CC - Item 6E - FY 2025-26 Budget Presentation1
Overview
•FY 2025-26 Proposed Budget
•General Fund Overview
•Expenditure and Revenue Assumptions
•Budget Highlights
•Staffing Changes for Various Vacant Positions
•New Capital Improvement Projects
•Housing Development Corporation Budget
•Recommended Actions
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General Fund FY 2024-25 FY 2025-26 $ Change % Change
Revenues $31,603,514 $32,188,700 $585,186 2%
Recurring Expenses $30,996,850 $31,073,280 $76,430 0%
Surplus/(Deficit)$606,664 $1,115,420 $508,756
One-Time Expenses $596,850 $1,050,000 $453,150 76%
CIP Projects $0 $60,000 $60,000
Surplus/(Deficit)$9,814 $5,420 ($4,394)
}Property Tax –– 3.5% increase based on estimates
}Sales tax – reduction based on HdL (3rd party consultant)
estimates.
}Transient Occupancy Tax – flat based on current trend.
}Development permits – flat based on current trend.
}Recreation related revenues continuing to rebound as more
classes are being offered to the community
}Interest earnings increased based on historical and current
trend.
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}Salaries are adjusted for current step plus any merit increases.
}PERS Unfunded Accrued Liability is increasing from $837,870 to
$982,465.
}4% or $435,700 increase to Sheriff contract
}Increased cost for water
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◦$350,000 to update the City’s General Plan to ensure
consistency with current State legislation and statutory
changes over the coming years. This update is necessary to
maintain legal compliance.
◦$30,000 for a drone show at the popular Fall Fiesta event,
offering a unique and memorable experience for attendees.
◦$100,000 is proposed for a new holiday tree and updated
decorations to create a more vibrant and welcoming
atmosphere during the winter season.
◦$100,000 is needed to refurbish and repaint the aquatics
center slide, ensuring it remains safe, attractive, and enjoyable
for residents and visitors alike.
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Proposed Position Deletions to Vacant Building Positions
Adopted Adopted Proposed
Department 2023-24 2024-25 2025-26
Administration 9 9 9
City Clerk 3 3 3
Finance 6 5 5
Public Safety 8 9 9
Public Works 25 25 25
Parks & Recreation 8 8 8
Community Development 14 14 8
Total Full-Time Positions 73 73 67
No New Positions Added
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FY 21-22 FY 22-23 FY 23-24 FY 24-25 P FY 25-26 B
Total General Reserves 28,556,266$ 32,430,433$ 34,465,908$ 35,823,726$ 35,829,146$
Reserves % of Next Yr Expense 102%104%106%110%110%
Balance at 40% Reserve Level 14,020,258 12,432,513 12,290,273 12,978,010 12,958,668
Reserve above 40% level 14,536,008 19,997,920 22,175,635 22,845,716 22,608,734
All Funds FY 2025-26
Revenues $48,829,480
Expenses $42,193,280
Surplus/(Deficit)$6,636,200
CIP Projects $7,153,200
Surplus/(Deficit)($517,000)
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Project Type #Amount
New Projects 1 $2,858,200
Additions to Current Projects 1 $150,000
Annual Projects 4 $4,145,000
Current Projects 31 $45,416,774
Total 37 $52,569,974
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PG
#Project FY 2024-25
Request
Funding Source Funding
Source
26 Citywide Traffic Signal
Improvements
$2,858,200 Grant (HSIP)
Measure R
$2,572,380
$285,820
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Significant Changes:
}New property management company
managing both Angelus and Garvey
Senior Housing properties as of last
fiscal year.
}Last fiscal year had a capital
improvement budget of $400,000
that was one-time in nature.
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Expenditure FY 2024
Actuals
FY 2025
Budget
FY 2026
Proposed $ Change % Change
Expenditure 1,044,112 1,339,520 1,042,300 (297,220)-22%
Revenues 500,603 498,400 503,200 4,800 1%
S/A Subsidy 550,267 502,342 553,000 50,658 10%
Surplus Deficit 6,758 (338,778) 13,900 352,678 -104%
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