The City Council recently adopted the City’s new Biennial Budget for FY 2021-22/ FY 2022-23. The total proposed City budget is $24,087,756 in FY 2021-22 and $18,538,906 in FY 2022-23. Of these amounts, the total proposed General Fund is $8,766,374 in FY 2021-22 and $9,099,482 in FY 2022-23. All budgets are balanced and make progress toward accomplishing each of the major budget goals/priorities that were approved by the City Council in the first step of the budget process.
Budget priorities include the following:
- Pay off remaining debt in the General Fund.
- Maintain and expand implementation of measures in the Comprehensive Plan to End Youth Violence.
- Expand maintenance and upgrade of the City’s streets, sidewalks, wastewater system, and parks.
- Attract new businesses and construct the Downtown Plaza project and other improvements designed to revitalize the downtown area.
- Add multi-family market rate, affordable and seasonal employee housing units to address housing needs.
- Continue efforts to pursue grants to fund high priority projects and programs designed to improve overall quality of life in the community and to meet community needs.
- Continue efforts to improve City processes to increase efficiency and customer service.
The most significant item of this budget is that it is projected to repay the remainder of the negative fund balance in the General Fund. The last time the City had a positive General Fund balance was in 2005. Therefore, this represents a major accomplishment for the City.
Other highlights of the General Fund include the following:
- Addition of a full-time Public Works Director position
- Addition of one full-time Public Works Maintenance Worker position
- Funding to contract maintenance of specialized landscaped areas
- Increase in funding for Public Works and Parks repairs
- Redesign of the City’s website to provide more online services
- Fire Department equipment purchases
The budget also includes an extensive list of major projects funded primarily from grants and other funding sources. Major items include increased funding for the annual Street Improvement Program, construction of the Citywide Sidewalk Improvement Project, design and planning for the Multimodal Transportation Center, paving of the taxiway at Mesa Del Rey Airport, Lynn Street sewer line, Phase I expansion of corner bulbouts in the downtown area, and installation of solar streetlights on Jayne Street.
One of the most important components of the Biennial Budget is the Long Range Financial Plan. In this budget, two scenarios are presented. Scenario I is the Base Plan, which provides a 10-year projection of existing revenues and expenditures. This plan projects that recommended expenditures can be sustained over the next 10-year period while accumulating a reserve up to 12% of the General Fund. Scenario II forecasts costs to address deferred maintenance and other high priority unfunded costs. These items include needed City facility repairs, street improvements, public safety enhancements, maintenance of new parks, and Public Works staffing.
To fund these needs, the plan includes an option of a measure on the 2022 ballot to increase sales tax by an additional ½ cent. The following are comparisons of the City’s sales tax to other cities in the area:
Greenfield 1 ¾ cents
Atascadero 1 ½ cents
Carmel 1 ½ cents
Del Rey Oaks 1 ½ cents
Grover Beach 1 ½ cents
Marina 1 ½ cents
Monterey 1 ½ cents
Morro Bay 1 ½ cents
Pacific Grove 1 ½ cents
Paso Robles 1 ½ cents
Salinas 1 ½ cents
San Luis Obispo 1 ½ cents
Seaside 1 ½ cents
Soledad 1 ½ cents
Arroyo Grande 1 cent
Gonzales 1 cent
Pismo Beach 1 cent
Sand City 1 cent
King City 1 cent
The City would like feedback on the long-range financial plan. You may contact City Hall at 831-385-3281 or email email@example.com. A copy of the budget can be accessed at: