CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
11/10/2025
1 SUBJECT:
Quarterly Financial Report for General Fund for the quarter ending September 30, 2025 RECOMMENDED ACTION:
Review and accept the Quarterly Financial Report for General Fund for the quarter ending September 30, 2025
STAFF CONTACT:
Marisol Gómez, Director of Finance and Administrative Services (650) 501-0257
[email protected]
Lucy Xie, Deputy Finance Director
(650) 501-6014
[email protected]
BACKGROUND/DISCUSSION:
Fiscal sustainability remains one of the City Council strategic priorities, which includes planning for and implementing long-term financial health and stability. A key component of this goal includes preparing a quarterly financial report that would provide readers with an executive summary of the City’s current economic conditions related to the annual operating budget.
In FY 2021-22 staff implemented a new financial reporting practice on a quarterly basis to enhance accountability and transparency in managing public funds. This work is especially meaningful as we continue monitoring the post COVID-19 pandemic recovery of the local economy and the City’s financial health.
On June 23, 2025, the City Council adopted the FY2025-2026 Budget.
The Quarterly Financial Report summarize the City’s General Fund and is not meant to be inclusive of all finance and accounting transactions. This report intends to provide the Council and the public with a broad overview of the City’s operations and fiscal condition. This report provides an update on the financial status of the City’s General Fund by outlining the revenues and expenditures for the quarter ending September 30, 2025.
The General Fund is the City’s primary operating fund and is used to account for day-to-day activities. It receives unrestricted revenues and provides the City’s general administrative services, law enforcement, fire, public works, parks, beaches and recreation, and community development-related activities such as planning, building, and engineering. Revenue sources include but are not limited to Property Tax, Sales Tax, Transient Occupancy Tax (TOT), business registration, and current fees for services such as parking charges, engineering, planning, building permit fees, and recreation services.
Pacifica City Council 2
November 10, 2025
The First Quarter Financial Report provides an update on the financial status of the City’s General Fund, outlining revenues and expenditures as of September 30, 2025.
The General Fund financial report is generally prepared on a cash basis, under which only revenues actually received by the end of each quarter are reflected in the analysis. Likewise, expenditures are recorded when payments are made, in accordance with the cash basis method of accounting. However, the first-quarter report is typically prepared on a modified cash basis, as certain revenues and expenditures pertaining to the prior fiscal year are accrued back to that year to ensure accurate financial reporting, comparability and budget monitoring.
First Quarter Financial Report
As of the end of the First Quarter (September 30, 2025), General Fund Revenues and Transfers In totaled $7.06 million (13% of budget), while Expenditures and Transfers Out totaled $10.41 million (20% of budget). The negative net change in revenues over expenditures during the first quarter is expected, as the City’s major revenue sources are typically received in the second and fourth quarters due to timing. Additional details on the City’s financial performance as of the end of the First Quarter of the FY 2025-26 is presented in Attachment 1.
Overall, staff is pleased to report that the FY2025-26 Budget is on track with revenues and expenditures performing as expected, validating the assumptions made by staff at the budget adoption.
However, it is important to note again that these figures are preliminary. Additional entries will be made as part of the routine review and analysis process, particularly during the mid-year budget review as well as the fiscal year-end closing for audit purposes, which may result in adjustments to these numbers.
ALTERNATIVE ACTION:
There is no reasonable alternative to this informational item, as not accepting the Quarter Financial Report will not change the City’s financial condition at the end of the quarter.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
This item furthers the City’s efforts toward Enhance Organizational and Fiscal Stability.
FISCAL IMPACT:
There is no fiscal impact associated with the Council’s acceptance of this report.
ORIGINATED BY:
Finance Department
ATTACHMENT LIST:
Attachment 1: Q1 FY2025-26 General Fund Quarterly Financial Report (PDF)