GENERAL FUND
MID-YEAR BUDGET UPDATE &
5-YEAR FORECAST
NICK PEGUEROS
CHIEF FINANCIAL OFFICER
CITY COUNCIL
MARCH 11, 2025
Consider a Resolution Amending the Fiscal Year 2024-
25 (FY25) Budget
Receive updated General Fund forecast for
consideration during the FY26 operating budget
deliberations.
2 OBJECTIVE
MID-YEAR BUDGET UPDATE
3 GENERAL FUND
$67.12 MILLION ADOPTED BUDGET
$0.6 MILLION ESTIMATED SURPLUS
Revenues
• $3.6 million lower:
• Taxes
• Parking fines
• VLF in-lieu (at risk)
Expenditures
• $4.2 million lower:
• Personnel
• Operating budgets
4 PARKING FUND
Notes:
• FY25: July 1st to Feb 28th
• Citation estimates
• Personnel & overhead
charges
• Loan repayment tentative
• Operating deficit of $0.02
million; ~2% of revenue
5 BUDGET AMENDMENT REQUESTS
6 5-YEAR FORECAST
7 Maintain FY25 service levels
Growth factors
Revenue 2-5%
Expenditure 3.5-7%
Incorporate known and anticipated events
Major housing and commercial developments
Measure Q
CityNet sale
No substantial one-time revenues/expenditures
8 5-YEAR FORECAST ASSUMPTIONS
9 GENERAL FUND RESOURCES
HISTORICAL
• Resources by category
• Resources include
revenues and transfers in
• Creation of two SRFs in
FY25: RAC and CD
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
2022 2023 2024 2025 2026 2027 2028 2029 2030
Transfers in
Other Revenue
Use of Money and
Property
Fines and Forfeitures
Intergovernmental
Licenses and Permits
Charges for Services
Taxes
10 GENERAL FUND RESOURCES
5-YEAR FORECAST
• Resources by category
• Resources include
revenues and transfers in
• Creation of two SRFs in
FY25: RAC and CD
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
2022 2023 2024 2025 2026 2027 2028 2029 2030
Transfers in
Other Revenue
Use of Money and
Property
Fines and Forfeitures
Intergovernmental
Licenses and Permits
Charges for Services
Taxes
11 GENERAL FUND REQUIREMENTS
HISTORICAL
• Requirements by Activity
Type
• Requirements include
expenditures and transfers
out
• ISF, Admin OH, UAL
changes in FY25
-$10
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
2022 2023 2024 2025 2026 2027 2028 2029 2030
Transfers Out
Non-Departmental
Community Services
Public Works
Community Development
Fire
Police
Administrative Services
City Attorney
City Manager's Office
City Council
12 GENERAL FUND REQUIREMENTS
5-YEAR FORECAST
• Requirements by Activity
Type
• Requirements include
expenditures and transfers
out
• ISF, Admin OH, UAL
changes in FY25
-$10
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
2022 2023 2024 2025 2026 2027 2028 2029 2030
Transfers Out
Non-Departmental
Community Services
Public Works
Community Development
Fire
Police
Administrative Services
City Attorney
City Manager's Office
City Council
13 NET OPERATING REVENUE
• Resources minus
Requirements
• Structural deficit
of increasing over
forecast period
• 1.8% in FY26
• 5.2% in FY30
-$6
-$4
-$2
$0
$2
$4
$6
Resources Over (Under) Requirements
Adopt a Resolution Amending the Fiscal Year 2024-25
(FY25) Budget
14 Recommendation
QUESTIONS
15 2024 MEASURE Q &
2019 MEASURE G
FY26 PROPOSED SPENDING PLANS
City Council
March 11, 2025
Nick Pegueros
Administrative Services Director & CFO
AGENDA
Proposed Spending plans
2024 Measure Q General Obligation Bond
2019 Measure G 0.5% Local Sales Tax
Next Steps
2 Provide direction on the Measure G & Q spending
plans for the Fiscal Year 2025-26 (FY26) operating and
capital improvement program budget.
3 OBJECTIVE
Purpose
FY26 budget development
2024 Measure Q – new funding source for:
Stormwater
Streets
Fire stations
2019 Measure G – funding source for any municipal purpose Primarily funded street improvements
4 MEASURE Q PROPOSED SPENDING
PLAN
5 BOND FUNDED PROJECTS –
PROCESS
6 2024 MEASURE Q
BALLOT QUESTION
Shall City of San Bruno measure be adopted to:
repair deteriorating storm-drains, preventing failure, flooding, water pollution/ sinkholes;
repair potholes/ city streets;
upgrade fire stations, improving emergency response, accommodate modern firefighting/ lifesaving emergency medical equipment, function during earthquakes/ natural disasters;
authorizing $102,000,000 in bonds, at a tax rate of 3¢ per $100 of assessed value, while bonds are outstanding, initially generating $3,300,000 annually, without funds for administrators/ cannot be taken by the State of California, with citizen oversight/ independent audits? 7 2024 MEASURE Q ELECTION RESULTS
17,380 VOTES
12,703
73%
4,677
27%
Yes No
8 BOND FUNDED PROJECTS –
DETERMINING FACTORS
Eligible projects
Storm drains, Fire Station No. 52, Pavement Management Program
Cashflow
85% completion within 3 years of bond issuance
Staff capacity
Existing staff capacity & adopted Capital Improvement Program
9 FY26 Proposed Measure Q Budget
10 Forward-Looking CIP Project Funding
11 MEASURE G PROPOSED SPENDING
PLAN
12 2019 MEASURE G
BALLOT QUESTION
Shall the City of San Bruno's measure to fund city services/facilities such as:
neighborhood police patrols;
fire prevention services;'
urban wildfire protection;
crime suppression/investigation;
pothole/street repair;
increasing parking supply;
upgrading parks/other city services/facilities;
expanding services supporting local businesses;
by levying a 1/2¢ sales tax, providing approximately $4,000,000 annually, until ended by voters, with independent citizens' oversight, no money for Sacramento, all funds spent locally, be adopted? 13 2019 MEASURE G ELECTION RESULTS
7,591VOTES
4,677
62%
2,914
38%
Yes No
14 2019 Measure G
General tax – may be used for any municipal purpose at discretion of the City Council
Estimate: $3.5 to $4.0 million per year ½ cent sales tax Appropriations since 2019
15 Category 5-year total
($million)
% of
total
Pavement Management Program $15.0 78%
Maintain services during COVID-19 Emergency 2.0 10
Streetlight, sidewalks, signage 1.5 8
Wildfire mitigation 0.4 2
Public safety vehicles/facilities 0.3 2
$19.1 100%
Revenue Measure Oversight Committee
(RMOC)
Staff proposed
FY26 spending Plan
to RMOC
2/13/25
RMOC Meeting
“…provide
feedback to the
City Council
regarding the staff
recommended
allocation of the
tax revenue as part
of the budget
process”
3/11/25
RMOC input to City
Council
16 FY26 Proposed Measure G Budget
17 Forward-Looking CIP Project Funding
18 Vote & Discussion
3-2 in concurrence with the recommended spending plan Caveats
Voter intent for Measure G
Maintain robust PMP funding
Measure Q or other source
19 Next Steps
20 City Council Budgetary Actions and
Direction
21 March 25th
• Measure Q reimbursement resolution
• CIP Preview
• Financial policies update
April 8th • FY26 Priority Initiatives Scoping
• Master Fee Schedule
April 22nd • General Fund budget preview
June • 6/10 - Budget public hearing
• 6/24 – Budget adoption
22 Measure Q
Measure G
FY26 Recommended Budgets
QUESTIONS
23