Agenda-Item-Number-14-2.3.26_Mid-Year-BA-Staff-Report_FINAL — Sebastopol City Council, February 3, 2026

CITY OF SEBASTOPOL CITY COUNCIL
AGENDA ITEM REPORT FOR MEETING OF: February 3, 2026
=========================================================================================== To: Honorable Mayor and City Councilmembers
From: Budget Committee Members
Vice Mayor Maurer
Councilmember Carter
Interim City Manager Mary Gourley
Ana Kwong – Administrative Services Director
Responsible Department: Administrative Services
Subject: Discuss and Consideration of Adoption of Resolution Approving the Mid-Year Budget Adjustments to the City of Sebastopol Budget for FY2025-26 =========================================================================================== RECOMMENDATIONS:

The item is recommending the City Council approve Adoption of Resolution Approving the Mid-Year Budget Adjustments to the City of Sebastopol Budget for FY2025-26.

PROCESS OF AGENDA ITEM:

1. Presentation of agenda item by the Requestor or Responsible Department

2. Questions and discussion from Councilmembers

3. Public comment period

4. Council deliberation and motion
EXECUTIVE SUMMARY:

The City of Sebastopol’s mid-year budget review provides an update on key financial factors affecting the FY 2025– 26 budget. This process, conducted after the second fiscal quarter, allows departments to present revised revenue and expenditure projections, ensuring greater budget transparency and accuracy. The recommends adjustments that will increase the planned General Fund reserve contribution by $466,500. These changes reflect temporary (one time) cost savings, particularly in administration, planning and building, and more realistic revenue expectations. The proposed adjustments will raise the City’s reserve level to 29.3%, exceeding policy minimums and supporting fiscal stability.

BACKGROUND:

The City Council adopted the FY 2025-26 budget on July 1, 2025. That budgetwas presented with a planned surplus to reserves of $3,945. As part of transparency and best practices, the Council conducts a mid year budget review to consider any mid year budget amendments needed. The mid-year budget amendment process occurs annually after the end of the second quarter of the fiscal year. The mid-year budget process provides an opportunity for the Administrative Services Department to provide an update to the City Council on the major financial factors affecting the City’s current fiscal year budget. The mid-year budget review is not intended to be a full discussion of the budget, but is an opportunity for City Council to:

1. Ask specific questions to each Department

2. Review the General Fund and other funds;

3. Make adjustmentsto achieve a more accurate budget for the current fiscal year (resulting in greater budget transparency); and

4. Help shape the development of next year’s budget.

Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

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DISCUSSION:

The Budget Committee held publicly noticed meetingswith a majority of department headsin attendance to review and revise mid-year revenue projections and expenditures estimates for the General Fund, Special Revenue Fund, Water and Sewer Enterprise Funds, and other significant revenue categories.

This adjustment results in a new surplus of $466,500 higher than the originally adopted budget surplus of $3,945.

The Budget Committee acknowledges the ongoing efforts of City department heads, who remain committed to monitoring appropriations and achieving further savings wherever possible. The Committee is pleased to report that this proposed adjusted budget meets and exceeds the Council’s reserve policy minimum of 15%, with a goal of 20%. The original FY 2025–26 adopted budget projected a reserve level of 25.5%; this proposed adjustment increases that projection to 29.3%.

While changesin anticipated revenues do not require formal City Council action, they are presented here to provide a clear picture of updated financial expectations and a more accurate benchmark for measuring end-of-year results.

Revenue increases are also recommended for recording to ensure transparency and maintain the City’s commitment to not increasing net General Fund costs. Total expenditure appropriations can only be increased by formal action of the City Council.

STAFF ANALYSIS
General Fund Revenues:

The mid-year revenue projection reflects an overall increase of $10,635, driven by various minor adjustments based on actual collections. One area of uncertainty remains building permit fees. Through the firstsix months, collections total $321,000; however, most building activity typically occurs in the spring. With several housing projects in the pipeline, there is still a reasonable expectation that the $1,100,000 budget target can be met by June.

Sales tax revenue is also showing a slight decline. This adjustment reflects the latest data from the City’s sales tax consultant, based on spending through the third quarter of September 2025. As you are aware, market conditions remain volatile, and the full impact of tariffs is still uncertain.

On a positive note, property tax revenue is projected to increase by $95,000, which is a routine adjustment based on the December’s property tax distribution. Minor adjustments to franchise fees, charges for services, and miscellaneous revenue reflect current collection trends and are based on actual year-to-date collections and projections through the end of the fiscal year.

The summary table below reflects the results of the analysis and the recommended adjustments to the revenue accounts. A detailed breakdown of each revenue line item is provided as an attachment for further reference.

Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

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Description
2024-25
Actual
2025-26
Adopted
Budget
2025-26
Proposed
Budget
Adjustment
$ Inc/(Dec)
Adjusted vs.

Adopted
Budget
% Inc/(Dec)
Adjusted vs.

Adopted
Budget

General Fund Expenditures:

Budgets for City administration—including City Council, City Manager, City Attorney, and Assistant City Manager/City Clerk—show notable changes this fiscal year. • City Council Budget: Reduced by $17,000, primarily from lower contracted audio/visualservice costs driven by shorter meeting durations, along with lower shuttle fare expenses. • City Manager’s Budget: Decreased by $289,000 due to vacancy and salary savings • Assistant City Manager / City Clerk Budget: Shows an increase in salary costs due to the removal of the citywide vacancy-savings adjustment applied in the last budget cycle. As there is only one employee in this department there is no vacant position; therefore this has been removed. Eliminating this adjustment aligns the budget with current staffing levels.

The Administrative Services budget also saw a modest decrease across several accounts, reflecting more accurate estimates based on actual spending patterns.

In the Planning and Building departments, budgets have been reduced as well, mainly due to salary savings from multiple vacancies within the planning team and the absence of an administrative technician during the first half of the fiscal year in the building department. It’simportant to note that these salary savings are a one-time occurrence and should not be considered ongoing reductions.

The Ives Pool budget reduction reflects a decrease in projected electricity costs for PG&E. This reduction directly impacts the general fund by lowering the amount reimbursed as miscellaneous income.

Overall, these adjustments reflect a combination of temporary cost management factors, resulting in a more efficient allocation of resources for only this current fiscal period.

The table below reflects the results of the analysis and recommended adjustments to expenditures accounts:

Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

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Description
2024-25
Actual
2025-26
Adopted
Budget
2025-26
Proposed
Budget
Adjustment
$ Inc/(Dec)
Adjusted vs.

Adopted
Budget
% Inc/(Dec)
Adjusted vs.

Adopted
Budget
OPERATING EXPENDITURE - By Department
City Council 176,804 183,214 165,952 (17,262) -9.4%
City Manager 827,312 581,282 292,508 (288,774) -49.7%
City Attorney 646,785 643,750 643,750 - 0.0%
Assistant City Manager | City Clerk 457,159 470,818 478,180 7,362 1.6% Administrative Services (Finance) 1,385,796 1,466,539 1,452,124 (14,415) -1.0% Planning 657,815 701,666 652,812 (48,854) -7.0%
Building 303,081 437,909 354,908 (83,001) -19.0%
Fire & Prevention 1,492,276 1,247,640 1,247,640 - 0.0%
Police 5,123,538 5,767,329 5,767,329 - 0.0%
Public Works 2,298,834 2,650,318 2,650,318 - 0.0%
Senior Center 42,620 47,650 47,650 - 0.0%
PW-Community Center 172,309 164,202 164,202 - 0.0%
PW-Ives Pool 212,031 225,761 218,781 (6,980) -3.1%
Non Departmental 97,126 146,940 146,940 - 0.0%
Debt Service Payments 269,979 150,755 150,755 - 0.0%
Transfers Out 300,000 800,000 800,000 - 0.0%
TOTAL EXPENDITURES 14,463,465 15,685,773 15,233,849 (451,924) -2.9% 5-Years Financial Forecast:

This packet includes two scenarios for the five-year financial forecast: one excluding the a hotel and another assuming the a hotel becomes operational in FY28-29. Please note that the forecast does not incorporate potential outcomes from ongoing labor negotiations with bargaining groups.

This snapshot reflects the most current information available. As we begin the FY26-27 budget preparation process and receive updated data, these projections will be revised accordingly. All figures are subject to change as new information emerges.

Special Revenue Fund:

Fund 220 – Fire Impact Fee
Per the agreement with Gold Ridge Fire District, the City is required to transfer any fire impact fee fund balance to the District at the start of each fiscal year. When the FY25-26 budget was developed, this agreement had not yet been finalized, so no budget was allocated for the fire impact fee payment to GRFD. This adjustment is a formality to honor the agreement. Future budgets will include an estimate for this annual pass-through payment to GRFD.

Enterprise Fund:

Water Fund:

Minor adjustments to the Water Fund resulted in an overall $10,040 surplus. Each account was reviewed, and adjustments were applied where appropriate. Salaries increased by $14,245 due to the removal of vacancy savings originally applied during budget development. Previously, vacancy savings were applied uniformly across all positions, regardless of whether a vacancy existed. As staff is going through this mid-year budget review process, leaving these savingsin place no longer reflected actual expenses,so theywere removed. Thisincrease was partially offset by reductions in some benefits’ accounts, contracted services, as several expenses came in lower than budgeted.

Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

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Wastewater Fund:

Minor adjustments to the Wastewater Fund resulted in an overall $6,400 surplus. Each account was reviewed, and adjustments were applied where appropriate. Salaries increased by $12,000 due to the removal of vacancy savings originally applied during budget development. Previously, vacancy savings were applied uniformly across all positions, regardless of whether a vacancy existed. As staff is going through this mid-year budget review process, leaving these savingsin place no longer reflected actual expenses,so theywere removed. Thisincrease was partially offset by reductions in some benefits’ accounts, services and supplies, as several expenses came in lower than budgeted.

BUDGET COMMITTEE REVIEW:

The Budget Committee reviewed the mid-year budget amendment at its scheduled January 12, 2026 meeting.

CITY COUNCIL GOALS/PRIORITIES/AND OR GENERAL PLAN CONSISTENCY:

Goal 5 – Long Term Financial Sustainability
Achieving Greater Fiscal Resilience and Long Term Fiscal Sustainability

COMMUNITY OUTREACH:

This item has been noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to schedule meeting date.

FISCAL IMPACT:

The fiscal impact as stated above for various revenue and expenses accounts by departments. The mid-year adjustments improve the General Fund position by $466,500, increasing the originally budgeted surplus from $3,945 to a significantly higher level due to onetime salary savings from vacancies. Revenues increase by $10,635, and expenditure adjustments across departments produce reduction in expenditures reductions. The Water Fund gains a $10,040 surplus, and the Wastewater Fund gains a $6,400 surplus. Overall, the City’s fiscal position remain stable but cautious.

OPTIONS:

Here are some options for the City Council to consider:

1. Adopt the Mid-Year Budget Adjustments as recommended.

2. Take no action and retain the originally adopted budget without changes.

ATTACHMENTS:

General Fund Summary Page Budget
General Fund Detailed Revenue Page
General Fund Budget Adjustment Expense Forms by Department Fire Impact Fee Fund
Water Summary & Detailed Pages Budget
Wastewater Summary & Detailed Pages Budget
Resolution
APPROVALS:

Department Head Approval: Approval Date:_1/5/26______
CEQA Determination (Planning): Approval Date:_N/A______ The proposed action is not a project under the California Environmental Quality Act (CEQA) Administrative Services (Financial) Approval Date:_1/5/26______ Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

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Costs authorized in City Approved Budget: ☐ Yes ☐ No  N/A Account Code (f applicable) ___________________________ City Attorney Approval: Approval Date: __1/21/26_______ City Manager Approval: Approval Date: __1/21/26________ Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

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Description
2024-25
Actual
2025-26
Adopted
Budget
2025-26
Proposed
Budget
Adjustment
$ Inc/(Dec)
Adjusted vs.

Adopted
Budget
% Inc/(Dec)
Adjusted vs.

Adopted
Budget

OPERATING REVENUE
Property Tax 3,642,556 3,639,105 3,734,475 95,370 2.6%
Real Property Transfer Tax 62,203 50,000 50,000 - 0.0%
Sales Taxes 5,015,507 6,130,700 6,067,200 (63,500) -1.0% User Taxes 925,705 962,050 962,050 - 0.0%
Transient Occupancy Tax 480,263 534,500 534,500 - 0.0%
Franchise Fees 490,118 530,000 522,000 (8,000) -1.5%
Licenses & Permits 676,253 1,244,000 1,244,000 - 0.0%
Fines & Special Assessments 70,935 77,300 77,300 - 0.0% Intergovernmental Revenues 27,724 20,200 20,200 - 0.0%
Interest & Rents 166,399 157,450 157,450 - 0.0%
Charges for Services 182,375 162,300 153,065 (9,235) -5.7% Miscellaneous Revenue 393,335 110,790 106,790 (4,000) -3.6% Cost Allocation Plan 1,761,797 1,796,323 1,796,323 - 0.0% Transfers In 209,622 275,000 275,000 - 0.0%
TOTAL REVENUES 14,104,792 15,689,718 15,700,353 10,635 0.1% OPERATING EXPENDITURE - By Department
City Council 176,804 183,214 165,952 (17,262) -9.4%
City Manager 827,312 581,282 292,508 (288,774) -49.7%
City Attorney 646,785 643,750 643,750 - 0.0%
Assistant City Manager | City Clerk 457,159 470,818 478,180 7,362 1.6% Administrative Services (Finance) 1,385,796 1,466,539 1,452,124 (14,415) -1.0% Planning 657,815 701,666 652,812 (48,854) -7.0%
Building 303,081 437,909 354,908 (83,001) -19.0%
Fire & Prevention 1,492,276 1,247,640 1,247,640 - 0.0%
Police 5,123,538 5,767,329 5,767,329 - 0.0%
Public Works 2,298,834 2,650,318 2,650,318 - 0.0%
Senior Center 42,620 47,650 47,650 - 0.0%
PW-Community Center 172,309 164,202 164,202 - 0.0%
PW-Ives Pool 212,031 225,761 218,781 (6,980) -3.1%
Non Departmental 97,126 146,940 146,940 - 0.0%
Debt Service Payments 269,979 150,755 150,755 - 0.0%
Transfers Out 300,000 800,000 800,000 - 0.0%
TOTAL EXPENDITURES 14,463,465 15,685,773 15,233,849 (451,924) -2.9% Net General Fund Surplus/(Deficit) (358,673) 3,945 466,504

GENERAL FUND
FY 25-26 MID YEAR BUDGET ADJUSTMENT
Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

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Revenue Categories
2024-25
Actual
2025-26
Adopted
Budget
2025-26
Estimated
Year-End
% Inc/(Dec)
Estimated vs.

Adopted
Budget
% Inc/(Dec)
Adjusted vs.

Adopted
Budget
3000 - Property Tax Secured / Unsecured 2,650,054 2,626,755 2,679,290 52,535 2.0% 3002 - Real Property Transfer Tax 62,203 50,000 50,000 -0 0.0% 3004 - Property Tax in Lieu of VLF 992,502 1,012,350 1,055,185 42,835 4.2% Property Tax 3,704,759 3,689,105 3,784,475 95,370 2.6%
3010 - Sales Tax-Bradley Burn 2,248,299 2,212,000 2,188,000 -24,000 -1.1% 3011 - Sales Tax-1/4 cent (T) 763,260 772,000 755,000 -17,000 -2.2% 3012 - Sales Tax-1/2 cent (Q) 1,529,446 1,544,000 1,510,000 -34,000 -2.2% 3018 - Sales Tax-1/2 cent (U) 370,737 1,500,000 1,510,000 10,000 0.7% 3014 - Sales Tax-Prop 172 103,766 102,700 104,200 1,500 1.5% Sales Taxes 5,015,507 6,130,700 6,067,200 -63,500 -1.0% 3020 - Transient Occupancy Tax 480,263 534,500 534,500 -0 0.0% -0 0.0%
3050 - Garbage Franchise 302,261 330,000 330,000 -0 0.0% 3051 - PG&E Franchise 121,902 125,000 125,000 -0 0.0%
3052 - Cable TV Franchise 65,955 75,000 67,000 -8,000 -10.7% Franchise Fees 490,118 530,000 522,000 -8,000 -1.5%
3055 - Vehicle in lieu Tax 11,862 12,500 12,500 -0 0.0% 3056 - UUT PG&E 488,518 494,100 494,100 -0 0.0%
3057 - UUT Sonoma Clean Power 122,164 129,150 129,150 -0 0.0% 3058 - UUT Garbage 98,326 108,200 108,200 -0 0.0%
3059 - UUT Cable 71,201 77,000 77,000 -0 0.0%
3060 - UUT Misc 132,562 140,600 140,600 -0 0.0%
3061 - UUT (AB-1717) 1,072 500 500 -0 0.0%
User Taxes 925,705 962,050 962,050 -0 0.0%
3101 - Business License 139,028 140,000 140,000 -0 0.0% 3102 - Business License-Late Fees 4,399 4,000 4,000 -0 0.0% 3103 - Building Permits 532,826 1,100,000 1,100,000 -0 0.0% Licenses & Permits 676,253 1,244,000 1,244,000 -0 0.0%
3105 - Vehicle/ Criminal Code Fines 14,643 12,500 12,500 -0 0.0% 3106 - Parking Fines 14,278 18,000 18,000 -0 0.0%
3107 - RBS Training Fees 14,200 14,800 14,800 -0 0.0%
3110 - Business License - DSA 70% $1 5,213 5,500 5,500 -0 0.0% 3202 - State Mandated Cost Reimb 22,602 26,500 26,500 -0 0.0% Fines & Special Assessments 70,935 77,300 77,300 -0 0.0%

GENERAL FUND REVENUES DETAILED
FY 25-26 MIDYEAR BUDGET ADJUSTMENT
Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

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Revenue Categories
2024-25
Actual
2025-26
Adopted
Budget
2025-26
Estimated
Year-End
% Inc/(Dec)
Estimated vs.

Adopted
Budget
% Inc/(Dec)
Adjusted vs.

Adopted
Budget

GENERAL FUND REVENUES DETAILED
FY 25-26 MIDYEAR BUDGET ADJUSTMENT
3203 - POST Reimb 32 -0 -0 -0 0.0%
3204 - Casino Mitigation 20,192 20,200 20,200 -0 0.0%
3206 - County Grant 7,500 -0 -0 -0 0.0%
3207 - State Grant -0 -0 -0 -0 0.0%
3209 - Federal Grant -0 -0 -0 -0 0.0%
Intergovernmental Revenues 27,724 20,200 20,200 -0 0.0% 3300 - Interest Income 118,282 100,000 100,000 -0 0.0%
3308 - Interest Income- FMV -18,421 -0 -0 -0 0.0%
3301 - Cell Tower Lease Rental 37,540 44,300 44,300 -0 0.0% 3302 - City Property Rental - Little League 4,396 3,150 3,150 -0 0.0% 3304 - City Property Rental - Parking Space 430 500 500 -0 0.0% 3305 - City Property Rental - Palm Ave 3,500 2,500 2,500 -0 0.0% 3390 - Lease Interest Income 9,422 -0 -0 -0 0.0%
3401 - Plaza and Special Event Fees 11,250 7,000 7,000 -0 0.0% Interest & Rents 166,399 157,450 157,450 -0 0.0%
3404 - Credit Card Transaction Fee 1,934 2,000 2,000 -0 0.0% 3405 - Finance Fee 6,486 7,000 7,000 -0 0.0%
3425 - Fire Dept Fees 68,125 40,000 40,000 -0 0.0%
3426 - Planning Fees 35,721 38,000 38,000 -0 0.0%
3441 - Encroachment Permits Fee 26,540 30,000 24,000 -6,000 -20.0% 3442 - Grading Permit Fee 1,130 2,000 1,200 -800 -40.0% 3445 - Public Works Services 2,053 7,500 2,000 -5,500 -73.3% 3502 - Police Services 25,494 18,000 25,500 7,500 41.7% 3504 - Impounded Vehicle Release Fee 2,003 1,800 1,800 -0 0.0% 3505 - Police Reports Copy Fee 1,545 2,000 2,000 -0 0.0% 3506 - Police False Alarms Fee 60 -0 -0 -0 0.0%
3507 - Police OT Reimbursement 2,964 6,000 1,565 -4,435 -73.9% 3615 - Solar Payback 8,320 8,000 8,000 -0 0.0%
Charges for Services 182,375 162,300 153,065 -9,235 -5.7% 3801 - Sales of Surplus Equipment 870 -0 -0 -0 0.0%
3804 - Insurance Claims 39,973 500 500 -0 0.0%
3805 - Miscellaneous Income 830 500 3,000 2,500 500.0%
3806 - Donations & Contributions 253,000 500 2,000 1,500 300.0% 3807 - Rebates 17,332 15,300 15,300 -0 0.0%
3810 - Pool Expense Reimbursement 81,331 93,990 85,990 -8,000 -8.5% Miscellaneous Revenue 393,335 110,790 106,790 -4,000 -3.6% 3998 - Cost Allocation Plan 1,761,797 1,796,323 1,796,323 -0 0.0% 3999 - Transfers In 209,622 275,000 275,000 -0 0.0%
Total Revenue 14,104,792 15,689,718 15,700,353 10,635 0.1% Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

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Department
Phone No
Item Dept/Division Name Fund
Number
Department
Number
Object
Code
Action to be
Taken
Adopted
Budget
Change
+/-
Revised
Budget
1 City Council - Benefits 100 10 41xx Decrease 31,884 (1,479) 30,405 2 City Council - Contracted Svs 100 10 4210 Decrease 54,400 (10,100) 44,300 3 City Council - Misc Svs/Supplies 100 10 43xx Increase 12,280 466 12,746 4 City Council - Community Suppt 100 10 4890 Decrease 14,400 (6,150) 8,250 -
-
-
-
-
-
-
-
-
112,964 (17,263) 95,701
Date
Date
2) A $10,100 decrease in contracted services for audio and video support due to shorter meeting durations.  Use the Line Item table below to review budget items.

Submit this form directly to the Administrative Services Department.

Contact Person: N/A
TOTAL
1) A decrease of $1,479 in overall benefits based on actual costs.

Comments/Justification:

Budget Amendment
General Information
Instructions:
 Use this form to create or adjust the adopted budget between line items expense  Attach justification and documentation requiring change to the adopted budget.  If the amendment involves changes to salary/benefit, funding a new position, or revising a job classification, it follows a different process that requires a meeting with the Interim City Manager Budget Amendment Form
City Council
N/A
4) A $6,150 decrease due to shuttle fare costs coming in lower than estimated.

Attach justification memo for budget change if need more space.

Approvals
Department Head Signature
City Manager Signature
3) An overall net increase of $466 in services and supplies, reflecting a decrease in office supplies and an increase in dues and subscriptions.

For Administrative Services use only
Data Entry_______
Date__/__/__
Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

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Department
Phone No
Item Dept/Division Name Fund
Number
Department
Number
Object
Code
Action to be
Taken
Adopted
Budget
Change
+/-
Revised
Budget
1 City Manager - Salary 100 11 40xx Decrease 240,630 (189,830) 50,800 2 City Manager - Benefits 100 11 41xx Decrease 147,952 (76,971) 70,981 3 City Manager - Contracted Svs 100 11 4210 Increase 110,500 (14,250) 96,250 4 City Manager - Svs & Supplies 100 11 43xx Decrease 25,095 (2,542) 22,553 5 City Manager - Conf/Training 100 11 45xx Decrease 4,700 (4,310) 390 6 City Manager - Telecommunication 100 11 4750 Decrease 3,420 (870) 2,550 -
-
-
-
-
-
-
532,297 (288,773) 243,524
Date
City Manager Signature Date
4) A decrease of $2,542 because certain dues and subscriptions will not be paid this year due to the vacancy. 5) A decrease of $4,310 because no conference or training expenses will be incurred. 6) A decrease of $870 because the cell phone service was cancelled due to the vacancy.

Attach justification memo for budget change if need more space.

Approvals
Department Head Signature
3) A decrease in contracted services because financial forecast support was provided only on an as‑needed basis.  Use the Line Item table below to review budget items.

Submit this form directly to the Administrative Services Department.

General Information
City Manager
Contact Person: N/A N/A
Budget Amendment
TOTAL
Comments/Justification:
1) A decrease of $189,830 due to the position remaining vacant 2) A decrease of $76,971 due to the position remaining vacant a different process that requires a meeting with the Interim City Manager Budget Amendment Form
Instructions:
 Use this form to create or adjust the adopted budget between line items expense  Attach justification and documentation requiring change to the adopted budget.  If the amendment involves changes to salary/benefit, funding a new position, or revising a job classification, it follows For Administrative Services use only
Data Entry_______
Date__/__/__
Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

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Department
Phone No
Item Dept/Division Name Fund
Number
Department
Number
Object
Code
Action to be
Taken
Adopted
Budget
Change
+/-
Revised
Budget
1 ACM/City Clerk - Salary 100 13 40xx Increase 264,587 10,663 275,250 2 ACM/City Clerk - Benefits 100 13 41xx Decrease 125,077 (886) 124,191 3 ACM/City Clerk - Contracted Svs 100 13 4210 Increase 5,125 (1,975) 3,150 4 ACM/City Clerk - Svs/Sup/Telcomm 100 13 43xx Decrease 11,360 (441) 10,919 -
-
-
-
-
-
-
-
-
406,149 7,361 413,510
Date
City Manager Signature Date
Attach justification memo for budget change if need more space.

Approvals
Department Head Signature
3) & 4) Reductions in contracted services, supplies, and telecommunications reflect updated spending patterns based on current usage  Use the Line Item table below to review budget items.

Submit this form directly to the Administrative Services Department.

General Information
ACM | City Clerk
Contact Person: N/A N/A
Budget Amendment
TOTAL
Comments/Justification:
1) The increase in salary reflects the removal of the vacancy‑savings adjustment that was applied citywide during the last budget development, regardless of whether a department had vacant positions. Eliminating this adjustment brings the budget in line with current staffing conditions 2) A decrease of $886 in overall benefits based on actual costs. a different process that requires a meeting with the Interim City Manager Budget Amendment Form
Instructions:
 Use this form to create or adjust the adopted budget between line items expense  Attach justification and documentation requiring change to the adopted budget.  If the amendment involves changes to salary/benefit, funding a new position, or revising a job classification, it follows For Administrative Services use only
Data Entry_______
Date__/__/__
Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

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Department
Phone No
Item Dept/Division Name Fund
Number
Department
Number
Object
Code
Action to be
Taken
Adopted
Budget
Change
+/-
Revised
Budget
1 Admin Svs - Salary 100 14 40xx Decrease 507,017 (15,137) 491,880 2 Admin Svs - Benefits 100 14 41xx Decrease 352,048 (51,859) 300,189 3 Admin Svs - Contracted Svs 100 14 42xx Increase 428,984 52,536 481,520 4 Admin Svs - Svs/Sup/Telcomm 100 14 43xx Increase 40,275 45 40,320 -
-
-
-
-
-
-
-
-
1,328,324 (14,415) 1,313,909
Date
Date
a different process that requires a meeting with the Interim City Manager Budget Amendment Form
Instructions:
 Use this form to create or adjust the adopted budget between line items expense  Attach justification and documentation requiring change to the adopted budget.  If the amendment involves changes to salary/benefit, funding a new position, or revising a job classification, it follows 4) Overall increases in services & supplies, and telecommunications reflect updated spending patterns based on current usage  Use the Line Item table below to review budget items.

Submit this form directly to the Administrative Services Department.

General Information
Admin Svs (Finance)
Contact Person: N/A N/A
Budget Amendment
TOTAL
Comments/Justification:
1) & 2) The decrease in salary and benefits is due to a vacant position. 3) The increase in contracted services reflects temporary coverage costs incurred during the three‑month period when one position was vacant.

City Manager Signature
Attach justification memo for budget change if need more space.

Approvals
Department Head Signature
For Administrative Services use only
Data Entry_______
Date__/__/__
Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

Page 13 of 31 ends

Department
Phone No
Item Dept/Division Name Fund
Number
Department
Number
Object
Code
Action to be
Taken
Adopted
Budget
Change
+/-
Revised
Budget
1 Planning - Salary 100 21 40xx Decrease 302,763 (136,559) 166,204 2 Planning - Benefits 100 21 41xx Decrease 247,108 (112,545) 134,563 3 Planning- Contracted Svs 100 21 4210 Increase 43,280 200,250 243,530 -
-
-
-
-
-
-
-
-
-
593,151 (48,854) 544,297
Date
Date
a different process that requires a meeting with the Interim City Manager Budget Amendment Form
Instructions:
 Use this form to create or adjust the adopted budget between line items expense  Attach justification and documentation requiring change to the adopted budget.  If the amendment involves changes to salary/benefit, funding a new position, or revising a job classification, it follows  Use the Line Item table below to review budget items.

Submit this form directly to the Administrative Services Department.

General Information
Planning
Contact Person: N/A N/A
Budget Amendment
TOTAL
Comments/Justification:
1) & 2) The decrease in salary and benefits is due to a vacant positions. 3) The increase in contracted services reflects temporary coverage costs incurred for the duration of these vacant positions City Manager Signature
Attach justification memo for budget change if need more space.

Approvals
Department Head Signature
For Administrative Services use only
Data Entry_______
Date__/__/__
Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

Page 14 of 31 ends

Department
Phone No
Item Dept/Division Name Fund
Number
Department
Number
Object
Code
Action to be
Taken
Adopted
Budget
Change
+/-
Revised
Budget
1 Building - Salary 100 22 40xx Decrease 85,076 (44,476) 40,600 2 Building - Benefits 100 22 41xx Decrease 64,337 (45,269) 19,068 3 Building- Recruitment 100 22 4230 Increase 257,400 6,500 263,900 4 Building- Services & Supplies 100 22 43xx Decrease 4,850 (1,755) 3,095 5 Building- Telecommunications 100 22 4750 Increase - 2,000 2,000 -
-
-
-
-
-
-
-
411,663 (83,000) 328,663
Date
Date
a different process that requires a meeting with the Interim City Manager Budget Amendment Form
Instructions:
 Use this form to create or adjust the adopted budget between line items expense  Attach justification and documentation requiring change to the adopted budget.  If the amendment involves changes to salary/benefit, funding a new position, or revising a job classification, it follows 4) A decrease in services and supplies reflect actual spending pattern  Use the Line Item table below to review budget items.

Submit this form directly to the Administrative Services Department.

General Information
Building
Contact Person: N/A N/A
Budget Amendment
TOTAL
Comments/Justification:
1) & 2) The decrease in salary and benefits is due to a vacant positions. 3) The increase in recruitment cost reflects actual cost for recruitment to fill vacant position as it was not previously budgeted City Manager Signature
5) The increase in telecommunication due to shared services that was not previously budgeted Attach justification memo for budget change if need more space.

Approvals
Department Head Signature
For Administrative Services use only
Data Entry_______
Date__/__/__
Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

Page 15 of 31 ends

Department
Phone No
Item Dept/Division Name Fund
Number
Department
Number
Object
Code
Action to be
Taken
Adopted
Budget
Change
+/-
Revised
Budget
1 Ives Pool - Salary 100 42 4090 Increase 26,534 1,020 27,554 2 Ives Pool - Utilities 100 42 4710 Decrease 102,834 (8,000) 94,834 -
-
-
-
-
-
-
-
-
-
-
129,368 (6,980) 122,388
Date
Date
a different process that requires a meeting with the Interim City Manager Budget Amendment Form
Instructions:
 Use this form to create or adjust the adopted budget between line items expense  Attach justification and documentation requiring change to the adopted budget.  If the amendment involves changes to salary/benefit, funding a new position, or revising a job classification, it follows  Use the Line Item table below to review budget items.

Submit this form directly to the Administrative Services Department.

General Information
Ives Pool
Contact Person: N/A N/A
Budget Amendment
TOTAL
Comments/Justification:
1) The increase in salary reflects the removal of the vacancy‑savings adjustment that was applied citywide during the last budget development, regardless of whether a department had vacant positions. Eliminating this adjustment brings the budget in line with current staffing conditions 2) A decrease in PG&E utility costs reflects updated and more accurate usage patterns.

City Manager Signature
Attach justification memo for budget change if need more space.

Approvals
Department Head Signature
For Administrative Services use only
Data Entry_______
Date__/__/__
Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

Page 16 of 31 ends

City of Sebastopol General Fund Forecast

NO HOTEL
($ in 000) FY25 FY26 FY27 FY28 FY29 FY30 FY31
Property Tax $3,643 $3,734 $3,884 $3,962 $4,080 $4,284 $4,497 Sales Tax 2,352 2,292 2,245 2,234 2,325 2,414 2,501
Measure T/Q Sales Tax 2,293 2,265 2,218 2,205 2,297 2,387 2,474 Measure U Sales Tax 371 1,510 1,469 1,535 1,655 1,700 1,745 Utility Users Tax 914 950 949 975 1,002 1,030 1,058
Transient Occup Tax 480 535 537 565 610 627 644
Other Taxes 715 736 749 754 767 788 809
Intergovernmental 62 59 59 59 59 59 59
Building Permits 533 1,100 400 408 416 424 433
Fees & Charges 185 152 148 147 153 160 167
Interest 109 100 46 36 27 19 12
Other Revenues 476 196 198 200 203 205 207
Transfers In 210 275 126 127 128 130 131
Cost Allocation* 1,762 1,796 1,837 1,878 1,920 1,964 2,008 Total Revenue 14,105 15,700 14,864 15,086 15,643 16,189 16,745 Salaries 4,261 4,120 4,796 4,976 5,163 5,356 5,557
Part-time 106 62 63 64 65 67 68
Overtime 325 182 188 193 199 205 211
Pension 1,725 1,898 1,910 1,936 2,035 2,014 1,991
Health/OPEB 956 1,172 1,213 1,249 1,286 1,325 1,364
Other Personnel 1,048 1,000 1,029 1,062 1,095 1,130 1,165 Vacancy Savings - (148) (368) (379) (394) (404) (414)
Subtotal Personnel 8,421 8,286 8,832 9,102 9,450 9,693 9,943 Services & Supplies 4,049 4,584 4,699 4,816 4,936 5,060 5,186 Liability Insurance 655 759 778 797 817 838 859
Utilities 555 522 535 549 562 576 591
Contributions 69 8 8 9 9 9 9
Debt Service 270 151 158 111 86 86 86
Capital/Other Tfrs Out 443 924 727 744 796 817 838
Asset Preservation/Adds - - 300 308 315 323 331
Total Expense 14,463 15,234 16,037 16,436 16,972 17,402 17,843 Net Annual (359) 467 (1,173) (1,349) (1,329) (1,212) (1,099) Pension Trust Contribs - - 382 387 407 403 398
Balance Sheet Adjusts (30) - - - - - -
Beginning Fund Balance 5,698 5,310 5,776 4,985 4,023 3,101 2,291 Ending Fund Balance 5,310 5,776 4,985 4,023 3,101 2,291 1,591 less: Commited/Assigned 1,306 1,306 1,306 1,086 866 646 426 Unassigned Balance 4,004 4,470 3,679 2,937 2,235 1,645 1,165 Pension Trust (105) 3,199 3,343 3,112 2,865 2,586 2,300 2,005 Total Avail Balance 7,203 7,813 6,791 5,801 4,821 3,945 3,170 Unassign as % of Tot Exp 27.7% 29.3% 22.9% 17.9% 13.2% 9.5% 6.5% Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

Page 17 of 31 ends

City of Sebastopol General Fund Forecast
BARLOW HOTEL 27-28
($ in 000) FY25 FY26 FY27 FY28 FY29 FY30 FY31
Property Tax $3,643 $3,734 $3,884 $3,962 $4,080 $4,284 $4,497 Sales Tax 2,352 2,292 2,245 2,234 2,325 2,414 2,501
Measure T/Q Sales Tax 2,293 2,265 2,218 2,205 2,297 2,387 2,474 Measure U Sales Tax 371 1,510 1,469 1,535 1,655 1,700 1,745 Utility Users Tax 914 950 949 975 1,002 1,030 1,058
Transient Occup Tax 480 535 537 833 1,266 1,377 1,488
Other Taxes 715 736 749 754 767 788 809
Intergovernmental 62 59 59 59 59 59 59
Building Permits 533 1,100 400 408 416 424 433
Fees & Charges 185 152 148 147 153 160 167
Interest 109 100 46 39 36 36 37
Other Revenues 476 196 198 200 203 205 207
Transfers In 210 275 126 127 128 130 131
Cost Allocation* 1,762 1,796 1,837 1,878 1,920 1,964 2,008 Total Revenue 14,105 15,700 14,864 15,357 16,309 16,956 17,614 Salaries 4,261 4,120 4,796 4,976 5,163 5,356 5,557
Part-time 106 62 63 64 65 67 68
Overtime 325 182 188 193 199 205 211
Pension 1,725 1,898 1,910 1,936 2,035 2,014 1,991
Health/OPEB 956 1,172 1,213 1,249 1,286 1,325 1,364
Other Personnel 1,048 1,000 1,029 1,062 1,095 1,130 1,165 Vacancy Savings - (148) (368) (379) (394) (404) (414)
Subtotal Personnel 8,421 8,286 8,832 9,102 9,450 9,693 9,943 Services & Supplies 4,049 4,584 4,699 4,816 4,936 5,060 5,186 Liability Insurance 655 759 778 797 817 838 859
Utilities 555 522 535 549 562 576 591
Contributions 69 8 8 9 9 9 9
Debt Service 270 151 158 111 86 86 86
Capital/Other Tfrs Out 443 924 727 744 796 817 838
Asset Preservation/Adds - - 300 308 315 323 331
Total Expense 14,463 15,234 16,037 16,436 16,972 17,402 17,843 Net Annual (359) 467 (1,173) (1,079) (664) (445) (230)
Pension Trust Contribs - - 382 387 407 403 398
Balance Sheet Adjusts (30) - - - - - -
Beginning Fund Balance 5,698 5,310 5,776 4,985 4,293 4,037 3,994 Ending Fund Balance 5,310 5,776 4,985 4,293 4,037 3,994 4,163 less: Commited/Assigned 1,306 1,306 1,306 1,086 866 646 426 Unassigned Balance 4,004 4,470 3,679 3,207 3,171 3,348 3,737 Pension Trust (105) 3,199 3,343 3,112 2,865 2,586 2,300 2,005 Total Avail Balance 7,203 7,813 6,791 6,072 5,757 5,648 5,742 Unassign as % of Tot Exp 27.7% 29.3% 22.9% 19.5% 18.7% 19.2% 20.9% Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

Page 18 of 31 ends

DESCRIPTION
2024-25
Actual
2025-26
Adopted
Budget
2025-26
Proposed
Budget
Adjustment
$ Inc/(Dec)
Adjusted vs.

Adopted
Budget
% Change
Adjusted vs.

Adopted
Budget

OPERATING REVENUE
Interest & Rents 150 1,000 250 -750 -75.0%
Charges for Services 1,000 138,082 5,000 -133,082 -96.4% TOTAL REVENUE 1,150 139,082 5,250 -133,832 -96.2%

OPERATING EXPENSES
Miscellanous Expense - - 4,145 4,145 0.0%
Transfer Out - - - -0 0.0%
TOTAL OPERATING EXPENSE - - 4,145 (4,145) 0.0%
NET BUDGETARY RESULT 1,150 139,082 1,105
Addition/(Use) of Reserves 1,150 139,082 1,105
Beginning Fund Balance (Estimated) 2,996 4,147 4,147
Ending Fund Balance (Estimated) 4,147 143,229 5,252
FIRE FACILITIES FEE FUND 220
Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

Page 19 of 31 ends

Description
2024-25
Actual
2025-26
Adopted
Budget
2025-26
Proposed
Budget
Adjustment
$ Inc/(Dec)
Adjusted vs.

Adopted
Budget
% Inc/(Dec)
Adjusted vs.

Adopted
Budget

OPERATING REVENUE
Usage Charges - Single Family 1,782,411 1,764,321 1,764,321 (0) 0.0% Usage Charges - Commerical 1,429,003 1,510,087 1,510,087 (0) 0.0% Usage Charges - Water Tower 45,047 54,500 54,500 0 0.0% Interest Income 45,171 75,000 75,000 - 0.0%
New Service Fee 10,200 10,000 9,600 (400) -4.0%
Penalties 22,067 20,000 21,375 1,375 6.9%
Miscellaneous Income 45,965 44,000 44,600 600 1.4%
TOTAL REVENUE 3,379,864 3,477,908 3,479,483 1,575 0.0%

OPERATING EXPENDITURE
Salaries & Wages 359,327 370,268 384,513 14,245 3.8%
Benefits 282,390 244,830 233,946 (10,884) -4.4%
Contracted Services 159,241 328,800 319,470 (9,330) -2.8% Services & Supplies 195,954 222,490 219,990 (2,500) -1.1% Conference & Training Expense 4,439 5,000 5,000 - 0.0%
Utilities 235,947 317,350 317,350 - 0.0%
Allocated Insurance 81,510 104,755 104,755 - 0.0%
Capital Outlay - 160,500 160,500 - 0.0%
Debt Service Payments 52,229 252,657 252,657 - 0.0%
Cost Allocation Plan 852,863 845,358 845,358 - 0.0%
Transfers Out 50,230 115,000 115,000 - 0.0%
TOTAL EXPENDITURES 2,274,130 2,967,008 2,958,539 (8,469) -0.3% Net Surplus/(Deficit) 1,105,734 510,900 520,944
WATER OPERATING FUND - 500

FINANCIAL REPORTING
Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

Page 20 of 31 ends

Description
2024-25
Actual
2025-26
Adopted
Budget
2025-26
Proposed
Budget
Adjustment
$ Inc/(Dec)
Adjusted vs.

Adopted
Budget
% Inc/(Dec)
Adjusted vs.

Adopted
Budget
Salaries & Wages
4010 - Salaries - Full Time 318,931 345,813 345,813 - 0.0% 4011 - Salaries - Part Time - - - 0.0%
4012 - Overtime 21,733 24,500 24,500 - 0.0%
4013 - Standby/Shift 14,914 14,200 14,200 - 0.0%
4090 - Vacancy Savings - (14,245) - 14,245 -100.0%
4023 - One Time Payment 7,650 - - - 0.0%
4990 - Staff-Time Projects Reimb (3,900) - - - 0.0%
Total Salaries & Wages 359,327 370,268 384,513 14,245 3.8% Benefits
4100 - Employee Benefits (8,986) - - - 0.0%
4102 - Uniform Allowance 2,550 - 3,200 3,200 0.0%
4105 - Medicare & Fica 5,318 5,014 5,014 - 0.0%
4110 - CalPERS Employer Rate 115,268 33,983 33,983 - 0.0% 4111 - CalPERS UAL Cost 60,746 73,475 71,025 (2,450) -3.3% 4130 - Health Insurance 94,970 115,634 104,000 (11,634) -10.1% 4150 - Dental Insurance 9,740 11,067 11,067 - 0.0%
4151 - Vision Insurance 1,026 1,088 1,088 - 0.0%
4181 - Long Term Disability Insurance 999 2,982 2,982 - 0.0% 4182 - Short Term Disability Insurance 414 497 497 - 0.0% 4183 - EAP (Employee Asst Prog) 103 280 280 - 0.0%
4184 - Life Insurance 242 810 810 - 0.0%
Total Benefits 282,390 244,830 233,946 (10,884) -4.4%
Contracted Services
4210 - Professional Contract Services 140,875 310,800 295,470 (15,330) -4.9% 4211 - Banking Fees 18,366 18,000 24,000 6,000 33.3%
Total Contracted Services 159,241 328,800 319,470 (9,330) -2.8% Services & Supplies
4301 - Bad Debt Expense 2,110 5,000 2,500 (2,500) -50.0% 4310 - Office Supplies - 1,500 1,500 - 0.0%
4330 - Misc Supplies & Services 171,106 182,090 182,090 - 0.0% 4332 - Janitorial & Safety Supplies - 1,200 1,200 - 0.0% 4361 - Meter Replacement Program 5,992 7,500 7,500 - 0.0% 4365 - Fire Hydrant Replacement Program 13,203 10,000 10,000 - 0.0% 4366 - Backflow Prevention Program 222 5,200 5,200 - 0.0% 4380 - Vehicle Maintenance 3,321 10,000 10,000 - 0.0%
Total Services & Supplies 195,954 222,490 219,990 (2,500) -1.1% Conference & Training Expense
4510 - Conference & Training 3,051 3,000 3,000 - 0.0%
4515 - Meetings & Travel 1,388 2,000 2,000 - 0.0%
Total Conference & Training Expense 4,439 5,000 5,000 - 0.0% Utilities
4710 - Utilities - Gas & Electric 230,402 310,000 310,000 - 0.0% 4750 - Telecommunications 5,544 7,350 7,350 - 0.0%
Total Utilities 235,947 317,350 317,350 - 0.0%
Detail - Water Operation Fund - 500
Budget Expenditures
Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

Page 21 of 31 ends

Description
2024-25
Actual
2025-26
Adopted
Budget
2025-26
Proposed
Budget
Adjustment
$ Inc/(Dec)
Adjusted vs.

Adopted
Budget
% Inc/(Dec)
Adjusted vs.

Adopted
Budget
Detail - Water Operation Fund - 500
Budget Expenditures
Allocated Insurance | Others
4996 - Allocated Liability Insurance 53,266 71,485 71,485 - 0.0% 4997 - Allocated Wrkrs Comp Insurance 28,244 33,270 33,270 - 0.0% 4998 - Cost Allocation Plan (CAP) 852,863 845,358 845,358 - 0.0% 4999 - Transfers Out 50,230 115,000 115,000 - 0.0%
5100 - Capital Outlay - 160,500 160,500 - 0.0%
Total Allocated Insurance | Others 984,603 1,225,613 1,225,613 - 0.0% Debt Service
6100 - Principal - 198,633 198,633 - 0.0%
6200 - Interest 52,229 54,024 54,024 - 0.0%
Total Debt Service 52,229 252,657 252,657 - 0.0%
TOTAL 2,274,130 2,967,008 2,958,539 (8,469) -0.3%
Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

Page 22 of 31 ends

Description
2024-25
Actual
2025-26
Adopted
Budget
2025-26
Proposed
Adjusted
Budget
$ Inc/(Dec)
Adjusted vs.

Adopted
Budget
% Inc/(Dec)
Adjusted vs.

Adopted
Budget

OPERATING REVENUE
Usage Charges - Single Family 2,378,207 2,535,849 2,535,849 (0) 0.0% Usage Charges - Commerical 2,295,499 2,639,354 2,639,354 0 0.0% Interest Income 11,305 20,000 20,000 - 0.0%
Penalties 20,310 20,000 20,000 - 0.0%
TOTAL REVENUE 4,705,321 5,215,203 5,215,203 - 0.0%

OPERATING EXPENDITURE
Salaries & Wages 310,272 325,142 337,382 12,240 3.8%
Benefits 245,639 219,286 206,320 (12,966) -5.9%
Contracted Services 2,149,631 129,550 132,400 2,850 2.2% Subregional O&M - 1,953,889 1,953,889 - 0.0%
Services & Supplies 29,268 107,000 99,000 (8,000) -7.5% Conference & Training Expense 3,175 8,000 8,000 - 0.0%
Utilities 68,698 65,198 64,698 (500) -0.8%
Allocated Insurance 57,066 68,905 68,905 - 0.0%
Capital Outlay - 148,000 148,000 - 0.0%
Debt Service Payments 25,668 119,888 119,888 - 0.0%
Cost Allocation Plan 908,934 950,965 950,965 - 0.0%
4999 - Transfers Out 32,551 187,000 187,000 - 0.0%
TOTAL EXPENDITURES 3,830,902 4,282,823 4,276,447 (6,376) -0.1% Net Surplus/(Deficit) 874,419 932,380 938,756
WASTEWATER OPERATING FUND - 510

FINANCIAL REPORTING
Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

Page 23 of 31 ends

Description
2024-25
Actual
2025-26
Adopted
Budget
2025-26
Proposed
Adjusted
Budget
$ Inc/(Dec)
Adjusted vs.

Adopted
Budget
% Inc/(Dec)
Adjusted vs.

Adopted
Budget

OPERATING EXPENDITURE
Salaries & Wages
4010 - Salaries - Full Time 271,638 306,282 306,282 - 0.0% 4012 - Overtime 19,884 19,600 19,600 - 0.0%
4013 - Standby/Shift 11,850 11,500 11,500 - 0.0%
4090 - Vacancy Savings - (12,240) - 12,240 -100.0%
4023 - One Time Payment 6,900 - - - 0.0%
Total Salaries & Wages 310,272 325,142 337,382 12,240 3.8% Benefits
4100 - Employee Benefits (13,479) - - - 0.0%
4102 - Uniform Allowance 2,300 2,300 3,000 700 30.4%
4105 - Medicare & Fica 4,544 4,441 4,441 - 0.0%
4110 - CalPERS Employer Rate 107,191 30,519 30,519 - 0.0% 4111 - CalPERS Employer Rate-Unfunded 53,360 63,200 60,970 (2,230) -3.5% 4130 - Health Insurance 81,089 103,436 92,000 (11,436) -11.1% 4150 - Dental Insurance 8,315 9,934 9,934 - 0.0%
4151 - Vision Insurance 875 977 977 - 0.0%
4181 - Long Term Disability Insurance 810 2,982 2,982 - 0.0% 4182 - Short Term Disability Insurance 340 407 407 - 0.0% 4183 - EAP (Employee Asst Prog) 88 280 280 0 0.0%
4184 - Life Insurance 207 810 810 - 0.0%
Total Benefits 245,639 219,286 206,320 (12,966) -5.9%
Contracted Services
4210 - Professional Contract Services 2,131,265 110,250 110,250 - 0.0% 4210 - Subregional O&M - 1,953,889 1,953,889 - 0.0%
4211 - Banking Fees 18,366 19,300 22,150 2,850 14.8%
Total Contracted Services 2,149,631 2,083,439 2,086,289 2,850 0.1% Bad Debt Expense
4301 - Bad Debt Expense 2,486 5,000 2,500 (2,500) -50.0% Total Bad Debt Expense 2,486 5,000 2,500 (2,500) -50.0% Services & Supplies
4330 - Misc Supplies & Services 71,961 89,500 89,500 - 0.0% 4332 - Janitorial & Safety Supplies - 1,500 - (1,500) -100.0% Total Services & Supplies 71,961 91,000 89,500 (1,500) -1.6% Special Programs
4227 - Sewer Lateral Grant Program (50,000) - - - 0.0%
4360 - Conservation Rebate Program - 1,000 - (1,000) -100.0% Total Special Programs (50,000) 1,000 - (1,000) -100.0% Vehicle Expense
4380 - Vehicle Maintenance 4,822 10,000 7,000 (3,000) -30.0% Total Vehicle Expense 4,822 10,000 7,000 (3,000) -30.0% Conference & Training Expense
4510 - Conference & Training 915 5,000 5,000 - 0.0%
Detail - Wastewater Operating Fund 510
Budget Expenditures
Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

Page 24 of 31 ends

Description
2024-25
Actual
2025-26
Adopted
Budget
2025-26
Proposed
Adjusted
Budget
$ Inc/(Dec)
Adjusted vs.

Adopted
Budget
% Inc/(Dec)
Adjusted vs.

Adopted
Budget
Detail - Wastewater Operating Fund 510
Budget Expenditures
4515 - Meetings & Travel 2,260 3,000 3,000 - 0.0%
Total Conference & Training Expense 3,175 8,000 8,000 - 0.0% Utilities
4710 - Utilities - Gas & Electric 64,505 60,000 60,000 - 0.0% 4711 - Utilities - City Bill 3,080 3,198 3,198 - 0.0%
Total Utilities 67,586 63,198 63,198 - 0.0%
Telecommunications
4750 - Telecommunications 1,113 2,000 1,500 (500) -25.0% Total Telecommunications 1,113 2,000 1,500 (500) -25.0% Allocated Insurance
4996 - Allocated Liability Insurance 30,012 40,285 40,285 - 0.0% 4997 - Allocated Wrkrs Comp Insurance 27,053 28,620 28,620 - 0.0% Total Allocated Insurance 57,066 68,905 68,905 - 0.0%
G & A Allocation
4998 - G & A Allocation 908,934 950,965 950,965 - 0.0%
Total G & A Allocation 908,934 950,965 950,965 - 0.0%
Transfers Out
4999 - Transfers Out 32,551 187,000 187,000 - 0.0%
Total Transfers Out 32,551 187,000 187,000 - 0.0%
Capital Outlay
5100 - Capital Outlay - 148,000 148,000 - 0.0%
Total Capital Outlay - 148,000 148,000 - 0.0%
Debt Service Payments
6100 - Principal - 97,127 97,127 - 0.0%
6200 - Interest 25,668 22,761 22,761 - 0.0%
Total Debt Service Payments 25,668 119,888 119,888 - 0.0% TOTAL 3,830,902 4,282,823 4,276,447 (6,376) -0.1%
Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

Page 25 of 31 ends

RESOLUTION NUMBER: XXXX-2026

A RESOLUTION OF THE SEBASTOPOL CITY COUNCIL APPROVING ADJUSTMENTS TO THE BUDGET OF FISCAL YEAR 2025-26
WHEREAS, the City of Sebastopol City Council did, on July 1 2025, adopt the budget for fiscal year 2025-26; and
WHEREAS, the City of Sebastopol mid-year budget review provides an update on key financial factors affecting the FY 2025–26 budget; and
WHEREAS, the mid-year budget review is not intended to be a full discussion of the budget, but is an opportunity for City Council to:

1. Review the General Fund and other funds;

2. Make adjustments to achieve a more accurate budget for the current fiscal year (resulting in greater budget transparency); and

3. To help shape the development of next year’s budget.

WHEREAS, these adjustments resulted in a new surplus of $466,500 higher than the originally adopted budget surplus of $3,945:

THEREFORE, BE IT RESOLVED, that the City Council of the City of Sebastopol adopts the following changes to the operating budgets for 2025-26 by fund and by account:

Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

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Description
2024-25
Actual
2025-26
Adopted
Budget
2025-26
Proposed
Budget
Adjustment
$ Inc/(Dec)
Adjusted vs.

Adopted
Budget
% Inc/(Dec)
Adjusted vs.

Adopted
Budget

GENERAL FUND
FY 25-26 MID YEAR BUDGET ADJUSTMENT
Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

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DESCRIPTION
2024-25
Actual
2025-26
Adopted
Budget
2025-26
Proposed
Budget
Adjustment
$ Inc/(Dec)
Adjusted vs.

Adopted
Budget
% Change
Adjusted vs.

Adopted
Budget

OPERATING REVENUE
Interest & Rents 150 1,000 250 -750 -75.0%
Charges for Services 1,000 138,082 5,000 -133,082 -96.4% TOTAL REVENUE 1,150 139,082 5,250 -133,832 -96.2%

OPERATING EXPENSES
Miscellanous Expense - - 4,145 4,145 0.0%
Transfer Out - - - -0 0.0%
TOTAL OPERATING EXPENSE - - 4,145 (4,145) 0.0%
NET BUDGETARY RESULT 1,150 139,082 1,105
FIRE FACILITIES FEE FUND 220
Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

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Description
2024-25
Actual
2025-26
Adopted
Budget
2025-26
Proposed
Budget
Adjustment
$ Inc/(Dec)
Adjusted vs.

Adopted
Budget
% Inc/(Dec)
Adjusted vs.

Adopted
Budget

FINANCIAL REPORTING
Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

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Description
2024-25
Actual
2025-26
Adopted
Budget
2025-26
Proposed
Adjusted
Budget
$ Inc/(Dec)
Adjusted vs.

Adopted
Budget
% Inc/(Dec)
Adjusted vs.

Adopted
Budget

FINANCIAL REPORTING
IN COUNCIL DULY PASSED this 3rd day of February 2026.

I, the undersigned, hereby certify that the foregoing Resolution was duly adopted by the City of Sebastopol City Council by the following vote:

APPROVED:_____________________________________________
Jill McLewis
Mayor, City of Sebastopol
VOTE:

AYES:

NOES:

ABSENT:

ABTAIN:

ATTEST:_____________________________________________
Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

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Mary Gourley, Interim City Manager/Assistant City Manager/City Clerk, MMC APPROVED AS TO FORM: _______________________________________ Alex Mog, City Attorney
Agenda Item Number 14 Agenda Item Number 14
City Council Meeting Packet of February 3, 2026

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Sebastopol City CouncilFebruary 3, 2026

Sebastopol City Council
February 3, 2026