AGENDA REPORT
City Council
MEETING
DATE:
September 23, 2026
PREPARED
BY:
Annemarie Clisby,
Senior Finance Analyst
DEPARTMENT
DIRECTOR:
Tom Gallup
DEPARTMENT: Finance CITY
MANAGER:
Jennifer Campbell
SUBJECT:
Adoption of Resolution 2026-71 Approving Continuing Appropriations from Fiscal Year 2025-26 and Amending the Fiscal Year 2026-27 Operating Budget
RECOMMENDED ACTION:
Adopt City Council Resolution 2026-71, titled “A Resolution of the City Council of the City of Encinitas, California, Amending the Fiscal Year 2026-27 Budget” (Attachment 1).
ENVIRONMENTAL CONSIDERATIONS:
The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” under Section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The action is also exempt from CEQA under Section 15378(b)(5) of the CEQA Guidelines because it involves an organizational or administrative activity of government that will not result in the direct or indirect physical change in the environment.
This item does not relate to the Climate Action Plan.
GENERAL PLAN/CITY COUNCIL FOCUS AREAS:
This agenda item is not related to the General Plan.
This agenda item is related to the Focus Area of Effective and Reliable City Services, Infrastructure and Communications.
FISCAL CONSIDERATIONS:
The proposed continuing appropriations represent approved Fiscal Year (FY) 2025-26 operating budget appropriations that were not spent by June 30, 2026. Operating appropriations lapse at the end of the fiscal year, but funds are still needed to complete approved programs or purchases 2026-09-23 Item #10F Page 1 of 7
initiated in FY 2025-26 that were not budgeted in FY 2026-27.
Proposed continuing appropriations include:
• Operating revenue totaling $18,050 for the General Fund • Operating expenditures totaling $1.5 million across all funds o $0.2 million in General Fund operating expenditures
o $0.1 million in state grants
o $16,412 in wastewater support
o $40,078 in vehicle replacements
o $0.2 million for machinery and equipment replacements o $0.8 million for fire apparatus replacements
o $46,094 for technology replacement.
Adoption of City Council Resolution 2026-71 provides approval for continuing appropriations and amends the Fiscal Year 2026-27 budget.
BACKGROUND:
The City of Encinitas fiscal year starts July 1 and ends June 30.
A public agency may not spend public funds without the legal authorization to do so. A budget appropriates public funds, providing legal authorization from the governing body. The budget also functions as a financial plan that allocates resources needed to deliver core services, reflects community priorities, and establishes a mechanism for monitoring expenditures and providing financial transparency.
On June 18, 2025, the City Council approved the Fiscal Year 2025-26 annual operating budget and adopted Resolution 2025-73 authorizing appropriations through June 30, 2026. 2026-09-23 Item #10F Page 2 of 7
On June 17, 2026, the City Council approved the Fiscal Year 2026-27 annual operating budget and adopted Resolution 2026-48 authorizing appropriations through June 30, 2027.
The continuing appropriations process provides an opportunity for departments to request a carryover of approved operating budget funds from one fiscal year to the next, to maintain resource continuity in accomplishing multi-year objectives.
ANALYSIS:
Commitments for materials and services—such as purchase orders and contracts—are recorded during the year as encumbrances, which help track available budget and manage spending. Open encumbrances automatically carry forward into the next fiscal year. In contrast, operating appropriations expire at the end of the fiscal year. Because of this, City Council approval is required to add the needed budget amounts to the following year as continuing appropriations.
Budgeted expenditures may remain unspent as of June 30 due to a variety of reasons, such as:
• The service or good is no longer required;
• Actual expenditures for the service or good were lower than anticipated; or • Other extenuating circumstances.
Proposed continuing appropriations must meet the following criteria:
1. Amounts must be greater than $5,000. (Capital projects typically represent one-time items budgeted to projects that cross fiscal years; continuing appropriations do not apply).
2. The service or good was approved during the budgeting process and:
a. Carryover is needed to meet the overall funding level for multi-year program objectives or department projects.
b. The item, service or goods were not purchased during the fiscal year due to extenuating circumstances. Potential reasons include: the product was difficult to procure or was backordered; the consultant was unavailable; vacancy of key personnel delayed the program; department did not have enough time to implement the program/project (citywide or department emergency); or other priorities of the department superseded the department’s ability to procure the good or contract for the service.
c. The service or item is still needed to perform an approved program or project in the department and a budget for that does not exist in the next fiscal year. d. The money for the item remains in the divisional budget at the end of the fiscal year. The divisional budget has a positive remaining total budget.
Resolution 2026-71 Exhibit A (Attachment 1) identifies specific carryforward amounts recommended for reappropriation. If the resolution is adopted, the budget authority for these purchases and services would be transferred and added to the FY 2026-27 operating budget, resulting in a net $0 impact to the current budget and projected unassigned fund balance.
If the resolution is not adopted, carryforward encumbrances will reduce the available FY 2026-27 operating budget.
ATTACHMENT(S):
1. City Council Resolution No. 2026-71, titled “A Resolution of the City Council of the City of Encinitas, California, Amending the Fiscal Year 2026-27 Budget” 2026-09-23 Item #10F Page 3 of 7
RESOLUTION NO. 2026-71
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ENCINITAS, CALIFORNIA, AMENDING THE FISCAL YEAR 2026-27 BUDGET
WHEREAS, on June 17, 2026, the City Council of the City of Encinitas adopted Resolution Number 2026-48 adopting the budget for Fiscal Year 2026-27; and WHEREAS, changes in anticipated revenues and/or expenditures of the City of Encinitas necessitates amendments to the appropriations for Fiscal Year 2026-27; and WHEREAS, budgeted expenditures do not exceed anticipated revenue and available fund balance; and
WHEREAS, the City Council has reviewed the proposed Fiscal Year 2026-27 budget amendments.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Encinitas, California, that the budget amendments for Fiscal Year 2026-27 as contained in Exhibit A to this resolution are hereby adopted.
NOW, THEREFORE, BE IT FURTHER RESOLVED The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” under Section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The action is also exempt from CEQA under Section 15378(b)(5) of the CEQA Guidelines because it involves an organizational or administrative activity of government that will not result in the direct or indirect physical change in the environment.
PASSED, APPROVED AND ADOPTED this 23rd day of September, 2026 by the City Council of the City of Encinitas, State of California. ____________________________
Bruce Ehlers, Mayor
ATTEST:
______________________________
Pete Weichers, City Clerk
APPROVED AS TO FORM:
_____________________________
2026-09-23 Item #10F Page 4 of 7
Ajit Thind, City Attorney
CERTIFICATION: I, Pete Weichers, City Clerk of the City of Encinitas, California, do hereby certify under penalty of perjury that the foregoing Resolution was duly adopted at a regular meeting of the City Council on the 23rd day of September, 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_____________________________
Pete Weichers, City Clerk
2026-09-23 Item #10F Page 5 of 7
Exhibit A
City of Encinitas Reso 2026-71
FY 2025-26 Continuing Appropriations
June 30, 2026 Available Budget
#
PO or
Contract Org Object Description
Amount
Requested Justification Council Action
1 10120330 434.1 Permit Parking Zone
Software
The software could not be 80,000.00
purchased until updates to
the City of Encinitas
Permit Parking Program
and Municipal Code
Chapters 14.41 and 14.42
were approved on August
12, 2026 Item 08G.
City Council directed
staff to add at Budget
Workshop 3 on May 7,
2025 and approved with
Budget Adoption 2025-
06-18 Item 10B
2 26200994 10151314 476 Bike Racks 27,530.00 Custom items were ordered and are expected
to arrive in August.
N/A - City Manager
approved items <100K
3 10152700 431.1 Building Resilient
Infrastructure
Communites Grant
Application
The July 23, 2026 75,000.00
deadline has been
extended into 2027.
Application requires
coordination with CALOES.
Resolution 2026-41
approved 2026-05-20
Item 10E
4 26200949 10162511 468.3 Fire Hose Nozzles 22,756.00 Items were ordered and are expected to arrive in
October.
N/A - City Manager
approved items <100K
5 26201018 10171643 476 Chilled Water Pump
Replacement
Items were ordered and 15,942.00
are expected to be
installed in August.
N/A - City Manager
approved items <100K
6 26300169 20351430 431.1 Homeless Response
Services
San Diego Rescue 112,022.69
Mission contract
continuing through
December 2026.
Approved contract 2025-
11-12 Item 08H
7 26200966 61171660 431.1 CSD ESD Reserve
Policy Update
Waterworks Engineers 16,412.00
Task 8 started in June,
expect completion in
November.
As-needed contract
approved 2023-09-20
Item 08E
8 26200768 62271670 475 Outfitting for Fire Chief
Vehicle
Parts are on backorder. Vehicle replacement 40,078.00
schedule approved 2025-
06-18 Item 10B
9 26200918 62371670 476 Outfitting VM448 Ford F350 Outfitting for VM448 was 17,239.00 completed in July.
Vehicle replacement
schedule approved 2025-
06-18 Item 10B
10 26201030 62371670 476 VM366 NRR Rodder
Body Refurbishment
Rodder was sent for 127,372.00
refurbishment in May and
is expected to be returned
in Aug/Sept.
Approved purchase
2026-02-25 Item 8G
11 62371670 476 VM154 Trailer
Replacement
Deferred approved 10,000.00
purchase based on an
assessment of equipment
condition. Fleet staff
determined that the
operational life can be
extended out another
year.
Vehicle replacement
schedule approved 2025-
06-18 Item 10B
2026-09-23 Item #10F Page 6 of 7
Exhibit A
City of Encinitas Reso 2026-71
FY 2025-26 Continuing Appropriations
June 30, 2026 Available Budget
#
PO or
Contract Org Object Description
Amount
Requested Justification Council Action
12 62371670 476 VM155 Trailer
Replacement
Deferred approved 10,000.00
purchase based on an
assessment of equipment
condition. Fleet staff
determined that the
operational life can be
extended out another
year.
Vehicle replacement
schedule approved 2025-
06-18 Item 10B
13 62371670 476 VM311 Bobcat S76T4
Replacement
Deferred approved 80,000.00
purchase based on an
assessment of equipment
condition. Fleet staff
determined that the
operational life can be
extended out another
year.
Vehicle replacement
schedule approved 2025-
06-18 Item 10B
14 62471670 476 VM201 Master Body
Brush Truck
Replacement
The Fire Department has 800,000.00
not finalized the
specifications for the
approved FY25
replacement. They are
evaluating whether to
proceed with a Brush
Truck replacement or a
full front-line Type-1 Fire
Engine. Any resulting
changes to the vehicle
type or amount would
return to City Council for
approval.
Vehicle replacement
schedule approved
2024-06-12 Item 08Q
15 26200969 63220330 468.5 Nimble Controller
Upgrade
Vendor 46,094.00 is experiencing
hardware delivery delays
for equipment ordered in
May.
N/A City Manager
approves items <100K
16 N/A 10100000 399 ES489 Fair Share
Applicant Deposit
Deposit received in FY25 18,050.00
remains in a liability
account until reclassified
as revenue when
complete or returned if
cancelled.
Administrative entry
helps staff track
expected one-time
revenue.
Revenue 18,050.00
Expenditures 1,480,445.69
2026-09-23 Item #10F Page 7 of 7