Pacifica Fights $2.3M Budget Gap as Businesses Rally Against Worst-in-Nation Ranking

The Pacifica City Council's May 11 meeting laid bare the financial squeeze facing this coastal city — a $2.3 million structural deficit requiring department-by-department cuts — while also showcasing the fierce community pride that makes Pacifica unlike anywhere else on the Peninsula. More than 30 small businesses launched a creative counteroffensive against a national ranking that branded their city dead last for entrepreneurship, the council pressed SamTrans for real transit commitments before endorsing a half-cent sales tax, and strategic plan updates locked in priorities that will shape every budget dollar this summer.

• $2.3M structural deficit confirmed as departments prepare 5% reduction options ahead of the June 8 budget hearing

• Over 30 businesses launch "Project 1334" with $13.34 specials to reclaim Pacifica's identity after WalletHub ranked it the worst U.S. city to start a small business

• Vice Mayor Wright demands SamTrans name specific Pacifica projects before the council backs a potential half-cent sales tax (SB 63 - Connect Bay Area Act)on the November ballot

• Council adopts 25% tree canopy goal and elevates interim housing solutions in updated strategic plan

• Peninsula Clean Energy rebrands to Westlight Energy after saving Pacifica residents $5.7 million over a decade

Pacifica Stares Down a $2.3M Deficit

The basics: Staff presented the FY 2026-27 base budget — a snapshot of what it costs to maintain current services at next year's prices, not a finished spending plan. General fund revenues of $53.2 million are essentially flat while expenditures hit $57.1 million, a 3.5% jump driven by negotiated salary and benefit increases, rising pension unfunded liability, health insurance, and workers' compensation costs.

Why it matters: Even after applying $1.6 million in assumed salary savings from vacant positions, the city faces a $2.3 million gap — roughly 4% of operating expenditures. Departments have been told to bring approximately 5% in reduction options to the June 8 study session, giving City Manager Sean Charpentier flexibility to build a recommended budget. Those cuts will directly affect services, staffing, and community programs.

Where things stand: Personnel costs account for $39.1 million across 202.25 full-time equivalent positions citywide. Revenue-side risks compound the picture: transient occupancy tax revenue has dropped $200,000 as short-term rental bookings trend down, despite a new voluntary remittance agreement with VRBO and HomeAway. A potential $3.7 million shortfall in state vehicle license fee payments looms, backstopped by only $1.06 million in reserves. And Measure A and W street fund transfers are declining because allocations track population — and Pacifica's population is shrinking.

"I just want the community to understand we're asking staff to do more with less, and they do it and they come through for us," said Vice Mayor Greg Wright.

Wright emphasized that city employees are already paid 13–15% below comparable jurisdictions.

Capital projects: The five-year capital improvement program includes a $5.5 million Manor Drive overcrossing (mostly grant-funded), ongoing pavement rehabilitation, ADA improvements, and extensive wastewater system work. The Vallemar sewer replacement project is pursuing a Water Infrastructure Finance and Innovation Act (WIFIA) loan. A new $50,000 general fund economic development pilot was also introduced.

The other side: Public commenter Kimberly Finelli urged equitable cuts that don't disproportionately affect seniors, children, and low-income residents. She suggested the council explore a financing task force similar to one convened in 2017 and examine whether contracting with the San Mateo County Sheriff's Office — as Millbrae and Half Moon Bay have done — could reduce public safety costs.

What's next: The budget hearing is scheduled for June 22, with a recommended budget expected at the June 8 study session. Every strategic priority adopted earlier in the evening will constrain which cuts are on the table and which are off-limits.

30+ Businesses Turn Humiliation Into a Movement

Why it matters: When WalletHub ranked Pacifica No. 1,334 out of 1,334 cities for starting a small business, it generated CBS News coverage and the kind of national attention the city hasn't seen since images of houses falling into the ocean went viral in 1997. Business owners showed up in force to say the ranking is wrong — and to do something about it.

Where things stand: Jennifer Christiansen of Art Space on the Coast announced Project 1334, a grassroots campaign in which more than 30 businesses have each created a special item priced at exactly $13.34.

"Each of us are creating a special item for sale, priced at exactly 13, turning the WalletHub ranking into a symbol of where we actually are in the community," she said.

Robby Bancroft of Breakers and Shore Shack, recently named Regional 2026 Small Business Person of the Year by the SBA alongside his father Steve, spoke about mental health awareness among small business owners and urged the Pacifica Chamber of Commerce to collaborate with the Economic Development Committee on promotion.

Beth Lemke of Grape in the Fog reflected on 16 years of operating a wine bar in what she called a "coastal bedroom community." Tyler Martinez of Pacifica Thai Cuisine honored the late co-founder Thirawath Hlawphakdi (Tom). Ed Ochi, Economic Development Committee Member speaking as a member of the public, warned the ranking causes lasting reputational damage, comparing it to the 1997 cliff erosion images that still define Pacifica in the national imagination.

Council response: Councilmember Mary Bier read the proclamation. Councilmember Sue Beckmeyer recalled the community's pandemic-era mutual support networks and said the ranking "did not reflect how beautiful our community is."

Mayor Christine Boles rallied the room:

"This 1334 project, we're going to take it back and we're going to show those expletive, expletive people who we are here in Pacifica."

Council Presses SamTrans: What Does Pacifica Get?

The basics: Jessica Epstein, Director, Government and Community Affairs at SamTrans, presented the Connect Bay Area Act (SB 63), a potential 14-year half-cent sales tax headed for the November ballot as a citizens' initiative requiring a simple majority to pass. If approved, the measure would generate approximately $50 million annually in San Mateo County return-to-source funds for locally administered transit investments. SamTrans faces an approximately $30 million per year operating deficit starting around 2028.

Why it matters: Pacifica's sales tax rate already stands at 9.875%. The city has the county's lowest pavement condition index at 50, compared to a 71 county average. Only 4% of residents use public transit, while 62% drive alone. The city's housing element assumes transit access that doesn't yet exist — and there is no direct bus service to Skyline College.

Where things stand: Vice Mayor Greg Wright repeatedly pressed Epstein for concrete, Pacifica-specific commitments.

"I'm just looking for a reason to be able to say, yeah, Pacificans should vote for this," he said. "We should support public transit and be able to tell them what are we getting here in Pacifica."

Wright also put the city's road crisis in stark terms:

"We have an $85 million hole in our streets that is in desperate need of attention. We are literally the worst city in the county for streets. $100,000 won't do a block. So for us it's almost insulting to offer us $100,000."

Epstein acknowledged the frustration but could not promise specific projects, saying,

"We're very aware of the concerns that have been raised and reflected back to the board."

Mayor Christine Boles highlighted the transit desert facing students:

"If you're coming from Lindemar... you have to get to the park and ride. But to get from the park and ride, it's an hour and 45 minutes. You have to go all the way to Daly City and then all the way back."

The other side: Public commenters were split. Rick Nahas argued the coast's 60,000 residents are a geographically underserved community.

"SamTrans says the coast doesn't deserve better public transit because of low ridership. That's been a consistent message in the past five years," he said.

Nahas added that the agency and its board members uses ridership data "as cover" to do nothing. He noted Pacifica has rejected $400,000 in transportation planning grants over the past five years.

Jessica Shepherd took the opposite approach, urging the council to support the measure even though it's imperfect, arguing that transit access is essential for residents who feel "trapped" without a car — and noting gas at $6.49 per gallon. Sue Digre, a former councilmember, recalled past shuttle programs that failed due to poor marketing and urged aggressive promotion for any new service.

Councilmember Sue Beckmeyer connected transit to aging:

"The whole idea of aging in place is not to stay put in your house, it's to get around to the community center, to get around to shopping, to get around to go have lunch with friends."

What's next: The SamTrans board will vote on a local investment framework June 3 — the next opportunity for Pacifica to influence how funds would be allocated before the measure potentially reaches voters in November.

Strategic Plan Locks In Tree Canopy, Housing, and Revenue Priorities

Why it matters: The 2023–2030 strategic plan, updated with input from a March 7 workshop, sets the guardrails for every budget and staffing decision. What's in the plan shapes what departments can propose; what's out stays on the shelf.

Where things stand: Facilitator Greg Larson walked the council through proposed changes across all five goals. Key decisions:

• Housing and homelessness: The council revised language to "prioritize housing element program implementation and interim housing solutions" — changing "including" to "and" to elevate interim housing, including safe parking, as a co-equal priority. A new top strategy was added to "identify and advance viable affordable housing projects."

• Urban forestry: The council adopted a 25% urban forest canopy goal, up from an estimated 17% today, and directed revision of tree ordinance language that Councilmember Sue Beckmeyer called a loophole regarding tree health determinations. "I think we need to be really specific about this or we're never going to stop hearing about it," she said. "The community has made a very clear fine point about what they would like to see." Public commenters Gail Benton Shoemaker and Cindy Abbott both reinforced the tree canopy request.

• Revenue and operations: The plan retained highlighted language about exploring cannabis and tobacco licensing revenue and analyzing whether to bring building official and plan check services in-house.

• Community engagement: The word "harness" was changed to "creatively engage" regarding community expertise, per public comment, and "local and regional" was added to the commission coordination strategy.

• Library: Moved from the infrastructure goal to the communications goal but retained in the plan.

Decisions: The strategic plan was adopted on a motion by Vice Mayor Greg Wright. The vote to extend the meeting to 11:30 p.m. passed 4-0 with Councilmember Mayra Espinosa abstaining.

Clean Energy Milestone: $5.7M Saved, New Name Coming

Why it matters: Pacifica residents have saved $5.7 million on electricity bills since Peninsula Clean Energy launched in 2016 — roughly a week of free electricity per year, according to staff — and they didn't have to do anything to enroll.

Where things stand: Shawn Marshall, CEO of Peninsula Clean Energy, presented a 10-year update on the community choice energy agency, which has delivered more than $230 million in customer savings region-wide and is targeting 100% renewable energy by 2030. For Pacifica specifically, a $476,000 member agency energy grant is funding EV charging stations at City Hall, the corporation yard, and the community center, along with battery backup at civic and community center solar projects.

"People don't have to sign up because part of the way the law is written in our state is that people are enrolled because the city decided 10 years ago to participate," she explained.

The agency is rebranding from Peninsula Clean Energy — frequently confused with PG&E — to Westlight Energy, effective July 2025. The JPA amendment was approved on the consent calendar. Marshall also highlighted a $10,000 zero-interest electrification loan available to all customers, repaid over five years on PG&E bills, and a forthcoming residential solar-and-battery program with preferred pricing.

Minor Items

• Consent calendar passed unanimously (For: 5, Against: 0, Absent: 0), including the Peninsula Clean Energy JPA name-change amendment and an Oceana Bike Lanes feasibility study. Motion by Councilmember Beckmeyer, second by Vice Mayor Wright.

• Wildfire Preparedness Month proclaimed for May 2026. Cal Fire's updated high-fire-hazard maps now cover areas within Pacifica, and 2026 expedited Zone Zero ember-resistance requirements apply to homes in those zones.

• EMS Week (May 17–23) proclaimed, marking the 57th anniversary.

• Public Works Week (May 17–23) proclaimed. Councilmember Beckmeyer highlighted the award-winning wastewater treatment plant. A public works open house is scheduled for May 20 at the corporation yard.

• Pacifica Resource Center executive director Anita Reese reported 106 unhoused individuals in the city (slightly down), including 22 in the Safe Parking program. Grocery distribution funding ends in October 2026. Back-to-School program enrollment begins May 27; Pama Palooza fundraiser set for Sept. 12.

• Two 7th graders from Ingrid B. Lisi Middle School, Jenna and Jerry, delivered a detailed climate change presentation urging council action on sea level rise, wildfires, and air quality.

• County Supervisor District 3 candidate Joaquin Jimenez advocated for improved wayfinding signage throughout Pacifica to direct visitors to local businesses.

• New City Manager Sean Charpentier attended his first meeting after a week of onboarding that included advocacy trips to Sacramento.

• The council voted unanimously (For: 5, Against: 0, Absent: 0) to extend the meeting to 11:45 p.m. to complete the budget presentation.