FY 2026
Mid-Year Financial Review & Update
• Finance Committee - February 25, 2026
• Nicole Gonzales, Finance Director
1 General Fund
Mid-Year Review
2 General
Fund
FY 2026
Mid-Year
Review
(in Millions)
3 A B C D E F G H I
GENERAL FUND 1
Amended
Budget
YTD as of
12/31/24
YTD % of
Budget
Amended
Budget
YTD as of
12/31/25
% of
Amended
Budget
Yr to Yr
Change ($)
Yr to Yr
Change (%) 2 GENERAL GOVERNMENT 3 Property Tax 31.9 14.9 47% 33.8 15.5 46% 0.6 4% 4 Sales Tax 53.3 16.0 30% 54.9 16.2 30% 0.2 1% 5 Utility Users Tax 13.9 5.5 39% 13.9 5.2 38% -0.3 -5% 6 Franchise Fees 7.2 1.8 25% 7.4 1.9 25% 0.1 5% 7 Property Transfer Tax 8.8 2.9 33% 10.0 3.6 36% 0.7 26% 8 Emergency Communication Access Fee (911) 3.9 1.4 35% 4.0 1.1 27% -0.3 -21% 9 Business License Tax 6.4 1.2 19% 6.6 0.4 7% -0.8 -64% 10 Other Tax 1.9 0.4 24% 2.0 0.6 29% 0.1 28%
11 Sub Total Taxes $127.3 M $44.0 M 35% $132.5 M $44.4 M 34% $0.4 M 1% 12 Charges for Services 2.7 1.3 50% 3.6 2.0 55% 0.6 48% 13 Interest & Property Income 3.7 2.6 70% 3.6 4.1 116% 1.6 60% 14 Fines, Fees & Forfeitures 0.7 0.8 122% 0.4 0.3 75% -0.5 -64% 15 Intergovernmental 0.9 0.5 55% 1.0 1.2 128% 0.7 145%
16 Licenses & Permits 4.7 2.2 46% 5.3 2.3 43% 0.1 6%
17 Interdepartmental 2.8 1.4 50% 2.9 1.4 50% 0.0 3%
18 Other/Transfers 0.7 0.4 60% 0.8 0.4 51% 0.0 -7%
19 Sub Total Other $16.2 M $9.2 M 57% $17.5 M $11.7 M 67% $2.5 M 27% 20 Total Revenues $143.4 M $53.2 M 37% $150.0 M $56.2 M 37% $2.9 M 6% 21 22 Expenditures
23 General Administration 10.6 3.9 37% 10.0 4.2 42% 0.3 7% 24 Council, Clerk, City Attorney,
25 City Manager and Human Resources
26 Finance 5.1 1.9 36% 5.5 2.1 38% 0.2 12%
27 Police 47.0 21.2 45% 50.8 23.1 46% 1.9 9%
28 Fire 33.9 13.6 40% 35.1 14.3 41% 0.7 5%
29 Recreation and Parks 6.1 2.8 46% 5.9 3.1 53% 0.4 13% 30 Human Services 7.8 1.1 14% 6.8 1.1 17% 0.0 4%
31 Library 9.1 4.1 45% 10.1 5.0 49% 0.9 22%
32 Public Works 16.5 7.6 46% 16.4 8.1 49% 0.4 6%
33 Community Development 13.9 5.6 40% 13.1 5.8 44% 0.2 3% 34 Non-Departmental 4.5 1.8 41% 4.4 1.7 40% -0.1 -4%
35 Debt Service 0.4 0.2 50% 0.4 0.2 50% 0.0 0%
36 Total Operating Expenditures 154.8 63.8 41% 158.5 68.8 43% 4.9 8% 37 Transfers 9.3 0.1 2% 7.0 0.0 0% -0.1 -100%
38 Total Expenditures and Transfers $164.1 M $64.0 M 39% $165.5 M $68.8 M 42% $4.8 M 7% 2025-26 2024-25 vs 2025-26
December 31, 2025
Revenues
December 31, 2024
2024-25
General Fund
Proposed Mid-Year Adjustments
4 Proposed General Fund Revenue Adjustments
5 A B C D
1 Revenue by Category
FY 2026
Adopted Budget
FY 2026 Recommended
Mid-Year Adjustments
FY 2026
Adjusted Budget
2 Property Tax 33.8 0.00 33.8
3 Sales Tax 54.9 (2.76) 52.1
4 Utility User Tax 13.9 0.25 14.1
5 Franchise Tax 7.4 0.05 7.5
6 Property Transfer Tax 10.0 0.00 10.0
7 Emergency Communication Access Fee (911) 4.0 0.00 4.0 8 Business License Tax 6.6 0.24 6.8
9 Other Tax 2.0 0.00 2.0
10 Subtotal Taxes $132.5 M ($2.2 M) $130.3 M
11 Charges for Services 3.6 0.27 3.9
12 Interest & Property Income 3.6 0.66 4.2
13 Fines, Fees & Forfeitures 0.4 0.00 0.4
14 Intergovernmental 1.0 0.64 1.6
15 Licenses & Permits 5.3 0.00 5.3
16 Interdepartmental 2.9 0.00 2.9
17 Other/ Transfers 0.8 0.01 0.8
18 Subtotal Other $17.5 M $1.6 M $19.1 M
19 Total Revenue $149.9M ($0.6 M) $149.3 M
Proposed General Fund Expenditure Adjustments
6 A B C D
Expenditures by Department
FY 2026
Adopted Budget
FY 2026
Proposed Budget
Adjustment
FY 2026
Adjusted Budget
1 General Administration 9.4 0.00 9.4
2 Council, Clerk, City Attorney,
3 City Manager and Human Resources
4 Finance 5.0 0.00 5.0
5 Police 49.7 0.00 49.7
6 Fire 34.5 0.00 34.5
7 Recreation and Parks 5.9 0.23 6.1
8 Human Services 3.2 0.00 3.2
9 Library 9.7 0.00 9.7
10 Public Works 15.9 0.03 15.9
11 Community Development 10.9 0.00 10.9
12 Non-Departmental 4.5 0.00 4.5
13 Debt Service 0.4 0.00 0.4
14 Total Operating Expenditures 149.1 0.26 149.3
15 Transfers 7.0 (0.35) 6.6
16 17 Total Expenditures and Transfers 156.1 ($0.1) 156.0 Proposed General Fund Expenditure Adjustments
7 A B
Mid-Year Requests FY 2026
Impact ($)
1 Instructor payments and supplies for increased Recreation programming/Offset by revenue $144,000 2 Enhanced Cherry Festival marketing for increased festival footprint/Offset by revenue $10,000 3 Additional wi-fi receivers to increase festival footprint/Offset by revenue $20,000 4 Three stream recycling stations for community centers/Offset by revenue $10,000 5 Additional picnic reservation signage installation/Offset by revenue $10,000 6 Haas Bridge expenses for mitigation and restoration $29,022 7 Citywide median landscaping/Offset by revenue $17,000 8 Bank service charges to reflect increased deposit pick up $20,000 9 General Fund Proposed Operating Subtotal $260,022
10 Eliminate Parking Fund subsidy from General Fund (Transfer) ($347,000) 11 General Fund Proposed Operating & Transfer Total ($86,978) Proposed General Fund Impact Summary
A B C D E
1 General Fund FY 2026
Adopted Budget
FY 2026
Amended Budget
FY 2026
Recommended
Mid-Year
Adjustments
FY 2026
Adjusted Budget
(=C+D)
2 Beginning Fund Balance $54.7 $69.5 $69.5 $69.5
3 4 Revenue 149.9 150.0 (0.6) 149.4
5 Expenditures 149.1 149.1 0.3 149.4
6 Transfers 6.9 6.9 (0.4) 6.6
7 Prior Year Carryover + Budget
Amendments 0.0 9.4 0.0 9.4
8 9 Net Change in Fund Balance (6.1) (15.4) (0.6) (16.0) 10 11 Ending Fund Balance $48.6 $54.1 $68.9 $53.5
8 *Beginning fund balanced updated in FY 2026 Amended Budget based on FY 2025 Year-End Balance.
General Fund Forecast (Updated)
9 B C D E F G H I J K L M N O P
2024 2025 2025 2026 2027 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Actual Budget Actuals Adopted Adopted Adjusted Adjusted Est. Est. Est. Est. Est. Est. Est. Est.
Revenues
1 Total Revenues $144.7M $143.4M $147.7M $149.9M $154.4M $149.3M $152.9M $156.0M $159.5M $163.2M $167.1M $167.7M $171.7M $176.5M $181.8M 2 3 Total Operating Expenditures $135.5M $154.8M $144.3M $149.1M $155.7M $149.3M $156.1M $158.8M $164.1M $167.9M $171.8M $174.7M $177.8M $180.6M $183.9M 4 Total Other Sources/(Uses) - Transfers $24.0M $9.3M $8.8M $7.0M $4.9M $6.6M $4.9M $6.5M $6.7M $6.8M $5.5M $5.7M $8.3M $6.0M $6.2M 5 6 Total Expenditures and Transfers $159.5M $164.1M $153.1M $156.1M $160.6M $155.9M $161.0M $165.3M $170.8M $174.7M $177.3M $180.3M $186.1M $186.6M $190.0M 7 Prior Year Carry Over $9.4M
8 Total Expenditures and Transfers Adjusted $165.3M
9 10 Net Change in Fund Balance -$14.7M -$20.7M -$5.4M -$6.1M -$6.1M -$16.0M -$8.1M -$9.3M -$11.3M -$11.5M -$10.2M -$12.6M -$14.5M -$10.1M -$8.2M 11 12 Beginning Balance $90.2M $75.5M $74.9M $54.7M $48.6M $69.5M $53.5M $45.4M $36.1M $24.9M $13.3M $3.2M -$9.4M -$23.9M -$34.0M 13 Ending Balance $75.5M $54.7M $69.5M $48.6M $42.5M $53.5M $45.4M $36.1M $24.9M $13.3M $3.2M -$9.4M -$23.9M -$34.0M -$42.2M 14 15 Ending Balance as % of Expenditures for Economic Uncertainties 30.4% 23.2% 38.6% 20.0% 15.2% 25.0% 20.2% 14.0% 6.7% -0.3% -6.2% -13.3% -21.2% -26.5% -30.5% A
Non-General Fund
Proposed Mid-Year Adjustments
10 Proposed Non-General Fund Expenditure Adjustments
A B C
1 Fund Mid-Year Request FY 2026 Impact ($)
2 Environmental Services (594) Filemaker support for upgrade and maintenance $17,580 3 Environmental Services Fund Mid-Year Requests Total $17,580 4 5 Facilities Maintenance (687) Increase in maintenance costs for facility repairs and maintenance $37,000 6 Facilities Maintenance (687) Increase in grounds repair and maintenance; increase in need for pressure washing $30,000 7 Facilities Maintenance Fund Mid-Year Requests Total $67,000 8 9 Stormwater (598) Prop 218 efforts/work postponed until FY 27. ($300,000) 10 Stormwater Fund Mid-Year Requests Total ($300,000)
11 12 Capital Projects Fund (210) Move Parking Lot Repair Project (CIP) from FY 27 to FY 26 $300,000 13 Capital Projects Fund Mid-Year Requests Total $300,000 11 Finance Committee Action Requested
Accept the FY 2026 MidYear Financial Report
Review and recommend the proposed FY 2026
Budget adjustments to City Council for
Consideration and Approval
12