Proposed
2025-26 Budget
&
2025-30 Capital
Improvement Plan
June 16, 2025
1 Budget Timeline
Budget
Kickoff
February 18
2024-25 Mid-Year
Updates
April 7
General Fund Reserve
Policy Study Session
April 21
Budget Preview
June 2
Proposed Budget
1st Public Hearing
June 16
Budget Adoption
2nd Public Hearing
2 January 2025 February 2025 April 2025 June 2025
FY 2025-26 Citywide Budget (in millions)
3 Proposed FY 2025-26
Citywide Budget
$333.5 million
General Fund
FY 2025-26 Proposed Budget - Expenditures
4 FY 2025-26
Proposed Budget
General Fund Expenditures
$187.7 million
35%
21%
13%
5%
5%
1%
10%
3% 7%
Police
Fire
Recreation and Parks
Library
Public Works
Community Dev
General Admin
Non-Departmental
Transfers Out
General Fund
FY 2025-26 Proposed Budget - Revenues
5 FY 2025-26
Proposed Budget
General Fund Revenues
$175.8 million
General Fund
FY 2025-26 Proposed Budget
6 General Fund (in millions)
2024-25
Adopted
Budget
2025-26
Original
Proposed
Budget
2025-26
Revised
Proposed
Budget
FY 25 vs. FY26
Change in $
FY 25 vs. FY26
Change in %
Total Revenues A 169.9$ 172.5$ 175.8$ 5.9$ 3.5% Expenditures:
Personnel Costs 79.7 80.7 80.7 1.0 1.3% Pension Unfunded Liability (UAL) 13.0 13.6 13.6 0.6 4.6% Other Operating Expenditures 40.1 42.3 42.3 2.2 5.5% SMC Fire and Legacy Costs 36.1 38.8 38.8 2.7 7.5% Total Operating Expenditures B 168.9 175.4 175.4 6.5 3.8% Transfer for Debt Service C 3.0 3.0 3.0 - 0.0% Transfer to Other Funds D 0.4 0.4 0.4 - 0.0% Surplus / (Deficit) before Contribution to CIP E = A - (B+C+D) (2.4) (6.3) (3.0) (0.6) Less: Transfer to Capital Projects Fund F 8.1 8.9 8.9 0.8 9.9% Surplus / (Deficit) G = E - F (10.5)$ (15.2)$ (11.9)$ (1.4)$ General Fund Reserves
7 GENERAL FUND (in millions)
2024-25
YEAR-END
PROJECTION
2025-26
PROPOSED
BUDGET
Beginning Fund Balance 117.9$ 114.8$
Total Revenues 176.6 175.8
Total Expenditures, including transfers (179.7) (187.8) Net Change to Fund Balanc - surplus / (deficit) (3.10) (12.00) Ending Fund Balance 114.8$ 102.8$
Transfer to Capital Investment Reserve (25.0)
Ending Fund Balance- estimated 77.8$
8 FY 2025-26 Proposed Capital Budget
and
Five-Year Capital Improvement Plan (CIP)
FY 2025-26 Proposed Capital Budget
and Five-Year CIP
The following is a breakdown of CIP expenses by program areas:
9 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
City Council Actions
10 Adopt resolutions to approve
• Fiscal Year 2025-26 Operating and Capital Budgets;
• Fiscal Year 2025-26 Gann Appropriations Limit;
• Fiscal Years 2025-30 Capital Improvement Program; and • $25 million initial contribution to the Capital Investment Reserve.
Thank you
Karen Huang
Finance Director
[email protected]
650-522-7110
11