Budget and Finance Committee
Monthly General Fund and Measure C Update
For Period Ending June 30, 2026
Presented: August 19, 2026
• Staff is continuing to monitor revenues and expenses closely:
o There are still a few outstanding revenues such as June 2026 sales tax, the second reimbursement from OPEB Trust, additional property tax and property transfer tax, utility users tax (UUT), and transient occupancy tax (TOT). o Projected Deficit (Expenses exceeding Revenues) is $1.7 million more than projected in June for a total of $2.9 million due to slowing revenues, and difficult to estimate key expenses, such as CalPERS costs and services and supplies o After close (around September 30, 2026), staff will evaluate all transfers in and transfers out to close with revenues matching expenses. As part of FY 2026-27 Budget Resolution, Council authorized staff to increase transfers if required to end year with revenues balanced to expenses.
Monthly Update As of June 30, 2026 - Highlights
• Revenue (including transfers) trending $1.3 million above June projection. o Sales Tax and Property Tax anticipated to exceed projections by over $4 million o UUT and Charges for Service below projections by nearly $3 million • Expenses trending almost $3 million above June projection primarily associated with:
• Services and supplies exceeding projection by $2 million, which was offset by reduced costs for maintenance and utilities and increased charge outs of salaries to other funds. (This was an aggressive projection that was still far below the original budget of $15 million.)
• Salaries and benefits exceeding projection by $2.3 million, which was primarily associated with difficult-to-estimate special pays, leave payouts, and CalPERS costs.
Monthly Update As of June 30, 2026 - Highlights
• Column B (Projection from June 17, 2026 CBFC Presentation): This is the projection presented at the June 17, 2026 CBFC meeting. • Column C (Unaudited Actuals): These are the amounts actually received or paid. Timing of receipt of revenue or payment of expense depend on the revenue or expense and will be discussed with the next slide.
• Column D (Projection as of August 2026): The projection is based on what is known and a forecast. It is described for each line in the Notes column. • Column E (Difference between August and June Projection): Column D – Column B
Monthly Update As of June 30, 2026 – Table Key
General Fund Revenue - As of 6/30/2026
• Revenue is still coming in - these numbers aren’t final • Property Tax and Sales Tax are Trending Up
• Offset by decreases in UUT, Charges for Services, and Real Property Transfer Tax Column A
COLUMN B
FY2026
PROJECTION AS
OF JUNE CBFC
MEETING
COLUMN C
FY2026
UNAUDITED
ACTUALS
THROUGH JUNE
30, 2026
COLUMN D
FY2026
PROJECTION AS
OF AUGUST
2026
COLUMN E
AUGUST 2026
FORECAST MINUS
JUNE 2026 CBFC
PRESENTATION
(D - B)
% OF JUNE
PROJECTION NOTES
Property Tax 79,553,798
80,061,274 80,561,274 1,007,476 101% Actuals plus one more property tax at the end of August.
Sales Tax 46,717,100 45,822,345 49,918,230 3,201,130 107% Actuals for 11 months plus estimate for June payment Utility Users Tax 25,601,609 22,343,954 22,843,954 -2,757,655 89% Based on prior years for providers who have not paid yet Franchise Fees 12,998,088 12,880,267 12,880,267 -117,821 99% Assume all payments received Real Property Transfer Tax 10,500,000 9,451,748 10,313,319 -186,681 98% Actuals plus one more payment for June Transient Occupancy Tax 2,630,445 2,373,401 2,873,401 242,956 109% Based on prior years for providers who have not paid yet Cannabis Tax 630,815 638,057 638,057 7,242 101% Assume all payments received Business License Tax (including Technology Fee) 3,127,803 3,294,717 3,294,717 166,914 105% Assume all payments received Other Taxes | Emergency Services Facilities
Excise Tax 2,363,695
2,382,732 2,382,732 19,037 101% Assume all payments received Charges for Services 14,000,000 12,753,656 12,753,656 -1,246,344 91% Assume all payments received Inter-Governmental 7,483,421 7,418,709 7,418,709 -64,712 99% Assume all payments received Fines & Forfeitures 2,538,045 3,106,688 3,106,688 568,643 122% Assume all payments received Other Revenues 1,200,000 1,262,043 1,262,043 62,043 105% Assume all payments received Interest & Rents 12,000 10,452 10,452 -1,548 87% Actuals Subtotal Revenues 209,356,819 203,800,043 210,257,499 900,680 100% Proposed Transfers-In to General Fund - As of 6/30/2026 • More eligible expenses to be reimbursed through OPEB Trust Takeaway: Revenue is projected to be $1.3 M higher than the June projection Column A
COLUMN B
FY2026
PROJECTION AS
OF JUNE CBFC
MEETING
COLUMN C
FY2026
UNAUDITED
ACTUALS
THROUGH JUNE
30, 2026
COLUMN D
FY2026
PROJECTION AS
OF AUGUST
2026
COLUMN E
AUGUST 2026
FORECAST
MINUS JUNE
2026 CBFC
PRESENTATION
(D - B)
% OF JUNE
PROJECTION NOTES
Transfers-In (Cost Allocation) 2,899,587
2,899,587 2,899,587 0 100% Fixed Transfer
Transfers-In (Gas Tax) 246,000 246,000 246,000 0 100% Fixed Transfer Transfers-In (Community Facility
District) 473,000 473,000 473,000 0 100% Fixed Transfer Transfers-In (Measure C) 9,750,000 9,750,000 9,750,000 0 100% Fixed Transfer Transfers-In (OPEB Trust) 3,000,000 1,323,899 3,442,137 442,137 115% Will move to revenue in FY 2026/27 Transfers-In (Other Funds - Authorized
6/2025) 5,600,000 5,600,000 5,600,000 0 100%
Economic Development Fund ($250,000), General
Liability ($1,300,000), Fleet Capital ($800,000),
Property Acquisition Management ($600,000), 238
Properties ($2,650,000)
Transfers-In (Other Funds - Authorized
11/2025) 3,137,036
0 3,137,036 0 100% Pending Final Numbers
Transfers In (Worker's Compensation) 4,000,000 0 4,000,000 0 100% Pending Final Numbers Subtotal Transfer Ins 29,105,623 20,292,486 29,547,760 442,137 102% Total Revenues & Transfers-In 238,462,442 224,092,529 239,805,259 1,342,817 101% General Fund Expenses As of 6/30/2026
• Salaries close to 100% of June Projection; special pays, leave pay-outs, and benefits $2.4 million greater than June Projection • Supplies and Services $1.8 million greater than June Projection Takeaways: Expenses are $3 M higher than the June projection The projected budget shortfall of $2.9 million is $1.7 M higher than the June projection Column A
COLUMN B
FY2026
PROJECTION AS OF
JUNE CBFC
MEETING
COLUMN C
FY2026 UNAUDITED
ACTUALS THROUGH
JUNE 30, 2026
COLUMN D
FY2026
PROJECTION AS OF
AUGUST 2026
COLUMN E
AUGUST
2026 FORECAST
MINUS JUNE 2026
CBFC PRESENTATION
(D - B)
% OF JUNE
PROJECTION NOTES
Salary 103,219,078 103,089,150
102,280,653 -938,425 99% Assume all completed including accruals Overtime 9,900,000 10,071,233 10,071,494 171,494 102% Assume all completed including accruals Leave Pay-Out & Special Pays Budget 9,300,000 9,127,328 10,420,276 1,120,276 112% Assume all completed including accruals Subtotal Salaries 122,419,078 122,287,711 122,772,423 353,345 100% CalPERs Retirement Costs 54,000,000 49,217,286 55,838,579 1,838,579 103% Actuals + outstanding Unfunded Actuarial Liability Payment Workers' Compensation Contribution 6,599,101 6,581,914 6,581,914 -17,187 100% Assume all completed including accruals OPEB | MERP | 401a 4,124,637 4,306,741 4,306,740 182,103 104% Assume all completed including accruals FICA/Medicare 1,691,916 1,691,608 1,691,608 -308 100% Assume all completed including accruals Healthcare 15,000,000 14,942,118 14,942,118 -57,882 100% Assume all completed including accruals Other Benefits 592,200 663,909 663,909 71,709 112% Assume all completed including accruals Subtotal Benefits 82,007,854 77,403,576 84,024,868 2,017,014 102% Subtotal Salaries & Benefits 204,426,932 199,691,287 206,797,291 2,370,359 101% Maintenance & Utilities 2,174,970 1,691,582 1,691,582 -483,388 78% Assume all completed including accruals Supplies & Services 8,212,471 9,626,749 10,036,749 1,824,278 122% Carry Forward Internal Service Fees 22,093,539 22,093,539 22,093,539 0 100% Fixed Amount Capital 199,000 152,998 152,998 -46,002 77% Fixed Amount Subtotal Supplies & Services 32,679,980 33,564,868 33,974,868 1,294,888 104% Charge-Outs -8,045,411 -8,712,911 -8,712,911 -667,500 108% Assume all completed including accruals Transfers Out 10,634,829 10,695,584 10,674,829 40,000 100% Total Expenditures & Transfers-Out 239,696,330 235,238,828 242,734,077 3,037,747 101% Net Change in Reserve - Surplus / (Shortfall) -1,233,888 -11,146,299 -2,928,818 -1,694,930 General Fund Monthly Salary Report As of 6/30/2026:
• Payroll ended $1 million over June projection (0.6%) when excluding UAL, and $2.4 million over June projection when UAL is included
• Primarily associated with Overtime, leave payouts, and special pays Annual Budget excluding CalPERS UAL costs which are fixed: $163,842,537 Month Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 % of Payroll Year 7.7% 15.4% 23.1% 30.8% 42.3% 50.0% 57.7% 65.4% 73.1% 80.8% 92.3% 100.0% Straight Line Forecast 12,603,272 25,206,544 37,809,816 50,413,088 69,317,996 81,921,269 94,524,541 107,127,813 119,731,085 132,334,357 151,239,265 163,842,537 Actual Amount Spent
During Month including
UAL
15,613,676 15,784,536 16,010,803 15,943,571 23,154,956 15,683,752 15,599,308 15,063,398 14,974,311 15,172,379 21,543,724 15,146,874 UAL 2,583,637 2,692,785 2,711,713 2,750,032 4,076,444 2,734,414 2,699,880 2,686,829 2,672,263 2,664,086 3,986,033 2,558,569 Actual Payroll without
UAL
13,030,039 13,091,751 13,299,090 13,193,539 19,078,512 12,949,338 12,899,428 12,376,569 12,302,048 12,508,293 17,557,691 12,588,306 Year To Date without
UAL
13,030,039 26,121,790 39,420,880 52,614,419 71,692,931 84,642,269 97,541,697 109,918,266 122,220,314 134,728,606 152,286,297 164,874,603 % of Budget Spent 8.0% 15.9% 24.1% 32.1% 43.8% 51.7% 59.5% 67.1% 74.6% 82.2% 92.9% 100.6% (Over) Under Budget (426,767) (915,246) (1,611,064) (2,201,331) (2,374,935) (2,721,001) (3,017,157) (2,790,453) (2,489,229) (2,394,250) (1,047,032) (1,032,066) General Fund Monthly Overtime Report
Takeaway: Overtime was $171k over budget (2%), but much less than prior years Compared to Previous Years FY 21 FY 22 FY 23 FY 24 FY 25 FY 26
Projected
Police 3,583,144 4,216,208 5,130,300 5,749,813 7,179,172 4,479,696 Fire 6,820,206 7,439,117 7,286,285 7,615,082 8,170,285 5,282,386 Other 445,108 587,898 700,974 751,986 592,558 309,149
Total 10,848,458 12,243,223 13,117,559 14,116,881 15,942,015 10,071,231 Actuals
Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Total PD* 530,178 521,065 575,978 500,807 638,021 425,406 287,265 223,861 177,424 146,236 230,660 222,795 4,479,696 Fire* 580,009 644,260 695,547 515,940 626,229 429,262 193,256 280,891 258,588 231,848 441,384 385,172 5,282,386 Other 17,923 31,533 36,105 30,692 32,776 20,158 16,014 15,058 14,426 11,575 35,143 47,746 309,149 Total 1,128,110 1,196,858 1,307,630 1,047,439 1,297,026 874,826 496,535 519,810 450,438 389,659 707,187 655,713 10,071,231 Total Overtime Spent 10,071,231
Forecasted Overtime
JUNE 2026 9,900,000
Difference between
Forecast and Actual 171,231
Measure C Projection As Of June 30, 2026
COLUMN B
FY2026 PROJECTION AS
OF JUNE CBFC
MEETING
COLUMN C
FY2026 UNAUDITED
ACTUALS THROUGH JUNE
30, 2026
COLUMN D
FY2026
PROJECTION AS OF
AUGUST 2026
COLUMN E
AUGUST 2026 FORECAST
MINUS JUNE 2026 CBFC
PRESENTATION
(D - B)
Starting Balance 21,187,629 21,187,629 21,187,629 0
Revenue
Measure C Sales Tax 20,772,899 17,814,976 20,814,976 42,077 Measure C Investment Earnings 240,008 459,978 459,978 219,970 Measure C OPEB Reimbursement 91,258 45,629 95,629 4,371 Transfer In: La Vista Park Reversal 5,000,000 5,000,000 Total Revenue 21,104,165 18,320,583 26,370,583 5,266,418 Expense
Salaries and Benefits 7,287,070 7,513,212 7,513,212 226,142 Maintenance and Utilities 20,052 18,236 18,236 -1,816
Supplies and Services 599,112 999,664 999,664 400,552
Internal Service Charges 524,719 524,719 524,719 0
Debt Service 4,382,125 4,382,125 4,382,125 0
Transfers Out 15,332,560 15,332,560 15,332,560 0
Total Expense 28,145,638 28,770,516 28,770,516 624,878
Net Change in Reserve - Surplus / (Shortfall) -7,041,473 -10,449,933 -2,399,933 4,641,540 Ending Balance 14,146,156 10,737,696 18,787,696 4,641,540 Takeaway: Measure C Ending Balance is projected to be $18.7 Million Questions / Discussion