Budget Overview
Proposed FY 2026-27 Budget
and 2027-2031 Five-Year CIP
Financial Services Department
May 19, 2026
2 Overview
• Budget Themes
• General Fund Summaries
• Capital
• Budget Calendar
• Recommendations
Budget Themes
Immediate Impact • Revenue/ Fee updates • Near-term cost management • Limited priority program changes Looking Forward • Revenue modernization • Longer term cost management • Insurance • CalPERS 3 GF Summary with Recommendations
4 Estimated Beginning Fund Balance $1,385,358
Operating Budget
Proposed Revenues & Transfers In 125,358,157
Proposed Expenditures & Transfers Out (127,929,960)
(2,571,803)
Decision Packages (net)
Recommended Decision Packages Ongoing 2,162,633
Recommended Decision Packages One-Time (421,300)
1,741,333
Structural Operating Budget Excess/(Deficit) (830,470)
Additional Payments & Sources of Funds
Vacancies 2,941,535
Unfunded Accrued Liability (3,496,423)
Additional Payments Excess/(Deficit) (554,888)
Estimated Year-End General Fund Balance with Recommendations $0 General Fund Revenues
5 Revenue Type Proposed
FY 2026-27
Increase / (Decrease) over
Midyear FY 2025-26
$ %
Property Tax 39,787,247 1,164,706 3%
Sales and Use Tax 11,200,000 200,000 2%
Transient Occupancy Tax 8,213,000 (353,274) (4%)
Property Tax in Lieu of LVF 11,005,773 392,270 4%
Utility Users Tax 9,468,938 435,312 5%
Property Transfer Tax 2,678,731 - 0%
Other Taxes 4,098,930 (67,190) (2%)
Total Tax Revenue $86,452,619 $1,771,824 2%
Non-Tax Revenue 42,437,217 339,321 1%
Transfers In 681,229 (6,721,899) (91%)
Total General Fund Revenue $129,571,065 ($4,610,754) (3%) General Fund Expenditures
6 Expenditure Type Proposed
FY 2026-27
Increase / (Decrease) over
Midyear FY 2025-26
$ %
Personnel 69,849,856 1,583,077 2%
Maintenance & Operations 12,932,148 (1,951,259) (13%)
Internal Services 35,056,395 (9) 0%
Capital Outlay 40,000 (164,037) (80%)
Subtotal Expenditures 117,878,399 (2,115,305) (2%)
Transfers Out 12,523,137 (5,114,205) (29%)
Structural Expenditures & Transfers Out 130,401,535 (5,646,434) (4%) Vacancies (One-Time) (2,941,535) - -
Unfunded Accrued Liability (UAL) 3,496,423 (106,513) (3%) Total General Fund Expenditure 130,956,423 (8,694,482) (6%) 7 Decision Packages
Proposed Decision Packages Net Amount
Proposed Decision Packages Ongoing (net) 2,162,633
Proposed Decision Packages One-Time (net, excluding Vacancies) (421,300) Proposed Vacancies 2,941,535
Net General Fund Impact $4,682,868
• Total 32 Decision Packages, 21 directly impacting the General Fund • Proposed Fee updates/Vacancies generate net benefit
• Operational changes to support organizational goals
• CS/WED Director Merge
• Community Services Analyst
• Special Event Fees
• Essential Services Funded
• Police Technology and training
• Crossing Guards
Capital Projects Summary
8 Type Amount
($ millions)
FY 2026-27
New 130.3
Carryover 69.1
Total $199.4
Total # of Projects 89
FY 2025-26 Projections
Amount Spent $16.5
Project Progress
Completed 28
Designed/ Awarded 25 Sewer, 3
Street, 33
General Improvement, 9
Drainage, 6
Waterfront, 7
Park, 11
Public Facility, 20
FY 2026-27
Capital Projects by Category
Budget Calendar
City Council
• May 19 – Budget & CIP Introduction
• June 2 – Operations Focus
• June 9 – CIP Focus
• June 16 –Budget & CIP Adoption
Other Meetings
• Planning Commission (May 21)
• Budget and Finance Commission (May 26, June 11)
9 Recommended Actions
1. Receive and File the Proposed Operating Budget and Five-year Capital Improvement Program Documents
2. Direct staff regarding any additional Budget Response Reports
3. Set June 2, 2026 as the Date to Conduct a Public Hearing on the FY 2026-27 Operating Budget and 2027-2031 Five-Year Capital Improvement Program
10