Capital Improvements Program
Fiscal Year 2025/26 - 2026/27
Engineer Estimate: $8,164,000 Category: Critical Infrastructure Phase: Design Useful Life: 20-50 yr Type: Trail FY Priority Level:
Priority Criteria Met: 1) Strategic Alignment 2) Grant Fund 3) Community Benefit
CIP Code: AT-10 Public Works Code: 15015 Finance Number: PK-19-004 Project Name: Rincon Multi-Use Trail Project
Description:
The general scope of work includes a new multi-use trail between Carpinteria Avenue and Rincon County Park. The objective of this project is to close one of the gaps in the California Coastal Trail.
The California Department of Transportation is required to complete this project per the Conditional Use Permit/Coastal Development Permit of the Highway 101 Linden Avenue and Casitas Pass Road Interchanges and Via Real Extension Project.
Justification/Priority Evaluation:
The Rincon Multi-Use Trail is an undeveloped segment of the California Coastal Trail. Currently, pedestrians and bicyclists traveling this corridor must navigate along the highway shoulder or cross active railroad tracks — conditions that present significant safety concerns. This project will establish a safe, accessible connection between the developed Coastal Trail and the City, eliminating these hazards and completing a critical gap in the regional trail network.
The project aligns with Strategic Goal #3 (Enhance Quality of Life for Residents), Priority C:
Improve pedestrian, bicycle, and ADA accessibility while enhancing mobility options for all residents. The project is intended to enhance mobility, promote safe alternative transportation, and deliver lasting community benefit.
Capital Improvements Program
Fiscal Year 2025/26 - 2026/27
Estimated Cost Per Fiscal Year:
Funding Source Per Fiscal Year:
Funding Sources Prior 2025/26 2026/27 2027/28 2028/29 2029/30 Total Caltrans Grant 1,559,000 417,000 - - - - 1,976,000
Measure X 5,000 3,000 - - - - 8,000
TBD - - - 5,404,000 696,000 - 6,180,000
Total 1,564,000 420,000 - 5,404,000 696,000 - 8,164,000 Expenditures Prior 2025/26 2026/27 2027/28 2028/29 2029/30 Total Admin 130,000 1,000 - - - - 131,000
Land Acquisition - - - - - - -
Permits & Fees 37,000 2,000 - - - - 39,000
Environmental 130,000 417,000 - - - 447,000
Right-of-Way 5,000 - - - - - 5,000
Design 1,262,000 - - - - 1,262,000
Project Mgmt. - - - 1,000,000 208,000 - 1,208,000
Construction - - - 4,000,000 288,000 - 4,288,000
Contingency - - - 404,000 200,000 - 604,000
Total 1,564,000 420,000 - 5,404,000 696,000 - 8,164,000 CIP Code: AT-10 Public Works Code: 15015 Finance Number: PK-19-004 Project Name: Rincon Multi-Use Trail Project
Fiscal Year 2026/27 Budget Impact:
The design and environmental review phase is funded by a California Department of Transportation grant. Staff anticipates the project will carry over into Fiscal Year 2026/27; sufficient funding will be carried over from Fiscal Year 2025/26 to complete this phase. No additional appropriations are requested. Funding for the construction phase has not yet been identified; however, staff anticipates that completion of design and environmental clearance will substantially strengthen the City's position for future grant awards.
Capital Improvements Program
Fiscal Year 2025/26 – 2026/27
Engineers Estimate: $150,000 Category: Park Phase: Construction Useful Life: 25 yr Type: Playground FY Priority Level:
Priority Criteria Met: 1) Grant Funds 2) Community Benefit
CIP Code: Public Works Code: Finance Number: PK-26-004
Project Name: Tomol Interpretive Play Area Repair Project
Description:
This project includes the repair of rubberized safety surfacing and interpretive play features within the Tomol Interpretive Play Area. The objective of this project is to maintain the educational and cultural significance of the site while enhancing safety and durability.
Justification/Priority Evaluation:
The Tomol Interpretive Play Area has experienced deterioration due to age, weather exposure, and heavy use, resulting in worn surfacing and aging equipment. Rehabilitation is necessary to maintain a safe, functional, and engaging environment. The project will extend the useful life of the facility, bring it into compliance with current safety and accessibility standards, and preserve the interpretive and educational character of the space. Timely repairs are also cost-effective addressing deficiencies now reduces the likelihood of more extensive and costly replacement in the future. Construction will commence once sufficient funding is secured.
Capital Improvements Program
Fiscal Year 2025/26 – 2026/27
Estimated Cost Per Fiscal Year:
Funding Source Per Fiscal Year:
Funding Sources Prior 2025/26 2026/27 2027/28 2028/29 2029/30 Total Revolving Fund - - 150,000 - - - 150,000
Total - - 150,000 - - - 150,000
Expenditures Prior 2025/26 2026/27 2027/28 2028/29 2029/30 Total Admin - - - - - - -
Land Acquisition - - - - - - -
Permits & Fees - - - - - - -
Environmental - - - - - - -
Right-of-Way - - - - - - -
Design - - - - - -
Project Mgmt. - - - - - - -
Construction - - 130,000 - - 130,000
Contingency - - 20,000 - - - 20,000
Total - - 150,000 - - - 150,000
CIP Code: Public Works Code: Finance Number: PK-26-001
Project Name: Tomol Interpretive Play Area Restoration
FY 2026/27 Budget Impact:
The project is currently pursuing private fundraising, with $10,000 secured to date. Should fundraising fall short of the project total, staff proposes to supplement the shortfall with Tidelands Trust Fund resources. The project scope and funding approach will be re-evaluated if that funding pathway is pursued.
Mid-Cycle Budget Adjustments FY 25-27
June 8, 2026
Michael Ramirez, City Manager
Licette Maldonado, Administrative Services Director
Nick Bobroff, Community Services Director
John Ilasin, Public Works Director
Jeanette Gant, Parks, Rec, and Community Services Director
Agenda
• Mid-Cycle Budget Review: Purpose and Objectives
• What’s Included in this Presentation?
• Budget Calendar
• Funding Decision Framework
• Economic and Financial Overview
• General Fund Overview
• All Funds Overview
• Fiscal Years 2025-27 Departmental Updates
• Next Steps
Mid-Cycle Budget Review:
Purpose and Objectives
The Review provides an opportunity to evaluate the City's financial condition, validate budget assumptions, and recommend adjustments necessary to maintain service levels and long-term fiscal sustainability.
Objectives:
• Assess the City's current financial position.
• Adapt to changing economic and operational conditions. • Align resources with Council priorities and strategic goals. • Protect long-term fiscal sustainability
WHAT WE WILL COVER TODAY
Financial Overview
Budget Amendments to 25/26
Budget Amendments to 26/27
ITEMS PREVIOUSLY DISCUSSED:
Master Fee Schedule (April 27, 2026)
Capital Improvements Budget (May 26, 2026)
Sales Tax Sample Ballot Language (May 26, 2026)
What’s included in this Presentation?
This presentation highlights key changes over the past year and provides an outlook on priorities and initiatives moving forward. It is not intended to serve as a comprehensive review of all budget line items included in the adopted two-year budget.
• Budget meetings with the
Administrative Services Director
• Budget meetings with City
Manager
• General Fund Balancing
• Finance Committee Review
• Mid-Cycle Budget Presentation to
Council
• Adoption
Budget Calendar
Department Requests → Revenue Forecasting → Internal Review → Finance Committee Review → City Council Adoption → Budget Monitoring January- March April- June July- September
• Mid-Year Budget Review
• Mid-Cycle Budget kick-off
• Position Allocations
• Departments develop Budget
• Capital Budget
• Master Fee Schedule changes
• Implementation
• Carryovers
• 5-Year Long-Term Financial Plan
Request for Proposal (RFP)
• 5-Year Capital Improvement Plan
RFP
• Pavement Management Plan RFP
• Asset Management Plan RFP
Mid Cycle 2026/27
Funding Decision Framework
Before allocating resources, adding staff, extending contracts, or funding new initiatives, the City evaluates:
1. Legal and Regulatory Requirements
• Is the activity required by federal, state, or local law? • Is it necessary to maintain compliance with permits, mandates, or regulations?
2. Council Priorities and Strategic Goals
• Does the expenditure support adopted Council priorities? • Does it advance strategic plan objectives?
3. Service Level Impacts
• What impact would approval or reduction have on community services?
• Can service levels be maintained through alternative approaches?
Funding Decision Framework
Continued
4. Operational Efficiency
• Can the work be performed more efficiently through process improvements, technology, or organizational changes?
• Are there opportunities to eliminate duplication or consolidate functions?
5. Staffing and Contracting Evaluation
• For vacancies, is the position still needed as currently structured? • Can responsibilities be redistributed, reclassified, or contracted? • For contracts, has the scope been reviewed and market pricing evaluated?
6. Financial Sustainability
• Is there a sustainable funding source?
• What are the long-term budget implications?
Economic and Financial Overview
Economic & Financial Overview
Key Financial Realities
1. Expenditure Growth Continues to Outpace Revenue Growth • Structural deficit remains the City's primary long-term financial challenge. • Public safety and other core service costs continue to increase faster than ongoing revenues.
• Salary and benefit costs remain one of the City's largest expenditure categories. Annual CPI-based adjustments contribute to ongoing cost growth, while helping the City remain competitive in attracting and retaining qualified employees.
2. Operational Efficiencies Remain Important
• Vacancies, contracts, and service delivery models are continually evaluated. • Efficiencies extend available resources and improve service delivery.
3. Revenue Growth Is Generally Incremental
• Municipal revenues are influenced by economic conditions, voter-approved tax rates, property tax regulations, and development patterns.
• Revenue growth often occurs more gradually than expenditure growth.
4. Long-Term Fiscal Sustainability Requires Ongoing Monitoring • The Mid-Cycle Review provides an opportunity to assess trends, adjust assumptions, and make informed decisions before challenges become more significant.
Ongoing Revenues & Expenditures
15.4 18
8.3 17.1
17.6 19.3 19.1
21.0 18.2
18.6 15.9
8.7 3.9
5.1 4.7
7.7 18.8
19.3
General Fund
Budget Adustment Overview
General Fund Revenue Summary
(including Measure X) FY 2027 Proposed Revenue
General Fund Expenditure Summary
(including Measure X) FY 2027 Proposed Expenditures
General Fund Operating Transfers (Subsidies)
How much of these subsidies come from
Measure X and the General Fund?
General Fund (including Measure X) Overview
Fund Balance
Increase $1.3m
Fund Balance
Usage $0.5m
Fund Balance
Usage$2.8m
Fund Balance
Increase $0.5m
Fund Balance
Usage $0.5m
Fund Balances and Policy Reserves
(FY 2025/26 and FY 2026/27)
All Funds
Budget Adustment Overview
All Funds Revenue Summary
FY 2027 Proposed Revenue
All Funds Expenditure Summary FY 2027 Proposed Expenditures
All Funds Expenditures
Proposed Changes by
Department and
Programs
FTE: 8 | Overall Budget: $11.5M | Proposed Increase: $0.1M Material Changes and Impacts:
Current FY 2025/2026
Major Projects Completed or Started:
• Initiate Emergency Operations Plan and 5-Year
Emergency Preparedness Plan
• Prepare Fall 2026 general municipal elections
• Prop 218 Assessment District Balloting Process
• Agenda Management System: Migration and
Transition
• Developed and Implemented an E-Conveyance
Education and Enforcement Strategy; Passed
Ordinance 795; executed contract with MOVE
Santa Barbara
• Community Grants Program fund distribution
and recipient report out completed
• Drafting of Arts in Public Places Program
• Audited City insurance records to ensure proper
coverage and identify savings
• Increase in Legal Costs by $126k,
reflecting higher levels of litigation and
associated legal support requirements
• Reduction in property insurance costs by
$57k as a result of internal insurance asset
audit. Savings helped to offset net increase
in department expenditures.
• Elimination of Green Business Program
funds by $1k (full amount) resulting in one
less mechanism for advancing
environmental and sustainability goals.
• Reduction of $16k to Economic Vitality;
transferred to fiscal year (FY) 2026/27
bringing the total program budget to $31k in
FY 26/27.
General Government
Department responsible for:
• City Administration
• Legal Services
• Records Management
• Elections
• Staff Recruitment, Retention, and
Development
• Emergency Preparedness
• Community Promotions and
Communications
• Economic Vitality
• Community Services Support
• Risk Management
• Law Enforcement
• Racial Equity and Social Justice
FTE: 8 | Overall Budget: $11.7M | Proposed Reduction: $0.1M General Government
Department responsible for:
• City Administration
• Legal Services
• Records Management
• Elections
• Staff Recruitment, Retention, and
Development
• Emergency Preparedness
• Community Promotions and
Communications
• Economic Vitality
• Community Services Support
• Risk Management
• Law Enforcement
• Racial Equity and Social Justice
Upcoming FY 2026/2027
Major Projects Coming Up:
• Emergency Operations Plan and Five-Year
Emergency Preparedness Plan Completion
• Completion of Fall 2026 General Municipal
Elections for Council Candidates Districts 1, 3,
and 5
• Classification and Compensation Study
• Personnel Rules and Regulations Update
• Execute the E-Bike Enforcement and Youth
Diversion Program
• Develop Legislative Policy Platform
• Development of Arts in Public Places Program
• Sheriff Contract Negotiations
• Union Negotiations
• Development of new Strategic Plan
• Initiate collaborative effort with CJPIA to resolve
outstanding LossCAP compliance items
Material Changes and Impacts:
• Increase in Legal Costs by $118k, reflecting
higher levels of litigation and associated
legal support requirements
• Reduction in liability and property insurance
costs by a total of $126k as a result of
internal insurance asset audit.
• Reduction to meetings and travel by $5k
and training by $3k resulting in decreased
staff participation in regional meetings, and
industry training and conferences.
• Reduction of $60k to community service
support grant program resulting in
decreased available funding for local nonprofits.
• Incease of $25k to support update to City’s
Emergency Operations Plan.
• $6k increase for screening of volunteers.
FTE: 5 PTE: 1 | Overall Budget: $1.6M | Proposed Reduction: $0.1M Material Changes and Impacts:
Current FY 2025/2026
Major Projects Completed or Started:
• Administrative Policies Implemented: Added
procurement procedures and City credit card
policy to improve controls.
• Business License Compliance Enhanced:
Strengthened coordination with HdL and Code
Enforcement and set compliance timeline.
• Citation & Collections Launched: Improved
tracking and recovery of outstanding City
revenues.
• Technology Modernization Advanced:
Supported Microsoft 365 migration planning,
licensing review, and cost analysis.
• Professional Services reduced by $35k
due to the delay of Microsoft 365
transition.
• Software Subscriptions/Maintenance
reduced by $37k due to the delay of
Microsoft 365 transition.
Administrative Services
Department responsible for:
• Financial Management Services
• Central Services
• Management Information Services
FTE: 4 PTE: 1 | Overall Budget: $1.8M | Proposed Reduction: $ 0.2M Major Projects Coming Up: Material Changes and Impacts:
• Develop and Adopt a Comprehensive Grant
Management Policy establishing clear roles,
responsibilities, and timelines for grant
administration.
• Complete Business License Compliance
Procedures and implement standardized
workflows in partnership with HdL and Code
Enforcement.
• Execute Citywide Microsoft 365 Migration
including implementation, staff training, and
retirement of legacy systems.
• Implement a Capital Asset Management Policy
to strengthen inventory tracking, capitalization
standards, and financial reporting.
• Continue Professional Development Initiatives
to enhance staff expertise and organizational
capacity.
• Utility Services reclassed by 180k to
Facilities Program
• Funding for 5-Year Long-Term Plan $25k
• Funding for Microsoft 365 $50k
• Funding for Website redesign $50k
Administrative Services
Department responsible for:
• Financial Management Services
• Central Services
• Management Information Services
Upcoming FY 2026/2027
FTE: 10 PTE: 2 | Overall Budget: $2.3m | Proposed Reduction: $0.2M Material Changes and Impacts:
Current FY 2025/2026
Major Projects Completed or Started:
• Restart monthly Inter-Departmental Advisory
Group (IDAG) meetings
• Acquire & launch new online GovWell
permitting platform
• Launch Data Ticket service to streamline
collection of fines & penalties
• Release public draft of General Plan/Coastal
Land Use Plan update and begin EIR process
• Housing Element implementation
⚬ Update ADU regulations
⚬ Update Density Bonus provisions
• Multifamily Residential Smoking Regulations
outreach & education
• Update project applications to comply with
State housing laws
• Adopt Code Officer Safety Standards per SB
296
• ~$200k reduction in current FY attributed to
Strategic Plan work items that are deferred
to next FY
• Revenues from permit fees & charges for
services nearly 2x initial budget projections
due to high workload (up $480k)
⚬ Nevertheless, permit fees likely remain
below market rate and do not fully
cover costs of service
• Increased annual costs for permit platform
software ($27k) expected to be largely
offset by technology surcharge revenues
($23k)
Community Development
Department responsible for:
• Community Development Administration
• Advanced Planning
• Housing
• Department Review and Building
• Code Compliance
• Animal Care and Control
FTE: 10 PTE: 2 | Overall Budget: $2.1M | Proposed Increase: $0.2M Major Projects Coming Up: Material Changes and Impacts:
• Complete EIR for General Plan/Coastal Land
Use Plan update & begin adoption hearings
• Housing Element implementation
⚬ Special Needs & Supportive Housing
regulations
⚬ SB9 lot split regulations
⚬ Inclusionary Housing Ordinance update
⚬ Residential Objective Design Standards
• Short-term Rental Regulations updates
⚬ Fines & penalties
⚬ Host platform reporting
⚬ Admin policies updates
• Building Permit Cost of Service & Fee Study
• Business Licensing process improvements
• Acquire & launch online dog licensing platform
Community Development
Department responsible for:
• Community Development Administration
• Advanced Planning
• Housing
• Development Review and Building
• Code Compliance
• Animal Care and Control
Upcoming FY 2026/2027
• Revenues from charges for services expected
to remain up from past year (~$130k increase)
⚬ Despite projected increase; expenditures
expected to surpass revenues by ~$365k
• Budgeted $25k for Building Permit Fee Study
to ensure full cost recovery for Building &
Safety Division, including City staff & contract
services
• Continued use of limited contract services to
support City staff while controlling costs.
⚬ Contract staff costs mostly offset by grant
funds & applicant reimbursements
• Improved efficiencies in licensing programs &
enhanced enforcement tools may improve
compliance and generate modest revenue
increases
FTE: 14 PTE: 2 | Operating Budget: $3.1M | Proposed Reduction: $0.7M Material Changes and Impacts:
Current FY 2025/2026
Major Projects Completed or Started:
• Initiated Construction of the Franklin Creek
Trail Improvement Project
• Completed the Linden Avenue Improvements
Project
• Engaged More Than 300 Local Students and
Diverted 20 Cubic Yards of Waste Through
Solid Waste Education Programs and
Community Events
• Hosted Three Creek Week Cleanup Events to
Support Environmental Stewardship and
Watershed Health
• Implemented Multilingual Translation
Capabilities for the City's Service Request
Platform
• Railroad Support Services ($30k): Eliminates
subject matter expert support for railroadrelated issues • Pedestrian Bridge Inspections ($50k):
Routine inspections deferred, delaying
identification of maintenance needs
• Storm Drain Master Plan ($50k): Update of
the Master Plan deferred, resulting in
continued reliance on an outdated data
• Irrigation Repairs ($17k): constrains Public
Works’ ability to complete repairs if needed,
impacting public landscape.
• Storm Drain Maintenance ($15k): Reduced
funding limits routine maintenance and
cleanouts, potentially reducing capacity to
mitigate localized flooding risk.
Public Works Department
responsible for:
• Department Administration
• Capital Improvements
• Transportation, Parking, and Lighting
• Street, Fleet, Parks, and Facilities
Maintenance
• Resource Conservation
• Solid Waste
• Watershed Management
FTE: 14 PTE: 2 |Operating Budget: $2.7M | Proposed Increase: $0.1M* Major Projects Coming Up: Material Changes and Impacts:
• Begin construction of Carpinteria Avenue
Bridge Replacement Project
• Complete Construction of the Carpinteria High
School Area Crosswalk Project
• Complete Design of the Carpinteria Community
Pool Project
• Execute a Memorandum of Understanding for
Enrollment in the Community Hazardous Waste
Collection Center Program
• Obtain Approval of the Trash Implementation
Plan
• Complete the 2027 Capital Improvement
Program and Nexus Study Update
Public Works Department
responsible for:
• Department Administration
• Capital Improvements
• Transportation, Parking, and Lighting
• Street, Fleet, Parks, and Facilities
Maintenance
• Resource Conservation
• Solid Waste
• Watershed Management
Upcoming FY 2026/2027
• Engineering Services ($54k): Eliminates
external support services, reducing technical
capacity for project delivery and review.
• Park & Facility Repairs/Maintenance ($91k):
Eliminates contingency funding for repairs and
maintenance of parks and facilities. Reduction
increases the risk of deferred maintenance,
aesthetic decline, and temporary closures of
parks, trails, and restrooms if repair needs
exceed available funding.
• Capital Project Management Consultant +$50k:
Budget increase supports accelerated project
delivery, helping reduce overall project lifecycle
costs.
• Pavement Condition Update +$50k: Budget
increase supports updated assessment of
pavement conditions and improved identification
of cost-effective strategies.
The proposed increase is primarily attributable to utility costs transferred to the Public Works budget. Excluding these transfers, the net proposed budget change reflects a reduction of approximately (-$218,000).
FTE: 7 PTE: 79-94 | Overall Budget: $2.3M | Proposed Reductions: $ 41,350 Material Changes and Impacts:
Current FY 2025/2026
Major Projects Completed or Started:
• Formal Donation Policy adopted by City Council
• Community Pool Facility Needs Assessment
• Started the Community Pool Design
• Translated program applications and forms for
AgeWell, Garden and Facility Rentals to
Spanish.
• Facilitated the formal adoption and launch of
the Library’s three-year strategic plan.
• Gathered feedback from AgeWelll and
Community Garden members via surveys.
• Established post rental surveys for all facility
renters.
• Launched Sunday swim lessons.
• Expanded aquatics programming to include
kayaking, stand-up paddleboarding and other
ocean recreation programming.
• Reduced $28,000 in AgeWell operating
expenses. Unspent budget in meetings &
travel, supplies & materials, and minor
equipment.
• Reduced $28,000 in Library operating
expenses. Unspent budget in library
programs, printing, meetings & travel,
books, supplies & materials.
• Increased $2,000 in Veterans Hall
operating expenses to support facility
rentals and facility upkeep.
• Reduced $4,000 in Community Pool
meetings & travel budget.
• Reduced $3,200 in Junior Lifeguards. Field
trips (pass through costs, reduction in
revenue) and supplies & materials.
• Parks, Recreation, and Community Services
Administration
• Community Pool Services/Aquatics
• Ocean Beach Services
• Junior Lifeguards
• Library Services
• AgeWell
• Community Garden
• Skate Park
• Open Space
• Park & Facility Rentals
Parks, Recreation, and
Community Services Department
responsible for:
• Parks, Recreation, and Community Services
Administration
• Community Pool Services/Aquatics
• Ocean Beach Services
• Junior Lifeguards
• Library Services
• AgeWell
• Community Garden
• Skate Park
• Open Space
• Park & Facility Rentals
Upcoming FY 2026/2027 FTE: 7 PTE: 79-94 | Overall Budget: $2.3M | Proposed Reductions: $ 31,325 Major Projects Coming Up:
• Initiate and lead a capital fundraising campaign
for Community Pool renovations
• Launch initial planning phase for Rincon Bluffs
Open Space
• Begin construction on Bluffs II Costal Vista Trail
• Use participant and volunteer feedbak from the
AgeWell and Garden surveys to inform
programming, classes and events.
• Establish a Youth Aquatics Scholarship
Program
• Formal adoption of a Sponsorship Policy
Material Changes and Impacts:
• Reduced AgeWell operating expenses by
$9,000. Reduced meetings & travel,
supplies & materials, and equipment budget.
• Reduced Community Library operating
expenses by $25,000. Reduced Library
programs, printing, books, supplies &
materials, and equipment.
• Reduced department sign replacement
budget by $2,500. Will only replace signs
that are damaged beyond repair.
• Reduced Ocean Beach services $1,500
• Reduced $7,000 from Junior Lifeguards
including Field Trips (pass through cost) and
supplies & materials.
• Budget reductions may result in scaled-back
programming, resources, supplies, and
services across programs.
Parks, Recreation, and
Community Services Department
responsible for:
Next Steps
• 5-Year Financial Plan
• 5-Year Capital Improvement Plan
• Asset Management Plan
• Pavement Management Plan
• Union Negotiations
• Sheriff Contract Negotiations
• 2-Year Budget & Strategic Plan
Question & Answer
Portion
Take Action
Home / Advocacy / Take Action
Cal Cities' advocacy efforts are strongest when joined by the voices of city leaders.
Below is a list of current legislative proposals that local officials should act on to support cities' top legislative priorities, along with sample support or opposition letters.
Oppose AB 1383 (McKinnor) Public employees’ retirement benefits.
Action Requested: Submit a letter of opposition to AB 1383 (McKinnor), a bill that would make several significant changes to Public Employees’ Pension Reform Act (PEPRA), resulting in substantial cost increases for cities and other public agencies. AB 1383 is in the Senate Labor Employee Relations & Retirement Committee.
What the Bill Does:
• Increases the pensionable compensation cap for PEPRA public employees. • Reduces the retirement age for public safety employees from 57 to 55, applied prospectively.
• Creates a new fourth safety tier, establishing a 3% @ 55 formula that is prospective and subject to collective bargaining.
• Allows local agencies to adjust their local pension formulas prospectively, providing them with the authority to modify benefit structures going forward.
Why AB 1383 is Important to Cal Cities Members:
• PEPRA reforms have generated an estimated $5.8 billion in savings to date and $26.5 billion projected over 10 years.
• Changing these reforms would increase employer and employee contribution rates, create new administrative and long-term solvency challenges for cities, and would undermine a decade of progress in stabilizing pension systems and managing long-term liabilities.
Agenda Section: Legislative Update
Agenda Item No.: 17
Council Meeting Date: June 8, 2026
• Cities are already facing rising pension obligations, stagnant revenues, and new federal and state mandates that strain local budgets.
• Higher pension costs would threaten core city services, staffing levels, and overall fiscal stability.
• Increased mandated costs would limit cities’ ability to invest in workforce compensation, community programs, and essential public services.
Links and Attachments: Sample Letter
Where to Send Letter: Please upload your letter to the Legislative portal, email the letter to [email protected], and to your regional public affairs manager.
Questions? Please contact Johnnie Piña, [email protected] or your Regional Public Affairs Manager with any questions.
Sample city opposition letter