City of San Ramon
FINANCE COMMITTEE
AGENDA
Sridhar Verose, Chair • Marisol Rubio, Vice Chair
City Hall - Large Conference Room, Second Floor
7000 Bollinger Canyon Road
Special Meeting
4:30 PM
December 18, 2025
AGENDA QUESTIONS: PLEASE CALL THE FINANCE DIRECTOR AT (925) 973-2576
1. CALL TO ORDER
2. PUBLIC COMMENT
At this time, members of the public are encouraged to address the Committee on any item not already included on the agenda. Comments should not exceed three (3) minutes. No Committee action can be taken at this meeting on issues raised during public comment.
3. APPROVAL OF MINUTES
3.1 Finance Committee Regular Meeting – November 13, 2025
4. NEW BUSINESS
4.1 Request for Amendments to the FY25 Adopted Budget
Staff Report by Jennifer Wakeman, Finance Director
4.2 FY26 Mid-Year Budget Preview
Staff Report by Jennifer Wakeman, Finance Director
5. ADJOURNMENT
The next Finance Committee Meeting is scheduled for January 15, 2026.
I hereby certify the special agenda was posted 24 hours before the noted meeting. This agenda is posted in accordance with Government Code Section 54954.2(a). To make a request for disability-related accommodation to participate in the meeting, please contact the City Clerk’s Office 12 hours in advance of the meeting at 925-973-2539 or [email protected].
Dated: December 15, 2025
2 Finance Committee Meeting – December 18, 2025
ATTENDEE CONDUCT
There will be zero tolerance for any person addressing the Committee making profane, offensive and disruptive remarks, or engaging in loud, boisterous, or other disorderly conduct, that disrupts the orderly conduct of the public meeting. Specifically, it is important for all speakers to adhere to the following guidelines for participation in this meeting:
a. No profanity or obscenity
b. Refrain from personal threats or attacks.
c. Refrain from hateful epithets and demeaning language based on any person’s race, religion, sexual orientation, ethnicity, gender, or disability. d. Respect all people that are present.
At the discretion of the Committee Chair, a speaker may forfeit speaking time for any of the following reasons:
a. Exceeding the allotted time to speak;
b. Yelling, screaming, or other behavior that renders this Committee unable to continue the meeting;
c. Excessive profanity or slander; Specific threats or “fighting words” that incite violence; or
d. Speech that is outside the subject matter jurisdiction of the Committee or the specific agenda item in which you are speaking.
While the City of San Ramon ensures the First Amendment rights of its citizens, we do not accept nor endorse any offensive or hateful comments made during our meetings. The City of San Ramon celebrates the diversity of our community, and we strive to be a welcoming and open community for all.
MINUTES OF THE
CITY OF SAN RAMON FINANCE COMMITTEE
November 13, 2025
1. CALL TO ORDER
Attendee Name Title Status Arrived
Sridhar Verose Chair Present
Marisol Rubio Vice Chair Present
Also in attendance: Scott Koll, Assistant City Manager; Jennifer Wakeman, Finance Director; Brian Bornstein, Public Works Director, Amy Amiri, Senior CIP Analyst; Michelle Joe, Financial Analyst; Shane Hsieh, City District Engineer; Rod Wui, City District Engineer; Jon Bell, Public Services Division Manager; Nicki MacPherson, Accounting Specialist
2. PUBLIC COMMENT
There were no public comments on previous items.
3. APPROVAL OF MINUTES
3.1 Finance Committee - Regular Meeting - Aug 14, 2025 4:30 PM RESULT: ACCEPTED [UNANIMOUS]
AYES: Verose, Rubio
4. UNFINISHED BUSINESS
There was no unfinished business to discuss.
5. NEW BUSINESS
5.1 Capital Improvement Program (CIP) – FY 2024/25 Completed Project Budget Analysis
Staff Report by Amy Amiri, Senior CIP Analyst
RESULT: REPORT RECEIVED
5.2 California Employer's Benefit Trust (CERBT) for the Quarter Ended September 30, 2025
Staff Report by Jennifer Wakeman, Finance Director
RESULT: REPORT RECEIVED
5.3 PARS Pension Stabilization Trust Statements for the Quarter Ended September 30, 2025
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Minutes Acceptance: Minutes of Nov 13, 2025 4:30 PM (APPROVAL OF MINUTES) 2 Finance Committee Meeting – November 13, 2025
Staff Report by Jennifer Wakeman, Finance Director
RESULT: REPORT RECEIVED
5.4 Certificate of Achievement for Excellence in Financial Reporting for Fiscal Year Ended June 30, 2024
Staff Report by Jennifer Wakeman, Finance Director
RESULT: REPORT RECEIVED
5.5 City of San Ramon Quarterly Investment Report for the Period Ending September 30, 2025
Staff Report by Michelle Joe, Financial Analyst
RESULT: REPORT RECEIVED
6. COMMITTEE MEMBER COMMENTS
Committee members had nothing additional to report.
7. ADJOURNMENT
The meeting adjourned at 5:53 PM. The next Finance Committee Meeting is scheduled for December 11, 2025.
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Minutes Acceptance: Minutes of Nov 13, 2025 4:30 PM (APPROVAL OF MINUTES)
FINANCE COMMITTEE STAFF REPORT
DATE: December 18, 2025
TO: Finance Committee/City Manager
FROM: Jennifer Wakeman, Finance Director
By: Jennifer Wakeman, Finance Director
SUBJECT: Request for Amendments to the FY25 Adopted Budget
RECOMMENDED ACTION
Staff recommends that the Finance Committee review the requested amendments to the FY25 Adopted Budget and consider forwarding the request for authorization of the amendments to the City Council for adoption by resolution.
BACKGROUND/DISCUSSION
Each year, the Finance Department undertakes a comprehensive year-end closing process in preparation for the City’s annual independent audit. This year, the process has been more complex due to several factors, primarily related to staffing transitions.
As you are aware, the Finance function has undergone a significant transformation, evolving into a stand-alone department. Over the past year, the department welcomed a new Director, experienced the retirement of the Division Manager, onboarded a new Budget Manager, and has been operating without its Accounting Manager-who possesses the most institutional knowledgesince mid-October due to an extended leave of absence. These changes have impacted the completion of several standard procedures and required staff to dedicate additional time to research, training, and process analysis.
Despite these challenges, staff remain committed to completing all year-end tasks, albeit on a slightly delayed timeline compared to prior years. The team is working closely with the City’s independent auditors to ensure a clean audit and maintain eligibility for the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting.
To support this effort, the City engaged a consultant from MGO, a professional CPA firm with extensive experience in state and local government finance. In collaboration with MGO, staff have identified several opportunities to enhance financial operations, including the development of comprehensive checklists for year-end and other accounting processes, implementation of technical training for finance personnel, and cross-training to build internal capacity.
Additionally, improvements have been identified in budgeting practices for internal service
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funds, City obligations, and joint powers authority (JPA)/custodial activities.
As part of this transition and in response to legacy practices, staff have identified a series of clean-up transfers and budget adjustments that require City Council approval prior to closing Fiscal Year 2024-25 and finalizing the audit. Most of these adjustments address shortfalls in actual revenues or expenditures that occurred without corresponding authorized funding from the General Fund.
Please refer to the following section for a detailed summary of the recommended transfers and the rationale for each, which are necessary to ensure accurate financial reporting and a successful audit outcome for the fiscal year ending June 30, 2025.
1. Fund 601-Investment Fund
Current Use:
This fund has historically been utilized to account for investment management activities.
Recommended Use:
Staff recommends that all investment-related activity be recorded within the General Fund. The current fund classification as an Internal Service Fund (ISF) is not appropriate, as the fund does not provide services on a cost-reimbursement basis, which is a key criterion for ISF designation.
Accounting Status:
As of June 30, 2025, the fund reflects a negative balance of $153,186.57. Actual investment income-consisting of fees/negative interest-totaled $31,718, which fell short of the budgeted projection of $126,443.
Recommended Accounting Adjustment:
Staff recommends closing this fund and consolidating all associated budgeted and actual financial activity into the General Fund to streamline financial reporting and improve transparency.
IMPACT TO THE GENERAL FUND:
Transferring this activity to the General Fund will result in a reduction of $153,186.57 to its available fund balance.
2. Fund 610-Insurance Fund
Current Use:
This fund is currently used to administer the City’s insurance and safety programs, retiree benefit payments for the Dougherty Valley Regional Fire Authority (DRFA), and leave payouts for separating employees. The fund is intended to operate on a cost-reimbursement basis, with annual insurance premiums offset by corresponding departmental reimbursements, resulting in a net-zero fund balance each fiscal year.
Recommended Use:
Staff recommends that, beginning in future fiscal years, DRFA-related activity be transitioned to a dedicated custodial fund. This would allow for clearer financial tracking, with retiree benefit costs funded through a General Fund transfer for San Ramon’s share and reimbursements
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recognized for the City of Dublin’s portion.
Accounting Status:
In FY 2024-25, actual expenditures exceeded the adopted budget by $1,576,824. This variance is primarily due to unbudgeted costs, including:
• Salaries and benefits totaling $878,000
• A $1,079,081 payment to CalPERS for San Ramon’s share of DRFA’s annual required contribution toward unfunded accrued liability (UAL) on pension plans As a result, actual expenses exceeded revenues by $668,181, resulting in a negative fund balance of $586,753.90 as of June 30, 2025.
Recommended Accounting Adjustment:
Staff recommends increasing the FY 2024-25 budgeted expenditures by $1,577,000 to align with actual costs. Additionally, a Transfer In from the General Fund should be authorized to eliminate the negative fund balance and restore the fund to a zero balance.
IMPACT TO THE GENERAL FUND:
The recommended Transfer In of $586,753.90 to the Insurance Fund will reduce the General Fund’s available fund balance by an equivalent amount.
3. Fund 611 - Healthcare Fund
Current Use:
Fund 611 is used to account for healthcare-related activities, including premium payments and claims for active employees, as well as other post-employment benefits (OPEB) such as medical, dental, and vision coverage for retirees. The fund is designed to operate on a cost-reimbursement basis, with departmental contributions offsetting benefit expenses to result in a net-zero balance annually. The City maintains an OPEB Trust (California Employers’ Retiree Benefit Trust, or CERBT), which is typically drawn upon each July to reimburse the prior fiscal year’s retiree benefit expenses. At fiscal year-end, the Healthcare Fund balance should align with the CERBT Trust balance as of June 30.
Recommended Use:
Continue current operations, with ongoing monitoring to ensure timely reimbursements and accurate fund balance alignment with the OPEB Trust.
Accounting Status:
• Retiree OPEB expenses incurred during FY 2024-25 have not yet been reimbursed from the CERBT Trust as of December 2025.
• The fund carries a liability of $4,520,385.23 owed to the General Fund, including $2.2 million carried forward from the prior fiscal year.
• As of June 30, 2025, the fund has a negative balance of $2,757,067.66. • The PARS Pension Stabilization Trust is recorded within this fund and had a FY 2024-25
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year-end balance of $1,881,640.83.
Recommended Accounting Adjustments:
• Reverse the FY 2024-25 budgeted Transfer Out of $1,768,890 to the General Fund, as there is no identified funding source to support this expenditure. A corresponding budget adjustment should be made.
• Establish a restricted fund balance designation for the PARS Pension Stabilization Trust balance of $1,881,640.83 to ensure proper accounting treatment. • Authorize a Transfer In from the General Fund in the amount of $2,757,067.66 to eliminate the negative fund balance and resolve outstanding liabilities.
IMPACT TO THE GENERAL FUND:
The recommended Transfer In of $2,757,067.66 will eliminate the liability owed by the Healthcare Fund and restore its unrestricted fund balance to zero. This action will reduce the General Fund’s available fund balance by the same amount.
4. Fund 618 - Infrastructure Maintenance Fund
Current Use:
This fund serves as a mechanism to support infrastructure maintenance activities. It is primarily funded through Transfers In from the General Fund, with expenditures typically made via Transfers Out to the Capital Projects Fund to support asset maintenance and replacement.
Recommended Use:
To enhance the functionality of this fund as an Internal Service Fund, staff recommends establishing an asset replacement schedule and implementing a formal policy for annual departmental charges. This approach will ensure consistent funding and alignment with best practices for internal service fund management.
Accounting Status:
During FY 2024-25, Transfers Out exceeded Transfers In, resulting in negative cash and a deficit fund balance.
Recommended Accounting Adjustment:
To address the current funding shortfall, staff recommends the following actions:
• Authorize a Transfer In from the General Fund in the amount of $46,233.55 • Reverse the “Due to General Fund” liability by the same amount These adjustments will restore the fund’s financial position and ensure proper accounting treatment.
IMPACT TO THE GENERAL FUND:
The recommended Transfer In will reduce the General Fund’s available fund balance by $46,233.55.
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5. Fund 514 - 2021 Pension Obligation Bonds Fund
Current Use:
This fund is used to account for the sources and uses of the 2021 Taxable Pension Obligation Bonds, which were issued to refinance the City’s unfunded pension liabilities with CalPERS related to employee retirement benefits.
Recommended Use:
Continue current operations, maintaining the fund’s role in tracking bond-related financial activity.
Accounting Status:
In FY 2024-25, the fund’s revenue sources were insufficient to cover the principal and interest payments totaling $2,091,357. Although departmental charges were budgeted at $2,091,457, only $1,234,796 was recorded, resulting in a shortfall and a negative fund balance.
Recommended Accounting Adjustment:
To address the funding gap and restore the fund’s financial position, staff recommends the following actions:
• Ensure that interdepartmental charges are accurately recorded in future fiscal years to align with budgeted amounts
• Authorize a Transfer In from the General Fund in the amount of $845,543.76 to eliminate the current deficit
IMPACT TO THE GENERAL FUND:
The recommended Transfer In will reduce the General Fund’s available fund balance by $845,543.76.
FISCAL ANALYSIS
SUMMARY OF IMPACTS TO THE GENERAL FUND
Fund receiving transfer: Description Amount
Fund 601-Investment Combine with General Fund $153,186.57 Fund 610-Insurance Eliminate negative fund balance 586,753.90 Fund 611-Healthcare Eliminate due to General Fund 2,757,067.66 Fund 618-Infrastructure Eliminate negative fund balance 46,233.55 Fund 514-2021 POB Eliminate negative fund balance 845,543.76 TOTAL $ 4,388,785.44
OVERALL GENERAL FUND IMPACT:
The total impact of the recommended FY 2024-25 budget amendments is a reduction of approximately $4.4 million to the General Fund’s available fund balance. Despite this use of
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funds, the projected General Fund balance as of June 30, 2025 is approximately $29 million, which remains well above the $25.4 million estimated during the development of the FY 2025- 26 budget.
STEPS FOLLOWING APPROVAL
Forward the request for authorization to amend the FY25 Adopted Budget to the City Council for adoption by resolution.
ATTACHMENTS
None
4.1 Packet Pg. 10
FINANCE COMMITTEE STAFF REPORT
DATE: December 18, 2025
TO: Finance Committee/City Manager
FROM: Jennifer Wakeman, Finance Director
By: Jennifer Wakeman, Finance Director
SUBJECT: FY26 Mid-Year Budget Preview
RECOMMENDED ACTION
Staff recommends that the Finance Committee review the summary of mid-year budget requests provided by departments and provide feedback on a mid-year budget adjustment for the City’s Climate Action Plan.
BACKGROUND/DISCUSSION
In accordance with the City’s standard practice, a mid-year review of the FY 2025-26 budget was conducted. As part of this process, departments submitted recommendations for budget adjustments. These modifications are intended to address unanticipated programmatic or personnel changes that have occurred or are expected by June 30, 2026, rather than to introduce new programs or positions.
At its October 28, 2025 meeting, the City Council adopted three fiscal guidelines to support cost containment. These guidelines were communicated to staff during the mid-year budget kickoff meeting:
• No new programs or positions without a tradeoff
• No spending money that we don’t have
• No unsustainable commitments
The first guideline was further clarified to mean that any increase in expenditures or decrease in revenues must be offset by a corresponding adjustment within the same funding source. Most departmental requests included proposed tradeoffs to meet this requirement. In cases where trade-offs were not identified, Finance staff recommended appropriate offsetting accounts to ensure compliance.
As a result, the FY 2025-26 Mid-Year Budget Update reflects a net-zero impact to the General Fund’s fund balance, in alignment with Council’s fiscal guidelines. Additionally, the update includes the use of $387,516 from Other Funds, as detailed in the attached summary of requested departmental transfers.
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Outstanding Item - Climate Action Plan Funding
The only item not yet addressed in the mid-year budget review is the funding for the Climate Action Plan. Staff is seeking guidance from the Finance Committee regarding the appropriate budget amount to include and the identification of a corresponding expenditure offset to ensure compliance with the established fiscal guidelines.
FISCAL IMPLICATIONS
The requested budget changes from departments result in $0 impact to the General Fund and the use of resources from Other Funds in the amount of $387,516. Impacts from inclusion of the Climate Action Plan are undetermined at this time.
STEPS FOLLOWING APPROVAL
Staff will finalize the FY26 mid-year budget report, with the inclusion of the Finance Committee’s recommendations regarding funding for the Climate Action Plan, for adoption by resolution at the City Council meeting on January 13, 2026.
ATTACHMENT(S)
A: Draft Summary of FY2025-26 Mid-Year Budget Requests by Departments
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Draft FY 2025-26 Mid Year Budget Requests by Department Department Description GF DV Other funds Total
Police - Expenditures
Animal control FY25-26 reduction - per CCC: Will be used for CIP 400013 Data consolidation and Inter-Agency
Collaboration software (7,623) (4,477) 12,100 -
Transfers: Positive=Out, Negative=In 7,623 4,477 (12,100) -
TOTAL Police Impact to Fund Balance - - - -
Human Resources - Expenditures
Recruitment administration - due to change in the
background check process (20,000) (20,000)
Meeting supplies (10,000) (10,000)
Temporary staffing 20,000 20,000
Benefits administration 10,000 10,000
Fund 610, Insurance:
Liability premium reduction (205,000) (205,000)
Salary and wages: department restructuring 55,000 55,000 Professional services 150,000 150,000
TOTAL Human Resources Impact to Fund Balance - - - -
Parks & Community Svc - Revenue Sports camps and classes: reduced participation (95,098) (95,098) Tennis Classes - miscalulated number of sessions (101,100) (101,100) Music progams 26,705 26,705
Community programms: Dive-in movie participation 772 772 TOTAL Revenue: Increase/(Reduction) (168,721) (168,721) Parks & Community Svc - Expenditures
Medical In -lieu (MIL): Not budgeted based on historical trends - Fo FY, Based on actuals 31,800 31,800
Health benefits reduction - due to shift to MIL (133,294) (133,294) Field Use Study: Consulting costs 40,000 40,000
Aquatic part-time staff 14,373 14,373
Community band 1,400 1,400
Reduce: 61001 - Prof Services (30,500) (30,500)
Reduce: 61005 - Consulting Service (7,000) (7,000)
Reduce: 61006 - Computer software maintenance (7,500) (7,500) Reduce: 61201 - Rents and Leases (20,500) (20,500)
Reduce: 61301 - Utilities/Phone (6,500) (6,500)
Reduce: 62016 - Rec Equipment and supplies (46,500) (46,500) Reduce: 62018 - Uniforms (4,500) (4,500)
TOTAL Expenditures Increase/(Reduction) (168,721) (168,721) TOTAL Parks & Community Svc Impact to Fund Balance - - - - Public Works - Expenditures
Professional services: Plan review needed due to Sr.
Engineer's leave without pay 75,000 75,000
Paid fromsalay savings from currently vacant positons.
No budget adjustment will be entered (75,000) (75,000)
Professional services: Plan review needed due to Sr.
Traffic Engineer's leave without pay 20,000 20,000
Paid fromsalay savings from currently vacant positons.
No budget adjustment will be entered (20,000) (20,000)
ADA transportation plan update: to satisfy federal
requirements. Possibly covered from Planning cost
recovery, fund 201 50,000 50,000
Reduction of transfer out to DV (10100000-69012), Salary savings in DV fund due to Vacancies/LWOP (50,000) (50,000) Position reclassification, as follows -
FROM: 341 TO: 401 (1,183) (1,183)
FROM: 342 TO: 401 (3,551) (3,551)
FROM: 361 TO: 401 (26,640) (26,640)
FROM: 362 TO: 401 (5,919) (5,919)
TO: 401 FROM: 342, 361& 362 37,294 37,294
Fund 202, GIS: ESRI software cost increase 2,975 2,975
Fund 302, Citywide Street Lighting.
Citywide street light pole repairs due to vehicle accidents, often reimbursed by insurance. The projected reserve
balance on June 30 is approximately $478,991. 30,540 30,540 Water average rate increase from FY25 to FY26 was 10%,
due to overall usage and rate increases. -
Fund 301, Citywide landscaping 12,000 12,000
Fund 303, Canyon lakes 63,000 63,000
Fund 305, Summerwood loop 6,000 6,000
Fund 310, Old Ranch Estates 4,000 4,000
Fund 312, El Nido 3,000 3,000
Fund 319, Glasss House 1,000 1,000
Fund 330, The preserve 40,000 40,000
Fund 344, Wastewater:
Increased usage of consulting services due to new
Franchise Fee Study & Non-Exclusive Franchise Hauler
(Construction & Debris) program review.The projected
reserve balance on June 30 is approximately $622,461. 25,000 25,000 Fund 344, Wastewater:
New rate as a result of recent Request for Proposal &
increased usage.The projected reserve balance on June 30 is approximately $622,461. 135,000 135,000
Fund 346, Streetsmart: Part-time employee funding 15,000 15,000 Fund 361, DVGHAD:
Professional services: Plan review needed due to Sr.
Engineer's leave of absence. 50,000 50,000
TOTAL Public Works Impact to Fund Balance - - (387,516) (387,516) Grand Total Impact to Fund Balances - - (387,516) (387,516)
4.2.a
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Attachment: A: Draft Summary of FY2025-26 Mid-Year Budget Requests by Departments (4866 : FY26 Mid-Year Budget Preview)