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1 Budget Performance Summary
Fiscal Year 2024-25 Q4
Through Period Ending June 30, 2025
At the close of Fiscal Year 2024-25, citywide revenues totaled $336.5 million (113%), outpacing the prior year by nearly $59 million. The increase was largely driven by onetime or restricted revenues such as developer bond proceeds, internal service reimbursements, intergovernmental funding, solid waste charges, and public facility and transportation impact fees.
Citywide expenditures totaled $262.5 million (65%), consistent with prior year spending levels and reflecting the timing of multi-year capital and infrastructure projects. The yearend results represent a positive position overall, as the City continues to maintain strong operating performance and manage expenses within budget parameters.
These figures are unaudited and subject to adjustment during the year-end closing and audit process.
General Fund Revenues
Total General Fund revenues reached $77.7 million (102%), slightly above projections and prior year results.
• Property Tax Revenues – $30.3 million (107%). Collections continued to grow due to increased assessed valuation and stable payment trends. • Sales Tax Revenues – $19.5 million (100%). Growth remained consistent with statewide trends, supported by strong local retail performance. • Other Taxes – $11.9 million (102%). Includes transient occupancy, business license, and utility-user taxes, reflecting moderate growth year-over-year. • Licenses and Permits – $1.9 million (87%). Building and development-related fees slowed slightly from the prior year due to project timing. • Fines and Forfeitures – $618 thousand (37%). Revenues were below expectations due to limited collection activity. Staff are currently reviewing collection options and potential process improvements to enhance future recovery. • Intergovernmental Revenues – $348 thousand (116%). Includes grant reimbursements and state revenue allocations.
• Charges for Services – $10.0 million (96%). Reflects overhead reimbursements and service fees from other City funds.
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2 • Investment Earnings – $2.2 million (215%). Performance exceeded expectations due to rising interest rates and favorable cash balances. • Other Revenue – $993 thousand (148%). Includes recoveries, reimbursements, and miscellaneous receipts.
General Fund Expenditures
Total General Fund expenditures were $73.9 million (92%), tracking closely with plan and reflecting effective cost management across departments. • Personnel Services – $48.3 million (103%). Reflects negotiated labor adjustments and nearly full staffing levels in General Fund Departments. • Professional Services – $8.6 million (85%). Includes contractual and consulting costs, which came in below budget due to project deferrals. • Supplies – $14.8 million (86%). Includes materials, utilities, and maintenance supplies across all divisions.
• Capital Outlay and Improvement – $1.4 million (32%). Reflects timing of smaller equipment and facility improvements.
• Transfers Out – $931 thousand (73%). Includes General Fund contributions to other City funds.
The General Fund closed the fiscal year in a positive operating position, with revenues exceeding expenditures by approximately $3.8 million. These unaudited results indicate a moderate operating surplus that will help strengthen reserves and support fiscal stability entering FY26.
Major Funds Summary
• Measure Q (Fund 105) – Sales-tax revenues totaled $3.7 million, with minimal expenditures limited to the State’s administration fee. No project spending occurred in FY25, and additional spending authority was added in FY26 to support upcoming public-safety and infrastructure priorities.
• Measure M (Fund 320) – Revenues of $10.4 million (103%) and expenditures of $10.4 million (98%) remained balanced, supporting ongoing police and fire operations. • Development Services (Fund 340) – Revenues totaled $12 million (119%) and expenditures $6.2 million (62%), driven by strong permitting and impact-fee activity. • Gas Tax / Street Improvement (Fund 420) – Revenues of $2.6 million (103%) and expenditures of $3.2 million (88%) reflect the timing of state disbursements and street rehabilitation projects.
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3 • Gas Tax / Street Improvement SB1 (Fund 425) – Revenues of $2.3 million (103%) and expenditures of $2.7 million (53%) reflect project timing delays with several roadway improvements carried forward into FY26.
• Measure K (Fund 440) – Revenues totaled $11.0 million (215%), exceeding projections due to higher-than-expected project reimbursements and investment earnings. Expenditures of $4.0 million (52%) reflect project timing and carryforwards into FY26.
• Fire Facilities Fees (Fund 530) – Revenues of $2.8 million (179%) and expenditures of $1.5 million (54%) represent strong development-related impact fee activity tied to future station and equipment needs.
• Government Facilities Fees (Fund 540) – Revenues totaled $9.5 million (189%), exceeding projections due to strong development activity. Expenditures of $498 thousand (64%) reflect capital purchases and facility expansion projects continuing into FY26.
• Golf Course (Fund 620) – Revenues of $2.0 million (111%) and expenditures of $1.9 million (91%) show a continued operating gap offset by General Fund support; staff continues to explore revenue-generation strategies to improve self-sufficiency. • Sewer O&M (Fund 640) – Revenues of $22.9 million (114%) reflecting positive results from the recent rate increase, while expenditures were $29.0 million (63%). The fund continues to recover from multiple-year deficits and is expected to operate in deficit for the next few years until new rate adjustments fully stabilize operations. • Solid Waste (Fund 660) – Revenues of $26.5 million (111%) and expenditures of $19.4 million (80%) indicate healthy fund performance and sufficient reserves to support equipment replacement and future compliance requirements. • Water O&M (Fund 680) – Revenues totaled $17.0 million (120%) and expenditures $20.8 million (79%). Higher revenues reflect receipt of a nationwide settlement, stronger investment earnings, and intergovernmental grant funding. Similar to the Sewer Fund, the Water Fund is recovering from prior-year shortfalls and is expected to experience planned deficits until recently adopted rate adjustments generate sufficient revenue to restore structural balance.
• Engineering (Fund 810) – Revenues totaled $6.6 million (123%), driven by strong inspection fee activity tied to ongoing development. Expenditures of $2.5 million (79%) reflect efficient cost management and timely completion of design and constructionsupport work for City projects.
Analysis & Outlook
The FY25 results reflect strong revenues, controlled spending, and stable reserves.
Variances largely stem from project timing and restricted carryforwards rather than operational surpluses. The City enters FY26 in a solid financial position, with capacity to sustain services and invest in infrastructure while maintaining fiscal balance.