City Council

12C. FISCAL YEAR 2025/26 MID-YEAR BUDGET REVIEW AND PROPOSED MID-YEAR\nBUDGET ADJUSTMENTS\nThis report provides an overview of the City’s current economic environment and an\nanalysis of the City’s fiscal position based on the FY 2025/26 mid-year financial report.\nThe purpose of this analysis is to evaluate the performance of major revenue sources,\nassess expenditure trends, review fund balances, and identify potential fiscal risks that\nmay affect the City’s financial outlook.\nOverall, the City remains in a stable fiscal position with strong reserves and balanced\noperations; however, staff will continue to exercise prudent financial oversight and closely\nmonitor economic conditions at the national level for potential impacts on the City’s\nfinancial outlook.\nRECOMMENDED ACTION:\n1. City Council find that this item is not subject to California Environmental Quality Act\n(“CEQA”) pursuant to Sections 15378(b)(5) (Organizational or administrative activities\nof governments that will not result in direct or indirect physical changes in the\nenvironment); and\n2. City Council approve the budget adjustments summarized in Attachment A.