ATTACHMENT A
CITY OF PALO ALTO
GENERAL FUND FIRST QUARTER FINANCIAL REPORT
FISCAL YEAR ENDING JUNE 30, 2026
(in thousands)
BUDGET ACTUALS (as of 03/31/2026)
Adopted Adjusted Pre % of Adj
Categories Budget Budget Encumbr Encumbr Actual Budget` Revenues & Other Sources
Sales Tax 36,377 27,377 - - 21,925 80.1%
Property Tax 73,627 72,327 - - 41,741 57.7%
Transient Occupancy Tax 29,139 29,139 - - 18,619 63.9% Documentary Transfer Tax 8,542 8,542 - - 6,599 77.3% Utility Users Tax 21,437 21,437 - - 15,267 71.2%
Business Tax 6,488 6,738 3,540 52.5%
Other Taxes and Fines 780 780 - - 555 71.2%
Charges for Services 44,293 44,499 - - 29,793 67.0% Permits & Licenses 10,671 11,065 - - 8,819 79.7%
Return on Investment 3,742 3,742 - - 2,941 78.6%
Rental Income 16,448 16,448 - - 11,999 73.0%
From Other Agencies 1,830 3,308 - - 2,100 63.5%
Charges To Other Funds 15,547 15,547 - - 11,891 76.5% Other Revenues 785 1,045 - - 782 74.8%
Total Revenues 269,706 261,993 - - 176,573 67.4% Operating Transfers-In 31,459 32,127 - - 24,095 75.0% Encumbrances and Reappropriation 12,203 25,934 - - - 0.0% Total Sources of Funds 313,369 320,053 - - 200,668 68.2% Expenditures & Other Uses
City Attorney 5,094 5,859 36 790 3,825 79.4%
City Auditor 995 1,412 2 813 576 98.5%
City Clerk 1,542 1,618 0 154 1,039 73.7%
City Council 550 596 40 41 374 76.1%
City Manager 5,356 5,693 24 231 4,341 80.8%
Administrative Services 11,831 12,039 5 637 8,613 76.9% Community Services 43,495 44,825 134 4,683 31,800 81.7% Fire 59,966 60,223 318 433 44,959 75.9%
Human Resources 5,655 5,318 48 101 4,173 81.3%
Library 12,925 13,098 129 403 9,871 79.4%
Office of Emergency Services 1,768 1,922 36 326 1,298 86.4% Office of Transporation 3,464 4,831 0 880 2,832 76.8% Planning and Development Services 24,768 29,902 193 4,890 17,527 75.6% Police 58,203 58,966 1 277 44,243 75.5%
Public Works 25,662 29,044 96 5,090 18,751 82.4% Non-Departmental 12,431 14,998 135 552 3,002 24.6% Total Expenditures 273,707 290,348 1,196 20,300 197,222 75.3% Operating Transfers-Out 6,383 6,383 - - 4,787 75.0% Transfer to Infrastructure 33,057 34,028 - - 25,521 75.0% Total Use of Funds 313,147 330,759 1,196 20,300 227,530 75.3% Net Change to BSR 221 (10,705) (26,862)
Budget Amendments in the Fund Authorized by Council thru 3/31/26 FY2026 Budget amendments to reduce GF appropriations
by approximately $6.2m 66
General Fund amendment related to ordinances (96)
CMO Oversized Vehicles Phased Approach (305)
Mid year budget adjustments 157
Approval of Yosh Enterpise Inc. contract and cost sharing with PAUSD. (427)
Approval of contract with Universal Security Company for Fire watch services at City hall (81)
Mid year budget adjustments 110
Mid year budget adjustments (50)
To reduce Property tax to align with Santa Clara County Forecast ( November 2025) (1,300)
To reduce sales tax to align with SantAvenue 2025 Q2
report (9,000)
Total Budget Amendments Authorized by Council (10,926)
Total Budget Amendments Authorized by Council - -
BSR Balance 58,768 53,842
BSR % of Adopted Total Use of Funds 18.8% 17.2%