TO: Philippe Eskandar, City Manager
FROM: Hillary Guirola-Leon, Finance Director
DATE: April 24, 2026
SUBJECT: BUDGET SUBMISSION FOR FY 2026-27
FINANCE DEPARTMENT & NON-DEPARTMENTAL
FINANCE DEPARTMENT
YEAR-END SUMMARY (FY 2025-26 Adopted BUDGET VS ESTIMATED) The Department is anticipated to end the fiscal year with a savings of $2,421 or -0.3% below the current budget. The primary reasons are listed below:
Personnel costs decrease expected due to vacancy in the department.
FY 2025-26 FY 2025-26 Bud. Vs Est. Bud. Vs Est.
Description Budget Estimated Diff $$ Diff %%
Personnel 529,973 $ 527,573 $ (2,400) $ -0.5%
Services & Supplies 327,873 327,852 (21) 0.0%
Total: 857,846 $ 855,425 $ (2,421) $ -0.3%
FY 2026-27 PROPOSED BUDGET
(Adopted FY 2025-26 Budget vs Proposed FY 2026-27 )
Personnel
The Department’s Full Time Equivalent (FTE) will remain at 4.00 FTE, unchanged from the current budget.
Personnel proposed budget is $638,084 which represents a $16,811 or 2.7% increase from the adopted budget.
The increase is due to the negotiated MOU increase for FY 2026-27 as well as increases in cafeteria benefits expected.
Services & Supplies
Services & Supplies proposed budget is $202,820 which represents an increase of $12,443 or -
6.5% from adopted budget. The primary reasons for the increase are due to the following:
The City’s awarded the audit contract to LSL CPAs during FY 2025-26. The contract amount increased by $6,650 from prior year.
Sales tax audit services with HDL also increased by $1,000 from FY 2025-26. Other Contract Services-IT also increased by $3,270 from FY 2025-26. This is due to an increase to the annual maintenance for our financial software SpringBrook.
FY 2025-26 FY 2026-27 YOY Budget
YOY
Budget
Description Budget Proposed Diff $$ Diff %%
Personnel 621,273 $ 638,084 $ 16,811 $ 2.7%
Services & Supplies 190,377 202,820 12,443 6.5%
Total: 811,650 $ 840,904 $ 29,254 $ 3.6%
NON-DEPARTMENTAL
YEAR-END SUMMARY (FY 2025-26 ADOPTED BUDGET VS ESTIMATED) The Department is anticipated to end the fiscal year with a savings of $37,315 or -1.1% below the current budget. The primary reasons are listed below:
Savings in Staff Development of $10,000 due to having a vacancy in the department. Property Tax admin fee came in less than budgeted by $12,797 There was also a decrease in Utilities
FY 2026-27 PROPOSED BUDGET
(Adopted FY 2025-26 Budget vs Proposed FY 2026-27 )
Personnel
In FY 2026-27, the City is projecting a 10% increase in retiree medical expenditures.
Unfunded Accrued Liability (UAL)
The CALPERS UAL required contribution for FY 2026-27 increased by $115,473 and is based on the CalPERS annual valuation.
FY 2025-26 FY 2025-26 Bud. Vs Est.
Bud. Vs
Est.
Description Revised Budget Estimated Diff $$ Diff %%
Personnel 189,500 189,500 - $ 0.0%
Unfunded Accrued Liability 988,976 987,894 (1,082) 0.0% Services & Supplies 2,085,352 2,049,119 (36,233) -1.7%
Debt Service - - 0.0%
Total: 3,263,828 $ 3,226,513 $ (37,315) $ -1.1%
FY 2025-26 FY 2026-27 YOY Budget
YOY
Budget
Description Budget Proposed Diff $$ Diff %%
Personnel 189,500 208,450 $ 18,950 $ 10.0%
Unfunded Accrued Liability 988,976 1,104,449 115,473 11.7% Services & Supplies 2,078,201 2,451,467 373,266 18.0%
Debt Service - - - 0.0%
Total: 3,256,677 $ 3,764,366 $ 507,689 $ 15.6%
Services & Supplies
Services & Supplies proposed budget increased by $373,266 form the adopted budget for FY 2025-26. Additional details are provided below:
• An increase of $354,785 is due to an increase in the city’s insurance premium. • An increase of $17,786 is due to the city’s contract with SDI for Managed IT services.
Debt Service
The City has no Debt Service expenses in FY 2026-27 as the City’s Pension Obligation Bond matured in FY 2023-24.
ATTACHMENTS
A. Department Narrative (Purpose, Description, FY 2025-26 Accomplishments, FY 2026-27 Objectives, & Operational Dashboard)
B. Department Organizational Chart
C. Department Tie-Out Sheets
DEPARTMENT PURPOSE
The mission of the Finance Department is to create and sustain quality information dissemination, high standards of industry compliance, financial predictability, and fiscal sustainability.
DEPARTMENT DESCRIPTION
The Department is responsible for the preparation and administration of the City’s annual operating and capital budgets, long-range financial planning, accounting and analysis, debt management, cash management, collections, accounts receivable, accounts payable, and payroll.
The Department keeps and maintains books, accounts and a general accounting system for the City in accordance with applicable City and governmental accounting and auditing requirements, standards, and guidelines. The Department also assists the City Manager’s Office in managing the City’s information technology systems and manages any grants that the City receives.
FISCAL YEAR 2025-26 ACCOMPLISHMENTS
Finalized the City’s Fiscal Year 2024-25 Audited Annual Comprehensive Financial Report (ACFR) with no material weaknesses or significant deficiencies Received the Operating Excellence Award for the Fiscal Year 2025-26 Operating Budget from the California Society of Municipal Finance Officers Received the Distinguished Budget Presentation Award for the Fiscal Year 2025-26 Operating Budget from the Government Finance Officers Association Implemented new Citywide fees based on the Citywide Fee Study Update Conducted a Sewer Rate Study and Sewer Service Charge starting FY 2025-26 Received the Certificate of Achievement for Excellence in Financial Reporting Award for the Fiscal Year 2024-25 ACFR from the Government Finance Officers Association Filled vacancy in the position of Accounting Manager/Controller FISCAL YEAR 2026-27 OBJECTIVES
Evaluate revenue enhancement opportunities to ensure the City is able to provide for the long-term stability of services
Ensure sales tax is reinvested in San Marino and controlled by the residents who pay it Look for improved efficiencies through use of the City’s ERP system and other available software technology
Obtain a “clean audit” for the eighth year
Submit Fiscal Year 2026-27 Operating Budget to the Government Finance Officers Association for the Distinguished Budget Presentation Award as well as the California Society of Municipal Finance Officers for the Operating Excellence Award Submit Fiscal Year 2025-26 ACFR to the Government Finance Officers Association for the Certificate of Achievement for Excellence in Financial Reporting Award
FINANCE DEPARTMENT
OPERATIONAL DASHBOARD
Description
FY 2024-25 FY 2024-25 FY 2025-26
Total Year to Date Year to Date
(July – January) (July – January)
Revenues $37,716,779 $19,232,110 $19,561,472
Expenditures $35,915,699 $21,873,880 $21,529,992
Overtime expenses $2,035,092 $1,115,610 $1,015,144
General Fund Balance* $21,249,466 $16,774,748 $18,065,411 Overall Cash Balance*
$36,874,092 $38,498,486 $32,900,183 (in bank)
*Balance numbers are reported as the last balance recorded for the year or time period, not totals.
$7,053
$1,637,512
$671,794
$1,325,405
$1,106,984
$10,182,399
$4,630,326
$5,823,049
$2,712,029 $2,298,766 $2,420,909
$1,975,368 $3,374,180
$2,925,691
Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26
FY 2025-26 REVENUES AND EXPENDITURES
Revenues Expenditures
$59,086
$179,584
$135,197
$161,320
$129,679
$121,682
$228,596
Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26
FY 2025-26 Overtime Expenditures
$15,370,101
$14,293,419 $12,091,447 $10,995,942 $10,127,557
$16,360,777
$18,065,411
$28,819,484 $27,945,761 $26,345,855 $24,401,895
$23,558,742
$30,560,577 $32,900,183
Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26
FY 25-26 GENERAL FUND AND CASH BALANCE
General Fund Balance Overall Cash Balance (in Bank)
Finance Director
Accounting
Manager /
Controller
Account
Clerk
Account
Clerk
Finance Department
FY 2023-24 FY 2024-25 FY 2026-27
Actual Actual Budget Estimated Proposed
Full-Time
Finance Director 1.00 1.00 1.00 1.00 1.00
Accounting Manager/Controller 1.00 1.00 1.00 1.00 1.00
Account Clerk 2.00 2.00 2.00 2.00 2.00
Total Full-Time FTE 4.00 4.00 4.00 4.00 4.00
Total Part-Time FTE - - - - -
Department Total FTE 4.00 4.00 4.00 4.00 4.00
Expenditures by Type:
Personnel 541,104 558,177 621,273 527,573 638,084
Services & Supplies 361,915 1,471,039 190,377 327,852 202,820 Total by Type 903,019 $ 2,029,216 $ 811,650 $ 855,425 $ 840,904 $ Expenditures by Fund:
General Fund 742,551 101 863,797 801,150 844,925 830,404 Prop A Transit Funds 160,468 207 1,165,419 10,500 10,500 10,500 Workers Compensation Fund - 595 - - - -
Total by Fund 903,019 $ 2,029,216 $ 811,650 $ 855,425 $ 840,904 $ GL # Personnel
101-11-4001-0000 Full Time Salaries 396,174 447,480 495,197 415,197 493,477 101-11-4002-0000 Part Time Wages - - - -
101-11-4004-0000 Overtime - - - -
101-11-4006-0000 Medicare 5,543 6,181 7,180 6,280 7,155 101-11-4008-3080 Retirement-457 Plan 3,400 5,671 7,600 1,100 7,200 101-11-4008-6050 Retirement-PARS - - - -
101-11-4008-6160 Retirement-PERS 85,044 36,362 40,953 38,453 40,662 101-11-4010-0000 Cafeteria Benefit 50,943 62,483 67,943 66,543 87,190 101-11-4013-0000 Auto Allowance - - 2,400 - 2,400
101-11-4016-0000 Retiree Medical Benefits (OPEB) - - - - 595-11-4015-0000 Workers Comp - Current Employees - -
Total Personnel 541,104 $ 558,177 $ 621,273 527,573 $ 638,084 $ GL # Services & Supplies
101-11-4150-0000 Other Contract Services 135,903 184,457 82,305 219,800 90,456 101-11-4150-0500 Other Contract Services-IT 37,869 58,513 61,605 61,605 64,875 101-11-4204-0000 Books & Periodicals - - - - -
101-11-4290-0000 Election - -
101-11-4316-0000 Equipment Repair & Maintenance 7,471 43,762 8,663 8,663 8,958 101-11-4332-0000 Fees to Outside Agencies 930 902 935 976 1,011
FINANCE DEPARTMENT
FY 2025-26
Operating Budget Summary
Operating Budget Detail
Authorized Positions (Full-Time Equivalents)
FY 2023-24 FY 2024-25 FY 2026-27
Actual Actual Budget Estimated Proposed
FINANCE DEPARTMENT
FY 2025-26
101-11-4376-0000 Materials & Supplies 2,211 2,697 3,748 3,748 3,814 101-11-4396-0000 Memberships & Dues 488 1,368 1,621 1,985 1,973 101-11-4398-0000 Mileage 57 - 300 300 300
101-11-4412-0000 Postage 6,000 8,160 8,500 8,500 8,500
101-11-4420-0000 Printing 5,244 4,230 4,750 4,750 4,750 101-11-4468-0000 Staff Development 2,265 1,235 3,300 3,875 4,234 101-11-4480-0000 Travel & Meetings 3,009 294 4,150 3,150 3,450 101-11-4500-1980 Utilities-Electricity - - - - -
101-11-4500-4950 Utilities-Natural Gas - - - - -
101-11-4500-9025 Utilities-Telecommunications - - - -
101-11-4500-9460 Utilities-Water - - - -
101-11-4950-0001 Equipment Cost Allocation - - - -
207-11-4208-0750 Bus Transportation-Chamber - - - -
207-11-4208-0500 Prop A Transfer - 1,000,000 - - -
207-11-4208-1330 Bus Transportation-Dial a Ride 10,468 15,419 10,500 10,500 10,500 207-11-4208-8140 Bus Transportation-SMUSD Youth 150,000 150,000 - - - Total Services & Supplies 361,915 $ 1,471,039 $ 190,377 $ 327,852 $ 202,820 $ Total Operating Expenditures 903,019 $ 2,029,216 $ 811,650 $ 855,425 $ 840,904 $ FY 2023-24 FY 2024-25 FY 2026-27
Actual Actual Budget Estimated Proposed
Expenditures by Type:
Personnel 162,690 286,502 189,500 # 189,500 208,450
Unfunded Accrued Liability - 837,822 988,976 # 987,894 1,104,449 Services & Supplies 1,328,365 2,270,167 2,078,201 2,049,119 2,451,467 Debt Service 574,888 - - - -
Total by Type 2,065,943 $ 3,394,491 $ 3,256,677 $ 3,226,513 $ 3,764,366 $ Expenditures by Fund:
General Fund 1,490,855 101 2,418,916 1,976,999 1,948,986 2,129,903 CDBG Fund 200 204 - - - -
American Rescue Plan Fund - 245 - - - -
Debt Service Fund 574,888 401 - - - -
General Liability Fund - 596 975,575 1,279,678 1,277,527 1,634,463 Total by Fund 2,065,943 $ 3,394,491 $ 3,256,677 $ 3,226,513 $ 3,764,366 $ GL # Personnel
101-08-4016-0000 Retiree Medical Benefits (OPEB) * 162,690 286,502 189,500 189,500 208,450 101-08-4008-6161 Retirement-PERS (UAL) - 837,822 988,976 987,894 1,104,449 245-00-4006-0000 Medicare - -
245-00-4001-0000 ARPA Bonus - -
Total Personnel 162,690 $ 1,124,324 $ 1,178,476 $ 1,177,394 $ 1,312,899 $ GL # Services & Supplies
101-08-4150-0000 Other Contract Services - 6,440 7,200 7,200 7,200 101-08-4150-0500 Citywide IT Contract Services 260,146 252,784 260,015 260,648 279,962 101-08-4150-0750 Cell Phone Contract Services 48,514 48,578 53,000 51,088 54,000 101-08-4150-0775 City Hall Credit Card Fees 27,278 33,491 36,450 36,450 36,450 101-08-4324-0000 Parking Lot Lease-SMUSD 35,339 36,006 36,686 36,686 37,379 596-08-4356-3412 Insurance Premiums JPIA 975,575 1,279,678 1,277,527 1,634,463 101-08-4376-0000 Materials & Supplies-COVID-19 1,305 1,320 1,320 1,320 1,360 101-08-4376-0020 Materials & Supplies-Civil Unrest - - - - 101-08-4376-0500 IT Contract Services-COVID-19 - - - - - 101-08-4399-0000 Non-Capitalized Equipment - - - -
101-08-4376-2025 2025 Windstorm Expenses - 327,170 - - - 101-08-4468-0000 Staff Development 9,288 20,000 10,000 20,000 101-08-4495-0000 Property Tax Admin Fee (SB2557) 237,850 264,359 277,580 264,783 274,000
NON-DEPARTMENTAL
FY 2025-26
Operating Budget Summary
Operating Budget Detail
FY 2023-24 FY 2024-25 FY 2026-27
Actual Actual Budget Estimated Proposed
NON-DEPARTMENTAL
FY 2025-26
101-08-4500-1980 Utilities-Electricity 70,702 76,517 84,500 83,345 85,845 101-08-4500-4950 Utilities-Natural Gas 2,411 2,329 2,449 2,449 2,532 101-08-4500-9025 Utilities-Telecommunications 12,644 12,677 13,323 13,323 13,776 101-08-4500-9460 Utilities-Water 869 5,316 6,000 4,300 4,500 101-08-4950-0001 Equipment Cost Allocation ** 631,107 218,318 - - - 204-08-4150-0000 Other Contract Services 200 - - -
204-08-4399-0000 Non-Capitalized Equipment - - -
Total Services & Supplies 1,328,365 $ 2,270,167 $ 2,078,201 $ 2,049,119 $ 2,451,467 $ 401-00-4360-0000 Debt Service Interest Expense 29,888 - - - 401-00-4402-00000 Debt Service Principal Repayment 545,000 - - - Total Debt Service 574,888 $ - $ - $ - $ - $
Total Operating Expenditures 2,065,943 $ 3,394,491 $ 3,256,677 $ 3,226,513 $ 3,764,366 $ Expense also includes $100k annual contribution to CERBT Trust Fund through FY 2024-25. No contribution budgeted in FY 2025-26. ** Note: Equipment Cost Allocation is a non-cash budget item for equipment depreciation. This budget changes year over year depending on what equipment over $5k was purchased and is depreciated over the estimated life of the equipment.
In prior years, the Equipment Cost Allocation was allocated to the respective Department that possesses the equipment. * Note: Retiree Medical Benefits (OPEB) is for Other Post Employment Benefit budget to pay for retiree medical cost benefits.