Item 09 - Fiscal Year 2024-25 General Fund Results

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Fiscal Year 2024-25 General Fund Results January 20, 2026 Page 2 Expenditure savings totaled $8 million, resulting in a $10.3 million increase in the Spendable General Fund Balance. These favorable variances resulted in an estimated spendable General Fund balance of $11.7 million at June 30, 2026, in excess of the General Fund Reserve requirement of $74.5 million (18% of annual recurring revenue). While revenues performed above conservative estimates and departments realized expenditure savings, the following items represent the most significant contributors to the $10.3 million increase in the spendable balance. RPvani iPc • Cannabis tax revenues exceeded revised estimates by $2.0 million, primarily due to one-time collections from structured repayment plans for unpaid taxes. These revenues are one-time in nature and should not be considered indicative of future growth. • Revenues from charges for service exceeded revised estimates by $1.2 million primarily driven by Paramedic Service Charge revenue, which continued to benefit from increased reimbursements for Medicare and Medi-Cal transports. • Utility Users Tax revenues exceeded revised estimates by $0.5 million, primarily due to higher utility rates throughout the year and improved collections on delinquent water accounts. • Sales tax (Measure X) revenue totaled $82.6 million, which was $0.2 million below the revised budget estimate. During the year, the Measure X budget estimate was adjusted downward by $2.8 million, resulting in a revised budget of $82.8 million. • Sales tax (Bradley -Burns) revenue totaled $58.5 million, which was $0.5 million below the revised budget estimate. During the year, the Bradley -Burns budget estimate was adjusted downward by $2.6 million, resulting in a revised budget of $59.0 million. • Business tax revenue totaled $17.7 million, which was $0.3 million below the revised budget estimate. While the business tax revenue estimate was increased by $1.8 million during the year, year-end collections fell modestly short of the revised projection. • Other General Fund revenues were $0.4 million below budget, primarily due to the recent transition of the Engineering Services Fund to the General Fund, as revenue estimates for charges for these services were lower than anticipated. Overall, General Fund Revenue increased by 0.04% in comparison to FY23-24. Current estimates suggest an expected 0.76% increase for FY25-26. Expenditures • General Fund expenditure savings totaled $8.0 million and contributed to the increase in the City's Spendable Fund Balance. The savings was largely due to position vacancies. The Police Department and Public Works Agency accounted for $4.7 million in savings, while the remaining $3.3 million was distributed across other departments.