Item #01
Date: June 30, 2026
To: Mayor and City Council
From: Jim Schaad, City Manager
Anissa Leung, Finance Director
Subject: Adopt the City of Marysville’s Fiscal Year 2026-2027, Positions, Salaries, Policies, and Appropriation Limits
Recommendation:
Pass a Motion to:
1. Approve the City of Marysville Fiscal Year 2026-2027 Operating Budget;
2. Adopt Resolution No. 2026-XX approving the Fiscal Year 2026-2027 Operating Budget;
3. Adopt Resolution No. 2026-XX approving the Fiscal Year 2026-2027 Full-Time and Permanent PartTime Position Allocation;
4. Adopt Resolution No. 2026-XX approving the Fiscal Year 2026-2027 Master Salary Table;
5. Adopt Resolution No. 2026-XX approving the Fiscal Year 2026-2027 Consolidated Financial Management Policy;
6. Adopt Resolution No. 2026-XX approving the Fiscal Year 2026-2027 Investment Policy; and
7. Adopt Resolution No. 2026-XX establishing the City’s Fiscal Year 2026-2027 Annual Appropriations Limit.
Rationale for Recommendation
Section 2.10.040(6) of the Marysville Municipal Code requires the City Manager to prepare and submit the preliminary annual operating and capital improvement budget to the City Council before June 30 of each year. The budget-development process includes an analysis of anticipated revenues, operating expenditures, staffing, capital needs, restricted funding sources, reserves, and other financial obligations for all City funds.
Adoption of the annual budget provides the legal spending authority necessary for the City to continue operations beginning July 1, 2026. The accompanying position allocation, master salary table, and financial policies establish the staffing and financial framework under which the budget will be administered.
Article XIIIB of the California Constitution also requires the City to establish an annual appropriations limit, commonly referred to as the Gann Limit. The limit is adjusted each year using authorized changes in population and the cost of living and applies to certain appropriations funded from tax proceeds. The City’s supporting calculation is included in the Fiscal Year 2026-2027 Operating Budget and attached to the appropriations-limit resolution as Exhibit A.
Item #01
Additionally, under Article XIIIB, Section 3 of the California Constitution, when one public agency assumes responsibility for providing services within a territory previously served by another agency, a corresponding transfer of appropriations limit authority is required. As a result, the Gann Appropriations Limit of the agency acquiring the service responsibility is increased, while the limit of the agency relinquishing the territory is decreased. The adjustment must be revenue-neutral in the aggregate; the amount transferred from the surrendering agency must exactly equal the amount added to the acquiring agency so that the combined appropriations limits do not increase.
Under the Tax Sharing Agreement between the City and the Linda Fire Protection District, the City's Gann Limit will be reduced by $5,300,000, likewise the District's Gann Limit will be increased by the same amount.
This adjustment is made by reducing the City's Fiscal Year 2026-27 appropriations limit by $5,300,000 from the amount that would otherwise have been established.
Background
On June 23,2026, staff presented the proposed Fiscal Year 2026-2027 Operating Budget to the City Council during a public budget hearing. Staff reviewed the City’s economic outlook, projected revenues and expenditures, departmental operations, staffing, capital and infrastructure priorities, and the options available to the City Council.
The proposed budget incorporates the City’s anticipated General Fund, enterprise, special revenue, capital, grant, and other restricted resources. Revenue estimates have been prepared using available financial information, historical trends, known economic conditions, and conservative forecasting assumptions.
The budget maintains funding for core municipal services and identifies investments in public safety, streets, utilities, parks, community development, facilities, technology, and other infrastructure and programs that benefit Marysville residents. It also supports implementation of the City of Marysville Strategic Plan and the policy direction provided by the City Council.
The proposed budget, position allocation, salary table, financial policies, and appropriations-limit calculation are included in the Fiscal Year 2026-2027 Operating Budget presented for adoption.
Discussion & Analysis
The proposed Fiscal Year 2026-2027 Operating Budget presents a balanced financial plan based on currently available information and projected revenues. It reflects the anticipated cost of maintaining City services, authorized staffing, contractual obligations, capital needs, and other operating priorities.
The budget prioritizes essential services while recognizing that available discretionary funding is limited.
The City must continue to account for changes in personnel costs, retirement contributions, insurance, utilities, maintenance, equipment, professional services, regulatory requirements, and capital needs.
The budget distinguishes between ongoing and one-time resources and seeks to use restricted or one-time funding for eligible capital projects, equipment, infrastructure, transition costs, and other nonrecurring needs. Any future expansion of staffing, programs, or service levels should include an identified funding source and an evaluation of the ongoing fiscal impact.
The position allocation and master salary table establish the classifications and compensation schedules authorized for the fiscal year. Authorization of a position does not require the City Manager to fill every position and remains subject to available appropriations, operational need, applicable labor agreements, employment agreements, and City hiring procedures.
Item #01
The Consolidated Financial Management and Investment policies are included within the Fiscal Year 2026- 2027 Operating Budget and are presented for annual adoption. Collectively, these policies provide guidance for budget administration, reserve management, grant compliance, cash management, and investment of public funds.
The annual appropriations-limit calculation establishes the maximum amount of applicable tax proceeds that may be appropriated under Article XIII B of the California Constitution. The City’s proposed appropriations subject to the limit remain below the maximum amount permitted. However, the appropriations limit must be reduced by $5,300,00 to the Tax Sharing Agreement between the City of Marysville and the Linda Fire Protection District.
Alignment with City Council Goal(s)
Goal #1: Increase Fiscal Sustainability
Goal #4: Enhance Public Safety
Goal #6: Strengthen Organizational Capacity
Environmental Impact
This item is administrative in nature and does not constitute a project under the California Environmental Quality Act (CEQA)
Legal Review:
This item has been reviewed and approved by the City Attorney and approved as to form.
Fiscal Impact:
Adopting this budget will allow City management to expend City funds per Council approval and as outlined in the proposed Fiscal Year 2026-27 budget and based on projected revenues and expenses.
Attachment(s):
1) Resolution 2026-XX — Adopting the Fiscal Year 2026-2027 Operating Budget 2) Resolution 2026-XX — Adopting the Fiscal Year 2026-2027 Full-Time and Permanent Part-Time Position Allocation
3) Resolution 2026-XX — Adopting the Fiscal Year 2026-2027 Master Salary Table 4) Resolution 2026-XX — Adopting the Fiscal Year 2026-2027 Consolidated Financial Management Policy
5) Resolution 2026-XX — Adopting the Fiscal Year 2026-2027 Investment Policy 6) Resolution 2026-XX — Establishing the Fiscal Year 2026-2027 Annual Appropriations Limit, including Exhibit A
7) City of Marysville Fiscal Year 2026-2027 Operating Budget