Note: The agenda and minutes indicate the meeting was held on February 25, 2026, but the provided timestamp notes March 4, 2026. This summary uses the provided date.
The San Leandro Finance Committee, chaired by Mayor González, convened to review the FY 2026 Mid-Year Financial Report as of December 31, 2025, and proposed adjustments to the adopted budget. Finance Director Nicole Gonzales presented the report, which included revenue and expenditure trends, proposed changes, and a 10-year forecast. The committee unanimously recommended forwarding the item to the full City Council for approval.
Vice Mayor Bivaras Walton. Councilmember Aguilar. Present. Thank you. She arrives. Thank you. Will you please submit our announcement? Yes. After each agenda item is presented, the mayor will ask for committee member comments and then take public comment. You have two minutes for your comments. Account down timer will appear for the convenience of the speaker and attendees. Great, thank you. Good afternoon to the mayor and the finance committee. We do have one item tonight or this afternoon to speak with you about. It is our fiscal year 2026 mid-year financial review as well as proposed adjustments at mid year for the remainder of the current fiscal year. So the first part of the presentation this afternoon will focus on where we are at mid-cycles through the current fiscal year. So expenses and revenue through December 31st, 2025. And so wanting to provide an update to give you a little idea where we're at when we're looking at columns B through D are where the city was at this time in fiscal year 2425. So this was through 2024, December 31st. Columns E through G is a review of where we are this current fiscal year for the same period of time, July 1st through December 31st, 2025. And so really wanting to call attention to a couple areas. One looking at line 20, which is our total revenue. If we're looking at percent of budget, so how much have we collected through December 31st, 2025 compared to 24, you'll see a 37% in both areas. So we are trending in a way in which we would expect some of our larger revenues that come in in the first latter part of our students in the first part of the fiscal year is really related to property tax. So the city receives two payments or remittance of its property tax, the largest typically occurring in the first part of the fiscal year, so around December, we've received that. And so you'll see we're about when you're looking at our property tax line on line three of this table, we're trending very close, 50% 46% to date. And so when you look at the uh the comparison of G and D, which is the percent that we've collected here to date through the same period, we are trending very similar. So there are no areas of unnecessarily concern. We will talk a little bit about some areas like sales tax in the next portion of this presentation. Um we continue to see a decline in that area. It is consistent with what we're seeing regionally, um, and um we do again meet with our uh sales tax um consultants on a regular basis and we're constantly uh being as up to date and current with trends as possible. So we'll talk a little bit about that in the second part of the presentation. So moving to expenditures, uh, lines 22 through 38. Um, you'll see that um on line 36 again, comparing column D and G, we're spending our regular operating expenses at the same rate or similar rate to where we were last year. So again, there's nothing that is sticking out as an anomaly or something to be concerned that we're overspending or spending too quickly. Um and then when you look at the comparison of our transfers and our expenditures, so you're looking at line 38, so all of our operating expenditures and our transfers. Um, we're we're trending a little higher, um, but nothing of significant concern. Um, we are showing we're uh about 42 percent spent through the fiscal year. If you straight line it across, we should be around 50 percent. Um we'll talk a little bit about some of those anomalies again, and and really the expenditures that we're looking at here are capturing actual expenditures that we have made. This is not taken into consideration funds that we may have encumbered and obligated to send to the end of fiscal year. So now that we've kind of done a brief overview of where we we've been the last six months, um, we use that data to help inform our decisions as we move forward to the second half of the fiscal year. So, do we need to make necessarily necessary adjustments to our revenue projections? Um, are there emergency needs that came up that we're not accounting for as far as expenditures are concerned, and we'll talk a little bit about that. So jumping into our proposed changes as it reflects related to revenue. We really want to kind of highlight the different areas where we're seeing different changes occurring since the time of adoption in June. So starting with sales tax on line three, we are showing a reduction of about 2.8 million dollars. Again, we meet with our sales tax consultants on a quarterly basis. We are always tracking this particular revenue. It is one of the city's largest revenue streams in the city of San Leandro, and so it is also one that is very indicative of what's happening in the economy.