Mid-Year Budget Review
Fiscal Year 2025-26
March 2, 2026
Overview
FY 2024-25 Closing Fund Balances
FY 2025-26 Mid-Year Update
Recommendations for Fiscal Year 2025-26
FY 2024-25 Closing Fund Balances
Ending Fiscal Year 2024-25
Fund
FY 2024-25
Budget Ending
Balance
FY 2024-25
Actual Ending
Balance Difference
General Fund $11,776,222 $14,027,279 $2,251,057
Development Services $2,144,200 $2,691,692 $547,492
Parks and Community
Services
$16,001 $25,774 $9,773
Airport $36,425 $175,936 $139,511
Measure C (2001/2030) $5,161,391 $5,604,332 $442,941
Measure Y $657,079 $1,022,938 $365,859
Housing Administration $0 ($84,361) ($84,361)
Ending Fiscal Year 2024-25
Fund
FY 2024-25
Budget
FY 2024-25
Actual
Savings or
(Deficit)
Development Services $0 $0 $0
Parks and Community
Services
$1,619,353 $1,619,353 $0
Airport $0 $0 $0
General Fund Supplement
Any savings indicated are part of the General Fund savings in the previous slide.
FY 2025-26 Mid-Year Update
Current Fiscal Year 2025-26
Description Amount
Community Assessment & Public Opinion
Survey $53,250
MD Assessment ballot cost 16,546
Lew Edwards Group-Engagement
&Consulting Services 104,375
HDL-Business License Ordinance/Fee Study 50,000
Net Appropriations $224,171
Mid-Year Budget Requests 157,400
Total $381,571
General Fund Supplemental Appropriations
Current Fiscal Year 2025-26
General Fund
Original
Budget
Revised
Budget
Difference
6/30/2025 Ending Balance
$16,774,736
Encumbrance carryover (2,747,457)
7/1/2025 Beginning Balance 11,776,222 14,027,279 2,251,057 Revised Revenue 67,612,196 67,996,058 383,862
Revised Expense (72,010,918) (72,254,282) 243,364
6/30/2026 Estimated Ending
Balance 7,377,500 9,769,055 2,391,555
General Fund Reserve-5%
Contingency (3,380,610) (3,380,610) 0
Unreserved, Unencumbered
General Fund Balance $3,996,890 $6,388,445 $2,391,555
Current Fiscal Year 2025-26
$63.9
$68.1
$15.3
$33.5
- 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000
REVENUE
EXPENSE
Millions
General Fund
Actual through December Budget
45%
27%
FY 2025-26 3rd Quarter Sales Tax
Original Budget 3rd Quarter Actual
Percentage of Actual
to Original Budget
$17,027,000 $4,627,035 27%
3rd Quarter over Quarter – July to September
up 11% (Cash Basis)
3rd Quarter over Quarter – July to September
up 6% (Adj for Economic Data)
Major Industry Groups UP ↑ Major Industry Groups DOWN ↓ General Consumer Goods Business and Industry
Autos and Transportation Food and Drugs
Fuel and Service Stations
Restaurants and Hotels
Building and Construction
State and County Pools
Other Sales Tax Impacts:
Measure C 3rd Quarter over Quarter
Up 26.75% Cash Basis.
Measure V
Up 17.6% through December
Current Fiscal Year 2025-26
Major Revenue
Sources -55% of GF 2025-26 Budget *Actual to Date
Percentage of
Budget
Sales Tax $17,027,000 $7,407,578 43.5%
Secured Property
Tax
$10,249,600 $5,576,784 54.4%
Vehicle in Lieu
Backfill
$10,343,000 $5,291,082 51.2%
*Received through January
Current Fiscal Year 2025-26
3rd Qtr Sales Tax Secured Property Tax Vehicle in Lieu
2021-22 $4,299,257 $4,310,774 $3,861,160
2022-23 $4,155,813 $4,732,623 $4,322,943
2023-24 $4,235,197 $5,154,563 $4,711,452
2024-25 $4,151,643 $5,290,427 $4,972,136
2025-26 $4,627,035 $5,576,784 $5,291,082
23.3% 24.5%
7.0%
-3.3%
9.8%
12.0%1.9%
8.9%
9.0%
-1.9%
2.6 %
5.5%
11.4%
5.4%
6.4%
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Major Revenues compared to Prior Years
Measure Y-
3rd-4thQuarters
over Prior 3rd-
4th Quarters
Net Cannabis
Tax to the City
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
4th 2019 4th 2020 4th 2021 4th 2022 4th 2023 4th 2024 4th 2025 (17%)
(56%)
67%
(11%)
637%
(4%)
Recommendations for FY 2025-26
Fiscal Year 2025-26 Recommendations
Request
General Fund Supplemental
Appropriation
Other Funding Source
For this Fiscal Year
City Clerk Remodel Project $20,000
Fire-Weed Abatement $60,000
Fire-AED Replacements $60,000 (Measure Y)
Police-Software $20,300 (Measure Y)
Housing-Administrative Costs $77,400 $352,600 (Affordable Hsg) Housing-Cal HOME Grant Administration $72,773 (Affordable Hsg) Engineering-Surveying Equipment $60,000(Dev Svcs)
Engineering-Scanning Services $25,000 (Dev Svcs)
Engineering-project management $25,000 (Dev Svcs)
Fleet-Carryover True-Up $109,645 (Fleet Repl)
Total $157,400 $725,318
Fiscal Year 2025-26 Recommendations
Finance Department
Delete one Payroll Supervisor ($155,000 annually)
Add one Senior Accountant ($155,000 annually)
No fiscal impact
Property Based Improvement District and Tourism
Based Improvement District
Budget authority based on reconciliation of actuals
received for delinquencies.
Fund 2500-Housing Administration
FY 2025-26
Original
Budget
Revised
Budget
Difference
to Original
Projected
Budget
Difference
to Revised
7/1/2025 Beginning
Balance $0 ($73,782) ($73,782) ($73,782) $0
Revised Revenue 741,161 741,161 0 258,790 (482,371)
Revised Expense (741,161) (666,801) 74,360 (605,283) 61,518 6/30/2026 Estimated
Ending Balance $0 $578 $578
($420,275) $420,853
Time Allocation
Affordable Housing 82% = $352,600
Non-Affordable Housing 18% = $77,400
Fund 2507-Cal HOME
$2.5 million Cal Home Grant
Awarded 10/4/22
Expired 10/3/25
Total Grant Amount Received $884,758
First Time Home Buyer Loans = $803,000
Owner Occupied Rehab Loans = $44,494
City Administration = $0
Self Help Administration Costs = $110,037
Grant Reimbursed Admin =$37,264
Shortfall = $72,773
Fund 1018-Parks and Community Services
No Mid-Year Recommendations (may need to come at
year-end)
Fee Increases (approved 12/2025)
Salary Savings
Zookeeper Contribution ($65K)
Reduction in Measure Y Cannabis Tax (4%)
Reduction in Zoo Revenue (due to construction)
MCSD Agreements
No-Outdoor Program (est $61k)
Yes-Youth Sports based on student participation (est $217k) Some additional revenue
Questions?