San Mateo City Council
June 2, 2025

able 2: Operating Budget Changes (in thousands)
Budget Message
Transmittal of Proposed Budget

City Manager’s Letter of Transmittal

Honorable Mayor and Members of the City Council:

I am pleased to present for your review and consideration the proposed Fiscal Year (FY) 2025-26 operating budget and the FY 2025-26 Capital Budget along with the City’s Capital Improvement Program (CIP) for the next five years. This budget reflects our commitment to providing essential City services, investing in our community, and ensuring long-term fiscal health.

Overall, the proposed citywide budget, including both operating and capital, is $333.5 million for fiscal year 2025-26. This budget continues to provide funding for core services, Council priorities, and community needs.

The five-year CIP reflects the City’s commitment to improve and maintain City facilities and infrastructure, by investing $270 million over the next five years in capital projects. Although there were some modest operating increases to enhance service levels in targeted areas; such as providing resources for public safety, transportation, and storm and flood controls; the City’s headcount and expenditures for FY 25-26 are in line with those from FY 24-25.

Limited increases are proposed for FY 25-26 because the City continues to estimate a structural budget deficit as part of continuing to fund essential City services. Given the economic impacts; such as continued high inflation and interest rates, a slowdown of sales in the housing market, sales tax revenues flattening, and State Vehicle License Fee (VLF) revenue shortfalls; coupled with increased costs for providing city services and increased unfunded pension liability costs and payments; the City’s fiscal stability is threatened. We are currently able to bridge the funding gap in the interim using our strong reserves from prudent financial stewardship from the current Council and previous Councils’ and administrations, but this is not sustainable.

Especially as San Mateo continues to face financial headwinds, such as funding the modernization of our aging City facilities and infrastructure, which impacts public safety, accessibility, and quality of life. Right now, we have over $350 million in capital projects that have no funding sources, posing a major financial hurdle. In addition, we are facing regional, state, federal and global economic uncertainty. For all these reasons we continue to further develop a multi-pronged multi-year financial sustainability plan to work toward the long- term fiscal health of the City and continue to provide essential services to our community.

Although we are mindful of the fiscal challenges at hand, the goal of this budget message is to provide an overview of the components of the FY 2025-26 Citywide Operating Budget and the FY 2025-26 Capital Budget and Five-Year CIP. This year’s budget, as in the past, focuses on weaving together the City Council priorities and the service needs of the community with the fiscal reality and challenges facing San Mateo as well as other cities within San Mateo County. The following sections of the letter of transmittal provide a summary of how that is accomplished in this year’s budget and how the City plans to accomplish this in future budgets.

Transmittal of Proposed Budget

City Council Priorities
The City Council priorities for FY 2025-26 are part of a larger picture that starts with the City Council Vision and Strategic Direction and leads to the annual, two to five-year, and five-year plus priorities included in this budget book. Below are the City Council adopted FY 2025-26 priorities:

 Establish policies to decarbonize existing buildings and infrastructure and eliminate methane gas use by 2030
 Create a comprehensive, ongoing Citywide Community Outreach and Engagement Program  Create a Capital Infrastructure Plan or process for reinvesting in infrastructure to allow the City to evaluate City facilities and assets when upgrades are needed  Deliver the Clean Water Program
 Explore limiting overnight parking of RVs in commercial corridors  Develop policy on regulating mobile vending/food trucks  Develop City Council Code of Conduct with measurable consequences  Develop an Ordinance to prohibit gas leaf blowers
 Explore funding opportunities for fund Youth Service Officers at schools  Complete speed surveys in order to fully enforce automobile speeding  Conduct research on equitable access to electric vehicle charging infrastructure  Explore the implementation of a Customer Response Management or 311 system  Implement Phase I of the Central Park Master Plan
 Address structural issues at the Marina Library
 Establish Senior Hubs at MLK and Beresford Centers
 Explore piloting a City Grant Fund
 Conduct an Annual Transportation Review of progress on all ongoing plans, including project updates and key metrics such as City mode share, collision, and safety data These annual priorities are reflected in the FY 2025-26 Citywide Operating Budget and the FY 2025-26 Capital Budget. These budgets advance the priorities by investing in process improvement efforts for key programs, assessing the development of new policies, providing a comprehensive review of various infrastructure needs, and providing support to new programs and community engagement efforts where feasible.

In addition to these priorities, City staff developed Department Equity Initiatives in FY 2024-25 to further the goals outlined in the City’s adopted Diversity, Equity, and Inclusion (DEI) Strategic Framework. A summary of the progress made by Departments on these Equity Initiatives is provided in the Appendix of this budget document.

Transmittal of Proposed Budget

2025-26 Citywide Operating Budget
The table below summarizes the 2025-26 business plans for Citywide operating expenditures:

CITYWIDE OPERATING BUDGET 2025-26

PROJECTED
BUDGET
General Fund $ 175.3
Special Revenue and Debt Service Funds 30.7 Enterprise Funds 65.9
Total Operating Budget $ 272.0
In millions. Operating costs include debt service payments.

The City implements a two-year budget cycle, which requires that each department submit two one-year expenditure plans and revenue estimates to the City Council for approval. This is the second year of the two-year budget cycle in which City staff makes recommendations to the City Council for amending the second-year plan.

The proposed FY 2025-26 Citywide operating budget is $272 million, which is an increase of approximately

6.5% over the adopted FY 2024-25 budget. This change reflects the general increase in the cost of operating the City at existing service levels and primarily shows increases in personnel costs due to negotiated bargaining unit contracts and benefits costs.

As outlined, this second year of the two-year budget cycle proposes few changes from the FY 24-25 budget.

The proposed FY 2025-26 budget generally recommends maintaining merit staffing levels by adding only one two-year limited term FTE to put the City at 550 Full Time Equivalents (FTE) and including two reallocations.

Also, resources have been added to the personnel costs to fully fund the adopted labor agreements for all labor groups and provide for increases in benefits such as health insurance costs. A few changes have been made to non-personnel operating costs, but they represent only about $.07 million, a small portion of the overall operating budget.

A summary of the changes to the personnel budget, as well as all other operational increases to the baseline budget, are included in the Appendix section of this document.

General Fund
The General Fund is the primary funding source for our core services. The FY 2025-26 proposed budget, including transfers out, is $187.7 million, an increase of 4.0% over the adopted FY 2024-25 budget of $180.4 million. This increase is the result of several factors, including rising personnel costs, especially increases due to negotiated labor contracts and benefits, rising pension costs, and the City’s continued contribution to capital projects.

The proposed budget reflects a moderate growth in most of the General Fund revenues. The revenue projection is based on the assumptions that the high inflation and interest rate environment will continue in the next year, at least, and that the property tax in-lieu of vehicle license fees (VLF) shortfalls will be backfilled by Transmittal of Proposed Budget

the State of California although at less than 100%. These key assumptions are discussed in detail in the Budget Overview section of this budget document.

Due to the increase in costs and the uncertainty in some revenues, it is projected that the City will have a budget deficit of $15.2 million for FY 2025-26 and will require use of the Budget Stabilization Reserve to fund everything currently programmed in the budget. Even though what is currently programmed includes discretionary items, the fact remains that the City will need to begin prioritizing among many competing resource demands over the next few years to ensure we remain in a good financial position.

Measure S
Measure S, the 0.25% transactions and use tax extension, generates about $7 million in tax revenue each year.

This critical funding source makes a significant difference for our community by providing much-needed support for both operations and capital improvements.

The proposed FY 2025-26 budget showcases how Measure S funding is allocated to enhance our City core services and infrastructure. In addition to providing $2.2 million to support ongoing police, library, parks and recreation programs, the budget includes $3 million from Measure S to support CIP projects. These projects include $1.25 million for the Marina Library improvements and reconstruction, $0.6 million for Police Department technology projects, $0.1 million for the Quick-Build Program to improve bike and pedestrian safety, $0.8 million for the Citywide Street Rehabilitation program, $0.9 million set-aside for synthetic turf field replacement, $0.35 million for Citywide Play Court Resurfacing, and $0.3 million for the Los Prados Court Lighting Improvements. On May 27, 2025, the Measure S Oversight Committee reviewed and recommended the Measure S 2025-26 budget, which has been incorporated in this proposed budget document.

General Fund Revenues 2025-26 Proposed Budget$172.5 million Property TaxSales TaxProperty Transfer TaxTransient Occupancy TaxBusiness License TaxRecreation and Golf Service ChargesAll Other General Fund Expenditures 2025-26 Proposed Budget$187.7 million PersonnelOperatingSMC Fire and Fire Legacy CostsTransfers Out Transmittal of Proposed Budget

2025-26 Capital Budget and 2025-30 Five-Year Capital Improvement Program (CIP) The Capital Improvement Program (CIP) for FY 2025-26 totals $61.5 million. Major projects include the Clean Water Program, Smooth Streets Program, storm and flood control improvements, roadway safety and bicycle/pedestrian initiatives:

Clean Water Program - The City continues to move closer to completion of the $1 billion Clean Water Program where tremendous progress has been made to upgrade and expand the wastewater treatment plant and the collection systems to provide high-quality services to our community for decades to come. A grand opening ribbon cutting for the upgraded wastewater treatment plant is scheduled for September 2025. The program leveraged low interest loans with the Environmental Protection Agency (EPA) through the Water Infrastructure Finance and Innovation Act (WIFIA) and the State of California’s State Revolving Fund (SRF) loans to save rate payers over $170 million compared to issuing debt through the municipal bond market.

Smooth Streets Program – The City will continue to commit at least $8 million annually as part of the ongoing program to expedite street resurfacing and reconstruction. This program is funded partially by Measure S, and special revenues such as gas tax, Measure A, Measure W, and Road Maintenance and Rehabilitation Account (RMRA) funds.

Storm and Flood Controls – In January 2024, the Community Flood and Storm Protection Fee Ballot Measure was approved by property owners, passing with 51.78% of the vote. This measure will generate approximately $4 million annually in stormwater fee revenue, providing consistent and sustainable funding for significant improvements to our stormwater system. The new funding will be allocated to immediate storm preparedness and mitigation improvements, the development of an updated stormwater master plan, and capital projects aimed at enhancing our stormwater infrastructure.

Roadway and Bike/Pedestrian Improvements - Our 2025–30 CIP allocates $12.9 million for roadway and bike/pedestrian capital improvements over the next five years. In the upcoming fiscal year, we are committing $4.1 million to these initiatives, including $1.7 million for safe routes to school projects and $0.1 million for the Quick Build Mobility Program to enhance bike and pedestrian safety.

In addition to these major initiatives, we have several other important capital and infrastructure projects programmed in the budget for FY 2025-26. Some of the notable projects include:

 Marina Library Branch Reconstruction Project – Investing an additional $1.25 million from Measure S funding and $1 million from the General Fund to fix the Marina Library structural issues and make improvements and renovation. The total project will cost about $8.07 million. This project is funded approximately 60% by city funds and 40% by grants. Our investment today will ensure our residents have a great library facility to enjoy and benefit from for years to come.  Joinville Pool Assessment and Improvements – A thorough assessment of the pool and swim center led to a multiphase plan that includes immediate repairs to ensure continued operation, along with the design and implementation of short-term upgrades to meet code compliance.  Martin Luther King Jr. Community Center Modernization and Visioning Process – Following a Facilities Assessment for the center, the City plans to conduct a visioning process and add new features to help the Martin Luther King Jr. Center meet the criteria for a Community Resilience Hub. The design and features of the Resilience Hub are in development.

Transmittal of Proposed Budget

 Citywide Facilities Conditions Assessment - The purpose of this Citywide program is to evaluate each City owned facility on an individual basis, analyze potential issues with the physical conditions, develop cost estimates and use that information to prioritize maintenance and repairs in the most efficient manner. Initial results of the assessment are expected to be shared with the community in Fall 2025.  Peninsula/Delaware Intersection Safety Improvements - This project will implement a priority project as identified in the Local Roadway Safety Plan. Improvements include updated signal hardware, protected left-turn phase, and various other safety improvements.  Development of Updated Citywide Stormwater Master Plan – This project is on-going and will replace the City’s outdated Storm Drain Master Plan previously conducted in 2004. Project details include condition assessment of existing infrastructure, development of new models, master planning, and prioritization of long-term capital improvements for flood control.  Storm System Dredging - This project is for initiating design, permitting, and environmental review for a future large-scale dredge of Marina Lagoon, which would increase stormwater retention capacity, restore recreational water depths, and improve water quality.

These projects are a testament to the investment and commitment we make to our community even as we face economic and revenue uncertainties. These priority projects, along with other major capital investments, are discussed in detail in the Capital Improvement Program section of this budget document.

Fiscal Reality and Challenges
While we prioritize Council goals and community needs, this budget is developed amidst a complex and uncertain financial environment. We must acknowledge the current fiscal realities, including high inflation, a slowdown in the housing market, economic uncertainty, and potential revenue shortfalls. Uncertainties related to our tax revenues raise concerns about our financial sustainability. Additionally, we also face increasing costs to provide services, ongoing pension obligations, and funding limitations for CIP projects.

Tax Revenue Uncertainties
San Mateo relies on tax revenues to fund our core services. Although secured property tax remains a stable revenue source, this revenue base is projecting a moderate 4.0% annual growth for the next few years.

Sales tax, as the City’s second largest tax revenue, is projected to stay flat with a moderate 1-2% annual growth. Due to a major hotel closure, the City has a new baseline for estimated annual TOT of $4.0 million in FY 2025-26 and beyond, down from the previous $7 million baseline. Property transfer tax fluctuates with economic conditions. Due to high interest rates and a stable, but slow housing market, property transfer tax is anticipated to stay flat with an $8.6 million revenue projection for the upcoming year. In addition, the City continues to face major financial uncertainty due to the State’s property tax in-lieu of vehicle license fee (VLF).

VLF is a key component of the City’s property tax revenues, making up roughly 18% of our total property tax revenues, and about 10% of the total General Fund revenues. The absence of reliable funding sources for VLF from the State of California has become a major threat to the City’s fiscal sustainability.

The City’s FY 2025-26 proposed budget assumes that the State will eventually honor its VLF obligations to the City. Our share of FY 2023-24 county-wide VLF shortfalls is $6.6 million, and we estimated this to be backfilled in FY 2025-26 by at least 50%. However, if this assumption does not hold, the General Fund’s FY 2025-26 Transmittal of Proposed Budget

budget deficit will increase by $3.3 million from the current $15.2 million to $18.5 million. Furthermore, if the State budget deficit situation does not improve, our share of the FY 2024-25 VLF shortfalls ($7.1 million) will be at risk, potentially pushing the City’s projected FY 2026-27 budget deficit from the current $7.6 million to $14.7 million.

Pension Costs
Pension obligations have placed a significant strain on our budget. CalPERS pension contribution requirements have increased significantly over the years due to a number of factors, including CalPERS lower-than-expected investment returns and changes in actuarial assumptions. The City’s unfunded pension liability is currently just over $300 million. Citywide pension costs are expected to continue to go up in FY 2025-26 as they did in FY 24- 25, primarily due to the CalPERS’s investment loss of -6.2% in FY 2022 and the 5.8% investment gain in FY 2023, which did not meet the CalPERS investment projections. For FY 24-25, the General Fund pension total increased about $6 million and an additional increase of $1 million is expected in FY 25-26. The City’s overall pension costs are estimated to keep increasing through FY 2030-31 , after which pension requirements are expected to gradually ramp down, provided CalPERS can achieve its 6.8% annual investment return target for future years.

To demonstrate the impact of these increases on General Fund operations, the table below compares expected pension expenditures over the next ten years with our projected sales tax revenue, which is the second largest General Fund revenue source.

Table 1: Comparison of General Fund 10-Year Pension Costs and Local 1% Sales Tax Projection (in millions)

FISCAL YEAR

GENERAL FUND

PENSION

NORMAL COSTS

GENERAL FUND

PENSION

UAL REQUIREMENT

GENERAL FUND
TOTAL

PENSION COSTS

PROJECTED
1% SALES TAX

REVENUE

PENSION AS A

PERCENTAGE OF
1% SALES TAX
2024-25 $5.8 $19.4 $25.2 $20.5 123%
2025-26 $5.9 $20.5 $26.4 $20.2 131%
2026-27 $6.0 $21.6 $27.6 $20.4 135%
2027-28 $6.0 $22.4 $28.4 $20.8 136%
2028-29 $6.0 $24.3 $30.3 $21.2 143%
2029-30 $6.0 $24.7 $30.7 $21.7 142%
2030-31 $6.1 $25.0 $31.1 $22.1 141%
2031-32 $6.1 $24.3 $30.4 $22.5 135%
2032-33 $6.1 $24.1 $30.2 $23.0 131%
2033-34 $6.1 $22.9 $29.0 $23.4 124%
* Pension normal cost presents the annual cost of providing pension benefit for active employees based on their one-year service. **UAL (Unfunded Actuarial Liability) requirement is the annual payment based on the amortized dollar amount of the City’s unfunded pension liability.

As the table indicates, our entire local 1% sales tax is not sufficient to cover the General Fund’s share of the annual pension contribution requirement. This example demonstrates the type of pressure the increase in pension expenditures will put on the General Fund and City operations, as these expenditures are consuming Transmittal of Proposed Budget

an increasing share of our overall operating revenues and limiting our ability to make new service-level commitments.

Aging City Facilities and Infrastructure
We all know that parks, open space, playgrounds, libraries, vibrant recreation facilities, smooth and safe streets, storm and flood controls, and clean water infrastructure are essential for a thriving community. The City is committed to continuing to invest in our infrastructure and improve our facilities to a level the community deserves. However, maintaining and improving our aged City facilities and infrastructure requires significant funding, and right now, our resources are limited.

Streets and Transportation
Currently, we rely on special revenue sources (Gas Tax, Measure A, Measure W, Measure M, and RMRA) totaling about $8.7 million in FY 25-26 to fund streets and transportation projects. However, the Smooth Streets Program alone requires annual funding of $7.8 to $8.0 million, leaving little for other critical projects.

To address the funding gap, we often turn to the General Fund and Measure S for extra funding support. This may become more and more challenging as the General Fund itself is experiencing a significant budget deficit.

Aging City Facilities
The General Fund, which supports all City facility repairs and improvements, faces increasing pressure.

Although General Fund and Measure S combined provide about $7 million annually to fund CIP projects, it is still not enough to meet all the needs.

Many City facility projects were put on hold or deferred due to funding issues, such as improvement projects for the 2nd and El Camino Real parking garage, structural repair of the Main Library Garage, waterproofing and painting the Main Street, Central, and Transit Parking Garages, all of which highlight the significant need related to City facilities.

Although funding is a challenge, I believe, by working collaboratively, exploring funding options, and prioritizing needs, we can create a plan to build the infrastructure and facilities our community deserves. To ensure we're investing wisely, during FY 2025-26, the City will complete its comprehensive Citywide facilities assessment. This assessment will help us understand our facilities’ condition, prioritize needs, and develop a strategic plan for investing in and protecting our facilities. We will keep you updated on the results of the Citywide facilities assessment and future plans.

Ongoing Fiscal Sustainability Actions
Our City has a proud tradition of fiscal responsibility. I appreciate the City Council's prudent fiscal discipline, which has led us to a strong financial position. Thanks to careful and proactive planning, we’ve built a strong financial position with healthy reserves. This financial prudence allows the City to maintain current service levels, invest in necessary improvements, and continue funding important capital projects for the upcoming fiscal year without having to take drastic measures in response to the current revenue uncertainties.

However, the City’s General Fund ten-year forecast, which is included in this proposed budget, has highlighted the long-term financial challenges we face.

Transmittal of Proposed Budget

Table 2: General Fund Ten-Year Forecast – Middle-Ground Scenario (in millions)

The forecast, based on the middle-ground forecasting scenario, assumes that the State and the County will reach an agreement to fix the VLF funding issue, making VLF revenues more reliable, while potentially reduced.

This forecast also assumes the City sets aside $25 million of its overall reserves to the CIP Investment Reserve in FY 25-26. Under this scenario, the City can maintain its service levels for a few more years. However, as the table shows, in four years, if economic conditions do not improve and no actions are taken to address the budget imbalance, we may risk depleting the City’s Budget Stabilization and Pension Stabilization Reserves.

Furthermore, by the fifth year, our General Fund balance may fall short of maintaining the 15% Contingency Reserve.

To balance the budget, the strategy is straightforward – increase revenues and/or reduce spending. Given the current economic uncertainty and unresolved VLF shortfall issue, our revenues are expected to remain flat with only moderate annual growth. This growth will be insufficient to keep pace with our expenditures. To maintain the City’s fiscal sustainability, the City is evaluating all the potential revenue enhancement and expense reduction options. Revenue enhancement options include nurturing the economic health of our local businesses, supporting the development of new housing units, reviewing and optimizing fee increases, seeking grant funding, assessing new revenue opportunities, and considering potential future revenue ballot measures.

At the same time, the City may employ citywide cost containment strategies to reduce expenses, such as reducing discretionary spending, cutting non-essential programs, implementing hiring freezes, eliminating current vacancies, reducing future vacancies through attrition, and/or implementing furloughs with corresponding service reductions. Additionally, investment in capital projects may be reduced or deferred.

Several variables will impact our financial outlook in the coming years. If the housing market rebounds, our tax revenue forecast may improve. If inflation returns to the Federal Reserve’s 2% target, it will ease some of the rising cost pressures we are currently facing. Also, as long as the current economic uncertainties are managed and we continue to avoid a recession, the City has time to prepare for improved financial sustainability. And we will continue to advocate for VLF funding and look for a long-term solution. While we must be prepared for the worst, we hope that these factors, will turn in our favor.

10-YEAR FORECASTGENERAL FUND2024-25 Estimates2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 REVENUESTotal Revenues 173.9 172.5 180.5 182.8 190.0 195.0 195.1 203.1 211.7 216.6 224.0 EXPENDITURESOperating Expenses 166.2 171.3 178.1 182.9 189.9 195.5 200.3 204.6 209.7 213.8 218.8 Transfers to CIP 8.1 8.9 6.4 6.4 6.4 6.5 6.5 6.5 6.5 6.8 6.8 Transfers Out - Debt Service & Other 6.0 3.5 3.4 3.4 3.4 3.4 3.4 3.4 3.4 3.4 3.4 Total Expenditures 180.3 183.7 187.8 192.7 199.7 205.3 210.1 214.5 219.6 223.9 229.0 Surplus / (Deficit)(6.4) (11.2) (7.3) (9.9) (9.7) (10.4) (15.0) (11.4) (7.8) (7.3) (4.9)General Fund - Beginning Fund Balance 117.9 111.5 75.3 68.0 58.1 48.4 38.1 23.0 11.6 3.8(3.6)General Fund - Ending Fund Balance $111.5 $75.3 $68.0 $58.1 $48.4 $38.1 $23.0 $11.6 $3.8($3.6) ($8.5) Transmittal of Proposed Budget

Future of San Mateo
Despite the challenges, we are excited about the great momentum and positive steps we are taking to improve the quality of life for our residents, businesses and visitors. Some of these improvements and initiatives include the new wastewater treatment plant coming online this year, the new upcoming Central Park Playground, East Hillsdale Park improvements, Marina Library modernization, the police’s successful retail task force and establishment of a new Real Time Information Center, transportation and street resurfacing projects, pedestrian mall enhancements and hosting new cultural celebrations. Looking ahead, we’ll soon adopt a new Strategic Plan focused on housing, transportation, infrastructure, climate resiliency and essential services— priorities shaped by the community’s and Council’s input. This plan will help us implement the recently adopted General Plan 2040 while creating a sustainable business plan. In the coming year, I remain focused on attracting and retaining top talent, strengthening communications, and deepening community engagement. I invite you to stay involved, share your insights, and help shape San Mateo’s future.

Closing Remarks
Through the budget process, it is my goal to provide you with a thoughtful, strategic, and informative budget plan that aligns with the City Council’s priorities and addresses the community’s needs. As we navigate the uncertainties of an evolving economy, we remain committed to utilizing our resources to provide great levels of service to our community and make immediate investments in our infrastructure while upholding fiscal discipline and building resiliency to withstand the challenges we face. By engaging stakeholders, exploring new revenue streams, and continuing to focus on achieving operational efficiencies, we are positioned to address our long-term financial challenges while still providing essential city services to our residents. Together, we will continue to build a vibrant and resilient community now and into the future.

The development and delivery of the proposed budget to the Council is the culmination of months of work from staff throughout the organization, and it is a true team effort. I would like to thank the City Council for articulating a vision and setting priorities that helped us develop the budget. I would also like to thank my executive team, along with their respective staff members, for their efforts in supporting the budget development process. My thanks also go to the members of the Finance Department, Finance Director Karen Huang, Deputy Director of Finance Abby Veeser, Budget Manager Renee Halcon, Senior Accounting Assistant Samantha Wong and Accounting Manager Ha Tran, who drove the process to develop the budget and prepare this budget document. Finally, I commend Public Works Director Matt Fabry, Deputy Director of Public Works Deryk Daquigan, Deputy Director of Public Works Katherine Sheehan, and Business Manager Jamie Perez for their overall management of the capital budget and long-term capital plan.

Respectfully submitted,

Alex Khojikian
City Manager

City Overview
City Council Vision
San Mateo
• Is a pre-eminent City between San Francisco and San Jose. • Has strong, attractive commercial areas and viable, wholesome neighborhoods. • Has a solid, healthy economic and financial base that cultivates innovation and technology. • Includes its diverse population in all facets of community life and is a nurturing place for youth. • Is safe and has well maintained infrastructure.
• Is the cultural center of the County.
• Is increasingly sustainable and a leader in reducing carbon emissions.

To achieve this vision, the San Mateo City Government will:
• Facilitate the effective functioning and development of the community and its citizens. • Ensure all elements of the community are well represented in the government process. • Serve as both a facilitator and a provider in seeing that community needs and desires are addressed through the most appropriate, effective delivery system whether it is public, non-public, or public/private partnership. • Serve as a consensus builder in the community and articulate collective direction. • Maintain a responsive, capable staff dedicated to serving the community in a non-bureaucratic manner and provide high value for the expenditure of public funds.
• Look to the long-term future of the community and seek constant improvement, including increasing sustainability and reducing the community's carbon footprint.
• Be a full partner in the sharing of common services and regional affairs that affect the City.

City Council Strategic Direction
The strategic directions express key targets that must be accomplished to achieve its vision. These strategic directions are:

Safe, Clean, and Attractive Neighborhoods
• Ensure higher levels of public safety, especially in neighborhoods under the most stress. • Enhance the quality of residential neighborhoods by encouraging improved appearance and more community involvement.

Successful Businesses and a Solid Tax Base
• Increase the economic vitality of the City with strengthened ties between business and the general community.

A Community Where Residents Can Flourish and Y outh are Nurtured • Continue to encourage involvement of youth in our community by improving programs for children, pre-teens, and teens.
• Continue to support efforts to improve access to and affordability of early childhood care and education.

Orderly Planning, Development, and Functioning of the Community • Support future growth and redevelopment in Downtown, other commercial areas, and along the transportation corridor to ensure a well-planned environment and promote a high quality of life. • Continue efforts to increase entry-level housing, strive for a balance between jobs and housing, and provide incentives for City employees to live in San Mateo.
• Continue to invest in the long-term infrastructure needs of the City and create an identity for San Mateo that generates civic pride and responsibility.

An Open, Participative, and Effective City Government
• Continue to provide cost-effective and quality services that are accessible to all segments of the San Mateo community.
• Maintain City finances where expenses do not exceed ongoing revenues. • Expand community outreach and participation opportunities for all who live and/or work in San Mateo. • Continue to cooperate with regional partners, schools, and other agencies to improve infrastructure and services, strengthen partnerships, avoid duplication, and decrease costs. • Develop and maintain an organization that values employee participation and a sense of ownership.

City Council Priorities
Items to be Completed within the Fiscal Y ear:
• Develop and implement an ordinance to prohibit the
use of gas leaf blowers within the City of San Mateo.
• Y outh Service Officers at Schools – funding program
• Develop City Council Code of conduct with
measurable consequences akin to the San Mateo
County Board of Supervisors language with
enforcement
• Develop policy on regulating mobile vending/food
trucks
• Establish Senior Hubs at MLK and Beresford Senior
Centers
• Deliver the Clean Water Program
• Explore the implementation of a Customer Response
Management or 311 system.
• Implement Phase 1 of the Central Park Master Plan.
• Address structural issues at the Marina Library.
• Explore piloting a City Grant Fund.
• Establish policies to decarbonize existing buildings
and infrastructure and eliminate methane gas use by
2030
• Create a comprehensive, ongoing Citywide
Community Outreach and Engagement Program
• Create a Capital Infrastructure Plan or process for
reinvesting in infrastructure to allow the City to
evaluate City facilities and assets when upgrades are
needed
• Explore a resolution affirming the City's commitment
to integrate new technologies, such as artificial
intelligence (AI), without displacing work force
• Conduct an Annual Transportation Review of progress
on all ongoing plans, including project updates and
key metrics such as City mode share, collision and
safety data
• Complete Speed Surveys
• Explore limiting overnight RV Parking in commercial
corridors
• Explore how the City of San Mateo could partner with
Sustainable San Mateo and Peninsula Clean Energy in
"Charge Forward San Mateo”
Items to be Completed within 2 to 5 Y ears:
• Consider the adoption of wage theft protections
• Initiate a Community Budget Process for anticipated
revenue from Measure CC.
• Enhance city-wide disaster response and emergency
preparedness.
• Implement the adopted General Plan.
• Implement Housing Element Policies.
• Reconstruct all failed streets identified in the Smooth Streets program in San Mateo by 2026.
• Replace all remaining high voltage circuits to improve safety and reliability of the street light system.
• Implement a robust, year-round Downtown Activation
Program as part of our core City services.
• Explore how the City of San Mateo could partner with
the San Mateo Union High School District, San Mateo-
Foster City School District and other public, private
and nonprofit organizations to support "Empower San
Mateo"
• Prioritize planning, design, construction and
maintenance of rapid safety improvement projects
citywide and ensure there is a reliable City fund for
long term success.
• Improve and strengthen democratic systems and
decrease polarization.
• Work with schools, community colleges, businesses,
and other organizations to expand youth and
senior workforce development & civic leadership
opportunities.
• Commission a citywide feasibility study for groups of San Mateo businesses interested in forming business
improvement districts (BIDs)
• Explore and evaluate allowing a retail cannabis
storefront in downtown
• Develop a Climate Adaptation Plan to establish a
comprehensive strategy for resiliency and adaptation
against sea level rise and flooding to ensure we are
well poised for funding opportunities and include
Foster City and Burlingame in planning efforts.
• Minimize impacts to residents from train horn noise at City at-grade crossings.

Items to be Completed in 5 or More Y ears:
• Expedite efforts to improve the stormwater collection, drainage, and storage system, including dredging the
Marina lagoon.
• Implement a Green Fleet by 2035.
• Expedite efforts to provide high quality effluent from the wastewater treatment plant upgrades to support
the future production of potable water.
• Study resource feasibility for the downtown
grade separations and long-term train corridor
improvements.
• Improve traffic flow on 19th Ave and Fashion Island
Boulevard from Grant to Mariners Island Boulevard.
• Complete all High and Medium-High priority projects
in the 2020 Bicycle Master Plan and the Pedestrian
Master Plan with the goal of prioritizing quick-build
projects where feasible.
• Expedite efforts to improve and build climate
resiliency into the City’s stormwater collection,
conveyance, flood control, and levee systems,
including dredging the Marina lagoon.

City Council Priorities
Mission
Serving the San Mateo community
through collaboration, innovation,
and professionalism
Values
Respect, Creativity, Integrity,
Transparency, Inclusivity
Organizational Principles
Engaged and accountable workforce
Working as one organization
Maintaining long-term perspective
Seeking constant improvement
Leading through informed risk-taking

CITY OF SAN MATEO

ORGANIZATIONAL VISION
City Profile
Location
The City of San Mateo is located in San Mateo County, on the Peninsula in the San Francisco Bay Area. It is bordered by Burlingame to the north, Foster City to the east, Belmont to the south, and Hillsborough to the west. The City is conveniently situated 19 miles south of San Francisco and 30 miles north of San Jose. It covers an area of 15.4 square miles, including 3.87 square miles of tidelands from the San Francisco Bay to the east and a range of coastal mountains to the west.

The City
The City was incorporated in 1894 and was originally
chartered in 1922. The current charter was adopted in
1971 and revised in 2002. San Mateo has a Council-
Manager form of government. The City shifted from Council members being elected at-large to districts beginning
in the November 2022 election, where three of the five
districts were open. The remaining two district positions were open and elected in November 2024. The Council
selects a Mayor from among its members each December
for a one-year term. The Mayor and City Council serve
as the legislative and policy making body of the City. The City Manager, appointed by the Council, serves as chief executive officer and is responsible for the day-to-day administration of City affairs. The City Council also appoints a City Attorney. There are twelve Advisory Boards and
Commissions.

Services
The City provides a full range of municipal services.

These include police, planning, building, sewer, street maintenance, and general administrative services. Fire
service is provided by the San Mateo Consolidated Fire
Department. Water is provided to the residents of the
City of San Mateo by California Water Services, a private company. The City operates and maintains facilities for wastewater treatment. In addition, the City offers thirty-five parks, six recreation centers, three libraries, and an 18-hole golf course. The San Mateo Performing Arts Center hosts productions by numerous local, regional, and international artistic enterprises, including the Peninsula Ballet Theatre, the Peninsula Civic Light Opera, and the Peninsula
Symphony. San Mateo has abundant shopping areas,
including two major regional shopping centers, Hillsdale Shopping Mall, and Bridgepointe.

Population and Demographic
Characteristic
Based on the California Department of Finance, the City’s population as of 2024 was just over 103,000, which
represents about 15.20% of the countywide population.

Also based on the most recent U.S. Census data, per capita personal income for San Mateo residents was $78,990,
which is slightly above the amount for San Mateo County as a whole ($77,741) and well above the value for the State of California ($45,591). According to the Employment
Development Department, the City's unemployment rate is

3.3%, which is the same as the County's unemployment rate at 3.3%.

City Profile
Local Economy
San Mateo is centrally located in the San Francisco Bay Area and has direct access to interstate highways, rail lines, a trans-bay bridge, public transit routes, and the San Francisco International Airport. San Mateo serves
as a center of commercial and residential activity. The Transit Center is a multi-modal transportation hub allowing people to board Caltrain to destinations as far north as San Francisco and as far south as Gilroy.

The community is comprised of residences of all types
and at a range of costs, major retail and commercial
establishments, a downtown transit center, a community
college, and two major medical centers. It is also the
home of the San Mateo County Events Center. The robust
economy has renewed interest in the downtown area,
which continues to attract quality small- to medium-sized businesses. The main City Library, completed in 2006,
is the cultural center of the City and benefits many local and regional patrons. The Police Station, completed in
2009, serves as the headquarters to protect and serve the residents in the City.

City Statistical Data
Miscellaneous statistical data for the City of San Mateo is as follows:

Date of Incorporation
1894
Form of Government
Council-Manager
Area in Square Miles

15.4 Capital Assets
6 Community Centers
3 Libraries
36 Parks
1 Golf Course
1 Police Station
6 Fire Stations
204 miles of streets / 7,500 street lights
260 miles of sanitary sewers
148 miles of storm drains
Median Age of Residents

39.4 Public School Enrollment
19,323
Top Employers
County of San Mateo Medical Center
San Mateo-Foster City Unified School District
Sony Interactive Entertainment
San Mateo Union High School District
San Mateo Community College District
Franklin Templeton Investor

City Organizational Chart
POLICE

OPERATING DEPARTMENTS

CITY MANAGER CITY CLERK

CITY ATTORNEY

CITY COUNCIL

COMMUNITY OF SAN MATEO

BOARDS & COMMISSIONS
Civic Arts Committee
Community Relations Commission
Investment Advisory Committee
Library Board
Measure S Oversight Committee
Mosquito and Vector Control District
Parks & Recreation Commission
Personnel Board
Planning Commission
Senior Advisory Commission
Sustainability and Infrastructure Commission
Y outh Advisory Council
Mayor
Deputy Mayor
Council Member
Council Member
Council Member
City Manager
City Attorney
City Council
Rob Newsom Jr.

Adam Loraine
Nicole Fernandez
Danielle Cwirko-Godycki
Lisa Diaz Nash
Alex Khojikian
Prasanna Rasiah
Assistant City Manager
City Clerk
City Librarian
Community Development Director
Finance Director
Human Resources Director
Information Technology Director
Parks and Recreation Director
Police Chief
Public Works Director
Department Heads
Christina Horrisberger
Martin McTaggart
Rukshana Singh
Zach Dahl
Karen Huang
Aracelia Esparza
Pete Owen
Joanne Magrini
Ed Barberini
Matt Fabry
PUBLIC
WORKS

COMMUNITY

DEVELOPMENT LIBRARY PARKS &

RECREATIONFINANCE INFORMATION

TECHNOLOGY
HUMAN

RESOURCES
Basis of Budgeting
Fund Accounting Budget System
The City of San Mateo’s budget is organized on the
basis of the fund accounting system, in which each fund is considered a separate budgeting entity. Government
resources are allocated to and expenses accounted for
in individual funds based upon the purposes for which
they are to be spent and the means by which spending
activities are controlled. All operating funds’ budgets lapse at the end of the adoption cycle. The capital projects fund appropriations are valid for the life of the projects. The City also maintains an encumbrance accounting system as one
technique of accomplishing budgetary control. Encumbered amounts in the operating budget lapse one year after
the end of the fiscal year. There is no formal provision in departmental budgets for depreciation and compensated
absences (i.e. accrued vacation and sick leave time), but they are budgeted as internal services fund charges. The following fund types are used by the City:

Governmental Fund Types
All governmental fund budgets are accounted for using
a current financial resources measurement focus and a
modified accrual basis.

General Fund
This fund accounts for all financial resources not required to be accounted for in other funds, and is the general
operating fund of the City. The General Fund has four sub- funds: the Measure S Tracking sub-fund, the Downtown
Services sub-fund, the Recreation Services sub-fund, and the Golf sub-fund.

Special Revenue Funds
These funds account for the City’s revenues from sources which, by law or administrative action, are designated to finance particular functions or activities other than capital projects or expendable trusts.

Debt Service Funds
These funds account for the accumulation of financial
resources for and the payment of principal, interest, and related costs on general long-term debt.

Capital Programs Funds
These funds account for financial resources to be used
for the acquisition or construction of major capital facilities (other than those financed by Proprietary Fund Types).

Proprietary Fund Types
All proprietary fund budgets are accounted for on a flow of economic resources measurement focus and a full accrual basis.

Enterprise Funds
This fund accounts for operations of the City that are
financed and operated in a manner similar to private
business enterprises.

Internal Service Funds
These funds account for the financing of services provided by one department to other departments on a cost-
reimbursement basis.

Budgetary Controls
Effective July 1, 1986, the City implemented a two-year budget cycle. The two-year budget process requires that each department submit two one-year expenditure plans
and revenue estimates to the City Council for approval.

Only the first of the two years’ budget will be adopted. In each alternate year, City staff makes recommendations to the City Council for amending the second-year plan. In any budget cycle, to remain adaptable to changing economic
and/or operational conditions, the City may choose to
develop one-year instead of two-year budget plans.

The Department Heads are responsible for containing
expenditures within their budgeted appropriations as
approved by the City Council. Subsequent to the adoption of the budget, all additional changes to the budget require City Council approval.

Activities of the General Fund, Special Revenue Funds,
Debt Service Funds, Proprietary, and Capital Funds are
included in the annual budget. The level of budgetary
control is the department within each fund.

Budget Preparation Timeline
July Through September
• Departments report out on performance and workload
indicators from the previous fiscal year.
• Encumbrances and capital project carryovers are
incorporated into department budgets and long-term
financial plans of each applicable fund.
• Preliminary financial results from the previous fiscal year are reported to Council.
• Initial scoping meetings are held between Department
Heads and the City Manager to discuss any significant
changes to the departmental operating or capital
budget that will be proposed for the upcoming cycle.

October Through December
• Schedule for the development of the following
fiscal year’s budget is established and distributed to
departments.
• Final financial results from the previous fiscal year, in the form of the Comprehensive Annual Financial
Report, are presented to Council.
• Development of internal service charges and cost
allocations begins.
• Budget direction and guidance are provided to
departments.

Like any large, complex organization, the process to develop and produce the budget is continuous throughout the fiscal year, which runs from July 1 to June 30. The major activities and milestones are as follows:

January Through March
• City Council holds its annual goal setting session to identify budget priorities.
• Annual mid-year financial report is delivered to
Council.
• Departmental operating and/or capital budget
requests are received and evaluated by Finance and
the City Manager’s Office.
• Revenue projections for major General Fund tax
revenues are finalized.

April Through June
• City Council approves Master Fee Schedule during a
public hearing.
• Long-term financial plans for applicable funds are
finalized.
• Study session is held with Council to introduce
major components of the budget and receive final
feedback and guidance prior to the delivery of the
recommended budget.
• City Council holds two public hearings on the
recommended budget.
• Final budget adopted by the City Council.

Budget Preparation Process
2025-26 Budget Development Process
The City is on a two-year budget cycle, and it alternates its budget preparation focus between the operating budget and the capital budget. For the development of the 2025-26 budget, the focus was on the capital budget. The final service level set for 2024-25 was maintained for the 2025-26 budget. As such, updates to the 2025-26 operating budget primarily focused on adjusting salary and benefits amounts to accommodate changes in costs, as well as updating General Fund revenues to reflect revised projections.

The development of the 2025-26 budget began in the second half of calendar year 2024, as the Capital Improvement Program (CIP) Committee convened to scope out the plan for collecting, evaluating, and funding the projects included in the 5-year CIP. This committee consists of the City Manager, Assistant City Manager, Finance Director, Public Works Director, and Parks and Recreation Director. The collection phase of the process consisted of evaluating the status of the currently budgeted projects in the 5-year CIP, inventorying all existing unfunded projects, and identifying any new capital requests. Once that was completed, the departments, primarily Public Works and Parks and Recreation, updated cost estimates for all existing projects, funded and unfunded, and established initial estimates for new capital projects. The CIP Committee then developed an initial list of priority projects for funding, which predominantly consisted of existing projects that had been previously slated for funding. In parallel, staff from Finance, Public Works, and Parks and Recreation updated revenue estimated from the various project funding sources to determine the overall capacity to fund priority projects. The CIP Committee utilized this information to then make final funding decisions on projects for the 2025-30 5-year CIP. This process concluded in mid-March, and once the final determinations were made on funded and unfunded projects, staff began the process of updating project charters and project financials for inclusion into the budget document.

In mid-April, staff presented City Council with a preview of the recommended budget which primarily focused on General Fund revenues. Staff incorporated Council feedback and finalized numbers for the 2025-26 budget, which included five- and ten-year financial plans for each of the applicable funds. Attention then turned towards the design and creation of the budget document. The proposed 2025-26 budget document was delivered at the first City Council meeting in June and public hearings were held adopted the final budget adopted before June 30.

GFOA Financial Reporting Award
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of San Mateo
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO

PRESENTED TO
City of San Mateo
California
For the Fiscal Year Beginning
July 01, 2024
Executive Director

GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished
Budget Presentation
Award
GFOA Budget Award
CSMFO Budget Award
California Society of Municipal
Finance Officers
Certificate of Award
Operating Budget Excellence Award
Fiscal Year 2024-2025
Presented to the
City of San Mateo
For meeting the criteria established to achieve a CSMFO Award in Budgeting.

February 7, 2025
Ernie Reyna James Russell-Field, Chair
2024 CSMFO President Recognition Committee
Dedicated to Excellence in Municipal Financial Reporting

Budget Overview
Citywide Sources of Funding

BY CATEGORY
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
Property Tax $ 85,340,000 $ 87,495,000 Sales Tax 34,201,512 32,312,001 Property Transfer Tax 8,000,000 8,600,000 Transient Occupancy Tax 4,700,000 4,746,000 Business License Tax 7,750,000 8,000,000 Franchises 3,350,000 3,430,000 Bond and Loan Proceeds 975,000 549,473 Building and Other Permits 12,439,000 7,665,450 Capital Contribution 6,282,972 4,114,550 Charges for Services 104,472,338 108,287,708 Department In Lieu Payments 6,720,000 6,870,896 Fines, Forfeitures, and Penalties 2,113,000 2,113,000 Impact Fees 2,728,197 8,679,708 Intergovernmental 23,503,181 15,300,281 Investment Income 8,326,950 11,392,446 Special Assessments 4,103,000 4,062,000 Other 1,972,194 3,091,312 Total Citywide Sources of Funding $ 316,977,344 $ 316,709,825 *Fees and Charges include charges for services; fines, forfeitures, and penalties; franchises; impact fees; special assessments. **Tax Revenues include property tax, sales tax, property transfer tax, transient occupancy tax, business license tax. 2% 1%
2%
40%
5%4%
45%
1%

CITYWIDE SOURCES OF FUNDING
2025-26 ($316.7 MILLION)
Building and Other Permits
Capital Contribution
Department In Lieu Payments
Fees and Charges
Intergovernmental
Investment Income
Tax Revenues
Other
City Sources of Funding
FUND
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
General Funds
General $ 148,964,931 $ 150,762,761 Measure S Tracking 7,300,000 7,100,000 Downtown Services 4,251,000 4,251,000 Recreation Services 4,233,057 4,801,000 Golf 3,473,500 3,343,500 General Funds Total $ 168,222,488 $ 170,258,261 Special Revenue Funds
Police Grants and Safety $ 1,747,137 $ 1,202,000 Solid Waste 4,004,609 3,738,000 HOME 15,000 15,000 Community Development Block Grant 740,000 740,000 Advance Planning 2,044,760 2,050,000 Construction Services 9,241,100 9,467,550 Gas Tax 3,051,959 3,089,188 City Housing 66,000 66,000 Low and Moderate Income Housing Asset 289,190 291,446 Parks and Recreation Revenue 237,000 4,692,000 Traffic Impact Fee 2,428,197 1,349,708 Commercial Linkage Fee 5,000,000 2,550,000 Road Maintenance and Rehabilitation Account (RMRA) 2,884,904 3,063,176 Permanent Local Housing Allocation 300,000 224,653 Landfill 680,000 680,000 Special Revenue Funds Total $ 32,729,856 $ 33,218,721 Debt Service Funds
General Obligation Bonds $ 1,460,000 $ 1,590,000 2% Hotel Tax 700,000 748,000 Debt Service Funds Total $ 2,160,000 $ 2,338,000 Capital Programs Funds
Capital Projects $ 17,201,533 $ 10,958,293 Capital Programs Funds Total $ 17,201,533 $ 10,958,293 Enterprise Funds
Storm $ 4,050,000 $ 4,216,000 Sewer 91,895,466 95,720,550 Enterprise Funds Total $ 95,945,466 $ 99,936,550 Internal Service Funds*
Vehicle and Equipment Replacement $ 2,161,585 $ 2,208,896 Fleet and Building Maintenance 5,778,693 6,140,490 Benefits 47,921,301 50,548,532 Dental 756,000 779,000 Workers’ Compensation 4,699,000 2,900,000 Comprehensive Liability 3,700,000 5,200,000 Internal Service Funds Total $ 65,016,579 $ 67,776,919 Total City Operating Budget $ 316,977,344 $ 317,479,825 *For Internal Service Funds, only investment income in included in the Total Citywide Sources of Funding.

City Operating Budget
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
City Attorney $ 1,671,143 $ 1,758,600 City Clerk 1,153,719 1,097,892 City Council 456,520 473,805 City Manager 3,403,190 3,709,851 Community Development 17,046,225 17,835,171 Finance 4,503,342 4,557,625 Human Resources 2,593,709 2,905,669 Information Technology 5,198,308 5,379,838 Library 9,811,801 10,024,450 Parks and Recreation 22,592,600 23,519,690 Police 65,267,789 67,895,027 Public Works 52,530,283 53,347,931 San Mateo Consolidated Fire Department Contribution and Fire Legacy Costs 36,095,951 38,761,533 Non-Departmental 33,520,867 40,687,834 Total City Operating Budget $ 255,845,447 $ 271,954,918 Department totals shown in millions.

DEPARTMENT
Totals do not include internal services.
* Citywide Administration includes these departments: City Attorney, City Clerk, City Council, City Manager, Finance, Human Resources and IT.

San Mateo Consolidated Fire Department Contribution
and Fire Legacy Costs
Citywide Administration*
Community Development
Library
Parks and Recreation
Police
Public Works
Non-Departmental $40.7
$38.8
$53.3
$67.9
$23.5
$10.0
$17.8
$19.9
0% 5% 10% 15% 20% 25% 30%

CITYWIDE OPERATIONS BY DEPARTMENT
2025-26 ($272.0 MILLION)
City Operating Budget
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
Salaries and Wages $ 77,305,816 $ 76,653,678 Benefits 47,481,649 49,278,917 Operating 94,962,031 107,260,790 San Mateo Consolidated Fire Department Contribution and Fire Legacy Costs 36,095,951 38,761,533 Total City Operating Budget 255,845,447$ 271,954,918$

CATEGORY
Totals do not include internal services.

Fire operations transferred to San Mateo Consolidated Fire Department in January 2019. 28%
18%
39%
14%

CITYWIDE OPERATIONS BY CATEGORY
2025-26 ($272.0 MILLION)
Salaries and Wages
Benefits
Operating
San Mateo Consolidated
Fire Department
Contribution and Fire
Legacy Costs
City Operating Budget
FUND
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
General Funds
General $ 148,694,170 $ 154,357,501 Measure S Tracking 2,334,601 2,161,116 Measure CC Tracking - 200,000 Housing Set-Aside 583,499 86,237 Downtown Services 4,538,937 4,496,506 Recreation Services 9,738,915 10,241,361 Golf 3,464,503 3,747,764 General Funds Total $ 169,354,626 $ 175,290,485 Special Revenue Funds
Police Grants and Safety $ 1,732,239 $ 1,610,043 Solid Waste 3,711,768 4,858,292 HOME 10,000 10,000 Community Development Block Grant 504,175 488,356 Advance Planning 1,901,347 2,357,167 Construction Services 13,996,787 14,507,442 City Housing 228,500 253,500 Low and Moderate Income Housing Asset 146,311 368,428 Parks and Recreation Revenue 17,726 18,258 Commercial Linkage Fee 5,338 40,498 Permanent Local Housing Allocation 309,303 224,653 Landfill 107,814 101,193 Special Revenue Funds Total $ 22,671,308 $ 24,837,830 Debt Service Funds
Street and Flood Control Projects Bond $ 2,693,045 $ 2,697,954 General Obligation Bonds 2,124,106 2,135,229 2% Hotel Tax 1,079,144 1,067,768 Debt Service Funds Total $ 5,896,295 $ 5,900,951 Enterprise Funds
Storm $ - $ 1,324,410 Sewer 57,923,218 64,601,242 Enterprise Funds Total $ 57,923,218 $ 65,925,652 Total City Operating Budget $ 255,845,447 $ 271,954,918 Internal Service Funds*
Vehicle and Equipment Replacement $ 10,600,790 $ 11,819,511 Fleet and Building Maintenance 6,183,665 6,245,353 Benefits 47,672,604 50,287,096 Dental 823,000 855,000 Workers’ Compensation 4,412,299 4,470,554 Comprehensive Liability 4,037,792 5,184,430 Internal Service Funds Total $ 73,730,151 $ 78,861,945 * Informational figures only. Not included in totals since they are already included in departmental budgets.

All Funds Budget Summary

BEGINNING FUND

BALANCE
General Funds
General 1
85,740,902$ 150,562,761$ Measure S Tracking 9,898,269 7,100,000 Measure CC Fund 6,907,568 - Housing Set Aside Fund 6,387,084 - Downtown Services 1,524,678 4,251,000 Recreation Services - 4,801,000 Golf 1,033,664 3,343,500 General Funds Total 111,492,164$ 170,058,261$ Special Revenue Funds
Police Grants 556,786$ 1,202,000$ Solid Waste 14,597,381 3,738,000 HOME 497,258 15,000 Community Development Block Grant 548,849 740,000 Advance Planning 6,071,470 2,050,000 Construction Services 26,518,777 9,467,550 Gas Tax 2,884,192 3,089,188 City Housing 1,443,759 66,000 Low and Moderate Income Housing Asset 5,350,823 291,446 Parks and Recreation Revenue 3,779,506 4,692,000 Traffic Impact Fee (2,652,760) 1,349,708 Commercial Linkage Fee (550,244) 2,550,000 Road Maintenance and Rehabilitation Account 1,805,202 3,063,176 Permanent Local Housing Allocation 10,024 224,653 Landfill Fund 4,496,133 680,000 Special Revenue Funds Total 65,357,154$ 33,218,721$ Debt Service Funds
Street and Flood Control Projects Bond 30,264$ -$ General Obligation Bonds 7,159,656 1,590,000 2% Hotel Tax 364,067 748,000 Debt Service Funds Total 7,553,987$ 2,338,000$ Capital Improvement Projects Funds
Capital Improvement Projects 7,737,223$ 10,958,293$ Capital Improvement Projects Funds Total 7,737,223$ 10,958,293$ Enterprise Fund
Storm 1,737,115$ 4,216,000$ Sewer 294,962,860 95,720,550 Enterprise Fund Total 296,699,975$ 99,936,550$ Internal Service Funds 2
Vehicle and Equipment Replacement 18,494,800$ 2,208,896$ Fleet and Building Maintenance 649,002 6,140,490 Benefits (297,201) 43,545,073
Dental 999,146 779,000 Workers' Compensation 6,538,811 2,900,000 Comprehensive Liability (973,862) 5,200,000
Internal Service Funds Total 25,410,695$ 60,773,459$ Total City $ 488,840,503 $ 317,279,825 Note: Governmental Funds are presented using a modified accrual basis and Proprietary Funds are presented using a full accrual basis. 1 Vacancy savings shown in the General Fund Long-Term Financial Plan are incorporated in the amounts under the Operating column. 2 For Internal Service Funds, only transfers and investment income are included in totals.

PROPOSED 2025-26 REVENUES
All Funds Budget Summary

INTERFUND INTERFUND ENDING FUND
TRANSFERS IN TRANSFERS OUT Operating Transfer to CIP BALANCE 2,616,532$ 7,365,347$ 154,357,501$ 5,050,000$ 72,147,347$ - 3,029,032 2,161,116 3,000,000 8,808,121 - - 200,000 875,000 5,832,568 1,100,000 - 86,237 - 7,400,847 - - 4,496,506 - 1,279,172 5,505,347 - 10,241,361 - 64,986 - - 3,747,764 - 629,400 9,221,879$ 10,394,379$ 175,290,485$ 8,925,000$ 96,162,440$ -$ -$ 1,610,043$ -$ 148,743$ - - 4,858,292 - 13,477,089 - - 10,000 - 502,258 - - 487,255 617,000 184,594 - - 2,357,167 - 5,764,304 - 530,000 14,507,442 390,000 20,558,884 - 1,747,500 - 1,253,000 2,972,880 - - 253,500 - 1,256,259 - - 368,428 - 5,273,841 - - 18,258 2,250,000 6,203,249 - - - 850,000 (2,153,052) - - 40,498 - 1,959,257 - - - 2,700,000 2,168,378 - - 308,624 - (73,947) - - 101,193 1,120,000 3,954,940 -$ 2,277,500$ 24,920,700$ 9,180,000$ 62,197,675$ 2,690,000$ -$ 2,697,954$ -$ 22,310$ - - 2,135,229 - 6,614,427 350,000 - 997,768 - 464,299 3,040,000$ -$ 5,830,951$ -$ 7,101,036$ -$ -$ -$ 9,941,293$ 8,754,223$ -$ -$ -$ 9,941,293$ 8,754,223$ -$ -$ 1,324,410$ 3,400,000$ 1,228,705$ - - 64,462,543 29,639,000 296,581,867 -$ -$ 65,786,952$ 33,039,000$ 297,810,573$ 410,000$ -$ 11,819,511$ 800,000$ 8,494,185$ - - 6,245,353 - 544,139 - - 43,283,637 - (35,765) - - 855,000 - 923,146 - - 4,470,554 - 4,968,257 - - 5,184,430 - (958,292) 410,000$ -$ 71,858,486$ 800,000$ 13,935,669$ $ 12,671,879 $ 12,671,879 $ 271,829,088 $ 61,885,293 $ 472,025,947

EXPENDITURES
Capital Improvement Projects (CIP) Budget

CIP BUDGET
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
Total City Transfers 66,590,943 $ 64,615,879$ Less Capital Improvement Projects Transfers 46,054,000 51,944,000 Total Operating Transfers 20,536,943 $ 12,671,879$ Total Capital Improvement Projects Transfers 46,054,000$ 51,944,000$ Add Capital Improvement Projects Revenue & Fund Balance 19,194,363 9,596,857 Total Capital Improvement Projects Budget 65,248,363$ 61,540,857$ 10%5%43%1%24%17%CAPITAL IMPROVEMENT PROJECTS BUDGET2025-26 ($61.5 MILLION)General FundMeasure SSewer Fund (Clean WaterProgram)Stormwater FeeTaxes, Fees, and ChargesOther Sources Schedule of Interfund Transfers
In Out
General Fund
From Measure S Tracking Fund 339,032$ -$ From Construction Services Fund 530,000 - From Gas Tax Fund 1,747,500 -
To Housing Set Aside Reserve Fund - 1,100,000 To 2% Hotel Tax Fund - 350,000 To Downtown Services Fund - - To Recreation Services Fund - 5,505,347 To Capital Projects Fund - 5,050,000 To Vehicle and Equipment Replacement Fund - 410,000 Total 2,616,532$ 12,415,347$
Measure S Tracking Fund
To General Fund -$ 339,032$ To Street and Flood Control Projects Bond Fund - 2,690,000 To Capital Projects Fund - 3,000,000 Total -$ 6,029,032$
Measure CC Fund
To Capital Projects Fund - 875,000 Total -$ 875,000$
Housing Set Aside Fund
From General Fund 1,100,000$ -$
Total 1,100,000$ -$
Downtown Services Fund
From General Fund -$ -$
Total -$ -$
Recreation Services Fund
From General Fund 5,505,347$ -$
Total 5,505,347$ -$
Community Development Block Grant Fund
To Capital Projects Fund -$ 617,000$ Total -$ 617,000$
Construction Services Fund
To General Fund -$ 530,000$ To Capital Projects Fund - 390,000 Total -$ 920,000$
Gas Tax Fund
To General Fund -$ 1,747,500$ To Capital Projects Fund - 1,253,000 Total -$ 3,000,500$
Parks and Recreation Revenue Fund
To Capital Projects Fund -$ 2,250,000$ Total -$ 2,250,000$
Traffic Impact Fee Fund
To Capital Projects Fund -$ 850,000$ Total -$ 850,000$
2025-26 PROPOSED BUDGET
TransferFUND
Schedule of Interfund Transfers
In Out
Road Maintenance and Rehabilitation Account Fund
To Capital Projects Fund -$ 2,700,000$ Total -$ 2,700,000$
Landfill Fund
To Capital Projects Fund -$ 1,120,000$ Total -$ 1,120,000$
Street and Flood Control Project Fund
From Measure S Tracking Fund 2,690,000$ -$ Total 2,690,000$ -$
2% Hotel Tax Fund
From General Fund 350,000$ -$
Total 350,000$ -$
Storm Fund
To Capital Projects Fund -$ 3,400,000$ Total -$ 3,400,000$
Sewer Fund
To Capital Projects Fund -$ 29,639,000$ Total -$ 29,639,000$
Vehicle and Equipment Replacement Fund
From General Fund 410,000$ -$
To Capital Projects Fund -$ 800,000$ Total 410,000$ 800,000$
Workers' Compensation Fund
To Comprehensive Liability Fund -$ -$ Total -$ -$
Comprehensive Liability Fund
From Workers Comp Fund -$ -$ Total -$ -$
Capital Projects Fund
From General Fund 5,050,000$ -$
From Measure S Tracking Fund 3,000,000 - From Measure CC Fund 875,000 -
From CDBG 617,000 -
From Construction Services Fund 390,000 - From Gas Tax Fund 1,253,000 -
From Parks and Recreation Revenue Fund 2,250,000 - From Traffic Impact Fee Fund 850,000 - From Road Maintenance and Rehabilitation Account Fund 2,700,000 - From Landfill Fund 1,120,000 -
From Storm Fund 3,400,000 -
From Sewer Fund 29,639,000 -
From Vehicle and Equipment Replacement Fund 800,000 - Total 51,944,000$ -$
Total City Transfers $ 64,615,879 $ 64,615,879 2025-26 PROPOSED BUDGET
TransferFUND
Pension Long-Term Forecast
2024-25 2025-26 2026-27 2027-28
(In millions) ESTIMATES PROPOSED FORECAST FORECAST
Pension Contribution 1 - By Plan
Miscellaneous 11.8$ 11.7$ 12.4$ 13.0$ Safety 18.4$ 19.7$ 20.7$ 21.5$ Total 30.2$ 31.4$ 33.1$ 34.4$ Pension Contribution 1 - By Type
Normal Costs 7.4$ 7.5$ 7.6$ 7.6$ Unfunded Actuarial Liability (UAL) 22.8$ 23.9$ 25.5$ 26.8$ Total 30.2$ 31.4$ 33.1$ 34.4$ Actuarial Unfunded Liabilities
Miscellaneous 100.8$ 98.9$ 97.0$ 94.3$ Safety 199.1$ 196.8$ 193.0$ 188.0$ Total 299.9$ 295.7$ 290.1$ 282.3$ Funded Percentage
Miscellaneous 71% 72% 73% 75%
Safety 61% 62% 63% 65%
Total 65% 66% 67% 69%
Total Pension Contribution as % of Covered Payroll 3
Miscellaneous 30% 29% 30% 30%
Safety 102% 107% 109% 110%
Total 53% 53% 55% 55%
Pension Contribution as % of General Fund Expenditures 2 Miscellaneous 7% 7% 7% 7%
Safety 11% 12% 12% 12%
Total 18% 19% 19% 19%
1 This is the City's pension cost before accounting for employees' cost-sharing. 2 General Fund Expenditures only. Transfers out is not included. 3 Percentage increases for Safety plan are primarily due to the City's fire operations transferred to a new JPA agency in January 2019, resulting in less covered payroll but with the unfunded liabilities remaining as the City's responsibility.

Pension Long-Term Forecast
2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35

FORECAST FORECAST FORECAST FORECAST FORECAST FORECAST FORECAST

14.1$ 14.4$ 14.7$ 14.4$ 14.3$ 13.7$ 13.5$

23.0$ 23.5$ 23.9$ 23.4$ 23.2$ 22.3$ 21.9$

37.1$ 37.9$ 38.5$ 37.7$ 37.5$ 36.0$ 35.4$

7.7$ 7.7$ 7.8$ 7.8$ 7.8$ 7.9$ 7.9$

29.4$ 30.2$ 30.8$ 29.9$ 29.7$ 28.2$ 27.6$

37.1$ 37.9$ 38.5$ 37.7$ 37.5$ 36.0$ 35.4$

90.9$ 86.1$ 80.7$ 74.7$ 68.6$ 62.3$ 56.2$ 181.7$ 173.4$ 163.9$ 153.4$ 142.7$ 131.4$ 120.2$ 272.6$ 259.5$ 244.6$ 228.1$ 211.3$ 193.6$ 176.4$ 76% 78% 80% 82% 84% 86% 87%
66% 68% 70% 73% 75% 77% 79%
71% 72% 74% 77% 79% 81% 83%
32% 32% 32% 30% 29% 27% 26%
115% 114% 112% 107% 104% 97% 93%
58% 58% 57% 54% 52% 49% 47%
8% 8% 7% 7% 7% 7% 6%
12% 12% 12% 12% 11% 11% 10%
20% 20% 20% 19% 18% 17% 17%
Full Time Equivalent (FTE) Personnel
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
All Funds All Funds
By Department
City Attorney 5.00 5.00
City Clerk 4.88 4.88
City Council 5.00 5.00
City Manager 9.48 9.48
Community Development 57.92 57.92 Finance 18.00 18.00
Human Resources 11.48 12.48 Information Technology 14.23 14.23 Library 53.66 49.74
Parks and Recreation 116.17 116.17 Police 175.75 174.96
Public Works 166.04 166.04
Total City 637.61 633.90 By Type
Merit Positions 549.14 550.14 Per Diem 88.47 83.76
Total City 637.61 633.90 General Fund
General Fund Summary

GENERAL FUND
2025-26

PROPOSED
BUDGET
Resources
Property Tax $ 86,025,000
Sales Tax - Local 1% 20,200,000 Sales Tax - Prop 172 400,000 Sales Tax - 1/4% Measure S 7,000,000 Property Transfer Tax 8,600,000 Transient Occupancy Tax 8,000,000 Business License Tax 4,000,000 Franchises 3,430,000
Golf Fees 3,343,500
Recreation Service Charges 4,801,000 Permits, Fees, and Fines 7,731,708 Intergovernmental 3,456,445 Interest and Miscellaneous 6,338,712 Transfers In - In Lieu Charges 5,070,896 Transfers In - Rent from Sewer Fund 1,800,000 Transfers In - Construction Services 530,000 Transfers In - Gas Tax 1,747,500 Current Resources $ 172,474,761
Use Unassigned Fund Balance $ 15,190,724 Total Resources $ 187,665,485
Expenditures by Department
City Attorney $ 1,362,187
City Clerk 1,097,892
City Council 473,805
City Manager 3,137,343
Community Development 2,082,117 Finance 4,396,466
Human Resources 2,766,970
Information Technology 5,245,027 Library 10,024,450
Parks and Recreation 23,519,690 Police 66,284,984
Public Works 10,016,465
Non-Departmental 6,121,556
Transfers Out 12,375,000
San Mateo Consolidated Fire Department Constribution and Fire Legacy Costs 38,761,533 Total Expenditures $ 187,665,485
Resources Over / (Under) Expenditures $ - GENERAL FUND 10-YEAR FORECAST
10-YEAR FORECAST 2023-24

ACTUALS
2024-25

ESTIMATED

ACTUALS
2025-26

FORECAST
2026-27

FORECAST
2027-28

FORECAST

REVENUES
Property Tax 78,606,527$ 84,000,000$ 86,025,000$ 91,017,000$ 91,828,000$ Sales Tax - Local 1% 20,543,116 20,500,000 20,200,000 20,402,000 20,810,000 Sales Tax - Prop 172 390,040 420,000 400,000 402,000 404,000 Sales Tax - 1/4% Measure S 6,839,831 7,000,000 7,000,000 7,070,000 7,211,000 Property Transfer Tax 8,634,762 14,000,000 8,600,000 8,600,000 8,600,000 Business License Tax 8,448,490 7,250,000 8,000,000 8,160,000 8,320,000 Transient Occupancy Tax 5,326,073 4,000,000 4,000,000 4,080,000 4,162,000 Franchises 3,403,374 3,350,000 3,430,000 3,460,000 3,490,000 Golf Fees 3,740,764 3,233,500 3,343,500 3,410,000 3,480,000 Recreation Service Charges 4,024,832 4,131,057 4,801,000 5,040,000 5,190,000 Permits, Fees, and Fines 9,448,804 7,702,786 7,731,708 8,100,000 8,340,000 Intergovernmental 3,066,664 3,368,551 3,456,445 3,600,000 3,670,000 Interest and Miscellaneous 11,086,174 5,950,000 6,338,712 7,400,000 6,875,000 Transfers In - In Lieu Charges 4,688,762 4,920,000 5,070,896 5,220,000 5,380,000 Transfers In - Rent from Sewer Fund 1,800,000 1,800,000 1,800,000 2,250,000 2,700,000 Transfers In - Construction Services 499,933 510,000 530,000 550,000 570,000 Transfers In - Gas Tax 1,747,500 1,747,500 1,747,500 1,747,500 1,747,500 Transfers In from Downtown Parking Fund - - - - - TOTAL REVENUES 172,295,644$ 173,883,394$ 172,474,761$ 180,508,500$ 182,777,500$

EXPENDITURES
Salaries and Wages 52,839,797$ 56,635,169$ 56,805,874$ 58,510,000$ 60,265,000$ Benefits 21,035,521 23,512,566 23,835,672 23,990,000 24,110,000 Pension Unfunded Liability (UAL) 11,440,980 12,984,027 13,613,649 14,330,000 14,890,000 Non-Personnel Operating 37,047,757 40,995,412 42,273,757 44,705,000 46,005,000 SMC Fire and Legacy Costs 34,195,622 36,095,951 38,761,532 40,519,000 42,171,000 Transfers Out 15,683,288 14,100,000 12,375,000 9,742,900 9,741,300 Budget Savings - (4,000,000) (4,000,000) (4,000,000) (4,500,000) TOTAL EXPENDITURES 172,242,965$ 180,323,125$ 183,665,484$ 187,796,900$ 192,682,300$ Resources Over / (Under) Requirements 52,680 (6,439,731) (11,190,723) (7,288,400) (9,904,800) Transfers Out to CIP Investment Reserve - - (25,000,000) - - Beginning Fund Balance 117,879,215$ 117,931,895$ 111,492,164$ 75,301,442$ 68,013,042$ Ending Fund Balance 117,931,895$ 111,492,164$ 75,301,442$ 68,013,042$ 58,108,242$ GENERAL FUND 10-YEAR FORECAST
2028-29

FORECAST
2029-30

FORECAST
2030-31

FORECAST
2031-32

FORECAST
2032-33

FORECAST
2033-34

FORECAST
2034-35

FORECAST
97,964,000$ 101,686,000$ 101,634,000$ 107,970,000$ 114,854,000$ 117,930,000$ 123,550,000$ 21,226,000 21,651,000 22,084,000 22,526,000 22,977,000 23,437,000 23,906,000 408,000 412,000 416,000 420,000 424,000 428,000 432,000 7,355,000 7,502,000 7,652,000 7,805,000 7,961,000 8,120,000 8,282,000 8,600,000 8,600,000 8,600,000 8,600,000 8,600,000 8,600,000 8,600,000 8,490,000 8,660,000 8,830,000 9,010,000 9,190,000 9,370,000 9,560,000 4,245,000 4,330,000 4,417,000 4,505,000 4,595,000 4,687,000 4,781,000 3,520,000 3,560,000 3,600,000 3,640,000 3,680,000 3,720,000 3,760,000 3,550,000 3,620,000 3,690,000 3,760,000 3,840,000 3,920,000 3,998,400 5,350,000 5,510,000 5,680,000 5,850,000 6,030,000 6,210,000 6,400,000 8,590,000 8,850,000 9,120,000 9,390,000 9,670,000 9,960,000 10,260,000 3,740,000 3,810,000 3,890,000 3,970,000 4,050,000 4,130,000 4,210,000 6,350,000 6,000,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 5,540,000 5,710,000 5,880,000 6,060,000 6,240,000 6,430,000 6,620,000 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 590,000 610,000 630,000 650,000 670,000 690,000 710,000 1,747,500 1,747,500 1,747,500 1,747,500 1,747,500 1,747,500 1,747,500 - - - - - - - 189,965,500$ 194,958,500$ 195,070,500$ 203,103,500$ 211,728,500$ 216,579,500$ 224,016,900$ 62,073,000$ 63,935,000$ 65,853,000$ 67,829,000$ 69,864,000$ 71,960,000$ 74,119,000$ 24,830,000 25,570,000 26,340,000 27,130,000 27,950,000 28,780,000 29,650,000 16,210,000 16,440,000 16,620,000 16,150,000 16,020,000 15,150,000 14,800,000 47,093,000 48,210,000 49,359,000 50,541,000 51,756,000 53,004,000 54,289,000 44,204,000 45,811,000 47,081,000 47,993,000 49,089,000 49,890,000 50,956,000 9,743,100 9,843,100 9,841,300 9,890,550 9,891,800 10,136,800 10,139,550 (4,500,000) (4,500,000) (5,000,000) (5,000,000) (5,000,000) (5,000,000) (5,000,000) 199,653,100$ 205,309,100$ 210,094,300$ 214,533,550$ 219,570,800$ 223,920,800$ 228,953,550$ (9,687,600) (10,350,600) (15,023,800) (11,430,050) (7,842,300) (7,341,300) (4,936,650) - - - - - - - 58,108,242$ 48,420,642$ 38,070,042$ 23,046,242$ 11,616,192$ 3,773,892$ (3,567,408)$ 48,420,642$ 38,070,042$ 23,046,242$ 11,616,192$ 3,773,892$ (3,567,408)$ (8,504,058)$ Revenue and Expenditure Assumptions

Revenues and expenditures in the Fiscal Year (FY) 2025-26 business plan and corresponding long-term financial plan are based on assumptions about the factors impacting each major revenue and expenditure category. For revenues, assumptions are largely based on economic or other conditions outside the City’s control. Assumptions for expenditures differ, however, in that in many cases, the assumptions are predominantly under the City’s control. A detailed discussion of the projection methodologies and major assumptions made for the FY 2025-26 business plan and corresponding long-term financial plan are discussed in detail below.

GENERAL FUND REVENUES

Revenue Estimation Methodology
All revenue assumptions and projections are reviewed and revised each fiscal year. Key elements that have an impact on major revenue sources are identified and analyzed to ensure that the projection methodology is as reliable as possible over the long term. Historical data trends indicate that significant swings in major revenue s can occur due to economic cycles. Projecting revenues based on the high point of the economic cycle overstates the City’s financial position and could result in spending patterns that cannot be sustained. Conversely, projecting revenues from the lowest point of the economic cycle understates the long-term financial position of the City and can cause unnecessary service reductions.

Property Taxes
Property Tax is the largest source of General Fund revenue, comprising approximately 50 % of the General Fund total revenues.

The property tax base in San Mateo has been very stable, declining only slightly during the Great Recession and pandemic.

However, due to the Federal Reserve’s monetary policy to control high inflation and the current economic uncertainty, we continue to live in a high-interest rate environment. High borrowing costs have a damper effect on the housing market, which in return hurts the City’s property tax revenue growth.

Property tax revenue is projected to be $86.0 million for fiscal year (FY) 2025-26, an increase of $2.0 million compared to $84.0 million estimated for FY 2024-25. This estimate is based on several key assumptions which we will discuss in detail. Of all, the most important factor this year is whether the State of California will backfill the FY 2023-24 property tax in-lieu of vehicle license fees (VLF) shortfall in FY 2025-26, including the City’s share of $6.6 million.

The City’s property tax revenue includes several main categories:

• Secured Property Tax is the tax on real property and the structures on that real property. • AB 26 Redevelopment Residual Revenues represent the City’s designated share of tax increment from the former redevelopment project areas that are in excess of the Successor Agency’s required obligated payments. These revenues are primarily from the secured tax base in the former redevelopment project areas. • AB 1290 Redevelopment Pass-through funds represent the City of San Mateo’s General Fund share of the AB 1290 pass - through payments made to taxing entities based on the tax increment funds used by Successor Agency to pay remaining debt obligations. Similar to the AB 26 funds, these revenues are primarily from the secured tax base in the former redevelopment project areas.
• Educational Revenue Augmentation Fund (ERAF) is a mechanism used by the State to shift funding from local property tax dollars to public schools. When local property tax dollars shifted into ERAF exceed what is necessary to fund the schools, those excess funds are returned to the local taxing entities via Excess ERAF revenue. San Mateo is one of the five counties in the State where Excess ERAF is generated.

Revenue and Expenditure Assumptions

• Property Tax in Lieu of VLF represents the swap of vehicle license fees (VLF) for property tax as part of a state- local budget agreement in 2004. The agreement permanently reduced the VLF tax rate from 2% to 0.65%, and the revenue loss was replaced with a like amount from property tax. After FY 2004-05 base year, property tax in lieu of VLF increases annually in proportion to the growth in assessed valuation. Property tax in lieu of VLF has two funding sources: property taxes from non-basic aid school districts, and ERAF that would otherwise go to non-basic aid school districts. • Unsecured Property Tax represents the tax on appurtenances such as furniture, machinery, and equipment. • Supplemental Property Tax is the result of reassessing the value of real property when there is a change of ownership or new construction is completed after the official lien date. • Unitary Property Tax is assessed on property owned by utilities, such as power lines, cable, etc. • Homeowners’ Property Tax Relief revenues are reimbursements from the State for revenues lost due to the homeowners’ property tax exemption on the first $7,000 of assessed value of their principal place of residence.

Secured Property Tax Assumption:

Secured property tax constitutes over 60% of total property tax revenues and is projected to grow roughly 4% in the upcoming FY 2025-26. The increase reflects the change in assessed value (AV) based on the County Assessor’s Office estimated property tax roll. While the average annual growth in AV over the past 10 years has been around 7% indicating strong demand in our region, we have experienced a slowdown in the housing market reflected in both real estate sales volume and prices. In the long-term plan, a conservative growth estimate of 4% is utilized for the first five years and a more optimistic growth estimate of 5% is used for the second five years of the plan. These assumptions factor in historic growth rates and the current economic environment.

Property Tax In-Lieu of Vehicle License Fees (VLF) Assumption:

As discussed above, in 2004, as a part of the budget deal with the State of California, the vehicle license fee rate was reduced from

2.0% to 0.65%. To offset the onerous financial impact to local governments, the State backfilled the reduction of vehicle license fees with property tax, which is known as property tax in-lieu of vehicle license fees (VLF). The primary caveat being that the funding source for the VLF is property tax and ERAF from non-basic aid school districts, which are school districts tha t are not able to meet their State-determined minimum funding level (as defined by Proposition 98) through property taxes. The funding mechanic is that the counties and cities use the property tax and ERAF from non- basic aid school districts to fund VLF, then the school districts get funding backfilled by the State General Fund.

In San Mateo County, due to decreases in student enrollment and increases in property taxes, more and more school districts have switched to basic-aid status, meaning local property taxes are sufficient to meet the schools’ State minimum funding level.

Currently, 18 of the 23 school districts in San Mateo County are basic- aid school districts, leaving only five non-basic aid school districts. As such, property tax and ERAF from these limited non- basic-aid schools are not enough to fulfill the VLF revenues obligated to the county and local cities, creating the chronic VLF shortfall issue.

To date, San Mateo County is one of only three counties in the State of California that has had VLF shortfalls. At present, the only recourse to be made whole for the VLF shortfall is to file a claim with the State for it to consider as a part of its budget deliberations in the subsequent fiscal year. In the last few years, the State has reimbursed counties and cities for their VLF shortfalls through its annual budget process. However, as the county-wide VLF shortfalls continue to widen, the State’s willingness to fund this obligation may diminish, particularly during fiscal years when the State experiences significant deficits. The most recent State budget estimates a $12 billion deficit.

Revenue and Expenditure Assumptions

In FY 2023-24, the county-wide VLF shortfall was $114 million, and the City’s share of the VLF shortfall was $6.6 million. Despite the collective efforts from San Mateo County and each local city within the County to contact state representatives to address the FY 2023-24 VLF shortfall, the State has not yet included VLF backfill funding in its FY 2025 -26 proposed budget (May revision). San Mateo County and the cities will continue to fight for the VLF revenues. The next step, if the State adopts its 202 5-26 budget without VLF backfill, is to advocate through our state representatives to include the VLF funding in the State’s budget amendments.

The VLF shortfalls have become a major threat to our financial sustainability. San Mateo County projects that, over the next 7 -8 years, at least three more of the remaining non-basic aid school districts will shift to basic-aid status. As such, the county-wide VLF shortfall will grow exponentially, from the shortfall of $114 million for FY 2023-24 to over $300 million by FY 2031-32. The City’s share of the county-wide VLF shortfall is about 6%. If the County lost three more non-basic aid schools in 7-8 years, the City’s VLF shortfall will grow to approximately $19 million by FY 2031-32. Therefore, it is imperative for the county and cities in San Mateo County to continue advocating for the VLF revenue, as losing State funding on VLF shortfalls will severely impact to the City ’s financial health and this funding should remain local as it is tax revenue remitted from property owners within the City and County.

For the next fiscal year, our assumption is that the State will fund at least half of its VLF obligations. In the 10-year forecast, we use a middle-ground assumption, assuming the County and cities will eventually find a permanent fix for the VLF issue, and this revenue will become stable.

Other Assumptions:

Excess ERAF Funds continue to be a steady, yet somewhat uncertain, revenue source for the General Fund. The long -term plan anticipates the continued receipt of Excess ERAF revenues annually. Excess ERAF is projected to be $8. 4 million in 2025-26. There have been legislative efforts to increase the Local Control Funding Formula (LCFF),which would ultimately increase funding for public school districts and decrease the amount of Excess ERAF that is available. Conversely, these efforts to increase the L CFF would likely shift more school districts into non-basic aid status and somewhat address the VLF shortfall issue, but it is difficult to quantify the impact until impartial analysis has been completed by the Legislative Analyst’s Office (LAO).

AB 26 Redevelopment Residual Revenues: Baseline revenue amount is projected to be $6.0 million for FY 2025-26 and is expected to grow at the same rate annually as the secured tax projection. Per Council direction, 20% of this residual revenue should be reserved annually in a housing set-aside in the General Fund. Policy H1.2 of the City’s Housing Element also calls for the City to contribute 20% of the AB26 redevelopment residual revenue to the housing set -aside, which the City can use for affordable housing developments. As a result, in the FY 2025-26 budget, $1.0 million has been added to the housing set-aside reserve.

AB 1290 Redevelopment Pass-through: These funds continue to grow slightly and are estimated to grow 4% over the long -term forecast.

Other property tax components, including unsecured, supplemental secured, and unitary property tax revenues, as well as Homeowners’ Property Tax Relief revenues, are expected to remain flat due to the nature of the revenue source.

Background Information:

The Successor Agency to the Redevelopment Agency of the City of San Mateo is responsible for payment of the remaining recognized obligations, which include tax allocation refunding bonds (TAB). The last debt service payment for the Series 2015A TAB will occur in fiscal year 2032-33, which is the trigger event for the dissolution of the former Redevelopment Agency of the City of San Mateo. Beginning in fiscal year 2033-34, rather than receive AB 26 and AB 1290 property tax revenues, the taxing ent ities, which includes the City, will receive the full property tax increment, as all of the recognized obligations will be satisfied . As such, the City will need to address this change in advance to determine if it wants to continue contributing to the housing set -aside, as the AB 26 property tax revenue source will no longer exist beginning in fiscal year 2033 -34.

Revenue and Expenditure Assumptions

Sales Tax
Sales tax revenue is currently the second largest single revenue source of the General Fund . It has been a stable revenue source for the City and is projected to stay flat with only moderate 1-2% annual growth.

It is worthwhile to note that the City’s share of the local 1% sales tax from internet sales is allocated through the County pool based on the City’s proportionate share of locally generated sales tax. There have been several legislative efforts to allocate internet sales tax based on point of delivery, which would serve the City well, but not enough political will to properly address the issue.

The FY 2025-26 budget assumes Local 1% sales tax revenues (Bradley Burns) of $2 0.2 million and local 1/4% sales tax revenues (Measure S) of $7.0 million. Slow and steady growth is anticipated for sales tax throughout the long- term financial plan.

Property Transfer Tax
The City collects a real property transfer tax (RPTT) upon the sale or transfer of any property within the City boundaries. As a charter city, San Mateo voters approved a 0.5% real property transfer tax (RPTT) rate. Furthermore, in November 2022, San Mateo voters approved Measure CC that increased the RPTT rate to 1.5% for properties sold or transferred with a value of $10 million or more.

This revenue source is extremely volatile, since it is driven by both property values and transaction volume, which can vary significantly, even during periods of relatively stable economic growth. D uring the Great Recession, RPTT dropped 70% from $10 million to $3 million over a two-year period and took six years to climb back up to the $10-million-dollar level. In 2018-19, RPTT reached a record-high $14.0 million, but only one year later dropped nearly 30% to $9 million in 2019-20 due to COVID pandemic.

Following the pandemic, RPTT rebounded quickly and reached $14.3 million in 2021 -22, then dropped again to $7.1 million one year later due to the rise of mortgage interest rates which negatively impact the real property sales value and transaction volume.

RPTT is anticipated to be almost $14.0 million for FY 2024-25, partly due to the addition of the Measure CC revenues. These examples, though, showcase how volatile this revenue source can be.

Rather than try to determine the year-over-year trend, the General Fund Long-Term Plan uses an average of $8.6 million, including in fiscal year 2025-26. Finance staff will continue to monitor market trends at the local and national level and adjust assumptions accordingly.

Transient Occupancy Tax
Transient Occupancy Tax (TOT) is dependent on both the occupancy levels and room rates of the City’s hotel stock. TOT revenue is very sensitive to broader economic trends. In good economic times, both occupancy rates and room rates increase, but during recessionary periods, both go down, which can result in a significant reduction in TOT revenue. In the City of San Mateo, the existing hotel stock primarily serves business travelers flying into and out of the San Francisco International Airport.

TOT revenue suffered the most during the pandemic and was just about to return in FY 24- 25 to the $7.0 million pre-pandemic baseline, when a major hotel within the City shut down. Given this, the new baseline for TOT is estimated at $4.0 million and is used in FY 2025-26 projections and in the long-term financial plan.

Business License Tax
The City of San Mateo Municipal Code requires all persons or businesses doing business in the City of San Mateo to pay an ann ual business tax, which is also referred to as a business license. The payment of this tax is required prior to the commencement of business in San Mateo. Depending on the type of business, the business license tax is either a flat fee or is based on gross receipts.

Business license tax revenues have seen steady growth over the past decade. This revenue resource is projected to be $8 million in FY 25-26, then grow at a modest 2% annually in the long-term financial plan.

Revenue and Expenditure Assumptions

Franchise Fees
The City receives franchise payments from companies providing garbage, electricity, gas, and cable television services. Small growth is expected from this revenue source, 1% annually in the forecast. This revenue source will continue to be carefully monitored, with future growth projections adjusted accordingly. Overall, franchise fee revenues are projected to be just over $3.4 million in 2025-26.

Golf Fees
Golf fee revenues primarily come from rounds of golf played, but other sources include driving range revenue and merchandise sales. The City’s golf course continues to perform well in the post -pandemic period. The budget projection is set at $3.4 million for FY 2025-26, with a moderate 2% annual growth in the long-term financial plan.

Recreation Service Charges
Recreation service charges include the revenue collected from the various recreation programs that are run by the Parks and Recreation Department, including camps, youth and adult programs, picnic and recreation center rentals, and lagoon use fees. For FY 2025-26, total revenues from recreation service, including grants, are projected to be $4. 8 million, with a 3% annual increase in the ten-year long-term forecast.

Permits, Fees, and Fines
The City receives permit, fee, and fine revenues from a number of sources across departments, including parking and traffic - related citations (Police) and encroachment permits (Public Works). In 2021- 22, the Downtown Parking Fund was merged into the General Fund. As such, parking revenues are now reported under this revenue category in the General Fund. In total, General Fund’s permit, fee, and fine revenues are projected to be $7.7 million for 2025-26 then grow by 3% annually in the long-term financial plan.

Intergovernmental
Intergovernmental revenues are predominantly grants or reimbursements from other governmental agencies, including other cities, the county, the state, and the federal government. Because this revenue category consists predominantly of grants and reimbursements, many of which are one-time funds, revenues can fluctuate annually. Additionally, the City has an agreement with the San Mateo Consolidated Fire Department (SMC Fire) to provide Human Resources and Finance services. Reimbursement from SMC Fire is recorded here under Intergovernmental revenues. For FY 2025-26, this revenue is projected to be $3.5 million with 2% modest growth in the ten-year forecast.

Interest and Miscellaneous
This revenue category includes interest earnings on the City’s investment portfolio and other smaller revenues not attached to other categories. Budget projections for investment earnings are on a cash basis to avoid fluctuations due to mark-to-market accounting adjustment on the City’s investment portfolio. In total, this category of revenues is expected to generate approximately $6.1 million in 2025-26, mostly due to strong investment returns.

In-Lieu Charges
In-lieu charges are funds transferred into the General Fund from other funds to cover the cost of City -wide administration. These costs include covering a portion of expenditures related to the operation of the City Manager’s Office, City Attorney’s Office, City Clerk, Finance, Human Resources, and Information Technology. It also covers costs such as the other funds’ share of general liability expenses. A total of approximately $5.1 million is projected in 2025-26.

Revenue and Expenditure Assumptions

In-lieu charges are set to grow at a rate of 3% annually in the ten-year forecast. The increase is largely due to increases in the costs of providing administrative services. In accordance with the best practices, the City’s cost allocation study was last updated in 2020-21, and it is expected that the study will be maintained and updated on a regular basis .

Transfers In – Gas Tax
The Gas Tax Fund is set to transfer $1.7 million annually to the General Fund in the long -term forecast to cover a portion of street maintenance costs within the Public Works Department. This transfer has been set at a flat amount annually, which means over time it will provide less and less funding in terms of real dollars. While the allocation of $1.7 million was increased in 2018- 19 from the historical transfer of $1.5 million, a new allocation is not currently expected given the demand for Gas Tax dolla rs. The cost of street maintenance along with the revenues from Gas Tax funding will be monitored and future transfers will be adjusted accordingly.

GENERAL FUND EXPENDITURES

Expenditure Estimation Methodology
Similar to the revenue assumptions, expenditure assumptions and projections are reviewed and revised each fiscal year. Unlike revenues, especially tax revenues, General Fund expenditures are largely under the control of the City. As such , assumptions for expenditure growth are generally able to be aligned with revenue growth where possible. In cases where an expenditure category is not under control of the City, as is the case for CalPERS pension contributions, the projected increases are treated as nondiscretionary and take precedence in terms of the allocation of resources, limiting the City’s flexibility to prioritize where fu nds are expended. Assumptions for each of the General Fund’s expenditure categories are discussed in detail below.

Personnel Costs
Personnel costs, including the City’s share of SMC Fire’s personnel costs, represent over 70% of total General Fund expenditures.

The General Fund is projected to allocate $94.1 million for personnel costs in FY 2025-26. To best reflect the personnel costs, the General Fund ten-year forecast splits costs into three categories: salaries, benefits, and payment on the unfunded pension liability.

This allows assumptions for cost increases in the three categories to move independently from one another . Assumptions for the major categories of personnel expenditures are discussed in the detail below.

Increases for salaries and salary-related costs, such as overtime, are initially based on existing labor contractual agreements or assumptions about the outcome of ongoing and future negotiations. Beyond those contractual assumptions, salary increases are set in the ten-year forecast based on projected modest salary increases, which generally aligns with our long-term CPI projections, throughout the forecast. It is important to note that these are only projections of possible salary increases and do not reflect the actual salary adjustments that will be made in the future. There are several factors that have to be considered related to salary increases in the future, including the City’s economic condition, the amount of unassigned fund balance in the General Fund, labor negotiations, and our ability to compete in the market for employees.

As previously discussed, the cost of CalPERS pension contributions is not something the City has control over the way it does over many other expenditures. As a result, the ten-year forecast contains projected increases in the City’s contribution rates tha t were developed based on the latest CalPERS actuarial valuation and projection. These contribution rates, which have been adjusted to consider the employees’ share of the City’s contribution rates, factor in assumptions related to turnover of City employees and the fact that new employees will come in under lower pension formulas. The rates also factor in the most up -to-date information available about the economic and actuarial changes CalPERS has recently implemented, as well as updated investment return results.

Revenue and Expenditure Assumptions

The City’s pension contribution increased significantly starting in fiscal year 2024-25 due to the CalPERS investment loss of negative 6.1% in FY 2021-22. Such investment loss will cost the City over $100 million in additional pension costs over the 20-year amortization period. As a result, the City started paying about $6 million more in FY 24-25 than FY 23-24 and will be required to pay an additional $1-2 million annually during the rest of the five-year ramp-up period (FY 2025-26 through FY 2028-29). Once the five-year ramping has been completed, the overall increase in pension contributions is projected to be an additional $ 5 million over the pension contribution for FY 23-24 for several years before gradually decreasing.

FISCAL YEAR

GENERAL FUND

NORMAL COSTS
(in millions)

GENERAL FUND

PAYMENT ON

UNFUNDED LIABILITY
(in millions)

GENERAL FUND
TOTAL
(in millions)

PERCENTAGE

OF TOTAL GENERAL

FUND OPERATING
EXPENDITURES*
2024-25 $ 5.8 $ 19.4 $ 25.2 15% 2025-26 5.9 20.5 26.4 15%
2026-27 6.0 21.6 27.6 16%
2027-28 6.0 22.4 28.4 16%
2028-29 6.0 24.3 30.3 17%
2029-30 6.0 24.7 30.7 16%
2030-31 6.1 25.0 31.1 16%
2031-32 6.1 $24.3 30.4 15%
2032-33 6.1 24.1 30.2 15%
2033-34 6.1 22.9 29.0 14%

Source of Information: CalPERS Pension Outlook
*Total operating expenditures exclude transfers out.

In FY 22-23, CalPERS had an investment gain of 5.8% and although this fell short of its long -term investment of return goal of 6.8%, it did not significantly affect pension contributions in FY 25-26. However, if CalPERS investment returns continue to fall short of the long-term investment goal, it will create another layer of unfunded pension liability to the City. The General Fund Long-Term Plan assumes that CalPERS will meet its target rate of return (discount rate) for the remainder of the ten -year forecast.

Background Information:

Payment on the unfunded pension liability includes the payment for fire employees that have transferred to SMC Fire, as those costs correspond to the years of service that the fire employees had worked for the City and remain the City’s responsibility even after transfer of operations. In the ten-year financial plan, fire’s portion of the unfunded pension liability is included as part of fire legacy costs. More detail on this is discussed below in the subsection for San Mateo Consolidated Fire Department Contribution and Fire Legacy Costs.

Other major costs in this category include medical, dental, and vision premiums paid by the City; Medicare and Social Securit y taxes; workers’ compensation; and deferred compensation. Medical insurance, which is the second- largest cost in this category, is set in the forecast to increase at 6.5% for the duration of the long-term plan. These assumptions are based on historical trends and assumptions used by the consulting actuary in the valuation of the City’s retiree medical plan. For other benefit costs t hat move with salary increases, such as Medicare and Social Security taxes, those are set to increase at the same rate as salarie s in the ten-year financial plan.

Revenue and Expenditure Assumptions

Non-Personnel Costs
The remaining General Fund’s expenditures consist of non-personnel costs. For the ten-year forecast, non-personnel expenditures were broken down into distinct categories: operating, transfers out, and the annual contribution to the San Mateo Consolidated Fire Department and fire legacy costs. A brief description of the types of expenditures in each category is provided below.

OPERATING EXPENDITURES
Operating expenditures, which total $42.3 million in FY 2025-26, include spending on a wide variety of expenditure categories related to operations of the City. Some of the major expenditure categories include professional and contract services, general liability insurance, utilities costs, and capital outlay.

Professional and contract services in this category total about $11.8 million in 2025-26 and it covers a wide variety of service areas, such as engineering services, legal services, the annual financial audit, consultants for special studies, animal control, and the maintenance of street and park trees. Because expenditures in this category are largely within the City’s control, the long -term forecast reflects an annual increase of 2-3%.

General liability insurance is another major expenditure category which has grown exponentially in the last few years. The budget for FY 2025-26 is $4.4 million and expenditures are expected to keep growing significantly over the 10 year forecast, with 5% increases in insurance premiums assumed for the majority of the forecast years.

Utilities costs, which total $4.5 million in 2025-26, include gas, electricity, water, and telecommunications costs required for city operations. Of the total, over 55% goes toward gas and electricity, 25% goes toward water, and the remaining 1 5% is for telecommunications. For the ten-year forecast, the annual inflationary increase is set at 2%. These increases consider expected growth in costs, which are largely beyond the City’s control, although increased conservation efforts can help control expenditure growth in this area.

The capital outlay expenditures include a "rental rate" charged to departments to cover the cost of replacing vehicles and equipment through the Vehicle and Equipment Replacement Fund. Funds are accumulated while the vehicle or equipment is still in use, ensuring sufficient resources are available for replacements. The budget for this category is $1. 57 million for the 2025-26 fiscal year. For more information about the Vehicle and Equipment Replacement Fund and its long -term financial plan, please refer to the Fund Information section of this budget document.

TRANSFERS OUT
This category of funding includes the transfers the General Fund makes to various funds to fund ongoing and one -time needs.

Ongoing transfers are programed in the long-term forecast.

In the proposed 2025-26 budget, transfers out is projected to be $12.375 million, comprising of the following:
• $8.925 million contributions to Capital Improvement Plan (CIP), of which $3 million is from Measure S and $.875 million is from Measure CC;
• $2.7 million from Measure S for debt service related to the 2020A Revenue Bonds issued for flood control and street rehabilitation improvements;
• $0.41 million annual contribution to the Equipment and Vehicle Replacement Fund for major building component replacement; and
• $0.35 million to replenish the 2% Hotel Tax Fund’s fund balance to meet debt service requirements.

Revenue and Expenditure Assumptions

SAN MATEO CONSOLIDATED FIRE DEPARTMENT CONTRIBUTION AND FIRE LEGACY COSTS On January 13, 2019, the City’s fire operations were transferred to the San Mateo Consolidated Fire Department (SMC Fire), a Joint Powers Authority (JPA), for fire, rescue, and emergency services between the cities of Belmont, Foster City, and San Ma teo.

Pursuant to the JPA, SMC Fire costs are split 20% Belmont, 20% Foster Cit y, and 60% San Mateo.

The City’s share of SMC Fire costs is projected to be $31.05 million for 2025-26. Additionally, there are legacy costs that remain with the City, which are costs that were incurred during the time that the fire employees had worked for the City. These legacy costs include the unfunded pension liability, workers’ compensation liability, and retiree health benefit liability. Factorin g in the legacy costs that remain with the City, the total cost to the City’s General Fund for fi re service for 2025-26 is $38.8 million.

The long-term forecast presents the City’s contribution to SMC Fire and its fire legacy costs in a separate line to provide greater transparency and better projection of costs. The legacy costs are based on the consulting actuary’s projections. The City’s 60% contributions were based on the SMC Fire budget and five-year forecast. Beyond that, a 4% increase has been projected for the first five years of the 10-year plan and a 3% annual growth has been projected for the remaining.

BUDGET SAVINGS
The budget savings amount represents expenditure reductions and/or revenues exceeding expectations . Including this adjustment in the General Fund long-term forecast presents a more realistic view of the General Fund’s financial position.

TRANSFERS OUT TO CIP INVESTMENT RESERVE
The City Council approved staff’s recommendation to set aside some of the unassigned fund balance of the General Fund into a Capital Improvement Investment Reserve per the new Capital Inves tment Reserve Policy included in the Appendix section of the budget document. The Capital Investment Reserve set aside is $25 million starting in FY 2025- 26.

LONG-TERM FINANCIAL FORECAST
The long-term financial forecast includes all known and assumed resource demands. This provides a comprehensive view of the demand for the City’s resources and allows Council to prioritize how those resources should be allocated. The long-term forecast allows the City to foresee structural imbalance, and plan to position itself towards long-term financial sustainability.

Departments
Departments by Fund

FUND NAME CITY

ATTORNEY
CITY
CLERK
CITY

COUNCIL
CITY

MANAGER'S
OFFICE

COMMUNITY

DEVELOPMENT
General Funds
General X X X X X
Measure S Tracking
Housing Set-Aside X
Downtown Services
Recreation Services
Golf
Special Revenue Funds
Police Grants and Safety
Solid Waste X
HOME X
Community Development Block Grant X
Advance Planning X X
Construction Services X X X
City Housing X
Low and Moderate Income Housing Asset X
Parks and Recreation Revenue
Commercial Linkage Fee
Permanent Local Housing Allocation X
Landfill
Debt Service Funds
Street and Flood Control Projects Bond
General Obligation Bonds
2% Hotel Tax
Enterprise Funds
Sewer X x
Storm
Internal Service Funds
Vehicle and Equipment Replacement
Fleet and Building Maintenance
Benefits
Dental
Workers’ Compensation
Comprehensive Liability X
Departments by Fund

FINANCE HUMAN

RESOURCES

INFORMATION

TECHNOLOGY LIBRARY PARKS AND

RECREATION POLICE PUBLIC
WORKS
NON-

DEPARTMENTAL

X X X X X X X X
X X X
X X
X
X X
X
X X
X X

X X X X
X
X
X
X
X
X

X X X X
X
X
X
X
X
X
City Attorney
City Attorney
Mission Statement
The mission of the City Attorney’s Office is to provide excellent, clear legal advice and zealous, ethical legal representation for the City Council, City officers, and City staff to support them in their efforts to make San Mateo a community of the highest quality. The Office staff will be accessible to those they serve and respond to requests for service in a timely manner.

Services and Structure
Legal Counsel
The City Attorney’s Office is responsible for providing legal advice to the City Council, City staff, and City boards or commissions on matters that affect the conduct of City business; and for preparing contracts, ordinances, resolutions, and related legal documents to implement adopted City policy. The City Attorney’s Office also provides, either directly or through outside counsel, for the representation of the City in administrative proceedings and in court proceedings initiated by the City.

Litigation Defense
The City Attorney’s Office is responsible for providing, either directly or through outside counsel, for the defense of the City, its officers, and its employees against lawsuits and claims. The Office procures property and general liability insurance, contracts for claims adjusting services, and oversees the handling of Tort Claims. The City receives approximately 67 claims yearly, including claims for personal injury and property damage.

FINANCIALS 2021-22

ACTUALS
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
Expenditures by Category
Personnel $ 1,521,063 $ 1,653,253
Operating 4,122,800 5,222,800
Indirect & Overhead 65,073 66,977
Total Expenditures $ 5,708,936 $ 6,943,031
Funding Sources
General Funds $ 1,332,870 $ 1,362,187
Special Revenue Funds 229,249 278,376
Enterprise Funds 109,024 118,038
Internal Service Funds 4,037,793 5,184,430
Total Funding Sources $ 5,708,936 $ 6,943,031

FULL TIME EQUIVALENT (FTE) PERSONNEL
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
City Attorney 1.00 1.00
Assistant City Attorney 3.00 2.00
Executive Secretary to City Attorney 1.00 1.00
Senior Assistant City Attorney - 1.00
Total Merit 5.00 5.00
Total Per Diem - -
Total Positions 5.00 5.00
City Attorney
City Clerk
City Clerk
Mission Statement
The office of the City Clerk assists residents in navigating the City’s governance structure; provides access to local government decision-makers; is the compliance filing officer; is the City’s elections official; and ensures transparent processes and access to the City’s records.

Services and Structure
The Clerk’s office provides the following services:
• Oversight of the City Council legislative processes, including compliance with the Brown Act. • Coordination of recruitments for the City’s Boards and Commissions. • Preservation of the City’s official records and oversight of the City’s records management program. • Research and retrieval of records for the public and staff. • Maintenance of the City Charter and codification of the Municipal Code. • Management of agreements, contracts, and deeds.
• Coordination and execution of municipal elections.
• Act as the City’s compliance filing officer for the Political Reform Act and Public Records Act. • Administrative support to the City Council.
• Manages special relationships such as Sister City and Adopted Unit program.

FINANCIALS
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
Expenditures by Category
Personnel $ 828,307 $ 997,777
Operating 448,932 89,492
Indirect & Overhead 10,623 10,623
Total Expenditures $ 1,287,862 $ 1,097,892
Funding Sources
General Funds $ 1,287,862 $ 1,097,892
Total Funding Sources $ 1,287,862 $ 1,097,892

FULL TIME EQUIVALENT (FTE) PERSONNEL
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
City Clerk 1.00 1.00
Asistant to City Clerk 1.63 1.63
Deputy City Clerk 1.00 1.00
Management Analyst I/II 1.00 1.00
Total Merit 4.63 4.63
Total Per Diem 0.25 0.25
Total Positions 4.88 4.88
City Clerk
City Clerk

METRICS
Public Transparency and Compliance
We provide public access to legislative decision-making and government records.

Number of Public Records Act (PRA) requests received
Percent of PRA responses responded to within prescribed timelines Percent of Fair Political Practices Commission (FPPC) compliances documents filed on time Percent of minutes completed and published on next regular meeting agenda Legislative Process
We ensure that the City’s legislative decisions are smoothly and timely completed.

Number of contracts processed annually
Number of agendas developed for public meetings
Records Management
We are committed to protecting the City’s official public records.

Number of official records added to City’s electronic document management system.

Informational Metrics
Number of Statement of Economic Interest Forms filed
City Clerk
TYPE 2023-24

RESULTS
2024-25

ESTIMATE
2025-26
TARGET
2026-27
TARGET
Workload 1,500 1,700 1,900 2,100
Performance 100% 100% 100% 100%
Performance 89% 99% 99% 99%
Performance 75% 85% 95% 90%
Workload 133 150 150 150
Workload 50 50 50 50
Workload 1,922 2,200 2,500 2,800
Workload 190 170 170 170
City Council
City Council
Mission Statement
The City Council’s mission is to protect, maintain, and improve the quality of life for San Mateo residents and visitors by adopting legislation, providing policy direction for the City’s administration, and by promoting the best interests of the community locally and with other governmental agencies.

Services and Structure
The City Council is comprised of five members. Commencing with the November 2022 election, San Mateo began its transition to by-district election, with three members elected from Districts 1, 3 and 5. The City's transition to by-district elections was completed following the November 2024 election, where two at-large seats expired and Districts 2 and 4 held their first district elections. General municipal elections are held every even numbered year, with two Council Members elected the year preceding Leap Y ear and three elected the year after Leap Y ear. Council Members hold office for four-year terms commencing the first regular council meeting in December following the November election. The Council Members select from among themselves a Mayor and Deputy Mayor to serve for one-year terms. The Council sets policy for the City, enacts ordinances, approves the budget, and authorizes City expenditures.

The Office of the City Council focuses on the following areas: the formulation of City policies which reflect the needs, wishes, and priorities of the residents of San Mateo; the promotion of economic, cultural, and governmental well-being of the community. To assure that residents and visitors are kept informed of municipal activities and events; and to establish and maintain cooperative, effective relationships and communications with local, state, and federal agencies to influence policy decisions, legislation, and services that affect the City of San Mateo.

FINANCIALS
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
Expenditures by Category
Personnel $ 131,335 $ 133,099
Operating 311,735 327
,256
Indirect & Overhead 13,450 13,450
T
otal Expenditures $ 456,520 $ 473,805
Funding Sources
General Funds $ 456,520 $ 473,805
Total Funding Sources $ 456,520 $ 473,805

FULL TIME EQUIVALENT (FTE) PERSONNEL
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
City Council Member 5.00 5.00
Total Merit 5.00 5.00
Total Per Diem - -
Total Positions 5.00 5.00
City Council
City Manager's
Office
City Manager's Office
Mission Statement
The City Manager’s Office provides leadership, support, and coordination for City departments; provides policy recommendations to the City Council and implements Council policies and actions; represents City interests in local and regional issues; and oversees key program areas of a Citywide nature.

Services and Structure
The City Manager’s Office includes the following program areas:

City Management
Providing Citywide leadership and coordination to the organization and policy development support for the City Council.

Representing the City’s interests in local and regional issues, and ensuring diversity, equity, and inclusion (DEI) initiatives are integrated into our work citywide.

Economic Development
Supporting the economic vitality of the City through development opportunities, permitting support, business outreach and retention, marketing, and liaison work with economic development stakeholders and partner organizations.

Communications
Developing and implementing Citywide communications and community engagement activities and tools and serving as a resource for other departments. Managing the content, navigation, and design of the City’s website and social media channels.

Sustainability
Developing and implementing Citywide sustainability activities in support of Climate Action Plan and serving as a liaison to the Sustainability Commission.

Volunteer Engagement
Coordinating volunteer engagement opportunities with City departments and encouraging greater community involvement with special events and neighborhood activities.

FINANCIALS
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
Expenditures by Category
Personnel $ 2,436,809 $ 2,496,062
Operating 955,600 1,195,600
Indirect & Overhead 17,782 18,189
Total Expenditures $ 3,410,191 $ 3,709,851
Funding Sources
General Funds $ 2,845,299
$ 3,137,342
Special Revenue Funds 476,
182 481,671
Enterprise Funds 88,710 90,837
T
otal Funding Sources $ 3,410,191 $ 3,709,851

FULL TIME EQUIVALENT (FTE) PERSONNEL
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
City Manager 1.00 1.00
Assistant City Manager 1.00 1.00
Communications Manager 1.00 1.00
Communications & Engagement Coordinator I/II 1.00 1.00
Economic Development Manager 1.00 1.00
Executive Secretary to City Manager 1.00 1.00
Management Analyst I/II 1.00 1.00
Sr. Management Analyst 1.00 1.00
Sustainability Analyst 1.00 1.00
Total Merit 9.00 9.00
Total Per Diem 0.48 0.48
Total Positions 9.48 9.48
City Manager's Office
City Manager's Office

METRICS
Economic Development
Business assistance provided
Communications
Number of citywide eNewsletter subscribers
Volunteer Engagement
Number of volunteers and volunteer hours
City Manager's Office
TYPE 2023-24

RESULTS
2024-25

ESTIMATE
2025-26
TARGET
2026-27
TARGET
Workload 150 160 175 175
Performance 12,508 12,600 13,000 13,500
Workload 4,358 vols 3,000 vols 4,000 vols 4,500 vols
33,658 hrs 27,000 hrs 35,000 hrs 35,000 hrs
Community
Development
Mission Statement
To ensure a quality-built environment and healthy
neighborhoods that contribute to a strong economic base in the City of San Mateo; to be responsive to the community and respected by it; and to provide outstanding customer service.

Services and Structure
The Community Development Department (CDD) has broad
responsibilities, including long-range planning, review of applications for new development, administration of
the City’s General Plan, Zoning Code and the California Building Code, implementation of the City’s housing
programs, and maintenance of neighborhoods. Five
divisions work together to accomplish these goals: Building, Code Enforcement, Housing, Planning, and Business and
Admin Services. The department provides staff support and services to three standing commissions and committees,
including the Planning Commission, Community Relations
Commission, and Civic Arts Committee, and works with
numerous outside agencies, community groups and
homeowner associations.

Building Division
The Building Division manages programs and services
related to building permit plan review and inspection of buildings and structures to ensure a safe, accessible,
sustainable, and energy-efficient environment throughout our community. The division regulates local and state
laws related to building construction, maintenance, use, repair, and habitation. This includes the enforcement of the established health and safety codes, building codes, and standards.

The division is organized into three work units: the
permit center (City Hall public counter), plan review, and construction inspection. These units offer customers permit and property information, technical code review, permit issuance, and inspection services
Its mission includes customer service and public education to enhance the safety of existing buildings and to provide more public awareness of codes. In the event of an
emergency or disaster, it is the division’s responsibility to perform damage assessments for all structures.

Code Enforcement
Code Enforcement works to promote and maintain a
safe and desirable living and working environment on
all private properties around the City. Code Enforcement accomplishes this by enforcing the City’s Municipal Codes, including Property Maintenance, Nuisance, Building, and Community Development
Zoning Codes. Additionally, Code Enforcement works in
partnership with other divisions, departments, and outside agencies to support code compliance and assisting
property owners, businesses and tenants in understanding City rules and regulations.

Housing
The Housing Division manages programs and services
that increase and preserve affordable housing, improve
and preserve lower income neighborhoods, prevent and
address homelessness, and financially assist social service agencies providing services that benefit low-income
households, and works with Planning to administer and
implement programs and policies in the City’s Housing
Element and procure planning grants from federal and state sources. It manages grants from the federal Community
Development Block Grant (CDBG) program, the state
Permanent Local Housing Allocation (PLHA) fund, provides funding and ongoing monitoring of affordable housing,
including administration of the City’s Below Market Rate inclusionary program, and staffs the Community Relations Commission. The division also co-manages the HOME
Investment Partnership Program through the San Mateo
County HOME Consortium.

Planning
The Planning Division plans for the physical, social, and economic development of the City and ensures compliance with the General Plan, Zoning Code and other adopted
plans and policies, as well as the California Environmental Quality Act (CEQA) for both public and private projects.

Together with the Building Division, Planning reviews and processes private development projects to achieve a high- quality built environment and long-term economic growth.

The division has two functions: Advanced Planning
prepares long-range plans and policy documents for
the physical and economic development of the City, and
administers and maintains the City’s General Plan, including the Housing Element, Specific Plans, Zoning Code, and
other policy documents to ensure compliance with state
law and to reflect community needs and desires. Current Planning provides public information on City codes and
requirements, and reviews development applications,
including coordination with other Departments and outside agencies, to ensure that development within the City
is consistent with long-range plans, community needs,
development laws and state statutes.

Business and Admin Services
The Business and Admin Services Division manages the
Department's internal financial operations and annual
budget, provides administrative support to the other
four divisions, administers the Department’s business
and enterprise systems, processes Public Records Act
(PRA) requests and provides human resources support. In addition, the Division supports the City’s Child Care Loan program, Civic Arts Committee and Art in Public Places
program, and manages other special departmental projects.

Community Development

FINANCIALS
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
Expenditures by Category
Personnel $ 11,024,370 $ 11,365,964
Operating 6,302,898 4,938,385
Indirect & Overhead 1,467,801 1,509,793
Total Expenditures $ 18,795,069 $ 17,814,142
Expenditures by Cost Center
Advanced Planning $ 1,663,727 $ 1,884,767
Affordable Housing 2,974,218 2,236,653
Building Inspection 299,704 267,500
Building Operations 5,942,122 6,269,056
Building Plan Checking 636,000 636,000
CDD Operations 662,816 745,462
Current Planning 4,993,279 4,428,256
General Code Enforcement 1,572,803 1,296,049
Planning Commission 50,400 50,400
Total Expenditures $ 18,795,069 $ 17,814,142
Funding Sources
General Funds $ 2,701,780 $ 2,082,117
Special Revenue Funds 16,093,289 15,732,025
Total Funding Sources $ 18,795,069 $ 17,814,142
Community Development
Community Development

FULL TIME EQUIVALENT (FTE) PERSONNEL
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
Community Development Director 1.00 1.00
Administrative Assistant 4.00 4.00
Administrative Technician 2.00 2.00
Associate Planner 6.00 6.00
Building Inspector I/II 7.00 7.00
Business Manager 1.00 1.00
Code Enforcement Manager 1.00 1.00
Code Enforcement Officer I/II 3.00 3.00
Deputy Building Official 1.00 1.00
Deputy Community Development Director 2.00 2.00
Development Review Technician 5.00 5.00
Housing and Neighborhood Services Manager 1.00 1.00
Housing Specialist I/II 2.00 2.00
Inspection Supervisor 1.00 1.00
Managing Arborist 1.00 1.00
Office Assistant I/II 2.00 2.00
Permit Center Supervisor 1.00 1.00
Plan Check Supervisor 1.00 1.00
Plan Checker Engineer 5.00 5.00
Planning Manager 1.00 1.00
Principal Planner 2.00 2.00
Senior Business Systems Analyst 1.00 1.00
Senior Code Enforcement Officer 1.00 1.00
Senior Development Review Technician 2.00 2.00
Senior Management Analyst 1.00 1.00
Senior Planner 2.00 2.00
Total Merit 57.00 57.00
Total Per Diem 0.92 0.92
Total Positions 57.92 57.92
Community Development

METRICS
CDD Administration
Number of staff vacancies within the year
Number of vacancies filled within the year
Number of PRA requests
Average number of business days to respond to PRA requests Building
Number of building permit applications submitted - Commercial Percent of building permit applications submitted online - Commercial Number of building permit applications submitted - Residential Percent of building permit applications submitted - % Residential Online Number of building permit applications submitted - ADU and JADU (number is subset of residential applications total) Number of building permits issued - Commercial
Number of building permitsissued - Residential
Number of building permits issued - ADU and JADU (Accessory Dwelling Unit / Junior Accessory Dwelling Unit) Number of permit inspections completed
Percent of permit inspections completed - within a two-hour window Number of in-person customers served at the Permit Center - Total CDD Customers Number of planning applications reviews
Percent of planning application reviews completed within 10 business days Number of residential permit applications reviewed - Residential building permit review efficiency Number of residential permits issued that required more than 3 plan checks before approval Number of special and emergency event responses assisting SMCFD and SMPD - Special and Emergency Event responses Number of responses that were out of regular business hours - Special and emergency event responses Number of residential VOTC (virtual over the counter) online submittal applications - Virtual permit activity Number of solar APP+ applications - Virtual permit activity Number of of BD
reviews for CDD arborist
Number of of PA
reviews for CDD arborist
Number of
arborist inspections completed
Number of tree removal permit applications
Code Enforcement
Number of complaints received
Percent of new cases investigated/opened
P
ercent of new cases closed: cases that were opened and closed within reporting quarter Number of unpermitted construction cases opened
Number of all active cases: including cases from previous reporting quarters Percent of existing cases closed
Number of Substandard Housing Condition complaints received Percent of Substandard Housing Condition complaints received - Tenant relocation required Percent of Substandard Housing Condition complaints received - Repeat violator/violations Percent of Substandard Housing Condition complaints investigated within 48 business hours TYPE 2023-24

RESULTS
2024-25

ESTIMATE
2025-26
TARGET
2026-27
TARGET
Workload 24 5 5 5
Workload 20 5 5 5
Workload 450 800 700 700
Performance 8 10 10 10
Workload 282 300 350 350
Workload 88% 90% 90% 90%
Workload 2,873 3,892 3,892 3,892
Workload 75% 75% 75% 75%
Workload 78 100 100 100
Workload 250 220 220 220
Workload 3,800 3,600 3,600 3,600
Workload 115 90 90 90
Workload 18,115 19,000 19,000 19,000
Performance 94% 90% 90% 90%
Workload New 5,000 5,000 5,000
Workload 170 120 120 120
Performance 90% 90% 90% 90%
Workload 356 350 350 350
Workload 75 60 55 55
Workload 30 20 30 30
Workload 10 10 10 10
Workload 325 325 325 325
Workload New 60 60 60
Workload 269 250 250 250
Workload 103 100 100 100
Workload New 60 75 75
Workload New 15 25 25
Workload 1,000 1400 1,200 1,200
Workload 40% 30% 30% 30%
Performance 30% 40% 40% 40%
Workload 5 10 10 10
Workload 850 800 800 800
Performance 25% 25% 25% 25%
Workload New 15% 15% 15%
Workload 1% 1% 1% 1%
Workload 0% 0% 0% 0%
Performance 80% 100% 100% 100%
Community Development

METRICS
Housing
Number of housing units repaired/improved through minor home repair, accessibility modifications, and Rebuilding Together grants Number of offer letters sent to Sellers of FTB and BMR Units Percentage of letters sent to Sellers of FTB and BMR Units within prescribed deadlines Number of San Mateo residents who received services through the City’s Community Funding Program Number of performed annual on-site monitoring visits of housing projects with City inclusionary units Number of BMR and First-Time Buyer Units monitored annually for owner-occupancy Planning
Number of Planning Application submittals
Number of Planning Applications Deemed Complete
Percent of planning application review efficiency - Percentage deemed complete within three review cycles Number of Zoning Administrator Planning Application Decision Letters - ZA level Decision letter prepared Percent of Zoning Administrator Level Planning Application Decision Letters processed within 20 days Number of Building Applications assigned - Building Permit Applications Reviewed by Planning Percent of Building Application plan check reviews processed within 20 business days after assignment to planner Number of Public and Community Outreach Meetings - Planning Applications and Planning Policy items reviewed by City Council Number of Public and Community Outreach Meetings - Planning Applications and Planning Policy items reviewed by Planning Commission Number of Public and Community Outreach Meetings - Community meetings and workshops Number of Neighborhood Meetings - Informal neighborhood meetings held by applicants Community Development
TYPE 2023-24

RESULTS
2024-25

ESTIMATE
2025-26
TARGET
2026-27
TARGET
Performance 20 19 19 19
Workload 4 3 3 3
Workload 100% 100% 100% 100%
Performance 2,773 4,389 4,389 4,389
Workload 19 17 19 19
Workload 400 390 390 390
Workload 80 75 75 75
Performance 50 50 50 50
Performance 80% 80% 80% 80%
Workload 36 40 40 40
Performance 100% 95% 95% 95%
Workload 1,000 1,000 1,000 1,000
Performance 80% 80% 80% 80%
Workload New 6 6 6
Workload New 12 12 12
Workload New 8 12 12
Workload New 50 70 70
Community Development
Finance
Finance
Mission Statement
The Finance Department is responsible for the overall financial management of the City. The Department’s core function is to maintain a strong and secure financial position for the City by providing comprehensive financial and analytical services to the City Council, City management, staff, and the public.

Services and Structure
Operationally, the Finance Department provides the following services:

Accounting and Financial Reporting
Performing the accounting for all of the City’s financial transactions and preparing the Annual Comprehensive Financial Report and all other required annual financial statements.

Budget
Managing the annual operating and capital budget development process, and providing departments with reports and analysis to ensure expenditures are maintained within budgeted appropriations.

Treasury and Revenue Management
Managing the City’s cash and investments to ensure cash requirements are met and return on invested funds is aligned with the City’s investment policy. Administering the business license tax program, monitoring and enforcing collections of other revenue sources, and coordinating the annual update of the Comprehensive Fee Schedule.

Purchasing and Accounts Payable
Administering the purchasing program to ensure purchases are made in compliance with City policy and vendors are paid on time and accurately. Filing all required regulatory and tax-related documentation in a timely manner.

Payroll
Processing bi-weekly payroll for all of the City’s employees, reporting and paying tax obligations, and completing all regulatory reporting requirements.

Debt Service
Managing the City’s debt portfolio to ensure adequate funds are available to make principal, interest, and other debt-related payments in a timely manner; ensuring all continuing disclosure requirements are met; issuing new debt to meet City capital and infrastructure needs; and refunding existing bonds to achieve debt service savings.

FINANCIALS
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
Expenditures by Category
Personnel $ 3,445,580 $ 3,428,137
Operating 725,800 767,800
Indirect & Overhead 343,182 361,688
Total Expenditures $ 4,514,562 $ 4,557,625
Funding Sources
General Funds $ 4,365,774 $ 4,396,466
Special Revenue Funds 72,685 78,821
Enterprise Funds 76,103 82,338
Total Funding Sources $ 4,514,562 $ 4,557,625

FULL TIME EQUIVALENT (FTE) PERSONNEL
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
Finance Director 1.00 1.00
Accountant I/II 2.00 2.00
Accounting Assistant I/II 4.00 4.00
Accounting Manager 1.00 1.00
Budget Manager 1.00 1.00
Deputy Finance Director 1.00 1.00
Finance Specialist I/II 1.00 1.00
Payroll Supervisor 1.00 1.00
Payroll Technician I/II 1.00 1.00
Senior Accountant 2.00 2.00
Senior Accounting Assistant 2.00 2.00
Senior Management Analyst 1.00 1.00
Total Merit 18.00 18.00
Total Per Diem - -
Total Positions 18.00 18.00
Finance

METRICS
The City's annual financial statements receive an unmodified opinion from the external auditors The City's Annual Comprehensive Finance Report receives the Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting
The City's Annual Comprehensive Finance Report is approved by Council by December 31st Number of business license renewals processed
Number of new business licenses issued
Number of employee paychecks issued
Percent of paychecks issued with no customer-facing errors Number of invoices received
Percent of vendor payments made with no errors
Percent of months City's investment portfolio complies with investment policy Average duration of City's investment portfolio
Percent of months yield on the City's investment portfolio meets benchmark performance targets Percent variance between final estimated revenues and actual revenues for major General Fund taxes Percent of purchase orders processed within 3 business days Number of change orders processed in Purchasing
Number of new credit cards issued
Percent variance between budget and actual General Fund expenditures Finance
Finance
TYPE 2023-24

RESULTS
2024-25

ESTIMATE
2025-26
TARGET
2026-27
TARGET
Performance Ye s Y es Ye s Ye s
Performance No Y es Ye s Ye s
Performance No Y es Ye s Ye s
Workload 6,800 7,000 7,000 7,000
Workload 1,100 1,200 1,200 1,300
Workload 17,750 17,820 17,800 18,000
Performance >99% >99% >99% >99%
Workload 11,600 10,000 10,000 10,000
Performance 99% >99% >99% >99%
Performance 100% 100% 100% 100%
Other 528 days 750 days 730 days 520 days
Performance 100% 100% 100% 100%
Performance 1% <5% <5% <5%
Performance 99% >95% >95% >95%
Workload 284 250 260 200
Workload 27 20 22 25
Performance 4% <5% <5% <5%
Human Resources
Human Resources
Mission Statement
The Human Resources Department is responsible for programs in personnel recruitment and selection, classification and position control, labor and employee relations, performance management, employee training and development, salary and benefit administration, workers’ compensation, employment related policies, safety programs, and employee service awards.

Services and Structure
The Human Resources Department focuses on the following areas that support the City’s departments and workforce:

Recruitment, Selection, and Classification / Compensation Directs the City’s recruitment, selection, and retention program, ensuring it meets legal requirements and civil service expectations; oversees the City’s position and vacancy control systems; determines appropriate classifications and compensation for positions; and monitors employee retention for the City.

Employee and Labor Relations
Coordinates the collective bargaining process; ensures contractual changes are implemented; guides performance management, grievance resolution, employee conflict resolution, and administration of the City’s discipline process; and schedules matters before the Personnel Board.

Employee Services / Benefits
Manages the City’s benefit programs, leave of absence, and bilingual program; and directs the City’s automated personnel record keeping system.

Employee Services / Employee Development and Workforce Planning Oversees the Citywide training programs, new hire orientation, and employee recognition program. Develops and conducts professional development initiatives, fosters diversity, and encourages cross-departmental collaboration. Provides resources and expertise in support of departmental workforce planning efforts. Administers the tuition reimbursement program.

Workers’ Compensation
Provides oversight for the third party administrator's management of all claims; monitors compliance with the Americans with Disabilities Act (ADA); oversees administration of the Department of Transportation (DOT) regulations, the City's safety program, and modified duty program.

Human Resources Support to San Mateo Consolidated Fire Department (SMC Fire) Performs human resources activities on a contract basis for SMC Fire as coordinated by an on-site Senior Human Resources Analyst.

FINANCIALS
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
Expenditures by Category
Personnel $ 2,354,848 $ 2,652,593
Operating 5,352,266 4,579,348
Indirect & Overhead 140,583 144,282
Total Expenditures $ 7,847,697 $ 7,376,223
Funding Sources
General Funds $ 2,602,898 $ 2,766,970
Enterpirse Funds - 138,699
Internal Service Funds 5,244,799 4,470,554
Total Funding Sources $ 7,847,697 $ 7,376,223

FULL TIME EQUIVALENT (FTE) PERSONNEL
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
Human Resources Director 1.00 1.00
Deputy Human Resources Director 1.00 1.00
Human Resources Analyst I/II 1.00 1.00
Human Resources Technician* 3.00 4.00
Senior Human Resources Analyst 4.00 4.00
Senior Human Resources Analyst Risk Manager 1.00 1.00
Total Merit 11.00 12.00
Total Per Diem 0.48 0.48
Total Positions 11.48 12.48
* 1.00 FTE HR Technician is a 2 year limited term position.

Human Resources
Human Resources

METRICS
Recruitment, Selection, and Classification
Number of recruitments conducted
Number of weeks from signed Recruitment Plan to Eligibility List Percent of hiring departments rating recruitment as good or better Annual percent of employee turnover rate
Number of classification reviews and job spec updates
Employee and Labor Relations
Percent of employee performance evaluations completed on time Percent of departing merit employees who have an exit interview Percent of disciplinary actions determined within 60 days from completion of investigation Percent of grievances and disciplinary actions resolved within the agency Number of labor contracts negotiated
Number of employees trained on Employee & Labor Relations Employee Services/Benefits
Number of employees attending benefits seminars (EAP, deferred comp, CalPERS) Percent of employees voluntarily participating in a deferred compensation plan Number of benefits orientations conducted during NHO
Number of leave requests processed
Number of Wellness Program events per year
Employee Services/Employee Development & Workforce Planning Number of employee participation in training courses
Percent of participants satisfied with City sponsored training courses Number of employees participating in the Citywide Talent Exchange Number of employees in Lead Worker, Supervisor, & Leadership Academies Number of employees utlizing professional leadership coaching Workers’ Compensation and Safety
Number of claims opened during the fiscal year
Cost of incurred claims
Percent of new hires receiving IIPP training
Support to SMC Fire
Number of recruitments conducted
Percent of disciplinary actions determined within 60 days from completion of investigation Number of workers' compensation indemnity claims opened in the fiscal year Human Resources
TYPE 2023-24

RESULTS
2024-25

ESTIMATE
2025-26
TARGET
2026-27
TARGET
Workload 40 40 65 65
Performance 5 weeks <8 Weeks <8 weeks <8 weeks
Performance 99.50% >90% >90% >90%
Performance 15% <15% <15% <15%
Workload 25 25 45 45
Performance 80% 80% 80% 80%
Workload 80% 80% 80% 80%
Performance 90% 90% 90% 90%
Performance 90% 90% 90% 90%
Workload 5 5 5 5
Workload 40 40 30 30
Performance 115 115 60 60
Performance 80% 80% 80% 80%
Workload 3 3 3 3
Workload 60 60 60 60
Workload 3 3 2 2
Workload 450 450 500 500
Performance 90% 90% 90% 90%
Performance 3 3 2 2
Workload 24 24 24 24
Performance 12 12 12 12
Workload 70 <70 <60 <60
Performance $3.5M <$3.6M <$2.6M <$2.6M
Performance 100% 100% 100% 100%
Workload 5 5 6 5
Performance 90% 90% 90% 90%
Performance / Workload 33 35 30 30
Information
Technology
Information Technology
Mission Statment
The Department of Information Technology (DoIT) works collaboratively with all City departments to deliver the highest quality IT services, infrastructure, and technology consulting possible. DoIT ensures the technologies that are being utilized serve business needs, help staff to be effective and efficient, and can be maintained long term.

Services and Structure
Operationally, DoIT provides the following services:

Consulting and Applications (BusCon)
Works collaboratively with departments to explore evolving business needs, define requirements, and build solutions.

Acts as internal IT consultants, partnering with departments to explore departmental, multi-departmental, and Citywide business needs as they relate to technology. Supports and maintains applications and systems once they are put into production. The BusCon team also provides support for the City’s public Internet web presence, and administers, maintains, and supports the City’s Intranet platform as a collaborative workspace that serves Citywide and individual department operational business needs.

Geographic Information Systems (GIS)
Supports and maintains all GIS systems Citywide and creates GIS and mapping products, including a Police Accountability & Transparency dashboard, elections dashboard, Marina Lagoon dashboard, property information lookup, traffic and transportation improvements, Adopt-A-Drain, and other web maps.

Systems and Networks
Manages the operation, maintenance, and support of all City technology infrastructure and technology assets. Technology infrastructure includes all server-based systems (application hosting, file/data storage, backup), telephone systems, Local Area Network/Wide Area Network (LAN/WAN), and Internet connectivity. Systems and Networks is also the lead for cyber- security protections for the City and administers cloud applications such as Microsoft 365.

Technical Support / Customer Service
Provides end user technology support through our Help Desk. Offers end user technology training resources. The Customer Support team also manages all end points (PCs) and the PC replacement schedule.

FINANCIALS
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
Expenditures by Category
Personnel $ 3,221,750 $ 3,276,096
Operating 1,769,027 1,873,462
Indirect & Overhead 212,121 212,600
Capital Outlay 17,165 17,680
Total Expenditures $ 5,220,063 $ 5,379,838
Funding Sources
General Funds $ 5,086,661 $ 5,245,027
Special Revenue Funds 133,402 134,811
Total Funding Sources $ 5,220,063 $ 5,379,838

FULL TIME EQUIVALENT (FTE) PERSONNEL
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
Information Technology Director 1.00 1.00
Consulting and Applications Manager 1.00 1.00
Custom Service Manager 1.00 1.00
GIS Coordinator 1.00 1.00
GIS Technician I/II 1.00 1.00
IS Support Technician I/II 2.00 2.00
Network Analyst 1.00 1.00
Senior IS Support Technician 1.00 1.00
Senior Systems Analyst - 1.00
Systems Analyst I/II 3.00 2.00
Systems and Network Manager 1.00 1.00
Web Specialist 1.00 1.00
Total Merit 14.00 14.00
Total Per Diem 0.23 0.23
Total Positions 14.23 14.23
Information Technology

METRICS
Percent of Help Desk calls completed within 48 hours or less Number of Help Desk calls annually
Percent of GIS requests completed within agreed upon time and scope Number of GIS requests annually
Composite Score, technology infrastructure reliability
Annual Customer Satisfaction Survey rating
Information Technology
TYPE 2023-24

RESULTS
2024-25

ESTIMATE
2025-26
TARGET
2026-27
TARGET
Performance 97% 90% 90% 90%
Workload 4,294 3,500 3,500 3,500
Performance 99% 90% 90% 90%
Workload 91 75 75 75
Performance 98.84% 99.90% 99.90% 99.90%
Performance 99% 95% 90% 90%
Information Technology
Library
Library
Mission Statement
San Mateo Public Library builds community by inspiring imagination, discovery, and learning.

Services and Structure
The Library Department is organized in the following divisions:

Administrative Services
Oversees the administrative services of the Library, including fiscal operations (budget, payroll, accounting); business contracts; facilities and safety; personnel processes and recordkeeping; meeting room rentals; the Passport Acceptance Office; Library IT and technology support; volunteer program; and supports the City Librarian’s work with the Library Board of Trustees.

Adult-Teen / Information Services
Adult – Teen & Information Services coordinates the delivery of information services; develops collections and programs to meet the needs of a diverse community; cultivates partnerships to leverage the effort to reach a wider audience; instructs library customers on the use of electronic resources and tools; and promotes reading and literacy.

Children’s / Literacy Services
Children’s Services provides library and literacy services to children (infants-8th grade), caregivers, and parents; develops resources that meet diverse needs; provides reader’s advisory service appropriate for reading interests and abilities; and assists students to succeed in school and meet personal learning goals.

Adult Literacy Services (Project Read) provides free, confidential, and goal-directed literacy instruction in small groups or one-on-one tutoring to adults over 16 years of age so that learners can meet their literacy goals and fulfil important roles as family members, workers, and community members.

Circulation / Technical Services
Circulation Services maintains the database of registered users; issues library cards; oversees the lending, maintenance and return of library materials including the technology device lending collection; bills and collects on accounts; oversees operations at Accounts Desks and self-checkout stations; upkeeps the library’s collections; manages reserve/holds operations; maintains and troubleshoots library technologies and systems; and assists with outreach in the community through mobile circulation technology.

Technical Services oversees the acquisition, cataloging, and processing of all library materials (print, media, and periodicals) for all three locations; maintains the library’s collection through repair, preservation, and deaccessioning of library materials that are dated or in poor condition. The division also provides oversight and processing responsibilities of the LINK+ interlibrary loan system.

FINANCIALS
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
Expenditures by Category
Personnel $ 6,514,411 $ 6,560,289
Operating 2,361,363 2,531,484
Indirect & Overhead 885,390 932,676
Total Expenditures $ 9,761,164 $ 10,024,450
Funding Sources
General Funds $ 9,761,164 $ 10,024,450
Total Funding Sources $ 9,761,164 $ 10,024,450

FULL TIME EQUIVALENT (FTE) PERSONNEL
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
City Librarian 1.00 1.00
Administrative Technician 1.00 1.00
Community Services Coordinator 1.50 1.50
Deputy City Librarian 1.00 1.00
Executive Assistant 1.00 1.00
Librarian I/II 9.63 9.63
Library Assistant I/II 9.75 9.75
Library Technology Specialist 1.00 1.00
Literacy Program Coordinator 1.00 1.00
Literacy Specialist 0.63 0.63
Senior Accounting Assistant 1.00 1.00
Senior Library Assistant 3.00 3.00
Senior Management Analyst 1.00 1.00
Supervising Librarian 3.00 3.00
Supervising Library Assistant 1.00 1.00
Total Merit 36.51 36.51
Total Per Diem 17.15 13.23
Total Positions 53.66 49.74
Library
Library

METRICS
Number of non-digital library materials in circulation
Number of digital library materials in circulation
Percent of self-checkout transactions
Number of library patrons receiving technology assistance/instruction Number of participants in library's reading programs
Percent of respondents to Customer Satisfaction Survey who rate library service as excellent or good Number of annual visits by library patrons
Number of patrons served through outreach
Library
TYPE 2023-24

RESULTS
2024-25

ESTIMATE
2025-26
TARGET
2026-27
TARGET
Workload 268,691 270,000 275,000 275,000
Workload 1,526,369 1,600,000 1,600,000 1,600,000
Performance 85% 87% 87% 87%
Workload 10,621 12,000 12,500 13,000
Workload 7,483 7,500 7,600 7,600
Performance 96% 90% 90% 90%
Workload 379,404 385,000 390,000 395,000
Workload 8,039 8,500 9,000 9,000
Parks and
Recreation
Mission Statement
The Parks and Recreation Department’s mission is to enhance the quality of life and strengthen the bonds of community by providing an appropriate mix of safe, well-maintained and well-designed parks, open spaces, and community center facilities that are accessible for all residents; provide enriching leisure opportunities for all age groups; and to preserve and protect the City’s natural resources, including its urban forest, public open spaces, and landscaped medians and islands.

Services and Structure
Operationally, the Parks and Recreation Department provides the following services:

Landscape Resources
Provides for the maintenance and conservation of all parks, open spaces, and public medians and right of ways and ensures the long-term protection of the City’s urban forest through scheduled maintenance activities.

Golf and Visitor Services
Operates Poplar Creek Golf Course and driving range through concessionaire agreements, pro shop services, and food and beverage services. Visitor services provides park ranger presence in parks to promote and support positive user experiences and enforcement of City ordinances.

Park Planning and Development
Provides for park planning, capital improvement program management, project design, and construction management services through the use of both in-house and professional consultant resources.

Administrative Services
Coordinates the department’s administrative and business services that support operational units, thereby maximizing our efficiency and effectiveness in areas such as internal work-flow, customer service, marketing, and budget management.

Recreation and Community Services
Provides a comprehensive program of recreational, instructional, and community-building activities for all age groups utilizing community centers, aquatic facilities, numerous parks and school sites.

Parks and Recreation
Parks and Recreation

FINANCIALS
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
Expenditures by Category
Personnel $ 12,984,517 $ 12,938,837
Operating 8,048,729 8,437,701
Indirect & Overhead 1,996,197 2,117,151
Capital Outlay 161,000 26,000
Total Expenditures $ 23,190,443 $ 23,519,690
Expenditures by Cost Center
Arborist $ 1,341,599 $ 1,356,076
Community Services 10,435,228 10,559,688
Golf Services 2,956,150 3,081,789
Park Planning 452,928 433,392
Parks & Landscapes 7,979,531 8,063,738
Parks & Rec Operations 25,007 25,007
Total Expenditures $ 23,190,443 $ 23,519,690
Funding Sources
General Funds $ 23,150,443 $ 23,519,690
Internal Service Funds 40,000 -
Total Funding Sources $ 23,190,443 $ 23,519,690
Parks and Recreation

FULL TIME EQUIVALENT (FTE) PERSONNEL
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
Parks and Recreation Director 1.00 1.00
Administrative Technician 3.00 3.00
Business Manager 1.00 1.00
Communications and Public Relations Analyst 1.00 1.00
Community Services Coordinator 9.00 9.00
Community Services Manager 1.00 1.00
Community Services Section Manager 2.00 2.00
Community Services Supervisor 7.00 7.00
Custodian 1.00 1.00
Deputy Parks and Recreation Director 1.00 1.00
Golf Course Maintenance Supervisor 1.00 1.00
Golf Equipment Maintenance Specialist 1.00 1.00
Golf Services Manager 1.00 1.00
Irrigation Specialist 2.00 2.00
Landscape Maintenance Worker I/II 15.00 15.00
Lead Teacher 2.00 2.00
Managing Arborist 1.00 1.00
Park and Landscape Maintenance Supervisor 1.00 1.00
Park and Landscape Manager 1.00 1.00
Senior Park Landscape Maintenance Worker 3.00 3.00
Senior Park Ranger 1.00 1.00
Senior Program Assistant 5.00 5.00
Senior Project Manager 1.00 1.00
Tree Maintenance Specialist 1.00 1.00
Total Merit 66.00 66.00
Total Per Diem 50.17 50.17
Total Positions 116.17 116.17
Parks and Recreation

METRICS
Landscape Resources - Parks
We provide environmental stewardship of the City’s park land, civic facilities, medians, islands, and right-of ways.

Number of acres of developed park land, civic facilities, medians, and islands maintained ¹ Cost per acre to maintain developed park land, civic facilities, medians, and islands Percent of maintenance standards met at park land, civic facilities, medians, and islands Percent of park visitors who agree that the park and park landscaping was well maintained Percent of park visitors who reported feeling a high level of safety in our parks Number of acres of developed community parks and neighborhood parks with sports fields Water usage per acre at developed community parks and neighborhood parks ² Percent of maximum labor captured in Cartegraph
Landscape Resources - Trees
We provide environmental stewardship to the City’s street and park trees.

Number of street and park trees maintained
Number of street and park trees pruned annually
Percent of street and park trees pruned annually
Number of new trees planted
Percent of street and park trees removed that are replaced by newly planted trees Number of tree service requests
Percent of tree service requests responded to within 10 working days Golf
We efficiently operate an 18-hole golf course.

Number of golf rounds played annually
Percent of golf tee times utilized
Percent of golf course operating expenses covered by revenues We provide a community resource.

Number of golf course tournaments and clubhouse events facilitated annually Recreation
We provide opportunities for Active and Healthy Lifestyles, Creative Outlets, Creating Community, Y outh Development, and Lifelong Learning.

Number of program registrants
Number of special events attendees
We balance providing affordable recreation and access for all with appropriate cost recovery through user fees.

Percent of programs covering costs within the cost recovery target range Number of unduplicated youth that received fee assistance to attend Recreation programs ¹ Target now includes acreage for medians and islands.
² Water usage is only tracked in those neighborhood parks with significant sports turf on a calendar year.

Parks and Recreation
TYPE 2023-24

RESULTS
2024-25

ESTIMATE
2025-26
TARGET
2026-27
TARGET
Workload 289.7 289.7 289.7 289.7
Performance $ 27,000 $ 28,000 $ 29,000 $ 29,000
Performance 85% 85% 85% 85%
Performance 95% 95% 95% 95%
Performance 95% 95% 95% 95%
Workload 112.9 112.9 112.9 112.9
Performance 484 484 484 484
Performance 70% 70% 70% 70%
Workload 23,600 25,000 25,000 25,000
Performance 2,400 2,400 2,400 2,400
Performance 10% 10% 10% 10%
Workload 150 250 300 300
Performance 110% 125% 150% 150%
Workload 300 300 300 300
Performance 95% 95% 95% 95%
Workload 82,000 82,000 83,000 83,000
Performance 80% 82% 82% 82%
Performance 100% 100% 100% 100%
Workload 325 200 325 350
Workload 24,000 24,250 24,400 24,400
Workload 26,000 26,250 26,400 26,400
Performance 45% 45% 45% 45%
Other 650 675 700 700
Parks and Recreation

METRICS
Recreation (cont.)
We encourage the involvement of youth and create a safe environment for them in our community.

Number of Recreation program registrants who are youth
Percent of Recreation program registrants who are youth Number of youth registrants made water safe through City swim lessons We offer our facilities as a community resource.

Number of public rentals occurring at recreation centers We have happy, satisfied customers.

Percent of course registration occurring online
Parks and Recreation
TYPE 2023-24

RESULTS
2024-25

ESTIMATE
2025-26
TARGET
2026-27
TARGET
Performance 16,000 16,500 17,000 17,000
Performance 65% 65% 65% 65%
Performance 1,000 600 600 600
Workload 500 525 550 550
Performance 92% 92% 93% 93%
Police
Police
Mission Statement
Safeguarding and serving our City with professionalism, integrity and proactive, community-oriented policing is our mission. The men and women of the San Mateo Police
Department are progressive and professional; dedicated
peace keepers, defenders of our community’s quality of
life, and problem solvers protecting our community. We provide a safe and secure quality of life through resolution of issues and problems by aligning community partnerships and resources through ongoing collaborations. We have
a committed, diverse, and outstanding group of men
and women in this department dedicated to providing
outstanding public service.

Accountability, compassion, collaboration, legitimacy,
integrity and respect are our guiding principles as we
provide service while adhering to the highest ethical
standards. The department is dedicated to protecting
with honor and serving with pride. We provide creative, proactive, and long-term solutions to issues that arise, strengthening and securing our neighborhoods. We strive to be the model police agency that others will emulate
and a leader in the county and our profession, adopting creative and innovative strategies to prevent crime and support those most in need. We provide our services
through a trauma-informed restorative justice approach, understanding that many who offend require more than jail to rehabilitate and restore their lives.

The Police Department is committed to improving the
quality of life in our city, by recognizing community needs, forming partnerships, and working with allied agencies
to ensure long-term resolution to crime and disorder
issues. We will continue to do this through cutting-edge technology, creative solutions to problems, by respecting individual rights, conducting fair and non-biased policing, and good, old-fashioned police work.

Services and Structure
The San Mateo Police Department is a 24/7 comprehensive community policing department divided into three primary service units: Field Operations Services; Support Services which includes the Investigations and Y outh Services Units; and Communications, Records and Technology Services.

Field Operations Services Bureau (FOSB)
FOSB provides around-the-clock uniformed police
protection and responds to all requests for police
assistance. Based on a geographic service delivery model, staff are assigned to their patrol beats on a long-term basis so that patrol officers and Area Lieutenants form partnerships with their assigned communities to resolve problems and proactively prevent crime, disorder, and
delinquency.

Field Operations Services includes the following
specialized units:
• The Traffic Unit provides enforcement of traffic
laws, expert collision investigations, and parking
enforcement while meeting our community’s traffic
safety needs. The Traffic Unit collaborates with the
Public Works Department and other allied agencies
to provide a comprehensive approach addressing
the critical factors that contribute to safe streets
(engineering, education, and enforcement) and
formulates Neighborhood Traffic Safety Action Plans
to address neighborhood traffic and parking issues.

The San Mateo Police Department Traffic Unit has fully
committed providing timely and responsive police
services to mitigate the impacts of traffic and parking on our community, and to improve safety on our
roadways for pedestrians, bicycles, and vehicles.
• The Crime Reduction Unit (CRU) is dedicated to the
eradication of violent crime, gang activity, drug activity, and serial crime patterns. CRU provides proactive
targeted enforcement aimed at abating community
crime, problem locations, career criminal offenders,
and organized criminal activity, including human
trafficking and the associated activities that often lead to the victimization of our youth.
• The Downtown Unit serves our downtown and
surrounding areas on foot and bike patrol and is
dedicated to ensuring a safe and vibrant environment
for our business districts. These officers also serve
as a business liaison and support mechanism,
seeking long-term solutions for the chronic homeless,
inebriates, and those with mental illness. They also
work closely with the entertainment and alcohol
businesses in the downtown and other business
districts, regulating and permitting establishments,
while fostering economic development through a safe
environment in San Mateo’s busy downtown.

Police
• FOSB provides special technical on-call units that
include the Special Weapons and Tactics Team
(SWAT), and the Tactical Negotiations Team (TNT).

These special units are staffed on an as-needed basis
and are used in high-risk search and arrest warrant
service, as well as being part of a regional team
responding to critical incidents involving armed and
dangerous subjects.
• FOSB oversees the K-9 program, Field Training
Program, the Behavioral Health and Recovery Services
Mental Health Clinicians, the Homeless Outreach
Team, and provides operational support for the
Department, including the Critical Incident Response
Team and the Peer Support Unit.

Support Services
Support Services Administration Bureau encompasses
two major areas: support and development along with
neighborhood outreach. Bureau operations and personnel
provide personnel hiring and training; accounting and
budgetary functions; facility and equipment maintenance; research, development, and planning; business services; media services; and Internal Affairs and Professional
Standards.

Staff in the Support Services Bureau conduct recruitments to ensure that our highly qualified candidates reflect
the diverse nature of the community we serve; provide
business and fiscal management for the department; and
coordinate and facilitate all departmental training. Our Media Services Unit continues to find innovative ways
to keep our community informed while engaging them
in long-term problem solving strategies and information sharing in their neighborhoods. Our Neighborhood Watch
Program administers over 300 Neighborhood Watch Blocks
dedicated to partnering with their neighborhood Police
Officers to advance safety, security, and community within our neighborhoods. Subscribers to our Community Alert
System and social media outlets currently exceeds 165,000 and continues to increase as we further efforts to enhance community awareness.

Investigations and Y outh Services Bureau
Investigations and Y outh Services conducts major
investigations into crimes against persons, property,
businesses, and institutions. Detectives track and monitor sexual registrants, drug registrants, and early release prisoners placed on Post Released Community Supervision (PRCS). Investigation Services is responsible for covert operations directed toward the apprehension of the most serious and career criminals. Detectives prepare cases for prosecution and develop expertise in specific specialty investigations, including crimes against the elderly,
domestic violence, and high-tech crimes. Our Investigations Services Bureau focuses on special and vulnerable victims of crime, working with service providers to reduce the harm to victims.

Our Y outh Services Unit (YSU), is responsible for oversight of youth programs encompassing a balanced approach
of professionalism, integrity, and excellence. The unit consists of the popular and highly effective San Mateo
Police Activities League (SM PAL), as well as Y outh
Services Officers (YSO). The YSU encompasses crime and
prevention efforts aimed at our youth who are suspects
or victims of crime or gang or bullying efforts. The YSU enacted a trail blazing Diversion Program with a goal of reducing the number of youth introduced into the juvenile justice system. Our Diversion Program is a leader for the County, and has received funding from the County to
regionalize the program and hire counseling for troubled youth and their families, thereby increasing the resiliency and support for these youth to get back on track, stay in school, and out of trouble.

Communications, Records and Technology Services
The Communications, Records and Technology Division
provides outstanding infrastructure to front line operations in all aspects. The division is responsible for providing a high level of customer service while taking and dispatching emergency calls; receiving, processing and storing police records and property in accordance with all applicable
laws; operating computer systems and applications
management; and managing and integrating technology
into police operations.

Staff in the unit provide a highly professional 24 hour emergency communications dispatch center which
receives and dispatches 911 calls and requests for services; maintain accurate police records, property and evidence functions in accordance with all required laws; and manage the implementation and maintenance of department
technology, keeping a vision on the future and a priority on integrating sustainable solutions. The unit is also
responsible for ensuring the ongoing vitality of citywide radio and communications infrastructure.

Police

FINANCIALS
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
Expenditures by Category
Personnel $ 54,896,812 $ 57,313,462
Operating 9,725,419 9,926,267
Indirect & Overhead 968,361 990,552
Capital Outlay 341,000 79,310
Total Expenditures $ 65,931,592 $ 68,309,590
Expenditures by Cost Center
Communications, Records & Technology Admin $ 2,438,748 $ 2,708,544 Crime Reduction Unit 4,073,965 3,540,644
Criminal Investigations 5,093,309 5,902,718
Dispatch 3,588,164 4,473,794
Downtown Security 154,740 785,671
Enrichment Activities 75,303 78,403
Facilities and Overhead 985,751 1,035,494
Field Operations Admin Unit 1,635,117 1,861,996
PAL Life Skills/Leadership 81,831 87,104
Parking Enforcement 1,770,437 1,776,253
Patrol Unit 29,739,173 30,273,733
Police Y outh Services 2,181,981 2,327,781
Prevention/Intervention 132,729 140,894
Program Support 212,056 236,189
Records & Property 1,570,393 1,824,466
Sports Development 79,080 84,746
Support Services Admin 8,433,077 7,586,887
Traffic Unit 3,685,738 3,584,274
Total Expenditures $ 65,931,592 $ 68,309,590
Funding Sources
General Funds $ 63,787,941 $ 66,122,193
Special Revenue Funds 2,143,651 2,187,398
Total Funding Sources $ 65,931,592 $ 68,309,590

FULL TIME EQUIVALENT (FTE) PERSONNEL
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
Chief of Police 1.00 1.00
Administrative Assistant 2.00 2.00
Administrative Technician 1.00 1.00
Business Manager 1.00 1.00
Community Service Officer I/II 5.00 5.00
Crime and Intelligence Analyst 1.00 1.00
Dispatch Services Supervisor 2.00 2.00
Dispatcher 12.00 12.00
Management Analyst I/II 2.00 2.00
Police Captain 2.00 2.00
Police Communications and Public Relations Analyst 1.00 1.00 Police Digital Forensic Specialist 1.00 1.00
Police Evidence Analyst 1.00 1.00
Police Lieutenant 6.00 6.00
Police Officer 90.00 90.00
Police Records Specialist I/II 5.00 5.00
Police Records Supervisor 2.00 2.00
Police Sergeant 17.00 17.00
Police Support Services Analyst 1.00 1.00
Police Technical Services Administrator 1.00 1.00
Senior Business Systems Analyst 1.00 1.00
Senior Community Service Officer 1.00 1.00
Senior Dispatcher 2.00 2.00
Senior Management Analyst 1.00 1.00
Senior Police Records Specialist 2.00 2.00
Vehicle Abatement Officer 2.00 2.00
Total Merit 163.00 163.00
Total Per Diem 12.75 11.96
Total Positions 175.75 174.96
Police
Police

METRICS
Field Operating Services
We take a collaborative approach to address critical factors that contribute to safe streets, and strive to increase safety through implementation of comprehensive Traffic Action Plans conducted in targeted areas based on violations, complaints, and collision data; and seek to mitigate the impact of traffic and parking violations on neighborhoods.

Number of pedestrian or bicycle collisions with motor vehicles Number of drunk driving arrests
Number of Abandoned Vehicle Complaints
Percent of reported abandoned vehicle complaints resolved w/in 5 calendar days Number of parking citations issued
We work to maintain a safe, secure City through smart policing tactics and data driven strategic policing through prevention, intervention, and enforcement.

Number of SMPD calls for service
Number of officer-initiated incidents
Number of reported incidents of violent crime (murder, rape, robbery, aggravated assault) Number of reported incidents of property crime (burglary, motor vehicle theft, auto burglary, larceny, arson) We conduct outreach and intervention to assist those experiencing homelessness, mental health crises, or in need of other social services.

Number of Community Wellness and Crisis Response Team calls for service Number of homeless outreach referrals to services
Support Services
We recruit and conduct background investigations to identify highly qualified candidates for hire to join the Police Department Number of sworn police officers hired
Number of professional staff hired
We offer youth services aimed at providing intervention and diverting juveniles from the Criminal Justice System.

Number of juveniles diverted from the court system to the Y outh Services Division Number of youth participating in Police Activities League prevention/intervention programs We seek to enhance community awareness and engagement through innovative messaging, along with conventional and social media Number of subscribers to the Police Department's Community Alert System and social media Number of media inquiries answered
Number of press releases issued
Number of officer visits to schools and community events Our staff is devoted to protecting with honor and serving with pride by providing ethical and compassionate service to our public.

Survey respondent average rating of overall satisfaction with police services on a scale of 1-5 Police
TYPE 2023-24

RESULTS
2024-25

ESTIMATE
2025-26
TARGET
2026-27
TARGET
Workload 89 80 N/A N/A
Workload 270 250 N/A N/A
Workload 3,530 4,500 N/A N/A
Performance 100% 99% 95% 95%
Workload 60,279 56,000 N/A N/A
Workload 72,677 73,300 N/A N/A
Workload 29,784 28,500 N/A N/A
Workload 753 800 N/A N/A
Workload 1,828 1,950 N/A N/A
Workload 158 150 N/A N/A
Workload 850 700 N/A N/A
Workload 18 10 N/A N/A
Workload 18 12 N/A N/A
Workload 39 70 50 50
Workload 2,982 4,000 4,100 4,200
Other 181,177 187,000 190,000 195,000
Workload 210 225 N/A N/A
Workload 83 100 N/A N/A
Other 58 65 65 70
Performance 4.38 4.37 4.5 4.5

METRICS
Communications, Records and Technology
We strive to quickly respond to all emergencies.

Total 911 calls answered
Number of Priority 1 calls (*reclassified in FY22/23 to exclude 911 hangups) Average response time from dispatch of a Priority 1 call to arrival of responding officer Average answering time from moment call enters system to time it takes to answer Percentage of Priority 1 calls dispatched within 90 seconds of receipt Police
TYPE 2023-24

RESULTS
2024-25

ESTIMATE
2025-26
TARGET
2026-27
TARGET
Performance 29,208 31,100 N/A N/A
Performance 305 320 N/A N/A
Performance 5 min; 22 sec 4 min; 56 sec <7 minutes <7 minutes Performance 99.5% answered w/in
15 seconds

99.4% answered w/in
15 seconds
95% answered w/in 15
seconds
95% answered w/in 15
seconds
Performance 98% 99% 90% 90%
Police
Public Works
Mission Statement
Enhancing the community and its environment by providing sustainable stewardship and innovative approaches to
Public Works services.

Overview
The Public Works Department is separated into two
strategic Sections for optimal performance and
integration - Environmental Services and Engineering
Services. The two Sections work together to meet the
needs of the community.

Services and Structure
Environmental Services Division
The Environmental Services Section is comprised of four main Divisions, including the (1) Wastewater Treatment
Plant, (2) Clean Water Program, (3) Field Maintenance,
and (4) Data Management, with multiple subprograms to
provide specific services for the community.
• Wastewater Treatment Plant (WWTP) includes
the administration, management, operation, and
maintenance of the facility, including laboratory
services. As a sub-regional facility, the WWTP
provides treatment of sanitary sewage to neighboring
communities and is partially owned by Foster City.

The WWTP protects the public health and water
environment of the community by providing high
quality wastewater treatment services in compliance
with the National Pollutant Discharge Elimination
System (NPDES) permit, and Stormwater Pollution
Prevention Program (SWPPP) as required by the State
Industrial General Permit (IGP).
• Clean Water Program is the 10-year, $1 billion program encompassing capital improvements to the sanitary
sewer collection system and WWTP necessary to
replace aging infrastructure, provide wet weather
capacity assurance, meet current and future regulatory
requirements, and align with the City’s sustainability
goals.
• Field Maintenance is comprised of specialized
programs to maintain the City’s streets, sewer
and storm system infrastructure, and flood control
systems. This division provides services, repair, and
maintenance of streets, bridges, sidewalks, bike paths, signs and markings, sewer collection infrastructure,
storm drains, traffic signals, streetlights, and street sweeping.

Public Works
• Data Management is responsible for the development
and administration of the Department’s asset
management platform and Geographic Information
System and for building and maintaining the City’s
infrastructure database.

Engineering Services Division
The Engineering Services Section consists of four main
Divisions, including (1) Engineering, (2) Facilities and Fleet Services, (3) Regulatory Compliance, and (4) Transportation (including Traffic Engineering, Right-of-Way/Permitting, Private Development, and Transportation Planning).
• Engineering provides design and construction
management services for capital improvement
projects to improve the City’s streets, sewer, and storm drain systems. This includes design and construction
to reduce failed streets as identified by the City
Council.
• Facilities and Fleet Services is responsible for
providing centralized maintenance for all City
buildings and park infrastructure. The program is
also responsible for all building and infrastructure
upgrades, remodels, and new building construction. In
addition, it provides implementation and oversight of
the fleet maintenance contractor, who services all City vehicles.
• Regulatory Compliance manages and implements
programs and provides compliance oversight to
meet all regulatory requirements for wastewater,
stormwater, solid waste, and air quality. The division
also provides management of the Marina Lagoon
water quality, dock construction, vegetation
management, and sand replenishment.
• Transportation is responsible for ensuring that the
City’s traffic and transportation infrastructure is
operated safely and efficiently. The program works
on issues at the local and regional levels, performs
studies to identify solutions, evaluates traffic impacts of developments, provides traffic and transportation
related designs for the Capital Improvement Program,
and traffic signal coordination. This division is also
responsible for ensuring improvements in the public
right-of-way and private developments are built to
the appropriate quality standards to ensure a safe,
accessible, and aesthetically pleasing public right-of- way.

Public Works

FINANCIALS
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
Expenditures by Category
Personnel $ 26,350,871 $ 26,277,349
Operating 29,200,845 28,138,888
Indirect & Overhead 3,598,715 3,699,748
Capital Outlay 448,593 1,477,300
Total Expenditures $ 59,599,024 $ 59,593,285
Expenditures by Cost Center
Facilities $ 3,520,978 $ 3,546,324
Fleet 2,662,687 2,699,030
Private Development 1,566,629 1,692,791
Public Works Administrative Services 1,003,567 737,684 Sewer 11,461,172 11,336,946
Solid Waste Management 3,158,939 3,090,970
Storm 2,294,421 2,633,005
Streets 4,412,044 4,007,027
Transportation 6,398,100 5,973,823
Wastewater Treatment Plant 23,120,487 23,875,685
Total Expenditures $ 59,599,024 $ 59,593,285
Funding Sources
General Funds $ 11,958,686 $ 10,016,465
Special Revenue Funds 5,680,580 6,373,298
Enterprise Funds 35,776,093 36,958,168
Internal Service Funds 6,183,665 6,245,353
Total Funding Sources $ 59,599,024 $ 59,593,285
Public Works

FULL TIME EQUIVALENT (FTE) PERSONNEL
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
Public Works Director 1.00 1.00
Administrative Assistant 6.00 6.00
Administrative Technician 2.00 2.00
Associate Engineer 14.00 14.00
Associate Transportation Planner 1.00 1.00
Building Maintenance Supervisor 1.00 1.00
Business Manager 1.00 1.00
Calibration Technician 1.00 1.00
Central Services Worker 1.00 1.00
Construction Inspector I/II 4.00 4.00
Deputy Director 2.00 2.00
Downtown Coordinator 1.00 1.00
Engineering Manager 3.00 3.00
Engineering Technician I/II 6.00 6.00
Environmental Compliance Inspector 3.00 3.00
Environmental Programs Coordinator 1.00 1.00
Executive Assistant 1.00 1.00
Facilities and Fleet Services Manager 1.00 1.00
Facility Maintenance Worker 4.00 4.00
Field Maintenance Manager 1.00 1.00
Fleet Services Supervisor 1.00 1.00
Instrument Control Technician 1.00 1.00
Laboratory Analyst I/II 4.00 4.00
Laboratory Supervisor 1.00 1.00
Laborer 1.00 1.00
Maintenance Planner 2.00 2.00
Maintenance Worker I/II 26.00 26.00
Management Analyst I/II 3.00 3.00
Principal Transportation Planner 1.00 1.00
Project Manager I/II 3.00 3.00
Public Works

FULL TIME EQUIVALENT (FTE) PERSONNEL
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
Public Works Maintenance Leadworker 3.00 3.00
Public Works Supervisor 4.00 4.00
Pump Station Mechanic I/II 3.00 3.00
Pump Station Mechanic III 1.00 1.00
Regulatory Compliance Manager 1.00 1.00
Senior Engineer 7.00 7.00
Senior Facility Maintenance Worker 3.00 3.00
Senior I&C Technician 1.00 1.00
Senior Management Analyst 1.00 1.00
Solid Waste and Recycling Program Coordinator 1.00 1.00 Solid Waste Technician 1.00 1.00
Traffic and Light Technician 2.00 2.00
Traffic Safety Worker 3.00 3.00
WWTP Electrical Technician 2.00 2.00
WWTP Maintenance Superintendent 1.00 1.00
WWTP Manager 1.00 1.00
WWTP Mechanic I/II 6.00 6.00
WWTP Mechanic III 2.00 2.00
WWTP Operations Superintendent 1.00 1.00
WWTP Operator In-Training/I/II 10.00 10.00
WWTP Operator III 5.00 5.00
WWTP Shift Supervisor 2.00 2.00
Waste Management Supervisor 1.00 1.00
Total Merit 160.00 160.00
Total Per Diem 6.04 6.04
Total Positions 166.04 166.04

METRICS
Clean Water Program
Feet of sewer pipe rehabilitated annually
Number of Private Sewer Lateral Program applicants completing sewer lateral replacement Engineering Services - Capital Improvement Program
Citywide Pavement Condition Index (PCI)
Number of street miles in street inventory with PCI 30 or less Engineering Services - Transportation and Private Development Number of planning applications received
Percent of planning applications reviewed within 20 days Number of building permits received
Percent of building permits reviewed within 20 days
Percent of customer satisfaction score of 3 or higher at PW Counter (Scale: 1 - 5, 1 = Not Satisfied 5 = Extremely Satisfied) Facilities
Percent of graffiti removed from City facilities or Right of Way within 48 hours of reporting by contractor Percent of non-emergency rolling fleet that are sustainable Field Maintenance
Number of miles of sewer main cleaned
Percent of sewer pump stations inspected with quarterly preventative maintenance performed Number of sidewalk tripping hazards reported
Percentage of sidewalk tripping hazards addressed within 7 days (patch or barricade) Percent of traffic signals with semi-annual preventive maintenance performed Percent of streetlights with semi-annual preventative maintenance performed Number of Sanitary Sewer Overflows
Regulatory Compliance
Percent of regulatory requirements (reports) completed on schedule Percent trash reduction in storm water
Number of illegal dumping incidents reported
Wastewater Treatment Plant
Percentage of days per year the Wastewater Treatment Plant was in full compliance with water, air, and hazardous materials regulations Number of million gallons of wastewater treated at the City's wastewater treatment plant Cost of treatment at the City's wastewater treatment plant per millions of gallons Public Works
Public Works
TYPE 2023-24

RESULTS
2024-25

ESTIMATE
2025-26
TARGET
2026-27
TARGET
Workload 28,000 28,000 7,000 7,000
Performance 150 100 100 100

Performance 72 73 73 73
Performance 7.86 <5 <5 <5

Workload 110 80 85 90
Performance 70% 80% 80% 80%
Workload 1,200 1,000 1,050 1,100
Performance 85% 85% 85% 85%
Performance 90% 90% 90% 90%

Performance 98% 98% 98% 98%
Performance 45% 47% 55% 65%

Workload 351 285 285 285
Performance 100% 100% 100% 100%
Workload 84 90 90 90
Performance 100% 100% 100% 100%
Performance 50% 100% 100% 100%
Performance 100% 100% 100% 100%
Workload <10  <12 <12 <10

Performance 100% 100% 100% 100%
Performance 90% 98% 100% 100%
Workload 2,809 2,800 2,300 2,300

Performance 100% 100% 100% 100%
Workload 4,000 3,800 3,800 3,800
Workload $ 3,500 $ 3,600 $ 3,600 $ 6,184
Non-Departmental
Non-Departmental

FINANCIALS
2024-25

ADJUSTED
BUDGET
2025-26

PROPOSED
BUDGET
Expenditures by Category
Operating $ 62,876,394 $ 68,243,607
Debt Service 29,127,341 34,758,132
Indirect & Overhead 613,526 647,702
Total Expenditures $ 92,617,261 $ 103,649,441
Funding Sources
General Funds $ 5,007,083 $ 6,121,556
Special Revenue Funds 97,064 127,756
Debt Service Funds 5,896,295 5,900,951
Enterprise Funds 22,520,425 28,537,571
Internal Service Funds 59,096,394 62,961,607
Total Funding Sources $ 92,617,261 $ 103,649,441
Overview
In addition to expenditures that are directly related to departmental operations, there are also significant expenditures that are not directly attributable to the departments. The largest of the non-departmental expenditures is related to our internal services mechanism. To reflect the full cost of operations in departmental budgets, the cost of benefits (medical, dental, pension, etc.) and vehicle/equipment replacement is included in those budgets. To administer these programs in an efficient manner, the actual funds from each department are collected into a series of internal service funds, which consolidate the monies to pay for the benefits and vehicle/equipment replacements. Internal service fund expenses are not included in the total operating budget, as they are already incorporated into each department’s operations.

The second largest non-departmental expenditure reflects the City’s contribution to San Mateo Consolidated Fire Department (SMC Fire), a joint powers authority (JPA) between the City of Belmont, City of Foster City, and City of San Mateo, for fire services. Operations in SMC Fire commenced in January 2019, and in accordance with the JPA, its costs are allocated 20% each to Foster City and Belmont, and 60% to San Mateo. For 2025-26, the City’s contribution amounts to $31.0 million.

The non-departmental budget for 2025-26 also includes $7.7 million in net legacy costs for pension liability, workers’ compensation, and retiree medical related to retirees and former employees from the City’s fire operations that have transferred to SMC Fire. Combined with the contribution to SMC Fire, the City’s cost for fire services totals $38.7 million for 2025-26.

Another large non-departmental expenditure is the payment of debt service. This includes payment for the library general obligation bonds, golf bonds, sewer bonds, lease revenue bonds related to the funding of the police administration building, and lease revenue bonds for street and flood control improvements.

Finally, the General Fund contribution to the Comprehensive Liability Fund is included as part of non-departmental expenditures. The amount for 2025-26 is $4.4 million.

Fund
Information
Introduction
Other Funds
As noted previously, the City of San Mateo’s budget is organized on the basis of the fund accounting system, and each fund is considered a separate budgeting entity. For each fund, there is a ten-year financial plan, a five-year financial plan, or a two-year financial plan provided in this section of the budget document. In addition to the General Fund, whose ten-year plan is included in the Budget Overview section of this budget document, a ten-year plan has been created for the Sewer Enterprise Fund. Unlike the financial statements, which are done on an accrual accounting basis, the ten-year plan for the Sewer Enterprise Fund is done on a cash basis since cash flow is an essential component of the fund’s financial health.

Five-year financial plans have been created for the majority of special revenue funds, and all of the capital and internal service funds. The duration of five years was selected to be able to identify trends beyond the two-year budget cycle but not stretch the forecasting process out as far as was done with the Sewer Enterprise Fund. This duration will be evaluated annually, and if it is determined there is greater value to planning for a longer duration for some or all of these funds, the financial plans will be pushed out to ten years. For the grant special revenue funds, housing special revenue funds, and debt service funds, the financial plans were set at two years due to the nature of the funds themselves. Grant funding is typically evaluated and renewed on an annual basis, so long-term planning for grant funding has somewhat limited value.

Below is a summary table of all other funds and the duration of each fund’s financial plan:

FUND NAME FUND TYPE FINANCIAL PLAN DURATION
Police Grants and Safety Special Revenue 2 Y ears
Solid Waste Special Revenue 5 Y ears
HOME Special Revenue 2 Y ears
Community Development Block Grant Special Revenue 2 Y ears Advance Planning Special Revenue 5 Y ears
Construction Services Special Revenue 5 Y ears
Gas Tax Special Revenue 5 Y ears
City Housing Special Revenue 2 Y ears
Low & Moderate Income Housing Asset Special Revenue 2 Y ears Parks & Recreation Revenue Special Revenue 5 Y ears
Traffic Impact Fee Special Revenue 5 Y ears
Commercial Linkage Fee Special Revenue 5 Y ears
Road Maintenance & Rehabilitation Account Special Revenue 5 Y ears Permanent Local Housing Allocation Special Revenue 2 Y ears Landfill Special Revenue 2 Y ears
Street & Flood Control Projects Bond Debt Service 2 Y ears General Obligation Bonds Debt Service 2 Y ears
2% Hotel Tax Debt Service 5 Y ears
Sewer Enterprise 5 Y ears
Storm Enterprise 5 Y ears
Vehicle & Equipment Replacement Internal Services 5 Y ears Fleet & Building Maintenance Internal Services 5 Y ears Benefits Internal Services 5 Y ears
Dental Internal Services 5 Y ears
Worker's Compensation Insurance Internal Services 5 Y ears Comprehensive Liability Internal Services 5 Y ears
Special Revenue
Police Grants and Safety Fund
Police Grants & Safety Fund 2023-24
Actuals
2024-25
Estimated
Actuals
2025-26
Proposed
Budget
2026-27
Forecast
Beginning Fund Balance 392$ 531$ 557$ 149$ Revenues
Interest Earnings $ 15 $ 6 $ 6 $ 6 Asset Seizure 219 200 - - State Grants 778 841 635 640 Other 181 426 561 333 Total Revenues 1,193$ 1,472$ 1,202$ 979$ Expenditures
Personnel 883$ 863$ 835$ 810$ Operating 78 487 699 297 Capital Outlay 93 97 77 - Total Expenditures 1,054$ 1,447$ 1,610$ 1,107$ Ending Fund Balance 531$ 557$ 149$ 20$ Values are shown in thousands.

The purpose of the Police Grants and Safety Fund is to receive and track all Police Department grant revenue, asset forfeiture revenue, and corresponding expenditures in accordance with prescribed regulations. Revenues for this fund are comprised of state and federal asset forfeiture funds, and grant funds from sources such as the Citizens' Option for Public Safety Program's Supplemental Law Enforcement Services Funds (COPS/SLESF); the State Office of Traffic Safety (OTS) Grant; the State Department of Justice Tobacco Grant Program; and the State Organized Retail Theft (ORT) Prevention Grant Program.

The COPS/SLESF grant was established in 1996. Compliant cities are allocated a proportionate share of COPS funds by the State for the exclusive purpose of funding supplemental front line law enforcement services. Under the standard grant program allocation, the City of San Mateo is eligible to receive a minimum grant amount of $100,000 each year, with additional proportionate shares based on population estimates determined by the California Department of Finance. Funds for this program cannot supplant existing funding and are to be used for personnel and/or equipment. In the 2025-26 budget, proceeds from this grant will cover the cost of two partial traffic officer positions. While the COPS program is intended to be ongoing and permanent, there is no guarantee that continued funding will be available. However, the forecast assumes this fund will remain operating as usual.

The California Office of Traffic Safety (OTS) was created to administer funds and provide grants to both the San Mateo Police Department and regionally to San Mateo County for the purpose of reducing traffic deaths, injuries, and economic losses. Each year, eligible agencies compete for available funds by submitting proposals and although OTS does not have sufficient funds for all submissions, all proposals are reviewed against several criteria, including the potential traffic safety impact, collision statistics, seriousness of identified problems, and performance on previous grants. San Mateo has been a recipient of this grant annually since 1996. In the 2025-26 budget, proceeds from this grant will provide additional resources to combat impaired driving; enforce traffic laws; and conduct sobriety/driver license checkpoints, DUI saturation patrols, and targeted pedestrian/bicycle safety enforcement operations to help achieve the overarching goal of reducing injury traffic collisions.

The 2025-26 budget also reflects expenditures planned as a result of a grant awarded from the California Department of Justice for the Proposition 56 Tobacco Grant Program. This grant funds a Police Officer position focused on anti-vaping/tobacco enforcement, education and outreach activities. The total grant award is $651,800 to be expended over the course of three years. The 2025-2026 fiscal year will be the first full year of this grant award.

The Board of State and Community Corrections Organized Retail Theft (ORT) Prevention Grant Program was established in 2022, with funds designated in the Budget Act of 2022 (Senate Bill 154) as a competitive grant to support law enforcement agencies in preventing and responding to organized retail theft. The San Mateo Police Department collaborated with the Cities of Daly City and San Bruno to successfully apply for a share of these funds, and the City of San Mateo was awarded $1,533,802 to be expended over a three-year term, concluding in Fiscal year 2027. The funds are for a variety of strategies to combat retail theft such as conducting targeted security details, creating workspace/substations near retail, implementing new technologies and other programs.

The financial plan being presented represents the best estimate of grant revenues and the spending plan as of the update of the budget. Each aspect will be monitored and adjustments may be made as necessary to keep the fund's balance positive.

Solid Waste Fund
Solid Waste 2023-24
Actuals
2024-25
Estimated
Actuals
2025-26
Proposed
Budget
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
Beginning Fund Balance 14,160$ 14,423$ 14,597$ 13,477$ 12,858$ 12,167$ 11,402$ Revenues
Interest Earnings 706$ 560$ 160$ 160$ 160$ 160$ 160$ Grants 106 11 60 - - - -
Service Charges 3,431 3,243 3,252 3,286 3,322 3,358 3,396 Other Revenues 50 187 266 272 277 283 289
Total Revenues 4,294$ 4,001$ 3,738$ 3,718$ 3,759$ 3,802$ 3,845$ Expenditures
Personnel 1,764$ 2,108$ 2,158$ 2,222$ 2,287$ 2,355$ 2,425$ Operating 1,534 1,413 1,747 1,783 1,820 1,859 1,898
Indirect and Overhead Charges 291 305 313 323 332 342 351 Capital Outlay 4 - 641 10 10 10 10
Total Expenditures 3,593$ 3,827$ 4,858$ 4,337$ 4,450$ 4,566$ 4,685$ Transfer Out 437$ -$ -$ -$ -$ -$ -$
Ending Fund Balance 14,423$ 14,597$ 13,477$ 12,858$ 12,167$ 11,402$ 10,563$ Values are shown in thousands.

The Solid Waste Fund accounts for garbage collection surcharge revenues, which are restricted by City ordinance to be used for street cleaning and waste management. The street cleaning aspect of this fund consists of keeping 204 curb miles of streets swept, as well as cleaning andmaintaining City-owned parking lots. The waste management aspect of this fund involves the coordination and oversight of a range of programs and activities that provide the community with solid waste and recycling services.

Included in the service charges is $150,000 per year that the fund receives through the garbage collection provider for capital improvements related to the trash load reduction requirements of the Municipal Regional Plan issued by the Regional Quality Control Board. Fund balance has accumulated in this fund as expenditures have been lower than expected over the past several years. Going forward, services for street cleaning and waste management will continue to be evaluated to ensure that the level of support being provided is sufficient. Service charges will continue to be evaluated andadjusted as necessary to ensure alignment with expected expenditures and appropriate reserve levels.

HOME Fund
HOME Fund 2023-24
Actuals
2024-25
Estimated
Actuals
2025-26
Proposed
Budget
2026-27
Forecast
Beginning Fund Balance 403$ 483$ 497$ 502$ Revenues
Loan Payments $ 82 $ 15 $ 15 $ 15 Total Revenues 82$ 15$ 15$ 15$ Expenditures
Personnel 1$ 1$ -$ -$ Operating -$ -$ 10$ 10$ Total Expenditures 1$ 1$ 10$ 10$ Ending Fund Balance 483$ 497$ 502$ 507$ Values are shown in thousands.

The HOME Investment Partnership (HOME) Program is a federal grant used to assist rental and homeownership housing opportunities for households up to 60-80% of the median income. The City received an annual HOME grant from 1994 to 2016. The fund now includes program income from loan repayments from loans funded with HOME monies in the past.

The program income from prior HOME loans will continue to be collected, and potential projects will be identified as the fundbalance reaches an appropriate level.

Accumulated resources fund HOME-eligible uses, such as new construction of housing, acquisition and rehabilitation of existing buildings, and down payment assistance.

Community Development Block Grant Fund
CDBG Fund 2023-24
Actuals
2024-25
Estimated
Actuals
2025-26
Proposed
Budget
2026-27
Forecast
Beginning Fund Balance 405$ 391$ 549$ 185$ Revenues
Intergovernmental Contributions $ 181 $ 754 $ 732 $ 754 Loan Payments 22 8 8 8 Total Revenues 204$ 762$ 740$ 762$ Expenditures
Personnel 45$ 25$ 8$ 28$ Operating 155 342 461 364 Indirect & Overhead 18 19 19 20 Total Expenditures 218$ 385$ 487$ 412$ Transfer Out -$ 219$ 617$ 617$ Ending Fund Balance 391$ 549$ 185$ (82)$ Values are shown in thousands.

The Community Development Block Grant (CDBG) Program is a federal grant from the Departmentof Housing and Urban Development (HUD) that provides flexible funding for community development projects and programs to assist lower income neighborhoods and households up to 80% of the median income. San Mateo has participated in this program since 1977. The fund consists of draws against the grant letter of credit, as well as program income from loan repayments from loans funded with CDBG in the past. The letter of credit consists of prior year unexpended funds in addition to the annual grant. These funds are held by HUD and drawn down on a reimbursement basis to the City.

For the next two years, CDBG funds will be used for Community Funding grants to local social service agencies who serve lowerincome residents, facility repairs for local service agencies, minor home repairs to lower income homeowners, pedestrian and bike improvementsin North Shoreview and North Central neighborhoods, and program administration.

Advance Planning Fund
Advance Planning 2023-24
Actuals
2024-25
Estimated
Actuals
2025-26
Proposed
Budget
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
Beginning Fund Balance 5,105$ 5,841$ 6,071$ 5,764$ 5,284$ 4,497$ 3,661$ Revenues
Interest Earnings $ 255 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 General Plan Maintenance Fee 1,744 1,000 1,700 1,500 1,500 1,500 1,500 State Grants 369 95 250 360 100 100 100 Total Revenues 2,368$ 1,195$ 2,050$ 1,960$ 1,700$ 1,700$ 1,700$ Expenditures
Personnel 637$ 956$ 1,381$ 1,439$ 1,482$ 1,526$ 1,571$ Operating 865 653 835 856 856 856 856 Indirect and Overhead Charges 130 137 141 145 150 154 159 Total Expenditures 1,632$ 1,745$ 2,357$ 2,440$ 2,487$ 2,536$ 2,586$ Ending Fund Balance 5,841$ 5,291$ 5,764$ 5,284$ 4,497$ 3,661$ 2,775$ Values are shown in thousands.

The Advance Planning Fund accounts for the General Plan maintenance fee collected through building permits and expenditures for activities related to preparing long- term plans and policy documents for the physical and economic development of the City, including the General Plan update.These plans and policies are used for the evaluation of development projects and determining priorities for public improvements.

Prior to 2021-2022, the Community Development Department increased the General Plan maintenance fee to account for the costs associated with several long-range planning efforts the City needs to complete. Advance Planning staff continues to monitor passage and implementation of new State legislation, the next iteration of the Sustainable Communities Strategy (Plan Bay Area) by the Association of Bay Area Governments and Metropolitan Transportation Commission, completing near- term Zoning Code Amendments, preparation and adoption of the General Plan Update, creation of objective design standards for residential development, and implementation of general planning, zoning, and policy recommendations as directed by the City Council. In future cycles, theimplementation of the General Plan Update and revision of the City’s various specific plans and zoning code will be funded by the Advance Planning Fund.

Construction Services Fund
Construction Services 2023-24
Actuals
2024-25
Estimated
Actuals
2025-26
Proposed
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
Beginning Fund Balance 32,628$ 26,934$ 26,519$ 20,559$ 16,146$ 12,973$ 11,053$ Revenues
Interest Earnings $ 1,609 $ 1,080 $ 450 $ 450 $ 450 $ 450 $ 450 Plan Check Fees 4,632 4,177 3,606 4,147 4,769 5,484 6,307 Permit Fees 4,868 6,099 4,886 5,618 6,461 7,430 8,545 Other Fees 533 553 526 605 696 800 920 Total Revenues 11,642$ 11,909$ 9,468$ 10,820$ 12,376$ 14,165$ 16,222$ Expenditures
Personnel 7,730$ 8,617$ 10,335$ 10,643$ 10,961$ 11,288$ 11,626$ Operating 2,404 1,187 2,660 2,201 2,101 2,208 2,330 Indirect & Overhead 1,402 1,470 1,513 1,588 1,667 1,749 1,836 Total Expenditures 11,536$ 11,274$ 14,507$ 14,433$ 14,729$ 15,245$ 15,792$ Transfer Out 5,800$ 1,050$ 920$ 800$ 820$ 840$ 860$ Ending Fund Balance 26,934$ 26,519$ 20,559$ 16,146$ 12,973$ 11,053$ 10,623$ Values are shown in thousands.

The Construction Services Fund accounts for building permit revenues and expenditures for activities related to the review ofprivate development projects to achieve high quality and long-term economic growth in the City. Building Division staff members also ensure that new construction meets established standards for health and safety, accessibility, energy efficiency, and provide public education to enhance the safety of existing buildingsand better awareness of building codes.

Over the last several years, fund balance has grown significantly. Revenue in this fund is for services to be provided over time, and therefore, the significant fund balance will be needed over time to provide services for existing projects in process. While revenues in the five-year plan are expected to remain stable in the near term, service demand is expected to remain high to fully process existing projects. This is reflected in the ending fund balance being drawn upon over the course of the five-year plan.

Beginning in 2019-20, lease payments through a transfer out have been made to the General Fund for space occupied by construction services staff in City Hall.

Additionally, a number of funding commitments were made to transfer out to the Capital Improvement Projects Fund to support the digital storage of property records and electronic review of plans submittals, the traffic model update, and facilities improvements.

Gas Tax Fund
Gas Tax 2023-24
Actuals
2024-25
Estimated
Actuals
2025-26
Proposed
Budget
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
Beginning Fund Balance 1,268$ 1,768$ 2,884$ 2,973$ 3,122$ 3,334$ 3,608$ Revenues
State Gas Tax $ 1,931 $ 2,039 $ 2,059 $ 2,100 $ 2,142 $ 2,184 $ 2,228 Gas Tax In Lieu of Prop 42 962 1,004 990 1,010 1,030 1,051 1,072 Interest Earnings 66 40 40 40 40 40 40 Total Revenues 2,959$ 3,084$ 3,089$ 3,150$ 3,212$ 3,275$ 3,340$ Transfer Out 2,458$ 1,968$ 3,001$ 3,001$ 3,001$ 3,001$ 3,001$ Ending Fund Balance 1,768$ 2,884$ 2,973$ 3,122$ 3,334$ 3,608$ 3,948$ Values are shown in thousands.

The Gas Tax Fund accounts for gasoline tax revenues that are utilized for street-related operating and capital costs. The fund makes an annual transfer to the General Fund to partially offset eligible operating costs related to the City's streets and roads maintenance programs. Additionally, it makes annual contributions to the Capital Improvement Projects Fund to fund various capital improvement projects.

California's gas tax is calculated on a per-gallon basis, not as a percentage of the fuel price. This means taxpayers pay a fixed amount in tax for every gallon purchased, regardless of fluctuations in fuel prices.

While fuel consumption has declined in recent years due to post-COVID hybrid work patterns, gas tax revenues have remained relatively stable thanks to scheduled rate increases tied to inflation. According to estimates from the State Department of Finance (DOF), the City anticipates receiving $3.1 million in gas tax revenues in both FY 2024-25 and FY 2025-26.

The five-year plan maintains the annual transfer to the General Fund, and makes contributions to the Capital Improvement Projects Fund to fund street reconstruction and rehabilitation projects. As more information becomes available on the impacts to gasoline tax revenues, this plan will be updated accordingly.

City Housing Fund
City Housing Fund 2023-24
Actuals
2024-25
Estimated
Actuals
2025-26
Proposed
Budget
2026-27
Forecast
Beginning Fund Balance 966$ 1,198$ 1,444$ 1,256$ Revenues
Housing Fees $ - $ 50 $ 50 $ 50 Interest Earnings - - - - Miscellaneous 232 211 16 116 Total Revenues 232$ 261$ 66$ 166$ Expenditures
Contribution to Other Agencies -$ 15$ 47$ 45$ Contribution to First Time Home Buyers - - 180 180 Operating - - 27 11 Total Expenditures -$ 15$ 254$ 236$ Ending Fund Balance 1,198$ 1,444$ 1,256$ 1,186$ Values are shown in thousands.

The City Housing Fund captures a variety of housing-related revenues, including loan repayments from the defunct federal Rental Rehabilitation Program, a pro rata share of the original homebuyer loans at the Meadow Court housing complex, fees collected for housing loan subordination requests, and the fractional Below Market Rate (BMR) program in lieu fees.

This fund can be used to assist housing-related projects when the fund balance is sufficient and appropriate projects are identified. For the next two years, funds are set aside to assist first-time homebuyers on purchasing housing units that the City has acquired in order to retain their below market rate status. Additionally, funds will be used to pay for the City membership fee for The Housing Endowment and Regional Trust of San Mateo County (HEART), thecountywide housing trust fund, and for revisions to the City's BMR documents.

Low and Moderate Income Housing Asset Fund
Low and Moderate Income Housing Asset 2023-24
Actuals
2024-25
Estimated
Actuals
2025-26
Proposed
Budget
2026-27
Forecast
Beginning Fund Balance 4,712$ 5,135$ 5,351$ 5,275$ Revenues
Interest Earnings $ 163 $ 75 $ 77 $ 80 Loan Payments 302 214 214 215 Total Revenues 464$ 289$ 291$ 295$ Expenditures
Personnel 35$ 51$ 47$ 124$ Operating 5 23 320 244 Total Expenditures 41$ 74$ 367$ 368$ Ending Fund Balance 5,135$ 5,351$ 5,275$ 5,202$ Vales are shown in thousands.

The Low and Moderate Income Housing Asset Fund consists of loan payments, lease payments, sale of property, and any other revenue generated from loans or assets held by the City as Housing Successor to the former Redevelopment Agency. State law regulates the use of these funds to support housing projects that assist households whose income ranges up to 80% of median income. The fund also consists ofadministrative costs to monitor existing housing projects, manage the existing loan portfolio, support homelss programs, and plan for new projects.

Parks and Recreation Revenue Fund
Parks and Recreation Revenue Fund 2023-24
Actuals
2024-25
Estimated
Actuals
2025-26
Proposed
Budget
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
Beginning Fund Balance 12,286$ 19,442$ 3,780$ 6,203$ 7,121$ 4,389$ 6,156$ Revenues
Interest Earnings $ 729 $ 187 $ 187 $ 187 $ 187 $ 187 $ 187 P&R Tax and Fees 7,477 265 4,505 2,700 2,700 2,700 2,700 Total Revenues 8,206$ 452$ 4,692$ 2,887$ 2,887$ 2,887$ 2,887$ Expenditures
Operating 17$ 18$ 18$ 19$ 19$ 20$ 21$ Total Expenditures 17$ 18$ 18$ 19$ 19$ 20$ 21$ Transfer Out 1,033$ 16,097$ 2,250$ 1,950$ 5,600$ 1,100$ 2,000$ Ending Fund Balance 19,442$ 3,780$ 6,203$ 7,121$ 4,389$ 6,156$ 7,023$ Values are shown in thousands.

The Parks and Recreation Revenue Fund accounts for parks and recreation tax, park impact fees, and park in-lieu fees. Revenue projections are based on residential building projects, and are thus dependent on development activity. Accumulated resources in this fund are utilized to fund parks and recreation related projects through a transfer to the Capital Improvement Projects Fund.

Major transfers planned for 2025-26 include a contribution to the Central Park Master Plan. Transfers planned beyond 2025-26 include citywide play area improvements, a downtown dog park, and repairs to the Japanese Garden. If the estimated fees do not come to fruition, we willnot be able to transfer as much as planned to the Capital Improvement Projects Fund. We will adjust our plan in the future years to align spending with funding capacity.

Traffic Impact Fee Fund
Traffic Impact Fee 2023-24
Actuals
2024-25
Estimated
Actuals
2025-26
Proposed
Budget
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
Beginning Fund Balance 316$ 56$ (2,653)$ (2,153)$ (1,563)$ (589)$ (452)$ Revenues
Interest Earnings 15$ -$ -$ -$ -$ -$ -$ Traffic Impact Fees 773 2,428 1,350 1,440 1,824 286 2,895 Total Revenues 788$ 2,428$ 1,350$ 1,440$ 1,824$ 286$ 2,895$ Transfer Out 1,047$ 5,137$ 850$ 850$ 850$ 150$ 150$ Ending Fund Balance 56$ (2,653)$ (2,153)$ (1,563)$ (589)$ (452)$ 2,293$ Values shown in thousands.

The Traffic Impact Fee Fund accounts for revenues that are collected to fund various capital projects to mitigate the trafficrelated cumulative impacts of new development. Revenues from this fund have contributed to traffic calming projects, construction costs of new traffic signals, and infrustructure projects such as the 25th Ave. Grade Separation Project, which was completed in 2021, and the Railroad Avenue Wall Enhancement project. In the five-year Capital Improvement Plan, transfers are being made to fund bicycle projects and the Citywide Traffic Calming project.

Since the Traffic Impact Fees are closely related to the status of new development projects, this revenue source is difficultto project. If the funding projections do not come to fruition, the capital improvement projects programmed to be funded out of this revenue source will be reviewed and evaluated for proper funding and adjustments will have to be made in the out years of this five-year forecast.

Commercial Linkage Fee Fund
Commercial Linkage Fee 2023-24
Actuals
2024-25
Estimated
Actuals
2025-26
Proposed
Budget
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
Beginning Fund Balance 3,246$ 3,405$ (550)$ 1,959$ 6,469$ 11,478$ 11,987$ Revenues
Interest Earnings $ 164 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 Commercial Linkage Fee - - 2,500 4,500 5,000 500 500 Total Revenues 164$ 50$ 2,550$ 4,550$ 5,050$ 550$ 550$ Expenditures
Operating 5$ 5$ 40$ 41$ 41$ 41$ 41$ Total Expenditures 5$ 5$ 40$ 41$ 41$ 41$ 41$ Transfer Out -$ 4,000$ -$ -$ -$ -$ -$ Ending Fund Balance 3,405$ (550)$ 1,959$ 6,469$ 11,478$ 11,987$ 12,496$ Values shown in thousands.

The Commercial Linkage Fee is an assessment on new commercial developments to address the impacts of new job creation on housing availability and affordability for workers. Developers pay a fee based on square footage of new commercial space depending on type of use: office, retail, or hotel. The funds are to be used for housing programs to assist workers who make up to 120% of the area median income. Examples of housing programs can include acquisition, rehabilitation, or new construction of housing.

The fund balance is being accumulated over the period of this forecast. Potential projects will be identified as the fund balance reaches an appropriate level.

Accumulated resources will be utilized to fund projects through a transfer to the Capital Improvement Projects Fund, and thisplan will be updated accordingly.

Road Maintenance and Rehabilitation Account
Road Maintenance and
Rehabilitation Account
2023-24
Actuals
2024-25
Estimated
Actuals
2025-26
Proposed
Budget
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
Beginning Fund Balance 4,611$ 7,493$ 1,805$ 2,013$ 2,312$ 2,708$ 3,205$ Revenues
Road Maint. and Rehabilitation 2,729$ 2,764$ 2,863$ 2,949$ 3,038$ 3,129$ 3,223$ Interest Earnings 250 146 45 50 58 68 80 Total Revenues 2,979$ 2,910$ 2,908$ 2,999$ 3,096$ 3,197$ 3,303$ Transfer Out 98$ 8,598$ 2,700$ 2,700$ 2,700$ 2,700$ 2,700$ Ending Fund Balance 7,493$ 1,805$ 2,013$ 2,312$ 2,708$ 3,205$ 3,807$ Values are shown in thousands.

The Road Maintenance and Rehabilitation Account (RMRA) Fund was created in 2020- 21. It accounts for transportation taxes established by the Road Repair and Accountability Act of 2017 (SB 1). Prior to 2020- 21, RMRA revenues were deposited in the Gas Tax Fund, and then subsequently transferred to the Capital Improvement Projects Fund to fund eligible projects. Moving this revenue source into its own special revenue fund creates greater visibility to available resources for projects and will allo w for more efficient reporting on how these funds are being utilized.

Based on the State Department of Finance (DOF) estimates, staff anticipates that the RMRA revenues will be approximately $2.9 million for FY 2025-26. Accumulated resources from the RMRA revenues will be utilized to fund street reconstruction and rehabilitation projects through a transfer to the Capital Improvement Projects (CIP) Fund. In the five -year plan, the annual transfers to CIP are estimated at $2.7 million each year.

Permanent Local Housing Allocation Fund
PERMANENT LOCAL HOUSING ALLOCATION FUND 2023-24
Actuals
2024-25
Estimated
Actuals
2025-26
Proposed
Budget
2025-26
Forecast
Beginning Fund Balance 3$ 10$ 10$ 10$ Revenues
Interest Earnings $ 7 $ - $ - $ - State Grants 305 293 225 300
Total Revenues 312$ 293$ 225$ 300$ Expenditures
Personnel 27$ 15$ 9$ 15$ Operating 278$ 278$ 216$ 285$ Total Expenditures 305$ 293$ 225$ 300$ Ending Fund Balance 10$ 10$ 10$ 10$ Values are shown in thousands.

The Permanent Local Housing Allocation (PLHA) is a State Grant that is provided to the City, starting in Fall 2020, that willcontinue on an annual basis based on actual State receipts of document recording fees. These funds are flexible as long as they are used for housing-related projects and programs that assist in addressing the unmet housing needs of San Mateo.

The fund supports four programs to support housing security and availability in the City: an emergency shelter, a homesharingprogram, supportive services at the Montara affordable housing development, and a rapid rehousing program.

Landfill Fund
LANDFILL 2023-24
Actuals
2024-25
Estimated
Actuals
2025-26
Proposed
Budget
2026-27
Forecast
Beginning Fund Balance 3,954$ 4,490$ 4,496$ 3,955$
Revenues
Interest Earnings $ 210 $ 80 $ 80 $ 80
Garbage Collection Surcharge 450 600 600 600
Total Revenues 660$ 680$ 680$ 680$
Expenditures
Personnel 33$ 45$ 45$ 47$
Operating 55 98 56 61
Total Expenditures 88$ 143$ 101$ 108$
Transfer Out $ 36 $ 530 $ 1,120 $ -
Ending Fund Balance 4,490$ 4,496$ 3,955$ 4,527$
Values are shown in thousands.

The Landfill Fund was initially set up as a debt service fund to account for debt service payments for the landfill revenue bond s. Since the landfill bonds have been paid off, starting in fiscal year 2024-25, the Landfill Fund has been reclassiflied to a special revenue fund. Surcharge revenues collected will be reviewed and adjusted in future years to reflect the reduction of the debt service obligation.

The Landfill Fund will continue to maintain a fund balance that is sufficient to meet the City's landfill closure and post -closure obligations.

Debt Service
Street & Flood Control Project Bond
STREET & FLOOD CONTROL PROJECTS BOND 2023-24
Actuals
2024-25
Estimated
Actuals
2025-26
Proposed
Budget
2026-27
Forecast
Beginning Fund Balance 14$ 30$ 30$ 26$ Revenues
Interest Earnings $ 16 $ 5 $ 5 $ 5 Total Revenues 16$ 5$ 5$ 5$ Expenditures
Operating 63$ 65$ 67$ 67$ Debt Service 2,629 2,629 2,632 2,633 Total Expenditures 2,692$ 2,695$ 2,699$ 2,700$ Transfer In 2,692$ 2,690$ 2,690$ 2,690$ Ending Fund Balance 30$ 30$ 26$ 21$ Values are shown in thousands.

The City has two debt service funds: the Street and Flood Control Projects Bond Fund and the General Obligation Bonds Fund.

The Street and Flood Control Projects Bond Fund is a debt service fund that accounts for debt service payments on lease revenue bonds issued in 2020 to finance the street and flood control improvement projects. As these improvements are part of the Measure S initiatives, revenues from Measure S are transferred into this fund to administer the debt services. Additionally, a benefit assessment district was created in the North Shoreview neighborhood as it relates to the flood control improvements. Assessment levies are collected to pay part of the annual debt. The remaining debt service is funded by the Measure S.

General Obligation Bonds
GENERAL OBLIGATION BONDS 2023-24
Actuals
2024-25
Estimated
Actuals
2025-26
Proposed
Budget
2026-27
Forecast
Beginning Fund Balance 6,647$ 7,562$ 7,040$ 6,493$ Revenues
Interest Earnings $ 298 $ 120 $ 120 $ 120 Property Taxes 2,725 1,482 1,470 1,590 Total Revenues 3,023$ 1,602$ 1,590$ 1,710$ Expenditures
Operating $ 60 $ 62 $ 65 $ 68 Debt Service 2,049 2,062 2,072 2,065 Total Expenditures 2,109$ 2,124$ 2,136$ 2,133$ Ending Fund Balance 7,562$ 7,040$ 6,493$ 6,070$ Values are shown in thousands.

The General Obligation Bonds Fund accounts for voter-approved property tax revenues and debt service payments on the City's general obligation bonds that were utilized to finance the construction, acquisition, and improvement of a new main library and the improvement of the City's branch libraries.

Other debt of the City is housed directly in the applicable operating and capital funds, with payments for debt service listed as a line item in the financial plans.

The City is bound by a provision in state law limiting the indebtedness for California cities to 15% of the assessed value ofall real and personal property of the city.

Based on the current fiscal year's total assessed value of $36 billion, San Mateo's legal debt limit was $5.4 billion, only at 0.30% of its legal debt limit. This statutory limitations applies only to bonded indebtedness of the City payable from proceeds of taxes levied on a property. For San Mateo, this includes only the general obligation bonds.
2% Hotel Tax Fund
2% Hotel Tax 2023-24
Actuals
2024-25
Estimated
Actuals
2025-26
Proposed
Budget
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
Beginning Fund Balance 259$ 179$ 257$ 249$ 214$ 167$ 108$ Revenues
Interest Earnings 14$ 2$ 2$ 2$ 2$ 2$ 2$ Transient Occupancy Tax 888 625 637 650 662 675 688 Total Revenues 901$ 626$ 639$ 652$ 664$ 677$ 690$ Expenditures
Operating 145$ 76$ 138$ 141$ 146$ 151$ 156$ Debt Service 836 822 860 895 915 935 955 Total Expenditures 981$ 898$ 998$ 1,036$ 1,061$ 1,086$ 1,111$ Transfer In -$ 350$ 350$ 350$ 350$ 350$ 350$ Ending Fund Balance 179$ 257$ 249$ 214$ 167$ 108$ 38$ Values are shown in thousands.

The 2% Hotel Tax Fund accounts for the Measure C voter-approved 2% hotel tax revenue, the related transfers to the Capital Improvement Program Fund, and the debt service on the variable rate bonds that were utilized to partially fund the police administration facility.

Due to the closure of a major hotel in May 2024, we have adjusted the revenue projections. Hotel taxes are expected to decrease from $1.0 million to $0.5 million by the end of fiscal year 2024-25 with moderate growth in the following years. Additionally, rising interest costs from variable rate bonds pose further challenges.

Consequently, ongoing support from the General Fund, approximately $350,000 annually, will be required to maintain a positivefund balance.

Enterprise
Storm Water Fund
Storm Enterprise
2024-25
Estimated
Actuals
2025-26
Proposed
Budget
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
Beginning Fund Balance -$ 1,737$ 1,229$ 3,735$ 6,767$ 9,989$ Revenues
Charges for Services $ 4,000 $ 4,096 $ 4,219 $ 4,346 $ 4,476 $ 4,610 Interest Earnings 50 120 20 70 140 200 Total Revenues 4,050$ 4,216$ 4,239$ 4,416$ 4,616$ 4,810$ Expenditures
Personnel 281$ 375$ 385$ 395$ 405$ 416$ Operating 231 300 273 279 279 279 Capital - 650 25 10 10 10 Total Expenditures 513$ 1,324$ 683$ 684$ 694$ 705$ Transfer Out 1,800$ 3,400$ 1,050$ 700$ 700$ 700$ Ending Fund Balance 1,737$ 1,229$ 3,735$ 6,767$ 9,989$ 13,394$ Values are shown in thousands.

The City of San Mateo operates and maintains a stormwater system, which providesvital services to safeguard neighborhoods from flooding and protects local waterways from pollution. The system consists of complex infrastructure including surface drains, underground pipes and conduits, pump stations, creeks and channels, and the Marina Lagoon. The City's stormwater system requires improvements to address flood control capacity limitations and deficiencies related to aging infrastructure, enhanced operations and maintenance, and improvements to minimize pollutants in stormwater runoff as required by state and federal mandates.

In January 2024, the Community Flood and Storm Protection Fee Ballot Measure was approved by property owners. This measure allows the City Council to levy the Stormwater Fees starting in FY 2024-25, providing an estimated $4.0 million in the first fiscal year. The fees may be adjusted annually by the Consumer Price Index (CPI) up to 3%, subject to annual approval by the City Council.

Additionally, the City aims to complete the Stormwater Master Plan by the end of calendar year 2025. This plan will assess the current state of our stormwater system, recommend improvements, and prioritize projects and resources based on their urgency. The Master Plan will also assess the costs of capital projects and help establish a cash flow forecast to plan for financing the necessary capital improvements to ourstormwater infrastructure. Once the plan is finalized, staff will update the budget accordingly to incorporate the new work plans.

Internal Services
Vehicle and Equipment Replacement
Vehicle and Equipment Replacement 2023-24
Actuals
2024-25
Estimated
Actuals
2025-26
Proposed
Budget
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
Beginning Fund Balance 18,769$ 18,126$ 18,495$ 8,494$ 8,547$ 10,500$ 8,456$ Revenues
Interest Earnings 598$ 318$ 370$ 170$ 171$ 210$ 169$ Interfund Replacement Collection 1,897 1,844 1,839 1,862 1,918 1,976 2,035 Other Revenues 77 5 - - - - - Total Revenues 2,572$ 2,166$ 2,209$ 2,032$ 2,089$ 2,186$ 2,204$ Expenses
Vehicle Replacement 10$ 429$ 4,469$ 1,272$ 143$ 2,541$ 700$ Computer Replacement 1,191 365 22 36 121 191 904 Radio Replacement - - 673 - - - - Major Equipment Replacement 233 83 6,655 282 282 1,909 578 Other Capital Outlay & Depreciation 1,278 34 - - - - - Total Expenses 2,711$ 912$ 11,820$ 1,590$ 546$ 4,640$ 2,183$ Transfer In 410$ 410$ 410$ 410$ 410$ 410$ 410$ Transfer Out 914$ 1,296$ 800$ 800$ -$ -$ -$ Ending Fund Balance 18,126$ 18,495$ 8,494$ 8,547$ 10,500$ 8,456$ 8,888$ Reserve for Major Building Component Replacemen 2,460$ 2,870$ 3,280$ 3,690$ 4,100$ 4,510$ 4,920$ Remaining Fund Balance 15,666$ 15,625$ 5,214$ 4,857$ 6,400$ 3,946$ 3,968$ Values are shown in thousands.

The Vehicle and Equipment Replacement Fund accounts for charges to user departments to fund the replacement of vehicles and equipment. This includes vehicles, computers, radios, furniture, and other major equipment. Funds for future replacement are collected while vehicles and equipment are in service so that when it is time for replacement, adequate funds are available. Accumulated fund balance in this fund is estimated to be over $8 million at the end of fiscal year 2025-26. Unlike the Fleet and Building Maintenance Fund, which is entirely an operating fund and doesn't require a significant fund balance, the Vehicle and Equipment Replacement Fund should have a significant fund balance by nature. Because of that, funds will accumulate over time for replacement.

This fund collects annually from the operating departments, so it is also important that the amount of available fund balanceconsiders this. To that end, a long-term spending plan is an important tool for managing this type of fund. Understanding spending needs over the short- and long-term and factoring in fund balance allows the City to set a collection amount that ensures funding is available when vehicles and equipment need to be replaced, but does not maintain such a large fund balance that creates an unneccesary burden on the other funds, particularly the General Fund. This five-year plan captures the long-term spending plans for each of the replacement categories, and sets future collections to ensure funding for replacements is available and fund balance is set at an appropriate level.

The five-year plan further captures a portion of the fund balance that is reserved for major building component replacements. Since 2017-18, the General Fund has transferred $410,000 each year to this reserve and in 2022-23, the Sewer Fund contributed $294,000. As the reserve balance reaches an appropriate level and major building replacement projects are identified, the accumulated funds will be utilized to fund the projects through a transfer to the Capital Projects Fund, and this plan will be updated accordingly.

Fleet and Building Maintenance
Fleet and Building Maintenance 2023-24
Actuals
2024-25
Estimated
Actuals
2025-26
Proposed
Budget
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
Beginning Fund Balance 838$ 196$ 649$ 544$ 599$ 818$ 1,213$ Revenues
Charges to Dept. - Building 3,566$ 3,566$ 3,816$ 4,045$ 4,247$ 4,459$ 4,682$ Charges to Dept. - Fleet 1,846 2,205 2,317 2,456 2,579 2,708 2,844 Other Revenues 6 8 8 8 8 8 8 Total Revenues 5,418$ 5,779$ 6,140$ 6,508$ 6,834$ 7,175$ 7,533$ Expenses
Personnel 1,698$ 1,718$ 2,265$ 2,310$ 2,357$ 2,404$ 2,452$ Operating 3,911 3,136 3,495 3,643 3,743 3,846 3,952 Indirect & Overhead 452 471 485 500 515 530 546 Total Expenses 6,061$ 5,325$ 6,245$ 6,453$ 6,614$ 6,780$ 6,950$ Ending Fund Balance 196$ 649$ 544$ 599$ 818$ 1,213$ 1,796$ Values are shown in thousands.

The Fleet and Building Maintenance Fund accounts for charges to user departments and the related expenses for maintaining City vehicles and facilities. This fund is primarily operational, with vehicle and equipment replacement costs tracked separately in a dedicated internal service fund. As such, charges to user departments should be set to closely match anticipated expenses, and there is generally no need to maintain a large fund balance. In recent years, expenses have outpaced revenues, prompting a gradual increase in departmental charges to ensure the fund remains financially stable and maintains an appropriate level of reserves.

Benefits Fund
Benefits 2023-24
Actuals
2024-25
Estimated
Actuals
2025-26
Proposed
Budget
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
Beginning Fund Balance 554$ 1,084$ (297)$ (36)$ 265$ 606$ 992$ Revenues
Internal Service Charge - Pension 27,421$ 29,313$ 23,868$ 25,470$ 26,800$ 29,450$ 30,150$ Internal Service Charge - Social Security/Medicare 3,575 3,476 4,147 4,271 4,399 4,531 4,667 Internal Service Charge - Healthcare 9,321 10,861 10,911 11,641 12,354 13,140 13,909 Internal Service Charge - Severance Trust 1,327 1,513 1,352 1,420 1,491 1,566 1,644 Internal Service Charge - Other 2,873 2,897 3,268 3,327 3,387 3,448 3,510 Total Revenues 44,516$ 48,060$ 43,545$ 46,129$ 48,431$ 52,135$ 53,881$ Expenses
Pension 27,417$ 30,987$ 23,868$ 25,470$ 26,800$ 29,450$ 30,150$ Social Security/Medicare 3,575 3,476 4,147 4,271 4,399 4,531 4,667 Healthcare 9,247 11,186 10,830 11,560 12,273 13,059 13,828 Severance Trust 1,045 1,101 1,273 1,298 1,324 1,350 1,377 Other 2,702 2,690 3,166 3,229 3,293 3,359 3,426 Total Expenses 43,986$ 49,441$ 43,284$ 45,828$ 48,090$ 51,749$ 53,449$ Ending Fund Balance 1,084$ (297)$ (36)$ 265$ 606$ 992$ 1,424$ Values are shown in thousands.

The Benefits Fund accounts for the collection of funds from operating departments to cover the cost of employee benefits. The expenses covered by this fund include pension, social security/medicare, retiree healthcare, the City's payment for medical premiums for active employees, funding for the severance trust (to pay for the cashout of unused vacation to employees who retire or otherwise leave the City), as well as a few other benefit costs, such as life insurance and long-term disability insurance. In some cases, the cost of providing these benefits is known and collections can be set accordingly. For example, the normal cost of pensions is set as a percentage of pay, so collections can be set based on that percentage of pay. In other cases, such as for the funding of the severance trust, the cost is an estimate based on historical actuals, but will fluctuate annually based on different factors. Thus, to accommodate the fluctuation of expenses like those related to the severance trust, the fund should maintain some level of fund balance. To that end, collections for the various components of this fund have been set to collect costs to fund the programs adequately while maintaining a level of fund balance that allows for the year-over-year fluctuations without requiring a transfer from the General Fund.

The largest expense category in this fund is related to pension expenses. As discussed in detail in the Budget Overview section of the budget document, pension expenses are expected to increase significantly over the next five to seven years as the result of a number of factors. Theseincreases will continue to put pressure on the operating funds, as a larger and larger percentage of the budget will be required to cover pension cost increases.

After the transfer of the City's fire operations to SMC Fire in 2018-19, with the exception of the Bureau of Fire Protection and Life Safety (Bureau), what remains as the City's responsibility is the former fire department employees' unfunded pension liability and retiree health benefits, asthose costs are attributable to years of service to the City. These legacy costs are transferred from the General Fund and administered through this fund. Bureau activities are designed to be full cost recovery, so with the transition to SMC Fire, legacy pension costs for former Bureau personnel are the responsibility of SMC Fire.

Fund balance was at a low of $1.1 million at the end of fiscal year 2023-24. Staff has adjusted the collection rates for the following years in the the five-year plan. The long-term forecast has the fund building back up its fund balance gradually. Actual expenses will be analyzed over time and annual collections will be adjusted accordingly.

Dental Fund
Dental 2023-24
Actuals
2024-25
Estimated
Actuals
2025-26
Proposed
Budget
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
Beginning Fund Balance 999$ 935$ 999$ 923$ 837$ 740$ 632$ Revenues
Internal Service Charges 752$ 784$ 779$ 802$ 826$ 851$ 877$ Total Revenues 752$ 784$ 779$ 802$ 826$ 851$ 877$ Expenses
Insurance Premiums 816$ 720$ 855$ 888$ 923$ 959$ 997$ Total Expenses 816$ 720$ 855$ 888$ 923$ 959$ 997$ Ending Fund Balance 935$ 999$ 923$ 837$ 740$ 632$ 512$ Values are shown in thousands.

The Dental Self-Insurance Fund accounts for the City's self-insurance activities related to the dental plan the City provides its employees. Collections for this fund are made by charging departments a flat amount for each employee. Expenses in this fund consist almost entirely of the premiums the City pays on behalf of its employees for dental coverage. As actual expenses are analyzed over time, annual collections amounts will be adjusted accordingly.

Workers' Compensation Insurance Fund
Workers' Compensation Insurance 2023-24
Actuals
2024-25
Estimated
Actuals
2025-26
Proposed
Budget
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
Beginning Fund Balance 6,391$ 7,595$ 6,539$ 4,968$ 3,309$ 1,593$ 1,317$ Revenues
Interest Earnings 979$ 400$ 400$ 400$ 400$ 400$ 400$ Internal Service Charges 4,383 4,299 2,500 2,500 2,500 4,000 4,250 Total Revenues 5,363$ 4,699$ 2,900$ 2,900$ 2,900$ 4,400$ 4,650$ Expenses
Personnel 403$ 439$ 441$ 454$ 467$ 481$ 495$ Operating 637 693 1,403 1,474 1,514 1,556 1,599 Claims 1,243 2,500 2,500 2,500 2,500 2,500 2,500 Indirect Costs 117 123 127 131 135 139 143 Acturial Adjustment 1,758 - - - - - - Total Expenses 4,159$ 3,755$ 4,471$ 4,559$ 4,616$ 4,676$ 4,737$ Transfer Out -$ 2,000$ -$ -$ -$ -$ -$ Ending Fund Balance 7,595$ 6,539$ 4,968$ 3,309$ 1,593$ 1,317$ 1,230$ Values are shown in thousands.

The Workers' Compensation Insurance Fund accounts for all workers' compensation self-insurance activities. This includes the cost of claims, insurance, legal and other professional services, and program administration. The total cost of claims constitutes the largest expense in this fund. Workers' compensation expenses can fluctuate significantly year-over-year based on the total cost of claims, which includes any adjustments to the total liability of the fund due to actuarially-determined changes in experience. Over the past 10 years, total expenses (excluding acturial accounting adjustment) have been as high as $4.3 million and as low as $1.6 million.

Funding for the Workers' Compensation Insurance Fund comes from collections from all of the operations across all funds that include personnel. Departments are charged a percentage of pay for each employee, and the amount of the charge depends on the type of employee. Positions that historically have higher workers' compensation experience, such as sworn-in police employees, are charged a higher rate than positions with historically lower experience. Collections from departments are set in an effort to ensure adequate funding for this program, including having funds set aside in reserve to cover years where claims expenses are unusually high.

In 2019-20, the fund received a $3.5 million transfer from the General Fund to prevent the fund from going further into a negative balance. However, based on the latest actuarial study, this General Fund support is no longer needed. As such, the excess $1.5 million was transferred out to support the Comprehensive Liability Fund in fiscal year 2021-22, and the remaining $2.0 million was transferred out to the Comprehensive Liability Fund in 2024-25.

When the City transferred its fire operations to San Mateo Consolidated Fire Department (SMC Fire), the department established itsown Worker's Compensation Fund.

However, claims that were incurred while the Fire employees were City employees will remain in this fund and continue to be the City'sresponsiblility, with the exception of former Fire personnel that served in the Bureau of Fire Protection and Life Safety (Bureau), as it is a cost recovery program. While SMC Fire has paid the City for the present value of former Bureau legacy workers' compensation, which reflects open claims and claims that have been closed since SMC Fire commencement of operations, updated analysis and cost assignment may be needed as updated actuarial studies are performed in subsequent fiscal years. To that end, the City will prepare an annual analysis to 1) compare actuarial assumptions to the current actuarial study, including the discount rate orcost of healthcare, 2) evaluate new claims if the City is assigned proportional responsiblity.

Comprehensive Liability Insurance Fund
Comprehensive Liability Insurance 2023-24
Actuals
2024-25
Estimated
Actuals
2025-26
Proposed
Budget
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
Beginning Fund Balance (12,057)$ (2,423)$ (974)$ (958)$ (1,017)$ (1,006)$ (975)$ Revenues
Interfund Charges 2,793$ 3,700$ 5,200$ 5,980$ 6,578$ 6,907$ 7,252$ Investment/Interest Earnings 72 - - - - - - Misc. Revenues 2 - - - - - - Total Revenues 2,866$ 3,700$ 5,200$ 5,980$ 6,578$ 6,907$ 7,252$ Expenses
Personnel 149$ 208$ 194$ 200$ 206$ 212$ 218$ Insurance Premiums 2,300 3,109 4,100 4,920 5,412 5,683 5,967 Claims 1,118 200 250 250 250 250 250 Attorney's Fees 910 906 430 452 475 500 525 Other Costs 325 249 210 217 224 231 238 Actuarial Adjustment (10,570) (321) - - - - - Total Expenses (5,768)$ 4,350$ 5,184$ 6,039$ 6,567$ 6,876$ 7,198$ Transfer In 1,000$ 2,100$ -$ -$ -$ -$ -$ Ending Fund Balance (2,423)$ (974)$ (958)$ (1,017)$ (1,006)$ (975)$ (921)$ Values are shown in thousands.

The Comprehensive Liability Insurance Fund accounts for the City's general liability program. Expenses in this fund primarily consist of insurance premiums, the cost of claims, legal and other professional services, and program administration.

For FY 2025-26, this program is budgeted at $5.2 million, an increased of $1.1. million from the prior year, primarily due to rising insurance premiums. Over the past ten years, the City's general liability insurance premium has increased by an average 23% annually, rising from $0.6 million in FY 2016-17 to the projected $4.1 million in 2025-26. If this trend continues, insurance premiums could reach $6.0 ~ $7.0 million by 2029-30, pushing the total program costs beyond $8.0 million annually.

Although interfund charges (cost recovery revenues) have been increased, more is needed to cover future costs. As indicated in the five-year forecast, the fund is projected to end fiscal year 2025-26 with a negative fund.

To help stabilize the fund, the City redirected $3.5 million in one-time General Fund support that was originally allocated to the Workers’ Compensation Fund (Fund 870). Based on the latest actuarial report, those funds were no longer needed in Fund 870 and therefore were transferred to the Comprehensive Liability Fund (Fund 880), $1.5 million in FY 2023-24 and $2.0 million in FY 2024-25.

The California public entity insurance marketplace has been changing dramatically in recent years, and public agencies throughout the state are seeing a significant increase in plaintiff demands and high dollar liability claims. Areas of concern include wildfires, dangerous conditions, road design, intersections, sidewalks, and public safety services. Future insurance costs will be determined by the loss run experience for the City’s General Liability Program. It is anticipatedthat insurance premiums will remain high for the next few years before any reduction is seen.

Five- Year Capital
Improvement Program
CIP Summary
As part of the Capital Improvement Program (CIP) budget process, departments develop project requests that capture the five-year capital project needs. Total project costs are developed, and funding sources are identified where possible. For capital projects that have been completed, any related ongoing operation or maintenance costs are included in the respective operating budgets. New and ongoing capital projects are prioritized and recommended for funding based on a review and analysis by a committee made up of the City Manager, Assistant City Manager, Public Works Director, Parks and Recreation Director, and Finance Director.

Sections 65400, 65401, and 65403 of the California Planning and Land Use Government Code require the City’s governing body, planning, or public works commission to review public works projects proposed for the fiscal year to determine conformity with the adopted General Plan. The City Council reviews the Capital Improvement Program Budget at a study session annually in April, with the full five-year CIP program presented as part of the overall budget adoption process in June. During these meetings, the Council reviews the City’s five-year CIP recommendations, which are listed in the schedules that follow this narrative, to determine if the proposed capital projects are in conformance with the goals, policies, and actions contained within the General Plan.

The five-year CIP totals $270.0 million, with $61.5 million for 2025-26. Immediately following this narrative is a list of all the capital projects funded in the 2025-30 CIP (“Funded Projects”). In addition, the table below summarizes the five-year CIP by type of capital projects.

CAPITAL PROJECTS
2025-26

PROPOSED
BUDGET
2026-27
PLAN
2027-28
PLAN
2028-29
PLAN
2029-30
PLAN
5-Year
TOTAL
Bikeway/Pedestrian $ 4,098,820 $ 5,563,636 $ 1,575,000 $ 865,000 $ 865,000 $ 12,967,456 Bridges 75,000 75,000 75,000 - - 225,000 Facilities 5,878,742 4,310,000 3,360,000 4,010,000 6,575,000 24,133,742 Parks 6,391,822 2,695,000 6,345,000 1,845,000 2,625,000 19,901,822 Sanitary Sewer and
Wastewater
Management
29,089,000 28,996,805 37,544,930 25,384,035 31,311,652 152,326,422 Stormwater 250,000 1,050,000 700,000 700,000 700,000 3,400,000 Street Lights 700,000 1,000,000 - - - 1,700,000 Streets 9,240,473 8,818,000 9,003,000 8,203,000 8,203,000 43,467,473 Traffic 1,325,000 550,000 350,000 1,050,000 350,000 3,625,000 Other City Capital
Projects 4,492,000 1,002,000 927,000 927,000 927,000 8,275,000 Total $ 61,540,856 $ 54,060,441 $ 59,879,930 $ 42,984,035 $ 51,556,652 $270,021,914 Of the total $270.0 million, $152.3 million (56.4% of the total five-year CIP) is for Clean Water Program capital projects, all of which are funded by sewer service charges, bond and loan proceeds, and capital payments from the sewer system’s subregional customers and the City of Foster City. More details of this significant infrastructure investment are provided in the following section. Street rehabilitation/reconstruction and transportation projects total $61.8 million (22.9% of the total five-year CIP), while parks-related projects amount to $19.9 million (7.4% of the total).

CIP Summary
Wastewater Capital Improvement Projects
The Sewer Enterprise system consists of the City’s sewer collection system and wastewater treatment plant (WWTP) facilities serving the residents and businesses of the City, all of Foster City, the Crystal Springs County Sanitation District (CSCSD), and portions of the neighboring communities (subregional customers) of the Town Hillsborough, City of Belmont, and certain unincorporated areas of San Mateo County. The current population in the utility’s service area is approximately 150,000 residents. There are approximately 28,500 customer accounts in the City and approximately 11,000 customer accounts in Foster City and the subregional customer communities utilizing the WWTP.

Significant Sewer Infrastructure Needs and the Cease and Desist Order Similar to many wastewater systems in the region, the City’s Sewer Enterprise infrastructure is aging and in need of significant rehabilitation and upgrade. The City’s sewer collection system dates back to the early 1900s, with the majority of sewer pipes installed in the 1940s through 1960s. The original structures at the WWTP were constructed in 1937. The City’s collection system has challenges with infiltration and inflow through leaky pipes and illegal drain connections. During significant rain events, flow into the sewer pipes increases, exceeding the capacity of the sewer collection system and WWTP. These conditions result in overflows of diluted and untreated sewage onto streets and into storm drains, which eventually reaches the City’s local waterways and San Francisco Bay. These events are termed sanitary sewer overflows (SSOs).

Due to past incidents of SSOs into the City’s local waterways and San Francisco Bay, the San Francisco Bay Regional Water Quality Control Board (Regional Board) issued a Cease and Desist Order (CDO) in 2009, mandating the City to implement measures to reduce and prevent SSOs. The National Pollutant Discharge Elimination System permit for the WWTP also requires the City to ensure full treatment at the WWTP of all effluent and eliminate “blending” practices.

In December 2014, the City established the Clean Water Program to address the Regional Board’s CDO and comply with Wastewater Treatment Plant operation permit requirements. The Clean Water Program is a 10-year, approximately $1 billion, comprehensive capital improvement plan to address the needs for both the collection system and the WWTP. These improvements are focused on replacing aging infrastructure, providing wet weather capacity assurance, meeting current and anticipated future regulatory requirements, and aligning with the City’s sustainability goals. The City’s Sewer Enterprise continues to invest in its capital and operating budgets for staff and consultant engineering services to execute the Clean Water Program improvements.

The Clean Water Program’s largest capital improvement project is the WWTP Upgrade and Expansion project, building new treatment facilities that increase capacity, ensure full treatment of effluent, and eliminate blending practices. As of August 2020, all three phases of the WWTP Upgrade and Expansion construction contract were awarded. The first phase is for excavation and site preparation, the second phase is to build the foundation, and the third phase is to construct the facilities. The project is anticipated to be completed by Summer 2026.

CIP Summary
The largest collection system capital improvement project is the Basins 2 & 3 Collection System Improvements project, which includes the Underground Flow Equalization System (UFES) project. The UFES project consists of an underground 5.3-million-gallon structure that provides in-stream storage capacity to help eliminate SSOs in San Mateo and comply with the CDO. The special use permit and the project environmental impact report were approved in October 2019. The construction contract was awarded in May 2020 and final completion of the project is anticipated in 2025.

Sewer Capital Project Revenues
The City is utilizing a number of funding and financing options for the Clean Water Program. These include federal Water Infrastructure Finance and Innovation Act (WIFIA) loan funds, State Revolving Fund (SRF) loan funds, revenue bonds, direct funding from sewer fees, and capital contributions from Foster City/Estero Municipal Improvement District (EMID) and the subregional customers. Sewer fees will pay the debt service on these various financing mechanisms.

The City, through the San Mateo – Foster City Public Financing Authority (Authority) with Foster City/Estero Municipal Improvement District (EMID), has received significant funding through SRF and WIFIA loans for the wastewater treatment plant upgrade and expansion project. In November 2020, the Authority finalized a WIFIA loan for the WWTP for $277 million and in December 2020, the City finalized a second WIFIA loan for its Basins 2 and 3 Collection System Improvement project for $85 million. An SRF loan of $137 million was finalized in early May 2022. The City’s efforts to pursue and execute these low interest loan agreements resulted in hundreds of millions of dollars in savings to the ratepayers.

Sewer Capital Projects and Costs
Of the total $270.0 million planned over the next five years, four capital projects are planned for the City’s WWTP totaling an estimated $80.0 million. The largest planned WWTP project is $44.2 million for the WWTP Annual Repairs project, followed by $25.0 million for the WWTP Upgrade and Expansion project, and $10.9 million for annual major components.

Sewer collection system improvements total an estimated $72.3 million, with ten different capital projects throughout the City. The largest sewer collection system project is $34.7 million for the Annual Sanitary Sewer Rehabilitation project, followed by $22.0 million for Sanitary Sewer Pump Station Upgrades and $12.5 million for the TMDL (Total Maximum Daily Load) Enhanced Planning and Infrastructure Improvements.

Street Rehabilitation and Improvement Capital Projects
A total of $43.5 million in street rehabilitation, reconstruction, and improvement projects are included in the five- year CIP. Primary funding sources for these projects include Road Maintenance and Rehabilitation Account Fund ($13.5 million), Measure A countywide half-cent sales tax ($12.9 million), Gas Tax ($6.0 million), Measure W countywide half-cent sales tax ($4.3 million), Measure S local quarter-cent sales tax ($4.0 million), Measure M countywide vehicle license fee revenue ($1.8 million), and Street and Flood Control Bonds ($0.5 million).

CIP Summary
The City’s Pavement Management Program (PMP) uses available funding to minimize deferred maintenance, reduce the failed streets inventory, and maintain the City’s streets with a Pavement Condition Index (PCI) above 70. While the PMP focuses on the management of the City’s entire pavement assets, a separate Smooth Streets Program (SSP) was created in 2013 to address a specific set of failed streets. Street segments with a PCI of less than 25 are considered “failed” by common industry practice, and generally require expensive, full street reconstruction to restore. Of the 17 miles identified as failed streets and five miles identified as at-risk,

15.7 miles have been restored and 3.6 miles are currently in construction. The remaining 2.7 miles of failed streets/at-risk streets in the Smooth Streets Program are currently scheduled for completion by the end of calendar year 2026.

City Building and Facilities Improvement Capital Projects Many City facilities are aging and facing significant upgrade needs. In the five-y ear CIP plan, a total of $24.1 million is planned for various building facilities improvements and new construction. Of th is total, $2.5 million is added to complete the Marina Library Branch modernization and structure improvement project; $3 .0 million is for roof replacement and improvements, $7.0 million of this total is for waterproofing, painting, and structural improvements, and $6.0 million is for interior improvements at various City facilities. Additional projects include fence and picnic area improvements, play court resurfacing, and paving and resurfacing at the Corporation Yard and various recreation centers.

Bridge Maintenance and Improvement Capital Projects
Of the total $0.2 million planned over the next five years for bridge-r elated capital improvements, $75,000 is planned for the Gateway Park Pedestrian Bridge Improvements project and $150,000 is for citywide bridge maintenance.

Parks and Recreation Facilities Renovation & Rehabilitation Capital Projects A total of $19.9 million in parks and recreation capital improvement projects are planned for the next five years.

Of the total planned, the largest parks project is $4.7 million programmed to upgrade citywide park play areas.

Additional funding planned for parks and recreation projects includes $2.7 million for the improvements at the Joinville Pool, $2.3 million for the replacement of playground equipment at City parks, and $2.2 million for improvements to the Laurelwood Park playground.

Of the $19.9 million total of planned projects, the majority ($12.9 million) are funded from parks and r ecreation- related taxes and fees. The City has received significant parks and recreation-r elated taxes and fees from the development projects currently underway in the City, which has allowed for the capacity to program the large projects in the five-year CIP.

CIP Summary
Stormwater / Flood Control Renovation & Rehabilitation Capital Projects A total of $3.4 million is planned for storm drainage and flood control projects for the next five years. Projects in this category include $1.6 million for the Green Stormwater Infrastructure Program, $1.3 million for the recurring work under the Storm System Minor Repair project, and $1.1 million for storm system dredging. Due to change of project design and scope of work, unused funds from certain stormwater projects have been released to support other projects. Staff is updating the City’s Storm Drain Master Plan in 2025, which will identify and prioritize capital improvement needs that will be programmed into future five-y ear Capital Improvement Program budgets.

Once the master plan is complete, a financing plan will be developed to fund the priority projects.

Bikeway / Pedestrian Walkway Capital Projects
A total of $13.0 million is planned for bikeway and pedestrian walkway projects. Of the total, notable project requests include $4.8 million is planned for the Fashion Island Class IV bike lane, $2.3 million is for the Bike San Mateo Program, $2.3 million is for pedestrian, street and bike infrastructure from Community Development Block Grant (CDBG) funding, $1.5 million is for the Delaware Safe Routes to School Corridor project, and $1.0 is for the Citywide Safe Routes to School Program.

Traffic Capital Projects
A total of $3.6 million is planned for congestion management and neighborhood traffic r equests. Of this amount, the larger projects include $0.9 million, $0.7 million, and $0.5 million for two traffic signal projects at the intersections of Alameda De Las Pulgas/Barneson, Peninsula/Delaware, and Hillsdale/Alameda, respectively, $0.8 million is for citywide traffic calming, and $0.4 million for neighborhood traffic management.

The primary funding sources for these traffic-r elated projects are Measure A ($1.6 million), traffic impact fees ($0.8 million), Measure CC ($0.7 million), Measure S ($0.4 million), and Gas Tax ($0.3 million).

Streetlights Capital Projects
The High Voltage Streetlight Conversion project replaces approximately 450 existing high voltage streetlights with lower voltage, LED streetlights. The project has been implemented in phases and is expected to be completed in 2026. This entire project is funded by the General Fund with $1.7 million in funding planned during the five-year CIP.

Other City Capital Projects
Various other citywide capital projects are planned, totaling $8.3 million over the next five years. Of this amount, the largest projects include $2.3 million for childcare facilities and $1.3 million for electronic and digital services improvements for the Community Development Department.

CIP Summary
C
IP Funding
All the projects listed in the following “Funded Projects” sub-section have identified sources of funding. The reports following separate the funded projects by category and by funding source.

T
he City also has many capital projects that have no identified source of funding. The “Unfunded Projects” sub- section lists all the identified projects that have no funding allocated and their estimated total costs. These unfunded capital projects have high-level cost estimates that would need to be further refined at the point of becoming a funded project with a total estimated cost $ 352.0 million. The size and scope of the projects varies and includes major construction projects, such as $50.0 million for Central Park Improvements Phases 2-4, $32 million for a new Central Park Parking Garage and $20 million for the 2nd and El Camino Parking Garage, $26 million for a new corporation yard facility, $20 million for the renovation of the King Resiliency Center, and $11 million for a new Fire Station #27, and other various projects including 31 projects from the Bike Master Plan totaling $13.1 million and six projects associated with storm catchment area improvements totaling $56.5 million.

CIP Projects by Category
CIP Projects by Category

PROJECT NAME
2025-26

PROPOSED
BUDGET
2026-27
PLAN
2027-28
PLAN
2028-29
PLAN
2029-30
PLAN
5-YEAR
TOTAL
Bikeway/Pedestrian
101/92 MULTI-MODAL (FASHION ISLAND CLASS IV BIKE LANE) 831,819$ 3,988,636$ -$ -$ -$ 4,820,455$ BIKE SAN MATEO PROGRAM 902,000 700,000 700,000 - - 2,302,000 CDBG PROJECTS 450,000 450,000 450,000 450,000 450,000 2,250,000 CITYWIDE BICYCLE PARKING - 10,000 10,000 - - 20,000
CITYWIDE SAFE ROUTES TO SCHOOL PROGRAM 200,000 200,000 200,000 200,000 200,000 1,000,000 CITYWIDE SIDEWALK REPAIR PROGRAM 115,000 115,000 115,000 115,000 115,000 575,000 DELAWARE SAFE ROUTES TO SCHOOL CORRIDOR 1,500,000 - - - - 1,500,000 QUICK BUILD MOBILITY PROGRAM 100,000 100,000 100,000 100,000 100,000 500,000 Bikeway/Pedestrian Total 4,098,819$ 5,563,636$ 1,575,000$ 865,000$ 865,000$ 12,967,455$ Bridges -
CITYWIDE BRIDGE MAINTENANCE -$ 75,000$ 75,000$ -$ -$ 150,000$ GATEWAY PARK PEDESTRIAN BRIDGE IMPROVEMENTS 75,000 - - - - 75,000 Bridges Total 75,000$ 75,000$ 75,000$ -$ -$ 225,000$ Facilities -
ADA COMPLIANCE AND TRANSITION PLANNING 250,000$ 35,000$ 35,000$ 35,000$ -$ 355,000$ ADA ENTRY COMPLIANCE - BERESFORD 18,766 - - - - 18,766 CHILDCARE FACILITY IMPROVEMENTS 150,000 - - 250,000 - 400,000 CITYWIDE FACILITY INTERIOR IMPROVEMENTS - 400,000 400,000 800,000 800,000 2,400,000 CITYWIDE FACILITY ROOF REPLACEMENTS 1,000,000 800,000 100,000 100,000 1,000,000 3,000,000 CITYWIDE FACILITY WATERPROOFING IMPROVEMENTS 475,000 1,000,000 1,000,000 1,000,000 1,000,000 4,475,000 CITYWIDE FENCE IMPROVEMENTS 100,000 100,000 100,000 100,000 100,000 500,000 CITYWIDE FIRE - INTRUSION ALARM SYSTM UPGRADE 250,000 250,000 250,000 250,000 250,000 1,250,000 CITYWIDE PICNIC AREA IMPROVEMENTS 50,000 50,000 50,000 50,000 50,000 250,000 CITYWIDE PLAY COURT RESURFACING 350,000 350,000 350,000 350,000 350,000 1,750,000 CORP YARD MISCELLANEOUS IMPROVEMENTS 100,000 100,000 100,000 100,000 100,000 500,000 CORPORATION YARD PAVING 500,000 500,000 - - - 1,000,000 DISPATCH FACILITY IMPROVEMENT - - - 500,000 - 500,000 DOWNTOWN PARKING IMPROVEMENTS 100,000 100,000 100,000 100,000 100,000 500,000 DOWNTOWN RESTROOMS 25,000 25,000 25,000 25,000 25,000 125,000 EXTERNAL RADIO INFRASTRUCTURE (200,000) - - - - (200,000) FIRE STATION 24 SHOWER REMODEL (144,000) - - - - (144,000) LAURELWOOD PARK RETAINING WALL REPAIR 150,000 - - - 2,000,000 2,150,000 MAIN LIBRARY IMPROVEMENTS 100,000 - - - - 100,000 MARINA LIBRARY STRUCTURAL IMPROVEMENTS 2,250,000 250,000 - - - 2,500,000 OLD FIRE STATION 25 RENOVATION - - - - 800,000 800,000

PARKING LOT RESURFACING (SHORELINE/LAKESHORE/LOS
PRADOS/BERESFORD) 300,000 300,000 300,000 300,000 - 1,200,000 POLICE DEPARTMENT ROOF DRAINAGE IMPROVEMENTS 3,818 - - - - 3,818 POLICE JAIL RETROFIT - - 500,000 - - 500,000 RECREATION CENTER BACKUP GENERATOR CONNECTION 50,000 50,000 50,000 50,000 - 200,000 Facilities Total 5,878,584$ 4,310,000$ 3,360,000$ 4,010,000$ 6,575,000$ 24,133,584$ Parks
BOREL PARK DEVELOPMENT (801,185)$ - - - - (801,185) CENTRAL PARK 750,000 - - - - 750,000 CITYWIDE EMERGENCY FIELD LIGHTING 120,000 120,000 120,000 120,000 - 480,000 CITYWIDE PARK PLAY AREA UPGRADE 500,000 100,000 2,000,000 100,000 2,000,000 4,700,000 CITYWIDE PLAYGROUND EQUIPMENT REPLACEMENT 450,000 450,000 450,000 450,000 450,000 2,250,000 DOWNTOWN DOG PARK - 500,000 500,000 - - 1,000,000 GOLF BUNKERS - - 850,000 - - 850,000 GOLF IRRIGATION CONTROLLERS & MAINLINE - - 50,000 1,000,000 - 1,050,000 JAPANESE GARDEN REPAIRS 350,000 650,000 - - - 1,000,000 JOINVILLE POOL ASSESSMENT & IMPROVEMENTS 2,650,000 - - - - 2,650,000 KING & JOINVILLE CHANGING ROOM IMPROVEMENTS (103,670) - - - - (103,670) CIP Projects by Category

PROJECT NAME
2025-26

PROPOSED
BUDGET
2026-27
PLAN
2027-28
PLAN
2028-29
PLAN
2029-30
PLAN
5-YEAR
TOTAL
Parks (Continued)
LAURELWOOD PARK PLAYGROUND - - 2,200,000 - - 2,200,000 LOS PRADOS COURT LIGHTING IMPROVEMENT 300,000 - - - - 300,000 PARK RESTROOM PHASE V (55,539) - - - - (55,539) PARK RESTROOM REFURBISHMENT PHASE IV 164,601 - - - - 164,601 PARKS AMENITIES ASSESEMENT - 600,000 - - - 600,000
PARKSIDE AQUATIC PLAY AREA 600,000 - - - - 600,000 RYDER PARK WATER FEATURE FILTRATION SYSTEM 50,000 100,000 - - - 150,000 SEAL POINT PARK POND H2S INVESTIGATION AND
REMEDIATION 120,000 - - - - 120,000 SPORTS FIELDS CONVERSION: SYNTHETIC TURF (400,000) - - - - (400,000) SYNTHETIC FIELD REPLACEMENT 1,500,000 - - - - 1,500,000 TREE PLANTING - PARKS DIVISION 175,000 175,000 175,000 175,000 175,000 875,000 WASHINGTON PARK BASKETBALL COURT 22,615 - - - - 22,615 Parks Total 6,391,822$ 2,695,000$ 6,345,000$ 1,845,000$ 2,625,000$ 19,901,822$ Sewer -
ANNUAL SANITARY SEWER REHABILITATION -$ 7,120,000$ 10,350,000$ 8,500,000$ 8,755,000$ 34,725,000$ COLLECTION SYSTEM ODOR CONTROL 200,000 200,000 200,000 200,000 200,000 1,000,000 CWP ANNUAL CITYWIDE SANITARY SEWER REHAB (5,331,000) - - - - (5,331,000) CWP CCTV INSPECTION PROGRAM 409,000 - - - - 409,000 CWP SEWER FLOW MONITORING & REPORTING (172,000) - - - - (172,000) CWP WWTP ANNUAL MAJOR COMPONENTS 5,487,000 5,365,000 - - - 10,852,000 EAST SAN MATEO LIFT STATION 1,563,000 - - - - 1,563,000 PROGRAM MANAGEMENT - SEWER PROJECTS (874,000) - - - - (874,000) ROOT FOAMING 450,000 450,000 450,000 450,000 450,000 2,250,000 SANITARY SEWER CCTV INSPECTION PROGRAM - 900,000 800,000 900,000 1,200,000 3,800,000 SANITARY SEWER FLOW MONITORING & REPORTING - 125,000 125,000 125,000 125,000 500,000 SANITARY SEWER PUMP STATION UPGRADES - 5,257,000 5,420,000 5,588,000 5,755,000 22,020,000

TMDL ENHANCED PLANNING & INFRASTRUCTURE
IMPROVEMENTS 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 12,500,000 WWTP & FLOW MANAGEMENT UPGRADE & EXPANSION 24,957,000 - - - - 24,957,000 WWTP ANNUAL REPAIRS - 7,079,805 17,699,930 7,121,035 12,326,652 44,227,422 WWTP PAVING (100,000) - - - - (100,000) Sewer Total 29,089,000$ 28,996,805$ 37,544,930$ 25,384,035$ 31,311,652$ 152,326,422$ Stormwater
CITYWIDE SOIL STABILIZATION PROGRAM 400,000$ 150,000$ 150,000$ 150,000$ 150,000$ 1,000,000$

COLUMBIA/CRYSTAL SPRINGS STORM DRAIN
IMPROVEMENTS (2,000,000) - - - - (2,000,000) COYOTE PARK/POPLAR PUMP STATION 50,000 - - - - 50,000 GREEN STORMWATER INFRASTRUCTURE PROGRAM 500,000 500,000 200,000 200,000 200,000 1,600,000 MARINA LAGOON DREDGING DESIGN/PERMITTING 150,000 50,000 - - - 200,000 STORM DRAIN CONDITION ASSESSMENT 550,000 100,000 100,000 100,000 100,000 950,000 STORM SYSTEM DREDGING 1,100,000 - - - - 1,100,000 STORM SYSTEM MINOR REPAIR 250,000 250,000 250,000 250,000 250,000 1,250,000 TRASH CAPTURE AT POPLAR AND MONTE DIABLO (750,000) - - - - (750,000) Stormwater Total 250,000$ 1,050,000$ 700,000$ 700,000$ 700,000$ 3,400,000$ Street Lights
HIGH VOLTAGE STREET LIGHT CONVERSION 700,000$ 1,000,000$ -$ -$ -$ 1,700,000$ Street Lights Total 700,000$ 1,000,000$ -$ -$ -$ 1,700,000$ Streets
CITYWIDE SIGN INVENTORY AND REPLACEMENT -$ 150,000$ 150,000$ 150,000$ 150,000$ 600,000$ CITYWIDE STREET RECONSTRUCTION FY18-19 (570,501) - - - - (570,501) CITYWIDE STREET RECONSTRUCTION PACKAGE 1 275,000 - - - - 275,000 CITYWIDE STREET RECONSTRUCTION PACKAGE 2 174,473 - - - - 174,473 CITYWIDE STREET RECONSTRUCTION PACKAGE 3 870,501 - - - - 870,501 CITYWIDE STREET REHABILITATION FY18-19 (160,000) - - - - (160,000) CITYWIDE STREET REHABILITATION PACKAGE 1 (303,000) - - - - (303,000) CIP Projects by Category

PROJECT NAME
2025-26

PROPOSED
BUDGET
2026-27
PLAN
2027-28
PLAN
2028-29
PLAN
2029-30
PLAN
5-YEAR
TOTAL
Streets (Continued)
CITYWIDE STREET REHABILITATION PACKAGE 2 (600,000) - - - - (600,000) CITYWIDE STREET REHABILITATION PACKAGE 3 (205,117) - - - - (205,117) CITYWIDE STREET REHABILITATION PROGRAM 9,284,117 8,468,000 8,853,000 8,053,000 8,053,000 42,711,117 COMPLETE STREETS NORTH CENTRAL 150,000 - - - - 150,000 COMPLETES STREETS PLAN 100,000 - - - - 100,000 LOCAL ROADWAY SAFETY PLAN IMPLEMENTATION PLAN - 200,000 - - - 200,000 PENINSULA CORRIDOR COMPLETE STREETS 225,000 - - - - 225,000 Streets Total 9,240,473$ 8,818,000$ 9,003,000$ 8,203,000$ 8,203,000$ 43,467,473$ Traffic

ALAMEDA DE LAS PULGAS & BARNESON INTERSECTION
SAFETY 7 OPTIMIZATION -$ 200,000$ -$ 700,000$ -$ 900,000$ CITYWIDE TRAFFIC CALMING 150,000 150,000 150,000 150,000 150,000 750,000 CITYWIDE TRAFFIC SIGNAL RETIMING - 25,000 25,000 25,000 25,000 100,000 GRAMMERCY DRIVE RETAINING WALL 50,000 50,000 50,000 50,000 50,000 250,000 HILLSDALE/ALAMEDA DE LAS PULGAS SIGNAL 450,000 - - - - 450,000 NEIGHBORHOOD TRAFFIC MANAGMENT - 100,000 100,000 100,000 100,000 400,000 PENINSULA/DELAWARE SAFETY IMPROVEMENT 650,000 - - - - 650,000

REGIONAL AND CITYWIDE TRANSPORTATION PROGRAM
MANAGEMENT 25,000 25,000 25,000 25,000 25,000 125,000
Traffic Total 1,325,000$ 550,000$ 350,000$ 1,050,000$ 350,000$ 3,625,000$ Other City Capital Projects
CDBG COMMUNITY FACILITIES 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 200,000$ CDD OFFICE REMODEL 140,000 - - - - 140,000 CDD SERVICE IMPROVEMENT - ELECTRONIC & DIGITAL 250,000 250,000 250,000 250,000 250,000 1,250,000 CHILD CARE FACILITIES 450,000 450,000 450,000 450,000 450,000 2,250,000 HOUSING REHABILITATION 60,000 60,000 60,000 60,000 60,000 300,000 LANDFILL MAINTENANCE 1,000,000 - - - - 1,000,000 MINOR HOME REPAIR 127,000 127,000 127,000 127,000 127,000 635,000

PEG PROJECT (PUBLIC, EDUCATIONAL, AND
GOVERNMENTAL ACCESS CHANNELS) 750,000 - - - - 750,000 POLICE FACILITY INTERNET EXPANSION 200,000 - - - - 200,000 POLICE STATION: UPS REPLACEMENT 400,000 - - - - 400,000 TRAIN QUIET ZONE 1,075,000 75,000 - - - 1,150,000 Other City Capital Projects Total 4,492,000$ 1,002,000$ 927,000$ 927,000$ 927,000$ 8,275,000$ Grand Totals 61,540,698$ 54,060,441$ 59,879,930$ 42,984,035$ 51,556,652$ 270,021,756$ CIP Projects by Funding
Source
CIP Projects by Funding Source
2025-26

PROPOSED
BUDGET
2026-27
PLAN
2027-28
PLAN
2028-29
PLAN
2029-30
PLAN
5-Year
TOTAL
Gas Tax
CITYWIDE BICYCLE PARKING -$ 10,000$ 10,000$ -$ -$ 20,000$ CITYWIDE STREET REHABILITATION PROGRAM 1,203,000 1,193,000 1,193,000 1,203,000 1,203,000 5,995,000 GRAMMERCY DRIVE RETAINING WALL 50,000 50,000 50,000 50,000 50,000 250,000 Gas Tax Total 1,253,000$ 1,253,000$ 1,253,000$ 1,253,000$ 1,253,000$ 6,265,000$ General Fund
ADA COMPLIANCE AND TRANSITION PLANNING 250,000$ 35,000$ 35,000$ 35,000$ -$ 355,000$ ADA ENTRY COMPLIANCE - BERESFORD 18,766 - - - - 18,766 BOREL PARK DEVELOPMENT (801,185) - - - - (801,185) CITYWIDE EMERGENCY FIELD LIGHTING 120,000 120,000 120,000 120,000 - 480,000 CITYWIDE FACILITY INTERIOR IMPROVEMENTS - 400,000 400,000 800,000 800,000 2,400,000 CITYWIDE FACILITY ROOF REPLACEMENTS 200,000 - 100,000 100,000 1,000,000 1,400,000 CITYWIDE FACILITY WATERPROOFING IMPROVEMENTS 475,000 1,000,000 1,000,000 1,000,000 1,000,000 4,475,000 CITYWIDE FENCE IMPROVEMENTS 100,000 100,000 100,000 100,000 100,000 500,000 CITYWIDE FIRE - INTRUSION ALARM SYSTM UPGRADE 250,000 250,000 250,000 250,000 250,000 1,250,000 CITYWIDE PICNIC AREA IMPROVEMENTS 50,000 50,000 50,000 50,000 50,000 250,000 CITYWIDE PLAYGROUND EQUIPMENT REPLACEMENT 450,000 450,000 450,000 450,000 450,000 2,250,000 CITYWIDE SIDEWALK REPAIR PROGRAM 115,000 115,000 115,000 115,000 115,000 575,000 CITYWIDE STREET REHABILITATION FY18-19 (160,000) - - - - (160,000) CITYWIDE STREET REHABILITATION PACKAGE 3 (205,117) - - - - (205,117) CITYWIDE STREET REHABILITATION PROGRAM 205,117 - - - - 205,117

COLUMBIA/CRYSTAL SPRINGS STORM DRAIN
IMPROVEMENTS (750,000) - - - - (750,000) CORP YARD MISCELLANEOUS IMPROVEMENTS 50,000 50,000 50,000 50,000 50,000 250,000 CORPORATION YARD PAVING - 500,000 - - - 500,000
DOWNTOWN PARKING IMPROVEMENTS 100,000 100,000 100,000 100,000 100,000 500,000 DOWNTOWN RESTROOMS 25,000 25,000 25,000 25,000 25,000 125,000 FIRE STATION 24 SHOWER REMODEL (144,000) - - - - (144,000) HIGH VOLTAGE STREET LIGHT CONVERSION 700,000 1,000,000 - - - 1,700,000 JOINVILLE POOL ASSESSMENT & IMPROVEMENTS 2,650,000 - - - - 2,650,000 LAURELWOOD PARK RETAINING WALL REPAIR 150,000 - - - 2,000,000 2,150,000 MAIN LIBRARY IMPROVEMENTS 100,000 - - - - 100,000 MARINA LIBRARY STRUCTURAL IMPROVEMENTS 1,000,000 - - - - 1,000,000 OLD FIRE STATION 25 RENOVATION - - - - 800,000 800,000 PARK RESTROOM PHASE V (55,539) - - - - (55,539) PARK RESTROOM REFURBISHMENT PHASE IV 164,601 - - - - 164,601

PARKING LOT RESURFACING (SHORELINE/LAKESHORE/LOS
PRADOS/BERESFORD) 300,000 300,000 300,000 300,000 - 1,200,000 POLICE DEPARTMENT ROOF DRAINAGE IMPROVEMENTS 3,818 - - - - 3,818 POLICE JAIL RETROFIT - - 500,000 - - 500,000 RECREATION CENTER BACKUP GENERATOR CONNECTION 50,000 50,000 50,000 50,000 - 200,000 WASHINGTON PARK BASKETBALL COURT 22,615 - - - - 22,615 General Fund Total 5,434,076$ 4,545,000$ 3,645,000$ 3,545,000$ 6,740,000$ 23,909,076$ Grants
101/92 MULTI-MODAL (FASHION ISLAND CLASS IV BIKE
LANE) 831,819$ 3,988,636$ -$ -$ -$ 4,820,455$ CDBG COMMUNITY FACILITIES 40,000 40,000 40,000 40,000 40,000 200,000 CDBG PROJECTS 450,000 450,000 450,000 450,000 450,000 2,250,000 CHILDCARE FACILITY IMPROVEMENTS - - - 250,000 - 250,000 DELAWARE SAFE ROUTES TO SCHOOL CORRIDOR 1,500,000 - - - - 1,500,000 MINOR HOME REPAIR 127,000 127,000 127,000 127,000 127,000 635,000 Grants Total 2,948,819$ 4,605,636$ 617,000$ 867,000$ 617,000$ 9,655,455$ Measure A

ALAMEDA DE LAS PULGAS & BARNESON INTERSECTION
SAFETY 7 OPTIMIZATION -$ 200,000$ -$ 700,000$ -$ 900,000$ BIKE SAN MATEO PROGRAM 202,000 - - - - 202,000 CITYWIDE BRIDGE MAINTENANCE - 75,000 75,000 - - 150,000 CITYWIDE SAFE ROUTES TO SCHOOL PROGRAM 200,000 200,000 200,000 200,000 200,000 1,000,000 CITYWIDE SIGN INVENTORY AND REPLACEMENT - 150,000 150,000 150,000 150,000 600,000 CITYWIDE STREET RECONSTRUCTION PACKAGE 3 200,000 - - - - 200,000 CITYWIDE STREET REHABILITATION PACKAGE 2 (600,000) - - - - (600,000) CITYWIDE STREET REHABILITATION PROGRAM 2,985,000 2,425,000 2,810,000 2,000,000 2,000,000 12,220,000 CIP Projects by Funding Source
2025-26

PROPOSED
BUDGET
2026-27
PLAN
2027-28
PLAN
2028-29
PLAN
2029-30
PLAN
5-Year
TOTAL
Measure A (Continued)
CITYWIDE TRAFFIC SIGNAL RETIMING - 25,000 25,000 25,000 25,000 100,000 COMPLETE STREETS NORTH CENTRAL 150,000 - - - - 150,000 COMPLETES STREETS PLAN 100,000 - - - - 100,000 HILLSDALE/ALAMEDA DE LAS PULGAS SIGNAL 450,000 - - - - 450,000 LOCAL ROADWAY SAFETY PLAN IMPLEMENTATION PLAN - 200,000 - - - 200,000 REGIONAL AND CITYWIDE TRANSPORTATION PROGRAM 25,000 25,000 25,000 25,000 25,000 125,000 Measure A Total 3,712,000$ 3,300,000$ 3,285,000$ 3,100,000$ 2,400,000$ 15,797,000$ Measure CC
PENINSULA CORRIDOR COMPLETE STREETS 225,000$ - - - - 225,000$ PENINSULA/DELAWARE SAFETY IMPROVEMENT 650,000 - - - - 650,000 Measure CC Total 875,000$ -$ -$ -$ -$ 875,000$ Measure S
CITYWIDE PLAY COURT RESURFACING 350,000$ 350,000$ 350,000$ 350,000$ 350,000$ 1,750,000$ CITYWIDE STREET REHABILITATION PROGRAM 800,000 800,000 800,000 800,000 800,000 4,000,000 COLUMBIA/CRYSTAL SPRINGS STORM DRAIN CHA (1,250,000) - - - - (1,250,000) DISPATCH FACILITY IMPROVEMENT - - - 500,000 - 500,000 EXTERNAL RADIO INFRASTRUCTURE (200,000) - - - - (200,000) GATEWAY PARK PEDESTRIAN BRIDGE IMPROVEMENTS 75,000 - - - - 75,000 KING & JOINVILLE CHANGING ROOM IMPROVEMENTS (103,670) - - - - (103,670) LOS PRADOS COURT LIGHTING IMPROVEMENT 300,000 - - - - 300,000 MARINA LIBRARY STRUCTURAL IMPROVEMENTS 1,250,000 250,000 - - - 1,500,000 NEIGHBORHOOD TRAFFIC MANAGMENT - 100,000 100,000 100,000 100,000 400,000 POLICE FACILITY INTERNET EXPANSION 200,000 - - - - 200,000 POLICE STATION: UPS REPLACEMENT 400,000 - - - - 400,000 QUICK BUILD MOBILITY PROGRAM 100,000 100,000 100,000 100,000 100,000 500,000 SPORTS FIELDS CONVERSION: SYNTHETIC TURF (400,000) - - - - (400,000) SYNTHETIC FIELD REPLACEMENT 1,500,000 - - - - 1,500,000 Measure S Total 3,021,330$ 1,600,000$ 1,350,000$ 1,850,000$ 1,350,000$ 9,171,330$ Measure W
CITYWIDE STREET REHABILITATION PROGRAM 325,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 4,325,000$ TRAIN QUIET ZONE 675,000 75,000 - - - 750,000 Measure W Total 1,000,000$ 1,075,000$ 1,000,000$ 1,000,000$ 1,000,000$ 5,075,000$ Miscellaneous
CITYWIDE FACILITY ROOF REPLACEMENTS 800,000$ 800,000$ - - - 1,600,000$ HOUSING REHABILITATION 60,000 60,000 60,000 60,000 60,000 300,000 LANDFILL MAINTENANCE 1,000,000 - - - - 1,000,000 SEAL POINT PARK POND H2S INVESTIGATION AND
REMEDIATION 120,000 - - - - 120,000 Miscellaneous Total 1,980,000$ 860,000$ 60,000$ 60,000$ 60,000$ 3,020,000$ Parks and Recreation Tax and Fees
CENTRAL PARK 750,000$ -$ -$ -$ -$ 750,000$ CITYWIDE PARK PLAY AREA UPGRADE 500,000 100,000 2,000,000 100,000 2,000,000 4,700,000 DOWNTOWN DOG PARK - 500,000 500,000 - - 1,000,000 GOLF BUNKERS - - 850,000 - - 850,000
GOLF IRRIGATION CONTROLLERS & MAINLINE - - 50,000 1,000,000 - 1,050,000 JAPANESE GARDEN REPAIRS 350,000 650,000 - - - 1,000,000 LAURELWOOD PARK PLAYGROUND - - 2,200,000 - - 2,200,000 PARKS AMENITIES ASSESEMENT - 600,000 - - - 600,000
PARKSIDE AQUATIC PLAY AREA 600,000 - - - - 600,000 RYDER PARK WATER FEATURE FILTRATION SYSTEM 50,000 100,000 - - - 150,000 Parks and Recreation Tax and Fees Total 2,250,000$ 1,950,000$ 5,600,000$ 1,100,000$ 2,000,000$ 12,900,000 Private Contributions
CHILD CARE FACILITIES 450,000$ 450,000$ 450,000$ 450,000$ 450,000$ 2,250,000$ CHILDCARE FACILITY IMPROVEMENTS 150,000 - - - - 150,000 CITYWIDE STREET REHABILITATION PROGRAM 413,000 - - - - 413,000 Private Contributions Total 1,013,000$ 450,000$ 450,000$ 450,000$ 450,000$ 2,813,000$ RMRA
CITYWIDE STREET REHABILITATION PROGRAM 2,700,000$ 2,700,000$ 2,700,000$ 2,700,000$ 2,700,000$ 13,500,000$ RMRA Total 2,700,000$ 2,700,000$ 2,700,000$ 2,700,000$ 2,700,000$ 13,500,000$ CIP Projects by Funding Source
2025-26

PROPOSED
BUDGET
2026-27
PLAN
2027-28
PLAN
2028-29
PLAN
2029-30
PLAN
5-Year
TOTAL
Sewer
ANNUAL SANITARY SEWER REHABILITATION -$ 7,120,000$ 10,350,000$ 8,500,000$ 8,755,000$ 34,725,000$ COLLECTION SYSTEM ODOR CONTROL 200,000 200,000 200,000 200,000 200,000 1,000,000 CORP YARD MISCELLANEOUS IMPROVEMENTS 50,000 50,000 50,000 50,000 50,000 250,000 CORPORATION YARD PAVING 500,000 - - - - 500,000 CWP ANNUAL CITYWIDE SANITARY SEWER REHAB (5,331,000) - - - - (5,331,000) CWP CCTV INSPECTION PROGRAM 409,000 - - - - 409,000 CWP SEWER FLOW MONITORING & REPORTING (172,000) - - - - (172,000) CWP WWTP ANNUAL MAJOR COMPONENTS 5,487,000 5,365,000 - - - 10,852,000 EAST SAN MATEO LIFT STATION 1,563,000 - - - - 1,563,000 PROGRAM MANAGEMENT - SEWER PROJECTS (874,000) - - - - (874,000) ROOT FOAMING 450,000 450,000 450,000 450,000 450,000 2,250,000 SANITARY SEWER CCTV INSPECTION PROGRAM - 900,000 800,000 900,000 1,200,000 3,800,000 SANITARY SEWER FLOW MONITORING & REPORTING - 125,000 125,000 125,000 125,000 500,000 SANITARY SEWER PUMP STATION UPGRADES - 5,257,000 5,420,000 5,588,000 5,755,000 22,020,000

TMDL ENHANCED PLANNING & INFRASTRUCTURE
IMPROVEMENTS 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 12,500,000 WWTP & FLOW MANAGEMENT UPGRADE & EXPANSION 24,957,000 - - - - 24,957,000 WWTP ANNUAL REPAIRS - 7,079,805 17,699,930 7,121,035 12,326,652 44,227,422 WWTP PAVING (100,000) - - - - (100,000)
Sewer Total 29,639,000$ 29,046,805$ 37,594,930$ 25,434,035$ 31,361,652$ 153,076,422$ Stormwater Fee
CITYWIDE SOIL STABILIZATION PROGRAM 400,000$ 150,000$ 150,000$ 150,000$ 150,000$ 1,000,000$ COYOTE PARK/POPLAR PUMP STATION 50,000 - - - - 50,000 GREEN STORMWATER INFRASTRUCTURE PROGRAM 500,000 500,000 200,000 200,000 200,000 1,600,000 MARINA LAGOON DREDGING DESIGN/PERMITTING 150,000 50,000 - - - 200,000 STORM DRAIN CONDITION ASSESSMENT 550,000 100,000 100,000 100,000 100,000 950,000 STORM SYSTEM DREDGING 1,100,000 - - - - 1,100,000 STORM SYSTEM MINOR REPAIR 250,000 250,000 250,000 250,000 250,000 1,250,000 TRAIN QUIET ZONE 400,000 - - - - 400,000 Stormwater Fee Total 3,400,000$ 1,050,000$ 700,000$ 700,000$ 700,000$ 6,550,000$ Taxes, Fees & Charges
CDD OFFICE REMODEL 140,000$ - - - - 140,000$ CDD SERVICE IMPROVEMENT - ELECTRONIC & DIGITAL 250,000 250,000 250,000 250,000 250,000 1,250,000 CITYWIDE STREET RECONSTRUCTION FY18-19 (570,501) - - - - (570,501) CITYWIDE STREET RECONSTRUCTION PACKAGE 1 275,000 - - - - 275,000 CITYWIDE STREET RECONSTRUCTION PACKAGE 2 174,473 - - - - 174,473 CITYWIDE STREET RECONSTRUCTION PACKAGE 3 670,501 - - - - 670,501 CITYWIDE STREET REHABILITATION PACKAGE 1 (303,000) - - - - (303,000) CITYWIDE STREET REHABILITATION PROGRAM 653,000 350,000 350,000 350,000 350,000 2,053,000

PEG PROJECT (PUBLIC, EDUCATIONAL, AND
GOVERNMENTAL ACCESS CHANNELS) 750,000 - - - - 750,000 TRASH CAPTURE AT POPLAR AND MONTE DIABLO (750,000) - - - - (750,000) Taxes, Fees & Charges Total 1,289,473$ 600,000$ 600,000$ 600,000$ 600,000$ 3,689,473$ Traffic Impact Fees
BIKE SAN MATEO PROGRAM 700,000$ 700,000$ 700,000$ -$ -$ 2,100,000$ CITYWIDE TRAFFIC CALMING 150,000 150,000 150,000 150,000 150,000 750,000 Traffic Impact Fees Total 850,000$ 850,000$ 850,000$ 150,000$ 150,000$ 2,850,000$ Tree Replacement Fee
TREE PLANTING - PARKS DIVISION 175,000$ 175,000$ 175,000$ 175,000$ 175,000$ 875,000$ Tree Replacement Fee Total 175,000$ 175,000$ 175,000$ 175,000$ 175,000$ 875,000$ Grand Totals 61,540,698$ 54,060,441$ 59,879,930$ 42,984,035$ 51,556,652$ 270,021,756$ Funded
Projects
Funded Projects

PROJECT NAME FUNDING SOURCE
2025-26

PROPOSED
BUDGET
101/92 MULTI-MODAL (FASHION ISLAND CLASS IV BIKE LANE) Grants 831,819$ ADA COMPLIANCE AND TRANSITION PLANNING General Fund 250,000 ADA ENTRY COMPLIANCE - BERESFORD General Fund 18,766
ALAMEDA DE LAS PULGAS & BARNESON INTERSECTION SAFETY 7 OPTIMIZATION Measure A - ANNUAL SANITARY SEWER REHABILITATION Sewer -
BIKE SAN MATEO PROGRAM Measure A 202,000
BIKE SAN MATEO PROGRAM Traffic Impact Fees 700,000
BOREL PARK DEVELOPMENT General Fund (801,185)
CDBG COMMUNITY FACILITIES Grants 40,000
CDBG PROJECTS Grants 450,000
CDD OFFICE REMODEL Taxes, Fees & Charges 140,000
CDD SERVICE IMPROVEMENT - ELECTRONIC & DIGITAL Taxes, Fees & Charges 250,000 CENTRAL PARK Parks and Recreation Tax and Fees 750,000
CHILD CARE FACILITIES Private Contributions 450,000
CHILDCARE FACILITY IMPROVEMENTS Grants -
CHILDCARE FACILITY IMPROVEMENTS Private Contributions 150,000 CITYWIDE BICYCLE PARKING Gas Tax -
CITYWIDE BRIDGE MAINTENANCE Measure A -
CITYWIDE EMERGENCY FIELD LIGHTING General Fund 120,000
CITYWIDE FACILITY INTERIOR IMPROVEMENTS General Fund -
CITYWIDE FACILITY ROOF REPLACEMENTS General Fund 200,000 CITYWIDE FACILITY ROOF REPLACEMENTS Miscellaneous 800,000 CITYWIDE FACILITY WATERPROOFING IMPROVEMENTS General Fund 475,000 CITYWIDE FENCE IMPROVEMENTS General Fund 100,000
CITYWIDE FIRE - INTRSN ALARM SYSTM UPGRADE General Fund 250,000 CITYWIDE PARK PLAY AREA UPGRADE Parks and Recreation Tax and Fees 500,000 CITYWIDE PICNIC AREA IMPROVEMENTS General Fund 50,000
CITYWIDE PLAY COURT RESURFACING Measure S 350,000
CITYWIDE PLAYGROUND EQUIPMENT REPLACEMENT General Fund 450,000 CITYWIDE SAFE ROUTES TO SCHOOL PROGRAM Measure A 200,000 CITYWIDE SIDEWALK REPAIR PROGRAM General Fund 115,000
CITYWIDE SIGN INVENTORY AND REPLACEMENT Measure A -
CITYWIDE SOIL STABILIZATION PROGRAM Stormwater Fee 400,000 CITYWIDE STREET RECONSTRUCTION FY18-19 Taxes, Fees & Charges (570,501) CITYWIDE STREET RECONSTRUCTION PACKAGE 1 Taxes, Fees & Charges 275,000 CITYWIDE STREET RECONSTRUCTION PACKAGE 2 Taxes, Fees & Charges 174,473 CITYWIDE STREET RECONSTRUCTION PACKAGE 3 Measure A 200,000 CITYWIDE STREET RECONSTRUCTION PACKAGE 3 Taxes, Fees & Charges 670,501 CITYWIDE STREET REHABILITATION FY18-19 General Fund (160,000) CITYWIDE STREET REHABILITATION PACKAGE 1 Taxes, Fees & Charges (303,000) CITYWIDE STREET REHABILITATION PACKAGE 2 Measure A (600,000) CITYWIDE STREET REHABILITATION PACKAGE 3 General Fund (205,117) CITYWIDE STREET REHABILITATION PROGRAM Gas Tax 1,203,000 CITYWIDE STREET REHABILITATION PROGRAM General Fund 205,117 CITYWIDE STREET REHABILITATION PROGRAM Measure A 2,985,000 CITYWIDE STREET REHABILITATION PROGRAM Measure S 800,000 CITYWIDE STREET REHABILITATION PROGRAM Measure W 325,000 CITYWIDE STREET REHABILITATION PROGRAM Private Contributions 413,000 CITYWIDE STREET REHABILITATION PROGRAM RMRA 2,700,000
CITYWIDE STREET REHABILITATION PROGRAM Taxes, Fees & Charges 653,000 CITYWIDE TRAFFIC CALMING Traffic Impact Fees 150,000
CITYWIDE TRAFFIC SIGNAL RETIMING Measure A -
COLLECTION SYSTEM ODOR CONTROL Sewer 200,000
COLUMBIA/CRYSTAL SPRINGS STORM DRAIN CHA General Fund (750,000) COLUMBIA/CRYSTAL SPRINGS STORM DRAIN CHA Measure S (1,250,000) Funded Projects
2026-27
PLAN
2027-28
PLAN
2028-29
PLAN
2029-30
PLAN
5-Year
TOTAL
3,988,636$ -$ -$ -$ 4,820,455$
35,000 35,000 35,000 - 355,000
- - - - 18,766
200,000 - 700,000 - 900,000
7,120,000 10,350,000 8,500,000 8,755,000 34,725,000
- - - - 202,000
700,000 700,000 - - 2,100,000
- - - - (801,185)
40,000 40,000 40,000 40,000 200,000
450,000 450,000 450,000 450,000 2,250,000
- - - - 140,000
250,000 250,000 250,000 250,000 1,250,000
- - - - 750,000
450,000 450,000 450,000 450,000 2,250,000
- - 250,000 - 250,000
- - - - 150,000
10,000 10,000 - - 20,000
75,000 75,000 - - 150,000
120,000 120,000 120,000 - 480,000
400,000 400,000 800,000 800,000 2,400,000
- 100,000 100,000 1,000,000 1,400,000
800,000 - - - 1,600,000
1,000,000 1,000,000 1,000,000 1,000,000 4,475,000
100,000 100,000 100,000 100,000 500,000
250,000 250,000 250,000 250,000 1,250,000
100,000 2,000,000 100,000 2,000,000 4,700,000
50,000 50,000 50,000 50,000 250,000
350,000 350,000 350,000 350,000 1,750,000
450,000 450,000 450,000 450,000 2,250,000
200,000 200,000 200,000 200,000 1,000,000
115,000 115,000 115,000 115,000 575,000
150,000 150,000 150,000 150,000 600,000
150,000 150,000 150,000 150,000 1,000,000
- - - - (570,501)
- - - - 275,000
- - - - 174,473
- - - - 200,000
- - - - 670,501
- - - - (160,000)
- - - - (303,000)
- - - - (600,000)
- - - - (205,117)
1,193,000 1,193,000 1,203,000 1,203,000 5,995,000
- - - - 205,117
2,425,000 2,810,000 2,000,000 2,000,000 12,220,000
800,000 800,000 800,000 800,000 4,000,000
1,000,000 1,000,000 1,000,000 1,000,000 4,325,000
- - - - 413,000
2,700,000 2,700,000 2,700,000 2,700,000 13,500,000
350,000 350,000 350,000 350,000 2,053,000
150,000 150,000 150,000 150,000 750,000
25,000 25,000 25,000 25,000 100,000
200,000 200,000 200,000 200,000 1,000,000
- - - - (750,000)
- - - - (1,250,000)
Funded Projects

PROJECT NAME FUNDING SOURCE
2025-26

PROPOSED
BUDGET
COMPLETE STREETS NORTH CENTRAL Measure A 150,000$
COMPLETES STREETS PLAN Measure A 100,000
CORP YARD MISCELLANEOUS IMPROVEMENTS General Fund 50,000 CORP YARD MISCELLANEOUS IMPROVEMENTS Sewer 50,000
CORPORATION YARD PAVING General Fund -
CORPORATION YARD PAVING Sewer 500,000
COYOTE PARK/POPLAR PUMP STATION Stormwater Fee 50,000
CWP ANNUAL CITYWIDE SANITARY SEWER REHAB Sewer (5,331,000) CWP CCTV INSPECTION PROGRAM Sewer 409,000
CWP SEWER FLOW MONITORING & REPORTING Sewer (172,000)
CWP WWTP ANNUAL MAJOR COMPONENTS Sewer 5,487,000
DELAWARE SAFE ROUTES TO SCHOOL CORRIDOR Grants 1,500,000 DISPATCH FACILITY IMPROVEMENT Measure S -
DOWNTOWN DOG PARK Parks and Recreation Tax and Fees -
DOWNTOWN PARKING IMPROVEMENTS General Fund 100,000
DOWNTOWN RESTROOMS General Fund 25,000
EAST SAN MATEO LIFT STATION Sewer 1,563,000
EXTERNAL RADIO INFRASTRUCTURE Measure S (200,000)
FIRE STATION 24 SHOWER REMODEL General Fund (144,000)
GATEWAY PARK PEDESTRIAN BRIDGE IMPROVEMENTS Measure S 75,000 GOLF BUNKERS Parks and Recreation Tax and Fees -
GOLF IRRIGATION CONTROLLERS & MAINLINE Parks and Recreation Tax and Fees - GRAMMERCY DRIVE RETAINING WALL Gas Tax 50,000
GREEN STORMWATER INFRASTRUCTURE PROGRAM Stormwater Fee 500,000 HIGH VOLTAGE STREET LIGHT CONVERSION General Fund 700,000 HILLSDALE/ALAMEDA DE LAS PULGAS SIGNAL Measure A 450,000 HOUSING REHABILITATION Miscellaneous 60,000
JAPANESE GARDEN REPAIRS Parks and Recreation Tax and Fees 350,000 JOINVILLE POOL ASSESSMENT & IMPROVEMENTS General Fund 2,650,000 KING & JOINVILLE CHANGING ROOM IMPROVEMENTS Measure S (103,670) LANDFILL MAINTENANCE Miscellaneous 1,000,000
LAURELWOOD PARK PLAYGROUND Parks and Recreation Tax and Fees - LAURELWOOD PARK RETAINING WALL REPAIR General Fund 150,000 LOCAL ROADWAY SAFETY PLAN IMPLEMENTATION PLAN Measure A - LOS PRADOS COURT LIGHTING IMPROVEMENT Measure S 300,000 MAIN LIBRARY IMPROVEMENTS General Fund 100,000
MARINA LAGOON DREDGING DESIGN/PERMITTING Stormwater Fee 150,000 MARINA LIBRARY STRUCTURAL IMPROVEMENTS General Fund 1,000,000 MARINA LIBRARY STRUCTURAL IMPROVEMENTS Measure S 1,250,000 MINOR HOME REPAIR Grants 127,000
NEIGHBORHOOD TRAFFIC MANAGMENT Measure S -
OLD FIRE STATION 25 RENOVATION General Fund -
PARK RESTROOM PHASE V General Fund (55,539)
PARK RESTROOM REFURBISHMENT PHASE IV General Fund 164,601 PARKING LOT RESURFACING (SHORELINE/LAKESHORE/LOS PRADOS/BERESFORD) General Fund 300,000 PARKS AMENITIES ASSESEMENT Parks and Recreation Tax and Fees - PARKSIDE AQUATIC PLAY AREA Parks and Recreation Tax and Fees 600,000 PEG PROJECT (PUBLIC, EDUCATIONAL, AND GOVERNMENTAL ACCESS CHANNELS) Taxes, Fees & Charges 750,000 PENINSULA CORRIDOR COMPLETE STREETS Measure CC 225,000
PENINSULA/DELAWARE SAFETY IMPROVEMENT Measure CC 650,000 POLICE DEPARTMENT ROOF DRAINAGE IMPROVEMENTS General Fund 3,818 POLICE FACILITY INTERNET EXPANSION Measure S 200,000
POLICE JAIL RETROFIT General Fund -
POLICE STATION: UPS REPLACEMENT Measure S 400,000
PROGRAM MANAGEMENT - SEWER PROJECTS Sewer (874,000)
Funded Projects
2026-27
PLAN
2027-28
PLAN
2028-29
PLAN
2029-30
PLAN
5-Year
TOTAL
-$ -$ -$ -$ 150,000$
- - - - 100,000
50,000 50,000 50,000 50,000 250,000
50,000 50,000 50,000 50,000 250,000
500,000 - - - 500,000
- - - - 500,000
- - - - 50,000
- - - - (5,331,000)
- - - - 409,000
- - - - (172,000)
5,365,000 - - - 10,852,000
- - - - 1,500,000
- - 500,000 - 500,000
500,000 500,000 - - 1,000,000
100,000 100,000 100,000 100,000 500,000
25,000 25,000 25,000 25,000 125,000
- - - - 1,563,000
- - - - (200,000)
- - - - (144,000)
- - - - 75,000
- 850,000 - - 850,000
- 50,000 1,000,000 - 1,050,000
50,000 50,000 50,000 50,000 250,000
500,000 200,000 200,000 200,000 1,600,000
1,000,000 - - - 1,700,000
- - - - 450,000
60,000 60,000 60,000 60,000 300,000
650,000 - - - 1,000,000
- - - - 2,650,000
- - - - (103,670)
- - - - 1,000,000
- 2,200,000 - - 2,200,000
- - - 2,000,000 2,150,000
200,000 - - - 200,000
- - - - 300,000
- - - - 100,000
50,000 - - - 200,000
- - - - 1,000,000
250,000 - - - 1,500,000
127,000 127,000 127,000 127,000 635,000
100,000 100,000 100,000 100,000 400,000
- - - 800,000 800,000
- - - - (55,539)
- - - - 164,601
300,000 300,000 300,000 - 1,200,000
600,000 - - - 600,000
- - - - 600,000
- - - - 750,000
- - - - 225,000
- - - - 650,000
- - - - 3,818
- - - - 200,000
- 500,000 - - 500,000
- - - - 400,000
- - - - (874,000)
Funded Projects

PROJECT NAME FUNDING SOURCE
2025-26

PROPOSED
BUDGET
QUICK BUILD MOBILITY PROGRAM Measure S 100,000$
RECREATION CENTER BACKUP GENERATOR CONNECTION General Fund 50,000 REGIONAL AND CITYWIDE TRANSPORTATION PROGRAM MANAGEMENT Measure A 25,000 ROOT FOAMING Sewer 450,000
RYDER PARK WATER FEATURE FILTRATION SYSTEM Parks and Recreation Tax and Fees 50,000 SANITARY SEWER CCTV INSPECTION PROGRAM Sewer -
SANITARY SEWER FLOW MONITORING & REPORTING Sewer -
SANITARY SEWER PUMP STATION UPGRADES Sewer -
SEAL POINT PARK POND H2S INVESTIGATION AND REMEDIATION Miscellaneous 120,000 SPORTS FIELDS CONVERSION: SYNTHETIC TURF Measure S (400,000) STORM DRAIN CONDITION ASSESSMENT Stormwater Fee 550,000 STORM SYSTEM DREDGING Stormwater Fee 1,100,000
STORM SYSTEM MINOR REPAIR Stormwater Fee 250,000
SYNTHETIC FIELD REPLACEMENT Measure S 1,500,000
TMDL ENHANCED PLANNING & INFRASTRUCTURE IMPROVEMENTS Sewer 2,500,000 TRAIN QUIET ZONE Measure W 675,000
TRAIN QUIET ZONE Stormwater Fee 400,000
TRASH CAPTURE AT POPLAR AND MONTE DIABLO Taxes, Fees & Charges (750,000) TREE PLANTING - PARKS DIVISION Tree Replacement Fee 175,000 WASHINGTON PARK BASKETBALL COURT General Fund 22,615
WWTP & FLOW MANAGEMENT UPGRADE & EXPANSION Sewer 24,957,000 WWTP ANNUAL REPAIRS Sewer -
WWTP PAVING Sewer (100,000)
Grand Total 61,540,698$
Funded Projects
2026-27
PLAN
2027-28
PLAN
2028-29
PLAN
2029-30
PLAN
5-Year
TOTAL
100,000$ 100,000$ 100,000$ 100,000$ 500,000$
50,000 50,000 50,000 - 200,000
25,000 25,000 25,000 25,000 125,000
450,000 450,000 450,000 450,000 2,250,000
100,000 - - - 150,000
900,000 800,000 900,000 1,200,000 3,800,000
125,000 125,000 125,000 125,000 500,000
5,257,000 5,420,000 5,588,000 5,755,000 22,020,000
- - - - 120,000
- - - - (400,000)
100,000 100,000 100,000 100,000 950,000
- - - - 1,100,000
250,000 250,000 250,000 250,000 1,250,000
- - - - 1,500,000
2,500,000 2,500,000 2,500,000 2,500,000 12,500,000
75,000 - - - 750,000
- - - - 400,000
- - - - (750,000)
175,000 175,000 175,000 175,000 875,000
- - - - 22,615
- - - - 24,957,000
7,079,805 17,699,930 7,121,035 12,326,652 44,227,422
- - - - (100,000)
54,060,441$ 59,879,930$ 42,984,035$ 51,556,652$ 270,021,756$ Unfunded
Projects
Unfunded Projects by Project Amount

PROJECT NAME
TOTAL

ESTIMATED
COST
CENTRAL PARK (PHASE 2-4) 50,000,000$
HILLSDALE BOULEVARD/US 101 BRIDGE OVERCROSSING 50,000,000 NEW CENTRAL PARK PARKING GARAGE 32,000,000
NEW CORPORATION YARD FACILITY 26,000,000
CITYWIDE BRIDGE MAINTENANCE 22,000,000
2ND & EL CAMINO REAL GARAGE LONG-TERM IMPROVEMENTS 20,000,000 KING RESILIENCY CENTER 20,000,000
COYOTE POINT DRAINAGE AREA 17,050,000
19TH AVENUE DRAINAGE AREA 11,972,000
NEW FIRE STATION #27 11,000,000
LAUREL CREEK DRAINAGE AREA 9,567,000
16TH AVENUE DRAINAGE AREA 9,521,000
LAURELWOOD / SUGARLOAF OPEN SPACE 8,215,000
BMP-ML PROJECT 1-14 7,835,000
DETROIT DRIVE DRAINAGE AREA 5,728,000
BMP-L PROJECT 1-17 5,294,000
CITYWIDE PARK SIGNS 5,000,000
SHORELINE PARKS 5,000,000
PARKING FACILITY STRUCTURAL REPAIRS 4,000,000
MARINER'S ISLAND BRIDGE APPROACH STABILIZATION 3,760,000 MONTE DIABLO AVENUE PEDESTRIAN SCALE LIGHTING 3,300,000 PALM AVENUE PEDESTRIAN SCALE LIGHTING 3,300,000
MAIN LIBRARY IMPROVEMENTS 3,183,575
SAN MATEO CREEK DRAINAGE AREA 2,620,000
28TH AVE GAP CLOSURE CONSTRUCTION 2,310,000
PASADENA ROADWAY RECONSTRUCTION 2,250,000
CITYWIDE ELEVATOR MODERNIZATION 1,500,000
PAINT EXTERIOR & INTERIOR MAIN STREET GARAGE 1,500,000
PARK RENOVATION SHOREVIEW PARK MASTER PLAN AND IMPLEMENTATION 1,200,000 LAKESHORE COMMUNITY CENTER IMPROVEMENTS 1,000,000
PARK RESTROOM REFURBISHMENT - PHASE VI 1,000,000
RYDER CREEK BRIDGE PAINTING 750,000
FIRE STATION #27 IMPROVEMETNS 660,000
BAY MEADOWS COMMUNITY PARK PLANNING 500,000
CITYWIDE ASSISTIVE LISTENING DEVICES 400,000
PATHWAY REPAIRS AT VARIOUS PARKS 375,000
PLANNING PARK DEVELOPMENT AT DALE AVE & ANCHOR RD 350,000 REST ROOM BUILDING REPLACEMENT TRINTA 350,000
CITY HALL IMPROVEMENTS 300,000
POLICE DEPARTMENT EXTERIOR - REPAINT DECK FENCING 300,000 EAST 5TH AVENUE PEDESTRIAN SCALE LIGHTING 220,000
STREETLIGHT MASTER PLAN 200,000
REFURBISH NORTH END OF KOI POND 180,000
POLICE DEPARTMENT INTERIOR WORK REORGANIZATION 150,000
INSTALL SECURITY CAMERAS AT SELECTED PARKS 120,000
Grand Total 351,960,575$
Unfunded Projects by Project Name

PROJECT NAME
TOTAL

ESTIMATED
COST
16TH AVENUE DRAINAGE AREA 9,521,000$
19TH AVENUE DRAINAGE AREA 11,972,000
28TH AVE GAP CLOSURE CONSTRUCTION 2,310,000
2ND & EL CAMINO REAL GARAGE LONG-TERM IMPROVEMENTS 20,000,000 BAY MEADOWS COMMUNITY PARK PLANNING 500,000
BMP-L PROJECT 1-17 5,294,000
BMP-ML PROJECT 1-14 7,835,000
CENTRAL PARK (PHASE 2-4) 50,000,000
CITY HALL IMPROVEMENTS 300,000
CITYWIDE ASSISTIVE LISTENING DEVICES 400,000
CITYWIDE BRIDGE MAINTENANCE 22,000,000
CITYWIDE ELEVATOR MODERNIZATION 1,500,000
CITYWIDE PARK SIGNS 5,000,000
COYOTE POINT DRAINAGE AREA 17,050,000
DETROIT DRIVE DRAINAGE AREA 5,728,000
EAST 5TH AVENUE PEDESTRIAN SCALE LIGHTING 220,000
FIRE STATION #27 IMPROVEMETNS 660,000
HILLSDALE BOULEVARD/US 101 BRIDGE OVERCROSSING 50,000,000 INSTALL SECURITY CAMERAS AT SELECTED PARKS 120,000
KING RESILIENCY CENTER 20,000,000
LAKESHORE COMMUNITY CENTER IMPROVEMENTS 1,000,000
LAUREL CREEK DRAINAGE AREA 9,567,000
LAURELWOOD / SUGARLOAF OPEN SPACE 8,215,000
MAIN LIBRARY IMPROVEMENTS 3,183,575
MARINER'S ISLAND BRIDGE APPROACH STABILIZATION 3,760,000 MONTE DIABLO AVENUE PEDESTRIAN SCALE LIGHTING 3,300,000 NEW CENTRAL PARK PARKING GARAGE 32,000,000
NEW CORPORATION YARD FACILITY 26,000,000
NEW FIRE STATION #27 11,000,000
PAINT EXTERIOR & INTERIOR MAIN STREET GARAGE 1,500,000
PALM AVENUE PEDESTRIAN SCALE LIGHTING 3,300,000
PARK RENOVATION SHOREVIEW PARK MASTER PLAN AND IMPLEMENTATION 1,200,000 PARK RESTROOM REFURBISHMENT - PHASE VI 1,000,000
PARKING FACILITY STRUCTURAL REPAIRS 4,000,000
PASADENA ROADWAY RECONSTRUCTION 2,250,000
PATHWAY REPAIRS AT VARIOUS PARKS 375,000
PLANNING PARK DEVELOPMENT AT DALE AVE & ANCHOR RD 350,000 POLICE DEPARTMENT EXTERIOR - REPAINT DECK FENCING 300,000 POLICE DEPARTMENT INTERIOR WORK REORGANIZATION 150,000
REFURBISH NORTH END OF KOI POND 180,000
REST ROOM BUILDING REPLACEMENT TRINTA 350,000
RYDER CREEK BRIDGE PAINTING 750,000
SAN MATEO CREEK DRAINAGE AREA 2,620,000
SHORELINE PARKS 5,000,000
STREETLIGHT MASTER PLAN 200,000
Grand Total 351,960,575$

APPENDIX
Appendix
Financial Policies
Statement of Purpose
The financial integrity of our City government is of utmost importance. To discuss, write, and adopt a set of financial policies is a key element to maintaining this integrity. Our City has evolved with a variety of financial policies that can be found in many different sources, including City Council resolutions, budget documents, and capital improvement
programs. The set of policies within this document, adopted each year with our budget, serves as a central reference point of the most important of our policies, which are critical to the continued financial health of our local government.

Written, adopted financial policies have many benefits, such as assisting elected officials and staff in the financial management of the City, saving time and energy when
discussing financial matters, engendering public
confidence, and providing continuity over time as elected officials and staff members change. While these policies will be amended periodically, they provide the foundation and framework for many of the issues and decisions facing the City. They promote sound financial management and assist in the City’s stability, efficiency, and effectiveness.

The following policies are divided into ten (10) general categories for ease of reference. These categories include:

1. General

2. Accounting, Auditing, and Financial Reporting

3. Funding Balance and Reserve

4. Pension and Retirement Funding

5. Internal Service Fund

6. Debt

7. Revenue

8. Capital Improvement

9. Investment

10. Operating Budget
Except as otherwise noted, all policies included in this document are currently adhered to.

Additionally, included at the end of this section are specific policy benchmarks along with their status.

General
The City will:
• Manage its financial assets in a sound and prudent
manner.
• Maintain and further develop programs to ensure its
long-term ability to fund core services and pay all
costs necessary to provide the level and quality of
service required by its citizens.
• Establish and maintain investment policies that are in accordance with State laws.
• Follow the financial sustainability guiding principles to provide a roadmap to guide future financial decisions.

Accounting, Auditing, and Financial
Reporting
Accounting Standards
The City’s accounting of financial systems shall be
maintained in accordance with Generally Accepted
Accounting Principles (GAAP), standards of the
Governmental Accounting Standards Board (GASB), and the Government Finance Officers Association (GFOA).

Annual Audit
An independent certified public accounting firm will
perform an annual audit, and its opinions will be included in the Annual Comprehensive Financial Report and presented to the City Council at a public meeting.

Financial Information
It is the policy of the City of San Mateo to provide all financial information in a thorough, timely fashion, and in a format that is easy for City Council, citizens, and City employees to understand and utilize.

It is the City’s goal to maintain accounting records,
processes, and procedures in such a manner as to receive an unmodified audit opinion and to maintain a Certificate of Achievement for Excellence in Financial Reporting from the GFOA.

Funding Balance and Reserve
The City utilizes a variety of accounting funds for recording revenues and expenditures of the City. At the end of each fiscal year, budgeted/appropriated expenditure authority lapses, with the exception of capital project spending and operating expenses that have been incurred but not paid (encumbered). The remaining dollars left in each fund are unassigned and constitute available funds of the City. Fund balance will be reported in the following classifications:

Financial Policies
Nonspendable Fund Balance
Amounts that are not in spendable form, such as inventory, prepaid amounts, long-term receivables, and those
that legally or contractually must be kept intact, such as endowment corpus of revolving loan funds.

Restricted Fund Balance
Amounts that can be used only for specific purposes due to constitutional provisions, enabling legislation, or externally imposed constraints, such as restrictions imposed by
creditors, grantors, or other governments.

Committed Fund Balance
Amounts that can only be used for specific purposes
because of a formal action by the government’s highest
decision-making authority. These constraints are binding unless removed in the same manner in which they were
originally committed.

Assigned Fund Balance
Amounts intended for specific purposes but not restricted or committed. The assigned fund balance can never be in excess of the total fund balance less the non-spendable, restricted, and committed components of fund balance.

Ultimately, this is the residual fund balance for all funds other than General Fund.

Unassigned Fund Balance
The residual classification for the General Fund, the only governmental fund that can report a positive unassigned fund balance. Other funds might have a negative
unassigned fund balance due to overspending restricted, committed, or assigned amounts.

General Fund
Based on City Council direction from the April 7, 2025
meeting, the General Fund Reserve Policy has been
amended and is incorporated into the FY 2025-26 Annual
Budget. The revised policy will take effective July 1, 2025 and the full text is included in the Appendix of this budget book.

A summary is provided below:
• Contingency Reserve will be maintained at 15% of
the General Fund budgeted operation expenditures.

This reserve will only be utilized for extraordinary,
one-time events that cause significant financial strain, such as natural disasters, public health crises, legal
obligations, emergency infrastructure repairs, or major unforeseen non-financial emergencies as determined
by the City Council.
•
•
Housing Set-Aside Reserve: Housing Element, 20%
of RDA residual property tax will be allocated annually to the Housing Set-Aside Reserve at the discretion of
the City Council. This reserve will be used to support
a
ffordable housing initiatives.

Capital Improvement Projects (CIP) Carryover
Reserve will hold funds budgeted for capital
improvement projects that have not yet been
transferred to the Capital Projects Fund.
• Budget Stabilization Reserve will be set at 15% of
the General Fund budgeted revenues. This reserve
will be replenished during economic growth periods
and utilized to stabilize the budget and maintain core
services during economic downturns.

The Finance Director shall develop a General Fund
long-range forecast and review the reserve levels
as part of the budget development process. If the
Budget Stabilization Reserve falls below 10% in the
next two budget cycles per the long-range forecast,
the City Manager shall propose a plan to restore the
reserve to the target level, subject to City Council
approval.
• Pension Stabilization Reserve is established to
mitigate impact of rising pension costs and prevent
unexpected increases in unfunded pension liabilities
from affecting city services. Initial contribution to this reserve is $10 million. Additional funding may come
from surplus funds, one-time revenues, or other
unrestricted funding sources, subject to City Council
approval.

Capital Projects Fund
The Capital Investment Reserve is established within the Capital Projects Fund to finance major capital improvement projects that are critical to support municipal services. The full policy text is included in the Appendix of this budget book.

A summary is provided below:

Use of the Capital Investment Reserve should be
authorized by the City Council.

Additional funding may come from surplus funds, one-time revenues, proceeds from the sales of properties, or other unrestricted funding sources, subject to Council approval.

T
o ensure transparency and accountability, the Finance
Director shall provide an annual report on the status of the Capital Investment Reserve. This annual report shall be presented to the City Council during a regularly scheduled financial update.

Financial Policies
Enterprise Fund
The City’s Sewer Enterprise Fund will maintain reserves equal to four months of operating expenses.

Special Revenue Funds
The City’s Construction Services Fund will maintain
reserves equal to twelve months of budgeted operating
expenditures.

Pension and Retirement Funding
The City contracts with the California Public Employees' Retirement System for pension benefits. The City will
make minimum annual payments for the employer share
equal to the required Annual Required Contribution (ARC) established by actuarial valuation but, in any given year, no less than the normal cost.

The City off
ers a retiree health benefit to employees of
$160 per month. The City will fund the Actuarially-
Determined Contribution (ADC) established by actuarial
valuation in an irrevocable trust. Actuarial valuations will be conducted on a biennial basis consistent with accounting standards.

Internal Service Fund
Vehicle and Equipment Replacement Fund
Through the use of the Vehicle/Equipment Replacement
Fund, the City will annually budget sufficient funds to provide for the orderly replacement of the City’s fleet, vehicles, computers, radios, equipment, technology
infrastructure, and other major capital outlay. The fund is supported by charges to user departments, which are
adjusted annually based on the departments’ proportionate share of estimated expenses*. Su
fficient reserves will be
maintained in the Replacement Fund to provide for the
scheduled replacement of equipment at the end of their
useful lives.

Fleet and Building Maintenance Fund
Through the use of the Fleet and Building Maintenance
Fund, the City will annually budget sufficient funds
to provide for orderly fleet and building maintenance
and repair. The fund is supported by charges to user
departments which are adjusted annually based on the
department’s proportionate share of estimated expenses*.

Suffi
cient reserves will be maintained in the Replacement
Fund to provide for the scheduled replacement of
equipment at the end of their useful lives.
*Internal service funds are allocated proportionate to the expenses with exception of the Community Development Block Grant Fund, which needs to maintain less than 10% in indirect costs. Charges may be reduced in this fund if necessary.

Risk Management Funds
The City maintains a Comprehensive Liability Insurance
Fund and a Workers’ Compensation Insurance Fund for the purpose of property, liability, and workers’ compensation expenses. These funds pay insurance premiums, benefit
and settlement payments, and administrative and operating expenses. The City will complete an actuarial valuation of these funds every other year. The Workers’ Compensation Fund is supported by charges to other City funds for the services it provides*. These annual charges for service shall reflect historical experience and shall be established to approximately equal the annual expenses of the fund.

The Comprehensive Liability Fund is predominantly
supported by the General Fund. Separate reserves shall
be maintained for current and long-term general liability and workers’ compensation liability at a level which will adequately fund the City’s potential loss exposure in each area. The practice is to establish reserves in both funds at least at the marginally acceptable level as determined by the actuarial report.

Debt
The City is bound by a provision in State law limiting
indebtedness for California cities to 15% of the assessed value of all real and personal property of the City. The City of San Mateo has been prudent in its use of debt to finance projects and major purchases. Prior to the issuance of any debt, the funding source for the debt service is identified and designated. The level of debt to which the City obligates itself is managed within available resources and represents a minimal cost to general taxpayers.

By managing the repayment of new debt, current City
operations are not affected.

Credit Rating
It is the City’s goal for its general obligation (GO) bonds to maintain a AAA rating, and for the Sewer Enterprise to
maintain a AA-/Aa2 credit rating. The factors that contribute to the high rating include the City’s strong financial
management, low debt levels, budgetary and fiscal
controls, and accountability. To support this policy, the City will continue to maintain its position of full financial disclosure and proactive fiscal planning.

Financial Policies
Revenue
General Fund Revenue
The City will strive to develop and maintain a diversified and reliable revenue stream to avoid becoming overly
dependent on any single type of revenue. Efforts will
be directed to optimize existing revenue sources while
periodically reviewing potential new revenue sources.

Budgeted revenues will be estimated conservatively using accepted standards and estimates provided by the state, other governmental agencies, or reliable economic
forecasters, when available. Due to the volatile nature of the property transfer tax, revenue is projected using a consistent methodology based on historical averages.

Grants
The City shall actively pursue federal, state, and other grant opportunities when deemed appropriate. Before
accepting any grant, the City shall thoroughly consider the implications in terms of ongoing obligations that will be required in connection with acceptance of said grant, including replacement and ongoing operating costs.

Enterprise Fund Fees and Charges
The City will set user fees for its Enterprise Fund at a rate that fully covers direct and indirect costs of providing the service, planned capital improvements that may be
necessary from time to time, and maintains a debt coverage ratio of at least 120% of net revenues for compliance
purposes with outstanding debt covenants.

User Service Fees
The City may impose user fees wherever appropriate.

Such fees will recover the cost of providing the service, demonstrating a nexus to benefits received, including
all direct and indirect costs, administrative overhead, depreciation, etc. By policy, Council may direct certain fees to be lowered for particular purposes. Waivers of user fees will be presented for Council approval as appropriate.

Certain fees are based upon market conditions and are not subject to the limitations of cost recovery. These fees may be adjusted periodically by the City Council. In general, fees will be reviewed no less than annually to ensure that full cost recovery levels are identified.

Capital Improvement
Five-Year Capital Improvement Program (CIP)
The City shall annually prepare a capital improvement
spending program, projecting capital needs for a five-year period. This CIP shall be comprised of all the City’s funds.

The City has been working toward providing a reasonable regular contribution from the General Fund to capital
improvements without reducing services. The first year
of the five-year CIP will be consistent with, and adopted as a component of, the annual operating budget. In the
development of the Capital Improvement Program, the
operating costs associated with the capital project will be projected and considered in conjunction with the CIP.

Enterprise Fund Capital Improvements
Capital Improvements funded from the Enterprise Fund
shall be paid for in a combination of “pay-as-you-go”
financing and the use of long-term debt. The City shall periodically review its enterprise capital needs and
establish capital spending plans that are appropriate and reflect a combination of debt and “pay-as-you-go,” while attempting to keep the enterprise service rates competitive with those in the surrounding area.

Investment
The Investment Advisory Committee and City Council shall annually review and update, or modify as appropriate, the City’s investment policy. The policy shall be adopted by resolution of the City Council based upon the City staff and Investment Advisory Committee’s recommendations.

Reports on the City’s investment portfolio shall be
developed and presented to the City Council quarterly. City funds will be managed in a prudent and diligent manner
with emphasis on safety, liquidity, and yield, in that order.

Operating Budget
Balanced Operating Budget
It is the City’s policy to adopt a balanced budget where operating revenues and available resources are equal to or exceed operating expenditures. Any year-end operating surpluses will revert to unappropriated balances for use in maintaining reserve levels set by policy or available for capital projects and/or “one-time only” General Fund expenditures.

Financial Policies
Budget Document
The budget document shall serve as the official financial plan for the City. It will serve as the policy document of the City Council for implementing Council goals and objectives.

The budget shall provide staff the resources necessary to accomplish City Council-determined service levels.

The City has two-year business plan development
procedures. The two-year business plan process requires that each department submit two one-year expenditure
plans and revenue estimates to be provided to the City
Council for approval. Only the first of the two-year budget will be adopted. The second year represents a projected plan which will be subject to amendment in the following year. In any budget cycle, to remain adaptable to changing economic and/or operational conditions, the City may
choose to develop a one-year plan instead of a two-year budget plan.

Budget Control and Accountability
Department heads are responsible for containing
expenditures within their budgeted appropriations as
approved by the City Council. Subsequent to the adoption of the budget, all additional changes to the budget that have a financial impact require City Manager and City
Council approval.

Activities of the General Fund, Special Revenue Funds,
Debt Service Funds, Proprietary, and Capital Funds are
included in the annual budget. The level of budgetary
control is the department within each fund.

Financial Policies
Policy Status

ACCOUNTING
Benchmark
The City's accounting of financial systems shall be maintained in accordance with Generally Accepted Accounting Principles (GAAP), standards of the Governmental Accounting Standards Board (GASB), and the Government Finance Officers Association (GFOA).

Status Met
Benchmark It is the City’s goal to maintain accounting records, processes, and procedures in such a manner as to receive an unmodified audit opinion and to maintain a Certificate of Achievement for Excellence in Financial Reporting from the GFOA.

Status Met

RESERVE / SINKING FUND
Benchmark The General Fund’s Contingency Reserve will be maintained at 15% of the annual General Fund operating expenditure budget.

Status Met
Benchmark The General Fund’s Housing Set-Aside Reserve will be used to support affordable housing initiatives. Replenishment is at the discretion of the City Council, and usage requires Council authorization.

Status Met
Benchmark
The General Fund’s Budget Stabilization Reserves has a target level set at 15% of the General Fund budgeted revenues. This reserve will be replenished during economic growth periods and utilized to stabilize the budget and maintain core services during economic downturns
Status Met
Benchmark
The General Fund’s Pension Stabilization Reserve is established to mitigate impact of rising pension costs. It will be utilized to stabilize pension contribution and prevent unexpected increases in required pension contribution from affecting city service levels. Usage of this reserve requires City Council approval.

Status Met
Benchmark The City’s Sewer Enterprise Fund will maintain reserves equal to four months of operating expenses.

Status Met
Benchmark The City’s Construction Services Fund will maintain reserves equal to twelve months of budgeted operating expenditures.

Status Met
Benchmark The City will maintain Comprehensive Liability and Workers’ Compensation insurance reserves at no less than marginally acceptable confidence levels.

Status Met
Benchmark
Through the use of the Vehicle and Equipment Replacement Fund, the City will annually budget sufficient funds to provide for the orderly replacement of the City’s fleet, vehicles, computers, radios, equipment, technology infrastructure, and other major capital outlay.

Status Met
Benchmark Through the use of the Fleet and Building Maintenance Fund, the City will annually budget sufficient funds to provide for the orderly fleet and building maintenance and repair.

Status Met
Benchmark A sinking fund for building component/replacement will be maintained.

Status Annual baseline funding of $410,000 has been provided for HVAC, roofing, floor covering, and remodel projects.

Financial Policies
DEBT
Benchmark It is the City’s goal for its general obligation (GO) bonds to maintain a AAA rating, and for the Sewer Enterprise to maintain a AA-/ Aa2 credit rating.

Status Met. GO Bonds rated AAA by S&P. Sewer Enterprise rated Aa2 by Moody's, AA- by S&P.

REVENUE
Benchmark Budgeted revenues will be estimated conservatively using accepted standards and estimates provided by the state, other governmental agencies, or reliable economic forecasters when available.

Status Met
Benchmark Property Transfer Tax is projected using a consistent methodology, which takes a long-term perspective to temper variance from year to year.

Status
Met. Property transfer tax is estimated at $8.0 million per year throughout the General Fund Long-Term Financial Plan, reflecting the expectation that the federal funds rate will gradually decline, and the lower interest rate environment will buoy the real estate market.

Benchmark Full cost recovery for user fees will be achieved.

Status Met. All charges for services are based on the cost of providing the services.

Benchmark Full cost recovery for indirect costs will be achieved.

Status Met
Benchmark The City shall actively pursue federal, state, and other grant opportunities when deemed appropriate.

Status Met. Continuing to assess and apply for grants with a focus on ensuring matching funds are identified, as applicable, and ongoing costs are considered.

CAPITAL IMPROVEMENT
Benchmark The City has been working toward providing a reasonable regular transfer from the General Fund to capital improvements without reducing services.

Status Met. The baseline General Fund transfer is $2.69 million to fund streets, building components, and sidewalk repair.

Benchmark Continue to use bond proceeds and other funding sources for capital projects.

Status Met. Examples are streets and flood control, golf course, wastewater treatment plant, library, and fire station.

INVESTMENT
Benchmark City funds will be managed in a prudent and diligent manner with emphasis on safety, liquidity, and yield; in that order.

Status Met

OPERATING BUDGET
Benchmark It is the City's policy to adopt a balanced budget, where operating revenues and available resources are equal to or exceed operating expenditures.

Status Met
Benchmark The City Manager shall annually prepare and present a proposed operating budget through two study sessions by no later than June of the prior fiscal year; and City Council will adopt said budget no later than June 30th of each year.

Status Met
Policy Status
General Fund Reserves Policy
City of San Mateo, California
Financial Policy
General Fund Reserves
I. Purpose
T
he General Fund Reserve is established to ensure that the City of San Mateo (the City) can sustain municipal services during economic downturns, natural disasters and other major emergencies.

Three of the General Fund’s primary revenue sources are property tax, sales tax, and real property transfer tax. Sales tax and real property transfer tax are highly sensitive to economic cycles. While property tax remains stable, uncertainties around the property tax in-lieu of vehicle license fees (VLF) shortfalls and unfunded pension liabilities create additional long-term financial risks. Further, the City must be prepared for seismic and other catastrophic events that could threaten the City’s long-term fiscal health.

This policy outlines the management, usage, and replenishment of the General Fund reserves to ensure the City’s financial stability and sustainability.

II. Amounts Held in the General Fund Reserves
The General Fund Reserves are divided into five primary categories:

1. Contingency Reserve
The General Fund Contingency Reserve will be maintained at 15% of the General Fund budgeted ope
rating expenditures. This reserve will only be utilized for extraordinary, one-time events that cau
se significant financial strain, such as natural disasters, public health crises, legal obligations, e
mergency infrastructure repairs, or major unforeseen non-financial emergencies as determined by t
he City Council. This reserve is not intended to address revenue losses due to normal economic cy
cles. City Council authorization is required for any use of this reserve.

2. Housing Set-Aside Reserve
In accordance with the approved Housing Element, 20% of RDA residual property tax will be allocated annually to the Housing Set-Aside Reserve at the discretion of the City Council. This reserve will be used to support affordable housing initiatives with City Council authorization.

3. Capital Improvement Projects (CIP) Carryover Reserve:

The General Fund CIP Carryover Reserve will hold funds budgeted for capital improvement projects that have not yet been transferred to the Capital Projects Fund. This reserve is designed to separate c
ommitted funds from the remaining General Fund reserves, to ensure effective financial planning and to prevent commingling of designated capital project funds with other reserves.

4. Budget Stabilization Reserve
The General Fund Budget Stabilization Reserve will be set at 15% of the General Fund budgeted revenues. This reserve is intended to stabilize the General Fund budget during economic downturns or unforeseen expenditure increases to maintain service levels. This reserve will be replenished during economic growth periods and utilized to stabilize the budget and maintain core services during economic downturns.

General Fund Reserves Policy
The 15%
target level serves as a goal range, not a minimum, recognizing that this reserve is intended to be used during economic downturns. It is expected that the balance may fall below 15% in challenging times, as the reserve is designed to help stabilize the budget and maintain essential services. If economic conditions or long-term financial risks warrant additional reserves, the City Council may temporarily increase the Budget Stabilization Reserve above 15% to strengthen the City’s financial position.

The Finance Director shall develop a General Fund long-range forecast and review General Fund reserve levels as part of the budget development process. If the Budget Stabilization Reserve is projected to fall below 10% in the next two budget cycles per the long-range forecast, the City Manager shall propose a plan to restore the reserve to the target level, subject to City Council approval.

5. Pension Stabilization Reserve
The General Fund Pension Stabilization Reserve is established to mitigate impact of rising pension costs and prevent unexpected increases in unfunded pension liabilities from affecting city services.

This reserve is intended to stabilize the City’s annual pension contributions to maintain service levels.

If pension cost uncertainty declines, the Finance Director shall propose options to adjust the reserve level based on the assessed risk, subject to City Council approval. Options may include making one- time discretionary payment to CalPERS to reduce the City’s unfunded pension liabilities.

Initial funding shall be determined at the discretion of the City Council. Additional funding may come from surplus funds, one-time revenues, or other unrestricted funding sources, subject to City Council approval.

Investment earnings generated from this reserve will be credited back to the reserve.

III. Unassigned Fund Balance
Unassigned fund balance represents the portion of General Fund b alance that is not restricted, committed, or
assigned to specific purposes, including the reserve requirements outlined above. It is the most flexible portion of the General Fund balance and is available at the discretion of the City Council.

This balance may serve as an additional cushion for unforeseen expenses. If the unassigned fund balance exceeds 10% of General Fund budgeted expenditures, the Finance Director shall propose options for City Council consideration as part of the budget development process. These options may include additional contributions to the Capital Investment Reserve, one-time capital improvements, pension liability reduction, or other long-term financial priorities. City Council authorization is required for any allocation of the excess funds.

IV .Annual Review of Policy
The General Fund Reserve policy will be reviewed at least annually with the development of each fiscal year’s budget. If changes are deemed necessary, to safeguard its effectiveness and relevance to the City’s long-term needs, or to ensure that the policy remains current with government financial best practices, changes to the policy may be authorized by the City Council at any time.

Capital Investment Reserve Policy