City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Matthew Boring, Director of Finance |
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Prepared by: |
Lana McBroom, Budget Manager |
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Date: |
October 20, 2026 |
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Subject: |
Fiscal Year 2025-26 Fourth Quarter Budget Update and Financial Performance Summary - period ending June 30, 2026 |
Recommendation:
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Adopt a resolution approving Fiscal Year 2025-26 year-end budget adjustments; and receive and file Fiscal Year 2025-26 Fourth Quarter Budget Update and Financial Performance Summary for the period ending June 30, 2026.
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Background:
The attached Fiscal Year The Fiscal Year 2025-26 (FY26) Budget Performance Report presents City revenues and expenditures through June 30, 2026. Actual results are compared with the adopted budget, amended budget, and prior-year results for the same period.
The report includes accruals to recognize revenue earned and costs incurred during FY26, even when the related cash was not received or paid by June 30. All figures are preliminary, unaudited, and subject to change during the year-end closing and audit process.
The amended FY26 budget includes capital outlay and capital improvement appropriations carried forward from prior years. These amounts represent funding previously approved for projects that continued into FY26. They are supported by previously identified project resources and are not new ongoing operating costs.
Attachment 3 presents the complete Budget by Account Classification Report generated from the City’s financial system and includes all Fiscal Year 2025-26 activity recorded as of the date the report was generated for the year ended June 30, 2026. For transparency, the report includes noncash year-end accounting entries for depreciation, amortization, capital asset additions and disposals, asset transfers, and activity recorded in Fund 998, the General Fixed Asset Account Group.
These year-end accounting entries are required for financial reporting but were not included in the adopted or amended budget. Their inclusion materially affects citywide totals and budget-utilization percentages and may produce negative expenditure amounts or other unusual balances. These entries do not represent additional spending and do not require budget appropriations.
As reported in Attachment 3, citywide revenues totaled $339.2 million, or approximately 102% of the amended budget, while citywide expenditures totaled $217.7 million, or approximately 45% of budget. These totals include the noncash accounting entries described above, along with transfers and reimbursements between City funds. They should not be interpreted as consolidated operating results, available cash, or an ongoing operating surplus.
Revenue results included higher-than-budgeted investment earnings, property tax assessments, charges for services, other revenues, and financing sources. These results were partially offset by intergovernmental grants and transfers that were below budget. The expenditure percentage also reflects the timing of multi-year capital projects and related carryforward appropriations.
General Fund revenues totaled $82.9 million, or approximately 102% of budget, while expenditures totaled $86.4 million, or approximately 97% of budget. Expenditures exceeded revenues by approximately $3.5 million; however, the amended budget anticipated a difference of approximately $8.2 million. As a result, the General Fund performed approximately $4.7 million better than budget overall.
Fiscal Impact:
Approval of the accompanying resolution will authorize year-end budget adjustments necessary to align revenues and expenditures across City funds. There is no additional fiscal impact beyond the budget corrections reflected in the resolution.
Documents Attached:
1. Attachment 1 - Resolution
2. Attachment 2 - Exhibit “A” to Resolution
3. Attachment 3 - Fiscal Year 2025-26 Q4 Budget by Account Classification Report
4. Attachment 4 - Fiscal Year 2025-26 Q4 Budget Performance Summary