Title
Fiscal Year (FY) 2025/26 Budget Update and Proposed Adjustments
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FileID
File ID: 2026-00416
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Location
Location: Citywide
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Recommendation
Recommendation: Adopt a Resolution: 1) accepting the FY2025/26 budgetary adjustments; 2) committing $7.7 million in FY2024/25 year-end resources for future budget development; 3) providing direction on the process to balance a two-year budget; and 4) authorizing the City Manager or designee to make all necessary budgetary and accounting adjustments.
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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
5-Supplemental Budget Information
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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...
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