Agenda Item No: K.5
AGENDA REPORT
DATE: September 1, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2026-184 CD Authorization to Amend Economic Development’s Fiscal Year 2027 Budget 2
Authorizing an Update to Fiscal Year 2026-2027 Economic Development Budget for the Revitalization & Enhancement Assistance Program (REAP) and Local/Regional Business & Partner Support Project Within Fund 551
Funding Source: $633,279; Intergovernmental Loan Fund
Contact: Nicole Benson, (707) 428-7463
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
City Council approved Resolution 2023-29 funding the Revitalization & Enhancement Assistance Program (REAP). The unused funding of $533,279, was not included in the Community Development Department’s Economic Development fiscal year (FY) 2027 budget of Intergovernmental Fund 551 and cannot be accessed to continue the program.
Community Development (CD) administered funds to pay for the Downtown Fairfield Arch renovation while awaiting reimbursement. The renovation expense was not included in FY 2025- 2026 budget. This expense was later reimbursed by the Fairfield Lions Host Club Fundraiser in the amount of $ 100,000. The reimbursement could not be utilized durin g FY 2026, as it was received at the end of the fiscal year. CD staff are requesting that the $100,000 be appropriated into FY 2027 budget.
DISCUSSION
CD maintains a balance for REAP monies in Fund 551 (intergovernmental funding). The remaining REAP funds of $533,279 were not included in the FY 2027 budget, which was approved by council Resolution 2023 -29, and currently prevents the City from utilizing the funds despite their
availability. Without an appropriation of these funds, the City cannot operate the REAP program effectively pausing revitalization and enhancement assistance efforts.
CD initially paid the associated invoices towards the renovation of the Downtown Fairfield Arch, while external fundraising efforts were underway. The Fairfield Lions Host Club conducted the fundraiser and reimbursed the city $100,000 in FY 2026; however, because the renovation was not a budgeted expense, the reimbursement could not be appropriated or used during that fiscal year. As a result, $100,000 in CD funds remained inaccessible for projects and programs. Staff are requesting that this reimbursement be added to the Intergovernmental Loan Fund 551 FY 2027 budget so the funds may be utilized to continue CD’s economic development activities for Local/Regional Business & Partner Support Project.
FINANCIAL IMPACT
The authorization is for a one -time budget adjustment for this fiscal year (FY 2026 -2027) for $633,279 from the Intergovernmental Loan Fund (Fund 551). The adjustment consists of increasing appropriations of $533,279 for REAP , and $100,000 for Local/Regional Business & Partner Support Project. No general fund money will be used.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
City Council may choose to reject the adjustment.
COORDINATED WITH
Finance Department
STAFF CONTACT
Nicole Benson, Management Analyst
(707) 428-7463
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Resolution 2023-29