DATE: November 18, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: FY 2025-26 FOURTH QUARTER FINANCIAL STATUS REPORT
RECOMMENDATION
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Staff recommends that the City Council accept the Fourth Quarter Financial Status Report and approve the attached budget adjustments.
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BACKGROUND AND ANALYSIS
The attached Fourth Quarter Financial Status Report summarizes the City’s preliminary financial results for the fiscal year ended June 30, 2026. The report compares budgeted and actual revenues and expenditures for the General Fund, Measure X, and major enterprise funds, and provides explanations of significant financial trends and variances.
The General Fund ended FY 2025-26 with preliminary revenues of $244.85 million and expenditures of $242.58 million, resulting in a surplus of approximately $2.27 million. The final General Fund surplus and its allocation in accordance with Council Policy 200-13, (Financial Policies), will be presented to the City Council in January 2027, following completion of the annual audit. Additional information regarding General Fund performance and the financial results of the City’s other major funds is provided in the attached report.
The financial information is preliminary and unaudited and remains subject to year-end adjustments and completion of the annual audit. Final audited results are anticipated in December 2026. Proposed fourth-quarter budget adjustments are included in Attachment 2 for City Council consideration.
FISCAL IMPACT
No fiscal impact
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed and approved as to form.
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Prepared by: Jill Moya, Financial Services Director
Reviewed by: Michael Gossman, Assistant City Manager
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. 2025-26 Fourth Quarter Financial Status Report
2. Attachment A Q4