May 8, 2025
Proposed General Fund Budget
Fiscal Year 2025/2026
General Fund Revenues
July 2024 to April 2025
2 | May 8, 2025
FY 2023 FY 2024 FY 2025 FY 2025 FY 2025 FY 2025
July to April July to April July to April Full Year Remaining Actual to Budg Actual Actual Actual Budget Balance % Received
Property Tax 8,350,534 9,717,675 9,334,382 16,141,534 6,807,152 58% Sales Tax 25,482,034 25,992,695 27,067,027 39,403,153 12,336,126 69% Franchise Fees 2,152,190 2,795,898 2,459,339 2,974,138 514,799 83% Business License 603,990 617,322 647,701 736,500 88,799 88% Development Fees 1,400,000 1,048,871 932,861 1,247,850 314,989 75% TOT 1,891,088 1,557,707 1,403,260 2,000,000 596,740 70% Fines and Fees 1,392,730 1,346,241 921,351 1,231,136 309,785 75% Other Revenues 4,653,599 7,111,693 7,415,900 7,399,387 (16,513) 100% Transfers-in 1,504,125 1,504,125 2,750 5,500 2,750 50%
Total 47,430,291 51,692,227 50,184,572 71,139,198 20,954,626 71% General Fund Expenditures
July 2024 to April 2025
FY 2023 FY 2024 FY 2025 FY 2025 FY 2025 FY 2025
July to April July to April July to April Full Year Remaining Actual to Budg By Departments: Actual Actual Actual Budget Balance % Used Police 22,021,387 25,964,807 26,237,924 33,864,614 7,626,690 77% Fire 10,124,902 11,447,721 12,282,049 13,985,338 1,703,289 88% Engineering & Public Works 3,047,462 3,812,906 3,692,644 4,518,698 826,054 82% Community Development 2,418,348 2,495,515 2,977,898 4,574,826 1,596,927 65% Community Services 1,347,672 1,566,572 1,917,806 2,679,386 761,580 72% Administration 4,716,272 5,567,574 6,067,549 8,714,772 2,647,222 70% Non-Departmental 7,636,715 3,013,298 3,622,932 5,165,535 1,542,603 70% Capital Improvements 1,627,171 1,199,954 1,113,676 1,000,000 (113,676) 111% Total 52,939,929 55,068,347 57,912,478 74,503,169 16,590,691 78% 3 | May 8, 2025
General Fund Expenditures
July 2024 to April 2025
4 | May 8, 2025
FY 2023 FY 2024 FY 2025 FY 2025 FY 2025 FY 2025
July to April July to April July to April Full Year Remaining Actual to Budg By Type Actual Actual Actual Budget Balance % Used
Wages & Benefits 31,665,532 37,834,338 40,068,533 51,265,557 11,197,024 78% Operating & Maint. 5,540,269 4,265,038 7,310,833 8,942,957 1,632,124 82% Capital Outlay 1,675,180 1,254,981 1,139,953 1,216,000 76,047 94% Internal Svc Charge 6,984,853 9,464,405 7,635,668 10,305,890 2,670,223 74% Transfers-Out 7,074,096 2,249,585 1,757,492 2,772,765 1,015,273 63% Total 52,939,929 55,068,347 57,912,478 74,503,169 16,590,691 78% Net Surplus/Deficit (5,509,638) (3,376,120) (7,727,906) (3,363,971) Budget Highlights
• Status Quo Budget No Additional Staffing or New Services/Programs • $3.0 Million payment for the CalPERS Unfunded Actuarial Liability • $1.0 Million Increase in General Liability Insurance Premiums • $1.0 Million transfer to new CIP Fund
• $100,000 budget allocation for each City Council District • $500,000 Cannabis Revenue
• Current budget reflects COLA increase for POA in September 2024 & the 6% COLA increase to FFA, MEA, Confidential Employees in January 2025 5 | May 8, 2025
Property Tax Revenues
6 | May 8, 2025
-
2.00 4.00
6.00 8.00
10.00 12.00
14.00 16.00
18.00 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Millions
Property Tax Trend Line
6.5% Growth Rate
Sales Tax Revenues
7 | May 8, 2025
-
5.00 10.00
15.00 20.00
25.00 30.00
35.00 40.00
45.00 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Millions
Sales Tax Trend Line
3.9% Growth Rate
General Fund Revenues
Proposed FY 2026 Budget
8 | May 8, 2025
FY 2026 FY 2025 Budget FY 2025 Budget
FY 2023 FY 2024 FY 2025 Proposed to FY 2026 to FY 2026
Actual Actual Budget Budget Budget $ Change Budget % Change Property Tax 14,721,570 15,834,107 16,141,534 17,087,987 946,453 6% Sales Tax 38,450,228 40,095,816 39,403,153 40,611,000 1,207,847 3% Franchise Fees 2,490,692 3,082,215 2,974,138 2,976,000 1,862 0% Business License 656,191 652,987 736,500 750,000 13,500 2% Development Fees 1,693,419 1,304,978 1,247,850 1,279,000 31,150 2% TOT 2,488,614 2,042,380 2,000,000 2,000,000 - 0%
Fines and Fees 1,684,058 1,646,809 1,231,136 1,301,400 70,264 6% Other Revenues 7,331,000 8,632,820 7,399,387 6,853,509 (545,878) -7% Transfers-in 2,005,500 2,005,500 5,500 5,500 0%
Total 71,521,271 75,297,613 71,139,198 72,864,396 1,725,198 2% Other Revenues
• $1.2 Million for Interest Income
• $900,000 for Billboard, Cell Towers & Land Rental Income • $762,978 for Indirect Cost Recovery
• $620,000 for Fire Reimbursable Overtime
• $1.4 Million Port Authority Reimbursement
• $500,000 Cannabis Revenue
• $409,763 School District Contract Reimbursement
• $237,915 Prop 172 Public Safety Sales Tax
• $143,000 Las Palmas Golf Course Rental Income
• $6.9 Million Total Other Revenues
9 | May 8, 2025
General Fund Expenditures
Proposed FY 2026 Budget
10 | May 8, 2025
Administration
City Council City Attorney
City Clerk HR
City Manager Finance
FY 2026 FY 2025 Budget FY 2025 Budget
FY 2023 FY 2024 FY 2025 Proposed to FY 2026 to FY 2026
By Departments: Actual Actual Budget Budget Budget $ Change Budget % Change Police 30,144,781 31,560,096 33,864,614 32,804,034 (1,060,580) -3% Fire 13,606,049 14,097,052 13,985,338 14,737,945 752,607 5% Engineering & Public Works 4,693,168 5,003,729 4,518,698 4,265,636 (253,062) -6% Community Development 3,452,120 3,238,901 4,574,826 4,171,888 (402,937) -9% Community Services 1,724,496 2,170,674 2,679,386 2,762,068 82,682 3% Administration 6,673,998 6,827,243 8,714,772 8,945,407 230,636 3% Non-Departmental 3,480,709 5,353,205 5,165,535 13,379,134 8,213,599 159% Capital Improvements 2,396,265 1,858,497 1,000,000 - (1,000,000) -100% Total 66,171,587 70,109,397 74,503,169 81,066,114 6,562,945 9% Non-Department Expenditures
• $2.5 Million FY 2026 UAL Payment *
• $382,000 for 2017 Bond Payment
• $4.8 Million Transfer for 2021 POB Bond Payment*
• $2.2 Million Transfer to Library Fund
• $1.0 Million Transfer to Park Maintenance Fund
• $503,396 Transfer to Nutrition Fund
• $18,369 Transfer to Mile of Cars LMD
• $400,000 Transfer for Retiree Health Benefits Fund
• $1.0 Million Transfer to Capital Improvement Fund
• $540,000 General operating expenses
• $13.4 Million Total Non-department Expenditures
11 | May 8, 2025
* Previously Part of Labor Costs
General Fund Expenditures
Proposed FY 2026 Budget
12 | May 8, 2025
FY 2026 FY 2025 Budget FY 2025 Budget
FY 2023 FY 2024 FY 2025 Proposed to FY 2026 to FY 2026
By Type Actual Actual Budget Budget Budget $ Change Budget % Change Wages & Benefits 44,550,675 46,302,076 51,265,557 53,633,998 2,368,440 5% Operating & Maint. 7,945,210 9,393,189 9,067,957 9,637,074 569,118 6% Capital Outlay 2,726,671 1,939,246 1,216,000 255,773 (960,227) -79% Internal Svc Charge 8,381,822 9,455,299 10,180,890 7,620,478 (2,560,412) -25% Transfers-Out 2,567,210 3,019,586 2,772,765 9,918,791 7,146,026 258% Total 66,171,587 70,109,397 74,503,169 81,066,114 6,562,945 9% Net Surplus/Deficit 5,349,684 5,188,216 (3,363,971) (8,201,717) Transfers to other Funds
• $4.8 Million Transfer for 2021 POB Bond Payment*
• $2.2 Million Transfer to Library Fund
• $1.0 Million Transfer to Park Maintenance Fund
• $503,396 Transfer to Nutrition Fund
• $18,369 Transfer to Mile of Cars LMD
• $400,000 Transfer for Retiree Health Benefits Fund
• $1.0 Million Transfer to Capital Improvement Fund
• $9.9 Million Total Transfers
13 | May 8, 2025
* Previously Part of Labor Costs
Police & Fire Overtime
14 | May 8, 2025
FY 2026 Budgeted Fire Reimbursable Overtime Expense $500,000 FY 2026 Budgeted Fire Reimbursable Overtime Revenue $620,000 The City Recovers 24% of every Dollar of Actual Overtime Costs to cover Administrative Overhead Costs FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2025 FY 2026 Actual Actual Actual Actual YTD Actual Budget Proposed
Police Overtime 1,208,157 1,176,191 1,426,517 1,583,227 1,372,221 800,000 1,300,000 Fire Overtime 2,907,829 2,034,296 2,220,905 2,162,951 1,393,092 800,000 1,800,000 Fire Reimb Overtime 101,204 198,197 1,100,255 723,490 500,000 Transfers and ISF Charges
15 | May 8, 2025
General
Fund
Transfers
Library
Park
Maint.
Nutrition
Health
Retirement
POB
CIP
General
Fund
ISF Charge
Building
Maint.
Vehicle
Maint.
Vehicle
Replacements
Vehicle
Lease
IT Maint.
General
Liab. Ins
General Liability &
Workers Comp Ins Funds
16 | May 8, 2025
FY 2025 FY 2026 Difference
General Liability Ins Premium 1,643,500 2,662,300 1,018,800 Workers Comp Ins Premium 325,000 377,000 52,000
Claims (W/C & Gen Liab.) 4,140,000 4,248,000 108,000
Labor 85,953 129,793 43,840
Operating Expenses 175,450 170,850 (4,600)
Total 6,369,903 7,587,943 1,218,040
Internal Service Fund Charge
Cost to the General Fund
17 | May 8, 2025
FY 2025 FY 2026 Difference
Building Maintenance Charge 2,978,963 3,033,285 54,322
Vehicle Maintenance Charge 1,124,282 1,113,781 (10,501) Vehicle Replacement Charge 623,870 623,870 -
Vehicle Lease Charge 377,500 377,500 -
IT Maintenance Charge 2,858,504 2,472,042 (386,462)
General Liability Charge 2,217,771 3,400,429 1,182,658
Total 10,180,890 11,020,907 840,017
Transfers to Other Funds
18 | May 8, 2025
FY 2025 FY 2026 Difference
Library 1,452,519 2,150,474 697,955
Park Maintenance 627,238 1,028,759 401,521
Nutrition Fund 219,599 503,396 283,797
Retirement Fund 360,000 400,000 40,000
Mile of Cars LMD 18,369 18,369 -
Subtotal 2,677,725 4,100,998 1,423,273
POB 5,247,982 4,817,793 (430,189)
CIP/Transfer 1,000,000 1,000,000 -
Total 8,925,707 9,918,791 993,084
CalPERS UAL Projections
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Safety 907,678 1,824,693 2,680,000 3,474,000 4,269,000 4,313,000 4,313,000 Misc 549,456 1,205,212 1,719,000 2,192,000 2,665,000 2,691,000 2,691,000 Total UAL 1,457,134 3,029,905 4,399,000 5,666,000 6,934,000 7,004,000 7,004,000 19 | May 8, 2025
-
2 4
6 8
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Millions
City Council Budget FY 2026
20 | May 8, 2025
Mayor District 1 District 2 District 3 District 4 ISF Total Full-Time Wages 174,858 20,416 20,416 20,416 20,416 256,522 Hourly Wages 40,000 60,000 60,000 60,000 60,000 280,000 Overtime 10,000 10,000
Allowances & Stipends 14,306 14,306
Employee Benefits 54,757 17,671 17,671 17,671 17,671 125,440 Governmental Purposes 30,000 28,000 28,000 28,000 28,000 142,000 Training, Travel & Subsistence 10,000 8,000 8,000 8,000 8,000 42,000 Materials & Supplies 5,000 4,000 4,000 4,000 4,000 21,000 Internal Service Charges 183,047 183,047
Total 338,921 138,087 138,087 138,087 138,087 183,047 1,074,315 Current Vacant positions
21 | May 8, 2025
Title Count Annual Total Cost
PROPERTY AGENT 1 52,042
COMMUNITY SERVICES DIRECTOR 1 227,037
HUMAN RESOURCES MANAGER 1 153,949
POLICE DISPATCHER 4 377,436
ASSISTANT ENGINEER-CIVIL 1 72,582
CITY ENGINEER 1 75,468
MANAGEMENT ANALYST III/PIO 1 113,812
SENIOR CRIME & INTELLIGENCE ANALYST 1 135,628
POLICE OFFICER 9 1,371,564
FIREFIGHTER 2 256,402
Grand Total 22 2,835,920
General Fund Unassigned Fund Balance
22 | May 8, 2025
FY 2023 Unassigned Audited Financial Statements $ 23,040,220 Unaudited Preliminary FY 2024 Increase in Unassigned Fund Balance 1,499,671 Projected Ending Unassigned Fund Balance FY 2024 24,539,891 Projected Deficit FY 2025 (3,363,971)
Projected Deficit FY 2026 (8,201,717)
Projected Unassigned Fund Balance FY 2026 $ 12,974,203
General Fund Unassigned Fund Balance
23 | May 8, 2025
(60)
(40)
(20)
-
20 40
60 80
100
120
FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Millions
Unassigned Fund balance Revenues Expense
Reserve Balance as of June 30, 2024
24 | May 8, 2025
Capital Improvement Programs
25 | May 8, 2025
Revenue Opportunities we are Exploring
26 | May 8, 2025
1. Taxes
• Vacant Property Tax
• Sales Tax Adjustment
• Transit Occupancy Tax
2. Fees/ Insourcing
• Parking Districts
• Shared Parking
• Franchise Fees
• Medical Transport
• Recreation Activity Opportunities
• New Senior Center
• Update Service Fees
• Update DIF Fees
3. Economic Development
• Additional Mixed Zoning
• Additional Hotels
• Cannabis Licensing
• Sidewalk Right-of-Way Dining
• Public-Private Partnerships
4. Additional Grant Revenues
5. City Land Sales and Leases
6. Negotiate New MSA with PORT
7. Sponsorship of City Services/Activities
8. Billboard Signage Expansion Program
Cost Saving Measures we are Exploring
• Fleet Evaluation – Purchase vs. Lease
• Technology (PRA)
• Energy Efficiency
• Departmental Optimization & Strategic Reorganization
• Nutrition Center Service Levels
27 | May 8, 2025
Discussion and Questions