PRESS RELEASE FOR IMMEDIATE RELEASE October 30, 2026
FOR IMMEDIATE RELEASE
UPDATE ON THE CITY OF HOLLISTER'S FINANCES
HOLLISTER, California, October 30, 2026 — The City of Hollister has begun a comprehensive review of its financial condition, budget assumptions, and financial reporting practices following the
identification of discrepancies in financial information previously presented to City leadership and the community.
The City recognizes that recent announcements regarding its financial condition, including the October 2, 2026, Declaration of a Financial Emergency, understandably created concern among residents, City employees, businesses, and other members of the community.
Subsequent examination of the City's financial information has identified material errors, omissions, and inconsistencies that call into question several assumptions underlying the emergency declaration. The City is taking these findings seriously and working diligently to establish a clear, accurate, and verifiable understanding of its financial position.
The City today released an updated General Fund Balance Position spreadsheet with financial system-supported documentation to correct an earlier version shared on the City's website on October 14, 2026. The earlier version of this document was an internal working draft released in error and does not accurately reflect the City’s financial position.
Main Updates to General Fund Balance Position:
• Unaudited Ending General Fund Balance is $6.1 million surplus for FY2026.
• The updated presentation includes approximately $4.87 million in public safety expenditures in each of FY2022 and FY2023 that were funded through the federal American Rescue Plan Act (ARPA).
While this analysis shows an improved financial position of the General Fund, the current FY2027 General Fund perspective results in a $1 million deficit ($56.1 million in Revenue & Beginning Fund Balance less $57.1 million in Expenditures). The City will continue reviewing the Adopted Budget to implement cost saving measures to stabilize the General Fund fiscal position for FY2027.
The updated spreadsheet with financial system-supported documentation is available on our Transparency Portal and replaces the earlier version of the spreadsheet in its entirety. Please note that the updated figures are preliminary and unaudited and remain subject to change. The City will continue to provide updates as additional information becomes available.
