Operating expenses for business-type activities increased by $1.84 million from $14.33 million to $16.17 million. The majority of the increase is related to the increase in maintenance and operations costs for the Parkview Office Complex of $1.99 million compared to prior year.
On page 43, the governmental funds balance sheet is shown. The combined fund balance of $350.73 million increased $4.43 million from $346.30 million. This total includes the General Fund fund balance of $120.71 million, which decreased by $5.65 million from the prior year. The City's General Fund fund balance has a non-spendable balance of $2.67 million, committed balance of $63.32 million, assigned balance of $18.34 million, and $36.38 million of unassigned fund balance. The increase in the General Fund's fund balance was due to increases in sales tax and cash and investments balances coupled with reductions in accounts payable liabilities from prior year. Other major fund balance changes are noted below:
The Prop A Fire Tax Special Revenue Fund: The fund balance increased by $4.88 million.
The Housing Asset Fund: The fund had an increase of $1.83 million, mainly due to increases in its Loan asset balances during the fiscal year.
The Housing Authority Fund: The fund balance had a slight increase of $1.27 million.
Restricted Capital Project Fund: The fund balance decreased $3.15 million from $47.23 million in 2024 to
$44.36 million in 2025.
The remaining increase of $4.97 million is spread across multiple non-major funds.
More detailed information about the combined fund balance reserves is presented in Note 16 to the financial statements.
Based upon recommendations from the staff, the City Council revised the budget several times during the year. Adjustments were made on a monthly basis as City staff requested additional appropriations to cover the cost of projects that either had change orders for additional work, or were underestimated. At mid-year, some adjustments were also requested to better meet departmental demands and adjust for any revenue fluctuations. At year-end, budgets were adjusted for unanticipated approved expenditures. All amendments that either increase or decrease appropriations are approved by the City Council.
For the City's General Fund, the actual ending revenues of $96.80 million were $7.61 million more than the final budgeted revenues of $89.19 million. Sales and transient occupancy taxes continue to be the top two revenue generators for the City, totaling $55.26 million or 57.09 percent of the total General Fund actual revenues. The original budgeted taxes was $72.47 million compared to the final budget of $76.03 million, an increase of $3.56 million. The City increase in the final budget was related to better-than-expected increases in sales tax revenues from the passing of Measure G.
The General Fund actual ending expenditures of $102.20 million were $9.70 million less than the final budget of $111.90 million. There were changes in the original budget compared to the final budget during the year. The original expenditure budget was $83.06 million compared to the final budget of $111.90 million, a $28.84 million increase. During the year, the following represent the major changes between the original budget and the final budget: the City Clerk, Legal, Finance, Information Technology, Capital Projects, Traffic Safety, and Street Maintenance budgets were increased to accommodate new staff and expanded city services. The budget for transfers out was also increased by $19.86 million. These transfers were mainly to capital project funds to cover upcoming projects.