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Pleasanton accepts unaudited FY2025 year‑end report and approves CIP carryforwards and budget amendments
Summary
City accepted unaudited FY2025 results showing a general fund reserve of about $31 million and recommended budget amendments including recognition of a $12.8 million developer capital contribution tied to Costco; council approved CIP carryforwards totaling about $63.8 million and instructed staff to return in February with midyear updates and pension strategies.
Pleasanton City Council accepted the city’s unaudited FY2025 year‑end operating report and approved recommended budget amendments and Capital Improvement Program (CIP) carryforwards at the Nov. 18 meeting.
Finance staff told council that general fund revenues and expenditures were close to forecast despite a cooler real‑estate market that reduced property tax; higher sales and business‑license taxes (partly tied to new commercial activity such as Costco) partially offset the shortfall. The staff report recorded $12.8 million in developer‑funded transportation contributions associated with the Costco project (revenues and corresponding capital expenditures were recognized; a related long‑term loan payable was also recorded and will be paid back over time from sales tax receipts). Staff emphasized that many large development fees are one‑time in nature and should be used for one‑time projects, capital or reserve strengthening rather than ongoing operating costs.
The city’s unrestricted general fund reserve closed the year around $31 million, meeting the council’s 20% reserve policy target. Staff recommended and council approved CIP carryforwards of approximately $63.8 million (about $60 million of those funds are active projects in design or under construction) and multiple budget amendments across funds to avoid showing deficits in the annual comprehensive financial report.
Council discussed options for allocating one‑time surpluses. Staff proposed transferring a portion to the capital reserve (sometimes called the "rainy‑day" fund). Some council members asked staff to evaluate using part of the one‑time funds to reduce a planned withdrawal from the City’s 115 pension trust as part of broader pension‑strategy work; staff agreed to return in February with an updated forecast and additional options. The council voted unanimously to accept the year‑end report and approve the recommended amendments and carryforwards.
