AGENDA TITLE:
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Fiscal Year 2025/26 First Quarter Budget Update (IS - BUD)
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MEETING DATE:
December 17, 2025
PREPARED BY:
Jennelle Baker, Budget Manager
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RECOMMENDED ACTION:
This is an informational report; no action is requested on this item.
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BACKGROUND INFORMATION:
This informational item presents unaudited revenue and expenditure results through the first period of FY 2025/26. This report presents City-wide Funds revenue and expenditure results through the first three periods of FY 2025/26 (July-Sept). In addition, the report highlights General Fund revenue and expenditure results in comparison to estimates used in the development of the current FY 2025/26 budget.
Through the first quarter of FY 2025/26, General Fund (GF) expenditures and encumbrances were $42.4 million, or 44.5% of the adjusted budget of $95.3 million. Of the adjusted budget, $5.5 million was re-appropriated from FY 2024/25 for encumbrances and allocations for the Assistance to Firefighters Grant, and the remaining American Rescue Plan Act (ARPA) funding was assigned to the operation and planning of the Access Center. Both of these allocations have revenue offset, and the projects or activities were not completed as of June 30, 2025.
The first quarter reporting does not include any assumptions for Memorandum of Understanding (MOU) updates or ongoing negotiations, and is solely based on the original budget and the adjustments mentioned above. As the remaining MOU negotiations unfold, expenditures will continue to be monitored and projections updated to assess the impact on the General Fund. The results of this analysis and potential budget adjustments will be discussed during the mid-year budget review.
1a Only received $2,407 out of the projected $529,370 AFG Grant Reimbursement and No Strike Team
Revenue YTD
1b Rent payment from Peaker plant will be received in March 2026 ($2,800,000)
1c Full Cost of Services transfer ($10,845,150) made in the first quarter
1d Property tax payments from the County received in January and June of the fiscal year
1e Sales tax revenue for July, August, and September
1f Vehicle License Fee payments from the County received in January and June of the fiscal year
1g EU PILOT transfer was received at the beginning of the fiscal year
1h CFD payments from the County is received in January and June of the fiscal year
1i Sales tax revenue for July, August, and September
* Expenses in all departments include the once-per-year PERS Unfunded Accrued Liability (UAL) payment that is due in July. The General Fund's portion of the UAL payment for FY 2025/26 was $10,928,750 or 12% of the General Fund's overall budget. In addition, all Personal Liability, Property Damage, and Workers' Compensation distributions were transferred to the Self-Insurance fund in the first quarter. These expenses directly increase the YTD budget percentage for all departments.
2a Salary and benefits costs may need to be adjusted at mid-year due to additional personnel costs and payouts
2b Debt Service Payment, and Vehicle and Equipment transfers were made in the first quarter in the amount of $1,489,710
2c Vehicle and Equipment transfers were made in the first quarter in the amount of $830,640
2d Operational transfers to Parks, Recreation and Cultural Services and Library, GF Debt Service, Streets Maintenance of Effort, IT Refresh GF portion, and General Fund Capital were made in the first quarter and make up the total expense YTD.
2e Transfer to the General Fund was made in the first quarter, offsetting Revenue that will be realized in January and June of this fiscal year
3a Operational transfer from GF to the Library was made in the first quarter
3b Operational transfer from GF to PRCS was made in the first quarter
3c Maintenance of Effort transfer from GF to Streets was made in the first quarter in the amount of $1,148,950
3d Revenue received from the County at the end of the fiscal year
3e Reimbursement-based revenue can take a quarter to realize revenue after expense activity is reported
3f Transfer from GF to equipment and vehicle replacement was made in the first quarter, and a donation from the Lodi Fire Foundation for a Cardiac Monitor in the amount of $65,000
3g Transfer from GF to Capital was made in the first quarter, and additional revenue for the IMF funds will be realized from fees
3h Transfer from GF to GF Debt was made in the first quarter
3i Revenue for Transit is reimbursed and can take a quarter or longer to realize revenue after expense activity is reported
3j Revenue is a transfer from departments that utilize Fleet Services, as of September full cost of services had not been transferred
3k Transfer from all departments into the Risk fund was completed in the first quarter
* Increases in the revised budget due to the Capital project budget roll in the first quarter
** Expenses in all departments include the once-per-year PERS Unfunded Accrued Liability (UAL) payment that is due in July. All funds portion of the UAL payment for FY 2025/26 was $15,068,410. In addition, all Personal Liability, Property Damage, and Workers' Compensation distributions were transferred to the Self-Insurance fund in the first quarter. These expenses directly increase the YTD expense percentage for all departments.
4a Full transfer of Cost of Services made in the first quarter in the amount of $230,930
4b Full transfer of Cost of Services made in the first quarter in the amount of $1,499,670
4c GF Debt Service payment of principal and interest made in the first quarter, interest-only payment schedule in Q3
4d CJPRMA General Liability premium paid in the Q1
STRATEGIC VISION:
3A. Fiscal Health: Promote City's transparency & fiscal fluency.
FISCAL IMPACT:
Not Applicable.
FUNDING AVAILABLE:
Not Applicable.