HomeMy WebLinkAboutItem 8.1 Preliminary Budget for Fiscal Years 2026-27 and 2027-28 Agenda Item 8.1
STAFF REPORT
CITY COUNCIL
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DATE: April 21, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Colleen Tribby, City Manager
SUBJECT:
Preliminary Budget for Fiscal Years 2026-27 and 2027-28
Prepared by: Jay Baksa, Finance Director
EXECUTIVE SUMMARY:
The City Council will receive an overview of the preliminary two-year General Fund budget, as
well as an update to the City’s 10-year Financial Forecast. The 2026-2031 Capital
Improvement Program is presented under a separate item.
STAFF RECOMMENDATION:
Receive the report and provide direction in preparing the final Fiscal Year 2026-27 and Fiscal
Year 2027-28 Budget.
FINANCIAL IMPACT:
In Fiscal Year (FY) 2026-27, the Preliminary Budget reflects total General Fund revenues of
$136,485,879 and total expenditures of $126,270,319; and in Fiscal Year 2027-28, revenues
of $138,539,839 and expenditures of $132,177,145.
Transfers out to Capital Improvement Program projects and contributions to Internal Service
Funds total $7,900,000 and $8,350,000 in FY 2026-27 and FY 2027-28, respectively. This will
result in an increase to the General Fund of $2,454,294 in FY 2026-27 and a $1,845,796
decrease in FY 2027-28. Based on the updated 10-Year Forecast, the projected operating
deficit continues to show in Fiscal Year 2030-31.
DESCRIPTION:
The City of Dublin utilizes a biennial budget process, in which a comprehensive budget
document is prepared that establishes high -level priorities and specific departmental goals for
a two-year period. The second year of the cycle is the "update year," in which projections are
revised and changes highlighted. This year’s budget cycle represents the first year of this
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process.
The focus of this report will be the General Fund, as no major budgetary changes are
proposed in other funds. Also included is the u pdated 10-Year General Fund Forecast, which
provides context for the two-year budget proposals.
The Preliminary Budget is in a positive position, with General Fund operating surpluses of
$10,215,559 and $6,362,694 in FY 2026-27 and FY 2027-28, respectively, before contributions
to capital improvement projects and preventative maintenance. After transfers out, the result is
a net increase to reserves of $2,454,294 in FY 2026-27 and a net decrease of $1,845,796 in
FY 2027-28. Changes by category are explained in the section below, focusing on major
categories and including the assumptions used in the 10-Year Forecast.
Revenues
Property Tax
FY 2026-27 - Increase of $1,984,525 (3.0%)
FY 2027-28 - Increase of $3,414,815 (5.0%)
Property tax revenues are based on projections from the City’s tax consultant, incorporating a
2.0 percent annual Consumer Price Index (CPI) adjustment to assessed property value (the
maximum permitted under Proposition 13), as well as increases in valuation from home sales
and new construction.
New construction activity and home sales have slowed in recent years and are expected to
continue at a modest pace in FY 2026-27, with assessed property value projected to grow by
3.3 percent. Beginning in FY 2027-28 and through Year 5 of the 10-Year Forecast, assessed
valuation growth is projected at 5.0 percent annually, driven by new development, a projected
increase in home sales, and new construction coming to market. This incorporates a 2.0
percent CPI adjustment and anticipated transfer of ownership activity. Growth is projected at
2.5 percent annually in Years 6 through 10. A delinquency rate of 1.0 percent annually has
also been applied.
Sales Tax
FY 2026-27 - Increase of $358,636 (1.3%)
FY 2027-28 - Increase of $838,691 (3.0%)
In late March, the City received an updated sales tax forecast reflecting a slight downward
revision from the prior quarter. The adjustment is based on an updated economic outlook from
the City’s tax consultant, incorporating local and statewide trends that indicate continued
softness in consumer spending as households navigate higher prices and broader economic
uncertainty, including the effects of ongoing global conflicts.
This uncertainty is expected to have its most significant impact on the auto sect or. While
Dublin’s auto dealers have demonstrated resilience over the past year, Staff and its
consultants are closely monitoring recent global developments and their projected effect on
consumer spending. Specifically, energy market disruptions have contributed to higher fuel
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and transportation costs, while elevated inflation and tariffs have increased the cost of goods,
further straining household budgets. Together, these pressures are affecting consumer
purchasing patterns, particularly for high-cost discretionary items such as automobiles, which
represent nearly 40.0 percent of the City’s sales tax base.
Despite this revision, sales tax revenue is still anticipated to increase in both FY 2026-27 and
FY 2027-28 relative to the FY 2025-26 Amended Budget, as reflected in the table below.
Table 1: Sales Tax Projections
FY 2025-26 FY 2026-27 FY 2027-28
Amended Budget $27,574,345
December Projection $28,316,873 $28,665,605 $29,587,570
March Projection $27,921,866 $27,932,981 $28,771,672
Staff will continue to monitor economic conditions and sales trends closely, particularly within
the automobile sector, as these factors play a key role in shaping near-term revenue
performance and long-term fiscal planning.
Looking ahead, the 10-Year Forecast assumes annual growth of 3.0 percent in Years 3 and 4,
and 2.5 percent in Years 5 through 10. All revenue sharing agreements have been factored
into these projections.
Development
FY 2026-27 - Increase of $223,468 (2.3%)
FY 2027-28 - Decrease of $1,454,211 (14.3%)
Development revenue includes permitting fees and payments for planning and engineering
services provided by the City. Projections are based on the timing of development pro jects,
coordinated between Staff and developers. Revenue is estimated to increase slightly in FY
2026-27 relative to the FY 2025-26 Amended Budget, before declining in FY 2027-28 as active
development projects near completion.
It should be noted that revenues and their corresponding costs are not realized
simultaneously. Plan check costs are typically incurred approximately 12 months after revenue
is received, meaning that as development activity decreases, the associated reduction in costs
will trail accordingly. In anticipation of this, the City has maintained the Service Continuity
Reserve, currently at $3.2 million, to cover costs during that period.
Looking ahead, the 10-Year Forecast projects development revenue to remain flat in Years 3
and 4, followed by steady declines from Year 5 through Year 10 as the community approaches
build-out.
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Other Taxes
FY 2026-27 - Increase of $182,545 (2.5%)
FY 2027-28 - Increase of $185,980 (2.5%)
Other Taxes include Property Transfer Tax and various franchise fees covering electric, gas,
garbage, and cable services. Revenue in both fiscal years is projected to increase primarily
due to the annual garbage rate adjustment established in the franchise agreement, as well as
increases in gas and electric rates.
Property Transfer Tax revenue remains closely tied to housing market conditions and has
stayed near a 10-year low, reflecting subdued property sales activity. Cable franchise fee
revenue has continued its gradual decline over the past decade driven by cord -cutting trends.
The 10-Year Forecast projects overall annual growth of 3.0 percent, reflecting the steady rate
adjustments in utility franchise fees offsetting the continued softness in transfer tax and cable
revenues.
Charges for Services
FY 2026-27 - Increase of $831,994 (11.8%)
FY 2027-28 - Increase of $240,458 (3.1%)
Charges for Services revenue is derived predominately from Parks and Community Services
(PCS) programs. The projected increase in FY 2026-27 reflects the following:
Increases:
Opening of the Dublin Arts Center (partial year)
Addition of a ninth after-school program site
The Wave fee adjustment
Addition of new Special Event programming, including the Night Market and Community
Garage Sale
Decreases:
Lower than projected attendance in the Jr. Warriors program
Loss of major contract vendor (Skyhawks)
Reduced Preschool enrollment
The modest growth projected in FY 2027-28 reflects a stabilization of PCS revenue following
the FY 2026-27 expansions and includes a full year of revenue from the Dublin Arts Center.
Non-PCS revenue includes administrative fees collected from the City’s contracted garbage
collector (Amador Valley Industries), projected to increase 5.0 percent consistent with the
franchise agreement, and emergency response reimbursements from Alameda County for
services at Santa Rita Jail, which are projected to remain flat. The 10-Year Forecast assumes
2.0 percent annual growth across all Charges for Services revenue.
Interest
FY 2026-27 - Decrease of $2,976,400 (28.1%)
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FY 2027-28 - Decrease of $1,295,400 (17.0%)
Staff and the City’s consultants anticipate that interest rates will decline over the next two
years, though uncertainty remains regarding the timing and magnitude of potential Federal
Reserve rate adjustments. Given this uncertainty, Staff has taken a conservative approach to
forecasting interest revenue.
The projected decrease of $2.97 million in FY 2026-27 is driven primarily by the planned
drawdown of General Fund reserves to support Capital Improvement Program (CIP)
expenditures as well as anticipated rate cuts, bringing the projection in line with the FY 2025–
26 Adopted Budget. A further decline of approximately $1.29 million (17.0 percent), is
projected in FY 2027-28, reflecting continued CIP spending and additional anticipated rate
reductions. Staff will continue to monitor Federal Reserve actions in coordination with City
consultants and adjust projections as needed throughout the fiscal year. Looking ahead, the
10-Year Forecast projects interest revenue to remain flat in Years 3 and 4, followed by annual
decreases thereafter as the City draws down planned General Fund Reserve spending and
interest rates continue to decline.
Rentals and Leases
FY 2026-27 - Increase of $303,045 (13.9%)
FY 2027-28 - Increase of $60,500 (2.4%)
The FY 2026-27 increase is primarily driven by strong demand for field and court rentals and
Shannon Community Center rentals, as well as revenue associated with the opening of the
Dublin Arts Center. It should be noted that these projections do not reflect the proposed field
rental fee adjustments approved in the Master Fee Schedule update, that will become effective
January 1, 2027. Staff will monitor the impact of the increased fee on field usage and adjust
future revenue projections accordingly.
Revenue projections for FY 2027-28 include a 5.7 percent increase in field and court rental
revenue, with all other rental categories remaining flat. The 10-Year Forecast assumes 3.0
percent annual growth, with revenue projections to be reevaluated as the effect of any fee
adjustments on utilization becomes clearer.
Other Revenue
FY 2026-27 - Decrease of $613,428 (18.0%)
FY 2027-28 - Increase of $63,128 (2.3%)
Other Revenue encompasses a wide range of sources, including property sales, sponsorships,
donations, and reimbursements. Due to the variable nature of these revenues, Staff budgets
only known payments and recurring items, incorporating adjustments as additional revenues
are received.
Both fiscal years include reimbursements for work performed at Camp Parks through the
Intergovernmental Support Agreement, reimbursable work for Dublin San Ramon Services
District, and PCS sponsorships and contributions. The FY 2026–27 projection is in line with the
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FY 2025-26 Adopted Budget, reflecting a year-over-year increase of $150,000. The decrease
relative to the FY 2025-26 Amended Budget is attributable to a mid -year budget adjustment
that included $749,000 in one-time tax credit revenue. The 10-Year Forecast assumes 3.0
percent annual growth, consistent with the recurring and stable nature of the revenue sources
budgeted in this category.
Expenditures
Personnel Costs
FY 2026-27 - Increase of $705,721 (4.2%)
FY 2027-28 - Increase of $959,015 (5.5%)
The projected increases reflect the net impact of the following:
Addition of an Environmental Coordinator in Public Works to support long-term
sustainability goals and ensure compliance with local and State mandates
Addition of a Maintenance Coordinator in Public Works to develop and implement an
asset management plan and provide contractor oversight
Addition of a Recreation Supervisor in PCS, replacing a part-time Office Assistant II, to
oversee day-to-day operations of the Dublin Arts Center in advance of its opening
Flat seasonal staffing costs in FY 2026-27, with a slight increase projected in FY 2027-
28
Cost-of-living adjustment of 1.7 percent and merit pay of 3.0 percent for full-time
personnel in FY 2026-27
Cost-of-living adjustment of 3.5 percent and merit pay of 3.0 percent for full-time
personnel in FY 2027-28
Looking ahead, the 10-Year Forecast assumes 6.5 percent annual growth, based on the
maximum increases outlined in the employment agreement between the City and Staff. This
includes a cost-of-living adjustment of up to 3.5 percent and merit pay of up to 3.0 percent
annually. The forecast does not assume the addition of new positions.
Benefits
FY 2026-27 - Increase of $647,566 (9.7%)
FY 2027-28 - Increase of $423,489 (5.8%)
The projected increases in benefit costs are driven by higher CalPERS retirement contributions
and health insurance premiums. The 10-Year Forecast assumes a 5.0 percent annual growth
for both retirement and health care costs.
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Services and Supplies
FY 2026-27 - Decrease of $951,144 (11.4%)
FY 2027-28 - Increase of $197,694 (2.7%)
The projected increases in Services and Supplies are primarily driven by higher insurance
premiums through PLAN Joint Powers Authority (PLAN JPA), the City’s insurance pool, and
the addition of the City’s self-funded workers’ compensation program. Rising insurance costs
have been a recurring trend statewide, and Dublin’s experience is consistent with that of other
California municipalities. Liability insurance through PLAN JPA is projected to increase
approximately $400,000 (15.0 percent) in FY 2026 -27 and $360,000 (11.0 percent) in FY
2027-28. The FY 2026-27 rates remain preliminary but are not expected to shift significantly,
while the FY 2027-28 figures are based on PLAN JPA estimates and should be considered a
placeholder pending more current information.
FY 2026-27 will mark the first year the new workers’ compensation program is reflected in the
budget. As the program launched January 1, 2026, the FY 2026 -27 budget includes only six
months of excess insurance costs to align the program with the fiscal year. The full cost
beginning in FY 2027-28 is projected at approximately $140,000 annually.
Additionally, in FY 2026–27, the City will implement a budget realignment for liability insurance
costs associated with contracted Police and Fire services. These costs will be moved from
Services and Supplies to Contracted Services to more accurately reflect the nature of t he
expenditures and ensure consistent treatment of all third-party liability costs, resulting in a
reallocation of approximately $1,750,000 in FY 2026-27 and $2,000,000 in FY 2027-28.
Excluding insurance, Services and Supplies costs are flat in FY 2026-27, with FY 2027-28
reflecting a decrease attributable to one-time costs associated with the opening of the Dublin
Arts Center. The 10-Year Forecast assumes 2.0 percent annual growth overall, reflecting
insurance premiums growing at 6.0 to 8.0 percent annually, offset by non-insurance costs
remaining relatively flat.
Contract Services
FY 2026-27 - Increase of $7,709,519 (10.4%)
FY 2027-28 - Increase of $3,450,159 (4.2%)
Contract Services represents the City’s largest expenditure category, with projected increases
of 10.4 percent ($7,709,519) in FY 2026-27 and 4.2 percent ($3,450,159) in FY 2027-28.
These increases are primarily attributable to the revised maintenance agreement with MCE
Corporation, an 8.2 percent increase in the Fire Services agreement, and a projected 6.1
percent increase in the Police Services agreement. It should be noted that the final proposal
from the Alameda County Sheriff's Office for Police Services has not yet been received. Staff
anticipates the final proposal will be submitted in early May.
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Police services contract. The FY 2026-27 and 2027-28 budget amounts are
preliminary and reflect an assumed annual increase of 6.1 percent, based on the following
factors:
A 4.0 percent pay rate increase scheduled in October 2026 and October 2027, as
outlined in the Alameda County Sheriff’s Office labor Memorandum of Understanding
Addition of one Lieutenant position in FY 2026-27
Continued utilization of two retired annuitants to support the DARE program, fully
funded through opioid settlement funds
Continued staffing of the Behavioral Health Unit (three positions), funded as follows:
o FY 2026-27 - 50.0 percent American Rescue Plan Act (ARPA) Fund and 50.0
percent General Fund
o FY 2027-28 - Fully funded by the General Fund
Table 2. Police Services Contract Costs
* The American Rescue Plan Act (ARPA) Fund accounts for federal stimulus funds received by local governments
to aid COVID-19 recovery. This funding source is expected to be depleted by FY 2027-28.
** The Opioid Fund accounts for funds received by Dublin for participating in state settlements with opioid
manufacturers.
Fire services contract. The FY 2026-27 Fire Services budget increase is driven
primarily by a 9.4 percent increase in salary and benefit costs, comprising the following:
An 11.0 percent increase for unrepresented employees, resulting from a comprehensive
classification and compensation study conducted by Alameda County Fire
A 3.4 percent pay rate increase for Safety members in January 2026
A 4.0 percent pay rate increase for Safety members in January 2027
An 11.2 percent increase in CalPERS retirement costs, reflecting higher wages and an
increased CalPERS retirement rate
A 5.6 percent increase in projected health care premium costs
No additional staffing in either fiscal year
Additional cost increases reflect a 6.6 percent increase in Services and Supplies, attributable
to higher dispatch costs and uniform and personal protective equipment costs as required by
Occupational Safety and Health Administration.
The FY 2027-28 budget, as provided by Alameda County Fire, reflects a projected increase of
4.7 percent, driven primarily by staffing and estimated benefit cost increases.
The City’s Other Post-Employment Benefits (OPEB) trust for Fire retiree health benefits
remains super funded due to prior-year contributions. As a result, OPEB costs will be paid from
the trust, generating General Fund savings of approximately $691,000 in FY 2026-27 and
FY Total
Contract $
Increase
$
Increase
%
General
Fund Share
ARPA
Fund Share*
Opioid
Fund Share**
25-26 $29,040,073 $27,894,024 $990,831 $155,218
26-27 $30,827,665 $1,787,592 6.16% $30,317,665 $350,000 $160,000
27-28 $32,675,725 $1,848,060 5.99% $32,505,725 $170,000
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$732,000 in FY 2027-28.
Table 3. Fire Services Contract Costs
* The Emergency Medical Services (EMS) Fund accounts for excise taxes that fund the cost of providing
emergency medical services (e.g., paramedic services).
** The Internal Service Fund (ISF) accounts for the purchase of replacement vehicles and equipment.
MCE maintenance contract. The FY 2026-27 maintenance services budget increase is
attributable to the following primary factors:
Addition of eight City assets requiring maintenance, including the Dublin Arts Center,
Wallis Ranch Park, Iron Horse Nature Park and Open Space, four new medians (two
each on Fallon Road and Central Parkway), and Forest Park
Increased maintenance requirements associated with new Municipal Regional
Stormwater Permit obligations across more than 30 Green Stormwater Infrastructure
(GSI) facilities, including basins and bioretention areas
Expansion of preventative maintenance efforts across City facilities and infrastructure ,
consistent with the City’s Strategic Plan emphasis on proactive asset management and
long-term infrastructure reliability
Addition of a new MCE Management Analyst position to support the operational side of
maintenance services, including the development and implementation of a
comprehensive asset management program
A CPI adjustment of 3.0 percent
The proposed FY 2027-28 budget increase is primarily driven by CPI adjustments and the
addition of full-year maintenance funding for three parks and one GSI facility anticipated to
open late in FY 2026-27. These include Francis Ranch north (Poppy Meadow) and south (Wild
Wind) parks, Dublin Centre Park, and the GSI facility at the Iron Horse Trail south of Amador
Valley Boulevard.
Table 4. MCE Maintenance Services Contract Costs
FY Total
Contract $
Increase
$
Increase
%
General
Fund Share
Assessment
District
Funds
Share
Special
Revenue
Funds / Other
Share
25-26 $11,915,407 $9,891,345 $746,240 $1,277,822
26-27 $13,302,388 $1,386,981 11.64% $11,874,760 $451,218 $976,409
27-28 $13,840,193 $537,805 4.04% $12,372,730 $464,751 $1,002,712
Other contract services include Library Services, Crossing Guards, City Attorney, and Animal
Services, as well as operating contracts for PCS instructors and programs, non-MCE street
FY Total
Contract $
Increase
$
Increase
%
General
Fund Share
EMS
Fund
Share*
ISF Share**
25-26 $19,643,710 $19,167,393 $277,600 $198,717
26-27 $21,260,617 $1,616,907 8.23% $20,948,806 $286,320 $25,491
27-28 $22,266,514 $1,005,897 4.73% $21,975,878 $290,636 $0
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maintenance, and finance and administration consulting.
The City was recently notified that the City of Livermore will no longer utilize Alameda
County for Animal Control and Shelter services. As the cost of these services is shared
among participating agencies, the City’s costs are expected to increase, though the
amount is not yet known. Staff will continue to work with the County and will bring
forward any recommended budget adjustments during the budget adoption in June.
The 10-Year Forecast assumes 6.0 percent annual growth for non-development-related
contracts, consistent with historical contract cost averages over the past decade.
Development-related contracts are projected to remain flat in Years 3 and 4, followed by a
steady decline in Years 5 through 10, based on current development project projections and
consistent with projected Development revenue.
Internal Services Fund Charges
FY 2026-27 - Increase of $581,790 (9.9%)
FY 2027-28 - Increase of $646,764 (10.0%)
Internal Services Fund (ISF) Charges represent costs allocated to City departments for
Information Technology (IT) operations and the replacement of City facilities, vehicles, and
equipment. The projected increases in both fiscal years are primarily driven by higher IT
operating costs and increased contributions to the City’s replacement funds.
Technology-related costs are funded through the IT Fund and allocated to departments based
on service usage and equipment assignments. These costs have risen steadily over the past
five years as the City continues to expand its technological capabilities. Contributions to
replacement funds have similarly increased to ensure adequate resources are set aside for
future capital needs as the City’s infrastructure continues to age.
Looking ahead, the 10-Year Forecast assumes 10.0 percent annual growth. However, th is
assumption may be revisited as Staff completes a comprehensive asset inventory currently
underway. Once finalized, any identified funding deficiencies may necessitate adjustments to
annual ISF contributions to ensure sufficient resources are available f or future replacements.
Transfers Out
The FY 2026-27 Budget includes transfers out of $2,000,000 to the ISF - Facilities for
preventive maintenance and $5,900,000 to capital improvement projects. Of the amount for
capital projects, $2,800,000 comes from Committed/Assigned Reserves and $3,100,000 from
Unassigned Reserves. The FY 2027-28 Budget includes another $2,000,000 to the ISF -
Facilities for preventive maintenance, as well as $6,350,000 to CIP projects. Of the amount for
capital projects, $4,500,000 comes from Committed / Assigned reserves and $1,850,000 from
Unassigned Reserves. Capital projects funded by the General Fund are shown in Attachment
3.
10-Year Forecast
The 10-Year General Fund Forecast serves as the foundation of the annual budget process in
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terms of guiding the City’s use of resources now to prepare for the future. Staff continues to
monitor ongoing revenue sources that fund ongoing costs and how those impact the General
Fund over time.
While the General Fund operating budget is in appositive position in the two-year budget
period, incorporating the information from this budget cycle into the 10-Year Forecast shows a
projected
operating deficit starting in FY 2030-31, as illustrated in Table 5. This is one year earlier than
was discussed during last year’s budget presentation. It should be noted that Staff uses
conservative assumptions when projecting the City’s future revenue and expenditures, and
that a full recession scenario is not included in the 10-year period.
Table 5. 10-Year Forecast
STRATEGIC PLAN INITIATIVE:
The Preliminary General Fund budget reflects funding of the priorities established in the City’s
Two-Year Strategic Plan.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
The City Council Agenda was posted.
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ATTACHMENTS:
1) General Fund Summary
2) General Fund Reserves Summary
3) General Fund Transfers Out Summary
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GENERAL FUND SUMMARY
PRELIMINARY FY2026-27 / 2027-28
Actuals
2024-25
Adopted
2025-26
Amended
2025-26
Proposed
FY 2026-27
$ Change from
Amended
% Change from
Amended
Forecasted
FY 2027-28
$ Change from
Proposed
% Change from
Proposed
Revenues
Property Tax 63,838,672 66,105,654 66,105,654 68,090,179 1,984,525 3.0%71,504,994 3,414,815 5.0%
Sales Tax 29,172,420 27,574,345 27,574,345 27,932,981 358,636 1.3%28,771,672 838,691 3.0%
Sales Tax Reimbursements (350,000) (375,000) (375,000) (50,000) 325,000 -86.7%(50,000)0 0.0%
Development Revenue 10,378,283 10,428,265 9,929,921 10,153,389 223,468 2.3%8,699,178 (1,454,211) -14.3%
Transient Occupancy Tax 1,324,612 1,400,000 1,400,000 1,400,000 0 0.0%1,400,000 0 0.0%
Other Taxes 7,531,724 7,362,250 7,362,250 7,544,795 182,545 2.5%7,730,775 185,980 2.5%
Licenses & Permits 332,607 124,400 200,000 223,400 23,400 11.7%223,400 0 0.0%
Fines & Penalties 53,168 67,400 67,400 67,400 0 0.0%67,400 0 0.0%
Interest Earnings 11,163,695 7,596,400 10,596,400 7,620,000 (2,976,400) -28.1%6,324,600 (1,295,400) -17.0%
Rentals and Leases 2,159,045 2,271,676 2,187,698 2,490,743 303,045 13.9%2,551,243 60,500 2.4%
Intergovernmental 540,580 300,000 300,000 330,000 30,000 10.0%330,000 0 0.0%
Charges for Services 8,669,970 7,714,813 7,048,543 7,880,537 831,994 11.8%8,120,994 240,458 3.1%
Other Revenue 3,407,448 2,666,640 3,415,883 2,802,455 (613,428) -18.0%2,865,583 63,128 2.3%
Subtotal Revenues - Operating $138,222,222 $133,236,842 $135,813,093 $136,485,879 $672,785 0.5%$138,539,839 $2,053,961 1.5%
Transfers In $162,885 $136,015 $136,015 $138,735 $2,720 2.0%$141,510 $2,775 2.0%
CIP Reimbursement Payments $2,152,018
Unrealized Gains/Losses/Adjustments 9,181,038
Total Revenues $149,718,163 $133,372,857 $135,949,108 $136,624,614 $675,505 0.5%$138,681,349 $2,056,736 1.5%
Expenditures
Salaries & Wages $14,045,766 $16,863,696 16,863,696 17,569,417 $705,721 4.2%18,528,432 $959,015 5.5%
Benefits 5,539,519 6,698,988 6,698,988 7,346,554 647,566 9.7%7,770,043 423,489 5.8%
Services & Supplies 6,393,224 8,083,119 8,371,769 7,420,625 (951,144) -11.4%7,618,319 197,694 2.7%
Internal Service Fund Charges 5,475,186 5,885,854 5,885,854 6,467,644 581,790 9.9%7,114,408 646,764 10.0%
Utilities 3,120,469 4,042,135 4,042,135 4,118,985 76,850 1.9%4,341,885 222,900 5.4%
Contracted Services 65,851,624 72,914,991 73,778,350 81,487,868 7,709,519 10.4%84,938,027 3,450,159 4.2%
Capital Outlay 233,989 388,416 848,029 302,956 (545,073) -64.3%309,929 6,973 2.3%
Debt Service Payment 1,334,650 1,331,250 1,331,250 1,331,850 600 0.0%1,331,250 (600) 0.0%
Contingency & Miscellaneous 13,491 224,000 224,000 224,420 420 0.2%224,852 432 0.2%
Subtotal Expenditures - Operating $102,007,918 $116,432,450 $118,044,071 $126,270,319 $8,226,248 7.0%$132,177,145 $5,906,826 4.7%
Operating Impact (REV-EXP)$36,214,304 $16,804,393 $17,769,022 $10,215,559 ($7,553,463) -43%$6,362,694 ($3,852,866) -37.7%
Transfer Outs & Contributions to Other Funds
Transfers Out (CIPs) - Com./Assig. Reserve 5,460,001 10,900,000 41,996,947 2,800,000 (39,196,947) -93.3%4,500,000 1,700,000 60.7%
Transfers Out (CIPs) - Undesignated 3,320,135 7,321,900 25,668,031 3,100,000 (22,568,031) -87.9%1,850,000 (1,250,000) -40.3%
Transfers Out (CIPs) - Reimbursable 1,888,264 -
Contribution to ISF & Other 2,000,000 2,000,000 2,000,000 2,000,000 - - 2,000,000 --
Subtotal - Transfers Out & Contributions $12,668,401 $20,221,900 $69,664,979 $7,900,000 ($61,764,979) -88.7%$8,350,000 $450,000 5.7%
Total Expenditures $114,676,319 $136,654,350 $187,709,050 $134,170,319 ($53,538,731) -28.5% $140,527,145 $6,356,826 4.7%
GF Impact (Include CIP & Transfers)$35,041,844 ($3,281,492) ($51,759,941) $2,454,294 $54,214,236 -104.7%($1,845,796) ($4,300,091) -175.2%
TOTAL GENERAL FUND BALANCE $325,474,796 $322,193,304 $273,714,854 $276,169,149 $274,323,353
Attachment 1
192
GENERAL FUND RESERVES SUMMARY
RESERVE DESCRIPTION
Actual Net Change Projected Net Change Projected Net Change Projected
Non-Spendable $40,123 $40,123 $40,123 $40,123
Prepaid Expenses 40,123 40,123 40,123 40,123
Restricted $16,242,645 $0 $16,242,645 $0 $16,242,645 $0 $16,242,645
Cemetery Endowment 60,000 60,000 60,000 60,000
Developer Contribution - Downtown 1,490,000 1,490,000 1,490,000 1,490,000
Developer Contr - Heritage Park 19,000 19,000 19,000 19,000
Developer Contr - Nature Park 60,000 60,000 60,000 60,000
Heritage Park Maintenance 750,000 750,000 750,000 750,000
Public Facilities Advance 11,605,916 11,605,916 11,605,916 11,605,916
Section 115 Trust - Pension 2,257,730 2,257,730 2,257,730 2,257,730
Committed $197,229,405 ($40,092,630) $157,136,775 ($2,800,000) $154,336,775 ($4,500,000) $149,836,775
Contigency Reserves
Asset Contingency 17,714,064 (5,000,000)12,714,064 12,714,064 12,714,064
Economic Stability 8,000,000 8,000,000 8,000,000 8,000,000
Fire Svcs Pension/OPEB 2,211,094 2,211,094 2,211,094 2,211,094
Parks and Streets Contingency 201,270 201,270 201,270 201,270
Pavement Management 2,000,000 2,000,000 2,000,000 2,000,000
Pension & OPEB 18,000,000 18,000,000 18,000,000 18,000,000
Public Safety Reserve 4,600,000 4,600,000 4,600,000 4,600,000
Service Continuity 3,150,000 3,150,000 3,150,000 3,150,000
Project Specific Reserves
Cultural Arts Center (CIP) - GI0120 1,402,815 (1,402,815)
Don Biddle Park (CIP) - PK0115 675,193 (675,193)
Downtown Public Improvement - ST0319 45,000,000 (358,990)44,641,010 44,641,010 44,641,010
Dublin Blvd Extension Advance ST0216 71,042,736 (20,228,823)50,813,913 50,813,913 50,813,913
Fallon Sports Park III Contingency - PK0119 51,462 (51,463)
HVAC Replace. & Civic Ctr Improv. (CIP) - GI0122 1,812,944 (807,520)1,005,424 1,005,424 1,005,424
Library Tenant Improvement - GI0521 1,000,000 1,000,000 1,000,000 1,000,000
Maintenance Facility (CIP) - GI0509 55,008 (55,007)
Village Pkwy Pavement Reconstruction - ST0323 20,312,819 (11,512,819)8,800,000 (2,800,000)6,000,000 (4,500,000)1,500,000
Assigned $59,336,248 ($21,134,232) $38,202,016 $820,000 $39,022,016 $730,000 $39,752,016
Accounting Adjustment Reserves
Accrued Leave 1,589,394 1,589,394 1,589,394 1,589,394
CIP Carryovers 17,186,131 (17,186,131)
Façade Improvement Grants 429,972 429,972 429,972 429,972
Operating Carryovers 1,690,898 (1,690,898)
Specific Use Reserves
Advance to Public Facility Fee 5,000,000 5,000,000 5,000,000 5,000,000
ARPA Revenue Replacement 990,187 990,187 990,187 990,187
Contribution to Public Facility Fee 10,000,000 10,000,000 10,000,000 10,000,000
Lease Revenue Bond Payoff 9,000,000 1,000,000 10,000,000 1,000,000 11,000,000 1,000,000 12,000,000
Relocate Parks Dept 500,000 (320,000)180,000 180,000 180,000
Utility Undergrounding 3,500,000 3,500,000 3,500,000 3,500,000
Non-Specific Use Reserves
Climate Action Plan 2,554,518 (956,152)1,598,366 (180,000)1,418,366 (270,000)1,148,366
Innovations & New Opportunity 3,316,206 (1,418,339)1,897,866 1,897,866 1,897,866
Municipal Regional Permit 885,422 (531,700)353,722 353,722 353,722
Non-Streets CIP Commitments 2,693,521 (31,011)2,662,510 2,662,510 2,662,510
Unassigned $52,626,374 $9,466,921 $62,093,295 $4,434,294 $66,527,590 $1,924,204 $68,451,793
Unassigned-Unrealized Gains 2,141,609 2,141,609 2,141,609 2,141,609
Unassigned (Available)50,484,765 59,951,686 64,385,981 66,310,184
TOTAL RESERVES $325,474,796 ($51,759,941) $273,714,854 $2,454,294 $276,169,149 ($1,845,796) $274,323,353
Attachment 2
193
GENERAL FUND TRANSFERS OUT
PRELIMINARY 2026-27/2027-28 BUDGET
(NEW) PROJECTS/ ITEMS NOTED
PROPOSED
2026-27
FORECAST
2027-28
Village Parkway Reconstruction 2,800,000$ 4,500,000$
Subtotal - Funded by Reserves 2,800,000$ 4,500,000$
1,750,000$ 1,850,000$
400,000
250,000
500,000
Annual Street Resurfacing
Emerald Glen Ball Field Renovation (New)
Gleason Drive Bridge Repair (New)
Restrooms Replacement
Village Parkway Reconstruction 200,000
Subtotal - Undesignated 3,100,000$ 1,850,000$
Subtotal Transfers Out to CIPs 5,900,000$ 6,350,000$
Other Contributions/Transfers Out
Transfer Out to ISF/Other 2,000,000 2,000,000
Project Description
Attachment 3
194
Preliminary General Fund
Fiscal Year (FY)2026-
27/2027-28 Budget
April 21, 2026
195
General Fund Summary
Revenue $136,485,879 $138,539,839
Expenditures ($126,270,319)($132,177,145)
Transfers In $138,735 $141,510
Contributions to ISF ($2,000,000)($2,000,000)
Transfers Out -CIP ($5,900,000)($6,350,000)
196
General Fund Revenue
•Total General Fund Revenue
•FY 2026-27 +$672K (0.5%)
•FY 2027-28 +$2.05M (1.5%)
•Property Tax +$1.98M (3.0%) / +$3.41M (5.0%)
•2.0% CPI adjustment
•New construction & change in ownership
•Year 1 = 3.3% assessed value growth
•1% delinquency rate
197
General Fund Revenue, 2
•Property Tax (continued)
•Years 2-5 = 5.0% annual growth
•Years 6-10 = 2.5% annual growth
•Sales Tax +$358K (1.3%) / +$838K (3.0%)
•Forecast recently revised down
•Softness in consumer spending
•Higher prices
•Broader economic uncertainty
•Auto sector significant impact
•40% of Sales Tax base
198
General Fund Revenue, 3
•Sales Tax (continued)
Sales Tax Projections
•Increase in both FY 2026-27 and 2027-28
•Years 3 and 4 = 3.0% annual growth
•Years 5 –10 = 2.5% annual growth
$28,316,873 $28,665,605 $29,587,570
$27,921,866 $27,932,981 $28,771,672
199
General Fund Revenue, 4
•Development Revenue +$223K (2.3%) / -$1.45M (14.3%)
•Timing of development projects
•Revenues and expenditures timing not aligned
•Service Continuity Reserve -$3.15M
•Years 3 and 4 = flat
•Years 5-10 = steady declines
200
General Fund Revenue, 5
•Other Taxes +$182K (2.5%) / +$186K (2.5%)
•Increase in franchise fees (garbage, gas, and electric)
•Decrease in cable franchise fees
•Property Transfer Tax = 10 year low
•10 Year Forecast = 3.0% annual growth
•Charges for Services +$831K (11.8%) / +$240K (3.1%)
•Increases
•Opening of the Dublin Arts Center (partial year)
•Addition of a ninth after-school program site
201
General Fund Revenue, 6
•Charges for Services (continued)
•The Wave fee adjustment
•Addition of new Special Event programming, including the Night Market and
Community Garage Sale
•Decreases
•Lower than projected attendance in the Jr. Warriors program
•Loss of major contract vendor (Skyhawks)
•Reduced Preschool enrollment
•Garbage Admin Fee = 5% increase
•Santa Rita Jail Reimbursement = Flat
•10 Year Forecast = 3.0% annual growth
202
General Fund Revenue, 7
•Interest -$2.97M (28.1%) / -$1.29M (17.0%)
•Conservative approach
•Interest rate cuts & General Fund Capital Improvement Program expenditures
•Years 3 and 4 = flat
•Years 5 -10 = annual decline
•Rents & Leases +$303K (13.9%) / +$60K (2.4%)
•Strong demand for City rental spaces
•Dublin Arts Center opening
•Updated grass field fees not included in Budget, effective January 1, 2027
•10 Year Forecast = 3.0% annual growth
203
General Fund Revenue, 8
•Other Revenue -$613K (18.0%) / +$63K (12.3%)
•Reimbursable work
•Intergovernmental Support Agreement
•Parks and Community Services sponsorships/contributions
•One-Time revenues
•10 Year Forecast = 3.0% annual growth
204
General Fund Expenditures
Total General Fund Expenditures
•FY 2026-27 +$8.22M (7.0%)
•FY 2027-28 +$5.90M (4.7%)
•Personnel +$706K (4.2%) / +$959K (5.5%)
•Environmental Coordinator –Public Works
•Sustainability goals
•State/local mandates
•Maintenance Coordinator –Public Works
•Asset management plan
205
General Fund Expenditures, 2
•Personnel (Continued)
•Recreation Supervisor –Dublin Arts Center
•Replacing part-time Office Assistant
•Seasonal
•FY 2026-27 = flat
•FY 2027-28 = slight increase
•Cost of Living/Merit
•FY 2026-27 = 1.7%/3.0%
•FY 2027-28 = 3.5%/3.0%
•10 Year Forecast = 6.5% annual growth
206
General Fund Expenditures, 3
•Benefits +$647K (9.7%) / +$423K (5.8%)
•CalPERS retirement increases
•PEPRA 75% vs Classic 25%
•Health premium increases
•10-Year Forecast = 5% annual growth
•Services & Supplies -$951k (11.4%) / +$197K (2.7%)
•Increase in insurance premiums
•Liability insurance increase
•FY 2026-27 = 15%
•FY 2027-28 = 11%
207
General Fund Expenditures, 4
•Services & Supplies (Continued)
•Self-funded workers’ compensation program
•$140K annual cost (excess insurance)
•$25K annual workers comp claims
•Non-insurance costs
•FY 2026-27 = flat
•FY 2027-28 = decrease
•Budget realignment of third-party liability costs
•Shift from Services & Supplies to Contract Services
•FY 2026-27 = $1.75M
•FY 2027-28 = $2.00M
208
General Fund Expenditures, 5
•Services & Supplies (Continued)
•10-Year Forecast = 2.0% annual growth
•Insurance growth rate = 6.0% to 8.0% annually
•Non-insurance growth rate = 0.0%
•Contract Services +$7.71M (10.4%) / +$3.45M (4.2%)
•Police Services
•FY 2026-27 = 6.1% increase
•FY 2027-28 = 6.0% increase
•Addition of one Lieutenant position in FY 2026-27
•4.0% pay rate increase in October 2026 and October 2027
209
General Fund Expenditures, 6
•Contract Services –Police Services (Continued)
•Two retired annuitants to support the DARE program
•Fully funded from opioid settlement funds
•Continued staffing of Behavioral Health Unit three positions
•FY 2026-27 Funded = 50% ARPA & 50% General Fund
•American Rescue Plan Act (ARPA) will be depleted in FY 2026-27
•FY 2027-28 Funded = 100% General Fund
•Fire Services
•FY 2026-27 = 8.2% increase
•FY 2027-28 = 4.7% increase
210
General Fund Expenditures, 7
•Contract Services –Fire Services (Continued)
•11.0% increase for unrepresented employees
•Safety members
•January 2026 = 3.4% increase
•January 2027 = 4.0% increase
•No additional staffing in either fiscal year
•Fire Other Post Employment Benefits (OPEB) trust is super funded
•Retiree Medical cost paid from OPEB trust
•FY 2026-27 = $691K savings
•FY 2027-28 = $732K savings
211
General Fund Expenditures, 8
•Contract Services (Continued)
•MCE maintenance contract
•FY 2026-27 = 11.6% increase
•FY 2027-28 = 4.0% increase
•Addition of eight City assets
•The Dublin Arts Center, Wallis Ranch Park, Iron Horse Nature Park and Open Space, four new medians (two each on Fallon Road and Central Parkway), and Forest Park
•Increased maintenance requirements at 30 Green Stormwater Infrastructure facilities
•Expansion of preventative maintenance efforts
•New MCE Management Analyst
212
General Fund Expenditures, 9
•Contract Services (Continued)
•Animal Services
•City of Livermore (exiting)
•Shared costs projected to increase (Unknown)
•Adjustments addressed at budget adoption
•Library Services = 1.3% increase
•City Attorney = No change
•10-Year Forecast = 6.0% annual growth (non-development contracts)
•Historical averages
•Development contracts
•Years 3 and 4 = flat
•Years 5 –10 = steady decline
213
General Fund Expenditures, 10
•Internal Services Fund Charges +$581K (9.9%) / +$646K (10.0%)
•IT Operating Budget
•Software/technology
•10-Year Forecast = 10% annual growth
•Asset inventory
214
Transfers Out
•Preventive Maintenance
•FY 2026-27 & 2027-28 = $2.00M
•CIP General Fund Reserves
•FY 2026-27 $2.80M
•FY 2027-28 $4.50M
•CIP General Fund Unassigned
•FY 2026-27 $3.10M
•Pavement = $1.75M
•FY 2027-28 $1.85M
•Pavement = $1.85M
215
Transfers Out, 2
Village Parkway Reconstruction 2,800,000 4,500,000
Annual Street Resurfacing 1,750,000 1,850,000
400,000
250,000
Restrooms Replacement 500,000
Village Parkway Reconstruction 200,000
Transfer Out to ISF 2,000,000 2,000,000
216
General Fund Reserves
•Operating Surplus
•FY 2026-27 = $10,215,559
•FY 2027-28 = $6,362,694
•Net Impact on Reserves
•FY 2026-27 = $2,454,294
•FY 2027-28 = ($1,845,796)
217
General Fund Reserves, 2
Reserve Category FY 2025-26 FY 2026-27 FY 2027-28
Non-Spendable/
Restricted
$16.3 $16.3 $16.3
Committed $157.1 $154.3 $149.8
Assigned $38.2 $39.0 $39.7
Unassigned
(Cashflow)
$59.9 $64.4 $66.3
Unrealized
Gains/(Losses)
$2.1 $2.1 $2.1
218
10-Year Forecast
•Projected Operating Deficit beginning in FY 2030-31
•One year earlier than previously discussed
•Does not include additional revenue from the Transient
Occupancy Tax (TOT) measure
•Staff uses conservative assumptions
•10-year period does not include a full recession
219
10-Year Forecast, 2
220
Recommendations
•Receive the report
•Provide direction on other items or information to include in the FY
2026-27 / 2027-28 Budget
•Budget adoption scheduled for June 2, 2026
•Questions?
221