July 28, 2026
Finance Department
DATE: July 28, 2026
TO: Mayor Martinez and Members of the City Council
FROM:
Emily Combs, Director of Finance
Mubeen Qader, Deputy Director of Finance
Subject:
Contract with NBS Government Finance Group for an
Independent Fiscal Analysis of the Public Safety Funding and Minimum Police Staffing Charter Amendment
FINANCIAL IMPACT: The proposed $24,500 expenditure will be absorbed within the approved Fiscal Year 2026-2027 Finance
Department budget (Account String: 01171115-400201).
PREVIOUS COUNCIL
ACTION:
None.
STATEMENT OF THE
ISSUE:
The Public Safety Funding Charter Amendment Initiative
would create a dedicated Public Safety Fund and require the City to maintain a minimum of 187 sworn police
officers. These mandates could significantly impact the City’s long‑ term financial sustainability, budget flexibility, and ability to meet other operational needs.
The City staff recommends securing an independent
fiscal analysis to evaluate the initiative’s multi‑ year financial impacts, cost drivers, risks, and economic
scenarios. NBS, a firm with extensive experience
providing fiscal impact analyses for California agencies, has submitted a proposal outlining a comprehensive
methodology to assess the initiative’s fiscal implications and provide objective findings.
RECOMMENDED ACTION:
APPROVE a sole-source contract with NBS Government
Finance Group to conduct an independent fiscal analysis of the Public Safety Funding Charter Amendment
Initiative, in an amount not to exceed $24,500, for the AGENDA
REPORT
July 28, 2026
term of August 1, 2026, through July 31, 2027 – Finance Department – (Emily Combs/Mubeen Qader 510-412-
2077).
DISCUSSION:
The Public Safety Funding Charter Amendment Initiative proposes major structural changes to the City’s budgeting and public safety operations by establishing a dedicated Public Safety Fund and requiring a minimum of 187 sworn police officer positions beginning in the second fiscal year following voter approval. These mandates carry significant long-term fiscal implications for the City, including required allocations of unrestricted General Fund revenues, increased personnel-related costs, and potential effects on operational flexibility and service delivery across departments.
City staff determined an independent fiscal analysis is needed to fully understand the measure’s long-term financial impacts. An outside review offers unbiased modeling of projected costs, assesses personnel and pension expenses, evaluates economic risks, and provides multi-year financial projections and risk analyses tailored to the City.
The proposed contract with NBS Government Finance Group (NBS) is being recommended on a sole-source basis because NBS was the only firm to submit a proposal. Below is the list of consulting groups the City staff contacted for proposals:
NBS Government Finance Group
Matrix Consulting Group
NHA Advisors LLC
SCI Consulting Group
Willdan Financial Services
NBS is experienced in fiscal impact analysis for California public agencies and offers a thorough work plan that includes financial modeling, risk assessment, sensitivity analysis, and clear summary reports. Its team’s municipal finance expertise covers public safety funding, staffing costs, district formations, and budget modeling. By working with NBS, the City will receive an unbiased, well-documented evaluation suitable for City Council and public review.
Given the magnitude of the policy changes and the potential impact on the City’s General Fund, workforce planning, and community service levels, obtaining an independent fiscal analysis is both prudent and necessary to support transparent public engagement and responsible financial stewardship. Awarding this contract will provide the City Council and the community with an objective foundation for evaluating the full implications of the proposed charter amendment and determining next steps.
July 28, 2026
NEXT STEPS:
Upon City Council approval, City staff will execute the agreement with NBS Government Finance Group in the amount not to exceed $24,500 for the term covering August 1, 2026, through July 31, 2027.
DOCUMENTS ATTACHED:
Attachment 1 –Contract
Attachment 2 – Public Safety Funding Charter Amendment Initiative - Ballot Title and Summary
Attachment 3 – Sole Source Form