Fremont City Council Meeting: 05/13/25 07:00 PM
3300 Capitol Avenue Div/Dept: Finance Department
Fremont, CA 94538 Category: Budget
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5434) DOC ID: 5434
Updated: 5/9/2025 1:12 PM by Dina Lewis Page 1
FY 2025/26 PROPOSED OPERATING BUDGET - Presentation of Fiscal Year 2025/26 Proposed Operating Budget for the City of Fremont Contact Persons:
Name: David Persselin
Title: Finance Director
Div/Dept: Finance Department
Phone: 510-494-4631
E-Mail: [email protected]
Executive Summary: The FY 2025/26 Proposed Operating Budget has been developed and is presented for the City Council’s review and comment. Public hearings on the proposed budget are scheduled for June 3 and June 10, 2025, with adoption anticipated at the conclusion of the second public hearing.
BACKGROUND: This proposed budget addresses an anticipated slowdown in City revenue growth brought about by the federal government’s recent imposition of unusually high tariffs on imported goods. Consistent with the City Council’s foundational principal of fiscal sustainability, General Fund budgeted expenditures for the coming year of $277.8 million have been limited to fit within the projected ongoing resources without the use of the Budget Uncertainty Reserve.
DISCUSSION/ANALYSIS:
Fiscal Year 2025/26 Proposed Operating Budget
General Fund budgeted ongoing resources of $278.3 million will support total budgeted expenditures of $277.8 million. The proposed budget responds to the uncertainty in our economic environment by eliminating General Fund support for pavement maintenance and routine tree trimming and reducing funding for park and street median capital replacement.
Funding for sidewalks, facilities maintenance, and capital improvements to achieve compliance with ADA standards will continue at their current levels. Elimination of General Fund support will not affect pavement maintenance activities funded through State Gas Tax revenue and County Measures BB and F.
As the City anticipates a slowdown in revenue growth during FY 2025/26, the General Fund service enhancements included in the proposed budget are self-supporting: two additional fee-supported fire inspectors to implement a State-mandated defensible space inspection program to reduce wildfire risks and the replacement of multiple part-time staff with one full-time office specialist at the Animal Shelter to improve customer service.
Outside the General Fund, proposed enhancements include an additional day of homeless encampment cleanup services each week, continuation of the Keep Fremont Housed rental assistance program for homelessness prevention, funding for the Winter Relief program that provides temporary housing for homeless residents, and an increase to full-time staffing for the assistant chef position at the Lake Elizabeth Age Well Center.
Council Staff Report (ID # 5434) Meeting of May 13, 2025 Updated: 5/9/2025 1:12 PM by Dina Lewis Page 2
The proposed budget continues to incorporate the City Council’s and community’s highest priorities by maintaining funding for addressing and preventing homelessness, ensuring public safety, and pursuing environmental sustainability.
General Fund Reserves
The FY 2025/26 Proposed Operating Budget maintains the General Fund Contingency Reserve at 16.7% of budgeted expenditures and transfers out, or $46.4 million, a level consistent with City Council policy and the recommended practice of the Government Finance Officers Association of the United States and Canada.
The proposed budget anticipates that the $24.2 million Budget Uncertainty Reserve will be drawn down in the current year, leaving a balance of $6.7 million at the beginning of FY 2025/26.
FISCAL IMPACT: The City Council is not being asked to take action tonight on the FY 2025/26 Proposed Operating Budget other than to provide comments to staff. An initial public hearing will be held on June 3, 2025, with a second public hearing and adoption of the budget scheduled for June 10, 2025.
ENVIRONMENTAL REVIEW: This agenda item is not subject to the requirements of the California Environmental Quality Act (CEQA) per CEQA Guidelines Section 15378 as it is not defined as a “project.”
LINK: The FY 2025/26 Proposed Operating Budget is posted on the City’s website at https://www.fremont.gov/government/departments/finance/financial-reports.
RECOMMENDATION: Accept staff’s budget presentation and provide comments.