____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting:
Disposition:
Agenda Item No: 3.b
Meeting Date: March 2, 2026
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Finance
Prepared by: Paul Navazio, Finance Director City Manager Approval: ______________ TOPIC: FISCAL YEAR 2025-26 MID-YEAR BUDGET UPDATE
SUBJECT: FISCAL YEAR 2025-26 MID-YEAR BUDGET UPDATE FOR THE SECOND QUARTER ENDING DECEMBER 31, 2025, AND APPROVAL OF RESOLUTIONS AUTHORIZING
SELECTED MID-YEAR SUPPLEMENTAL BUDGET APPROPRIATIONS TOTALING $569,805, AUTHORIZING APPLICATION OF CREDIT CARD PROCESSING FEES TO
SELECTED CREDIT CARD TRANSACTIONS, AND AMENDMENTS TO APPLICABLE SALARY SCHEDULES TO REFLECT FY 2025-26 MID-YEAR PERSONNEL CHANGES RECOMMENDATION:
Staff recommends that the City Council:
1) Accept the FY 2025-26 Mid-Year Budget Update, presenting revenue and expenditure results through the second quarter of the current fiscal year (through the accounting period ended December 31, 2025),
2) Adopt a resolution authorizing supplemental FY2025-26 mid-year budget appropriations totaling $569,085 across all funds, as reflected in (Attachment B), 3) Adopt a resolution authorizing the City Manager or designee to apply a credit card processing fee for payments received through credit card, debit card, or electronic transfer transactions to selected transactions (Attachment C),
4) Adopt a resolution approving personnel classification and salary resolution updates related to Traffic Engineering Staffing and Temporary/Seasonal/Retiree minimum wage adjustments (Attachment D).
BACKGROUND:
This agenda item presents the mid-year budget update report summarizing revenue and expenditure results through the second quarter of the fiscal year. In addition, the report provides updated revenue and expenditure projections for the City’s General Fund through the end of the fiscal year (June 30, 2026). The quarterly budget updates are primarily informational reports that provide periodic updates on SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
financial results relative to the approved budget. This report informs mid-year budget adjustments and the initial development of the City’s fiscal year (FY) 2026-27 budget.
ANALYSIS:
Highlights of the FY 2025-26 mid-year revenue and expenditure results include the following (Attachment A):
• All Funds revenues through the second quarter of FY 2025-26 were $97.16 million or 49% of the amended revenue budget of $198.44 million.
• All Funds expenditures through the second quarter of FY 2025-26 totaled $103.06 million. This, combined with an additional $17.50 million in encumbrances related to executed contracts and purchase orders, represents commitments totaling 51.8% of the amended expenditure budget of $232.79 million.
• General Fund revenues through the second quarter of FY 2025-26 totaled $42.95 million, or 40.2% of the amended budget of $106.89 million.
o Most categories of General Fund revenues appear to be tracking at, or above, the expected budget through the second quarter of the fiscal year.
Property tax revenues are tracking with original budget projections, consistent with overall growth in assessed values, as reported by the County Assessor’s Office. Sales and Use Tax, and Transaction and Use Taxes (Measures E and R), reflect receipts through November 2025 due to the lag time in collections. Projections for year-end sales tax receipts are approximately $469,000 higher than budgeted. Staff will continue to monitor receipts through Q3 and Q4 to inform projections for the FY 2026-27 budget.
Licenses and Permits, primarily related to development activity, are tracking consistently with the budget through the first two quarters of the fiscal year. o Selected General Fund revenues that appear to be lagging budget estimates through the first two quarters include:
Use of Money (Interest Earnings) recorded through the first half of the fiscal year totaled $243,459, or 17.8% of the estimate included in the approved budget. Based on these results, staff project this category will end the fiscal year at $1.03 million, $434,000 below the approved budget. These results are attributable to the current interest rate environment and the rebalancing of the City’s investment portfolio as investments mature.
• General Fund expenditures through the second quarter of FY 2025-26 were $58.85 million. Combined with encumbrances of $2.085 million, this represents a combined commitment of 52.8% of the adjusted budget of $115.37 million.
o Through the second quarter, General Fund personnel costs were recorded at $38.93 million, or 51.6% of the amended budget of $75.49 million. The primary factors contributing to higherthan-expected personnel costs include Fire Department overtime costs, combined with salary savings that are trending below the levels assumed in the development of the FY 2025-26 budget.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
o Departmental non-personnel expenditures are within budget, accounting for selected professional services contracts that reflect as encumbered appropriations as of the end of the second quarter. Year-end projections for non-personnel expenditures are expected to somewhat offset the unfavorable budget variance within overall personnel costs.
General Fund Year-End Projections
Based on results through the first half of the fiscal year, staff has prepared updated projections for General Fund revenue and expenditures through the end of the fiscal year, summarized as follows:
• General Fund revenues are currently projected to end the year at $107.30 million, or $409,000 (0.4%) above the amended budget of $106.89 million.
• General Fund expenditures are projected to end the year at $117.85 million, or $1.70 million (1.5%) above the amended budget of $116.15 million.
General Fund Revenues. As noted above, major contributors to the projected favorable result for General Fund revenues are slightly favorable results for Sales Tax revenues (including Measure E and Measure R). Property Transfer Tax and Transient Occupancy Tax revenues are tracking above budget through the first six months of the fiscal year, offset, however, by revenues from Interest Earnings and other miscellaneous revenue categories, which are tracking slightly below budget. Most other major General Fund revenue categories combine to yield year-end projections largely consistent with budget estimates.
General Fund Expenditures. General Fund expenditures are expected to end the year $1.70 million over budget. This result stems from personnel costs trending roughly $2.7 million over budget, offset by nonpersonnel costs expected to end the year an estimated $1.0 million under budget. This result is in sharp contrast to general fund expenditures over the past several years, where the General Fund typically experienced significant personnel cost savings.
These Mid-Year General Fund revenue and expenditure projections yield a net $1.29 million unfavorable variance to the projected year-end fund balance. Should this result materialize at year-end, the variance would be absorbed by the fund balance (reserves) and would reduce the amount of one-time funding available to be reappropriated for priority needs in future fiscal years.
Attachments A to this report present additional details related to the revenue and expenditure results through the second quarter of FY 2025-26.
Adopted Amended Year-To-Date % of Amended
FY 2025-26 FY2025-26 Actuals FY 2025-26 Year-End
Budget Budget (Dec) Encumb. Budget Projection $ %
Revenues $ 106.39 $ 106.89 $ 42.95 40.2% 107.30 $ $ 0.41 0.4% Expenditures $ 114.03 $ 116.15 $ 59.05 $ 2.09 52.6% 117.85 $ $ 1.70 1.5% Net $ (7.64) $ (9.26) $ (16.10) $ (10.55) $ (1.29)
Year-End
Variance
FY 2025-26 General Fund Budget Projections
as of 12/31/25
(Dollars in $M)
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
FY2025-26 Capital Improvement Plan
Expenditures By Fund
• Through the second quarter of the fiscal year, capital project expenditures were $4.52 million.
When combined with encumbrances (or executed contracts) of $7.20 million, commitments against the amended budget totaled $11.72 million, or 34.3% of the amended budget of $38.65 million.
• The amended capital budget of $34.21 million reflects the original adopted budget of $15.96 million, as well as supplemental appropriations of $18.25 million, including carry-over appropriations approved in the prior fiscal year that are required to support ongoing projects, as well as additional supplemental appropriations approved by the City Council since the start of the fiscal year.
Mid-Year Supplemental Budget Appropriations
As part of the Mid-Year Budget Update, staff is recommending City Council approval of selected budget amendments totaling $569,805 across various funds to provide supplemental FY 2025-26 budget appropriations to reflect new funding, address unanticipated expenditures, and correct selected FY 2025- 26 approved budget appropriations. These supplemental budget appropriations are, in turn, largely supported by offsetting revenue adjustments of $424,826.
In addition, the recommended Mid-Year Budget adjustments include the re-classification of $1,594,000 in grant fund appropriations related to MTC’s One Bay Area Grant. These grant funds were approved for appropriation by the City Council at their meeting on January 20, 2026; staff is recommending that these funds be appropriated within the City’s Grant Fund (283) rather than the Development Services Fund (207) for ease of tracking and reporting.
FUND ACCOUNT DESCRIPTION
ADOPTED
BUDGET
TRANSFERS/
ADJUSTMENTS
REVISED
BUDGET
YTD
EXPENDED ENCUMBRANCES
AVAILABLE
BUDGET
%
USED
205 205 Stormwater $ 1,235,000 $ 3,438,676 $ 4,673,676 $ 1,186,058 $ 2,207,747 $ 1,279,872 72.6% 206 206 Gas Tax 8,764,204 9,636,289 18,400,493 1,187,049 2,416,794 14,796,650 19.6% 241 241 Measure A Open Space 400,000 677,370 1,077,371 487,336 207,262 382,773 64.5% 246 246 Traffic Mitigation 0 76,376 76,376 0 76,376 0 100.0% 401 401 Capital Improvement 704,000 3,044,634 3,748,634 821,167 1,718,027 1,209,440 67.7% 420 420 Essential Facilities 880,000 4,000 884,000 208,237 241,025 434,738 50.8% 430 430 Measure P Library Parcel T 1,500,000 -26,125 1,473,875 578,162 289,557 606,156 58.9% 611 611 Building Maintenance 2,475,000 1,401,760 3,876,760 51,728 45,532 3,779,500 2.5% Grand Total $ 15,958,204 $ 18,252,980 $ 34,211,184 $ 4,519,738 $ 7,202,318 $ 22,489,129 34.3% Fund Revenues Appropriations Comments
Supplemental Budget Appropriations
210 Paramedic/EMS 70,000 Payment of prior year invoices 214 Library Fund 10,000 10,000 Library donation
222 Recreation Revolving Fund 379,826 344,409 Contract Recreation Program Instructors 35,000 35,000 Measure A /FARE Grant - Canal Commumity Garden 237 Loch Lomond Marina CFD #2 59,676 Reflects expenditures per Engineer's Report 246 Traffic Mitigation Fund 50,000 Udare of Traffic Mitigation Guidelines 424,826 569,085
Funding Re-allocations
207 Development Services Fund (1,594,000) (1,594,000) MTC One Bay Area Grant 283 Grant Funds 1,594,000 1,594,000
NET Mid-Year Adjustments $ 424,826 $ 569,085
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
Attachment B to this report presents a summary of the FY 2025-26 budget adjustments being recommended for approval as part of this Mid-Year Budget Update.
Credit Card Service Fee
This section of the report seeks City Council consideration of a recommended credit card service fee.
Finance staff recommends that a fee, not-to-exceed 4%, or the actual cost of the service fee, whichever is less, may be imposed on all credit card, debit card, and electronic fund transfer transactions, at the discretion of the charging department. These fees will cover the cost of accepting credit card payments as established by the credit companies but will not exceed the cost incurred by the City to provide the payment option. Customers can continue to pay with cash, check, or in some cases, e-check, without incurring a service fee.
Government Code 6159 (c) states that a city desiring to authorize the use of a credit card, debit card, or electronic funds transfer pursuant to subdivision (b) shall obtain the approval of its city council.
Additionally, Government Code 6159 (h) states that a city may impose a fee for the use of a credit or debit card or electronic funds transfer, not to exceed the costs incurred by the agency in providing for payment by credit or debit card or electronic funds transfer. The proposed resolution included with this staff report would ensure compliance with all applicable sections of Government Code 6159 related to credit card transactions accepted by a local government entity.
Currently, the City accepts credit card payments, and for some departments, the amount being charged can be a large sum, which generates a significant fee. By adding a service fee to all credit card transactions (at the discretion of the operating department), the City will be able to continue providing this payment option without incurring increased costs.
Credit card processing fees, or service fees, add an additional cost to each credit card transaction. These are charges that merchants (the City) pay to payment service providers and credit card companies to authorize and complete card transactions. In the prior fiscal year, a total of $618,000 in credit card processing fees were incurred by the City (including $183,000 in fees charged to the General Fund).
Mid-Year Personnel Changes
This section of the report seeks Council consideration of recommended personnel actions. Periodically, the Human Resources Department seeks to establish, reallocate, or delete positions to reorganize or restructure staffing to most effectively and efficiently serve the community and city goals.
In conjunction with this mid-year budget review, Staff is recommending the following:
• Principal Engineer – Traffic; create new classification and convert one (1.0 FTE) Senior Civil Engineer (DPW) to 1.0 FTE Principal Engineer – Traffic
o This position will remain in the Western Council of Engineers unit and will include licensing and statutory responsibilities, including serving as the city’s designated Traffic Engineer as outlined in the city’s municipal code. • Update Temporary/Seasonal/Retiree Salary Resolution to Reflect Minimum Wage Increases o As part of the City’s ongoing commitment to fair wages and in compliance with state and local minimum wage laws, staff recommends updating the salary resolution to reflect the most recent minimum wage increases on January 1, 2026. This change will ensure compliance with the state's minimum wage laws and help the City remain competitive in attracting and retaining talent for entry-level positions.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6
o Based on temporary/seasonal hours worked in the past 12 months for classifications impacted, the annual cost of this minimum wage increase is estimated to be $16,000.
RECOMMENDED ACTION:
Staff recommend that the City Council:
1) Accept the FY 2025-26 Mid-Year Budget Update, presenting revenue and expenditure results through the second quarter of the current fiscal year (through the accounting period ended December 31, 2025),
2) Adopt a resolution authorizing supplemental mid-year budget appropriations totaling $569,085 across all funds, as reflected in (Attachment B),
3) Adopt a resolution authorizing the City Manager or designee to apply a credit card processing fee for payments received through credit card, debit card, or electronic transfer transactions to selected transactions (Attachment C),
4) Adopt a resolution approving personnel classification and salary resolution updates related to Traffic Engineering Staffing and Temporary/Seasonal/Retiree minimum wage adjustments (Attachment D).
ATTACHMENTS:
Attachment A – Revenue and Expenditure Results through December 31, 2025 Attachment B – Resolution Authorizing Proposed Mid-Year Supplemental Budget Appropriations Attachment C – Resolution Authorizing Application of Credit Card Processing Fees to Selected Credit Card Transactions
Attachment D – Resolution Approving Personnel Classification and Salary Resolution Updates related to Traffic Engineering Staffing and Temporary/Seasonal/Retiree Minimum Wage Adjustments
1) Principal Engineer - Traffic classification
2) Salary Schedule – Western Council of Engineers
3) Salary Schedule – Temporary/Seasonal/Retirees
ATTACHMENT A
FY 2025-26 Mid-Year (Q2) Budget Update
• All Funds revenues through the second quarter of FY 2025-26 were $97.16 million or 49% of the amended revenue budget of $198.44 million.
• Capital Fund revenues of $9.76 million, representing 110.6% of budgeted revenues ($8.82 million) reflect capital grant fund reimbursements received during the period related to the Pickleweed Field Turf replacement project (wherein revenues were budgeted in prior fiscal year).
All Funds expenditures through the second quarter of FY 2025-26 totaled $103.06 million. This, combined with an additional $17.50 million in encumbrances related to executed contracts and purchase orders, represents 51.8% of the amended expenditure budget of $232.79 million. • The Adjusted FY2025-26 budget reflects additional budget augmentations totaling $9.68 million approved by the City Council (and processed) during the second quarter, as follows:
Meeting Date Fund Description Amount
8/6/2025 281 – Grants STEP Grant $105,000
8/18/2025 206 – Gas Tax Fourth St and West Crescent Drive 34,224 9/2/2025 215 – Library Pickleweed Library Renovation 690,780 10/06/2025 242 – Meas. C Measure C – Wildfire Prevention 1,108,319 10/16/2025 407- Parks CIP Commemorative Benches 6,117
11/17/2025 283 – Grants 350 Merrydale – Property Acquisition 7,000,000 207* - Development Development Services Contracts 734,575 $9,679,015
*Director of Finance authorized to process supplemental budget appropriations within the developmental services fund at the November 17th Council meeting. • On an all-funds basis departments are generally tracking within budget through the first six months of the fiscal year. Departments with significant capital project (or other one-time) appropriations reflect expenditures and encumbrances exceeding 50% of budget through the second quarter, examples include:
o City Manager’s Office – includes funding in support of Community Services projects, including the acquisition of the 350 Merrydale property. o Digital Services – includes encumbrance of funds covering annual information systems support (Xantrion) and enterprise software licenses.
o Community and Economic Development – reflects encumbrances of professional services contracts funded through Development Services Fund to support processing of development applications for major projects subject to developer reimbursement agreements.
o Library and Recreation Department commitments through the second quarter (52.8% of budget) reflect encumbered appropriations related to capital projects. o Non-Departmental expenditures through the second quarter (66.7% of budget) include General Fund Transfers to other funds totaling $6.00 million, approved as part of the FY2025-26 budget.
• General Fund revenues through the second quarter of FY 2025-26 totaled $42.95 million, or 40.2% of the approved budget of $106.39 million.
• Based on results through the first half of the fiscal year, General Fund revenues are projected to end the year at $107.30 million, representing a favorable variance of $409,000 compared to the amended budget estimate.
• Most categories of General Fund revenues appear to be tracking at, or above, the expected budget through the second quarter of the fiscal year.
o Property tax revenues are tracking with original budget projections, consistent with overall growth in assessed values, as reported by the County Assessor’s Office. o Sales and Use Tax, and Transaction and Use Taxes (Measures E and R), reflect receipts through November 2025 due to the lag time in collections. Projections for year-end sales tax receipts are approximately $469,000 higher than budgeted. Staff will continue to monitor receipts through Q3 and Q4, to inform projections for the FY26/27 budget. o Business License Tax receipts recorded through December 31, 2025 reflect one quarterly payment, due to timing of receipts.
o Franchise Fees and Taxes reflect partial payments through December 2025 due to the delay in payments accounting for activity through the first six months of the fiscal year. o Use of Money (Interest Earnings) recorded through the first half of the fiscal year totaled $243,459 or 17.8% of the estimate included in the approved budget. o Licenses and Permits, primarily related to development activity, are tracking consistent with budget through the first two quarters of the fiscal year.
Table 4
FY 2025-26 General Fund Revenues and Transfers-In
Revenue Category
Adopted Budget
FY26
Adjusted Budget
FY26
Actual Thru
Dec FY26 % Budget Projected FY26
Budget
Variance
Taxes
41101 Property Tax (Current Se 21,575,199 21,575,199 11,845,984 54.9% 21,538,152 (37,047) 41102 Property Tax [Current Un 412,145 412,145 392,321 95.2% 432,321 20,176 41103 Supplemental Tax 380,000 380,000 59,656 15.7% 239,656 (140,344) 41104 E.R.A.F. 3,600,000 3,600,000 1,824,377 50.7% 3,648,754 48,754 41105 VLF Property Tax Backfi 7,786,809 7,786,809 3,938,828 50.6% 7,877,655 90,846 41106 State Homeowners Prope 70,000 70,000 10,242 14.6% 70,000 - 41107 Unitary Tax 341,232 341,232 - 0.0% 349,612 8,380
41211 Sales & Use Taxes 25,409,165 25,409,165 8,790,073 34.6% 25,725,005 315,840 41213 Measure E - Use Tax (TU 14,609,000 14,609,000 5,033,897 34.5% 14,725,449 116,449 41214 Measure R - Use Tax (TU 4,870,000 4,870,000 1,664,158 34.2% 4,906,893 36,893 41301 Transient Occupancy Ta 3,900,000 3,900,000 1,444,736 37.0% 4,000,000 100,000 41401 Franchise Fee: Refuse 3,200,000 3,200,000 1,317,250 41.2% 3,161,401 (38,599) 41402 Franchise Tax 1,751,000 1,751,000 171,075 9.8% 1,751,000 - 41501 Business License Tax 2,800,000 2,800,000 573,986 20.5% 2,800,000 - 41701 Property Transfer Tax 1,500,000 1,500,000 674,092 44.9% 1,617,821 117,821 Taxes Total 92,204,550 92,204,550 37,740,674 40.9% 92,843,719 639,169 Licenses and Permits 2,863,245 3,163,245 1,604,261 50.7% 3,208,522 45,277 Fines & Forfeitures 280,112 280,112 196,623 70.2% 403,248 123,136 Use of Money 1,464,558 1,464,558 243,459 17.8% 1,030,219 (434,339) Charges for Services 2,640,792 2,840,792 1,360,818 47.7% 2,927,133 86,341 Intergovernmental 4,056,990 4,056,990 716,637 17.7% 4,156,337 99,347 Other 520,115 520,115 185,263 35.6% 370,526 (149,589)
Transfers 2,360,493 2,360,493 905,246 38.3% 2,360,493 - Grand Total 106,390,855 106,890,855 42,952,983 40.2% 107,300,197 409,342 • General Fund expenditures through the second quarter of FY 2025-26 were recorded at $58.85 million. Combined with encumbrances of $2.09 million, this represents a combined commitment of
52.8% of the adjusted budget of $115.37 million.
• Through the second quarter, General Fund personnel costs are trending significantly ahead of budget and are projected to exceed budget by an estimated $2.7 million at year-end. The primary factors contributing to higher-than-expected personnel costs include:
o Fire Department overtime – contributing to personnel costs within the Fire Department expected to exceed budget by almost $2.0 million.
This projection is mainly attributable to overtime required to backfill to cover mandatory staffing levels as the department is experiencing heightened incidents of paid leaves (including injury, sick leave, vacation and paid-parental leave). Management is assessing evaluating the factors contributing to increased leave usage and is evaluating measures to manage leave-related overtime costs.
The magnitude of the budget variance related to Fire Department overtime is somewhat exacerbated by the department’s overtime budget being set at a level that is “flat” from the prior fiscal year. This level of funding therefore assumed a reduction in overtime hours as compared to prior year, which has not been the case.
o Citywide Salary Savings – the General Fund budget included a projected 3.5% vacancy factor for FY2025-26, which translates to a salary savings factor of $2.74 million. While most departments are showing personnel costs tracking within budget, current trends suggest that the City will fall short of meeting the targeted level of salary savings included in the FY2025-26 budget, by an estimated $1.0 million. As vacant positions across all departments are being filled, there will be the need to re-evaluate the level of salary savings to include in the development of the FY2026/27 budget – particularly as it relates to public safety departments. • Non-personnel expenditures are generally tracking under-budget through the second quarter of the fiscal year, except for the Utilities category where expenditures of $948,052 through December represent 59.5% of the approved citywide utilities budget. o Departments have been directed to re-allocate existing funding, including use of operational contingency funding, to cover utility costs throughout the remainder of the fiscal year.
Table 5
FY 2025-26 General Fund Expenditures and Transfers-Out by Category Expenditure Category
Adopted Budget
FY26
Adjusted Budget
FY26
Actual Thru
Dec FY26 Encumbrances % Budget
Salaries & Wages 42,667,410 42,667,410 22,598,017 - 53.0% Fringe Benefits 32,822,719 32,822,719 16,332,903 - 49.8% Services 12,555,226 14,673,955 5,484,729 1,954,875 50.7% Supplies 1,523,480 1,521,825 650,843 70,790 47.4%
Utilities 1,603,150 1,594,477 948,052 - 59.5%
Other 75,212 84,760 39,485 59,626 116.9%
Debt Service 5,440,792 5,440,792 1,514,625 - 27.8%
Internal Service Charges 7,850,416 7,850,416 3,925,208 - 50.0% Transfers 8,710,417 8,710,417 7,355,208 - 84.4%
Grand Total 113,248,822 115,366,772 58,849,070 2,085,291 52.8% • Departmental expenditures within the General Fund appear to be within budget, accounting for selected professional services contracts that reflect as encumbered appropriations as of the end of the second quarter.
Table 6
FY 2025-26 General Fund Expenditures and Transfers-Out by Department Department Name
Adopted Budget
FY26
Adjusted Budget
FY26
Actual Thru
Dec FY26 Encumbrances % Budget
11 Mayor and City Council 215,612 222,644 98,177 - 44.1% 12 City Attorney 1,353,983 1,353,983 705,838 62,935 56.8% 13 City Clerk 1,029,218 1,059,218 394,923 78,335 44.7%
14 City Manager 5,048,672 5,095,824 2,325,830 121,999 48.0% 25 Finance 2,522,311 2,568,935 1,002,959 96,955 42.8%
26 Digital Services 2,418,447 2,418,447 1,116,554 - 46.2% 27 Human Resources 1,044,640 1,044,640 425,311 107,448 51.0% 31 Police 30,870,951 30,870,951 15,431,462 0 50.0%
33 Fire 25,981,328 25,989,504 13,325,730 49,700 51.5%
44 Public Works 16,114,672 16,222,672 7,903,235 446,329 51.5% 55 Comm. & Econ. Development 6,644,753 7,172,753 2,972,250 347,142 46.3% 66 Library and Recreation 3,531,972 3,531,972 1,967,448 73,909 57.8% 99 Non-departmental 16,472,265 17,815,230 11,179,353 700,540 66.7% Grand Total 113,248,822 115,366,772 58,849,070 2,085,291 52.8% Table 7
FY 2025-26 Revenues by Fund
Table 8
FY 2025-26 Expenditures by Fund
• Funds whose expenditures and/or encumbrances reflect commitments in excess of budgeted appropriations are under review and subject to corrective action:
o Employee Benefits Fund (641) – Charges posted against this fund are typically reallocated to the Retiree Health Benefit Fund (643) at year-end.
Attachment B
RESOLUTION NO.
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL AUTHORIZING FY2025-26 MID-YEAR SUPPLEMENTAL BUDGET APPROPRIATIONS TOTALING $569,085
ACROSS ALL FUNDS
WHEREAS, the City Council approved Resolution No 15422 adopting the fiscal year 2025-2026 budget; and
WHEREAS, the City Council approved other actions during the year to authorize supplemental FY2025-26 budget appropriations; and
WHEREAS, as part of the mid-year budget update, staff have identified the need for selected supplemental budget appropriations, totaling $569,085, as presented in the Mid-Year Budget Update report to the City Council; and
WHEREAS, after examination, and due consideration, the City Council has accepted the report and recommended supplemental budget appropriations; NOW, THEREFORE, BE IT RESOLVED, by the San Rafael City Council that Resolution No.15422 for fiscal year 2025-2026 is further amended to authorize the FY2025-26 supplemental budget appropriations totaling $569,085, as reflected in Exhibit 1 to this resolution.
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a special meeting of the Council of said City on Monday, the 2nd day of March 2026 by the following vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
__________________________
LINDSAY LARA, City Clerk
Exhibit 1
Recommended FY2025-26 Mid-Year
Supplemental Budget Appropriations
Dept. Amount Totals Notes
210 Paramedic/EMS Fund SRFD $ 70,000 Payment of prior year invoices Sub-total $ 70,000 ambulance billing rates approved with Master Fee Schedule 214 Library Fund LIB $ 10,000 Library donation
$ 10,000
222 Recreation Revolving Fund Rec $ 344,409 Contract Recreation Program Instructors Rec $ 35,000 Measure A /FARE Grant - Canal Commumity Garden Sub-total $ 379,409
237 Loch Lomond Marina CFD #2 DPW $ 59,676 Reflects expenditures per Engineer's Report Sub-total $ 59,676
246 Traffic Mitigation Fund DPW $ 50,000
Sub-total $ 50,000 Update to Traffic Mitigatioon Guidelines Sub-total FY 2025-26 Mid-Year Supplemental Budget Appropriations $ 569,085 207 Development Services Fund CEDD $ (1,594,000) Re-allocation of MTC One Bay Area Grant Funds 283 Grant Funds CEDD $ 1,594,000 Re-allocation of MTC One Bay Area Grant Funds NET Mid-Year Budget Adjustments $ 569,085
Fund
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING
THE CITY MANAGER OR DESIGNEE TO APPLY A CREDIT CARD PROCESSING FEE FOR
PAYMENTS RECEIVED THROUGH CREDIT CARD, DEBIT CARD OR ELECTRONIC
TRANSFER TRANSACTIONS
WHEREAS, the City Council is required by Government Code 6159 (c) to authorize the use of a credit card, debit card, or electronic funds transfer; and WHEREAS, the City Council is allowed by Government Code 6159 (h) to authorize imposing a fee for the use of a credit or debit card or electronic funds transfer, not to exceed the cost incurred by the City; and,
WHEREAS, in the prior fiscal year, the City incurred credit card processing fees in excess of $618,000, including $183,000 from the General Fund and $280,000 from the Parking Enterprise Fund; and,
WHEREAS, customers can continue to pay with cash, check or in some cases, electronic check, in order to not incur a credit card processing fee:
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Rafael ratifies the use of credit cards and authorizes the City Manager or designee to apply a credit card processing fee not to exceed 4% of the value of the transaction, or the actual cost of processing the transaction, whichever is less, to recover the City’s costs providing for payment by credit or debit card or electronic funds transfer; and,
BE IT FURTHER RESOLVED that a credit card processing fee shall not be applied, where prohibited by terms of applicate credit card processing agreements.
I, Lindsay Lara, Clerk of the City of San Rafael, herby certify that the foregoing resolution was duly and regularly introduced and adopted at ta regular meeting of the City Council of the City of San Rafael on Monday, the 2nd day of March 2026, by the following vote to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
______________________
LINDSAY LARA, City Clerk
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING
PERSONNEL CLASSIFICATION AND SALARY RESOLUTION UPDATES RELATED TO
TRAFFIC ENGINEERING STAFFING AND TEMPORARY/SEASONAL/RETIREE MINIMUM
WAGE ADJUSTMENTS
WHEREAS, the City must, from time to time, add, delete, or adjust job classifications, job specifications, and compensation to meet the changing needs of the community and to ensure efficient and effective delivery of City services; and
WHEREAS, the Human Resources Department periodically evaluates staffing structures to ensure alignment with operational needs, statutory requirements, and industry standards; and WHEREAS, staff recommends establishing a Principal Engineer – Traffic classification and converting one (1) Senior Civil Engineer (Public Works) position to Principal Engineer – Traffic; and
WHEREAS, this position will remain in the Western Council of Engineers bargaining unit and will include licensing and statutory responsibilities, including serving as the City’s designated Traffic Engineer as outlined in the City’s Municipal Code; and WHEREAS, staff further recommends updating the Temporary / Seasonal / Retiree Salary Resolution to reflect minimum wage increases effective January 1, 2026, in compliance with state and local minimum wage laws and to support the City’s commitment to fair and competitive wages; and
WHEREAS, based on temporary and seasonal hours worked in the prior twelve (12) months for impacted classifications, the estimated annual fiscal impact of these minimum wage increases is approximately $6,884.42; and
WHEREAS, these personnel and compensation adjustments are consistent with the City’s practice of periodically updating classifications and salary schedules to reflect operational and regulatory needs.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Rafael hereby approves the recommended personnel classification and compensation changes included in the Staff Report and attached exhibits for this Resolution, including:
1. Establishment of the Principal Engineer – Traffic classification;
2. Conversion of one (1) Senior Civil Engineer position to Principal Engineer – Traffic;
3. Updates to the Western Council of Engineers Salary Schedules;
4. Updates to the Temporary / Seasonal / Retiree Salary Schedule to reflect minimum wage increases effective January 1, 2026.
BE IT FURTHER RESOLVED that the City Council authorizes incorporation of these changes into the City’s personnel and salary resolutions and related exhibits.
I, Lindsay Lara, Clerk of the City of San Rafael, hereby certify foregoing resolution was duly and regularly introduced and adopted at a regular meeting on the City Council of said City held on Monday, the 2nd day of March 2026, by the following vote to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
______________________
LINDSAY LARA, City Clerk
City of San Rafael
Job Class Specification
Job Title: Principal Civil Engineer – Traffic
(Public Works)
(Including designation as City Traffic Engineer per San Rafael Municipal Code §5.08.050) SUMMARY:
Under general direction, the Principal Civil Engineer – Traffic serves as the City’s designated City Traffic Engineer, carrying licensing and statutory authority for all municipal traffic engineering functions as established in the San Rafael Municipal Code Section 5.08.050. This position oversees the Traffic Engineering Division and is responsible for the development, implementation, and administration of the City’s traffic programs, standards, and policies; facilitates advisory committees; represents the City in regional and state transportation efforts; and provides expert guidance on multimodal transportation planning, traffic operations, safety, and regulatory compliance.
This classification manages complex and sensitive traffic engineering projects, supervises professional and technical staff, and serves as the City’s primary authority on traffic engineering decisions, policies, standards, and interpretations.
DISTINGUISHING CHARACTERISTICS:
This is the highest-level engineering classification within the Traffic Engineering Division. The Principal Civil Engineer – Traffic is distinguished from the Senior Civil Engineer by the former’s statutory role as the City Traffic Engineer, elevated authority for citywide traffic engineering decisions, responsibility for developing and enforcing traffic-related policy, and its leadership in regional transportation coordination.
ESSENTIAL DUTIES AND RESPONSIBILITIES:
• Serves as the City Traffic Engineer, exercising all powers and duties as defined by San Rafael Municipal Code §5.08.050.
• Establishes traffic engineering policies, guidelines, and practices in compliance with State and Federal law.
• Leads the Traffic Engineering Division and establishes work plans, priorities, and goals. • Facilitates and provides support to advisory committees and commissions. • Represents the City with regional and state transportation agencies. • Oversees multimodal transportation projects including traffic signal upgrades, safety improvements, ITS deployments, and active transportation projects. • Directs staff in preparing engineering plans, specifications, studies, and traffic impact analyses.
• Ensures compliance with CEQA/NEPA, Public Contract Code, and funding requirements.
• Responds to public, business, and elected official inquiries regarding traffic and safety. • Coordinates traffic engineering activities with Police, Fire, Planning, Parking, and external agencies.
• Supervises and trains engineering and technical staff. • Reviews development proposals for traffic impacts and required mitigation. • Prepares and signs engineering drawings, reports, and legal documents. • Performs related duties as required.
KNOWLEDGE OF:
• Municipal traffic engineering, transportation planning, multimodal safety, and traffic operations.
• Applicable State and Federal regulations, including CA MUTCD. • Traffic study techniques, traffic models, speed surveys, and safety investigations. • Principles of supervision, budgeting, and program administration. • Engineering and traffic operations software.
ABILITY TO:
• Serve effectively as the statutory City Traffic Engineer with independent judgment. • Develop and implement traffic engineering policies and standards. • Supervise, train, and evaluate staff.
• Conduct and interpret traffic operational studies and analyses. • Communicate complex information clearly to various audiences. • Develop, manage, and deliver complex traffic engineering projects. • Maintain effective working relationships.
• Use computers and engineering software effectively.
EDUCATION AND EXPERIENCE:
• Bachelor’s degree in Civil Engineering.
• Six (6) years of progressively responsible engineering experience, including complex traffic engineering work and at least two (2) years of supervisory experience. • A master’s degree may substitute for one (1) year of experience.
LICENSES:
• Current valid registration as a Civil Engineer in the State of California. • Current valid registration as a Professional Traffic Engineer (TE) in the State of California.
• Valid driver’s license.
PHYSICAL DEMANDS:
The physical demands described here are representative of those that must be met by an employee to successfully perform the essential function of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essentialfunctions.
While performing the duties of this job, the employee is regularly required to sit and talk or hear. The employee frequently is required to use hands to finger, handle, or feel and reach with handsand arms. The employee is occasionally required to stand and walk. The employee must regularly lift and/or move up to 10 pounds and occasionally lift and/or move up to 25 pounds.
Specific vision abilities required by this job include close vision, distance vision, color vision, peripheral vision, depth perception, and ability to adjust focus.
WORK ENVIRONMENT:
The work environment characteristics described here are representative of those an employee encounters while performing the essential functions of this job. Reasonable accommodation may be made to enable individuals with disabilities to perform the essential functions.
While performing the duties of this job, the employee regularly works in evenings or on weekends and indoor conditions and regularly works near video display. The employee is regularly required to sit; use hands to finger, handle, or feel; and talk or hear. The employee frequently is required to stand, walk, reach with hands and arms, and taste or smell. The employee is occasionally required to climb or balance and stoop, kneel, crouch, or crawl, lift and/or move up to 50 pounds. Specific vision abilities required by this job include close vision, distance vision, color vision, peripheral vision, depth perception, and ability to adjust focus.
The employee is occasionally exposed to outside weather conditions and uses personal vehicle. The noise level in the work environment is usually moderate.
Prepared by: Marissa Sanchez
Prepared Date: December 1, 2025
Approved Date: December 12, 2025
FLSA status: Non-exempt
Grade Position A B C D E
7333 Assistant Engineer $ 9,362 $ 9,830 $ 10,322 $ 10,838 $ 11,380 7229 Associate Civil Engineer $ 10,335 $ 10,852 $ 11,394 $ 11,964 $ 12,562 7277 Engineering Technician I $ 6,635 $ 6,967 $ 7,315 $ 7,681 $ 8,065 7230 Engineering Technician II $ 7,498 $ 7,873 $ 8,267 $ 8,680 $ 9,114 7330 Junior Engineer $ 7,697 $ 8,082 $ 8,486 $ 8,910 $ 9,355 2312 Principal Engineer - Traffic $ 13,079 $ 13,732 $ 14,419 $ 15,140 $ 15,897 2311 Senior Civil Engineer (PW) $ 11,968 $ 12,566 $ 13,195 $ 13,854 $ 14,547 7331 Traffic Engineer $ 10,335 $ 10,852 $ 11,394 $ 11,964 $ 12,562 4793 Traffic Engineering Technician I $ 6,635 $ 6,967 $ 7,315 $ 7,681 $ 8,065 4792 Traffic Engineering Technician II $ 7,498 $ 7,873 $ 8,267 $ 8,680 $ 9,114 WCE - San Rafael
Salary Schedule
Effective July 1, 2025
Grade Position A B C D E
7333 Assistant Engineer $ 9,877 $ 10,371 $ 10,890 $ 11,434 $ 12,006 7229 Associate Civil Engineer $ 10,903 $ 11,448 $ 12,021 $ 12,622 $ 13,253 7277 Engineering Technician I $ 7,000 $ 7,350 $ 7,718 $ 8,104 $ 8,509 7230 Engineering Technician II $ 7,910 $ 8,306 $ 8,721 $ 9,157 $ 9,615 7330 Junior Engineer $ 8,197 $ 8,607 $ 9,037 $ 9,489 $ 9,963 2312 Principal Engineer - Traffic $ 13,602 $ 14,282 $ 14,996 $ 15,746 $ 16,533 2311 Senior Civil Engineer (PW) $ 12,626 $ 13,257 $ 13,920 $ 14,616 $ 15,347 7331 Traffic Engineer $ 10,903 $ 11,448 $ 12,021 $ 12,622 $ 13,253 4793 Traffic Engineering Technician I $ 7,000 $ 7,350 $ 7,718 $ 8,104 $ 8,509 4792 Traffic Engineering Technician II $ 7,910 $ 8,306 $ 8,721 $ 9,157 $ 9,615 WCE - San Rafael
Salary Schedule
Effective July 1, 2026
Temporary / Seasonal / Retiree
Salary Schedule
Effective January 1, 2026
Grade Job Title A B C D E F G H I J
9916 Administrative Specialist $ 29.04 $ 30.49 $ 32.02 $ 33.62 $ 35.30 $ 37.06 $ 38.92 $ 40.86 $ 42.91 $ 45.05 9903 Child Care Aide $ 16.90 $ 17.75 $ 18.63 $ 19.56 $ 20.54 $ 21.57 $ 22.65 $ 23.78 $ 24.97 $ 26.22 9937 Child Care Specialist $ 21.50 $ 22.58 $ 23.70 $ 24.89 $ 26.13 $ 27.44 $ 28.81 $ 30.25 $ 31.77 $ 33.35 9935 Dispatcher Temp $ 30.46 $ 31.99 $ 33.59 $ 35.27 $ 37.03 $ 38.88 $ 40.82 $ 42.87 $ 45.01 $ 47.26 9921 Events Specialist $ 16.90 $ 17.75 $ 18.63 $ 19.56 $ 20.54 $ 21.57 $ 22.65 $ 23.78 $ 24.97 $ 26.22 9922 Facilities Attendant $ 23.42 $ 24.59 $ 25.82 $ 27.11 $ 28.47 $ 29.89 $ 31.39 $ 32.95 $ 34.60 $ 36.33 9918 Head Lifeguard $ 19.25 $ 20.21 $ 21.22 $ 22.28 $ 23.40 $ 24.57 $ 25.80 $ 27.09 $ 28.44 $ 29.86 9923 Intern $ 16.90 $ 17.75 $ 18.63 $ 19.56 $ 20.54 $ 21.57 $ 22.65 $ 23.78 $ 24.97 $ 26.22 9932 Library Page $ 16.90 $ 17.75 $ 18.63 $ 19.56 $ 20.54 $ 21.57 $ 22.65 $ 23.78 $ 24.97 $ 26.22 9902 Lifeguard $ 17.00 $ 17.85 $ 18.74 $ 19.68 $ 20.66 $ 21.70 $ 22.78 $ 23.92 $ 25.12 $ 26.37 9907 Maintenance Temp $ 25.83 $ 27.12 $ 28.48 $ 29.90 $ 31.40 $ 32.97 $ 34.62 $ 36.35 $ 38.17 $ 40.07 9924 Office Aide $ 24.46 $ 25.68 $ 26.97 $ 28.31 $ 29.73 $ 31.22 $ 32.78 $ 34.42 $ 36.14 $ 37.94 9928 Officer Temp $ 26.50 $ 27.83 $ 29.22 $ 30.68 $ 32.21 $ 33.82 $ 35.51 $ 37.29 $ 39.15 $ 41.11 9908 Paraprofessional Temp $ 21.20 $ 22.26 $ 23.37 $ 24.54 $ 25.77 $ 27.06 $ 28.41 $ 29.83 $ 31.32 $ 32.89 9925 Parking Aide $ 16.90 $ 17.75 $ 18.63 $ 19.56 $ 20.54 $ 21.57 $ 22.65 $ 23.78 $ 24.97 $ 26.22 9929 Pool Cashier $ 16.90 $ 17.75 $ 18.63 $ 19.56 $ 20.54 $ 21.57 $ 22.65 $ 23.78 $ 24.97 $ 26.22 9930 Pool Manager $ 21.20 $ 22.26 $ 23.37 $ 24.54 $ 25.77 $ 27.06 $ 28.41 $ 29.83 $ 31.32 $ 32.89 9926 Records Temp $ 26.60 $ 27.93 $ 29.32 $ 30.79 $ 32.33 $ 33.95 $ 35.64 $ 37.43 $ 39.30 $ 41.26 9910 Recreation Leader $ 16.90 $ 17.75 $ 18.63 $ 19.56 $ 20.54 $ 21.57 $ 22.65 $ 23.78 $ 24.97 $ 26.22 9911 Recreation Specialist $ 22.00 $ 23.10 $ 24.26 $ 25.47 $ 26.74 $ 28.08 $ 29.48 $ 30.96 $ 32.50 $ 34.13 9933 Substitute Librarian $ 33.28 $ 34.94 $ 36.69 $ 38.53 $ 40.45 $ 42.47 $ 44.60 $ 46.83 $ 49.17 $ 51.63 9931 Substitute Library Assistant $ 23.50 $ 24.68 $ 25.91 $ 27.20 $ 28.56 $ 29.99 $ 31.49 $ 33.07 $ 34.72 $ 36.46 9934 Swim Instructor $ 17.50 $ 18.38 $ 19.29 $ 20.26 $ 21.27 $ 22.33 $ 23.45 $ 24.62 $ 25.86 $ 27.15