DATE: September 17, 2025
TO: Council Budget and Finance Committee
FROM: Assistant City Manager
SUBJECT: Discuss Fall Budget Revision and Future Topics
RECOMMENDATION
That the Council Budget and Finance Committee reviews the schedule to prepare for the fall budget revision and provides input on the 2025 agenda planning calendar.
SUMMARY
In light of the City’s financial situation, staff plan to prepare a series of written updates for the full City Council over the next two months in preparation for the fall budget revision. Staff are seeking Committee Members’ feedback on the context and cadence of these updates, as well as the schedule of information reports for the Committee.
BACKGROUND & DISCUSSION
As part of the FY 25-26 budget adoption, Council directed staff to return for a fall revision with a proposal that reduces or eliminates the deficit for the fiscal year. Since June, staff have intensively analyzed the City’s finances to better understand the deficit and evaluate potential cost saving strategies. Through this analysis, staff have found that the financial picture is worse than what was presented in the adopted FY 25-26 budget. Staff have communicated this new picture to the City Council and the community.
In light of the City’s financial situation, staff plan to prepare a series of written updates for the full City Council over the next two months in preparation for the fall budget revision. Staff are seeking Committee Members’ feedback on the context and cadence of these updates. Below is an initial list. Staff will share a more comprehensive proposal at the September 17, 2025, meeting for discussion.
Initial list of written updates:
By September 30:
Measure C update
FY26 First quarter salary & benefits expenditure trends By October 15:
FY25 unaudited summary of general fund
Summary of funds that are supported by transfers from the general fund FY26 First quarter supplies & services expenditure trends By October 30:
Quarterly general fund revenue update
In addition to the list above, staff prepare annual informational reports for the Committee for oversight and transparency. Staff are suggesting the following informational reports, which are in line with what has been presented to the Committee in past years. Staff are seeking Committee Members’ feedback on this suggested calendar.
DATE
SUGGESTED TOPICS (subject to change)
October 15, 2025
City Benefit Liabilities and Funding Plan
Water Minimum Purchase Quantities (Report from Director of Public Works & Utilities) November 19, 2025
FY 2025 Annual Audit Process (Presentation by External Auditor) December 17, 2025
Fall Revise Debrief
Mid-Year and FY 2027 Budget Process and Calendar Review January 21, 2026
Investment Portfolio Review (Presentation by External Investment Manager) February 18, 2026
General Fund Long-Range Financial Model Update
March 18, 2026
FY 2026 Mid-Year Budget Review
April 15, 2026
FY 2027 Proposed Budget Discussion, including the Mayor & City Council’s Budget May 20, 2026
TBD
June 17, 2026
FY 2027 Budget Debrief
July 15, 2026
Council Recess
August 19, 2026
TBD
September 16, 2026
Review of City Issued Debt
Recommended by: Mary Thomas, Assistant City Manager
Approved by:
_________________________________
Jayanti Addleman, Interim City Manager
ATTACHMENT I