Agenda packet — Foster City City Council, May 22, 2025

CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
FOSTER CITY COUNCIL CHAMBERS
620 FOSTER CITY BOULEVARD
FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING HTTPS://FOSTERCITY ORG.ZOOM.US/J/82592136594 PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 620 Foster City Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

Members of the public wishing to speak will be asked to fill out a Request to Speak Form. Forms will be accepted until the staff presentation on an agenda item ends, or until the public comment period on non agenda items is closed. For special meetings, public comment is limited to item(s) on the agenda only.

To Observe the Meeting via Teleconference/Video Conference:

To access the meeting by computer / smartphone, go to: https://fostercityorg.zoom.us/j/82592136594 To dialin via phone:
16694449171 or
14086380968
And enter Webinar ID: 825 9213 6594
To Participate in the Meeting by Providing Public Comment via Teleconference/Video Conference:

During the Meeting: Live verbal public comments may be made by members of the public joining the meeting via Zoom. Zoom access information is provided above. Use the “raise hand” feature (for those joining by phone, press *9 to “raise hand”) during the public comment period for the agenda item you wish to address. The Zoom Host will call on people to speak by name provided or last 4 digits of phone number for dialin attendees. Please clearly state your full name for the record at the start of your public comment.

Before the Meeting: Written public comments for the record may be submitted in advance by 4:00 p.m. the day of the meeting by email to: [email protected] and will be made part of the written record but will not be read verbally at the meeting. Written public comments submitted by email should adhere to the following:

Clearly indicate the Agenda Item No. or specify “Public” in the Subject Line for items not on the agenda Include the submitter’s full name (Recommended but not required) Written public comments received by 4:00 p.m. the day of the meeting will be provided in their entirety to the City Council prior to the meeting and will be made part of the written record but will not be read verbally at the meeting.

Written public comments will be posted to the City’s website for review prior to the meeting.

AGENDA
Thursday, May 22, 2025 6:30 PM
SPECIAL MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. ROLL CALL
Councilmembers/ex officio EMID Directors Art Kiesel, Suzy Niederhofer, Patrick Sullivan, Phoebe Venkat, and Mayor/President Stacy Jimenez

3. PUBLIC
Pursuant to Government Code Section 54954.3(a), members of the public wishing to address the Council may do so, and the comments shall be limited to the Special Meeting notice topic(s). Speakers may join the Zoom meeting via the meeting link and using the “raise hand” feature and the Zoom host will call on people.

4. STUDY SESSION

4.1. Preliminary Budget for FY 202526 and FiveYear Financial Plan for FY 2025 26 to FY 202930
a) Staff Report
b) Action – By Minute Order, Provide Policy Direction

5. ADJOURNMENT
The public is invited to attend.

Any attendee wishing special accommodations at the meeting should contact the City Clerk’s Department at (650) 2863250 or [email protected] at least 48 hours in advance of the meeting. The City has a procedure for receiving and swiftly resolving requests for reasonable accommodation for individuals with disabilities, consistent with the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and resolving any doubt in favor of accessibility.

That procedure for receiving and resolving requests for accommodation is available at the City Clerk’s Office. All meetings are conducted in a manner consistent with applicable civil rights and nondiscrimination laws.

Any writings or documents provided to a majority of the City Council or EMID Board regarding any item on this agenda after the agenda packet was distributed will be made available for public inspection in the City Clerk Department at City Hall located at 610 Foster City Boulevard during normal business hours and at the meeting.

City Council meetings on FCTV on Comcast Channel 27 and AT&T Channel 99:

LIVE every 1st and 3rd Monday of the month
REPLAY next day at 1:00 pm (that week only)
REPLAY Saturday at 5:00 pm (only on Saturday the week the actual meeting occurs) City Council meetings on https://www.fostercity.org/community/page/fctvlivestream:

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings ondemand:
https://www.fostercity.org/agendasandminutes

1 CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
FOSTER CITY COUNCIL CHAMBERS
620 FOSTER CITY BOULEVARD
FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING HTTPS://FOSTERCITY ORG.ZOOM.US/J/82592136594 PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 620 Foster City Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

To Observe the Meeting via Teleconference/Video Conference:

Written public comments will be posted to the City’s website for review prior to the meeting.

AGENDA
Thursday, May 22, 2025 6:30 PM
SPECIAL MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. ROLL CALL
Councilmembers/ex officio EMID Directors Art Kiesel, Suzy Niederhofer, Patrick Sullivan, Phoebe Venkat, and Mayor/President Stacy Jimenez

4. STUDY SESSION

4.1. Preliminary Budget for FY 202526 and FiveYear Financial Plan for FY 2025 26 to FY 202930
a) Staff Report
b) Action – By Minute Order, Provide Policy Direction

5. ADJOURNMENT
The public is invited to attend.

City Council meetings on FCTV on Comcast Channel 27 and AT&T Channel 99:

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings ondemand:
https://www.fostercity.org/agendasandminutes

2 CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
FOSTER CITY COUNCIL CHAMBERS
620 FOSTER CITY BOULEVARD
FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING HTTPS://FOSTERCITY ORG.ZOOM.US/J/82592136594 PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 620 Foster City Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

To Observe the Meeting via Teleconference/Video Conference:

Written public comments will be posted to the City’s website for review prior to the meeting.

AGENDA
Thursday, May 22, 2025 6:30 PM
SPECIAL MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. ROLL CALL
Councilmembers/ex officio EMID Directors Art Kiesel, Suzy Niederhofer, Patrick Sullivan, Phoebe Venkat, and Mayor/President Stacy Jimenez

4. STUDY SESSION

4.1. Preliminary Budget for FY 202526 and FiveYear Financial Plan for FY 2025 26 to FY 202930
a) Staff Report
b) Action – By Minute Order, Provide Policy Direction

5. ADJOURNMENT
The public is invited to attend.

City Council meetings on FCTV on Comcast Channel 27 and AT&T Channel 99:

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings ondemand:
https://www.fostercity.org/agendasandminutes

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DATE: May 22, 2025

TO: Mayor and Members of the City Council President and Members of the Estero Municipal Improvement District (EMID) Board of Directors
FROM: Stefan Chatwin, City Manager
Nate Cruz, Finance Director
Waqas Hassan, Assistant Finance Director
Mimi Lam, Financial Services Manager
DEPARTMENT: City Manager, Finance
SUBJECT: REVIEW OF PRELIMINARY BUDGET FOR FISCAL YEAR (FY) 2025-26 AND FIVE-YEAR FINANCIAL PLAN FOR FY 2025-26 TO
FY 2029-30

RECOMMENDATION
It is recommended that the City Council review and by Minute Order, provide policy direction on the information provided in the Preliminary Budget for FY 2025-26 and Five-Year Financial Plan for FY 2025-26 to FY 2029-30 (“Budget and Five-Year Plan”).

EXECUTIVE SUMMARY
The Budget and Five-Year Plan is the combination of (a) the prior financial information reviewed by the Council including the CIP program, water and wastewater rates, the master fee schedule, and internal service funds, and (b) the final operating revenue and expense projections. The table in Attachment 1 summarizes the Budget and Five-Year Plan for the General Fund, and the full Budget and Five-Year Plan can be found here:
https://www.fostercity.org/finance/page/annual-budget.

Highlights of the Budget and Five-Year Plan include:
•Relatively stable revenue projections, with the exception that staff no longer forecasts reimbursement for shortfalls from property tax in lieu of vehicle licensing fees;

4.1 4.1 Staff Report

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•A new assumption of 2% unspent funds in personnel expenses each year due to normal vacancy rates;
•Annual transfers of $5 million from the General Fund to support capital projects; •A new internal service fund to support the transition to self-insured Worker’s Compensation;
•Small but increasing deficits in each fiscal year, which slowly erode reserve levels from 86% of annual expenses in FY 2025-26 to 41% over the five-year plan.

The budget and five-year plan reflects more realistic revenue and expense projections, some of which were previously too conservative, including the new assumption of 2% unspent funds in personnel expenses each year due to normal vacancy rates. These revised assumptions are likely to result in the need to transfer appropriation authority between department budgets, subject to City Manager approval. Transferred funds would still be subject to fund-level appropriation limits and all applicable expenditure rules such as hiring and procurement policies.

BACKGROUND/ANALYSIS
The City Council has held two budget study sessions to-date (March 3, 2025 and March 25, 2025) and this budget study session is the third of four planned budget meetings prior to the scheduled adoption on June 16, 2025. Its purpose is to review the Preliminary Budget for FY 2025-26 and the Five-Year Financial Plan for FY 2025-26 to FY 2029-30. City staff seeks policy direction from the City Council regarding the budget documents so that a final budget can be prepared for City Council adoption.

Please refer to the City Manager’s Budget Message, the Budget Guide, the Five-Year Financial Plan and the Financial and Personnel Summaries for the full details and analysis of the Budget and Five-Year Plan.

California Environmental Quality Act
Not Applicable

FISCAL IMPACT
Based on policy direction provided at tonight's Budget Study Session, City staff will proceed to prepare the FY 2025-26 Budget and Five-Year Financial Plan for FY 2025- 26 to FY 2029-30 for a June 2 public hearing followed by final adoption on June 16, 2025. Upon final adoption, the FY 2025-26 Budget will become effective July 1, 2025.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Staff Empowerment and Operational Excellence

4.1 4.1 Staff Report

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ATTACHMENTS:

Attachment 1 - General Fund (Funds 001 to 003) Five Year Financial Plan for FY 2025- 26 to FY 2029-30

4.1 4.1 Staff Report

6 City of Foster City, California
General Fund (Fund 001 to 003)
Five Year Financial Plan for the Years Ended June 30, 2030 Projected Five Year Financial Plan
Revenues by Source: 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 Property tax $35,506,460 $36,356,666 $37,433,686 $38,722,933 $40,243,382 $42,018,038 Excess ERAF $3,600,000 $3,600,000 $3,708,000 $3,819,240 $3,933,817 $4,051,832 Transient Occupancy Tax $4,300,000 $4,600,000 $4,738,000 $4,880,140 $5,026,544 $5,177,340 Property Taxes in-lieu of
Vehicle License Fee $4,631,493 $2,680,715 $1,829,065 $921,164 $942,803 $462,007 Sales Tax $4,003,133 $3,992,179 $4,068,374 $4,165,743 $4,251,719 $4,323,823 Business License Tax $4,061,000 $4,100,000 $4,223,000 $4,349,690 $4,480,181 $4,614,586 Charges for current services -
Recreation $1,640,589 $1,781,431 $1,947,620 $2,163,100 $2,245,568 $2,330,166 Charges for current services -
CDD & Others $651,732 $566,739 $583,741 $601,253 $619,290 $637,869 Permits $1,493,280 $2,721,093 $2,842,289 $2,444,595 $1,454,476 $1,498,110 Franchise Taxes $1,377,700 $1,377,700 $1,377,700 $1,377,700 $1,377,700 $1,377,700 Interest Income $2,097,553 $1,713,900 $1,413,900 $1,173,900 $981,900 $981,900 Rentals - City/EMID $1,063,700 $650,301 $610,301 $610,301 $610,301 $610,301 Rentals - Parks and Recreation $500,000 $549,121 $604,033 $694,638 $729,370 $765,838 Other (Fines, Shared Services,
Street Sweeping, Other) $524,985 $920,935 $1,279,430 $1,297,346 $1,315,803 $1,334,811 Other taxes (real property tax
transfer) $268,600 $304,900 $304,900 $304,900 $304,900 $304,900 Intergovernmental (SB90,
Grants, etc) $140,000 $144,200 $148,526 $152,981 $157,571 $162,298 Total Revenues $65,860,225 $66,059,880 $67,112,565 $67,679,624 $68,675,325 $70,651,519 Projected Expenditures (1) $61,667,827 $64,885,243 $67,414,507 $68,899,793 $71,818,875 $73,262,966 Net revenues over (under)
expenditures before
transfers $4,192,398 $1,174,637 ($301,942) ($1,220,169) ($3,143,550) ($2,611,447) Net Transfers In (Out) ($5,750,000) ($5,000,000) ($5,000,000) ($5,000,000) ($5,000,000) ($5,000,000) Net Increase (Decrease) in
Fund Balance ($1,557,602) ($3,825,363) ($5,301,942) ($6,220,169) ($8,143,550) ($7,611,447) Opening Fund Balance $63,480,198 $61,922,596 $58,097,233 $52,795,291 $46,575,122 $38,431,572 Reserve Balance (2) $61,922,596 $58,097,233 $52,795,291 $46,575,122 $38,431,572 $30,820,125 Minimum Reserve of 50% $32,442,622 $33,707,254 $34,449,897 $35,909,438 $36,631,483 $37,730,427 Excess (Deficient) Reserves $29,479,974 $24,389,979 $18,345,394 $10,665,684 $1,800,089 ($6,910,302) Reserve Balance as % of Next
Year's Operating Expenditures 95.4 % 86.2 % 76.6 % 64.9 % 52.5 % 41.2 % (1) Expenditures for FY 2025-26 represent budgeted appropriations; expenditures for FY 2026-27 to FY 2029-30 are projections. (2) The City is able to meet the City Council Reserve Policy of 50% through FY 2028-29, but is projected to fall below it in the following year.

City of Foster City's FY 2025-26 Preliminary Budget Page 3

4.1 Attachment 1 - General Fund Five Year Financial Plan for FY 2025-26 to FY 2029-30

Foster City City CouncilMay 22, 2025

Foster City City Council
May 22, 2025