2025-2026
2nd Quarter • ОС
• по
de
- Budget Report
City Council Presentation 124
March 4, 2026 95,054
154,568 97,511
56,845 99,011
18 110,000 99,216
2,487 101,090
124,000 150,000
35,000 101
105,450 83,000
86,502 15.000
Today's Objectives
Monitor Six-Month Expenditures
$ Receive Report
Monitor General Fund Revenue Projections
Amend Budget Consider resolution to amend the 2025-26
budget
$1.6M one-time insurance settlement
• Build reserves
Discuss Policy Options • Fund capital needs
• Pay down debt
2 ---
2025-26 Citywide Expenditure Overview
Citywide Expenditures are within 6-Month Budget Trend;
Capital spending timing depends on staffing capacity, contract awards, and procurement timelines.
City-wide Year-to-Date Expenditures
$120,000,000
% Used $100,000,000
Budget a Expenditures s
General Fund 24,412,314 $ 11,574,865 47% $80,000,000
Enterprise/Other Operations 25,920,184 6,680,406 26%
Debt 4,468,299 2,191,264 $60,000,000
49%
Capital 113,075,688 4,528,034 4% $40,000,000
$ 167,876,485 $ 24,974,567 15%
$20,000,000
$-
General Fund Enterprise/Other Debt Capital
Operations
• Budget = Expenditures
2025-26 General Fund Expenditures
General Fund Expenditures are within 6-Month Budget Trend General Fund Expenditures
$10,000,000
$9,000,000
$8,000,000
Budget Expenditures % Used $7,000,000
Police, Traffic, Animal $ 8,610,925 $ 4,340,031 50% $6,000,000 Fire 6,621,890 3,460,798 52% $5,000,000
Other Programs 4,639,548 1,770,831 38% $4,000,000
Administration 4,539,951 2,003,204 44% $3,000,000
$ 24,412,314 $ 11,574,865 47% $2,000,000
$1,000,000
$-
Police, Traffic, Fire Other Programs Administration
Animal
• Budget • Expenditures
2025-26 Proposed Budget Amendments
Expenditures
Expenditures
City Attorney FTE $62,000
City Attorney Legal Services (62,000)
City Manager Ballot/Other Consultants 30,000
Police (Code Enforcement) 247,915
Building (Code Enforcement) (247,915)
Fire ProCare Maintenance Contract 22,000
Total Net Increase $52,000
5 2025-26 Proposed Budget Amendments
Revenues
Property Tax $ 15,000
Business License (79,000)
Transient Occupancy Tax 30,000
Property Transfer Tax 9,000
Housing in Lieu 7,000
Planning, Engineering, Building - Fees 70,000
Net Increase $ 52,000
Insurance Settlement 1,674,094
$ 1,726,094
Measure H Fund $ (75,000)
Policy Options for One-Time Revenue
For City Council Discussion and Feedback for Future
Budget Action
Budget Strategy Options
Invest in Build
Programs Reserves
1. Build Reserves
2. Invest in Programs (5-Year CIP Program)
Pay Down 3. Pay Down Debt (OPEB Trust)
Debt
5-Year General Fund Capital Requests
Department Submissions - March 2026
$ 2,297,669 Vehicle replacement
2,380,000 Fire ladder truck, ambulances
714,545 Technology/computers/software
578,500 Equipment
2,935,000 Facilities
$ 8,905,714
Departments Included:
Police • Fire • Planning/Building • Public Works • Library • Recreation General Fund Reserve Policy
Example Allocation Options for $1.6 M Insurance
Settlement Revenue
Current
Policy Option #1 Option #2 Option #3
18% $1.8
Operating $0 Capital $700,000 million
Reserve Capital Capital
28% 25% 20%
Operating Operating Operating
Reserve Reserve Reserve
Enterprise Funds
Water, Wastewater and Airport
These funds continue to require rate and Additional discussion will be needed prior to operational updates to support long-term the development of the 2026-27 budget. sustainability.
10 The General Fund remains on track with
the adopted FY 2026 budget, and the
City's fiscal position continues to
strengthen.
Conclusior
Proposed budget amendment remains
structurally balanced
Staff recommends that Council receive
and file the report and adopt the proposed
budget amendment resolution.