Council accepts third-quarter financial report showing $3.9M projected use of general fund balance

City budget staff presented the fiscal year 2025-26 third-quarter financial report on May 19, reporting the city's amended budget across all funds at $229.7 million as of March 31, 2026, up from the adopted budget mainly because of carryover appropriations and encumbrances tied to multiyear projects.

Budget manager Tony Owasi Anderson said projected expenditures have increased without offsetting revenue growth, and staff now projects a $3.9 million use of general-fund balance for the fiscal year. Staff also recommended budget adjustments that would increase appropriations by $526,184, offset in part by $372,500 in additional revenues for a net projected use of approximately $153,684.

The adjustments reflected department requests including legal-services funding for unanticipated matters, community-development line-item corrections and additional appropriations tied to AB 130 review work and advertising/notice costs, a $25,000 human-services grant correction, and a $7,488 technology expense to support SB 707 language-accessibility requirements (real-time Chinese translation) for council meetings.

Councilmembers asked clarifying questions about which adjustments were applicant-funded (environmental reviews and advertising fees are passed through to applicants) and how language-support costs are determined. Staff said the SB 707-required translation costs are not covered by state funding and that adding more languages would materially increase costs.

Council voted to accept the third-quarter report and adopt the proposed budget modifications and compensation schedule amendment for unrepresented employees; the motion carried with Councilmember Wong absent.