Fiscal Year 2025-26
Proposed Operating &
Capital Improvement Program
Budget
June 17, 2025
Proposed Operating & Capital Budgets
Staff recommends that City Council adopt resolutions approving the Fiscal Year 2025-26 Operating and Capital budgets and appropriations limit. 2FY 2025-26 Proposed Budget
Proposed Budget – Citywide
3FY 2025-26 Proposed Budget
Proposed Budget - Overview
FY 2025-26 Proposed City
Budget: $285.0 million
Total Number of Positions:
660.5
4FY 2025-26 Proposed Budget
General Funds
$ 184,287,905
65%
Other Funds
$ 71,354,175
25%
Capital Funds
$ 29,351,297
10%
Budget Highlights
5FY 2025-26 Proposed Budget
• Deputy Fire Marshal position in Fire
• 3 positions in Police
• 4 positions in Community Development
• 7 Add/Deletes (current positions deleted in place of new ones) • Increase Code Enforcement by $50,000 for a total of $335,000 • Increase rental assistance by $300,000 for a total of $500,000 • Increase Capital Improvement Program by $8,300,000 for a total of $29,351,297 (streets & sidewalk repair, Boronda Road, Abbott Street and traffic calming) Proposed Revenue - Citywide
6FY 2025-26 Proposed Budget
City-wide Proposed Revenue $240.4 million (excludes transfers in) $91.0
$43.0
$26.0 $19.7 $14.0 $13.4 $10.3 $7.6 $6.7 $4.0 $3.1 $1.6
(in millions)
Total Sources & Uses
7 Sources FY 2025-26
Revenue $240,374,177
Transfers In 57,940,817
Less Transfers In to CIP (29,351,297)
Fund Balance Used (various funds) 16,029,680
Total City-Wide Sources $284,993,377
FY 2025-26 Proposed Budget
Uses FY 2025-26
Expenditures $256,403,857
Transfers Out 57,940,817
Less Transfers Out to CIP (29,351,297)
Total City-Wide Uses $284,993,377
Proposed Budget - Citywide Fund Categories
8FY 2025-26 Proposed Budget
$2.4
$3.5
$4.7
$7.1
$14.2
$23.8
$29.4
$33.7
$39.4
$126.8
Airport
Storm Sewer
Sanitary Sewer
Permit
Internal Services
Measure E
Capital Improvement
Measure G
Other Funds
General Fund
(in millions)
Proposed Budget - City Service Area
9FY 2025-26 Proposed Budget
Excludes Reserves
Strategic Support
19,866,610
Capital Budget
29,351,297
Community Development
19,522,603
Public Safety
101,117,547 Community Services
15,588,217
Non-Departmental
66,457,691
Infrastructure Services
33,089,412
General Fund
10FY 2025-26 Proposed Budget
Proposed Budget - General Fund Sources
11 Sales & Use Tax,
$ 91,015,000 , 49%
Property Tax,
$ 41,531,000 , 23%
Franchise Fees, $ 10,181,000 , 5%
TOT, $ 3,119,000 , 2% UUT, $ 14,003,000 , 8%
Business License Tax, $ 6,718,000 , 4%
Licenses & Permits, $ 834,500 , 0%
Fines & Forfeitures, $ 280,000 , 0% Invest Earnings, $ 5,775,000 , 3% Intergovernmental, $ 1,200,000 , 1% Charges for Services, $6,342,260, 3% Other Revenue, $ 1,054,500 , 1%
Transfers In, $ 2,478,700 , 1%
FY 2025-26 Proposed Budget
Total General Fund Sources $184.5 million
Proposed Budget - General Fund Uses by Category
12 Salaries & Benefits
67%
Supplies & Services
19%
Capital
1% Operating Transfers
12%
Reserves
1%
FY 2025-26 Proposed Budget
Total General Fund Uses $187.5 million
Percentage of Salaries & Benefits relative to Budget
13FY 2025-26 Proposed Budget
FY 2024-25 & FY 2025-26 includes allocations to reserves $151,269,007
$165,514,227
$186,646,321
$176,642,831
$187,479,901
64%
64%
61% 66%
67%
-
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
180,000,000
200,000,000
FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26
Adopted GF Budget Salaries & Benefits
Proposed Budget - General Fund by Department
14FY 2025-26 Proposed Budget
City Council
City Attorney
Human Resources
Administration
Community Development
Finance
Public Works
Library & Comm Services
Fire
Police
$- $20 $40 $60 $80
MILLIONS
Capital Improvement Program (CIP)
15 Category FY 2025-26
Airport Improvements $145,000
Community Development (Permit Technology) 389,000
Downtown Parking 100,000
Engineering & Transportation 11,131,097
Facilities Maintenance 450,000
Fire Station Improvements 350,000
Industrial Waste 65,000
Storm Sewer (NPDES) 1,195,200
Street Maintenance 14,225,000
Traffic Signals 620,000
Urban Forestry (includes Assessment Districts) 681,000
Total $29,351,297
FY 2025-26 Proposed Budget
Additional CIP includes $117.1 million in carryover and $12.4 million in ARPA CIP Investment Summary
16FY 2025-26 Proposed Budget
FY 2024-25
Adopted
FY 2025-26
Proposed % Increase
Total CIP $18,234,000 $29,351,297 61%
Streets & Sidewalks 8,025,000 17,125,000 113%
Reserves
17 • Economic Contingency: $22,114,549
• Infrastructure Maintenance: $4,600,000
• Facilities Maintenance: $1,500,000
• OPEB: $10,000,000
FY 2025-26 Proposed Budget
Total Reserves $38.2 million, 20.7% of General Fund Budget Questions?