POMONACITY OF
FY 2025-26 Mid-Year Budget Review
TONIGHT‘S PRESENTATION
FY 2025-26
Mid-Year Budget
Review
Overview
FY 2025-26
Estimated Fund
Balance
Summary
FY 2025-26
MID-YEARBUDGET REVIEW
Total Revenue $163,143,342 $164,293,342 $0.00 $164,293,342 $53,841,134 33% $163,306,827 Total Expense $168,661,546 $169,877,784 ($185,000) $169,692,784 $79,287,633 47% $168,726,415 NET ($5,518,204) ($5,584,442) ($185,000) ($5,399,442) ($25,446,499) ($5,419,588) FY 2025-26
MID-YEAR SUMMARY - 50% COMPLETE
A d o p t e d
B u d g e t
A m e n d e d
B u d g e t
Mid-Year
Budget
As of Dec. 31st
2025
% R e c e i v e d /
E x p e n d e d
Year-End
Estimate
The estimated deficit through 2026 is $5.4M, slightly lower than our adopted budget deficit of $5.5M
Proposed
Mid-Year
Amendments
All Property Taxes $53,670,000 $53,670,000 $10,487,721 20% $54,107,161 All Sales & Use Tax $42,800,000 $42,800,000 $13,458,533 31% $41,288,610 All Utility Tax $22,505,000 $22,505,000 $10,748,476 48% $22,306,789 All Other Taxes $22,403,800 $22,403,800 $8,023,783 36% $22,428,800 All Other Sources $22,914,542 $22,914,542 $11,122,622 49% $23,175,467 Total Revenue $164,293,342 $164,293,342 $53,841,134 33% $163,306,827 FY 2025-26
GENERAL FUND REVENUE - MID-YEAR SUMMARY
Amended
Budget
Mid-Year
Budget
Mid-Year
Actuals
% Actuals /
Budget
Year-End
Estimate
FY 2025-26
GENERAL FUND REVENUES
Property Tax Sales & Use Tax
Property Tax revenues represent 33%
of General Fund revenues
Certain Property Tax revenues
typically received and recorded in the
month of December were recorded in
the month of January
As a result, property tax revenues
are below prior year trends
However, Property Tax revenues are
expected to meet or exceed budget
estimates with the addition of new
development
Derived from three distinct sources:
1% share of local sales (State and County Pools)
Allocations of Public Safety Augmentation Fund (PSAF) - County Tax 3/4 Cent Transaction and Use Tax (Measure PG) revenues
With uncertainty in the economy in recent years, sales tax revenues have trended downward as described in previous council reports.
Based on information provided by the City’s Sales Tax Consultant, sales tax revenues are expected to come in within budget or exceed the budgeted estimate
*Note: No requests to increase revenue estimates in Property or Sales & Use Tax categories are being requested.
FY 2025-26
GENERAL FUND REVENUES CONT.
Other Taxes Other Sources
Category includes Business
Licenses, Transient Occupancy
Tax, Property Transfer Tax,
Cannabis Business Tax, and
Franchise Fees (represents 14%
of General Fund Revenues)
Receipts for Business License
and Property Transfer Tax are
coming in as anticipated and
expected to come in close to
budget
Category includes Fees, Licenses, Permits,
and Revenue from Use and Property
categories (Represents 13% of General Fund
revenues)
This category of revenues fluctuates with
development or construction activity
Estimates look promising that revenues will
be met or possibly exceed budget
As indicated last year, some projects were
delayed and revenues are now being realized
A request to amend revenue estimates for
this category is not being requested
Utility Users Tax
(UUT)
Currently budgeted at $22.5M
and represents 14% of General
Fund revenues
Projected to come in close to
our initial budget
*Note: No requests to increase revenue estimates in UUT, Other Taxes, or Other Sources Categories are being requested. 7 2 . 5
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Personnel $75,728,133 45% $34,988,578 46% $75,728,133 $74,922,525 Controllable Expenses $13,700,891 8% $4,129,425 30% $13,515,891 $13,432,985 Required Expenses $42,674,089 25% $21,207,984 50% $42,674,089 $42,607,151 Allocation and Utilities $27,004,340 16% $13,552,548 50% $27,004,340 $26,993,423 Recovered Costs ($2,287,116) (1%) ($1,143,558) 50% ($2,287,116) ($2,287,116) Capital $284,017 0% $105,053 37% $284,017 $284,017
Transfers to Other Funds $12,773,430 8% $6,447,604 50% $12,773,430 $12,773,430 Total Expense $169,877,784 100% $79,287,633 47% $169,692,784 $168,726,415 M i d - Y e a r
B u d g e t
FY 2025-26
MID-YEAR EXPENDITURES BY CATEGORY
A m e n d e d
B u d g e t
% of Total
M i d - Y e a r
A c t u a l s % Expended
Y e a r - E n d
E s t i m a t e
A m e n d e d
B u d g e t
$ 5 . 9 4
$ 0 . 7 2
$ 1 . 4 4
$ 2 . 0 0
$ 3 . 2 5
F Y 2 0 2 3 -
2 4
B u d g e t
% o f T o t a l
3 %
0 %
1 %
1 %
2 %
M i d - Y e a r
E x p .
$ 2 . 8 1
$ 0 . 3 7
$ 0 . 4 3
$ 0 . 7 1
$ 1 . 4 3
Recovered Costs
Mayor & Council
City Clerk
Human Resources
Finance
General Services
( $ 2 . 2 9 )
( 1 % )
( $ 1 . 1 4 )
FY 2025-26
MID-YEAR EXPENDITURES BY DEPARTMENT
% o f
E x p e n d e d
4 7 %
5 1 %
3 0 %
3 5 %
4 4 %
F Y 2 0 2 3 -
2 4
B u d g e t
M i d - Y e a r
B u d g e t
$ 5 . 9 4
$ 0 . 7 2
$ 1 . 4 4
$ 2 . 0 0
$ 3 . 0 7
5 0 %
( $ 2 . 2 9 )
F Y 2 0 2 3 -
2 4
B u d g e t
Y e a r - E n d
E s t i m a t e
$ 5 . 7 4
$ 0 . 7 0
$ 1 . 3 9
$ 1 . 7 1
$ 2 . 8 0
( $ 2 . 2 9 )
A m e n d e d
B u d g e t
$ 1 . 5 0
$ 8 1 . 4 5
$ 3 7 . 7 6
$ 1 4 . 0 4
$ 0 . 6 7
F Y 2 0 2 3 -
2 4
B u d g e t
% o f T o t a l
1 %
4 8 %
2 2 %
8 %
0 %
M i d - Y e a r
E x p .
$ 0 . 7 1
$ 3 8 . 3 1
$ 1 8 . 8 8
$ 5 . 8 8
$ 0 . 3 4
Development Services
Police
Fire
Public Works & CIP
Neighborhood Services
City Administration
$ 7 . 3 9
4 %
$ 3 . 0 1
FY 2025-26
MID-YEAR EXPENDITURES BY DEPARTMENT-CONT.
% o f
E x p e n d e d
4 7 %
4 7 %
5 0 %
4 2 %
5 1 %
F Y 2 0 2 3 -
2 4
B u d g e t
M i d - Y e a r
B u d g e t
$ 1 . 5 0
$ 8 1 . 4 5
$ 3 7 . 7 6
$ 1 4 . 0 4
$ 0 . 6 7
4 1 %
$ 7 . 3 9
F Y 2 0 2 3 -
2 4
B u d g e t
Y e a r - E n d
E s t i m a t e
$ 1 . 5 0
$ 8 1 . 3 6
$ 3 7 . 7 6
$ 1 4 . 3 3
$ 0 . 5 8
$ 7 . 2 1
A m e n d e d
B u d g e t
$ 6 . 6 8
$ 7 . 5 0
F Y 2 0 2 3 -
2 4
B u d g e t
% o f T o t a l
4 %
4 %
M i d - Y e a r
E x p .
$ 2 . 9 6
$ 3 . 7 5
Library
Children & Youth Transfer
Community Services
$ 1 . 8 3
1 %
$ 0 . 8 4
FY 2025-26
MID-YEAR EXPENDITURES BY DEPARTMENT-CONT.
% o f
E x p e n d e d
4 4 %
5 0 %
F Y 2 0 2 3 -
2 4
B u d g e t
M i d - Y e a r
B u d g e t
$ 6 . 6 8
$ 7 . 5 0
4 6 %
$ 1 . 8 3
F Y 2 0 2 3 -
2 4
B u d g e t
Y e a r - E n d
E s t i m a t e
$ 6 . 6 8
$ 7 . 5 0
$ 1 . 7 6
$169.88M
$79.29M
100%
$169.69M
$168.73M
47%
GENERAL & NON-GENERAL FUND
MID-YEAR APPROPRIATION & REVENUE ESTIMATE REQUESTS
The CalVIP grant budgeted $185,000 for
indirect cost related to administering the
grant
Staff allocated expenditures associated
with Finance department to the CalVIP
grant
The costs would relate to Finance
administrative support including, but not
limited to accounting, purchasing, and
accounts payable
-$185k
Included in the 1st Quarter report, presented and
approved by the City Council in November 2025 were
several amendments to the City’s Operating Budget
In particular was an appropriation to the City’s
Pomona Energy Choice Fund for the General Fund
Administrative services, with a corresponding
revenue estimate increase for the Transfer to CIP
Project #74115
One of the 4 entries associated wasn’t included in the
1st quarter report action, as a result staff is
requesting appropriation to the Energy Choice Fund
in the amount of $418k
+$418k
SUMMARY
MID-YEAR APPROPRIATION & REVENUE ESTIMATE REQUESTS
General Fund Revenue Estimate Appropriation Change
Admin Cost Adjustment for Prop 47 Grant (CalVIP) (FD101-CC1101-SC392) $0.00 ($185.000) TOTAL GENERAL FUND REVENUE ESTIMATES/APPROPRIATIONS $0.00 ($185,000) Non-General Fund Revenue Estimate Appropriation Change
City’s Pomona Choice Energy Fund Cleanup for 1 Quarter Action (FD551-CC8201-SC299)st $0.00 $418,088 TOTAL NON-GENERAL FUND REVENUE ESTIMATES/APPROPRIATIONS $0.00 $418,088 TOTAL REVENUE ESTIMATES/APPROPRIATIONS $0.00 $233,088
FY 2025-26
ESTIMATED FUNDBALANCE
Item
Fund Balance FY 2024-25 (Not Audited) $58,760,061
Total Amended Revenue at Mid Year
Total Amended Expense at Mid Year
Net Total To Date (Revenue/Expenditures)
$164,293,342
169,692,784
($5,399,442)
Total Request at March 16, 2026 City Council Meeting ($185,000) Anticipated 2025-26 Usage of Unassigned Fund Balance ($5,214,442) Updated Estimated Budgeted Fund Balance FY 2025-26 $53,545,619 Estimated Committed Fund Balance Per Policy (25%) $42,423,196
GENERAL FUND
ESTIMATED FUND BALANCE
P r o j e c t e d F Y 2 5 - 2 6
E s t i m a t e d F u n d B a l a n c e
Based on the preliminary draft audit
June 30, 2025 figures, the General
Fund balance is $58.8M which is about
35% of operating expenditures
However, based on the Amended Mid-
Year Budget estimated budgetary
deficit, the revised Estimated Ending
Fund Balance at 6/30/36 will be
$53.5M
Even with the use of reserves, the
General Fund should achieve the Fund
Balance Policy target of 25%
As shown in the table on the left, due to
another year with a deficit budget, the
Estimated Ending Fund Balance of
$53M is down to 31% of Expenditures
CLOSING REMARKS
B a s e d o n o u r M i d - Y e a r B u d g e t r e p o r t , s t a f f i s r e c o m m e n d i n g t h e C i t y C o u n c i l t o a p p r o v e o n e t h e c l e a n u p a p p r o p r i a t i o n d i s c u s s e d e a r l i e r h e r e i n
In light of the budgetary challenges
associated with Measure Y –
Children and Youth program transfer,
economic factors, contractually
obligated increases, a new Fire
Service agreement, and other
operating increases, the FY 2026-27
budget is expected to have a
budgetary deficit
D u e t o o u r n e w E R P s y s t e m , w e
a n t i c i p a t e t h a t t h e b u d g e t d o c u m e n t w i l l l o o k d i f f e r e n t f r o m p r i o r y e a r s d u e t o t h e n e w E R P a n d m a y b e
r e d u c e d i n s i z e d u r i n g t h i s t r a n s i t i o n y e a r
CLOSING REMARKS
CONT.
Finance Staff will continue to apprise
the Mayor and City Council of any
significant impacts
As noted in the Fund Balance
discussion, an updated ten-year
financial forecast of the General
Fund will be discussed with the
baseline scenario of the current
budget, with two scenarios that
could impact the budget
The first scenario relates to the
Fire Contract on tonight’s
agenda
The scenarios relates to the June
2, 2026 Ballot Measure Z
The national economic situation will
continue to bring challenges and reminds
us of the importance of having adequate
reserves
Tariffs, unemployment, interest rate
fluctuation, and changes in the market
raise questions if a downturn in the
economy is forthcoming
FISCAL YEAR 2026-27
BUDGET MEETINGS
Important Dates
Two Budget Study Sessions will be held in
Pomona City Council Chambers and will be
available to watch online and on TV via the public
access channel or on the City’s live stream
Session 1
March 23, 2026 at 7:00PM
Session 2
April 1, 2026 at 3:00PM
Build upon last years format to encourage a more
meaningful community dialogue with
constructive input
We encourage all community members to
attend and participate in these important budget
forums
The FY 2026-27 Annual Proposed
will be brought forward for discussion
on Monday, May 11, 2026 and
scheduled for Adoption at a Special
City Council meeting on Tuesday,
May 26, 2026