PSFSS COMMITTEE AGENDA: 08/20/26
ITEM: (d)1
TO: PUBLIC SAFETY, FINANCE AND
STRATEGIC SUPPORT
COMMITTEE
FROM: Maria Öberg
SUBJECT: Fourth Quarter Financial Reports
for Fiscal Year 2025-2026
DATE: July 30, 2026
Approved Date
COUNCIL DISTRICT: Citywide
RECOMMENDATION
(a) Accept the Fourth Quarter (period ended June 30, 2026) Financial Reports for Fiscal Year 2025-2026 for the following programs:
(1) Debt Management;
(2) Investment Management;
(3) Revenue Management; and
(4) Purchasing and Risk Management;
(b) Refer the Fourth Quarter Financial Reports for Fiscal Year 2025-2026 to the September 15, 2026 City Council meeting for full adoption.
SUMMARY AND OUTCOME
Provide the quarterly update on debt management, investment management, revenue management, purchasing, and risk management activities.
BACKGROUND
The attached Fourth Quarter Financial Reports for Fiscal Year (FY) 2025-2026 (quarter ended June 30, 2026) (Financial Reports) present the quarterly activity for the City of San José (City) Finance Department’s Debt Management, Investment Management, Revenue Management, Purchasing, and Risk Management programs (Attachment A).
Additionally, the Fourth Quarter Investment Report for the Quarter Ended June 30, 2026 (Attachment B), is available on the City’s website at: https://www.sanjoseca.gov/yourJuly 30, 2026
PUBLIC SAFETY, FINANCE AND STRATEGIC SUPPORT COMMITTEE
July 30, 2026
Subject: Fourth Quarter Financial Reports for Fiscal Year 2025-2026
government/departments-offices/finance/reports/-folder7054#docfold_14_4866_6255_7054 and is included with this report to the Public Safety, Finance and Strategic Support Committee (PSFSS Committee). As part of the ongoing effort to streamline work efforts within the Finance Department, these programs are combined into a single report for submission to the PSFSS Committee for its review and referral to the City Council for acceptance.
ANALYSIS
A brief narrative discussion is provided below for all programs in this quarterly report.
Debt Management Program
This report discusses the City’s completed debt activities for the period ended June 30, 2026, and relates to the following elements of the City’s Debt Management Program:
• Completed financings and current debt portfolio;
• Debt issuance, redemptions, and management activities completed during the second quarter;
• Current interest rate environment as of June 30, 2026; and • Credit ratings.
Investment Management Program
Pursuant to the City’s Investment Policy, verbal presentations, in addition to the written reports, are provided to the PSFSS Committee for the Second and Fourth Quarter Reports only. The materials presented in this consolidated report provide a “snapshot” of the investment portfolio.
Revenue Management Program
The Revenue Management report highlights key aspects of the City’s ongoing collection efforts. These efforts focus on reducing delinquent accounts receivable and enhancing revenue compliance through four primary collection programs: Accounts Receivable, Business Tax, Revenue Compliance and Monitoring, and Utility Billing. This report highlights the Revenue Management Division’s collection efforts and summarizes the progress towards maintaining a Return-on-Investment ratio of 5.0 to 1. The Q4 FY 2025-26 Return on Investment is 4.8 to 1, and the FY 2025-26 Return on Investment is
5.13 to 1.
Overview of Collection Process – City departments issue invoices for various fines, fees, or other costs incurred by the City. Invoices are entered into the City's centralized Accounts Receivable system or referred to the Accounts Receivable group for accounts generated by City departments through stand-alone billing systems. Each department is responsible for the initial billing of the appropriate parties.
PUBLIC SAFETY, FINANCE AND STRATEGIC SUPPORT COMMITTEE
July 30, 2026
Subject: Fourth Quarter Financial Reports for Fiscal Year 2025-2026
If an account has an unpaid balance after 30 days, a delinquency notice, including any additional interest, penalties, and applicable fees, is generated and mailed to the debtor. The account is then assigned to an Investigator Collector in the Finance Department, who begins the revenue collection process by contacting the debtor to attempt to collect the past due amount. After 60 days, a second collection notice, including any additional interest, penalties, and other fees, is mailed to the debtor.
At this point, a collection cost recovery fee is added to each account. This cost recovery fee is reviewed and set on an annual basis. After approximately 120 days, the Senior Investigator Collector reviews each remaining delinquent invoice with Investigator Collectors to determine the appropriate action to take against the debtor to collect the outstanding balances.
Business Tax Amnesty Program – The Amnesty Program increases statutory compliance while providing needed financial relief for City residents and businesses, by authorizing the Director of Finance to waive the respective late interest, and other collection levies on any base taxes, fees and charges collected. The Program application period began January 1, 2026, and will continue through December 31, 2026. Business Tax accounts with delinquent or unregistered business tax from January 1, 2022, through December 31, 2026, are eligible for amnesty forgiveness.
Table 1 below presents the program measurements for the Amnesty Program through June 30, 2026.
Table 1
Program Measurements through June 30, 2026
Projected Net Revenue $2.9M
FY25-26 Payments $2.15M
Program Expenses ($0.1M)
Net Revenue $2.05M
Amnesty Waivers to Date ($1.1M)
Purchasing Program
The Purchasing report highlights the key aspects of the City’s purchasing operations.
The Purchasing Unit is responsible for the centralized procurement of equipment, supplies, materials, information technology, and general services, pursuant to Chapter
4.12 of Title 4 of the San José Municipal Code. The Purchasing Unit’s objective is to deliver procurement and contracting services pursuant to public procurement best practices.
Additional information has been provided in this quarter’s report to highlight the status of a recent City audit. In August 2025, the Office of the City Auditor completed an audit of Purchasing functions entitled “Procurement: The City Should Review its Risk Strategy,
PUBLIC SAFETY, FINANCE AND STRATEGIC SUPPORT COMMITTEE
July 30, 2026
Subject: Fourth Quarter Financial Reports for Fiscal Year 2025-2026
Performance Measurement, and Guidance to Improve the Procurement Process1.” Eight recommendations were provided as a result of this audit. As of the most recent status report of open audit recommendations provided to City Council on March 24, 20262, two recommendations have been fully implemented with another recommendation partly implemented. The Finance Department intends to close out the remaining recommendations within the first quarter of FY 2026-2027.
Risk Management Program
The Risk Management report highlights the key aspects of the City’s Risk Management Program. The Risk Management Unit is responsible for the procurement and oversight of the City’s property and casualty insurance programs. The Risk Management Unit also provides contractual risk management services, property subrogation claims reporting, and other key services to City departments including enterprise departments such as the Airport Department and San José-Santa Clara Regional Wastewater Facility.
EVALUATION AND FOLLOW-UP
The Finance Department prepares this report on a quarterly basis for review and approval by the PSFSS Committee. Finance Department staff will present the investment report and will be available to answer questions on the Financial Reports at the PSFSS Committee meeting on August 20, 2026, and at the City Council meeting on September 15, 2026.
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office and City Manager’s Budget Office.
PUBLIC OUTREACH
This memorandum will be posted on the City Council Agenda website for the August 20, 2026, PSFSS Committee meeting and the September 15, 2026, City Council meeting.
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input is associated with this action. 1 https://www.sanjoseca.gov/home/showdocument?id=123964 2 https://www.sanjoseca.gov/home/showpublisheddocument/129507/639090157875500000
PUBLIC SAFETY, FINANCE AND STRATEGIC SUPPORT COMMITTEE
July 30, 2026
Subject: Fourth Quarter Financial Reports for Fiscal Year 2025-2026
CEQA
Not a project, Public Project number PP17-010, City Organizational & Administrative Activities, resulting in no changes to the physical environment.
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.
MARIA ÖBERG
Director of Finance
For questions please contact:
Program
Finance
Contact Finance Division Phone
Debt Management
Investment Management
Qianyu Sun Deputy Director, Debt &
Treasury Management
(408) 535-7832
Revenue Management John
Kachmanian
Deputy Director,
Revenue Management
(408) 535-7034
Purchasing
Risk Management
Fletcher
Barnes
Hank Ford
Deputy Director,
Purchasing
Risk Manager
(408) 535-7017
(408) 535-3868
ATTACHMENTS:
Attachment A: Fourth Quarter Financial Reports for Fiscal Year 2025-2026 Presentation Attachment B: Fourth Quarter Investment Report for the Quarter Ended June 30, 2026