Title
Discuss end-of-year budget adjustments for Fiscal Year 2025-26.
Body
REQUESTOR:
Finance Department
BACKGROUND:
The City is completing its annual year-end review of the Fiscal Year 2025-26 budget in preparation for the September 30 fiscal year close. As part of this process, the Finance Department, in coordination with other departments, has reviewed projected revenues, expenditures, outstanding commitments, and remaining budget authority to identify necessary year-end budget adjustments.
This review is being completed concurrently with the Fiscal Year 2026-27 budget process. Based on current projections, the General Fund is expected to generate approximately $350,000 in year-end surplus available for City Council allocation, while maintaining the City’s targeted General Fund reserve level.
A separate informational memorandum is included with this item and provides additional detail regarding the General Fund revenue and expenditure adjustments, prior-year funding actions reflected in the amended budget, and the calculation of the projected year-end surplus.
DISCUSSION:
Staff will provide City Council with an overview of the proposed Fiscal Year 2025-26 year-end budget adjustments and the General Fund’s projected financial position.
The proposed adjustments align individual revenue and expenditure accounts with current year-end projections, provide sufficient budget authority for anticipated obligations, and recognize appropriations that are no longer expected to be required before fiscal year-end.
After incorporating these adjustments and retaining the amount necessary to maintain the City’s targeted General Fund reserve level, approximately $350,000 is projected to remain available as one-time FY2025-26 surplus.
Because these resources are nonrecurring, Council may consider allocating the projected surplus toward one-time priorities, retaining all or a portion within fund balance, or providing other direction regarding its use. Any Council direction will be incorporated through the appropriate budget amendment or subsequent Council action.
Final Fiscal Year 2025-26 financial results will be confirmed through the City’s year-end close and annual financial audit.
FISCAL IMPACT:
Approximately $350,000 in projected year-end surplus.
DISTRICT:
Citywide
POSSIBLE COUNCIL ACTION:
N/A
ATTACHMENT(S):
1. Memorandum
2. After-Action Report
3. FY 2026-27 Proposed Budget
4. Presentation