Staff Report
City Council
Item No. 5.B
Meeting Date: November 12, 2025
From: Kevin Biersack, Financial Services Director
Title: FY 2025/2026 Budget Roll Over and Budget Adjustments RECOMMENDATION:
City Council approve the FY 2025/2026 budget carryforward and newly identified adjustments.
BACKGROUND:
With the closeout of the City’s fiscal year (FY) 2024/2025 financial activities, there are specific General Fund (and equivalent) obligations that were not incurred (expensed). In addition, there are newly identified commitments that have since been identified after the Biennial Budget for FY 2025/2026 & FY 2026/2027 was adopted in May 2025.
DISCUSSION:
General Fund
Fiscal Year (FY) 2025/2026 is year one of the City’s current biennial budget. This budget was adopted in May 2025. Since budget adoption, FY 2024/2025 carry forward obligations and newly identified expenditures for FY 2025/2026 have been identified.
Carry forward obligations from FY 2024/2025 consist of council district improvements, Esperanza Park final payments and various professional service contracts for finance, building and engineering departments. They are summarized below:
Newly identified items are comprised of both one-time and recurring expenditures. Newly identified FY 2024/2025 expenditures are summarized below:
FUND BALANCE PROJECTIONS
For the fiscal year ending (FY 2025/2026), General Fund financial data is provided below identifying the adopted/original Biennial Budget along with the associated projected Fund Balance “Savings Account” reserves for this year and forecasted net reserves in the following fiscal year:
City staff is continuing to focus on area for efficiencies and priorities of our internal operations in supporting the community/constituents while safeguarding the financial stability of the City’s General Fund.
Measure W Fund
This new fund (151) was created in FY 2024/2025 to separately account for expenditures targeted using Measure W passed by Cathedral City voters in November 2024. They are a few expenditures obligated in FY 2024/2025, that were not delivered and/or provided until FY 2025/2026. Below outlines those FY 2024/2025 obligations where the expenditures will be incurred in FY 2025/2026.
FISCAL IMPACT:
City Council approve FY 2025/2026 budget adjustments:
• General Fund (100) expenditure authority increases totaling $1,653,347, • Measure W Fund (151) expenditure authority increases totaling $45,607.
FIVE-YEAR STRATEGIC PLAN:
Goal C: Fiscal Stability and Sustainability
Objective: Cathedral City has economically prospered by facilitating the investment of private dollars in high quality development which benefits the community. We remain financially solvent by instituting prudent fiscal policies and transparent financial practices.
ATTACHMENTS:
None