DATE: March 23, 2026
TO: Mayor and Members of the City Council
President and Members of the Estero Municipal Improvement District (EMID) Board of Directors
VIA: Stefan Chatwin, City/District Manager
FROM: Nate Cruz, Finance Director
DEPARTMENT: Finance
SUBJECT: FY 2026-27 AND FY 2027-28 BUDGET OVERVIEW AND
SCHEDULE
EXECUTIVE SUMMARY
The FY 2026-27 and 2027-28 biennial budget review and approval process continues with the March 23, 2026 budget study session and ends with final budget adoption scheduled for June 15. Notably, this review cycle will differ from prior budgets as follows:
Biennial Budget: Based on the discussion at the February 10, 2026 Council Retreat, staff is preparing a two-year budget for review and approval. Separate Park Fees: In order to provide sufficient time to establish appropriate rates for the new Community Center, the portion of the Master Fee Schedule that relates to the Parks & Recreation Department will trail the rest of the schedule by approximately one month.
No New Utility Rates: The five-year water and wastewater rates approved in the prior budget are sufficient to meet the forecasted operating and capital needs of each enterprise and no new rates are required. However, the pass-through costs of wholesale water from the San Francisco Public Utilities Commission (SFPUC) will be presented in an informational item in April and the full rates, including those pass-through costs, will be subsequently noticed to customers.
BACKGROUND
This City has 70 funds, which generally serve one of three basic functions:
Operating Funds are for annually recurring costs (primarily personnel, supplies, and contracting expenses). Appropriations expire at the end of the fiscal year. Capital Funds support one-time construction projects; appropriations do not expire.
Internal Service Funds are for irregular costs such as vehicle replacement.
These funds allow us to take predictable annual contributions from operating funds and save up for these irregular expenses.
The linkages between these fund types are shown in the simplified illustration below.
From March through June, the Council reviews different components of the budget, with final approval of the full two-year budget package on June 15. The schedule below presents the estimated dates of the steps between now and budget adoption:
Date Subject Type
Capital Projects Work Session
Master Fee Schedule (no Parks) Work SessionMarch 23
Internal Service Funds Work Session
Discussion - Master Fee Schedule (Parks) Work SessionApril 20 Master Fee Schedule (no Parks) Hearing May 18 Master Fee Schedule (Parks) Hearing
May TBD Preliminary Budget Work Session
June 1 Budget Hearing
Gann Limit InfoJune 15 Budget Adoption Resolution
CALIFORNIA ENVIRONMENTAL QUALITY ACT
Not Applicable
FISCAL IMPACT
There is no fiscal impact directly associated with this item.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Staff Empowerment and Operational Excellence
ATTACHMENTS
None