Vice mayor Viveros-Walton, not president, councilmember Aguilar.
President.
Thank you.
We anticipate Vice Mayor Viveros-Walton to be here in a couple of minutes and we will
try to remember how the record was cut back after she writes.
Thank you.
Will you please make your announcement?
Yes.
After each agenda item is presented, the mayor will ask for committee member comments and
then take public comment.
You will have two minutes from your comment.
A countdown timer will appear for the convenience of the speaker and attendees.
At this point in time we will move to our discussion item 2A.
And you may hear financial report, and I would like you to have an instruction call in silence here to present.
Please proceed.
Great. Thank you. Good afternoon to the Mayor and Finance Committee.
We do have an item tonight or this afternoon to speak with you about.
It is our fiscal year 2026 mid-year financial review,
as well as proposed adjustments at mid-year
for the remainder of the current fiscal year.
So the first part of the presentation this afternoon
will focus on where we are at mid-cycle
through the current fiscal year.
So expenses and revenue through December 31st, 2025.
And so I wanted to provide an update
to be a little idea where we're at.
When we're looking at columns B through D
are where the city was at this time in fiscal year 24, 25.
So this was through 2024 December 31st.
Columns E through G is the review of where we are
this current fiscal year for the same period of time,
July 1st through December 31st, 2025.
As I'm really wanting to call attention to a couple areas,
one looking at line 20, which is our total revenue.
If we're looking at percent of budget,
so how much have we collected through December 31st, 2025,
compared to 24, you'll see it's 37% in both areas.
So we are trending in a way in which we would expect
some of our larger revenues that come in
in the first part of the fiscal year
is really related to property tax,
city receives two payments or remittance of its property tax, the largest typically occurring in
the first part of the fiscal year, so around December we receive that and so you'll see we're
about when you're looking at our property tax line on line three of this table, we're trending very
close 50 or excuse me 46 percent to date and so when you look at the the comparison of G and D
Which is the percent that we've collected year-to-date through the same period we are training very similar. So there are no areas of
Necessarily concerned we will talk a little bit about some areas like sales tax in the next portion of this presentation
We continue to see a decline in that area is consistent with what we're seeing regionally
And we do again meet with our sales tax
consultants on a regular basis that we're constantly
being as up to date and current with trends as possible.
So we'll talk a little bit about that
in the second part of the presentation.
So moving to expenditures, lines 22 through 38.
You'll see that on line 36, again,
comparing column D and G, we're spending our regular
operating expenses at the same rate or similar rate
to where we were last year.
So again, there's nothing that is sticking out
as an anomaly or something to be concerned
that we're overspending, we're spending too quickly.
And then when you look at the comparison
of our transfers and our expenditures,
so you're looking at line 38,
so all of our operating expenditures and our transfers,
we're trending a little higher,
but nothing of significant concern.
We are showing we're about 42% spent
through the fiscal year.
If you straight line it across, we should be around 50%.
we'll talk a little bit about some of those anomalies again and and really the
expenditures that we're looking at here are capturing actual expenditures that
we have made. This is not taken into consideration funds that we may have in
comfort and obligated to send to the end of fiscal year. So now that we've kind of
done a brief overview of where we're using within the last six months, we use
that data to help inform our decision as we move forward the second half of the
fiscal year. So do we need to make necessarily necessary adjustments to our revenue projections?
Are there emergency needs that came up that we're not accounting for as far as expenditures
are concerned? And we'll talk a little bit about that.
So jumping into our proposed changes as it reflects related to revenue, we really wanted
to kind of highlight the different areas where we're seeing different changes occurring since
the time of adoption in June.
So starting with sales tax on line three,
we are showing a reduction of about $2.8 million.
Again, we meet with our sales tax consultants
on a quarterly basis.
We are always tracking this particular revenue.
It is one of the city's largest revenue strings
in the city of San Diego.
And so it is also one that is very indicative
of what's happening in the economy.
So we talk to different stages throughout the process
about consumer behavior and how consumers are,
as their behaviors change
and how they prioritize their spending,
it is impacting how much they're spending on taxable goods.
So really prioritizing services or non-taxable goods,
such as prioritizing groceries or services
that help with their kind of graveyard on day to day.
So they're not purchasing cars at the same rate
that they may have at different times in the economy more stable.
We are seeing online support by the increase in utility, user tax, and franchise really
specifically related to electricity and electricity consumption, so combined about $300,000 increase
there.
Business license tax is trending a little higher for the first half of the year.
We do see an increase in business renewables as we work with our business license tax consultant
and business license tax administrator.
And so we are catching up on some discovery work
that has happened.
And so more people are becoming more correct
and compliant with their business license taxes.
And then also we have seen some increases
in some new businesses within the first part of the year.
So when you're looking at taxes,
it's kind of a net change of about 2.2 million.
Moving into some totals of other types of revenue
that the city receives that are not tax-related
when you're looking at lines 11 and 12.
So, 11 charges for service.
We're anticipating an increase of about 270,000.
A significant portion of that is related
to the increase in reparation programs.
We are seeing a significant increase in participation
in the number of programmatic,
recreational programs that we're offering.
And so, as we continue to right-size
Our program will offer the community,
but also rightsizing the revenue
as it relates to participation in those programs.
We are increasing our interest in property income.
That is related to the city's portfolio
and direct increases as it relates
to the returns of our CMS portfolio.
Line 14, which is an intergovernmental,
that's related to some reimbursements
and grants that we have received.
A significant portion of that,
almost 700,000 is related to a FEMA reimbursement
from past emergencies.
So there typically is a delay in when you actually spend
the money from when you submit your plane to FEMA
to when you actually get your money.
You don't typically receive your reimbursement
in the same year that you expend the dollars.
So this is a catch up from prior year expenditures.
And then a minimal change in other transfers.
It's really an other increase in projected revenue
as it relates to the cherry festival.
So increases in total for other non-tax revenues, 1.6.
So a total net decrease of about 600,000
to the overall total revenue.
So moving on to proposed general fund expenditure adjustments.
Again, wanting to highlight the two areas where
we're looking to make some adjustments.
You'll see on line 7, recreation of parks, about 230,000.
Again, those are directly related to,
as we continue to see increases in revenue,
we're continuing to offer more programs.
And so there are some expenses related
to offering additional programs,
which are then offset by the revenue
that we're receiving from those programs.
Public Works also has a request for about $300,000.
I'll talk a little bit more about these
on the next slide in more detail.
And then the last adjustment will be to transfer on line 15.
It's about $360,000 reduction in transfers.
And that's specifically related to no longer needing
a subsidy from the general fund to the parking fund.
So I will jump over to this slide here,
which provides a little bit more detail on what
makes up those different requests.
You'll see $144,000, if really, really did
some of the payments and supplies necessary
for the additional recreation programs which are offset by revenue, enhancements to the
Cherry Festival marketing for increased festival footprint again offset by some of those remedies
that we're going to see as we continue to build out the Cherry Festival, additional
Wi-Fi receivers to increase again the festival footprint as we continue to expand the areas
for our vendors that does require additional support
from Wi-Fi as they continue to take online payments,
recycling centers for community events,
additional picnic reservations, signage again offset by increases
in projected picnic reservations.
We do have an expense related to the Haus Bridge
for mitigation and restoration at 30,000
Citywide median landscaping, again offset by revenue,
some bank charges to reflect increase
in the deposit pickup so as it relates to recreation.
So total general fund operating is a total of 260,000.
And then you'll see online 10,
the elimination of the parking subsidy from the general fund.
So a net change to the general fund,
I'm about, oops, oh, two, sorry, 86, almost 87,000.
So wanting to just provide an overview of the proposed general fund impact, column B
will show what the adopted budget was, so back in June we'll be getting balance of
about $54.7 million.
We'll be taking into consideration the change or the use of fund balance of $6.1 million,
our projected ending balance of $58.6 million.
So I want to show and really emphasize column C before we move on.
The city reflects, you'll see that beginning balance is different, it's 69.5 and we'll
go into a little bit more detail when we look at the tenure forecast.
But the city ended its fiscal year, U.K. and fiscal year 2025 using less reserves than
it originally planned for and so that increased the city's beginning balance position in a
much positive way.
And so when we look at the amended budget and we look at the ending balance with that,
it's 54.1 projected ending balance.
When you're looking at column D,
that is kind of what we're looking at.
We're asking for today is the change
in reduced projected revenue,
a minimal increase in expenditures,
a reduction in transfers,
and so a reduced projected use of sub-balance
of about a half a million.
So when you are looking at column G, or excuse me,
we have that new beginning balance.
And when you add together columns C and D,
which is the amended budget plus recommended changes,
we have on column, or excuse me, row four, five, and six,
reflecting the changes that are being proposed today.
Also what is being shown and reflected here
is in column seven, which are carried forwards
and budget amendments that have been approved by council.
So those are prior expenditures
that were included in the 2025 adjusted budget
that were not completely spent in that current fiscal year,
but were all authorized expenses.
And so we're carried forward of expenditures
to be spent in fiscal year 2026.
So when you take into consideration
all of the requested budget amendments,
plus the prior year carryover,
we are looking at a change or a net change in fund balance
of about 16 million.
So taking that new beginning balance, the updated fund
balance, or use of fund balance, your projected ending
balance for fiscal year 2026, and column E would be 53.51.
So this is just the sheet before with much more
of a minimal or summarized version
of the general fund forecast.
This is the 10-year.
And do you want to call attention again if you look at columns C and D?
C represents the fiscal year 25 adopted budget or the adjusted budget,
and where we projected to end the fiscal year.
Column D is actual, actually where we ended the fiscal year.
So when you look at column E and F, the fund balances,
we're referencing where the projected ending and beginning balances
based on the adopted budget. When you move to columns G and H you're now
referring, and you can see on lines 12, that now you are referencing columns D
row 13, which is the actual funding balance. And why this is important and why
we want to call attention to this is, you know, at the time of adoption we met the
The city's council's policy was 20% expenditure for economic uncertainty for fiscal year 26-27 and we were slightly lower.
As a result of how we ended the fiscal year in 2025, the city's updated adjusted fiscal year 26 pending balance as a percent of expenditures for economic uncertainty is 25%.
So we are meeting the council's goal.
Excuse me, the Council's directed policy, reserve policy, and then column H you will
see has increased from 15.2 percent to 20.2 percent, so again meeting that Council reserve
policy of 20 percent.
And both columns, so column G does include both the changes in revenue projections as
as well as the proposed changes presented this afternoon,
as well as the carryovers from prior years, you can see here.
So moving to non-general fund proposed mid-year adjustments.
We spent a lot of time talking a lot about our general fund.
It is a very, it is our fund that supports
our core services that we provide to the community.
There are other funds in this organization,
such as special revenue, enterprise,
and internal service line.
So what is being presented this afternoon
is proposed on general signed expenditure adjustments.
We have a few for consideration.
The first is a little over about 17,580
is related to environmental services
for any filmmaker support for upgraded maintenance.
It is a solution that I thought
or that they use to track compliance data.
Rows five and six are facility maintenance requests,
totaling 67,000, related specifically
to maintenance costs for facility repair and maintenance,
as well as ground repair and maintenance.
Row nine is related to the city's stormwater fund.
It is actually a reduction or a deferral of about 300,000
for Prop 18 efforts works, which are being postponed to 2027.
So we will be recommending removing it for 2026,
but it will reappear in the 2027 budget.
And then line 12 is related to the city's capital project
funds.
There is a project that was slated
to occur in fiscal year 2027 due to some emergency means.
There is a request to reallocate those dollars
from fiscal year 2027 to 2026.
And that would increase the fund by 300,000 this fiscal year
and would reduce the budget by 300,000 for 2027.
With that, this afternoon, we are
seeking two actions from the committee.
The first being is to accept the 2026 mid-year financial report.
And then second is to review and recommend the proposed fiscal year
26 budget adjustments to the city council for consideration.
So at this point in time, we'll take public comment on this item.
If you have any public commenters, I receive no cards.
So we'll close for public comment on this item and then we'll move to can you remember questions.
First, please download the discussion.
Can you read questions on the presentation?
Beginning with my SMARO.
Thank you for the presentation.
I was looking at the sales tax, and I'm wondering how that data comes back to us.
Are we able to see which type of receipts are being involved in sales tax?
The reason I'm asking that is because I just came from a downtown shop and it was packed,
and I was just wondering if...
I know that the majority of it comes from big ticket sales, right, like, vehicles and that sort of stuff,
but I'm just wondering if the data that we get back,
if we're given a C, the type of receipts and sales tax,
and what kind of types of businesses.
Sure, we absolutely do see our top 25 or top 100,
there's different way that you can see it.
Sales tax information is confidential,
it's highly confidential, so it's not something
that can be made public.
We have been able to provide information
as it relates to the top 25, in no order of which
they are the actual top sales tax generators in the city.
So we do have some data that we can provide
to the committee council to show you kind of a level of that
but it is highly confidential information
that we do review quarterly with our sales tax providers.
And I didn't realize, confidential in what way?
As to the public or to you in terms of receiving the data?
It's highly confidential as a theme of public basing in it.
We have some level of detail that we receive as clients of our sales tax consultants.
But it is confidential as it cannot necessarily be provided to the public,
as well as people who are not part of the review committee of the sales tax.
So if we're thinking of some sort of strategy around retail,
how would that be informed?
I guess it's not still not clear to me.
Do you, do you finance or city staff
or is it part of that circle of trust?
You're able to see the types of businesses
and even the specific businesses
that are the highest computers in South Carolina.
Okay, and to clear from what I said,
a committee is not necessarily a committee,
And it is absolutely a group of city employees that are,
so it's not just finance.
It's finance as well as city leadership.
Our economic development staff all are part of it,
and we're all part of the team.
So when we're analyzing and trying to understand
what is happening to the city sales tax base,
we're all part of that conversation.
Thank you for that.
I'll ask a question regarding staffing.
Does the current budget, does it maintain the same level of, were there any staffing changes or was there a lot of open positions that resulted in savings this fiscal year or were we pretty much staffed up?
So our adopted budget does make some assumptions on vacancy rates based on historical trendings, what we see in the market,
working with departments on how and how quickly they think they can fill positions.
What I would say is as we do our mid-year review and we do meet with departments on a quarterly basis as well,
is to really look at staffing levels and so what I would say is right now the assumptions that we have made
as far as projected
savings are currently in line
and trending in a way that we would expect.
Thank you.
And I do, okay, I do see a lot of major requests
in terms of sharing festival type related.
What is the revenue coming in from the sharing festival?
Sure, I'm gonna invite Director Zuniga
to answer specific questions about the request
And then we're going through here as well.
Good afternoon.
Oh, thank you.
Good afternoon.
Just give me one moment.
Pull it up.
Pull it up.
I just also wanted to share, typically,
for the charity festival.
We are proposing a this year's revenue
specific to the Wi-Fi request.
Those are about time fees to install Wi-Fi receivers.
They spent a good moment to fund the coverage for Wi-Fi coverage
for vendors.
marketing basis also to increase visibility and traffic at those locations.
I also wanted to have the finance fee and the second I can come back up and provide those garnishes.
Yeah, that's fine.
And then, what is the parking, and that was my only question, so if you want to get a little bit, yeah.
What is the parking lot repair project that was supposed to be in 27, it's now in 26, is on page 11 of the presentation?
Thank you, I'm gonna invite up Sheila, our director of public works.
Good afternoon. Sheila, our public works director.
So the project we are requesting to move ahead of the schedule is for the parking lot at Fire Station 12.
It is in disrepair of the pavement and we have a project that is scheduled for this year
And we're hoping it's the advantage of the same bid package and the
larger scope of work that we can incorporate it.
And which one is Station 12?
It's on 143rd.
I know from here. I don't know the numbers but I already are.
Um, I have more questions but I'm sure my colleagues have to so I'll just set aside.
Thank you.
My question goes to page 9 of this.
I think it would be a slight 9.
So if you can take a look at the, I think our concern was thank you for staff for coming
back and adjusting and making some arrangements.
arrangements. I think, you know, we've seen a lot of impact on that, but it still looks like on
line item 3, after fiscal year 27, we're still facing an operating deficit. My concern is,
I'd like to see the total expenditures and transfers match the total revenues,
so that the net change in fund balance, I mean this, I've seen too much right here, is
I know it may be a huge task, but how can we change so that the net change in fund balance
this is not read. Thank you for that question and I want to clarify that this is where we are
at one time as you may recall the finance committee as well as our council supported
that directive and when we presented the budget in June of 2025 we did meet that goal or that
objective for 2026 but at that time really requested some grace and some time from the
council, so that the city could really spend time being
thoughtful and meaningful about the adjustments and reductions
being proposed for the council. And so some of those reductions
will start to come through for the mid cycle 2027 budget,
which will be coming to you in a month of March. And so a lot of
work has already been done by all of our staff, and try and
really thoroughly understand the proposed changes, not only how
they impact the organization, but how it impacts our
community and so wanting to be very thoughtful about proposals that will be put for you and
that will come to the council in March and we'll also come to this committee with a much
deeper dive into those proposals at the March committee. And so at that committee meeting
what we will bring forward to you will address that concern where you no longer see the reliance
on the city's reserve to balance its budget.
Okay, wonderful.
That's my question.
Thank you.
Okay, I will come back to the council member
at this whole time, and please proceed.
Last year's sitting here.
Just, that's low.
That's low.
That's low.
Okay, we'll go ahead and take a look.
There you go.
Thank you.
Last year's revenue was 93,000.
we're projecting 115,000 this upcoming fiscal year.
And again, what we're asking for
is the Wi-Fi to extend the footprint
to have additional vendors this fall too.
Those are one-time charges.
And that's net?
And that's net, or is that profit, or?
That's just revenue.
It expenses, it's roughly estimated,
it's about 180,000.
Right, so expenses are 180,000.
And we're about to use 115.
okay okay okay um let's chat a little bit about various things so we'll start on page nine where
we are right now comes over a lot was probing some of the numbers i'd like to dig into
column H. And this one's a little bit, it's confusing to me, because the line 3 is now
bigger than the adjusted proposed that can be adopted. So 156.1 versus 155.7.
So I see what happened here, so it looks like possibly, actually I'll have to dig into that.
I don't see why there would be an adjustment unless there was an adjustment
that was authorized by council previously, which is why it was adjusted and not, so
as a separate line item with council that came before, so we can take a look and
dig into that and provide a response to this committee on what the difference is
between the adoptive and the obsessive we absolutely do have.
Perfect. The transfers. How may I understand what this is? Because at the time that we had our
discussions last year, around this time of year, it was a million dollars for a
fire truck and some other things. But at the basic idea, I thought it was that we're going to see a reduction there.
And maybe we are seeing, I just kind of walked into that.
And I'm glad that you asked about the line three, and I can go back to that.
What is changed between the adopted and the adjusted is the account for the opening of the expansion of the Wolfram Library.
So at the time of adoption, it didn't include that,
which is about 460,470,000.
So that's what that adjustment is for.
And so to talk, just to answer your other question
about transfers, so we have regular type of transfers
that support capital infrastructure.
So we have support that goes for parks, maintenance,
major park maintenance, major building maintenance,
and then we have about 3.6 million
and that goes to support of roads and road rehab.
And so that is a significant portion of what we see,
you will see in both column E and G.
So the adjustment there is the reduction of the subsidy
to the parking fund.
It does include that $1.5 million
for a fire truck in this park, that's the lawyer.
And then you'll start to see there's
different changes in our transfer rates like you look at columns I is about 6.5
million. So that's 6.7 the following year. Both of those include the replacement of two
different fire trucks each fiscal year. So one fiscal year, one fire truck in 28 or 29. And then
we start to kind of return back to those normal levels of subsidies to capital infrastructure needs.
and then in 2030 you'll see a significant jump against that 8.3 again
that includes the cost of purchase of a different more expensive fire vehicle
and so wanting to build those in. I will say that over the last part of the
fiscal year, the beginning of the fiscal year, we've been really working to stabilize and
understand what our fleet funding needs are as an organization of the city and so
So we're working with the consultant to really build out a very complete fleet needs assessment.
So we are capturing the cost of our fleet and that replacement schedule.
Replacement schedules vary depending on the type of vehicle it is and so working directly
with that consultant to also implement updated policy to centralize a lot of our work to
be more efficient.
So there's a lot of work that's been happening as far as the fleet fund is concerned, but
do you want to capture some of those really large expenses such as fire vehicles?
I think I mentioned during the budget process that fire vehicles at the time of when you
purchase it, it takes anywhere from three to five years before you actually receive
it.
You are receiving a lot of expensive costs if you pay upfront, and so that is what's
built into these funds.
So that's all useful and I think, just, I'm glad that we're getting there because I don't think we heard that at last meeting.
So I think it's useful. But let's come to page five.
Line four. So part of what, there's just a mix of stuff happening there in this coming year.
I will focus on electric bills because they're what I know more about.
We're seeing downward pressure on pricing of electricity,
but the fixed cost for money is being introduced by PG&E.
So in that increase there, is that based on some analysis?
and so what is that we're finding?
Yeah again the city works with utility user tax experts
who provide services to cities like the city of San Diego
and they work directly with doing audits for us as well
to make sure that all applicable businesses
are participating and remaining
their utility user tax.
And what we are seeing is some trends in consumption uses.
So that's where as the increase in consumption increases,
so does the utility user tax as it relates to electricity.
That's about pricing and more about consumption.
Thank you.
When I look at sales tax, sales taxes aren't one source.
So obviously, any change there is concerning.
Are we forecasting a change in consumption patterns?
or change in pricing, change in tariffs,
but how do you understand?
That's a real number.
Yeah, it is, right?
And what I would say is we met with our sales tax consultant,
the city had seen significant growth
over the last several years
in this particular revenue stream.
And so, I think over the last several years,
each year that this was presented to the council,
it was a larger number, right?
And so, and it is indicative
of how well your business is doing in the city of Elia Grove
but how are your consumers behaving as well, right?
And so the impacts of the tariffs,
just kind of the uncertainty in the market
and what we're hearing from our sales tax consultant
is really impacting people's behavior
and how they spend their dollars.
And so, as uncertainty, for example,
they gave an example of, you go to the grocery store
buy a gallon of milk and it's $7.
And someone might say, well, I don't really
eat that gallon of milk today.
But as the price continues to stay,
people start to adjust and say, well,
I need that gallon of milk.
And so that behavior hasn't caught up.
People are very concerned still on holding your dollars.
And so they say, we're going to spend our money on what we need
and not necessarily what we want.
And oftentimes, what we want are the taxable goods.
And so as the economy continues to improve
and or stabilize, we'll start to see this area
of the city sales tax start to stabilize.
While it's important, and for the city of San Leandro,
and it's our tax, what I would say is,
it's very similar to what we're seeing across the region.
As I talk with other finance directors,
this area, and oftentimes sales tax,
is a large component of most organizations revenue makeup.
And so it is very concerning for a number of agencies,
specifically here in the area
that are seeing very similar trending.
Page seven.
This is just more like a freebie
because $20,000 for additional Wi-Fi receivers.
I know we had a second year where it wasn't,
one year it was one service provider
and this year it was a different service provider
but we had a menu with these shoes.
Will this enable us to have dedicated WiFi for the vendors so that everybody's Instagram
posts and TikTok posts and all that stuff doesn't eat up the bandwidth that inhibits
our crowds to them?
Yes, that's correct.
Last year we had dedicated WiFi, and so we expanded the movement last year, so we had
to add hot spots for a specific area of the festival to accommodate the additional vendors.
So this year we're going to add additional receivers and continue to have dedicated Wi-Fi
for that festival for her. On this one, page 7, line 906,
I think of the house bridge as being fully paid for, so I'm not quite sure why this is here.
Sure, thank you for clarifying or asking a quick clarifying question.
So the city did have budget appropriated in fiscal year 2025 due to an administrative oversight.
The unspecced budget was not appropriated into the upcoming fiscal year, so it wasn't carried forward.
And so those dollars went back to the fund balance.
And so what we're asking is to reauthorize those funds and bring it out of the fund balance to pay for these expenses.
So my question is, why are we paying for the expenses and it's not just from the grant,
from the donation?
So I'll have the Ask Director Marquisis on.
We have a label being this?
Sure.
That just looks like it's coming out of general fund, which is why I'm confused.
Thank you, Mayor.
So this particular work, the $29,000, was for some of the mitigation for the tree cleansing
So it's in between from the FEMA grant that actually funded removal of the bridge and
that work.
Now there is a permit that required us to print 15 additional trees to restore the embayment
and that was not covered by the FEMA grant and not funded by the donation which was focused
on rebuilding the bridge.
So it was in the gray zone.
Perfect.
Thank you.
So then I think the last question would just be that big picture question.
What's going on to you? I think it's that slide.
Maybe let's do it on page 8.
So just from a terminology perspective, the adoption was appointed the two-year adoption.
Can you remind me? Is that 25 fiscal year 25 and fiscal year 26?
or is it fiscal year 26 and fiscal year 27?
Thank you, so when we adopted the budget, it's fiscal years 26 and 27, so it spans calendar year 25 and 26.
And then fiscal year 27 would be calendar year 26 and ending year 27.
So when we're talking about fiscal year 26, we're talking July 1st 25 through June 30th.
So, in May-ish of 25, we got to column B, and then the amendment that we have here,
we amended in the fall of 25, and that was at the time where we said make the operating
balance, operating budget balance, was that from May?
May, I guess that was from May, so remind me we got to column C primarily because of what?
Primarily, well I'll say for example the rather than blind is slightly more than what was adopted that had to do with some grant coming out of the C, but council adopted.
And then when you look at line seven,
so what that adjustment really was,
was the authorization of caring
for prior authorized budgets by council.
So unspent budget from 2025 was carried forward
to continue the work that wasn't completed in 2025,
it was carried forward to 2026.
And so that was a real significant change
between column B and when you see column C.
It's interesting how you blend
so it's appropriated money that's authorized,
but there are other expenditures here that are budgeted,
that are authorized, but they're not appropriated.
So I think of our budget, right?
So it's kind of a mix of apples and oranges.
So we bring forward, at least carried forward,
and we do request that when we carry forward
that you are appropriating those funds
in the current fiscal year.
the plus budget amendments.
Those are typically one off or individual staff reports
that come to council for consideration and appropriation.
And so that's what that total is made up of
is that departments can bring individual requests
and actions to council for consideration and adoption.
And so, when I look at column D,
so in column C, we said in June of 26,
We think our ending fund balance is going to be about $54 million.
But now we have new information.
So now we think that it's going to end at $68 million.
So I would clarify and I see why this is confusing and probably should have left D for 11th blank.
Because what we're asking for today is in column D.
It doesn't take into consideration that 9.4 million that was already previously appropriated, right, and carried forward.
Which is what really what we're asking for is if UJ comes into consideration column C, which has already been approved by council,
Plus any new or recommended changes that may occur, you get a column T.
So it's a little—that probably should, from a presentation perspective, they love it so much.
So then what we're saying is essentially because we will have less revenue, so the column T is the real story.
We'll have a little less revenue, and we'll be spending a little bit more money.
We want to keep doing more of our savings.
at least as of right now.
Correct, and as a reminder, we did not,
we, I think it was about a little over 20 million
that was authorized in 25,
and we didn't spend that full amount of,
or I shouldn't say spent,
we didn't utilize that full amount in the fund balance.
We ended the year using about a little over five million.
And so that's why it looks as if we're studying more
because we didn't fully expend the total amount in 2025.
It was just carry four.
I don't really understand that so you can try that again.
Sure, can I shift to the next slide?
So, do I have a pointer?
Probably doesn't work out here.
Okay, so when you look at column C, row 10,
you'll see that at the time of adoption,
we thought we were going to need to use 20.7 in reserves to balance our budget.
When you would have called them D, row 10, we actually,
when you take into consideration that we brought in 147.7 million and
spent 153.5 million, we actually only utilized 5.4 million
in reserves to balance the budget that year.
However, when you look at column G-
So that's a negative answer of an A.
And then we deferred-
Correct.
Mathematically and extract expenditures.
To the curve vessel here.
That's 13.
Right, so nine is a four, plus nine is 13.
That is close.
And the balance, that was not carried forward,
and it went back to fund balance,
which is what caused the net position
for the city to improve.
because we didn't even carry forward and use combined
the total amount that the accounts are authorized
at the time of adoption.
The story's somehow readily in the document, I think.
Sure, we think.
I'm not quite sure how, so I'm not prescriptive right now,
but there's just the five names, please.
Just of the playing the English for that part,
is we spent less than we were authorized to spend overall.
That's, which is a good thing.
So for example, we had positions that we didn't fill.
That's not a carryover, if you did not spend the money that the council said you can't spend.
That's the big change.
That's 10 million dollars.
That's the carryover.
That's a huge difference. Thank you.
And then my last question helped with the enterprise funds, or internal funds, that are just trying to keep track of.
And I didn't do this, so this there, my apologies in advance, is the Facilities Maintenance Fund, is that tracked separately in our audited financials?
It is.
It is.
And when we think of that fund, do we do Facilities Maintenance, how do the general fund as well, or is it all captured in this?
So I will defer to Director Marchesis, as far as whether or not there are expenses coming up at the general fund for this building, and as a result I'll capture it here.
From my understanding, if we have it all captured in this fund, the fund's $6.87.
If I go to paying a building, money comes out of here, if I replace a roof, it comes out of here.
Um, replacements and enhancements are not part of the maintenance.
It's a remediating mold.
That is included, yes.
I don't know, but I do have a question about FileMaker, who that would be.
I'm going to turn it over to the deputy director of the closet.
Okay.
Is that FileMaker as in like FileMaker from the database?
That's correct.
You're the second person to ask that today. Yes, we are using it. It has been updated to a much higher water
And what I can say is that we are about to make a huge leap in versions
Up to the the current day's version and we're also paying to put it into the cloud. So I
Understand that it is a relatively old platform, but there has been some modern modernization to it
Okay, I think I can have all of my questions transverse.
Any other questions generated or discussion around recommendations?
Would you like to adopt staff recommendations or discussion about it before moving in that
direction?
Vice Mayor.
I just did want to point out, and this is where I'll comment on looking at slide seven,
That the fiscal impact of the additional recreation and programming, both payments and supplies,
that's something that is reflective of a council directive in terms of looking at recreation
services and all the programming that is offered.
So just out of this table, that's the largest amount, however, it is reflective of a council
kind of priority and investing in services particularly for families that depend on affordable
programming for their children so I just wanted to highlight that. The other issue is more on
the technical question, the additional WiFi receivers are they are they permanent in their
location or are they able to be moved? And the reason I'm asking is you make your way up.
You know, we have ongoing events in downtown where there's vendors that come.
I mean, it's not, they're not, it's not programming down by the city, but so my
question is, do they, are they permanently installed and that's where they live? Or are
they able to be moved around? That's my understanding that they're permanent,
that location, those were fully funded, the ones last year that were installed, and these
additional ones were fully funded and off-site for the testing, their marketing at that location.
Okay. And the reason I'm asking that is because I can't think of another event that uses that
So it's like a one-time, you use it once a year, so is that a one-time cost or is
there like a ongoing, like a subscription type? It's a one-time cost for installation
and the lifespan of those receivers for 10 years. Okay and those servers that
actually provides the Wi-Fi and I'm assuming that that's just a hardware?
It's more of a technical for IT but I'm going to try to simplify my understanding is they move the
current Wi-Fi satellite to hit the receivers of some Wi-Fi that were already made for it.
Gotcha, okay.
I just want to thank the team for putting it out of the presentation, and for your thoughtful responses to all of our questions.
I would like to move the staff recommendation.
I'll second.
so that would be a formal motion in the light that you will have consensus to
move forward to the City Council. If you have one last question around franchise fees in particular,
so we can go to our line for franchise fees. So, our franchise fee, when we had the impact fee for the
noise commandment contract impact on the roads from all the trucks going to the roads.
Is that concerning franchise fees or is that tucked in someplace else?
I don't have the detail of what is the makeup of the franchise fees.
It does come to us as a payment.
I can dig into how it's broken up as we receive it
from our corporate toddler.
We just calculate the actual toll that we receive,
not what makes up the total revenue individually.
So we can take a look at that.
But in my understanding of this, probably just
the franchise fees are not necessarily
costs associated with impacts on our rather traditional roads.
So I know that we were very mindful in how we did that calculation in this past negotiation.
But again, I don't know what we're going to get into a lot of that detail, but I'm curious about other franchise tax services,
like EMT Pay as a fee, EMT Pay as a Comcast pay as a fee, and the impact that their trucks have on our roads.
Do I sense that there might be some exploration of this thing?
Thank you.
Thank you.
I just want to speak about the heavy duty vehicles related to garbage vehicles.
So we do have inter-contract for vehicle combat fees, but it's a set aside for that we're
still working through other rules and how we can spend those funds, but more specific
for heavy duty vehicles for garbage trucks that we do have a separate account.
So that would not, where would that be?
That would be in the calendar, the general fund that we created with the new franchise.
So, just don't be curious about that if we can take that offline.
Okay, so I think I have consensus from the Council to move this item forward to the full city.
We have consensus from the committee to move this forward unanimously to the Council for its adoption.
So for item 3, do we have any public comment on the items that are not on our agenda?
Because this is the time for us to step forward and speak.
I receive no cards.
So we are closing public comment committee members any comments at this time?
Sigma is 501, temperature.