DATE: May 20, 2026
TO: Council Budget and Finance Committee
FROM: Director of Finance
SUBJECT
Receive an Oral Report and Provide Comment on the Fiscal Year 2025-26 Monthly Budget Update
RECOMMENDATION
That the Council Budget and Finance Committee (CBFC) receives an oral report and provides comments on the monthly budget versus actuals for the General Fund for the period ending April 30, 2026.
SUMMARY
The City has taken a number of measures to balance the Fiscal Year (FY) 2025-26 Operating Budget in the General Fund. At the CBFC meeting, staff will provide a budget versus actual report of revenue and expenses for the General Fund for the period ending April 30, 2026, including a highlight of monthly salary and benefits costs and overtime by department (police, fire, and other departments).
Staff is highlighting the following changes since the last CBFC presentation on March 18, 2026:
? As part of preparing FY 2026-27 Budget, a deeper analysis was completed for all revenue, expenses, and transfers resulting in new changes to the FY 2025-26 budget
? These changes were offset by increasing transfers into the General Fund from other funds especially workers compensation and available cash in the information technology fund to balance.
? The Budget remains in balance but some items are at risk and further updates may be required. Staff has planned for this possibility.
Specific changes when comparing new forecast to the March 2026 report:
? Revenue is projected to be $2.3 million lower than February projections
? After comprehensive review of special pays and payroll cycles, the projected salary and benefits budget was increased nearly $10 million
? These changes were offset by reducing services and supplies, increasing transfers in from other funds especially workers compensation and available cash in the information technology internal service fund to balance.
? Staff is continuing to monitor closely and will again increase transfers if required to end ye...
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