TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Jim Shannon
SUBJECT: Approval of Various Budget
Actions for Fiscal Year
2025-2026
DATE: June 5, 2026
Approved
Date:
6/5/26
COUNCIL DISTRICT: Citywide
RECOMMENDATION
Adopt 2025-2026 Appropriation Ordinance and Funding Sources Resolution amendments in various funds as detailed in the General Fund and Special/Capital Fund attachments to this memorandum.
SUMMARY AND OUTCOME
Approval of the recommended budget adjustments will help to ensure that appropriations are not over-expended at the end of 2025-2026, align revenues and expenditures with actual performance and assumptions used in the development of the 2026-2027 Operating Budget and 2026-2027 Mid-Biennial Capital Budget, and recognize new revenues and associated expenditures.
BACKGROUND
The City Manager’s Budget Office has conducted a final detailed review of year-to-date expenditures, encumbrances, and revenues against year-end projected levels to align budgeted amounts with actual performance. Based on this review, the following types of adjustments to the Appropriation Ordinance and Funding Sources Resolution are recommended in this memorandum:
• Adjustments to ensure that adequate funding in various departments, City-Wide expenses, capital projects, and other appropriations are available through the end of the fiscal year for estimated expenditure levels.
COUNCIL AGENDA: 6/16/26
FILE: 26-717
ITEM: 3.3
HONORABLE MAYOR AND COUNCIL
June 5, 2026
Subject: Approval of Various Budget Actions for Fiscal Year 2025-2026
• Adjustments to align revenue estimates and appropriations with the latest information and assumptions used to develop the 2026-2027 Operating and 2026-2027 Mid-Biennial Capital Budgets.
• Adjustments to recognize and appropriate funding and reimbursements from other agencies for eligible activities.
These actions are intended to be responsive to past City Council direction to prevent after-the-fact ratifications of over-expenditures. Many of the adjustments included in this memorandum were also assumed in the development of the 2026-2027 Operating and 2026-2027 Mid-Biennial Capital Budgets. Additionally, separate, related adjustments are also included in Manager’s Budget Addendum #26, Recommended Amendments to the 2026-2027 Proposed Operating Budget and 2026-2027 Proposed Mid-Biennial Capital Budget, and the Mayor’s June Budget Message for Fiscal Year 2026-2027 to rebudget or otherwise adjust funding for 2026-2027, as appropriate.
ANALYSIS
Provided below is a brief overview of the budget actions recommended in this report.
Budget actions are categorized as: 1) Recommended Budget Adjustments; and 2) Clean-Up Actions.
Recommended Budget Adjustments
The attached Budget Adjustment Summaries for the General Fund, Special Funds, and Capital Funds include actions to align estimated revenues and corresponding expenditures with actual performance. A detailed description of each recommended budget adjustment is also included, by fund and the type of adjustment. These actions are summarized below.
General Fund
Required Technical/Rebalancing Actions – A thorough analysis has been completed on all revenue categories based on activity through April. Based on this analysis, it is anticipated that overall General Fund revenue will end the year at or slightly below the budgeted estimate. Adjustments to revenue categories in this memorandum totaling $9.2 million, however, are limited to categories where there is confidence of the year- end collection level. Upward adjustments include: increasing Sales Tax revenue by $6.2 million based on receipts through the first three quarters of the fiscal year and resolution of the dispute with the State; increasing Transfers and Reimbursements by $6.2 million due to higher interest earnings and overhead reimbursements within eligible Special and Capital Funds; increasing Business Tax revenue by $3.0 million based on higher Cannabis Business Tax collections; and increasing Property Tax revenues by $2.0 million based on information received from Santa Clara County.Downward adjustments include: decreasing Utility Tax revenues by $5.0 million due to activity levels being down for most of the fiscal year; and decreasing the revenues from fire
HONORABLE MAYOR AND COUNCIL
June 5, 2026
Subject: Approval of Various Budget Actions for Fiscal Year 2025-2026
emergency response by $2.9 million – the Ambulance Transport and User Fee is down due to the timing of the billing vendor being onboarded and the First Responder Fee is under-collecting due to a significant portion of the individuals receiving the service lacking medical insurance and the City does not anticipate receiving payment from those individuals. As part of the 2025-2026 Annual Report process, the General Fund will be fully reconciled and additional information about revenue and expenditure performances will be discussed as part of that report.
Actions included in the 2025-2026 Mid-Year Budget Review reduced the budget for General Fund expenditures by $16.6 million in response to weaker than expected revenues in 2025-2026. Despite these actions, budgetary pressures remain – primarily within the Police and Fire Departments – and a number of adjustments are necessary to ensure adequate funding in various individual appropriations is available through the end of the fiscal year for estimated expenditure levels. The most significant adjustments to resolve expected overages include: an increase to the Police Department’s Personal Services appropriation of $10.5 million to address a projected overage of overtime expenses to maintain minimum staffing levels to effectively respond to calls for service
1; an increase to the Fire Department’s Personal Services appropriation of $9.5 million to address a projected overage due to an increase in disability and modified-duty hours, continued vacancy levels in paramedic assignments, and additional sworn vacancies requiring overtime to maintain daily minimum staffing levels2; an increase to the Public Works Department’s Personal Services appropriation of $2.3 million to address a projected overage due to staffing costs for positions supported by capital-funded projects that charged to the General Fund to perform maintenance activities due to delays in active capital project work, partially offset by anticipated savings in the Public Works Department’s Non-Personal/Equipment ($1.2 million) and Janitorial Services appropriations ($625,000); and increases to the Workers’ Compensation Claims – Police ($500,000) and Workers’ Compensation Claims – Fire ($350,000) appropriations to align funding with actual claims costs and projected settlements for the remainder of 2025-2026. These actions are offset by the increased General Fund revenues and use of the Budget Stabilization Reserve, as discussed below.
In addition, several net-zero actions are recommended to reallocate savings from a designated appropriation to fund increases in another appropriation, including: from the Salaries and Benefits Reserve to the Fire Department’s Personal Services appropriation to address a calculation error during the development of the Base Budget that underbudgeted estimated Fire Department retirement costs due to changes in how the
1 This projected overage is slightly lower than the $11 - $14 million estimated overage included in the Police Department Overtime Spending memorandum approved by the City Council at their meeting on March 10, 2026. While still high, the decelerating overage is attributable to additional overtime controls implemented by the Police Chief and the redeployment of existing employees from other specialized units to Field Patrol to reduce the number of overtime slots to backfill for vacant patrol positions that took effect May 2026, resulting in a reduction of approximately 12,400 overtime hours from March through May compared with the same period last year.
2 The Fire Department and the City Manager’s Budget Office will continue to closely monitor overtime usage in 2026-2027 and bring forward recommendations for future City Council action, as appropriate.
HONORABLE MAYOR AND COUNCIL
June 5, 2026
Subject: Approval of Various Budget Actions for Fiscal Year 2025-2026
Police and Fire Retirement Board allocated required contributions between the Police and Fire Departments ($3.0 million); from the Homeless Rapid Rehousing appropriation to the Housing Department’s Non-Personal/Equipment appropriation for the Homeless Management Information System and grant compliance monitoring ($1.2 million); from the Police Department’s Non-Personal/Equipment - Police Vehicle Replacements and Operations & Maintenance appropriation due to deferred vehicle purchases to its Non- Personal/Equipment appropriation to address higher costs for sexual assault forensic exams, telecommunications services, and towing services for oversized vehicles ($1.1 million); from the Planning, Building, and Code Enforcement Department’s Personal Services appropriation to its Non-Personal/Equipment appropriation to address unanticipated expenses for property abatement, collection of abandoned shopping carts, inspection services associated with Accessory Dwelling Unit, and temporary board up and clean-up of properties ($500,000); from the Parks, Recreation, and Neighborhood Services Department’s Non-Personal/Equipment appropriation to the Police Department’s Personal Services appropriation for overtime costs incurred in support of encampment management ($350,000); and from the Office of the City Attorney’s Personal Services appropriation to its Non-Personal/Equipment appropriation to address higher-than-anticipated costs for court filings, subpoenas, and legal notices ($180,000).
To offset these General Fund expenditure overages, and to partly achieve the 2025- 2026 fund balance estimate of $21.0 million included in the 2026-2027 City Manager’s Budget Request and 2027-2031 Five-Year Forecast – as revised by Manager’s Budget Addendum #27, Beginning Fund Balance Adjustments – recommendations are included to reduce the Revenue Loss Reserve by $75.0 million to reallocate those funds to the Budget Stabilization Reserve, which has a current balance of $12.5 million. From this revised interim balance of $87.5 million, a decrease of $30.0 million is recommended to meet the Beginning Fund Balance estimate included in the 2026-2027 Proposed Operating Budget, for a revised interim balance of $57.5 million. Due to continued revenue weakness and strained expenditure budgets, even with the increased cost controls and actions taken as part of the 2025-2026 Mid-Year Budget Review, the General Fund is expected to have very little, if any, remaining fund balance at the end of 2025-2026. Allocating $30.0 million from the Budget Stabilization Reserve offsets the balance of General Fund adjustments recommended in this memorandum while also providing initial funding to the 2025-2026 Ending Fund Balance Reserve of $14.3 million. A combination of additional revenues or expenditure savings is necessary to reach the $21.0 million fund balance target, which is expected to be realized during the close-out of the fiscal year. Finally, the 2026-2027 Proposed Operating Budget assumes the use of an additional $35.0 million of this reserve to fund urgent one-time needs, including deferred capital maintenance and to provide bridge funding in 2026- 2027 to allow for the full phase-in of ongoing budget reductions.
Due to these actions, the remaining balance of the Budget Stabilization Reserve in 2025-2026 is $22.5 million, which is below the $25.0 million recommended for rebudget into 2026-2027 as part of the Manager's Budget Addendum #26, Recommended Amendments to the 2026-2027 Proposed Operating Budget and 2026-2027 Proposed
HONORABLE MAYOR AND COUNCIL
June 5, 2026
Subject: Approval of Various Budget Actions for Fiscal Year 2025-2026
Mid-Biennial Capital Budget. Actions will be included in the 2025-2026 Annual Report, scheduled for City Council review in October 2026, to reconcile the final amount in the Budget Stabilization Reserve in alignment with actions necessary to close the fiscal year.
Grants/Reimbursements/Fees – A series of net-zero, revenue-supported adjustments in the General Fund, totaling $4.6 million, are recommended to reflect updated revenues and expenditures for grants, reimbursements, and/or fee activities. Notable adjustments include actions to recognize and appropriate: reimbursements from the State of California for Fire Department wildland fire response assistance in 2025-2026 ($2.5 million); sponsorship revenue from the Mayor’s Office and several City Council Districts ($565,000); reimbursements from the United States Marshals Services for Police Department overtime incurred in support of the Regional Fugitive Task Force ($250,000); reimbursements from Santa Clara County FIFA World Cup Program (FI) Funds for Police Department security services associated with the 2026 FIFA World Cup ($250,000); reimbursements from property owners for additional Sidewalk Repairs ($200,000) completed in late spring 2026; San José Public Library Foundation grant funding for temporary staffing in support of the Library’s Digital Equity and Inclusion Program ($176,000); donations from the Diane M. Brandenburg Survivor’s Trust for Office of Economic Development and Cultural Affairs staffing costs related to the installation of the Seeds of Peace Monument Project ($150,000); federal grant funding to partially support a Lieutenant position in the Northern California Regional Intelligence Center ($141,000); and fee revenue for Police Department overtime support at billable festivals ($140,000).
Special/Capital Funds
Special Fund Adjustments – These actions rebalance funds to adjust for revenue variances in the current year, recognize new grants and reimbursements, reflect changes in project and program allocations based on revised cost estimates, and shift allocations between funds. In every case, funding is available within the respective funds to offset the required adjustment.
Capital Fund Adjustments – These actions rebalance funds to adjust for revenue variances in the current year, recognize new grants and reimbursements, adjust capital allocations based on revised cost estimates and project timing, and adjust budgets to properly align project expenditures and corresponding revenues. In every case, funding is available within the respective funds to offset the required adjustment.
Clean-Up Actions
The Recommended Budget Adjustments and Clean-Up Actions for the General Fund, Special Funds, and Capital Funds summarize all budget adjustments by fund, and additionally include technical, net-zero clean-up actions for the General Fund and Special/Capital Funds to: correct existing appropriations, avoid cost overruns at year- end through net-zero adjustments, and adjust for final fund balance reconciliations.
HONORABLE MAYOR AND COUNCIL
June 5, 2026
Subject: Approval of Various Budget Actions for Fiscal Year 2025-2026
General Fund and Special/Capital Funds
Clean Up Actions – These actions include technical adjustments and net-zero transfers between appropriations. The following adjustments are identified by title only:
• Appropriation Reallocations – Actions are recommended to adjust expenditures between appropriations to align funding levels within a fund or department to prevent over-expenditure. Offsetting (“Reallocation”) actions have been identified to address these overages. This includes the shift of funding between Personal Services and Non-Personal/Equipment appropriations within the same fund to use savings to cover temporary staffing costs. In all cases, these actions facilitate the completion of work efforts previously approved by the City Council.
• Capital Program and Public Works Department Support Service Costs – Recommended increases to various appropriations for higher than anticipated labor and professional services costs incurred by the Public Works Department while supporting capital projects in various funds.
• Fund Balance Reconciliation – Beginning Fund Balances in each budgeted fund are adjusted each year as part of the Annual Report process based on unaudited Annual Comprehensive Financial Report (ACFR) statements. For some funds, however, additional actions are included to further revise Beginning Fund Balances based on a reconciliation to the final audited 2024-2025 ACFR.
• Overhead – Increases Overhead allocations in various Special and Capital Funds to account for higher than anticipated costs.
• Personal Services Overage – Recommended increases of $10,000 or less for several departmental Personal Services appropriation to fund minor projected overages due to the department’s lower than budgeted vacancies, position payments, or hiring positions at a salary higher than budgeted.
• Salary and Benefits Program – Recommended increases to several departmental Personal Services appropriations to address projected overages as a result of the funding that was set aside in the Salaries and Benefits Reserve for management pay for performance increases and health rate increases not being distributed as part of the 2025-2026 Mid-Year Budget Review.
• Transfer to the General Fund – Interest Income – Interest earnings are transferred from several Special/Capital Funds to the General Fund. These actions adjust these transfers to reflect actual projected revenue for 2025-2026.
HONORABLE MAYOR AND COUNCIL
June 5, 2026
Subject: Approval of Various Budget Actions for Fiscal Year 2025-2026
EVALUATION AND FOLLOW-UP
This memorandum presents recommended adjustments to align budgeted levels for 2025-2026 with current year-end estimates of revenues and expenditures. The final reconciliation of the 2025-2026 fiscal year will be presented in the 2025-2026 Annual Report, which is scheduled to be released on September 30, 2026, and the 2025-2026 Annual Comprehensive Financial Report scheduled to be released prior to the end of calendar year 2026.
FISCAL IMPACTS
A series of budget actions are recommended in the General Fund, Special Funds, and Capital Funds to reflect anticipated year-end performance. There are sufficient resources in each fund to support the recommended budget actions.
COORDINATION
The adjustments recommended in this memorandum have been coordinated with the various City departments.
PUBLIC OUTREACH
This memorandum will be posted on the City’s Council Agenda website for the June 16, 2026 City Council meeting.
BOARD, COMMISSION, COMMITTEE RECOMMENDATION AND INPUT
No board, commission, or committee recommendation or input is associated with this action.
CEQA
Not a Project, File No. PP17-004, Government Funding Mechanism or Fiscal Activity with no commitment to a specific project which may result in a potentially significant physical impact on the environment.
HONORABLE MAYOR AND COUNCIL
June 5, 2026
Subject: Approval of Various Budget Actions for Fiscal Year 2025-2026
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
JIM SHANNON
Budget Director
For questions, please contact Jim Shannon, Budget Director, at [email protected]
ATTACHMENTS:
Attachment A – General Fund Recommended Budget Adjustments Summary Attachment B – Special Funds Recommended Budget Adjustments Summary Attachment C – Capital Funds Recommended Budget Adjustments Summary Attachment D – General Fund Recommended Budget Adjustments and Clean-Up Actions
Attachment E – Special Funds Recommended Budget Adjustments and Clean-Up Actions
Attachment F – Capital Funds Recommended Budget Adjustments and Clean-Up Actions
HONORABLE MAYOR AND COUNCIL
June 5, 2026
Subject: Approval of Various Budget Actions for Fiscal Year 2025-2026
I hereby certify that there will be available for appropriation in the amounts as listed in the Fiscal Year 2025-2026 monies in excess of those heretofore appropriated therefrom:
General Fund (001) ........................................................................ $13,575,235 Airport Maintenance and Operation Fund (523) ............................. $25,000,000 Airport Revenue Fund (521) ............................................................. $3,298,185 Benefits Funds - Benefit Fund (160) .................................................... $246,000 Communications Construction and Conveyance Tax Fund (397) .......... $35,000 Community Facilities District No.8 (Communication Hill) Fund (373) .... $41,457 Ice Centre Revenue Fund (432) .......................................................... $142,326 Library Construction and Conveyance Tax Fund (393) ......................... $65,000 Library Parcel Tax Capital Fund (483) ................................................. $576,000 Parks City-Wide Construction and Conveyance Tax Fund (391) ......... $261,000 Public Works Development Fee Program Fund (241) ...................... $3,000,000 Public Works Program Support Fund (150) ...................................... $1,400,000 Real Property Transfer Tax Fund (404) .......................................... $19,200,000 Residential Construction Tax Contribution Fund (420) .......................... $35,000 San José Opioid Response Fund (130) ............................................... $145,000 Storm Drainage Fee Fund (413) .............................................................. $8,000 Storm Sewer Capital Fund (469) ...................................................... $1,633,632 Workforce Development Fund (290) ...................................................... $34,000
JIM SHANNON
Budget Director
2025-2026 General Fund Recommended Budget Adjustments Summary Year End Adjustments
Action Department Expenditure Change Revenue Change
Required T
echnical-Rebalancing Actions
Non-Personal/Equipment (Microbusiness Start-Up Grants)
This action recommends a change in the grant award amount for the Microbusiness Start-Up Grants project that was
approved as part of the 2024-2025 Adopted Operating
Budget. The 2024-2025 Adopted Operating Budget allocated one-time funding of $150,000 for a Microbusiness Start-Up grant project focused on entrepreneurs, particularly
immigrants and low-income residents, who lack collateral to secure small sums of startup capital at low rates of interest.
Originally
, grants between $1,000 and $3,000 were to be
offered. However, feedback from the City’s Small Business Advisory Committee indicated that grants within this range would be too small to be meaningful. Therefore, it is
recommended to increase the individual grant award amount to $5,000 or $10,000, which would allow for up to 30 grants, based on total available funding for the project of $150,000.
City Manager - Of
fice
of Economic
Development and
Cultural Affairs
Personal Services (Overage)
This action increases the Energy Department’
s Personal
Services appropriation by $30,000 to align funding levels with projected personal services costs. A 2% vacancy
factor in the Energy Department was applied to all General Fund positions to account for anticipated turnover and
employee attrition that may occur in a given fiscal year. A vacancy factor typically better aligns a department budget with staffing level trends; however, the Energy
Department’s Climate Smart team – exclusively funded in the General Fund – was fully staffed and no vacancy
savings occurred. The vacancy factor has been removed in the development of the 2026-2027 budget on an ongoing
basis.
Energy Department $30,000
Banking Services
This action increases the Banking Services City-Wide
Expenses appropriation by $50,000, from $635,000 to
$685,000. This funding is to support banking and financial services such as general banking and lockbox services,
merchant card processing services, and investment
custodial services. This action also supports unanticipated increases in city-wide transaction volumes and expanded utilization of payments made in person or via the online payment system throughout the fiscal year
.
Finance Department $50,000
1 ATTACHMENT A
2025-2026 General Fund Recommended Budget Adjustments Summary Year End Adjustments
Action Department Expenditure Change Revenue Change
Commercial Paper Program Fees
This action increases the Commercial Paper Program Fees City-Wide Expenses appropriation by $30,000, from
$152,000 to $182,000. The cost of the City’s Commercial Paper Program is proportionately allocated to each active Commercial Paper debt service appropriation, with the
balance of the unallocated capacity paid by the General Fund. Due to unanticipated delays to several projects that were anticipated to access Commercial Paper, additional costs must be paid by the General Fund.
Finance Department $30,000
Property Tax Administration Fee
This action increases the Property Tax Administration Fee City-Wide Expenses appropriation by $456,000, from $2.7 million to $3.2 million, to support higher than anticipated Santa Clara County administration costs. These fees are related to the collection and distribution of the City’s portion of property tax proceeds.
Finance Department $456,000
Fire Training Center Relocation
This action increases the Fire Department’s Fire Training Center Relocation (FTC) appropriation by $70,000, from
$130,000 to $200,000, for project close-out expenses.
Stretched over 75,900 square feet, the FTC houses training rooms, offices, storage, a 6-story training tower, auxiliary buildings, and the co-located Emergency Operations Center (EOC). This funding will fund the replacement of the EOC video wall. Although the current displays were state-of-the- art when installed, operational feedback notes significant clarity limitations at various distances. Upgrading to a high- resolution system will drastically improve legibility and viewing angles. Finally, the Air Handling Unit will be modified to convert its existing chilled-water cooling configuration to a standalone Direct Expansion cooling system, ensuring
operational independence and efficiency for critical zones.
Fire Department $70,000
Non-Personal/Equipment (Firefighter Academy Turnouts)
This action increases the Fire Department’s Non-
Personal/Equipment appropriation by $174,000 to cover
higher than anticipated costs for turnout gear, driven by rising equipment prices and an increase in the number of participants attending the academy. The department
conducts two academies per fiscal year with up to 30
recruits each, and to ensure safety and operational
readiness, each recruit is issued two sets of turnout gear.
Fire Department $174,000
2 2025-2026 General Fund Recommended Budget Adjustments Summary Year End Adjustments
Action Department Expenditure Change Revenue Change
Personal Services (Overage)
This action increases the Fire Department's Personal
Services appropriation by $9.5 million to align funding levels with increased overtime usage in 2025-2026. The budgetary overage is due to an increase in disability and modified-duty hours, continued vacancy levels in paramedic assignments, and additional sworn vacancies requiring overtime to
maintain the daily minimum staffing level of 190 personnel and avoid emergency response service delays, as well as vacation and sick time payouts. The Fire Department and the City Manager’s Budget Office will continue to closely monitor overtime usage in 2026-2027 and bring forward
recommendations for future City Council action, as
appropriate.
Fire Department $9,500,000
Personal Services (Retirement Calculation)
This action increases the Fire Department's Personal
Services appropriation by $3.0 million to cover higher than anticipated retirement costs as a result of a calculation error during the development of the Base Budget. Due to a
change in how the Police and Fire Department Retirement Board split the retirement obligations between Police and Fire, the distribution of budgeted Fire Department retirement costs does not align with estimated level of contributions to the Police and Fire retirement system. The split between Police and Fire will continue to be monitored in 2026-2027, and a redistribution will be brought forward, if necessary, as part of a future budget action.
Fire Department $3,000,000
Workers' Compensation Claims - Fire
This action increases the Workers' Compensation Claims - Fire City-Wide Expenses appropriation by $350,000, from $12.6 million to $13.0 million, to align budgeted levels with higher than anticipated Fire Department claims costs,
including multiple permanent disability payments in the amount of $406,000 and a one-time benefit payment of
$60,000.
Fire Department $350,000
Business Taxes
This action increases the revenue estimate for Business Taxes by $3.0 million, from $85.0 million to $88.0 million, to align the budgeted estimate for the Cannabis Business Tax with current collection trends and more closely align with assumptions included in the 2026-2027 Operating Budget.
The increase in this revenue category is recommended to offset expenditure increases, revenue reductions, and/or increase the 2025-2026 Ending Fund Balance Reserve, as
described elsewhere in this memorandum.
General Fund Revenue $3,000,000
3 2025-2026 General Fund Recommended Budget Adjustments Summary Year End Adjustments
Action Department Expenditure Change Revenue Change
Fees, Rates and Charges (Fire Emergency Response Fees)
This action decreases the revenue estimate for Fees, Rates and Charges by $2.9 million, from $32.3 million to $29.4 million, to more closely align the budgeted estimate with current collection trends and with assumptions included in the 2026-2027 Proposed Operating Budget. This decrease reflects lower Ambulance Transport and User Fee revenue (-$1.6 million) and lower First Responder Fee revenue (-$1.3 million). The Ambulance Transport and User Fee recovers service costs directly from users based on Santa Clara
County's Schedule of Ambulance and User Fees. Due to
the selection and onboarding of the billing vendor taking longer than anticipated, 2025-2026 Ambulance Transport and User Fee revenue will fall short of the budgeted estimate.
The First Responder Fee is charged to anyone who receives the service, whether they are insured or uninsured. Fee revenue is anticipated to be substantially lower than first anticipated as a significant portion of individuals receiving emergency medical services lack medical insurance and the City does not anticipate receiving payment from a
significant portion of uninsured individuals. The First Responder Fee revenue was decreased on an ongoing basis as part of the 2026-2027 Forecast; however, the action
recommended in this report reduces the 2025-2026 fee
revenue. The Fees, Rates and Charges adjustments
recommended as part of this action will be offset by
increases in other revenue categories, as described
elsewhere in this memorandum.
General Fund Revenue ($2,850,000)
Property Tax
This action increases the revenue estimate for Property Tax by a net of $2.0 million, from $522.5 million to $524.5 million, to align the budgeted estimate with the most recent information provided by Santa Clara County. The net
increase in Property Tax reflects additional Aircraft Property Tax ($1.0 million), Educational Revenue Augmentation Fund (ERAF) revenue ($800,000), Unsecured Property Tax
($600,000), and Successor Agency to the Redevelopment
Agency (SARA) Property Tax ($500,000), partially offset by lower General Secured Property Tax (-$700,000),
Homeowner's Property Tax Relief (-$100,000), and SB 813 Property Tax (-$100,000). The net increase in this revenue category is recommended to offset expenditure increases, revenue reductions, and/or increase the 2025-2026 Ending Fund Balance Reserve, as described elsewhere in this
memorandum.
General Fund Revenue $2,000,000
4 2025-2026 General Fund Recommended Budget Adjustments Summary Year End Adjustments
Action Department Expenditure Change Revenue Change
Sales Tax (Dispute Resolution)
This action increases the revenue estimate for Sales Tax by $1.9 million on a one-time basis in 2025-2026 as the result of the resolution of a tax dispute with the State of California.
Additional discussion regarding the impacts of the resolution in 2026-2027 and beyond is included in the General Fund Revenue Estimates section of the 2026-2027 Proposed
Operating Budget. Another action to increase the revenue estimate from Sales Tax proceeds is recommended
elsewhere in this memorandum to align the budgeted
estimate with collection trends through the third quarter of the fiscal year. After accounting for all Sales Tax
transactions recommended in this memorandum, the revised Sales Tax budgeted estimate will increase from $340.0
million to $345.9 million, of which $277.9 million is
anticipated in General Sales Tax. A corresponding
adjustment to increase the Revenue Loss Reserve is
recommended elsewhere in this memorandum to offset this adjustment.
General Fund Revenue $1,880,351
Sales Tax
This action increases the revenue estimate for Sales Tax by $4.0 million, to align the General Sales Tax budgeted
estimate with collection trends through the third quarter of the fiscal year. An additional action is recommended
elsewhere in this memorandum to reconcile General Sales Tax following the resolution of a dispute with the State of California. After accounting for all Sales Tax transactions recommended in this memorandum, the revised Sales Tax
budgeted estimate will increase from $340.0 million to $345.9 million, of which $277.9 million is anticipated for General Sales Tax. The increase in this revenue category is
recommended to offset expenditure increases, revenue
reductions, and/or increase the 2025-2026 Ending Fund
Balance Reserve, as described elsewhere in this
memorandum.
General Fund Revenue $4,000,000
Transfers and Reimbursements
This action increases the revenue estimate for Transfers and Reimbursements by $6.2 million (from $148.2 million to $154.4 million) to align the budgeted estimate with current collection trends and more closely align with assumptions included in the 2026-2027 Proposed Operating Budget. The increase in this revenue category reflects higher transfers from other funds related to interest earnings ($5.3 million) and higher overhead reimbursements ($879,000). The
increase in this revenue category is recommended to offset expenditure increases, revenue reductions, and/or increase the 2025-2026 Ending Fund Balance Reserve, as described elsewhere in this memorandum.
General Fund Revenue $6,222,000
5 2025-2026 General Fund Recommended Budget Adjustments Summary Year End Adjustments
Action Department Expenditure Change Revenue Change
Utility Tax
This action decreases the revenue estimate for Utility Tax by $5.0 million, from $142.5 million to $137.5 million, to align the budgeted estimate with current collection trends and more closely align with assumptions included in the 2026- 2027 Proposed Operating Budget. The decrease in Utility Tax reflects lower Electricity Utility Tax revenue (-$3.0 million), Gas Utility Tax revenue (-$1.0 million), and Water Utility Tax revenue (-$1.0 million). The Utility Tax
adjustments recommended as part of this action will be
offset by increases in other revenue categories, as
described elsewhere in this memorandum.
General Fund Revenue ($5,000,000)
Homeless Rapid Rehousing
This action decreases the Homeless Rapid Rehousing
appropriation by $1.2 million, from $2.6 million to $1.4 million, due to savings from sunsetting the former Rapid Rehousing Program. The savings are recommended to be
reallocated to the Housing Department’s Non-
Personal/Equipment appropriation to fund the Homeless
Management Information System and contractual services
for grant monitoring. A corresponding action to increase the Housing Department’s Non-Personal/Equipment appropriation is recommended to offset this action in this memorandum.
Housing Department ($1,200,000)
Non-Personal/Equipment (Homeless Management
Information System & Compliance Monitoring)
This action increases the Housing Department’s Non-
Personal/Equipment appropriation by $1.2 million, from
$15,000 to $1.2 million, to fund the Homeless Management Information System and contractual services for monitoring grant subrecipients that administer local, state, and federal grants funds supporting housing, homelessness, and
community development programs for compliance with
financial and programmatic requirements. This action is offset by reallocating savings from the Homeless Rapid
Rehousing appropriation, which a corresponding decrease is recommended in this memorandum.
Housing Department $1,200,000
Non-Personal/Equipment (Overage)
This action increases the Office of the City Attorney's Non- Personal/Equipment appropriation by $180,000 to cover
higher-than-anticipated costs for court filings, subpoenas, and legal notices.
Office of the City
Attorney
$180,000
Personal Services (Vacancy Savings)
This action decreases the Office of the City Attorney's Personal Services appropriation by $180,000 to reflect
salary and benefit savings driven by staff vacancies.
These savings are recommended to offset a corresponding increase to the Office of the City Attorney’s Non-
Personal/Equipment appropriation as included in this
memorandum.
Office of the City
Attorney
($180,000)
6 2025-2026 General Fund Recommended Budget Adjustments Summary Year End Adjustments
Action Department Expenditure Change Revenue Change
2025-2026 Ending Fund Balance Reserve
This action establishes the 2025-2026 Ending Fund Balance Reserve in the amount of $14.3 million to set aside funds to partly achieve the 2025-2026 fund balance estimate of
$21.0 million included in the 2026-2027 City Manager’s
Budget Request and 2027-2031 Five-Year Forecast, and as amended by Manager’s Budget Addendum #27, Beginning
Fund Balance Adjustments.
Additional funding from excess revenues and expenditure savings must be realized in 2025-2026 to fully meet the fund balance estimate for 2026-2027. Necessary adjustments will be brought forward for City Council consideration following the reconciliation of actual 2025-2026 financial performance as part of the 2025-2026 Annual Report.
Office of the City
Manager
$14,340,642
Budget Stabilization Reserve
This action includes several adjustments to the Budget
Stabilization Reserve, which has a current balance of $12.5 million. The first is an increase of $75.0 million reallocated from the Revenue Loss Reserve, as described elsewhere in this memorandum, for an interim balance of $87.5 million.
The second is a decrease of $30.0 million to meet the
Beginning Fund Balance estimate included in the 2026-2027 Proposed Operating Budget, for a revised interim balance of $57.5 million. Due to continued revenue weakness and
strained expenditure budgets, even with the increased cost controls and actions taken as part of the 2025-2026 Mid- Year Budget Review, the General Fund is expected to have very little, if any, remaining fund balance at the end of 2025-2026. Allocating $30.0 million from the Budget
Stabilization Reserve offsets the balance of General Fund adjustments recommended in this memorandum while also
providing initial funding to the 2025-2026 Ending Fund
Balance Reserve. The 2026-2027 Proposed Operating
Budget assumes the use of an additional $35.0 million to fund urgent one-time needs, including deferred capital
maintenance and to provide bridge funding in 2026-2027 to allow for the full phase-in of ongoing budget reductions. Due to all of these actions, the remaining balance of the Budget Stabilization Reserve in 2025-2026 is expected to be $22.5 million, which is below the
$25.0 million recommended for rebudget into 2026-2027 as part of the Manager's Budget Addendum #26, Recommended
Amendments to the 2026-2027 Proposed Operating Budget
and 2026-2027 Proposed Mid-Biennial Capital Budget.
Actions will be included in the 2025-2026 Annual Report, scheduled for City Council review in October 2026, to
reconcile the final amount in the Budget Stabilization
Reserve in alignment with actions necessary to close the fiscal year.
Office of the City
Manager
$45,000,000
7 2025-2026 General Fund Recommended Budget Adjustments Summary Year End Adjustments
Action Department Expenditure Change Revenue Change
Non-Personal/Equipment (Savings)
This action decreases the Office of the City Manager's Non- Personal/Equipment appropriation by $220,000 which reflects savings in contractual services and reallocates the savings to the Office of the City Manager’s Personal Services
appropriation to offset an anticipated overage.
Office of the City
Manager
($220,000)
Personal Services (Office of City Manager - Road to
2026 Executive Leadership)
This action increases the Office of the City Manager's
Personal Services appropriation by $70,000 to fund a
temporary position to provide continued oversight and
coordination of the FIFA World Cup event and other major events occurring in San José.
Office of the City
Manager
$70,000
Personal Services (Overage)
This action increases the Office of the City Manager's
Personal Services appropriation by $150,000 to provide
funding for a projected overage primarily due to unbudgeted position costs for the Urban Areas Security Initiative grant and leave balance payouts. Because of delays in receiving the Urban Areas Security Initiative grant funding, the costs for the position had to be funded by the Office of the City Manager’s existing appropriation. A corresponding decrease to the Office of the City Manager’s Non-Personal/Equipment appropriation is recommended elsewhere in this
memorandum.
Office of the City
Manager
$150,000
Revenue Loss Reserve (Dispute Resolution)
This action increases the Revenue Loss Reserve by $1.9
million as the result of the resolution of a tax dispute with the State of California. Additional discussion regarding the impacts of the resolution in 2026-2027 and beyond is
included in the General Fund Revenue Estimates section of the 2026-2027 Proposed Operating Budget. A corresponding adjustment to Sales Tax is recommended elsewhere in this memorandum.
Office of the City
Manager
$1,880,351
Revenue Loss Reserve
This action decreases the Revenue Loss Reserve by $75.0 million to reallocate funds to the Budget Stabilization Reserve. Combined with a separate recommended action to increase the Revenue Loss Reserve by $1.9
million, the revised reserve totals $66.9 million. This reserve will be spent down over 16 fiscal year quarters beginning July 1, 2026 in accordance with the resolution of a dispute with the State of California, inclusive of the
temporary impact to the City’s share of County Pool sales tax proceeds. Of this amount, $15.5 million is used in the 2026-2027 Proposed Operating Budget to support the
repayment of prior year tax proceeds in 2026-2027, with the remaining balance expected to be spent down over the
subsequent 12 quarters.
Office of the City
Manager
($75,000,000)
8 2025-2026 General Fund Recommended Budget Adjustments Summary Year End Adjustments
Action Department Expenditure Change Revenue Change
Salaries and Benefits Reserve
This action decreases the Salaries and Benefits Reserve by $3.0 million, from $5.0 million to $2.0 million, to reallocate funds to partially offset an overage in the Fire Department's Personal Services appropriation resulting from higher than anticipated retirement costs due to a calculation error during the development of the 2025-2026 Base Budget. A
corresponding increase to the Fire Department’s Personal Services appropriation is recommended in this
memorandum.
Office of the City
Manager
($3,000,000)
Coyote Creek Project Reaches 5-7 (Valley Water)
This action decreases the Coyote Creek Project Reaches 5- 7 (Valley Water) City-Wide Expenses appropriation by
$325,000, from $1.5 million to $1.2 million. In April 2023, Santa Clara Valley Water District (SCVWD) awarded grant funding of $4.8 million to the Parks, Recreation and
Neighborhood Services (PRNS) Department to facilitate
trash and debris removal in encampments along creeks and waterways. This work has been completed and PRNS has
spent approximately $3.3 million of the total grant award, leaving unallocated funding of $1.5 million. In continued partnership, an agreement was executed on March 6, 2026, between the City and SCVWD to reallocate a portion of the remaining funds to support the Police Department's patrol of the Coyote Creek and Guadalupe River Trails in 2025-2026 and 2026-2027. The 2025-2026 Adopted Budget includes
actions that allocated
$650,000 in overtime funding to the Police Department for trail patrol, partially offset by a $325,000 contribution from SCVWD. Since this funding is already budgeted in the Police Department, this appropriation can be reduced. A
corresponding action to reduce the 2025-2026 estimate for Revenue from Local Agencies is included elsewhere in this memorandum.
Parks, Recreation and
Neighborhood Services
Department
($325,000)
Non-Personal/Equipment (BSJ Encampment Management
Savings)
This action decreases PRNS's non-personal/equipment
allocation by $350,000. Savings generated from Beautify San José (BSJ) can be reallocated for Police Department support of BSJ's encampment management services and
this action will ensure the expenditures are booked correctly.
A corresponding action to increase the Police Department's Personal Services appropriation by $350,000 is included elsewhere in this memorandum.
Parks, Recreation and
Neighborhood Services
Department
($350,000)
9 2025-2026 General Fund Recommended Budget Adjustments Summary Year End Adjustments
Action Department Expenditure Change Revenue Change
Non-Personal/Equipment (Overage)
This action increases the Planning, Building, and Code
Enforcement Department’s Non-Personal/Equipment
appropriation by $500,000 to address projected overages related to abatement services, inspection support, and
operational service costs. Major cost drivers include
approximately $100,000 for property abatements associated with public health and safety responses; $100,000 for
temporary board up and clean-up of properties; and
$200,000 for inspection services associated with previously constructed Accessory Dwelling Units to ensure code
compliance. A corresponding decrease to the Planning,
Building, and Code Enforcement Department’s Personal
Services appropriation is recommended in this memorandum to offset this action.
Planning, Building and
Code Enforcement
Department
$500,000
Personal Services (Savings)
This action decreases the Planning, Building, and Code
Enforcement Department’s Personal Services appropriation by $500,000 to recognize estimated vacancy savings. The savings are recommended to offset a corresponding
increase to the Planning, Building, and Code Enforcement Department's Non-Personal/Equipment appropriation related to abatement services, inspection support, and other
operational costs. A corresponding increase to the Planning, Building, and Code Enforcement Department’s Non-
Personal/Equipment appropriation is recommended in this memorandum to offset this action.
Planning, Building and
Code Enforcement
Department
($500,000)
Non-Personal/Equipment - Police Vehicle Replacements and Operations & Maintenance
This action decreases the Police Department’s Non-
Personal/Equipment - Police Vehicle Replacements and
Operations & Maintenance appropriation by $1.1 million to recognize one-time savings and to offset the projected
overage in the Police Department’s Non-Personal/Equipment appropriation. The savings are generated by aligning the anticipated expenditures for vehicle replacements with their anticipated arrival. After analyzing vehicle purchase orders and likely delivery, one-time savings can be realized without any near-term impact to the Police Department’s vehicle replacement schedule. These savings are recommended to
be reallocated to the Police Department’s Non-
Personal/Equipment appropriation to offset the overage. The vehicle replacement schedule will be evaluated annually, and funding adjustments will be made accordingly as part of the annual development of the budget.
Police Department ($1,050,000)
10 2025-2026 General Fund Recommended Budget Adjustments Summary Year End Adjustments
Action Department Expenditure Change Revenue Change
Non-Personal/Equipment (Overage)
This action increases the Police Department's Non-
Personal/Equipment appropriation by $1.1 million to address a projected overage. Key drivers of the overage are higher than budgeted costs for sexual assault forensic exams
($570,000), telecommunications services ($408,000), towing services for oversized vehicles ($219,000), and server
replacement ($36,000), that were partially offset by controls for other miscellaneous expenses. The Department has
approximately $8.0 million, or 14.6% of its non-
personal/equipment budget available for the remainder of the fiscal year but will not have sufficient funding to cover higher than budgeted expenses. A corresponding decrease to the Non-Personal/Equipment – Police Vehicle Replacements and Operations & Maintenance appropriation is recommended in this memorandum to offset this action.
Police Department $1,050,000
Personal Services (Overage)
This action increases the Police Department's Personal
Services appropriation by $10.5 million to address a
projected overage in overtime costs, slightly lower than the range of $11 - $14 million reported in the April 2026 update to the Public Safety, Finance, and Strategic Support
Committee as part of the Bi-Monthly Financial Report. As discussed in the Police Department Overtime Spending
memorandum that was approved by the City Council at their meeting on March 10, 2026, the overage is due to overtime expenses exceeding the savings from vacant positions to maintain minimum staffing and service levels. While still high, the decelerating overage is attributable to additional overtime controls implemented by the Police Chief and the redeployment of existing employees from other specialized units to Field Patrol to reduce the number of overtime slots to backfill for vacant patrol positions that took effect May 2026, resulting in a reduction of approximately 12,400
overtime hours from March through May compared with the same period last year. Additional actions regarding the Police Department’s overtime budget are included in the 2026-2027 Proposed Operating Budget.
Police Department $10,500,000
11 2025-2026 General Fund Recommended Budget Adjustments Summary Year End Adjustments
Action Department Expenditure Change Revenue Change
Personal Services (Overtime for Encampment Management)
This action increases the Police Department’s Personal
Services appropriation by $350,000 for overtime for
encampment management. The Police Department assists
the BeautifySJ Team during various clean ups and
encampment closures. This action will cover the funding gap between the currently available funding and what is needed to complete this work. Police presence during encampment clean ups is important to help ensure the safety of
everyone involved, including unhoused individuals, outreach workers, and city staff.
Officers can assist in maintaining order, preventing potential conflicts, and responding quickly to emergencies. A
corresponding decrease to the Parks, Recreation and
Neighborhood Services Department’s Non-
Personal/Equipment appropriation is recommended elsewhere in this memorandum to offset this action.
Police Department $350,000
Revenue from Local Agencies (Coyote and Guadalupe River Trail Patrol)
This action decreases the estimate to Revenue from Local Agencies by $325,000 to reflect no revenue collection that was assumed from the Santa Clara Valley Water District
(SCVWD) for their contribution to support San Jose Police Department’s patrol of the Coyote Creek and Guadalupe
River Trail. As part of the 2025-2026 Adopted Operating Budget, an action was included to allocate $650,000 in
overtime funding to the Police Department for trail patrol, partially offset by a $325,000 contribution from SCVWD.
However, SCVWD’s contribution will no longer occur as a revenue collection in 2025-2026 but instead the contribution will be from repurposing grant funds previously received and allocated to the Coyote Creek Project Reaches 5-7 (Valley Water) allocation as described elsewhere in this
memorandum.
Police Department ($325,000)
Workers' Compensation Claims - Police
This action increases the Workers' Compensation Claims - Police City-Wide Expenses appropriation by $500,000, from $11.4 million to $11.9 million, to align budgeted levels with higher than anticipated Police Department claims costs, including a projected one-time settlement cost of $2.6
million, as of April 2026.
Police Department $500,000
12 2025-2026 General Fund Recommended Budget Adjustments Summary Year End Adjustments
Action Department Expenditure Change Revenue Change
City Hall Water Intrusion Remediation
This action establishes the City Hall Water Intrusion
Remediation appropriation in the amount of $150,000 to
procure consultant services to serve as an Owner’s Advisor.
The consultant will support project planning, cost control, and technical oversight during development of a Design-Build delivery approach where a single contractor will be
responsible for both design and construction. The overall remediation effort is currently estimated to cost
approximately $45 million to $50 million, with $2.0 million of initial funding included in the 2026-2027 Proposed Budget.
Staff will return to the City Council later in the 2026-2027 with a recommended strategy to initiate construction, which could include a phased project schedule and leverage a mix of one-time sources and financing proceeds.
Public Works
Department
$150,000
Closed Landfill Compliance
This action increases the Closed Landfill Compliance
appropriation by $200,000, from $514,000 to $714,000, to fund final construction costs for the Singleton Landfill Gas Collection System and Flare project at the Singleton Road Disposal Site and increased operating and maintenance
costs at the Story Road Landfill. Due to escalating costs for ongoing closed landfill operations and maintenance
activities, a portion of the funding originally set aside for the Singleton project was used for operational needs. Of the recommended increase, $75,000 supports operational costs and $125,000 is needed to complete the Singleton Landfill Gas Collection System and Flare project. The increased
ongoing operational costs will be evaluated as part of the development of the 2027-2028 Base Budget.
Public Works
Department
$200,000
Janitorial Services - Non-Personal/Equipment (Savings)
This action decreases the Janitorial Services – Non-
Personal/Equipment appropriation by $625,000 to recognize contract savings resulting from the renegotiation of janitorial services from a variable hourly rate model to a monthly flat- rate structure. As part of the 2026-2027 Base Budget, the ongoing funding for this appropriation has been decreased by $1.0 million to reflect the renegotiated contract. These savings are recommended to be reallocated to the Public Works Department’s Personal Services appropriation to
partially offset the projected overage.
Public Works
Department
($625,000)
13 2025-2026 General Fund Recommended Budget Adjustments Summary Year End Adjustments
Action Department Expenditure Change Revenue Change
Non-Personal/Equipment (Savings)
This action decreases the Public Works Department’s Non- Personal/Equipment appropriation by $1.2 million to
recognize savings in contractual services and supplies and materials. Savings were primarily realized in heating,
ventilation, and air conditioning, electrical, and plumbing services as City staff performed facility maintenance work that would have otherwise been completed by contractors.
These savings were partially attributable to positions
supported by capital-funded projects temporarily charging to the General Fund due to delays in active capital project work. These savings are recommended to be reallocated to the Public Works Department’s Personal Services
appropriation to partially offset the projected overage.
Public Works
Department
($1,200,000)
Personal Services (Overage)
This action increases the Public Works Department’s
Personal Services appropriation by $2.3 million to address projected overages primarily attributable to staffing costs for positions supported by capital-funded projects that temporarily charged to the General Fund due to delays in active capital project work ($2.2 million). During this period, staff supported facility maintenance activities, including heating, ventilation, and air conditioning, electrical, and plumbing-related work. As a result, savings were realized within the Public Works Department’s Non-
Personal/Equipment appropriation due to City staff
completing work that would have otherwise been performed by contractors. Additional overages include temporary
staffing, part-time staffing, and overtime costs within Animal Care and Services related to shelter operations
activity and temporary program support activities, and
temporary staffing costs for Super Bowl-related activities within the Events Team that are largely offset with additional revenues. Decreases to the Public Work’s Non-
Personal/Equipment and Janitorial Services appropriations are recommended elsewhere in this memorandum to partially offset this action.
Public Works
Department
$2,300,000
14 2025-2026 General Fund Recommended Budget Adjustments Summary Year End Adjustments
Action Department Expenditure Change Revenue Change
Transfer to the Willow Glen Community Benefit
Improvement District Fund
This action decreases the Transfer to the Willow Glen
Community Benefit Improvement District Fund appropriation by $642, from $16,198 to $15,556, to align the City’s special assessments obligation with the Consumer Price Index
adjustment applied on the two City-owned properties within the district boundaries. Special Assessments are collected from property owners within the district boundaries and may only be used for enhanced services and activities such as maintenance and cleaning of sidewalk areas, information and safety services, beautification activities beyond those provided by the City, and administrative costs. This
adjustment updates the City’s special assessments
obligation to reflect the latest approved district assessments for 2025-2026.
Public Works
Department
($642)
Unanticipated/Emergency Maintenance
This action increases the Unanticipated/Emergency
Maintenance appropriation by $150,000, from $1.15 million to $1.3 million, to fund heating, ventilation, and air conditioning repairs at the Police Administration Communication Building and replacement of broken windows at City Hall. Existing funding in the appropriation has been fully spent to address emergency facility repairs and urgent operational needs, including structural repairs at the Employee Garage,
emergency heating, ventilation, and air conditioning repairs at multiple City facilities, Police Department access control and electrical repairs, emergency chiller replacements and repairs, fire panel repairs, and various public safety facility repairs.
Public Works
Department
$150,000
15 2025-2026 General Fund Recommended Budget Adjustments Summary Year End Adjustments
Action Department Expenditure Change Revenue Change
Oversized Vehicle Regulation Pilot Program
This action increases the Oversized Vehicle Regulation Pilot Program City-Wide Expenses appropriation by $150,000,
from $425,000 to $575,000. In the 2024-2025 Operating
Budget, the City administration established the Oversized Lived-In Vehicle Regulation (OLIVE) pilot program to institute comprehensive regulation of oversized vehicles on City
streets. The OLIVE pilot program, as implemented, funded a range of temporary and permanent parking restrictions to facilitate the clean-up of impacted areas, encourage vehicle circulation, and mitigate potential environmental and safety impacts posed by extended parking of oversized vehicles on City streets.
An ongoing City-Wide allocation of $425,000 was approved, which provided $200,000 for contractual towing services and vehicle disposal, $150,000 for enforcement support, and $75,000 for BeautifySJ staffing support to help with onsite clean up. Initially, the comprehensive funding needs were unknown; however, with the pilot program well underway, additional costs have been identified. This action adds funding for disposal costs for 60 Recreational Vehicles (RV), which is estimated to cost $192,000 in 2025-2026. Although some funding exists to offset these costs, an additional $150,000 is needed. Actions to increase funding for RV
disposal costs will be brought forward as part of the
development of the 2027-2028 Operating Budget.
Transportation
Department
$150,000
Required Technical-Rebalancing Actions $8,680,351 $8,927,351 16 2025-2026 General Fund Recommended Budget Adjustments Summary Year End Adjustments
Action Department Expenditure Change Revenue Change
Grants-Reimbursements-Fees
Seeds of Peace Monument Project/Other Revenue
This action establishes the Seeds of Peace
Monument Project City-Wide Expenses appropriation
in the amount of $150,000 and increases the estimate
for Other Revenue by the same amount to recognize
funding from the Diane M. Brandenburg Survivor’s
Trust (Trust). The Trust is donating a large-scale
public art sculpture, entitled the Seeds of Peace
Monument, along with site improvements to be
installed at Arena Green West, a City-owned park
space located at Santa Clara and Autumn Streets.
The funding will cover initial City staff costs, which is limited to plan review, construction oversight, and
required inspections, in coordination with the Office
of Economic Development and Cultural Affairs,
Public Works Department, Parks, Recreation, and
Neighborhood Services Department, and other
outside agencies as required. At or near 95% of
construction plan review, the City and Trust will re-
evaluate the remaining staff costs needed to
complete the project, and the Trust will provide
sufficient funds to cover the remainder of the City’s
staff costs. The Trust will directly procure and manage its own contractors for the design, construction, and
installation of the monument and site improvement.
The project is anticipated to be completed by
December 2026.
City Manager -
Office of Economic
Development and
Cultural Affairs
$150,000 $150,000
Non-Personal/Equipment/Revenue from State of
California (Strike Team Reimbursement)
This action increases the Fire Department's Non-
Personal/Equipment appropriation and corresponding
estimate for Revenue from the State of California by
$283,032 to recognize reimbursements received in
accordance with the California Governor’s Office of
Emergency Services Fire Assistance Agreement.
These reimbursements are for Strike Team costs
associated with the deployments of Fire Department
personnel and resources to assist with wildland fire
response in 2024-2025 and 2025-2026.
Fire Department $283,032 $283,032
17 2025-2026 General Fund Recommended Budget Adjustments Summary Year End Adjustments
Action Department Expenditure Change Revenue Change
Personal Services/Revenue from State of California
(Strike Team Reimbursement)
This action increases the Fire Department's Personal
Services appropriation and corresponding estimate for
Revenue from the State of California by $2.2 million
to recognize reimbursements received for staff
deployments in accordance with the California
Governor’s Office of Emergency Services Fire
Assistance Agreement. These reimbursements are for
Strike Team costs associated with the deployment of
Fire Department personnel and resources to assist with
wildland fire response in 2024-2025 and 2025-2026.
Fire Department $2,202,636 $2,202,636
Californians4All Phase 4 Learning Pathway -
Library/Revenue from State of California
This action increases funding for the Californians4All
Phase 4 Learning Pathway - Library City-Wide
Expenses appropriation and the corresponding
estimate for Revenue from State of California by
$31,787, from $1.58 million to $1.61 million. On May
6, 2025, the City Council adopted a resolution to
accept a $5.6 million grant from California Volunteers
for the Youth Service Corps to continue the
Resilience Corps Program through December 31,
2026. This is the first year of a two-year grant that
provides funding for the Learning Pathway
administration costs and to pay wages to 52 young
adults who provide afterschool program supervision to
children in San José as part of the Resilience Corps
Program. The San José Public Library (SJPL), in
partnership with the San José Public Library
Foundation, leads the Learning Pathway, which
focuses on mitigating learning loss among K-8
students in low-resource census tracts through
expanded learning opportunities. This increase will
align operational expenses incurred this fiscal year
and enable the City to better advance the goals of the
grant while also ensuring compliance with grant
requirements.
Library Department $31,787 $31,787
18 2025-2026 General Fund Recommended Budget Adjustments Summary Year End Adjustments
Action Department Expenditure Change Revenue Change
Library Grants/Revenue from State of California
(Lunch at the Library)
This action increases the Library Grants City-Wide
Expenses appropriation and the corresponding
estimate for Revenue from the State of California by
$45,897 to recognize and allocate grant funding from
the California State Library. This funding will support programming for the Lunch at the Library Program,
including training, resources, and technical
assistance to help libraries establish successful
summer meal sites.
Library Department $45,897 $45,897
SJPL Foundation Grants/Other Revenue
This action increases the SJPL Foundation Grants
City-Wide Expenses appropriation and the
corresponding estimate for Other Revenue by $21,000
to recognize and appropriate grant funding from the
SJPL STEAM 25-26 Program ($20,000) and the
Summer Learning Program ($1,000). Funding will
support STEAM programming at library branches
focused on Digital Empowerment. This programming
will provide participants with opportunities to build
technological literacy and digital skills, as well as
connect patrons with external resources to help them
navigate a rapidly evolving technology landscape.
The Summer Learning Program provides
programming aimed at preventing learning loss
among youth during the summer months when school
is not in session.
Library Department $21,000 $21,000
SJPL Foundation Grants - Coding 5K/Other Revenue
This action increases the SJPL Foundation Grants
City-Wide Expenses appropriation and the
corresponding estimate for Other Revenue by
$176,300 to recognize and appropriate grant funding
from the SJPL Foundation to support the Digital
Equity Inclusion Program. The funding supports
temporary staffing needed to deliver the Library’s
Digital Equity and Inclusion Program, which provides
computer programming lessons and digital learning
activities for San Jose youth at branch library
locations city-wide.
Library Department $176,300 $176,300
Council District #01/Other Revenue (Sponsorship)
This action increases the Council District #01
appropriation and corresponding estimate for Other
Revenue by $9,200 to allocate revenue received from
sponsorship to support the Disability Awareness Day
and Black History Month events.
Mayor & City
Council
$9,200 $9,200
19 2025-2026 General Fund Recommended Budget Adjustments Summary Year End Adjustments
Action Department Expenditure Change Revenue Change
Council District #03/Other Revenue (Sponsorship)
This action increases the Council District #03
appropriation and corresponding estimate for Other
Revenue by $5,000 to allocate revenue received from
sponsorship to support the Christmas Tree Giveaway
event.
Mayor & City
Council
$5,000 $5,000
Council District #05/Other Revenue (Sponsorship)
This action increases the Council District #05
appropriation and corresponding estimate for Other
Revenue by $92,725 to allocate revenue received
from sponsorship to support the 2025 Cinco de Mayo,
2025 Lowrider, and 2026 Cinco de Mayo events.
Mayor & City
Council
$92,725 $92,725
Council District #08/Other Revenue (Sponsorship)
This action increases the Council District #08
appropriation and corresponding estimate for Other
Revenue by $33,000 to allocate revenue received
from sponsorship to support the 2025 4th of July
Fireworks and 2025 Fall Family Festival events.
Mayor & City
Council
$33,000 $33,000
Council District #09/Other Revenue (Sponsorship)
This action increases the Council District #09
appropriation and corresponding estimate for Other
Revenue by $35,000 to allocate revenue received
from sponsorship to support the 2025 Disability
Awareness Event and 2026 Music in the Valley
events.
Mayor & City
Council
$35,000 $35,000
Office of the Mayor/Other Revenue (Sponsorship)
This action increases the Office of the Mayor
appropriation and corresponding estimate for Other
Revenue by $390,000 to allocate revenue received to
fund positions in the Office of the Mayor for the
Strategic Partnerships program and sponsorship to
support the National Night Out event.
Mayor & City
Council
$390,000 $390,000
20 2025-2026 General Fund Recommended Budget Adjustments Summary Year End Adjustments
Action Department Expenditure Change Revenue Change
Californians4All Phase 4 Climate Change Pathway -
PRNS/Revenue from State of California
This action increases funding for the Californians4All
Phase 4 Climate Change Pathway - PRNS City-Wide
Expenses appropriation and the corresponding
estimate for Revenue from State of California by
$12,738, from $3.61 million to $3.62 million. On May
6, 2025, the City Council adopted a resolution to
accept a $5.6 million grant from California Volunteers
for the Youth Service Corps to continue the
Resilience Corps Program through December 31,
2026 and this is the first year of a two-year grant.
Parks, Recreation, and Neighborhood Services
(PRNS) Department will continue to partner with the
San Jose Conservation Corps to implement the
Climate Change Pathway, which aims to support the
cleanup of watersheds, trails, and parks. San Jose
Conservation Corps will partner with various
community organizations to host program participants
and support environmental stewardship. This increase
will align operational expenses incurred this fiscal
year and enable the City to better advance the goals
of the grant while also ensuring compliance with
grant requirements.
Parks, Recreation
and Neighborhood
Services
Department
$12,738 $12,738
Personal Services/Revenue from State of California
(Blight Eradication)
This action increases PRNS's Personal Services
appropriation and corresponding estimate for
Revenue from the State of California by $55,000 to
recognize the completion of year one of a two-year
maintenance agreement with the California
Department of Transportation (Caltrans). The
maintenance agreement with Caltrans covers
encampment clean-up costs in State rights-of-way up
to $400,000 through June 30, 2027. Including this
action, a total of $105,000 will be allocated in 2025-
2026. The remaining $295,000 is recommended to
be funded in 2026-2027. The maintenance
agreement identifies 13 specific areas to be
addressed, including routes along Highways 680, 280,
101, 87, and 85.
Parks, Recreation
and Neighborhood
Services
Department
$55,000 $55,000
21 2025-2026 General Fund Recommended Budget Adjustments Summary Year End Adjustments
Action Department Expenditure Change Revenue Change
Northern California Regional Intelligence Center –
Police 2024/Revenue from Federal Government
This action increases the Northern California
Regional Intelligence Center – Police 2024 City-Wide
Expenses appropriation and increases the
corresponding estimate for Revenue from the Federal
Government by $141,569. The Northern California
Regional Intelligence Center (NCRIC) works to
improve the region's ability to detect, prevent,
investigate, and respond to criminal and terrorist
activity. This allocation, which spans two fiscal years, will partially fund the salary, benefits, and overtime for one San José Police Department Lieutenant position
for the period from January 2026 to June 2026. With
this action and the existing budget already
appropriated in the 2025-2026 Modified Budget
($227,800 from the Northern California Regional
Intelligence Center Staffing City-Wide Expenses), the
Lieutenant position will be fully funded in 2025-2026.
Police Department $141,569 $141,569
Personal Services/Fees, Rates, and Charges (Billable
Festivals)
This action increases the Police Department's
Personal Services appropriation and the
corresponding revenue estimate for Fees, Rates, and
Charges by $140,000 to align funding with billable
festivals activity for 2025-2026. The Police
Department uses overtime by Police Officers to
provide services to parades, traffic security, and
marathons. The event organizers are responsible for
the costs incurred for securing the events and
reimburses the City for the costs.
Police Department $140,000 $140,000
22 2025-2026 General Fund Recommended Budget Adjustments Summary Year End Adjustments
Action Department Expenditure Change Revenue Change
Personal Services/Revenue from Federal Government
(United States Marshal Service Regional Fugitive Task
Force)
This action increases the Police Department’s
Personal Services appropriation and the
corresponding estimate for Revenue from Federal
Government by $250,000. The Police Department
has entered into an Agreement with the United States
Marshals Service (USMS) to participate in the
Regional Fugitive Task Force. Officers from the Covert
Response Unit have been deputized and are
credentialed as US Marshals Special Deputies. The
main focus will be to combine the efforts and
resources of federal, State, and local law
enforcement agencies to locate and apprehend their
most dangerous fugitives across jurisdictional
boundaries. The USMS will reimburse the Police
Department for task force overtime hours for the USMS
2026 Fiscal Year which began October 1, 2025 and
will end September 30, 2026.
Police Department $250,000 $250,000
Personal Services/Revenue from Local Agencies
(2026 FIFA World Cup)
This action increases the Police Department’s
Personal Services appropriation and the
corresponding estimate for Revenue from Local
Agencies by $250,000. The Santa Clara County FIFA
World Cup Program (FI) Funds is a reimbursable
Federal Emergency Management Agency (FEMA)
grant that provides funding from Bay Area Host
Committee via the California Office of Emergency
Services (CalOES). The Santa Clara County Office of
Emergency Services is the fiscal agent of these funds;
these funds are to be used for staffing and other costs related to planning for and securing team hotels and
training sites.
Police Department $250,000 $250,000
23 2025-2026 General Fund Recommended Budget Adjustments Summary Year End Adjustments
Action Department Expenditure Change Revenue Change
Personal Services/Other Revenue (Market Access
Grant Program)
This action increases the Public Works Department's
Personal Services appropriation and the
corresponding estimate for Other Revenue by
$123,000 to recognize alternative energy grant
revenues received from the Market Access Program.
This funding will be used to pay for temporary staffing costs supporting the City's Resiliency/Green Building
Team and lead coordinator to PG&E on the Market
Access Program. The Market Access Program is a
State program in response to Governor Newsom's July
30, 2021 Emergency Proclamation, which directed
state agencies to address the statewide shortage of
electricity. The Public Utilities Commission
authorized the program to fund projects that would
increase energy efficiency. Agencies received
payments based on actual savings at the meter during
peak energy times for the summer of 2025.
Public Works
Department
$123,000 $123,000
Sidewalk Repairs/Other Revenue
This action increases the Transportation Department's
Sidewalk Repairs City-Wide Expenses appropriation by
$200,000, from $2.5 million to $2.7 million, and
increases the estimate for Other Revenue by
$200,000. The Transportation Department received
an unanticipated invoice from its sidewalk repair
vendor for work completed in late spring along 67
citywide locations. The work totaled $293,000. While
the Department anticipates disputing some of the
charges, an increase of $200,000 is needed. Since
this repair work is cost-recovery, the City will issue
invoices to property owners, which will help offset the overall cost to the City.
Transportation
Department
$200,000 $200,000
Grants-Reimbursements-Fees $4,647,884 $4,647,884
TOTAL $13,328,235 $13,575,235
24 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Affordable Housing Impact Fee Fund (452)
Action Department Use Source
Housing Project Reserve
This action eliminates the Housing Project Reserve by $1.9 million to offset the increase to the Housing Loans and Grants appropriation recommended in this memorandum.
Housing Department
_
($1,889,545)
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset the actions recommended in this memorandum.
Housing Department
_
($110,455)
Housing Loans and Grants
This action increases the Housing Loans and Grants
appropriation by $2.0 million, from $1.4 million to $3.4 million, to account for a $3.4 million refund for the Santana Row Lot 12 development located at 358 Hatton Street that was
approved by City Council on June 17, 2025 and issued in 2025-2026. This action would provide additional funds to ensure that the full amount is refunded. This action is offset by decreases to the Housing Project Reserve and Ending
Fund Balance as recommended in this memorandum.
Housing Department
_
$2,000,000
Affordable Housing Impact Fee Fund (452) $0 $0
1 ATTACHMENT B
2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Airport Customer Facility And Transportation Fee Fund (519) Action Department Use Source
Rental Car Agency Distribution
This action establishes the Rental Car Agency Distribution appropriation in the amount of $1.0 million. The Rental Car Agencies will be reimbursed for qualifying expenses made during the COVID-19 pandemic for transportation costs and debt service payments when the revenue from the Customer Facility Charge was insufficient to cover expenses.
Reimbursements totaling approximately $4.0 million will be made over multiple years, with the budget actions brought forward as part of future budget phases. A corresponding decrease to the Future Debt Service Reserve will offset this action.
Airport Department
_
$1,044,819
Future Debt Service Reserve
This action decreases the Future Debt Service Reserve by $1.0 million, from $21.4 million to $20.4 million, to fund the Rental Car Agency Distribution allocation as discussed above.
Airport Department
_
($1,044,819)
Airport Customer Facility And Transportation Fee Fund
(519) $0 $0
2 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Airport Fiscal Agent Fund (525)
Action Department Use Source
Transfer to the Airport Revenue Fund
This action re-establishes the transfer to the Airport Revenue Fund in the amount of $3.3 million to account for additional interest revenue earned. The Airport's Bond Trustee makes debt service payments twice per year. Because the additional interest revenue is applied directly to this fiscal year's debt service payments, the overall debt service cost is reduced.
The series of actions recommended in this memorandum to transfer funds from the Airport Fiscal Agent Fund back to the Airport Revenue Fund reflects the use of savings from lower debt service payments to replenish the Airline Agreement Reserve. Corresponding actions to reduce the Debt Service Reserve in the Airport Fiscal Agent Fund, along with
adjustments in the Airport Revenue Fund, are recommended elsewhere in this memorandum.
Airport Department
_
$3,298,185
Debt Service Reserve
This action decreases the Debt Service Reserve by $3.3
million, from $79.6 million to $76.3 million, to offset the action recommended in this memorandum.
Airport Department
_
($3,298,185)
Airport Fiscal Agent Fund (525) $0 $0
3 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Airport Maintenance and Operation Fund (523)
Action Department Use Source
Airline Reserve Funds Distribution
This action re-establishes the Airline Reserve Funds
Distribution appropriation in the amount of $25.0 million. As part of the Airline-Airport Lease and Operating Agreement effective July 1, 2019, any net remaining revenue at the end of a fiscal year will be paid to the signatory airlines in proportionate share of their enplaned passengers. For 2025- 2026, Airport estimates the payment to be $25.0 million.
Corresponding actions to increase the Transfers and
Reimbursements in this fund, along with actions in the Airport Revenue Fund to ultimately decrease the Airline Agreement Reserve and transfer those funds back to this fund, are recommended elsewhere in this memorandum.
Airport Department
_
$25,000,000
Transfers and Reimbursements (Transfer from the Airport Revenue Fund)
This action increases the Transfer from the Airport Revenue Fund by $25.0 million, from $139.6 million to $164.6 million, to re-establish the Airline Reserve Funds Distribution
appropriation, as discussed above. Corresponding actions to increase the Airline Reserve Funds Distribution in this fund, along with adjustments in the Airport Revenue Fund, are recommended elsewhere in this memorandum.
Airport Department
_
$25,000,000
Airport Maintenance and Operation Fund (523) $25,000,000 $25,000,000 4 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Airport Revenue Fund (521)
Action Department Use Source
Transfer to the Airport Maintenance and Operation Fund
This action increases the Transfer to the Airport Maintenance and Operation Fund by $25.0 million, from $139.6 million to $164.6 million, to re-establish the Airline Reserve Funds Distribution appropriation in the Airport Maintenance and Operation Fund to distribute extra revenue. As part of the Airline-Airport Lease and Operating Agreement, any net
remaining revenue at the end of a fiscal year will be paid to the signatory airlines in proportionate share of their enplaned passengers. For 2025-2026, Airport Department estimates the payment to be $25.0 million. Corresponding actions to
decrease the Airline Agreement Reserve in the Airport
Revenue Fund, along with adjustments in the Airport
Maintenance and Operation Fund, are recommended elsewhere in this memorandum.
Airport Department
_
$25,000,000
Airline Agreement Reserve
This action decreases the Airline Agreement Reserve by $12.2 million, from $166.3 million to $154.1 million, to offset the various actions recommended elsewhere in this memorandum.
Airport Department
_
($12,201,815)
Transfers and Reimbursements (Transfer from the Airport Fiscal Agent Fund)
This action re-establishes the Transfer from the Airport Fiscal Agent Fund in the amount of $3.3 million, to account for the additional interest revenue that was applied to the 2025-2026 bond debt service payment, which resulted in lower debt service costs. Corresponding actions to replenish the Airline Agreement Reserve in the Airport Revenue Fund, along with actions in the Airport Fiscal Agent Fund, are recommended elsewhere in this memorandum.
Airport Department
_
$3,298,185
Transfer to the Airport Surplus Revenue Fund
This action decreases the Transfer to the Airport Surplus Revenue Fund by $9.5 million, from $39.4 million to $29.9 million, to reflect a delay in the Consolidated Rental Car Center Accessibility Upgrades project. Corresponding actions in the Airport Surplus Revenue Fund and in the Airport
Renewal and Replacement Fund are recommended elsewhere
in this memorandum.
Airport Department
_
($9,500,000)
Airport Revenue Fund (521) $3,298,185 $3,298,185
5 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Airport Surplus Revenue Fund (524)
Action Department Use Source
Transfers and Reimbursements (Transfer from the Airport Revenue Fund)
This action decreases the transfer from the Airport Revenue Fund by $9.5 million, from $39.4 million to $29.9 million, to reflect a delay in the Consolidated Rental Car Center
Accessibility Upgrades project. Corresponding actions in the Airport Revenue Fund and in the Airport Renewal and
Replacement Fund to reduce the amount of funding needed for the project are recommended elsewhere in this
memorandum.
Airport Department
_
($9,500,000)
Transfer to the Airport Renewal and Replacement Fund
This action decreases the transfer to the Airport Renewal and Replacement Fund by $9.5 million, from $39.4 million to $29.9 million, to reflect a delay in the Consolidated Rental Car Center Accessibility Upgrades project as discussed
previously. Corresponding actions in the Airport Revenue Fund and the Airport Renewal and Replacement Fund are
recommended elsewhere in this memorandum.
Airport Department
_
($9,500,000)
Airport Surplus Revenue Fund (524) ($9,500,000) ($9,500,000) 6 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Benefits Funds - Benefit Fund (160)
Action Department Use Source
Wellness Program/Other Revenue
This action increases the Wellness Program appropriation by $246,000, from $242,000 to $488,000, and the corresponding estimate for Other Revenue to recognize additional revenues received from Anthem to support health and wellness fairs, fitness challenges, wellness webinars, and rewards for
behavior changes, such as increased engagement with
primary care physicians (PCPs).
Human Resources
Department
_
$246,000 $246,000
Benefits Consultant Fee
This action increases the Benefit Consultant Fee appropriation by $8,000, from $280,000 to $288,000, to fund higher than anticipated contract costs. A corresponding action to decrease the Ending Fund Balance is recommended in this
memorandum to offset this action.
Human Resources
Department
_
$8,000
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset the action recommended in this memorandum.
Human Resources
Department
_
($8,000)
Benefits Funds - Benefit Fund (160) $246,000 $246,000
7 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Community Facilities District No. 8 (Communications Hill) Fund (373) Action Department Use Source
Community Facilities District No. 8 Annexation Feasibility Project/Other Revenue
This action increases the Community Facilities District No. 8 Annexation Feasibility Project appropriation by $41,457, from $28,683 to $70,140, and the corresponding estimate for Other Revenue to recognize funding from a private developer for City staff and consultant support to evaluate and investigate the potential annexation of certain properties into Community Facilities District No. 8 (Communications Hill). The funding will support feasibility analysis and initial annexation activities associated with the maintenance of public improvements
within the Communications Hill Specific Plan area.
Public Works
Department
_
$41,457 $41,457
Community Facilities District No. 8 (Communications
Hill) Fund (373) $41,457 $41,457
8 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Community Facilities District No. 14 (Raleigh-Charlotte) Fund (379) Action Department Use Source
Non-Personal/Equipment (Overage)
This action increases the Transportation Department’s Non- Personal/Equipment appropriation by $43,000, from $76,700 to $119,700, to primarily fund landscape maintenance,
emergency repair and renovation work, critical tree work, and increased water costs. Funding is needed to address one-time renovation costs, including planting and emergency irrigation repairs. Additionally, throughout the year, the Department’s Arborist team identifies high priority tree work, which includes identifying conditions that pose a danger or other potential emergencies. The team identified critical tree work; however, it was not included in the original budget. Furthermore, the non- personal/equipment allocation is used to reimburse the General Fund for the Public Works Department’s support incurred throughout the year for outreach, assessments, and other projects as needed. Lastly, water costs and usage are higher than anticipated due to leaks and damaged irrigation
equipment which have been fixed or replaced. A corresponding decrease to the Ending Fund Balance is recommended to
offset this action.
Transportation
Department
_
$43,000
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset actions recommended in this memorandum.
Transportation
Department
_
($148,000)
Personal Services (Ramac Restroom Repairs)
This action establishes the Public Works Department’s
Personal Services appropriation in the amount of $105,000 to support staff costs associated with the reconstruction of the restroom facility at Ramac Park that was destroyed in a fire in December 2025. The funding will support project
management, site preparation, coordination of temporary restroom accommodations, abatement of fire-damaged
materials and smoke remediation, roof demolition and
reconstruction activities, and oversight of associated
restoration work. A corresponding decrease to the Ending Fund Balance is recommended in this memorandum to offset this action.
Public Works
Department
_
$105,000
Community Facilities District No. 14 (Raleigh-Charlotte) Fund (379) $0 $0
9 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Homeless Housing, Assistance, and Prevention Fund (454) Action Department Use Source
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset the action recommended in this memorandum.
Housing Department
_
($450,000)
Emergency Shelters
This action increases the Emergency Shelters appropriation by $450,000, from $7.1 million to $7.6 million, to fund higher than anticipated shelter operations costs and for unanticipated construction costs associated with development of an interim housing site. This action is offset by a decrease to the Ending Fund Balance as recommended in this memorandum.
Housing Department
_
$450,000
Homeless Housing, Assistance, and Prevention Fund
(454) $0 $0
10 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Housing Trust Fund (440)
Action Department Use Source
Personal Services (Overage)
This action increases the Office of the City Attorney’s Personal Services appropriation by $28,000 to align funding levels with projected personal services costs. The projected overage is primarily due to higher than budgeted salary and benefit costs and changes to assigned staff. A corresponding decrease to the Ending Fund Balance is recommended to
offset this action.
Office of the City
Attorney
_
$28,000
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset the actions recommended in this memorandum.
Housing Department
_
($28,000)
Housing Trust Fund (440) $0 $0
11 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Integrated Waste Management Fund (423)
Action Department Use Source
Non-Personal/Equipment (Overage)
This action increases the Environmental Services
Department’s Non-Personal/Equipment appropriation by $1.0 million to align the budget with anticipated expenditures for the fiscal year. Funding is needed for the following items:
$350,000 for public litter collection hauling costs, driven primarily by events related to Super Bowl LX and the
upcoming FIFA World Cup events; $340,000 for the first
round of the competitive grants under the Zero Waste
Innovation Grant Program to expand local waste reduction initiatives, with contracts finalized in April 2026; $200,000 for Environmental Innovation Center facility improvement
projects, including carpet replacement, roll-up door
replacements, conference room lighting upgrades, plumbing upgrades, bathroom upgrades, and back driveway fence
replacement; and $110,000 for the CART program to cover contractual employees and vehicle rental costs while a vehicle is procured. A corresponding decrease to the Ending Fund Balance is recommended to offset this action.
Environmental
Services Department
_
$1,000,000
Multi-Family Recycle Plus
This action increases the Multi-Family Recycle Plus
appropriation by $1.0 million, from $34.7 million to $35.7 million, to align the budget with anticipated expenditures for the fiscal year. A combination of increased program
participation in the large items collection program and an increase in the number of large items from cleanout events throughout the year has resulted in higher than anticipated costs. A corresponding decrease to the Ending Fund Balance is recommended to offset this action.
Environmental
Services Department
_
$1,000,000
Cal Recycle CRV Grant
This action increases the CalRecycle CRV Grant appropriation by $14,911, from $110,663 to $125,574. A $275,000
CalRecycle grant for multi-family recycling was awarded, the grant-funded activities have been completed, and the final report has been submitted to CalRecycle. However, a prior year encumbrance was liquidated inadvertently, creating a negative balance for the appropriation. This action corrects that negative balance and aligns the budget with actual expenditures. A corresponding decrease to the Ending Fund Balance is recommended to offset this action.
Environmental
Services Department
_
$14,911
Workers' Compensation Claims
This action increases the Workers' Compensation Claims
appropriation by $200,000, from $137,000 to $337,000, to reflect higher than anticipated settlement and regular claim activity for 2025-2026. A corresponding decrease to the Ending Fund Balance is recommended to offset this action.
Environmental
Services Department
_
$200,000
12 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Integrated Waste Management Fund (423)
Action Department Use Source
Banking Services
This action increases the Banking Services appropriation by $5,000, from $200,000 to $205,000. This funding is to support banking and financial services such as general banking and lockbox services, merchant card processing services, and investment custodial services. This action also supports unanticipated increases in city-wide transaction volumes and expanded utilization of payments made in person or via the online payment system throughout the fiscal year. A
corresponding decrease to the Ending Fund Balance is
recommended to offset this action.
Finance Department
_
$5,000
Personal Services (Overage)
This action increases the Public Works Department's Personal Services appropriation by $20,000 to fund higher than
anticipated staff costs for contract/labor compliance and technology service support. A corresponding decrease to the Ending Fund Balance is recommended to offset this action.
Public Works
Department
_
$20,000
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset the actions recommended in this report.
Environmental
Services Department
_
($2,239,911)
Integrated Waste Management Fund (423) $0 $0
13 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Library Parcel Tax Fund (418)
Action Department Use Source
Transfer to the Library Parcel Tax Capital Fund
This action increases the Transfers to the Library Parcel Tax Capital Fund by $576,000, from $1.3 million to $1.9 million, to support unanticipated expenditures for critical capital needs at branch library facilities. A total of $1.4 million is needed for the lighting repairs project, which is funded by the Branch Libraries Bond Projects Fund ($640,000), the Library
Construction and Conveyance Tax Fund ($32,379), and the Library Parcel Tax Capital Fund ($776,000). A corresponding decrease to the Ending Fund Balance is recommended in this memorandum to offset this action.
Library Department
_
$576,000
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset the action recommended in this memorandum.
Library Department
_
($576,000)
Library Parcel Tax Fund (418) $0 $0
14 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Low and Moderate Income Housing Asset Fund (346)
Action Department Use Source
Personal Services (Overage)
This action increases the Finance Department’s Personal Services appropriation by $18,000 to fund higher than
budgeted costs due to lower vacancy savings, positions at a higher salary, and compensation payouts. A corresponding decrease to the Ending Fund Balance is recommended
elsewhere in this memorandum to offset this action.
Finance Department
_
$18,000
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset the actions recommended in this memorandum.
Housing Department
_
($412,000)
Non-Personal/Equipment (Consultant Services)
This action increases the Housing Department's Non-
Personal/Equipment appropriation by $344,000 to account for an increase in consulting services for project financial feasibility and housing site selection software tools. This action is offset by a decrease to the Ending Fund Balance as recommended in this memorandum.
Housing Department
_
$344,000
Personal Services (Overage)
This action increases the Public Works Department's Personal Services appropriation by $50,000 to fund higher than
anticipated staff costs associated with labor compliance oversight for Housing projects. Increased workload was driven by prevailing wage compliance monitoring, certified payroll review, contractor compliance investigations, training and coordination activities, and enforcement support associated with active affordable housing construction projects. A corresponding decrease to the Ending Fund Balance is
recommended to offset this action.
Public Works
Department
_
$50,000
Low and Moderate Income Housing Asset Fund (346) $0 $0
15 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Maintenance District No. 1 (Los Paseos) Fund (352)
Action Department Use Source
Non-Personal/Equipment (Emergency Sidewalk Repairs Costs) This action increases the Non-Personal/Equipment
appropriation in the Maintenance District No. 1 (Los Paseos) Fund by $43,000, from $192,500 to $235,500 to align the budget with anticipated expenditures. In spring 2026, the City received a report from the community concerning damage at several locations, including Avenida Rotella and Vía Colina in the Maintenance District. Subsequently, the Transportation Department's Sidewalk Inspection team conducted an on-site evaluation, which led to emergency sidewalk repairs
completed by a sidewalk repair contractor. This action is offset by a corresponding decrease to the Ending Fund
Balance as recommended in this memorandum.
Transportation
Department
_
$43,000
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset the action recommended in this memorandum.
Transportation
Department
_
($43,000)
Maintenance District No. 1 (Los Paseos) Fund (352) $0 $0 16 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Maintenance District No. 15 (Silver Creek Valley) Fund (368) Action Department Use Source
Non-Personal/Equipment (Contractual Landscape and Tree
Services Costs)
This action increases the Non-Personal/Equipment
appropriation by $100,000, from $1.1 million to $1.2 million, to fund contractual services for increased landscape
maintenance costs, a prior-year accrual for landscape
maintenance, and critical tree work in Maintenance District No. 15 (Silver Creek Valley). Funding is needed to address
contractual service costs for ongoing landscape maintenance that increased by 10.4% from the prior year, which was
accounted for to some extent in the development of the 2026- 2027 Operating Budget. Additionally, the Department did not sufficiently accrue for prior year landscaping costs in 2024- 2025. As a result, the City issued a subsequent payment in 2025-2026 for services. Furthermore, throughout the year, the Department’s Arborist team identifies high priority tree work, which includes identifying conditions that pose a danger or other potential emergencies. The team identified critical tree work; however, it was not included in the original budget. A corresponding decrease to the Ending Fund Balance is
recommended to offset this action.
Transportation
Department
_
$100,000
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset the action recommended in this memorandum.
Transportation
Department
_
($100,000)
Maintenance District No. 15 (Silver Creek Valley) Fund
(368) $0 $0
17 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Maintenance District No. 18 (The Meadowlands) Fund (372) Action Department Use Source
Non-Personal/Equipment (Overage)
This action increases the Non-Personal/Equipment
appropriation by $66,000, from $40,850 to $106,840, to
primarily fund emergency repairs, renovation work, and critical tree work. Funding is needed to address one-time renovations, including planting and landscape design, as well as emergency sidewalk repairs and the replacement of a missing cast-iron sign for the District. Additionally, throughout the year, the Department’s Arborist team identifies high priority tree work, which includes identifying conditions that pose a danger or other potential emergencies. The team identified critical tree work; however, it was not included in the original budget.
Furthermore, the non-personal/equipment allocation is used to reimburse the General Fund for the Public Works
Department’s support incurred throughout the year for
outreach, assessments, and other projects as needed. A
corresponding decrease to the Ending Fund Balance is
recommended to offset this action.
Transportation
Department
_
$66,000
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset the action recommended in this memorandum.
Transportation
Department
_
($66,000)
Maintenance District No. 18 (The Meadowlands) Fund
(372) $0 $0
18 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Multi-Source Housing Fund (448)
Action Department Use Source
Capitol Park Neighborhood Center Improvements
This action establishes the Capitol Park Neighborhood Center Improvements allocation in the amount of $200,000 to fund the conversion of a community center to a childcare center at Capitol Park. The childcare center is anticipated to be operational by fall 2026. This action is offset by a decrease to the Ending Fund Balance as recommended in this
memorandum.
Housing Department
_
$200,000
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset actions recommended in this memorandum.
Housing Department
_
($225,000)
Personal Services (Overage)
This action increases the Office of the City Attorney’s Personal Services appropriation by $25,000 to align funding levels with projected personal services costs. The projected overage is primarily due to higher than budgeted salary and benefit costs and changes to assigned staff. A corresponding decrease to the Ending Fund Balance is recommended to
offset this action.
Office of the City
Attorney
_
$25,000
Multi-Source Housing Fund (448) $0 $0
19 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Municipal Golf Course Fund (518)
Action Department Use Source
Los Lagos Golf Course Repair Projects
This action establishes a Los Lagos Golf Course Repair
Projects appropriation in the amount of $226,000. There have been several instances of stray golf balls from Los Lagos driving range that have caused damage to solar panels and City and employee vehicles at the San José Municipal Water System office. PRNS conducted a golf ball trajectory study and determined that a prompt, short-term action to replace the driving range netting was necessary. This short-term solution will protect Municipal Water employees while the study's findings are reviewed. Once a permanent solution can be executed, recommended actions will be brought forward as part of a future budget process. A corresponding decrease to the Ending Fund Balance is recommended to offset this
action.
Parks, Recreation
and Neighborhood
Services Department
_
$226,000
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset the action recommended in this memorandum.
Parks, Recreation
and Neighborhood
Services Department
_
($226,000)
Municipal Golf Course Fund (518) $0 $0
20 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Planning Development Fee Program Fund (238)
Action Department Use Source
Personal Services (Overage)
This action increases the Office of the City Attorney’s Personal Services appropriation by $33,000 to cover projected costs driven by rising service workload demand. A
corresponding decrease to the Ending Fund Balance is
recommended to offset this action.
Office of the City
Attorney
_
$33,000
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset the action recommended in this memorandum.
Planning, Building
and Code
Enforcement
Department
_
($33,000)
Planning Development Fee Program Fund (238) $0 $0
21 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Public Works Development Fee Program Fund (241)
Action Department Use Source
Personal Services (Overage)/Fee, Rates and Charges (Utility Fee Program)
This action increases the Public Works Development Fee
Program - Personal Services appropriation and the
corresponding revenue estimate for Fees, Rates, and
Charges by $3.0 million to recognize and allocate revenues from higher than anticipated utility permitting activity associated with PG&E, Comcast, Verizon, and other
telecommunications-related projects. Staff anticipates utility permitting activity will continue into 2026-2027; however, activity levels may vary based on project schedules, funding, and utility company priorities. This additional revenue offsets the projected overage in the Public Works Development Fee Program – Personal Services appropriation due to higher-than- anticipated activity in the Utility Fee Program and higher compensated absence costs incurred in 2025- 2026 for paid employee time off, including sick, holiday, vacation, and jury duty leave.
Public Works
Department
_
$3,000,000 $3,000,000
Public Works Development Fee Program Fund (241) $3,000,000 $3,000,000 22 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Public Works Program Support Fund (150)
Action Department Use Source
Personal Services (Overage)
This action increases the Public Works Department's Personal Services appropriation by $400,000 to address projected overages due to higher than anticipated compensated absence costs incurred in 2025-2026 for paid employee time off, including sick, holiday, vacation, and jury duty leave for positions that are funded by various Capital Funds. Public Works Department positions directly charge to capital project budgets for active time in support of project delivery; whereas, undesignated time off is charged to the Public Works Program Support Fund in accordance with an internal cost allocation methodology. A corresponding decrease to the Ending Fund Balance is recommended to offset this action.
Public Works
Department
_
$400,000
Non-Personal/Equipment (Overage)
This action increases the Public Works Department's Non- Personal/Equipment appropriation by $100,000 to support higher than anticipated costs incurred primarily for ergonomic assessments, laptops/computer equipment, and software user licenses. A corresponding decrease to the Ending Fund
Balance is recommended to offset this action.
Public Works
Department
_
$100,000
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset the actions recommended in this memorandum.
Public Works
Department
_
($2,400,000)
Compensated Absences
This action increases the Compensated Time Off appropriation by $3.3 million, from $14.0 million to $17.3 million to reflect higher than budgeted compensated absences. Compensated
absences fund employee time off pay, such as sick, holiday, vacation, and jury duty for positions funded by various Capital Funds. Public Works Department positions charge active project delivery time to capital project budgets while compensated absence costs are charged to the Public Works Program Support Fund in accordance with the department’s internal cost allocation methodology. Staff used leave
balances at a higher rate than anticipated in 2025-2026, resulting in increased expenditures. Corresponding actions to recognize additional revenues from transfers and
reimbursements and a decrease to the Ending Fund Balance are recommended to offset this action.
Public Works
Department
_
$3,300,000
23 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Public Works Program Support Fund (150)
Action Department Use Source
Transfers and Reimbursements (Compensated Absences)
This action increases the revenue estimate for Transfers and Reimbursements by $1.4 million, from $28.5 million to $29.9 million, to recognize additional compensated absences
transfers from various funds. Compensated absences fund employee time off pay, including sick, holiday, vacation, and jury duty leave for positions funded by various Capital Funds. Public Works Department positions charge active
project delivery time to capital project budgets while
compensated absence costs are charged to the Public Works Program Support Fund.
Public Works
Department
_
$1,400,000
Public Works Program Support Fund (150) $1,400,000 $1,400,000 24 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Real Property Transfer Tax Fund (404)
Action Department Use Source
Measure E - Real Property Transfer Tax
This action increases the revenue estimate for Measure E - Real Property Transfer Tax by $14.0 million, from $55.0 million to $69.0 million, to align the budget with the project higher revenue collections, as described in Manager’s Budget
Addendum #27: 2026-2027 Beginning Fund Balance
Adjustments. The increased revenue collection is largely driven by a number of high valuation property sales in excess of $10 million. A corresponding increase to the Ending Fund Balance is recommended to offset this action.
Housing Department
_
$14,000,000
Ending Fund Balance Adjustment
This action increases the Ending Fund Balance to offset the action recommended in this memorandum.
Housing Department
_
$14,000,000
Real Property Transfer Tax Fund (404) $14,000,000 $14,000,000 25 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
San José Clean Energy Operating Fund (501)
Action Department Use Source
PG&E Security Fees
This action increases the PG&E Security Fees appropriation by $125,000, from $1.5 million to $1.6 million. The Energy Department makes monthly payments to Pacific Gas &
Electric (PG&E) for active PG&E electricity meters associated with San José Clean Energy customer accounts. As a result of the errant accrual, an additional payment was made to PG&E in 2025-2026. This adjustment will ensure there is sufficient funding for the 13th payment. A corresponding decrease to the Ending Fund Balance is recommended to
offset this action.
Energy Department
_
$125,101
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset actions recommended in this memorandum.
Energy Department
_
($185,101)
Office of the City Attorney - Personal Services (Overage) This action increases the Office of the City Attorney’s Personal Services appropriation by $42,000 to align funding levels with projected personal services costs. The projected overage is primarily due to higher than budgeted salary and benefit costs. A corresponding decrease to the Ending Fund Balance is recommended to offset this action.
Office of the City
Attorney
_
$42,000
Personal Services (Overage)
This action increases the Information Technology Department Personal Services appropriation by $18,000, from $ 233,799 to $251,799, to account for higher salary and benefit costs. A corresponding decrease to the Ending Fund Balance is
recommended elsewhere in this memorandum.
Information
Technology
Department
_
$18,000
San José Clean Energy Operating Fund (501) $0 $0
26 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
San José Opioid Response Fund (130)
Action Department Use Source
Community Paramedicine - Fire/Revenue from State of
California
This action establishes the Community Paramedicine – Fire appropriation and increases the estimate for Revenue from the State of California in the amount of $145,000. The
Community Paramedicine Pilot Program is intended to explore alternatives to improve patient outcomes and system
efficiency by reducing non-emergency 9-1-1 utilization and expanding access to patient-centered care in community
settings, rather than defaulting to emergency department transport. Leveraging best practices in Mobile Integrated Healthcare and Community Paramedicine, specially trained Emergency Medical Services providers will focus on high- utilizer populations, mental health and substance-use needs, and social service navigation. The Captain position is funded to start in the spring and is responsible for creating the policies and procedures required to launch the program. The remaining costs for the pilot program, including continuing the Captain position, adding 1.0 Fire Engineer and 1.0 Firefighter positions, and funding one-time non-personal/equipment costs, are recommended in the 2026-2027 Proposed Operating
Budget.
Fire Department
_
$145,000 $145,000
San José Opioid Response Fund (130) $145,000 $145,000
27 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
San José-Santa Clara Treatment Plant Operating Fund (513) Action Department Use Source
Personal Services (Overage)
This action increases the Office of the City Attorney’s Personal Services appropriation by $26,500 to align funding levels with projected personal services costs. The projected overage is primarily due to higher than budgeted salary and benefit costs. A corresponding decrease to the Ending Fund Balance is recommended to offset this action.
Office of the City
Attorney
_
$26,500
Non-Personal/Equipment (Reallocation to Inventory)
This action decreases the Environmental Services
Department’s Non-Personal/Equipment appropriation by
$300,000 and reallocates the funding to the Inventory
Appropriation. Funding is available in the Non-
Personal/Equipment appropriation because the new mechanical dewatering facility is not yet fully operational, resulting in savings in hauling costs. A corresponding increase to the Inventory appropriation is recommended to offset this action.
Environmental
Services Department
_
($300,000)
Inventory (Reallocation from Non-Personal/Equipment)
This action increases the Inventory appropriation by $300,000, from $600,000 to $900,000. The increase is needed due to higher-than-anticipated costs to replenish maintenance and operations supplies, such as personal protective equipment, batteries, hardware fittings, and lubricants at the San José- Santa Clara Regional Wastewater Facility. A corresponding decrease to the Non-Personal/Equipment appropriation is recommended to offset this action.
Environmental
Services Department
_
$300,000
Public Works Department - Personal Services (Overage)
This action increases Public Works Department's Personal Services appropriation by $175,000 for labor compliance work at the San José-Santa Clara Regional Wastewater Facility.
The additional costs are primarily due to extensive efforts to ensure compliance with labor laws on active projects. These efforts included developing and conducting training for inspectors, construction managers, and project managers; responding to Public Records Act requests; and managing complex wage theft investigations involving over 60
contractors, certified payroll reviews, and coordination with multiple City departments and consultants. A corresponding action to decrease the Environmental Services Department’s Personal Services appropriation is recommended to offset this action.
Public Works
Department
_
$175,000
28 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
San José-Santa Clara Treatment Plant Operating Fund (513) Action Department Use Source
Non-Personal/Equipment (2 Heavy-Duty Off-Road Tractors) The 2025-2026 Adopted Operating Budget allocated one-time funding of $1.6 million to replace two heavy-duty off-road tractors; however, based on updated pricing received during the procurement process, the cost has increased to $966,000 for each vehicle, plus $200,000 for parts and materials, for a revised cost of $2.1 million. The Non-Personal/Equipment appropriation has sufficient available balance to support the estimated $500,000 needed to procure the tractors.
Environmental
Services Department
_
$0
Personal Services (Savings)
This action decreases the Environmental Services Department Personal Services appropriation by $226,500 to recognize vacancy savings and to offset increases recommended in
this fund. A corresponding increase to the Ending Fund
Balance is recommended to offset this action.
Environmental
Services Department
_
($226,500)
Ending Fund Balance Adjustment
This action Increases the Ending Fund Balance to offset the actions recommended in this report.
Environmental
Services Department
_
$25,000
San José-Santa Clara Treatment Plant Operating Fund
(513) $0 $0
29 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Sewer Service and Use Charge Fund (541)
Action Department Use Source
Personal Services (Overage)
This action increases the Environmental Services
Department’s Personal Services appropriation by $100,000, from $617,062 to $717,062, to align the budget with
anticipated expenditures for the fiscal year. Additional funding is needed to primarily correct a budget misalignment in the Cost Allocation Plan, as well as to cover expenses associated with a temporary position that supported work on a sanitary sewer funding model. The Cost Allocation Plan has been
corrected, and the changes have been incorporated into the 2026-2027 Base Budget. A corresponding decrease to the
Ending Fund Balance is recommended to offset this action.
Environmental
Services Department
_
$100,000
Personal Services (Savings)
This action decreases the Public Works Department's
Personal Services appropriation by $40,000 to recognize vacancy savings and to offset increases recommended in
this fund. A corresponding increase to the Ending Fund
Balance is recommended to offset this action.
Public Works
Department
_
($40,000)
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset the actions recommended in this report.
Environmental
Services Department
_
($60,000)
Sewer Service and Use Charge Fund (541) $0 $0
30 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Storm Sewer Operating Fund (446)
Action Department Use Source
Non-Personal/Equipment (Outside Counsel Services)
This action increases the Office of the City Attorney’s Non- Personal/Equipment appropriation by $50,000 for outside legal services to assess revenue alternatives and develop an
implementation strategy to sustainably fund stormwater
programs. Retaining the law firm will expand the Office of the City Attorney’s capacity to assist the Environmental Services Department in implementing a revenue strategy that
addresses the shortfall in funding for regulatory compliance requirements, ongoing operations and maintenance, and
deferred infrastructure backlog. A corresponding decrease to Polychlorinated Biphenyls Settlement Reserve is
recommended to offset this action.
Office of the City
Attorney
_
$50,000
Personal Services (Overage)
This action increases the Office of the City Attorney’s Personal Services appropriation by $67,000 to align funding levels with projected personal services costs. The anticipated overage is primarily driven by higher than anticipated salary and benefit costs. A corresponding decrease to the Ending Fund Balance is recommended to offset this action.
Office of the City
Attorney
_
$67,000
Polychlorinated Biphenyls Settlement Reserve
This action decreases the Polychlorinated Biphenyls
Settlement Reserve by $50,000, from $3.52 million to $3.47 million. The funds will offset an increase to the Office of the City Attorney’s Non-Personal/Equipment appropriation for outside legal services as discussed above.
Environmental
Services Department
_
($50,000)
Workers' Compensation Claims
This action increases the Workers' Compensation Claims
appropriation by $50,000, from $117,000 to $167,000, to reflect higher than anticipated settlement and regular claim activity for 2025-2026. A corresponding decrease to the Ending Fund Balance is recommended to offset this action.
Environmental
Services Department
_
$50,000
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset the actions recommended in this report.
Environmental
Services Department
_
($117,000)
Storm Sewer Operating Fund (446) $0 $0
31 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Vehicle Maintenance and Operations Fund (552)
Action Department Use Source
Police Vehicle Replacements/Transfers and Reimbursements This action decreases the Police Vehicle Replacements
appropriation by $1.05 million, from $11.87 million to $10.82 million, and the corresponding revenue estimate for Transfers and Reimbursements by $1.05 million. After analyzing vehicle purchase orders and anticipated delivery, one-time savings can be realized without any near-term impacts to the Police Department’s vehicle replacement schedule. The Public Works Department's Fleet Division will continue to fulfill purchase order requests for eligible vehicle replacements in 2026-2027 from ongoing ($7.0 million) and rebudgeted funds ($6.6
million). The replacement schedule will be evaluated annually, and funding adjustments will be made accordingly as part of the annual development of the budget.
Public Works
Department
_
($1,050,000) ($1,050,000)
Vehicle Maintenance and Operations Fund (552) ($1,050,000) ($1,050,000) 32 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Water Utility Fund (515)
Action Department Use Source
Personal Services (Overage)
This action increases the Office of the City Attorney’s Personal Services appropriation by $41,500 to align funding levels with projected personal services costs. The projected overage is primarily due to higher than budgeted salary and benefit costs and changes to assigned staff. A corresponding decrease to the Ending Fund Balance is recommended to
offset this action.
Office of the City
Attorney
_
$41,500
Banking Services
This action increases the Banking Services appropriation by $10,000, from $322,688 to $332,688. This funding is to
support banking and financial services such as general
banking and lockbox services, merchant card processing
services, and investment custodial services. This action also supports unanticipated increases in city-wide transaction volumes and expanded utilization of payments made in person or via the online payment system throughout the fiscal year.
A corresponding decrease to the Ending Fund Balance is
recommended to offset this action.
Finance Department
_
$10,000
Workers' Compensation Claims
This action increases the Workers' Compensation Claims
appropriation by $30,000, from $31,000 to $61,000, to reflect higher than anticipated settlement and regular claim activity for 2025-2026. A corresponding decrease to the Ending Fund Balance is recommended to offset this action.
Environmental
Services Department
_
$40,000
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset the actions recommended in this report.
Environmental
Services Department
_
($51,500)
Workers' Compensation Claims Reserve
This action decreases the Workers' Compensation Claims
Reserve appropriation by $40,000, from $50,000 to $10,000, to reflect higher than anticipated claim activities. A
corresponding increase to the Workers’ Compensation Claims is recommended to offset this action.
Environmental
Services Department
_
($40,000)
Water Utility Fund (515) $0 $0
33 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Willow Glen Community Benefit Improvement District Fund (343) Action Department Use Source
Transfers and Reimbursements (Transfer from the General Fund)
This action decreases the revenue estimate for Transfers and Reimbursements by $642 to align the City’s special
assessments obligation with the Consumer Price Index
adjustment applied on the two City-owned properties within the district boundaries. Special Assessments are collected from property owners within the district boundaries and may only be used for enhanced services and activities such as
maintenance and cleaning of sidewalk areas, information and safety services, beautification activities beyond those provided by the City, and administrative costs. This
adjustment updates the City’s special assessments obligation to reflect the latest approved district assessments for 2025- 2026. A corresponding decrease to the Ending Fund Balance is recommended to offset this action.
Public Works
Department
_
($642)
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset the action recommended in this memorandum.
Public Works
Department
_
($642)
Willow Glen Community Benefit Improvement District
Fund (343) ($642) ($642)
34 2025-2026 Special Funds Recommended Budget Adjustments Summary Year End Adjustments
Workforce Development Fund (290)
Action Department Use Source
SJ Works (Wells Fargo)/Other Revenue
This action increases the SJ Works (Wells Fargo)
appropriation by $34,000 and establishes an estimate for Other Revenue in the same amount to recognize grant funding received from Wells Fargo. The grant provides funding for paid internships as part of the San José Works summer work experience program. The grant was executed in August 2025, and the term extends through August 30, 2028.
City Manager -
Office of Economic
Development and
Cultural Affairs
_
$34,000 $34,000
Workforce Development Fund (290) $34,000 $34,000
35 Capital Funds Recommended Budget Adjustments Summary 2025-2026 Year-End Budget Review
Airport Capital Improvement Fund (520)
Action Department Use Source
Airfield Configuration Updates
This action decreases the Airfield Configurations Updates appropriation by $1.3 million from $6.8 million to $5.4 million to offset a transfer from the Airport Capital Improvement Fund to the Storm Sewer Capital Fund as discussed below.
Airport $(1,316,544)
Transfer to Storm Sewer Capital Fund
This action establishes the Transfer to the Storm Sewer Capital Fund from the Airport Capital Improvement Fund in the amount of $1.3 million. Provisions of the Municipal Regional Stormwater Permit require new and redevelopment projects to create or replace impervious surfaces to incorporate low impact development stormwater treatment systems or pay for an offsite treatment. A Memorandum of Understanding between the Airport and Public Works Departments regarding this provision was drawn up and the Airport will comply with this requirement by paying an in-lieu fee per impervious acre for the Taxiway projects that are budgeted in the Airfield Configuration Updates project. The transfer represents the Airport's contribution toward the River Oaks Stormwater Capture Project and supports stormwater compliance requirements associated with the Airport's Airfield Configuration Updates Project.
$1,316,544
Airport Capital Improvement Fund (520) TOTAL
Finance
1 ATTACHMENT C
Capital Funds Recommended Budget Adjustments Summary
2025-2026 Year-End Budget Review
Airport Renewal and Replacement Fund (527)
Action Department Use Source
Airfield Configurations Updates
This action decreases the Airfield Configurations Updates appropriation by $9.3 million, from $9.5 million to $131,912, due to delays for this project. This action is offset by a corresponding increase to the Ending Fund Balance.
Airport $(9,317,088)
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance by $500,000 to offset the action recommended in this memorandum.
Finance $(500,000)
Transfer in from Airport Surplus Revenue Fund
This action decreases the transfer from the Airport Surplus Revenue Fund by $9.5 million, from $39.4 million to $29.9 million, to reflect a delay in the Consolidated Rental Car Center Accessibility Upgrades project. Corresponding actions in the Airport Revenue Fund and Airport Surplus Revenue Fund are recommended elsewhere in this
memorandum.
Finance $(9,500,000)
Transfer to Storm Sewer Capital Fund
This action establishes the Transfer to the Storm Sewer Capital Fund from the Airport Renewal and Replacement Fund in the amount of $317,088. Provisions of the Municipal Regional Stormwater Permit require new and redevelopment projects to create or replace impervious surfaces to incorporate low impact development stormwater treatment systems or pay for an offsite treatment. A Memorandum of Understanding between the Airport and Public Works Departments regarding this provision was drawn up and the Airport will comply with this requirement by paying an in-lieu fee per impervious acre for the Taxiway projects that are budgeted in the Airfield Configuration Updates project. The transfer represents the Airport's contribution toward the River Oaks Stormwater Capture Project and supports stormwater compliance requirements associated with the Airport's Airfield Configuration Updates Project.
$317,088
Airport Renewal and Replacement Fund (527) TOTAL $(9,500,000) $(9,500,000) Finance
2 Capital Funds Recommended Budget Adjustments Summary
2025-2026 Year-End Budget Review
Branch Libraries Bond Projects Fund (472)
Action Department Use Source
Biblioteca Library Improvements
This action decreases the Biblioteca Library Improvements appropriation by $640,000, from $940,000 to $300,000, to reallocate funding for critical lighting repair projects and related facility infrastructure improvements at various branch library facilities.
Planned Biblioteca Library renovation costs in 2026-2027 and 2027- 2028 are expected to be supported through the Building Forward Library Infrastructure Grant Round 1. This reallocation is not expected to impact the renovation's scope or schedule. A corresponding increase to the Branch Efficiency Projects appropriation is recommended in this memorandum to offset this action.
Library $(640,000)
Branch Efficiency Projects
This action increases the Branch Efficiency Projects appropriation by $640,000, from $17,000 to $657,000, to support critical lighting repair projects and related infrastructure improvements at various branch library facilities. A total of $1.4 million is needed for the lighting repairs project, which is funded by the Branch Libraries Bond Projects Fund ($640,000), the Library Construction and Conveyance Tax Fund ($32,379), and the Library Parcel Tax Capital Fund ($776,000). The project includes the replacement of aging electric panels, controls, and non-functional lighting fixtures for which replacement parts are unavailable with modern LED lighting systems. These lighting repairs and updates are critical to library branches remaining open due to safety hazards associated with lack of indoor lighting. A corresponding action to decrease the Biblioteca Library Improvements appropriation is recommended to reallocate funds to this project.
Library $640,000
Branch Libraries Bond Projects Fund (472) TOTAL
3 Capital Funds Recommended Budget Adjustments Summary
2025-2026 Year-End Budget Review
Construction Excise Tax Fund (465)
Action Department Use Source
Bridge Maintenance and Repair
This action increases the Bridge Maintenance and Repair appropriation by $58,000, from $200,000 to $258,000, to align funding levels with projected personal services costs to deliver emergency bridge repairs.
The overage is primarily due to emergency bridge repair work on San Felipe Road. In addition, funding is provided for activities such as training and paid leave absences that are ineligible to be funded by the Measure T – Bridges project in the Public Safety and Infrastructure Bond Fund. This action is offset by a corresponding decrease to the Ending Fund Balance as recommended in this memorandum.
Transportation $58,000
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset the action recommended in this memorandum.
Finance $(58,000)
Construction Excise Tax Fund (465) TOTAL
4 Capital Funds Recommended Budget Adjustments Summary
2025-2026 Year-End Budget Review
Council District 7 Construction and Conveyance Tax Fund (385) Action Department Use Source
Elia Park Development
This action increases the Elia Park Development allocation by $27,000, from $387,000 to $414,000, to reflect the acceleration of the project schedule from 2026-2027 to 2025-2026. A corresponding action to decrease the Ending Fund Balance is recommended in this memorandum to offset this action.
Parks, Recreation
and Neighborhood
Services
$27,000
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset the action recommended in this memorandum.
Finance $(27,000)
Council District 7 Construction and Conveyance Tax Fund (385) TOTAL
5 Capital Funds Recommended Budget Adjustments Summary
2025-2026 Year-End Budget Review
Lake Cunningham Fund (462)
Action Department Use Source
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset the action recommended in this memorandum.
Finance $(42,000)
Lake Cunningham Park Settlement
This action establishes the Lake Cunningham Park Settlement appropriation in the amount of $42,000. On April 28, 2026, the City Council approved the settlement to resolve the litigation filed by contractor for the construction of the Lake Cunningham Bike Park in 2017 for a total payment of $675,000. The settlement will be funded by the Lake Cunningham Fund ($42,000), the Subdivision Park Trust Fund ($303,000), and the General Fund ($330,000). A corresponding action to decrease the Ending Fund Balance is recommended in this memorandum.
$42,000
Lake Cunningham Fund (462) TOTAL
Parks, Recreation
and Neighborhood
Services
6 Capital Funds Recommended Budget Adjustments Summary
2025-2026 Year-End Budget Review
Library Construction and Conveyance Tax Fund (393)
Action Department Use Source
Branch Efficiency Projects
This action increases the Branch Efficiency Projects appropriation by $32,379, from $115,000 to $147,379, to support lighting infrastructure repairs and related infrastructure improvement work at various branch library facilities. A total of $1.4 million is needed for the lighting repairs project, which is funded by the Branch Libraries Bond Projects Fund ($640,000), the Library Construction and Conveyance Tax Fund ($32,379), and the Library Parcel Tax Capital Fund ($776,000). This additional funding will support work at various branch libraries to replace aging electrical panels, controls, and non-functional lighting fixtures for which replacement parts are unavailable with modern LED lighting systems. A corresponding decrease to the Ending Fund Balance is recommended in this memorandum to offset this action.
Library $32,379
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset the action recommended in this memorandum.
Finance $(32,379)
Library Construction and Conveyance Tax Fund (393) TOTAL 7 Capital Funds Recommended Budget Adjustments Summary
2025-2026 Year-End Budget Review
Library Parcel Tax Capital Fund (483)
Action Department Use Source
Branch Efficiency Projects
This action establishes the Branch Efficiency Projects appropriation in the amount of $776,000 to support one-time lighting repair projects and related infrastructure improvements at various branch library facilities.
Funding for this action is supported by a $576,000 transfer from the Library Parcel Tax Operating Fund and a $200,000 reallocation of vacancy savings from the Facilities Management appropriation. This additional funding will support work at various branch libraries to replace aging electric panels, controls, and non-functional lighting fixtures for which replacement parts are unavailable with modern LED lighting systems. These lighting repairs and updates are critical to library branches remaining open due to safety hazards associated with a lack of indoor lighting. A total of $1.4 million is needed for the lighting repairs project, which is funded by the Branch Libraries Bond Projects Fund ($640,000), the Library Construction and Conveyance Tax Fund ($32,379), and the Library Parcel Tax Capital Fund ($776,000). A corresponding decrease to the Facilities Management appropriation and increase to the Transfers and Reimbursement estimate are recommended in this memorandum to offset this action.
Library $776,000
Facilities Management
This action decreases the Facilities Management appropriation by $200,000, from $300,000 to $100,000, to recognize vacancy savings associated with a limit-dated Principal Engineer/Architect in the Public Works Department, originally planned to support the implementation of the Library Facilities Master Plan. This position could not be filled and the associated work has been reorganized and absorbed by staff in Public Works Department. A corresponding increase to the Branch Efficiency Projects appropriation is recommended in this memorandum to reallocate the savings from this project.
Library $(200,000)
Transfers and Reimbursements (Transfer from the Library Parcel Tax Fund)
This action increases the Transfers and Reimbursements estimate by $576,000, from $1.3 million to $1.9 million, from the Library Parcel Tax Operating Fund. The funding will support critical capital needs at branch library facilities. A total of $1.4 million is needed for the lighting repairs project, which is funded by the Branch Libraries Bond Projects Fund ($640,000), the Library Construction and Conveyance Tax Fund ($32,379), and the Library Parcel Tax Capital Fund ($776,000). A corresponding increase to the Branch Efficiency Projects appropriation is recommended in this memorandum to offset this action.
Finance $576,000
Library Parcel Tax Capital Fund (483) TOTAL $576,000 $576,000 8 Capital Funds Recommended Budget Adjustments Summary
2025-2026 Year-End Budget Review
Measure T: Public Safety and Infrastructure Bond Fund (498) Action Department Use Source
Measure T - Fire Station 8 Relocation
This action increases the Measure T - Fire Station 8 Relocation appropriation by $148,000, from $1.1 million to $1.2 million, due to project schedule delays and additional project oversight requirements.
The project’s original completion date of March 2025 has been extended to July 2026 due to unforeseen site conditions discovered during construction, additional PG&E scope of work, procurement delays for materials, and other construction-related impacts. Additionally, the extended project schedule resulted in the need for additional consultant services, inspections, and oversight by City staff to support continued project delivery activities in 2025-2026. A corresponding decrease to the Measure T - Program Reserve (Public Safety) is recommended to offset this action.
Public Works $148,000
Measure T - Flood Prevention Improvements
This action establishes the Measure T – Flood Prevention Improvements appropriation in the amount of $3.3 million to provide funding for flood prevention and storm drainage capacity improvement projects identified in the 2026 Deferred Maintenance and Infrastructure Backlog Report. There are project savings from the Measure T - Storm Drain Improvements at Charcot Avenue project because only Package 1 ($23.9 million) was completed with the existing funding. Package 1 constructed approximately 4,200 linear feet of large-diameter storm pipe and provides the majority of the planned flood protection benefits for the system. Package 2 included the construction of approximately 3,100 additional linear feet of large-diameter storm pipe; however, not enough Measure T funding remained to complete the design and construction of the next phase of work. A corresponding recommendation to decrease the Measure T - Storm Drain
Improvements at Charcot Avenue appropriation is included in this memorandum.
Public Works $3,300,000
Measure T - Police Air Support Hangar
This action increases the Measure T - Police Air Support Hangar appropriation by $361,000, from $1.3 million to $1.6 million, due to project schedule delays, expanded project scope requirements, and continued construction administration needs. The project’s original completion date of April 2025 has been extended to August 2026 due to unforeseen site conditions discovered during construction, client- requested expansion of the hangar bay door, addition of a fire foam suppression system, procurement delays for materials, and delays associated with PG&E coordination. Additionally, the extended project schedule resulted in the need for additional consultant services, inspections, and oversight by City staff to support continued project delivery activities in 2025-2026. A corresponding decrease to the Measure T - Program Reserve (Public Safety) is recommended to offset this action.
Public Works $361,000
Measure T - Program Reserve (Public Safety)
This action decreases the Measure T - Program Reserve (Public Safety) to offset the action recommended in this memorandum.
Public Works $(509,000)
9 Capital Funds Recommended Budget Adjustments Summary
2025-2026 Year-End Budget Review
Measure T: Public Safety and Infrastructure Bond Fund (498) Action Department Use Source
Measure T - Storm Drain Improvements at Charcot Avenue
This action decreases the Measure T – Storm Drain Improvements at Charcot Avenue appropriation by $3.3 million due to project savings associated with revised scope as described above. A corresponding recommendation to establish the Measure T - Flood Prevention Improvements appropriation is included in this memorandum.
Public Works $(3,300,000)
Measure T: Public Safety and Infrastructure Bond Fund (498) TOTAL
10 Capital Funds Recommended Budget Adjustments Summary 2025-2026 Year-End Budget Review
Parks City-Wide Construction and Conveyance Tax Fund (391) Action Department Use Source
Ending Fund Balance Adjustment
This action increases the Ending Fund Balance to offset the action recommended in this memorandum.
Finance $211,000
Happy Hollow Park and Zoo Exhibit Improvements
This action increases the Happy Hollow Park and Zoo Exhibit Improvements appropriation by $50,000, from $831,000 to $881,000, for unanticipated construction costs of a night house for the Fossa exhibit, which is anticipated to be completed by June 2026. A corresponding action to decrease the Ending Fund Balance is recommended in this memorandum to offset this action.
Parks, Recreation
and Neighborhood
Services
$50,000
Other Revenue (Happy Hollow Park and Zoo Exhibit Improvements) This action increases the estimate for Other Revenue by $261,000 to recognize funds from a resolution of a dispute with the contractor for the construction of a night house for the Fossa exhibit at Happy Hollow Park and Zoo. On December 9, 2025, City Council approved the contract termination of the Happy Hollow Park and Zoo Fossa Night House Project due to contractor performance issues and their failure to complete construction in accordance with contract requirements. A corresponding action to increase the Ending Fund Balance is recommended in this memorandum to offset this action.
$261,000
Parks City-Wide Construction and Conveyance Tax Fund (391) TOTAL
$261,000 $261,000
Parks, Recreation
and Neighborhood
Services
11 Capital Funds Recommended Budget Adjustments Summary 2025-2026 Year-End Budget Review
Service Yards Construction and Conveyance Tax Fund (395) Action Department Use Source
2021A Arbitrage Reserve
This action establishes the 2021A Arbitrage Reserve in the amount of $521,000 associated with the Service Yards Lease Revenue Bonds 2021A. Due to the City’s inability to fully expend tax-exempt bond proceeds within the required three-year spending period, excess interest earnings must be reserved for potential arbitrage rebate obligations and related Internal Revenue Service compliance requirements.
Corresponding decreases to the Central Service Yard - Bldg. F Expansion and Central Service Yard - Service Yards Generators Replacement allocations are recommended to offset this action. $521,000
Central Service Yard - Bldg. F Expansion
This action eliminates the Central Service Yard - Bldg. F Expansion appropriation of $207,000 due to revised project cost estimates and funding constraints within the fund. Updated estimates determined that the project would require significantly more funding than originally anticipated and cannot be supported with the current amount of available funding sources. As a result, the funding for this project will be reallocated to support arbitrage obligations associated with the Service Yards Lease Revenue Bonds 2021A. A corresponding increase to the 2021A Arbitrage Reserve is recommended to offset this action.
Public Works $(207,000)
Central Service Yard - Service Yards Generators Replacement This action decreases Central Service Yard - Service Yards Generators Replacement appropriation by $335,000, from $556,000 to $221,000, to reflect project savings due to lower-than-anticipated soft costs and unused project contingency following completion of the project. The full intended project scope was completed, and approximately 40% of the project contingency was utilized during construction. Of the total savings, $314,000 is recommended to be used to support arbitrage obligations associated with the Service Yards Lease Revenue Bonds 2021A. Corresponding actions to establish the 2021A Arbitrage Reserve and increase the Ending Fund Balance are recommended to offset this action.
Public Works $(335,000)
Ending Fund Balance Adjustment
This action increases the Ending Fund Balance to offset the actions recommended in this memorandum.
Finance $21,000
Service Yards Construction and Conveyance Tax Fund (395) TOTAL Public Works
12 Capital Funds Recommended Budget Adjustments Summary 2025-2026 Year-End Budget Review
State Gas Tax Pavement Maintenance Fund (480)
Action Department Use Source
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset the action recommended in this memorandum.
Finance $(994,940)
Pavement Maintenance - State Gas Tax
This action increases the Pavement Maintenance – State Gas Tax appropriation by $944,940, from $7.7 million to $8.6 million, due to higher than anticipated costs for pavement maintenance. Funding will help ensure the repair of potholes, debris hauling, and pay for vehicle operating and maintenance costs. This action is offset by a corresponding decrease to the Ending Fund Balance as recommended in this memorandum.
Transportation $994,940
State Gas Tax Pavement Maintenance Fund (480) TOTAL
13 Capital Funds Recommended Budget Adjustments Summary 2025-2026 Year-End Budget Review
Storm Sewer Capital Fund (469)
Action Department Use Source
Ending Fund Balance Adjustment
This action Increases the Ending Fund Balance to offset the actions recommended in this memorandum.
Finance $1,150,000
Green Infrastructure Improvements
This action establishes the Green Infrastructure Improvements appropriation in the amount of $1.6 million. As discussed previously, $1.6 million in Airport funds will be transferred into this fund to represent the Airport's contribution toward the River Oaks Stormwater Capture Project and to support stormwater compliance requirements associated with the Airport's Airfield Configuration Updates Project.
Since the River Oaks Stormwater Capture Project was completed, this funding will enable the Public Works Department to continue clean water projects. Work may include, but is not limited to, a new regional stormwater capture project at Guadalupe Gardens, coordination on potential partnership projects with Santa Clara Valley Water District and Santa Clara County, and development of an Alternate Compliance Program. An increase to the revenue estimate for Transfer and Reimbursements is recommended to offset this action.
Public Works $1,633,632
Large Trash Capture Devices
This action increases the Large Trash Capture Devices appropriation by $500,000, from $2.5 million to $3.0 million. The increase is needed for contract bids that came in higher than estimated. The total project cost is increasing from $3.0 million to $3.5 million, with all costs expected to be reimbursed by Caltrans. A corresponding decrease to the Ending Fund Balance is recommended to offset this action.
Public Works $500,000
Large Trash Capture Devices Phase IX Feasibility Study
This action increases the Large Trash Capture Devices Phase IX Feasibility Study appropriation by $700,000, from $100,000 to $800,000. The increase is needed for staff time related to developing an agreement with the California Department of Transportation (Caltrans) for large trash capture devices that will treat stormwater from the Caltrans right-of-way. Staff activities include providing maps to Caltrans, early scope design, and project feasibility analysis. The agreement is anticipated to be finalized by the end of December 2026.
These costs are expected to be reimbursed by Caltrans as part of the approved agreement. A corresponding decrease to the Ending Fund Balance is recommended to offset this action.
Public Works $700,000
Small Trash Capture Devices
This action eliminates funding of $2.6 million for the Small Trash Capture Devices project. The $5.0 million project was completed under budget, and $2.6 million in savings is available. A corresponding increase to the Ending Fund Balance is recommended to offset this action.
Public Works $(2,600,000)
Storm Sewer Improvements
This action increases the Storm Sewer Improvements appropriation by $250,000, from $250,000 to $500,000. An increase is needed to cover increased project management costs. A corresponding decrease to the Ending Fund Balance is recommended to offset this action.
Public Works $250,000
14 Capital Funds Recommended Budget Adjustments Summary 2025-2026 Year-End Budget Review
Storm Sewer Capital Fund (469)
Action Department Use Source
Transfers and Reimbursements (Transfer from Airport Capital Improvement Fund)
This action increases the revenue estimate for Transfers and Reimbursements by $1.3 million to recognize a transfer from the Airport Capital Improvement Fund. A Memorandum of Understanding between the Airport and Public Works Departments regarding provisions of the Municipal Regional Stormwater Permit was drawn up, and the Airport will comply with the permit requirements by paying an in-lieu fee per impervious acre for the Taxiway projects that are budgeted in the Airfield Configuration Updates project. The transfer represents the Airport's contribution toward the River Oaks Stormwater Capture Project and supports stormwater compliance requirements associated with the Airport's Airfield Configuration Updates Project. The total transfer amount is $1.6 million, consisting of $1.3 million from the Airport Capital Improvement Fund and $317,088 from the Airport Renewal and Replacement Fund. A Green Infrastructure Improvements appropriation is recommended to be established to offset this action.
Finance $1,316,544
Transfers and Reimbursements (Transfer from Airport Renewal and Replacement Fund)
This action increases the revenue estimate for Transfers and Reimbursements by $317,088 to recognize a transfer from the Airport Renewal and Replacement Fund. A Memorandum of Understanding between the Airport and Public Works Departments regarding provisions of the Municipal Regional Stormwater Permit was drawn up, and the Airport will comply with the permit requirements by paying an in-lieu fee per impervious acre for the Taxiway projects that are budgeted in the Airfield Configuration Updates project. The transfer represents the Airport's contribution toward the River Oaks Stormwater Capture Project and supports stormwater compliance requirements associated with the Airport's Airfield Configuration Updates Project. The total transfer amount is $1.6 million, consisting of $1.3 million from the Airport Capital Improvement Fund and $317,088 from the Airport Renewal and Replacement Fund. A Green Infrastructure Improvements appropriation is recommended to be established to offset this action.
Finance $317,088
Storm Sewer Capital Fund (469) TOTAL $1,633,632 $1,633,632 15 Capital Funds Recommended Budget Adjustments Summary 2025-2026 Year-End Budget Review
Subdivision Park Trust Fund (375)
Action Department Use Source
Alma Community Center HVAC Replacement
This action establishes the Alma Community Center HVAC
Replacement appropriation in the amount of $160,000 to replace the heating, ventilation, and air conditioning unit at the Alma Community Center as it's beyond its useful life and will ensure proper air and temperature control at the center. This project is anticipated to be completed by June 2026. A corresponding action to decrease the Future PDO/PIO Projects Reserve is recommended in this
memorandum to offset this action.
$160,000
Future PDO/PIO Projects Reserve
This action decreases the Future PDO/PIO Projects Reserve to offset the actions recommended in this memorandum.
Parks, Recreation
and Neighborhood
Services
$(969,000)
Lake Cunningham Park Settlement
This action establishes the Lake Cunningham Park Settlement appropriation in the amount of $303,000. On April 28, 2026, the City Council approved the settlement to resolve the litigation filed by a contractor for the construction of the Lake Cunningham Bike Park in 2017 for a total payment of $675,000. The settlement will be funded by the Lake Cunningham Fund ($42,000), the Subdivision Park Trust Fund ($303,000), and the General Fund ($330,000). A corresponding action to decrease the Future PDO/PIO Projects Reserve is recommended in this memorandum to offset this action.
$303,000
Northside Community Center HVAC Improvement
This action establishes the Northside Community Center HVAC Improvement appropriation in the amount of $256,000 to replace a chiller component, which is an integral part of the heating, ventilation, and air conditioning system as it's beyond its useful life. This project is anticipated to be completed by June 2026. A corresponding action to decrease the Future PDO/PIO Projects Reserve is recommended in this memorandum to offset this action.
$256,000
Ramac Park Restroom Reconstruction
This action establishes the Ramac Park Restroom Reconstruction appropriation in the amount of $250,000 for critical electrical work and restroom reconstruction due to a fire that occurred in December 2025.
A corresponding action to decrease the Future PDO/PIO Projects Reserve is recommended in this memorandum to offset this action. $250,000
Subdivision Park Trust Fund (375) TOTAL
Parks, Recreation
and Neighborhood
Services
Parks, Recreation
and Neighborhood
Services
Parks, Recreation
and Neighborhood
Services
Parks, Recreation
and Neighborhood
Services
16 Capital Funds Recommended Budget Adjustments Summary 2025-2026 Year-End Budget Review
Underground Utility Fund (416)
Action Department Use Source
Ending Fund Balance Adjustment
This action decreases the Ending Fund Balance to offset the action recommended in this memorandum.
Finance $(5,000)
Underground Utility Administration (20B)
This action increases the Underground Utility Administration (20B) appropriation by $5,000, from $120,000 to $125,000, to fund additional staff time and consultant support associated with extended project development activities for the Rule 20B Underground Utility – McKee/Jose Figueres project. The project experienced a longer-than- anticipated design period due to PG&E updating its design during the project development phase, which required additional coordination and revisions to incorporate PG&E’s updated design into the 95% composite plan. Additional work included reviewing and revising composite plans, updating design details, and coordinating changes to ensure consistency with updated PG&E design requirements. A corresponding decrease to the Ending Fund Balance is recommended to offset this action.
Public Works $5,000
Underground Utility Fund (416) TOTAL
17 Capital Funds Recommended Budget Adjustments Summary 2025-2026 Year-End Budget Review
Water Utility Capital Fund (500)
Action Department Use Source
Advanced Metering Infrastructure Implementation
This action eliminates the Advanced Metering Infrastructure Implementation appropriation in the amount of $18.0 million. Due to project delays, no project activity is planned for this fiscal year. The project is anticipated to begin in 2026-2027, and the funding has been programmed into the 2026-2027 Proposed Capital Budget. A corresponding increase to the Ending Fund Balance is recommended to offset this action.
Environmental
Services
$(18,000,000)
Debt Service
This action decreases the Debt Service appropriation by $1.5 million, from $3.5 million to $2.0 million, for debt service costs related to the Water Resources Administration and Operations Facility (WRAOF) and the Advanced Metering Infrastructure Implementation (AMI) projects.
Financing is not needed in 2025-2026 but is anticipated for 2026-2027 for the AMI project since the project has been delayed; therefore, the debt service cost has been revised based on updated cash flow projections. Additionally, the WRAOF was partially financed using commercial paper. Subsequently, long-term bonds have been issued for the WRAOF project, and the commercial paper that was used initially has been retired. The updated debt service costs have also been incorporated into the 2027-2031 Capital Improvement Program. A corresponding increase to the Ending Fund Balance is recommended to offset this action.
Environmental
Services
$(1,508,000)
Ending Fund Balance Adjustment
This action Increases the Ending Fund Balance to offset the actions recommended in this memorandum.
Finance $19,508,000
Water Utility Capital Fund (500) TOTAL
18 General Fund
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
USE SOURCE NET COST
Department/Proposal
Personal
Services
Non-
Personal/
Equipment
T
otal Use
Revenue
Beg Fund
Balance
DEP
ARTMENTAL EXPENSES
City Manager - Of
fice of Economic
Development and Cultural Affairs
Required Technical-Rebalancing Actions
Non-Personal/Equipment
(Microbusiness Start-Up Grants) - - - - - -
Energy Department
Clean-Up Actions
T
ech Adjust: Personal Services
(Overage - Salary and Benefits
Program) $20,000 - $20,000 - - $20,000
Energy Department
Required T
echnical-Rebalancing Actions Personal Services (Overage) $30,000 - $30,000 - - $30,000 Finance Department
Clean-Up Actions
Tech Adjust: Personal Services
(Overage - Salary and Benefits
Program)
$50,000 - $50,000 - - $50,000
Fire Department
Clean-Up Actions
Tech Adjust: Personal Services
(Reallocation from Salary and
Benefits to Overtime of $8.0
million)
- - - - - -
Fire Department
Grants-Reimbursements-Fees
Non-Personal/Equipment/Revenue
from State of California (Strike
T
eam Reimbursement) - $283,032 $283,032 $283,032 - -
Personal Services/Revenue from
State of California (Strike T
eam
Reimbursement) $2,202,636 - $2,202,636 $2,202,636 - -
Fire Department
Required T
echnical-Rebalancing Actions
Non-Personal/Equipment
(Firefighter Academy T
urnouts) - $174,000 $174,000 - - $174,000
Personal Services (Overage) $9,500,000 - $9,500,000 - - $9,500,000 Personal Services (Retirement
Calculation) $3,000,000 - $3,000,000 - - $3,000,000
1 ATTACHMENT D
General Fund
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
USE SOURCE NET COST
Department/Proposal
Personal
Services
Non-
Personal/
Equipment
Total Use
Revenue
Beg Fund
Balance
DEPARTMENTAL EXPENSES
Housing Department
Required Technical-Rebalancing Actions
Non-Personal/Equipment
(Homeless Management
Information System & Compliance
Monitoring)
- $1,200,000 $1,200,000 - - $1,200,000
Mayor & City Council
Grants-Reimbursements-Fees
Council District #01/Other Revenue
(Sponsorship) $9,200 - $9,200 $9,200 - -
Council District #03/Other Revenue
(Sponsorship) $5,000 - $5,000 $5,000 - -
Council District #05/Other Revenue
(Sponsorship) $92,725 - $92,725 $92,725 - -
Council District #08/Other Revenue
(Sponsorship) $33,000 - $33,000 $33,000 - -
Council District #09/Other Revenue
(Sponsorship) $35,000 - $35,000 $35,000 - -
Office of the Mayor/Other
Revenue (Sponsorship) $390,000 - $390,000 $390,000 - -
Office of the City Attorney
Required Technical-Rebalancing Actions Non-Personal/Equipment (Overage) - $180,000 $180,000 - - $180,000 Personal Services (Vacancy
Savings) ($180,000) - ($180,000) - - ($180,000)
Office of the City Manager
Clean-Up Actions
Tech Adjust: Non-
Personal/Equipment (Reallocation
to Labor/Employee Relations
Consultant Funding)
- ($100,000) ($100,000) - - ($100,000)
Tech Adjust: Personal Services
(Overage - Salary and Benefits
Program)
$95,000 - $95,000 - - $95,000
Office of the City Manager
Required Technical-Rebalancing Actions Non-Personal/Equipment (Savings) - ($220,000) ($220,000) - - ($220,000) 2 General Fund
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
USE SOURCE NET COST
Department/Proposal
Personal
Services
Non-
Personal/
Equipment
T
otal Use
Revenue
Beg Fund
Balance
DEP
ARTMENTAL EXPENSES
Personal Services (Office of City
Manager - Road to
2026 Executive Leadership)
$70,000 - $70,000 - - $70,000
Personal Services (Overage) $150,000 - $150,000 - - $150,000 Parks, Recreation and Neighborhood
Services Department
Grants-Reimbursements-Fees
Personal Services/Revenue from
State of California (Blight
Eradication)
$55,000 - $55,000 $55,000 - -
Parks, Recreation and Neighborhood
Services Department
Required T
echnical-Rebalancing Actions
Non-Personal/Equipment (BSJ
Encampment Management
Savings)
- ($350,000) ($350,000) - - ($350,000)
Planning, Building and Code Enforcement
Department
Clean-Up Actions
Tech Adjust: Development Fee
Program - Shared Resources
Personal Services (Overage)
$2,000 - $2,000 - - $2,000
Planning, Building and Code Enforcement
Department
Required T
echnical-Rebalancing Actions Non-Personal/Equipment (Overage) - $500,000 $500,000 - - $500,000 Personal Services (Savings) ($500,000) - ($500,000) - - ($500,000) Police Department
Clean-Up Actions
T
ech Adjust: Personal Services
(Reallocation from Salary and
Benefits to Overtime of $15.0
million)
- - - - - -
Police Department
Grants-Reimbursements-Fees
Personal Services/Fees, Rates,
and Charges (Billable Festivals) $140,000 - $140,000 $140,000 - - Personal Services/Revenue from
Federal Government (United States
Marshal Service Regional Fugitive
T
ask Force) $250,000 - $250,000 $250,000 - -
3 General Fund
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
USE SOURCE NET COST
Department/Proposal
Personal
Services
Non-
Personal/
Equipment
Total Use
Revenue
Beg Fund
Balance
DEPARTMENTAL EXPENSES
Personal Services/Revenue from
Local Agencies (2026 FIFA World
Cup)
$250,000 - $250,000 $250,000 - -
Police Department
Required Technical-Rebalancing Actions
Non-Personal/Equipment - Police
Vehicle Replacements and
Operations & Maintenance
- ($1,050,000) ($1,050,000) - - ($1,050,000)
Non-Personal/Equipment (Overage) - $1,050,000 $1,050,000 - - $1,050,000 Personal Services (Overage) $10,500,000 - $10,500,000 - - $10,500,000 Personal Services (Overtime for
Encampment Management) $350,000 - $350,000 - - $350,000 Public Works Department
Grants-Reimbursements-Fees
Personal Services/Other Revenue
(Market Access Grant Program) $123,000 - $123,000 $123,000 - - Public Works Department
Required Technical-Rebalancing Actions
Janitorial Services - Non-
Personal/Equipment (Savings) - ($625,000) ($625,000) - - ($625,000) Non-Personal/Equipment (Savings) - ($1,200,000) ($1,200,000) - - ($1,200,000) Personal Services (Overage) $2,300,000 - $2,300,000 - - $2,300,000 Sum([1])
DEPARTMENTAL EXPENSES
TOTAL $28,972,561 ($157,968) $28,814,593 $3,868,593 - $24,946,000 4 General Fund
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
USE SOURCE NET COST
Department/Proposal
Personal
Services
Non-
Personal/
Equipment
Total Use
Revenue
Beg Fund
Balance
CITY-WIDE EXPENSES
Clean-Up Actions
Tech Adjust: Labor/Employee
Relations Consultant Funding
(Reallocation from Office of the
City Manager Non-
Personal/Equipment)
a - $100,000 $100,000 - - $100,000
Grants-Reimbursements-Fees
Californians4All Phase 4 Climate
Change Pathway - PRNS/Revenue
from State of California
a - $12,738 $12,738 $12,738 - -
Californians4All Phase 4 Learning
Pathway - Library/Revenue from
State of California
a - $31,787 $31,787 $31,787 - -
Library Grants/Revenue from State
of California (Lunch at the Library) a - $45,897 $45,897 $45,897 - - Northern California Regional
Intelligence Center – Police
2024/Revenue from Federal
Government
a $141,569 - $141,569 $141,569 - -
Seeds of Peace Monument
Project/Other Revenue a - $150,000 $150,000 $150,000 - - Sidewalk Repairs/Other Revenue a - $200,000 $200,000 $200,000 - - SJPL Foundation Grants/Other
Revenue a - $21,000 $21,000 $21,000 - -
SJPL Foundation Grants - Coding
5K/Other Revenue a $176,300 - $176,300 $176,300 - -
Required Technical-Rebalancing Actions Banking Services a - $50,000 $50,000 - - $50,000 Commercial Paper Program Fees a - $30,000 $30,000 - - $30,000 Coyote Creek Project Reaches 5-7
(Valley Water) a - ($325,000) ($325,000) - - ($325,000) Homeless Rapid Rehousing a - ($1,200,000) ($1,200,000) - - ($1,200,000) 5 General Fund
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
USE SOURCE NET COST
Department/Proposal
Personal
Services
Non-
Personal/
Equipment
Total Use
Revenue
Beg Fund
Balance
CITY-WIDE EXPENSES
Oversized Vehicle Regulation Pilot
Program a - $150,000 $150,000 - - $150,000
Property Tax Administration Fee a - $456,000 $456,000 - - $456,000 Workers' Compensation Claims -
Fire a - $350,000 $350,000 - - $350,000
Workers' Compensation Claims -
Police a - $500,000 $500,000 - - $500,000
SpecFund Adjustments Ending Fund Balance Adjustment a - - - - - - Sum([1]) CITY-WIDE EXPENSES TOTAL $317,869 $572,422 $890,291 $779,291 - $111,000 6 General Fund
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
USE SOURCE NET COST
Department/Proposal
Personal
Services
Non-
Personal/
Equipment
Total Use
Revenue
Beg Fund
Balance
CAPITAL PROJECT EXPENSES
Clean-Up Actions
Tech Adjust: Capital Program and
Public Works Department Support
Service Costs (PWCAP Overage)
a - $80,000 $80,000 - - $80,000
Required Technical-Rebalancing Actions
City Hall Water Intrusion
Remediation a - $150,000 $150,000 - - $150,000
Closed Landfill Compliance a - $200,000 $200,000 - - $200,000 Fire Training Center Relocation a - $70,000 $70,000 - - $70,000 Unanticipated/Emergency
Maintenance a - $150,000 $150,000 - - $150,000
Sum([1])
CAPITAL PROJECTS EXPENSES
TOTAL - $650,000 $650,000 - - $650,000
7 General Fund
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
USE SOURCE NET COST
Department/Proposal Personal
Services
Non-
Personal/
Equipment
Total Use
Revenue Beg Fund
Balance
EARMARKED RESERVES
Required Technical-Rebalancing Actions
2025-2026 Ending Fund Balance
Reserve a - $14,340,642 $14,340,642 - - $14,340,642
Budget Stabilization Reserve a - $45,000,000 $45,000,000 - - $45,000,000 Revenue Loss Reserve a - ($75,000,000) ($75,000,000) - - ($75,000,000) Revenue Loss Reserve (Dispute
Resolution) a - $1,880,351 $1,880,351 - - $1,880,351
Salaries and Benefits Reserve a - ($3,000,000) ($3,000,000) - - ($3,000,000) Sum([1]) EARMARKED RESERVES TOTAL - ($16,779,007) ($16,779,007) - - ($16,779,007) 8 General Fund
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
USE SOURCE NET COST
Department/Proposal
Personal
Services
Non-
Personal/
Equipment
Total Use
Revenue
Beg Fund
Balance
TRANSFERS
Required Technical-Rebalancing Actions
Transfer to the Willow Glen
Community Benefit Improvement
District Fund
- ($642) ($642) - - ($642)
Sum([1]) TRANSFERS TOTAL - ($642) ($642) - - ($642)
9 General Fund
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
USE SOURCE NET COST
Department/Proposal
Personal
Services
Non-
Personal/
Equipment
T
otal Use
Revenue
Beg Fund
Balance
REVENUE ADJUSTMENTS
Required T
echnical-Rebalancing Actions Property T
ax a - - - $2,000,000 - ($2,000,000)
Sales T
ax a - - - $4,000,000 - ($4,000,000)
Sales T
ax (Dispute Resolution) a - - - $1,880,351 - ($1,880,351) Business T
axes a - - - $3,000,000 - ($3,000,000)
T
ransfers and Reimbursements a - - - $6,222,000 - ($6,222,000) Utility T
ax a - - - ($5,000,000) - $5,000,000
Fees, Rates and Charges (Fire
Emergency Response Fees) a - - - ($2,850,000) - $2,850,000 Revenue from Local Agencies
(Coyote and Guadalupe River T
rail
Patrol) a - - - ($325,000) - $325,000
Sum([1]) REVENUE ADJUSTMENTS TOTAL - - - $8,927,351 - ($8,927,351) [1]-[2] GENERAL FUND T
OTAL a $29,290,430 ($15,715,195) $13,575,235 $13,575,235 - - 10 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Affordable Housing Impact Fee Fund (452)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Budget Adjustments
Housing
Department Ending Fund Balance Adjustment - - - ($110,455) ($110,455) - - ($110,455) Housing Loans and Grants - - $2,000,000 - $2,000,000 - - $2,000,000 Housing Project Reserve - - - ($1,889,545) ($1,889,545) - - ($1,889,545) Budget Adjustments Total $0 $0 $2,000,000 ($2,000,000) $0 $0 $0 $0 Affordable Housing Impact Fee
Fund (452) TOTAL $0 $0 $2,000,000 ($2,000,000) $0 $0 $0 $0 1 ATTACHMENT E
Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Airport Customer Facility And Transportation Fee Fund (519) Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Budget Adjustments
Airport Department Future Debt Service Reserve - - - ($1,044,819) ($1,044,819) - - ($1,044,819) Rental Car Agency Distribution - - $1,044,819 - $1,044,819 - - $1,044,819 Budget Adjustments Total $0 $0 $1,044,819 ($1,044,819) $0 $0 $0 $0 Airport Customer Facility And
Transportation Fee Fund (519)
TOTAL $0 $0 $1,044,819 ($1,044,819) $0 $0 $0 $0
2 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Airport Fiscal Agent Fund (525)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Budget Adjustments
Airport Department Debt Service Reserve - - - ($3,298,185) ($3,298,185) - - ($3,298,185) Transfer to the Airport Revenue
Fund - - $3,298,185 - $3,298,185 - - $3,298,185
Budget Adjustments Total $0 $0 $3,298,185 ($3,298,185) $0 $0 $0 $0 Airport Fiscal Agent Fund (525)
TOTAL $0 $0 $3,298,185 ($3,298,185) $0 $0 $0 $0
3 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Airport Maintenance and Operation Fund (523)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Clean-Up and Rebudget Actions
Airport Department Tech Adjust: Operations
Contingency (Overage) - - ($3,000) - ($3,000) - - ($3,000) Information
Technology
Department
Tech Adjust: Personal Services
(Overage) $3,000 - - - $3,000 - - $3,000
Clean-Up and Rebudget Actions
TOTAL $3,000 $0 ($3,000) $0 $0 $0 $0 $0
Budget Adjustments
Airport Department Airline Reserve Funds Distribution - - $25,000,000 - $25,000,000 - - $25,000,000 Transfers and Reimbursements
(Transfer from the Airport Revenue
Fund)
- - - - - $25,000,000 - ($25,000,000)
Budget Adjustments Total $0 $0 $25,000,000 $0 $25,000,000 $25,000,000 $0 $0 Airport Maintenance and
Operation Fund (523) TOTAL $3,000 $0 $24,997,000 $0 $25,000,000 $25,000,000 $0 $0 4 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Airport Revenue Fund (521)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Budget Adjustments
Airport Department Airline Agreement Reserve - - - ($12,201,815) ($12,201,815) - - ($12,201,815) Transfer to the Airport Maintenance
and Operation Fund - - $25,000,000 - $25,000,000 - - $25,000,000 Transfer to the Airport Surplus
Revenue Fund - - ($9,500,000) - ($9,500,000) - - ($9,500,000) Transfers and Reimbursements
(Transfer from the Airport Fiscal
Agent Fund)
- - - - - $3,298,185 - ($3,298,185)
Budget Adjustments Total $0 $0 $15,500,000 ($12,201,815) $3,298,185 $3,298,185 $0 $0 Airport Revenue Fund (521)
TOTAL $0 $0 $15,500,000 ($12,201,815) $3,298,185 $3,298,185 $0 $0 5 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Airport Surplus Revenue Fund (524)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Budget Adjustments
Airport Department Transfer to the Airport Renewal and
Replacement Fund - - ($9,500,000) - ($9,500,000) - - ($9,500,000) Transfers and Reimbursements
(Transfer from the Airport Revenue
Fund)
- - - - - ($9,500,000) - $9,500,000
Budget Adjustments Total $0 $0 ($9,500,000) $0 ($9,500,000) ($9,500,000) $0 $0 Airport Surplus Revenue Fund
(524) TOTAL $0 $0 ($9,500,000) $0 ($9,500,000) ($9,500,000) $0 $0 6 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Benefits Funds - Benefit Fund (160)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Clean-Up and Rebudget Actions
Human Resources
Department
Tech Adjust: Ending Fund Balance
(Overage - Salary and Benefits
Program)
- - - ($16,000) ($16,000) - - ($16,000)
Tech Adjust: Personal Services
(Overage - Salary and Benefits
Program)
$16,000 - - - $16,000 - - $16,000
Clean-Up and Rebudget Actions
TOTAL $16,000 $0 $0 ($16,000) $0 $0 $0 $0
Budget Adjustments
Human Resources
Department Benefits Consultant Fee - - $8,000 - $8,000 - - $8,000 Ending Fund Balance Adjustment - - - ($8,000) ($8,000) - - ($8,000) Wellness Program/Other Revenue - - $246,000 - $246,000 $246,000 - $0 Budget Adjustments Total $0 $0 $254,000 ($8,000) $246,000 $246,000 $0 $0 Benefits Funds - Benefit Fund
(160) TOTAL $16,000 $0 $254,000 ($24,000) $246,000 $246,000 $0 $0 7 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Benefits Funds - Life Insurance Fund (156)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Clean-Up and Rebudget Actions
Human Resources
Department
Tech Adjust: Ending Fund Balance
(Overage) - - - ($4,000) ($4,000) - - ($4,000)
Tech Adjust: Personal Services
(Overage) $4,000 - - - $4,000 - - $4,000
Clean-Up and Rebudget Actions
TOTAL $4,000 $0 $0 ($4,000) $0 $0 $0 $0
Benefits Funds - Life Insurance
Fund (156) TOTAL $4,000 $0 $0 ($4,000) $0 $0 $0 $0
8 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Benefits Funds - Unemployment Insurance Fund (157)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Clean-Up and Rebudget Actions
Human Resources
Department
Tech Adjust: Ending Fund Balance
(Overage) - - - ($2,000) ($2,000) - - ($2,000)
Tech Adjust: Personal Services
(Overage) $2,000 - - - $2,000 - - $2,000
Clean-Up and Rebudget Actions
TOTAL $2,000 $0 $0 ($2,000) $0 $0 $0 $0
Benefits Funds - Unemployment
Insurance Fund (157) TOTAL $2,000 $0 $0 ($2,000) $0 $0 $0 $0 9 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Building Development Fee Program Fund (237)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Clean-Up and Rebudget Actions
Finance
Department
Tech Adjust: Development Fee
Program - Shared Resources
Personal Services (Overage)
$5,000 - - - $5,000 - - $5,000
Planning, Building
and Code
Enforcement
Department
Tech Adjust: Ending Fund Balance
(Overage) - - - ($5,000) ($5,000) - - ($5,000)
Clean-Up and Rebudget Actions
TOTAL $5,000 $0 $0 ($5,000) $0 $0 $0 $0
Building Development Fee
Program Fund (237) TOTAL $5,000 $0 $0 ($5,000) $0 $0 $0 $0 10 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Community Facilities District No. 8 (Communications Hill) Fund (373) Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Budget Adjustments
Public Works
Department
Community Facilities District No. 8
Annexation Feasibility
Project/Other Revenue
- - $41,457 - $41,457 $41,457 - -
Budget Adjustments Total $0 $0 $41,457 $0 $41,457 $41,457 $0 $0 Community Facilities District
No. 8 (Communications Hill)
Fund (373) TOTAL $0 $0 $41,457 $0 $41,457 $41,457 $0 $0 11 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Community Facilities District No. 14 (Raleigh-Charlotte) Fund (379) Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Budget Adjustments
Public Works
Department
Personal Services (Ramac
Restroom Repairs) $105,000 - - - $105,000 - - $105,000
Transportation
Department Ending Fund Balance Adjustment - - - ($148,000) ($148,000) - - ($148,000) Non-Personal/Equipment (Overage) - $43,000 - - $43,000 - - $43,000 Budget Adjustments Total $105,000 $43,000 $0 ($148,000) $0 $0 $0 $0 Community Facilities District
No. 14 (Raleigh-Charlotte) Fund
(379) TOTAL $105,000 $43,000 $0 ($148,000) $0 $0 $0 $0
12 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Downtown Property and Business Improvement District Fund (302) Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Clean-Up and Rebudget Actions
Transportation
Department
Tech Adjust: Ending Fund Balance
(Overhead) - - - ($3,000) ($3,000) - - ($3,000)
Tech Adjust: Overhead - - $3,000 - $3,000 - - $3,000
Clean-Up and Rebudget Actions
TOTAL $0 $0 $3,000 ($3,000) $0 $0 $0 $0
Downtown Property and
Business Improvement District
Fund (302) TOTAL $0 $0 $3,000 ($3,000) $0 $0 $0 $0
13 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Fire Development Fee Program Fund (240)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Clean-Up and Rebudget Actions
Finance
Department
Tech Adjust: Development Fee
Program - Shared Resources
Personal Services (Overage)
$1,000 - - - $1,000 - - $1,000
Fire Department Tech Adjust: Ending Fund Balance
(Overhead and Overage) - - - ($203,500) ($203,500) - - ($203,500) Tech Adjust: Overhead - - $200,000 - $200,000 - - $200,000 Planning, Building
and Code
Enforcement
Department
Tech Adjust: Fire Development
Fee Program - Shared Resources
Personal Services (PBCE)
(Overage - Salary and Benefits
Program)
$2,500 - - - $2,500 - - $2,500
Clean-Up and Rebudget Actions
TOTAL $3,500 $0 $200,000 ($203,500) $0 $0 $0 $0
Fire Development Fee Program
Fund (240) TOTAL $3,500 $0 $200,000 ($203,500) $0 $0 $0 $0 14 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ General Purpose Parking Fund (533)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Clean-Up and Rebudget Actions
Information
Technology
Department
Tech Adjust: Personal Services
(Overage) $1,000 - - - $1,000 - - $1,000
Transportation
Department
Tech Adjust: Ending Fund Balance
(Overage) - - - ($1,000) ($1,000) - - ($1,000)
Clean-Up and Rebudget Actions
TOTAL $1,000 $0 $0 ($1,000) $0 $0 $0 $0
General Purpose Parking Fund
(533) TOTAL $1,000 $0 $0 ($1,000) $0 $0 $0 $0
15 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Homeless Housing, Assistance, and Prevention Fund (454) Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Budget Adjustments
Housing
Department Emergency Shelters - - $450,000 - $450,000 - - $450,000 Ending Fund Balance Adjustment - - - ($450,000) ($450,000) - - ($450,000) Budget Adjustments Total $0 $0 $450,000 ($450,000) $0 $0 $0 $0 Homeless Housing, Assistance,
and Prevention Fund (454)
TOTAL $0 $0 $450,000 ($450,000) $0 $0 $0 $0
16 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Housing Trust Fund (440)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Budget Adjustments
Housing
Department Ending Fund Balance Adjustment - - - ($28,000) ($28,000) - - ($28,000) Office of the City
Attorney Personal Services (Overage) $28,000 - - - $28,000 - - $28,000 Budget Adjustments Total $28,000 $0 $0 ($28,000) $0 $0 $0 $0 Housing Trust Fund (440) TOTAL $28,000 $0 $0 ($28,000) $0 $0 $0 $0 17 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Ice Centre Revenue Fund (432)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Clean-Up and Rebudget Actions
Finance
Department Fund Balance Reconciliation - - - $142,326 $142,326 - $142,326 -
Clean-Up and Rebudget Actions
TOTAL $0 $0 $0 $142,326 $142,326 $0 $142,326 $0
Ice Centre Revenue Fund (432)
TOTAL $0 $0 $0 $142,326 $142,326 $0 $142,326 $0
18 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Integrated Waste Management Fund (423)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Clean-Up and Rebudget Actions
Environmental
Services
Department
Tech Adjust: Ending Fund Balance
(Overage) - - - ($1,000) ($1,000) - - ($1,000)
Information
Technology
Department
Tech Adjust: Non-
Personal/Equipment (Reallocation
from Personal Services for
Temporary Staffing)
- $80,000 - - $80,000 - - $80,000
Tech Adjust: Personal Services
(Reallocation to Non-
Personal/Equipment for Temporary
Staffing)
($80,000) - - - ($80,000) - - ($80,000)
Office of the City
Manager
Tech Adjust: Personal Services
(Overage) $1,000 - - - $1,000 - - $1,000
Clean-Up and Rebudget Actions
TOTAL ($79,000) $80,000 $0 ($1,000) $0 $0 $0 $0
Budget Adjustments
Environmental
Services
Department
Cal Recycle CRV Grant - - $14,911 - $14,911 - - $14,911 Ending Fund Balance Adjustment - - - ($2,239,911) ($2,239,911) - - ($2,239,911) Multi-Family Recycle Plus - $1,000,000 - - $1,000,000 - - $1,000,000 Non-Personal/Equipment (Overage) - $1,000,000 - - $1,000,000 - - $1,000,000 Workers' Compensation Claims - - $200,000 - $200,000 - - $200,000 Finance
Department Banking Services - - $5,000 - $5,000 - - $5,000 Public Works
Department Personal Services (Overage) $20,000 - - - $20,000 - - $20,000 Budget Adjustments Total $20,000 $2,000,000 $219,911 ($2,239,911) $0 $0 $0 $0 Integrated Waste Management
Fund (423) TOTAL ($59,000) $2,080,000 $219,911 ($2,240,911) $0 $0 $0 $0 19 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Library Parcel Tax Fund (418)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Budget Adjustments
Library Department Ending Fund Balance Adjustment - - - ($576,000) ($576,000) - - ($576,000) Transfer to the Library Parcel Tax
Capital Fund - - $576,000 - $576,000 - - $576,000
Budget Adjustments Total $0 $0 $576,000 ($576,000) $0 $0 $0 $0 Library Parcel Tax Fund (418)
TOTAL $0 $0 $576,000 ($576,000) $0 $0 $0 $0
20 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Low and Moderate Income Housing Asset Fund (346)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Clean-Up and Rebudget Actions
Housing
Department
Tech Adjust: Ending Fund Balance
(Overage - Salary and Benefits
Program)
- - - ($4,000) ($4,000) - - ($4,000)
Information
Technology
Department
Tech Adjust: Personal Services
(Overage - Salary and Benefits
Program)
$4,000 - - - $4,000 - - $4,000
Clean-Up and Rebudget Actions
TOTAL $4,000 $0 $0 ($4,000) $0 $0 $0 $0
Budget Adjustments
Finance
Department Personal Services (Overage) $18,000 - - - $18,000 - - $18,000 Housing
Department Ending Fund Balance Adjustment - - - ($412,000) ($412,000) - - ($412,000) Non-Personal/Equipment
(Consultant Services) - $344,000 - - $344,000 - - $344,000 Public Works
Department Personal Services (Overage) $50,000 - - - $50,000 - - $50,000 Budget Adjustments Total $68,000 $344,000 $0 ($412,000) $0 $0 $0 $0 Low and Moderate Income
Housing Asset Fund (346) TOTAL $72,000 $344,000 $0 ($416,000) $0 $0 $0 $0 21 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Maintenance District No. 1 (Los Paseos) Fund (352)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Budget Adjustments
Transportation
Department Ending Fund Balance Adjustment - - - ($43,000) ($43,000) - - ($43,000) Non-Personal/Equipment
(Emergency Sidewalk Repairs
Costs)
- $43,000 - - $43,000 - - $43,000
Budget Adjustments Total $0 $43,000 $0 ($43,000) $0 $0 $0 $0 Maintenance District No. 1 (Los
Paseos) Fund (352) TOTAL $0 $43,000 $0 ($43,000) $0 $0 $0 $0 22 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Maintenance District No. 15 (Silver Creek Valley) Fund (368) Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Budget Adjustments
Transportation
Department Ending Fund Balance Adjustment - - - ($100,000) ($100,000) - - ($100,000) Non-Personal/Equipment
(Contractual Landscape and Tree
Services Costs)
- $100,000 - - $100,000 - - $100,000
Budget Adjustments Total $0 $100,000 $0 ($100,000) $0 $0 $0 $0 Maintenance District No. 15
(Silver Creek Valley) Fund (368)
TOTAL $0 $100,000 $0 ($100,000) $0 $0 $0 $0
23 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Maintenance District No. 18 (The Meadowlands) Fund (372) Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Budget Adjustments
Transportation
Department Ending Fund Balance Adjustment - - - ($66,000) ($66,000) - - ($66,000) Non-Personal/Equipment (Overage) - $66,000 - - $66,000 - - $66,000 Budget Adjustments Total $0 $66,000 $0 ($66,000) $0 $0 $0 $0 Maintenance District No. 18 (The
Meadowlands) Fund (372) TOTAL $0 $66,000 $0 ($66,000) $0 $0 $0 $0 24 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Multi-Source Housing Fund (448)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Budget Adjustments
Housing
Department
Capitol Park Neighborhood Center
Improvements - - $200,000 - $200,000 - - $200,000
Ending Fund Balance Adjustment - - - ($225,000) ($225,000) - - ($225,000) Office of the City
Attorney Personal Services (Overage) $25,000 - - - $25,000 - - $25,000 Budget Adjustments Total $25,000 $0 $200,000 ($225,000) $0 $0 $0 $0 Multi-Source Housing Fund
(448) TOTAL $25,000 $0 $200,000 ($225,000) $0 $0 $0 $0
25 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Municipal Golf Course Fund (518)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Budget Adjustments
Parks, Recreation
and Neighborhood
Services
Department
Ending Fund Balance Adjustment - - - ($226,000) ($226,000) - - ($226,000) Los Lagos Golf Course Repair
Projects - - $226,000 - $226,000 - - $226,000
Budget Adjustments Total $0 $0 $226,000 ($226,000) $0 $0 $0 $0 Municipal Golf Course Fund
(518) TOTAL $0 $0 $226,000 ($226,000) $0 $0 $0 $0
26 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Planning Development Fee Program Fund (238)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Clean-Up and Rebudget Actions
Finance
Department
Tech Adjust: Development Fee
Program - Shared Resources
Personal Services (Overage)
$2,000 - - - $2,000 - - $2,000
Planning, Building
and Code
Enforcement
Department
Tech Adjust: Development Fee
Program - Shared Resources
Personal Services (PBCE)
(Overage)
$9,000 - - - $9,000 - - $9,000
Tech Adjust: Ending Fund Balance
(Overage) - - - ($11,000) ($11,000) - - ($11,000)
Clean-Up and Rebudget Actions
TOTAL $11,000 $0 $0 ($11,000) $0 $0 $0 $0
Budget Adjustments
Office of the City
Attorney Personal Services (Overage) $33,000 - - - $33,000 - - $33,000 Planning, Building
and Code
Enforcement
Department
Ending Fund Balance Adjustment - - - ($33,000) ($33,000) - - ($33,000) Budget Adjustments Total $33,000 $0 $0 ($33,000) $0 $0 $0 $0 Planning Development Fee
Program Fund (238) TOTAL $44,000 $0 $0 ($44,000) $0 $0 $0 $0 27 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Public Works Development Fee Program Fund (241)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Clean-Up and Rebudget Actions
Finance
Department
Tech Adjust: Development Fee
Program - Shared Resources
Personal Services (Overage)
$2,000 - - - $2,000 - - $2,000
Public Works
Department
Tech Adjust: Ending Fund Balance
(Overhead and Overage) - - - ($452,000) ($452,000) - - ($452,000) Tech Adjust: Overhead - - $450,000 - $450,000 - - $450,000
Clean-Up and Rebudget Actions
TOTAL $2,000 $0 $450,000 ($452,000) $0 $0 $0 $0
Budget Adjustments
Public Works
Department
Personal Services (Overage)/Fee,
Rates and Charges (Utility Fee
Program)
$3,000,000 - - - $3,000,000 $3,000,000 - -
Budget Adjustments Total $3,000,000 $0 $0 $0 $3,000,000 $3,000,000 $0 $0 Public Works Development Fee
Program Fund (241) TOTAL $3,002,000 $0 $450,000 ($452,000) $3,000,000 $3,000,000 $0 $0 28 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Public Works Program Support Fund (150)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Clean-Up and Rebudget Actions
Information
Technology
Department
Tech Adjust: Personal Services
(Overage) $7,000 - - - $7,000 - - $7,000
Public Works
Department
Tech Adjust: Ending Fund Balance
(Overhead and Overage) - - - ($157,000) ($157,000) - - ($157,000) Tech Adjust: Overhead - - $150,000 - $150,000 - - $150,000
Clean-Up and Rebudget Actions
TOTAL $7,000 $0 $150,000 ($157,000) $0 $0 $0 $0
Budget Adjustments
Public Works
Department Compensated Absences - - $3,300,000 - $3,300,000 - - $3,300,000 Ending Fund Balance Adjustment - - - ($2,400,000) ($2,400,000) - - ($2,400,000) Non-Personal/Equipment (Overage) - $100,000 - - $100,000 - - $100,000 Personal Services (Overage) $400,000 - - - $400,000 - - $400,000 Transfers and Reimbursements
(Compensated Absences) - - - - - $1,400,000 - ($1,400,000) Budget Adjustments Total $400,000 $100,000 $3,300,000 ($2,400,000) $1,400,000 $1,400,000 $0 $0 Public Works Program Support
Fund (150) TOTAL $407,000 $100,000 $3,450,000 ($2,557,000) $1,400,000 $1,400,000 $0 $0 29 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Real Property Transfer Tax Fund (404)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Clean-Up and Rebudget Actions
Housing
Department
Tech Adjust: Transfer to the
General Fund/Revenue from the
Use of Money/Property (Interest
Income)
- - $5,200,000 - $5,200,000 $5,200,000 - -
Clean-Up and Rebudget Actions
TOTAL $0 $0 $5,200,000 $0 $5,200,000 $5,200,000 $0 $0
Budget Adjustments
Housing
Department Ending Fund Balance Adjustment - - - $14,000,000 $14,000,000 - - $14,000,000 Measure E - Real Property
Transfer Tax - - - - - $14,000,000 - ($14,000,000)
Budget Adjustments Total $0 $0 $0 $14,000,000 $14,000,000 $14,000,000 $0 $0 Real Property Transfer Tax Fund
(404) TOTAL $0 $0 $5,200,000 $14,000,000 $19,200,000 $19,200,000 $0 $0 30 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ San José Clean Energy Operating Fund (501)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Clean-Up and Rebudget Actions
Energy Department Tech Adjust: Ending Fund Balance
(Overage) - - - ($114,000) ($114,000) - - ($114,000)
Tech Adjust: Personal Services
(Overage - Salary and Benefits
Program)
$100,000 - - - $100,000 - - $100,000
Finance
Department
Tech Adjust: Personal Services
(Overage) $4,000 - - - $4,000 - - $4,000
Office of the City
Manager
Tech Adjust: Office of the City
Manager - Personal Services
(Overage)
$10,000 - - - $10,000 - - $10,000
Clean-Up and Rebudget Actions
TOTAL $114,000 $0 $0 ($114,000) $0 $0 $0 $0
Budget Adjustments
Energy Department Ending Fund Balance Adjustment - - - ($185,101) ($185,101) - - ($185,101) PG&E Security Fees - - $125,101 - $125,101 - - $125,101 Information
Technology
Department
Personal Services (Overage) $18,000 - - - $18,000 - - $18,000 Office of the City
Attorney
Office of the City Attorney -
Personal Services (Overage) $42,000 - - - $42,000 - - $42,000 Budget Adjustments Total $60,000 $0 $125,101 ($185,101) $0 $0 $0 $0 San José Clean Energy
Operating Fund (501) TOTAL $174,000 $0 $125,101 ($299,101) $0 $0 $0 $0 31 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ San José Opioid Response Fund (130)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Budget Adjustments
Fire Department Community Paramedicine -
Fire/Revenue from State of
California
- - $145,000 - $145,000 $145,000 - $0
Budget Adjustments Total $0 $0 $145,000 $0 $145,000 $145,000 $0 $0 San José Opioid Response
Fund (130) TOTAL $0 $0 $145,000 $0 $145,000 $145,000 $0 $0 32 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ San José-Santa Clara Treatment Plant Operating Fund (513) Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Clean-Up and Rebudget Actions
Environmental
Services
Department
Tech Adjust: Ending Fund Balance
(PWCAP Overage) - - - ($25,000) ($25,000) - - ($25,000) Public Works
Department
Tech Adjust: Non-
Personal/Equipment (PWCAP
Overage)
- $25,000 - - $25,000 - - $25,000
Clean-Up and Rebudget Actions
TOTAL $0 $25,000 $0 ($25,000) $0 $0 $0 $0
Budget Adjustments
Environmental
Services
Department
Ending Fund Balance Adjustment - - - $25,000 $25,000 - - $25,000 Inventory (Reallocation from Non-
Personal/Equipment) - - $300,000 - $300,000 - - $300,000 Non-Personal/Equipment (2
Heavy-Duty Off-Road Tractors) - $0 - - $0 - - $0
Non-Personal/Equipment
(Reallocation to Inventory) - ($300,000) - - ($300,000) - - ($300,000) Personal Services (Savings) ($226,500) - - - ($226,500) - - ($226,500) Office of the City
Attorney Personal Services (Overage) $26,500 - - - $26,500 - - $26,500 Public Works
Department
Public Works Department -
Personal Services (Overage) $175,000 - - - $175,000 - - $175,000 Budget Adjustments Total ($25,000) ($300,000) $300,000 $25,000 $0 $0 $0 $0 San José-Santa Clara Treatment
Plant Operating Fund (513)
TOTAL ($25,000) ($275,000) $300,000 $0 $0 $0 $0 $0
33 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Sewage Treatment Plant Connection Fee Fund (539)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Clean-Up and Rebudget Actions
Environmental
Services
Department
Tech Adjust: Treatment Plant
Expansion Reserve (Overhead) - - - ($6,000) ($6,000) - - ($6,000) Public Works
Department Tech Adjust: Overhead - - $6,000 - $6,000 - - $6,000
Clean-Up and Rebudget Actions
TOTAL $0 $0 $6,000 ($6,000) $0 $0 $0 $0
Sewage Treatment Plant
Connection Fee Fund (539)
TOTAL $0 $0 $6,000 ($6,000) $0 $0 $0 $0
34 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Sewer Service and Use Charge Fund (541)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Clean-Up and Rebudget Actions
Environmental
Services
Department
Tech Adjust: Ending Fund Balance
(Overage) - - - ($49,000) ($49,000) - - ($49,000)
Finance
Department
Tech Adjust: Personal Services
(Overage - Salary and Benefits
Program)
$2,000 - - - $2,000 - - $2,000
Office of the City
Manager
Tech Adjust: Personal Services
(Overage) $7,000 - - - $7,000 - - $7,000
Public Works
Department
Tech Adjust: Non-
Personal/Equipment (PWCAP
Overage)
- $40,000 - - $40,000 - - $40,000
Clean-Up and Rebudget Actions
TOTAL $9,000 $40,000 $0 ($49,000) $0 $0 $0 $0
Budget Adjustments
Environmental
Services
Department
Ending Fund Balance Adjustment - - - ($60,000) ($60,000) - - ($60,000) Personal Services (Overage) $100,000 - - - $100,000 - - $100,000 Public Works
Department Personal Services (Savings) ($40,000) - - - ($40,000) - - ($40,000) Budget Adjustments Total $60,000 $0 $0 ($60,000) $0 $0 $0 $0 Sewer Service and Use Charge
Fund (541) TOTAL $69,000 $40,000 $0 ($109,000) $0 $0 $0 $0 35 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ South Bay Water Recycling Operating Fund (570)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Clean-Up and Rebudget Actions
Environmental
Services
Department
Tech Adjust: Ending Fund Balance
(Overage) - - - ($1,000) ($1,000) - - ($1,000)
Office of the City
Manager
Tech Adjust: Personal Services
(Overage) $1,000 - - - $1,000 - - $1,000
Clean-Up and Rebudget Actions
TOTAL $1,000 $0 $0 ($1,000) $0 $0 $0 $0
South Bay Water Recycling
Operating Fund (570) TOTAL $1,000 $0 $0 ($1,000) $0 $0 $0 $0 36 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Storm Sewer Operating Fund (446)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Clean-Up and Rebudget Actions
Environmental
Services
Department
Tech Adjust: Ending Fund Balance
(Overage) - - - ($11,000) ($11,000) - - ($11,000)
Office of the City
Manager
Tech Adjust: Personal Services
(Overage) $1,000 - - - $1,000 - - $1,000
Public Works
Department
Tech Adjust: Non-
Personal/Equipment (PWCAP
Overage)
- $10,000 - - $10,000 - - $10,000
Clean-Up and Rebudget Actions
TOTAL $1,000 $10,000 $0 ($11,000) $0 $0 $0 $0
Budget Adjustments
Environmental
Services
Department
Ending Fund Balance Adjustment - - - ($117,000) ($117,000) - - ($117,000) Polychlorinated Biphenyls
Settlement Reserve - - - ($50,000) ($50,000) - - ($50,000) Workers' Compensation Claims - - $50,000 - $50,000 - - $50,000 Office of the City
Attorney
Non-Personal/Equipment (Outside
Counsel Services) - $50,000 - - $50,000 - - $50,000
Personal Services (Overage) $67,000 - - - $67,000 - - $67,000 Budget Adjustments Total $67,000 $50,000 $50,000 ($167,000) $0 $0 $0 $0 Storm Sewer Operating Fund
(446) TOTAL $68,000 $60,000 $50,000 ($178,000) $0 $0 $0 $0 37 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Vehicle Maintenance and Operations Fund (552)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Clean-Up and Rebudget Actions
Public Works
Department Fund Balance Reconciliation - - - ($628) ($628) - ($628) - Fund Balance Reconciliation (Fuel
Reserve) - - - ($500,000) ($500,000) - ($500,000) $0
Clean-Up and Rebudget Actions
TOTAL $0 $0 $0 ($500,628) ($500,628) $0 ($500,628) $0
Budget Adjustments
Public Works
Department
Police Vehicle
Replacements/Transfers and
Reimbursements
- - ($1,050,000) - ($1,050,000) ($1,050,000) - -
Budget Adjustments Total $0 $0 ($1,050,000) $0 ($1,050,000) ($1,050,000) $0 $0 Vehicle Maintenance and
Operations Fund (552) TOTAL $0 $0 ($1,050,000) ($500,628) ($1,550,628) ($1,050,000) ($500,628) $0 38 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Water Utility Fund (515)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Clean-Up and Rebudget Actions
Environmental
Services
Department
Tech Adjust: Ending Fund Balance
(Overage) - - - ($1,000) ($1,000) - - ($1,000)
Office of the City
Manager
Tech Adjust: Personal Services
(Overage) $1,000 - - - $1,000 - - $1,000
Clean-Up and Rebudget Actions
TOTAL $1,000 $0 $0 ($1,000) $0 $0 $0 $0
Budget Adjustments
Environmental
Services
Department
Ending Fund Balance Adjustment - - - ($51,500) ($51,500) - - ($51,500) Workers' Compensation Claims - - $40,000 - $40,000 - - $40,000 Workers' Compensation Claims
Reserve - - - ($40,000) ($40,000) - - ($40,000)
Finance
Department Banking Services - - $10,000 - $10,000 - - $10,000 Office of the City
Attorney Personal Services (Overage) $41,500 - - - $41,500 - - $41,500 Budget Adjustments Total $41,500 $0 $50,000 ($91,500) $0 $0 $0 $0 Water Utility Fund (515) TOTAL $42,500 $0 $50,000 ($92,500) $0 $0 $0 $0 39 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Willow Glen Community Benefit Improvement District Fund (343) Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Budget Adjustments
Public Works
Department Ending Fund Balance Adjustment - - - ($642) ($642) - - ($642) Transfers and Reimbursements
(Transfer from the General Fund) - - - - - ($642) - $642 Budget Adjustments Total $0 $0 $0 ($642) ($642) ($642) $0 $0 Willow Glen Community Benefit
Improvement District Fund (343)
TOTAL $0 $0 $0 ($642) ($642) ($642) $0 $0
40 Special Funds
2025-2026 Recommendations Budget Adjustments and Clean Up Actions Year End Adjustments
______________________________________________________ ________________________________________________________________ _______________ Workforce Development Fund (290)
Personal
Non-
Personal/ Use Ending Fund Total Source Beg Fund Net Cost Department/Proposal Services Equipment Other Balance Use Revenue Balance Budget Adjustments
City Manager -
Office of
Economic
Development and
Cultural Affairs
SJ Works (Wells Fargo)/Other
Revenue - - $34,000 - $34,000 $34,000 - -
Budget Adjustments Total $0 $0 $34,000 $0 $34,000 $34,000 $0 $0 Workforce Development Fund
(290) TOTAL $0 $0 $34,000 $0 $34,000 $34,000 $0 $0
41 Capital Funds Recommended Budget Adjustments and Clean-Up Actions 2025-2026 Year-End Budget Review
USE SOURCE NET COST
Fund/Proposal Expense Ending Fund Total Use Revenue Beg Fund Balance Balance
___________________________________________________ ____________________________________ _______________________ ___________ Airport Capital Improvement Fund (520)
Airfield Configuration Updates $(1,316,544) $(1,316,544) $(1,316,544) Transfer to Storm Sewer Capital Fund $1,316,544 $1,316,544 $1,316,544 Budget Adjustments TOTAL a
Airport Capital Improvement Fund (520) TOTAL a
1 ATTACHMENT F
Capital Funds Recommended Budget Adjustments and Clean-Up Actions 2025-2026 Year-End Budget Review
USE SOURCE NET COST
Fund/Proposal Expense Ending Fund Total Use Revenue Beg Fund Balance Balance ___________________________________________________ ____________________________________ _______________________ ___________ Airport Renewal and Replacement Fund (527)
Airfield Configurations Updates $(9,317,088) $(9,317,088) $(9,317,088) Ending Fund Balance Adjustment a $(500,000) $(500,000) $(500,000) Transfer in from Airport Surplus Revenue Fund a $(9,500,000) $9,500,000 Transfer to Storm Sewer Capital Fund $317,088 $317,088 $317,088 Budget Adjustments TOTAL $(9,000,000) $(500,000) $(9,500,000) $(9,500,000) Airport Renewal and Replacement Fund (527) TOTAL $(9,000,000) $(500,000) $(9,500,000) $(9,500,000) 2 Capital Funds Recommended Budget Adjustments and Clean-Up Actions 2025-2026 Year-End Budget Review
USE SOURCE NET COST
Fund/Proposal Expense Ending Fund Total Use Revenue Beg Fund Balance Balance ___________________________________________________ ____________________________________ _______________________ ___________ Branch Libraries Bond Projects Fund (472)
Biblioteca Library Improvements $(640,000) $(640,000) $(640,000) Branch Efficiency Projects $640,000 $640,000 $640,000
Budget Adjustments TOTAL a
Branch Libraries Bond Projects Fund (472) TOTAL a
3 Capital Funds Recommended Budget Adjustments and Clean-Up Actions 2025-2026 Year-End Budget Review
USE SOURCE NET COST
Fund/Proposal Expense Ending Fund Total Use Revenue Beg Fund Balance Balance ___________________________________________________ ____________________________________ _______________________ ___________ Communications Construction and Conveyance Tax Fund (397) Tech Adjust: Revenue from the Use of Money/Property
(Interest Income) a $35,000 $(35,000)
Tech Adjust: Transfer to the General Fund (Interest Income) $35,000 $35,000 $35,000 Clean-Up and Rebudget Actions TOTAL $35,000 $35,000 $35,000 Communications Construction and Conveyance Tax
Fund (397) TOTAL $35,000 $35,000 $35,000
4 Capital Funds Recommended Budget Adjustments and Clean-Up Actions 2025-2026 Year-End Budget Review
USE SOURCE NET COST
Fund/Proposal Expense Ending Fund Total Use Revenue Beg Fund Balance Balance ___________________________________________________ ____________________________________ _______________________ ___________ Construction Excise Tax Fund (465)
Bridge Maintenance and Repair $58,000 $58,000 $58,000
Ending Fund Balance Adjustment a $(58,000) $(58,000) $(58,000) Budget Adjustments TOTAL $58,000 $(58,000)
Construction Excise Tax Fund (465) TOTAL $58,000 $(58,000) 5 Capital Funds Recommended Budget Adjustments and Clean-Up Actions 2025-2026 Year-End Budget Review
USE SOURCE NET COST
Fund/Proposal Expense Ending Fund Total Use Revenue Beg Fund Balance Balance ___________________________________________________ ____________________________________ _______________________ ___________ Council District 7 Construction and Conveyance Tax Fund (385) Elia Park Development $27,000 $27,000 $27,000
Ending Fund Balance Adjustment a $(27,000) $(27,000) $(27,000) Budget Adjustments TOTAL $27,000 $(27,000)
Council District 7 Construction and Conveyance Tax
Fund (385) TOTAL $27,000 $(27,000)
6 Capital Funds Recommended Budget Adjustments and Clean-Up Actions 2025-2026 Year-End Budget Review
USE SOURCE NET COST
Fund/Proposal Expense Ending Fund Total Use Revenue Beg Fund Balance Balance ___________________________________________________ ____________________________________ _______________________ ___________ General Purpose Parking Capital Fund (559)
Tech Adjust: Capital Program and Public Works Department Support Service Costs (PWCAP Overage) $100,000 $100,000 $100,000 Tech Adjust: Ending Fund Balance (PWCAP Overage) a $(100,000) $(100,000) $(100,000) Clean-Up and Rebudget Actions TOTAL $100,000 $(100,000) General Purpose Parking Capital Fund (559) TOTAL $100,000 $(100,000) 7 Capital Funds Recommended Budget Adjustments and Clean-Up Actions 2025-2026 Year-End Budget Review
USE SOURCE NET COST
Fund/Proposal Expense Ending Fund Total Use Revenue Beg Fund Balance Balance ___________________________________________________ ____________________________________ _______________________ ___________ Lake Cunningham Fund (462)
Tech Adjust: Capital Program and Public Works Department Support Service Costs (PWCAP Overage) $25,000 $25,000 $25,000 Tech Adjust: Ending Fund Balance (PWCAP Overage) a $(25,000) $(25,000) $(25,000) Clean-Up and Rebudget Actions TOTAL $25,000 $(25,000)
Ending Fund Balance Adjustment a $(42,000) $(42,000) $(42,000) Lake Cunningham Park Settlement $42,000 $42,000 $42,000 Budget Adjustments TOTAL $42,000 $(42,000)
Lake Cunningham Fund (462) TOTAL $67,000 $(67,000)
8 Capital Funds Recommended Budget Adjustments and Clean-Up Actions 2025-2026 Year-End Budget Review
USE SOURCE NET COST
Fund/Proposal Expense Ending Fund Total Use Revenue Beg Fund Balance Balance ___________________________________________________ ____________________________________ _______________________ ___________ Library Construction and Conveyance Tax Fund (393)
Tech Adjust: Revenue from the Use of Money/Property
(Interest Income) a $65,000 $(65,000)
Tech Adjust: Transfer to the General Fund (Interest Income) $65,000 $65,000 $65,000 Clean-Up and Rebudget Actions TOTAL $65,000 $65,000 $65,000 Branch Efficiency Projects $32,379 $32,379 $32,379
Ending Fund Balance Adjustment a $(32,379) $(32,379) $(32,379) Budget Adjustments TOTAL $32,379 $(32,379)
Library Construction and Conveyance Tax Fund (393)
TOTAL $97,379 $(32,379) $65,000 $65,000
9 Capital Funds Recommended Budget Adjustments and Clean-Up Actions 2025-2026 Year-End Budget Review
USE SOURCE NET COST
Fund/Proposal Expense Ending Fund Total Use Revenue Beg Fund Balance Balance ___________________________________________________ ____________________________________ _______________________ ___________ Library Parcel Tax Capital Fund (483)
Branch Efficiency Projects $776,000 $776,000 $776,000
Facilities Management $(200,000) $(200,000) $(200,000)
Transfers and Reimbursements (Transfer from the Library Parcel Tax Fund) a $576,000 $(576,000)
Budget Adjustments TOTAL $576,000 $576,000 $576,000
Library Parcel Tax Capital Fund (483) TOTAL $576,000 $576,000 $576,000 10 Capital Funds Recommended Budget Adjustments and Clean-Up Actions 2025-2026 Year-End Budget Review
USE SOURCE NET COST
Fund/Proposal Expense Ending Fund Total Use Revenue Beg Fund Balance Balance ___________________________________________________ ____________________________________ _______________________ ___________ Measure T: Public Safety and Infrastructure Bond Fund (498) Measure T - Fire Station 8 Relocation $148,000 $148,000 $148,000 Measure T - Flood Prevention Improvements $3,300,000 $3,300,000 $3,300,000 Measure T - Police Air Support Hangar $361,000 $361,000 $361,000 Measure T - Program Reserve (Public Safety) $(509,000) $(509,000) $(509,000) Measure T - Storm Drain Improvements at Charcot Avenue $(3,300,000) $(3,300,000) $(3,300,000) Budget Adjustments TOTAL a
Measure T: Public Safety and Infrastructure Bond
Fund (498) TOTAL a
11 Capital Funds Recommended Budget Adjustments and Clean-Up Actions 2025-2026 Year-End Budget Review
USE SOURCE NET COST
Fund/Proposal Expense Ending Fund Total Use Revenue Beg Fund Balance Balance ___________________________________________________ ____________________________________ _______________________ ___________ Park Yards Construction and Conveyance Tax Fund (398)
Tech Adjust: Capital Program and Public Works Department Support Service Costs (PWCAP Overage) $3,000 $3,000 $3,000 Tech Adjust: Ending Fund Balance (PWCAP Overage) a $(3,000) $(3,000) $(3,000) Clean-Up and Rebudget Actions TOTAL $3,000 $(3,000)
Park Yards Construction and Conveyance Tax Fund
(398) TOTAL $3,000 $(3,000)
12 Capital Funds Recommended Budget Adjustments and Clean-Up Actions 2025-2026 Year-End Budget Review
USE SOURCE NET COST
Fund/Proposal Expense Ending Fund Total Use Revenue Beg Fund Balance Balance ___________________________________________________ ____________________________________ _______________________ ___________ Parks Central Construction and Conveyance Tax Fund (390) Tech Adjust: Capital Program and Public Works Department Support Service Costs (PWCAP Overage) $100,000 $100,000 $100,000 Tech Adjust: Ending Fund Balance (PWCAP Overage) a $(100,000) $(100,000) $(100,000) Clean-Up and Rebudget Actions TOTAL $100,000 $(100,000) Parks Central Construction and Conveyance Tax
Fund (390) TOTAL $100,000 $(100,000)
13 Capital Funds Recommended Budget Adjustments and Clean-Up Actions 2025-2026 Year-End Budget Review
USE SOURCE NET COST
Fund/Proposal Expense Ending Fund Total Use Revenue Beg Fund Balance Balance ___________________________________________________ ____________________________________ _______________________ ___________ Parks City-Wide Construction and Conveyance Tax Fund (391) Ending Fund Balance Adjustment a $211,000 $211,000 $211,000 Happy Hollow Park and Zoo Exhibit Improvements $50,000 $50,000 $50,000 Other Revenue (Happy Hollow Park and Zoo Exhibit
Improvements) a $261,000 $(261,000)
Budget Adjustments TOTAL $50,000 $211,000 $261,000 $261,000 Parks City-Wide Construction and Conveyance Tax
Fund (391) TOTAL $50,000 $211,000 $261,000 $261,000
14 Capital Funds Recommended Budget Adjustments and Clean-Up Actions 2025-2026 Year-End Budget Review
USE SOURCE NET COST
Fund/Proposal Expense Ending Fund Total Use Revenue Beg Fund Balance Balance ___________________________________________________ ____________________________________ _______________________ ___________ Residential Construction Tax Contribution Fund (420)
Tech Adjust: Capital Program and Public Works Department Support Service Costs (PWCAP Overage) $4,000 $4,000 $4,000 Tech Adjust: Ending Fund Balance (PWCAP Overage) a $(4,000) $(4,000) $(4,000) Tech Adjust: Revenue from the Use of Money/Property
(Interest Income) a $35,000 $(35,000)
Tech Adjust: Transfer to the General Fund (Interest Income) $35,000 $35,000 $35,000 Clean-Up and Rebudget Actions TOTAL $39,000 $(4,000) $35,000 $35,000 Residential Construction Tax Contribution Fund (420)
TOTAL $39,000 $(4,000) $35,000 $35,000
15 Capital Funds Recommended Budget Adjustments and Clean-Up Actions 2025-2026 Year-End Budget Review
USE SOURCE NET COST
Fund/Proposal Expense Ending Fund Total Use Revenue Beg Fund Balance Balance ___________________________________________________ ____________________________________ _______________________ ___________ Service Yards Construction and Conveyance Tax Fund (395) Tech Adjust: Capital Program and Public Works Department Support Service Costs (PWCAP Overage) $25,000 $25,000 $25,000 Tech Adjust: Ending Fund Balance (PWCAP Overage) a $(25,000) $(25,000) $(25,000) Clean-Up and Rebudget Actions TOTAL $25,000 $(25,000)
2021A Arbitrage Reserve $521,000 $521,000 $521,000
Central Service Yard - Bldg. F Expansion $(207,000) $(207,000) $(207,000) Central Service Yard - Service Yards Generators Replacement $(335,000) $(335,000) $(335,000) Ending Fund Balance Adjustment a $21,000 $21,000 $21,000 Budget Adjustments TOTAL $(21,000) $21,000
Service Yards Construction and Conveyance Tax
Fund (395) TOTAL $4,000 $(4,000)
16 Capital Funds Recommended Budget Adjustments and Clean-Up Actions 2025-2026 Year-End Budget Review
USE SOURCE NET COST
Fund/Proposal Expense Ending Fund Total Use Revenue Beg Fund Balance Balance ___________________________________________________ ____________________________________ _______________________ ___________ State Gas Tax Pavement Maintenance Fund (480)
Ending Fund Balance Adjustment a $(994,940) $(994,940) $(994,940) Pavement Maintenance - State Gas Tax $994,940 $994,940 $994,940 Budget Adjustments TOTAL $994,940 $(994,940)
State Gas Tax Pavement Maintenance Fund (480)
TOTAL $994,940 $(994,940)
17 Capital Funds Recommended Budget Adjustments and Clean-Up Actions 2025-2026 Year-End Budget Review
USE SOURCE NET COST
Fund/Proposal Expense Ending Fund Total Use Revenue Beg Fund Balance Balance ___________________________________________________ ____________________________________ _______________________ ___________ Storm Drainage Fee Fund (413)
Tech Adjust: Revenue from the Use of Money/Property
(Interest Income) a $8,000 $(8,000)
Tech Adjust: Transfer to the General Fund (Interest Income) $8,000 $8,000 $8,000 Clean-Up and Rebudget Actions TOTAL $8,000 $8,000 $8,000 Storm Drainage Fee Fund (413) TOTAL $8,000 $8,000 $8,000 18 Capital Funds Recommended Budget Adjustments and Clean-Up Actions 2025-2026 Year-End Budget Review
USE SOURCE NET COST
Fund/Proposal Expense Ending Fund Total Use Revenue Beg Fund Balance Balance ___________________________________________________ ____________________________________ _______________________ ___________ Storm Sewer Capital Fund (469)
Ending Fund Balance Adjustment a $1,150,000 $1,150,000 $1,150,000 Green Infrastructure Improvements $1,633,632 $1,633,632 $1,633,632 Large Trash Capture Devices $500,000 $500,000 $500,000
Large Trash Capture Devices Phase IX Feasibility Study $700,000 $700,000 $700,000 Small Trash Capture Devices $(2,600,000) $(2,600,000) $(2,600,000) Storm Sewer Improvements $250,000 $250,000 $250,000
Transfers and Reimbursements (Transfer from Airport Capital Improvement Fund) a $1,316,544 $(1,316,544)
Transfers and Reimbursements (Transfer from Airport Renewal and Replacement Fund) a $317,088 $(317,088)
Budget Adjustments TOTAL $483,632 $1,150,000 $1,633,632 $1,633,632 Storm Sewer Capital Fund (469) TOTAL $483,632 $1,150,000 $1,633,632 $1,633,632 19 Capital Funds Recommended Budget Adjustments and Clean-Up Actions 2025-2026 Year-End Budget Review
USE SOURCE NET COST
Fund/Proposal Expense Ending Fund Total Use Revenue Beg Fund Balance Balance ___________________________________________________ ____________________________________ _______________________ ___________ Subdivision Park Trust Fund (375)
Tech Adjust: Capital Program and Public Works Department Support Service Costs (PWCAP Overage) $100,000 $100,000 $100,000 Tech Adjust: Future PDO/PIO Projects Reserve (PWCAP
Overage) $(100,000) $(100,000) $(100,000)
Clean-Up and Rebudget Actions TOTAL a
Alma Community Center HVAC Replacement $160,000 $160,000 $160,000 Future PDO/PIO Projects Reserve $(969,000) $(969,000) $(969,000) Lake Cunningham Park Settlement $303,000 $303,000 $303,000 Northside Community Center HVAC Improvement $256,000 $256,000 $256,000 Ramac Park Restroom Reconstruction $250,000 $250,000 $250,000 Budget Adjustments TOTAL a
Subdivision Park Trust Fund (375) TOTAL a
20 Capital Funds Recommended Budget Adjustments and Clean-Up Actions 2025-2026 Year-End Budget Review
USE SOURCE NET COST
Fund/Proposal Expense Ending Fund Total Use Revenue Beg Fund Balance Balance ___________________________________________________ ____________________________________ _______________________ ___________ Underground Utility Fund (416)
Tech Adjust: Capital Program and Public Works Department Support Service Costs (PWCAP Overage) $45,000 $45,000 $45,000 Tech Adjust: Ending Fund Balance (PWCAP Overage) a $(45,000) $(45,000) $(45,000) Clean-Up and Rebudget Actions TOTAL $45,000 $(45,000)
Ending Fund Balance Adjustment a $(5,000) $(5,000) $(5,000) Underground Utility Administration (20B) $5,000 $5,000 $5,000 Budget Adjustments TOTAL $5,000 $(5,000)
Underground Utility Fund (416) TOTAL $50,000 $(50,000)
21 Capital Funds Recommended Budget Adjustments and Clean-Up Actions 2025-2026 Year-End Budget Review
USE SOURCE NET COST
Fund/Proposal Expense Ending Fund Total Use Revenue Beg Fund Balance Balance
___________________________________________________ ____________________________________ _______________________ ___________ Water Utility Capital Fund (500)
Tech Adjust: Capital Program and Public works Department Support Cost (PWCAP Overage) $45,000 $45,000 $45,000
Tech Adjust: Ending Fund Balance (PWCAP Overage) a $(45,000) $(45,000) $(45,000) Clean-Up and Rebudget Actions TOTAL $45,000 $(45,000)
Advanced Metering Infrastructure Implementation $(18,000,000) $(18,000,000) $(18,000,000) Debt Service $(1,508,000) $(1,508,000) $(1,508,000)
Ending Fund Balance Adjustment a $19,508,000 $19,508,000 $19,508,000 Budget Adjustments TOTAL $(19,508,000) $19,508,000
Water Utility Capital Fund (500) TOTAL $(19,463,000) $19,463,000 22