City Manager Alex Henderson presented a mid‑year revenue update showing most major revenue streams tracking at or above the budgeted projection. Henderson said Bradley‑Burns sales tax receipts and Measure E (local 1 percent public safety tax) were generally higher than prior years’ levels, fuel sales remain a large portion of sales tax, and permit revenues are trending upward. The city had received roughly half of the fiscal year’s property tax and motor vehicle in‑lieu allocations and expects a second distribution from the county in May.

Henderson cautioned that national and regional economic uncertainty could temper consumer demand in 2025, but current forecasts at the time of the meeting trended slightly positive compared with earlier projections. Staff will continue to monitor receipts and update the council as final quarterly sales tax numbers are posted.

Henderson also presented the annual CalPERS update. He said CalPERS’ funded status improved to roughly 75% in fiscal year 2024, with a current discount rate (assumed investment return) of 6.8 percent. He noted that actuarial returns had varied — including a loss in fiscal year 2022 and a large return in fiscal year 2024 — but long‑term returns remain slightly below the discount rate. That dynamic affects the city’s unfunded actuarial liability (UAL) payments.

Kingsburg pays normal costs for active employees and a separate UAL payment. Henderson said the city has historically prepaid the UAL each July (saving roughly one month of interest) and has pushed a policy of allocating a portion of surplus revenues into a UAL fund to permit discretionary payments. The city’s projected UAL payment for fiscal year 2026 is higher than the current year (the staff presentation cited an estimated increase of about $124,000 versus the current year), and a projected UAL payment figure of about $866,000 for the next year was noted in the presentation.

Henderson said staff will continue to evaluate opportunities to reduce long‑term pension burden, including discretionary payments when feasible.