General Fund
Mid-Year Budget Update
Fiscal Year 2025-26
NICK PEGUEROS
ADMIN. SERVICES DIRECTOR &
CFO
CITY COUNCIL
FEBRUARY 24, 2026
Agenda
General Fund Revenues
General Fund Expenditures
Next Steps
2 Receive an update on the 2025-26 General Fund
Budget
3 Objective
2025-26 REVENUES
4 General Fund Adopted Budget
Revenues $68.9 million
5 $48,492,623
$2,118,309
$5,355,772
$12,813,547
Taxes Fees, Fines, Grants Use of Property Internal Charges & Other Revenue Trends & Projections
Trends
Property taxes grew at 4% at midyear
Sales taxes increasing
Baseline sales taxes are flat
Cannabis taxes lower than promised
Interest earnings flat
Projected
VLF In-Lieu backfill at greater risk
Interest rates decreasing
Sales taxes at risk supporting General Fund operations 6 General Fund Budget to Actual
Revenue
7 $-
$5
$10
$15
$20
$25
$30
Taxes Fees, Fines, Grants Use of Property Internal Charges & Other
Millions
General Fund
As of January 31st
2025 Budget 2025 Actuals 2026 Budget 2026 Actuals
2025-26 EXPENDITURES
8 General Fund Adopted Budget
Expenditures $68.9 million
9 $50,066,895
$1,583,949
$3,789,136
$2,729,826
$10,699,833
Salaries & Benefits Supplies & Materials Services
Utilities & Other Internal Allocations
Expenditure Trends & Projections
Trends
Salaries & benefits growing faster than revenue
All other categories flat
Projected
Growth in salaries & CalPERS requires Measure G support Loss of VLF In-lieu requires use of reserves to avoid cuts Anticipate lower vacancy rates due to new contracts
10 General Fund Budget to Actual
Expenditures
11 $-
$5
$10
$15
$20
$25
$30
$35
Salaries & Benefits Supplies & Utilities Services Internal Allocations Millions
As of January 31st
FY25 Budget FY25 Actuals FY26 Budget FY26 Actuals
2026-27 BUDGET
12 REVENUE CONSIDERATIONS
State Default on 2004 Legislation
San Mateo Co. cities losing backfill for lost
Vehicle License Fee revenue
$7 million, annually
State Controller’s Audit Determination
San Mateo Co. allocation of Excess ERAF
to cities rendered invalid
$2 million, annually
CDTFA Ruling
Tax Sharing Agreement misallocates sales
tax revenue to San Bruno, in litigation
$8-10 million, annually
2024 Senate Bill 549 Enabled Litigation
Authorizes casinos to sue cardrooms for
lost revenue
$3.7 million, annually
General Fund At Risk
$21-22 million, annually
13 BUDGET ROAD MAP
Milestone Date
City Council Goal Setting January 30th
Budget principles & 2026-27 (FY27) Priorities February 10th Revenue Measure Oversight Committee (RMOC) annual meeting February 19th Mid-year budget report February 24th
Mid-year budget amendments, Measure G Spending Plan, Five-year forecast March 10th Impact fee spending plan, recommended Capital Improvement Program (CIP) March 24th Fee study recommendations April 14th
Master Fee Schedule adoption, FY27 Operating Budget preview April 28th Budget book publication May 7th
City Manager’s budget workshop June 2nd (tentative)
FY27 City Manager’s Recommended Budget consideration June 9th CIP Public Hearing, FY27 Budget adoption, Enabling resolutions June 23rd 14 No action requested
15 RECOMMENDATION
QUESTIONS
16 COMMUNITY SERVICES
COMMISSION STUDY SESSION
FEBRUARY 24, 2026
CITY COUNCIL REGULAR MEETING
Travis M Karlen - Community Services Director
AGENDA
I. Objective
II. Background
III. Benefits of Combined Commission
IV. Combined Commission Precedents
V. Consolidation Approach
VI. Questions
2 OBJECTIVE
Consider and Provide Direction on the Creation of a
Community Services Commission by Merging the Culture and Arts Commission Into the Parks and Recreation Commission and Adding Library Services to the Commission’s Advisory Role
3 BACKGROUND
• August 2023 - City Council
Strategic Initiative - CBC Governance
and Workplan Review
• July 2024 – Reassignment of
Architectural Review Committee
Responsibilities and Advisory Functions
to Planning Commission and Staff
• May 2025 - Traffic Safety and Parking Committee Merged With Bicycle and Pedestrian Advisory Committee
4 OVERLAPPING RESPONSIBILITIES
5 LIBRARY
• Community Enrichment Programs
• Literary and Cultural Events
• Lifelong Learning Hub
CULTURE AND ARTS COMMISSION
• Created 2003
• Public Art
• Cultural Programming
• Art Initiatives
PARKS AND RECREATION
COMMISSION
• Created Over 50 Years Ago
• Park Planning/
Capital Improvements
• Recreation Programs
• Special Events
COMMUNITY SERVICES
COMMISSION
CALIFORNIA CITIES WITH COMBINED
PARKS/RECREATION AND
CULTURE/ARTS COMMISSION
6 Cities That Combined
Two Commissions Into One
Turlock (2025)
Fillmore (2023)
Calexico (2023)
Los Altos (2023)
Danville (2019)
Hawthorne (1999)
Combined Commissions
From Their Inception
Fresno (2021)
Placentia (2019)
Suisun City (2019)
Martinez (2012)
Garden Grove (2005)
Carson (1970s)
Marina (1970s)
Los Alamitos (N/A)
COMMUNITY SERVICES
COMMISSION APPROACH
Community Services Commission Advisory Responsibilities • Parks Planning and Capital Improvements
• Recreation Programs and Services
• Public Art and Cultural Initiatives
• Library Services, Programs, and Facilities
• Community and Cultural Events
7 COMMUNITY SERVICES
COMMISSION APPROACH
• Transition Current Members
• Gradual Right-Sizing
• Meeting Frequency
• Implementation Timeline
8 NEXT STEPS
Return to City Council With:
• Municipal Code
Amendments
• Bylaws Updates
• Prior to Beginning of
New Fiscal Year
9 QUESTIONS?
10 Technology Assessment
FEBRUARY 24, 2026
CITY COUNCIL MEETING
NICK PEGUEROS
Administrative Services Director & CFO
AGENDA
I. Information Technology Assessment
II. Objective
III. Background
IV. Discussion
V. Recommendations/Next Steps
VI. Questions?
2 OBJECTIVE
Review the findings of the Technology Assessment
Receive and file the Technology Assessment Report
3 BACKGROUND
• Reasons for the Technology Assessment
Significant changes, City-wide & within IT Division
City’s determination of need for Assessment
• Goals
Determine City technology needs
Evaluate current technology resources
Identify gap between technology needs and current
resources
Recommend changes to technology resources and
processes
4 DISCUSSION
• Defining a Technology Assessment
• Findings from Technology Assessment
Environmental Changes Impacting Information Technology Need to Address:
Technology Governance
Technology Master Plan
Cybersecurity Assessment
Complex, High Priority Projects (Action Priority Matrix) Lower Staffing Levels other Cities
5 Defining a Technology Assessment
Differences:
• Technology Assessment
• Technology Master Plan (recommended)
6 • Increasing reliance on technology to deliver core City services
• 24/7 Service Model
• Artificial Intelligence
• Measure Q related projects
7 Finding:
Environmental Changes
• Need to look holistically at City’s technology needs and wants • Evaluate costs and benefits
• ‘Things which matter most must never be at the mercy of things which matter least.’ *
* Johann Wolfgang von Goethe
8 Finding:
Technology Governance
Benefits:
• Strategic Alignment
• Operational Efficiency
• Risk Management
• Financial Stewardship
• Innovation & Adaptability
• Transparency & Accountability
9 Finding:
Technology Master Plan
Benefits:
• Proactive Risk Identification
• Operational Continuity
• Regulatory Compliance
• Financial Protection
• Public Trust & Transparency
• Future-Ready Security
10 Finding:
Cybersecurity Assessment
Action Priority Matrix
11 Action Priority Matrix – A Graphic
representing the City’s Technology
Major Project Portfolio.
Action Priority Matrix
12 Projects in the upper half of the
Matrix are the most complex, and
are or will be the most challenging
for Information Technology
Division
Action Priority Matrix
13 Seventeen major projects of
significant complexity
Action Priority Matrix
14 Eight projects that are complex,
and will have a significant impact
on City operations.
Current staffing level will not
support completion the City’s
complex and high-impact project
portfolio within a desirable
timeframe.
Staffing Levels
15 City of San Bruno’s Information
Technology Division ranks in the
lowest third for authorized staffing
compared to city-wide total
approved full-time positions,
according to a survey of municipal
Technology Managers.
RECOMMENDATIONS/NEXT STEPS
• Request addition of an Information Technology Analyst position for the Information Technology Division Mid-year FY 25/26 • Develop / Issue RFI for Cybersecurity Assessment
• Develop / Issue RFI for Technology Master Plan
• Include FY 26/27 Budget Request funding for:
Cybersecurity Assessment
Technology Master Plan
16 QUESTIONS?
17 In Memory of
Dena Gunning