Fiscal Year
2026-28
Proposed
Business Plan
CITY OF SAN MATEO
Table of Contents
BUDGET MESSAGE 1 CAPITAL IMPROVEMENT PROGRAM 78
Funded Projects 79
BUDGET OVERVIEW 12 CIP Projects by Category 81
Citywide Sources of Funding 13 CIP Projects by Funding Source 84 Citywide Operating Budget 15 Unfunded Projects 87
Capital Improvement Projects Budget 17
Schedule of Interfund Transfers 18
APPENDIX 89
Full Time Equivalent (FTE) Personnel 20 GANN Appropriations Limit 90 Pension Long-Term Forecast 21 Budget Changes 91
General Fund Summary 23
General Fund 10-Year Forecast 26
DEPARTMENTS 28
City Attorney 29
City Clerk 30
City Council 31
City Manager's Office 32
Community Development 33
Finance 35
Human Resources 36
Information Technology 37
Library 38
Parks and Recreation 39
Police 41
Public Works 43
Non-Departmental 46
FUND INFORMATION 47
Special Revenues 48
Debt Service 64
Enterprise 68
Internal Services 71
able 2: Operating Budget Changes (in thousands)
Budget Message
1 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) 2026-27 operating budget and the FY 2026-27 Capital Budget along with the City’s Capital Improvement Program (CIP) for the next five years. This budget reflects our commitment to maintaining core City services and making strategic investments in our community, while pursuing long-term fiscal health in a challenging and unpredictable environment.
The proposed citywide budget, including both operating and capital, is $356.5 million for fiscal year 2026-27. This budget focuses on funding 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 $350 million over the next five years in capital projects.
Overall, the Citywide budget does increase in expenditures, which reflects growing operational pressure as inflationary impacts and rising labor costs increasingly affect the cost of delivering services. Costs tied to outside goods and services, utilities, insurance, and personnel continue to trend upward, reflecting broader economic conditions that have materially increased the City’s ongoing operating costs despite efforts to maintain a stable budget. Ongoing obligations such as payments toward unfunded pension liabilities also continue to place demands on the budget. In addition, funding challenges limit the City’s ability to continually maintain and modernize aging facilities and infrastructure, with over $348 million in unfunded capital needs over the next five years. As the City continues to navigate this cost escalation, this budget proposes minimal programmatic expansion for FY 2026-27 given the estimated structural deficit tied to the provision of essential services.
Simultaneously, over the past year, the City’s revenues have continued to face pressure, and the economic outlook has become increasingly uncertain. Factors such as global instability, persistently high inflation and interest rates, flattening sales tax revenues, and shortfalls in State Vehicle License Fee (VLF) funding are all affecting the City’s financial picture. A recent proposed ballot measure to eliminate the City’s real property transfer tax presents an added threat. In addition, there are broader risks to state and federal funding that could further impact local resources.
Taken together, these factors present a risk to the City’s long-term financial stability. Owing to careful financial management by the City Council, both current and past, the City has built up reserves that can help bridge this gap in the short term. However, it is critical to balance this short-term solution with a proactive plan that ensures long-term sustainability. This includes maintaining core services, investing in critical infrastructure, managing costs responsibly, pursuing grant opportunities and increased economic development, and identifying reliable, ongoing sources of revenue – all facets of the City’s active Financial Sustainability Plan.
Financial Sustainability Plan
While we continue to closely monitor these fiscal challenges, we are taking proactive steps through our Financial Sustainability Plan. The plan is already underway, with several actions in progress this past year and additional measures planned to help strengthen the City’s financial future. Our first step has been to implement expenditure controls through freezing ten vacant positions, assessing and shifting appropriate expenses to Non-General Fund sources, generating benefit savings by reducing Worker’s Compensation allocations given a robust existing balance, and implementing various operating budget savings through contract renegotiations. These measures are estimated to save us approximately $3.2 million. The FY 2026-27 budget also proposes $2 million less in General Fund funding for capital projects to help offset some of the anticipated operating deficit.
2 Transmittal of Proposed Budget
Next, we are exploring opportunities to strengthen revenues. We have improved cost recovery through revised funding and pricing models and selected a consultant to produce a citywide updated cost allocation plan. In addition, we continue to pursue grant opportunities through our grant consultant and work towards enhanced economic development through implementation of our Adopted Economic Workplan for 2026-2029, including exploration of billboard policies and assessment of City-owned properties for highest and best use. Finally, we are researching the possibility of placing a sales tax measure on the November 2026 ballot, an option that will be considered by this City Council in July.
As we remain attentive to the challenges ahead, this budget message provides an overview of the steps we will take to effectively serve our community and meet its needs in the immediate future and beyond. These steps are grounded in the City Council’s Strategic Plan Priorities which guide our overall approach for the FY 2026-27 Citywide Operating Budget as well as the FY 2026-27 Capital Budget and Five-Year Capital Improvement Program (CIP) presented below.
City Council Strategic Plan Priorities
The City Council priorities for FY 2026-27 are part of the first citywide Strategic Plan, a tool to aid in the implementation and prioritization of the City’s ten major Strategic Initiatives. The Strategic Plan is presented in full in the next section of the budget book. In FY 2026-27, the City will focus on four of the ten strategic initiatives: Climate Resiliency, Infrastructure, Transportation, and Housing. Below are some of the City Council adopted FY 2026-27 priorities; for a full list of priorities, please refer to the Priority Initiative subsection under the City Overview:
Climate Resiliency
By October 2026, complete the Marina Lagoon Spot Dredging project, removing 2,000 cubic yards from the Lagoon.
Install electric vehicle charging infrastructure at the Co rporation Yard by January 2027 to enable the transition to a green City Fleet by 2035.
Conduct community and business engagement to educate the community about the prohibition on gas leaf blowers that begins on January 1, 2027.
Infrastructure
Complete the Central Park Playground project and East Hillsdale Park renovation project by December 2026. By June 2027, complete the King Pool and Resilien cy Center conceptual design phase. This project will modernize the existing swim center and locker rooms into a multifunctional resilience center. In FY 2026-27, initiate design phase for a new Fire Station (27) that fully complies with all local, state, and national fire, building, and safety codes, ensuring a resilient, efficient, and mission-ready facility that supports operational needs and community safety.
Transportation
Complete 100% design and secure Caltrans authorization to proceed forward to construction for the 19th Ave Fashion Island Multimodal Project by June 2027.
Complete construction and closeout of Peninsula/Dela ware Intersection Safety improvements by March 2027. Complete construction and closeout the Delaware Safe Routes to School Corridor project by September 2026.
3 Transmittal of Proposed Budget
Housing
Hold a study session regarding the City’s affordable housing funds and options for deployment by September 2026.
Amend the City’s Inclusionary Housing Ordinance and updat e the Below Market Rate Guidelines to increase the number of affordable units produced overall (based on a nexus study, if necessary) and to incentivize production of larger units and deeper affordability by December 2026. Review permitting procedures for single-family projects (modifications, remodels and new construction), and identify ways to speed up the process, reduce costs for homeowners and create efficiencies for city staff by simplifying and streamlining requirements and the permitting process and present findings and options for implementation at a study session by January 2027.
These annual City Council strategic plan priority initiatives are reflected in the FY 2026-27 Citywide Operating Budget and the FY 2026-27 Capital Budget. These budgets advance the priorities by focusing investments on both completing and initiating critical capital improvement projects, exploring modifications and improvements to policies and procedures, and advancing new programs and community engagement efforts.
2026-27 Citywide Operating Budget
The table below summarizes the FY 2026-27 business plans for Citywide operating expenditures:
CITYWIDE OPERATING BUDGET 2026-27
PROJECTED
BUDGET
General Fund $ 183.8
Special Revenue and Debt Service Funds 31.6 Enterprise Funds 74.9
Total Operating Budget $ 290.3
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 first year of the two-year budget cycle.
The proposed FY 2026-27 Citywide operating budget is $290.3 million, which is an increase of approximately 6.4% over the adopted FY 2025-26 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, insurance, and utilities.
As outlined, few new requests have been added to the budget as part of the current budget process. The proposed FY 2026-27 budget recommends generally maintaining merit staffing levels, with the reallocation of three existing positions and the addition of three unfunded positions. This puts the City at 557 Full Time Equivalents (FTE). 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 for the one-time purchase of equipment, but they represent only about $0.3 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.
4 Transmittal of Proposed Budget
General Fund
The General Fund is the primary funding source for our core services. The FY 2026-27 proposed budget, including transfers out, is $190.9 million, an increase of 2.0% over the adopted FY 2025-26 budget of $187.8 million. This increase is the result of several factors, including rising personnel costs, especially increases due to negotiated labor contracts and benefits, rising utility and insurance costs, and rising pension costs.
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. However, unlike the prior year budget, the FY 2026-27 revenue projections assume that the property tax in-lieu of vehicle license fees (VLF) shortfalls will not be backfilled by the State of California in full this year. As such, overall revenues are projected to decline relative to FY 2025-26. 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 $17.0 million for FY 2026-27 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.
General Fund Expenditures
2026-27 Proposed Budget
$190.9 million
Personnel Expenses
Non-Personnel Operating Expenses
SMC Fire and Legacy Costs
Transfers Out to Other Funds
General Fund Revenues
2026-27 Proposed Budget
$173.9 million
Property Tax
Sales Tax
Property Transfer Tax
Business License Tax
Transient Occupancy Tax
Recreation and Golf Service Charges
All Other
5 Transmittal of Proposed Budget
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 2026-27 budget showcases how Measure S funding is allocated to enhance our City core services and infrastructure. Measure S continues to provide $2.2 million to support ongoing police, library, and parks and recreation programs. In contrast to the $2-3 million typically allocated out of Measure S to support CIP projects, this budget proposes only $0.7 million in CIP contributions due to significant capital budgeting of Measure S funds over the last two years which has committed much of the fund’s balance. The smaller allocation contributes to essential capital expenses while allowing the fund to build. The proposed allocations for FY 2026-27 include $0.1 million for the Neighborhood Traffic Management project, $1.5 million for the Citywide Street Rehabilitation Program, $0.6 million for the Citywide Roof Replacements project, $0.15 million for the Citywide Play Court Resurfacing project, $0.2 million for the Quick Build Mobility Program, and $0.15 million for the Peninsula/Delaware Intersection Safety Improvement project. These additions are offset by a $2 million reduction in the Smooth Street Program projects under the Citywide Street Reconstruction Package III which do not require additional funding going into FY 2026-27. On May 21, 2026, the Measure S Oversight Committee reviewed and recommended the Measure S FY 2026-27 budget, which has been incorporated in this proposed budget document.
2026-27 Capital Budget and 2026-31 Five-Year Capital Improvement Program (CIP) The Capital Improvement Program (CIP) for FY 2026-27 totals $66.3 million. Major projects include the King Recreation and Swim Center, the New Fire Station #27, the Wastewater Treatment Plant (WWTP) Dissolved Air Flotation Tank Replacement (DAFT), and high priority stormwater improvements:
King Recreation and Swim Center: In FY 2026-27, $4.0 million of Capital Investment Reserve funding is allocated for the Phase I design work of the King Recreation and Swim Center project. The project involves the development of a new pool and updated locker room facilities along with other essential items to establish a resiliency center at the facility.
New Fire Station #27: The City will undertake the planning and design for the replacement of Fire Station 27 to address deficiencies in the existing facility. The project will deliver a modern fire station that supports current and future service demands, enhances safety and operational efficiency, and complies with applicable building and life-safety codes. The total estimated project cost is $11 million, including approximately $1.1 million allocated for planning and design. For FY 2026-27, $2.2 million is allocated from the Capital Investment Reserve for pre-construction design work.
WWTP DAFT Replacement: The City continues to rely on the old section of the Wastewater Treatment Plant facility for solids processing, creating a critical need for the replacement of aging and failing infrastructure with more reliable technology and proper functioning. This project will replace the existing failing Dissolved Air Flotation Tank (DAFT) with rotary drum thickeners. In FY 2026-27, $5 million is appropriated from the Sewer Fund for this project, with a total project cost of $17.7 million.
High Priority Stormwater Improvements: This $14.25 million project includes the planning, design, and construction of the “Very High” priority projects identified in the Storm Drain Master Plan (SDMP). It focuses on pump station upgrades, mainline improvements, and rehabilitation of existing storm drain infrastructure needed to provide at least a 10-year level of flood protection throughout the city, and up to a 100-year level of protection for major facilities such as pump stations and large channels. A total of $2.25 million is allocated in FY 2026-27 for this project.
In addition to these major initiatives, we have several other important capital and infrastructure projects programmed in the budget for FY 2026-27. Some of the notable projects include:
Marina Library Structural Improvements – An additional allocation of $0.4 million to the project will help complete the improvements to resolve settlement issues at the facility including structural foundation and American with 6 Transmittal of Proposed Budget
Disabilities Act (ADA) improvements. The project will also cover additional improvements such as roof replacement, lighting, flooring, mechanical, electrical, plumbing and drainage improvements. Quick Build Mobility Program – This project implements quick safety projects for pedestrians, bicyclists, and active transportation. A total of $0.2 million is allocated for this project in FY 2026-27. Citywide Roof Replacement – This project involves the design of a waterproofing system for roofs that are beyond their useful life including the Beresford Recreation Center, Senior Center, City Hall, Hillsdale Library, and Shoreview Recreation Center. A total of $0.6 million is allocated for this project in FY 2026-27.
Finally, several studies and assessments are underway or planned for the upcoming fiscal year:
Lakeshore Center Feasibility Study – The City has secured $1.2 million in federal funding to support the expansion of an affordable, full-day preschool for low-income families at the Lakeshore Center. A feasibility study is currently underway to assess options for the facility, including the provision of licensed full-time childcare and the potential for a public-private partnership. Anticipated improvements may include upgrades to plumbing and electrical systems, expansion of administrative space, installation of air conditioning, and compliance with ADA standards. Staff anticipate presenting the findings and recommendations of the feasibility study to the City Council by Fall 2026.
Corporation Yard Best Use Study – This study will help the City explore future options for the existing site on Pacific Boulevard. This will cover concepts such as an improved corporation yard, a civic building, and various types of mixed-use or multi-zone subdivisions, and will serve as a basis for generating more ideas and gathering public feedback.
Storm Drain Master Plan – This study is currently underway and will provide a comprehensive, prioritized CIP for the City’s storm drainage/flood control infrastructure around the start of FY 2026-27. Preliminary potential CIP needs were presented to Council in January 2026.
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, 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, the City’s largest tax revenue, 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. The City’s third largest tax revenue, property transfer tax, fluctuates with economic conditions and the housing market. Due to high interest rates and a stable, but slow housing market, property transfer tax is anticipated to grow moderately with a $9.0 million revenue projection for the upcoming year. However, recent potential efforts to eliminate Real Property Transfer Tax at the state level pose a threat to this essential revenue source.
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 8% 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. 7 Transmittal of Proposed Budget
The City’s FY 2026-27 proposed budget assumes that the State will not honor its VLF obligations to the City. Our share of FY 2023-24 county-wide VLF shortfalls is $6.6 million. Of this total, only $4.4 million has been backfilled to date, leaving an unrestored backfill of $2.2 million. In addition, the City does not anticipate receiving any portion of the $6.9 million FY 2024-25 shortfall repayment during FY 2026-27. These unrecovered funds have already exacerbated the City’s budget deficit and will continue to do so should VLF shortfalls remain unreimbursed.
Pension Costs
Pension obligations continue to place 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 in prior years and changes in actuarial assumptions. The City’s unfunded pension liability is currently about $290 million. Citywide pension costs are expected to continue to go up in FY 2026-27 as they did in FY 2025-26, though not by quite as much. For FY 2025-26, the General Fund pension total increased $1.2 million while an increase of $900,000 is expected in FY 2026-27. Some of the increase is due to historic changes to the unfunded pension liability resulting from the CalPERS’s investment loss of -6.2% in FY 2021-22 and the 5.8% investment gain in FY 2022-23, which did not meet the CalPERS investment projections. In the last two completed fiscal years, CalPERS met its investment objectives with a
9.3% return in FY 2023-24 and a 12.1% in FY 2024-25. Thus, additional increases to the City’s unfunded pension liability are mostly due to updates to the actuarial assumptions. Given this history, the City’s overall pension costs are estimated to gradually 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.
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 an increasing share of our overall operating revenues.
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
2025-26 $6.5 $20.5 $27.0 $20.6 131%
2026-27 $6.3 $21.8 $28.1 $20.6 136%
2027-28 $6.4 $22.7 $29.1 $21.0 139%
2028-29 $6.4 $24.6 $31.0 $21.4 145%
2029-30 $6.5 $24.9 $31.4 $21.9 144%
2030-31 $6.5 $25.2 $31.7 $22.3 142%
2031-32 $6.5 $24.5 $31.0 $22.7 136%
2032-33 $6.5 $24.3 $30.8 $23.2 133%
2033-34 $6.6 $23.0 $29.6 $23.7 125%
2034-35 $6.6 $22.5 $29.1 $24.1 121%
* 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.
8 Transmittal of Proposed Budget
Aging City Facilities and Infrastructure
It is well-acknowledged that resources such as parks, open space, playgrounds, libraries, vibrant recreation facilities, smooth and safe streets, storm and flood controls, and clean water infrastructure are the essence of 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, including Gas Tax (state gas taxes), Measures A and W (countywide transportation focused sales taxes), Measure M (countywide vehicle license fee), and Road Maintenance and Rehabilitation Account (SB-1 state gas tax) funds, totaling about $9.2 million in FY 2026-27 to fund streets and transportation projects. However, the annual cost of maintaining our streets alone nears $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 $6.4 million annually to fund CIP projects, the FY 2026-27 contribution proposes a $2 million reduction in General Fund funding for capital projects to help offset some of the anticipated operating deficit. Additionally, the Measure S allocation is reduced to allow the fund to build, given that significant capital budgeting of Measure S funds over the last two years has committed much of the fund’s balance. At the same time, the budget recommends a one-time Measure CC contribution of $1.25 million to help address critical infrastructure needs and offset the lack of General Fund resources. Overall, the anticipated contribution totals from the General Fund, Measure S, and Measure CC are proposed at $4.2 million, with $2.25 million from the General Fund, $0.7 million from Measure S, and $1.25 million from Measure CC.
During FY 2025-26, the City completed the Citywide Comprehensive Facilities Condition Assessment to ensure effective investments and prioritize the many competing needs. Based on Council direction, staff is proposing $6.7 million in allocations from the Capital Investment Reserve to fund various projects identified in the key findings of the assessment.
This funding is proposed to go towards project budget requests in FY 2026-27 for the King Recreation and Swim Center ($4.0 million), New Fire Station 27 ($2.2 million), Downtown Parking Analysis ($0.25 million), and Comprehensive Recreation and Aquatic Facilities Assessment ($0.25 million). This contribution of $6.7 million will leave a remaining balance of $18.3 million in the Capital Investment Reserve and cover funding gaps between the total General Fund, Measure S, and Measure CC contributions and project budget requests in FY 2026-27.
In addition to the proposed projects, many City facility projects were put on hold or deferred due to funding issues. These projects have high-level cost estimates that would need to be further refined at the point of becoming a funded project.
Notable projects on the unfunded list include future phases of the King Center and Fire Station 27 after the currently funded phases are completed, the 28th Avenue Gap Closure project (construction funding), large-scale Marina Lagoon dredging (design and construction), and future full-scale implementation of Master Plan efforts including the forthcoming Storm Drain Master Plan and long-term implementation of the Bike Master Plan. This list highlights the significant need related to City facilities and infrastructure.
Although funding is a challenge, our goal is to continue working collaboratively, exploring funding options, and prioritizing needs to create a plan to build the infrastructure and facilities our community deserves.
Ongoing Fiscal Challenges and Actions
Historically, fiscal responsibility has remained a top priority for our City. Our City Council has continually committed to the prudent fiscal discipline that has upheld our strong financial position. Considered decision-making and proactive planning have allowed us to accumulate healthy reserves. This financial prudence allows the City to maintain current service levels, 9 Transmittal of Proposed Budget
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
.
Table 2: General Fund Ten-Year Forecast – Practical Scenario (in millions)
The forecast, based on the middle-ground or “practical” forecasting scenario, assumes that the State and the County will not reach an agreement to fix the VLF funding issue in time for any shortfall reimbursement in FY 2026-27. Beginning in FY 2027-28, the model assumes that the VLF shortfall will be backfilled at 67 percent. Under this scenario, the City can maintain its service levels for a few more years. However, if economic conditions do not improve and no actions are taken to address the budget imbalance, we may risk depleting two of the buckets that make up the City’s General Fund Reserves by FY 2028-29, including the City’s Budget Stabilization and Pension Stabilization Reserves. Furthermore, by FY 2030-31, our General Fund balance may fall short of maintaining the 15% Contingency Reserve.
To balance the budget, the twofold 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, we are implementing the measures outlined in the Financial Sustainability Plan as well as continuing to evaluate all the other 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.
The practical scenario largely adheres to the status quo as we wait for economic conditions to develop. Several variables will impact our financial outlook in the coming years. If the housing market ramps up, 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.
Future of San Mateo
As the City manages this uncertain fiscal outlook, we anticipate greater clarity at mid-year regarding key factors, including VLF revenues, the status of Real Property Transfer Tax, and the development of global factors. In the interim, the City is fully committed to maintaining high-quality services and prioritizing strategic investments in infrastructure while upholding the Council’s Strategic Plan. Utilizing the information and resources available to us, we will act with intention, GENERAL FUND 2025-26
Est. 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2034-36
REVENUES
Total Revenues 177.2 173.9 180.8 184.6 191.4 193.8 202.8 209.4 211.5 223.3 230.7
EXPENDITURES
Operating Expenses 174.0 183.8 186.2 190.6 195.4 198.9 204.2 209.2 213.3 218.3 223.5 Transfers to CIP 8.9 4.0 6.6 5.9 5.9 5.9 6.5 6.5 6.8 6.8 6.8 Transfers Out - Debt Service & Other 1.3 3.1 3.2 3.3 3.3 3.3 3.3 3.3 3.3 3.3 3.3 Total Expenditures 184.3 190.9 195.9 199.7 204.5 208.1 214.0 219.0 223.4 228.4 233.5 Surplus / (Deficit) (7.1) (17.0) (15.1) (15.1) (13.2) (14.3) (11.2) (9.6) (11.9) (5.1) (2.8) General Fund - Beginning Fund Balance 119.5 87.4 71.9 56.8 41.7 28.5 14.2 3.0 (6.6) (18.5) (23.5) Transfer to Capital Invesment Reserve (25.0)
General Fund - Ending Fund Balance $87.4 $70.3 $56.8 $41.7 $28.5 $14.2 $3.0 ($6.6) ($18.5) ($23.5) ($26.3) 10 Transmittal of Proposed Budget
transparency, and prudence. The current year represents a period of careful monitoring and evaluation while the variables at hand evolve. As conditions unfold and we obtain additional insights, we anticipate providing more frequent updates to support timely, informed decisions that best serve the community.
Closing Remarks
As always, the budget process gives me an opportunity to present you with a measured, transparent, and forward-looking budget plan that elevates the City Council’s priorities and the community’s needs. Regardless of the challenges before us, we take pride in utilizing our resources to provide excellent service to our community and bolster the infrastructure that serves as the foundation of our City. We continue our commitment to engaging stakeholders, exploring new revenue options, and considering operational efficiencies, positioning ourselves to proactively address long-term financial challenges while maintaining our core services. Together, we will remain steadfast in our dedication to building a vibrant, dynamic, 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 Abby Veeser, Deputy Finance Director Paniz Amirnasiri, Budget Manager Renee Halcon, Senior Accounting Assistant Samantha Wong, and Senior Management Analyst Karley Toffey, who drove the process to develop the budget and prepare this budget document. Finally, I commend Public Works Director Matt Fabry, Parks and Recreation Director Joanne Magrini, Deputy Director of Public Works Katherine Sheehan, Sustainability Analyst Andrea Chow and Business Manager Jamie Perez for their overall management of the capital budget and long-term capital plan.
Respectfully submitted,
Alex Khojikian
City Manager
11 Budget Overview
12 Citywide Sources of Funding
CATEGORY
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
Property Tax 86,466,000$ 91,954,000$
Sales Tax 27,946,000 28,501,000
Property Transfer Tax 9,000,000 9,000,000 Transient Occupancy Tax 4,806,667 4,902,333 Business License Tax 8,300,000 8,470,000 Franchises 3,510,000 3,550,000
Building and Other Permits 8,272,000 9,025,100 Capital Contribution 9,586,800 9,876,700 Charges for Services 113,443,614 116,623,314 Department In Lieu Payments 7,865,585 8,020,552 Fines, Forfeitures, and Penalties 2,024,000 2,024,000 Impact Fees 2,625,000 5,725,000
Intergovernmental 12,520,211 11,859,789
Investment Income 12,190,000 11,935,000
Special Assessments 2,657,000 2,697,000 Other 1,531,735 1,525,060
Total Citywide Sources of Funding $ 312,744,612 $ 325,688,848 * Fees and Charges include charges for services, fines, forfeitures, and penalties; franchises; inpact fees; special assessments. **Tax Revenues include property tax, sales tax, property transfer tax, transient occupancy tax, business license tax. 3% 3% 2%
40%
4%4%
44%
0%
CITYWIDE SOURCES OF FUNDING
2026-27 ($312.7 MILLION)
Building and Other Permits
Capital Contribution
Department in Lieu Payments
Fees and Charges
Intergovernmental
Investment Income
Tax Reveues
Other
0.5%
13 Citywide Sources of Funding
FUNDS
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
General Funds
General Fund 152,067,146$ 158,791,986 $
Measure S Tracking 6,936,000 7,075,000
Downtown Services 4,464,000 4,457,000
Recreation Services 4,556,000 4,606,000 Golf 3,543,500 3,543,500
General Funds Total 171,566,646$ 178,473,486 $ Special Revenue Funds
Police Grants & Safety Fund 1,258,755$ 420,322 $ Solid Waste 2,968,000 3,003,000
HOME 27,500 27,500
Community Development Block Grant 810,758 740,000 Advance Planning 2,450,000 2,450,000
Construction Services 9,783,500 10,486,925 Gas Tax 3,145,437 3,207,346
City Housing 260,000 260,000
Low and Moderate Income Housing Asset Fund 294,000 294,000 Parks and Recreation Revenue 200,000 1,700,000 Traffic Impact Fee 2,000,000 100,000
Commercial Linkage Fee 600,000 4,100,000 Road Maint and Rehab Acct (RMRA) 3,166,263 3,255,251 Permanent Local Housing Allocation 239,986 239,986 Landfill Bond 100,000 100,000
Special Revenue Funds Total $ 27,304,199 $ 30,384,330 Debt Service Funds
Street and Flood 175,000$ 180,000 $
General Obligation Bonds 1,561,000 1,584,000 2% Hotel Tax 686,667 700,333
Debt Service Funds Total $ 2,422,667
$ 2,464,333
Enterprise Funds
Storm 4,191,000$ 4,313,100$
Sewer 106,545,100 109,518,600
Enterprise Funds Total $ 110,736,100 $ 113,831,700 Internal Service Funds*
Vehicle and Equipment Replacement 2,215,000$ 2,135,000$ Fleet and Building Maintenance 6,321,704 6,847,275 Benefits 54,134,725 55,814,796
Dental 1,202,000 1,238,000
Workers' Compensation 3,100,000 3,181,000 Comprehensive Liability 6,750,000 7,425,000 Internal Service Funds Total $ 73,723,429 $ 76,641,071 Total Citywide Sources of Funding $ 312,744,612 $ 325,688,848 * For Internal Service Funds, only Investment Income is included in Citywide Sources of Funding. 14 Citywide Operating Budget
DEPARTMENT
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
City Attorney 1,854,422$ 1,906,320$
City Clerk 1,508,913 1,216,088
City Council 530,689 546,325
City Manager 4,135,315 4,287,770
Community Development 17,706,885 18,021,524 Finance 4,871,598 5,091,819
Human Resouces 2,979,714 3,099,712
Information Technology 5,512,406 5,906,093 Library 9,920,290 10,446,859
Parks and Recreation 25,075,060 26,203,038 Police 69,397,387 70,152,859
Public Works 59,753,761 58,321,900
San Mateo Consolidated Fire Department Contribution and Fire Legacy Costs 40,719,059 42,347,845 Non-Departmental 46,285,784 47,791,817
Total City Operating Budget $ 290,251,281 $ 295,339,971 * Totals do not include Internal Service Funds.
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%
Non-Departmental
San Mateo Consolidated Fire Department Contribution
and Fire Legacy Costs
Public Works
Police
Parks and Recreation
Library
Community Development
Citywide Administration*
CITYWIDE OPERATIONS BY DEPARTMENT
2026-27 (290.25 Million)
$21.39
$17.71
$9.92
$25.08
$69.4
$59.75
$40.72
$46.29
San Mateo Consolidated Fire Department
Contribution and Fire Legacy Costs
15 Citywide Operating Budget
FUND
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
General Funds
General 162,870,474$ 168,369,611$
Measure S Tracking 2,428,404 2,414,895
Measure CC Tracking 200,000 200,000
Housing Set-Aside 30,000 30,000
Downtown Services 4,815,790 4,977,407
Recreation Services 10,080,835 10,488,868 Golf 3,409,725 3,686,063
General Funds Total 183,835,228$ 190,166,845$ Special Revenue Funds
Police Grants and Safety 1,841,718$ 412,226$ Solid Waste 5,541,712 4,769,120
HOME 10,000 10,000
Community Development Block Grant 416,429 411,420 Advance Planning 2,097,006 2,134,206
Construction Services 14,586,099 14,832,898 City Housing 278,500 273,500
Low and Moderate Income Housing Asset 528,470 535,950 Parks and Recreation Revenue 18,806 19,370 Commercial Linkage Fee 16,663 16,833 Permanent Local Housing Allocation 217,207 217,207 Landfill 112,981 101,950
Special Revenue Funds Total 25,665,591$ 23,734,680$ Debt Service Funds
Street and Flood Control Projects Bond 2,701,671$ 2,702,346$ General Obligation Bonds 2,130,806 2,145,040 2% Hotel Tax 983,800 1,018,800
Debt Service Funds Total 5,816,277$ 5,866,186$ Enterprise Funds
Storm 1,025,827$ 700,145$
Sewer 73,908,358 74,872,115
Enterprise Funds Total 74,934,185$ 75,572,260$ Total City Operating Budget 290,251,281$ 295,339,971$ Internal Service Funds*
Vehicle and Equipment Replacement 11,567,261$ 2,907,761$ Fleet and Building Maintenance 6,616,290 6,739,259 Benefits 53,814,029 55,449,600
Dental 888,000 923,000
Workers’ Compensation 4,413,699 4,440,762 Comprehensive Liability 6,089,600 6,606,616 Internal Service Funds Total 83,388,879$ 77,066,998$ * Informational figures only. Not included in totals since they are already included in departmental budgets. 16 Capital Improvement Projects (CIP) Budget
CIP BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
Total City Transfers 69,409,599$ 73,616,969 $ Less Capital Improvement Projects Transfers 53,998,677 61,253,000 Total Operating Transfers 15,410,922$ 12,363,969 $ Total Capital Improvement Projects Transfers 53,998,677 $ 61,253,000 $ Add Capital Improvement Projects Revenue & Fund Balance 12,273,236 8,365,000 Total Capital Improvement Projects Budget 66,271,913 $ 69,618,000 $ 4% 1%
74%
6%
14%
1%
CAPITAL IMPROVEMENT PROJECTS BUDGET
2026-27 ($66.3 MILLION)
General Fund
Measure S
Sewer Fund (Clean Water Program)
Stormwater Fee
Taxes, Fees, and Charges
Other Sources
17 Schedule of Transfers
In Out In Out
General Fund
From Measure S Tracking Fund 339,032$ -$ 339,032$ -$ From Construction Services Fund 550,000 - 570,000 - From Gas Tax Fund 1,747,500 - 1,747,500 - To Housing Set Aside Reserve Fund - - - - To 2% Hotel Tax Fund - 200,000 - 250,000 To Downtown Services Fund - 464,234 - 526,357 To Recreation Services Fund - 5,790,656 - 6,021,580 To Capital Projects Fund - 2,000,000 - 4,250,000 To Vehicle and Equipment Replacement Fund - 410,000 - 410,000 Total 2,636,532$ 8,864,890$ 2,656,532$ 11,457,937$ Measure S Tracking Fund
To General Fund -$ 339,032$ -$ 339,032$ To Street and Flood Control Project Fund - 2,500,000 - 2,500,000 To Capital Projects Fund - 700,000 - 2,350,000 Total -$ 3,539,032$ -$ 5,189,032$ Measure CC
To Capital Projects Fund -$ 1,250,000$ -$ -$ Total -$ 1,250,000$ -$ -$ Downtown Services Fund
From General Fund 464,234$ -$ 526,357$ -$ Total 464,234$ -$ 526,357$ -$ Recreation Services Fund
From General Fund 5,790,656$ -$ 6,021,580$ -$ Total 5,790,656$ -$ 6,021,580$ -$
Community Development Block Grant
To Capital Projects Fund -$ 450,000$ -$ 450,000$ Total -$ 450,000$ -$ 450,000$ Construction Services Fund
To General Fund -$ 550,000$ -$ 570,000$ To Capital Projects Fund - - - - Total -$ 550,000$ -$ 570,000$ Gas Tax
To General Fund -$ 1,747,500$ 1,747,500$ To Capital Projects Fund - 2,193,000 1,303,000 Total -$ 3,940,500$ -$ 3,050,500$ Parks and Recreation Revenue Fund
To Capital Projects Fund -$ 975,677$ -$ 1,725,000$ Total -$ 975,677$ -$ 1,725,000$ Traffic Impact Fee Fund
To Capital Projects Fund -$ -$ -$ 200,000$ Total -$ -$ -$ 200,000$ Road Maintenance and Rehabilitation Account Fund
To Capital Projects Fund -$ 3,000,000$ -$ 3,000,000$ Total -$ 3,000,000$ -$ 3,000,000$ Landfill Fund
To Capital Projects Fund -$ 80,000$ -$ -$ Total -$ 80,000$ -$ -$ FUND
2026-27 PROPOSED 2027-28 PROJECTED
Transfer Transfer
18 Schedule of Transfers
In Out In Out
Street and Flood Control Project Fund
From Measure S Tracking Fund 2,500,000 $ - $ 2,500,000$ -$ Total 2,500,000$ -$ 2,500,000$ -$ 2% Hotel Tax Fund
From General Fund 200,000$ -$ 250,000$ -$ Total 200,000$ -$ 250,000$ -$ Storm Fund
To Capital Projects Fund -$ 3,375,000$ -$ 3,550,000$ Total -$ 3,375,000$ -$ 3,550,000$ Sewer Fund
To Capital Projects Fund -$ 39,925,000$ -$ 44,325,000$ Total -$ 39,925,000$ -$ 44,325,000$ Vehicle and Equipment Replacement Fund
From General Fund 410,000$ -$ 410,000$ -$ To Fleet and Building Maintenance Fund - 410,000 - - To Capital Projects Fund - 50,000 - 100,000 Total 410,000$ 460,000$ 410,000$ 100,000$ Fleet and Building Maintenance Fund
From Vehicle and Equipment Replacement Fund 410,000$ -$ -$ -$ Total 410,000$ -$ -$ -$ Workers' Compensation Fund
To Comprehensive Liability Fund -$ 3,000,000$ -$ -$ Total -$ 3,000,000$ -$ -$ Comprehensive Liability Fund
From Workers' Compensation Fund 3,000,000$ -$ -$ -$ Total 3,000,000$ -$ -$ -$ Capital Projects Fund
From General Fund 2,000,000$ -$ 4,250,000$ -$ From Measure S Tracking Fund 700,000
- 2,350,000 -
From Measure CC Fund 1,250,000 - - - From Community Development Block Grant 450,000 - 450,000 - From Gas Tax Fund 2,193,000 - 1,303,000 - From Parks and Recreation Revenue Fund 975,677 - 1,725,000 - From Traffic Impact Fee Fund - - 200,000 - From Road Maintenance and Rehabilitation Account Fund 3,000,000 - 3,000,000 - From Landfill Fund 80,000 - - - From Storm Fund 3,375,000 - 3,550,000 - From Sewer Fund 39,925,000 - 44,325,000 - From Vehicle and Equipment Replacement Fund 50,000 - 100,000 - Total 53,998,677$ -$ 61,253,000$ -$ Total City Transfers $ 69,410,099 $ 69,410,099 $ 73,617,469 $ 73,617,469 2026-27 PROPOSED 2027-28 PROJECTED
Transfer TransferFUND
19 Full Time Equivalent (FTE) Personnel
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
All Funds All Funds All Funds
By Department
City Attorney 5.00 5.00 5.00 City Clerk 4.88 4.63 4.63 City Council 5.00 5.00 5.00 City Manager 9.00 12.38 12.38 Community Development 57.92 57.96 57.96 Finance 19.00 19.00 19.00 Human Resources 13.48 13.96 12.96 Information Technology 14.23 14.23 14.23 Library 49.73 51.23 51.23 Parks and Recreation 116.17 113.38 113.38 Police 175.96 177.10 177.10 Public Works 167.04 166.00 166.00 Total City 637.41 639.87 638.87 By Type
Merit 554.13 557.13 556.13
Per Diem 83.28 82.74 82.74 Total City 637.41 639.87 638.87 20 Pension Long-Term Forecast
(In millions) 2023-24
ACTUALS
2024-25
ACTUALS
2025-26
ESTIMATES
2026-27
PROPOSED
2027-28
PROJECTED
Pension Contribution 1 - By Plan
Miscellaneous $ 10.6 $ 11.8 $ 11.8 $ 12.6 $ 13.0 Safety 17.1 18.4 20.1 20.8 21.4 Total Pension Contribution - By
Plan 27.7$ 30.2$ 31.8$ 33.4$ 34.4$ Pension Contribution 1 - By Type
Normal Costs $ 7.4 $ 7.4 $ 8.0 $ 7.9 $ 7.9 Unfunded Actuarial Liability (UAL) 20.3 22.8 23.9 25.5 26.5 Total Pension Contribution - By
Type 27.7$ 30.2$ 31.8$ 33.4$ 34.4$ Actuarial Unfunded Liabilities
Miscellaneous $ 100.3 $ 100.8 $ 95.5 $ 93.4 $ 90.3 Safety 198.1 199.1 189.2 184.8 179.3 Total Actuarial Unfunded Liabilities 298.4$ 299.9$ 284.6$ 278.1$ 269.5$ Funded Percentage
Miscellaneous 70% 71% 73% 75% 76%
Safety 60% 61% 63% 65% 67%
Total Funded Percentage 64% 65% 68% 69% 71%
Total Pension Contribution as % of
Covered Payroll
3 Miscellaneous 28% 30% 28% 29% 30%
Safety 96% 102% 99% 100% 100%
Total Total Pension Contribution as
% of Covered Payroll 50% 53% 51% 52% 53%
Pension Contribution as % of
General Fund Expenditures 2
Miscellaneous 7% 7% 7% 7% 7%
Safety 11% 11% 11% 11% 12%
Total Pension Contribution as % of
General Fund Expenditures 18% 18% 18% 18% 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. 21 Pension Long-Term Forecast
2028-29
FORECAST
2029-30
FORECAST
2030-31
FORECAST
2031-32
FORECAST
2032-33
FORECAST
2033-34
FORECAST
2034-35
FORECAST
$ 14.1 $ 14.2 $ 14.4 $ 14.1 $ 14.0 $ 13.4 $ 13.2
22.7 23.0 23.2 22.8 22.6 21.7 21.4
36.8$ 37.3$ 37.6$ 36.8$ 36.6$ 35.2$ 34.6$ $ 8.0 $ 8.1 $ 8.1 $ 8.2 $ 8.2 $ 8.3 $ 8.3
28.8 29.2 29.5 28.6 28.4 26.9 26.3
36.8$ 37.3$ 37.6$ 36.8$ 36.6$ 35.2$ 34.6$ $ 86.6 $ 81.6 $ 76.2 $ 70.4 $ 64.5 $ 58.4 $ 52.5 172.7 164.3 155.0 144.8 134.4 123.4 112.7 259.3$ 245.9$ 231.2$ 215.2$ 198.9$ 181.8$ 165.2$ 78% 80% 81% 83% 85% 87% 88%
68% 70% 73% 75% 77% 79% 81%
72% 74% 76% 78% 80% 82% 84%
31% 31% 30% 29% 28% 26% 25%
103% 102% 100% 95% 92% 86% 82%
55% 54% 53% 50% 49% 46% 44%
7% 7% 7% 7% 7% 6% 6%
12% 12% 12% 11% 11% 10% 10%
20% 19% 19% 18% 18% 17% 16%
22 General Fund
23 General Fund Summary
GENERAL FUND
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
Resources
Property Tax $ 85,030,000 $ 90,470,000 Sales Tax - Local 1% 20,600,000 21,012,000 Sales Tax - Prop 172 410,000 414,000 Sales Tax - 1/4% Measure S 6,936,000 7,075,000 Property Transfer Tax 9,000,000 9,000,000 Transient Occupancy Tax 4,120,000 4,202,000 Business License Tax 8,300,000 8,470,000 Franchises 3,510,000 3,550,000 Golf Fees 3,543,500 3,543,500 Recreation Service Charges 4,450,000 4,500,000 Permits, Fees, and Fines 7,710,000 8,020,000 Intergovernmental 3,490,000 3,590,000 Interest and Miscellaneous 6,600,000 6,600,000 Transfers In - In Lieu Charges 5,166,000 5,321,000 Transfers In - Rent from Sewer Fund 2,700,000 2,700,000 Transfers In - Construction Services 550,000 570,000 Transfers In - Gas Tax 1,747,500 1,747,500 Current Resources $ 173,863,000 $ 180,785,000 Use Unassigned Fund Balance $ 17,032,228 $ 19,142,000 Total Resources $ 190,895,228 $ 199,927,000 Expenditures by Department
City Attorney $ 1,409,817 $ 1,448,378 City Clerk 1,508,913 1,216,088 City Council 530,689 546,325 City Manager 3,511,210 3,644,942 Community Development 2,223,033 2,333,468 Finance 4,640,623 4,853,915 Human Resources 2,818,540 2,933,703 Information Technology 5,354,423 5,743,371 Library 9,920,290 10,446,859 Parks and Recreation 25,042,604 26,169,608 Police 67,365,783 69,545,050 Public Works 11,690,968 11,763,696 Non-Departmental 7,099,127 7,173,596 Transfers Out 7,060,000 9,760,000 San Mateo Consolidated Fire Department Constribution and Fire Legacy Costs 40,719,208 42,348,000 Total Expenditures $ 190,895,228 $ 199,927,000 Resources Over / (Under) Expenditures $ - $ - 24 General Fund Summary
*Department totals shown in millions.
**Citywide Administration includes these departments: City Attorney, City Clerk, City Council, City Manager, Finance, Human Resources, and Information Technology.
City Administration
$19.8
Community
Development
$2.2
Library
$9.9
Parks and
Recreation
$25.0
Police
$67.4
Public Works
$11.7
Non-Departmental
$7.1
Transfers Out
$7.1
San Mateo
Consolidated Fire
Department
Constribution and Fire
Legacy Costs
$40.7
GENERAL FUND
OPERATING BUDGET BY DEPARTMENT
2026-27 ($190.9 MILLION)
25 GENERAL FUND 10-YEAR FORECAST
2024-25
ACTUALS
2025-26
ESTIMATED
ACTUALS
2026-27
PROPOSED
2027-28
FORECAST
2028-29
FORECAST
REVENUES
Property Tax 83,534,637$ 87,218,911$ 85,030,000$ 90,470,000$ 93,994,000$ Sales Tax - Local 1% 19,961,410 20,600,000 20,600,000 21,012,000 21,432,000 Sales Tax - Prop 172 395,277 400,000 410,000 414,000 418,000 Sales Tax - 1/4% Measure S 6,761,850 6,800,000 6,936,000 7,075,000 7,217,000 Property Transfer Tax 11,038,171 9,000,000 9,000,000 9,000,000 9,000,000 Measure CC 6,205,147 1,892,375 - - - Business License Tax 7,194,377 8,100,000 8,300,000 8,470,000 8,640,000 Transient Occupancy Tax 4,702,015 4,300,000 4,120,000 4,202,000 4,286,000 Franchises 3,485,831 3,480,000 3,510,000 3,550,000 3,590,000 Golf Fees 3,458,094 3,343,500 3,543,500 3,543,500 3,610,000 Recreation Service Charges 4,300,763 4,358,000 4,450,000 4,500,000 4,640,000 Permits, Fees, and Fines 8,203,943 7,731,708 7,710,000 8,020,000 8,260,000 Intergovernmental 4,800,016 3,456,445 3,490,000 3,590,000 3,660,000 Interest and Miscellaneous 8,523,867 7,338,712 6,600,000 6,600,000 5,350,000 Transfers In - In Lieu Charges 4,906,546 5,070,896 5,166,000 5,321,000 5,480,000 Transfers In - Rent from Sewer Fund 1,800,000 1,800,000 2,700,000 2,700,000 2,700,000 Transfers In - Construction Services 788,000 530,000 550,000 570,000 590,000 Transfers In - Gas Tax 1,747,500 1,747,500 1,747,500 1,747,500 1,747,500 TOTAL REVENUES 179,094,076$ 177,168,047$ 173,863,000$ 180,785,000$ 184,614,500$
EXPENDITURES
Salaries and Wages 55,543,366$ 57,400,000$ 60,455,236$ 62,269,000$ 63,514,000$ Benefits 22,061,151 21,300,000 23,224,167 24,180,000 25,410,000 Pension Unfunded Liability (UAL) 12,984,027 13,364,142 14,292,617 15,016,000 16,326,000 Non-Personnel Operating 37,677,028 43,218,259 45,144,000 46,354,000 47,459,000 SMC Fire and Legacy Costs 36,095,951 38,761,532 40,719,208 42,348,000 42,348,000 Transfers Out 13,288,868 10,256,215 7,060,000 9,760,000 9,160,000 Budget Savings - (4,000,000) (4,500,000) TOTAL EXPENDITURES 177,512,556$ 184,300,148$ 190,895,228$ 195,927,000$ 199,717,000$ Resources Over / (Under) Requirements 1,581,520$ (7,132,101)$ (17,032,228)$ (15,142,000)$ (15,102,500)$ Transfers Out to CIP Investment Reserve (25,000,000)$
Beginning Fund Balance 117,931,895$ 119,513,415$ 87,381,314$ 71,913,634$ 56,771,634$ Ending Fund Balance 119,513,415$ 87,381,314$ 70,349,087$ 56,771,634$ 41,669,134$ 26 GENERAL FUND 10-YEAR FORECAST
2029-30
FORECAST
2030-31
FORECAST
2031-32
FORECAST
2032-33
FORECAST
2033-34
FORECAST
2034-35
FORECAST
2035-36
FORECAST
99,498,000$ 100,840,000$ 108,668,000$ 113,532,000$ 114,438,000$ 124,434,000$ 130,014,000$ 21,861,000 22,298,000 22,744,000 23,199,000 23,663,000 24,136,000 24,619,000 422,000 426,000 430,000 434,000 438,000 442,000 446,000 7,361,000 7,508,000 7,658,000 7,811,000 7,967,000 8,126,000 8,289,000 9,000,000 9,000,000 9,000,000 9,000,000 9,000,000 9,000,000 9,000,000 - - - - - - - 8,810,000 8,990,000 9,170,000 9,350,000 9,540,000 9,730,000 9,920,000 4,372,000 4,459,000 4,548,000 4,639,000 4,732,000 4,827,000 4,924,000 3,630,000 3,670,000 3,710,000 3,750,000 3,790,000 3,830,000 3,870,000 3,680,000 3,750,000 3,830,000 3,910,000 3,990,000 4,069,800 4,151,196 4,780,000 4,920,000 5,070,000 5,220,000 5,380,000 5,540,000 5,710,000 8,510,000 8,770,000 9,030,000 9,300,000 9,580,000 9,870,000 10,170,000 3,730,000 3,800,000 3,880,000 3,960,000 4,040,000 4,120,000 4,200,000 5,000,000 4,500,000 4,000,000 4,000,000 3,500,000 3,500,000 3,500,000 5,640,000 5,810,000 5,980,000 6,160,000 6,340,000 6,530,000 6,730,000 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 610,000 630,000 650,000 670,000 690,000 710,000 730,000 1,747,500 1,747,500 1,747,500 1,747,500 1,747,500 1,747,500 1,747,500 191,351,500$ 193,818,500$ 202,815,500$ 209,382,500$ 211,535,500$ 223,312,300$ 230,720,696$ 64,784,000$ 66,728,000$ 68,730,000$ 70,792,000$ 72,916,000$ 75,103,000$ 77,356,000$ 25,910,000 26,690,000 27,490,000 28,320,000 29,170,000 30,040,000 30,940,000 16,538,000 16,704,000 16,229,000 16,097,000 15,229,000 14,879,000 14,308,000 48,595,000 49,763,000 50,965,000 52,201,000 53,472,000 54,780,000 56,126,000 44,042,000 44,042,000 45,778,000 46,808,000 47,540,000 48,536,000 49,727,001 9,160,000 9,160,000 9,810,000 9,810,000 10,060,000 10,060,000 10,060,001 (4,500,000) (5,000,000) (5,000,000) (5,000,000) (5,000,000) (5,000,000) (4,999,999) 204,529,000$ 208,087,000$ 214,002,000$ 219,028,000$ 223,387,000$ 228,398,000$ 233,517,003$ (13,177,500)$ (14,268,500)$ (11,186,500)$ (9,645,500)$ (11,851,500)$ (5,085,700)$ (2,796,307)$ 41,669,134$ 28,491,634$ 14,223,134$ 3,036,634$ (6,608,866)$ (18,460,366)$ (23,546,066)$ 28,491,634$ 14,223,134$ 3,036,634$ (6,608,866)$ (18,460,366)$ (23,546,066)$ (26,342,373)$ 27 Departments
28 City Attorney
FINANCIALS
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
Expenditures by Category
Personnel 1,653,252$ 1,721,085 $ 1,772,718 $ Operating 5,222,800 6,155,235 6,670,000
Indirect & Overhead 66,978 67,701 70,218
Total Expenditures $ 6,943,030 $ 7,944,022 $ 8,512,936 Funding Sources
General Funds 1,362,186$ 1,409,817$ 1,448,378$ Special Revenue Funds
278,375 319,617 329,206
Enterprise Funds 118,039 124,988 128,737
Internal Service Funds 5,184,430 6,089,600 6,606,616 Total Funding Sources $ 6,943,030 $ 7,944,022 $ 8,512,936
FULL TIME EQUIVALENT (FTE) PERSONNEL
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
City Attorney 1.00 1.00 1.00
Senior Assistant City Attorney 1.00 1.00 1.00
Assistant City Attorney 2.00 2.00 2.00
Executive Secretary To City Attorney 1.00 1.00 1.00
Total Merit 5.00 5.00 5.00
Total Per Diem - - -
Total Positions 5.00 5.00 5.00
29 City Clerk
FINANCIALS
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
Expenditures by Category
Personnel 997,777$ 1,023,324$ 1,054,024 $ Operating 89,492 481,759 152,834 Indirect & Overhead 10,623 3,829 9,229 Total Expenditures 1,097,892$ $ 1,508,913 $ 1,216,088 Funding Sources
General Funds 1,097,892$ 1,508,913$ 1,216,088$ Total Funding Sources 1,097,892$ $ 1,508,913 $ 1,216,088
FULL TIME EQUIVALENT (FTE) PERSONNEL
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
City Clerk 1.00 1.00 1.00 Assistant To The City Clerk 1.63 1.63 1.63 Deputy City Clerk 1.00 1.00 1.00 Management Analyst I/II 1.00 1.00 1.00 Total Merit 4.63 4.63 4.63 Total Per Diem 0.25 - - Total Positions 4.88 4.63 4.63 30 City Council
FINANCIALS
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
Expenditures by Category
Personnel 133,099$ 158,841 $ 163,606 $ Operating 417,256 370,931 380,508 Indirect & Overhead 13,450 917 2,211 Total Expenditures 563,805$ $ 530,689 $ 546,325 Funding Sources
General Funds 563,805$ 530,689 546,325 Total Funding Sources 563,805$ $ 530,689 $ 546,325
FULL TIME EQUIVALENT (FTE) PERSONNEL
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
City Council Member 5.00 5.00 5.00 Total Merit 5.00 5.00 5.00 Total Per Diem - - - Total Positions 5.00 5.00 5.00 31 City Manager
FINANCIALS
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
Expenditures by Category
Personnel 2,496,059$ 2,776,165$ 2,860,215$ Operating 1,195,600 1,343,410 1,409,470
Indirect & Overhead 18,189 15,740 18,085
Total Expenditures 3,709,848$ $ 4,135,315 $ 4,287,770 Funding Sources
General Funds 3,137,340$ 3,511,210$ 3,644,942$ Special Revenue Funds
481,670 546,957 563,366
Enterprise Funds 90,838 77,148 79,462
Total Funding Sources 3,709,848$ $ 4,135,315 $ 4,287,770
FULL TIME EQUIVALENT (FTE) PERSONNEL
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
City Manager 1.00 1.00 1.00
Assistant City Manager 1.00 1.00 1.00
Business Manager - 1.00 1.00
Communications Manager 1.00 1.00 1.00
Communications & Engagement Coordinatior I/II 1.00 1.00 1.00 Economic Development Manager 1.00 1.00 1.00
Executive Secretary To City Manager 1.00 1.00 1.00
Management Analyst I/II 1.00 1.00 1.00
Sr. Management Analyst 1.00 1.00 1.00
Sustainability Analyst 1.00 - -
Fellow I/II (Limited Term) * - 3.00 3.00
Total Merit 9.00 12.00 12.00
Total Per Diem - 0.38 0.38
Total Positions 9.00 12.38 12.38
*Unfunded positions can only be utilized with one-time funding to address strategic plan priority initiatives 32 Community Development Department
FINANCIALS
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
Expenditures by Category
Personnel 11,365,964$ 12,051,683 $ 12,409,482 $ Operating 4,937,415 3,881,515 3,906,150 Indirect & Overhead 1,509,794 1,773,687 1,705,892 Total Expenditures 17,813,173$ $ 17,706,885 $ 18,021,524 Funding Sources
General Funds 2,082,117$ 2,223,033$ 2,333,468$ Special Revenue Funds 15,731,056 15,483,852 15,688,056 Total Funding Sources 17,813,173$ $ 17,706,885 $ 18,021,524 33 Community Development Department
FULL TIME EQUIVALENT (FTE) PERSONNEL
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
Community Development Director 1.00 1.00 1.00 Administrative Assistant 4.00 4.00 4.00 Administrative Technician 1.00 1.00 1.00 Associate Planner 6.00 6.00 6.00 Building Inspector I/II 7.00 7.00 7.00 Business Manager 1.00 1.00 1.00 Code Enforcement Manager 1.00 1.00 1.00 Code Enforcement Officer I/II 3.00 3.00 3.00 Deputy Building Official 1.00 1.00 1.00 Deputy Community Development Director 1.00 1.00 1.00 Deputy Community Development Director/Building Official 1.00 1.00 1.00 Development Review Technician 5.00 5.00 5.00 Housing and Neighborhood Services Manager 1.00 1.00 1.00 Housing Specialist I/II 3.00 3.00 3.00 Inspection Supervisor 1.00 1.00 1.00 Managing Arborist 1.00 1.00 1.00 Management Analyst I/II - 1.00 1.00 Office Assistant I/II 2.00 2.00 2.00 Permit Center Supervisor 1.00 1.00 1.00 Plan Check Supervisor 1.00 1.00 1.00 Plan Check Engineer 5.00 5.00 5.00 Planning Manager 1.00 1.00 1.00 Principal Planner 2.00 2.00 2.00 Senior Business Systems Analyst 1.00 - - Senior Code Enfocement Officer 1.00 1.00 1.00 Senior Development Review Technician 2.00 2.00 2.00 Senior Mangement Analyst 1.00 1.00 1.00 Senior Planner 2.00 2.00 2.00 Total Merit 57.00 57.00 57.00 Total Per Diem 0.92 0.96 0.96 Total Positions 57.92 57.96 57.96 34 Finance
FINANCIALS
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
Expenditures by Category
Personnel 3,428,138$ 3,785,126 $ 3,896,730 $ Operating 767,800 781,000 797,000 Indirect & Overhead 361,688 305,472 398,089 Total Expenditures 4,557,626$ $ 4,871,598 $ 5,091,819 Funding Sources
General Funds 4,396,466$ 4,640,623$ 4,853,915$ Special Revenue Funds 78,821 86,972 89,581 Enterprise Funds 82,339 144,003 148,323 Total Funding Sources 4,557,626$ $ 4,871,598 $ 5,091,819
FULL TIME EQUIVALENT (FTE) PERSONNEL
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
Finance Director 1.00 1.00 1.00 Accountant I/II 2.00 2.00 2.00 Accounting Assistant I/II 4.00 4.00 4.00 Accounting Manager 1.00 1.00 1.00 Budget Manager 1.00 1.00 1.00 Deputy Finance Director 1.00 1.00 1.00 Finance Specialist I/II 1.00 1.00 1.00 Payroll Analyst I/II - 1.00 1.00 Payroll Supervisor 1.00 1.00 1.00 Payroll Technician I/II 2.00 1.00
1.00 Senior Accountant 2.00 2.00 2.00 Senior Accounting Assistant 2.00 2.00 2.00 Senior Management Analyst 1.00 1.00 1.00 Total Merit 19.00 19.00 19.00 Total Per Diem - - - Total Positions 19.00 19.00 19.00 35 Human Resources
FINANCIALS
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
Expenditures by Category
Personnel 2,652,593$ 3,079,169 $ 3,216,558 $ Operating 4,579,348 5,067,348 5,102,348 Indirect & Overhead 144,282 134,895 144,569 Total Expenditures 7,376,223$ $ 8,281,412 $ 8,463,474 Funding Sources
General Funds 2,766,969$ 2,818,540 $ 2,933,703 $ Enterprise Funds 138,700 161,174 166,009 Internal Service Funds 4,470,554 5,301,699 5,363,762 Total Funding Sources 7,376,223$ $ 8,281,412 $ 8,463,474
FULL TIME EQUIVALENT (FTE) PERSONNEL
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
Human Resources Director 1.00 1.00 1.00 Deputy Human Resources Director 1.00 1.00 1.00 Human Resources Analyst 1.00 1.00 1.00 Human Resources Technician * 4.00 4.00 3.00 Human Resources Information System Analyst I/II 1.00 1.00 1.00 Senior Human Resources Analyst 4.00 4.00 4.00 Senior Human Resources Analyst Risk Manager 1.00 1.00 1.00 Total Merit 13.00 13.00 12.00 Total Per Diem 0.48 0.96 0.96 Total Positions 13.48 13.96 12.96 *1.00 FTE HR Technician is a 2 year limited term position starting FY 2025/26. 36 Information Technology
FINANCIALS
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
Expenditures by Category
Personnel 3,276,094$ 3,358,775 $ 3,424,271 $ Operating 1,911,964 1,882,516 1,857,527 Indirect & Overhead 212,600 271,114 624,295 Capital Outlay 17,680 - - Total Expenditures 5,418,338$ $ 5,512,406 $ 5,906,093 Funding Sources
General Funds 5,283,528$ 5,354,423$ 5,743,371$ Special Revenue Funds 134,810 157,983 162,722 Total Funding Sources 5,418,338$ $ 5,512,406 $ 5,906,093
FULL TIME EQUIVALENT (FTE) PERSONNEL
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
Information Technology Director 1.00 1.00 1.00 Consulting And Applications Manager 1.00 1.00 1.00 Customer Service Manager 1.00 1.00 1.00 GIS Coordinator 1.00 1.00 1.00 GIS Technician I/II 1.00 1.00 1.00 IS Support Technician I/II 2.00 2.00 2.00 Network Analyst 1.00 1.00 1.00 Senior IS Support Technician 1.00 1.00 1.00 Senior Systems Analyst 1.00 1.00 1.00 Systems Analyst I/II 2.00 2.00
2.00 Systems And Network Manager 1.00 1.00 1.00 Web Specialist 1.00 1.00 1.00 Total Merit 14.00 14.00 14.00 Total Per Diem 0.23 0.23 0.23 Total Positions 14.23 14.23 14.23 37 Library
FINANCIALS
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
Expenditures by Category
Personnel 6,560,289$ $ 6,763,230 $ 6,979,645 Operating 2,531,484 2,386,066 2,465,006
Indirect & Overhead 932,676 770,993 1,002,209
Total Expenditures 10,024,449$ $ 9,920,290 $ 10,446,859 Funding Sources
General Funds 10,024,449$ $
9,920,289 $ 10,446,859
Total Funding Sources $
Full Time Equivalent (FTE) Personnel
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
City Librarian 1.00 1.00 1.00
Administrative Technician 1.00 1.00 1.00
Community Services Coordinator 1.50 1.50 1.50
Deputy City Librarian 1.00 1.00 1.00
Executive Assistant 1.00 1.00 1.00
Librarian I/II 9.63 9.63 9.63
Library Assistant I/II 9.75 9.75 9.75
Library Technology Specialist 1.00 1.00 1.00
Literacy Program Coordinator 1.00 1.00 1.00
Literacy Specialist 0.63 0.63 0.63
Senior Accounting Assistant 1.00 1.00 1.00
Senior Library Assistant 3.00 3.00 3.00
Senior Management Analyst 1.00 1.00 1.00
Supervising Librarian 3.00 3.00 3.00
Supervising Library Assistant 1.00 1.00 1.00
Total Merit 36.50 36.50 36.50
Total Per Diem 13.23 14.73 14.73
Total Positions 49.73 51.23 51.23
10,024,449 $ 9,920,290 $ 10,446,859 38 Parks and Recreation
FINANCIALS
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
Expenditures by Category
Personnel 12,938,837$ 13,936,461 $ 14,287,487 $ Operating 8,437,701 9,008,528 9,146,442
Indirect & Overhead 2,117,151 2,130,071 2,769,109
Capital Outlay 26,000 - -
Total Expenditures 23,519,690$ $ 25,075,060 $ 26,203,038 Funding Sources
General Funds 23,519,690$ 25,042,604$ 26,169,608$ Special Revenue Funds
18,806 19,370
Enterprise Funds 13,650 14,060
Total Funding Sources 23,519,690$ $ 25,075,060 $ 26,203,038 -
-
39 Parks and Recreation
FULL TIME EQUIVALENT (FTE) PERSONNEL
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
Parks and Recreation Director 1.00 1.00 1.00 Administrative Technician 3.00 3.00 3.00 Business Manager 1.00 1.00 1.00 Communications & Public Relations Analyst 1.00 1.00 1.00 Community Services Coordinator 9.00 9.00 9.00 Community Services Manager 1.00 1.00 1.00 Community Services Section Manager 3.00 3.00 3.00 Community Services Supervisor 6.00 6.00 6.00 Custodian 1.00 1.00 1.00 Deputy Parks and Recreation Director 1.00 1.00 1.00 Golf Course Maintenance Supervisor 1.00 1.00 1.00 Golf Equipment Maintenance Specialist 1.00 1.00 1.00 Golf Services Manager 1.00 1.00 1.00 Irrigation Specialist 2.00 2.00 2.00 Landscape Laborer / Landscape Mainenance Worker I/II 18.00 18.00 18.00 Lead Teacher 2.00 2.00 2.00 Managing Arborist 1.00 1.00 1.00 Park and Landscape Maintenance Supervisor 1.00 1.00 1.00 Park and Landscape Manager 1.00 1.00 1.00 Senior Park Landscape Maintenance Worker 3.00 3.00 3.00 Senior Park Ranger 1.00 1.00 1.00 Senior Program Assistant 5.00 5.00
5.00 Senior Project Manager 1.00 1.00 1.00 Tree Maintenance Specialist 1.00 1.00 1.00 Total Merit 66.00 66.00 66.00 Total Per Diem 50.17 47.38 47.38 Total Positions 116.17 113.38 113.38 40 Police
FINANCIALS
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
Expenditures by Category
Personnel 57,488,167$ 58,328,370 $ 59,492,702 $ Operating 9,841,303 10,384,114 9,660,958 Indirect & Overhead 990,552 684,903 999,199 Capital Outlay 77,000 - - Total Expenditures 68,397,022$ $ 69,397,387 $ 70,152,859 Funding Sources
General Funds 66,284,980$ 67,365,783$ 69,545,050$ Special Revenue Funds 2,112,042 2,031,604 607,809 Total Funding Sources 68,397,022$ $ 69,397,387 $ 70,152,859 41 Police
FULL TIME EQUIVALENT (FTE) PERSONNEL
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
Chief of Police 1.00 1.00 1.00 Administrative Assistant 2.00 2.00 2.00 Administrative Technician 1.00 1.00 1.00 Business Manager 1.00 1.00 1.00 Community Service Officer I/II 6.00 6.00 6.00 Dispatch Services Supervisor 2.00 2.00 2.00 Dispatcher 12.00 12.00 12.00 Executive Assistant 1.00 1.00 1.00 Management Analyst I/II 1.00 1.00 1.00 Police Captain 2.00 2.00 2.00 Police Communications & Public Relations Analyst 1.00 1.00 1.00 Police Digital Forensic Specialist 1.00 1.00 1.00 Police Evidence Analyst 1.00 1.00 1.00 Police Lieutenant 6.00 6.00 6.00 Police Officer 90.00 90.00 90.00 Police Records Specialist I/II 5.00 5.00 5.00 Police Records Supervisor 2.00 2.00 2.00 Police Sergeant 17.00 17.00 17.00 Police Support Services Analyst 1.00 1.00 1.00 Police Technical Services Administrator 1.00 1.00 1.00 Real Time Information Center Coordinator 1.00 1.00 1.00 Senior Business Systems Analyst 1.00 1.00 1.00 Senior Community Service Officer 1.00 1.00 1.00 Senior Dispatcher 2.00 2.00 2.00 Senior Police Records Specialist 2.00 2.00 2.00 Senior Management Analyst 1.00 1.00 1.00 Vechicle Abatement Officer 2.00 2.00 2.00 Total Merit 164.00 164.00 164.00 Total Per Diem 11.96 13.10 13.10 Total Positions 175.96 177.10 177.10 42 Public Works
FINANCIALS
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
Expenditures by Category
Personnel 26,277,350$ 28,323,142 $ 28,927,204 $ Operating 27,874,388 32,950,168 31,989,596 Indirect & Overhead 3,699,749 5,705,929 4,129,776 Capital Outlay 1,807,800 - - Total Expenditures 59,659,287$ $ 66,979,239 $ 65,046,576 Funding Sources
General Funds 10,016,466$ 11,690,968$ 11,763,696$ Special Revenue Funds 6,373,298 7,630,239 6,261,487 Enterprise Funds 37,024,169 41,041,741 40,282,133 Internal Service Funds 6,245,354 6,616,290 6,739,259 Total Funding Sources 59,659,287$ $ 66,979,239 $ 65,046,576 43 Public Works
FULL TIME EQUIVALENT (FTE) PERSONNEL
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
Public Works Director 1.00 1.00 1.00 Administrative Assistant 5.00 5.00 5.00 Administrative Technician 2.00 2.00 2.00 Associate Engineer 14.00 14.00 14.00 Associate Transportation Planner 2.00 2.00 2.00 Building Maintenance Supervisor 1.00 1.00 1.00 Business Manager 1.00 1.00 1.00 Calibration Technician 1.00 1.00 1.00 Central Services Worker 1.00 1.00 1.00 Construction Inspector I/II 4.00 4.00 4.00 Deputy Director 2.00 2.00 2.00 Downtown Coordinator 1.00 1.00 1.00 Engineer Manager 4.00 4.00 4.00 Engineering Technician I/II 5.00 5.00 5.00 Environmental Compliance Inspector 3.00 3.00 3.00 Environmental Programs Coordinator 1.00 1.00 1.00 Executive Assistant 1.00 1.00 1.00 Facilities and Fleet Services Manager 1.00 1.00 1.00 Facility Maintenance Worker 4.00 4.00 4.00 Field Maintenance Manager 1.00 1.00 1.00 Fleet Services Supervisor 1.00 1.00 1.00 Instrument Control Technician 1.00 1.00 1.00 Laboratory Analyst I/II/III 4.00 4.00 4.00 Laboratory Supervisor 1.00 1.00 1.00 Laborer 1.00 1.00 1.00 Maintenance Planner 2.00 2.00 2.00 Maintenance Worker I/II 26.00 26.00 26.00 Management Analyst I/II 3.00 3.00 3.00 Principal Transportation Planner 1.00 1.00 1.00 Project Manager I/II 3.00 3.00 3.00 Public Works Maintenance Leadworker 3.00 3.00 3.00 Public Works Supervisor 4.00 4.00 4.00 Pump Station Mechanic I/II 3.00 3.00 3.00 Pump Station Mechanic III 1.00 1.00 1.00 Regulatory Complaince Manager 1.00 1.00 1.00 Senior Engineer 7.00 7.00 7.00 Senior Facility Maintenance Worker 3.00 3.00 3.00 Senior I&C Technician 1.00 1.00 1.00 Senior Management Analyst 1.00 1.00 1.00 Solid Waste and Recycling Program Coordinator 1.00 1.00 1.00 44 Public Works
FULL TIME EQUIVALENT (FTE) PERSONNEL
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
Solid Waste Technician 2.00 2.00 2.00 Traffic and Light Technician 2.00 2.00 2.00 Traffic Safety Worker 3.00 3.00 3.00 WWTP Electrical Technician 2.00 2.00 2.00 WWTP Maintenance Superintendent 1.00 1.00 1.00 WWTP Manager 1.00 1.00 1.00 WWTP Mechanic I/II 6.00 6.00 6.00 WWTP Mechanic III 2.00 2.00 2.00 WWTP Operations Superintendent 1.00 1.00 1.00 WWTP Operator In-Training I/II 10.00 10.00 10.00 WWTP Operator III 5.00 5.00 5.00 WWTP Shift Supervisor 2.00 2.00 2.00 Waste Management Supervisor 1.00 1.00 1.00 Total Merit 161.00 161.00 161.00 Total Per Diem 6.04 5.00 5.00 Total Positions 167.04 166.00 166.00 45 Non-Departmental
Financials
2025-26
ADJUSTED
BUDGET
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
Expenditures by Category
Operating 68,750,147$ 70,901,090 $ 63,852,369 $ Indirect & Overhead 647,702 551,057 646,387 Debt 34,688,132 40,214,927 41,650,422 Total Expenditures 104,085,981$ 111,667,074$ 106,149,179$ Funding Sources
General Funds 6,371,556$ 7,099,276$ 7,173,596$ Special Revenue Funds 5,958,707 5,815,027 5,864,686 Enterprise Funds 28,537,571 33,371,481 34,753,535 Internal Serivce Funds 63,468,147 65,381,290 58,357,361 Total Funding Sources 104,335,981$ 111,667,074$ 106,149,179$ 46 Fund
Information
47 Special Revenue
48 Police Grants and Safety Fund
Police Grants & Safety Fund 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
Beginning Fund Balance 572$ 896$ 961$ 378$
Revenues
Interes
t Earnings $ 196 $ - $ - $ -
Asset Seizure 144 300 - -
State Grants 819 805 656 420
Other 530 337 603 -
Total Revenues 1,689$ 1,442$ 1,259$ 420$ Expenditures
Personnel 979$ 1,
093$ 997$ 411$
Operating 386 281 768 1
Capital Outlay - 2 77 -
Total Expenditures 1,365$ 1,377$ 1,842$ 412$ Ending Fund Balance 896$ 961$ 378$ 387$
Values are shown in thousands.
Overview
The program seeks, applies for, and directs funds received from various grants and other sources to the different areas of police services, within the limitations established by the various granting/originating agencies. The program is currently made up of grant funds from the following sources:
-The Citizens' Options for Public Safety Program’s Supplemental Law Enforcement Services Fund (COPS/SLESF) grant partially covers the costs of two traffic officer positions. This grant was first funded in 1996. While the COPS program is intended to be on-going and permanent, there is no guarantee that continued funding will occur.
-The State Office of Traffic Safety (OTS) provides grants to both the San Mateo Police Department and regionally to San Mateo County. This grant will continue annually and is the source of funding to specialized traffic enforcement, DUI reduction, and pedestrian/bicycle safety enforcement. -US Department of Justice Edward Byrne Memorial Justice Assistance Grant (JAG) funds which are applied for annually and purposed towards various law- enforcement related objectives
-State Department of Justice Proposition 56 Tobacco Grant Program which funds a Police Officer position through Fiscal Year 2027/2028, dedicated to reducing and preventing the use of tobacco products in our community with a focus on local retailer enforcement, including enforcement of flavored tobacco bans. -Board of State and Community Corrections Byrne State Crisis Intervention Program (SCIP) funds purposed towards a Community Service Officer position which serves as a Threat of Gun Violence Expert focused on implementing Project Safeguard (Schools and Families Engaged for Gun Use Awarenessand Risk Detection) through Fiscal Year 2026/2027.
-Board of State and Community Corrections Organized Retail Theft Prevention Grant Program funds which San Mateo receives as a sub-recipient of a primary grant awarded to the City of Daly City. 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. -State and Federal Asset Forfeiture funds. The source of these funds are assets which have been confiscated by the State or Federal Government, typically the proceeds or instruments of crime.
Ongoing Responsibilities
-Maintain accurate expenditure records on the disbursement of funds. -Provide the granting/originating agencies with requested reports. -Develop programs needed in the community that are in line with the funding guidelines. -Monitor the programs developed to evaluate their value to the community. -Ensure that all of the funds are properly managed.
Key Program Initiatives
Identify best ongoing resources for research and identification of new grant opportunities and provide added value to the community. 49 Solid Waste Fund
Solid Waste 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 14,420$ 19,046$ 18,593$ 16,019$ 14,253$ 13,238$ 12,153$ Revenues
Interest Earnings 819$ -$ 160$ 160$ 160$ 160$ 160$ Grants 361 26 56 56 56 56 56 Service Charges 3,301 3,261 2,672 2,707 3,194 3,231 3,270 Other Revenues 4,660 1,663 80 80 80 80 80 Total Revenues 9,140$ 4,951$ 2,968$ 3,003$ 3,490$ 3,527$ 3,566$ Expenditures
Personnel 2,136$ 1,932$ 2,687$ 2,766$ 2,849$ 2,933$ 3,021$ Operating 1,307 1,155 1,560 1,654 1,307 1,330 1,354 Indirect and Overhead Charges 305 313 330 339 339 339 339 Capital Outlay 0 - 965 10 10 10 10 Total Expenditures 3,747$ 3,400$ 5,542$ 4,769$ 4,505$ 4,612$ 4,724$
Transfer Out 767$ 2,004$ -$ -$ -$ -$ -$ Ending Fund Balance 19,046$ 18,593$ 16,019$ 14,253$ 13,238$ 12,153$ 10,995$ 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 over 200 curb miles of streets swept, as well as cleaning and maintaining 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 $150,000 per year that the fund receives through the garbage collection provider for operating and maintenance expenses related to the trash load reduction requirements of the Municipal Regional Plan issued by the Regional Quality Control Board. Fund balance has accumulated in this fund as expenditures have been lower than expected over the past several years and due to Construction and Demolition (C&D) deposit forfeitures. Going forward, services for street cleaning and waste management will continue to be evaluated to ensure that the level of support being provided is sufficient. Service charges will continue to be evaluated and adjusted as necessary to ensure alignment with expected expenditures and appropriate reserve levels. 50 HOME Fund
HOME Fund 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
Beginning Fund Balance 498$ 522$ 601$ 618$ Revenues
Loan Paym
ents $ 11 $ 79 $ 15 $ 15 Grants 40 13 13 13 Total Revenues 51$ 92$ 28$ 28$ Expenditures
Pers
onnel 28$ 13$ -$ -$ Operating - - 10 10 Total Expenditures 28$ 13$ 10$ 10$ Ending Fund Balance 522$ 601$ 618$ 636$ 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.
51 Community Development Block Grant Fund
Community Development Block Grant Fund 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
Beginning Fund Balance 391$ 354$ 694$ 638$ Revenues
Inter
governmental Contributions $ 227 $ 766 $ 803 $ 732 Loan Payments 16 8 8 8 Total Revenues 243$ 774$ 811$ 740$ Expenditures
Pers
onnel 39$ 35$ -$ -$ Operating 223 286 397 391 Indirect & Overhead Charges 19 - 20 20 Total Expenditures 280$ 321$ 416$ 411$ Transfer Out -$ 113$ 450$ 450$ Ending Fund Balance 354$ 694$ 638$ 516$ Values are shown in thousands.
The Community Development Block Grant (CDBG) Program is a federal grant from the Department of 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 fundsare held by HUD and drawn down on a reimbursement basis to the City.
CDBG funds will be used for Community Funding grants to local social service agencies who serve lower income residents, facility repairs for local service agencies, minor home repairs to lower income homeowners, pedestrian and bike improvements in North Shoreview and North Central neighborhoods, and program administration.
52 Advanced Planning
Advanced Planning 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 5,841$ 6,510$ 6,391$ 6,744$ 7,060$ 7,137$ 7,175$ Revenues
Interest Earnings $ 280 $ 130 $ 150 $ 150 $ 150 $ 150 $ 150 General
Plan Maintenance Fee 1,516 1,800 1,800 1,800 1,800 1,800 1,800 State Grants 93 300 500 500 300 300 300
Total Revenues 1,890$ 2,230$ 2,450$ 2,450$ 2,250$ 2,250$ 2,250$ Expenditures
Personnel 795$ 1,402$ 1,117$ 1,150$ 1,184$ 1,218$ 1,254$ Operating 289 807 835 835 835 835 835
Indirect and Overhead Charges 137 141 145 150 154 159 163 Total Expenditures 1,221$ 2,349$ 2,097$ 2,134$ 2,173$ 2,212$ 2,253$ Ending Fund Balance 6,510$ 6,391$ 6,744$ 7,060$ 7,137$ 7,175$ 7,173$ Values are shown in thousands.
The Advanced Planning Fund accounts for the General Plan maintenance fee collected through building permits and expenditures for activities related to preparing long- term pl
ans 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. Advanced Planning staff continues to monitor passage and implementation of new State legislation, the next iteration of the Sust
ainable Communities Strategy (Plan Bay Area) by t he Associati on 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, the implementation of t he General Plan Update and revision of the City’s various specific plans and zoning code will be funded by the Advanced Planning Fund. 53 Construction Services
Construction Services 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 26,934$ 23,699$ 23,121$ 17,768$ 13,046$ 8,649$ 4,494$ Revenues
Interest Earnings $ 1,116 $ 450 $ 400 $ 350 $ 300 $ 250 $ 200 Plan Check Fees 3,275 4,052 3,400 3,625 3,749 3,879 4,015 Permit Fees 4,960 5,202 5,392 5,892 6,179 6,480 6,797 Other Fees 515 753 592 620 651 682 716 Total Revenues 9,866$ 10,456$ 9,784$ 10,487$ 10,878$ 11,291$ 11,727$ Expenditures
Personnel 9,206$ 7,226$ 11,283$ 11,395$ 11,507$ 11,621$ 11,737$ Operating 1,117 1,155 1,542 1,577 1,598 1,620 1,643 Indirect & Overhead Charges 1,471 1,733 1,762 1,668 1,579 1,595 1,610 Total Expenditures 11,794$ 10,115$ 14,586$ 14,639$ 14,685$ 14,836$ 14,990$ Transfer Out 1,306$ 920$ 550$ 570$ 590$ 610$ 630$ Ending Fund Balance 23,699$ 23,121$ 17,768$ 13,046$ 8,649$ 4,494$ 602$ Values are shown in thousands.
The Construction Services Fund accounts for building permit revenues and expenditures for activities related to the review of private 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 buildings and 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. 54 Gas Tax Fund
Gas Tax 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 1,768$ 2,889$ 2,683$ 1,888$ 2,045$ 2,255$ 2,539$ Revenues
State Gas Tax $ 1,965 $ 2,036 $ 2,072 $ 2,113 $ 2,155 $ 2,198 $ 2,242 Gas Tax In Lieu of Prop 42 1,008 1,013 1,034 1,054 1,075 1,097 1,119 Interest Earnings 113 40 40 40 40 40 40
Total Revenues 3,086$ 3,089$ 3,145$ 3,207$ 3,270$ 3,335$ 3,401$ Transfer Out 1,966$ 3,295$ 3,941$ 3,051$ 3,061$ 3,051$ 3,051$ Ending Fund Balance 2,889$ 2,683$ 1,888$ 2,045$ 2,255$ 2,539$ 2,890$ 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. As such, recent hikes in gas prices resulting from global conflict may only have minor impacts on the gas tax revenue, if any.
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 January 2026 estimates from the State Department of Finance (DOF), the City anticipates receiving $3.1 million in gas tax revenues in both FY 2026-27 and FY 2027-28.
The five-year plan maintains the annual transfer to the General Fund, and makes contributions to the Capital Improvement Projects Fund to fund street reconstruction and rehabilitation projects. As more information becomes available on the impacts to gasoline tax revenues, this plan will be updated accordingly. 55 City Housing
City Housing 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
Beginning Fund Balance 1,198$ 1,424$ 1,563$ 1,545$ Revenues
Housing Fees $ - $ - $ 50 $ 50
Miscellaneous 227 200 210 210
Total Revenues 227$ 200$ 260$ 260$
Expenditures
Contribution to Other Agencies -$ 33$ 47$ 47$
Contribution to First Time Home Buyers - - 180 180
Operating - 28 52 47
Total Expenditures -$ 61$ 279$ 274$
Ending Fund Balance 1,424$ 1,563$ 1,545$ 1,531$ Values are shown in thousands.
The City Housing Fund captures a variety o f 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 c ollected 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. Funds are set aside to assist first-time homebuyers with purchasing below market-rate housing units. Additionally, funds will be used to pay for the City membership fee for The Housing Endowment and Regional Trust of San Mateo County (HEART), the countywide housing trus t fund, and for revisions
to the City's BMR documents.
56 Low and Moderate Income Housing Asset Fund
Low and Moderate Income Housing Asset 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
Beginning Fund Balance 5,135$ 5,448$ 5,381$ 5,147$ Revenues
Interest Earnings $ 190 $ 80 $ 80 $ 80
Loan Payments 180 374 214 214
Total Revenues 370$ 454$ 294$ 294$
Expenditures
Personnel 51$ 297$ 249$ 257$
Operating 6 225 279 279
Total Expenditures 57$ 521$ 528$ 536$
Ending Fund Balance 5,448$ 5,381$ 5,147$ 4,905$ Values 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 thes
e funds to support housing p rojects that assist households whose incom e ranges up to 80% of median income. The fund also consists of administrativ
e costs to monitor existing housing projects, manage the existing loan portfolio, support homeless programs, and plan for new projects. This fund supports the City's Emergency Rental Assistance Program, administered by Samaritan House, and a portion of the Homeless Outreach Team (HOT).
57 Parks and Recreation Revenue Fund
Parks and Recreation Revenue Fund 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 19,442$ 18,708$ 1,330$ 535$ 491$ 721$ 900$ Revenues
Interest Earnings $ 802 $ 187 $ 200 $ 200 $ 200 $ 200 $ 200 P&R Tax and Fees 266 (21) -
1,500 2,600 3,000 2,500
Total Revenues 1,068$ 166$ 200$ 1,700$ 2,800$ 3,200$ 2,700$ Expenditures
Operating 18$ 18$ 19$ 19$ 20$ 21$ 21$ Total Expenditures 18$ 18$ 19$ 19$ 20$ 21$ 21$ Transfer Out 1,785$ 17,526$ 976$ 1,725$ 2,550$ 3,000$ 1,600$ Ending Fund Balance 18,708$ 1,330$ 535$ 491$ 721$ 900$ 1,979$ 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 parksand recreation related projects through a transfer to the Capital Improvement Projects Fund.
Major transfers planned for 2026-27 include contributions towards synthetic field replacement, golf bunkers, and irrigaton controller upgrades. Transfers planned beyond 2026-27 include repairs to the Japanese Garden and playground updates for Trinta Park, Washington Park, and Martin Luther King Jr. Park. If the estimated fees do not come to fruition, we will not be able to transfer as much as planned to the Capital Improvement Projects Fund. We will adjustour plan in the future years to align spending with funding capacity.
58 Traffic Impact Fee Fund
Traffic Impact Fee 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 56$ (1,754)$ (3,288)$ (1,288)$ (1,388)$ (1,088)$ 212$ Revenues
Traffic Impact Fees 10$ 1,690$ 2,000$ 100$ 1,000$ 2,000$ 300$ Total Revenues 10$ 1,690$ 2,000$ 100$ 1,000$ 2,000$ 300$ Transfer Out 1,819$ 3,224$ -$ 200$ 700$ 700$ 400$ Ending Fund Balance (1,754)$ (3,288)$ (1,288)$ (1,388)$ (1,088)$ 212$ 112$ Values are shown in thousands.
The Traffic Impact Fee Fund accounts for revenues that are collected to fund various capital projects to mitigate the traffic related cumulative impacts of new development.
Revenues from this fund have contributed to traffic calming projects, construction costs of new traffic signals, and infrastructure projects such as the 25th Ave. In the five- year Capital Improvement Plan, transfers are being made to fund the infrastructure projects such as the 25th Ave. Grade Separation Project and the Railroad Avenue Wall Enhancement.
Since the Traffic Impact Fees are closely related to the status of new development projects, this revenue source is difficult to 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. 59 Commercial Linkage Fee
Commercial Linkage Fee 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 3,405$ 3,552$ 3,795$ 4,379$ 8,462$ 8,045$ 8,628$ Revenues
Interest Earnings 152$ 260$ 100$ 100$ 100$ 100$ 100$ Commercial Linkage Fee - - 500 4,000 500 500 500
Total Revenues 152$ 260$ 600$ 4,100$ 600$ 600$ 600$ Transfer Out
Operating -$ 11$ 11$ 11$ 1,011$ 11$ 11$ Indirect and Overhead Charges 5 5 6 6 6 6 6
Total Expenditures 5$ 16$ 17$ 17$ 1,017$ 17$ 17$ Ending Fund Balance 3,552$ 3,795$ 4,379$ 8,462$ 8,045$ 8,628$ 9,210$ Values are 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 w ho 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 tr ansfer to the Capital Improvement Projects Fund, and this plan will be
updated accordingly as needed.
60 Road Maintenance and Rehabilitation Account
Road Maintenance and Rehabilitation
Account
2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 7,493$ 9,881$ 5,148$ 5,314$ 5,570$ 5,917$ 6,258$ Revenues
Road Maint.
and Rehabilitation 2,885$ 2,798$ 2,966$ 3,055$ 3,147$ 3,241$ 3,339$ Interest Earnings 402 200 200 200 200 200 200
Total Revenues 3,287$ 2,998$ 3,166$ 3,255$ 3,347$ 3,441$ 3,539$ Transfer Out 898$ 7,731$ 3,000$ 3,000$ 3,000$ 3,100$ 3,100$ Ending Fund Balance 9,881$ 5,148$ 5,314$ 5,570$ 5,917$ 6,258$ 6,697$ 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 allow for more efficient reporting on ho w these funds are being utilized.
Based on the State Department of Finance (DOF) estimates, staff anticipates that the RMRA revenues will b e approximately $2.97 million for FY 2026-27. Accumulated resources from the RMRA revenues will be utilized to fund street reconstruction and rehabilitatio n projects through a transfer to the Capital
Improvement Projects (CIP) Fund. I n the five-year plan, the annual transfers to CIP are estimated at an average of $3.04 million each year.
$
61 Permanent Local Housing Allocation Fund
Permanent Local Housing Allocation Fund 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
Beginning Fund Balance 10$ 24$ 25$ 48$
Revenues
Interest Earnings $ 14 $ - $ - $ -
State Grants 353 225 240 240
Total Revenues 367$ 225$ 240$ 240$
Expenditures
Personnel 1$ 9$ -$ -$
Operating 352 215 217 217
Total Expenditures 353$ 223$ 217$ 217$
Ending Fund Balance 24$ 25$ 48$ 71$
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 will continue 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 homesharing pr ogram, supportive services
at t he Montara affordable housing development, and a rapid rehousing program. 62 Landfill Bond
Landfill Bond 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
Beginning Fund Balance 4,490$ 4,497$ 4,367$ 4,274$ Revenues
Interest Earnings 193$ 80$ 100$ 100$
Garbage Collection Surcharge - - - -
Total Revenues 193$ 80$ 100$ 100$
Expenditures
Personnel 45$ 47$ 47$ 49$
Operating 90 163 66 53
Total Expenditures 135$ 210$ 113$ 102$
Transfer Out 51$ -$ 80$ -$
Ending Fund Balance 4,497$ 4,367$ 4,274$ 4,272$ Values are shown in thousands.
The Landfill Fund was initially set up as a debt service fund to account for debt service payments for t he landfill revenue bonds. Since the landfill bonds have been paid off, starting in fiscal year 2024-25, the Landfill Fund has been reclassified to a special revenue fund.
The Landfill Fund will continue to maintain a fund balance that is sufficient to meet the City's landfill closure and post-closu re obligations. 63 Debt Service
64 Street & Flood Control Project Bond
Street & Flood Control Project Bond 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
Beginning Fund Balance 30$ 27$ 187$ 161$
Revenues
Special Assessments $ - $ 170 $ 175 $ 180
Interes
t Earnings $ 1 $ - $ - $ -
Total Revenues 1$ 170$ 175$ 180$
Expenditures
Operating 65$ 67$ 69$ 71$
Debt Service 2,629 2,632 2,633 2,631
Total Expenditures 2,695$ 2,699$ 2,702$ 2,702$ Transfer In 2,690$ 2,690$ 2,500$ 2,500$ Ending Fund Balance 27$ 187$ 161$ 138$
Values are shown in thousands.
The Street and Flood Control Projects Bond Fund is a debt service fund that accounts for debt service payments on lease reven ue 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 Nort
h Shoreview neighborhood as it relates to the flood control improvements. Assessment levies are collected to pay p art of the annual debt. The remaining debt service is funded by the Measure S. 65 General Obligation Bonds
General Obligation Bonds 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
Beginning Fund Balance 7,562$ 7,457$ 6,863$ 6,293$ Revenues
Interest Earnings $ 319 $ 150 $ 125 $ 100
Proper
ty Taxes 1,699 1,391 1,436 1,484
Total Revenues 2,019$ 1,541$ 1,561$ 1,584$ Expenditures
Operating $ 62 $ 64 $ 65 $ 67
Debt Service 2,062 2,072 2,065 2,078
Total Expenditures 2,124$ 2,135$ 2,131$ 2,145$ Ending Fund Balance 7,457$ 6,863$ 6,293$ 5,732$ 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 of all real and personal property of the city. Based on the current fiscal year's total assessed value of $41 billion, San Mateo's legal debt limit was $6.2 billion, only at
0.16%
of its legal debt limit. This statutory limitations applies only to bonded indebtedness of the City payable from proceeds of taxes levied on a property. For San Mateo, this includes only the general obligation bonds. 66 2% Hotel Tax Fund
2% Hotel Tax 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 179$ 364$ 406$ 309$ 240$ 201$ 141$ Revenues
Interest Earnings 14$ 0$ -$ -$ -$ -$ -$
Transient Occupancy Tax 784 630 687 700 714 729 743
Total Revenues 797$ 630$ 687$ 700$ 714$ 729$ 743$ Expenditures
Operating 135$ 148$ 119$ 119$ 119$ 119$ 129$
Debt Service 828 790 865 900 935 970 1,010
Total Expenditures 962$ 938$ 984$ 1,019$ 1,054$ 1,089$ 1,139$ Transfer In 350$ 350$ 200$ 250$ 300$ 300$ 300$
Ending Fund Balance 364$ 406$ 309$ 240$ 201$ 141$ 45$ Values are shown in thousands.
The 2% Hotel Tax Fund accounts for the Measure C voter-approv ed 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 seen a decline is TOT revenues. Consequently, ongoing support from the General Fund, of approximately
$300,000 annually,
will be required to maintain a positive fund balance. The average variable rate of interest was below 2%, but if interest rates rise, the General Fund support estimates may need to rise. 67 Enterprise
68 Storm Water Fund
Storm Enterprise 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance -$ 3,333$ 5,768$ 5,558$ 5,621$ 5,797$ 6,085$ Revenues
Charges for Services $ 3,860 $ 4,050 $ 4,071 $ 4,193 $ 4,319 $ 4,448 $ 4,582 Interest Earnings 152 120 120 120 125 125 125
Total Revenues 4,012$ 4,170$ 4,191$ 4,313$ 4,444$ 4,573$ 4,707$ Expenditures
Personnel 587$ 240$ 384$ 395$ 407$ 420$ 432$
Operating
92 345 497 185 188 192 195
Capital - 650 145 120 122 125 128
Total Expenditures 679$ 1,235$ 1,026$ 700$ 718$ 736$ 755$ Transfer Out -$ 500$ 3,375$ 3,550$ 3,550$ 3,550$ 3,550$ Ending Fund Balance 3,333$ 5,768$ 5,558$ 5,621$ 5,797$ 6,085$ 6,487$ Values are shown in thousands.
The City of San Mateo operates and maintains a stormwater system, which provides vital services to safeguard neighborhoods from flooding and protects local waterways from pollution. The system consists of complex infras tructure 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 pollu tants 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 allowed the City Council to levy the Stormwater Fees starting in FY 2024-25, providing $3.9 million in the first fiscal year. The fees may be adjusted annually by t he Consumer Price Index (CPI) up to 3%, subject to annual approval by the City Council.
One of the first efforts resulting from the new fee is development of a new Storm Drain Master Plan, the prior version of which is over 20 years old. The new plan, which staff anticipates will be finalized at the start of Fiscal Year 2 026-27, estimates approximately $240 million in needed improve ments, including approximately $40 million in “Very High” priority projects. Staff plans to initiate design for a portion of these “Very High” priority projects in the upcoming fiscal year with $2.3 million from the Community Flood and Storm Protection Fee revenue. Additionally, $1.1 million from the fee is planned for addressing neighborhoo d flooding issues and implementing green stormwater infrastructure to capture, retain, and clean runoff in acco rdance with state and federal regulatory mandates. 2027-28
Projected
Budget
69 Sewer Fund
Sewer Fund (CASH BASIS) 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 184,575$ 301,950$ 332,426$ 339,562$ 334,910$ 331,423$ 329,846$ Revenues
Interest Earnings 13,100$ 5,003$ 5,000$ 5,000$ 5,000$ 5,000$ 5,000$ Operating Revenues 86,110 89,042 92,168 94,852 97,553 100,369 103,287 Capital Contributions from Other 25,606 3,915 9,377 9,667 9,860 10,057 10,258 Total Revenues 124,817$ 97,959$ 106,545$ 109,519$ 112,413$ 115,426$ 118,545$ Expenses
Operating and Maintenance 28,369$ 28,761$ 40,537$ 40,119$ 40,929$ 42,001$ 43,106$ Debt Service 19,030 24,593 28,333 29,727 27,746 26,897 28,390 Capital Projects 39,448 29,639 39,925 44,325 47,225 48,105 48,825 Total Expenses 86,847$ 82,994$ 108,795$ 114,170$ 115,900$ 117,003$ 120,321$ Loan Proceeds 79,405$ 15,511$ 9,386$ -$ -$ -$ -$ Ending Fund Balance 301,950$ 332,426$ 339,562$ 334,910$ 331,423$ 329,846$ 328,070$ Values are shown in thousands.
The Sewer Fund consists of the sewer collection systems, the Wast ewater Treatment Plant (WWTP), and disposal facilities serving the residents and businesses of San Mateo, Foster City, and portions of the neighboring communities of Hillsborough, Belmont, the Crystal Springs County Sanita tion District, and certain unincorporated areas of the County. The sewer enterprise system currently serves approximately 30,000 customer accounts in the City and approximately 11,000 customer accounts in Foster City and the subregional customer communities utilizing the WWTP.
The fund's financial plan consists of two elements: (1) fiscal year (FY) 2026-27 operating budget and forecast of future operatio nal needs, and (2) estimated cash inflows and outflows for sewer capital improvem ent projects (CIP) during the forecast period. The capital expenses identified in this financial plan, as well as the corresponding bond/loan proceeds, are predominantly related to the execution of the Clean Water Program, which is discussed in detail in the Capital Improvement Program section of this document. The financial plan will be continually monitored and this plan will be updated accordingly.
Background information about the Sewer Service Charge:
In 2018, the City Council adopted a five-year sewer rate structur e for fiscal years 2018-19 through 2022-23 designed to provide sufficient revenues to fund ongoing operations and capital projections. The 50/50 volumetric/fixed fee structure was implemen ted. The new rate structure introduced a fixed monthly fee to better stabilized revenue and help address revenue reductions due to increased water conservation. A recent Sewer Rate Study found that the past rate increases have put the City's sewer fund in a good financial position. Additionally, the City has been successful in getting a large amount of the Cl ean Water Program financed with low interest rate loans. As a result, only inflationary level rate increases will be required for future years. In July 2023, the Ci ty Council approved an annual sewer rate increase of 3.0% for the next five years, starting FY 2023-24 through FY 2027-28. 70 Internal Services
71 Vehicle and Equipment Replacement
Vehicle and Equipment Replacement 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 18,126$ 15,793$ 15,760$ 6,768$ 6,305$ 5,439$ 4,746$ Revenues
Interest Earnings 467$ 320$ 315$ 135$ 126$ 109$ 95$ Interfund Replacement Collection 1,844 1,839 1,900 2,000 2,100 2,200 2,300 Other Revenues 87 - - - - - - Total Revenues 2,397$ 2,159$ 2,215$ 2,135$ 2,226$ 2,309$ 2,395$ Expenses
Vehicle Replacement -$ 840$ 4,963$ 339$ 1,326$ 1,348$ 1,363$ Computer Replacement 459 84 2,830 613 1,029 566 796 Radio Replacement - - - - - - - Major Equipment Replacement 54 101 3,774 1,956 1,047 498 148 Other Capital Outlay & Depreciation 1,348 5 - - - - - Total Expenses 1,861$ 1,030$ 11,567$ 2,908$ 3,402$ 2,412$ 2,307$ Transfer In 410$ 410$ 410$ 410$ 410$ 410$ 410$ Transfer Out 1,619$ 1,572$ 50$ 100$ 100$ 1,000$ 500$ Ending Fund Balance 17,453$ 15,760$ 6,768$ 6,305$ 5,439$ 4,746$ 4,744$ Reserve for Major Building
Component Replacements 1,661$ 909$ 1,269$ 1,579$ 1,889$ 1,299$ 1,209$ Remaining Fund Balance 15,793$ 14,851$ 5,499$ 4,726$ 3,550$ 3,447$ 3,535$ 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 balance considers 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.
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 $6.8 million at the end of fiscal year 2026-27. 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 typically has a significant fund balance by nature. This is because it is designed to cover large, infrequent capital expenditures. As a result, funds will accumulate over time for replacement.
This fund collects annually from the operating departments, an important consideration to balance against the amount of available fund balance. As such, 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 unecessarily burden 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. 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. 72 Fleet and Building Maintenance
Fleet and Building Maintenance 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 196 $ 12 $ 418 $ 132 $ 232 $ 326 $ 363 $ Revenues
Charges to Dept. - Building 3,566 $ 3,816 $ 4,197 $ 4,617 $ 4,617 $ 4,617 $ 4,617 $ Charges to Dept. - Fleet 1,997 2,000 2,117 2,223 2,334 2,451 2,573 Other Revenues 1 8 8 8 8 8 8 Total Revenues 5,564 $ 5,823 $ 6,322 $ 6,847 $ 6,958 $ 7,075 $ 7,198 $ Expenses
Personnel 1,879 $ 2,186 $ 2,188 $ 2,232 $ 2,276 $ 2,322 $ 2,368 $ Operating 3,397 3,156 3,680 3,778 3,827 3,933 4,041 Indirect & Overhead 471 485 740 739 761 784 807 Total Expenses 5,747 $ 5,827 $ 6,608 $ 6,748 $ 6,864 $ 7,038 $ 7,217 $ Transfer In - $ 410$ - $ - $ - $ - $ - $ Ending Fund Balance 12 $ 418$ 132$ 232$ 326$ 363$ 344$ 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 ap propriate level of reserves. 73 Benefits Fund
Benefits 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 1,084 $ 1,621 $ 2,257 $ 2,577 $ 2,943 $ 3,356 $ 3,821 $ Revenues
Internal Service Charge - Pension 30,340 $ 31,727 $ 33,396 $ 34,100 $ 36,478 $ 36,892 $ 37,182 $ Internal Service Charge - Social
Security/Medicare 3,889 4,107 4,271 4,399 4,531 4,667 4,807 Internal Service Charge - Healthcare 10,142 11,462 11,641 12,354 13,144 13,985 14,881 Internal Service Charge - Severance Tru 1,395 1,505 1,500 1,575 1,654 1,737 1,824 Internal Service Charge - Other 3,059 3,205 3,327 3,387 3,448 3,510 3,575 Total Revenues 48,825 $ 52,005 $ 54,135 $ 55,815 $ 59,255 $ 60,792 $ 62,269 $ Expenses
Pension 30,359 $ 31,747 $ 33,396 $ 34,100 $ 36,478 $ 36,892 $ 37,182 $ Social Security/Medicare 3,889 4,170 4,271 4,399 4,531 4,667 4,807 Healthcare 10,264 11,411 11,560 12,273 13,063 13,905 14,800 Severance Trust 847
867 1,298 1,324 1,350 1,377 1,405 Other 2,929 3,174 3,289 3,353 3,419 3,486 3,555 Total Expenses 48,289$ 51,369$ 53,814$ 55,450$ 58,841$ 60,327$ 61,750$ Ending Fund Balance 1,621$ 2,257$ 2,577$ 2,943$ 3,356$ 3,821$ 4,341$ Values are shown in thousands.
The Benefits Fund accounts for the collection of funds from operating departments to cove r 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, th e 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 se verance trust, the cost is an estimate based on historical actuals, but will fluctuate annually based on different factors. Thus, to accommodate the fluctuation of ex penses 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 ha ve 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 years as the result of a number of factors. These increases will continue to put pressure on the operating funds, as a larger and larger percentage of the bu dget will be required to cover pension cost increases.
After the transfer of the City's fire operations to SMC Fire in FY 2018-19, the former fire department employees' unfunded pension liability and retiree health benefits remained the City's responsibility, as those costs are attributable to years of service to the City, with the exception of the Bureau of Fire Protection and Life Safety (Bureau). 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.
Staff continue to monitor and adjust the collection rates for futu re years in the five-year plan. The long-term forecast has th e fund building up its fund balance gradually.
Actual expenses will be analyzed over time and annual collections will be adjusted accordingly. 74 Dental Fund
Dental 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 935 $ 962 $ 1,315 $ 1,629 $ 1,944 $ 2,260 $ 2,576 $ Revenues
Internal Service Charges 843 $ 1,184 $ 1,202 $ 1,238 $ 1,275 $ 1,313 $ 1,352 $ Total Revenues 843 $ 1,184 $ 1,202 $ 1,238 $ 1,275 $ 1,313 $ 1,352 $ Expenses
Insurance Premiums 815 $ 831 $ 888 $ 923 $ 959 $ 997 $ 1,036 $ Total Expenses 815 $ 831 $ 888 $ 923 $ 959 $ 997 $ 1,036 $ Ending Fund Balance 962 $ 1,315 $ 1,629 $ 1,944 $ 2,260 $ 2,576 $ 2,892 $ 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. Expen ses 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. 75 Workers' Compensation Insurance Fund
Workers' Compensation Insurance 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Beginning Fund Balance 7,595$ 9,081$ 9,816$ 5,502$ 4,242$ 3,008$ 1,819$ Revenues
Interest Earnings 938$ 400$ 400$ 400$ 400$ 400$ 400$ Internal Service Charges 4,380 2,671 2,700 2,781 2,864 2,950 3,039 Total Revenues 5,318$ 3,071$ 3,100$ 3,181$ 3,264$ 3,350$ 3,439$ Expenses
Personnel 434$ 552$ 780$ 803$ 827$ 852$ 877$ Operating 676 743 1,003 1,003 1,033 1,045 1,057 Claims 598 913 2,500 2,500 2,500 2,500 2,500 Indirect Costs 123 127 131 135 139 143 147 Total Expenses 1,831$ 2,336$ 4,414$ 4,441$ 4,499$ 4,540$ 4,581$ Transfer Out 2,000$ -$ 3,000$ -$ -$ -$ -$ Ending Fund Balance 9,081$ 9,816$ 5,502$ 4,242$ 3,008$ 1,819$ 676$
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.
The Fund has built up a healthy balance in recent years. As such, excess fund balance of $3.0 million will be transferred to support the Comprehensive Liability Fund in fiscal year 2026-27.
When the City transferred its fire operations to San Mateo Consolidated Fire Department (SMC Fire), the department established its own Worker's Compensation Fund.
However, claims that were incurred while the Fire employees were City employees will remain in this fund and continue to be the City's responsiblility, with the exception of former Fire personnel that served in the Bureau of Fire Protection and Life Safety (Bureau), as it is a cost recovery program. While SMC Fire has paid the City for the present value of former Bureau legacy workers' compensation, which reflects open claims and claims that have been closed since SMC Fire commencement of operations, updated analysis and cost assignment may be needed as updated actuarial studies are performed in subsequent fiscal years. To that end, the City will prepare an annual analysis to 1) compare actuarial assumptions to the current actuarial study, including the discount rate or cost of healthcare, 2) evaluate new claims if the City is assigned proportional responsiblity. 76 Comprehensive Liability Insurance Fund
Comprehensive Liability Insurance 2024-25
Actuals
2025-26
Estimated
Actuals
2026-27
Proposed
Budget
2027-28
Projected
Budget
2028-29
Forecast
2029-30
Forecast
2029-30
Forecast
Beginning Fund Balance (2,423)$ (2,639)$ (3,218)$ 442$ 1,260$ 1,866$ 2,323$ Revenues
Interfund Charges 3,700$ 6,300$ 6,750$ 7,425$ 7,796$ 8,186$ 8,595$ Investment/Interest Earnings 120 - - - - - - Misc. Revenues 15 32 - - - - - Total Revenues 3,834$ 6,332$ 6,750$ 7,425$ 7,796$ 8,186$ 8,595$ Expenses
Personnel 199$ 183$ 189$ 194$ 201$ 207$ 213$ Insurance Premiums 3,109 4,100 5,000 5,500 6,000 6,500 7,000 Claims 133 1,100 250 250 250 250 250 Attorney's Fees 984 784 430 430 500 525 551 Other Costs 320 534 221 232 239 247 255 Actuarial Adjustment 1,305
211 - - - - - Total Expenses 6,049$ 6,912$ 6,090$ 6,607$ 7,190$ 7,729$ 8,269$ Transfer In 2,000$ -$ 3,000$ -$ -$ -$ -$ Ending Fund Balance (2,639)$ (3,218)$ 442$ 1,260$ 1,866$ 2,323$ 2,649$ 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 2026-27, this program is budgeted at $6.8 million, an increase of $1.6 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 26% annually, rising from $0.6 million in FY 2016-17 to the projected $5.0 million in 2026-27. 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 may be needed to cover future costs.
To help stabilize the fund, the City redirected $3 million in one-time support that was originally allocated to the Workers’ Compensation Fund (Fund 870) to the Comprehensive Liability Fund (Fund 880).
The California public entity insurance marketplace has been changing dramatically in recent years, and public agencies throughout the state are seeing a significant increase in plaintiff demands and high dollar liability claims. Areas of concern include wildfires, dangerous conditions, road design, intersections, sidewalks, and public safety services. Future insurance costs will be determined by the loss run experience for the City’s General Liability Program. It is anticipated that insurance premiums will remain high for the next few years before any reduction is seen. 77 Five- Year Capital
Improvement Program
78 Funded Projects
PROJECT NAME
2026-27
PROPOSED
BUDGET
2027-28
PLAN
2028-29
PLAN
2029-30
PLAN
2030-31
PLAN
5-Year
TOTAL
101/92 MULTI-MODAL (FASHION ISLAND CLASS IV BIKE LANE) 613,636$ -$ -$ -$ -$ 613,636$ 41ST AVE/PACIFIC BLVD TRASH CAPTURE 50,000 - - - - 50,000 ADA COMPLIANCE AND TRANSITION PLANNING 50,000 50,000 50,000 50,000 50,000 250,000 ALAMEDA DE LAS PULGAS & BARNESON INTERSECTION SAFETY OPTIMIZATION - 150,000 700,000 - 850,000 ANNUAL SANITARY SEWER REHABILITATION 9,000,000 10,350,000 9,000,000 8,755,000 9,850,000 46,955,000 BERESFORD PARK SITE DRAINAGE IMPROVEMENTS 100,000 - - - - 100,000 BIKE SAN MATEO PROGRAM - - 500,000 500,000 400,000 1,400,000 CENTRAL PARK - (550,000) - - - (550,000) CENTRAL PARK TENNIS COURTS - 200,000 200,000 - - 400,000 CITYWIDE BICYCLE PARKING - 10,000 10,000 - - 20,000 CITYWIDE BRIDGE MAINTENANCE 75,000 75,000 75,000 75,000 75,000 375,000 CITYWIDE EMERGENCY FIELD LIGHTING 120,000 120,000 120,000 - - 360,000 CITYWIDE FACILITY INTERIOR IMPROVEMENTS 400,000 400,000 400,000 400,000 400,000 2,000,000 CITYWIDE FACILITY ROOF REPLACEMENTS 600,000 1,300,000 600,000 1,500,000 1,000,000 5,000,000 CITYWIDE FACILITY WATERPROOFING IMPROVEMENTS 500,000 1,000,000 1,000,000 1,000,000 1,000,000 4,500,000 CITYWIDE FENCE IMPROVEMENTS 100,000 100,000 100,000 100,000 100,000 500,000 CITYWIDE FIRE - INTRUSION ALARM SYSTEM UPGRADE 250,000 250,000 250,000 250,000 250,000 1,250,000 CITYWIDE HVAC & PLUMBING IMPROVEMENTS 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 150,000 350,000 350,000 350,000 350,000 1,550,000 CITYWIDE SAFE ROUTES TO SCHOOL PROGRAM - 200,000 200,000 200,000 200,000 800,000 CITYWIDE SIDEWALK REPAIR PROGRAM 265,000 150,000 150,000 150,000 150,000 865,000 CITYWIDE SIGN INVENTORY AND REPLACEMENT - 100,000 100,000 100,000 100,000 400,000 CITYWIDE STREET RECONSTRUCTION PACKAGE III (2,000,000) - - - - (2,000,000) CITYWIDE STREET REHABILITATION PACKAGE II (130,000) - - - - (130,000) CITYWIDE STREET REHABILITATION PROGRAM 10,348,000 8,393,000 8,403,000 8,503,000 8,503,000 44,150,000 CITYWIDE TRAFFIC CALMING 100,000 200,000 200,000 200,000 - 700,000 CITYWIDE TRAFFIC SIGNAL RETIMING 25,000 25,000 25,000 25,000 25,000 125,000 CLEAN WATER PROGRAM (CWP) WWTP ANNUAL MAJOR COMPONENTS 8,200,000 - - - - 8,200,000 COLLECTION SYSTEM ODOR CONTROL 200,000 200,000 200,000 200,000 200,000 1,000,000 COLUMBIA DRIVE AND CRYSTAL SPRINGS ROAD STORM DRAIN CHANNEL (150,000) - - - - (150,000) COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROJECTS 443,108 450,000 450,000 450,000 450,000 2,243,108 COMPREHENSIVE RECREATION AND AQUATIC FACILITIES NEEDS ASSESSMENT 250,000 - - - - 250,000 CORP YARD MISC IMPROVEMENTS 100,000 100,000 100,000 100,000 100,000 500,000 CORPORATION YARD PAVING - 500,000 - - - 500,000 DALE AVENUE PUMP STATION H2O2 SYSTEM - 300,000 - - - 300,000 DALE AVENUE PUMP STATION WET WELL MIXER - 500,000 - - - 500,000 DOWNTOWN PARKING ANALYSIS 250,000 - - - - 250,000 DOWNTOWN PARKING IMPROVEMENTS (700,000) 100,000 100,000 100,000 100,000 (300,000) DOWNTOWN TRAFFIC SAFETY IMPROVEMENTS 17,537 - - - - 17,537 E 3RD/NORFOLK INTERSECTION RECONSTRUCTION 6,892 - - - - 6,892 ELEVATOR MODERNIZATION 500,000 500,000 500,000 500,000 1,500,000 3,500,000 EMERGENCY RADIO COMMUNICATIONS SYSTEM UPGRADE 175,000 - - - - 175,000 FIRE STATION 25 TRAFFIC SUBSTATION IMPROVEMENTS 100,000 - - - - 100,000 GOLF BUNKERS 400,000 - - - - 400,000 GOLF IRRIGATION CONTROLLERS & MAINLINE - 50,000 - - - 50,000 GREEN STORMWATER INFRASTRUCTURE PROGRAM 750,000 200,000 200,000 200,000 200,000 1,550,000 HIGH PRIORITY STORMWATER IMPROVEMENTS 2,250,000 3,000,000 3,000,000 3,000,000 3,000,000 14,250,000 HILLSDALE HIGH SCHOOL/31ST AVENUE PEDESTRIAN SAFETY IMPROVEMENT PROJECT - 700,000 - - - 700,000 J
APANESE GARDEN REPAIR - 500,000 250,000 - - 750,000 KING RECREATION & SWIM CENTER 4,000,000 - - - - 4,000,000 LAKESHORE COMMUNITY CENTER - 1,200,000 - - - 1,200,000 LAURELWOOD PARK PLAYGROUND - 50,000 1,000,000 - - 1,050,000 LAURELWOOD PARK RETAINING WALL REPAIR - 1,000,000 1,000,000 - - 2,000,000 LOCAL ROADWAY SAFETY PLAN IMPLEMENTATION PLAN 749,600 345,000 805,000 665,000 485,000 3,049,600 MARINA LIBRARY STRUCTURAL IMPROVEMENTS 400,000 - - - - 400,000 MLK JR PARK PLAYGROUND - 75,000 1,000,000 - - 1,075,000 NEIGHBORHOOD TRAFFIC MANAGEMENT 100,000 100,000 100,000 100,000 100,000 500,000 NEW FIRE STATION 27 2,200,000 - - - - 2,200,000 NORFOLK AND ROBERTA INTERSECTION SAFETY AND CONGESTION RELIEF PROJECT - 150,000 700,000 - 850,000 PARK CITYWIDE PLAYGROUND EQUIPMENT REPLACEMENT - PUBLIC WORKS 350,000 450,000 450,000 450,000 450,000 2,150,000 PARKING LOT RESURFACING (SHORELINE/LAKESHORE/LOS PRADOS/BERESFORD) 300,000 300,000 300,000 - - 900,000 PARKS AMENITIES ASSESEMENT - - - 1,000,000 - 1,000,000 PARKS IRRIGATION CONTROLLER UPGRADE 80,000 - - - - 80,000 PENINSULA/DELAWARE INTERSECTION SAFETY IMPROVEMENT 150,000 - - - - 150,000 PUMP STATION AND FORCE MAIN CONDITION ASSESSMENT 350,000 - - - - 350,000 QUICK BUILD MOBILITY PROGRAM 200,000 200,000 200,000 200,000 200,000 1,000,000 REAL TIME INFORMATION CENTER - 550,000 - - - 550,000 RECREATION CENTER BACKUP GENERATOR CONNECTION 50,000 50,000 50,000 50,000 50,000 250,000 REGIONAL AND CITYWIDE TRANSPORTATION PROGRAM MANAGEMENT 25,000 25,000 25,000 25,000 25,000 125,000 ROOT FOAMING 450,000 750,000 450,000 775,000 500,000 2,925,000 RYDER PARK WATER FEATURE FILTRATION SYSTEM 50,000 - - - 1,000,000 1,050,000 79 Funded Projects
PROJECT NAME
2026-27
PROPOSED
BUDGET
2027-28
PLAN
2028-29
PLAN
2029-30
PLAN
2030-31
PLAN
5-Year
TOTAL
SANITARY SEWER CCTV INSPECTION PROGRAM 1,000,000 950,000 900,000 1,200,000 1,500,000 5,550,000 SANITARY SEWER FLOW MONITORING & REPORTING 125,000 125,000 125,000 125,000 125,000 625,000 SANITARY SEWER IMPROVEMENTS - VARIOUS LOCATIONS 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 25,000,000 SANITARY SEWER MASTER PLAN 350,000 200,000 - - - 550,000 SANITARY SEWER PUMP STATION UPGRADES 5,300,000 5,500,000 5,600,000 5,800,000 6,000,000 28,200,000 SEAL POINT PARK POND H2S INVESTIGATION AND REMEDIATION 80,000 - - - - 80,000 SKATE PLAZA UPDATES 250,000 - - - - 250,000 SPORTS FIELDS CONVERSION: SYNTHETIC TURF (354,323) - - - - (354,323) STORM SYSTEM MINOR REPAIR 250,000 250,000 250,000 250,000 250,000 1,250,000 STORMWATER SYSTEM MANAGEMENT IMPROVEMENT PROGRAM 100,000 100,000 100,000 100,000 100,000 500,000 SYNTHETIC FIELD REPLACEMENT 700,000 - 100,000 2,000,000 600,000 3,400,000 TMDL ENHANCED PLANNING AND INFRASTRUCTURE IMPROVEMENTS 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 12,500,000 TRAIN QUIET ZONE 300,000 - - - - 300,000 TRASH CAPTURE AT POPLAR AND GOLF COURSE (50,000) - - - - (50,000) TREE PLANTING - PARKS DIVISION 175,000 175,000 175,000 175,000 175,000 875,000 TRFIC IMPRVMENTS- ECR/CRYSTAL SPRINGS RD (17,537) - - - - (17,537) TRINTA PARK PLAYGROUND 50,000 500,000 - - - 550,000 WASHINGTON PARK PLAYGROUND 50,000 900,000 - - - 950,000 WWTP SLUDGE HEAT EXCHANGERS REPLACEMENT - - 2,000,000 - - 2,000,000 WWTP ANNUAL DEMO AND SALVAGE OF ABANDONED EQUIP. - - - - 2,000,000 2,000,000 WWTP ANNUAL UPGRADE OF ELECTICAL WIRING - 1,300,000 1,300,000 1,300,000 1,300,000 5,200,000 WWTP CENTRIFUGE REPLACEMENT - - 3,000,000 3,900,000 - 6,900,000 WWTP COVERT OLD ADMIN BUILDING - - - - 1,500,000 1,500,000 WWTP DAFT REPLACEMENT 5,000,000 7,700,000 5,000,000 - - 17,700,000 WWTP DIGESTER 1 REPAIRS 1,000,000 3,400,000 - - - 4,400,000 WWTP DIURNAL EQUALIZATION IMPROVEMENTS - - - - 1,300,000 1,300,000 WWTP DIURNAL FLOW EQUALIZATION STUDY - - - 300,000 - 300,000 WWTP EFFLUENT PUMP STATION VFDS AND MISC. IMPS. - - 1,000,000 2,000,000 - 3,000,000 WWTP ELECTRICAL CART SHED - - - - 800,000 800,000 WWTP MISC. CONCRETE REPAIRS - MAIN STRUCTURE, BASINS AND DECKS 200,000 600,000 - - - 800,000 WWTP NEW DIGESTER 3 - 3,000,000 7,000,000 15,000,000 15,000,000 40,000,000 WWTP PAVEMENT REHABILITATION - 500,000 3,100,000 - - 3,600,000 WWTP POLYMER INJECTION 700,000 - - - - 700,000 WWTP SOLIDS HANDLING BLDG FLOOR DRAIN IMPROVEMENTS - 500,000 1,000,000 - - 1,500,000 WWTP SOLIDS HANDLING BLDG FLOOR DRAIN STUDY - 500,000 - - - 500,000 WWTP SOLIDS INSTRUMENTS AND CONTROLS 400,000 400,000 - - - 800,000 WWTP WATERLINE REPLACEMENTS - - - 1,200,000 1,200,000 2,400,000 Grand Total 66,271,913$ 69,618,000$ 70,363,000$ 72,523,000$ 70,463,000$ 349,238,913$ 80 CIP Projects by Category
PROJECT NAME
2026-27
PROPOSED
BUDGET
2027-28
PLAN
2028-29
PLAN
2029-30
PLAN
2030-31
PLAN
5-Year
TOTAL
Bikeway/Pedestrian
101/92 MULTI-MODAL (FASHION ISLAND CLASS IV BIKE LANE) 613,636$ - $ - $ - $ - $ 613,636$ ADA COMPLIANCE AND TRANSITION PLANNING 50,000 50,000 50,000 50,000 50,000 250,000 BIKE SAN MATEO PROGRAM - - 500,000 500,000 400,000 1,400,000 CITYWIDE BICYCLE PARKING - 10,000 10,000 - - 20,000 CITYWIDE SIDEWALK REPAIR PROGRAM 265,000 150,000 150,000 150,000 150,000 865,000 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROJECTS 443,108 450,000 450,000 450,000 450,000 2,243,108 E 3RD/NORFOLK INTERSECTION RECONSTRUCTION 6,892 - - - - 6,892 HILLSDALE HIGH SCHOOL/31ST AVENUE PEDESTRIAN SAFETY IMPROVEMENT PROJECT - 700,000 - - - 700,000 QUICK BUILD MOBILITY PROGRAM 200,000 200,000 200,000 200,000 200,000 1,000,000 Bikeway/Pedestrian 1,578,636$ 1,560,000$ 1,360,000$ 1,350,000$ 1,250,000$ 7,098,636$ Bridges
CITYWIDE BRIDGE MAINTENANCE 75,000$ 75,000$ 75,000$ 75,000$ 75,000$ 375,000$ Bridges Total 75,000$ 75,000$ 75,000$ 75,000$ 75,000$ 375,000$ Buildings
CITYWIDE EMERGENCY FIELD LIGHTING 120,000$ 120,000$ 120,000$ -$ -$ 360,000$ CITYWIDE FACILITY INTERIOR IMPROVEMENTS 400,000 400,000 400,000 400,000 400,000 2,000,000 CITYWIDE FACILITY ROOF REPLACEMENTS 600,000 1,300,000 600,000 1,500,000 1,000,000 5,000,000 CITYWIDE FACILITY WATERPROOFING IMPROVEMENTS 500,000 1,000,000 1,000,000 1,000,000 1,000,000 4,500,000 CITYWIDE FENCE IMPROVEMENTS 100,000 100,000 100,000 100,000 100,000 500,000 CITYWIDE FIRE - INTRUSION ALARM SYSTEM UPGRADE 250,000 250,000 250,000 250,000 250,000 1,250,000 CITYWIDE HVAC & PLUMBING IMPROVEMENTS 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 150,000 350,000 350,000 350,000 350,000 1,550,000 CORP YARD MISC IMPROVEMENTS 100,000
100,000 100,000 100,000 100,000 500,000 CORPORATION YARD PAVING - 500,000 - - - 500,000 DOWNTOWN PARKING ANALYSIS 250,000 - - - - 250,000 DOWNTOWN PARKING IMPROVEMENTS (700,000) 100,000 100,000 100,000 100,000 (300,000) ELEVATOR MODERNIZATION 500,000 500,000 500,000 500,000 1,500,000 3,500,000 KING RECREATION & SWIM CENTER 4,000,000 - - - - 4,000,000 LAKESHORE COMMUNITY CENTER - 1,200,000 - - - 1,200,000 MARINA LIBRARY STRUCTURAL IMPROVEMENTS 400,000 - - - - 400,000 NEW FIRE STATION 27 2,200,000 - - - - 2,200,000
PARKING LOT RESURFACING (SHORELINE/LAKESHORE/LOS
PRADOS/BERESFORD) 300,000 300,000 300,000 - - 900,000 RECREATION CENTER BACKUP GENERATOR CONNECTION 50,000 50,000 50,000 50,000 50,000 250,000 Buildings Total 9,520,000$
6,570,000$ 4,170,000$ 4,650,000$ 5,150,000$ 30,060,000$ Misc/Other
EMERGENCY RADIO COMMUNICATIONS SYSTEM UPGRADE 175,000$ -$ -$ -$ -$ 175,000$ FIRE STATION 25 TRAFFIC SUBSTATION IMPROVEMENTS 100,000 - - - - 100,000 LAURELWOOD PARK RETAINING WALL REPAIR - 1,000,000 1,000,000 - - 2,000,000 REAL TIME INFORMATION CENTER - 550,000 - - - 550,000 SEAL POINT PARK POND H2S INVESTIGATION AND REMEDIATION 80,000 - - - - 80,000 TRAIN QUIET ZONE 300,000 - - - - 300,000 Misc/Other Total 655,000$ 1,550,000$ 1,000,000$ -$ -$ 3,205,000$ Parks
BERESFORD PARK SITE DRAINAGE IMPROVEMENTS 100,000$ -$ -$ -$ -$ 100,000$ CENTRAL PARK - (550,000) - - - (550,000) CENTRAL PARK TENNIS COURTS - 200,000 200,000 - - 400,000 COMPREHENSIVE RECREATION AND AQUATIC FACILITIES NEEDS ASSESSMENT 250,000 - - - - 250,000 GOLF BUNKERS 400,000 - - - 400,000 GOLF IRRIGATION CONTROLLERS & MAINLINE - 50,000 - - - 50,000 JAPANESE GARDEN REPAIR - 500,000 250,000 - - 750,000 LAURELWOOD PARK PLAYGROUND - 50,000 1,000,000 - - 1,050,000 MLK JR PARK PLAYGROUND - 75,000 1,000,000 - - 1,075,000 PARK CITYWIDE PLAYGROUND EQUIPMENT REPLACEMENT - PUBLIC WORKS 350,000 450,000 450,000 450,000 450,000 2,150,000 PARKS AMENITIES ASSESEMENT - - - 1,000,000 - 1,000,000 PARKS IRRIGATION CONTROLLER UPGRADE 80,000 - - - - 80,000 RYDER PARK WATER FEATURE FILTRATION SYSTEM 50,000 - - - 1,000,000 1,050,000 SKATE PLAZA UPDATES 250,000 - - - - 250,000 SPORTS FIELDS CONVERSION: SYNTHETIC TURF (354,323) - - - - (354,323) SYNTHETIC FIELD REPLACEMENT 700,000 - 100,000 2,000,000 600,000 3,400,000 81 CIP Projects by Category
PROJECT NAME
2026-27
PROPOSED
BUDGET
2027-28
PLAN
2028-29
PLAN
2029-30
PLAN
2030-31
PLAN
5-Year
TOTAL
Parks (Continued)
TREE PLANTING - PARKS DIVISION 175,000$ 175,000 $ 175,000 $ 175,000 $ 175,000 $ 875,000$ TRINTA PARK PLAYGROUND 50,000 500,000 - - - 550,000 WASHINGTON PARK PLAYGROUND 50,000 900,000 - - - 950,000 Parks Total 2,100,677$ 2,350,000$ 3,175,000$ 3,625,000$ 2,225,000$ 13,475,677$ Sewer
ANNUAL SANITARY SEWER REHABILITATION 9,000,000$ 10,350,000$ 9,000,000$ 8,755,000$ 9,850,000$ 46,955,000$ CLEAN WATER PROGRAM (CWP) WWTP ANNUAL MAJOR COMPONENTS 8,200,000 - - - - 8,200,000 COLLECTION SYSTEM ODOR CONTROL 200,000 200,000 200,000 200,000 200,000 1,000,000 DALE AVENUE PUMP STATION H2O2 SYSTEM - 300,000 - - - 300,000 DALE AVENUE PUMP STATION WET WELL MIXER - 500,000 - - - 500,000 PUMP STATION AND FORCE MAIN CONDITION ASSESSMENT 350,000 - - - - 350,000
ROOT FOAMING 450,000 750,000 450,000 775,000 500,000 2,925,000 SANITARY SEWER CCTV INSPECTION PROGRAM 1,000,000 950,000 900,000 1,200,000 1,500,000 5,550,000 SANITARY SEWER FLOW MONITORING & REPORTING 125,000 125,000 125,000 125,000 125,000 625,000 SANITARY SEWER IMPROVEMENTS - VARIOUS LOCATIONS 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 25,000,000 SANITARY SEWER MASTER PLAN 350,000 200,000 - - - 550,000 SANITARY SEWER PUMP STATION UPGRADES 5,300,000 5,500,000 5,600,000 5,800,000 6,000,000 28,200,000 TMDL ENHANCED PLANNING AND INFRASTRUCTURE IMPROVEMENTS 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 12,500,000 WWTP SLUDGE HEAT EXCHANGERS REPLACEMENT - - 2,000,000 - - 2,000,000 WWTP ANNUAL DEMO AND SALVAGE OF ABANDONED EQUIP. - - - - 2,000,000 2,000,000 WWTP ANNUAL UPGRADE OF ELECTICAL WIRING - 1,300,000 1,300,000 1,300,000 1,300,000 5,200,000 WWTP CENTRIFUGE REPLACEMENT - - 3,000,000 3,900,000 - 6,900,000
WWTP COVERT OLD ADMIN BUILDING -
- - - 1,500,000 1,500,000 WWTP DAFT REPLACEMENT 5,000,000 7,700,000 5,000,000 - - 17,700,000 WWTP DIGESTER 1 REPAIRS 1,000,000 3,400,000 - - - 4,400,000 WWTP DIURNAL EQUALIZATION IMPROVEMENTS - - - - 1,300,000 1,300,000 WWTP DIURNAL FLOW EQUALIZATION STUDY - - - 300,000 - 300,000 WWTP EFFLUENT PUMP STATION VFDS AND MISC. IMPS. - - 1,000,000 2,000,000 - 3,000,000 WWTP ELECTRICAL CART SHED - - - - 800,000 800,000 WWTP MISC. CONCRETE REPAIRS - MAIN STRUCTURE, BASINS AND DECKS 200,000 600,000 - - - 800,000 WWTP NEW DIGESTER 3 - 3,000,000 7,000,000 15,000,000 15,000,000 40,000,000 WWTP PAVEMENT REHABILITATION - 500,000 3,100,000 - - 3,600,000 WWTP POLYMER INJECTION 700,000 - - - - 700,000 WWTP SOLIDS HANDLING BLDG FLOOR DRAIN IMPROVEMENTS - 500,000 1,000,000 - - 1,500,000 WWTP SOLIDS HANDLING BLDG FLOOR DRAIN STUDY - 500,000 - - - 500,000 WWTP SOLIDS INSTRUMENTS AND CONTROLS 400,000 400,000 - - - 800,000 WWTP WATERLINE REPLACEMENTS - - - 1,200,000 1,200,000 2,400,000 Sewer Total 39,775,000$ 44,275,000$ 47,175,000$ 48,055,000$ 48,775,000$ 228,055,000$ Stormwater
41ST AVE/PACIFIC BLVD TRASH CAPTURE 50,000$ - - - - 50,000$ COLUMBIA DRIVE AND CRYSTAL SPRINGS ROAD STORM DRAIN CHANNEL (150,000) - - - - (150,000) GREEN STORMWATER INFRASTRUCTURE PROGRAM 750,000 200,000 200,000 200,000 200,000 1,550,000 HIGH PRIORITY STORMWATER IMPROVEMENTS 2,250,000 3,000,000 3,000,000 3,000,000 3,000,000 14,250,000 STORM SYSTEM MINOR REPAIR 250,000 250,000 250,000 250,000 250,000 1,250,000 STORMWATER SYSTEM MANAGEMENT IMPROVEMENT PROGRAM 100,000 100,000 100,000 100,000 100,000 500,000 TRASH CAPTURE AT POPLAR AND GOLF COURSE (50,000) - - - - (50,000) Stormwater Total 3,200,000$ 3,550,000$ 3,550,000$ 3,550,000$ 3,550,000$ 17,400,000$ Streets
CITYWIDE STREET RECONSTRUCTION PACKAGE III (2,000,000)$ -$ -$ -$ -$ (2,000,000)$ CITYWIDE STREET REHABILITATION PACKAGE II (130,000) - - - - (130,000) CITYWIDE STREET REHABILITATION PROGRAM 10,348,000 8,393,000 8,403,000 8,503,000 8,503,000 44,150,000 LOCAL ROADWAY SAFETY PLAN IMPLEMENTATION PLAN 749,600 345,000 805,000 665,000 485,000 3,049,600 Streets Total 8,967,600$ 8,738,000$ 9,208,000$ 9,168,000$ 8,988,000$ 45,069,600$ Traffic
ALAMEDA DE LAS PULGAS & BARNESON INTERSECTION SAFETY OPTIMIZATION -$ 150,000$ -$ 700,000$ -$ 850,000$ CITYWIDE SAFE ROUTES TO SCHOOL PROGRAM - 200,000 200,000 200,000 200,000 800,000 CITYWIDE SIGN INVENTORY AND REPLACEMENT - 100,000 100,000 100,000 100,000 400,000 CITYWIDE TRAFFIC CALMING 100,000 200,000 200,000 200,000 - 700,000 CITYWIDE TRAFFIC SIGNAL RETIMING 25,000 25,000 25,000 25,000 25,000 125,000 DOWNTOWN TRAFFIC SAFETY IMPROVEMENTS 17,537 - - - - 17,537 NEIGHBORHOOD TRAFFIC MANAGEMENT 100,000 100,000 100,000 100,000 100,000 500,000 82 CIP Projects by Category
PROJECT NAME
2026-27
PROPOSED
BUDGET
2027-28
PLAN
2028-29
PLAN
2029-30
PLAN
2030-31
PLAN
5-Year
TOTAL
Traffic (Continued)
NORFOLK AND ROBERTA INTERSECTION SAFETY AND CONGESTION RELIEF PROJECT -$ 150,000$ - $ 700,000$ - $ 850,000$ PENINSULA/DELAWARE INTERSECTION SAFETY IMPROVEMENT 150,000 - - - - 150,000 REGIONAL AND CITYWIDE TRANSPORTATION PROGRAM MANAGEMENT 25,000 25,000 25,000 25,000 25,000 125,000 TRAFFIC IMPROVEMENTS- ECR/CRYSTAL SPRINGS RD (17,537) - - - - (17,537) Traffic Total 400,000$ 950,000 $ 650,000 $ 2,050,000$ 450,000 $ 4,500,000$ Grand Total 66,271,913$ 69,618,000 $ 70,363,000 $ 72,523,000 $ 70,463,000 $ 349,238,913 $ 83 CIP Projects by Funding Source
PROJECT NAME
2026-27
PROPOSED
BUDGET
2027-28
PLAN
2028-29
PLAN
2029-30
PLAN
2030-31
PLAN
5-Year
TOTAL
Gas Tax
CITYWIDE BICYCLE PARKING -$ 10,000$ 10,000 $ - $ - $ 20,000$ CITYWIDE STREET REHABILITATION PROGRAM 2,193,000 1,293,000 1,303,000 1,303,000 1,303,000 7,395,000 Gas Tax Total 2,193,000$ 1,303,000 $ 1,313,000 $ 1,303,000 $ 1,303,000 $ 7,415,000 $ General Fund
ADA COMPLIANCE AND TRANSITION PLANNING 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000$ BERESFORD PARK SITE DRAINAGE IMPROVEMENTS 100,000 - - - - 100,000 CITYWIDE EMERGENCY FIELD LIGHTING 120,000 120,000 120,000 - - 360,000 CITYWIDE FACILITY INTERIOR IMPROVEMENTS - 400,000 400,000 400,000 400,000 1,600,000 CITYWIDE FACILITY WATERPROOFING IMPROVEMENTS 500,000 1,000,000 1,000,000 1,000,000 1,000,000 4,500,000 CITYWIDE FENCE IMPROVEMENTS 100,000 100,000 100,000 100,000 100,000 500,000 CITYWIDE FIRE - INTRUSION ALARM SYSTEM UPGRADE 250,000 250,000 250,000 250,000 250,000 1,250,000 CITYWIDE HVAC & PLUMBING IMPROVEMENTS - 250,000 250,000 250,000 250,000 1,000,000 CITYWIDE PICNIC AREA IMPROVEMENTS 50,000
50,000 50,000 50,000 50,000 250,000 CITYWIDE SIDEWALK REPAIR PROGRAM 265,000 150,000 150,000 150,000 150,000 865,000 CITYWIDE TRAFFIC CALMING 100,000 - - - - 100,000 COLUMBIA DRIVE AND CRYSTAL SPRINGS ROAD STORM DRAIN CHANNEL (150,000) - - - - (150,000) COMPREHENSIVE RECREATION AND AQUATIC FACILITIES NEEDS ASSESSMENT 250,000 - - - - 250,000 CORP YARD MISC IMPROVEMENTS 50,000 50,000 50,000 50,000 50,000 250,000 CORPORATION YARD PAVING - 500,000 - - - 500,000 DOWNTOWN PARKING ANALYSIS 250,000 - - - - 250,000 DOWNTOWN PARKING IMPROVEMENTS (700,000) 100,000 100,000 100,000 100,000 (300,000) ELEVATOR MODERNIZATION 500,000 500,000 500,000 500,000 1,500,000 3,500,000 FIRE STATION 25 TRAFFIC SUBSTATION IMPROVEMENTS 100,000 - - - - 100,000 KING RECREATION & SWIM CENTER 4,000,000 - - - - 4,000,000
LAURELWOOD PARK RETAINING WALL REPAIR -
1,000,000 1,000,000 - - 2,000,000 MARINA LIBRARY STRUCTURAL IMPROVEMENTS 400,000 - - - - 400,000 NEW FIRE STATION 27 2,200,000 - - - - 2,200,000 PARK CITYWIDE PLAYGROUND EQUIPMENT REPLACEMENT - PUBLIC WORKS - 450,000 450,000 450,000 450,000 1,800,000 PARKING LOT RESURFACING (SHORELINE/LAKESHORE/LOS PRADOS/BERESFORD) 300,000 300,000 300,000 - - 900,000 RECREATION CENTER BACKUP GENERATOR CONNECTION 50,000 50,000 50,000 50,000 50,000 250,000 General Fund Total 8,785,000$ 5,320,000$ 4,820,000$ 3,400,000$ 4,400,000$ 26,725,000$ Grants
101/92 MULTI-MODAL (FASHION ISLAND CLASS IV BIKE LANE) 613,636$ -$ -$ -$ -$ 613,636$ COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROJECTS 450,000 450,000 450,000 450,000 450,000 2,250,000 LAKESHORE COMMUNITY CENTER - 1,200,000 - - - 1,200,000 LOCAL ROADWAY SAFETY PLAN IMPLEMENTATION PLAN 663,600 - - - - 663,600 REAL TIME INFORMATION CENTER - 550,000 - - - 550,000 Grants Total 1,727,236$ 2,200,000$
450,000$ 450,000$ 450,000$ 5,277,236$ Measure A
ALAMEDA DE LAS PULGAS & BARNESON INTERSECTION SAFETY OPTIMIZATION -$ 150,000$ -$ 700,000$ -$ 850,000$ CITYWIDE BRIDGE MAINTENANCE 75,000 75,000 75,000 75,000 75,000 375,000 CITYWIDE SAFE ROUTES TO SCHOOL PROGRAM - 200,000 200,000 200,000 200,000 800,000 CITYWIDE SIGN INVENTORY AND REPLACEMENT - 100,000 100,000 100,000 100,000 400,000 CITYWIDE STREET REHABILITATION PACKAGE II (130,000) - - - - (130,000) CITYWIDE STREET REHABILITATION PROGRAM 2,605,000 2,250,000 2,250,000 2,250,000 2,250,000 11,605,000 CITYWIDE TRAFFIC SIGNAL RETIMING 25,000 25,000 25,000 25,000 25,000 125,000 HILLSDALE HIGH SCHOOL/31ST AVENUE PEDESTRIAN SAFETY IMPROVEMENT PROJ E - 700,000 - - - 700,000 LOCAL ROADWAY SAFETY PLAN IMPLEMENTATION PLAN 86,000 345,000 805,000 665,000 485,000 2,386,000 NORFOLK AND ROBERTA INTERSECTION SAFETY AND CONGESTION RELIEF PROJEC - 150,000 700,000 - 850,000 REGIONAL AND CITYWIDE TRANSPORTATION PROGRAM MANAGEMENT 25,000 25,000 25,000 25,000 25,000 125,000 Measure A Total 2,686,000$ 4,020,000 $ 3,480,000 $ 4,740,000 $ 3,160,000 $ 18,086,000 $ Measure CC
CITYWIDE FACILITY INTERIOR IMPROVEMENTS 400,000 $ - $ - $ - $ - $ 400,000$ CITYWIDE HVAC & PLUMBING IMPROVEMENTS 250,000 - - - - 250,000 PARK CITYWIDE PLAYGROUND EQUIPMENT REPLACEMENT - PUBLIC WORKS 350,000 - - - - 350,000 SKATE PLAZA UPDATES 250,000 - - - - 250,000 Measure CC Total 1,250,000$ - $ - $ - $ - $ 1,250,000$ 84 CIP Projects by Funding Source
PROJECT NAME
2026-27
PROPOSED
BUDGET
2027-28
PLAN
2028-29
PLAN
2029-30
PLAN
2030-31
PLAN
5-Year
TOTAL
Measure S
CITYWIDE FACILITY ROOF REPLACEMENTS 600,000$ 1,200,000$ 500,000$ 500,000$ 500,000$ 3,300,000$ CITYWIDE PLAY COURT RESURFACING 150,000 350,000 350,000 350,000 350,000 1,550,000 CITYWIDE STREET RECONSTRUCTION PACKAGE III (2,000,000) - - - - (2,000,000) CITYWIDE STREET REHABILITATION PROGRAM 1,500,000 500,000 500,000 500,000 500,000 3,500,000 NEIGHBORHOOD TRAFFIC MANAGEMENT 100,000 100,000 100,000 100,000 100,000 500,000 PENINSULA/DELAWARE INTERSECTION SAFETY IMPROVEMENT 150,000 - - - - 150,000 QUICK BUILD MOBILITY PROGRAM 200,000 200,000 200,000 200,000 200,000 1,000,000 Measure S Total 700,000$ 2,350,000$ 1,650,000$ 1,650,000$ 1,650,000$ 8,000,000$ Measure W
CITYWIDE STREET REHABILITATION PROGRAM 700,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 4,700,000$ TRAIN QUIET ZONE 300,000 - - - - 300,000 Measure W Total 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 5,000,000$
Miscellaneous
CITYWIDE FACILITY ROOF REPLACEMENTS -$ 100,000$ 100,000$ 1,000,000$ 500,000$ 1,700,000$ EMERGENCY RADIO COMMUNICATIONS SYSTEM UPGRADE 50,000 - - - - 50,000 SEAL POINT PARK POND H2S INVESTIGATION AND REMEDIATION 80,000 - - - - 80,000 Miscellaneous Total 130,000$ 100,000$ 100,000$ 1,000,000$ 500,000$ 1,830,000$ Other Agencies
CITYWIDE STREET REHABILITATION PROGRAM 350,000$ 350,000$ 350,000$ 350,000$ 350,000$ 1,750,000$ Other Agencies Total 350,000$ 350,000$ 350,000$ 350,000$ 350,000$ 1,750,000$ P&R Taxes & Fees
CENTRAL PARK -$ (550,000)$ -$ -$ -$ (550,000)$ CENTRAL PARK TENNIS COURTS - 200,000 200,000 - - 400,000 GOLF BUNKERS 400,000 - - - - 400,000
GOLF IRRIGATION CONTROLLERS & MAINLINE - 50,000 - - - 50,000 JAPANESE GARDEN REPAIR - 500,000 250,000 - - 750,000 LAURELWOOD PARK PLAYGROUND - 50,000 1,000,000 - - 1,050,000
MLK JR PARK PLAYGROUND - 75,000 1,000,000 - - 1,075,000 PARKS AMENITIES ASSESEMENT - - - 1,000,000 - 1,000,000 PARKS IRRIGATION CONTROLLER UPGRADE 80,000 - - - - 80,000 RYDER PARK WATER FEATURE FILTRATION SYSTEM 50,000 - - - 1,000,000 1,050,000 SPORTS FIELDS CONVERSION: SYNTHETIC TURF (354,323) - - - - (354,323) SYNTHETIC FIELD REPLACEMENT 700,000 - 100,000 2,000,000 600,000 3,400,000 TRINTA PARK PLAYGROUND 50,000 500,000 - - - 550,000 WASHINGTON PARK PLAYGROUND 50,000 900,000 - - - 950,000 P&R Taxes & Fees Total 975,677$ 1,725,000$ 2,550,000$ 3,000,000$ 1,600,000$ 9,850,677$ Private Contributions
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROJECTS (6,892)$ -$ -$ -$ -$ (6,892)$ DOWNTOWN TRAFFIC SAFETY IMPROVEMENTS 17,537 - - - - 17,537 E 3RD/NORFOLK INTERSECTION RECONSTRUCTION 6,892 - - - - 6,892
TRAFFIC IMPROVEMENTS- ECR/CRYSTAL SPRINGS RD (17,537) - - - - (17,537) Private Contributions Total -$ -$ -$ -$ -$ -$
RMRA
CITYWIDE STREET REHABILITATION PROGRAM 3,000,000$ 3,000,000$ 3,000,000$ 3,100,000$ 3,100,000$ 15,200,000$ P&R Taxes & Fees Total 3,000,000$ 3,000,000$ 3,000,000$ 3,100,000$ 3,100,000$ 15,200,000$ Sewer
ANNUAL SANITARY SEWER REHABILITATION 9,000,000$ 10,350,000$ 9,000,000$ 8,755,000$ 9,850,000$ 46,955,000$ CLEAN WATER PROGRAM (CWP) WWTP ANNUAL MAJOR COMPONENTS 8,200,000 - - - - 8,200,000 COLLECTION SYSTEM ODOR CONTROL 200,000 200,000 200,000 200,000 200,000 1,000,000 CORP YARD MISC IMPROVEMENTS 50,000 50,000 50,000 50,000 50,000 250,000 DALE AVENUE PUMP STATION H2O2 SYSTEM - 300,000 - - - 300,000 DALE AVENUE PUMP STATION WET WELL MIXER - 500,000 - - - 500,000 EMERGENCY RADIO COMMUNICATIONS SYSTEM UPGRADE 100,000 - - - - 100,000 PUMP STATION AND FORCE MAIN CONDITION ASSESSMENT 350,000 - - - - 350,000 ROOT FOAMING 450,000 750,000
450,000 775,000 500,000 2,925,000 SANITARY SEWER CCTV INSPECTION PROGRAM 1,000,000 950,000 900,000 1,200,000 1,500,000 5,550,000 SANITARY SEWER FLOW MONITORING & REPORTING 125,000 125,000 125,000 125,000 125,000 625,000 SANITARY SEWER IMPROVEMENTS - VARIOUS LOCATIONS 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 25,000,000 SANITARY SEWER MASTER PLAN 350,000 200,000 - - - 550,000 SANITARY SEWER PUMP STATION UPGRADES 5,300,000 5,500,000 5,600,000 5,800,000 6,000,000 28,200,000 TMDL ENHANCED PLANNING AND INFRASTRUCTURE IMPROVEMENTS 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 12,500,000 85 CIP Projects by Funding Source
PROJECT NAME
2026-27
PROPOSED
BUDGET
2027-28
PLAN
2028-29
PLAN
2029-30
PLAN
2030-31
PLAN
5-Year
TOTAL
Sewer (Continued)
WWTP SLUDGE HEAT EXCHANGERS REPLACEMENT - - 2,000,000 - - 2,000,000 WWTP ANNUAL DEMO AND SALVAGE OF ABANDONED EQUIP. - - - - 2,000,000 2,000,000 WWTP ANNUAL UPGRADE OF ELECTICAL WIRING - 1,300,000 1,300,000 1,300,000 1,300,000 5,200,000 WWTP CENTRIFUGE REPLACEMENT - - 3,000,000 3,900,000 - 6,900,000 WWTP COVERT OLD ADMIN BUILDING - - - - 1,500,000 1,500,000 WWTP DAFT REPLACEMENT 5,000,000 7,700,000 5,000,000 - - 17,700,000 WWTP DIGESTER 1 REPAIRS 1,000,000 3,400,000 - - - 4,400,000 WWTP DIURNAL EQUALIZATION IMPROVEMENTS - - - - 1,300,000 1,300,000 WWTP DIURNAL FLOW EQUALIZATION STUDY - - - 300,000 - 300,000 WWTP EFFLUENT PUMP STATION VFDS AND MISC. IMPS. - - 1,000,000 2,000,000 - 3,000,000 WWTP ELECTRICAL CART SHED - - - - 800,000 800,000 WWTP MISC. CONCRETE REPAIRS - MAIN STRUCTURE, BASINS AND DECKS 200,000 600,000 - - - 800,000 WWTP NEW DIGESTER 3 - 3,000,000 7,000,000 15,000,000 15,000,000 40,000,000 WWTP PAVEMENT REHABILITATION - 500,000 3,100,000 - - 3,600,000 WWTP POLYMER INJECTION 700,000 700,000
WWTP SOLIDS HANDLING BLDG FLOOR DRAIN IMPROVEMENTS - 500,000 1,000,000 - - 1,500,000 WWTP SOLIDS HANDLING BLDG FLOOR DRAIN STUDY - 500,000 - - - 500,000 WWTP SOLIDS INSTRUMENTS AND CONTROLS 400,000 400,000 - - - 800,000 WWTP WATERLINE REPLACEMENTS - - - 1,200,000 1,200,000 2,400,000 Sewer Total 39,925,000$ 44,325,000$ 47,225,000$ 48,105,000$ 48,825,000$ 228,405,000$ Storm
EMERGENCY RADIO COMMUNICATIONS SYSTEM UPGRADE 25,000$ -$ -$ -$ -$ 25,000$ GREEN STORMWATER INFRASTRUCTURE PROGRAM 750,000 200,000 200,000 200,000 200,000 1,550,000 HIGH PRIORITY STORMWATER IMPROVEMENTS 2,250,000 3,000,000 3,000,000 3,000,000 3,000,000 14,250,000 STORM SYSTEM MINOR REPAIR 250,000 250,000 250,000 250,000 250,000 1,250,000 STORMWATER SYSTEM MANAGEMENT IMPROVEMENT PROGRAM 100,000 100,000 100,000 100,000 100,000 500,000 Storm Total 3,375,000$ 3,550,000$ 3,550,000$ 3,550,000$ 3,550,000$ 17,575,000$ Taxes, Fees & Charges
41ST AVE/PACIFIC BLVD TRASH CAPTURE 50,000$ -$ -$ -$ -$ 50,000$ TRASH CAPTURE AT POPLAR AND GOLF COURSE (50,000) - - - - (50,000) Taxes, Fees & Charges Total -$ -$ -$ -$ -$ -$
Traffic Impact Fees
BIKE SAN MATEO PROGRAM -$ -$ 500,000$ 500,000$ 400,000$ 1,400,000$ CITYWIDE TRAFFIC CALMING - 200,000 200,000 200,000 - 600,000 Traffic Impact Fees Total -$ 200,000$ 700,000$ 700,000$ 400,000$ 2,000,000$ Tree Replacement Fee
TREE PLANTING - PARKS DIVISION 175,000$ 175,000$ 175,000$ 175,000$ 175,000$ 875,000$ Tree Replacement FeeTotal 175,000$ 175,000$ 175,000$ 175,000$ 175,000$ 875,000$ Grand Total 66,271,913$ 69,618,000$ 70,363,000$ 72,523,000$ 70,463,000$ 349,238,913$ 86 Unfunded Projects
PROJECT NAME
TOTAL
ESTIMATED
COST
CENTRAL PARK MASTER PLAN (REMAINING PHASES) 60,000,000$ NEW CENTRAL PARK PARKING GARAGE 32,000,000
BAY MEADOWS COMMUNITY PARK 30,000,000
NEW CORPORATION YARD FACILITY 26,000,000
CITYWIDE BRIDGE MAINTENANCE 22,000,000
KING RECREATION & SWIM CENTER 16,000,000
19TH AVENUE DRAINAGE AREA 11,972,000
MARINA LAGOON DREDGING 11,900,000
SHOREVIEW RECREATION CENTER INFRASTRUCTURE IMPROVEMENTS 11,000,000 LAUREL CREEK DRAINAGE AREA 9,567,000
16TH AVENUE DRAINAGE AREA 9,521,000
NEW FIRE STATION 27 8,800,000
BERESFORD RECREATION CENTER INFRASTRUCTURE IMPROVEMENTS 8,000,000 CENTRAL RECREATION CENTER INFRASTRUCTURE IMPROVEMENTS 7,000,000 LAKESHORE RECREATION CENTER INFRASTRUCTURE IMPROVEMENTS 6,000,000 SENIOR CENTER INFRASTRUCTURE IMPROVEMENTS 6,000,000
HILLSDALE LIBRARY INFRASTRUCTURE IMPROVEMENTS 6,000,000 DETROIT DRIVE DRAINAGE AREA 5,728,000
SHORELINE PARKS 5,000,000
CITYWIDE PARK SIGNS 5,000,000
LAURELWOOD/SUGARLOAF OPEN SPACE 5,000,000
BOAT LAUNCH RENOVATION AT PARKSIDE AQUATIC 4,500,000
MARINER'S ISLAND BRIDGE APPROACH STABILIZATION 3,610,000 MONTE DIABLO AVENUE PEDESTRIAN SCALE LIGHTING 3,300,000 PALM AVENUE PEDESTRIAN SCALE LIGHTING 3,300,000
SAN MATEO CREEK DRAINAGE AREA 2,620,000
28TH AVE GAP CLOSURE CONSTRUCTION 2,310,000
PASADENA ROADWAY RECONSTRUCTION 1,800,000
BMP-L PROJECT 10 1,450,000
PARK RESTROOM IMPROVEMENTS PHASE VI 1,300,000
PARK RESTROOM IMPROVEMENTS PHASE VII 1,300,000
BMP-ML PROJECT 2 1,264,000
LRSP SYSTEMIC PRIORITY - TRAFFIC SIGNAL BACKPLATE 1,150,000 BMP-ML PROJECT 1 1,051,000
2ND & EL CAMINO REAL GARAGE LONG-TERM IMPROVEMENTS 1,000,000 CITYWIDE ELECTRICAL PANEL UPGRADES 1,000,000
BMP-ML PROJECT 4 944,000
BMP-ML PROJECT 5 878,000
BMP-ML PROJECT 7 878,000
GOLF COURSE MAINTENCE BUILDING AND CART BARN RENOVATIONS 750,000 BMP-L PROJECT 17 692,000
BMP-L PROJECT 8 625,000
PACIFIC BOULEVARD DRAINAGE CHANNEL REHABILITATION 600,000 RYDER CREEK BRIDGE PAINTING 475,000
BMP-ML PROJECT 14 439,000
BMP-ML PROJECT 6 426,000
BMP-ML PROJECT 8 426,000
CITYWIDE ASSISTIVE LISTENING DEVICES 400,000
CITY HALL IMPROVEMENTS 400,000
BMP-L PROJECT 2 399,000
87 Unfunded Projects
PROJECT NAME
TOTAL
ESTIMATED
COST
PATHWAY REPAIRS AT VARIOUS PARKS 375,000
BMP-L PROJECT 5 372,000
3RD AVENUE/NORFOLK PED/BIKE ACCESS IMPROVEMENT 370,000
BMP-ML PROJECT 11 359,000
RESTROOM BUILDING REPLACEMENT TRINTA 350,000
PLANNING PARK DEVELOPMENT AT DALE AVENUE AND ANCHOR ROAD SITES 350,000 BMP-ML PROJECT 9 319,000
BMP-ML PROJECT 13 306,000
POLICE DEPARTMENT EXTERIOR - REPAINT DECK FENCING 300,000 BMP-L PROJECT 7 266,000
BMP-L PROJECT 3 253,000
BMP-ML PROJECT 3 226,000
EAST 5TH AVENUE PEDESTRIAN SCALE LIGHTING 220,000
STREETLIGHT MASTER PLAN 200,000
CITYWIDE PARKS SECURITY UPGRADES - CAMERAS 200,000
BMP-L PROJECT 1 200,000
BMP-ML PROJECT 10 186,000
REFURBISH NORTH END OF KOI POND 180,000
BMP-L PROJECT 4 173,000
BMP-L PROJECT 14 160,000
POLICE DEPARTMENT INTERIOR WORK REORGANIZATION 150,000
BMP-L PROJECT 15 146,000
BMP-L PROJECT 16 146,000
BMP-L PROJECT 13 133,000
BMP-ML PROJECT 12 133,000
BMP-L PROJECT 6 106,000
BMP-L PROJECT 9 80,000
BMP-L PROJECT 12 53,000
BMP-L PROJECT 11 40,000
Grand Total 348,127,000$
88 APPENDIX
Appendix
89 Gann Appropriations Limit
City of San Mateo Gann Appropriations Limit as Defined in Article XIII B of the California State
Constitution
The voters of California, during a special election in 1979, approved Article XIII-B of the California State Constitution.
Informally
known as the “Gann Initiative,” Article XIII-B provides limits regardin g the total amount of appropriations in any fiscal year from “the proceeds of taxes.”
In 1980, the State Legislature added Section 7900 et seq. to the Government Code, providing that the governing body of each local jurisdiction must establish, by resolution, an appropriations limit for the following year. The appropriations limit for any fiscal year was equal to the pre
vious year’s limit, adjusted for population changes and the changes in the US Consumer Price Index (or California per capita pe rsonal income, if smaller). The necessary statistical information is prov
ided by the California Department of Finance.
However, the original Article XIII-B (Proposition 4) and its implementing legislation were modified by Proposition 111 and SB 88 by the voters in June 1980. The changes were incorporated into the fiscal year 1990-91 and fiscal year 1991- 92 appropriations limits. Beginning with the fiscal year 1990- 91 appropriations limit, a city may choose annual adjustment factors. The adjustment factors include the growth in the California per capita income or the growth in the non- residential assessed valuation due to construction within the City and the population growth within the county or the city.
The table below provides the calculation for the appropriations limit for fiscal year 2026-27, as well as the total appropriations subject to the limit. The adjustment factors utilized for the fiscal year 2025-26 cal culation include the growth in California per capita income and the population growth within the County of San Mateo. As the table demonstrates, the City’s appropriations subject to the limit ($145.98 million) are well below the appropriations limit itself ($304.41 million).
CITY OF SAN MATEO APPROPRIATIONS LIMIT FOR FISCAL YEAR 2026-27 AMOUNT SOURCE A Last Year's Limit 286,074,454$ 2025-26 Limit
B Adjustment Factors
1. Population 0.9997 CA Dept. of Finance
2. Inflation 1.0644 CA Dept. of Finance
1.0641 B1*B2
Total Adjustment % 0.064 B1*B2-1
C Annual Adjustment 18,331,846$ A*B
D This Year's Limit 304,406,300$ A+C
E Tax Proceeds Subject to the Limit
Property Tax 84,966,000$ 2026-27 Budget
Sales Tax 28,350,000 2026-27 Budget
Property Transfer Tax 9,000,000 2026-27 Budget
Other Tax 12,420,000 2026-27 Budget
Interest Allocation 11,240,000 2026-27 Budget
Total 145,976,000$
Amount Under / (Over) Limit 158,430,300$ D-E
90 Budget Changes
Full Time Equivilant (FTE) Personnel Changes
DEPARTMENT ACTION 2026-27
PROPOSED POSITION/SERVICE ENHANCEMENTS FUNDING SOURCE
NET
FISCAL
IMPACT
City Employee Merit FTE Before Changes: 554.13 FTE
Reallocate Sustainability Analyst to Business
Manager
Reallocate position to provide for management of
sustainability items in addition to oversight of City
Manager's Office budget, Customer Relationship
Management program, Citywide CIP budget and
other Citywide projects.
Create three Fellow positions
Authorize three new Fellow positions that are
unfunded positions that can only be utilized with one-
time funding to address strategic plan priority
initiatives.
Reallocate Senior Business Systems Analyst to
Management Analyst I/II
Reallocate position to support economic
development initiatives from within CDD.
Reallocate Payroll Technician to Payroll Analyst
Reallocate to provide for higher level payroll support
needed to operate within Workday and reduce
dependence on outside consultants.
Total Changes to Merit Positions 3.00 FTE
Total Merit FTE 557.13 FTE
Finance Reallocate -
5% Advanced Planning Fund
10% Solid Waste Fund
35% Construction Services Fund
50% Sewer Fund
8,000$
Community
Development Reallocate -
10% General Fund
15% Advanced Planning Fund
75% Construction Services Fund
(48,000)$
City Manager's
Office New 3.00 - $
City Manager's
Office Reallocate -
50% General Fund
50% Construction Services Fund 10,000$
91 Budget Changes
Non-Personnel Operating Changes
DEPARTMENT SERVICE ENHANCEMENTS FUNDING
SOURCE
2026-27
PROPOSED
BUDGET
2027-28
PROJECTED
BUDGET
CCTV Equipment
The existing sewer CCTV camera system is 14 years old and has exceeded the industry standard useful life expectance of approximately 10 years for this type of equipment. Due to its age, the current system has become increasingly unreliable, with replacement parts and manufacturer support becoming unavailable. Field Maintenance also recommends the equipment be added to the replacement schedule with an estimated life span of 10-12 years.
On Site Generators
For 3rd and Detroit and the Marina Lagoon storm pump stations: These onsite generators have been in place for over 30 years and have exceeded the industry useful life expectance of approximately 15 years.
Additionally, Field Maintenance recommends adding these generators to a replacement list of 10-12 years.
Bobcat/Skid Steer
The Storm and Sewer Maintenance team is requesting the purchase of a dedicated Bobcat/Skid Steer to support daily operations and maintenance activities. Currently, the division does not have a dedicated Bobcat to address vegetation removal, creek cleaning, sediment and debris removal, and emergency response activities. Staff must rely on borrowing equipment from other divisions when available, which can create delays in responding to operational needs and emergencies.
EV or Hybrid Truck
This truck will be assigned to the Storm Supervisor. This is a newer position created to oversee the storm maintenance, creek maintenance, weed abatement, and the Pump team/group. This will be an additional vehicle to the current fleet and this vehicle will need to be added to the 10- year replacement list.
Totals 295,000 $ 80,000 $
Public Works
Storm Fund 80,000 - Public Works Storm Fund 65,000 - Public Works
Sewer Fund 150,000$ -$
Public Works
50% Sewer Fund
50% Storm Fund - 80,000
92