Item No. 4
Town of Atherton
CITY COUNCIL STAFF REPORT – CONSENT AGENDA
TO: HONORABLE MAYOR AND CITY COUNCIL
GEORGE RODERICKS, CITY MANAGER
FROM: ROBERT BARRON III, ASSISTANT CITY MANAGER/FINANCE
DIRECTOR
DATE: FEBRUARY 18, 2026
SUBJECT: ADOPT THE ATTACHED BUDGET AMENDMENT RESOLUTION FOR THE FY 2025/26 BUDGET
RECOMMENDATION
Adopt the attached Resolution authorizing a Budget Amendment for the FY 2025/26 Budget.
BACKGROUND
Staff presented the Mid-Year budget review for the General Fund FY 2025/26 at its February 4, 2026 Study Session. Staff noted that the FY 2025/26 Report presents a high-level summary of the current-year expenditures, projected year-end results, and identifies notable issues that may affect the upcoming budget cycle. The budget reflected the Town’s positive financial outlook while maintaining City Council priorities. The FY 2025/26 Mid-Year Budget Report provided the Council with information about the status of the Town’s financial condition at the half-way point in the Fiscal Year.
At mid-year, total FY 2025/26 revenues are projected at $27.72m, representing an increase of $515,774 over the $27.2m in the Adopted Budget. This increase is primarily attributable to higherthan-anticipated ERAF revenues, charges for services, and other miscellaneous revenue. The FY 2025/26 Mid-Year Budget Report projected expenditures at $22.74m. This is an increase of $322,500.
The Council discussed revenue and expenditure summaries across all departments. The VLF in Lieu revenues continue to be closely monitored due to recurring shortfalls in State payments. For FY 2025/26, staff now anticipates a reduction of approximately $524,000 in VLF-related revenues. Staff advised that there were several areas that required a Mid-Year Budget Amendment totaling $322,500. Most items identified are one-time expenditures for computer equipment and system backup upgrades, operations facility upgrades for park rental use and tree maintenance/removal at the park; and one-time priority contract revenue adjustment due to Mid-year Budget Staff Report
February 18, 2026
amended agreement. The FY 2025/26 Mid-Year adjustment is spread across the four identified areas as noted in Exhibit A.
The Council approved the adjustments and staff advised that a Budget Amendment Resolution would be returned for approval on the February Consent Agenda.
POLICY FOCUS
Staff is presenting a Budget Amendment Resolution for adoption to reflect the noted adjustments.
FISCAL IMPACT
The overall fiscal impact to the General Fund due to Mid-Year adjustments is a General Fund Net expenditure increase of $322,500 (1.4%) against a General Fund (plus ERAF) revenue increase of $515,774 (1.8%).
GOAL ALIGNMENT
Goal A- Maintain Fiscal Responsibility
PUBLIC NOTICE
Public notification was achieved by posting the agenda, with this agenda item being listed, at least 72 hours prior to the meeting in print and electronically. Information about the project is also disseminated via the Town’s electronic News Flash and Atherton Online. There are approximately 1,200 subscribers to the Town’s electronic News Flash publications. Subscribers include residents as well as stakeholders – to include, but be not limited to, media outlets, school districts, Menlo Park Fire District, service provides (water, power, and sewer), and regional elected officials.
ATTACHMENT
Resolution of the City Council of the Town of Atherton Approving Mid-Year FY 2025/26 Budget Adjustment