City Council Meeting – October 21, 2025; Item 3.3
2024-2025
Annual Report
2 2024-2025 Budget:
Overall Performance Met Revised Expectations
• Revenues generally performed as expected
• Overall expenditures ended the year within or below budget • General Fund had an extremely small surplus and most other funds ended the year with balances at or above estimated levels
– After rebudgets and clean-ups, General Fund fund balance variance of 0.03% of Modified Budget revenues and expenditures
• Recommended actions close out 2024-2025, adjust 2025-2026 as necessary and in accordance with City Council Policy 1-18, recognize grants and reimbursements, and address several urgent needs in Special Funds and Capital Funds
3 Key Economic Indicators
2023-2024 2024-2025 % Change
Employment/Jobs (June) 1.16 million 1.15 million (0.5%) SJ MSA Unemployment Rate (June) 4.4% 4.7% 6.8%
Residential Real Estate Property Sales Average 460
per month
Average 479
per month 4.1%
Median Single-Family Home Price (June) $1.7 million $1.7 million 0% Construction Activity Valuation $1.6 billion $1.7 billion 9.6% 4 Major General Fund Revenues:
Year-Over-Year Comparison
Revenue Category
2023-2024
Actuals
($ Million)
2024-2025
Actuals
($ Million)
$ Change
($ Million)
%
Change
Property Tax 473.7 498.5 24.8 5%
Sales Tax 333.4 331.4 (2.0) (1%)
Utility Taxes 129.8 139.9 10.1 8%
Business Tax 86.1 87.7 1.6 2%
Franchise Fees 52.5 58.5 6.0 11%
Fees, Rates, and Charges 25.0 26.3 1.3 5%
Transient Occupancy Tax 15.9 17.2 1.3 8%
5 General Fund: Proposed Allocation of
Additional Fund Balance
Recommended 2025-2026 General Fund Adjustments ($000s)
Additional 2024-2025 Ending Fund Balance $21,862
Clean-Up/Rebudget Actions ($20,669)
Fund Balance Available After Clean-up/Rebudget
Actions $1,192
Recommended Budget Adjustments
Required Technical/Rebalancing Actions ($1,192)
Grants/Reimbursements/Fee Activities ($0)
(Sources = ($2.6 million); Uses = ($2.6 million))
Total Recommended Budget Adjustments ($1,192)
6 General Fund:
Recommended Budget Adjustments (Partial List)
Required Technical/Rebalancing Actions ($ in 000s)
Transfer to the Real Property Transfer Tax Fund (Liquidated Prior Year Measure E Encumbrances) ($2,139)
Multiple Housing Fee Program Reserve ($900)
Police Department Non-Personal/Equipment (Oversized Vehicle Tow Service) ($600)
Senior Nutrition Program ($266)
Police Department Personal Services/Licenses and Permits (Cardroom Regulation Program) ($131)
Transfer to the Emergency Reserve Fund $3,000
Revenue from Local Agencies (Purified Water Program) $728 Transfer from Real Property Transfer Tax Fund (Interest Income) $700 7 Selected Special/Capital Fund
Performance
0 10
20 30
40 50
60 70
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $ in Millions
Building & Structure, Construction Excise, and
Construction & Conveyance Tax Revenues
Building & Structure Construction Excise C & C
8 Selected Special/Capital Funds
Performance
Airport Operating Funds
• Passenger activity decreased by 4.7% from 11.9 million to 11.4 million • Adopted Budget assumes passenger activity for 2025-2026 is 11.3 million passengers
9 Special/Capital Funds
Recommended Budget Adjustments
• Clean-Up Actions
− Fund Balance Reconciliations
− Rebudget Adjustments
− Technical Adjustments (e.g., Net-Zero Transfers/Reallocations) • Recommended Adjustments
− Recognize Grants and Reimbursements
− Update Cost/Revenue Estimates and Project Timing
10 Recommendation
• Approve items (a) through (d) to accept the 2024-2025 City Manager’s Annual Report, amend the 2025-2026 budget for various operating and capital funds, and approve a position shift between the City Manager’s Office of Economic Development and Cultural Affairs and the Planning, Building and Code Enforcement Department
• Approve item (e) – with modifications – to amend Chapter 4.80 of Title 4 of the Municipal Code to formally add new funds in the Traffic Capital Program that were previously included as subaccounts within the Construction Excise Tax Fund
− Modify the eligible uses for the VRF Measure B Pavement Maintenance Fund and VTA Measure B Pavement Maintenance Fund to reflect the authorizing ballot measures
− Modify the eligible uses for the State Gas Tax Pavement Maintenance Fund to reflect the State of California’s approved “Guidelines Relating to Gas Tax Expenditures for Cities and Counties”
2024-2025
Annual Report
Jim Shannon Selena Ubando Jennifer Tell
Budget Director Financial Status Coordinator Capital Budget Coordinator Bonny Duong Bryce Ball
Assistant Budget Director Operating Budget Coordinator Claudia Chang William Yu
Deputy Budget Director Operating Budget Coordinator