Item 09 2025-00611 Fiscal Year (FY) 2025-26 Proposed Budget Overview — Sacramento City Council, May 13, 2025 (part 1 of 5)

City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00611 5/13/2025 Item 9.

Fiscal Year (FY) 2025/26 Proposed Budget Overview
File ID: 2025-00611
Location: Citywide
Recommendation: Review, comment and provide direction for final budget adoption.

Contact: Peter Coletto, Director of Finance, (916) 808-5416, [email protected]; Mirthala Santizo, Budget Manager, (916) 808-5078, [email protected]; Department of Finance
Presenter: Peter Coletto, Director of Finance, (916) 808-5416, [email protected]; Mirthala Santizo, Budget Manager, (916) 808-5078, [email protected]; Department of Finance
Attachments:
1-Description/Analysis
2-FY2025/26 Proposed Budget
3-2025-2030 Proposed Capital Improvement Program
4-FY2025/26 Proposed Budget Reductions Strategies - Used 5-FY2025/26 Proposed Budget Reductions Strategies - Not Used 6-Supplemental Budget Information
Description/Analysis
Issue Detail: The City Charter, Article IX Section 111, requires the City Manager to deliver budget recommendations no later than 60 days prior to the start of the new fiscal year. The City Manager’s FY2025/26 Proposed Budget was released on April 30, 2025. This report transmits the FY2025/26 Proposed Budget (Budget) (Attachment 2) and the 2025-2030 Capital Improvement Program (CIP), which includes the FY2025/26 CIP Budget (Attachment 3) to Council for approval and is available at https://www.cityofsacramento.gov/finance/budget.

Introduction
The City continues to face significant financial challenges as it works to resolve an ongoing imbalance between City operating costs and available resources, which is known as a structural deficit. The Budget is balanced and closes a $62.2 million funding gap. The Budget totals

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File ID: 2025-00611 5/13/2025 Item 9.
approximately $1.65 billion from all funding sources and supports 4,984.83 full-time equivalent (FTE) positions. This includes $847 million for General Fund operations and capital projects, and $800 million for the City’s enterprise and other fund activities.

Structural Budget Deficit
In February, the City released its updated financial forecast which projected a $62.2 million budget deficit for FY2025/26 with deficits increasing annually throughout the forecast period. The forecast assumed continued economic growth and revealed a fundamental imbalance in the City’s budget with expenses outpacing revenues. This imbalance is known as a structural deficit. The structural deficit is the result of decisions that the City and voters have made over the past few years along with macroeconomic forces such as inflation. These decisions include expanding into new service areas, increased costs of labor contracts, increasing staffing levels, and ballot measures redirecting general revenues for specific purposes. Substantial federal aid to assist local governments mitigate COVID- 19 pandemic impacts allowed the City to fund these cost increases, however, the federal funding was one-time while many of the increased costs are ongoing. In summation, the City is not facing a budget deficit due to a recession or economic downturn, instead the structural budget deficit is due to the City offering more services with a higher cost base which can no longer be sustained with existing revenues. This has resulted in a situation where City expenses are growing faster than City resources.

Budget Modifications - Reductions
The Budget seeks to address the City’s structural deficit by defining core City services and taking a strategic approach to revenue enhancements and expenditure reductions instead of simply pursuing across-the-board cuts. Reduction strategies included in the Budget aim to minimize program and service impacts to the community to the extent possible.

Departments were instructed to submit reduction plans that totaled 15% of their General Fund discretionary funding and were given a framework designed to protect core services and Council priorities. A combination of 160 revenue enhancements and expenditure reductions were submitted.

In addition to the proposed department strategies, there were 29 Citywide reduction strategies totaling $44.3 million.

Departmental reduction strategies were categorized on a one through four scale based on impact to residents and communities, with one being a low impact and four being resulting in a severe impact.

Appointed officers (City Attorney, City Auditor, City Clerk, City Treasurer, and Office of Public Safety Accountability) determined the level of impact for their strategies.

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File ID: 2025-00611 5/13/2025 Item 9.

Category
FTE
Change
Net Budget
Change
Revenues 2.00 ($20,519,704)
1 (52.90) (9,582,454)
2 (78.90) (12,217,470)
3 (160.41) (17,693,659)
4 (196.05) (33,216,355)
Citywide* - (44,335,482)
Non-Categorized - (330,000)
Total (486.26) ($137,895,124)
All Strategies - General Fund
* Includes prior year savings of $26.8 million
Of the $137.9 million, the Budget includes $69.9 million in reduction strategies with $34.6 million in ongoing reduction strategies and $35.2 million in one-time solutions. The net elimination of 99.30 full- time equivalent (FTE) positions includes the elimination of 86.50 vacant FTE positions, the elimination of 12.80 filled FTE positions, the funding shift of 2.0 filled FTE positions to the Community Center Fund and the addition of 2.00 FTE positions. Details of the proposed strategies can be found in Attachment 4. All strategies that were not utilized can be found in Attachment 5.

In addition to budget balancing strategies, the Budget also includes minor department augmentations, additional Citywide revenue and expense adjustments, salary savings adjustments and other adjustments that factor into closing the $62.2 million gap.

HHAP-6 Vs Forecast ($5.4) - - -
Available Prior Year Savings $23.5 - - -
Revenue Enhancement $20.3 2.0 - 2.0
Level 1 Reductions $9.3 (45.9) (6.0) (51.9)
Level 2 Reductions $6.0 (40.6) (8.8) (49.4)
Citywide Strategies $7.4 - - -
Department Augmentations ($1.2) 14.0 - 14.0
Cost Plan, Offset, and Salary
Savings Adjustments
$3.7 - - -
Retirement, Insurance, and Other
Budget Adjustments
($0.4)
Budget Balancing Total 63.1 (70.5) (14.8) (85.3)
Net Surplus / (Deficit) $0.96

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File ID: 2025-00611 5/13/2025 Item 9.

Amount
(millions)
Vacant FTE
Impact
Filled FTE
Impact
Total FTE
Impact
Projected Budget Deficit ($62.2)
Budget Balancing
The Budget also includes $1.3 million in increases and strategic reductions to other funds that were directly tied to the proposed reduction strategies. This included swapping General Fund for other funds and citywide strategies that not only reduced the impact to General Fund, but also to the other funds.

Other Modifications - Augmentations and Position Add/Deletes There were $1.2 million in modifications to the General Fund and Innovation and Growth Fund (IGF) for augmentations and position add/deletes. This also included an addition of 13.98 FTEs.

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Finally, the Budget includes $1.5 million in modifications to other funds for augmentations and position add/deletes. and an increase of 9.75 FTEs.

Department
(Fund) FTE Change
Net
Budget
Change
Convention and Cultural Services (Community Center) - $507,129 Human Resources (Workers' Compensation Fund) - (19,666) Information Technology (Community Center) - 2,385 Information Technology (Parking) - 920 Information Technology (Solid Waste) - 4,535 Information Technology (Storm Drainage) - 2,713 Information Technology (Wastewater) - 2,149 Information Technology (Water) - 7,202 Public Works (4th R) - 59 Public Works (Cal EPA) - 557,000 Public Works (Community Center) - 141 Public Works (Fleet Management) - 3,182 Public Works (Gas Tax) - 343,185 Public Works (Lighting and Landscaping) - 500,000 Public Works (Marina) - (74,943) Public Works (Parking) - (876,126) Public Works (Recycling and Solid Waste) 1.00 324,169 Public Works (Risk) - 5,440 Public Works (Storm Drainage) - 39,383 Public Works (Wastewater) - 37,310 Public Works (Water) - 39,880 Utilities (Recycling and Solid Waste) - 37 Utilities (Storm Drainage) 8.00 (39,978) Utilities (Storm Drainage Property Fee) - 207,362 Utilities (Wastewater) - (2,729) Utilities (Water) - (142,088)
Youth, Parks and Community Enrichment (4th R) 0.75 18,457 Citywide and Community Support (Community Center) - 7,607 Citywide and Community Support (Fleet Management) - 5,617 Citywide and Community Support (Parking) - 4,610 Citywide and Community Support (Recycling and Solid Waste) - 24,977 Citywide and Community Support (Risk) - 115 Citywide and Community Support (Storm Drainage) - 12,241 Citywide and Community Support (Wastewater) - 9,261 Citywide and Community Support (Water) - 29,001

9.75 $1,540,537
Modifications* - Other Funds
* Includes Augmentation and Add/Deletes

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File ID: 2025-00611 5/13/2025 Item 9.

Department
(Fund) FTE Change
Net
Budget
Change
Convention and Cultural Services (Community Center) - $507,129 Human Resources (Workers' Compensation Fund) - (19,666) Information Technology (Community Center) - 2,385
Information Technology (Parking) - 920
Information Technology (Solid Waste) - 4,535
Information Technology (Storm Drainage) - 2,713
Information Technology (Wastewater) - 2,149
Information Technology (Water) - 7,202
Public Works (4th R) - 59
Public Works (Cal EPA) - 557,000
Public Works (Community Center) - 141
Public Works (Fleet Management) - 3,182
Public Works (Gas Tax) - 343,185
Public Works (Lighting and Landscaping) - 500,000
Public Works (Marina) - (74,943)
Public Works (Parking) - (876,126)
Public Works (Recycling and Solid Waste) 1.00 324,169 Public Works (Risk) - 5,440
Public Works (Storm Drainage) - 39,383
Public Works (Wastewater) - 37,310
Public Works (Water) - 39,880
Utilities (Recycling and Solid Waste) - 37
Utilities (Storm Drainage) 8.00 (39,978)
Utilities (Storm Drainage Property Fee) - 207,362
Utilities (Wastewater) - (2,729)
Utilities (Water) - (142,088)
Youth, Parks and Community Enrichment (4th R) 0.75 18,457 Citywide and Community Support (Community Center) - 7,607 Citywide and Community Support (Fleet Management) - 5,617 Citywide and Community Support (Parking) - 4,610
Citywide and Community Support (Recycling and Solid Waste) - 24,977 Citywide and Community Support (Risk) - 115
Citywide and Community Support (Storm Drainage) - 12,241 Citywide and Community Support (Wastewater) - 9,261
Citywide and Community Support (Water) - 29,001

9.75 $1,540,537
Modifications* - Other Funds
* Includes Augmentation and Add/Deletes

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9.75 $1,540,537
Modifications* - Other Funds
* Includes Augmentation and Add/Deletes
Additional information for all reductions modifications can be found in the Budget (Attachment 2).

Revenue Overview
The Budget includes modest citywide revenue growth. Property taxes continue to show strength amid sustained increases in residential values. However, sales tax revenue growth is minimal with a slight increase in the coming fiscal year. More substantial revenue growth is projected for department revenues, which are comprised of various fees and charges for City services. Many department revenues have increased as departments pursue new revenue opportunities and align fees with higher operating costs.

Property Tax reflects a 2.8% increase in FY2025/26 and an average increase of 2.7% thereafter.

Sales Tax and Measure U Sales Tax revenues are projected to grow, but at a much slower rate.

Sales and Use Tax growth ranges from 0.4% in FY2025/26 to 3.2% in FY2027/28. Measure U Transaction and Use Tax changes range from 0.6% in FY2025/26 to 3.3% in FY2027/28. The Utility Users Tax (UUT) has a decrease of 3.8% in FY2025/26 and increases 0.5% year over year. Many of the department revenues from programs and services have increased as departments pursue new revenue opportunities and increase fees associated with higher operating costs. Other revenues range from 7.5% in FY2025/26 to 1.0% in FY2029/30.

The following table highlights the forecast for the top three General Fund revenue sources representing 67% of all general revenues.

Capital Improvement Program Overview
The Proposed 2025-30 CIP totals $2.3 billion in capital needs with $0.5 billion in identified funding leaving an unfunded balance of $1.8 billion. Funded projects in the CIP total $522.6 million, including $73.4 million in General Funds. The FY2025/26 CIP budget totals $137.3 million, including $15.1 million in General Funds. Additional projects and maintenance beyond the 5-year CIP are estimated to bring the total unfunded capital needs to approximately $9.8 billion.

A summary of the modifications included in the CIP is provided below, and additional information can be found in the 2025-2030 Proposed CIP (Attachment 3).

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Policy Updates
The recommended policy updates detailed below are included in the FY2025/26 Budget Resolution (Section 31) of the Budget (Attachment 2).
· The General Fund currently has a $15 million loan from the Risk Fund due to a legal settlement in FY2023/24. To ensure that the Risk Fund is paid back, staff recommends adding Section 4.7 to the FY2025/26 Budget Resolution, which would authorize the City Manager to use portions of year-end budgetary surplus to make loan payments. · Federal Executive Orders have threatened funding for critical City services, which includes public safety programs to hire more police officers and provide training to prevent and respond to terrorist attacks and other threats. In response, the Budget redirects $4.2 million of the FY2025/26 Economic Uncertainty Reserve (EUR) contribution into a new fund to mitigate the impact of delays or withholdings of federal funds. The EUR balance is estimated to be $76.4 million on July 1, 2025, which is approximately 9.1% of budgeted FY2025/26 General Fund revenues and below the target by $7.7 million. Staff recommends adding Section 5.3 to the FY2025/26 Budget Resolution, which would authorize the City Manager to appropriate $4.2 million to a Federal Funding Reserve and maintain an EUR reserve below the minimum threshold prescribed in the Council-adopted EUR Policy. · Section 11.10 (E) refers to the wrong City Code section. Staff recommends modifying Section

11.10 (E) by replacing the incorrect City Code “3.56.290” with the correct City Code “3.04.020.”
· On June 14, 2022, Council approved the program goals and spending plan for the Workforce Development Framework (I02180900), which outlined a $5 million workforce development plan for young people between ages 18 and 25 (Resolution No. 2022-0169). The Office of Innovation and Economic Development and the Convention and Cultural Services Department

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would like to expand the program’s priority population criteria by including all ages. Staff recommends adding Section 13.14 to the FY2025/26 Budget Resolution to include all ages under the priority population criteria.
· As part of the FY2024/25 Approved Budget, the Youth Sports Field Permit Program (I19143000) was renamed as the Youth Program Scholarship Fund (I19143000), and the scope and purpose of the project was changed to focus on expanding eligibility to youth- serving facilities and programs. In Section 18.16, any unspent appropriations in the project as of June 30 would be committed to the Measure U Park Improvements Program (L19706000).

On February 25, 2025, Council approved to have Section 18.16 rescinded to allow the funds to remain the Youth Program Scholarship Fund (Resolution No. 2025-0050). However, the staff recommends adding the flexibility to commit portions of the annual unspent appropriations to the Measure U Park Improvements Program if the Youth Program Scholarship Fund has sufficient funding to complete the program scope as intended by Council. Staff recommends adding Section 18.16 back to the Budget Resolution with a change to allow the City Manager to transfer “a portion of the unspent” appropriations to the Measure U Park Improvements Program instead of “any unspent” appropriations. · On February 25, 2025, Council authorized the City Manager or the City Manager’s designee to make all necessary budgetary and accounting adjustments related to the Zero-Dollar Rate Program (I21002600, Fund 2401) to the various impact fees affected by the Reduced Residential Development Impact Fees for Affordable Dwelling Units Program (Resolution No. 2025-0050). Staff recommends adding Section 18.17 to the FY2025/26 Budget Resolution to ensure continuous authority.

Supplemental Budget Information
Any request for budgetary and/or programmatic information related to the budget process is put in a Supplemental Budget Information (SBI) log. As departments complete requests, an updated SBI log along with the requested information is provided to Council. Attachment 6 includes an up-to-date SBI log along with any completed requests.

Budget Hearings
The Council will consider the Budget during regularly scheduled meetings in May and June, with final budget adoption scheduled for June 10, 2025. The tentative hearing schedule is reflected below:

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Policy Considerations: The Budget maintains the direction provided by Council and prioritizes maintaining core City services and advancing Council priorities while closing the budget gap in FY2025/26. The Budget includes continued resources for Council priorities related to inclusive economic development, youth, public safety, transportation safety, homelessness and essential core services. The strategic approach to include specific revenue enhancements and expenditure reductions instead of simply pursuing across-the-board cuts minimizes program and service impacts to the community to the extent possible.

Economic Impacts: Not applicable.

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Environmental Considerations: California Environmental Quality Act (CEQA): This report concerns administrative activities and government fiscal activities that do not constitute a “project” as defined by the CEQA Guidelines sections 15378 and California Public Resources Code section 21080 and are not subject to the provisions of CEQA (CEQA Guidelines section 15060(c)(3)). CEQA review for any project, which utilizes funds allocated under the FY2025/26 CIP Budget, has been or will be performed in conjunction with planning, design, and approval of each specific project as appropriate.

Sustainability: None.

Commission/Committee Action:

Budget and Audit Commission
: The Budget and Audit Committee will review the Budget and any other budgetary changes from previous Council meetings on June 3, 2025.

Planning and Design Commission
: Sacramento City Code Section 17.912.010 requires the
Planning and Design Commission to review the City’s five-year CIP for consistency with the City’s General Plan and to report its findings to the City Council. The 2025-2030 Proposed CIP was presented to the Commission on May 22, 2025, and the Commission’s determination will be provided to Council during the budget hearings. The General Plan Consistency Memo will be included in the Adopted Budget staff report.

Measure U Commission
: The Budget and CIP will be presented to the Commission on May 19, 2025.

Rationale for Recommendation: The actions recommended in this report address the structural budget gap by making strategic revenue enhancements and expenditure reductions in FY2025/26 and future fiscal years.

Financial Considerations: The City’s Budget is balanced and reflects adopted Council policies, goals, and planning/programming guides. The following five-year forecast provides a multi-year view of revenues and expenditures, allowing an assessment of the fiscal consequences of both prior and current funding decisions in the context of forecasted revenues and expenditures. While the recommended reduction strategies help close the funding gap in FY2025/26, these efforts do not completely fill the gaps in future fiscal years. The current five-year forecast is presented below.

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Additional challenges in the General Fund forecast are detailed below:
· California Public Employees’ Retirement System (CalPERS) unfunded liability costs will increase by $25.7 million (26.9%) over the next four years. · Liability insurance premiums are estimated to increase by $32.7 million (69%) over the next four years.
· Uncertainty with future labor costs. Ten of the eleven labor contracts will end before the close of FY2025/26 with one labor contract already expired. The forecast does not include future increases for COLAs or health insurance.
· Approximately $1.8 billion in unfunded capital needs between 2025 and 2030 are not included in the forecast. Unfunded capital needs consist of the maintenance and repairs of existing City facilities and assets and the purchase of new assets required to maintain a consistent level of service to City residents.
· Homeless services will cost approximately $195 million over the next four years and future State funding may not be allocated to the City as the Governor did not include an additional

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State funding may not be allocated to the City as the Governor did not include an additional round of HHAP program funding in his January Budget proposal.

With the exception of future labor contract increases and unfunded capital needs, estimates for the above challenges have been included in the forecast as presented.

Enterprise and Other Funds
: The City’s Enterprise and other funds are included in the Budget. Five- year forecasts for each of the enterprise funds are available in the Forecast section of the Budget (Attachment 2).

Local Business Enterprise (LBE): Not applicable.

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City of Sacramento
PROPOSED BUDGET | FISCAL YEAR 2025/26
Finance Department
CityofSacramento.org
PROPOSED BUDGET | FISCAL YEAR 2025/26 | CITY OF SACRAMENTO

CITY OF SACRAMENTO FACTS
• The City of Sacramento was founded in 1849 and is the oldest incorporated city in California.
• In 1920, city voters adopted a Charter (municipal constitution) and a City Council/City Manager form of government.
• The City is divided into eight districts.
• Elected members of the City Council serve a four-year term. • The Mayor is elected by all voters in the City. In 2002, voters approved a measure for the Mayor to serve full-time. All other Councilmembers are elected by district and serve part-time. • The Mayor and other Councilmembers have an equal vote in all matters.
• The City of Sacramento currently encompasses approximately 100 square miles.
• The City of Sacramento population is estimated at 520,407.

KEVIN MCCARTY
Mayor

LISA KAPLAN
Councilmember, District 1

ROGER DICKINSON
Councilmember, District 2

KARINA TALAMANTES
Vice Mayor, District 3

PHIL PLUCKEBAUM
Councilmember, District 4

CAITY MAPLE
Councilmember, District 5

ERIC GUERRA
Mayor Pro Tem, District 6

RICK JENNINGS, II
Councilmember, District 7

MAI VANG
Councilmember, District 8

PROPOSED

CITY OF SACRAMENTO
FISCAL YEAR 2025/26 BUDGET

KEVIN MCCARTY
Mayor

LISA KAPLAN CAITY MAPLE
Councilmember, District 1 Councilmember, District 5
ROGE

R DICKINSON ERIC GUERRA
Councilmember, District 2 Mayor Pro Tem, District 6
KAR

INA TALAMANTES RICK JENNINGS, II
Vice Mayor, District 3 Councilmember, District 7
PHI

L PLUCKEBAUM MAI VANG
Councilmember, District 4 Councilmember, District 8

LEYNE MILSTEIN
Interim City Manager

MICHAEL JASSO MARIO LARA LEYNE MILSTEIN Assistant City Manager Assistant City Manager Assistant City Manager

RYAN MOORE
Assistant City Manager
Pr
epared by

DEPARTMENT OF FINANCE
BUDGET, POLICY and STRATEGIC PLANNING DIVISION
Pet
er Coletto Mirthala Santizo
Jason Bader Nora Howard Brian Martin
Leila Menor Elizabeth Ramos Michael Tamayo Cham Tu In con
junction with Department Staff
CI

TY HALL
915 I STREET, 5 TH FLOOR
SACRAMENTO, CA 95814

3 4
FY2025/26 Proposed Budget
Table of Contents
SECTION – 1
Budget Message………………………………………………………………………. 9
Operating Budget Excellence Award……………………………………………….. 15 SECTION – 2
City at a Glance ………………………………………………………………………. 17
Sacramento at a Glance…..……………………………………………………... 19
History of the City of Sacramento……………….………………………….... 19 Demographics.………………………………………………………………..... 20
Community Profile……………………………………………………………... 21
Capital Asset Statistics………………………………………………………... 21
SECTION – 3
Budget Overview……………………………………………………………………… 23
Proposed Budget Overview……………………………………………………… 25
Budget Modifications.………….……………………..………………………... 29
2025-2030 CIP.……………………………………...………………………..... 33
Budget Hearings…..…………………………………..………………………... 33
On the Horizon – Future Fiscal Challenges….……………………….……... 34 General Fund Revenues: Options and Opportunities…………………….… 36 Conclusion………………………………………………………………………. 36
SECTION – 4
Budget Modifications…………………………………………………………………. 37
Proposed Budget Modifications…..……………...……………………………... 39 SECTION – 5
Understanding the Budget.…………………………………………………………... 73
Budget Information……………………………………………………………............ 75 The Budget Presentation………………………………………………………. 75
The Budget Process………………….………………………………………… 75
Council Priorities………………………………………………………………... 76
Financial Management Policies……………….…………………………….... 77
Performance Measurement.……………………………………………..……. 78
Financial Information……………………………………………………………... 80
5 FY2025/26 Proposed Budget

How to Read This Document……………………………………………………. 84
SECTION – 6
The Forecast…………………………………………………………………………… 89
Proposed Financial Forecast…………………………………………………………. 91
Financial Forecast………………………………………………………………… 91
General and Measure U Funds Overview……………………………………… 91
General Fund Revenues…….………………………………………………....... 94
General and Measure U Fund Expenditures...………………………………… 106 Measure U Programming and Forecast………………………………………... 110 Enterprise Funds………………………………………………………………….. 114
SECTION – 7
Budget Schedules…………………………………………………………………….. 139
SECTION – 8
Mayor and City Council………………………………………………………………. 185
SECTION – 9
City Attorney…………………………………………………………………………… 191
SECTION – 10
City Auditor…………………………………………………………………………….. 199
SECTION – 11
City Clerk………………………………………………………………………………. 205
SECTION – 12
City Manager…………………………………………………………………………... 211
SECTION – 13
City Treasurer…………………………………………………………………………. 221
SECTION – 14
Community Development…………………………………………………………….. 227
SECTION – 15
Community Response…..………..…………………………………………………... 237
SECTION – 16
Convention and Cultural Services……..……………………………………………. 245 SECTION – 17
Finance…….…………………………………………………………………………… 259
6 FY2025/26 Proposed Budget
SECTION – 18
Fire………………...……………………………………………………………………. 269
SECTION – 19
Human Resources…………………………………………………………………….. 279
SECTION – 20
Information Technology…………….………………………………………………… 287
SECTION – 21
Police…………………………………………………………………………………… 299
SECTION – 22
Public Works….……………………………………………………………………….. 313
SECTION – 23
Utilities……………………………………..…………………………………………… 329
SECTION – 24
Youth, Parks, & Community Enrichment…………………………………………… 341 SECTION – 25
Citywide and Community Support…………………………………………………… 355
SECTION – 26
Debt Financing……………...…………………………………………………………. 369
SECTION – 27
Staffing…………………………………………………………………………………. 377
SECTION – 28
Multi-Year Projects……………………………………………………………………. 403
SECTION – 29
Financial Polices………………………………………………………………………. 417
Budget Control Policy…………………………………………………………….. 419
Debt Management Policy………………………………………………………… 421
Debt Management Policy - Disclosure………………………………………….. 443 DSCR and Development Services Fund Management Policy……………….. 449 EMS Revenue Recovery and Fee Waiver Policy……………………………... 453 Fees and Charges Policy………………………………………………………… 459
General/Measure U (G/MU) Fund EUR Policy………………………………… 469 Interfund Loans……………………………………………………………………. 473
7 FY2025/26 Proposed Budget

Investment Policy…………………………………………………………………. 477
Other Post-Employment Benefits (OPEB)……………………………………... 489 Pension Funding………………………………………………………………….. 493
Prior Year Savings Guideline Policy……………………………………………. 497 Risk Management Funding and Reserve Policy………………………………. 499 SCERS Investment Policy……………………………………………………….. 503
SECTION – 30
Resources……….………………………………………………………….…………. 515
SECTION – 31
Resolution……….………………………………………………………………..……. 529

8 FY2025/26 Proposed Budget
1 SE
CTION - 1
Budget Message
9 FY2025/26 Proposed Budget

10 April 30, 2025

Honorable Mayor and City Council
Sacramento, California

Dear Mayor and Members of the City Council:

The City faces significant financial challenges heading into Fiscal Year (FY) 2025/26 as we continue efforts to bring the budget into structural balance amid threats federal funds will be withheld and increasing economic uncertainty. The FY2025/26 Proposed Budget (Budget) addresses the ongoing structural imbalance between revenues and expenditures through a combination of the use of one- time funding, increasing revenues/cost recovery, and ongoing spending reductions while minimizing impacts to core City services and continuing to advance Council priorities.

The Budget includes a balanced $1.65 billion spending plan for City programs and services supporting a workforce of approximately 5,000 employees, closing an estimated $62.2 million funding gap and reflects input provided by Council, City Departments and the public.
$s in millions FY2024/25
Approved
FY2025/26
Proposed Change
All Funds $1,578.5 $1,647.2 $68.7
General Fund $847.3 $847.6 $0.3
Full-Time Equivalent Positions 5,029.7 4,984.8 (44.9)

STRUCTURAL BUDGET DEFICIT
Like many cities across California, the City is grappling with the challenge of expenses that are growing faster than resources. This imbalance, known as a structural budget deficit, is not the result of an economic downturn. Rather, the structural deficit is the result of decisions that the City and voters have made over the past few years along with macroeconomic forces such as inflation. These decisions include expanding into new service areas, increased costs of new labor contracts, increasing staffing levels, and ballot measures redirecting general revenues for specific purposes. In many cases, federal aid to assist local governments mitigate COVID-19 pandemic impacts allowed the City to fund these cost increases, however, the federal funding was one-time while many of the increased costs are ongoing. To bring the City’s budget into structural balance, Leyne Milstein
Interim City Manager
City Hall
915 I Street, Fifth Floor
Sacramento, CA 95814-2604
916-808-5704
11 FY2025/26 Proposed Budget

Council will need to make decisions, which will increase ongoing revenues and decrease ongoing expenses.

The City partially addressed the structural budget deficit during the FY2024/25 budget process closing a $66 million gap with a combination of one- time and ongoing budget balancing strategies. The ongoing strategies reduced projected deficits in future fis cal years while the one-time strategies rolled into the projected FY2025/26 budget gap.

CLOSING THE GAP
The Budget seeks to address the City’s structural deficit by defining core City services and taking a strategic approach to revenue enhancements and expenditure reductions instead of simply pursuing across -the-board cuts. The Budget also complies with the financial policies adopted by Council on February 11, 2025 directing prior year savings to balance projected budget deficits and pay down unfunded liabilities while allowing for strategic one-time investments.

As part of the budget development process, Departments were instructed to submit reduction plans that totaled 15% of their discretionary General Fund use and were given a framework designed to protect core services and Council priorities. Departmental reduction strategies were categorized on a one through four scale based on service impact on residents, with one being a low impact and four resulting in a severe impact.

In addition, staff analyzed “citywide” strategies to identify previously allocated funding for projects or citywide programs that could be redirected for budget balancing. Overall, staff identified 186 one- time and ongoing revenue- enhancement and expenditure -reduction strategies totaling more than $137 million in savings. A description of each strategy is included in the Budget document.

Proposed solutions to close the $62.2 million funding gap include a combination of one- time and ongoing strategies with $34.6 million in ongoing reduction strategies and $35.2 million in one-time solutions. The Budget includes the net elimination of 70.5 vacant full- time equivalent positions and 12.8 filled full-time equivalent positions. Two filled full-time Category
FTE
Change
Net Budget
Change
Revenues 2.00 ($20,519, 704)
1 (52.90) (9,582, 454)
2 (78.90) (12,217, 470)
3 (160.41) (17,693, 659)
4 (196.05) (33,216, 355)
Citywide* - (44,335, 482)
Non-Categorized - (330,000) Total (486.26) ($137,895, 124)
All Strategies - General Fund
* Includes prior year savings of $26.8 million
12 FY2025/26 Proposed Budget

equivalent positions are proposed to move from the Measure U Fund to the Community Center Fund and are not proposed to be eliminated.

A summary of the budget balancing strategies in the Budget is in the table below:

Amount
(millions)
Vacant
FTE
Impact
Filled FTE
Impact
Total FTE
Impact
Projected Budget Deficit ($62.2)

Budget Balancing
HHAP-6 Vs Forecast ($5.4) - - -
Available Prior Year Savings $23.5 - - -
Revenue Enhancement $20.3 2.0 - 2.0
Level 1 Reductions $9.3 (45.9) (6.0) (51.9)
Level 2 Reductions $6.0 (40.6) (8.8) (49.4)
Citywide Strategies $7.4 - - -
Department Augmentations ($1.2) 14.0 - 14.0
Cost Plan, Offset, and Salary
Savings Adjustments $3.7 - - -
Retirement, Insurance, and
Other Budget Adjustments ($0.4)
Budget Balancing Total 63.1 (70.5) (14.8) (85.3)

Net Surplus / (Deficit) $0.96

PENDING FACTORS
The City is facing considerable fiscal challenges as it heads into the new Fiscal Year.

Federal Executive Orders have threatened funding for critical City services – including public safety programs to hire more police officers and provide training to prevent and respond to terrorist attacks and other threats. In response, the Budget is redirecting the FY2025/26 contribution to the Economic Uncertainty Reserve into a new fund to mitigate the impact of delays or withholdings of federal funds.

The City is also closely monitoring the economic situation and potential negative impacts on the City’s budget. On April 2, 2025, the Federal administration announced a reciprocal tariff policy, which has created major volatility in financial markets. Many prominent economists and business leaders are now forecasting a recession, which would result in significant reductions in City revenues. In addition, the cost of supplies to the City may increase significantly. Cost increases from new labor agreements are not included in the City’s budget forecast, and every 1% in salary increase would result in $4.8 million in new General Fund costs. City staff will continue to update expense and revenue forecasts and will inform Council and the public of budgetary impacts. 13 FY2025/26 Proposed Budget

Finally, in addition to the structural deficit, the City must address its long-term liabilities to ensure its fiscal stability. The updated five- year Capital Improvement Plan identifies approximately $1.8 billion of unfunded capital projects and deferred maintenance costs on City-owned properties that, if not addressed, will increase dramatically as buildings and infrastructure continue to age. The City’s unfunded pension liability is approximately $1.5 billion as of the California Public Employees’ Retirem ent System (CalPERS) latest Actuarial Valuation report.

NEXT STEPS
As Council considers the Budget and the continuing structural financial challenges, it will be essential to balance current needs with long-term fiscal health. The ongoing strategies utilized to balance the Budget will help structurally balance the budget and reduce projected deficits in future years. The Budget takes a measured approach with a goal of minimizing service impacts on Sacramentans while addressing Council priorities and ensuring financial sustainability.

While the challenges of balancing the budget are often front and center, it is important to remember that City continues to make meaningful progress via its strategic investments in several critical areas. Despite a reduction in State homelessness funding, the City is maintaining its 1,350 shelter beds and is exploring new strategies to reduce homelessness. The newly established Transportation Safety Team will further efforts to enhance road and pedestrian safety. Streamline Sacramento initiatives are reduc ing barriers to developing new housing and improving the City’s permitting process. The Old Sacramento waterfront is being improved – increasing the desirability of the City’s most popular tourist destination, and the Railyards transformation is continuing with the hospital groundbreaking and the development of the infrastructure for a new soccer stadium. New Library facilities in North and South Sacramento will better serve our community, and the City will soon be allocating the Children’s Fund to programs to serve our youth.

I am honored to serve as Interim City Manager and work with Council as they consider difficult decisions needed to balance the budget. I offer a Budget that is balanced and supports the overall vision articulated by the Council and its work to recognize, advance and uplift all Sacramento neighborhoods and communities. I would like to thank the Council for their ongoing commitment to resolving the City’s structural deficit while preserving the essential services for all Sacramentans.

Respectfully submitted,

LEYNE MILSTEIN
Interim City Manager

14 FY2025/26 Proposed Budget

Operating Budget Excellence Award

The City’s FY2024 /25 Approved Operating Budget received the Operating Budget Excellence Award from the California Society of Municipal Finance Officers (CSMFO).

The award process includes peer reviews of cities’ operating budget s. Peer review methods are employed to maintain standards, improve performance, and provide credibility.

In preparing the FY2025 /26 Budget document, the award criteria were followed and prepared in accordance with generally accepted accounting principles. This document will be submitted to the CSMFO for consideration for the Fiscal Year 2025 /26 Operating Budget Excellence Award.
15 FY2025/26 Proposed Budget

16 FY2025/26 Proposed Budget

2 SECTION - 2
City at a Glance
17 FY2025/26 Proposed Budget

18 FY2025/26 Proposed Budget

Sacramento at a Glance

History of the City of Sacramento
The City of Sacramento was established in 1849 and became the capital for the State of California in 1854. Sacramento also serves as the seat of Sacramento County government. It is the s ixth largest city in California with a population estimated at 520,407.
1 The population of the County of Sacramento is estimated at 1,5 78,938.1 Sacramento encompasses 101 square miles and is in the northern section of California’s Central Valley.

Sacramento is a charter city and operates under a Council-Manager form of government that currently provides for a nine- member elected City Council (Council), including an elected Mayor. There are no other elected City officials. Members of the Council ser ve alternating terms of four years, with Councilmembers representing odd numbered districts up for reelection in 2026 and the Mayor and Councilmembers representing even numbered districts up for reelection in calendar year 2028 All registered voters in the City vote for the Mayor, while Councilmembers are elected by voters in specific districts. The Council appoints the City Manager, City Attorney, City Auditor, City Clerk, and the City Treasurer to carry out its adopted policies.

The City provides a full range of municipal services including police, fire, water, sewer, storm drainage, solid waste, code enforcement, construction and maintenance of parks and streets, planning and development, recreation and cultural activities, community response, and general administration.

The Sacramento City Charter requires that the City Manager submit a proposed budget to the Council at least 60 days prior to the commencement of each fiscal year. Once approved by Council, this annual budget serves as the foundation for the City of Sacramento’s financial planning and control. Budgetary control is maintained at the department level, by fund. Budgetary control for capital improvement projects is maintained at the individual project level.

The following information summarizes the City’s key demographics and community profile.

1 Based on California Department of Finance estimates as of January 1, 202 4. 19 FY2025/26 Proposed Budget

Demographics
The information presented is based on the 2019-
2023 American Community Survey (ACS) 1-Year
Estimates from the United States Census Bureau.

Population by Sex
Percent female persons 50.3%
Percent male persons 49.7%

Race and Origin
Hispanic or Latino (of any
race) 29.9%
White 28.8%
Asian 20.1%
Black or African American 11.3%
Two or more races 7.4%
Native Hawaiian and Other
Pacific Islander 1.7%
Some other race 0.6%
American Indian and Alaska
Native 0.2%

Age Distribution
0-14 years 17.5%
15-24 years 13.8%
25-64 years 53.8%
65 years and over 14.9%
Median age 36.0

Housing Status
Total 218,721
Occupied 202,421
Owner-occupied 109,037
Renter-occupied 93,384

Average Household Size
Owner-occupied unit 2.75
Renter-occupied unit 2.32

Residential Vacancy Rate
Vacant 16,300
Homeowner vacancy rate 0.3%
Rental vacancy rate 7.2%

Home Values
Median value of owner-
occupied units $505,800
Occupied units paying rent 90,746
Median gross rent $1,779

Commuting to Work
Mean travel time to work
in minutes 26.4

Occupation
Management, business,
science, and arts
occupations
120,869
Service occupations 47,451
Sales and office
occupations 50,631
Natural resources,
construction, and
maintenance occupations
19,469
Production, transportation,
and material moving
occupations
26,461

Household Income
Total households 202,421
Median household income $85,928
Mean household income $111,700

Individual Income
Per capita income $43,982
Median earnings for
workers $50,208

Education
Percent high school graduate
or higher 87.5%
Percent bachelor's degree or
higher 34.9%
20 FY2025/26 Proposed Budget
Community Profile
The information presented is based on the City ’s
Annual Comprehensive Financial Report (A CFR)
for the fiscal year ending June 30, 2024.

Principal Employers
State of California 113,610
UC Davis Health System 16,075
Sacramento County 13,611
Kaiser Permanente 11,856
US Government 10,699
Sutter Health 10,129
Dignity Health 7,353
San Juan Unified School
District 5,346
City of Sacramento 5,075
Intel Corporation 4,300
Operating Indicators
Police:

Citizen initiated calls for
service with officer
responses
145,370
Fire
:

Number of incidents 108,665
Number of structure fires 479
Number of construction
inspections/reviews 10,665
Publi
c Works:

Number of traffic
investigations completed 898
Residential garbage
disposed (in tons) 124,650
Youth,
Parks, & Community
Enrichment:

Number of students enrolled in
START 500
Number of students enrolled in
4th R 2,686
Utilit
ies:

Number of water accounts 149,069
Water distributed/pumped
(millions of gallons) 30,724
Number of wastewater
accounts 79,424
Wastewater
distributed/pumped
(millions of gallons)
5,854
Number of storm drainage
accounts 151,894
Storm drainage
distributed/pumped
(millions of gallons)
19,821
Comm
unity Development:

Number of building permits
issued 20,201
Building permit valuation (in
millions of dollars) $1,110
Number of animal licenses
issued 18,016
Number of animal
outplacements 7,318
Conve
ntion & Cultural Services:

Number of Community
Convention Center events 380
Community Convention
Center event attendance 877,152
Number of Zoo attendance 484,733
Capital Asset Statistics
Police:

Number of stations 4
Number of patrol units 278
Number of aircraft 5
Number of watercraft 4
Fire:

Number of stations 24
21 FY2025/26 Proposed Budget

Number of fire suppression,
support, or prevention vehicles 140
Number of watercraft 5

Public Works:

Miles of streets 3,118
Number of streetlights 40.084
Number of City public parking
spaces 5,635
Number of City leased
parking spaces 2,298
Number of City garages and
open parking lots 14
Number of City leased
garages and open parking
lots
7 Miles of off-street bikeways 85

Youth, Parks, & Community
Enrichment:

Number of parks 235
Park acreage 4,358
Number of community centers 14
Number of swimming pools
(including wading pools) 28

Utilities:

Miles of water mains and
distribution lines 1,644
Miles of sanitary sewers and
storm drainage 1,985

Miscellaneous:

Number of boat harbor
slips 475
Number of Golf Courses 6

22 FY2025/26 Proposed Budget
3 SE
CTION - 3
Budget Overview
23 FY2025/26 Proposed Budget
24 FY2025/26 Proposed Budget
Proposed Budget Overview
Introduction
The City continues to fac e significant financial challenges as it works to resolve a n ongoing imbalance between City operating costs and available resources, which is known as a structural deficit . The FY2025 /26 Proposed Operating and Capital Improvement Program (CIP) Budget (Budget) continues to address the structural deficit while maintaining core City services and advancing Council priorities.

The Budget is balanced and closes a $62 .2 million funding gap. The Budget total s approximately $1.65 billion from all funding sources and support s 4,984.83 full- time equivalent (FTE) positions. This includes $847 million for General Fund operations and capital projects, and $800 million for the City’s enterprise and other fund activities.

The Budget co ntinues to invest in community needs and preserve mandated and core services.

Structural Deficit
In February, the City released its updated financial forecast which projected a $62.2 million budget deficit for FY2025 /26 with deficits increasing annually throughout the forecast period. The forecast assumed continued economic growth and revealed a fundamental imbalance in the City’s budget with expenses outpacing revenues. This imbalance is known as a structural deficit.

The structural deficit is the result of decisions that the City and voters have made over the past few years along with macroeconomic forces such as inflation. These decisions include expanding into new service areas, increased costs of new labor contracts , increasing staffing levels, and ballot measures redirecting general revenues for specific purposes. Substantial federal aid to assist local governments mitigate COVID- 19 pandemic impacts allowed the City to fund these cost increases, however, the federal funding was one-time while many of the increased costs are ongoing.

In summation, the City is not facing a budget deficit due to a recession or economic downturn, instead the structural budget deficit is due to the City offering more services with a higher cost base which can no longer be sustained with existing revenues. This has resulted in a situation where City expenses are growing faster than City resources.

Closing the Budget Gap
The Budget seeks to address the City’s structural deficit by defining core City services and taking a strategic approach to revenue enhancements and expenditure reductions instead of simply pursuing across -the-board cuts. Reduction strategies included in the Budget aim to minimize program and service impacts to the community to the extent possible. Proposed solutions to close the $62.2 million funding gap include a combination of one-time and ongoing strategies with $34.6 million in ongoing reduction strategies and $35.2 million in one-time solutions. The Budget includes the net elimination of 99.30 full- time equivalent (FTE) positions, which includes
the elimination of 86.50 vacant FTE
positions
, the elimination of 12.80 filled FTE positions, the funding shift of 2.0 filled FTE positions from the Measure U Fund to the Community Center fund and the addition of 25 FY2025/26 Proposed Budget

2.00 FTE positions. More information on the budget balancing process and balancing strategies can be found in Section 4 - Budget Modifications.

State of the Economy
The City’s budget forecast assumes continued economic growth; however, recent events have increased economic uncertainty. On April 2, 2025, the Trump Adminis tration announced a ‘reciprocal tariff’ strategy that has roiled financial markets and has resulted in prominent economists and busines s leaders waring of recession. Reduced revenues from an economic downturn and potential supply cost increases would both have major impacts on the City’s Budget. Staff will continue to closely monitor the economy and update Council and the public of any budget impacts as more information becomes available.

Revenue Outlook
The Budget includes modest citywide revenue growth. Property taxes continue to show strength amid s ustained increas es in residential values, and utility user tax es are projecting growth. However, sales tax revenues continue to struggle and are projected to modestly decline in the coming fiscal year, consistent with the prior fiscal year, before seeing modest growth. More substantial revenue growth is projected for department revenues, which are comprised of v arious fees and charges for City servic es. Many department revenues have increased as departments pur sue new revenue opportunities and align fees with higher operating costs.

The City’s homelessness services are highly reliant on State funding, primarily from the State’s Homeles s Housing, As sistance, and Prevention Grant (HHAP) progr am. The FY2025/26 Budget assumes a $16.1 million HHAP-6 allocation. The $16.1 million allocation for HHAP-6 represents a 40% decrease com pared to the City’s HHAP-5 allocation and the first time the City’s HHAP allocation has decreased year over year.

This decline is primarily due to the City’s decreas e in the number of homeless identified in the point-in-time count. Future rounds of State funding are in question as the Governor did not include additional HHAP funding in his January Budget proposal. Absent futur e rounds of HHA P, the City will need to reduce homelessness spending, r aise additional revenues for homelessness pr ograms, or reduc e other General Fund programs to maintain the current level of homelessness services.

Pending Factors
As the City heads into the new fis cal year, increasing service needs , higher costs and slower revenue growth will continue to c reate challenges. It’s also worth noting that any economic downturn would cause further strain on the City’s budget.

The ongoing solutions used to balance the Budget will begin to address our deficit for the following fisc al year. While one-t ime balancing s trategies allow the City to maintain services for one year, they do not solve the structural nature of the budget deficit.

The City must address its long-t erm liabilities to ensure its fiscal stability. The five-year CIP identifies approx imately $1.8 billion of unfunded capital projects and deferred 26 FY2025/26 Proposed Budget

maintenance costs on City -owned properties that, if not addressed, will increase dramatically as buildings and infrastructure continue to age.

In addition, the California Public Employees’ Retirement System (CalPERS) latest Actuarial Valuation report reflects an unfunded pension liability of $1. 5 billion. The City also has approximately $200 million in unfunded Other Post -Employment Benefits (OPEB) that primarily consists of retiree health care obligations.

Over the coming months, the City will be negotiating new contracts with most of its labor units. The City’s forecast does not include cost increases associated with new labor agreements as those costs are unknown, however, every 1% salary increase citywide will increase General Fund costs by approximately $4.8 million.

Finally, the City relies on federal funding for critical public safety, infrastructure, economic development, and other programs. The Trump Administration has issued numerous Executive Orders threatening to withhold existing funding and not issue future funding to sanctuary jurisdictions. If federal funding is withheld or rescinded, the City will need to eliminate those programs or find a substitute funding source.

27 FY2025/26 Proposed Budget
Total Proposed City Budget: $1.65 Billion
Revenu
es
Expendi
tures
Not
e: The above charts do not include other sources and uses as represented in Schedules 2A and 2B. 28 FY2025/26 Proposed Budget
In additi
on to budget balancing strategies, the Budget also includes other Citywide revenue adjustments, various expense adjustments and department augmentations that factor into closing the $62.2 million gap. See detailed table below.

Category
FTE
Change
Net Budget
Change
Revenues 2.00 ($20,519,704)
1 (52.90) (9,582,454)
2 (78.90) (12,217,470)
3 (160.41) (17,693,659)
4 (196.05) (33,216,355)
Citywide* - (44,335,482)
Non-Categorized - (330,000)
Total (486.26) ($137,895,124)
Budget Modifications
The Budget seeks to address the City’s structural deficit by defining core City services and taking a strategic approach to revenue enhancements and expenditure reductions instead of simply pursuing across-the-board cuts.

Departments were instructed to submit reduction strategies that totaled 15% of their discretionary General Fund (which includes Measure U Fund, Innovation Growth Fund, and American Rescue Plan Act Fund). Departmental reduction strategies were categorized on a one through four scale based on impact to residents and communities, with one being a low impact and four being resulting in a severe impact. Appointed officers (City Attorney, City Auditor, City Clerk, City Treasurer, and Office of Public Safety Accountability) determined the level of impact for their strategies.

In addition to department specific strategies, staff analyzed “citywide” strategies to identify previously allocated funding for projects or citywide programs that could be redirected for budget balancing. Overall, staff identified 186 one-time and ongoing revenue- enhancement and expenditure-r eduction strategies totaling about $137.9 million in s
avings.

All Strategies - General Fund
* Includes prior year savings of $26.8 million
29 FY2025/26 Proposed Budget

Of the $137.9 million, the Budget includes $69.9 million in reduction strategies, with a net reduction of 99.30 FTEs.

The Budget also includes $1.3 million in increases and strategic reductions to other funds that were directly tied to the proposed reduction strategies. This included swapping General Fund for other funds and Citywide strategies that not only reduced the impact to General Fund, but also to the other funds.

Amount
(in Millions) Filled FTE Vacant FTE
Projected FY2025/26 Surplus/(Deficit) ($62.2)
HHAP 6 Difference (5.4)
Available Prior Year Savings* 23.5
Department Revenue Enhancement Strategies** 20.3 2.00
Level 1 Reduction Strategies*** 9.3 (6. 00) (45.90)
Level 2 Reduction Strategies 6.0 (8. 80) (40.60)
Citywide Reduction Strategies 7.4
Department Augmentations (1.2) 13.98
Cost Plan, Offset, and Salary Savings Adjustments 3.7
Retirement, Insurance, and Other Budget Adjustments (0.4) FY2025/26 Proposed Budget Surplus/(Deficit) $0.96 ( 14. 80) (70.52) ** Additional FTEs are required to increase revenues.
* $23.5M FY2023/24 ending balance approved by Council on February 25, 2025 (Resolution No. 2025-0050). *** Two filled full-time equi valent positions are proposed to m ovefrom the Measure U Fund to the Community Center Fund and are not proposed to be eliminated.

Category
FTE
Change
Net Budget
Change
Revenues 2.00 ($20, 319,704)
1 (51.90) (9, 312,261)
2 (49.40) (6, 017,850)
3 - -
4 - -
Citywide* - (34, 254,782)
Total (99.30) ($69, 904,597)
Proposed Strategies - General Fund
* Includes prior year savings of $26.8m illion and $3.5 million from ARPA fund balance.
30 FY2025/26 Proposed Budget
Finally
, the Budget includes $1.5 million in modifications to other funds for augmentations and position add/deletes. There is an increase of 9.75 FTEs.

Category
FTE
Change
Net Budget
Change
Revenues - $0
1 - 1,272,103
2 - -
3 - -
4 - -
Citywide - (4,101)
Total - $1,268,002
Proposed Strategies - Other Funds
Department
FTE
Change
Net Budget
Change
City Auditor - -
City Manager - ($1,450)
Community Development - 703
Community Response - 46,718
Finance - 4,839
Fire 6.00 $198,576
Human Resources - -
Information Technology - 55,096
Mayor/Council (Mayor) - -
Mayor/Council (Office of Public Safety
Accountability
- -
Public Works 8.00 704,301
Utilities - (49,278)
Youth, Parks, and Community Enrichment (0.02) (141,384) Citywide and Community Support - 412,571
Total 13.98 $1,230,692
There were $1.2 million in modifications to General Fund and Innovation and Growth Fund (IGF) for augmentations and position add/deletes. This also included an addition of 13.98 FTEs.

M
odifications* - General Fund
* Includes Augmentation and Add/Deletes
31 FY2025/26 Proposed Budget

9.75 $1,540,537
Modifications* - Other Funds
* Includes Augmentation and Add/Deletes
32 FY2025/26 Proposed Budget
2025-2030 CIP
The Proposed 2025- 2030 CIP is the City’s five -year financial and strategic plan for infrastructure, deferred maintenance and facility needs. The CIP also identifies all capital needs, including projects that currently do not have identified funding or are not yet fully funded. The addition of unfunded capital needs gives Council a clearer picture of the status of the City’s infrastructure and fiscal health, allows Council to prioritize infrastructure investments more holistic al
ly, and aids in the development of a
comprehensive capital financing plan.

The Proposed 2025-30 CIP totals $2.3 billion in capital needs with $0.5 billion in identified funding leaving an unfunded balance of $1.8 billion. Funded projects in the CIP total $522.6 million, including $73.4 million in General Funds. The FY2025/ 26 CIP budget totals $137.3 million, including $15.1 million in General Funds. Additional projects and maintenance
beyond the 5-year CIP are estim ated to bring the total unfunded capital needs to approximately $9.8 billion.

A summary of program and service changes included in the CIP is provided below.

Citywide projects identified as budget reductions are the Community Neighborhood Improvements Program, Alhambra Navigation Center Project, Parking Facilities Development Program, and the Comprehensive Sitting Plan Location Buildout Project.

Community Development i ncreased revenues in the Code Enforcement Division by establishing a Code Technology Fee and Capital Improvement Project . The Information Technology department submitted a one-time budget adjustment to implement a training and development plan to enhance support to the City’s technical environment and critical business systems. P
ublic Works increased the Facility Reinvestments Program, adjusted several Solid Waste projects with commercial waste compliance revenues and is also receiving one-time funding to upgrade various fleet shops. Additional details are provided in the department sections.

Budget Hearings
On May 13, 2025, the Council will hold the first public hearing on the Budget. Council will consider the budget in May and June with adoption scheduled for June 10 , 2025. These meetings provide the Council and public with an opportunity to provide input on the Department
(Fund) FTE Change NET Budget Change
Citywide and Community Support (Various*) - (191,906)
C
ommunity Development (General) - 88,600
Information Technology (General) - (200,000)
Public Works (Various*) - 1,806,000
$1,502,694
* Various Funds include 4th R Program, ARPA Reinvestment, Cal EPA, Community Center, General Fund, Marina, Measure U, Parking, Recycling and Solid Waste, Risk Management, Storm Drainage, Wastewater, and Water.

Capital Improvement Program
33 FY2025/26 Proposed Budget
Budget. The following reflects the planned budget hearing schedule. It is important to note that meeting dates may change as needed to address other City business.

On the Horizon – Future Fiscal Challenges
Aside from the forecasted deficits, the City continues to face ongoing challenges such as increasing labor costs and liabilities that compete with the priorities and needs of our community. The following summarizes a few of the challenges ahead, which not only impacts the General Fund but the Enterprise Funds as well.

Rising Labor Costs
In FY2025/26, 10 of the 11 contracts of the City’s eleven recognized employee organizations (REOs) will expire between July 11, 2025, and January 9, 2026. The Sacramento Police Officers Association (SPOA) already expired on January 24, 2025, and the City is currently in negotiations with SPOA. Future labor cost increases resulting from negotiations are not included as part of the five-year forecast.

Current National Economic Conditions
The economic climate is more uncertain than a year ago, with major changes in trade policy resulting in an increased risk of a coming recession. Since the announcement of a reciprocal tariff policy on April, 2, 2025, equities, commodities, and the dollar have fallen while yields on U.S. Treasuries (which typically would decline in a similar situation) have remained elevated. This is a concerning situation, and the City must continue to monitor this volatile economic climate.

Annual
Pension Costs–CalPERS
CalPERS employer retirement contribution rates have increased significantly over the past few FYs due to lowered expectations for future investment returns (discount rate).

Date T ime Legislative Body Subject
May 13, 2025 5:00 PM City Council
(1) FY2025/26 Proposed Budget Overview and
(2) Assistant City Manager presentations (Community
Services, Internal Services, Municipal Services and Public Safety
)
May 19, 2025 5:30 PM Measure U Community Advisory
Commission
FY2025/26 Proposed Budget Overview with Measure U
Committee
May 20, 2025 2:00 PM City Council
(1) 2025-2030 Capital Improvement Program,
(2) Citywide Fees and Charges (Public Hearing)
(3) Budget Equity Lens
(4) AB
2561 Report: Status of Vacancies and Recruitment
and Retention efforts
May 20, 2025 5:00 PM City Council FY2025/26 Proposed budget deliberations and Council direction
May 27, 2025 5:00 PM City Council Additi onal budget deliberations (if needed) June 3, 2025 11:00 AM Budget and Audit Committee FY2025/26 F inal Budget discussion June 10, 2025 5:00 PM City Council Adoption of the FY2025/26 Final Budget (Public Hearing) 34 FY2025/26 Proposed Budget

Based on estimates provided by CalPERS, the City’s payment for unfunded accrued liabilities (UAL) (when investment returns do not achieve the target earning assumptions rate) will increase by $34.9 million over the term of the forecast, $30.2 million in the General Fund. The total UAL for the Safety and Miscellaneous CalPERS plans is $1. 5 billion. The current funding ratio (assets divided by the funding target) is 70. 3% for the Miscellaneous Plan and 64.7% for the Safety Plan. In July 2024, CalPERS announced a preliminary 9.3% net return on investments for the 12-month period ending June 30, 2024.

Should future investment returns not achieve the earning assumptions rate of 6.8%, the City’s payments toward the unfunded liability will further increase.

General Liability and Auto Liability Insurance (GL&AL)
Liability costs continue to rise with higher settlements and jury verdicts. Claims that were previously resolved in the $5 to $10 million range are now costing $20 to $30 million.

Public entities, including the City, have seen a dramatic increase in large liability claims since 2012. This has resulted in the excess liability insurance market for public entities tightening nationwide. Insurers are leaving the marketplace and further restricting capacity, leading to increases in insurance premiums for the foreseeable future.

Additionally, property insurance costs have been increasing since 2017 due to an increase in the number and cost of natural disasters and the increase in construction costs. The recent fires in Los Angeles will also result in property insurance premium increases. Workers’ compensation claims will also continue to see increasing costs due to medical inflation, an aging workforce, and mental health exposures.

Consistent with the Council’s adopted Risk Management Funding and Reserve Policy, the General Fund contribution to the GL&AL Fund increased from $37.9 million in FY2024/25 to $42.5 million in FY2025/26, a 12% increase. The Forecast section of the Budget provides additional information on GL&AL cost increases. The General Fund contribution to the Workers’ Compensation Fund increased from $14.5 million in FY2024/25 to $17.3 million in FY2025/26, a 19% increase.

OPEB
The City currently provides a medical insurance subsidy to retirees who meet certain longevity standards, on a pay as you go basis. This benefit was eliminated for all new hires between 2012 and 2014, except for Local 522 which eliminated the benefit in January 2020.

Several years ago, the Governmental Accounting Standards Board (GASB) set new standards (GASB Statement 45, subsequently updated by GASB Statement 75) that require reporting of the cost of the retiree medical benefit on an accrued actuarial basis and to put forward a plan to fund the benefit. At one point, the City’s projected unfunded accrued liability for retiree benefits was $452 million (June 2014). To address this liability, the City began including contributions to the City’s OPEB Trust (Trust) in the FY2014/15 budget. In FY2015/16 the City adopted the OPEB Funding Policy. This policy directed staff to continue efforts to reduce and eventually eliminate this liability. Council also authorized the transfer of any available resources in the pension budget accounts at the end of the fiscal year to the Trust. The total OPEB liability for all funds was approximately $206 million as of June 30, 2023.
35 FY2025/26 Proposed Budget

General Fund Revenues: Options and Opportunities
The following are budget sustainability measures for Council’s consideration to ensure that the City’s financial position is sustainable over the long-term:
• Support state legislative efforts to maximize revenues for local government:

The City will continue to oppose legislation that calls for additional unfunded mandates on local governments. Further, the City will support legislation that increases and protects state- shared revenue, expands local opportunities for public-private partnerships, and collection of revenue from non-traditional vendors in the areas of transient occupancy taxes for online travel companies and UUT for streaming services. The City will also advocate for a solution to collect parking meter revenue lost due to ongoing abuse, while also ensuring access for those with disabilities.
• Update Fees and Charges: Many of the City departments’ fees and charges have not been updated to keep up with the actual cost of providing programs and services. Although the City conducts a biennial CPI increase, many departments have not reviewed their fees to ensure that there is a full cost recovery. Not only does this partially contribute to City’s deficit, but it also decreases the City’s ability to provide and/or expand programs and services.

The City hired a consultant to conduct a two-year citywide fee study that started in April 2025 with the goal of updating existing fees, deleting obsolete fees, and adding new fees. The consultant will work with the following departments in the first year: Community Development Department, City Attorney’s Office, City Clerk, Finance, Human Resources, and Police. The following departments will conduct the fee study in the second year: Youth, Parks, & Community Enrichment , Public Works and Convention & Cultural Services.
• Update Business Operation Tax (BOT) (requires voter approval) : BOT rates have not been adjusted since 1991. During the FY 2023/24 budget process, Council directed staff to explore options to modernize the BOT. Staff returned with a proposal to modernize the BOT and on November 14, 2023, Council adopted Ordinance 2023- 0023 to conduct the proposed updates , which wa s subject to approval of the voters. Measure C was added to the Statewide Municipal Election, held on March 5, 2024, and 61% of the voters voted against the measure.

Council has directed staff to revisit the options to modernize BOT. Staff will work with Council to provide options in the upcoming months.

Conclusion
As the City continues to overcome deficits in FY2025 /26 and future fiscal years , preserving mandated and core services remains a priority. The City will continue to utilize strategies to reduce expenditures and increase revenues to ensure that the Budget is balanced. Maximizing revenue opportunities will provide some relief and help leverage limited resources for operational needs and community programming investments. 36 FY2025/26 Proposed Budget
4 SE
CTION - 4
Budget Modifications
37 FY2025/26 Proposed Budget
38 FY2025/26 Proposed Budget
Budget Modifications – Proposed
In February 2025 , the City released its updated General Fund financial forecast, which projected a $62.2 million deficit for FY2025 /26. The City budget continues to be in structural deficit as expense growth is outpacing revenues resulting in deficits increasing annually throughout the forecast period.

Department Reduction Process
To address the structural imbalance currently projected in the General Fund for FY2025/26, departments were instructed to submit reduction strategies that totaled 15% of their discr etionary General Fund (which includes the Measure U Fund, Innovation Growth Fund [IGF], and American Rescue Plan Act [ARPA] Fund). Proposed strategies should have ongoing savings and be categorized in one of the reduction types: (1) Revenue Enhancement or Discretionary Program Reduction, (2) Mandated Program Deliver y Change and (3) Mandated Progr am Reduction.

Reduction Type
Revenue Enhancement Increase projected department revenues with no corresponding increase in the department
expenditure budget.

Discretionary Program Reduction Decrease spending on programs that are not core City services.

Mandated Program Delivery
Change
Decrease spending on programs that are core
City services while maintaining the same level of
service. (example: contracting out services)
Mandated Program Reduction Decrease spending on programs that are core City services by reducing service levels.

A combination of 158 revenue enhancements and expenditure reductions were submitted by departments. I n addition to the proposed department strategies, there were 28 Citywide reduction strategies totaling $44.3 million (including prior year savings of $26.8 million and $3.5 million from ARPA fund balance). The majority of the Citywide strategies are one-time savings.

Revi
ew Process
Departmental reduction strategies were categorized on a one through four scale based on impact to residents and communities, with one being low impact, two being moderate impact, three being high impact and four being severe impact. Other considerations that were used to determine where a proposal should rank were whether position reductions were filled or vacant and if there was an impact to the Measure L baseline. Citywide strategies and revenue enhancement strategies were not ranked. Appointed officers (City Attorney, City Auditor, City Clerk, City Treasurer, and Office of Public Safety Accountability) determined the level of impact for their strategies. 39 FY2025/26 Proposed Budget
Revenue enhancement proposals were reviewed to ensure that they were in compliance with Propositions 218 and 26. Also, any revenue increase proposals that were related to an expenditure in the Measure L baseline were also reviewed to determine impact.

As shown in the chart below, a total of $13 7.9 million in strategies were reviewed and considered. Of the 186 proposals , 20 were revenue enhancements and 166 were expenditure reductions. There were 486.26 full-time equivalent (FTE) positions included in the reduction proposals of which approximately 51% or 245.95 FTEs are currently filled.

Proposal Type/Category Submittals
Amount
(in
millions)
Vacant
FTEs
Filled
FTEs
Total
FTEs
Revenue Increases 20 $20.5 - - 2.00
Level 1 – Low Impact 47 9.6 (46.90) (6.00) (52.90) Level 2 – Moderate Impact 39 12.2 (69.10) (9.80) (78.90) Level 3 – High Impact 30 17.7 (88.06) (72.35) (160.41) Level 4 – Severe Impact 21 33.2 (38.25) (157.80) (196.05) Citywide Strategies* 28 44.3 - - -
Non-Categorized 1 0.3 - - -
Total 186 $137.9 (242.31) (245.95) (486.26)
* Includes prior year savings of $26.8 million and $3.5 million from ARPA fund balance.

Category
FTE
Change
Net Budget
Change
Revenues 2.00 ($20,319,704)
1 (51.90) (9,312,261)
2 (49.40) (6,017,850)
3 - -
4 - -
Citywide* - (34,254,782)
Total (99.30) ($69,904,597)
Proposed Budget Strategies
The following tables include the details of the General Fund, Measure U, IGF and ARPA Fund revenue enhancements and expenditure reduc tions in the Budget. Of the $69.9 million in reductions, $34.6 m illion are ongoing reductions ( 49.6%) and $35.2 million (50.4%) are one-time reductions.

Proposed Strategies - General Fund
* Includes prior year savings of $26.8million and $3.5 million from ARPA fund balance.
40 FY2025/26 Proposed Budget
Revenue Strategies
Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Community Development Increase revenue budget for Neighborhood Code Compliance (NCC) based on previous one-time revenue
increase and additional estimated revenue.

General Fund (750,000) - -
Community Development Increase revenue budget for the Business Compliance (BC) Tenant Protection Program (TPP) based on previous one-
time revenue increase and additional estimated revenue.

General Fund (350,000) - -
Community Development Increase revenue budget for Code Enforcement Division to align with actuals in Housing and Dangerous Buildings
(HDB), Rental Housing Inspection Program (RHIP),
Neighborhood Code Enforcement, and Business
Compliance.

General Fund (808,978) - -
Community Development Increase revenue budget for the Planning Division and increase fees related to plan check inspection. The reason for the budget and fee increases is to adjust the planning revenue budget based on adjustments to the structure of the fees related to the plan check review and inspection
process.

General Fund (400,000) - -
Community Development Increase revenue for the General Plan Updates Project (I22000000) by increasing the maximum building valuation amount subject to the General Plan Maintenance Fee
which increases the per-permit fee cap from $26,000 to
$38,200. Increase Long Range Planning employee offset by allocating additional time to the General Plan Updates
Project.

Measure U - (100,000) -
Community Development Increase revenue budget for Animal Care license fees/revenue increase. This revenue increase is based on increased fees in FY25 budget development along with
strengthening partnerships with local veterinary hospitals to secure comprehensive rabies vaccination to increase
licensed animals in the city.

General Fund (50,000) 50,000 -
Community Development Increase revenue budget for Animal Care license fees/revenue increase. This revenue increase is based on increased fees in FY25 budget development along with
strengthening partnerships with local veterinary hospitals to secure comprehensive rabies vaccination to increase
licensed animals in the city.

Measure U - (50,000) -
Fire Increase Revenue for Fire District Reimbursement
(Fruitridge/ Pacific and Natomas Fire Districts).

General Fund (350,000) - -
Fire Increase Revenue budget for Fire Prevention Division. General Fund (3,200,000) - - Fire Increase revenue budget for Emergency Medical Services General Fund (2,500,000) - - Fire Increase revenue budget for Inter-Governmental Transport/ Ground Emergency Medical Transport (IGT/GEMT) of the
Emergency Medical Services (EMS) Division.

General Fund (3,000,000) - -
Public Works Increase revenue and expense budgets for parking meter shop to reflect expanded operations (additional days and new metered spaces) and add two positions (1.0 FTE -
Parking Meter Repair Worker and 1.0 FTE - Parking
Facilities Maintenance Supervisor) to address expanded
meter operating days and increased locations.

General Fund (600,000) 403,524 2.00
Public Works Increase revenue budget for parking enforcement to reflect higher anticipated revenues resulting from better hiring and retention strategies for parking enforcement officers and increase parking meter expense budget to replace existing meters with multi-space parking meters to reduce longer term maintenance costs and vandalism.

General Fund (2,500,000) 525,953 -
Public Works Establish fees for Residential Permit Parking program to recover costs.

General Fund (1,088,581) 127,699 -
Public Works Increase revenue and expense budgets for the Parking Fund to reflect higher ongoing growth in parking garage
utilization.

General Fund (355,463) 303,551 -
Public Works Increase revenue and expense budgets for parking enforcement related to Automated Parking Enforcement
Program and for interim out-of-class pay.

General Fund (2,392,395) 495,943 -
Public Works Expand on-street Merchant Parking Permit program to downtown employees to optimize parking use.

General Fund (46,800) 2,730 -
41 FY2025/26 Proposed Budget
Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Public Works Increase parking meter rates to improve turnover of on-street parking inventory.

General Fund (3,517,464) 193,461 -
Youth, Parks, and Community
Enrichment
Increase Daily Program Fee Rate by 5% for Triple R and
Club Refresh Programs in Older Adult Services Division.

This fee increase will bring cost recovery to approximately 80%. Scholarships are available for Triple R Program.

General Fund (40,000) 40,000 -
Youth, Parks, and Community
Enrichment
Increase Daily Program Fee Rate by 5% for Triple R and
Club Refresh Programs in Older Adult Services Division.

This fee increase will bring cost recovery to approximately 80%. Scholarships are available for Triple R Program.

Measure U - (40,000) -
Youth, Parks, and Community
Enrichment
Increase revenue budgets in various divisions within the department due to planned and approved fee increases.

General Fund (322,884) 322,884 -
Youth, Parks, and Community
Enrichment
Increase revenue budgets in various divisions within the department due to planned and approved fee increases.

Measure U - (322,884) -
Total Change $ (22,272,565) 1,952,861 2.00
42 FY2025/26 Proposed Budget

Department Strategies – General Fund/IGF

Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Vacant FTE Filled
Level 1 Reduction
City Manager Delete one position (1.0 FTE - Development Project Manager) in the Office of Innovation and Economic
Development (OIED) - Economic Development unit.

Measure U - (137,281) (1.00) -
City Manager Delete one position (1.0 FTE -Development Project Manager) in the OIED - Community Investment unit.

Measure U - (137,281) (1.00) -
City Manager Delete one position (1.0 FTE - Administrative Analyst) in the OIED - Community Engagement unit.

Measure U - (115,831) (1.00) -
City Manager Decrease Measure U expense budget through offsets related to the Redevelopment Agency Successor Agency (RASA)
Program. Increase revenue/reimbursement for direct
programming efforts/staff labor.

Measure U - (57,679) - -
City Manager Liquidate one-time funding in the following projects: SEED Corp (I18000200), Sac Dev Academy (I02183000) and
Forgivable Loan (I02180400). Return unused dollars to fund balance.

General Fund - (15,614) - -
City Manager Liquidate one-time funding in the following projects: SEED Corp (I18000200), Sac Dev Academy (I02183000) and
Forgivable Loan (I02180400). Return unused dollars to fund balance.

Innovation and
Growth
- (777,756) - -
City Manager Reduce on-going funding in the following multi-year operating project fund via the Innovation and Growth Fund (2031) I02180900, Inclusive Economic Development.

Return unused dollars to fund balance.

Innovation and
Growth
- (162,102) - -
Citywide and Community
Support
Change funding source for the New Year's Eve fireworks from General Fund to the Community Center Fund.

General Fund - (70,000) - -
Citywide and Community
Support
Change funding source for Visit Sacramento for the
continual support of tourism recovery through event support and production from General Fund and Measure U Fund to
the Community Center Fund.

Measure U - (500,000) - -
Community Response Change funding source for two Neighborhood Resource Coordinator (NRC) FTE positions from Measure U fund to the Fire Opioid Settlement Project for the NRC's time on the City's Street Overdose Response Team (SORT).

Measure U - (228,102) - -
Convention and Cultural
Services
Change funding source for eligible costs for visitor-serving facilities from General Fund and Measure U Fund to the
Community Center Fund.

Measure U - (347,044) - (2.00)
Convention and Cultural
Services
Change funding source for History Division administrative support to Old Sacramento from General Fund and Measure U Fund to Community Center Fund.

Measure U - (299,673) - -
Finance Decrease funding for the Cannabis multi-year operating project (MYOP). Contribution to the MYOP will have
minimal impact on cannabis programming.

General Fund - (2,018,300) - -
Fire Delete one position (1.0 FTE - Senior Accountant Auditor) in Fire Fiscal.

General Fund - (121,541) (1.00) -
Fire Delete one position (1.0 FTE - Support Services Manager) and add one position (1.0 FTE - Program Specialist) in the EMS Division to support the expansion of services, including Advanced Life Support (ALS) and Basic Life Support (BLS) deployment, the Street Overdose Response Team,
Telehealth, and Mobile Integrated Health, ensuring
operational efficiency, compliance, and effective resource management.

General Fund - (3,113) 0.00 -
Fire Delete one position (1.0 FTE - Customer Service
Representative) and add one position (1.0 FTE -
Administrative Technician) to enhance event related
activities in the Fire Prevention Division.

General Fund - (4,170) 1.00 (1.00)
Human Resources Delete one position (1.0 FTE - Administrative Analyst) in the HR Administration Division due to reduction in management appointments due to hiring freeze and layoffs.

General Fund - (131,918) - (1.00)
Human Resources Delete two positions (1.0 FTE - Senior Staff Assistant and

1.0 FTE - Personnel Technician) and add one position (1.0 FTE - Personnel Analyst) in HR Benefit Services to align the required duties of administering benefits and reconciling benefit costs and payments with the correct job
classification.

General Fund - (32,002) (1.00) -
Human Resources Delete one position (1.0 FTE - Program Specialist) and add one position (1.0 FTE Administrative Officer) in HR Admin which provides department wide support for contracts, and fiscal reconciliation. This will align the correct job
classification to the work being performed.

General Fund - (870) 1.00 (1.00)
43 FY2025/26 Proposed Budget

Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Vacant FTE Filled
Level 1 Reduction (cont.)
Information Technology Offset two positions (1.0 FTE - Senior Department Support Specialist and 1.0 FTE - Department Support Specialist I) with revenue received from a proposed Technology Fee in the Community Development Department. These positions
are critical for providing applications support for the City’s Code Enforcement System. Without these resources, the
department will experience delays in issue resolution, which can disrupt critical workflows, reduce operational efficiency, and hinder the department’s ability to track enforcement cases.

General Fund - (311,400) - -
Information Technology Offset one position (1.0 FTE - Systems Engineer) with one- time funds using Parking Fund. This position maintains the technical infrastructure that supports the City's parking operations including network connectivity, equipment used at parking facilities, and tools mounted on enforcement vehicles. Without Systems Engineer, the entire Parking
Division’s operations may be at risk for outages and service disruptions which could lead to significant revenue loss.

This position will transition to Cost Plan in FY2026/27 and be fully reimbursable by the Parking Fund.

General Fund - (138,621) - -
Police Eliminate funding for the Youth & Family Investments program.

Measure U - (1,300,000) - -
Police Delete two positions (2.0 FTE - Police Officer) and add one position (1.0 FTE - Police Sergeant) to the Traffic
Enforcement Division to supervise the night-time traffic enforcement team.

General Fund - (70,615) (1.00) -
Police Delete one position (1.0 FTE - Administrative Analyst) and add one position (1.0 FTE - Media Production Specialist II) to the Public Information Office (PIO). This change better suits the PIO's functions and activities.

General Fund - (22,174) - -
Police Offset three positions (3.0 FTE - Community Service Rep I) from Patrol Operations using one-time funds from MYOP
I11003300.

General Fund - (302,860) - -
Public Works Discontinue parking enforcement and maintenance contracts with the City of West Sacramento to focus limited City resources on City needs.

General Fund (252,098) - - -
Youth, Parks, and
Community
Enrichment
Add one position (0.40 FTE - Utility Worker) and decrease funding for service and supplies in the Aquatics Division by absorbing North Natomas Aquatic Complex pool
maintenance duties previously contracted out and reduce the scope of contracted custodial services.

Measure U - (113,824) 0.40 -
Youth, Parks, and
Community
Enrichment
Delete four positions (two 0.80 FTE - Program Coordinator,

0.22 FTE - Recreation Aide, and 0.46 FTE - Recreation
Aide) and add one position (1.0 FTE - Program Coordinator) in the Youth Workforce Development Division. This will
reduce and consolidate Stipend Program staffing.

Measure U - (77,355) (1.28) -
Youth, Parks, and
Community
Discontinue Golf Subsidy. Subsidy is no longer necessary for vendor to continue maintenance services at current levels.

Measure U (250,000) - - -
Youth, Parks, and
Community
Enrichment
Decrease funding for Service and Supply Budget in Older Adults Services by reducing cost of Allied Security Services at Hart Senior Center.

Measure U - (13,815) - -
Youth, Parks, and
Community
Enrichment
Delete one position (1.0 FTE - Staff Assistant) in the Fiscal Management Division. Staff Assistant position no longer needed after administrative team restructure.

Measure U - (75,333) (1.00) -
Youth, Parks, and
Community
Enrichment
Delete one position (1.0 FTE - Senior Accounting
Technician) and add one position (1.0 FTE - Accounting
Technician). Realign administrative team to accommodate internal restructuring.

Measure U - (7,622) - -
Youth, Parks, and
Community
Enrichment
Delete eight positions (two 0.40 FTE - Graduate Student Trainee and six 0.40 FTE - Student Trainee) and add one position (0.40 FTE - Senior Recreation Aide). This reduction will consolidate the Youth Workforce Development Division.

Measure U - (104,324) (2.80) -
44 FY2025/26 Proposed Budget

Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Vacant FTE Filled
Level 1 Reduction (cont.)
Youth, Parks, and
Community
Enrichment
Delete one position (1.0 FTE - Program Specialist) and add one position (1.0 FTE - Park Maintenance Superintendent) in the Parks Maintenance Division to realign position to meet operational needs in City Cemetery Division and Park Operation Division.

Measure U - 1,105 0.00 -
Youth, Parks, and
Community
Enrichment
Delete 12 positions (twelve 0.45 FTE - Utility Worker) in the Park Maintenance Division.

Measure U - (205,884) (5.40) -
Youth, Parks, and
Community
Enrichment
Change funding source for forty-five positions from Measure U Fund to START Fund. Move positions funded in
Expanded Learning Division to START Division. Positions support the Expanded Learning Opportunities Program
(ELOP) expansion of the After School Safety and Education Program operated by the START Division.

Measure U 571,290 (813,075) (20.70) -
Youth, Parks, and
Community
Enrichment
Delete seven positions (0.90 FTE - Program Coordinator and six 0.38 FTE - Recreation Aide) from Expanded Learning
Division.

Measure U - (156,968) (3.18) -
Youth, Parks, and
Community
Enrichment
Delete three positions (two 0.50 FTE - Program Leader and

0.60 FTE - Program Leader) in Expanded Learning Division.

Measure U - (95,340) (0.60) (1.00)
Youth, Parks, and
Community
Enrichment
Delete one position (1.0 FTE - Program Coordinator) Access Leisure Division.

Measure U - (79,901) (1.00) -
Youth, Parks, and
Community
Enrichment
Delete six positions (six 0.15 FTE - Recreation Leader (Adpt Rec)) and add one position (0.47 FTE Recreation Leader
(Adpt Rec)) to realign non-career FTEs to fit program needs in Access Leisure Division.

Measure U - (16,509) (0.43) -
Youth, Parks, and
Community
Enrichment
Delete thirteen positions (ten 0.80 FTE - Program Leader, two 1.0 FTE - Program Leader, 0.30 FTE - Recreation Aide, three 0.47 FTE - Recreation Aide, and six 0.20 FTE -
Recreation Aide) in the Community Center Division.

Measure U - (307,171) (5.71) -
Youth, Parks, and
Community
Enrichment
Delete two positions (two 0.60 FTE - Customer Service
Assistant) and add one position (1.0 FTE - Program
Coordinator). The minimal increase will move the program slightly closer to cost recovery for supplies.

Measure U - (9,490) (0.20) -
Level 2 Reduction
Community Development Delete one position (1.0 FTE - Senior Development Project Manager) in the Building Division.

General Fund - (145,668) (1.00) -
Community Development Delete one position (1.0 FTE - Associate Planner) in the Planning Division.

Measure U - (117,055) (1.00) -
Community Development Delete one position (1.0 FTE - Support Services Manager) in the Administrative Services Division.

General Fund - (145,176) (1.00) -
Fire Delete three positions (1.0 FTE - Program Supervisor, 1.0 FTE - Fire Captain, 1.0 FTE - Firefighter Admin) and add one position (1.0 FTE - Administrative Analyst) in the
Diversity, Outreach and Recruitment (DOR) Division.

Measure U - (898,460) 1.00 (3.00)
Human Resources Delete one position (1.0 FTE - Program Specialist) in the HR Employment, Classification, and Development Division, which would reduce Organizational Development
programming by 50%.

General Fund - (182,077) - (1.00)
Human Resources Delete one position (1.0 FTE - Administrative Analyst) in the HR Employment, Classification, and Development Division, which would reduce Organizational Development program
by 100%.

General Fund - (134,300) - (1.00)
Human Resources Delete one position (1.0 FTE - Administrative Assistant) in the HR Administration Division eliminating administrative support for all HR divisions. Other HR division will have to pick up this work which will result in reduced responses to internal and external customers.

General Fund - (99,379) - (1.00)
Human Resources Delete one position (1.0 FTE - Administrative Analyst) in the Office of Diversity and Equity reducing internal Diversity, Equity, and Inclusion (DEI) programming and initiatives.

Measure U - (112,831) (1.00) -
45 FY2025/26 Proposed Budget

Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Vacant FTE Filled
Level 2 Reduction (Cont.)
Police Delete one position (1.0 FTE - Account Clerk II) from Fiscal Operations redistributing the department's accounts
payables amongst remaining staff and reducing backup
support for the division's other functions (e.g., travel, purchasing, asset seizure/forfeiture, alarm billing, etc.).

General Fund - (74,773) (1.00) -
Police Offset one position (1.0 FTE - Police Officer) from the Force Investigations Team (FIT) using one-time funds from MYOP I11003300.

General Fund - (257,241) - -
Police Delete twenty-three positions (23.0 FTE - Community Service Officer II) reducing the Hiring Pipeline Program to

23.0 FTE - Community Service Officer II positions.

Measure U - (2,193,786) (23.00) -
Police Offset one position (1.0 FTE - Police Officer) from the Public Information Office (PIO) using one-time funding from MYOP I11003300.

General Fund - (167,894) - -
Police Delete one positions (1.0 FTE - Police Officer) and offset two positions (2.0 FTE - Police Officer) from the Advanced Officer Training (AOT) unit using one-time funds from
MYOP I11003300.

General Fund - (524,631) (1.00) -
Police Delete one position (1.0 FTE - Senior Staff Assistant) discontinuing executive support for the Deputy Chiefs.

General Fund - (84,104) - (1.00)
Youth, Parks, and
Community
Enrichment
Delete ten positions (10.0 FTE - Park Maintenance Worker) in the Park Maintenance Division. These are hard to fill positions and do not impact current maintenance service levels.

Measure U - (684,588) (9.00) (1.00)
Youth, Parks, and
Community
Enrichment
Delete three positions (0.15 FTE - Recreation Aide, 0.22 FTE - Recreation Aide, and 0.40 FTE - Recreation Aide) in the Community Recreation Division. Reduce internal hours of operation at 28th and B Skate and Urban Art Park.

Measure U - (29,091) (0.77) -
Youth, Parks, and
Community
Enrichment
Delete two positions (0.25 FTE - Recreation Aide and 0.40 FTE - Recreation Aide) in the Community Recreation
Division. Discontinue internally operated 28th and B Skate and Urban Art Park open hours and utilize contracted
instructors for all programming.

Measure U - (28,158) (0.65) -
Youth, Parks, and
Community
Enrichment
Delete six positions (four 0.32 FTE - Youth Aide, 0.42 FTE - Youth Aide, and 0.48 FTE - Youth Aide) in Youth
Employment Division. This change will reduce number of
available opportunities for youth stipend based programs.

Measure U - (80,996) (2.18) -
Youth, Parks, and
Community
Enrichment
Delete one position (0.80 FTE - Custodian II) in Community Center Division.

Measure U - (57,642) - (0.80)
Total Change $ 69,192 (15,399,303) (86.50) (14.80) 46 FY2025/26 Proposed Budget

Citywide Strategies

Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Vacant FTE Filled
Citywide and Community
Support
Liquidate one-time funding in the Community Investment
Program (I02001200). Return unused dollars to fund
balance.

General Fund - (76,567) - -
Citywide and Community
Support
Liquidate one-time funding in the Thousand Strong
Program (I01000300). Return unused dollars to fund
balance.

Measure U - (1,500,000) - -
Citywide and Community
Support
Liquidate one-time funding in the Sacramento Riverfront Program (I02180200). Return unused dollars to fund
balance.

General Fund - (10,800) - -
Citywide and Community
Support
Liquidate one-time funding in the Sacramento Zoo
Relocation Study Project (I02002100). Return unused
dollars to fund balance.

General Fund - (35,118) - -
Citywide and Community
Support
Liquidate one-time funding in the Arts Education and
Community Outreach Project (I17001100). Return unused
dollars to fund balance.

General Fund - (56,618) - -
Citywide and Community
Support
Liquidate one-time funding in the Commission Stipends
Program (I04000100). Return unused dollars to fund
balance.

General Fund - (13,700) - -
Citywide and Community
Support
Liquidate one-time funding in the Commission Stipends
Program (I04000100). Return unused dollars to fund
balance.

Measure U - (24,750) - -
Citywide and Community
Support
Liquidate one-time funding in the Creative Economy Pilot Project (I18000300). Return unused dollars to fund balance.

Innovation and
Growth
- (14,431) - -
Citywide and Community
Support
Liquidate one-time funding in the Economic Development
Initiatives Project (I02181000). Return unused dollars to fund balance.

Measure U - (200,650) - -
Citywide and Community
Support
Liquidate one-time funding in the City Manager Youth
Programs Project (I80020800). Return unused dollars to
fund balance.

Measure U - (157,076) - -
Citywide and Community
Support
Liquidate one-time funding in the Community
Neighborhood Improvements Program (D01000000). Return
unused dollars to fund balance.

General Fund - (70,137) - -
Citywide and Community
Support
Liquidate one-time funding in the Community
Neighborhood Funding Program (D01000500). Return
unused dollars to fund balance.

General Fund - (3,438) - -
Citywide and Community
Support
Liquidate one-time funding in the Broadway/Alhambra
Navigation Center Project (C15001100). Return unused
dollars to fund balance.

Measure U - (4,737) - -
Citywide and Community
Support
Liquidate remaining available fund balance in the
American Rescue Plan Act (ARPA) Reinvestment Fund and
return unused dollars to the General Fund.

General Fund (3,454,582) - - -
Citywide and Community
Support
Liquidate one-time funding in the Arts and Creative
Economy Program (I17609000). Return unused dollars to
fund balance.

ARPA
Reinvestment
Fund
- (1,250,000) - -
Citywide and Community
Support
Liquidate one-time funding in the Code Service Homeless Response Team Project (I21000500). Return unused dollars to fund balance.

ARPA
Reinvestment
Fund
- (7,875) - -
Citywide and Community
Support
Liquidate one-time funding in the Animal Services for the Homeless Response Team Project (I21008500). Return
unused dollars to fund balance.

ARPA
Reinvestment
Fund
- 8,869 - -
Citywide and Community
Support
Liquidate one-time funding in the Vaccine Outreach and
Education Project (I02612050). Return unused dollars to fund balance.

ARPA
Reinvestment
Fund
- (12,248) - -
Citywide and Community
Support
Liquidate one-time funding in the Old Sacramento
Improvements Project (I02612030). Return unused dollars to fund balance.

ARPA
Reinvestment
Fund
- (5) - -
Citywide and Community
Support
Liquidate one-time funding in the ARPA Small Business
Support Program (I02612000) for cleaning along corridors, street alley closures and paving, and the City of Festivals

ARPA
Reinvestment
Fund
- (92,741) - -
Citywide and Community
Support
Liquidate one-time funding in the Northgate Economic
Recovery Project (I02612080). Return unused dollars to
fund balance.

ARPA
Reinvestment
Fund
- (1) - -
Citywide and Community
Support
Liquidate one-time funding in the ARPA Gang Prevention
and Intervention Project (I02000600). Return unused dollars to fund balance.

ARPA
Reinvestment
Fund
- (947) - -
47 FY2025/26 Proposed Budget

Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Vacant FTE Filled
Citywide and Community
Support
Liquidate one-time funding in the Business Compliance
Unit Night Team Project (I21000400). Return unused dollars to fund balance.

ARPA
Reinvestment
Fund
- (291,963) - -
Citywide and Community
Support
Liquidate one-time funding in the Parking Facilities
Development Program (V15710000). Return unused dollars
to fund balance.

ARPA
Reinvestment
Fund
- (7,501) - -
Citywide and Community
Support
Liquidate one-time funding in the Comprehensive Siting
Plan Location Buildout Project (C15001500). Return
unused dollars to fund balance.

ARPA
Reinvestment
Fund
- (106,093) - -
Citywide and Community
Support
Liquidate remaining available fund balance in the
American Rescue Plan Act (ARPA) Reinvestment Fund and
return unused dollars to the General Fund.

ARPA
Reinvestment
Fund
3,454,582 - - -
Citywide and Community
Support
Liquidate one-time funding in the Public Records Staffing Project (I11002800). Return unused dollars to fund balance.

ARPA
Reinvestment
Fund
- (21,309) - -
Total Change $ 0 (3,949,836) 0.00 0.00
48 FY2025/26 Proposed Budget

Measure L (Sacramento Children’s Fund) Review
An internal assessment was conducted to determine whether any of the proposed reductions would cause youth expenditures to go below the Measure L (Sacramento Children’s Fund) baseline as determined by the City Auditor’s Office (CAO). Out of all of the proposals, there were eighteen proposals totaling approximately $2.0 million that would cause expenditures to go below the Measure L baseline. The amount was determined using the methodology of the CAO. Since the baseline was based on actual youth spending for FY2023/24, the only reductions eligible for the Measure L calculation were the ones that would reduce actual youth spending from that fiscal year. Therefore, proposed reductions of vacant positions , unspent supplies and services and unspent projects are not eligible since they were not expenditures in FY2023/24 baseline. Fee increases tied to departments serving youth would also be reduced from the calculation.

The following table contains all strategies that are considered youth related.

Department Description Fund Expenditure
Change
FTE
Change
FTE
Filled
Meas ure L
Amount Reas on
Citywide Liquidate one-time funding in the Thousand Strong Program (I01000300). Return unused dollars to fund
balance.

Measure U (1,500,000) - - (426,594) Only 426,594 is in the CAO's baseline funding for
the program.

Citywide Liquidate one-time funding in the City Manager Youth Programs Project (I80020800). Return unused dollars to
fund balance.

Measure U (157,076) - - - Not in Measure L baseline
analysis, not applicable.

Fire Delete three positions (1.0 FTE - Program Supervisor, 1.0 FTE - Fire Captain, 1.0 FTE - Firefighter Admin) and add one position (1.0 FTE - Administrative Analyst) in the
Div
ersity, Outreach and Recruitment (DOR) Division.

Measure U (898,460) (2.00) (3.00) (478,520) Measure L Amount equals reduction minus non-youth
related activities.

Police Eliminate funding for the Youth & Family Investments program.

Measure U (1,300,000) - - (265,895) Only 265,895 is in the CAO's baseline funding for
the program.

Youth, Parks,
and Community
Enrichment
Delete ten positions (10.0 FTE - Park Maintenance Worker) in the Park Maintenance Division. These are hard to fill positions and do not impact current maintenance service level
s.

Measure U (684,588) (10.00) (1.00) - Not in Measure L
calculation because there
is no effect on youth
acit
ivites.

Youth, Parks,
and Community
Enrichment
Delete three positions (0.15 FTE - Recreation Aide, 0.22 FTE - Recreation Aide, and 0.40 FTE - Recreation Aide) in the Community Recreation Division. Reduce internal hours of operat
ion at 28th and B Skate and Urban Art Park.

Measure U (29,091) (0.77) (19,229) Measure L Amount equals reduction less unfilled
positions.

Youth, Parks,
and Community
Enrichment
Delete two positions (0.25 FTE - Recreation Aide and 0.40 FTE - Recreation Aide) in the Community Recreation
Division. Discontinue internally operated 28th and B Skate and Urban A
rt Park open hours and utilize contracted
instructors for all programming.

Measure U (28,158) (0.65) (18,612) Measure L Amount equals reduction less unfilled
positions.

Youth, Parks,
and Community
Enrichment
Add one position (0.40 FTE - Utility Worker) and decrease funding for service and supplies in the Aquatics Division by absorbing North Natomas Aquatic Complex pool
maint
enance duties previously contracted out and reduce
the scope of contracted custodial services.

Measure U (113,824) 0.40 (70,833) Measure L Amount equals reduction less cut to
services and supplies.

Youth, Parks,
and Community
Enrichment
Delete four positions (two 0.80 FTE - Program Coordinator,

0.22 FTE - Recreation Aide, and 0.46 FTE - Recreation
Aide) and add one position (1.0 FTE - Program Coordinator) in the Y
outh Workforce Development Division. This will
reduce and consolidate Stipend Program staffing.

Measure U (77,355) (1.28) (77,355) Included in the Measure L calculation.

Youth, Parks,
and Community
Enrichment
Delete six positions (four 0.32 FTE - Youth Aide, 0.42 FTE - Youth Aide, and 0.48 FTE - Youth Aide) in Youth
Employment Division. This change will reduce number of
avail
able opportunities for youth stipend based programs.

Measure U (80,996) (2.18) (80,996) Included in the Measure L calculation.
49 FY2025/26 Proposed Budget

Once the amount was determined, the next step of the assessment was to determine whether the Budget exceeded or reduced the baseline funding. The Budget includes any increases to overall employee service (such as contractual labor agreements, health benefits, PERS, etc.) and increases to supply and services . The assessment methodology involves comparing the Budget for the sample of youth programs at the department level to the CAO baseline tracker. This assessment showed that although there are approximately $ 2.0 million in youth program reductions, approximately $6. 2 Department Description Fund Expenditure
Change
FTE
Change
FTE
Filled
Meas ure L
Amount Reas on
Youth, Parks,
and Community
Enrichment
Delete one position (1.0 FTE - Staff Assistant) in the Fiscal Management Division. Staff Assistant position no longer needed after administrative team restructure.

Measure U (75,333) (1.00) - - Not in Measure L
calculation because these
positions are vacant.

Youth, Parks,
and Community
Enrichment
Delete one position (1.0 FTE - Senior Accounting
Technician) and add one position (1.0 FTE - Accounting
Technician). Realign administrative team to accommodate internal restructuring.

Measure U (7,622) 0.00 - - Not in Measure L
calculation because there
is no effect on youth
acitivites.

Youth, Parks,
and Community
Enrichment
Delete eight positions (two 0.40 FTE - Graduate Student Trainee and six 0.40 FTE - Student Trainee) and add one position (0.40 FTE - Senior Recreation Aide). This reduction will consolidate the Youth Workforce Development Division.

Measure U (104,324) (2.80) - (104,324) Included in the Measure L calculation.

Youth, Parks,
and Community
Enrichment
Delete one position (1.0 FTE - Program Specialist) and add one position (1.0 FTE - Park Maintenance Superintendent) in the Parks Maintenance Division to realign position to meet operational needs in City Cemetery Division and Park Operation Division.

Measure U 1,105 0.00 - - Not in Measure L
calculation because there
is no effect on youth
acitivites.

Youth, Parks,
and Community
Enrichment
Delete 12 positions (twelve 0.45 FTE - Utility Worker) in the Park Maintenance Division.

Measure U (205,884) (5.40) - - Not in Measure L
calculation because there
is no effect on youth
acitivites.

Youth, Parks,
and Community
Enrichment
Delete seven positions (0.90 FTE - Program Coordinator and six 0.38 FTE - Recreation Aide) from Expanded Learning
Division.

Measure U (156,968) (3.18) - (156,968) Included in the Measure L calculation.

Youth, Parks,
and Community
Enrichment
Delete three positions (two 0.50 FTE - Program Leader and

0.60 FTE - Program Leader) in Expanded Learning Division.

Measure U (95,340) (1.60) (1.00) (95,340) Included in the Measure L calculation.

Youth, Parks,
and Community
Enrichment
Change funding source for forty-five positions from Measure U Fund to START Fund. Move positions funded in
Expanded Learning Division to START Division. Positions support the Expanded Learning Opportunities Program
(ELOP) expansion of the After School Safety and Education Program operated by the START Division.

Measure U (241,785) (20.70) - - Not in Measure L
calculated because this
receives grant funding
source
Youth, Parks,
and Community
Enrichment
Delete one position (1.0 FTE - Program Coordinator) Access Leisure Division.

Measure U (79,901) (1.00) - (28,780) Measure L Amount reflects reduction less time
position spent unfilled.

Youth, Parks,
and Community
Enrichment
Delete six positions (six 0.15 FTE - Recreation Leader (Adpt Rec)) and add one position (0.47 FTE Recreation Leader
(Adpt Rec)) to realign non-career FTEs to fit program needs in Access Leisure Division.

Measure U (16,509) (0.43) - (5,947) Measure L Amount reflects reduction less time
position spent unfilled.

Youth, Parks,
and Community
Enrichment
Delete one position (0.12 FTE - Recreation Aide) and add one position (0.10 FTE - Senior Recreation Aide) to realign non-career FTE to fit program needs for the Summer Oasis summer camp in Expanded Learning Division.

Measure U (74) (0.02) - (74) Included in the Measure L
calculation.

Youth, Parks,
and Community
Enrichment
Delete thirteen positions (ten 0.80 FTE - Program Leader, two 1.0 FTE - Program Leader, 0.30 FTE - Recreation Aide, three 0.47 FTE - Recreation Aide, and six 0.20 FTE -
Recreation Aide) in the Community Center Division.

Measure U (307,171) (5.71) - (126,094) Measure L Amount reflects portion of cost related to
youth activities less
unfilled positions.

Youth, Parks,
and Community
Enrichment
Delete two positions (two 0.60 FTE - Customer Service
Assistant) and add one position (1.0 FTE - Program
Coordinator). The minimal increase will move the program slightly closer to cost recovery for supplies.

Measure U (9,490) (0.20) - (3,896) Measure L Amount reflects reduction less time
position spent unfilled.

Youth, Parks,
and Community
Enrichment
Delete one position (1.0 FTE - Program Leader) and add
two positions (1.0 FTE - Program Leader) to realign career staff to fit program and operational needs in Community Center Division.

Measure U (9,301) 0.00 - (3,813) Measure L Amount reflects reduction less time
position spent unfilled.

Youth, Parks,
and Community
Enrichment
Delete one position (0.80 FTE - Custodian II) in Community Center Division.

Measure U (57,642) (0.80) (0.80) (23,662) Measure L Amount reflects reduction less time
position spent unfilled.

Total Change (6,235,787)$ (59.32) (5.80) (1,986,932)$ 50 FY2025/26 Proposed Budget

million exceeds the baseline funding requirements in the sample assessment. In addition, $160,000 in youth-related revenue would further offset the $2.0 million expense reduction.

The formal Measure L assessment will be conducted by the CAO at year-end and will be based on actual spending for the fiscal year. If it is determined through the CAO assessment that youth programs do not meet the mandated baseline requirement for Measure L spending, adjustments will be made to increase funds to said programs to required levels.

Department and Citywide Strategies – Other Funds

The Budget includes $1.3 million in increases and strategic reductions to other funds that were directly tied to the proposed General Fund/IGF reduction strategies. This included increases to revenues, swapping General Fund/IGF Fund for other funds and Citywide strategies that not only reduced the impact to General /IGF Fund, but also to the other funds.

Category
FTE
Change
Net Budget
Change
Revenues - - 1 - 1,272,103
2 - -
3 - -
4 - -
Citywide - (4,101)
Total - $1,268,002
Proposed Strategies - Other Funds
51 FY2025/26 Proposed Budget

Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Vacant FTE Filled
Revenue
Community Development Increase revenue for the General Plan Updates Project (I22000000) by increasing the maximum building valuation amount subject to the General Plan Maintenance Fee
which increases the per-permit fee cap from $26,000 to
$38,200. Increase Long Range Planning employee offset by allocating additional time to the General Plan Updates
Project.

Development
Services
(100,000) 100,000 - -
Level 1 Reduction
Convention and Cultural
Services
Change funding source for eligible costs for visitor-serving facilities from General Fund and Measure U Fund to the
Community Center Fund.

Community
Center
- 347,430 - 2.00
Convention and Cultural
Services
Change funding source for History Division administrative support to Old Sacramento from General Fund and Measure U Fund to Community Center Fund.

Community
Center
- 299,673 - -
Convention and Cultural
Services
Change funding source for the New Year's Eve fireworks from General Fund to the Community Center Fund.

Community
Center
- 125,000 - -
Youth, Parks, and
Community
Discontinue Golf Subsidy. Subsidy is no longer necessary for vendor to continue maintenance services at current levels.

Golf - - - -
Youth, Parks, and
Community
Enrichment
Change funding source for forty-five positions from Measure U Fund to START Fund. Move positions funded in
Expanded Learning Division to START Division. Positions support the Expanded Learning Opportunities Program
(ELOP) expansion of the After School Safety and Education Program operated by the START Division.

START (805,245) 805,245 20.70 -
Citywide and Community
Support
Change funding source for Visit Sacramento for the
continual support of tourism recovery through event support and production from General Fund and Measure U Fund to
the Community Center Fund.

Community
Center
- 500,000 - -
Citywide
Citywide and Community
Support
Liquidate one-time funding in the Commission Stipends
Program (I04000100). Return unused dollars to fund
balance.

Water - (3,100) - -
Citywide and Community
Support
Liquidate one-time funding in the Commission Stipends
Program (I04000100). Return unused dollars to fund
balance.

NMA Safety,
Streets, Ped, Bic
- (1,001) - -
Total Change $ (905,245) 2,173,247 20.70 2.00
52 FY2025/26 Proposed Budget

Proposed Budget Modifications
There were $1.2 million in modifications to General Fund and IGF for augmentations and position add/deletes. This also included an increase of 13.98 FTEs.

Department
FTE
Change
Net Budget
Change
City Auditor - - City Manager - ($1,450)
Community Development - 703 Community Response - 46,718 Finance - 4,839
Fire 6.00 $198,576
Human Resources - - Information Technology - 55,096 Mayor/Council (Mayor) - - Mayor/Council (Office of Public
Safety Accountability
- -
Public Works 8.00 704,301
Utilities - (49,278)
Youth, Parks, and Community
Enrichment
(0.02) (141,384)
Citywide and Community Support - 412,571 Total 13.98 $1,230,692
Modifications* - General Fund
* Includes Augmentation and Add/Deletes
Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
City Auditor Delete one position (1.0 FTE - Assistant City Auditor) and add one position (1.0 FTE - Assistant Director) to improve operational efficiency and effectiveness.

General Fund - - -
City Manager Add one position (1.0 FTE - Program Manager) and delete one position (1.0 FTE - Program Specialist). The expansion of cannabis programming with newly approved social
consumption requires the creation of a new position.

General Fund - - -
City Manager Transfer one position (1.0 FTE - Administrative Analyst) and corresponding Language Access project (I02000410) from
City Manager's Executive Office to OIED Community
Engagement. Aligning the position's specialized work efforts to the best suited program area.

General Fund - (377,168) (1.00)
City Manager Transfer one position (1.0 FTE - Administrative Analyst) and corresponding Language Access project (I02000410) from
City Manager's Executive Office to OIED Community
Engagement. Aligning the position's specialized work efforts to the best suited program area.

Measure U - 375,718 1.00
Community Development Change department management of the ADA Education and Training project (I08000100) from Human Resources to the Community Development Department. This realignment
will optimize resource utilization by ensuring the project is managed by the department best positioned to implement
training and education programs.

General Fund (80,000) 80,000 -
Community Development Delete one position (1.0 FTE - Accountant Auditor) and add one new position (1.0 FTE - Administrative Analyst). This request has zero impact on the General Fund as the
supplies and services budget in Administrative Services is being reduced to make this cost-neutral.

General Fund - 703 -
Community Development Increase revenue budget in the Code Enforcement Division by establishing a Code Technology Fee and Capital
Improvement Project (CIP). The Code Technology Fee
would provide a dedicated funding mechanism for
technology-related needs, including the offset of two
positions (1.0 FTE - Senior Department Systems Specialist and 1.0 FTE - Department Systems Specialist) currently
budgeted in the Information Technology (IT) Department.

General Fund (400,000) 400,000 -
53 FY2025/26 Proposed Budget

Department Description Fun d
Revenue/
Offset
Adj
ustment
Expenditure
Change
FTE
Change
Community Response Increase funding for three new vehicles for Neighborhood Resource Coordinator (NRC) positions, two to be offset with Opioi
d Settlement Funds.

Measure U - 46,718 -
Finance Add one position (1.0 FTE - Customer Service
Representative) and establish offset. This is related to the Publi
c Works' modified Residential Permit Parking program
fee increase.

General Fund - 60 1.00
Finance Decrease revenue budget for Escheat to estimated actuals.

The budget has been overstated for this revenue source.

General Fund 67,000 - -
Finance Delete one position (1.0 FTE - Financial Services Supervisor) and add one position (1.0 FTE - Administrative Analy
st). The new position better suits the duties currently performed and needed.

General Fund (51,139) 6,704 -
Finance Delete two positions (2.0 FTE - Customer Service Representative) and add one position (1.0 FTE Program
Speci
alist). This change will consolidate all tax programs
within the Permits and Taxes group, streamline process
among all the programs, and create administrative
efficiencies.

General Fund - (17,786) (1.00)
Finance Remove the Innovation and Growth Fund offset for the Senior Development Project Manager Position in the
Infr
astructure Finance Division. This is related to a
reduction strategy in the City Manager's Office.

General Fund - 175,572 -
Finance Remove the Innovation and Growth Fund offset for the Senior Development Project Manager Position in the
Infr
astructure Finance Division. This is related to a
reduction strategy in the City Manager's Office.

Innovation and
Growth
- (175,572) -
Fire Add one position (1.0 FTE - Firefighter Admin) to conduct the role of an EMS Corps Program Coordinator. The position is gr
ant-funded through the California Employment
Development Department for over two years. This grant
supports salaries, materials, training, student stipends, and administrative costs ensuring sustainable program delivery and alignment with Sacramento's Racial Equity Statement goals.

General Fund (168,509) 210,684 1. 00
Fire Add one position (1.0 FTE - Firefighter Admin) to conduct the role of an EMS Corps Program Coordinator. The position is gr
ant-funded through the California Employment
Development Department for over two years. This grant
supports salaries, materials, training, student stipends, and administrative costs ensuring sustainable program delivery and alignment with Sacramento's Racial Equity Statement goals.

Measure U - (42,175) -
Fire Add three positions (3.0 FTE - Fire Prevention Officer II) .

The addition of these positions will enhance the operations of the F
ire Prevention Division.

General Fund (551,250) 749,826 3. 00
Fire Add two positions (2.0 FTE - Firefighters Administrative).

Due to lawsuits filed by various state, local, and tribal governm
ents, the City has been awarded funding to support
future opioid abatement initiatives. These two positions will be fully funded through the settlement, and the choice to use a Firefighter Administrative position instead of an Administrative Analyst stems from the specialized
knowledge and experience of firefighter paramedics in
patient care. They are trained to administer buprenorphine and other vital medications for opioid withdrawal, offering essential interventions in addiction care.

General Fund (337,018) 337,018 2. 00
54 FY2025/26 Proposed Budget

Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Human Resources Transfer the ADA Education and Training project (I80000100) from Human Resources to Community
Development to enhance project efficiency and ensure
funding is used in a manner consistent with its intended purpose.

General Fund 80,000 (80,000) -
Information Technology Increase funding to support the IT Training Development Plan to address a significant gap in staff skills and
knowledge base that is required to support the City’s
technical environment and critical business systems.

Training helps maintain and enhance intellectual capital providing direct value to the organization.

General Fund - - -
Information Technology Increase on-going funding for the City's Adobe Experience Manager (AEM) license upgrade. The City's website and
mass communication system, powered by AEM, serves as a
central platform for providing information, services, and fostering engagement with residents, businesses, and
visitors. Adobe is transitioning away from its standard basic license and hosting services, moving all customers to the Enterprise subscription, which offers additional features.

General Fund - 55,096 -
Mayor/Council Delete one position (1.0 FTE - Staff Aide) and add one position (1.0 FTE - Senior Council Representative) as the Staff Aide classification is no longer active.

General Fund - - -
Mayor/Council Delete three positions (2.0 FTE - Office of Public Safety Accountability (OPSA) Investigator and 1.0 FTE - OPSA
Analyst) and add three positions (2.0 FTE - OPSA Senior Investigator and 1.0 FTE - OPSA Community Engagement
Coordinator) to fix OPSA positions to the correct
classification as approved by City Council on September 12, 2023 (Resolution No. 2023-0293).

Measure U - - -
Public Works Add one position (1.0 FTE - Supervising Engineer) to oversee the Traffic Operations Center to better direct
increased planning and implementation of traffic-related technology and equipment.

General Fund (200,785) 199,517 1
Public Works Add six positions (1.0 FTE - Supervising Engineer, 1.0 FTE - Senior Engineer, 2.0 FTE - Assistant Civil Engineers, 1.0 FTE - Traffic Investigator III, and 1.0 FTE - Administrative Analyst) in the Transportation Division to implement
transportation safety improvements. Add one vehicle for the Traffic Investigator.

General Fund (913,417) 911,379 6
Public Works Conduct various additions and modifications in the Commercial Waste Compliance Division:
• Adjust revenue and expense budgets for commercial waste franchise fees and fines to reflect anticipated revenue and expenses.
• Increase the annual General Fund contribution toward the Illegal Dumping project (I15200200).
• Create a new capital project for Street Maintenance to address street and alley repair needs.
• Add one position (1.0 FTE - Senior Integrated Waste
Equipment Operator) and one specialized narrow street
sweeper.
• Reduce annual Measure U contribution to the Illegal
Dumping project (I15200200) to fund a greater share from commercial franchise waste fees.
• Reduce annual General Fund contribution to the Landfill Site Closure project (Y14000100) and 28th Street Landfill Regulatory project (Y15000100).

General Fund (256,021) 826,591 1
55 FY2025/26 Proposed Budget

Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Public Works Conduct various additions and modifications in the Commercial Waste Compliance Division:
• Adjust revenue and expense budgets for commercial waste franchise fees and fines to reflect anticipated revenue and expenses.
• Increase the annual General Fund contribution toward the Illegal Dumping project (I15200200).
• Create a new capital project for Street Maintenance to address street and alley repair needs.
• Add one position (1.0 FTE - Senior Integrated Waste
Equipment Operator) and one specialized narrow street
sweeper.
• Reduce annual Measure U contribution to the Illegal
Dumping project (I15200200) to fund a greater share from commercial franchise waste fees.
• Reduce annual General Fund contribution to the Landfill Site Closure project (Y14000100) and 28th Street Landfill Regulatory project (Y15000100).

Measure U - (570,000) -
Public Works Delete one position (1.0 FTE - Account Clerk II) and add one position (1.0 FTE - Accountant Auditor) to provide
staffing to address workload for grant accounting and
reimbursements.

General Fund (44,010) 44,379 -
Public Works Delete one position (1.0 FTE - Architectural Technician III) and add one position (1.0 FTE - Facilities and Real
Property Superintendent) in the Facilities Division to
manage upcoming major capital projects and support
internal construction processes and oversight.

General Fund (56,907) 56,907 -
Public Works Delete one position (1.0 FTE - Mail Processor I) and add one position (1.0 FTE - Senior Staff Assistant) in the
Facilities Division to provide a greater range of needed services beyond processing mail.

General Fund - 6,740 -
Public Works Delete one position (1.0 FTE - Street Construction Laborer) and add one position (1.0 FTE - Street Maintenance
Supervisor) to have adequate supervisors to manage
multiple job sites in the In-Source Concrete Section.

General Fund (16,455) 16,455 -
Public Works Delete one position (1.0 FTE - Survey Technician II) and add one position (1.0 FTE - Supervising Construction
Inspector) to oversee inspection staff and consultants
working in the City right-of-way.

General Fund (40,010) 40,426 -
Public Works Delete three positions (3.0 FTE - Administrative Analyst) and add three positions (3.0 FTE - Associate Planner) to better meet the workload and responsibilities in the Transportation Planning Section.

General Fund 37,543 (37,543) -
Public Works Delete two positions (1.0 FTE - Engineering Technician I and 1.0 FTE - Engineering Technician III) and add two
positions (2.0 FTE - Assistant Civil Engineer) to increase staff capacity to work on various transportation projects.

General Fund (59,905) 60,705 -
Public Works Increase expense budget one-time for Urban Forestry by $500,000 to address stump removal backlog from 2023
storm. This is being fully offset by Landscape and Lighting funds.

General Fund (500,000) 500,000 -
Public Works Increase funding for the Facility Reinvestment CIP (C13900000) to address ongoing cost increases.

Measure U - 300,000 -
Public Works Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve efficiency.

General Fund - 319,096 -
Public Works Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve efficiency.

Measure U - 79,616 -
56 FY2025/26 Proposed Budget

Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Utilities Delete two positions (2.0 FTE - Utilities Locator) and add two positions (2.0 FTE - Utilities Operations and
Maintenance [OandM] Leadworkers); and add two positions (2.0 Utilities OandM Serviceworkers) for the Wastewater and Drainage OandM Division's Homeless Encampment
Program. Current FTE in the division are used for
encampment clean up, which reduces the team's ability to maintain other regulatory requirements, citizen and council request
s, and other underground infrastructure needs.

General Fund (49,278) - -
Youth, Parks, and
Community
Enrichment
Add 16 New Grounds Maintenance Equipment Measure U - 780,600 - Youth, Parks, and
Community
Enrichment
Add Three Utility and Transport Equipment Measure U 117,265 - Youth, Parks, and
Community
Enrichment
Add Two Specialized Fire Prevention and Renovation
Equipment
Measure U - 464,677 -
Youth, Parks, and
Community
Enrichment
Delete one position (0.12 FTE - Recreation Aide) and add one position (0.10 FTE - Senior Recreation Aide) to realign non-career FTE to fit program needs for the Summer Oasis summer camp in Expanded Learning Division.

Measure U - (74) (0.02)
Youth, Parks, and
Community
Enrichment
Delete one position (1.0 FTE - Program Leader) and add
two positions (1.0 FTE - Program Leader) to realign career staff to fit program and operational needs in Community Center Division.

Measure U - (9,301) -
Youth, Parks, and
Community
Enrichment
Remove 10 Outdated Fleet Equipment from YPCE’s
FY2025/26 Fleet Replacement Budget
Measure U - (1,494,551) -
Citywide and Community
Support
Increase funding to pay the annual software license fee for LaborSoft case management software used by Labor
Relations Division in HR to ensure cases are tracked for management of case deadlines, reduction in manual work
by staff, and to provide data and analytical reporting.

Additionally, increase funding for the annual maintenance of AbsenceSoft software used by the Leave Administration Division in HR to reduce manual work of staff in the program and help ensur
e employees receive notices timely and all
leaves are tracked for compliance.

General Fund - 90,000 -
Citywide and Community
Support
Increase on-going funding for incremental increases for annual software licenses, subscriptions, system
maintenance, and technical support increases that support existing citywide business and technology systems and
applications. Ongoing software maintenance, subscriptions, and technical support are crucial for ensuring that business systems function optimally and maintain high availability.

General Fund - 322,571 -
Total Change $ (3,540,161) 4,770,853 13.98
57 FY2025/26 Proposed Budget

Proposed Budget Modifications – Other Funds
There were $1.5 million in modifications to other funds for augmentations and position add/deletes. There is an increase of 9.75 FTEs.

9.75 $1,540,537
Modifications* - Other Funds
* Includes Augmentation and Add/Deletes
58 FY2025/26 Proposed Budget

Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Convention and Cultural
Services
Delete one position (1.0 FTE - Events Duty Person) and add five positions (five 0.20 FTE - Events Duty Person).

Community
Center
- 0 0.00
Convention and Cultural
Services
Delete three positions (3.0 FTE - Events Associate) and add 30 positions (thirty 0.10 FTE - Events Associate).

Community
Center
- 12 0.00
Convention and Cultural
Services
Increase funding for security and utility expenses for the Crocker Art Museum.

Community
Center
- 357,117 -
Convention and Cultural
Services
Increase funding for the activation support for Old
Sacramento in the History Division Budget under the
Community Center Fund.

Community
Center
- 150,000 -
Human Resources Delete one position (1.0 FTE - Administrative Analyst) and add one position (1.0 FTE - Senior Personnel Analyst) in the HR Leave Administration program to ensure City is abiding by all leave administration laws and policies and reducing Workers' Compensation costs.

Worker's
Compensation
Fund
- (14,707) 0.00
Human Resources Delete one position (1.0 FTE - Program Specialist) and add one position (1.0 FTE - Program Manager) in the HR Leave Administration program to ensure that the City is abiding by all leave laws and policies and to improve response time in management of the Citywide leave administration. This
would positively impact other departments and reduce long term Workers' Compensation costs.

Worker's
Compensation
Fund
- (4,959) 0.00
Information Technology Increase on-going funding for the City's Adobe Experience Manager (AEM) license upgrade. The City's website and
mass communication system, powered by AEM, serves as a
central platform for providing information, services, and fostering engagement with residents, businesses, and
visitors. Adobe is transitioning away from its standard basic license and hosting services, moving all customers to the Enterprise subscription, which offers additional features.

Community
Center
- 2,385 -
Information Technology Increase on-going funding for the City's Adobe Experience Manager (AEM) license upgrade. The City's website and
mass communication system, powered by AEM, serves as a
central platform for providing information, services, and fostering engagement with residents, businesses, and
visitors. Adobe is transitioning away from its standard basic license and hosting services, moving all customers to the Enterprise subscription, which offers additional features.

Parking - 920 -
Information Technology Increase on-going funding for the City's Adobe Experience Manager (AEM) license upgrade. The City's website and
mass communication system, powered by AEM, serves as a
central platform for providing information, services, and fostering engagement with residents, businesses, and
visitors. Adobe is transitioning away from its standard basic license and hosting services, moving all customers to the Enterprise subscription, which offers additional features.

Recycling and
Solid Waste
- 4,535 -
Information Technology Increase on-going funding for the City's Adobe Experience Manager (AEM) license upgrade. The City's website and
mass communication system, powered by AEM, serves as a
central platform for providing information, services, and fostering engagement with residents, businesses, and
visitors. Adobe is transitioning away from its standard basic license and hosting services, moving all customers to the Enterprise subscription, which offers additional features.

Storm Drainage - 2,713 -
Information Technology Increase on-going funding for the City's Adobe Experience Manager (AEM) license upgrade. The City's website and
mass communication system, powered by AEM, serves as a
central platform for providing information, services, and fostering engagement with residents, businesses, and
visitors. Adobe is transitioning away from its standard basic license and hosting services, moving all customers to the Enterprise subscription, which offers additional features.

Wastewater - 2,149 -
59 FY2025/26 Proposed Budget

Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Information Technology Increase on-going funding for the City's Adobe Experience Manager (AEM) license upgrade. The City's website and
mass communication system, powered by AEM, serves as a
central platform for providing information, services, and fostering engagement with residents, businesses, and
visitors. Adobe is transitioning away from its standard basic license and hosting services, moving all customers to the Enterprise subscription, which offers additional features.

Water - 7,202 -
Public Works Add 1.0 FTE Senior Integrated Waste Equipment Operator to operate front load recycling route to serve newer and planned higher density developments.

Recycling and
Solid Waste
- 106,860 1.00
Public Works Add one position (1.0 FTE - Supervising Engineer) to oversee the Traffic Operations Center to better direct
increased planning and implementation of traffic-related technology and equipment.

Gas Tax 2016 159,614 - -
Public Works Add six positions (1.0 FTE - Supervising Engineer, 1.0 FTE - Senior Engineer, 2.0 FTE - Assistant Civil Engineers, 1.0 FTE - Traffic Investigator III, and 1.0 FTE - Administrative Analyst) in the Transportation Division to implement
transportation safety improvements. Add one vehicle for the Traffic Investigator.

Gas Tax 2016 174,614 46,500 -
Public Works Delete one position (1.0 FTE - Vehicle Service Attendant) and add one position (1.0 FTE - Fleet Service Coordinator) to address ongoing administrative needs in the shops and free up mechanics to spend more time working on vehicles.

Fleet
Management
- 3,182 0.00
Public Works Delete three positions (3.0 FTE - Administrative Analyst) and add three positions (3.0 FTE - Associate Planner) to better meet the workload and responsibilities in the Transportation Planning Section.

Gas Tax 2016 (37,543) - -
Public Works Increase expense budget one-time for Urban Forestry by $500,000 to address stump removal backlog from 2023
storm. This is being fully offset by Landscape and Lighting funds.

Landscaping and
Lighting
500,000 - -
Public Works Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve efficiency. 4th R Program - 59 -
Public Works Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve efficiency.

Community
Center
- 141 -
Public Works Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve efficiency.

Marina - 57 -
Public Works Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve efficiency.

Parking - 1,709 -
Public Works Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve efficiency.

Recycling and
Solid Waste
- 217,309 -
Public Works Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve efficiency.

Risk Mgmt - 5,440 -
Public Works Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve efficiency.

Storm Drainage - 39,383 -
Public Works Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve efficiency.

Wastewater - 37,310 -
Public Works Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve efficiency.

Water - 39,880 -
Public Works Increase merchant parking validation coupon fee to better recover issuance costs and reduce misuse.

Parking (56,406) - -
Public Works Increase monthly rates at City Parking Garages to reflect increasing costs and remain competitive with surrounding market.

Parking (101,493) 3,045 -
60 FY2025/26 Proposed Budget

Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Public Works Increase parking garage prepay and online reservation rates to balance market demand.

Parking (156,314) 4,689 -
Public Works Increase revenue and expense budget for Marina Special Revenue Fund to reflect implementation of increased berth rates as of 1/1/25 and increased operating costs.

Marina (150,000) 75,000 -
Public Works Increase revenue and expense budgets for the Parking Fund to reflect higher ongoing growth in parking garage
utilization.

Parking (550,000) 225,000 -
Public Works Increase the hourly rates in City parking garages to be consistent with the surrounding market.

Parking (344,462) 11,294 -
Public Works Offset one position (1.0 FTE - Systems Engineer) with one- time funds from the Parking Fund. Position will move to the Cost Plan in FY2026/27.

Parking - 138,621 -
Public Works Repeal discounted parking rates in City garages for electric vehicles (EVs) as this legacy program is no longer necessary to promote EV adoption.

Parking (53,411) 1,602 -
Public Works Replace Kinney Police Facility HVAC system as the system is past end of useful life.

Cal EPA - 557,000 -
Utilities Add one position (1.0 FTE - Construction Inspector II) and a Ford Maverick for the Engineering and Water Resources
Division. This position will provide resources to provide construction inspection services for expanding Water,
Wastewater, and Storm Drainage CIPs.

Water (238,377) 173,706 1.00
Utilities Add one position (1.0 FTE - Engineering Technician III) for the Engineering and Water Resources Division. This position will provide resources to support implementation of the expanded Storm Drainage Capital Improvement Program
(CIP) and will support the Water, Wastewater, and Private Development projects.

Storm Drainage (222,066) 119,028 1.00
Utilities Add one position (1.0 FTE - Instrument Technician II) and a Ford Maverick Crew Hybrid vehicle for the Wastewater and Drainage OandM Division. This position will provide
resources for the implementation of new software/hardware systems for the DOU Security Master Plan.

Storm Drainage 24,175 - -
Utilities Add one position (1.0 FTE - Instrument Technician II) and a Ford Maverick Crew Hybrid vehicle for the Wastewater and Drainage OandM Division. This position will provide
resources for the implementation of new software/hardware systems for the DOU Security Master Plan.

Wastewater 33,081 - -
Utilities Add one position (1.0 FTE - Instrument Technician II) and a Ford Maverick Crew Hybrid vehicle for the Wastewater and Drainage OandM Division. This position will provide
resources for the implementation of new software/hardware systems for the DOU Security Master Plan.

Water (57,256) 41,398 1.00
Utilities Add three positions (1.0 FTE - Utilities O and M Leadworker,

1.0 FTE - Utilities O and M Serviceworker, and 1.0 FTE
Administrative Technician) with a Ford F-250 Supercab and Vermeer Tow Trailer for the Wastewater and Drainage O and M Division . These new positions will support the Trash Capture Program as a result of the Storm Drainage Capital Improvement Program.

Storm Drainage (331,720) 361,230 3.00
Utilities Add three positions (1.0 FTE - Utilities O and M Leadworker,

Storm Drainage
Property Fee
- 203,000 -
Utilities Delete one position (1.0 FTE - Customer Service Representative) and add one position (1.0 FTE - Customer Service Specialist) for the Business Services Division. This position will support the additional duties related to Control 1 Dispatching Operations and the Customer Service Quality Assurance program.

Recycling and
Solid Waste
4,552 (4,515) -
61 FY2025/26 Proposed Budget

Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Utilities Delete one position (1.0 FTE - Customer Service Representative) and add one position (1.0 FTE - Customer Service Specialist) for the Business Services Division. This position will support the additional duties related to Control 1 Dispatching Operations and the Customer Service Quality Assurance program.

Storm Drainage 1,313 (1,302) -
Utilities Delete one position (1.0 FTE - Customer Service Representative) and add one position (1.0 FTE - Customer Service Specialist) for the Business Services Division. This position will support the additional duties related to Control 1 Dispatching Operations and the Customer Service Quality Assurance program.

Storm Drainage
Property Fee
350 (347) -
Utilities Delete one position (1.0 FTE - Customer Service Representative) and add one position (1.0 FTE - Customer Service Specialist) for the Business Services Division. This position will support the additional duties related to Control 1 Dispatching Operations and the Customer Service Quality Assurance program.

Wastewater 1,313 (1,302) -
Utilities Delete one position (1.0 FTE - Customer Service Representative) and add one position (1.0 FTE - Customer Service Specialist) for the Business Services Division. This position will support the additional duties related to Control 1 Dispatching Operations and the Customer Service Quality Assurance program.

Water (7,528) 7,538 0.00
Utilities Delete one position (1.0 FTE - Program Manager) and add one position (1.0 FTE - Government Affairs Manager) in the Office of the Director Government Affairs Section. The
Government Affairs Program is expanding to include
Sustainability, Security and Emergency Preparedness, and Department of Utilities (DOU) Department Support
Programs.

Storm Drainage 23,462 (15,873) -
Utilities Delete one position (1.0 FTE - Program Manager) and add one position (1.0 FTE - Government Affairs Manager) in the Office of the Director Government Affairs Section. The
Government Affairs Program is expanding to include
Sustainability, Security and Emergency Preparedness, and Department of Utilities (DOU) Department Support
Programs.

Storm Drainage
Property Fee
(12,806) 17,165 -
Utilities Delete one position (1.0 FTE - Program Manager) and add one position (1.0 FTE - Government Affairs Manager) in the Office of the Director Government Affairs Section. The
Government Affairs Program is expanding to include
Sustainability, Security and Emergency Preparedness, and Department of Utilities (DOU) Department Support
Programs.

Wastewater 7,992 969 -
Utilities Delete one position (1.0 FTE - Program Manager) and add one position (1.0 FTE - Government Affairs Manager) in the Office of the Director Government Affairs Section. The
Government Affairs Program is expanding to include
Sustainability, Security and Emergency Preparedness, and Department of Utilities (DOU) Department Support
Programs.

Water (18,648) 44,399 0.00
Utilities Delete one position (1.0 FTE - Senior Maintenance Worker) and add one position (1.0 FTE - General Repair Worker) for the Engineering and Water Resources Division. The
classification for the General Repair Worker more closely aligns with the duties required in the Logistics Tool Room as compared to the Senior Maintenance Worker.

Storm Drainage 955 (941) -
Utilities Delete one position (1.0 FTE - Senior Maintenance Worker) and add one position (1.0 FTE - General Repair Worker) for the Engineering and Water Resources Division. The
classification for the General Repair Worker more closely aligns with the duties required in the Logistics Tool Room as compared to the Senior Maintenance Worker.

Wastewater 1,042 (1,026) -
62 FY2025/26 Proposed Budget

Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Utilities Delete one position (1.0 FTE - Senior Maintenance Worker) and add one position (1.0 FTE - General Repair Worker) for the Engineering and Water Resources Division. The
classification for the General Repair Worker more closely aligns with the duties required in the Logistics Tool Room as compared to the Senior Maintenance Worker.

Water (1,998) 2,034 0.00
Utilities Delete two positions (2.0 FTE - Utilities Locator) and add two positions (2.0 FTE - Utilities Operations and
Maintenance [OandM] Leadworkers); and add two positions (2.0 Utilities OandM Serviceworkers) for the Wastewater and Drainage OandM Division's Homeless Encampment
Program. Current FTE in the division are used for
encampment clean up, which reduces the team's ability to maintain other regulatory requirements, citizen and council requests, and other underground infrastructure needs.

Storm Drainage (500,059) 501,820 4.00
Utilities Delete two positions (2.0 FTE - Utilities Locator) and add two positions (2.0 FTE - Utilities Operations and
Maintenance [OandM] Leadworkers); and add two positions (2.0 Utilities OandM Serviceworkers) for the Wastewater and Drainage OandM Division's Homeless Encampment
Program. Current FTE in the division are used for
encampment clean up, which reduces the team's ability to maintain other regulatory requirements, citizen and council requests, and other underground infrastructure needs.

Wastewater (44,798) - -
Utilities Delete two positions (2.0 FTE - Utilities Locator) and add two positions (2.0 FTE - Utilities Operations and
Maintenance [OandM] Leadworkers); and add two positions (2.0 Utilities OandM Serviceworkers) for the Wastewater and Drainage OandM Division's Homeless Encampment
Program. Current FTE in the division are used for
encampment clean up, which reduces the team's ability to maintain other regulatory requirements, citizen and council requests, and other underground infrastructure needs.

Water 136,634 (223,990) (2.00)
Youth, Parks, and
Community
Enrichment
Delete ten positions (4.0 FTE - Senior Recreation Aides) and add twelve Positions (0.35 FTE - Recreation Aide and eleven 0.40 FTE - Recreation Aides) in the 4th R Division. 4th R Program - 18,457 0.75
Citywide and Community
Support
Increase on-going funding for incremental increases for annual software licenses, subscriptions, system
maintenance, and technical support increases that support existing citywide business and technology systems and
applications. Ongoing software maintenance, subscriptions, and technical support are crucial for ensuring that business systems function optimally and maintain high availability.

Community
Center
- 7,607 -
Citywide and Community
Support
Increase on-going funding for incremental increases for annual software licenses, subscriptions, system
maintenance, and technical support increases that support existing citywide business and technology systems and
applications. Ongoing software maintenance, subscriptions, and technical support are crucial for ensuring that business systems function optimally and maintain high availability.

Fleet
Management
- 5,617 -
Citywide and Community
Support
Increase on-going funding for incremental increases for annual software licenses, subscriptions, system
maintenance, and technical support increases that support existing citywide business and technology systems and
applications. Ongoing software maintenance, subscriptions, and technical support are crucial for ensuring that business systems function optimally and maintain high availability.

Parking - 4,610 -
Citywide and Community
Support
Increase on-going funding for incremental increases for annual software licenses, subscriptions, system
maintenance, and technical support increases that support existing citywide business and technology systems and
applications. Ongoing software maintenance, subscriptions, and technical support are crucial for ensuring that business systems function optimally and maintain high availability.

Recycling and
Solid Waste
- 24,977 -
63 FY2025/26 Proposed Budget
Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Citywide and Community
Support
Increase on-going funding for incremental increases for annual software licenses, subscriptions, system
maintenance, and technical support increases that support existing citywide business and technology systems and
applications. Ongoing software maintenance, subscriptions, and technical support are crucial for ensuring that business systems f
unction optimally and maintain high availability.

Risk Mgmt - 115 -
Citywide and Community
Support
Increase on-going funding for incremental increases for annual software licenses, subscriptions, system
maintenance, and technical support increases that support existing citywide business and technology systems and
applications. Ongoing software maintenance, subscriptions, and technical support are crucial for ensuring that business systems f
unction optimally and maintain high availability.

Storm Drainage - 12,241 -
Citywide and Community
Support
Increase on-going funding for incremental increases for annual software licenses, subscriptions, system
maintenance, and technical support increases that support existing citywide business and technology systems and
applications. Ongoing software maintenance, subscriptions, and technical support are crucial for ensuring that business systems f
unction optimally and maintain high availability.

Wastewater - 9,261 -
Citywide and Community
Support
Increase on-going funding for incremental increases for annual software licenses, subscriptions, system
maintenance, and technical support increases that support existing citywide business and technology systems and
applications. Ongoing software maintenance, subscriptions, and technical support are crucial for ensuring that business systems f
unction optimally and maintain high availability.

Water - 29,001 -
Total Change $ (1,815,788) 3,356,325 9.75
Category
FTE
Change
Net Budget
Change
Revenues - ($200,000)
1 (1.00) (270,193)
2 (29.50) (6,199,620)
3 (160.41) (17,693,659)
4 (196.05) (33,216,355)
Citywide - (10,080,700)
Non-Categorized - (330,000)
Total (386.96) ($67,990,527)
Budget Reduction Strategies Not Chosen
The following tables include General Fund reduction strategies not included in the Budget. If the proposed $35.2 million in one-time reduction strategies are not used to balance the Budget,ongoing reduction strategies in levels 1-3 (approximately $22.1 million) and a portion of level 4 (approximately $13.1 million) would need to be used. The strategies details are listed below.

Strategies Not Chosen - General Fund
64 FY2025/26 Proposed Budget

Strategies Not Chosen – General Fund

Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Vacant FTE Filled
Revenue
City Treasurer Increase revenue in the City Treasurer's Office based on current market conditions.

General Fund (200,000) - - -
Level 1 Reduction
City Auditor Forgo Community Survey. Since 2018, the Office of the City Auditor has conducted an annual community survey to
assess residents ’ opinions on various aspects of the
community, including the economy, mobility, community
design, safety, and the natural environment. A community survey was not conducted in 2020 due to the COVID-19
pandemic. Instead, the Office of the City Auditor conducted a survey to assess the impact COVID -19 had on residents and businesses. During its review of the City Auditor’s FY2024/25 Work Plan, the City Council directed the Auditor to transition the survey to a biennial schedule. Under this new schedule, the next community survey is planned for
FY2025/26. However, if the City Council chooses to forgo the survey in FY2025/26, the City would realize a one-􀆟􀆟me cost savings of $34,000. If the City Council decides to discontinue the survey altogether, the cost savings would be ongoing.

General Fund - (34,000) - -
City Attorney Eliminate Investigator Position. This position has been vacant due to a retirement. Efforts to replace the position have been unsuccessful.

General Fund - (105,806) (1.00) -
City Attorney Additional S&S for eliminated Investigator position. General Fund - (5,000) - - City Clerk City logo merchandise and giveaways used by council offices. Service level reductions, cost burden could be shifted to council offices.

General Fund - (25,000) - -
City Clerk Discontinue ceremonial resolution processing. Service level reductions, cost and staff time burden could be shifted to council offices.

General Fund - (8,000) - -
City Treasurer Treasury Assistant: The technological solutions to many clerical activities has made this vacancy not essential at this time.

General Fund - (92,387) - -
Level 2 Reduction
City Auditor Reductions in Training and Purchases: The Office of the City Auditor has a limited non-labor budget that includes funding for services, supplies, computer purchases, travel, training, and professional membership dues. The City
Charter requires the Office to conduct audits in accordance with generally accepted government auditing standards,
which mandate that audit staff complete 80 hours of
continuing professional education every two years, with a mini
mum of 20 hours annually. To fulfill this requirement,
the Office participates in training courses and occasionally attends annual conferences hosted by organizations such as the Association of Local Government Auditors and the
Association of Certified Fraud Examiners. The proposed
$25,000 expenditure reduction for FY2025/26 is based on planned reductions in training, travel, and computer
purchases.

General Fund - (25,000) - -
City Attorney Right-size the CAO labor budget to align the position funding with the actual FTE serving in these positions.

Currently CAO is funded for five Senior DCA positions that are filled by DCA l and ll attorneys.Recruitments for senior lateral hires has become extremely difficult. It became necessary to hire new admittees and junior lawyers to fill the gap. This would make it difficult to recruit senior
experienced lateral hire attorneys because the positions would no l
onger exist.

General Fund - (359,475) - -
City Clerk Hold Vacant 1 Position, Mayor Council Staff Assistant (Receptionist). May impact greeting guests in the lobby, mail delivery, coffee/kitchen clean up.

General Fund - (72,262) - -
City Clerk Evaluate city boards and commissions annual workplans and scope. Reduce city advisory body meetings to 4 per
year and hold agenda items to core scope.

General Fund - (213,000) - -
City Clerk Kitchen supply and maintenance: coffee, tea, cups, cleaning. Service level reduction cost burden and staff time would be shifted to council offices.

General Fund - (15,000) - -
65 FY2025/26 Proposed Budget

Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Vacant FTE Filled
Level 2 Reduction (cont.)
City Clerk Council meeting catering and snacks. Service level reduction cost burden and staff time would be shifted to council offices.

General Fund - (25,000) - -
City Treasurer Treasury Analyst: Currently recruiting for two FTE's for this professional level position. One can remain vacant and
impact would be moderate. The other is critical to meet the growing needs for public financing solutions, particularly residential development and the use of CFD financings.

General Fund - (121,541) - -
Mayor/Council: Office of
Public Safety and
Accountability
Furloughs (weekly rotation): Directly aﬀects all personnel in OPSA ﬁnancially. Each team member will undergo rotation of mandatory work week furloughs throughout the ﬁscal year.

Furloughs will eliminate personnel from being laid oﬀ.

Measure U - Unknown - -
Police Eliminate the ShotSpotter program when the contract expires in June of 2025.

General Fund - (509,600) - -
Police Eliminate the Downtown Core Overtime program reducing availability of patrol units in the downtown core during peak service hours.

General Fund - (200,000) - -
Police Eliminate the Impact Overtime program reducing services from 7 days per week to 5 days per week.

General Fund - (607,244) - -
Police Delete five positions (1.0 FTE - Police Sergeant, 4.0 FTE - Police Officer) discontinuing the services of the Mounted Unit.

General Fund - (728,464) (5.00) -
Police Delete four positions (4.0 FTE - Police Officer) reducing the Magnet Academy Program to 1.0 FTE - Police Officer
position.

General Fund - (521,992) (4.00) -
Police Delete five positions (5.0 FTE - Police Officer) discontinuing the services of the Recruiting Unit.

General Fund - (652,490) (5.00) -
Police Delete eight positions (8.0 FTE - Police Officer) reducing the services of the Backgrounds Unit.

General Fund - (1,043,984) (8.00) -
Police Delete one position (1.0 FTE - Police Lieutenant) from the Personnel Services Division reducing its management team to 1.0 FTE - Police Captain and 1.0 FTE - Administrative Officer positions.

General Fund - (269,079) - (1.00)
Police Delete one position (1.0 FTE - Police Sergeant) from the Crime Prevention Through Environmental Design/Court
Liaison Unit (CPTED/CLU).

General Fund - (206,472) - (1.00)
Police Delete two positions (2.0 FTE - Police Officer) reducing the services of the Emergency Vehicle Operators Course
(EVOC) Unit.

General Fund - (260,996) - (2.00)
Police Delete one position (1.0 FTE - Police Officer) reducing the services of the K9 unit.

General Fund - (130,498) - (1.00)
Youth, Parks, and
Community
Enrichment
Delete eight positions (four 0.25 FTE - Senior Lifeguard and four 0.35 FTE - Assistant Pool Manager). Reduce
Programming in the Aquatics Division: Close all four City Wading Pools.

Measure U - (117,523) (2.50) -
Community Development Increase labor offset for the Business Compliance Unit (BCU) Night Team overtime to the established American Rescue
Plan Act (ARPA) funded project (I21000400). This is to
cover overtime costs until allocated funds are fully
expended.

Measure U - (120,000) - -
Level 3 Reduction
Mayor/Council: Office of
Public Safety and
Accountability
Layoffs (2 OPSA Investigator FTE Positions) - Directly affects the delivery of oversight and accountability services to the Police Department, Fire Department, and the public. The Police Department and the City Attorney’s Office recently hired additional staff per Council direction to achieve
compliance with Council objectives. The approved
additional personnel by Council resulted from deficiencies discovered from a 2023 public safety audit conducted by OPSA and an assessment of SPD conducted by the
California Department of Justice (DOJ). Cutting these two newly
created and filled FTEs will result in staffing
limitations to fulfill increased job duties and
responsibilities and significantly decrease productivity levels.

Measure U - (255,607) - (2.00)
66 FY2025/26 Proposed Budget

Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Vacant FTE Filled
Level 3 Reduction (cont.)
City Attorney Keep Paralegal Position Vacant. The vacancy is in our criminal prosecution division and is a high-volume case handler processing all incoming citations from the police department, this position also addresses all public records acts from the police department. The work would get re- distributed to attorneys and remaining paralegal, causing a substantial delay in responding to SPD requests.

General Fund - (137,907) - -
City Clerk City suite ticket distribution. Community
members would no longer have access to the city suite at the Golden 1 Center.

General Fund - (30,000) - -
Human Resources Delete one position (1.0 FTE - Administrative Analyst) in the Office of Diversity and Equity reducing DEI external
programming and initiatives.

Measure U - (131,518) - (1.00)
Human Resources Delete one position (1.0 FTE - Diversity and Equity Manager) in the Office of Diversity and Equity reducing internal DEI programming and initiatives.

Measure U - (198,362) - (1.00)
Police Delete two positions (2.0 FTE - Police Officer) discontinuing the services of the Marine Unit.

General Fund - (260,996) (2.00) -
Police Eliminate community support funding for the Gang Prevention and Intervention Taskforce (GPIT) grant program eliminating grant funding for community-based
organizations.

Measure U - (402,921) - -
Police Eliminate community support funding for the Evidence- Based Community Violence Interruption, Disruption, and
Suppression (EBCVIDS) grant program eliminating grant
funding for community-based organizations.

Measure U - (1,000,000) - -
Police Delete three positions (1.0 FTE - Special Projects Manager,

1.0 FTE - Administrative Analyst, 1.0 FTE - Administrative Technician) discontinuing the services of the Office of Violence Prevention (OVP).

Measure U - (387,939) (1.00) (2.00)
Police Delete four positions (1.0 FTE - Police Sergeant, 3.0 FTE - Police Officer) discontinuing the services of the Human Trafficking Unit.

General Fund - (598,966) (3.00) (1.00)
Police Delete eight positions (7.0 FTE - Police Clerk II, 1.0 FTE - Police Clerk III) from various assignments throughout the department reducing professional staff.

General Fund - (568,421) (7.00) (1.00)
Police Delete thirteen positions (13.0 FTE - Police Records Specialist I/II) from the Records division.

General Fund - (957,073) (13.00) -
Police Delete one position (1.0 FTE - Police Captain) from the Research, Development and Training (RDT) Division
reducing its management team to 2.0 FTE - Police
Lieutenants.

General Fund - (322,600) - (1.00)
Police Delete five positions (1.0 FTE - Police Sergeant, 4.0 FTE - Police Officer) discontinuing the services of the night-time traffic enforcement team.

General Fund - (717,705) (4.00) (1.00)
Police Delete ten positions (1.0 FTE - Police Sergeant, 9.0 FTE - Police Officer) discontinuing the services of the day-time traffic enforcement team.

General Fund - (1,367,384) (9.00) (1.00)
Police Delete eleven positions (1.0 FTE - Police Sergeant, 10.0 FTE - Police Officer) discontinuing the services of the Burglary Investigations Unit.

General Fund - (1,530,957) (10.00) (1.00)
Police Delete fourteen positions (2.0 FTE - Police Sergeant, 12.0 FTE - Police Officer) discontinuing the services of the Impact teams that provide operational support to the
Homelessness Incident Management Team.

General Fund - (2,020,421) (12.00) (2.00)
Police Delete seventeen positions (3.0 FTE - Police Sergeant, 14.0 FTE - Police Officer) discontinuing the services of the Problem-Oriented Policing (POP) teams.

General Fund - (2,495,883) (6.00) (11.00)
67 FY2025/26 Proposed Budget

Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Vacant FTE Filled
Level 3 Reduction (cont.)
Police Delete two positions (2.0 FTE - Police Officer) discontinuing the services of the Internet Crimes Against Children (ICAC) unit.

General Fund - (284,486) - (2.00)
Police Delete three positions (3.0 FTE - Police Officers) reducing the services of Major Collisions Investigations Unit.

General Fund - (401,560) - (3.00)
Police Delete five positions (5.0 FTE - Police Lieutenant) discontinuing the services of all Executive Lieutenant
assignments and 1 Watch Commander assignment from the
Patrol Division.

General Fund - (1,333,995) - (5.00)
Police Delete one position (1.0 FTE - Police Captain) from the Administrative Services Division reducing the division's management team to 1.0 FTE - Police Lieutenant and 2.0
FTE - Administrative Officers.

General Fund - (328,672) - (1.00)
Youth, Parks, and
Community
Enrichment
Delete one position (1.0 FTE - Park Safety Ranger Assistant) in the Park Safety Division.

Measure U - (89,176) (1.00) -
Youth, Parks, and
Community
Enrichment
Delete three positions (three 0.47 FTE - Recreation Aide) in Older Adult Services Division.

Measure U - (53,271) (1.41) -
Youth, Parks, and
Community
Enrichment
Delete one position (1.0 FTE - Customer Service Assistant) in the Older Adult Services Division.

Measure U - (70,362) - (1.00)
Youth, Parks, and
Community
Enrichment
Delete one position (1.0 FTE - Program Coordinator) Access Leisure Division.

Measure U - (88,791) - (1.00)
Youth, Parks, and
Community
Enrichment
Delete seven positions (five 1.0 FTE - Customer Service Assistant, two 0.80 FTE - Customer Service Assistant) in the Community Center Division. Reduce Community Center
paypoint locations to three hub locations.

Measure U - (502,594) - (6.60)
Youth, Parks, and
Community
Enrichment
Delete sixteen positions (0.80 FTE - Program Leader, six 1.0 FTE - Program Leader, and nine 0.20 FTE Recreation Aide) and add one position (1.0 FTE - Program Coordinator). The department would be unable to expand the days, hours and capacities in afterschool youth/teen programs and the R.E.C preschool program.

Measure U - (448,721) (1.60) (5.75)
Youth, Parks, and
Community
Enrichment
Delete fifty-three positions (five 0.20 FTE - Cashier, 0.25 FTE - Cashier, twenty-three 0.20 FTE - Lifeguard, six 0.40 FTE - Pool Manager, two 0.25 FTE - Senior Lifeguard, six

0.30 FTE - Senior Lifeguard, and four 0.35 FTE - Senior Lifeguard, and six 0.35 FTE - Assistant Pool Manager) and reduce revenue obligation by $35,308. Reduce
programming in the Aquatics Division. Reduce operating
schedules to three days per week at neighborhood pools.

General Fund 35,308 (35,308) - -
Youth, Parks, and
Community
Enrichment
Delete fifty-three positions (five 0.20 FTE - Cashier, 0.25 FTE - Cashier, twenty-three 0.20 FTE - Lifeguard, six 0.40 FTE - Pool Manager, two 0.25 FTE - Senior Lifeguard, six

Measure U - (601,048) (14.05) -
Youth, Parks, and
Community
Enrichment
Delete twenty-five positions (25.0 FTE - Park Maintenance Worker) and contract Park Maintenance Services with a
third-party vendor.

Measure U 252,666 (358,989) (3.00) (22.00)
68 FY2025/26 Proposed Budget

Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Vacant FTE Filled
Level 4 Reduction
City Auditor Freeze Vacant Position: The Office of the City Auditor experienced a 30 percent vacancy rate during FY2023/24.

Since then, the Office has conducted numerous
recruitments in an effort to fully staff the Office. As of February 2025, the Office had one vacancy left to fill – a Principal Fiscal Policy Analyst. This key position is critical to ensuring the Office’s Performance Auditing Division is successful in completing audits. Another important item to note is that with the passing of Measure L in November
2022, the Office of the City Auditor was tasked with setting the baseline funding for the Sacramento Children’s Fund and ensuring the baseline is met every fiscal year. In
addition, the Office of the City Auditor is also required to publish the audited Cannabis Business Operations Tax
Revenue. The Office did not receive
additional resources to conduct this work which effectively reduced one FTE available to conduct other audit work.

Freezing this vacant position will further reduce resources available to conduct the Office’s work.

General Fund - (196,042) - -
Information Technology Delete two positions (1.0 FTE - Senior Telecommunications Tech and 1.0 FTE - Telecommunications Tech I) supporting the Fire Communications Program. The proposed
reductions could negatively affect the Fire Department's life safety voice network and infrastructure, which includes portable radios for firefighters, mobile radios in fire vehicles, and fire station alerting dispatch.

General Fund - (298,902) - (2.00)
Information Technology Delete three positions (1.0 FTE - Systems Engineer, 2.0 FTE - IT Support Specialist II) supporting the Police Department Patrol Vehicle Technology (PVT) Program. Cuts to the
program will negatively impact the department's ability to provide essential support for PVT, including hardware such as rugged laptops, cameras, routers, and modems, ensuring all systems work smoothly for field operations, real-time communication and data exchange. This would also
impact the department's ability to support hardware
replacement, configuring equipment, managing cellular
services, troubleshooting issues, and assessing power
management.

General Fund - (438,005) - (3.00)
Information Technology Delete three positions (2.0 FTE - GIS Specialist II and 1.0 - GIS Specialist I) supporting citywide Geographic
Information System (GIS) operations. Reduction to this
program could lead to disruptions in essential services and systems across multiple departments that rely on GIS data analysis, mapping, and location-based information.

General Fund - (450,917) - (3.00)
Information Technology Delete one position (1.0 FTE - Telecommunications Engineer III) that plays a critical role in supporting the radio communication infrastructure. If this position is eliminated, the department would be unable to manage the City's
Federal Communications Commission (FCC) radio license
operations, which covers 4,620 voice radio subscribers. This would impact the Police, 911, Fire, Code Enforcement,
Utilities, Public Works, Solid Waste, and several other City departments that rely on voice communications.

General Fund - (194,894) - (1.00)
Information Technology Delete three positions (1.0 FTE - Principal Applications Developer, 1.0 FTE - Senior Applications Developer, and

1.0 FTE - Applications Developer) that supports the Citywide Content Management System (CCM/CARA) that manages
over 16 million documents. Eliminating this program could put the City at risk for legal penalties due to state and federal records retention policies. The department would also be unable to support a combination of CCM/CARA
tools and automation software that enables document
capture, management, storage, and delivery, while
automating business processes and reducing manual work.

General Fund - (484,293) - (3.00)
Information Technology Delete six positions (6.0 FTE - 311 Customer Service Agents) that supports the 311 Contact Center. After-hours and
weekend support for telephone calls and dispatching will have to be transferred back to the departments. This service reduction would require all calls offered to 311 outside of 7:00 a.m. to 7:00 p.m., Monday through Friday.

Approximately 16% of all calls or 40,000 calls per year would be routed to the respective department’s on-call
personnel. Department costs will increase to staff
appropriately for their after-hours operations.

General Fund - (591,553) - (6.00)
69 FY2025/26 Proposed Budget

Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Vacant FTE Filled
Level 4 Reduction (cont.)
Information Technology Delete two positions (2.0 FTE - IT Support Specialists II) that provide IT Service Desk support. This reduction will
significantly impact the ability to quickly resolve urgent technical issues, reducing the operational effectiveness of all departments, including public safety, increasing
downtime, and reducing productivity citywide. Departments rely on real-time, direct support to troubleshoot critical problems that hinder their ability to perform their job functions effectively.

General Fund - (320,613) - (2.00)
Police Delete two positions (2.0 FTE - Police Officer), reducing the services of the Criminal Intelligence Unit (CIU).

General Fund - (260,996) (2.00) -
Police Delete three positions (3.0 FTE - Police Officers) reducing the services of Air Operations Unit (AirOps).

General Fund - (430,627) - (3.00)
Police Delete sixteen positions (2.0 FTE - Police Sergeants, 14.0 FTE - Police Officers) discontinuing the services of both Special Weapons and Tactics (SWAT) teams.

General Fund - (2,404,848) - (16.00)
Police Delete one position (1.0 FTE - Police Lieutenant) from the Metro Operations Division reducing its management to 1.0 FTE - Police Captain and 3.0 FTE - Police Lieutenants; one of the Police Lieutenant positions is grant-funded.

General Fund - (276,512) - (1.00)
Police Delete eight positions (7.0 FTE - Police Officer and 1.0 FTE - Police Sergeant) discontinuing the services of the Special Investigations Unit (SIU) (formerly the Gang Investigations Unit).

General Fund - (1,271,644) - (8.00)
Police Delete sixteen positions (14.0 FTE - Dispatcher I/II and 2.0 FTE - Dispatcher III) from the Communications Center
limiting the department's ability to maintain mandated all answer times, coordinate timely dispatch of police
personnel, and communicate effectively with field units.

General Fund - (2,038,692) (16.00) -
Police Delete seven positions (5.0 FTE - Police Officer and 2.0 FTE - Police Sergeant) from the Violent Crime Reduction (VCR) Teams leading to a substantial decrease in services and proactive measures to combat violent crime in the City.

General Fund - (1,205,910) - (7.00)
Fire Delete 80 positions (24.0 FTE - Fire Captain, 24.0 FTE - Engineer and 32.0 FTE - Firefighter). The Department is recommending eliminating eight companies.

General Fund - (16,526,268) (5.00) (75.00)
Youth, Parks, and
Community
Enrichment
Delete seventeen positions (0.80 FTE - Custodian II, 1.0 FTE - Custodian II, 1.0 FTE - Program Supervisor, four 1.0 FTE - Program Coordinator, and ten 0.20 FTE - Recreation Aide). Reduce programming in all community centers.

Community centers would only be open four days during the week and only available for rentals on the weekends. Teen program would be eliminated from five current locations.

Measure U - (670,087) (3.00) (5.80)
Youth, Parks, and
Community
Enrichment
Delete forty-two positions (three 0.20 FTE - Cashier, two 0.25 FTE - Cashier, sixteen 0.20 FTE - Lifeguard, four 0.40 FTE - Pool Manager, two 0.25 FTE - Senior Lifeguard, eight 0.30 FTE - Senior Lifeguard, three 0.35 FTE - Senior Lifeguard, and four 0.35 FTE - Assistant Pool Manager) and reduce
revenue obligation by $182,487. Reduce Programming in
the Aquatics Division. Close all neighborhood pools and only open the three hub pools.

General Fund 182,487 (182,487) - -
Youth, Parks, and
Community
Enrichment
Delete forty-two positions (three 0.20 FTE - Cashier, two 0.25 FTE - Cashier, sixteen 0.20 FTE - Lifeguard, four 0.40 FTE - Pool Manager, two 0.25 FTE - Senior Lifeguard, eight 0.30 FTE - Senior Lifeguard, three 0.35 FTE - Senior Lifeguard, and four 0.35 FTE - Assistant Pool Manager) and reduce
revenue obligation by $182,487. Reduce Programming in
the Aquatics Division. Close all neighborhood pools and only open the three hub pools.

Measure U - (322,285) (11.25) -
70 FY2025/26 Proposed Budget

There is one reduction strategy funded by the North Natomas Community Facilities District (CDF) that is directly tied to a General Fund reduction strategy and was not included in the Budget.

Proposed Budget Augmentations Not Approved
The following tables include requested augmentations in the General Fund not approved for the Budget.

Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Vacant FTE Filled
Level 4 Reduction (cont.)
Youth, Parks, and
Community
Enrichment
Delete twenty-three positions (23.0 FTE - Park Maintenance Worker I) in the Park Maintenance Division and contract with third-party vendor for park maintenance services.

Measure U - (516,582) (1.00) (22.00)
Community Development Decrease funding for Residential Development Impact Fees for Affordable Dwelling Units Program. This reduction will impact affordable housing developments, as developers rely on the reduction of impact fees.

Measure U - (500,000) - -
Community Response Decrease funding for City Shelter Programs. Measure U - (3,816,685) - - Citywide
Citywide and Community
Support
Eliminate the Sacramento Utility Rate Assistance (SURA) Program.

Measure U - (5,400,000) - -
Citywide and Community
Support
Liquidate one-time funding in the ARPA Workforce Training Project (I02612020). Return unused dollars to fund balance.

ARPA
Reinvestment
Fund
- (3,080,700) -
Citywide and Community
Support
Evaluate city boards and commissions annual workplans
and scope. Moderate Impact. Reduce city advisory body
meetings to 4 per year and hold agenda items to core
scope.

General Fund - (1,600,000) - -
Not Categorized
City Auditor Cost Savings - Budgeted vs. Actual for FY2024/25: In addition to the proposed expenditure reductions for
FY2025/26, the Office of the City Auditor experienced
several staff vacancies during FY2024/25, leading to salary and benefit cost savings while recruitment efforts were underway. Additionally, the Office transitioned the annual community survey to a biennial schedule, making FY2024/25 the first year in which it was not conducted. As a result, the Office anticipates achieving an estimated one-time General Fund savings of $330,000. These funds can be carried forward to help offset expenditures in the City Auditor’s FY2025/26 budget.

General Fund - (330,000) - -
Total Change $ 270,461 (68,260,988) (151.81) (235.15)
Level 2 Reduction (cont.) Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Vacant FTE Filled
Youth, Parks, and
Community
Enrichment
Delete twenty-five positions (25.0 FTE - Park Maintenance Worker) and contract Park Maintenance Services with a
third-party vendor.

N Natomas Lands
CFD 3
(252,666) - - -
Total Change $ (252,666) - - -
Department
FTE
Change
Net Budget
Change
Fire - 210,684
Public Works - 1,150,000 Total - $1,360,684
Augmentations Not Approved
71 FY2025/26 Proposed Budget

Department Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Fire Add one position (1.0 FTE - Firefighter Admin). Fire EMS adding the EMS Logistic Manager Position to address its critical and growing operational needs.

General Fund - 210,684 1.00
Public Works Increase Facilities Division expense budgets to match true costs.

General Fund - 850,000 -
Public Works Increase expense budget one-time for streetscapes maintenance to support mowing twice a month and
maintain current service levels.

General Fund - 300,000 -
72 FY2025/26 Proposed Budget

5 SECTION - 5
Understanding the Budget

73 FY2025/26 Proposed Budget

74 FY2025/26 Proposed Budget

BUDGET INFORMATION

Budget Presentation
The presentation of the Budget includes both the FY2025/26 Proposed Operating Budget and the 2025-2030 Proposed Capital Improvement Program (CIP) Budget which includes the FY2025/26 CIP Budget. The Budget documents are available on the City’s website at:
www.cityofsacramento.org/finance/budget.

The Budget includes technical information concerning operating departments and estimated citywide revenues and expenses. The Forecast Section provides an outline of anticipated revenue, including an explanation of assumptions, and a five- year General Fund forecast (revenues and expenditures). The Budget Schedules include detailed information on staffing, revenue estimates, and proposed expenditures for the governmental funds, the enterprise, and other special revenue funds. The Staffing section provides a list of authorized positions for each department, by classification, including the changes in FTE.

The Budget Process
The City engaged and educated the community on the budget process and the City’s financial challenges by completing a community budget survey, conducting community meetings, and facilitating discussions at the Budget and Audit Committee (Committee) and Council meetings from February through April. The following graphic represents the City’s budget/program planning cycle:

The City’s fiscal year is July 1 through June 30. As such, the Council adopts the City's operating and capital budgets for a single fiscal year beginning July 1 and ending June 30 in the subsequent calendar year.
75 FY2025/26 Proposed Budget

To establish the annual budget, the Budget, Policy and Strategic Planning Division of the Finance Department, in coordination with the City Manager and the City’s operating departments, develops a proposed revenue and expenditure plan for the coming fiscal year. The existing approved expenditure plan is carried over from the prior year and:

• Labor costs are updated to reflect current salaries, minimum wage changes and adjustments for taxes as well as salary and benefit changes called for in union contracts. Estimates are also established for unrepresented employees. • Cost Plan allocations which reimburse the General Fund for support provided to the enterprise funds are updated based on services (accounting, budget, facility maintenance, human resources, information technology [IT], payroll as well as Council and Charter Offices) provided.
• Debt service is updated to reflect the actual payments required. • Fleet (City vehicles) expenditures including vehicle acquisition, fuel, operations and maintenance, and motor pool are updated based on established replacement schedules, prior year actual costs/usage and anticipated cost increases. • General Liability and Auto Liability insurance costs are updated based on annual experience and exposure cost allocation studies in accordance with the adopted Risk Management Funding and Reserve Policy.
• Retiree health care costs and pension payments for the Sacramento City Employees’ Retirement System (SCERS) are updated based on actuarial reports.

Departments are also provided with an opportunity to request budget changes to address ongoing initiatives like repair and replacement of aging equipment and infrastructure, utilities, and staffing needs. These requests are submitted and reviewed by the Ci ty Manager’s Office. A summary of budget modifications is outlined in the Budget Modification Section.

A five -year revenue model has been developed based on prior year actual revenue receipts and economic and revenue indicators to determine what resources, tax revenues, and other discretionary revenues will be available to support operating requirements. Detailed information on the revenue forecast, including estimated ongoing impacts of the pandemic, is included in the Forecast Section. Capital improvement programs and projects are identified and funded with available General Funds, enterprise funds, internal service funds, grants, transportation, and other funding sources as identified in Schedule 4 and detailed in the 2025-2030 CIP.

Council Priorities
On February 14, 2017, the Council adopted the following Core Budget Policies and Guidelines (Resolution 2017-0078) for the annual budget. 76 FY2025/26 Proposed Budget

Financial Management Policies
The City of Sacramento develops its annual budget according to Council-adopted sustainable budget policies. These policies call for one-time funding sources to only be used for one-time operating and capital expenditures. Ongoing expenditures are to be matched with ongoing financing sources. Reserves are to be used in a planned and strategic manner. The five-year forecast for the General Funds will be updated as new information becomes available. Full reviews of revenue receipts in comparison to the budgetary estimates are performed and corrective actions recommended, if necessary.

The ongoing core of the Council’s budget philosophy continues to be sustainability. The Council has adopted the following financial management policies that guide the development of the Budget, financial decision making, and fund management. These policies are included in the Financial Policy Section of the document.
• Budget Control
• Debt Management and Debt Management Disclosure
• Development Stabilization Contingency Reserve (DSCR) and Development Services Fund Management

1. City Council must adopt a balanced budget.

2. Funding decisions should be consistent with Council adopted policies.

3. The Economic Uncertainty Reserve shall be maintained at a minimum of 10% of budgeted General Fund revenues. Resources shall be added to maintain this level through the budget and midyear processes as necessary.

1. Maintain a fiscally sustainable, balanced budget.

2. The Mayor and Council’s priorities, based on community input, should drive the budget creation.

3. Continue a community-based budget process where city residents are engaged and educated on budget processes and provide feedback on budget priorities.

4. Look for ways to grow the reserve beyond its current goal.

5. All budget actions must be considered in a five-year context, with new revenues not counted or spent until realized. One-time resources should be used for one-time needs, not ongoing expenses.

6. Do not make spending decisions in isolation. Avoid spending money on one-off projects or without looking at the big picture. Understand long-term consequences and opportunity costs.

7. Keep Council informed on the fiscal condition of the City and conduct continuous evaluations for efficiencies and effectiveness.

8. The City must consistently look for opportunities to proactively grow revenues instead of being reactive.

9. Make every effort to identify private financing or federal and state grant opportunities before using City resources. Pursue new and enhance existing revenue sources.

10. Before new expenditures are made, identify return on investments and impacts; fiscal and social benefits.

11. Address unfunded long-term liabilities.

12. Remain a full-service city.

Budget Guidelines
Core Budget Policies
77 FY2025/26 Proposed Budget

• Emergency Medical Services (EMS) Revenue Recovery and Fee Waiver • Fees and Charges
• General/Measure U (G/MU) Fund Economic Uncertainty Reserve (EUR) Policy • Interfund Loans
• Investment
• Other Post-Employment Benefits (OPEB)
• Pension Funding
• Prior Year Savings Guideline Policy
• Risk Management Funding and Reserve
• Sacramento City Employees’ Retirement System (SCERS) Investment

Performance Measurement
A performance management program is an important tool in city management. It offers a method of measuring the success of programs and activities in achieving outcomes that reflect public priorities. The establishment and evaluation of performance metrics and business improvement activities will serve to inform operational and strategic decision- making throughout the organization. As a management tool, it will aid in evaluating how well programs are providing quality services.

The National Performance Management Advisory Commission’s “ A Performance Management Framework for State and Local Government,” provides a model for public sector performance management based on seven key principles, which can be applied to local government planning, budgeting, management, and evaluation to bring together critical processes and decision making to improve results. The seven principles ensure that:

1. A results focus permeates strategies, processes, the organization culture, and decisions. While compliance with prescribed processes can assure fairness, fiscal integrity, or adherence to the law, it does not necessarily result in substantial benefits to the public. Performance management assures that the organization’s culture and processes are aligned with the goals the organization wishes to achieve.

2. Information, measures, goals, priorities, and activities are relevant to the priorities and well-being of the government and the community . To achieve results, an organization must first establish goals and performance targets that are relevant to stakeholders. It then must ensure that all levels of the organization (e.g., policy makers, managers, staff, and others) understand how to implement performance management tools that will achieve those goals.

3. Information related to performance, decisions, regulations, and processes is transparent, i.e., easy to access, use, and understand. The transparency (i.e., completeness, organization, and understandability) of performance information is critical to fostering evidence-based planning, budget, and decision making.

78 FY2025/26 Proposed Budget

4. Goals, programs, activities, and resources are aligned with priorities and desired results. Effective performance management systems ensure alignment among an organization’s goals, priorities, programs, activities, resources, and desired results.

5. Decisions and processes are driven by timely, accurate, and meaningful data. Collecting, storing, and applying performance data is essential to tracking and understanding results.

6. Practices are sustainable over time and across organizational changes . “Performance management is not an event, a program, or a quick fix…” Efforts must be sustainable, flexible, and adaptable enough to keep up with inevitable changes, whether those changes take place within the organization’s leadership or the community in which the organization is located.

7. Performance management transforms the organization, its management, and the policy-making process. An organization that has been truly transformed by performance management uses evidence- based planning and management, objective goal setting, and alignment of its structure, systems, and resources to achieve its desired results.

The City has been working on performance management with departments to identify measures that address these principles. While department sections include a few key measures, there are many additional measures being tracked citywide. The City Manager’s Office directly oversees this program and is working on strengthening existing measures and adding measures that are important to the Council, our community, and the operating departments/management.

79 FY2025/26 Proposed Budget

FINANCIAL INFORMATION
Budget Basis
The City’s annual budget is prepared on a modified accrual basis of accounting.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.

Property taxes, franchise taxes, licenses, intergovernmental revenue, special assessments, charges for services, and interest associated with the current fiscal period are all considered to be susceptible to accrual, and so have been recognized as revenues of the current fiscal period. All other revenue items are considered measurable and available only when cash is received by the government.

Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Budgets are modified throughout the year when the tax base changes, fees are modified, new revenue sources are identified, or programs are changed. The City Manager is authorized to administratively amend the budget during the year for transactions less than $250,000 without Council approval. All other appropriation adjustments during the year require Council approval. Unencumbered annual budget appropriations lapse at fiscal year-end except as specifically identified in the annual budget resolution. Multi -year budget appropriations are automatically carried over into the next fiscal year.

Fund Structure
The City uses fund accounting to assure and demonstrate compliance with finance- related legal requirements. A fund is defined as a separate accounting entity with a self - balancing set of accounts recording cash and other financial resources together with related liabilities. Each fund was established for the purpose of accounting for specific activities in accordance with applicable regulations, restrictions, or limitations. The City has three types of funds:
• Governmental Funds  Account for activities which are primarily supported by taxes or other mandatory payments. Most of the City’s basic services are included in governmental funds. There are three categories of Governmental Funds:
o The General Fund is the primary operating fund of the City and accounts for all financial resources except for those that are required to be accounted for in separate funds. Sources of General Fund revenues include taxes, licenses, permits, fees, fines, intergovernmental revenues, and charges for services, 80 FY2025/26 Proposed Budget

special assessments, interest income, and other resources available for discretionary funding.

The General/Measure U Fund EUR was established to provide resources for the Mayor and Council to manage the impact of economic fluctuations that negatively impact the City’s revenues.
- April 26, 2016 – Council-adopted the General Fund EUR Policy (Council Motion 2016-00440) establishing a minimum reserve level equal to 10% of annual General Fund revenues and a target reserve level equal to two months of regular ongoing General Fund expenditures, including transfers (17% of General Fund expenditures). Resources to fund this reserve will be identified on an ongoing basis and can include positive year-end results or other one- time resources available to the General Fund.
- February 5, 2019 – Council adopted the General/Measure U Fund EUR Policy (Resolution 2019- 0248) adding the Measure U Fund to the original EUR Policy.
o The Measure U Fund was established to account for revenues collected from the half-cent transactions and use tax approved by voters on November 6, 2012.

On November 6, 2018, the voters approved a change to Measure U, increasing the tax to one cent. Measure U was approved as a general tax and can be used for any general government purpose. This tax is charged on each dollar of taxable sales of goods purchased from retailers within the City of Sacramento, and on the taxable storage, use, or consumption of goods purchased outside the city and delivered to a location within the city.
o Other Governmental Funds include:
- Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. These funds are generally required by statute, charter, or ordinance to finance specific governmental functions.
- Debt Service Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest, or that are being accumulated for principal and interest maturing in future years.
- Capital Projects Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for governmental capital assets.
• Proprietary Funds
 Account for services for which customer fees are intended to finance the costs of operations. There are two types of Proprietary Funds:
81 FY2025/26 Proposed Budget

o Enterprise Funds account for programs and services financed and operated similar to business-type activities which include services rendered to the general public on a fee basis.
- Community Center Fund accounts for the operation and maintenance of the City’s Convention Center Complex, including the Convention Center Theater, Memorial Auditorium, and the Community Center. - Parking Fund accounts for the operation and maintenance of five City parking garages and 39 surface parking lots (including lots owned by the State of California and numerous private owners).
- Solid Waste Fund accounts for the collection and disposal of refuse throughout the City and for landfill closure.
- Storm Drainage Fund accounts for the operation and maintenance of the City’s surface drainage system.
- Wastewater Fund accounts for the operation and maintenance of the City’s wastewater system.
- Water Fund accounts for the operation and maintenance of the City’s water treatment and water transmission and distribution systems. o Internal Service Funds, i.e., the City’s Fleet Fund and Risk Management Fund, account for the activities that provide services delivered by one department to another department on a cost reimbursement basis.
• Fiduciary Funds  Account for activities that most closely resemble not -for-profit organizations, including trusts and agency activities. The City is:
o The trustee, or fiduciary, for its closed (effective January 1977) defined benefit pension plan – Sacramento City Employees’ Retirement System (SCERS). o Responsible for other assets, held on behalf of investors, in the City’s investment pool and individual investment accounts.
o Responsible for the assets received by the Successor Agency from the City’s former Assembly Bill X1 26 which dissolved redevelopment agencies in California.
o The agent for bonded assessment and community facilities districts and responsible for ensuring the assets reported in these funds are used for their intended purposes.

Annual budgets are adopted for the governmental f unds, enterprise funds, special revenue funds, and internal service funds. Expenditures are appropriated on a modified accrual basis, except the commitments related to purchase orders and contracts are treated as expenditures in the year of commitment.
82 FY2025/26 Proposed Budget

83 FY2025/26 Proposed Budget

HOW TO READ THIS DOCUMENT

The Budget for each department is presented in a format that includes the following:

• Department mission statement (if available)
• Budget/staffing changes
• A department level budget summary table showing budget for:
− FY2022/23 Actuals
− FY2023/24 Actuals
− FY2024/25 Approved Budget
− FY2024/25 Amended Budget (as of February 2025)
− FY2025/26 Proposed Budget
− Variance
The summary table shows for each year:
− Budgeted expenditures by category
− Funding sources and amounts
• A division level summary budget table:
− FY2022/23 Actuals
− FY2023/24 Actuals
− FY2024/25 Approved Budget
− FY2024/25 Amended Budget (as of February 2025)
− FY2025/26 Proposed Budget
− Variance

• A division level summary staffing table:
− FY2022/23 Actuals
− FY2023/24 Actuals
− FY2024/25 Approved Budget
− FY2024/25 Amended Budget (as of February 2025)
− FY2025/26 Proposed Budget
− Variance

84 FY2025/26 Proposed Budget

Department Budget Summary Table
The Budget for each department is compared with the prior year amended. A sample is as follows:

Column 1 – FY2022/23 actual expenditures by category and funding amounts by source.

Column 2 – FY2023/24 actual expenditures by category and funding amounts by source.

Column 3 – FY2024/25 Approved Budget by category and funding amounts by source.

Column 4 – FY2024/25 Amended Budget by category and funding amounts by source (as of February 2025).

Column 5 – FY2025/26 Proposed Budget by category and funding amounts by source.

Column 6 – The budget change between the FY202 5/26 Proposed and the FY2024/25 Amended budget.

Change
Human Resources FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More /(Le ss) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 11,535,813 $ 12,386,859 $ 13,686,163 $ 13,686,163 $ 13,232,992 $ (453,171) Other Services and Supplies 63,501,837 64,746,701 61,274,543 60,977,543 72,163,702 11,186,159 City Property 67,296 11,247 43,200 43,200 43,200 -
Multi-Year Operating Projects - - 182,250 182,250 102,250 (80,000) Transfers (82,847) (246,798) - - (99,342) (99,342)
Labor and Supply Offset 3,398,354 2,450,391 1,863,295 2,160,295 2,862,292 701,997 Total $ 78,420,453 $ 79,348,400 $ 77,049,451 $ 77,049,451 $ 88,305,094 $ 11,255,643 Change
FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More /(Le ss) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $ 4,219,935 $ 4,712,084 $ 5,643,675 $ 5,643,675 $ 4,804,054 $ (839,621) Interdepartmental Service 1,725,737 1,664,044 1,763,967 1,763,967 1,781,869 17,902 Measure U 499,655 481,252 503,285 503,285 432,127 (71,158) Marina - 4,811 4,000 4,000 - (4,000)
Parking - 4,811 4,000 4,000 - (4,000)
Recycling and Solid Waste 150,087 152,226 168,606 168,606 175,965 7,359 Fleet Management 59,614 14,433 16,000 16,000 - (16,000) Risk Mgmt 25,969,628 51,460,096 50,031,693 50,031,693 60,157,009 10,125,316 Worker's Compensation Fund 45,795,797 20,854,643 18,914,225 18,914,225 20,915,250 2,001,025 Cty/Cnty Office-Water Planning - - - - 38,820 38,820
Total $ 78,420,453 $ 79,348,400 $ 77,049,451 $ 77,049,451 $ 88,305,094 $ 11,255,643 85 FY2025/26 Proposed Budget

Division Budget Summary Table
The Division Budget Summary table shows proposed expenditures for each division in the department. The tables look like the one below:

Column 1 – FY2022/23 actual expenditures by division.

Column 2 – FY2023/24 actual expenditures by division.

Column 3 – FY2024/25 Approved Budget by division.

Column 4 – FY2024/25 Amended Budget by division (as of February 2025).

Column 5 – FY2025/26 Proposed Budget by division.

Column 6 – The budget change between the FY202 5/26 Proposed and the FY2024/25 Amended Budget.

Change
Human Resources FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More /(Le ss) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended HR Administration Division $ 1,619,354 $ 1,724,756 $ 2,338,888 $ 2,338,888 $ 1,983,806 $ (355,082) Benefit Services Division 1,214,386 1,203,015 1,300,438 1,300,438 1,223,392 (77,046) Employment, Classification and Development Divison 1,918,039 2,051,962 2,200,218 2,200,218 1,961,225 (238,993) Risk Management Administration Division 68,596,996 68,947,834 65,132,325 65,132,325 77,052,675 11,920,350 Workers' Compensation Division 2,855,472 3,083,064 3,519,916 3,519,916 3,595,914 75,998 Labor Relations Division 1,716,481 1,856,449 2,054,381 2,054,381 2,096,710 42,329 Office of Diversity and Equity Division 499,725 481,321 503,285 503,285 391,373 (111,912) Total $ 78,420,453 $ 79,348,400 $ 77,049,451 $ 77,049,451 $ 88,305,094 $ 11,255,643 86 FY2025/26 Proposed Budget

Staffing Levels Summary Table
The Staffing Levels Summary table shows proposed Full-Time Equivalent (FTE) positions for each division in the department. The tables look like the one below:

Column 1 – FTEs by division in FY2022/23.

Column 2 – FTEs by division in FY2023/24.

Column 3 – FTEs by division in the FY2024/25 Approved Budget.

Column 4 – FTEs by division for the FY2024/25 Amended Budget (as of February 2025).

Column 5 – FTEs by division as Proposed for FY2025/26.

Column 6 – The budget change in FTEs by division between the FY202 5/26 Proposed and the FY2024/25 Amended Budget.

Change
Human Resources FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More /(Le ss) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended HR Administration Division 9.00 9.00 9.00 9.00 7.00 (2.00) Benefit Services Division 9.00 9.00 9.00 9.00 8.00 (1.00) Employment, Classification and Dev Divison 15.00 15.00 15.00 15.00 13.00 (2.00) Risk Management Administration Division 17.00 17.00 17.00 17.00 17.00 - Workers' Compensation Division 19.00 19.00 19.00 19.00 19.00 - Labor Relations Division 11.00 11.00 11.00 11.00 11.00 - Office of Diversity and Equity Division 3.00 3.00 3.00 3.00 2.00 (1.00) Total 83.00 83.00 83.00 83.00 77.00 (6.00)
87 FY2025/26 Proposed Budget

88 FY2025/26 Proposed Budget

6 SECTION - 6
The Forecast
89 FY2025/26 Proposed Budget

90 FY2025/26 Proposed Budget
Proposed Financial Forecast
Financial Forecast
The financial forecast is a fiscal management tool that evaluates current and future fiscal trends and presents estimated information based on past, current, and projected financial conditions. This tool helps identify future revenue and expenditure trends that may have an immediate or long-term influence on Council's policies, strategic goals, and community programs and services.

General and Measure U Funds Overview
This section includes a five-year forecast for the General Fund (General and Measure U Funds combined), a separate forecast for the Measure U Fund and the City’s Enterprise Funds. The information in these forecasts provides a current picture of the fiscal condition of the funds, establishing an important context to the decision- making necessary to maintain both essential community services and fiscal stability.

In Febr
uary 2025, the City released its updated financial forecast which projected a $62.2 million funding gap for FY2025 /26 with deficits increasing annually throughout the forecast period and reaching over $130 million by FY2028/29:

Februar
y 2025 Forecast
The f
orecast did not assume an economic downturn and highlighted a fundamental imbalance in the City’s budget with expenses outpacing revenues. This imbalance is known as a structural deficit.

The st
ructural deficit is not the result of an economic downturn but is the result of decisions that the City and voters have made over the past few years along with 91 FY2025/26 Proposed Budget
macroeconomic forces such as inflation. These decisions include expanding into new service areas, increased costs of new labor contracts, increasing staffing levels, and bal
lot measures redirecting general revenues for specific purposes. In many cases, f
ederal aid to assist local governments mitigate COVID-19 pandem ic impacts allowed the City to fund these cost increases, however, the federal funding was one-t ime while many of the increased costs are ongoing.

The B
udget addresse s the City’s structural deficit by taking a strategic approach to conduct revenue enhancements and expenditure reductions instead of simply pursuing acr
oss-the-board cuts. Proposed solutions to close the $62.2 m illion funding gap include a combination of one-time and ongoing strategies with $34.6 million in ongoing reduction strategies and $35.2 million in one-ti me solutions. While the ongoing reductions helped decrease the deficits in future fiscal years, they did not close the entire gap.

The Fi
ve-Year General Fund Forecast
Given Council’s sustainable budget policy, proposed fiscal acti ons are evaluated in both a short an d longer-term context. The five -year forecast is a ke y tool in the City’s l ong- range financial p lanning process, pr ovidi ng a multi- year vi ew of r evenues an d expenditures, allowing an assessment of the fiscal co nsequences of bot h prior and current fun ding decisions in the context of f orecasted revenues and expenditures.

The five-year f orecast is developed during the annual budget process based on the most recent national, State, regional and local economic data, trends, and changes in both economic conditions and anticipated future revenues trends. Updated cost estimates are also a key component of the long- range forecasting process. This allows the City to identify potential challenges and make course corrections through budget and operational adj
ustments. In addition, if there are significant changes to either revenues and/or exp
enditures during the year, outside of the budget or quarterly reviews, the impact of those changes will be reported to Council as soon as practicable.

The Budget is balanced; however, the City continues to face a structural deficit with expenses outpacing revenue growth in future fiscal years . While t he recommended reduction strategies help close the funding gap in FY2025 /26, these efforts do not completely fill the gaps in future fiscal years. The current five-year forecast i s presented below.
92 FY2025/26 Proposed Budget
Addi
tional challenges in the General Fund forecast are detailed below:
• California Public Employees’ Retirement System (CalPERS) unfunded liability costs will increase by $25.7 million (26.9%) over the next four years. • Liability insurance premiums are estimated to increase by $32.7 million (69%) over the next four years.
• Uncertainty with future labor costs. Ten of the elev en labor contracts will end before the clos e of FY2025/26 with one labor contract alr eady expired. The forecast does not include future increases for COLAs or health insurance. • Approximately $1.8 billion in unfunded capital needs between 2025 and 2030 are not included in the forecast. Unfunded capital needs consis t of the maintenance and repairs of existing City facilities and assets and the purchase of new assets required to maintain a consistent level of service to City residents. • Homeless services will cost approximately $195 million over the next four years and future State funding may not be allocated to the City as the Governor did not include an additional round of HHAP program funding in his January Budget proposal.

With the exception of future labor contract increases and unfunded capital needs , estimates for the above challenges have been included in the forecast as presented. 5-Year Forecast
General Fund ($ in 000s)
FY2025/26
Proposed
FY2026/27
Projection
FY2027/28
Projection
FY2028/29
Projection
FY2029/30
Projection
BEGINNING AVAILABLE FUND BALANCE 12 962 - - -
Revenues
Revenues 839,806 852,907 870,658 886,400 901,934 Other Sources 16,537 15,488 15,181 15,407 15,637 Total Revenues/Resources 856,343 868,395 885,838 901,806 917,571 Expenditures
Department Operating, Debt, and MYOPs 837,080 868,626 896,549 930,516 950,758 Capital Projects 15,835 15,740 15,211 15,191 15,191 Federal Funding Loss Contingency 4,238 - - - - EUR Contribution - 4,394 4,530 4,698 4,798 Total Expenditures/Uses 857,152 888,759 916,289 950,405 970,747 Surplus/(Deficit) (810) (20,365) (30,451) (48,599) (53,176) Other Sources/(Uses)
Reserve for Future Budget Development (FY2023/24) 26,807 - - - - FY2024/25 Vacancy Factor 6,466 6,596 6,728 6,862 6,999 Total Other Sources/(Uses) 33,273 6,596 6,728 6,862 6,999 Voter-Approved Spending
Measure L (9,329) (9,329) (9,329) (9,329) (9,329) Total Voter-Approved Spending (9,329) (9,329) (9,329) (9,329) (9,329) Surplus/(Deficit) with Other Sources 23,135 (23,098) (33,052) (51,065) (55,505) Homeless Services
General Fund Support 13,119 11,507 11,555 11,604 11,653 Homeless Housing, Assistance, and Prevention Program (HHAP-6) 12,896 - - - - Homeless Services Programming (48,201) (48,304) (48,408) (48,892) (49,381) Total Homeless Services (22,185) (36,797) (36,853) (37,288) (37,728) Surplus/(Deficit) with Homeless Services 950 (59,894) (69,905) (88,354) (93,233) ENDING AVAILABLE FUND BALANCE WITH HOMELESS SERVICES 962 (58,932) (69,905) (88,354) (93,233) 93 FY2025/26 Proposed Budget
General Fund Revenues
The City’s General Fund revenues continue to experience growth across most revenue sources. The following table highlights the top three General Fund revenue sources representing over two-thirds of all General Fund revenues.

The chart below provides a five -year year look back and forecast of General Fund revenue growth. Property tax and sales tax continue to be the main catalyst for revenue growth within the City. G eneral Fund revenues are projected to increase by 39% from FY2019/20 through the term of the forecast in FY2029/30.

Property Tax
Property taxes account for 30% of all General Fund revenues. Revenues related to property taxes are affected by fluctuations in the real estate market, levels of new construction activity, and the corresponding changes to the assessed value of those properties on the tax roll.

Revenue Source ($ in 000s)
FY2024/25
Amended
FY2025/26
Proposed
FY2026/27
Projected
FY2027/28
Projected
FY2028/29
Projected
FY2029/30
Projected
Property Tax 249,069 256,130 263,014 270,123 277,461 285,036 Sales Tax 235,660 236,843 241,473 249,386 254,765 259,634 Utility User Tax 70,444 67,802 68,141 68,482 68,824 69,168 Other Revenue 259,467 279,031 280,278 282,668 285,349 288,095 Total General/Measure U Revenue 814,641 839,806 852,907 870,658 886,400 901,934 94 FY2025/26 Proposed Budget

Mortgage rate predictions for 2025 indicate slight declines compared to the first half of 2024, which could positively impact the real estate market and improve affordability for buyers. As of February 2025, the Mortgage Bankers Association is forecasting the average 30-year fixed rate mortgage to be about 6.5% by the last quarter of 2025. As of March 2025, Fannie Mae is projecting a slightly lower rate, at about 6.3%. According to the Sacramento Business Review January 2025 Report, there is solid demand for homebuying in the region, but it is heavily supported by mortgage rate buydowns and other incentives common to new home supply. As a result, Sacramento’s new home market continues to outperform its resale market. However, resale listings grew throughout 2024 and are now up year-over-year, similar to many major housing markets across the country. Other sectors of real estate, including industrial, office, and retail, continue to be relatively stable.

Overall Real Estate Activity for the Sacramento Region

Data compiled by the Sacramento Association of Realtors.

From February 2024 through February 2025 , the Sacramento Association of Realtors reported the cost of housing per square foot in the Sacramento region increased from $333 to $339 and the median home price increased from $540,000 to $550,000. Fannie Mae expects both new and existing home sales volumes to increase by 2.8% and 4.4% respectively in 2025 across the nation. The peak first-time homebuying age for Millennials also continues for a few more years, contributing to sustained demand. Notably, the Category 2/2025 vs. 2/2024
% Change
Average Price per Square Foot 1.8%
Median Sales Price 1.9%
Average Days on Market 12.1%
Months of Inventory 82.4%
For Sale 61.6%
Sold -12.0%
95 FY2025/26 Proposed Budget

Sacramento Association of Realtors reported an increase in average days on market and in months of inventory year -over-year. While the regional market is still considered a seller’s market, these developments suggest a shift toward more balance, providing buyers with more options.

Total assessed value for Sacramento County’s FY2024 /25 secured and unsecured roll surpassed $231 billion, an increase of 5.2 % countywide. Additionally, the Sacramento County Assessor’s (Assessor) 2024 Annual Report and monthly reports have highlighted positive barometers for the City as follows:

• Total gross assessed value of secured/unsecured properties in the City grew 4.9% from FY2023/24 to FY2024/25.
• City properties with Proposition 8 assessments (temporary reduction in property taxes due) decreased from 2,910 in April 2024 to 2,820 in April 2025, a 3.1% decrease. However, the total value of those assessments increased by $616.4 million.

The table below illustrates the assessed roll value that remains to be restored as a result of the housing crash during the Great Recession. Restoration of Proposition 13 values happens annually, while reductions as the result of Proposition 8 appeals can be applied to the tax roll at any time during the year. Therefore, the reduction in pending appeals limits the City’s exposure to a reduction in roll value.

Summary of Proposition 8 Assessments by Land Use

In December 2024 , the California State Board of Equalization directed the Assessor to apply the full 2% inflation factor (CCPI – California Consumer Price Index) to property values for taxation. Because the Assessor does not complete work on the tax roll until after the Budget is adopted, the forecast for property tax revenues is based on the Assessor’s “work in progress” and will be re-evaluated when final information is received in July. The property tax secured roll forecast for FY2025 /26 is 5.8% higher than the FY2024/25 Approved Budget , which included 2.3% growth over FY2023 /24 actuals.

Estimates over the term of the forecast include 3% from FY2026/27 through FY2029/30, assuming the application of the full 2% for the Proposition 13 growth factor and that Proposition 8 properties will continue to be restored to their Proposition 13 values on the tax roll over time.

Consistent with current Council budget guidelines, property tax growth in the former redevelopment areas accrues to the Innovation and Growth Fund (IGF). In FY2024/25, Property Type Proposition 8 Propos ition 13 % of Full Value Commercial 2,520,604,857 3,627,502,616 69.5%
Single-Family Residence 460,329,051 522,183,396 88.2%
Multi-Family Residence 811,529,222 965,421,139 84.1%
Industrial 181,531,234 209,677,501 86.6%
Others 79,383,877 99,220,208 80.0%
City Total 4,053,378,241 5,424,004,860 74.7%
96 FY2025/26 Proposed Budget

the amount required for the possessory interest tax paid on the Golden 1 Center was shifted from IGF to Transient Occupancy Tax resources for the associated debt service.

This shift is continuing into FY2025/26.

Property Tax In-Lieu of Vehicle License Fees (VLF)
The State’s 2004 property tax for VLF swap permanently reduced the VLF rate from 2% to 0.65%, shifted the VLF revenue to the State General Fund to make up for reduced property taxes to schools and shifted property taxes from the school share to property tax in-lieu of VLF to cities/counties. The Sacramento County Audit-Controller Division provided updated information in late 2024 for FY2024/25 collections and indicated the City would receive an increase of 5.1% in estimated revenues when compared to FY2023/24 collections. After revising the FY2024 /25 base upward by $0.7 million , 3% growth was applied to the new baseline in FY2025/26, with 3% annual growth in over the term of the forecast.

Property Transfer Tax and Supplemental Property Tax
The real property transfer tax is a charge imposed by the City upon the passing of title from one owner to another. The City charges $2.75 for every $1,000 of the property’s sale price (0.00275%). This revenue stream has fluctuated significantly , ranging from as low as $4.4 million in FY2010/11 during the Great Recession to as high as $1 9 million in FY2021/22. The supplemental property tax is a charge generated when a property is reassessed due to a change in ownership (a sale, transfer, or transfer of frac tional interest) or as a result of new construction. The supplemental tax bill reflects any increase or decrease in property tax generated by the supplemental event.

These two sources of revenue can be volatile, fluctuating with housing market activity, ranging from a combined low of $4.6 million in FY2010/11 to a combined high of $27.7 million in FY2005/06. During the first eight months of FY2024/25, real estate transactions increased by 6.1%, and the value of those transactions increased by 29.2% when compared to the same period in the prior year. Despite these gains year -over-year, it is worth noting that the number of transactions is still down 9.9% compared to the first eight months of FY2022/23 and 46.1% compared to the first eight months of FY2021/22. While inflation has eased, the benchmark 10-year Treasury yield remains elevated, and rates on 30-year fixed-rate mortgages are still hovering around 6- 7%. Buyers are reluctant to complete transactions, and sellers are generally not rushing to sell if they are locked in lower interest rates and have few options for an affordable mortgage upon the sale of their current property. Transfer tax revenues are expected to be flat over the term of the five-year forecast, while supplemental tax revenues are expected to decrease by 5% annually over the term of the five-year forecast. Higher interest rates, increased housing supply, and inflationary factors continue to weigh heavily on the real estate market.

The following graph reflects the significant effect the Great Recession had on these revenue sources and the gradual rebound since then. Given the volatility of these revenues, it is especially important to be aware of market trends and adjust the forecast early should overall sales volume and price decrease dramatically. 97 FY2025/26 Proposed Budget

Sales Tax
General Sales and Use tax is imposed on all retailers for the privilege of selling tangible personal property in the state, whereas use tax is imposed on the purchase for storage, use, or other consumption of tangible personal property purchased from any retailer within the City. These taxes are collectively referred to as sales taxes. The General Fund receives only 2 cents of every 8.75 cents of sales tax paid per dollar, of which 1 cent is allocated to the General Fund and 1 cent is allocated to the Measure U Fund as approved by voters in November 2018. Sales taxes account for 28% of all General Fund revenues, of which 12% is allocated to the General Fund and 16% is allocated to the Measure U Fund. The Measure U sales tax is a higher percentage of overall General Fund revenue than the general sales tax because it is a destination- based tax, meaning it is applied to transactions based on the buyer’s location rather than the seller’s location. Sales tax revenues were minimally impacted during the pandemic as consumers shifted their purchasing power away from brick and mortar retail and to ward online sales. The table below lists the percentage breakdown of each economic segment of the sales tax forecasted in FY2025/26.

General Retail 23.8%
Food Products 19.2%
Business to Business 18.7%
Transportation 16.1%
Construction 11.9%
County Pool 6.9%
Miscellaneous 3.4%
Total 100.0%
General Fund Sales Tax Breakdown
by Economic Segment
98 FY2025/26 Proposed Budget

Nationally, inflation peaked at a 40- year high of 9.1% in June 2022. As of March 2025, inflation is about 2.4%. Although this is only slightly higher than the Federal Reserve’s 2% inflation target, there is much economic uncertainty ahead as 2025 unfolds. In March 2025, UCLA Anderson Forecast announced a recession watch due to three main areas of concern over the federal government’s recent initiatives: 1) the tariff policy and ensuing trade wars; 2) the spending cuts to federal contractors and grant recipients; and 3) workforce shortages in the construction and agriculture sectors. The uncertainty surrounding these policies in and of itself is damaging to the economy and exacerbated by any potential decline in the financial sector, in which many normal Americans have invested their retirement plans and other assets. The downstream effects of these national events may have an impact on Sacramento households, which may respond to these economic pressures by reducing spending, which would exert downward pressure on sales tax revenues.

The California vehicle market was essentially flat in 2024, with new car registrations down

0.3% and used car registrations down 0.2% compared to 2023. Vehicle affordability continues to be an issue and may worsen as the country experiences more of the effects of the tariffs on Canadian and Mexican auto imports. S&P Global recently estimated that about 22% of all vehicles sold in the United States are imported from Canada and Mexico, and tariffs on these vehicles would increase the prices consumers pay for them.

Additionally, recent increases in energy prices will create upward pressure on taxable items via increased transport costs. These trends could further reduce disposable income for restaurants and retail purchases.

Avenu Insights & Analytics (Avenu), the City’s sales tax consultant, projected a 1. 1% decrease in sales tax revenues in FY2024 /25. Based on Avenu’s forecasting, the City anticipates that total sales tax revenues will increase by 0.5% in FY2025 /26 before then growing by about 2.2% annually through FY2029/30. Over the past few years, sales tax revenues have been affected by a variety of unusual factors including but not limited to the following: the COVID-19 pandemic and recovery; higher than normal inflation; supply chain issues; changes in consumer demand from taxable to non- taxable purchases; a spike in fuel prices; and now new federal tariff policy. All segments of sales tax revenues are expected to remain flat or increase slightly with the exception of transportation, which is projecting a long- term decline as electric vehicle adoption continues and exerts downward pressure on demand for gasoline sal es. The FY2025/26 budget is based on Avenu’s conservative sales tax scenario. The FY2026/27 projection is also based on Avenue’s conservative sales tax scenario, while the years after that increase to a midway point between the conservative scenario and the most likely scenario.

99 FY2025/26 Proposed Budget

The table on the following page breaks down the prior four calendar years for the base 1% sales tax excluding Measure U providing a picture of the impact of the pandemic on the City’s sales tax revenues.

100
FY2025/26 Proposed Budget

101
FY2025/26 Proposed Budget

The table below breaks down the prior four calendar years for the Measure U 1% Transactions and Use Tax providing a picture of the impact of the pandemic on the City’s sales tax revenues.

102
FY2025/26 Proposed Budget

Utility User Tax (UUT)
UUT is a usage tax on communication, electric, and gas charges billed to a billing or service address in the City as authorized in the City Code (Section 3.32). Measure O was approved by the voters in November 2008, reducing the 7.5% tax rate to 7% on telecommunication services, but was expanded to include Voice over Internet Protocol (VoIP), text messaging, and many other previously excluded technologies. The 7.5% tax rate continues to be in effect for gas, electric, and cable services. UUT is the City’s third largest revenue source, accounting for 8% of General Fund revenue. UUT has had the most consistent revenue stream over the past five years but also faces the most potential for adversity with industry regulation and the market growth of unregulated media platforms. The following graph represents the UUT revenues by source:

Cable, wireless telecommunication, and wired telecom munication revenue components continue to face regulatory and fiscal pressure across their respective industries. The City has reduced UUT revenue projections in previous fiscal years to address these underperforming sectors. Electricity and gas now account for over 75% of all UUT revenue, providing overall growth despite continued losses by the other components. Historically, these segments used to account for about half of UUT revenue since FY1996/97 before growing to 60% of UUT in FY2018/19 and 70% in FY2022/23. However, the dominance of the electricity and gas segments makes the overall revenue stream less diversified and therefore more prone to volatility. For example, in which Sacramento seasons are milder may result in more muted UUT revenue totals as households avoid using air conditioning and heating. The FY2025/26 budget assumes 0.5% growth in UUT annually due to the infighting between UUT segments and the unpredictability of energy usage going forward.

103
FY2025/26 Proposed Budget

Details on each of the five components that comprise the UUT are provided below.

Cable Subscriptions – Consumers continue to cancel their cable TV subscriptions, and the pace is quickening. In 2022, an estimated 4.9 million subscriptions were cancelled, followed by another 5.4 million in 2023. In the first three quarters of 2024 alone, an estimated 5.7 million subscriptions were cancelled. Comcast accounted for 79% of the City’s cable UUT receipts in FY2023/24. Avenu Insights and Analytics forecasts an additional 31% decline in cable UUT revenue by FY2028/29. The City’s cable revenue decreased by $350,000 through the first seven months of FY2023/24, versus the same period in FY2022/23. Cable accounts for $5.6 million (8%) of all UUT revenue.

Electricity – Energy will continue to be the main catalyst for UUT growth for the foreseeable future. The electricity segment has increased its share of the UUT pie from 39% in FY2007/08 to 55% in FY2023/24. SMUD is the City’s primary source of electricity and continues to face cost pressures for compliance, risk mitigation requirements, technology, and grid investments.

SMUD has increased rates four times since January 2024 to address these issues and has recently proposed further rate increases of 3% for January 1, 2026, and January 1, 2027.

During the first seven months of FY2024/25, the City’s electricity UUT revenues increased

16.7% compared to the same period in FY2023/24.

Natural Gas – PG&E increased gas rates by 8.6% on January 1, 2025. The cost increase will pay for new investments in safety and reliability, including replacing, inspecting, and strength- testing pipelines and using advanced leak detection technology to quickly find and fix gas leaks to improve safety and reduce methane emissions. UUT gas collections were up 20.7% during the first seven months of FY2024/25 compared to FY2023/24. Gas accounts for 19% of all UUT revenue.

Wired Telecommunications – Wired telecom revenues continue to decline due to competition among providers and the lack of product and service differentiation. Existing residential customers continue to migrate towards less expensive alternatives. Wired UUT revenue 104
FY2025/26 Proposed Budget

accounts for approximately 11.9% of the total UUT base. This is down from being over 40% of UUT in the late 1990s. Through the first seven months of FY2024/25 wired telecom revenue is down about 2.9% compared to the same period in FY2023/24.

Wireless Telecommunications – Many wireless providers are generating the majority of their revenue through data services, which are not taxable. On average, this equates to an allocation of approximately 70-85% to data usage. This has caused a 73 % decrease in wireless revenues since FY2009/10. During the first seven months of FY2024/25, wireless UUT revenues have increased by about 6.4% versus the same period in FY2023/24. Wireless telecommunications accounts for about 5.7% of all UUT revenue.

Cannabis Business Operations Tax (CBOT)
The California Department of Tax and Fee Administration has reported a decline in taxable sales of cannabis products for three consecutive calendar years, although some of the decline in 2024 is due to an extension in the filing and payment deadline for Los Angeles County businesses as a result of the January 2025 wildfires. The Sacramento cannabis industry has experienced a similar plateauing as the statewide industry. After collecting a record-high $25.4 million in CBOT in FY2020/21, the City’s CBOT collections have hovered between $22 million and $24 million annually.

California is now considered a mature market for cannabis. Absent federal legalization to export to other states, cannabis sales are not expected to see the same large growth rates experienced immediately after statewide recreational cannabis legalization. Given these trends statewide and locally, the FY2025/26 budget is projected to remain flat at $23.3 million over the term of the five -year forecast until new information becomes available.

Fees and Charges
Local government has the ability to implement fees to fund City facilities, infrastructure, and services. There are five main categories of fees that the City currently implements:

• Impact/Development fees
• Penalties/Fines
• Regulatory fees
• Rental fees
• Service fees

On February 7, 2006 (Resolution No. 2006- 106), Council formally adopted a C itywide Fees and Charges Policy. This policy ensures that fees and charges reflect the Council’s direction regarding recovery of costs related to providing programs and services. The policy sets the guidelines for cost recovery goals, determines the categories of cost recovery levels, and allows for the establishment and modification of fees and charges. If a fee is not adjusted in the budget process, to the extent feasible and/or appropriate, it should be increased biennially by a consumer price index (CPI) factor to keep pace with inflation.

105
FY2025/26 Proposed Budget

Beginning in FY2014/15, the City used the State of California Department of Industrial Relations CPI, which is the same index used by the Assessor , to adjust the annual property tax roll for inflation. The annual review of C itywide fees and charges helps to ensure that the City’s recovery of costs for services keeps pace with changes in the cost- of-living index, as well as changes in methods or levels of service delivery. Fees and charges make up approximately 19.1% of General Fund revenues. As part of the annual budget process, the Finance Department will present the annual Fees and Charges Update to Council for adoption in May 2025.

The City is currently conducting a two-year citywide fee study, which started in April 2025.

City departments will be separated into two phases with the first phase being completed in time for the FY2026/27 Budget process and the second phase being completed in time for the FY2027/28 Budget process. All City departments (except for Fire Department and the Department of Utilities) will participate in the process. The Fire Department just completed a separate fee study, and the Department of Utilities plans to do a separate fee study.

General and Measure U Fund Expenditures
The single largest expenditure in the General Fund (including Measure U) is the cost of employees who support department operations through the delivery of programs and services to the community. The Budget and forecast include scheduled step increases for employees and any other negotiated salary and benefit increases based on existing labor agreements. In FY2025/26, labor costs are expected to increase by 2.7% compared to the FY2024 /25 Approved Budget due to approved salary and benefit increases included in the labor agreements approved by Council in FY2023/24, movement of employees through salary steps, pension cost increases , new position augmentations and position deletions due to reduction strategies.

CalPERS
The City participates in the CalPERS pension plan managed by the State of California.

Contributions to the plan consist of the normal cost rate which is determined by looking at the annual cost of providing benefits to active employees for the upcoming fiscal year.

The normal cost should be viewed as the long-term contribution rate which both the City and the employees contribute toward. The FY2025/26 normal contribution is projected to be approximately $70.1 million, of which $60.6 million is from the General Fund.

The second component is a payment for the unfunded accrued liability (UAL) which is determined by looking at the Market Value of Assets of the City’s two defined benefit plans (Miscellaneous and Safety) and comparing it with the accrued liability of that plan.

To the extent that the assets are lower than the liability, the City is required to make a payment (determined by CalPERS) toward the UAL. The purpose of the UAL payment is to get the assets and liabilities back to even over time. The FY2025/26 UAL payment is $115.9 million, of which approximately $101.9 million is from the General Fund. The City’s current UAL with CalPERS is approximately $1.5 billion.

The total employer contribution is the sum of the normal cost rate applied to an employer's reported payroll plus the UAL payment. These two components are the required contribution amount that employers pay CalPERS to fund their employees' pension 106
FY2025/26 Proposed Budget

benefits. The FY2025/26 total employer contribution is projected to be approximately $186 million, of which approximately $162.5 million is from the General Fund. The UAL portion of the General Fund’s contribution is 68% higher than the normal cost.

California Public Employees' Pension Reform Act (PEPRA): On Ja nuary 1, 2013, PEPRA changed the way CalPERS retirement and health benefits are applied and placed compensation limits on members. The normal cost for PEPRA employees is shared 50/50 between the City and the employees, whereas the normal cost for Classic employees -- those employees who were CalPERS members prior to 2013 -- was capped at 7% for miscellaneous members and 9% for safety members, unless Recognized Employee Organizations (REOs) agreed to pick up a portion of the employer’s cost. In response t o the Great Recession, the City’s REOs agreed to pick up a portion of the employer’s normal cost (1% for miscellaneous members and 3% for safety members).

For PEPRA members, the cost sharing of the normal cost as well as the benefit changes has resulted in a reduced financial burden for the City. As Classic members continue to transition to retirement, PEPRA employees have become a larger portion of the City ’s workforce. The graph below illustrates the increase in PEPRA employees over the past five years.

CalPERS Discount Rate (earnings assumption)
In July 2021, in accordance with the CalPERS Funding Risk Mitigation Policy (Policy) approved by the Board in 2015, the discount rate was lowered from 7.0% to 6.8% following a 21.3% FY2020/21 fiscal year return. Under the Policy, when CalPERS achieves a double-digit return on investments, a reduction in the discount rate is triggered.

The combined impact of all these changes was an increase in employer rates. These increases in costs are included as part of the five-year forecast.

In November 2021, the CalPERS Board (Board) adopted new actuarial assumptions based on the recommendations in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study reviewed the retirement rates, termination rates, morta lity rates, rates of salary increases, and inflation assumption for public agencies. These assumptions were used in the most recent actuarial valuation of the City’s defined benefit plans and influenced the required contribution for FY2025 /26. In addition, the Board adopted a new strategic asset allocation as part of its Asset Liability Management process. The new asset allocation, along with the new capital market assumptions and economic assumptions, support a discount rate of 6.8%. This includes a reduction in the price inflation assumption from 2.5% to 2.3%. If the retirement plan does not meet actuarial assumptions – if earnings on plan assets are lower than the discount rate or salary increases are higher than plan assumptions – the City’s UAL will increase.

PERS Type Approved
FY2020/21
Approved
FY2021/22
Approved
FY2022/23
Approved
FY2023/24
Approved
FY2024/25
Proposed
FY2025/26
Classic 61% 56% 52% 38% 35% 31%
PEPRA 39% 44%
48% 62% 65% 69%
107
FY2025/26 Proposed Budget

In July 2024, CalPERS announced a preliminary 9.3% net return on investments for the 12-month period ending June 30, 2024. Public equity investments outpaced all other asset classes in the new investment report, with an estimated 17.5% return in FY2023/24.

These assets comprise about 41.9% of the total fund. Although the preliminary net return was estimated to be 9.3% for FY2023/24, recent market volatility presents a challenge to achieving the discount rate of 6.8% in FY2024/25. If CalPERS fails to meet its discount rate target in FY2024/25 by a wide enough margin, costs to employers could still increase in the future. Depending on the FY2024/25 results, the five-year forecast will be updated after June 30, 2025.

General Liability, Auto Liability, and Workers’ Compensation Insurance The City contracts with Bickmore Risk Services (Bickmore) to develop an actuarial estimate which establishes the appropriate amount to budget for claim costs for the coming fiscal year as well as the program’s liability for outstanding claims. Bickmore utilizes historical City loss data to forecast the upcoming fiscal year’s cost of claims and expenses and the City utilizes the actuary’s forecast at the recommended 80% confidence level when budgeting for claim costs and expenses. This means that the calculated amounts should be sufficient 80% of the time to cover the fiscal year’s costs for the Workers’ Compensation (WC) and GL&AL Funds. Consistent with Council’s adopted policy to maintain this funding level, the General Fund contribution to the GL&AL Fund was increased from $37.9 million in FY2024 /25 to $42.5 million or 1 2% in FY2025/26.

Insurance premiums have been rising in recent years, primarily excess liability and property premiums, and public entities will continue to experience a difficult insurance market in FY2025 /26. This is an industry -wide problem , not isolated to the City of Sacramento. Since 2010 there has been an 11% annual increase in liability claim costs.

A deterioration in loss experience and fewer insurance carriers willing to write public entity business are driving a tightening insurance market. Simply stated, there has been a dramatic increase in the number and size of extremely large liability losses. Information provided by the City’s insurance broker illustrates the dramatic increase in liability costs.

The average jury award in 2010 was $654,000 and the average jury award in 2020 was $2.5 million, an increase of 274% and an all-time high. The City’s loss history, which has seen an increase in large liability losses since FY2011/12, is also contributing to its increasing insurance premiums. Unfortunately, property insurance rates will continue to increase due to the recent fires in Los Angeles and years of catastrophic events such as hurricanes, floods, wildfires, and winter storms. Inflation, labor shortages, and increased materials costs are also contributing to increasing property insurance premiums.

The General Fund contribution to the Workers’ Compensation Fund increased from $14.5 million in FY2024/25 to $17.3 million in FY2025/26, or 19%. While the number of workers’ compensation claims remains stable, besides an increase from COVID-related claims in FY2021/22, costs are increasing. Cost drivers include medical inflation, an aging workforce, mental health exposures, and workplace violence.

The graph below details the general liability, auto liability and workers’ compensation cost allocations for the General Fund over the past five fiscal years. 108
FY2025/26 Proposed Budget

Recent information from Public Risk Innovation, Solutions, and Management (PRISM), the member-directed risk sharing pool where the City currently purchases excess liability and workers’ compensation insurance, states that public entities and the insurance industry are witnessing dramatic increases in liability loss development in recent years.

The increase in size and number of large liability claims continues to create difficult market conditions. The excess liability insurance market for public entities c ontinues to tighten nationwide driven by increases in plaintiff demands, rising jury verdicts and liability settlements, and high inflation. For example, the number of court cases resulting in jury verdicts of $20 million or more doubled from 2019 to 2023. Additionally, there are many recent jury verdicts or settlements against California public entities more than $30 million.

There has been a large amount of capacity pullbacks and withdrawals by insurance carriers over the past three years. As a result, the number of reinsurers writing public entity business in California had been reduced to about one-third of what it was in 2015, resulting in fewer options for excess insurance and higher premiums. Concerns regarding potential exposure to loss that may have been less concerning until recently will likely yield coverage restrictions, new exclusions, and/or reductions in limits.

109
FY2025/26 Proposed Budget

Measure U Programming and Forecast - $137.4 million
Voter approval of the City of Sacramento Essential Services Protection Measure (Measure U) in November 2018 authorized the extension and expansion of the City’s Measure U Transaction and Use Tax from a half-cent to a full cent effective April 1, 2019, which can be used for any general government purpose. This one-cent tax is charged on each dollar of taxable sales of goods purchased from retailers within the City of Sacramento, and on the taxable storage, use, or consumption of goods purchased outside of the City and delivered to a location within the City. Measure U is projected to generate approximately $135 million in revenues for FY2025/26.

The General Fund and Measure U Funds were presented separately in prior fiscal year financial forecasts. However, in FY2019/20, the Council directed staff to combine the two funds and present them in a single forecast. While the Measure U Fund is included in the General Fund five-year forecast, the following forecast is included to provide additional transparency and details on the revenue estimates and budgeted expenditures. The Measure U Fund is projecting a deficit at the end of FY2025 /26 as the growth i n expenditures for ongoing programs, especially labor costs and service and supplies, is higher than revenue growth.

As presented, the Measure U Fund provides $ 137.4 million for ongoing programs and services for Affordable Housing, Arts/Creative Edge, Climate Action, Community Investment, Community Response, Homelessness, Inclusive Economic Development, Library, Public Safety, and Youth. Detailed information on each program is included in the department sections.

110
FY2025/26 Proposed Budget

FY2025/26 Measure U Programming

Revenues and Expenditures in ($ in 000s)
FY2025/26
FTE
FY2025/26
Proposed
FY2026/27
Projection
FY2027/28
Projection
FY2028/29
Projection
FY2029/30
Projection
REVENUES 135,005 137,696 142,271 145,351 148,109

EXPENDITURES
Affordable Housing
Operations 20.00 1,220 1,251 1,267 1,308 1,312 Multi-Year Operating Projects 3,600 3,600 3,600 3,656 3,600 Affordable Housing Subtotal 20.00 4,820 4,851 4,867 4,964 4,912 Arts/Creative Edge
Operations 23.95 3,254 3,322 3,378 3,457 3,503 Multi-Year Operating Projects 614 614 614 614 661 Arts/Creative Edge Subtotal 23.95 3,868 3,936 3,992 4,071 4,165 Climate Action
Operations 4.00 531 543 553 568 576 Multi-Year Operating Projects - - - - - Climate Action Subtotal 4.00 531 543 553 568 576 Community Investment
Operations 168.77 20,298 20,722 21,090 21,573 21,897 Multi-Year Operating Projects 686 1,744 925 2,119 733 Capital Improvements 3,075 3,000 3,000 3,000 3,000 Community Investment Subtotal 168.77 24,059 25,466 25,014 26,692 25,630 Community Response
Operations 131.00 18,184 18,550 18,859 19,284 19,544 Multi-Year Operating Projects 10,073 10,191 11,129 10,170 10,570 Community Response Subtotal 131.00 28,257 28,742 29,987 29,454 30,114 Homelessness
Operations 6.00 873 893 909 932 945 Multi-Year Operating Projects 2,146 2,146 2,146 2,146 2,146 Homelessness Subtotal 6.00 3,019 3,039 3,055 3,078 3,091 Inclusive Economic Development
Operations 27.00 6,385 6,513 6,625 6,771 6,869 Multi-Year Operating Projects - - - - - Inclusive Economic Development Subtotal 27.00 6,385 6,513 6,625 6,771 6,869 Library
Operations - 14,272 14,972 15,472 15, 972 16,572 Multi-Year Operating Projects 400 400 400 400 400 Library Subtotal - 14,672 15,372 15,872 16,372 16,972 Public Safety
Community Development
Operations 15.00 1,906 1,948 1,983 2,031 2,062 Multi-Year Operating Projects 165 110 43 - 76 Community Development Subtotal 15.00 2,071 2,058 2,026 2,031 2,138 Fire
Operations 17.00 9,535 9,539 9,733 9,941 10,137 Fire Subtotal 17.00 9,535 9,539 9,733 9,941 10,137 Police
Operations 61.50 4,917 5,016 5,105 5,217 5,297 Police Subtotal 61.50 4,917 5,016 5,105 5,217 5,297 Youth Parks & Community Enrichment (YPCE)
Operations 15.00 2,128 2,175 2,216 2,271 2,305 Multi-Year Operating Projects 180 155 244 85 89 YPCE Subtotal 15.00 2,308 2,330 2,459 2,356 2,395 Public Safety Subtotal 108.50 18,831 18,943 19,323 19,544 19,967 Youth
Operations 309.84 18,911 19,312 19,670 20,122 20,447 Multi-Year Operating Projects 2,759 1,759 1,759 1,804 2,525 Youth Subtotal 309.84 21,670 21,071 21,429 21,926 22,972 Miscellaneous
Operations 3.00 7,126 7,874 8,715 9,667 10,742 Multi-Year Operating Projects 4,118 6,000 6,000 6,000 6,000 Miscellaneous Subtotal 3.00 11,244 13,874 14,715 15,667 16,742 Total Expenditures 802.06 137,356 142,349 145,432 149,106 152,009 Economic Uncertainty Reserve (EUR) Contribution (0.5% of Expenses) - 708 723 741 756 Net Resources (revenues less expenditures) (2,351) (5,361) (3,884) (4,496) (4,655) 111
FY2025/26 Proposed Budget

FY2025/26 Measure U Programming (continued)

Summary of Measure U Programs:

Affordable Housing – $4.8 million, 20.0 FTE
• Resources for Specific Plans, Zero-Dollar Fee program, Long Range Planning, and Zoning services in the Community Development Department , and for Housing in the City Manager’s Office to focus on planning and zoning a citywide housing policy and opportunities to promote development of additional housing.

Arts/Creative Edge – $3.9 million, 23.95 FTE
• Resources for nonprofit arts and cultural organizations through the Cultural Arts Award Program and for City programs that promote cultural and creative life including the Arts in Public Places, Arts Education and Outreach office, Arts and Culture, History, Arts Stabilization, Creative Economy and Grants, and the Entertainment Services Division.

Climate Action – $531,000, 4.00 FTE
• Resources for sustainability and cost -saving energy programs to reduce the City's greenhouse gas emissions as required by State law and staff for the City’s Climate Action and Sustainability Office.

Community Investment - $24.0 million, 168.77 FTE
• Resources for the Sacramento History Museum, Sacramento Utility Rate Assistance (SURA) Program, Facility Reinvestment and Americans with Disabilities Act Compliance Programs as well as fleet acquisitions, park operations, older adult services, golf administration, city cemetery, permitting and events , and fiscal & technological support for the Youth, Parks & Community Enrichment Department (YPCE).

Community Response - $28.2 million,
131.0 FTE
• Resources for the Department of Community Response to provide an alternative response to homelessness model through community outreach; and additional resources for fleet acquisitions and to address illegal dumping, neighborhood code compliance, public safety accountability , animal care/shelter, and the Sacramento City 311 Call Center activity.

Revenues and Expenditures in ($ in 000s)
FY2025/26
FTE
FY2025/26
Proposed
FY2026/27
Projection
FY2027/28
Projection
FY2028/29
Projection
FY2029/30
Projection
Other Sources/Uses
Beginning Available Fund Balance (21,239) - - - - Reserve for Future Budget Development (43) - - - - Federal Funding Loss Reserve1 (683)
FY2024/25 Vacancy Factor 803 819 836 852 869 Other Spending Increases (1,299) (1,317) (1,335) (1,354) (1,373) Hom eless Services
Measure U Support 13,119 11,507 11,555 11,604 11,653 Homeless Services Resources (HHAP-6) 12,896 - - - - Homeless Services Programming (48,201) (48,304) (48,408) (48,892) (49,381) Homeless Services Subtotal (22,185) (36,797) (36,853) (37,288) (37,728) Revised Forecast 802.06 (46,996)$ (42,655)$ (41,236)$ (42,286)$ (42,887)$ 112
FY2025/26 Proposed Budget

Homelessness - $3.0 million, 6.0 FTE
• Resources for the Department of Community Response to coordinate with various Federal, State, local, nonprofit, and faith -based entities to end homelessness.

Inclusive Economic Development - $6.4 million, 27.0 FTE • Resources for Community Programs, and City departments that promote inclusive economic and community development such as Community Engagement, Community Investment, Economic Development, and Office of Diversity and Equity.

Library - $14.7 million
• Resources for the support, maintenance, and capital needs of the City’s libraries.

Public Safety - $18.8 million, 108.5 FTE
• Resources to staff and support the hiring pipeline in Police, Diversity Outreach Recruitment Program and fire suppression in the Fire Department, park safety services in YPCE, and animal enforcement and field services in the Community Development Department.

Youth - $21.7 million, 309.84 FTE
• Resources for programs such as the M ayor/Council Economic Development Priorities, Children and Youth Services Program, Summer Youth and Community Programs, Gang Prevention, Office of Violence Prevention Disruption, Response & Intervention, and Powerhouse Science Center.

Resources also include the operation of the City’s access leisure, aquatics, community centers, youth employment, youth enrichment, youth expanded learning, Camp Sacramento, Office of Youth Development , and recreation programs.

Miscellaneous - $11.2 million, 3.00 FTE
• Resources for commission stipends for various Commissions, expanded technology support, and Citywide employee services/benefits costs related to staffing funded by Measure U.

113
FY2025/26 Proposed Budget

Enterprise Funds
Enterprise Funds capture the financial activity of government facilities or services that are self-supporting through the fees associated with operating that service. Revenues and expenditures are expected to sustain operational needs, maintenance, and replacement of aging infrastructure, comply with regulatory mandates, and maintain the financial stability of the funds.

The following chart provides an overview of the proposed changes included in the FY2025/26 Budget for the Enterprise Funds:

Department Description Fund Net Budget
Change
FTE
Change
Citywide Support Increase on-going funding for incremental increases for annual software licenses, subscriptions, system
maintenance, and technical support increases that
support existing citywide business and technology
systems and applications. Ongoing software
maintenance, subscriptions, and technical support are
crucial for ensuring that business systems function
optimally and maintain high availability.

Parking 4,610 -
Citywide Support Increase on-going funding for incremental increases for annual software licenses, subscriptions, system
maintenance, and technical support increases that
support existing citywide business and technology
systems and applications. Ongoing software
maintenance, subscriptions, and technical support are
crucial for ensuring that business systems function
optimally and maintain high availability.

Water 29,001 -
Citywide Support Increase on-going funding for incremental increases for annual software licenses, subscriptions, system
maintenance, and technical support increases that
support existing citywide business and technology
systems and applications. Ongoing software
maintenance, subscriptions, and technical support are
crucial for ensuring that business systems function
optimally and maintain high availability.

Wastewater 9,261 -
Citywide Support Increase on-going funding for incremental increases for annual software licenses, subscriptions, system
maintenance, and technical support increases that
support existing citywide business and technology
systems and applications. Ongoing software
maintenance, subscriptions, and technical support are
crucial for ensuring that business systems function
optimally and maintain high availability.

Recycling and
Solid Waste
24,977 -
Citywide Support Increase on-going funding for incremental increases for annual software licenses, subscriptions, system
maintenance, and technical support increases that
support existing citywide business and technology
systems and applications. Ongoing software
maintenance, subscriptions, and technical support are
crucial for ensuring that business systems function
optimally and maintain high availability.

Community
Center
7,607 -
114
FY2025/26 Proposed Budget

Department Description Fund Net Budget
Change
FTE
Change
Citywide Support Increase on-going funding for incremental increases for annual software licenses, subscriptions, system
maint
enance, and technical support increases that
support existing citywide business and technology
systems and applications. Ongoing software
maintenance, subscriptions, and technical support are
crucial for ensuring that business systems function
optimally and maintain high availability.

Storm Drainage 12,241 -
Citywide Support Change funding source for Visit Sacramento for the continual support of tourism recovery through event
support
and production from General Fund and Measure
U Fund to the Community Center Fund.

Community
Center
500,000 -
Citywide Support Liquidate one-time funding in the Commission Stipends Program (I04000100). Return unused dollars to fund
balance.

Water (3,100) -
Convention and
Cultural Services
Change funding source for eligible costs for visitor-
serving facilities from General Fund and Measure U Fund to the C
ommunity Center Fund.

Community
Center
347,430 2.00
Convention and
Cultural Services
Change funding source for History Division administrative support to Old Sacramento from General Fund and
Measur
e U Fund to Community Center Fund.

Community
Center
299,673 -
Convention and
Cultural Services
Increase funding for security and utility expenses for the Crocker Art Museum.

Community
Center
357,117 -
Convention and
Cultural Services
Change funding source for the New Year's Eve fireworks
from General Fund to the Community Center Fund.

Community
Center
125,000
Convention and
Cultural Services
Delete one position (1.0 FTE - Events Duty Person) and
add five positions (five 0.20 FTE - Events Duty Person).

Community
Center
- -
Convention and
Cultural Services
Delete three positions (3.0 FTE - Events Associate) and add 30 positions (thirty 0.10 FTE - Events Associate).

Community
Center
12 -
Convention and
Cultural Services
Increase funding for the activation support for Old
Sacramento in the History Division Budget under the
Comm
unity Center Fund.

Community
Center
150,000 -
Information
Technology
Increase on-going funding for the City's Adobe Experience Manager (AEM) license upgrade. The City's website and
mass
communication system, powered by AEM, serves
as a central platform for providing information, services, and fostering engagement with residents, businesses,
and visitors. Adobe is transitioning away from its standard basic license and hosting services, moving all customers to the Enterprise subscription, which offers additional features.

Parking 920 -
Information
Technology
Increase on-going funding for the City's Adobe Experience Manager (AEM) license upgrade. The City's website and
mass
communication system, powered by AEM, serves
as a central platform for providing information, services, and fostering engagement with residents, businesses,
and visitors. Adobe is transitioning away from its standard basic license and hosting services, moving all customers to the Enterprise subscription, which offers additional features.

Water 7,202 -
115
FY2025/26 Proposed Budget

Department Description Fund Net Budget
Change
FTE
Change
Information
Technology
Increase on-going funding for the City's Adobe Experience Manager (AEM) license upgrade. The City's website and
mass communication system, powered by AEM, serves
as a central platform for providing information, services, and fostering engagement with residents, businesses,
and visitors. Adobe is transitioning away from its standard basic license and hosting services, moving all customers to the Enterprise subscription, which offers additional features.

Wastewater 2,149 -
Information
Technology
Increase on-going funding for the City's Adobe Experience Manager (AEM) license upgrade. The City's website and
mass communication system, powered by AEM, serves
as a central platform for providing information, services, and fostering engagement with residents, businesses,
and visitors. Adobe is transitioning away from its standard basic license and hosting services, moving all customers to the Enterprise subscription, which offers additional features.

Recycling and
Solid Waste
4,535 -
Information
Technology
Increase on-going funding for the City's Adobe Experience Manager (AEM) license upgrade. The City's website and
mass communication system, powered by AEM, serves
as a central platform for providing information, services, and fostering engagement with residents, businesses,
and visitors. Adobe is transitioning away from its standard basic license and hosting services, moving all customers to the Enterprise subscription, which offers additional features.

Community
Center
2,385 -
Information
Technology
Increase on-going funding for the City's Adobe Experience Manager (AEM) license upgrade. The City's website and
mass communication system, powered by AEM, serves
as a central platform for providing information, services, and fostering engagement with residents, businesses,
and visitors. Adobe is transitioning away from its standard basic license and hosting services, moving all customers to the Enterprise subscription, which offers additional features.

Storm Drainage 2,713 -
Public Works Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve
efficiency.

Community
Center
141 -
Public Works Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve
efficiency.

Parking 1,709 -
Public Works Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve
efficiency.

Recycling and
Solid Waste
217,309 -
Public Works Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve
efficiency.

Storm Drainage 39,383 -
116
FY2025/26 Proposed Budget

Department Description Fund Net Budget
Change
FTE
Change
Public Works Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve
efficiency.

Wastewater 37,310 -
Public Works Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve
efficiency.

Water 39,880 -
Public Works Increase the hourly rates in City parking garages to be consistent with the surrounding market.

Parking (333,168) -
Public Works Repeal discounted parking rates in City garages for electric vehicles (EVs) as this legacy program is no
longer necessary to promote EV adoption.

Parking (51,809) -
Public Works Increase revenue and expense budgets for the Parking Fund to reflect higher ongoing growth in parking garage utilization.

Parking (325,000) -
Public Works Increase parking garage prepay and online reservation rates to balance market demand.

Parking (151,625) -
Public Works Increase monthly rates at City Parking Garages to reflect increasing costs and remain competitive with surrounding market.

Parking (98,448) -
Public Works Increase merchant parking validation coupon fee to better recover issuance costs and reduce misuse.

Parking (56,406) -
Public Works Offset one position (1.0 FTE - Systems Engineer) with one-time funds from the Parking Fund. Position will move to the Cost Plan in FY2026/27.

Parking 138,621 -
Public Works Add 1.0 FTE Senior Integrated Waste Equipment Operator to operate front load recycling route to serve newer and planned higher density developments.

Recycling and
Solid Waste
106,860 1.00
Utilities Delete one position (1.0 FTE - Program Manager) and add one position (1.0 FTE - Government Affairs Manager) in the Office of the Director Government Affairs Section.

The Government Affairs Program is expanding to include
Sustainability, Security and Emergency Preparedness,
and Department of Utilities (DOU) Department Support
Programs.

Water 25,751 -
Utilities Delete one position (1.0 FTE - Program Manager) and add one position (1.0 FTE - Government Affairs Manager) in the Office of the Director Government Affairs Section.

The Government Affairs Program is expanding to include
Sustainability, Security and Emergency Preparedness,
and Department of Utilities (DOU) Department Support
Programs.

Wastewater 8,961 -
Utilities Delete one position (1.0 FTE - Program Manager) and add one position (1.0 FTE - Government Affairs Manager) in the Office of the Director Government Affairs Section.

The Government Affairs Program is expanding to include
Sustainability, Security and Emergency Preparedness,
and Department of Utilities (DOU) Department Support
Programs.

Storm Drainage 7,589 -
117
FY2025/26 Proposed Budget

Department Description Fund Net Budget
Change
FTE
Change
Utilities Delete one position (1.0 FTE - Program Manager) and add one position (1.0 FTE - Government Affairs Manager) in the Office of the Director Government Affairs Section.

The Government Affairs Program is expanding to include
Sustainability, Security and Emergency Preparedness,
and Department of Utilities (DOU) Department Support
Programs.

Storm Drainage
Property Fee
4,359 -
Utilities Add one position (1.0 FTE - Engineering Technician III) for the Engineering and Water Resources Division. This
position will provide resources to support implementation of the expanded Storm Drainage Capital Improvement
Program (CIP) and will support the Water, Wastewater,
and Private Development projects.

Storm Drainage (103,038) 1.00
Utilities Add one position (1.0 FTE - Construction Inspector II) and a Ford Maverick for the Engineering and Water
Resources Division. This position will provide resources to provide construction inspection services for expanding Water, Wastewater, and Storm Drainage CIPs.

Water (64,671) 1.00
Utilities Add one position (1.0 FTE - Instrument Technician II) and a Ford Maverick Crew Hybrid vehicle for the Wastewater
and Drainage OandM Division. This position will provide resources for the implementation of new
software/hardware systems for the DOU Security Master
Plan.

Water (15,858) 1.00
Utilities Add one position (1.0 FTE - Instrument Technician II) and a Ford Maverick Crew Hybrid vehicle for the Wastewater
and Drainage OandM Division. This position will provide resources for the implementation of new
software/hardware systems for the DOU Security Master
Plan.

Wastewater 33,081 -
Utilities Add one position (1.0 FTE - Instrument Technician II) and a Ford Maverick Crew Hybrid vehicle for the Wastewater
and Drainage OandM Division. This position will provide resources for the implementation of new
software/hardware systems for the DOU Security Master
Plan.

Storm Drainage 24,175 -
118
FY2025/26 Proposed Budget

Department Description Fund Net Budget
Change
FTE
Change
Utilities Delete two positions (2.0 FTE - Utilities Locator) and add two positions (2.0 FTE - Utilities Operations and
Maintenance [OandM] Leadworkers); and add two
posit
ions (2.0 Utilities OandM Serviceworkers) for the
Wastewater and Drainage OandM Division's Homeless
Encampment Program. Current FTE in the division are
used for encampment clean up, which reduces the
team's ability to maintain other regulatory requirements, citizen and council requests, and other underground
infrastructure needs.

Water (87,356) (2.00)
Utilities Delete two positions (2.0 FTE - Utilities Locator) and add two positions (2.0 FTE - Utilities Operations and
Maintenance [OandM] Leadworkers); and add two
posit
ions (2.0 Utilities OandM Serviceworkers) for the
Wastewater and Drainage OandM Division's Homeless
Encampment Program. Current FTE in the division are
used for encampment clean up, which reduces the
team's ability to maintain other regulatory requirements, citizen and council requests, and other underground
infrastructure needs.

Wastewater (44,798) -
Utilities Delete two positions (2.0 FTE - Utilities Locator) and add two positions (2.0 FTE - Utilities Operations and
Maintenance [OandM] Leadworkers); and add two
posit
ions (2.0 Utilities OandM Serviceworkers) for the
Wastewater and Drainage OandM Division's Homeless
Encampment Program. Current FTE in the division are
used for encampment clean up, which reduces the
team's ability to maintain other regulatory requirements, citizen and council requests, and other underground
infrastructure needs.

Storm Drainage 1,761 4.00
Utilities Delete one position (1.0 FTE - Senior Maintenance Worker) and add one position (1.0 FTE - General Repair
Worker) for the Engineering and Water Resources
Div
ision. The classification for the General Repair Worker more closely aligns with the duties required in the
Logistics Tool Room as compared to the Senior
Maintenance Worker.

Water 36 -
Utilities Delete one position (1.0 FTE - Senior Maintenance Worker) and add one position (1.0 FTE - General Repair
Worker) for the Engineering and Water Resources
Div
ision. The classification for the General Repair Worker more closely aligns with the duties required in the
Logistics Tool Room as compared to the Senior
Maintenance Worker.

Wastewater 16 -
Utilities Delete one position (1.0 FTE - Senior Maintenance Worker) and add one position (1.0 FTE - General Repair
Worker) for the Engineering and Water Resources
Div
ision. The classification for the General Repair Worker more closely aligns with the duties required in the
Logistics Tool Room as compared to the Senior
Maintenance Worker.

Storm Drainage 14 -
119
FY2025/26 Proposed Budget

Additional information on each of these initiatives can be found in the Budget Modification section and related department sections.

Operational descriptions and updates of each of the City’s Enterprise Funds are shown on the following pages, including a five- year forecast for each fund. The following chart summarizes the status of the Enterprise Funds.

Department Description Fund Net Budget
Change
FTE
Change
Utilities Add three positions (1.0 FTE - Utilities O and M Leadworker, 1.0 FTE - Utilities O and M Serviceworker,
and 1.0 FTE Administrative Technician) with a Ford F-250 Supercab and Vermeer Tow Trailer for the Wastewater
and Drainage O and M Division . These new positions will support the Trash Capture Program as a result of the
Storm Drainage Capital Improvement Program.

Storm Drainage 29,510 3.00
Utilities Add three positions (1.0 FTE - Utilities O and M Leadworker, 1.0 FTE - Utilities O and M Serviceworker,
and 1.0 FTE Administrative Technician) with a Ford F-250 Supercab and Vermeer Tow Trailer for the Wastewater
and Drainage O and M Division . These new positions will support the Trash Capture Program as a result of the
Storm Drainage Capital Improvement Program.

Storm Drainage
Property Fee
203,000 -
Utilities Delete one position (1.0 FTE - Customer Service Representative) and add one position (1.0 FTE -
Customer Service Specialist) for the Business Services
Division. This position will support the additional duties related to Control 1 Dispatching Operations and the
Customer Service Quality Assurance program.

Water 10 -
Utilities Delete one position (1.0 FTE - Customer Service Representative) and add one position (1.0 FTE -
Customer Service Specialist) for the Business Services
Division. This position will support the additional duties related to Control 1 Dispatching Operations and the
Customer Service Quality Assurance program.

Wastewater 11 -
Utilities Delete one position (1.0 FTE - Customer Service Representative) and add one position (1.0 FTE -
Customer Service Specialist) for the Business Services
Division. This position will support the additional duties related to Control 1 Dispatching Operations and the
Customer Service Quality Assurance program.

Recycling and
Solid Waste
37 -
Utilities Delete one position (1.0 FTE - Customer Service Representative) and add one position (1.0 FTE -
Customer Service Specialist) for the Business Services
Division. This position will support the additional duties related to Control 1 Dispatching Operations and the
Customer Service Quality Assurance program.

Storm Drainage 11 -
Utilities Delete one position (1.0 FTE - Customer Service Representative) and add one position (1.0 FTE -
Customer Service Specialist) for the Business Services
Division. This position will support the additional duties related to Control 1 Dispatching Operations and the
Customer Service Quality Assurance program.

Storm Drainage
Property Fee
3 -
Total Change 1,471,094$ 11.00
120
FY2025/26 Proposed Budget

Fund Status
Community
Center
Transient occupancy tax (TOT) revenues have recovered to pre-pandemic levels, but growth has appeared to slow down. TOT is projected to grow by about 3.5%
annually through the five-year forecast. In FY2025/26, about $1.3 million in ongoing expenses are being shifted to the Community Center Fund from the General Fund as part of addressing the General Fund's structural deficit.

Parking Rate increases in this model include increasing the hourly and monthly rates to park in City garages as well as the prepay and reservation rates. Revenue from parki
ng fees collected at City garages has shown nearly full recovery from severe declines during the pandemic, projected revenues for FY2024/25 are about 98% of FY2018/19 actual collections. Revenue continues to increase as more events return downtown, which will increase the utilization of the garages.

Solid Waste The most recent rate adjustment approved by the City Council came into effect on January 1, 2024, with no projected rate adjustments in the forecast.

Organi
cs collection and disposal have been implemented to comply with Senate Bill 1383. The new law targets a 50% reduction in the landfill of organic waste in 2024 and a 75% reduction by 2026.

Storm Drainage A rate increase is not included in the five-year forecast. The anticipated revenues and use of fund reserves will provide sufficient resources to continue operati
ons and maintenance, as well as to ensure compliance with state and federal regulations through FY2028/29. The department anticipates pursuing a rate increase in FY2029/30.

Storm Drainage
Property Fee
A rate increase is not included in the five-year forecast. This fund was established through a voter-approved ballot measure in April 2022 to support a Stor
m Drainage Capital Improvement Program and associated operating costs. In June 2022, a lawsuit was filed against the City that challenges the constitutionality of the measure. In FY2023/24, The Department of Utilities started spending proceeds but is holding one year of revenues pending the outcome of the litigation.

Wastewater A rate increase is not included in the five-year forecast. The anticipated revenues and reserves will provide sufficient resources to continue critical infr
astructure repair and rehabilitation, as well as to ensure compliance with state and federal regulations through FY 2027/28. The Department anticipates pursuing a rate increase for FY2027/28.

Water A rate increase is not included in the five-year forecast. The anticipated revenues and reserves will provide sufficient resources to continue critical infr
astructure repair and rehabilitation, as well as to ensure compliance with state and federal regulations through FY2027/28 with the use of the Capital Reserve. The Department anticipates pursuing a rate increase for FY2027/28. 121
FY2025/26 Proposed Budget

The following tables provide a snapshot of the five-year forecast for each of the Enterprise Funds. Additional information for each of the forecasts can be found in the following pages.

($ in 000s)
F Y2024/25
Estimated
F Y2025/26
Proposed
F Y2026/27
Projection
F Y2027/28
Projection
F Y2028/29
Projection
F Y2029/30
Projection
Beginning Fund Balance 23,400 26,851 22,080 18,933 16,984 16,255 Revenue 50,159 50,669 52,216 53,813 55,463 57,167 Expenditures 53,776 55,190 55,113 55,512 55,942 56,403 Other Source/(Use) 7,068 (250) (250) (250) (250) (250) Ending Funding Balance 26,851 22,080 18,933 16,984 16,255 16,770 ($ in 000s)
F Y2024/25
Estimated
F Y2025/26
Proposed
F Y2026/27
Projection
F Y2027/28
Projection
F Y2028/29
Projection
F Y2029/30
Projection
Beginning Fund Balance 3,189 3,853 3,825 2,924 3,108 3,751 Revenue 19,896 20,314 20,720 21,135 21,557 21,989 Expenditures 19,949 20,342 21,622 20,951 20,915 20,910 Other Source/(Use) 717 - - - - - Ending Funding Balance 3,853 3,825 2,924 3,108 3,751 4,830 ($ in 000s)
F Y2024/25
Estimated
F Y2025/26
Proposed
F Y2026/27
Projection
F Y2027/28
Projection
F Y2028/29
Projection
F Y2029/30
Projection
Beginning Fund Balance 43,365 52,494 60,690 59,891 56,952 53,882 Revenue 99,738 97,935 98,748 99,568 100,395 101,229 Expenditures 91,747 89,738 99,547 102,507 103,465 94,533 Other Source/(Use) 1,138 - - - - - Ending Funding Balance 52,494 60,690 59,891 56,952 53,882 60,579 ($ in 000s)
F Y2024/25
Estimated
F Y2025/26
Proposed
F Y2026/27
Projection
F Y2027/28
Projection
F Y2028/29
Projection
F Y2029/30
Projection
Beginning Fund Balance 22,212 22,358 19,607 13,640 12,839 5,032 Revenue 43,223 44,966 41,632 41,661 41,743 41,755 Expenditures 41,426 47,717 47,599 48,662 49,549 50,281 Other Source/(Use) (1,651) - - 6,200 - - Ending Funding Balance 22,358 19,607 13,640 12,839 5,032 (3,494) ($ in 000s)
F Y2024/25
Estimated
F Y2025/26
Proposed
F Y2026/27
Projection
F Y2027/28
Projection
F Y2028/29
Projection
F Y2029/30
Projection
Beginning Fund Balance 10,480 23,306 23,740 24,949 20,378 21,951 Revenue 19,788 20,307 20,852 21,277 21,652 22,098 Expenditures 6,962 19,873 19,643 19,648 20,079 20,106 Other Source/(Use) - - - (6,200) - - Ending Funding Balance 23,306 23,740 24,949 20,378 21,951 23,943 ($ in 000s)
F Y2024/25
Estimated
F Y2025/26
Proposed
F Y2026/27
Projection
F Y2027/28
Projection
F Y2028/29
Projection
F Y2029/30
Projection
Beginning Fund Balance 24,570 23,459 18,880 7,398 2,020 (2,192) Revenue 47,589 46,174 46,219 46,237 46,316 46,410 Expenditures 48,087 50,752 57,701 51,615 50,528 48,964 Other Source/(Use) (613) - - - - - Ending Funding Balance 23,459 18,880 7,398 2,020 (2,192) (4,746) ($ in 000s)
F Y2024/25
Estimated
F Y2025/26
Proposed
F Y2026/27
Projection
F Y2027/28
Projection
F Y2028/29
Projection
F Y2029/30
Projection
Beginning Fund Balance 44,959 69,274 31,062 954 (2,790) (34,672) Revenue 151,416 138,174 138,008 137,759 138,036 138,032 Expenditures 146,250 176,386 168,116 167,410 169,919 171,237 Other Source/(Use) 19,149 - - 25,907 - - Ending Funding Balance 69,274 31,062 954 (2,790) (34,672) (67,877) Water Fund
Community Center Fund
Parking Fund
Solid Waste Fund
Storm Drainage Fund
Storm Drainage Property Fee Fund
Wastewater F und
122
FY2025/26 Proposed Budget

Community Center Fund (6010)
The Community Center Fund supports the operations, debt service, and capital improvements for the SAFE Credit Union Convention & Performing Arts District , which includes the SAFE Credit Union Convention Center, SAFE Credit Union Performing Arts Center, and Memorial Auditorium. This fund also provides support to other visitor-serving facilities and the General Fund. The operational and financial goals for the Community Center Fund include maintaining successful financial performance as an enterprise fund, optimizing facility utilization through aggressive marketing, exceeding industry standards for customer service and facility maintenance, stimulating hotel market demand to generate transient occupancy tax (TOT) revenues, and offering a premier venue to contribute to the economic vitality of the downtown and Sacramento region.

Over two-thirds of fund revenues collected in the Community Center Fund is TOT. For FY2025/26, TOT is projected to be about 3.5 % above FY2024/25 collections. The vast majority of the remaining portion of fund revenues collected in the Community Center Fund is user fees received from events held at the SAFE Credit Union Convention & Performing Arts District.

On September 25, 2018, City Council authorized the issuance of TOT revenue bonds. A total of $285.2 million in TOT Revenue, Tax Exempt bond funding was received to help finance the Convention Center Complex Renovation Project. Debt service payments for these new bonds started in May 2019. Debt service on the Community Center Fund represents about 38% of total operating expenditures in FY2025/26.

Additionally, in 1997, to maintain the financial integrity of the Community Center Fund, the City Council approved a loan of up to $12 million from the Risk Fund, if needed, to offset any year -end deficit. Total borrowing was $10.4 million, including inter est.

Repayment of the interfund loan began in FY2005/06 and has continued each year. An annual payment of $250,000 is budgeted in FY2025/26 with payments continuing in future years. As of the beginning of FY2024 /25, there is a remaining balance of approximately $4.7 million.

The Oakland Athletics’ relocation to West Sacramento for three seasons may have an impact on TOT revenues that is not included in this forecast. However, a pullback in tourism nationally may act as a contravening factor for hotel bookings in the region. Staff will assess the impacts of these trends and incorporate them into future forecasting exercises.

123
FY2025/26 Proposed Budget

FY2024/25
Estimated
FY2025/26
Proposed
FY2026/27
Projection
FY2027/28
Projection
FY2028/29
Projection
FY2029/30
Projection
BEGINNING FUND BALANCE 23,400 26,851 22,080 18,933 16,984 16,255

REVENUES
TOT 34,546 34,747 35,960 37,215 38,515 39,860 Charges, Fees, and/or Services 14,163 14,472 14,806 15,148 15,498 15,857 Interest 550 550 550 550 550 550 Other (Facility Fee) 900 900 900 900 900 900 TOTAL REVENUES 50,159 50,669 52,216 53,813 55,463 57,167

EXPENDITURES
Operating - Employee Services 10,335 11,823 12,060 12,301 12,547 12,798 Operating - Other 18,443 20,730 20,929 21,129 21,332 21,537 Transfers - 321 327 334 341 348 Debt Service 20,318 20,318 20,320 20,320 20,320 20,317 Multi-Year Operating Projects 2,064 2 2 2 2 2 Capital Improvements 2,616 1,995 1,475 1,425 1,400 1,400 TOTAL EXPENDITURES 53,776 55,190 55,113 55,512 55,942 56,403 ANNUAL SURPLUS/(DEFICIT) (3,617) (4,521) (2,897) (1,698) (479) 764 Other Source/Use(1) 7,068 (250) (250) (250) (250) (250) ENDING FUND BALANCE 26,851 22,080 18,933 16,984 16,255 16,770 Community Center Fund (Fund 6010)
Revenue and Expenditure Five-Year Forecast
Dollars in Thousands
(1) Other Sources in FY2024/25 include additions to fund balance for prior reduction related to outstanding short-term portion of debt liability. 124
FY2025/26 Proposed Budget

Parking Fund (6004)
The City of Sacramento operates five city parking garages and 12 City -owned surface lots, as well as 40 garages and surface parking lots that are managed for private owners to increase parking availability for residents and visitors. The Parking Services Division also manages over 60,000 square feet of retail space servicing 19 tenants within the various City parking structures.

Parking Fund revenue decreased to 52% of pre- pandemic levels in FY2020/21 and is projected to recover to 100% of pre- pandemic levels in FY2025/26. Revenue for FY2025/26 from parking fees collected at City garages is projected to increase 3% as the operation recovers from the impact of the pandemic. The City anticipates parking fees to increase by 5% in FY2025/26 and to increase by about 2% thereafter through FY2029/30.

Anticipated rate increases in this model include increasing the hourly, monthly, and prepay reservation rates to park in City garages. The City continues to modify its parking programs to support operational needs and anticipates that growth in parking will continue to gradually increase.

Administrative fee revenue reflects anticipated revenue from the managed locations as well as system hosting services. Rental revenue is based on current and anticipated leases of commercial spaces and projecting a 2% increase in the outyears.

Employee services includes a budgeted labor reduction of $1 million to account for anticipated vacancies in FY2025/26. This is not included in out -years, but future labor savings are likely to continue due to employee turnover rates. Services and supplies continue to increase due to increased security, repair & maintenance, technical services, utilities, and rental of land and building costs. The forecast includes a flat 1% increase in services and supplies annually for expenses beginning in FY2025/26 through FY2029/30.

Operating transfers in/out include the Citywide cost allocation plan, In Lieu Franchise Tax, In Li
eu Property Tax, support to the Office of the Director, and a $5.3 million support transfer from the Meter Shop. Debt service has a 2% decrease in FY2025/26 as debt obligations continue to decline. Funding for technology systems and upgrades to current parking infrastructure is included in the CIP.

The following chart provides a five-year forecast that reflects signs of pre-pandemic levels being achieved in the Parking Fund which includes increases to the hourly, monthly, and prepay reservation rates to park in City garages. There may be additional parking revenue in the out-years of the forecast due to the Oakland Athletics temporarily relocating to West Sacramento and due to the Governor’s order requiring state employees to return to the office four days a week.

125
FY2025/26 Proposed Budget

Column1 FY2024/25
Estimated
FY2025/26
Proposed
FY2026/27
Projection
FY2027/28
Projection
FY2028/29
Projection
FY2029/30
Projection
BEGINNING FUND BALANCE 3,189 3,853 3,825 2,864 2,924 3,378

REVENUES
Parking Fees 17,549 18,091 18,453 18,822 19,198 19,582 Administrative Fees 1,299 1,263 1,288 1,314 1,340 1,367 Interest (Operating Funds) 425 300 306 312 318 325 Real Property Rental 623 660 673 687 700 714 TOTAL REVENUES 19,896 20,314 20,720 21,135 21,557 21,989

EXPENDITURES
Operating - Employee Services 5,068 5,556 6,733 6,915 7,102 7,293 Operating - Other 3,887 3,865 3,963 4,062 4,162 4,264 Debt Service 9,781 9,577 9,680 8,783 8,479 8,280 Multi-Year Operating Projects 421 322 387 394 442 410 Capital Improvements 792 1,022 920 920 920 920 TOTAL EXPENDITURES 19,949 20,342 21,682 21,074 21,104 21,168 ANNUAL SURPLUS/(DEFICIT) (53) (28) (962) 61 453 821 urce/Use (1) 717 - - - - ENDING FUND BALANCE 3,853 3,825 2,864 2,924 3,378 4,199 Parking Fund (Fund 6004)
Revenue and Expenditure Five-Year Forecast
Dollars in Thousands
(1) Other Sources include additions to fund balance for prior reductions related to outstanding short-term portion of debt liability.

Note: Employee Services reflects a 1.0M Base Labor Reduction implemented in FY25/26 for known vacancies; actual budgeted positions would be higher than reflected in this table.
126
FY2025/26 Proposed Budget

Solid Waste Fund (6007)
The Solid Waste Fund (6007) relies on user service fees collected for residential solid waste management services. Under the management of the Recycling and Solid Waste (RSW) Division, this fund supervises the collection of garbage, containerized organics, and recyclables. In addition to these services, the division oversees post -closure monitoring of landfills, street sweeping, hazardous waste disposal, and code enforcement. To comply with state waste diversion mandates, RSW conducts public outreach to educate residents on recycling standards, promote composting, and facilitate proper disposal of household hazardous waste.

The accompanying chart presents a five-year forecast for the Solid Waste Fund. The most recent rate adjustment approved by the City Council came into effect on January 1, 2024, with no projected rate adjustments in the forecast.

Column1
FY2024/25
Estimated
FY2025/26
Proposed
FY2026/27
Projection
FY2027/28
Projection
FY2028/29
Projection
FY2029/30
Projection
BEGINNING FUND BALANCE 43,365 52,494 60,690 59,891 56,952 53,882

REVENUES
Charges, Fees, and/or Services 96,798 97,152 96,476 97,296 98,123 98,957 Interest 750 750 750 750 750 750 Other (Intergovernmental) 2,190 33 1,522 1,522 1,522 1,522 TOTAL REVENUES 99,738 97,935 98,748 99,568 100,395 101,229

EXPENDITURES
Operating - Employee Services 23,394 23,694 24,168 24,651 25,144 25,647 Operating - Other 55,514 58,883 59,439 60,002 60,572 61,149 Debt Service 1,674 1,667 1,667 1,668 1,660 1,659 Multi-Year Operating Projects 9,084 4,920 13,916 15,629 15,343 5,592 Capital Improvements 2,081 575 358 558 746 487 TOTAL EXPENDITURES 91,747 89,738 99,547 102,507 103,465 94,533 ANNUAL SURPLUS/(DEFICIT) 7,991 8,196 (799) (2,939) (3,070) 6,696 Other Source/Use(1)
1,138 - - - - - ENDING FUND BALANCE 52,494 60,690 59,891 56,952 53,882 60,579 Solid Waste Fund (Fund 6007)
Revenue and Expenditure Five-Year Forecast
Dollars in Thousands
(1) Other Sources include additions to fund balance for prior reductions related to outstanding short-term portion of debt liability. 127
FY2025/26 Proposed Budget

Storm Drainage Fund (6011)
Revenue generated for the purpose of providing storm drainage services under the 1996 drainage fee schedule is deposited in the Storm Drainage Fund. Revenues are primarily derived from customer service fees and interest. Storm Drainage Fund revenues support the cost of storm drainage operations for pumping stations, wet weather treatment and storage, collection system maintenance, related engineering services, floodplain management, customer service and billing, education programs, water quality monitoring, innovative “green” infrastructure programs, and regulatory compliance. Fund expenditures are divided among operating costs, debt service, and multi -year operating projects.

Rate adjustments for the storm drainage utility are subject to a citizen vote. The Storm Drainage Fund has not had an increase since 1996, prior to the implementation of Proposition 218. As a result, revenue collection has not kept pace with storm drainage system costs, and the utility has been historically underfunded. The City worked closely with the community, the Utilities Rate Advisory Commission and the City Council to develop a new Storm Drainage Property Fee (6021) to support capital infrastructure and related operating costs. The Storm Drainage Fund will continue to rely on reserves for existing operations and maintenance.

The City Council passed the DOU Reserve Policy on January 24, 2023 (Motion Number 2023-0028), which has been incorporated into the five- year forecast. Approval of the policy allowed the Department of Utilities (DOU) to formalize existing guidelines and practices for better financial management of the DOU enterprise funds. The balance of the unrestricted operating reserve associated with the Storm Drainage Fund represents a commitment of $12.0 million that is incorporated into the available fund balance calculation.

The Storm Drainage Fund faces significant challenges over the next five years. Key issues for the Storm Drainage Fund include the following:
• Declining fund reserves, as the existing revenue, will not be sufficient to cover future operating expenses.
• Upgrading separated drainage system service to meet citywide standards. • Improving drainage system reliability and contributing to the combined sewer system (CSS) repair.
• Maintaining state and federal regulatory compliance, e.g., Stormwater National Pollutant Discharge Elimination System (NPDES) Permit, floodplain management, and supporting regional flood control efforts. • Implementing a new tree inventory and maintenance plan for trees on DOU facilities, including flood control channels and levees that will provide consistent tree care and maintenance; and defend the city against tree- related risk claims and lawsuits.
128
FY2025/26 Proposed Budget

• Increasing maintenance needs of drainage facilities related to the cleanup of waste and debris caused by homeless encampments.
• Implementing an asset management system that will provide accurate reporting for operating, maintaining, and replacing infrastructure at appropriate lifecycle intervals.
• Significant cost increases projected for utilities due to rate restructuring. • Increased cost related to carbon- neutral sustainability goals for fleet and facilities.
• Expand and improve the Supervisory Control and Data Acquisition (SCADA) system security program to meet regulatory compliance and to mitigate risk from escalating threats related to cyber-attacks, across all four funds.

The following chart provides a five- year forecast that addresses some of the challenges facing the Storm Drainage Fund. These challenges include anticipated cost increases, funding programs to meet regulatory requirements, and no rate adjustments.

Column1 FY2024/25
Estimated
FY2025/26
Proposed
FY2026/27
Projection
FY2027/28
Projection
FY2028/29
Projection
FY2029/30
Projection
BEGINNING FUND BALANCE 22,212 22,358 19,607 13,640 12,839 5,032

REVENUES
Charges, Fees, and/or Services 42,288 44,426 41,315 41,404 41,494 41,584 Interest 935 540 317 257 249 171 TOTAL REVENUES 43,223 44,966 41,632 41,661 41,743 41,755

EXPENDITURES
Operating - Employee Services 20,487 23,490 24,072 24,553 25,044 25,545 Operating - Other 18,130 19,947 20,338 20,724 21,119 21,525 Debt Service 233 232 233 233 235 235 Multi-Year Operating Projects 2,275 4,008 2,956 3,152 3,151 2,976 Capital Improvements 301 39 - - - - TOTAL EXPENDITURES 41,426 47,717 47,599 48,662 49,549 50,281 ANNUAL SURPLUS/(DEFICIT) 1,797 (2,751) (5,967) (7,001) (7,806) (8,526) Other Fund Sources/Uses(1) (1,651) - - 6,200 - - ENDING FUND BALANCE 22,358 19,607 13,640 12,839 5,032 (3,494) Storm Drainage Fund (Fund 6011)
Revenue and Expenditure Five-Year Forecast
Dollars in Thousands
(1) Other Sources in FY2024/25 include additions to fund balance for prior reductions related to outstanding short-term portion of debt liability, and the annual adjustment for the Operating Reserve per the DOU Reserve Fund Policy adopted by City Council on January 24, 2023 (Motion No. 2023-0028). 129
FY2025/26 Proposed Budget

Storm Drainage Property Fee Fund (6021)
Revenue generated for the purpose of providing storm drainage services under the 2022 drainage fee schedule is deposited in the Storm Drainage Property Fee Fund.

Revenues are derived from customer fees, fees related to private development project review, and interest earnings. Services include costs associated with capital programs such as rehabilitation and replacement, regulatory, master planning, asset management, and improvement programs. These varying programs will repair aging and deteriorating storm drainage pipelines and infrastructure; keep pollution, trash, and debris out of local waterways; reduce long-term costs, and protect water supplies and infrastructure against floods, and emergencies. Fund expenditures are summarized and reflected as eligible operating costs, capital improvement costs, and multi-year operating project costs.

The City worked closely with the community, the Utilities Rate Advisory Commission, and the City Council to develop a new Storm Drainage Property Fee that was approved through the ballot and adopted by the City Council in April 2022. The new fee will support a capital improvement program and associated operating costs.

In June 2022, a lawsuit was filed against the City that challenges the constitutionality of the measure. In FY2023/24, the City was successful in receiving a judgment that has since been appealed. In June of 2024, DOU released all but one year of revenue for possible reimbursement to ratepayers.

While the new fee will help address some level of capital replacement and regulatory requirements, it will not provide sufficient resources to fund all storm drainage aging infrastructure or regulatory needs. The Storm Drainage Property Fee Fund faces significant challenges over the next five years. Key issues for the Fund include the following:
• Ongoing replacement of aging infrastructure to meet state and federal standards.
• Upgrading the separated drainage system service to meet citywide standards.
• Improving drainage system reliability and contributing to the CSS repair and rehabilitation or replacement.
• Design and construct certified full trash capture devices and/or multi-benefit low-impact development features that will prevent trash greater than 5 mm from being discharged to waterways for identified areas (high- density residential, commercial, industrial, and mixed- use) with litter to meet the requirements of the State Water Resources Control Board’s Statewide Trash Provisions by 2030.
• Maintaining state and federal regulatory compliance, e.g., NPDES and floodplain management, and supporting regional flood control efforts. 130
FY2025/26 Proposed Budget

• Implementing an asset management system that will provide accurate reporting for operating, maintaining, and replacing infrastructure at appropriate lifecycle intervals.
• Continued implementation of the Drainage Master Plan Program that develops hydrologic and hydraulic models and completes master plans for the City's 137 drainage basins.
• Improving the Drainage and CSS to adequately handle the intensity of weather events related to climate change.
• Increased cost related to carbon- neutral sustainability goals for fleet and facilities.
• Expand and improve SCADA system security program to meet regulatory compliance and to mitigate risk from escalating threats related to cyber - attacks, across all four funds.

The following chart provides a five- year forecast that addresses some of the challenges facing the Storm Drainage Property Fee Fund. These challenges include anticipated cost increases, funding projects and programs to meet regulatory requirements, and no rate adjustments.

Column1 FY2024/25
Estimated
FY2025/26
Proposed
FY2026/27
Projection
FY2027/28
Projection
FY2028/29
Projection
FY2029/30
Projection
BEGINNING FUND BALANCE 10,480 23,306 23,740 24,949 20,378 21,951

REVENUES
Charges, Fees, and/or Services 19,485 20,207 20,612 21,025 21,446 21,876 Interest 303 100 240 252 206 222 TOTAL REVENUES 19,788 20,307 20,852 21,277 21,652 22,098

EXPENDITURES
Operating - Employee Services - - - - - - Operating - Other 3,309 5,180 5,502 5,609 5,718 5,830 Debt Service - - - - - - Multi-Year Operating Projects 1,680 2,453 2,250 2,250 2,250 2,318 Capital Improvements 1,973 12,240 11,891 11,789 12,111 11,958 TOTAL EXPENDITURES 6,962 19,873 19,643 19,648 20,079 20,106 ANNUAL SURPLUS/(DEFICIT) 12,826 434 1,209 1,629 1,573 1,992 Other Fund Sources/Uses - - - (6,200) - - ENDING FUND BALANCE 23,306 23,740 24,949 20,378 21,951 23,943 Storm Drainage Property Fee Fund (Fund 6021)
Revenue and Expenditure Five-Year Forecast
Dollars in Thousands
131
FY2025/26 Proposed Budget

Wastewater Fund (6006)
Revenue generated for the purpose of providing wastewater collection services is deposited in the Wastewater Fund. Revenues are derived from customer service fees, fees related to private development project review, recovery of Sacramento Area Sewer District (SacSewer) related operation and maintenance costs paid by the fund, interest earnings, and connection charges. Wastewater Fund revenues cover the cost of wastewater collection and maintenance, storage and treatment of wet weather combined sewage, installation of new services, operation of sanitary pumping stations, related engineering services, customer service and billing, education programs, water quality monitoring, and regulatory compliance. Fund expenditures are generally divided among operating costs, debt service, capital improvement, and multi-year operating projects.

The City -operated wastewater collection system consists of a CSS and a separated wastewater system that, together, serve approximately 60% of the city, primarily the northeastern, central, and southern sections of the city. SacSewer is the wastewater collection system provider for the other areas of the City. While the City is responsible for the limited treatment of its CSS, it partners with SacSewer to treat the majority of the city’s wastewater. The City provides SacSewer with billing and collection services for properties within the service area in which wastewater collection is provided by the City.

The City Council passed the DOU Reserve Policy on January 24, 2023 (Motion Number 2023-0028), which has been incorporated into the five- year forecast. Approval of the policy allowed DOU to formalize existing guidelines and practices for better financial management of the DOU enterprise funds. The balance of the unrestricted operating ($10.5 million) and capital ($3.4 million) reserves associated with the Wastewater Fund represents a commitment incorporated into the available fund balance calculation.

While prior rate adjustments have helped address operational costs and some level of capital replacement, they have not provided sufficient resources to fund major capital replacement projects. The Wastewater Fund presents unique challenges due to the system’s revenue growth potential and the age and nature of the system’s infrastructure, which includes:
• Compliance with state and federal regulations (e.g., CSS NPDES permit and separated wastewater discharge requirements (WDR)) that includes implementation of the CSS Long Term Control Plan and the Sewer System Management Plan. The CSS collects wastewater from homes and businesses, as well as stormwater and urban runoff. A separated wastewater system collects wastewater from homes and businesses and does not collect stormwater.
• Continued state- mandated maintenance, repair, and rehabilitation of the City’s aging CSS and aging separated wastewater system. • Incorporating the growth of new wastewater services.
132
FY2025/26 Proposed Budget

• Maintaining the financial strength of the fund for the purpose of raising sufficient capital to finance the rehabilitation and replacement of the wastewater systems and compliance with the CSS NPDES permit. • Implementing a new tree inventory and maintenance plan for trees on DOU facilities that will provide consistent tree care and maintenance; and defend the city against tree-related risk claims and lawsuits. • Implementing an asset management system that will provide accurate reporting for operating, maintaining, and replacing infrastructure at appropriate lifecycle intervals.
• Increased cost related to carbon neutral sustainability goals for fleet and facilities.
• Significant cost increases projected for utilities due to rate restructuring. • Expand and improve SCADA system security program to meet regulatory compliance and to mitigate risk from escalating threats related to cyber - attacks, across all four funds.

The following chart provides a five- year forecast that addresses some of the challenges facing the Wastewater Fund. These challenges include anticipated cost increases, funding projects and programs to meet regulatory requirements, and no rate adjustments.

The Department is pursuing a rate increase in FY2027/28 due to the Wastewater fund being out of its debt service coverage requirement in FY2027/28.

133
FY2025/26 Proposed Budget

Column1 FY2024/25
Estimated
FY2025/26
Proposed
FY2026/27
Projection
FY2027/28
Projection
FY2028/29
Projection
FY2029/30
Projection
BEGINNING FUND BALANCE 24,570 23,459 18,880 7,398 2,020 (2,192)

REVENUES
Charges, Fees, and/or Services 45,180 44,208 44,309 44,410 44,511 44,614 Interest 1,059 430 328 213 159 117 Other (Intergovernmental) 1,350 1,536 1,582 1,614 1,646 1,679 TOTAL REVENUES 47,589 46,174 46,219 46,237 46,316 46,410

EXPENDITURES
Operating - Employee Services 14,338 15,148 15,527 15,838 16,155 16,478 Operating - Other 19,792 20,069 20,453 20,807 21,169 21,539 Debt Service 3,910 3,913 3,911 3,909 3,908 3,911 Multi-Year Operating Projects 2,585 3,536 3,889 3,969 3,938 4,036 Capital Improvements 7,462 8,086 13,921 7,092 5,358 3,000 TOTAL EXPENDITURES 48,087 50,752 57,701 51,615 50,528 48,964 ANNUAL SURPLUS/(DEFICIT) (498) (4,579) (11,482) (5,378) (4,212) (2,554) Other Fund Sources/Uses(1) (613) - - - - - ENDING FUND BALANCE 23,459 18,880 7,398 2,020 (2,192) (4,746) Wastewater Fund (Fund 6006)
Revenue and Expenditure Five-Year Forecast
Dollars in Thousands
(1) Other Sources in FY2024/25 include additions to fund balance for prior reductions related to outstanding short-term portion of debt liability, and includes the annual adjustments for the Operating and Capital Reserves per the DOU Reserve Fund Policy adopted by City Council on 1/24/2023, Motion No. 2023-0028. 134
FY2025/26 Proposed Budget

Water Fund (6005)
Revenue generated for the purpose of providing water services is deposited in the Water Fund. Revenues are derived from customer fees, interest earnings, fees related to private development project review, tap sales, and reimbursements from other entities for services provided. Water Fund revenues are structured to cover the costs of providing water services to customers. Services include water treatment, water treatment plant maintenance and repair, hazardous materials and waste disposal management, water transmission/distribution system maintenance and repair, water conservation and education programs, water quality monitoring, source water protection, related engineering services, customer service and billing, and oversight of the City-County Office of Metropolitan Water Planning (known as the Water Forum).

Fund expenditures are summarized and reflected as operating costs, debt service, capital improvement costs, and multi-year operating project costs.

The City Council passed the DOU Reserve Policy on January 24, 2023 (Motion Number 2023-0028), which has been incorporated into the five-year forecast. Approval of the policy allowed DOU to formalize existing guidelines and practices for better financial management of the DOU enterprise funds. The balance of the unrestricted operating ($26.1 million) and capital ($31.6 million) reserves associated with the Water Fund represents a commitment incorporated into the available fund balance calculation.

While prior rate adjustments have helped address operational costs, the accelerated water meter program implementation, and some level of capital replacement, they have not provided sufficient resources to fund major capital replacement projects. The Water Fund faces significant challenges over the next five years. Key issues for the Water Fund include the following:
• Ongoing replacement and maintenance of aging and failing infrastructure. • Providing safe and reliable drinking water to the community, while planning for anticipated climate change impacts and other risks to supply and quality. • Maintain water supply resiliency through conjunctive use of surface and groundwater supplies.
• Continued implementation and monitoring of an aggressive water conservation program 1) consistent with meeting state-wide water efficiency mandates and 2) responsive to new legislation establishing a framework for long-term improvements in urban water use efficiency and drought planning as California adapts to climate change.
• Supporting regional, long-term water supply planning. • Developing wholesale and wheeling agreements in support of effective regional water management.
• Meeting future debt service requirements related to rehabilitating and improving intake structures and treatment plants.
135
FY2025/26 Proposed Budget

• Implementing an asset management system that will provide accurate reporting for operating, maintaining, and replacing infrastructure at appropriate lifecycle intervals.
• Increased cost related to carbon neutral sustainability goals for fleet and facilities.
• Implementing a new tree inventory and maintenance plan for trees on DOU facilities that will provide consistent tree care and maintenance; and defend the city against tree-related risk claims and lawsuits. • Increasing costs for items vital to collecting, treating, and delivering water to meet service levels. The most significant cost increases are for chemicals, utilities, and replacement and maintenance of water meters. • Expand and improve SCADA system security program to meet regulatory compliance and to mitigate risk from escalating threats related to cyber - attacks, across all four funds.
• Maintaining state and federal regulatory compliance and planning for compliance with new and revised requirements.

The following chart provides a five- year forecast that addresses some of the challenges facing the Water Fund. These challenges include anticipated cost increases, funding projects and programs to meet regulatory requirements, no rate adjustments, and assumes in FY2027/28 that the capital program of $25.9 million will be funded from the Capital Reserve. As shown, the fund balance will be negative in FY2027/28 without a rate increase. The Department is pursuing a rate increase in FY2027/28 or will utilize the remaining Capital and Operating Reserves through FY2028/29.

136
FY2025/26 Proposed Budget

Column1 FY2024/25
Estimated
FY2025/26
Proposed
FY2026/27
Projection
FY2027/28
Projection
FY2028/29
Projection
FY2029/30
Projection
BEGINNING FUND BALANCE 44,959 69,274 31,062 954 (2,790) (34,672)

REVENUES
Charges, Fees, and/or Services 148,065 136,619 136,927 137,238 137,549 137,861 Interest 2,895 1,365 888 327 290 (29) Other (Intergovernmental) 456 190 192 195 197 200 TOTAL REVENUES 151,416 138,174 138,008 137,759 138,036 138,032

EXPENDITURES
Operating - Employee Services 52,980 57,419 58,854 60,031 61,232 62,457 Operating - Other 38,337 37,179 37,921 38,734 39,542 40,375 Debt Service 32,677 35,723 35,710 35,702 36,259 35,732 Multi-Year Operating Projects 2,438 6,631 6,291 7,036 7,386 7,173 Capital Improvements 19,818 39,433 29,340 25,907 25,500 25,500 TOTAL EXPENDITURES 146,250 176,386 168,116 167,410 169,919 171,237 ANNUAL SURPLUS/(DEFICIT) 5,166 (38,212) (30,108) (29,651) (31,883) (33,205) Other Sources/Uses(1) 19,149 - - 25,907 - - ENDING FUND BALANCE 69,274 31,062 954 (2, 790) (34,672) (67,877) Water Fund (Fund 6005)
Revenue and Expenditure Five-Year Forecast
Dollars in Thousands
(1) Other Sources in FY2024/25 include additions to fund balance for prior reductions related to outstanding short-term portion of debt liability, and the annual adjustments for the Operating and Capital Reserves per the DOU Reserve Fund Policy adopted by City Council on 1/24/2023, Motion No. 2023-0028. Other Fund Sources/Uses in FY2027/28 includes the use of the Capital Reserve to fund the FY28 CIP.
137
FY2025/26 Proposed Budget

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FY2025/26 Proposed Budget

7 SECTION - 7
Budget Schedules
139
FY2025/26 Proposed Budget

140
FY2025/26 Proposed Budget

Schedule 1A
Current Operations – Appropriations by Fund (in 000s)

Change
FY2022/23 FY2023/24 FY2024/ 25 FY2024/25 FY2025/26 More/(Less) Actuals Actuals App roved Amended Proposed Proposed/Amended Governmental Funds
General Fund $ 569,780 $ 613,220 $ 677, 718 $ 678,531 $ 699,061 $ 20,530 Measure U 98,605 105,350 154, 462 153,488 133,478 (20,010) Subtotal Governmental Funds 668,385 718,570 832, 180 832,018 832,539 521 E nterprise Funds
Community Center 46,149 40,704 47, 768 47,797 53,195 5,398 Parking 16,775 17,553 18, 567 18,682 19,320 638
Solid Waste 69,011 70,707 93, 293 86,708 89,164 2,455
Storm Drainage 35,142 36,926 43, 545 42,036 47,678 5,642 Storm Drainage Property Fee 12 5,455 5, 527 5,867 7,633 1,766 Wastew ater 33,185 35,983 41, 754 40,661 42,666 2,005
Water 112,157 117,171 133, 334 132,435 136,952 4,517
Subtotal E nterprise Funds 312,432 324,498 383, 789 374,187 396,608 22,421 Internal Service Funds
Fleet Management 47,816 48,016 66, 047 70,069 64,730 (5,339) Risk Management 87,662 73,203 70, 267 70,286 82,384 12,097 Subtotal Internal Service Funds 135,478 121,219 136, 314 140,356 147,114 6,758 Other Governmental Funds
4th R Program 6,161 5,991 5, 419 6,720 6,634 (86)
ARPA Reinvestment Fund - - - - (1,294) ( 1,294)
Assessment Reg and SDRIS 4 12 - - - -
CIP Reimbursable 18 - - - - -
Citation I-5 Maintenance 43 66 40 40 40 -
Cityw ide Low Income Housing 1,805 3,799 2, 970 2,970 2,200 (770) Cultural Services - Other 151 75 149 149 149 -
Debt Service Funds 4,897 4,566 11, 307 11,307 11,497 189 Development Services 932 1,126 3, 689 3,689 2,800 (889) Dow ntow n Impact Fee (645) (32) 50 50 - (50)
Dow ntow n Management District 3,908 3,950 4, 202 4,202 5,924 1,723 Externally Funded Programs 72 182 - - - -
Fairytale Tow n 85 80 50 50 50 -
Gas Tax 5,297 3,729 11, 769 7,393 8,275 882
Golf 344 336 365 365 539 174
Greenbriar Impact Fee (250) 76 - - - -
Delta Shores PF Impact Fee 5,986 - 2,500 2, 500 2,500 - Panhandle Impact Fee - - - - 400 400
Innovation and Grow th (14,038) 4,185 ( 12,294) (12,277) 5,257 17,534 Jacinto Creek 152 18 - - 25 25
Land Park 92 122 122 122 122 -
Library Services Parcel Tax 9,200 9,537 9, 989 9,989 10,349 360 Landscaping and Lighting 17,386 18,830 20, 561 20,146 21,557 1,412 Marina 2,165 2,382 2, 353 2,363 2,586 224
Measure A Maintenance 12,990 14,549 17, 830 17,830 16,913 (917) North Natomas Financing Plan 3,405 174 2,069 2, 069 6,768 4,699 Operating Grants 307 468 - - - -
Other 267 333 85 85 49 (36)
Other Capital Grants 41 - - - - -
Park Development (3,746) (216) 824 824 478 (346)
Private Development 187 273 - - - -
141
FY2025/26 Proposed Budget

Schedule 1A (continued)
Current Operations – Appropriations by Fund (in 000s)

Change
FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Actuals Actuals Approved Amended Proposed Proposed/Amended Other Governmental Funds (continued)
Quimby Act 10 4 10 10 10 -
Railyards Impact Fee (1,372) - 25 25 - (25)
Redevelopment Bond Funds - - 9 9 9 -
River District Impact Fee (885) - 125 125 - (125)
Sheraton MOPA Project 258 370 - - - -
SHRA CDBG - - 29 29 29 -
So Natomas Facility Benefit 17 4 - - - -
Special Districts 26,232 27,109 24,460 24,326 26,908 2,582 Special Districts - Capital 841 1,044 - - - -
Special Program Donations 17 23 250 250 250 -
STA RT 881 659 396 396 560 164
65th Street Area Impact Fee - - 15 15 - (15)
Transportation Development Impact Fee 96 20 - - - -
Traffic Safety 253 285 307 307 343 36
NMA Safety, Streets, Ped, Bic - - 6 6 4 (1)
Wastew ater Development Fees (724) 1,999 - - - -
Water Development Fees (1,118) (202) - - - -
Water Planning 1,392 885 1,108 1,111 1,641 530
Willow creek Fee District 49 - - - - -
Zoo 85 80 50 50 50 -
Subtotal Other Governmental Funds 83,248 106,892 110,837 107,243 133,624 26,381 Total $ 1,199,544 $ 1,271,179 $ 1,463,121 $ 1,453,804 $ 1,509,886 $ 56,082 142
FY2025/26 Proposed Budget

Schedule 1B
Current Operations – Appropriations by Department (in 000s)

Change
FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Actuals Actuals Approved Amended Proposed Proposed/Amended Mayor Offices
Mayor/Council $ 7,901 $ 8,265 $ 9,266 $ 11,111 $ 9,541 $ (1,570) Subtotal Mayor Offices 7,901 8,265 9,266 11,111 9,541 (1,570) Charter Offices
City Attorney 12,425 13,237 14,771 14,771 14,985 214
City Auditor 1,721 1,723 1,881 1,881 2,057 176
City Clerk 3,207 3,760 4,147 4,140 4,213 73
City Manager 11,675 12,420 2,697 2,697 15,666 12,969
City Treasurer 2,334 2,409 3,158 3,158 3,247 89
Subtotal Charter Offices 31,363 33,548 26,654 26,647 40,167 13,520 Operating Offices
Community Development 43,226 47,340 62,893 62,668 60,762 (1,907) Community Response 3,720 3,941 25,445 25,445 17,416 (8,028) Convention and Cultural Services 24,451 25,761 31,767 31,703 36,169 4,466 Finance 12,615 13,691 17,924 18,014 25,357 7,343
Fire 189,036 203,571 219,807 218,521 229,160 10,639
Human Resources 78,420 79,348 77,049 77,049 88,305 11,256 Information Technology 30,301 32,428 35,827 35,769 35,268 (501) Police 218,358 228,764 250,857 246,552 254,469 7,917
Public Works 178,177 181,785 240,924 232,143 237,415 5,272 Utilities 141,430 153,722 183,449 180,105 194,585 14,480 Youth, Parks, and Community Enrichment 54,483 61,375 67,088 66,246 65,968 (279) Subtotal Operating Offices 974,217 1,031,727 1,213,030 1,194,216 1,244,874 50,658 Other Offices
Cityw ide and Community Support 109,239 119,928 132,630 140,289 135,928 (4,361) Debt Service 100,057 99,978 105,168 105,168 105,381 213 Non-Appropriated (23,234) (22,268) (23,628) (23,628) (26,006) (2,378) Subtotal Other Offices 186,062 197,638 214,171 221,829 215,303 (6,526) Total $ 1,199,544 $ 1,271,179 $ 1,463,121 $ 1,453,804 $ 1,509,886 $ 56,082 143
FY2025/26 Proposed Budget

Schedule 1C
Staffing by Department (in Full-time Equivalents)

Change
FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Amended Amended Approved Amended Proposed Proposed/Amended Mayor Offices
Mayor/Council 40.00 46.00 46.00 43.00 43.00 -
Subtotal Mayor Offices 40.00 46.00 46.00 43.00 43.00 -
Charter Offices
City Auditor 10.00 10.00 10.00 10.00 10.00 -
City Manager 70.00 66.00 64.00 64.00 52.00 (12.00)
City Attorney 62.00 64.00 64.00 64.00 64.00 -
City Clerk 24.00 24.00 24.00 24.00 24.00 -
City Treasurer 14.00 14.00 14.00 14.00 14.00 -
Subtotal Charter Offices 180.00 178.00 176.00 176.00 164.00 (12.00) Operating Offices
Finance 93.90 94.90 94.00 94.00 103.00 9.00
Information Technology 202.50 208.50 202.50 202.50 202.50 - Human Resources 83.00 83.00 83.00 83.00 77.00 (6.00)
Police 1,128.96 1,135.16 1,119.50 1,119.50 1,092.50 (27.00) Fire 729.50 760.50 760.50 760.50 763.50 3.00
Utilities 572.90 582.18 589.18 599.18 607.18 8.00
Public Works 766.15 768.65 769.65 769.65 780.65 11.00
Convention and Cultural Services 123.00 119.00 124.50 124.50 124.50 - Youth, Parks, and Community Enrichment 737.23 752.72 709.87 709.87 674.00 (35.87) Community Development 315.00 319.00 318.00 318.00 315.00 (3.00) Community Response 38.00 37.00 37.00 38.00 38.00 -
Subtotal Operating Offices 4,790.14 4,860.61 4,807.70 4,818.70 4,777.83 (40.87) Other Offices
Citywide and Community Support 7.00 6.00 - - - -
Subtotal Other Offices 7.00 6.00 - - - -
Total 5,017.14 5,090.61 5,029.70 5,037.70 4,984.83 (52.87) 144
FY2025/26 Proposed Budget

Schedule 1D
Staffing by Fund (in Full-Time Equivalents)

Change
FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Amended Amended Approved Amended Proposed Proposed/Amended Governmental Funds
General
Mayor/Council 35.00 35.00 35.00 32.00 32.00 -
City Auditor 10.00 10.00 10.00 10.00 10.00 -
City Manager 29.00 30.00 30.00 30.00 20.00 (10.00)
City Attorney 62.00 64.00 64.00 64.00 64.00 -
City Clerk 24.00 24.00 24.00 24.00 24.00 -
City Treasurer 14.00 14.00 14.00 14.00 14.00 -
Finance 93.90 94.90 94.00 94.00 103.00 9.00
Information Technology 202.50 208.50 202.50 202.50 202.50 - Human Resources 44.00 44.00 44.00 44.00 39.00 (5.00)
Police 1,063.46 1,057.66 1,032.00 1,032.00 1,028.00 (4.00) Fire 711.50 742.50 742.50 742.50 746.50 4.00
Public Works 431.00 432.00 432.00 432.00 442.00 10.00
Convention and Cultural Services 5.00 - - - - -
Youth, Parks, and Community Enrichment 12.00 14.00 13.00 13.00 13.00 - Community Development 196.00 197.00 196.00 196.00 194.00 (2.00) Citywide and Community Support 1.00 - - - - -
Subtotal General Fund 2,934.36 2,967.56 2,933.00 2,930.00 2,932.00 2.00 Measure U
Mayor/Council 5.00 11.00 11.00 11.00 11.00 -
City Manager 39.00 34.00 32.00 32.00 30.00 (2.00)
Human Resources 3.00 3.00 3.00 3.00 2.00 (1.00)
Police 65.50 77.50 87.50 87.50 64.50 (23.00)
Fire 18.00 18.00 18.00 18.00 17.00 (1.00)
Public Works - 4.00 4.00 4.00 4.00 -
Convention and Cultural Services 19.95 24.95 25.95 25.95 23.95 (2.00) Youth, Parks, and Community Enrichment 575.89 589.38 547.93 547.93 490.61 (57.32) Community Development 119.00 122.00 122.00 122.00 121.00 (1.00) Community Response 38.00 37.00 37.00 38.00 38.00 -
Subtotal Measure U Fund 883.34 920.83 888.38 889.38 802.06 (87.32) Subtotal Governmental Funds 3,817.70 3,888.39 3,821.38 3,819.38 3,734.06 (85.32) Enterprise Funds
Community Center
Convention and Cultural Services 98.05 94.05 98.55 98.55 100.55 2.00 Parking
Public Works 61.25 60.75 60.75 60.75 60.75 -
Solid Waste
Public Works 184.30 183.30 183.30 183.30 184.30 1.00
Storm Drainage
Utilities 125.36 130.00 125.00 135.00 143.00 8.00
Wastewater
Utilities 94.18 94.00 94.00 94.00 94.00 -
Water
Utilities 353.36 358.18 364.18 364.18 364.18 -
Subtotal Enterprise Funds 916.50 920.28 925.78 935.78 946.78 11.00 145
FY2025/26 Proposed Budget

Schedule 1D (continued)
Staffing by Fund (in Full-Time Equivalents)

Change
FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Amended Amended Approved Amended Proposed Proposed/Amended Internal Service Funds
Fleet Management
Public Works 83.00 82.00 83.00 83.00 83.00 -
Risk Management Fund
Human Resources 17.00 17.00 17.00 17.00 17.00 -
Workers' Compensation Fund
Human Resources 19.00 19.00 19.00 19.00 19.00 -
Subtotal Internal Service Funds 119.00 118.00 119.00 119.00 119.00 - Other Government Funds
4th R Program
Youth, Parks, and Community Enrichment 133.10 133.10 132.70 132.70 133.45 0.75 Cty/Cnty Office-Water Planning
Citywide and Community Support 6.00 6.00 - - - -
Utilities - - 6.00 6.00 6.00 -
Innovation and Growth
City Manager 2.00 2.00 2.00 2.00 2.00 -
Marina
Public Works 6.60 6.60 6.60 6.60 6.60 -
START
Youth, Parks, and Community Enrichment 16.24 16.24 16.24 16.24 36.94 20.70 Subtotal Other Governmental Funds 163.94 163.94 163.54 163.54 184.99 21.45 Total 5,017.14 5,090.61 5,029.70 5,037.70 4,984.83 (52.87) 146
FY2025/26 Proposed Budget

Schedule 1E
Current Operations – Staffing and Appropriations by Department (in 000s)

*See Schedule 9 for Multi-Year Operating Projects (MYOPs) included in the Department Budget charts.

Total
FY2025/26 FY2025/26 Operating
Total FTE Operating MYOP* B udget
Mayor Offices
Mayor/Council 43.00 $ 9,536 $ 5 $ 9,541 Subtotal Mayor Offices 43.00 9,536 5 9,541
Charter Offices
City Auditor 10.00 2,057 - 2,057
City Manager 52.00 12,331 3,334 15,666
City Attorney 64.00 14,985 - 14,985
City Clerk 24.00 4,204 9 4,213
City Treasurer 14.00 3,246 1 3,247
Subtotal Charter Offices 164.00 36,823 3,344 40,167
Operating Offices
Finance 103.00 16,624 8,733 25,357
Information Technology 202.50 34,833 435 35,268
Human Resources 77.00 88,203 102 88,305
Police 1,092.50 244,380 10,089 254,469
Fire 763.50 227,950 1,210 229,160
Utilities 607.18 177,966 16,619 194,585
Public Works 780.65 227,523 9,892 237,415
Convention and Cultural Services 124.50 34,705 1,464 36,169 Youth, Parks, and Community Enrichment 674.00 64,498 1,470 65,968 Community Development 315.00 53,651 7,111 60,762
Community Response 38.00 5,910 11,507 17,416
Subtotal Operating Offices 4,777.83 1,176,243 68,632 1,244,874 Other Offices
Debt Service - 105,381 - 105,381
Cityw ide and Community Support - 126,286 9,643 135,928 Non-Appropriated - (26,006) - (26,006)
Subtotal Other Offices - 205,661 9,643 215,303
Total 4,984.83 $ 1,428,263 $ 81,623 $ 1,509,886 147
FY2025/26 Proposed Budget

Schedule 2A
Summary of Revenues, Appropriations, & Changes in Fund Balance (in 000s)

*Net Total excludes Internal Service Funs (ISF)
**Governmental Funds reflect General and Measure U Funds combined

Governmental** E nterprise
Internal
Service Other Gov't Gross Ne t*
Funds Funds Funds Funds Total Total
Current Resources
R evenues
Taxes $ 610,193 $ 34,744 - $ 37,919 $ 682,855 $ 682,855 Licenses and Permits 35,221 145 - 6,050 41,416 41,416, , Penalties 14,169 4,101 - 300 18,570 18,570te est, e ts, a d Concessions 4,265 6,527 1,654 9,388 21,834 20,180
Intergovernmental 20,918 4,294 - 37,367 62,578 62,578
Charges, Fees, and Services 111,607 364,638 9,373 73,045 558,664 549,291 Contributions from Other Funds 44,766 - - - 44,766 44,766 Miscellaneous Revenue 175 4,090 134,315 277 138,857 4,542 Total Current Resources 841,315 418,538 145,342 164,345 1,569,540 1,424,199 Current Requirements
Current Operations
Employee Services 701,748 137,130 16,446 6,613 861,938 845,491 Other Services and Supplies 205,476 109,250 97,070 38,299 450,095 353,025 City Property 2,829 2,146 26,170 218 31,363 5,193
Multi-Year Operating Projects 37,198 21,872 430 22,122 81,623 81,193 City Debt Service 16,567 71,431 45 17,339 105,381 105,336 Transfers (34,648) 8,520 1,674 24,454 - (1,674)
Labor and Supply Offset (94,332) 11,000 5,279 14,574 (63,479) (68,758) Contingency 2,000 - - - 2,000 2,000
Operating Transfers (4,299) 35,258 - 10,006 40,965 40,965 Subtotal Current Operations 832,539 396,608 147,114 133,624 1,509,886 1,362,772 Capital Improvements 15,085 63,390 207 58,621 137,303 137,096 Total Current Requirements 847,624 459,998 147,321 192,245 1,647,189 1,499,868 Other Fund Sources (Uses) 7,259 (250) 1,577 13,152 21,738 20,160 Total Surplus (Deficit) 950 (41,710) (403) (14,748) (55,911) (55,509) Beginning Fund Balance 12 221,894 626 262,761 485,293 484,667 E nding Fund Balance $ 962 $ 180,184 $ 223 $ 248,013 $ 429,382 $ 429,159 148
FY2025/26 Proposed Budget

Schedule 2B
Detail of Revenues, Appropriations, and Changes in Fund Balance (in 000s)

R esources
Other
Total Current Sources Surplus /
R evenues Operations CIP Total (U ses) (Deficit) Beginning E nding Governmental Funds
General Fund $ 706,310 $ 699,061 $ 12,010 $ 711,071 $ 31,469 $ 26,708 $ 21,251 $ 47,958 Measure U 135,005 133,478 3,075 136,553 (24,210) (25,758) (21,239) (46,996) Subtotal Governmental Funds 841,315 832,539 15,085 847,624 7,259 950 12 962 E nterprise Funds
Community Center 50,669 53,195 1,995 55,190 (250) (4,771) 26,851 22,080 Parking 20,314 19,320 1,022 20,342 - (28) 3,853 3,825
Solid Waste 97,935 89,164 575 89,738 - 8,196 52,494 60,690 Storm Drainage 44,966 47,678 39 47,718 - (2,751) 22,358 19,607 Storm Drainage Property Fee 20,307 7,633 12,240 19,873 - 434 23,306 23,740 Wastew ater 46,174 42,666 8,086 50,752 - (4,579) 23,955 19,376 Water 138,174 136,952 39,433 176,386 - (38,212) 69,077 30,865 Subtotal E nterprise Funds 418,538 396,608 63,390 459,998 (250) (41,710) 221,894 180,184 Internal Service Funds
Fleet Management 64,530 64,730 202 64,932 - (403) 626 223 Risk Management 80,812 82,384 5 82,389 1,577 - - -
Subtotal Internal Service Funds 145,342 147,114 207 147,321 1,577 (403) 626 223 Other Governmental Funds
4th R Program 6,686 6,634 200 6,834 - (147) 1,735 1,588 65th Street Area Impact Fee - - - - - - 632 632
Art In Public Places Projects - - - - - - 71 71
Assessment Reg and SDRIS - - - - - - 159 159
Cal EPA - - 557 557 - (557) 585 28
CIP Reimbursable - - 21 21 21 - - -
Capital Improv. Revenue Bonds - - - - - - 30 30
Citation I-5 Maintenance - 40 - 40 - (40) 576 536
Citation I-5 Improvements - - - - - - 6 6
Cityw ide Low Income Housing 2,200 2,200 - 2,200 - - 391 391 Cultural Services - Other 155 149 - 149 - 6 1,143 1,149 Debt Service Funds 10,980 11,497 - 11,497 517 - 3,065 3,065 Development Services 4,125 2,800 1,325 4,125 - - - -
Dow ntow n Impact Fee - - - - - - 3,553 3,553
Dow ntow n Management District 5,921 5,924 - 5,924 - (3) 137 133 Ethel MacLeod Hart Trust - - - - - - 2,053 2,053
Fair Share Contributions - - - - - - 6,239 6,239
Fairytale Tow n 50 50 - 50 - - 4 4
Federal Capital Grant - - 14,937 14,937 14,937 - - -
Florin Road Storm and San - - - - - - 8 8
Gas Tax 14,756 8,275 3,236 11,511 - 3,246 14,296 17,542 Golf 1,000 539 - 539 - 461 (560) (99)
Greenbriar Impact Fee - - - - - - 3,287 3,287
Innovation and Grow th 15,289 5,257 - 5,257 (5,792) 4,239 10,219 14,458 Jacinto Creek - 25 - 25 - (25) 1,872 1,847
I-5 Subregional Corridor Mitig - - - - - - 4,098 4,098
Land Park 23 122 - 122 - (99) 248 149
Library Services Parcel Tax 10,349 10,349 - 10,349 - - - - Landscaping and Lighting 21,344 21,557 2,055 23,613 - (2,269) 4,891 2,622 Major Street Construction 2,000 - 2,500 2,500 - (500) 8,443 7,943 Marina 2,044 2,586 200 2,786 - (742) 730 (12)
Measure A Construction - - 639 639 639 - - -
Measure A Maintenance 16,190 16,913 385 17,298 - (1,108) 10,966 9,858 Requirements Fund Balance
149
FY2025/26 Proposed Budget

Schedule 2B (continued)
Detail of Revenues, Appropriations, and Changes in Fund Balance (in 000s)

R esources
Other
Total Current Sou rces Surplus /
R evenues Operations CIP To tal (U ses) (Deficit) Beginning E nding Other Governmental Funds (continued)
NMA Traffic Control & Safety 1,619 - 2,680 2, 680 373 (688) 688 - NMA Safety, Streets, Ped, Bic 2,379 4 2,620 2, 624 - (245) 1,170 925 North Natomas Financing Plan 325 6,768 12 6, 779 - (6,454) 33,583 27,129 Other - 49 - 49 - (49) 7, 730 7,681
Other Capital Grants - - 4,082 4, 082 4,082 - - -
Park Development 826 478 5,865 6, 343 - (5,517) 31,392 25,875 Quimby Act 100 10 - 10 - 90 4,083 4, 173
Railyards Impact Fee 50 - - - - 50 2,283 2, 333
Redevelopment Bond Funds - 9 - 9 - (9) 6, 540 6,531
River District Impact Fee - - - - - - 9,372 9, 372
SHRA CDBG 29 29 - 29 - - - -
So Natomas Comm Improv - - - - - - 57 57
So Natomas Facility Benefit - - - - - - 2,145 2, 145
So Natomas I-5 Developer Impr - - - - - - 649 649
Special Districts 27,086 26,908 - 26,908 - 178 15,434 15,611 Special Districts - Capital - - - - - - 2,219 2, 219
Special Program Donations 250 250 - 250 - - - -
STA RT 658 560 - 560 - 97 - 97
Sunset, Meadow s A/D Maint - - - - - - 233 233
Trench Cut Fee - - 25 25 - (25) 50 25
Transportation Development 586 - 640 640 37 (17) 17 -
Transportation Dev Impact Fee 1,000 - - - - 1,000 1, 728 2,728 Traffic Safety 300 343 - 343 6 (37) 37 -
Transportation System Management - - - - - - 1 1
Tree Planting Replacement 120 - 120 120 - - 22 22
Road Maint and Rehabilitation 13,654 - 13,636 13, 636 - 18 4,171 4,189 Wastew ater Development Fees - - 2,000 2, 000 - (2,000) 10,352 8,352 Water Development Fees - - 1,000 1, 000 - (1,000) 42,727 41,727 Water Planning 1,701 1,641 - 1,641 - 59 826 885
Willow creek Fee District - - - - - - 2,407 2, 407
Zoo 50 50 - 50 - - 2 2
Subtotal Other Governmental Funds 164,345 133,624 58, 621 192,245 13,152 (14,748) 262,761 248,013 Total $ 1,569,540 $ 1,509,886 $ 137,303 $ 1, 647,189 $ 21,738 $ (55,911) $ 485,293 $ 429,382 Requirements Fund Balance
150
FY2025/26 Proposed Budget

Schedule 2C
Summary of Revenues, Expenditures, and Budgeted Fund Balances (in 000s) 10000+

*Governmental Funds reflect General, and Measure U Funds combined.

FY2021/22 FY2022/23 FY2023/ 24 FY2024/25 FY2025/26
Approved Approved App roved Approved Proposed
Governmental Funds*
Revenues $ 665,245 $ 743,069 $ 770, 820 $ 813,707 $ 841,315 Total Resources 665,245 743,069 770, 820 813,707 841,315 E xpenses
Operations 666,956 723,702 757, 771 832,180 832,539
CIP 14,623 18,096 14, 217 15,092 15,085
Total Requirements 681,579 741,799 771, 988 847,272 847,624 Other Fund Sources (Uses) 15,913 1,089 893 30, 988 7,259 Beginning Fund Balance 589 4,761 731 3, 334 12
E nding Fund Balance 168 7,120 457 757 962
E nterprise Funds
Revenues 330,673 373,458 392, 942 405,034 418,538
Total Resources 330,673 373,458 392, 942 405,034 418,538 E xpenses
Expenses 318,333 350,316 354, 494 383,789 396,608
CIP 41,165 43,527 48, 197 35,136 63,390
Total Requirements 359,498 393,842 402, 691 418,925 459,998 Other Fund Sources (Uses) (3,071) (250) 163 2, 560 (250) Beginning Fund Balance 239,840 248,632 144, 975 179,391 221,894 E nding Fund Balance 207,944 227,998 135, 388 168,060 180,184 Internal Service Funds
Revenues 103,762 121,562 123, 536 138,952 145,342
Total Resources 103,762 121,562 123, 536 138,952 145,342 E xpenses
Expenses 102,598 121,585 122, 375 136,314 147,114
CIP 209 202 202 208 207
Total Requirements 102,807 121,787 122, 577 136,522 147,321 Other Fund Sources (Uses) (1,597) 298 (1,231) (999) 1,577 Beginning Fund Balance 2,646 403 573 527 626
E nding Fund Balance 2,005 476 301 1,957 223
Other Governmental Funds
Revenues 126,393 138,135 146, 735 157,829 164,345
Total Resources 126,393 138,135 146, 735 157,829 164,345 E xpenses
Expenses 108,720 121,829 127, 274 110,837 133,624
CIP 39,534 70,265 44, 754 64,983 58,621
Total Requirements 148,254 192,094 172, 029 175,819 192,245 Other Fund Sources (Uses) (658) 38,007 10, 487 5,645 13,152 Beginning Fund Balance 161,403 190,936 195, 751 228,173 262,761 E nding Fund Balance $ 138,883 $ 174,984 $ 180, 945 $ 215,828 $ 248,013 151
FY2025/26 Proposed Budget

Schedule 3
Contributions to General Fund Support (in 000s)

Cost* In-Lieu In-Lieu Voter Approved
Allocation Property Franchise General
Plan Tax Tax Tax
Fund FY2024/25 FY2025/26 F Y2024/ 25 FY2025/26 FY2024/25 FY2025/26 FY2024/25 FY2025/26 Enterprise Funds
Community Center 2,497$ 3,749$ 456$ 456$ 1,707$ 2,287$ - - Parking 1,489 1,523 244 248 1,548 1,809 - - Solid Waste 4,377 4,934 - - - - 10,504 10,504 Storm Drainage 2,009 2,888 - - - - 4,400 4,456 Storm Drainage Property Fee - - - - - - 2,178 2,178 Wastewater 1,465 2,156 - - - - 4,669 4,709 Water 7,564 5,929 - - - - 14,429 14,318 Total Enterprise Funds 19,400 21,179 700 704 3,255 4,097 36,180 36,165

Internal Service Funds
Fleet Management 2,625 2,218 - - - - - - Risk Management 2,103 3,057 - - - - - - Total Internal Service Funds 4,728 5,274 - - - - - - Water Planning Funds
Water Forum - 52 - - - - - - Total Water Planning Funds - 52 - - - - - - GRA ND TOTA L 24,128$ 26,506$ 700$ 704$ 3,255$ 4,097$ 36,180$ 36,165$ *COST ALLOCATION PLAN
Mos tof the City’s centralized services reside in the General Fund. Each year a study is conduc ted to identify and assign each fund’s fair share of these centralized service costs on a reasonable and consistent manner. Then these charges are incorporated in non-General Fund departments Budget.
152
FY2025/26 Proposed Budget

Schedule 4
Summary of Capital Funding by Funding Source (in 000s)

Fund Description
Budget
Through
02/2025 FY2025/26 FY2026/27 FY2027/28 FY2028/29 FY2029/30 Total
Five-year
Funding
1001: General Fund $ 208,827 $ 12,010 $ 11,990 $ 11,461 $ 11,441 $ 11,441 $ 58,341 1003: ARPA Reinvestment Fund 4,527 (114) - - - - (114)
2001: Sacto Transp.Sales Tax-Cip. 1,029 - - - - - -
2002: Gas Tax 2016 24,166 3,236 1,986 1,986 1,986 1,986 11,178 2007: Major Street Construction 23,844 2,500 2,500 2,500 2,500 2,500 12,500 2008: Trench Cut Fee 148 25 25 25 25 25 126
2012: Transportation System Management 380 - - - - - -
2013: Transportation Development 3,166 640 640 640 640 640 3,200 2016: Development Services 20,447 1,325 63 1,494 30 1,589 4,501 2019: Citation I-5 Improvements 420 - - - - - -
2020: So Natomas Comm Improv 677 - - - - - -
2021: So Natomas Facility Benefit 2,820 - - - - - -
2023: New Measure A Specific Project 16,837 639 - - - - 639 2025: New Measure A Construction 2,559 - - - - - -
2026: New Measure A Maintenance 3,360 385 385 385 385 385 1,925 2028: Prop 1B - Local Street & Road 21 - - - - - -
2031: Innovation and Grow th 551 - - - - - -
2032: Fair Share Contributions 355 - - - - - -
2033: I-5 Subregional Corridor Mitig 239 - - - - - -
2035: Tree Planting Replacement 1,250 120 120 120 120 120 600 2036: Road Maint and Rehabilitation 33,851 13,636 14,181 14,748 15,338 15,338 73,241 2038: NMA Traffic Control & Safety 10,209 2,680 1,580 1,580 1,580 1,580 9,000 2039: NMA Safety, Streets, Ped, Bic 15,160 2,620 2,620 2,620 2,620 2,620 13,100 2220: Sunset, Meadow s A/D Maint 1,600 - - - - - -
2230: N Natomas Lands CFD 3 569 - - - - - -
2232: Landscaping and Lighting 5,799 2,055 805 805 805 805 5,276 2235: Florin Road Storm and San 90 - - - - - -
2245: NW Land Park CFD 2013-02 72 - - - - - -
2401: Measure U 50,819 3,075 3,000 3,000 3,000 3,000 15,075 2502: Special Program Donations 287 - - - - - -
2504: Special Recreation 842 - - - - - -
2507: Land Park 137 - - - - - -
2508: Quimby Act 2,880 - - - - - -
2601: Old Sac Market 159 - - - - - -
2603: Golf 93 - - - - - -
2605: Zoo 1 - - - - - -
2608: Marina 807 200 120 120 120 120 680
2700: Block Grant/Housing & Redev 6,091 - - - - - -
2701: Disaster Relief Act 3 - - - - - -
2703: Externally Funded Programs 669 - - - - - -
2801: Cal EPA - 557 - - - - 557
3001: 1993 Series B Cop 600 - - - - - -
3002: 2002 Capital Improv. Revenue Bonds 2 - - - - - -
3003: 2003 Capital Improv. Revenue Bonds 42 - - - - - - 3004: 2006 CIRB - Tax Exempt 3,623 - - - - - -
3005: 2006 CIRB - Taxable 361 - - - - - -
3006: 2006 CIRBs Ser C Cap Projs 115 - - - - - -
3008: Willow creek Fee District 788 - - - - - -
3201: N. Natomas Financial Plan 171 - - - - - -
3202: Railyards/Richards/Dow ntow n 359 - - - - - -
3204: Park Development 23,006 5,865 - - - - 5,865
3206: NNFP Public Facilities Fee 236 12 12 12 12 12 58
3215: Transportation Development Impact Fee 6,336 - - - - - - 3216: Greenbriar Impact Fee 18 - - - - - -
3314: N Natomas Drng CFD 97-01 418 - - - - - -
3317: N Natomas CFD #2 Const 232 - - - - - -
153
FY2025/26 Proposed Budget

Schedule 4 (continued)
Summary of Capital Funding by Funding Source (in 000s)

Fund Description
Budget
Through
02/2025 FY2025/26 FY2026/27 FY2027/28 FY2028/29 FY2029/30 Total
Five-year
Funding
3320: NN Westlake CFD 2000-01 Const 379 - - - - - -
3323: CFD 97-01 Series C 68 - - - - - -
3328: N Natomas Drng 2005 CFD 97-01 551 - - - - - -
3333: CFD 97-01 Construction 247 - - - - - -
3338: Florin Depot Industrial Park 569 - - - - - -
3349: AD-RADII 1,569 - - - - - -
3701: Sacto Housing & Redev Agency 3,703 - - - - - -
3702: CIP Reimbursable 26,631 21 21 21 21 21 105
3703: Federal Capital Grant 84,973 14,937 12,780 - - - 27,717 3704: Other Capital Grants 94,360 4,082 2,107 4,314 - - 10,503 3803: 2006 Army Depot TE 220 - - - - - -
5015: Winchester G & Mary Alice Felt 696 - - - - - -
6001: Water Development Fees 27,899 1,000 1,000 1,000 1,000 1,000 5,000 6002: Wastew ater Development Fees 517 2,000 2,000 - - - 4,000 6004: Parking 34,934 1,022 920 920 920 920 4,702
6005: Water 136,472 39,433 29,341 25,908 25,501 25,501 145,684 6006: Wastew ater 19,991 8,086 13,923 7,095 5,360 3,003 37,467 6007: Recycling and Solid Waste 33,935 575 358 558 746 487 2,722 6008: Landfill Closure 5,195 - - - - - -
6009: Sacramento Marina 874 - - - - - -
6010: Community Center 23,818 1,995 1,475 1,425 1,400 1,400 7,695 6011: Storm Drainage 16,101 39 - - - - 39
6012: 4th R Program 467 200 - - - - 200
6021: Storm Drainage Property Fee 21,874 12,240 11,891 11,789 12,111 11,958 59,989 6205: Water Grant Reimbursement 5,780 - - - - - -
6206: Wastew ater Grant Reimbursement 5,272 - - - - - - 6207: Solid Waste Grant Reimbursement 721 - - - - - -
6211: Storm Drainage Grant Reimbursement 8,725 - - - - - - 6310: Water Revenue Bonds 1,075 - - - - - -
6320: Wastew ater Revenue Bonds 64 - - - - - -
6321: Wastew ater Revenue Bonds 2019 2,282 - - - - - -
6330: 2018 TOT Revenue Bonds, Tax Exempt 294,180 - - - - - - 6331: 2018 TOT Revenue Bonds, Taxable 20,033 - - - - - - 6332: 2019 STID Revenue Bonds 53,912 - - - - - -
6501: Fleet Management 9,052 202 202 202 202 202 1,010
6502: Risk Mgmt 309 5 - - - - 5
Total $ 1,419,514 $ 137,303 $ 116,044 $ 94,727 $ 87,861 $ 86,651 $ 522,587 154
FY2025/26 Proposed Budget

Schedule 5
Article XIIIB Appropriation Limit Calculation (in 000s)

"GANN" Appropriations Limit
In November 1979, the voters of the State of California approved Proposition 4, commonly known as the "Gann Initiative." The Proposition created Article XIIIB of the State Constitution, placing certain limits on the amount of revenue that can be appropriated each fiscal year. The limit is based on actual appropriations during FY1978/79 (base year) and is recalculated each fiscal year based on certain inflation and population factors. Only those revenues that are considered "proceeds of taxes" are subject to the limit. Proceeds of taxes are, however, allowed to be spent on several types of appropriations that do not count against the limit, including voter approved debt, the costs of complying with court orders and federal mandates, and expenditures for qualified capital outlays. The City is in compliance with Article XIIIB for each of the fiscal years as shown below.

APPROPRIATION LIMIT (Section 1) FY2021/22 FY2022/23 FY2023/24 FY2024/25 FY2025/26 Prior year limit 890,747$ 945,554$ 1,016,435$ 1,064,006$ 1,104,507$ Multiply by:

Change in CPI or Per Capita Personal Income 1.0573 1.0755 1.0444 1.0362 1.0362 Change in Population 1.0040 0.9995 1.0023 1.0018 1.0018 Total Appropriation Limit 945,554$ 1,016,435$ 1,064,006$ 1,104,507$ 1,146,551$ PROCEEDS OF TAXES (Section 2)
Total governmental revenue 791,638$ 881,204$ 917,555$ 971, 536$ 1,005,660$ Add taxes in enterprise funds:

Transient Occupancy Tax 18,628 26,359 33,872 34,460 34,661 Add user fees in excess of cost: - - - - - Deduct:

Non-proceeds of tax revenue (251,937) (270,816) (289,279) (322,568) (352,915) General obligation debt service - - - - - Qualified capital outlay (7,793) (15,454) (12,177) (18,882) (33,183) Total Proceeds of Taxes 550,536$ 621,293$ 649,971$ 664,546$ 654,222$ APPROPRIATIONS SUBJECT TO LIMIT (Section 3)
Total Governmental Funds:

Operating appropriations 775,676$ 845,531$ 885,045$ 943,017$ 966,163$ CIP appropriations 54,157 88,361 58,971 80,066 73,706 Add:

Enterprise fund tax appropriation 18,628 26,359 33,872 34,460 34,661 User fees in excess of cost - - - - - Current proceeds of taxes
appropriated to reserves 7,922 20,970 12,529 19,447 33,883 Deduct:

Non-proceeds of tax revenue (251,937) (270,816) (289,279) (322,568) (352,915) General obligation debt service - - - - - Qualified capital outlay (7,793) (15,454) (12,177) (18,882) (33,183) Total Appropriations Subject to Limit 596,653$ 694,951$ 688,961$ 735,540$ 722,314$ 155
FY2025/26 Proposed Budget

Schedule 6
Revenue Budget (in 000s)

FY2022/23 FY2023/24 FY2024/ 25 FY2024/25 FY2025/26
Actuals Actuals App roved Amended Proposed
Governmental Funds
Taxes
Property Taxes - Current Secured $ 141,959 $ 151,670 $ 154, 979 $ 157,615 $ 163,920 Property Taxes - Current Unsecured 4,832 5,487 4, 768 4,768 4,987 Property Taxes - In Lieu VLF 58,863 63,259 65, 791 66,512 68,508 Property Taxes - Prior Secured 1,209 1,579 1, 203 1,203 1,318 Property Taxes - Prior Unsecured 50 51 80 80 65
Property Taxes - Redevelopment Passthrough 3,101 3,581 2, 814 2,814 3,146 Property Taxes - Supplemental 5,405 3,548 3, 704 3,704 4,495 Subtotal Property Taxes 215,419 229,176 233, 338 236,696 246,439 Business Operations Taxes (BOT) 8,942 10,015 8, 775 8,775 8,863 Cannabis Business Operations Tax (CBOT) 22,613 23,352 23, 322 24,209 23,322 General Sales and Use Taxes 237,199 238,365 246, 322 235,660 236,843 Property Taxes - Resident Development 802 537 916 916 888 Public Safety Sales Tax 8,629 8,350 9, 033 9,033 9,412
Real Property Transfer Taxes 11,776 10,446 9, 691 12,373 9,691 Transient Occupancy Tax 6,133 6,651 6, 892 6,892 6,932
Transient Occupancy Tax - Prior 94 225 - - -
Utility Users Tax - Current 69,403 63,993 67, 465 70,444 67,802 Utility Users Tax - Prior 126 141 - - -
Subtotal Other Taxes 365,717 362,075 372, 415 368,303 363,753 Total Taxes 581,135 591,250 605, 754 604,999 610,193
Licenses and Permits
Alley Parking Permit 14 12 - - -
Alley Parking Permits 1 - 3 3 3
Animal Licenses 407 503 520 520 570
Building Trades Certification - - 1 1 1
Burglar Alarm Permits 919 865 1,000 1, 000 1,000
Business Permits and Licenses 415 478 459 459 459
Cellular Revocable Permits 1,633 1,788 1, 769 1,769 1,837 Construction Permits 12,048 11,046 12, 704 12,704 13,104 Dance Permits 43 37 10 10 10
Emergency Permits 4 2 7 7 7
Excavation Permits 98 33 43 43 43
Home Occupation Permits 192 157 170 170 170
Marijuana Cultivation Permit 1,530 1,654 1, 558 1,558 1,558 Marijuana Delivery Permit 632 497 484 484 484
Marijuana Dispensary Permit 575 666 624 624 624
Marijuana Manufacturing Permit 177 165 280 280 280
Marijuana Other Business Permit 706 796 666 666 666
Miscellaneous Licenses and Permits 14 15 10 10 10
Neighborhood Responsibility 114 1 - - -
On-Site Plan Review Permit 58 69 87 87 87
Plan Check Fees 9,643 6,166 10, 254 10,254 10,254
Sign and Billboard Permit 38 32 63 63 63
Sign and Billboard Permits 271 288 240 240 240
Special Event Permits 441 643 273 273 273
Special Events Permits - - - - 13
Special Use Permits 1,985 2,223 3, 343 3,343 3,343
156
FY2025/26 Proposed Budget

Schedule 6 (continued)
Revenue Budget (in 000s)

FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26
Actuals Actuals Approved Amended Proposed
Governmental Funds
Licenses and Permits (continued)
Street Vendor Permits 27 16 20 20 20
Taxi Permits 22 36 20 20 20
Tow ing Vehicle Permits 32 36 84 84 84
Subtotal Licenses and Permits 32,037 28,222 34,690 34,690 35,221 F ines, F orfeitures, and Penalties
Delinquency Charges 99 117 - - -
Fines and Penalties 8,980 9,752 9,088 9,088 14,169
Transient Occupancy Tax - Penalty 32 5 - - -
Subtotal Fines, Forfeitures, and Penalties 9,112 9,874 9,088 9,088 14,169 Interest, Rents, and Concessions
Interest on Investments 4,007 5,496 5,750 5,750 3,700
Interest on Receivables 794 1,076 336 336 336
Real Property Rental 537 644 229 229 229
Subtotal Interest, Rents, and Concessions 5,338 7,217 6,315 6,315 4,265 Intergovernmental
Fire District Reimbursement 6,995 9,834 9,775 9,775 10,125 Miscellaneous Governmental Revenue 6,472 7,265 4,601 4,601 4,561 Miscellaneous Other Federal 10,730 19,263 1,210 1,210 1,210 Other Agency Payments 1,552 1,650 354 354 1,235
Other County Payments 208 647 425 425 425
Other Recoveries 749 701 183 183 183
Other State Payments 1,004 1,512 127 127 127
P.O.S.T. Reimbursement 55 137 167 167 167
Planning Technology Fee - - - - 400
Redevelopment Agency Services 430 561 460 460 460
Sacramento County Support - Metro Arts 388 388 - - -
Sacramento County Support - Museums 258 258 258 258 258 State Government Grants - Op - Ncat - 4 - - -
State Homeow ners Property Tax 1,082 1,066 1,045 1,045 1,045 State Mandated Reimbursement SB 90 386 1,116 212 212 212 State Motor Vehicle In Lieu Tax 533 643 501 501 511
Subtotal Intergovernmental 30,844 45,044 18,609 18,609 20,918 Charges, F ees, and Services
Administrative Fee 655 734 748 748 725
ALS Fees 28,585 26,284 47,000 47,000 52,500
Animal Shelter Fees and Charge 269 293 340 340 340
Appeal Fees 8 5 - - -
City Attorney Fees 2 2 - - -
Code Enforcement Fee 3,959 4,541 3,421 3,421 7,850
Community Services Fees 1,188 1,338 2,752 2,752 2,925
Compliance Fee 1,543 1,311 448 448 1,228
Concessions 85 113 68 68 68
Concessions - Golf 2 1 - - -
Demolition Charges 456 442 417 417 417
157
FY2025/26 Proposed Budget

Schedule 6 (continued)
Revenue Budget (in 000s)

FY2022/23 FY2023/24 FY2024/ 25 FY2024/25 FY2025/26
Actuals Actuals App roved Amended Proposed
Governmental Funds
Charges, Fees, and Services (continued)
DUI Fees 106 24 77 77 77
EIS Fees 6 - - - -
Facility Use Fees 3,283 3,069 2, 378 2,378 2,573
Fire Permit Fees 1,124 741 1,326 1, 326 1,877
Franchise Fees 9,627 8,758 9, 275 9,275 9,520
Housing and Dangerous Buildings 89 88 111 111 111
Jail Booking Fee Recovery - - 40 40 40
Miscellaneous Proprietary Revenue 17 55 32 32 32
Other Departmental Service 10,980 10,061 8, 805 8,805 7,373 Other Fees 270 344 1 1 1
Other General Fees and Charges 137 319 10 10 10
Parking Fees 10 21 347 347 1,489
Parking Meter Receipts 10,343 10,216 11, 523 11,523 17,561 Parking Meter Removal Fees 505 668 520 520 520
Real Property Transfer Penalty - 2 - - -
Recyclables Sales 3 7 - - -
Registration Fees 158 178 244 244 244
Service Fees 197 12 100 100 100
Special Assessments - Administ 499 565 230 230 230
Special Assessments - Business 1 - - - -
Street Sidew alk and Curb Repair 2,699 3,406 3, 063 3,063 3,063 Subdivision Map Processing - Planning - 2 30 30 30
Sw imming Pool Fees 389 425 702 702 702
Third Party Recoveries - Property 1 - - - -
Third Party Recoveries - Vehicle 229 224 - - -
Tour Fees 6 1 - - -
Vehicle Abatement SAVSA 64 - - - -
Subtotal Charges, Fees, and Services 77,219 74,200 94, 007 94,007 111,607 Contributions from Other Funds
Contributions from Other Funds Accounts 40,644 44,481 43, 935 43,935 44,766 Subtotal Contributions from Other Funds 40,644 44,481 43, 935 43,935 44,766 Miscellaneous R evenues
Escheat 223 128 242 242 175
Gifts and Donations 1 1 - - -
One-time Budgeted Revenue Adj - - 1,066 2, 755 -
Sale of Real or Personal Property 227 11 - - -
Subtotal Miscellaneous Revenue 451 140 1,308 2, 997 175 Total General Funds $ 776,781 $ 800,428 $ 813, 707 $ 814,641 $ 841,315 158
FY2025/26 Proposed Budget

Schedule 6 (continued)
Revenue Budget (in 000s)

FY2022/23 FY2023/24 FY2024/ 25 FY2024/25 FY2025/26
Actuals Actuals App roved Amended Proposed
E nterprise Funds
Community Center
Box Office Fees $ 1,363 $ 802 $ 1,100 $ 1, 100 $ 1,100 Catering Fees 2,790 3,115 1, 602 1,602 3,345
Concessions 197 283 300 300 320
Facility Use Fees 5,624 6,692 3, 418 3,418 6,510
Interest on Investments 1,149 1,573 550 550 550
Miscellaneous Governmental Revenue 124 65 80 80 95
Other Fees 862 1,006 900 900 900
Real Property Rental 1,629 1,461 701 701 1,832
Registration Fees - 2 - - -
Royalties 866 850 866 866 850
Service Fees 435 366 641 641 420
Transient Occupancy Tax 30,663 33,253 34, 460 34,460 34,661 Transient Occupancy Tax - Penalty 162 (125) 3 3 3
Transient Occupancy Tax - Prior 469 1,126 83 83 83
Subtotal Community Center 46,332 50,468 44, 705 44,705 50,669 Parking
Administrative Fee 735 914 803 803 1,203
Delinquency Charges 3 2 - - -
Facility Use Fees 18 18 - - -
Interest on Investments 462 459 300 300 300
Miscellaneous Governmental Revenue (12) 14 - - -
Other Fees 64 95 20 20 20
Other General Fees and Charges 55 299 - - -
Other Recoveries 56 30 - - -
Parking Fees 15,048 16,290 17, 229 17,229 18,091
Real Property Rental 716 778 615 615 615
Royalties 75 89 40 40 40
Vehicle or Equipment Rental 49 49 45 45 45
Subtotal Parking 17,268 19,036 19, 052 19,052 20,314
Solid Waste
Delinquency Charges - 748 - - 1,070
Facility Use Fees 195 219 182 182 219
Fines and Penalties (3) - - - -
Interest on Investments 777 1,399 750 750 750
Miscellaneous Governmental Revenue 139 140 - - -
Miscellaneous Proprietary Revenue 26 19 - - -
Other Agency Payments 86 77 33 33 33
Other Departmental Services 20 13 - - -
Other Fees - - 101 101 101
Recyclables Sales 1,098 412 100 100 100
Sale of Real or Personal Property 14 6 - - -
Service Fees 158 156 - - -
Utility Services Charges 86,095 91,595 95, 663 95,663 95,663 Subtotal Solid Waste 88,604 94,785 96, 828 96,828 97,935 159
FY2025/26 Proposed Budget

Schedule 6 (continued)
Revenue Budget (in 000s)

FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26
Actuals Actuals Approved Amended Proposed
E nterprise Funds (continued)
Storm Drainage
Compliance Fee 66 59 100 100 70
Delinquency Charges - 298 400 400 421
Drainage Impact Fee (17) (17) - - -
Impact Admin Fees - - 2 2 2
Interest on Investments 869 1,268 440 440 540
Interest on Receivables 33 31 - - -
Miscellaneous Governmental Revenue 32 13 - - -
Miscellaneous Proprietary Revenue 16 8 - - -
One-time Budgeted Revenue Adj - - - - 3,200
Other Agency Payments 5 97 - - -
Other Fees 32 20 20 20 34
Other Recoveries 76 30 - - -
Plan Check Fees 45 70 85 85 85
Sale of Real or Personal Property 149 - - - -
Service Fees 44 31 - - -
Subdivision Map Processing - Engineering 5 4 4 4 4
Utility Services Charges 39,995 40,486 40,100 40,100 40,611 Subtotal Storm Drainage 41,350 42,399 41,150 41,150 44,966 Storm Drainage Property Fee
Delinquency Charges - 144 150 150 207
Interest on Investments 145 560 100 100 100
Miscellaneous Proprietary Revenue - 1 - - -
Service Fees - 5 - - -
Utility Services Charges 19,612 19,534 20,000 20,000 20,000 Subtotal Storm Drainage Property Fee 19,757 20,245 20,250 20,250 20,307 Wastewater
Delinquency Charges - 643 820 820 1,000
Impact Admin Fees - 7 93 93 10
Interest on Investments 1,062 1,638 430 430 430
Miscellaneous Governmental Revenue (14) - - - -
Miscellaneous Proprietary Revenue 20 21 48 48 30
Other Agency Payments 13 - - - -
Other Recoveries (10) 8 - - -
Regional Sanitation District 1,737 1,645 1,350 1,350 1,536 Service Fees 57 78 75 75 80
Sew er Permits 87 91 97 97 85
Subdivision Map Processing - Engineering 3 4 3 3 3
Utility Services Charges 42,963 43,463 42,639 42,639 43,000 Subtotal Wastewater 45,918 47,598 45,554 45,554 46,174
Water
Cellular Revocable Permits 78 94 55 55 60
Delinquency Charges - 829 1,200 1,200 1,400
Fines and Penalties 1 - - - -
Fire Hydrant Use Fee 49 61 50 50 63
160
FY2025/26 Proposed Budget

Schedule 6 (continued)
Revenue Budget (in 000s)

FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26
Actuals Actuals Approved Amended Proposed
E nterprise Funds
Water (continued)
Impact Admin Fees - 11 160 160 160
Interest on Investments 4,128 6,196 865 865 1,365
Miscellaneous Governmental Revenue 62 19 60 60 30
Miscellaneous Proprietary Revenue 38 29 75 75 75
Other Agency Payments 1,457 1,838 1,600 1,600 2,600
Other Bonds Issued 107 727 - - -
Other Fees 33 76 50 50 80
Other Recoveries 33 7 - - -
Park Impact Fee 61 - - - -
Public Facilities Impact Fee (96) - - - -
Residential Construction Water 135 51 91 91 51
Service Fees 108 107 220 220 220
Special Item Revenue 4,710 - - - -
Subdivision Map Processing - Engineering 3 4 3 3 3
Utility Service Extensions 30 3 20 20 20
Utility Services Charges 127,495 128,525 131,691 131,691 130,691 Water Flow Test Fee 205 197 220 220 220
Water Tap Sales 1,049 1,236 1,135 1,135 1,135
Subtotal Water 139,686 140,010 137,496 137,496 138,174
Total E nterprise Funds $ 398,914 $ 414,540 $ 405,034 $ 405,034 $ 418,538 161
FY2025/26 Proposed Budget

Schedule 6 (continued)
Revenue Budget (in 000s)

FY2022/23 FY2023/24 FY2024/ 25 FY2024/25 FY2025/26
Actuals Actuals App roved Amended Proposed
Internal Service Funds
F leet Management
Fleet Charges Accident Repair $378 $1,394 $902 $902 $794 Fleet Charges O & M 21,539 21,547 26, 821 26,821 26,419 Fleet Vehicle Revenue 42,325 32,094 27, 921 32,008 26,130 Gasoline and Oil Sales 10,252 9,161 10, 083 10,083 9,223 Interest on Investments 565 975 200 200 200
Miscellaneous Governmental Revenue 8 3 - - -
Miscellaneous Other Federal 110 89 - - -
Other Recoveries 21 29 - - -
Sale of Real or Personal Property-Salvage 872 1,162 856 856 858 Vehicle or Equipment Rental 926 958 897 897 906
Subtotal Fleet Management 76,995 67,412 67, 680 71,767 64,530 R isk Management
Interest on Investments 2,318 2,949 500 500 500
Interest on Receivables 78 102 54 54 48
Other Departmental Services 1,314 1,067 - - -
Risk Fund In-Lieu Insurance 53,900 61,099 70, 468 70,468 80,114 Service Fees - - - (100) ( 100)
Third Party Recoveries - Liability - 40 - - -
Third Party Recoveries - Property 730 1,272 250 250 250 Third Party Recoveries - Vehicle 1 - - - -
Third Party Recoveries Workers' Compensation - 1 - - -
Subtotal Risk Management 58,361 66,550 71, 272 71,172 80,812 Total Internal Service Funds $135,356 $133,962 $138, 952 $142,939 $145,342 162
FY2025/26 Proposed Budget

Schedule 6 (continued)
Revenue Budget (in 000s)

FY2022/23 FY2023/24 FY2024/ 25 FY2024/25 FY2025/26
Actuals Actuals App roved Amended Proposed
Other Governmental Funds
4th R Program $ 5,885 $ 6,715 $ 5, 406 $ 6,686 $ 6,686 65th Street Area Impact Fee 503 17 - - -
ARPA Reinvestment Fund 1,310 1,476 - - -
Art In Public Places Projects 8 12 - - -
Assessment Reg and SDRIS 3 4 - - -
Cal EPA 245 37 - - -
Capital Improv. Revenue Bonds 4 5 - - -
CIP Reimbursable 18 189 - - -
Citation I-5 Improvements 3 1 - - -
Citation I-5 Maintenance 12 16 - - -
Cityw ide Low Income Housing 2,846 2,909 2, 970 2,970 2,200 Cultural Services - Other 197 206 155 155 155
Debt Service Funds 4,670 5,001 10, 707 10,707 10,980
Delta Shores PF Impact Fee 6,695 2,403 500 500 500
Development Services 2,211 6,406 3, 921 232 4,125
Dow ntow n Impact Fee 496 308 - - -
Dow ntow n Management District 3,899 4,034 4, 198 4,198 5,921 Ethel MacLeod Hart Trust 136 109 - - -
Externally Funded Programs 72 182 - - -
Fair Share Contributions 135 271 - - -
Fairytale Tow n 85 80 50 50 50
Gas Tax 13,676 14,990 14, 277 14,277 14,756
Golf 873 896 816 816 1,000
Greenbriar Impact Fee 1,132 1,055 - - -
I-5 Subregional Corridor Mitig 3,590 191 - - -
Innovation and Grow th 13,381 15,405 13, 468 13,468 15,289 Jacinto Creek 228 73 - - -
Land Park 149 145 23 23 23
Landscaping and Lighting 19,569 20,387 20, 770 20,770 21,344 Library Services Parcel Tax 9,200 9,537 9, 989 9,989 10,349 Major Street Construction 3,866 2,570 2, 500 2,500 2,000 Marcy Friedman ESC APP 1 1 - - -
Marina 2,124 2,207 1, 894 1,894 2,044
Measure A Maintenance 16,682 17,099 16, 490 16,490 16,190 NMA Safety, Streets, Ped, Bic 2,606 2,774 2, 429 2,429 2,379 NMA Traffic Control & Safety 1,726 1,793 1, 649 1,649 1,619 North Natomas Financing Plan 9,072 9,643 325 325 325
Operating Grants 307 468 - - -
Other 891 797 - - -
Other Capital Grants 41 - - - -
Park Development 7,972 7,336 826 826 826
Private Development 428 240 - - -
Quimby Act 165 1,264 100 100 100
Railyards Impact Fee 536 78 50 50 50
Redevelopment Bond Funds 179 251 - - -
River District Impact Fee 4,997 310 - - -
163
FY2025/26 Proposed Budget

Schedule 6 (continued)
Revenue Budget (in 000s)

FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26
Actuals Actuals Approved Amended Proposed
Other Governmental Funds (continued)
Road Maint and Rehabilitation 11,983 14,110 13,111 13,111 13,654 Sheraton MOPA Project 258 370 - - -
SHRA CDBG - - 29 29 29
So Natomas Comm Improv 16 17 - - -
So Natomas Facility Benefit 709 627 - - -
So Natomas I-5 Developer Impr 11 16 - - -
Special Districts 27,542 30,003 25,657 25,657 27,086
Special Districts - Capital 438 3,097 - - -
Special Program Donations 17 23 250 - 250
STA RT 893 818 658 658 658
Sunset, Meadow s A/D Maint 31 45 - - -
Traffic Safety 287 283 300 300 300
Transportation Development 614 69 590 833 586
Transportation Development Impact Fee 3,283 845 2,000 2,000 1,000 Tree Planting Replacement 65 225 120 120 120
Trench Cut Fee 37 25 25 25 -
Wastew ater Development Fees 1,933 1,464 - - -
Water Development Fees 4,824 3,256 - - -
Water Planning 1,359 1,628 1,525 1,525 1,701
Willow creek Fee District 147 71 - - -
Zoo 85 80 50 50 50
Other Governmental Funds $ 197,353 $ 196,968 $ 157,829 $ 155,414 $ 164,345 164
FY2025/26 Proposed Budget

Schedule 7A
Operating Grants - $169.4 million

This section provides an overview of significant grant activities that departments conduct with federal, state, and local sponsorship to advance City objectives and supplement City programs. Grant payments for non- labor items are charged directly to the gr ant fund.

Grant payments for labor are noted in the grant fund and show as a grant recovery in the General Fund or other funds to which the employees are assigned. This information is not all-inclusive and is intended as a general summary of the City’s suc cess in receiving grants. Resources for capital programs are also included in the 2025- 2030 CIP.

Significant grant amounts that will benefit FY2025/26 are summarized by department below.

CITY MANAGER - $52,562,243

FY2022/23 California Natural Resource Agency $17,396,869 Community Reinvestment Project
The 2022- 23 State Budget (A ssembly B ill [AB] 178) appropriated $20 million for Community Reinvestment programs and projects within the City of Sacramento. The State’s allocation of $9.7 million funds eight city infrastructure projects dedicated to street safety, park, and facility improvements; $8.2 million in grant awards to seventeen agencies/non-profit organizations in various community efforts throughout the city from youth job training, childhood education, environmental and sustainability projects, community center upgrades, park improvements, art, music events, and food programs; and the remaining $2.1 million will be used for grant administration and service agreements.

FY2023/24 California Natural Resource Agency $5,000,000 Community Reinvestment Project
The 2023-24 State Budget (Senate Bill [SB] 104) included $5 million in appropriations for programs and projects within the City of Sacramento. The State’s allocation of $2,425,000 funds ten city infrastructure projects dedicated to park improvements, street improvements and safety; and $2,575,000 in grant, awards twenty agencies/non- profit organizations throughout the city in various efforts from community space improvements and beautification, youth employment training, health and wellness programs, and promoting nutrition.

FY2022/23 Governor’s Office of Planning and Research $1,796,366 South Sacramento Youth Programming
The 2022- 23 State Budget (AB 178) included $2 million in appropriations for South Sacramento Youth Programming within the City of Sacramento. The State’s allocation funds two agencies/non- profit organizations within the city in various efforts from youth and family health support programs to provide a multi -use space for the South Sacramento community.

165
FY2025/26 Proposed Budget

FY2023/24 California Natural Resource Agency $1,000,000 Park and Community Improvement Projects
The 2023-24 State Budget (SB 104) included $1 million in appropriations for programs and projects within the City of Sacramento. The State’s allocation of $450,000 funds two city infrastructure projects dedicated to street safety and the activation and marketing of the SAFE Credit Union Convention & Performing Arts District; and $550,000 in grant, awards four agencies/non-profit organizations throughout the city in various efforts from enhancing neighborhood lighting and safety, providing youth leadership training and violence prevention programs, community center facilities upgrades, to creating safe spaces.

FY2024/25 United States Environmental Protection Agency (US EPA) $800,000 Marysville and Grand Multipurpose Grant
United States Environmental Protection Agency Grant funding environmental assessment to characterize and identify the source of Volatile Organic Compounds impacting two City owned properties at 3739 and 3801 Marysville Boulevard. Funding includes environmental remediation of the two City owned properties as necessary and development of a community-informed site reuse plan that identifies existing conditions, specific actions, and funding sources for addressing development constraints within the four-block area of the Marysville Boulevard and Grand Avenue intersection.

FY2024/25 Cities for Financial Empowerment (CFE) Fund, Inc. $170,000 Financial Empowerment Cities Grant
CFE Fund will conduct a thorough analysis of Sacramento's Financial Empowerment Landscape. In partnership, the city will identify potential partners, stakeholders and engage the community at large to understand common financial empowerment challenges and identify potential solutions, with particular emphasis on historically disadvantaged groups such as communities of color, immigrants, etc. Financial Empowerment data will be captured and analyzed to develop additional resources as needed and to sustain ongoing operations.

FY2022/23 State Senate Bill 170, California Natural Resources Agency $1,849,600 Planting Justice Tree Nursery
Transform the vacate tree nursery located at 1920 34th Avenue into a nationally significant center for urban agriculture, social entrepreneurship, multifaceted biodiversity, youth mentorship, and farmer training. As part of the Budget Act of 2021 (Senate Bill 170, Chapter 240).

FY2024/25 State of California Workforce Development Board $335,680 SETA California Workforce Highroad Training Partnership The grant will fund ambassadors participating in monthly and quarterly trainings on economic mobility topics and resources and will conduct outreach to connect Sacramento residents with related local opportunities around small business, workforce training/placement, and financial coaching/wellness.

166
FY2025/26 Proposed Budget

FY2024/25 U.S. Department of Housing and Urban Development $1,500,000 Grant for Sacramento River Docks
These funds will be used to pay for the design and planning of the River Docks component of the Waterfront Reinvestment Program. The City’s existing dock system requires deferred maintenance to ensure continued safe public access to the docks and waterfront. The River Docks project will provide the Sacramento community and visitors with the opportunity to experience and reconnect with the Sacramento River in a safe and engaging way.

FY2024/25 California Department of Parks and Recreation $4,600,000 Grant for Riverfront Safety and Pedestrian Access
Funding for the restoration of the Sacramento Riverfront will allow the city to further the visions, goals, and objectives of the General Plan, the 2003 Sacramento Riverfront Master Plan as approved by the cities of Sacramento and West Sacramento and the Sacramento riverfront priorities set out by the Mayor and City Council. The funding from the state will support the development of the Riverfront, allow the City of Sacramento to accelerate redevelopment of the Old Sacramento Waterfront, and will be used towards eligible projects within the Waterfront Reinvestment Program.

FY2024/25 State of California Volunteers
$2,800,506
SacYouth Corps.

This program provides funding from the United States Department of Labor through the State of California to fortify career pathways into public sector and high- growth jobs and institute a more cohesive youth workforce ecosystem that better aligns the efforts of public agencies, education systems, community -based organizations, and employers within growing local industries. Funding supports the City's efforts to develop public sector pathways including training youth to step into existing high- need positions and building out sustainable pre- apprenticeship and on- the-job training programs that support long- term COVID-19 recovery and climate change mitigation goals.

FY2024/25 U.S Small Business Administration $300,000 Sacramento Neighborhood Equity Initiative
This initiative will contribute to an inclusive economy in Sacramento, including support for women- and minority -owned entrepreneurs and small/micro businesses. Funding is dedicated to business technical assistance, case management, outreach, contracting opportunities, incubation and acceleration, and overall business support activities that contribute to commercial corridor revitalization.

FY2024/25 U.S. Department of Labor $368,105 Early Childhood Education (ECE) Apprenticeship
The ECE Apprenticeship Program will be designed to provide education and training to apprentices over a six -semester period. Apprentices will enroll in courses through the Local Education Agency (LEA) while working at Early Learning & Childcare centers throughout the city of Sacramento. Apprentices will receive on- the-job training and mentoring from experienced ECE teachers, and supportive services including tutoring and educational counseling from the LEA staff. The program is designed to meet the immediate labor force need by increasing the ECE workforce. In addition, the ECE 167
FY2025/26 Proposed Budget

apprenticeship program will build childcare center capacity and help improve program quality.

FY2024/25 The California Department of Food and Agriculture $429,648
Meadowview Community Farmers Market
The California Department of Food and Agriculture selected the City of Sacramento to provide oversight to the Meadowview Community Farmers Market. Funding be used to increase access to fresh, healthy food in low-income communities in South Sacramento.

In p artnership with community organizations, the funding will support a new Farmers Market in Meadowview that would provide an affordable, culturally relevant, and convenient source of fresh local produce to improve the health and well -being of South Sacramento residents.

FY2024/25 US Business Administration
$838,834
ECE Workforce Training Program
The federal funds will support and strengthen the city's childcare industry by increasing the number of family childcare home (FCCH) providers. The scope will specifically address the retention of current FCCH providers, recruitment and training of childcare workers and increase the number of available infant and toddler slots for families to allow Sacramentans to get back into the workforce.

FY2023/24 California Department of Housing and Community $304,544 Development’s (HCD) Pro-housi ng Incentive Pilot Program The HCD 2023 Pro-housing Incentive Pilot funding program was designed to incentivize local governments to pursue Pro-housing Designations and rewards those with the Pro- housing Designation with additional funding to accelerate affordable housing production and preservation. This funding was made available as gap financing through SHRA’s Multi-Family Lending program to support the City’s affordable housing production.

FY2022/23 Homeless Housing, Assistance and Prevention (HHAP) III $282,867 The Homeless Housing, Assistance and Prevention III funding allocation continues existing sheltering programs and expands prevention programming. Requires grantees to expend funds on evidence- based solutions that prevent, reduce and end homelessness. The remaining HHAP-3 grant balance provides Office of Innovation and Economic Development (OIED) Housing funding for administration of this funding.

FY
2023/24 Homeless Housing, Assistance and Prevention IV $1,049,254 The Homeless Housing, Assistance and Prevention IV funding allocation continues existing sheltering programs and expands prevention programming. Requires grantees to expend funds on evidence- based solutions that prevent, reduce and end homelessness. HHAP-4 funds permanent supportive housing through OIED-Housing.

FY
2024/25 Homeless Housing, Assistance and Prevention V $5,893,727 The Homeless Housing, Assistance and Prevention V funding allocation continues existing sheltering programs and expands prevention programming. Requires grantees to expend funds on evidence- based solutions that prevent, reduce and end 168
FY2025/26 Proposed Budget

homelessness. HHAP-5 funds permanent supportive housing, prevention programming, and administration through OIED-Housing.

FY2
024/25 Encampment Resolution Funding 3-R $5,846,243 The Encampment Resolution Funding (ERF) Program is a competitive grant available to ass
ist local jurisdictions in providing services and support to people experiencing homelessness in encampments that results in meaningful paths to safe and stable housing. OIED – Housing was awarded funding to pilot a direct street -to-housing rapid rehousing program for individuals experiencing unsheltered homelessness along the Northern Parkway.

CO
MMUNITY RESPONSE - $46,138,895

FY2024/25 Homeless Housing Assistance and Prevention V $20,888,982 The Homeless Housing, Assistance and Prevention V funding allocation continues support of youth sheltering, the Coordinated Access System, outreach services, and continued operations of the X Street Navigation Center, the Meadowview Navigation Center, the North Fifth Street Navigation Center, the City Motel Program, and Emergency Bridge Housing on Grove Avenue.

FY2025/26 Homeless Housing Assistance and Prevention VI $12,896,495 The Homeless Housing, Assistance and Prevention VI funding allocation continues support of youth sheltering, and continued operations of the X Street Navigation Center, the Meadowview Navigation Center, the North Fifth Street Navigation Center, and Emergency Bridge Housing on Grove Avenue.

Encampment Resolution Funding- Round 4 (ERF-4-L) $12,353,418 The Encampment Resolution Funding will be used to expand the Roseville Road Campus by 100 electrified pallet style homes, provide interim housing with a strong focus on case management and housing navigation, and focus outreach on the Sacramento Northern Parkway Trail.

CONVENTION & CULTURAL SERVICES - $571,000

State Parks Grant $200,000
The City of Sacramento Office of Arts & Culture (OAC) will seek a $200,000 grant for additional funds for Natomas Regional Park (applying March 2025) – project to be completed in calendar year 2026.

Bloomberg Foundation Grant $100,000 The City of Sacramento Office of Arts & Culture (OAC) have applied for a $100,000 grant for additional work on Creative Crosswalks in District 3 (applied Feb 2025) – project to be completed in calendar year 2026.

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FY2025/26 Proposed Budget

National Endowment for the Arts $100,000
The City of Sacramento Office of Arts & Culture (OAC) will seek a $100,000 grant to support subgranting for arts projects as a local arts agency.

California Arts Council State and Local Partners Grant $71,000 This grant is made to County designated agencies for participation in the California Arts Council’s State and Local Partner program. Sacramento Office of Arts & Culture is the County’s designated agency. This grant will support capacity building and invest ment in unincorporated Sacramento County.

FY2023/24 State Senate Bill 104 $50,000 Creative Crosswalk Project
The City of Sacramento Office of Arts & Culture (OAC) have received a $50,000 grant for Creative Crosswalks in District 3 – project to be completed in calendar year 2026.

FY2021/22 State Senate Bill 170 $50,000 Sutter’s Landing Regional Park Mural Project
The City of Sacramento Office of Arts & Culture (OAC) have received a $50,000 grant for the American River mural in Sutter’s Landing Regional Park – project to be completed in calendar year 2025.

FINANCE - $7,467,394

FY 2025 Go-Biz Cannabis Equity Grants for Local Jurisdictions $1,680,777 The Go- Biz social equity grants focus on the inclusion and support of individuals in California’s legal cannabis marketplace who are from communities that have been negatively or disproportionately impacted by cannabis criminalization. The grant funds are intended to reduce barriers for entrance into the legal cannabis industry for social equity community members. The FY25 grant cycle includes a $750,000 City match in addition to the grant award, which can include administrative labor and contracts that benefit equity members.

FY2022 Department of Cannabis Control $5,786,617 Local Jurisdiction Assistance Grant
Funding is intended to support local jurisdictions in aiding provisional license holders to meet those requirements that are necessary to attain an annual state license.

FIRE DEPARTMENT - $1,459,884

Urban Search and Rescue (US&R) $1,459,884
The National US&R system is a cooperative effort between the Department of Homeland Security (DHS), Federal Emergency Management Agency, participating state emergency management agencies, and local public safety agencies across the country. The system is b uilt around a core of sponsoring agencies prepared to deploy US&R task forces immediately and initiate US&R operations at DHS’s direction. US&R operational activities 170
FY2025/26 Proposed Budget

include locating, extricating, and providing on-site medical treatment to victims trapped in collapsed structures, victims of weapons of mass destruction events, victims of major flooding and, when assigned, performing incident command or other operational activities. California has eight of the 28 US&R Task Forces. The City of Sacramento’s Fire Department is the sponsoring agency of California Task Force 7 (CA -TF7). DHS provides financial support in the form of grants/cooperative agreements to each of the sponsoring agencies. The Department is solely responsible for the administrative management of CA-TF7. As required by the cooperative agreement, the Department will use this grant to train task force personnel, maintain a state of readiness and acquire necessary equipment and supplies. Funding is included to staff the following positions:
one Battalion Chief, one Administrative Analyst, one Administrative Technician, and two Cache Logisticians. Funding for this program varies annually and is provided on an annual basis from DHS.

INFORMATION TECHNOLOGY - $38,946,843

FY2024/25 The Sacramento Last Mile Grant $38,696,843 The Sacramento Last Mile Grant is a significant initiative aimed at enhancing broadband connectivity in underserved areas of Sacramento. The project, funded by a $38.69 million grant from the California Public Utilities Commission (CPUC), involves collaboration with Consolidated Communications Inc. (CCI) to provide fixed pricing for broadband services over several years. The grant will support the development and installation of necessary infrastructure to deliver high-speed internet to residents and businesses. The project also involves coordination with various departments, agencies, and other local entities, to ensure seamless implementation and integration with city owned existing infrastructure.

The goal is to improve digital equity and access to reliable internet services for all residents of Sacramento.

FY2024/25 Sacramento's State and Local Cybersecurity Grant Program $250,000 The City of Sacramento has been awarded a Cal OES Cybersecurity Grant for $250,000.

This funding is part of the State and Local Cybersecurity Grant Program (SLCGP) and is intended to support various cybersecurity initiatives within the city. Specifically, the grant will provide several key cybersecurity training opportunities including cybersecurity skills assessment and specialized training for IT Department Cybersecurity and Network Infrastructure staff. Additionally, the Department of Utilities will also receive specialized cybersecurity training for the city's water and wastewater operational technology utility network. These training programs are designed to enhance the city's cybersecurity posture by providing key staff with advanced monitoring and intelligence capabilities. The grant aims to validate and further mature the city's existing cybersecurity efforts, ensuring that Sacramento remains well-protected against cyber threats.

171
FY2025/26 Proposed Budget

POLICE DEPARTMENT - $15,230,962

FY2021/22 Urban Area Security Initiative $3,097,000
FY2022/23 Urban Area Security Initiative $3,097,000
FY2023/24 Urban Area Security Initiative $2,820,672
This program provides funding from the U.S Department of Homeland Security through the State of California to enhance the five mission areas of the National Preparedness Goal: Prevention, Protection, Mitigation, Response and Recovery.

FY2022/23 Citizens’ Option for Public Safety $800,102
FY2023/24 Citizens’ Option for Public Safety $805,643
FY2024/25 Citizens’ Option for Public Safety $803,649
This State-mandated program provides funding to local law enforcement jurisdictions to support law enforcement activities. Annual allocations are determined by population, based on the most recent January estimate provided by the California Department of Finance.

FY2021/22 Citizens’ Option for Public Safety – Growth $515,637 FY2022/23 Citizens’ Option for Public Safety – Growth $689,359 FY2023/24 Citizens’ Option for Public Safety – Growth $762,649 This State-mandated program provides funding to local law enforcement jurisdictions to support law enforcement activities. Annual allocations are determined by population, based on the most recent January estimate provided by the California Department of Finance.

FY2023/24 National Public Safety Partnership – Capacity Building $500,000 The Police Department is a Bureau of Justice Assistance Public Safety Partnership site (PSP) and this grant is exclusively for PSP sites to support their work to build capacity to develop and implement crime and violence reduction strategies identified thr ough the Bureau of Justice Assistance Public Safety Partnership. SPD was awarded this grant to focus on increasing the efficiency of the Digital Forensics Unit and improving crime mapping abilities for internal and external uses (i.e. public dashboards of violent crime suppression results). A portion of these funds will be awarded to the Sacramento County District Attorney’s Office to further the goals identified in its Public Safety Partnership Assessment.

FY2024/25 Gang Violence Suppression $403,660
This state-mandated program provides funding to local law enforcement jurisdictions to support a comprehensive, cohesive, strategic, and tactical plan to effectively address issues that are associated with or contribute to gang involvement and violent crim e. A portion of funds is awarded to local criminal justice partners such as the Sacramento County’s District Attorney’s Office, the Sacramento County Probation Department, the Sacramento City Unified School District as well as community-based organizations such as Brother 2 Brother and the La Familia Counseling Center.

172
FY2025/26 Proposed Budget

FY2024/25 Selective Traffic Enforcement Program $400,000 This is a federal grant program, passed through the State of California’s Office of Traffic Safety. The grant objectives are to reduce the number of traffic -related injuries and fatalities. Funded strategies include traffic safety enforcement, outreach, and engagement activities to reduce motorist, bicyclist, and pedestrian injuries and fatalities attributable to driving under the influence (DUI) and unsafe driving (e.g., speed, texting, etc.).

FY2022/23 Edward Byrne Memorial Justice Assistance Program $278,035 FY2023/24 Edward Byrne Memorial Justice Assistance Program $257,556 This federal program provides annual funding to state and local governments to support a broad range of activities to prevent and control crime and to improve the criminal justice system. This grant will support future costs for ShotSpotter technology in t he south Sacramento area.

UTILITIES DEPARTMENT - $4,647,544

Green Means Go Funding Program: DOU City Projects (Basin 111 $797,000 Drainage Study, Storm Basin 151, 153 and 158 Strom Drainage Master Plan Grant Projects)
The Green Means Go funding program aims to catalyze infill development that improves housing affordability through non- transportation infrastructure and planning activities in locally adopted Green Zones. The funds are being used to pay for infrastructure improvements and studies, such as drainage facilities, water line extensions, sewer basin capacity analyses, and drainage studies aimed at removing impediments to residential development. The Green Means Go funding program is the newest funding program from the Sacramento Area Council of Governments (SACOG).

Building Resilient Infrastructure and Communities Program Grant: $3,200,544 BRIC (Beach Lake N. Levee Project)
This project, funded by the Federal Emergency Management Agency (FEMA) and working in conjunction with the Sacramento Flood Control Agency (SAFCA), will mitigate flooding of 5 interchanges and 3.9 miles of Interstate 5 (I -5), a runway at Sacramento Executive Airport, surface streets, drainage pumps, water and sewer facilities, and 27,000 housing units in South Sacramento. Flood protection will increase from events more frequent than the 100-year event to at least the 200-year event. This will be accomplished by improving approximately 4 miles of the north Morrison Creek and Beach Lake levee, including raising or installing sections of floodwall, building a 750 -linear-foot seepage berm, relocating a pump station, installing turf -reinforcement geotextile fabric along the waterside of the levee, and incorporating a riparian woodland barrier to protect against wave erosion and provide resiliency.

173
FY2025/26 Proposed Budget

Department of the Interior, Bureau of Reclamation WaterSMART $650,000 Aquatic Ecosystem Restoration Grant (Lower American River Programmatic Study and Design of Juvenile Salmonid Rearing Habitat Restoration Sites Project)
This project, funded by the Department of Interior, Bureau of Reclamation (USBR), will support Water Forum’s objective to preserve and protect the fishery, wildlife, aesthetic and recreational resources of the Lower American River. The goal of activities funded under this agreement would be to leverage previous salmon habitat construction planning and design, and ongoing fisheries and physical habitat conditions monitoring data to inform future design of habitat projects. This project would support advancing a portion of Water Forum’s previously identified conceptual rearing habitat sites to a “shovel ready” condition, utilizing a proven approach to planning and design that has previously been employed for other Water Forum habitat program work. The project would include a collaborative stakeholder process, background/baseline resource surveys, and a robust alternatives analysis and design process to develop 60% level of design for approximately 30 acres of vitally needed salmonid rearing habitat in the Lower American River.

YOUTH, PARKS, & COMMUNITY ENRICHMENT - $ 2,404,680

START (Students Today Achieving Results for Tomorrow) $753,792 START has funding of $753,792 from the California Department of Education (DOE) After School Education and Safety (ASES) grant for this after -school literacy and enrichment program that serves over 415 elementary school children daily in the Robla Unified School District.

Workforce Innovation and Opportunity Act (WIOA)/Youth $222,263 Program Development
The Sacramento Employment and Training Agency provides funding to support 60 in school youth (ages 16- 21 years old) each year. Activities are individualized and may include paid work experience, tutoring, leadership development opportunities, adult mentoring, comprehensive guidance and counseling, and a minimum of one year of follow-up services.

Expanded Learning Opportunities Program (ELO-P) $1,428,625 The City receives DOE Expanded Learning Opportunities Program (ELO-P) funding from Robla School District to support the expansion of the City’s existing ASES program by allowing the number of students serviced to be increased as well as additional grade levels (TK and Kindergarten students) to be serviced. The school district is the grantee, and they contract with the City for delivery of the program.

174
FY2025/26 Proposed Budget

Schedule 7B
City Grant Awards

This section provides an overview of grants awarded by the City of Sacramento, to non- profits, businesses, community-based organizations, or other entities to support essential City programs. The information provided is a general summary of the grants awarded during calendar year 202 4 and includes the program’s name, grantee, grant amounts, and funding source.

Department
Grant Program Name Grantee Amount Awarded
City Manager
Al Fresco Dining Grant Program Various Awardees (approximately 25) 2,000,000 ARPA North Area Façade Pilot Various Awardees (maximum potential 20) 1,000,000 ARPA Northgate Boulevard Storefront Improvement Grant Program Various Awardees 200,000 ARPA Reinvestment Fund Grant Small Business Support Capital Station dba The River District 186,420 Downtown Sacramento Partnership 1,150,000
Midtown Association 635,000
ARPA Small Business Assistance Center - PBID Support Various Awardees 1,185,000 ARPA Transformative Reinvestment Grant Program Various Awardees (maximum potential 20) 2,570,000 American Rescue Plan Fund Total 8,926,420$
Economic Gardening Various Organizations (maximum potential 10) 500,000 Sacramento Innovation Grant Various Organizations (maximum potential 6) 395,566 Innovation and Growth Total 895,566$
Brownfields Revolving Loan Fund Grant Sacramento Housing & Redevelopment Agency 750,000 Community Reinvestment Project 3 Point 0 – Studio T Arts & Entertainment 750,000 Alchemist Community DevelopmentCorporation 300,000
Atrium 916 50,000
California State University Sacramento 2,200,000
Celebration Arts Theater 714,068
City of West Sacramento 340,000
College Glen Little League 65,000
Community Against Sexual Harm 50,000
Downtown Sacramento Partnership 320,000
Food Literacy Center 847,500
Greater Sacramento Urban League 300,000
Green Technical Education and Employment 250,000
Hagginwood Community Association 23,850
Impact Foundry 100,000
Improve Your Tomorrow 250,000
Juma Ventures 100,000
Lavender Library Archives & Cultural Exchange of Sacramento 100,000 Margolin Ranch 60,000
Midtown Association 50,000
Natomas Chamber of Commerce 100,000
One Community Health Vision 250,000
Our Daughters Destiny 140,000
Power Inn Alliance 25,000
Sacramento Area Bicycle Advocates 300,000
Sacramento Hispanic Chamber of Commerce Foundation 100,000 Sacramento Tree Foundation 750,000
Sacramento Urban Debate League 370,000
Shifa Community Clinic 100,000
Studios for the Performing Arts Operating Company 1,000,000 The Creation District - Waking The Village 400,000
The Sofia, Home of B Street Theatre 125,000
Transformative Programming Works 50,000
Transitions Buprenorphine Clinic of Sacramento 50,000
UniverSOUL Café 75,000
WeForce of California Incorporated 100,000
Early Childhood Education (ECE) Apprenticeship TBD 394,000 Early Childhood Education (ECE) Workforce Training Program TBD 850,000 Financial Empowerment Cities Grant TBD 170,000
Homeless Housing Assistance Prevention (HHAP) 4 TBD 1,049,254 Homeless Housing Assistance Prevention (HHAP) 5 TBD 4,000,000 Marysville and Grand Multipurpose Grant TBD 800,000
Park and Community Improvement Projects Mack Road Partnership 150,000 Midtown Association 200,000
Sacramento Hispanic Chamber of Commerce 100,000
Sacramento Housing & Redevelopment Agency 100,000
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FY2025/26 Proposed Budget

Department
Grant Program Name Grantee Amount Awarded
City Manager (cont)
Prohousing Incentive Pilot (PIP) Program Sacramento Housing & Redevelopment Agency 304,544 Sacramento Employment and Training Agency, A Highroad Training Partnership Various Awardees (maximum potential 18) 400,000 Sacramento Neighborhood Equity Initiative Cali fornia Capital Small Business Financial Development Center 300,000 SacYouth Corps. TBD 2,874,428
South Sacramento Youth and Family Programs and
the Filipino Community Center Health Education Council 1,200,000 The Filipino Community of Sacramento and Vicinity 800,000 St
reet Soccer USA Sacramento Street Soccer USA 800,000
Operating Grant Total 26,047,644$
Tree Nursery Grant Project Delivery Agreement Planting Justice Tree Nursery 2,000,000 Other Capital Grants Total 2,000,000$
City Manager Total 37,869,630$
Communtiy Response
ARPA Outreach Services Capitol Station dba the River District 125,000 ARPA Shelter First Step Communities 3,094,236
American Rescue Plan Fund Total 3,219,236$
CA Rural Legal Assistance CA Rural Legal Assistance 500,000 General Fund Total 500,000$
Coordinated Access System Sacramento Steps Forward 1,000,000 Women and Family Shelter Project Saint John's Program for Real Change 1,182,814 WEAVE 574,565
Measure U Total 2,757,379$
ERF-4-L Community Response Grant Project TLCS Inc., dba Hope Cooperative 467,783 HHAP 1 Homeless Grant Program Sacramento Housing Redevelopment Authority (SHRA) 60,986 HHAP 4 Funding Meadowview Nav Center Sacramento Housing Redevelopment Authority (SHRA) 1,995,738 HHAP-3 Motel Shelter Arden Acres 281,690
Motel 6 Central 525,822
Paul & Sons 525,822
Siyaram Hotels, LLC 300,469
HHAP-3 Youth Shelter Waking the Village 832,310
HHAP-4 Motel Shelter Arden Acres 514,310
Motel 6 Central 861,978
Paul & Sons 861,978
Siyaram Hotels, LLC 432,531
HHAP-4 Motel Shelter Services Step Up on Second Street 437,264 HHAP-4 Shelter The Gathering Inn 1,543,593
HHAP-4 Youth Shelter Sacramento LGBT Community Center 1,674,001 Waking the Village 534,250
Wind Youth Services 1,233,309
HHAP-5 Street Outreach Step Up on Second Street 500,000 Operating Grant Total 13,583,834$
Community Response Total 20,060,449$
Convention and Cultural Services
Arts Journalism Grant Program Local Media Association as fiscal sponsor for Solving Sacramento 250,000 Creative Venues Grant Amatoria Fine Art Books 10,000
Ambrose Ventures, LLC dba Lucid Winery 20,000
Axis Gallery 10,000
Barry Sakata dba b. sakata garo 10,000
Bo-Ku Partners LLC dba The Rink Studios 25,000
Café Colonial Entertainment, LLC 25,000
CASA de ESPANOL LLC 10,000
Goldfield Trading Post, LLC 25,000
JimBoCo Presents dba Harlow's 25,000
Limelight Bar and Café LLC 25,000
Matchbox K LLC dba Malt & Mash 25,000
Modrow Bazett, Inc. dba The Golden Bear 25,000
Money Is Funny Inc. dba Laughs Unlimited Comedy Club and Lounge 25,000 Sacramento Torch Club, Inc. 25,000
Stoney's Rockin' Rodeo 25,000
There & Back Again LLC dba Capital Books 10,000
We Are Sacramento, LLC dba The Gallery by We Are Sacramento 10,000 American Rescue Plan Fund Total 580,000$
Cultural Arts Awards (CAA) ARTners 5,317
Balance Dance Project 5,672
Brazilian Center for Cultural Exchange of Sacramento 6,166 Calidanza Dance Company 16,482
California Lawyers for the Arts 19,031
Camellia Symphony Association 5,000
Casa de Brazilian Folkloric Arts 14,867
Chalk It Up to Sacramento 16,267
Department of Sound 17,718
Folsom Symphony, Inc 7,330
Girls Rock Sacramento 15,156
Hmong Youth and Parents United 17,083
Iu Mien Community Services 6,040
Loa'a Foundation 17,415
Los Rios Community College District AKA Sacramento Shakespeare F 5,000 Natomas Arts and Education Foundation 6,941
176
FY2025/26 Proposed Budget

Department
Grant Program Name Grantee Amount Awarded
Convention and Cultural Services (cont)
Rincones de mi Tierra Grupo Folklorico 15,377
Sacramento Choral Society and Orchestra 5,000
Sacramento Comedy Spot 18,325
Sacramento Fine Arts Center 5,000
Sacramento French Cultural Society DBA Sacramento French Film Fes 6,141 Sacramento LGBT Community Center 25,870
Sacr
amento Master Singers 6,261
Sacramento Men's Chorus 6,834
Sacramento Performing Arts Conservatory 6,095
Sacramento Regional Assoc of Malayalees 5,000
Sacramento Valley Chapter of Sweet Adelines International 7,481 Sacramento Youth Symphony 19,013
Sisters of NIA, Incorporated 5,936
Strauss Festival of Elk Grove, Inc. 5,000
The Library of MusicLandria 16,338
The Regents of the University of California 29,088
University Enterprises, Inc DBA Sacramento State Sponsored Researc 5,000 Voices of California, CA Delta Chapter of BHS 5,000
Well
spring Women's Center 16,601
Community Center Fund Total 390,845$
Sacramento Film + Media Grant 4th Wall Filmworks, LLC 10,000 Access Sacramento 10,000
Blue Gonella Manley 10,000
Bright Coast Productions 10,000
Ceciia Cathy Romo dba Algo Bueno Production 10,000
Continental Drift Productions, Inc 10,000
Digital Curanderas 5,000
Kathy E Kasic dba Metamorph Films, LLC 5,000
Samuel Napoleon Jones 10,000
Innovation and Growth Total 80,000$
Cultural Arts Awards (CAA) 916 Ink 20,480
Atrium 916 18,113
B St Theater for Children 34,162
Big Idea Theatre 5,989
Broad Room Creative Collective 6,040
Broadway Sacramento 21,717
Capital Public Radio 21,717
Capital Stage Company 21,274
Celebration Arts 6,541
Crocker Art Museum Association 34,162
DDSO 8,302
Empire Arts Collective 5,582
Fairytale Town 8,302
KVIE 17,711
Latino Center of Art and Culture 28,256
Mandarins of Sacramento, Inc 32,771
National Academy Youth Corp (Sojourner Truth) 19,003
Nu Art Education, Inc DBA NorCal School of the Arts 17,562 Rincones de mi Tierra Grupo Folklorico 15,377
Sacramento Ballet 21,717
Sacramento Children's Museum 19,478
Sacramento Theatre Company 8,302
Sol Collective (Freedom Bound Center, Inc) 32,758
Studio T Urban Dance Academy (3 Point 0) 18,948
Studios for the Peforming Arts (CLARA) 30,439
Verge Center for the Arts 20,203
Viewpoint Photographic Art Center 5,000
Women's Wisdom Art 15,453
Measure U Total 515,360$
Arts & Cultural Nonprofits Recovery Program Round 3 Arabic Language Education for Everyone 13,716 Chautauqua Playhouse 14,844
Country Dance & Song Society Inc. 11,657
Elk Grove Musical Theatre Company 12,516
Grant Drum Line Music Association 15,864
Hot Jazz Jubilee, Inc. 13,479
Instututio Mazatlan Bellas Artes de Sacramento 16,276
Jan Ken Po Gakko 11,626
Sacramento Baroque Soloists 11,687
Sacramento Zoological Society 37,932
SMUD Museum of Science and Curiosity 35,610
Symphony d'Oro Rancho Cordova 11,257
Theatre Production and Technical Academy, Inc 19,722
Village Stage Production, Inc. 10,235
Washington Neighborhood Center 13,579
CA Creative Corps Program Grant 3 Point 0 Studio T 300,000 916 Ink 117,000
American River Conservancy 117,000
Arts Benicia 117,000
Broad Room Creative Collective 117,000
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FY2025/26 Proposed Budget

Department
Grant Program Name Grantee Amount Awarded
Convention and Cultural Services (cont)
Capital Storytelling 117,000
Center for Land Based Learning 300,000
City of Davis 300,000
Developmental Disabilities Service Organization 117,000 Freedom Bound Centeer dba Sol Collective 117,000
Freedom Bound Center as fiscal sponsor for Community Responsive C 117,000 Freedom Bound Center as fiscal sponsor Hidden Temple Media 117,000 Friends of Sactamento Arts as fiscal sponsor for Hangtown Collective 117,000 Girls Rock Sacramento 117,000
Latino Center of Art and Culture 117,000
National Academic Youth Corp. as fiscal sponsor for Sugar Skull Art Wa 117,000 National Academic Youth Corps 117,000
Nu Art dba Nor Cal School of the Arts 300,000
Shingle Springs Band of Miwok Indians 117,000
SSCCC/Y MO Collective 117,000
Vallejo Community Arts Foundation 117,000
Wellspring Women's Center 117,000
Yxplosion as fiscal sponsor for See the Elephant 117,000 Operating Grant Total 3,673,000$
Convention and Cultural Services Total 5,239,204$
Police
Evidence-Based Community Violence Interruption, Disruption, and Suppression (EBCVIDS) All N Together 100,000
Brother to Brother Mentoring Inc 225,000
Self Awareness and Recovery 225,000
General Fund Total 550,000$
Evidence-Based Community Violence Interruption, Disruption, and Suppression (EBCVIDS) H.O.P.E. Helping Our People Eat 225,000 Gang Prevention & Intervention Task Force (GPIT) Academics 4 Athletes, Inc 225,000 Brother to Brother Mentoring Inc 225,000
Impact Sac 225,000
Reimagine Mack Road Foundation 100,000
Rose Family Creative Empowerment Center 75,000
Sacramento Youth Center 150,000
The Hawk Institute 225,000
Victory Outreach - South Sacramento 125,000
Measure U Total 1,575,000$
Gang Violence Suppression Brother 2 Brother 10,000
County of Sacramento 20,000
County of Sacramento District Attorney's Office 70,000
La Familia Counceling Center, Inc 10,000
Sacramento City Unified School District 75,000
National Public Safety Partnership - Capacity Building Grant Sacramento County 50,000 Urban Area Security Initiative (UASI) City of Elk Grove 154,850 City of Rocklin 89,080
City of West Sacramento 82,000
El Dorado County 38,000
Placer County 45,200
Sacramento County 1,665,875
Operating Grant Total 2,310,005$
Police Total 4,435,005$
Youth, Parks & Community Enrichment
Ann Land & Bertha Henschel Memorial Fund Grant Asian Community Center DBA ACC Senior Services 10,000 Center for Employment Opportunities 10,000
EGE Foundation 2,000
First Step Housing dba First Step Communities 10,000
Joshs Heart 3,500
Love is the Answer Mission Ministries 2,000
Meals on Wheels by ACC 9,000
Next Move Sacramento Homeless Services 10,000
Reimagine Mack Road Foundation 10,000
Repairing the Breach Neighborhood Project 9,500
Sacramento LGBT Community Center 10,000
Sacramento Regional Family Justice Center 10,000
Saint John's Program for Real Change 10,000
Sierra Service Project 5,000
South Sacramento Interfaith Partnership 10,000
WEAVE 10,000
WEAVE Inc. 10,000
Wellspring Women's Center 10,000
Wind Youth Services, Inc. 10,000
Women's Civic Improvement Club 10,000
YMCA of Superior California 1,200
Ann Land/Bertha Henschel Fund Total 172,200$
Community Reinvestment (SB 170) Alchemist CDC OBO Community Connections 95820 Project 50,000 Gender Health Center 250,000
Grant Drum Line Music Association Program 75,000
NeighborWorks Sacramento 250,000
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Department
Grant Program Name Grantee Amount Awarded
Youth, Parks & Community Enrichment (cont)
Our Daughter’s Destiny 70,000
Pesticide Action Network North America OBO International Garden of Many Colors 50,000
Sacramento City College 1,000,000
Sacramento Girls on the Run 100,000
Sacramento Hispanic Chamber of Commerce 150,000
SC
USD - Hiram Johnson High School 1,000,000
Sojourner Truth Museum 125,000
Studio T Arts Urban Dance Academy 500,000
UC Davis Childcare Center 4,380,000
Yes2Kollege Educational Resources Inc 150,000
Yisrael Family Farms 50,000
Lower American River Parkway Public Access Improvements (SB 170) Sacramento County 3,500,000 Sacramento Regional Conservation Corps 100,000
Sacramento Valley Conservancy 3,000,000
SB 170 - Community Reinvestment Fund Total 14,800,000$
Youth, Parks & Community Enrichment Total 14,972,200$
Grand Total 82,576,488$
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FY2025/26 Proposed Budget

Schedule 8
Reclassification Requests (in Full-Time Equivalents)
all requests are subject to Human Resources approval

The City is currently undergoing a citywide classification and compensation study as approved by Council. Until this is completed individual reclassification requests are not being considered. The following summarizes the next steps in this study.

• Citywide Classification and Compensation Study
The Human Resources Department is authorized to work with the Finance Department and all represented unions to review existing job classifications and compensation structures for positions in the City to ensure they are internally equitable and externally competitive.

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Schedule 9
Multi-year Operating Projects (MYOPs)
This section provides an overview of FY2025/26 appropriations to existing and new MYOPs. Appropriations will be transferred to the respective project July 1, 202 5. The information is a general summary of MYOPs in each department by fund, project number, project name, budget as of March 2025, balance as of March 2025, and FY2025/26 funding amount.

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Schedule 10
Five-Year Projected Net Debt Service by Fund (in 000s)

This section provides the five -year projected Net Debt Service by fund, which is Debt Service expenses less revenues and offsets.

Fund Type FY2025/26 FY2026/27 FY2027/28 FY2028/29 FY2029/30 Governmental Funds
General Fund $ 16,567 $ 16,631 $ 16,858 $ 16,902 $ 16,903 Subtotal Governmental Funds 16,567 16,631 16,858 16,902 16,903 E nterprise Funds
Community Center 20,318 20,320 20,320 20,320 20,317
Parking 9,577 9,680 8,783 8,479 8,280
Solid Waste 1,667 1,667 1,668 1,660 1,659
Storm Drainage 232 233 233 235 235
Wastew ater 3,913 3,911 3,909 3,908 3,911
Water 35,723 35,710 35,702 36,259 35,732
Subtotal E nterprise Funds 71,431 71,520 70,616 70,861 70,133 Internal Service Funds
Fleet Management 45 45 45 47 48
Worker's Compensation Fund (48) (42) (36) (30) (25)
Subtotal Internal Service Funds (3) 3 9 17 23
Other Governmental Funds
2006 CIRBs, Series B (CRCIP) 312 241 - - -
2015 Golden 1 Center Revenue Bonds 205 (159) 465 480 390 Golf 435 435 435 434 434
Marina 1,257 1,257 1,257 1,282 1,282
NNFP Public Facilities Fee 577 579 582 603 606
NNFP Reg Park Land Acquisition 831 834 838 869 872
Sacramento TID 2,742 2,739 2,743 2,740 2,744
Subtotal Other Governmental Funds 6,359 5,926 6,321 6,409 6,328 Total $ 94,353 $ 94,080 $ 93,804 $ 94,189 $ 93,386 184
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8 SECTION - 8
Mayor and City Council

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Mayor and City Council
The Mayor and City Council, consisting of the Mayor and eight Councilmembers, are the policy-making body for the City of Sacramento. The goal of the Council is to govern the City in a manner that is both responsive to the needs and concerns of City residents and financially sound.

The Mayor and City Council (Council) pass City ordinances, provide administrative direction and authority by resolution, approve new programs, and approve the annual budget. The Council acts as Sacramento’s Financing Authority, Housing Authority, Public Financing Authority, and Redevelopment Agency Successor Agency. They also appoint the City’s Charter Officers (City Attorney, City Auditor, City Clerk, City Manager, and City Treasurer) and the Director of the Office of Public Safety Accountability.

• Mayor and City Council: The governing body of the City. The Mayor is elected by all city voters and Councilmembers are
elected by voters in each specific Council District.

The Mayor appoints Councilmembers to serve on
various regional boards, commissions, and joint
powers authorities.

• Office of Public Safety
Accountability:

Provides an independent review of complaints
involving police and fire employees as a means
of
ensuring transparency and accountability
and fostering relationships between the City’s
public safety departments and the community.

PROGRAMS/SERVICE HIGHLIGHTS

• Provide work experience opportunities in the Mayor’s and City Council Offices to high school and college youth through the City’s volunteer internship program, Thousand Strong program, and various university and fellowship programs. A new addition to the various unpaid intern programs utilized, the Mayor and City Council offices started participating in the Youth Services Corps (previously known as the Californians for All) intern program aimed at providing paid work experience to City residents between the ages of 16- 30, the funds are provided through a grant secured by the Office of Economic Development.
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• Sponsor and/or organize community events such as movie nights, musical entertainment, holiday celebrations, cultural celebrations, community resources, and farmer’s markets to enhance the community’s experience of living in the City. • Financially support community organizations that provide services to City residents in the areas of racial equity, health and wellness, homelessness, teen learning, arts and culture, and youth sports.
• Hold ongoing community meetings throughout the City to share information and gather ideas that support and connect residents to one another and local government.
• Through the ceremonial resolution process, recognize community -oriented civic celebrations, causes, issues, companies, organizations, and individual residents that have achieved notable milestones or made contributions to the city and/or community. Also, honor and recognize the passing of residents. • Issue Keys to the City via the Mayor’s Office for residents reaching the 100- year milestone birthday or who have demonstrated remarkable service to the City throughout their life.

DEPARTMENT EFFICIENCIES

• Utilizing the 311 system and integrated constituent management system to support constituents in tracking neighborhood complaints and requests for service. • The Office of Public Safety Accountability has on-boarded seven new employees filling the newly added budgeted positions from last fiscal year. The increased staffing has allowed the office to further their mission to enhance relationships between the City's public safety employees and the community they protect and serve.

OBJECTIVES FOR FY2025/26

• Continue evaluating and incorporating new and existing information technology tools to achieve sustainable services, increase transparency, and strengthen community engagement.
• Continue using websites and social media to share information and to communicate in a timely fashion with the community on issues of interest and impact. • Continue providing work experience opportunities (internships) to college and high school students focused on building meaningful skill sets that will aid the student in obtaining full-time employment.
• Continue using electronic communications whenever possible to limit the use of printed materials. Printed materials will be made available to constituent communities, as necessary.

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BUDGET AND POSITION CHANGES

Department Budget Summary

Division Budget Summary

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Office of Public Safety
Accountability
Delete three positions (2.0 FTE - Office of Public Safety Accountability (OPSA) Investigator and 1.0 FTE - OPSA
Analyst) and add three positions (2.0 FTE - OPSA Senior Investigator and 1.0 FTE - OPSA Community Engagement
Coordinator) to fix OPSA positions to the correct
classification as approved by City Council on September 12, 2023 (Resolution No. 2023-0293).

Measure U - - -
Office of the Mayor Delete one position (1.0 FTE - Staff Aide) and add one position (1.0 FTE - Senior Council Representative) as the Staff Aide classification is no longer active.

General Fund - - -
Total Change - - -
Change
Mayor/Council FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 7,049,644 $ 7,477,235 $ 8,359,770 $ 8,359,770 $ 8,249,922 $ (109,848) Other Services and Supplies 1,034,458 949,211 1,020,859 2,865,432 1,284,155 (1,581,277) City Property 21,678 32,914 2,000 2,000 2,000 -
Multi-Year Operating Projects - - 4,950 4,950 4,950 -
Transfers (87,099) 1,416 - - - -
Labor and Supply Offset (118,020) (195,408) (121,114) (121,114) - 121,114 Total $ 7,900,660 $ 8,265,368 $ 9,266,465 $ 11,111,038 $ 9,541,027 $ (1,570,011) Change
FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $ 5,537,918 $ 5,689,949 $ 5,945,473 $ 7,790,046 $ 5,906,103 $ (1,883,943) Interdepartmental Service 1,503,943 1,477,587 1,440,510 1,440,510 1,605,029 164,519 Measure U 858,799 1,097,832 1,880,482 1,880,482 2,029,895 149,413 Total $ 7,900,660 $ 8,265,368 $ 9,266,465 $ 11,111,038 $ 9,541,027 $ (1,570,011) *The Amended FY2024/25 Budget includes carryover of unspent FY2023/24 Budget and/or transfers to capital projects. *The Amended FY2024/25 Budget includes carryover of unspent FY2023/24 Budget and/or transfers to capital projects.

Change
Mayor/Council FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Office of the Mayor $ 1,878,192 $ 2,061,182 $ 853,992 $ 2,160,477 $ 2,066,913 $ (93,564) Mayor Council Operations Division - - 1,880,885 - - -
City Council District 1 772,159 673,986 672,449 812,581 680,528 (132,053) City Council District 2 510,497 535,830 308,206 1,158,702 680,528 (478,175) City Council District 3 621,023 566,506 672,449 941,091 680,528 (260,565) City Council District 4 668,808 761,188 308,206 699,693 680,528 (19,164) City Council District 5 667,848 571,717 672,449 873,449 680,528 (192,922) City Council District 6 681,298 662,576 672,449 832,414 680,528 (151,886) City Council District 7 616,630 657,284 672,449 931,319 680,528 (250,790) City Council District 8 625,407 677,267 672,449 820,830 680,528 (140,303) Office of Public Safety Accountability Division 858,799 1,097,832 1,880,482 1,880,482 2,029,895 149,413 Total $ 7,900,660 $ 8,265,368 $ 9,266,465 $ 11,111,038 $ 9,541,027 $ (1,570,011) 189
FY2025/26 Proposed Budget

Staffing Levels

MEASURE U
The following chart summarizes the Office’s Measure U programs.

Change
Mayor/Council FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Office of the Mayor 15.00 15.00 15.00 12.00 12.00 -
City Council District 1 2.50 2.50 2.50 2.50 2.50 -
City Council District 2 2.50 2.50 2.50 2.50 2.50 -
City Council District 3 2.50 2.50 2.50 2.50 2.50 -
City Council District 4 2.50 2.50 2.50 2.50 2.50 -
City Council District 5 2.50 2.50 2.50 2.50 2.50 -
City Council District 6 2.50 2.50 2.50 2.50 2.50 -
City Council District 7 2.50 2.50 2.50 2.50 2.50 -
City Council District 8 2.50 2.50 2.50 2.50 2.50 -
Office of Public Safety Accountability 5.00 11.00 11.00 11.00 11.00 - Total 40.00 46.00 46.00 43.00 43.00 -
Funding Category Program Name FTE
FY2025/26
Proposed
Community Response
MYOP Commission Stipends - 4,950
Operations Office of Public Safety Accountability 11.00 2,024,946 Grand Total 11.00 2,029,896$
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FY2025/26 Proposed Budget

9 SECTION - 9
City Attorney

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City Attorney
The mission of the Sacramento City Attorney’s Office is to provide the highest quality legal services to the City of Sacramento.

The Office of the City Attorney serves as legal counsel to the City Council, City Officers and Department staff, boards, and commissions as well as the Administration, Investment and Fiscal Management Board, Sacramento City Financing Authority, and Sacramento Regional Arts Facilities Financing Authority. The Office provides legal representation in criminal, civil and administrative litigation, renders advice and counsel, and prepares ordinances, resolutions, contracts, opinions, and other legal documents for the City and its related entities. The City Attorney’s Office is organized into four operational divisions and an administration division.

• Administration:

Develops and implements office policies and
procedures; monitors overall office performance;
prepares and administers the office budget; develops
and implements education and training; handles all
personnel hiring, evaluation, and other personnel
matters; assembles and analyzes office productivity
data, including the production of an annual report; and engages in long-range planning.
• General Counsel &
Advisory Division:

Provides advisory and transactional advice and
support to charter offices and city departments on all
aspects of municipal law including Brown Act; Public
Records Act; C alifornia Environmental Q uality Act
and National Environmental P olicy Act
; water law;
propositions 26 and 218; public bidding, construction,
and procurement; contract negotiation, drafting, and
review; prevailing wages; transportation modes; real
estate procurement, conveyance, and leasing; solid
waste disposal; landfill regulation; and various other
areas of municipal law.
• Litigation Division:

Defends and prosecutes civil litigation cases on
behalf of the City and its officers and employees
acting in the course and scope of employment; and
provides legal support to Risk Management.

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PROGRAMS/SERVICE HIGHLIGHTS

General Counsel & Advisory
• W orked with Procurement staff to update and consolidate the City’s contracting rules to ease implementation while also maintaining transparency and fairness in the City’s contracting process. This project involved updates to the city code, procurement policies, and the city’s contract templates for the purchase of goods, non-professional services, professional services, and public projects • A ssisted staff and the Sacramento Children’s Fund Planning and Oversight Commission with the development and approval of the City’s first Strategic Investment Plan, consistent with Measure L.
• Advised Department of Utilities ( DOU) staff on updated development fees for water, separated sewer, combined sewer, and a new storm drainage fee. Drafted an authorizing ordinance for the storm drainage fee. Reviewed nexus studies and compliance with authorizing statutes and advised staff on the fee adoption process and requested exemptions. Despite significant developer opposition, litigation threats, and headwinds presented by state housing laws, DOU successfully obtained the requested fee levels.
• Successfully defended several lawsuits, including a challenge to an 800- residential-unit project on Bercut Drive and a preliminary lawsuit challenging the Airport South Industrial project.
• Assisted in the drafting of the City’s missing middle housing interim ordinance. By adopting this ordinance, the City became the first jurisdiction in the state to allow multi-unit housing in every neighborhood.

• Community
Advocacy & Public
Safety Division
(CAPS):

• Strategic Projects
& Research
Division (SPR):

Works collaboratively with City departments on code
enforcement, social nuisance abatement, public safety
issues, including prosecuting code violations through
administrative, civil, or criminal proceedings, and social nuisances through civil litigation an
d training, and
advising staff on enforcement matters. Advises the
Sacramento Police Department , Community
Development Department, Fire Department, and
Department of Community Response Enforcement
Divisions.

Provides strategic support to the City Council’s
policymaking function by providing legal advice and
response on multi-departmental projects and Council
initiatives, including issues of homelessness,
economic development, cannabis regulations, and
emergency management.

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Litigation
• Case No. 1: The City initiated litigation against A. Teichert and Sons, Inc. for non- compliant and deficient work on the Accelerated Water Meter Program concerning 1 inch water meter retrofit work and water main installations. The parties reached a settlement agreement allowing the Department of Utilities to collect $13.4 million.

• Case No. 2: This inverse condemnation matter involves a property owner who filed litigation against the City claiming that the West Broadway Specific Plan adopted by the City in 2020 requires him to complete a roadway dedication for a portion of his property and caused him to reduce the price of his property in a sale to a housing developer to account for the loss of 25% of the building area. We filed a motion to dismiss for lack of subject matter jurisdiction as plaintiff’s developmental application is still pending. The Court granted the motion to dismiss, and plaintiff dismissed the lawsuit.

• Case No. 3: Plaintiff alleged an equal rights violation and law enforcement interference when his access to public baseball fields were infringed. The City successfully moved to have Plaintiff deemed a vexatious litigant in the US District Court Eastern District of California, and his case was dismissed.

• Case No. 4: This matter involved a fatal officer involved shooting in a parking garage where the decedent refused to put down a firearm and was brandishing it at officers. The City filed a demurrer to the Complaint on standing issues and the case was dismissed.

• Case No. 5: This matter involved a commercial cannabis business alleging the City was improperly denying their building permits. The City negotiated a dismissal of the case by coordinating with staff to facilitate resolution of the outstanding building permit disputes.

Community Advocacy & Public Safety
• Advised the City’s public safety department regarding Community Assistance, Recovery, and Empowerment (CARE) Court and Senate Bill 43 to expand access to mental health court, including submitting petitions to the Sacramento Superior Court for individuals in our community suffering from severe and untreated mental illness and other co-occurring disorders.
• Led the Justice for N eighbors (JFN) team to abate social and physical nuisance properties throughout the City, collecting administrative and civil penalties to support the JFN Fund, which in turn, provides support to abatement efforts through staff training, equipment and assistance with home repairs through the Emergency Home Repair Project.
• The Community Advocacy and Public Safety Division (CAPS) prosecution team not only assisted our enforcement officers ’ efforts to hold individuals accountable 195
FY2025/26 Proposed Budget

for complying with the law, but they also worked with violators and their attorneys in the courtroom to improve their quality of life by helping to locate and provide services and shelter for interested individuals.
• Provide legal representation to the police’s Internal Affairs (IA) Unit regarding officers’ personnel files, advising the department in its role as a custodian of records, and provided successful representation both at the Superior Court and Court of Appeals. Additionally, CAPS provided a training session for all IA staff and prepared a legal manual for the division as a continuing legal resource. • Assisted the Police Department with prosecuting Gun Violence Restraining Orders, taking weapons off the street and from individuals who propose a threat to either themselves or the public at large.

Strategic Projects & Research
• Affordable Housing. Assisted the Office of Innovation and Economic Development in establishing the City’s new street -to-housing program, which utilized $5 million in State funding to house 100 homeless households currently residing along the Sacramento Northern Parkway in Council District 2.

• Greenbriar Community Facilities District Special Tax Bonds. Advised the City Treasurer on the $36 million bond issuance to finance the costs of acquisition and construction of public facilities in Council District 1, including improvements for schools, utilities, roadways, landscaping, and parks.
• Cannabis Consumption Lounges. Advised the Office of Cannabis Management on the development of regulations for smoking and non- smoking cannabis consumption lounges at storefront cannabis dispensary sites. • Emergency Medical Services ( EMS) Corps. Assisted the Fire Department in establishing an EMS Corps program at McClellan Park. The program provides at- risk youth with training to become emergency medical technicians. • Limited Entertainment Permits. Assisted the Office of Nighttime Economy on amending the Sacramento City Code to create a new limited entertainment permit that will enable small businesses to provide entertainment, increase the vibrancy of our commercial corridors citywide, and create more opportunities for local musicians and other entertainers.

DEPARTMENT EFFICIENCIES

• Optimized budget savings by keeping vacant positions open.

• Conducted trials of legal research tools which would provide significant savings over current platform to address ongoing budget reductions for FY2025/26.

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FY2025/26 Proposed Budget

• Contracted for the destruction of over 2,140 cubic feet of case files and other office records which were past retention creating a net savings of $70,000 over the next 7 ½ years.

OBJECTIVES FOR FY2025/26

• Implement the processes put in place to enhance the office diversity, equity and inclusion goals designed to improve internal commitment for recruitment and hiring, outreach to the community, and operations within the City Attorney’s Office, as recently recognized by the California State Bar Gold Seal.

• Inform and advise the Council and City departments regarding Presidential Actions, including Executive Orders, Memorandums, and commencing litigation to protect the City from the federal government’s threat to terminate federal funding of existing grants.

• Assist the Council and City Manager with budget savings through increased efficiencies in the City Attorney’s Office.

• Provide citywide training through City U courses to include Public Records Act, public contracting, First Amendment issues, and the Brown Act.

• Continue to actively support and advise the City Council in the City’s pursuit of racial and social justice and racial equity through implementation of its Racial Equity Resolution and planned next steps, as well as continuing support for the Police Department and the Office of Public Safety Accountability as they write and implement policies addressing community oversight pursuant to the Council’s direction.

• Retain a staff of highly qualified and dedicated attorneys and support staff with extensive knowledge of the City of Sacramento and municipal law to deliver high quality legal services and advice more efficiently and effectively.

• Continue to defend the City’s legal interests in court and in administrative proceedings and initiate legal action and other initiatives to protect and advance the rights, interests, and quality of life of our community, and ensure justice and equity.

• Continue to pursue filing of petitions in CARE Court, to aid in addressing the homelessness crisis and the specific needs of the percentage of homeless individuals experiencing significant mental illness.

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FY2025/26 Proposed Budget

Department Budget Summary

Division Budget Summary

Staffing Summary

MEASURE U
The following chart summarizes the Office’s Measure U programs.

Change
City Attorney FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 13,288,417 $ 13,952,444 $ 15,534,095 $ 15,534,095 $ 15,729,665 $ 195,570 Other Services and Supplies 550,723 549,265 529,589 529,589 529,276 (313) City Property 18,121 22,040 13,750 13,750 13,750 -
Labor and Supply Offset (1,432,265) (1,286,975) (1,306,153) (1,306,153) (1,287,885) 18,268 Total $ 12,424,996 $ 13,236,774 $ 14,771,281 $ 14,771,281 $ 14,984,806 $ 213,525 Change
FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $ 9,470,193 $ 10,722,075 $ 11,520,990 $ 11,520,990 $ 9,760,771 $ (1,760,219) Interdepartmental Service 2,426,557 1,983,763 2,652,049 2,652,049 4,576,187 1,924,138 Measure U 254,564 245,789 279,402 279,402 326,924 47,522 Water 161,472 168,238 181,739 181,739 176,508 (5,231)
Wastew ater 52,000 54,178 54,203 54,203 57,766 3,563
Storm Drainage 46,526 48,475 73,333 73,333 77,022 3,689 Cty/Cnty Office-Water Planning 13,684 14,257 9,565 9,565 9,628 63 Total $ 12,424,996 $ 13,236,774 $ 14,771,281 $ 14,771,281 $ 14,984,806 $ 213,525 Change
City Attorney FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended City Attorney Division $ 12,424,996 $ 13,236,774 $ 14,771,281 $ 14,771,281 $ 14,984,806 $ 213,525 Total $ 12,424,996 $ 13,236,774 $ 14,771,281 $ 14,771,281 $ 14,984,806 $ 213,525 Change
City Attorney FY2022/23 FY2023/24 FY2024/ 25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals App roved Amended Proposed Proposed/Amended City Attorney Division 62.00 64.00 64.00 64.00 64. 00 - Total 62.00 64.00 64.00 64.00 64. 00 -
Funding Category Program Name FTE
FY2025/26
Proposed
Community Response
Operations City Att orney Department - 326,924
Grand Total - 326,924$
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10 SECTION - 10
City Auditor

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FY2025/26 Proposed Budget

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FY2025/26 Proposed Budget

City Auditor
The mission of the Office of the City Auditor is to provide a catalyst for improvements of municipal operations, promote credible, efficient, effective, equitable, fair, focused, transparent, and a fully accountable City Government.

The Office of the City Auditor is an essential element of the City of Sacramento's public accountability, built on standards of independence, objectivity, and technical accuracy. The audit process involves verifying compliance with laws and regulations, identifying internal control weaknesses and failures, and assessing whether the City has acquired and used its resources efficiently. The Office of the City Auditor conducts performance audits in accordance with Generally Accepted Government Auditing Standards and has strict quality assurance programs to ensure that staff exercise due professional care, adequately plan audits, and prepare work papers that contain sufficient and compelling evidence to support any statements of fact in its audit reports. The Office of the City Auditor consists of the following operations:
• Performance Auditing: Provides independent, objective, and reliable information regarding the City's ability to meet its
goals and objectives and establishes an adequate
system of internal controls.

• Research and Analysis: Provides independent , objective, and reliable research and analysis related to a wide variety of
topics including revenues, expenditures, diversity,
and community livability.

• Whistleblower Investigative
Audits:

Conducts i nvestigative audits of allegations of
potential improper government activities (i.e.,
fraud, waste, or abuse) reported through the
City’s whistleblower hotline.

PROGRAMS/SERVICE HIGHLIGHTS

• Developed an Annual Work Plan using several quantitative and qualitative techniques, sources, and stakeholder input to identify areas of high audit and research potential.
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FY2025/26 Proposed Budget

• Successfully passed a triennially -required peer review in accordance with Generally Accepted Government Auditing Standards.
• Issued the City Auditor’s Baseline Funding Verification for the Sacramento Children’s Fund. In compliance with section 120(e)(1)( C) of the City Charter, this report details the City Auditor’s efforts related to verifying that the Baseline Funding amount of $22.9 million was expended in FY2023/24.
• Issued the FY 2023/24 Audited Amount of Cannabis Business Operations Tax (CBOT) for the Sacramento Children’s Fund. In compliance with section 120(c)(2) of the City Charter, this report identifies the amount of CBOT for FY2023/24. • Issued Diversity Review of City Employment Applications, Hires, and Separations:

February 1, 2021, through January 31, 2024. This report is conducted on a triennial basis and analyzes the gender and ethnic diversity of City job applicants, new employees, promoted employees, and separated employees and compares the results to the demographics of the City of Sacramento residents. • Issued Department of Utilities’ Wastewater Fund Report. This report assessed the fiscal stability of the City’s wastewater system.
• Issued Department of Utilities’ Water Fund Report. This report assessed the fiscal stability of the City’s water system.
• Issued the Audit of the Sacramento Ethics Commission. • Issued the Performance Audit of the City of Sacramento’s Animal Care Services Division.
• Issued the City Auditor’s F Y2023/24 Annual Report. This report outlined the City Auditor’s work for the fiscal year.
• Monitored the status of nearly 100 open audit recommendations by conducting follow-up reviews every six months.
• Received and processed various whistleblower allegations regarding potential improper government activities (i.e., fraud, waste, or abuse).

DEPARTMENT EFFICIENCIES

• Continued our agreement with Missionmark to explore the potential for developing audit software that will digitize internal audit processes and reduce processing time. Fully implemented , Missionmark’s time tracking feature to help evaluate future project timelines and budgets.
• Developed three new dashboards to assess the gender and ethnic diversity of City employment applications, hires, and separations: Applicants Diversity, Hires Diversity, and Separations Diversity.
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FY2025/26 Proposed Budget

• Managed online dashboards that provide the public with interactive information on the status of whistleblower investigations, audit recommendations, and gender and ethnic composition of City employees.

OBJECTIVES FOR FY2025/26

• Improve the efficiency and effectiveness of City operations by performing audits and conducting independent research and analysis.
• Deter and detect improper government activities (i.e., fraud, waste, or abuse) by managing the City’s Whistleblower Hotline.
• Fulfill the City Auditor’s responsibilities related to the Sacramento Children’s Fund. • Provide work experience opportunities (internships) to college and high school students focused on building meaningful skill sets that will aid the students in obtaining full-time employment.

BUDGET AND POSITION CHANGES

Department Budget Summary

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Performance Auditing Delete one position (1.0 FTE - Assistant City Auditor) and add one position (1.0 FTE - Assistant Director) to improve operational efficiency and effectiveness.

General Fund - - -
Total Change - - -
Change
City Auditor FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 1,758,400 $ 1,744,788 $ 1,900,098 $ 1,900,098 $ 2,063,123 $ 163,025 Other Services and Supplies 115,470 97,223 163,581 163,581 163,581 - City Property 12,231 8,236 5,000 5,000 5,000 -
Labor and Supply Offset (164,783) (127,517) (187,255) (187,255) (174,356) 12,899 Total $ 1,721,317 $ 1,722,729 $ 1,881,424 $ 1,881,424 $ 2,057,348 $ 175,924 Change
FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $ 1,124,998 $ 1,146,719 $ 1,277,477 $ 1,277,477 $ 1,312,696 $ 35,219 Interdepartmental Service 476,696 427,958 440,589 440,589 570,861 130,272 Water 74,166 91,792 101,282 101,282 97,323 (3,959)
Wastew ater 23,925 29,611 32,672 32,672 33,020 348
Storm Drainage 21,532 26,649 29,404 29,404 43,448 14,044 Total $ 1,721,317 $ 1,722,729 $ 1,881,424 $ 1,881,424 $ 2,057,348 $ 175,924 203
FY2025/26 Proposed Budget

Division Budget Summary

Staffing Levels

Change
City Auditor FY2022/23 FY2023/24 FY 2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Ap proved Amended Proposed Proposed/Amended Performance Auditing Division $ 1,205,084 $ 1,195,660 $ 1,235,006 $ 1,235,006 $ 1,409,892 $ 174,886 Research & Analysis Division 516,233 527,069 646,418 646,418 647,456 1,038 Total $ 1,721,317 $ 1,722,729 $ 1,881,424 $ 1,881,424 $ 2,057,348 $ 175,924 Change
City Auditor FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Performance Auditing Division 7.00 7.00 7.00 7.00 7.00 - Research & Analysis Division 3.00 3.00 3.00 3.00 3.00 - Total 10.00 10.00 10.00 10.00 10.00 -
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FY2025/26 Approved Budget

11 SECTION - 11
City Clerk
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FY2025/26 Approved Budget

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FY2025/26 Approved Budget

City Clerk
The mission of the City Clerk’s Office is to provide quality public service and connect the public with the legislative process. We strive to ensure that the City’s legislative processes are open and public by providing a link between citizens and government with processes aimed toward transparency. Through efficient use of City resources, we can ensure the preservation of Sacramento’s legislative history.

The City Clerk serves as the Clerk of the Council and is responsible for the preparation of agendas, the recording and maintenance of all Council actions, and the preparation and filing of public notices.

• Office of the City Clerk: The office through which the Council, City Departments, and the public look for general information regarding the City. As the official records keeper for the City, the Clerk is responsible for the coordination and administration of all City records, documents, and public files. The City Clerk manages Public Record Act ( PRA) requests,
administers the City ticket policy and regulatory ticket distribution filings, conducts all bid openings, maintains the City’s municipal code and charter, receives all
claims filed against the City, researches issues related to Council and Committee actions, maintains contract
and agreement files, registers lobbyists, manages
online campaign filings and campaign finance
submissions, administers City board and commission
files, administers oaths of office, presides as the
Elections Official for the City and the Filing Officer for Fair Political Practices Commission requirements, and
serves as the official custodian of the City Seal.
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FY2025/26 Approved Budget

• Mayor-Council
Operations:

Manages the administrative, personnel, and fiscal
operations of the City Clerk’s Office and Offices of the Mayor and Council, including the Office of Public Safety Accountability.

• Ethics and Compliance: This office supports the Ethics Commission and focuses on reviewing existing City codes and policies, and
educating and training staff, public officials, and the community to ensure compliance. These guidelines are
found in the City Code and in adopted citywide policies.

PROGRAMS/SERVICE HIGHLIGHTS

• Continued to hire and train diverse staff in the responsibilities and requirements of the City Clerk’s Office. A large focus this year was on implementing training centered around succession planning for the City Clerk’s Office. Succession planning will remain a priority in FY2025/26.
• An additional focus this year, continuing into next year, is making more of the City’s records available in an easily accessible format on the City’s Open Data Portal.

Also, recently added over one hundred years of Sacramento election history that includes historical information on candidates and measures. • In a continued effort to offer our commissioners accessible training opportunities that satisfy governmental regulations, the City Clerk’s Office has made E qual Employment Opportunity (Assembly Bill 1825) and Ethics Education (A ssembly Bill 1234) training courses available online.

DEPARTMENT EFFICIENCIES

• Continued the review of operations in the City Clerk’s Office and Offices of the Mayor and Council for implementation of “best practices” for a more efficient workflow and accurate deliverables.
• Continued utilization of the Citywide Content Management System (CCM) as a tool in the implementation of a records management program focused on moving the City toward consistent administration and appropriate handling of the agency’s records and providing increased access to City records to both internal and external customers with the goal of increasing transparency in government. • Provided training opportunities to City staff on procedures and resources associated with the Clerk’s Office to maintain institutional knowledge and provided training on new policy and legal requirements to ensure compliance. • Continued evaluation and implementation of new and existing information technology tools to achieve sustainable services, increase transparency, and 208
FY2025/26 Approved Budget

provide new records and data to the public with an emphasis on immediate virtual access.
• Continued to utilize Microsoft Teams for better collaboration and accountability between both in-office and remote workers.
• Responded to over 3,200 California Public Records Act requests. • Implemented a new public facing webpage on schedule and in compliance with the DOTGOV Online Trust in Government Act of 2019, with a more streamlined appearance and a focus on transparency of the work of the City Clerk’s Office.

OBJECTIVES FOR FY2025/26

• Continue to utilize social media to communicate in a timely fashion with citizens on issues managed by the Clerk’s Office.
• Utilize new functionality in the Office 365 suite to reduce duplication and improve responses to PRA requests.
• Implement new technology to improve the timeliness of PRA request responses. • Continue to expand utilization of the CCM.
• Continue to refine and expand our Boards and Commissions recruiting, onboarding, and ongoing training to include the implementation of many virtual training modules.
• Continue to evaluate and expand our programs and technology tools to create more efficient processes and products for staff and citizens. • Continue to support the City’s nine elected officials and their staff with onboarding and offboarding employees, financial requests, travel, office budgets, ceremonial documents, and other administrative duties.

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FY2025/26 Approved Budget

Department Budget Summary

Division Budget Summary

Staffing Levels

Change
City Clerk FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 2,678,876 $ 3,074,830 $ 3,517,146 $ 3,517,146 $ 3,583,078 $ 65,932 Other Services and Supplies 451,037 647,193 625,682 618,932 619,032 100 City Property 75,617 33,953 2,000 2,000 2,000 -
Multi-Year Operating Projects - - 1,750 1,750 8,500 6,750 Labor and Supply Offset 1,850 3,557 - - - -
Total $ 3,207,381 $ 3,759,533 $ 4,146,578 $ 4,139,828 $ 4,212,610 $ 72,782 Change
FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $ 2,200,642 $ 2,618,484 $ 3,153,125 $ 3,146,375 $ 2,965,647 $ (180,728) Interdepartmental Service 1,006,739 1,141,049 993,453 993,453 1,246,963 253,510 Total $ 3,207,381 $ 3,759,533 $ 4,146,578 $ 4,139,828 $ 4,212,610 $ 72,782 Change
City Clerk FY2022/23 FY2023/24 FY2024/ 25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals App roved Amended Proposed Proposed/Amended City Clerk Division $ 3,100,372 $ 3,568,074 $ 3,867,813 $ 3, 861,063 $ 3,933,845 $ 72,782 Office of Ethics & Compliance Division 28,460 78,779 189,045 189,045 189, 045 - Mayor-Council Operations Division 78,548 112,680 89,720 89,720 89, 720 - Total $ 3,207,381 $ 3,759,533 $ 4,146,578 $ 4, 139,828 $ 4,212,610 $ 72,782 Change
City Clerk FY2022/23 FY2023/24 FY2024/ 25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals App roved Amended Proposed Proposed/Amended City Clerk Division 24.00 24.00 24.00 24.00 24. 00 -
Total 24.00 24.00 24.00 24.00 24. 00 -
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FY2025/26 Proposed Budget

12 SECTION - 12
City Manager
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212
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City Manager

The City Manager is the Chief Executive Officer of the City and is responsible for the leadership and direction of all operations, programs, and services, per City Charter. The City Manager facilitates the implementation of Council’s policies and priorities and provides policy recommendations to the Council concerning the annual budget, future needs of the City, and oversight of all City departments. The City Manager’s Office (CMO) contains a wide-range of high-profile programs that handle issue-specific needs such as:

Innovation and Economic Development, Media and Communications, Government al Affairs, Emergency Management, and Special Projects.

The City currently is facing a second year of a significant structural budget deficit, with expense growth outpacing revenue growth. This structural deficit is not driven by an overall recession in the economy. During and following the pandemic, choices were made to provide as many resources as we could to our community, and these resources were largely paid for by one- time federal relief funding. In addition, the City’s bottom line has also been affected by an expansion of City positions, compensation increases for employees, overall inflationary increases and voter -approved measures that have committed monies in the City’s General Fund to specific purposes. With the proposed budget for FY2025/26, the CMO and the Finance Department have identified a continued path toward fiscal sustainability and will continue to work closely with all City departments and the Mayor and Council offices to deliver an approved balanced budget per the City Charter.

PROGRAMS/SERVICE HIGHLIGHTS

Executive Office
• The Office of Governmental Affairs provides oversight and coordinates and develops policies for local, state, and federal legislative activities including management of the City’s contract lobbyists. The Office identifies state and federal 213
FY2025/26 Proposed Budget

funding opportunities and works with lobbyists and elected officials to secure needed resources. The Office serves as staff to Council’s Law and Legislation Committee, is responsible for the design and implementation of the annual state and federal legislative and policy platform and all Fair Political Practice Commission reporting. The Office has taken responsibility for overseeing the administration of large state grants secured by state legislators, with these grants funding critical City and community-led projects.
• Media and Communications coordinates with all departments to share key information and engage residents in City services, projects, and initiatives. In 2024, major efforts included announcing the new soccer stadium, supporting the Old Sacramento Waterfront revitalization, promoting new housi ng and homelessness services, and launching a branded New Year’s Eve event in Old Sacramento. The team also managed media and communications for the opening of Del Rio Trail, Broadway Complete Streets, and the Roseville Road Shelter and Service Campus, and press around Paul Thomas Anderson filming a Leonardo DiCaprio movie in Sacramento.

• The Special Projects unit leads and supports one-time and ongoing initiatives that provide accountability and drive data- driven decision-making to ensure that the City serves the community in the most effective and efficient way possible. For example, the Special Projects unit is helping departments tran sition their grant programs to the City’s Grants Management System (GMS) so that all data on City grant programs are available in a centralized system. In addition, the unit continues to maintain the Homelessness Response Dashboard that is updated weekly and the Measure U Budget Dashboard that is updated quarterly.

Community and Economic Development
• The Office of Innovation and Economic Development (OIED) focuses on opportunities to support and increase job creation, business growth, and development activities. Accomplishments for the office in the last fiscal year include continued deployment of state and federal funds for economic recovery programs including Food Access; Al Fresco Dining; Small Business Technical Assistance; Workforce Development; Childcare, Housing Development, Commercial Corridor Support; Financial Empowerment Center Expansion; and Outreach and Engagement.
• Continued work towards increasing affordable housing development including completing agreements for new residential units, applied for housing grant funds through the State, supported the zero dollar impact fee program, completed an exclusive right to negotiate agreement for City surplus property, supported on the disposition of City property, awarded $5.8 million in State Encampment Resolution Fund grant to pilot a street to housing program, contracted with the State for the 5th round of Homeless Housing, Assistance and Prevention (HHAP) program funding ($27 million) and began preparations for the 6
th round of HHAP funding.
• In addition to completing the construction of Aggie Square, OIED furthered the implementation of the Aggie Square Community Benefit Partnership Agreement. 214
FY2025/26 Proposed Budget

This included launching workforce pilots; completing the first housing project and breaking ground on two additional housing projects with City/SHRA funding supporting a total of 800 new units along Stockton Boulevard; and finalizing contracts totaling $2.4 million for Aggie Square Anti -displacement and Housing Stabilization program. This program has assisted 1,700 households and prepared 24 households for homeownership.
• Completed a storefront study of the social, economic and employment contributions of hospitality establishments in the central city that analyzed sales, taxes, and employment to quantify the contributions of our social economy. • Facilitated amending the City code to create the new Limited Entertainment Permit (LEP) to eliminate barriers and reduce costs to encourage smaller businesses to provide entertainment. Also facilitated adding a C ity code to establish entertainment zones to increase economic activity and enhance customer experience.
• Completed the third cohort of the Economic Gardening Program 2.0 which assisted 10 small businesses by pairing them with business experts who worked with them to develop and implement growth strategies. A total of 26 businesses have now completed the Economic Gardening Program 2.0 and have reported approximately 38% in revenue growth.
• Received Council approval of a term sheet to bring a new 12,000 -seat soccer stadium and live music venue to the Railyards. In addition, the year saw the opening of the Wong Center senior residence and groundbreaking for the new Kaiser hospital in the Railyards.
• Launched a Waterfront Reinvestment Program which will include rehabilitation of the Docks, the boardwalks, the barge, new life for the Public Market buildings and an Old Sacramento marketing campaign.

• Funded 256 events under the City of Festivals grant program with over 15,000 attendees, funded 17 Al Fresco grants and leveraged over $ 1,096,000 in total expenditures for the Shop916 program to support small businesses. • Continued the expanded Neighborhood Development Action Team (NDAT) Community Ambassador Program with 18 ambassadors to bring more trusted messengers to the community. The 18 ambassadors spoke 19 languages. The NDAT Community Ambassador program is an award winning cultural and language justice program created to facilitate multicultural bridge building to create and maintain relationships with community partners, businesses, and residents who represent linguistically diverse populations and/or historically underrepresented communities.
• Partnered with 28 community-based organizations to train and employ 632 youth and young adults through the #CaliforniansForAll Youth and Young Adult Workforce grant.
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FY2025/26 Proposed Budget

• The Financial Empowerment Center (FEC) continues to offer free professional one-on-one financial coaching for residents who are 18+. The FEC has assisted over 1,500 clients. This resulted in an average savings of $2,578 per client, with an overall savings of $830,201 and an average reduction in debt of $3,237, which resulted in over $3 million reduced debt.
• Launched the Small Business Assistance Center Pilot , a program dedicated to helping City of Sacramento small businesses start, grow, and thrive through technical assistance and microgrants.

Public Safety
• Office of Emergency Management (OEM) coordinates internal and allied agency communication, planning, preparedness, response, and recovery during largescale hazards affecting the city, including leading activations of Crisis Action Teams and the Emergency Operations Center. During the last fiscal year, staff responded to several storm-related incidents. Staff coordinated closely with FEMA to complete the disaster recovery process following the 2023 Winter Storms, recouping around $7.9 million dollars for the city. Additionally, staff facilitated a largescale utility-centered exercise and updated several internal and interagency plans, notably the 2025 All -Hazards Emergency Operations Plan and memorandums of understanding (MOU) to improve cohesion and unified response with other government agencies and non-government organizations.

OBJECTIVES FOR FY2025/26
• With a focus on equity and inclusion, continue to implement innovative approaches to strengthening Sacramento’s workforce, neighborhoods, and commercial corridors.
• Create processes for department engagement and capacity building, while strengthening community collaboration.
• Continue to advance catalytic projects, like Aggie Square, The Railyards and the Waterfront in a way that maximizes inclusive economic opportunities for adjacent communities and stimulates the economy.
• Pursue opportunities to permanently implement small business assistance programs that were developed during the pandemic and increase economic growth options for Sacramento’s small businesses.
• Explore and implement policies to streamline housing development and increase the stock of housing opportunities at all levels.
• Collaborate with departments citywide that award grants to update policies and implement improvements to the City’s Grant Management System. • Review performance measures and data practices within departments to align those measures with citywide strategic goals and operational priorities. 216
FY2025/26 Proposed Budget

REORGANIZATION

• As part of the FY2025/26 Budget, the Office of Cannabis Management consisting of

9.0 FTE positions and associated budgets were moved from the City Manager’s Office to the Finance Department. In addition, 4.0 FTE positions and associated budgets were realigned within the organization. The Language Access Coordinator (1.0 FTE) was moved from the Executive Office to Community Engagement and 3.0 FTE positions were moved from the Economic Development unit to the newly created Workforce Development unit.

BUDGET AND POSITION CHANGES

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Executive Office Transfer one position (1.0 FTE - Administrative Analyst) and corresponding Language Access
project (I02000410) from City Manager's
Executive Office to OIED Community
Engagement. Aligning the position's specialized
work effort
s to the best suited program area.

General Fund - (377,168) (1.00)
Office of Innovation and
Economic Development
Transfer one position (1.0 FTE - Administrative
Analyst) and corresponding Language Access
project (I02000410) from City Manager's
Executive Office to OIED Community
Engagement. Aligning the position's specialized
work effor
ts
Measure U - 375,718 1.00
Office of Innovation and
Economic Development
Delete one position (1.0 FTE - Development
Project Manager) in the Office of Innovation and
Economic Development (OIED) - Economic
Development unit.

Measure U - (137,281) (1.00)
Office of Innovation and
Economic Development
Delete one position (1.0 FTE -Development
Project Manager) in the OIED - Community
Investment unit.

Measure U - (137,281) (1.00)
Office of Innovation and
Economic Development
Delete one position (1.0 FTE - Administrative
Analyst) in the OIED - Community Engagement
unit.

Measure U - (115,831) (1.00)
Office of Innovation and
Economic Development
Decrease Measure U expense budget through
offsets related to the Redevelopment Agency
Successor Agency (RASA) Program. Increase
revenue/reimbursement for direct
programming efforts/staff labor.

Measure U - (57,679) -
Office of Innovation and
Economic Development
Liquidate one-time funding in the following
projects: SEED Corp (I18000200), Sac Dev
Academy (I02183000) and Forgivable Loan
(I02180400). Return unused dollars to fund
balance.

General Fund - (15,614) -
Office of Innovation and
Economic Development
Liquidate one-time funding in the following
projects: SEED Corp (I18000200), Sac Dev
Academy (I02183000) and Forgivable Loan
(I02180400). Return unused dollars to fund
balance.

Innovation and
Growth
- (777,756) -
217
FY2025/26 Proposed Budget

BUDGET AND POSITION CHANGES (continued)

Department Budget Summary

Division Budget Summary

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Office of Innovation and
Economic Development
Reduce on-going funding in the following multi-
year operating project fund via the Innovation and
Growth Fund (2031) I02180900, Inclusive
Economic Development. Return unused dollars to
fund balance.

Innovation and
Growth
- (162,102) -
Total Change - (1,404,994) (3.00)
Change
City Manager FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 10,698,655 $ 11,431,966 $ 12,422,510 $ 12,422,510 $ 10,950,616 $ (1,471,894) Other Services and Supplies 1,459,315 1,486,758 2,544,466 2,544,466 2,206,367 (338,099) City Property 62,180 48,506 24,326 24,326 19,326 (5,000) Multi-Year Operating Projects - - (12,030,278) (12,030,278) 3,334,409 15,364,687 Transfers (214,241) (73,906) - - (212,016) (212,016)
Labor and Supply Offset (72,857) (102,644) (264,131) (264,131) (633,117) (368,986) Operating Transfers (257,604) (370,355) - - - -
Total $ 11,675,447 $ 12,420,325 $ 2,696,893 $ 2,696,893 $ 15,665,585 $ 12,968,692 Change
FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $ 4,891,570 $ 5,986,721 $ 7,445,425 $ 7,445,425 $ 3,838,542 $ (3,606,883) Interdepartmental Service 1,639,182 1,536,200 1,557,424 1,557,424 1,745,996 188,572 Innovation and Grow th (15,147,276) 395,788 (13,319,764) (13,319,764) 4,246,050 17,565,814 Measure U 5,291,971 4,501,616 6,975,558 6,975,558 5,796,747 (1,178,811) Block Grant/Housing & Redev - - 29,250 29,250 29,250 -
2003 North Sac TE TABS - - 9,000 9,000 9,000 -
Ris k Mgmt 15,000,000 - - - - -
Total $ 11,675,447 $ 12,420,325 $ 2,696,893 $ 2,696,893 $ 15,665,585 $ 12,968,692 Change
City Manager FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Office of the City Manager Division $ 4,026,210 $ 4,660,212 $ 3,841,669 $ 3,841,669 $ 4,116,261 $ 274,592 Office of Cannabis Management Division 1,343,743 1,424,344 3,727,240 3,727,240 - (3,727,240) Office of Climate Action Initiatives Division 324,014 - - - - - Office of Innovation and Economic Dev Division 4,206,954 5,166,805 (6,474,410) (6,474,410) 9,588,362 16,062,772 Office of Emergency Management Division 434,374 549,816 691,322 691,322 682,046 (9,276) Office of Media & Communications Division 528,083 619,148 911,072 911,072 865,546 (45,526) Office of Youth Development 812,070 - - - - -
Workforce Development Division - - - - 413,372 413,372
Total $ 11,675,447 $ 12,420,325 $ 2,696,893 $ 2,696,893 $ 15,665,585 $ 12,968,692 218
FY2025/26 Proposed Budget

Staffing Levels

MEASURE U
The following chart summarizes the Office’s Measure U programs.

PERFORMANCE MEASURES

The Office of Innovation and Economic Development promotes a ‘business -friendly’ environment and provides assistance to encourage business growth and development. Tracking the number of businesses located in the city is a good indicator of a business- friendly environment. Source: ESRI Business Analyst**

In supporting the growth of business activity, Economic Development seeks to increase the number of job opportunities available to city residents. Tracking the total number of jobs in the city is a good indicator of increased opportunity for employment. Source: ESRI Business Analyst**

Change
City Manager FY2022/23 FY2023/24 FY2024/ 25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals App roved Amended Proposed Proposed/Amended Office of the City Manager Division 13.00 13.00 12.00 12.00 11. 00 (1.00) Office of Cannabis Management Division 9.00 9.00 9.00 9.00 - (9. 00) Office of Climate Action Initiatives Division 2.00 - - - - - Office of Innovation and Economic Dev Division 34.00 36.00 34.00 34.00 29. 00 (5.00) Office of Emergency Management Division 3.00 3.00 3.00 3.00 3. 00 - Office of Media & Communications Division 4.00 5.00 6.00 6.00 6. 00 - Office of Youth Development Division 5.00 - - - - -
Workforce Development Division - - - - 3.00 3.00
Total 70.00 66.00 64.00 64.00 52. 00 (12.00)
Funding Category Program Name FTE
FY2025/26
Proposed
Affordable Housing
Operations Housing 2.00 364,372
Inclusive Economic Development
Operations Community Engagement 8.00 1,415,116
Community Investment 6.00 1,082,121
Economic Development 7.00 1,244,189
Economic Development Administration 4.00 1,277,579 Miscellaneous
Workforce Development 3.00 413,372
Grand Total 30.00 5,796,749$
FY22 FY23 FY24 FY25 FY26
K ey Measure Actuals Actuals Actuals E stimate Target
Number of businesses in the city* 21,136 22,384 21,876 21,874 n/a FY22 FY23 FY24 FY25 FY26
Key Measure Actuals Actuals Actuals Estimate Target
Number of jobs in the city 286,896 285,037 287,118 282,839 n/a 219
FY2025/26 Proposed Budget

Changes in employment rates that correlate with job growth indicate job creation that is in harmony with the workforce needs. Source:

State of California Employment Development Department, Labor Market Information Division.

The department promotes and facilitates investment and development opportunities within the city to revitalize targeted commercial areas. Continued physical development and investment in the City remain essential to create jobs, improve quality of life, and provide the necessary infrastructure to attract development and businesses. Tracking building valuation and monitoring its trend line is an indicator of economic growth.

*Number of businesses in the city could be tracked by new versus renewal, gross receipts, and gross payroll if the City's BOT processing system and software is updated.

**ERSI is an international supplier of geographic information software system, geodatabase management, and business analytics data. ERSI extracts its business data from Dunn & Bradstreet.

FY22 FY23 FY24 FY25 FY26
Key Measure Actuals Actuals Actuals Estimate Target
Employment rate (calendar year) 95% 95.4% 95.3% 95% n/a FY22 FY23 FY24 FY2 5 FY26
Key Measure Actuals Actuals Ac tuals E stimate Target
Total investments made in Sacramento, by building
permit valuation $1.35 billion $1.19 billion $1.13 billion $1. 11 billion n/a 220
FY2025/26 Proposed Budget

13 SECTION - 13
City Treasurer

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FY2025/26 Proposed Budget

222
FY2025/26 Proposed Budget

City Treasurer
Provide banking, investment, and debt management services for and to protect the fiscal integrity of the City of Sacramento.

The City Treasurer is responsible for the deposit and investment of all City funds. The City Charter also provides that the City Treasurer keeps the Council informed regarding the status of investments and City funds. Additionally, the Council has directed that the City Treasurer should also provide public finance and debt issuance services for the City.

PROGRAMS/SERVICE HIGHLIGHTS

• Terminated the Public Bank project due to a lack of budget, after r eleasing a second RFQ for consulting services to prepare a Business Plan. • Implemented the setup of Virtual Reference Numbers to be used to streamline reconciliation
• Worked with the City’s Bank, IT and participating Lines of Business to develop a project plan for the city -wide implementation of a Service Fee Program. After Council approval of the service fee program, staff will begin implementation. • Assisted business units (City Clerk, Parking, Revenue) in establishing new e- commerce payment methods, providing a better customer experience, maximum flexibility, more revenue opportunities and strong security standards , all while maintaining Payment Card Industry (PCI) Compliance; Coordinated and co-led the team to another Clean Report of Compliance (ROC) while navigating new PCI 4.0 Requirements.
• Completed the issuance of Delta Shores Community Facilities District (Delta Shores Community Facilities District ) No. 2019- 01 Improvement Area No. 1 Special Tax Bonds, Series 2024. The issuance of these bonds allowed for the City’s acquisition of about $12.1 million in public improvements from the master developer of the Delta Shores Community Facilities District. • Completed the issuance of Greenbriar Community Facilities District (Greenbriar CFD) No. 2018-03 Improvement Area No. 2 Special Tax Bonds, Series 2024. The issuance of these bonds allowed for the City’s acquisition of about $30.8 million in public improvements from the master developer of the Greenbriar Community Facilities District.
223
FY2025/26 Proposed Budget

• Managed the cash flow for the City, Sacramento City Employees’ Retirement System (SCERS), Sacramento Housing and Redevelopment Agency (SHRA), Sacramento Public Library Authority (SPLA), and other trust funds between the bank and the investment pools to gain interest earnings and provide liquidity in a prudent manner.

Consistently one of the top performing municipalities in the State of California over the long term. The investments staff is now managing almost $2 billion.

• SCERS Plan achieved over 101% funding status in a year where continued high inflation led to larger than anticipated participants balance increases. Staff continues to demonstrate disciplined investment strategies in both positive and negative market environments , ensuring our almost 750 plan participants will receive the benefits they are entitled to. A fully funded plan reduces the necessity of large annual City Contributions into the plan.

DEPARTMENT EFFICIENCIES

• Automated the daily cash flow process that links the city and banking data in real- time, thus improving accuracy and efficiency.
• Streamlined trade processing and implemented new reconciliation methods and procedures to ensure validity and reliability of investment records. • Utilized a third -party consultant to proactively monitor on an ongoing basis the credit ratings and outlook of outstanding bonds, thereby freeing up City staff to focus on other debt management-related responsibilities.

OBJECTIVES FOR FY2025/26

• Complete reviews and implement citywide banking policies and procedures that will complement existing procedures for D epartments; Continue to evaluate and establish a citywide Credit Card Fee Policy. Incorporate and remediate new PCI DSS 4.0.01 requirements into PCI Policies and Procedures.

• Implement a citywide Service Fee program to eliminate the city’s subsidy of merchant fees for credit card payments made to the city by passing them on to the customers.

The project aims to implement through a phased approach with most Lines of Businesses adopting by Summer 2025
• Work on the issuance of bonds for Aggie Square Community Facilities District to acquire infrastructure from the developer.
• Work with the City Manager’s Office’s Office of Innovation and Economic Development, Convention and Cultural Services Department, and the City Attorney’s Office on the issuance of the 2025 Transient Occupancy Tax Revenue Bonds to finance projects included in the Waterfront Reinvestment Program. 224
FY2025/26 Proposed Budget

• Work with the Finance Department and the City Attorney’s Office on the formation of the Innovation Park Community Facilities District and the Innovation Park Enhanced Infrastructure Financing District . The formation of both districts will enable future bond issuances for the City’s acquisition of public improvements from the Innovation Park developers.
• Continue to work with the Department of Public Works and other City departments on the development of the Sacramento Valley Station Governance Study. • Work with the City Manager’s Office and Eco nomic Development to address solutions for short-term funding needs for potential development projects that may require funding through non-traditional means.
• Work with the Mayor and Council to create criteria to assist in the prioritiz ation of projects and uses of surplus Transient Occupancy Tax (TOT) revenues to ensure charter compliance, promote equity, and further TOT revenue generation.

Continue to build a succession and training plan that helps to cultivate staff in preparation for natural attrition with a focus on knowledge sharing for the subsequent hiring of future replacement staff . Bring on an additional Investment Officer for a vacant FTE in investments to start this process. • Work with Banking Manager and Finance to onboard more vendors into the City’s Single Use Account and Automated Clearing House payment programs to cut down on the number of large checks the C ity must float to cover daily , which reduces the potential for higher yields on Pool A funds.

Department Budget Summary

Division Budget Summary

Change
City Treasurer FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 2,165,534 $ 2,266,233 $ 2,898,455 $ 2,898,455 $ 2,992,665 $ 94,210 Other Services and Supplies 177,228 218,813 253,111 253,111 248,111 (5,000) City Property 1,820 1,818 5,000 5,000 5,000 -
Multi-Year Operating Projects - - 1,000 1,000 1,000 -
Labor and Supply Offset (10,360) (77,976) 350 350 - (350) Total $ 2,334,222 $ 2,408,888 $ 3,157,916 $ 3,157,916 $ 3,246,776 $ 88,860 Change
FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $ 1,171,003 $ 1,179,479 $ 1,753,719 $ 1,753,719 $ 1,695,912 $ (57,807) Interdepartmental Service 1,163,219 1,229,409 1,404,197 1,404,197 1,550,864 146,667 Total $ 2,334,222 $ 2,408,888 $ 3,157,916 $ 3,157,916 $ 3,246,776 $ 88,860 Change
City Treasurer FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended City Treasurer Division $ 2,334,222 $ 2,408,888 $ 3,157,916 $ 3,157,916 $ 3,246,776 $ 88,860 Total $ 2,334,222 $ 2,408,888 $ 3,157,916 $ 3,157,916 $ 3,246,776 $ 88,860 225
FY2025/26 Proposed Budget

Staffing Levels

Change
City Treasurer FY2022/23 FY2023/24 FY 2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Ap proved Amended Proposed Proposed/Amended City Treasurer Division 14.00 14.00 14.00 14.00 14.00 - Total 14.00 14.00 14.00 14.00 14.00 -
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14 SECTION - 14
Community Development
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Community Development
We help plan, build, and maintain a great city.

The Community Development Department plans for growth, development, and prosperity in Sacramento; reviews and approves development applications and building permits; responds to issues related to the Health and Safety Code while ensuring well - maintained properties and preserving the existing housing stock; and provides animal care services. The Department consists of the following service areas.

• Administrative Services: Provide centralized support for D epartment budgeting, accounting, personnel services,
procurement, boards and commissions, and
marketing and communications.

• Animal Care Services: Provide animal care services through enforcement of City c odes with emphasis on public safety, cruelty,
and abuse investigations, sheltering, adoption, and
community outreach, along with a robust volunteer
program affording a high level of community
engagement.

• Building: Protect public health and safety by regulating construction and development through provision of
permits, plan review, and building inspections.

Provide building application and building permit
services and specialized development project
management services.

• Code Compliance: Promote and maintain a safe and desirable living and working environment through enforcement of
City and state codes. Programs and services include
neighborhood and business code compliance,
graffiti, vehicle, and weed abatements, substandard/
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FY2025/26 Proposed Budget

dangerous building inspections, tenant protection,
vacant building and lot monitoring , and residential
rental housing inspections and monitoring.

• Planning: Provide a vision for a great city by leading the City’s planning, development, urban design, and historic
preservation efforts. Guide development for public
and private sector investment throughout our
community.

PROGRAMS/SERVICE HIGHLIGHTS

• The Administrative Services Division monitored over $93 million in free credits.

• Animal Care Services Homeless Outreach and Assistance Program has provided vaccinations, veterinary care, and spay/neuter services to 1,509 animals owned by 832 residents.

• Building Division launched Streamline Sacramento, a cross-departmental effort to examine the City’s procedures for reviewing and approving development projects, with an emphasis on housing. The objective is to refine or establish internal processes that accelerate project approval timelines.

• The Building Division completed 23,297 plan reviews and 71,942 inspections in FY2023/24. A kiosk at the public counter was launched to assist customers.

• Code Compliance Division conducted a North Area graffiti sweep at the request of several community partners in the midtown/Downtown areas . O ver 800 cases were opened due to identified violations , Code Compliance collaborated closely with the property owners to gain compliance.

• Over 4,500 vehicles were towed citywide by Code Compliance, and an additional 625 hazardous or abandoned recreational vehicles and/or trailers were towed and destroyed.

• The Tenant Protection Program was extended to 2029.

• The Planning Division facilitated the adoption of an interim ordinance to permit Missing Middle Housing allowing for multiple residential units, previously single- unit zones, and is processing new applications for this newly permitted type of housing. As of March 2025, 11 applications for new, Missing Middle Housing are in-process.

o Planning staff is on-track to process approximately 521 private development applications by the end of FY2024/25. Projects range from construction of new residential mixed-use buildings, ministerial housing review, and retail 230
FY2025/26 Proposed Budget

development to tentative maps to subdivi de land for future development. Notable projects this year have incl uded: Residential and commercial development in the Panhandle, Railyards, and Delta Shores areas.

DEPARTMENT EFFICIENCIES

• Animal Care Services had a backlog of 772 spay and neuter surgeries in September of 2024, due to veterinary staffing shortages in the Division and outside veterinarian vendors. By March 2025, that number has been reduced to 398, due to the hiring of two shelter veterinarians and increased external spay and neuter services. These additional resources reduced the number of animals in foster -to- adopt homes and reduced costs by no longer requiring veterinary care for those animals.

• The Building Division initiated the remote building inspections program, allowing for convenient virtual inspections for minor residential building permits . This program will increase the number of inspections that can be conducted daily.

• The Code Compliance Division modified the Tenant Protection Program to clarify requirements of the code and to extend the sunset date to December 2029. The Tenant Protection unit created interactive forms and revamped the webpage to streamline processes that increased the program’s accessibility.

• The Planning Division published how-to guides for all tasks performed by Planning counter staff. This has resulted in greater consistency in shared tasks and improved succession planning by minimizing the amount of time to train new staff.

OBJECTIVES FOR FY2025/26

• The Administrative Services Division will lead a fee study for various fees with each division.

• Recruit and improve the retention of staff for all sections of the animal shelter.

• Complete implementation of Streamline Sacramento, a cross-departmental effort to examine the City’s procedures for reviewing and approving development projects, with an emphasis on housing.

• Complete modifications to the Tobacco Retailers License Program to include Council priorities and code enforcement priorities to the ordinance.

• Create an enhanced vacant building and vacant property ordinance with increased enforcement and monitoring tools.

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FY2025/26 Proposed Budget

• Implement a new code enforcement case management and reporting system that will be used by several departments.

• Amend the Planning and Development Code to implement the Missing Middle Housing and other land use policies of the 2040 General Plan.

BUDGET AND POSITION CHANGES

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Administration Delete one position (1.0 FTE - Accountant Auditor) and add one new position (1.0 FTE - Administrative Analyst).

This request has zero impact on the General Fund as
the suppl
ies and services budget in Administrative
Services is being reduced to make this cost neutral.

General Fund - 703 -
Administration Delete one position (1.0 FTE - Support Services Manager) in the Administrative Services Division.

General Fund - (145,176) (1.00)
Animal Care Increase revenue budget for Animal Care license fees/revenue increase. This revenue increase is based
on increased fees in FY25 budget development along
with strengthening partne
rships with local veterinary
hospitals to secure comprehensive rabies vaccination to increase licensed animals in the city.

General Fund (50,000) 50,000 -
Animal Care Increase revenue budget for Animal Care license fees/revenue increase. This revenue increase is based
on increased fees in FY25 budget development along
with strengthening partne
rships with local veterinary
hospitals to secure comprehensive rabies vaccination to increase licensed animals in the city.

Measure U - (50,000) -
Building Delete one position (1.0 FTE - Senior Development Project Manager) in the Building Division.

General Fund - (145,668) (1.00)
Building Change department management of the ADA Education and Training project (I08000100) from Human
Resources to the Community Development Department.

This realignmen
t will optimize resource utilization by
ensuring the project is managed by the department best
positioned to implement training and education
programs.

General Fund (80,000) 80,000 -
Code Compliance Increase revenue budget for Neighborhood Code Compliance (NCC) based on previous one-time revenue
increase and additional estimated revenue.

General Fund (750,000) - -
Code Compliance Increase revenue budget for the Business Compliance (BC) Tenant Protection Program (TPP) based on
previous one-time revenue increase and additional
estimat
ed revenue.

General Fund (350,000) - -
Code Compliance Increase revenue budget in the Code Enforcement Division by establishing a Code Technology Fee and
Capital Improvement Project (CIP). The Code
Technolog
y Fee would provide a dedicated funding
mechanism for technology-related needs, including the
offset of two positions (1.0 FTE - Senior Department
Systems Specialist and 1.0 FTE - Department Systems
Specialist) currently budgeted in the Information
Technology (IT) Department.

General Fund (400,000) 400,000 -
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FY2025/26 Proposed Budget

BUDGET AND POSITION CHANGES (continued)

Department Budget Summary

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Code Compliance Increase revenue budget for Code Enforcement Division to align with actuals in Housing and Dangerous
Buildings (HDB), Rental Housing Inspection Program
(RHIP), Neighborhood Code Enforcement, and
Business Compliance.

General Fund (808,978) - -
Planning Delete one position (1.0 FTE - Associate Planner) in the Planning Division.

Measure U - (117,055) (1.00)
Planning Increase revenue budget for the Planning Division and increase fees related to plan check inspection. The
reason for the budget and fee increases is to adjust the planning revenue budget based on adjustments to the
structure of the fees related to the plan check review
and inspection process.

General Fund (400,000) - -
Planning Increase revenue for the General Plan Updates Project (I22000000) by increasing the maximum building
valuation amount subject to the General Plan
Maintenance Fee which increases the per-permit fee
cap from $26,000 to $38,200. Increase Long Range
Planning employee offset by allocating additional time to the General Plan Updates Project.

Measure U - (100,000) -
Planning Increase revenue for the General Plan Updates Project (I22000000) by increasing the maximum building
valuation amount subject to the General Plan
Maintenance Fee which increases the per-permit fee
cap from $26,000 to $38,200. Increase Long Range
Planning employee offset by allocating additional time to the General Plan Updates Project.

Development
Services
(100,000) 100,000 -
Total Change (2,938,978) 72,804 (3.00) Change
Community Development FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 35,273,739 $ 37,392,910 $ 44,507,820 $ 44,621,085 $ 44,909,281 $ 288,196 Other Services and Supplies 10,903,029 12,331,808 12,467,545 12,354,405 11,658,568 (695,837) City Property 240,908 129,838 181,641 181,516 181,516 - Multi-Year Operating Projects - - 8,488,400 8,263,400 7,110,700 (1,152,700) Transfers 327,838 402,428 328,418 328,418 704,606 376,188 Labor and Supply Offset (3,519,826) (2,916,694) (3,080,429) (3,080,429) (3,802,821) (722,392) Operating Transfers - 39 - - - -
Total $ 43,225,689 $ 47,340,329 $ 62,893,395 $ 62,668,395 $ 60,761,850 $ (1,906,545) Change
FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $ 31,236,205 $ 31,731,433 $ 37,553,279 $ 37,553,279 $ 38,289,588 $ 736,309 Development Services 158,088 - 3,688,700 3,688,700 2,800,000 (888,700) Landscaping and Lighting 206,913 258,827 262,600 262,600 269,165 6,565 Measure U 10,166,525 11,915,904 18,168,816 17,943,816 16,953,097 (990,719) Special Program Donations - - 250,000 250,000 250,000 - Cityw ide Low Income Housing 1,804,605 3,799,207 2,970,000 2,970,000 2,200,000 (770,000) Ris k Mgmt (346,647) (365,041) - - - -
Total $ 43,225,689 $ 47,340,329 $ 62,893,395 $ 62,668,395 $ 60,761,850 $ (1,906,545) 233
FY2025/26 Proposed Budget

Division Budget Summary

Staffing Levels

MEASURE U

The following chart summarizes the Department’s Measure U programs.

Change
Community Development FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Administration Division $ 2,477,410 $ 3,097,526 $ 3,775,562 $ 3,775,562 $ 2,615,499 $ (1,160,063) Animal Care Services Division 7,763,511 8,152,789 9,233,229 9,193,229 9,437,270 244,041 Building Division 14,918,893 13,942,000 19,224,400 19,224,400 18,816,587 (407,813) Planning Division 6,959,083 9,547,286 15,917,285 15,917,285 14,792,134 (1,125,151) Code Compliance Division 11,106,793 12,600,729 14,742,919 14,557,919 15,100,361 542,442 Total $ 43,225,689 $ 47,340,329 $ 62,893,395 $ 62,668,395 $ 60,761,850 $ (1,906,545) Change
Community Development FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Administration Division 18.00 19.00 19.00 19.00 18.00 (1.00) Animal Care Services Division 61.00 63.00 63.00 63.00 63.00 - Building Division 90.00 90.00 89.00 89.00 88.00 (1.00)
Planning Division 54.00 55.00 55.00 55.00 54.00 (1.00)
Code Compliance Division 92.00 92.00 92.00 92.00 92.00 - Total 315.00 319.00 318.00 318.00 315.00 (3.00)
Funding Category Program Name FTE
FY2025/26
Proposed
Affordable Housing
MYOP NDAT - 600,000
Zero-Dollar Rate Program - 3,000,000
Operations Long Range 13.00 446,785
Zoning 5.00 409,264
Community Development
MYOP Fleet Acquisitions - 165,000
Community Response
MYOP Commission Stipends - 7,500
Operations Animal Care Administration 14.00 1,182,984 Animal Care/Shelter 34.00 5,005,634
Neighborhood Code Compliance 40.00 4,229,520
Public Safety - Community Development
Operations Animal Enforcement/Field Services 15.00 1,906,408 Grand Total 121.00 16,953,095$
234
FY2025/26 Proposed Budget

PERFORMANCE MEASURES

Animal Care Services Division

The live release rate is a key measure of the Front Street Animal Shelter's success in achieving its mission of saving lives. The live release rate can be affected by a variety of factors including the health of animals upon intake, the number of animals received due to bite/abuse/neglect investigations, staffing levels, and volunteer/community involvement.

Building Division

Most inspections are completed on the day that they are scheduled.

Most residential permits are minor in nature and may be approved in the online permitting platform. This measure is tracked nationally and offers a means of comparison with other agencies.

Code Compliance Division

Abandoned or inoperable vehicles are investigated by Neighborhood Code Compliance. When a Code Enforcement Officer confirms a vehicle violation, the vehicle is marked, and the registered owner of the vehicle has three days to remove the vehicle, or it may be towed.

Planning Division

The Planning Division tracks and reports the time it takes to approve an application for the Site Plan and Design Review. This review includes a technical analysis of the project to determine compliance with development standards, design guidelines, and the California Environmental Quality Act (CEQA). The application may be approved the staff or Director level.

FY22 FY23 FY24 FY 25 FY26
K ey Measure Actuals Actuals A ctuals E stimate Target
Percent of animals that are adopted, transferred, sent
to rescue, or returned to ow ner (live release rate).
85% 87% 81.9% 90% 90%
FY22 FY23 FY24 FY 25 FY26
K ey Measure Actuals Actuals A ctuals E stimate Target
Percent of development inspections performed on the
day scheduled.
99% 98% 96% 96% 97%
FY22 FY23 FY24 FY 25 FY26
K ey Measure Actuals Actuals A ctuals E stimate Target
Percentage of residential building permits issued w ithin tw o days
85% 87% 86% 85% 85%
FY22 FY23 FY24 FY 25 FY26
K ey Measure Actuals Actuals A ctuals E stimate Target
Vehicle cases closed w ithin 21 days 52% 64% 53% 78% 60% FY22 FY23 FY24 FY 25 FY26
K ey Measure Actuals Actuals A ctuals E stimate Target
Percent of Site Plan and Design Review (DR) Files
completed w ithin 90-days.
72% 59% 56% 46% 55%
235
FY2025/26 Proposed Budget

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FY2025/26 Proposed Budget

15 SECTION - 15
Community Response
237
FY2025/26 Proposed Budget

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Community Response
The mission of the Department of Community Response is to provide compassionate and individualized support to people experiencing homelessness with the goal of aiding them on their path toward recovery, wellness and self-sufficiency.

On July 1, 2020, the City Council directed the City Manager to develop an alternative response model for 911 calls that do not require traditional emergency services. This response was originally created as a Division in the City Manager’s Office. The Divi sion became the standalone Department of Community Response (DCR) effective July 1, 2021. DCR deploys teams of social workers and outreach specialists throughout the city to help people experiencing homelessness get off the streets and into improved circumstances. DCR manages and monitors the City's emergency shelters and programs that serve people experiencing homelessness. The goal of DCR is to provide an alternative response to divert entry into jails and emergency rooms by connecting individuals in need with appropriate services and treatment options to better resolve issues.

DCR’s director also oversees the City's multi -departmental Incident Management Team responding to homelessness, which ensures all available resources are utilized and leveraged in the best manner possible to address the homelessness crisis.

DCR is comprised of the following three offices:

• Office of Community Outreach (OCO): Responsible for responding to 311 calls for service by deploying teams of social workers and outreach specialists who help people experiencing homelessness access shelter and support using evidence- based practices such as cultural competency, motivational interviewing and strengths-based approaches that are not typically found within traditional emergency response models.

• Office of Homeless Services (OHS): Responsible for managing the City’s effort to shelter and house people experiencing homelessness, which includes coordinating with various Federal, State, local, nonprofit and faith- based entities and administering millio ns of dollars in contracts to fund emergency shelter, wraparound services and housing projects.

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FY2025/26 Proposed Budget

• Office of the Director (OOD): Responsible for the City’s strategic plan to respond to homelessness as well as the Department’s fiscal, human resources, government affairs, communications and administrative management.

PROGRAMS/SERVICE HIGHLIGHTS

• In 2024, City-funded shelters provided shelter to 4,769 individuals including 1,248 children. In 2024, 3,288 individuals exited City-funded shelters including 741 (23%) who exited to permanent housing and 792 (24%) who exited to an improved housing destination.

• In the second year of the Incident Management Team (IMT), DCR continued to maintain and coordinate a collaborative approach to address City code violations while also connecting unhoused community members to services and shelter. In collaboration with the Sacramento Police Department, Fire Department, Code Compliance, Animal Control, City Park Rangers and other contracted providers, the IMT accomplished the following in calendar year 2024:
ο Responded to and closed more than 57,000 calls, including 39,157 which involved compliance/outreach and 18,732 pertaining to trash/cleanup, resulting in over 9 million pounds of trash removed. ο Generated more 14,000 client engagements for various services. ο Obtained more than 5,900 instances of compliance and enforcement.

• DCR continued to coordinate implementation of the City -County Partnership.

Providing a framework for robust coordination between City and County personnel, the partnership agreement has resulted in 4,922 Homeless Management Information System (HMIS) enrollments, 84,022 services being provided, and over 1,200 people being placed into rapid placement shelter sites. The collaboration between the City and County also resulted in the opening of the Stockton Boulevard Safe Stay shelter with a capacity for 175 individuals. The partnership leverages existing revenue streams and funded programs to achieve significant success without additional costs. The cumulative success of this partnership is a driving factor behind the nearly 30 percent drop in unsheltered homelessness observed in the biennial 2024 Point-In-Time Count.

• The Office of Community Outreach applied for and received a grant from the State’s Encampment Resolution Fund - Round 4 (ERF 4L) in an amount of $12.4 million. ERF 4L funds actionable, person-centered local proposals that resolve the experience of unsheltered homelessness for people residing in encampments and demonstrate clear pathways to permanent housing. DCR’s proposal focuses outreach directly on the Sacramento Northern Parkway Trail and surrounding neighborhoods. The funded program will expand the Roseville Road Shelter and Service Campus by 100 pallet style homes, adding electricity, and providing high intensity outreach and services and enhanced shelter and housing sup port to program participants.
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FY2025/26 Proposed Budget

• In collaboration with the Office of the City Manager, DCR launched a public facing IMT Data Dashboard featuring key performance metrics in an easy -to-use interface. By providing weekly updated information related to homelessness response, this tool has reduced demands on staff time to respond to information requests and allowed a more cost-effective focus on response.

• The Office of Community Outreach established more in- depth social -service- focused response teams. These teams include staffing the Street Overdose Response Team (SORT) in partnership with the Fire Department, as well as case- carrying work focused on rehousing and resource connection.

DEPARTMENT EFFICIENCIES

• The Office of the Director continued to work on strategic planning, management of fiscal/budget, and HR solutions. OOD has refined DCR recruitment, selection, and hiring processes to support all programs and operations. In FY2023/24, DCR successfully recru ited and hired a Senior Staff Assistant and an Administrative Analyst, promoted two employees to Program Specialists and promoted one employee from Interim Director to Director.

• The Office of Homeless Services renegotiated contracts for the City Motel program and security services at shelters, saving the City $3.7 million annually.

• The Office of Homeless Services strengthened its monitoring of City Sheltering programs to include new performance analytics.

• The Office of Community Outreach streamlined the operations and implementation of the City Weather Respite Program to quickly stand- up respite centers as needed.

• The Office of Community Outreach continued to enhance efficiencies created through its collaborative work with IT on the Salesforce platform, which organizes department and customer response to 311 calls for services regarding homelessness.

OBJECTIVES FOR FY2025/26

• Develop solutions to address funding issues by reducing costs across sheltering contracts while improving performance through increased focus on key performance indicators.

• Develop and pilot innovative “ultra-affordable” Micro Community program to serve as a fiscally responsible bridge between emergency shelter and time/resource intensive housing development.

• Continue to apply for all grant funding available (i.e., Homeless Housing, Assistance and Prevention and Encampment Resolution Funding). 241
FY2025/26 Proposed Budget

• Conduct monthly reviews of shelter performance analytics.

• Finalize and launch Customer 360 Phase 2 in collaboration with IT on Salesforce.

This update to the 311-customer interface is expected to drive more cost and time efficient response and improved customer service.

• Continue to collaborate with local partners including the County of Sacramento, Sacramento Steps Forward, the Sacramento Continuum of Care, and the Sacramento Housing and Redevelopment Agency, to execute “All In Sacramento,” Sacramento’s Regionally Coordinated Framework and Action Plan to Prevent and End Homelessness.

BUDGET AND POSITION CHANGES

Department Budget Summary

Division Budget Summary

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Community Outreach Increase funding for three new vehicles for Neighborhood Resource Coordinator (NRC)
positions, two to be offset with Opioid Settlement
Funds.

Measure U - 46,718 - Community Outreach Change funding source for two Neighborhood Resource Coordinator (NRC) FTE positions from
Measure U fund to the Fire Opioid Settlement Project
for the NRC's time on the City's Street Overdose
Response Team (SORT).

Measure U - (228,102) - Total Change - (181,384) - Change
Community Response FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 3,244,449 $ 3,457,932 $ 4,858,122 $ 4,858,122 $ 5,280,083 $ 421,961 Other Services and Supplies 464,484 412,070 682,583 682,583 755,280 72,697 City Property 11,346 3,169 322,790 322,790 285,830 (36,960) Multi-Year Operating Projects - - 19,581,070 19,581,070 11,506,710 (8,074,360) Transfers - 71,223 - - - -
Labor and Supply Offset - (3,523) - - (411,442) (411,442) Total $ 3,720,279 $ 3,940,871 $ 25,444,565 $ 25,444,565 $ 17,416,461 $ (8,028,104) Change
FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended Measure U $ 3,720,279 $ 3,940,871 $ 25,444,565 $ 25,444,565 $ 17,416,461 $ (8,028,104) Total $ 3,720,279 $ 3,940,871 $ 25,444,565 $ 25,444,565 $ 17,416,461 $ (8,028,104) Change
Community Response FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Office of Director $ 1,128,301 $ 1,188,362 $ 1,051,385 $ 1,051,385 $ 1,355,475 $ 304,090 Office of Community Outreach Division 1,823,302 2,152,052 13,095,929 13,095,929 13,041,642 (54,287) Office of Homeless Services Division 768,676 600,456 11,297,251 11,297,251 3,019,344 (8,277,907) Total $ 3,720,279 $ 3,940,871 $ 25,444,565 $ 25,444,565 $ 17,416,461 $ (8,028,104) 242
FY2025/26 Proposed Budget

Staffing Levels

MEASURE U

The following chart summarizes the Department’s Measure U programs.

PERFORMANCE MEASURES
Community Response

Change
Community Response FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Office of Director 8.00 7.00 6.00 7.00 7.00 -
Office of Community Outreach Division 24.00 24.00 25.00 25.00 25.00 - Office of Homeless Services Division 6.00 6.00 6.00 6.00 6.00 - Total 38.00 37.00 37.00 38.00 38.00 -
Funding Category Program Name FTE
FY2025/26
Proposed
Community Response
MYOP Community Response - 9,313,992
Fleet Acquisitions - 46,718
Operations Office of Community Outreach 25.00 3,680,932 Office of Director 7.00 1,355,475
Homelessness
MYOP Homeless Housing Initiative - 2,146,000
Operations Office of Homeless Services 6.00 873,344 Grand Total 38.00 17,416,461$
FY22 FY23 FY24 FY25 FY26
Key Meas ure Actuals Actuals Actuals E stimate Target
311 Calls Responded To [1] 20,768 28,397 66,455 54,060 52,000 FY22 FY23 FY24 FY25 FY26
Key Meas ure Actuals Actuals Actuals E stimate Target
Unique Clients Served by Street Outreach [2] n/a n/a 4,483 4,694 4,000 FY22 FY23 FY24 FY25 FY26
Key Meas ure Actuals Actuals Actuals E stimate Target
HMIS Enrollments [3] n/a 397 4,809 4,754 4,700
FY22 FY23 FY24 FY25 FY26
Key Meas ure Actuals Actuals Actuals E stimate Target
Rapid Placements [4] n/a 621 1,089 1,086 1,600
[1] Refers to the total number of 311 calls responded to and closed by DCR staff, in coordination with Sacramento PD’s IMPACT team, Park Rangers, Hope Cooperative, and Forensiclean. Calls include the following service types; Homeless Encampment Trash, Homeless Encampment Concern, Homeless Encampment 500ft from School, Homeless Encampment Blocking Sidewalk and Unhoused Self-Referral.[2] Count of unique client services were provided to, in partnership with Sacramento County, Hope Cooperative and Community Health Works. [3] Count of individuals enrolled into DCR Partnerships Program or the City of Sacramento – Sacramento County Collaboration program within HMIS.
[4] Rapid Placements are placements directly into the Roseville Road Campus (formerly Miller Park until January 2024) and the Outreach and Engagement Center, via DCR Staff and contractors.
243
FY2025/26 Proposed Budget

Community Response (continued)

FY22 FY23 FY24 FY25 FY26
Key Meas ure Actuals Actuals Actuals Estimate Target
City Funded Shelter Sites 16 17 18 18 18
City Funded Shelter Beds 1,068 1,135 1,375 1,375 1,475 Individuals Sheltered in City Funded Shelter Beds 2,754 3,725 4,364 5,496 5,700 244
FY2025/26 Proposed Budget
16 SECT
ION - 16
Convention and Cultural Services
245
FY2025/26 Proposed Budget

246
FY2025/26 Proposed Budget

Convention and Cultural Services
The mission of the Convention and Cultural Services Department is to promote and preserve our unique culture and heritage by delivering accessible arts, leisure, and educational experiences to enrich people's lives and enhance the metropolitan area.

The Convention and Cultural Services Department (CCS) provides exceptional cultural, artistic, and leisure opportunities that enrich the quality of life and contribute to a vibrant metropolitan region. As key contributors to the region’s quality of life, our many arts, culture and entertainment venues serve both residents and visitors. Significant economic impact can be attributed directly to the numerous educational, cultural, and recreational events offered. These experiences are provided by our divisions and nonprofit partners. The Department includes the following operations and programs/services:

• CCS Administration: Provides overall Department policy, oversees financial transactions, and assists divisions with
human resources functions.

• Crocker Art Museum: The Crocker Art Museum brings people together and connects them in unexpected ways with art,
ideas, each other, and the world around them. The
Museum features the world’s foremost display of
California art and is renowned for its holdings of
master drawings. Other major collection areas
include international ceramics, European
paintings, and Asian, African, and Oceanic art.

The Museum serves as the primary regional
resource for the study and appreciation of fine art
and offers a diverse spectrum of exhibitions,
events, and programs to augment its collections,
including films, concerts, studio classes, lectures,
children’s activities, and more.

247
FY2025/26 Proposed Budget

• Entertainment Services: The Entertainment Services Division consolidates all entertainment -related permitting (film, special
events, and entertainment venue permits) into a
single division. The division serves as a single
point of entry for applicants producing
entertainment activities in the City of Sacramento,
ensuring that the entertainment is safe while trying
to minimize the impacts to the overall community.

In addition to permitting, the division works to
attract people to produce and engage in
entertainment across the entire city. Collectively
these entertainment activities add to the diversity
of Sacramento’s cultural portfolio, encourage
residents and visitors to gather socially, and
stimulate the local economy.

• Fairytale Town: At Fairytale Town, children and families enjoy a magical, safe place to imagine, play, and learn.

This nonprofit storybook park and education
center promotes the imagination, creativity, and
education of children. More than 250,000 visitors
laugh and learn in a typical year
at this
Sacramento icon, and 7,500 youth benefit from
hands-on exploration at its satellite Sacramento
Adventure Playground located in South
Sacramento.

• History: The Center for Sacramento History (CSH) is the official repository and research center for City and
County historical collections. The Center collects,
organizes, and preserves the region’s vast cultural
heritage, and makes it available to the public,
academics, students, genealogists, filmmakers,
and more. The division also serves as the
administrator for the Old Sacramento Riverfront
Historic District, which is the City’s largest tourist
attraction.

Center staff creates interpretive
materials and displays for the district and creates
original programs and events in Old Sacramento,
including the annual Day of the Dead event in
October every year. The Center’s collections are
displayed in exhibitions created by Center staff at
City Hall and other locations in the City.

• Museum of Science and
Curiosity:

The SMUD Museum of Science and Curiosity
(MOSAC) is a premier institution for informal
science education for people of all ages in
248
FY2025/26 Proposed Budget

Sacramento and the Northern California Region.

The Museum piques curiosity and sparks
imagination with hands-on interactive exhibits and
programming that explore the wonders of science,
technology, engineering, the arts, and math. The
new state -of-the-art
exhibits address vital global
issues presented through a local lens, with topics
relating to sustainability/energy, water, nature,
space, design engineering, and early learning.

The entertaining science demonstrations bring
science to life with live presen ters. The digital
dome theater screens films and other digital
content, and hosts live star shows created by our
planetarium staff. The museum and its ever -
changing programming will continually bring new
experiences and ideas to the Sacramento region.

• Office of Arts and Culture: The City of Sacramento’s Office of Arts and Culture (OAC) is the City’s chief point of interface
with the creative community. OAC is dedicated to
supporting, promoting, and advancing arts,
culture, and creativity throughout Sacramento.

Together with other city and civic partners, OAC is
developing a vibrant and just creative economy ,
with Creative Edge: Sacramento’s Arts, Culture
and Creative Economy Plan as its guiding policy
framework. OAC is responsible for creative
economy grantmaking and educational
programming, as well as the City’s Art in Public
Places program , Poet Laureate program,
Emerging Curators Fellowships, and citywide
cultural tourism initiatives. OAC serves as a
source of information on the state and impact of
the creative economy.

• Sacramento History
Museum:

The Sacramento History Museum is dedicated to
sharing and making accessible, the stories of
Sacramento’s rich and diverse communities . The
Museum explores the stories of the area’s first
inhabitants, from the Indigenous peoples who
originally lived here, to the thousands of
immigrants who came from around the world to
seek their fortune in California’s gold fields,
creating the “indomitable city”. With engaging
educational programs serving thousands of
students each year, public programming and tours
of The Old Sacramento Waterfront District,
249
FY2025/26 Proposed Budget

innovative social media, and immersive exhibits,
the Museum brings the history of Sacramento’s
people, places and events to life for over 50,000
visitors each year.

• Sacramento Zoo: The Sacramento Zoo is one of the region's top attractions, with an annual attendance of more
than 500,000. The Zoo's collection consists of
more than 400 animals, diverse botanical life, and
several specialized gardens.

• SAFE Credit Union
Convention and
Performing Arts District:

Located in the heart of downtown, the SAFE Credit
Union Convention and Performing Arts District
includes the SAFE Credit Union Convention
Center, SAFE Credit Union Performing Arts
Center, and Memorial Auditorium. This district is
the venue for a variety of events including major
conventions, trade shows, sporting events,
seminars, performing arts, concerts, comedy,
commencements, weddings, and galas.

PROGRAMS/SERVICE HIGHLIGHTS

• The SAFE Credit Union Convention Center, SAFE Credit Union Performing Arts Center, and Memorial Auditorium collectively hosted 380 events and performances, served 843,754 attendees, and contributed over $165 million in economic impact to the Sacramento Region. SodexoLive!, our exclusive in-house food and beverage provider, donated over 16,000 pounds of food to the “Works of Mercy” Homeless Outreach program, which is distributed throughout the Sacramento region.

• Last fall, the Center for Sacramento History produced an exhibition in partnership with Mark Twain Elementary School with support from the Office of Mayor Pro Tempore Eric Guerra. The fifth and sixth grade students at Tallac Village’s Mark Twain Elementary School considered the relationship between their family history and the objects that surround them. The students each selected an object and wrote about its significance. These objects are presented with label text written by the students themselves. Special thanks to Principal Dominic Campos, Fifth Grade Teacher Jason Hartin, and Sixth Grade Teacher Christine Plumb-Hanifen.

• A partnership with the nonprofit Sol Collective yielded a Dia de los Muertos (Day of the Dead) celebration in Old Sacramento, bringing over 2,000 visitors to Old Sacramento for the one -day event. A partnership with the Sacramento County Office of Education served 226 students through the National History Day competition. The annual Archives Crawl invited over 300 attendees to engage with exhibitions of original historical resources. The Center’s His tory of Racism film series continues to be used in schools and universities throughout California. 250
FY2025/26 Proposed Budget

• The Center for Sacramento History is completing its move into a new secondary storage area at McClellan Park. The new space is 16,000 square feet with compact and static shelving in and meets insurance requirements for climate control. This area will be shared with the Crocker Art Museum.

• OAC continued to advance the goals of the Creative Edge Plan. With American Rescue Plan Act (ARPA) funding, OAC awarded: $750,000 to CLTRE Club for EveryDay Creative, an eight -month program where Sacramento creative entrepreneurs and businesses access mentorship, training, storefront access, and direct financial support; $410,000 in Creative Venues Grant funding to 22 local independent venues throughout Sacramento, providing aid to impacted industries and supporting economic recovery; and $250,000 to Solving Sacramento for an Arts Journalism Grant , including goals to increase public awareness and engagement with arts and cultural activities, tell the story of the city’s creative economy, and promote diversity in journalism. From 2022 through 2024, with General Funds and funding from Sacramento County, OAC awarded $2.7 million in multi-year general operating support to 67 organizational Cultural Arts Award recipients throughout the County. Art in Public Places oversaw the completion of several significant projects, including public art works and wayfinding installations along Del Rio Trail, and Hanami Line artwork at Robert T. Matsui Waterfront Park.

With several community partners, OAC celebrated the completion of Florin Road Community Beautification Project, a placemaking initiative funded through a $1.2 million CalTrans Clean California Grant which supported 3,426 square feet of murals, 26 large metal sculptures, 37 banners designed by area youth, and landscaping, clean-up, engagement activities.

• The City’s nonprofit partners collectively welcomed hundreds of thousands of visitors, supported school outreach and out of school programs for thousands of youth, and developed new programs, exhibits, and activities to make programming more accessible and reflective of the City’s rich diversity of residents. o The Crocker Art Museum served more than 181,000 community members in FY2023/24 including 24,339 individuals through sponsored free admission programs. The Museum hosted two free family festivals—For the People/By the People: A Printmaking Festival at Southside Park and the Black History Month Festival at the Crocker —which engaged 3,600 youth and adults with enriching performances, art activities, and community building experiences. The Art Ark, the Crocker's mobile art education center, visited 18 regional schools and inspired nearly 22,000 area grade- school students. Museum curators organized ten exhibitions including the first-ever museum exhibition of AI -generated art, Black Artists in America:

From Civil Rights to the Bicentennial, and Black & Gold: Traditional and Contemporary Japanese and Chinese Ceramics. In the last year the Museum contributed to the regional creative economy by supporting 1,153 artists through acquisition of artwork and public program involvement, and showcased dozens more local arts organizations, musicians, performers, and community partners through paid programming engagements. 251
FY2025/26 Proposed Budget

o Fairytale Town welcomed over 200,000 visitors, carried out 125 educational classroom visits with live animals, and provided learning opportunities for 1,500 summer camp participants.
o SMUD Museum of Science and Curiosity had a total attendance of more than 183,000 and served more than 32,000 youth through field trips, camps, school and scout programs.
o Sacramento History Museum engaged in collaborative partnerships with local cultural groups to develop relevant community -driven exhibitions that reflect the diversity of the Sacramento region. They also offered four free public programming events and free admission days as well as participated in programs such as Museums for All, Discover & Go, and Blue Star programs which provide free admission to participants.

DEPARTMENT EFFICIENCIES

• OAC continued the development of more uniform approaches to grant and public art commissioning processes, such as improved evaluation rubrics, support for applicants, and panelists (including recruitment, intake, training, and the panel adjudication process). An internal working group continued to streamline and support the division’s overall marketing and communications strategies. Efforts to better document the division’s administrative, financial, and programmatic processes continue, while new efforts to bring clarity and efficiency to city arts - related policies and procedures have begun.

• Fairytale Town opened a new Welcome Center adding new restrooms for guests, introducing a gift shop to the park, and providing long- overdue professional office space for park staff.

• The Entertainment Services Division has worked with the Information Technology Department on creating a needs assessment for building IT tools, including a new website and online permitting portal, to provide potential applicants to go to one location to obtain information and processes on all three entertainment -related permits (film, special events, and entertainment venue permits) and to apply for them.

OBJECTIVES FOR FY2025/26

• Continue to promote the SAFE Credit Union Convention and Performing Arts District, particularly the Memorial Auditorium and Performing Arts Center, by exploring new business strategies and community partnerships that expand facility usage and contribute to neighborhood vibrancy.

• The Center for Sacramento History staff to launch a new tour program in Old Sacramento for three new tours including African Americans in Early Sacramento, Women in Early Sacramento, and Redevelop and the creation of the Old Sacramento. This is in partnership with UC Davis and Sacramento State to create 252
FY2025/26 Proposed Budget

the tours. These programs are being created as part of the Department’s plans to enhance history interpretation in the district.

• Continue to partner with the Arts, Culture, and Creative Economy Commission in addressing the goals of the Creative Edge Plan; implementing American Rescue Plan Act support for the Creative Economy; delivering projects and initiatives focused on creative entrepreneurs and small businesses, individual artists and culture bearers, arts organizations of all sizes; and support for arts journalism as well as creative venues throughout the city. OAC will explore initiatives that address arts education and life- long learning; space- related challenges for individual artists and arts organizations; and the intersection of arts, health, and wellbeing. Major projects will continue through Art in Public Places.

• Work with our nonprofit partners to advance the City’s broader race and cultural equity objectives, streamline their engagement with City offices, and further shared goals.

• Integrate the Crocker Art Museum’s new Director into the community and complete a new long-range plan.

• Fairytale Town objectives for the coming year include planning new playsets that introduce cultural influences not yet represented; widening the age range for children served via programs that appeal to older children; and strengthening ties across the com munity by outreach in multiple languages and new relationships with multicultural organizations.

• The Sacramento History Museum will continue to cultivate and engage with local cultural and history partners to illuminate community stories through exhibitions and free public programming.

BUDGET AND POSITION CHANGES

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
CCS Administration Change funding source for the New Year's Eve fireworks from General Fund to the Community
Center Fund.

Community
Center
- 125,000 -
Crocker Art Museum Increase funding for security and utility expenses for the Crocker Art Museum.

Community
Center
- 357,117 -
History Change funding source for History Division
administrative support to Old Sacramento from
General Fund and Measure U Fund to Community
Center Fund.

Measure U - (299,673) - History Change funding source for History Division
administrative support to Old Sacramento from
General Fund and Measure U Fund to Community
Center Fund.

Community
Center
- 299,673 -
History Increase funding for the activation support for Old Sacramento in the History Division Budget under the
Community Center Fund.

Community
Center
- 150,000 -
253
FY2025/26 Proposed Budget

BUDGET AND POSITION CHANGES (continued)

Department Budget Summary

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
SAFE Credit Union
Convention and
Performing Arts
District
Delete one position (1.0 FTE - Events Duty Person)
and add five positions (five 0.20 FTE - Events Duty
Person).

Community
Center
- - -
SAFE Credit Union
Convention and
Performing Arts
District
Delete three positions (3.0 FTE - Events Associate)
and add 30 positions (thirty 0.10 FTE - Events
Associate).

Community
Center
- 12 -
Various Change funding source for eligible costs for visitor- serving facilities from General Fund and Measure U
Fund to the Community Center Fund.

Measure U - (347,044) (2.00) Various Change funding source for eligible costs for visitor- serving facilities from General Fund and Measure U
Fund to the Community Center Fund.

Community
Center
- 347,430 2.00
Total Change - 632,515 - Change
Convention and Cultural Services FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Propose d/Amended Employee Services $ 9,345,950 $ 10,825,433 $ 14,467,078 $ 14,467,078 $ 14,990,363 $ 523,285 Other Services and Supplies 10,379,483 10,692,489 11,607,769 11,607,769 13,690,036 2,082,267 City Property 77,455 16,638 69,000 69,000 56,000 (13,000) Multi-Year Operating Projects - - 1,528,000 1,464,000 1,464,000 - Transfers (56,278) (122,037) - - 42,750 42,750
Labor and Supply Offset 1,633,936 1,501,193 1,933,084 1,933,084 3,337,510 1,404,426 Operating Transfers 3,070,274 2,847,625 2,162,500 2,162,500 2,588,766 426,266 Total $ 24,450,820 $ 25,761,342 $ 31,767,431 $ 31,703,431 $ 36,169,425 $ 4,465,994 Change
FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Propose d/Amended General Fund $ (4,799,908) $ 1,092,622 $ 796,808 $ 796,808 $ 809,808 $ 13,000 Innovation and Grow th - - 850,000 850,000 850,000 -
Old Sacto Maint Dist 67,220 66,715 66,719 66,719 66,731 12 Measure U 3,653,275 4,718,880 4,167,868 4,167,868 3,597,028 (570,840) Old Sac Market 85,219 58,693 104,000 104,000 104,000 -
H Street Theater 65,855 16,205 45,000 45,000 45,000 -
Zoo 84,865 79,687 50,000 50,000 50,000 -
Fairytale Tow n 84,865 79,687 50,000 50,000 50,000 -
Winchester G & Mary Alice Felt 85,000 92,493 85,000 85,000 48,699 (36,301) Community Center 25,124,428 19,556,361 25,552,036 25,488,036 30,548,159 5,060,123 Total $ 24,450,820 $ 25,761,342 $ 31,767,431 $ 31,703,431 $ 36,169,425 $ 4,465,994 254
FY2025/26 Proposed Budget

Division Budget Summary

Staffing Levels

MEASURE U

The following chart summarizes the Department’s Measure U programs:

Change
Convention and Cultural Services FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended CCS Administration Division $ 2,109,695 $ 1,644,465 $ 2,205,409 $ 2,205,409 $ 2,446,604 $ 241,195 SA FE CU Conv. & Perf . A rts Dist. Division 15,998,198 17,696,481 20,562,430 20,498,430 24,091,254 3,592,824 Crocker Art Museum Division 2,298,352 2,214,238 2,413,360 2,413,360 2,662,361 249,001 Fairytale Tow n Division 99,793 96,516 62,245 62,245 62,245 - History Division 2,570,895 2,704,153 2,753,030 2,753,030 3,071,340 318,310 Sacramento Office of Arts and Culture Division 714,050 731,584 2,100,718 2,100,718 2,111,277 10,559 Pow erhouse Science Center Division 145,337 145,337 145,337 145,337 145,337 - Sacramento History Museum Division 143,595 149,828 143,528 143,528 143,528 - Sacramento Zoo Division 370,906 378,741 356,401 356,401 357,001 600 Entertainment Services Division - - 1,024,973 1,024,973 1,078,478 53,505 Total $ 24,450,820 $ 25,761,342 $ 31,767,431 $ 31,703,431 $ 36,169,425 $ 4,465,994 Change
Convention and Cultural Services FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended CCS Administration Division 8.00 8.00 9.50 9.50 9.50 -
SA FE CU Conv. & Perf . A rts Dist. Division 90.05 86.05 84.05 84.05 84.05 - Crocker Art Museum Division 5.00 5.00 5.00 5.00 5.00 -
History Division 8.95 8.95 8.95 8.95 8.95 -
Sacramento Office of Arts and Culture Division 9.00 9.00 8.00 8.00 8.00 - Sacramento Zoo Division 2.00 2.00 2.00 2.00 2.00 -
Entertainment Services Division - - 7.00 7.00 7.00 -
Total 123.00 119.00 124.50 124.50 124.50 -
Funding Category Program Name FTE
FY2025/26
Proposed
Arts/Creative Edge
MYOP Cultural Arts Awards - 614,000
Operations Art in Public Places 3.00 (25)
Arts Education and Outreach 1.00 98,539
Creative Economy and Grants 2.00 231,934
Entertainment Services Division 7.00 1,058,478
History 8.95 1,277,273
Office of Arts and Culture Admin 2.00 316,829
Grand Total 23.95 3,597,028$
255
FY2025/26 Proposed Budget

PERFORMANCE MEASURES

Convention Center Complex Division

The SAFE Credit Union Convention and Performing Arts District provides both ticketed and free events to the public. It is hom e to local arts groups Broadway Sacramento, Sacramento Ballet, Sacramento Choral Society and Orchestra, Sacramento Philharmonic and Opera and Sacramento Speaker Series. The Performing Arts Center has played host to touring shows such as Wicked, Frozen and Hadestown; concerts such as Bonnie Raitt and John Mellencamp; comedians such as David Spade, Fortune Feimster and Brett Goldstein; and speakers such as Malala Yousafzi and Dr. Anthony Fauci.

The SAFE Credit Union Convention Center has followed the industry’s best practices in securing contracts with in- house service providers. Currently, the City has contracts with Sodexo Live! as the exclusive food and beverage services provider, Encore as the preferred audio- visual services provider and exclusive rigging services provider and Smart City Networks as the exclusive telecommunications service provider.

Crocker Art Museum Division

The Crocker Art Museum serves as a regional hub of art and culture and offers a diverse spectrum of exhibitions, events, and programs to augment its world-class collections. Public programs include free family festivals, films, concerts, studio classes, lectures, children’s activities, and more. Attendance figures reflect the exhibition and programmatic schedule. The Museum continues to work to rebuild attendance and membership loss following COVID-19 closures. We are currently pacing to surpass FY25 estimated attendance.

Center for Sacramento History Division

The Center for Sacramento History (CSH) holds original, historical public records from the City and County. These records are an essential resource for accurate information about the Sacramento region’s past and play a key role in reflecting the development of our city and our legal system. We provide access to these records in -person and virtually to the public and researchers of all types, including students, genealogists, and historians. They use these records for their own personal research, for academic study, for environmental and preservation purposes, to publish books and papers, and to produce films and television series. Over the last 10 years, we have dramatically increased access to our collections by placing collection guides and digitized material on the Online Archive of California and Archive.org, both national databases that have opened us to an ever-growing audience. By providing prompt and accurate research and response, CSH has facilitated the use of Sacramento film and photographic collections in both mainstream and independent films shown on HBO, CNN, NBC, Netflix, and local news agencies, serving to raise the profile of our city nationally and internationally. CSH responds to research requests virtually, and in- person research. Thanks to the increase in CSH materials and collection guides available online, our public usage continues to increase.

The Center for Sacramento History’s inventory consists of the following types of catalogued items: artifacts; photographs; government, business, and organizational records; personal and family manuscripts; audio, film, and video; and digital objects. These all tell the story of the Sacramento region. Each year we increase the amount of collection material available online. Following the reopening of the Center as the pandemic eases, we can utilize the work of students and volunteers again to digitize at a more consistent rate. Now, FY22 FY23 FY24 FY2 5 FY26
K ey Measure Actuals Actuals Act uals E stimate Target
Total events and performances 174 393 380 402 425
Number of tickets sold 119,624 129,766 237,409 249,300 265, 000 FY22 FY23 FY24 FY25 FY26
K ey Measure Actuals Actuals Actuals E stimate Target
Total revenue of in-house vendors $8,218,022 12,908,515 14,705,193 15,440,452 $16,212,475 FY22 FY23 FY24 FY2 5 FY26
Key Measure Actuals Actuals Ac tuals Estimate Target
Attendance 147,256 187,324 181,475 200,000 210, 000
Membership 12,380 12,253 11,864 12,115 12, 500
FY22 FY23 FY24 FY25 FY26
Key Measure Actuals Actuals Actuals Estimate Target
Number of Researcher Interactions (In Person, Online,
By N/A 665 750 820 800
Number of Users Accessing Online Records 147,962 207,398 325,219 375,000 400,000 FY22 FY23 FY24 FY25 FY26
Key Measure Actuals Actuals Actuals Estimate Target
Number of items listed in collection's databases 130,377 132,515 154,393 177,056 185,000 256
FY2025/26 Proposed Budget

thanks to a grant from the County, we can digitize our extensive television film collection in-house with new digitization equipment and students to complete the work.

Entertainment Services Division
Film and Media

Sacramento Film + Media carries out film permitting, promotes the City as a filmmaking destination, and serves as a general resource for, and a driver of, film and media industry development in the City of Sacramento. Sacramento Film + Media measures its progress through the number of film permits, hotel nights and extended stays, local hires and film production spend in the City.

Office of Arts and Culture Division
Public Art Program

The Art in Public Places program is funded through an ordinance that requires at least two percent of eligible City and County capital improvement project budgets be set aside for public art. Several of the objects in the City and County public art collection have been recognized nationally. The number of projects in progress may vary significantly year-to-year based on funding for new construction.

Project timelines are generally multi-year and undergo an extensive public process of artist selection, community input, and oversight by Arts Commission staff. Gallery exhibitions are also produced as part of the program. The City and County public art collection includes more than 675 objects. Public artworks that are maintained or conserved year-to-year may vary due to funding and/or project complexity.

Any Given Child Program

A program developed by the John F. Kennedy Center for Performing Arts, Any Given Child, provides equitable access to arts education experiences for K -8 students during the school day. Services offered under the program include in- class arts residencies, school assemblies delivered by local arts organizations, and professional development workshops for teachers, school administrators, and artists. The structure of the fees-for-service menu distributed to participating school districts changed. Districts now purchase a specific number of Teaching Artist Residencies, Arts Exposure Events (assemblies), and seats at Professional Development workshops, to be used throughout the year.

FY22 FY23 FY24 FY25 FY26
Key Measure Actuals Actuals Actuals Estimate Target
Number of Permits Issued 82 73 80 100 120
Number of Film Days 176 159 143 160 180
Total Amount of Production Company Spending in
Sacramento $2,735,645 $2,005,342 $6,469,485 $3,000,000 $3,500,000 Number of Local Hires 729 411 929 600 700
Number of Hotel Nights 637 836 4,347 850 900
FY22 FY23 FY24 FY2 5 FY26
Key Measure Actuals Actuals Ac tuals E stimate Target
Number of exhibitions produced 4 4 4 4 4
Number of artw orks conserved, maintained, or repaired 10 10 8 7 5 Number of public art projects completed (installed) 21 2 20 5 5 Number of permanent public art projects in progress 21 21 20 17 5 Special events, w orkshops, lectures 15 10 10 10 10
FY22 FY23 FY24 FY25 FY26
Key Measure Actuals Actuals Actuals E stimate Target
Number of arts education school assemblies organized 14 50 148 98 120 Number of participants reached through above events 4,250 17,500 32,500 24,000 26,000 Number of professional development events for artists
and classroom teachers 4 6 8 10 12
Number of artists and classroom teachers served in
professional development 83 61 220 100 150
Number of students served in six- or 10-w eek residences 1,200 3,710 4,320 4,060 4,000 257
FY2025/26 Proposed Budget
Cultural Arts Awards (CAA) Program
The Cultural Arts Awards (CAA) grants program offers general operating support for nonprofit arts and cultural organizations. The CAA grant is funded by both the County and City of Sacramento. Data on in-person attendance, digital attendance, total expenditures and total paid positions comes from SMU Data Arts through the Cultural Data Project profile that organizations complete annually.

FY22 FY23 FY24 FY25 FY26
Key Measure Actuals Actuals Actuals Estimate Target
Number of Cultural Arts Aw ard (CAA) grantees 69 66 64 63 75 CAA grant allocation $950,000 $933,905 $902,164 $895,828 $950,000 In Person Attendance 1,189,134 1,466,952
Not yet
available
Not yet
available
Not yet
available
Digital Attendance 660,931 690,702
Not yet
available
Not yet
available
Not yet
available
Total Expenditures $144,544,996 $123,259,317
Not yet
available
Not yet
available
Not yet
available
Total Paid Positions (FT, PT, Independent Contractors) 3,543 3,559 Not yet
available
Not yet
available
Not yet
available
258
FY2025/26 Proposed Budget

17 SECTION - 17
Finance

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FY2025/26 Proposed Budget

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FY2025/26 Proposed Budget

Finance
The mission of the Finance Department is to educate, inform, and provide excellent internal and external customer service with integrity, efficiency, and quality.

The Finance Department is responsible for overseeing the financial management of the City. The Department currently provides accounting, billing, budgeting, collection, infrastructure finance, parking citation, payroll, procurement, and revenue collection services. Internal services and programs include strategic planning and policy analysis.

• Accounting: Responsible for providing oversight for the system of internal controls to safeguard City assets and
preparing annual financial statements.
• Budget, Policy, and
Strategic Planning:

Responsible for the development and preparation
of the annual operating budget, five- year capital
improvement program, midyear budget report, and
quarterly financial reports. Supports the Council,
charter offices, and operating departments with
budgeting, financial support, forecasting, analysis
on special projects, and labor negotiations.
• Infrastructure Finance: Responsible for the formation and management of financing plans, assessment districts, tax districts,
infrastructure financing districts, and fee districts for development and the continuance of services in
support of goals to achieve sustainability and
enhance livability.
• Office of the Director: Responsible for enhancing and maintaining the fiscal stability of the city.
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FY2025/26 Proposed Budget

• Payroll: Responsible for issuing bi -weekly paychecks for active employees, monthly paychecks for SCERS
retirees and for maintaining and monitoring internal
controls to ensure transactions comply with current
labor agreements, payroll policies, and state and
federal laws and regulations.
• Procurement Services: Responsible for the development, implementation, and compliance with citywide policies for the
acquisition of goods and services through
competitive bidding, as well as contract and
purchase order administration.
• Revenue: Responsible for the coordination and collection of citywide citations, fees, permits, and fees and taxes
for the administration of the Business Operation
Tax (BOT) and special business permit programs
for over 22,000 businesses.

• Office of Cannabis
Management (OCM):

OCM coordinates cannabis -related policy,
administrative procedures, and community
outreach by managing the permitting process,
coordinating across departments to ensure the safe
and legal operation of cannabis in the City, and
managing the local cannabis social equity program
(also known as CORE).

PROGRAMS/SERVICE HIGHLIGHTS
• Led the Citywide budget development process.
• Updated the Capital Improvement Program to incorporate unfunded capital and deferred maintenance needs, which is best practice.
• Maintained full functionality and customer service levels, fast turnaround times for purchase order dispatching, and prompt payments to employees and vendors. • Managed $ 64 million of special district revenue to construct and maintain infrastructure, support business districts, and increase tourism within the city and supported OIED in the expansion of the Railyards EIFD.
• Completed implementation of the new citywide point -of-sale (POS) cashiering system that will accept payments for most services, programs, fees, and charges.

City Departments that collect revenue using in-person or online payments utilize a variety of software applications that impact cashiering operations. This system will streamline the process and ensure transactions are recorded properly in the citywide financial system.

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FY2025/26 Proposed Budget

• Conducted an in-house fee study for special business permit fees managed by the Revenue division, ensuring full cost recovery of the permit programs.

• Issued over 130,000 payments to employees and retirees.

• Awarded over $1.1 million in grants to CORE cannabis businesses.

DEPARTMENT EFFICIENCIES
• Implementation of an online appointment scheduling application for cashiering appointments and cannabis business tax payments.
• Executed the first holistic update to the procurement code in over a decade, creating citywide efficiencies.
• Developed and implemented ordinance to collect Sacramento Tourism and Marketing District fees directly from short-term rental platforms ensuring collection and reducing administration for short-term rental operators. • Optimized the use of districts and finance plans to build priority public improvements, fund services, and encourage private investment in the City. • Streamlined internal procurement processes and procedures using best practices to eliminate redundancies, increase staff effectiveness, and improve transparency. • Scanned and indexed images of cash receipts, allowing City staff to access electronic images of cash receipt documentation
• Implemented an appointment scheduling process for customers requesting payment plans for parking citations, increasing efficiency of customer experience at the public counter.

OBJECTIVES FOR FY2025/26
• Establish financing structures to facilitate development of Innovation Park (former Sleeptrain Arena site), the Sacramento Valley Station Master Plan area, the Railyards, the Panhandle, Delta Shores, and the Airport South Industrial project. • Implement new accounting and financial reporting standards including Governmental Accounting Standards Board (GASB) Statements No. 101 – Compensated Absences.
• Completing the Annual Comprehensive Report, Sacramento City Employee’s Retirement System Report, Measure U Sales Tax Performance Report, Transportation Development Act Report, Independent Accountant’s Report on Applying Agreed- Upon Procedures Related to the Article XIII- B Appropriations Limit Calculation Report and Single Audit Report with no audit adjustments and/or material findings from external auditors.
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FY2025/26 Proposed Budget

• Provide departments and fund managers with the tools necessary to forecast labor growth, especially as it relates to retirement and other post -employment benefit costs.
• Provide departments with the necessary resources to streamline procurement functions. In addition, complete research to improve citywide processes and ultimately create efficiencies and initiate money saving strategies. • Automate retro pay process in eCAPS HCM to eliminate manual review and process retro pay to employees in a timely manner.
• Transition from mailing documents such as account statements and invoices to electronic delivery, encouraging sustainability and efficient payment processing. • Implement a web module for the City -wide cashiering system, increasing online payment access for customers.

REORGANIZATION
• As part of the FY2025/26 Budget, the Office of Cannabis Management consisting of

9.0 FTE positions and associated budgets were moved from the City Manager’s Office to the Finance Department.

BUDGET AND POSITION CHANGES

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Accounting Delete one position (1.0 FTE - Financial Services Supervisor) and add one position (1.0 FTE - Administrative Analyst). The new position better suits the duties currently performe
d and needed.

General Fund (51,139) 6,704 -
Accounting Decrease revenue budget for Escheat to estimated actuals.

The budget has been overstated for this revenue source.

General Fund 67,000 - -
Infrastructure Finance Remove the Innovation and Growth Fund offset for the Senior Development Project Manager Position in the
Infrastructure Finance Division. This is related to a
reduction strategy in the City Manage
r's Office.

General Fund - 175,572 -
Infrastructure Finance Remove the Innovation and Growth Fund offset for the Senior Development Project Manager Position in the
Infrastructure Finance Division. This is related to a
reduction strategy in the City Manager'
s Office.

Innovation and
Growth
- (175,572) -
Office of Cannabis
Management
Decrease funding for the Cannabis multi-year operating
project (MYOP). Contribution to the MYOP will have
minimal impact on cannabis programming.

General Fund - (2,018,300) -
Revenue Delete two positions (2.0 FTE - Customer Service Representative) and add one position (1.0 FTE Program
Specialist). This change will consolidate all tax programs within
the Permits and Taxes group, streamline process
among all the programs, and create administrative
efficiencies.

General Fund - (17,786) (1.00)
Revenue Add one position (1.0 FTE - Customer Service
Representative) and establish offset. This is related to the Public Works' modified Residential Permit Parking program fee incr
ease.

General Fund - 60 1.00
Total Change 15,861 (2,029, 322) -
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FY2025/26 Proposed Budget

Department Budget Summary

Change
Finance FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 12,219,902 $ 13,343,824 $ 13,762,241 $ 13,762,241 $ 15,663,378 $ 1,901,137 Other Services and Supplies 1,407,754 1,248,012 2,482,016 2,572,761 2,979,034 406,273 City Property 41,199 25,724 44,400 44,400 49,400 5,000
Multi-Year Operating Projects - - 2,885,000 2,885,000 8,733,000 5,848,000 Transfers 61,909 75,288 64,003 64,003 (666,691) (730,694) Labor and Supply Offset (1,116,172) (1,001,467) (1,314,101) (1,314,101) (1,400,746) (86,645) Total $ 12,614,592 $ 13,691,381 $ 17,923,559 $ 18,014,304 $ 25,357,375 $ 7,343,071 Change
FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $ 8,224,507 $ 9,044,055 $ 10,314,831 $ 10,405,576 $ 11,665,977 $ 1,260,401 Interdepartmental Service 2,840,770 2,818,449 2,864,296 2,864,296 3,010,948 146,652 So Natomas Facility Benefit 17,095 3,858 - - - -
Innovation and Grow th - 175,572 175,572 175,572 175,572 - Pow er Inn Rd Md 2003-01 3,565 1,169 1,179 1,179 1,196 17 Neighborhood Lighting Dist 10,869 3,370 3,455 3,455 3,516 61 Northside Subdiv Maint Dist 5,288 1,651 1,683 1,683 1,712 29 Subdiv Lndscpng Maint Dist 28,622 13,827 14,270 14,270 14,809 539 Laguna Creek Maint Dist 8,028 5,862 6,013 6,013 6,189 176 12th Street Maint Benefit Area 2,937 1,693 1,693 1,693 1,728 35 Old Sacto Maint Dist 2,840 3,345 3,341 3,341 3,329 (12) Franklin Blvd PBID 79,141 31,726 - - - -
Stockton Blvd BIA 37,139 19,959 - - - -
Oak Par k PBID 2,778 2,741 2,757 2,757 2,767 10
Franklin Boulevard PBID 2,738 2,709 2,720 2,720 2,729 9 Del Paso Prop & Business Imprv 2,828 2,781 2,804 2,804 2,815 11 Special District Info/Rpt Sys 4,336 11,788 - - - -
Dow ntow n Management District 3,450 3,380 3,418 3,418 3,433 15 The River District PBID 2,947 2,879 2,917 2,917 2,954 37 N Natomas Transp Mgmt Assoc 46,381 47,050 49,137 49,137 51,942 2,805 Stockton Blvd PBID 2,779 2,771 2,792 2,792 2,802 10
Neighborhood Water Quality Dist 10,373 4,270 4,428 4,428 4,559 131 N Nat Lndscp 99-02 29,556 20,764 22,535 22,535 25,332 2,797 Willow creek Assmnt Md 6,590 4,080 4,283 4,283 4,458 175 Willow creek Lndscpng CFD 5,733 5,430 5,645 5,645 5,776 131 N Natomas Lands CFD 3 55,672 68,545 72,136 72,136 74,238 2,102 Village Garden N.-Mtce Dist #1 6,663 1,791 1,880 1,880 1,914 34 Landscaping and Lighting 349,857 503,429 520,361 520,361 535,800 15,439 Neighborhood Park Maint CFD 46,996 52,048 54,883 54,883 58,161 3,278 Pow er Inn Area Prop & Business 3,321 3,194 3,281 3,281 3,307 26 Greater Broadw ay PBID 2,857 2,839 2,870 2,870 2,883 13 Midtow n Sacramento PBID 3,640 3,534 3,597 3,597 3,616 19 Del Paso Nuevo Landscaping CFD 3,086 2,041 2,057 2,057 2,061 4 Sutter Business Imprvmt Area 158,900 143,941 220,000 220,000 242,000 22,000 Handle BID No 2011-04 239,516 318,039 256,555 256,555 281,834 25,279 Mack Road PBID 2,755 2,715 2,726 2,726 2,736 10
Sac Tourism Marketing District 152,197 171,071 72,908 72,908 72,908 - Natomas Crossing CFD 2013-01 866 2,076 2,094 2,094 23,643 21,549 NW Land Park CFD 2013-02 10,027 5,711 6,211 6,211 6,465 254 Tow nship 9 CFD No. 2012-06 10,143 2,382 1,751 1,751 2,371 620 Railyards Maint CFD No 2014-04 8,205 6,539 5,748 5,748 7,444 1,696 Parkebridge CFD 2014-07 9,125 7,238 5,577 5,577 6,089 512 265
FY2025/26 Proposed Budget

Department Budget Summary (continued)

Division Budget Summary

Staffing Levels

Change
FY2022/23 FY2023/24 FY2024/25 FY 2024/25 FY2025/26 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Ap proved Amended Proposed Proposed/Amended SacMaintCFD2014-04 Annex Areas 19,300 9,607 10,855 10,855 10,998 143 SacMaintCFD2014-04 Area 01 16,820 5,613 7,775 7,775 7,963 188 Central Midtow n Restaurant BID 70,189 85,694 244,854 244,854 269,080 24,226 Curtis Park CFD 2013-03 3,241 2,039 2,089 2,089 2,122 33 16th St PBID 2,690 2,669 2,673 2,673 2,681 8
Sac Services CFD 2018-05 9,866 7,415 6,909 6,909 9,518 2,609 Aggie Square EIFD - - - - 948,000 948,000
2006 CIRB - Tax Exempt 350 - - - - -
Jacinto Creek - - - - 25,000 25,000
NNFP Drainage Fee - - 400,000 400,000 525,000 125, 000
NNFP Public Facilities Fee - - 150,000 150,000 4,760, 000 4,610,000 NNFP Transit Fee - - 15,000 15,000 25,000 10, 000
NNFP Public Land Acquisition Fee - - 90,000 90,000 25,000 ( 65,000) NNFP Reg Park Land Acquisition - - 15,000 15,000 25,000 10, 000 Dow ntow n Impact Fee - - 50,000 50,000 - (50,000)
Railyards Impact Fee - - 25,000 25,000 - (25,000)
River District Impact Fee - - 125,000 125,000 - (125,000) 65th Street Area Impact Fee - - 15,000 15,000 - (15,000) Greenbriar Impact Fee 8,021 7,032 - - - -
Delta Shores PF Impact Fee - - 2,000,000 2,000,000 2,000,000 - Panhandle Impact Fee - - - - 400,000 400,000
Cty/Cnty Office-Water Planning 39,000 39,000 39,000 39,000 - ( 39,000) Total $ 12,614,592 $ 13,691,381 $ 17,923,559 $ 18,014,304 $ 25,357,375 $ 7,343,071 Change
Finance FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Accounting Division $ 2,863,661 $ 3,055,935 $ 3,476,768 $ 3,557,513 $ 3,427,696 $ (129,817) Budget Office Division 1,559,451 1,561,231 1,663,344 1,663,344 1,744,586 81,242 Office of the Director 513,592 636,763 757,965 767,965 775,277 7,312 Office of Cannabis Management Division - - - - 1,708,160 1,708,160 Revenue Division 3,717,658 4,128,864 4,671,807 4,671,807 4,836,615 164,808 Payroll Division 1,305,910 1,348,573 1,367,317 1,367,317 1,413,409 46,092 Procurement Division 1,060,346 1,225,220 1,350,154 1,350,154 1,346,920 (3,234) Infrastructure Finance Division 1,593,975 1,734,796 4,636,204 4,636,204 10,104,711 5,468,507 Total $ 12,614,592 $ 13,691,381 $ 17,923,559 $ 18,014,304 $ 25,357,375 $ 7,343,071 Change
Finance FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(L ess) Budget Summary Actuals Actuals Approved Amended Proposed Propos ed/Amended Accounting Division 20.00 20.00 20.00 20.00 20.00 -
Budget Office Division 8.00 7.00 7.00 7.00 7.00 -
Office of the Director Division 3.00 3.00 3.00 3.00 3.00 - Office of Cannabis Management Division - - - - 9.00 9.00 Revenue Division 40.90 40.90 40.00 40.00 40.00 -
Payroll Division 9.00 9.00 9.00 9.00 9.00 -
Procurement Division 7.00 8.00 8.00 8.00 8.00 -
Infrastructure Finance Division 6.00 7.00 7.00 7.00 7.00 - Total 93.90 94.90 94.00 94.00 103.00 9.00
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FY2025/26 Proposed Budget

PERFORMANCE MEASURES

Accounting Division

Review and approval of vendor payments is centralized to ensure consistency with generally accepted accounting principles and the City's procurement policies. Timely vendor payments fulfill the City's obligations relative to contract compliance and in some circumstances allow the City to take advantage of prompt payment discounts. The Accounts Payable Automation Project is expected to improve the timeliness of vendor payments.

Finance Administration Division

Delivering timely and quality financial planning and reporting documents is important to the City's goals of transparency and prudent financial management.

Procurement Division

Issuing centralized purchase orders ensures compliance with the City's procurement policies and procedures. Timely review and issuance of purchase orders is critical in fulfilling the program and service delivery needs of Departments.

FY22 FY23 FY24 FY25 FY2 6
Key Meas ure Actuals Actuals Actuals Estimate Target
Percent of vendors paid within 30 days 82% 81% 84 80 80 Number of days for Accounting to review and approve a
vendor invoice and process a payment 4 4 4 4 4
"Prompt Payment" discounts taken $82,365 $112,162 132,000 100,000 110,000 "Prompt Payment" discounts lost $39,788 $18,789 30,000 10,000 10,000 Percent of discounts taken 69% 88% 73% 90% 92%
FY22 FY23 FY24 FY25 FY26
Key Measure Actuals Actuals Actuals Estimate Target
Obtain unmodified audit opinion on Annual Comprehensive Financial Report Yes Yes Yes Yes Yes
Obtain Government Finance Officers Association Certificate of Achievement for Annual Comprehensive Financial
Report
Yes Yes Yes Yes Yes
Proposed balanced budget presented to City Council 60
days prior to the beginning of the fiscal year Yes Yes Yes Yes Yes Obtain California Society of Municipal Finance Officers Operating & Capital Budgeting Awards Yes Yes Yes Yes Yes FY22 FY23 FY24 FY25 FY26
Key Measure Actuals Actuals Actuals Estimate Target
Number of days for Procurement Services to review a
requisition and issue a purchase order 3 3 3 3 3
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FY2025/26 Proposed Budget

Sacramento City CouncilMay 13, 2025

Sacramento City Council
May 13, 2025