FY 2025-26 Mid-Year Financial Update
January 24, 2026
City of South San Francisco
Significant Mid-Year
Revenue Adjustments
• Property Tax - $7.2 million
• VLF in lieu payment $3.2 million
• RDA residual - $2.0 million
• Excess ERAF - $2.0 million
• Other Taxes - $1.2 million
• Ongoing commercial parking
compliance
• Use of Money - $2.4 million
• Interest earnings on investments
2 General Fund Adjusted Budget - Revenues
REVENUES FY 2025-26
(in millions) Adopted
Budget
Amended
Budget
Mid-Year
Budget
Estimated
Year End
Taxes
Property Tax $56.9 $56.9 $64.1 $64.1
Sales Tax 21.2 21.2 21.2 21.2
Transient Occupancy Tax 15.3 15.3 15.3 15.3
Other Tax 9.0 9.0 10.2 10.2
Franchise Fees 6.2 6.2 6.2 6.2
License and Permits 10.7 10.7 11.5 11.5
Fines & Forfeitures 0.9 0.9 0.9 0.9
Intergovernmental 2.9 4.9 5.0 5.0
Charges for Services 8.5 8.5 8.4 8.4
Inter-Fund Admin Charge 2.0 2.0 2.0 2.0
Use of Money & Property 5.1 5.1 7.5 7.5
Other Revenues 0.3 0.3 0.3 0.3
Transfers In 1.5 1.5 2.2 2.2
TOTAL REVENUES $140.5 $142.6 $154.7 $154.7
Notable Mid-Year
Adjustments
• $110,000 for minor
departmental operating
needs
• $1.8 million for settlement
agreement approved in FY
2024-25
• Earmarked from retroactive
parking tax compliance
payment in 2024-25
• Two position adds
• No net fiscal impact
3 General Fund Adjusted Budget - Expenditures
EXPENDITURES FY 2025-26
(in millions) Adopted
Budget
Amended
Budget
Mid-Year
Budget
Estimated
Year End
Salary and Benefits $116.9 $120.9 $121.0 $121.0
Supplies and Services 25.0 29.0 31.2 26.7
Capital 0.0 0.3 0.3 0.3
Interdepartmental 10.2 10.2 10.2 10.2
Transfers -
Operational 0.5 0.5 0.5 0.5
Transfers - Capital 0.0 1.8 1.8 1.8
TOTAL EXPENDITURES $152.5 $162.7 $165.0 $160.5
General Fund Adjusted Budget - Summary
4 FY 2025-26
(in millions) Adopted
Budget
Amended
Budget
Mid-Year
Budget
Estimated
Year End
TOTAL REVENUES $140.5 $142.6 $154.7 $154.7
TOTAL EXPENDITURES $152.5 $162.7 $165.0 $160.5
Surplus/(Deficit) (12.0) (20.2) (10.3) (5.8)
*Details on mid-year revenue, expenditure, CIP, position, and administrative adjustments are on slides 12-16.
General Fund Forecast
Significant Changes from Original Forecast
• Baseline increases in property tax and commercial parking tax • Assumption of 4% annual increases in property tax beyond FY 2026-27 • Assumption of 3% annual compensation growth beyond current contracts 6 General Fund - 5 Year Forecast Summary
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 Estimated
Year End Forecast Forecast Forecast Forecast Forecast
TOTAL REVENUES $154.7 $157.9 $162.5 $167.2 $172.1 $177.2 TOTAL EXPENDITURES $160.5 $162.8 $167.6 $172.4 $177.4 $182.6 Surplus/(Deficit) ($5.8) ($4.9) ($5.1) ($5.2) ($5.3) ($5.4)
1. City is in good financial health overall
2. Fund balance position establishes resiliency to
withstand economic cycles
3. Structural deficit exists but is manageable
4. No excess capacity to add materially to service levels or staffing
5. Budget and forecast will continue to be updated
and refined through delivery of proposed budget
7 Key Messages
Adopt a resolution to:
1. Accept the mid-year update for the
fiscal year ending June 30, 2026
2. Approve proposed budget
amendment 26.048 to provide
additional appropriations for the FY
2025-26 Operating and Capital
Improvement Plan budgets
8 Requested Council Actions
Questions?
FY 2025-26 Mid-Year Financial Update
City of South San Francisco
THANK YOU
FOR JOINING US TODAY
Backup Slides
Mid-Year Adjustment Detail
Type Amount Justification
Property Tax $7,200,000
$3.2 million (State paid 2/3 of owed property tax in-lieu of vehicle license fees shortfall revenue) plus $2 million Excess ERAF projected increase plus $2 million residual RDA proceeds projected increase.
Other Taxes -
Commercial Parking 1,200,000
Increase in Commercial Parking Tax attributed to ongoing compliance of a major taxpayer, whose payments were not included in original revenue estimates.
Fire Department 750,000 An increase needed to bring the budget in line with current year activity.
Parks and Recreation 163,000
Reducing aquatic program revenue due to postponed Orange Memorial Park Aquatics Center opening, along with the expected closure of the existing pool.
Planning Staffing Offset 450,000
Transfer from the Developer Fee Fund to the General Fund to cover approximately 25% of Planning staff's total payroll budget, and reflects work on General Plan Maintenance. These costs are funded through the General Plan Maintenance Fee, which is collected and held in the Developer Fee Fund.
Use of Money and
Property 2,350,472
This increase brings revenue in line with recent rent and interest earnings and to a total expected revenue of $7,500,000.
Total $12,113,472
General Fund Revenue Amendment Requests
12 1. Economic and Community Development: $20,000
• BIO 2026 Conference
2. Human Resources: $50,000
• Increase contract for additional Labor and Employee Relations Consultant
3. Information Technology: $40,000
• Additional Americans with Disabilities Act digital compliance support
4. Library: $20,000
• Replace A/V screen and projector and Gene Mullin Community Learning Center
5. Parks and Recreation: ($20,000)
• Reduce pool-related expenses due to delayed Orange Memorial Park Aquatics Center construction schedule.
General Fund Appropriations Requests (One-Time)
13 1. Fire Department: Budget neutral
• Convert Permit Technician contract to a 1.0 FT Permit Technician
2. Public Works Department: Budget neutral
• Convert Limited Duration Laboratory Chemist to a 1.0 FT Laboratory Chemist Position Requests
14 Capital Improvement Requests
15 Request Amount Funding Source Project
1 $50,000
Infrastructure Reserve (513)
Sd2201 - Francisco Terrace Flood Protection Levy
2 $130,000 St2303 - Bridge Asset Management Program
3 $800,000 St1703 - Bridge Preventative Maintenance Program (9 Bridges)
4 $12,280.84
OMP Ballfield Bond Fund (522)
Pk2309 - OMP Sportsfield Renovation
5 ($12,280.84) Pk2301 - OMP Main Playground Replacement 6 $200,000 Solid Waste Reduction (710) Sd2502 - Storm Water Trash Capture Devices 7 $1,000,000 Sewer Capacity (730) Ss2405 - Headworks #1 Grit Chamber Tower Rehabilitation
8 $300,000
Storm Water Fund (740)
Sd2502 - Storm Water Trash Capture Devices
9 $1,500,000 Sd2304 - Hickey Blvd Hillside Stabilization Project 10 ($1,000,000) Sd2501 - Storm Drain Improvement Project 11 ($2,000,000) Sd2401 - Storm Drain Repairs
12 $500,000 Citywide TIF (825) St1807 - GBI Phase 3
1. Planning Services: $200,000 (Transfer) / $200,000 (Expense)
2. Shuttle Grant: $161,853 (Grant Funding) / $169,311 (Expense)
3. Sewer Fund Transfer: $13,787,957
4. Legal Settlement: $1,812,000
5. ERP Implementation: $6,000,000
Administrative Items
16