ADMINISTRATIVE REPORT
MEETING DATE: June 24, 2026 AGENDA CATEGORY: Deferred Business TO: Honorable Mayor and City Council
FROM: Christian Clegg, City Manager
DATE: June 11, 2026
SUBJECT: Fiscal Year 2026-27 City Budget
1. Resolution Approving and Adopting the Operating and Capital Improvement Budgets for the City of Bakersfield, CA for the Fiscal Year 2026-27.
2. Resolution Establishing the City of Bakersfield Appropriations Limit for Fiscal Year 2026-27.
RECOMMENDATION:
Staff recommends adoption of the Resolutions.
BACKGROUND:
This administrative report and three items before the City Council are related to the adoption of the Fiscal Year 2026-27 City of Bakersfield operating and capital improvement budgets and Master Fee Schedule.
The first item is a resolution adopting the FY 2026 -27 budget, totaling $926,782,551. The budget is comprised of the operating budget, including tra nsfers, totaling $811,512,708 and the capital improvement budget totaling $115,269,843. The proposed budget reflects the funding of the City’s operating cost, including $115,354,000 in Bakersfield Public Safety and Vital Services (PSVS) Measure appropriations and funding of various capital improvements for the 2026-27 fiscal year.
The second item is a resolution adopting the Fiscal Year 2026-27 appropriations limit of $655,291,082 as part of the budget adoption process for Council consideration. The City’s appropriations are subject to the limit total of $342,210,000. Therefore, the proposed appropriations are significantly below the maximum limit allowed by State law.
The appropriations limitation imposed by Proposition 4 (1979) and later amended by Propo sition 111 (1990) creates a restriction on the amount of government revenue that may be appropriated in any fiscal year. The appropriations limit applies only to those revenues defined as “proceeds of taxes,” such as property tax, sales tax, and transient occupancy tax. The appropriations limit is based on actual appropriations during the base year (1986 -87) and increases each year using specified growth factors.
According to the Revenue and Taxation Code, Section 7910, local governments must establish thei r appropriations limit by resolution each year at a regularly scheduled meeting or a properly noticed special meeting. During any fiscal year, a government entity may not appropriate any proceeds of taxes received more than the appropriations limit.
The a ppropriations limit is different for each agency and the limit changes each year. For calculation purposes, the appropriations limit from the previous fiscal year is increased based on population growth and inflation factors as provided by the State Department of Finance.
FISCAL IMPACT:
Adoption of the Fiscal Year 2026 -27 City Budget authorizes expenditures necessary to support citywide operations, services, and capital improvement projects. The proposed budget is balanced and aligns available resources with projected expenses while maintaining compliance with State appropriations limits. The budget also includes continued investment in public safety, infrastructure, and other priority services identified by the City Council.
COUNCIL GOAL:
Economic Opportunity for All
Safety and Resilience
Reliable Infrastructure
Community Character & Quality of Life
Innovative and Efficient City Government
ATTACHMENTS:
1. FY2026-27 Operating and CIP Budget Adoption Resolution
2. FY2026-27 Budget Adoption Resolution EXHIBIT “A”
3. FY2026-27 Gann Limit Appropriations Limit Resolution
4. FY2026-27 Gann Limit Appropriations Limit Resolution EXHIBIT “A”