____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: _______________________
Disposition: ___________________________
Agenda Item No: 4.b
Meeting Date: September 8, 2026
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Finance
Prepared by: Shawn Plate, Finance Manager City Manager Approval: ______________ TOPIC: FISCAL YEAR 2025-26 UNAUDITED RESULTS AND BUDGET AMENDMENTS SUBJECT: FY2025-26 YEAR-END BUDGET UPDATE AND RESOLUTIONS AUTHORIZING AMENDMENTS TO THE CITY OF SAN RAFAEL BUDGET FOR FISCAL YEAR 2025- 26 FOR THE PURPOSES OF CONFIRMING AUTHORIZED APPROPRIATIONS AND TRANSFERS AND AUTHORIZING AMENDMENTS TO THE FISCAL YEAR 2026-27 BUDGET TO REFLECT CARRY-OVER OF AVAILABLE UNENCUMBERED FY2025-26 APPROPRIATIONS FOR SPECIFIED PURPOSES, TOTALING $16,477,797 RECOMMENDATION:
1) Accept the report presenting preliminary, Fiscal Year (FY) 2025-26 unaudited financial results for the fiscal year ended June 30, 2026;
2) Adopt a resolution authorizing amendments to the FY2025-26 budget for the purposes of confirming authorized appropriations and transfers (Attachment A); and 3) Adopt a resolution authorizing amendments to the FY2026-27 budget to reflect carry-over of available unencumbered FY2025-26 appropriations for specified purposes, totaling $16,477,797 (Attachment B).
BACKGROUND:
This agenda item presents preliminary, unaudited financial results for the fiscal year ended June 30, 2026. Staff is in the process of completing the fiscal year-end accounting close and reviewing revenue and expenditure activity within the General Fund, Special Revenue Funds, Capital Funds and other restricted funds. This review has identified the need for additional year-end budget adjustments for which City Council approval is requested.
In addition, as part of the fiscal year-end process staff have identified specific unencumbered FY2025- 26 budget appropriations for which City Council action is requested to carry-over these appropriations, effectively amending the FY2026-27 adopted budget.
These unencumbered carry-over appropriations are limited to funding approved by the City Council in the prior fiscal year that are required to support planned projects or activities in the new fiscal year, and SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
for which no purchase orders or contracts were executed prior to the end of the fiscal year to otherwise encumber these funds.
ANALYSIS:
Preliminary (Unaudited) FY 2025-26 Revenue and Expenditure Results All Funds
Table 1 provides a summary of preliminary, unaudited FY2025-26 revenue and expenditure results through the fourth quarter of the fiscal year, ending June 30, 2026. • All Funds revenues through June 30, 2026, were recorded at $206.68 million, which represents 101.8% of the amended budget of $202.94 million.
• All Funds expenditures and encumbrances for the same period were recorded at $206.21 million, or 86.3% of the amended FY2025-26 budget of $238.99 million. • This agenda item includes a recommendation for the City Council to authorize the carry-forward of available unencumbered FY2025-26 appropriations totaling $16,477,797, effectively reappropriating these funds in FY2026-27, for specified purposes.
Table 1: All Funds Revenue and Expenditure Results (through 6/30/26) (*) Note: Year-end expenditures include actual expenditures ($192,864,985) plus encumbrances ($1,258,337).
General Fund
Revenues: The original FY2025-26 budget, adopted on June 2, 2025, projected $106.39 million in revenues. Updated revenue projections through the third quarter (presented to the City Council June 15, 2026) were $109.39 million.
• General Fund revenues (unaudited) through June 30, 2026, were recorded at $107.92 million, or
1.0% above the amended budget, and 1.4% below the projected results.
All Funds
Adopted Budget
FY 2025-26
Amended Budget
FY 2025-26
Unaudited Year-End
Results*
% of Amended
Budget
Revenues: $ 178,077,497 $ 191,044,223 $ 194,513,095 101.8% Transfers in: 11,175,910 11,891,690 12,171,717 102.4%
Total Resources: $ 189,253,407 $ 202,935,913 $ 206,684,812 101.8% Expenditures: $ 181,119,346 $ 227,095,852 $ 194,123,322 85.5% Transfers out: 11,175,910 11,891,690 12,087,275 101.6%
Total Appropriations: $ 192,295,256 $ 238,987,542 $ 206,210,597 86.3% Net Results: $ (3,041,849) $ (36,051,629) $ 474,215
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
• General Fund revenues were $1.02 million over the amended budget, and $1.47 million under projections assumed in the development of the FY2026-27 budget. o This result is attributable to strong sales tax receipts earlier in the fiscal year that began to taper off towards the end of the year.
o The largest impact on the results as reflected against the projection was the recording of a $0.6 million in unrealized losses on the investment portfolio. This comes from rising interest rates that temporarily depress the value of current holdings within the portfolio.
Expenditures: The FY 2025-26 adopted budget provided appropriations of $113.24 million. The current amended FY2025-26 General Fund budget currently stands at $115.37 million, reflecting supplemental appropriations for prior year unencumbered carry-overs relating to Enterprise Resource Planning Implementation, Community Well-Being and Inclusive Engagement Initiatives, and other projects and initiatives.
• Expenditures and encumbrances through the fourth quarter of the fiscal year were recorded at $114.10 million, or 98.9% of the amended budget.
• Year-end General Fund expenditures results are generally favorable in relation to the projections assumed in the development of the FY2026-27 budget, when accounting for the recommendations included in this agenda item requesting both (1) authorization to carry over $1.31 million in unencumbered General Fund budget appropriations and (2) authorization for supplemental appropriations.
Table 2: FY 2025-26 General Fund Results (through 6/30/26) and Year-End Projections (*) Note: Year-end expenditures include actual expenditures ($104,716,330) plus encumbrances ($217,448).
Operating results: The preliminary, unaudited General Fund revenue and expenditure results combine to yield a net $6.19 million draw-down of fund balance as of June 30, 2026. This represents a favorable variance of $2.29 million compared to the amended budget and $2.69 million compared to the year-end projections assumed in the development of the FY2026-27 budget.
General Fund personnel expenditures ended the fiscal year $1.80 million over budget - and $0.9 million below the budget projection presented to the City Council on May 18th. Non-personnel expenditures (supplies and services) ended the year $3.1 million under budget. Accounting for the General Fund unencumbered carry-over recommendations included in this report, unaudited General Fund year-end General Fund
Adopted Budget
FY 2025-26
Amended Budget
FY 2025-26
Projected Year-End
Results Variance
Unaudited YearEnd Results* Variance
Revenues: $ 104,030,362 $ 104,530,362 $ 107,031,145 $ 2,500,783 $ 105,822,137 $ 1,291,775 Transfers in: 2,360,493 2,360,493 2,360,493 - 2,095,516 (264,977) Total Resources: $ 106,390,855 $ 106,890,855 $ 109,391,638 $ 2,500,783 $ 107,917,653 $ 1,026,798 Expenditures: $ 104,538,405 $ 106,656,355 $ 109,556,287 $ 2,899,932 $ 104,933,778 $ (1,722,577) Transfers out: 8,710,417 8,710,417 8,710,417 - 9,170,979 460,562 Total Appropriations: $ 113,248,822 $ 115,366,772 $ 118,266,704 $ 2,899,932 $ 114,104,757 $ (1,262,015) Net Results: $ (6,857,967) $ (8,475,917) $ (8,875,066) $ (399,149) $ (6,187,104) $ 2,288,813 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
commitments would end the fiscal year with a $0.6 million favorable result relative to the assumptions used in the development of the FY2026-27 budget.
FY2025-26 Year-End Budget Adjustments/Corrections – (Attachment A) Staff is in process of completing the accounting close for the fiscal year ended June 30, 2026, and are reviewing the revenues and expenditure activity in the General Fund, Special Revenue funds and other special purpose funds. This review has identified the need for additional budget adjustments for which City Council action is requested.
The purpose of these amendments is to formally authorize the appropriations supporting expenditures and transfers required in certain funds to fulfill their respective purposes and functions through June 30, 2026. City Council approval of the proposed resolution provides formal authority to incorporate adjustments as part of the final FY 2025-26 budget, summarized as follows:
Details of the proposed budget amendments are reflected in Attachment A to this report, and described as follows:
General Fund
Transfers-Out:
• Amendment to reflect the anticipated transfer of $545,004 from the General Fund to the Recreation Revolving Fund (222) in order to resolve the fund’s deficit fund balance. The Recreation Revolving Fund began the year with a deficit balance of $70,059 that was unable to be resolved through current year activity. The additional transfer of $545,004 addresses the deficit and brings the fund balance to zero at year end.
General Fund
Adopted Budget
FY 2025-26
Amended Budget
FY 2025-26
Unaudited Year-End
Results Encumbrances Available
Personnel $ 75,490,129 $ 75,490,129 $ 77,290,887 $ 1,800,758 Non-personnel 37,758,693 39,876,643 36,596,421 217,448 (3,062,774) Totals $ 113,248,822 $ 115,366,772 $ 113,887,308 $ 217,448 $ (1,262,016) Revenues:
Fund Current Budget
Adjustment to
resources
Adjustment to
transfers in Revised Budget
210 - Emergency Medical Services $ 9,599,809 $ 460,000 $ 10,059,809 222 - Recreation 5,206,404 $ 545,004 5,751,408
420 - Measure E Essential Facilities 396,819 84,442 481,261 Total Revenue Adjustments $ 460,000 $ 629,446
Expenditures:
Fund Current Budget
Adjustment to
appropriations
Adjustment to
transfers out Revised Budget
101 - General Fund $ 115,366,772 $ 629,446 $ 115,996,218 210 - Emergency Medical Services 10,345,208 $ 460,000 10,805,208 Total Expenditure Adjustments $ 460,000 $ 629,446
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
• Amendment to reflect the anticipated transfer of $84,442 from the General Fund to the Essential Facilities Capital Projects Fund (420) consistent with prior City Council policy directing one-third of Measure E Transaction and Use Tax, less debt service on the outstanding 2018 bonds, be transferred to support specific capital projects as reflected in the Essential Facilities Master Plan.
This amount is in addition to the $290,417 previously budgeted for the transfer, as transactions and use tax revenues exceeded budget.
Other Funds
Staff is requesting the approval of a total of $1,089,446 in increased resources and $460,000 in increased appropriations to Other Funds, reflecting the amendments included above as well as selected adjustments impacting only other funds, including:
Emergency Medical Services Special Revenue Fund (210)
• Amendment to reflect additional appropriations of $460,000 to be funded by increased transport cost-recovery revenues of $460,000. The Emergency Medical Services fund has incurred an additional $120,000 in non-personnel expenditures resulting from the unanticipated billing of prioryear training costs and greater-than-anticipated increases in medical supply costs. Also, as a result of increased injury pay and corresponding overtime, the fund is projected to exceed its personnel budget, necessitating additional appropriations of $340,000.
FY2025-26 Unencumbered Carry-Over Requests - (Attachment B) This staff report includes a recommended City Council action to approve a resolution authorizing reappropriation of $16,477,797 in funding included in the prior year budget for specific projects and expenditures for which no purchase order or contract was issued prior to the end of the FY2025-26. As such, City Council action is requested to amend the FY2026-27 budget to reflect re-appropriation of these funds for the purpose intended. Of this amount $6,217,552 represents carry-over appropriations supporting operational projects and initiatives, and $10,260,245 represents carry-over appropriations supporting capital projects approved in the prior fiscal year. The requested FY 2025-26 carry-over appropriations are summarized in Exhibit 1 (Attachment 2).
FISCAL IMPACT:
The recommended year-end adjustments to the FY2025-26 amended budget would authorize a transfer of a total $629,446 from the General Fund, with $545,004 to the Recreation Fund (222) to cover expenditures that otherwise would result in a negative ending fund balance and $84,442 to the Measure E Capital Projects Fund (420) to reflect a portion of transactions and use tax receipts in excess of budget.
The adjustments would also formally authorize the expenditure of an additional $460,000 in the Emergency Medical Services Fund (210) to resolve budget overages, as well as increase revenue estimates by the same amount. The actual impact of these transactions is already reflected in general ledger activity for the year presented above, the impact is to formalize the authorization for these items that reflect unanticipated budget overages and codify them into the FY 2025-26 amended budget.
The recommended amendments to the FY2026-27 approved budget representing carry-forward of available unencumbered budget appropriations (for specified purposes) would effectively increase FY2026-27 budget appropriations by $16,477,797 across several funds. Of this amount, $6,217,552 represents carry-forward of operating budget appropriations, including $1,309,439 in General Fund (101) SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6
appropriations, $7,921 in Crime Prevention Fund (204) appropriations, $728,093 in Development Services Fund (207) appropriations, $16,739 in Library Fund (214) appropriations, $40,356 in Library Assessment Fund (215) appropriations, $1,478,462 in Measure C – Wildfire Mitigation Fund (242) appropriations, $483,282 in Public Safety Grants Fund (281) appropriations, $1,381,222 in Grants Fund (283) appropriations, $63,442 in Measure P Library Parcel Tax (430) appropriations, and $708,596 in Technology Fund (612) appropriations.
A total of $10,260,245 in unencumbered appropriations supporting capital improvement projects budgeted in FY2025-26 would amend the FY2026-27 capital budget, including $451,194 within the Stormwater Fund (205), $9,441,339 within the Gas Tax (206) Fund, $105,792 within the Capital Fund (401), $221,160 within the Measure E Capital Projects Fund (420), and $40,760 within the Building Fund (611).
OPTIONS:
The City Council has the following options to consider on this matter:
1. Staff’s recommended action (approve, accept, etc.)
2. Adopt resolution with modifications.
3. Direct staff to return with more information.
4. Take no action.
RECOMMENDED ACTION:
1. Accept the report presenting preliminary, FY2025-26 unaudited financial results for the fiscal year ended June 30, 2026;
2. Adopt a resolution authorizing amendments to the FY 2025-26 budget for the purpose of confirming authorized appropriations and transfers (Attachment A); and
3. Adopt a resolution authorizing amendments to the FY 2026-27 budget to reflect carry-over of unencumbered FY 2025-26 appropriations for specified purposes, totaling $16,477,797 (Attachment B).
ATTACHMENTS:
Attachment A – Resolution authorizing amendments to the FY2025-26 budget Attachment B – Resolution authorizing amendments to the FY2026-27 budget to reflect carryover of unencumbered FY2025-26 budget appropriations, for specified purposes.
Exhibit 1 – List of Unencumbered Carry-Forward Appropriations Attachment A
RESOLUTION NO.
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL ADOPTING AMENDMENTS TO THE CITY OF SAN RAFAEL BUDGET FOR FISCAL YEAR 2025-2026 FOR THE
PURPOSE OF CONFIRMING AUTHORIZED APPROPRIATIONS AND TRANSFERS 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 spending; and
WHEREAS, as part of the fiscal year-end closing process, staff has reviewed and analyzed actual revenues, expenditures and transfers through June 30, 2026, has identified a need for additional budget adjustments, and has submitted its analysis and recommendations in a report to the City Council; and
WHEREAS, after examination, and due consideration, the City Council has accepted the same report and recommendations;
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 following adjustments to resources and appropriations to selected funds:
Revenues:
Fund Current Budget
Adjustment to
resources
Adjustment to
transfers in Revised Budget
210 - Emergency Medical Services $ 9,599,809 $ 460,000 $ 10,059,809 222 - Recreation 5,206,404 $ 545,004 5,751,408
420 - Measure E Essential Facilities 396,819 84,442 481,261 Total Revenue Adjustments $ 460,000 $ 629,446
Expenditures:
Fund Current Budget
Adjustment to
appropriations
Adjustment to
transfers out Revised Budget
101 - General Fund $ 115,366,772 $ 629,446 $ 115,996,218 210 - Emergency Medical Services 10,345,208 $ 460,000 10,805,208 Total Expenditure Adjustments $ 460,000 $ 629,446
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 Tuesday, the 8th day of September 2026 by the following vote, to wit:
Attachment A
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
__________________________
LINDSAY LARA, City Clerk
Attachment B
RESOLUTION NO.
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL AUTHORIZING
AMENDMENTS TO THE CITY OF SAN RAFAEL BUDGET FOR FISCAL YEAR 2026- 2027 TO REFLECT CARRY-OVER OF AVAILABLE UNENCUMBERED FY2025-26 APPROPRIATIONS FOR SPEFICIED PURPOSES TOTALLING $16,477,797 WHEREAS, the City Council approved Resolution No. 15583 adopting the fiscal year 2026-2027 budget; and
WHEREAS, Resolution No. 15583 provided authorization to carry-forward encumbered appropriations from fiscal year (FY) 2025-26 and reappropriate these funds in fiscal year 2026-27 to be used solely to pay for the remaining portion of commitments stemming from executed contracts and purchase orders, as of June 30, 2026; and
WHEREAS, Resolution No. 15583 further provided that authorization to carryover unencumbered FY2025-26 appropriations supporting capital projects and one-time operational expenses for which contracts or purchase orders were not executed as of June 30, 2026, would be subject to future City Council action; and WHEREAS, as part of the fiscal year-end closing process, staff has reviewed and analyzed available unencumbered FY2025-26 budget appropriations that were approved for specific capital projects and operational initiatives, and for which funding is needed to support these workplan activities within the current fiscal year and has submitted its analysis and recommendations in a report to the City Council; and WHEREAS, after examination, and due consideration, the City Council has accepted the same report and recommendations;
NOW, THEREFORE, BE IT RESOLVED, by the San Rafael City Council that Resolution No. 15583 approving the citywide budget and Capital Improvement Budget for fiscal year 2026-2027 is hereby further amended to authorize the following supplemental budget appropriations totaling $16,477,797, representing carry-over of available unencumbered FY2025-26 appropriations, requested for specific purposes (Exhibit 1).
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 Tuesday, the 8th day of September 2026 by the following vote, to wit:
Attachment B
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
__________________________
LINDSAY LARA, City Clerk
FY 2025-26
Unencumbered Carry-Over Appropriations
Exbhibit 1
Fund Dept Description Operating Capital Fund Totals
101 Finance Maze-Annual Audit Contract 56,758 $ 56,758 $ City Clerk Records Management System, Elections, Stipends 96,093 96,093 Comm Econ Dev ADA Transition Plan (Phase 1) 100,000 100,000 City Manager Ballot and Revenue Measure, Encampment Cleanup 106,588 106,588 Non-Depy'l Enterprise Resource Planning (ERP) Implementation 550,000 550,000 Community Well-Being and Inclusive Engagement Initiatives 400,000 400,000 Sub-total General Fund (101) $ 1,309,439
204 Police Police Boat 7,921 7,921 $
Sub-total Crime Prevention Fund (204) $ 7,921
205 DPW Stormwater FY25-26 CIP Projects $ 451,194 451,194 $ Sub-total Stormwater Fund (205) $ 451,194
206 DPW Streets/Roads FY25-26 CIP Projects 9,441,339 9,441,339 $ Sub-total Gas Tax Fund (206) $ 9,441,339
207 CED Developers 728,093 728,093 $
Sub-total Development Fund (207) $ 728,093
214 Lib/Rec PW Library-Architech Engineering/Interior Design Svcs 16,739 16,739 $ Sub-total Library Fund (214) $ 16,739
215 Lib/Rec Smart Locker System 32,392 32,392 $
Pickleweed Library Move and Storage Service 7,964 7,964 Sub-total Library Assessment Fund (215) $ 40,356
242 Fire Vegetation Management 1,478,462 1,478,462 $
Sub-total Wildfire Mitigation Fund (242) $ 1,478,462
281 Police SAFE Team 483,282 483,282 $
Sub-total Public Safety Grants Fund (281) $ 483,282
283 City Manager Encampment Resulution Fund 3 1,305,674 1,305,674 $ CED Business and Arts Support 75,548 75,548
Sub-total Grant Fund (283) $ 1,381,222
401 DPW Capital Fund FY 25-26 CIP Projects 105,792 105,792 $ Sub-total Capital Fund Fund (401) $ 105,792
420 DPW Measure E Essential Facilities FY 25-26 CIP Projects 221,160 221,160 $ Sub-total Essential Facilities Fund (420) $ 221,160
430 City Attorney Measure P Legal Services 63,442 63,442 $ Sub-total Measure P Library Fund (430) $ 63,442
611 DPW Building Maintenance 40,760 40,760 $
Sub-total Building Fund (611) $ 40,760
612 Digital System Support Services 708,596 708,596 $
$ 708,596
$ 10,260,245 6,217,552 $ 16,477,797 $
Amount