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Millbrae council adopts FY 2025-26 midyear budget adjustments; finance staff flag vehicle-license-fee uncertainty
Summary
Council unanimously adopted midyear budget amendments that incorporate grant reimbursements and project funding, while staff warned an unresolved state-level vehicle-license-fee (VLF) allocation issue could lower expected revenue; council approved the adjustments 5-0.
The Millbrae City Council on March 24 approved midyear adjustments to the city's FY 2025-26 budget after a presentation from Finance Director Mike Sun.
Sun reported the general fund revenue picture had strengthened in several areas: local sales-tax receipts were tracking above the adopted estimate (the presentation adjusted the sales-tax forecast upward), the city received a $323,000 grant for the Millbrae Transit Center micromobility hub, and the city received approximately $113,000 in reimbursements for winter-storm costs. The finance director also said the city received a newly reported $200,000 billboard-revenue payment under an existing revenue-sharing agreement.
On the expenditure side, Sun proposed adjustments to reflect negotiated increases for fire services and additional public-works expenditures tied to ongoing projects. He said some capital and storm-drain projects require additional transfers from the general fund. After discussion, the council adopted the amendments and a resolution amending the FY 2025-26 budget by a 5-0 vote.
Sun also warned the council about a state timing and allocation issue tied to vehicle-license-fee (VLF) distributions. He said that last year the state reduced Millbrae's VLF allocation by about $514,000 and that the full VLF amount available to Millbrae is approximately $1.6 million; he described ongoing coordination with county officials and state representatives to seek full payment but noted the city may need to plan for a possible shortfall.
The presentation included a list of completed capital projects (street resurfacing, storm-drain inlets, EV-charger installations and micromobility hub work); staff said several projects were grant-funded and that additional design and grant-seeking work is underway for water-tank lining and other water-system needs. The council voted to adopt the midyear report and the related budget resolution.
Next steps: staff will continue to monitor county and state VLF allocations, pursue grant opportunities for water infrastructure and return to council with implementation steps for capital projects.
