F.2 Budget Update
May 12, 2025
City Council
1 Overview
2 Timeline
Proposed Changes
Department Additional Requests
General Fund Outlook
Other Funds
Timeline
2022
$20M Structural Deficit
identified
2023
May
• Council Study Session
- Hybrid Approach
- Departments hold the line
- New revenues discussed
June
• FY24 & FY25 Budget Adopted
- Midcycle to have updates
August
• All Hands Budget Meetings for Staff
Sept-Dec
• CM hosted Office Ideas
3 Timeline
4 2024
March/April
• Council Study Sessions
- CM Directed 5% reduction, achieved
3.77%
- Revenue Measures Identified
TOT – Bus Lic – Fee Studies
June
• FY25 Budget Adopted
November
• TOT & Business License Pass
2025
January
• Council Retreat – Show Austerity
March
• Austerity measures presented
April
• Reduced austerity and department needs
May
• Study Session
June
• Budget Adoption
Austerity Options Presented
5 Parks and Rec
Signature
Events
Downtown
Theatre
Concerts in the
Park
Pool Capacity
Activity Guide
Police
PAL
Sworn Officer
Positions
Domestic
Violence
Community
Engagement
Fire
Brown Outs
CMO
Winter Shelter
Homeless
Services
Council
Digital Annual
Report
Community
Development
Economic
Development
Planning
Admin
Employee
Engagement
Vendor/Payroll
IT Reductions
Public Works
Landscaping
Services
Neighborhood
Park Closures
Community
Park Closures
Fleet Reduction
Impact of Reductions/Requests
FY26 FY27
One-Time
Reductions ($812,783) ($448,776)
Department Requests 537,000
Total One-Time ($275,783) ($448,776)
Ongoing
Reductions ($407,440) ($467,440)
Department Requests 1,512,347 1,524,700
Total Ongoing $1,104,907 $1,057,260
6 Biennial Budget – Preliminary Summary
In $ Millions
7 Description
Projected
FY25
Proposed
FY26
Proposed
FY27
FY26
vs
FY25
FY27 vs
FY26 % FY26 % FY27
Revenues 139.42 142.16 145.94 2.74 3.78 2.0% 2.7%
Expenses 149.55 153.30 157.02 3.53 3.96 2.4% 2.6%
Net Surplus/(Deficit) (10.13) (11.14) (11.08) (1.01) 0.06 Proposed Reductions – Decision Point 1
8 Ongoing
Winter Shelter utilize IGS Funds* $150,000 $150,000
Circle Up Education 88,000 88,000
Eliminate printed annual report 32,000 32,000
Downtown Theatre 117,440 177,440
Reduce Activity Guide 20,000 20,000
$407,440 $467,440
One-Time FY26 FY27
IT – Reductions $772,783 $448,776
Concerts in the Park 40,000
$812,783 $448,776
Department Requests for
Budget Increases
9 Departments Request Summary – Decision Point 2
FY26
One-Time
FY27
One-Time
FY26
Ongoing
FY27
Ongoing
CMO $250,000 $882,687 $882,687
Parks and Recreation 15,000 15,000
Public Works 348,922 395,942
Police 150,000 170,295 75,707
Fire 137,000 95,443 155,364
Total Ongoing $537,000 $1,512,347 $1,524,700
10 City Manager - $1,132,687 | $882,687
11 Description Comments FY26 FY27
Animal
Services
Cost of animal control and animal shelter $857,437 $857,437 LAFCO Impact of continued growth/annexations 25,250 25,250 $882,687 $882,687
Description Comments FY26 FY27
Ballot Initiative Estimated cost for polling, county costs $250,000 Ongoing
One-Time
Parks and Recreation – $15,000| $15,000
12 Description Comments FY26 FY27
Part-Time
Classification
Alignment
Align multiple part-time job classifications with
similar job requirements
$15,000 $15,000
Ongoing
Public Works – $348,922| $395,942
13 Description Comments FY26 FY27
Construction Management
Software
Efficiency for administration and inspection for
infrastructure projects. Helps with grant compliance.
$30,000 $20,000
Development Review Program Legal and outside consulting 52,360 69,380 2 – Equip Mech I to II Staffing needs 14,712 14,712
Storm Drains Regulatory compliance, pesticides 63,000 63,000 Landscaping Current service contracts have built in 3% clause 97,807 97,807 New Restrooms Alan Witt Y1, Lee Bell Y2 – cost to service new restrooms
45,000 85,000
New Landscaping CA 12 route and West Texas (I-80 to Beck) 45,500 45,500 VRF – Safety Upfit Additional Safety Lighting 543 543
$348,922 $395,942
Ongoing
Police Department - $320,295 | $75,707
14 Description Comments FY26 FY27
Vehicle Timing 29 PIU’s due for replacement in FY27, bring forward 14 PIU’s to FY26 64,778 9,680 Vehicle Needs Currently 3 totaled, not due to be replaced, bring forward the replacement
70,517 31,027
SRO – CSO
Staffing
To meet current contract with FSSD requires as needed labor. Without which we cannot provide an SRO at the Public Safety Academy 35,000 35,000
$170,295 $75,707
Description Comments FY26 FY27
Helmets/Equipment Replacement needed, officer safety, safety regulation compliance
$150,000
Ongoing
One-time
Fire Department - $232,443 | $95,443
15 Description FY26 FY27
Ballistic Equipment Replacement $83,000
Electric Vehicle Extrication & Firefighting Training 10,000 SWAT/TEMS – Replacement Member Training 44,000
$137,000
One-time
Fire Department - $232,443 | $155,364
16 Description FY26 FY27
Adding UTV to VRF $655 $655
Cancer Prevention & OSHA Requirement Initiatives 7,760 7,760 Critical Incident Stress Management (CISM) Team 10,500 10,500 Prevention Bureau 7,000 7,000
Suppression Equipment & Supply Needs 8,500 8,500
Promotional Testing – Contract Cost Increase 17,000 17,000 Training Tower Additional Revenue (34,000) (34,000)
Training Tower Additional Expense 25,000 25,000
Station 36/39 New Operating Costs - 59,921
Utilities/Recurring Fire Station Contract Cost 53,028 53,028 $95,443 $155,364
Ongoing
Non-General Fund Personnel Requests – Decision Point 3
17 Fund Description Comments Cost
CIP 2 - Associate Civil Engineers –
Limited Term
Needed to temporarily augment staff
with number of vertical construction
projects
$435,394
Water Water Distribution Operator
IIIA
Alleviate absences, address deferred
work
165,450
IT IT Analyst Senior Convert limited term to full time for ongoing EnerGov functionality and
support
197,095
$797,939
General Fund - Mid-Year 2025 Adjustments – Decision Point 4 18 Description Detail Amount
Animal Control HAS Contract increases $357,103
Animal Sheltering Solano County sheltering costs 519,000 Fire Overtime 1,345,732
Strike Team Reimbursement (869,833)
Total $1,352,002
19 Key Assumptions
Internal CalPERS HdL Cone HdL Actuaries
COLA’s
• Budget: 0%
• 2026
• 2027
• Forecast:
• 2028 - 0%
• 2029+ - 2%
1%: $780k
($580k-GF)
UAL
• CalPERS
forecast
model
• Assumes
6.8% Return
• CalPERS in
ALM Cycle
1%: $650k
Property Tax
• 4.2% - 4.5%
Long Term
Growth
Sales Tax
• 3% Long
Term
Growth
Other
• General
Liability
• Workers’
Comp
CalPERS Unfunded Actuarial Liability Payments
In Millions
20 8
10 12 13 14
16 17
20 23
25 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
General Liability
In Millions
*Preliminary forecast 21
0.52 0.64
1.28 1.59 1.93
2.70 3.45
0.97 0.54
3.59 0.97
2.94 1.00
1.50 1.49
1.18 4.87
2.56 4.87
3.70 4.95
2020 2021 2022 2023 2024 2025* 2026*
Insurance Claims
Insurance Premiums
Workers Compensation
*Preliminary forecast
FY # of claims Total Days Lost Time
15-16 64 241
16-17 74 792
17-18 72 243
18-19 88 499
19-20 97 959
20-21 156 743
21-22 234 1,799
22-23 158 810
23-24 107 830
24-25 YTD 76 1,277
Totals 1,126 8,193
22 Biennial Budget – Preliminary Revenues
In $ Millions
23 *Excludes one-time balancing measures
Revenue
FY25
Projected
FY26
Proposed
FY27
Proposed
FY26 vs
FY25
FY27 vs
FY26 % FY26 % FY27
Property Taxes 44.45 45.67 47.46 1.21 1.79 2.7% 3.9%
Sales Taxes 55.46 56.15 57.82 0.69 1.67 1.2% 3.0%
Utility and Franchise Taxes 13.04 13.36 13.69 0.32 0.33 2.4% 2.4% Cannabis Tax 0.83 0.85 0.87 0.02 0.02 2.0% 2.0%
Other Taxes & Intergov 8.12 8.36 8.54 0.24 0.18 3.0% 2.1% Licenses, Charges & Other 14.38 13.39 13.48 (0.98) 0.09 -6.8% 0.6% Investment Income* 0.47 1.18 0.83 0.70 (0.35) 149.0% -29.6% Transfers In-Other Funds 2.66 3.20 3.26 0.54 0.06 20.4% 2.0% Total Revenues/Transfers In 139.42 142.16 145.94 2.74 3.78 2.0% 2.7% Biennial Budget – Expenses
In $ Millions
24 Expenses
FY25
Projected FY26 FY27
FY26 vs
FY25
FY27 vs
FY26 % FY26 % FY27
Staff Costs 105.57 106.76 110.33 1.18 3.57 1.1% 3.3%
Discretionary 25.90 25.72 25.51 (0.18) (0.21) -0.7% -0.8% ISF - IT 12.53 11.70 12.06 (0.83) 0.36 -6.6% 3.1%
ISF - Vehicle Replacement 3.74 4.23 4.20 0.49 (0.03) 13.0% -0.6% ISF - Vehicle Maintenance 3.54 3.81 3.91 0.28 0.10 7.8% 2.5% ISF - Liability 4.29 6.08 6.61 1.79 0.53 41.8% 8.7%
ISF - Cogen, Building, Svc 1.52 2.06 1.67 0.54 (0.39) 35.8% -19.2% Transfers Out/Credits (7.55) (7.06) (7.27) 0.48 (0.20) -6.4% 2.9% Total Expenses/Transfers Out 149.55 153.30 157.02 3.75 3.72 2.5% 2.4% *Excludes one-time balancing measures
Biennial Budget – Preliminary Summary
In $ Millions
25 Description
Projected
FY25
Proposed
FY26
Proposed
FY27
FY26
vs
FY25
FY27 vs
FY26 % FY26 % FY27
Revenues 139.42 142.16 145.94 2.74 3.78 2.0% 2.7%
Expenses 149.55 153.30 157.02 3.53 3.96 2.4% 2.6%
Net Surplus/(Deficit) (10.13) (11.14) (11.08) (1.01) 0.06 Revised 10 Year Forecast
26 (50)
-
50 100
150
200
FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33
Millions
Revenue Total OneTime Expenses Fund Balance
Measure P Impact
27 135
145
155
165
175
185
195
FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34
Millions
Expenses Revenue
28 Recession Impacts – Starting FY28
140,000,000
150,000,000
160,000,000
170,000,000
180,000,000
190,000,000
200,000,000
FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35
Recession - 10% Impact Sales Tax/CalPERS - FY28
Revenue Expenses 10% - Sales Tax 10% CalPERS
One-Time Funding Available – Decision Point 5
In $ Millions
29 Description
Revised
Identified FY24 FY25 Available
Long Term Disability $1.70 - - $1.70
Pension Obligation Bonds 1.40 0.65 - 0.75
Workers’ Compensation 1.44 1.00 0.44 -
Budget Gain/Loss FMV 6.00 3.00 3.00 -
IGS Broadband-Cybersecurity 5.00 2.50 2.50 -
IGS Uncommitted-Fund Deficit 3.11 - - 3.11
IGS Loan Repayments RDA 9.39 - 4.20 5.19
Total $28.04 $7.15 $10.14 $10.75
Biennial Budget – Preliminary Summary
$ Millions
30 Description
Projected
FY25
Proposed
FY26
Proposed
FY27
FY26
vs
FY25
FY27 vs
FY26 % FY26 % FY27
Revenues 139.42 142.16 145.94 2.74 3.78 2.0% 2.7%
Expenses 149.55 153.30 157.02 3.37 4.43 2.3% 2.9%
Net Surplus/(Deficit) (10.13) (11.14) (11.08) (1.01) 0.06 Balancing Measures 10.14 10.75 -
Adjusted Surplus/(Deficit) 0.01 (0.39) (11.08)
(50)
-
50 100
150
200
FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33
Millions
Revenue Total OneTime Expenses Fund Balance
Revised 10 Year Forecast w/ One-Time
31 Intragovernmental Services Fund
32 Land 2,104,129
Loans 3,344,774
Fund Advances 797,600
Curr Liabilities (356,967)
Total (6/30/2024 ACFR Fund Balance) 37,438,804
Category 24 Budget Balancing FY24 Ending
FY25/FY26 Budget
Balancing Planned Use Designated Available
Broadband (2,500,000) 7,115,502 (2,500,000) (2,149,672) 2,465,830 Downtown Streetscape 350,000 (350,000) -
ED 8,817,856 (6,828,907) 1,988,949
Homeless Navigation 1,424,544 (300,000) 1,124,544
LLMDs (536,000) 536,000 -
Markley Lane 1,800,000 (1,800,000) -
N Texas St proj 600,000 (600,000) -
PAL Center 1,300,000 (500,000) 800,000
PERS - - -
Soccer Complex 350,000 (350,000) -
Unrestricted-RDA 6,994,223 (9,394,223) 2,400,000 -
Unrestricted 3,333,143 (3,107,261) (225,882) -
(2,500,000) 31,549,268 (15,001,484) (10,168,461) 6,379,323 Direction - Balance Budget – Decision Point 6
33 General Fund
Reserve
• Reduces reserve
from 32% to
22%
Repurpose IGS
Committed Funds
• Preserves
$6.4M of GF
reserves
• Reserve from
32% to 26%
IGS Planned Use
Funds
• $6M-$10M
• Identify which
projects to cut
Current Budget Policy
34 20% Target
7% Minimum
Below 7% Council to direct reductions
45 days not achieved 7%, City Manager to
direct uniform % decrease for departments
• Varies
• None
• Rely on General
Fund, volatile
impact
• 25%-100% reserve
target
Other Agencies
• Set a min/max target
• 25%-50% of total
liability
• Cash on hand for
eligible retirements
• Cash on hand for
routine cash outs and
turnover
Consideration
• 32% Funded
• Cash $7.2M
• Eligible Retirements:
$6.1M
• Historical cash outs
• 2022-$4.6M
• 2023-$4.4M
• 2024-$4.2M
FY24 Ending
Compensated Absence Funding – Decision Point 7
Purpose: Account for the
total outstanding liability of
all accrued employee annual
leave that is eligible to be
paid at the employees'
separation or through City
cash out program. Most leave
balances the City provides
have cash value.
35 36
Other Funds - Golf
FY 24-25 FY 25-26 FY 26-27
Operating Revenues $10,859,069 $11,192,668 $11,685,892
Operating Expenses 9,880,379 10,532,977 10,875,880
Net Operating 978,690 659,691 810,012
Rancho Irrigation 500,000 -
PV Irrigation 300,000 150,000
Other Capital Requests 267,000 1,175,000
Total Capital 300,000 917,000 1,175,000
Available Funds $446,116 $181,591 $58,737
37 Other Funds - Golf
104 101 97 102 102
95 142
133
122 128 124 122 125
-
20 40
60 80
100
120
140
160
Golf Rounds Played
Thousands
Deferred Capital Needs Estimate
Equipment Replacement (3yrs) $800,000
Course Deferred Maintenance 600,000
Building Deferred Maintenance 1,500,000
Kitchen TBD
Top Tracer - PV 250,000
Total $3,150,000
38 Other Funds – Golf – Historical Support
In $ Millions
Loans to Golf Advance Interest* Total
General Fund Portion $11.8 $8.1 $19.9
Bedroom Tax Portion 3.8 3.9 7.7
Total $15.6 $12.0 $27. 6
Additional General Fund
Transfers to Golf (1998-2020)
• $12.2
Admission Tax Revenue into
General Fund (2000-2024)
• $13.7
Annual Admission Tax
Revenue
• $0.55-$0.60
* 9% Interest
Other Funds – Water
In $ Millions
39 • 4%2018
• 4%2019
• 4%2020
• 4%2021
• 0%2022
• 0%2023
• 0%2024
• 0%2025
Details FY23
Actuals
FY24
Actuals
FY25
Projected
FY26
Proposed
FY27
Proposed
Operating Revenues 36.8 35.9 36.2 37.4 39.3
Operating Expenses 35.4 38.0 41.1 44.6 44.7
Net Operating 1.4 (2.1) (4.9) (7.2) (5.4)
Other Funds – Water Rate Tentative Schedule
40 May
• Adopt
PUMP
• Finalize
rate
options
June
• Begin
public
outreach
events
• Council
initiates
Prop 218
Process
July
• Host
public
outreach
events
• Prop 218
notices
mailed
August
• Host
public
outreach
events
• Council
Workshop
(optional)
Nov
• Close
public
hearing
• Adopt new
rates
• Continue
public
outreach
Jan
• New rates
go into
effect
Other Funds - Housing
41 • Depleted in FY26
Heavily reliant on one-time funds
Inclusionary Housing Policy
• $2.5M-$3.0M
Non-Grant Funded Operational Costs
42 Questions/Additional Direction