DATE: February 4, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: GENERAL FUND FIVE-YEAR FINANCIAL FORECAST, PROPOSED COUNCIL POLICY UPDATE AND APPROPRIATION OF FUNDS TO CALPERS UNFUNDED ACCRUED LIABILITY ACCOUNT.
RECOMMENDATION
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Staff presents the FY 2026-27 through FY 2030-31 General Fund Five-Year Financial Forecast for review, recommends approval of updates to the City Council Policy 200-13 - Financial Policies, and requests an appropriation of $1,339,141 from prior-year General Fund surplus to the CalPERS unfunded accrued liability account.
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BACKGROUND AND ANALYSIS
General Fund Five Year Forecast
The financial forecast is a forward look at the City of Oceanside's General Fund revenues and expenditures. Its purpose is to identify ?nancial trends and issues so the City can proactively address them. The forecast projects fiscal outcomes based on the continuation of current service levels, policies, and anticipated changes to revenue streams or expenses. It also incorporates historical data to provide context and illustrate the financial trajectory resulting from past decisions.
Generally speaking, positive results within the forecast indicate surplus funds available for new initiatives and projects, while negative results highlight potential budget gaps which could result in spending reductions. For this latest five-year forecast period, staff projects a consistent positive balance, beginning with a projected surplus of $3.69 million for FY 2026-27, based on projected revenues of $238.92 million and expenditures of $235.23 million. Details on the five-year forecast are included in the attached forecast report.
This financial forecast is not a budget or a proposed financial plan for achieving City or City Council objectives. Instead, it is a projection based on current economic conditions, consultant analyses, and staff assumptions, reflecting a consensus view of anticipated revenues and expendi...
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