FY 2025/26 Mid-Year Budget Adjustment Requests & 2nd Quarter Forecast 03/03/2026
Purpose of Today’s Presentation
Share mid-year budget adjustment requests
Explain why they are needed
Show how they are paid for
Review the Second Quarter forecast
Confirm the City can afford the requests and maintain services
What Is a Mid-Year Budget Adjustment
FY 2025–26 Mid-Year Requests Overview
Supports safety, services and infrastructure
Items are one-time expenses
Funded by fund balance or grants
Helps avoid service reduction
Total Requests: $1.47M
$0.53M Infrastructure
$0.50M Grants
$0.44M Special Revenue
Infrastructure Fund Requests - $530,000
Infrastructure Fund
Fund/Department
Amount
Funding Source
Justification
Community & Library Services
$390,000
Fund balance reserves from fund 314.
Funding for Newland House Museum renovations addressing hazardous materials and preservation issues identified during inspection.
Public Works
140,000
Fund balance reserves from fund 314.
Supports inspection services to maintain facilities and permit-backed projects.
Infrastructure Fund Total
$530,000
Grant Fund Request - $499,000
Grant Fund
Fund/Department
Amount
Funding Source
Justification
Community Development
$499,000
Completely offset with additional grant funding.
Appropriations are needed for the California Coastal Commission Local Coastal Program Planning Grant, approved on resolution 2023-20.
Grant Fund Total
$499,000
Special Revenue Funds Requests - $441,993
Special Revenue Funds
Fund/Department
Amount
Funding Source
Justification
Police
$310,000
Fund balance reserves from funds 212, 214 & 242.
Supports turbine wheels, spotlight replacement, inspections, investigative software, and overtime, supporting airship readiness, crew safety, and narcotics enforcement.
City Manager
81,993
Fund balance reserves from fund 243.
Additional funding is needed to replace aging and failing audio-visual infrastructure that has begun disrupting publicly noticed meetings.
Community & Library Services
50,000
Fund balance reserves from fund 226.
Funds are needed to ground playground equipment because of overhead Edison electrical lines.
Special Revenue Funds Total
$441,993
FY 2025/26 Second Quarter General Fund Forecast Overview Based on year-to-date results
Includes full-year projections
Revenues tracking above budget
Spending closely managed
Shows sufficient funds to cover costs
General Fund Revenues
Description
FY 2025/26 Adopted Budget
FY 2025/26 Revised Budget
FY 2025/26 Forecast
Revised to Forecast Variance
Revised to Forecast % Variance
Taxes
216,512,986
216,512,986
216,042,424
(470,562)
-0.22%
Revenue from Other Agencies and Charges for Services
37,917,297
38,242,508
41,399,885
3,157,377
8.26%
Fines & Forfeitures and Use of Money & Property
28,987,545
28,990,745
30,140,722
1,149,977
3.97%
License & Permits
9,974,645
10,135,317
10,511,744
376,427
3.71%
Other Revenue and Non-Operating Revenue
6,709,395
6,709,395
10,025,662
3,316,267
49.43%
Grand Total
300,101,868
300,590,951
308,120,437
7,529,486
2.50%
General Fund Expenses
Description
FY 2025/26 Adopted Budget
FY 2025/26 Revised Budget
FY 2025/26 Forecast
Revised to Forecast Variance
Revised to Forecast % Variance
Personnel
202,886,962
203,680,462
198,862,229
(4,818,233)
-2.37%
Operating
54,517,629
64,394,978
67,114,119
2,719,141
4.22%
Non-Operating Expenses
42,111,081
42,111,081
42,092,200
(18,881)
-0.04%
Grand Total
299,515,672
310,186,521
308,068,548
(2,117,973)
-0.68%
Key Takeaways
Requests support safety, services, and infrastructure
Adjustments are one-time costs
Funded with existing funds and grants
City can afford these requests
Services will continue without disruption
Questions?