FISCAL YEAR 2026-27 BUDGET INTRODUCTION
May 26, 2026
BUDGET OVERVIEW
LONG-TERM FORECASTS
5-YEAR CIP PLAN
DEPARTMENT BUDGETS
NEXT STEPS
cITY oF BELMONT
BUDGET OVERVIEW
2293155
FISCAL YEAR (FY) 2026-27 BUDGET PROCESS
Feb. 24, 2026: FY 2025-26 Midyear Budget Review/Financial Update March 3, 2026: City Council Strategic Planning Workshop May 18, 2026: Measure I Advisory Committee Meeting
May 26, 2026: Proposed Budget Intro to City Council
June 3, 2026: Audit Committee Review
June 9, 2026: City Council Public Hearing & Adoption
FISCAL YEAR (FY) 2026-27 BUDGET PROCESS
• Align with the City's adopted Strategic Focus Areas
• Sustain long-term operational needs to meet
community-identified priorities
• Continue fiscal prudence while managing service
needs
• Remain focused on infrastructure funding
and capital improvement
STRATEGIC FOCUS AREAS
CITYWIDE PRIORITIES
• Local control over local revenue sources
is essential to long-term fiscal sustainability and allow Belmont's self-reliance into the future
• Secure funding for sewer, storm, streets, facilities, and parks to address deferred maintenance and future
capital needs along with a plan to support
critical public services
• Maximize existing revenues and identify new
cost recovery strategies
BUDGET OVERVIEW
(IN MILLIONS)
FY 2026-27
BUDGET
(Proposed) 143.75
OPERATING BUDGET (CITY) $67.1
TOTAL PERSONNEL
OPERATING BUDGET (FIRE) $15.8 (- 1.0 FTE)
TOTAL OPERATING BUDGET $82.9
CAPITAL IMPROVEMENTS (CITY) $11.9
CAPITAL IMPROVEMENTS (FIRE) $0.1
TOTAL BUDGET $94.9
GENERAL FUND SUMMARY
(IN MILLIONS)
FY 2026-27
PROPOSED Use of General Fund
BUDGET reserves is needed to
RESOURCES $35.3 balance budget this
fiscal year
REQUIREMENTS $36.1
ONE-TIME SAVINGS * $0.3
RESOURCES (UNDER) REQUIREMENTS ($0.5)
USE OF UNASSIGNED FUND BALANCE $0.5
VLF loss in FY 2025-26 = $0.6 million
VLF not budgeted in FY 2026-27 = $1.8 million
* One-time departmental target savings in FY 2026-27 budget development, primarily driven by delayed recruitment of vacant positions.
GENERAL FUND
FY 2026-27 RESOURCES
(IN MILLIONS)
Property Tax* (40%) $13.8
Service Charges (14%) $5.1
Local Sales Tax (13%) $4.4
Transient Occupancy Tax (13%) $4.3
Misc. (11%) $4.3
Franchises (5%) $1.8
Business License Tax (4%) $1.6
*includes property transfer tax
GENERAL FUND
FY 2026-27 REQUIREMENTS
(IN MILLIONS)
Salaries and Wages (35%) $12.7
Benefits (24%) $8.8
Operating (25%) $8.8
Transfer Out (16%) $5.8
cITy oF BELMONT
LONG TERM FORECASTS
STATE TAKEAWAY OF PROPERTY TAXES
• The State continues to exclude funding of
outstanding obligations in property tax in lieu of VLF
(VLF) in the State's proposed budget. For the first time, only 2/3 of the FY 2023-24 shortfall was reimbursed in FY 2025-26, compared to full reimbursements in past years.
FY 2025-26: Remaining 1/3 = lose $0.6 million
FY 2026-27: Belmont stands to lose $1.8 million
> over 50% of Belmont's Local 1% Sales Tax revenue
• If the State stops shortfall reimbursements, the General Fund impact is a loss of $30 million over 10 years
• A fully funded VLF is 15% of total General Fund
operations
GENERAL FUND PROJECTION
WITHOUT VLF FUNDING
(IN MILLIONS)
$35
Worst Case Scenario -
$30
Projection assumes the
$25
State does NOT fulfill its
$20
VLF funding obligations
$15
$10
• 33% Target
$5
2033-34 2034-35 2035-36
S-
2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 $(5)
$(10)
$(15)
$(20)
GENERAL FUND REVENUE
GROWTH PROJECTIONS
(IN MILLIONS)
$50
3.6% CPI Growth*
$45
< 2% Growth
$40
$35
$30
$25
$20
2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 *5-year average of the San Francisco-Oakland-Hayward CPI-U CITY OH: BELMONT
5-YEAR CAPITAL IMPROVEMENT PLAN
R
AT
ON
CAPITAL IMPROVEMENT PLAN
OVERVIEW
$12.0M $53.1M
FY 2026-27 CIP 5-YEAR CIP PLAN
(PROPOSED)
CAPITAL IMPROVEMENT PLAN OVERVIEW
(IN MILLIONS)
Sewer/Storm (50%)
Streets (45%)
Facilities (3%)
Parks & Open Space (1%)
Technology (1%)
BELMONT FIRE PROTECTION DISTRICT
PROJECTION
(IN MILLIONS)
$50
$40
$30
Capital Reserve
$20 (New Fire Station)
$10
$-
2026-27 2027-28 2028-29 2029-30 2030-31
§BELMONT
PROPOSED BUDGET BY DEPARTMENT
COMMUNITY DEVELOPMENT
FY 2026-27 BUDGET SUMMARY
STRATEGIC Economic Development & Housing
FOCUS AREA
FUNDING SOURCES • Affordable Housing
Development Services
• General Fund
General Plan Maintenance
PERSONNEL COUNT 12.0
(Proposed)
TOTAL OPERATING $7.6M
BUDGET (Proposed)
COMMUNITY DEVELOPMENT
HIGHLIGHTS & INITIATIVES
• Permit/plan review for building construction Facilitated streamlined review/approvals for housing and renovations developments.
• Process planning entitlement applications, • Issued construction permits to allow opening of two community outreach, public hearings cannabis retail dispensary businesses. • Business license processing • Approved entitlement application for large-scale commercial/biotech development on Shoreway
• Pre-application consultations and pre-
Road.
construction meetings
Facilitated adoption of Corridor Mixed-Use (CMU)
• Maintain records of decision/related notices
District Zoning Text Amendments.
• Manage complex development review projects • Prepared framework for Regional Commercial (RC) • Prepare and update advanced planning District Zoning Text Amendments & commenced documents to guide future growth. Environmental Review. • Ongoing Implementation of: • Continued work on Harbor Industrial Area (HIA) Specific Plan.
• 2035 General Plan and 2023-2031 Housing
Element • Facilitated adoption of Charles Armstrong School entitlements for academic & athletic facility phases.
• Belmont Village Specific Plan (BVSP)
• Conducted initial review and advancing Safety
Element Update for adoption next month.
• Completed Commission & Council initial review of
Climate Action & Adaptation Plan update.
ECONOMIC DEVELOPMENT AND HOUSING
HIGHLIGHTS & INITIATIVES
• Building permits issued for 268 new housing units in 6th Cycle RHNA (2023-31) of which 236 units were
affordable.
• City also entitled affordable and market rate residential development projects comprising 387 units.
• Committed $1.OM City Affordable Housing Funds to
support 65-unit 100% affordable project at 678 Ralston
Avenue, starting construction this summer.
• Approved $2.0M Affordable Housing Funds for 63-unit
100% affordable development at 951 Old County Road.
• Two 100% affordable developments opening this
summer and tall - 125 units at 803 Belmont Avenue, and
37 units at 900 El Camino Real.
• Continued financial support to local housing service
providers HIP Housing, HEART, and Homeless Outreach
Team SMC.
• Two cannabis retail businesses have opened at 1397 and 1538 El Camino Real.
• Continued work on Harbor Industrial Area Specific Plan CLOSED to allow for future consideration of potential annexation USE OTHER * SIDE to City.
PARKS & RECREATION
FY 2026-27 BUDGET SUMMARY
STRATEGIC • Quality of Life PERSONNEL COUNT 24.25
FOCUS AREAS • Infrastructure and Mobility (Proposed)
FUNDING • Athletic Field Maintenance TOTAL OPERATING
$11.3M
SOURCE • City Trees BUDGET
• Facilities Management (Proposed)
• General Facilities
• General Fund
• Library Maintenance & Ops
• Parks & Rec. Donations BELT
• Planned Park
• Recreation
• Solid Waste MORONORA
PARKS & RECREATION
HIGHLIGHTS & INITIATIVES
• Facilities & Project Management • Recreation Programs • Address facility repairs as needed. • Deliver accessible, inclusive, age- friendly programs, services, and special
• Conduct routine and preventative
events.
maintenance on 160,000 sf of facilities.
• Provide licensed childcare services.
• Manage natural gas and electricity;
implement energy/water conservation • Partner/provide youth and teen projects. programs: summer camps, aquatics,
after school programs, the Hideout,
• Coordinate Library maintenance and
YAC, and VOICES.
improvements.
Partner/provide adult and senior
• Schedule and rent facilities for City or programs: educational and recreational private/group uses.
opportunities, day trips, transportation
• Interdepartmental collaboration on to/from Center, and lunch program. citywide capital improvement projects
• Coordinate athletic field usage for
and future implementation of asset
sports groups on City, BRSSD and CSUS
management software. fields.
• Co-host cultural celebrations in
collaboration with Belmont Library.
• Administer financial need scholarships.
PARKS & RECREATION
HIGHLIGHTS & INITIATIVES
• Parks and Open Space • Other Services and Activities
• Maintain/repair 15 developed parks, • Manage tree removal permitting 300+ acres of open space and trails, 14 • Promote tree canopy and maintain athletic fields, and 5.6 acres of "Tree City USA" status developed medians • Coordinate volunteer and educational • Maintain trees on City property opportunities
Execute grant applications and
• Conduct/coordinate open space trail administration for program scholarship improvements and fuel reduction funding, fuel reduction projects, • Collect/manage park/facility waste; equipment, and special events continue to improve • Support City departments on capital recycling/composting rates improvement projects
• Manage new construction, • Support City's internal learning and improvements, or rehabilitation of City organizational culture initiatives and activities
parks and playgrounds
• Support Centennial Celebration
• Implement Twin Pines Master Plan, planning
Parks, Recreation, and Open Space
• Support citywide community events
Master Plan recommendations
(e.g., Summer Concert Series, Belmont
• Continue Community Center Water Dog Run)
Conversations to raise awareness of
need for new community center.
POLICE
FY 2026-27 BUDGET SUMMARY
STRATEGIC Public Safety
FOCUS AREA
FUNDING SOURCES • General Fund
• Public Safety Grants
• Supplemental Law Enforcement
PERSONNEL COUNT 45.0
(Proposed)
TOTAL BUDGET $18.6M
(Proposed) A Troteive of Service
POLICE
HIGHLIGHTS & INITIATIVES
• Advance Public Safety Communication and Technology
• Deepen Community Trust & Engagement
• Strengthen Community Safety & Emergency Preparedness
BELMONT! • Strengthen Leadership Succession & Stability • Law Enforcement Administration • Traffic and Community Safety • Provide leadership/guidance to meet • Enforce vehicle code/parking regulations and exceed community expectations Coordinate traffic calming/collision • Coordinate Emergency Preparedness reduction
• Promote community partnerships Solicit/respond to traffic enforcement • Preserve the community's character
• Crime Control through code compliance
• Impartial law enforcement
• Professional Services
• Crime prevention
• Apprehension/prosecution of • Respond to community inquiries offenders • Timely dispatch of calls for service
• Collaborative resolution with a • Securely store/organize community policing philosophy property/evidence
• Community outreach • Release reports in compliance with the law
PUBLIC WORKS
FY 2026-27 BUDGET SUMMARY
STRATEGIC Infrastructure and Mobility PERSONNEL COUNT 33.0 FOCUS AREA (Proposed)
FUNDING • Development Services TOTAL OPERATING $13.9M
SOURCES • Fleet & Equipment Mgmt BUDGET
• Sewer Collections (Proposed)
• Sewer Connection Fees
• Sewer Treatment Facility
• Solid Waste
• Storm Drainage
• Measure A Street
Improvement
• Street Maintenance
PUBLIC WORKS
HIGHLIGHTS & INITIATIVES
• Stormwater & Municipal Regional Permit
Deliver stormwater capital projects:
• Twin Pines Park Belmont Creek Restoration (Complete)
• APWA Project of the Year Award
• APWA Project Manager of the Year (Daniel Matthews)
• Twin Pines Park Detention Basin (Designed)
• Salson Trail Culvert Replacement (Complete)
• 2025 Sanitary Sewer & Storm Rehabilitation (Complete) • Potentially include Island Park into Redwood Shores Sea Level Rise Protection (evaluating feasibility).
Maintain storm drainage system:
• Maintain 2 pump stations, 27+ miles of pipeline, 1,245 manholes and 1,919 inlets. • Complete dredging Belmont Creek.
Advancing compliance and resilience:
• Maintain Municipal Regional Permit (MRP 3.0) compliance. AMERICAN PUBLIC WORKS ASSOC ADWA
• Participate in Five Cities Regional Shoreline Adaptation Plan (RSAP). RICOT UPLLEY CHAPTER MILLEN CHE!
protect theseger
Sommendate
DANIEL MATTHEW
Verbut of the West
1,400 327 2 20,635 6,881
inlets full capture pump stations LF CCTV curb miles
maintained devices maintained inspected swept DW
maintained
PUBLIC WORKS
HIGHLIGHTS & INITIATIVES
• Sanitary Sewer System
Deliver sewer infrastructure projects:
• 2025 Sanitary Sewer & Storm Rehabilitation
(Complete)
• Hiller Lift Station Capacity Enhancement (Complete)
• San Juan Pump Station (Designed)
Maintain sewer system operations:
• Maintain 10 lift/pump stations, 80 miles of gravity
pipeline, 3 miles of force mains, and 2,500+
manholes.
Manage sewer funding & compliance:
• Complete FY27 to FY29 sewer rate study.
• Expand Infiltration & Inflow (I&I) program.
• / Maintain Fats, Oils, & Grease (FOG) compliance.
112,463 128,764 4,300 28,876
LF sewer LF CCTV LF pipe LF root
cleaned inspected rehabilitated foamed
PUBLIC WORKS
HIGHLIGHTS & INITIATIVES
• Transportation & Traffic Operations
Advance capital projects & studies:
• 2025 Pavement Rehabilitation (Complete)
• 2.5 miles roadway rehabilitated
• 30 ADA-compliant curb ramps installed
• Hill St & El Camino HAWK Crossing (Designed)
• Belmont Village Bike Improvements (Complete)
• Transportation Master Plan (Consultant Selected)
• Ralston Segment 4 (Design Consultant Selected)
Maintain street & traffic infrastructure:
• Pavement Condition Index of 71 (Good
Condition)
• Maintain 69 miles of roadway, 10 traffic signals,
1,450 streetlights, 3,000+ traffic signs, etc.
PCI Condition
25 Very Good - 81-100
Good (Non-Load) - 61-80
Good (Load) - 41-60
Poor - 21-40
Very Poor - 0-20
49,021 254 194 348 2,343
LF cracks tons asphalt potholes signs utility locations sealed placed repaired fabricated/ marked
replaced
PUBLIC WORKS
HIGHLIGHTS & INITIATIVES
• Solid Waste Management
Maintain integrated solid waste and recycling services:
GANDAGATe • Manage SBWMA (RethinkWaste) and Recology
services.
• Conduct 10 on-land trash cleanups, 28 trash
hotspot cleanings & 510+ tons debris removal.
• Implement SB 1383 (mandatory composting and
green waste pickup).
CITY
• Conduct solid waste & recycling rate adjustments
for 2026 per Recology franchise agreement.
BELMONT Support environmental programs & community
PID
cleanup services:
• Deliver household hazardous waste events.
• Conduct E-waste, compost, & shredding events.
• Coordinate public events, increase in
public outreach efforts (e.g., Earth Day,
Coastal Cleanup, PW Open House, social media).
PUBLIC WORKS
HIGHLIGHTS & INITIATIVES
• Development Review & Permitting
• Issue 693 Public Works permits.
• Address 90+ tripping hazards.
• Entitle 3 and complete construction of 1
major development projects. Sherit Amara
DUSTIN MOCK!
• Update procedures for streamlined reviews.
• Fleet Management
APWA Operations/Maintenance Professional of the Year:
• Dustin Moore, Senior Mechanic
Maintain and modernizing the City tleet:
• Complete preventive maintenance on 104 vehicles.
• Complete 202 maintenance and repair work orders.
• Implement ongoing fleet sustainability improvements.
Upgrade fleet assets and improving reliability:
• BMW motorcycle patrol unit
• Hybrid police patrol vehicle
• Ford F450 dump truck
• Vaccon sewer combination truck
ADMINISTRATION
FY 2026-27 BUDGET SUMMARY
FISCAL &
ORGANIZATIONAL
SUSTAINABILITY
ADMIN CITY
SERVICES CITY MANAGER/
STRATEGIC FOCUS AREA FUNDING SOURCE (HR/IT) FINANCE ATTORNEY CLERK
FLEET & EQUIPMENT
MANAGEMENT x
GENERAL FUND x
ADMINISTRATION
FY 2026-27 BUDGET SUMMARY
CITY
ADMIN
CITY MNGR/
SERVICES FINANCE
ATTORNEY CLERK/
(HR/IT)
ECON DEV
PERSONNEL 9.0 9.0 1.0 5.5
COUNT
(Proposed)
TOTAL $4.8M $3.3M $0.7M $2.8M
OPERATING
BUDGET
(Proposed)
ADMINISTRATION
HIGHLIGHTS & INITIATIVES
• Admin Services (Human Resources)
• Employee Engagement & Culture - Strengthen employee
relations through talent development, succession planning, and employee engagement initiatives that support a
collaborative, high-performing workplace.
• Workforce Recruitment & Retention - Attract, develop, and retain a diverse, highly qualified workforce aligned with Belmont's values and service standards.
• BOLD Leadership Program - Expand the BOLD program to
support employee growth in communication, collaboration, inclusive leadership, and cross-department teamwork.
• Know and Grow Framework - Support onboarding,
mentoring, performance development, and knowledge
transfer during organizational transitions.
• Leadership & Training Programs - Continue programs
including New Hire Lunch with the City Manager, regional Leadership Academies, the High School Summer Internship Program, and countywide training consortium classes.
• Labor Relations - Promote positive labor relations and collaborative resolution of workplace issues.
ADMINISTRATION
HIGHLIGHTS & INITIATIVES
• Admin Services (IT)
• Website Redesign & Resident Engagement Tools - Enhance accessibility and mobile usability to create Belmont's welcoming digital front door, including the launch of an Al-powered chatbot for 24/7 resident support.
• Unified Communications Upgrade (UCaaS) - Modernize the City's legacy phone system to improve reliability, mobility, and communication capabilities across departments. • ERP Readiness - Prepare City processes, data, and staff for a future Enterprise Resource Planning (ERP) system implementation to replace legacy software and modernize systems in finance that are secure and integrated.
Community Development System Optimization - Analyze and reconfigure Community Development software to improve payment processing functionality and ensure greater data consistency across applications. • Cybersecurity Enhancements - Strengthen cybersecurity protections through upgraded firewalls for City Hall and Corporation Yard networks, enhanced security strategies, and ongoing staff training.
Questys Document Management - Phase 1 - Complete migration of public meeting documents, provide staff training, and launch a public access portal as part of the Questys implementation. • Asset Management System Implementation - Deploy a modern asset management system to improve lifecycle tracking, maintenance planning, and capital investment decision-making. • Al Governance & Implementation - Establish safeguards, policies, and staff training to support ethical, secure, and effective use of artificial intelligence technologies. • GIS Modernization - Refresh GIS web maps and applications to improve usability, accessibility, and community engagement.
• Business Continuity Improvements - Increase operational resilience by adding internet redundancy at City Hall and replacing aging uninterruptible power supply (UPS) server devices.
ADMINISTRATION
HIGHLIGHTS & INITIATIVES
• Finance
• Received highest recognition from GFOA and CSMFO for
financial reporting and budget document. Congratations! • Full compliance and implementation of GASB 75 on MENT FINANCE OFFICERS ASSOCIATIOY leases and GASB 96 on SBITAs. Distinguished
• Conduct a comprehensive fee study update, including Budget Presentat Distinguished Award
development impact fees, to ensure fair cost recovery Budget
RESENT ITION
and help offset the cost of services driven by new Award
RESENTE
development.
• Partner with Public Works on Sewer Service charges to evaluate cost of service and adjust rates as needed.
• Explore viable funding options for Belmont Community
Center to support long-term operations and capital
CHADE
needs.
• Support Measure I Advisory Committee. OFF HOURS
NTRANCE
• Support ongoing efforts to address long-term fiscal
sustainability.
ADMINISTRATION
HIGHLIGHTS & INITIATIVES
• City Attorney
• Collaborating with executive team on Harbor Industrial Area specific plan and annexation. • Advising on Belmont Creek Restoration Project grant and contracting process. • Collaborated with executive team in obtaining passage of business license tax update. • Obtained significant recovery of legal costs associated with unsuccessful lawsuit against the City alleging storm damage to property.
• Defending lawsuit challenging the Parks and Recreation Open Space (PROS) Plan. • Assisted the council's exploration and decision to allow two commercial cannabis businesses.
• Conducted orientation and trainings on city government structure and operation for city commission members.
HIGHWAY 101 BELMONT CREEK
CHARBOR BEVD.
CALTRAIN
ONEILL AVE.
EL CAMINO REAL
ADMINISTRATION
HIGHLIGHTS & INITIATIVES
• City Manager's Office / City Clerk
• Helps carry out the City Council's vision and priorities through day-to-day City operations and budgeting.
Connecting
• Coordinates projects and initiatives across City
our
departments to better serve the community. Community
• Keeps residents informed about City services, projects, events, and important community updates.
• Responds to questions, concerns, and service requests from residents, Council, and staff.
• Maintains public transparency through accurate
records, legal filings, and open government practices. Supporting Advancing our City Belmont
• Oversees local elections, ballot measures, and voter
initiatives.
• Supports local businesses, downtown vitality, and
economic development opportunities throughout
Belmont.
City Manager's MESSAGE
With this budget as our roadmap, we are confident that Belmont will continue to move forward with purpose. Whether facing new challenges or embracing new opportunities, we will emerge stronger, more resilient, and better prepared to serve our community.
The development of this budget was truly a collaborative effort, the result of months of hard work by staff across the entire organization. I want to extend my sincere appreciation to:
* The City Council, for your leadership and clear vision that guided this process; * Our senior management team and department staff, for developing thoughtful and responsible budgets aligned with strategic goals;
* And most importantly, our Finance Department, whose expertise, dedication, and commitment brought this budget together and ensured it reflects the priorities and values of our community.
NEXT STEPS
May 18, 2026
Measure I Advisory Committee Meeting
May 26, 2026
Proposed Budget Intro to City Council
June 3, 2026
Audit Committee Review
June 9, 2026
City Council Public Hearing and Adoption