This is by the 30th of 20th order.
The Finance Committee of the San Diego City Council today is Wednesday, September 30th, 2026.
I am honored when you please call the roll.
Mayor Ventales.
Present.
Vice Mayor Fiveros-Wolton.
Present.
Councilmember Victor Agria.
Present.
And would you please read your notes.
After each agenda item is presented, the mayor will ask for committee member comments and then take public comment.
You will have two minutes for your comment.
A countdown timer will appear for the convenience of the speaker and attendees.
With that, we'll go to item 2A of our agenda, which is the fiscal year 2026 preliminary
year in financial and performance measures report.
We've got, Assistant Finance Director, Felicia Silva here to present.
Members of the Finance Committee, Felicia Silva, Assistant Finance Director, here to
present the fiscal year 2026 preliminary year financial report, and do you want to emphasize
preliminary?
We are still working through final adjustments and we will also still need to undergo our
annual audit.
anticipate the annual item to come before the committee at the beginning of the next
calendar year.
Okay, so first we want to take a look at our general fund revenue and the first thing I'm
going to do is just get us oriented to the slides. On the left we have our general fund revenue
categories, and then if we go from left to right, we're in column B. What you see between B and C
are fiscal year 25 actuals and fiscal year 26 actuals, and then D shows a year-over-year comparison.
If we take a look at the box, columns E through G, we've got our amended budget as well as the
actuals and how we did compare budget to actuals. And first thing to note is a favorable picture.
From a budget perspective it was favorable. When we look at our trend year over year,
also favorable. Looking at, again, the comparison between 25 and fiscal year 26, we saw an increase of about 2%,
so $150.2 million in overall revenue compared to after the 127.7 in fiscal year 25.
And just staying here on the year-over-year trend were limited.
I was looking at columns D through D.
Just a few things to note.
We'll take a look at our major revenue categories
in the next slide, but overall, again,
looking pretty consistent year over year.
Some revenue sources such as utility users tax,
you sometimes may see a slight fluctuation based on
the timing of when we receive remittances
And we also have just some declining sources there,
such as cable TV.
Other than that, things looked pretty straightforward.
And then in the other tax category,
we'll see a year where your change was 15%.
And that was largely related to transient
occupancy tax, and it increased there.
So if we take a look at the revenue categories
that are not tax related, saw a pretty significant
year-over-year increase in charges for services,
primarily related to e-study implementation,
as well as increased regulation programming.
Interest in property income, down a bit,
but still very positive related to the interest
that would've been received over the last two years,
very robust interest rate returns.
And then we also do have a little bit of an anomaly here
under fines fees and market triggers and a negative 2%
in, sorry, 200,000 in fiscal year 26
and that's related to an adjustment
for code enforcement citations.
Community development was able to work
with the property owners for voluntary compliance
and we were able to reverse some of those citations.
And then down the license and permits.
Again, looking at the study implementation
and that year-on-year increase primarily
as well as the particular cannabis permit.
So that takes care of the largest variances
of the year-on-year, but overall positive 2% increase.
We focus our attention on the amended budget.
Again, positive overall, 1% increase.
received $150.2 million versus the budget of $149.4 million, and again, very preliminary,
but positive, and we talked a little bit about utility users tax, how we have a little bit
of a declining source in cable TVs, and also how sometimes those sources can be flagged
based on a remit timeline.
Property transfer tax, 84%.
I'll go into a little more detail on that slide.
And other than that, looking pretty consistent,
pursuing budget natural.
We've already talked a little bit about interest rates.
Looking like it's lower year to year a little bit,
but definitely favorable compared to budget
due to those robust interest rates for the year and intergovernmental seeing an increased
error due to FEMA reimbursements.
So with that, we'll move on to the next slide.
So general fund revenue budgets versus actuals in here.
We have our major tax firms.
We've got our property tax.
right in line with our long-term trend,
3%, largely driven by our secured tax
related to real property.
So when we look at that, when we see 3%,
we're looking at that 2% CPI that we typically get
and a little bit of growth that we always receive
when we have turnover in properties
and related improvements.
Sales tax, we did need to decrease
the sales tax projection by 2.5 million I believe at roughly at the beginning of the
beginning was I think our major budget which was April 6 council adopted that and but when
we look at where we're at overall we ended up more favorably there still looking at consumers
spending more on services, and then on certain economy that's overall impacting the category.
Utility users tax we've already talked about, and then franchise fees largely driven by refuse,
franchise fees and contract reimbursements, as well as recycling. And then the property
transfer tax lagging a little bit compared to the protection, looking at a high interest
rates impacting the willingness for property, potential property buyers to
make purchases, as well as the resulting unemployment of housing supply for turnover, and again looking at the overall
uncertain economy impacting property transfer tax. In other revenue, we have
all of our other taxes, we've got business license, we've got our emergency
communications, we've got charges for service and all of those categories and
what you see there is again just a recap of what we saw on the other slide where it's looking pretty
pretty favorable when it's compared to budget.
Next slide, this is the same,
but it shows it in a percentage format.
So I won't spend a lot of time on that.
Moving on to expenditures, total authorized.
When we're looking at our total authorized budget,
we're looking at the fiscal year 26 amended budget,
which would include carryover from fiscal year 25,
as well as any budget amendments approved by council
throughout the year.
We've expended again with preliminary results,
154.3 million and we have a remaining balance of 11.3 million
and just a reminder that we do typically come
in front of committee and council towards later,
towards the end of the calendar year,
where we will seek authorization to carry over
some buttons related to ongoing initiatives.
So here we have the picture.
We switched it up a little bit from the department look
to some of our major general body signature categories.
And the primary reason that we did that
was just having to crosswalk our financials
from our prior system to our new system.
So just easier to do it that way at this point.
And then the thing I want to notice here and point out
is we're looking at actuals that are pretty consistent
between fiscal year 25 and 26.
And then if we're looking at our amended budget,
we already talked about the amended budget represents,
and I'm on column E now,
but the amended budget represents carryover
from fiscal year 25 as well as the approved amendments
throughout the year.
Percent of budget, 93%.
Talked about that as well.
We do see some, what appears to be savings
in categories such as services and supplies,
but we know that some of our ongoing initiatives
may carry over into the next fiscal year
and we'll be back to you on council for that.
Salary is the benefit, it's pretty consistent.
2% change year over year
and within budget at this point.
And with that, I will move on.
So this is a look of a few different categories combined.
We have our enterprise funds which are business type activities where we expect those activities
to largely be funded by user fees, internal service funds where we are, we have our internal
service fund departments that provide service to the city and we fund those services internally
through user departments and then our parking funds which covers parking lot operations
and meters. We're looking at the revenue, we have a revenue budget of 61 million,
largely water pollution control plant on the revenue side. And then actuals you can see we've
got 69.1 million. So we, I'm sorry, are we okay? 69.1 million. And if we're looking at
And expenditures, we did a one point out
of the water pollution control plan here,
121.8 million overall across those categories, right?
Enterprise, internal services, and parking funds.
But I'm noting the water pollution control plan
as part of the budget because a large part
of that 121.8 million is related to capital.
They adopted a capital plan last year,
and so we do have a lot of projects
And we do see that in the budget and where we may not see any actuals today, we will
see that those funds carry over and those initiatives continue.
Moving on to fiscal year 2026 final performance measures.
During the budget process, we have each department propose specific performance measures to track
progress against their performance targets.
So we do have our departments here to help supplement
my quick overview as well as answer any committee's questions.
I'll give just a quick rundown.
Okay, so first we're gonna start off
with our city manager's office
and I wanna point out just a few here.
Definitely very positive and significant increase
in the city employee engagement,
target of modest target of 5%,
but with conservative efforts.
Who looked overall at an engagement increase of 60%.
Resolving liability in drug claims within 180 days.
A lot of times those cases can be complex
and it may not be resolved very quickly.
So a little below target there.
And then also pointing out the clean 80%
of the sewer system annually.
You can see we've got our targets at 80%
and the actual show 50%.
But what the measure does not contemplate
in terms of the sewer system are the miles
that need to be reclaimed.
So when we factor in those network,
sewer system network labs that need to be reclaimed,
it was actually, it would exceed the performance started.
Legislative, pretty straightforward,
measuring, the percent of time we're turning around
council and committee commission meeting minutes
and measuring the number of city council
and policy committee meetings attended by the City Attorney.
And finance, looking at the first measure,
meeting the statutory state submission deadline
of no audit findings.
It says NA, I just mentioned that we're working
on those final adjustments
and getting ready to start that audit process.
So we do anticipate contributing,
but it is pending.
and we'll see this updated next year,
but I do want to also note that fiscal year 25,
we did achieve this target.
And enterprise resource planning,
we met those milestones,
and then bank reconciliation is a work in progress,
but with the year-end key implementation
and staff turnover,
we were not able to achieve the 75%.
Human resources, looking pretty much in line in terms of vacancy rate and the percent of
employee participation, that survey did not occur this fiscal year.
We saw in the city manager's office the results being presented, but the actual work and survey
was conducted in fiscal year 2005.
and looking at information technology overall based on their established performance metrics
in line. Overall customer satisfaction 96% compared to a target of the library. People
again really are continuing to love to visit our library. So maintain in the library visits
as you can see, greatly exceeded the target of 292
and also continuing to maintain and increase
our circulation of physical and electronic items.
And overall, just positive compared
to really ensuring that we're leveraging
and obviously able to leverage our library resources,
recreation parts performance objective looking at the increase in the number of annual
recreation program registrations again positive 12,989 over target 12,100
there were a couple of footnotes here to note the number of annual facility rental hours we
did not meet that metric based on some delays and activating
important general results, and then there was the closure
of boom seed in the Marina Center for Construction.
And then looking at the Gulf performance metric
at the bottom, increasing the number of driving range
buckets sold, also did not meet that target
based on wet fall and winter conditions.
golf being out on the resort and can commonly have delays in openings related to a community
firefighter.
But still positive.
Okay human services, first one, the number of individuals served in the organization
for seeing communities and some program funding and I do want to know that this is a revised
target.
target was 575, and then upon researching that and understanding more about the measure
and how our community partners were able to measure, we did update that target to 4,765
still really exceeded the target there with 7,513.
And that is a result of those community partners really being able to leverage the city's dollars
in terms of how they're able to fully fund programs and serve more of the community.
Another measure increasing the number of flex rides by 5% annually exceeded that expectation.
and those largely due to an hands-to-me
outreach efforts, public works.
Pretty straightforward in line.
There's all the facility service requests
within five business days.
We had a target of 70 and that was at 56%.
And so part of looking at these performance measures is,
we're doing a couple of things, right?
So we're looking at, when we come up with the targets,
we're really trying to come up with our best estimate
based on resources that we have that can perform
these activities or any other operational factors.
And so resolving facility service requests
within business days, all of that coming up
target of 70% and with the results of 56% and other notes is the 98% and
factuals compared to the 95% target of illegal dumping cleanups which
excludes encampments. And also we have 100% over there too with a traffic signal
outages in issues that are resolved within one business day compared to a 95% target.
And community development, target of 75%, but able to exceed that target when it comes
to completing building decision plan checks within 10 days and exceeding all of their
targets in terms of being able to turn around the applications and hermits and checks within
the established timeline that they had established and then commercial incentive funds.
Also, knowing that the target was for businesses, but they were actually able to provide funding
to six businesses.
Fire code administration, first one just looking at that will be the request timeframe for completed plan checks.
They added a target, again when we're looking at our targets, what do we expect and their target was expected around a thousand of those plan checks.
they, um, and having established time burden for that, and then they, they met that, um,
and some measured in 200,000 times.
And then, important to note that the emergency response time, um, first, uh, unit due to
the scene, um, and under five minutes they had a target of, uh, 90%, and they beat that
by 1% and 91%, so getting to the scene within that five minutes.
hiring three officers per quarter, again, looking at the goal, and seven out of 12 for the year, and achieved their annual bias training.
And with that, I will turn it over to our departments.
If there's any questions, feel free, you can ask them more about their performance measures.
But I'm also here to answer any questions I have about the financial data that could be included with information on the performance measures.
But they will be your best resource in terms of best practices and operations, etc.
So thank you so much for your presentation. I want to take public comment on the side. Do we have any?
We do not.
close the comment to the side and then we'll move down to questions and comment.
Thank you Mayor. Thank you Felicia for that presentation. My question is on slide two.
You have two questions. Can you explain the, try to understand the negative 5% on the VUT
with regards to the year to end change?
So the new UT, again, there are a couple of factors here that we want to consider.
For reasons in a clear recording, you can stand for a couple of seconds, we'll just move the mic to you.
Thank you.
Well, I appreciate that. It is a little easier to see for you.
So for a new UT, we're looking at the different new UT categories that we have.
We have electricity and gas. We've got cable. We've got telephone.
the largest being electricity and gas.
And we do have some declining sources,
I know cable TV that can impact the results.
We do work with a consultant that helps us
look at our EMT projections and are able to keep
their pulse on what's happening in the various industries
and how that impacts utility user checks.
And in this particular case,
we can also see potentially again,
I talked a little bit about that remittance
could potentially lie based on remittance timelines.
So those are the factors
that could potentially impact the year,
the 5% increase is year over year.
And Nicole, I may have more insight.
Sure, thank you.
I'm happy to kind of expand.
I think Alicia mentioned some of the categories
of routine in declining revenues are related to cable.
So as people start to switch to streaming services,
we start to see people declining their usage
in traditional cable.
And so we definitely see an area that way.
Same with telephone.
As people start to change how they use telephone service
and the costs associated with those types of utilities.
So we did see a decline in telephone
but we might see a slight increase
that offsets in wireless.
The city is currently continuing to work on utilities
and tax reliefs to streaming services
but we have seen a decline specifically in people
year over year over the last couple of years.
So that's something that we see in the city of San Diego
but it's also, we're seeing kind of reach only
with some of our neighbors as well.
Gotcha.
Thank you for that in-depth answer.
I really appreciate it.
The other question is on line 13A, the year-to-year change
with regards to the fines fees on forfeitures a negative 117%.
I know you kind of touched on it a little bit,
but I kind of want to understand what does this entail.
OK.
So buying fees and mortgages, there could be any penalties that could be related.
In particular, this line, I go more looking at the results.
I was saying a crime rate of 117%.
It was primarily related to code enforcement activity and citations related to those activities.
And we were able to waive those penalties based on voluntary compliance
from the property.
I know community development can speak to it more,
but the property owner would instead
be able to invest in property and so voluntary compliance,
which is the goal, ultimately, for the property
to get into compliance versus having penalties.
So that's what he's using there.
Gotcha.
Thank you.
Those are our questions.
OK.
We'll jump into some of these as follow-up to the code enforcement penalties and the like.
I have a very strong memory of that 1.3 million dollars that we had really put some teeth behind code enforcement.
And if I'm reading this correctly, in 2026, we may have had some fines, but we gave back a lot more money than we took in.
We gave away $200,000.
Yes, and thank you for reminding me, I left out an important fact on the reversal of the citations, and that is, the citations can span multiple years, so in this particular case, the citations that, and the penalties that were waived, span multiple fiscal years, and so, it does end up showing up as an impact in this fiscal year,
but it is related to a long-standing case over a few years.
It's a very, it happens rarely, but it does happen
where sometimes you can see some prior year activity
show up in the current fiscal year,
and this is one of those cases.
Do you happen to know how many fines were issued?
I...
And were somebody with all the else war fines issued?
Yeah, it was probably best to speak to it.
Yeah.
is so far away, and the case should be seated in the front row, back row.
All right, good evening. I don't have that statistic.
We could find out.
The big picture is that we talk a lot about an enforcement culture.
We're really trying to drive that behavior.
And it's the case that businesses are just a lot more confined to the industry.
They used to be that's fantastic property owners are a lot more compliant than they used to be because they recognize that we're serious about enforcement
That's fantastic
But if for example, we're just having a hard time keeping up with clients that we're issuing and we're doing a lot of
Negotiation and cajoling and and then giving people money back because they finally agree to fix for properties after seven years
Then I think the discussion the way that we measure might be a different discussion, but we can talk about that
Thank you.
Utility users' tax following that.
I think that before this goes to counsel, was it in the staff report that break down
cable percentages?
Because I don't know that.
But the point, ultimately, what I want to convey is that understanding when you get
a variance saying utility users' tax is kind of predictable, is bread and butter, it's
like a property tax, and you kind of approximate what you're going to get.
And sometimes some things go up and some things go down.
But with electricity rates going up, with natural gas rates high, everything is more
expensive.
It's surprising.
So being able to say, everything was up, this is a hypothetical, everything was up except
for cable.
And cable is down 25%.
It just kind of gives a little bit more color.
So I do appreciate that question from the council member.
I just want to clarify one thing.
So I do appreciate that question for the council member, that's already done.
I'm sorry, I just wanted to clarify one thing.
I wanted to clarify one thing.
So these preliminary results will just be shared here at Finance Committee.
And then we come back, and so it's informational here.
And then for final results, and in the act for that is what is also really presented to Council.
Yes. But then my point is simply that, why don't we present that story?
Yes, I just want to take a moment to describe the situation.
This is a little bit of a, I'm not really sure question, so I think of tax revenues as growing potentially as we're going to finalize our numbers.
Or could our tax revenues actually fall as we're going to finalize our numbers?
But what would it be to see from this preliminary to finalization?
For the most part, our revenue, what we record out there is minimal adjustments that we make
between now and when we present the final results, but we do undergo an independent audit, right?
And so they will look at our financials and if there are recommendations, but those typically
are related to maybe reclassification, so I wouldn't necessarily think the revenue
would significantly vary from what we're seeing today.
I didn't know if you had a particular question
about a particular time, just in general.
My biggest, I'm just trying to understand,
this is 99% right?
Or when you say preliminary, I don't
know if that's even plus or minus 10%.
I wouldn't say, confidently, I wouldn't say that we're
going to have significant swings at this point.
Obviously, we did transition between the legacy system
and our new system and so that brings some potential changes that could have
heard that are not necessarily something normal that we see on a year to year basis.
But we do, like I said, undergo an independent audit and if there are directions from our
auditors, you know, we do make those corrections and we will provide those final results to you
in about February, February. Okay.
road impact component of the franchise fee?
I know there's some legal questions,
there's a Senate bill, or there's a bill passed
that was signed by the governor that says
it's okay for us to charge road impact fees.
Is that within the franchise fee?
And if you need legal input on that, just let me know.
I'm having it forever, where was the gentleman at first?
Are we gonna say the attorney?
Yes, thank you, Mayor, to your question.
So yes, there has been a change in the vehicle tax fee
with the legislation that does allow for collections
that we did come back to the Council
with authorization for an amendment,
but the Council, and this was then added some language
in there that allowed it to,
depending on the legislation that hadn't been passed yet,
allow the city to continue the practice
or continue the current contracts
and the way that the fee was collected
if the law was passed.
So we are not going to come back in.
We're not going to execute the amendment
and the ACI understands that in a reason.
So we're going to continue the process
as it was originally negotiated.
The essence of my question is the road impact portion
then that's captured as franchise B. It's in that number of the seven or whatever.
It is and I do want to, I just want to clarify for presentation purposes there is some
franchise penalties but we are tracking those elements separately so the game
would in fact be is being tracked separately and we can make the distinction
and that report to council.
But it is, for presentation purposes,
it is captured there, but we are tracking.
Perfect.
Another thing that would be useful
when it comes to the real property transfer tax
is to have some visibility into the breakdown
between residential, commercial, industrial,
because some are a lot more lumpy than others,
except when we go to do a forecast,
it's not literally just saying,
oh, last year was 10,
well, this year was gonna be 10,
but really understanding the root cause
and what's the likelihood,
because sometimes certain markets are hot,
but others are not.
So thank you for that.
We'll just do a quick time check here.
Okay, so I'm gonna break it up a little bit.
We're gonna have Vice Mayor, way in for a while.
Thank you.
So I'll start with finance, and then I
have some questions on the performance objectives.
And then after I'm done with finance,
I'm going to transition over to the performance objectives
kicking out of the library.
So I'll just come on down.
So, in terms of kind of the overall projections,
they sound, they look like they're pretty spot looking
at slide three of the general fund revenue projection
versus actual, was there anything different
that we did this year?
Or is it pretty, or is it not unusual for the budget
versus the actual to be so kind of meeting each other right where you were
intended to do it. That's a great question. You know the general plan in particular is
obviously about to wash very closely not just once a year but continuously
throughout the year and so we work very closely with consultants who assist with
us but we also look what's happening in San Leandro. So consultants can help us
understand regionally what is happening, but we as employees of the City of San
Angel have a different pull on what we're seeing. And so I think some of our larger
buckets of revenue, which are property tax and sales tax, you know, we've been very
consistent with the growth that we've seen year over year in particular with
property tax. So, you know, we've been very close every year, at least the last two
years that I've been here. What I would say with sales tax is, again, that we work very closely with our
consultants. And we need to court early, but then we also, like we're meeting with them, we are talking
about things that we know is happening here in the city of San Diego. And so the goal of a ways is to get as
close to our projection as possible. You know, you never want to be in a situation where you're projecting a
higher amount and collecting lower and now you're looking at potentially having to depend
on reserves to balance the difference, and so it's really a balance of being conservative
and not overestimating your revenue, but being very thoughtful and really keeping a pulse
on how more revenues are trending really months over a month, and then again some of those
larger buckets really keeping a pulse on them like sales tax, understanding what's happening
in the economy globally, what's happening in the United States, but also regionally
and here in San Leandro. And how are we seeing consumer behavior in the city of San Leandro?
And so we keep a pulse on those. It was mentioned previously that property tax, transfer tax,
is a very volatile, and it is one that we try very hard to manage our projections, but
it's really highly dependent on what's happening in the economy. And so we try to bring our
and bring our council overestimate that.
Again, it's something that we look at.
We work very closely with economic development
and we know that there's these commercial properties
that are going to be transitioning,
and so I think it's a collaborative effort
of our expertise in finance, working with departments,
and then working with our facilities
to make sure that we're as aligned as possible
with our revenue projections.
Thank you.
I'll go on to slide six of the presentation.
And I'm particularly looking at, I just want to kind of want to take a step back.
Again, my goal for the year is to make the implicit explicit so that folks who are listening can follow us along.
So the goal, if we're looking at EFNG, the goal is to get as close to 100 percent as we can, correct?
That's the, so if we go above or below, well, on expenditures, we want to go below in revenue we want to go above.
But overall, when you're looking at a percentage of the budget, you want to get just close to the hundred percent that we have, so is that correct?
That's correct. I mean, we present a plan to the Council for Consideration and Adoption because we have plans to use those tolerance.
sometimes with planning change right and so but yes we are our goal is to get as
close to our projections as possible you don't necessarily want to be in a
situation where you are expanding more than you have authority. Thank you.
I may have a clarification point on that. Yes that is true when you look at line 13. So when it comes to
UCLA is a little bit surface by city.
There could be movement throughout the year
due to the fact that if we have vacancies
in some positions or departments,
they may have to offset those vacancies
within a year with contract employees
which would be, or contract just between services.
So it's really the overall number
that we're looking to be under
or at 100% for expenditures.
You read my mind, because that was about to double click
or underscore a couple of the outliers in that table,
particularly salaries and benefits.
I don't understand this blind eye.
What does supplies mean and it's...
Yeah, sure, I'm happy to elaborate.
So salaries and benefits,
I think that's pretty self-explanatory,
but that would be all the wages and all the benefits
that accompany our regular, part-time, seasonal, et cetera.
workers and benefits, we're looking at typically pension, health care, some of the larger ones.
Services, we're looking at professional services, consulting, legal, or two main ones, and supplies.
We're looking at, it could be general office supplies, which is a big dollar amount, but that is widely used throughout the city.
We could be looking at supplies associated with maintaining our buildings or our parks
or those type of things as well.
And then loans and grants, we do have some loans and grants that orders that the city
is the loaner or the grant board, and so the line will reflect their debts.
where looking at debt service and fixed assets is related to potential equipment and activity
for items that would be over a year in terms of useful life and over about $7,500.
And then ISF is our internal service fund cost, and those are the costs of our internal
service fund apartments, so public works and their facilities maintenance or
their city garage, information technology, our self-insurance, etc. So those are the
general funds portion of those costs. Thank you. Before I transition to the
performance measures, I wanted to explore a little bit attachment A and let me
you just make sure that it is in fact a touchment.
Vice Mayor, could I just add a little context
of this slide before I do just want to point out
that we do need to make an adjustment to COVID-19.
I realize that the percentage over
submitted budget is not accurate.
So for example, if you look at line two,
we have an amended budget of 73.4,
but we only spent 72.2.
So we didn't actually expect 107%.
It's actually less than 100%.
So what we will do is we will correct this slide
and we will either work with the city clerk to republish
and or we will provide you with a corrected table
after this meeting, but I did want to just let you know
that there was a correction you do made,
but that the columns E and S are accurate.
And so if you're looking at line 13,
you will see that the council have authorized
the general fund expenditure of 165.6,
and that to date, what was extended, is 154 points, right?
So again, we still are under that authority
that we were just talking about,
but I wanted to just make sure that we call it out,
that we will make those corrections.
But we did talk a little bit about the importance
of hitting that closer to that 100%,
so I wanted to make sure that we elevated that.
Thank you for that.
I wanted to transition our attention
attention A, which is the preliminary year-end financial report, and then I specifically
wanted to explore a couple of the enterprise and internal service revenue funds, particularly
where I'm seeing kind of the outliers, which is the water pollution control plant and the
shoreline enterprise.
And I was hoping in a little bit more context between those numbers just for the folks,
this is not being recorded with the video, the water pollution control plant.
We are looking, actually I'll let Gallatin in it,
but those are the two specific ones that I see as outliers
in there that I wanted to get a little bit more context in.
Sure, and Maya, can you pull up the,
please, there's a word which you can go and alter it.
So it's attachment A.
It's attachment A.
It's attachment A, and it is the tables,
all the attached with all the tables.
And I'm looking at page two,
which is titled preliminary year and financial reports,
specifically on enterprise and then internal service funds.
Mm-hmm.
So, one or both of you can come in,
I'll wait for Mike to drink that up.
But from a revenue perspective,
one of the, so a couple of things.
We are looking at user fees, and there was a 9% increase that was approved, so you see
that factored in.
There was also a grant that the water pollution control fund received.
So that also is included on the revenue side, which would then show up as a year-to-year
change.
And then on the expenditure side, it was the adoption of the CIP, or Water Pollution Control Plan.
And so they did have a CIP plan that was adopted by council, and she's looking like, if you can help them to...
It's true.
It's true.
Looking at Water Pollution Control Plan.
And so, and then I'm in particular speaking to a percent of budget on the expenditure side when looking at the 39.7, actually that's the 67.2 budget, it is an amended budget so it includes carryover in his worst capital projects, et cetera.
So, was there anything else that I, the Shoreline Enterprise, that was the other outlier?
So, Shoreline Enterprise from a revenue perspective, it does include activity related to the Shoreline
development that is in the Vanguard Sea proceedings, and so there will ultimately be some reconciliation
of revenue associated with that,
but when you look at the,
we're looking at, and we don't have any columns up,
so we can just take a second to get oriented.
The first three columns that you see
with budget and actuals are fiscal year 24-25,
and then we have the second three columns
a budget to actuals, which is fiscal year 2026.
And then a comparison is fiscal year 2425 versus 2526
as part of the right two columns.
So I'm not sure exactly where we want to dig in further,
but those are a few different things that are going on
As I do it with our pollution control plant and the shoreline activity.
Thank you.
As this gets you counsel, I'll make sure that this is the table.
Yeah, go for it.
So on the same table, I'm curious about stormwater revenue.
Mm-hmm.
I thought that was a fee per parcel.
Mm-hmm.
And I'm trying to figure out, why would that grow?
So what you see there in revenue, it is static because there are no increases that we have
that are approved for that.
So one went into the base and then we've got a transfer that was from the general fund
to stormwater for officers.
Thank you.
or combined to the student's point.
Thank you.
So I'll build on the end of my overall finance questions
in terms of the year end,
kind of where we landed on the year end projections
versus actuals.
Do you want me to transition over to the,
or are we all done with, okay.
So now we're going to library.
And then after that, I'm going to part,
so I'm going to go to all the works.
So, thank you.
Let me just go back to my tab.
OK.
So, library.
So, congratulations on the increasing visits.
I'm trying to identify why we have so many annual visits.
And the reason I'm asking that question is just in light
of the service cuts.
I'm one impressed, and two a little curious
about how that's happening.
And the question I had is, are special events
that happen at the library, do those count towards its annual?
It's not just people checking books out.
Correct.
It's everything we do.
So it could be people coming in during the farmer's market.
It is the door count, so we don't count the parking lot.
But it is people coming through the doors.
So it could be people that are attracted by farmer's market.
And last fiscal year, we'll see what this fiscal year's farmer's
market is in the next couple weeks,
because it ends in the next few weeks.
But they told us last year that it was the record attendance
at our farmer's market.
So that could be contributing something like that
where people are there already,
they're coming in, they're using the facility while there.
As well as our other special events,
like Luchioli Ray or the Gospel Choir
or things like that for our heritage ones.
And just our regular programming,
we have done a better job of making,
we still have work to do,
to making it a little bit more dense.
So we're not having programs that are,
we spend a lot of energy on that aren't well attended,
but as an example, our story times, our state of play,
some other children's programs,
that number, forget each program, has been increasing.
We're, it sounds crazy that we're, you know, 2026,
and but we're finally seeing return after the pandemic.
It took a while because, especially those programs for the young, there were three,
four years where people who had children, especially first-time parents, they didn't
have the exposure coming to the library and didn't have the fellow families, the neighbors,
saying, oh, come to the library with us.
So we had to rebuild that entire structure.
And now we're finding it back.
So I think a lot of that is the programmatic things we do, some of which is also the exhibits.
that's drawing some folks in that we hadn't done prior.
And then just in general, people who are using the library
more, we now have other uses that are drawing people
like the study pods.
So we're finding new ways to still be
relevant for the community.
And then what is the annual program?
I'm looking at one, two, three, the fourth line?
What is that in the program?
So all of our programmatic, so like I mentioned before,
storytimes are anything that we put on something
that people can attend, we wanted our attendance ratio
to increase by 3%.
So if there's, so based on the number of programs
we do versus the people who attend,
we wanted that attendance average to increase by 3%.
So the goal was to get to 61
because we were at whatever under 3% is of 61,
but we overshot it and got to actually 65.
Okay.
So I think that also bolsters your earlier assertion
that the programming is bringing people in
because we even went higher than what we expected.
Thank you. I just, in terms just in light of what in light of what residents keep
bringing up to me is around the kind of day-to-day attendance of the library and
the impact of the closure of the reduction in hours across the city and
And so, that's just as we go towards the full council,
I anticipate that question coming,
so I'm just kind of flagging it.
Those are all my questions on my current, oh.
When did the closure start occurring?
When did the closure start occurring?
We started at the fiscal year of fiscal year 26.
July, they're in July one of 25. Yes, thank you. This is your middle year.
It's a full year of Sunday or Monday. This was Sunday, no Sundays, and three hours Monday removed.
Since we're still open in 26 on Mondays through five o'clock on Monday.
but it also included Mulford mostly closed the entire year. I think we had 12
weeks where it was open and then it was closed entirely because we started
renovation. So that was a big factor as well. Thank you.
those are my questions for life or education.
So, parts.
So, one, I know that the overall goal of recreation of marks
was to increase revenue as a kind of overall goal
on bringing in money through registrations,
extended programming.
And I'm looking at the increased number of annual program registrations
You know about 800 additional
Registrations. Does the registrations, is it, is a group of just one person?
Okay
So it's one person per program. So like if I have a child that
that I signed them up for four sessions of summer camp.
Is he counted four times or is it counted one time?
I believe it's counted four times
if you submit it for four registrations.
So it's each registration increment.
Okay, again, one of the other metrics
that I'm interested in looking at are individual served,
so a number of individual served, unique individuals.
And then, like, my son accesses,
like, it's one individual that accesses
four to five registration programs a year.
That's not even counting, like,
the stuff that we show up to the,
is like, no registration needed.
And then, I did want to ask around the decrease,
because the goal was to increase the number
of annual facility rental hours, but it was decreased.
And what happened was that it decreased.
And I wanted to get a little bit of context around that.
Can you talk a little bit about it?
Yeah, so one of the rooms at the Marine Community Center
that gets rented out significantly is activity in our seat.
We had to close activity in room C,
and I think it was closed for the entire year,
for renovations.
Those renovations are close to concluding
when we can start renting it again.
So even fiscal 27 is gonna be impacted by that closure,
but that room accounts for 1,000 rental hours.
So that room alone is the significant portion
why we didn't meet our target.
And so we're really looking forward to getting
that rig back online with the rentals.
The other thing is we intended to start renting
out basketball courts, pickleball courts.
It took a while for us to get that online.
So the delay in getting those reservations online,
I counted for another 1,500 around flowers.
So we would have been probably right at our target
how we've been able to get all of this online
for the fiscal 26th year.
I also wanted to just highlight,
and I'll be doing a better job of doing this out in public,
but I've had, I'm looking at the goal
of increasing the number of driving range buckets,
was 131,000 and it ended up being 123,000
and the justification was that there was wet conditions
during fall and winter, and there was some reduction
in operating hours because of that.
But I just wanted to highlight that the feedback
I've been getting from the restaurant upgrade
that Yelton has been really good,
very positive feedback on that.
So I'm out there talking about,
let's go have lunch at the golf course
so that we can look at the view and also enjoy the food.
So, I don't know who was in charge of doing that, but good job.
The restaurant, I have yet to go, but people were telling me that they were not expecting
the food to be that good and that they wanted espresso drinks, and I was like, just drink
drink coffee.
I'm working on counting the consultants to get a copy going.
Well, I just don't want to deal with it, right?
Screen drive.
OK.
Thank you.
Those are all my questions on recreation and parks.
And finally, public works.
I think that Public Works is one of a few recreation library that is really publicly
out of place and it's a really tough balance because you have two clients.
You have a public as a client and you have a city as your client.
And so it's kind of like it's really difficult to kind of reconcile and do that.
And as we talk about it, as I talk about it, about the importance of public works around
in the community, I think that there's other external type
of metrics that y'all do that are doing really well
that I think might benefit from including,
and I know there's a lot more metrics
that y'all are tracking that are not included,
but I've seen that half of two of the four performance
objectives are internal and two of them are external.
And I just would want to highlight that.
It's not necessarily a question, it's more of a comment.
Because I am, I'm just, I wanna be sensitive
to the fact that you, like, you have a,
like I said, you have two clients, two big clients
and they're just really hard to better read and style.
That was, it was really more of a comment.
I'm sorry, I have made you want.
Because when I was looking at my notes,
I had you down, but I did not have questions.
It was more of a comment.
But if my colleagues can throw Miss Raquitzes a question
so she didn't come up, like you say in Spanish,
the yokies, I feel a little embarrassed
that I made you want it today.
I've got a comment.
OK.
So looking here at a cleaner movie,
dumping, also peaceful that include graffiti. So that's kind of also a high
impact visibility thing. And then to be able to share publicly something that's
a little bit, gets a little bit more into the weeds like 70% within two days, 65%
within one day, so majority within one day. And then we can start figuring out
Also how to increase, what do we say? We're at 98% within three days. We're kind of done,
for all intents and purposes. But now is the time to kind of tighten the metric.
In that case we're going to measure it in two days. And that's at 78. Maybe we're going to get to 85.
Whatever the case may be. So that's something that's relevant. But I think that's it for a little risk.
Those are all my questions on the performance measure that I'll probably come up with more
as we head towards the full council session but again, I did want to elevate the through
line around internal and external impact and how the community experiences some of this.
I know that a functioning city and a well organized city is beneficial to the public
But they may not feel the impact until all of a sudden, anyway.
So as I'm looking through the performance objectives, my brain immediately goes into
internal versus external impact, public impact versus internal impact, and how we present
those and how we talk about them similarly to the mayor's comment around
cleanups and that's something that's very visible to the public and that's
something that people kind of look at and you know it's very obvious because
it's a physical environment that changes very quickly so that's that's that's it
was really just when we, when we talk about these performance objectives I'm
looking at that with those two lenses is impact to the public versus impact to
kind of the internal operations of running a city. I'm looking at my comments
appreciate your time and patience as I took a long time.
Okay, just very quickly running backwards since we're talking about the metrics.
They don't want a time within the last year we talked, when I came to wastewater, about
the importance of upgrading the wastewater pipes and how various organizations like Core
are going through a hyper management process.
We're going to be 5% per year, 1% whatever
the number happens to be.
We've increased fees and are going
to continue to increase fees at a cliff that
lets us build up a reserve to deal with that.
I don't remember saying we have a percentage of pipes
that we inspected and replaced per year.
I'll toss it out there for consideration for our next meeting.
We're going to bring it up.
that facility is going to be half a year ago.
It's useful to have data across years on metrics.
Because part of the story we're trying to tell
is that we're becoming better at what we're doing.
And so we've seen, OK, in the library case,
we are getting more visitors over the last few years.
It's been a steady increase of 5% per year.
People are coming back to libraries, et cetera.
It's very hard to understand that and tell that story
if we don't have some kind of time series data.
So if we could please make sure that that gets shared.
Page 18, I can't remember if it was on page 18.
So if you go to the next slide.
And this one was the, I have 10 business days.
So I did note, so the question there is,
is this 10 business days or 10 calendar days?
Typically, you may see the word business
and certain things mean business.
So I'm gonna shout out in the back of the room
and I can repeat it for the record.
So is this 10 business days or just 10 days?
That would be, yeah, so this is the complete plan checks
within 10 days.
I think I'll give you the answer.
I think it would be, I can confirm,
but I'm pretty sure it would be 10 business days.
And that's my suspicion,
and just as we go to tell our story,
to the council eventually,
to make sure that we're really clear, really explicit,
Because some things are 10 days, or like three days.
I'm assuming that the graffiti cleanest
version I've ever seen is like three days.
But if I'm wrong, then I'm going to say three business days
in that.
Thank you.
Perfect.
We talked about dropping illegal dumping and stuff in two days
and how we might do that and showing that data.
So thank you, Director Marquesis.
Yes, ma'am.
Thank you so much.
Just for clarity purposes, for the record,
These aren't fiscal year 26 targets that were approved by council in fiscal year 25.
So this is the past.
We already have fiscal year 27.
So that would be where we come to council on what would be the fiscal year 28, 29
performance metrics.
So yeah, I just want to create a clear record, because sometimes I feel like
things are said that aren't necessarily captured.
And the example of that would be the pipes.
I haven't heard any return on the discussion of what is our pipe replacement
plan. We do 5% a year, and we've done something like that.
I think what I'm saying is that when we bring the performance metrics to Council for approval,
that we decide for Council to tell us we want something else. So these are already approving
this time as best. So I have a note so that when we do it, we'll bring that back in, but
it will be perfect.
And then that's final. I think the objective on the Council in the discussion has always
that we're creating metrics as goes back to 2023.
We're creating metrics so that we can understand
what are ways to measure service delivery
with the objective of decreasing the cost for delivery
and increasing the speed of delivery
and bringing people the tools, the training,
the capacity, more resources, so that that can be done,
that we had to start some place with some sort of metrics.
So I just, I don't want that to get lost in the discussion
because we don't talk about this very often.
13, age 13, if you remember 13, I don't want to worry
about that, back to our installations.
I can only get that our goal is 75% with the new system.
Is it fair to assume that we're going to hit 100%
within 30 days and if not, just kind of going forward.
Give me some sense of why to find out.
Okay, no, I appreciate the question.
We obviously did not achieve even when it says
it isn't a percentage and we should
require it on a percentage and unfortunately
I would have to present it to zero percent
over the last fiscal year.
The new system will allow us to more efficiently close.
We are working through challenges of closing
the new system, but I would say that we were closer to achieving the 75% goal in this correct
fiscal year, if not higher, and moving towards 100%.
And so my recollection is that that was actually an audit finding about three years ago, that
we just had a core issue there, and one of the motivations for the system was to be able
to speed things up, and so as long as we can be very clear that that's the expectation
Going forward with any system page 9
Resolve liability tort claims within 180 days. I think that it would be useful as we think forward
to address to segment our claims
to like big high medium low
Accept that there are some claims. We've got a claim for $10,000 and it's relatively consequential
You know, that should be relatively easy to resolve better than some multi-million dollar claim.
That's inherently not going to be, not going to get resolved.
I think a little bit of gradation at the high, medium, and low would help give greater meaning to this.
If you want to add anything, Deputy City Manager?
I think you may have just wanted to acknowledge your comments, and it's absolutely something that people can do.
stormwater we got the transfer that did raise the question for me I think we've
gotten a million or two million dollar grants related to stormwater like the
trash capture devices and their maintenance where does that report to do
the sign stormwater fund if it's a grant that we've received we actually have a
grant fund and we account for any grant fund in that particular fund we also
also track it by a particular, whether it's a state, federal, or local branch.
And so from a financial perspective, that is where we track the dollars.
The next election in the context is when our question was similar to the order of
one to two million dollars, so it wasn't just a few hundred thousand.
And so just trying to figure out, would that then appear as an internal
transfer?
So it'd be starting that fund, and then it would come over when we do the work.
and so we see a really other transfer into some water.
Not necessarily.
It may just be accounted for within that grant fund.
So that when we are doing the necessary reporting
requirements, that it's staying within that budget.
So the project might have multiple funding sources.
There might be some funding coming from sewer,
and then there'd be accounting for the actual grant itself.
So that we can track that, make sure we're meeting all our grant
reporting requirements.
The reason that I ask is, ultimately,
understanding what is costing to run our stormwater system
is one of the objectives, really,
to tell the public what it costs to run the system.
And right now, I'm not quite sure how to get that answer.
So that will be the ultimate goal.
I'm not going to be determined here today.
But to be able to tell the public it costs us $2.3 million
to run the system.
And we've been blessed because we got $1 million from the state
to do this. We've got half the length of the chance to do this. And so we've been managing
to not subsidize the fund to the level that needs to be subsidized, but it's not readily
apparent from the numbers that I've poor-printed and the attachment that the vice-marital is
referring to.
Okay, the last couple of things now coming to the budget team. There's that slide where
So we've got $121 million.
I'm not really quite sure how to think about this, because on its face it suggests that
we budgeted to spend $122 million, but we only spent half of what we budgeted to spend.
That's a huge belt there.
budget really should have been, well, we expect to spend 40 this year or 60 this
year, then 40 and then 20, then it strikes me that for budgeting purposes, that
should be how it's characterized, as opposed to just having, oh well, we have to
carry over and we're just gonna keep carrying it over. I don't know really if
that's a city manager question, a assistant city manager question, a finance
question but it just strikes me as this is not a best practice and so I would
appreciate we can revisit this we should be budgeting what we expect to spend in
a given year and then we can budget we have commitments expectations about future
So I think that's wonderful, but let's not say we're going to spend 121, we're not going to spend 121.
Okay. And then the carryover discussion. That's my last question.
When we're talking about carryover, are we talking—when you use eternology carryover,
Are you purely talking about appropriated monies or do you include authorized monies?
i.e. budgeted monies and then when you say authorized I'm assuming that you really
budgeted not appropriated so there's some of the terminology that's a little wonky here
and so that we're going back to the question when you say we want to carry over money
is that we are carrying over appropriate dollars, or some other measure of dollar?
We are carrying forward appropriate dollars, so as part of the budget process, you approve
a budget appropriation, and so if those funds are carried forward, we're caring for that budget
to appropriation of the authorize?
Well, this is the way.
And then we really want to be very careful, this is finance,
so let's get into finance.
I keep hearing different words used.
I hear budgeted, I hear authorized, I hear encumbered,
I hear appropriated.
When I think of appropriated, based on the understanding
that I walk into this meeting with,
I hear that the City Council has approved
that this money on this contract gets used.
It's a $5 million expenditure.
Here's a contract, a council has appropriated that money.
It's not just in theory budgeted, but the council said,
now go and convert those dollars into general fund.
That's when I hear appropriated.
That's when I think of it.
Are we using the same words when we say appropriated?
That is correct.
Yes, I agreed that that's what, that would not be how I would design it,
that we are getting authorization from council to appropriate dollars for a specific purpose.
And so that also is when we present the budget to you, so that $165 million,
it was approved by council and is appropriated to spend. The carrying forward that we do bring
forward to council, there's two different forms, there is appropriated dollars that are attached
to a contract, so they're in the comfort, and those carried forward as Council gave authorization
to appropriate funds to bring out, or to report those contract services, as an example.
We also do bring, as a separate package, like we will bring in October to this committee
and then to council are if a budget amount was approved for 2026 it was
unspent and it was not attached to a contract. We would bring forward to this
committee and say we have a certain dollar amount that was unspent and we
want to carry that unspent forward to fiscal year 27. So there's been two
pieces to your question. There's the appropriated funds that are attached to
like a contract or purchase order and we have uncovered those funds and those
those are carried forward. And then there's the second component which is
some funds that are not spent, approved by council, and we're asking permission to
carry those forward and appropriate those dollars in 2027 to use.
And so when you use the term authorized,
are you using the term authorized
as an equivalent term to appropriated?
So yes.
So under a resolution, we have to seek authorization
from counsel to appropriate.
And so to appropriate any kind of dollars.
So for example, the budget.
So let's get a little bit previous news.
You just use the term authorized.
Ultimately I just want to use the same terminology, I want to use consistent, accurate terminology and to the extent that I need to learn it, just teach it to me.
But if we're not being consistent,
and that's why it's confusing,
then we want to clean up the inconsistency.
Is it the next page?
I just remember the word authorized.
The first, yeah.
Authorized, is that the same thing as appropriated?
Correct, so what it's referring to is that
the City Council gave the staff authorization
to appropriate 165.6 month.
So if we can just run.
I agree with specific terms, and so I'm going to actually disagree with my plan.
I've heard the distinction between authorized and appropriated at the Air District, and
I really want to just, I just want us all to use the same words in some way.
I would actually say that the two words that are exactly the same would be authorized and
appropriated, not appropriately.
authorization or approval is the action the council takes is the act of saying
yes and so the council approves adopts authorizes those words are the same you
either authorize the appropriation of a name right so saying those of you
165 million dollars budget and we are going to say that within the 165 million
You were going to spend, I'm making a mistake but I'll be able, $10 million on a contract
for a bank.
So you're going to appropriate the $10 million for a specific bank.
And then, the next step in encumber is to ask about the encumber is the action.
So you take the approved authorization, which I'll say in an integral.
Finance staff does the encumber action.
So from your approval authorization of the appropriation, finance has been asked to take
would come. Because for example, let's say you approve or authorize an appropriation
for a contract particular unit, and for some reason, my hands never get around that actually
encumbering it, we won't find it in the system. So step one happens, step two didn't. Most
of the time, all the time, I find it's step two, but that is a separate step. So, they
are loosely interchangeable, but they are specific things that have to happen.
Yes, as long as we use the words consistently, because I think they mean subtly different
things.
We have a slide that we use where we have four different categories of funds.
In comfort, restricted, appropriated, right, there are just four different, maybe five,
there are nuanced differences there. I just want to make sure that whenever we
use terminology, we're using the consistency the same way. Okay, well, thank you for all
of the detail. We definitely, you get a flavor of some of the things that we're
interested on a go-forward basis, but we're very grateful for it. All of those
that goes into it, it's hard to track all of this information. So, that being said,
we're going to call a comment on items that are not on our agenda. Do we have any today?
Thank you.
Maybe we didn't have any.
So we'll close both comments about anyone being present.
Any committee member comments?
Seeing none, we are now adjourned at 6.50.