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File Number: 25-101 positions, as well as funds approved to carryover are considered, FY 2023-2024 ended with a positive balance of $915,936. Year-end surpluses are considered one-time funding. Consistent with best practice, Staff recommend a one-time appropriation of $457,968 to the pension trust and the remaining $457,968 to return to fund balance to offset projected budget deficits in future years . Pension Trust Fund Staff propose appropriating and transferring $457,968 to the Pension Trust Fund. The PULL Plan calls for the City to direct up to 50 percent of all annual General Fund carryover funds toward unfunded liabilities. In addition, the plan directs 50 percent of all General Fund land sales toward PULL. In 2021, the City Council authorized establishing the Section 115 Pension Trust Fund with PARS (managed by PFMAM). The City’s objective is to set aside funds and accumulate investment earnings to buy down the City’s unfunded pension liability. The City’s prior contributions to the Trust total $28,932,725. The Net Pension Liability reported as of June 30, 2024, was $235,700,000. Deficit Reduction Staff propose preserving $457,968 to return to fund balance for budget stabilization over the long term. Projected ongoing structural deficits will require planned use of fund balance. As of the last presentation of the City’s 10-year forecast, the General Fund Fiscal Year 2027-2028 budget is estimated to have a deficit of approximately negative $3.5 million. Replenishing reserves will help sustain a structural imbalance while staff continue to seek efficiencies, expenditure reductions, and revenue growth as part of fiscal sustainability efforts to support City services and operations. City Council Priority Work Session On February 1, 2025, City Council participated in a priority work session for the upcoming fiscal year. During this session, Council was updated on the accomplishments and progress of current priority initiatives as well as current capital needs and a financial forecast. Additionally, this was also an opportunity for City Council to provide feedback to staff regarding the top three priorities for staff to focus its efforts. While the prioritization work showed that Infrastructure, and specifically, streets and road repair, remain a top priority for City Council, no formal action was taken to implement a policy to allocate year-end unspent budget to streets and road repair. Current Agency Policies ·The Prioritizing Unfunded Liability Liquidation Plan (PULL Plan) calls for the City to direct up to 50 percent of all annual General Fund carryover funds toward unfunded liabilities. In addition, the plan directs 50 percent of all General Fund land sales toward PULL. Previous Actions ·City Council approved FY 2023-2024 budget carryover to FY 2024-2025 for ongoing previously approved City Council initiatives on November 4, 2025. Page 2 City of San Leandro Printed on 9/4/2025