EXHIBIT 1
Adjustments to Fiscal Year 2025/2026 General Fund Revenues and Expenditures Revenues Proposed Adjustment Explanation
Property Tax ($35,000) Property tax revenue was originally budgeted to be $9.37 million. Based on
current information provided by the
City’s property tax consultant, HdL, it is
projected to decrease by $35 thousand to
$9.34 million for FY 25/26. This
projected decrease is due to
reassessments of commercial property.
Sales Tax ($338,000) Sales tax revenue was originally
budgeted to be $11.1 million. Based on
current analysis by HdL, sales tax
revenues are projected to decline by $0.3
million to $10.8 million. The decrease is
due to the decline in retail with the
closure of stores around the downtown
and drop in fuel prices affecting service
stations.
Expenditures Proposed Adjustment Explanation
Salaries and Benefits ($83,000) The decrease reflects changes to benefits due to an increase in the unfunded
pension liability payment by $113
thousand due to CalPERS not receiving
the assumed discount rate in FY 22/23;
and Municipal Pooling Authority
decreasing workers compensation
premiums of $196 thousand due to the
City’s improved claim experience.
Risk Management -
Insurance
($130,000) The City is a member of the Municipal
Pooling Authority (MPA), a joint powers
authority that provides self-insurance and
insurance coverage against the risk of losses.
MPA provides coverage from general
liability, employment liability, cyber risk,
vehicle, and property loss. The total
insurance premiums are decreasing from
$1.7 million to $1.6 million for FY 25/26.
The premium decreases are due to the City’s
improved claim experience.