AGENDA
ITEM
14 AGENDA
CALEXICO California ITEM
WHERE CALIFORNIA AND MEXICO MEET
14 CITY COUNCIL
AGENDA STAFF REPORT
DATE: November 19, 2025
TO: Mayor and City Council
APPROVED BY: Benjamin Martinez, City Manager
PREPARED BY: Karla Chaparro, Finance Director Ye
SUBJECT: 2024-25 Year-End and 2025-26 1s' Quarter Budget Status Report and Resolution to Amend the 2024-25 and 2025-26 Budgets
==-: ==========================
Recommendation:
It is recommended that the City Council receive a briefing on the 2024-25 year-end and 2025- 26 1st quarter budget status and consider a resolution to amend the budget to reflect current trends and available balances.
Background:
The City Council adopted the 2025-26 budget on June 30, 2025. A 1st quarter budget report is provided at this time to assist the City Council in monitoring actual 2024-25 year-end results and also budget compliance through the first three months of the 2025-26 fiscal year.
The General Fund has met and exceeded its 2024-25 fund balance projection. Surplus one-time funds are available for the City Council's policy direction. The proposed 2024-25 budget strategy a) maintains the General Fund reserve balance at the City Council policy level; b) invests in programs through transfer of the 2024-25 General Fund year-end surplus that exceeds the City Council's reserve policy; and c) applies Internal Service Fund surplus to pay down debt through transfers to the City's OPEB trust and Employee Compensated Absence funds.
This report also presents the year-to-date status of the current 2025-26 budget. The proposed 2025-26 budget amendment updates 2025-26 General Fund revenues; adds General Fund expenditure authority in the Police, Fire, and Recreation programs; updates donation and grant program budgets; and establishes a Water Conservation program per agreement with the State Water Resources Control Board. The amendment also establishes expenditure authority for a contribution to the City's OPEB Trust and incorporates the Hearthstone CFD's public safety contribution approved by the City Council after budget adoption.
Discussion & Analysis:
2024-25 General Fund Year-End Results
The General Fund has ended the year achieving its revenue target and with overall expenditure savings. The General Fund has also benefited by savings in its Internal Service programs that have been rebated to participating funds. As a result, the General Fund has met and exceeded its fund balance target for the year and has one-time funds available for transfer to re-invest in City programs. A year-end budget update is proposed to consolidate savings and to authorize the transfer of $858,000 for City Council discretionary one-time and capital spending, as follows:
Current Adjusted
Budget Update Budget Actual Variance
Revenues $23,199,189 _$450,000 $23,649,189 $23,665,647 $ 16,459 Expenditures
Operations 23,054,002 - 23,054,002 22,642,876 411,126 2% ISF Rebates (158,000) 158,000
Budget Reclass (408,000) (408,000) (408,000)
Interfund Transfer 858,000 858,000 858,000
23,054,002 450,000 23,504,002 23,342,876 161,126
Net 145,187 $ - $ 145,187 $ 322,771 $ 177,584
Revenues
Detailed revenue results by revenue category are listed in Attachment C. Total revenues of $23.6 million exceeded projection by $466,000, or which $450,000 is proposed for budget reclass to fund year-end interfund transfers for reinvestment in City programs. Of note is that each of the major tax revenue categories, including property, sales, business license, cannabis, and hotel taxes fell slightly short of budget projections, while the collection of billed Ambulance services far exceeded its projection.
Current Adjusted
Budget Update Budget Actual Variance
Revenues
Property Tax $ 7,381,890 $ $ 7,381,890 $ 7,249,321 $(132,569) Sales Tax 5,320,000 5,320,000 5,207,976 (112,023)
Other General Revenues 3,120,198 3,120,198 3,050,234 (69,964) Ambulance Fees 2,100,000 450,000 2,550,000 2,895,192 345,192 Program Revenues 2,462,100 2,462,100 2,447,923 (14,177) Measure H Transfer 2,815,000 2,815,000 2,815,000 (0)
$23,199,189 $450,000 $23,649,189 $23,665,647 $ 16,459
2 Expenditures
Detailed expenditure results by Department are listed in Attachment D. All General Fund departments operated within their approved expenditure budget with the exception of the Fire Department. The Fire Department exceeded its budget primarily due to overtime, but also incurred operating cost overruns. The non-safety departments of Administration, Planning/Engineering/Building, Library, and Recreation collectively had sufficient savings to absorb the annual General Fund vacancy savings assumption of $500,000. The Public Works department budget was also able to cover sufficient Gas Tax Fund reimbursements to meet both the State and Measure D Maintenance of Effort compliance thresholds for street maintenance.
In total, General Fund departments expended 98% of their program budgets with a savings of 2% or $411,000. The City's self-insurance programs returned an additional $158,000 in savings to the General Fund, for a total General Fund expenditure savings of $569,000. $450,000 of surplus revenues have been consolidated with these savings, and the proposed revenue/expenditure budget gross-up adds to these expenditure savings, to pay for proposed inter-fund transfers of $858,000. The net remaining General Fund expenditure savings are $161,000.
Allocated
Gross Vacancy Budget Adjusted
Budget Allowance Update Budget Actual Variance
Police $ 6,920,035 $ $ (315,000) 6,605,035 $ 6,538,901 $ 66,134 Traffic Control/Parking 891,412 (10,000) 881,412 809,930 71,482 Animal Control 253,516 0 253,516 196,446 57,070
Fire 6,452,899 - 6,452,899 6,864,418 (411,519)
Planning, Engineering, Bldg 1,373,709 (365,000) (25,000) 983,709 908,186 75,523 Public Works 1,898,848 1,898,848 1,761,466 137,381
Library 657,533 (10,000) : 647,533 633,102 14,431
Recreation 827,181 (25,000) (25,000) 777,181 765,443 11,738 Admin, Finance, Non-Dept 4,278,868 (100,000) (33,000) 4,145,868 4,006,982 138,886 Vacancy Allowance (500,000) 500,000 - -
Interfund Transfers 858,000 858,000 858,000
$23,054,002 $ $ 450,000 23,504,002 $23,342,876 $ 161,126 Proposed Transfers
A budget amendment is proposed to re-invest the June 30, 2025 General Fund's fund balance surplus into the airport and capital programs.
The Airport Fund closed the 2024-25 year with a fund balance deficit that is not expected to be able to be cleared through ongoing operations. As discussed in the 2025-26 budget, until structural changes can be implemented, the Airport is expected to continue to rely on General Fund support. City Council has asked for a separate briefing on options to rebalance future Airport operations. Consistent with projections in the 2025-26 budget, $98,000 is proposed for transfer to the Airport fund.
The remaining General Fund 2024-25 surplus of $760,000 is proposed for transfer to the Local Capital Fund for City Council consideration and allocation to one-time projects. The 2025-26 budget includes a 5-year projection of the $7 million in future General Fund program capital 3 requirements for vehicle, equipment, and other facilities projects, of which only a portion is funded. The proposed 2024-25 capital transfer will facilitate a review, re-prioritization, and acceleration of some of the deferred capital requests previously submitted by the General Fund program departments. Today's proposed action sets aside these funds for future budget allocations by City Council. Combined with the surplus, unspent funds from the City's ARPA allocation, as presented in a separate City Council agenda report, a consolidated capital spending recommendation can be brought back to City Council for future consideration. $ 98,000 Proposed transfer - Airport Fund
760,000 Proposed transfer - Local Capital Fund
$858,000
Fund Balance
The proposed $858,000 in General Fund transfers have been set at a level that maintains a combined General and Measure H Fund balance reserve at June 2025 at the City Council's reserve policy of 68 days. This 68-day reserve target, established in the annual budget adoption resolution, includes 60 days to cover the fund's liquidity/cash flow requirements from July through the first property tax remittance in December. An additional 8 days provide an emergency reserve of 10% of sales tax revenue to brace for unexpected natural or economic impacts to the City's tax revenue. The reserve calculation was updated with the 2024-25 budget to include both General Fund and Measure H expenditures, which provides liquidity and contingency coverage of the combined General and Measure H operations. Attachment B presents an overview of the General Fund's annual operations, ending balance, and reserve calculation.
2025-26 Budget Status
City-wide Expenditures
A City-wide view of the current 2025-26 year-to-date expenditures and budget status is presented at Attachment A. All funds are at or below their expected expenditure trend. Capital spending remains low and is dependent upon contract awards. Overall, 6% of the annual expenditure budget has been drawn through the first three months of the fiscal year.
General Fund Revenues
In total, the General Fund revenue budget is proposed to increase by $370,000. The 1st quarter is generally too early in the year to identify and adjust revenue trends. No general property, sales, or other taxes are proposed for adjustment at this time. These will be revisited in the 2nd Quarter results when more year-to-date data is available. However, several department program revenues are proposed for adjustment due to program changes and trends. First, the annual Hearthstone CFD public safety reimbursement, which was paused for the 2024-25 fiscal year, was restored at the time of the annual 2025-26 property owner levy. The corresponding General Fund revenue increase is $85,000 (Estimated 50% collection of $170,000 Public Services levy for the Police, Fire, and Admin Departments; the 50% collection estimate is due to stalled development of property within the CFD). Second, the downtown parking meter program and anticipated fee increase has not been implemented. If the program is resumed and implemented by January, after the holiday shopping season, the anticipated annual meter revenue impact is a reduction of $120,000. Fire/Ambulance (+$400,000) and Recreation program revenues (+$5,000) are adjusted upwards for consistency with prior year results. A detailed listing of the 4 2025-26 General Fund Revenue budget and proposed adjustments is presented at Attachment C.
General Fund Expenditures
All General Fund departments are at or near the 25% target three-month expenditure trend as of September 2025. The City has also met its vacancy savings assumption (a reduced annual $250,000) during this period. Total General Fund expenditures through September are at 21% of the annual budget.
Both the Police and Fire Departments have been allocated their respective shares from the expected Hearthstone CFD collection ($41,275 each), applied toward capital outlay and equipment repair and maintenance. In addition, the Fire Department has identified the need for supplemental funding for overtime, for which a partial allocation of $125,000 has been provided, as well as $42,000 for janitorial services at the Community Center due to the loss of a federally funded Senior Program. A detailed listing of the 2025-26 General Fund expenditure budget and year-to-date status is presented at Attachment D.
Other Fund Status
#120 - Measure H
Updated projections for the Measure H fund are presented at Attachment E. Actual sales tax revenues for 2024-25 were approximately $265,000 less than the prior projection. To maintain the program's long-term policy objective of achieving a $2 million reserve before the sunset of the tax measure, future year projected capital allocations have been reduced to fit within the available revenues.
#221/#222 - Library Grant and Donations Funds
The proposed 2025-26 budget amendment increases program spending in the Library Grant Fund ($2,000) and the Donations Fund ($5,500) to reflect additional revenues received from the State Library Grant and a donation for the holiday Tree Lighting program. #411 - Local Capital Fund
The proposed 2024-25 budget amendment provides $760,000 in new capital/one-time funds available for reinvestment in city programs. The Local Capital Fund also received $244,000 of investment income during the year, exceeding projections. With input from program departments, over $1 million of funding can be allocated to accelerate the $7 million of listed deferred vehicle, equipment, and facilities projects that were identified by departments within the 2025-26 adopted budget. The proposed 2024-25 capital transfer will facilitate a review, re- prioritization, and acceleration of some of these deferred capital requests. Combined with the surplus, unspent funds from the City's ARPA allocation, as presented in a separate City Council agenda report, a consolidated capital spending recommendation will be brought back to City Council for future consideration. Attachment E provides a recap of the General Capital program status and lists the projects that are currently budgeted as well as those identified for future year funding.
5 #522 - Airport
The airport fund has operated at a deficit for the past four years and has depleted its fund balance reserves. Fuel Sales and lease revenues have not kept up with personnel and operating costs.
The airport program will separately present a work-out plan to City Council to restore a sustainable budget. The 2024-25 proposed budget amendment includes a General Fund transfer of $98,000, as projected in the 2025-26 budget. As the City's source of unrestricted funds, the General Fund is the default fund required to cover other fund overdrafts if the fund does not have an ability to recover its deficits from future operations. Attachment G provides a recap of the Airport Fund budget projections. If proposed hangar rental rates are implemented, and if the anticipated staff reductions and operating reductions are implemented, the budgeted 2025-26 General Fund contribution might be reduced, but not likely eliminated. #513/544 - Water/Wastewater
The Water and Wastewater Fund operating budgets and five-year capital improvement programs were developed with the assumption of a potential rate adjustment in 2025-26.
Implementation of this adjustment is currently pending further review and direction. Without anticipated rate increases, these utility programs cannot fully staff operations, cover operating costs, maintain the debt service coverage committed to the 2020 revenue bond holders, or deliver the 5-year capital program necessary to maintain the system's infrastructure. Updated operating fund projections, with 2024-25 actuals, are presented at Attachments H, l, J, and K.
In the Water Operating Fund, 2024-25 user fee revenues exceeded projection. If revenues in 2025-26 again meet this prior year threshold, and if operating expenditures are controlled, the fund might meet its debt coverage ratio, but the operating reserve target would be expected to fall below the City Council's 50% policy, and no annual transfer to fund capital projects would be possible. The 5-year Water CIP program would be underfunded by approximately $2.4 million.
Consistent with a recent agreement with the State Water Resources Control Board, $200,00 of funding is proposed for allocation within the Water Capital Fund for a Water Conservation program. Funding is from a transfer of Water funds previously set aside to implement a corrective action plan for State Water Resources Control Board findings.
In the Wastewater Operating Fund, 2024-25 user fee revenues fell short of projection. If some positions are held vacant and total operating expenditures withheld by $175,000, then the fund might also meet its debt coverage ratio. However, no annual transfer to fund capital projects would be possible. The 5-year Wastewater CIP program, and specifically the $47 million Wastewater Plan improvement project, is projected to be underfunded by $27 million.
The City's long-term Water/Wastewater sustainability requires a rate adjustment to cover annual operating cost increases; to fully staff operations to meet State standards; to ensure compliance with its 2020 bond debt service coverage commitment; and to position itself to remain in good standing to qualify for additional financing to complete the Wastewater Plant improvement project.
Timely action is important to initiate a professional services contract to update the user fee study and begin the Proposition 218 process, which typically requires approximately six months to complete. Updating the study and evaluating appropriate rate adjustments will help ensure that fee revenues continue to responsibly support operational and capital program needs in the coming fiscal year.
6 Water and Wastewater rates have remained unchanged for several years, even as operational costs have increased and critical capital projects have been deferred. Completing the user tee study will provide the necessary data and policy guidance to maintain the long-term sustainability of these essential utility programs.
Internal Service Funds (ISF)
The City's five self-insurance programs have in total met their 2024-25 operating targets. A portion of ISF operating surpluses have been rebated back to program departments ($158,000 General Fund). An additional $450,000 of surplus ISF funds are proposed to be allocated to pay down unfunded liabilities, including $375,000 in supplemental contributions to the OPEB trust for retiree medical benefits and $75,000 towards the employee compensated absence reserve.
This proposal draws on surplus in the City's self-insurance medical program to reinvest in employee benefits by paying down unfunded obligations for future employee benefits.
Fiscal Impact:
The proposed General Fund 2024-25 and 2025-26
budget amendments are "break even plus" with
revenues matching or exceeding expenditures.
Further, the proposed General Fund budget
amendment continues the City's established approach
Invest in Build
Programs Reserves of allocating General Fund surplus funds in support of three financial policy objectives: 1) Reinvest in
programs; 2) Build reserves; and 3) Pay down debt.
Pay Down The combined General Fund and Measure H Fund
Unfunded
Labilities Reserves are projected at $4.5 million, or 68 days of General Fund operations, at June 2026. With this
proposed action, the City's General Fund continues to
maintain and improve its fiscal position and stability.
The City's three enterprise funds, Water, Wastewater, and Airport, will each need additional work with rate and operational updates to restore their long-term operating, debt service, and capital budgets for sustainable ongoing service delivery to their customers.
Attachments:
Resolution
Exhibit 1 to Resolution
A. 2025-26 City-wide Expenditures - Summary of Year-to-Date Expenditures by Fund B. General Fund - Fund Balance Projection
C. General Fund - Revenues
D. General Fund - Expenditures by Department
E. Measure H
F. Local Capital Projects
G. Airport
H. Water Operations
I. Water Capital Improvement Program
J. Wastewater Operations
K. Wastewater Capital Improvement Program
7 RESOLUTION NO. 2025-_
RESOLUTION OF THE CITY OF CALEXICO APPROVING
2024-25 and 2025-26 BUDGET AMENDMENTS
WHEREAS, the City Council adopted the 2025-26 Annual Budget on June 30, 2025; and WHEREAS, the City Manager has prepared a 1st Quarter 2025-26 budget update to brief City Council on the City's current budget status, including preliminary 2024-25 results and 2025- 26 year-to-date expenditures; and
WHEREAS, the City Manager has proposed a budget adjustment as listed in Exhibit 1 to this resolution, including updates to the 2024-25 budget for the General Fund year-end surplus and updates to the 2025-26 budget;
NOW, THEREFORE, BE IT HEREBY RESOLVED, DETERMINED, AND
ORDERED BY THE CITY COUNCIL OF THE CITY OF CALEXICO, AS FOLLOWS:
Section 1. The foregoing recitals are true and correct and are a substantive part of this Resolution.
Section 3. The 2024-25 and 2025-26 budgets are amended as listed in Exhibit 1 to this resolution.
Section 4. The City Manager is authorized to allocate the budgeted vacancy savings target between General Fund departments as needed to match the savings realized by various departments
PASSED AND ADOPTED at a meeting of the City Council of the City of Calexico this 19th day of November, 2025.
Diana Nuricumbo, Mayor
ATTEST:
Veronica L. Alvarado, City Clerk
APPROVED AS TO FORM:
Carlos Campos, City Attorney
STATE OF CALIFORNIA
COUNTY OF IMPERIAL SS.
CITY OF CALEXICO
1, Veronica L. Alvarado, City Clerk of the City of Calexico do hereby certify that the foregoing Resolution No. 2025-xx was passed and adopted by the City Council on the 19th day of November 2025 by the following vote to-wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
Veronica L. Alvarado, City Clerk
EXHIBIT 1
Exhibit 1 to Resolution
Proposed Midyear Budget Adjustments
2025-26
November 18, 2025
Fund Balance Impact
2024-25 Year-end Budget Adjustments
111 General Fund
Expenditures
Transfer Out to Airport Fund
(98,000)
Transfer Out to Local Capital Fund
To transfer 2024-25 General Fund expenditure savings, in excess of (760,000)
Subtotal, Transfers Out (858,000)
2024-25 Budget Adjustments to Fund Year-end Transfers
To update revenue budget and to reclassify department expenditure savings to pay for year-end transfers
Revenue Increases
Fire/Ambulance Fees 450,000
Expenditure Decreases (From year-end budget savings)
Police Department 315,000
Traffic Control 10,000
Planning, Engineering, & Building 25,000
Recreation 25,000
Administration 33,000
408,000
858,000
411 Local Capital Fund
Revenue Transfer In 760,000
522 Airport Fund
Revenue Transfer In 98,000
858,000
601 Internal Service Funds
To apply portion of 2425 Internal Service Fund savings to long-term debt reduction 601 Transfer Out From Medical program to Retiree Medical (450,000) for OPEB and to Employee Leave Reserve
602 Transfer In For OPEB Trust Contribution 375,000
607 Transfer In For Employee Leave Reserve 75,000
-
605/516 General Liability Fund/Water Capital Fund
To establish capital project for Water Conservation Program per State Water Resources Control Board agreement; paid from Water funds held in General Liabilty Func
605 Transfer Out (200,000)
516 Transfer In 200,000
-
Continued
Exhibit 1 to Resolution, Continued
Proposed Midyear Budget Adjustments
2024-25
November 18, 2025
Fund Balance Impact
Continued
2025-26 Budget Adjustments
General Fund
Revenues
Hearthstone Service Fees
To add Hearthstone CFD services charge revenue per City Council action at time of annual levy
Police Services 41,275
Fire Services 41,275
Admin Fee 2,626
85,176
Police/Parking Fees (deferred program implementation - Jan 1) (120,000) Fire/Ambulance Fees (12 month trend) 400,000
Recreation Program Revenues 5,000
370,176
Expenditures
Police Equipment (From Hearthstone Services Fee) (41,275) Fire Apparatus Repairs (From Hearthstone Services Fee) (41,275) Fire/Overtime (portion of estimated annual requirement) (125,000) Recreation/Janitorial Temporary Labor (federal funding paused) (42,000) (249,550)
120,626
Reserves
Surplus of Revenue/Expenditure budget amendment flows to Reserve to Maintain 68 Day reserve policy 120,626
221 Library Grant
To adjust State Grant budget to actual Grant Award
Revenues State Grant 2,000
Expenditures Operating Expenditures (2,000)
222 Donations Fund
To increase budget for Tree Lighting Donation
Revenues Donations 5,500
Expenditures Operating Expenditures (5,500)
516 Water Capital Fund
To add budget for State Water Resources Control Board Project Expenditures Water Conservation Project (200,000)
(200,000)
602 Retiree Medical/OPEB
To disburse 2024-25 ISF transfer to OPEB trust, as authorized above, to pay down retiree medical debt obligation
Expenditure: Contribution to OPEB Trust (375,000)
(375,000)
903 Hearthstone
To add Hearthstone CFD services charge revenue per City Council action at time of annual levy
Revenues 170,352
Expenditures (170,352)
(170,352)
ATTACHMENT A
ATTACHMENT A
2025-26 1st Quarter Budget Report
CALEXICO City-wide Expenditures
Summary of Expenditures by Fund
2025-26 Budget YTD Actual
Current 1st Q Update Adjusted 10/3/2025 % Used • Notes
General Fund Fire OT, Hearthstone
111 General Fund $ 24,110,764 $ 249,550 $ 24,360,314 $ 5,179,849 21% Public Safety Services, 120 Measure H Sales Tax 3,910,350 3,910,350 970,200 25% Recreation Janitorial Operating Grant Funds
221 Library Grants 67,633 2,000 69,633 24% Additional Grant Award 222 Community Donations 44,320 5,500 49,820 6% Tree Lighting Donation 224 New River Operations 449,769 449,769 0%
231 Gas Tax 1,179,337 1,179,337 ∞ 14%
237 Road Maintenance Rehab 4,510,000 4,510,000 1%
241 Asset Seizure/Forfeiture -
242 Prop 172/Public Safety Tax 328,000 328,000 25%
243 COPS State Grant Program 286,000 286,000 31%
245 HIDTA 47,000 47,000 0%
246 Stonegarden 75,000 75,000 26%
256 Cannabis/Applicant Reimburse 0%
258 National Opioid Settlement Fund
281 Solid Waste 2,919,320 2,919,320 437,390 15%
299 Operating Grants 498,690 498,690 88,314 18%
712 Business Imp District
Housing Funds
802 Successor Housing 100,000 100,000 250 0%
840 Fed CDBG - Program Income 8,500 8,500 900 11%
841 Fed Home - Program Income 6,000 6,000 1,020 17%
842/3 Local Funds 61,500 61,500 137 0%
846 CalHome - Program Income 1,000 1,000 188 19%
Capital Project and Debt Service Funds
223 Art in Public Places 117,000 117,000 0%
233 LTA/Measure D 11,732,765 11,732,765 0%
234/6 Transportation Development 282,000 282,000 237 0% 255 FEMA/Disaster Recovery/ARPA 3,163,941.58 3,163,942 1% 402 Measure D Bond Proceeds 2,951,905 2,951,905 - 0%
411 Local Capital Projects 2,862,969 2,862,969 2%
412 Capital Grants 10,990,116 10,990,116 0%
430-6 Development Impact Fees 2,258,868 2,258,868 : 0%
452-64 Development Projects 1,654,565 1,654,565 0%
474-5-6 New River Projects 9,599,500 9,599,500 0%
310 Measure H Debt Service 999,750 999,750 11%
Enterprise Funds
513 Water Operations 8,112,785 8,112,785 17%
514 Water Debt Service 852,517 852,517 -1%
515 Water Development Fees 678,635 678,635
516 Water Capital Program 15,031,000 200,000 15,231,000 0% SWRCB Agreement 522 Airport Operations 419,419 419,419 30%
544 Wastewater Operations 6,489,869 6,489,869 14%
545 Wastewater Debt Service 1,175,229 1,175,229 0%
546 Wastewater Impact Fees 326,528 326,528
547 Wastewater Capital 46,981,500 46,981,500 0%
CFD/Special Districts 745.000
261 Bravo Victoria 745,000 11,186 2%
903 Hearthstone 737,149 170,352 907,501 325,044 36% Public Safety Services 906 Gran Plaza 533,302 533,302 343,850 64%
Internal Service Funds
601/2 Active and Retire Medical 5,247,376 375,000 5,622,376 579,364 10% OPEB from ISF Surplus 603 Workers Compensation 1,601,000 1,601,000 490,904 31% Annual insurances paid 604 Unemployment Insurance 74,763 74,763 0%
605 General Liability Insurance 1,649,400 1,649,400 602,415 37% Annual insurances paid 607 Compensated Absence Reserve
601-7 Net Internal Charges (8572538) (375,000) (8,947,539) (1,672,682) 19% $ 167,299,494 $ 627,402 $ 167,926,896 $10,520,770 6%
ATTACHMENT B
LALEXICO
Annual Activity
Revenues
Property Tax
Sales Tax
Other General Revenues
Program Revenues
Measure H Transfer
Expenditures
:
(500,000) (500,000) (250,000) (250,000)
-
(394,503) (100,000) (494,503) (575,047) 80,544 (726,910) (726,910) 14,320,796 (100,000) 14,220,796 14,193,850 26,946 14,460,160 125,000 14,585,160 $41Fire Equip
5,193,192 (308,000) 4,885,192 4,751,981 133,211 5,799,297 83,275 5,882,572 Repairs 100,000 100,000 100,000 100,000 100,000 (Hearthstone CFD); $42K Recreation
931,423 931,423 931,422 1 993,498 993,498 Maint
265,000 265,000 264,031 969 265,000 265,000
(1,213,458 (1,244,810) (1,244,810)
Capital and Debt Service
Capital/One-time Fund Transfers
Transfer to Local Capital Fund
Transfer to Airport Fund
Debt Service - Leases
Employee Leave Obligation
CalPERS - Unfunded Liability
Retiree Medical - Benefit Payments
Retiree Medical - Amortize Liability
Total Expenditures
Net Annual Operating Results
Fund Balance
Beginning Fund Balance
Annual Operating Results
Ending General Fund Balance
Measure H Fund
Combined General/Measure H Reserve
% Annual General Fund Expenditures
Davs of General Fund Operations
ATTACHMENT C
ATTACHMENT C
2025-26 1st Quarter Budget Report
CALEXICO General Fund
Revenues
2023-24 2024-25 2025-26
Nov 25 Adjusted (Unaudited as
Actual Current Budget Updates of Nov 2025) Variance Current Budget (Nov 2025) Budget General Revenues
Property Tax
Property tax 2,444,686 2,575,800 $ 2,627,316 2%
Property Tax in lieu of MVLF 3,561,330 3,712,220 3,712,220 3,713,845 1,625 3,786,464 3,786,464 Residual Tax Increment 1,093,870 1,093,870 965,414 (128,456) 1,115,748 1,115,748 16% 673532.
7,381,890 7,381,890 7,249,321 (132,569) 7,529,528 7,529,528 Sales Tax
5,301,127 5,320,000 5,320,000 5,207,976 (212,023) 5,351,920 5,351,920 Business License
Business License 824,237 950,380 950,380 911,016 (39,364) 969,388 969,388 6% Cannabis 140,000 140,000 135,968 (4,032) 142,800 142.800 97976-
1,090,380 1,090,380 1,046,984 (43,396) 1,112,188 1.112,188 Franchise Fees
PGE/Cable/Other 216,455 219,916 219,916 169,674 (50,242) 224,314 224,314 Solid Waste 553,860 553,860 560,099 6,239 564,938 564,938 1% 5050-. 773,776 773,776 789,251
729,773 (44,003) 789,251
Other Taxes
Transient Tax 531,473 400,000 400,000 364,884 (35,116) 470,000 470,000 29% Renovations Completed
RI Prop Trns Tx 28,842 25,000 25,000 41,142 16,142 25,500 25,500 -38% Hsg Ath In Lieu 104,025 104,864 104,864 112,156 7,292 106,961 106,961 -5% 664,340 529,864 529,864 518,182 (11,682) 602,461 602,461 16% Money and Property
Investment Earnings 327,193 100,000 100,000 137,966 37,966 150,000 150,000 9% Rents And Concessions 241,393 283,920 283,920 277,754 (6,166) 191,098 191,098 -31% New cell tower Water/Wastewater Leases 274,920 280,418 280,418 274,920 (5,498) 286,027 286,027 4% agreements 843,506 664,338 664,338 690,640 26,302 627,125 627,125 -9% Other Miscellaneous Revenue
State VLF 47,833 61,840 61,840 61,905 63,077 63,077
Misc Income 8,520 2,750 2,750
Sale of Assets
56,3520 61,840 61,840 64,655 2,815 63,077 63,077 -2%
Subtotal, General Revenues 15,340,647 15,822,089 15,822,089 15,507,532 (314,556) 16,075,550 16,075,550 4% 1%
Continued
ATTACHMENT C
2025-26 1st Quarter Budget Report
CALEXICO General Fund
Revenues
2023-24 2024-25 2025-26
Actual Budget
Nov 25 Adjusted (Unaudited as Budget Update Current % VS Continued Actual Current Budget Updates Budget of Nov 2025) Variance Current Budget (Nov 2025) Budget PY Program Revenues
Police
Vehicle Code Fines 13,286 14,000 14,000 21,733 7,733 14,280 14,280 -34% Alarm Permits 450 1,000 1,000 300 (700) 50,000 50,000 16567% Program update SRO Program 89,913 125,000 125,000 146,702 21,702 270,000 270,000 84% 2nd Officer Special Service 32,911 29,500 29,500 30,639 1,139 30,090 30,090 -2% Towing Fees 41,863 52,000 52,000 56,473 4,473 53,040 53,040 -6% Livescan 32,695 30,000 30,000 29,680 (320) 30,600 30,600 3% POST 13,917 15,000 15,000 18,444 3,444 15,300 15,300
Assessment District 2005-01 153,894 240000 41,275 Hearthstone Prkg Mtrs/Lots 291,844 118,000 118,000 119343 1,343 (120,000) 120,000 1% Target Jan 1 Traffic Control Grant 150,000 330,000 330,000 150,000 (180,000) 150,000 150,000 0% Parking Citations 166,829 143,000 143,000 137,257 (5,743) 145,860 145,860 6% Misc Fees/Services 6,954 6,482 6,482 8,817 2,335 6,620 6,620 -25% Animal Licenses/Control 4,080 4,140 4,140 3,356 4,223 4,223 998,635 868,122 868,122 722,744 (145,378) 1,010,013 (78,725) 931,288 Fire
Ambulance Fees 1,536,048 2,100,000 450,000 2,550,000 2,895,192 345,192 2,500,000 400,000 2,900,000 0% 12 month trend Fire Prevention 340,690 379,460 379,460 412,208 32,748 387,049 387,049 Assessment District 2005-01 42,275 41,275 Hearthstone
Fire Late and Other Fees 1.890,00г 9,384 9,384 26,825 17,441 9,572 9,572 -64% 2,488,844 450,000 2,938,844 3,334,225 395.381 2,896,621 441,275 3,337,896 0% Planning & Building
Building
Building permits 211,447 270,000 270,000 299,470 29,470 275,400 275,400 -8% Mechanical permits 27,043 32,000 32,000 35,663 3,663 32,640 32,640 -8% Plumbing permits 12,848 20,000 20,000 22,713 2,713 20,400 20,400 -10% Electrical permits 89,243 80,000 80,000 85,244 5,244 81,600 81,600 -4% Other permits 3,600 1,450 1,450 1,482 32 1,479 1,479 0% Plan Check Fees 305,875 150,000 150,000 163,597 13,597 153,000 153,000 -6% Code Enforcement 1,720 3,700 3,700 3,593 (107) 3,774 3,774 5% Books, Maps and Publications 216
Continued
ATTACHMENT C
2025-26 1st Quarter Budget Report
CALEXICO General Fund
Revenues
2023-24 2024-25 2025-26
Actual Budget
Nov 25 Adjusted (Unaudited as Budget Update Current
Continued Actual Current Budget Updates Budget of Nov 2025) Variance Current Budget (Nov 2025) Budget Py Engineering
Encroachment Permits 109,772 103,000 103,000 112,698 9,698 105,060 105,060 Plan Check Fees-Engineering 32,000 32,000 31,860 (140) 32,640 32,640 Engineering/Inspection Fees 10,500 17,000 17,000 16,783 (217) 17,340 17,340 3% Books, Maps and Publications
Planning
Plan Check Fees 63,561 19,500 19,500 21,911 2,411 19,890 19,890 -9% Inspection Fees
Other 894 235 235 471 236 240 -49%
836,720 728,885 728,885 795,483 66,598 743,463 743,463
Public Works
State Highway Maintenance 39,050 39,000 39,000 39,050 39,000 39,000 0% Fees 7,704 12,448 12,448 10,620 (1,828) 12,697 12,697
46,754 51,448 51,448 49,670 (1,778) 51,697 51,697 4%
Parks, Recreation, and Library
Recreation program fees 72,351 68,500 68,500 80,664 12,164 69,870 5,000 74,870 -7% Library fines and penalties 4,297 4,440 4,440 (957) 4,529 4,529 30% Community Center activities 31,440 25,700 25,500 17,225 (8,275) 26,214 26,214 52% Parks activities and events 2,918 2,500 2,750 1,665 (1,085) 2,550 2,550 53% Summer swim program 10,384 10,000 10,000 16,565 6,565 10,200 10,200 -38% Leases 13,200 13,200 13,400 (800) 13,464 13,464 7%
CDCAC 146355- 19,750 19,500 19,607 20,145 20,145
144,090 7719 146.972 5,000 151,972
144,090 151,809 0%
Administration/Other
Successor Agency Admin Fee 241,466 240,000 240,000 247,516 7,516 245,000 245,000 - 1% Special District Admin Fee 43,755 40,711 40,711 40,700 (11) 45,805 2,626 48,431 19% Hearthstone Other 82 968 968
Subtotal, Program Revenues 4,203,788 4,562,100 450,000 5,012,100 5,343,115 331,015 5,509,746 Interfund Transfers
Measure H 1,122,044 2,815,000 2,815,000 2,815,000 2,910,600 2,910,600 1,122,044 2,815,000 2,815,000 2,815,000 2,910,600 2,910,600 Total General Fund Revenues $ 20,666,479 $ 23,199,189 $ 450,000 $ 23,649,189 $ 23,665,647 $ 16,459 $ 24,125,720 $ 370,176 $ 24,495,896 4% % Increase vs Prior Year
ATTACHMENT D
ATTACHMENT D
2025-26 1st Quarter Budget Report
CALEXICO General Fund
Expenditure Summary
2024-25 2025-26
YTD Actual
Adjusted (Unaudited as Nov 25 as of 10-2- % YTD
Updates Budget of Nov 2025) Budget Updates Budget Notes Actual
General Fund in Total
Salaries and Benefits
Salary and Benefits 515805085: 515.2000 29,768,897 3153,55 $15,437,070 $125,000 $ 15,562,070 $3,778,255 25% Vacancy Assumption (500,000) (500,000) (250,000) (250,000) Reimbursement - Other Funds (394,503) (100,000) (494,503) (575,047). 80,544 (726,910) (726,910) (119,500) 16% 14,320,796 (100,000) 14,220,796 14,193,850 26,946 14,460,160 125,000 14,585,160 3,658,755 25% Operating Costs
Materials/Supplies 1,368,527 (49,000) 1,319,527 1,273,558 45,970 1,471,272 1,471,272 244,129 17% Repairs/Maintenance 456,763 (60,000) 396,763 363,584 33,179 626,361 11,275 667,636 47,922 7% Contracts/Professional Services 2,920,487 (120,000) 2,800,487 2,796,173 4,314 3,183,520 42,000 3,225,520 325,866 10% General Liability Insurance 931,423 931,423 931,422 993,498 993,498 246,235 25% Administration/Office Costs 447,415 (79,000) 368,415 318,667 49,748 518,144 518,144 71,191 14% Contracts/Contribution to New
River Operating Agreement 100,000 100,000 100,000 100,000 100,000 25,000 25% Contribution to CFD 2013-1 265,000 265,000 264,031 969 265,000 265,000 0% Cost Allocation (1,213,458) (1,213,458) (1,213,458) (1,244,810) (1,244,810) (311,203) 25% 5,276,157 (308,000) 4,968,157 4,833,977 134,181 5,912,984 83,275 5,996,259 649,141 11% Capital and Debt Service
Capital/One-Time Items/Transfers 858,000 858,000 858,000 115,000 41,275 156,275 24,500 16% Debt Service/Leases 212,537 212,537 212,537 232,804 232,804 0% Employee Leave Obligation 25,000 25,000 25,000 25,000 25,000 6,250 25% Pension - Unfunded Liability 2,352,990 2,352,990 2,352,990 2,681,086 2,681,086 670,272 25% Retiree Medical - Benefit Payments 844,904 844,904 844,904 661,988 661,988 165,497 25% Retiree Medical - Amortize Liability 21,618 21,618 21,618 (0) 21,741 21.741 5,435 25% 3,457,049 858,000 4,315,049 4,315,049 3,737,620 41,275 3,778,895 871,954 23% $23,054,002 $ 450,000 $23,504,002 $23,342,876 $161,126 $24,110,764 $249,550 $ 24,360,314 $5,179,849 21% Continued
ATTACHMENT D
2025-26 1st Quarter Budget Report
General Fund
Expenditure Summary
2024-25 2025-26
Continued Actual VTD Actual
Current Nov 25 Adjusted (Unaudited as Current Nov 25 Adjusted as of 10-2- % YTD Budget Updates Budget of Nov 2025) Variance Budget Updates Budget Actual Notes Summary by Department
Police
Salaries and Benefits 5,445,922 5,445,922 5,499,652 (53,731) 5,445,453 5,445,453 1,349,882 25% Reimbursement - Grant Funds (447,000) (100,000) (547,000) (613,761) 66,761 (533,000) (533,000) (78,500) 15% Reimbursement - Dispatch (50% Fire) (409,105) (409,105) (416,493) 7,388 (384,572) (384,572) (58,618) 15% Pension - Unfunded Liability 949,761 949,761 949,761 1,099,441 1,099,441 274,860 25% Materials/Supplies 215,435 (25,000) 190,435 183,768 6,667 232,922 232,922 38,191 16% Repairs/Maintenance 142,307 (55,000) 87,307 79,366 7,941 168,685 168,685 10,526 6% Contracts/Professional Services 522,030 (100,000) 422,030 414,929 7,100 548,131 548,131 40,448 General Liability Insurance 148,777 148,777 148,777 152,174 152,174 38,044 25% Administration/Office Costs 139,372 (35,000) 104,372 80,365 24,007 158,823 158,823 27,162 Capital Outlay/One Time Items 9,000 41,275 50,275 0%
Debt Service - Equipment Leases 212,537 212,537 212,537 (0) 232,804 232,804 0% Taser/Camera Lease 6,920,035 (315,000) 6,605,035 6,538,901 66,134 7,129,862 41,275 7,171,137 1,641,995 23% Traffic Control/Parking
Salaries and Benefits 398,042 398,042 343,882 54,160 383,331 383,331 78,121 20% Pension - Unfunded Liability 37,135 37,135 37,135 43,064 43,064 10,766 25% Materials/Supplies 65,479 65,479 60,642 4,836 75,337 75,337 8,790 12% Repairs/Maintenance 9,867 9,867 6,002 3,865 21,911 21,911 989 5% Contracts/Professional Services 350,362 350,362 345,90г 4,460 371,355 371,355 37,059 General Liability Insurance 12,857 12,857 12,857 12,834 12,834 1,070 8% Administration/Office Costs 17,670 (10,000) 7,670 3,510 4,160 19,127 19,127 1,714 Debt Service - Vehicle Leases (0)
891,412 (10,000) 881,412 809,930 71,482 926,958 926,958 138,509 15% Animal Control
Salaries and Benefits 155,347 155,347 102,162 53,185 180,282 180,282 37,997 21% Pension - Unfunded Liability 21,220 21,220 21,220 24,608 24,608 6,152 25% Materials/Supplies 22,378 22,378 22,375 24,671 24,671 2,114 9% Repairs/Maintenance 3,293 3,293 2,588 706 9,132 9,132
Contracts/Professional Services 42,057 42,057 39,804 2,253 16,921 16,921 721 4% General Liability insurance 7,347 7,347 7,347 7,334 7,334 1,833 25% Administration/Office Costs 1,874 1,874 951 923 1,967 1,967 38 2% 253,516 253,516 196,446 57,070 264,915 264,915 48,856 18% Continued
ATTACHMENT D
2025-26 1st Quarter Budget Report
General Fund
Expenditure Summary
2024-25 2025-26
Continued Actual YTD Actual
Current Nov 25 Adjusted (Unaudited as Current Nov 25 Adjusted as of 10-2- % YTD Budget Updates Budget of Nov 2025) Variance Budget Updates Budget 25 Actual Notes Fire 125,000
Salaries and Benefits 4.561,614 4,561,614 4,858,593 (296,979) 4,470,048 4,595,048 1,271,005 28% Reimbursement - Grant Funds (150,000) (150,000) (162,419) 12,419 (164,000) (164,000) (41,000) 25% Reimbursement - Dispatch (50%) 409,105 409,105 416,493 (7,388) 384,572 384,572 58,618 15% Pension - Unfunded Liability 817,137 817,137 817,137 912,308 912,308 228,077 25% Materials/Supplies 267,244 267,244 279,981 (12,737) 320,887 320,887 54,095 17% Repare Martenanal senices 64,299 64,299 119,827 (55,528) 74,472 41,275 115,747 18,279 16% 359,080 359,080 412,012 (52,933) 299,925 299,925 21,129 7% General Liability Insurance 102,858 102,858 102,858 102,672 102,672 25,668 25% Administration/Office Costs 21,563 21,563 19,935 1,628 32,731 32,731 1,784 5% 6,452,899 6,452,899 6,864,418 (411,519) 6,433,615 166,275 6,599,890 1,637,656 25% Planning, Engineering, Building
Salaries and Benefits 1,046,707 1,046,707 627,667 54,040 891,468 891,468 178,896 Vacancy Assumption (365,000) (365,000) (125,000) (125,000)| Pension - Unfunded Liability 95,489 95,489 95,489 98,432 98,432 24,608 25% Materials/Supplies 41,419 (17,000) 24,419 20,938 3,480 59,639 59,639 7,086 12% Repairs/Maintenance 15,509 15,509 6,522 8,987 16,284 16,284 738 5% Contracts/Professional Services 101,889 101,889 98,136 3,753 229,815 229,815 30,633 13% General Liability Insurance 33,061 33,061 33,061 29,335 29,335 7,334 25% Administration/Office Costs 39,635 (8,000) 31,635 26,373 5,262 43,516 43,516 6,991 16% 1,008,709 (25,000) 983,709 908,186 75,523 1,243,489 1,243,489 256,285 21% Public Works
Salaries and Benefits 643,460 643,460 633,211 10,249 943,873 943,873 165,944 Vacancy Assumption (125,000) (125,000)|
Reimbursement - Grant Funds 202,497 202,497 201,133 1,365 (29,910) (29,910) 0% Pension - Unfunded Liability 117,133 117,133 117,133 125,501 125,501 31,375 25% Materials/Supplies 493,051 493,051 462,744 30,307 451,084 451,084 73,632 16% Repairs/Maintenance 94,139 94,139 33,189 60,950 229,873 229,873 5,048 2% Contracts/Professional Services 116,253 116,253 88,543 27,710 166,089 166,089 17,938 11% 100,000 100,000 100,000 100,000 100,000 25,000 25%
Neel roperting terement 85,262 85,262 85,262 87,528 87,528 21,882 25% Administration/Office Costs 47,052 47,052 40,252 6,800 50,350 50,350 3,513 7% Capital Outlay 8,000 8,000 0%
1,898,848 1,898,848 1,761,466 137,381 2,007,388 2,007,388 344,332 17% Continued
ATTACHMENT D
2025-26 1st Quarter Budget Report
General Fund
Expenditure Summary
2024-25 2025-26
Continued Actual
Current Nov 25 Adjusted (Unaudited as Nov 25 YTD Actual as % YTD Budget Updates Budget of Nov 2025) Variance Current Budget Updates Adjusted Budget of 10-2-25 Actual Notes Library
Salaries and Benefits 385,234 385,234 373,821 1,413 381,929 381,929 95,750 25% Vacancy Assumption (10,000) (10,000)
Pension - Unfunded Liability 42,440 42,440 42,440 49,216 49,216 12,304 25% Materials/Supplies 85,464 85,464 85,369 95 87,961 87,961 19,553 22% Repairs/Maintenance 13,941 13,941 10,073 3,869 14,638 14,638 2,341 16% Contracts/Professional Services 97,795 97,795 94,789 3,006 102,735 102,735 43,025 42% General Liability Insurance 14,694 14,694 14,694 14,667 14,667 3,667 25% Administration/Office Costs 17,965 17,965 11,917 6,048 23,063 23,063 6,733 29% 647,533 647,533 633,102 14,431 674,209 674,209 183,372 27% Recreation
Salaries and Benefits 476,341 476,841 Г 445,909 5,933 460,298 460,298 114,941 25%
Vacancy Assumption (25,000) (25,000)
Pension - Unfunded Liability 47,745 47,745 47,745 55,368 55,368 13,842 25% Materials/Supplies 94,757 94,757 93,788 969 123,948 123,948 21,666 17% Repairs/Maintenance 33,054 (5,000) 28,054 27,707 348 27,562 27,562 3,853 14% Contracts/Professional Services 149,695 (20,000) 129,695 125,225 4,470 223,875 42,000 265,875 17,704 7% General Liability Insurance 16,531 16,531 16,531 16,501 16,501 4,125 25% Administration/Office Costs 8,558 8,558 8,540 18 12,825 12,825 1,343 10% 802,181 (25,000) 777,181 765,443 11,738 920,377 42,000 962,377 177,473 18% Administration, Finance, Non-Dept
Salaries and Benefits 2102,131 2,102,131 1,884,000 118,131 2,280,388 2,280,388 485,719 21% Vacancy Assumption (100,000) (100,000)
Employee Leave Obligations 25,000 25,000 25,000 25,000 25,000 6,250 25% Pension - Unfunded Liability 224,930 224,930 224,930 273,148 273,148 68,287 25% Retiree Medical - Benefits 844,904 844,904 844,904 661,988 661,988 165,497 25% Retiree Medical - Unfunded 21,618 21,618 21,618 21,741 21,741 5,435 25% Materials/Supplies 83,301 (7,000) 76,301 63,953 12,348 94,823 94,823 19,003 20% Repairs/Maintenance 80,353 80,353 78,312 2,041 63,804 63,804 6,148 Contracts/Professional Services 1,181,327 1,181,327 1,176,832 4,494 1,224,675 1,224,675 117,210 General Liability Insurance 510,036 510,036 510,036 (0) 570,453 570,453 142,613 25% Contin 0 CF 20341. 153,727 (26,000) 127,727 126,824 903 175,740 175,740 21,912 12% 265,000 265,000 264,031 969 265,000 265,000 0%
Transfer Out to Airport Fund 98,000 98,000 98,000 98,000 98,000 24,500 25% Transfer Out to Capital Fund 760,000 760,000 760,000
Cost Allocation (1,213,458) (1,213,458) (1,213,458) (1,244,810) (1,244,810) (311,203) 25% 4,178,868 825,000 5,003,868 138,86
4,864,982 4,509,951 4,509,951 751,372 17%
Total General Fund Expenditures $23,054,002 $ 450,000 $23,504,002 $ 23,342,876 $161,126 $24,110,764 $ 249,550 $ 24,360,314 $5,179,849 21%
ATTACHMENT E
ATTACHMENT E
2025-26 1st Quarter Budget Report
Measure H
Fund #120
Purpose of Fund
Measure His a local sales and use tax approved by the voters in June 2010, effective October 1, 2010. The sales tax add-on (transactions and use tax) is a general-purpose tax of .5% applicable on sales within the City of Calexico and sales outside of the City under certain applicable criteria. The passage of the tax establishes a Measure H Oversight Advisory Committee to make recommendations on the use of the funds to the City Council.
Measure H Revenues pay for annual debt service on Measure H bonds issued in 2011 to fund capital projects, including fire station improvements, park improvements, and swimming pool. The Measure H committee has also in the past approved an annual allocation for Police and Fire personnel. During periods of fiscal distress, beginning in 2015 through 2021, the City General Fund drew remaining Measure H balances to sustain current operations and to rebuild its fund balance reserve.
Beginning in 2022-23, a new Measure H allocation for Recreation programming was added, and the annual General Fund transfer was limited to 2% annual growth. An annual residual is now accumulating in the fund to rebuild an Emergency Reserve. 2025-26 Budget Highlights
1. Existing program support for Police, Fire, and Recreation continues and grows by a CPI factor of 2% per year.
2. Funding for the Summer Swim program has been increased to fully fund the program after ARPA swim allocations have been expended.
3. Capital funding has been provided in 2024-25 to address the City's significant backlong in equipment replacements. The 2024- 25 capital funding has drawn down the surplus revenues earned in 2023-24.
4. The proposed Fund Balance reserve policy targets a $2 million reserve at the ending of the projection period in 2030. The reserve is expected to increase by $1 million in 2030 with the retirement of the Measure H bonds and the end of debt service. 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
Actual Budget Projection Projection Projection (Sunset) Beginning Fund Balance 725,799 $ 71,840 $ 76,398 > 223,336 $ 399,408 $ 666,508 Revenues
Measure H Sales Tax 3,642,010 4,000,000 4,100,000 4,202,500 4,307,563 4,415,252 -7% 9.8% 2.5% 2.5% 2.5% 2.5%
Investment Income
Expenditures
Transfer to Debt Fund Paid from Trustee
Bond Reserve
For Measure H Bond 1,000,447 999,750 999,750 999,750 999,750 Existing Support
Police Salaries 850,000 867,000 867,000 867,000
Fire Salaries 400,000 408,000 408,000 408,000
Recreation Programs 35,000 35,700 36,414 38,643
Recreation - Summer Swim 35,000 75,000 76,500 81,182
General Fund Transfer
1,320,000 1,385,700 1,387,914 1,394,825
Additional Support as of 2024-25
Police Salaries 600,000 624,240 662,448
Fire Salaries 600,000 624,240 662,448
Recreation Programs 295,000 306,918 325,704
1,495,000 1,555,398 1650,601
2,815,000 2,943,312 3,045,426
Capital/Equipment
Police/Patrol Vehicle 30,908 55,092
Fire/Compact Truck 65,950
Fire Apparatus - $1.1 million w, 329,460
Fire/Heart Saver Alert (Station 54,205
Sport Lights/D. Gutierrez Field 30,000
Future 30,000 30,000
480,522 30,000 30,000
4,295,968 3,995,442 3,973,062 4,006,428 4,040,462 3.075,426 Net Annual Activity (653,958) 126,938 196,072 267,101 1,339,826 Ending Fund Balance 71,840 399,408 666,508 2,006,334
ATTACHMENT F
ATTACHMENT F
2025-26 1st Quarter Budget Report
CALEXICO, Local Capital Projects
Fund #411
Purpose of Fund
This fund is used to track capital project spending from the City's local funds. The Fund receives General Fund transfers for facilities, equipment, and vehicle replacements.
2024-25 2025-26
Actual, with
Proposed GF
Projected Transfer Budget Projection Future Years
Beginning Fund Balance _$ 2,577,300 $ 2,577,300 $ 3,403,825 $ 4,038,914 Annual Activity
Revenues Proposed
Transfer in - General Fund 760,000 : :
Transfer in - FEMA/Covid Reimk 1,252,520 1,318,741
Sale of Property - Water Tower 250,000 642,785 880,534
Investment Income 20,000 244,390 20,000 20,000
1,522,520 2,323,131 662,785 900,534
Expenditures
Salaries and Benefits 5,911 16,525 32,922 32,922
Less Allocations to CIP Projects (5,911) (16,525) (32,922) (32,922) Capital Outlay
Carryover from Prior Year Budgets
91-926 Fire Station #2 455,551 442,922 :
997 Prior Year Projects 9,503 9,503
997 Parks- Medium Truck 50,525 90,000 39,475
997 PW Vehicles 155,000 155,000
997 Planning Vehicles .... 40,000 40,000
997-18 City Hall phone system 100,000 100,000
997-19 IT Server 29,705 100,000 70,295
997-21 Animal Control Infrastructure 40,000 40,000
997-22 Traffic Control Vehicle 63,892 70,000 6,108
997-23 Recreation Van Repairs 3,500 3,500
997-24 Fire-Water Pumps 30,000 30,000 - -
From 2023-24 General Fund Transfer
997-25 Animal Control rehab, additio - 5,000 5,000
997-26 Fire - Computers (5) 4,611 4,611
997-27 Fire - ESO contract 15,000 14,996 :
997-28 Fire Hose (4" & 21/2") 30,000 30,000
997-29 Fire - Air conditioner x2 (Cour 12,396 12,396
997-30 Fire - Front Office (Security) 2,202 2,202 7,798 7,798 997-31 Planning - Plotter 18,000 18,000
997-32 Engineering - Vehicle 50,000 50,000
997-33 Engineering - Desk 2,500 2,500
997-34 Building - Vehicle 10,000 10,000
997-35 Building Software/Permit pror 20,000 20,000
997-36 Building Flooring and office er 33,000 33,000
997-37 PW - Shade structure 20,000 20,000
997-38 PW - Vehicle - Admin 10,000 10,000
997-39 PW - Vehicle/Equipment 2,500 2,487 67,500 67,500 Continued
ATTACHMENT F
2025-26 1st Quarter Budget Report
ELE-
CALERICO Local Capital Projects
Fund #411
Purpose of Fund
This fund is used to track capital project spending from the City's local funds. The Fund receives General Fund transfers for facilities, equipment, and vehicle replacements.
2024-25 2025-26
Actual, with
Proposed GF
Projected Transfer Budget Projection Future Years
Continued
997-40 D Gutierrez Field Lighting, Irrig 17,794 17,794 32,206 32,206 997-41 CAC - Copy Machine 7,671 7,671 1,329 1,329
997-42 Customer Service - Counter 1,500 1,500
997-43 Office Equipt/EOCTraining Ror 3,500 35,000 -
997-48 PD Jail Alarm : 35,000
997-49 Traffic 4 Vehicles Buy Out 6,000 6,000
997-50 Planning Light Fixtures 2,500 1,747 :
997-51 HR Software NeoGov 14,500 14,300
91-921 311 Cesar Chavez Demo 118,266 118,266
91-923-17 CIP-CC Audio Visual Equipment 20,000 20,000
91-923-19 CIP-PD Parking Lot Improv. 75,000 75,000
91-923-20 CIP-Library Parking Lot Improv 75,000 75,000
91-923-21 Community Center Parking Lo - 35,000 35,000
2025-26 New Projects
91-922 1 Police - Headquarters Wastewater Lines 50,000 50,000 2 Police - (2) Patrol Cars (Balance in COPS Fund) 104,000 104,000 663,569 91-922
91-922 з Police - Parking Vehicle Replacement 50,000 50,000 200,000 91-922 4 Police - Parking Lot Shade Replacement 40,000 - 91-922 5 Police - A/C Equipment (Main & Sub) 50,000
91-922 6 Police - Meter Replacement 150,000
91-922 7 Police - Citywide Camera System 110,000
91-922 8 Police - Substation Replacement Trailers 300,000 91-922 9 Police - Dispatch Radio Replacement 15,000 60,000 91-922 10 Police - Main Building Remodel 1,500,000
91-922 11 Fire - Type 1 Engine (CC Agenda 6-18-25) 1,140,139 1,140,139 91-922 12 Fire - Automated Voice Dispatch 52,000 52,000 :
91-922 13 Fire - Wireless Digital Assistant 22,797 22,797 91-922 14 Fire - Dispatch Interface 20,700 20,700 ...
91-922 15 Fire - Dispatch lighting system #2 35,000 35,000 91-922 16 Fire - Inspector vehicle 70,000
91-922 17 Fire - Ambulance : 299,391
91-922 18 Fire - Communication Upgrades 150,000
91-922 19 Fire - Building Maintenance 60,000
91-922 20 Fire - Sta. 1 Parking Lot repavement 150,000
91-922 21 Fire - Extrication Equipment 126,403
91-922 22 Fire - Vehicle Parts & Equipment 200,000
91-922 23 Fire - Ladder Truck (CIP replaced with Lease) :
91-922 24 Public Works - General Fund Vehicles 200,000
Continued
ATTACHMENT F
2025-26 1st Quarter Budget Report
CALERICO Local Capital Projects
Fund #411
Purpose of Fund
This fund is used to track capital project spending from the City's local funds. The Fund receives General Fund transfers for facilities, equipment, and vehicle replacements.
2024-25 2025-26
Actual, with
Proposed GF
Projected Transfer Budget Projection Future Years
Continued
91-922 25 Public Works- Water Tower Repair 150,000
91-922 26 Public Works - Demo 352 1st Street 486,000
91-922 27 Public Works - Chamber of Commerce 286,000
91-922 28 Public Works - Parks Master Plan 300,000
91-922 29 Library - Building Repairs, Grading 80,000
91-922 30 Recreation - Kitchen Improvements 100,000 100,000 91-922 31 Recreation - Department Truck 45,000
91-922 32 Recreation - Community Center Flooring 180,000 91-922 33 Recreation - Cultural Arts Center Door : .... 100,000 91-922 34 Recreation - Com Center - Marquee/Sign 100,000 91-922 35 Recreation - Community Center Door : 250,000
91-922 36 Recreation - Com Center - Parking Lot 880,000 695,995 861,516 2,862,969 2,683,847 7,066,463
Net Annual Activity 826,525 1,461,615 (2,200,184) (1,783,313) Ending Fund Balance $ 3,403,825 $ 4,038,914 $ 1,203,641 $ 2,255,602 Balance Sheet
Cash/Due from Other Funds 4,093,359
Accounts Payable (64,445)
Available Fund Balance $ 4,028,914
10,000
Fund Balance Reserves
2026-27 General Fund Capital Projects $ 429,006 $ 429,006 $ 429,006 2027-28 General Fund Capital Projects 208,276 208,276 208,276 2028-29 General Fund Capital Projects 83,174 83,174 83,174 2029-30 General Fund Capital Projects 204,622 204,622 204,622 General Fund Future Years 2,210,000
Measure H Future Years : 120,000
Unfunded Future Years 3,811,385
Capital Reserve, per Budget Reso 250,000 250,000
Available Fund Balance Available to fund or accelerate projects 28,563 / 1,080,524 $ 1,203,641 $ 2,255,602 $ 7,066,463
ATTACHMENT G
ATTACHMENT G
2025-26 1st Quarter Budget Report
Public Works
BEIE
CALEXICO Airport
Operating Fund #522
Purpose of Fund
The City operates an international airport. Primary revenue sources include fuel sales and hangar rentals. 2023-24 2024-25 2025-26
Actual
(Unaudited Projection
Actual Nov 2025) Budget (Nov 2025) Notes
Beginning Available Fund Balance $ 2,777 $ 64,779 $ 26,135 $ 53,097 Annual Activity
Revenues
Fees and Charges 246,413 181,679 189,658 189,658
Rents and Concessions 107,918 109,607 128,000 128,000 Anticipated Fee Operating Grant -Federal - - Increases $18K
Operating Grant - State 10,000 10,000 10,000 10,000 Aid to Airport Investment Income
364,331 301,286 327,658 327,658
Transfer In - General Fund 140,000 98,000 73,000 General Fund 504,331 399,286 425,658 400,658
Expenditures
Salaries and Benefits 188,638 175,314 142,014 142,014 Reduced 5 FTE Materials/Supplies 39,995 37,316 41,905 41,905
Cost of Sales 166,464 119,055 160,000 160,000
Repairs/Maintenance 16,310 11,090 13,450 13,450
Contracts/Professional Services 18,259 54,280 48,550 48,550 Administration/Office Costs 12,662 13,912 13,500 13,500 Capital Outlay/Transfers
442,329 410,968 419,419 419,419
Deferred Expenses
442,329 410,968 419,419 419,419
Net Annual Activity 62,002 (11,682) 6,239 (18,761)
Ending Available Fund Balance $ 64,779 $ 53,097 $ 32,374 $ 34,336 8% 8%
Balance Sheet 8% Target Reserve
Cash 43,309 34,793 One Month of
Receivables - Operations
Prepaid/Inventory 27,443 27,999
Payables (5,972) (9,696)
Available Fund Balance $ 64,779 $ 53,097
ATTACHMENT H
ATTACHMENT H
2025-26 1st Quarter Budget Report
Public Works
CALEXICO Water Operations
Fund #513
is Cather dent Hair Ton
Purpose of Fund
The Water Fund provides domestic potable water service to 8,000 residential and commercial customers. Bonds were issued in 2020 that include a covenant to set user rates to provide revenues, net of operating expenses, of 125% of annual debt service. Surplus operating revenues are transferred to the CIP fund to provide for ongoing capital requirements. A new rate study has been budgeted and will be under City Council consideration to update customer service fees for the next 5 years to maintain bond covenant compliance and to provide for the 5-year capital program.
2024-25 2025-26
Actual Budget Budget Projection
(Unaudited With Current With 6 mos
Nov 2025) Rates New Rates Nov 2025 Notes
Beginning Fund Balance $ 2,984,575 $ 3,307,697 $ 3,307,697 $ 3,041,541 Annual Activity
Revenues Revenue projection
Customer Service Fees 8,194,355 7,800,000 7,800,000 8,194,355 updated to PY Actual; Pending - New Billing Rates 390,000 Hate Increase 7-1-26 Other fees/charges 202,212 212,000 212,000 202,212
Transfer In - 605 (SWRCB Residual) 656,358
Investment Income 74,392 50,000 50,000 50,000
9,127,316 8,062,000 8,452,000 8,446,567
Expenditures
Salaries and Benefits 3,119,980 3,975,756 3,975,756 3,975,756 Vacancy Allowance - (350,000) (90,000) With Positions Filled Materials/Supplies 1,144,232 1,285,900 1,285,900 1,285,900 Repairs/Maintenance 93,375 195,800 195,800 195,800
Contracts/Professional Services 388,282 600,000 600,000 600,000 General Liability Insurance 278,594 234,746 234,746 234,746 Administration/Office Costs 144,802 189,350 189,350 189,350 City-wide Cost Allocation 698,853 670,052 670,052 670,052 Land Lease 194,769 198,665 198,665 198,665
Transfer - Debt Service/Vehicles 20,195 26,167 26,167 26,167 Subtotal, Operating Budget 6,083,082 7,026,435 7,286,435 7,376,435 % Increase 3% 16% 20% 21%
Transfer - Debt Service/Bonds 820,850 826,350 826,350 826,350 Transfer - Capital Fund 2,166,418 (0) (0)
Transfer - Internal Service Fund
9,070,350 7,852,785 8,112,785 3,202,785
209,215 Operating Reserve
Net Annual Activity 56,966 3339,215 243,782 Policy Target Ending Fund Balance $ 3,041,541 $ 3,516,913 $ 3,646,913 $ 3,285,323 50% Operating Budget % of Operations 50% 50% 50% 45% Reserve falls below target Balance Sheet Debt Coverage
Cash (340,480) 8,062,000 8,452,000 8,446,567 Revenues
Customer Accounts Receivable, net 3,825,151 (7,026,435) (7,286,435) (7,376,435) Operating Expenditures Current Payable (204,288) 1,035,565 1,165,565 1,070,132 Net Customer Deposits (238,842) 826,350 826,350 826,350 Debt Service Transfer Available Fund Balance $ 3,041,541 125%| 141%| 130% Ratio
ATTACHMENT I
ATTACHMENT I
2025-26 1st Quarter Budget Report
Public Works
CALEXICO Water Capital Improvement Program
Fund #516
Purpose of Fund
This fund tracks capital investment in the City's Water System. Bonds were issued in 2020 to finance the 5-year CIP program including treatment plant improvements.
2024-25 2025-26
Actual
(Unaudited Budget With Budget With Projection
Nov 2025) Current Rates Updated Rates Nov 2025 Notes
Beginning Fund Balance $ 23,760,769 $ 23,739,402 $ 23,739,402 $26,116,753 Annual Activity
Revenues- Transfers from Other Funds
515 Water Development Fees 678,635 678,635 678,635
513 Water Operating Fund 2,166,418 :
Gen Liability (SWRCB) 200,000 :
605
Investment Income 359,606 50,000 50,000 50,000
2,726,024 728,635 728,635 728,635
Expenditures
960 New Clarifier and Filter System 6,000,000 6,000,000 6,000,000 966 Water Pipeline Replacement 52,041 4,086,000 4,086,000 4,086,000 977 Water Rate study 9,270 62,500 62,500 62,500
987 Switch to Hypochlorine - 800,000 800,000 800,000
988 Prelim Engineering/Treatment Pla
992 Water Equipment 308,729 500,000 500,000 500,000
91-919 Replacement of VFD 300,000 300,000 300,000
91-920
Repair Pumps at WTP, Raw and
Eastside Raw Water Reservoir 350,000 350,000 350,000
91-938 4.0 and 6.0 Million Gallon Water :
Tank Rehabiliation 1,396,500 1,396,500 1,396,500
91-942
Clarifier B and C Rehabilitation : 1,336,000 1,336,000 1,336,000 91-949 Upgrade SCADA System 200,000 200,000 200,000
91-952 Water Conversation Program 200,000
370,041 15,031,000 15,03,000 15,231,000
Net Annual Activity 2,355,984 (14,302,365) (14,302,365) (14,502,365) Ending Fund Balance $ 26,116,753 § 9,437,037 $ 9,437,037 $11,614,387 Balance Sheet 5-Year Capital Improvement Program
Cash $ 11,996,066 2026-27 $ 7,387,000
Cash with Fiscal Agent 14,091,740 2027-28 2,211,000
Accounts Receivable 42,740 Nov 2025 Update 2,016,387
Accounts Payable (13,793) Unfunded 2,405,613
Available Fund Balance 3 26,116,753 5 14,020,000
Funding Source
2026 Fund Balance $ 11,614,387
Future user fees 2,405,613
3 14,020,000
ATTACHMENT J
ATTACHMENT J
2025-26 1st Quarter Budget Report
Public Works Department
CALEXICO Wastewater Operations
Funds #544
....
Purpose of Fund
The Wastewater Fund provides service to 8,000 residential and commercial customers. Bonds were issued in 2020 that include a covenant to set user rates to provide revenues, net of operating expenses, of 125% of annual debt service. Surplus operating revenues are transferred to the CIP fund to provide for ongoing capital requirements. A new rate study has been budgeted and will be under City Council consideration to update customer service fees for the next 5 years to maintain bond covenant compliance and to provide for the 5-year capital program. The proposed fees will anticipate additional long-term financing for the capital program 2024-25 2025-26
Actual Budget with 6
(Unaudited Budget With mos New Projection
Nov 2025) Current Rates Rates (Nov 2025) Notes
Beginning Fund Balance $ 2,053,395 $ 2,337,959 $ 2,337,959 $ 2,168,009 Annual Activity
Revenues
Customer Service Fees 6,289,164 6,350,000 6,350,000 6,350,000 Pending - New Billing Rates 317,500
Other Fees :
Investment Income 91,392 50,000 50,000 50,000
6,380,556 6,400,000 6,717,500 6,400,000
Expenditures
Salaries and Benefits 1,981,286 2,460,163 2,460,163 2,460,163 Hold vacancies or other Vacancy Allowance (175,000) (175,000) operation savings without rate increase
Materials/Supplies 959,928 1,039,256 1,039,256 1,039,256 Repairs/Maintenance 191,491 310,700 310,700 310,700
Contracts/Professional Services 227,919 353,900 353,900 353,900 General Liability Insurance 134,483 121,156 121,156 121,156 Administration/Office Costs 229,283 249,200 249,200 249,200 City-wide Cost Allocation 514,605 491,221 491,221 491,221 Land Lease 80,151 81,754 81,754 81,754
Transfer/Debt Fund - Leases 16,872_ 23,829 23,829 23,829 Subtotal, Operating Budget 4,336,018 4,956,180 5,131,180 4,956,180 % Increase 7% 14% 18% 14%
Transfers - Debt Service/Bonds 1,146,200 1,151,400 1,151,400 1,151,400 Transfers - Future Bond
Transfer/Capital Fund 183,72. 152289 207,289 Deferred Capital Funding 6,265,942 6,259,869 6,489,869 6,107,580
Net Annual Activity 114,614 140,131 227,631 292,420
Operating Reserve
Ending Fund Balance $ 2,168,009 - $ 2,478,090 $ 2,565,590 $ 2,460,429 Policy Target 50% 50% 50% Operating Budget
Balance Sheet Debt Service Coverage
Cash $ 2,337,886 6,400,000 6,717,500 6,400,000 Revenues Current Payables (169,877) (4,956,180) (5,131,180) (4,956,180) Operating Expenditures Available Fund Balance 2,168,009 1,443,820 1,586,320 1,443,820 Net 0 1,151,400 1,151,400 1,151,400 Debt Service
125% 138% 125% Ratio
ATTACHMENT K
ATTACHMENT K
2025-26 1st Quarter Budget Report
Public Works
CALEXICO Wastewater Capital Improvement Program
Fund #547
Alaw Coleras brothes ther
Purpose of Fund
This fund tracks capital investment in the City's Wastewater System. Bonds were issued in 2020 to finance the 5-year CIP program including plant expansion and upgrade. Additional long-term financing is under consideration in 2024-25 to finance the anticipated cost increases of the plant expansion project. 2024-25 2025-26
Actual
(Unaudited With Current With Updated Projection
Nov 2025) Rates Rates Nov 2025 Notes
Beginning Fund Balance $ 49,146,582 $49,440,901 $ 49,440,901 $50,604,151 Annual Activity
Revenues
Transfer - Impact Fees 326,528 326,528 326,528
Transfer In - Operating 783,724 152,289 207,289 207,289 Investment Income 923,122 200,000 200,000 200,000
1,706,846 678,817 733,817 733,817
Expenditures
933 Lift Station No. 9/11 Rehab. 13,002,000 13,002,000 13,002,000 936 UV Disinfection System Upgrade 2,792 1,800,000 1,800,000 1,800,000 937 Laboratory Equipment Replacement 16,552 40,000 40,000 40,000 938 Compactor, Bar Screen, Grit
Chamber Replacement (Headwork) 1,190,000 1,190,000 1,190,000 940 Manhole/Collection Rehab 22,580 2,330,000 2,330,000 2,330,000 972 Lift Station No. 1 Replace 126,000 126,000 126,000
973 Plant Expansion/Upgrade 25,051,000 25,051,000 25,051,000 974 CCTV Inside/Sewer Collection Pipes
977 Wastewater Rate study 9,519 62,500 62,500 62,500
986 Collection Master Pian 201,000 201,000 201,000
993 Wastewater Equipment 198,834 700,000 700,000 700,000 91-940 Aeration Basin Rehabilitation 151,000 151,000 151,000 91-944 Digester Cleaning at WWTP : 801,000 801,000 801,000 91-945 Lagoon Sludge Removal 1,076,000 1,076,000 1,076,000 91-946 Replacement of Motors at Lagoons 150,000 150,000 150,000 91-947 Replacement of Pumps at
Waste Activated Sludge
Pump (WASP) 100,000 100,000 100,000
91-948 Secondary Clarifier (#3) 201,000 201,000 201,000 249,277 46,981,500 46,981,500 46,981,500
Net Annual Activity 1,457,569 (46,247,683) (46,247,683) Ending Fund Balance 3 50,604,151 210302637 $ 3,193,217 > 4,356,467 5-Year Capital Improvement Program
Balance Sheet 2026-27 $ 2,580,000
Cash $ 28,135,542 2027-28 630,000
Cash with Fiscal Agent 22,372,141 Nov 2025 Update 1,146,467 Accounts Receivable 102,576 Unfunded 27,413,533
Accounts Payable (6,107) 3 31,770,000
Available Fund Balance $ 50,604,151 Funding Source
2026 Fund Balance $ 4,356,467
Future user fees/Grants/Bonds 27,413,533
$ 31,770,000