Buellton staff outlines $27.7 million proposed citywide expenditures and CIP carryovers in midcycle budget study session

At a midcycle study session the Buellton City Council reviewed proposed FY 2026–27 budget amendments that staff will return to the council for adoption after edits.

Finance Director Chanel Zamore summarized the changes: total citywide expenditures are projected at roughly $27.7 million (operating about $19.6 million and capital improvements approximately $8.15 million). Zamore said updates to revenue assumptions included revised transient occupancy and property tax projections and that the draft budget shows a larger draw from reserves than previously assumed — roughly $3.3 million, an increase of about $1.5 million from the earlier projection.

Zamore described fund-specific changes: wastewater and water funds reflect rate adjustments that become effective July 1, 2026 and together increase charges for services; wastewater charges are projected to change by about $1.1 million in total services. She also identified other updates: reduced interest earnings because of lower investment balances; modest gas-tax and utility revenue adjustments based on California Cities reports; and a placeholder $30,000 low-income discount program tied to water/sewer rate changes.

The presentation included department-level operating changes (notably recreation and public works), program placeholders (a $50,000 split-cost recreation summer program and a $500,000 placeholder reflecting the council’s prior pledge to the Aquatics Foundation for the high-school pool), an anticipated increase to employer health‑premium contributions and several staff additions (a proposed full‑time accounting technician). Staff also highlighted potential migration to a cloud-hosted ERP (quote ~ $15,000 extra annually) and contract escalators tied to JPIA and outside consultants.

Capital projects were reviewed in detail as carryovers and active work: San Ynez River Trail ($225,000), design/permitting for Avenue improvements ($150,000), Riverview Park resurfacing ($80,000), Willson parking-lot phase two (~$985,900), a reservoir roof replacement ($750,000), McMurray water-treatment generator ($700,000) and a set of ongoing SCADA, master-plan and distribution improvements across water and wastewater funds. Staff emphasized many CIP line items are prior‑year carryovers and some are contingent on grants or future appropriations.

No public comments were received. Council members asked clarifying questions about how unspent capital projects are carried forward (staff confirmed uncompleted projects are typically moved to the next fiscal year) and gave direction for staff to bring the item back for formal adoption at a future meeting after corrections.

Why it matters: the midcycle adjustments refine near‑term revenue and spending assumptions, identify increased reliance on reserves, and lay out multi‑year capital work that will determine the city’s near‑term borrowing and grant needs.

What’s next: staff will update the packet per tonight’s clarifications and return the budget to council for formal adoption.