REPORT TO COUNCIL
SUBJECT
Title
Discussion on the Allocation of Additional Funds in the General Fund Estimated for FY 2025/26, including Convention Center Capital Projects
Report
BACKGROUND
As reported in the Monthly Financial Reports during FY 2025/26, General Fund revenues are tracking above the budgeted levels and expenditures are expected to end the year below budget. A portion of this higher revenue and expenditure savings ($17.0 million) was assumed and programmed in the FY 2026/27 Adopted Budget. This included $13.9 million in the Proposed Budget that allowed additional investments, such as the transfer to the new Infrastructure Replacement Capital fund and funding for the Pension Trust contribution. As part of the FY 2026/27 budget adoption, an additional $3.1 million in fund balance was assumed, primarily from the carryover of unspent funds from FY 2025/26 to FY 2026/27.
Additional fund balance above the $17.0 million already programmed is expected by year-end. The April Monthly Financial Report (RTC 26-511) includes budget actions to set aside an additional $20.0 million generated from higher estimated revenues into a Reserve for Future Uses. Staff is requesting City Council feedback on the use of these funds.
At the public hearing on the adoption of the FY 2026/27 and FY 2027/28 Biennial Capital Budget on June 9, 2026, there was discussion and public feedback about the Senior Center membership fees and operations at the Senior Center. This report provides initial information to address the comments.
DISCUSSION
Potential Allocation of Additional Fund Balance
There is $20 million available for potential allocation by the City Council. These additional funds are considered one-time in nature as the higher FY 2025/26 collection levels have been factored into the FY 2026/27 revenue estimates.
Following are recommended expenditure categories for consideration:
* Transfer to the Infrastructure Replacement Capital Fund: Increase the transfer by $...
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