Proposed FY 2025-26 and FY 2026-27 Operating Budget Study Session May 13, 2025
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TO:Andrew P. Powers, City Manager
FROM:Jaime Boscarino, Finance Director
DATE:May 13, 2025
SUBJECT: Proposed FY 2025-26 and FY 2026-27 Operating Budget Study Session RECOMMENDATION:
1. Receive information on the Proposed FY 2025-26 and FY 2026-27 Operating Budget.
2. Find that this action is not a project as defined under the California Environmental Quality Act.
LEVINE ACT ITEM: No
FINANCIAL IMPACT:
Financial Impact to be Determined. Financial impact of the Proposed FY 2025-26 and FY 2026-27 Operating Budget is $217,622,323 and $226,346,525, for a Total Proposed Budget of $305,758,193 and $305,143,341, respectively. This is a study session only. City Council will be requested to adopt the FY 2025-26 and FY 2026-27 Operating Budget and CIP Budget at its June 10, 2025, public hearing. The public hearing date was approved by City Council at the April 8, 2025, City Council Capital Improvement Program Study Session meeting.
BACKGROUND:
The purpose of this study session is to provide City Council with an overview of the Proposed FY 2025-26 and FY 2026-27 Operating Budget (Proposed Budget) for all funds.
The Proposed Budget will be provided under separate cover and available for review at www.toaks.gov/budget or by emailing the Finance Department at [email protected].
Operating Budget Preparation
The Operating Budget preparation began in December 2024. Staff has worked diligently since then to balance operating appropriation requests with revenue estimates. The Proposed General Fund Budget is structurally balanced for both fiscal years and represents a fiscally sound plan that fully complies with City Council’s formal Financial and Budget Policies while investing strategically in the community, environmental sustainability, and the City’s technological future. The City prepares a biennial operating budget, which provides the financial framework for City operations over two fiscal years.
All departments are involved in the development of the Operating Budget.
Proposed FY 2025-26 and FY 2026-27 Operating Budget Study Session May 13, 2025
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City Council Finance/Audit Committee
The City Council Finance/Audit Committee (Committee) was established in 2008 to comply with Statement on Auditing Standards (SAS) 114 and promote additional financial transparency. The Committee provides a forum for open communication between the City’s external auditors and City Council. Staff meets periodically with the Committee to provide updates and receive input on the City’s budget and finances. Staff met with the Committee on May 12, 2025, and provided an overview of the Proposed Budget.
City Council Goals and Top Priorities
On March 18, 2025, City Council discussed their Citywide Goals and Priorities for FY 2025-26 and FY 2026-27, which were subsequently approved at the April 8, 2025, City Council meeting. The Proposed Budget was developed with a focus on strategic investment towards City Council’s Goals and Priorities, many of which span multiple years.
Budget Theme – “Growing Together: Investing in a Thriving Community” The City remains a leader in fiscal sustainability and forward-thinking strategic planning.
Key focus areas of the Proposed Budget include investments in homelessness and affordable housing, supporting the implementation of the updated General Plan, environmental sustainability, and transformative technology advancements. A highlight of a few Priorities is provided below.
Homelessness and Affordable Housing (City Council FY 2025-26 Priority #1) Thrive Grove, the City’s first navigation center, will be fully operational in FY 2025-26 and FY 2026-27. The Proposed Budget includes annual operational funding to support the ongoing operating costs. The County of Ventura (County) will fund 50 percent of the operating costs on an ongoing annual basis. The City was awarded a $5.8 million State Encampment Resolution Fund grant to support Thrive Grove’s construction and operation. The majority of the first year’s operating costs will be funded by the grant. More information about the Navigation Center can be found on the City’s website:
https://toaks.gov/thrivegrove.
Comprehensive General Plan Update (City Council FY 2025-26 Priority #6) The City completed a comprehensive, multi-year update to its General Plan, which was adopted by City Council in December 2023. The General Plan necessitates Zoning Code, Sign Program, and Specific Plan updates. Annual funding is included in the Proposed Budget to support the implementation of these required updates. More information on the City’s General Plan process can be found at https://www.toaks2045.org/.
Proposed FY 2025-26 and FY 2026-27 Operating Budget Study Session May 13, 2025
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Environmental Sustainability (City Council FY 2025-26 Priority #8) The Climate and Environmental Action Plan (CEAP), adopted in May 2024, outlines strategies to protect the environment and address climate change. CEAP Initiatives include targeting air quality, wildfire risk, energy reliability, and environmental health. The Proposed Budget includes funding for CEAP implementation strategies, workshops, and outreach efforts. More information on the City’s CEAP can be found at https://www.toclimateaction.org/. In addition, the Proposed Budget includes a Municipal Energy Plan Update, which details the strategies and actions the City will pursue to reduce energy usage, expenses, and greenhouse gas emissions at City-owned facilities. 2025-2030 Information Technology Strategic Plan (City Council FY 2025-26 Priority #10) The Information Technology Strategic Plan (ITSP), approved by City Council on January 28, 2025, outlines a comprehensive five-year strategy to modernize systems, enhance data management, adopt emerging technologies, and improve City operations and services. Structured around five core strategic goals, the ITSP provides a framework for advancing the City’s technology infrastructure and operations, while fostering innovation across all departments. Although planned as a five-year roadmap, the ITSP is intended to be a flexible and living document that can adapt to evolving priorities, emerging technologies, and changing needs.
Key initiatives planned for the Proposed Budget include Enterprise Resource Planning (ERP) Scoping to evaluate and modernize the existing ERP, development of a Data Management Plan to establish a consistent framework for managing data assets, enhancing Disaster Recovery and Business Continuity to ensure alignment with industry best practices and operational resilience, and a robust Project Management system to streamline and improve project oversight. In addition, the creation of a new Information Technology Department is included and discussed in more detail in the next section.
More information on the ITSP can be found by visiting: https://toaks.primegov.com/ITSP.
Staffing Overview
Staffing plays a critical role in the City’s ability to deliver effective services to the community. In FY 2007-08, the City funded 482 positions. From FY 2008-09 through FY 2013-14, 101 positions were eliminated due to the Great Recession and the elimination of Redevelopment Agencies. Beginning in FY 2014-15, the City maintained the same position count at 381 for 10 consecutive years. During the last budget process, the City added nine new positions for FY 2023-24 and seven new positions for FY 2024-25, bringing the City’s current position count to 397. The Proposed Budget includes the addition of four positions in FY 2025-26 and four positions in FY 2026-27 (Figure 1).
Proposed FY 2025-26 and FY 2026-27 Operating Budget Study Session May 13, 2025
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Figure 1 – History of Funded Positions
Establishing a Dedicated IT Department
As previously mentioned, the ITSP was presented to City Council on January 28, 2025.
The report stated that staff would include recommendations for new IT positions through the budget process. The Proposed Budget includes a significant organizational change by transitioning the IT Division from the Finance Department to a dedicated IT Department. This strategic shift repositions technology as a cornerstone of City operations, enabling a full-service IT model that drives innovation, enhances process improvements, and delivers customer centric service. The new IT Department will focus on advancing technology, improving data accessibility and analytics, optimizing workflows, and providing proactive support to City departments. It will move beyond traditional internal technology services by taking a leadership role in platform selection, system integration, and vendor evaluation. This structure will offer departments the guidance necessary to navigate complex technology landscapes, consolidate systems, and achieve greater efficiency.
To support this new organizational model, seven positions are proposed to be added to the City’s position count. These roles were strategically developed to align with the IT Department’s expanded mission. The positions were crafted to build leadership capacity, strengthen data and project management capabilities, and provide the technical expertise necessary to implement the ITSP initiatives. Fully funded by the General Fund, these additions are essential to advancing the City’s vision for a modern and innovative technology environment.
FY 2025-26 FY 2026-27
1. Deputy IT Director 1. IT Manager
2. Project Manager 2. IT Supervisor
3. Data Officer 3. Project Manager
4. IT Analyst
482 470 457 447
407 397 381 381 381 381 381 381 381 381 381 381 390 397 401 405 0 50
100
150
200
250
300
350
400
450
500
550
FY 2007-08FY 2008-09FY 2009-10FY 2010-11FY 2011-12FY 2012-13FY 2013-14FY 2014-15FY 2015-16FY 2016-17FY 2017-18FY 2018-19FY 2019-20FY 2020-21FY 2021-22FY 2022-23FY 2023-24FY 2024-25FY 2025-26FY 2026-27 Proposed FY 2025-26 and FY 2026-27 Operating Budget Study Session May 13, 2025
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Management has taken a phased and thoughtful approach toward the new positions.
Spreading their deployment over two fiscal years provides the time necessary to initiate strategic recruitment and preserves agility in the face of economic uncertainty. In addition to the seven new IT positions, the City has repurposed two existing vacant positions to create roles for a Chief Innovation Officer and a Business Analyst. This reallocation of staffing resources reflects the City’s ongoing practice of regularly evaluating changing organizational needs and identifying opportunities to realign existing resources.
Public Works Capital Engineering Division
The Department of Public Works (DPW) is the City’s largest department, responsible for implementing the largest share of the City’s budget and capital projects. DPW continues to focus on strategically implementing City Council Goals and Priorities, preparing for operational needs, and providing quality service to the public. DPW is proposing to create a new Capital Engineering Division focused on utilities capital projects. A new Engineering Division Manager position would head the division and ensure efficient implementation of utilities capital projects. The position would be funded 50 percent from the Water Fund and 50 percent from the Wastewater Fund.
FY 2025-26
1. Engineering Division Manager
Community Engagement and Community Feedback Form
As part of the FYs 2025-2027 Budget development process, the City launched its public outreach effort themed “Growing Together: Investing in a Thriving Community.” The budget engagement process was designed to involve residents and raise awareness about how the City budget supports the community’s quality of life. Through this effort, the City aimed to both educate the public about the budget process and gather meaningful input on community priorities.
To make the budget process more accessible and personal, staff attend local events and meetings to connect directly with community members. As part of this year’s outreach, staff participated in the Safe Passage Food Share event on April 12, presented to the Youth Commission on May 7, and are scheduled to present to the Council on Aging before the public hearing in June. Community engagement efforts focus on learning about the budget process, how to participate, and how to submit feedback on what matters most to them. Overall, approximately 150 feedback forms have been submitted from residents throughout the community. The feedback form was provided in English and Spanish.
Among the feedback received, many respondents highlighted priorities such as supporting affordable housing development, public transportation, increasing services for individuals experiencing homelessness, preserving open space, and maintaining strong public safety services and wildfire resiliency.
Proposed FY 2025-26 and FY 2026-27 Operating Budget Study Session May 13, 2025
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The City provides a dedicated website for each budget cycle at https://www.tobudget.org/, offering residents easy access to budget information and opportunities to participate in the process. The website includes a feedback form, visual graphics illustrating the budget process and City spending, and a breakdown of how much General Fund services cost per resident each day. It also features a Frequently Asked Questions (FAQ) page and links to the City’s financial transparency tool for those interested in exploring the budget in more detail.
To further expand outreach, the City utilized the City newsletter (City Scene) and the social media outlets Facebook, Instagram, X (Twitter), and Nextdoor. Brief videos were posted to direct residents to the budget website, encourage participation, and promote public meeting attendance.
DISCUSSION/ANALYSIS:
Overview of Proposed FY 2025-26 and FY 2026-27 Operating Budget The Proposed Budget will be presented both in document format (provided under separate cover via Supplemental Packet) and in a new online format at the following address: https://thousandoaks.openbook.questica.com/#/
Both formats are organized into the following broad sections:
•Citywide Budget Summary: Provides an overview of all City funds, including both revenue and appropriations (expenditures/expenses).
•Summaries by Fund: Provides program and resource details by fund. Staff are currently finalizing the goals, objectives, and performance measure information to be provided in the final adopted budget document.
•General Fund Budget Summary: Highlights the General Fund’s revenues and expenditures, which support many of the City’s core services. •Position Summaries: Provides a ten-year history of City staffing by department, including a detailed breakdown of current positions by fund.
Citywide Budget Summary
The total proposed appropriations (including capital) across all City funds are $305.8 million for FY 2025-26 and $305.1 million for FY 2026-27, as shown in Figure 2. The General Fund represents the largest portion of the overall budget, accounting for 41.6 percent of appropriations for FY 2025-26 and 42.3 percent for FY 2026-27.
Proposed FY 2025-26 and FY 2026-27 Operating Budget Study Session May 13, 2025
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Figure 2 – City Appropriations by Fund
Funds
Proposed Budget FY 2025-26
% of Total Budget
Proposed Budget FY 2026-27
% of Total Budget
General Fund 127,098,134$ 41.6%128,909,916$ 42.3%
Water Fund 51,624,07816.9%51,893,83717.0%
Wastewater Fund 39,264,52412.8%36,274,73111.9%
Transportation Fund 16,792,9675.5% 18,469,4706.1%
Landscaping Assessment District Fund12,037,9803.9% 12,156,1994.0% Library Fund 10,356,6703.4% 10,982,0243.6%
Street Improvement Funds 9,630,4153.2% 11,671,9603.8%
Los Robles Golf Course Fund8,476,2492.8% 9,625,7093.2%
Theatres Fund 6,226,8192.0% 6,437,3482.1%
Grants Fund 6,053,3772.0% 3,680,3701.2%
Capital Projects Funds 5,275,0321.7% 2,823,8940.9%
Lighting Assessment District Fund3,950,5481.3% 3,790,0821.2% Solid Waste Fund 3,533,9101.2% 3,046,6981.0%
Stormwater/Flood Control Assessment Funds2,232,1830.7% 2,043,9520.7% ECTA - East County Transit Alliance1,162,0000.4% 1,237,0000.4% Public Financing Authority Fund1,005,6000.3% 1,003,8000.3% Community Development Block Grant (CDBG)650,0000.2% 650,0000.2% Housing Trust Fund 251,4570.1% 258,1010.1%
Cable Television (PEG) Fund98,0000.0% 150,0000.1%
Law Enforcement Agency Seizure Fund38,2500.0% 38,2500.0% Total Citywide Appropriations305,758,193$ 100.0%305,143,341$ 100.0% Summary of the City’s Major Funds
General Fund
The General Fund is the City’s primary operating fund and supports core services including:
•Community development, building, housing, planning, and zoning •Community services, including libraries, cultural arts, and facilities for older adults and teens
•General governance and administrative operations
•Public works, streets, engineering, and sustainability programs •Public safety services provided by the Ventura County Sheriff Proposed FY 2025-26 and FY 2026-27 Operating Budget Study Session May 13, 2025
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As the City’s most flexible funding source, the General Fund can be used for a wide range of purposes and is not restricted to specific services or programs. To ensure long-term fiscal health, the City maintains a structurally balanced General Fund. As part of the budget development process, staff verify that operating revenues are greater than or equal to operating expenditures. Capital improvements are funded from General Fund reserves rather than ongoing revenues.
Revenue: The City’s primary revenue source is sales tax, which comprises 32.2 percent of the Proposed General Fund Revenue Budget. Because the City has limited capacity to raise new revenue, its financial position is largely reliant upon the overall health of the economy. Thousand Oaks is a low-tax city that incorporated without a general municipal property tax. Although the City now receives a modest portion of property tax revenue, this amount is allocated by the County and represents approximately 17.2 percent of the Proposed General Fund Revenue Budget.
In light of ongoing economic uncertainty and the potential for a recession, staff has taken a conservative approach to estimating General Fund revenues compared to the projected actuals for FY 2024-25. Estimated revenue and transfers in are $113.5 million for FY 2025-26 and $115.7 million for FY 2026-27 (Figure 3).
Figure 3 – General Fund Revenue
Revenue and Transfers
Prior Year
Actual
FY 2023-24
Projected
Actuals
FY 2024-25
Proposed
Budget
FY 2025-26
Proposed
Budget
FY 2026-27
Taxes and Fees
Sales and Use Tax 34,892,857$ 35,574,890$ 36,328,855$ 37,474,436$ Property Tax 17,769,773 18,474,701 19,355,786 19,993,688 Property Tax In-Lieu of VLF15,578,623 16,214,502 16,747,959 17,310,690 Franchise Fee 7,531,986 7,723,013 7,867,000 8,103,500
Transient Occupancy Tax 4,930,078 5,034,173 5,185,000 5,340,000 Business Tax 2,331,287 2,342,298 2,400,000 2,520,000
Other Taxes 809,565 823,794 817,000 849,000
Total Taxes and Fees 83,844,169$ 86,187,371$ 88,701,600$ 91,591,314$ Charges for Current Services 8,366,403 7,722,088 9,069,429 9,381,987 Licenses and Permits 5,940,634 6,582,746 5,498,700 5,648,700 Fines and Penalties 984,651 923,749 978,500 978,500
Revenue from Other Agencies7,268,824 929,869 903,375 1,453,100 Revenue From Use of Money 7,615,695 7,243,056 5,123,810 4,463,625 Other Revenue 4,071,552 431,737 1,731,431 718,901
Total Revenue 118,091,928$ 110,020,616$ 112,006,845$ 114,236,127$ Transfers From Other Funds 1,355,538 1,467,078 1,457,615 1,449,160 Total Revenue and Transfers*119,447,466$ 111,487,694$ 113,464,460$ 115,685,287$ *The total Prior Year Actual FY 2023-24 will not tie back to the Annual Comprehensive Financial Report (ACFR) due to Net Fair Value Investment, Interfund Receivables/Payables, and prior period restatements.
Proposed FY 2025-26 and FY 2026-27 Operating Budget Study Session May 13, 2025
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Key General Fund revenue sources budgetary highlights are below:
•Sales Tax is the largest source of General Fund revenue, budgeted at $36.3 million in FY 2025-26 (2.1 percent increase) and $37.5 million in FY 2026-27 (3.2 percent increase). This follows a $2.9 million decline from FY 2022-23 to FY 2023-24, and a slight $0.7 million increase projected in FY 2024-25. The slight increase in Sales Tax revenue reflects higher interest rates and shifting consumer spending habits, particularly in discretionary sectors. While very modest growth is projected for the next two fiscal years, projections remain conservative considering broader economic uncertainty. The autos and transportation sector remains the City’s largest sales tax contributor, though vehicle sales have softened. Overall, with the potential of an economic slowdown and tariff uncertainty, sales tax revenue projections are conservative.
•Property Tax revenue is budgeted at $19.4 million (4.8 percent increase) in FY 2025-26 and $20.0 million (3.3 percent increase) in FY 2026-27. Residential properties comprise approximately 75 percent of the City’s assessed valuation.
While home prices have continued to rise, sales volume has declined due to high interest rates. Proposed Budget reflect continued assessed valuation growth. •Property Tax in-lieu of Motor Vehicle License Fee (VLF) revenue is budgeted at $16.7 million in FY 2025-26 (3.3 percent increase) and $17.3 million in FY 2026- 27 (3.4 percent increase) based on anticipated growth in assessed valuation. •Franchise Fee revenue is budgeted at $7.9 million (1.9 percent increase) in FY 2025-26 and $8.1 million in FY 2026-27 (3.0 percent increase). The City receives Franchise Fee revenue from its waste hauler, cable companies, and utility providers (water, electric, and natural gas). Increases are anticipated in both waste hauler and utility companies, while the Proposed Budget anticipates a decline in franchise fee revenue from cable companies due to subscribers moving towards streaming services.
•Transient Occupancy Tax (TOT) revenue is budgeted at $5.2 million in FY 2025- 26 (3.0 percent increase) and $5.3 million in FY 2026-27 (3.0 percent increase).
TOT revenue has rebounded from pandemic-related declines and is now performing near pre-COVID levels. Budget projections for the next two fiscal years assume continued stable performance with modest growth.
Proposed FY 2025-26 and FY 2026-27 Operating Budget Study Session May 13, 2025
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•Business Tax revenue is budgeted at $2.4 million in FY 2025-26 (2.5 percent increase) and $2.5 million in FY 2026-27 (5.0 percent increase). The forecast assumes modest growth based on current business tax trends. While revenues are gradually increasing, projections remain conservative for FY 2025-26 given the potential for a broader economic slowdown.
•Licenses and Permits revenue is budgeted at $5.5 million in FY 2025-26 (16.5 percent decline) and $5.6 million in FY 2026-27 (2.7 percent increase). This category includes building permits, planning fees, and other development-related revenues. Budgetary projections reflect a conservative outlook due to high interest rates, construction price increases, and a slowdown in large-scale projects.
Appropriations: The largest components of General Fund spending are City Salaries and Benefits and Police services. For FY 2025-26, Salaries and Benefits comprise approximately 44.1 percent of General Fund operating requirements, increasing slightly to 44.8 percent in FY 2026-27. Police costs account for 36.5 percent and 34.4 percent of operating requirements, respectively. As illustrated in Figure 4 below, total General Fund appropriations are proposed at $127.1 million for FY 2025-26 and $128.9 million for FY 2026-27.
Figure 4 – General Fund Appropriations
Appropriations
Prior Year
Actual
FY 2023-24
Projected
Actuals
FY 2024-25
Proposed
Budget
FY 2025-26
Proposed
Budget
FY 2026-27
Salaries and Benefits 38,909,672$ 41,670,061$ 47,096,391$ 50,474,831$ Police Services 32,967,590 34,255,964 36,850,006 38,706,206 Maintenance and Operations16,880,420 16,500,555 21,112,184 21,695,927 Capital Outlay 1,927,632 1,013,005 2,893,442 2,120,700
Total Operating Requirements90,685,314$ 93,439,585$ 107,952,023$ 112,997,664$ Capital Improvements 7,264,307 5,104,684 8,682,000 13,091,000 Maintenance Improvements 353,850 478,604 5,938,600 605,500 Transfers to Other Funds 1,540,348 1,484,760 4,525,511 2,215,752 Total Requirements 99,843,819$ 100,507,633$ 127,098,134$ 128,909,916$ •Salaries and Benefits represent the largest portion of the General Fund’s Operating Budget, totaling $47.0 million in FY 2025-26 and $50.5 million in FY 2026-27. The increases reflect projected adjustments to salaries and benefits and include the additional positions discussed in the Background Section of this report. The City budgets for full staffing, though actual expenditures are invariably lower due to vacancies that occur throughout the year.
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City Council has been taking proactive steps to address its unfunded pension liability with CalPERS. First, a “fresh start” program was adopted which shortened the amortization schedule from 30 years to 15 years. FY 2025-26 represents year seven of the 15-year amortization period. Overall, this action was projected to save the City approximately $30.0 million. Second, the City contributes one-time additional payments of approximately $1.5 million annually using savings from vacant positions. Finally, the City established a pension rate stabilization trust fund (PRSTF) with an initial contribution of $22.5 million. As of March 31, 2025, the PRSTF fund has grown to $32.7 million. This reserve serves as a safeguard to help offset pension cost spikes during economic downturns or periods of market volatility.
•Police Costs are provided through a contract with the Ventura County Sheriff’s Department and represent the second-largest General Fund expenditure. Police costs are budgeted at $36.9 million in FY 2025-26 and $38.7 million in FY 2026- 27 The increase in FY 2025-26 is based on projected actual expenditures in FY 2024-25, rather than the prior Adopted Budget. Actual costs typically come in below budget due to staffing vacancies that occur throughout the year. City staff maintains ongoing coordination with the Ventura County Sheriff’s Department leadership to assess current public safety needs and strategically plan for future service levels.
•Maintenance & Operations (M&O) costs, including internal chargebacks and Capital Outlay, are budgeted at $24.0 million in FY 2025-26 and $23.8 million in FY 2026-27. These costs cover a wide range of contracted services, supplies, and operational expenses that support daily City functions. These base operational costs are supplemented with targeted investments in key City initiatives.
As mentioned previously, the Proposed Budget includes funding for operations of Thrive Grove, ongoing implementation of the City’s comprehensive General Plan update, contract services increases for sidewalk maintenance and displacement removal, and technology investments to support implementation of the City’s ITSP, including cybersecurity enhancements, GIS modernization, and consulting services for the ERP project and the data management plan. •Transfers to Other Funds from the General Fund are included in the Proposed Budget to support operations and fulfill regulatory and financial commitments.
These transfers include: $2.1 million to the Library Fund in FY 2025-26 for capital projects currently in progress, with no transfer planned for FY 2026-27; $1.3 million in FY 2025-26 and $1.1 million in FY 2026-27 to the Stormwater Fund to support implementation of mandated regulations; $1.0 million annually to the Public Financing Authority for debt service obligations; and $0.1 million annually to the Community Recreation and Open Space Fund.
Proposed FY 2025-26 and FY 2026-27 Operating Budget Study Session May 13, 2025
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Library Fund
The Library Fund accounts for operations at both the Grant R. Brimhall Library and Newbury Park Branch Library. The total Proposed Library Budget is $10.4 million for FY 2025-26 and $11.0 million and FY 2026-27. The budget includes funding for salaries and benefits, M&O, and capital improvements to maintain and enhance library facilities and services.
Prior Year
Actual
FY 2023-24
Projected
Actual
FY 2024-25
Proposed
Budget
FY 2025-26
Proposed
Budget
FY 2026-27
Revenue
Property Tax 9,150,023$ 9,838,405$ 9,928,666$ 10,321,731$ Other Revenue 327,936 514,441 561,376 1,159,767
Transfers From Other Funds 365,544 230,560 2,093,728 -
Total Revenue 9,843,503$ 10,583,406$ 12,583,770$ 11,481,498$ Appropriations
Salaries and Benefits 6,172,503$ 6,350,019$ 6,822,317$ 7,093,300$ Maintenance and Operations 3,126,206 3,437,126 3,524,353 3,688,724 Total Operating Requirements9,298,709$ 9,787,145$ 10,346,670$ 10,782,024$ Capital Improvements 1,894,524 796,261 10,000 200,000
Maintenance Improvements 301,248 - - -
Total Estimated Requirements11,494,481$ 10,583,406$ 10,356,670$ 10,982,024$ Reserve/(Use of Fund Balance)(1,650,978)$ -$ 2,227,100$ 499,474$ Library Fund
Revenue: Library revenues are restricted for library operations and capital improvements, property tax serving as the primary funding source. Revenues are budgeted at $12.6 million in FY 2025-26 and $11.5 million in FY 2026-27. When needed, the Library Fund also receives General Fund transfers to support operations and capital projects. A $2.1 million transfer from the General Fund is included in FY 2025-26, with no transfer planned for FY 2026-27. The FY 2025-26 transfer will support current and proposed capital projects.
Appropriations: The majority of the Library Fund’s budget is dedicated to salaries and benefits at $6.8 million in FY 2025-26 and $7.1 million in FY 2026-27. In addition, M&O costs total $3.5 million and $3.7 million respectively. A significant portion of the Library’s M&O budget is allocated for repairs and maintenance to preserve the condition and functionality of both library facilities.
Other Governmental Funds
Lighting Fund – The Lighting Fund supports the maintenance and improvement of the City’s traffic signal safety lighting and streetlights within the Lighting Assessment District. While the Lighting Fund reflects an overall deficit due to planned capital projects, it remains operationally balanced. Sufficient fund balance is available to fully fund the proposed capital improvement projects.
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Prior Year
Actual
FY 2023-24
Projected
Actual
FY 2024-25
Proposed
Budget
FY 2025-26
Proposed
Budget
FY 2026-27
Revenue
Property Tax 2,298,478$ 2,371,364$ 2,416,500$ 2,483,500$ Special Assessments 529,248 547,094 563,000 580,000
Other Revenue 55,266 60,213 54,903 50,873
Transfers From Other Funds 81,478 27,200 25,000 -
Total Revenue 2,964,470$ 3,005,871$ 3,059,403$ 3,114,373$ Appropriations
Salaries and Benefits 318,206$ 353,691$ 382,899$ 396,232$ Maintenance and Operations 2,094,936 2,287,659 2,277,649 2,343,850 Total Operating Requirements 2,413,142$ 2,641,350$ 2,660,548$ 2,740,082$ Capital Improvements 43,733 209,546 690,000 450,000
Maintenance Improvements 308,029 411,203 600,000 600,000 Total Estimated Requirements 2,764,904$ 3,262,099$ 3,950,548$ 3,790,082$ Reserve/(Use of Fund Balance) 199,566$ (256,228)$ (891,145)$ (675,709)$ Lighting Fund
Revenue: The Lighting Fund receives revenue primarily from special assessments and ad valorem property tax. Revenues are budgeted at $3.1 million for both FY 2025-26 and FY 2026-27.
Appropriations: Proposed appropriations for the Lighting Fund total $4.0 million in FY 2025-26 and $3.8 million in FY 2026-27. The majority of the M&O budget is allocated to electricity costs associated with operating traffic signals and streetlights. Each fiscal year also includes funding for capital improvement and maintenance projects at $1.3 million and $1.1 million, respectively.
Landscaping Fund – The Landscaping Fund provides for landscape maintenance and improvements within the City’s Landscape Assessment Districts. While the Landscaping Fund reflects an overall deficit due to planned capital improvement projects, it remains operationally balanced. Revenues are sufficient to cover annual operating expenditures, and adequate fund balance is available to fund the proposed capital improvement projects.
Prior Year
Actual
FY 2023-24
Projected
Actual
FY 2024-25
Proposed
Budget
FY 2025-26
Proposed
Budget
FY 2026-27
Revenue
Special Assessments 5,460,207$ 5,586,286$ 5,833,800 6,009,000 Property Tax 1,880,981 1,949,727 1,880,100 1,908,100
Other Revenue 387,260 418,752 377,262 326,831
Total Revenue 7,728,448$ 7,954,765$ 8,091,162$ 8,243,931$ Appropriations
Salaries and Benefits 854,595$ 1,044,010$ 1,343,081$ 1,410,241$ Maintenance and Operations 4,607,225 5,285,319 5,929,899 6,135,958 Total Operating Requirements 5,461,820$ 6,329,329$ 7,272,980$ 7,546,199$ Capital Improvements 47,212 562,250 4,765,000 4,610,000 Total Estimated Requirements 5,509,032$ 6,891,579$ 12,037,980$ 12,156,199$ Reserve/(Use of Fund Balance) 2,219,416$ 1,063,186$ (3,946,818)$ (3,912,268)$ Landscaping Fund
Proposed FY 2025-26 and FY 2026-27 Operating Budget Study Session May 13, 2025
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Revenue: The Landscaping Fund receives revenue primarily from special assessments and ad valorem property tax. Revenues are budgeted at $8.1 million in FY 2025-26 and $8.2 million in FY 2026-27.
Appropriations: Proposed appropriations for the Landscaping Fund total $12.0 million in FY 2025-26 and $12.2 million in FY 2026-27. The M&O budget is primarily allocated to contracted landscape services and water costs. The budget also includes capital improvement projects of $4.8 million in FY 2025-26 and $4.6 million in FY 2026-27.
Stormwater Fund – The Stormwater Fund supports the City’s compliance with the National Pollutant Discharge Elimination System (NPDES) permit, which mandates a range of stormwater quality and environmental protection activities. Permit requirements include illicit discharge/dumping response and abatement, public education and outreach, public infrastructure maintenance, construction site pollution controls, ongoing monitoring, and new development discharge controls.
Prior Year
Actual
FY 2023-24
Projected
Actual
FY 2024-25
Proposed
Budget
FY 2025-26
Proposed
Budget
FY 2026-27
Revenue
Special Assessment 149,788$ 150,000$ 156,000$ 157,000$ Other Revenue 574,275 585,827 450,000 450,000
Transfers From Other Funds 326,757 204,132 1,626,183 1,436,952 Total Revenue 1,050,820$ 939,959$ 2,232,183$ 2,043,952$ Appropriations
Salaries and Benefits 639,098$ 673,693$ 535,763$ 555,404$ Maintenance and Operations 314,177 266,266 531,420 538,548 Total Operating Requirements 953,275 939,959 1,067,183 1,093,952 Capital Improvements - - 615,000 400,000
Maintenance Improvements 97,545 - 550,000 550,000
Total Requirements 1,050,820$ 939,959$ 2,232,183$ 2,043,952$ Reserve/(Use of Fund Balance) -$ -$ -$ -$ Stormwater Fund
The Stormwater Fund is primarily supported by special assessment fee revenue and the sale of reclaimed water. The special assessment is levied countywide and may only be increased through a County-wide ballot measure. Revenues are budgeted at $2.2 million in FY 2025-26 and $2.0 million in FY 2026-27. As NPDES permit compliance costs continue to rise, General Fund support for the Stormwater Fund is expected to increase accordingly. The Proposed Budget includes General Fund transfers of $1.3 million in FY 2025-26 and $1.1 million in FY 2026-27. An additional $0.3 million transfer from the Solid Waste Fund is also included each year. While funding these compliance mandates is a common challenge across cities, staff continue to evaluate strategies to reduce long-term reliance on General Fund support. Total operating and capital appropriations are $2.2 million in FY 2025-26 and $2.0 million in FY 2026-27. The Proposed Budget also includes capital improvement projects totaling $1.2 million and $1.0 million respectively.
Proposed FY 2025-26 and FY 2026-27 Operating Budget Study Session May 13, 2025
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Street Improvement Fund – The Street Improvement Fund supports the maintenance and improvement of street infrastructure and sidewalks throughout the City. Revenue comes primarily from gasoline taxes, grants, and Transportation Development Act (TDA) funds. Revenues are budgeted at $8.5 million for both FY 2025-26 and FY 2026-27.
Related expenditures for capital projects are included in the Proposed CIP Budget.
Grants Fund – The Grants Fund is used to account for federal and state grant revenues that support capital projects across the City. Revenues are budgeted at $6.1 million in FY 2025-26 and $3.7 million in FY 2026-27. Corresponding expenditures for capital projects are included in the Proposed CIP Budget.
Enterprise Funds
Water Fund – The City’s water system distributes up to 10 million gallons of water each day, serving approximately 17,000 customers. With the exception of a few small areas outside City limits, the City distributes water to 37 percent of the geographical area within its incorporated boundaries. The Proposed Water Fund Operating and Capital Budget is $51.6 million for FY 2025-26 and $51.9 million for FY 2026-27.
Prior Year
Actual
FY 2023-24
Projected
Actual
FY 2024-25
Proposed
Budget
FY 2025-26
Proposed
Budget
FY 2026-27
Revenue
Metered Water Sales 19,424,419$ 24,438,700$ 23,728,000$ 25,315,900$ Base Charges 6,209,881 7,074,700 7,300,000 7,575,000
Lift Charges 1,116,147 1,391,020 1,250,000 1,290,000
Plant Investment Fees 176,073 1,545,500 200,000 250,000 Interest Income 2,443,532 1,150,000 1,035,939 893,689
Miscellaneous Revenue 948,422 369,500 580,999 588,999
Total Revenue 30,318,474$ 35,969,420$ 34,094,938$ 35,913,588$ Appropriations
Salaries and Benefits 5,410,215$ 5,708,955$ 6,797,996$ 7,091,893$ Maintenance and Operations 19,324,246 20,861,300 26,846,082 27,864,194 Total Operating Requirements24,734,461$ 26,570,255$ 33,644,078$ 34,956,087$ Capital/Depreciation 2,706,997 10,212,084 17,280,000 16,900,000 Maintenance Improvements 585,545 80,000 700,000 37,750
Transfers to Other Funds - - - -
Total Requirements 28,027,003$ 36,862,339$ 51,624,078$ 51,893,837$ Reserve/(Use of Net Position) 2,291,471$ (892,919)$ (17,529,140)$ (15,980,249)$ Water Fund
(Operations/Capital)
Revenue: The Water Fund is primarily funded through metered water sales and base service charges. Revenues are budgeted at $34.1 million for FY 2025-26 and $35.9 million for FY 2026-27.
Proposed FY 2025-26 and FY 2026-27 Operating Budget Study Session May 13, 2025
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Appropriations: Proposed operating appropriations are budgeted at $33.6 million in FY 2025-26 and $35.0 million in FY 2026-27. The largest operating cost is the purchase of water from Calleguas Municipal Water District. In addition, capital and maintenance improvement requirements needs are estimated at $18.0 million for FY 2025-26 and $16.9 million for FY 2026-27 to support system reliability and infrastructure upgrades.
Wastewater Fund – Hill Canyon Treatment Plant (HCTP) serves over 37,000 wastewater accounts and provides service to approximately 90 percent of the City. HCTP treats an average of 10.5 million gallons of wastewater per day, supporting both environmental stewardship and public health. The Proposed Wastewater Fund Operating and Capital Budget is $39.3 million for FY 2025-26 and $36.3 million for FY 2026-27.
Prior Year
Actual
FY 2023-24
Projected
Actual
FY 2024-25
Proposed
Budget
FY 2025-26
Proposed
Budget
FY 2026-27
Revenue
Service Charges 21,390,408$ 21,486,038$ 24,880,000$ 26,127,500$ Connection Fees 312,869 1,730,545 475,000 475,000
Interest Income 3,178,563 729,500 1,020,238 880,144
Miscellaneous Revenue 1,007,517 1,233,432 1,211,700 1,203,700 Total Revenue 25,889,357$ 25,179,515$ 27,586,938$ 28,686,344$ Appropriations
Salaries and Benefits 9,584,314$ 9,154,435$ 10,287,482$ 10,702,644$ Maintenance and Operations 10,144,400 11,966,561 13,329,242 13,511,337 Total Operating Expenses 19,728,714$ 21,120,996$ 23,616,724$ 24,213,981$ Capital/Depreciation 5,550,553 13,462,047 9,739,200 9,048,000 Maintenance Improvements 1,024,868 1,785,352 5,908,600 3,012,750 Total Requirements 26,304,135$ 36,368,395$ 39,264,524$ 36,274,731$ Reserve Account (414,778)$ (11,188,880)$ (11,677,586)$ (7,588,387) Wastewater Fund
(Operations/Capital)
Revenue: The Wastewater Fund is primarily supported by residential and commercial service charges, along with capital revenue. Revenues are budgeted at $27.6 million for FY 2025-26 and $28.7 million for FY 2026-27.
Appropriations: Proposed operating appropriations total $23.6 million in FY 2025-26 and $24.2 million in FY 2026-27. In addition, capital and maintenance improvement projects are budgeted at $15.6 million and $12.1 million respectively, to support ongoing infrastructure upgrades and regulatory compliance at HCTP.
Solid Waste Fund – The Solid Waste Fund supports a variety of programs that promote environmental sustainability and community cleanliness, including the Recycling Program, the Household Hazardous Waste Program, Community Enhancement Program, Caltrans Adopt-A-Highway Program, and the Community Enhancement Grant Program as well as other sustainability initiatives.
Proposed FY 2025-26 and FY 2026-27 Operating Budget Study Session May 13, 2025
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Prior Year
Actual
FY 2023-24
Projected
Actual
FY 2024-25
Proposed
Budget
FY 2025-26
Proposed
Budget
FY 2026-27
Revenue
Residential Recycling 1,265,006$ 1,297,000$ 1,300,000$ 1,325,000$ Commercial Recycling 924,322 905,000 930,000 945,000
Landfill Facility Fee 312,052 299,000 345,000 350,000
Temporary Drop Box & Bin 132,978 126,500 150,000 150,000 Interest Income 293,149 149,500 178,622 154,095
Grants - Recycling and Hazardous Waste58,583 586,000 49,000 49,000 Other Revenue 270,297 262,000 218,500 306,000
Total Revenue 3,256,387$ 3,625,000$ 3,171,122$ 3,279,095$ Appropriations
Salaries and Benefits 781,709$ 805,856$ 781,159$ 785,617$ Maintenance and Operations 812,316 1,396,000 1,882,751 1,936,081 Total Operating Requirements 1,594,025 2,201,856 2,663,910 2,721,698 Capital/Depreciation 66,938 390,100 570,000 -
Transfers to Other Funds 250,000 283,000 300,000 325,000 Total Requirements 1,910,963$ 2,874,956$ 3,533,910$ 3,046,698$ Reserve/(Use of Net Position) 1,345,424$ 750,044$ (362,788)$ 232,397$ Solid Waste Fund
Revenue: The Solid Waste Fund receives revenues from multiple sources, including commercial recycling fees, landfill facility fees, residential recycling fees, temporary drop box and bin fees, and state grants that support recycling and hazardous waste programs. Proposed revenues are budgeted at $3.2 million in FY 2025-26 and $3.3 million in FY 2026-27.
Appropriations: Proposed appropriations total $3.5 million for FY 2025-26 and $3.0 million for FY 2026-27. These amounts include transfers of $0.3 million annually to reimburse the Stormwater Fund for trash cleanup each fiscal year.
Transportation Fund – The Transportation Fund supports local and regional transit aimed at reducing traffic congestion, improving air quality, and conserving energy. It funds the Thousand Oaks Transit (TOT) bus system and Dial-A-Ride services for residents throughout the Conejo Valley. In addition to serving Thousand Oaks, the fund also supports transportation services for the City of Westlake Village (Los Angeles County), City of Agoura Hills (Los Angeles County), Oak Park (unincorporated Ventura County), and City of Moorpark. Transit operations are contracted to MV Transportation, which provides both the fixed-route and demand-responsive services.
Based on the unprecedented impacts of the COVID-19 pandemic, state legislation was passed that provided relief for the farebox collection ratios required to obtain TDA funding.
The Proposed Budget assumes the continued relief of the farebox requirements. If the relief is no longer extended, staff will bring a request to City Council for farebox recovery subsidy.
Proposed FY 2025-26 and FY 2026-27 Operating Budget Study Session May 13, 2025
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Prior Year
Actual
FY 2023-24
Projected
Actual
FY 2024-25
Proposed
Budget
FY 2025-26
Proposed
Budget
FY 2026-27
Revenue
Sales Tax on Gasoline, SB325 4,206,039$ 5,075,263$ 4,182,500$ 4,182,500$ Federal and State Grants 3,438,960 2,753,345 8,222,534 8,277,534 Non-City Bus Services 202,174 120,292 210,000 210,000
Bus & Dial-A-Ride Fares 63,760 41,247 75,000 77,500
Other Revenue 210,783 106,886 317,823 166,352
Interest Income 345,075 161,850 152,671 131,707
Transfers From Other Funds - - - -
Total Revenue 8,466,791$ 8,258,883$ 13,160,528$ 13,045,593$ Appropriations
Salaries and Benefits 749,180$ 733,330$ 794,367$ 820,310$ Maintenance and Operations 7,223,333 7,737,326 8,362,850 8,775,160 Capital Outlay - - 50,000 50,000
Total Operating Requirements 7,972,513 8,470,656 9,207,217 9,645,470 Capital/Depreciation 831,657 1,076,986 7,585,750 8,824,000 Total Requirements 8,804,170$ 9,547,642$ 16,792,967$ 18,469,470$ Reserve/(Use of Net Position) (337,379)$ (1,288,759)$ (3,632,439)$ (5,423,877)$ Transportation Fund
Revenue: The Transportation Fund is supported by a variety of sources, primarily including sales tax on gasoline, SB325, and state and federal grants. Revenues are budgeted at $13.2 million for FY 2025-26 and $13.0 million for FY 2026-27.
Appropriations: The City contracts with MV Transportation to operate Thousand Oaks transit services. Proposed appropriations total $16.8 million in FY 2025-26 and $18.5 million in FY 2026-27, which includes capital improvements of $7.6 million and $8.8 million, respectively. While the Transportation Fund reflects a deficit due to planned capital investments, the City anticipates receiving grant funding to offset a significant portion of these costs. If grants are not awarded, capital projects will be delayed until funding is identified..
Theatres Fund – The Theatres Fund supports the operation and maintenance of the Civic Arts Plaza’s two theatres:
•The Fred Kavli Theatre is a premier,1,800-seat performing arts venue that hosts a wide range of performances from contemporary productions to classic works, including nationally renowned shows.
•The Janet and Ray Scherr Forum Theatre is a 400-seat venue that primarily serves the local community. It hosts community performances, bi-monthly City Council meetings, and other City-sponsored events and functions.
Proposed FY 2025-26 and FY 2026-27 Operating Budget Study Session May 13, 2025
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Prior Year
Actual
FY 2023-24
Projected
Actual
FY 2024-25
Proposed
Budget
FY 2025-26
Proposed
Budget
FY 2026-27
Revenue
Thetre Rentals and Fees 4,586,429$ 4,152,071$ 4,807,000$ 4,899,000$ Alliance for the Arts 530,604 541,216 542,000 552,840
Other Revenue 900,636 916,709 933,402 949,270
Total Revenue 6,017,669$ 5,609,996$ 6,282,402$ 6,401,110$ Appropriations
Salaries and Benefits 2,529,117$ 2,743,148$ 2,889,390$ 2,995,071$ Maintenance and Operations 2,948,422 2,752,054 3,337,429 3,442,277 Total Operating Requirements 5,477,539 5,495,202 6,226,819 6,437,348 Total Requirements 5,477,539$ 5,495,202$ 6,226,819$ 6,437,348$ Reserve/(Use of Net Position) 540,130$ 114,794$ 55,583$ (36,238)$ Theatres Fund
Revenue: The Theatres Fund generates revenue primarily through rentals and fees from performances and other events held at the Civic Arts Plaza. Revenues are budgeted at $6.3 million for FY 2025-26 and $6.4 million for FY 2026-27.
Appropriations: Proposed appropriations total $6.2 million in FY 2025-26 and $6.4 million in FY 2026-27. Given the variable nature of theatre operations and event-based revenue, staff will continue to monitor this fund closely and make adjustments as needed to maintain financial stability.
Golf Course Fund – Los Robles Greens Golf Course (LRGGC) is operated under a management agreement with Arcis Golf. Revenues are budgeted at $8.9 million in FY 2025-26 and $9.1 million in FY 2026-27, with appropriations of $8.5 million and $9.6 million, respectively. The Proposed Budget also includes an annual $0.1 million transfer to the Community Recreation and Open Space Fund in both fiscal years to support the preservation and maintenance of natural areas adjacent to the Golf Course.
Biennial Budget Preparation Timeline
•March 18, 2025 City Council Goal Setting Meeting
•March 24, 2025 User Fees to Finance Audit Committee •March 25, 2025 User Fees Study Session
•April 7, 2025 CIP Budget to Planning Commission •April 7, 2025 CIP Budget to Capital Facilities Committee •April 8, 2025 CIP Budget Study Session
•April 29, 2025 User Fees Public Hearing
•May 12, 2025 Operating Budget to Finance/Audit Committee •May 13, 2025 Operating Budget Study Session
•June 10, 2025 Operating & CIP Budget Public Hearing •June 24, 2025 GANN Appropriation Limit
Proposed FY 2025-26 and FY 2026-27 Operating Budget Study Session May 13, 2025
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Summary
The Proposed Budget represents a substantial yet strategic spending plan that maintains a structurally balanced General Fund while advancing key City Council priorities. It supports critical investments in infrastructure, sustainability, and homelessness services, and includes targeted staffing enhancements that align with the City’s long-term vision for innovation and technology.
The City remains in a strong and stable financial position. Guided by City Council’s priorities, strategic, long-range planning continues to shape investments in core services, infrastructure, and technology. This forward-looking approach emphasizes improving service delivery, enhancing efficiency, and ensuring the long-term preservation of essential systems and facilities.
While the economy remains uncertain amid ongoing inflation and the potential for a broader slowdown, the Proposed Budget is built with resilience in mind. Projections have been developed with caution to ensure the City remains agile and responsive to future economic changes.
Staff will continue to monitor revenue trends and expenditure levels. Any material developments will be brought forward to City Council, along with recommendations to preserve the City’s long-term fiscal health and stability.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
B. Provide municipal government leadership which is open and responsive to residents, and is characterized by ethical behavior, stability, promoting public trust, transparency, confidence in the future, and cooperative interaction among civic leaders, residents, business representatives, and staff, while recognizing and respecting legitimate differences of opinion on critical issues facing the City.
PREPARED BY: Carrie Matson, Deputy Finance Director
Ryan Roman, Budget Officer
Miguel Chavez, Sr. Financial Analyst
Document Provided Under Separate Cover:
#1 – Proposed FY 2025-26 and FY 2026-27 Operating Budget - To be provided in Supplemental Packet. The current FY 2023-24 and FY 2024-25 Operating Budget is available at: https://toaks.gov/budget FIN:330-40\cm\H:\COMMON\ADLFR\Budget\Budget 2025-2027\05132025 Operating Budget Study Session.docx