National City City Council
June 17, 2025

June 17, 2025
Proposed Citywide Budget
Fiscal Year 2025/2026
Item 11.3
Budget Highlights
• $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 • Increase in Sales Tax $518,000
• Increase in Franchise Fee $321,000
• Increase in Operating Expenses $1.9 Million as directed by City Council June 12, 2025 • $1.0 Million earmarked for Economic Development/City Revitalization Projects • Increased of 12.5 FTE as directed by City Council on June 12, 2025 • Propose Use of $8.3 Million of Unassigned Fund Balance & $1.0 Million of Economic Contingency Reserve
2 | June 17, 2025
Proposed General Fund FY 2026 Budget
3 | June 17, 2025
Property Tax
23%
Sales Tax
56%
Franchise Fees
4%
TOT
3%
Fines and Fees
2%
Other Revenues
12%
Wages &
Benefits
66%
Operating &
Maint.
12%
Capital
Outlay
0%
Internal Svc
Charge
10%
TransfersOut
12% Total Revenue 73,703,497
Total Expenditures (82,973,283)
Proposed Deficit (9,269,786)
Revenues
Expenditures
General Fund Revenues
4 | June 17, 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 Propose Budget Propose Budget Property Tax 14,721,570 15,834,107 16,141,534 17,087,988 946,454 6% Sales Tax 38,450,228 40,095,816 39,403,153 41,129,000 1,725,847 4% Franchise Fees 2,490,692 3,082,215 2,974,138 3,297,000 322,862 11% 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 1,301,500 70,364 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 73,703,497 2,564,299 4% General Fund Expenditures
5 | June 17, 2025
FY 2026 FY 2025 Budget FY 2025 Budget
FY 2023 FY 2024 FY 2025 Proposed to FY 2026 to FY 2026
By Category Actual Actual Budget Budget Propose Budget Propose Budget Wages & Benefits 44,550,675 46,302,076 51,265,557 54,165,443 2,899,886 6% Operating & Maint. 7,945,210 9,393,189 9,067,957 10,445,078 1,377,121 15% 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 8,113,198 (2,067,692) -20% Transfers-Out 2,567,210 3,019,586 2,772,765 9,993,791 7,221,026 260% Total 66,171,587 70,109,397 74,503,169 82,973,283 8,506,883 11% Net Surplus/Deficit 5,349,684 5,188,216 (3,363,971) (9,269,786) Special Revenue Funds
6 | June 17, 2025
Beginning FY 2026 FY 2027 Ending
Fund Balance Revenues Expenditures Fund Balance
Library Fund 456,957 3,286,298 3,324,144 419,111
Park Maintenance 691,240 2,264,885 2,340,461 615,664
Nutrition Fund 105,254 1,559,116 1,536,142 128,228
Sewer Service Fund 26,922,983 12,835,365 12,115,291 27,643,057 HUD Grants 691,502 20,915,547 21,026,550 580,499
Internal Srevice Funds 12,744,760 17,731,833 20,286,810 10,189,783 Other Special Revenue Funds 68,077,209 15,441,163 13,287,813 70,230,559 Total All Special Revenue Funds 109,689,905 74,034,207 73,917,211 109,806,901 Fund Balance
7 | June 17, 2025
*
* The Current Proposed Deficit Excludes future cost of Labor Negotiations Economic Contingency Reserve 7/1/2025 $ 12,800,000
Less City Revitalization Project (1,000,000)
Economic Contingency Reserve 6/30/2026 $ 11,800,000
($2.7 Million below the 20% the General Fund Operating Expensed Policy ) Unassigned Fund Balance
Projected Ending Unassigned Fund Balance FY 2024 $ 24,539,891 Less Projected Deficit FY 2025 (3,363,971)
Less Projected Deficit FY 2026 (8,269,786)
Less 10% Reserve Policy Balance (8,100,000)
Projected Excess in Unassigned Fund Balance 6/30/2026 $ 4,806,134 Staff Recommendation
Staff recommends the adoption of a resolution of the City Council of the City of National City approving the proposed FY 2025/2026 Operating and Capital budget for a total citywide appropriations of $156,890,494 and the use of $1.0 Million of Economic
Contingency Reserve for City Revitalization Projects
8 | June 17, 2025
Discussion and Questions