The finance committee of the San IM City Council today is Wednesday, September 30th, 2026.

Or we please call the role.

Mayor Gonzalez.

Present.

Vice

Mayor Vivero Salton.

Present.

Councilmember Victoria Agia.

Present.

And

would you please read your answer?

After each agenda item is presented, the mayor will ask for committee member comments and then take public comment.

You'll have two minutes for your comment.

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Well

that we'll go to item two eight of our agenda, which is the fiscal year 2026 preliminary year and financial performance measures report.

We've got assistant finance director for which you're still here to present.

Okay.

I do want to emphasize preliminary.

We are still working through final adjustments, and we will also still need to undergo our annual audit.

We anticipate the annual audit to come before committing at the beginning of the next calendar year.

Ah, there we go.

Okay.

So first we want to take a look at our general fund revenue.

And the first thing I'm going to do is just get us oriented to the slides.

On the left, we have our general fund revenue categories.

And then if we go from left to right or in column of B, what you see between B and C are fiscal year 25 actuals and fiscal year 26 actuals, and then D shows a year over year comparison.

If we take a look at the box, columns E through G, we've got our amended budget as well as the actuals and how we did compare budget to actuals.

And first thing to note is a favorable picture from a budget perspective, it was favorable.

And when we look at our trend year over year, also favorable.

Looking at again the comparison between 25 and fiscal year 26.

We um were uh saw an increase of about 2%, so 150.2 million in overall revenue compared to actual uh 147.7 in fiscal year 25.

And um just saying here on the year over year trend or um a minute, uh looking at columns B through D.

Just a few things to note.

Um, we'll take a look at our um major revenue categories in uh the next uh slide, but overall again uh looking pretty consistent uh year over year.

Uh some revenue sources such as uh utility user tax.

You sometimes may see a slight fluctuation based on uh the timing of when we receive remittances, uh, and we also um have uh just some declining uh sources there, such as cable TV.

Um other than that, things looked uh pretty uh straightforward, and then in the other tax category, um, you'll see a year over year change with 15 percent, and that was largely um related to transient occupancy tax and an increase there.

So um, if we uh take a look at the um revenue categories that are not tax related, uh saw a pretty significant year-over-year increase in charges for services, primarily related to the study implementation as well as um increased regulation programming

uh

interest and property income down a bit, but uh still very positive related to the interest um that we've been receiving over the last two year, very uh robust interest rate returns.

And then we also do have a little bit of an anomaly here under fines, fees, and forgoters and uh a negative uh two percent in uh sorry I think it's 200,000 in um fiscal year 26, and that's related to um an adjustment for um code enforcement citations, community development was able to work with the property owners for voluntary compliance, and we were able to reverse some of those citations, and then uh down the license and permits again.

And then down to licensing permits again, looking at fee study implementation in that year over year increase primarily as well as everything cannabis permit.

So that takes care of the largest variances again year to year, but overall positive 2% increase.

Again, positive overall 1% increase.2 million versus the budget of 149.4, and again, very preliminary but uh positive.

And uh we talked a little bit about utility users tax, um, how we have a little bit of a declining source and cable TV, and then also how sometimes those receipts can lag a bit based on the remittance timeline.

Property transfer tax, 84%.

I'll go into a little more detail on the next slide.

Um, and other than that, looking um pretty um you know consistent between budget and actuals.

We've already talked a little bit about interest rates, um looking uh looking like it's lower year to year a little bit, but definitely favorable compared to budget due to those robust interest rates for the year and um intergovernmental seeing an increase there due to FEMA reimbursements.

So with that move on to the next limit.

So general fund revenue budgets versus actuals, and here we have our major tax groups, we've got our property tax.

Um right in line with our long-term trend, 3%, larger largely driven by our secured tax related to real property.

So when we look at that, we're um when we see 3%, we're looking at that 2% CPI that we typically get and a little bit of growth that we was received when we have turnover in uh properties andor land improvements.

Sales tax, um, we did need to decrease the um sales tax projection by um two and a half million, I believe, at um roughly at the beginning of uh the wasn't beginning, it was I think our mid-year budget, um which was April 6th, uh council adopted that.

And um, but when we look at where we're at overall, we we ended up more favorably there, still um looking at um consumers spending more on services and uncertain economy that's overall impacting that uh category.

Utility users uh tax we've already talked about, and then franchise fees largely driven by rep use um uh franchise fees and contract reimbursements as well as recycling, and then the property transfer tax um lagging a little bit compared to the projection looking at uh the high interest rates impacting uh the willingness for for um property potential property um buyers to make purchases as well as um then resulting in limited housing supply for turnover and again looking at the overall uncertain um economy impacting property transfer tax in other revenue.

We have um all of our other taxes, so we've got business license, we've got um our emergency uh communications, we've got charges for service and and all of those categories, and what you see there is again just a recap of what we saw on the other slide where um is looking uh pretty favorable and it's compared to budget next slide.

This is the same, but it shows it in a percentage format.

So