TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Libby Bretthauer, Finance Director
Emy-Rose Hanna, Financial Services Manager
Alexis Motonaga, Budget and Financial Analyst
SUBJECT:Title
Fiscal Year 2026 Mid-Year Budget Report Including Funding Appropriations; and Fiscal Year 2027 Budget Development Calendar and Proposed Staffing Change (Partially Budgeted) (Finance Director Bretthauer).
(Estimated Time: 30 Min.)
A) RECEIVE REPORT
B) APPROPRIATE FUNDS
C) APPROVE STAFFING ADJUSTMENT FOR FISCAL YEAR 2027
D) CONSIDER GENERAL FUND TRANSFER TO INSURANCE FUND IN FISCAL YEAR 2026
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RECOMMENDATION:
Staff recommends that the City Council: 1) receive the Mid-Year Budget Report for Fiscal Year (FY) 2026 and FY 2027 budget development calendar; 2) appropriate $11,139,619 along with an increased adjustment to revenues of $2,023,134 for the General Fund; 3) appropriate $1,211,165 in Other Funds along with a decreased adjustment to revenues of $37,350 for Other Funds as identified in Attachment #1; and 4) approve the proposed Police Department staffing adjustment for inclusion in the FY 2027 Proposed Budget.
FISCAL IMPLICATIONS:
Every January, City staff analyzes fiscal year-to-date activity and prepares mid-year projections for revenues and expenditures to evaluate potential budget variances and forecast year-end results. This report focuses on those mid-year projections and explains budget variances to provide a current representation of the City's fiscal position.
Current trends indicate that General Fund revenues, and Interfund Transfers From Other Funds, are estimated to come in over the adjusted budget by $2,023,134 (1.6%). General Fund expenditures are projected to be $11,139,619 (10.0%) over the adjusted budget, mainly due to the inclusion of Interfund Transfers To Other Funds. Based on these projections, the year-end surplus is estimated at approxima...
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