COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Rebecca Campbell, Director of Finance
DATE: July 1, 2025
SUBJECT: Adoption of a Resolution Approving Amendments to the Fiscal Year 2025-26 Budget
Description:
The City Council will consider approving proposed budget amendments to the Fiscal Year 2025-26 Budget.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
Adopt a Resolution approving amendments to the Fiscal Year 2025 -26 Budget implementing a Fiscal Year 2024-25 third quarter amendment, confirming the amendment for the homeless encampment cleanup project, and providing for an operational need identified after the budget was adopted.
BACKGROUND:
On June 3, 2025, the City Council adopted a Resolution approving third quarter amendments to the Fiscal Year (FY) 2024-25 Budget. On the same night, the City Council adopted a Resolution approving amendments to the previo usly adopted FY 2025 -26 Budget.
One of the third quarter amendments to the FY 2024 -25 Budget was the increased allocation of one full-time Lead Customer Service Technician position in the Water Fund for the Utilities Department’s Water Resources Division. Staff intended to recommend that the City Council amend the FY 2025 -26 Budget to include the increased allocation and appropriations for this position should the third quarter amendments be approved; however, it was inadvertently omitted from staff’s recommendation.
During the discussion of the amendment to the previously adopted FY 2025 -26 Budget on June 3, 2025, staff recommended appropriations increase by $25,000 in the General Fund for the Public Works Department’s Homeless Encampment Cleanup project , also referred to as the Homeless Safety/Quality of Life Project, funded with the release of 2 additional reserves for unfunded liability pension payments. This item confirms the increased appropriation for the project.
After the amended FY 2025-26 budget was adopted, the Police Department identified a need to request additional appropriation to upgrade the current 16’ Ford Van (#356 -08) slated to be replaced in FY 2024-25 to a 24’ Freightliner MT55. The FY 2024 -25 Budget for the Fleet Services Fund includes $140,000 in appropriations to replace the current Ford Van. The upgraded vehicle will provide for an increased cabinet and storage area and accommodate a larger team as the Police Department grows. The difference in cost is estimated at $70,000, which will be paid for with Federal/State Asset Forfeiture funds.
DISCUSSION:
The Resolution (Attachment A) presented for consideration tonight seeks to amend the FY 2025-26 Budget to increase the appropriation for one full-time Lead Customer Service Technician position in the Water Fund for the Utilities Department’s Water Resources Division as well as the increase in appropriation by $25,000 in the General Fund for the Public Works Department’s Homeless Encampment Cleanup project, which were discussed al ong with adoption of amendments to the previously adopted FY 2025 -26 Budget. It also seeks to amend the FY 2025 -26 Budget to accommodate a needed upgrade to a vehicle for the Police Department.
Alternative(s)
The City Council may deny the budget amendment as an alternative to this recommendation. However, doing so will limit the ability to maintain current levels of service and the ability for the Police Department to accommodate growth/expansion afforded by the expanded storage in the upgraded vehicle.
Fiscal Considerations
As reviewed at the June 3, 2025, City Council meeting, the proposed budget amendment will result in the following increase in the financial position by fund:
1. Increase allocation of one Full -Time Lead Customer Service Technician posit ion and appropriations by $115,000 in the Water Fund for the Utilities Department’s Water Resources Division as approved in the FY 2024 -25 Third Quarter report, and
2. Increase appropriations in the General Fund by $25,000 for the Public Works Department’s Homeless Safety/Quality of Life Project, thereby utilizing additional reserves for unfunded liability pension payments.
3. Increase appropriations in the State Asset Forfeiture Fund by $70,000 for the Police Department’s upgrade of the current 16’ Ford Van (#35 6-08) to a 24’ Freightliner MT55.
3 Impact to the Community
The community will benefit from the staffing needed to support essential customer service operations of the Utilities Department, continued clean -up and disposal of materials and refuse from the unhoused community, and fleet for the Police Department.
ATTACHMENT(S)
A. Resolution