Fiscal Years
2025 - 26 and 2026 - 27
Council Annual Planning
Session – Financial
Presentation
February 1, 2025
1 Annual Planning Session - Financial Presentation
Financial Presentation
1 FY 2024-25
Budget Overview
Economic
Context
3 Human
Capital
4 Capital
Assets
5 7
General Fund
Forecast Update
ARPA
6 General Fund
Forecast
2 February 1, 2025
2 Annual Planning Session - Financial Presentation
FY 2024-25 Budget
Overview
July 1, 2024 through June 30, 2025
February 1, 2025
3 Annual Planning Session - Financial Presentation
FY 2024-25 Budgeted Expenditures
Proprietary Funds General Fund
Special Funds Total Expenses
$8.2 M
Parking, Asset Seizure,
Transportation, Grants, Capital
Improvement
$149.9 M
$209.6 M
$51.5 M - Enterprise Funds:
Water Pollution Control Plant,
Shoreline
- Internal Service Funds:
Facilities Maintenance, Information
Technology, Insurance services,
Equipment Maintenance
71%
25%
4%
General
Fund
Proprietary
Funds
Special
Funds
February 1, 2025
4 Annual Planning Session - Financial Presentation
February 1, 2025
5 Annual Planning Session - Financial Presentation
• Ongoing $133.9
–Staffing $64.6 M
–Fire Contract: $27.7 M
–Operating Expenses $14.5 M
– Liabilities $27.1 M
• Debt Service $6.6 M
• Pensions $19.5 M
• Retiree health $1.0 M
• One-Time $16.8
– Capital Needs, Community
Projects & One-time Payments
Staffing
43%
Fire
Contract
18%
Operating
Expenses
10%
Liabilities
18%
Capital &
Community
Projects
11%
BUDGETED
EXPENDITURES
Ge ne ral Fund Exp e nd iture s
General Fund Forecast
The General Fund 10-year Forecast is updated as needed by City Management for projection and project purposes
February 1, 2025
6 Annual Planning Session - Financial Presentation
February 1, 2025
7 Annual Planning Session - Financial Presentation
10-Yr General Fund Forecast
Economic Context
February 1, 2025
8 Annual Planning Session - Financial Presentation
Economic
Considerations
The City factors in local, state,
and national economic trends
when preparing forecasts and
budget estimates
Interest Rates
Unusually high interest rates
- Good for investments
- Bad for lending
Rates have been decreasing
Geopolitical
Supply chain management is
recovering from pandemic
disruptions however staff are
consistently monitoring
geopolitical conflict for potential
future disruptions.
Natural Disasters
Not only must the City prepare for
a potential disaster event within
the area, staff monitor disasters
around the world to determine any
potential supply chain or monetary
impacts to the City.
Unemployment
San Leandro has had a stable labor
market since emerging from the
pandemic. Unemployment rates
have been consistently below the
State average.
Federal Changes
Staff monitor federal policy
changes such as regulatory
updates and any potential tariffs
that would affect the cost of goods
procured by the City.
Structural Deficits
City staff work to reduce the cost
of services however inflation
dictates certain increases to both
labor and materials. Securing
additional revenue sources is key
to maintaining long -term fiscal
stability.
Pg_ ________ Meeting Date _____
February 1, 2025
9 Annual Planning Session - Financial Presentation
Human Capital
February 1, 2025
10 Annual Planning Session - Financial Presentation
Staffing Considerations
Doing more with less
Department
Full
Time
Pre-Great Recession 388
During Pandemic 318
Fiscal Year 2022-23 313
Today 337
February 1, 2025
11 Annual Planning Session - Financial Presentation
Ongoing Considerations
Unfunded Liabilities
Pensions
(CalPERS)
Valuation
• Total Pension Liability - $719,702,437
• Market Value of Assets –
$468,120,615 (65% Funded)
• Pension Trust Value –
$33,318,316 (69.7% Funded)
Budget
• Normal Cost:
Est. FY26 contributions - $5.7 M
• Unfunded Liability (UAL):
FY26 $20.5 M – FY30 $25.86 M
Other Post -Employment
Benefits (OPEB)
Valuation
• Total OPEB Liability -
$22,737,594
• Fiduciary Net Position -
$21,662,830 (95.27% Funded)
Budget
• Est. FY26 costs - $765,351
Total Unfunded Retiree Benefits:
$219,338,270
February 1, 2025
12 Annual Planning Session - Financial Presentation
Capital Asset
Considerations
February 1, 2025
13 Annual Planning Session - Financial Presentation
Capital Improvement Plan
34 Facilities
$19 M Backlog by FY28
Facilities
71 Mile System
$79.6 M
Stormwater
182 centerline miles
Maint . PCI - $12.5 M/year (first 5 years)
$8 M/year to maintain
Streets
125 miles of pipe
$58.85 M over the next 5 years, $91.5
M over the next 10 years
WPCP
Parks Master Plan being
presented in February, estimated capital costs
approximately $14 M over 10 years
Parks
February 1, 2025
14 Annual Planning Session - Financial Presentation
Internal Service Funds
Capital Replacements
estimated at $19 million
by 2030
Building
City has just kicked off
an IT assessment,
Estimated $6.8 million
in asset replacements
by 2030, $11.5 million
by 2035
IT
Estimated replacement
costs of $21.9 million,
$6 million by 2030
Vehicles and
Equipment
February 1, 2025
15 Annual Planning Session - Financial Presentation
American Rescue
Plan Act (ARPA)
February 1, 2025
16 Annual Planning Session - Financial Presentation
Ongoing Projects
$780,000 over three
years ($260,000/year)
Alternative
Response Unit
$1.19M over two
years ($595,000/year)
Enhanced Street
Cleanliness Volunteer SL
$250,000 over three
years ($83,333/year)
Median Maint . &
Tree Trimming
$575,000 over two
years ($287,500/year)
$1.2 M per year
Staffing and Contractor
costs for increased street
cleaning and
encampment cleanup
Supports volunteer
opportunities for City
sponsored events
A collaborative pilot program
designed to efficiently utilize
behavioral health and medical
care services
Staffing and Contractor costs
for both current and
backlogged service in
maintenance and trimming of
City rights-of-way
February 1, 2025
17 Annual Planning Session - Financial Presentation
General Fund Forecast
Update
February 1, 2025
18 Annual Planning Session - Financial Presentation
February 1, 2025
19 Annual Planning Session - Financial Presentation
10-Yr General Fund Forecast
Strengthening our
Financial Foundation
Reserve Policies
Current:
- GF Fund Balance Policy (20%)
- Debt Policy
Upcoming:
-Reserve Policy
- Pension/OPEB Funding Policies
Leverage revenue and
expense projections for
future planning
ERP Replacement
Currently implementing
WorkDay; HR/Payroll
being implemented first,
then moving to
financials
10-Year Forecast
Pension/OPEB
Balance funding future
obligations and drawing down
on trust funds to reduce
General Fund expenditures in
future years
Internal Controls
- Internal Quarterly Budget
Reviews
- Finalization of Master and
Capital Improvement Plans
- Refined Performance Measures
Fee Study
Currently being reviewed by
Finance Committee on a
Department basis. Coming to
Council for adoption in May.
February 1, 2025
20 Annual Planning Session - Financial Presentation
February 1, 2025
21