Table 1. General Fund Amended Budget to Actuals and Budget Amendments
The City has several ongoing funding needs that, in most years, either do not get funded or are only partially funded due to financial constraints; FY 2024/25 was no exception. Staff recommends one-time adjustments, including $2.4 million to the Streets CIP Fund and $62,000 for facility fees collected, be transferred to the Library and Recreation Facilities & Equipment Fund. Staff also recommends adjusting the revenue, expenditure, and transfers as presented below.
Table 2. Proposed General Fund Budget Amendments
General Fund Revenues. Actual General Fund revenues received were greater than the amended budget by approximately $19.8 million, or 12.9 percent greater than the amended budget, primarily due to the $12.8 million capital contribution associated with the Costco project, which was offset by the corresponding expenditure mentioned below. FY 2024/25 total revenue was 14.4 percent higher than the FY 2023/24 total. Table 3 below presents the major revenue categories with a comparison of the amended budget versus actual revenues, as well as the variance to the amended budget.
Table 3. General Fund Revenues – Amended Budget vs. Actual
Property Tax revenue is the largest revenue source for the General Fund, accounting for 53.3 percent of total revenues. In FY 2024/25 actual property tax collections, including all categories of property-related taxes, were approximately $92.6 million compared to an estimate of $93.9 million in the amended budget, which was $1.3 million or 1.4 percent lower than the amended budget. Overall, the real estate market has been cooling in FY 2024/25 due to persistent high mortgage rates. Secured property tax, which is the largest component of the overall Property Tax revenue, was lower than the budget by about $900,000, and the in-lieu vehicle license fee was higher than the budget by about $250,000. In comparison, unsecured property tax and supplemental assessment tax were also lower than budget by $150,000 and $570,000, respectively. Compared to FY 2023/24, $92.6 million collected in FY 2024/25 represents an increase of 2.6 percent, well below the increases the City experienced in the last several years.
Sales Tax revenue is the second-largest revenue source for the General Fund, accounting for
14.6 percent of the total revenues. FY 2024/25 actual sales tax collections were approximately $25.3 million compared to an estimate of $25.0 million in the amended budget. This $350,000 or 1.4 percent increase reflects that several sales tax categories, including state and county pool allocation, general consumer goods, and business and industry, performed better than expected. Compared to FY 2023/24, the $25.3 million collected in FY 2024/25 represents a
5.5 percent increase, primarily due to the opening of the Costco store in November 2024.
Business License Tax revenue was budgeted at $5.8 million, and actual collections were $6.7 million, or $900,000 higher than the amended budget, resulting from new licenses and greater gross receipts than expected, such as the relocation of Kaiser Permanente workers from Oakland to Pleasanton and the opening of a Costco store. Some Business License Taxes collected in FY 2024/25 were related to various one-time construction contracts and other professional services. As such, a more modest level of growth is expected in future years.
Compared to FY 2023/24, the $6.7 million collected in FY 2024/25 represents a 15.6 percent increase.
The actual Transient Occupancy Tax (TOT) collected was approximately $30,000 lower than the budgeted estimate of $5.4 million in the amended budget, mainly due to the closure of a hotel in FY 2024/25. While the $5.3 million collected in FY 2024/25 is an increase from the COVID-19 low of $2.0 million in FY 2020/21, TOT revenue is still significantly lower than the high of $6.5 million achieved in FY 2018/19.
Development Services Fee revenues were approximately $3.4 million higher than the estimated $4.7 million in the amended budget, primarily due to actual building permit and plan check fees collected, which came in about $1.6 million and $1.4 million higher than budget, respectively. There were several large development projects and increased activities in FY2024/25, including the Avalon Bay multifamily residential project, the Workday expansion project, and Accessory Dwelling Units (ADUs), resulting in one-time revenue. Compared to FY 2023/24, the $8.1 million collected in FY 2024/25 represents a 61.4 percent increase due to increased development activities.
Actual Recreation Fee revenues were approximately $73,000 lower than the estimated $5.0 million in the amended budget. Compared to FY 2023/24, the $5.0 million collected in FY 2024/25 represents a 6.2 percent increase, as demand for recreation programs continues to rise every year following the COVID-19 pandemic.
It should be noted that Other Revenues excludes an unrealized investment gain of $3.6 million (not available budgetary resource). Excluding approximately $1.7 million in GASB adjustments related to the City’s leases and subscription-based information technology arrangements (SBITAs) and the aforementioned $12.8 million Costco project capital contribution, actual is higher than budget by about $1.9 million, mainly due to higher reimbursements associated with development projects, interest earnings, interfund revenue for services provided to other funds, and various fees collected related to fire, technology, and encroachment. Excluding the revenue associated with the Costco project, year-over-year revenue increased by $1.1 million, representing a 9.1% increase.
General Fund Expenditures. Actual General Fund expenditures incurred were more than the amended budget by $12.0 million or 7.7 percent, primarily due to the $12.8 million capital contribution associated with the Costco project. Table 4 below shows the major expenditure categories, comparing the amended budget against actual expenditures.
Table 4. General Fund Expenditures – Amended Budget vs. Actual
The $1.1 million savings in Personnel costs, net of adjustments related to GASB 101 implementation, is primarily due to greater-than-anticipated levels of vacancies in several departments, such as Library & Recreation, Public Works, Community Development, and Finance. Certain positions were not filled for the entire year to achieve savings and plan for cost reduction during the 2025-27 budget development, thereby minimizing the impact on employees.
The $40,000 savings in the Transportation and Training category is mostly due to lower travel and training costs incurred, offset by higher fuel and vehicle repair and maintenance costs.
The $450,000 savings in the Repairs and Maintenance category is mainly attributed to lower building maintenance costs due to adjustments to custodial services.
The $370,000 savings in the Materials, Supplies, and Services category is the result of the following over- and under-expenditures: approximately $1.5 million in savings from various contractual services, and approximately $600,000 in savings from various supplies, materials, and other expenditure accounts. These are offset by overspending in other areas, including approximately $1.3 million in phone, computer equipment, and software costs, as well as $400,000 for temporary personnel and recruitment service expenses.
The $14.0 million in overspending in Other Expenditures is mostly due to the aforementioned $12.8 million Costco project capital contribution and $900,000 GASB-related adjustments associated with the City’s leases and SBITAs.
Transfer of Funds. As shown in Table 5 below, actual net General Fund transfers were less than the amended budget by $3.7 million, mainly due to the cancellation of transfers from the Capital Reserve Fund for $3.1 million and the Golf Fund for $500,000 associated with a loan repayment, and greater than anticipated subsidy to the Water and Sewer Funds for their senior and low-income household discounts and greater subsidy to the Transit Fund for its operation. With the cancellation of transfers from the Capital Reserve Fund and the Golf Fund, the $3.5 million contribution to the City’s Capital Improvement Program is covered by revenues generated in FY 2024/25.
Table 5. Transfers In and Transfers Out - Amended Budget vs. Actual
General Fund Reserves. Table 6 below provides the breakdown of the different reserves in the General Fund and recommended adjustments. As detailed in Table 2, transfers totaling $2.4 million to the Streets CIP Fund is recommended. The remaining funds are recommended
to be kept in the General Fund to increase its Unrestricted General Fund Reserve to $31.2 million, which is equivalent to 20.1 percent of the FY 2025/26 Adopted General Fund expenditure budget; 20.0 percent is the recommended target level per the City’s Reserve Policy, adopted by Council on June 6, 2023. Overall, the total General Fund reserves, including program and restricted reserves, will be approximately $53.7 million.
Table 6. General Fund – Fund Balance
Enterprise Funds
The City currently has six Enterprise Funds:
• Water/Recycled Water Operations and Maintenance (O&M) Fund • Sewer O&M Fund
• Callippe Preserve Golf Course Fund
• Storm Drain O&M Fund
• Paratransit Fund
• Cemetery Fund
The Operating Budget only includes the Operations and Maintenance (O&M) and debt service expenses of these enterprises. Capital improvements and replacements for the Water, Sewer, and Storm Drain funds are accounted for in the Capital Improvement Program (CIP). The financial results of the CIP are presented to the City Council in a separate report.
Each Enterprise Fund should generate adequate revenues to fully cover both operating and supplemental costs to maintain and update its facilities and infrastructure. However, both Storm Drain and Cemetery operations do not generate adequate revenues and receive subsidies from the General Fund as a result.
Water and Sewer Operating Funds
Water/Recycled Water O&M Fund. As shown in Table 7 below, the Water Operating Fund ended FY 2024/25 with an operating fund balance of $11.5 million, which equals 29.4 percent of the Water and Recycled Water O&M Fund’s FY 2025/26 expenditure budget. The operating reserve policy adopted by the City Council on June 6, 2023, requires reserves equal to 30.0 -
40.0 percent of operating expenses with a target of 35.0 percent. The current 29.4 percent
reserve level is an improvement on FY 2023/24 reserve level of 20.8 percent, but the reserve level remains below the recommended target. With the recent rate increase approved by the City Council, the reserve is expected to be rebuilt over time.
Water revenues were approximately $1.7 million, or 4.2 percent more than the estimate included in the amended budget. While water revenues increased by $2.0 million, recycled water revenues decreased by $300,000 compared to the budget. On the expenditure side, water purchase costs from Zone 7 were approximately $1.4 million more than budgeted in FY 2024/25. Other operating expenses were also higher by about $140,000 than the budget. As shown in Table 15 below, staff recommends adjusting the expenditure budget to cover the increased costs.
Table 7. Water/Recycled Water O&M Funds – Amended Budget vs. Actual
Sewer O&M Funds. As shown in Table 8 below, the Sewer Operating Fund ended FY 2024/25 with an operating fund balance of approximately $9.3 million, which equals 48.1 percent of the Sewer O&M Fund’s FY 2025/26 expenditure budget. The operating reserve policy adopted by the City Council on June 6, 2023, requires reserves equal to between 30.0 and 40.0 percent of operating expenses, with a target of 35.0 percent. However, the excess reserve is being utilized to fund capital projects in the 2025-27 budget cycle.
Sewer revenues were approximately $370,000, or 2.0 percent lower than the estimate included in the amended budget. On the expenditure side, actual expenditures were approximately $1.1 million less than the amended budget, primarily due to a decrease of about $1.5 million in expenditures for Repair and Replacement activities. These savings were offset with higher sewer treatment fees paid to Dublin San Ramon Service District (DSRSD) by approximately $490,000 due to higher-than-estimated utilization of sewer treatment services.
Table 8. Sewer O&M Funds – Amended Budget vs. Actual
Storm Drain Operating Fund
As shown in Table 9 below, the Storm Drain Operating Fund ended the year with a fund balance of approximately $1.8 million. While this program ended FY 2024/25 with a net income of approximately $370,000, this was possible with the General Fund subsidy of $630,000. FY 2024/25 revenues also reflect approximately $500,000 in Federal Emergency Management Agency (FEMA) grant fund reimbursement for damages that occurred as a result of storms in prior years and $380,000 in interfund reimbursement for services provided to another fund.
The Storm Drain Fund has been operating at a major funding deficit in recent years due to revenues generated from Urban Runoff Fees hovering around $500,000 annually, while operating costs have been increasing. An annual subsidy from the General Fund has been used to cover some of the operating costs.
Table 9. Storm Drain Operating Fund – Amended Budget vs. Actual
Cemetery Fund
As shown in Table 10 below, the Cemetery Fund ended the year with a fund balance of $150,000. This program concluded FY 2024/25 with a net income of approximately $70,000, resulting from higher revenues and lower expenditures.
Burial plot sales and corresponding expenditures related to burials are challenging to predict
from year to year. The General Fund budget includes a transfer of $50,000 to the Cemetery Fund, and this subsidy will likely need to be increased if costs are not kept under control.
Table 10. Cemetery Fund– Amended Budget vs. Actual
Internal Service Funds
Internal Service Funds account for the financing of goods or services provided by one department to another department on a cost-reimbursement basis. Three examples of this are the Retirees Medical Reserve Fund, the Repair and Replacement Funds, and the Self Insurance Fund. These funds not only account for current-year expenditures but also long- term liabilities of the City. These liabilities may not result in actual expenditures in the short term, but will lead to future expenditures for the replacement of equipment or the payment of retiree employee medical benefits in the future. In accordance with the City’s adopted financial policies, the City recognizes costs as they accrue and sets money aside to fund these future expenditures, rather than allowing these costs to accumulate and become a future financial burden.
Retirees Medical Reserve Fund. The FY 2024/25 actual revenues and expenditures reflect the OPEB actuarial study recommendations and actual retiree medical payments.
As shown in Table 11 below, actual revenues were less than $60,000 of the amended budget.
Actual expenses, including transfers, were approximately $590,000 less than budgeted, which is related to unused retiree medical benefits that occur when eligible retirees have their medical benefits provided through another means such as a spouse or another job. The Retirees Medical Reserve Fund does not require a fund balance. Staff will monitor the level of activities in FY 2025/26 and propose to make necessary adjustments to utilize the fund balance of $1.9 million in the 2027-29 budget cycle.
Table 11. Retirees Medical Reserve Funds - Amended Budget vs. Actual
Repair and Replacement Funds. In accordance with the City’s financial policies, the City maintains various Repair and Replacement Funds. The purpose of these funds is to provide ongoing replacement of City equipment, vehicles, traffic signals, streetlights, and to make major repairs/renovations to City facilities, parks, and medians to extend their useful lives.
As described in Table 12 below, collectively, expenditures from the Repair and Replacement funds were $1.9 million less than budgeted in FY 2024/25. Any unspent funds will remain in the Repair and Replacement funds to be expended on future projects, equipment, or vehicle replacements. Actual net transfers ended up with a difference mainly due to an additional $500,000 transfer to the Golf Replacement Fund and a $62,000 transfer from the General Fund to the Library & Recreation Facilities and Equipment Fund. Proposed budget amendments are included in Table 15 below to reflect these transactions.
It is worth noting that many of the City’s Repair and Replacement funds do not have an adequate fund balance to cover necessary project costs and/or replace aging equipment or vehicles in a timely manner. Once the Asset Management Plan has been completed, it will help staff to better estimate an appropriate level of funding needed to support each Repair and Replacement Fund.
Table 12. Repair & Replacement Funds - Amended Budget vs. Actual
Workers’ Compensation Funds. There are two Workers’ Compensation funds: one for the City of Pleasanton workers’ compensation expenses and liabilities, and the other for the Livermore-Pleasanton Fire Department’s (LPFD) workers’ compensation expenses and liabilities. While there is, and has been, sufficient cash in both funds to cover actual workers’ compensation expenses, the incurred but not expensed claims and future liability cause both funds to have negative fund balances. That said, as described in Tables 13 and 14 below, the City’s claims paid is approximately $270,000 lower, and future liability is lower than expected by $740,000. For LPFD, claims paid and future liability are approximately $340,000 and $360,000 higher, respectively. The City’s Workers’ Compensation Fund had a negative fund balance of $1.3 million, and LPFD had a negative fund balance of $4.1 million, with $2.0 million (50 percent) belonging to Pleasanton. To reduce the LPFD Workers’ Compensation Fund deficit, the cities of Pleasanton and Livermore each contributed an additional $322,314 into the fund at the end of June 30, 2025, utilizing the LPFD budget savings, without increasing the Fire Department's overall budget for each agency.
Table 13. City of Pleasanton Workers’ Compensation Fund – Amended Budget vs.
Actual
Table 14. LPFD Workers’ Compensation Fund – FY 2023/24 Actual vs. FY 2024/25 Actual
All Other Operating Funds
For the most part, budget variances are small for the other Operating Funds as shown in Exhibit A of the resolution. However, budget adjustments are needed for certain funds to ensure actual expenditures do not exceed budget due to changes to program activities.
Proposed budget amendments are included in Table 15 below for both the General Fund and other funds.
Summary of Recommended Budget Amendments
Summary of proposed budget adjustments for the General Fund and other funds are presented below. Please note that there is sufficient revenue to cover the expenditures/transfers.
Table 15. Summary of Recommended Budget Amendments
Staff recommends the City Council adopt a resolution (Attachment 1) to accept the FY 2024/25 Year-End Operating Budget report, approve budget amendments as identified, and designate the June 30, 2025, General Fund balance.
EQUITY AND SUSTAINABILITY
Not applicable, as this item is an administrative matter of City business.
OUTREACH
No outreach was conducted, as this item is an administrative matter of City business.
STRATEGIC PLAN ALIGNMENT
Approval of this action advances the ONE Pleasanton strategic goal of Funding Our Future, which is focused on fiscal sustainability. Examining and reviewing actual revenues and expenditures from FY 2024/25 provides staff and the City Council with additional information to adjust the current fiscal year's budget, as needed, as well as refine the long-term financial forecast for more informed fiscal planning.
FISCAL IMPACT
The recommendation ratifies the City Council’s actions since the last approved budget adjustment in FY 2024/25; transfers $2.4 million from the General Fund to the Streets CIP Fund and amends other revenue, expenditure, and budget items for various funds as shown in Table 15; and designates the June 30, 2025, General Fund Balances as outlined in this report.
The proposed unrestricted General Fund reserves will be $31.2 million, which is 20.1 percent of the budgeted FY 2025/26 General Fund operating expenditures, meeting the target reserve level stated in the City’s Reserve Policy. When combined with restricted and other committed General Fund reserves, the total General Fund reserves will be $53.7million.
Prepared by: Submitted by: Approved by:
Susan Hsieh, Director of
Finance
Susan Hsieh, Director of Finance
Gerry Beaudin, City
Manager
Attachments:
1. Resolution and Exhibit A (Estimated Changes in Fund Balances)
2. FY25 Year-End Operating Report Presentation
Attachment 1
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON ACCEPTING THE FY 2024/25 YEAR-END OPERATING BUDGET REPORT,
APPROVING BUDGET AMENDMENTS IN MULTIPLE FUNDS, AND DESIGNATING
THE GENERAL FUND BALANCE
WHEREAS, each year a report of the financial condition of the Operating Budget is presented to Council, and
WHEREAS, staff presented to Council such a report for the fiscal year ending June 30, 2025.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE, AND ORDER THE FOLLOWING:
Section 1: A ccepts the June 30, 2025 Fund Balances as shown in Exhibit A.
Section 2: Designates General Fund Reserves for existing and future unknown obligations as shown in the Attachment for all funds and as follows for the General Fund and other funds.
Section 3: Allocates a transfer of $2,400,000 from the General Fund to the Streets CIP Fund and adjusts the budgets for the General Fund and other funds as presented in the table below. It also adjusts the contribution to the Livermore-Pleasanton Fire Department (LPFD) Workers’ Compensation Fund for $322,314, utilizing the LPFD year-end budget savings.
FY 2024/25
Recom m ended
Budget
Am endm ents
Actual Am ended
Budget
Recom m ended
Budget
Am endm ents
Final Budget
Rationale
Revenue
General Fund $ 173,662,371 $ 153,876,040 $ 12,758,240 $ 166,634,280 Costco project capital contribution Expenses
General Fund $(166,430,404) $(154,475,775) $ (12,758,240) $(167,234,015) Costco project capital outlay Lower Income
Housing $ (1,105,455) $ (715,124) $ (395,300) $ (1,110,424) BMR home purchase and escrow fee
H.O.M.E.
Program
$ (415,168)
$ (143,156)
$ (273,000)
$ (416,156)
Return of funds to Alameda County Housing
&
Community Development for repayment of
loan funds
Abandoned
Vehicle $ (34,114) $ (30,000) $ (4,200) $ (34,200) Increase in interfund expenditure H.B.P.O.A.
Maintenance
District
$ (228,843)
$ (150,000)
$ (78,900)
$ (228,900)
Higher maintenance costs
Water Operations
and Maintenance
$ (34,847,423)
$ (33,394,279)
$ (1,454,000)
$ (34,848,279) Increase in Zone 7 water purchase offset by higher revenues
Recycled Water
Operations and
Maint
$ (2,407,352)
$ (2,031,926)
$ (376,000)
$ (2,407,926)
Contribution to DERWA for capital projects
Transfers In
General Fund
$ 1,367,145
$ 4,853,145
$ (3,580,000)
$ 1,273,145
Transfers of $3.08 million from the Capital
Reserve Fund is not needed and $0.50
million from the Golf O&M Fund is not
available.
Lower Income
Housing
$ 3,468,634
$ -
$ 3,468,634
$ 3,468,634
Merge and transfer from the Housing Loan
Fund 121 to the Lower Income Housing Fund
122
H.O.M.E.
Program
$ 260,000
$ -
$ 260,000
$ 260,000
Transfer from the Lower Income
Housing Fund 122 to reflect loan
repayment in the fund that originated
the funding
Streets CIP Fund
$ 1,193,760
$ 1,193,760
$ 2,400,000
$ 3,593,760
Transfer from the General Fund to build
up the reserve for streets-related repairs
and replacement projects
Park CIP Fund
$ 1,330,022
$ 1,300,000
$ 30,022
$ 1,330,022 Transfer from the Bernal Donations Fund for the Bernal Park Advance Repayment
Equipment
Replacement
$ 205,849
$ -
$ 205,849
$ 205,849 Transfer from Recycled Water Fund - correct
the fund receiving the loan payment
Facilities
Renovation
$ -
$ 195,904
$ (195,904)
$ - Correct the fund receiving the loan payment,
which is the Equipment Replacement Fund
Golf Replacement $ 720,000 $ 220,000 $ 500,000 $ 720,000 Transfer to the General Fund is cancelled to retain funds for renovation
L & R Facilities &
Equip Fund $ 61,502 $ - $ 61,502 $ 61,502 Transfer from the General Fund to set aside facility fees
Transfers Out
General Fund
$ (4,800,548)
$ (4,556,578)
$ (2,461,502)
$ (7,018,080)
Transfer of $2.4 million to the Streets CIP
Fund to build up the reserve for streets-
related repairs and replacement projects
and
$0.06 million to L& R Facilities & Equip Fund
to set aside facility fees
Capital Reserve
Fund $ - $ (3,080,000) $ 3,080,000 $ - Transfer to the General Fund is not needed Bernal Donations $ (30,022) $ - $ (30,022) $ (30,022) Transfer to the Park CIP Fund for the Bernal Park Advance Repayment
Housing Loan
$ (3,468,634)
$ -
$ (3,468,634)
$ (3,468,634)
Merge and transfer from the Housing Loan
Fund 121 to the Lower Income Housing
Fund 122
Lower Income
Housing
$ (260,000)
$ -
$ (260,000)
$ (260,000)
Transfer to the H.O.M.E Program Fund to
reflect loan repayment in the fund that
originated the funding
Golf Operating &
Maintenance* $ (751,780) $ (751,780) $ (751,780) * Recom m ended
Budget
Am endm ents
$(31,758,679) $(36,937,989) $(2,571,455) $(39,509,444)
*Amended budget will transfer $720k to the Golf Replacement Fund instead of $220k as previously budgeted, and $31,780 will be transferred to the General Fund for Loan Repayment instead of $531,780 as previously budgeted.
Section 4: The City Clerk shall certify to the passage of this resolution and enter it into the book of original resolutions.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Pleasanton at a regular meeting held on the 18th day of November 2025.
I, Jocelyn Kwong, City Clerk of the City of Pleasanton, California, certify that the foregoing resolution was adopted by the City Council at a regular meeting on November 18, 2025, by the following vote:
Ayes:
Noes:
Absent:
Abstain:
Jocelyn Kwong, City Clerk
APPROVED AS TO FO RM :
Daniel G. Sodergren, City Attorney
Exhibit A
FY 2024/25 OPERATING BUDGET YEAR-END REVIEW
CHANGES IN FUND BALANCES
1 D.A.R.E. $ 17,219 $ 371 - - -
Asset Forfeiture 18,583 3,015 - - -
Asset Forfeiture - Federal 9,783 210 - - -
Downtown Parking In-Lieu 690,243 14,834 - - -
$ 371 $ 17,590
3,015 21,598
210 9,993
14,834 705,077
- $ 17,590
- 21,598
- 9,993
- 705,077
GENERAL FUND
CAPITAL RESERVE FUND
ENTERPRISE FUNDS
Transit
Cemetery
Golf
Storm Drain
Water
Recycled Water
Sewer
587,010 87,481 (635,550) -
337,679 50,000 (316,803) -
6,519,988 (751,780) (5,119,523) -
1,459,055 625,000 (1,717,972) -
39,935,301 (891,802) (35,426,561) -
2,670,911 59,257 (2,407,352) -
17,717,593 125,455 (17,161,521) -
INTERNAL SERVICE FUNDS
Enterprise Funds $ 20,700,201 $ 69,227,535 $ (696,389) $ (62,785,282) $ - Employee Benefits $ 1,070,180 - (1,046,915) -
Workers' Compensation
Public Art Acquisition
Vehicle Replacement
Police Vehicle Replacement
Fire Apparatus Replacement
Equipment Replacement
Facilities Renovation
Information Technology Replacement
Golf Replacement
Park & Median Renovation
Street Light Replacement
Traffic Signal Replacement
Library and Recreation Facilities & Equipment Fund
PARS Section 115 Trust
Pleasanton Retirees' Medical Reserve
Self-Insurance Retention
City Enhancement
3,414,774 - (1,409,277) -
116,040 - (2,133) -
632,283 - (1,405,757) -
414,712 - (713,125) -
453,081 - (975,877) -
586,448 205,849 (381,093) -
593,650 - (327,882) -
405,360 - (136,299) -
34,204 720,000 (433,259) -
330,558 - (108,685) -
48,864 - (163,864) -
236,888 - (274,413) -
70,290 61,502 (3,613) -
- - - -
5,288,911 (1,028,000) (3,669,679) -
5,201,482 - (4,686,524)
9,869 - (100,358) -
Internal Service Funds $ 59,916,371 $ 18,907,594 $ (40,648) $ (15,838,754) -
SPECIAL REVENUE FUNDS
-
$ 500,000
-
-
-
-
-
$ 500,000 $ 25,946,065
$ 620,079
(353,082)
3,115,903
1,793,138
14,281,861
(2,812,762)
9,300,929
(6,006,911)
(9,405,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1,005,606)
-
$ (16,417,517) $ 79,362,080
$ 6,088,402
8,103,195
506,378
3,549,942
1,829,374
2,729,091
2,795,402
4,032,654
2,418,905
1,042,701
1,204,039
2,208,814
1,366,634
128,179
35,465,973
1,873,131
3,576,598
442,669
$ 62,944,563$ 3,028,192
$ 81,491
(1,301,805)
506,378
3,549,942
1,829,374
2,729,091
2,795,402
4,032,654
2,418,905
1,042,701
1,204,039
2,208,814
1,366,634
128,179
35,465,973
1,873,131
2,570,992
442,669
$ 23,266
2,005,497
113,907
(773,474)
(298,414)
(522,797)
411,204
265,768
269,062
320,945
221,873
(115,000)
(37,525)
128,179
-
591,232
514,958
(90,489)
$ 26,446,065$ 5,745,865
$ 620,079
146,918
3,115,903
1,793,138
14,281,861
(2,812,762)
9,300,929
$ 38,941
70,876
648,685
366,082
3,616,938
322,816
681,527
$ 58,226
(3,307,302)
392,472
4,323,416
2,127,787
3,251,887
2,384,198
3,766,886
2,149,843
721,755
982,166
2,323,814
1,404,159
-
35,465,973
1,281,899
2,056,035
533,159
$ 581,138
76,042
2,467,218
1,427,056
10,664,923
(3,135,578)
8,619,402
Actual
June 30, 2024
Balance
Actual
FY 2024/25
Revenue
Actual
FY 2024/25
Net Transfers
Actual
FY 2024/25
Expenditures
Recommended
Budget
Amendments
Actual
FY 2024/25
Net Income
w/ Budget
Amendments
Actual
June 30, 2025
Balance
w/ Budget
Amendments
$ 52,309,912 $ 173,662,371 $ (3,433,403) $ (166,430,404) $ (2,400,000) $ 1,398,565 $ 53,708,477 6,620,550 - - - - - 6,620,550
Major Long
Term
Commitments
& Liabilities
June 30, 2025
YR END
June 30, 2025
Balance Less
Commitments
& Liabilities
$ 1,168,578 $ 52,539,899
- 6,620,550
Exhibit A
FY 2024/25 OPERATING BUDGET YEAR-END REVIEW
CHANGES IN FUND BALANCES
2 Recycling & Waste Management
Miscellaneous Donations
Bernal Donations
H.A.P.P.Y. Public Art Donations
CASB FEE
Recycling & Waste Management Import Mitigation
Operating Grants
Law Enforcement
Used Oil Grant
Community Access T V
Downtown Economic Development Loan
Lower Income Housing
Community Development Block Grant
H.O.M.E. Program
Abandoned Vehicle
H.B.P.O.A. Maintenance District
Urban Forestry
Lemoine Geologic Hazard Distrct
Laurel Creek Geologic Hazard District
Moller Geologic Hazard Dist
Oak Tree Farm Geologic Hazard Dist
Ponderosa Landscape District
Windsor Landscape District
Bonde Landscape District
Moller Ranch Landscape District
Oak Tree Farm Landscape Dist
North Pleasanton Improvements District
Business Support
PFAS Setttlements
Pleasanton Garbage Service Reserve
Opioid Distributors Settlement
Opioid Mallinckrodt Bankruptcy
National Opioid Abatement Trust
Opioid Wilmington Trust
Opioid Walmart
Opioid CVS
Opioid Allergan
Opioid Teva
Opioid Endo Pharmaceuticals
Actual
June 30, 2024
Balance
Actual
FY 2024/25
Revenue
Actual
FY 2024/25
Net Transfers
Actual
FY 2024/25
Expenditures
Recommended
Budget
Amendments
Actual
FY 2024/25
Net Income
w/ Budget
Amendments
Actual
June 30, 2025
Balance
w/ Budget
Amendments
294,357 282,223 - (491,633) - (209,411) 84,947
381,435 7,700 - (4,970) - 2,730 384,165
1,421 60,505 (30,022) - - 30,483 31,905
115,908 22,528 - - - 22,528 138,436
131,277 33,285 - (2,928) - 30,357 161,634
108,721 2,404 - 0 - 2,404 111,125
704,693 591,053 - (847,909) - (256,856) 447,837
1,073,805 479,344 - (1,318,670) - (839,325) 234,480
- 10,284 - (10,284) - - (0)
1,470,634 231,755 - (48,399) - 183,356 1,653,991
28,247 607 - - - 607 28,854
13,650,259 2,187,511 3,208,634 (1,105,455) - 4,290,690 17,940,948 522,385 345,470 - (342,042) - 3,428 525,813
752,894 391,589 260,000 (415,168) - 236,420 989,315
114,402 37,077 - (34,114) - 2,963 117,364
- 228,843 - (228,843) - - -
1,079,159 637,107 (25,000) (99,350) - 512,757 1,591,916 94,331 11,187 - (47,235) - (36,048) 58,283
1,032,810 73,436 - (183,200) - (109,764) 923,046
115,329 15,648 - (46,794) - (31,146) 84,183
111,769 17,163 - (22,747) - (5,585) 106,184
83,954 17,165 - (17,136) - 30 83,984
(9,418) 23,904 - (21,231) - 2,674 (6,744)
19,425 26,765 - (21,931) - 4,834 24,259
264,571 63,847 - (78,712) - (14,865) 249,705
66,117 21,114 - (21,765) - (651) 65,466
1,062,144 23,098 - (9,230) - 13,868 1,076,011
2,381,101 39,578 (350,000) - - (310,422) 2,070,679
- 581,564 - - - 581,564 581,564
4,017,457 2,130,249 (1,193,760) (420,291) - 516,198 4,533,656 90,713 62,930 - - - 62,930 153,644
6,110 7,410 - - - 7,410 13,520
7,191 36,545 - - - 36,545 43,736
18,494 18,576 - - - 18,576 37,070
- 118,529 - - - 118,529 118,529
- 28,713 - - - 28,713 28,713
- 27,698 - - - 27,698 27,698
- 25,192 - - - 25,192 25,192
- 12,702 - - - 12,702 12,702
Major Long
Term
Commitments
& Liabilities
June 30, 2025
YR END
June 30, 2025
Balance Less
Commitments
& Liabilities
- 84,947
- 384,165
- 31,905
- 138,436
- 161,634
- 111,125
447,837 -
- 234,480
(0) -
- 1,653,991
- 28,854
- 17,940,948
525,813 -
989,315 -
- 117,364
- -
- 1,591,916
- 58,283
- 923,046
- 84,183
- 106,184
- 83,984
- (6,744)
- 24,259
- 249,705
- 65,466
- 1,076,011
322,617 1,748,063
- 581,564
- 4,533,656
- 153,644
- 13,520
- 43,736
- 37,070
- 118,529
- 28,713
- 27,698
- 25,192
- 12,702
Exhibit A
FY 2024/25 OPERATING BUDGET YEAR-END REVIEW
CHANGES IN FUND BALANCES
3 Opioid McKinsey Subdivision
Special Revenue Funds
OTHER FUNDS
Pleasanton Township County Water District #3
Trust Fund
Other Funds
TOTAL - ALL FUNDS
$ 170,391,094 $
270,766,022 $
(2,300,588) $
(250,916,571) $
(2,400,000) $ 15,148,865 $ 185,539,958
-
-
$ (12,463,358) $ 198,003,316
302,073$
302,073$
Actual
June 30, 2024
Balance
Actual
FY 2024/25
Revenue
Actual
FY 2024/25
Net Transfers
Actual
FY 2024/25
Expenditures
Recommended
Budget
Amendments
Actual
FY 2024/25
Net Income
w/ Budget
Amendments
Actual
June 30, 2025
Balance
w/ Budget
Amendments
- 10,165 - - - 10,165 10,165
$ 30,527,523 $ 8,960,892 $ 1,869,852 $ (5,840,037) - $ 4,990,708 $ 35,518,231 Major Long
Term
Commitments
& Liabilities
June 30, 2025
YR END
June 30, 2025
Balance Less
Commitments
& Liabilities
- 10,165
$ 2,285,581 $ 33,232,650
$ 316,538 $ 7,630 - $ (22,095) - $ (14,465) $ 302,073
$ 316,538 $ 7,630 - $ (22,095) - $ (14,465) $ 302,073
11/8/2025
1 FY 2024/25 Year-End ReportOperating BudgetNovember 18, 2025 Council Meeting Agenda
Overview
Financial Highlights
Next Steps2
1 2
11/8/2025
2 City Fiscal Policies and Practices•Utilize conservative budgeting practices to prevent unexpected financial shortfalls•Use available resources to:Strengthen reservesFund capital projects/repair and replacement projectsPay down unfunded pension and retiree medical liabilitiesFund one-time projects to advance Council and community strategic goals•Build financial resilience for long-term sustainability3 Overview of Fiscal Year 2025 Unaudited Financial Results•General Fund•Property tax is lower than budgeted, offset by increases in sales tax and business license tax•Development activities are higher than expected, resulting in one-time revenue•Revenues, expenditures, and long-term loans payable associated with the Costco project are recognized•Implementation of Governmental Accounting Standards Board (GASB) 101, pertaining to compensated absences, increased staffing costs •There is sufficient revenue to cover the contribution to the Capital Improvement Program4 3 4
11/8/2025
3 Overview of Fiscal Year 2025 Unaudited Financial Results (cont.)•Enterprise Funds•Water Fund reserve level improved as a result of the rate increase approved by the Council in 2023•Sewer Fund reserve meets the reserve target•Storm Drain and Cemetery Funds continue to receive subsidies from the General Fund•Funding gaps in program areas that need General Fund support•Stormwater System•Repair and Replacement•Workers’ Compensation5 General Fund Revenues – Highlights•Property Tax: Lower revenue due to a cooler real estate market; only 2.6% year-over-year growth•Business License Tax:Increased revenue due to new licenses and greater gross receipts•Development Revenue: One-time revenue due to large development projects•Other Revenues:Recognized $12.8M in Costco capital contribution, offset by expenditures; also recorded long-term liability6 5 6
11/8/2025
4 General Fund Expenditures – Highlights•Personnel:Staffing savings reduced by GASB 101 implementation•Other Expenditures:Recognized $12.8M in Costco capital outlay•Other Savings: Total approximately $0.8M7 Proposed General Fund Budget Amendments•There is sufficient revenue to cover capital contributions•$2.4M to the Streets CIP Fund to build up the reserve for capital projects8 7 8
11/8/2025
5 General Fund Reserves•Policy: •Reserve target: 20.0%•Reserve range: 16.7% to 25.0%•Reserve level: $31.2M or 20.1% of FY 2025/26 operating expenditures9 Enterprise Funds•Water Operating Fund net income: $3.9M•Reserve: $11.5M•The 2023 approved rate increase improved financial results and improved reserve level from 21% in FY 2023/24 to 29%, although reserve remains below the 35% reserve target•Sewer Operating Fund net income: $0.7M•Reserve: $9.3M•Above 35% reserve target•Excess reserve is being utilized to fund capital projects in the 2025-27 budget cycle10 9 10
11/8/2025
6 Enterprise Funds (cont.)•Storm Drain Fund net income: $0.4M•Reserve: $1.8M•General Fund subsidy contributed to the positive financial results; 100% reliance on the General Fund for capital projects•Cemetery Fund net income: $0.07M•Reserve: $0.1M•General Fund subsidy mainly contributed to the positive financial results11 Internal Service Funds•Repair & Replacement Funds•Insufficient funds to repair/replace aging equipment, vehicles, and infrastructure•The Asset Management Plan will help better inform our overall funding need•Fund balance slightly reduced by $0.1M to $24.2M (consolidation of over ten funds)•Workers’ Compensation Funds:•City: $1.3M in deficit fund balance•LPFD (Pleasanton’s share): $2.0M in deficit fund balance12 11 12
11/8/2025
7 Key Proposed Budget Amendments – Other Funds•Adjustments are mainly due to changes to program activities13Recommended Budget AmendmentsAmended BudgetRecommended Budget Amendments Final Budget RationaleExpenses Lower Income Housing $ (715,124) $ (395,300) $ (1,110,424) BMR home purchase and escrow fee H.O.M.E. Program $ (143,156) $ (273,000) $ (416,156)Return of funds to Alameda County Housing & Community Development for repayment of loan funds Water Operations and Maintenance $ (33,394,279) $ (1,454,000) $ (34,848,279)Increase in Zone 7 water purchase offset by higher revenues Recycled Water Operations and Maint $ (2,031,926) $ (376,000) $ (2,407,926) Contribution to DERWA for capital projectsTransfers Lower Income Housing $ - $ 3,468,634 $ 3,468,634 Merge and transfer from the Housing Loan Fund 121 to the Lower Income Housing Fund 122 H.O.M.E. Program $ - $ 260,000 $ 260,000 Transfer from the Lower Income Housing Fund 122 to reflect loan repayment in the fund that originated the funding Next Steps14Annual Comprehensive Financial Report Presentation January 2026Mid-Year Budget Review and Financial Forecast UpdateFebruary 2026Organizational AssessmentNovember 2025 to June 202613 14
11/8/2025
8 Recommendation•Staff recommends that the Council accept the FY 2024/25 year-end operating budget report, approve budget amendments in multiple funds, and designate the General Fund balance1515
Item #12.b
CITY COUNCIL AGENDA REPORT
November 18, 2025
Finance
TITLE: ADOPT A RESOLUTION TO ACCEPT THE FY 2024/25 YEAR-END FINANCIAL
AND PROGRAM DELIVERY REPORT FOR THE CAPITAL IMPROVEMENT
PROGRAM (CIP)
SUMMARY
This year-end report presents the unaudited results of the Fiscal Year 2024/25 Capital Improvement Program (CIP). The audited information will be reflected in the City's Annual Comprehensive Financial Report (ACFR) which will be presented to the City Council in December 2025 or January 2026, after the City's independent auditor has issued its opinion on the ACFR and the Audit Committee has reviewed it.
During Fiscal Year (FY) 2024/25, the City completed the design for 26 CIP projects, had 13 projects under construction, and completed construction on six projects, with total expenditures of $33.7 million, ensuring continued progress toward critical infrastructure goals. This report also shares an overview of CIP program delivery, including a summary of actual CIP expenditures, budget amendments, and recommended project carryforwards from FY 2024/25 to FY 2025/26.
RECOMMENDATION
Adopt a resolution to accept the Fiscal Year 2024/25 year-end financial and program delivery report for the Capital Improvement Program (CIP) and approve the carryforwards as included in the report.
BACKGROUND
Annually, staff presents the year-end financial report for the Capital Improvement Program (CIP) to the City Council for approval. This year, the report has been expanded to provide more information, specifically related to program delivery accomplishments.
The report summarizes the actual results of the financial activities and program delivery updates for the CIP Budget and recognizes budget carryforwards to the following year. The City's Annual Comprehensive Financial Report (ACFR) is still in progress; therefore, the financial information included in this report is unaudited. The audited information will be reflected in the ACFR and will be presented to the City Council once the City's independent auditor has issued its opinion on the ACFR and the Audit Committee has reviewed it; this is expected to occur in December 2025 or January 2026. If there are any differences in the financial information presented in this report and the ACFR as a result of the audit, those changes will be highlighted at that time.
On December 17, 2024, City Council adopted a CIP Program Process and Prioritization (CIPPP) Strategy and developed a list of Annual Core Capital Improvement Program projects.
The CIPPP created a systematic approach to rank projects, help allocate resources effectively,
and make data-driven decisions on capital investments. As part of the development of the FY 2025/26- FY2029/30 CIP budget adopted by Council in June 2025, existing projects that require supplemental funding, had not advanced, or did not have a defined scope, were recommended to be canceled and resubmitted for review under the CIPPP. Canceled projects are defunded as part of the carryforward process to ensure all project costs are accounted for.
DISCUSSION
This report presents the status of the CIP Budget as of June 30, 2025. It provides a summary of the actual expenditures, the amended budget, which is the original budget plus any amendments approved by the City Council through June 30, 2025, and the recommended carryforwards from FY 2024/25 to FY 2025/26. It should be noted that projects can have more than one funding source, and expenditures can be cyclical or multiyear in nature, which is reflected in the carryforwards.
During the development of the FY 2025/26 CIP Budget, staff performed a more comprehensive analysis of each capital fund’s condition, in terms of budgeted versus actual revenues collected, to reassess and recommend changes to the budget for projects, as needed, by adjusting carryforward amounts to ensure there is an adequate fund balance in each fund. In addition, existing projects were reviewed under the CIPPP process and the resulting recommendations for projects to be canceled were implemented as part of the FY2025/26-FY2029/30 CIP Budget.
Carryforward Recommendations
This report includes the final carryforward recommendations for the City Council’s approval, based on the FY 2024/25 actual expenditures for each project, as well as estimated balances for each fund. Table 1 summarizes the actual expenditures to the amended budget for the fiscal year and identifies the carryforward by CIP project category. The summary excludes $18.0 million in reserve projects that were included as part of the FY2026 adopted budget; no carryforward is needed for these projects. Reductions or funds returned to the fund balance will be reprogrammed for other capital projects.
Table 1 – Summary of CIP Carryforwards by Project Category
There are two main funding types: Restricted and Non-Restricted Funds.
• Restricted Funds: Approximately $52.6 million of the $63.8 million recommended carryforwards to FY 2025/26 belong in this category. Their use is governed by federal and state laws, grants, and local measures. Common sources include Park Development Impact
fees, Facility Development Impact fees, enterprise funds (e.g., water, sewer, and golf course), and transportation funds (e.g., Measure BB and Vehicle Registration Fee). Because these funds are often limited to specific purposes only, projects may receive only partial funding initially and may need to be supplemented with additional grants or even non-restricted funds.
As such, most of these project budgets are carried forward until fully funded.
• Non-Restricted Funds: The remaining $11.2 million recommended carryforwards to FY 2025/26 belong in the non-restricted category. These funds are more flexible and general- purpose in nature, and, as a result, can be used to fund all types of capital projects, although they are primarily used to support critical infrastructure and safety projects that cannot be funded with restricted funding sources. Primarily sourced from the General Fund, many streets, parks, and storm drain replacements are funded using this source. It should be noted that the Storm Drain Capital Fund, similar to its Operating Fund, is currently heavily subsidized by the General Fund, and this approach is not sustainable. Staff is evaluating this issue and will present options to the City Council at a later date.
In FY 2024/25, there were projects that exceeded their budgets, and, accordingly, staff recommends that the City Council approve the following budget adjustments for FY 2024/25. • Fund 162, Project 24174, City Groundwater Supply Project, increase budget in the amount of $1,000,000 for grant revenue and $1,000,000 for corresponding grant expenditures for a state-approved grant, as outlined in the February 6, 2024 City Council agenda, Item 7.
• Fund 203, Project 23493, Library Lighting, increase the budget amount to $57,989, to match actual expenses. This project was funded with Fund 201 and Fund 203. The project budget in Fund 203 was inadvertently returned to fund balance at FY 2024/25 carryforward.
• Fund 421, Project 23158, Water Supply Alternatives, increase the budget amount to $2,684, to match actual expenses. Expenses were incurred in FY 2024/25 to cover associated legal fees that were not known at the time of project closeout, when funds were returned to fund balance.
• Fund 421, Project 24172, Bernal Improvements, increase the budget amount to $13,713, to match actual expenses. This increase in expenses reflects Zone 7 reimbursement of expenses for work performed by the City on behalf of Zone 7 for urgent repairs at Turnout #1. Revenue in FY 2024/25 was received from Zone 7 that covered the cost of this work.
Reserve Funds
The City maintains several reserves within its CIP funds, which are specifically allocated for designated purposes. These reserves act as holding accounts for upcoming projects that need additional funding or serve as emergency funds. Details of these reserves at the project category level are summarized in Table 2 below. Of the $63.8 million total recommended carryforwards, $60.2 million supports active projects, $2.9 million is reserved or on hold, and $0.7 million is for projects that have a budget but have not yet started. There are many reasons for project delays, and these include lack of adequate funding, cost increases, project coordination with private developer projects, or priority shifts. Many reserves are earmarked for emergency needs, upcoming developments, and future projects, ensuring flexibility and long-term planning. Table 2 below summarizes the CIP Reserves by project category.
Approximately $18.0 million in Reserve projects were previously included as part of the FY 2025/26 budget adopted by the City Council; no carryforward is needed for these projects.
Table 2 – Summary of CIP Reserve by Project Category
FY 2024/25 Project Delivery Summary: Challenges and Adjustments The project delivery team faced significant challenges in FY 2024/25 that impacted the schedule and capacity for additional projects:
1. Staffing Shortages
The CIP project delivery team, composed of four Public Works engineers and five inspectors, along with one staff member in Community and Economic Development, experienced a 30 percent vacancy rate (one engineer and two inspectors). Staff augmentation and consultant support were implemented to temporarily backfill the positions during recruitment.
2. Resource Prioritization for Urgent Needs
Staff resources continue to focus on the FY 2023/24 storm damage repairs, near-term water improvements, and the City groundwater supply project. These shifts in priorities impacted original project delivery schedules.
3. Complex, Multi-Year Projects
The City is managing several complex projects, such as the Hopyard Road and Owen Drive Intersection Improvements, City Ground Water Supply, Johnson Drive/Costco development, which include roadway and traffic improvements nearing completion, and the West Las Positas Multimodal Reconstruction project, which is nearing design completion. Due to budget and grant requirements, as well as the technical complexity and high level of coordination needed, the latter involved careful planning and value engineering, which required re- prioritizing staff resources to ensure timely delivery.
4. Citywide Planning Efforts
Until recent years, the City had not developed the necessary plans to be able to ensure that maintenance, repair, replacement, and regulatory requirements are being met for critical City- owned infrastructure. To address this deficiency, the City recognized this deficiency and set out to create these plans, requiring extensive engineering resources, including:
• Sanitary Sewer Management Plan (SSMP) to meet state requirements • Asset Management Plan, including data collection for all City assets
• Urban Forest Master Plan adoption and start of implementation • Lighting and Landscape Engineers Reports and rate increases • East Pleasanton developments and planning
FY 2024/25 Achievements and Next Step
Despite these challenges, the City completed the design for 26 CIP projects, saw 13 projects under construction, and finished construction on six projects with total expenditures of $33.7 million, ensuring continued progress toward critical infrastructure goals.
With the approved water rates and forthcoming sewer rates, a utility program management firm has been engaged and will begin in December to provide the necessary staffing and resources to fully implement the sewer and water CIP programs.
CIP Program Updates
Sewer CIP Program
Table 3 summarizes the full list of Sewer CIP projects that had a budget in FY 2024/25, actual expenditures, if any, and recommended carryforwards.
Table 3 – Sewer CIP Projects
In FY 2024/25, the City prioritized planning for its sanitary sewer system. Consultants completed a detailed analysis, assessing current and projected sewer capacity needs based on projected growth and development. This sewer capacity evaluation formed the basis of the Sanitary Sewer Management Plan (SSMP), which outlines essential infrastructure upgrades, maintenance, and condition assessments to comply with the State’s Sewer Systems General Order. The SSMP was approved by the City Council in June 2025 and served as the basis for the adopted 20-Year Sewer CIP and the upcoming sewer rate study. As outlined in the approved CIP program, the existing
sewer projects were defunded to be reprogrammed under the SSMP and 20 Year Sewer CIP following the program's prioritization process.
Water CIP Program
Table 4 summarizes the full list of Water CIP projects that had a budget in FY 2024/25, actual expenditures, if any, and recommended carryforwards.
Table 4 – Water CIP Projects
In FY 2024/25, the City continued and completed urgent near-term water system improvements to support the City Council's direction to shut down City wells due to a detectable level of PFAS and to procure water directly from Zone 7. In June 2024, the City secured a $19.0 million water revenue bond to fund three major water line projects on Bernal Avenue, Stoneridge Drive, and Sunol Boulevard. The water mains are in service; improvements to Turnout #4 to install a new Booster Station need to be carried forward. The City Ground Water Supply partnership project with Zone 7 is underway, with the Phase I feasibility study and completion of the technical report anticipated by the end of 2025.
The Annual Water Distribution System Improvements project supports design and management for the replacement of the failing Diehl water meters and implementing a new Advanced Metering Infrastructure (AMI) program scheduled to begin construction in 2026.
Design work to install permanent emergency generators at four water stations has begun, with construction scheduled to start in 2026. Additionally, planned water system improvements will be incorporated into the West Las Positas Multimodal Reconstruction project, which is currently in its final design phase.
The Water System Management Plan (WSMP) is now complete, providing a comprehensive guide for water supply management, quality standards, distribution capacity, and infrastructure upgrades. It serves as the basis for the new approved water rates.
Parks CIP Projects
Table 5 summarizes the full list of Parks CIP projects that had a budget in FY 2024/25, actual expenditures, if any, and recommended carryforwards.
Table 5 – Parks CIP Projects
*Note: Reserve project budget carryforward was previously included as part of the FY 2025/26 budget adopted by Council; no carryforward is needed.
In FY 2024/25, key accomplishments in the Parks CIP Program include:
1. Started the environmental work for the Augustin Bernal Fuel Management project.
2. Completed construction of the Lions Wayside and Delucchi Parks renovations and started the additional parking lot improvements.
3. Completed construction of Annual Court Resurfacing to repair courts at Fairlands Park and Pleasanton Tennis and Community Park.
4. Completed an update to the City’s Tree Preservation Ordinance and advanced the Urban Forest Master Plan.
5. Completed the Callippe Preserve Trail renovations.
6. Completed phase 3 of irrigation controller replacements.
7. Replaced the median island landscaping on West Las Positas at Foothill Road using City Street Median reserve.
Miscellaneous CIP Program
Table 6 summarizes the full list of Miscellaneous CIP projects that had a budget in FY 2024/25, actual expenditures, if any, and recommended carryforwards.
Table 6 – Miscellaneous CIP Projects
*Note: Reserve project budget was included as part of the FY 2025/26 budget adopted by City Council, no carryforward is needed.
**Note: Reserve project Pioneer Cemetery Master Plan Implementation project budget was included as part of the FY 2025/26 budget adopted by City Council. The FY 2025/26 budget will be revised to $632,655 to reflect FY 2024/25 expenditures.
In FY 2024/25, the City made substantial progress in infrastructure management and upgrades:
1. Asset Management Plan (AMP): Phases II and III continue with comprehensive data collection and a condition assessment of City infrastructure. This effort will create a detailed inventory and clarify long-term maintenance and replacement costs.
2. Soundwall Replacement: Completed the design on the Valley Avenue soundwall, with construction awarded and scheduled to start before year-end. Prior year soundwall funding was combined with Valley Avenue Soundwall to complete the stabilization work without phasing, reducing costs.
3. Completed the downtown decorative streetlights LED lighting updates.
4. Climate Action Plan Implementation: Initially slated for defunding, this project received updated grant funding that was utilized to install first round of fleet electric vehicle (EV) charging. New air quality regulations require fleet electrification, and the City has started design and made an application and grant submissions to PG&E for the installation of necessary infrastructure to build out full fleet charging at 3333 Busch Road.
5. Americans with Disabilities Act (ADA) Transition Plan: Set to begin in 2026, this plan will use AMP data to design a citywide ADA compliance plan for all public buildings, parking lots, sidewalks, and curb ramps.
Transportation & Streets CIP Program
Table 7 summarizes the full list of Transportation & Streets CIP projects that had a budget in FY 2024/25, actual expenditures, if any, and recommended carryforwards.
[continued on next page]
Table 7 – Transportation & Streets CIP Projects
*Note: Reserve project budget was included as part of the FY 2025/26 budget adopted by
City Council; no carryforward is needed.
**Note: Reserve project Tri Valley Trans Fee Reserve FY 2025/26 budget was included as part of the FY 2026 budget adopted by City Council. The FY 2025/26 budget will be reduced to $1,777,618 to reflect FY 2024/25 expenditures.
In FY 2024/25, the City made substantial strides in infrastructure and transportation improvements:
1. Streets Program: Completed the reconstruction of major roadways, including Hopyard Road and Dorman, and overlayed 1.86 million square feet of roadway, replaced 3,372 square feet of sidewalk, 967 linear feet of curb and gutter, and replaced and updated 61 new ADA pedestrian ramps. Slurry sealed 621,000 square feet of roadways.
2. ADA Compliance: New ADA ramp regulations require eight directional ramps per intersection, as seen on Hopyard Road, increasing future project requirements.
3. West Las Positas Multimodal Reconstruction project: Design work continued for the corridor between Hopyard Road and Stoneridge Drive. Value engineering and prioritization efforts are underway to address a funding shortfall. Construction is scheduled to start in the summer of 2026.
4. Key Intersection Upgrades: Hopyard Road and Owens Intersection is under construction, increasing capacity and safety improvements.
5. Traffic and Safety Enhancements: Completed a new traffic signal at Northway Road and Valley Avenue near Harvest Park Middle School. Launched updates to the Bicycle and Pedestrian Master Plan to improve non-vehicular safety and access. Annual Expedited Traffic Lumps and Traffic Calming programs were canceled as part of budget reductions.
6. Johnson Drive Economic Development Zone: In partnership with Costco, Johnson Drive and Stoneridge Drive improvements are expected to be completed by the end of 2025. Carryforward funds and a Costco loan will fund these upgrades.
7. Reserve Projects: Developer-funded projects, including the Dublin Canyon Road Widening, Clara Lane improvements, and the Old Vineyard Corridor are in reserve until further contributions or project milestones are met.
Storm Drain CIP Projects
Table 8 summarizes the full list of Storm CIP projects that had a budget in FY 2024/25, actual expenditures, if any, and recommended carryforwards.
Table 8 – Storm Drain CIP Projects
The 2023 winter storms inflicted significant damage across Pleasanton. Interim repairs and cleanup were completed, and efforts to recover costs are ongoing. On March 19, 2024, the City Council reallocated discretionary funds from the CIP program to support permanent repairs, which will be partially reimbursed by FEMA. Following interim repairs, four permanent repair projects commenced, initiating a multi-year process of design and permitting with FEMA and state regulatory agencies. These projects include East Vineyard Detention Pond, Oak Tree Farm, Augustin Bernal Trail, and Park Parkway Restorations, which have all been submitted to FEMA for review and environmental approvals. FEMA is the controlling permitting agency, and until the permits are approved, the projects can’t proceed to construction.
The Puri Court storm drain replacement is currently under construction, with piping improvements scheduled for completion this fall, prior to the rainy season. The Sycamore Creek Storm Drain and Sassafras Court projects are currently under design and permitting, with construction scheduled for summer 2026.
Facilities CIP Projects
Table 9 summarizes the full list of Facilities CIP projects that had a budget in FY 2024/25, actual expenditures, if any, and recommended carryforwards.
Table 9 – Facilities CIP Projects
*Note: Reserve project budget was included as part of the FY 2026 budget adopted by City Council; no carryforward is needed.
In FY 2024/25, several facility improvements progressed:
1. Library Lighting Upgrades: replaced all library lighting with energy-efficient LED fixtures and a new control system.
2. Ken Mercer Sports Park Electrical: replaced the failed electrical equipment and removed the temporary power poles; final site improvements are underway.
3. Century House Roof: roof replacement was completed to prevent further building damage.
4. Operations Service Center (OSC), Library, and Police Department Fire Alarm Control Systems: design is underway, with construction scheduled for early 2026. According to the CIPPP, several facility projects that were previously partially funded were canceled because additional funding was not provided as part of the FY 25/26 – FY29/30 CIP program, thereby returning the funds to be used on the highest-prioritized projects.
Revenue Carryforwards
Some project revenues, including grants, were not received in FY 2024/25 and need to be carried forward. Table 10 summarizes the recommended revenue carryforwards.
Table 10 – Revenue Carryforwards
The City Council's adoption of the proposed resolution, provided in Attachment 1, will accept the FY 2024/25 year-end financial and program delivery report for the Capital Improvement Program and amend the FY 2025/26 CIP Budget.
EQUITY AND SUSTAINABILITY
Not applicable, as this item is an administrative matter of City business.
OUTREACH
No outreach was conducted, as this item is an administrative matter of City business.
STRATEGIC PLAN ALIGNMENT
Approval of this action advances the ONE Pleasanton strategic plan goal of Funding Our Future to support the City's fiscal sustainability. Examining and reviewing actual revenues and expenditures from FY 2024/25 provides staff with additional information to adjust the current fiscal year's budget, as needed, as well as fine-tune the long-term financial forecast for more informed fiscal planning.
FISCAL IMPACT
The recommendations outlined in this report present all financial activity and changes in the FY 2024/25 CIP Budget for the City Council's approval since the last approved budget adjustments. With City Council approval, staff will update the FY 2025/26 budget for projects and revenues in various capital funds to reflect carryforward amounts in this report.
Prepared by: Submitted by: Approved by:
Dawn DeMarcus, Senior
Budget and Finance Analyst
Adam Nelkie, Assistant Dir.
of Public Works -
Engineering
Susan Hsieh, Director of Finance
Siew-Chin Yeong, Director of Public
Works
Gerry Beaudin, City
Manager
Attachments:
1. Resolution Year End CIP FY 2024-25
2. CIP Estimated Changes in Fund Balance
3. FY25 Year-End Capital Improvement Program Report Presentation
ATTACHMENT 1
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON ACCEPTING THE FY 2024/25 YEAR-END FINANCIAL REPORT FOR THE CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET AND AMEND THE FY 2025/26 CIP BUDGET
WHEREAS, each year a report of financial condition of the Capital Improvement Program is presented to the City Council which includes staff recommendations for budget amendments and carryovers; and
WHEREAS, staff presented to the City Council such a report for the fiscal year ending June 30, 2025.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1: City Council accepts the FY 2024/25 Capital Improvement Program Year- End Financial Report.
SECTION 2: City Clerk shall certify to the passage of this resolution and enter it into the book of original resolutions.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Pleasanton at a regular meeting held on November 18, 2025.
I, Jocelyn Kwong, City Clerk of the City of Pleasanton, California, certify that the foregoing resolution was adopted by the City Council at a regular meeting held on November 18, 2025, by the following vote:
Ayes:
Noes:
Absent:
Abstain:
__________________________
Jocelyn Kwong, City Clerk
APPROVES AS TO FORM:
_________________________
Daniel G. Sodergren, City Attorney
Attachment 2
CITY OF PLEASANTON, CA - CAPITAL IMPROVEMENT PROGRAM
Estimated Changes in Fund Balances, FY 2024/25
Fund Fund Description
Beginning
Balance FY25
FY25 Actual
Revenue
FY25 Actual
Expenses
Estimated Year-End
Fund Balance
Recommended
Revenue
Carryforward
Recommended
Expenditure
Carryforward
Revised YE Fund
Balance
160 Gas Tax 8,193,836$ 4,124,833$ 5,598,339$ 6,720,331 -$ 6,017,337$ 702,993$ 162 Miscellaneous CIP Grants (281,980) 1,986,589 2,458,453 (753,844) 11,895,394 11,423,530 (281,980) 163 Measure B Bike & Pedestrian 422,643 5,937 205,907 222,673 - - 222,673 165 Measure BB Bike & Pedestrian 2,529,613 555,230 1,067,057 2,017,785 - 1,315,872 701,914 166 Measure F 839,044 367,659 799,822 406,882 - 400,000 6,882 167 Specific Plans 886,118 17,639 1,782 901,975 - - 901,975 170 Measure BB - Streets/Roads 4,046,231 1,896,648 3,515,025 2,427,855 - 1,975,000 452,855 172 Transportation Development Grant 150,728 104,956 - 255,684 80,000 80,000 255,684 173 JDEDZ Transportation Fee 1,027,034 20,524 - 1,047,558 - - 1,047,558 201 Miscellaneous CIP-Gen 29,085,244 4,025,347 17,294,859 15,815,731 - 7,924,048 7,891,683 202 Downtown & North Pleas CIP 3,449,212 80,302 - 3,529,514 - 3,040,525 488,989 203 Capital Facilities Impact Fees 2,057,199 1,433,900 78,871 3,412,229 - 228,182 3,184,047 204 Misc Developer Contributions 601,281 111,892 - 713,173 - - 713,173 211 Street CIP - Gen 8,442,402 1,415,397 1,269,850 8,587,949 - 2,211,616 6,376,333 212 Traffic Impact Fees 10,909,794 2,624,719 5,516,056 8,018,457 - 5,331,957 2,686,500 214 Trivalley Transportation 2,418,277 375,429 74,900 2,718,807 - - 2,718,807 215 Streets Developer Contribution 7,069,616 140,610 - 7,210,227 - - 7,210,227 216 NPID I 82-4 1,166,696 19,296 866,697 319,295 - 300,034 19,261 221 Park CIP - Gen 3,537,364 1,497,552 740,429 4,294,488 - 1,067,276 3,227,211 222 Park Development Impact Fees 9,331,482 2,190,509 1,512,797 10,009,194 - 973,591 9,035,603 223 Parks Developer Contributions 337,038 135,661 - 472,700 - - 472,700 241 Sewer Developer Contributions 43,241 861 - 44,101 - - 44,101 421 Water Replacement CIP 718,174 8,493,985 7,967,443 1,244,715 9,660,293 8,176,936 2,728,073 422 Water Connection Fees 4,213,282 156,355 - 4,369,637 - - 4,369,637 426 Recycled Water CIP 1,334,256 454,031 1,132,601 655,685 - 350,000 305,685 431 Sewer Replacement CIP 9,618,502 189,146 521,402 9,286,246 - 2,060,103 7,226,143 432 Sewer Connection Fees 3,167,882 213,835 75,053 3,306,664 - - 3,306,664 441 Storm Drain Replacement/Renov 1,860,111 14,033,741 602,337 15,291,515 - 10,936,679 4,354,836 Total* 117,174,319$ 46,672,585$ 51,299,680$ 112,547,224$ 21,635,687$ 63,812,685$ 70,370,226$ * Please note there is one capital projects funded in non-capital funds. The remaining budget of $531 for this project is recommended to be carried forward.
Fund Project Carryforward Amount
129 COP Urban Forest Master Plan 531 $
Subtotal Carryforward 531 * Total Carryforward from table above 63,812,685
Adjusted Expenditure Carryforward 63,813,216$
11/10/2025
1 FY 2024/25 Year-End Report
Capital Improvement Program
November 18, 2025 Council Meeting
Overview
• Capital projects are multi-year projects
• Project carryforwards will be spent in
future years
• Establishing and funding capital projects
creates opportunities for pursuing grant
funds
• Infrastructure investments are critical in
supporting a livable, vibrant community
2 Planning
Design
Competitive
Procurement
Construction
Project
Closeout
Operations &
Maintenance
1 2
Attachment 3
11/10/2025
2 $63.8 Million CIP Carryforward•The carryforward balance reflects unspent budget, not total project budgets•$60.2 million supports active projects in design and construction•$2.9 million is on-hold projects or additional designated reserve projects•$0.7 million is project that have not started, planned for future projects•$52.6 million in restricted funds•Enterprise Funds•Development Impact Fees•Transportation Funds (Gas Tax, Measure BB, VRF)•Grant Funds•$11.2 million in non-restricted funds•Life and safety projects like Valley Avenue Soundwall and Puri Court Storm Drain3 Summary of Carryovers by Project Category•Reductionsdue to the City Council-approved CIP Project Prioritization Process (CIPPP) resulted in funds returned to the fund balance to be reprogrammed for other capital projectsCategory FY 2024/25 Budget FY 2024/25 Actuals FY 2025/26 Recommended Carryforward FY 2025/26 Adopted Reserve Projects Budget Reductions Facilities 4,232,423$ 956,441$ 1,453,355$ 767,154$ 1,055,473$ Miscellaneous 7,838,054 1,580,654 4,244,041 2,013,358 - Parks 9,850,794 2,219,549 3,556,856 3,501,477 572,912 Sewer 5,057,167 300,563 1,560,103 - 3,196,501 Storm Drain 15,779,779 602,337 10,936,679 - 4,240,763 Transportation & Streets 66,505,337 19,896,615 33,780,237 11,720,235 1,108,251 Water 17,897,122 8,146,126 8,281,415 - 1,469,582 Total 127,160,675$ 33,702,284$ 63,812,685$ 18,002,224$ 11,643,482$ 4 3 4
11/10/2025
3 $33.7 Million Expended on Projects in FY 2024/255
Near-Term Water Improvements - PipelinesLions Wayside Park ImprovementsAnnual Street Resurfacing & Reconstruction (Hopyard Road & Dorman)Stoneridge Drive & I-680 Onramp/Johnson DriveHopyard Road & Owens Drive Intersection ImprovementLions Wayside Park ImprovementsAnnual Slurry Seal & Annual Curb and GutterValley Avenue and Northway Traffic Signal Century House Roof ReplacementDowntown LED Light Conversion $60.2 Million of Projects in Active Design/Construction •W . Las Positas Blvd. Multimodal Reconstruction•Puri Court Storm Drain Improvements•OSC, Library and Police Department Fire Alarm•Sycamore Creek Storm Drain Improvements•FEMA Storm Repair Projects•Turnout #4 Booster Station•City Ground Water Supply Project•Valley Avenue Soundwall Construction•Annual Repaving Program•Annual Curb and Gutter Program•Augustin Bernal Fuels Reduction•Asset Management•Sunol Boulevard Interchange Improvements•Climate Action Plan and ADA Transition Plan•Storm Water System Management Plan6 5 6
11/10/2025
4 CIP Next Steps•Planning for the Future•Sanitary Sewer Management Plan•Asset Management Plan•Facility Master Plan•Urban Forest Master Plan•East Pleasanton•Water & Sewer Rates Study7 Recommendation•Staff recommends that the City Council adopt a resolution to accept the Fiscal Year 2024/25 year-end financial and program delivery report for the Capital Improvement Program (CIP) and approve the carryforwards as included in the report.8 7 8
11/10/2025
5 Thank You!9
9