HomeMy WebLinkAboutITEM 8 - FY YEAR 2026/27 BUDGETFY 2026=2027
Budget Adoption
YEAR 2 OF BIENNIAL BUDGET
June 2, 2026
00
40LJS I
10=Year Fiscal Sustainability Strategy
1. Increase
On -Going General
Fund Revenues
Advance development of
City -owned property to
generate additional tax
revenue
FY 26-27
YEAR 2 OF 10
3. Reduce
Use of One -Time
Revenues to Fund
• General Fund Reserves
(range: 15%-20% reserve level)
• Pension Paydown
• Recurring operations and
programs
2
Summary General Fund Budget
REVENUE $123M
Recurring
$105.4M
M
Non -Recurring
$17.5M
EXPENSE $123M
3
BALANCED
I BUDGET
Non -Recurring Funding
• Temporary Emergency Shelter ($2.2M)
• Services and Equipment ($2.6M)
• General Plan Update ($1.OM)
• Police Capital/IT Projects ($3.3M)
• Required Pension Paydown Payment ($7.7M)
$16m8M
General Fund
• Reserve Level $22M or 21
E
$105.
(86%)
General Fund Total Revenue
FY26=27
0
$17.5
(14%)
5
Recurring O Non -Recurring
$2.2 External Sources
(Land Sale and Grants)
$15.3 Internal Sources
(Transfers &Reserves)
General Fund Recurring Revenue
FY 26=27
OSales Tax
OFees, Charges, and Earnings
OProperty Tax
• Other Taxes
L
Tustin Sales Tax
(Millions)
Sales Tax Generators
General Consumer Goods 23.2%
Autos and Transportation 25.9% 'T
State and County Pools 16.5% A
X
Business and Industry 11.6%
Others 22.8%
Sales Tax History
$35.4 $35.4
$37.4
$37.0
22-23 23-24 24-25 25-26 26-27
Tustin Property Tax
Top Valuation Growth by Cause 25-26 vs 24-25
Total Growth 4.8%
Annual CPI adjustment 1.8%
Ownership transfer 1.9%
New -construction (non-residential) 0.2%
New construction (residential) 0.2%
Top Valuation Growth by Use 25-26 vs 24-25
Residential 5.4%
Commercial 4.4%
Industrial 3.5%
(Millions)
i
$24.6
Property Tax History
$26.3 $27.3
$28.5 $29.6
22-23 23-24 24-25 25-26 26-27
$106
(86%
General Fund Total Expense
FY26=27
0
$16.7
(14%)
Recurring O Non -Recurring
General Fund Recurring Expense
FY 26-27 Budget (Millions)
Police $45.0 (42%)
Public Works $19.7 (19%)
Fire $11.5 (11 %)
Non -Departmental $7.0 (7%)
Parks & Rec $6.7 (6%) -
Community Dev $6.6 (6%)
CMO $4.4 (4%)
Finance $2.3 (2%)
Human Resources $2.0 (2%)
City Attorney $0.9 (1 %)
City Council $0.1 (0%)
10
General Fund Recurring Expense History
(Millions)
0 Operation
$76.2
0 Personnel
43%
57%
22-23
$84.2
23-24
$90.2
43%
24-25
$97.2
25-26
$106.2
41%
59%
26-27
Authorized Positions
0 Public Safety
0 Non -Public Safety
314.5
319.5 331.5 333.5 338.5
100
214.5
22-23
12
102
217.5
23-24
105
226.5
24-25
105
228.5
25-26
107
231.5
26-27
$67m9M
CIP
Capital. Improvement Program
$0.3
$3.6
13
Project Types
Millions
0 Legacy - 38%
0 Street - 28
Traffic - 13
0 Parks - 12%
W Facilities - 5%
0 Water - 3
0 Storm Drain - 1%
Capital. Improvement Program
New Vs. Rollover
Millions
0 FY 26-27 CIP Rollover
0 FY 26-27 CIP Request
$67m9M
CIP
14
$0.9
$3.8
Capital. Improvement Program
15
Funding Sources
Millions
0 Land Proceeds - 28%
0 Grants - 27%
0 Allocations - 19%
0 Develop Fees - 13%
$1.1 GF - 6%
0 Park Fees - 4%
Bonds - 2%
0 Water Rates - 1
Armstrong Pedestrian Bridge
CIP Legacy $25.9
(Millions)
Legacy Linear Park $13.7
Armstrong Pedestrian Bridge $6.2
Tustin Ranch Road Pedestrian Bridge
N-D South — Phase 2,
SAMP — Sewer Feasibility,
& Cornerstone II Infrastructure
Old Town
CIP Streets and Traffic $28
(Millions)
Jamboree Rehab 1-5 and Portola $13.1
Annual Roadway Maintenance
$3.5
Signal Synchronizations
$2 9
Various Locations
Main Street Improvements
$2.8
First Street Multimodal
$2.0
Old Town
$1.7
Ll
Other
$2.0
17
Heideman School Park
CIP Parks $8.2
(Millions)
Heideman School Park
Annual Park Maintenance,
Tustin Legacy Park,
& Camino Real Park Shelter
W
CIP Facilities $3.6
(Millions)
PD Locker Room $1.9
Annual Building $1.4
Maintenance
City Hall Maintenance Family & Youth
Center Playground $0.3
w
I Th Street Plant
CIP Water $2
(Millions)
Well Rehab $1.7
17t" Street Electrical
Replacement,
& Golden State Water $0.3
Interconnection
all
North Hangar Reimbursements
Total Invoiced
� $104nn
Paid to Date
=� $84m
� Outstanding Balance
$20m
21
$16
$14
b�
Pension Paydown Strategy ($m)
21 /22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 31 /32 32/33
Normal Cost Required UAL Additional UAL PARS Trust
22
THANK YOU!
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