Millbrae plans for a balanced budget

“The budget is a dynamic document, it’s a plan,” he said. “We amend the budget a lot, especially with a lot of guidance from council, especially as we have better information and better data.” 

For the 2025-26 fiscal year, revenue and expenditures are expected to balance at $43.2 million each, Sung said. For the 2026-27 fiscal year, revenue and expenditures are also expected to balance at $43.4 million each. 

The city’s general fund is expected to accumulate a balance of $11.6 million at the end of the fiscal year, and by the end of the 2025-26 fiscal year, its reserves should go up to $6.5 million. 

For both the 2025-26 and 2026-27 fiscal years, property tax and assessments, hotel taxes and sales tax make up the bulk of the city’s revenue. Hotel tax is projected at $9.6 million for the 2025-26 year, a downturn from pre-pandemic levels, but is expected to make a modest recovery in the year following, Sung said. 

The city will also be receiving a one-time payment of $200,000 for a use agreement of an electronic outdoor billboard. 

On the expenditures side, fire and police costs are expected to increase by $1.3 million in the 2025-26 fiscal year and $1.1 million in the 2026-27 fiscal year to keep pace with increasing contract costs, Sung said. 

The City Council also heard a report on planned capital improvements projects, which are paid for via a separate fund — not the operating budget. Those projects will include $3.5 million for a Broadway water main repair and $1 million for El Camino Real landscape median improvements, among a bevy of other sewer, street and paving initiatives.