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GENERAL FUND
Current Year – 2025/26
Measure Y was passed in the 2024 General Electi on and provides the necessary resources to enable the City to maintain its Clovis Way of Li fe. Based on current estimates, General Fund revenues are projected to be approximately $14. 3 million above expenditures for fiscal year 2025/26. This is directly attributable to Measur e Y; otherwise, the G eneral Fund would have been operating at a deficit.
Revenues
General Fund total revenues are projected to e xceed the current fiscal year’s working budget by $2.2 million. This increase is primarily due to the additional sales tax anticipated from the passage of Measure Y on Novem ber 5, 2024, which came in higher than what was budgeted based on projections from the Cit y’s sales tax consultant, HdL. This additional local 1¢ sales tax was implemented on April 1, 2025, and budgeted for 2025/26 at $26.2 million. HdL projects Measure Y sales tax for 2025/26 at $30.6 million. HdL also projects Bradley Burns sales tax for 2025/26 to be $29.1 million. They anticipate cons trained growth for both Bradley Burns and Measure Y at an average of 2-3% for the projected fiscal years. This is a turnaround from the prior three fiscal years, where the City experienced annual declines averaging 2% each year.
Although sales tax revenues are anticipated to gr ow, other discretionary revenue is anticipated to decline. A new cardroom agr eement effective November 2025 will reduce cardroom fees by approximately $0.3 million. Franchise fees are steadily declining due to an increase in consumer use of streaming services for television entertainment, but th is decline was already accounted for in the working budget. Transient Occupancy Taxes are anticipated to experience the largest decline to discretionary revenues from the working budget by $1.3 million, based on regional analysis from the Visit California w ebsite and trend analysis of the City’s historical occupancy data. Business licenses show an unantic ipated decline in revenues to date and are projected to close the fiscal year $0.5 million under the work ing budget. Property taxes are holding steady at a three-year average growth of 6-7%.
The City was awarded a $6.0 milli on Police grant to combat reta il theft, funding five police officers and one police service officer in 2023/24. Of this grant, $1.6 million was projected for the current year, with $1.2 millio n budgeted for the next fiscal year 2026/27 when the grant ends. The Fire department was awarded the Staffing for Adequate Fire and Emergency Response (SAFER) federal grant for $2.0 million to hire six new firefighters effective March 2026 through March 2029. All projected grant revenues are offset by corresponding expenditure increases in salaries, benefits, over time, vehicles, and equipment. Once the grant funding has ended for the Police Retail Theft gr ant and the Fire SAFER grant, the General Fund will absorb the personnel costs associated with these positions.
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Expenditures
General Fund expenditures are proj ected to exceed the current fi scal year’s council approved budget by approximately $4.7 milli on. Most of this increase is due to Council approved MOU changes from salary negotiations totaling $3. 7 million, along with several other budget amendments in the categories of services, materials, and supplies. In summary, this leaves the General Fund operating budget proj ected at a surplus of $14.3 million for the current fiscal year.
Forecast Years – 2026/27 through 2030/31
Revenu
es
Property taxes and sales taxes are the two lar gest sources of discretionary revenue, making up 86% of total discretionary revenues on average, and 70% of total General Fund revenues.
With the addition of the Measure Y sales tax, these figures have increased significantly from approximately 60% of discretionary revenues and 50% of total revenues. Franchise fees, business licenses, and transient occupancy taxes make up most of the remaining discretionary revenues.
Property tax growth is largely driven by growth in the City. When reside ntial, commercial, or industrial growth occurs, there is a corres ponding increase in the demand for services.
However, the increase in property tax revenues to support this additi onal demand will not be received by the City until potentially two years afte r the growth occurs. In addition, the property tax rate cannot exceed 2% growth annually due to Proposition 13 st atutory limitations.
Property tax growth during the forecast period is projected to increase at a rate corresponding closely to a five-year average of 750 single and multi-family residential units.
Sales tax revenues are nearly doubling due to the passage of Measure Y, which was implemented on April 1, 2025. This additional loca l sales tax will supplement the statewide 1% Bradley Burns sales tax. Unlike the Bradley Burn s tax, Measure Y revenues are not subject to the 5% County share requiremen t. The City’s Bradley Burns experienced its first reduction in growth in 2022/23 since the Great Recession. Prior to the 2022/23 fiscal year, the City experienced unprecedented, robust growth in 2020/21 and 2021/22 totaling 36%. Recently, Bradley Burns experienced three straight year s of an average 2% decline due to inflationary pressures on households, shifting dollars away fr om discretionary spending as a larger portion of income goes to essentials such as non-ta xable food, transportation, and housing costs. For the remaining projected years, and including the additional revenue from Measure Y, sales tax is expected to experience normalized growth at 2-3% annually with population growth at 750 residential units per year.
Growth in franchise taxes is largely due to electricity rate increases. As more households move away from traditional hard-wired phone and cabl e TV service toward cellular and satellite services which are not taxed, there is a corre sponding decline in franc hise taxes. All other discretionary revenues are foreca st to increase at average growth plus inflation based on the Pacific Cities Consumer Price Index for December 2025 of 2.9%. 8
Expenditures
With the passage of the City’s local sales tax Measure Y, several departments are expected to grow across all five projected years to conti nue supporting the Clovis Way of Life and address the top priorities identified by our residents. These priorities include:
Maintaining 9-1-1 emergency medical, polic e, fire and paramedic response, fire protection, and police patrols
Keeping public areas safe and clean
Retaining local small businesses and jobs
Protecting local drinking water sources
Accelerating repairs to streets and roads
Addressing homelessness
Maintaining youth programs, parks, and other general services
This includes remaining financ ially stable by incr easing our emergency reserve, building a stable fund balance, and setting aside funds for future fleet and facility needs. Departments will see considerable allocations over the projected five-year period in the specific categories of Staff, Fleet, and Capital purchases. Estimated expenditures for the forecasted years have been allocated as follows: Public Safety is anticipated to receive 50 new positions at an estimated cost of $27 million over the five-year projected period; Fleet is allocated $5 million; and Public Utilities is expected to receive 10 new positions at an estimated cost of $4.7 million over the five-year projected period.
The City is projected to receive an average of $32 million annually in new Measure Y funds.
However, these funding amounts are approximate and subject to change should inflationary pressures continue to restrict resident discretionary spending and create major fluctuations in this revenue. The City will continually monitor these funds and make changes to our spending plan as the need arises.
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Public Employment Retirement System (PERS)
PERS costs are projected to cont inue rising significantly during the forecast period due to the market volatility of investment returns for the PERS investment portfolio. PERS did outperform its expected rate of return of 6.8% (discount rate) for its 2024/25 in vestments with an 11.6% rate of return. This is a notable improvement from the two most recent years of 5.8% and 9.3% in 2022/23 and 2023/24, respectively. Like all invest ments, they are influenced by a variety of economic and geopolitical challen ges. At this point, the full impact of the investment fluctuations has not been determined. The following chart shows the expected General Fund PERS costs, both as a percentage of salary and in dollars, for the forecast period.
As shown in the chart, annual General F und PERS costs are projected to rise by approximately $5 million between t he current year and the end of the forecast period. The impact of the PERS costs associated with salaries is significant; those costs as a percentage of Miscellaneous salaries remain fairly constant at about 30%, and Safety salaries are now remaining fairly constant at about 58%.
Approach to the Forecast
The Five-Year Financial Forecast represents staff’s best estimate of the City’s finances for the next five years and will be the basis on which the budget is developed. The forecast is structurally sound. Major increases to revenues, such as extraordinary commercial growth, are not currently realized and were t herefore not considered in the development of the forecast.
Measure Y began collecting revenue on April 1, 2025. Departments developed their 5-year implementation plans for the us e of Measure Y funds, and these investments are included in the forecast. However, not everything was able to be included while maintaining fiscal sustainability. This required some identified needs to be excluded from the forecast, though they remain as goals to achieve if funding becomes available.
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Growing Demands
The City continues to grow, and in recent year s, it has grown fast er than the long-term average. This growth drives some revenue grow th, but it also drives a growing demand for services. Police and Fire comprise the largest expenditures in the General Fund at 75% of the total General Fund expenditur es and 89% of the General Fund discretionary revenues projected. Public Safety is most impacted by this growing demand. Measure Y will allow the City to grow services back to a level resident s deserve and have come to expect. In order to be as effective as possible, staff will continue to evaluate different ways of delivering services using technology, social media, and best practices. Failure to grow these departments, as well as other General Fund departments at a rate corresponding to the growth of the City, will diminish the Clovis Way of Life our residents have come to enjoy and expect.
The Forecast shows that Clovis is on a sustainab le fiscal path with substantial opportunities to invest wisely to build up the foundation for ma intaining a high-quality community. This is a significant shift from eight een months ago when the City was facing forecasted deficits and corresponding service cuts. It is imperative that the City invests all resources wisely and does not return to the previous precarious fiscal c ondition that threatened the Clovis Way of Life.
The City’s revenue streams have varying degrees of dependency on economic conditions, with sales tax including Measure Y currently being the most exposed to this dependency and volatility. Preparing for downturns and implementing strategic investment plans with strong fiscal support is crucial for the City to we ather an economic downturn or disruption and maintain the Clovis Way of Life as the community grows.
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CITY OF CLOVIS
General Fund Financial Forecast - Summary
(dollars in thousands)
2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Beginning Available Fund Balance 8,420 8,060 4,460 7,970 7,350 7,480 6,490 5,470 5,450 Reappropriation/Encumbrances 230 (450) 360 (950)
REVENUES
Discretionary 76,290 79,840 88,760 115,520 119,810 123,200 127,490 131,950 136,530 Non-Discretionary 23,340 24,880 28,830 27,990 28,610 27,920 27,900 28,480 29,180 Total Revenues 99,630 104,720 117,590 143,510 148,420 151,120 155,390 160,430 165,710
EXPENDITURES
Public Safety 72,210 77,460 85,720 96,580 106,770 109,120 113,350 116,900 120,900 Public Utilities 12,400 13,060 14,120 16,220 17,610 18,220 18,680 19,090 19,510 General Government 10,700 11,800 14,750 16,380 17,350 17,540 18,150 18,410 18,950 Total Expenditures 95,310 102,320 114,590 129,180 141,730 144,880 150,180 154,400 159,360 Resources Above/(Below) Operating Expenditures 4,320 2,400 3,000 14,330 6,690 6,240 5,210 6,030 6,350
ADDITIONAL ITEMS
Transfers Out to Housing Trust 0 0 (1,000) (750) (100) ( 100) (100) (100) (100) Transfers Out to General Government Facilities Fund (2,020) (2,580) (130) (520) 00000 Transfers Out to PDS-Gen Fund & Measure Y Projects (300) (370) (350) (480) ( 620) (630) (640) (650) (660) Transfers Out to Fleet Fund (990) (1,000) 0 (2,250) (840) (1,500) (490) (300) (1,960) Total Additional Items (3,310) (3,950) (1,480) (4,000) (1,560) (2,230) (1,230) (1,050) (2,720) Net Increase/(Decrease) to Fund Balance 1,010 (1,550) 1,520 10,330 5,130 4,010 3,980 4,980 3,630 Available Fund Balance 9,660 6,060 6,340 17,350 12,480 11,490 10,470 10,450 9,080
OTHER ITEMS
(Use of)/Addition to Measure Y (Capital/Fleet Needs) 0 0 0 8,000 3,000 3,000 3,000 3,000 3,000 (Use of)/Addition to Emergency Reserve 1,600 1,600 (1,630) 2,000 2,000 2,000 2,000 2,000 2,000 Total Other Items 1,600 1,600 (1,630) 10,000 5,000 5,000 5,000 5,000 5,000 Ending Available Fund Balance 8,060 4,460 7,970 7,350 7,480 6,490 5,470 5,450 4,080 Measure Y Balance (Capital/Fleet Needs) 0 0 0 8,000 11,000 14,000 17,000 20,000 23,000 Emergency Reserve Balance 21,000 22,600 20,970 22,970 24,970 26,970 28,970 30,970 32,970 Emergency Reserve as a % of Expenditures 22.00% 22.10% 18.30% 17.80% 17.60% 18.60% 19.30% 20.10% 20.70%
PROJECTEDESTIMATEDACTUALS
General Fund Summary 2/27/2026 8:16 AM
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CITY OF CLOVIS
General Fund - Financial Forecast (dollars in thousands)
REVENUES ESTIMATED
2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Residential Units (SF + MF) 658 610 637 700 750 750 750 750 750 Discretionary
Property Taxes 19,890 21,510 22,680 24,180 25,830 26,210 27,220 28,270 29,320 Property Tax In Lieu-VLF 12,910 13,880 14,680 15,650 16,310 17,000 17,710 18,450 19,220 Sales Tax - Bradley Burns 29,720 29,020 28,680 29,110 29,690 30,490 31,400 32,340 33,310 Sales Tax - Measure Y 0 0 7,170 30,640 31,310 32,160 33,120 34,110 35,130 Franchise Fee 2,950 2,950 3,190 3,350 3,450 3,550 3,650 3,750 3,850 Business License Tax 4,120 4,680 4,650 4,990 5,410 5,820 6,260 6,730 7,230 Other Taxes 6,040 7,020 7,060 6,870 7,070 7,210 7,350 7,500 7,650 Interest 400 510 330 450 450 460 470 480 490
Other Revenues-Discretionary 260 270 320 280 290 300 310 320 330 Total Discretionary
76,290 79,840 88,760 115,520 119,810 123,200 127,490 131,950 136,530 Non-Discretionary
Community Facility Fees 2,680 3,230 3,620 3,610 3,870 4,110 4,360 4,620 4,880 Sales Tax-Public Safety 520 500 490 480 490 500 520 540 550 Licenses & Permits 70 60 70 90 90 90 90 90 90
Fines & Forfeitures 260 190 230 230 240 240 240 240 240 Building Rentals 50 80 120 150 150 150 150 150 150
State Subventions-Gas Tax 1,780 2,020 2,590 2,880 2,920 2,960 3,000 3,040 3,080 Grants 3,110 3,390 5,570 3,100 2,950 1,610 910 790 790
From Other Agencies 880 850 890 830 850 870 890 910 930 Current Services 2,280 2,070 2,560 2,300 2,360 2,410 2,460 2,510 2,560 Landscape Maintenance Charges 4,650 4,960 5,370 5,960 6,130 6,250 6,380 6,510 6,640 Other Revenues-Non Discretionary 410 550 180 450 470 480 490 500 510 Impact/Rental Fees 1,870 1,960 2,040 2,140 2,200 2,240 2,280 2,330 2,380 Admin Charges 4,780 5,020 5,100 5,770 5,890 6,010 6,130 6,250 6,380 Total Non-Discretionary 23,340 24,880 28,830 27,990 28,610 27,920 27,900 28,480 29,180 Total Revenues 99,630 104,720 117,590 143,510 148,420 151,120 155,390 160,430 165,710
ACTUALS PROJECTED
General Fund 2/27/2026 8:25 AM
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Revenue Assumptions (dollars in dollars)
PROPERTY TAXES:
2.00% $357,000,000 18.75% of 1%
Increase in Assessed Value above is based on 750 residential units Nonresidential Units based on % of Residential Units is 23%
PROPERTY TAX IN LIEU-
VEHICLE LICENSE FEES (VLF): INCREASE BY ASSESSED VALUE GROWTH 4.20% (Based on 750 units) SALES TAX: CPI
2.90% 1.00% 2,000 PER YEAR $234
COUNTY SHARE: 5.00% OF GROSS BRADLEY BURNS (Based on 750 units)
0.00% OF MEASURE Y
2026/27 2027/28 2028/29 2029/30 2030/31
SALES TAX GROWTH %: PROJECTED 2.2% 2.7% 3.0% 3.0% 3.0%
FRANCHISE FEE: NEW RES UNITS FEE PARTICIPATION % P G & E CPI PER YEAR OF GROSS 50.00% Comcast/AT&T $250 Per Unit per Mo
2.90% 750 1.00% $90 Per Unit per Month
Note: 5 year average for residential units is 800, 10 year average is 900, 15 year average is 820 units BUSINESS LICENSE TAX: 2.90% INCREASE BY CPI NEW BUSINESSES 5.50% OTHER TAXES: Includes Transient Occupancy Tax, Cardroom Fees, and Real Property Transfer Tax
2.90% INCREASE BY CPI
INTEREST RATE: 3.00% ON PRIOR YEAR'S BALANCE
OTHER REVENUES: 2.90% INCREASE BY CPI
COMMUNITY FACILITY FEE: 500 ANNUAL FEE: $306 CPI: 2.90% SALES TAX-PUBLIC SAFETY: PROPOSITION 172 - HALF CENT SALES TAX FOR PUBLIC SAFETY - ESTIMATES PROVIDED BY CONSULTANT LICENSES & PERMITS: 2.90% INCREASE BY CPI
FINES AND FORFEITURES: PARKING AND VEHICLE $227,000 BASED ON THREE YEAR AVERAGE BUILDING RENTALS: 2.00% ANNUAL INCREASE
STATE SUBVENTIONS: GAS TAX
PER CAPITA $20.10 2,000 PER YEAR (Based on 750 units)
Gas Tax Per Capita based on last year actuals
GRANTS: $790,000 CURRENT AVERAGE OF ONGOING GRANTS
FROM OTHER AGENCIES: 2.90% INCREASE BY CPI
CURRENT SERVICES: 2.90% INCREASE BY CPI
LANDSCAPE MAINTENANCE
CHARGES: 2.90% INCREASE BY CPI
IMPACT/RENTAL FEES: BASED ON ADD'L ROUTES PROJECTED IN THE ENTERPRISE FUND AND INCREASE BY CPI ADMIN CHARGES: 2.00% ANNUAL INCREASE
CITY TAX RATE (Before reductions)
SALES TAX RATE POPULATION GROWTH PER CAPITA PER YEAR
ANNUAL INCREASE INCREASE IN ASSESSED VALUE
POPULATION GROWTH
2/3 OF NEW RESIDENTIAL UNITS:
General Fund 2/27/2026 8:25 AM
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CITY OF CLOVIS
General Fund - Financial Forecast (dollars in thousands)
EXPENDITURES ESTIMATED
2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31
PUBLIC SAFETY
Salaries
Police - Sworn 11,720 12,880 13,880 17,020 18,560 19,340 20,100 20,890 21,690 Fire 7,640 7,350 7,390 9,790 11,040 11,260 11,600 11,860 13,060 Public Safety - Management 4,330 4,340 4,560 4,600 4,690 4,780 4,880 4,980 5,080 Police - Non Sworn 4,250 4,240 4,540 5,790 6,670 7,270 7,580 7,820 7,980 Fire - Non Firefighters 340 360 340 530 730 820 930 1,020 1,130 Overtime
Overtime - Police 3,340 3,670 4,150 4,190 4,270 4,360 4,450 4,540 4,630 Overtime - Fire 2,620 2,870 4,080 3,550 4,030 4,110 4,190 4,270 4,360 Extra Help 1,130 1,470 1,720 1,800 1,800 1,800 1,800 1,800 1,800 Benefits
Health 3,830 4,220 4,450 5,310 6,150 6,740 7,300 7,880 8,640 Retirement 12,400 13,270 14,510 16,380 19,400 19,220 20,520 20,750 21,320 Other 4,300 4,610 4,880 6,290 6,400 6,530 6,660 6,790 6,930 Services, Materials & Supplies 15,530 16,890 19,430 20,680 21,280 21,710 22,140 22,580 23,030 Capital Outlay 780 1,290 1,790 650 1,750 1,180 1,200 1,720 1,250 Total Public Safety 72,210 77,460 85,720 96,580 106,770 109,120 113,350 116,900 120,900
PUBLIC UTILITIES
Salaries 2,780 2,940 3,190 3,800 4,500 4,740 4,830 4,930 5,030 Overtime 130 130 130 150 150 150 150 150 150
Extra Help 40 0 0 0 0 0000
Benefits
Health 550 640 700 850 1,080 1,210 1,290 1,380 1,480
Retirement 540 580 680 800 920 910 980 970 960
Other 280 270 280 360 420 450 460 470 480
Services, Materials & Supplies 8,040 8,430 8,890 10,120 10,410 10,620 10,830 11,050 11,270 Capital Outlay 40 70 250 140 130 140 140 140 140
Total Public Utilities 12,400 13,060 14,120 16,220 17,610 18,220 18,680 19,090 19,510
GENERAL GOVERNMENT
Salaries 3,830 4,080 4,420 5,380 5,810 5,930 6,050 6,170 6,290 Overtime 10 10 40 20 20 20 20 20 20
Extra Help 610 650 740 980 980 980 980 980 980
Benefits
Health 660 670 710 930 1,070 1,140 1,220 1,310 1,400
Retirement 850 940 1,050 1,340 1,360 1,330 1,420 1,410 1,390 Other 290 310 310 390 400 420 450 490 540
Services, Materials & Supplies 4,420 4,930 7,400 6,880 7,500 7,510 7,800 7,810 8,110 Capital Outlay 30 210 80 460 210 210 210 220 220
Total General Government 10,700 11,800 14,750 16,380 17,350 17,540 18,150 18,410 18,950 Total Expenditures 95,310 102,320 114,590 129,180 141,730 144,880 150,180 154,400 159,360
ACTUALS PROJECTED
General Fund 2/27/2026 8:25 AM
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Expenditure Assumptions (dollars in thousands)
SALARIES: 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 POLICE-CPOA 7/1 3.00% 2.00% 2.00% 2.00% 2.00% 2.00% SALARY BASE $17,020 $18,120 $19,700 $20,960 $21,900 $22,800 Additional -Salaries $0 $1,190 $850 $510 $450 $350
Number of Additional Officers 7 6 4 3 3 3
Additional Non-Sworn Positions 4 7 5 2 1 0
Total Sworn Officer Positions 135 141 145 148 151 154
FIRE 7/1 3.00% 2.00% 2.00% 2.00% 2.00% 2.00% SALARY BASE $9,540 $10,970 $11,450 $11,750 $12,190 $12,530 Additional -Salaries $250 $260 $70 $200 $90 $1,040
Number of Additional Firefighters 15 0 0 0 0 9
Additional Non-Sworn Positions 0 3 1 2 1 1
Total Sworn Positions 83 83 83 83 83 92
PUBLIC UTILITIES 7/1 3.00% 2.00% 2.00% 2.00% 2.00% 2.00% SALARY BASE $3,800 $4,060 $4,590 $4,830 $4,930 $5,030
Additional Salaries-Park/Street $0 $440 $150 $0 $0 $0
Additional Park/Street Positions 6 7 3 0 0 0
GENERAL GOVT 7/1 3.00% 2.00% 2.00% 2.00% 2.00% 2.00% MANAGEMENT 7/1 3.00% 2.00% 2.00% 2.00% 2.00% 2.00% OVERTIME: INCREASE BY SALARIES % 2.00% 2.00% 2.00% 2.00% 2.00% EXTRA HELP: FLAT FOR NEXT FIVE YEARS
HEALTH: INCREASE PER YEAR 7.0%
(PERS ESTIMATE)
RETIREMENT: 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 POLICE-SAFETY 58.08% 58.02% 58.00% 59.50% 58.50% 57.30% FIRE 58.08% 58.02% 58.00% 59.50% 58.50% 57.30%
PUBLIC UTILITIES 29.37% 27.75% 27.70% 28.60% 28.10% 27.50% GENERAL GOVERNMENT 29.37% 27.75% 27.70% 28.60% 28.10% 27.50% MANAGEMENT 29.37% 27.75% 27.70% 28.60% 28.10% 27.50%
PERS EE COST SHARING -MISC -8.40% -8.40% -8.40% -8.40% -8.40% -8.40% PERS EE COST SHARING -SAFETY -8.00% -8.00% -8.00% -8.00% -8.00% -8.00% WORKERS COMP: Police-CPOA 16.48% 16.00% 16.00% 16.00% 16.00% 16.00% (included in other benefits) Fire 3.70% 4.00% 4.00% 4.00% 4.00% 4.00% Mgmt & Admin 1.56% 2.00% 2.00% 2.00% 2.00% 2.00%
Public Utility 3.68% 4.00% 4.00% 4.00% 4.00% 4.00%
OTHER BENEFITS: Previous year's amount increased by contracted and estimated salary increases. Includes 2% of non-safety salaries for deferred comp, 1% of total salaries for sick leave incentive, 1.45% for medicare and 1% for other benefits.
OTHER SMS: INCREASE BY CPI 2.90% 2.00% 2.00% 2.00% 2.00% CAPITAL OUTLAY: INCREASE BY CPI 2.90% 2.00% 2.00% 2.00% 2.00% FOUR YEAR AVERAGE-PUBLIC SAFETY $1,130
FOUR YEAR AVERAGE-PUBLIC UTILITIES $130 + ADDITIONAL EQUIP FOR NEW EMPLOYEES FOUR YEAR AVERAGE-GEN GOVT $200
EMERGENCY RESERVE: Maintain not less than 15% with a goal to reach 25% of total expenditures. See the Summary Sheet for reserve amounts.
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ENTERPRISE FUNDS
The Enterprise Funds forecast provides t he City Council and the City Manager with an early identification of financ ial trends and the future financial co sts of legislative and regulatory requirements, allowing leadership to respond appr opriately. Enterprise Funds, by definition, are supported by rates set to recover the full co st of services, including capital outlays and debt service. The rate-setting process require s advance planning, preparat ion of rate studies, a public hearing process, and a final decision to implement new rates if approved. This process can take up to six months to complete. For this reason, the forecast is a critical management tool for the City.
Further detail regarding each Enterprise Fund is discussed in the following sections. Annually, staff reevaluates all ent erprise operations to determine if any rate adjustments are needed. At this time, Sewer and Community Sanitation enterprise oper ations have approved increases sufficient to carry the operations through the forecast period, barring any unforeseen or catastrophic events. A water rate study was rec ently completed for the Water Enterprise Fund, resulting in Council action—based on staff recommendation—to conduct a Proposition 218 proceeding for increasing water ra tes to compensate fo r the system's increased operations and maintenance costs. As these rate increases meet their objectives, staff will continue to evaluate implementing smaller, more measur ed increases on an annual basis to avoid large one-time spikes for ratepayers.
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Water Enterprise
The Water Enterprise Fund is projected to end fiscal year 2025/26 with a working capital balance of approximately $18 million. This forecast reflects current financial assumptions and does not include the potential impacts of a Proposition 218 water rate adjustment. The City’s existing rate structure, adopted in 2016 to comply with state requirements for tiered water rates, was revenue neutral. At that time, Council also authorized a 3% annual rate escalator to support increasing operating costs, capital needs, and debt service coverage for the 2013 Surface Water Treatment Plant bonds. The five-year forecast assumes the continuation of this 3% annual increase.
A comprehensive water rate study completed in 2025 and finalized in 2026 determined that operating and maintenance costs are increasing faster than revenues under the current rate structure. The study concluded that additional revenue is required to maintain service levels, meet regulatory obligations, and support long-term system sustainability. Based on these findings, the
City initiated Proposition 218 proceedings proposing water rate increases of approximately 21% per year for three
years beginning January 1, 2027,
followed by a 3% annual escalator beginning July 1, 2029. A Public Hearing is scheduled for A pril 2026. If the proposed rate adjustments are approved, staff will recommend that the 3% increase scheduled for July 1, 2026, not be implemented.
The forecast includes several major cost driver
s. Beginning in fiscal year 2024/25, the capital
program incorporates $2.5 million annually for five years to implement an Advanced Metering Infrastructure (AMI) project. The Fund also continues to contribute to reserves established for compliance with the Sustainable Groundwater Management Act (SGMA). Dedicated reserves remain in place for Trichloropropane (TCP) treatment, funded by a 2016/17 legal settlement, and for future treatment of
polyfluoroalkyl substances
(PFAS), supported by settlement
proceeds beginning in 2024/25.
Despite these reserves, expenditures are projected
to outpace revenues over the forecast
period, resulting in a signific ant decline in the endi ng fund balance. Without additional rate
adjustments, the Water Enterprise Fund will face increasing pressure on its ability to support
operations, capital needs, and regulatory compliance.
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Actual Actual Actual Estimated Projected Projected Projected Projected Projected 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 BEGINNING WORKING CAPITAL 22,060 20,190 22,690 23,270 18,020 13,180 10,270 7,270 5,750
REVENUES
WATER CHARGES 19,980 20,840 23,310 23,400 24,240 25,100 26,000 26,920 27,870 DBCP & PFAS - LEGAL SETTLEMENTS 210 210 1,170 2,980 180 190 190 190 190 TOTAL REVENUES 20,190 21,050 24,480 26,380 24,420 25,290 26,190 27,110 28,060
EXPENDITURES
SALARIES 3,630 3,680 3,890 4,510 4,710 4,880 4,970 5,070 5,170 E X T R A H E L P 2 0 01 02 02 02 02 02 02 0
OVERTIME 140 150 160 180 180 180 180 180 180
BENEFITS
RETIREMENT 710 750 840 990 910 940 1,000 1,000 990
HEALTH 590 620 630 810 870 930 1,000 1,070 1,140
OTHER 410 360 310 420 470 490 500 510 520
SERVICES, MATERIALS & SUPPLIES 11,100 12,510 14,810 17,530 17,330 17,690 17,890 18,090 18,070 MEMBRANE REPLACEMENT 300 450 0 0 1,10 00000
TCP TREATMENT 100 100 150 150 150 150 150 150 150
CAPITAL OUTLAY 3,720 1,990 3,220 5,120 3,970 3,970 3,970 2,970 2,970 TOTAL EXPENDITURES 20,720 20,610 24,020 29,730 29,710 29,250 29,680 29,060 29,210
OTHER REVENUE AND EXPENSE
INTEREST/RENTAL/GRANTS 760 2,080 2,030 2,330 1,880 1,280 1,190 1,130 1,120 760 2,080 2,030 2,330 1,880 1,280 1,190 1,130 1,120
TRANSFERS-OUT (CAPITAL) (500) (500) (750) (250) (250) (250) (250) (250) (250) PARK DEV PAYBACK - BASIN/PARK 0 1,7000000000
INTERFUND LOAN TO GENERAL SERVICES 750 750 750 750 750 750 750 750 750 CONTRIBUTION-SURFACE WTP (750) (750) (730) (730) (730) (730) 0 0 0 MEMBRANE REPLACEMENT RESERVE (100) (100) (100) (100) (100) 1,100 (100) (100) (100) RESERVE FOR DROUGHT CONTINGENCY (500) (500) 50 0000000
RESERVE FOR SGMA (1,000) 0 0 (500) (500) (500) (500) (500) (500) RESERVE FOR PFAS TREATMENT 0 0 (960) (2,800) 00000
RESERVE FOR TCP TREATMENT 0 (620) (620) (600) (600) (600) (600) (600) (600) ENDING WORKING CAPITAL 20,190 22,690 23,270 18,020 13,180 10,270 7,270 5,750 5,020 RESERVE FOR MEMBRANE REPLACEMENT 1,080 1,180 1,280 1,380 1,480 380 480 580 680 RESERVE FOR DROUGHT CONTINGENCY 7,000 7,500 7,000 7,000 7,000 7,000 7,000 7,000 7,000 RESERVE FOR SGMA 5,000 5,000 5,000 5,500 6,000 6,500 7,000 7,500 8,000 RESERVE FOR PFAS TREATMENT 0 0 960 3,760 3,760 3,760 3,760 3,760 3,760 RESERVE FOR TCP TREATMENT 7,650 8,270 8,890 9,490 10,090 10,690 11,290 11,890 12,490
CITY OF CLOVIS
Water Enterprise - Financial Forecast (dollars in thousands) Water 2/23/2026 9:18 AM
22
Bi-monthly Meter Charges: Residential - $27.71 Commercial - $22.30 Residential Usage Rates: $1.13 per 1,000 gallons for 0 to 23,000 gallons, $1.88 per 1,000 gallons for 23,000 - 40,000 gallons, $2.26 per 1,000 gallons above 40,000 gallons. Dwelling unit charge $13.45 per month ($26.90 bi-monthly).
Commercial Usage Rates: $1.13 per 1,000 gallons 0 to 23,000 gallons, $1.53 per 1,000 gallons over 23,000 gallons. Monthly charge from $11.15 (1") to $1,130.36 (10").
Current Charges: INCREASED EACH YEAR BY THE AVERAGE INCREASE OF THE PREVIOUS THREE YEARS 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31
Rate Increase: 7/1 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
Rate Increase: 3% Based on Council approved annual rate increase unless not necessary.
Interest: 3.00% OF PREVIOUS YEAR'S WORKING CAPITAL OR A MINIMUM OF $10,000 Salaries: CPWEA 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 7/1 3.00% 2.00% 2.00% 2.00% 2.00% 2.00%
Salary Base $4,510 $4,600 $4,800 $4,970 $5,070 $5,170
Additional Employee $105 $75
Extra Help: FLAT FOR NEXT FIVE YEARS
Overtime: FLAT FOR NEXT FIVE YEARS
Retirement: 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31
29.37% 27.75% 27.70% 28.60% 28.10% 27.50%
PERS Cost Sharing: -8.40% -8.40% -8.40% -8.40% -8.40% -8.40% Health: INCREASE PER YEAR 7.00%
Other Benefits: -WORKERS COMP 3.68% FOR CPWEA 2.00% FOR ADMIN -MEDICARE 1.45% OF SALARIES
-DEFERRED COMP/SICK LEAVE/OTHER 5.25% OF SALARIES
Other SMS: INCREASE BY CPI FOR FUTURE YEARS 2.90%
(Increase energy cost by 50% for the Surface Water Treatment Plant operation beginning in 2004/05) Rental of the New Corp Yard-beginning 2002/03 $320 per year Capital Outlay: CURRENT CPI 2.90%
Transfers Out: FOR CAPITAL CONTRIBUTIONS FOR DISTRIBUTION SYSTEM IMPROVEMENTS FOR LAND ACQUISITION DESIGN AND CONSTRUCTION OF RECHARGE FACILITIES-100% Reserves: WELLHEAD TREATMENT CONTINGENCY ESTABLISHED FOR CLEANUP OF DBCP CONTAMINATION
MEMBRANE REPLACEMENT RESERVE ESTABLISHED FOR NEW MEMBRANE COSTS
DROUGHT CONTINGENCY ESTABLISHED FOR WATER PURCHASE DURING POSSIBLE DROUGHT
TCP TREATMENT RESERVE FOR TREATMENT CAPITAL AND O&M
SUSTAINABLE GROUNDWATER MANAGEMENT ACT RESERVE
(PERS ESTIMATE)
Water Enterprise- Revenue Assumptions (dollars in dollars) Water Enterprise - Expense Assumptions (dollars in thousands) Water 2/23/2026 9:18 AM
23
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24
Sewer Enterprise
The Sewer Enterprise Fund is projected to hav e a working capital bal ance of approximately $28.6 million at June 30, 2026. The City Council approved a seri es of rate increases for the Sewer Enterprise Fund beginning August 1, 2010. Rate increases are driven by the rising cost of treatment and capital improvements at the R egional Treatment facilit y, as well as the increased costs to operate new pump stations and the Sewer Tr eatment Water Reuse Facility (ST-WRF). Additionally, rate increases are necessary to meet bond covenants normally borne by development fees, which are projected to be insufficient to meet the City’s obligations during a portion of the forecast period.
A 3% rate
increase is included in each
year of the forecast period to keep pace with rising
operating, maintenance, and capital costs, and to maintain a sufficient fund balance for future
bonding capacity. An interfund loan is shown beginning
in 2025/26 of the forecast because it
is projected that the collection of development impact fees for Sewer Major Facilities will be insufficient to cover debt service payments. Starting in 2025/26, the rebate to customers
will be reduced by half to $3.65 per month to collect the funds necessary to cover the total debt service payment. The ability to continue rebating funds back to ratepayers will be monitored closely throughout the forecast period.
25
Actual Actual Actual Estimated Projected Projected Projected Projected Projected 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 BEGINNING WORKING CAPITAL 26,720 28,270 28,750 31,270 28,620 24,530 21,750 20,880 20,040
REVENUES
SEWER CHARGES 14,510 15,000 15,860 16,520 17,250 18,000 18,770 19,560 20,380 PRETREATMENT CHARGES 50 50 50 50 50 50 50 50 50
TOTAL REVENUES 14,560 15,050 15,910 16,570 17,300 18,050 18,820 19,610 20,430
EXPENDITURES
SALARIES 1,280 1,300 1,470 1,690 1,920 1,960 2,000 2,160 2,200 EXTRA HELP 0 0 10 20 20 20 20 20 20
OVERTIME 20 10 10 20 20 20 20 20 20
BENEFITS
RETIREMENT 250 270 320 400 400 380 400 430 420
HEALTH 200 210 240 310 330 350 370 400 430
OTHER 130 140 110 170 110 200 210 220 230
SERVICES, MATERIALS & SUPPLIES 4,840 5,100 5,790 6,430 8,110 8,340 8,250 8,480 8,730 FRESNO TREATMENT PLANT 3,770 4, 730 4,490 4,900 5,040 5,190 5,340 5,490 5,650 CLOVIS TRMT/REUSE PLANT (ST-WRF) 2,380 2,510 2,720 2,810 3,020 3,140 3,260 3,390 3,520 DEBT SERVICE 1,220 1 ,22000 00000
CAPITAL 440 40 100 460 260 1,710 220 220 230
CAPITAL-FRESNO PLANT IMPROVEMENTS 1,080 2,210 730 2,000 2,000 1,000 1,000 1,000 1,000 TOTAL EXPENDITURES 15,610 17,740 15, 990 19,210 21,230 22,310 21,090 21,830 22,450
OTHER REVENUE AND EXPENSE
INTEREST 860 1,670 1,920 1,660 1,160 1,060 980 960 950
GRANTS/MISC/SALE OF ASSETS/REFUNDS 40 190 410 60 60 50 50 50 50 BOND COVERAGE CHARGES/(REBATE) 0000 1 ,850 1 ,850 1 ,850 1 ,850 1,850 900 1,860 2,330 1,720 3,070 2,960 2,880 2,860 2,850
TRANSFERS IN-DEBT SERVICE 430 4 3000 00000
TRANSFERS OUT-CAPITAL 0 (390) (500) (500) 00000
FROM DEVELOPER-PLANT CAPITAL IMPROV 270 270 270 270 270 270 270 270 270 INTERFUND (LOANS)/REPAYMENT 0 0 0 (1,500) (3,000) (1,500) (1,500) (1,500) (1,500) (INC)/USE OF FRESNO PLANT CAP RESERVE 1,000 1,000 500 0 (500) (250) (250) (250) (250) ENDING WORKING CAPITAL 28,270 28,750 31,270 28,620 24,530 21,750 20,880 20,040 19,390 RESERVE FOR FRESNO PLANT CAPITAL 1,750 750 250 250 750 1,000 1,250 1,500 1,750 RESERVE FOR RATE STABILIZATION 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
CITY OF CLOVIS
Sewer Enterprise - Financial Forecast (dollars in thousands) Water 2/27/2026 8:32 AM
26
Current Charges: Population New Units Additional Residential: 2025/26 Per Unit Bond Charge Per Pretreatment Per Increase Per Year Commercial Per Month Unit Per Month Unit Per Month 2,000 750 $42,000 $24.88 $7.30 $0.06
Rate Rebate: ($3.65) Beginning FY 25/26
Rate Increase:* 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Percentage 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
Revised Monthly Rate $24.88 $25.63 $26.40 $27.19 $28.00 $28.84 Interest: 3.00% OF PREVIOUS YEAR'S WORKING CAPITAL
* Rate Increase: Note: The Council can approve up to a 3% annual rate increase if deemed necessary.
Salaries: (CPWEA) 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 7/1 3.00% 2.00% 2.00% 2.00% 2.00% 2.00%
SALARY BASE $1,690 $1,920 $1,960 $2,000 $2,040 $2,200
Additional employee $120
Extra Help: FLAT FOR NEXT FIVE YEARS
Overtime: FLAT FOR NEXT FIVE YEARS
Retirement: 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31
29.37% 27.75% 27.70% 28.60% 28.10% 27.50%
PERS Cost Sharing: -8.40% -8.40% -8.40% -8.40% -8.40% -8.40% Health: INCREASE PER YEAR 7.00%
Other Benefits: -WORKERS COMP 3.68% FOR CPWEA 2.00% FOR ADMIN -MEDICARE 1.45% OF SALARIES
-DEFERRED COMP/SICK LEAVE/OTHE 5.25% OF SALARIES
Other SMS: INCREASE BY CPI 2.90%
Rental of the New Corp Yard-Beginning in 2002/03 $320
Clovis Treatment/Reuse Plant Operations-Beginning 1/1/2009 $1,000 Regional Treatment Plant: Annual payment for original plant buy-in plus O&M costs.
Adjusted for CPI and per capita amount 2.90%
Capital Outlay: FUTURE YEARS @ $200
- ADJUSTED BY CPI 2.90%
Cap-Plant Improvements: Based on estimates from the City of Fresno for sewer main and plant refurbishments Transfers Out: Out for on-going capital improvements-per Five Year CIP Interfund Loans: Temporary cash loans to conform with various bond covenants (PERS ESTIMATE)
Sewer Enterprise - Revenue Assumptions (dollars in dollars) Sewer Enterprise - Expense Assumptions (dollars in thousands) Water 2/23/2026 9:38 AM
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28
Community Sanitation Enterprise
The Community Sanitation Enterprise Fund is projected to finish the current fiscal year with a working capital balance of approximately $10.8 million
at June 30, 2026. The fund will
experience a small decline in reserves over the next few years due to increased administration and personnel costs, design and construction cost
s for landfill expansion at the tail end of the
forecast, fleet renewal charges, and ongoing costs
for the recycling and organic
contracts. Reserves are expected to remain stable throughout the five-year forecast.
A 4% annual increase, or portion thereof, for Solid Waste was approved by the City Council in November 2004, and a 4% annual increase for street sweeping was approved in 2021. Council can implement these annual increases
as necessary. A 4% annual increase is projected in the
forecast period for Solid
Waste, Street Sweeping, Recycling, and Organics operations. These annual increases will assist in keeping the reserves stable throughout the five-year forecast.
Staff will continue to monitor fund levels to determine if assessing the full 4% increase is warranted.
29
Actual Actual Actu al Estimated Pro jected Pro jected Pro jected Pro jected Pro jected 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 BEGINNING WORKING CAPITAL 13,390 13,100 12,820 13,000 10,860 8,230 7,380 7,290 7,380
REVENUES
REFUSE CHARGES 18,100 18,890 20,230 20,950 21,960 23,010 24,110 25,260 26,460 RECYCLING CHARGES 2,210 2,320 2,510 2,640 2,750 2,880 3,020 3,160 3,310 GREEN WASTE CHARGES 2,680 2,820 2,990 3,130 3,290 3,460 3,630 3,810 4,000 STREET SWEEPING CHARGES 1,570 1, 660 1,770 1,840 1,920 2, 010 2,100 2,200 2,300 TOTAL REVENUES 24,560 25,690 27,500 28,560 29,920 31,360 32,860 34,430 36,070
EXPENDITURES
SALARIES 4,400 4,440 4,740 5,220 5,850 5,960 6,160 6,280 6,410 EXTRA HELP 90 10 10 40 40 40 40 40 40
OVERTIME 390 440 460 460 460 460 460 460 460
BENEFITS
RETIREMENT 870 930 1,070 1,200 1,180 1,150 1,240 1,240 1,220 HEALTH 810 870 890 1,020 1,090 1,170 1,250 1,340 1,430
OTHER 530 360 460 520 600 610 630 640 650
SERVICES, MATERIALS & SUPPLIES 10,600 11,790 13,170 13,760 14,150 14,560 14,660 15,090 15,530 RECYCLING 1,610 1,790 1,940 2,400 2,470 2,540 2,610 2,690 2,770 GREEN WASTE PROGRAM 2,010 2,200 2,370 2,800 2,890 2,980 3,070 3,160 3,260 STREET SWEEPING 1,810 2,110 2, 170 2,130 2,190 2,250 2,320 2,390 2,460 LANDFILL CLOSURE 340 350 390 400 410 420 430 440 450
CAPITAL 1,190 600 650 1,230 1,280 650 650 650 650
LANDFILL IMPROVEMENTS 720 1,020 170 520 790 250 250 750 1,250 TOTAL EXPENDITURES 25,370 26,910 28,490 31,700 33,400 33,040 33, 770 35,170 36,580
OTHER REVENUE AND EXPENSE
INTEREST 270 530 560 550 550 480 470 480 500
GRANTS/MISC/SALE OF ASSETS 100 260 460 300 150 150 150 150 150 370 790 1,020 850 700 630 620 630 650
TRANSFERS 150 150 150 150 150 200 200 200 200
ENDING WORKING CAPITAL 13,100 12,820 13,000 10,860 8,230 7,380 7,290 7,380 7,720 RESERVE FOR CLOSURE 5,345 5,695 6, 085 6,485 6,895 7,315 7,745 8,185 8,635 RESERVE FOR LIABILITY INS 1,000 1,000 1, 000 1,000 1,000 1,000 1,000 1,000 1,000 Note: Maintain minimum ending working capital at 15% of expenditures or the bond covenant requirements.CITY OF CLOVIS Community Sanitation - Financial Forecast (dollars in thousands) Refuse and Street Cleaning 2/27/2026 8:39 AM
30
Curren
t Charges: New Units Refuse Recycling Green Waste Street Cleaning Per Year Per Month Per Month Per Month Per Month
750 $28.60 $4.98 $7.31 $3.09
2025/26 2026/27 2027/28 2028/29 2029/30 2030/31
Rate Increase/(Decrease): 7/1 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% Rate Increase: Based on Council approved 4% annual rate increase unless not necessary.
Refuse: $28.60 $29.74 $30.93 $32.17 $33.46 $34.80
Recycling: $4.98 $5.18 $5.39 $5.60 $5.83 $6.06
Green Waste: $7.31 $7.60 $7.91 $8.22 $8.55 $8.89
Street Cleaning: $3.09 $3.21 $3.34 $3.48 $3.61 $3.76
Interest: 3.00% OF PREVIOUS YEAR'S WORKING CAPITAL
Salaries: (CPWEA) 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 7/1 3.00% 2.00% 2.00% 2.00% 2.00% 2.00%
Salary Base: $5,220 $5,720 $5,960 $6,080 $6,280 $6,410
Additional Personnel: Res/Comm $125 $75
Extra Help: $40 for Operations per year
Overtime: FLAT FOR FUTURE YEARS
Retirement: 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31
29.37% 27.75% 27.70% 28.60% 28.10% 27.50%
PERS Cost Sharing: -8.40% -8.40% -8.40% -8.40% -8.40% -8.40% Health: INCREASE PER YEAR 7.00%
Other Benefits: -WORKERS COMP 3.68% FOR CPWEA 2.00% FOR ADMIN -MEDICARE 1.45% OF SALARIES
-DEFERRED COMP/SICK LEAVE/OTHER 5.25% OF SALARIES
Other SMS: INCREASE BY CPI 2.90%
Rental of the Corp Yard beginning 2002/03 $320 per year Capital Outlay: Flat for future years $650
Transfers: In-For Toters $200 /year
Reserve For Closure: FROM 98/99, INCREASE BY CPI 2.90%
(PERS ESTIMATE)
Community Sanitation -Revenue Assumptions (dollars in dollars) Community Sanitation -Expense Assumptions (dollars in thousands) Refuse and Street Cleaning 2/27/2026 8:39 AM
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32
Transit Enterprise
The Transit Fund is projected to maintain suffi cient revenues throughout the forecast period to support ongoing operational and capital requirem ents. Primary funding is provided through a combination of Transportation Developm ent Act (TDA) revenues, including Local Transportation Funds (LTF) and Stat e Transit Assistance (STA), as well as Federal Transit Administration (FTA) funding. These revenues are allocated based on population, taxable sales, performance measures, and federal eligibility requirements, and they support day-to-day operations and capital investments, including vehicle purchases and system improvements.
The City is advancing plans to secure land for a future Transit Operations Center to support long-term operational needs and r equired zero-emission infrastructure. The land acquisition is
anticipated to be funded through t he State Transit and Intercity Rail Capital Program (TIRCP).
Regional transit funding also includes pr oceeds from the Fresno County Measure C transportation sales tax, which is scheduled to expi re in 2027. Clovis Transit is concurrently monitoring potential Transportation Development Act reforms re lated to farebox recovery requirements.
As regional, state,
and federal funding programs and
statutory requirements continue to
evolve, Clovis Transit will evaluate service levels and funding strategies, making adjustments as necessary to maintain fiscal stability and regulatory compliance. Consistent with prior years, any Local Transportation Fund and State Transit Assistance revenues received but not yet expended are recorded as deferred revenue to
ensure accounting compliance and fiscal
transparency.
33
Actual Actual Actual Estimated Pro jected Pro jected Pro jected Pro jected Pro jected 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 BEGINNING WORKING CAPITAL 6 50 3 40 4 40 6 8000000
REVENUES
MEASURE C FUNDS * 2,190 2,170 2,150 2,180 2,220 2,260 2,310 2,360 2,410 LOCAL TRANSPORTATION FUNDS (LTF) 5,340 6,780 8,080 8,760 9,740 8,910 9,370 9,710 10,050 STATE TRANSIT ASSISTANCE (STA) ** 200 2,190 630 12,790 3,810 1,000 1,050 1,100 1,160 FEDERAL TRANSIT ADMINISTRATION (FTA) 0 0 0 5,280 2,750 3,500 3,570 3,640 3,710 OTHER (Fares, Advertising, Trolley Rents) 70 110 70 10 10 10 10 10 10 TOTAL REVENUES 7,800 11,250 10,930 29,020 18,530 15,680 16,310 16,820 17,340
EXPENDITURES
SALARIES 1,890 2,050 2,340 3,130 3,200 3,260 3,330 3,400 3,470 EXTRA HELP 1,540 1,760 1,840 3,250 3,410 3,580 3,760 3,950 4,150 OVERTIME 60 70 90 100 100 110 120 130 140
BENEFITS
RETIREMENT 380 410 500 660 620 630 670 670 660
HEALTH 350 430 550 580 620 660 710 760 810
OTHER 560 620 670 1,120 1,090 1,130 1,210 1,240 1,270
SERVICES, MATERIALS & SUPPLIES 3,100 3,730 4,300 5,160 5,420 5,530 5,640 5,750 5,870 CAPITAL-OTHER 170 450 50 890 80 200 200 200 200
CAPITAL-BUSES 110 2,100 700 5,300 680 1,000 1,020 1,040 1,060 TOTAL EXPENDITURES 8,160 11,620 11,040 20,190 15,220 16,100 16,660 17,140 17,630
OTHER REVENUE AND EXPENSE
GRANTS 80 300 110 820 70 170 170 170 170
INTEREST (30) 170 240 160 290 250 180 150 120
50 470 350 980 360 420 350 320 290
TRANSFERS (TRANSIT STATION) 0 0 0 (10,490) (3,670) 0000 ENDING WORKING CAPITAL 340 4 40 6 80000000
DEFERRED REVENUE 10,820 12,490 12,510 9,520 8,310 6,060 4,920 3,850 2,870
CITY OF CLOVIS
Transit - Financial Forecast (dollars in thousands)
Transit 2/27/2026 8:45 AM
34
Transit Revenue: 2.00%
LTF revenue is projected to grow by its historical average increase 5.00% Other revenue is projected to grow by CPI 2.90%
Interest: 3.00% OF PREVIOUS YEAR'S WORKING CAPITAL
Deferred Revenue: REVENUE RECEIVED AND NOT SPENT
Salaries: 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 7/1 3.00% 2.00% 2.00% 2.00% 2.00% 2.00%
Salary Base: $3,130 $3,200 $3,260 $3,330 $3,400 $3,470
Additional Personnel:
Extra Help: INCREASE PER YEAR FOR ADDITIONAL DEMAND IN ROUNDUP TRANSIT SERVICES 5.00% Overtime: INCREASE BY CPI 2.90%
Retirement: 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31
29.37% 27.75% 27.70% 28.60% 28.10% 27.50%
PERS Cost Sharing: -8.40% -8.40% -8.40% -8.40% -8.40% -8.40% Health: INCREASE PER YEAR 7.00%
Other Benefits: -WORKERS COMP 4.00% OF SALARIES 1.56% FOR ADMIN -MEDICARE 1.45% OF SALARIES and EXTRA HELP
-DEFERRED COMP/SICK LEAVE/OTHER 5.25% OF SALARIES
Other SMS: INCREASE BY CPI 2.90%
Ca
pital Outlay: BASED ON BEST ESTIMATES FOR BUSES AND OTHER ADJUSTED BY CPI 2.90%
(PERS ESTIMATE)
** State Transit Assistance, for fiscal years 2019/20 through 2025/26, a transit agency may expend funds apportioned on any operating or capital costs to maintain transit service levels.
For fiscal years 2025/26 and 2026/27, the significant increase is due to one-time funds from the Transit and Intercity Rail Capital Program (TIRCP).**
Measure C revenue is projected to grow at its historical average annual increase. * Although the Measure C sales tax may expire in 2027, currently authorized funds are anticipated to remain available until fully expended; however, the exact duration of those funds is unknown. As a result, projections for FY 2027/28 through FY 2030/31 are subject to availability and may be adjusted based on actual receipts and remaining balances.* Transit- Revenue Assumptions
Transit- Expense Assumptions
Transit 2/27/2026 8:45 AM
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36
Planning and Development Services Enterprise
The Planning and Developm ent Services (PDS) Department transitioned into an Enterprise Fund in 2012/13, allowing services to be adjus ted as demand fluctuates. The 2026/27 forecast estimates the construction of 750 residential uni ts, which falls slightly below our 20-year historical average of 800 units per year. For the 2025/26 fiscal year, an estimated 700 residential units (420 multi-family, 280 single-family) are projected to be issued. This slight dip is primarily due to the continuat ion of higher interest rates and recent inflationary pressures suppressing consumer housing demand.
Revenues fluctuate based on construction valuation for different project types; census housing unit numbers are just one indicator. Commercia l activity, in total numbers issued, has performed better this year than our historic average, with high er permit volumes but lower valuations. This is due to fewer applications for
large-scale projects (like hotels) this year, but
more applications overall, typically for smalle r projec ts such as t enant improvements. The 10-
year moving average for commercial valuation fr om 2015/16 through 2024/25 is $51.8 million .
For FY 2025/26, we have already recorded $22 millio
n in commercial valuatio
n, with
expectations of reaching $60 million by year-end. If achieved, the new 10-year moving average
would increase by $2.7 million to $54.5 million at fiscal year-end.
The current Measure C transporta tion tax will expire in 2027. It is currently unknown what the succession alternatives are fo
r Measure C, but PDS is moni t
oring the situation and will
evaluate impacts and timing on both project funding and staff, as well as investigate potential sources of replacement funding. Currently, authorized Measure C funds will remain available until fully expended; however, we have not yet estimated their duration. The current projections for our Community Investment Program for FY 2027/28 and beyond do not reflect any changes to our Measure C funding and will be adjust
ed subject to funding availability.
The PDS Department is projected to
finish 2025/26 with a working capital balance of
approximately $10.1 million. The forecast reflects that the PDS Department will maintain a prudent reserve that allows for immediate adjustments should they become necessary. 37
CITY OF CLOVIS
Planning & Development Services - Financial Forecast (dollars in thousands) RESIDENTIAL UNITS PER YEAR 658 610 637 700 750 750 750 750 750 Actual Actual Actual Estimated Pro jected Pro jected Pro jected Pro jected Pro jected 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 BEGINNING WORKING CAPITAL 9,890 9,520 9,080 9,250 10,190 11,120 11,750 12,030 12,120
REVENUES
BUILDING PERMITS 3,650 3,580 4,000 5,680 5,230 5,380 5,410 5,250 5,240 PLANNING FEES 1,300 2,120 1,840 1,810 1,980 2,160 2,110 2,190 2,270 GENERAL PLAN CONSULTANT 320 360 890 2,740 1,870 730 720 720 720 ENGINEERING FEES 2,410 1,720 2,400 2,670 2,710 2,780 2,850 2,920 2,990 CAPITAL IMPROVEMENT CHARGES 3,840 4,000 4,150 4,080 4,860 4,980 5,100 5,230 5,360 TOTAL REVENUES 11,520 11,780 13,280 16,980 16,650 16,030 16,190 16,310 16,580
EXPENDITURES
SALARIES 5,990 6,050 6,170 6,940 8,010 8,380 8,630 8,800 8,980 EXTRA HELP 120 150 110 50 60 60 60 60 60
OVERTIME 80 40 80 140 100 100 100 100 100
BENEFITS
RETIREMENT 1,150 1,210 1,310 1,340 1,630 1,630 1,760 1,750 1,730 HEALTH 870 850 820 890 980 1,050 1,120 1,200 1,280
OTHER 440 450 460 590 600 610 620 630 640
SERVICES, MATERIALS & SUPPLIES 3,840 3,970 3,860 4,620 4,020 4,100 4,180 4,260 4,350 GENERAL PLAN CONSULTANT 320 360 890 2,040 1,500 650 650 650 650 CAPITAL 10 160 10 160 50 50 50 50 50
TOTAL EXPENDITURES 12,820 13,240 13,710 16,770 16,950 16,630 17,170 17,500 17,840
OTHER REVENUE AND EXPENSE
INTEREST 260 510 570 600 600 590 610 620 620
OTHER REVENUES/GRANTS 370 140 100 80 80 80 80 80 80
TRANSFERS FROM GENERAL FUND 300 370 350 350 350 350 350 350 350 TRANSFERS FROM MEASURE Y FUND 0 0 0 130 270 280 290 300 310 TOTAL ADDITIONAL ITEMS 930 1,020 1,020 1,160 1,300 1,300 1,330 1,350 1,360 NET INC/(DEC) TO WORKING CAPITAL (370) (440) 590 1,370 1,000 700 350 160 100
OTHER ITEMS
(USE OF)/ADDITION TO EMERGENCY RESERVE 0 0 420 430 70 70 70 70 70 ENDING WORKING CAPITAL 9,520 9,080 9,250 10,190 11,120 11,750 12,030 12,120 12,150 Emergency Reserve - (Dollars) 2,500 2,500 2,920 3,350 3,420 3,490 3,560 3,630 3,700 Emergency Reserve as a % of Expenditures 19.5% 18.9% 21.3% 20.0% 20.2% 21.0% 20.7% 20.7% 20.7% Planning Development Services 2/23/2026 9:48 AM
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Planning & Development Services - Revenue Assumptions (dollars in dollars ) 2024/25 (Act.) 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Residential Units Per Year: 637 700 750 750 750 750 750 Non-Residential Valuation %: 20% 20% 20% 20% 20% 20% 20% Averages based on two years actuals and estimate to close Average Permit Fees Per Unit: Building Planning Engineering International Code Council 2% Increase:
$5,600 $2,500 $2,900 2025/26 2028/29 2031/32
CPI: 2.90%
2024/25 (Act.) 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Planning Program Fee (Staff): $1,010,000 $1,160,000 $1,370,000 $1,410,000 $1,450,000 $1,490,000 $1,530,000 Gen. Plan Consultant Admin Fee: $0 $540,000 $240,000 $80,000 $70,000 $70,000 $70,000 Plan. Prgm. Fee (Consultant): $890,000 $2,200,000 $1,630,000 $650,000 $650,000 $650,000 $650,000 Other Planning Fees: $830,000 $650,000 $610,000 $750,000 $660,000 $700,000 $740,000 Total FY $2,730,000 $4,550,000 $3,850,000 $2,890,000 $2,830,000 $2,910,000 $2,990,000 Capital Improvement Charges: BASED ON HOURLY RATE CHANGES (AS NEEDED) Interest: 3.00% OF PREVIOUS YEAR'S WORKING CAPITAL
Other Revenues: INCREASE BY CPI 2.90%
Grants: BASED ON AWARDED GRANTS
Planning & Development Services - Expense Assumptions (dollars in thousands) Salaries: (CPTA) 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 7/1 3.00% 2.00% 2.00% 2.00% 2.00% 2.00%
Salary Base: $8,060 $8,220 $8,380 $8,550 $8,800 $8,980
Additional Personnel: $80
Extra Help: $50 $60 $60 $60 $60 $60
Overtime: WILL REMAIN FLAT THROUGHOUT PROJECTION YEARS
Retirement: 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31
29.37% 27.75% 27.70% 28.60% 28.10% 27.50%
PERS Cost Sharing: -8.40% -8.40% -8.40% -8.40% -8.40% -8.40% Health: INCREASE PER YEAR 7.00%
Other Benefits & SMS: INCREASE BY CPI 2.90%
General Plan Consultant: 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 General Plan Update & Housing Element $1,600 $1,000 $100 $100 $100 $100 Misc. Services (Legal, Housing, Design, Engr) $280 $280 $280 $280 $280 $280 Specific Plan/Master Plan Prep/Updates $0 $0 $0 $0 $0 $0 Utility Plans & Engineering Studies $100 $100 $100 $100 $100 $100 Planning Studies Guidelines $20 $0 $100 $100 $100 $100
LAFCO Budget Contribution $70 $70 $70 $70 $70 $70
Other Consulting $130 $180 $0 $0 $0 $0
Total FY $2,200 $1,630 $650 $650 $650 $650
Capital Outlay: BASED ON CAPITAL NEEDS PROJECTED FOR DEPARTMENT Transfers: GENERAL FUND DISCRETIONARY FUNDING $350 PER YEAR
MEASURE Y DISCRETIONARY FUNDING VARIES PER YEAR
(PERS ESTIMATE)
Planning Development Services 2/23/2026 9:48 AM
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INTERNAL SERVICE FUNDS
The Internal Service Fund group is projected to be self-balanc ing throughout the Five-Year Forecast. Since this group is funded by charges to the operating funds, issues that will affect the Internal Service Funds are dealt with in conjuncti on with an analysis of their impact on the operating funds. Each of the funds within the Internal Service Fund group is continually reviewed to
determine where more cost-effect ive programs and services can be utilized.
Expenditure reductions have been made in recent years to reduce the impact of cost-sharing on all other City operations.
DEBT SERVICE FUNDS
The Debt Service Fund group, out of necessity and legal obligation, will be fully funded in order to make the required debt payments.
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