City Council
Budget Workshop
Understanding the
City of Simi Valley Budget
November 11, 2025
The Building Blocks of the Budget:
How a City Budget Works
The Building Blocks of the Budget:
How a City Budget Works
City funding comes primarily from three sources:
1. Locally-generated revenues, like Property and Sales Tax
2. Special Revenues, like Federal / State taxes and grants.
3. Enterprise Revenues, that come from fees collected for specific services (Utilities, Sanitation, and Transportation)
The Building Blocks of the Budget:
How a City Budget Works
General
Fund
City
Administration
City Attorney
Administrative
Services
Environmental
Services
Public Works
Police
Department
Emergency
Services
Non-
Departmental
Miscellane
ous Funds
Infrastructure
Investment
Fund
Retirement
Obligation
Fund
Contingency
Fund
Economic
Recovery
Fund
COVID-19
Recovery
Fund
Internal
Service
Funds
Liability
Insurance Fund
Workers’
Compensation
Insurance Fund
GIS Operating
Fund
Financial
Information
System
Operating Fund
Special
Revenue Funds
CDBG
PEG
Gasoline Tax
Fund
National Opioid
Abatement Trust II
National Opioid
Settlement –
Distributor
National Opioid
Settlement -
Janssen
Bicycle Lanes
Fund
Local
Transportation
Fund
Library Fund
New Dwelling
Fees Fund
Development
Agreement Fund
Traffic Impact
Fees Fund
Special Revenue
Funds Cont.
Forfeited Assets
Fund – DOG
Forfeited Assets Fund
– State & Local
Forfeited Assets Fund
– Treasury
Supplemental Law
Enforcement
Law Enforcement
Grants Fund
Simi Valley Cultural
Arts Center Prog Op
Council on Aging
Retiree Benefits Fund
Disaster Fund
Landscape
Enterprise
Funds
Transit Funds
Sanitation
Funds
Waterworks
Funds
Former CDA
& Housing
Community
Dev’t
Successor
Agency Fund
Housing
Successor
Agency Fund
Local Housing
Fund
CALHOME
Program Fund
Home Program
Fund
Local Early
Action
Planning
Permanent
Local Housing
Allocation
Capital
Funds
Computer
Equip. Repl
Fund
Vehicle
Replacement
Fund
Building
Improvement
Fund
Information
System Repl
Fund
Police Dept.
Capital Projects
City
Telephones
Capital Project
LED
Streetlights
Citywide Radio
Fund
v
The Building Blocks of the Budget:
How a City Budget Works
The Building Blocks of the Budget:
City Budget FY 2025-26
FY 2025-26 Total Expenditures – By Department
The Building Blocks of the Budget:
City Budget FY 2025-26
The Building Blocks of the Budget:
General Fund
The Building Blocks of the Budget:
City Budget FY 2025-26
The Building Blocks of the Budget:
How Your General Fund Dollar is Spent?
Public Works,
22%
City
Attorney,
2%
Police
Department,48%
City
Administration,
8%
Administrative
Services, 9%
Environmental
Services, 11%
The Building Blocks of the Budget:
Cost of City Services Per Resident Each Day
Police
$0.89
/ day
Public
Works
$0.43
/ day
Env.
Services
$0.21
/ day
Admin.
Services
$0.16
/ day
City
Admin.
$0.17
/ day
City
Attorney
$0.04
/ day
Supplemental Budget Request
A supplemental budget request is a request for
additional budget resources necessitated by;
• Unexpected Costs
• Project Scope Changes
• New Mandates
• Price Increases
• Grant Awards/Donations
Year End Surplus
Surplus = Actual Revenue - Actual Expenditure
Budget to Actual does not determine the year end surplus
Revenues
60,000,000
65,000,000
70,000,000
75,000,000
80,000,000
85,000,000
90,000,000
95,000,000
100,000,000
105,000,000
FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25
Budget Actual
Revenues
60,000,000
65,000,000
70,000,000
75,000,000
80,000,000
85,000,000
90,000,000
95,000,000
100,000,000
105,000,000
FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25
Actual Revenue Revised Revenue Budgeted Revenue
General Fund Interest
$ 0.18 M$ 0.24 M$ 0.3 M$ 0.42 M
$ 0.8 M$ 0.85 M
$ 0.61 M$ 0.67 M
$ 1.87 M
$ 3.1 M
$ 3.78 M
$ 0.0 M
$ 0.5 M
$ 1.0 M
$ 1.5 M
$ 2.0 M
$ 2.5 M
$ 3.0 M
$ 3.5 M
$ 4.0 M
20152016201720182019202020212022202320242025
Expenditures
60,000,000
65,000,000
70,000,000
75,000,000
80,000,000
85,000,000
90,000,000
95,000,000
100,000,000
FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25
Budget Actual
Revenues and Expenditures
60,000,000
65,000,000
70,000,000
75,000,000
80,000,000
85,000,000
90,000,000
95,000,000
100,000,000
FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25
Revenue Expenditure
Year End Surpluses
(1,384,047)
1,598,219
3,478,587
15,253
8,053,103
10,333,888
9,543,410
7,134,886
11,061,083
(2,000,000)
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25
Conservative Budgeting
A Financial Plan Built on
Modest Income Assumptions and
Generous Expense Estimates
Conservative Budgeting
• Budgeting for Expenditures and Forecasting for Revenues. • Budgeting is setting a plan that sets spending limits and allocates resources.
• Forecasting is using current and historical trends to estimate what will actually happen in the future.
Conservative Budgeting
• Expenses
• Salaries & Benefits
• Budgeted by Budget Team.
• Fully budget for all positions, including vacancies.
• Includes an offset in the Salary Savings line item
• Materials & Supplies / Services
• Each department budgets their own.
• Held to the previous years base budget.
• Budget increases need to be justified with a Policy Item Form.
Conservative Budgeting
• Revenues
• Taxes & Franchises, Interest, Leases
• Budgeted by the Budget Team.
• The City’s Major Revenue Streams.
• Property / Sales / T.O.T. / Franchises / Business /Documentary Transfer
• Permits, Fines, Fees, Grants, and Service Charges
• Budgeted by Each Department
Budget Presentation
Closing Comments and Questions