UN-AUDITED REVIEW OF FISCAL YEAR END 25/26
1 FINANCIAL
REPORTING
YEAR-END REVIEW
• Citywide Revenues & Expenses
• General Fund Operating Results
• Enterprise Funds
• Cash & Investments Portfolio
• Summary of Fiscal Resilience
• Conclusion & Future Reporting
Preliminary (Un-Audited) Results through June 30, 2026
FINANCIAL UPDATE | Q4 FY 2025/26 2
REVENUES AND EXPENSES ACROSS ALL CITY FUNDS
CITYWIDE - REVENUES & EXPENSES CITYWIDE — REVENUES & EXPENSES
REVENUES AND EXPENSES
ARE GENERALLY ON TARGET
99.5%
of revenue budget received
89.4%
of expenditure budget used
• Capital Project Revenues reflect project timing and related transfers • Internal Service spending included a grant-funded vehicle as a transferred into the Vehicle Replacement Fund. • Overall results are expected to align with the adopted budget.
FINANCIAL UPDATE | Q4 FY 2025/26 4
GENERAL FUND
Operating revenues and expenditures
FINANCIAL UPDATE | Q4 FY 2025/26 5
COMPARATIVE REVENUES & EXPENDITURES
$11.79M | 103.5% of budget
General Fund Revenues
$12.83M | 94.9% of budget
General Fund Expenditures
Revenues increased $252,445 (2.2%) & expenditures increased $386,832 (3.1%) compared with FY 2024/25.
FINANCIAL UPDATE | Q4 FY 2025/26 6
GENERAL FUND - DETAILED REVENUES
KEY YEAR-END VARIANCES
• Property tax: +$145K year over year; 106.8% of budget, including higher RPTTF residual distributions. • Other taxes: lower after closure of a cannabis business that historically generated about $148K annually. • Community Development charges: building permits and code-enforcement collections vary with development and collectability timing. • Other revenue: reduced by a $57K doubtful-receivable allowance and $108K less administrative reimbursement revenue. • Investment earnings: yield declined from 4.21% to 4.03%; available General Fund balances also decreased.
FINANCIAL UPDATE | Q4 FY 2025/26 7
GENERAL FUND REVENUES PROPORTION
Sales Tax, $5,930,212 Property Tax, $2,315,299
Other Taxes, $706,987
Licenses, Permits &
Franchises, $823,708
Rent, $164,148
Other Agencies,
$275,761
Community
Development
Charges,
$697,386
Public
Work…
Public
Safety
Charg
es,
$11…
Recreation &
Ranch Charges,
$204,267
Other
Rev…
Investme
nt
Earnings,
$145,539
Transfers In,
$266,697
FINANCIAL UPDATE | Q4 FY 2025/26 8
KEY YEAR-END VARIANCES
GENERAL FUND - DETAILED EXPENDITURES
• Salaries and benefits rose $323K; contract services and legal rose more than $260K combined. • Repairs and maintenance include a $156K Police vehicle-replacement contribution. • Other expenses reflect technology subscriptions, payment-processing costs, and the downtown parking-lot lease. • Department changes include EFID work, code-enforcement costs, Police training and MOU increases, and incorporation of Veronda-Falletti Ranch operations. • Most General Fund costs remain aligned with expectations and within the year-end budget.
BY TYPE BY DEPARTMENT
FINANCIAL UPDATE | Q4 FY 2025/26 9
ENTERPRISE FUNDS
Water and wastewater operating and capital results
ENTERPRISE FUNDS ANALYSIS
REVENUES AND EXPENSES
ON TARGET
Water revenue increased $224K, or
8.0%, over the prior year
Wastewater revenue increased
$436K, or 11.9%, over the prior year.
Rate increases offset by lower
consumption; wastewater also
reflects re-averaging on prior-year
usage.
Most expenses are within budget.
Differences between years primarily
reflect one-time capital outlay and
wastewater treatment.
Salaries and benefits declined
primarily due to actuarial pension
gains used for financial reporting.
FINANCIAL UPDATE | Q4 FY 2025/26 11
CASH &
INVESTMENTS
Balances and Portfolio Composition
As of June 30, 2026
SUMMARY OF CASH AND INVESTMENTS
• Portfolio is consistent with the City’s adopted investment policy. • LAIF is the largest holding at $9.66 million and a 3.92% yield. • Currently evaluating move of funds from LAIF to (SCIP) • Balances are sufficient to meet more than six months of operating requirements.
$16.24M
TOTAL CASH AND INVESTMENTS
FINANCIAL UPDATE | Q4 FY 2025/26 13
The portfolio is concentrated in LAIF and U.S. Bank Trust, while cash is distributed across operating, enterprise, special revenue, capital, internal-service, deposit, and successor-agency funds.
INVESTMENT PORTFOLIO COMPOSITION
OPERATING
CASH, $778,456 ,
5%
LAIF, $9,658,755 ,
59%
US BANK,
$5,447,696 , 34%
CAMP, $20,796 ,
0%
SCIP, $302,685 ,
2%
Investment Portfolio Composition - $16.2 Million
Gen. Operating,
$3,178,703
Special Revenues,
$3,041,485
Successor Agency,
$1,191,136
Water Operating and
Capital, $4,659,942
Wastewater
Operating and
Capital, $3,005,240
Internal Service
Funds, $279,333
Capital Projects,
$808,051
Deposit Accounts,
$77,187
Cash and Investment Value By Funds - $16.2 Million
FINANCIAL UPDATE | Q4 FY 2025/26 14
YEAR-END TIMING & NEXT STEPS
Preliminary results will be finalized through the audit and year-end accrual process.
REPORTING CONSIDERATIONS
Results include receipts through June 30 that were
received through August 31, 2026.
Additional FY 2025/26 revenues will be accrued in the
audited financial statements.
Construction and street-improvement projects often
span multiple fiscal years.
TENTATIVE SCHEDULE
SEPT 14 Audit fieldwork begins
OCT 27 Q1 FY 2026/27 financial summary
NOV 10 Audited statements and community
annual financial report
FINANCIAL UPDATE | Q4 FY 2025/26 15
Fiscal Resilience Evaluation Identified No Current
Risk Areas
CONCLUSION
• Continue long-term budget and capital-project planning. • Maintain focus on economic development and fiscal resilience. • Revenues and expenditures are mostly in line with budget. • Return with the audited FY 2025/26 ACFR and the community-focused PAFR.
FINANCIAL UPDATE | Q4 FY 2025/26 16