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: |
November 17, 2026 |
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Subject: |
Fiscal Year 2026-27 First Quarter Budget Update and Financial Performance Summary - period ending September 30, 2026 |
Recommendation:
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Receive and file the Fiscal Year 2026-27 First Quarter Budget Update and Financial Performance Summary for the period ending September 30, 2026.
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Background:
The attached Fiscal Year 2026-27 (FY27) Budget by Account Classification Report summarizes revenues and expenditures through the first quarter ending September 30, 2026. Year-to-date results are compared with the adopted and amended budgets and with prior-year activity for the same period.
Quarterly results should be interpreted in the context of cash-flow and transaction timing. Revenues are generally recorded when received and expenditures when processed, except for year-end accruals and other required accounting entries. Major revenues do not occur evenly throughout the year. Property taxes, for example, are received primarily in the second and fourth quarters, while capital, grant, debt-service, insurance, and other project-related activity may be concentrated in particular periods.
The FY27 amended budget also includes budget amendments and prior-year carryforwards for capital and other multi-year projects. These amounts reflect previously authorized resources for ongoing activities and do not represent new spending approved through this report. Accordingly, the citywide amended budget includes one-time and project funding and should not be viewed as an ongoing operating budget.
As of the close of Q1, the City’s overall financial performance remains consistent with budget projections, with both revenues and expenditures tracking within expected ranges. The attached Budget Performance Summary provides a high-level overview of key financial metrics and fund activity.
The Amended Budget includes funding carried forward from Fiscal Year 2025-26 for projects and contracts approved in prior years but not yet completed or fully paid. This is common for large construction projects, infrastructure improvements, and other projects that take more than one year to complete.
Rather than requiring these projects and contracts to be funded again each year, the City carries forward the remaining budget authority so work can continue. These amounts are generally supported by funding received in prior years that remains available in the City's fund balances.
As a result, the Amended Budget reflects both current-year spending plans and funding for projects and commitments from previous years. This makes the Amended Budget appear significantly higher than the Adopted Budget, but does not mean the City is relying on additional current-year revenues to fund these previously approved commitments.
Fiscal Impact:
There is no fiscal impact associated with this report.
Documents Attached:
1. Attachment 1 - Fiscal Year 2026-27 Q1 Budget by Account Classification Report
2. Attachment 2 - Fiscal Year 2026-27 Q1 Budget Performance Summary