CITY COUNCIL AGENDA PACKET - Laserfiche WebLink

Following the adoption of the two-year budget, the City will develop a comprehensive long- term Financial Sustainability Plan over the next 12-18 months. This plan will address {nancial strategies to be deployed over the next {ve years, beyond immediate budget reductions. These strategies will include exploring revenue options, advancing economic development initiatives, conducting an organizational assessment, completing the City’s {rst asset management plan, evaluating pension funding options, and updating the reserve policy. Staff is in the process of developing a scope of work and identifying consultants to conduct the organizational assessment with the goal of improving ef{ciency and containing costs. This will be in addition to work that has already been done to improve ef{ciencies and effectiveness, such as the consolidation of the Engineering and Operations Services Departments that was implemented during the 2023-25 budget cycle. For the proposed two-year budget, staff recommends consolidating the Economic Development Division with the Community Development Department to enhance focus on economic development activities, including review of City permitting processes. The challenge remains signi{cant, and there are no easy solutions. However, this issue is not unique to Pleasanton. Cities across California, and even around the country, are dealing with similar {scal challenges. While the community did not provide the necessary support for Measure PP, their input and overall participation through all of the outreach efforts over the past several months showed that they deeply care about, value, and want to preserve the services and programs, and want to be engaged. The City’s work is not yet done, and this administration is committed to continue working with the City Council and the community to work collaboratively to address the structural de{cit, ensure the City’s long- term {scal sustainability, and maintain Pleasanton’s quality of life. The following is an overview of the Budget, the City’s {nancial challenges, regional economy, and City Council priorities re|ected in the budget. FY 2025/26 and FY 2026/27 Citywide BudgetFY 2025/26 and FY 2026/27 Citywide Budget The FY 2025/26 expenditure budget across all operating funds totals $248.2 million, including General Fund, Enterprise Funds, Special Revenue Funds, Internal Service Funds, Debt Service Funds, and Trust Funds. The FY 2026/27 budget totals $257.5 million. 3Page 284 of 682