TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Trang Nguyen, Finance Director
1. SUBJECT
title
Mid-Year Status Update of the Fiscal Year 2025-2026 Budget
body
2. SUMMARY
This report provides a mid-year budget update and year-end estimates for Fiscal Year 2025-2026 and includes recommended budget adjustments across several non-General Fund accounts. The report also reflects that the FY26 budget was developed using a zero-based budgeting approach.
3. RECOMMENDED ACTION
recommendation
1. Receive and file the report.
2. Authorize the appropriation of $1,804,700 to the following accounts:
210-6001-55105- Subscription Services $5,000
210-6001-80201- Software Capitalization $40,000
210-6001-55999- Other Prof/Technical Svcs $50,000
210-6102-55999- Other Prof/Technical Svcs $417,000
310-6411-59999- Other/Misc Services $58,694
317-6431-87102-266028-20- CHDO $117,943
317-6431-87102-266002-20- HOME Developer $803,243
317-6431-87102- Capital Improvements - TRBA $312,820
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4. FISCAL IMPACT
Sufficient funds are available in the available fund balances of the respective non-General Fund accounts to support the requested appropriations. These adjustments do not increase the FY26 General Fund deficit.
5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability
6. DISCUSSION AND BACKGROUND
General Fund Revenues???
Through the second quarter (Q2) of Fiscal Year 2026 (FY26), the City recorded total General Fund revenues of $70.2 million, or 45% of budgeted revenues through mid-year, including transfers. Based on current trends and analysis, total General Fund revenues for FY26 are estimated at approximately $158.3 million, or $4.5 million above the revised budget. ?
Overall, the improved revenue outlook is being driven primarily by stronger-than-budgeted fees for services, interest earnings, and fines and forfeitures, while core revenues such as property ta...
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