Staff Report re FY 2025-26 CIP & Budget Update Page 1 of 10
STAFF REPORT
T
O: Mayor and Members of the City Council
FROM: Nathan Bassett, Administrative Services Director
Brad Donohue, Director of Public Works
VIA: Dan Barros, City Manager
MEETING DATE: February 11, 2026
SUBJECT: FY 2025-26 Mid-Year CIP Update, Financial Update, & Budget Amendment
RECOMMENDATION
Staff recommend that the City Council adopt the following:
RESOLUTION AM ENDING THE FISCAL YEAR 2025-26 BUDGET; APPROPRIATING FUNDS TO INCREASE THE GENERAL FUND (11) EXPENDITURE APPROPRIATION BY $722,904, STREET CAPITAL FUND (32) REVENUE AND EXPENDITURE APPROPRIATION BY $2,850,000, SEWER OPERATING FUND (81) EXPENDITURE APPROPRIATION BY $300,300, AND SEWER CAPITAL FUND (82) REVENUE AND EXPENDITURE APPROPRIATION BY $345,300; CARRYING OVER $17,644,618.06 OF UNSPENT PROJECT BUDGET TO FY 2025-26; AND AUTHORIZING THE ADDITION OF 1.0 FTE MANAGEMENT ANALYST I/II POSITION IN THE CITY MANAGER’S OFFICE, PURSUANT TO CEQA GUIDELINE 15378
COUNCIL ADOPTED VALUES
P
eriodic review of the Town’s CIP progress and financial condition aligns with the City Council adopted responsibility value. These reviews exemplify financial accountability, as well as public transparency through brief project scope and progress updates, project budget and spending summary, and explanation for budget amendments and project delays. They also allow the City Council to thoughtfully decide and direct staff whether to continue the current course or to shift priorities.
BACKGROUND
Annually, a mid -year CIP update and financial review is submitted to the City Council for consideration and discussion. This update includes information on the year-to-date project status, progress updates, and project budget and spending summaries. The CIP update for FY 2025-26 includes the creation of four (4) new projects between the Street Capital Fund and the Sewer Capital Fund, appropriation of grant funds and local match for one (1) project in the Street Capital Fund, and scope changes to two (2) projects in the Capital Improvements Fund.
AGENDA ITEM #4AMENDED
Staff Report re FY 2025-26 CIP & Budget Update Page 2 of 10 For the mid-year financial update, the City Council approved the FY 2025-26 budget on June 25, 2025, with $29.5 million in projected revenue and $30.1 million in expenditure across all funds.
The General Fund accounts for $24.2 million in revenue and $24.9 million in expenditure, including $291,000 for annual debt service. While the General Fund was budgeted with a deficit of $693,000, interest earnings were unbudgeted, and year -to-date accounted for $350,000 in General Fund revenue. The General Fund also has a healthy unassigned reserve balance of $18.6 million at the end of fiscal year 2025.
A
nnually, a mid -year financial review is submitted to the City Council for consideration and discussion. The review consists of a summary of the Town’s fiscal performance, fund availability, and departmental needs and accomplishments. The review also includes a discussion on potential overages and the use of potential savings, in accordance with Colma Administrative Code
4.01.210.
T
he mid-year financial review calculates the “mid-year ratio” and compares the results for multiple years. The “mid-year ratio” shows the likelihood that the Town will meet its budgetary goal for the year. This is also known as trend analysis.
City Council authorized the creation of the Management Analyst I/II/III position in the salary schedule on January 13, 2021. Addition of staff requires City Council approval, per Colma Administrative Code Section (I need a reference here).
AN
ALYSIS
FY 2025-26 CIP Update
The CIP update for FY 2025- 26 i ncludes creation of one (1) new project in the Street Capital Fund, appropriation of funds for one (1) project in the Street Capital Fund, and creation of three (3) n
ew projects in the Sewer Capital Fund, as well as carryover funding from FY 2024- 25 of $17,644,618.06, as shown in Table 1 on the next page, and Table 2 on page 4 of this report.
Th e focus of this section will be on providing status update changes as noted below, with further information on the CIP program to be presented during the FY 2026- 27 budget process . Staff have been working to review historical documentation to reconcile appropriations and will have more information on project closeouts during the budget process.
Capital Improvement Fund Updates
Staff are requesting to update the following project scopes in the Capital Improvement Fund and are not currently requesting additional appropriations for the expanded scopes. The additional scopes are noted with bolding and italics at the end of each description.
Facility Security Enhancements Phase II – New Program
Security enhancements throughout Town facilities are necessary and will not only aid in overall security but provide better functionality and operation for staff. The back entry/exit gate (Serramonte Boulevard) at Colma Police Department is approximately 20 years old and has become unreliable. The benefit of installing a comprehensive gate access system will give the Police Department complete control of which is able to enter the premises at any time through Staff Report re FY 2025-26 CIP & Budget Update Page 3 of 10 the Town’s Access Control System. The system would also be equipped with vehicle detection, a more user-friendly system for our Police Department vehicles. The Project will also include vehicle and new audio/visual detection equipment for the police department front entry gate system.
The project budget for this item is $100,000 and was funded by the General Fund in the FY 2025- 26 Adopted Budget.
Community Center Floor Refinishing and Install (Hardwood Floor)– New Program Every five to seven years the hardwood floor at the Colma Community Center are in need of a deep sanding and refinishing. Because the main auditorium has expanded it s use to host pickle ball activities, a pickle ball court will be painted on the floor prior to the floor finish is applied. The project will also include removing the carpet in the conference room (room adjacent to the main auditorium) and installing hardwood in lieu of carpet in kind with the main auditorium. The floor upgrade will allow for more facility flexibility when using or leasing out the Community Center Facility.
The Conference Room will receive new built -in cabinets, lighting and electronic enhancements , painting and conference room furniture.
The project budget for this item is $100,000 and was funded by the General Fund in the FY 2025- 26 Adopted Budget.
C
arryover Funding in Capital Improvement Fund
Staff have reconciled the FY 2024-25 budget and reviewed to determine the carryover amount, which is shown below in Table 1.
Table 1 – FY 2025-26 Capital Improvement Fund Carryover Funding Project Name Carryover Funding for
FY 2025-26
Colma Creek Channel Repairs $ 52,491.50
Colma Creek Trash Capture $ 6,345,715.15
Solar Panel Backup Install at Colma Community Center $ 13,926.56 Sterling Park Recreation Center – New Furnace $ 25,000.00 Colma Museum Repairs and Rehabilitation $ 29,255.00
Bark Park Upgrade $ 115,000.00
Town-Wide Branding $ 100,000.00
Financial Software Replacement $ 1,042,750.00
Storm Drain System Assessment & Mapping $ 160,347.02
Equipment Purchase & Replacement $109,037.89
Information Technology Upgrades $ 88,567.66
Waste Haulers Franchise $ 33,436.50
Facility Security Enhancement $ 189,856.50
Urban Tree Master Plan & Program $ 279,060.00
Capital Improvement Fund Carry Over Total $ 8,584,443.78 Staff Report re FY 2025-26 CIP & Budget Update Page 4 of 10 Street Capital Fund Updates
Two projects in the Street Capital Fund were previously approved with the grant funding accepted by the City Council and still need appropriation. The El Camino Real (ECR) Bicycle and Pedestrian Improvement Project, PA&ED Phase, was previously approved by City Council with a funding agreement executed on April 29, 2024, however the project’s $2,550,000 was not appropriated at the time of acceptance and needs to be appropriated now. The ECR (Segment A) - Climate Program Implementation Grant Technical Assistance (CPIGTA) project was also previously approved by City Council with a funding agreement executed June 18, 2025, and the project’s $300,000 in funding also needs to be appropriated.
The ECR Bicycle & Pedestrian Improvement Project budget requires a 10% match and includes a portion of road within the boundaries of the City of South San Francisco. Of the $2,550,000 that needs to be appropriated, $2,200,000 is for the segment within Colma, and requires a local match of $220,000, which staff are recommending taking from General Fund Unassigned Reserves with this action.
The ECR (Segment A) CPIGTA funding does not require local match funding.
Carryover Funding in Street Capital Fund
Staff have reconciled the FY 2024-25 budget for the Street Capital Fund and reviewed to determine the carryover amount, which is shown below in Table 2.
Table 2 – FY 2025-26 Street Capital Fund Carryover Funding Project Name Carryover Funding for
FY 2025-26
El Camino Real & Mission Crossing $ 180,000.00
Annual Roadway Rehab Program $ 521,582.14
Serramonte Blvd West Phase I $ 2,281,485.43
El Camino Real Segment B Design $ 670,000.00
El Camino Real Segment B Construction $ 5,800,000.00
El Camino Real Bicycle & Pedestrian Improvement Project (PSR-PDS) $ 738,779.21 El Camino Real Bicycle & Pedestrian Improvement Project (PA & ED) ($ 1,092,447.00) Lawndale High Visibility Crosswalk ($ 39,225.50)
Capital Improvement Fund Carry Over Total $ 9,060,174.28 Sewer Capital Fund Updates
Public Works staff have identified three projects that require funding in the current fiscal year, including the Sanitary Sewer Master Plan (SSMP) update, Sanitary Sewer (SS) Closed Circuit TV (CCTV) Inspection project, and SS System Smoke Testing (SSSST) project. The SS CCTV Inspections and SSSST projects are both required as part of maintenance of the SS System, and an update of the master plan is required every five (5) years. These projects will be the first capital projects initiated after the implementation of a new SS collections charge in Colma.
Staff Report re FY 2025-26 CIP & Budget Update Page 5 of 10 FY 2025-26 Financial Update
As shown in this report , the Town’s General Fund revenues and expenditures are on target to meet its operating goals. Total general fund revenues through December 31, 2025 represent 36% and total expenditure represents 5 3% of the FY 2025-26 Budget. When comparing the ratio to the prior three years, the charts show that both general fund revenues and expenditures ratios are consistent with prior years. Barring an extreme economic downturn, FY 2025-26 operations should be consistent with the prior years, and General Fund revenues should reach the $24.22 million revenue budget and expenditure s should be less than the $21.5 2 million expenditure budget. The chart for general fund revenue is shown above and expenditures are shown below.
Sal
es tax revenues for FY 2025-26 are lower than FY 2024-25 due to retro tax payments from auto dealers in the first six months of the year, but revenue is overall in line with FY 2023-24 receipts. Expenditures are generally in line with expectations, but staff are recommending a list CHART 1: MID-YEAR REVENUES TO FULL YEAR COMPARISON
$18.76 M
$7.23 M
(39%)
$25.21 M
$8.65 M
(34%)
$25.57 M
$10.17 M
(40%)
$24.22 M
$8.65 M
(36%)
$ 0. 00 M
$ 4. 00 M
$ 8. 00 M
$1 2.00 M
$1 6.00 M
$2 0.00 M
$2 4.00 M
$2 8.00 M
Thru
6/30 /23
Thru
1 2/ 31 / 22
Thru
6/30 /24
Thru
1 2/ 31 / 23
Thru
6/30 /25
Thru
1 2/ 31 / 24
2 5/ 26
Budget
Thru
1 2/ 31 / 25
General Fund Revenues
S al es Tax Cardroom Tax Other Revenues
CHART 3: MID-YEAR EXPENDITURE TO FULL YEAR COMPARISON
$17.06 M
$9.42 M
(55%)
$18.34 M
$10.18 M
(56%)
$19.17 M
$10.26 M
(51%)
$21.52 M
$11.50 M
(53%)
$ 0. 00 M
$ 4. 00 M
$ 8. 00 M
$1 2.00 M
$1 6.00 M
$2 0.00 M
$2 4.00 M
Thru
6/30 /23
Thru
1 2/ 31 / 22
Thru
6/30 /24
Thru
1 2/ 31 / 23
Thru
6/30 /25
Thru
1 2/ 31 / 24
2 5/ 26
Budget
Thru
1 2/ 31 / 25
General Fund Expenditures (by Departments)
Recreation Public Works & Planning Public Safety General Government Staff Report re FY 2025-26 CIP & Budget Update Page 6 of 10 of amendments to cover salary and benefit rate changes, expenses which are trending higher than average this year, and a few other items.
Ne
w Position Request
Ci
ty Council authorized the creation of the Management Analyst I/II/III position in the salary schedule on January 13, 2021. The City Manager’s Office has seen an increased need for staff time related to staff reports, management of the CIP program, and overall administrative capabilities within the department. Staff have seen an increase in the need for reporting, including those mandated by the federal and State of California governments. The Town also will be embarking on multiple large capital projects over the next few years, including replacement of the ERP and phone systems. As such, adding a Management Analyst to assist the City Manager and other staff with management and administrative duties will help relieve some of the pressure from other staff and reduce the time needed to produce Town reporting.
R
easons For the Recommended Action/Findings
Receive feedback from the City Council regarding the mid -year budget financial review and update. Assessing the need to amend the budget to prepare for new programs or changes in operation. FY2024- 25, Staff identified 15 main operating changes , 5 capital changes , and consideration of capital funding carryover funding from FY 2024-25. • C
ity Council Salaries and Expenses – In October 2024, the City Council adopted an Ordinance 824 to amend Colma Municipal Code Section 1.04.010 to increase City Council Member salaries from $961 per month to $1,249 per month, effective during FY 2024-25.
The FY 2025-26 Adopted Budget did not include an adjustment to account for this change, and staff are seeking an additional $17,324 to cover the additional cost. Staff are also requesting an additional $14,500 to increase the travel budget by $2,000 and City Council Expense accounts by $2,500 to a total of $5,000 per Council Member per year to cover anticipated costs for City Council Member travel and community expenses . The total increase for the City Council requested is $31,824.
• City Attorney Professional Services Contract – There has been an increase in professional service expenses from the City Attorney contract, primarily due to an increase staff driven work including planning ordinances, master plans and policies, and Public Records Act (PRA) requests requiring legal review. The PRA requests are that require legal review include contract requests, email review requests, and police officer body -ca m
fo
otage requests. Staff are recommending an additional $90,000 for the City Attorney Professional Services contract to meet the increased demand from staff for legal review within the Town.
• Retirement Health Savings Account ( RHSA) and Public Employee Reti rement System (PERS) Benefit Adjustments – On February 12, 2025, City Council adopted resolution 2025-05, which increased the employer contribution rate from 1.5% to 2.5% for retirement health savings accounts. This change in benefit cost was not reflected in the budget request based on current year actuals, and staff are requesting additional funds for departments more heavily impacted by this oversight, as follows: $6,025 for the City Manager’s Office; $1,403 for Human Resources; $8,000 for Finance; $4,000 for Police Administration; and $32,000 for Police Patrol, $32,000, for a total of $51,428 in RHSA Staff Report re FY 2025-26 CIP & Budget Update Page 7 of 10 funding. Staff are also requesting an additional $105,660 for PERS funding in Police Administration, due to this line already being over budget by $65,660. Approval of both requests would add $157,088 to the FY 2025-26 Budget for staff benefits. • City Manager’s Office Departmental Expenses – Staff are requesting an additional $2,817 for Special Department Expenses based on current year spending trends for Town events and needs.
• HR Software – In 2022, Colma signed an agreement with NeoGov, an HR Software services company that was not budgeted for in FY 2025- 26. Staff are requesting an additional $18,920 for the annual subscription expense for this software, which will provide opportunity for posting job openings on the governmentjobs.com website, as well as update staff’s performance evaluation, benefits tracking, and other items. • IT Services Contract – Staff are requesting an additional $28,000 for the Town’s contract with Stepford Inc due to higher than anticipated contract services costs with the City’s IT provider, primarily due to labor costs related to replacement of firewall and server equipment, and other ongoing IT projects. Stepford has also been assisting with replacement of existing IT hardware.
• Liability Insurance Premiums – Staff are requesting an additional $24,255 for the Town’s liability insurance premiums to reflect current year premium rates, based on invoices paid year to date.
• Housing Element Implementation Programs – The Planning Department needs an additional $60,000 to meet State Housing and Community Development ongoing compliance requirements for the Housing Element Implementation Programs, and for updates to the Accessory Dwelling Unit (ADU) ordinances based on new legislation from the 2024 and 2025 legislative sessions.
• MTC TOC Policy Updates – Staff are requesting an additional $20,000 for Planning staff costs due to working with MTC staff and its consultants to adhere to its requirements pertaining to land use density, affordable housing, BART station access, and its parking.
There has been progress on these four new requirements by MTC - compliance with the new requirements is scheduled for late 2027. Staff will continue their compliance efforts, and it’s anticipated that the efforts will continue for the rest of the fiscal year and the 26/27 fiscal year.
• GIS – Staff are requesting an additional $45,000 for the GIS team to provide a list of GIS layers with information on the data in those layers and for all layers to be listed in the parcel viewer. It is anticipated that the efforts, to a lesser degree, will continue for the next fiscal year.
• Zoning Amendment – Staff are requesting an additional $25,000 to cover staff’s efforts for the required updates to Town’s zoning due to changes in state and regional policies pertaining to housing and required higher density. It is anticipated that the efforts will continue for the next fiscal year.
Staff Report re FY 2025-26 CIP & Budget Update Page 8 of 10 • Transfers to Street Capital Fund – Staff are requesting an additional $220,000 transfer from the General Fund to the Street Capital Fund to cover the local match portion of a Measure W Grant for the El Camino Real Bicycle and Pedestrian Improvement Project.
These funds are intended to supplement grant funds from Measure W that were approved by City Council in FY 2023-24.
• Transfers to Sewer Capital Fund – Staff are requesting to add a $ 300,300 transfer from Sewer Operating Fund to Sewer Capital Fund to initiate three (3) new capital projects. This would leave approximately $100,000 in fund balance in the Sewer Operating Fund to initiate the Sewer Capital program funding.
• S
anitary Sewer Management Plan (SSMP) – Staff are requesting to add $45,000 for project initiation in Fund 82. Every 5 years the Town of Colma is required to update their SSMP. The SSMP is a mandatory, comprehensive plan, developed by the Colma Public Works/Engineering Department to properly manage, operate, and maintai n the Town’s sewer systems, aiming to prevent and mitigate sewage spills (SSOs). The plan will also address the updates and development of an emergency response plan along with defining various operation and maintenance programs. Funds for this item would come from the existing fund balance in Fund 82.
• Sanitary Sewer CCTV Inspection – Staff are requesting to add $177,100 for project initiation. Per the requirements of our current SSMP, the Town is required to inspect our sanitary sewer mains. Sanitary Sewer Closed-Circuit Television (CCTV) Inspection is a non- invasive, specialized, and often mandated diagnostic process used to assess the internal condition of sewer pipes. It involves sending a remotely controlled, high-definition camer a
o
n a crawler or rod through sewer lines to record video footage of the interior, looking for issues like root intrusion, cracking, leaks, and grease buildup. Funds for this item would be transferred in from the Sewer Operating Fund.
• Sanity Sewer System Smoke Testing – Staff are requesting to add $123,200 for project initiation. Per the requirements of our current SSMP, the Town is required to inspect our sanitary sewer mains. Sanitary system smoke-testing is a routine, non-invasive maintenance method to identify structural defects, leaks, and illegal connections in the sewer system. It involves blowing non -toxic, white, or grey smoke into sewer manholes to detect where the smoke escapes, which indicates points of "inflow and infiltration" (I & I) where rainwater or groundwater enters the system. Funds for this item would be transferred in from the Sewer Operating Fund.
• El Camino Real (ECR) Bicycle and Pedestrian Improvement Project - PA&ED – Staff are requesting an appropriation of $2,550,000 for Measure W Grant funded project phase of the redesign of El Camino Real in Colma and part of South San Francisco. This project previously went to City Council for approval of the project scope and funding agreement and needs accompanying appropriation. The funding agreement was executed on April 29, 2024.
• El Camino Real (Segment A) - Climate Program Implementation Grant Technical Assistance – Staff are requesting an appropriation of $300,000 for an Metropolitan Transportation Commission (MTC) grant for the redesign of a portion of El Camino Real, related to climate program implementation. This project previously went to Staff Report re FY 2025-26 CIP & Budget Update Page 9 of 10 City Council for approval of the project scope and funding agreement and needs accompanying appropriation. The funding agreement was executed June 18, 2025. • FY 2024-25 CIP Carryover Funding – In accordance with Colma Administrative Code
4.01.070, staff are informing the City Council of $17,644,618 in unspent project budgets from FY 2024-25 that will be carried over to FY 2025-26; with $8,584,444 allocated to the Capital Improvement Fund, and $9,060,174 allocated to the Street Capital Fund.
Specific allocations are presented in Tables 1 and 2 on pages 3 and 4 of this staff report. • Management Analyst I/II – Staff are requesting authorization of 1.0 FTE Management Analyst I/II in the City Manager’s office to assist with an increase in staff
reports, management of the CIP program, and overall administrative capabilities within the department. Placement into the specific job class, Management Analyst I or II, would be based upon the applicant’s qualifications and at the discretion of the City Manager.
Currently, the cost of a Management Analyst II position at Step 3 is approximately $127,026, with an additional $72,404 for benefits, for a fully loaded cost of $199,430 per year. Staff anticipate that the position would start in May 2026, if approved.
E
NVIRONMENTAL
The City Council’s adoption of the resolution is not a project under the California Environmental Quality Act pursuant to Guideline 15378 as it is more akin to a governmental fiscal activity without any commitment to any specific project. Although certain CIP projects are being provided more funding under the resolution, all projects are undergoing independent CEQA review and that analysis will be available prior to any discretionary action to approve the actual project.
FISCAL IMPACT
Acceptance of the report has no fiscal impact. Approval of the budget amendment will increase General Fund (11) expenditures by $722,904, Street Capital Fund (32) revenue and expenditures by $2,850,000, Sewer Operating Fund (81) expenditures by $305,000, and Sewer Capital Fund (82) revenue by $300,300 and expenditures by $345,300.
The General Fund has $12,600,904 in unassigned fund balance as of December 31, 2025, which would be reduced by the requested amount if these amendments are approved. Staff would like to note that the fund balance tends to trend lower toward the end of the calendar year while awaiting tax receipt distributions from the state and county from the final quarter of the year , and that staff anticipate the General Fund unassigned fund balance to trend higher in the second half of the fiscal year.
The Management Analyst II position being requested would cost $199,430 per year based on a salary offer at Step 3, split between a salary of $127,025 per year, and $72,404 for fringe benefits.
Staff anticipate that the position would start in May 2026, with an FY 2025-26 expense of $33,238.
This expense would be offset in the City Manager’s Office by a vacancy earlier in FY 2025- 26 in the Administrative Services Director position, which provided savings of approximately $58,000.
Staff Report re FY 2025-26 CIP & Budget Update Page 10 of 10 AL
TERNATIVES
The City Council could choose not to adopt the resolution. Doing so is not recommended, because it will not allow the necessary adjustments for revenue projections and expenditure allocations based on real-time data.
CONCLUSION
Staff recommend that the City Council receive this information and adopt a resolution on the FY2025-26 Mid- Year Budget Review and financial update to amend the FY 2025- 26 Adopted Budget.
ATTACHMENTS
A. Resolution
Res. 2026-XX, 2025-26 Budget Amendment Page 1 of 5
RESOLUTION NO. 2026-__
OF THE CITY COUNCIL OF THE TOWN OF COLMA
RESOLUTION AMENDING THE FISCAL YEAR 2025-26 BUDGET; APPROPRIATING FUNDS TO INCREASE THE GENERAL FUND (11) EXPENDITURE APPROPRIATION BY $722,904, STREET CAPITAL FUND (32) REVENUE AND EXPENDITURE APPROPRIATION BY $2,850,000, SEWER OPERATING FUND (81) EXPENDITURE APPROPRIATION BY $300,300, AND SEWER CAPITAL FUND (82) REVENUE AND EXPENDITURE APPROPRIATION BY $345,300; CARRYING OVER $17,644,618.06 OF UNSPENT PROJECT BUDGET TO FY 2025-26; AND AUTHORIZING THE ADDITION OF 1.0 FTE MANAGEMENT ANALYST POSITION IN THE CITY MANAGER’S OFFICE, PURSUANT TO CEQA GUIDELINE 15378
The City Council of the Town of Colma does hereby resolve:
1. Background
(a) On June 25, 2025, the City Council adopted the Fiscal Year (FY) 2025-26 Budget. (b) Staff reviewed the budget to actual results through December 31, 2025 , and found that the current operating budget requires additional appropriations for City Council salaries and ex
penses; the City Attorney professional services contract ; a benefit cost adjustment for t he Ret
irement Health Savings Accounts (RHSA) Expenses, and the Police Patrol Public Employee Ret
irement System (PERS) expense; City Clerk departmental expenses; a missing HR softwar e appr
opriation; the Town’s IT services contract; the Town’s liability insurance premium; and the Pl
anning Department's Advanced Planning Services, including the Housing Element, Metropolitan Transportation Commission (MTC) Transit-Oriented Communities (TOC) Policy updat
es, GIS, and Zoning Amendment Programs; and the Local Match transfer for a recently approved phase of an existing capital project.
(c) Staff also reviewed the capital budget program with the City Manager and Public Works staff to determine if any updates to the CIP were needed. The CIP update for FY 2025-26 includes the c
reation of three (3) new projects in the Street Capital Fund (32) and one (1) in the Sewer Capital Fund (82) including budget appropriations, and appropriation of grant funds and local match for one (1) project in the Street Capital Fund (32). (d) City Council authorized the creation of the Management Analyst I/II/III position in the salary schedule on January 13, 2021. The City Manager’s Office has seen an increased need for staff time related to staff reports, management of the CIP program, and overall administrative capabilities within the department.
2. Finding
The City Council hereby makes the following factual findings with regard to amending the budget:
(a) City Council Expenses – An additional $31,824 for City Council expenses, including:
$17,324 to cover City Council salary increases from FY 2024-25 not budgeted for in FY 2025-26; and $1
4,500 for additional travel ($2,000) and City Council Expense accounts ($2,500 per member) to cover additional costs for City Council Member travel and community expenses.
ATTACHMENT A
Res. 2026-XX, 2025-26 Budget Amendment Page 2 of 5
(b) City Attorney Professional Services Contract – An additional $90,000 for the City Attorney Professional Services contract, due to an increase in staff driven work including planning ordinances, master plans and policies, and PRA requests requiring legal review.
(c) RHSA and PERS Benefit Adjustments – An additional $157,088 for staff benefits to reflect anticipated spending based on year-to-date actuals, including RHSA Funding of $51,428 (City Manager’s Office, $6,025; Human Resources, $1,403; Finance, $8,000; Police Administration, $4,000; and Police Patrol, $32,000) and PERS funding of $105,660 for the Police Department.
(d) City Manager’s Office Departmental Expenses – An additional $2,817 for Special Department Expenses based on current year spending trends for Town events and needs.
(e) HR Software – An additional $18,920 for the annual subscription expense for contracted HR software. In 2022, Colma signed an agreement with an HR Software services company that was not budgeted for in FY 2025-26.
(f) IT Services Contract – An additional $28,000 due to higher than anticipated contract services costs with the City’s IT provider, primarily due to labor costs related to replacement of firewall and server equipment, and other ongoing IT projects.
(g) Liability Insurance Premiums – An additional $24,255 for the Town’s liability insurance premiums to reflect current year premium rates.
(h) Housing Element Implementation Programs – The Planning Department needs an additional $60,000 to meet State Housing and Community Development ongoing compliance requirements for the Housing Element Implementation Programs, and for updates to the Accessory Dwelling Unit (ADU) ordinances based on new legislation from the 2024 and 2025 legislative sessions.
(i) MTC TOC Policy Updates – An additional $20,000 for Planning staff costs due to working with MTC staff and its consultants to adhere to its requirements pertaining to land use density, affordable housing, BART station access, and its parking. There has been progress on these four new requirements by MTC - compliance with the new requirements is scheduled for late 2027. Staff will continue their compliance efforts, and it’s anticipated that the efforts will continue for the rest of the fiscal year and the 26/27 fiscal year.
(j) GIS – An additional $45,000 for t he GIS team to provide a list of GIS layers with information on the data in those layers and for all layers to be listed in the parcel viewer. It is anticipated that the efforts, to a lesser degree, will continue for the next fiscal year.
(k) Zoning Amendment – An additional $25,000 to cover staff’s efforts for the required updates to Town’s zoning due to changes in state and regional policies pertaining to housing and required higher density. It is anticipated that the efforts will continue for the next fiscal year.
(l) Transfers to Street Capital Fund – An additional $220,000 transfer from the General Fund (11) to the Street Capital Fund (32) to cover the local match portion of a Measure W Grant for the El Camino Real Bicycle and Pedestrian Improvement Project.
Res. 2026-XX, 2025-26 Budget Amendment Page 3 of 5
(m) Transfers to Sewer Capital Fund – Adds $295,300 transfer from Sewer Operating Fund (81) to Sewer Capital Fund (82) to initiate three (3) new capital projects.
(n) Sanitary Sewer Management Plan (SSMP) – Adds $45,000 for project initiation in Fund 82.
Every 5 years the Town of Colma is required to update their SSMP. The SSMP is a mandatory, comprehensive plan, developed by the Colma Public Works/Engineering Department to properly manage, operate, and maintain the Town’s sewer systems, aiming to prevent and mitigate sewage spills (SSOs). The plan will also address the updates and development of an emergency response plan along with defining various operation and maintenance programs.
(o) Sanitary Sewer CCTV Inspection – Adds $177,100 for project initiation. Per the requirements of our current SSMP, the Town is required to inspect our sanitary sewer mains. Sanitary Sewer Closed-Circuit Television (CCTV) Inspection is a non-invasive, specialized, and often mandated diagnostic process used to assess the internal condition of sewer pipes. It involves sending a remotely controlled, high-definition camera on a crawler or rod through sewer lines to record video footage of the interior, looking for issues like root intrusion, cracking, leaks, and grease buildup.
(p) Sanity Sewer System Smoke Testing – Adds $123,200 for project initiation. Per the requirements of our current SSMP, the Town is required to inspect our sanitary sewer mains.
Sanitary system smoke-testing is a routine, non-invasive maintenance method to identify structural defects, leaks, and illegal connections in the sewer system. It involves blowing non-toxic, white, or grey smoke into sewer manholes to detect where the smoke escapes, which indicates points of "inflow and infiltration" (I & I) where rainwater or groundwater enters the system.
(q) El Camino Real (ECR) Bicycle and Pedestrian Improvement Project - PA&ED – Adds $2,550,000 for Measure W Grant funded project phase of the redesign of El Camino Real in Colma and part of South San Francisco. The funding agreement was executed on April 29, 2024.
(r) El Camino Real (Segment A) - Climate Program Implementation Grant Technical Assistance – Adds $300,000 for an MTC grant for the redesign of a portion of El Camino Real. The funding agreement was executed June 18, 2025.
3. Amendment to Budget
(a) The FY 2025-26 Adopted Budget for the Town of Colma is hereby amended by increasing the General Fund (11) expenditure budget as follows:
(i) City Council (Fund 11, Org 110) by $31,824,
(ii) City Attorney (Fund 11, Org 130) by $90,000,
(iii) City Manager’s Office (Fund 11, Org 140) by $8,842, (iv) Human Resources (Fund 11, Org 141) by $20,323,
(v) Finance (Fund 11, Org 150) by $8,000,
(vi) General Services (Fund 11, Org 151) by $52,255,
(vii) Police Administration (Fund 11, Org 210) by $109,660, Res. 2026-XX, 2025-26 Budget Amendment Page 4 of 5
(viii) Police Patrol (Fund 11, Org 220) by $32,000,
(ix) Planning (Fund 11, Org 410) by $150,000,
(x) And Non-Departmental (Fund 11, Org 600) by $220,000. (b) The FY 2025-26 Adopted Budget for the Town of Colma is hereby amended by increasing the Street Capital Fund (32) revenue and expenditure budgets as follows:
(i) ECR Bicycle and Pedestrian Improvement Project - PA&ED (Fund 32, Project 923) revenues and expenditures by $2,550,000.
(ii) El Camino Real (Segment A) - Climate Program Implementation Grant Technical Assistance (Fund 32, Project TBD) revenues and expenditures by $300,000. (c) The FY 2025-26 Adopted Budget for the Town of Colma is hereby amended by increasing the Sewer Operating Fund (32) expenditure budget as follows:
(i) Non-Departmental (Fund 81, Org 600) expenditures by $300,300. (d) The FY 2025-26 Adopted Budget for the Town of Colma is hereby amended by increasing the Sewer Capital Fund (82) revenue and expenditure budgets as follows:
(i) Sanitary Sewer Management Plan (SSMP) (Fund 82, Project 932) expenditures by $45,000. (ii) Sanitary Sewer CCTV Inspection (Fund 82, Project 933) revenues and expenditures by $177,100.
(iii) Sanity Sewer System Smoke Testing (Fund 82, Project TBD) revenues and expenditures by $123,200.
(e) The funds described in this resolution are hereby appropriated as described above.
4. Authorization of Management Analyst Position
(a) The FY 2025-26 Adopted Budget for the Town of Colma is hereby amended by increasing the General Fund (11) authorized position count as follows:
(i) Adds 1.0 FTE Management Analyst II position and authorizes hiring of staff as a Management Analyst I or II, dependent upon the qualifications of the applicant, and at the discretion of the City Manager.
Res. 2026-XX, 2025-26 Budget Amendment Page 5 of 5
Certification of Adoption
I certify that the foregoing Resolution No. 2026-XX was duly adopted at a regular meeting of said City Council held on February 1 1, 2026 by the following vote:
Name Voting Present, Not Voting Absent
Aye No Abstain Not Participating
Carrie Slaughter, Mayor
Helen Fisicaro
Joanne F. del Rosario
Thomas Walsh
Ken Gonzalez
Voting Tally
Date: _________________________ __________________________________ Carrie Slaughter, Mayor
Attest: __________________________________
Michelle Estabillo Gourlie, City Clerk