City Council Meeting
February 17, 2026
FY2025-26 Mid-Year Budget
Mid-Year Budget Process
Fund Types
General Fund (City’s Main Operating Fund)
Enterprise Funds (Water, Sewer, Recycled Water)
Internal Service Funds (Building Maintenance, Fleet, IT, Legal) Special Revenue Funds (Gas Tax, LLAD, Grants, Measure T, Measure A) Desired Outcomes
Balanced GF Operating budget
Continue to meet Reserve Requirements
Long-Term Fiscal Sustainability for all Funds
2 FY 2025-26 Mid-Year Budget Amendment
Finance Committee – Receive and discuss the FY 2025-26 Mid-Year Budget Adjustment Proposals Fund Types
General Fund (City’s Main Operating Fund)
Enterprise Funds (Water, Sewer, Recycled Water)
Internal Service Funds (Building Maintenance, Fleet, IT, Legal) Special Revenue Funds (Gas Tax, LLAD, Grants, Measure T, Measure A) Desired Outcomes
Balanced GF Operating budget
Continue to meet Reserve Requirements
Long-Term Fiscal Sustainability for all Funds
3 FY 2025-26 Mid-Year Budget Amendment
Original Adopted Budget FY2025-26
Current Adjusted Budget
FY2025-26
Proposed Amendments
Proposed Amended Mid-Year Budget FY2025-26
Revenues
$32,672,908
$32,672,908
$873,452
$33,546,360
Expenditures
$32,672,908
$32,876,514
$669,846
$33,546,360
Net Operating Surplus
$0
($203,605)
$203,606
$0
4 General Fund FY 2025-26 Mid-Year Budget
5 GF Adjustments at Midyear
Revenues (+873k)
Expenditures (+670k)
$160,000 Legal Revenue from Water Enterprise
$168,663 GF Payment to Legal ISF
$150,000 Sales Tax
$160,000 Legal Expenses reimbursed by Water Enterprise
$ 97,500 Developer Billing Contributions (offset by expenses) $128,000 Parks Maintenance
$ 50,680 Parks & Recreation
$ 75,000 Developer Billing
$ 50,000 Property Taxes
$194,000 Reduction in Insurance Premium
$ 50,000 Encroachment Permit
$285,000 Streets Maintenance
$285,000 Transfer in from Measure U
6 General Fund FY 2025-26 Fund Balances
Estimate at Adopted FY2024-25
(June 2024)
ACFR
FY2023-24
(December 2024)
Proposed
Mid-Year FY2024-25
GF Contingency
$7,911,918
$8,299,184
$8,206,958
All Other
$1,603,408
$1,179,405
$1,179,405
Unassigned
$1,006,271
$2,083,402
$1,968,259
Total
$10,521,597
$11,561,991
$11,354,622
Continue to fund GF Contingency Reserve at target of 25% of GF Expenditures ($8.2M)
7 General Fund FY 2024-25 Fund Balances
+$833k
FY2024 ACFR Results
+$1.04M
8 Sales Taxes - $3.8M
Last Year Business and Industry was 39% of Revenue
9 10
11 FY2024-25 Midyear Budget $32.8M
Current Amended
FY2025-26
Proposed Adjustments
Proposed FY2025-26 Mid-Year
Revenues
$15,312,864
$2,042,141
$17,357,137
Expenditures
$22,183,734
$1,868,110
$24,051,844
Surplus (Shortfall)
($6,870,869)
($6,694,707)
12 Special Revenue Funds FY2025-26 Mid-Year
Current Amended
FY2025-26
Proposed Adjustments
Proposed FY2024-25 Mid-Year
Revenues
$47,532,002
$331,902
$47,863,904
Expenditures
$49,962,058
$1,764,000
$51,726,058
Surplus (Shortfall)
($2,430,054)
($1,003,518)
13 Capital Projects Funds FY 2024-25 Mid-Year
Expenditures
$1.5M CIP – PR26-0100 Wetlands Restoration and Accessibility Project $227k Parks Impact
Current Amended FY2025-26
Proposed Adjustments
Proposed FY2025-26 Mid-Year
Revenues
$12,001,387
$198,715
$12,200,102
Expenses
$16,949,064
$129,392
$17,078,456
Net Income
($4,947,677)
($4,878,354)
14 Water Enterprise Operations MY 2025-26
15 Current Amended FY2025-26
Proposed Adjustments
Proposed FY2025-26 Mid-Year
Revenues
$7,636,453
($749,013)
$6,887,440
Expenses
$5,044,704
$0
$5,044,704
Net Income
$2,591,749
$1,842,736
16 Water Enterprise FY 2025-26 Mid-Year
Current Amended FY2025-26
Proposed Adjustment
Proposed FY2025-26 Mid-Year
Revenues
$6,796,586
$0
$6,796,586
Expenses
$9,756,178
$53,289
$9,809,467
Net Income
($2,959,592)
($3,012,881)
17 Wastewater Enterprise Operations MY 2025-26
Current Amended FY2025-26
Proposed Adjustment
Proposed FY2025-26 Mid-Year
Revenues
$5,978,440
($471,880)
$5,506,560
Expenses
$5,763,222
$0
$5,763,222
Net Income
$215,218
($256,662)
18 Wastewater Enterprise FY 2025-26 Mid-Year
19 Current Amended FY2025-26
Proposed Adjustments
Proposed FY2025-26 Mid-Year
Revenues
$450,000
$450,000
Expenses
$1,279,268
($17,762)
$1,261,506
Net Income
($829,268)
($811,506)
20 Recycled Water Enterprise FY 2025-26 Mid-Year
Current Amended
FY2025-26
Proposed Adjustments
Proposed FY2025-26 Mid-Year
Revenues
$3,897,948
$281,587
$4,179,535
Expenses
$4,139,276
$468,456
$4,607,732
Net Income
($241,328)
($428,197)
21 Internal Service Funds FY 2025-26 Mid-Year
22 23
Questions?