03/06/68
1 FY 2025-26
Proposed Budget
Presentation to Council
Karen Chang, Director of Finance
Greg Henry, Financial Services Manager
June 11, 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
1 2
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2 GF Available Fund Balance Update
FY 2024-25 Financial Update 1
3 Updated Projected
FY 2024-25
Year End
Mid-Year Projected
FY 2024-25
Year End
$34.8 $34.8 Year Start Available Fund
Balance
Adjustments to Fund Balance¹ 7.8 7.8
Revenues (inflows) 145.3 144.1
Expenditures (159.9) (157.6)
(6.9) (5.8) Change in Available Fund
Balance
$27.9 $29.0 Projected Year-End Fund
Balance
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
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3 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
This Photo by Unknown Author is licensed under CC BY-SA 5 6
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4 2025-26 Proposed
Budget
General Fund
FY 2025-26 Proposed Budget Summary
8 FY 2025-26 Proposed Budget 2
FY 2025-26
Proposed Budget
Revenues $140.5M
Expenses 152.5M
Net Surplus/(Deficit) ($12.0M)
7 8
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5 FY 2025-26 General Fund Proposed Budget - Revenues FY 2025-26 Budgeted Revenues = $140.5 million 9 REVENUES FY 2023-24 FY 2024-25 FY 2025-26
Adjusted Proposed BudgetAdopted
Budget
Actuals as of
6/30/2024
(in millions)
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 10 FY 2023- FY 2024-25 FY 2025-26
24 REVENUES
Adjusted Proposed BudgetAdopted
Budget
Actuals as
of
6/30/2024
(in millions)
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. 9 10
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6 FY 2025-26 General Fund Adjusted Budget - Expenditures FY 2025-26 Budgeted Expenditures = $152.5 million 11 FY FY 2024-25 FY 2025-26
2023-24
Expenditures
Adjusted Proposed BudgetAdopted
Budget
Actuals as
of
6/30/2024
(in millions)
Salary and Benefits $106.1 $113.4 $114.4 $3.5M $116.9M* 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 $7.1M $152.5M
FY 2025-26 Proposed Budget 2
* Includes 7% vacancy savings, $8.0M
Department Requests
11 12
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7 FY 2025-26 GF Proposed Dept Budget – Expenditures
13 EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26
% Change from
FY 2024-25
Adopted
Proposed
Budget
Adjusted
Budget
Adopted
Budget
Actuals as of
6/30/2024
(in millions)
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 12.2%
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 FY 2023-24 FY 2024-25 FY 2025-26
% Change from
FY 2024-25
Adopted
Proposed
Budget
Adjusted
Budget
Adopted
Budget
Actuals as of
6/30/2024
(in millions)
Public Works 10.1 11.1 14.4 12.6 13.1%
Library 7.7 8.9 9.1 9.3 4.7%
Parks and Recreation 22.9 26.3 29.6 29.1 10.4%
CIP 2.0 1.9 2.2 1.9 0.0%
Non-Dept Expense 0.0 0.0 0.0 (8.0) - Salary Savings 0.7 0.0 3.4 0.0 0.0% TOTAL EXPENDITURES $140.8 $145.4 $162.8 $152.5 4.9%
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 13 14
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8 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
15 16
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9 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
17 18
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10 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
19 20
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11 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
21 22
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12 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
23 24
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13 GF – Library
Revenue $232,172
– ESL Grant $132,822
– ASES 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
25 26
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14 GF – Parks and Recreation
Revenue $140,822
– Expanded Aquatics Program $163,000
– Program Revenue Adjustments
to Match Historical Trends 600,000
– ELOP Program1
(622,178)
Expense – Services & Supplies $229,249
– Aquatic Center Supplies & Services1
$192,149
– Building Maint. (Fire/Life Safety,
Access Controls, Rain Gear) 14,500
– Vehicular Gates & Rollup Door
Maintenance (Police & Fire Stations) 20,000
– Caltrans Plaza Airspace Lease 2,600
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
New facility, anticipated
opening in early 2026
Replaces existing
single-pool facility with
a heated two-pool
facility
Expanded learn-toswim programs
More health and
wellness opportunities
Modern community
space
FY 2025-26 Proposed Budget 2
27 28
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15 GF – Parks and Recreation
Expense – Personnel $530,098
– Aquatics Positions1
– Rec & Comm Svcs Prog Coord 25,989
– Rec Leader II – Hourly 41,931
– Rec Leader III – Hourly 291,192
– Rec Leader IV – Hourly 100,726
– Bdlg Maint Custodian 59,566
– Full of Fun Program
– Rec & Comm Svcs Prog Coord - Hourly 23,256
– Parks Program
– Miscellaneous Hourly 29,801
– Park Maint Worker – Hourly (42,363)
Net ($618,525)
29 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)
30 FY 2025-26 Proposed Budget 2
29 30
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16 GF – Police
Expense – Services & Supplies $110,000
– Increased Recruitment Support $60,000
– Mental Health Services 50,000
Expense – Personnel $155,630
– Crisis Intervention Specialist $227,630*
Net ($289,038)
*This position is proposed to be funded with $72,000 in Opioid Settlement funds for FY2025-26.
PD will bring Drone contract to Council in July/Aug 2025 for separate appropriation 31 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
32 FY 2025-26 Proposed Budget 2
1. Additional adjustments for these positions in Non-GF 31 32
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17 GF – IT
Revenue $100,000
– Cellular/Antennae Rental Revenue
(Miller Garage) $100,000
Net $100,000
33 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
34 FY 2025-26 Proposed Budget 2
33 34
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18 Non-GF
Expense – Services & Supplies $2,266,500
– Parks & Rec – Sculpture for
OP IIC Location (Art In Lieu) $75,000
– PW – Anaerobic Digestor Cleaning (Sewer) 750,000
– PW – Uniform Rental Agreement
(Sewer, Stormwater, Garage) 81,500
– PW – Essential Tools (compressor,
welder, etc.) (Garage) 45,000
– PW – Power-Washing Contract (Parking) 75,000
– PW – License Plate Readers (Parking) 140,000
– PW – Vehicles (Sewer) 1,100,000
35 FY 2025-26 Proposed Budget 2
Non-GF
Expense – Personnel $121,353
– Parks & Rec – Cultural Arts Positions
– Recreation Leader II – Hourly 12,677
– Recreation Leader III – Hourly 8,253
– Public Works
– Upgrade MAII to Program Manager 50,454
– Upgrade MAI to MAII 49,969
Net $3,371,842
36 FY 2025-26 Proposed Budget 2
35 36
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19 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)
37 FY 2025-26 Proposed Budget 2
Storm Water Ongoing Operational Subsidy
Transfers to Storm Water Fund
– General Fund ($250,000)
– Gas Tax Fund (670,000)
Net ($920,000)
38 FY 2025-26 Proposed Budget 2
37 38
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20 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)
39 FY 2025-26 Proposed Budget 2
Projected GF Available F/B (As of June 30, 2026)
Reserve & Other Considerations 3
40 Available GF Fund Balance (FY 25) $29.0
FY 2025-26 Projected Deficit (12.0)
$17.0 Available GF Ending Fund Balance
(FY 26)
41% Reduction
39 40
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21 General Fund Reserves
Reserve & Other Considerations 3
41 Estimated Ending Financial Reserve for FY 2025-26
(in millions)
General Reserve $27.8
Infrastructure Reserve* 5.4
CalPERS Stabilization Reserve 6.2
Available GF Balance* 17.0
Total $56.4
Financial Analysis – 5 Year Projection
5 Year Projection 3
42 2030
Forecast
2029
Forecast
2028
Forecast
2027
Forecast
2026
Forecast
2025 YE
Projected
2025 Mid
Year
Budget
Revenues &
Expenditures
(in thousands)
Total Revenue $152,267 $151,814 $140,488 $143,492 $146,720 $149,974 $153,246 159,255 157,565 152,532 159,986 164,678 169,508 174,480 Total Expenditures
Surplus/(Deficit) $ (6,988) $ (5,751) $(12,044) $(16,494) $(17,958) $(19,533) $(21,234) 41 42
03/06/68
22 Projected Reserves & Undesigned F/B - 5 years
43 FY 2025-26 Proposed Budget 2
12.0 M
16.5 M
18.0 M
19.5 M
21.2 M
$(30) M
$(20) M
$(10) M
-
$10 M
$20 M
$30 M
$40 M
$50 M
$60 M
$70 M
$80 M
2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
20% General Reserve CalPERS Stabilization Reserve Infrastructure Reserve Available Fund Balance Draw From Reserves Min. Reserve $28M
Total Deficit $87.3M
Staff Recommendation
USE $12.0M TO BALANCE GF
BUDGET
EVALUATE REVENUE
ENHANCEMENT OPTIONS
EXPLORE LONG-TERM
COST CONTAINMENT
MEASURES
43 44
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23 QUESTIONS?
Q&A 4
45 45