PREPARED BY: ARTURO CASTILLO DATE OF MEETING: 07/06/2026
SUBJECT:
TITLE
CONSIDER RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO APPROVING FY 2025-26 CARRY FORWARD OF $472,879 OF UNSPENT FY 2025-26 INFORMATION TECHNOLOGY PROJECT PLAN APPROPRIATIONS (RESOLUTION 2026-013) TO FY 2026-27 AS COMMITTED FUND BALANCE FOR THE CONTINUATION OF THE APEX TECHNOLOGY MANAGEMENT, LLC, INFORMATION TECHNOLOGY REMEDIATION PROJECTS
CEQA: This proposed action is not a project as defined by CEQA.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution.
Body
Compliance statements
Strengthen Existing and New Technology Programs, Public Facility/Infrastructure Projects, and Future Workplace Development Programs/Services to Enhance SPPD Crime-Reduction Goals, Community Policing, Mental Health, and Training Programs is an adopted policy item under the FY 2025-27 City Council Priority Workplan, adopted April 7, 2025.
BACKGROUND
On February 2, 2026, the City Council adopted Resolution 2026-013, authorizing a one-time funding allocation of $1,041,124 from the FY 2025-26 General Fund Designated Reserve (GFDR) Fund 110 Operating Reserve to implement the multi-year Information Technology (IT) Project Plan developed from Apex Technology Management, LLC’s 2025 Technology Assessment. The appropriation was reallocated to the Multi-Department General Fund Operating Fund 100 to cover all costs of the three-year plan, including professional services, software licensing, and hardware equipment, spanning FY 2025-26 through FY 2027-28.
Resolution 2026-013 also authorized a three (3) year Professional Services Agreement with Apex Technology Management, LLC, not to exceed $431,165, effective February 3, 2026, through June 30, 2028, in account 100-1430-43600. On May 4, 2026, the City Council adopted Resolution 2026-065, authorizing a one-year Microsoft 365 Government G5 GCC licensing agreement with Apex Technology Management, LLC, not to exceed $137,080 in account 100-1430-42005. The IT Apex Project Plan is a multi-year program funded by a single one-time appropriation, the portions that remain unspent and unencumbered as of June 30, 2026, must be carried forward into FY 2026-27 to remain available for the continuation of the plan. This action will be reflected as part of the City’s FY 2025-26 year-end closing bookkeeping entries.
FY 2025-26 Year-End Status of the IT Project Plan Appropriation:
As of June 30, 2026, the FY 2025-26 IT Project Plan appropriation is committed against the two Council-authorized agreements with Apex Technology Management, LLC. The unspent and unencumbered balance available to carry forward is the original appropriation less the executed Professional Services Agreement and the Microsoft 365 G5 GCC licensing agreement: $1,041,124 − $431,165 − $137,080 = $472,879.
FUND BALANCE CLASSIFICATION (GASB 54)
Consistent with Governmental Accounting Standards Board (GASB) Statement No. 54, the $472,879 carryforward is most appropriately reported as committed fund balance. The original appropriation was established by formal action of the City Council (Resolution 2026-013), the highest level of decision-making authority, and may be modified or rescinded only by an equivalent formal action of the Council.
Carrying the unspent balance forward as committed fund balance preserves the Council’s expressed intent that these funds remain dedicated to the IT Project Plan and are not available for other purposes. The City’s adopted fund balance policy governs the final classification between committed and assigned fund balance.
FISCAL IMPACT
This action carries forward $472,879 of unspent unencumbered FY 2025-26 appropriation into FY 2026-27 within the Multi-Department General Fund Operating Fund account 100-1430-43600, classified as committed fund balance. No new appropriation from the General Fund or the GFDR Fund 110 Operating Reserve is requested, and the action does not increase the total authorized cost of the IT Project Plan. The carry forward ensures previously authorized funding remains available to complete the multi-year remediation projects through FY 2027-28.
The fiscal impact is outlined in the table below:
|
ACTION |
FROM: FY 2025-26 |
TO: FY 2026-27 |
Amount |
|
Carry forward unspent FY 2025-26 IT Apex Project Plan appropriation (committed fund balance) |
100-1430-43600 |
100-1430-43600 |
$472,879 |
|
TOTAL |
$472,879 |
ATTACHMENTS:
Att A. Resolution