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Home My WebLink AboutBUDGET WORKSHOP 2026-27 (ITEM 10)FY 2026-2027 Budget Workshop YEAR 2 OF BIENNIAL BUDGET May 5, 2026 Definitions Example Budget Scenarios 3 Projected Revenue Details 4. Projected Expense Details G Capital, Improvement Program (CIP) Overview 10-Year Fiscal SustainabiLity Strategy Recurring (Operating) and Nonrecurring (One -Time) Revenues and Expenses ❖ Structurally Balanced Budget vs Total, Budget General Fund, General, Fund Reserves, Legacy Fund and Legacy Fund Balance •'• Capital, Improvement Program (CIP) 1. Increase On -Going General Fund Revenues: Advance development of City -owned property to generate additional tax revenues Decrease On -Going General Fund expenses: Pension paydown analysis and policy and other efficiencies Reduce use of One -Time Revenues to Fund: General Fund Reserves (range: 20%-15% reserve level) b) Pension Paydown c) Recurring operations and programs Recurring Revenue Sources Operating: • Property Tax • Sales Tax • Other Taxes • Fees, Charges, and Earnings Nonrecurring Revenue Sources One -Time: • External Sources (Land Sale and Grants) • Internal Sources (Transfers & Reserves) Recurring Expenditures Operating: • Operating Departments • Public Safety • Programs and Services Nonrecurring Expenditures One -Time: • Citywide Programs and Services • Services & Equipment FAA Structurally Balanced Budget Definition Recurring Revenues iN Recurring Expenses Structurally Balanced Recurring Revenues & Expenses Total Budget Definition Nonrecurring Revenues & Expenses Total Budget General Fund Definition Reserve Level Target 20%-15% �N W( I Primary account for day-to-day operations, 0 programs, initiatives and general services Legacy Fund Definition Funds 0 generated from sale of Primary funding City owned source for build out land in of infrastructure and Legacy parks to facilitate development within Tustin Legacy 10 �N Capital Improvement Project (CIP) Definition O0 Aligns Identifies schedules projects with and budgets for available public infrastructure funding projects, major sources equipment purchases, and significant facility renovations 11 lN Revenues $105AM Expenses ($106.2M) Surplus/(Deficit) ($0.8M) Nonrecurring (one-time) Total Budget ReNJvenues/Transfers/Reserves Revenues/Transfers/Reserves $17.5M 6 $122.9M Expenses Expenses ($16.7M) 1 9 ($122.9M) I Surplus/(Deficit) Balanced Budget y $0.8M $OM 1 General Fund - $2.6M • Services and Equipment ($2.6M) 1 Legacy Fund - $14.1M • Police Capital/IT Projects ($3.3M) • Temporary Emergency Shelter ($2.1M) • Pension Paydown Payment ($7.7M) • General Plan Update ($1.0M) {new} General Fund • Reserve Level $25M or 24% Legacy Fund • Transfer Out of $14.1M General Fund - $5.7M • Temporary Emergency Shelter ($2.1M) • Services and Equipment ($2.6M) • General Plan Update ($1.OM) Legacy Fund - $11M • Police Capital/IT Projects ($3.3M) • Pension Paydown ($7.7M) Legacy Fund • Transfer out $11M General Fund • Reserve Level $22M or 21% FY 26-27 DRAFT Recurring Nonrecurring External Sources (Land Sale and Grants) - $2.2M Internal Sources (Transfers & Reserves) - $15.3M General Fund Recurring Revenues Sales Tax $38.7 37% Property Tax $29.6 Fees, Charges, and 28/ Earnings $30.7 O 29 � 16 ib-STK Fees, Charges, and Earnings z Other Taxes O J J Sales Tax Property Tax Total Recurring Rev. $86.4 $90.7 $94.6 $99.1 FY 22-23 FY 23-24 FY 24-25 FY 25-26 $105.4 FY 26-27 PROPOSED FY 26-27 DRAFT Recurring Nonrecurring Non -Departmental - $15.3M Services & Equipment - $1.4M General Fund Recurring Expenses PW $19.7 19% ComDev $6.6 6% FIN $2.3 2% Police $45.0 42 J CMOft,� $4.4 4% r P&R Non -Dept. $6.7 $7.0 6% 7% Non -Dept. P&R $97.2 $90.2 Fire $84.2 Police ice $76.2 o MPW z 0 ComDev J HR FIN CMO City Atty. City Council Total Recurring Exp. FY 22-23 FY 23-24 FY 24-25 FY 25-26 $106.2 FY 26-27 PROPOSED ■ Public Works Police Department ■ Parks & Recreation Human Resources Finance Community Development City Manager's Office Total FTE Count 331.5 314.5 319.5 333.5 338.5 2022-23 2023-24 2024-25 2025-26 2026-27 In millions Water FY 26-27 REQUESTED Storm Drain $2.0 $0.3 ��-ilities 3.6 i% Traffic $8.8 13% Capital Improvement Program NEW VS. ROLLOVER FY 26-27 CI P FY 26-27 CIP New Request 1 Rollover $26.5 A $41.4 23 i�UN In millions GF $3.8 6% Water Rates $0.9 1 % Pa 4% FY26-27 Draft Ifni=IZ Funding Sources: Gas Tax, Measure M2, SB1 Road Rehab, & AQM D Bonds $1.1 2% Funding Sources: CDBG, grants for Narks, transportation - related projects, etc. $16.0 $14.0 $13.7 Legacy Linear Park Between Armstrong and Warner $13.7 $12.0 Armstrong Avenue Pedestrian Bridge $6.2 $10.0 N-D South Infrastructure - Phase 2 Ln $5 0 Tustin Ranch Road Pedestrian Bridge - $8.0 $0.36 $6.2 SAMP - Sewer Feasibility $0.3 $6•0 $5.0 Cornerstone II Infrastructure $0.25 $4.0 $2.0 $0.36 $0.3 $0.25 Jamboree Rehab 1-5 and Portola $13.1 Annual Roadway Maintenance $3.5 Signal Synchronizations Various Locations $2.9 Main Street Improvements $2.8 First Street Multimodal $2 Old Town $1.7 Red Hill Rehab Sycamore and Bryan $0.6 $14.0 $12.0 $10.0 $8.0 0 $6.0 $4.0 $2.0 Active Transportation Master Plan and Zero Vision Plan $0.43 $- $3.5 $2.9 $2.8 $2.0 $1.7 $0.60 $0.43 $0.36 $0.25 0.20 ®®$ $0.05 $0.05 Heideman School Park $7.4 Annual Park Maintenance $0.35 Tustin Legacy Park $0.32 Camino Real Park Shelter $0.09 $8.0 $7.4 $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.35 $0.3 $0.09 PD Locker Room $1.9 Annual Building Maintenance $1.4 Family & Youth Center Playground $0.3 $2.0 $1.9 $1.8 $1.6 $1.4 $1.2 $1.0 $0.8 $0.6 $0.4 $0.2 $1.4 $0.3 Well Rehab $1.7 (N 17th Street Electrical o Replacement $0.24 Golden State Water Interconnection $0.07 $1.8 $1.6 $1.4 $1.2 $1.0 M M $0.2 $1.7 $0.24 $0.07 011 01 01 $20 $0 Total Invoiced $104M $16 1 $4 $2 $0 W tih ti�O ti� ti00 ti°� ti� titi �titi ti�� tio� ,yob ,yti,-� �tio �ti� tip` tip` tio` �o` �y` ��` ��` ��` ��` �o` by do Normal Cost Required UAL Add't UAL PARS Trust /OOOOO—=MWO= N UJII Remembering what connects us. Thank You! y I