Council accepts FY26 first-quarter financial update and approves modest budget adjustments

Murrieta City Council on Dec. 2 accepted the city’s FY 2026 first-quarter financial status report and approved proposed budget adjustments, the finance director said, approving an approximately $743,000 increase in expenditures and creation of a vehicle replacement fund.

Director of Finance Javier Carcamo told the council the city had collected just over $22 million in revenues for the first quarter (July 1–Sept. 30), driven largely by development impact fees and federal/state grants, and had expended about $38.7 million. He cited accounting presentation differences that make CIP spending appear over budget but said the budget is on track overall. Carcamo described a lump-sum transfer of roughly $7 million to establish a vehicle replacement fund to begin earning investment income for future acquisitions.

Finance Manager Jennifer Terry presented ending fund-balance estimates (unassigned general fund balance about $32.1 million; Measure T $16.2 million; combined unassigned balance ~$48.9 million) and a net addition of two full-time equivalents to the authorized positions schedule. Council members asked clarifying questions about sales-tax trends, transfers and the reduction in unassigned balances; staff explained the planned use of reserves for economic contingency and library funding.

Councilmember Holiday moved to accept staff recommendations; the motion was seconded and carried unanimously, 5-0.