HomeMy WebLinkAboutFin FY2025-26 First Quarter Budget Update____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: December 1, 2025
Disposition: Accepted Budget Update
Agenda Item No: 5.c
Meeting Date: November 17, 2025
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Finance
Prepared by: Paul Navazio, Finance Director City Manager Approval: ______________
TOPIC: FY2025-26 FIRST QUARTER BUDGET UPDATE
SUBJECT: FY2025-26 FIRST QUARTER BUDGET UPDATE: REVENUE AND EXPENDITURE
RESULTS FOR THE QUARTER ENDING SEPTEMBER 30, 2025.
RECOMMENDATION:
1)Accept the FY 2025-26 First Quarter Budget Update, presenting revenue and expenditure results
through the first quarter of the fiscal year 2025-26 (September 30, 2025). (Attachment A).
BACKGROUND:
This agenda item presents the first quarter budget update report summarizing revenue and expenditure
results through the first quarter of fiscal year 2025-26. This is an informational report providing periodic
updates of financial results relative to the approved budget.
Attachment A provides a summary of FY2025-26 first quarter revenue and expenditure results, organized
as follows:
Table 1 – All Fund Revenues, by Fund Type Table 4 – General Fund Revenues
Table 2 – All Fund Expenditures by Fund Type Table 5 – General Fund Expenditures by Category
Table 3 – All Fund Expenditures by Dept. Table 6 – General Fund Expenditures by Dept.
Table 7 – All Fund revenues, by Fund
Table 8 – All Fund Expenditures by Fund
A Mid-Year (2nd Quarter) Budget Update is planned for February 2026 to include revenue and expenditure
results through the first half of the fiscal year (December 31, 2025) as well as updated revenue and
expenditure projections through the remainder of the fiscal year. The Mid-Year Budget Update serves to
inform mid-year budget adjustments, as necessary, as well as inform the development of the City’s
FY2026-27 budget.
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A third-quarter budget update is planned for May 2026, to coincide with the City Council’s consideration
and review of the City’s proposed FY2026-27 budget.
The First Quarter Budget Update report was previewed with the Finance Sub-committee at their meeting
on November 4th.
DISCUSSION
Highlights of the FY 2025-26 Q1 results (Summarized in Attachment A):
• All Funds revenues through the first quarter of FY 2025-26 were $26.09 million, or 13.7% of the
amended revenue budget of $189.75 million (see Table 7 for revenue detail, by Fund).
• All Funds expenditures through the first quarter of FY 2025-26 totaled $51.68 million. This,
combined with an additional $17.41 million in encumbrances related to executed contracts and
purchase orders, represents a total of 23.2% of the amended expenditure budget of $223.11
million (see Table 8 for expenditure detail, by Fund).
o The amended FY 2025-26 budget of $223.11 million reflects budget amendments
totaling $30.82 million following the adoption of the budget. These include carryover of
encumbered FY 2024-25 appropriations ($15.94 million), carryover of unencumbered
FY2024-25 appropriations ($14.26 million), and specific FY 2025-26 supplemental
budget appropriations authorized by the City Council since the start of the fiscal year
($614,570).
• General Fund revenues through the first quarter of FY 2025-26 totaled $8.19 million, or 7.6% of
the adjusted budget of $107.55 million.
o General Fund revenues through the first quarter reflect the fact that the first Property Tax
payments (from the County) and Sales Tax payments (from the State) are not received
until the second quarter of the fiscal year.
o Most other General Fund revenues are initially tracking at, or above, the expected
budget through the first quarter of the fiscal year.
• General Fund expenditures through the first quarter of FY 2025-26 were at $33.34 million.
Combined with encumbrances of $1.54 million, this represents a combined commitment of
30.0% of the adjusted budget of $116.15 million.
o Through the first quarter, results across most expenditure categories are tracking within
budget, including personnel costs, which have historically trended below budget.
o Departmental expenditures appear to be within budget, accounting for selected
professional services contracts that reflect as encumbered appropriations as of the end
of the first quarter.
• The following table summarizes activity for the FY 2025-26 Capital Improvement Plan (CIP)
budget through the first quarter of the fiscal year:
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
FY2025-26 Capital Improvement Plan
Expenditures By Fund
*The difference between the FY25-26 CIP budget presented to the Council on June 2nd and this table is an additional $50,000 was budgeted in
the operating expense account for Measure A. In the financial system the $50,000 was budgeted in the Capital division. *
• Through the first quarter of the fiscal year, capital project expenditure was $1.37 million. When
combined with encumbrances (or executed contracts) of $6.49 million, commitments against the
amended budget totaled $7.86 million, or 24.6% of the amended budget of $31.97 million.
• The amended capital budget of $31.97 million reflects the original adopted budget of $16.01
million, as well as carry-over appropriations of $15.97 million (representing appropriations
approved in the prior fiscal year that are required to support ongoing projects).
FISCAL IMPACT:
This agenda item provides financial results through the first quarter of the fiscal year as measured against
the approved FY 2025-26 adjusted budget, which provides for authorized expenditure appropriations of
$223.11 million supported by budgeted revenues of $189.75 million, as well as the use of available fund
balances, across all funds. The amended FY 2025-26 General Fund budget provides for expenditure
appropriations of $116.15 million supported by projected revenues of $107.55 million, along with available
fund balance.
RECOMMENDED ACTION:
Staff recommends that the City Council:
1) Accept the FY 2025-26 First Quarter Budget Update, presenting revenue and expenditure results
through the first quarter of the fiscal year 2025-26 (September 30, 2025). (Attachment A).
ATTACHMENTS:
Attachment A - FY 2025-26 Q1 Budget Update - summary results through 9/30/25
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
ATTACHMENT A
FY 2025-26 Q1 Budget Update
Table 1
FY 2025-26 All Fund Revenues
by Fund Type
• All Funds revenues through the first quarter of FY 2025-26 were $26.09 million or 13.7% of the
amended revenue budget of $195.56 million (see Attachment B for revenue detail, by Fund).
Table 2
FY 2025-26 All Fund Expenditures
by Fund Type
• All Funds expenditures through the first quarter of FY 2025-26 totaled $51.68 million. This,
combined with an additional $17.41 million in encumbrances related to executed contracts and
purchase orders, represents a total of 23.2% of the amended expenditure budget of $223.11
million (see Attachment B for expenditure detail by Fund).
• The amended FY 2025-26 budget of $223.11 million reflects budget amendments totaling
$30.82 million processed following the adoption of the budget. These include:
o Carryover of encumbered FY 2024-25 appropriations totaling $15.94 million authorized
via the budget Resolution No. 15422 approved by the City Council on June 2, 2025;
o Carryover of unencumbered FY2024-25 appropriations totaling $14.26 million authorized
by Resolution No. 15456 approved on September 2, 2025; and
o Specific FY 2025-26 supplemental budget appropriations authorized by the City Council
since the start of the fiscal year ($614,570), including:
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
On-call Planning and Environmental Consulting Services $500,000
UKG Contract (Human Resources) 66,500
Pickleweed Library Renovation project 48,070
• All Funds expenditures through the first quarter of FY 2025-26 totaled $51.68 million. This,
combined with an additional $17.41 million in encumbrances related to executed contracts,
represents a total of 23.2% of the amended expenditure budget of $223.12 million.
Table 3
FY 2025-26 All Fund Expenditures
by Department
• Most operating departments are tracking within budget through the first three months of the
fiscal year. Year-to-date commitments exceeding 25% of budget through the first quarter of
the fiscal year are generally attributable to a) annual payments due at the start of the fiscal
year, b) debt service payments, and c) encumbered contracts for professional services and
construction contracts. Notable examples include:
o City Attorney – encumbrance of annual contract for outside legal services
o City Manager’s Office – encumbrance of Encampment Resolution Fund (ERF- 3) grant
funds;
o Finance Department – payment of City’s annual Marin Emergency Radio Agency
contribution and Pt. San Pedro Assessment District debt service payments;
o Human Resources – encumbrances for contract services related to UKG software
implantation, Worker’s Compensation benefits administration;
o Community and Economic Development – encumbrances related to Affordable
Housing grant funds (awarded and pending disbursements)
o Library and Recreation – encumbrances related to Pickleweed Library Branch
Renovation project
o Non-Departmental – expenditures reflect $6.6 million in transfers to other operating
and capital funds (as approve through the FY 2025-26 adopted budget), as well as
Measure E debt service payments and charges from internals service funds.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6
• Note – the FY 2025-26 amended budget also reflects a number of administrative budget
adjustments transferring appropriations between operating departments that were required as
part of the City’s implementation of its new ERP financial system. Specifically, several
programs and divisions transferred ‘home departments” between the development of the
FY2025-26 budget in the former EDEN financial system, and the new Tyler/ERP Financial
System. Examples include:
o Risk Management (including Liability Fund and Workers’ Compensation Fund
administration) transferring from the City Manager’s Office to Human Resources.
Table 4
FY 2025-26 General Fund Revenues
• General Fund revenues though the first quarter of FY 2025-26 totaled $8.19 million, or 7.6% of
the adjusted budget of $107.55 million.
o General Fund revenues through the first quarter reflect the fact that the first Property Tax
payments (from the County) and Sales Tax payments (from the State) are not received
until the second quarter of the fiscal year.
o Most other General Fund revenues are initially tracking at, or above, the expected
budget through the first quarter of the fiscal year.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 7
Table 5
FY 2025-26 General Fund Expenditures
By Category
• General Fund expenditures through the first quarter of FY 2025-26 stand at $33.34 million.
Combined with encumbrances of $1.54 million, this represents a combined commitment of
30.0% of the adjusted budget of $116.15 million.
o Through the first quarter, results across most expenditure categories are tracking within
budget, including personnel costs which have historically trended below budget.
o Departmental expenditures appear to be within budget, accounting for selected
professional services contracts that reflect as encumbered appropriations as of the end
of the first quarter.
Table 6
FY 2025-26 General Fund Expenditures
By Department
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 8
Table 7
FY 2025-26 Revenues
By Fund
Fund Adopted Budget FY26 Adjusted Budget FY26 Actual Thru Sep 2025 % Budget
General Fund
101 General Fund 106,390,855.00 106,890,855.00 8,010,462.67 7.5%
102 General Plan 659,391.00 659,391.00 180,679.74 27.4%
General Fund Total 107,050,246.00 107,550,246.00 8,191,142.41 7.6%
Special Revenue Funds - - -
203 Abandoned Vehicle Abatement 190,000.00 190,000.00 45,768.31 24.1%
205 Stormwater 1,539,010.00 1,539,010.00 81,713.69 5.3%
206 Gas Tax 10,946,300.00 10,946,300.00 2,295,970.36 21.0%
207 Development Services - - 775.31 0.0%
208 Childcare 3,339,986.00 3,339,986.00 766,252.55 22.9%
210 Emergency Medical Services 9,599,809.00 9,599,809.00 952,217.31 9.9%
213 Library Endowment 17,709.00 17,709.00 2,019.27 11.4%
214 Library Fund 104,376.00 104,376.00 415,294.93 397.9%
215 Library Special Assessment 1,259,143.00 1,259,143.00 2,124.65 0.2%
216 Measure G - Cannabis 142,199.00 142,199.00 25,551.80 18.0%
217 State Lands 54,819.00 54,819.00 2,149.40 3.9%
222 Recreation 4,826,578.00 4,826,578.00 1,223,628.81 24.3%
230 Police Youth Services 15,000.00 15,000.00 - 0.0%
234 Pt. San Pedro-Maintenance 127,037.00 127,037.00 919.46 0.7%
235 Baypoint Lagoon A.D.32,693.00 32,693.00 809.22 2.5%
236 Loch Lomond CFD #10 57,887.00 57,887.00 3,028.93 5.2%
237 Loch Lomond-Marina CFD #2 332,841.00 332,841.00 4,309.17 1.3%
240 Parkland Dedication 11,390.00 11,390.00 1,291.40 11.3%
241 Measure A Open Space 609,392.00 609,392.00 4,014.89 0.7%
242 Wildfire Prevention 3,945,872.00 3,945,872.00 125,046.19 3.2%
243 Affordable Housing In-Lieu-SR 1,070,529.00 1,070,529.00 8,211.37 0.8%
244 Successor RDA-L & M Housing 3,266.00 3,266.00 555.51 17.0%
245 Housing & Parking In Lieu 10,849.00 10,849.00 1,242.36 11.5%
246 Traffic Mitigation 390,619.00 390,619.00 113,954.96 29.2%
260 Childcare Preschool Grant 597,962.00 597,962.00 308,851.04 51.7%
281 Grant Fund - Safety 300,000.00 300,000.00 - 0.0%
283 Grants Fund - Other 3,218,897.00 3,218,897.00 17,817.53 0.6%
Special Revenue Funds Total 42,744,163.00 42,744,163.00 6,403,518.42 14.9%
Capital Funds - - -
401 Capital Improvement 2,099,211.00 2,099,211.00 1,582,347.65 75.4%
405 Open Space 3,773.00 3,773.00 427.78 11.3%
406 Parks & Rec. Facility Mtce.4,698.00 4,698.00 1,049.03 22.3%
407 Parks Capital Improvements - - 3,300.00 0.0%
420 Essential Facilities 396,819.00 396,819.00 157,384.99 39.7%
430 Measure P Library Parcel Tax 6,320,000.00 6,320,000.00 - 0.0%
Capital Funds Total 8,824,501.00 8,824,501.00 1,744,509.45 19.8%
Enterprise Funds - - -
501 Parking Services 4,797,474.00 4,797,474.00 1,226,789.52 25.6%
Enterprise Funds Total 4,797,474.00 4,797,474.00 1,226,789.52 25.6%
Internal Service Funds - - -
611 Building Maintenance 1,208,543.00 1,208,543.00 277,698.92 23.0%
612 Technology 2,733,504.00 2,733,504.00 661,462.48 24.2%
614 Sewer Maintenance 3,773,508.00 3,773,508.00 170,367.92 4.5%
621 Vehicle Replacement 2,459,633.00 2,459,633.00 1,345,954.30 54.7%
622 Radio Replacement 462,105.00 462,105.00 112,500.00 24.3%
623 Communication Replacement 613,797.00 613,797.00 151,982.40 24.8%
624 Police Equipment Replacement 56,906.00 56,906.00 11,184.38 19.7%
625 Fire Equipment Replacement 167,985.00 167,985.00 37,127.10 22.1%
631 Liability Insurance 5,426,177.00 5,426,177.00 3,223,628.86 59.4%
632 Workers Compensation 3,397,762.00 3,397,762.00 813,736.58 23.9%
633 Dental Insurance 529,622.00 529,622.00 163,530.77 30.9%
641 Employee Benefits 734,049.00 734,049.00 174,103.44 23.7%
642 Employee Retirement 52,148.00 52,148.00 3,656.85 7.0%
643 Retiree Health Benefit (OPEB)4,221,281.00 4,221,281.00 1,372,738.21 32.5%
Internal Service Funds Total 25,837,020.00 25,837,020.00 8,519,672.21 33.0%
Grand Total 189,253,404.00 189,753,404.00 26,085,632.01 13.7%
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 9
Table 8
FY 2025-26 Expenditures
By Fund
Fund
Adopted Budget
FY26
Adjusted Budget
FY26
Actual Thru Sept
2025 Encumbrances % Budget
General Fund
101 General Fund 113,248,823 115,366,772 33,255,182 1,535,547 30.2%
102 General Plan 783,451 783,451 89,746 0 11.5%
General Fund Total 114,032,274 116,150,223 33,344,928 1,535,547 30.0%
Special Revenue Funds
203 Abandoned Vehicle Abatement 190,505 190,505 46,986 - 24.7%
205 Stormwater 1,938,992 5,377,668 535,409 2,985,691 65.5%
206 Gas Tax 10,889,204 20,571,706 875,228 3,425,583 20.9%
208 Childcare 3,516,638 3,516,638 893,685 542 25.4%
210 Emergency Medical Services 10,155,208 10,155,208 2,417,045 118,610 25.0%
213 Library Endowment - 48,070 - - 0.0%
214 Library Fund 192,392 2,188,004 10,305 390,901 18.3%
215 Library Special Assessment 1,599,341 1,916,122 533,159 111,246 33.6%
216 Measure G - Cannabis 695,373 695,373 33,782 - 4.9%
222 Recreation 5,002,005 5,002,005 1,298,657 320,696 32.4%
230 Police Youth Services 40,043 40,043 - - 0.0%
234 Pt. San Pedro-Maintenance 183,186 222,736 33,453 14,546 21.5%
235 Baypoint Lagoon A.D.34,700 34,700 - - 0.0%
236 Loch Lomond CFD #10 28,855 28,855 - - 0.0%
237 Loch Lomond-Marina CFD #2 150,030 162,568 24,139 4,157 17.4%
240 Parkland Dedication 375,000 375,000 - - 0.0%
241 Measure A Open Space 450,000 1,127,370 352,807 279,349 56.1%
242 Wildfire Prevention 3,946,919 3,961,220 640,728 1,155,082 45.3%
243 Affordable Housing In-Lieu-SR - 1,969,419 250,000 1,116,419 69.4%
244 Successor RDA-L & M Housing 85,770 85,770 - - 0.0%
246 Traffic Mitigation 400,000 476,376 - 103,899 21.8%
260 Childcare Preschool Grant 704,824 708,541 159,953 3,717 23.1%
281 Grant Fund - Safety 577,811 577,811 27,769 - 4.8%
283 Grants Fund - Other 1,810,563 5,930,216 389,696 2,494,268 48.6%
Special Revenue Funds Total 42,967,359 65,361,924 8,522,803 12,524,707 32.2%
Capital Funds
401 Capital Improvement 1,054,000 4,098,634 657,513 1,842,194 61.0%
420 Essential Facilities 880,000 884,000 - 180,237 20.4%
430 Measure P Library Parcel Tax 1,625,000 1,625,000 3,463 - 0.2%
Capital Funds Total 3,559,000 6,607,634 660,975 2,022,431 40.6%
Enterprise Funds
501 Parking Services 4,701,156 4,701,156 1,052,592 93,205 24.4%
Enterprise Funds Total 4,701,156 4,701,156 1,052,592 93,205 24.4%
Internal Service Funds
611 Building Maintenance 2,838,000 4,451,786 12,741 170,817 4.1%
612 Technology 3,489,856 4,865,761 876,122 468,066 27.6%
614 Sewer Maintenance 3,773,507 3,773,507 862,434 - 22.9%
621 Vehicle Replacement 430,000 559,656 492,918 10,682 90.0%
622 Radio Replacement 550,000 550,000 530,637 - 96.5%
623 Communication Replacement 694,540 694,540 104,290 - 15.0%
624 Police Equipment Replacement 130,000 130,000 19,377 - 14.9%
625 Fire Equipment Replacement 506,000 506,000 - - 0.0%
631 Liability Insurance 5,110,857 5,215,173 2,465,920 341,771 53.8%
632 Workers Compensation 3,680,585 3,686,423 809,194 231,646 28.2%
633 Dental Insurance 495,000 495,000 110,274 - 22.3%
641 Employee Benefits 822,752 822,752 554,035 14,037 69.0%
642 Employee Retirement 686,500 686,500 170,625 - 24.9%
643 Retiree Health Benefit (OPEB)3,660,000 3,660,000 978,626 - 26.7%
Internal Service Funds Total 26,867,597 30,097,098 7,987,194 1,237,019 30.6%
Fiduciary Funds
714 Pt. San Pedro AD 155,002 155,002 105,818 - 68.3%
715 Successor Agency-Trust Fund 12,870 42,870 5,767 - 13.5%
Fiduciary Funds Total 167,872 197,872 111,585 - 56.4%
Grand Total 192,295,258 223,115,907 51,680,077 17,412,908 31.0%