Lompoc budget workshop: staff outlines draft operating budget, enterprise fund pressures and options for streets maintenance

Management Services Director Christy presented the city’s draft operating budget and enterprise fund outlook at the Lompoc City Council’s May 27 budget workshop, warning of multi‑year pressures in several enterprise funds and outlining choices for street maintenance, staffing and capital projects.

Christy told the council that the water fund is projected to run operating deficits without changes to rates or service levels — an estimated net operating shortfall of about $1.7 million in fiscal year 2026 and $1.9 million in fiscal year 2027, figures she said are covered by existing fund balance but present ongoing concern. She also identified capital and debt entries that affect the appearance of year‑to‑year operating results and warned that reported operating totals in the presentation differ from final audited statements because of closing entries that move capital purchases to the balance sheet.

Why it matters: Several enterprise funds — water, electric, wastewater and solid waste — face near‑term capital and operating pressures that could require rate actions, debt financing or reallocation of reserves. Council discussion focused on how to balance short‑term pothole repairs and responsiveness with cost‑effective large paving projects that generate bigger PCI (pavement condition index) gains per…