The City of Fullerton has published its check register for July 2026, which will be in the Consent Calendar for the City Council meeting scheduled for August 18. Total disbursements for July amount to $59,667,762, covering transactions from July 1 to July 31. A significant portion of this amount was allocated to a single payment, underscoring the city’s financial commitments as it enters a new fiscal year.
On July 30, Fullerton wired a substantial $28,679,708 to the California Public Employees’ Retirement System (CalPERS) to address its prepaid annual unfunded accrued liability. This payment represents about 48 percent of the city’s total expenditures for the month, dwarfing every other transaction by more than seven times.
Monthly Financial Breakdown
The city’s disbursement register reveals a sharp division in types of payments made throughout July. Routine accounts-payable transactions—comprising payments to vendors, contractors, and residents—totaled $12,473,123 across 905 individual line items through eleven check runs. In stark contrast, “other disbursements” reached a significant $47,194,639 across just 25 transactions.
This uneven distribution is typical for July, as California cities begin their fiscal years on July 1. Many annual financial obligations, including pension contributions and insurance premiums, come due all at once during this first month.
Diving Deeper into Pension Payments
The CalPERS transfer warrants closer examination. Unlike standard payroll contributions—which are recorded separately with amounts such as $573,428 on July 10 and $594,063 on July 24—the $28.7 million payment addresses Fullerton’s unfunded accrued liability for the year. By paying this sum upfront, the city can take advantage of a discount offered by CalPERS, a strategy many California municipalities use when cash flow allows.
Combined with payroll costs of $5,292,851 and various health and disability premiums totaling $897,771, employee compensation and benefits account for about $36.1 million, representing just over 60 percent of the city’s total expenditures for July.
Additional Spending Categories
In addition to pension payments, three key categories dominated Fullerton’s remaining financial outflows:
Insurance: The city paid $3,985,382 to the Independent Cities Risk Management Authority for annual premiums and $1,278,766 to Arthur J. Gallagher for insurance renewals on July 30, totaling approximately $5.29 million.
Water Services: Fullerton allocated $2,120,831 for imported water purchases and $3,275,719 for assessments from the Orange County Water District for groundwater production, resulting in a total of around $5.4 million.
Utilities: Southern California Edison and SoCal Gas received payments of $332,276 and $11,094, respectively, on July 31.
Major Vendor Payments
Among the vendor transactions, refuse hauling emerged as a notable expenditure, with Republic Services receiving $1,319,248 on July 10. Most payments went to capital construction contractors, totaling nearly $4 million across various firms, including Williams Pipeline Contractors and R.J. Noble Co.
Technology expenditures were also significant, with payments to multiple firms exceeding $1 million, including SHI International Corp. and Tyler Technologies, as part of an annual renewal cycle typical for this time of year.
In summary, Fullerton’s financial activities in July reflect the city’s strategic approach to managing substantial annual costs while setting the stage for the fiscal year ahead.
081826 AS Check Register Transmittal
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