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File Number: 25-288 The City Manager’s Proposed Budget incorporates the estimated revenues and planned expenditures for all General Fund, Special Revenue Funds, Enterprise Funds including Internal Service Funds, and other agency funds (Successor Agency to the former Redevelopment Agency, and the Public Finance Authority). The resource totals for all funds in the biennial budget are $239.9 million in FY 2025-2026, and $240.1 million in FY 2026-2027. Total proposed expenditures amount to $272.9 million in FY 2025-2026, and $265.1 million in FY 2026-2027. GENERAL FUND The General Fund finances the operations of the City that have no special or dedicated revenue sources. The fund pays for the core services and basic operations of the City. Total FYs 2025-2026 and 2026-2027 General Fund expenditures are $156.1 million and $160.8 million, respectively. Estimated revenues for FYs 2025-2026 and 2026-2027 amount to $149.9 million and $154.5 million, respectively. Estimated revenue projections are intended to finance the anticipated expenditures. General Fund Key Revenues ·Property Tax - Total property-related tax revenues are budgeted at $33.8 million in the proposed FY 2025-2026 budget, an increase of $1.8 million compared to the FY 2024- 2025 adjusted budget. Property Tax is the City’s second largest revenue source and represents 22% of total General Fund revenue. ·Sales/Transaction Taxes - Sales/Transaction Tax revenues are budgeted at $54.9 million in FY 2025-2026, an increase of $1.5 million compared to the FY 2024-2025 adjusted budget. While this revenue source is impacted by economic conditions, Avenue Insights, the City’s sales tax advisor, estimates that the City will receive the projected budget amount in FY 2025-2026. Reviews and adjustments to this revenue source occur regularly, as economic conditions can be unpredictable. This amount includes Transaction Use Tax (Measure HH from 2014) that is estimated at $14.6 million in FY 2025-2026. Sales and Transaction Taxes are the City’s largest revenue sources and account for 37% of the General Fund revenue. ·Utility User’s Tax (UUT) - Total UUT revenues are estimated to decrease by $215,957 in the proposed FY 2025-2026 budget compared to the 2024-2025 adjusted budget. The FY 2025-2026 budget is estimated at $13.7 million in UUT revenues. UUT is not expected to increase significantly in future years due to the use of renewable energy and increased competition in the telecommunications market (e.g., cable TV and wired and wireless telecommunications). ·Real Property Transfer Tax (RPTT) - Total projected RPTT revenues are estimated at $10.4 million in FY 2025-2026. This is an increase of $1.6 million compared to the FY 2024-2025 adjusted budget. Ballot Measure VV, increasing the Real Property Transfer tax rate from $6 per $1,000 in valuation to $11, is estimated to achieve an increase of $4.9 million annually. This tax is highly volatile, relying on the timing of changes in property ownership. Page 2 City of San Leandro Printed on 9/4/2025