CALEXICO
CITY HALL
2026-27 Proposed Budget
CITY COUNCIL PRESENTATION
JUNE 10, 2026
Citywide Budget
The proposed budget authorizes $159 million in annual spending, including $110 million in capital projects.
Debt Service General Fund
3% Operations
15%
2026-27
Budget
Enterprise/
General Fund Operations $ 24,646,656 Other
Enterprise/ Other Operations Operations
19,995,615
13%
Capital Projects 109,943,535
Debt Service 4,336,468
$ 158,922,274
Capital
Projects
69%
General Fund Overview
The proposed General Fund budget for Fiscal Year 2026-27 is balanced within available revenues and maintains current service levels.
Revenues: Expenditures: Surplus:
$24,860,924 $24,860,924 $0
General Fund Balance Trend (Includes Measure H)
The proposed General: Fund budget maintains a $5 million reserve, reflecting fiscal stability following years of financial recovery and rebuilding of reserves. $7,000,000
$5,000,000
$3,000,000
$1,000,000
-$1,000,000
2026 (Projected) • 2027 (Budget)
-$3,000,000
-$5,000,000
General Fund Revenues
Baseline revenues are projected to increase 3%, driven by higher Police Department program revenues and grant funding, while sales tax revenues remain flat.
Measure H
Transfer
11%
Property Tax
2025-26 2026-27 % Inc 32%
Property Tax $ 7,769,528 $ 7,936,000 2%
Sales Tax Program
5,241,920 5,255,000 0%
Revenues
Other General Revenues 3,030,102 3,118,411 3%
23%
Program Revenues 5,508,746 5,852,914 6%
Measure H Transfer 2,685,600 2,698,599 0%
$ 24,235,896 $ 24,860,924 3%
One-time revenue 1,674,094
25,909,991 24,860,924
Other General
Revenues Sales Tax
21% •
13% •
General Fund Expenditures by Type
Salaries and benefits represent 75% of expenditures, with higher CaPERS costs partially offset by lower workers' compensation and medical costs.
CalPERS - Retiree Medical
Unfunded 3%
Liability
12%
2025-26 2026-27
Salaries and Benefits 14,258,560 $ 14,862, 703
Operating, Capital, and Leases 6,400,939 6,336,652
CalPERS - Unfunded Liability 2,681,086 2,951,867
Retiree Medical 683,730 709,702
Operating Costs 24,024,314 24,860,924
25% Salaries and One-time Capital Transfer
1,800,000
Benefits
25,824,314 $ 24,860,924
60%
General Fund Expenditures by Program
75% of General Fund expenditures are allocated to personnel costs, while 63% of available resources support public safety services.
Library, Admin/Non-
Recreation Department
7% 16%
2025-26 2026-27
Police $ 8,522,925 Ş 8,770,698
Public Works
Fire 6,621,890 6,896,265 9%
Planning Engineering Buildin 1,045,573 1,169,874
Public Works 2,032,388 2,204,293 Planning
Library, Recreation 1,713,042 Engineering Police, Traffic, 1,636,587
Building Animal Control,
Admin/Non-Department 4,164,951 4,106,752
5% Code
24,024,314 24,860,924 Enforcement
One-time Capital Transfer 1,800,000 35%
$ 25,824,314 24,860,924
Fire
28%
General Fund Operating Requests
Departments requested $3 million in General Fund enhancements; $178,854 is included in the proposed budget.
Requests Funded
Police 1,272,908 $ 66,912
Fire 350,839 14,766
Planning, Engineering. 142,014 11,653
Public Works 712,281 7,321
Library, Recreation 496,296 34,664
Administration 348,813 43,538
$ 3,323,151 $ 178,854
General Fund Staffing Trend
General Fund staffing remains at 123 positions; 23.5 requested positions are unfunded.
160
150
140
23:5
130
120
110
100 33
90 34
31 28 28
30 26 26 25 27
80 23
70 30
60 30 28 28
28 28 28 28 28 28 28
50 40
30 52 46 46 48.0 48.0
20 42 42 41 41 41 43 43 45
10 2015 2016 . 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027. • Police • Fire a Other Programs Administration • Additional Requests (Unfunded) General Fund 5-Year Projection (Including Measure H)
2% revenue growth is insufficient to keep pace with rising pension, retiree medical, and capital costs. With Measure H expiring in 2030, the projected revenue gap grows to approximately $4 million.
$30,000,000 -- Revenues. (2% Annual
Growth)
$29,000,000
$28,000,000
$27,000,000
$26,000,000
- Expenditures (Existing
$25,000,000 staffing with 2% annual
$24,000,000 operating cost growth
$23,000,000 plus growing capital and
CaPERS obligations)
$22,000,000
$21,000,000
- - Target Revenues (With
$20,000,000 New Development) to
$19,000,000 maintain 68 Days Reserve
2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 Capital Program
-$110 Million FY 2026-27 Capital Program (Fully Funded) -$179 Million Five-Year Capital Program (Partially Funded) Developers. General
6% • 1%
Grants
Measure D
11% 24%
2026-27 2026-31
Streets Projects 21,481,847 37,875,039
New River/REACH 9,362;353 9,362,353
Heber Park 8,599,174 8,599,174
ARPA 2,358,724 2,358,724
Other General Government 4,128,753 18,105,259
Water 15,839,289 29,634,289
Wastewater 23,122,395 25,642,395
Wastewater Treatment Plant 25,051,000 46,951,000
$ 109,943,535 178,528,233 w/WW, Solid
Waste, CFD
27%
W/WW Bonds
31%
Enterprise Operations
All three programs face financial challenges under existing rates.
Water and Wastewater Funds Airport Fund
• Programs are challenged to cover debt,
operations, and capital without increasing
revenues.
• The Airport continues to face a deficit budget
and is projected to require $55,000 of
• The budget forces $420,000 and $540,000 in operating cost reductions without General vacancy or cost savings to operate within Fund support. available revenues.
• The budget does not provide capital funding
for the 5-year capital program, which
increases system risk.
Debt Service
Debt Service funding supports required principal and interest payments on outstanding debt.
Outstanding Debt
• 2014 Measure H Bonds
• 2020 Water Bonds
• 2020 Wastewater Bonds
• Hearthstone CFD Bonds
• Gran Plaza CFD Bonds
Key Takeaways
Balanced General Fund budget.
No new staffing additions or cost-of-living adjustments are included.
Reserve levels exceed City policy requirements.
Flat sales tax growth continues to limit service expansion.
Rising CaPERS costs remain a significant budget challenge.
Capital investment continues through grants, bonds, fees, and ARPA funding.
Long-term challenges include infrastructure replacement, enterprise fund sustainability, pension obligations, and the 2030 sunset of Measure H.