NOTICE AND AGENDA
CITYOF UNION CITY
GARYSINGH, Mayor
SCOTT SAKAKIHARA, Vice Mayor (District 4)
LANCE NISHIHIRA, Councilmember (District 1)
JAIME PATIÑO,Councilmember (District 2)
JEFF WANG, Councilmember (District 3)
CITYCOUNCIL
SPECIAL MEETING
Tuesday,April 29, 2025
6:00 PM
CityCouncil Chambers | 34009Alvarado-Niles Road, Union City, CA94587
1. CALL TO ORDER
2. ROLL CALL
3. ORAL COMMUNICATIONS - Comments limited to items on the Special MeetingAgenda
4. STUDYSESSION
4.a. Discussion of FY2025-2026 & FY2026-2027 General Fund Revenues and Expenditures, Trends and Other Financial Information
5. ADJOURNMENT
/s/ Thai Nam Pham
Thai Nam Pham, MMC, CPMC
City Clerk
MEETING INFORMATION
Regular City Council meetings are held in person on the second and fourth Tuesday of each month at 7:00 p.m. in the Council Chambers, City Hall, 34009 Alvarado-Niles Road, Union City, CA 94587.
Meetings can also be observed via Zoom: http://citycouncil-live.unioncity.org Meetings are broadcast live on UCTV Channel 15 and live-streamed on the City's website:
https://www.unioncity.org/199/City-Meetings-Video.
Public Comment: Members of the public cannot provide comments via Zoom unless specifically permitted, as detailed below. Remote access is subject to technical availability. If the Zoom platform or other technology fails, the City Council will proceed with the meeting in person unless prohibited by law.
Public Records: Documents related to agenda items are available for review on the City's website (https://www.unioncity.org) or during business hours at the City Clerk's Office, 34009 Alvarado-Niles Road, Union City, CA 94587.
Accessibility: If you require special assistance to participate in the meeting, please contact the City Clerk's Office at (510) 675-5448 at least 72 hours before the meeting. Closed captioning is available for all regular City Council meetings.
ADDRESSING THE CITY COUNCIL
In-Person Public Comment:
Members of the public may address the Council on any agenda item or during the Public Input portion of the meeting.
To speak, please fill out a speaker card with your name and city of residence. If you would like a follow-up from the City, you may also provide your mailing address. Completing a speaker card and providing your name, city, or mailing address are not required to make a public comment but are requested for record-keeping purposes.
Written Comment:
To submit written comments on an agenda item or during Public Comment, please email:
[email protected]. Include "public comment" in the subject line and reference the agenda item number.
Written comments will be forwarded to the City Council and made publicly available.
Public Comment via Zoom:
As noted above, the public may not address the Council via Zoom unless required byAB 2449. If the City is required to provide this opportunity, the Mayor will announce it at the beginning of the meeting. If allowed, raise your virtual hand on Zoom to indicate that you would like to speak on a specific agenda item.
CITY COUNCIL NORMS AND GUIDELINES
(Resolution No. 6129-23;Adopted May 23, 2023)
The Union City Council abides by the following norms:
1. We conduct ourselves in a professional manner, treat everyone with respect, and act with high integrity, always putting the interests of the City of Union City ahead of self-interests in accordance with our code of ethics.
2. We respect the Council-Manager form of government, and do not interfere with the City Manager's role or any professional duties of City staff.
3. We recognize that matters of confidential nature are to be kept private and undisclosed.
4. We respect each other's opinions and are supportive of each other's work advocating for the City, and we ensure that all voices are heard. We do not criticize others for having a different point of view, and we agree to disagree respectfully.
5. We understand that the City Council acts as a body, all members are equal, and policy direction is only given by a majority vote of the City Council. Once a decision is made, all members of the City Council must respect the City Council's direction.
6. We will be prepared for City Council meetings and ask our questions of the City Manager in advance so we can avoid surprising City staff at meetings.
7. We do not criticize City staff publicly or to others and will refrain from directing them. Instead, we will take our concerns and questions privately to the City Manager.
8. We will govern on an at-large basis, although elected by districts. We will maintain a citywide perspective and consider the needs and interests of the entire community.
9. We will continue to allocate resources based on long-term strategic priorities and efforts, with consideration of citywide service levels and financial capacity.
10. We understand customer service is the priority and each member of the City Council will help constituents regardless of the district in which they reside or from which a Councilmember themselves is elected.
11. We recognize the significant importance of attendance and participation at City Council meetings in proceeding with City business. All members of the City Council should endeavor to miss no more than two regular meetings per calendar year absent extraordinary circumstances. Members of the City Council should, absent unforeseen circumstances, provide a minimum of sixty days' notice to the City Council of planned absences during the Good of the Order or Items Referred by Council portion of the City Council agenda, as appropriate.
May these Council Norms be administered and enforced in the following manner:
1. Councilmembers have the primary responsibility to assure that ethical standards are understood and met by the Council, and that the public can continue to have full confidence in the integrity of government.
2. The Mayor and the Council have the responsibility to intervene when action of its members are in violation of Council Norms.
3. The City Council can review and revise the Council Norms as needed.
4. During City Council discussions, deliberations, and proceedings, the Mayor is designated with the primary responsibility to ensure that Councilmembers adhere to the Council Norms.
CERTIFICATION OF MEETING NOTICE AND AGENDAPOSTING
This notice and agenda were posted on the City's website and the City Hall bulletin board at least 24 hours prior to the meeting date, in compliance with the Ralph M. BrownAct. /s/Thai Nam Pham, MMC, CPMC
City Clerk/Secretary to the City of Union City Successor Agency Agenda Item
ATTACHMENTS:
Description Type
Staff Report Attachment
PowerPoint Presentation Attachment
Agenda Item
DATE: 4/29/2025
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: JOAN MALLOY, CITY MANAGER
SUBJECT: DISCUSSION OF FY 2025-2026 & FY 2026-2027 GENERAL FUND
REVENUES AND EXPENDITURES, TRENDS AND OTHER FINANCIAL
INFORMATION
EXECUTIVE SUMMARY
Staff recommend that the City Council hear a presentation and discuss the FY 2025-2026 & FY 2026-2027 General Fund revenues and expenditures trends and other financial information.
STRATEGIC PLAN
This staff report aligns with Goal A: Financial Stability and Sustainability.
DISCUSSION
Source: Common Claims About Proposition 13 (2016) – Legislative Analyst’s Office Proposition 13 passed by California voters in 1978 forever changed city budgets. Prior to 1978, cities and counties balanced their budgets with a property tax formula. The property tax that property owners paid could increase dramatically year over year, creating hardship for those with fixed incomes. Proposition 13 capped property tax rates at 1% of assessed valuation, with annual inflation increases of no more than 2%. The passage of Proposition 13 immediately reduced property tax payments from homes, businesses and farms by 57%, and it took California 20 years to recover from the decrease of property tax revenues. Proposition 13 created a gap between property market values and assessed values, and the two will never be the same again.
To offset the revenue shortfall, municipalities increasingly rely on other taxes and fees to provide essential services. Table 1 below shows that cities within Alameda County now rely on a variety of taxes. This table shows that Union City receives the lowest property tax per capita in the County, and second lowest combined taxes per capita.
Table 1 – Per Capita Tax Information for Cities in Alameda County City Population
Property
Taxes
Property
Taxes In
Lieu of
VLF
Sales &
Use
Taxes TOT
Franchise
s
Business
License
Taxes
Utility
Users’
Taxes
Combine
d Taxes
per
Capita
Alameda 78,280 $837 $128 $150 $33 $48 $28 $115 $502
Albany 20,271 $695 $111 $241 $3 $36 $39 $94 $524
Berkeley 124,321 $1,216 $121 $152 $56 $15 $217 $121 $682 Dublin 72,589 $661 $112 $360 $17 $82 $2 $- $574
Emeryville 12,905 $459 $83 $665 $349 $174 $747 $262 $2,279 Fremont 230,504 $420 $119 $388 $20 $50 $51 $- $628
Hayward 162,954 $417 $111 $390 $16 $68 $19 $106 $710
Livermore 87,955 $485 $111 $454 $37 $67 $88 $- $756
Newark 47,529 $434 $123 $331 $87 $101 $33 $79 $754
Oakland 440,646 $1,132 $132 $136 $48 $46 $230 $131 $723 Piedmont 11,270 $1,969 $131 $33 $- $51 $57 $108 $380
Pleasanton 79,871 $921 $97 $307 $46 $38 $66 $- $555
San
Leandro 91,008 $366 $102 $443 $8 $65 $83 $128 $829
Union City 70,143 $232 $113 $171 $21 $54 $25 $66 $451
source: www.sco.ca.gov (2021) & Bing/Wikipedia
Balancing the FY26 and FY27 budget is a challenging task for Union City. Table 2 below shows that Union City taxes make up 85% of total General Fund revenues for FY26 and 84% of total General Fund revenues for FY27. The 7.4% increase in total General Revenues, from $79.5 million in FY25 to $85.3 million in FY25 will take some effort. Staff will emphasize business license tax enforcement of Measure QQ, increasing cost recovery for charges for services and license & permits, and one-time revenue reconciliations of demolition deposits.
The 4.7% increase between FY26 and FY27 includes anticipated development which increases building permits and other development related fee revenues. $-
$500
$1,000
$1,500
$2,000
$2,500
Combined Taxes Per Capita
Table 2 – General Fund Revenues by Category
For FY26 and FY27, staff projects 4% increases in property tax revenues. In Union City, having property tax as its largest revenue source provides some financial stability, however, the low per capita property tax base means the City must work hard every year to secure enough other revenues to pay for essential services.
Table 3 below compares how much a city keeps from every property tax dollar paid by a property owner. Comparing homeowners paying $10,000 in property taxes in Berkeley and Union City, the City of Berkeley will receive $3,246 from its homeowner, while the City of Union City will only receive $1,600. This inequity was the result of Proposition 13. Other factors affecting property tax revenues are the physical size of the city, and the land use type.
Draft Projected Projected Projected
Revenue Sources (General Fund) FY23 Actual FY24 Year End FY25 Year End FY26 Year End FY27 Year End Property Tax 19,888,365 21,115,479 22,107,500 22,993,800 23,912,100 Property Tax in lieu of VLF 8,472,448 9,035,866 9,477,000 9,846,400 10,241,300 Sales Tax - Bradley Burns 12,456,279 11,464,078 11,113,100 11,532,500 11,759,200 Sales Tax - Measure AA 7,174,437 6,918,301 6,506,400 6,605,000 6,736,000 Transient Occupancy Tax 1,832,773 1,545,226 1,590,200 1,637,900 1,687,000 Franchise Tax 5,825,882 6,386,526 6,561,600 6,741,900 6,931,400 Business License Tax 1,897,354 2,359,247 2,600,000 4,800,000 4,800,000 Real Property Transfer Tax 322,712 280,526 396,900 396,900 396,900 Utility Users' Tax 6,295,863 6,596,476 6,909,700 7,246,800 7,609,600 Cannabis Tax 688,917 586,986 578,700 596,100 614,000
Charges for Services 2,638,319 2,568,920 2,950,734 3,158,250 3,249,350 Licenses & Permits 2,977,876 3,740,793 3,566,900 4,737,800 7,271,000 Fines & Forfeitures 263,941 347,567 258,800 265,700 272,800 Intergovernmental Revenues 785,277 1,040,588 837,964 754,200 770,500 Investment & Rental Income 1,538,217 2,507,790 2,581,200 2,656,800 2,734,600 Miscellaneous Revenues 862,890 235,608 611,500 1,053,100 54,600 Proceeds from the Sale of Property 2,137 9,781 2,000 2,000 2,000 Transfers-In 7,049,913 818,000 818,000 318,000 318,000
TOTAL REVENUES 80,973,601 77,557,758 79,468,198 85,343,150 89,360,350 Property Tax Property Tax in lieu of VLF
FY19 Actual 16,268,752 FY19 Actual 6,946,434
FY20 Actual 17,225,697 5.88% FY20 Actual 7,288,199 4.92% FY21 Actual 17,589,175 2.11% FY21 Actual 7,681,033 5.39% FY22 Actual 18,224,515 3.61% FY22 Actual 7,894,566 2.78% FY23 Actual 19,888,365 9.13% FY23 Actual 8,472,448 7.32% FY24 Draft 21,115,479 6.17% FY24 Draft 9,035,866 6.65%
FY25 Projected 22,107,500 4.70% FY25 Projected 9,477,000 4.88% FY26 Projected 22,993,800 4.01% FY26 Projected 9,846,400 3.90% FY27 Projected 23,912,100 3.99% FY27 Projected 10,241,300 4.01% Table 3 – City Share of Total Property Tax Revenues
City Population
City
Share
City Property
Tax Revenues
City Property
Taxes In Lieu
of VLF
Revenues
Berkeley 124,321 32.46% $151,230,000 15,010,000
Piedmont 11,270 30.39% 22,200,000 1,480,000
Oakland 440,646 26.69% 499,030,000 58,290,000
Alameda 78,280 25.66% 65,500,000 10,050,000
Pleasanton 79,871 25.62% 73,570,000 7,750,000
Dublin 72,589 23.57% 47,950,000 8,150,000
Albany 20,271 19.43% 14,100,000 2,250,000
Livermore 87,955 18.00% 42,650,000 9,740,000
Emeryville 12,905 17.05% 5,920,000 1,080,000
Newark 47,529 16.77% 20,640,000 5,850,000
Hayward 162,954 16.19% 67,940,000 18,020,000
Union City 70,143 16.00% 16,270,000 7,890,000
Fremont 230,504 14.50% 96,850,000 27,340,000
San Leandro 91,008 11.79% 33,270,000 9,280,000
source: HdL 2024 Q2 report, www.sco.ca.gov (2021) & Bing/Wikipedia Interestingly, revenues from property taxes in lieu of VLF was a State change made in 2004 which replaced lost vehicle license fees with property tax revenues, yet they do not align with the City’s share of property tax revenues. Staff can confidently predict property tax revenue increases year over year. The assessed value of homes in California rarely decreases, and with Proposition 13, homeownership turnover leads to greater property tax revenue increases.
Additionally, the City is anticipating significant housing and commercial development to occur starting in FY27. The completion and sale of these developments will increase the City’s property tax base.
The volatility of sales tax makes it a challenge to balance the City’s budget, especially when revenues decrease, while expenditure increases. Fortunately, a recent report from Avenu Insights, the City’s sales tax consultant, projected sales tax increasing for FY26 and FY27.
To improve Union City’s sales tax base and fiscal stability, staff see economic development as an area of focus, growing and diversifying the business environment within the City. More Sales Tax - Bradley Burns Sales Tax - Measure AA FY19 Actual 10,878,886 FY19 Actual 5,491,347
FY20 Actual 9,989,135 -8.18% FY20 Actual 5,595,634 1.90% FY21 Actual 10,851,824 8.64% FY21 Actual 6,249,677 11.69% FY22 Actual 12,010,454 10.68% FY22 Actual 7,148,865 14.39% FY23 Actual 12,456,279 3.71% FY23 Actual 7,174,437 0.36% FY24 Draft 11,464,078 -7.97% FY24 Draft 6,918,301 -3.57% FY25 Projected 11,113,100 -3.06% FY25 Projected 6,506,400 -5.95% FY26 Projected 11,532,500 3.77% FY26 Projected 6,605,000 1.52% FY27 Projected 11,759,200 1.97% FY27 Projected 6,736,000 1.98% businesses not only give our residents greater opportunity to shop in town, they should also capture sales and use tax revenues from out-of-town patrons.
In November 2024, the community voted to pass Measure QQ, amending the City’s Business License Tax Ordinance, transitioning to a gross receipts-based business tax rate. This makes the tax more equitable among business types, and proportional to the amount of revenues generated. While the total business tax license revenue potential, based on the new gross receipts-based tax rate, is uncertain until after several years of implementation, staff plans to fully enforce and collect the taxes starting in FY26. The new business license tax revenue is needed to provide essential city services.
Utility users’ tax is a resilient revenue source for the City, and staff projects stable Utility users’ tax revenue growth. Measure WW, a 5% utility users’ tax on electricity, gas, video and telecommunication services, was approved by 57% of local voters in the November 2020 election. UUT revenues are projected to be $7.2 million in FY26, and $7.6 million for FY27.
Unless renewed by voters, this funding will automatically expire on December 31, 2028. The attached chart shows the utility users’ tax rates of the 158 cites, 4 counties and one special district, in 2021.
Business License Tax Utility Users' Tax
FY19 Actual 1,713,983 FY19 Actual -
FY20 Actual 1,851,849 8.04% FY20 Actual -
FY21 Actual 1,739,458 -6.07% FY21 Actual 1,026,166
FY22 Actual 1,787,652 2.77% FY22 Actual 5,285,251 415.05% FY23 Actual 1,897,354 6.14% FY23 Actual 6,295,863 19.12% FY24 Draft 2,359,247 24.34% FY24 Draft 6,596,476 4.77%
FY25 Projected 2,600,000 10.20% FY25 Projected 6,909,700 4.75% FY26 Projected 4,800,000 84.62% FY26 Projected 7,246,800 4.88% FY27 Projected 4,800,000 0.00% FY27 Projected 7,609,600 5.01% Charges for Services include development plan reviews and inspections, community services classes and programs, and other user fees for services. Licenses and Permits include building permits, fire permits, and parking permits. These two categories are heavily dependent on design standards and quality of life standards within the City. For FY26, City staff plans to conduct a comprehensive user fee study to improve cost recovery for user fees and permit revenues. For FY27, anticipated development should occur, increasing building permits as well as other development-related fees and applications.
Investment income has grown over the years due to interest rates as well as portfolio size.
For FY26 and FY27, staff project a 2.93% increase in investment earnings.
For FY25 fines & forfeitures are expected to be less than projected due to the City Council’s direction to staff to not enforce parking restrictions in the Station District. Staff anticipates similar fines and forfeitures revenues for FY26 and FY27, unless policy direction changes.
Staff have identified a one-time reconciliation of demolition deposits, which we will occur in FY26. This will provide approximately $1 million in revenues to cover essential city expenditures in FY26, but this revenue goes away in FY27. For FY26 and FY27, staff eliminated the unjustified $500,000 transfer in from the Workers’ Compensation Fund.
Charges for Services Licenses & Permits
FY19 Actual 2,639,800 FY19 Actual 2,713,908
FY20 Actual 3,320,884 25.80% FY20 Actual 3,283,961 21.00% FY21 Actual 1,957,665 -41.05% FY21 Actual 2,586,183 -21.25% FY22 Actual 2,417,512 23.49% FY22 Actual 3,086,088 19.33% FY23 Actual 2,638,319 9.13% FY23 Actual 2,977,876 -3.51% FY24 Draft 2,568,920 -2.63% FY24 Draft 3,740,793 25.62% FY25 Projected 2,950,734 14.86% FY25 Projected 3,566,900 -4.65% FY26 Projected 3,158,250 7.03% FY26 Projected 4,737,800 32.83% FY27 Projected 3,249,350 2.88% FY27 Projected 7,271,000 53.47% Investment & Rental Income Fines & Forfeitures
FY19 Actual 399,705 FY19 Actual 564,295
FY20 Actual 536,213 34.15% FY20 Actual 340,971 -39.58%
FY21 Actual 592,162 10.43% FY21 Actual 171,719 -49.64%
FY22 Actual 700,669 18.32% FY22 Actual 213,191 24.15%
FY23 Actual 1,538,217 119.54% FY23 Actual 263,941 23.81% FY24 Draft 2,507,790 63.03% FY24 Draft 347,567 31.68%
FY25 Projected 2,581,200 2.93% FY25 Projected 258,800 -25.54% FY26 Projected 2,656,800 2.93% FY26 Projected 265,700 2.67% FY27 Projected 2,734,600 2.93% FY27 Projected 272,800 2.67% Overall, staff is projecting necessary revenue growth to meet the demands of essential General Fund services. For FY26, there was an approximate $3 million funding gap in the General Fund, for which we will depend on increased business license tax revenues, and one-time revenues to balance the budget. For FY27, revenue increases from developmentrelated fees and permits will cover that year’s expenditures, however there will be issues if the development is delayed into the future.
General Fund Expenditures
A lot of changes are proposed for FY26 and FY27 from the current FY25 General Fund expenditures. These changes mostly increase expenditures, decrease a few, and restate expenditures in some cases. The following list summarizes the fiscal impact:
• Increase in MOU salaries and benefits
• Budgeting of savings from vacant positions in FY26 & FY27 • Increase in CalPERS UAL expenses
• Increase in professional/consulting expenses
• Increase in fire services contract
• Decreasing workers’ compensation charges
• Increase in general liability charges
• Purchases of additional vehicles for ECD and Police
• Better categorized operating expenses from one-time expenses Miscellaneous Revenues Transfers-In
FY19 Actual 1,298,103 FY19 Actual 259,196
FY20 Actual 257,206 -80.19% FY20 Actual 1,266,773 388.73% FY21 Actual 265,414 3.19% FY21 Actual 1,250,000 -1.32%
FY22 Actual 751,179 183.02% FY22 Actual 7,299,913 483.99% FY23 Actual 862,890 14.87% FY23 Actual 7,049,913 -3.42% FY24 Draft 235,608 -72.70% FY24 Draft 818,000 -88.40%
FY25 Projected 611,500 159.54% FY25 Projected 818,000 0.00% FY26 Projected 1,053,100 72.22% FY26 Projected 318,000 -61.12% FY27 Projected 54,600 -94.82% FY27 Projected 318,000 0.00% $-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
$100,000,000
FY19
Actual
FY20
Actual
FY21
Actual
FY22
Actual
FY23
Actual
FY24 Draft FY25
Projected
FY26
Projected
FY27
Projected
General Fund Revenues
• Better categorized departmental expenses versus non-departmental expenses Looking at the Salaries and Wages category in Table 4 below, the Draft Proposed FY26 Budget and Draft Proposed FY27 Budget show increases compared to prior years. This is due to MOU increases, several job reclassifications, and the standard practice of proposing full staffing for all positions (and having no vacancies).
Table 4 – General Fund Expenditures by Category
For Employee Benefits, there was a decrease from FY23, of $18.4 million, to FY24, of $16.8 million, and then increases to $17.8 million in FY25, $18.5 million in FY26 and $19.5 million in FY27. FY23 CalPERS expenses of $12.8 million decreased to $3.9 million in FY24, however the City began paying the CalPERS UAL in FY24. Unfortunately, the CalPERS UAL payment increases year over year. Year over year changes to Health Insurance expenses are dependent on the number of active positions, as well as the health insurance plans chosen by the employees. Proposed FY26 and FY27 health insurance expenses are higher than prior years because the new MOUs provide employees with a higher monthly health care allowance, and these years project for full staffing.
Draft Projected Draft Proposed Draft Proposed
Expenditures By Category FY23 Actual FY24 Year End FY25 Year End FY26 Budget FY27 Budget 5A-Salaries and Wages 24,827,092 27,864,147 26,888,090 29,563,212 30,569,218 5B-Employee Benefits 18,374,973 16,811,192 17,791,770 18,462,575 19,540,395 5C-Supplies 617,740 457,637 484,250 773,394 761,726
5D-Services 23,675,034 27,810,450 30,573,972 31,463,431 32,856,782 5F-Debt Service - - - - -
5G-Lease Obligation 810,759 753,814 758,666 758,666 758,666 5i-Capital Assets 963,287 (16,494) 282,479 373,079 697,766 5J-Interest Non-Debt - - - - -
5K-Other Expenses - - - - -
5L-Transfer Out 1,480,900 4,959,796 4,159,561 3,674,834 3,756,916 4X-OthrFinancingSources (217,658) - - - -
TOTAL EXPENDITURES 70,532,128 78,640,542 80,938,788 85,069,191 88,941,468 Draft Projected Draft Proposed Draft Proposed
5A-Salaries and Wages FY23 Actual FY24 Year End FY25 Year End FY26 Budget FY27 Budget 51110 Regular Pay 21,327,193 23,849,961 22,508,890 28,404,062 29,381,679 51111 Regular Part-Time Pay 1,118,944 898,215 699,610 548,762 556,993 51112 Seasonal Part-Time/Temp Pay 7,221 511,671 783,500 492,398 492,398 51113 Holiday Pay 472,816 538,124 509,670 656,999 677,157 51115 Overtime Pay 1,749,761 1,909,375 2,251,550 1,595,885 1,595,885 51117 Uniform/Auto/Cell Allowance 145,205 148,661 128,040 158,276 158,276 51118 Meal Allowance 5,954 8,139 6,830 6,830 6,830
51130 Anticipated Salary Savings - - - (2,300,000) (2,300,000) 51999 Budgetary Adjust-CRS Salaries - - - - -
5A-Salaries and Wages 24,827,092 27,864,147 26,888,090 29,563,212 30,569,218 Workers’ Compensation expenses show a dramatic decrease in FY26 and FY27 because the Workers’ Compensation Internal Service Fund is adequately funded. Staff is using this opportunity to reduce Workers’ Compensation expenses to balance the General Fund budget, however these expenses will need to increase by $2 million within 3-5 years.
Expenses in General Fund supplies are reasonable when compared to prior years. For the firearms and supplies account, the Police Department plans to replace current firearms with new ones in FY26 and FY27. The Police Department’s other operating supplies make up approximately $100,000 of the $186,000, and this account covers a variety of departmental expenses. To simplify budget analysis and financial processing, the Finance staff plan to retire some of the account codes and combine their budgeted expenses with other line items.
The table below is a partial list of services accounts. Overall, service expenses are increasing year over year, mostly due to inflation. Within the Contractual Services line item is the Alameda County Fire District (ACFD) fire services contract, and its increases are shown later in this report. Janitorial services were also part of contractual services in FY23 but separated out in FY24 through FY27. Legal services are proposed to remain unchanged for FY26 and FY27. Election services occur every other year at approximately $250,000.
Draft Projected Draft Proposed Draft Proposed
5B-Employee Benefits FY23 Actual FY24 Year End FY25 Year End FY26 Budget FY27 Budget 52110 Medicare Tax 351,397 392,070 370,810 419,816 434,111 52111 PERS 12,796,871 3,864,883 3,499,240 4,123,929 4,252,927 52112 Health Insurance 2,930,104 3,230,886 3,073,870 3,972,961 4,001,097 52113 Workers Compensation (ISF) 2,020,878 2,273,638 2,158,920 360,468 747,371 52114 Deferred Compensation 53,313 63,917 64,430 59,802 61,057 52115 Disability Insurance 37,857 42,613 43,290 46,258 46,408 52116 Unemployment Insurance 6,217 13,732 33,180 - -
52117 Cal-Veba 22,744 25,993 23,080 23,080 23,080
52118 POA Retiree Medical-City Match 155,591 175,593 165,260 200,000 200,000 52120 CalPERS UAL Payment - 6,727,868 8,359,690 9,256,261 9,774,345 52999 Budgetary Adjust-CRS Benefits - - - - -
5B-Employee Benefits 18,374,973 16,811,192 17,791,770 18,462,575 19,540,395 Draft Projected Draft Proposed Draft Proposed
5C-Supplies FY23 Actual FY24 Year End FY25 Year End FY26 Budget FY27 Budget 53101 Office Supplies (Excluding Paper) 36,688 37,099 52,790 69,613 69,703 53102 Data Processing Supplies 20,064 24,508 27,510 29,950 29,950 53103 Photo Supplies (RETIRE) 6,331 2,163 18,930 14,233 14,233 53104 Books (RETIRE) 17,931 2,657 3,330 11,293 10,293
53105 Election Materials 99 775 200 1,000 100
53201 Firearms & Supplies 121,968 89,318 98,320 160,462 160,462 53202 K-9 Provisions 26,593 15,922 4,510 16,313 16,313
53203 Medical Supplies (RETIRE) 1,090 61 - 2,075 2,075
53301 Fuel (Gasoline, Etc) 2,714 4,228 3,800 - -
53401 Janitorial Supplies 4,063 2,312 1,160 11,930 11,930 53402 Building Supplies 52,618 57,493 82,690 90,500 90,500 53504 Traffic Safety 8,042 2,606 7,900 19,000 11,741
53601 Recreational Supplies 23,109 17,492 15,840 45,900 45,900 53701 Other Operating Supplies 166,292 131,720 76,360 186,075 183,475 53702 Rain Gear/Uniform Acces 4,851 3,794 3,040 13,750 13,750 53703 Safety Supplies 78,665 28,311 64,620 70,000 70,000 53704 Small Tools (RETIRE) 274 550 550 1,150 1,150
53801 Paper Supplies (SB1383) 46,345 36,600 22,700 27,150 27,150 5C-Supplies 617,740 457,637 484,250 773,394 761,726
Proposed for FY26 and FY27, the risk management (ISF) line was added to all department program budgets so that we can better evaluate the full cost of program operations. In prior years, the similar amount was transferred from the Finance Department’s General Fund budget to the General Liability Internal Service Fund (ISF) to pay for insurance premiums.
Utilities expenses were separated in FY24, and as expected, are increasing year over year.
Shown below is a partial list of Other Expenses within the General Fund. Other capital equipment expenses are mostly IT related expenses. For FY26, motor vehicles are for two police motorcycles and a vehicle for the Neighborhood Preservation Specialist. For FY27, staff propose setting aside $200,000 for the needed fire apparatus. The capital lease expenses are for network infrastructure, a fire truck, and energy conservation/efficiency.
Table 5 on the following page presents General Fund Expenditures by Department and Program. The Non-Department expenses are comprised of transfers out of $1,695,000 and anticipated salary savings of ($2,300,000). The City Council program shows an increase in FY26 and FY27 for a planned City Council Retreat and Team Building, Strategic Plan and Townsend Public Affairs consulting. The Community Relations program shows a spike in FY26 for community polling/survey. Draft Projected Draft Proposed Draft Proposed 5D-Services (Partial List) FY23 Actual FY24 Year End FY25 Year End FY26 Budget FY27 Budget 54110 Professional/Consulting 1,010,716 2,041,908 2,172,719 2,668,584 3,050,854 54111 Contractual Services 18,122,317 20,236,238 21,508,203 20,138,290 20,687,119 54112 Legal Services 589,477 627,012 705,301 705,301 705,301 54118 Sub-grants 251,408 240,303 400,977 258,147 258,147 54121 Election Services 260,354 415 250,000 500 262,500 54123 Repair/Maint-Radios 86,940 93,191 173,734 144,072 151,276 54124 Repair/Maint-Other 125,089 206,480 316,565 364,264 327,364 54127 Fleet-Vehicle Replace (ISF) 294,829 434,858 436,200 436,200 436,200 54130 Janitorial Services - 540,373 555,000 555,000 555,000 54135 Hardware & Software Maint - 118,823 186,371 206,796 215,860 54143 Risk Management (ISF) - - - 1,954,932 2,171,979
54206 Cell Phone 119,902 190,803 216,045 218,745 217,245 54207 Data Circuits 172,056 222,486 181,323 131,323 131,323 54212 Utilities 745,232 (7,644) - - -
54214 Paper Printing Svcs (SB1383) 53,832 67,462 127,687 142,369 122,369 54215 Membership Dues 100,523 122,705 123,741 135,222 135,222 54235 Electricity - 505,093 555,600 598,550 625,350
54236 Natural Gas - 27,743 30,500 32,000 33,600
54237 Water - 228,685 251,500 385,200 386,600
54238 Sewer - 45,793 50,400 57,205 59,105
Draft Projected Draft Proposed Draft Proposed
Other Expenses (Partial List) FY23 Actual FY24 Year End FY25 Year End FY26 Budget FY27 Budget 57125 Building Improvements - 23,054 - - 36,900
57130 Other Capital Equipment 745,629 (70,652) 235,479 234,579 216,366 57140 Motor Vehicles (NEW) - 6,399 1,000 95,000 201,000 57160 Computer & Technology Equipment - - - - 200,000
57170 Furniture & Fixtures - 14,939 46,000 43,500 43,500 58310 Capital Lease-Principal 623,359 651,728 681,089 681,089 681,089 58320 Capital Lease-Interest 125,601 102,086 77,577 77,577 77,577 59101 Transfer Out 1,480,900 4,959,796 4,159,561 3,674,834 3,756,916 The City Manager program FY27 budget proposes a Facilities Master Plan. The City Attorney’s program expenses are relatively flat, and the City Clerk’s budget shows a spike every other year due to election expenses. For Finance, the Risk Management transfer out was removed from Finance and added the line-item budget within each department/program.
The FY26 budget includes business tax assistance as we are responsible for enforcing Measure QQ.
The Human Resources and Information Technology budgets are status quo. The Police Department have several personnel changes which include a conversion of several cadets to Community Service Aide positions. FY26 also retired the Deputy Police Chief position, returning it to one of the two frozen Police Officer positions. Fire services provided by the Alameda County Fire Department has increased in costs, from $11.7 million in FY23 to an estimated $15.2 million in FY27.
The Public Works Department proposes adding a Principal Civil Engineer in FY27 to assist with the upcoming development projects, and a Maintenance Worker I to help with ground maintenance. Economic & Community Development proposes reducing contracted staffing in FY26 so that they can add a second Building Permit Technician. The Community & Recreation Services department proposes no significant changes.
The City recently updated its finance software (Enterprise Resource Planning software), and this gave Finance staff the opportunity to modify our account numbers for better reporting.
The new chart of accounts now have the following departments:
60 – Debt Service Programs
70 – RDA/Successor Agency Programs
80 – Citywide Programs (Non CIP)
90 – Capital Improvement Projects (PW)
Prior to this change some of these related expenses were tracked in the operating department budgets, making it difficult to analyize.
Table 5 – General Fund Expenditures by Department and Program Draft Projected Draft Proposed Draft Proposed
Org Code Program Title FY23 Actual FY24 Year End FY25 Year End FY26 Budget FY27 Budget 110-00000 GENERAL FUND 1,480,900 2,779,753 969,491 (605,000) (605,000) 00-Non-Departmental Subtotal 1,480,900 2,779,753 969,491 (605,000) (605,000) 110-11001 City Council 214,306 348,430 389,770 561,063 562,681 110-11021 Planning Commission 51,085 23,367 37,040 39,089 39,444 110-11022 Leisure Commissions 6,954 9,181 14,540 13,232 13,232 110-11023 Leisure Youth Commission - 1,611 2,500 2,500 2,500 110-11024 Human Relations Commission 5,043 3,182 1,820 1,000 1,000 110-11041 Community Relations 84,223 268,293 87,870 257,500 81,500 11-City Council Subtotal 361,611 654,065 533,540 874,384 700,357 110-12001 City Manager 1,467,674 1,688,609 1,825,843 1,830,114 2,263,124 110-12030 Cyber Outage - (3,324) - - -
110-12040 Emergency Services 105,219 178,889 322,020 267,570 268,848 110-12301 Solid Waste Mgmt - 128,787 118,320 - -
12-City Manager's Office Subtotal 1,572,893 1,992,961 2,266,183 2,097,683 2,531,971 110-13001 City Attorney 586,782 608,338 600,000 600,000 600,000 110-13002 Litigation Contingency 2,695 14,771 59,205 59,205 59,205 13-City Attorney Subtotal 589,477 623,108 659,205 659,205 659,205 110-14001 City Clerk 699,823 240,825 572,690 383,636 628,923 14-City Clerk Subtotal 699,823 240,825 572,690 383,636 628,923 110-15001 Finance Administration 552,286 699,190 652,425 305,894 309,562 110-15011 Accounting 1,443,351 1,673,978 1,576,713 2,033,700 2,038,021 110-15012 Central Services (34,012) 68,513 48,530 48,800 48,800 110-15013 Revenue Collection 729,684 863,048 790,330 1,023,713 1,035,558 110-15030 FIN-Risk Management 1,550,000 2,821,000 1,900,000 - - 15-Finance Subtotal 4,241,309 6,125,728 4,967,998 3,412,107 3,431,941 110-16001 Human Resources 1,061,205 1,062,851 1,114,990 1,195,202 1,231,050 16-Human Resources Subtotal 1,061,205 1,062,851 1,114,990 1,195,202 1,231,050 110-17001 Information Technology 3,332,007 4,479,845 4,749,705 5,341,485 5,453,306 17-Information Technology Subtotal 3,332,007 4,479,845 4,749,705 5,341,485 5,453,306 110-21001 Police Administration 3,332,486 3,695,943 3,791,841 3,575,456 3,707,889 110-21002 Police Training 945,991 964,294 1,058,391 1,222,763 1,247,397 110-21003 Police Investigation 4,870,003 5,048,364 5,317,663 6,497,445 6,796,302 110-21004 Police Patrol 18,094,695 17,215,494 17,388,511 20,828,639 21,788,207 110-21005 Police Records 672,054 753,783 756,104 992,156 1,019,639 110-21006 Police Traffic 1,248,041 1,252,385 1,237,688 836,978 804,122 110-21007 Police Juvenile 52,039 55,855 60,400 60,400 60,400 110-21008 Police-COPPS 179,654 361,909 563,316 1,221,257 1,273,127 110-21009 Police Gang Task Force 10,925 - - - -
110-21010 Police Swat Team 97,043 117,408 145,000 179,315 179,315 110-21011 Records/Comms/Property 1,708,164 1,523,957 1,990,084 2,061,035 2,075,109 110-21012 Police Information Technology 169,087 22,820 57,773 59,113 59,113 110-21103 PD Volunteer Services 4,000 1,602 3,950 9,600 9,600 110-21118 OTS Selective Traffic Enforce 5,180 - - - -
110-21140 2017 JAG Byrne Grant - (1,200) - 17,000 17,000 110-21143 2019 Byrne JAG Grant 16,323 - - - -
110-21144 2020 Byrne JAG Grant 16,613 - - - -
110-21196 K-9 Police Dogs of Union City 14,606 - - - -
110-21197 Police Explorers 7,246 4,894 13,780 20,330 20,330 21-Police Subtotal 31,444,150 31,017,509 32,384,502 37,581,486 39,057,550 Table 5 – General Fund Expenditures by Department and Program (continued) Draft Projected Draft Proposed Draft Proposed
Org Code Program Title FY23 Actual FY24 Year End FY25 Year End FY26 Budget FY27 Budget 110-22001 Fire Operations 11,754,973 13,183,717 13,881,678 14,705,167 15,168,707 22-Fire Subtotal 11,754,973 13,183,717 13,881,678 14,705,167 15,168,707 110-31001 Parking Enf Svcs (PES) 1,265 - - - -
110-33001 PW Administration 208,937 158,175 136,395 285,962 289,976 110-33002 Engineer Administration 42,877 52,564 50,640 2,400 2,400 110-33003 Engineer-Design/Projt Mgmt 359,272 420,193 511,980 512,174 830,762 110-33004 Engineer-Eng Inspection 258,072 262,686 323,660 335,768 338,334 110-33005 Engineer-Traffic Engnr - 17,546 - - -
110-33011 Streets Administration 209,197 77,184 106,320 126,657 127,091 110-33013 Streets Street Cleaning 57,499 190,201 - - -
110-33021 Bldg/Grnd Admin 37,904 63,046 69,580 94,716 95,862 110-33023 Bldg/Grnd Bldg Maint 1,846,297 2,014,489 2,067,890 2,184,358 2,231,337 110-33024 Bldg/Grnd Park Maint 1,564,557 1,603,750 1,604,510 1,931,839 2,099,904 30-Public Works Subtotal 4,585,877 4,859,834 4,870,975 5,473,873 6,015,665 110-41001 ECD Administration 732,595 733,407 695,170 872,645 883,406 110-41002 Building and Safety 1,188,308 1,376,306 1,312,928 2,009,860 2,045,627 110-41003 Neighborhood Preservation 11,531 11,744 169,086 246,773 213,674 110-41004 Current Planning 578,426 686,958 690,110 757,616 759,887 110-41005 Advance Planning 8,812 46,350 150,804 93,780 96,280 110-41007 ECD-PS-ECHO 256,042 205,303 5,647 5,897 5,897 110-41008 ECD-Fire Permits 63,178 101,736 93,260 101,697 103,059 110-41009 ECD Environmental Progams 274,864 514,389 472,720 641,022 773,852 110-41012 ECD-PS-CRIL - 10,000 3,770 - -
110-41013 ECD-PS-Immigration Institute - 5,000 5,000 5,000 5,000 110-41015 ECD-PS-Legal Asst for Seniors - 10,000 5,470 - - 110-41016 ECD-PS-SAVE - - 7,120 - -
110-41017 ECD-PS-Spectrum Fall Prev - 10,000 5,000 - -
110-41018 ECD-PS-Tiburcio Vasquez - - 9,920 - -
110-41019 ECD-PS-Centro Resource Center - - 111,550 - - 110-41022 Economic Development 364,793 357,968 554,920 591,219 593,903 110-41301 ECD-CRIL - - 10,000 10,000 10,000
110-41303 ECD-Immigration Institute - - 10,000 10,000 10,000 110-41304 ECD-Legal Assistance Seniors - - 10,000 10,000 10,000 110-41305 ECD-LIFE Elder Care - - 15,000 15,000 15,000
110-41307 ECD-Spectrum CS-Fall Prevent - - 10,000 10,000 10,000 110-41309 ECD-Tiburcio Vasquez - - 20,000 20,000 20,000 110-41311 ECD-ECHO Housing - - 20,000 20,000 20,000
110-41312 ECD-Centro De Servicios - - 145,000 145,000 145,000 110-41316 ECD-SAVE - - 5,000 5,000 5,000
110-41317 ECD-Spectrum Senior Meals - - 3,000 3,000 3,000 110-41318 ECD-Union City Family Center - - 3,000 3,000 3,000 40-Economic & Comm Dev Subtotal 3,478,549 4,069,160 4,543,475 5,576,510 5,731,587 110-51001 Leisure Administration 674,521 811,090 921,310 1,038,103 1,046,886 110-51002 Kennedy Youth Center 439,312 517,079 516,520 609,352 613,030 110-51003 Holly Center 325,838 397,989 363,575 493,394 496,959 110-51004 Senior Center 399,962 450,847 471,655 611,798 616,039 110-51005 UC Sports Center 990,479 1,084,453 1,133,650 1,232,102 1,243,066 110-51007 Youth Special Interest 3,945 7,654 9,180 14,855 14,867 110-51008 Youth Programs (pre-split) 144,988 185,980 69,620 132,972 133,205 110-51009 Youth/Family Services 949,618 967,222 909,390 1,276,058 1,287,549 110-51012 DPN-LSCP - (137) - - -
110-51020 First 5 Grant 5,392 - - - -
110-51027 Natl Parkinsons Comm Gnt-Ex Cl 8,913 125 5,000 5,000 5,000 Table 5 – General Fund Expenditures by Department and Program (continued) Draft Projected Draft Proposed Draft Proposed
Org Code Program Title FY23 Actual FY24 Year End FY25 Year End FY26 Budget FY27 Budget 110-51030 CRS-CAREavan 186,602 139,713 189,488 151,260 151,789 110-51035 CAREavan-Cannabis Com Benefits 3,340 - - - -
110-51041 Homeless Hsng Asst Prev (HHAP) 556 2,945 - - - 110-52016 Therapeutic Rec 23,788 15,983 17,440 27,100 27,296 110-52036 LRF-Boxing 23,997 26,471 37,100 42,956 43,036 110-52037 LRF-Teen Fee - 230 3,390 - -
50-Community & Rec Svcs Subtotal 4,181,251 4,607,644 4,647,318 5,634,953 5,678,723 110-61012 P O B Debt Service - 2,180,043 3,190,070 1,979,834 2,061,916 60-Debt Svcs Progams Subtotal - 2,180,043 3,190,070 1,979,834 2,061,916 110-71101 RDA Economic Development 93 - - - -
70-RDA/SA Projects Subtotal 93 - - - -
110-80106 Misc Dep-Station East Develop - 1,253 2,620 - - 110-81009 Network Infrastructure Rplcmnt 218,467 (447,160) 160,560 160,560 160,560 110-81010 Comp Replacement 511,078 - - - -
110-81011 PW Public Request & Ticketing System - - - - 200,000 110-81200 COVID-19 Virus 7,893 13,732 33,180 - -
110-81210 R Valle Celebration of Life 10,384 - - - -
110-81500 Storms 2023-DR4683 35,598 583 250 - -
110-81501 Storms 2023-DR4699 - 515 150 - -
110-82014 Sergeant's Office Remodel - 23,054 - - -
110-82015 ARC & Sub Station Re-Model - - - - 36,900
110-83004 Fire Truck - - - - 200,000
110-83012 PNC Eqpt Finance-Fire Truck 168,601 168,601 168,601 168,601 168,601 110-84022 Integral Communities Station 5,113 844 1,990 - - 110-84029 Florence St-CEQA - - 2,330 - -
110-84098 Nuvera Homes-Turk Island - - 2,020 - -
110-84119 Louie Ranch-Time & Materials 3,668 4,290 1,450 - - 110-84131 USA Properties-Time & Mats 2,559 - - - -
110-84133 33663 Mission Blvd-Time & Mats - 261 - - -
110-84135 H & S Energy-Time & Materials 3,344 969 8,450 - - 110-84136 Windflower Blk 2-Dev Agrmnt 126 - - - -
110-84141 Dec Rd/7th St Areas 9/10 T&M 6,635 - - - -
110-84143 Decoto Rd/7th St Area 1-T&M 3,256 135 - - -
110-84144 Decoto Rd/7th St Area 2-T&M 3,396 1,226 - - - 110-84145 Decoto Rd/7th St Area 4-T&M 9,612 - - - -
110-84147 Louie Ranch/Appian Way-T&M 2,563 11,142 3,520 - - 110-84150 33454-33462 3rd St Time & Mats 561 - - - -
110-84153 31011 Union City Bl-Time &Mats - 190 2,230 - - 110-84156 Misc Dep-2625 Decoto Rd - 2,567 690 - -
80-Citywide Programs (Non-PW) Subtotal 992,853 (217,799) 388,041 329,161 766,061 110-90924 Energy Conservation 226,942 231,829 236,759 236,759 236,759 110-91706 Energy Efficiency Project 192,857 192,825 192,746 192,746 192,746 110-92119 City Hall Space Planning Proj 9,789 - - - -
110-92123 Union Landing Monument SignImp 29,062 - - - - 110-92213 PD Facility Assessmnt Plan 6,210 - - - -
110-92221 Library Roof & Interior Repair 125,257 - - - - 110-92228 Historical Museum Repairs 66,449 104,410 45,153 - - 110-92229 CH EmergGentr/TSwitch Retrofit 16,131 111,408 113,806 - - 110-92230 Atrium/Garden Repairs 11,809 117,949 186,379 - - 110-92231 CH Workstan Modernization-Ph 1 35,351 - - - - 110-92235 Centro de Servicios Fence Encl 4,591 - - - -
110-92312 FS 31 & 32 Apparatus Bay Exhst - 165,861 745 - - 110-92316 CH Server Room 2nd Battery BUp - 395 102,605 - - Table 5 – General Fund Expenditures by Department and Program (continued) Looking at Table 6 – General Fund Revenues and Expenditures below, it appears that revenues closely match expenditures through the years, except for FY21 to FY23 where federal stimulus funds offset police and fire services costs, the City had numerous vacancies, recreation programming was ceased, and many professional services contracts were put on hold, all of which caused revenues to exceed expenditures significantly in those years. Based on the revenue discussions in the beginning of this report, staff believe \that Union City’s greatest challenge is increasing revenues. The expenditure and service levels are appropriate for a Union City’s size.
Table 6 – General Fund Revenues and Expenditures
Table 7 on the following page lists permanent, benefited positions within the City. Overall, staff proposes adding two full-time equivalent in FY27, while the detailed changes are listed further in this report. We are also listing two authorized, but unfunded, Police Officers within the Police Department. At one point in time, the City had five frozen Police Officer positions, and now we are down to two.
Draft Projected Draft Proposed Draft Proposed
Org Code Program Title FY23 Actual FY24 Year End FY25 Year End FY26 Budget FY27 Budget 110-92323 PD Men's Shower Stall Repairs 23,332 - - - -
110-92336 FS 31 Kitchen Countertop Replc 7,378 - - - -
110-92340 CH Wstation ModernizatonPhase2 - 2,210 87,790 - - 110-92411 Dry Creek Bridge Repair - 20,820 13,360 - -
110-92414 FS 31 Fence - 33,591 19,584 - -
110-92432 City Hall Carpet Replacement - - 200,000 - -
90-Capital Projects (PW) Subtotal 755,159 981,297 1,198,927 429,505 429,505 110-GENERAL FUND TOTAL 70,532,128 78,640,542 80,938,788 85,069,191 88,941,468 $-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
$100,000,000
FY19
Actual
FY20
Actual
FY21
Actual
FY22
Actual
FY23
Actual
FY24 Draft FY25
Projected
FY26
Proposed
FY27
Proposed
Revenues Expenditures
Table 7 – Union City Position List (Benefited Positions Only)
The proposed changes to staffing include:
• Convert to Business License Coordinator – From Finance Specialists III • Add a Junior Accountant – Offset by reduced overtime and temporary staffing expenses
• Convert to HR Analyst II – From HR Analyst I (starting in FY27) • Convert to two Community Services Aides – Offset by grant funds and reduced Police Cadet staffing
• Convert to Grounds Maintenance III – From Grounds Maintenance II • Add Grounds Maintenance I – Starting in FY27
• Add Principal Civil Engineer – Starting in FY27
• Convert to Transit Analyst I – From Assistant Transit Planner • Convert to Transit Analyst II – From Associate Transit Planner • Convert to Senior Environmental Inspector – From Environmental Program Inspector • Convert to Environmental Technician – From Environmental Program Inspector • Add Building Technician – Offset by reduced contracted labor Staff looked at the number of vacant positions (currently authorized, frozen, and proposed new), and Citywide, there are 38.5 FTE, making up $4.1 million in salary expenses and $5.7 million in total employee costs. For just the General Fund, there are 26.55 FTE, making up $3.1 million in salary expenses and $4.3 million in total employee costs.
FISCAL IMPACT
None.
RECOMMENDATION
Staff recommends that the City Council discuss the FY 2025-2026 & FY 2026-2027 General Fund revenues and expenditures trends and other financial information, and provide feedback to staff.
Prepared by
Jackie Acosta, Finance Director
Chu Thai, Accounting Manager
Submitted by
Jackie Acosta, Finance Director
Discussion of FY 2025-2026 & FY 2026-2027
General Fund Revenues and Expenditures,
Trends and Other Financial Information
April 29, 2025
2 Executive Summary
• Discussion of General Fund revenues,
expenditures, and financial trends
• Focus: Goal A - Financial Stability and Sustainability 3 • Capped property tax
rates at 1% of assessed
value
• Assessed values cannot be
increased more than 2% per
year
• It took California cities
20 years to recover from the
decreases in property tax
revenues
• Cities rely on other taxes
and sources of revenues
20 years to recover
Proposition 13 Changed Municipal Finance
4 Comparison of Per Capita Tax
• Union City has lowest Property Taxes Per Capita and 2nd Lowest Combined Taxes Per Capita
City Population
Property
Taxes
Property
Taxes In
Lieu of VLF
Sales &
Use Taxes TOT Franchises
Business
License
Taxes
Utility
Users’
Taxes
Combined
Taxes per
Capita
Alameda 78,280 $837 $128 $150 $33 $48 $28 $115 $502
Albany 20,271 $695 $111 $241 $3 $36 $39 $94 $524
Berkeley 124,321 $1,216 $121 $152 $56 $15 $217 $121 $682 Dublin 72,589 $661 $112 $360 $17 $82 $2 $- $574
Emeryville 12,905 $459 $83 $665 $349 $174 $747 $262 $2,279 Fremont 230,504 $420 $119 $388 $20 $50 $51 $- $628
Hayward 162,954 $417 $111 $390 $16 $68 $19 $106 $710
Livermore 87,955 $485 $111 $454 $37 $67 $88 $- $756
Newark 47,529 $434 $123 $331 $87 $101 $33 $79 $754
Oakland 440,646 $1,132 $132 $136 $48 $46 $230 $131 $723 Piedmont 11,270 $1,969 $131 $33 $- $51 $57 $108 $380
Pleasanton 79,871 $921 $97 $307 $46 $38 $66 $- $555
San Leandro 91,008 $366 $102 $443 $8 $65 $83 $128 $829
Union City 70,143 $232 $113 $171 $21 $54 $25 $66 $451
5 General Fund Revenues by Source
6 Property Tax Revenues
• Property taxes account for about 40% of all General Fund revenues • Property tax of 1% is imposed on the assessed value of real property • Estimating 4% annual increases
• Property Tax In Lieu of VLF started with the State Budget Act of 2004 7 If two property owners
in different cities each pay
$10,000 in property taxes:
• City of Berkeley
keeps $3,246
• City of Union City
keeps $1,600
• Fallout of Proposition 13,
system is not fair
City Population City Share
City Property
Tax Revenues
City Property
Taxes In Lieu of
VLF Revenues
Berkeley 124,321 32.46% $151,230,000 15,010,000
Piedmont 11,270 30.39% 22,200,000 1,480,000
Oakland 440,646 26.69% 499,030,000 58,290,000
Alameda 78,280 25.66% 65,500,000 10,050,000
Pleasanton 79,871 25.62% 73,570,000 7,750,000
Dublin 72,589 23.57% 47,950,000 8,150,000
Albany 20,271 19.43% 14,100,000 2,250,000
Livermore 87,955 18.00% 42,650,000 9,740,000
Emeryville 12,905 17.05% 5,920,000 1,080,000
Newark 47,529 16.77% 20,640,000 5,850,000
Hayward 162,954 16.19% 67,940,000 18,020,000
Union City 70,143 16.00% 16,270,000 7,890,000
Fremont 230,504 14.50% 96,850,000 27,340,000
San Leandro 91,008 11.79% 33,270,000 9,280,000
City Share of Total Property Tax Revenues
8 Sales Tax and Measure AA
• Bradley Burns: 1% per State Law
• Measure AA: additional 0.5% approved by Union City voters • Recent analysis projects increases for FY26 & FY27
• Sales Tax and Measure AA account for 20% of total general fund revenues 9 Business License Tax & Utility Users’ Tax
• $1.9 million has been the average revenue from Business License Tax • $2.4 million FY24 includes one-time enforcement
• Measure QQ: Project $3 Million in additional Business Tax 10 Utility Users' Tax
• 5% rate expires on
December 31, 2028
• 5.0% = $6.9 million
7.5% = $10.3 million potential?
• 7.5% is most common
in Alameda County: Cities of
Alameda, Berkeley,
Oakland & Piedmont
11 Charges for Services, Licenses & Permits
• Comprehensive User Fee in FY26 to improve cost recovery • Projecting greater fees and permits from anticipated development in FY27
12 Investments, Fines & Forfeitures
• Fines & Forfeitures: Parking citations, Neighborhood Preservation citations, Fireworks citations. Reduction in FY25 is due to the temporary cessation of parking enforcement in the Station District 13 Miscellaneous Revenues & Transfers In
• Miscellaneous Revenues: One-Time reconciliation of demolition deposits in FY26
• Transfers in: Eliminating unjustified $500,000 transfers in from Workers’ Compensation Fund
14 General Fund Revenue Summary
Revenue challenges:
• Volatility of sales taxes
• Development-dependent increases
Proposed strategy:
• Need to focus on other revenue sources
• Full implementation of Measure QQ
15 General Fund Expenditure Overview
• FY26 Proposed of $85.1 million and FY27 Proposed of $88.9 million Increase in MOU salaries and benefits
Budgeting of savings from vacant positions in FY26 & FY27 Increase in CalPERS UAL expenses
Increase in professional/consulting expenses
Increase in fire services contract
Decreasing workers’ compensation charges
Increase in general liability charges
Purchases of additional vehicles for ECD and Police
Better categorized operating expenses from one-time expenses Better categorized departmental expenses versus non-departmental expenses
16 General Fund Expenditures by Category
• Proposed FY26 Budget: Status Quo, still increasing expenses • Proposed FY27 Budget: Additional staffing for development • Services: Proposed FY26 & FY27 increasing due to increases in fire services contract, contractual services, professional services, and utilities
17 General Fund Expenditures by Category
• Salaries and Wages:
Includes MOU increases, budgeting for vacant positions, and proposed new positions
• Employee Benefits:
FY23 CalPERS expenses of $12.8 million decreased to $3.9 million in FY24 because the City began accounting separately for the CalPERS UAL in FY24 CalPERS UAL – General Fund share of UAL cost is increasing from $6.7 million in FY24, to $8.3 million in FY25, to $9.2 million in FY26, to $9.7M in FY27 (Citywide UAL cost increasing from $8.3 million in FY24, to $9.9 million in FY25, to $11.0 million in FY26, to $11.5 million in FY27)
Health Insurance – Increasing due to MOU. FY26 & FY27 is high because we budget for vacant positions
Workers’ Compensation – Reducing departmental charges to balance the FY26 & FY27 budget. Annual expenses are approximately $2 million per year 18 General Fund Expenditures by Category
• Supplies:
Reasonable expenses
• Services:
Alameda County Fire Department within Contractual Services:
$14.7 million in FY26 and $15.2 million in FY27
Contractual Services – Largest line item: $20 million per year including ACFD:
$2 million for ITS contracts, $1.8 million dispatching contract, $375,000 animal services and other PD contracts, $300,000 building maintenance Professional Consulting – Approximately $3 million per year. $610,000 building & safety contract, $150,000 for planning support, $280,000 accounting/revenue support, and $400,000 for Facilities Master Plan (FY27), Risk Management (ISF) – Charging departments for insurance costs to better capture full cost of program operations
19 General Fund Expenditures by Category
• Other Expenses:
Other Capital Equipment – ITS larger (capitalized) equipment Motor vehicles – Two Police motorcycle and Neighborhood Preservation Specialist vehicles in FY26 and $200,000 set-aside for fire apparatus in FY27 Capital Lease – Approximately $760,000 per year for network infrastructure, a fire truck and energy conservation/efficiency projects. Transfers Out – $2 million for Pension Obligation Debt Service, $875,000 per Retiree Medical Expense agreements, $750,000 LLAD fund support and $70,000 for PBID fund support
20 General Fund Expenditures by Department
Draft Projected Draft Proposed Draft Proposed
Expenditures By Department FY23 Actual FY24 Year End FY25 Year End FY26 Budget FY27 Budget 00-Non-Departmental 1,480,900 2,779,753 969,491 (605,000) (605,000) 11-City Council 361,611 654,065 533,540 874,384 700,357 12-City Manager's Office 1,572,893 1,992,961 2,266,183 2,097,683 2,531,971 13-City Attorney 589,477 623,108 659,205 659,205 659,205 14-City Clerk 699,823 240,825 572,690 383,636 628,923
15-Finance 4,241,309 6,125,728 4,967,998 3,412,107 3,431,941 16-Human Resources 1,061,205 1,062,851 1,114,990 1,195,202 1,231,050 17-Information Technology 3,332,007 4,479,845 4,749,705 5,341,485 5,453,306 21-Police 31,444,150 31,017,509 32,384,502 37,581,486 39,057,550 22-Fire 11,754,973 13,183,717 13,881,678 14,705,167 15,168,707 30-Public Works 4,585,877 4,859,834 4,870,975 5,473,873 6,015,665 40-Economic & Comm Dev 3,478,549 4,069,160 4,543,475 5,576,510 5,731,587 50-Community & Rec Svcs 4,181,251 4,607,644 4,647,318 5,634,953 5,678,723 60-Debt Svcs Progams - 2,180,043 3,190,070 1,979,834 2,061,916 70-RDA/SA Projects 93 - - - -
80-Citywide Programs (Non-PW) 992,853 (217,799) 388,041 329,161 766,061 90-Capital Projects (PW) 755,159 981,297 1,198,927 429,505 429,505 TOTAL EXPENDITURES 70,532,128 78,640,542 80,938,788 85,069,191 88,941,468 21 General Fund Expenditures by Department
• 00: Non-Department Expenses:
Transfers Out – $1,695,000 (plus $1,979,834 for POB in Department 60-Debt Service Program). Negative $2,300,000 for anticipated salary savings • 11: City Council:
$160,000 for City Council Retreat and Team Building, Strategic Plan and Townsend Public Relations Consulting
$71,000 for US Conference of Mayors, ABAG, Alameda County Mayors Conference, LCC, NLC, East Bay EDA, Cal Cities Caucus Memberships (NALO, APAMO, etc.), Sister Cities International
Community Relations – $160,000 for polling/survey and consulting Proposed Commission program budgets will move to respective departments 22 General Fund Expenditures by Department
• 12: City Manager’s Office:
Professional Consulting – $165,000 in FY26 for Baker Tilly, Financial Modeling, and Program Policy Consulting. Additional $400,000 in FY27 for Facilities Master Plan ($565,000 total for FY27)
• 13: City Attorney:
Approximately $659,000 per year
• 14: City Clerk:
Approximately $384,000 for FY26 and $629,000 in FY27 which includes election expenses ($250,000)
23 General Fund Expenditures by Department
• 15: Finance:
Risk Management Program – Converted $1.9 million transfers out to risk management expenses within various funds/programs
Increased contract services to implement and enforce new business tax rates of Measure QQ
Proposed new Junior Accountant offset by savings in overtime and temporary staffing.
Proposed converting to Business License Coordinator (from Finance Specialist III) to improve operational efficiency and service delivery of Revenue Program
• 16: Human Resources:
Propose converting to HR II from HR Analyst I (in FY27) 24 General Fund Expenditures by Department
• 17: Information Technology Services:
Propose no changes
• 21: Police:
Propose converting to two Community Services Aides, offset by grant funds and reduced Police Cadet staffing
Budget will memorialize frozen Police Officer positions • 25: Fire:
$11.7 million in FY23
$13.2 million in FY24
$13.9 million in FY25
$14.7 million in FY26
$15.2 million in FY27
25 General Fund Expenditures by Department
• 30: Public Works:
Propose converting to Maintenance Worker III for better service management Propose adding Maintenance Worker I in Ground Maintenance in FY27 Propose adding Principal Civil Engineer in FY27
• 40: Economic & Community Development:
Propose adding second Building Permit Technician, offset by reduced contract staffing
Possible loss of CDBG funds due to Federal policies will affect the City’s General Fund
26 General Fund Expenditures by Department
• 50: Community & Recreation Services:
Proposes no significant changes. Federal policies may affect CRS programs and the General Fund
• 60: Debt Services:
$1,979,834 in FY26 and $2,061,916 in FY27 to pay for General Fund’s share of Pension Obligation Bond expenses
• 80: Citywide Program (Non-CIP):
FY26 - $329,000 for network and fire truck lease payments FY27 – Lease payments plus $200,000 Public Works ticketing system, $37,000 for ARC & Substation replacement furnishings and $200,000 for fire apparatus set aside
27 General Fund Expenditures by Department
• 90: Capital Improvement Program:
Approximately $430,000 per year for Debt Service expenses on Energy Conservation and Energy Efficiency projects
Ideally, General Fund should budget or transfer out
28 General Fund Revenues and Expenditures
• Surplus/Deficit margin of -2% to 2% each year (excluding FY21 to FY23)
29 Position List (Benefited Positions Only)
Union City Position List Fiscal Year
Home Dept FY25 FY26 FY27
11-City Council 5.00 5.00 5.00
12-City Manager's Office 8.00 8.00 8.00
14-City Clerk 1.00 1.00 1.00
15-Finance 13.00 14.00 14.00
16-Human Resources 4.50 4.50 4.50
17-Information Technology 9.50 9.50 9.50
21-Police 109.50 109.50 109.50
30-Public Works 57.00 57.00 59.00
40-Economic & Comm Dev 20.00 21.00 21.00
50-Community & Rec Svcs 38.25 38.25 38.25
Citywide Total 265.75 267.75 269.75
30 Proposed Staffing Changes
• Convert to Business License Coordinator – From Finance Specialists III
• Add a Junior Accountant – Offset by reduced overtime and temporary staffing expenses
• Convert to HR Analyst II – From HR Analyst I (starting in FY27) • Convert to two Community Services Aides – Offset by grant funds and reduced Police Cadet staffing
• Convert to Grounds Maintenance III – From Grounds
Maintenance I/II
• Add Grounds Maintenance I – Starting in FY27
• Add Principal Civil Engineer – Starting in FY27
31 Proposed Staffing Changes (continued)
• Convert to Transit Analyst I – From Assistant Transit Planner • Convert to Transit Analyst II – From Associate Transit Planner • Convert to Senior Environmental Inspector – From Environmental Program Inspector
• Convert to Environmental Technician – From Environmental Program Inspector
• Add Building Permit Technician – Offset by reduced contracted labor 32 Vacant Positions
• Currently authorized, frozen and proposed new positions • All Funds – 38.5 FTE, $4.1 million in salaries & $5.7 million in total employee expenses
• General Fund Only – 26.55 FTE, $3.1 million in salaries and $4.3 million in total employee expenses
• Assumed $2.3 million in anticipated salary savings for each fiscal year of proposed budget
33 Key Takeaway:
• Stable property tax growth ensures some financial
predictability, but not enough
• Need to focus on other revenue sources
• Projecting revenues to meet expenditure requirements
• Budget lacks capital maintenance and replacement
• Stagnant revenue growth is not enough to cover status quo expenditure budget
34 Questions, Discussion & Recommendation:
• Tuesday, May 13, 2025, presentation of other major funds operating budgets
• Tuesday, May 20, 2025, presentation of Capital Improvement Program
• Staff is available to answer questions from the City Council • Recommendation: Provide staff with feedback