Brentwood City Council
June 23, 2026

JUNE 23, 2026, 7:00 PM

CITY COUNCIL/SUCCESSOR AGENCY AGENDA
CITY COUNCIL CHAMBERS, 150 CITY PARK WAY
TELECONFERENCE LOCATION:

UCSC, RACHEL CARSON COLLEGE
BUILDING RCA2, ROOM 2103B
1156 HIGH ST, SANTA CRUZ, CA 95064
*IMPORTANT NOTICE ABOUT PUBLIC COMMENTS AND MEETING PARTICIPATION* City Council Members will be participating from the Council Chamber. Members of the public are invited to attend and participate at: the Council Chambers, 150 City Park Way, Brentwood CA As a courtesy and technology permitting, members of the public may provide remote public comment during public hearings and on business items via the City’s Zoom Platform. However, the City cannot guarantee that the public’s access to teleconferencing technology will be uninterrupted, and technical difficulties may occur from time to time. In those instances, so long as the public may still attend the meeting in person, the meeting will continue. In addition, the Zoom participation option is provided to the public as a courtesy in order to facilitate participation. If Zoom participation is not enabled, the meeting will continue with public attendance in person only. Members of the public desiring to provide comments as a part of the meeting are encouraged to either submit written comments by 3:00 p.m. prior to the meeting or to attend the meeting in person.

Mayor Meyer will be participating remotely from a teleconference location at UCSC, Rachel Carson College, Building RCA2, Room 2103B, 1156 High Street, Santa Cruz, CA 95064. The remaining City Council Members will be participating from the Council Chamber.

HOW TO PARTICIPATE
The public is invited to participate in the City Council meeting using any of the following methods:

1. IN PERSON:
a. Members of the public can provide in-person comments in the Council Chambers. Members of the public are encouraged, but not required, to fill out a speaker card. The Council Chambers will have seating available for members of the public to attend in person up to full seating capacity.

2. REMOTE:
a. Zoom: www.brentwoodca.gov/vcc or Zoom Webinar ID: 760 1397 0037 b. Zoom Phone Numbers. Dial Toll Free: (833) 548-0276 or (833) 548-0282 or (877) 853-5247.
c. During the meeting, each period for public comment will be announced, and participants may use the “Raise Hand” feature on Zoom to request to speak. (If you need instructions on how to use this feature, please contact the City Clerk by noon of the meeting date at [email protected] or 925.516.5182.)

3. E-MAIL:
a. Public comments can also be submitted via e-mail to [email protected]. Any public comments received up until 3:00 p.m. of the meeting date will be:

1. distributed to the Council via email before the meeting,

2. posted online for public inspection at www.brentwoodca.gov/meetings and

3. later summarized in the meeting minutes.
b. As e-mails containing public meeting comments are part of the official record, note that personal contact information may be published if it is included with your e-mail.

4. TO WATCH OR LISTEN ONLY:
a. The public may view the meeting via one-way video feed by selecting the video option at the City Council Agendas’ link on the City webpage at www.brentwoodca.gov or via the City’s YouTube Channel: https://www.youtube.com/c/cityofbrentwoodca

CITY COUNCIL/SUCCESSOR AGENCY AGENDA
Zoom Webinar ID: 760 1397 0037

TELECONFERENCE LOCATION:

UCSC, Rachel Carson College
Building RCA2, Room 2103B
1156 High St, Santa Cruz, CA 95064

June 23, 2026, 7:00 p.m.

City Council Chambers
150 City Park Way
Brentwood, CA 94513
City Council Zoom Link
A. CALL TO ORDER & ROLL CALL
B. PLEDGE OF ALLEGIANCE
C. PUBLIC COMMENTS
Pursuant to Council/Administrative Policy, Meeting Rules and Procedures section 5.2 (Decorum Generally – Public), comments by members of the public are generally limited to five minutes, or less time if a large number of speakers is anticipated, or if approved by the Mayor. Speakers desiring answers to questions should direct them to the Council/Successor Agency and, if relevant, they may direct them to the appropriate staff member. Speakers can also follow up directly with staff during regular City business hours.

Please file a speaker’s card with the City Clerk on the form provided on the counter at the back of the Chambers.

During this portion of the meeting those present in the Council Chambers are permitted to speak on items that are listed under Presentations; Informational Reports; Consent Calendar; Requests for Future Agenda Items- New Items; or items not on the agenda during this portion of the meeting. Public comments for scheduled agenda items should wait until that time.

In order to ensure that all speakers feel welcome to share their views, members of the audience are kindly requested to refrain from applauding or speaking to the Council from the audience without being called upon first.

Zoom participation during this general public comment period will not be accepted.

D. PRESENTATIONS
D.1 Youth Commission Year in Review
D.2 City Facility Audiovisual System Upgrade CIP Completion E. INFORMATIONAL REPORTS FROM COUNCIL MEMBERS, COMMITTEES, LIAISONS, AND STAFF This portion of the agenda is to provide an opportunity for Council Members to report on attendance at events, subcommittee meetings, and entities on which the Council Member has been appointed as a liaison and for staff to provide brief updates and/or information to the City Council.

F. CONSENT CALENDAR
All matters listed on the consent calendar are considered routine in nature and will be enacted by one motion. If discussion is required, that particular item will be removed from the consent calendar and will be considered separately.

F.1 Meeting Minutes of the City Council
Special City Council Meeting Minutes of June 9, 2026
F.2 Proclamation Recognizing July 2026 as Parks and Recreation Month F.3 Proclamation Recognizing July 27, 2026 as National Korean War Veterans Armistice Day F.4 Consider appointment of new Commissioners to the City of Brentwood’s Youth Commission
Title/Recommendation
Adopt a resolution approving the Mayor’s appointments of [name of appointees] to the City of Brentwood Youth Commission.

F.5 Notice of Completion for the work performed by Mountain Cascade, Inc. for Municipal Services Center Pavement Rehabilitation Project
Title/Recommendation
Adopt a Resolution accepting the work performed by Mountain Cascade Inc. (“Contractor”) for the Municipal Services Center Pavement Rehabilitation (“Project”); and directing the City Clerk to file a Notice of Completion with the County Recorder.

G. PUBLIC HEARINGS
Persons addressing the City Council using Zoom are asked to raise their hands using the Zoom feature. Those attending in person and wishing to address the Council may do so from the podium. The Council may adopt reasonable regulations at the onset of the public hearing to facilitate public testimony. These regulations may include time limits. In the absence of such regulations, the public hearing shall follow the protocol for Public Comments.

G.1 Adopt the 2026/27 – 2027/28 Operating Budget; amend the 2025/26 Operating Budget; approve the 2026/27 Pay Schedule; and approve an agreement with Contra Costa County for Self-Service Sunday library hours
Title/Recommendation
Adopt two resolutions:

Adopt a City Council resolution (1) amending the Fiscal Year (FY) 2025/26 Operating Budget; (2) adopting the 2026/27 – 2027/28 Operating Budget; (3) approving the addition of seven (7.0) new full-time positions and one (1.0) new permanent part-time position to the City staff; (4) amending the 2025/26 Fund Balance Restrictions and Commitments in the General Fund; (5) approving the FY 2026/2027 Pay Schedule in accordance with the California Code of Regulations, Title 2, Section 570.5 and authorizing the City Manager or designee, in consultation with the City Attorney, to make ministerial revisions to it and (6) approving and authorizing the City Manager, or designee, to execute an agreement with Contra Costa County for Self-Service Sunday library hours.

1. Adopt a resolution of the Governing Board of the Successor Agency to the Redevelopment Agency of the City of Brentwood adopting the 2026/27 – 2027/28 Operating Budget for the former Brentwood Redevelopment Agency Funds.

2. G.2 Approve amendments to the Brentwood Municipal Code related to the adoption of Objective Design Standards for Residential and Mixed-Use Development needed to comply with State law as required by the City’s adopted Housing Element implementation policies Title/Recommendation
Introduce and waive first reading of an Ordinance approving text amendments (RZ 25- 001) to the Brentwood Municipal Code related to the adoption of Objective Design Standards for Residential and Mixed-Use Development including adding Chapter 17.825 - Objective Design Standards and Chapter 17.815 - By-Right Approval Process as well as

other updates throughout the Municipal Code needed to comply with State law as required by the City’s Housing Element.

The text amendments are exempt from the California Environmental Quality Act (CEQA), pursuant to Public Resources Code Section 21065, CEQA Guidelines Sections 15060(c)(2), 15378, and 15061(b)(3), as it can be seen with certainty that there is no possibility that they may have a significant effect on the environment.

G.3 Parks and Recreation Cost Allocation Plan and Schedule of City Fees Title/Recommendation
Adopt a Resolution amending the City of Brentwood Cost Allocation Plan and Schedule of City Fees related to the timing of Consumer Price Index adjustments and revisions to Parks and Recreation fees; and finding that the proposed amendments do not constitute a project for the purposes of the California Environmental Quality Act.

H. BUSINESS ITEMS
Persons addressing the City Council using Zoom are asked to raise their hands using the Zoom feature. Those attending in person and wishing to address the Council may do so from the podium. The Council may adopt reasonable regulations at the onset of each business item to facilitate public testimony. These regulations may include time limits. In the absence of such regulations, the item shall follow the protocol for Public Comments. Public comment on each of the following items is limited to what is described in the specific agenda item.

H.1 A Resolution Setting Temporary Compensation for Terrance Davis During His Service as Acting City Manager and Memorializing the City Council’s Prior Appointment.

Title/Recommendation
Adopt a Resolution Setting Temporary Compensation for Terrance Davis During His Service as Acting City Manager and Memorializing the City Council’s Prior Appointment.

H.2 Notice of Completion for the work performed by Yosso Group Inc., dba Specified Play Equipment Co. (SPEC) for Heron Park Playground Replacement, CIP Project No. 352- 52455
Title/Recommendation
Adopt a Resolution
Finding that the Project is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15302 of the CEQA Guidelines because the Project replaced an existing play structure at the same site with a new structure having substantially the same purpose and capacity; and

1. Accepting the work performed by Yosso Group Inc., dba Specified Play Equipment Co. (SPEC) for Heron Park Playground Replacement, CIP Project No. 352-52455, and directing the City Clerk to file a Notice of Completion with the County Recorder.

2. H.3 Authorize the City Manager to execute a Professional Services Agreement with WMB Architects for the Architectural Pre-design Services for the Vineyards at Marsh Creek Event Center/Amphitheater Project
Title/Recommendation
Adopt a Resolution approving a Professional Services Agreement with WMB Architects for the Architectural Pre-design Services in the amount of $258,775, plus a 10% contingency of $25,878, for a total funding authorization not-to-exceed amount of $284,653 for the Vineyards at Marsh Creek Event Center/Amphitheater Project, Capital Improvement Program (“CIP”) Project No. 337-37231 (“Project”) and authorizing the City Manager or designee to execute the Agreement in a form approved by the City Attorney.

H.4 Authorizing the Execution of Agreements and Necessary Documents for Ongoing and/or Recurring Purchases with Specified Vendors for Fiscal Year 2026/27 Title/Recommendation
Adopt a Resolution that: (1) authorizes the City Manager to execute certain agreements, amendments, purchase orders and/or change orders for ongoing and/or recurring

purchases that have anticipated spending over $50,000 for goods and/or services within the City Manager’s authority, after approval as to form by the City Attorney and subject to the not-to-exceed amounts detailed in Exhibit “A”; (2) authorizes the City Attorney to execute certain agreements, amendments, or purchase orders for legal services or personnel investigative services with specified vendors in amounts exceeding $75,000 for FY 2026/27, after approval as to form by the City Attorney and subject to the not-toexceed amounts detailed in Exhibit “A”; and (3) provides that the authorization does not amend the adopted budget and that expenditures may be made only to the extent funds are available in the adopted 2026/27 – 2030/31 Capital Improvement Program Budget or the 2026/27 – 2027/28 Operating Budget, as applicable.

H.5 Adoption of a Resolution Amending City Council Meeting Rules and Procedures to Implement Senate Bill 707 Requirements and Other Necessary Administrative Amendments
Title/Recommendation
Adopt a Resolution amending City Council Meeting Rules and Procedures, Policy No. 110- 1, to implement Senate Bill 707 requirements, establish procedures for responding to disruptions of telephonic or internet-based public access during City Council meetings, and incorporate other administrative amendments to reflect current practices and procedures.

H.6 Adopt City Council Administrative Policy for Meeting Changes and Emergency Communications
Title/Recommendation
Adopt a resolution approving Council Administrative Policy No. 00-12, Meetings Changes and Emergency Communications.

H.7 Overview of Engineering Standards Related to Street Design, Traffic Control Devices, and Traffic Calming
Title/Recommendation
Receive information regarding the City’s Engineering Standards governing street design, traffic control devices, and traffic calming, including applicable responsibilities under the Municipal Code and State law.

I. REQUEST FOR FUTURE AGENDA ITEMS - NEW REQUEST(S)
Council Members wishing to have an agenda item placed on a future agenda shall make a request under this section of the agenda. These items will be included on the agenda for the next Council meeting
J. REQUESTED FUTURE AGENDA ITEM(S)
J.1 Consider a Request from Council Member Oerlemans Regarding Potential Locations and Cost Estimates for Sharps and Battery Disposal Services Title/Recommendation
That the City Council consider and discuss Council Member Oerlemans' request regarding the feasibility of establishing community collection and disposal services for sharps and batteries, including potential locations, operational considerations, and associated costs.

K. ADJOURNMENT
Any disclosable public records related to an agenda item for the open session of this meeting distributed to all or a majority of the City Council less than 72 hours before this meeting is available for inspection at City Hall, located at 150 City Park Way, during normal business hours.

These writings will also be available for review at the City Council meeting in the public access binder in the entrance of the City Council Chambers.

Public comments received after 3:00 p.m. of the meeting date, but prior to the start of the meeting, will be emailed to the City Council, posted online at www.brentwoodca.gov/councilmeetingonline within one day following the meeting, and will be summarized in the meeting minutes.

The Closed Captioning provided via Zoom is auto generated. It is not the official record and is provided as a convenience.

If you challenge the any of the matters listed under 'Public Hearings' in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Brentwood City Council at, or prior to, the public hearing
NOTICE
In compliance with the Americans with Disabilities Act, the meeting room is wheelchair accessible and disabled parking is available at the City Hall parking lot. If you are a person with a disability and you need disability-related modifications or accommodations to participate in this meeting, please contact the City Clerk's Office at (925) 516-5440 or fax (925) 516-5441. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. {28 CFR 35.102-35, 104 ADA Title II}

POSTING STATEMENT
On June 18, 2026, a true and correct copy of this agenda was posted on the City Hall Bulletin Board, outside City Hall, 150 City Park Way, Brentwood, CA 94513 and at our website www.brentwoodca.gov
A complete packet of information is available for public review at City Hall or on our website at www.brentwoodca.gov

1 SPECIAL CITY COUNCIL MINUTES
June 9, 2026, 5:15 p.m.

A. CALL TO ORDER & ROLL CALL
Mayor Meyer called the meeting to order at 5:15 p.m.

Roll Call found the following members present: Maloney, Pierson, Mendoza, Oerlemans and Mayor Meyer.

B. PLEDGE OF ALLEGIANCE
Mayor Meyer led the Pledge of Allegiance.

C. PUBLIC COMMENTS
Mayor Meyer opened public comments.

Danny Dohrmann provided comments regarding use of City time.

Melissa van Ruiten provided comments regarding harassment and discrimination in the workplace.

There being no additional speakers, Mayor Meyer closed public comments.

D. RECESS TO CLOSED SESSION
Moved by: Pa'tanisha Pierson, Vice Mayor
Seconded by: Jovita Mendoza, Council Member
The Council, by motion, moved to recess at 5:23 p.m.

Ayes (5): Jovita Mendoza, Council Member, Susannah Meyer, Mayor, Pa'tanisha Pierson, Vice Mayor, Tony Oerlemans, Council Member, and Faye Maloney, Council Member
Motion Approved (5 to 0)
E. BUSINESS ITEMS
E.1 PUBLIC EMPLOYEE PERFORMANCE EVALUATION
The Council reconvened into Open Session at 7:43 p.m.

Mayor Meyer reported that the Council took the following action on this item during the Closed Session:

Moved by: Faye Maloney, Council Member
Seconded by: Tony Oerlemans, Council Member

2 The Council, by motion, moved to place City Manager, G. Harold Duffey on paid administrative leave effective immediately.

Ayes (4): Jovita Mendoza, Council Member, Susannah Meyer, Mayor, Tony Oerlemans, Council Member, and Faye Maloney, Council Member Abstained (1): Pa'tanisha Pierson, Vice Mayor
Motion Approved (4 to 0)
E.2 CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Mayor Meyer stated there was no reportable action from Closed Session for this item.

F. ADJOURNMENT
Moved by: Jovita Mendoza, Council Member
Seconded by: Faye Maloney, Council Member
The Council, by motion, adjourned the meeting at 7:45 p.m.

Ayes (5): Jovita Mendoza, Council Member, Susannah Meyer, Mayor, Pa'tanisha Pierson, Vice Mayor, Tony Oerlemans, Council Member, and Faye Maloney, Council Member
Motion Approved (5 to 0)

PROCLAMATION
WHEREAS, parks, trails, open spaces, and recreation programs enhance the quality of life in Brentwood by providing opportunities for healthy living, outdoor enjoyment, learning, and community connection; and WHEREAS, Brentwood’s parks and recreational amenities offer welcoming places where residents of all ages can gather, stay active, build friendships, and create lasting memories; and
WHEREAS, access to quality parks and recreation opportunities contributes to the physical, mental, and social well-being of individuals and helps foster a vibrant and resilient community; and
WHEREAS, parks and open spaces help preserve natural resources, beautify neighborhoods, and promote environmental stewardship for the benefit of current and future generations; and
WHEREAS, the dedicated efforts of parks and recreation professionals, volunteers, and community partners help ensure that Brentwood’s parks remain safe, accessible, and enjoyable for current and future generations.

NOW, THEREFORE, BE IT PROCLAIMED that the City Council
of the City of Brentwood does hereby recognize July 2026 as

PARKS AND RECREATION MONTH
and encourages all residents to celebrate by exploring local parks, participating in recreation programs, enjoying the outdoors, and recognizing the important role parks and recreation play in strengthening our community.

Dated this 23rd day of June, 2026
Susannah Meyer, Mayor

PROCLAMATION
WHEREAS, National Korean War Veterans Armistice Day
commemorates the signing of the Armistice Agreement on July 27, 1953, marking the cessation of hostilities in the Korean War and honoring the courage, sacrifice, and service of those who answered the call to defend freedom; and
WHEREAS, nearly two million Americans served during the Korean War, and their dedication helped preserve liberty, strengthen democratic ideals, and forge a lasting alliance between the United States and the Republic of Korea that continues to promote peace and prosperity today; and WHEREAS, this day provides an opportunity for communities to remember the valor of Korean War veterans, including those who never returned home, while ensuring that the legacy of the often-called “Forgotten War” remains an enduring part of our nation’s story; and WHEREAS, the City of Brentwood proudly joins communities across the nation in recognizing Korean War veterans and embracing the spirit of remembrance, gratitude, friendship, and hope for a more peaceful future for generations to come.

NOW, THEREFORE, BE IT PROCLAIMED that the City Council
of the City of Brentwood does hereby recognize the 27th day of July 2026 as

NATIONAL KOREAN WAR VETERANS ARMISTICE DAY
and encourages all residents to honor the service and sacrifice of Korean War veterans through reflection, appreciation, education, and community recognition.

Dated this 23rd day of June, 2026
Susannah Meyer, Mayor

CITY COUNCIL AGENDA ITEM NO. F.4
06/23/2026
SUBJECT: Consider appointment of new Commissioners to the City of Brentwood’s Youth Commission
DEPARTMENT: Parks and Recreation
STAFF: E. Harith Aleem, Director of Parks and Recreation Thien Nguyen, Recreation Manager
Stacey Dempsey, Recreation Supervisor

TITLE/RECOMMENDATION
Adopt a resolution approving the Mayor’s appointments of [name of appointees] to the City of Brentwood Youth Commission.

FISCAL IMPACT
There is no fiscal impact associated with this action.

BACKGROUND
The Brentwood Youth Commission consists of ten (10) members. The Commission’s purpose is to “to provide a voice for youth in the community; actively empower youth by supporting and providing programs, activities and initiatives; and create a positive and motivating environment for youth to prosper in the community.” (Brentwood Municipal Code § 2.50.070(A).) To qualify to serve as a Commissioner, an individual must, at the time of the appointment, be between eleven and eighteen years of age and a city resident. (Brentwood Municipal Code § 2.50.020(A).) Vacancies were advertised on the City website and at the local middle and high schools. Twenty-one applicants for the Youth Commission were interviewed on May 28 and May 29, 2026. The interviews were conducted by an interview panel consisting of a Park and Recreation Commissioner, the Youth Commission Staff Liaison and one Youth Commissioner, as stated in the Youth Commission Bylaws. Five terms will begin July 1, 2026 and end June 30, 2028 and one term will begin on July 1, 2026 and end on June 30, 2027
On June 3, 2026, the Youth Commission, by motion, is recommending to the City Council the following applicants to fill the six vacant Commissioner positions:

CITY COUNCIL AGENDA ITEM NO. F.4
06/23/2026
Caren Helvey 1-year term (returning member)
Lauren Dodson 2-year term (new member)
Vishvak Gurram 2-year term (new member)
Christopher Huang 2-year term (new member)
Vanya Marwaha 2-year term (new member)
Jaydon Spears 2-year term (new member)

CITY COUNCIL STRATEGIC INITIATIVE
Not Applicable.

PREVIOUS ACTION
Previous Action by the City Council is included on Attachment 1.

DATE OF NOTICE
Not Applicable.

ENVIRONMENTAL DETERMINATION
Not Applicable.

ALTERNATIVE OPTION(S)
Council may request additional information to return to a future City Council meeting, however, new Commissioners should be approved before current terms expire on June 30, 2026.

ATTACHMENT(S)

1. Previous Action

2. Resolution

PREVIOUS ACTION
Previous actions related to this agenda item that were taken by the Council are listed below. To view prior actions and materials, and Brentwood Municipal Code references in the staff report, as applicable:
 Visit www.brentwoodca.gov/meetings, and select the meeting date(s) desired to see the reference materials and videos.
 Visit www.brentwoodca.gov/municipalcode to research references to the Brentwood Municipal Code and search by the code section(s) cited.

On June 11, 2024, the City Council appointed the following Youth Commissioners to two-year terms beginning July 1, 2024: Megan Dowdy, Rojan Habon, Carena Helvey, Rachel Lei, and Alana Osivwemu; and the following Youth Commissioner to a oneyear term beginning July 1, 2024: Valentina Barros.

On June 10, 2025, the City Council appointed the following Youth Commissioners to two-year terms beginning July 1, 2025: Owen Spishock, Aaroah Ranjan, Amara Espinosa, Sahil Narula, and Manya Mohan.

RESOLUTION NO. 2026-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BRENTWOOD APPROVING THE MAYOR’S APPOINTMENTS OF
[INSERT NAME OF APPOINTTEES AFTER APPOINTMENT] TO

THE CITY OF BRENTWOOD YOUTH COMMISSION
WHEREAS, Government Code section 40605 provides that, in a general law city with an elected mayor, the mayor, with the approval of the city council, shall make all appointments to boards, commissions, and committees unless otherwise specifically provided by statute; and
WHEREAS, Brentwood Municipal Code 2.50.020 states that the Mayor is to appoint the members of the Youth Commission, based on the recommendations of the Youth Commission and with the approval of the City Council; and WHEREAS, six positions on the City of Brentwood Youth Commission will be vacant or available for appointment effective July 1, 2026; and WHEREAS, vacancies were advertised on the City website and at the local middle and high schools; and
WHEREAS, twenty-one (21) applications were received and applicants were interviewed on May 28 and May 29, 2026; and
WHEREAS, interviews were conducted by a panel consisting of a Park and Recreation Commissioner, the Youth Commission Staff Liaison, and one Youth Commissioner; and
WHEREAS, on June 3, 2026 the Youth Commission accepted the report from the interview panel and recommended that the City Council approve new commissioner appointments; and
WHEREAS, each appointee must satisfy the eligibility requirements of Brentwood Municipal Code section 2.50.020 at the time of appointment.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Brentwood hereby approves the Mayor’s appointments of the following individuals to serve on the Youth Commission for the terms stated below:
:
[insert name of appointees after appointment]
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on June 23, 2026, by the following vote:

CITY COUNCIL AGENDA ITEM NO. F.5
06/23/2026
SUBJECT: Notice of Completion for the work performed by Mountain Cascade, Inc. for Municipal Services Center Pavement
Rehabilitation Project
DEPARTMENT: Engineering
STAFF: Allen Baquilar, Director of Engineering/City Engineer Anju Pillai, Engineering Manager
Angel Abarca, Senior Engineer

TITLE/RECOMMENDATION
Adopt a Resolution accepting the work performed by Mountain Cascade Inc. (“Contractor”) for the Municipal Services Center Pavement Rehabilitation (“Project”); and directing the City Clerk to file a Notice of Completion with the County Recorder.

FISCAL IMPACT
The total contract amount for the work performed by the Contractor is as follows:

Contractor Final Contract Amount Council Approved Amount (Including Contingency)
Mountain
Cascade, Inc. $380,057.00 $393,139.00
The final cost is approximately 3.3% below the City Council approved amount for this contract. This Project is funded by the 2025/26 Solid Waste Enterprise Operating Budget.

BACKGROUND
Due to the extensive use of heavy vehicles within the City’s Municipal Services Center (“MSC”), the pavement and parking areas around the Solid Waste Transfer Station had deteriorated. The Project was created to repair these areas, which exhibited severe cracking, surface deterioration and structural weakening of the pavement.

Construction of the Project consisted of rehabilitating the existing pavement around the Solid Waste Transfer Station and paving a gravel area to increase onsite parking.

The work included the following improvements:

CITY COUNCIL AGENDA ITEM NO. F.5
06/23/2026
 2” grind and overlay
 4” dig out repairs
 Adjusting existing utilities to finished grade
 Replacing traffic striping, legends, and markers
Construction commenced on March 23, 2026, and was completed on April 10, 2026, in accordance with the contract documents. Staff recommends that the City Council accept the work performed by the Contractor, and direct the City Clerk file the Notice of Completion with the County Recorder.

CITY COUNCIL STRATEGIC INITIATIVE
Not Applicable.

PREVIOUS ACTION
Previous Action by the City Council is included as Attachment 1.

DATE OF NOTICE
Not Applicable.

ENVIRONMENTAL DETERMINATION
This Project was determined to be categorically exempt under the California Environmental Quality Act (CEQA) pursuant to Section 15302 (Replacement or Reconstruction), as it involved the replacement of existing public infrastructure with no expansion of capacity. A Notice of Exemption was filed with the County Recorder on January 15, 2026, per 14 CCR § 15062.

ALTERNATIVE OPTION(S)

1. Do not approve staff’s recommendation.

2. Continue the item with direction for staff to return with additional information.

ATTACHMENT(S)

1. Previous Action

2. Photographs

3. Resolution

4. Notice of Completion

PREVIOUS ACTION
Previous actions related to this agenda item that were taken by the Council are listed below. To view prior actions and materials, and Brentwood Municipal Code references in the staff report, as applicable:
 Visit www.brentwoodca.gov/meetings, and select the meeting date(s) desired to see the reference materials and videos.
 Visit www.brentwoodca.gov/municipalcode to research references to the Brentwood Municipal Code and search by the code section(s) cited.

On June 25, 2024, by Resolution No. 2024-73, the City Council adopted the 2024/25 – 2025/26 Operating Budget, which included the Municipal Services Center Pavement Rehabilitation Project.

On February 10, 2026, by Resolution No. 2026-08, the City Council approved the contract documents, awarded the bid and authorized the City Manager or designee to execute a construction contract and necessary documents for the Municipal Services Center Pavement Rehabilitation Project with Mountain Cascade Inc., as the lowest responsible and responsive bidder, in the amount of $341,860, plus funding authorization for a 15% contingency of $51,279, for a total funding authorization notto-exceed amount of $393,139.

Acceptance of the Municipal Services Center
Pavement Rehab Project

RESOLUTION NO. 2026-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

BRENTWOOD ACCEPTING THE WORK PERFORMED BY
MOUNTAIN CASCADE, INC. FOR THE MUNICIPAL SERVICES
CENTER PAVEMENT REHABILITATION PROJECT; AND

DIRECTING THE CITY CLERK TO FILE A NOTICE OF COMPLETION

WITH THE COUNTY RECORDER
WHEREAS, on June 25, 2024, by Resolution No. 2024-73, the City Council adopted the 2024/25 – 2025/26 Operating Budget, which included the Municipal Services Center Pavement Rehabilitation Project (“Project”); and WHEREAS, on February 10, 2026, by Resolution No. 2026-08, the City Council approved the contract documents, awarded the bid and authorized the City Manager or designee to execute a construction contract and necessary documents for the Municipal Services Center Pavement Rehabilitation Project with Mountain Cascade Inc. as the lowest responsible and responsive bidder, in the amount of $341,860, plus funding authorization for a 15% contingency of $51,279, for a total funding authorization not-to-exceed amount of $393,139; and
WHEREAS, due to the extensive use of heavy vehicles within the Municipal Services Center, the pavement and parking areas around the Solid Waste Transfer Station had deteriorated; and
WHEREAS, the Project was created to repair these areas which exhibited severe cracking, surface deterioration and structural weakening of the pavement; and
WHEREAS, construction of the Project consisted of rehabilitating the existing pavement around the Solid Waste Transfer Station and paving a gravel area to increase onsite parking; and
WHEREAS, the Contractor completed all improvements on April 10, 2026, in substantial conformance with the approved plans and specifications; and WHEREAS, the City Engineer has determined that the work has been satisfactorily completed and recommends acceptance of the improvements; and WHEREAS, staff is recommending that the work performed by Mountain Cascade, Inc. be accepted and the Notice of Completion be filed with the County Recorder.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Brentwood does hereby accept the work performed by Mountain Cascade, Inc. for the Municipal Services Center Pavement Rehabilitation Project and directs the City Clerk to file a Notice of Completion with the County Recorder.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 23rd day of June 2026 by the following vote:

Municipal Services Center Pavement Rehabilitation Project NOTICE OF COMPLETION CA 09-15-21 Page 1
Recording Requested By:

City of Brentwood
When Recorded Mail To:

City Clerk
City of Brentwood
150 City Park Way
Brentwood, CA 94513

EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§ 6103, 27383
SPACE ABOVE THIS LINE IS FOR RECORDER’S USE

NOTICE OF COMPLETION
Civil Code §§ 8182, 8184, 9204, and 9208
NOTICE IS HEREBY GIVEN THAT:

1. The undersigned is the agent of the owner of the Project described below.

2. Owner’s full name is City of Brentwood (“City”).

3. City’s address is 150 City Park Way, Brentwood, CA 94513.

4. The nature of City’s interest in the Project is:

X Fee Ownership __ Lessee __ Other:__________________

5. Construction work on the Project performed on City’s behalf is generally described as follows: Municipal Services Center Pavement Rehabilitation Project.

6. The name of the original Contractor for the Project is: Mountain Cascade, Inc.

7. The Project was accepted as complete on: June 23, 2026.

8. The Project is located in Brentwood, CA 94513 as follows: 2” grind and overlay, 4” dig out repairs, lower and adjust existing utilities to finish grade, and replace traffic striping, legends, and markers at the City’s Municipal Services Center, including the pavement and parking areas around the Solid Waste Transfer Station.

Verification: In signing this document, I, the undersigned, declare under penalty of perjury under the laws of the State of California that I have read this notice, I know and understand the contents of this notice, and that the facts stated in this notice are true and correct. __________________________ ________________________________ Date Amanda McVey, City Clerk
City of Brentwood, California

EXEMPT FROM NOTARY ACKNOWLEDGMENT REQUIREMENTS PER
GOVERNMENT CODE § 27287 AND CIVIL CODE § 9208

CITY COUNCIL AGENDA ITEM NO. G.1
06/23/2026
SUBJECT: Adopt the 2026/27 – 2027/28 Operating Budget; amend the 2025/26 Operating Budget; approve the 2026/27 Pay Schedule; and approve an agreement with Contra Costa County for SelfService Sunday library hours DEPARTMENT: Finance and Information Systems
STAFF: Kerry Breen, Director of Finance and Information Systems Christine Andrews, Assistant Director of Finance and Information Systems
Sonia Agostini, Accounting Manager

TITLE/RECOMMENDATION
Adopt two resolutions:

1. Adopt a City Council resolution (1) amending the Fiscal Year (FY) 2025/26 Operating Budget; (2) adopting the 2026/27 – 2027/28 Operating Budget; (3) approving the addition of seven (7.0) new full-time positions and one (1.0) new permanent part-time position to the City staff; (4) amending the 2025/26 Fund Balance Restrictions and Commitments in the General Fund; (5) approving the FY 2026/2027 Pay Schedule in accordance with the California Code of Regulations, Title 2, Section 570.5 and authorizing the City Manager or designee, in consultation with the City Attorney, to make ministerial revisions to it and (6) approving and authorizing the City Manager, or designee, to execute an agreement with Contra Costa County for Self-Service Sunday library hours.

2. Adopt a resolution of the Governing Board of the Successor Agency to the Redevelopment Agency of the City of Brentwood adopting the 2026/27 – 2027/28 Operating Budget for the former Brentwood Redevelopment Agency Funds.

Council/Administrative Policy No. 10-5, Budget and Fiscal Policies, (“Policy”) requires the City Council adopt a two-year operating budget for the ensuing two fiscal years no later than June 30th.

This draft 2026/27 – 2027/28 Operating Budget (“Budget”) meets the criteria defined in the Policy requiring the City to maintain a balanced General Fund budget over the two-year operating budget period and to maintain a 30% General Fund Unassigned

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Fund Balance (“30% Reserve”). Adoption of this draft Budget will ensure the City Council meets the budget adoption timeline defined in the Policy.

FISCAL IMPACT
The City Council has provided strong guidance for the preparation of this Budget by adopting sound fiscal policies and providing clear direction. Ensuring the availability and stability of the ongoing financial resources necessary to continue to provide high quality services to the citizens remains a top priority.

Staff will continuously monitor the financial condition of the City and report to the City Council any significant differences between the assumptions used in this Budget and actual results, if they occur. Staff will provide a Mid-Year update to the Budget in January 2027 and every six months thereafter during the two-year Budget period.

Should economic conditions warrant, more frequent financial updates will be provided.

The proposed two-year Operating Budget supports ongoing operational service levels for residents, provides resources for the majority of the City Manager’s Top 100 Priority Projects and funding to complete carryover Strategic Plan projects and initiatives. Additionally, the Operating Budget continues the City’s strategy of prefunding unfunded obligations, maintains a 30% General Fund Reserve, and provides for the necessary capital funding for infrastructure projects to meet the needs of the community and for upgrades and/or replacement of existing infrastructure.

The two-year General Fund budget projection, after factoring in conservative savings assumptions, shows that revenues are about break-even with expenditures. This break-even result includes maintaining the required 30% reserve requirement that increases every year as expenditures increase.

A draft of the ten-year General Fund Fiscal Model (“Fiscal Model”) was reviewed by the City Council at the Budget workshop in May. The Fiscal Model projects that the Budget Stabilization Fund balance will be fully utilized by the ninth year of the forecast period. This highlights the City’s limited capacity for ongoing service expansion without identifying additional revenues or reducing expenditures in other service areas.

The 2026/27 – 2027/28 Operating Budget for the former Brentwood Redevelopment Agency funds now operated by the City as Successor Agency (SA) will allow the SA

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to meet the debt obligations of the former Brentwood Redevelopment Agency and continue with the task of winding down the former agency.

If approved, the agreement with the Contra Costa County Library for the provision of Self-Service Sunday library hours would be at no cost to the City.

BACKGROUND
The Finance and Information Systems Department is responsible for the preparation of the City’s 2026/27 – 2027/28 Operating Budget (“Budget”). The final Budget brought for City Council consideration tonight reflects the collaborative efforts of all City departments and incorporates the policy direction and guidance received from the City Council. Additionally, the Budget includes resources for the majority of the Department Top 100 Priority Projects included in the Budget Appendix and funding for certain carryover FY 2022/23 – FY 2023/24 Strategic Plan (“Strategic Plan”) initiatives and projects. Due to the change in the timing of the strategic plan cycle, a new strategic plan and accompanying initiative and project costs have not yet been fully considered for this Budget.

The Budget process began in late 2025, with every City department participating in creating the Budget draft. Another critical step in the process was staff’s development of the 2026/27 – 2030/31 Capital Improvement Program (CIP). Concurrent with the development of the CIP, each City department reviewed their individual operational and funding needs and submitted proposed budgets to the Finance Department and City Manager. The departmental budget requests necessary to maintain established service levels were incorporated into the draft Budget, while requests for additional staff and funding were highlighted for further review.

The Budget and Debt Management Committee (“Committee”) held meetings with Finance Department staff to review both the draft CIP and draft Budget, including all requests for additional staff and funding, prior to their presentation to the full City Council.

A CIP workshop was held on April 14, 2026, where the City Council reviewed the draft CIP and provided direction on the capital project plan. The CIP was adopted by the City Council on May 26, 2026, including changes made by the City Council at the workshop. The capital project expenditures and funding from the 2026/27 – 2030/31 CIP for the two-year budget period have been incorporated into this draft Budget.

On May 26, 2026, the draft Budget was presented for City Council consideration and discussion at an Operating Budget workshop. At that workshop, the City Council reviewed the draft Budget and provided direction incorporated into the final Budget being considered for adoption tonight.

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1. 2026/27 – 2027/28 Operating Budget Overview
The Budget presented tonight includes resources for the majority of the Department Top 100 Priority Projects included in the Budget Appendix, and funding for certain carryover Strategic Plan initiatives and projects in addition to the ongoing costs of City operations. These projects will maintain and enhance the high standards of living for all residents and include:
 Sand Creek Sports Complex – operational costs of the Sand Creek Sports Complex Phase I, which will include three multi-use sports fields, parking lot, restrooms and other amenities. The complex is expected to be operational in the latter half of FY 2026/27 and, aside from replacement set-asides to begin in the 2027/28 – 2028/29 Operating Budget, limited-service personnel and operational costs are expected to be covered by field rental and other revenue.  Innovation Center @ Brentwood Infrastructure – Efforts to advance the infrastructure improvements at the Brentwood Innovation Center remain a key component of the City’s long-term economic development strategy. The project is intended to expand local employment opportunities, support workforce development, and reduce long commute patterns for Brentwood residents by attracting high-quality jobs to the community. Federal funding is being actively pursued to support infrastructure development at the site.  Vineyards at Marsh Creek – Theater/Event Center/Amphitheater Phase I – phased construction of an open-air stage and event space, with future phasing of an amphitheater and a future event center at the Vineyards at Marsh Creek development.
 Staff incorporated the City Council’s direction from the budget workshop into the draft Budget to set aside $0.5 million of the $1.3 million reserve for future capital projects for a Heron Park restroom project.

In addition to the four (4.0) positions approved after the Budget Workshop as part of the Solid Waste expansion of services (discussed later in this report), the Budget includes the following three (3.0) new Enterprise Fund positions. These proposed positions were added to the Budget in response to increases in the fleet, expansion of wastewater treatment facilities and additional state regulatory requirements for water and organics disposal. The positions and budgeted costs are as follows:

Enterprise Position FTE Annual Cost
Fleet Maintenance Services
(Funded by Solid Waste)
Senior Mechanic 1.0 $168,000
Wastewater Enterprise Utilities Maintenance Mechanic 1.0 178,000 Water/Solid Waste Enterprise Management Analyst I/II 1.0 201,000 Total Estimated Annual Cost (FY 2026/27) $547,000

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In the General Fund, conversion of one limited-service Administrative Assistant I/II position in the Human Resources department to a permanent part-time position is included in the Budget. The position conversion will increase costs only by the associated part-time benefit expenditure.

2. 2025/26 General Fund Projected Results
After factoring in conservative budget savings assumptions, the current conservative estimate is for a FY 2025/26 General Fund surplus of approximately $0.3 million. As has been the case in prior years, the City’s General Fund remains essentially balanced. In accordance with City Council policy, half of any actual surplus realized at the end of the year will be used to pay down unfunded pension obligations and half will be transferred to the City’s Budget Stabilization Fund.

3. 2026/27 – 2027/28 General Fund Overview
After expected budget savings, a FY 2025/26 General Fund surplus of $300,000 is projected. The two-year Budget surplus is projected to be $35,000 after expected savings, which is an operational break-even result over the two upcoming fiscal years. This slight surplus is the same amount presented at the Operating Budget workshop after changes detailed in section 4. below were incorporated, including the additional costs offset by the positive impact of cost reallocations and other expense reductions. This surplus is also after setting aside funds for the 30% reserve of an average of about $750,000 each Budget year as expenditures increase.

The ten-year General Fund Fiscal Model (“Fiscal Model”) projects that the Budget Stabilization Fund (BSF) would be depleted in nine years. This illustrates that while the City is well positioned, it is still facing fiscal challenges and does not have capacity to expand beyond its current service levels. The BSF is comprised of prior fiscal years’ budget savings and was established to offset rising pension and retiree medical costs over the next decade. This fund provides flexibility for any unfavorable economic conditions and uncertainty that may occur in the coming fiscal years.

In the longer term (15 years), it is expected that significant General Fund savings from the completion of the retiree medical prefunding strategy along with the ending of existing debt service obligations will ultimately remove any need for BSF support.

A strategy to smooth the higher expense needs for the next 5-12 years against the City’s reduced long-term expenditure forecast is included as one of the Finance Department’s Top Ten Projects.

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4. Updates Incorporated Following the Workshop
Due to timing issues, there were items that were not included in the budget workshop version of the Budget that are incorporated into the version of the budget for consideration of adoption on tonight’s agenda. Items not included in the workshop version of the draft budget due to action and direction received from the City Council occurred too late to include them in the workshop draft are as follows:
 Implementation of Enhanced Solid Waste Organics Collection Services Personnel positions and costs:

Enterprise Position FTE Annual Cost
Solid Waste Equipment Operator I/II 3.0 $453,630
Fleet Maintenance
Services
(Funded by Solid Waste)
Mechanic I/II 1.0 163,910
Total Estimated Annual Cost (FY 2026/27) $617,540
Expenditures in the final version of the Budget in the Solid Waste Enterprise Fund will increase by approximately $1.1 million for annual on-going supplies and services costs. In FY 2026/27, one-time costs of approximately $4.5 million will be budgeted to purchase five new single-body garbage trucks (funded by existing excess cash reserves).
 City Attorney Contract
The draft General Fund Budget includes vacancy placeholder costs for the City Attorney position. On April 14, 2026, the City Council approved a contract for the City Attorney position. The cost of the position will be updated in the final Budget to reflect the salary and benefit costs in the approved contract.  2nd Street Parking Lot Agreement
On April 28th, the City Council approved an agreement for the lease of the 2nd Street parking lot. This lease agreement included costs to the General Fund of $24,000 in FY 2026/27 and $30,000 in FY 2027/28 that will be incorporated into the final Budget.

5. Other Budget Updates
Since the workshop, staff has included and recommends the following revisions to the draft Budget for updated financial information and estimates:

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 Updates to the allocation of pension and retiree medical annual required payments as a result of the new positions for the enhancement of the Solid Waste Enterprise services.
 Updates to the administrative reimbursements to the General Fund from other funds due to the new Solid Waste positions and additional costs for the City Attorneys contract.
 Updates to the Water Enterprise Fund for the most recently updated Brentwood Water Treatment Plant and Randall-Bold Water Treatment Plant operational budgets received from Contra Costa Water District.  Update to the Agriculture Land Fund to add the annual cost of trail maps for reimbursement to Harvest Time in Brentwood.
 Adjustment of the budget for additional library hours to match the cost amount received from the Contra Costa County Library.
 Increase the General Fund budget by $10,000 per fiscal year for the contribution to Meals on Wheels for staffing services in support of the Senior Nutrition Program at the Brentwood Senior Activity Center, with CalAIM support anticipated for the first year.

6. Budget Watch
Economic Outlook
While the economy has remained resilient, there are signs that economic growth may moderate. Higher borrowing costs have impacted consumer spending and slowed development activity. Property tax revenue growth has slowed in recent years, and other major revenues including sales taxes and transient occupancy taxes are projected to show only modest gains. In addition, the recent period of elevated inflation has increased the cost of providing services and delivering capital projects.

With limitations on revenue generation, the City’s revenue growth may not keep pace with these elevated costs if inflationary pressures persist.

Labor Contracts
The City’s contracts with its labor bargaining units expire on June 30, 2027. The Budget for FY 2027/28 includes a placeholder cost-of-living increase for personnel salaries of 3% per year, along with projected costs for health care and other negotiated benefits. In the General Fund, salary and benefit costs make up approximately 67% of expenditures. If labor negotiations result in cost-of-living increases above the placeholder amounts, expenditure budgets would need to increase and General Fund projected results in the two-year Budget and Fiscal Model would be impacted.

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CalPERS Investment Returns
The City’s future pension and retiree medical costs are heavily dependent upon the investment returns earned by CalPERS. As of mid-June, staff estimates that CalPERS investment returns are tracking above the target rate of 6.8%. However, current economic conditions and global uncertainty may have an impact on the final return.

Annual investment returns in past years have missed the investment return target and CalPERS has had to increase the City’s contributions to make up for investment shortfalls. The variability of rates of return is another factor that adds to City’s overall economic uncertainty.

California Assembly Bill (AB) 1383: Public Employees’ Retirement Benefits:

Safety Members
In 2025, AB 1383 was introduced, aiming to enhance retirement benefits for public safety employees by relaxing PEPRA restrictions, allowing for increased pension formulas (up to 3% at age 55) and bargaining over contribution sharing. The bill would be effective for employees first hired on or after January 1, 2027, or, for current PEPRA members, for service performed on or after that date. As of May 2026, AB 1383 passed the Assembly and is currently in the Senate. If the bill passes, the City could experience a significant increase in future pension liabilities and annual pension costs.

7. General Fund Restrictions and Commitments
Recommended fund balance restrictions and commitments in the General Fund on June 30, 2026, are summarized in Attachment 4 - Exhibit A.  The Police Department 5th Beat commitment of $2.4 million reflects funds that have been set aside for one-time and the first two years of ongoing costs of the 5th Beat.
 Commitment for the full cost of the Comprehensive General Plan Update CIP Project to commence in FY 2026/27 of $1,350,000
 As directed by the City Council at the Budget workshop, establishment of a commitment of $500,000 for a future project to add a restroom to Heron Park  A commitment of $800,000 for future capital projects
 The Future Strategic Initiatives commitment reflects the costs to complete certain 2022/23 – 2023/24 Strategic Plan Initiatives funded by the General Fund
 City Council Redistricting balance is for funds set aside for the cost of future redistricting activities that will be required after the 2030 U.S. Census

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8. Operating Budget Policies and Guidelines
The City Council has adopted several financial policies that serve as a guide in the development, administration and management of the Budget. These include the Budget and Fiscal Policies (Council/Administrative Policy 10-5), the Capital Financing and Debt Management Policy (Council/Administrative Policy 10-23) and the Investment Policy (Council/Administrative Policy 10-4). They can be found on the City website at Council / Administrative Policies (Finance) | Brentwood, CA (brentwoodca.gov)
This Budget was also prepared in accordance with the following City Council direction and key budgetary principles:
 Includes funding and appropriations from the CIP adopted on May 26, 2026, and City Council direction received at the May 26, 2026, Budget Workshop  Maintains a General Fund 30% reserve
 Appropriates resources for the majority of the Department Top 100 Priority Projects included in the Budget Appendix and funding to complete carryover 2022/23 – 2023/24 Strategic Plan initiatives
 Continuing the plan to fund its retiree medical benefit obligation at 85% of the annual actuarial required contribution, proactively addressing the unfunded liability for these benefits
 Budgets for the Internal Service Replacement Funds at appropriate levels to ensure operational stability and that adequate replacement funds are available when necessary
 Impacts of the proposed Budget and CIP on the Fiscal Model were analyzed by staff and presented to the City Council at the budget workshop A copy of the Budget is included as Attachment 5 - Exhibit B to this staff report and available for public review on the City’s website using the following link:

Operating Budgets | Brentwood, CA (brentwoodca.gov)
For a hard copy of the Operating Budget, please contact the Finance and Information Systems Department via email at [email protected] or by calling 925-516- 5460.

9. FY 2025/26 Operating Budget Amendments
A budget adjustment of $330,000 is proposed in both the General Fund (transfer out budget) and Special Revenue Roadway Development Impact Fee Fund (transfer in budget) to account for the repayment of an interfund loan.

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A budget adjustment of $75,000 is proposed to increase expenditure budget in the Special Revenue First-Time Homebuyer Fund to account for increased volume of loan activity.

A contractual services budget adjustment of $6,000 is proposed in the Special Revenue City Low Income Housing Fund to account for surveying costs higher than anticipated in the original budget.

A budget adjustment totaling $7,284 is being proposed to increase the expenditure budget in three Special Revenue Landscape and Lighting Assessment District Funds to account for utilities and other maintenance costs that are higher than anticipated in the original budget.

10. 2026/27– 2027/28 - Successor Agency Operating Budget The City of Brentwood elected to serve as the Successor Agency to the Brentwood Redevelopment Agency (SA). As part of its duties, a successor agency must perform the administrative functions necessary to facilitate the orderly wind down of the former redevelopment agency.

The SA budget is comprised of two funds: Fund 303 – Successor Agency Administration and Debt Service and Fund 304 – Successor Agency RDA Obligation Retirement.

The SA Administration and Debt Services Fund is under the control of the SA, with any actions taken regarding these funds being subject to approval by the Oversight Board and by the State of California. The legislation governing the dissolution of redevelopment also required successor agencies to establish a fund to account for all future tax increment allocations made by the County Auditor-Controller’s Office from their County Redevelopment Property Tax Trust Fund (“RPTTF”). The City of Brentwood, as SA, established Fund 304, the SA RDA Obligation Retirement Fund, for this purpose.

Staff is requesting approval of the 2026/27 – 2027/28 SA Operating Budget which allows for payment of the items listed on the approved Recognized Obligation Payment Schedule (“ROPS”) for the period of July 2026 – June 2027. It should be noted that regardless of the approved operating budget, no funds can be expended by the SA without first securing approval of the ROPS via the Oversight Board and ultimately the State Department of Finance.

The proposed SA budgets can be found in the Fiduciary Funds section of the 2026/27 – 2027/28 Operating Budget, Attachment 5 - Exhibit B, on page 167.

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FY 2026/27 PAY SCHEDULE
In FY 2024/2025, the City reached agreement with all six bargaining groups and the agreements expire June 30, 2027. The MOUs outline the salary adjustments approved during the term of the agreements. In addition, the City approved the Compensation Summary, also expiring June 30, 2027, for Unrepresented Executive and Senior Management Employees. The salary adjustments reflected in the FY 2026/2027 Pay Schedule presented tonight for approval include the salary information for the six bargaining groups and unrepresented executive and senior management employees previously approved by Council in November, December, February, March, April, and June of FY 2024/2025.

California Code of Regulations, Title 2, Section 570.5 requires California Public Employers’ Retirement System (CalPERS) employers to make a Council approved Pay Schedule publicly available for not less than five years. Staff recommends Council approve the Pay Schedule (Exhibit C) for FY 2026/2027, and authorize the City Manager or designee, in consultation with the City Attorney, to make ministerial revisions to the Pay Schedule.

AGREEMENT WITH CONTRA COSTA COUNTY FOR SELF-SERVICE SUNDAY

LIBRARY HOURS
At the April 28, 2026 City Council meeting, the County Librarian made a presentation on the County Library’s Self-Service Sunday program. The proposed Self-Service Sunday model would allow the Brentwood Library to operate on Sundays from 12:00 p.m. to 5:00 p.m. without onsite library staff. Instead, the library would operate with security personnel present while patrons access services independently using selfcheckout and automated entry systems. The County Librarian stated that the initial six participating libraries would be fully funded by the County in perpetuity, resulting in no cost to the City of Brentwood for this program.

To participate in the Self-Service Sunday program, patrons would need to meet several eligibility requirements. Participants must be at least 13 years old, possess a library card in good standing, have no recent library suspensions, complete an online orientation, and sign a user agreement in person. Minors between 13 and 18 years old would require parental or guardian authorization. Younger children could enter only while accompanied by a parent or guardian.

Approved users would gain access by scanning their library card and entering a PIN at the library entrance. Library policies applicable during normal operating hours would continue to apply during Self-Service Sundays. Security guards would be trained in library policies, and library staff would remain on call during Sunday operations. The County Librarian noted that the first implementation site at the

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Concord Library, launched in December 2024, had experienced no operational or security issues to date.

At the April 28, 2026 meeting, the City Council gave direction to proceed with next steps with the County to provide Self-Service Sunday library hours. If the City Council approves the agreement in tonight’s action implementation of the program at the Brentwood Library is estimated to begin in the first quarter of calendar year 2027.

CITY COUNCIL STRATEGIC INITIATIVE
Not Applicable.

PREVIOUS ACTION
Previous Action by the City Council is included on Attachment 1.

DATE OF NOTICE
The City of Brentwood published a public hearing notice in the Brentwood Press and a draft of the 2026/27 – 2027/28 Operating Budget was made available on the City’s website on June 12, 2026.

ENVIRONMENTAL DETERMINATION
This action has been found to be exempt from the requirements of the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15378(b)(4), as it relates to the creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. To the extent the action authorizes the agreement with Contra Costa County for Self-Service Sunday library hours, that action is also not a “project” under CEQA Guidelines Section 15378 because it concerns administrative and operational activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment.

ALTERNATIVE OPTIONS

1. Do not adopt the proposed 2026/27 – 2027/28 Operating Budget. If the 2026/27 – 2027/28 Operating Budget is not adopted, the City would not be

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able to make payments on any obligations, as there would be no legal budget appropriations.

2. Adopt the proposed 2026/27 – 2027/28 Operating Budget with modifications provided by City Council.

3. Continue the item with direction for staff to return with additional information. A continuation of the adoption of the 2026/27 – 2027/28 Operating Budget would not allow City to make payments on any obligations, as there would be no legal budget appropriations.

ATTACHMENTS

1. Previous Action

2. Resolution

3. Successor Agency Resolution

4. Exhibit A – FY 2025/26 Budget Amendments and General Fund - Fund Balance Restrictions and Commitments

5. Exhibit B – 2026/27 – 2027/28 Operating Budget Draft

6. Exhibit C – FY 2026/27 Pay Schedule

7. Exhibit D - Contra Costa County Library Self-Service Sunday Agreement

PREVIOUS ACTION
Previous actions related to this agenda item that were taken by the Council are listed below. To view prior actions and materials, and Brentwood Municipal Code references in the staff report, as applicable:
 Visit www.brentwoodca.gov/meetings, and select the meeting date(s) desired to see the reference materials and videos.
 Visit www.brentwoodca.gov/municipalcode to research references to the Brentwood Municipal Code and search by the code section(s) cited.

On January 10, 2012, the City Council of the City of Brentwood adopted Resolution No. 2012-07, determining that the City Council would serve as the successor agency to the Brentwood Redevelopment Agency.

On February 22, 2022, the City Council adopted resolution 2022-25 to 1) Receive the people, time and financial analysis of the draft City of Brentwood Strategic Plan FY 2022/23 - FY 2023/24; and 2) Adopt the draft City of Brentwood Strategic Plan FY 2022/23 - FY 2023/24; and 3) Direct staff to incorporate City of Brentwood Strategic Plan FY 2022/23 - FY 2023/24 costs into the Operating and CIP Budgets and the City's ten-year General Fund Fiscal Model; and 4) Approve the addition of six (6) new full-time positions and incorporate the costs associated with the new positions into the FY 2022/23 and FY 2023/24 Operating Budget and direct staff to incorporate strategic plan costs into the Operating and CIP Budgets and the City’s ten-year General Fund Fiscal Model.

On November 12, 2024, the City Council adopted Resolution 2024-122, approving the Pay Schedule in accordance with the California Code of Regulations, Title 2, Section 570.5 and authorizing the Director of Human Resources/Risk Manager to make ministerial revisions to the Pay Schedule as approved by Council in the Brentwood Police Officers’ Association Memorandum of Understanding (MOU).

On December 10, 2024, the City Council adopted Resolution 2024-133, approving the Pay Schedule in accordance with the California Code of Regulations, Title 2, Section 570.5 and authorizing the Director of Human Resources/Risk Manager to make ministerial revisions to the Pay Schedule as approved by Council in the Brentwood Police Lieutenants’ Group MOU.

On February 11, 2025, the City Council adopted Resolution 2025-15 and 2025-16, approving the Pay Schedule in accordance with the California Code of Regulations, Title 2, Section 570.5 and authorizing the Director of Human Resources/Risk Manager to make ministerial revisions to the Pay Schedule as approved by Council in the Brentwood Managers and Confidential Employees Association MOU and the Compensation Summary for City of Brentwood Unrepresented Executive and Senior Management Employees, respectively.

On March 25, 2025, the City Council adopted Resolution 2025-34, approving the Pay Schedule in accordance with the California Code of Regulations, Title 2, Section 570.5, and authorizing the Director of Human Resources/Risk Manager to make

ministerial revisions to the Pay Schedule as approved by the City Council in the Brentwood Supervisors and Professional Employees Association MOU.

On April 28, 2026, the Contra Costa County Librarian made a presentation on the County Library’s Self-Service Sunday program; and the City Council gave direction to proceed with next steps with the County to provide Self-Service Sunday library hours at the Brentwood library at no cost to the City; and On April 22, 2025, the City Council adopted Resolution 2025-40, approving the Pay Schedule in accordance with the California Code of Regulations, Title 2, Section 570.5, and authorizing the Director of Human Resources/Risk Manager to make ministerial revisions to the Pay Schedule as approved by the City Council in the Brentwood Employees Association Public Works Division MOU.

On June 10, 2025, the City Council adopted Resolution 2025-62, approving the Pay Schedule in accordance with the California Code of Regulations, Title 2, Section 570.5, and authorizing the Director of Human Resources/Risk Manager to make ministerial revisions to the Pay Schedule as approved by the City Council in the Brentwood Employees Association Miscellaneous Office Division MOU.

On July 1, 2025, the City Council adopted Resolution 2025-72, approving the FY 2025/2026 Pay Schedule in accordance with the California Code of Regulations, Title 2, Section 570.5, and authorizing the City Manager or Designee, in consultation with the City Attorney, to make ministerial revisions it.

On January 13, 2026, the Successor Agency adopted Resolution 2026-01-SA of the Successor Agency to the Brentwood Redevelopment Agency, approving the Recognized Obligation Payment Schedule (“ROPS”) and Administrative Budget for July 2026 – June 2027, and authorizing the Director of Finance and Information Systems and/or his designee, in consultation with General Counsel, to make minor adjustments thereto as necessary to secure approval of the ROPS and/or the Administrative Budget by the State Department of Finance; and to undertake other actions necessary to carry out the purposes of the resolution.

On May 26, 2026, the City Council adopted Resolution 2026-44, adopting the 2026/27 – 2030/31 Capital Improvement Program (CIP).

RESOLUTION NO. 2026-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BRENTWOOD AMENDING THE 2025/26 OPERATING BUDGET;
ADOPTING THE 2026/27 – 2027/28 OPERATING BUDGET;
APPROVING THE ADDITION OF SEVEN (7.0) NEW FULL-TIME
POSITIONS AND ONE (1.0) NEW PERMANENT PART-TIME
POSITION TO THE CITY STAFF; AMENDING THE 2025/26 FUND

BALANCE RESTRICTIONS AND COMMITMENTS IN THE GENERAL
FUND; APPROVING THE 2026/27 PAY SCHEDULE; AND

APPROVING AN AGREEMENT WITH CONTRA COSTA COUNTY

FOR SELF-SERVICE SUNDAY LIBRARY HOURS
WHEREAS, on February 22, 2022, the City Council adopted Resolution 2022- 25 to (1) receive the people, time and financial analysis of the draft City of Brentwood Strategic Plan FY 2022/23 - FY 2023/24; and (2) adopt the draft City of Brentwood Strategic Plan FY 2022/23 - FY 2023/24; and (3) direct staff to incorporate City of Brentwood Strategic Plan FY 2022/23 - FY 2023/24 costs into the Operating and CIP Budgets and the City's ten-year General Fund Fiscal Model; and (4) approve the addition of six (6) new full-time positions and incorporate the costs associated with the new positions into the FY 2022/23 and FY 2023/24 Operating Budget and to direct staff to incorporate strategic plan costs into the Operating and CIP Budgets and the City’s ten-year General Fund Fiscal Model; and
WHEREAS, on March 17, 2026, the 2026 Budget and Debt Management AdHoc Committee held a meeting with Finance Department staff and reviewed the proposed draft 2026/27 – 2030/31 Capital Improvement Program; and WHEREAS, on April 14, 2026, the City Council conducted a workshop on the draft 2026/27 – 2030/31 Capital Improvement Program (“CIP”) and, by motion, directed staff to accept the CIP as presented with the following additions: add a CIP project for a bathroom at Heron Park, move Walnut Park Improvements up to 2026/27, move Lake Park Improvements back (to 2029/30), leave Oak Meadow Park Improvements as it was listed in the agenda packet (2026/27), move Caboose Park Improvements back by a year (to 2027/28), and to continue efforts to move the Pickleball Courts from Creekside Park; and
WHEREAS, on April 28, 2026, the Contra Costa County Librarian made a presentation on the County Library’s Self-Service Sunday program; and the City Council gave direction to proceed with next steps with the County to provide SelfService Sunday library hours at the Brentwood Library at no cost to the City; and WHEREAS, on May 1, 2026, the 2026 Budget and Debt Management Ad-Hoc Committee held a meeting with Finance Department staff and reviewed the proposed draft 2026/27 – 2027/28 Operating Budget (“Budget”), General Fund FY 2025/26 year-end projection, two-year General Fund Budget projection, General Fund Reserves, and significant changes, cost increases, and new budgetary requests; and

WHEREAS, on May 26, 2026, the City Council was presented with a draft of the proposed 2026/27 – 2027/28 Operating Budget and conducted a workshop for review, comment and direction on the Operating Budget and draft ten-year General Fund Fiscal Model; and
WHEREAS, the City departments have submitted requests for appropriations to fund the departmental programs to provide services for the City of Brentwood; and
WHEREAS, the City Council reviewed these specific departmental requests and discussed City priorities for the expenditure of City funds at the City Council workshop on May 26, 2026; and
WHEREAS, on May 26, 2026, the City Council adopted Resolution 2026-44, adopting the 2026/27 – 2030/31 Capital Improvement Program (CIP); and WHEREAS, the City Council of the City of Brentwood has reviewed the financial condition of the City of Brentwood; and
WHEREAS, the two-year Operating Budget does not commit to spending more than a realistic estimate of revenues; and
WHEREAS, the budgets for the addition of seven (7.0) new full-time positions and one (1.0) new permanent part-time position are incorporated into the 2026/27 -2027/28 Operating Budget; and
WHEREAS, the General Fund is budgeted to maintain 30% General Fund Unassigned Fund Balance for each year of the Operating Budget; and WHEREAS, California Code of Regulations, title 2, section 570.5 requires California Public Employees’ Retirement System employers to approve and make publicly available a pay schedule meeting the requirements of that section.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Brentwood hereby:

1. Finds this action to be exempt from the requirements of the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15378(b)(4), as it relates to the creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment; and

2. Finds that, to the extent this action approves an agreement with Contra Costa County for Self-Service Sunday library hours, that action is not a “project” under CEQA Guidelines Section 15378(b)(5) because it concerns organizational or administrative activities of government that will not result in direct or indirect physical changes in the environment; and

3. Amends the FY 2025/26 Operating Budget as detailed in Exhibit A, which is incorporated herein by reference; and

4. Amends the 2025/26 fund balance restrictions and commitments in the General Fund, as detailed in Exhibit A, which is incorporated herein by reference; and

5. Adopts the revenues and appropriations as detailed in the 2026/27 – 2027/28 Operating Budget as detailed in Exhibit B, which is incorporated herein by reference; and

6. Approves the addition of seven (7.0) new full-time positions and one (1.0) new permanent part-time position to the City staff commencing in FY 2026/27, as follows:

One (1.0) Utilities Maintenance Mechanic
One (1.0) Senior Mechanic
One (1.0) Management Analyst I/II
Three (3.0) Solid Waste Equipment Operator I/II
One (1.0) Mechanic I/II
One (1.0) Administrative Assistant I/II (permanent part-time); and

7. Approves and adopts the FY 2026/2027 Pay Schedule, which is attached and incorporated by reference as Exhibit C and authorizes the City Manager or designee, in consultation with the City Attorney, to make ministerial revisions to the FY 2026/2027 Pay Schedule, provided that any such revisions shall not alter salary ranges, benefits, or other substantive compensation terms unless otherwise approved by the City Council; and

8. Approves the agreement with Contra Costa County for Self-Service library hours, Exhibit D, which is incorporated herein by reference and authorizes the City Manager to execute an agreement in a form approved by the City Attorney, and to take all actions reasonably necessary to implement the agreement.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 23rd day of June 2026 by the following vote:

SUCCESSOR AGENCY RESOLUTION NO. 2026-XX-SA

A RESOLUTION OF THE GOVERNING BOARD OF THE SUCCESSOR

AGENCY TO THE BRENTWOOD REDEVELOPMENT AGENCY
ADOPTING THE 2026/27 – 2027/28 OPERATING BUDGET FOR

THE FORMER BRENTWOOD REDEVELOPMENT AGENCY FUNDS

NOW ADMINISTERED BY THE SUCCESSOR AGENCY
WHEREAS, on January 10, 2012, the City Council of the City of Brentwood adopted Resolution No. 2012-07 determining that the City of Brentwood would serve as the successor agency to the Brentwood Redevelopment Agency; and WHEREAS, the legislation governing the dissolution of redevelopment required the establishment of a Redevelopment Obligation Retirement Trust Fund; and
WHEREAS, on January 14, 2025, the Successor Agency adopted Resolution 2025-01-SA of the Successor Agency to the Brentwood Redevelopment Agency, approving the Recognized Obligation Payment Schedule (“ROPS”) and Administrative Budget for July 2025 – June 2026, and authorizing the Director of Finance and Information Systems or their designee, in consultation with General Counsel, to make minor adjustments thereto as, necessary, to secure approval of the ROPS and/or the Administrative Budget by the State Department of Finance; and to undertake other actions necessary to carry out the purposes of the resolution; and WHEREAS, on January 13, 2026, the Successor Agency adopted Resolution 2026-01-SA of the Successor Agency to the Brentwood Redevelopment Agency, approving the Recognized Obligation Payment Schedule (“ROPS”) and Administrative Budget for July 2026 – June 2027, and authorizing the Director of Finance and Information Systems and/or their designee, in consultation with the General Counsel, to make minor adjustments thereto, as necessary, to secure approval of the ROPS and/or the Administrative Budget by the State Department of Finance; and to undertake other actions necessary to carry out the purposes of the resolution; and WHEREAS, the proposed 2026/27 – 2027/28 Operating Budget for the former Brentwood Redevelopment Agency Funds includes appropriations necessary for the Successor Agency to administer enforceable obligations, administrative costs, and related activities, subject to applicable approvals required by law; and WHEREAS, the appropriations requested will allow the Successor Agency to fulfill its legal duties and responsibilities; and
WHEREAS, this action is not a project within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15378(b)(4), because it concerns government funding mechanisms or other government fiscal activities that do not involve any commitment to any specific

project that may result in a potentially significant physical impact on the environment.

NOW, THEREFORE, BE IT RESOLVED that the Governing Board of the Successor Agency to the Brentwood Redevelopment Agency hereby:

1. Finds and determines that the foregoing recitals are true and correct and are incorporated herein by this reference; and

2. Approves and adopts the 2026/27 – 2027/28 Operating Budget for former Brentwood Redevelopment Agency Funds now administered by the Successor Agency as further specified in the attached Exhibit B, which is incorporated herein by reference.

PASSED, APPROVED, AND ADOPTED by the Governing Board of the Successor Agency to the Brentwood Redevelopment Agency at a regular meeting held on the 23rd day of June 2026 by the following vote:

Fund Name Revenue Expenditure Net Effect on Fund
General Fund:

Transfers In/Out - $ 330,000 $ (330,000) $
Sub-Total General Fund - 330,000 (330,000)
Other Funds:

Roadway Development Impact Fee 330,000 $ - $ 330,000 $
First-Time Homebuyer 75,000 - (75,000)
City Low Income Housing - 6,000 (6,000)
Landscape and Lighting Assessment Districts (LLAD) - 7,284 (7,284) Sub-Total Enterprise and Other Funds 330,000 88,284 241,716 Total 2025/26 Amendments 330,000 $ 418,284 $ (88,284) $ FY 2024/25
Final Original Amended
Committed:

General Plan Update 622,600 $ 984,900 $ 1,350,000 $
City Council Redistricting 125,000 150,000 150,000
Future Capital Projects 800,000 800,000 800,000
Heron Park Restroom Project - - 500,000
Future Strategic Initiatives - 364,960 171,960
Police Department 5th Beat 2,363,275 2,363,275 2,363,275 Successor Agency Payment Plan - 687,303 -
Total Committed 4,963,138 4,298,175 5,335,235
Total Restricted and Committed 4,963,138 $ 4,298,175 $ 5,335,235 $ FY 2025/26
Exhibit A
Appropriation Amendments to the 2025/26 Operating Budget of the City of Brentwood and Amendments to the 2025/26 General Fund - Fund Balance Restrictions and Commitments Fiscal Year 2025/26 Budget Amendments
Increase (Decrease)
General Fund - Fund Balance Restrictions and Commitments

2026/27 - 2027/28
Operating
Budget
City of Brentwood
California
Exhibit B

2 2026/27 – 2027/28 Operating Budget

TABLE OF CONTENTS

INTRODUCTION
Table of Contents ...............................................................................................................................................................2 City Council and Executive Team .................................................................................................................................4 City Organization Chart ...................................................................................................................................................5 Brentwood at a Glance .....................................................................................................................................................6 Budget Awards .................................................................................................................................................................. 15 Accomplishments ............................................................................................................................................................. 16 City Manager’s Message .............................................................................................................................................. 17 Executive Summary ......................................................................................................................................................... 20 Strategic Plan .................................................................................................................................................................... 28 Budget Process ................................................................................................................................................................. 30 Fund Structure .................................................................................................................................................................. 33 Long-Term Debt .............................................................................................................................................................. 36 Capital Improvement Program Overview .............................................................................................................. 42

CITYWIDE SUMMARIES
Fund Balance Summary ................................................................................................................................................ 48 Operating Budget Summary ....................................................................................................................................... 49 FY 2026/27 Summary of Activities by Fund Type ............................................................................................... 50 FY 2026/27 Fund Balance by Fund ........................................................................................................................... 51 Summary of Revenues and Expenditures by Fund Type .................................................................................. 54 Detail of Expenditures by Category ......................................................................................................................... 55 Summary of Expenditures by Category .................................................................................................................. 56 Summary of Expenditures by Category and Fund Type ................................................................................... 57

TEN-YEAR PROJECTIONS
General Fund ..................................................................................................................................................................... 59 Solid Waste Enterprise Fund ....................................................................................................................................... 60 Water Enterprise Fund ................................................................................................................................................... 61 Wastewater Enterprise Fund ....................................................................................................................................... 62 Housing Enterprise Fund .............................................................................................................................................. 63

FUND BALANCES
Fund Balances ................................................................................................................................................................... 64 General Fund ..................................................................................................................................................................... 66 Other Funds ....................................................................................................................................................................... 67 Summary of Changes in Fund Balance ................................................................................................................... 69

REVENUES
FY 2026/27 General Fund Revenue by Category ................................................................................................ 70 General Fund Revenue Summary .............................................................................................................................. 71 General Fund Schedule of Interfund Transfers In ............................................................................................... 72 Major General Fund Recurring Revenue Sources ............................................................................................... 73 Other City Revenue Sources ....................................................................................................................................... 80 FY 2026/27 Citywide Revenue by Fund Type ....................................................................................................... 83 Revenue Summary by Fund ........................................................................................................................................ 84

3 2026/27 – 2027/28 Operating Budget

EXPENDITURES
FY 2026/27 General Fund Expenditure Summary ............................................................................................... 87 General Fund Expenditure Summary ....................................................................................................................... 88 General Fund Schedule of Interfund Transfers Out ........................................................................................... 89 General Fund Expenditures by Category ............................................................................................................... 90 General Fund Expenditures ......................................................................................................................................... 91 FY 2026/27 Citywide Expenditures by Fund Type .............................................................................................. 94 Citywide Expenditures ................................................................................................................................................... 95 Expenditure Summary by Fund .................................................................................................................................. 97

DEPARTMENT AND PERFORMANCE BUDGETS
Introduction to Department and Performance Budgets ................................................................................100 Legislative .........................................................................................................................................................................101 City Manager ...................................................................................................................................................................104 City Attorney ...................................................................................................................................................................111 Community Development ..........................................................................................................................................117 Engineering ......................................................................................................................................................................124 Finance and Information Systems ...........................................................................................................................131 Human Resources .........................................................................................................................................................138 Parks and Recreation ...................................................................................................................................................144 Police ..................................................................................................................................................................................152 Public Works ...................................................................................................................................................................158

FIDUCIARY FUNDS
Special Assessment Districts .....................................................................................................................................166 Successor Agency ..........................................................................................................................................................167

APPENDIX
2026/27 – 2027/28 Operating Budget, Resolution No. 2026-XX ...............................................................168 2026/27 Proposition 4 Appropriations Limit, Resolution No. 2026-49 ....................................................170 Constitutional Spending Limits ................................................................................................................................171 Personnel Summary Allocations by Department ..............................................................................................173 Fund Expenditure Summary by Division ..............................................................................................................189 Vehicle and Equipment Replacement Schedule - Fund 702 ........................................................................200 Department Top 100 Priority Projects ...................................................................................................................202 Glossary of Terms ..........................................................................................................................................................211 Acronyms ..........................................................................................................................................................................225 Guide to Funds – Description of Funds ................................................................................................................226

4 2026/27 – 2027/28 Operating Budget
City Council
Susannah Meyer....................................................................................................................................................... Mayor Pa’tanisha Pierson...........................................................................................................................................Vice Mayor Faye Maloney.........................................................................................................................................Council Member Jovita Mendoza ....................................................................................................................................Council Member Tony Oerlemans ..................................................................................................................................Council Member Executive Team
G. Harold Duffey.........................................................................................................................................City Manager Thomas Lloyd Smith...................................................................................................................................City Attorney Terrance Davis ..........................................................................................................................Assistant City Manager E. Harith Aleem, Jr................................................................................................Director of Parks and Recreation Allen Baquilar...............................................................................................Director of Engineering/City Engineer Kerry Breen .......................................................City Treasurer/Director of Finance and Information Systems Teresa Fairbanks ............................................................ Interim Director of Human Resources/Risk Manager Alexis Morris................................................................................................. Director of Community Development Walter O’Grodnick .........................................................................................................................Interim Police Chief Casey Wichert........................................................................................................................Director of Public Works Boards and Commissions
Arts Commission
Parks and Recreation Commission
Planning Commission
Triad
Youth Commission

5 2026/27 – 2027/28 Operating Budget

CITY ORGANIZATIONAL CHART

6 2026/27 – 2027/28 Operating Budget

BRENTWOOD AT A GLANCE

7 2026/27– 2027/28 Operating Budget

8 2026/27 – 2027/28 Operating Budget
History
The modern history of Brentwood can be traced back to 1837, when Dr. John Marsh purchased the 13,316-acre Rancho Los Meganos land grant from Jose Noriega. Dr. Marsh was one of the wealthiest men in California and among the first non-Native Americans to inhabit the region. Brentwood was named after Marsh's ancestral home, the town of Brentwood in the County of Essex, England. Dr. Marsh built a stone mansion in the hills on the southern border of Brentwood, now the cornerstone of the Marsh Creek State Historic Park.

Following the murder of Dr. Marsh, Rancho Los Meganos was sold to the Brentwood Coal Mining Corporation. The opening of the Brentwood Coal Mines and plans for a future railroad in the area led to the initial layout of Brentwood.

Balfour, Guthrie & Co., a British investment company, purchased Rancho Los Meganos in 1910. This led to farming development in Brentwood, as land was subdivided and the first irrigation system built.

Balfour Guthrie also built the Brentwood Hotel at Oak Street and Brentwood Boulevard, across from the railroad station. This replaced an earlier hotel on the same site that had burned down in 1903. The hotel, which was demolished in 1967, served as the inspiration for the Civic Center buildings built in 2011.

Today, Brentwood is bordered by the
Contra Costa County Agricultural Core
which consists of 11,000 acres of
preserved and still actively productive
farm land. The landscape to the west is
marked by rolling hills, oak trees, fruit
orchards and vineyards.

Brentwood experienced a significant
development phase from the mid
1990’s to the mid 2000’s, but is still
known throughout the Bay Area for its
agricultural products and U-pick farms,
primarily cherries, corn and peaches.

Known as the “U-Pick Capital of the
World”, the U-pick farm experience
generates over 600,000 visitors to
Brentwood each year.

Recreation
Brentwood is part of the East Bay Regional Park District, a special district operating in the East Bay counties of Alameda and Contra Costa. In addition, Brentwood has its own Parks and Recreation Department. The City currently has 247 developed acres of parkland, 100 award winning parks and facilities, 20 miles of trails and 63 miles of bike lanes. Over 150 recreational activities and events are offered each year for people of all ages and interests.

9 2026/27 – 2027/28 Operating Budget
Development
The housing market has been one of
the stronger sectors of economic
growth over the last decade. The
City’s affordable prices by Bay Area
standards, along with Brentwood’s
reputation as a family community,
have led to continued demand for
new housing. During FY 2023/24
and FY 2024/25, the City issued 57
and 51 single-family building
permits, respectively, along with 0
and 3 multi-family unit permits,
respectively. Consistent with the City’s General Plan and as the community moves closer to build-out, single-family residential development is expected to taper off, while multi-family permitting is expected to increase. Non-residential development activity is projected to remain stable throughout the two-year Operating Budget period.

Below are the building permit projections for the next two fiscal years:

FY 2026/27 FY 2027/28
Single-Family Units 175 125
Multi-Family Units 100 200
Commercial, Office, Industrial Sq. Ft. 75,000 75,000
Cumulative Citywide Housing Unit Total 22,768 23,093
Brentwood is home to a diverse retail sector and a variety of office, flex-office, and light-industrial businesses. A key objective in the upcoming two-year period is job creation and business development.

The Innovation Center @ Brentwood Infrastructure (“Innovation Center”) is a 373-acre project site located in the northwest corner of Brentwood and a projected focal point for jobs and mixed-use development. The City Council has authorized the construction of both roadway and utility infrastructure at the Innovation Center. The extension of Sand Creek Road through the area was recently completed, and is expected to spur business development. A new Costco was opened in 2024/25 in the Innovation Center area, creating new jobs, and also supporting the goal of business development.

Employment
Brentwood is part of Contra Costa County, one of nine counties which comprise the San Francisco Bay area. As reported for the December 2025 period, Brentwood had a labor force of 29,500 and 4.8% unemployment rate, while Contra Costa County had a labor force of 556,700 with an unemployment rate of 4.5%.

Information Sources for Brentwood at a Glance:

History: Footprints in the Sand by Kathy Leighton
Population Data: U.S. Census Bureau
Employment: California Employment Development Department Sales Tax/Principal Employers: HdL Companies

10 2026/27 – 2027/28 Operating Budget
All Other Information: City of Brentwood/Applied Geographical Solutions, 2024

11 2026/27– 2027/28 Operating Budget

12 2026/27 – 2027/28 Operating Budget
2025 Top 25 Sales/Use Tax Producers – 4th Quarter
(In Alphabetical Order)
2025 Principal Employers
(In Alphabetical Order)
Bill Brandt Ford BJ’s Restaurant &
Brewhouse Black Angus Brentwood Union School District City of Brentwood Costco Wholesale Golden State
Orthopedic Home Depot John Muir Health Kohl’s
Liberty Union High
School District Merrill Gardens Precision Cabinets Raley’s Rodda Electric, Inc.

Safeway Stores,
Inc.

Save Mart
Supermarket
(FoodMaxx)
Thorpe Design,
Inc.

Town & Country
Roofing WinCo Foods, Inc.
7 Eleven Ace Hardware America’s Tire Arco AM PM Bill Brandt Ford BJ’s Restaurant &
Brewhouse
Brentwood Ready
Mix Chevron Chipotle Costco Wholesale
Home Depot Home Goods In N Out Burger Kohl’s Marshalls
Power Market Ross Rotten Robbie Safeway Sportsman’s
Warehouse
TJ Maxx Ulta Beauty Verizon Wireless Walgreens Co. WinCo Foods, Inc.

13 2026/27 – 2027/28 Operating Budget
(1) Data updated to only report street lights maintained by the City.

Public Safety (FY 2025)
Police
Sworn Officers 72
Vehicles 43
Motorcycles 5
Infrastructure and Utilities (FY 2025)
Streets 226 miles
Sanitary Sewers 251 miles
Water Mains 358 miles
Street Lights (1) 7,463
Sanitary Lift Stations 3
Wastewater Connections 21,686
Average Daily Wastewater Flow 4.33 MGD
Water Wells 6
Water Reservoirs 6
Water Connections 21,188
Water Storage Capacity 19 MG
Average Daily Water Consumption 10.71 MGD
Peak Daily Water Consumption 16.33 MGD
Residential Solid Waste Services 20,850
Commercial Solid Waste Services 525
Public Schools (FY 2025)
Elementary Schools 9
Intermediate Schools 3
High Schools 2
Alternative High Schools 2

14 2026/27 – 2027/28 Operating Budget
Vision and Culture
We are an organization of dedicated professionals working together to make Brentwood the very best, preserving its rich heritage and keeping Brentwood in the hearts of the people.

CORE VALUES
Integrity
Passion
Accountability
Respect
Quality
Mission Statement
Bringing Brentwood’s Vision to Reality

15 2026/27 – 2027/28 Operating Budget

BUDGET AWARDS
The Government Finance Officers Association
(GFOA) and the California Society of Municipal
Finance Officers (CSMFO) offer a recognition
program for public entities to determine whether the
City conforms to the highest level of governmental
accounting and financial reporting standards.

The GFOA and CSMFO awarded the Distinguished
Budget Presentation Award and Operating
Budget Excellence Award, respectively, to the City
of Brentwood for its 2024/25 – 2025/26 Operating
Budget. Its attainment represents a significant
accomplishment by a government and its
management.

16 2026/27 – 2027/28 Operating Budget

ACCOMPLISHMENTS
The City prides itself on providing quality services to the community. Following is a list of awards acknowledging these achievements in quality.
❖ George Fuller Award (2025) received by a Regulatory
Compliance Supervisor for exemplary service and outstanding contributions toward the advancement of water works
practices.
❖ California Highway Patrol’s 10851 Award received by five City Police Officers during FY 2024/25 and FY 2025/26 for stolen vehicle enforcement.
❖ The City maintained designation as a Tree City USA
Community in 2024, as recognized by the Arbor Day
Foundation.
❖ The City received the following California Park and Recreation Society (CPRS) District 3 Awards in FY 2024/25 and FY 2025/26:
• Justice, Equity, Diversity and Inclusion Impact Award – Juneteenth Celebration 2024 • Outstanding Non-Profit Organization Partner in Parks & Recreation – Be Exceptional • Outstanding Non-Profit Organization Partner in Parks & Recreation – Downtown Brentwood Coalition
• Recreation Supervisor installed as CPRS District 3 President ❖ The City received the following Best of Brentwood awards from ThePress.net:
• Best Government Spending: City of Brentwood Parks and Recreation (2025 - Silver) • Favorite Community Event: Concerts in the Park (2025 - Gold) • Favorite Park: Veterans Park (2024 - Gold; 2025 - Gold) City Park (2024 - Silver; 2025 - Bronze) and Creekside Park (2025 - Silver)
• Event Center: Brentwood Community Center (2024 – Bronze; 2025 – Silver) • Place for Swim Lessons: Brentwood Family Aquatic Complex (2024 – Silver; 2025 – Bronze)
• Place for Family Recreation: Brentwood Family Aquatic Complex (2024 – Silver; 2025 – Bronze)
• Place for Live Music – Concerts in the Park (2024 – Bronze; 2025 – Bronze) • Best Place for a Hike or Stroll: Creekside Park (2025 – Bronze) • Best Place to Show a Visitor: Downtown Brentwood (2025 - Gold) ❖ The City received the following GFOA awards:
• Certificate of Achievement for Excellence in Financial Reporting Fiscal Year 2023/24 • Distinguished Budget Presentation Award for the two-year Operating Budget beginning July 1, 2024
❖ The City received the following CSMFO awards:
• Operating Budget Excellence Award Fiscal Years 2024/25 and 2025/26 • Capital Budget Excellence Award Fiscal Year 2023/24 and Fiscal Year 2024/25

17 2026/27 – 2027/28 Operating Budget
June 2026
The Honorable Mayor, Members of the City Council and Citizens of Brentwood Brentwood, California 94513
Dear Mayor Meyer, Members of the City Council and Citizens of Brentwood:

I am pleased to submit to you a balanced two-year budget for the City of Brentwood covering fiscal years 2026/27 and 2027/28. This budget prioritizes quality of life for our citizens and continues to support the delivery of high quality and essential services to our residents while maintaining appropriate levels of reserves and fiscal responsibility and positioning the City for its long-term vision.

Coming out of the pandemic, the City benefited from growth in property and sales tax revenues driven by rising home values and elevated consumer spending. More recently broader economic conditions have shifted and trends have moderated. As a result, this budget reflects a more cautious outlook and incorporates conservative revenue assumptions to account for a more uncertain economic environment.

Fiscal Discipline and Budgeting Pillars
The City’s budget is developed using a disciplined, policy-driven framework built upon several core fiscal pillars designed to ensure long-term sustainability prior to allocating resources to operations or new initiatives. These pillars include maintaining the City’s General Fund reserve at 30 percent, addressing long-term obligations such as pension and retiree medical liabilities, and ensuring that future capital and replacement needs are fully funded. In addition, the City maintains a structurally balanced budget, avoiding the use of one-time revenues for ongoing expenditures.

A key component of these pillars is the City’s Ten-Year General Fund Fiscal Model, which incorporates projected revenues and expenditures as well as future operating costs associated with planned facilities and programs. The model utilizes actuarial projections for pension, retiree medical, and healthcare cost trends to ensure that long-term financial planning reflects realistic assumptions. This disciplined approach allows the City to identify potential challenges early and adjust over time to maintain fiscal stability and provides the foundation for establishing priorities and allocating resources through the City’s Strategic Plan.

Strategic Plan Alignment
The City’s budget is directly aligned with the City Council’s Strategic Plan, which establishes priorities across key service areas and guides the allocation of resources. To support this alignment, each department has identified high priority programs and initiatives, collectively representing over 100 projects (see Appendix), that advance the City’s long-term vision for the community in preparation for “Brentwood 2035”. Brentwood 2035 is an initiative designed to ensure that the City’s infrastructure and service levels continue to align with the City’s General Plan and with the needs of the community in 2035.

18 2026/27 – 2027/28 Operating Budget
This structured approach ensures that resources are directed toward clearly defined priorities and that projects are not just identified, but actively managed and delivered in alignment with City Council objectives. By linking strategic planning with departmental priorities and the budget process, the City can maintain focus on long-term goals while continuing to deliver high quality services to the community.

Key Initiatives and Capital Projects
This budget includes funding and appropriations necessary to support both ongoing service delivery and major capital initiatives that enhance community amenities and advance long-term economic development.

Operational resources have been allocated to maintain and enhance core City services while responding to growth and evolving community needs. This includes staffing and operational adjustments in key areas such as solid waste operations and infrastructure maintenance, as well as service enhancements such as the transition to weekly organic waste collection.

In addition to these operational investments, the budget advances several significant capital and strategic initiatives. These include the Sand Creek Sports Complex, which is expected to open in early 2027, the Vineyards at Marsh Creek Event Center/Amphitheater and the Brentwood Innovation Center infrastructure project.

Efforts to advance the Brentwood Innovation Center remain a key component of the City’s long-term economic development strategy. The project is intended to expand local employment opportunities, support workforce development, and reduce long commute patterns for Brentwood residents by attracting high-quality jobs to the community. The City is actively pursuing federal funding to support infrastructure development at the site, positioning the project for future investment opportunities.

Economic Outlook and Risks
While the economy has remained resilient, there are signs that economic growth may moderate. Higher borrowing costs have impacted consumer spending and slowed development activity. Property tax revenue growth has slowed in recent years and other major revenues including sales taxes and transient occupancy taxes are projected to show only modest gains.

In addition, the recent period of elevated inflation has increased the cost of providing services and delivering capital projects. With limitations on revenue generation, the City’s revenue growth may not keep pace with these elevated costs if inflationary pressures persist.

The City continues to evaluate the full cost of service delivery, including programs and services that are partially subsidized by the General Fund. This includes certain recreation programs, facility operations, and legacy landscape and lighting assessment districts established where revenue growth is constrained. While these services provide important community benefits, understanding their longterm financial impact allows the City Council to make informed policy decisions regarding service levels and funding priorities.

The City’s contracts with labor groups expire in June 2027, and while placeholder cost increases have been included in the budget, final outcomes may impact future financial projections.

19 2026/27 – 2027/28 Operating Budget
Adding to these challenges, the State continues to adopt regulatory requirements without accompanying funding. Costs for compliance in areas such as solid waste processing and fleet electrification have already impacted the budget, and future unfunded mandates are likely to add both infrastructure and ongoing operational costs in future years.

In addition, potential changes to pension-related legislation could significantly increase long-term costs by expanding benefits or modifying retirement provisions. While the outcome of such proposals remains uncertain, the City continues to monitor these developments and incorporate prudent assumptions into its long-term financial planning.

In recognition of potential future economic challenges, this budget reflects the City’s commitment to maintaining long term fiscal stability through disciplined financial management. The City’s General Fund 30% reserve is maintained, and the City Council’s policy of addressing pension and retiree medical obligations has resulted in the City’s funded pension level being well above the average in California.

These actions strengthen the City’s ability to manage future cost pressures and maintain long-term fiscal stability.

I would like to thank the City Council for their vision and attention to financial management policies that support long-term sustainability. I would especially like to express my appreciation to all of the City of Brentwood staff members who have taken the time to develop this budget. A great deal of effort and attention to detail has gone into the preparation of this document, representing many hours of work throughout the organization. A special thanks to the staff in the Finance and Information Systems Department for their work in preparing this budget which will serve as the City’s fiscal blueprint for the next two years.

It is my pleasure and honor to serve the City Council, staff and this community.

Sincerely,
G. Harold Duffey
City Manager

20 2026/27 – 2027/28 Operating Budget

EXECUTIVE SUMMARY
The Operating Budget is a flexible spending plan, which serves as the legal authority granted by the City Council to commit financial resources. The total Operating Budget expenditures for fiscal year (FY) 2026/27 is $366.4 million. The City of Brentwood provides a full range of services, including police; parks and recreation; public works; economic development; planning; building; community enrichment; engineering and inspection; housing and general administrative services. Brentwood operates public water and wastewater utilities and provides refuse collection and disposal. The City receives fire protection services from the Contra Costa County Fire Protection District (CCCFPD).

The General Fund is the primary operating fund for the City. The General Fund pays for most of the critical services offered to the City’s residents including police, streets and transportation, and parks and recreation. The majority of Community Development services and a significant portion of Engineering services are funded through development revenue (permit, inspection and other fees).

Parks and recreation user fees help offset a portion of the operational costs of the Parks and Recreation Department, with subsidies from the General Fund providing the balance. The majority of the remainder of services included in the General Fund are funded through tax revenues. General Fund revenues are generally considered unrestricted and are allocated by the City Council through this budget.

The shortfall between revenues and expenditures is a result of the use of General Fund balances that were committed in FY 2025/26 for remaining Strategic Initiative costs and the Comprehensive General Plan Update project.

Other:

Other Taxes & Fines: 5%
Other: 3%
Gas Tax: 2%
Transfers In: 2%
Other:

Transfers Out – 2%
Community Services – 2%

21 2026/27 – 2027/28 Operating Budget
The City provides residents with Solid Waste, Water and Wastewater services. The charges for these services (user fees), along with the costs for providing the services, are accounted for in the individual Enterprise Funds. These funds do not receive any General Fund support and must be self-supporting.

The City’s user fees are set in accordance with Proposition 218. Rate studies are conducted periodically to ensure the enterprise rates are sufficient to cover: operating expenses; capital improvements; upgrades and costs associated with meeting both State and Federal guidelines and regulations.

Key Budget Factors
In addition to the Budget Policies and Guidelines, found on page 30, the following budget items were key factors in the development of this budget.
• Personnel Costs
With personnel costs comprising approximately two-thirds of the General Fund budget, the status of the City’s labor contracts and the costs of providing negotiated benefits such as health care, retiree medical and pension benefits, will always play a significant role in the development of the budget.

Labor Contracts
The City’s labor agreements with all bargaining units are scheduled to expire at the end of FY 2026/27. The FY 2026/27 budget includes negotiated salary increases of 3.0% for both sworn and non-sworn employee groups. It also incorporates projected costs for health care and other negotiated benefits.

For FY 2027/28, the budget includes a placeholder cost-of-living adjustment of 3.0%.

Should future labor negotiations result in increases exceeding this assumption, personnel appropriations will be adjusted following the conclusion of negotiations, subject to City Council approval.

New Positions
The General Fund budget includes one new regular part-time Administrative Assistant I/II position (0.5 FTE) to support the Human Resources Division in addressing increased administrative demands associated with workforce growth. This position converts an existing limited-service role to a benefited, permanent part-time position.

To comply with State Senate Bill (SB) 1383 regulations for processing organic waste, collection service for organic materials will be increased from bi-weekly to weekly. This increased service level will require three additional Solid Waste Equipment Operator positions and one new Fleet Maintenance Services Mechanic position. The costs for these positions are included in the budget beginning in mid-FY 2026/27.

The budget also includes three new positions to address increases in workload. Two are allocated to Enterprise Funds and one to an Internal Service Fund. A Utilities Maintenance Mechanic position is added to the Wastewater Enterprise Fund to address increased maintenance demands associated with additional equipment. A Management Analyst position, allocated between the Water and Solid Waste Enterprise Funds, will support compliance with State organic waste regulations and drought-related regulatory requirements. In addition, a Senior Mechanic position is allocated to the Fleet Maintenance

22 2026/27 – 2027/28 Operating Budget
Services Fund to address increased workload driven primarily by the addition of new Solid Waste collection trucks and evolving regulatory requirements.

Other Post-Employment Benefits (OPEB)
In 2008, the City switched from a pay-as-you-go plan to a prefunding retiree medical benefits to address the City’s unfunded OPEB obligation. The City incrementally increased the payments toward the unfunded obligation each fiscal year, culminating in an annual payment equal to 85% of the annual Actuarial Determined Contribution (ADC). Once the City has achieved a status where 85% of the unfunded obligation has been paid, the City will continue contributions at a level percentage of payroll until the unfunded obligation is eliminated.

Based on the most recent valuation as of June 30, 2025, the City’s OPEB unfunded actuarial accrued liability decreased to $31.2 million, compared to $32.4 million as of June 30, 2024.

This decrease was due to favorable investment returns and demographic changes. While this prefunding plan is a fiscally responsible strategy, the annual funding commitment reduces the availability of funds for other purposes. As a result of the prefunding strategy, future OPEB costs are expected to remain manageable over the coming decade before declining significantly in approximately 14 years.

Pensions
The City contracts with the California Public Employees’ Retirement System (CalPERS) for pension benefits. Pensions are funded through a combination of employee contributions, employer contributions and investment returns. When shortfalls in the investment returns occur, the liability is typically borne by the employer. Most pension plans, including Brentwood’s, are underfunded as a result of CalPERS lowered investment return projections along with lingering impacts from the 2008 to 2010 recession. CalPERS FY 2024/25 investment returns were favorable with a net rate of return of 11.6 %, resulting in a projected 85% funded status as of June 30, 2025.

The strong funded status reflects continued efforts by the City to reduce unfunded obligations. Over the past two fiscal years, the City made pension prepayments of $6.9 million that were applied to the City’s unfunded pension obligations. Additionally, the City has established and funded an IRS-approved Section 115 trust program with Public Agency Retirement Services (PARS) with $8.0 million from the Pension/OPEB Obligation Fund. This strategy is designed to prefund pension costs and address pension liabilities and can help to mitigate long-term contribution rate volatility and reduce long-term costs. • Pension/OPEB Obligation Fund
The Pension/OPEB Obligation Fund is a funding source to be used to help offset the rising cost of pensions and OPEB in the General Fund. A total of approximately $13.0 million, including the $8.0 million in the Section 115 Trust, has been set aside in the fund to help mitigate budgetary challenges in the General Fund. In prior years, the City budgeted amounts to be transferred to the General Fund however, budgetary expenditure savings eliminated the need for these transfers.
• Enhanced Solid Waste Collection Services
As discussed above, collection service for organic materials will be increased from bi-weekly to weekly to comply with State regulation. In addition to requiring four new positions, this

23 2026/27 – 2027/28 Operating Budget
enhanced collection service will require a one-time capital expenditure of approximately $4.5 million in FY 2026/27 for five new single-body garbage collections trucks. Funding for the new equipment will be provided from existing Solid Waste Enterprise Fund cash reserves. In addition, annual ongoing operational costs for enhanced service levels are expected to be approximately $1.1 million. The ongoing operational costs are included in the budget beginning in mid-FY 2026/27.
• New Costco Location
A new Costco location opened in the City in March 2025. The FY 2026/27 and FY 2027/28 General Fund budgets reflect the higher sales tax base from this new business. • Sand Creek Sports Complex (SCSC)
Sand Creek Sports Complex Site I consists of the design and construction of the 14.5 acres of City owned property on the northwest corner of Sand Creek Road and Fairview Avenue. Site I will include 3 full-size fields lined for soccer and lacrosse, a parking lot, restrooms and other possible park amenities like a picnic area, two multi-use courts, exercise equipment, playground, etc. Site II is made up of the Contra Costa County Flood Control District detention basin, which consists of 19.24 acres, and will potentially add 2 soccer fields. The Site I portion of this project is expected to be completed in Winter 2026 with programming beginning shortly thereafter. The General Fund budget for FY 2026/27 includes program fee revenue generated from the new SCSC for approximately half of the fiscal year. The FY 2027/28 General Fund budget assumes a full year of operations.
• Enterprise Rate Studies
Charges for the Water, Wastewater and Solid Waste Enterprise services are set in accordance with Proposition 218 and are required to be sufficient to cover the necessary operating expenses, debt service and capital improvements costs of the Enterprises. Five-year rate studies are conducted which include future enterprise operating expenditures and capital budgets. City Council's approval of the enterprise rates for the five-year period ending in FY 2027/28 provides the basis for the Enterprise budgets. In April 2026, the City Council gave direction to staff to implement reduced water rate increases for FY 2026/27, from the 6.5% in the adopted rate study to a 4.0% increase for both monthly base rates and potable consumption charges. This rate adjustment has been incorporated into the Water Enterprise revenue budget. • Innovation Center @ Brentwood Infrastructure
This project will construct infrastructure improvements within the Innovation Center @ Brentwood, a 373-acre project site located in the northwest corner of Brentwood and a projected focal point for jobs and mixed-use development. Improvements include extension of utility infrastructure to spur business development in the area. This portion of the project is expected to be constructed in FY 2026/27 with the remainder of the project, consisting of a roadway extension, to be completed when development adjacent to the project occurs. The funding and cost for this project is included in the Capital Project Funds sections of the budget. • Wastewater Treatment Plant Expansion – Phase II
A capital project for the expansion of the Wastewater Treatment Plant (WWTP) with a total cost of $123.6 million is included in the budget. This project will ensure capacity for wastewater service for the City’s final buildout population. The project is also required to keep the system

24 2026/27 – 2027/28 Operating Budget
in compliance with increasingly stringent water discharge requirements. The City has secured a low-interest rate State Water Resources Control Board Revolving Fund (SRF) loan with a 30- year term to fund the majority of the capacity expansion portion of the project. In addition, this project includes a biosolids dryer and pyrolosis system. Financing for this portion of the project will either be provided by a bond issuance, to be repaid with future wastewater operations revenues, or by cash and internal borrowing. The cost of this project is included in the Capital Project Funds sections of the budget. Loan and potential bond repayments will be funded from a combination of wastewater development impact fees and wastewater operations revenue. • Roadway Projects
There are two significant roadway improvement capital projects included in the budget. First, the Lone Tree Way Roadway Improvements project will construct infrastructure improvements along a portion of Lone Tree Way from O’Hara Avenue to Tilton Lane and include a new traffic signal at Smith Road and Lone Tree Way. This project will address transportation infrastructure needs and anticipated traffic increases from construction of the new K-8 school on Smith Road.

Second, the Lone Tree Way – Union Pacific At-Grade Crossing project will widen Lone Tree Way between Fairview Avenue and Gann Street to four vehicle lanes. Union Pacific Railroad has approved this at-grade widening under the condition that improvements to four other roadway crossings in Brentwood are also included in the project. This project will provide critical infrastructure needed to improve traffic flow in this area. The funding and costs of these projects are included in the Capital Project Funds sections of the budget. • Vineyards at Marsh Creek – Theater/Event Center/Amphitheater Phase I Phase I of this project, with a total cost of $10.2 million, will consist of a parking lot and multiuse theater and/or event center at the Vineyards at Marsh Creek development. Phase II of the project is currently unfunded and would expand to a 750-seat amphitheater and box office with amenities. The funding and cost of Phase I of this project is included in the Capital Project Funds sections of the budget.
• Legislative Issues
In 2016, the State Legislature Passed Senate Bill (SB) 1383 which requires the separation of food waste and organics from garbage collection. The regulations associated with SB 1383 began on January 1, 2022, with compliance requirements being phased in. The new mandate also requires the City to move food waste from the garbage cart to the yard waste cart, update the cart lid labeling, and ensure all three cart colors match the state’s required color scheme. The Solid Waste Carts Upgrade project, included in the City’s Capital Project Funds section of the budget, will ensure compliance with these regulations. The costs associated with funding this project have been incorporated into the budget.

In September 2020, the State of California, by Executive Order N-79-20, set a goal for all operations where feasible that 100 percent of in-state sales of new passenger cars and trucks be zero-emission by 2035; as well as medium and heavy-duty trucks by 2045. In April 2023, the California Air Resources Board approved the Advanced Clean Fleets regulation, which is incorporated into the California Government Code. The regulation requires 50% of fleet vehicles purchased with a gross vehicular weight rating of >8,500 pounds beginning in 2024 to be zero emission vehicles (ZEV), with 100% of purchases being ZEV beginning in 2027. The City’s Fleet Electrification project has been incorporated into the City’s Capital Project Funds

25 2026/27 – 2027/28 Operating Budget
section of the budget to begin the necessary infrastructure improvements to comply with this regulation.

In August 2022, the United States Congress passed the Inflation Reduction Act (IRA) which represents significant legislation to invest in clean energy and climate change, a majority of which will be delivered through tax incentives. The IRA extends the Investment Tax Credit (ITC) in which qualified projects can receive a tax credit of 30%. For non-taxable entities, the ITC provides for a direct pay option which allows the credit to be refundable. The City’s Fleet Electrification project qualifies and it is expected the City will receive ITC funding to help offset a portion of the project costs.

In 2025, California Assembly Bill (AB) 1383 was introduced, aiming to enhance retirement benefits for public safety employees by relaxing PEPRA restrictions, allowing for increased pension formulas and bargaining over contribution sharing. The bill would be effective for employees first hired on or after January 1, 2027 or, for current PEPRA members, for service performed on or after that date. As of April 2026, AB 1383 passed the Assembly and is currently in the Senate. If the bill passes, the City could experience a significant increase in future pension liabilities and annual pension costs.

Long-Range Planning
The General Fund Fiscal Model (“Fiscal Model”) provides a comprehensive analysis and ten-year projection of General Fund revenues, expenses and fund balance. The Fiscal Model provides a key tool for the City Council to evaluate the financial feasibility of any priorities or goals they may wish to consider. The Fiscal Model also alerts management and the City Council to potential fiscal challenges in advance, allowing sufficient time to develop practical solutions with minimal impacts to residents.

Balancing community needs and the City Council’s vision with the City's financial capacity to fund and sustain programs requires careful consideration.

The Fiscal Model is updated regularly to reflect current economic conditions. Over the past two fiscal years, revenues increased due to rising property values and sales taxes generated by a new major retailer. However, recent economic conditions - including persistent inflation and reduced consumer demand - have moderated growth in these primary General Fund revenue sources. As a result, the forecast incorporates more conservative revenue assumptions. In addition, operating costs reflect continued moderate inflation and the impacts of current labor agreements and placeholders for future personnel cost increases.

The purpose of a long-term forecast is not to predict specific outcomes, but to illustrate trends and assess the sustainability of current spending levels. This approach allows the City to avoid reactions to short-term economic fluctuations, while maintaining the flexibility to respond to longer-term structural changes that could be required should economic conditions remain challenging over a long timeframe.

Together, the Fiscal Model, the General Fund 30% reserve and the City’s Pension/OPEB Obligation Fund provide a coordinated framework to ensure fiscal stability across economic cycles.

Key assumptions in the current Fiscal Model:
• Continued modest single-family housing development with increasing multi-family housing development over the next five years.

26 2026/27 – 2027/28 Operating Budget
• Pension and retiree medical costs rising in the near term, followed by a plateau; decreases are not anticipated within the ten-year horizon. Projections are based on current actuarial estimates and would be significantly higher without the City’s ongoing prefunding efforts. • Placeholder cost-of-living adjustments for personnel salaries of 3% per year beginning in FY 2027/28; the City’s contracts with all labor bargaining groups expire on June 30, 2027. • Health care costs are projected to remain elevated and exceed general inflation over the longterm. • Inflation is projected to hold at an annual rate of 2.5% to 3.0%. • Projected average investment income returns of 3.5% in the near term, falling to 2.5% in the latter half of the forecast period.
• Inclusion of costs related to State fleet electrification regulation and upcoming General Plan updates to comply with housing legislation.
• Future estimated operational costs for the Vineyards at Marsh Creek – Theater/Event Center/Amphitheater Phase I to be constructed in future fiscal years along with replacement costs for the Sand Creek Sports Complex, set to begin programming in Spring of 2027. • Increasing costs relating to the subsidization of underfunded Lighting and Landscape Assessment Districts.

The Fiscal Model also incorporates broader economic factors at the State, national and global levels.

The State has historically addressed budget shortfalls with solutions that may impact local governments.

Any changes to the State’s fiscal outlook, or proposed solutions to potential budget shortfalls, will be incorporated into future updates to assess potential impacts to the City and allow time to develop mitigation strategies. Conversely, the model will also incorporate the benefits of favorable legislation, such as new funding opportunities.

In addition to the Fiscal Model, the City maintains ten-year Enterprise fiscal models for its Water, Wastewater and Solid Waste Enterprise Funds. These models project revenues, expenditures, and cash balances and support rate setting in compliance with Proposition 218. Rates set for these utilities are required to be sufficient to cover the cost of necessary operating expenses, debt service and capital improvements costs. Rate studies include future enterprise operating expenditures and capital budgets and are used to project revenues and expenditures during the ten-year period. These models assess the impacts of higher or lower population growth trends, impacts of State required water conservation and other factors. Personnel cost projections are aligned with the Fiscal Model for consistency.

Long-Term Concerns and Issues
The City continually evaluates long-term challenges and develops strategies to sustain the high quality of life expected by residents. Key issues include:
• Unfunded Obligations
Despite significant progress in reducing unfunded pension and retiree medical liabilities, future contributions remain sensitive to investment performance by CalPERS. As the City participates in defined benefit plans, any shortfall in investment returns must be addressed through increases in employer contributions. As such, the City cannot truly control or fully plan for future benefit costs.

To mitigate this risk, the City has implemented several strategies, including discretionary prefunding contributions and a City Council policy which allocates 50% of any General Fund annual surplus toward paying down these obligations. In FY 2025/26, the City Council

27 2026/27 – 2027/28 Operating Budget
authorized the establishment of an IRS Section 115 Trust “Pension Trust” with an $8 million contribution from the Pension/OPEB Obligation Fund.

Assets transferred to the Pension Trust are restricted to prefunding pension obligations with CalPERS or to reimburse the City for pension expenses incurred during a current or prior fiscal year. Assets in the Pension Trust are expected to generate greater investment returns over the longer term than would be expected by holding short-term fixed income investments.

In addition, the City’s policy is to fund 85% of the annual actuarial determined contribution for retiree medical benefits, with full payoff expected in approximately 14 years. The combination of these actions serve to strengthen long-term fiscal resilience. • Jobs/Housing Ratio
Job growth in the City has historically lagged behind population growth. To address this imbalance, the City completed a specific plan for development at the Innovation Center @ Brentwood, a 373-acre project site located in the northwest corner of Brentwood. This area is a projected focal point for jobs and mixed-use development and the specific plan for the area includes economic development strategies, goals and policies that focus on economic growth in a wide range of businesses supporting job growth. This specific plan supports the General Plan goal to achieve a jobs-to-housing ratio of 1.5.
• State Laws
State legislation related to housing and land use continues to expand, often increasing State oversight over housing and land use issues and reducing local control. The City will continue to evaluate strategies to manage the operational and policy impacts of new requirements. • Regional Transportation Improvements
Continued growth places pressure on local and regional transportation infrastructure and existing roadways require increased funding to maintain. Long-term regional improvements include the State Route 239 project, currently in the environmental scoping phase. While a future Bay Area Rapid Transit (BART) eBART extension into Brentwood has been discussed, BART’s current financial condition and ridership challenges suggest that such a major transit expansion may occur over an extended timeframe. The City will continue to collaborate with regional transportation agencies to address these needs. • Water Supply
Population growth, drought conditions, regulatory requirements and Delta water quality challenges require ongoing planning for water supply expansion and reliability for the City’s build out population. The City will continue to evaluate programs and infrastructure investments to ensure long-term water availability and quality. • Securing Alternative Infrastructure Funding
The dissolution of redevelopment eliminated approximately $156.0 million in anticipated funding for infrastructure projects in the former redevelopment area. These projects include key improvements along the Brentwood Boulevard corridor. While funding has been identified for smaller projects, a comprehensive funding strategy for major infrastructure needs remains a priority.

28 2026/27 – 2027/28 Operating Budget

STRATEGIC PLAN
Overview
Brentwood’s high quality of life is supported by strong fiscal management and sustained investment in infrastructure. Maintaining this standard is a high priority for the City Council and requires thoughtful planning and strategic allocation of resources. In addition to the two-year Operating Budget, five-year Capital Improvement Program (CIP), Fiscal Model and various master plans, the Strategic Plan provides a framework for identifying and advancing City Council priorities. The Strategic Plan is organized into six focus areas. Each focus area includes a mission statement that guides departmental priorities and resource allocation.

29 2026/27 – 2027/28 Operating Budget
Strategic Plan Process
The City’s strategic planning typically begins in the year preceding adoption of a new two-year Operating Budget. Historically, the City Council conducts a public workshop to review and provide direction on a draft Strategic Plan, including consideration of the City’s financial capacity to support proposed initiatives.

Following the workshop, departments develop detailed work plans and cost estimates for each initiative. A Strategic Plan is then presented to the City Council for adoption, with associated funding is incorporated into the Operating Budget.

The most recent Strategic Plan was adopted in February 2022 for the 2022/23 – 2023/24 Operating Budget. A new Strategic Plan has not yet been formally adopted for the 2026/27 - 2027/28 Operating Budget; however, the current City Manager, who started with the City in November of 2025, has identified over 100 high-priority departmental projects and initiatives organized by Strategic Plan focus area (see Appendix).

These initiatives will inform the
development of a new Strategic
Plan to be presented at a future
City Council workshop. At this
workshop, staff will incorporate
City Council direction into a final
Strategic Plan that will be
adopted at a future City Council
meeting. Any new budgetary
impacts from the final version of
the Strategic Plan will be
incorporated into the Operating
Budget through the City’s
Operating Budget review process
that occurs every six months.

30 2026/27 – 2027/28 Operating Budget

BUDGET PROCESS
The City’s budget development process is guided by three key pillars:
• Maintaining a General Fund reserve of 30% of operating expenditures. • Addressing long-term pension and retiree medical obligations through disciplined prefunding.
• Ensuring adequate funding for infrastructure replacement and new capital needs.

The City’s fiscal management policies, along with the Strategic Plan, Fiscal Model, Enterprise fiscal models and CIP form the basis for development of the two-year Operating Budget. This integrated approach has served the City well by supporting balanced budgets and capital improvements that have provided well-planned infrastructure throughout the City’s history. In addition, this approach allows for long-term planning, quick analysis of impacts of proposed budget changes and memorializes year-toyear fiscal decisions on City Council priorities.

To promote transparency and accessibility, the City also prepares a Budget-in-Brief, which provides a condensed version of key information from both the Operating Budget and the CIP. The Budget-in-Brief offers readers an overview of the City’s fiscal position for the current year and is an important part of the City’s public information and outreach. Additionally, the City publishes quarterly and annual financial reports in a graphical, user-friendly format. All budget documents and financial reports are available on the City’s website (www.brentwoodca.gov).

Budget Policies and Guidelines
The City has adopted a comprehensive set of financial policies to guide the development, administration, and management of the Operating Budget. These policies can be found on the City website. Key policies include:
• Budget and Fiscal Policies (Council/Administrative Policy 10-5) This policy establishes guidelines for budget development, financial reporting and budget administration and management. It also defines standards for user fee cost recovery, fund balance and reserve levels, internal service funds, OPEB funding, appropriations limits, capital improvement and human resource management.
• Capital Financing and Debt Management Policy (Council/Administrative Policy 10-23) This policy provides direction on the appropriate use of debt financing and establishes best practices for prudent debt management.
• Investment Policy (Council/Administrative Policy 10-4) This policy provides procedures to ensure a prudent and systematic approach to investing City funds. Investments are made in accordance with applicable California Government Code requirements and sound financial management principles, prioritizing safety and liquidity above yield. Bond proceeds are invested in accordance with the applicable bond documents.

31 2026/27 – 2027/28 Operating Budget
The following principles guided preparation of this Operating Budget:
• The City will strive to maintain a structurally balanced budget, with ongoing revenues - including transfers from the Pension/OPEB Obligation Fund, used for budget stabilization – sufficient to cover ongoing expenditures over the two-year budget period. • Revenues are conservatively estimated.
• The General Fund maintains a 30% unassigned fund balance. • All costs associated with capital projects are identified to ensure full consideration of long-term financial impacts.
• Enterprise and Internal Service Funds reflect the full cost of operations, including the cost of both direct and indirect support from General Fund.
• Activities supported by user fees are intended to achieve full cost recovery, unless otherwise directed by the City Council (e.g. certain Parks and Recreation programs). • All budget decisions are incorporated into the City’s fiscal models to support responsible, longrange financial planning.

The two-year Operating Budget is adopted no later than June 30 for the upcoming fiscal year. Following adoption, the City Council formally reviews the City’s fiscal condition every six months and amends appropriations as needed. The City Council may amend or supplement the budget at any time by majority vote.

The City Manager and the Director of Finance and Information Systems are authorized to make administrative adjustments to appropriations, provided there is no incompatibility with funding sources and no increase to overall appropriations beyond what is permitted under established policies. All budget transfers require approval of the Director of Finance and Information Systems and transfers affecting personnel budgets must also be approved by the City Manager.

Budget Development
The Finance and Information Systems Department is responsible for both the preparation and ongoing monitoring of the City’s Operating Budget. The budget process begins within the department approximately nine months prior to the start of the fiscal year, with the development of a detailed project schedule to ensure timely budget adoption by the June deadline.

Budget development is closely aligned with the Strategic Plan process (see page 29). While a new Strategic Plan has not yet been incorporated into this budget cycle, any associated financial impacts from the anticipated new Strategic Plan will be included through the City’s regular six-month budget review process.

The citywide budget process begins in December, when the Finance and Information Systems Department launches the budget cycle and provides departments with key information, deadlines, and updated instructions. Departments receive detailed budget preparation materials, including forms and guidance specific to the current cycle, to ensure consistency with adopted policies and procedures.

From December through March, departments develop and refine their proposed budgets. Departments are responsible for preparing budgets for supplies and services as well as submitting personnel requests and reallocations necessary to support service delivery and strategic initiatives. The Finance and Information Systems Department prepares the budgets for revenue, internal service, debt service, transfers and personnel-related costs.

32 2026/27 – 2027/28 Operating Budget
Preliminary budget reports are then prepared for review by the Director of Finance and Information Systems, the City Manager, and department directors. Following internal review and refinement, the draft budget is presented to the City Council Budget and Debt Management Ad Hoc Committee (“Ad Hoc Committee”). The Ad Hoc Committee receives both detailed and summary-level information, including proposed staffing changes, new programs, and associated costs prior to the presentation of the budget to the full City Council.

The proposed Operating Budget is
subsequently presented at a public
Operating Budget and Fiscal Model
Workshop, typically held in May. This
workshop provides the City Council with an
opportunity to review the proposed budget,
evaluate long-term fiscal impacts of the
proposed budget through the Fiscal Model,
and provide policy direction. It also serves as
an important opportunity for community
engagement, with public participation
encouraged through in-person and remote
comment options. Notification of the
workshop date and time, along with a link to
a draft of the proposed budget, is provided
to the public well in advance on the City’s
website and on social media.

Following the workshop, staff incorporates
City Council direction into the final proposed
Operating Budget document. The Operating
Budget is then presented to City Council for
formal adoption in June. The legal level of
budgetary control is established at the fund
level and is maintained in accordance with
generally accepted accounting principles.

Once adopted, the budget may be amended
or supplemented at any time by majority vote
of the City Council.

33 2026/27 – 2027/28 Operating Budget

FUND STRUCTURE
Below is a graphic illustrating the City’s fund structure. See the Guide to Funds – Description of Funds, beginning on page 226, for a complete description of individual funds. (1) The General Fund and Water Enterprise Fund are major budgetary funds in both FY 2026/27 and FY 2027/28. In FY 2026/27, the Solid Waste Enterprise Fund and Wastewater Improvements Fund are also major budgetary funds. (2) Due to immateriality, the City's single Permanent Fund, Riparian Mitigation Site Maintenance, is included with Special Revenue Funds for budget presentation.

Fund Accounting
The City uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain City functions or activities. A fund is an accounting entity with a selfbalancing set of accounts established to record the financial position and results of operations of a specific activity. The City maintains the following fund types which are all subject to appropriation.

Governmental Fund Types
• General Fund is the primary operating fund of the City and accounts for all financial resources, except those required to be accounted for in another fund. • Special Revenue Funds account for specific revenues that are restricted by law or administrative action to expenditures for specified purposes. • Permanent Funds account for and report resources that are restricted to the extent that only earnings, and not principal, may be used for purposes that support City programs for the benefit of the City and its citizens.
• Debt Service Funds account for the accumulation of resources for and payment of, interest, principal and related costs on long-term debt.
• Capital Project Funds account for financial resources segregated for the acquisition and construction of major capital facilities or infrastructure.

34 2026/27 – 2027/28 Operating Budget
Proprietary Fund Types
• Enterprise Funds account for operations in a manner similar to private business enterprises where the intent is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis is to be financed or recovered primarily through user charges.
• Internal Service Funds account for the financing of goods or services provided by one department or agency to other departments or agencies of the City or to other governmental units on a cost-reimbursement basis.

Fiduciary Fund Types
The financial activities of these fund types are generally excluded from the City’s Operating Budget, as they are not resources or obligations of the City. However, budgets are presented for Special Assessment District Bonds for informational purposes in a separate Fiduciary Fund section of the document.
• Custodial Funds account for assets held by the City as trustee or agent for individuals, private organizations, other governmental units and/or other funds. These funds are custodial in nature (assets correspond with liabilities) and do not involve measurement of results of operations.

Two of the City’s custodial funds that are used as pass-through funds and an Other Employee Benefit Trust Fund – Corebridge Financial, which includes assets and activities of the City’s single-employer deferred compensation plan held by a third-party administrator are included in the City’s Annual Comprehensive Financial Report (ACFR), but not appropriated in this Operating Budget.
• Private-Purpose Trust Funds account for the activities and financial position of the Successor Agency to the former Brentwood Redevelopment Agency (RDA). These funds are held in a trust arrangement for the benefit of local taxing entities, including the City of Brentwood. The budget for the Successor Agency to the RDA is included in the Operating Budget and adopted by a Successor Agency resolution.

Major Budgetary Fund
A fund whose revenues or expenditures, excluding other financing sources and uses, constitute more than 10% of the revenues or expenditures of the appropriated budget are considered major budgetary funds. The General Fund and Water Enterprise Fund meet the criteria for classification as a major budgetary fund each fiscal year. In this budget cycle, two additional funds that meet this criteria in FY 2026/27 only are the Solid Waste Enterprise Fund and the Wastewater Improvements Capital Project Fund.

Basis of Accounting
The financial statements for the City of Brentwood are prepared in conformity with Generally Accepted Accounting Principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.

Governmental fund and fiduciary fund types use the modified accrual basis of accounting which recognizes expenditures when the related fund liability is incurred. Revenues are recognized when they

35 2026/27 – 2027/28 Operating Budget
become both measurable and available. “Measurable” means the amount of the transaction can be determined and “Available” means collectible within the current period, or soon enough thereafter, to be used to pay liabilities of the current period. The accrual basis of accounting is utilized by proprietary fund types. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.

Basis of Budgeting
The budget for governmental and fiduciary fund types has been prepared using a modified accrual basis. The accrual basis of accounting has been used to prepare the budgets for the propriety funds.

The budget is prepared on the basis of GAAP and is in conformity with the City’s audited ACFR.

During development of the budget, cost allocations are utilized. Personnel costs are allocated to one or more department or division depending on the assigned scope of work. Supplies, services and capital outlay costs are budgeted on a line-item basis with shared costs allocated across the benefitting departments or divisions. In addition, internal service funds, such as those that provide vehicle maintenance, recover costs of operation from departments based on the proportionate share of service received. For internal service funds that provide replacement funding for assets, funding is recovered in a proportionate share from the departments based on replacement value and useful lives of the assets within the department.

Investments
The investment policies and practices of the City of Brentwood are based on State law and prudent money management. All funds are invested in accordance with the City’s Investment Policy and California Government
Code Sections 53601 and
53646. The investment
of bond proceeds is
further restricted by the
provisions of relevant
bond documents. The
City's primary objectives
for investments, in order,
are safety, liquidity and
return on investment.

The City apportions
interest earnings to all
funds based on their
average quarterly cash
balance in accordance
with GASB Statement
No. 31. Information
regarding the City’s
Investment Policy can be
found on page 30.

36 2026/27 – 2027/28 Operating Budget

LONG-TERM DEBT
Debt Policy and Limits
The debt management policies contain guidelines that outline the restrictions that affect the amount and type of debt issued by the City, the issuance process and debt portfolio management. Debt management policies improve the quality of decisions, provide justification for the structure of debt issuance, identify policy goals and demonstrate a commitment to long-term financial planning, including a multi-year capital plan. Adherence to debt management policies signal to rating agencies, and the capital markets, a government is well managed and should meet its obligations in a timely manner. Information regarding the City’s Capital Financing and Debt Management Policy can be found on page 30.

Pursuant to State of California Government Code Section 43605, the City’s legal bonded indebtedness shall not exceed 3.75% of the assessed value of all real and personal property in the City. In accordance with this, only the City’s 2002 General Obligation bonds are subject to the legal limit. The 2002 General Obligation bonds were used to finance a portion of a new police facility and the debt is serviced from tax assessments. As of June 30, 2025, the net total debt subject to the legal limit was $3,981,139 with a debt limit of $537,711,552, leaving a legal debt margin of $533,730,413.

There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all significant limitations and restrictions. The City’s general purpose debt level is minimal and does not have a significant impact on the ability of the government to provide general services. The City’s Enterprise Fund rates are set at levels needed to fully cover debt service requirements as well as operations, maintenance, administration and capital improvement costs.

City Debt Obligations
• General Obligation Bonds Series 2002
On February 28, 2002, the City issued
$5,999,976 in General Obligation Bonds
Series 2002 to finance the construction,
acquisition and improvement of a new
police station. The interest rates on these
bonds range from 3.625% to 5.68%. The
General Obligation Bonds Series 2002
shall accrete in value by the accumulation
of earned interest from its initial
denominational (principal) amount with
such interest compounded semiannually
on January 1 and July 1.

Year Ending
June 30 Principal Total
2026 $ 725,000 $ 725,000
2027 760,000 760,000
2028 800,000 800,000
2029 840,000 840,000
2030 880,000 880,000
2031 925,000 925,000
Subtotal 4,930,000 $ 4,930,000
Future Accretion (890,481)
Total $ 4,039,519
General Obligation Bonds Series 2002

37 2026/27 – 2027/28 Operating Budget
• 2015 Lease Financing
On December 17, 2015 the
Authority issued $11,515,000
in a direct placement with
Capital One Public Funding,
LLC to finance the acquisition
and construction of a new
Library and a Municipal
Service Center, along with
other public capital
improvements. The City’s
Police Department building is
pledged as collateral for this debt issuance. Debt service payments will be made over 20 years at an interest rate of 3.25%. Debt service will primarily be funded by utilizing prior bond refinancing savings with the balance funded by various sources, including Solid Waste, Water and Wastewater Enterprises and Community Facilities Development Impact Fees. • 2019 Civic Center Project Lease Revenue Refunding Bonds On April 2, 2019, the Authority issued $32,210,000 in Civic Center Project Lease Revenue Refunding Bonds, Series 2019, to refinance the 2009 Civic Center Project Lease Revenue Bonds.

The City’s Civic Center is pledged as collateral for this debt issuance. Annual debt service payments, including interest at 4.00% to 5.00%, range from $852,800 to $2,715,650. The refunding resulted in overall debt service savings of $17,856,031. The net present value of the debt service savings is called an economic gain and amounted to $8,988,082. If an event of default occurs, as defined in the indenture of trust, the bond trustee, or not less than a majority of owners of the bonds outstanding at that time, are entitled to declare the principal and accrued interest for all bonds outstanding to be due and payable immediately.

The 2009 Civic Center Project
Lease Revenue Bonds were
issued to finance the
construction of a new city hall,
community center and senior
center, plus library
improvements and other public
capital improvements.

The Civic Center Project Lease
Revenue Refunding Bonds,
Series 2019, are secured by a lien
on, and pledge of, revenues under a Trust Agreement. “Revenues” means all amounts received by the Trustee, U.S. Bank, as payment on principal and interest. The City’s revenue sources, as described in the Official Statement, are pledged payments from the Brentwood Redevelopment Agency (now Successor Agency) pursuant to the reimbursement agreement, pledged payments from the Community Facilities Districts (CFD) local obligations and pledged payments from the Capital Improvement Financing Program (CIFP) revenues.

Year Ending
June 30 Principal Interest Total
2026 $ 560,000 $ 227,338 $ 787,338
2027 580,000 208,813 788,813
2028 600,000 189,638 789,638
2029 615,000 169,894 784,894
2030 635,000 149,581 784,581
2031-2035 3,515,000 418,031 3,933,031
2036 770,000 12,512 782,512
Total $ 7,275,000 $ 1,375,807 $ 8,650,807
2015 Lease Financing
Year Ending
June 30 Principal Interest Total
2026 $ 1,550,000 $ 1,116,650 $ 2,666,650
2027 1,630,000 1,037,150 2,667,150
2028 1,715,000 953,525 2,668,525
2029 1,805,000 865,525 2,670,525
2030 1,890,000 773,150 2,663,150
2031-2035 8,315,000 2,567,125 10,882,125
2036-2040 7,370,000 692,875 8,062,875
Total $ 24,275,000 $ 8,006,000 $ 32,281,000
2019 Civic Center Project Lease Revenue Refunding Bonds

38 2026/27 – 2027/28 Operating Budget
As mentioned previously, the Successor Agency to the Brentwood Redevelopment Agency has pledged future tax revenues for the repayment of a portion of the bonds. Following the dissolution of the Brentwood Redevelopment Agency, the Successor Agency is allocated funds for payment of obligations listed on the Successor Agency’s Recognized Obligation Payment Schedule (ROPS) and approved by the California State Department of Finance (“DOF”). • Capital Improvement Revenue Refunding Bonds Series 2021 A & B On November 2, 2021, the Authority issued $14,450,491 in Capital Improvement Revenue Refunding Bonds Series 2021A (tax exempt) and 2021B (taxable) in a direct purchase with City National Bank to finance the refunding of the 2012 Capital Improvement Revenue Refunding Bonds. The Brentwood Family Aquatic Complex is pledged as collateral for the 2021 bonds and the interest rates on these bonds range from 0.63% to 1.35%. The refunding resulted in overall debt service savings of $2,943,607.

The refunded 2012 bonds were issued to: 1) finance the refund of the 2001 CIP Bonds under a facilities lease and 2) refund a series of tax allocation bonds issued by the Brentwood Redevelopment Agency.

The Successor Agency to the Brentwood Redevelopment Agency has pledged future tax revenues for the repayment of a portion of the bonds. Following the dissolution of the Brentwood Redevelopment Agency, the Successor Agency is allocated funds for payment of obligations listed on the
Successor Agency’s ROPS
and approved by the DOF.

The remaining portion of
the bonds is repayable from
any source of the City’s
available funds and will
primarily be funded from
the Roadway Development
Impact Fee Fund and prior
bond refinance savings.
• Successor Agency Payment Plan
In an effort to balance its budget, the State of California adopted ABx1 26 on June 28, 2011, amended by Assembly Bill 1484 (AB 1484) on June 27, 2012. This legislation suspended all new redevelopment activities and dissolved redevelopment agencies as of February 1, 2012. The City of Brentwood elected to become the Successor Agency to the former Brentwood Redevelopment Agency on January 10, 2012.

Section 34179.5 of AB 1484 required all successor agencies to hire a licensed accountant, approved by the county Auditor-Controller, to conduct two Due Diligence Reviews (DDRs) to determine the balances available to be redistributed to other taxing entities. The two DDRs were focused on 1) the Low and Moderate Income Housing Fund, and 2) Other Funds and Accounts.

Year Ending
June 30 Principal Interest Total
2026 $ 1,581,671 $ 121,746 $ 1,703,417
2027 1,609,209 100,207 1,709,416
2028 1,288,904 80,645 1,369,549
2029 1,307,305 63,121 1,370,426
2030 1,323,203 45,365 1,368,568
2031-2032 2,698,744 36,538 2,735,282
Total $ 9,809,036 $ 447,622 $ 10,256,658
Capital Improvement Revenue Refunding Bonds Series 2021 A & B

39 2026/27 – 2027/28 Operating Budget
The Low and Moderate Income Housing Fund DDR determined that an unobligated balance of $4,072,553 was available for redistribution and the Successor Agency remitted this amount to the Contra Costa County Auditor Controller in February 2013. The Other Funds and Accounts DDR determined that the unobligated balance was $0, and the Successor Agency filed the DDR report with the DOF. The DOF, during their review of the DDR, determined that transfers made pursuant to pre-existing contracts and construction commitments were invalid and adjusted the DDR accordingly, issuing a DDR demand of $14,955,931.

In response to the $14,955,931 DDR demand, the City and Successor Agency filed suit against the DOF claiming, among other things, that 1) the DOF’s DDR determination violated Proposition 22, which added Article XIII, Sections 24(b) and 25(a)(7) to the California Constitution and prohibits the legislature from reallocating tax increment; 2) at the time the transfers were made by the former Redevelopment Agency the transfers were legally valid and made pursuant to enforceable obligations and third party contracts; 3) the transfers were for the payment of goods and services which were broadly exempted from reversal as defined in California Health and Safety Code Section 34179.5(b)(3); and 4) the DOF’s enforcement of its final determination was unconstitutional. The City and Successor Agency’s legal challenge was ultimately unsuccessful and legal remedies were exhausted when the California Supreme Court declined to hear the case on September 16, 2015.

On December 9, 2015, the City, as Successor Agency, entered into a ten-year interest free payment plan with the DOF to pay the DDR demand of $14,955,931. The annual payments range from $357,796 to $1,826,938. The final payment of $824,328 was issued in December 2025.

Enterprise Debt Obligations
• State Water Resources Loan (Recycled Water Projects)
In July 2017, the City entered into a
loan and grant agreement with the
State of California’s State Water
Resources Control Board for a not-toexceed amount of $20,802,000 to fund the City’s Water Recycling Projects,
which consisted of two City projects:
the Non-Potable Storage Facility, and
Citywide Non-Potable Water
Distribution System. Project financing
includes a State Revolving Fund loan
and grant funding in the amounts of
$14,596,500 and $6,205,500,
respectively. The loan bears annual
interest of 1.0%, which began accruing with each financing disbursement. During FY 2022/23 accrued construction period interest, in the amount of $235,434, was recorded as principal, resulting in total principal due to the State of $14,831,934. Upon violation of any material provision of the loan agreement, the State Water Resources Control Board has the option to demand immediate repayment of the current loan balance plus accrued interest and penalties.

Year Ending
June 30 Principal Interest Total
2026 $ 438,825 $ 135,250 $ 574,075
2027 443,213 130,862 574,075
2028 447,645 126,430 574,075
2029 452,122 121,953 574,075
2030 456,643 117,432 574,075
2031-2035 2,352,631 517,741 2,870,372
2036-2040 2,472,639 397,734 2,870,373
2041-2045 2,598,768 271,604 2,870,372
2046-2050 2,731,331 139,040 2,870,371
2051-2052 1,131,153 16,996 1,148,149
Total $ 13,524,970 $ 1,975,042 $ 15,500,012
State Water Resources Loan (Recycled Water Projects)

40 2026/27 – 2027/28 Operating Budget
• State Water Resources Loan (Wastewater Treatment Plant Expansion – Phase II Project) In December 2019, the City entered into a loan agreement with the State of California’s State Water Resources Control Board for a not-to-exceed amount of $65,102,000 to fund the City’s Wastewater Treatment Plant Expansion – Phase II Project. Project financing will consist of a State Revolving Fund loan of a not-to-exceed amount of $61,246,000 and a principal forgiveness component of $3,856,000. Certain terms of the agreement were amended in April 2021, January 2025 and November 2025, under which the City was to have construction completed by December 31, 2025. Construction on the project began in September 2020. The loan bears annual interest of 1.3%, which begins accruing with each financing disbursement. Beginning one year after completion of construction, repayment of the loan principal plus interest will be made annually according to the final payment schedule provided by the State. Upon violation of any material provision of the loan agreement, the State Water Resources Control Board has the option to demand immediate repayment of the current loan balance plus accrued interest and penalties.

As of June 30, 2025, the City has incurred $55,654,611 of eligible project costs and financing disbursement requests have been submitted to the State. Through June 30, 2025 accrued construction period interest, in the amount of $1,520,683, was recorded as principal, resulting in total principal due to the State of $57,175,294. Of this amount, $3,856,000 was allocated by the State as loan forgiveness in FY 2020/21, and the net amount of the note payable is $53,319,294.
• Water Revenue Refunding Bonds Series 2024
On October 2, 2024, the Authority issued $26,855,000 in Water Revenue Refunding Bonds Series 2024 (“2024 Water Bonds”) to 1) refund all of the Authority’s outstanding Water Revenue Refunding Bonds Series 2014 and 2) pay costs of issuance incurred in connection with the issuance, sale and delivery of the 2024 Water Bonds. The refunding reduced the total debt service payments over 14 years by $4,185,085 and resulted in an economic gain (difference between the present values of the debt service payments on the old and new debt) of $3,546,868. Total annual debt service payments, including interest at a rate of 5%, range from $2,546,250 to $3,221,115. If an event of default occurs, as defined in the indenture of trust, the bond trustee, or not less than a majority of owners of the bonds outstanding at that time, are entitled to declare the principal and accrued interest for all bonds outstanding to be due and payable immediately. Future payments for these bonds are shown below:

The Authority has pledged future,
water customer revenues, net of
specified operating expenses,
through 2038 to repay the 2024
Water Bonds. The bond coverage
requirement is 1) the Adjusted
Annual Net Water Revenues equal
to at least 125% of the annual
principal and interest payments
on the bonds and 2) the Net
Operating Revenues equal at least
100% of all parity obligations
Year Ending
June 30 Principal Interest Total
2026 $ 1,980,000 $ 1,229,250 $ 3,209,250
2027 1,420,000 1,130,250 2,550,250
2028 1,495,000 1,059,250 2,554,250
2029 1,570,000 984,500 2,554,500
2030 1,645,000 906,000 2,551,000
2031-2035 9,535,000 3,211,750 12,746,750
2036-2038 6,940,000 705,250 7,645,250
Total $ 24,585,000 $ 9,226,250 $ 33,811,250
Water Revenue Refunding Bonds Series 2024

41 2026/27 – 2027/28 Operating Budget
secured by Net Water Revenues. Adjusted Annual Net Water Revenues is defined as Water income and revenue less maintenance and operation costs adjusted by certain non-cash adjustments and any transfers to or from the Rate Stabilization Fund. Net Operating Revenues is defined as the Adjusted Annual Net Water Revenues less net impact fees and credits received.

In FY 2024/25, the Water Fund’s principal and interest paid was $3,221,115, Net Operating Revenues were $9,232,518 and Adjusted Annual Net Water Revenues were $11,149,909 meeting bond covenant debt-coverage requirements.

Below is a schedule of payments by fund for the fiscal years 2026/27 and 2027/28 for all long-term debt obligations discussed in this section.

Assessment Districts (Non-City Funded Obligations)
There are various assessment districts in the City that have issued Special Assessment District Bonds, pursuant to the Municipal Improvement Act of 1915, and are not reported in the City’s long-term debt.

These are special obligations payable from, and secured by, specific revenue sources described in the bond resolutions and official statements of the respective issues. The City acts merely as the collecting and paying agent for the debt issued by these districts and, as such, these bonds are not considered obligations of the City and are not reflected in the schedules in the previous pages.

Description Fund Principal Interest Total Principal Interest Total City Debt Obligations
General Obligation Bonds Series 2002 448 $ 760,000 $ 0 $ 760,000 $ 800,000 $ 0 $ 800,000 2019 Civic Center Project Lease Revenue Refunding Bonds 461 1,630,000 1,037,150 2,667,150 1,715,000 953,525 2,668,525 Capital Improvement Revenue Refunding Bonds Series 2021 A & B 445 1,609,209 100,207 1,709,416 1,288,904 80,645 1,369,549 2015 Lease Financing 466 580,000 208,813 788,813 600,000 189,638 789,638 Enterprise Debt Obligations
State Water Resources Loan (Recycled Water Projects) 255 221,606 65,431 287,037 223,822 63,215 287,037 State Water Resources Loan (Recycled Water Projects) 590 221,607 65,431 287,038 223,823 63,215 287,038 State Water Resources Loan (Wastewater Treatment Plant Expansion) 1 255 1,205,779 546,190 1,751,969 1,204,627 547,342 1,751,969 State Water Resources Loan (Wastewater Treatment Plant Expansion) 1 590 541,727 245,389 787,116 541,209 245,907 787,116 Water Revenue Refunding Bonds Series 2024 250 612,904 61,291 674,195 612,904 61,291 674,195 Water Revenue Refunding Bonds Series 2024 560 807,096 1,068,959 1,876,055 882,096 997,959 1,880,055 Totals $ 8,189,928 $ 3,398,861 $ 11,588,789 $ 8,092,385 $ 3,202,737 $ 11,295,122 (1) Schedule includes estimate of debt obligations budgeted. Amortization schedule will be finalized by the State Water Resources Control Board after project completion.

FY 2026/27 FY 2027/28
Long-Term Debt Schedule of Payments by Fund
Fiscal Years 2026/27 and 2027/28

42 2026/27 – 2027/28 Operating Budget

CAPITAL IMPROVEMENT PROGRAM OVERVIEW
The City of Brentwood prepares an annual Capital Budget document that is separate from the Operating Budget document, although the two are closely linked. The CIP, as distinguished from the Operating Budget, is used as a planning tool for the City to identify the capital improvement needs of the City and align those needs with the
appropriate timing and
financing in a way that
assures the most
responsible and efficient
use of resources. The
Capital Budget is part of
the Operating Budget,
which appropriates funds
for specific programs and
projects. The five-year CIP
is reviewed annually to
enable the City Council to
reassess projects in the
program.

A capital project typically involves the purchase or construction of major fixed assets such as land, infrastructure, buildings and any permanent improvement including additions, replacements and major alterations having a long life expectancy. Additionally, capital projects may apply to: 1) expenditures which take place over two or more years and require continuing appropriations beyond a single fiscal year, 2) systematic acquisitions over an extended period of time, or 3) scheduled replacement or maintenance of specific elements of physical assets. Generally, items costing $10,000 or more are considered as capital purchases, although not all capital purchases are included in the CIP. Some capital purchases are budgeted directly in the Operating Budget, such as routine vehicle and equipment replacement purchases. For informational purposes, capital projects may also be referred to as capital facilities, CIP projects and capital improvement projects.

For more information on the City’s CIP, please refer to the 2026/27 – 2030/31 Capital Improvement Program located on the City’s website (www.brentwoodca.gov). The information provided in this section is from the original adopted 2026/27 – 2030/31 CIP.

43 2026/27 – 2027/28 Operating Budget
Capital Improvement Program Summary
The 2026/27 – 2030/31 CIP includes 60 City capital improvement projects with a total projected cost of $329.7 million. The charts below show the capital expenditures, by category, included in the Operating Budget for FY 2026/27 and FY 2027/28.

44 2026/27 – 2027/28 Operating Budget
The FY 2026/27 and FY 2027/28 CIP funding sources are shown in the chart below. (1) Excludes Other funding for Wastewater Treatment Plant Expansion - Phase II project Significant CIP Projects
There are several notable, non-routine, capital expenditures included in the 2026/27 – 2030/31 CIP. The table below lists these projects including: 1) budgeted expenditures for FY 2026/27 and FY 2027/28 and 2) future annual operating and maintenance (O & M) impact, in current dollars. The O & M impact costs include additional ongoing personnel, janitorial, maintenance or utility costs, which are included in the Operating Budget once a project is completed. Project descriptions are listed after the chart. $-
$2
$4
$6
$8
$10
$12
$14
$16
$18 Millions
FY 2026/27 and 2027/28 Funding Sources
2026/27 2027/28
Project # Project Title 2026/27 2027/28
Future Annual
O & M Impact
31620 Brentwood Boulevard Widening North - Phase I $ 838,789 $ 0 $ 30,000 31706 Countywide Smart Signals 1,500,000 263,210 10,000 31695 Innovation Center @ Brentwood Infrastructure 1,984,204 0 50,000 31340 Lone Tree Way - Union Pacific At-Grade Crossing 266,500 8,000,000 15,000 31701 Lone Tree Way Roadway Improvements 3,611,961 0 12,000 52446 Sand Creek Sports Complex 9,846,900 0 128,125
56419 Brentwood Manor Water and Wastewater Rehabilitation 4,756,479 1,500,000 2,500 56415 Pump Station 2.4 Installation 350,000 4,000,000 50,000 Sludge Collector Equipment Replacement 279,000 1,702,000 0 59140 Wastewater Treatment Plant Expansion - Phase II 25,000,000 5,000,000 600,000 59207 Water and Wastewater Laboratory 4,709,070 0 10,000 37265 Fleet Electrification 1,498,460 1,147,961 5,000
Solid Waste Transfer Station Updates 400,000 1,700,000 25,000 37231 Vineyards at Marsh Creek – Theater/Event Center/Amphitheater Phase I 603,493 8,962,573 450,000 $ 55,644,856 $ 32,275,744 $ 1,387,625

45 2026/27 – 2027/28 Operating Budget
Project Descriptions
• Brentwood Boulevard Widening North - Phase I (CIP #336-31620) This project will continue the widening of Brentwood Boulevard (120' right-of-way) with two lanes in each direction (approximately 500') and will include two bike lanes, curb and gutter, medians, sidewalk on the east side, streetlights and landscaping on each side of the roadway.

This project will also include a new parallel bridge over Marsh Creek, utility upgrades, and undergrounding of existing overhead utilities. In order to widen the road and construct the improvements, the first phase of this project included demolishing an existing building located on the corner of Brentwood Boulevard and Sunset Road. This project will improve safety and traffic flow and facilitate development.
• Countywide Smart Signals (CIP #336-31706)
The Contra Costa Transportation Authority (CCTA) is leading a Smart Signals Project to upgrade traffic signals at over 300 intersections throughout the 19 cities, towns and unincorporated communities within Contra Costa County. This work is focused along major arterials that have been designated as “Routes of Regional Significance.” CCTA is a recipient of the Metropolitan Transportation Commission’s (MTC) One Bay Area Grant Cycle 3 (OBAG 3) funds for the design, construction, and deployment of the project. In the City of Brentwood, the project will upgrade traffic signals at 15 intersections along Brentwood Boulevard and Lone Tree Way.
• Innovation Center @ Brentwood Infrastructure (CIP #336-31695) This project, formerly named “Priority Area 1 Infrastructure Improvements”, will construct infrastructure improvements to support the development of the Innovation Center @ Brentwood Specific Plan Area. The improvements include the extension of wet utilities (water, sewer and non-potable water) from the existing terminus of Empire Avenue westerly under State Route 4 (SR 4) to Heidorn Ranch Road. Due to a lack of existing right-of-way, the roadway extension from Amber Lane to Empire Avenue is anticipated to be completed through conditions of approvals for the development of adjacent properties within the Innovation Center @ Brentwood.
• Lone Tree Way – Union Pacific At-Grade Crossing (CIP #336-31340) This project, formerly named “Lone Tree Way – Union Pacific Undercrossing”, will widen Lone Tree Way between Fairview Avenue and Gann Street to four vehicle travel lanes. Improvements will include bicycle lanes, sidewalk, landscaped median islands and green infrastructure. Union Pacific Railroad (UPRR) has approved an at-grade widening of Lone Tree Way under the condition that the project includes improvements to the four other roadway crossings in Brentwood at Sand Creek Road, Central Boulevard, Oak Street and Brentwood Boulevard. In addition to coordination with PG&E and other utility companies, permits from and agreements with UPRR and the California Public Utilities Commission (CPUC) will be required as well. • Lone Tree Way Roadway Improvements (CIP #336-31701)
This project will construct the following infrastructure and pedestrian safety improvements on Smith Road, O’Hara Lane and Lone Tree Way (from O’Hara Avenue to Tilton Lane): widening and construction of sidewalk, curb and gutter, conversion of overhead utility lines to underground, extension of the storm drain system including constructing a bioretention and installation of a new rectangular rapid flashing beacon and new traffic signal. Improvements may also include a traffic signal at the O’Hara Avenue/O’Hara Lane intersection. This project is mandatory to support a new K-8 school, which opened in September 2024.

46 2026/27 – 2027/28 Operating Budget
• Sand Creek Sports Complex (CIP #352-52446)
Sand Creek Sports Complex Site I consists
of the design and construction of the 14.5
acres of City owned property on the
northwest corner of Sand Creek Road and
Fairview Avenue. Site I will include 3 fullsize fields lined for soccer and lacrosse, a parking lot, restrooms and other possible
park amenities like a picnic area, two multiuse courts, exercise equipment, playground, etc. Site II is made up of the
Contra Costa County Flood Control District
detention basin, which consists of 19.24
acres, and will potentially add 2 soccer
fields. The Site I portion of this project is expected to be completed in Winter 2026 with programming beginning shortly thereafter. The General Fund budget for FY 2026/27 includes program fee revenue generated from the new SCSC for approximately half of the fiscal year.

The FY 2027/28 General Fund budget assumes a full year of operations. • Brentwood Manor Water and Wastewater Rehabilitation (CIP #562-56419) This project includes the replacement of 3,200 linear feet (lf) of water, sewer and storm drain facilities to correct existing operations and maintenance constraints due to the age of the facilities. This project will allow the City to accommodate the anticipated development around the surrounding area and bring the aging facilities up to current standards. • Pump Station 2.4 Installation (CIP #562-56415)
The 2017 Water Master Plan identified this project as necessary to serve the future development of the Innovation Center @ Brentwood, formerly Priority Area 1 Infrastructure Improvements and Stonebrook development. This project will install a pump station adjacent to Reservoir 1.3 located on St. Regis Avenue. The new pump station should provide approximately 4,500 gallons per minute (GPM), which is approximately 6.5 millions of gallons per day (MGD), when fully operational. The pump station design will include four (4) 1,500- GPM pumps, a building to house electrical and instrumentation equipment, piping, fittings, flow meter, paved access road and fencing.
• Sludge Collector Equipment Replacement
This project will provide improvements to the City of Brentwood Water Treatment Plant (BWTP) chain and flight sedimentation basins including replacement of cross collector mechanisms, sprockets and floor wear strips. The sedimentation basins were installed in 2007 and have exceeded their service life. Recent condition assessments, including one in March 2023, determined that all submerged components require replacement. • Wastewater Treatment Plant Expansion - Phase II (CIP #592-59140) The existing 5 MGD tertiary treatment facility was planned and constructed to accommodate future expansions. The Phase II Expansion is designed to treat 6.4 MGD, which will service the final buildout population per the current General Plan and accommodate planned and approved development of the City. The project includes the addition of one diffused aeration basin and one secondary clarifier, retrofit of existing oxidation ditches, modifications to the disinfection process, installation of a biosolids dryer and pyrolysis system and electrical

47 2026/27 – 2027/28 Operating Budget
distribution system upgrades. This project is necessary to keep the City in compliance with regulatory requirements.
• Water and Wastewater Laboratory (CIP #592-59207)
This project will provide a new, larger laboratory for the water and wastewater systems. The existing laboratory which was constructed in 2002, is outdated, already outgrown its footprint and the building is not readily expandable. Constructing a new, larger laboratory and converting the existing laboratory to office space will provide laboratory space adequate for build-out conditions, and has the added benefit of eliminating the need to build additional office space.
• Fleet Electrification (CIP #337-37265)
In September 2020, the State of California, by Executive Order N-79-20, set the goal that 100 percent of in-state sales of new passenger cars and trucks will be zero-emission by 2035, as well as medium and heavy-duty trucks by 2045 for all operations where feasible. In November 2021, the State established a goal for public fleets to transition to 100% zero-emission vehicles (ZEVs) by 2030, where feasible. This requires public fleets to be converted to electric vehicles, making it necessary to design and install charging stations at City facilities. The City has roughly 100 vehicles that are candidates to transition to electric vehicles and roughly 8 to 10 of these vehicles are replaced annually. Completion of the electrical infrastructure necessary to support this project at other City sites will be necessary in future years, and will allow for the charging of electric vehicles at the various locations they are used at. The key component of this project is the planning for the additional electrical power required to utilize the electric vehicle chargers.
• Solid Waste Transfer Station Updates
This project is necessary to keep the City’s transfer station floor in good working condition, expand the floor capacity in order to satisfy requirements of SB 1383 and to accommodate increased operating volumes as the City grows. SB 1383 requires the City to process food waste and organic materials separately, requiring additional floor space. Additional parking spaces will also be created to accommodate additional trucks that have been added to the garbage truck fleet, as operations have grown since the facility’s initial construction in 2014. • Vineyards at Marsh Creek – Theater/Event Center/Amphitheater Phase I (CIP #337- 37231)
The project, formerly named “Vineyards at Marsh Creek – Event Center/Amphitheatre Phase I”, is located within the Vineyards at Marsh Creek development. Consistent with a development agreement between the City and the developer of the Vineyards at Marsh Creek, the developer has submitted a total of $3.5 million, plus interest, to the City for the design and construction of the project. Due to cost escalations, Phase I has been revised to consist of a parking lot and multi-use theater and/or event center. Phase II would expand to a 750-seat amphitheater and box office with amenities. Phase II is currently unfunded. Preliminary design & studies on Phase I has commenced and construction is anticipated to begin in Summer 2027.

48 2026/27 – 2027/28 Operating Budget

FUND BALANCE SUMMARY
Fund Balance Fund Balance Fund Balance Fund Balance
& Reserves & Reserves & Reserves & Reserves
at 6/30/2025 Revenues Expenditures at 6/30/2026 Revenues Expenditures at 6/30/2027 Revenues Expenditures at 6/30/2028 General Fund $ 29,411,944 $ 78,718,835 $ 77,850,975 $ 30,279,804 $ 84,685,550 $ 84,876,933 $ 30,088,421 $ 87,965,690 $ 86,476,152 $ 31,577,959 Solid Waste Enterprise 31,846,047 21,246,608 20,840,481 32,252,174 22,453,951 26,695,939 28,010,186 23,407,246 24,631,688 26,785,744 Water Enterprise 178,468,545 32,183,914 40,294,468 170,357,991 35,147,381 39,947,609 165,557,763 37,506,007 39,495,066 163,568,704 Wastewater Enterprise 190,312,890 20,050,214 28,025,193 182,337,911 19,333,337 22,580,025 179,091,223 19,992,613 22,254,574 176,829,262 Housing Enterprise 5,253,407 1,296,793 1,132,747 5,417,453 1,386,688 1,250,748 5,553,393 1,414,061 1,286,298 5,681,156 Internal Service Funds (1) 84,781,492 25,262,478 29,710,753 80,333,217 24,782,467 37,177,180 67,938,504 24,753,362 34,635,863 58,056,003 Special Revenue Funds (2) 54,249,229 65,855,272 70,564,294 49,540,207 67,493,408 64,527,322 52,506,293 66,973,420 62,624,347 56,855,366 Debt Service Funds 18,532,146 6,973,804 7,014,321 18,491,629 6,965,813 6,982,871 18,474,571 6,574,657 6,606,496 18,442,732 Capital Project Funds (3) 75,285,502 49,486,334 51,460,533 73,311,303 49,245,766 82,383,975 40,173,094 29,139,745 44,905,819 24,407,020 $ 668,141,202 $ 301,074,252 $ 326,893,765 $ 642,321,689 $ 311,494,361 $ 366,422,602 $ 587,393,448 $ 297,726,801 $ 322,916,303 $ 562,203,946 are not yet capitalized or included in fund balances.
(2) Certain Special Revenue Funds are presented utilizing cash balance. (3) The majority of Capital Project Fund expenditures create assets that increase citywide net position. (1) Expenditures include discretionary payments toward long-term pension liabilities of $3.7M in FY 2025/26. Additionally, $9.6M of vehicle and equipment purchases included in expenditures 2025/26 Projected 2026/27 Budget 2027/28 Budget

49 2026/27 – 2027/28 Operating Budget

OPERATING BUDGET SUMMARY
2024/25 2025/26 2025/26 2026/27 2027/28
Actual Budget Projected Budget Budget
Beginning Fund Balances $ 658,579,428 $ 668,141,202 $ 668,141,202 $ 642,321,689 $ 587,393,448 Revenues and Other Financing Sources
Taxes $ 41,918,911 $ 44,696,055 $ 44,841,024 $ 45,649,458 $ 47,074,377 Licenses 1,063,763 1,075,634 1,135,031 1,157,733 1,180,888 Charges for Other Services 92,258,414 93,392,486 91,074,768 94,930,099 99,603,646 Use of Money and Property 18,133,698 6,792,531 11,120,828 10,001,089 8,669,254 Assessment Districts 14,834,223 15,504,963 15,530,735 15,821,010 16,053,290 Intergovernmental 12,550,187 14,841,406 13,956,051 15,366,120 29,501,683 Charges to Other Funds 9,844,289 10,227,206 10,273,520 10,809,162 11,124,908 Permits and Fines 6,224,927 6,612,448 6,360,246 6,271,887 7,005,357 Development Impact Fees 6,480,549 7,463,574 7,840,278 11,412,498 12,525,870 Franchise Fees 1,711,521 1,679,541 1,699,541 1,779,827 1,866,296 Fees and Other Revenues 8,544,758 6,052,947 7,401,011 6,367,819 6,729,687 Transfers In 94,773,711 109,997,178 89,841,219 91,927,659 56,391,545 Total Revenues and Other Financing Sources 308,338,951 318,335,969 301,074,252 311,494,361 297,726,801 Expenditures and Other Financing Uses
General Government 11,210,305 14,065,354 12,113,390 14,436,278 14,441,556 Public Safety 32,504,224 36,577,207 34,773,454 37,708,474 39,319,457 Community Development 7,053,925 8,996,068 7,575,705 8,593,985 8,689,416 Engineering 3,978,922 4,746,085 4,161,133 4,540,027 4,734,940 Streets 4,431,728 5,221,550 4,837,831 5,572,317 5,840,160 Parks and Recreation 16,684,732 19,405,183 17,693,223 19,444,960 20,306,687 Enterprise Funds 63,380,810 77,388,253 69,541,152 82,002,017 81,759,987 Community Services 9,846,986 11,759,480 10,111,803 12,708,309 13,159,835 Internal Service 21,973,450 29,919,604 27,526,229 30,714,736 27,520,361 Debt Service - Principal 8,857,880 10,143,915 7,659,826 8,189,930 8,092,386 Debt Service - Interest 3,322,911 3,646,337 3,226,025 3,399,699 3,191,391 Capital Outlay 22,507,848 101,670,172 49,445,705 79,611,247 42,899,682 Transfers Out 93,023,456 86,276,311 78,228,289 59,500,623 52,960,445 Total Expenditures and Other Financing Uses 298,777,177 409,815,519 326,893,765 366,422,602 322,916,303 Ending Fund Balances $ 668,141,202 $ 576,661,652 $ 642,321,689 $ 587,393,448 $ 562,203,946

50 2026/27 – 2027/28 Operating Budget
FY 2026/27 SUMMARY OF ACTIVITIES BY FUND TYPE
General Enterprise Internal Service Special Revenue Debt Service Capital Project Total Fund Funds Funds Funds Funds Funds All Funds
Revenues
Taxes $ 35,536,261 $ 45,183 $ 0 $ 9,317,514 $ 750,500 $ 0 $ 45,649,458 Licenses 926,186 0 0 231,547 0 0 1,157,733
Charges for Other Services 399,541 72,450,671 22,079,887 0 0 0 94,930,099 Use of Money and Property 1,200,792 3,754,401 2,345,967 2,207,924 101,715 390,290 10,001,089 Assessment Districts 0 0 0 15,821,010 0 0 15,821,010
Intergovernmental 7,168,505 0 0 6,229,405 0 1,968,210 15,366,120 Charges to Other Funds 10,773,568 35,594 0 0 0 0 10,809,162 Permits and Fines 6,271,887 0 0 0 0 0 6,271,887
Development Impact Fees 0 0 0 11,412,498 0 0 11,412,498 Franchise Fees 1,779,827 0 0 0 0 0 1,779,827
Fees and Other Revenues 2,835,764 863,929 0 258,840 2,409,286 0 6,367,819 Total Revenues 66,892,331 77,149,778 24,425,854 45,478,738 3,261,501 2,358,500 219,566,702 Transfers In 17,793,219 1,171,579 356,613 22,014,670 3,704,312 46,887,266 91,927,659 Total Revenues and Transfers In 84,685,550 78,321,357 24,782,467 67,493,408 6,965,813 49,245,766 311,494,361 Expenditures
General Government 12,239,272 0 0 2,197,006 0 0 14,436,278 Public Safety 37,308,474 0 0 400,000 0 0 37,708,474
Community Development 8,210,020 0 0 274,000 109,965 0 8,593,985 Engineering 4,540,027 0 0 0 0 0 4,540,027
Streets 5,572,317 0 0 0 0 0 5,572,317
Parks and Recreation 10,694,373 0 0 8,750,587 0 0 19,444,960 Enterprise Funds
Solid Waste 0 26,139,087 0 0 0 0 26,139,087
Water 0 33,647,311 0 636,526 0 0 34,283,837
Wastewater 0 20,067,060 0 334,785 0 0 20,401,845
Housing 0 1,177,248 0 0 0 0 1,177,248
Community Services 1,543,645 0 0 11,164,664 0 0 12,708,309 Internal Service 0 0 30,714,736 0 0 0 30,714,736
Debt Service 0 2,950,471 0 2,713,778 5,925,380 0 11,589,629 Capital Outlay 0 0 0 0 0 79,611,247 79,611,247
Total Expenditures 80,108,128 83,981,177 30,714,736 26,471,346 6,035,345 79,611,247 306,921,979 Transfers Out 4,768,805 6,493,144 6,462,444 38,055,976 947,526 2,772,728 59,500,623 Total Expenditures and Transfers Out 84,876,933 90,474,321 37,177,180 64,527,322 6,982,871 82,383,975 366,422,602 Net Result of Operations (191,383) (12,152,964) (12,394,713) 2,966,086 (17,058) (33,138,209) (54,928,241) Beginning Balance - 7/01/26 30,279,804 390,365,529 80,333,217 49,540,207 18,491,629 73,311,303 642,321,689 Fund Balance - 6/30/27 $ 30,088,421 $ 378,212,565 $ 67,938,504 $ 52,506,293 $ 18,474,571 $ 40,173,094 $ 587,393,448

51 2026/27 – 2027/28 Operating Budget
FY 2026/27 FUND BALANCE BY FUND
Estimated Estimated
7/1/2026 6/30/2027
Fund # Fund Name Fund Balance Revenues Transfers In Expenditures Transfer Out Fund Balance

GENERAL FUND
100 General Fund $ 30,279,804 $ 66,892,331 $ 17,793,219 $ 80,108,128 $ 4,768,805 $ 30,088,421

ENTERPRISE FUNDS
540,543 Solid Waste Enterprise 32,252,174 22,453,951 0 26,139,087 556,852 28,010,186 560,563 Water Enterprise 170,357,991 34,797,381 350,000 35,523,368 4,424,241 165,557,763 590,593 Wastewater Enterprise 182,337,911 19,333,337 0 21,141,474 1,438,551 179,091,223 510,511,513 Housing Enterprise 5,417,453 565,109 821,579 1,177,248 73,500 5,553,393 Total Enterprise Funds 390,365,529 77,149,778 1,171,579 83,981,177 6,493,144 378,212,565

INTERNAL SERVICE FUNDS
701 Information Systems (1) (818,786) 4,997,803 0 5,261,754 0 (1,082,737) 702 Vehicle and Equipment Replacement (2) 19,068,199 3,262,791 0 6,560,009 0 15,770,981 703 Information Systems Replacement 4,327,278 1,053,423 0 1,206,564 0 4,174,137 704 Facilities Replacement 12,240,057 1,584,273 0 4,026,447 466,590 9,331,293 705 Tuition 88,018 17,827 0 32,310 0 73,535
706 Fleet Maintenance Services 422,573 2,899,722 0 3,014,986 0 307,309 707 Facilities Maintenance Services 1,009,897 1,923,481 0 2,250,152 0 683,226 708 Parks and LLAD Replacement 27,233,201 2,353,130 72,248 2,078,528 1,404,511 26,175,540 709 Insurance 1,318,560 3,119,454 0 3,519,450 0 918,564 710 Pension/OPEB Obligation 15,444,220 3,213,950 284,365 2,764,536 4,591,343 11,586,656 Total Internal Service Funds 80,333,217 24,425,854 356,613 30,714,736 6,462,444 67,938,504 (1) This Internal Service Fund includes Pension and OPEB liability accruals, which result in a negative fund balance. This fund maintains a positive cash balance. (2) The fiscal year-end cash balance of this fund is projected to be $7.5M for FY 2025/26, $7.2M for FY 2026/27 and $6.5M for FY 2027/28.

Budget Budget

52 2026/27 – 2027/28 Operating Budget
FY 2026/27 FUND BALANCE BY FUND (continued)
Estimated Estimated
7/1/2026 6/30/2027
Fund # Fund Name Fund Balance Revenues Transfers In Expenditures Transfer Out Fund Balance

SPECIAL REVENUE FUNDS
203-209 Gas Tax $ 3,442,160 $ 3,862,614 $ 0 $ 3,438 $ 3,914,544 $ 3,386,792 214 SB1186 Disability Access 212,005 30,837 0 16,000 0 226,842 216 Police Grants 633,930 412,250 0 400,000 0 646,180
217 Grants 97,310 789,353 0 265,000 522,253 99,410
219 Economic Development Grant 396,417 245,547 0 258,000 0 383,964 230 Citywide Park Assessment District 6,458,173 4,395,082 3,428,450 7,804,502 0 6,477,203 231 Community Facilities District #2 70,779 753,632 0 15,028 763,616 45,767 232 Community Facilities District #3 670,825 1,903,018 506,958 15,237 2,559,669 505,895 233,235 Community Facilities District #4 845,195 3,457,552 121,646 16,378 3,936,234 471,781 234 Community Facilities District #5 697,553 3,246,432 37,220 16,334 3,517,627 447,244 250 Water Development Impact Fee (1) 3,049,712 3,422,774 0 1,310,721 474,000 4,687,765 251 Roadway Development Impact Fee (2) (3,445,549) 3,587,899 0 1,079,804 405,933 (1,343,387) 252 Parks and Trails Development Impact Fee (2) (2,308,023) 2,727,375 0 946,085 54,580 (581,313) 255 Wastewater Development Impact Fee (1) 7,392,570 2,109,143 0 2,374,368 0 7,127,345 256 Community Facilities Development Impact Fee (2) (299,547) 204,424 0 41,711 128,842 (265,676) 261 Development Impact Fee Administration 0 242,631 0 201,009 0 41,622 262 Agriculture Land Administration 902,337 27,425 0 140,920 0 788,842 263 Agriculture Land Acquisition 4,214,309 61,486 0 205,386 0 4,070,409 264 First-Time Homebuyer 1,936,684 52,500 0 201,189 60,000 1,727,995 265 Affordable Housing In-Lieu Fee 3,019,928 101,500 0 4,914 688,079 2,428,435 267 Public Art Administration 1,084,775 38,935 0 5,882 0 1,117,828 268 Public Art Acquisition 3,318,551 116,094 0 3,619 726 3,430,300 269 Parking In-Lieu 484 16 0 0 0 500
272 Riparian Mitigation Site Maintenance 82,784 2,800 0 0 5,584 80,000 280 Asset Forfeiture 22,302 601 0 2,000 0 20,903
281 Abandoned Vehicle Abatement 169,850 47,000 0 0 130,000 86,850 285 PEG Media 675,096 24,057 0 20,545 0 678,608
293 Measure J 1,860,815 1,398,532 0 16,589 1,610,000 1,632,758 302 City Low Income Housing 432,587 350 0 5,000 0 427,937 6xx Landscape and Lighting Assessment Districts 13,906,195 12,216,879 17,920,396 11,101,687 19,284,289 13,657,494 Total Special Revenue Funds 49,540,207 45,478,738 22,014,670 26,471,346 38,055,976 52,506,293 (1) Certain Special Revenue Funds are presented utilizing cash balance.

Budget Budget
(2) These Special Revenue Funds have funded projects in advance of receiving development impact fees, which result in a negative fund balance.

53 2026/27 – 2027/28 Operating Budget
FY 2026/27 FUND BALANCE BY FUND (continued)
Estimated Estimated
7/1/2026 6/30/2027
Fund # Fund Name Fund Balance Revenues Transfers In Expenditures Transfer Out Fund Balance

DEBT SERVICE FUNDS
445 Capital Improvement Revenue Refunding Bonds Series 2021 A & B $ 9,594,044 $ 1,444,861 $ 625,659 $ 1,801,667 $ 281,702 $ 9,581,195 448 General Obligation Bonds Series 2002 39,892 760,853 0 765,565 0 35,180 461 2019 Civic Center Project Lease Revenue Refunding Bonds 8,857,693 1,055,787 2,289,340 2,678,800 665,824 8,858,196 466 2015 Lease Financing 0 0 789,313 789,313 0 0
Total Debt Service Funds 18,491,629 3,261,501 3,704,312 6,035,345 947,526 18,474,571

CAPITAL PROJECT FUNDS
336 Roadway Improvements 13,810,064 1,968,210 3,146,914 11,548,368 0 7,376,820 337 Community Facilities Improvements 13,220,187 0 3,729,253 3,708,831 0 13,240,609 352 Parks and Trails Improvements 11,527,516 0 1,955,361 12,882,976 0 599,901 380 Civic Center Capital Improvement Financing Program 50,047 875 1,106,905 20 1,108,800 49,007 381 City Capital Improvement Financing Program (1) (865,675) 26,250 944,833 595 863,928 (759,115) 392 Capital Infrastructure 1,104,348 58,665 0 750,000 0 413,013 393 Vineyards Projects 975,975 304,500 0 0 800,000 480,475 542 Solid Waste Improvements 760,000 0 400,000 650,000 0 510,000 562 Water Improvements 22,964,096 0 3,504,000 16,536,479 0 9,931,617 592 Wastewater Improvements 9,764,745 0 32,100,000 33,533,978 0 8,330,767 Total Capital Project Funds 73,311,303 2,358,500 46,887,266 79,611,247 2,772,728 40,173,094 Total All Funds $ 642,321,689 $ 219,566,702 $ 91,927,659 $ 306,921,979 $ 59,500,623 $ 587,393,448 Budget Budget
(1) This Capital Project Fund includes a loan payable for funding projects in advance of receiving revenue, which results in a negative fund balance. This fund maintains a positive cash balance.

54 2026/27 – 2027/28 Operating Budget

SUMMARY OF REVENUES AND EXPENDITURES BY FUND TYPE
2024/25 2025/26 2025/26 2026/27 Budget 2027/28 Budget
Fund Type Actual Budget Projected Budget % Change Budget % Change

REVENUES
General Fund $ 75,047,648 $ 80,663,487 $ 78,718,835 $ 84,685,550 4.99% $ 87,965,690 3.87% Enterprise Funds
Solid Waste Enterprise 21,369,352 21,318,928 21,246,608 22,453,951 5.32% 23,407,246 4.25% Water Enterprise 45,016,372 34,511,552 32,183,914 35,147,381 1.84% 37,506,007 6.71% Wastewater Enterprise 32,280,649 18,458,645 20,050,214 19,333,337 4.74% 19,992,613 3.41% Housing Enterprise 1,304,590 1,285,558 1,296,793 1,386,688 7.87% 1,414,061 1.97% Internal Service Funds 31,038,162 24,446,224 25,262,478 24,782,467 1.38% 24,753,362 -0.12% Special Revenue Funds 63,729,581 65,848,314 65,855,272 67,493,408 2.50% 66,973,420 -0.77% Debt Service Funds 5,635,674 6,991,334 6,973,804 6,965,813 -0.37% 6,574,657 -5.62% Capital Project Funds 32,916,923 64,811,927 49,486,334 49,245,766 -24.02% 29,139,745 -40.83% Total Revenues $ 308,338,951 $ 318,335,969 $ 301,074,252 $ 311,494,361 -2.15% $ 297,726,801 -4.42%

EXPENDITURES
General Fund $ 75,047,283 $ 83,522,589 $ 77,850,975 $ 84,876,933 1.62% $ 86,476,152 1.88% Enterprise Funds
Solid Waste Enterprise 18,442,011 23,308,311 20,840,481 26,695,939 14.53% 24,631,688 -7.73% Water Enterprise 39,907,172 42,336,864 40,294,468 39,947,609 -5.64% 39,495,066 -1.13% Wastewater Enterprise 32,359,916 32,145,979 28,025,193 22,580,025 -29.76% 22,254,574 -1.44% Housing Enterprise 1,120,559 1,272,633 1,132,747 1,250,748 -1.72% 1,286,298 2.84% Internal Service Funds 24,345,208 35,498,593 29,710,753 37,177,180 4.73% 34,635,863 -6.84% Special Revenue Funds 68,122,401 81,019,788 70,564,294 64,527,322 -20.36% 62,624,347 -2.95% Debt Service Funds 6,973,143 7,022,382 7,014,321 6,982,871 -0.56% 6,606,496 -5.39% Capital Project Funds 32,459,484 103,688,380 51,460,533 82,383,975 -20.55% 44,905,819 -45.49% Total Expenditures $ 298,777,177 $ 409,815,519 $ 326,893,765 $ 366,422,602 -10.59% $ 322,916,303 -11.87%

55 2026/27 – 2027/28 Operating Budget

DETAIL OF EXPENDITURES BY CATEGORY
2024/25 2025/26 2025/26 2026/27 Budget 2027/28 Budget
Actual Budget Projected Budget % Change Budget % Change Personnel Services
Salaries $ 40,445,918 $ 47,612,366 $ 43,764,563 $ 49,631,561 4.24% $ 52,039,248 4.85% Overtime (1)
2,248,066 1,701,846 2,494,575 2,027,087 19.11% 2,051,277 1.19% Part-time 1,825,935 2,027,993 2,020,300 2,011,042 -0.84% 2,162,496 7.53% Benefits (2)
25,156,426 28,120,191 24,637,522 25,259,952 -10.17% 27,010,873 6.93% Total Personnel Services 69,676,345 79,462,396 72,916,960 78,929,642 -0.67% 83,263,894 5.49% Supplies and Services
Operating Supplies 2,004,619 2,838,873 2,559,063 2,988,629 5.28% 3,226,103 7.95% Utilities 6,505,510 8,055,534 6,553,305 7,134,038 -11.44% 7,624,003 6.87% Repairs and Maintenance 5,135,177 7,602,837 6,533,548 7,475,683 -1.67% 7,709,138 3.12% Insurance 3,674,475 4,005,415 3,617,495 3,384,615 -15.50% 3,484,495 2.95% Special Services 4,741,663 5,651,725 5,121,802 5,618,565 -0.59% 5,545,917 -1.29% Communications 515,262 494,267 509,568 581,740 17.70% 618,092 6.25% Advertising 81,528 172,818 105,480 183,100 5.95% 188,538 2.97% Training and Conferences 425,218 705,490 555,759 715,344 1.40% 720,553 0.73% Water Treatment and Conveyance 10,666,034 11,654,168 11,352,125 13,078,391 12.22% 13,935,813 6.56% Purchased Water 3,393,440 5,076,598 4,025,952 4,935,758 -2.77% 5,948,312 20.51% Contributions 300,401 528,683 515,349 674,040 27.49% 667,975 -0.90% Legal Services 601,226 1,121,587 882,486 1,181,373 5.33% 1,139,411 -3.55% Contractual Services 12,591,677 16,599,230 15,222,043 17,317,282 4.33% 17,854,832 3.10% Interfund Services 10,647,981 11,159,502 11,158,902 11,710,506 4.94% 12,106,513 3.38% Interest Expense 3,322,911 3,646,337 3,226,025 3,399,699 -6.76% 3,191,391 -6.13% Depreciation/Amortization 8,576,486 11,139,530 9,103,660 11,531,362 3.52% 12,830,783 11.27% Developer Reimbursement 614,770 894,902 594,669 799,508 -10.66% 734,340 -8.15% Other 7,206,800 10,652,865 8,784,894 9,953,228 -6.57% 9,415,182 -5.41% Total Supplies and Services 81,005,178 102,000,361 90,422,125 102,662,861 0.65% 106,941,391 4.17% Internal Services
Internal Service 23,041,309 21,965,423 21,965,423 22,079,887 0.52% 22,371,556 1.32% Total Internal Services 23,041,309 21,965,423 21,965,423 22,079,887 0.52% 22,371,556 1.32% Capital Outlay and Transfers Out
Capital Outlay 23,173,009 109,967,113 55,701,142 95,059,659 -13.56% 49,286,631 -48.15% Debt Service 8,857,880 10,143,915 7,659,826 8,189,930 -19.26% 8,092,386 -1.19% Transfers 93,023,456 86,276,311 78,228,289 59,500,623 -31.03% 52,960,445 -10.99% Total Capital Outlay and Transfers Out 125,054,345 206,387,339 141,589,257 162,750,212 -21.14% 110,339,462 -32.20% Total Expenditures $ 298,777,177 $ 409,815,519 $ 326,893,765 $ 366,422,602 -10.59% $ 322,916,303 -11.87% (1) Due to record-high personnel vacancies, overtime costs are projected to exceed budget, however there will be significant savings in regular salaries. Total Personnel Services projections will come in well below budget.
(2) Includes discretionary payments toward long-term pension liabilities of $3.3M in FY 2024/25 and $3.7M in FY 2025/26.

56 2026/27 – 2027/28 Operating Budget

SUMMARY OF EXPENDITURES BY CATEGORY

57 2026/27 – 2027/28 Operating Budget

SUMMARY OF EXPENDITURES BY CATEGORY AND FUND TYPE
2024/25 2025/26 2025/26 2026/27 2027/28
Actual Budget Projected Budget Budget
Personnel Services
General Fund $ 44,290,895 $ 51,475,558 $ 47,595,353 $ 53,422,355 $ 56,142,289 Enterprise Funds
Solid Waste Enterprise 5,122,150 5,793,656 5,374,988 6,243,498 6,798,863 Water Enterprise 5,298,108 5,522,827 5,036,259 5,771,393 6,048,122 Wastewater Enterprise 5,260,167 5,917,606 5,341,958 6,184,440 6,522,019 Housing Enterprise 552,058 550,543 540,464 578,571 602,915 Internal Service Funds 7,507,620 8,306,865 7,306,353 5,021,039 5,355,940 Special Revenue Funds 1,645,347 1,895,341 1,721,585 1,708,346 1,793,746 Total Personnel Services $ 69,676,345 $ 79,462,396 $ 72,916,960 $ 78,929,642 $ 83,263,894 Annual Percentage Change 4.65% -0.67% 5.49%
Supplies and Services
General Fund $ 11,079,873 $ 14,647,777 $ 12,842,313 $ 14,519,370 $ 14,674,715 Enterprise Funds
Solid Waste Enterprise 8,525,840 10,862,481 9,753,620 10,694,870 11,263,048 Water Enterprise 21,739,886 25,600,522 24,474,251 26,382,486 28,333,738 Wastewater Enterprise 8,783,228 12,621,940 10,031,647 12,042,448 12,786,639 Housing Enterprise 334,610 539,595 410,255 490,621 498,689 Internal Service Funds 12,961,315 15,694,779 14,611,109 15,799,109 16,483,933 Special Revenue Funds 15,616,660 20,458,085 16,730,750 20,527,206 21,559,551 Debt Service Funds 1,661,490 1,574,798 1,566,737 1,456,136 1,340,848 Capital Project Funds 302,276 384 1,443 750,615 230
Total Supplies and Services $ 81,005,178 $ 102,000,361 $ 90,422,125 $ 102,662,861 $ 106,941,391 Annual Percentage Change 11.63% 0.65% 4.17%

58 2026/27 – 2027/28 Operating Budget
SUMMARY OF EXPENDITURES BY CATEGORY AND FUND TYPE (continued) 2024/25 2025/26 2025/26 2026/27 2027/28
Actual Budget Projected Budget Budget
Internal Services
General Fund $ 12,035,983 $ 12,053,922 $ 12,053,922 $ 11,982,302 $ 12,317,176 Enterprise Funds
Solid Waste Enterprise 3,689,305 3,658,701 3,658,701 3,958,538 4,307,455 Water Enterprise 1,919,725 1,887,821 1,887,821 1,589,089 1,629,522 Wastewater Enterprise 1,873,205 1,850,669 1,850,669 1,669,185 1,712,677 Housing Enterprise 145,139 142,112 142,112 106,576 109,714 Internal Service Funds 1,105,440 1,074,097 1,074,097 797,956 814,645 Special Revenue Funds 2,272,512 1,298,101 1,298,101 1,976,241 1,480,367 Total Internal Services $ 23,041,309 $ 21,965,423 $ 21,965,423 $ 22,079,887 $ 22,371,556 Annual Percentage Change -4.67% 0.52% 1.32%
Capital Outlay and Transfers Out
General Fund $ 7,640,532 $ 5,345,332 $ 5,359,387 $ 4,952,906 $ 3,341,972 Enterprise Funds
Solid Waste Enterprise 1,104,716 2,993,473 2,053,172 5,799,033 2,262,322 Water Enterprise 10,949,453 9,325,694 8,896,137 6,204,641 3,483,684 Wastewater Enterprise 16,443,316 11,755,764 10,800,919 2,683,952 1,233,239 Housing Enterprise 88,752 40,383 39,916 74,980 74,980
Internal Service Funds 2,770,833 10,422,852 6,719,194 15,559,076 11,981,345 Special Revenue Funds 48,587,882 57,368,261 50,813,858 40,315,529 37,790,683 Debt Service Funds 5,311,653 5,447,584 5,447,584 5,526,735 5,265,648 Capital Project Funds 32,157,208 103,687,996 51,459,090 81,633,360 44,905,589 Total Capital Outlay and Transfers Out $ 125,054,345 $ 206,387,339 $ 141,589,257 $ 162,750,212 $ 110,339,462 Annual Percentage Change 13.22% -21.14% -32.20%

59 2026/27 – 2027/28 Operating Budget

GENERAL FUND
2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Projected Budget Budget Projected Projected Projected Projected Projected Projected Projected Fund Balance 7/1 $ 29,411,944 $ 30,279,804 $ 30,088,421 $ 31,577,959 $ 31,609,959 $ 32,232,959 $ 32,734,959 $ 33,725,959 $ 34,581,959 $ 35,205,259 Add:

Revenues 66,223,464 66,892,331 69,491,387 70,873,000 72,646,000 74,597,000 76,724,000 79,525,000 82,118,000 84,740,000 Transfers In 12,495,371 17,793,219 18,474,303 15,535,000 15,692,000 16,621,000 17,540,000 17,777,000 18,471,000 18,500,000 Total Revenue 78,718,835 84,685,550 87,965,690 86,408,000 88,338,000 91,218,000 94,264,000 97,302,000 100,589,000 103,240,000 Less:

Expenditures 73,379,706 80,108,128 83,148,223 80,778,000 82,938,000 85,419,000 87,695,000 90,608,000 93,196,000 96,131,000 Operating Transfers Out 3,397,811 3,212,395 3,327,929 4,573,000 4,527,000 4,847,000 5,578,000 5,838,000 6,017,000 6,144,000 Total Appropriations 76,777,517 83,320,523 86,476,152 85,351,000 87,465,000 90,266,000 93,273,000 96,446,000 99,213,000 102,275,000 Revenue Over (Under) Appropriations 1,941,318 1,365,027 1,489,538 1,057,000 873,000 952,000 991,000 856,000 1,376,000 965,000 Non-Operating Transfers Out 1,073,458 1,556,410 0 1,025,000 250,000 450,000 0 0 752,700 0 Revenue Over (Under) Appropriations 867,860 (191,383) 1,489,538 32,000 623,000 502,000 991,000 856,000 623,300 965,000 Fund Balance 6/30 $ 30,279,804 $ 30,088,421 $ 31,577,959 $ 31,609,959 $ 32,232,959 $ 32,734,959 $ 33,725,959 $ 34,581,959 $ 35,205,259 $ 36,170,259 Note, beginning in FY 2028/29, projected amounts account for budgetary savings resulting in lower total appropriations and transfer in requirements. Please see the Executive Summary - Long-Range Planning Fiscal Model discussion for assumptions utilized in the development of this schedule.

60 2026/27 – 2027/28 Operating Budget

SOLID WASTE ENTERPRISE FUND
2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Projected Budget Budget Projected Projected Projected Projected Projected Projected Projected Net Assets 7/1 $ 31,846,047 $ 34,306,608 $ 35,863,653 $ 36,901,533 $ 37,690,562 $ 38,357,462 $ 38,809,564 $ 39,096,553 $ 39,131,222 $ 38,981,990 Add:

Operating Revenues 21,246,608 22,453,951 23,407,246 24,072,582 24,751,656 25,350,390 26,017,897 26,708,962 27,449,798 28,172,894 Total Operating Revenue 21,246,608 22,453,951 23,407,246 24,072,582 24,751,656 25,350,390 26,017,897 26,708,962 27,449,798 28,172,894 Less:

Operations 19,594,151 26,139,087 22,875,480 23,800,503 24,612,625 25,436,862 26,280,926 27,236,142 28,173,399 29,164,711 Total Operating Appropriations 19,594,151 26,139,087 22,875,480 23,800,503 24,612,625 25,436,862 26,280,926 27,236,142 28,173,399 29,164,711 Revenue Over (Under)
Operating Appropriations 1,652,457 (3,685,136) 531,766 272,079 139,031 (86,472) (263,029) (527,180) (723,601) (991,817) Non-Operating Revenues
and Appropriations (1,246,330) (556,852) (1,756,208) (150,061) (360,061) (460,061) (160,061) (160,061) (160,061) (160,061) Revenue Over (Under)
Appropriations 406,127 (4,241,988) (1,224,442) 122,018 (221,030) (546,533) (423,090) (687,241) (883,662) (1,151,878) Adjustments to Net Assets (1) 2,054,434 5,799,033 2,262,322 667,011 887,930 998,635 710,079 721,910 734,430 747,158 Net Assets 6/30 (1) $ 34,306,608 $ 35,863,653 $ 36,901,533 $ 37,690,562 $ 38,357,462 $ 38,809,564 $ 39,096,553 $ 39,131,222 $ 38,981,990 $ 38,577,270 Please see the Executive Summary - Long-Range Planning discussion for details on how this schedule is developed. (1) Some capital expenditures and transfers to fund capital projects are presented as an adjustment as these expenditures are eliminated in the calculation of Net Assets. For this reason, Net Assets presented here may differ from Fund Balance.

61 2026/27 – 2027/28 Operating Budget

WATER ENTERPRISE FUND
2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Projected Budget Budget Projected Projected Projected Projected Projected Projected Projected Net Assets 7/1 $ 178,468,545 $ 179,254,128 $ 180,658,541 $ 182,153,166 $ 183,898,023 $ 185,919,646 $ 188,169,248 $ 191,117,278 $ 195,005,562 $ 199,628,795 Add:

Operating Revenues 31,833,914 34,797,381 37,156,007 38,615,998 40,181,111 41,651,130 43,321,931 45,045,782 46,927,020 48,842,314 Total Operating Revenue 31,833,914 34,797,381 37,156,007 38,615,998 40,181,111 41,651,130 43,321,931 45,045,782 46,927,020 48,842,314 Less:

Operations 33,418,886 35,523,368 37,643,178 38,772,714 39,794,780 41,116,820 42,179,193 43,047,790 44,289,079 45,715,680 Total Operating Appropriations 33,418,886 35,523,368 37,643,178 38,772,714 39,794,780 41,116,820 42,179,193 43,047,790 44,289,079 45,715,680 Revenue Over (Under)
Operating Appropriations (1,584,972) (725,987) (487,171) (156,716) 386,331 534,310 1,142,738 1,997,992 2,637,941 3,126,634 Non-Operating Revenues
and Appropriations (6,525,582) (4,074,241) (1,501,888) 203,047 (131,506) (103,557) (1,076,230) (1,076,230) (1,076,230) (1,076,230) Revenue Over (Under)
Appropriations (8,110,554) (4,800,228) (1,989,059) 46,331 254,825 430,753 66,508 921,762 1,561,711 2,050,404 Adjustments to Net Assets (1) 8,896,137 6,204,641 3,483,684 1,698,526 1,766,798 1,818,849 2,881,522 2,966,522 3,061,522 3,166,522 Net Assets 6/30 (1) $ 179,254,128 $ 180,658,541 $ 182,153,166 $ 183,898,023 $ 185,919,646 $ 188,169,248 $ 191,117,278 $ 195,005,562 $ 199,628,795 $ 204,845,721 Please see the Executive Summary - Long-Range Planning discussion for details on how this schedule is developed. (1) Some capital expenditures and transfers to fund capital projects are presented as an adjustment as these expenditures are eliminated in the calculation of Net Assets. For this reason, Net Assets may differ from Fund Balance.

62 2026/27 – 2027/28 Operating Budget

WASTEWATER ENTERPRISE FUND
2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Projected Budget Budget Projected Projected Projected Projected Projected Projected Projected Net Assets 7/1 $ 190,312,890 $ 193,138,830 $ 192,576,094 $ 193,247,372 $ 192,122,146 $ 191,434,359 $ 191,259,935 $ 191,979,169 $ 193,584,958 $ 195,627,959 Add:

Operating Revenues 20,050,214 19,333,337 19,992,613 21,040,978 22,086,619 23,343,517 24,788,619 26,311,147 27,358,195 28,423,332 Total Operating Revenue 20,050,214 19,333,337 19,992,613 21,040,978 22,086,619 23,343,517 24,788,619 26,311,147 27,358,195 28,423,332 Less:

Operations 17,511,862 21,141,474 22,036,367 24,853,954 25,471,069 26,223,626 26,784,202 27,429,418 28,048,612 28,701,615 Total Operating Appropriations 17,511,862 21,141,474 22,036,367 24,853,954 25,471,069 26,223,626 26,784,202 27,429,418 28,048,612 28,701,615 Revenue Over (Under)
Operating Appropriations 2,538,352 (1,808,137) (2,043,754) (3,812,976) (3,384,450) (2,880,109) (1,995,583) (1,118,271) (690,417) (278,283) Non-Operating Revenues
and Appropriations (10,513,331) (1,438,551) (218,207) (7,294,464) (248,940) (238,458) (1,538,458) (1,538,458) (1,538,458) (1,538,458) Revenue Over (Under)
Appropriations (7,974,979) (3,246,688) (2,261,961) (11,107,440) (3,633,390) (3,118,567) (3,534,041) (2,656,729) (2,228,875) (1,816,741) Adjustments to Net Assets (1) 10,800,919 2,683,952 2,933,239 9,982,214 2,945,603 2,944,143 4,253,275 4,262,518 4,271,876 4,278,972 Net Assets 6/30 (1) $ 193,138,830 $ 192,576,094 $ 193,247,372 $ 192,122,146 $ 191,434,359 $ 191,259,935 $ 191,979,169 $ 193,584,958 $ 195,627,959 $ 198,090,190 Please see the Executive Summary - Long-Range Planning disussion for details on how this schedule is developed. (1) Some capital expenditures and transfers to fund capital projects are presented as an adjustment as these expenditures are eliminated in the calculation of Net Assets. For this reason, Net Assets presented here may differ from Fund Balance.

63 2026/27 – 2027/28 Operating Budget

HOUSING ENTERPRISE FUND
2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Projected Budget Budget Projected Projected Projected Projected Projected Projected Projected Net Assets 7/1 $ 5,253,407 $ 5,417,453 $ 5,553,393 $ 5,681,156 $ 5,812,752 $ 5,948,296 $ 6,087,906 $ 6,231,704 $ 6,379,816 $ 6,532,372 Add:

Revenues 1,296,793 1,386,688 1,414,061 1,456,483 1,500,177 1,545,183 1,591,538 1,639,284 1,688,463 1,739,117 Total Revenue 1,296,793 1,386,688 1,414,061 1,456,483 1,500,177 1,545,183 1,591,538 1,639,284 1,688,463 1,739,117 Less:

Operations 1,132,747 1,250,748 1,286,298 1,324,887 1,364,634 1,405,573 1,447,740 1,491,172 1,535,907 1,581,984 Total Appropriations 1,132,747 1,250,748 1,286,298 1,324,887 1,364,634 1,405,573 1,447,740 1,491,172 1,535,907 1,581,984 Revenue Over (Under)
Operating Appropriations 164,046 135,940 127,763 131,596 135,544 139,610 143,798 148,112 152,556 157,132 Net Assets 6/30 $ 5,417,453 $ 5,553,393 $ 5,681,156 $ 5,812,752 $ 5,948,296 $ 6,087,906 $ 6,231,704 $ 6,379,816 $ 6,532,372 $ 6,689,505 Projected revenues and operating appropriations are increased annually by a 3% CPI for FY 2028/29 through FY 2034/35.

64 2026/27 – 2027/28 Operating Budget

FUND BALANCES
The City’s Fund Balances represent accumulated funds available to be spent in the future. The majority of the City’s fund balances are restricted for specific purposes and are not available for general purposes.

FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
Actuals Projected Budget Budget
General Fund $ 29,411,944 $ 30,279,804 $ 30,088,421 $ 31,577,959 Enterprise Funds 405,880,889 390,365,529 378,212,565 372,864,866 Internal Service Funds 84,781,492 80,333,217 67,938,504 58,056,003 Special Revenue Funds 54,249,229 49,540,207 52,506,293 56,855,366 Debt Service Funds 18,532,146 18,491,629 18,474,571 18,442,732 Capital Project Funds 75,285,502 73,311,303 40,173,094 24,407,020 Total Fund Balance $ 668,141,202 $ 642,321,689 $ 587,393,448 $ 562,203,946 • The General Fund balance is decreasing in FY 2026/27 due to the use of fund balance committed in FY 2025/26 for remaining Strategic Initiative costs and funding the Comprehensive General Plan Update project, partially offset by increases necessary to meet the 30% reserve requirement. In FY 2027/28, the fund balance is projected to increase in order to meet the 30% reserve requirement. • The Internal Service Funds balance is decreasing due to the budgeted use of $9.6 million for citywide vehicle and equipment replacements from FY 2025/26 through FY 2027/28. These purchases are included in expenditures but not yet capitalized or included in fund balance. Once purchased these new vehicles will be added back to the fund balance total. Additional fund balance decreases are due to scheduled parks and LLAD replacements of $2.9 million and facilities replacements of $1.9 million. Also, $9.5 million from the Pension/OPEB Obligation Fund is budgeted to be transferred to the General Fund for budget stabilization purposes in FY 2026/27 through FY 2027/28, although the majority of this transfer is not expected to be made due to expenditure savings and conservative budgeting practices.
• Development Impact Fee revenues are collected to pay for infrastructure necessary from growth and development and are accounted for in Special Revenue Funds. Several projects were funded from Development Impact Fee funds in FY 2025/26 including the Brentwood Boulevard Widening North - Phase I and Pump Station 2.4 Installation projects.

65 2026/27 – 2027/28 Operating Budget
• Capital Project Funds balance is projected to decrease as resources are used to construct capital projects, including the Lone Tree Way Roadway Improvements, Lone Tree Way – Union Pacific At-Grade Crossing, Sand Creek Sports Complex, Wastewater Treatment Plant Expansion – Phase II, Vineyards at Marsh Creek – Theater/Event Center/Amphitheater Phase I and several water projects. Funds were previously accumulated in the Capital Project Funds for this purpose. • The FY 2027/28 Citywide fund balances detailed above do not include the capitalization of approximately $91 million of certain Solid Waste, Water and Wastewater Improvement projects, and as such are understated. In addition, the City is expecting approximately $80 million in spending on Roadway, Parks and Trails and Community Facilities Improvement projects by the end of FY 2027/28.

Funds for these projects have been accumulated over many years for this purpose. This spending results in the creation of citywide public assets, but does not increase fund balances in accordance with governmental accounting standards.

66 2026/27 – 2027/28 Operating Budget

GENERAL FUND
2024/25 2025/26 2025/26 2026/27 2027/28
Actual Budget Projected Budget Budget
Fund Balance, Beginning of Year $ 29,411,579 $ 29,411,944 $ 29,411,944 $ 30,279,804 $ 30,088,421 Revenues 63,458,409 65,151,364 66,223,464 66,892,331 69,491,387 Transfers In 11,589,239 15,512,123 12,495,371 17,793,219 18,474,303 Expenditures (69,330,565) (79,192,977) (73,379,706) (80,108,128) (83,148,223) Transfers Out (5,716,718) (4,329,612) (4,471,269) (4,768,805) (3,327,929) Revenues Over (Under) Expenditures 365 (2,859,102) 867,860 (191,383) 1,489,538 Fund Balance, End of Year $ 29,411,944 $ 26,552,842 $ 30,279,804 $ 30,088,421 $ 31,577,959 Fund Balance:

Committed
General Plan Update $ 622,600 $ 984,900 $ 1,350,000 $ 307,300 $ 783,200 City Council Redistricting 125,000 150,000 150,000 175,000 200,000 Future Capital Projects 800,000 800,000 800,000 800,000 800,000 Heron Park Restroom Project 0 0 500,000 500,000 500,000 Future Strategic Initiatives 364,960 0 171,960 0 0
Police Department 5th Beat 2,363,275 2,363,275 2,363,275 2,363,275 2,363,275 Successor Agency Payment Plan 687,303 0 0 0 0
Total Committed 4,963,138 4,298,175 5,335,235 4,145,575 4,646,475 Unassigned
Undesignated 24,448,806 22,254,667 24,944,569 25,942,846 26,931,484 Total Unassigned 24,448,806 22,254,667 24,944,569 25,942,846 26,931,484 Percent of Operating Appropriations 30.15% 26.76% 30.00% 30.00% 30.00% Total Fund Balance, End of Year $ 29,411,944 $ 26,552,842 $ 30,279,804 $ 30,088,421 $ 31,577,959

67 2026/27 – 2027/28 Operating Budget

OTHER FUNDS
Fund Balance Fund Balance Fund Balance Fund Balance
& Reserves & Reserves & Reserves & Reserves
Fund # Fund Name at 6/30/2025 Revenues Expenditures at 6/30/2026 Revenues Expenditures at 6/30/2027 Revenues Expenditures at 6/30/2028

ENTERPRISE FUNDS
540,543 Solid Waste Enterprise $ 31,846,047 $ 21,246,608 $ 20,840,481 $ 32,252,174 $ 22,453,951 $ 26,695,939 $ 28,010,186 $ 23,407,246 $ 24,631,688 $ 26,785,744 560,563 Water Enterprise 178,468,545 32,183,914 40,294,468 170,357,991 35,147,381 39,947,609 165,557,763 37,506,007 39,495,066 163,568,704 590,593 Wastewater Enterprise 190,312,890 20,050,214 28,025,193 182,337,911 19,333,337 22,580,025 179,091,223 19,992,613 22,254,574 176,829,262 510,511,513 Housing Enterprise 5,253,407 1,296,793 1,132,747 5,417,453 1,386,688 1,250,748 5,553,393 1,414,061 1,286,298 5,681,156 Total Enterprise Funds 405,880,889 74,777,529 90,292,889 390,365,529 78,321,357 90,474,321 378,212,565 82,319,927 87,667,626 372,864,866

INTERNAL SERVICE FUNDS
701 Information Systems (1) (482,253) 4,542,130 4,878,663 (818,786) 4,997,803 5,261,754 (1,082,737) 5,285,201 5,521,193 (1,318,729) 702 Vehicle and Equipment Replacement (2) 21,951,110 2,476,477 5,359,388 19,068,199 3,262,791 6,560,009 15,770,981 3,244,965 7,121,324 11,894,622 703 Information Systems Replacement 4,091,489 1,039,384 803,595 4,327,278 1,053,423 1,206,564 4,174,137 1,026,219 861,767 4,338,589 704 Facilities Replacement 12,059,665 1,530,271 1,349,879 12,240,057 1,584,273 4,493,037 9,331,293 1,601,138 544,699 10,387,732 705 Tuition 86,794 17,887 16,663 88,018 17,827 32,310 73,535 17,163 32,370 58,328 706 Fleet Maintenance Services 375,113 2,670,167 2,622,707 422,573 2,899,722 3,014,986 307,309 3,248,386 3,329,956 225,739 707 Facilities Maintenance Services 1,058,644 2,183,174 2,231,921 1,009,897 1,923,481 2,250,152 683,226 1,994,679 2,324,463 353,442 708 Parks and LLAD Replacement 28,493,960 1,789,063 3,049,822 27,233,201 2,425,378 3,483,039 26,175,540 1,848,523 3,642,447 24,381,616 709 Insurance 819,607 3,979,676 3,480,723 1,318,560 3,119,454 3,519,450 918,564 3,218,844 3,618,834 518,574 710 Pension/OPEB Obligation 16,327,363 5,034,249 5,917,392 15,444,220 3,498,315 7,355,879 11,586,656 3,268,244 7,638,810 7,216,090 Total Internal Service Funds 84,781,492 25,262,478 29,710,753 80,333,217 24,782,467 37,177,180 67,938,504 24,753,362 34,635,863 58,056,003

SPECIAL REVENUE FUNDS
203-209 Gas Tax 3,348,304 3,784,700 3,690,844 3,442,160 3,862,614 3,917,982 3,386,792 3,890,555 3,924,945 3,352,402 214 SB1186 Disability Access 181,549 32,449 1,993 212,005 30,837 16,000 226,842 31,188 10,121 247,909 216 Police Grants 456,562 626,728 449,360 633,930 412,250 400,000 646,180 412,188 400,000 658,368 217 Grants 529,032 143,973 575,695 97,310 789,353 787,253 99,410 226,950 225,000 101,360 219 Economic Development Grant 339,842 239,475 182,900 396,417 245,547 258,000 383,964 249,178 290,000 343,142 230 Citywide Park Assessment District 4,943,864 8,257,214 6,742,905 6,458,173 7,823,532 7,804,502 6,477,203 8,038,473 8,260,329 6,255,347 231 Community Facilities District #2 65,395 739,532 734,148 70,779 753,632 778,644 45,767 768,301 793,693 20,375 232 Community Facilities District #3 645,433 2,437,763 2,412,371 670,825 2,409,976 2,574,906 505,895 2,365,355 2,533,571 337,679 233,235 Community Facilities District #4 827,393 3,484,208 3,466,406 845,195 3,579,198 3,952,612 471,781 3,675,404 4,054,047 93,138 234 Community Facilities District #5 689,249 3,166,154 3,157,850 697,553 3,283,652 3,533,961 447,244 3,539,913 3,794,822 192,335 250 Water Development Impact Fee (3) 7,104,332 2,882,812 6,937,432 3,049,712 3,422,774 1,784,721 4,687,765 3,287,403 1,647,606 6,327,562 251 Roadway Development Impact Fee (4) 1,560,571 2,836,681 7,842,801 (3,445,549) 3,587,899 1,485,737 (1,343,387) 3,895,784 1,202,572 1,349,825 252 Parks and Trails Development Impact Fee (4) (2,989,165) 1,663,304 982,162 (2,308,023) 2,727,375 1,000,665 (581,313) 3,264,513 749,679 1,933,521 255 Wastewater Development Impact Fee (3) 6,854,846 1,399,585 861,861 7,392,570 2,109,143 2,374,368 7,127,345 2,297,640 2,368,623 7,056,362 256 Community Facilities Development Impact Fee (4) (256,555) 121,459 164,451 (299,547) 204,424 170,553 (265,676) 216,230 153,439 (202,885) 261 Development Impact Fee Administration 50,632 174,388 225,020 0 242,631 201,009 41,622 257,653 151,071 148,204 (1) This Internal Service Fund includes Pension and OPEB liability accruals, which result in a negative fund balance. This fund maintains a positive cash balance. (2) The fiscal year-end cash balance of this fund is projected to be $7.5M for FY 2025/26, $7.2M for FY 2026/27 and $6.5M for FY 2027/28. (3) Certain Special Revenue Funds are presented utilizing cash balances. (4) These Special Revenue Funds have funded projects in advance of receiving development impact fees, which result in a negative fund balance. 2025/26 Projected 2026/27 Budget 2027/28 Budget

68 2026/27 – 2027/28 Operating Budget
OTHER FUNDS (continued)
Fund Balance Fund Balance Fund Balance Fund Balance
& Reserves & Reserves & Reserves & Reserves
Fund # Fund Name at 6/30/2025 Revenues Expenditures at 6/30/2026 Revenues Expenditures at 6/30/2027 Revenues Expenditures at 6/30/2028 SPECIAL REVENUE FUNDS (Continued)
262 Agriculture Land Administration $ 874,095 $ 80,983 $ 52,741 $ 902,337 $ 27,425 $ 140,920 $ 788,842 $ 22,993 $ 47,243 $ 764,592 263 Agriculture Land Acquisition 3,939,028 339,623 64,342 4,214,309 61,486 205,386 4,070,409 56,723 11,462 4,115,670 264 First-Time Homebuyer 2,025,681 41,765 130,762 1,936,684 52,500 261,189 1,727,995 48,750 261,256 1,515,489 265 Affordable Housing In-Lieu Fee 3,636,390 91,407 707,869 3,019,928 101,500 692,993 2,428,435 68,250 721,319 1,775,366 267 Public Art Administration 1,025,014 78,603 18,842 1,084,775 38,935 5,882 1,117,828 37,279 5,961 1,149,146 268 Public Art Acquisition 3,052,210 281,641 15,300 3,318,551 116,094 4,345 3,430,300 111,319 4,638 3,536,981 269 Parking In-Lieu 469 15 0 484 16 0 500 15 0 515
272 Riparian Mitigation Site Maintenance 81,748 3,236 2,200 82,784 2,800 5,584 80,000 2,600 2,600 80,000 280 Asset Forfeiture 23,453 849 2,000 22,302 601 2,000 20,903 585 2,000 19,488 281 Abandoned Vehicle Abatement 191,947 47,903 70,000 169,850 47,000 130,000 86,850 43,250 130,000 100 285 PEG Media 654,388 21,092 384 675,096 24,057 20,545 678,608 23,112 20,596 681,124 293 Measure J 2,049,825 1,377,137 1,566,147 1,860,815 1,398,532 1,626,589 1,632,758 1,413,854 1,626,685 1,419,927 302 City Low Income Housing 436,917 670 5,000 432,587 350 5,000 427,937 325 5,000 423,262 6xx Landscape and Lighting Assessment Districts 11,906,780 31,499,923 29,500,508 13,906,195 30,137,275 30,385,976 13,657,494 28,727,637 29,226,069 13,159,062 Total Special Revenue Funds 54,249,229 65,855,272 70,564,294 49,540,207 67,493,408 64,527,322 52,506,293 66,973,420 62,624,347 56,855,366

DEBT SERVICE FUNDS
445 Capital Improvement Revenue Refunding Bonds Series 2021 A & B 9,616,594 2,050,440 2,072,990 9,594,044 2,070,520 2,083,369 9,581,195 1,742,445 1,768,750 9,554,890 448 General Obligation Bonds Series 2002 58,380 711,807 730,295 39,892 760,853 765,565 35,180 799,614 805,615 29,179 461 2019 Civic Center Project Lease Revenue Refunding Bonds 8,857,172 3,424,169 3,423,648 8,857,693 3,345,127 3,344,624 8,858,196 3,242,460 3,241,993 8,858,663 466 2015 Lease Financing 0 787,388 787,388 0 789,313 789,313 0 790,138 790,138 0 Total Debt Service Funds 18,532,146 6,973,804 7,014,321 18,491,629 6,965,813 6,982,871 18,474,571 6,574,657 6,606,496 18,442,732

CAPITAL PROJECT FUNDS
336 Roadway Improvements 17,334,862 7,207,437 10,732,235 13,810,064 5,115,124 11,548,368 7,376,820 19,584,321 11,947,531 15,013,610 337 Community Facilities Improvements 12,526,758 2,072,755 1,379,326 13,220,187 3,729,253 3,708,831 13,240,609 1,721,619 13,212,653 1,749,575 352 Parks and Trails Improvements 22,564,349 2,001,178 13,038,011 11,527,516 1,955,361 12,882,976 599,901 2,052,250 2,101,250 550,901 380 Civic Center Capital Improvement Financing Program 54,381 1,179,121 1,183,455 50,047 1,107,780 1,108,820 49,007 1,009,325 1,010,376 47,956 381 City Capital Improvement Financing Program (1) (943,656) 910,797 832,816 (865,675) 971,083 864,523 (759,115) 1,030,639 995,991 (724,467) 392 Capital Infrastructure 537,114 567,234 0 1,104,348 58,665 750,000 413,013 19,841 0 432,854 393 Vineyards Projects 584,868 391,107 0 975,975 304,500 800,000 480,475 139,750 0 620,225 542 Solid Waste Improvements 0 1,010,000 250,000 760,000 400,000 650,000 510,000 1,700,000 2,000,000 210,000 562 Water Improvements 10,943,878 15,217,047 3,196,829 22,964,096 3,504,000 16,536,479 9,931,617 1,702,000 7,202,000 4,431,617 592 Wastewater Improvements 11,682,948 18,929,658 20,847,861 9,764,745 32,100,000 33,533,978 8,330,767 180,000 6,436,018 2,074,749 Total Capital Project Funds 75,285,502 49,486,334 51,460,533 73,311,303 49,245,766 82,383,975 40,173,094 29,139,745 44,905,819 24,407,020 TOTAL OTHER FUNDS $ 638,729,258 $ 222,355,417 $ 249,042,790 $ 612,041,885 $ 226,808,811 $ 281,545,669 $ 557,305,027 $ 209,761,111 $ 236,440,151 $ 530,625,987 (1) This Capital Project Fund includes a loan payable for funding projects in advance of receiving revenue, which results in a negative fund balance. This fund maintains a positive cash balance. 2025/26 Projected 2026/27 Budget 2027/28 Budget

69 2026/27 – 2027/28 Operating Budget

SUMMARY OF CHANGES IN FUND BALANCE
Major Funds
The General Fund and Water Enterprise Fund are classified as major budgetary funds in both FY 2026/27 and FY 2027/28. In FY 2026/27, the Solid Waste Enterprise Fund and Wastewater Improvements Fund are also classified as major budgetary funds. The method used for determining a Major Budgetary Fund can be found on page 34. The General Fund projects a reduction in fund balance of less than 1% in FY 2026/27 due primarily to the use of fund balance committed in FY 2025/26 for remaining Strategic Initiative costs and funding the Comprehensive General Plan Update project, partially offset by increases necessary to meet the 30% reserve requirement. The FY 2027/28 General Fund balance increases as needed to meet the 30% reserve requirement. The Water Enterprise projects a reduction in fund balance of just under 3% in FY 2026/27 and approximately 1% in FY 2027/28 as a result of funding capital expenditures not yet recognized as capitalized assets. The Wastewater Improvements Fund projects a reduction in fund balance of approximately 15% as funds are utilized to complete capital projects. The large revenue and expenditures that qualify the fund for Major Fund classification are related to the Wastewater Treatment Plant Expansion – Phase II project. The Solid Waste Enterprise Fund projects a decrease in fund balance of 13% in FY 2026/27 from cost increases associated with the implementation of enhanced collection services for organic waste.

Non-Major Funds (in Aggregate)
The change in fund balance for all other non-major budgetary funds, in aggregate, is projected to be a decrease of 11.1% for FY 2026/27 and 6.3% for FY 2027/28. The decreases are primarily in Capital Project Fund balances as resources are used to construct various capital projects. The decline in Capital Project Funds has been anticipated for this purpose.

Projected Budget Budget Budget
Fund Balance Fund Balance Fund Balance Fund Balance
& Reserves & Reserves & Reserves & Reserves
Fund # Fund Name at 6/30/2026 at 6/30/2027 Change % Change Fund # Fund Name at 6/30/2027 at 6/30/2028 Change % Change

GENERAL FUND GENERAL FUND
100 General Fund $ 30,279,804 $ 30,088,421 $ (191,383) -0.63% 100 General Fund $ 30,088,421 $ 31,577,959 $ 1,489,538 4.95%

ENTERPRISE FUNDS ENTERPRISE FUNDS
540, 543 Solid Waste Enterprise 32,252,174 28,010,186 (4,241,988) -13.15% 560, 563 Water Enterprise 165,557,763 163,568,704 (1,989,059) -1.20% 560, 563 Water Enterprise 170,357,991 165,557,763 (4,800,228) -2.82%

CAPITAL PROJECT FUNDS ALL OTHER NON-MAJOR FUNDS
592 Wastewater Improvements 9,764,745 8,330,767 (1,433,978) -14.69% xxx All Other Non-Major Funds 391,747,264 367,057,283 (24,689,981) -6.30%

ALL OTHER NON-MAJOR FUNDS
xxx All Other Non-Major Funds 399,666,975 355,406,311 (44,260,664) -11.07%

70 2026/27 – 2027/28 Operating Budget
FY 2026/27 GENERAL FUND REVENUE BY CATEGORY
$84.7 Million

71 2026/27 – 2027/28 Operating Budget

GENERAL FUND REVENUE SUMMARY
2024/25 2025/26 2025/26 2026/27 2027/28
Actual Budget Projected Budget % Change Budget % Change Taxes and Fines $ 31,803,242 $ 34,058,653 $ 34,257,523 $ 34,728,521 1.97% $ 35,672,731 2.72% Use of Money and Property 2,352,591 1,120,869 1,177,254 1,186,210 5.83% 1,115,459 -5.96% Community Development 2,856,314 3,418,643 3,641,483 4,223,339 23.54% 3,917,122 -7.25% Engineering 2,569,688 3,098,917 2,580,298 1,971,098 -36.39% 3,045,293 54.50% Parks and Recreation 5,464,219 5,503,842 5,585,078 6,053,394 9.98% 6,479,927 7.05% Intergovernmental Agencies 6,728,825 6,896,504 7,032,475 7,168,505 3.94% 7,365,065 2.74% Current Services 384,407 317,887 321,937 330,756 4.05% 338,286 2.28% Charges for Services 9,844,747 10,205,648 10,194,962 10,754,058 5.37% 11,071,054 2.95% Other Revenue 1,454,376 530,401 1,432,454 476,450 -10.17% 486,450 2.10% Transfers In 11,589,239 15,512,123 12,495,371 17,793,219 14.71% 18,474,303 3.83% TOTAL GENERAL FUND REVENUE $ 75,047,648 $ 80,663,487 $ 78,718,835 $ 84,685,550 $ 87,965,690 Annual Percentage Change 4.89% 4.99% 3.87%

72 2026/27 – 2027/28 Operating Budget

GENERAL FUND SCHEDULE OF INTERFUND TRANSFERS IN
2025/26 2026/27 2027/28
From Fund Purpose Projected Budget Budget
Gas Tax Street Operations $ 1,789,845 $ 1,914,544 $ 1,921,402 Community Facilities District #2 Public Safety 726,758 763,616 778,671 Community Facilities District #3 Public Safety 1,512,009 1,660,792 1,613,489 Community Facilities District #4 Public Safety 3,242,698 3,720,576 3,820,649 Community Facilities District #5 Public Safety 3,082,693 3,451,622 3,712,114 Public Art Acquisition Art Commission 516 726 749
Abandoned Vehicle Abatement Vehicle Abatement 70,000 130,000 130,000 Measure J Street Operations 1,500,000 1,560,000 1,560,000 Community Facility Projects Return of Excess CIP Funding 570,852 0 0 Pension/OPEB Obligation Interest 0 70,000 0
Pension/OPEB Obligation Pension/OPEB Funding Contribution 0 4,521,343 4,937,229 Total Transfers In $ 12,495,371 $ 17,793,219 $ 18,474,303

73 2026/27 – 2027/28 Operating Budget

MAJOR GENERAL FUND RECURRING REVENUE SOURCES
2024/25 % of General 2025/26 % of General 2026/27 % of General 2027/28 % of General Actual Fund Revenue Projected Fund Revenue Budget Fund Revenue Budget Fund Revenue Property Tax $ 16,536,157 22.03% $ 17,197,039 21.85% $ 17,690,002 20.89% $ 18,199,846 20.69% Sales Tax 11,410,844 15.20% 13,385,464 17.00% 13,247,326 15.64% 13,560,497 15.42% Community Facilities District Transfers In 8,268,140 11.02% 8,564,158 10.88% 9,596,606 11.33% 9,924,923 11.28% Motor Vehicle In-Lieu Tax 6,582,011 8.77% 6,844,665 8.70% 7,004,181 8.27% 7,196,116 8.18% Development 5,426,002 7.23% 6,221,781 7.90% 6,194,437 7.31% 6,962,415 7.91% Parks and Recreation Property Tax 3,448,740 4.60% 3,539,861 4.50% 3,609,653 4.26% 3,713,506 4.22% Parks and Recreation Program Fees 1,992,017 2.65% 2,019,846 2.57% 2,415,736 2.85% 2,737,573 3.11% Gas Tax Transfers In 1,862,861 2.48% 1,789,845 2.27% 1,914,544 2.26% 1,921,402 2.18% Franchise Fees 1,711,396 2.28% 1,698,868 2.16% 1,779,675 2.10% 1,866,139 2.12% Major Recurring Revenue Sources
The City of Brentwood has several recurring revenue sources that support the General Fund operational budget. In FY 2026/27, the most significant of these revenue sources, based on the percentage of the total revenue budget, are: 1) Property Tax; 2) Sales Tax; 3) CFD Transfers In; 4) Motor Vehicle In-Lieu Tax; 5) Development; 6) Parks and Recreation Property Tax; 7) Parks and Recreation Program Fees; 8) Gas Tax Transfers In and 9) Franchise Fees. Detailed below are the assumptions used for estimating the major revenue sources for FY 2026/27 and FY 2027/28.

Property Tax
Contra Costa County levies a tax of 1% on the assessed valuation of property within the county. The City of Brentwood receives approximately a 12.1% share of this 1% levy for property located within the City limits. In recent years, the City has had moderate increases in property tax revenues. In FY 2024/25 and FY 2025/26, the City’s property tax base increased by 4.0% each year. These increases were a result of modest increases in property values combined with a historically slower rate of new development.

74 2026/27 – 2027/28 Operating Budget
Property tax revenues are expected to increase from $252 per capita in FY 2024/25 to $268 per capita in the FY 2027/28 budget. The FY 2026/27 estimate of property tax revenue of $17.7 million represents 20.9% of General Fund revenues and is a 2.9% increase from FY 2025/26 projection.

This conservative estimate expects that housing values will remain relatively stable.

The budgeted revenues for FY 2026/27 and FY 2027/28 are based on the estimates of new housing and non-residential development, increased taxable values from turnover during the year and by the change in California Consumer Price Index (CPI) of 2%.

Typically, locally assessed real property subject to taxation is adjusted each year by 2% as noted in Proposition 13. This increase was compared to estimates from the City’s property tax revenue consultant’s projections for FY 2026/27 and FY 2027/28 for reasonableness.

A comparison of the City’s General Fund property tax per capita revenue to other local cities has been included to provide further understanding of the City’s revenue base and its ability to provide services to the City’s residents. The comparable cities were selected from neighboring counties, based on available data from the City’s property tax consultant.

Every city receives a different percentage of each property tax dollar levied by the county. This fact, along with differing property values and land use, can cause significant variances in the per capita property tax amount among cities (e.g.

Pleasanton has significant office and commercial property tax revenues which raise their per capita receipts). The chart to the right demonstrates that Brentwood receives less property tax revenue per capita than the average for comparison cities.

It should be noted that services provided by each city can vary (e.g. fire, library, animal services) and may impact allocations.

City 1/1/2025
Population
2025/26 Est.

Revenue Per
Capita
Pleasanton 77,232 $ 1,084.11
Benicia 26,195 776.33
Dublin 74,691 772.20
Livermore 85,899 567.42
Martinez 36,817 338.41
Walnut Creek 69,927 337.14
Danville 42,960 331.32
Union City 66,657 284.52
Brentwood (1) 65,747 261.56
Vacaville 103,181 256.49
San Ramon 83,391 254.21
Tracy 98,215 217.43
Vallejo 122,207 212.46
Fairfield 120,720 176.14
Concord 122,650 172.20
Antioch 116,781 146.42
Stockton 320,877 140.80
Pleasant Hill 33,601 133.04
Oakley 46,826 95.65
Pittsburg 76,374 60.06
Average Comparison City 89,547 $ 330.90

PROPERTY TAX
(1) Excludes payments received from the county for the Agency's share of the Redevelopment Property Tax Trust Fund residual distribution.

75 2026/27 – 2027/28 Operating Budget
Sales Tax
Sales tax revenue is the General Fund’s second largest individual revenue source and varies depending upon economic conditions and activity.

The City of Brentwood receives a 1% share of all taxable sales generated within its borders. In addition to this 1% share, the City receives a small portion of an additional, statewide voter-approved 1/2% sales tax amount which is dedicated for public safety purposes.

Excluding public safety, the FY 2026/27 sales tax budget is $13.2 million and represents 15.6% of General Fund revenues. This amount reflects a 1.0% decrease from the FY 2025/26 projected revenue. In March of FY 2024/25, a new Costco location opened; however, the associated sales tax was not properly allocated to the City by the State. In FY 2025/26, the correction of this misallocation resulted in a significant one-time catch-up payment, which inflated revenues for that year. The FY 2027/28 budget reflects a moderate 2.4% increase over the FY 2026/27 budget.

Prior to the addition of the Costco location, average annual sales tax growth was approximately

1.0% from FY 2021/22 through FY 2023/24, following a period of high inflation that weakened consumer demand. This represents a slowdown from the historical average annual growth rate of 2.75% during the five fiscal years preceding FY 2021/22. The FY 2026/27 and FY 2027/28 budgets reflect a higher
baseline in part due to the
addition of the new Costco
location, with modest growth
projected in each year.

The sales tax revenue
budgets for FY 2026/27 and
FY 2027/28 were compared to estimates from the City’s sales tax revenue consultants for reasonableness. The multi-city comparison of calendar year 2025 sales tax revenue, shown above, illustrates the City has room for additional economic development to increase per capita revenue. Due to delays in correct allocation reporting for the new Costco location, the City’s calendar year 2025 data does not include any Costco revenue. It is anticipated the City’s ranking will move up in future comparisons.

City 1/1/2025
Population
2025 Calendar
Revenue Per
Capita
Tracy 98,215 $ 847.99
Livermore 85,899 354.24
Walnut Creek 69,927 349.84
Dublin 74,691 303.11
Pleasanton 77,232 283.14
Concord 122,650 265.83
Pleasant Hill 33,601 259.03
Vacaville 103,181 228.05
Fairfield 120,720 217.82
Benicia 26,195 214.45
Stockton 320,877 205.03
Brentwood 65,747 147.98
Union City 66,657 144.06
San Ramon 83,391 133.15
Danville 42,960 129.36
Pittsburg 76,374 128.49
Vallejo 122,207 124.83
Martinez 36,817 123.35
Antioch 116,781 118.67
Oakley 46,826 48.20
Average Comparison City 89,547 $ 231.33

SALES TAX

76 2026/27 – 2027/28 Operating Budget
Community Facilities District Transfers In
All new developments in the City are required to be included in a CFD. The City uses a Special Revenue Fund to account for special benefit taxes levied on property owners within the CFD. CFD special tax revenue is restricted to the following allowable uses: public safety services; joint use school facilities; community facilities; and construction, acquisition and maintenance of open spaces, flood drains and storm drains. On an annual basis, the City transfers the majority of this revenue to the General Fund to fund public safety services.

Budgeted growth in this revenue source is driven by new development in the City combined with an annual inflation increase (approximately 2%) in existing CFD special tax rates. CFD special taxes are levied on parcels for which a building permit has been issued before January 1 of the prior fiscal year. This timing results in a lag between permit issuance and the generation of CFD revenue. Revenue budgets are based on the previous fiscal year’s budgeted revenue, plus revenue generated from estimates of the new taxable parcels that will be added in the year. For FY 2026/27 and FY 2027/28, new taxable parcel assumptions are based on FY 2024/25 actual permit activity and FY 2025/26 budgeted permits, respectively.

77 2026/27 – 2027/28 Operating Budget
Motor Vehicle In-Lieu Tax
The State Revenue and Taxation code imposes an annual license fee of 0.65% of the market value of motor vehicles in-lieu of a local motor vehicle property tax. Additionally, the City receives Property Tax In-Lieu of Vehicle License Fee (VLF) revenue which is considered Motor Vehicle In-Lieu Tax revenue for reporting purposes and makes up the majority of this revenue category.

As a result of the State Budget Act of 2014, allocation of the Motor Vehicle In-Lieu Tax is driven by the change in the City’s property tax values, not by population. Due to increases in the City’s assessed valuations, revenue from the Motor Vehicle In-Lieu Tax has increased an average of 5.1% per year from FY 2023/24 through FY 2025/26. The budget for FY 2026/27 includes a 2.3% increase in revenue to a total of $7.0 million, followed by an increase in FY 2027/28 of 2.7% to $7.2 million. These increases are based on the analysis utilized in projecting property tax, discussed in the Property Tax section above.

Development Revenue
Development fees are collected to offset the cost of inspection; plan retention and review; record keeping; materials investigation; special inspection management and overhead of the Building, Planning and Engineering divisions. The largest sources of development revenue for FY 2026/27 and FY 2027/28 are building permits, building plan check fees, engineering inspection fees and project administration. There were 57 single-family and no multi-family residential permits issued in FY 2023/24 and 51 single-family and no multi-family residential permits issued in FY 2024/25. In FY 2025/26, a total of 142 singlefamily and no multi-family permits are expected to be issued by yearend. Projected revenue of $6.2 million for FY 2026/27 is based on new development estimates of 175 single-family residential, 100 multifamily residential and 75,000 square feet of commercial, office and industrial permits. Revenue projections of $7.0 million in FY 2027/28 is based on 125 single-family residential, 200 multi-family residential and 75,000 square feet of commercial, office and industrial permits.

78 2026/27 – 2027/28 Operating Budget
In addition to estimated revenues for permits issued for new development, estimated revenues from all other permits and services provided by the Building, Planning and Engineering divisions are included in the budget.

Parks and Recreation Property Tax
Contra Costa County levies a tax of 1% on the assessed valuation of property within the county. The City of Brentwood Parks and Recreation Department receives approximately 2.4% of the 1% levy for property located within the City limits. These revenues are used to support the Parks and Recreation Department programs and services. The FY 2026/27 budget of $3.6 million and FY 2027/28 budget of $3.7 million represent

4.3% and 4.2% of General Fund total revenue, respectively. The budgeted amounts for Parks and Recreation property taxes are estimated consistent with the analysis utilized in projecting property tax, discussed in the Property Tax section above.

Parks and Recreation Program Fees
The Parks and Recreation department offers a variety of sports and recreation programs and rental of various parks facilities. Fees are collected for facility rental and programs according to a cost recovery policy set by the City Council. The budget for program fees for FY 2026/27 is expected to be $2.4 million and includes revenue from the new Sand Creek Sports Complex (SCSC), planned to be operational halfway through the fiscal year. The FY 2027/28 budget increases by

13.3%, to $2.7 million, and assumes a full year of operations for the SCSC.

79 2026/27 – 2027/28 Operating Budget
Gas Tax Transfers In
The State of California imposes a tax on motor vehicle and aircraft fuel, with a portion of these funds being allocated to cities to help fund street improvements and maintenance. These funds are commonly referred to as “Gas Tax” revenues. The City transfers Gas Tax revenues into the General Fund to support street maintenance.

The FY 2025/26 revenue estimate of $1.8 million and the budget of $1.9 million for both FY 2026/27 and FY 2027/28 are all based on projections provided by the California Local Government Finance Almanac (CLGFA).

Additional taxes collected under the authority of SB 1 – Road Maintenance and Rehabilitation Account (RMRA) will be used to directly fund road maintenance capital projects and are not currently budgeted as a revenue source for the General Fund.

Franchise Fees
The City charges local wireless, cable, telephone and electric utilities for their use of City owned streets and right-of-way. Franchise fees have posted minimal average annual increases of 1.0% from FY 2023/24 through FY 2025/26 due to cord-cutting and transitions to digital media. Revenues for FY 2026/27 and FY 2027/28 are budgeted to increase 4.8% and 4.9% per year, respectively. In general, franchise fee revenue budgets are estimated based on an analysis of existing contracts, changes to the terms expected in the budget period, and the effects on revenue of service demand trends, development and population growth.

80 2026/27 – 2027/28 Operating Budget

OTHER CITY REVENUE SOURCES
Solid Waste User Fees
Charges for Solid Waste Enterprise services provided by the City are set in accordance with Proposition 218 and are required to be sufficient to cover the necessary operating expenses and capital improvements costs of the Enterprise. Five-year rate studies are developed that include the future enterprise operating expenditures and capital budgets. City Council's approval of the enterprise rates for the five-year period provide the basis for the Solid Waste revenue budget.

Water User Fees
Charges for Water Enterprise services provided by the City are set in accordance with Proposition 218 and are required to be sufficient to cover the necessary operating expenses, debt service and capital improvements costs of the Enterprises. Five-year rate studies are developed that include the future enterprise operating expenditures, debt and capital budgets. City Council's approval of the enterprise rates for the five-year period provide the basis for the Water revenue budget.

81 2026/27 – 2027/28 Operating Budget
Wastewater User Fees
Charges for Wastewater Enterprise services provided by the City are set in accordance with Proposition 218 and are required to be sufficient to cover the necessary operating expenses, debt service and capital improvements costs of the Enterprises. Five-year rate studies are developed that include the future enterprise operating expenditures and capital budgets. City Council's approval of the enterprise rates for the five-year period provide the basis for the Wastewater revenue budget.

82 2026/27 – 2027/28 Operating Budget
Development Impact Fee Revenue
Water, Wastewater, Roadway, Community Facilities, and Parks and Trails development impact fees are collected for all new development in the City of Brentwood. These fees are collected for the purpose of constructing or expanding Master Planned City infrastructure. The current Development Impact Fee Program was adopted in 2021.

The budgeted revenue of $11.2 million in FY 2026/27 and $12.3 million in FY 2027/28, is calculated based on the estimated number of singlefamily and multi-family dwelling units and commercial/office/industrial development permits projected to be issued in the respective fiscal years.

Building Permit Projections
Growth within the City is a major factor in determining future General Fund revenue, as virtually all of the largest General Fund revenue sources are impacted by development. Revenue is impacted directly through permit fees, or indirectly from a larger property and sales tax base from which to support operations and capital projects. Development impact fee revenue is also directly related to the volume of development within the City. The following permit projections represent currently known development projects. As future projects are identified, annual permit projections will be updated.

Fiscal Year 2021/22 2022/23 2023/24 2024/25 2025/26
Projected
2026/27
Budget
2027/28
Budget
Single-Family Units Per Year 326 76 57 51 142 175 125
Multi-Family Units Per Year 358 0 0 3 0 100 200
Sq. Ft. Per Year (1) 46,461 17,865 16,056 174,864 69,370 75,000 75,000 (1) Sq. Ft. refers to the square footage of Commercial, Office and Industrial development.

Building Permits

83 2026/27 – 2027/28 Operating Budget
FY 2026/27 CITYWIDE REVENUE BY FUND TYPE
$311.5 Million

84 2026/27 – 2027/28 Operating Budget

REVENUE SUMMARY BY FUND
2024/25 2025/26 2025/26 2026/27 Budget 2027/28 Budget
Fund # Fund Name Actual Budget Projected Budget % Change Budget % Change

GENERAL FUND
100 General Fund $ 75,047,648 $ 80,663,487 $ 78,718,835 $ 84,685,550 4.99% $ 87,965,690 3.87% Total General Fund 75,047,648 80,663,487 78,718,835 84,685,550 4.99% 87,965,690 3.87%

ENTERPRISE FUNDS
540,543 Solid Waste Enterprise 21,369,352 21,318,928 21,246,608 22,453,951 5.32% 23,407,246 4.25% 560,563 Water Enterprise 45,016,372 34,511,552 32,183,914 35,147,381 1.84% 37,506,007 6.71% 590,593 Wastewater Enterprise 32,280,649 18,458,645 20,050,214 19,333,337 4.74% 19,992,613 3.41% 510,511,513 Housing Enterprise 1,304,590 1,285,558 1,296,793 1,386,688 7.87% 1,414,061 1.97% Total Enterprise Funds 99,970,963 75,574,683 74,777,529 78,321,357 3.63% 82,319,927 5.11%

INTERNAL SERVICE FUNDS
701 Information Systems 4,332,357 4,543,359 4,542,130 4,997,803 10.00% 5,285,201 5.75% 702 Vehicle and Equipment Replacement 5,177,208 2,444,599 2,476,477 3,262,791 33.47% 3,244,965 -0.55% 703 Information Systems Replacement 1,435,213 925,303 1,039,384 1,053,423 13.85% 1,026,219 -2.58% 704 Facilities Replacement 1,736,372 1,438,431 1,530,271 1,584,273 10.14% 1,601,138 1.06% 705 Tuition 19,569 16,782 17,887 17,827 6.23% 17,163 -3.72% 706 Fleet Maintenance Services 2,673,520 2,645,849 2,670,167 2,899,722 9.60% 3,248,386 12.02% 707 Facilities Maintenance Services 2,140,391 2,199,456 2,183,174 1,923,481 -12.55% 1,994,679 3.70% 708 Parks and LLAD Replacement 3,472,445 1,784,242 1,789,063 2,425,378 35.93% 1,848,523 -23.78% 709 Insurance 4,127,121 3,979,667 3,979,676 3,119,454 -21.62% 3,218,844 3.19% 710 Pension/OPEB Obligation 5,923,966 4,468,536 5,034,249 3,498,315 -21.71% 3,268,244 -6.58% Total Internal Service Funds 31,038,162 24,446,224 25,262,478 24,782,467 1.38% 24,753,362 -0.12%

85 2026/27 – 2027/28 Operating Budget
REVENUE SUMMARY BY FUND (continued)
2024/25 2025/26 2025/26 2026/27 Budget 2027/28 Budget
Fund # Fund Name Actual Budget Projected Budget % Change Budget % Change

SPECIAL REVENUE FUNDS
203-209 Gas Tax $ 4,414,438 $ 3,545,054 $ 3,784,700 $ 3,862,614 8.96% $ 3,890,555 0.72% 214 SB1186 Disability Access 32,231 27,512 32,449 30,837 12.09% 31,188 1.14% 216 Police Grants 339,170 458,482 626,728 412,250 -10.08% 412,188 -0.02% 217 Grants 678,038 2,783,042 143,973 789,353 -71.64% 226,950 -71.25% 219 Economic Development Grant 228,976 216,609 239,475 245,547 13.36% 249,178 1.48% 230 Citywide Park Assessment District 8,053,241 8,092,520 8,257,214 7,823,532 -3.32% 8,038,473 2.75% 231 Community Facilities District #2 725,246 743,384 739,532 753,632 1.38% 768,301 1.95% 232 Community Facilities District #3 2,417,061 2,435,745 2,437,763 2,409,976 -1.06% 2,365,355 -1.85% 233,235 Community Facilities District #4 3,379,019 3,491,709 3,484,208 3,579,198 2.51% 3,675,404 2.69% 234 Community Facilities District #5 3,040,685 3,181,931 3,166,154 3,283,652 3.20% 3,539,913 7.80% 250 Water Development Impact Fee 2,406,045 2,321,187 2,882,812 3,422,774 47.46% 3,287,403 -3.96% 251 Roadway Development Impact Fee 2,697,176 2,224,687 2,836,681 3,587,899 61.28% 3,895,784 8.58% 252 Parks and Trails Development Impact Fee 1,333,783 1,746,830 1,663,304 2,727,375 56.13% 3,264,513 19.69% 255 Wastewater Development Impact Fee 1,517,279 1,262,122 1,399,585 2,109,143 67.11% 2,297,640 8.94% 256 Community Facilities Development Impact Fee 46,441 130,596 121,459 204,424 56.53% 216,230 5.78% 261 Development Impact Fee Administration 128,136 161,072 174,388 242,631 50.64% 257,653 6.19% 262 Agriculture Land Administration 117,794 18,839 80,983 27,425 45.58% 22,993 -16.16% 263 Agriculture Land Acquisition 489,489 80,788 339,623 61,486 -23.89% 56,723 -7.75% 264 First-Time Homebuyer 87,614 35,750 41,765 52,500 46.85% 48,750 -7.14% 265 Affordable Housing In-Lieu Fee 188,750 87,750 91,407 101,500 15.67% 68,250 -32.76% 267 Public Art Administration 87,887 31,805 78,603 38,935 22.42% 37,279 -4.25% 268 Public Art Acquisition 298,018 98,597 281,641 116,094 17.75% 111,319 -4.11% 269 Parking In-Lieu 24 44 15 16 -63.64% 15 -6.25%
272 Riparian Mitigation Site Maintenance 4,096 2,200 3,236 2,800 27.27% 2,600 -7.14% 280 Asset Forfeiture 8,768 338 849 601 77.81% 585 -2.66% 281 Abandoned Vehicle Abatement 52,374 45,186 47,903 47,000 4.01% 43,250 -7.98% 285 PEG Media 35,009 15,441 21,092 24,057 55.80% 23,112 -3.93% 293 Measure J 1,371,465 1,301,709 1,377,137 1,398,532 7.44% 1,413,854 1.10% 302 City Low Income Housing 607 413 670 350 -15.25% 325 -7.14% 6xx Landscape and Lighting Assessment Districts 29,550,721 31,306,972 31,499,923 30,137,275 -3.74% 28,727,637 -4.68% Total Special Revenue Funds 63,729,581 65,848,314 65,855,272 67,493,408 2.50% 66,973,420 -0.77%

86 2026/27 – 2027/28 Operating Budget
REVENUE SUMMARY BY FUND (continued)
2024/25 2025/26 2025/26 2026/27 Budget 2027/28 Budget
Fund # Fund Name Actual Budget Projected Budget % Change Budget % Change

DEBT SERVICE FUNDS
445 Capital Improvement Revenue Refunding Bonds Series 2021 A & B $ 1,121,265 $ 2,049,204 $ 2,050,440 $ 2,070,520 1.04% $ 1,742,445 -15.85% 448 General Obligation Bonds Series 2002 681,001 725,007 711,807 760,853 4.94% 799,614 5.09% 461 2019 Civic Center Project Lease Revenue Refunding Bonds 3,043,114 3,425,007 3,424,169 3,345,127 -2.33% 3,242,460 -3.07% 466 2015 Lease Financing 790,294 792,116 787,388 789,313 -0.35% 790,138 0.10% Total Debt Service Funds 5,635,674 6,991,334 6,973,804 6,965,813 -0.37% 6,574,657 -5.62%

CAPITAL PROJECT FUNDS
336 Roadway Improvements 9,524,951 9,282,464 7,207,437 5,115,124 -44.89% 19,584,321 282.87% 337 Community Facilities Improvements 1,206,241 3,274,899 2,072,755 3,729,253 13.87% 1,721,619 -53.83% 352 Parks and Trails Improvements 6,534,971 2,001,178 2,001,178 1,955,361 -2.29% 2,052,250 4.96% 380 Civic Center Capital Improvement Financing Program 1,190,199 1,179,314 1,179,121 1,107,780 -6.07% 1,009,325 -8.89% 381 City Capital Improvement Financing Program 1,000,646 841,624 910,797 971,083 15.38% 1,030,639 6.13% 392 Capital Infrastructure 631,962 0 567,234 58,665 100.00% 19,841 -66.18% 393 Vineyards Projects 432,195 0 391,107 304,500 100.00% 139,750 -54.11% 542 Solid Waste Improvements 259,150 1,010,000 1,010,000 400,000 -60.40% 1,700,000 325.00% 562 Water Improvements 4,737,172 16,022,448 15,217,047 3,504,000 -78.13% 1,702,000 -51.43% 592 Wastewater Improvements 7,399,436 31,200,000 18,929,658 32,100,000 2.88% 180,000 -99.44% Total Capital Project Funds 32,916,923 64,811,927 49,486,334 49,245,766 -24.02% 29,139,745 -40.83% TOTAL FUNDS $ 308,338,951 $ 318,335,969 $ 301,074,252 $ 311,494,361 -2.15% $ 297,726,801 -4.42%

87 2026/27 – 2027/28 Operating Budget
FY 2026/27 GENERAL FUND EXPENDITURE SUMMARY
$84.9 Million

88 2026/27 – 2027/28 Operating Budget

GENERAL FUND EXPENDITURE SUMMARY
2024/25 2025/26 2025/26 2026/27 Budget 2027/28 Budget
Actual Budget Projected Budget % Change Budget % Change Legislative $ 432,266 $ 516,805 $ 406,742 $ 528,698 2.30% $ 543,275 2.76% City Manager 2,884,337 3,500,184 2,813,078 3,575,171 2.14% 3,387,488 -5.25% City Attorney 1,708,577 2,535,298 2,076,999 2,454,896 -3.17% 2,567,783 4.60% Community Development 5,498,891 6,984,045 6,004,606 6,670,322 -4.49% 6,833,222 2.44% Engineering 3,978,922 4,746,085 4,161,133 4,540,027 -4.34% 4,734,940 4.29% Finance and Information Systems 3,030,702 3,280,409 3,202,988 3,340,353 1.83% 3,478,209 4.13% Human Resources 1,917,946 2,426,335 2,336,659 2,548,200 5.02% 2,611,283 2.48% Parks and Recreation 9,030,843 10,595,954 9,956,722 10,679,607 0.79% 11,281,756 5.64% Police Department 32,522,083 36,061,474 34,324,094 37,308,474 3.46% 38,919,457 4.32% Streets 4,431,728 5,221,550 4,837,831 5,572,317 6.72% 5,840,160 4.81% Successor Agency 1,682,821 838,436 824,328 14,107 -98.32% 0 -100.00% Community Services 1,273,540 1,386,098 1,372,443 1,543,645 11.37% 1,584,852 2.67% Non-Departmental 937,909 1,100,304 1,062,083 1,332,311 21.09% 1,365,798 2.51% Transfers Out 5,716,718 4,329,612 4,471,269 4,768,805 10.14% 3,327,929 -30.21% TOTAL GENERAL FUND EXPENDITURES $ 75,047,283 $ 83,522,589 $ 77,850,975 $ 84,876,933 $ 86,476,152 Annual Percentage Change 3.74% 1.62% 1.88%

89 2026/27 – 2027/28 Operating Budget

GENERAL FUND SCHEDULE OF INTERFUND TRANSFERS OUT
2025/26 2026/27 2027/28
To Fund Purpose Projected Budget Budget
Transfers Out
Roadway Improvements Countywide Smart Signals $ 228,393 $ 0 $ 0 Roadway Improvements Pavement Management Program 1,110,596 1,146,914 1,184,321 Community Facilities Improvements Comprehensive General Plan Update 0 1,350,000 0 Community Facilities Improvements Corporation Yard Security Improvements 0 60,990 0 Community Facilities Improvements Fleet Electrification 199,901 0 0 Community Facilities Improvements Hydrodynamic Separator at Marsh Creek 0 100,000 0 Parks and Trails Improvements Basketball Court Lighting – Homecoming & Windsor Parks 327,400 0 0 Parks and Trails Improvements Sand Creek Sports Complex 0 45,420 0 Parks and Trails Improvements Trail Pavement Management Program 100,000 100,000 100,000 Parks and LLAD Transfers Contribution to Citywide Parks and LLADs 2,187,215 1,965,481 2,043,608 Pension/OPEB Obligation Anticipated Excess Fund Balance 317,764 0 0 Total Transfers Out $ 4,471,269 $ 4,768,805 $ 3,327,929

90 2026/27 – 2027/28 Operating Budget

GENERAL FUND EXPENDITURES BY CATEGORY
2024/25 2025/26 2025/26 2026/27 2027/28
Actual Budget Projected Budget % Change Budget % Change Personnel Services $ 44,290,895 $ 51,475,558 $ 47,595,353 $ 53,422,355 3.78% $ 56,142,289 5.09% Supplies and Services 11,079,873 14,647,777 12,842,313 14,519,370 -0.88% 14,674,715 1.07% Internal Services 12,035,983 12,053,922 12,053,922 11,982,302 -0.59% 12,317,176 2.79% Capital Outlay 1,923,814 1,015,720 888,118 184,101 -81.87% 14,043 -92.37% SUBTOTAL GENERAL FUND OPERATIONS 69,330,565 79,192,977 73,379,706 80,108,128 1.16% 83,148,223 3.79% Transfers Out 5,716,718 4,329,612 4,471,269 4,768,805 10.14% 3,327,929 -30.21% TOTAL GENERAL FUND EXPENDITURES $ 75,047,283 $ 83,522,589 $ 77,850,975 $ 84,876,933 $ 86,476,152 Annual Percentage Change 3.74% 1.62% 1.88%
Total General Fund Budgeted Employee Allocation 215.23 215.23 215.23 215.73 215.73 Total General Fund Elected and Appointed Positions 30.00 30.00 30.00 30.00 30.00

91 2026/27 – 2027/28 Operating Budget

GENERAL FUND EXPENDITURES
Personnel Services
Including transfers out of $1.9 million for retiree medical benefits, personnel expenditures comprise the majority of General Fund appropriations, representing approximately 67% of General Fund operating expenses by FY 2027/28. Total budgeted personnel expenditures for FY 2026/27 are $53.4 million, a 3.8% increase from the FY 2025/26 budget of $51.5 million. The increase is due to a combination of a cost of living increase of 3%, health insurance inflation, growing annual pension contributions and higher demand for part-time staffing. In FY 2027/28, personnel expenditures increase to $56.1 million, or 5.1%, due to a placeholder cost of living increase, and anticipated increases to health insurance costs and pension contributions.

As illustrated in the chart on the left, personnel costs will increase in the upcoming two budget years. FY 2025/26 projected personnel costs are substantially below the budgeted amount, mainly due to personnel vacancies. Although five Police Officer positions were authorized in FY 2021/22 to form a new 5th geographic beat, these positions have not yet been filled and additional Police department vacancies have resulted in significant budget savings. Turnover and retirements in other departments have added to the projected vacancy savings.

For FY 2026/27, one regular part-time Administrative Assistant I/II position has been added to support the Human Resources division’s increased administrative needs from growth in the City’s workforce.

92 2026/27 – 2027/28 Operating Budget
Supplies and Services
The FY 2026/27 budget for supplies and services decreased by 1.0% from the FY 2025/26 budget. This modest change primarily reflects tighter adjustments to better align budgeted amounts with expected costs. Key reductions from FY 2025/26 include $273,000 in carryover Strategic Initiative costs and lower contractual services expenditures. These decreases are partially offset by increased costs associated with the November 2026 election.

In FY 2027/28, the supplies and services budget increases by $0.2 million (1.1%). While utilities and other inflationary cost pressures contribute to this increase, they are partially offset by a $172,000 reduction in carryover Strategic Initiative costs and the absence of one-time election expenses.

Internal Services
Internal Services costs of $12.0 million are budgeted for FY 2026/27, representing a 0.6% decrease from the FY 2025/26 budget of $12.1 million. This decrease is primarily attributable to lower general liability insurance costs, reduced OPEB expenditures, and decreased allocations for fleet and facilities maintenance. These savings are partially offset by increased allocations for information systems and equipment replacement.

In FY 2027/28, Internal Services costs are projected to increase by

2.8%, driven mainly by higher expenditures for information systems, facilities maintenance, and insurance.

93 2026/27 – 2027/28 Operating Budget
Total General Fund Expenditures
Total General Fund expenditures presented in the accompanying chart include personnel services, supplies and services and internal services, as well as operational transfers. Non-operating transfers, including funding for CIP projects, are not included in these totals, as the variation from one year to the next would diminish any
value derived from analyzing the trends.

Total expenditures on a per capita basis will
increase from the FY 2025/26 projected actual
of $1,158 to $1,242 per capita in FY
2026/27. This increase over FY 2025/26
projected actual is due primarily to personnel
expenditure increases. Personnel costs are
rising from cost of living, health insurance and
annual pension contributions increases. In
addition, supplies and services costs will
increase in FY 2026/27 due mainly to higher
contractual services and utilities costs. In FY
2027/28, the per capita cost increase is driven
by higher personnel costs (annual cost of living
and benefit cost increases); CPI increases in
supplies and services; internal services costs up
from the rising cost of information systems and
facilities maintenance; offset by decreases from
completion of carryover Strategic Initiatives in
the prior year.

94 2026/27 – 2027/28 Operating Budget
FY 2026/27 CITYWIDE EXPENDITURES BY FUND TYPE
$366.4 Million

95 2026/27 – 2027/28 Operating Budget

CITYWIDE EXPENDITURES
The table below is a summary of the City’s expenditures by fund type. General Fund expenditures are discussed in detail beginning on page

91. The expenditure decrease in the Enterprise Funds in FY 2025/26 is due to decreases in funding of Water and Wastewater capital projects.

The expenditure increase in the Enterprise Funds in FY 2026/27 is primarily due to one-time capital costs associated with the implementation of enhanced Solid Waste organic waste collection services.

FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
Actual Projected Budget Budget
General Fund $ 75,047,283 $ 77,850,975 $ 84,876,933 $ 86,476,152 Enterprise Funds 91,829,658 90,292,889 90,474,321 87,667,626 Internal Service Funds 24,345,208 29,710,753 37,177,180 34,635,863 Special Revenue Funds 68,122,401 70,564,294 64,527,322 62,624,347 Debt Service Funds 6,973,143 7,014,321 6,982,871 6,606,496 Capital Project Funds 32,459,484 51,460,533 82,383,975 44,905,819 Total Expenditures $ 298,777,177 $ 326,893,765 $ 366,422,602 $ 322,916,303 Several of the City’s Internal Service funds accumulate resources for replacement of City assets and expenditures can vary greatly from year to year due to the timing of the City’s replacement needs. The increase in projected expenditures in FY 2025/26 is due primarily to higher levels of vehicle and equipment replacement purchases and facilities replacement projects. The increase in FY 2026/27 is primarily due to increases in vehicle and equipment and facilities replacements and a budgeted transfer from the Pension/OPEB Obligation Fund to the General Fund for budget stabilization. Internal Service Fund expenditures decrease in FY 2027/28 mainly due to decreases in facilities replacement projects, partially offset by increases in vehicle and equipment replacements.

Special Revenue Funds, in total, are projected to show declines in budgeted expenses in each of the next two fiscal years. Within the Special Revenue Fund category, the Citywide Park Assessment District and Landscape and Lighting Assessment Districts are showing budget expenditure increases in FY 2026/27 due to higher utility costs and maintenance costs for new infrastructure. In addition, various grant funds and Development Impact Fee funds are considered Special Revenue Funds. Grant funding is variable and dependent upon timing of projects receiving grant funding. Development Impact Fee revenues are collected to pay for the infrastructure capital projects necessary from growth and development. As the timing of funding capital projects varies, the Development Impact Fee funds show large decreases in expenditures in FY 2026/27 due to the timing of funding of capital projects.

96 2026/27 – 2027/28 Operating Budget
Expenditures in the Capital Project Funds are highly variable from one year to the next, depending upon the volume and type of projects currently under construction. For example, the FY 2026/27 budget includes $25.0 million for the Wastewater Treatment Plant Expansion – Phase II project, $16.5 million for various water improvement projects, $11.5 million for various roadway improvement projects and $9.8 million for the Sand Creek Sports Complex project. FY 2027/28 budget includes $10.1 million for the Lone Tree Way Roadway Improvement project, $8.0 million for the Lone Tree Way – Union Pacific At-Grade Crossing project, $9.0 million for the Vineyards at Marsh Creek – Theater/Event Center/Amphitheater Phase I project, $7.2 million for various water improvement projects and $5.0 million for the Wastewater Treatment Plant Expansion – Phase II project.

97 2026/27 – 2027/28 Operating Budget

EXPENDITURE SUMMARY BY FUND
2024/25 2025/26 2025/26 2026/27 Budget 2027/28 Budget
Fund # Fund Name Actual Budget Projected Budget % Change Budget % Change

GENERAL FUND
100 General Fund $ 75,047,283 $ 83,522,589 $ 77,850,975 $ 84,876,933 1.62% $ 86,476,152 1.88% Total General Fund 75,047,283 83,522,589 77,850,975 84,876,933 1.62% 86,476,152 1.88%

ENTERPRISE FUNDS
540,543 Solid Waste Enterprise 18,442,011 23,308,311 20,840,481 26,695,939 14.53% 24,631,688 -7.73% 560,563 Water Enterprise 39,907,172 42,336,864 40,294,468 39,947,609 -5.64% 39,495,066 -1.13% 590,593 Wastewater Enterprise 32,359,916 32,145,979 28,025,193 22,580,025 -29.76% 22,254,574 -1.44% 510,511,513 Housing Enterprise 1,120,559 1,272,633 1,132,747 1,250,748 -1.72% 1,286,298 2.84% Total Enterprise Funds 91,829,658 99,063,787 90,292,889 90,474,321 -8.67% 87,667,626 -3.10%

INTERNAL SERVICE FUNDS
701 Information Systems 4,576,639 5,157,351 4,878,663 5,261,754 2.02% 5,521,193 4.93% 702 Vehicle and Equipment Replacement 2,252,081 5,364,519 5,359,388 6,560,009 22.29% 7,121,324 8.56% 703 Information Systems Replacement 816,217 1,040,031 803,595 1,206,564 16.01% 861,767 -28.58% 704 Facilities Replacement 363,500 1,560,301 1,349,879 4,493,037 187.96% 544,699 -87.88% 705 Tuition 6,715 31,685 16,663 32,310 1.97% 32,370 0.19% 706 Fleet Maintenance Services 2,277,968 2,725,174 2,622,707 3,014,986 10.63% 3,329,956 10.45% 707 Facilities Maintenance Services 1,919,978 2,364,858 2,231,921 2,250,152 -4.85% 2,324,463 3.30% 708 Parks and LLAD Replacement 2,326,852 3,306,635 3,049,822 3,483,039 5.33% 3,642,447 4.58% 709 Insurance 3,663,482 3,979,667 3,480,723 3,519,450 -11.56% 3,618,834 2.82% 710 Pension/OPEB Obligation 6,141,776 9,968,372 5,917,392 7,355,879 -26.21% 7,638,810 3.85% Total Internal Service Funds 24,345,208 35,498,593 29,710,753 37,177,180 4.73% 34,635,863 -6.84%

98 2026/27 – 2027/28 Operating Budget
EXPENDITURE SUMMARY BY FUND (continued)
2024/25 2025/26 2025/26 2026/27 Budget 2027/28 Budget
Fund # Fund Name Actual Budget Projected Budget % Change Budget % Change

SPECIAL REVENUE FUNDS
203-209 Gas Tax $ 3,704,909 $ 3,693,393 $ 3,690,844 $ 3,917,982 6.08% $ 3,924,945 0.18% 214 SB1186 Disability Access 1,230 22,270 1,993 16,000 -28.15% 10,121 -36.74% 216 Police Grants 231,434 515,733 449,360 400,000 -22.44% 400,000 0.00% 217 Grants 482,047 5,209,789 575,695 787,253 -84.89% 225,000 -71.42% 219 Economic Development Grant 207,900 292,925 182,900 258,000 -11.92% 290,000 12.40% 230 Citywide Park Assessment District 7,064,421 7,804,589 6,742,905 7,804,502 0.00% 8,260,329 5.84% 231 Community Facilities District #2 715,437 747,380 734,148 778,644 4.18% 793,693 1.93% 232 Community Facilities District #3 2,381,679 2,461,120 2,412,371 2,574,906 4.62% 2,533,571 -1.61% 233,235 Community Facilities District #4 3,341,528 3,549,859 3,466,406 3,952,612 11.35% 4,054,047 2.57% 234 Community Facilities District #5 3,029,744 3,234,056 3,157,850 3,533,961 9.27% 3,794,822 7.38% 250 Water Development Impact Fee 2,550,121 6,956,268 6,937,432 1,784,721 -74.34% 1,647,606 -7.68% 251 Roadway Development Impact Fee 5,992,863 8,176,812 7,842,801 1,485,737 -81.83% 1,202,572 -19.06% 252 Parks and Trails Development Impact Fee 3,079,231 987,871 982,162 1,000,665 1.30% 749,679 -25.08% 255 Wastewater Development Impact Fee 4,422,489 2,825,210 861,861 2,374,368 -15.96% 2,368,623 -0.24% 256 Community Facilities Development Impact Fee 167,450 173,130 164,451 170,553 -1.49% 153,439 -10.03% 261 Development Impact Fee Administration 250,114 226,521 225,020 201,009 -11.26% 151,071 -24.84% 262 Agriculture Land Administration 63,732 130,021 52,741 140,920 8.38% 47,243 -66.48% 263 Agriculture Land Acquisition 3,251 259,402 64,342 205,386 -20.82% 11,462 -94.42% 264 First-Time Homebuyer 31,120 131,509 130,762 261,189 98.61% 261,256 0.03% 265 Affordable Housing In-Lieu Fee 668,163 825,378 707,869 692,993 -16.04% 721,319 4.09% 267 Public Art Administration 58,214 18,842 18,842 5,882 -68.78% 5,961 1.34% 268 Public Art Acquisition 319,942 16,399 15,300 4,345 -73.50% 4,638 6.74% 269 Parking In-Lieu 0 2 0 0 -100.00% 0 0.00%
272 Riparian Mitigation Site Maintenance 5,516 2,200 2,200 5,584 153.82% 2,600 -53.44% 280 Asset Forfeiture 237 2,000 2,000 2,000 0.00% 2,000 0.00% 281 Abandoned Vehicle Abatement 0 70,000 70,000 130,000 85.71% 130,000 0.00% 285 PEG Media 555 3,770 384 20,545 444.96% 20,596 0.25% 293 Measure J 1,411,460 1,572,469 1,566,147 1,626,589 3.44% 1,626,685 0.01% 302 City Low Income Housing 0 5,000 5,000 5,000 0.00% 5,000 0.00% 6xx Landscape and Lighting Assessment Districts 27,937,614 31,105,870 29,500,508 30,385,976 -2.31% 29,226,069 -3.82% Total Special Revenue Funds 68,122,401 81,019,788 70,564,294 64,527,322 -20.36% 62,624,347 -2.95%

99 2026/27 – 2027/28 Operating Budget
EXPENDITURE SUMMARY BY FUND (continued)
2024/25 2025/26 2025/26 2026/27 Budget 2027/28 Budget
Fund # Fund Name Actual Budget Projected Budget % Change Budget % Change

DEBT SERVICE FUNDS
445 Capital Improvement Revenue Refunding Bonds Series 2021 A & B $ 2,056,026 $ 2,075,315 $ 2,072,990 $ 2,083,369 0.39% $ 1,768,750 -15.10% 448 General Obligation Bonds Series 2002 695,265 730,296 730,295 765,565 4.83% 805,615 5.23% 461 2019 Civic Center Project Lease Revenue Refunding Bonds 3,431,558 3,424,658 3,423,648 3,344,624 -2.34% 3,241,993 -3.07% 466 2015 Lease Financing 790,294 792,113 787,388 789,313 -0.35% 790,138 0.10% Total Debt Service Funds 6,973,143 7,022,382 7,014,321 6,982,871 -0.56% 6,606,496 -5.39%

CAPITAL PROJECT FUNDS
336 Roadway Improvements 8,669,431 17,000,078 10,732,235 11,548,368 -32.07% 11,947,531 3.46% 337 Community Facilities Improvements 635,348 9,494,086 1,379,326 3,708,831 -60.94% 13,212,653 256.25% 352 Parks and Trails Improvements 2,664,710 18,650,439 13,038,011 12,882,976 -30.92% 2,101,250 -83.69% 380 Civic Center Capital Improvement Financing Program 1,184,490 1,184,065 1,183,455 1,108,820 -6.35% 1,010,376 -8.88% 381 City Capital Improvement Financing Program 530,718 834,527 832,816 864,523 3.59% 995,991 15.21% 392 Capital Infrastructure 2,285,454 0 0 750,000 100.00% 0 -100.00% 393 Vineyards Projects 0 0 0 800,000 100.00% 0 -100.00% 542 Solid Waste Improvements 602,275 1,010,000 250,000 650,000 -35.64% 2,000,000 207.69% 562 Water Improvements 5,983,574 21,109,635 3,196,829 16,536,479 -21.66% 7,202,000 -56.45% 592 Wastewater Improvements 9,903,484 34,405,550 20,847,861 33,533,978 -2.53% 6,436,018 -80.81% Total Capital Project Funds 32,459,484 103,688,380 51,460,533 82,383,975 -20.55% 44,905,819 -45.49% TOTAL FUNDS $ 298,777,177 $ 409,815,519 $ 326,893,765 $ 366,422,602 -10.59% $ 322,916,303 -11.87%

100
2026/27 – 2027/28 Operating Budget

INTRODUCTION TO DEPARTMENT AND PERFORMANCE BUDGETS
The City of Brentwood Strategic Plan incorporates six focus areas that represent elements from the City’s General Plan – 1) Public Works; 2) Police Services; 3) Economic Development; 4) Community Development; 5) Parks & Recreation Services and 6) Fiscal Sustainability and Operational Management. The City’s most recent Strategic Plan was adopted by the City Council in February 2022 for FY 2022/23 – 2023/24. Since that time, the City Council has amended and extended the Strategic Plan, most recently in February 2025. While a new Strategic Plan has not yet been formally adopted for FY 2026/27 - 2027/28, the City Manager has identified over 100 high-priority departmental projects and initiatives to be completed in the upcoming two fiscal years and has organized them by Strategic Plan focus area (see Appendix). This is expected to form the framework of the next Strategic Plan.

This Budget includes the funding necessary to complete carryover initiatives from the current 2022/23 – 2023/24 Strategic Plan along with funding for many of the 100 high-priority projects. The department budgets in this section provide status updates on initiatives included in the FY 2022/23 - 2023/24 Strategic Plan and Department Performance Measures that reference applicable Strategic Plan focus areas.

The table below represents the performance budgets funding sources, by City department, for FY 2026/27, as well as the total employee allocation.

Total Employee
Department General Fund Enterprise Special Revenue Internal Service Total Allocation Legislative $ 528,698 $ 0 $ 0 $ 0 $ 528,698 0.50
City Manager 3,575,171 0 0 0 3,575,171 8.50
City Attorney 2,454,896 0 0 0 2,454,896 6.00
Community Development 6,670,322 824,845 0 0 7,495,167 26.00 Engineering 4,540,027 0 0 0 4,540,027 14.07
Finance and Information Systems 3,340,353 3,763,459 0 5,261,754 12,365,566 35.00 Human Resources 2,548,200 0 0 0 2,548,200 7.50
Parks and Recreation 10,678,607 0 3,629,569 0 14,308,176 29.60 Police 37,308,474 0 0 0 37,308,474 107.00
Public Works 5,572,317 82,014,795 0 4,314,887 91,901,999 114.33 Total $ 77,217,065 $ 86,603,099 $ 3,629,569 $ 9,576,641 $ 177,026,374 348.50 Total Employee Allocation 215.73 98.35 9.42 25.00 348.50 2026/27 Fund Type