Item 25 - Public Hearing - Fiscal Year 2025-26 City Budget

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City Council appropriations of resources are budgeted expenditures. Citywide appropriations across all funds for FY25-26 total $778.37 million (M), and the pie chart on the next page illustrates the different areas of expenditures. This does not include internal service funds, which account for costs charged between departments. Total appropriations this upcoming fiscal year increased by about 6% compared to FY24-25. Citywide expenditures are higher this fiscal year due to a range of new and expanded initiatives, including increased investment in critical City infrastructure and modern technology. These investments are essential to strengthening data security, modernizing City operations, improving traffic flow, enhancing pedestrian safety, and creating vibrant, accessible community spaces for all residents. An illustration of the citywide budget, by fund type, is shown on the next page. Examples of spending for each fund type follow. The unrestricted General Fund is the largest segment of the budget, with appropriations and transfers to other funds for debt service totaling $424.23M or 54.50% of the citywide total. The City uses its unrestricted revenues primarily for Public Safety (53%) and Public Works (14%). Enterprise Funds, funded by user fees, represent 16.83% and are the second largest budget segment of the citywide budget, totaling $131.03M. Programs funded from the Enterprise Funds include Water ($77.0M), Refuse ($23.14M), Sanitary Sewer ($9.84M), Sanitation ($9.04M), and Parking Operations ($5.08M). Special Revenue Funds, including Grant Funds from other government agencies, represent a combined 14.81% of the citywide budget, totaling $115.27M. Programs funded by grants include Housing Authority ($70.79M), Community Development Block Grant ($5.37M), and the Workforce Investment Act ($2.34M). Other programs funded by Special Revenue Funds include the Gas Tax ($20.37M) and Rent Stabilization ($2.29M). Capital Project Funds and self-restricted General Fund money represent a combined 6.84% of the citywide budget, totaling $53.25M. Major programs funded by Capital Funds include Select Street Construction ($23.50M), Measure M Street Construction ($16.51M), and Street Safety Programs ($2.75M). Other Restricted Funds represent 4.93% of the citywide budget, totaling $38.39M. The largest programs funded by Other Restricted Funds include the Cannabis Public Benefit Fund ($8.21M) and Successor Agency Funds ($24.84M). Debt Service Funds of $16.20M represent 2.08% of the citywide budget, which are bond debt service payments funded by Governmental Funds. 76