City finance director reports first‑quarter budget status: revenues near budget, small deficit projected

Kevin Biersack, the city’s financial services director, presented the fiscal year 2025–26 first quarter results (July–September) for the general fund and Measure W. He said taxes represented roughly 79% of first‑quarter revenues and that seasonality affects quarter‑to‑quarter comparisons. At the time of the report the general fund had reached about 91% of the budgeted revenue for the year‑to‑date period and 88% of budgeted expenditures, producing a smaller first‑quarter deficit ($1.2 million) than earlier projections.

Biersack highlighted key revenue and expenditure drivers: sales tax softness in the summer, a relatively stable transaction and use tax, increases in services and fees, and ongoing FEMA reimbursements (one FEMA payment of about $2.8 million was under processing). He told council that Measure W receipts were slightly below target but that third‑party audits and vendor catch‑up activity were narrowing the gap. Staff committed to ongoing vendor outreach and coordination with HDL (the city’s tax audit vendor) and the California Department of Tax and Fee Administration for compliance.

Council members asked questions about timing of vendor invoicing, Measure W reconciliations, and how early spending on licenses and legal fees affected departmental expenditure timing. Staff noted some large first‑quarter expenses (license renewals, retiree payouts, legal fees) and said they would continue to monitor timing and bring any recommended adjustments back to council. The item was received and filed as an informational update; no vote was required.