ADMINISTRATIVE REPORT
MEETING DATE: June 25, 2025 AGENDA CATEGORY: Deferred Business TO: Honorable Mayor and City Council
FROM: Christian Clegg, City Manager
DATE: June 25, 2025
SUBJECT: Fiscal Year 2025-26 City Budget
1. Resolution Approving and Adopting the Operating and Capital Improvement Budgets for the City of Bakersfield, CA for the Fiscal Year 2025-26
2. Resolution Establishing the City of Bakersfield Appropriations Limit for Fiscal Year 2025-26
3. Resolution Approving and Adopting the Master Fee Schedule for the City of Bakersfield, CA for the Fiscal Year 2025-26
RECOMMENDATION:
Staff recommends adoption of the Resolutions.
BACKGROUND:
This administrative report and three items before the City Council are related to the adoption of the Fiscal Year 2025-26 City of Bakersfield operating and capital improvement budgets and Master Fee Schedule.
The first item is a resolution adopting the FY 202 5-26 budget, totaling $8 52,717,360. The budget is comprised of the operating budget, including transfers, totaling $7 65,248,355, and the capital improvement budget totaling $ 87,469,005. The proposed budget reflects the funding of the City’s operating cost, including $114,960,000 in Bakersfield Public Safety and Vital Services (PSVS) Measure appropriations and funding of various capital improvements for the 2025-26 fiscal year.
The second item is a resolution adopting the Fiscal Year 2025-26 appropriations limit of $621,517,953 as part of the budget adoption process for Council consideration. The City’s appropriations are subject to the limit total of $330,701,195. Therefore, the proposed appropriations are significantly below the maximum limit allowed by State law.
The appropriations limitation imposed by Proposition 4 (1979) and later amended by Proposition 111 (1990) creates a restriction on the amount of government revenue that may be appropriated in any fiscal year. The appropriations limit applies only to those revenues defined as “proceeds of taxes,” such as property tax, sales tax, and transient occupancy tax. The appropriations limit is based on actual appropriations during the base year (1986 -87) and increases each year using specified growth factor s.
According to the Revenue and Taxation Code, Section 7910, local governments must establish their appropriations limit by resolution each year at a regularly scheduled meeting or a properly noticed special meeting. During any fiscal year, a government entity may not appropriate any proceeds of taxes received more than the appropriations limit.
The appropriations limit is different for each agency and the limit changes each year. For calculation purposes, the appropriations limit from the previous fiscal year is increased based on population growth and inflation factors as provided by the State Department of Finance.
The third item is a resolution adopting the FY 2025-26 Master Fee Schedule.
In addition, CalPERS requires all member agencies to have a publicly available pay schedule. The City has historically made this information available within its adopted budget document and on the City's website.
The requirement provides that the governing body of public agencies approve and adopt this schedule at a regularly scheduled public meeting. Therefore, the approval of this item is necessary to comply with CalPERS regulations. The attached schedule reflects the most current pay schedule for all positions, inclusive of any rate adjustments as a result of previously approved labor processes.
FISCAL IMPACT:
Adoption of the Fiscal Year 2025 -26 City Budget authorizes expenditures necessary to support citywide operations, services, and capital improvement projects. The proposed budget is balanced and aligns available re sources with projected expenses while maintaining compliance with State appropriations limits. The budget also includes continued investment in public safety, infrastructure, and other priority services identified by the City Council.
COUNCIL GOAL:
Innovative and Efficient City Government
ATTACHMENTS:
1. FY2025-26 Operating and CIP Budget Adoption Resolution
2. FY2025-26 Budget Adoption Resolution EXHIBIT “A”
3. FY2025-26 Gann Limit Appropriations Limit Resolution
4. FY2025-26 Gann Limit Appropriations Limit Resolution EXHIBIT “A”
5. FY2025-26 Bakersfield Salary Schedule Effective June 30, 2025
6. FY2025-26 Master Fee Adoption Resolution
7. FY2025-26 Master Fee Adoption Resolution Exhibit A