Moraga Town audit and finance committee receives FY2025–26 midyear budget report; no adjustments recommended

Katie Bruner, Moraga Town’s Administrative Services Director, told the Audit and Finance Committee on March 4 that staff had "no recommended budget adjustments at this time" after presenting the fiscal year 2025–26 midyear budget update.

The presentation focused on general fund activity through Dec. 31, 2025. Bruner said overall general fund revenues were about 30%–32% of budget as of that date and noted property tax is the town’s largest general fund revenue source, accounting for about half of general fund receipts. "Sales tax revenues are received about two months after they're collected," she said, explaining why the report shows a lagged sales tax figure (the staff report showed $420,000 in sales tax receipts through October). Bruner also reported franchise fees at roughly 24%–25% of budget and department revenues at about 39% of budget.

Bruner explained that general fund expenditures were running near 55% of budget through December and attributed that to timing differences and a few one‑time costs. She said the town recorded insurance premiums in Administrative Services under a new chart of accounts and that a nearly $1,000,000 CalPERS payment due in July increased the general government line for the year. "That year this year, that was almost 1000000 dollars that was due to CalPERS in July," she said.

The report showed the town's general fund reserves were $6,800,000 as of June 30, 2025, meeting the town’s 50% reserve policy. Bruner also highlighted about $170,000 in market gains in the pension trust year to date and said the pension trust balance was roughly $2.2 million as of June 30.

Committee members pressed staff on timing and risks. A member asked why some department revenues lag while parks and recreation were ahead; Bruner said some fees (for example, fingerprinting) are sporadic and that an ERP/chart‑of‑accounts conversion and manual staff time entries have delayed posting of some revenue. Mayor Hillis asked what could change the picture before year‑end; Bruner pointed to sales tax variability and the timing of development projects and permits as primary risks. When Mayor Hillis raised a possible Grocery Outlet opening, Bruner said the town's projections had accounted for some new retailers and staff would adjust projections if openings did not occur.

On implementation of the town’s new financial system, Bruner said the general ledger was live and processing accounts payable and that payroll implementation was the next major task. "I think, technically, we're done with our go live in April," she said, adding that training and reporting cleanup will continue after go‑live.

Bruner recommended the committee receive the midyear report; staff said they would take the report to the Town Council for acceptance and are available to answer follow‑up questions. The committee set a plan to return in May to review next fiscal year budget items as part of the town’s two‑year budget cycle. The meeting adjourned by voice vote.

Next steps: staff will forward the midyear budget report to the Town Council for formal acceptance; the committee will reconvene in May for budget review.