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FY 2025-26 First Quarter Budget Update and Proposed Appropriation Adjustments
<br />December 2, 2025
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<br />A General Fund summary as of September 30 follows.
<br />The audit for FY2024-25 (FY24-25) is currently in progress, and the final carryover
<br />amounts based on remaining budget availability are still being finalized, which is why they
<br />are not reflected in the First Quarter analysis. Preliminary FY24-25 results indicate that
<br />the City met and exceeded revenue estimates and spent less than appropriations. Staff
<br />anticipates sharing the final figures with the City Council at the January 20, 2026 meeting.
<br />A summary of General Fund revenues through September 30 follows.
<br />As of September 30, the City generated $40.5 million, or 10%, of all General Fund
<br />revenue, consistent with prior fiscal years. This performance reflects typical first-quarter
<br />collection patterns, as the City’s most significant revenue sources are received later in
<br />the fiscal year. Sales tax receipts lag approximately two (2) months behind the
<br />FY2025-26 1st Quarter Budget Update
<br />FY2025-26 General Fund Summary
<br />FY25-26 Original
<br />Budget
<br />General Fund
<br />Adjustments
<br />Approved by City
<br />Council through
<br />09/30/2025
<br /> Updated Estimates
<br />Estimated Beginning Balance at July 1, 2025 87,381,099 - 87,381,099
<br />Revenue Estimate 413,790,950 - 413,790,950
<br />Appropriated Spending (424,230,150) - (424,230,150)
<br />FY25-26 Contribution to Pension Stabilization
<br />Trust (1,000,000) - (1,000,000)
<br />Estimated Ending Balance at June 30, 2026 75,941,899 - 75,941,899
<br /> Less: 18% Reserve¹74,482,371 - 74,482,371
<br />Estimated Spendable Balance 1,459,528 - 1,459,528
<br />¹The City's 18% reserve policy applies to annual recurring revenue.
<br />Revenue Source
<br />FY25-26 Original
<br />Budget
<br />Received as of
<br />09/30/2025 % Received
<br />Property Tax/ Property Tax In-Lieu of VLF 95,877,210 844,038 0.9%
<br />Sales Tax (Measure X) 83,953,880 6,849,697 8.2%
<br />Sales Tax (Bradley Burns) 59,908,190 4,704,533 7.9%
<br />Other General Fund Revenue 49,431,060 8,876,078 18.0%
<br />Charges for Service 31,265,650 8,065,787 25.8%
<br />Utility Users Tax 29,250,000 5,370,042 18.4%
<br />Business License 17,500,000 1,200,399 6.9%
<br />Franchise Fees 13,600,000 947,981 7.0%
<br />Cannabis Revenue 12,651,460 1,485,309 11.7%
<br />Jail Revenue 10,853,500 209,785 1.9%
<br />Hotel Visitor's Tax 9,500,000 1,968,835 20.7%
<br />Total General Fund Revenue 413,790,950 40,522,484 9.8%
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