PREPARED BY: ARTURO CASTILLO DATE OF MEETING: 08/04/2025
SUBJECT:
TITLE
CONSIDER ADOPTING A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO APPROVING THE MID-CYCLE BUDGET AMENDMENT TO THE BIENNIAL 2024-26 ADOPTED BUDGET TOTALING $593,508
CEQA: This proposed action is not a project as defined by CEQA.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Compliance statements
Continue Best Management Practices, Fiscal Excellence, and Fiscal Transparency is an adopted City Council Priority contained in the adopted Fiscal Year 2025-2027 City Council Priority Workplan, effective April 7, 2025.
BACKGROUND
The City of San Pablo adopted the FY 2024-26 Biennial Budget on May 20, 2024.
Throughout the fiscal year, the budget is reviewed to confirm that budget assumptions for revenues and expenditures are in line with adopted projections. The Mid-cycle budget process allows for the finance and line departments to evaluate budgeted assumptions and recommend budget amendments based on updated revenue and expenditure trends, known factors such as cost increases to services, supplies and wages, and adjusted revenue estimates provided by one of two state-wide sales and property tax consultants, for example.
The budget review process for FY 2024-25 resulted in no proposed budget amendments, a budget amendment of $593,508 in revenues and expenditures is proposed for FY 2025-26.
General Fund: FY 2025-26 revenues will be increased by $280,507 based on refined budget estimates and previously unbudgeted contract revenue. Expenditures will increase by $171,749 due to increases in contract costs and telephone/internet services. In this proposed amendment, revenues exceed expenditures, and the use of reserves or unassigned fund balance is not necessary.
Table A summarizes the proposed FY 2025-26 General Fund budget amendment:
Table A:
|
DESCRIPTION |
FUND |
Expenditures |
Revenue |
Variance |
|
CCC Animal Services |
100-1110-43600 |
$44,955 |
|
|
|
County Library services & IT Expenses |
100-1110-44050 |
$21,794 |
|
|
|
Community Services Revenue Decrease: CORRECTION |
100-5210-34700 |
|
($140,000) |
|
|
Community Services Revenue Increase: CORRECTION |
100-5110-34700 |
|
$140,000 |
|
|
PW Engineering Professional Services |
100-3310-43600 |
$30,000 |
|
|
|
Matching Funds per WCCUSD agreement |
100-5110-39906 |
|
$121,000 |
|
|
Telephone/Internet Services |
100-1430-42001 |
$75,000 |
|
|
|
Kensington Services |
100-1510-34101 |
|
$34,380 |
|
|
User Fee Increase |
212-0000-39999 |
|
$85,127 |
|
|
Sales Tax (Bradley Burns) non-Measure K & S |
100-0000-31300 |
|
$40,000 |
|
|
General Fund Total: |
|
$171,749 |
$280,507 |
$108,758 |
Special Revenue Funds: FY 2025-26 revenues will be increased by $313,001 based on refined budget estimates and revised contract revenue for solid waste services. Expenditures will increase by $421,759 due to increases in contract costs, and increased costs for the Lighting and Landscape District, streets maintenance and Contra Costa Fire Contract. In this proposed amendment, expenditures exceed revenues and the excess will be covered by a transfer from the General Fund of $108,758, allocated to specific special revenue funds as outlined in Table B below.
Table B summarizes the proposed FY 2025-26 Special Revenue Fund budget amendment:
Table B:
|
Description |
Fund |
Expenditures |
Revenue |
Variance |
|
GAS TAX (Street Maintenance) |
200-3710-41001 |
$45,423 |
|
|
|
GAS TAX (Street Maintenance) |
200-3710-43600 |
$100,000 |
|
|
|
CONFIRE SERVICE CONTRACT |
201-1110-44050 |
$128,913 |
|
|
|
ROAD MAINTENANCE & REHAB |
221-0000-33500 |
|
$100,000 |
|
|
Landscape and Lighting Assessment District (LLAD) |
237-3610-41001 |
$45,423 |
|
|
|
NEW Solid Waste Franchise Fee (Republic Contract) |
256-3510-35500 |
|
$115,000 |
|
|
Neighbor Champions Program |
256-3510-43500 |
$32,000 |
|
|
|
NEW Civic Spark Fellow |
256-3510-43600 |
$35,000 |
|
|
|
SB 1383 Mulch/Compost Procurement |
256-3510-43600 |
$35,000 |
|
|
|
Reimbursement for Franchise Agreement |
256-3510-35500 |
|
$150,000 |
|
|
CORRECTION to Stormwater Utility Assessment (SUA) |
255-3510-35500 |
|
($140,000) |
|
|
Measure K HdL Increase (Sales Tax) |
100-0000-31301 |
|
$30,000 |
|
|
Measure S HdL Increase (Sales Tax) |
100-0000-31304 |
|
$58,001 |
|
|
Special Revenue Fund Total: |
|
$421,759 |
$313,001 |
($108,758) |
In summary, the proposed budget amendment is balanced between revenues and expenditures. Since the General Fund is funded by unrestricted revenues, such as taxes and fees, it is a central funding source for government activities that do not have an assigned funding source. Special Revenue Funds are funded by specific sources for specific uses and are restricted. This includes grants, specifically dedicated taxes for certain uses such as Gas Tax. Under Generally Accepted Accounting Principles (GAAP) a subsidy by way of a transfer out from the General Fund and a transfer into the Special Revenue Funds is permitted.
FISCAL IMPACT
The attached resolution will amend the FY 2025-26 Adopted Budget and increase operating appropriations. This budget amendment will be funded by revenue increases identified through the Mid-cycle budget review process.
ATTACHMENTS
Att: A - Resolution 2025-### FY 2025.26 Budget Amendment