June 17, 2025
TO: City Council
REQUESTED BY: Tom Prill, Deputy City Manager
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Adoption of Fiscal Year 2025-2026 Budget
RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 4081, adopting the Fiscal Year Budget 2025-2026 for the General Fund and all other funds. The Budget of the Successor Agency is also adopted by separate action.
BACKGROUND:
For each fiscal year, which begins on July 1, the City Manager and staff prepare a proposed budget for the operations and improvements of the city for the City Council’s review, deliberation, and adoption. The budget is adopted by resolution, which provides for appropriations and expenditures to operate the city government for the ensuing fiscal year.
A detailed summary of the budget is presented to the City Council here in the form of the Proposed Budget. This document summarizes the recommended expenditures in all budget funds and programs, as well as any recommended service level enhancements and reserves.
DISCUSSION:
The General Fund Budget estimated revenues of $46,709,472 and recommended total expenditures of $50,447,418 are balanced using fund balance. Total expenditures include capital projects, development services, and other transfers, but do not include the Public Safety CFD subsidy. All other funds, with the exception of the Public Safety CFD, are balanced by adequate revenues or fund balances, and in the case of capital projects, by the transfer of funds from the capital projects reserve and by new capital funding scheduled to be received.
The proposed total budget is categorized as:
General Fund $ 50,447,418
Non-general Fund 109,217,077
Capital Projects 59,005,513
Total Budget $218,670,008
The proposed General Fund operating budget is distributed as follows:
General Government $13,987,410
Development Services 4,461,162
Public Safety 24,680,805
Total GF Operating Budget $43,129,377
Advance to Public Safety CFD #2003-1 $ 2,361,793
Reserves
At June 30, 2025, after proposed transfers, the General Fund Contingency Reserve is projected to be $5,692,217, the Capital Projects Reserve is projected to be $7,457,071, the Development Services Fund Balance is projected to be $2,500,000 and the Measure V Fund Balance is projected to be $10,000,000. The Unreserved Fund Balance is projected at $1,000,000.
Additional supporting documents will be sent to City Council and made available in advance of the meeting.
FISCAL IMPACT:
Fiscal impacts of recommended expenditures are balanced by estimated revenues, and in some funds, the use of available fund balances. With this Budget, the Public Safety CFD will again require a subsidy of about $2,361,793.
ATTACHMENTS:
Resolution No. 4081 - Budget FY 25-26
Resolution No. 4081 - Attachment A