DATE: December 17, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: FY 2025-26 FIRST QUARTER FINANCIAL STATUS REPORT
RECOMMENDATION
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Staff submits the First Quarter Financial Status Report and recommends that the City Council accept the report and approve the proposed budget adjustments.
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BACKGROUND AND ANALYSIS
The City Council adopted the FY 2025-26 budgets on June 4, 2025. The approved General Fund (GF) includes $231.49 million in revenues, with recurring expenditures totaling $230.16 million and an additional $4.38 million allocated for one-time costs, for a total GF expenditure budget of $234.54 million. Across all funds, the City adopted a budget of $624.65 million in revenues and $626.56 million in expenditures.
This report summarizes the preliminary General Fund and major operating fund results as of September 30, 2025, representing 25 percent of the fiscal year. It is not intended to capture all transactions but instead provides a high-level comparison of budgeted versus actual revenues and expenditures. The financial status of the Water Utilities and Harbor enterprise funds is also included. The report is designed to give the City Council and the public an early overview of the City's general fiscal condition as of the end of the first quarter of the current fiscal year.
As of September 30, 2025, General Fund revenues totaled $31.77 million, representing 14 percent of the annual revenue budget. This reflects a 21 percent increase compared to the first quarter of FY 2024-25, when revenues accounted for 12 percent of that year's total revenue budget. The General Fund's largest revenue source, Property Tax, is primarily received in December/January and April/May; therefore, receiving only 14 percent of budgeted revenues in the first quarter is expected and consistent with prior-year trends.
Total GF expenditures as of September 30 amount to $60.79 million, or 25 percent of the total expendit...
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