Budget Overview
Proposed FY 2025-26 Budget
and Five-Year CIP
Financial Services Department
May 20, 2025
Overview
Budget Themes
General Fund Summaries
• Summary with Recommendations
• Revenue
• Expenditure
• Decision Packages & Other Spending Items
Capital
Budget Calendar
Recommendations
2 Budget Themes
• Employee compensation costs
• New technology programs and online
services
• Training, health, and wellness
• Critical public safety and public works
programs
• Measure FP implementation
• CalPERS Unfunded Accrued Liability
• Uncertain economic future
3 GF Summary with Recommendations
4 Proposed FY 2025-26 Budget
Estimated Beginning Fund Balance $2,612,555
Core Revenues & Transfers In 123,450,395
Core Expenditures & Transfers Out (123,449,820)
Additional Payments & Funding Sources ($1,186,051)
General Fund Balance before Decision Packages $1,427,079 Recommended Decision Packages Ongoing (net) 338,322
Recommended Decision Packages One-Time (1,722,495)
Total Estimated Year-End Fund Balance after Recommendations $42,906 General Fund Revenues
5 Revenue Type Proposed
FY 2025-26
Increase / (Decrease) over
Midyear FY 2024-25
$ %
Property Tax 38,137,298 711,100 2%
Sales and Use Tax 11,414,000 414,000 4%
Transient Occupancy Tax 9,174,038 892,216 11%
Property Tax in Lieu of LVF 10,614,205 371,975 4%
Utility Users Tax 9,033,626 533,626 6%
Property Transfer Tax 2,300,919 - 0%
Other Taxes 4,563,775 99,025 2%
Total Tax Revenue $85,237,861 $3,021,942 3.7%
Non-Tax Revenue 35,472,106 (167,047) (0.5%)
Transfers In 2,740,428 (1,524,875) (36%)
Total General Fund Revenue $123,450,395 $1,330,020 1.1% General Fund Expenditures
6 Expenditure Type Proposed
FY 2025-26
Increase / (Decrease) over
Midyear FY 2024-25
$ %
Personnel 67,426,580 4,206,333 7%
Maintenance & Operations 10,051,140 (3,949,577) (28%)
Internal Services 30,805,103 0 0%
Capital Outlay 40,000 (49,634) (55%)
Subtotal Expenditures 108,322,823 207,121 0.2%
Transfers Out 15,126,997 (753,787) (5%)
Total Expenditures & Transfers Out $123,449,820 ($546,666) (0.4%) Decision Packages & Other Items
7 Fund
Ongoing
Requests
(net)
One-time
Requests
(net)
Total
FY 2025-26
Request
General Fund (338,322) 1,722,495 1,384,173
All Other Funds 2,100,052 2,457,202 4,557,254
Total $1,761,730 $4,179,697 $5,941,427
• Decision Packages
• Additional Payments & Sources of Funds
Item Amount
Unfunded Accrued Liability Payment (4,263,037)
Use of CalPERS Pension Reserve Fund 3,500,000
Up-front Measure FP Costs (estimated) (422,800)
Use of Future Bond Proceeds/ Interest 422,800
Economic Contingency Reserve Contribution (423,014)
Total ($1,186,051)
Capital Projects Summary
8 Type Amount
($ millions)
FY 2025-26
New $29.7
Carryover $64.2
Total $93.9
Total # of Projects 104
FY 2024-25 Projections
Amount Spent $18.3
Project Progress
Completed 22
Designed/ Awarded 17
Sewer, 5
Street, 36
General
Improvement, 9
Drainage, 6
Waterfront, 16
Park, 15
Public Facility, 17
Capital Projects by Category
Budget Calendar
• May 20th – Budget & CIP Introduction
• June 3rd – Operations Focus
• June 10th – CIP Focus
• June 12th – Budget & Finance Commission
• June 17th –Budget & CIP Adoption
9 Recommended Actions
1. Receive and File the Budget Presentation
2. Provide Direction on the preparation of
additional Budget Response Reports
10