Budget Hearing
Proposed FY 2026-27 Budget
and 2027-2031 Five-Year CIP
-Operations Focus
Financial Services Department
June 2, 2026
Overview
• General Fund Summary
• Decision Package Highlights
• Budget Response Reports
• Budget Calendar
• Recommendations
2 GF Summary with Recommendations
3 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 4 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 5 • DP #2 Parking Meter Fee Increase
• $2.25/ hour reflecting Council direction during FY 2025-26 Budget • Applies citywide
• Estimated $340,000 GF, $46,000 Tidelands, $223,000 Uplands • DP #3 Special Event Street Use Fee
• Assigns a per mile cost for exclusive use of public right of way • Consistent with similar special events fees in other cities • Estimated $96,000 GF
• DP #5 Community Development Fee Increases
• Based on fee study presented to Council on March 17, 2026 • Offsets existing costs not recovered under current structure • Estimated $1.1 million GF
Decision Package Highlights
6 • DP #20 Police Technology, Equipment, Training
• Funds Drone as a First Responder (DFR) Program and required training
• Ongoing $95,000; one-time $25,000 GF
• DP #24 Fire coaching and wellness service
• Continues successful specialized coaching to support firefighter health and strengthen ability to serve the community
• One-time $12,800 GF, offset by prior year donation
• DP #28 Contract Building Plan Review
• Continues successful program to pace of building plan check review
• Based on estimated development activity
• Estimated $0.7 million GF net increase
Decision Package Highlights
7 • DP #30 Waterfront/ Community Services Director
Reorganization
• Streamlines waterfront activity management and oversight • Estimated ongoing $125,000 GF savings
• DP #32 Flexible Hiring Freeze
• One-time measure to manage costs
• Anticipates selective hiring
• Approximately 5% across funds with full-time staffing • One-time savings $2.9 million GF, $0.8 million other funds Decision Package Highlights
Budget Response Reports
• 46 Budget Response Reports
• 18 included for this discussion
• Remainder targeted for June 9, 2026
8 Budget Calendar
City Council
• June 9 – CIP Focus
• June 16 –Budget & CIP Adoption, Fees, Gann Limit
Other Meetings
• June 11 - Budget and Finance Commission
9 Recommended Actions
1. Open Public Hearing
2. Conduct Operating Budget Q&A
3. Take Public Comment
4. Direct staff regarding any additional Budget Response Reports
5. Continue Public Hearing to June 9, 2026
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