June 16, 2026
City Manager's Office
Finance Department
DATE: June 16, 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:
Review and Provide Direction on the Fiscal Year (FY)
2026-27 Proposed Budget and FY 2026-31 Five-Year
Capital Improvement Plan
FINANCIAL IMPACT: There is no financial impact to receiving this report.
PREVIOUS COUNCIL
ACTION:
May 5, 2026
May 19, 2026
May 26, 2026
June 9, 2026
STATEMENT OF THE
ISSUE:
On May 26, 2026, the City Council received the FY 2026- 27 proposed operating budget and FY 2026-31 Capital
Improvement Plan (CIP) budget, with continued
discussions on June 9, 2026. The purpose of this item is to review the Proposed Budget, Five-Year CIP, and
receive direction from the City Council prior to final
budget adoption on June 23, 2026.
RECOMMENDED ACTION:
REVIEW proposed Fiscal Year 2026-27 Budget, Five-
Year Capital Improvement Plan Budget for Fiscal Years
2026-27 through 2030-31; and PROVIDE DIRECTION to
staff prior to final budget adoption – City Manager’s
Office/Finance Department (Shasa Curl/Emily
Combs/Mubeen Qader 510-412-2077).
AGENDA
REPORT
June 16, 2026
DISCUSSION:
At the June 9, 2026, Budget Study Session, the City Council reviewed the balanced Fiscal Year (FY) 2026‑ 27 Operating Budget and the FY 2026‑ 31 Capital Improvement Plan (CIP). Building on that discussion, this report focuses on the remaining decision points necessary for final adoption. The City Council also reviewed pathways for budget adoption: Option 1, which would adopt the proposed balanced budget as presented and maintain all current service levels and previously funded initiatives; and Option 2, which would preserve structural balance through targeted reprioritization to address higher‑ priority needs, including project shortfalls for the Richmond Wellness Trail Phase II, San Francisco Bay Trail at Point Molate Project, and improvements at Shields- Reid and Wendell Parks. Additional background on these options and the overall budget framework is included in the staff report from the June 9, 2026, Budget Study Session (Attachment 1).
Following that review, the City Council requested additional information regarding alternative methods for addressing the identified CIP project shortfalls. To support this inquiry, City staff evaluated the existing list of funded CIP projects to determine whether adjustments to project timing, scope, or available balances could create capacity to close the funding gaps. This analysis includes identifying projects with potential savings, assessing opportunities for deferral or phasing, and confirming any restrictions associated with current funding sources. Table 1 summarizes the project shortfalls previously presented to the City Council on June 9, 2026.
Table 1: 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 $2,676,000
Table 2 presents a set of options from the General Capital Fund and the Equipment Services Fund that may be used to address the project shortfalls identified in Table 1.
These options reflect potential deferrals or reallocations from existing capital and fleet projects based on project status, timing, the ability to postpone or shift planned work, and, for some projects, the opportunity to pursue grant funding to offset future costs.
The table summarizes the available amounts and key considerations for each option to support the City Council’s evaluation of approaches to closing the identified gaps within the FY 2026–31 CIP.
June 16, 2026
Table 2: Funding Options for Project Shortfalls
Project Fund Amount
($) Comments
Corporation
Yard Fuel Site
Upgrades
Design
General Capital 189,800
Deferred due to future project funding
constraints; estimated total project cost ~$2.2
million.
Civic Center
Plaza
Landscaping
General Capital 200,000
Will be removed from the CIP. This project can
be reduced in scope and covered within
existing operating and maintenance resources.
Point Molate
Trail Beach
Stabilization
General Capital 1,250,000 Future grant opportunities are expected to address the funding shortfall for this project.
Fire Fleet Equipment Services 470,000 Postpone scheduled Fire Department vehicle replacement.
City-wide Fleet Equipment Services 180,000 Postpone scheduled vehicle replacements for various City departments.
Parks and Open
Space Program General Capital 386,200
Future grants will be pursued to cover this
cost; required for Point Molate Beach
Stabilization mitigation.
Total $2,676,000
Recommendation
City staff recommends that the City Council direct staff to proceed with the funding options outlined in Table 2 to address the project shortfalls identified in Table 1 and to move forward with the balanced FY 2026-27 Operating Budget and the FY 2026-31 CIP as presented. This direction will allow City staff to finalize the necessary adjustments and prepare the budget documents for adoption on June 23, 2026.
NEXT STEPS
City staff will finalize the City Council Checklist for distribution on June 16, 2026.
Thereafter, City staff will incorporate City Council feedback provided on June 16, 2026, and provide the FY 2026-27 Operating Budget and the FY 2026-27 through FY 2030-31 Five-Year Capital Improvement Plan for adoption on June 23, 2026. In addition, City staff will continue evaluating Environmental and Community Investment Agreement (ECIA) funding for Council review and discussion at a subsequent City Council meeting.
DOCUMENTS ATTACHED:
Attachment 1 – June 9, 2026, Budget Study Session Staff Report Attachment 2 – Draft Budget Presentation
Attachment 3 – Draft Summary of Revenues, by Fund, by Type Attachment 4 – Draft Summary of Expenditures, by Fund, by Type Attachment 5 – Draft Summary of Expenditures, by Fund, by Department Attachment 6 – Draft Capital Improvement Plan Budget & Forecast Summaries Attachment 7 – Draft Multi-Year Comparative Position Listing Attachment 8 – General Fund Five-Year Forecast