Title
Fiscal Year (FY) 2025/26 Budget Update and Proposed Adjustments
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FileID
File ID: 2026-00409
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Location
Location: Citywide
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Recommendation
Recommendation: 1) Review the proposed budgetary adjustments and commitment; 2) review the proposed authority adjustment; 3) discuss updates to the development of a two-year budget process; and 4) pass a Motion forwarding to the City Council for approval.
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Contact
Contact: Peter Coletto, Director, (916) 808-5416, pcoletto@cityofsacramento.org; Mirthala Santizo, Budget Manager, (916) 808-5078, msantizo@cityofsacramento.org, Department of Finance
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Presenter
Presenter: Peter Coletto, Director, (916) 808-5416, pcoletto@cityofsacramento.org; Mirthala Santizo, Budget Manager, (916) 808-5078, msantizo@cityofsacramento.org, Department of Finance
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Attachments
Attachments:
1-Description/Analysis
2-Resolution
3-Citywide Revenue Adjustment Details
4-Prior Year Savings Policy
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Description/Analysis
IssueDetail
Issue Detail: As the City prepares for the upcoming budget cycle, the mid-year forecast shows the City continues to be in a structural deficit with a budget gap of $66.2 million projected for FY2026/27 that continues to grow in the future years of the forecast. This is not due to an economic downturn but is a fundamental imbalance between City expense growth and revenues. While the current fiscal year remains balanced, the proposed budget commitment of remaining resources will support financing potential additional current year costs associated with labor negotiations as well as closing the FY2026/27 projected budget gap.
Fiscal Year 2025/26 Update
Based on citywide revenue performance throughout the first five months of FY2025/26, staff are recommending several revenue adjustments resulting in a net increase of $2.9 million, as reflected below:
The General Fund will also have $0.9 million in reduced expenses associated with lower Cannabis Business Operations Tax reve...
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