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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Continued discussion about General Fund Future Revenue Initiatives.
1. Motion to provide Direction
COUNCIL ACTION
Item Type: Action Item
Approved for January 27, 2026 calendar
EXECUTIVE SUMMARY
This report is a continuation of Council’s discussion from the December 9, 2025, City Council meeting, related to the Fiscal Year 2025-26 First Quarter Financial Status Report, following an overview of the General Fund Forecast. This report continues the discussion and seeks the City Council’s direction on potential revenue initiatives.
RECOMMENDATION
That the City Council provide policy directions to guide prioritization of exploring and/or implementing revenue initiatives as described in this staff report.
ANALYSIS
As discussed at the December 9, 20025 City Council meeting, the City’s General Fund forecast incorporates assumptions informed by current economic conditions, historical trends, and operational factors, with revenue projections assuming full collection of the revised revenue budget. Based on most current information, staff have updated multiple assumptions used in projecting the City’s Five-Year Financial Forecast. Major assumptions used in the forecast follow.
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Revenue Assumptions:
Category FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Property Taxes 4.0% 2.4% 3.5% 3.5% 3.5%
Sales Taxes (2.4%) 2.1% 2.7% 2.9% 2.9%
Utility Users Taxes 3.8% (0.6%) 1.6% 2.2% 2.5%
Occupancy Taxes 4.3% 9.6% 6.4% 5.0% 5.0%
Landfill Host Fees $5.7M $5.7M $5.7M $2.9M N/A
Parking Tickets $6.6M $5.8M $5.9M $6.0M $6.2M
Transfer from Electric
Fund
10.8% 10.0% 10.0% 10.0% 10.0%
Revenue Collection
Rate
100.0% 100.0% 100.0% 100.0% 100.0%
Expenditure Assumptions:
Category FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Salaries and Benefits 7.3% 5.5% 3.1% 4.1% 2.6%
Contractual Services $17.4M $14.1M $13.8M $14.0M $14.1M Other Discretionary
M&O
7.9% 0.0% 0.0% 0.0% 0.0%
Non-Discretionary M&O 17.5% 3.7% 3.2% 0.4% 2.1%
Transfers to CIP $890K $10.0M $10.0M $10.0M $10.0M
Transfers to Other
Funds
$1.6M $4.4M $4.4M $4.4M $3.9M
Expenditure Utilization
Rate – Salary and
Benefits
98.0% 98.0% 98.0% 98.0% 98.0%
Expenditure Utilization
Rate – Maintenance and
Operations
80.0% 80.0% 80.0% 80.0% 80.0%
The following table displays the updated five-year General Fund forecast as of December 9, 2025.
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General Fund Five-Year Forecast
(In Millions)
Projected
25-26
Projected
26-27
Projected
27-28
Projected
28-29
Projected
29-30
Revenues $349.2 $345.1 $359.0 $364.7 $370.8
Expenditures (348.0) (371.3) (381.3) (393.2) (401.6)
Budgetary Surplus/(Deficit) $1.2 ($26.2) ($22.3) ($28.5) ($30.8) Projected Charter Reserve
Requirement
$44.8 $45.9 $47.5 $49.1 $50.8
Projected Budgetary Fund
Balance
$139.4 $113.2 $90.9 $62.4 $31.6
Reserve %* 39.6% 29.9% 23.4% 15.6% 7.7%
Non-compliance with
the Reserve Policy
Charter
Violation
*Council adopted Reserve Policy requires a minimum of 25% of appropriations with a target of 35% of appropriations.
.
In order for the City to remain in compliance with the City Council’s minimum reserve policy requiring a balance equal to 25% of appropriations, the City needs a minimum of
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approximately $20 million in budget balancing strategies annually (a 4-year total of $80 million) between FY 2026-27 and FY 2029-30. The budget balancing strategies will need to be a combination of new revenues and cost reductions.
General Fund Future Revenue Initiatives
With the General Fund Five-Year Forecast information as support, staff are seeking the City Council’s policy direction on prioritization of exploring and implementing revenue initiatives. The potential revenue sources that have been identified and discussed include:
Taxes (Requiring Ballot Measure)
¼ Cent Sales Tax ($8.0M - $10.0M) - Recurring
Business License Tax ($2.1M - $4.8M) - Recurring
Commercial Vacancy Tax (Amount TBD) - Recurring
Hotel TOT ($800K per 1.0%) - Recurring
Parking Tax on Private Parking Lots ($2.2M - $3.4M) - Recurring New Proposal: Public Safety Parcel Tax (Amount TBD) - Recurring Other Revenue Initiatives
Additional Increased Parking Fees (Amount TBD) - Recurring oThe recent increase was implemented in August 2025, but market analysis may support a further increase.
Development Concierge Fee ($0.5M - $1.0M) - Recurring
Digital Billboards ($1.0M - $1.8M) - Recurring
Digital Kiosks ($600K) - Recurring
EV Chargers in Public Right-of-Way (Amount TBD) - Recurring Existing Leases on City Owned Properties – Renegotiation (Amount TBD)- Recurring
Ground Leasing of City Property (Amount TBD) - TBD
Ice Skating Rink (Amount TBD) – Recurring
Increased UUT from anticipated growth in the Streaming Industry (Amount TBD) - Recurring
Public Safety Impact Fees ($45K) - Recurring
Restaurants in the parks (Amount TBD) - Recurring
Transfer of City Development Rights (Amount TBD) - TBD Transfer of Density Between Property Owners (Amount TBD) - TBD Transportation Impact Mitigation Fee (Amount TBD) – Recurring Purchase of Investment Properties (Amount TBD) – One-Time or Recurring 9b5
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New Proposal
Fiber Optic Business Strategy (Amount TBD) – Recurring Public Facility Naming Rights (Amount TBD) – One Time or Recurring Increased Transit Occupancy Tax (TOT) from temporary lifting of moratorium on Short-term Rentals Ban in Anticipation of the FIFA World Cup and 2028 Olympics (Amount TBD) - Temporary
In summary, while the City currently maintains a healthy reserve level, the trend of expenditure growth outpacing revenue growth due to higher cost of labor and materials, and ongoing economic uncertainties, necessitates continued vigilance in financial planning. In alignment with the City Council’s policy direction, staff will continue to refine forecasts, pursue revenue opportunities, and implement efficiency building / cost reducing strategies in support of the City’s long-term fiscal sustainability.
STAKEHOLDERS/OUTREACH
Not Applicable
FISCAL IMPACT
There is no fiscal impact at this time. Based upon Council’s policy direction, staff will return at a later date to present more detailed fiscal impacts associated with specific revenue alternatives.
ENVIRONMENTAL REVIEW (CEQA/NEPA)
This item is considered a ministerial activity and therefore, not subject to CEQA review.
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements. 9b5
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ALTERNATIVES TO STAFF RECOMMENDATION
Alternative 1: Do not provide policy direction on prioritization of exploring and/or implementing new revenue initiatives. Doing so would result in a continued structural imbalance in the City’s five-year financial forecast.
Alternative 2: Council may provide any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Submitted by:
Jack Liang, Director of Finance
Prepared by:
Linda Moossaian, Revenue Manager
Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
N/A