FISCAL YEAR 2025-26 BUDGET
MID-YEAR REVIEW
City Council Meeting
February 24, 2026
2 EXECUTIVE SUMMARY
FINANCIAL RESULTS
FISCAL SUSTAINABILITY
FINANCIAL OUTLOOK
RECOMMENDATION
EXECUTIVE SUMMARY
2/24/2026 FY 2025-26 Mid-Year Budget 3
State takeaway of key revenue source
Slowdown in pipeline development
Need to maintain City services and infrastructure
Council resolutions requested
FINANCIAL RESULTS
4 GENERAL FUND
OVERVIEW
2/24/2026 FY 2025-26 Mid-Year Budget 5
Revenues
Year-end estimates are
4% over budget, mainly
due to $1.2M VLF
reimbursement
Expenditures
Year-end estimates are
contained within
budget, mainly due to
vacancy/turnover
savings
Local Economy
Leading indicators
mixed
Fund Balance
As of Dec. 31, the
balance is up $2.8M
from last fiscal year
GENERAL FUND
EXPENDITURES
IN MILLIONS
2/24/2026 FY 2025-26 Mid-Year Budget 6
FY 2025-26
Adjusted
Budget
Expenditures
as of Dec. 31 % of Budget
Personnel $20.3 $9.3 46%
Services &
Supplies $3.7 $1.5 42%
Admin &
Other $4.9 $2.4 50%
Major Est. Transfers
• Recreation
$1.8M
• Development
Services/General Plan
Maintenance
$1.7M
• Street Maintenance
$1.3M
• Storm Drainage
• $0.8M
FINANCIAL RESULTS BY FUND
IN MILLIONS
2/24/2026 FY 2025-26 Mid-Year Budget 7
Fund Revenues Expenditures
Ending
Balance
(Dec. 31)
General Fund (Excludes Measure I) 101 $15.2 $16.1* $33.6* Belmont Fire Protection District 223 10.2 11.6 30.1
Development Services 210 3.5 3.1 3.2
General Plan Maintenance 212 0.3 0.7 0.5
Recreation 205 0.9 2.1 (0.6)
Street Maintenance 231 0.5 1.4 1.1
Storm Drain 525 0.5 1.0 0.4
*Includes 50% of budgeted operating transfers anticipated at year-end $-
$2
$4
$6
$8
$10
$12
$14
$16
Actuals
Budget
Estimate
PROPERTY TAX REVENUE
2/24/2026 FY 2025-26 Mid-Year Budget 8
IN MILLIONS
$-
$1.0
$2.0
$3.0
$4.0
$5.0
Budget
Estimate
SALES TAX REVENUE
(1% BRADLEY BURNS)*
IN MILLIONS
2/24/2026 FY 2025-26 Mid-Year Budget 9
*Excludes Measure I (½-Cent) Tax
$-
$0.5
$1.0
$1.5
$2.0
$2.5
Budget
Estimate
SALES TAX REVENUE
(MEASURE I)
IN MILLIONS
2/24/2026 FY 2025-26 Mid-Year Budget 10
Measure I
takes effect
$-
$1.0
$2.0
$3.0
$4.0
$5.0
Budget
Estimate
HOTEL ROOM TAX REVENUE
2/24/2026 FY 2025-26 Mid-Year Budget 11
IN MILLIONS
TOT Rate
14% TOT Rate
12%
CAPITAL IMPROVEMENT
PLAN (CIP) UPATE
2/24/2026 FY 2025-26 Mid-Year Budget 12
• CIP Projects Completed
• Ralston Avenue Adaptive Signal
Control Technology System Project
• Library Interior Painting and
Flooring
• Belmont Creek Restoration Project
• Sewer Treatment
• Ongoing contributions
to SVCW for RESCU program
Sewer
46%
Streets
43%
FY 2025-26 Budgeted CIPs
Sewer Streets
Facilities Parks & Open Space
Technology
FISCAL
SUSTAINABILITY
13 STATE TAKEAWAY
2/24/2026 FY 2025-26 Mid-Year Budget 14
• Property tax in lieu of VLF continues to be underfunded, with the State refusing to meet its payment obligations
• Only 2/3 of the FY 2023-24 shortfall was reimbursed
• Future revenue shortfalls are projected
• FY 2024-25: ~$1.8M shortfall
(40% of Belmont’s Local 1% Sales Tax revenue)
• FY 2025-26: ~$2.5M shortfall
• FY 2026-27 and beyond: ~$2.5M-$6M shortfall annually
• City Manager group continues to work in conjunction
with the County
FINANCIAL OUTLOOK
15 PROJECTED GENERAL FUND
BALANCE (VLF SCENARIOS)
IN MILLIONS
2/24/2026 FY 2025-26 Mid-Year Budget 16
$(20)
$(10)
$-
$10
$20
$30
$40
Without VLF
With 100% VLF
33% Target
Without any assumed
additional revenue sources
and average CPI increases
GENERAL FUND BALANCE
COMPARISON
2/24/2026 FY 2025-26 Mid-Year Budget 17
IN MILLIONS
*June 30, 2025 data is not currently available, the amounts shown are as of June 30, 2024. **Belmont’s General Fund balance as of June 30, 2025 was $34M; Measure I Fund balance was $3.6M. $58
$120
$76
$38
$63
$120
$34
$0
$20
$40
$60
$80
$100
$120
$140
Burlingame San Mateo Foster City Belmont** San Carlos Redwood City*
Menlo Park
Measure I
General Fund
$7,542
$4,214
$5,085
$3,289
$5,598
$6,755 $6,540
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
Burlingame San Mateo Foster City Belmont Redwood
City
San Carlos Menlo Park
Local Transaction Tax/Measure I
Miscellaneous
Service Charges
Transient Occupancy Tax
Sales & Use Taxes
Property Tax
GENERAL FUND REVENUE
PER HOUSEHOLD
COMPARISON
2/24/2026 FY 2025-26 Mid-Year Budget 18
7-city average
of $5,575
*“Miscellaneous" includes Licensing Fees, Real Estate Transfer Tax, Licenses and Permits, Intergovernmental Sources, Fines and Forfeitures, Interest and Rent Income, and other.
Belmont’s General Fund balance excludes Measure I funding. Measure I revenue is shown in the chart for comparison purpose.
INVESTMENT POLICY UPDATE
2/24/2026 FY 2025-26 Mid-Year Budget 19
Reviewed annually by City Council
Proposed clean up verbiage consistent with CA
Government Code 53600 et seq.
Reference to investment tools allowed pursuant to
California Government Code Sections 53600 et
seq.
NEXT STEPS AND
RECOMMENDATION
20 NEXT STEPS
Key Challenges Ahead
2/24/2026 FY 2025-26 Mid-Year Budget 21
ECONOMIC & REVENUE UNCERTAINTY
NATIONAL POLITICAL AND ECONOMIC UNCERTAINTY
REVENUE STABILITY RISKS
STATE FUNDING UNCERTAINTY
DEFERRED CAPITAL NEEDS
AGING PUBLIC FACILITIES
STORM & DRAINAGE INFRASTRUCTURE
BALANCING CAPITAL AND OPERATING COSTS
REGULATORY & HOUSING PRESSURES
RISING COMPLIANCE COSTS
STATE HOUSING LAW IMPLEMENTATION
LONG-TERM FISCAL IMPACTS
Despite these challenges, the
City continues to be fiscally
responsible and invest in our
community through essential
programs, services, and
infrastructure improvements.
NEXT STEPS
2/24/2026 FY 2025-26 Mid-Year Budget 22
Continue
community
engagement to
identify service
priorities
Efforts underway
to update citywide
and development
fees to ensure
proper cost
recovery
Continued focus on
Financial
Sustainability
Strategic Focus
Area
RESOLUTIONS
2/24/2026 FY 2025-26 Mid-Year Budget 23
Revisions to capital improvement budgets
• Reflects updated project estimates/timelines
• Transfers revenues to CIP Project expenditure funds
Address actions previously approved by Council;
variances based on year-to-date estimates
Amend the FY 2025-26 Budgets:
• The City of Belmont
• Belmont Fire Protection District