REPORT TO COUNCIL
SUBJECT
Title
Action on a Proposed Reallocation of the General Fund Reserve for Future Uses, Elimination of Senior Center Membership Fees for Residents, Issuance of Credits for Senior Memberships Paid Between July 1, 2026 and October 20, 2026, and Approval of Related Budget Amendments Including an Allocation of Funds for Senior Center Facility Repairs
Report
BACKGROUND
As reported in the Monthly Financial Reports during FY 2025/26, General Fund revenues tracked above budgeted levels and expenditures ended the year below budget. A portion of this higher revenue and expenditure savings ($19.6 million) was assumed and programmed in the FY 2026/27 Adopted Budget. These funds allowed for additional investments, including a transfer to the new Infrastructure Replacement Capital Fund and funding for the Pension Trust contribution, as well as the carryover of unspent funds from FY 2025/26 to FY 2026/27 to complete projects. Additionally, as part of the April Monthly Financial Report, approved by the City Council on June 23, 2026, an additional $20.0 million was set aside to establish a new Reserve for Future Uses in the General Fund.
At the June 23, 2026 City Council meeting, staff brought forward Report to Council 26-663 (Attachment 1) to discuss possible allocations of the additional funds set aside in the Reserve for Future Uses, including the following:
Transfer to the Infrastructure Replacement Capital Fund: Increase the transfer by $7.0 million (from $10.4 million to $17.4 million). This would bring the Infrastructure Replacement Capital Fund reserve to 5% of General Fund expenditures in FY 2026/27.
Increase the Capital Projects Reserve: Increase the Capital Projects Reserve (CPR) by $5.4 million (from $12.5 million to $17.9 million). These funds would be available to address capital project needs throughout the City.
Transfer to the Convention Center Capital Fund: Establish a transfer of $7.6 million to the Convention Center Capital Fund ...
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