Attach 3_FY 2026-27 Budget Presentation — City Council / Housing Authority, May 11, 2026

POMONACITY OF
City Manager’s
FY 2026-27 Proposed Budget for Adoption
Attachment No. 3
General Fund
Other Funds
CIP Highlights
TONIGHT‘S PRESENTATION
Operating
Budget
Housing
Authority
Budget
Capital
Improvement
Program (CIP)
Budget
FY 2026-27

BUDET DOCUMENT AND ENTERPRISE RESOURCE PLANNING
(ERP) FINANCIAL AND HUMAN CAPITAL SOFTWARE
FY 2026-27 Budget Document has Minor
Format Changes in Reports via our new
ERP System - Workday
ERP Project was approved as part of the
American Rescue Plan (ARP) Spending Plan
$3.3M appropriation
Modern system – Integrates Human
Resources and Finance functions in a
user-friendly way under a single platform
Cybersecurity - selected vendors are Service
Organization Control that ensures industry
best practices are followed for security,
availability, data processing, confidentiality,
and privacy
Reputable with vast support – Workday is a
provider to organizations all over the world
and has moved into serving public sector
within the past decade
Centralized system of record – A "single system
of record” since it serves as a central data
repository for data. This will allow business
functions, tasks, approvals, and analytics to be
completed in a single system
FY 2026-27
THEMES
General Fund Budget - Use $11.4M of
reserves
$9M Transfer to Children and Youth Fund
via Measure Y Charter Amendment
6% of General Fund Revenues
$6M in General Fund Department
Reductions continued from FY 2025-26
“Unfunding” 32 vacant positions, 28.85 of
which are General Fund funded
Two new funded General Fund
Programs
HEART Team $2M
Illegal Dumping $560k
Rent Stabilization
Funding for 2 Half of FY 2026-27 in
General Fund - Placeholder
nd
Sunsets at end of December 2026
FY 2025-26 General Fund Budget
Amended Deficit of $5.5M
Revised Deficit $713k - 2 Onetime Events
3-year Fire Services Contract - Approved
March 2026
FY 2025-26 Fee Revised (April 2026)
FY 2026-27 Totals $37.9M ($100k increase)
Future Impacts will occur in FY 2026-27
By Fund Type
Total Proposed Budget $436,954,704

BUDGET AT-A-GLANCE

ALL FUNDS
General Fund $181.90M
Special Revenue Funds 65.61M
Debt Service Funds 19.22M
Capital Project Funds 3.15M
Enterprise Funds 128.89M
Internal Service Funds 8.68M
Housing Authority Funds 29.50M
Total All Funds $436.95M
Gener al F und 4 1 % E n t e r p r i s e 3 0 %
S p e c i a l R e v e n u e 1 5 %
H o u s i n g 7 %
D e b t S v c . 4 %
I n t . 2 %
F I S C A L Y E A R 2 0 2 6 - 2 7

GENERAL FUND
TOTAL FY 2026-27

GENERAL FUND
Total
Appropriations
$ 1 7 0 , 5 3 0 , 1 3 4
$ 1 8 1 , 9 0 4 , 0 7 7Total Revenues
( $ 1 1 , 3 7 3 , 9 4 3 ) Deficit
TOTAL FY 2026-27

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 +10%
Sales Tax <-1%
UUT <+1%
Investment Earnings -14%
POBs $15M Annual Citywide Payment
UAL $5.4M Payment
Liability Allocation costs increased $1.3M
Insurance Premiums increased by
$250k
Claims Increase $770k
No Contributions to Financial Policies
MOU Salary Increase of 5%, Oct. 2026
Federal Housing Programs Threat
Measure Z Ballot Measure
Property Transfer Tax - Future Ballot
F Y 2 0 2 5 - 2 6 B u d g e t F Y 2 0 2 6 - 2 7 P r o p o s e d P
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R
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v
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n
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e
0 1 0
2 0
3 0
4 0
5 0
6 0
FY 2025-26
Adopted Budget
$164.49M
FY 2026-27
Proposed Budget
$170.53M
+3.7%

PROPOSED GENERAL FUND

REVENUES
Property
Tax
Sales
Tax
Utility
Tax
Other
Taxes
Lic, Permit
& Fees
Charge for
Service Fines Other
Revenues
Projected increase of $5.2M. This
is attributed to increased single
family residential taxable
assessed values
Property
Tax
Sales
Tax
Decrease by less than 1% or $159k
due to consumers being cautious on
their spending patterns for
construction, fuel, and
transportation
UUT
Estimated to increase by less
than 1% or stay the same as last
fiscal year
Other
Revenue
Overall increase by $914k increase
in TOT, Cannabis, Property Transfer
Tax; $619k increase in Franchise
Fees and a slight decrease of $367k
in License, Permits, & Fees.

53.7 58.9

42.8 42.6

22.5 22.5 22.423.0

8.8 9.2

4.3 4.5 3.9 4.0 6.1 5.7

F Y 2 0 2 5 - 2 6 F Y 2 0 2 6 - 2 7
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r
0 2 0
4 0
6 0
8 0
1 0 0
FY 2025-26
Adopted Budget
$169.78M
FY 2026-27
Proposed Budget
$181.90M
+7%

PROPOSED GENERAL FUND

EXPENDITURES BY DEPARTMENT
Police Fire Public
Works
CIP Development
Services
General
Government
General
Services
Neighborhood
Services
Library

81.5 87.0

37.837.9

14.0 16.9

0.0 7.4 7.8

13.9 16.2

6.2 6.7 7.0 1.8
Community
Services

2.10.7 0.9
$5M increase overall
$4.8M Salary & UAL
$900k HEART Team
$1.5M Allocations
24 Frozen FTEs = $4M
Police
Department
Revised FY 2025-26 Contract
Increase of $100k per
contract
Fire
Department
Public Works
$2.9M increase overall
HEART Team & Illegal Dumping
Program
$700k Allocations
2 Frozen FTEs = $116k
CIP Zero appropriations in FY 2026-27
$1M of CIP Reserves Utilized
Development
Services
$415k increase overall
$215k Reduction in Contracts
$616k increase in staffing
1 Frozen Position = $250k

5.90.0 F Y 2 0 2 5 - 2 6 F Y 2 0 2 6 - 2 7
P
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F
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P
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S
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L
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r
0 2 0
4 0
6 0
8 0
1 0 0
FY 2025-26
Adopted Budget
$169.78M
FY 2026-27
Proposed Budget
$181.90M
+7%

PROPOSED GENERAL FUND

EXPENDITURES BY DEPARTMENT
Police Fire Public
Works
CIP Development
Services
General
Government
General
Services
Neighborhood
Services
Library

81.5 87.0

37.837.9

14.0 16.9

0.0 7.4 7.8

13.9 16.2

6.2 6.7 7.0 1.8
Community
Services

2.10.7 0.95.90.0
$2.3M increase overall
$9.2M transfer for Pomona Fund
for Children and Youth
$214k savings for 2 unfilled FTEs
in City Clerk’s Office
General
Government
$253k increase overall
$400k increase Humane Society
$477k increase in personnel charges
from ARP grant ending Dec.

Offset by $418k CIP & $200k in
contracts reductions
General
Services
Neighborhood
Services
$223k increase overall
$194k increase in allocations
Community
Services
$286k increase overall
Increase relates to allocated
costs for self-insurance funds
Reductions in Youth
Commitment Program
$216k increase overall
Increase related to MOU salary
and benefit increases
Library
F Y 2 0 2 5 - 2 6 F Y 2 0 2 6 - 2 7
P
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s
0 2 0
4 0
6 0
8 0
1 0 0

PROPOSED GENERAL FUND

EXPENDITURES BY CATEGORY
P e r s o n n e l
C o n t r o l l a b l e
R e q u i r e d
Utilities Allocated Recovered
T r a n s f e r s

74.86 83.07

14.44 13.54

43.43 2.23 2.34

24.7727.70

2.47 -

12.77 Capital

14.03 2.20
$8.2M increase including $1.2M
for UAL and $2M for the HEART
and Illegal Dumping Program
$476k placeholder for ARP
positions that will need to be
funded after December 2026
Personnel
Net decrease of $895k
Decrease related to appropriations
for $450k for controllable
contracts, $235k for vehicle vendor
costs, $125k for special programs, &
$133k for building contracts
Controllable
Contracts
Required
Expenses
$500k increase for the Humane
Society & Fire Contract.
$200k illegal dumping and
HEART funding movement
FY 2025-26
Adopted Budget
$169.78M
FY 2026-27
Proposed Budget
$181.90M
+7%

42.72 0.45
F Y 2 0 2 5 - 2 6 F Y 2 0 2 6 - 2 7
P
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n
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l
C
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C
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T
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n
s
f e
r
s
0 2 0
4 0
6 0
8 0
1 0 0

PROPOSED GENERAL FUND

EXPENDITURES BY CATEGORY
P e r s o n n e l
C o n t r o l l a b l e
R e q u i r e d
Utilities Allocated Recovered
T r a n s f e r s

74.86 83.07

14.44 13.54

43.43 2.23 2.34

24.7727.70

2.47 -

12.77 Capital

14.03 2.20
$103k increase represents
increases in water, electricity,
and gas
Utilities
$2.9M increase in the areas of Self-
Insurance claims & support areas.

Support areas include the rise in
Workers Compensation & Liability
claims, and one-time increase for
the new ERP software
Allocated
Costs
Recovered
Costs
$268k change is a result of
the CPI adjustment for the
Coset Overhead Allocation
FY 2025-26
Adopted Budget
$169.78M
FY 2026-27
Proposed Budget
$181.90M
+7%

PROPOSED GENERAL FUND

EXPENDITURES BY CATEGORY
P e r s o n n e l
C o n t r o l l a b l e
R e q u i r e d
Utilities Allocated Recovered
T r a n s f e r s

74.86 83.07

14.44 13.54

43.43 2.23 2.34

24.7727.70

2.47 -

12.77 Capital

14.03 2.20
FY 2025-26
Adopted Budget
$169.78M
FY 2026-27
Proposed Budget
$181.90M
+7%

42.72 0.45
Capital
$453k decrease as no capital
expenses are budgeted for
vehicles and equipment at
this time
$1.2M increase due to the
Children & Youth Fund
transfer from the General
Fund for the required 6% per
the City Charter
Transfers
Fund Balance $58,771,856 $58,058,895 $46,684,952
Change in Fund Balance N/A ($712,961) ($11,373,943)
Expenditures
Transfers
Total
$155,027,334
10,489,395
$165,516,729
$153,280,788
12,715,919
$165,996,707
$167,877,431
14,026,646
$181,904,077
Percentage 35.5% 35% 25.7%
Policy Goal 23.0% 24.0% 25.0%
Difference 12.5% 11.0% 0.7%

GF FUND BALANCE

FISCAL RESERVES
FY 2024-25
Audited
FY 2025-26
Est
FY 2026-27
Est
No Fiscal Policy Contributions
Balances To Date:

Section 115 Pension Trust:
$3.8M
Catastrophic Events:
$600k
Equip Replacement: $960k
CIP Funding: $2M

SUPPLEMENTAL REQUESTS
Each year, the budget includes supplemental
budget recommendations for staffing, services,
and equipment requests.

With the limited resources available and to fund
the contractual obligations in place, at this time
staff is proposing no supplemental increases
within the FY 2026-27 Operating Budget for
General Fund and all Non-General Funds

PROPOSED STAFFING CHANGES
651 FULL-TIME EQUIVALENT (FTE)
2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 0 1 0 0
2 0 0
3 0 0
4 0 0
5 0 0
6 0 0
7 0 0
5 4 0
5 3 9
5 3 8
5 4 6
5 4 9
5 5 9
5 7 2
5 7 8
5 9 8
6 3 0
6 4 1
6 4 9
6 5 1
6 5 1
Note: There are no changes in the number of FTEs and reclassifications of positions in the FY 2026-27 budget

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
T otal U AL POBs
20 21
20 22
20 23
20 2
4 20
25 20
26 20
27 20
28 20
29 20
30 20
31 20
32 20
33 20
34 20
35 20
36 20
3 7
20 38
20 39
2040 204
1 2042 2043 2044 2045 2046 204
7 2048
0 5
1 0
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
F Y 2 0 2 3 - 2 4
B u d g e t
F Y 2 0 2 3 - 2 4
B u d g e t
C o m m u n i t y S e r v i c e s
N e i g h b o r h o o d S e r v i c e s
P o l i c e D e p a r t m e n t
P u b l i c W o r k s
D e v e l o p m e n t S e r v i c e s
L i b r a r y S e r v i c e s

YOUTH FUNDING BUDGET
FY 2024-25 TO FY 2026-27
FY 2024-25
Budget
$ 1 . 5 0
$ 7 . 5 0
$ 1 . 1 2
$ 2 6 . 2 0
$ 0 . 6 4
$18M for Programming
$22 CIP Investment
$ 7 . 4 2
$ 1 5 . 9 7
$ 1 . 1 2
$ 2 4 . 2 3
$ 0 . 4 4
FY 2026-27
Budget
$ 2 . 0 2
$ 1 5 . 6 0
$ 1 . 1 4
$ 1 4 . 6 9
$ 0 . 4 2
$ 4 4 . 7 7 M
$ 5 6 . 2 2 M
$ 4 0 . 9 0 M
$ 7 . 7 7
$ 7 . 0 5
$ 7 . 0 4
FY 2025-26
Budget
F I S C A L Y E A R 2 0 2 6 - 2 7

OTHER FUNDS
By Fund Type

PROPOSED

OTHER FUNDS
Special Revenue Funds $65.61M
Debt Service Funds 19.22M
Capital Project Funds 3.15M
Enterprise Funds 128.89M
Internal Service Funds 8.68M
Housing Authority Funds 29.50M
Total All Funds $255.05M
FY 2026-27
D e b t
S e r v i c e
Fund Type
Special
Revenue
$27M revenue & $46M expenditure
decrease from last fiscal year mainly
due to ARP funding no longer
available for future budgets
Debt
Service
Capital
Project
$21.6M of new CIP projects have been
included in the budget
$12.6M in Special Revenue Funds representing
mostly street related projects
$6.1M in Enterprise Fund projects related to
Water and Sewer
$2.9M in Capital Project funds
$35k increase in budget from prior
fiscal year
Stability reflects the absence of new
bond issuances and no bonds
reaching their maturity date
By Fund Type

PROPOSED

Pomona Choice Energy Authority is also
estimating a decrease in revenues
Increase in revenue budgets to
better represent actual revenues
that are anticipated and necessary
to pay for actual expenditures
Allocated costs are charged to other city
departments that benefit from their services.

Allocations are formulated on various factors
- #of employees, or number of equipment or
actual claims experience.

F I S C A L Y E A R 2 0 2 6 - 2 7

CAPITALIMPROVEMENTPROJECT

CIP SUMMARY
Expenses
to Date
$164.6M
Carry
Forward
$141.5M
Proposed
FY 2026-27
$21.6M
Following
Four Years
$387.3M
Total
Projects
in CIP Plan
$723.4M
Pending
FY 2026-27
$8.4M
FY 2026-27 PROPOSED FOR ADOPTION

CIP BY CATEGORY
Streets
Traffic
Parks & Facilities
Water
Sewer
Storm Drains
Miscellaneous
$ 1 4 1 . 5 4 M
$ 2 6 . 1 4
1 9 . 2 1
3 2 . 6 4
3 . 0 9
1 0 . 2 4
3 3 . 1 7
1 7 . 0 6
E s t . P r i o r
Y e a r
C a r r y o v e r
$ 2 1 . 5 8 M
$ 6 . 4 2
5 . 1 5
4 . 5 1
1 . 5 0
1 . 6 8
1 . 9 2
0 . 4 0
P r o p o s e d
F Y 2 0 2 6 - 2 7
$ 1 6 4 . 5 6 M
E s t . P r i o r
Y e a r
E x p e n s e s
$ 6 3 . 2 3
4 . 4 4
2 . 8 5
4 . 8 7
3 . 0 3
7 5 . 2 0
1 0 . 9 6
$ 3 8 7 . 2 9 M
$ 1 9 8 . 6 1
4 8 . 6 7
4 1 . 3 7
2 . 4 2
1 7 . 9 5
7 5 . 7 6
2 . 5 0
F o l l o w i n g
F o u r Y e a r s +
$ 7 2 3 . 3 6 M
$ 2 9 6 . 7 5
7 8 . 4 2
8 1 . 3 6
1 1 . 8 7
3 2 . 9 0
1 9 1 . 1 5
3 0 . 9 2
T o t a l
P r o j e c t s i n
C I P P l a n
$ 8 . 4 0 M
$ 2 . 3 5
0 . 9 5
-
-
-
5 . 1 0
-
P e n d i n g
F Y 2 0 2 6 - 2 7
F I S C A L Y E A R 2 0 2 6 - 2 7

FINANCIALSUMMARY ANDCLOSINGREMARKS
FY 2025-26
General Fund
Budget
reflects
budget
deficit
Fiscal Policy not
Implemented
Section 115 Trust
Catastrophic
Events Reserve
Equipment
Replacement
CIP
Updated
Deficit
Year-End
Estimate
FY 2025-26
Estimated
Fund
Balance
at end of
FY 2025-26
-$5.5M $0 - $713k $58M
Estimated
Fund
Balance
percentage
at end of
FY 2025-26
35%
GENERAL FUND FY 2025-26

FINANCIAL SUMMARY
+$5M
Revised Fire
Contract
DIF Reimb
for Civic
Center CIP
Project
FY 2026-27
General Fund
Budget
reflects
budget
deficit
General Fund
Revenues
Property Tax
$6M
General Fund
Appropriations
Staffing $8.2M
Allocated Costs
$3M
HEART and
Illegal Dumping
$2.6M
Estimated
Fund
Balance
at end of
FY 2026-27
-$11.4M +$6M $12M $47M
Estimated
Fund
Balance
percentage
at end of
FY 2026-27
25%
GENERAL FUND FY 2026-27

FINANCIAL SUMMARY
+$6M
Deficit
Higher vs.

FY 2025-26
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
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 2026-27 budget strikes a careful balance
between:

Addressing the essential needs of our
community
Maintaining fiscal sustainability for the long
term
Measure Y brings a $9.2M 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 2026-27 General Fund Budget = $11.4M deficit
Fund balance could = $58M 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
Adopt Proposed Operating
Budget CIP Budget, Housing
Authority Budget on May 26,
2026
Special City Council Meeting
If budget is not adopted prior to
July 1, the amounts appropriated
for current operations for FY 2025-
26 will be deemed adopted for FY
2026-27 on a month-to-month
basis until a new budget is adopted
Per City Charter, Budget
Adoption is required before
July 1, 2026
Citywide Master Fee Schedule
Cost Study will be presented
at May 26th Budget Hearing

City Council / Housing AuthorityMay 11, 2026

City Council / Housing Authority
May 11, 2026