Sebastopol City Council
May 5, 2026

CITY OF SEBASTOPOL CITY COUNCIL
AGENDA ITEM REPORT FOR MEETING OF: May 5, 2026
============================================================================================== To: Honorable Mayor and City Councilmembers
From: Ana Kwong – Administrative Services Director
Responsible Department: Administrative Services
Subject: FY25-26 Quarter 3 (January – March 2026) Financial Updates General Fund and Enterprise Funds
============================================================================================== RECOMMENDATION:

Staff recommends the Sebastopol City Council receive year-to-date financial information for the General Fund and Enterprise Funds.

PROCESS OF AGENDA ITEM:
a. Introduction of agenda item by City staff
b. Questions and discussion from Councilmembers
c. Open for Public Comment
d. Council Discussion
e. Receipt of Report
EXECUTIVE SUMMARY:

As of March 31, 2026, the City’s General Fund revenues are at approximately 58.8% of the annual budget. This variance is largely the result of timing, not a revenue shortfall. Major revenue sources such as sales tax and transient occupancy tax are typically received two months in arrears, and other revenues do not come in evenly throughout the year. As a result, the current 16% gap from the 75% benchmark reflects normal timing differences rather than underperformance.

Using the best information available as of March 31, 2026, the Water Fund has billed 64.3% of its budgeted annual revenues, with expenses at 69.3% of the adjusted budget for the fiscal year. Similarly, the Wastewater Fund has billed

62.8% of its full-year budgeted revenues, while expenses are at 64.6% of the adjusted budget. Overall, both enterprise funds are generally tracking in line with expectations at this point in the fiscal year.

BACKGROUND:

This report summarizes the City’s General Fund performance through the third quarter of FY 2025-26, using the most current financial information available as of March 31, 2026. It reflects revenues and expenditures recorded to date and provides an overview of the City’s financial position as approximately 75% of the fiscal year has elapsed. The update explains timing-related variances between actual results and the adjusted budget, particularly for revenue sources that are received in the 4
th quarter of the fiscal year. The report also includes a year-over-year comparison to the same period in the prior fiscal year to identify areas of growth and items that warrant continued monitoring.

In addition, this report provides an overview of the City’s Enterprise Funds performance for the third quarter of FY 2025-26, based on financial data available as of March 31, 2026. It presents revenues and expenditures recorded to date, offering a snapshot of the enterprise funds’ financial position at this stage of the fiscal year. Revenue billings reflect approximately eight months of activity, consistent with bi-monthly billing and collection cycles.

DISCUSSION:

General Fund:

Revenues in this update are reported on a cash basis, meaning amounts are recognized when received rather than when earned. As of this reporting period, the City has received the first installment of property tax payments, which is the City’s second largest revenue source. This installment represents approximately 56% of the annual property tax budget, largely because some property owners pay their full annual obligation upfront rather than splitting payments Agenda Item Number 8
Agenda Item Number 8
City Council Meeting Packet of May 5, 2026

into two installments. As of the preparation of this staff report, the City has also received the second property tax installment; when this is taken into account, property tax revenues are tracking in line with the adjusted budget.

Beyond property taxes, other major revenue sources—such as sales tax and transient occupancy tax—do not follow a uniform monthly collection pattern. These revenues are often received later in the fiscal year or reported in arrears, which can temporarily make certain categories appear under budget at this point in time. These variances are primarily timing related and are not indicative of a structural revenue issue in the General Fund.

On the expenditure side, spending patterns also do not occur evenly throughout the year. Certain costs are incurred periodically or front loaded, which can cause individual accounts to appear over or under budget during interim reporting periods. However, when viewed holistically, overall spending remains aligned with annual projections.

Enterprise Funds:

The Enterprise Funds are used to account for services that are self-supporting, where the costs of providing service are primarily recovered through user fees and charges rather than tax revenues. This includes essential services such as water and wastewater, covering activities such as operations, maintenance, billing and collections, administration, financing, and debt service. The primary revenue source for these funds is customer charges for water use, wastewater collection, and fees related to new service connections.

On the revenue side, the City is now in its second year of implementing water and wastewater rate increases. As a result, the Enterprise Funds’ financial position has improved, with revenues exceeding annual expenses, generating a positive net impact rather than the shortfalls experienced in prior years. These funds are used to establish reserves or to save for future large capital projects.

On the expenditure side, Enterprise Fund spending also reflects non-lineartiming. Water and Wastewater expenditures are tracking slightly below the 75% benchmark. These fluctuations are typical and largely reflect the timing of operational activities and capital work. Overall, the Enterprise Funds continues to function as a self- supporting model, ensuring that utility services are delivered in a financially responsible manner and managed with long term sustainability in mind.

STAFF ANALYSIS:

General Fund Revenues:

Description
2024-25
Actual
Y-T-D
Actual
3/31/25
2025-26
Adopted
Budget
2025-26
Adjusted
Budget
Y-T-D
Actual
3/31/26
% of
Adjusted
Budget

OPERATING REVENUE
Property Tax 3,642,556 1,923,289 3,639,105 3,734,475 2,013,507 53.9% Real Property Transfer Tax 62,203 44,532 50,000 50,000 35,751 71.5% Sales Taxes 5,015,508 2,742,256 6,130,700 6,067,200 3,469,967 57.2% User Taxes 925,705 628,548 962,050 962,050 637,478 66.3% Transient Occupancy Tax 480,263 287,719 534,500 534,500 293,694 54.9% Franchise Fees 490,118 234,064 530,000 522,000 262,117 50.2% Licenses & Permits 676,253 354,874 1,244,000 1,244,000 638,028 51.3% Fines & Special Assessments 70,935 61,384 77,300 77,300 52,645 68.1% Intergovernmental Revenues 27,724 17,596 20,200 20,200 10,224 50.6% Interest & Rents 166,399 76,787 157,450 157,450 109,135 69.3% Charges for Services 182,375 126,161 162,300 153,065 134,964 88.2% Miscellaneous Revenue 393,335 383,475 110,790 106,790 99,549 93.2% Cost Allocation Plan 1,761,797 1,321,348 1,796,323 1,796,323 1,347,242 75.0% Transfers In 209,622 132,489 275,000 275,000 129,500 47.1% TOTAL REVENUES 14,104,793 8,334,522 15,689,718 15,700,353 9,233,801 58.8% Agenda Item Number 8
Agenda Item Number 8
City Council Meeting Packet of May 5, 2026

As of March 31, 2026, General Fund revenues total $9.23 million, representing 58.8% of the FY 2025-26 adjusted budget of $15.70 million. Through the third quarter of FY 2025-26 (as of March 31, 2026), General Fund revenues total $9.23 million, an increase of approximately $899,000 (10.8%) compared to the same period last year, when revenues totaled $8.33 million. Overall revenues are also tracking in line with expectations at 58.8% of the adjusted annual budget.

The largest contributorto the quarter-over-quarterrevenue increase is sales tax, which rose by approximately $728,000 compared to the third quarter of the prior fiscal year, reflecting voter-approved local sales tax measures. Additional year-over-year changes were observed in licenses and permits, driven by increased development-related activity, and interest earnings, reflecting higher interest rates. These gains were partially offset by a reduction in miscellaneous revenues, as the prior year included one-time reimbursement revenues from the new solid waste hauler related to staff support and operational assistance provided during service implementation. Property tax revenues also posted a modest increase, consistent with assessed valuation growth and normal revenue timing.

Overall Assessment
At the close of the third quarter, General Fund revenues are outperforming the prior fiscal year and remain aligned with the adjusted budget on an aggregate basis. While individual revenue categories will continue to fluctuate based on timing and economic conditions, no significant revenue shortfalls are evident at this stage of the fiscal year. As we approach the end of the fiscal year, staff will continue to closely monitor economically sensitive revenues, particularly sales tax and development-related revenues, through the remainder of the year.

General Fund Expenditures:

Description
2024-25
Actual
Y-T-D
Actual
3/31/25
2025-26
Adopted
Budget
2025-26
Adjusted
Budget
Y-T-D
Actual
3/31/26
% of
Adjusted
Budget
OPERATING EXPENDITURE - By Department
City Council 176,804 120,044 183,214 165,951 117,207 70.6% City Manager 827,312 495,844 581,282 292,508 144,677 49.5% City Attorney 646,785 440,552 643,750 643,750 279,437 43.4% Assistant City Manaer | City Clerk 457,159 343,696 470,818 478,180 366,895 76.7% Administrative Services (Finance) 1,385,796 1,015,428 1,466,539 1,452,124 1,065,643 73.4% Planning 657,815 494,037 701,666 652,812 419,112 64.2%
Building 303,081 199,040 437,909 354,908 213,774 60.2%
Fire & Prevention 1,492,276 906,292 1,247,640 1,247,640 1,217,911 97.6% Police 5,123,538 3,829,047 5,767,329 5,775,329 4,087,891 70.8% Senior Center 2,298,834 19,354 47,650 47,650 16,423 34.5% Public Works 42,620 1,610,292 2,650,318 2,650,318 1,634,072 61.7% Community Center 172,309 112,275 164,202 164,201 88,422 53.9% Ives Pool 212,031 172,122 225,761 218,781 105,098 48.0% Non Departmental 97,126 64,819 146,940 146,940 119,769 81.5% Debt Service Payments 269,979 179,391 150,755 150,755 150,754 100.0% Transfers Out 300,000 - 800,000 800,000 51 0.0%
TOTAL EXPENDITURES 14,463,465 10,002,233 15,685,773 15,241,847 10,027,136 65.8% As of March 31, 2026, General Fund expenditures total $10.03 million, representing 65.8% of the FY 2025-26 adjusted budget of $15.24 million. At the same point in the prior fiscal year, expenditures totaled $10.00 million, indicating that overall spending is largely flat year-over-year. At the close of the third quarter, General Fund expenditures are generally aligned with the adjusted budget, with variances largely explained by timing, staffing, and scheduled payments rather than unforeseen cost pressures or savings. Staff will continue to monitor departments that are trending above the expected benchmark while recognizing that several costs are front-loaded and expected to normalize by year-end.

Agenda Item Number 8
Agenda Item Number 8
City Council Meeting Packet of May 5, 2026

Transfer-out: Measure U is a voter-approved sales tax that helps fund road repairs, public safety, and city facilities. In FY 2025-26, Measure U is projected to generate about $1.51 million. The City budgeted $800,000 for priority projects such as pavement repairs, Police Station emergency improvements, and a fuel station upgrade at the Corporation Yard. Only about $290,000 is expected to be spent this year, with the remaining $510,000 carried forward into FY 2026-27 to complete projects already approved. Overall, Measure U funds are being used consistent with the City Council’s adopted Measure U spending policy, with spending paced over multiple years to support long-term infrastructure needs.

Water Fund:

The City is now in its second year of implementing water rate adjustments, which have supported continued operational stability and a strengthening financial position within the Water Fund. As of the third quarter, year-to-date revenues total $2.24 million, representing 64.3% of the adjusted annual budget. Expenditures during this period total $2.05 million, or 69.3% of the budget. This results in a positive net position of approximately $187,000.

The net position is lower than the $611,000 reported at the same point in the prior fiscal year, primarily due to the timing of revenue billing. Billing occurs on a bi-monthly basis, and service periods from July 1, 2025 through February 28, 2026 have been billed to date. Billing for the March–April 2026 service period is scheduled for May 5, 2026, and billing for the May–June 2026 service period is scheduled for July 5, 2026. At this point last year, revenues reflected nine months of billing. Despite this timing difference, overall revenue and expenditure performance remains consistent with third-quarter expectations.

Service Period Billing Date Status
July–August 2025 September 9, 2025 Billed
September–October 2025 November 5, 2025 Billed
November–December 2025 January 7, 2026 Billed
January–February 2026 March 4, 2026 Billed
March–April 2026 May 5, 2026 Not yet billed
May–June 2026 July 5, 2026 Not yet billed
Operating expenditures—which include salaries and wages, employee benefits, contracted services, debt service payments, cost allocation plan charges, and transfers out—are currently tracking at 69.3% of the annual budget. This level is below the standard 75% year-to-date benchmark, largely due to normal expenditure timing. As the fiscal year progresses and remaining obligations are incurred, spending is expected to align more closely with year-end budgeted levels.

Overall, the Water Fund continues to perform within expected parameters for the third quarter, with current variances primarily attributable to billing and expenditure timing rather than underlying structural issues.

Wastewater Fund:

The quarterly financial report for the Wastewater Fund reflects the same billing cycle as the Water Fund, covering the period from July through February. For this period, revenue collections total 62.8% of the annual budget, which is generally consistent with expectations given the timing of billings and collections to date.

On the expenditure side, costs are tracking at 64.6% of the annual budget, slightly below the 75% year-to-date benchmark. This variance is primarily attributable to the timing of Subregional wastewater contract payments.

Specifically, the expenditures reflected to date cover eight months of service rather than the full nine months typically expected by this point in the fiscal year. As the fiscal year progresses toward June and remaining contractual obligations are invoiced and paid, expenditures are anticipated to align more closely with budgeted projections.

Agenda Item Number 8
Agenda Item Number 8
City Council Meeting Packet of May 5, 2026

Overall, the Wastewater Fund continues to operate within expected financial parameters, with current variances largely driven by normal timing factors rather than underlying budgetary concerns.

BUDGET COMMITTEE REVIEW
As of the preparation of this staff report, the Budget Committee has not yet reviewed the quarterly financial update. The Committee is scheduled to review the update on May 4 and will provide any additional information at the May 5, 2026 City Council 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 Action Plan 2 – Quarterly Financial Report
General Fund: A quarterly update is an essential tool for monitoring and managing the financial health of an organization. It provides a snapshot of the financial performance over the past three months, allowing City Council to assess progress, identify trends, and make informed decisions.

FISCAL IMPACT:

There is no fiscal impact in receiving this informational financial update.

PUBLIC COMMENT:

As ofthe writing ofthis staffreport, theCity has notreceived any public comment on this item. However, if staff receives public comment from interested parties following the publication and distribution of this staff report, such comments will be provided to the City Council as supplemental materials before or at the meeting.

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 the scheduled meeting date.

RESTATED RECOMMENDATION:

That the City Council receive year-to-date financial information.

CITY COUNCIL OPTION(S):

There are no options to consider.

ATTACHMENTS:

Third Quarter Financial Reports

1. General Fund

2. Measure U Overview

3. Enterprise Fund
APPROVALS:

Department Head Approval: Approval Date: __4/23/26___
CEQA Determination (Planning): Approval Date: ___N/A_______ The proposed action is / is not exempt from the requirements of the California Environmental Quality Act (CEQA) Administrative Services/Financial Approval: Approval Date: ___4/23/26___ Costs authorized in City Approved Budget: ☐ Yes ☐ No  N/A Account Code (f applicable) ___________________________ City Attorney Approval: Approval Date: __4/29/26_____
City Manager Approval: Approval Date: __4/29/26_____
Agenda Item Number 8
Agenda Item Number 8
City Council Meeting Packet of May 5, 2026

Description
2024-25
Actual
Y-T-D
Actual
3/31/25
2025-26
Adopted
Budget
2025-26
Adjusted
Budget
Y-T-D
Actual
3/31/26
% of
Adjusted
Budget

OPERATING REVENUE
Property Tax 3,642,556 1,923,289 3,639,105 3,734,475 2,013,507 53.9% Real Property Transfer Tax 62,203 44,532 50,000 50,000 35,751 71.5% Sales Taxes 5,015,508 2,742,256 6,130,700 6,067,200 3,469,967 57.2% User Taxes 925,705 628,548 962,050 962,050 637,478 66.3% Transient Occupancy Tax 480,263 287,719 534,500 534,500 293,694 54.9% Franchise Fees 490,118 234,064 530,000 522,000 262,117 50.2% Licenses & Permits 676,253 354,874 1,244,000 1,244,000 638,028 51.3% Fines & Special Assessments 70,935 61,384 77,300 77,300 52,645 68.1% Intergovernmental Revenues 27,724 17,596 20,200 20,200 10,224 50.6% Interest & Rents 166,399 76,787 157,450 157,450 109,136 69.3% Charges for Services 182,375 126,161 162,300 153,065 134,964 88.2% Miscellaneous Revenue 393,335 383,475 110,790 106,790 99,549 93.2% Cost Allocation Plan 1,761,797 1,321,348 1,796,323 1,796,323 1,347,242 75.0% Transfers In 209,622 132,489 275,000 275,000 129,500 47.1% TOTAL REVENUES 14,104,793 8,334,522 15,689,718 15,700,353 9,233,802 58.8% OPERATING EXPENDITURE - By Department
City Council 176,804 120,044 183,214 165,951 117,207 70.6% City Manager 827,312 495,844 581,282 292,508 144,677 49.5% City Attorney 646,785 440,552 643,750 643,750 279,437 43.4% Assistant City Manaer | City Clerk 457,159 343,696 470,818 478,180 366,895 76.7% Administrative Services (Finance) 1,385,796 1,015,428 1,466,539 1,452,124 1,065,643 73.4% Planning 657,815 494,037 701,666 652,812 419,112 64.2%
Building 303,081 199,040 437,909 354,908 213,774 60.2%
Fire & Prevention 1,492,276 906,292 1,247,640 1,247,640 1,217,911 97.6% Police 5,123,538 3,829,047 5,767,329 5,775,329 4,087,891 70.8% Senior Center 2,298,834 19,354 47,650 47,650 16,423 34.5% Public Works 42,620 1,610,292 2,650,318 2,650,318 1,634,072 61.7% Community Center 172,309 112,275 164,202 164,201 88,422 53.9% Ives Pool 212,031 172,122 225,761 218,781 105,098 48.0% Non Departmental 97,126 64,819 146,940 146,940 119,769 81.5% Debt Service Payments 269,979 179,391 150,755 150,755 150,754 100.0% Transfers Out 300,000 - 800,000 800,000 51 0.0%
TOTAL EXPENDITURES 14,463,465 10,002,233 15,685,773 15,241,847 10,027,136 65.8% Net Surplus/(Deficit) (358,672) (1,667,711) 3,945 458,506 (793,334)

GENERAL FUND
JANUARY - MARCH 2026
QUARTER 3 REPORTING
Agenda Item Number 8
Agenda Item Number 8
City Council Meeting Packet of May 5, 2026

Revenue Categories
2024-25
Actual
Y-T-D
Actual
3/31/25
2025-26
Adopted
Budget
2025-26
Adjusted
Budget
Y-T-D
Actual
3/31/26
% of
Adjusted
Budget
3000 - Property Tax Secured / Unsecured 2,650,054 1,427,038 2,626,755 2,679,290 1,485,915 55.5% 3002 - Real Property Transfer Tax 62,203 44,532 50,000 50,000 35,751 71.5% 3004 - Property Tax in Lieu of VLF 992,502 496,251 1,012,350 1,055,185 527,592 50.0% Property Tax 3,704,759 1,967,821 3,689,105 3,784,475 2,049,258 54.1% 3010 - Sales Tax-Bradley Burn 2,248,299 1,331,853 2,212,000 2,188,000 1,243,666 56.8% 3011 - Sales Tax-1/4 cent (T) 763,260 446,884 772,000 755,000 443,081 58.7% 3012 - Sales Tax-1/2 cent (Q) 1,529,446 892,058 1,544,000 1,510,000 874,465 57.9% 3018 - Sales Tax-1/2 cent (U) 370,737 -0 1,500,000 1,510,000 836,830 55.4% 3014 - Sales Tax-Prop 172 103,766 71,461 102,700 104,200 71,925 69.0% Sales Taxes 5,015,508 2,742,256 6,130,700 6,067,200 3,469,967 57.2% 3020 - Transient Occupancy Tax 480,263 287,719 534,500 534,500 293,694 54.9% 3050 - Garbage Franchise 302,261 200,689 330,000 330,000 232,561 70.5% 3051 - PG&E Franchise 121,902 -0 125,000 125,000 -0 0.0% 3052 - Cable TV Franchise 65,955 33,375 75,000 67,000 29,556 44.1% Franchise Fees 490,118 234,064 530,000 522,000 262,117 50.2% 3055 - Vehicle in lieu Tax 11,862 11,862 12,500 12,500 11,502 92.0% 3056 - UUT PG&E 488,518 328,902 494,100 494,100 334,899 67.8% 3057 - UUT Sonoma Clean Power 122,164 86,608 129,150 129,150 84,250 65.2% 3058 - UUT Garbage 98,326 65,285 108,200 108,200 75,652 69.9% 3059 - UUT Cable 71,201 47,349 77,000 77,000 45,552 59.2% 3060 - UUT Misc 132,562 88,167 140,600 140,600 85,294 60.7% 3061 - UUT (AB-1717) 1,072 375 500 500 330 65.9%
User Taxes 925,705 628,548 962,050 962,050 637,478 66.3% 3101 - Business License 139,028 129,890 140,000 140,000 128,779 92.0% 3102 - Business License-Late Fees 4,399 3,817 4,000 4,000 2,261 56.5% 3103 - Building Permits 532,826 221,167 1,100,000 1,100,000 506,988 46.1% Licenses & Permits 676,253 354,874 1,244,000 1,244,000 638,028 51.3% 3105 - Vehicle/ Criminal Code Fines 14,643 10,100 12,500 12,500 11,544 92.4% 3106 - Parking Fines 14,278 9,788 18,000 18,000 13,005 72.2% 3107 - RBS Training Fees 14,200 14,200 14,800 14,800 -0 0.0% 3110 - Business License - DSA 70% $1 5,213 4,712 5,500 5,500 4,867 88.5% 3202 - State Mandated Cost Reimb 22,602 22,584 26,500 26,500 23,229 87.7% Fines & Special Assessments 70,935 61,384 77,300 77,300 52,645 68.1%

GENERAL FUND REVENUES DETAILED
JANUARY - MARCH 2026
QUARTER 3 REPORTING
Agenda Item Number 8
Agenda Item Number 8
City Council Meeting Packet of May 5, 2026

Revenue Categories
2024-25
Actual
Y-T-D
Actual
3/31/25
2025-26
Adopted
Budget
2025-26
Adjusted
Budget
Y-T-D
Actual
3/31/26
% of
Adjusted
Budget

GENERAL FUND REVENUES DETAILED
JANUARY - MARCH 2026
QUARTER 3 REPORTING
3203 - POST Reimb 32 -0 -0 -0 -0 0.0%
3204 - Casino Mitigation 20,192 10,096 20,200 20,200 10,224 50.6% 3206 - County Grant 7,500 7,500 -0 -0 -0 0.0%
3207 - State Grant -0 -0 -0 -0 -0 0.0%
3209 - Federal Grant -0 -0 -0 -0 -0 0.0%
Intergovernmental Revenues 27,724 17,596 20,200 20,200 10,224 50.6% 3300 - Interest Income 118,282 35,277 100,000 100,000 69,629 69.6% 3308 - Interest Income- FMV -18,421 -0 -0 -0 -0 0.0%
3301 - Cell Tower Lease Rental 37,540 31,152 44,300 44,300 32,086 72.4% 3302 - City Property Rental - Little League 4,396 3,448 3,150 3,150 2,783 88.3% 3304 - City Property Rental - Parking Space 430 410 500 500 410 82.0% 3305 - City Property Rental - Palm Ave 3,500 2,500 2,500 2,500 2,250 90.0% 3390 - Lease Interest Income 9,422 -0 -0 0.0%
3401 - Plaza and Special Event Fees 11,250 4,000 7,000 7,000 1,977 28.2% Interest & Rents 166,399 76,787 157,450 157,450 109,136 69.3% 3404 - Credit Card Transaction Fee 1,934 1,934 2,000 2,000 1,177 58.9% 3405 - Finance Fee 6,486 4,911 7,000 7,000 4,953 70.8%
3425 - Fire Dept Fees 68,125 38,400 40,000 40,000 46,313 115.8% 3426 - Planning Fees 35,721 27,717 38,000 38,000 33,853 89.1% 3441 - Encroachment Permits Fee 26,540 20,383 30,000 24,000 16,558 69.0% 3442 - Grading Permit Fee 1,130 1,130 2,000 1,200 71 5.9% 3445 - Public Works Services 2,053 1,535 7,500 2,000 1,756 87.8% 3502 - Police Services 25,494 17,775 18,000 25,500 21,009 82.4% 3504 - Impounded Vehicle Release Fee 2,003 1,423 1,800 1,800 1,712 95.1% 3505 - Police Reports Copy Fee 1,545 1,125 2,000 2,000 740 37.0% 3506 - Police False Alarms Fee 60 60 -0 -0 -0 0.0%
3507 - Police OT Reimbursement 2,964 2,964 6,000 1,565 1,563 99.9% 3615 - Solar Payback 8,320 6,804 8,000 8,000 5,259 65.7% Charges for Services 182,375 126,161 162,300 153,065 134,964 88.2% 3801 - Sales of Surplus Equipment 870 870 -0 -0 -0 0.0% 3804 - Insurance Claims 39,973 9,247 500 500 25,098 5019.5% 3805 - Miscellaneous Income 830 653 500 3,000 2,953 98.4% 3806 - Donations & Contributions 253,000 300,500 500 2,000 1,500 75.0% 3807 - Rebates 17,332 11,734 15,300 15,300 13,681 89.4% 3810 - Pool Expense Reimbursement 81,331 60,471 93,990 85,990 56,318 65.5% Miscellaneous Revenue 393,335 383,475 110,790 106,790 99,549 93.2% 3998 - Cost Allocation Plan 1,761,797 1,321,348 1,796,323 1,796,323 1,347,242 75.0% 3999 - Transfers In 209,622 132,489 275,000 275,000 129,500 47.1% Total Revenue 14,104,793 8,334,522 15,689,718 15,700,353 9,233,802 58.8% Agenda Item Number 8
Agenda Item Number 8
City Council Meeting Packet of May 5, 2026

FY25-26
Measure U Overview
FY24-25 Actual
Revenue
$370,737
FY24-25 Actual
Revenue
$370,737
FY25-26 Projected
Revenue
$1,510,000
Citywide Pavement
Digouts & Repairs
$200,000
Citywide Pavement
Improvements
Allocated $350,000
$800,000
40% Policy
$148,295
40% Policy
$604,000
Police Station EOC
$150,000
Corp Yard Fuel Filing
Station Upgrade
$85,000
Unallocated
$15,000
Revenue FY25-26 Adopted
Budget
$800,000
Citywide Pavement
Digouts & Repairs
$120,000
Citywide Pavement
Improvements
$35,000
Corp Yard Fuel Filing
Station Upgrade
$85,000
Police Station EOC
$50,000
Estimated Spending
by June 30, 2026
$290,000
Note: From inception through the projected FY 2025-26 revenue, Measure U collections are estimated at $1,880,737. Under the 40% policy guideline, the allowable amount would be $752,295.

The currently budgeted allocation is $800,000, which exceeds the policy amount by $47,705, or approximately 3.5% above the policy threshold.

Total amount carryover
fund into FY26-27 to
complete projects
$510,000
Total amount carryover
fund into FY26-27 to
complete projects
$510,000
Agenda Item Number 8
Agenda Item Number 8
City Council Meeting Packet of May 5, 2026

Description
2024-25
Actual
Y-T-D
Actual
3/31/25
2025-26
Adopted
Budget
2025-26
Adjusted
Budget
Y-T-D
Actual
3/31/26
% of
Adjusted
Budget

OPERATING REVENUE
Usage Charges - Residential 1,782,411 1,311,446 1,764,321 1,764,321 1,208,485 68.5% Usage Charges - Commerical 1,429,003 1,060,010 1,510,087 1,510,087 948,292 62.8% Usage Charges - Water Tower 45,047 33,964 54,500 54,500 37,764 69.3% Interest Income 45,171 46,642 75,000 75,000 18,513 24.7% New Service Fee 10,200 7,800 10,000 9,600 6,750 70.3%
Penalties 22,067 18,329 20,000 21,375 17,607 82.4%
Miscellaneous Income 45,965 874 44,000 44,600 800 1.8%
TOTAL REVENUE 3,379,864 2,479,065 3,477,908 3,479,483 2,238,212 64.3%

OPERATING EXPENDITURE
Salaries & Wages 359,327 268,227 370,268 384,513 296,297 77.1% Benefits 282,390 158,366 244,830 233,946 206,249 88.2%
Contracted Services 159,241 101,997 340,750 319,470 225,005 70.4% Services & Supplies 195,954 140,966 244,000 219,990 112,674 51.2% Conference & Training Expense 4,439 4,197 5,000 5,000 2,547 50.9% Utilities 235,947 192,460 317,350 317,350 188,397 59.4% Allocated Insurance 81,510 59,646 104,755 104,755 78,567 75.0% Capital Outlay - - 267,500 160,500 11,988 7.5%
Debt Service Payments 461,365 277,508 252,657 252,657 245,349 97.1% Cost Allocation Plan 852,863 639,647 845,358 845,358 634,019 75.0% Transfers Out 50,230 25,322 115,000 115,000 50,075 43.5% TOTAL EXPENDITURES 2,683,266 1,868,336 3,107,468 2,958,540 2,051,165 69.3% Net Surplus/(Deficit) 696,597 610,729 370,440 520,943 187,046

WATER OPERATING FUND
JANUARY - MARCH 2026
QUARTER 3 REPORTING
Agenda Item Number 8
Agenda Item Number 8
City Council Meeting Packet of May 5, 2026

Description
2024-25
Actual
Y-T-D
Actual
3/31/25
2025-26
Adopted
Budget
2025-26
Adjusted
Budget
Y-T-D
Actual
3/31/26
% of
Adjusted
Budget
Salaries & Wages
4010 - Salaries - Full Time 318,931 234,079 345,813 345,813 266,991 77.2% 4012 - Overtime 21,733 16,257 24,500 24,500 18,848 76.9% 4013 - Standby 14,914 10,762 14,200 14,200 10,459 73.7% 4090 - Vacancy Savings - - (14,245) - - 0.0%
4023 - One Time Payment 7,650 7,650 - - - 0.0%
4990 - PW/Staff Time Project Reimb (3,900) (520) - - - 0.0% Total Salaries & Wages 359,327 268,227 370,268 384,513 296,297 77.1% Benefits
4102 - Uniform Allowance 2,550 2,550 - 3,200 3,203 100.1% 4105 - Medicare & Fica 5,318 3,946 5,014 5,014 4,355 86.9% 4110 - CalPERS Employer Rate 106,282 22,316 33,983 33,983 26,293 77.4% 4111 - CalPERS UAL Cost 60,746 45,679 73,475 71,025 71,021 100.0% 4130 - Health Insurance 94,970 74,026 115,634 104,000 90,194 86.7% 4150 - Dental Insurance 9,740 7,626 11,067 11,067 8,627 78.0% 4151 - Vision Insurance 1,026 807 1,088 1,088 850 78.1% 4181 - Long Term Disability Insurance 999 830 2,982 2,982 864 29.0% 4182 - Short Term Disability Insurance 414 315 497 497 546 109.8% 4183 - EAP (Employee Asst Prog) 103 80 280 280 100 35.8% 4184 - Life Insurance 242 191 810 810 197 24.3%
Total Benefits 282,390 158,366 244,830 233,946 206,249 88.2% Contracted Services
4210 - Professional Contract Services 140,875 89,746 322,750 295,470 206,215 69.8% 4211 - Banking Fees 18,366 12,250 18,000 24,000 18,789 78.3% Total Contracted Services 159,241 101,997 340,750 319,470 225,005 70.4% Services & Supplies
4301 - Bad Debt Expense 2,110 1,667 5,000 2,500 486 19.4% 4310 - Office Supplies - - 1,500 1,500 - 0.0%
4330 - Misc Supplies & Services 171,106 125,490 203,600 182,090 95,417 52.4% 4332 - Janitorial & Safety Supplies - - 1,200 1,200 - 0.0% 4361 - Meter Replacement Program 5,992 1,324 7,500 7,500 9,482 126.4% 4365 - Fire Hydrant Replacement Program 13,203 8,942 10,000 10,000 - 0.0% 4366 - Backflow Prevention Program 222 222 5,200 5,200 5,679 109.2% 4380 - Vehicle Maintenance 3,321 3,321 10,000 10,000 1,611 16.1% Total Services & Supplies 195,954 140,966 244,000 219,990 112,674 51.2% Conference & Training Expense
4510 - Conference & Training 3,051 2,936 3,000 3,000 2,319 77.3% 4515 - Meetings & Travel 1,388 1,262 2,000 2,000 228 11.4% Total Conference & Training Expense 4,439 4,197 5,000 5,000 2,547 50.9% Utilities
4710 - Utilities - Gas & Electric 230,402 188,452 310,000 310,000 184,969 59.7% 4750 - Telecommunications 5,544 4,007 7,350 7,350 3,428 46.6% Total Utilities 235,947 192,460 317,350 317,350 188,397 59.4% Detail - Water Operation Fund - 500
January - March 2026
Quarter 3 Expenditures
Agenda Item Number 8
Agenda Item Number 8
City Council Meeting Packet of May 5, 2026

Description
2024-25
Actual
Y-T-D
Actual
3/31/25
2025-26
Adopted
Budget
2025-26
Adjusted
Budget
Y-T-D
Actual
3/31/26
% of
Adjusted
Budget
Detail - Water Operation Fund - 500
January - March 2026
Quarter 3 Expenditures
Allocated Insurance | Others
4996 - Allocated Liability Insurance 53,266 38,868 71,485 71,485 53,613 75.0% 4997 - Allocated Wrkrs Comp Insurance 28,244 20,778 33,270 33,270 24,954 75.0% 4998 - Cost Allocation Plan (CAP) 852,863 639,647 845,358 845,358 634,019 75.0% 4999 - Transfers Out 50,230 25,322 115,000 115,000 50,075 43.5% 5100 - Capital Outlay - - 267,500 160,500 11,988 7.5%
Total Allocated Insurance | Others 984,603 724,615 1,332,613 1,225,613 774,648 63.2% Debt Service
6100 - Principal 409,137 233,791 198,633 198,633 213,340 107.4% 6200 - Interest 52,229 43,717 54,024 54,024 32,008 59.2% Total Debt Service 461,365 277,508 252,657 252,657 245,349 97.1% TOTAL 2,683,266 1,868,336 3,107,468 2,958,539 2,051,165 69.3% Agenda Item Number 8
Agenda Item Number 8
City Council Meeting Packet of May 5, 2026

Description
2024-25
Actual
Y-T-D
Actual
3/31/25
2025-26
Adopted
Budget
2025-26
Adjusted
Budget
Y-T-D
Actual
3/31/26
% of
Adjusted
Budget

OPERATING REVENUE
Service Charge - Residential 2,378,207 1,782,533 2,535,849 2,535,849 1,675,202 66.1% Service Charge - Commercial 2,295,499 1,729,189 2,639,354 2,639,354 1,577,863 59.8% Interest Income 11,305 11,880 20,000 20,000 6,697 33.5% Penalties 20,310 16,587 20,000 20,000 17,668 88.3%
Transfers In -0 -0 -0 -0 0.0%
TOTAL REVENUE 4,705,321 3,540,189 5,215,203 5,215,203 3,277,430 62.8%

OPERATING EXPENDITURE
Salaries & Wages 310,272 227,210 325,142 337,382 259,641 77.0% Benefits 245,639 136,151 219,286 206,320 181,196 87.8%
Contracted Services (18,805) 18,658 129,550 132,400 45,208 34.1% Subregional Cost 2,118,436 1,412,291 1,953,889 1,953,889 1,302,593 66.7% Services & Supplies 79,268 27,736 107,000 99,000 31,164 31.5% Conference & Training Expense 3,175 2,458 8,000 8,000 2,881 36.0% Utilities 68,698 50,500 65,198 64,698 54,855 84.8%
Allocated Insurance 57,065 41,802 68,905 68,905 51,678 75.0% Debt Service Payments 240,038 150,645 119,888 119,888 119,888 100.0% Cost Allocation Plan 908,934 681,701 950,965 950,965 713,224 75.0% Capital Outlay - - 68,000 148,000 - 0.0%
Transfers Out 32,551 32,402 187,000 187,000 51 0.0%
TOTAL EXPENDITURES 4,045,271 2,781,554 4,202,823 4,276,449 2,762,378 64.6% Net Surplus/(Deficit) 660,050 758,635 1,012,380 938,754 515,052

WASTEWATER OPERATING FUND
JANUARY - MARCH 2026
QUARTER 3 REPORTING
Agenda Item Number 8
Agenda Item Number 8
City Council Meeting Packet of May 5, 2026

Description
2024-25
Actual
Y-T-D
Actual
3/31/25
2025-26
Adopted
Budget
2025-26
Adjusted
Budget
Y-T-D
Actual
3/31/26
% of
Adjusted
Budget

OPERATING EXPENDITURE
Salaries & Wages
4010 - Salaries - Full Time 271,638 198,846 306,282 306,282 236,111 77.1% 4012 - Overtime 19,884 13,153 19,600 19,600 13,872 70.8% 4013 - Standby 11,850 8,311 11,500 11,500 9,659 84.0%
4090 - Vacancy Savings - - (12,240) - - 0.0%
4023 - One Time Payment 6,900 6,900 - - - 0.0%
Total Salaries & Wages 310,272 227,210 325,142 337,382 259,641 77.0% Benefits
4102 - Uniform Allowance 2,300 2,300 2,300 3,000 2,993 99.8% 4105 - Medicare & Fica 4,544 3,338 4,441 4,441 3,819 86.0% 4110 - CalPERS Employer Rate 93,712 19,451 30,519 30,519 23,593 77.3% 4111 - CalPERS Employer Rate-Unfunded 53,360 40,124 63,200 60,970 60,971 100.0% 4130 - Health Insurance 81,089 62,645 103,436 92,000 79,945 86.9% 4150 - Dental Insurance 8,315 6,453 9,934 9,934 7,672 77.2% 4151 - Vision Insurance 875 682 977 977 756 77.3%
4181 - Long Term Disability Insurance 810 673 2,982 2,982 728 24.4% 4182 - Short Term Disability Insurance 340 255 407 407 460 113.0% 4183 - EAP (Employee Asst Prog) 88 68 280 280 88 31.4%
4184 - Life Insurance 207 161 810 810 173 21.3%
Total Benefits 245,639 136,151 219,286 206,320 181,196 87.8% Contracted Services
4210 - Professional Contract Services 12,829 6,408 110,250 110,250 26,419 24.0% 4210 - Subregional O&M 2,118,436 1,412,291 1,953,889 1,953,889 1,302,593 66.7% 4211 - Banking Fees 18,366 12,250 19,300 22,150 18,789 84.8% 4227 - Private Swr Lateral Grant Program (50,000) - - - 0.0% Total Contracted Services 2,099,631 1,430,949 2,083,439 2,086,289 1,347,801 64.6% Bad Debt Expense
4301 - Bad Debt Expense 2,486 1,960 5,000 2,500 675 27.0% Total Bad Debt Expense 2,486 1,960 5,000 2,500 675 27.0% Services & Supplies
4330 - Misc Supplies & Services 71,960 20,955 89,500 89,500 25,798 28.8% 4332 - Janitorial & Safety Supplies - 1,500 - 0.0%
Total Services & Supplies 71,960 20,955 91,000 89,500 25,798 28.8% Special Programs
4360 - Conservation Rebate Program - - 1,000 - - 0.0%
Total Special Programs - - 1,000 - - 0.0%
Vehicle Expense
4380 - Vehicle Maintenance 4,822 4,822 10,000 7,000 4,692 67.0% Total Vehicle Expense 4,822 4,822 10,000 7,000 4,692 67.0% Conference & Training Expense
4510 - Conference & Training 915 809 5,000 5,000 2,762 55.2% 4515 - Meetings & Travel 2,260 1,649 3,000 3,000 119 4.0% Total Conference & Training Expense 3,175 2,458 8,000 8,000 2,881 36.0% Detail - Wastewater Operation Fund - 510
JANUARY - MARCH 2026
Quarter 3 Expenditures
Agenda Item Number 8
Agenda Item Number 8
City Council Meeting Packet of May 5, 2026

Description
2024-25
Actual
Y-T-D
Actual
3/31/25
2025-26
Adopted
Budget
2025-26
Adjusted
Budget
Y-T-D
Actual
3/31/26
% of
Adjusted
Budget
Detail - Wastewater Operation Fund - 510
JANUARY - MARCH 2026
Quarter 3 Expenditures
Utilities
4710 - Utilities - Gas & Electric 64,505 47,817 60,000 60,000 52,306 87.2% 4711 - Utilities - City Bill 3,080 1,879 3,198 3,198 1,607 50.3% Total Utilities 67,585 49,696 63,198 63,198 53,914 85.3% Telecommunications
4750 - Telecommunications 1,113 804 2,000 1,500 941 62.7% Total Telecommunications 1,113 804 2,000 1,500 941 62.7% Allocated Insurance
4996 - Allocated Liability Insurance 30,012 21,900 40,285 40,285 30,213 75.0% 4997 - Allocated Wrkrs Comp Insurance 27,053 19,902 28,620 28,620 21,465 75.0% Total Allocated Insurance 57,065 41,802 68,905 68,905 51,678 75.0% G & A Allocation
4998 - Cost Allocation Plan (CAP) 908,934 681,701 950,965 950,965 713,224 75.0% Total G & A Allocation 908,934 681,701 950,965 950,965 713,224 75.0% Transfers Out
4999 - Transfers Out 32,551 32,402 187,000 187,000 51 0.0% Total Transfers Out 32,551 32,402 187,000 187,000 51 0.0% Capital Outlay
5100 - Capital Outlay - - 68,000 148,000 - 0.0%
Total Capital Outlay - - 68,000 148,000 - 0.0%
Debt Service Payments
6100 - Principal 214,370 125,529 97,127 97,127 97,127 100.0% 6200 - Interest 25,668 25,116 22,761 22,761 22,761 100.0% Total Debt Service Payments 240,038 150,645 119,888 119,888 119,888 100.0% TOTAL 4,045,271 2,781,554 4,202,823 4,276,447 2,762,378 64.6% Agenda Item Number 8
Agenda Item Number 8
City Council Meeting Packet of May 5, 2026