FY 2025-26
Proposed Budget
Presentation to Budget Subcommittee
Karen Chang, Director of Finance
May 20, 2025
AGENDA
1 FY 2024-25 Financial Update
(Year End Update)
2 FY 2025-26 Proposed Budget
3 5-Year Projection
22 4 Q&A
GF Available Fund Balance Update
FY 2024-25 Financial Update 1
3 Mid-Year Projected
FY 2024-25
Year End
Updated Projected
FY 2024-25
Year End
Year Start Available Fund
Balance $34.8 $34.8
Adjustments to Fund Balance¹ 7.8 7.8
Revenues (inflows) 145.3 144.1
Expenditures (159.9) (157.6)
Change in Available Fund
Balance (6.9) (5.8)
Projected Year-End Fund
Balance $27.9 $29.0
1. Adjustment to fund balance is the release of encumbered funds back into the available reserve. 2025-26 Proposed
Budget
Citywide Impacts
FY 2025-26 Proposed Budget 2
Citywide Expense Assumptions
Salaries • 3% COLA
Healthcare • 4% Blue Shield, Flat Others
UAL • $3.7 million increase
Utilities • $2.2 million increase
General Inflation • 2.7%
FY 2025-26 Proposed Budget 2
Fiscal
Challenge
• Revenues are not keeping
up with Expenditure
growth
FY 2025-26 Proposed Budget 2
2025-26 Proposed
Budget
General Fund
FY 2025-26 Proposed Budget Summary
8 FY 2025-26 Proposed Budget 2
FY2025-26
Proposed Budget
Revenues $140.5M
Expenses 152.7M
Net Surplus/(Deficit) ($12.2M)
FY 2025-26 General Fund Proposed Budget - Revenues
▪ FY 2025-26 Budgeted Revenues = $140.5 million
9 REVENUES FY 2023-24 FY2024-25 FY2025-26
(in millions) Actuals as of
6/30/2024
Adopted
Budget
Adjusted
Budget
Proposed
Property Tax $56.4 $50.2 $57.1 $6.7M → $56.9M
Sales Tax 23.2 23.2 21.2 (2.0M) → 21.2M
TOT 14.9 14.5 14.8 0.8M → 15.3M
Other Taxes 7.1 6.7 7.7 2.3M → 9.0M
Franchise Fees 5.3 6.2 6.2 0.0M → 6.2M
Sub-Total $106.9 $100.8 $107.0
FY 2025-26 Proposed Budget 2
FY 2025-26 General Fund Adjusted Budget - Revenues
▪ FY 2025-26 Budgeted Revenues = $140.5 million
1 0
REVENUES FY 2023-
24 FY2024-25 FY2025-26
(in millions) Actuals as
of
6/30/2024
Adopted
Budget
Adjusted
Budget
Proposed
License and Permits $14.0 $13.2 $13.6 -$2.4M → $10.7M
Intergovernmental 6.5 2.7 4.9 $0.3M → 2.9M
Service Charges 11.0 8.5 8.7 $0.0M → 8.5M
All Other Revenues* 9.9 7.6 8.9 $0.6M → 8.2M
Transfers In 6.3 4.7 2.3 -$3.2M → 1.5M
PO/CIP Rollover 0.0 0.0 10.5 $0.0M → 0.0M
TOTAL REVENUES $154.6 $137.4 $156.0 $3.1M → $140.5M
FY 2025-26 Proposed Budget 2
* Includes Fines & Forfeitures, Inter-Fund Admin Charge, Use of Money & Property, and Other Revenues.
FY 2025-26 General Fund Adjusted Budget - Expenditures
▪ FY 2025-26 Budgeted Expenditures = $152.7 million
11 Expenditures FY
2023-24
FY2024-25 FY2025-26
(in millions) Actuals as
of
6/30/2024
Adopted
Budget
Adjusted
Budget
Proposed
Salary and Benefits $106.1 $113.4 $114.4 $3.6M → $117.0M* Supplies and Services 23.0 22.1 34.3 2.9M → 25.0M
Capital Outlay 0.2 0.0 0.7 0.0M → 0.0M
Interdepartmental Charges 10.2 9.5 9.5 0.7M → 10.2M
Transfers - Operation 0.5 0.5 0.5 0.0M → 0.5M
Transfers - Capital Transfers 0.7 0.0 3.4 0.0M → 0.0M
TOTAL EXPENDITURE $140.8 $145.4 $162.8 $7.2M → $152.7M
FY 2025-26 Proposed Budget 2
* Includes 7% vacancy savings, $8.0M
Department Requests
FY 2025-26 GF Proposed Dept Budget – Expenditures
13 EXPENDITURES FY2023-24 FY2024-25 FY2025-26
(in millions) Actuals as of
6/30/2024
Adopted
Budget
Adjusted
Budget
Proposed
Budget
% Change from
FY2024-25
Adopted
City Council $0.3 $0.3 $0.3 $0.3 -14.5%
City Clerk 1.0 1.3 1.4 1.4 6.6%
City Treasurer 0.2 0.2 0.2 0.2 26.7%
City Attorney 1.7 1.5 2.3 1.5 4.0%
City Manager 3.4 3.9 4.3 4.8 24.3%
Finance 3.3 3.9 4.2 4.3 11.1%
Human Resources 2.6 2.7 3.0 3.0 12.5%
Econ & Comm Develop 11.1 8.9 12.0 9.6 8.1%
Fire 36.7 36.4 38.1 40.2 10.4%
Police 37.1 38.2 38.4 42.3 10.8%
FY 2025-26 Proposed Budget 2
FY 2025-26 GF Proposed Dept Budget – Supplies & Services 14 EXPENDITURES FY2023-24 FY2024-25 FY2025-26
(in millions) Actuals as of
6/30/2024
Adopted
Budget
Adjusted
Budget
Proposed
Budget
% Change from
FY2024-25
Adopted
Public Works $10.1 $11.1 $14.4 $12.6 13.4%
Library 7.7 8.9 9.1 9.3 5.5%
Parks and Recreation 22.9 26.3 29.6 29.1 10.4%
CIP 0.7 0.0 3.4 0.0 0.0%
Non-Dept Expense 2.0 1.9 2.2 1.9 0.0%
Salary Savings 0.0 0.0 0.0 -8.0 0.0%
TOTAL EXPENDITURES $140.8 $145.4 $162.8 $152.7 5.0%
Information Technology* 4.2 4.3 4.6 4.7 10.2%
FY 2025-26 Proposed Budget 2
*Non-General Fund: budgeted as internal service fund in Fund 785 GF – City Attorney
➢Expense – Services & Supplies $65,000
– Contract Increase $65,000
Net ($65,000)
15 FY 2025-26 Proposed Budget 2
GF – City Manager’s Office
➢Expense – Services & Supplies $300,000
– Abandoned/Derelict Vessel $200,000
Removal/Destruction
– Biennial Community Survey $100,000
➢Expense – Personnel $0
– Upgrade position from AAI to AAII $7,576*
Net ($300,000)
*Salary savings will cover the cost in the first year.
16 FY 2025-26 Proposed Budget 2
GF – Economic & Community Development
➢Revenue ($2,966,152)
– Building Permit Fees ($3,316,152)
– Planning Fees 350,000
17 FY 2025-26 Proposed Budget 2
GF – Economic & Community Development
➢Expense – Services & Supplies $58,172
– Construction Coordination
Committee $75,000
– TDM & Trip Cap Monitoring
and Compliance 40,000
– Retail Strategies for ECR &
Commercial Centers 30,000
– Building Permit Plan Check (136,828)
– JP Morgan Investment Conference 50,000
18 FY 2025-26 Proposed Budget 2
GF – Economic & Community Development
➢Expense – Personnel ($91,520)
– Switch PT Hourly position
to a Contract model-Promotores ($91,520)
Net ($2,932,804)
19 FY 2025-26 Proposed Budget 2
GF – Finance
➢Expense – Services & Supplies $20,000
– Property Tax Consultant $20,000
Net ($20,000)
20 FY 2025-26 Proposed Budget 2
GF – Fire
$410,000
$360,000
(350,000)
➢Revenue
– Fire Permits
– Ambulance Transport
– Program Reimbursement
for Mutual Aid 400,000
21 FY 2025-26 Proposed Budget 2
GF – Fire
$550,098
$400,000
41,287
58,811
➢Expense – Services & Supplies
– Plan Review Contract Services
– Replace Aging Vehicle
Extrication Equipment
– Equipment & Supplies
– Equipment & Lodging for Mutual Aid 50,000
22 FY 2025-26 Proposed Budget 2
GF – Fire
$500,000
$11,555*
➢Expense – Personnel
– Reclass Hourly Safety Inspector
to FT Position
– Overtime Mutual Aid 500,000
Net ($640,098)
*Salary savings will cover the cost in the first year.
23 FY 2025-26 Proposed Budget 2
GF – Human Resources
➢Expense – Services & Supplies $100,000
– Contract for HR Investigation
& Compensation $50,000
– Recruitment Costs 50,000
➢Expense – Personnel $7,200
– Annual Hourly Summer Interns $7,200
Net ($107,200)
24 FY 2025-26 Proposed Budget 2
GF – Library
➢Revenue $232,172
– ESL Grant $132,822
– ACES Grant 99,350
25 FY 2025-26 Proposed Budget 2
GF – Library
➢Expense – Services & Supplies $44,754
– PLAN Network Service Increases $10,000
– Youth Library Program Support 5,000
– Children’s Books 5,000
– ESL Grant Expenses 24,754
➢Expense – Personnel $0
– Reclass Hourly Library Page
to Library Assistant $42,271*
Net $187,418
*Salary savings will cover the cost in the first year. 26 FY 2025-26 Proposed Budget 2
GF – Parks and Recreation
➢Revenue $140,822
– Aquatics Program $163,000
– Program Increases 600,000
– ELOP Program1(622,178)
27 FY 2025-26 Proposed Budget 2
1. The annual Expanded Learning Opportunities Program (ELOP) revenue, has been removed from the current budget. This item will be presented separately to City Council for consideration, and is expected to be significantly higher. Expected revenues will be adjusted at that time.
GF – Parks and Recreation
➢Expense – Services & Supplies $229,249
– Pool Opening Supplies & Services1 $192,149
– Building Maintenance 14,500
– Vehicular Gates & Rollup
Door Maintenance 20,000
– Caltrans Plaza Airspace Lease 2,600
➢Expense – Personnel $581,086
– Aquatics Positions1 519,404
– Senior Program 74,244
– Parks Program (12,562)
Net ($669,513)
28 FY 2025-26 Proposed Budget 2
1. Expenses are for a half year of operations at the new pool.
GF – Police
➢Revenue ($23,408)
– Dispatch Services for Other Cities $22,722
– Alarm Registration Fee and Fines 70,500
– County Task Force Program Ended (114,630)
– OTS Grant (2,000)
29 FY 2025-26 Proposed Budget 2
GF – Police
➢Expense – Services & Supplies $60,000
– Increased Recruitment Support $60,000
➢Expense – Personnel $157,630
– Crisis Intervention Specialist $227,630*
Net ($241,038)
*This position is proposed to be funded with $70,000 in Opioid Settlement funds for FY2025-26. 30 FY 2025-26 Proposed Budget 2
GF – Public Works
➢Revenue $194,000
– Traffic Signal Maintenance Fee ($275,000)
– Grading and Other PW Permits 469,000
➢Expense – Services & Supplies $20,000
– Thermoplastic Machine $20,000
➢Expense – Personnel1($25,979)
– Upgrade MAII to Program Manager $1,373
– Upgrade MAI to MAII (27,352)
Net $148,021
31 FY 2025-26 Proposed Budget 2
1. Additional adjustments for these positions in Non-GF, additional adjustments to funding source of some PW positions pending.
GF – IT
➢Revenue $100,000
– Cellular/Antennae Rental Revenue $100,000
Net $100,000
32 FY 2025-26 Proposed Budget 2
Non-GF
➢Revenue $5,759,695
– ECD – General Plan
Maintenance Fee $2,500,000
– ECD – Commercial
Linkage Impact Fee 1,500,000
– ECD – Housing Trust Fund 17,700
– PW – Sewer Operational
Revenue 1,741,995
33 FY 2025-26 Proposed Budget 2
Non-GF
➢Expense – Services & Supplies $2,266,500
– Parks & Rec – Sculpture for
OP IIC Location (Art In Lieu) $75,000
– PW – Anaerobic Digestor (Sewer) 750,000
– PW – Uniforms
(Sewer, Stormwater, Garage) 81,500
– PW – Essential Tools (Garage) 45,000
– PW – Power-Washing Contract
(Parking) 75,000
– PW – License Plate Readers
(Parking) 140,000
– PW – Vehicles (Sewer) 1,100,000
34 FY 2025-26 Proposed Budget 2
Non-GF
➢Expense – Personnel $121,352
– Parks & Rec – Cultural Arts Positions $20,929
– Upgrade MAII to Program Manager 50,454
– Upgrade MAI to MAII 49,969
Net $3,371,843
35 FY 2025-26 Proposed Budget 2
Non-GF – IT
➢Expense – Services & Supplies $960,434
– IT – Computer Purchase
(Equipment Replacement) $100,000
– IT – EOC Video Wall Update
(PEG Funds) 300,000
– IT – Software 436,100
– IT – Phone Service Update 124,334
➢Expense – Personnel $40,000
– IT – Overtime & Standby Pay $40,000
Net ($1,000,434)
36 FY 2025-26 Proposed Budget 2
Discussion
➢Expense – Services & Supplies $435,000
– ECD – BIO Conference $100,000
– ECD – Citywide Holiday
Decorations 170,000
– ECD – Promotores Social
Services System Navigators 165,000
Net ($435,000)
37 FY 2025-26 Proposed Budget 2
Discussion
➢Expense – Personnel $925,000
– PW – Traffic Management & Safety $325,000
1 FTE Traffic Engineer
– PW – Clean SSF 600,000
4 FTE PW Maint. Workers
Net ($925,000)
38 FY 2025-26 Proposed Budget 2
Projected GF Available F/B (As of June 30, 2026)
Reserve & Other Considerations 3
39 Available GF Fund Balance (FY 25) $29.0
FY 2025-26 Projected Deficit (12.2)
Available GF Ending Fund Balance (FY 26) $16.8
43% Reduction
Financial Analysis – 5 Year Projection
5 Year Projection 3
40 Revenues &
Expenditures
(in thousands)
2025 Mid
Year
Budget
2025 YE
Projected
2026
Forecast
2027
Forecast
2028
Forecast
2029
Forecast
Total Revenue $152,267 $151,814 $140,488 $143,492 $146,720 $149,974 Total
Expenditures 159,255 157,565 152,668 161,188 166,354 172,683 Surplus/(Deficit) $ (6,988) $ (5,751) $(12,180) $(17,695) $(19,634) $(22,709) Staff
Recommendation
Use $12.2M to balance GF budget
Incorporate feedback from Budget
Standing committee in preparation for the
City Council study session on June 11, 2025,
QUESTIONS?
Q&A 4
42