Proposed FY 2026-27 Mid-Cycle Budget
City Council Budget Workshop
June 2nd, 2026
1 City Council Strategic Priorities
Enhance Community Safety & Services
Build Resilience to Climate Change & Water Level Rise
House All Alamedans and End Homelessness
Invest in Transportation, Infrastructure, Economic Opportunities & Historic Resources Practice Fiscally Responsible, Equitable & Inclusive Governance 2 Budget Overview
3 FY26-27 Mid-Cycle Budget Council Direction
Add Parking Technician (Offset by revenue)
Add 4 Police Officers
Convert the following requested full-time positions into part-time equivalents:
One Budget Analyst in Finance
One Safety Officer in HR
One Office Assistant in Fire
One Park Maintenance Worker (for 6 months) in ARPD
Utilize $4.4M in fund balance in the OPEB Trust fund to pay annual OPEB costs Note: All new positions to be reviewed by new City Manager before any actions are taken 4 New Position Requests Converted to Part-Time Equivalents 5 Dept
Full-Time Position Requested
Cost
Part-Time Position
Cost
Savings
ARPD
Park Maintenance Worker I (6 months only)
$64,000
Maintenance Specialist I (6 months only)
$33,500
$30,500
Finance
Administrative Management Analyst
$197,770
Administrative Specialist II
$97,000
$100,770
Fire
Office Assistant
$130,100
Administrative Assistant II
$53,000
$77,100
HR
Safety Officer
$197,770
Administrative Specialist II
$97,000
$100,770
PW
Division Manager
$251,800
None
$0
$251,800
TOTAL
$841,440
$280,500
$560,940
FY26-27 Mid-Cycle Budget Overview
Overall, City remains in a stable but tight financial position due to reliable property tax revenues, healthy reserves, and a modest residual fund balance With incorporated changes, the City’s General Fund Expenditure Budget is $159.28 million and its Revenue Budget is $158.56 million Aquatic Center construction bid increased costs by $5 million and is coming to Council for consideration June 16, 2026.
Possible Transfer Tax Ballot Measure could cost the City $10 million per year The anticipated ending residual fund balance is projected to be:
$9.7 million (with Aquatic Center increase included)
$14.7 million (without Aquatic Center increase)
6 7
General Fund Revenues by Category
8 General Fund Expenditures by Department
9 Average Yearly Revenue Growth: 4.53%
Average Yearly Expenditure Growth: 7.33%
General Fund Expenditures Outpacing Revenues
Upcoming FY27-29 Biennial Budget Anticipated Cost Increases Unfunded pension liabilities increased payment: $2,000,000 per year Dignity Village operations (grant funds expire): $2,000,000 per year Library Fund continued General Fund support (previous use of fund reserves): $1,250,000 per year IT Internal Service Fund rate holiday ending: $750,000 per year Totals to $6 million in ongoing annual costs starting in Fiscal Year 2027-28 10 Next Steps
11 Next Steps
Review whether to convert part-time positions to full-time positions at FY26-27 Mid-Year after completing the 5-year forecast Approve and adopt the FY26-27 Mid-Cycle budget and workforce changes as proposed in the staff report. 12 Council Questions, Discussion & Direction
Thank you
Ecaterina Burton,
Budget Manager
13 Ross McCarthy,
Finance Director