POMONACITY OF
City Manager’s
FY 2025-26 Proposed Budget for Adoption
Attachment No. 10
General Fund
Other Funds CIP Highlights
TONIGHT‘S PRESENTATION
Operating
Budget
Housing
Authority
Budget
Capital
Improvement
Program (CIP)
Budget
FY 2025-26
THEMES
General Fund Budget - Use $5.5M of
reserves
$7.5M Transfer to Children and Youth
Fund
$6M in General Fund Department
Reductions
$2.6M Budget for HEART Team
Class and Compensation Study
Forthcoming
Rent Stabilization
Fire Services Contract
3 Different Funds for FY 2025-26
32 Full time Positions “Frozen”
ARP Spending Plan Obligated - Spend by
December 2026
Economic Development
By Fund Type Total Proposed Budget $502,745,984
BUDGET AT-A-GLANCE
ALL FUNDS
General Fund $168.66M
Special Revenue Funds 98.34M
Debt Service Funds 19.19M
Capital Project Funds 1.02M
Enterprise Funds 153.37M
Internal Service Funds 10.77M
Housing Authority Funds 29.48M
Capital Improvements Fund 21.92M
Total All Funds $502.75M
General Fund 34% Enterprise 30%
Special Revenue 20%
Housing 6%
Debt Svc. 4%
Capital Imp. 4%
Int. 2% Capit…
GENERAL FUND
FISCAL YEAR 2025-26
TOTAL FY 2025-26
GENERAL FUND
Total Appropriations
$ 163,143,342 $ 168,661,546
Total Revenues
($ 5,518,204)
Deficit
*Since the May 12 Study Session, appropriations increased by $95kth TOTAL FY 2025-26
GENERAL FUND KEY ASSUMPTIONS
Revenue estimates are based on City’s tax
consultant, reports from various State and
Federal agencies, the League of California
Cities, HUD, & State Controller
Property Tax +5%
Sales Tax -2%
UUT +2%
Investment Earnings +13%
$1M Youth Commitment Funds for
Community Services
$6M in General Fund Department
Reductions
32 Full Time Positions “Frozen”
POBs $15M Annual Citywide Payment
UAL $3.9M Payment
No Contributions to Financial Policies
General Fund Budget - Use $5.5M of
reserves
$7.5M Transfer to Children and Youth Fund
FY 2024-25 Budget FY 2024-25 Year End Est
FY 2025-26 Proposed
Property Tx
Sales Tx
Utility Tx
Other Tx
Lic Perm Fee
Chg for Svc
Fines
Oth Revenue
0 10
20 30
40 50
60 FY 2024-25
Adopted Budget
$162.25M
FY 2025-26
Proposed Budget
$163.14M
+0.6%
PROPOSED GENERAL FUND
REVENUES
Property
Tax
Sales
Tax
Utility
Tax
Other
Taxes
Lic, Permit
& Fees
Charge for
Service Fines Other
Revenues
Projected increase of 5%. This is
attributed to increased single
family residential taxable
assessed values
Property
Tax
Sales
Tax
Decrease by 2% or $0.8M due to
consumers cautious on their
spending patterns for discretionary
or big ticket items
UUT
Estimated to increase by 2% due
to water and electricity rate
increases
Other
Revenue
Overall decrease by 4%; $800k
increase in TOT, Cannabis, Property
Transfer Tax; $1M decrease in HOST,
$1M decrease in new development
fees; $400k decrease in fines
51.2 53.7
43.6 42.8
22.0 22.5 21.3 22.1
11.4 8.8
4.2 4.2 2.5 3.1 6.0 6.0
FY 2024-25 FY 2025-26
Police Fire
Pub Wks CIP
Dev Svc
Gen Gov
Gen Svc
Neigh Svc
Comm Svc Libr0
20 40
60 80
100
FY 2024-25
Adopted Budget
$166.22M
FY 2025-26
Proposed Budget
$168.66M
+1%
PROPOSED GENERAL FUND
EXPENDITURES BY DEPARTMENT
Police Fire Public
Works
CIP Development
Services
General
Government
General
Services
Neighborhood
Services
Library
81.0 81.0
36.6 37.6
13.9 13.9
3.5 0.0 7.8 7.4 8.8
14.5 5.0 7.0 6.7 2.2
Community
Services
1.80.6 0.7
$46k decrease overall
$5M Salary & UAL Increases
25 Frozen FTEs = $3.9M
Reduction in controllable contracts,
capital and allocation
Police
Department
Increase of $1.1M per
contract
Fire
Department
Public Works
$57k decrease
$181k increase in Salary
2 Frozen FTEs: Associate Civil
Engineer & Graffiti Removal Worker
$282k in supplemental request
CIP
Zero appropriation in FY 2025-
26; $3.5M decrease
$950k from reserves towards
CIP budget
Development
Services
$386k decrease
1 new FTEs for Senior Plans Examiner and
reclass of Building & Safety Coordinator
Reduction on controllable contracts and
freeze Deputy Development Services
Director
4.7 FY 2024-25 FY 2025-26
Police Fire
Pub Wks CIP
Dev Svc
Gen Gov
Gen Svc
Neigh Svc
Comm Svc Libr0
20 40
60 80
100
FY 2024-25
Adopted Budget
$166.22M
FY 2025-26
Proposed Budget
$168.66M
+1%
PROPOSED GENERAL FUND
EXPENDITURES BY DEPARTMENT - CONTINUED
Police Fire Public
Works
CIP Development
Services
General
Government
General
Services
Neighborhood
Services
Library
81.0 81.0
36.6 37.6
13.9 13.9
3.5 0.0 7.8 7.4 8.8
14.5 5.0 7.0 6.7 2.2
Community
Services
1.80.6 0.7
$5.7M increase overall
5% or $7.5M Measure Y transfer
Supplemental for Finance $32k
2 FTEs Freeze in City Clerk’s
Office
General
Government
$351k increase
$550k increase Humane Society
$1.3M removal Vacancy Factor
Suspended $2.3M Fiscal Policies
General
Services
Neighborhood
Services
$25k increase
$98k increase in staffing
$70k decrease in controllable
contracts
Community
Services
$342k decrease
$1M Youth Commitment
Library
$346k decrease
1 FTEs freeze for vacant Library
Assistant
No allocation of previous youth
commitment funds
4.7 FY 2024-25 FY 2025-26
Personnel
Controllable
Required
Utilities
Allocated
Recovered
Capital
Transfers
0 20
40 60
80 100
PROPOSED GENERAL FUND
EXPENDITURES BY CATEGORY
Personnel Controllable Required Utilities Allocated Recovered Transfers
72.2 80.3
15.8 8.1
42.7 2.2 2.2
25.1 24.8
1.8 0.3 10.4
Capital
12.11.8 $8M increase including $2M for
UAL and $3M MOU increase
Eliminate $1.3M vacancy factor
1 FTE request, 2 reclass, and 1
eliminated position
Personnel
Net decrease $7.6M
$4.6M for 31 FTEs frozen
$1M citywide controllable
contracts reduction and
$500k 115 Pension Trust
contribution
Controllable
Contracts
Required
Expenses
$1.5M increase
$1.1M Fire contract increase
$550k Humane Society
FY 2024-25
Adopted Budget
$166.22M
FY 2025-26
Proposed Budget
$168.66M
+1%
41.2 1.1
FY 2024-25 FY 2025-26
Personnel
Controllable
Required
Utilities
Allocated
Recovered
Capital
Transfers
0 20
40 60
80 100
PROPOSED GENERAL FUND
EXPENDITURES BY CATEGORY-CONTINUED
Personnel Controllable Required Utilities Allocated Recovered Transfers
72.2 80.3
15.8 8.1
42.7 2.2 2.2
25.1 24.8
1.8 0.3 10.4
Capital
12.1 1.8
Capital
$822k decrease
$1M supplemental in 2024-25
No General Fund vehicle
requests
$1.6M overall increase
$5.7M increase for Measure Y,
non contribution to CIP $3.7M
Fiscal Policies not funded
Transfers
FY 2024-25
Adopted Budget
$166.22M
FY 2025-26
Proposed Budget
$168.66M
+1%
41.2 1.1
PROPOSED GENERAL FUND CHANGES
COMPARISON TO MAY 12TH BUDGET STUDY SESSION
Police
Department
Public
Works+$46k
$46k Increase in overtime budget
for 4 days of vendor enforcement
each month
+$43k
$43k Increase in overtime budget for
4 days of vendor enforcement each
month
Development
Services+$24.5k
$24.5k increase in overtime budget
for 4 days of vendor enforcement
each month
Community
Services-$19k
$19k decrease in staffing costs due
to proposed reclassification of
Management Analyst to Senior
Management Analyst is now being
rescinded
Fund Balance $60,285,724 $53,126,303 $47,608,099
Change in Fund Balance N/A ($7,159,421) ($5,518,204)
Expenditures
Transfers
Total
$153,237,740
9,916,084
$163,153,824
$155,983,664
10,445,593
$166,429,257
$156,597,102
12,064,444
$168,661,546
Percentage 37.0% 31.9% 28.2%
Policy Goal 23.0% 24.0% 25.0%
Difference 14.0% 7.9% 3.2%
GF FUND BALANCE
FISCAL RESERVES
FY 2023-24
Audited
FY 2024-25
Est
FY 2025-26
Est
Fiscal Policy Contributions
Section 115 Pension Trust: $5.2M
$1.5M Funding from FY 2023-24
$500k Funding from FY 2024-25
$2.2M FY 2022-23 Unassigned FB
$1.0M From Refuse Franchise Fund
Catastrophic Events: $600k
$300k Funding from FY 2023-24
$300k Funding from FY 2024-25
Equip Replacement: $2.3M; Balance $1.3M
$300k Beginning balance
$200k Funding from FY 2023-24
$200k Funding from FY 2024-25
$1.1M FY 2022-23 Unassigned FB
$506k from Refuse Franchise Fund
CIP Funding: $4.2M; Balance $350k
$1.34M Funding from FY 2023-24
$1.25M Funding from FY 2024-25
$1.1M FY 2022-23 Unassigned FB
$506k from Refuse Franchise Fund
SUPPLEMENTAL REQUESTS
GENERAL FUND $493K
Finance
Department
Police
Department
Public
Works+$32k
$25k Master Fee Schedule -
Cost Study
$7k Audit for Fixed Assets
+$179k
$179k Next-Gen Taser Replacement
(Year 2 of contract)
+$282k
$44k Rubberized surface sealing
$112k Pruning Greenbelt Park Maintenance
$36k Meadowview Garden Maintenance
$50k Water for Greenbelt Park
Maintenance
$40k for Civic Center Plaza Historical
Fountain
SUPPLEMENTAL REQUESTS
GENERAL FUND - NON APPROVED $921K
Community
Services
Development
Services
Police
Department$75k
$75k Five (5) summer
concerts artists fee/contract
services, security, materials
$185k
$145k Two (2) new F-150 Super Cab
$40k Ford Escape
$661k
$661k Eight (8) marked black and
white emergency vehicles for PD
Patrol use
PROPOSED STAFFING CHANGES
651 FULL-TIME EQUIVALENT (FTE)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20260 100
200
300
400
500
600
700
540 539 538 546 549 559 572 578 598 630 641 649 651
Administration Administration / Public Works Development Services Water Resources +0 FTE Add 1 Children
and Youth
Services Director
Delete Assistant
City Manager
+1 FTE Add 1 Senior Plans
Examiner
Reclassify 1 Building
& Safety
Coordinator to
Building & Safety
Supervisor
+0 FTE Reclassify 1
Senior Project
Manager to
Management
Analyst (move to
Public Works)
+1 FTE Add 1 Utility
Systems Technician
Reclassify 1 Storm
Water Maintenance
Worker to Storm
Water Maintenance
Crew Leader
Development Services/Admin.
(Economic Dev.)
+0 FTE Reclassify 1
Management
Analyst to AIPP
Program
Manager (move
to Economic
Development)
UAL vs POB Comparison
In July 2020, the City implemented POBs to
address the City’s Unfunded Accrued
Liability (UAL) for Miscellaneous and Safety
employee pensions provided through
CalPERS.
The amount authorized was the City’s
current liability of $220M.
A strategy was developed to exclude
principal payments to FY 2021 and FY 2022
to preserve General Fund reserves during
the pandemic.
If the City had not issued POBs, it would
have resulted in fiscal challenges to the
General Fund.
Issuance of POBs have significantly
restructured the City’s ongoing long-term
pension obligations. Savings realized is
estimated at $95M over 27 years
Total UAL POBs
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
0 5
10 15
20 25
UNFUNDED ACCRUED LIABILITY &
PENSION OBLIGATION BOND
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
OTHER FUNDS
FISCAL YEAR 2025-26
By Fund Type
PROPOSED
OTHER FUNDS
Special Revenue Funds $98.34M
Debt Service Funds 19.19M
Capital Project Funds 1.02M
Enterprise Funds 153.37M
Internal Service Funds 10.77M
Housing Authority Funds 29.48M
Capital Improvements 21.92M
Total All Funds $334.08M
FY 2025-26
Debt
Service
Fund Type
Special
Revenue
Increased by $7.8M overall from May
12th
Mainly due to appropriation of funds
in the Children and Youth Fund
Capital
Projects
Increased by $250k from May 12th
Due to Carryover related to
Purchase of Tasers
Enterprise
Housing,
Debt, &
Internal
Services
No changes from May 12th
Increased by $800k
Due to FY 2024-25 carryover in
the Water Fund for rehab
services of Well 32 and Well 36
SUPPLEMENTAL REQUESTS
NON-GENERAL FUND $2.7M
Innovation
and
Technology
+$58k
Information
Technology
Fund
$58k Next Gen Anti-Virus IT
Software
+$95k
Measure W
$95k Ford F350 XL with
Service Body Utility
Service Truck
Water
Resources
Department
Water
Resources
Department
+$174k
Sewer Fund
$43k 28 Foot Enclosed
Trailer
$131k Sewer Easement
Jettor-Extension
Machine
$600 Audit of Fixed
Assets
Water
Resources
Department
+$1.07M
Water Fund
$236k Ford F-550 Gate Truck
$145k Two (2) EV Ford F-150
Truck with extended battery
$145k Two (2) F-150 Lighting
Truck with extended battery
$126k Ford 5-yard Dump Truck
$90k Backhoe - construction
equipment
$80k Utility Truck
$73k Ford F-350 Utility Truck
$70k Forklift
$66k Ford F-250 Utility Truck
$35K Mini Roller Vibrator
$2k Audit of Fixed Assets
SUPPLEMENTAL REQUESTS
NON-GENERAL FUND $2.7M - CONTINUED
Public Works
Department
+$335k
Measure M
$180k Pavement Management
Plan and Gold Line Review
Services
$155k Tree Trimming Services
for one year contract extension
+$262k
Refuse
Admin
$262k Regulatory
compliance purchase of
compost and mulch
(SB1383)
Public Works
Department
Public Works
Department
+$616k
Proposition C
$616k Contract for bus
shelter and transit
center power wash
Public Works
Department
+$90k
Equipment
Maintenance
$90k Faster Fleet
Management System
web-based migration
CAPITALIMPROVEMENTPROGRAM
FISCAL YEAR 2025-26
CIP SUMMARY
Expenses
to Date
$107.3M
Carry
Forward
$161.6M
Proposed
FY 2025-26
$21.9M
Following
Four Years
$382.2M
Total
Projects
in CIP Plan
$673M
FY 2025-26 PROPOSED FOR ADOPTION
CIP BY CATEGORY
Streets
Traffic
Parks & Facilities
Water
Sewer
Storm Drains
Miscellaneous
$161.57M
$45.27
19.67 18.73
1.29 9.68
60.50 6.42
Est. Prior
Year
Carryover
$21.92M
$7.76
1.55 7.58
1.92 0.40
2.52 0.20
Proposed
FY 2025-26
$107.35M
Est. Prior
Year
Expenses
$35.63
2.67 1.35
4.70 1.56
53.91 7.54
$382.21M
$190.22
56.04 39.13
2.65 19.27
74.90 -
Following
Four Years+
$673.05M
$278.88
79.93 66.78
10.57 30.90
191.83
14.16 Total
Projects in
CIP Plan
$1.1M State Grant, Parks DIF,
ARP, & CDBG funds
Inspired by Kids World
(Santa Barbara)
Amenities include: All-abilities playground,
restoration of existing fountain, 2-5 year play
area, 5-12 year play area, & new restroom building
CIVIC CENTER PLAZA
NEW PLAYGROUND AND AMENITIES
Project Description:
$15M Project Cost (ATP Cycle 4,
Gas Tax, Measures R & M, Prop. C
Pavement rehabilitation,
roundabouts, sidewalks, curbs,
and alley approaches
Intersection improvements:
Traffic signal upgrades, bulb-
outs, and curb ramps
MULTI-NEIGHBORHOOD
PEDESTRIAN AND BICYCLE IMPROVEMENTS
Bike Lanes (Class II to Class IV)
PARK RESTROOMS
CONSTRUCTION AND REPLACEMENT
ARP FUNDING
LOCATIONS:
TONY CERDA PARK (D2)
WASHINGTON PARK (D3)
PALOMARES PARK (D6)
KENNEDY PARK* (D1)
*INCLUDES NEW CONCESSION STAND
TONY CERDA PARK
$3.97 M
NORTH GAREY
HOLT NORTH TO 10 FREEWAY
$12M Project Cost
Funding includes:
ARP, TCC Grant,
Prop C, Bond, & DIF
Project Features:
Landscape Medians,
accessibility enhancements,
pavement rehabilitation,
signal improvements, and
concrete improvements
* Rendering when trees mature
NEW AND REPLACEMENT
PARK PLAYGROUND EQUIPMENT
Funded mainly by
Measure A
Previously
funded by ARP
Locations:
Country Crossing Park (D5) - Replacement
Washington Park (D3) - New/Additional
Jaycee Park (D4) - Replacement
MLK Jr. Park (D2) - Replacement
Ralph Welch Park (D2) - New/Additional
Ted Greene Park (D6) - Replacement
All-abilities
playgrounds with
rubberized surfacing
WASHINGTON PARK
MLK PARK
FINANCIALSUMMARY ANDCLOSING REMARKS
FISCAL YEAR 2025-26
FY 2025-26
General Fund
Budget
reflects
budget
deficit
Fiscal Policy not
Implemented
Section 115 Trust
Catastrophic Events
Reserve
Equipment
Replacement
CIP
Estimated
Deficit
since
FY 2024-25
Mid-Year
Estimated
Fund
Balance
at end of
FY 2024-25
-$5.5M $0 - $7.2M $53.1M
Estimated
Fund
Balance
percentage
at end of
FY 2024-25
31.9%
GENERAL FUND
FINANCIAL SUMMARY
$1M
Youth
Commitment
Funds in
Community
Services
Budget considers current fiscal conditions
Alternate revenue sources were explored
Community input was requested - 2 Budget Forums
Budget reflects the community’s needs while being
fiscally responsible and sustainable
Economic Challenges
Soaring inflation
Escalating energy/fuel prices
Efforts to lower interest rate hikes
Potential rises in unemployment
Cooling housing market
Revenue limited growth - Reminder that a downturn
could be on the horizon
History has repeatedly demonstrated that revenue
streams can fluctuate, underscoring the necessity for
a balanced and judicious approach to budgeting
The FY 2025-26 budget strikes a careful balance
between:
Addressing the essential needs of our
community
Maintaining fiscal sustainability for the long
term
Measure Y brings a $7.5M use of General Fund that was
not required in the past.
Transfer will increase each year
More core services funded by the General Fund will need to be reduced and/or eliminated in future budgets, unless
significant revenue is discovered
FY 2025-26 General Fund Budget = $5.5M deficit
Fund balance could = $48M by June 2026
The continued reliance on reserves is unsustainable
More drastic plan will need to be proposed next fiscal year and all opportunities for immediate cost savings will be implemented when presented
CLOSING REMARKS
G E N E R A L F U N D
CLOSING REMARKS-CONTINUED
PROPOSED BUDGET FOR ADOPTION
Per City Charter, Budget Adoption
is required before July 1, 2025
Adopt Proposed Operating
Budget CIP Budget, Housing
Authority Budget and Staffing
Changes on June 2, 2025
If budget is not adopted prior to July 1,
the amounts appropriated for current
operations for FY 2024-25 will be
deemed adopted for FY 2025-26 on a
month-to-month basis until a new
budget is adopted