City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov City Council
SPECIAL MEETING MINUTES
Date: 3/21/2026
Time: 10:00 a.m.
Locations: Teleconference and
City Council Chambers
751 Laurel St., Menlo Park, CA 94025
Special Session
A. Call To Order
Mayor Nash called the meeting to order at 10:04 a.m.
B. Roll Call
Present: Combs, Nash, Schmidt, Taylor, Wise
Absent: None
Staff: City Manager Justin Murphy, Assistant City Manager Stephen Stolte, City Attorney Nira Doherty, Assistant to the City Manager/ City Clerk Judi A. Herren C. Regular Business
C1. Annual City Council priority setting workshop (Staff Report #26-038-CC) City Manager Justin Murphy introduced the item.
Assistant City Manager Stephen Stolte and Assistant Administrative Services Director Fenny Lei made a presentation (Attachment).
City Council received clarification on tax ballot measures.
Sustainability Manager Rachael Londer continued the staff presentation (Attachment).
City Council discussed including all community-based organizations (CBOs) when scoping programs, the potential Neighborhood Services Manager position and food access. • Adrian Silva spoke in support of prioritizing infrastructure projects that benefit children. • Juan Pinzon spoke in support of prioritizing safe route implementation on Middlefield Road. • Pam Jones spoke on the Environmental Justice (EJ) Element anti-displacement item and the home electrification program.
• Meredith Rohr spoke on CBOs using local approaches to focus on legacy residents. • Savita Kini spoke in support of completing projects.
• Carol Orton spoke in support of prioritizing downtown vibrancy, housing and a focus on upgrading the main library.
• Shontelle Watkins spoke on the Belle Haven Farmers Market and in support of Belle Haven Action.
• Karen Grove spoke in support of existing priorities and including protections for vulnerable City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov communities.
• Shirley Chui spoke in support of prioritizing public safety. • Jesse Soto spoke in support of the home electrification program and prioritizing infrastructure maintenance, pollution reduction, landscaping and safe streets in Belle Haven neighborhood. • Jesus M. Soto spoke in support of the home electrification program, keeping Belle Haven pool public and replacing trees that cause allergies.
• Linda Itskonitz spoke in support of prioritizing public safety. • Jocelyn Anaya Galvan spoke in support of the existing priorities. • Sally Cole spoke in support of safe streets remaining as top priority. • Naomi Goodman spoke on mitigating impacts.
• Ross Silverstein spoke in support of safe routes, traffic mitigation, empowering staff and quick build projects.
• Ken Kershner spoke in support of prioritizing quick build bicycle and pedestrian project pilots. • Amy Mushlin spoke in support of prioritizing the quiet zone. • David Miller spoke in support of prioritizing public safety and assistance for the unhoused.
The City Council took a recess at 11:38 a.m.
The City Council reconvened at 12:08 p.m.
Assistant City Manager Stephen Stolte continued the staff presentation (Attachment).
The City Council received clarification on core functions/services versus priorities and climate action deliverables.
The City Council discussed public safety, the number of priorities, adding quality of life and planning and future funding, removing climate action, emergency and disaster preparedness, housing and safe streets from priority and retaining as cores services, staff vacancy rates and recruiting and retaining police department staff.
The City Council directed staff to agendize a study session on public safety.
The City Council removed emergency and disaster preparedness as a priority.
The City Council established the top five priorities (alphabetical order):
• Climate action – mitigation, adaptation and resilience • Downtown vibrancy
• Housing
• Public Safety
• Safe routes
D. Adjournment
Mayor Nash adjourned the meeting at 1:42 p.m.
Assistant to the City Manager/ City Clerk Judi A. Herren These minutes were approved at the City Council meeting April 28, 2026.
City Council Special Meeting Minutes
March 21, 2026
City Council PrioritySetting Workshop
March 21, 2026
C1-PRESENTATION City Council Special Meeting Minutes
March 21, 2026
Welcome and agenda
Welcome from Mayor Nash and city manager Murphy
Agenda:
- Fiscal year 2025-26 overview
- Financial update
- Environmental Justice (EJ) Element update
- Community input summary
- Public comment
- Top priorities for fiscal year 2026-27
- Ideas for Menlo Park centennial
City Council Special Meeting Minutes
March 21, 2026
Workshop ground rules
Actively listen
Stay present and engaged
Assume good intentions in others
Focus on the agenda to honor our time commitment
Seek shared citywide priorities through consensus building City Council Special Meeting Minutes
March 21, 2026
Bike rack
Not all items will be
discussed today due to our
focused agenda
Bike rack items will be
recorded for discussion at a
later time
City Council Special Meeting Minutes
March 21, 2026
Fiscal Year 2025-26
Overview
City Council Special Meeting Minutes
March 21, 2026
City Council work plan overview
City Council priorities work plan is developed with the fiscal year budget and updated routinely throughout the year
Many projects are multi-year
Fiscal year 2025-26 work plan includes 58 items
- 16% are complete
- 74% are in progress
- 22% are ongoing activities
City Council received updates in July 2025, October 2025, March 2026
City Council Special Meeting Minutes
March 21, 2026
Accomplishments mentioned by City Council
Sustainability advancements: Electrification and solar at City facilities, local code amendments
Zero emission landscape equipment ordinance implementation Safe routes projects: Coleman Avenue bike pilot and Middle Avenue Complete Streets Project
Advancement of multi-year projects (e.g. Chrysler Pump Station, BHCC microgrid, SAFER Bay design)
Strong partnership with service providers and other agencies through the Encampment Resolution Fund grant program
City Council Special Meeting Minutes
March 21, 2026
Accomplishments mentioned by City Council
Overall community engagement – Public Works open house, hosting students, improvements in communications and website content, public meetings accessibility policy
Emergency preparedness improvements
Launch of Citizen RIMS public safety data
Approval of Parkline development
Advancement of housing programs (e.g. anti-displacement study session)
Many successful community events
City Council Special Meeting Minutes
March 21, 2026
Challenges mentioned by City Council
Structural deficit and financial sustainability
Staff capacity; recruitment and retention issues
Infrastructure needs and level of community requests
Housing Element commitments
Higher efficiency
Public safety
Need to produce “shovel ready” projects for funding
New approaches to obtain funding
Communicating expectations for when projects/milestones will occur City Council Special Meeting Minutes
March 21, 2026
Staff vacancies
Citywide vacancy rate is 12.9%
Department vacancy rates:
- Administrative Service 6.8% (2 out of 29.48)
- City Manager’s Office 14.3% (2 out of 14)
- Community Development 19.1% (6.5 out of 34)
- Library & Comm Services 4% (2.75 out of 68.25)
- Police 19.2% (14 out of 73)
- Public Works 15.2% (11 out of 72.27)
City Council Special Meeting Minutes
March 21, 2026
Employee engagement survey
Launched survey in February
57% response rate; 216 of 380 employees (benefited and hourly) participated
Employees strongly agree their work makes a difference Employees feel people on their team care about them as a person
Opportunities to improve engagement:
- Prioritize employee well-being and a positive culture - Improve how organizational change is managed
City Council Special Meeting Minutes
March 21, 2026
Fenny Lei, Assistant Administrative Services Director
Financial Update
City Council Special Meeting Minutes
March 21, 2026
Topics
Economy and key financial challenges
Preliminary General Fund five-year forecast
Budget balancing strategies and impacts to forecast
Next steps
13 City Council Special Meeting Minutes
March 21, 2026
14 Economy and Key
Financial Challenges
City Council Special Meeting Minutes
March 21, 2026
Economy
15 3.50%
5.50%
4.40%
0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00%
San Mateo County
California
United States
Regional Unemployment
0.8%
3.6%
3.3%
1.9%
-0.6%
3.8%
4.4%
1.4%
Q1 '24 Q2 '24 Q3 '24 Q4' 24 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Annualized % Change
National Real Gross Domestic Product (GDP)
Unfolding conflict in the Middle East
leading to higher energy prices and
potential inflation
Real GDP growth slowed sharply
Declining Consumer Confidence Index and
Expectation Index
Comparatively weaker labor market in the
state (December 2025) with higher than
national unemployment rate (February
2026)
Potential state and federal funding
reductions
Recession risk
City Council Special Meeting Minutes
March 21, 2026
16 Vehicle License Fee
City Council Special Meeting Minutes
March 21, 2026
Vehicle License Fee (VLF) – Overview
17 2% VLF
$400
Assume $20,000
0.65% VLF
$130
Property tax
in-lieu of
VLF
$270
Educational
Revenue
Augmentation
Fund
(ERAF)
Pre-1999 Post-2004
State
City Council Special Meeting Minutes
March 21, 2026
ERAF – Overview
18 Educational
Revenue
Augmentation
Fund
(ERAF)
Property
Owners
County
property
tax pool
Schools Local
governments
ERAF State
State
ERAF
Local
government
property
taxes
More non-basic
aid schools
More basic aid
schools
Local
government
property
taxes
City Council Special Meeting Minutes
March 21, 2026
Vehicle License Fee – Shortfall
19 2% VLF
$400
Assume $20,000 value and 59% VLF shortfall
0.65% VLF
$130
VLF shortfall
$236 State backfilled only
2/3 of the shortfall,
$158
Amount owed to the City
but not guaranteed, $78
VLF Swap ERAF
$34
Pre-1999
City Council Special Meeting Minutes
March 21, 2026
Vehicle License Fee – Shortfall
20 $3.8 million VLF revenue shortfall across fiscal year 2023-24 and 2024-25
No VLF backfill proposed for FY 2024–25 in the Governor’s FY 2026–27 budget, despite $2 million assumed in our fiscal year 2026-27 budget
City needs to revise its VLF assumption to assume no backfill in fiscal year 2026-27 budget cycle
Budget reductions required to address the shortfall
Recommend pausing the community funding program
City Council Special Meeting Minutes
March 21, 2026
21 Other Financial Challenges
City Council Special Meeting Minutes
March 21, 2026
Capital Improvement Plan (CIP) –
Appropriation alignment
22 Several CIP funds, including the General CIP, Measure A and Transportation Impact Fee funds, have appropriations exceeding available fund balances, resulting in projected negative balances Staff is reviewing projects to better align planned expenditures with available funding
Further details will be provided at the CIP study session in May City Council Special Meeting Minutes
March 21, 2026
Funding for vehicles and equipment
Vehicle Replacement Internal Service Fund (ISF) contributions paused as part of budget strategy for the current fiscal year Vehicle ISF contributions were based on short-term
replacement estimates rather than a full lifecycle replacement schedule
Recent vehicle purchases will deplete fund balance
Need for a right-sized fleet replacement plan with a sustainable funding strategy to rebuild reserves and follow a multi-year replacement schedule
23 City Council Special Meeting Minutes
March 21, 2026
24 Preliminary General Fund
Five Year Forecast
City Council Special Meeting Minutes
March 21, 2026
Fiscal Year 2026-27 – Revenue and expenditure
25 City Council Special Meeting Minutes
March 21, 2026
Revenue forecast assumptions
Property tax and sales tax projections based on consultant reports Fee-related revenue and enterprise overhead based on the current fee schedule, subject to change with the new cost of service study $1M annual transfer from Developer Special Revenue Fund (Fund 111) through FY 2030-31, with reevaluation planned in FY 2029-30 VLF shortfall projected based on prior-year County estimates and assumed 2/3 state backfill
Successor agency debt is paid off by Dec. 31, 2029
26 City Council Special Meeting Minutes
March 21, 2026
Redevelopment Agency (RDA)
RDAs used tax increment financing; property owners always paid the same 1% under Proposition 13
RDAs dissolved in 2012; successor agencies only retire existing obligations
Tax increment flows through Redevelopment Property Tax Trust Fund (RPTTF) to pay debts; remaining funds distributed to local agencies
Menlo Park currently receives ~$2.7M annually in passthrough; normal apportionment resumes after 2029 obligations paid Estimated additional revenue to City after successor agency payoff:
~$900K/year
27 City Council Special Meeting Minutes
March 21, 2026
Redevelopment Agency (RDA)
28 City Council Special Meeting Minutes
March 21, 2026
Expenditure forecast assumptions
Vacancy factor at 10% in fiscal year 2026-27, decreasing 2% annually until holding steady at 6%
Personnel costs increase 3% annually
New assumptions:
Eliminated the operating factor to align with best practices and improve budget transparency, addressing issues identified at mid-year
$1.7 million contribution towards Vehicle ISF
General Fund contribution to General CIP remains flat year over year
29 City Council Special Meeting Minutes
March 21, 2026
Structural deficit (no additional budget strategies)
30 Average $8 million
annual structural deficit
80 85
90 95
100
105
110
FY26-27 Proposed FY27-28 Forecast FY28-29 Forecast FY29-30 Forecast FY30-31 Forecast Millions
Base Scenario
Total Revenues Total Expenditure
City Council Special Meeting Minutes
March 21, 2026
Fund balance forecast
31 24
15 6
3 3
-
5 10
15 20
25 30
FY26-27 Proposed FY27-28 Forecast FY28-29 Forecast FY29-30 Forecast FY30-31 Forecast Millions
General Fund Reserve Depletion
Spendable fund balance is 0
Below minimum
reserve recommended
by GFOA, Emergency
contingency depleted
Unassigned
depleted
City Council Special Meeting Minutes
March 21, 2026
General Fund Reserve Policy
32 Reserve
Category
Reserve Policy
%
Required
Reserve Level
as of 6/30/2025
Available
Reserve as of
6/30/2025
Over/(Short)
Emergency
contingency
reserve
15-20% of
General Fund
operating
budget
12.6 10.4 (2.2)
Economic
stabilization
reserve
20-25%
General Fund
operating
budget
16.8 13.9 (2.9)
Strategic pension
reserve
25% of surplus 0.7
Menlo Park currently holds a AAA credit rating from Moody’s and Fitch City Council Special Meeting Minutes
March 21, 2026
33 Budget Balancing
Strategies
City Council Special Meeting Minutes
March 21, 2026
Recommendations
Update fees and overhead allocation per cost of services study and align with cost recovery policy
Implement efforts for improved business license compliance Reduce department operating budgets to better align with available funding
Targeted position hiring
Explore future revenue-generating measures
34 City Council Special Meeting Minutes
March 21, 2026
Cost of Services Study
No CPI adjustments for fees in last seven years, resulting in a growing gap between service costs and revenue
Study session on March 24
Master fee schedule public notice to be published on April 10 Public hearing on April 28
35 City Council Special Meeting Minutes
March 21, 2026
Recommendations for Fiscal Year 2026-27
36 Surplus/(Deficit)
Fiscal year 2026-27 projection (6,975,652)
Update Master Fee Schedule based on new cost
of services study
3,500,000
Reduce department budgets 1,500,000
Reduce General Fund transfer to capital projects 1,000,000 Incorporate cost allocation plan overhead charges
into the Water Operation Fund
350,000
Improve business license compliance 140,000
New Deficit (485,652)
These recommendations help reduce the projected General Fund deficit All amounts are estimated based on current assumptions City Council Special Meeting Minutes
March 21, 2026
Structural deficit (with recommendations)
37 80
85 90
95 100
105
FY26-27 Proposed FY27-28 Forecast FY28-29 Forecast FY29-30 Forecast FY30-31 Forecast Millions
Updated with Recommendations
Total Revenues Total Expenditure
Average $1.8 million
annual structural deficit
City Council Special Meeting Minutes
March 21, 2026
Business License Tax
Business License Tax structure unchanged since 1978
Cities in San Mateo other nearby cities have recently passed Business License Tax measures successfully
38 City Measure passed Projected revenue
Foster City Measure V, 2024 ~$2M
Redwood City Measure BB, 2024 ~$3M
South San Francisco Measure W, 2024 ~$2M
Union City Measure QQ, 2024 ~$2M
Santa Clara Measure H, 2022 ~$6M
City Council Special Meeting Minutes
March 21, 2026
Structural Deficit (with Business License Tax)
39 80
85 90
95 100
105
110
FY26-27 Proposed FY27-28 Forecast FY28-29 Forecast FY29-30 Forecast FY30-31 Forecast Millions
Recommendations and Business License Tax
Total Revenues Total Expenditure
~$1.5 million structural deficit
until new business license tax
measure adopted in 2028
$1.7 million surplus beginning
FY2030-31
City Council Special Meeting Minutes
March 21, 2026
Other revenue generating measures
Half cent sales tax measure
Utility user tax (reauthorization)
Special parcel tax
Debt issuance for infrastructure projects
40 City Council Special Meeting Minutes
March 21, 2026
41 Next Steps
City Council Special Meeting Minutes
March 21, 2026
Next steps
Budget principles April 14
Public budget workshop May 28
Public hearing June 9
Budget adoption June 23
42 City Council Special Meeting Minutes
March 21, 2026
Rachael Londer, Sustainability Manager
Environmental Justice (EJ)
Element
City Council Special Meeting Minutes
March 21, 2026
EJ Element – Agenda
Background
Community-identified priorities
Fiscal year 2025-26 highlights
Implementation plans for fiscal
year 2026-27
Program EJ7.L: The City Council
shall consider the communityidentified environmental justice priorities during its annual priority
and goal setting workshop.
City Council Special Meeting Minutes
March 21, 2026
Background
Sept. 2024: Adopted first General Plan
EJ Element focused on the Belle Haven
and Bayfront neighborhoods
The EJ Element:
- Identified underserved communities
- Undertook extensive outreach
- Developed a policy and reporting framework
to address EJ needs (Action Guide)
- Seeks to address/improve social
determinants of health
City Council Special Meeting Minutes
March 21, 2026
Community-identified priorities
Priority #1:
Provide safe, sanitary, and stable
homes
Priority #2:
Promote access to high quality and
affordable food
Priority #3:
Reduce pollution exposure and
improve air quality Community members enjoying a meal at the Black Liberation Month Celebration, Feb. 7
City Council Special Meeting Minutes
March 21, 2026
Implementation approach
Collaborate across City
departments with support from
community-based organizations
Provide annual progress report –
Planning Commission and City
Council
Scope funding opportunities for
priority programs and actions
City staff, May 2025
City Council Special Meeting Minutes
March 21, 2026
Webpage: menlopark.gov/EJElement
City Council Special Meeting Minutes
March 21, 2026
Fiscal year 2025
-26 highlights
Continuing development of the
Anti-Displacement Strategy
Hosting outreach events with
housing resources
Collaborating with nonprofits
and supporting veterans
Planting trees and contracting with non-profit tree planting partner
Students at
Beechwood
Elementary
School plant
trees alongside
the Mayor in
honor of Arbor
Day, April 26
City Council Special Meeting Minutes
March 21, 2026
Fiscal year 2025-26 highlights
Implementing the Climate Action
Plan with air quality education and
outreach
Providing equitable access to
Belle Haven Community Campus
(BHCC) programs
Meeting people where they are
with City Council and Commission
meetings at the BHCC
Offering interpretation for City
Council meetings
Home Upgrade Services Program workshop
hosted in Spanish
City Council Special Meeting Minutes
March 21, 2026
Looking forward:
Provide safe, sanitary, and stable homes
Housing
resource
fair, 2024
Present an Anti-Displacement
Strategy
Host a housing and neighborhood
resource fair May 16
Construction expected to begin for
school district employee rental
housing project at 320 Sheridan Dr.
Construction expected to begin on
low-income homeownership project
at 335 Pierce Rd.
Habitat for
Humanity
volunteer
day at 335
Pierce Rd.,
Oct. 2025
City Council Special Meeting Minutes
March 21, 2026
Looking forward:
Promote access to high quality and affordable food
Nutrition education at Love Our Earth Festival,
2023
Evaluate the Environmental
Quality Commission’s
recommendations
Neighborhood services
manager position could
support outreach regarding
food assistance programs
City Council Special Meeting Minutes
March 21, 2026
Looking forward:
Reduce pollution exposure & improve indoor air quality
Implement the City’s Climate
Action Plan
Collaborate with partners for
electrification
Electrify the Belle Haven Child
Development Center
Plant trees while continuing to
pursue an urban forest
management plan
Belle Haven Community Development
Fund team speaking at the Menlo Park
Senior Center lunch and learn, Jan. 2026
City Council Special Meeting Minutes
March 21, 2026
Next steps
Annual progress report
review
- March 23, Planning
Commission
- March 24, City Council
Feedback on EJ priority 2:
promote access to high
quality and affordable food
Home electrification workshop hosted in partnership
with Climate Resilient Communities and Peninsula
Clean Energy, Jan. 30, 2026
City Council Special Meeting Minutes
March 21, 2026
City Council Priority Setting Workshop
The City Council will return after a
brief 15 minute recess.
City Council Special Meeting Minutes
March 21, 2026
Community Input
City Council Special Meeting Minutes
March 21, 2026
Community input summary
361 responses to online feedback form
157 (43%) support current priorities, 184 (51%) indicate current priorities do not still apply
Additional support for top priorities:
- Downtown vibrancy: 87
- Emergency and disaster preparedness: 18
- Safe routes: 17
- Housing: 11
- Climate action – mitigation, adaptation, and resilience: 8 Additional topics mentioned by respondents
- Crime prevention (cameras/ALPRs, patrols, burglary prevention): 87 - Ceasing downtown affordable housing project: 66
- Revisiting high density housing sites: 54
City Council Special Meeting Minutes
March 21, 2026
Topic No. of
respondents
1 Downtown vibrancy 244
2 Emergency and disaster preparedness 175
3 Safe routes 174
4 Housing 171
5 Climate action - mitigation, adaptation and resilience 165 6 Public safety 112
crime prevention (cameras/ALPRS, patrols, burglary prevention) 87 traffic enforcement (e-bike and vehicle) 14
ICE/CBP restrictions and community protections 11
terminate use of Flock cameras 10
7 cease downtown redevelopment/housing 66
8 revisit high-density housing sites 54
9 Dumbarton rail bus line (SamTrans) 30
10 pickleball (additional/permanent/maintenance/upgrades) 22 11 maintenance of trees, trails, parks, greenspace/fields, tennis/pickleball courts 19 12 transportation/traffic mitigations (flow, access, routes, public transit) 18 13 main library improvements and increased hours 15
14 infrastructure maintenance and repair 13
Community input analysis
Community input analysis
City Council Special Meeting Minutes
March 21, 2026
Public Comment
City Council Special Meeting Minutes
March 21, 2026
Priority Setting for Fiscal
Year 2026-27
City Council Special Meeting Minutes
March 21, 2026
Overview of priority setting
Select top four to five priorities
Acknowledge City operations and delivery of basic services is the primary focus for majority of City staff
Elevate top priorities in City communications to tell our story as a community
Use top priorities to inform budget development and create a City Council priorities work plan
Ensure ongoing transparency and reporting on progress City Council Special Meeting Minutes
March 21, 2026
Current fiscal year 2025-26 priorities
Climate action – mitigation, adaptation, resilience
Downtown vibrancy
Emergency and disaster preparedness
Housing
Safe routes
Website: menlopark.gov/priorities
City Council Special Meeting Minutes
March 21, 2026
Bike rack items from 2025
City workforce – staffing, vacancies and retention
Economic development support citywide
Overall communications/engagement
Parking enforcement throughout the city (downtown, overnight, etc.)
Services to support youth and youth engagement
Substandard lots requirements
Traffic enforcement throughout the city
Use of union labor in development projects
City Council Special Meeting Minutes
March 21, 2026
City Council discussion:
Fiscal year 2026-27 priorities
Do current priorities still apply?
Should any priority be removed?
Should a new priority be added?
City Council Special Meeting Minutes
March 21, 2026
Menlo Park Centennial
Judi A. Herren, Assistant to the City Manager/ City Clerk City Council Special Meeting Minutes
March 21, 2026
Centennial 2027 planning
Centennial activities integrated into existing City events - December 2026 – November 2027
- Seven events throughout the year
Collaboration with community partners
- Menlo Park Historical Association
- Local businesses
- Community groups
Centennial event in November 2027
Additional details will be provided in August
City Council Special Meeting Minutes
March 21, 2026
Next steps
Final workshop report
Fiscal year 2026-27 work plan
Fiscal year 2026-27 budget development based on top
priorities and EJ Element
Menlo Park priorities webpage
City Council Special Meeting Minutes
March 21, 2026
Thank you!
City Council Special Meeting Minutes
March 21, 2026