Laserfiche WebLink
File Number: 25-288 <br /> <br />Given the economic uncertainties, the City will continue to monitor potentially volatile key revenue <br />sources, such as sales tax and real property transfer tax, and make adjustments as information <br />becomes available. The conservative approach to revenue estimates helps mitigate large <br />variances in revenues, which could negatively impact the City’s net fiscal position. As the <br />economic landscape continues to evolve, the City will remain attentive and fiscally aware of any <br />changes that have an impact on the long-term fiscal forecast. <br />General Fund Expenditures <br />Budgeted operating expenditures for FY 2025-2026 are projected to be $156.1 million, a <br />decrease of 5% compared to the FY 2024-2025 adjusted budget. Employee salaries and <br />benefits are the largest line-item expenditures in the General Fund. The Alameda County Fire <br />Department contract for services and equipment accounts for 22% of General Fund expenditures. <br />General Fund salaries and benefits are estimated at $74.0 million for FY 2025-2026. Total <br />personnel costs are 1.6% lower than the FY 2024-2025 projected budget. Due to impacts of a <br />competitive labor market, full-time and part-time positions remain vacant in the current fiscal year. <br />To balance the operating budget, current vacant positions were evaluated to determine the <br />feasibility of eliminating positions. The proposed FYs 2025-2026 and 2026-2027 biennial budget <br />include the elimination of specific vacant positions and a reduction in part-time employee hours. <br />As the City works to address and resolve the City’s ongoing structural deficit, it must also take a <br />strategic approach to staffing to ensure that it can manage workloads and respond effectively to <br />the needs of the community. Balancing staffing needs will require careful and strategic analysis. <br />The City remains committed to thoughtful and sustainable workforce planning over the next year <br />and beyond. Personnel costs represent 47% of the General Fund budget. As a service <br />organization, the City’s core expenditures are personnel-related. <br />General Fund reserves are used to support the continuity of existing services, prevent the <br />disruption of projects and programs, and pay for one-time costs and investments. These <br />investments will benefit the City in the long run by enhancing services and building infrastructure. <br />A total of $6.1 million for FY 2025-2026 and $6.4 million for FY 2026-2027 is proposed for <br />allocation from the General Fund Undesignated (unassigned) Reserve. <br />General Fund Reductions <br />For several fiscal years, the City has adopted budgets that projected structural deficits - rising <br />expenditures with limited revenue growth, resulting in the projected use and drawdown of fund <br />balance. Ongoing structural deficits are unsustainable and detrimental to the long-term fiscal <br />health of the organization. In the continuing effort towards long-term fiscal stability, the City <br />proposes several reductions in General Fund expenditures in FYs 2025-2026 and 2026-2027. <br />The City’s departments conducted a thorough review of budgetary needs and proposed <br />reductions that had the least amount of impact on service levels, while ensuring that the City <br />continues to deliver on core services. While some proposed reductions will result in minimal to <br />no impact on service delivery levels, others are anticipated to have notable impacts on the <br />community and service delivery levels. General Fund reductions that will result in impacts to the <br />community, including reductions in service delivery levels, primarily affect the Public Works, <br />Page 3 City of San Leandro Printed on 9/4/2025