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Proposed Fiscal Year 25-26 Mid-Year Budget Update, Appropriation Requests,
<br /> Workforce Changes, and Capital Improvement Program Amendment
<br /> March 3, 2026
<br /> Page 3
<br /> General Fund Revenue
<br /> A summary of General Fund revenues through December 31, 2025 follows.
<br /> AnnualBudget
<br /> Estimate
<br /> through Received as
<br /> Revenue Source .11213112026 of 1213112025
<br /> Property Tax/ Property Tax In-Lieu of VLF $ 95,877,210 26,083,780 27.2%
<br /> Bales Tax (Measure ) $ 83,953,880 $ 27,494,022 32.7%
<br /> Bales Tax (Bradley Burns) $ 59,908,190 $ 19,026,861 31.8%
<br /> Other General Fund Revenue $ 49,431,060 $ 17,626,73 35.7%
<br /> Charges for Service $ 31,265,650 $ 16,877,966 54.0%
<br /> Utility Users Tax 29,250,000 13,386,577 45.8%
<br /> Business License $ 17,500,000 $ 3,414,200 19.5%
<br /> Franchise Fees $ 13,600,000 $ 4,851,028 35.7%
<br /> Cannabis Revenue $ 12,651,460 $ 4,091,504 32.3%
<br /> Jail Revenue $ 10,853,500 $ 2,168,925 20.0%
<br /> Hotel Visitor's Tax $ 9,500,000 $ 4,209,150 44.3%
<br /> Total General Fund Revenue' 413,790,950 $139,230,750 33.6%
<br /> 'Section 115 Trust Jnvestm ent Income is excluded from this analysis; the revenue generated
<br /> can only be spent on pension-related activities
<br /> As of December 31, 2025, the City generated approximately $139.2 million in revenue,
<br /> or 33.6%. Because the City receives most of its revenue within 60 days of the
<br /> corresponding period, we can expect to have received approximately four (4) months
<br /> (or 33%) of revenue by December 31. One notable exception is the Business License
<br /> Tax, which accounts for the majority of the City's revenue in the spring of each year.
<br /> The following section provides a discussion on General Fund performance based on the
<br /> latest information.
<br /> Sales Tax (Bradley Burns)
<br /> The Bradley-Burns sales tax revenue estimate for the fiscal year was $59.9 million.
<br /> Based on sales tax receipts from two completed quarters and updated information from
<br /> the City's sales tax consultant, staff has reduced the revenue estimate by $996,800 to
<br /> $58.9 million.
<br /> Sales tax receipts from July through September were 0.3 percent lower than in the
<br /> same period of 2024. The decline was driven primarily by the closure of several used-
<br /> car dealerships, which significantly reduced auto and transportation receipts, as well as
<br /> by generally softer consumer spending. Building construction receipts were also lower,
<br /> as one-time contractor revenues recorded in the prior year did not recur. In addition,
<br /> restaurant sales, particularly among quick-service and casual dining establishments,
<br /> City Council 20 — 3 3/3/2026
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