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FY 2025-26 MID-YEAR ADJUSTMENTS
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RECOMMENDATION
It is recommended that Council approve allocating $504,925 to fund a portion of the outstanding mid-year requests presented to Council on April 14, 2026.
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Summary
The General Fund balance at the end of Fiscal Year 2024-25 was $57.7 million, of which $54.7 million is assigned to the 16.7% Working Capital Reserve. This left approximately $3 million available for appropriation. Council approved $2.6 million of mid-year General Fund requests at its April 14, 2026, meeting. The remaining requests were presented and discussed with the Budget and Finance Committee on April 30, 2026. Per the meeting minutes, the Committee approved motion 2026-04-30-0302, sending a recommendation to Council approving all items, with the modification to remove the fence repair that has already been completed, change the Weston Ranch Substation to the Weston Ranch Library, and use the contingency fund to cover the balance and directing staff to work on a plan to replenish the contingency.
DISCUSSION
Background
The FY 2024-25 Q4 Year End Projection indicated an ending General Fund balance of $57,734,990, or $3,014,196 above the amount required for the 16.67% Working Capital Reserve. Departments were asked to submit mid-year requests for FY2025-26 for urgent, one-time needs. Staff reviewed the priorities identified during the February 19, 2026, City Council Planning Workshop, to guide recommendations. At the Workshop, Council members:
Identified key elements of their shared vision for the community, including:
• Being a safe and clean city,
• Economic development that results in a thriving economy, and
• The investment in young people.
Affirmed the following key areas of focus:
• Public Safety
• Economic Development
• Expand Activities for Youth
• Homelessness
• Affordable Housing
• Infrastructure
Identified the following three as the highest priorities for FY 2026-2027, noting the interconnectedness with the six key focus areas listed above:
• Public Safety
• Economic Development
• Infrastructure
Staff also considered the risks and liabilities of noncompliance with legal or other statutory mandates. Staff considered the permissible use of restricted funds to enable the completion of critical projects.
Present Situation
It is recommended that the Council allocate the remaining $504,925 to support the critical programs and activities noted on Attachment A.
Attachment A - FY2025-26 Mid-Year Request List