CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
5/26/2026
1 SUBJECT:
Quarterly Financial Report for General Fund for the quarter ending March 31, 2026 RECOMMENDED ACTION:
Review and accept the Quarterly Financial Report for General Fund for the quarter ending March 31, 2026
STAFF CONTACT:
Marisol Gómez, Director of Finance and Administrative Services (650) 501-0257
[email protected] <mailto:[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.
On June 23, 2025, the City Council adopted the FY2025-2026 Budget.
The Quarterly Financial Report summarizes 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 March 31, 2026.
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.
The Third Quarter Financial Report provides an update on the financial status of the City’s Pacifica City Council 2
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General Fund, outlining revenues and expenditures as of March 31, 2026.
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.
The Fourth Quarter report is typically presented on a modified cash basis too, as revenues earned and invoices for services incurred during the fiscal year may be received after year-end and must be accrued back to the appropriate fiscal year.
Third Quarter Financial Report
As of the end of the Third Quarter (March 31, 2026), General Fund Revenues and Transfers In totaled $36.2 million (67% of amended budget), while Expenditures and Transfers Out totaled $35.0 million (63% of amended budget). Revenues and Transfers In exceeded Expenditures and Transfers Out by approximately $1.2 million at the close of the third quarter, reflecting expenditures tracking below revenues through the reporting period.
While this is encouraging, it should be interpreted with caution. The favorable variance may be temporary and could be influenced by timing differences, such as delayed vendor invoices or revenues that have not yet been billed or recorded.
Additional details on the City’s financial performance as of the end of the Third Quarter of the FY 2025-26 are presented in Attachment 1.
Preliminary third-quarter results can serve as an early indicator of full-year fiscal performance; however, they remain subject to change due to timing-related factors. And these figures remain preliminary and subject to refinement through the routine review process, especially fiscal yearend closing for audit purposes.
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:
Approval of the Third Quarter Financial Report is consistent with the following Council adopted Goals:
• Enhance organizational and fiscal stability: Preparation and presentation of the Quarterly Financial Report support sound budget monitoring, fiscal oversight, and adherence to the City’s adopted financial policies and controls by tracking revenues and expenditures against the approved budget.
• Broaden public communications and collaboration: Filing of the Quarterly Financial Report promotes transparency and accountability by providing the City Council and community with the City’s revenue performance, expenditure trends, and overall fiscal position.
Pacifica City Council 3
May 26, 2026
FISCAL IMPACT:
There is no fiscal impact associated with this report, as it is retrospective in nature and reflects prior-period activity; however, the Quarterly Financial Report summarizes revenues and expenditures that directly affect the City’s overall fiscal condition.
ORIGINATED BY:
Finance Department
ATTACHMENT LIST:
Q3 FY 2025-26 Quarterly Financial Report - Attachment 1 (PDF)