City council approves grant allocations, reviews quarterly financial report
Federal limits shape awards for local service organizations
– Paso Robles City Council met Tuesday night for its regular meeting at its temporary location at Centennial Park.
Proclamation honoring Loyd’s Aviation
The meeting opened with a proclamation recognizing Loyd’s Aviation staff for their lifesaving response to an Oct. 29 aircraft accident at the Paso Robles Airport. Employees Thomas Malesza, Cole Duveneck, Alwin Mendoza, and Patrick Meisser immediately responded to the scene, provided first aid, and coordinated emergency assistance, actions credited with saving the injured pilot’s life. Mayor John R. Hamon Jr. presented the proclamation.
Consent agenda
Councilmember Chris Bausch pulled Item 3, and Mayor John Hamon pulled Item 4 from the consent calendar for separate discussion. The remaining items were approved unanimously.
2026 Community Development Block Grant allocations
The council held a public hearing on the 2026 Community Development Block Grant (CDBG) program and unanimously approved the city’s draft funding plan.
For public facility projects, the city will receive $168,858. The council directed the full amount to the 24th Street crosswalk project. That project will install a new crosswalk, two curb ramps and a rectangular rapid flashing beacon on 24th Street between Riverside Avenue and Highway 101, replacing a non-compliant crossing near the fairgrounds. CAPSLO’s Home Repair Program, which requested $48,750 for minor home repairs and accessibility modifications for low-income households, was not funded.
For public service allocations, total requests were $60,467, but federal rules limit the city to $38,967. The council approved splitting the full amount between the two applicants. El Camino Homeless Organization (ECHO) requested $38,967 and will receive $19,484 to support shelter operations and case management services. CAPSLO requested $21,500 for its Adult Day Center and will receive $19,483 to support day services for seniors with cognitive impairments.
The plan also includes $18,185 for city administration of the CDBG program. Under an existing agreement, 13 percent of the city’s allocation is passed through to San Luis Obispo County for its administrative responsibilities. The total projected CDBG program amount is $226,010. The Draft Annual Action Plan is exempt from the California Environmental Quality Act.
The item passed unanimously on a motion by Councilman Steve Gregory, seconded by Councilwoman Kris Beal.
Quarterly financial and budget report
The council received and filed the quarterly financial report for the first quarter of fiscal year 2025–26 and approved associated budget amendments on a 4–1 vote, with Bausch voting no.
Staff reported that General Fund revenues remain stable but are growing more slowly than in past years. Sales tax, property tax, and transient occupancy tax revenues totaled $35.6 million in fiscal year 2021–22 and $37.2 million in fiscal year 2024–25. For 2025–26, they are projected at $38.7 million. Sales tax growth is constrained by statewide economic conditions.
Property tax remains strong, with the city’s assessed value increasing 4.97 percent, driven by ownership changes, the Proposition 13 inflation factor, and nonresidential construction, including improvements at the Ava Hotel, the future Residence Inn on South Vine Street, and the Paso Robles Inn. Transient occupancy tax has flattened since the post-pandemic rebound.
General Fund expenditures total $56.6 million after carryovers. First-quarter spending was 17 percent of appropriations, and year-end expenditures are projected at 96.4 percent. Fiscal year 2024–25 ended with $19.1 million in reserves, and the city anticipates ending the current year with reserves at about 31 percent, consistent with policy.
Approved budget adjustments totaled $1,858,753. They include writing off a $679,939 long-term loan from the General Fund to the Parking Fund tied to the discontinued downtown parking program; appropriating $300,000 for costs associated with a Settlement and Release Agreement involving the Tribune and Bausch, plus related City Attorney costs; reimbursing $838,753 in Police Development Impact Fees used for 4301 Second Wind Way, now occupied by Public Works and Administrative Services rather than police facilities; and adding $40,000 from Measure I-24 funds for additional construction needs on the pedestrian and bicycle project near Flamson Middle School.
Measure J-20 and I-24 supplemental sales tax funds continue to support public safety and road projects. This year’s budget includes seven new public safety positions—three firefighters, three fire engineers and one Community Action Team police officer. The new staffing enabled the city to reinstate a dedicated paramedic squad in November 2025 and expand Community Action Team coverage to seven days a week. The city currently has 15 active road projects with more than $37 million in unexpended appropriations.
Surplus land designation
The council returned to Item 3 and voted 4–1, with Bausch voting no, to declare a 71,874-square-foot city-owned parcel near 1910 Riverside Ave. (part of APN 008-254-003) as non-exempt surplus land under the state Surplus Land Act. The property is no longer needed for city purposes. The city also leases an adjacent 247,856-square-foot parcel used as a public park, but that property was sold to the 16th District Agricultural Association in 2024 and will cease functioning as a park in March 2027, leaving only the existing skate facility and restrooms.
The city attempted to sell the remaining parcel to the Pioneer Museum Foundation in 2019 and 2021, but the plan did not proceed, and the state has confirmed no Surplus Land Act exemptions apply. Declaring the property surplus requires the city to issue a Notice of Availability to affordable-housing developers and eligible public agencies. Interested parties will have 60 days to respond, and the city must enter at least 90 days of good-faith negotiations if interest is expressed. The action is exempt from CEQA because no development is being approved.
Airport branding contract
The council revisited Item 4 regarding logo and branding work for the Paso Robles Municipal Airport. After discussion about whether costs could be reduced, the council approved the contract 4–1, with Hamon voting no.
The city issued a request for proposals on May 19, 2025, and received 26 submissions. A review panel of airport staff and Airport Commissioners evaluated the proposals and interviewed three finalists. On Oct. 23, 2025, the Airport Commission unanimously recommended hiring Lowercase Productions.
The contract, not to exceed $36,836, is funded in the airport budget and will provide a new airport logo, digital design standards, and adaptable files for use on signage, marketing materials, and future spaceport-related branding. The design process will include opportunities for input from airport stakeholders, the Airport Commission, and the City Council before final adoption.
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Watch the full meeting streamed on YouTube below:
