City Council Staff Report Page 1 of 3 July 28, 2026
Staff Report
Agenda Item No. 6.4
DATE: July 28, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Receive and File Quarterly Financial Report and Adopt a Resolution to Amend the City’s Authorized Positions List for Fiscal Year 2026- 2027
EXECUTIVE SUMMARY
FY 2025-2026 and FY 2026-2027 reflect a period of selective growth necessary to cover rising costs for labor, contract services, and operational supplies. The General Fund is likely balanced (revenues exceed expenditures) for both years, but the FY 2026-2027 budget shows tightening margins due to rising personnel and service costs and modest revenue growth.
Staff is also seeking City Council approval of the attached resolution to update the authorized position. There is no removal or addition of City staff at this time.
Classification Action/Comments
Deputy Police Chief Add title in FY 2026/2027 for succession planning.
Intervention Counselor (PEG) Reassigned from Intervention Counselor (MEG) Maintenance I – Streets Reassigned from Special Project Coordinator
STRATEGIC PLAN ALIGNMENT
This supports Goal B: Governance and Organizational Effectiveness of the strategic plan by aligning critical City services with current staffing levels.
BACKGROUND
The Finance Department is making efforts to provide routine financial reports to the City Council and the general public. While our goal is to provide updates for all funds, this quarterly report focuses on the General Fund, examining the adopted budgets for Fiscal Years 2025-2026 and 2026-2027. The conversion of our enterprise resource planning (finance) software has made it challenging for Finance to complete the audit for FY 2024- 2025; hence, the limited focus on the current budget.
Agenda Item No. 6.4
City Council Staff Report Page 2 of 3 July 28, 2026
DISCUSSION
The Quarterly Financial Report – June 2026, attached to this staff report, provides details of General Fund revenues and expenditures. This report was based on actual data received by June 30, 2026, and numerous adjustments and accruals still need to be finalized.
FY 2025-2026 General Fund
For the General Fund, the budgeted FY 2025-2026 revenues were $85,290,814 and budgeted FY 2025-2026 expenditures were $85,993,757, presenting a balanced budget.
Staff now project FY 2025-2026 year-end revenues to be $87,464,626 and expenditures to be $87,487,948, still a balanced budget. Union City was fortunate that franchise fees and business license tax revenues were stronger than anticipated, which pushed revenues close to $2 million over budgeted revenues. For projected expenditures, the City can no longer rely on anticipated salary savings ($2,300,000 for this year) to balance the budget as most positions are now filled.
FY 2026-2027 General Fund
Based on prior year revenues, staff is revising some revenue account projections for FY 2026-2027. Staff believes that franchise fees and business license tax revenues will be very similar to last year's high.
For the General Fund, staff now project FY 2026-2027 revenues to be $90,353,750 and expenditures to be $90,222,970. However, this does not include unanticipated increases in the City’s dispatch agreement with Fremont, insurance costs, and other unbudgeted/unplanned expenditures.
Fiscal Year 2026-2027 also relies on $5,075,800 from development permits and fees. If these development projects are delayed, General Fund expenses may exceed revenues for this year. Staff is diligently working with the developers and monitoring their project timelines, and at the same time, Finance is advising staff to be fiscally prudent throughout the year.
Authorized Positions List Changes
Deputy Police Chief: This position is recommended to be added to implement succession planning activities for the department, in response to anticipated department retirements and staffing needs. Staff will reduce the Police Officer position by one to maintain the same number of sworn officers in the Police Department.
Intervention Counselor (PEG): Staff eliminated the one Intervention Counselor from the Management Employee Group (MEG) line and hired a second Intervention Counselor from the Professional Employee Group (PEG) line. This is an administrative cleanup to reflect the current staffing in the YFS division of the Community and Recreation Services Department.
Maintenance I – Streets: There is a Special Projects Coordinator position primarily focused on graffiti abatement activities. City operations no longer require this dedicated position, which has historically been completed within the Maintenance I level Agenda Item No. 6.4
City Council Staff Report Page 3 of 3 July 28, 2026
classifications.
FISCAL IMPACT
There is no fiscal impact with the presentation of this report.
RECOMMENDATION
Staff recommends that City Council receive and file the Quarterly Financial Report and adopt a resolution to amend the City’s Authorized Positions List for Fiscal Year 2026- 2027.
Prepared by: Chu Thai, Finance Director
Submitted by: Chu Thai, Finance Director
Attachments
1. Quarterly Financial Report – July 2026
2. Draft Resolution
3. Exhibit A - Authorized Position List FY 2026-2027