time $ 11,500.00 Boosinger Park Playground softfall (additional cost)Capital Projects One-time 25,000.00 Landscaping at Palisades basketball courts General Fund One-time 88,000.00 Pier Plaza Replace three Shade Sails Pier Enterprise Fund One-time 10,000.00 Pier Plaza Whale painting Pier Enterprise Fund Ongoing 4,000.00 Professional playground inspection - annual
requirement
General Fund Ongoing 16,000.00
Dinosaur Caves Park Friendship Swing Installation
and repairs
General Fund One-time 30,000.00
Subtotal Expenditures $ 184,500.00
Net Fiscal Impact (Revenues - Expenditures)(184,500.00)$
Highway 1 Relinquishment
Under the relinquishment agreement, the City would receive $1,710,000, or another amount allocated by the California Transportation Commission, to help offset these costs.
Description Fund
One-time /
Ongoing
FY 2027 Proposed
Budget Adjustment
Expenditures
Battery backup for City-owned signals Transaction Sales Tax Fund
One-time $ 50,000.00
Electricity for Streetlights for Hwy 1 Relinquishment General Fund Ongoing 3,600.00 Highway 1 Sidewalk Extension Design Capital Projects One-time 200,000.00 Highway 1 takeover - signs, signals, battery backup
for signals
Capital Projects One-time 61,000.00 Subtotal Expenditures $ 314,600.00
Net Fiscal Impact (Revenues - Expenditures)(314,600.00)$
Carryforward Vehicle Budgets
Vehicle No. Vehicle Description Year Make Model Color Fiscal Year
Purchased
Carryforward
Budget
FDR64 F450 XLT 2010 FORD F450 XLT Red 2010 500,000
FD172 Polaris 2017 POLARIS RAZOR 800 Gray 2018 56,000
FDEX1 Fire Extrication 2018 2018 60,000
PWNEW Toyota Rav 4 Hybrid 40,000
656,000$
Align Budget to
Actuals
Fund
One-time /
Ongoing
FY 2026 Proposed
Budget Adjustment
FY 2027 Proposed
Budget Adjustment
Revenue
General Fund One-time (132,295.54)$ -$
Technology Service Fund One-time (63,008.00) - Motor Vehicle Fund One-time 56,001.12 -
Subtotal Revenues (139,302.42) -
Expenditures
General Fund One-time (871,045.96)$ -$
General Fund Ongoing 47,000.00 53,000.00
Lodging Business Improvement One-time 521.00 - Lodging Business Improvement Ongoing 2,300.00 2,500.00 Chapman Estate Fund One-time (488.00) - Water Enterprise Fund One-time 116,229.93 - Water Enterprise Fund Ongoing - 27,000.00 Wastewater Treatment Fund One-time 13,301.00 - Wastewater Treatment Fund Ongoing - - Parking Enterprise Fund One-time 31,778.00 - Parking Enterprise Fund Ongoing - - Technology Service Fund One-time 53,000.00 - Technology Service Fund Ongoing 27,200.00 28,296.00 Motor Vehicle Fund One-time 56,764.12 -
Motor Vehicle Fund Ongoing 16,447.00 17,000.00 Subtotal Expenditures $ (506,992.91) $ 127,796.00 Net Fiscal Impact (Revenues - Expenditures)367,690.49$ (127,796.00)$
Technology Services Fund Allocations
Fund
FY 2026 Proposed
Budget Adjustment
FY 2027 Proposed
Budget Adjustment
Revenue
Technology Service Fund (194,800.00)$ 162,138.00$ Subtotal Revenues (194,800.00)$ 162,138.00$ Expenditures
General Fund (149,022.00)$ 22,679.00$
Lodging Business Improvement 496.00 17.00 Chapman Estate Fund - -
Water Enterprise Fund (12,178.00) 1,366.00 Wastewater Treatment Fund (17,595.00) 1,790.00 Parking Enterprise Fund (13,375.00) 957.00 Technology Service Fund - - Motor Vehicle Fund (3,126.00) 329.00 Subtotal Expenditures $ (194,800.00) $ 27,138.00 Net Fiscal Impact (Revenues - Expenditures)-$ 135,000.00$
Technical Corrections
Description Fund
FY 2026 Proposed
Budget Adjustment
Revenue
Move one-time Backup Dispatch Connection to Bello
Tower to project account
Technology Service Fund $ 250,000.00
Move one-time Backup Dispatch Connection to
Hillcrest to project account
Technology Service Fund 25,000.00
Subtotal Revenues $ 275,000.00
Expenditures
Move CalFIRE training budget to correct account General Fund $ - Move one-time Backup Dispatch Connection to Bello
Tower to project account
General Fund 250,000.00
Move one-time Backup Dispatch Connection to Bello
Tower to project account
Technology Service Fund - Move one-time Backup Dispatch Connection to
Hillcrest to project account
General Fund 25,000.00
Move one-time Backup Dispatch Connection to
Hillcrest to project account
Technology Service Fund - Technical adjustment to correct accounts Capital Projects - Subtotal Expenditures $ 275,000.00
Net Fiscal Impact (Revenues - Expenditures)-$
Fiscal Impact by
Fund
Fiscal Impact: negative
amounts reflect
additional costs or
reduced revenues, and
positive amounts
reflect reduced costs
or additional revenues
Fund
FY 2026 Proposed
Budget Adjustment
FY 2027 Proposed
Budget Adjustment
General Fund 2,910,457$ 105,997$
Transaction Sales Tax Fund (361,641) (587,000) Public Education Government Fund - (100,000) Housing In Lieu Fee - (100,000) Lodging Business Improvement (3,317) (5,878) Chapman Estate Fund 488 -
Capital Projects 15,316 (25,000)
Impact Fees (166,518) -
Water Enterprise Fund (507,303) (318,364) Water Tax Lopez State - 142,450 Water Construction Fund - -
Wastewater Treatment Fund 48,831 (110,358) Wastewater Capital Projects - - Pier Enterprise Fund - (14,000) Parking Enterprise Fund (52,403) (108,657) Technology Service Fund (60,251) 67,500 Motor Vehicle Fund 454,190 (667,843) Payroll Clearing (1,000,000) -
Total All Funds 1,277,848$ (1,721,153)$
Ongoing vs One-
time Fiscal
Impact
Fiscal Impact: negative
amounts reflect
additional costs or
reduced revenues, and
positive amounts
reflect reduced costs
or additional revenues
Ongoing/ One-time
FY 2026 Proposed
Budget Adjustment
Fiscal Impact
FY 2027 Proposed
Budget Adjustment
Fiscal Impact
One-time 1,081,145.24$ (2,014,788.00)$
Ongoing 196,703.24 293,635.03
Total Fiscal Impact 1,277,848.48$ (1,721,152.97)$
Recommendation
•Staff recommends that the City Council adopt a
resolution (Attachment 1) approving and appropriating
budget adjustments for FY 2026 and FY 2027.