CITY COUNCIL AGENDA PACKET - Laserfiche WebLink

Page 1 of 9 Item #15 CITY COUNCIL AGENDA REPORT May 20, 2025 Finance TITLE: REVIEW OF THE PROPOSED TWO-YEAR OPERATING AND CAPITAL BUDGET FOR FY 2025/26 AND FY 2026/27 AND THE FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM FOR FY 2025/26 THROUGH FY 2029/30 SUMMARY Every two years, the City adopts a balanced two-year Operating and Capital Budget and approves a multi-year Capital Improvement Program (CIP). For the upcoming budget year, the City faces an ongoing General Fund structural deficit, meaning expenses have and are expected to continue to grow faster than revenues. This report presents the two-year Proposed Budget and five-year Capital Improvement Program (CIP) incorporating the direction of the City Council on General Fund Budget reduction recommendations from prior public meetings to facilitate public comment, address any budget-related questions, and provide direction regarding amendments or additional information in advance of the planned formal adoption of the City budget in June. Copies of the Proposed Budget and CIP books have been distributed to the City Council and are attached to this report. RECOMMENDATION Staff recommends the City Council: • Review the Proposed Operating and Capital Budget and CIP; and • Provide direction regarding issues or amendments to address prior to formal City Council action planned for June 17, 2025. BACKGROUND The Proposed Operating and Capital Budget includes a comprehensive and detailed account, forecast and plan for all City revenues and expenditures across all funds, including the General Fund, Enterprise Funds, Internal Service Funds, Special Revenue Funds, Debt Service Funds, and Capital Project Funds. Both the two-year budget and the Capital Improvement Program (CIP) documents include narratives and details that provide information regarding budgetary adjustments, issues, and goals; the budget messages in the Proposed Budget and the CIP provide notable highlights. As with all City budgets, this document focuses attention on those areas deemed by the City Council to be a high priority, as outlined in the ONE Pleasanton Strategic Plan. At special City Council budget workshops on April 8 and 10, the City Council received reports and provided direction to staff on the recommended General Fund program and service budget reductions for fiscal years 2025/26 and 2026/27 and the five-year CIP capital projects reliant on General Fund contributions. Those reports can be viewed at: https://pleasantonca.portal.civicclerk.com/event/409/files/agenda/958 and https://pleasantonca.portal.civicclerk.com/event/448/files/agenda/987. Page 264 of 682