CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
9/28/2026
1 SUBJECT:
Quarterly Financial Report for the quarter ending June 30, 2026 RECOMMENDED ACTION:
Review and accept the Quarterly Financial Report for the quarter ending June 30, 2026 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.
On June 23, 2025, the City Council adopted the FY 2025-2026 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 June 30, 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 Fourth Quarter Financial Report provides an update on the financial status of the City’s General Fund, outlining revenues and expenditures as of June 30, 2026.
The General Fund financial report is generally prepared on a cash basis, under which revenues are recognized when received and expenditures are recorded when payments are made.
However, the First and Fourth Quarter reports are typically prepared on a modified cash basis to account for the fiscal year-end close.
Pacifica City Council 2
September 28, 2026
The First Quarter report reflects certain revenues and expenditures received or paid during the quarter that pertain to the prior fiscal year and are therefore accrued back to that year. Similarly, the Fourth Quarter report includes revenues earned and expenditures incurred during the fiscal year that may not be received or paid until after year-end. These adjustments ensure that financial activity is reported in the appropriate fiscal year and provide for more accurate budget monitoring and year-over-year comparability.
Summary of the Q4 Financial Report
With the completion of the Fourth Quarter, General Fund Revenues & Transfers In were $56.42 million (105% of budget), and Expenditures & Transfers Out were $51.48 million (93% of budget). Attachment 1 provides additional information on the City’s financial condition as of the end of the Fourth Quarter of the FY 2025-26. Overall, the FY 2025-26 General Fund is currently projecting a favorable year-end variance.
It is important to note, however, that these figures remain preliminary and will continue to change as year-end closing entries are completed. In addition, the favorable variance should not be interpreted as an equivalent amount of ongoing available revenue or structural budget improvement, as the results reflect a combination of one-time revenues, expenditure savings, timing differences, vacancies, and other factors that may not recur in future years.
The City is still completing fiscal year-end close, including final accruals and other audit-related entries, as well as identifying purchase order and other authorized expenditure carryforwards into FY 2026-27. These adjustments may reduce or otherwise change the projected year-end result. Final General Fund results will be reported following completion of the year-end closing and audit process.
ALTERNATIVE ACTION:
There is no reasonable alternative to this informational item, as not accepting the Quarter Financial Reports will not change the City’s financial condition at the end of each quarter.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
Approval of the Fourth 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.
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.
Pacifica City Council 3
September 28, 2026
ORIGINATED BY:
Administrative Services
ATTACHMENT LIST:
Attachment 1 - Q4 FY2025-26 Quarterly Financial Report (PDF)