City Council MeetingMarch 3, 2026Agenda Item 16.2
•FY 2025-26 Annual Budget Resolution (2025-06-24-1602) and budget document reviewed and approved by the City Council on June 24, 2025 •FY 2025-26 Adopted Budget document completed on September 15, 2025 Background
FY 2025-26 Budget Overview – All Funds
FY 2025-26 Budget Overview – General Fund
Summary of Changes to Proposals on Page A-9
FY 2025-26 Budget Requests
Financial ImpactProposed Action
$4.5 MillionDeny All non-safety New Budget Requests
$0.6 MillionReduce Contingency Budget
$2.1 MillionReduce General Fund Contribution to Capital Improvement Plan $1.7 MillionEnterprise Resource Planning Project Adjustment $6.09 MillionVacancy Estimate Adjustment
$15.1 Million
Detail of General Fund AdjustmentsFY2025-26 General Fund Requests$ (4,412,915)Item 25-0660 06/24/25Reduce FY25-26 CM Approved Budget Requests$ (2,050,000)Item 25-0660 06/24/25Reduce FY25-26 CM Proposed CIP to LRFP minimum$ (872,000)Item 25-0660 06/24/25Reduce FY25-26 CM Proposed Non-Departmental Contingency$ (1,700,000)Item 25-0660 06/24/25Transfer from IT ERP Project to General Fund$ (6,085,800)Item 25-0660 06/24/25Recalculate Vacancy Savings$ (150,000)Council Direction 6.5.25Reduce FY25-26 CM Proposed ND Special Services - Community Engagement$ 73,416 Council Direction 6.5.25City Attorney FY25-26 Budget Requests$ 54,661 Council Direction 6.5.25City Clerk FY25-26 Budget Requests$ 22,000 Council Direction 6.24.25Increase City Council Discretionary Budget$ 34,970 Council Direction 6.5.25Increase Firefighter Recruitment Efforts$ 387,174 Council Direction 6.5.25Increase OVP staff - Add 2 FTE and 3 PT (conditional; if lose CalVIP grant)$ (196,530)Allocation ChangeStores Transition from ASD to MUD and PW$ (147,779)Allocation ChangeOPTIC salary allocation to other funds$ (15,042,803) Community Engagement Budget – City Manager’s OfficeCouncil motion passed on 06/24/2025Reallocate Community Engagement Budget to the following areas:$73,416 to the City Attorney’s Office$54,661 to the City Clerk’s Office$22,000 to the City Council Discretionary Budget$ 5,500 Mayor$16,500 City Council $22,000 Community Engagement
Pursuant to Section 1903 of the City Charter, Chapter 19.03 of the Stockton Municipal Code, and Section 5.01.030 of the City Reserve and Fund Balance Policy, the FY 2025-26 Annual Budget reflects the following working capital, known contingency, and risk-based reserve balances (See Page C-3):Working Capital – 16.7% Budget Reserve $54.7 millionKnown Contingencies (Priority 1) $73.5 millionRisk-Based (Priority 2) $10.8 millionHowever, per the General Fund - Reserve and Fund Balance Policy, the proposed reserve targets were as follows (See Page A-12):
General Fund Reserves
Amount (millions)Category$54.7Working Capital$93.3Known Contingencies$90.7Risk-Based$238.7Total
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