Camarillo City Council
AGENDA REPORT
Date: February 11, 2026
To: Honorable Mayor and City Councilmembers
From: Greg Ramirez, City Manager
Submitted by: Mark Uribe, Finance Director
Subject: Fiscal Year 2025/26 Mid-Year Budget Report and Commitment of General Fund Surplus, and Request for Funding: kidSTREAM
BACKGROUND
The budget is a dynamic document subject to a variety of adjustments and fine-tuning throughout the fiscal year, as changes occur in economic conditions and other factors affecting the budget. Amendments are necessary to keep the document more reflective of anticipated outcomes. The Mid-Year Budget review provides an opportunity for all departments to review their areas of responsibility and present recommended changes to the City Manager for further recommendation to the City Council and the CSD Board.
The Fiscal Year (FY) 2025/26 Mid-Year Budget Report is presented to the City Council and the Camarillo Sanitary District (CSD) Board for discussion and approval.
DISCUSSION
The City of Camarillo Mid-Year Financial Report summarizes the City’s financial information from July 1 through December 31, 2025 compared to budgetary estimates.
The City’s FY 2025/26 Mid-Year financial position remains stable. The General Fund is expected to draw on its fund balance to accommodate encumbrance rollovers from the prior Fiscal Year and one-time projects planned to be funded with available unrestricted fund balance. Additionally, City Council has approved additional appropriations, from July 1, 2025 to December 31, 2025, further impacting the General Fund fund balance.
One of the largest General Fund revenue sources, sales tax, is experiencing a decline, reflecting shifts in consumer spending and economic conditions. However, this decrease is offset by higher investment earnings and unsecured property tax revenue. The Mid- Year Budget report discusses the recommended budget adjustments to revenue and expenditure projections based on trends and anticipated program activity for the remainder of FY 2025/26.
Fiscal Year 2025/26 Mid-Year Budget Report
February 11, 2026
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The General, Citywide Lighting and Landscape, Capital Improvement Projects (CIP), Solid Waste, Transit, Water, and Sanitary District Funds are considered “major funds” and are our primary focus since their budgets represent the majority of the City’s total budget.
The details of the recommended budget adjustments to revenue and expenditure projections will be summarized in the Mid-Year Budget Report, Exhibit A.
The following reports are attached:
“Exhibit A”, Mid-Year Budget Report, July 1 through December 31, 2025 outlining the current fiscal condition of the City of Camarillo (City) and the CSD, and a discussion of the major recommended budget adjustments.
“Exhibit B”, Summary by Fund, provides a summary of the City and CSD funds, summarized revenues, expenditures, interfund transfers and adjustments. This schedule reflects the effect of the recommended changes on the estimated fund balance or working capital of each fund.
“Exhibit C”, Recommended Adjustments, is a complete listing of the recommended budget adjustments, including revenues, expenditures and interfund transfers. “Exhibit D”, Reserve Analysis, is a listing of the reserve targets by fund pursuant to City Council Policy 3.05.
GASB 54 Commitment of General Fund Surplus
In 2011, the City implemented GASB Statement No. 54 which requires the City to report governmental fund balances in distinct classifications. City Council, as the governing body of the City, may commit fund balance for specific purposes pursuant to constraints imposed by formally adopting a resolution. The Council’s resolution to commit fund balance must occur within the fiscal reporting period in order to be reported in the ACFR for that fiscal year.
On June 11, 2025, the City Council adopted commitments of the General Fund fund balance totaling $89.9 million for the following purposes:
$31,683,913 for Council Reserve Goal per Policy 3.05
14,405,000 Facility Improvement Projects
10,000,000 Natural Disaster Recovery
8,000,000 Pleasant Valley Rec & Park District – Community and Senior Center 5,400,000 Economic Development
3,800,000 Continuum of Care
200,000 Camarillo Springs Debris Remediation
15,000,000 Loan to Water Utility
1,400,000 Unfunded Accrued Liability PRSP Trust Fund
$89,888,913 Total Committed Fund Balance
Fiscal Year 2025/26 Mid-Year Budget Report
February 11, 2026
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Commitments are established at the discretion of the City Council and may be changed at any time by Council resolution.
The City ended Fiscal Year 2024/25 with a $9.5 million surplus in the City’s General Fund due to a combination of better-than-expected revenues and lower-than-expected expenditures. Staff recommends committing this additional $9.5 million fund balance by making the following amendments to the General Fund Commitments of fund balance:
Unfunded Accrued Liability PRSP Trust Fund
At the time of the Fiscal Year 2025/26 budget adoption, it was anticipated that $1.4 million in annual pension costs would have to be funded through the City’s Pension Rate Stabilization Program (PRSP) Trust Fund. At June 30, 2025 a Commitment was established to replenish the Trust. With the General Fund surplus recognized in Fiscal Year 2024/25, the annual pension costs could be paid using a portion of that surplus.
Therefore the proposed draw on the Trust was not necessary and the Commitment of $1.4 million can now be eliminated.
Continuum of Care
On August 13, 2025, a $2 million General Fund contribution to the County of Ventura for Homekey+ Permanent Supportive Housing Project Partnership was approved with the understanding that the funds would come out of the Continuum of Care Commitment. The General Fund surplus recognized in Fiscal Year 2024/25, can be used to replenish the Continuum of Care Commitment for the $2 million contribution draw so that Commitment will remain at $3.8 million as set aside for homelessness and housing purposes.
Facility Improvement Projects
Several significant facilities capital projects are planned over the next five years, including City Hall improvements, Corp Yard remodel, Library improvements, and Police facility improvements. To establish funding for these projects, staff recommends increasing the Commitment by the remainder of the $9.5 million General Fund surplus recognized in Fiscal Year 2024/25, or $7.5 million, to $21.9 million.
General Fund Reserve Policy Goal
With the Mid-Year Budget adjustments, the General Fund budgeted expenditures and transfers out are now $67,752,965. Per Council Reserve Policy 3.05, the City will maintain a minimum reserve level of 50% of the operating budget. Therefore, the new Reserve Goal Commitment amount will be $33,876,483.
The recommended commitments of the General Fund fund balance are as follows:
$33,876,483 for Council Reserve Goal per Policy 3.05
21,905,000 Facility Improvement Projects
10,000,000 Natural Disaster Recovery
8,000,000 Pleasant Valley Rec & Park District – Community and Senior Center Fiscal Year 2025/26 Mid-Year Budget Report
February 11, 2026
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5,400,000 Economic Development
3,800,000 Continuum of Care
200,000 Camarillo Springs Debris Remediation
15,000,000 Loan to Water Utility
$98,181,483 Total Committed Fund Balance
Request for Funding: kidSTREAM
On October 28, 2025 kidSTREAM submitted a request for funding in the amount of $150,000 for Furniture, Fixtures and Equipment (FF&E). The City Council’s Community Grant Funding Policy 1.12 includes an “Other Funding” provision which states: “All other requests for City funding must be directed to the City Manager’s office. Any recommended funding will require City Council budget approval.” Staff is recommending City Council consider this request for funding to be added to the FY 2025/26 Budget.
FISCAL IMPACT
With the recommended budget adjustments, the FY 2025/26 Budget remains operationally stable. Increasing General Fund Commitments has no budgetary impact and positions the City financially to fund necessary longer-term City Council objectives.
CEQA DETERMINATIONS
City staff has determined, in accordance with Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines, that the Fiscal Year 2025/26 Mid-Year Budget Report and increase to the General Fund Commitments are not subject to CEQA review because it can be seen with certainty that there is no possibility that the Fiscal Year 2025/26 Mid-Year Budget Report nor increase to the General Fund Commitments may have a significant effect on the environment.
RECOMMENDATION
1. Approve the FY 2025/26 Mid-Year Budget Report and authorize the City Manager to adjust the FY 2025/26 Budget and make the necessary appropriations.
2. Adopt a resolution to commit $98,181,483 of the Projected General Fund’s Fund Balance for the fiscal year ending June 30, 2026
3. Authorize an appropriation of $150,000 for kidSTREAM FF&E in the Community Grants Account No 101-441.45-13 from available General Fund Unassigned Fund Balance.
ATTACHMENTS
1. Fiscal Year 2025/26 Mid-Year Budget Report – “Exhibit A”
2. Summary by Fund – “Exhibit B”
Fiscal Year 2025/26 Mid-Year Budget Report
February 11, 2026
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3. Recommended Adjustments – “Exhibit C”
4. Reserve Analysis – "Exhibit D"
5. Resolution – GASB 54 Commitment
6. kidSTREAM Request For Funding
REFERENCE MATERIALS – AVAILABLE FOR REVIEW AT CITY HALL None