Foster City City Council
May 19, 2026

CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
(EOC) EMERGENCY OPERATIONS CENTER
1040 E. HILLSDALE BLVD.

FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING  HTTPS://FOSTERCITY­ ORG.ZOOM.US/J/82592136594  PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO  [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 1040 E. Hillsdale Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

Members of the public wishing to speak will be asked to fill out a Request to Speak Form. Forms will be accepted until the staff presentation on an agenda item ends, or until the public comment period on non­ agenda items is closed. For special meetings, public comment is limited to item(s) on the agenda only.

To Observe the Meeting via Teleconference/Video Conference:

To access the meeting by computer / smartphone, go to:  https://fostercity­org.zoom.us/j/82592136594 To dial­in via phone:
1­669­444­9171 or
1­408­638­0968
And enter Webinar ID: 825 9213 6594
To Participate in the Meeting by Providing Public Comment via Teleconference/Video Conference:

During the Meeting: Live verbal public comments may be made by members of the public joining the meeting via Zoom. Zoom access information is provided above. Use the “raise hand” feature (for those joining by phone, press *9 to “raise hand”) during the public comment period for the agenda item you wish to address. The Zoom Host will call on people to speak by name provided or last 4 digits of phone number for dial­in attendees. Please clearly state your full name for the record at the start of your public comment.

Before the Meeting: Written public comments for the record may be submitted in advance by 4:00 p.m. the day of the meeting by email to:  [email protected]  and will be made part of the written record but will not be read verbally at the meeting. Written public comments submitted by email should adhere to the following:

Clearly indicate the Agenda Item No. or specify “Public” in the Subject Line for items not on the agenda Include the submitter’s full name (Recommended but not required) Written public comments received by 4:00 p.m. the day of the meeting will be provided in their entirety to the City Council prior to the meeting and will be made part of the written record but will not be read verbally at the meeting.

Written public comments will be posted to the City’s website for review prior to the meeting.

AMENDED
AGENDA
Tuesday, May 19, 2026 6:30 PM
SPECIAL MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. ROLL CALL
Councilmembers/ex officio EMID Directors Stacy Jimenez, Suzy Niederhofer, Patrick Sullivan, Phoebe Venkat, and Mayor/President Art Kiesel

3. PUBLIC
Pursuant to Government Code Section 54954.3(a), members of the public wishing to address the Council may do so, and the comments shall be limited to the Special Meeting notice topic(s). Speakers may join the Zoom meeting via the meeting link and using the “raise hand” feature and the Zoom host will call on people.

4. REPORTS

4.1. Preliminary Biennial Budget for Fiscal Years 2026­27 and 2027­28 and Five­ Year Financial Plan for FY 2026­27 to FY 2030­31
a) Staff Report
b) Action – By Minute Order, Provide Policy Direction

5. ADJOURNMENT
The public is invited to attend.

Any attendee wishing special accommodations at the meeting should contact the City Clerk’s Department at (650) 286­3250 or [email protected] at least 48 hours in advance of the meeting. The City has a procedure for receiving and swiftly resolving requests for reasonable accommodation for individuals with disabilities, consistent with the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and resolving any doubt in favor of accessibility.

That procedure for receiving and resolving requests for accommodation is available at the City Clerk’s Office. All meetings are conducted in a manner consistent with applicable civil rights and nondiscrimination laws.

Any writings or documents provided to a majority of the City Council or EMID Board regarding any item on this agenda after the agenda packet was distributed will be made available for public inspection in the City Clerk Department at City Hall located at 610 Foster City Boulevard during normal business hours and at the meeting.

City Council meetings on FCTV on Comcast Channel 27 and AT&T Channel 99:

LIVE every 1st and 3rd Monday of the month
REPLAY next day at 1:00 pm (that week only)
REPLAY Saturday at 5:00 pm (only on Saturday the week the actual meeting occurs) City Council meetings on https://www.fostercity.org/community/page/fctv­live­stream:

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings on­demand:
https://www.fostercity.org/agendasandminutes

1 CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
(EOC) EMERGENCY OPERATIONS CENTER
1040 E. HILLSDALE BLVD.

FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING  HTTPS://FOSTERCITY­ ORG.ZOOM.US/J/82592136594  PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO  [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 1040 E. Hillsdale Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

Members of the public wishing to speak will be asked to fill out a Request to Speak Form. Forms will be accepted until the staff presentation on an agenda item ends, or until the public comment period on non­ agenda items is closed. For special meetings, public comment is limited to item(s) on the agenda only.

To Observe the Meeting via Teleconference/Video Conference:

To access the meeting by computer / smartphone, go to:  https://fostercity­org.zoom.us/j/82592136594 To dial­in via phone:
1­669­444­9171 or
1­408­638­0968
And enter Webinar ID: 825 9213 6594
To Participate in the Meeting by Providing Public Comment via Teleconference/Video Conference:

During the Meeting: Live verbal public comments may be made by members of the public joining the meeting via Zoom. Zoom access information is provided above. Use the “raise hand” feature (for those joining by phone, press *9 to “raise hand”) during the public comment period for the agenda item you wish to address. The Zoom Host will call on people to speak by name provided or last 4 digits of phone number for dial­in attendees. Please clearly state your full name for the record at the start of your public comment.

Before the Meeting: Written public comments for the record may be submitted in advance by 4:00 p.m. the day of the meeting by email to:  [email protected]  and will be made part of the written record but will not be read verbally at the meeting. Written public comments submitted by email should adhere to the following:

Clearly indicate the Agenda Item No. or specify “Public” in the Subject Line for items not on the agenda Include the submitter’s full name (Recommended but not required) Written public comments received by 4:00 p.m. the day of the meeting will be provided in their entirety to the City Council prior to the meeting and will be made part of the written record but will not be read verbally at the meeting.

Written public comments will be posted to the City’s website for review prior to the meeting.

AMENDED
AGENDA
Tuesday, May 19, 2026 6:30 PM
SPECIAL MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. ROLL CALL
Councilmembers/ex officio EMID Directors Stacy Jimenez, Suzy Niederhofer, Patrick Sullivan, Phoebe Venkat, and Mayor/President Art Kiesel

3. PUBLIC
Pursuant to Government Code Section 54954.3(a), members of the public wishing to address the Council may do so, and the comments shall be limited to the Special Meeting notice topic(s). Speakers may join the Zoom meeting via the meeting link and using the “raise hand” feature and the Zoom host will call on people.

4. REPORTS

4.1. Preliminary Biennial Budget for Fiscal Years 2026­27 and 2027­28 and Five­ Year Financial Plan for FY 2026­27 to FY 2030­31
a) Staff Report
b) Action – By Minute Order, Provide Policy Direction

5. ADJOURNMENT
The public is invited to attend.

Any attendee wishing special accommodations at the meeting should contact the City Clerk’s Department at (650) 286­3250 or [email protected] at least 48 hours in advance of the meeting. The City has a procedure for receiving and swiftly resolving requests for reasonable accommodation for individuals with disabilities, consistent with the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and resolving any doubt in favor of accessibility.

That procedure for receiving and resolving requests for accommodation is available at the City Clerk’s Office. All meetings are conducted in a manner consistent with applicable civil rights and nondiscrimination laws.

Any writings or documents provided to a majority of the City Council or EMID Board regarding any item on this agenda after the agenda packet was distributed will be made available for public inspection in the City Clerk Department at City Hall located at 610 Foster City Boulevard during normal business hours and at the meeting.

City Council meetings on FCTV on Comcast Channel 27 and AT&T Channel 99:

LIVE every 1st and 3rd Monday of the month
REPLAY next day at 1:00 pm (that week only)
REPLAY Saturday at 5:00 pm (only on Saturday the week the actual meeting occurs) City Council meetings on https://www.fostercity.org/community/page/fctv­live­stream:

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings on­demand:
https://www.fostercity.org/agendasandminutes

2 CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
(EOC) EMERGENCY OPERATIONS CENTER
1040 E. HILLSDALE BLVD.

FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING  HTTPS://FOSTERCITY­ ORG.ZOOM.US/J/82592136594  PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO  [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 1040 E. Hillsdale Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

Members of the public wishing to speak will be asked to fill out a Request to Speak Form. Forms will be accepted until the staff presentation on an agenda item ends, or until the public comment period on non­ agenda items is closed. For special meetings, public comment is limited to item(s) on the agenda only.

To Observe the Meeting via Teleconference/Video Conference:

To access the meeting by computer / smartphone, go to:  https://fostercity­org.zoom.us/j/82592136594 To dial­in via phone:
1­669­444­9171 or
1­408­638­0968
And enter Webinar ID: 825 9213 6594
To Participate in the Meeting by Providing Public Comment via Teleconference/Video Conference:

During the Meeting: Live verbal public comments may be made by members of the public joining the meeting via Zoom. Zoom access information is provided above. Use the “raise hand” feature (for those joining by phone, press *9 to “raise hand”) during the public comment period for the agenda item you wish to address. The Zoom Host will call on people to speak by name provided or last 4 digits of phone number for dial­in attendees. Please clearly state your full name for the record at the start of your public comment.

Before the Meeting: Written public comments for the record may be submitted in advance by 4:00 p.m. the day of the meeting by email to:  [email protected]  and will be made part of the written record but will not be read verbally at the meeting. Written public comments submitted by email should adhere to the following:

Clearly indicate the Agenda Item No. or specify “Public” in the Subject Line for items not on the agenda Include the submitter’s full name (Recommended but not required) Written public comments received by 4:00 p.m. the day of the meeting will be provided in their entirety to the City Council prior to the meeting and will be made part of the written record but will not be read verbally at the meeting.

Written public comments will be posted to the City’s website for review prior to the meeting.

AMENDED
AGENDA
Tuesday, May 19, 2026 6:30 PM
SPECIAL MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. ROLL CALL
Councilmembers/ex officio EMID Directors Stacy Jimenez, Suzy Niederhofer, Patrick Sullivan, Phoebe Venkat, and Mayor/President Art Kiesel

3. PUBLIC
Pursuant to Government Code Section 54954.3(a), members of the public wishing to address the Council may do so, and the comments shall be limited to the Special Meeting notice topic(s). Speakers may join the Zoom meeting via the meeting link and using the “raise hand” feature and the Zoom host will call on people.

4. REPORTS

4.1. Preliminary Biennial Budget for Fiscal Years 2026­27 and 2027­28 and Five­ Year Financial Plan for FY 2026­27 to FY 2030­31
a) Staff Report
b) Action – By Minute Order, Provide Policy Direction

5. ADJOURNMENT
The public is invited to attend.

Any attendee wishing special accommodations at the meeting should contact the City Clerk’s Department at (650) 286­3250 or [email protected] at least 48 hours in advance of the meeting. The City has a procedure for receiving and swiftly resolving requests for reasonable accommodation for individuals with disabilities, consistent with the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and resolving any doubt in favor of accessibility.

That procedure for receiving and resolving requests for accommodation is available at the City Clerk’s Office. All meetings are conducted in a manner consistent with applicable civil rights and nondiscrimination laws.

Any writings or documents provided to a majority of the City Council or EMID Board regarding any item on this agenda after the agenda packet was distributed will be made available for public inspection in the City Clerk Department at City Hall located at 610 Foster City Boulevard during normal business hours and at the meeting.

City Council meetings on FCTV on Comcast Channel 27 and AT&T Channel 99:

LIVE every 1st and 3rd Monday of the month
REPLAY next day at 1:00 pm (that week only)
REPLAY Saturday at 5:00 pm (only on Saturday the week the actual meeting occurs) City Council meetings on https://www.fostercity.org/community/page/fctv­live­stream:

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings on­demand:
https://www.fostercity.org/agendasandminutes

3 6
3 6
DATE: May 19, 2026

TO: Mayor and Members of the City Council
President and Members of the Estero Municipal Improvement District (EMID) Board of Directors
FROM: Stefan Chatwin, City Manager
Nate Cruz, Finance Director
Kitty Dandan, Financial Services Manager
DEPARTMENT: City Manager
Finance
SUBJECT: REVIEW OF PRELIMINARY BIENNIAL BUDGET FOR FISCAL YEARS 2026-27 AND 2027-28 AND FIVE-YEAR FINANCIAL
PLAN FOR FY 2026-27 TO FY 2030-31

RECOMMENDATION
It is recommended that the City Council/EMID Board of Directors review and provide direction, by Minute Order, on the information provided in the Preliminary Biennial Budget for Fiscal Years 2026-27 and 2027-28 and Five-Year Financial Plan for FY 2026-27 to FY 2030-31 (“Budget and Five-Year Plan”).

EXECUTIVE SUMMARY
The Biennial Budget and Five-Year Plan is the combination of (a) the prior financial information reviewed by the Council including the CIP program, the master fee schedule, and internal service funds, and (b) the final operating revenue and expense projections. The table in Attachment 1 summarizes the Budget and Five-Year Plan for the General Fund, and the full Budget and Five-Year Plan can be found here:
https://www.fostercity.org/finance/page/annual-budget

4.1 4.1 Staff Report

4 6
3 6
The Budget and Five-Year Plan shows an operating surplus in each of the five years, before the transfer to capital. The proposed budget also includes notable changes from the FY 2025-26 budget, including:
More realistic revenue and expense projections. Prior projections were often too conservative which led to large (but positive) variances between budgeted amounts and actual results.
oThe proposed budget increases the vacancy rate assumption in personnel costs from 2.5% in the current year to 5% in each of the two budget years; and
oRather than assuming no VLF Shortfall is provided by the State, the proposed budget assumes 50% is reimbursed which, while still conservative, is closer to actual results.
A proposed labor agreement with the Foster City Police Officers Association (FCPOA) which is estimated to increase annual labor costs by $2.6m over the biennial budget period ($1.2m in FY 2026-27 and $1.4m in FY 2027-28). This FCPOA agreement, subject to future approval by Council, would make Foster City more competitive within the region for hiring and retaining police officers; Significant savings in personnel costs due to the $15 million Additional Discretionary Payment approved by Council on April 6, 2026 which result in $26.6 million in savings over the next 18 years (for net savings of $11.6 million).

Annual savings begin in FY 2026-27 at $0.9 million, then increase to $1.2 million in FY 2027-28, and stabilize at $1.5 million per year for FY 2028-29 through FY 2043-44; and
New revenues and operating and maintenance expenses for the new Community Center.

BACKGROUND/ANALYSIS
The City Council has held two study sessions on the budget (the February 10, 2026 Council Retreat and the March 23, 2026 special meetings). This budget study session is the third of four planned budget meetings prior to the scheduled adoption on June 15, 2026. Its purpose is to review the Preliminary Biennial Budget for FY 2026-27 and 2027-28 and the Five-Year Financial Plan for FY 2026-27 to FY 2030-31. City staff seeks policy direction from the City Council regarding the budget documents so that a final biennial budget can be prepared for City Council adoption.

Please refer to the City Manager’s Budget Message, the Budget Guide, the Five-Year Financial Plan and the Financial and Personnel Summaries for the full details and analysis of the Budget and Five-Year Plan.

4.1 4.1 Staff Report

5 6
3 6
California Environmental Quality Act
Not Applicable

FISCAL IMPACT
Based on policy direction provided at tonight's Budget Study Session, City staff will proceed to prepare the FY 2026-27 and FY 2027-28 Biennial Budget and Five-Year Financial Plan for FY 2026-27 to FY 2030-31 for a June 1 public hearing followed by final adoption on June 15, 2026. Upon final adoption, the FY 2026-27 and FY 2027-28 Biennial Budget will become effective July 1, 2026.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Staff Empowerment and Operational Excellence
ATTACHMENTS:

Attachment 1 - General Fund (Funds 001 to 003) Five Year Financial Plan for FY 2026- 27 to FY 2030-31

4.1 4.1 Staff Report

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4.1 Attachment 1 - General Fund Five-Year Financial Plan for FY 2026-27 to FY 2030-2031

7