City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Matthew Boring, Finance Director |
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Prepared by: |
Lana McBroom, Budget Manager |
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Date: |
February 3, 2026 |
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Subject: |
Fiscal Year 2025-26 Mid-Year Budget Update and Financial Performance Summary - period ending December 31, 2025 |
Recommendation:
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Adopt a resolution approving amendments to Fiscal Year 2025-26 Mid-Year Budget; and receive and file Fiscal Year 2025-26 Second Quarter Budget Update and Financial Performance Summary for the period ending December 31, 2025.
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Background:
The City’s Fiscal Year 2025-26 (FY26) Budget was adopted on June 17, 2025 (R2025-130). In alignment with industry best practices, staff is presenting a combined Mid-Year Budget Update and Second Quarter (Q2) Financial Performance Summary for Council review and consideration.
This combined report provides a comprehensive fiscal snapshot at the midpoint of the fiscal year, aligning proposed budget amendments with year-to-date financial performance through December 31, 2025. Mid-year adjustments are recommended to reflect updated revenue projections, expenditure trends, and operational needs identified during the first half of the fiscal year. Detailed amendments are provided in the Fiscal Impact section and attached exhibits.
Financial results are presented on a cash-basis budget format, under which revenues and expenditures do not occur evenly throughout the year due to the timing of major tax receipts, capital spending, and contractual costs. The amended FY26 budget also incorporates previously approved capital carryforwards tied to specific funding sources, which represent ongoing commitments rather than new spending.
As of Q2, citywide revenues and expenditures represent 35% and 32% of the amended annual budget, respectively. While mid-year performance typically trends closer to 50%, current pacing reflects timing differences and does not indicate material fiscal stress. The City’s financial outlook remains stable, and staff will continue to monitor trends and return to Council with updates or recommended actions as needed.
Fiscal Impact:
Budget staff recommend mid-year adjustments totaling $4.16 million in revenues and $3.07 million in expenditures. The adjustments align appropriations with updated projections and project schedules, maintain a positive fiscal position at mid-year, and preserve flexibility to advance key capital and operational priorities through the remainder of FY26.
Documents Attached:
1. Attachment 1 - Resolution
2. Attachment 2 - Exhibit “A” - General Ledger Amendment Detail
3. Attachment 3 - Fiscal Year 2025-26 Q2 Budget Performance Summary
4. Attachment 4 - Fiscal Year 2025-26 Q2 Budget by Account Classification Report
5. Attachment 5 - Fiscal Year 2025-26 Mid-Year Fund Balance Projections by Fund
6. Attachment 6 - Presentation