June 9, 2026
City Manager's Office
Finance Department
DATE: June 9, 2026
TO: Mayor Martinez and Members of the City Council
FROM: Shasa Curl, City Manager
Nickie Mastay, Deputy City Manager, Internal Services
LaShonda White, Deputy City Manager, Community
Services
Emily Combs, Director of Finance
Mubeen Qader, Deputy Director of Finance
Antonio Banuelos, Accounting Manager
Jerry Gurule, Accounting Manager
Subject: Budget Study Session on Proposed Fiscal Year 2026-27 Operating Budget and Fiscal Year 2026 -31 Five -Year
Capital Improvement Plan
FINANCIAL IMPACT: There is no financial impact to receiving this report.
PREVIOUS COUNCIL
ACTION:
On May 5, 2026, the City Council received the first draft of the Fiscal Year (FY) 2026-27 Annual Operating Budget
and Fiscal Year 2026-31 Five-Year Capital Improvement
Plan (CIP) and received initial departmental presentations.
On May 19, 2026, the City Council received additional
departmental presentations and updates on global market conditions. On May 26, 2026, the City Council received
further departmental presentations, the General Fund
Five-Year Forecast, and the full FY 2026-31 CIP.
STATEMENT OF THE
ISSUE:
The City Council requested a special meeting focused on the draft Fiscal Year 2026-27 Annual Operating Budget
and Fiscal Year 2026-31 Five-Year Capital Improvement
Plan (CIP) to provide additional direction before final adoption on June 23, 2026.
AGENDA
REPORT
Attachment 1 - June 9, 2026, Budget Study Session Staff Report
June 9, 2026
RECOMMENDED ACTION: RECEIVE an overview of the balanced draft Fiscal Year 2026-27 Annual Operating Budget and Fiscal Year 2026-
31 Five-Year Capital Improvement Plan Budget;
PROVIDE DIRECTION to staff prior to final budget
adoption; and RECEIVE input on City Council key
initiatives and demands for built environment
improvements as well as opportunities to improve
organizational efficiency – City Manager’s Office/Finance Department (Shasa Curl/Emily Combs/Mubeen Qader
510-412-2077).
DISCUSSION:
Strategic Budget Framework: Service Continuity, Organizational Excellence, and Fiscal Sustainability
As the City Council continues its review of the proposed Fiscal Year 2026-27 Operating Budget and Fiscal Year 2026-31 Capital Improvement Plan, City staff recommends evaluating the budget through the lens of a sustainable baseline budget framework. A baseline budget reflects the resources necessary to maintain core services, fulfill operational and legal obligations, and ensure continuity of service to the community.
Within that framework, the proposed budget prioritizes service quality, organizational stability, and long-term sustainability while balancing community expectations with available resources. City staff remains focused on developing a healthy workplace culture that supports employee retention, accountability, innovation, and organizational excel
lence, recognizing that a high-performing workforce is essential to delivering high- quality public services. As the City operates in an increasingly complex environment marked by rising costs and evolving regulations, City staff are dedicated to improving standard operating procedures, leveraging innovation and technology to enhance efficiency, and aligning resources with adopted City Council priorities. These efforts are intended to support a high-performing organization, improve service delivery, preserve fiscal stability, and better meet the evolving needs of the Richmond community.
Proposed City-wide Priorities – FY 2026-27
The FY 2026–27 budget reflects a focused set of proposed City-wide priorities aimed at maintaining critical infrastructure, improving service delivery, and responding to community needs. The following priorities highlight key areas of investment and operational focus that will guide resource allocation and departmental efforts in the coming fiscal year.
Priority #1: Wastewater System Reliability & Veolia Contract Transition The current Veolia wastewater contract expires in May 2027. Following a City- commissioned review of long-term options, the City is moving forward with a competitive procurement process with an owner’s advisor. This effort aims to secure a qualified Attachment 1 - June 9, 2026, Budget Study Session Staff Report
June 9, 2026
operator, address past performance concerns, and prepare for an anticipated increase in operating costs under the next contract.
Priority #2: Parks Renovation, Maintenance, and Community Access Improving Richmond’s parks and open spaces remains a core City-wide priority for FY 2026-27. The City is making significant progress advancing park-related capital and maintenance needs, renovations of play structures, restroom assessments, and upgrades to lighting, fencing, and recreation facilities. In addition, major improvements are underway at Boorman Park, Wendell Park, and Shields-Reid Park. It is essential that as the City renovates or builds new parks, adequate resources are available to properly maintain those assets at a high quality for the continued benefit of Richmond residents. These ongoing efforts demonstrate strong community demand for safe, modern, and accessible parks.
In FY 2026-27, the City will continue prioritizing park infrastructure upgrades, addressing deferred maintenance, advancing key capital projects, and enhancing the quality and usability of neighborhood parks across Richmond.
Priority #3: Innovation & City-wide Systems Modernization In FY 2026-27, the City will advance innovation through streamlined systems, improved processes, and data-informed, efficient service delivery.
Priority #4: Advanced Life Support (ALS) First Responder Services & Fire Department Infrastructure
Improving emergency medical response and ensuring residents have timely access to life-saving care is a key City-wide priority for FY 2026-27. The City continues to advance implementation of Advanced Life Support (ALS) First Responder Services, supporting the City Council’s goals of improving public safety, advancing health equity, and enhancing emergency preparedness.
Implementation of ALS services will require ongoing investments in staffing, equipment, training, and fire station infrastructure. Given the operational and capital costs associated with ALS deployment, the City must carefully evaluate funding strategies and prioritize available resources to support long-term sustainability.
In FY 2026-27, the City will continue advancing ALS implementation planning, evaluating funding options, and identifying sustainable approaches to support both operational and facility needs while maintaining essential City services.
Fiscal Year 2026-27 Budget Development and Proposed Options Earlier in the Fiscal Year (FY) 2026-27 budget development process, City staff hosted three community budget meetings in April, including a presentation to the Richmond Neighborhood Coordinating Council (RNCC). The first draft of the FY 2026-27 Operating Budget and FY 2026-31 Capital Improvement Plan (CIP) were presented to Attachment 1 - June 9, 2026, Budget Study Session Staff Report
June 9, 2026
the City Council on May 5, 2026. This was followed by additional budget updates and departmental presentations on May 19 and May 26, 2026.
This Special Budget Study Session provides the City Council with an opportunity to review the remaining components of the FY 2026-27 Operating Budget and the FY 2026-31 CIP before final adoption. The City continues to operate in a dynamic environment that requires the organization to implement adopted plans, respond to local needs, state mandates, broader national conditions, and remain attentive to global conditions that influence service delivery and resource availability. Additional disruptors, including rising costs, increasing funded and unfunded regulatory requirements, and changing dynamics and expectations associated with the full transition to district -based
representation, create opportunities to improve organizational efficiency and sustain programs within the existing baseline budget.
City staff continue to present a balanced budget for the City Council’s consideration, with General Fund revenues and expenditures totaling $274,670,119. As a reminder, this budget is balanced using a 12 percent vacancy rate and does not include over $29 million in department requests. While City staff understand there are important requests, community needs, etc., that are being considered, it is essential to note that any new requests will require a corresponding decrease in expenditure. To support clear decision-making, City staff are presenting two options for City Council consideration.
Option 1:
Adopt the Proposed Balanced Budget with No Changes and Maintain Service Levels
The City Council may elect to proceed with the proposed FY 2026-27 budget as presented. This option maintains existing service levels and continues all currently funded key initiatives. The FY 2026-27 General Fund budget presented on May 5, May 19, and May 26, 2026, is balanced under current assumptions, including a City-wide vacancy rate of 12 percent ($16.4 million). The budget maintains all existing operational, community, equity, and public safety investments and does not rely on the use of General Fund reserves to support ongoing operations, consistent with the City’s Reserve Policy, which limits the use of reserves to one-time emergencies. Maintaining a structurally balanced General Fund without drawing upon reserves supports fiscal stability.
Option 2:
Maintain a Balanced Budget While Reprioritizing City Council Initiatives The City Council may elect to maintain the proposed balanced budget while reprioritizing existing City Council priorities and initiatives. Under this option, the City Council may refine policy direction regarding existing initiatives and identify activities that may be deferred or discontinued to maintain a balanced budget.
For example, there is approximately $3.0 million in discretionary funding for City Council priorities that could be redirected towards the built environment or other high-priority needs if the City Council elects to reprioritize resources. Since the budget is dynamic and always changing, additional project budget shortfalls have recently emerged. These include the Richmond Wellness Trail Phase II Project, Attachment 1 - June 9, 2026, Budget Study Session Staff Report
June 9, 2026
improvements at Shields-Reid and Wendell Parks, and the San Francisco Bay Trail at Point Molate Project. City Council may consider these identified shortfalls when evaluating potential modifications to approximately $3.0 million in discretionary funding for City Council priorities.
City Council Goals and Priorities
City Council's Goals and Priorities outline key initiatives and strategic objectives that guide the City's growth and improve the quality of life for all residents. The City Council's vision focuses on creating a thriving, inclusive community through transparency and targeted actions that address immediate and long-term needs. These priorities shape decision-making and provide a framework for aligning resources and work efforts across the City.
City Council-Directed Work Efforts
To assist the City Council in evaluating potential reprioritization opportunities, Table 1 summarizes 37 City Council-directed efforts and initiatives identified in open session from January 1, 2025, to the present. The list below does not include requests from Councilmembers that are developed via boards, commissions, ad hoc committees, task forces, email, or meetings with the City Manager and staff members.
Table 1: Summary of City Council-Directed Work Efforts (January 1, 2025 – Present) Blue = Complete # Council-Directed Work Effort Strategic Goal Area
1 Tiny Home Village Support Services (Hope Solutions) Goal 1 – Improve the Quantity and Quality of Housing
2 Wildfire Preparedness Ad Hoc Committee &
Assessment
Goal 4 – Improve Public Safety
3 Human Trafficking and Gender-Based Violence
Prevention Initiatives
Goal 4 – Improve Public Safety
Attachment 1 - June 9, 2026, Budget Study Session Staff Report
June 9, 2026
# Council-Directed Work Effort Strategic Goal Area
4 Healthy Retail (HOPS) Ordinance Goal 3 – Improve the Quality of Life and Community Health
5 Municipal ID Program Expansion Goal 3 – Improve the Quality of Life and Community Health
6 Immigrant Legal Services Funding & RFP Goal 1 – Improve the Quantity and Quality of Housing
7 Unfunded Pension & OPEB Liability Analysis Goal 5 – Strengthen the City's Internal Infrastructure
8 Tree Wells in CIP Sidewalk Projects Goal 6 – Address Shoreline and Ecological Issues
9 Parchester Village–Giant Highway Infrastructure Master Plan
Goal 5 – Strengthen the City's Internal
Infrastructure
10 Fireworks Enforcement and Ordinance Amendments Goal 4 – Improve Public Safety 11 Ciclovia Program Design & Implementation Goal 6 – Address Shoreline and Ecological Issues
12 Community-Led Bus Stop Bench Program Goal 6 – Address Shoreline and Ecological Issues
13 Harbour 8 Park Expansion Funding & Oversight Goal 3 – Improve the Quality of Life and Community Health
14 Black Resiliency Project & Fund Goal 3 – Improve the Quality of Life and Community Health
15 Clean Richmond Community Maintenance Crew Pilot
Program
Goal 5 – Strengthen the City's Internal
Infrastructure
16 Historic Buildings Preservation & Protection Program Goal 5 – Strengthen the City's Internal Infrastructure
17 Unhoused Services RFP Process Reform Goal 1 – Improve the Quantity and Quality of Housing
18 Ban Corporate Land Grabs Initiative and Associated
Legal Analysis
Goal 5 – Strengthen the City's Internal
Infrastructure
19 Hilltop Horizon Specific Plan Goal 5 – Strengthen the City's Internal Infrastructure
20 Police Communication, Body Camera, and Counseling
Policy Review
Goal 4 – Improve Public Safety
21 Public Lands Policy Goal 2 – Increase Revenue and Improve Economic Development
22 Emergency Support for Families During School Labor
Disruption
Goal 5 – Strengthen the City's Internal
Infrastructure
23 Arts & Culture Manager and Grant Process Reform Goal 3 – Improve the Quality of Life and Community Health
24 Council Liaison Appointment Cycle Change
Goal 5 – Strengthen the City's Internal
Infrastructure
25 Polluters Pay Settlement / Limited-Term Revenue
Community Engagement and Strategic Advisory
Services
Goal 2 – Increase Revenue and Improve
Economic Development
26 ICE-Free Zone Ordinance and Civil Immigration
Enforcement Policy
Goal 5 – Strengthen the City's Internal
Infrastructure
27 Safe Walk Zone Ordinance (23rd Street Corridor) Goal 4 – Improve Public Safety 28 AAPI Community Celebration Co-Sponsorship Goal 3 – Improve the Quality of Life and Community Health
29 WCCUSD Latino/x Graduation Auditorium Support Goal 3 – Improve the Quality of Life and Community Health
30 Support for 2026 Mother's Day Event at the Richmond
Memorial Auditorium
Goal 3 – Improve the Quality of Life and
Community Health
31 Blue Envelope Program Goal 4 – Improve Public Safety Attachment 1 - June 9, 2026, Budget Study Session Staff Report
June 9, 2026
# Council-Directed Work Effort Strategic Goal Area
32 Caste Equity Resolution & Ordinance Amendment Goal 5 – Strengthen the City's Internal Infrastructure
33 Cheese Park (La Moine Park) Improvements Plan Goal 3 – Improve the Quality of Life and Community Health
34 Pullman Neighborhood Park & Land Acquisition
Feasibility
Goal 3 – Improve the Quality of Life and
Community Health
35 Earthquake Preparedness Initiative Goal 4 – Improve Public Safety 36 Richmond Promise Postsecondary Education Initiative Goal 3 – Improve the Quality of Life and Community Health
37 Literacy Space at Richmond Public Library Goal 3 – Improve the Quality of Life and Community Health
As part of the budget review, the City Council may evaluate the 104 boards, commissions, ad hoc committees, LLCs, and regional agencies, all of which require staff time for agenda preparation or briefing (prep documents), public noticing, meeting support, and follow-up. Upon completion of the ad hoc committee currently being established to review the City Council Rules of Procedure and Order, the City Council may want to consider the status of these bodies.
In addition, a workflow is required to improve and structure communication between the City’s boards, commissions, ad hoc committees, LLCs, regional agencies, etc., the City Council, the City Manager, and her designees to support efficient operations and aligned implementation of City Council goals and priorities in an agreed-upon sequence.
Existing Discretionary General Fund Commitments Available for Reallocation Under Option 2
As the City Council considers new priorities, initiatives, or service expansions, it faces difficult decisions and unavoidable trade-offs within a constrained General Fund budget.
To support City Council deliberation under Option 2, City staff have consolidated various programs, initiatives, subsidies, and operational commitments that are supported by the General Fund, as referenced in the May 5, May 19, and May 26, 2026, budget reports. The allocations listed in Tables 2 and 3 below represent approximately $6.4 million that may be reappropriated incrementally or redirected if the City Council determines that new priorities outweigh previous requests. For purposes of this discussion, initiatives listed as “discretionary” do not reflect the value of these programs.
Rather, discretionary funding is defined as funding that is not tied to existing City obligations, approved agreements, permanent full-time staff positions, or the resources necessary to support core City operations.
City staff thus far were unable to identify other significant General Fund resources that could be reallocated without affecting core municipal operations. However, all suggestions are welcome. As a result, the funding included in Tables 2 and 3 provides an overview of the discretionary and programmatic areas that may be considered for further refinement under Option 2.
Attachment 1 - June 9, 2026, Budget Study Session Staff Report
June 9, 2026
Key Initiatives Included in the FY 2026-27 Budget
Table 2 summarizes approximately $3.1 million in existing discretionary General Fund commitments that the City Council may consider for reprioritization. These allocations support a variety of programs, initiatives, and operational commitments that reflect prior policy direction.
Table 2: Key Initiatives Included in the Budget
Initiative Amount
($)
Consideration Program Status Reallocation
Consideration
Arts Corridor (Phase 2) 185,000 Phase 2 not started;
Phase 1 (Strategic
Plan and community
engagement)
nearing completion
Discretionary
Black Resiliency
Project
1,500,000 Consider Multi-
Year funding
strategy
RFP is being
finalized for release
in May 2026
Discretionary
Community
Engagement – Limited-
Term Revenue
300,000 Staff is negotiating
contract with
selected consultant
Discretionary
Gender-Based
Violence Programs
100,000 RFP in development Discretionary
Immigration Services 700,000 Consider Multi-
Year funding
strategy
Contracts with
multiple vendors are
executed and
community is
accessing services
Discretionary (Note:
Contracts are
executed for the full
amount)
Mental Health
Assessment
150,000 Staff is negotiating
contract with
selected consultant
Discretionary
Point Molate Annual
Maintenance
250,000 Required
maintenance of City
owned property is
ongoing.
Remediation of all
properties is
required.
Requirement under
the City’s existing
agreement -
Agreement for Short
Term Maintenance
and Security of
Property at Point
Molate, with
additional
remediation costs
anticipated. The City
Council may consider
directing staff to
pursue cost sharing
discussions with the
East Bay Regional
Park District.
Reparations, Equity &
Inclusion
146,675 In progress Discretionary
Revenue Enhancement
/ ALS Development
150,000 Revenue and
program
components under
development
Life and Safety; Not
Recommended for
Reallocation
Attachment 1 - June 9, 2026, Budget Study Session Staff Report
June 9, 2026
Initiative Amount
($)
Consideration Program Status Reallocation
Consideration
Total $3,481,675
Total Discretionary $3,081,675
Re-Imagining Public Safety Programs Supported by the General Fund
The City Council initially allocated $6.4 million for Re-imagining Public Safety initiatives in FY 2021-22 to expand or create the four community-based strategies listed in Table
3. The proposed FY 2026-27 budget includes approximately $8.9 million for these initiatives, a net increase of $2.5 million or 39 percent.
These programs provide important services to Richmond residents and reflect the City Council’s continued investment in community-based public safety strategies. As part of the budget review, a portion of this funding below are noted that are not tied to ongoing staff positions as discretionary resources that could be considered for reallocation if the City Council decides to fund built environment
shortfalls or new priorities while
maintaining a balanced budget.
Table 3: Re-Imagining Public Safety Initiatives
Initiative Discretionary
Amount ($)
Non-Discretionary
Amount ($) Program Status
YouthWORKS 1,980,000 Ongoing youth workforce and career development services
Unhoused
Intervention 1,320,000
Ongoing services supporting
individuals experiencing
homelessness
Office of
Neighborhood Safety
(ONS)
2,586,678
Ongoing violence-prevention
services, outreach, and
community safety partnerships
ROCK (Reach Out
with Compassion and
Kindness)
2,975,823 Crisis response and community
care operations
Sub-Totals $3,300,000 $5,562,501
Total Allocation $8,862,501
The discretionary funding identified in Table 3 (Re-Imagining Public Safety Initiatives), totaling approximately $3.3 million, is not included in the discretionary resources available to address project shortfalls, but it may be considered as part of a future, broader reprioritization discussion.
To support the City Council’s review of the discretionary $1.32 million in Unhoused Intervention funding, this allocation exists within a much larger landscape of City investments in unhoused services. Table 4 summarizes these broader investments to provide context for understanding the total scale of the City’s commitments in this area.
The funding for ONS and CCRP supports personnel and essential operating costs; therefore, is considered non-discretionary. Should the City Council wish to further Attachment 1 - June 9, 2026, Budget Study Session Staff Report
June 9, 2026
expand CCRP services, it may consider pursuing grant opportunities or funding partnerships with Contra Costa County. As with all General Fund-supported programs, any future expansions would require corresponding trade-offs within available resources.
Table 4: Unhoused Intervention Funding
Sources Total
Funding FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Estimated
FY 2026-27
(Balance)
Emergency Housing
Assistance (GF & CD)
255,706 57,438 161,032 37,236
Housing First (GF & CD) 868,166 244,114 423,190 87,258 113,604 Project Homekey (City
Contribution)
10,300,000 10,300,000
Reimagining Public Safety
Annual Allocation $1.32M
- Unhoused Intervention
5,550,257 714,390 732,154 808,934 1,320,000 654,779 1,320,000 Reimagining Public Safety
Housing in-lieu $480K -
Unhoused Intervention
480,000 170,054 309,946
Unhoused Emergency
Services (GF)
50,000 50,000
Total City Funding 17,504,129 714,390 1,033,706 1,393,156 1,614,548 768,383 11,979,946 American Rescue Plan Act
(ARPA) Unhoused Flex
Funding
50,000 50,000
Environmental and
Community Investment
Agreement (ECIA)
106,000 49,500 23,500 25,000 8,000
Encampment Resolution
Fund Round 1- Grant
4,881,272 6,755 2,547,093 2,327,424
Encampment Resolution
Fund Round 2- Grant
8,602,587 2,006,596 2,475,791 1,254,324 2,865,876
Encampment Resolution
Fund Round 3- Grant
9,336,746 4,361,850 4,974,896
Kids First Initiative 1,525,000 70,000 155,000 300,000 500,000 500,000 Project Homekey Grant 14,512,660 6,252,500 8,260,160 Rapid Response (ARPA) 838,572 357,094 342,906 54,267 84,304 Tenant Protection and
Rental Assistance (ARPA)
1,984,233 420,877 925,135 411,528 226,693
Total Grant Funding 41,837,070 413,349 3,033,499 4,909,897 10,032,693 6,620,006 16,827,625
Grand Total $59,341,199 $1,127,739 $4,067,205 $6,303,053 $11,647,241 $7,388,389 $28,807,571
General Fund Subsidies and Support
General Fund subsidies and ongoing General Fund support for operational activities across departments are noted below. These subsidies reflect areas where the General Fund resources are used to sustain programs, district services, or departmental operations that are not fully supported by fees, assessments, or dedicated revenue sources. As part of ongoing fiscal sustainability efforts, City staff will continue evaluating cost recovery opportunities, with Engineering Services, Code Enforcement, etc .
Increasing cost recovery in these areas will help reduce pressure on the General Fund over time and improve long-term structural balance.
Table 5: General Fund (GF) Subsidies and Support
Category Program / Initiative / Fund Amount ($)
City Subsidies Climate Resiliency Contingency 75,000 Employment & Training – Cost Pool¹ 786,288
Employment & Training – Grant Writing¹ 75,000
Richmond Housing Authority (RHA) Subsidy 1,260,073
Richmond Rent Program 529,197
Potential GF Subsidies KCRT Fund 350,468
Attachment 1 - June 9, 2026, Budget Study Session Staff Report
June 9, 2026
Category Program / Initiative / Fund Amount ($)
Employment & Training (Operational Subsidy)¹ 488,491 Hilltop Landscape Maintenance District 146,510
General Fund -Supported Gaps Engineering Services 1,935,941 Code Enforcement 2,768,746
¹ Total GF Support for Employment & Training is $1,349,779.
Proposed Funding Recommendations Under Option 2
Under Option 2, the City Council may choose to reprioritize a portion of the approximately $3.1 million in currently funded discretionary City Council priorities listed in Table 2 to support other high-priority needs. This approach would require identifying which existing initiatives or planned activities should be deferred or discontinued to maintain a balanced budget. As part of the continued development of the FY 2026-27 budget, several significant project shortfalls emerged that may warrant City Council consideration under Option 2. These shortfalls are summarized in Table 5 and include the Richmond Wellness Trail Phase II Project, the San Francisco Bay Trail at Point Molate Project, and improvements at Shields-Reid and Wendell Parks. These project shortfalls address key infrastructure needs and built environment improvements and align with City Council priorities.
Table 6: Project Shortfalls
Project Shortfall Amount ($)
Richmond Wellness Trail Phase II Project 1,045,000
San Francisco Bay Trail at Point Molate Project 1,000,000 Shields-Reid Park (anticipated change orders) 196,000 Wendell Park (anticipated change orders) 435,000
Total $2,676,000
Advanced Life Support (ALS) Funding Considerations and Revenue Strategy
The January 27, 2026, update on Advanced Life Support (ALS) First Responder Services identified that the transition to ALS will create ongoing operational costs that will require a reliable and long-term funding strategy. As such, an evaluation of revenue options and polling results will be presented to the City Council in July 2026. If the polling indicates stronger voter support for a general obligation (GO) bond rather than a parcel tax, the City would need to recognize that GO bond revenues may only be used for capital projects such as fire station upgrades. As a result, the City would still need to identify a stable General Fund source to support the ongoing operational costs of ALS, including staffing, equipment, training, and oversight.
To prepare for these funding needs, and consistent with the reprioritization approach outlined under Option 2, the City may need to consider whether a portion of existing discretionary General Fund allocations that support Re-Imagining Public Safety initiatives may be redirected to sustain ALS operations. Several of these initiatives represent enhanced service levels beyond core municipal functions, and the associated Attachment 1 - June 9, 2026, Budget Study Session Staff Report
June 9, 2026
discretionary resources could be reprogrammed if the City Council identifies ALS implementation as a higher priority due to its associated health and safety benefits for all Richmond residents.
Capital Improvement Plan (CIP) Overview and Funding Status
The proposed CIP budget for FY 2026-27 totals $142.6 million and is supported by several types of funding sources. City Council reviewed detailed CIP reports on May 26, 2026. City staff have compiled a list of fully funded capital projects and their associated funding sources, as well as projects facing funding shortfalls or remaining unfunded.
This compiled list is provided as Attachment 1.
Grant-funded projects, including those supported by Gas Tax, Measure J, and other
dedicated revenue sources, have limited flexibility for reallocation due to statutory and grant-specific restrictions. Projects funded through General Capital or Equipment Services projects have greater flexibility and may be adjusted or redirected at the City Council's discretion. Of the proposed FY 2026-27 CIP budget, approximately $41.7 million is supported by grants, $44.0 million by General Capital (General Fund), and $56.9 million from other funding sources. Thus far, for FY 2026-27, CIP project shortfalls total $13.5 million, and $59.5 million projects remain unfunded.
Table 7: FY 2026-27 Capital Improvement Plan by Funding Type Grant Dedicated
Funds
Equipment
Services
General
Capital
Proposed CIP
Budget FY
2026-27
FY 2026-27
Shortfall
FY 2026-27
Unfunded Total
41,703,913 49,892,408 7,055,000 43,972,517 142,623,838 13,491,000 59,488,500 215,603,338
Department Requests Not Included in the FY 2026-27 Proposed Budget
For additional context as the City Council considers potential modifications under Option 2, all departmental General Fund and non-General Fund requests submitted during the FY 2026-27 budget process that were not included in the draft budget are included below in Table 7. These requests total $29.3 million and reflect a mix of operational needs, program expansion, staffing, capital maintenance, technology investments, and City
-wide infrastructure needs. City staff will continue evaluating these requests as part of long-term planning efforts, but they are not recommended for inclusion in the FY 2026-27 Operating Budget without corresponding reductions to maintain a balanced budget.
Table 8: Department Requests not included in FY 2026-27 Proposed Budget Department Request
Amount ($) Notable Requests
City Attorney 76,000 $20k – Individual law library licenses City Clerk 58,000 $58k – Part-time positions to support workload volume City Council 76,700 $15k – City Council Chamber Public Art City Manager 282,800
$50K – Community Survey, $27K – Health Career
Connections Intern, $100K – Public Outreach, $60K –
Leadership Training
Attachment 1 - June 9, 2026, Budget Study Session Staff Report
June 9, 2026
Department Request
Amount ($) Notable Requests
Community
Services/Library and
Cultural Services
399,559 $170K – Digitization for Richmond Historical Collection Community
Services/Recreation 2,340,959 $1.7M – Request for various Community Centers to accommodate full operation and extended hours
Economic Development 791,700 $350K – Downtown Richmond Economic Revitalization Strategy
Economic
Development/Housing
Authority
499,989 Operational Needs
Economic
Development/Port of
Richmond
2,779,500 $2M – Cost Escalation Wharf Repairs, $600k – Contractual Services
Fire 250,000 $250K – Deferred PPPE and Fire Equipment maintenance
Internal
Services/Information
Technology
350,000 $150K – Additional Microsoft 365 licenses
Police 117,000 $117K – Dispatcher Communication Enhancements Public Works/Public
Works 21,295,000
$20M – Programmatic Approach ($10M – Pavement,
$3M – Sidewalk, $2M – Street Lights, $1.5M – Roofing
and HVAC, $2M – Traffic Signal, $1.5M Stormwater),
$570K – Infrastructure & Park Maintenance, $650K –
Utility Charges
Total $29,317,207
Additional Budget Considerations for City Council Deliberation
As the City Council continues its review of the FY 2026-27 budget, City staff have identified several additional items that may inform current and future budget development, as well as the FY 2025-26 year-end close process. These items include replacing the City-wide Electric Bikeshare Program with the e-Bike Lending Library and the potential use of American Rescue Plan Act State and Local Fiscal Recovery Funds (ARPA SLFRF) interest earnings to support key programs (pending consultant input).
Together, these topics present additional opportunities for City Council consideration to evaluate available resources, prioritize one-time and ongoing investments in the built environment to address project shortfalls and complete projects, and make decisions that balance community benefit with long-term fiscal sustainability.
City-wide Electric Bikeshare Program – City Staff Recommendation On May 19, 2026, City Council approved $390,000 in Environmental and Community Investment Agreement (ECIA) Transportation funds to cover past due invoices and continue operations for the City’s E-Bikeshare Program through June 2026.
As noted in that presentation and agenda report,
the City has spent approximately $3
million from ECIA and other grants to-date for Charleston Mobility (dba Ride Today) to support this program, including maintenance and operations of 12 electric bikeshare hubs throughout the City. However, this program is not financially viable without outside Attachment 1 - June 9, 2026, Budget Study Session Staff Report
June 9, 2026
grant funds and/or continued City support. Additionally, the ECIA Transportation funds that have historically funded the program are in their final year of availability.
As part of the May 19, 2026, presentation, City staff stated they would bring forth three options regarding the future of the e-bike program for City Council consideration as part of the Fiscal Year 2026-27 budget discussion.
Option 1: (City Staff Recommendation) Conclude the e-bike share program and remove associated infrastructure in early FY 2026-27. Fund construction of E-bike Lending Library to continue e-bike access (~$250,000 for 3-month ramp down; $2.2M for construction of e-bike lending library).
Option 2: Continue the program as-is with a limited fleet and 12 bike hubs (~$792,000 per year). Continuing the program would require redirecting discretionary General Fund resources, as no dedicated revenue source exists.
Option 3: Expand the program to add 17 additional hubs and 250 new e-bikes City-wide (~$1,459,294 per year). Expanding the program would require redirecting discretionary General Fund resources, given the absence of alternative funding source(s).
Given the program’s ongoing financial needs, the limited availability of remaining ECIA Transportation funds, and low program utilization by City residents, City staff recommend conclusion of the e-bikeshare program with a three-month wind down through Q1 of FY 2026-27. To continue supporting sustainable and affordable transportation options for Richmond residents, City staff further recommend prioritizing available ECIA funding toward closing the E-Bike Lending Library’s $2.2 million construction funding gap. This approach would redirect limited transportation resources toward a program designed specifically to serve Richmond residents while leveraging significant external grant funding.
E-Bike Lending Library Construction Renderings
The E-Bike Lending Library would be located at Unity Park and serve as a centralized facility where Richmond residents can borrow e-bikes and participate in workshops focused on safe riding practices, maintenance, and bicycle education. Funding the remaining construction gap would unlock approximately $1.2 million in Transformative Attachment 1 - June 9, 2026, Budget Study Session Staff Report
June 9, 2026
Climate Communities (TCC) grant funding for construction, while preserving access to approximately $1.3 million in TCC operations funding over the next two years.
Interest Earnings on Limited-Term Revenue Funds
In addition to the principal settlement payments, the City also earns interest on the unspent balance while those funds remain invested. Upon receipt of the first installment, on July 15, 2025, approximately $48.5 million has been held in the CalTRUST Short-Term Fund, generating $1.80 million in earnings through May 31, 2026. These investment earnings increase the total resources available for community benefit and will be incorporated into the City Council’s future discussions regarding one-time funding opportunities. Although these dollars generate ongoing earnings for as long as the limited-term revenue principal remains fully invested, interest income is inherently volatile and sensitive to market conditions, and therefore not considered a stable, long-term revenue source for ongoing operations. Consistent with public-finance best practices, City staff recommend treating interest earnings on limited-term revenue as one-time resources, appropriate for one-time investments that provide long-term community benefit.
Per City Council direction on April 28, 2026, the City will conduct a separate community engagement process, led by a qualified consultant, to gather input and develop recommendations on how these funds should be prioritized and used. This process is designed to ensure broad community participation, transparency, and alignment with long-term community priorities. Through this effort, residents and stakeholders will help identify one-time investments, spending principles, and priority areas for City Council consideration.
City staff will return to the City Council later this year with updated interest-earnings projections, refined investment assumptions, and the results of the community engagement process.
American Rescue Plan Act State and Local Fiscal Recovery Funds (ARPA SLFRF) Interest Earnings
On May 26, 2026, the City Council received a presentation from Richmond Promise outlining the organization’s current scope of services, its role in supporting Richmond youth before, during, and after postsecondary education, and its ongoing resource needs. Since 2016, Richmond Promise has awarded scholarships to more than 4,600 Richmond Promise Scholars. Following the presentation, the City Council directed City s
taff to explore funding options to support scholarships for Richmond students.
Consistent with this direction, City staff are evaluating whether a portion of the interest earnings on remaining American Rescue Plan Act State and Local Fiscal Recovery Funds (ARPA SLFRF) could be used to support direct Richmond Promise scholarships ,
pending confirmation of federal eligibility requirements. This analysis is being completed in coordination with the City’s ARPA consultants. Once eligibility is confirmed and the Attachment 1 - June 9, 2026, Budget Study Session Staff Report
June 9, 2026
total amount of interest earnings is validated through the year-end close process, City staff will return to the City Council with a comprehensive recommendation.
Potential Criteria for Considering New Initiatives
The City Council routinely considers requests for new programs, policy initiatives, studies, service expansions, and City Council referrals. While many of these requests address important community needs, the City's ability to undertake additional work is constrained by staffing capacity, budget resources, core operational responsibilities, and existing Council-directed priorities.
To support informed decision-making, City staff proposes an “Initiative Evaluation Framework” that would provide a consistent and transparent process for evaluating future initiatives and communicating organizational impacts, resource requirements, and implementation considerations. The primary criterion recommended for evaluating and prioritizing funding requests is alignment with the City Council's Goals and Priorities and any prior Council direction.
Key Evaluation Considerations
Future initiatives may be evaluated using the following categories:
Category Purpose Evaluation Considerations
Strategic Alignment Evaluates consistency with
adopted strategic objectives,
policy direction, and previously
established Council priorities.
Alignment with Council Goals
and Priorities; Prior Council
Direction.
Fiscal and Work Plan Impacts Evaluates financial implications and potential tradeoffs
associated with implementation.
Fiscal Considerations;
Opportunity Costs.
Service Delivery and Resource
Stewardship
Evaluates how the proposed
initiative relates to existing City
services, investments, and
organizational responsibilities.
Impact on Core Services;
Existing City Investments;
Duplication and Appropriate
Governmental Role.
Organizational Capacity and
Implementation
Evaluates the City's ability to
undertake and successfully
implement additional work.
Staffing Capacity;
Interdepartmental and External
Coordination.
Community Benefit and Public
Impact
Assesses the anticipated
benefits and outcomes for
residents, businesses,
stakeholders, and the broader
community.
Community Benefit and Public
Impact.
Council-Initiated Requests and Referrals
The proposed framework is not intended to limit the City Council's authority to introduce new initiatives, referrals, policy proposals, studies, or service enhancements.
When new initiatives are proposed, City staff would conduct an evaluation using the proposed framework and provide City Council with information regarding strategic Attachment 1 - June 9, 2026, Budget Study Session Staff Report
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alignment, community benefit, implementation requirements, fiscal impacts, and potential effects on existing priorities and work plan commitments.
Where implementation may affect staffing capacity, budget resources, core services, or previously approved priorities, City staff will identify those impacts and any associated tradeoffs for City Council consideration.
Next Steps
City staff will continue refining the draft FY 2026-27 Operating Budget and the FY 2026- 31 CIP based on direction received during this Special Budget Study Session. As part of this work, City staff will update revenue and expenditure assumptions, incorporate City Council direction regarding discretionary programs, and prepare any necessary adjustments to maintain a balanced General Fund in alignment with the City Council’s adopted reserve policy.
In accordance with the adopted budget schedule, City staff will return to the City Council on June 16, 2026, to present the Budget Checklist, which will summarize outstanding questions, requested clarifications, and additional information identified during prior budget discussions for final adoption on June 23, 2026.
Requested Direction from City Council
City staff request direction on the following items to support preparation of the final FY 2026-27 Operating Budget and FY 2026-31 Capital Improvement Plan:
1. Should the City proceed with Option 1 (status quo budget) or Option 2 (reprioritization of existing discretionary funding)?
2. If Option 2 is preferred, which existing discretionary initiatives, programs, or commitments should be reduced, deferred, or discontinued to maintain a balanced budget?
3. Should discretionary funding be redirected to address identified project shortfalls, including the Richmond Wellness Trail Phase II Project, San Francisco Bay Trail at Point Molate Project, and park improvement projects?
4. Are there additional City Council priorities or built environment investments that should be reflected in the final budget and CIP?
5. Approve replacing the e-bike program with the e-Bike Lending Library.
6. Does the City Council support further development of the proposed Initiative Evaluation Framework to assist with evaluating future Council initiatives, referrals, and service expansion requests? If not, how does the City Council want staff to prioritize the 37 key initiatives?
DOCUMENTS ATTACHED:
Attachment 1 – Draft FY 2026-27 CIP Budget by Funding Type with Unfunded & Shortfalls, June 2026 Update
Attachment 2 – Draft City Council Budget Checklist
Attachment 1 - June 9, 2026, Budget Study Session Staff Report
June 9, 2026
Attachment 3 – Draft Budget Presentation
Attachment 1 - June 9, 2026, Budget Study Session Staff Report