TO:Andrew P. Powers, City Manager
FROM:Jaime Boscarino, Finance Director
DATE:June 10, 2025
SUBJECT: Proposed FY 2025-26 and FY 2026-27 Operating and Capital Improvement Program Budgets
RECOMMENDATION:
1. Adopt resolution approving proposed Operating and Capital Improvement Program (CIP) Budgets for FY 2025-26 and FY 2026-27.
2. Adopt updated Financial and Budget Policies, including Governmental Fund balances and designations.
3. Authorize City Manager to carry over funds from FY 2024-25 to FY 2025-26 and from FY 2025-26 to FY 2026-27 for projects listed as requiring carryover included in the CIP Budget, Grants, and Maintenance and Operations Budgets.
4. Find that this action is not a project as defined under the California Environmental Quality Act (CEQA).
LEVINE ACT ITEM: No
FINANCIAL IMPACT:
No Additional Funding Requested. Total appropriations (Operating and CIP funding for all funds) are $303,036,377 for FY 2025-26 and $304,627,484 for FY 2026-27. The General Fund Budgets for both fiscal years are balanced for operations and use reserves for one-time expenditures and capital projects, per City Council Financial Policies.
Proposed FY 2025-26 and FY 2026-27 Operating and CIP Budgets June 10, 2025
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1 BACKGROUND:
The purpose of this public hearing is to provide City Council with an overview of the Proposed Operating and CIP Budgets (Proposed Budgets) for all funds. The Proposed Budgets will be available for review at https://www.toaks.gov/budget or by emailing the Finance Department at [email protected]. The Proposed Operating Budget will also be available in a new online format by visiting:
https://thousandoaks.openbook.questica.com/#/ (both Proposed Budget documents for the Public Hearing will be provided under separate cover via Supplemental Packet).
The City has a biennial budget process where every two years City Council reviews and adopts an Operating Budget and CIP Budget for two separate fiscal years. The City’s fiscal year begins July 1 and ends June 30.
Two-Year Budget Timeline
The biennial budget process began in October 2024 and involved input, strategic planning, and coordination among all departments. Below were the key dates in the 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 City Council Study Session
April 7, 2025 CIP Budget to Planning Commission
April 7, 2025 CIP Budget to Capital Facilities Committee April 8, 2025 CIP Budget City Council Study Session
April 29, 2025 User Fees City Council Public Hearing
May 12, 2025 Operating Budget to Finance/Audit Committee May 13, 2025 Operating Budget City Council Study Session June 10, 2025 Operating & CIP Budget City Council Public Hearing June 24, 2025 GANN Appropriation Limit to City Council City Council Goal Setting
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.
Proposed FY 2025-26 and FY 2026-27 Operating and CIP Budgets June 10, 2025
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1 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. Some highlights include:
Funding for the Thrive Grove Navigation Center to provide interim supportive housing for individuals experiencing homelessness; Funding to support the General Plan Zoning Code, Sign Program, and Specific Plan updates;
Funding for environmental sustainability efforts including Climate Environmental Action Plan (CEAP) implementation strategies, workshops, and outreach efforts, as well as a Municipal Energy Plan Update; Funding for Infrastructure investments to effectively maintain and improve City assets;
Funding for implementation of the Information Technology Strategic Plan including Enterprise Resource Planning (ERP) Scoping, development of a Data Management Plan, enhancing Disaster Recovery and Business Continuity, and a robust Project Management system;
Establishment of a standalone Information Technology Department with key positions added to support expanded responsibilities in data management, business support, performance measurement, and project management.
Proposed Operating and CIP Budget Study Sessions
Study sessions were conducted for both the Proposed Operating and CIP Budgets during which staff provided in-depth presentations outlining each budget. On April 8, 2025, staff presented City Council with the Proposed CIP Budget, highlighting projects focused on sustainability, infrastructure maintenance, fire resiliency, homelessness, and traffic circulation improvements. On May 13, 2025, staff presented City Council with the Proposed Operating Budget including the structurally balanced General Fund Budget, in which ongoing revenues are sufficient to cover the ongoing expenditures.
The study session presentations are located on the City’s website at https://toaks.gov/budget and provide detailed discussions on the Proposed Operating and CIP Budgets.
Public Hearing
The next step in the budget process is to conduct a public hearing for both the Proposed FY 2025-26 and FY 2026-27 Operating and CIP Budgets. Once the Proposed FY 2025-26 and FY 2026-27 Operating and CIP Budgets June 10, 2025
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1 public hearing has been completed and the necessary resolution adopted (Attachment #1), the FY 2025-26 budget will go into effect on July 1, 2025.
DISCUSSION/ANALYSIS:
The Proposed FY 2025-26 and FY 2026-27 Operating Budget is fiscally sound, complies with City Council’s Financial and Budget Policies, and allocates resources to advance City Council Goals and Top Priorities.
Total proposed appropriations for the City, including capital and transfers, for all funds are $303,036,377 for FY 2025-26 and $304,627,484 for FY 2026-27. The General Fund represents the largest portion of the overall budget, accounting for
40.3 percent of appropriations for FY 2025-26 and 41.7 percent for FY 2026-27.
Figure 1 below provides an overview of the Proposed Budgets by fund for each fiscal year.
Figure 1 – Proposed FY 2025-26 and FY 2026-27 Budget Summary by Fund
Proposed FY 2025-26 and FY 2026-27 Operating and CIP Budgets June 10, 2025
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1 Since the Operating and CIP Budget study sessions, staff has updated revenues based on revised projections and reviewed expenditures, position allocations, inter-fund transfers, and chargebacks between the various funds. The total impact of these revisions across all funds is a decrease to the overall Proposed Budget of $2.7 million in FY 2025-26 and $0.5 million in FY 2026-27, for a total decrease of $3.2 million. The changes to the Proposed Budget are discussed in further detail below.
General Fund
Figure 2 below summarizes the structurally balanced Proposed FY 2025-26 and FY 2026-27 General Fund Budget. In compliance with City Council Financial Policies, reserves are used for capital improvement projects to maintain facilities and infrastructure or other one-time operating expenditures.
Figure 2 – Proposed General Fund Budget
General FundPrior YearActualFY 2023-24
Projected Actual FY 2024-25
ProposedBudgetFY 2025-26
ProposedBudgetFY 2026-27Revenues and TransfersCurrent Revenues 118,091,928$ 110,020,616$ 112,370,695$ 114,642,157$ Transfers From Other Funds1,355,538 1,467,078 1,457,615 1,449,160 Total Revenues and Transfers119,447,466$ 111,487,694$ 113,828,310$ 116,091,317$ AppropriationsSalaries & Benefits38,909,672$ 41,670,061$ 47,096,516$ 50,474,918$ Police Contract Services32,967,590 34,255,964 36,850,006 38,708,506 Maintenance and Operations16,880,420 16,500,555 22,762,463 23,214,100 Capital Outlay 1,927,632 1,013,005 1,418,233 600,326 Total Operating Requirements90,685,314$ 93,439,585$ 108,127,218$ 112,997,850$ Capital Improvements7,264,307 5,104,684 4,282,000 11,241,000 Maintenance Improvements353,850 478,604 5,298,600 605,500 Transfers to Other Funds1,540,348 1,484,760 4,525,502 2,215,752 Total Estimated Requirements99,843,819$ 100,507,633$ 122,233,320$ 127,060,102$ Reserve / (Use of Fund Balance)19,603,647$ 10,980,061$ (8,405,010)$ (10,968,785)$ Since the May 13, 2025, City Council Study Session, proposed General Fund appropriations for FY 2025-26 decreased $4.9 million, while total proposed General Fund revenues increased $0.4 million. For FY 2026-27, proposed General Fund appropriations decreased $1.8 million, while proposed General Fund revenues increased $0.4 million.
The primary adjustments to the Proposed General Fund Operating Budget in FY 2025-26 are the additions of $50,000 for temporary staffing in the Human Resources Department and $125,000 for legal services in the City Attorney’s Office. In addition, sales tax revenue projections were increased by $363,850 in FY 2025-26 and $406,030 in FY 2026-27 based on updated estimates received from the City’s sales tax consultant.
Proposed FY 2025-26 and FY 2026-27 Operating and CIP Budgets June 10, 2025
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1 The Proposed General Fund Capital Improvement Project (CIP) Budget decreased by $5.0 million in FY 2025-26 and $1.8 million in FY 2026-27. The adjustments are mainly due to the reduction in budget for Downtown Thousand Oaks Project and Hodencamp Road Utility Undergrounding Project. Additional detail on all of the project revisions since the CIP Study Session are provided in Attachment #2 and in the Proposed CIP Budget section below.
Special Revenue Funds
The proposed appropriations for the Special Revenue Funds total $45.7 million in FY 2025-26 and $46.4 million in FY 2026-27. Since the May 13, 2025, City Council Study Session, Proposed Special Revenue Fund Budget appropriations decreased $0.8 million in FY 2025-26 and $0.3 million in FY 2026-27 for a total decrease of $1.1 million over both fiscal years. These adjustments are attributed to Capital Improvement Project revisions after the CIP Study Session.
Proposed Special Revenue Fund revenues increased by $0.2 million in FY 2025- 26 and $0.2 million in FY 2026-27 due to new statewide revenue estimates for Gas Tax provided by the California Department of Finance (DOF) with the release of the Governor's May Revision to the Proposed 2025-26 Budget on May 14, 2025.
Enterprise Funds
The proposed appropriations for the Enterprise Funds total $128.7 million in FY 2025-26 and $127.4 million in FY 2026-27. Since the May 13, 2025, City Council Study Session, Proposed Enterprise Funds Budget appropriations increased $2.8 million in FY 2025-26 and $1.7 million in FY 2026-27 for a total increase of $4.5 million over both fiscal years. These adjustments are primarily attributed to increases in the Transportation Fund’s Proposed CIP Budget. In addition, these adjustments include a $45,000 increase in Solid Waste Fund expenditures in both fiscal years for the Community Enhancement grants, which was added to the Solid Waste Fund Operating Budget after the Operating Study Session.
Proposed CIP Budget
The Proposed CIP Budget totals $80,368,359 for FY 2025-26 and $75,695,064 for FY 2026-27. Figure 3 below illustrates the Proposed CIP appropriations by project category for each fiscal year, including projected carryover from FY 2024-25 into FY 2025-26:
Proposed FY 2025-26 and FY 2026-27 Operating and CIP Budgets June 10, 2025
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1 Figure 3 - Proposed FY 2025-26 & FY 2026-27 CIP Budget No. Category Carryover FY 2025-26 FY 2026-27 Total
1 Wastewater 19,670,067$ 12,514,000 10,518,000$ 42,702,067$ 2 Water 6,828,395 17,065,000 16,750,000 40,643,395
3 Transportation/Traffic 13,494,651 14,720,730 12,101,064 40,316,445 4 Facility 5,531,674 8,372,775 13,961,000 27,865,449
5 Street 1,866,525 10,267,186 11,665,000 23,798,711
6 Stormwater 2,351,089 7,404,752 5,410,000 15,165,841
7 Landscape/Streetscape 2,190,000 5,180,000 4,840,000 12,210,000 8 Housing 4,574,550 - - 4,574,550
9 Undergrounding - 3,025,000 175,000 3,200,000
10 Open Space 30,000 1,718,916 75,000 1,823,916
11 Library - 100,000 200,000 300,000
Total 56,536,951$ 80,368,359$ 75,695,064$ 212,600,374$
Since the April 9, 2025, City Council CIP study session, there have been revisions to 16 projects: four projects have been added and two have been removed. The full list of revised, new, and removed projects are included in Attachment #2. A summary of the significant revisions are provided below:
MI 2667 - Hodencamp Road - Utility Undergrounding
After additional project scope refinement, the budget was reduced from $3.0 million to $2.0 million in FY 2025-26.
CI 5540 – Downtown Thousand Oaks Project
Based on additional analysis by the design consultant and staff, the FY 2025-26 $4.5 million budget for preliminary design was deleted as it is already encumbered on a purchase order, and the FY 2026-27 budget was reduced from $7.0 to $5.0 million.
MI 2515 - Unit E Interceptor at Ventu Park Road
This project was removed from the Proposed CIP Budget because staff are waiting for the results of the Wastewater Collection Master Plan to be completed to determine the exact limits and scope of work. This project will be reintroduced in the next budget cycle. Removing the project reduced the Wastewater Fund by $1.3 million in FY 2026-27.
CI 5722 - Purchase of Transit Vehicles
The City received Transit and Intercity Rail Capital Program (TIRCP) grant funding for additional bus purchases after the CIP Study Session. $2.6 million was added in both years (total of $5.2 million) for this project for the purchase and will be offset by grant revenue.
Proposed FY 2025-26 and FY 2026-27 Operating and CIP Budgets June 10, 2025
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1 Financial Policies and Procedures
Financial policies are central to a strategic, long-term approach to financial management. The Government Finance Officers Association (GFOA) recommends that local governments formally adopt certain financial policies including, but not limited to budget, debt, investment, and capital. These policies have been incorporated in Section IX (Financial Policies and Procedures) of the Proposed FY 2025-26 and FY 2026-27 Operating Budget. The Proposed Budget fully complies with City Council’s formal Financial and Budget Policies.
Staff has thoroughly analyzed the existing policies and compared the components to best practice guidelines established by GFOA. The Investment Policy is reviewed annually and presented to City Council for adoption separately and was last adopted on January 14, 2025. The Debt Policy is reviewed biennially and approved through the budget process unless substantive changes are suggested. Since no significant changes are being recommended, independent consideration is not required, and the amended policy may be adopted through the budget process.
Citywide Performance Measures
As part of citywide performance measures, the City tracks and reports performance measure data to provide statistical representation of goals and objectives. At the end of each fiscal year, performance measure results are collected and reported for both internal and external measures. The results are used to guide the City's focus and ultimately improve the City's effectiveness and efficiency in delivering services. City departments’ external performance measures will be included in the Adopted Operating Budget book, which is anticipated to be finalized and published in September 2025.
Summary
The Proposed Budget reflects 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 Proposed FY 2025-26 and FY 2026-27 Operating and CIP Budgets June 10, 2025
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1 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.
Acknowledgments
Preparation of the City’s Operating and CIP Budgets would not be possible without the leadership, dedication, and hard work from City Council, the Citywide Budget Team, and staff from all departments who spent considerable time working on the budgets. Staff have allowed for an efficient budget preparation process through cooperation and teamwork between all departments. A list of the City’s Budget Team is included in Attachment #3.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
A. Create a more equitable, accessible, safe, welcoming, and inclusive government and community regardless of race, color, ethnicity, religion, sex, physical or mental ability, sexual orientation, gender identity and expression, age, language, education, and/or socio-economic status.
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.
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
PREPARED BY: Carrie Matson, Deputy Finance Director
Ryan Roman, Budget Officer
Miguel Chavez, Senior Financial Analyst
Attachments:
Attachment #1 – Resolution Adopting Annual Operating and CIP Budgets for FY 2025-26 and FY 2026-27
Attachment #2 – Capital Improvement Program Revisions Since Study Session
Attachment #3 – Citywide Budget Team
Documents Provided Under Separate Cover:
#1 – Proposed FY 2025-26 and FY 2026-27 Operating Budget – To be provided in Supplemental Packet. The Proposed FY 2025-26 and FY 2026- Proposed FY 2025-26 and FY 2026-27 Operating and CIP Budgets June 10, 2025
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1 27 Operating Budget presented at the May 13, 2025, Study Session is available at https://toaks.gov/budget.
#2 – Proposed FY 2025-26 and FY 2026-27 CIP Budget – To be provided in Supplemental Packet. The Proposed FY 2025-26 and FY 2026-27 CIP Budget presented at the April 8, 2025, Study Session is available at https://toaks.gov/budget.
FIN:330-10\mc\H:\COMMON\Council\2025\Administration\061025 Operating and CIP Budget Staff Report.docx