Finance Committee
March 25, 2026

Finance Committee
March 25, 2026
Proposed
FY 2027 Mid-Cycle
Update
Background
➢ April 23, 2025 – FY 2026 & FY 2027 Biennial Budget (Proposed) Finance Committee • FYs 2026 & 2027 – Expenses (less transfers) should be equal to projected revenue • Beginning in FY 2028 – All expenses should be equal to projected revenue ➢ May 12, 2025 – FY 2026 & FY 2027 Biennial Budget (Proposed) Finance Committee ➢ June 2, 2025 – FY 2026 & FY 2027 Biennial Budget (Proposed) City Council ➢ June 16, 2025 – FY 2026 & FY 2027 Biennial Budget (Adopted) City Council • FY 2026 Adopted Budget – Balanced
• FY 2027 Adopted Budget – Projected Use of Fund Balance/Reserves ✓ Council granted staff more time to identify ways to close the structural deficit in a meaningful way with clear understanding of the impacts on the organization and community ✓ Council directed staff to present FY 2027 Mid-Cycle Update with a Balanced Budget and no projected use of fund balance/reserve in future years
2 Meeting Date: March 25, 2026
Sept - Jan
FY 2027 Mid-Cycle
Review and Update
March April
May
July
Council Retreat
Community Engagement (2)
Finance Committee
FY 2027
Mid-Cycle Update
City Council
Work Session
FY 2027
Mid-Cycle Update
City Council
Adoption
Commencement of
FY 2027 Mid-Cycle
Update
Where We’ve Been...And Where
We’re Headed
1 2
3 4
5 3 Meeting Date: March 25, 2026
Council’s Principles for Balancing the Budget
(use as guidelines to develop and evaluate budget choices)

1. Prioritize core services; no department is immune to reductions

2. Pursue efficiencies

3. Retain City reserves at 20% for economic uncertainty + $5M for major emergencies (define what triggers the $5M) – no increase or decrease

4. Refrain from adding net new projects or programs unless there is an identified revenue source

5. Commit to minimize service reductions that impact the community and avoid layoffs

6. Preserve the health and safety of City employees

7. Retain the ability to train employees and maintain a positive work environment

8. Focus management and administrative staff time on core service delivery and approved major projects – “first things first”

9. Communicate impacts and be transparent about reductions 4 Meeting Date: March 25, 2026
Understanding the Importance of
City Reserve / Fund Balance
What is Fund Balance?
6 ➢ What is Fund Balance?
• Represents the difference between the City’s total assets and current/future liabilities. It essentially shows the net available resources in that fund at a given point in time. • Categories of Fund Balance:
• Nonspendable – Resources that cannot be spent.
• Restricted – Resources with external restrictions (i.e., grants). • Committed – Set aside for specific purposes by formal government action. • Assigned – Intended for specific purposes but not legally restricted (i.e., encumbrances). • Unassigned – Available for any purpose.

Meeting Date: March 25, 2026
What is Fund Balance? (cont.)
7 ➢ What is a Targeted Fund Balance?
• A targeted fund balance percentage refers to the desired level of reserves a government or organization aims to maintain in its General Fund.
• The Government Finance Officers Association (GFOA) recommends that general-purpose governments maintain unrestricted fund balance in their General Fund of at least two months (or approximately 16.7%) of regular operating expenditures (excluding transfers). ➢ Why is a targeted 20% fund balance important?
• Ability to pivot for unexpected expenses without resulting in direct to significant service reductions or borrowing.
• Improved ability to weather economic downturns.
• Ability to remain operational during natural disasters. • May impact / improve credit ratings, leading to lower borrowing cost. • Enhanced financial stability and resilience.

Meeting Date: March 25, 2026
8 General Fund Reserve Policy - Current
➢The current reserve policy meets the following
objectives of the City:
• Ensure financial stability
• Maintain operations in times of economic uncertainty
➢The City’s current reserve policy sets the following
targeted reserve levels:
• Economic Uncertainty – 20% of budgeted General Fund
expenditures, excluding any transfers; and
• Major Emergency – Establish a goal of maintaining a
target balance of $5,000,000; and
• Undesignated Fund Balance – The Undesignated Fund
Balance remains in the General Fund until allocation by the City Council to another designated reserve or fund
Meeting Date: March 25, 2026
General Fund Reserve Policy
Major Emergency Designation
What can the $5M be used for?
Major emergencies Recovery from an earthquake, firestorm, and other disasters
What is the Major Emergency designation in the Reserve Policy? Established goal of maintaining a target balance of $5M to response to major emergencies 9 Meeting Date: March 25, 2026
10 Best Practices & Comparable Policy Levels
Agency Reserve Fund Level
Dublin N/A
Oakland 7.5%
Berkeley 16.7%
Fremont* 16.7%
Pleasanton 16.7%-25.0%
Emeryville 20.0%
Hayward 20.0%
Piedmont 20.0%
San Leandro** 20.0% + $5M
Union City 20.0%
Alameda*** 20.0% + 5%
Albany 25.0%
Livermore 30.0%
Newark 30.0%
GFOA (Recommendation) 16.7%
Notes:
*City of Fremont – Policy also includes a Budget Uncertainty Reserve with no set reserve level **City of San Leandro – Policy also includes $5M for Major Emergencies ***City of Alameda – Policy also includes 5% for Economic Uncertainty Meeting Date: March 25, 2026 General Fund Overview
General Fund Financial Forecast
with Proposed Changes
(Update as of March 2026 )
$8.2M - $3M + 0.7M
12 *Reflects mid-year adjustments and encumbrance carryovers of previously authorized budget appropriations (FY 2025). Meeting Date: March 25, 2026 ($ in millions)
Proposed
General Fund
Reductions
City Manager’s Office
Finance
Human Resources
Information Technology
Administrative &
General
Government
City Manager’s Office & Legislative
Baseline Budget FY 2027:
$7,997,060
Proposed Cumulative
Net Change:
$234,160 or 3%
# Description FY 2027
Reduction
FY 2028
Reduction
FY 2029
Reduction
Cumulative
Reduction Impact
1 Eliminate City Support for
School Crossing Guard
Program
($90,000) ($90,000)
School Districts will assume funding for its school
crossing guard program
2 Reduce Community
Sponsorships for Events
and Community Investment
Grants
($60,000) ($60,000)
Reduced sponsorships for events, and grant
opportunities for investment in the Community
3 Reduce General Operating
Expenses ($84,160) ($84,160)
Minimal operational impact on reduced expense for
travel, training, memberships, supplies, and consultant services
4 Reduce Election Costs* ($232,050) No impact
Total ($376,210) ($90,000) ($0) ($234,160)
*one-time reduction
15 Meeting Date: March 25, 2026
Finance
Baseline Budget FY 2027:
$5,134,613
Proposed Cumulative
Net Change:
$439,322 or 9%
# Description FY 2027
Reduction
FY 2028
Reduction
FY 2029
Reduction
Cumulative
Reduction Impact
5 Business License
Administration ($255,000) ($255,000)
This will allow for the transition to the new ERP system and evaluation of existing City resources to bring
business license administration in-house
6 Reduce Contract Services ($163,000) ($163,000) Alignment for new investment management services, and reduction in contract accounting services
7 Reduce General Operating
Expenses ($21,322) ($21,322) Reduce expense for travel and training, memberships, supplies Total ($184,322) ($255,000) ($0) ($439,322)
16 Meeting Date: March 25, 2026
Human Resources
Baseline Budget FY 2027:
$2,904,209
Proposed Cumulative
Net Change:
$156,447 or 5%
# Description FY 2027
Reduction
FY 2028
Reduction
FY 2029
Reduction
Cumulative
Reduction Impact
8 Eliminate Part-Time
Administrative Assistant II ($29,447) ($29,447) Through attrition, eliminate part-time Administrative Assistant II. Tasks will be absorbed by existing staff. 9 Reimagine Employee
Recognition Events ($24,250) ($12,000) ($10,000) ($46,250) Reimagine employee recognition and appreciation
initiatives, such as service and retirement awards. Eliminate employee events, such as recognition breakfast and
appreciation picnic. Impacts morale.
10 Reduce Contract Services ($20,000) ($5,000) ($40,000) ($65,000) Reduce funds for external investigations or other employee relations services
11 Reduce General Operating
Expenses ($15,750) ($15,750)
Reduce expenses for training, memberships, supplies,
wellness services, and City-wide employee
development/tuition reimbursement
Total ($60,000) ($46,447) ($50,000) ($156,447)
17 Meeting Date: March 25, 2026
Information Technology
Baseline Budget FY 2027:
$9,830,715
Proposed Cumulative
Net Change:
$739,970 or 8%
# Description FY 2027
Reduction
FY 2028
Reduction
FY 2029
Reduction
Cumulative
Reduction Impact
12 Eliminate Vacant Business Systems
Analyst ($221,489) ($221,489)
Reduction of 25-30% in business application support capacity across the organization. Affected applications include Accela, SeeClickFix and GIS
13 Reduce Consulting Services &
Eliminate Year-Up Interns ($212,430) ($212,430)
IT estimates that response times for technology incidents and service requests reduced up to 20%. Reduced project management support
14 Eliminate Public Wifi Access ($108,131) ($108,131) Eliminate public Wi-Fi in downtown and parks 15 Reduce General Operating Expenses ($124,968) ($124,968) Minimal impact 16 Reduce Central Services
Printing/Paper for Efficiencies ($35,084) ($35,084) Minimal impact 17 Reduce redundant internet providers ($45,000) ($45,000) Minimal potential impact. Redundant internet providers reduced from 3 to 2
18 Eliminate Eden Maintenance &
Support ($88,757) ($88,757) No impact. Eliminate maintenance and support with current ERP solution through transition to Workday 19 Citywide Software & New Cyber
Security Tools $95,889 $95,889 These increases are needed to continue cybersecurity roadmap improvements Total ($543,082) ($196,888) ($0) ($739,970)
18 Meeting Date: March 25, 2026
Library
Recreation & Parks
Human Services
Culture
&
Services
Library
Baseline Budget FY 2027:
$9,768,577
Proposed Cumulative
Net Change:
$863,404 or 9%
# Description FY 2027
Reduction
FY 2028
Reduction
FY 2029
Reduction
Cumulative
Reduction Impact
20 Changes to Weekly Library Hours ($649,357) ($649,357) Eliminate vacant staffing; Main and Manor newly closed on Mondays, resulting in 7 less hours per week each; Mulford increase from 12 to 28 hours/week. Change will result in 2 additional hours per week in the library system.
21 Eliminate Library Public Arts Fund ($50,000) ($50,000) Alterative funding needed to continue City-sponsored
Comedy Festival beyond 2027; eliminate Arts Grants
Program.
22 Reduce Digital & Physical Collection
Allocation ($81,711) ($81,711)
Inability to acquire requested materials; need to prioritize popular materials; LINK+ utilized more often, which will require more staff intervention and longer public wait times; longer holds lists due to discontinuation of lease program. 23 Reimagine Library Program Offerings ($11,822) ($11,822) Continue to offer programming. Reimagination of program delivery through efficiencies
24 Reduce General Operating Expenses ($70,514) ($70,514) Eliminate training, social media boosts, and public magazine subscriptions. Reduce travel, translations, memberships, and supplies.

Total ($863,404) ($863,404)
20 Meeting Date: March 25, 2026
Recreation & Parks
Baseline Budget FY 2027:
$11,772,008
Proposed Cumulative
Net Change:
$1,200,385 or 10%
# Description FY 2027
Reduction
FY 2028
Reduction
FY 2029
Reduction
Cumulative
Reduction Impact
25 Increase in Programmatic/Rental
(Revenue) ($566,000) ($140,500) ($10,000) ($716,500)
Increase in programmatic offerings, more rental space available, updated revenue projections based on actuals.

Reducing reliance on General Fund
26 Increase Independent Contractor
Expenses $134,000 $134,000 More programmatic offerings, offset by increased revenue 27 Increase Boys & Girls Lease
Payments $98,232 $98,232 New lease terms. Increase in expense is partially offset by more programmatic offerings resulting in increased revenue 28 Reduce Contract Services ($40,000) ($35,000) ($14,000) ($89,000) Security service reduced to large events/rentals, and eliminate coverage at pools; reduce contract landscape services at City Facilities to 1x per week or less starting in FY29
29 Personnel Cost Shift Away from
General Fund ($203,401) ($203,401) Accounting Update: align costs with work performed at Shoreline 30 Eliminate Two Maintenance
Worker I ($352,668) ($352,668) Through attrition, eliminate two Maintenance Worker I. Elimination may result in less proactive maintenance efforts 31 Reduce General Operating
Expenses ($25,048) ($25,048) Reduce expense for travel and training, memberships, supplies, uniforms, translations, and marketing 32 Reimagine program delivery
through efficiencies ($46,000) ($46,000) Reimagination of program delivery through efficiencies related to field trip transportation, entertainment, and other supplies Total ($648,217) ($175,500) (376,668) ($1,200,385)
21 Meeting Date: March 25, 2026
Human Services
Baseline Budget FY 2027:
$3,820,981
Proposed Cumulative
Net Change:
$550,009 or 14%
# Description FY 2027
Reduction
FY 2028
Reduction
FY 2029
Reduction
Cumulative
Reduction Impact
33 Department Restructuring for
Efficiencies ($541,685) ($541,685) Restructure of department to facilitate operating efficiencies 34 Eliminate Funding for
Congregate Winter Shelter ($50,000) ($50,000) Program was discontinued in FY26 due to a lack of a qualified provider. Staff recommends eliminating funding for this program permanently 35 Reduce Community Agency
Program Grant Funding ($20,000) ($20,000) FY26 funding is $170,000. Change will result in funding of $150,000 starting in FY28 36 Reduce Security Services at
Senior Community Center ($33,792) ($20,000) ($53,792) FY26 funding is $67,584. Change will result in gradual reduction of onsite security presence at the Senior Community Center 37 Eliminate Domestic Violence
Case Management Funding ($50,000) ($50,000) Ongoing case management services following domestic violence crisis intervention may be reduced or eliminated for San Leandro residents 38 Eliminate Shelter Subsidy to
Building Futures ($50,000) ($50,000) Potential funding gap for Building Futures to provide shelter for unhoused individuals 39 Reduce General Operating
Expenses ($22,980) ($22,980) Reduce expense for travel, training, supplies, subscriptions, postage 40 Increase in Independent
Contractor Expenses $75,000 $75,000 Continuation of senior program offerings through independent contractors
41 Restoration of Part-time
Personnel $163,448 $163,448 Restoration of funding for 3 current part-time employees at the Senior Center Total ($387,029) ($90,000) ($72,980) ($550,009)
22 Meeting Date: March 25, 2026
Public Works
Community Development
Public
Infrastructure
Public Works
Baseline Budget FY 2027:
$10,027,130
Proposed Cumulative
Net Change:
$1,000,000 or 10%
# Description FY 2027
Reduction
FY 2028
Reduction
FY 2029
Reduction
Cumulative
Reduction Impact
42 Reduce Third-Party
Encampment Cleanup ($219,800) ($94,022) ($82,728) ($396,550) In FY 2025, 20 encampment cleanups were performed (16
performed by vendor, and 4 performed by City). To date in FY 2026 - 19 encampment cleanups have been performed (15
performed by vendor assistance, and 4 performed by City).

Overall reduction may result in slower response to encampment cleanup.
43 Personnel Cost Shift Away from
General Fund ($100,200) ($184,000) ($96,000) ($380,200) Accounting Update: align costs with work performed on road maintenance and repair. 44 Consultant Cost Shift Away
from General Fund ($180,000) ($180,000) No impact to service delivery. Consultant services will be charged to permit applicant and/or construction project. 45 Reduce General Operating
Expenses ($21,978) ($21,272) ($43,250) Reduced expense for travel, training, memberships, supplies, subscriptions, etc.

Total ($500,000) ($300,000) ($200,000) ($1,000,000)
24 Meeting Date: March 25, 2026
Community Development (1 of 3)
Baseline Budget FY 2027:
$11,052,628
Proposed Cumulative
Net Change:
$1,674,630 or 15%
# Description FY 2027
Reduction
FY 2028
Reduction
FY 2029
Reduction
Cumulative
Reduction Impact
46 Eliminate Vacant Permit Center
Position ($181,832) ($181,832) Internal recruitment of a vacant Permit Center Supervisor role with no backfill. No direct impact to residents or service delivery. 47 Eliminate On-Call Planning
Consultant ($75,000) ($75,000)
Limits the City's ability to engage subject matter experts for complex policy projects, respond to changes in state law, and fulfill Housing Element commitments.
48 Reduce Third-Party Plan
Checking Services for Building
Permits
($25,000) ($25,000) ($50,000) Permit review times may be increased by approximately 10% 49 Reduce General Operating
Expenses ($54,822) ($3,500) ($33,005) ($91,327) Reduce expense for travel, training, memberships, supplies, subscriptions, postage 50 Reallocation of Rent Registry
Program ($648,000) ($648,000) No impact to community or operations. Funding will be approved with creation of new Special Revenue Fund. 25 Meeting Date: March 25, 2026
Community Development (2 of 3)
# Description FY 2027
Reduction
FY 2028
Reduction
FY 2029
Reduction
Cumulative
Reduction Impact
51 Reduce Housing Consultants ($40,000) ($40,000)
Core third-party Tenant / Landlord Services and Housing Assistance Services retained at reduced level;
Discontinue Multi-Family Rental Assistance Program Needs Analysis and Seminars / Outreach to Enhance Housing Mobility (Housing Element)
52 Reduce First Time Home Buyer
Program ($25,000) ($25,000) ($50,000)
Reduced capacity to manage & monitor the City's Below Market Rate (BMR) Program;
Proposed FY 29 reductions will result in loss of third-party contract - Significant increase in City staff time to manually administer the BMR Program;
Reductions & delays in application processing, compliance reviews & annual reporting
53 Reduce Downtown Ambassador
Program Funding ($51,021) ($20,000) ($71,021)
Reduction in service hours for Downtown Safety Ambassadors Increased calls for PD service;
Reduced outreach and de-escalation services downtown; Businesses may see increased impacts from unhoused individuals and the downtown environment may feel less safe and welcoming.
26 Meeting Date: March 25, 2026
Community Development (3 of 3)
# Description FY 2027
Reduction
FY 2028
Reduction
FY 2029
Reduction
Cumulative
Reduction Impact
54 Reduce Event Sponsorship ($32,000) ($1,000) ($33,000) Elimination of monetary sponsorship for SLIA Downtown Events for enhanced music and programming. Increased in-kind assistance from the City - partnerships and equipment, including new city-owned stage.

Reduction of Downtown Farmers Market Support;
55 Reduce Chamber of Commerce
Support ($12,450) ($12,450) Reduction in joint City-Chamber of Commerce activities 56 Reduce Branding & Marketing
Funds ($70,000) ($85,000) ($10,000) ($165,000)
Reduction of City Brand Assessment & Marketing Study & Brand Implementation;
Reduced funds to develop new Economic Development marketing Elimination of San Francisco Business Times advertising / spotlight on San Leandro;
Reduced recruitment of new businesses
57 Eliminate Business Incentive
Program ($157,000) ($157,000) Reduced ability to recruit and assist unique small businesses;Eliminates assistances to shopping centers for upgrades 58 Eliminate Economic Development
Studies ($50,000) ($50,000) ($100,000) Discontinue Arts District Evaluation & Placemaking/Plaza Planning;Eliminate budget for new Economic Development studies Total ($1,258,654) ($214,521) ($201,455) ($1,674,630)
Meeting Date: March 25, 2026
27 Fire
Police
Public
Safety
Fire
Baseline Budget FY 2027:
$36,901,973
Proposed Cumulative
Net Change:
$989,550 or 3%
# Description FY 2027
Reduction
FY 2028
Reduction
FY 2029
Reduction
Cumulative
Reduction Impact
59 Eliminate City’s Retiree Medical
Contribution ($681,298) ($19,076) ($19,610) ($719,984) Discontinuation of the City’s contribution to retiree medical payment to ACFD. 60 Reduce Alternative Response
Unit (ARU) Program ($269,566) ($269,566)
Current ARU: Staffing: 1 RN, 2 Community Health Workers (CHWs), 4 respite beds at medically supported shelter. Proposal would reduce staffing by one CHW, staff with LVN instead of RN, and reduce respite beds from 4 to 2.

Total ($681,298) ($19,076) ($289,176) ($989,550)
29 Meeting Date: March 25, 2026
Police
Baseline Budget FY 2027:
$51,729,464
Proposed Cumulative
Net Change:
$810,161 or 2%
# Description FY 2027
Reduction
FY 2028
Reduction
FY 2029
Reduction
Cumulative
Reduction Impact
61 Revise Personnel Budget for New
Recruits and Vacancy Rates ($554,332) ($554,332) Administrative alignment of personnel costs with retirements, new recruits, and vacancy rates
62 Eliminate Vacant Management
Analyst II (Crime Analyst) ($161,629) ($161,629) Limits transparency and delays in data and intelligence collection 63 Reduce Consulting Services ($57,500) ($57,500) Potential delay in public messaging, delays in hiring of police officers, and recruitment website impact
64 Eliminate Fleet Management
Contract Services ($145,500) ($145,500) Utilize in-house services for efficiencies 65 Reduce General Operating
Expenses ($72,200) ($72,200) Reduce expense for POST training, wellness application, laundry, outreach materials, general supplies, 66 Increase for Full Cost of Animal
Control Contact Services $181,000 $181,000 Animal control services is a legally mandated core service, in which the City must provide this service.

Total ($664,661) ($145,500) ($810,161)
30 Meeting Date: March 25, 2026

MAYOR & COUNCILMEMBERS COMPENSATION

COUNCIL HANDBOOK
• State law limits City Council salaries. All provisions of the Government Code of the State of Califiornia relating to compensation, benefits, and reimbursement for expenses applicable to members of a City Council of a general law city shall apply to Councilmembers in San Leandro. (Section 255, City Charter; Gov. Code § 36516)
• Councilmember compensation is subject to review and re-evaluation in even years, to coincide with new Councilmembers being seated.
31 Meeting Date: March 25, 2026
Old Monthly
Compensation
New Monthly
Compensation
% Change
Councilmembers $1,323 $1,900 43.6%
Mayor $2,646 $3,800 43.6%

MAYOR & COUNCILMEMBERS COMPENSATION

PRIOR COMPENSATION ADJUSTMENT
• The following adjustments became effective January 1, 2025:
32 Meeting Date: March 25, 2026

MAYOR & COUNCILMEMBERS COMPENSATION

POSSIBLE COMPENSATION ADJUSTMENT
• Government Code § 36516 allows for adjustment for each calendar year of:
⚬ 5% for each calendar year since last adjustment
⚬ Equivalent to CA CPI (but not to exceed 10%) for each year since last adjustment • Adjustment would be effective January 1, 2027
33 Meeting Date: March 25, 2026
Summary of Proposed Staffing Changes in FY 2027
Department FY 2027
Adopted FTE
FY 2027
Proposed FTE Change
City Manager’s Office 17.4
Finance 17.0
Human Resources 11.3
Information Technology 15.0
Library 36.9 (4.1)
Recreation & Parks 50.2
Human Services 10.9 (2.0)
Public Works 72.4
Community Development 34.5 (1.0)
Fire 40.4
Police 138.4 (1.0)
City Council 7.0
TOTAL 455.1 (8.0)
34 Meeting Date: March 25, 2026
Interfund Transfer
➢What is an Interfund Transfer?
• An interfund transfer occurs money is sent from one fund to another fund within the same government
➢Why are Interfund Transfers Used?
• To Fund Large Projects
• Subsidization of Budgets
• Comply with legal or policy requirements
➢Ongoing vs. One-Time Interfund Transfers
• Ongoing: Occurs regularly (i.e. annual support for a program) • One-time: Often to address shortfall or fund a capital project ➢Interfund transfers in San Leandro
• Transfers to Capital Infrastructure to Subsidize Funding Needs • Transfer to Pension Trust
35 Meeting Date: March 25, 2026
General Fund Transfers

A B C D E F
1 General Fund Transfers FY 2025
Actuals
FY 2026
Budget
FY 2027
Budget
FY 2028
Budget
FY 2029
Budget
2 Capital Funds
3 ADA Transition Plan $150,000 $150,000 $150,000 $154,500 $159,135 4 Capital Projects Fund $15,700
5 City Building Major Maintenance $3,185,750 $600,000 $600,000 $618,000 $636,540 6 City Park Major Maintenance $475,000 $475,000 $475,000 $489,250 $503,928 7 Fleet Fund $1,500,000 $1,500,000 $1,500,000
8 Street Rehabilitation $3,874,781 $3,600,000 $3,600,000 $3,708,000 $3,819,240 9 IT Fund - Capital $73,699
10 Capital Funds Total $7,774,930 $6,325,000 $4,825,000 $6,469,750 $6,618,843 11 Operating Funds
12 Fleet Fund $4,943
13 Insurance Fund $3,819
14 Links Shuttle Service $50,000 $50,000 $50,000 $51,500 $53,045 15 Parking Fund Subsidy $376,718
16 Pension Trust $457,968
17 Stormwater Fund $225,000
18 Street Maintenance $635,826
19 Operating Funds Total $1,529,274 $275,000 $50,000 $51,500 $53,045 20 Total General Fund Transfers $9,304,204 $6,600,000 $4,875,000 $6,521,250 $6,671,888 36 Meeting Date: March 25, 2026
General Fund Transfers (FY 2027)

A B C D
1 General Fund Transfers FY 2027
Budget
FY 2027
Reduction
FY 2027
Proposed
2 Capital Funds
3 ADA Transition Plan $150,000 $150,000
4 City Building Major Maintenance $600,000 ($300,000) $300,000 5 City Park Major Maintenance $475,000 ($200,000) $275,000 6 Street Rehabilitation $3,600,000 ($500,000) $3,100,000 7 Capital Funds Total $4,825,000 ($1,000,000) $3,825,000 8 Operating Funds
9 Links Shuttle Service $50,000 $50,000
10 Operating Funds Total $50,000 $50,000
11 Total General Fund Transfers $4,875,000 ($1,000,000) $3,875,000 37 Meeting Date: March 25, 2026
General Fund Transfers (FY 2028)

A B C D
1 General Fund Transfers FY 2028
New Baseline
FY 2028
Reduction
FY 2028
Proposed
2 Capital Funds
3 ADA Transition Plan $154,500 $154,500
4 City Building Major Maintenance $318,000 ($150,000) $168,000 5 City Park Major Maintenance $289,250 ($100,000) $189,250 6 Fleet Fund $1,500,000 $1,500,000
7 Street Rehabilitation $3,208,000 ($750,000) $2,458,000 8 Capital Funds Total $5,469,750 ($1,000,000) $4,469,750 9 Operating Funds
10 Links Shuttle Service $51,500 $51,500
11 Operating Funds Total $51,500 $51,500
12 Total General Fund Transfers $5,521,250 ($1,000,000) $4,521,250 38 Meeting Date: March 25, 2026
General Fund Transfers (FY 2029)

A B C D
1 General Fund Transfers FY 2029
New Baseline
FY 2029
Reduction
FY 2029
Proposed
2 Capital Funds
3 ADA Transition Plan $159,135 $159,135
4 City Building Major Maintenance $186,540 ($86,540) $100,000 5 City Park Major Maintenance $203,928 ($103,928) $100,000 6 Fleet Fund $1,500,000 $1,500,000
7 Street Rehabilitation $2,569,240 ($809,532) $1,759,708 8 Capital Funds Total $4,618,843 ($1,000,000) $3,618,843 9 Operating Funds
10 Links Shuttle Service $53,045 $53,045
11 Operating Funds Total $53,045 $53,045
12 Total General Fund Transfers $4,671,888 ($1,000,000) $3,671,888 39 Meeting Date: March 25, 2026
Establishing Sustainable Fleet Fund
➢ Ongoing Fleet Replacement Needs
• City Fleet
• Police Fleet
• Fire Fleet
➢ Ongoing operational needs to provide core services
• Procurement Challenges
• Public safety fleet
• Fire Fleet - Estimated date of delivery is approximately 4-5 years from date of order ➢ Establishing a Sustainable Fund Balance for Future Purchases • Engaged a consultant to assist with finalizing an in-depth review of the City’s fleet fund, including the development of a robust fleet fund policy and comprehensive 10-year forecasting tool to better understand ongoing funding needs, and Geneal Fund impacts • Vital for the continuation of providing core services, and avoid critical failure • Return to Finance Committee with an update on Fleet Policy, Forecasting Tool, and Funding Plan in May/June
40 Meeting Date: March 25, 2026
American Rescue
Plan Act
American Rescue Plan Act (ARPA)
➢What is ARPA?
› Signed into law on March 11, 2021, to provide a $1.9 trillion economic stimulus package to address impacts due to the COVID-19 crisis › $65 billion in direct federal relief to cities to address economic and fiscal impacts
› ARPA dollars intended to assist Cities and communities recover from the impacts of the COVID-19 crisis
➢How did it impact San Leandro?
› San Leandro received $18.6 million in local relief
› All ARPA dollars were obligated by December 2024, and currently on target to be fully expended by December 2026
42 Meeting Date: March 25, 2026
Summary of ARPA Appropriations
43 Project Category Initial ARPA Appropriation
Public Health $4,556,532
Negative Economic Impacts $2,847,528
Public Health – Negative Impact $303,398
Revenue Replacement $9,238,562
Emergency Relief $93,464
Surface Transportation $1,600,000
Total $18,639,484
Meeting Date: March 25, 2026
ARPA Projects/Programs – Ongoing General Fund Costs

A B C D E F
Program/Project
Initial ARPA
Appropriation
Ongoing
Baseline
Costs
FY 2027 FY 2028 FY 2029
1 Alternative Response Unit $1,189,598 $877,530 $877,530 $877,530 $607,964 2 Housing Counseling/Fair Housing Support $40,000 $79,304 $70,000 $70,000 $70,000 3 Downtown Safety Ambassadors $70,000 $351,021 $351,021 $300,000 $280,000 4 Add 1 Project Mgr. Position (Human Services) $232,480 $277,193 $277,193 $277,193 $277,193 5 Citywide Beautification and Community
Preservation $1,381,897 $430,000 $210,200 $116,178 $33,450 6 Expanded Homeless Outreach Team Services $382,224 $123,450 $123,450 $123,450 $123,450 7 Long-term Navigation Center* $750,000 $1,780,000 $1,784,086 $1,943,090 $1,950,250 8 TOTAL $4,046,199 $3,918,498 $3,693,480 $3,707,441 $3,342,307 44 *Three-year funding obligation
Meeting Date: March 25, 2026
Critical Failure Funding
Needs
Proactive Investment to Avoid Critical Failure
City Hall
Painting
$500k
Marina
Community
Center
Painting
$500k
Fire Station
#10 Roof
Replacement
$625k

CAD-RMS
$3M
• FY 2027 - $750k
• FY 2028 - $1.5M
• FY 2029 - $750k
46 Meeting Date: March 25, 2026
Potential Options for Funding
Critical Needs

1. Use $5M Major Emergency Reserve Fund
➢CAD-RMS

2. Increase expenditure reductions to fund critical
failure needs
47 Meeting Date: March 25, 2026
General Fund 10-Year Forecast WITHOUT Reductions
(Updated as of March 2026)
($ in millions)
*Reflects mid-year adjustments and encumbrance carryovers of previously authorized budget appropriations (FY 2025). 48 Meeting Date: March 25, 2026
Next Steps
City Council
Presentation April
City Council
Adoption
May
49 Meeting Date: March 25, 2026
Recommendation to
Present to Full Council
Provide Feedback & Input on
Proposed Budget Reductions
Discussion &
Feedback
Exhibit to Presentation
Proposed Reductions by
Program Area
Homelessness & Housing
Homelessness Response
Description (Dept)
Cumulative
Ongoing
Reduction
Percent
Reduction of
FY 2027 Baseline
Impact
Decrease Alternative Response Unit
(ARU) Staffing and Beds
(ACFD)
($269,566) 31%
• Reduced ARU staffing from 4 to 3; Reduced respite beds from 4 to 2 • Decreased support to follow up on clients
• Increased risk of program staff burnout
• Impacts to clinical decision making - prescriptions, 5150 decisions & referrals
Eliminate Shelter Subsidy for Building
Futures
(HS)
($50,000) 100% • Unhoused individuals will not have access to emergency winter shelter • FY27 Remaining Funding for Building Futures Shelters $192,822 Eliminate
Third-Party Encampment Cleanup
(PW)
($396,550) 90%
• In FY 2025, 20 encampment cleanups were performed (16 performed by vendor, and 4 performed by City).
• To date in FY 2026 - 19 encampment cleanups have been performed (15 performed by vendor assistance, and 4 performed by City). • Overall reduction may result in slower response to encampment cleanup.

Eliminate Winter Shelter Funding
(HS) ($50,000) 100% • No City-sponsored emergency winter shelter for unhoused individuals • Program was not offered in FY 2026
Total Reduction ($766,116)
Proposed Reductions:
$766,116
52 Meeting Date: March 25, 2026
Homelessness & Housing
Housing Program
Description (Dept)
Cumulative
Ongoing
Reduction
Percent
Reduction of
FY 2027
Baseline
Impact
Reallocate Rent Registry
Program to New Special
Revenue Fund
(CD)
($648,000) N/A • General Fund Loan necessary to cover startup program costs • Eliminate FY 2027 General Fund allocation
Reduce Housing Division
Consulting Budget
(CD)
($40,000) 31%
• Reduced budget for third-party Tenant/Landlord Services and Housing Assistance Services
• Discontinue Multi-Family Rental Assistance Program Needs Analysis and Seminars/Outreach to Enhance Housing Mobility (Housing Element) Reduce First Time Home Buyer
Program
(CD)
($50,000) 61%
• Reduced capacity to manage & monitor the Below Market Rate (BMR) Program • Likely loss of third-party contract due to FY29 reductions • Significant increase in City staff time to manually administer the BMR Program • Reductions & delays in application processing, compliance reviews & annual reporting Total Reduction ($738,000)
Proposed Reductions:
$738,000
53 Meeting Date: March 25, 2026
Homelessness & Housing Services
FY 2027 Funding FY 2028 Funding FY 2029 Funding
Lewelling Interim Housing & Drop-in Center $1,927,714 $1,943,090 $1,950,249 Homelessness Prevention Rental Assistance $1,368,952 $0 $0 Alternative Response Unit $877,530 $877,530 $607,964
San Leandro Shelter/Sister Me Home $192,822 *$200,446 *$201,724 Homelessness Mobile Outreach $123,450 $123,450 $123,450 Tenant Landlord Services $70,000 $70,000 $70,000
Housing Assistance Services $11,000 $11,000 $11,000
Downtown Safety Ambassadors $351,021 $300,000 $28,000
Prohousing Incentive Program – Affordable housing support $666,667 $333,333 $0 Total $5,589,156 $3,658,403 $2,790,663
*Estimated
All Funding (General and Grant) for Homelessness and Housing Services FY 2027 – FY 2029
54 Meeting Date: March 25, 2026
Description (Dept)
Cumulative
Ongoing
Reduction
Percent
Reduction of
FY 2027 Baseline
Impact
Eliminate Business
Incentive Program (CD) ($157,000) 100% • No ability to financially assist restaurants, shopping centers and small businesses (childcare, retail) in making strategic & impactful upgrades Eliminate Economic
Development Studies
(CD)
($100,000) 100%
• No Arts District Evaluation & Placemaking/Plaza Planning • Loss of near-term opportunities to enhance cultural identity & vibrancy through placemaking & arts-related improvements
• Eliminated budget for Economic Development studies going forward Reduce Event Sponsorship
(CD/CMO) ($43,000) 71%
• Elimination of monetary sponsorship for SLIA Downtown Events for enhanced music and programming. Increased in-kind assistance from the City - partnerships and equipment, including new city-owned stage.
• Reduction of Downtown Farmers Market Support
• Reduction in City Manager’s Office table sponsorships at galas & events Reduce Chamber of
Commerce Support (CD) ($12,450) 20% • Reduction in Chamber of Commerce activities – likely elimination of Small Business Week or Restaurant Week Reduce Branding &
Marketing Funds (CD) ($165,000) 92%
• Reduction of City Brand Assessment & Marketing Study & Brand Implementation • Reduced funds to develop new Economic Development marketing • Elimination of San Francisco Business Times advertising/stories • Reduced recruitment of new businesses
Total Reduction ($477,450)
Economic Development
Economic Development Programs
Proposed Reductions:
$477,450
55 Meeting Date: March 25, 2026
Description (Dept)
Cumulative
Ongoing
Reduction
Percent
Reduction of
FY 2027 Baseline
Impact
Change Weekly Library
Hours
(LIB)
($649,357) 11%
• Elimination of vacant staffing
• Main and Manor newly closed on Mondays, resulting in 7 less hours per week each. • Mulford increase from 12 to 28 hours/week
• Resulting in 2 additional hours of operation in the library system Reduce Digital & Physical
Collection Allocation (LIB) ($81,711) 24%
• Inability to acquire requested materials; need to prioritize popular materials • Use LINK+ more often, requires more staff intervention and longer public wait times • Longer holds lists due to discontinuation of lease program • Specialized popular collections like Lucky Day, Library of Things, and World Languages will be reduced or unable to expand or replace items
Eliminate Library Public
Arts Fund (LIB) ($50,000) 100% • Alterative funding needed to continue City-sponsored Comedy Festival beyond 2027• Eliminate Arts Grants Program.

Reduced Community
Investment Grants
(CMO)
($60,000) 60% • Reduce table sponsorships at events
• Reduce community investment grants
Reduced Contract Services
for City Facility
Maintenance
(REC)
($14,000) 9%
• Contract Services to City Facilities will reduce to 1x per week or less, including o Plant trimming
o Litter and leaf removal
o Irrigation repairs
• Negative impact on public perception of City facilities • Higher long-term costs for plant replacement and repairs Total Reduction ($855,068)
Quality of Life Proposed Reductions:
$855,068
56 Meeting Date: March 25, 2026
Public Safety Proposed Reductions:
$161,021
Description (Dept)
Cumulative
Ongoing
Reduction
Percent
Reduction of
FY 2027 Baseline
Impact
Eliminate Crossing Guard
Subsidy
(CMO)
($90,000) 100% • School District will assuming funding of its crossing guard program Reduce Downtown Safety
Ambassador Program
(CD)
($71,021) 20%
• Reduction will result in decreased service hours, including the likely elimination of the morning shift and reduced days of service
• Increased calls for PD service
• Reduced outreach and de-escalation services downtown
• Businesses may see increased impacts from unhoused individuals, and the downtown environment may feel less safe and welcoming
Total Reduction ($161,021)
57 Meeting Date: March 25, 2026