City of Capitola
Special City Council Meeting - Budget
Minutes
Wednesday, May 06, 2026 – 6:00 PM
City Council Chambers
420 Capitola Avenue, Capitola, CA 95010
Mayor: Margaux Morgan
Vice Mayor: Gerry Jensen
Council Members: Joe Clarke, Melinda Orbach, Susan Westman Special Meeting of the Capitola City Council – 6 PM
1. Roll Call and Pledge of Allegiance – The meeting was called to order at 6:02 PM. In attendance: Council Members Clarke, Orbach, Westman, Vice Mayor Jensen, and Mayor Morgan.
2. Additions and Deletions to the Agenda – None
3. Additional Materials
A. Item 5A - Staff Memorandum with Updated Attachment
4. Oral Communications by Members of the Public – None
5. General Government / Public Hearings
A. Presentation of the Proposed Fiscal Year 2026-27 Budget Recommended Action: Receive the proposed budget, provide staff direction, and continue budget deliberations to the next budget hearing scheduled for May 21, 2026.
City staff presented the proposed budget.
Public Comment:
Leslie Nielsen
Council requested that staff address the following points at the next budget meeting or as a part of the FY 2026-27 Budget Goals:
An evaluation of parking rates Citywide and reviewing the feasibility of the addition of paid parking in short-term rental areas in the Village; A brief review of transient occupancy tax rates and how Capitola compares to other jurisdictions;
Verification of the costs for a negotiator for employee bargaining unit agreements; Seeking funding opportunities for RING radio system infrastructure; Reviewing staff’s recommendation to freeze a vacant MSO position; A review of PEMHCA funding and its uses;
Review the Zoning Code requirements that apply to the Capitola Village for new businesses with the goal of expanding business opportunities to address vacancies; Include costs for a fiscal transparency software in the budget; Reallocate $9,000 of the Council Training & Travel Budget; Docusign Envelope ID: D64F8185-128C-8D89-8325-29707072A552 Special City Council Meeting - Budget Minutes – May 06, 2026 City of Capitola Page 2
Review costs for the replacement of the emergency generator at the Public Works Corp. Yard;
Addition of the economic development consultant contract in the proposed budget.
The Council stressed the importance of seeking new revenue sources to ensure a balanced budget in years to come.
6. Adjournment
The meeting adjourned at 8:47 PM. The next regularly scheduled City Council meeting is on May 14, 2026, at 6:00 PM.
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Margaux Morgan, Mayor
ATTEST:
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Julia Gautho, City Clerk
Docusign Envelope ID: D64F8185-128C-8D89-8325-29707072A552