FY 2026 & FY 2027
Proposed Budgets
Agenda Item 3.A
City Manager and Department Heads
Meeting Date: May 13, 2025
Non-Profit / Outside Agency Funding Requests
Agenda
•Non-Profit / Outside Agency Presentations
•Approving the Budget
•All Funds Budget Overview
•General Fund Budget Overview
•City Goals Overview
•Department Initiatives & Position Reclassifications Overview •Outside Agency Funding
Approving the Budget
Approving the Budget - Timeline
5 3 Apr. 2025
General Fund Reserves - reviewed
Fiscal Policies –affirmed
City Goals –provided direction
Position changes –provided direction
Vehicle replacements –provided direction
Department Initiatives –provided direction
13 May 2025
Today, May 13, 2025
•Final Direction on City Goals, Department Initiatives, Reserves, Positions, Vehicles
•Resolution for Outside Agencies
3 June 2025
Budget Resolution for FY 2026 and FY 2027 Adopted
Budgets
Authorization for Position Changes
10-Year CIP
All Funds Budget Overview
FY 2026 & FY 2027 Proposed Budgets
•Operating Budget – ongoing revenues and expenditures
•City Goals, Department initiatives
•Personnel Costs and position changes
•Fully funds reserves, set-asides to reduce debt and support potential economic downturn
Includes
•Public Safety Facility project
•Outside Agency funding
•Current project budgets
Does NOT include
7 FY 2026 & FY 2027 Proposed Budgets
Includes Transfers between funds
8 Total Budget
FY 2026
Proposed Budget
FY 2027
Proposed Budget
Beginning Fund Balance 31,517,260$ 32,689,951$ Revenues 82,702,796$ 79,284,771$
Expenditures 81,530,105 81,426,361
Net (Revs - Exps)1,172,692$ (2,141,590)$
Ending Fund Balance 32,689,951$ 30,548,361$
Operating Budget
FY 2026
Proposed Budget
FY 2027
Proposed Budget
Revenues 67,151,696$ 68,074,771$
Expenditures 58,654,195 58,851,821
Net (Revs - Exps)8,497,502$ 9,222,950$
One-time
FY 2026
Proposed Budget
FY 2027
Proposed Budget
Revenues 15,551,100$ 11,210,000$
Expenditures 22,875,910 22,574,540
Net (Revs - Exps)(7,324,810)$ (11,364,540)$
FY 2026 & FY 2027 Proposed Budgets
Net of Transfers between funds
9 Total Budget
FY 2026
Proposed Budget
FY 2027
Proposed Budget
Beginning Fund Balance 31,517,260$ 32,689,951$ Revenues 69,738,042$ 62,223,436$
Expenditures 68,565,350 64,365,026
Net (Revs - Exps)1,172,692$ (2,141,590)$
Ending Fund Balance 32,689,951$ 30,548,361$
Operating Budget
FY 2026
Proposed Budget
FY 2027
Proposed Budget
Revenues 61,100,402$ 61,723,436$
Expenditures 52,602,900 52,500,486
Net (Revs - Exps)8,497,502$ 9,222,950$
One-time
FY 2026
Proposed Budget
FY 2027
Proposed Budget
Revenues 8,637,640$ 500,000$
Expenditures 15,962,450 11,864,540
Net (Revs - Exps)(7,324,810)$ (11,364,540)$
General Fund Overview
General Fund Summary
($ thousands)
FY 2025 Year-
End Projected
Actuals
FY 2026
Proposed
Budget
FY 2027
Proposed
Budget
Unassigned Fund Balance 9,619$ 10,674$ 8,587$ Committed Fund Balance 15,020 -
a Beginning Fund Balance 24,639 10,674 8,587 b Operating Revenues 33,893 33,759 34,177 c Operating Expenditures 31,721 34,907 35,044 d = b - c Net Operating Surplus/(Deficit) 2,173 (1,148) (867) e One-time Revenues 883 1,716 1,300 f One-time/Capital Expenditures 6,465 2,140 1,742 g = a+d+e-f Ending Fund Balance 21,229$ 9,101$ 7,278$ Unassigned Fund Balance 8,674$ 6,587$ 5,244$ Committed Fund Balance 10,253 -
Contribution to Reserves 302 515 34 Budget Stabilization Set-Aside 2,000 2,000 2,000 CalPERS Pre-Payment Set-Aside - - -
General Fund Total Budget
12 FY 2026 FY 2027
Revenues $35,474,940 $35,477,379
Expenditures $37,047,446 $36,786,023
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
Revenues Expenditures
General Fund Operating Budget
13 FY 2026 FY 2027
Revenues $33,758,840 $34,177,379
Expenditures $34,906,996 $35,044,483
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
Revenues Expenditures
General Fund One-time Budget
14 FY 2026 FY 2027
Revenues $1,716,100 $1,300,000
Expenditures $2,140,450 $1,741,540
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
Revenues Expenditures
General Fund Reserves
Reserve
FY 2026 Proposed
Amount
FY 2027 Proposed
Amount
General Fund 25% Reserve $8,726,749 $8,761,121
City Building Reserve 500,000 500,000
Risk Management Reserve 250,000 250,000
Budget Stabilization Set-
Aside 2,000,000 2,000,000
CalPERS Pension Set-Aside 0 0
15 City Goals - Proposed Budget
City Goals Funding in Proposed Budget
City Goals FY 2026 FY 2027
Quality of Life $5,709,117 $1,433,487
Streets and Infrastructure 3,976,100 5,832,000
Public Safety 828,290 404,679
Water Resources 220,000 4,095,000
Parking and Circulation 1,348,000 62,000
Development & Housing Access 5,253,900 539,295
Total $ 17,335,407 $ 12,366,461
Council Direction - Changes
•Parking Lot lighting – added Price Street to the Dolliver Street Parking Lot Lighting Project:
•Previously $30,000 in FY 2026 and $300,000 in FY 2027
•Updated to $130,000 in FY 2026 and $300,000 in FY 2027 •Defer FY 2025 project – South Palisades Trail workout stations
Department Initiatives & Position Reclassifications
Department Initiatives FY 2026 FY 2027
Department Initiatives $862,900 $242,995
Position Reclassifications 32,568 33,887
Total $ 895,468 $ 276,882
Non-Profit / Outside Agency Funding Requests