Agenda Item Wording:
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Fiscal Year 2025-26 mid-year review- Review fiscal year 2025/26 mid-year projections, review the General Fund surplus policy, and appropriate funds for various capital projects.
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Agenda Date: 04/20/2026
Prepared by: Renee Nagel, Finance and Technology Director,559-713-4375, Renee.Nagel@visalia.gov, Amee Swearingen, Budget Analyst, 559-713-4170, Amee.Swearingen@visalia.gov
Department Recommendation: That the City Council receives the Mid-Year budget update for the General Fund for this current fiscal year (FY 2025/26), review the General Fund surplus policy, and appropriate three capital projects for a total of $2,717,100.
Summary:
The annual mid-year budget review is a crucial component in ensuring financial transparency and stability. It allows the City Council to assess major operating funds like the General Fund Budget, make adjustments if needed, and gain a clear understanding of the City's current financial health. General Fund revenues are up in the major revenue categories, and departments are controlling their expenditures where practical, and working to enhance revenue collection where possible. Overall, the City continues to be in good financial shape. However, like all government agencies throughout California, the City is faced with higher contributions to fund pension obligations, technology cost increases, higher costs due to continued inflation, minimum wage increases, and the possibility of a recession.
Background Discussion:
Annually the Finance Department presents a mid-year budget report to City Council that compares the budget to the current financial status. On years when the two-year budget is being prepared, mid-year projections only focus on the General Fund. The General Fund is the largest fund for essential services and its revenue source can fluctuate with the economy. Mid-Year projections prepared in off budget years focus on all operating funds. The City is currently in the process of p...
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