FY 2025-26
Mid-Year
Budget Update
February 23, 2026
1 Agenda
General Fund
• FY 2024-25 Actuals
• FY 2025-26 Mid-Year Updates
qRevenues
qExpenditures
qGeneral Fund Balance
• Update on Financial Sustainability Plan
Sewer Fund
FY 2024-25 Actuals
General Fund
General Fund
2024-25
Adopted
Budget
2024-25
Amended
Budget
2024-25
Mid-Year
Projection
2024-25
Actuals
(audited)
Total Revenues 169.8 $169.8 $173.9 $179.1
Total Expenditures
(including transfer
out)
180.4 183.9 180.3 177.6
Net (10.6) ($14.1) ($6.4) $ 1.5
2024-25
Actuals
(adjusted)
$175.8
178.7
($2.9)
$3.3 million of
Mark-to-Market
Unrealized Gains
(non-cash adjustment)
$1.2 million of
Measure S funds
budgeted but not yet
transferred to CIP Fund
FY 2025-26 Mid-Year Updates
General Fund
FY 2025-26 Mid-Year Updates
General Fund Revenues
33% of VLF
Shortfall
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Actual
2025-26
Estimated
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
Property Tax (In Millions)
General Fund Revenues
Property Tax
$87 million
General Fund Revenues
Property Tax
$0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 $100.0 2021-22
2022-23
2023-24
2024-25
2025-26 Est.
$43.0
$46.6
$48.9
$50.5
$53.0
$17.0
$17.6
$18.8
$19.2
$20.0
$12.3
$16.4
$10.8
$13.8
$14.2
Property Tax By Type (in millions)
Secured Current Excess ERAF + Oher VLF
General Fund Revenues
Property Tax in-lieu VLF (VLF)
*VLF revenues are estimated for FY 2025-26
General Fund Revenues
Sales Tax
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 Est.
$ 25
$ 20
$ 15
$ 10
$ 5
$ -
SALES TAX (IN MILLIONS)
Local 1% Sales Tax (including Prop 172) Measure S Trendline General Fund Revenues
Real Property Transfer Tax (RPTT)
2011-122012-132013-142014-152015-162016-172017-182018-192019-202020-212021-222022-23 2023-242024-252025-26 Est
$ -
$ 2
$ 4
$ 6
$ 8
$ 10
$ 12
$ 14
$ 16
$ 18
$ 20
$ 7.7
$ 11.0
$ 9.0
$ 0.9
$ 6.2
$ 1.9
PROPERTY TRANSFER TAX (RPTT) (IN MILLIONS)
RPTT 0.5% RPTT 1% (Measure CC)
FY 2025-26 Mid-Year Updates
General Fund Expenditures
FY 2025-26 Mid-Year Updates
General Fund
FY 2025-26 Mid-Year Updates
General Fund Trends
Millions
2018-19
ACTUALS
2019-20
ACTUALS
2020-21
ACTUALS
2021-22
ACTUALS
2022-23
ACTUALS
2023-24
Actuals
2024-25
Actuals
2025-26
Estimates
-
20 40
60 80
100
120
140
160
180
200
General Fund Historical Trend
Operating Expenditures Contribution to CIP Revenues
FY 2025-26 Mid-Year Updates
General Fund Balance
$113 mil.
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 Est
$ -
$ 20
$ 40
$ 60
$ 80
$ 100
$ 120
ENDING BALANCE (IN MILLIONS)
FY 2025-26 Mid-Year Updates
Financial Sustainability Update
Expenditure
Control
• Frozen
positions
• Non-General
Fund Charges
• Benefit Savings
• Operating
Budget Savings
Revenue
Enhancements
• Sales Tax
Measure
• Revenue
Agreements
Cost Recovery &
Cost Allocation
• P&R Updated
Cost Recovery
• Citywide
Updated Cost
Allocation
Grant
Opportunities
• Grants
Coordination
• Grants
Acquisition
Economic
Development
• Adopted Work
Plan
• Expand and
Diversify
Revenues
$3.2 Million
Est. Savings
FY 2025-26 Mid-Year Updates
Sewer Fund (in millions)
Upcoming Agenda Items
• April 20 – Fiscal Year 2026-28 Budget Study Session
q Operating Budget Preview
q CIP Budget Preview
• June 1 – FY 2026-28 Proposed Budget (1st Public Hearing) • June 15 – FY 2026-28 Budget Adoption (2nd Public Hearing) Q&A
Abby Veeser
Finance Director
[email protected]
650-522-7102