OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Budget and Audit Committee Meeting Summary – February 3, 2026

Budget and Audit Committee — Tuesday, February 3, 2026
BodySacramento, California
SessionBudget and Audit Committee
DateTuesday, February 3, 2026
StatusFILED
Video Record
0:00 / 48:32
Transcript — Verbatim
0:00

All set? Okay. We will call to order the Budget and Audit Committee meeting for February 3rd,

0:22

2026 and welcome to those of you who have joined us this morning. You are welcome to participate

0:29

and the committee's deliberations today. If you want to do that on any item on our agenda,

0:35

please fill out a speaker form and deliver that to the clerk here at the front of the chambers.

0:40

We'll make sure to recognize you on the item in which you are interested. Please remember that

0:45

you have two minutes for public comment on any item and you can see the clock tick down. So keep

0:52

your eye on the clock if you're commenting. So you make sure to finish your remarks within the

0:58

allotted time and get to say everything that you want to share with us. With that, I think we

1:04

probably need to call the roll, don't we? Council Member Talamantes? Here. Council Member Maple?

1:08

Here. Council Member Geta? Here. And Chair Dickinson? Here. We have a quorum. We have a quorum and

1:14

Council Member Vice Mayor, if you would lead us in the acknowledgement and the pledge. Please rise

1:19

Thanks for the opening acknowledgments and honor of Sacramento's indigenous people and

1:23

tribal land.

1:24

To the original people of this land, the Nisanon people, the Southern Maidu, Valley and Plains

1:28

Miwok, Patwin-Wintun people, and the people in the Wilton Rancheria, Sacramento's only

1:33

federally recognized tribe.

1:34

May we acknowledge and honor the native people who came before us today and still walk beside

1:38

us today on these ancestral lands by choosing to gather together today in the active practice

1:43

of acknowledgement and appreciation for Sacramento's indigenous peoples' history, contributions,

1:48

and lives.

1:49

salute. I pledge allegiance to the flag of the United States of America and to the republic for

1:56

which it stands one nation under God indivisible with liberty and justice for all someday. Thank you.

2:06

All right we have four items on our consent agenda.

2:12

Any member of the committee wish to speak on any of the consent items?

2:19

Second.

2:20

And do we have any members of the public who wish to address this on the consent items?

2:23

I have no members of the public to speak on consent.

2:26

All right.

2:26

In that case, we have a motion and a second to adopt the consent items.

2:30

All those in favor, signify by saying aye.

2:32

Opposed, say no.

2:33

And abstentions.

2:35

That's unanimous.

2:37

We're rolling now.

2:39

Okay.

2:39

We're going to go on to item five.

2:43

This is our auditor.

2:43

2425 baseline funding verification for the sacramento children's fund good morning welcome

2:52

all right so good morning members of budget and audit i'm farishta arari their city auditor

3:00

with me today is joe fleming who was the lead on this project but many as many of you guys know

3:07

this was a office-wide effort for our office.

3:11

The recommendation that is before you is to accept the city auditor's fiscal year baseline

3:16

funding verification for the Sacramento Children's Fund and forward it to the city council for

3:21

approval. This is our second year conducting the baseline funding verification and the city

3:28

charter requires that we conduct this analysis annually. Now I'm going to pass it over to Joe

3:35

to continue the presentation for our fiscal year 25 report and the next item as well.

3:46

Good morning, members of the Budget and Audit Committee.

3:48

My name is Jill Fleming.

3:50

I am a senior fiscal policy analyst with the Office of the City Auditor.

3:54

The Sacramento Children and Youth Health and Safety Act, also known as Measure L,

4:00

was passed by voters in 2022.

4:02

This established city charter section 120, the Sacramento Children's Fund, and required the city auditor to calculate and publish the baseline funding amount by December 31st, 2023.

4:16

The city auditor fulfilled this obligation and calculated the baseline funding amount to be $22.9 million.

4:23

Each year, the city auditor is required to verify whether the baseline funding amount

4:30

was expended in the prior fiscal year.

4:37

The objective of this project was to fulfill the requirement outlined in Section 120, subsection

4:43

E1C of the Sacramento City Charter by verifying that the baseline funding amount of $22.9

4:49

million dollars was expended in fiscal year 2425.

4:54

The scope of this project was city expenditures for fiscal year 2425 or those that were made

5:01

between July 1st, 2024 and June 30th, 2025.

Discussion Breakdown — Share of Meeting
Budget and Finance█████████████████████████████████████████████79%
Homelessness█████9%
Procedural███6%
Cannabis Regulation██4%
Economic Development█2%
Summary of Proceedings

Budget and Audit Committee Meeting Summary – February 3, 2026

The Budget and Audit Committee of the Sacramento City Council met on Tuesday, February 3, 2026, at 11:05 a.m. in the City Hall Council Chamber. The meeting was called to order by Chair Roger Dickinson and adjourned at 12:32 p.m. All four committee members were present: Eric Guerra, Caity Maple, Karina Talamantes, and Chair Dickinson. The committee unanimously approved the consent calendar and discussed several financial audit items, the FY2025/26 budget update, the Annual Comprehensive Financial Report (ACFR), a councilmember proposal on illegal dumping, and the selection of a vice chair for 2026.

Consent Calendar

  • Meeting Minutes (File ID 2026-00161): Approved the December 9, 2025, Budget and Audit Committee meeting minutes.
  • Measure U Sales Tax Performance Audit (File ID 2026-00443): Accepted the FY2024/25 Measure U Sales Tax Performance Audit and forwarded to City Council for approval.
  • Appropriation Limit Calculation Report (File ID 2026-00447): Received and filed the FY2024/25 Independent Accountants’ Report on the Appropriation Limit Calculation.
  • City Auditor’s Activity Report (File ID 2026-00400): Accepted the City Auditor’s Activity Report for the 2nd Quarter of FY2025/26 and forwarded to City Council.

Public Comments & Testimony

  • No public comments were made on consent calendar items.
  • During discussion of Item 8 (FY2024/25 ACFR), members of the public provided comments (per the official minutes; the transcript does not capture these comments).
  • No public comments were made on other agenda items or on matters not on the agenda.

Discussion Items

  • Item 5 – Baseline Funding Verification for Sacramento Children’s Fund (File ID 2026-00378): City Auditor Farishta Ahrary and Senior Fiscal Policy Analyst Joe Fleming presented the FY2024/25 verification. The baseline funding amount of $22.9 million was expended. The committee voted unanimously to accept the verification and forward to City Council.
  • Item 6 – Audited Cannabis Business Operations Tax (CBOT) Amount for Children’s Fund (File ID 2026-00380): Joe Fleming reported audited CBOT revenue of $22,609,932 for FY2024/25, resulting in a $9.04 million contribution to the Children’s Fund after a true-up. Councilmember Maple inquired about the revenue shortfall; staff deferred to the Finance Department. The committee voted unanimously to accept the audit and forward to City Council.
  • Items 7 & 8 – FY2025/26 Budget Update & Proposed Adjustments (File ID 2026-00409) and FY2024/25 ACFR (File ID 2026-00432): Finance Director Pete Coletto and Budget Manager Mirthala Santizo presented jointly. Key points include:
    • FY2024/25 year-end results: $7.7 million in one-time general fund savings after a $7.1 million police union settlement.
    • FY2025/26 revenue trends: Property tax, utility users tax, transfer tax, and transit occupancy tax are above budget; cannabis BOT is below budget.
    • Five-year forecast shows a $66.2 million structural deficit for FY2026/27, primarily driven by homelessness costs and uncertainty over state HAP funding.
    • Departments have been asked to submit 15% reduction plans targeting $85.3 million.
    • Discussion of a potential two-year budget with a deficit tolerance percentage (options of 1% or 5% of second-year expenditures).
    • ACFR received a clean, unmodified opinion from independent auditor MGO, implementing two new GASB standards.
  • Item 9 – Councilmember Proposal on Illegal Dumping (File ID 2025-01975): The committee reviewed and voted unanimously to direct the appropriate council appointive officer to commence work on the proposal and forward it to City Council without further committee review.
  • Item 10 – Selection of Vice Chair (File ID 2026-00351): The committee selected Councilmember Karina Talamantes as Vice Chair for calendar year 2026.

Key Outcomes

  • All four consent calendar items approved unanimously (4-0).
  • Items 5 and 6 (Children’s Fund audits) approved unanimously and forwarded to City Council.
  • Items 7 and 8 (budget update and ACFR) approved unanimously; the committee recommended reserving the $7.7 million year-end savings for labor negotiations and budget balancing, and forwarded budget adjustments to City Council.
  • Illegal dumping proposal forwarded to City Council for consideration without further committee review (4-0).
  • Karina Talamantes elected Vice Chair for 2026 (4-0).
  • The committee discussed but took no final action on setting a deficit tolerance for a two-year budget; direction will be provided at a future meeting.

Meeting Transcript

All set? Okay. We will call to order the Budget and Audit Committee meeting for February 3rd, 2026 and welcome to those of you who have joined us this morning. You are welcome to participate and the committee's deliberations today. If you want to do that on any item on our agenda, please fill out a speaker form and deliver that to the clerk here at the front of the chambers. We'll make sure to recognize you on the item in which you are interested. Please remember that you have two minutes for public comment on any item and you can see the clock tick down. So keep your eye on the clock if you're commenting. So you make sure to finish your remarks within the allotted time and get to say everything that you want to share with us. With that, I think we probably need to call the roll, don't we? Council Member Talamantes? Here. Council Member Maple? Here. Council Member Geta? Here. And Chair Dickinson? Here. We have a quorum. We have a quorum and Council Member Vice Mayor, if you would lead us in the acknowledgement and the pledge. Please rise Thanks for the opening acknowledgments and honor of Sacramento's indigenous people and tribal land. To the original people of this land, the Nisanon people, the Southern Maidu, Valley and Plains Miwok, Patwin-Wintun people, and the people in the Wilton Rancheria, Sacramento's only federally recognized tribe. May we acknowledge and honor the native people who came before us today and still walk beside us today on these ancestral lands by choosing to gather together today in the active practice of acknowledgement and appreciation for Sacramento's indigenous peoples' history, contributions, and lives. salute. I pledge allegiance to the flag of the United States of America and to the republic for which it stands one nation under God indivisible with liberty and justice for all someday. Thank you. All right we have four items on our consent agenda. Any member of the committee wish to speak on any of the consent items? Second. And do we have any members of the public who wish to address this on the consent items? I have no members of the public to speak on consent. All right. In that case, we have a motion and a second to adopt the consent items. All those in favor, signify by saying aye. Opposed, say no. And abstentions. That's unanimous. We're rolling now. Okay. We're going to go on to item five. This is our auditor. 2425 baseline funding verification for the sacramento children's fund good morning welcome all right so good morning members of budget and audit i'm farishta arari their city auditor with me today is joe fleming who was the lead on this project but many as many of you guys know this was a office-wide effort for our office. The recommendation that is before you is to accept the city auditor's fiscal year baseline funding verification for the Sacramento Children's Fund and forward it to the city council for approval. This is our second year conducting the baseline funding verification and the city charter requires that we conduct this analysis annually. Now I'm going to pass it over to Joe to continue the presentation for our fiscal year 25 report and the next item as well. Good morning, members of the Budget and Audit Committee. My name is Jill Fleming. I am a senior fiscal policy analyst with the Office of the City Auditor. The Sacramento Children and Youth Health and Safety Act, also known as Measure L,

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