CITY COUNCIL
Kevin McCarty, Mayor
Lisa Kaplan, District 1
Roger Dickinson, District 2
Karina Talamantes, Vice Mayor, District 3
Phil Pluckebaum, District 4
Caity Maple, District 5
Eric Guerra, Mayor Pro Tem, District 6
Rick Jennings, II, District 7
Mai Vang, District 8
CHARTER OFFICERS
Mindy Cuppy, City Clerk
Gustavo Limón Martinez, City Attorney
Farishta Ahrary, City Auditor
Maraskeshia Smith, City Manager
John Colville, City Treasurer
City Council
Financing Authority
Housing Authority
Public Financing Authority
Redevelopment Agency Successor Agency
City Hall Complex
915 I Street, Sacramento, CA 95814
Published by the Office of the City Clerk
(916) 808-7200
AMENDMENT MATERIAL
Description: Attached is amendment material received after publishing the agenda. Updating attachment 3-Presentations (Youth, Parks, & Community Enrichment).
For the Meeting of: Tuesday, March 17, 2026, at 2:00 p.m.
Agenda Item: Discussion Item 14
14. Early Budget Work Session - Budget Context and City Department Reports on Departmental Budgets, Reduction Strategies, and Potential Impacts (Youth, Parks, and Community Enrichment, Community Development Department, Finance Department, Human Resources, Information Technology, Department of Utilities, and Public Works Department)
File ID: 2026-00664
Location: Citywide
Recommendation: Receive and file.
Contact: Peter Coletto, Director, (916) 808-5416,
[email protected], Department of Finance
City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2026-00664 3/17/2026
Early Budget Work Session - Budget Context and City Department Reports on Departmental Budgets, Reduction Strategies, and Potential Impacts (Youth, Parks, and Community Enrichment, Community Development Department, Finance Department, Human Resources, Information Technology, Department of Utilities, and Public Works Department) File ID: 2026-00664
Location: Citywide
Recommendation: Receive and file.
Contact: Peter Coletto, Director, (916) 808-5416, [email protected], Department of Finance
Presenter: Jackie Beecham, Director, (916) 808-1041, [email protected], Department of Youth, Parks, and Community Enrichment; Tom Pace, Director, (916) 808-2691, [email protected], Department of Community Development; Peter Coletto, Director, (916) 808-5416, [email protected], Department of Finance; Samantha Hardy, Human Resources Manager, (916) 808-7657, [email protected], Department of Human Resources; Darin Arcolino, Director, (916) 808-0403, [email protected], Information Technology Department; Dalia Fadl, Director, (916) 808-3765, [email protected], Department of Utilities; Matt Eireman, Director, (916) 808-5849, [email protected], Department of Public Works
Attachments:
1-Description/Analysis
2-BASELINE REDUCTION STRATEGIES - As of March 4, 2026
3-Presentations
Description/Analysis
Issue Detail: The City of Sacramento (City) is facing a structural budget deficit with ongoing expense increases outpacing revenue growth and must close a forecasted $66.2 million gap to balance the Fiscal Year (FY) 2026/27 Budget.
In preparation for Council’s formal Budget Hearings in May, the City is conducting a series of Early Budget Work Sessions (EBWS) during March. The EBWS will begin with a presentation of the overall
File ID: 2026-00664 3/17/2026
City budget context and fiscal challenge as well as different budget scenarios that City staff analyzed.
Following the budget context, City departments will provide budget-focused presentations focusing on the impacts of budget reduction decisions and alignment with Council priorities. The schedule will be as follows:
March 3, 2026
Budget Overview and Context
Balancing Scenarios
March 10, 2026
City Manager / Office of Innovation and Economic Development Convention and Cultural Services
Department of Community Response
Fire Department
Police Department
March 17, 2026
Youth, Parks & Community Enrichment
Community Development Department
Finance
Human Resources
Information Technology
Department of Utilities
Public Works
March 24, 2026
City Attorney
City Auditor
City Clerk
City Treasurer
Office of Public Safety Accountability
Following the Early Budget Work Sessions, the City Manager will release a balanced Proposed Budget by the end of April, Council will hold formal Budget Hearings in May and adopt a balanced Final Budget in June.
Policy Considerations: Not applicable.
Economic Impacts: None.
Environmental Considerations: Not applicable.
File ID: 2026-00664 3/17/2026
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Not applicable.
Financial Considerations: Not applicable.
Fiscal Year 2026/27
Early Budget Work Session
Early Budget Work Sessions Schedule
2 March 3 • Budget Overview and Context
• Balancing Scenarios
March 10
Department
Presentations
• Baseline Balancing Plan Overview
• City Manager / OIED
• Convention & Cultural Services
• Department of Community Response
• Fire
• Police
March 17
Department
Presentations
• Y outh, Parks & Community Enrichment
• Community Development
• Finance / Human Resources / Information T echnology
• Public Works
• Department of Utilities
March 24
Department
Presentations
• City Attorney
• City Auditor
• City Clerk
• City T reasurer
• Office of Public Safety Accountabilty
This is staff’s budget
baseline balancing plan and
only uses a portion of the
15% reduction strategies
submitted by departments.
Departments will explain the
service impacts of the
strategies chosen for the
baseline plan in their
presentations.
3 Strategy Savings
Interest on Treasury Pool $3.5
Debt Refunding $1.4
Debt Service Funding Shift $1.2
Citywide Strategies / Project Fund Reallocations $11.4
Homelessness Services Contract Efficiencies $3.8
Hotel Voucher Program Shift $3.2
X St Shelter Partnership Savings $2.8
Fire Single Role Savings $3.6
Violence Prevention Grant & MYOP $1.8
Additional Departmental Revenues $15.1
Expense Reductions:
Police $7.1
Fire $5.6
YPCE $4.8
Other Departments $7.5
Total Savings $72.8
Baseline
Budget Balancing
Plan
Department Presentations
Youth, Parks, &
Community Enrichment
Department Mission & Services
Together we empower our
youth, strengthen
neighborhoods, and provide
life-enriching programs for
a beautiful, livable
community.
6 Responsible for daily maintenance of 243
parks, parkways, bike trails, natural areas ,and
open space areas spanning over 4,360 acres.
Deliver programs and amenities that support
healthy and safe communities, create
pathways for youth development, encourage
active recreation, celebrate cultural diversity,
and connect people to nature, and each other.
Department Mission Services
7 Youth, Parks, & Community Enrichment Department Structure 8 TOTAL FTE: 678 = 1,437 Individual Employees
351 full-time
1086 seasonal/part-time
YPCE Director
Administration
All-Ages
Recreation
Programming
Aquatics &
Workforce
Development
Community
Centers &
Permitting
Park Planning &
Development
Services
Park
Maintenance Park Rangers
Youth
Development
Administration
Current Year Budget $65.9($ millions)
9 General Fund Budget
Appropriations $49.0
Revenues $6.7
Net General Fund Cost $42.3
Full-Time Equivalent Positions 507.61
Other Funds Budget
Start and 4th R $7.2
Revenues $11.1
Community Facility District
(CFD'S)
$9.7
Full-Time Equivalent Positions 170.39
10 Operating Budget
by Program
($millions)
11 Operating Budget by
Spending Category
($ millions)
15% Reduction Options Summary ($ millions)
12 Reduction
Category
Savings
Amount Vacant FTE Filled FTE Total FTE
Revenue $.25 0 0 0
Level 1 $.35 1.35 0 1.35
Level 2 $1.0 0 6.65 6.65
Level 3 $2.4 9.82 45.68 55.50
Level 4 $2.1 27 30.70 57.70
Total $6.1 38.17 83.03 121.20
Community &
Service Impacts
($1.3M)
13 Youth & All-Ages Enrichment Programs
• Revenue adjustment from increased participation in
Triple-R
• Delete vacancies for contracted after school
program and workforce development, add lower FTE
positions for GF savings; no impact
• Eliminate stipends and reduce staff for workforce
development and civic engagement programs; 50%
reduced offerings, elimination of S@CH; 500+ youth
• Outsource some specialized adaptive recreation
services; reduced city offered special events and
programs
• Shift administrative support costs to eligible fund
source
14 Community Center Programs & Operations
• Modify community center fee reduction/waiver
program discount by 50%; impacts to non-youth
organizations; no impact to youth through
scholarship fund
• Reduce community center and older adult services
program staff and realign for operational efficiencies
and savings; inability to expand capacities in youth
and senior programs
• Reduce public counter customer service hours from
8 to 3 locations; online registration and support
available
• Reduce community center operations at eight
locations citywide from 6 days/week to 4 days/week;
access to youth & older adult programs in centers
reduced by 27%
Community &
Service Impacts
($1.7M)
15 Aquatics Programs & Operations
• Delete non-career aquatics support; reduction in
extended season opportunities and elimination of
YPCE sponsored aquatics special events, no impact
to core safety programs
• Closure of four wading pools during seasonal
operations; 15 splashpads & spray parks remain open
• Reduce 10 neighborhood pools from 5 days/week to
3 days/week during seasonal operations; impacts
access to safe recreational swim- anticipated
reduction of 12,000 visits citywide
Community &
Service Impacts
($.6M)
16 Park Maintenance Operations
• Contracting of specialty maintenance services;
reduction of 6 staff ($172K)
• Contracting of all landscape maintenance activities at 109 Neighborhood Parks; reduction of 25 staff
($503K)
• Contracting of all landscape maintenance activities at 46 Community Parks; reduction of 23 staff ($538K)
• No anticipated impact to maintenance service levels;
potential impact to quality of service and
emergency maintenance response resulting from a
total reduction of 53% city staff delivered services
Community &
Service Impacts
($1.2M)
Total Budget
Balancing Impacts
($4.8M)
Preserving Core Services & Advancing Council Priorities 17 YPCE plays a critical role in providing quality parks, programs, and facilities for all, through Sacramento's expansive park and recreation system. YPCE will focus on delivering core services and advancing council priorities through key directions outlin ed in the Parks Plan 2040 including Quality Parks & Programs, Safety & Maintenance, and Youth Wellbeing. • Park Rangers continue to respond to calls for service prioritizing public safety and supporting DCR’s Rapid Response Team efforts to address homelessness outreach and cleanup. • Provide scholarships and fee waivers for low-income residents, food and resources for older adults on fixed incomes, and workforce training for at-risk youth, helping prevent homelessness through skill building and community integration. • Deliver aquatics programs, workforce development opportunities, youth and adult sports programs and field use, recreation and events that safely activate parks and facilities and provide a positive economic impact. • Community Centers operate with equity-based approach, providing access to safe spaces and youth and older adult programs in priority neighborhoods and communities.
• Continue afterschool and summer camp programs that support youth safety and community-powered economies through affordable childcare for working families.
• Prioritize maintenance of all 243 parks, parkways, bike trails, natural areas and open space to ensure they are safe, clean, and accessible to all Sacramento residents and visitors.
Community Development
Department
Community Development Mission & Vision
To help plan, build and
maintain a great city.
19 ● Planning
● Building
● Code Compliance
● Animal Care
Department Mission Department Services
Department Structure
20 Total Positions (FTE): 315
CDD
Administrative
Services
Animal Care
Services Building Code
Compliance Planning
Current Year (FY 25/26) Budget ($ in millions)
21 General Fund Budget
Appropriations $58.6
Revenues/Reimbursements $36.7
Net General Fund Cost $21.9
Full-Time Equivalent Positions 315.0
The Community Development Deparment’s total budget is $60.7M, which includes Special Revenue Funds and the Citywide Low-income Housing Fund.
General Fund
Appropriation By
Division ($ in millions)
22 Administrative
Services
$2.6
4%
Animal Care
Services
$9.4
16%
Building
$18.0
31%Code Compliance
$15.5
27%
Planning
$13.1
22%
TOTAL
$58.6
General Fund
Appropriation By
Spending Category
($ in millions)
23 Salaries & Benefits
$44.9
77%
Services &
Supplies
$9.5
16%
City Property
$0.2
0%
Multi-Year
Operating
Projects
$4.0
7%
Offsets & Transfers: ($3.4)
TOTAL
$58.6
General Fund
Revenue/
Reimbursements by
Division ($ in millions)
24 Animal Care
Services
$1.1
3%
Building
$19.7
54%
Code
Compliance
$9.2
25%
Planning
$6.7
18%
TOTAL
$36.7
15% Reduction Options Summary ($ in millions)
25 Reduction
Category
Savings
Amount Vacant FTE Filled FTE Total FTE
Revenue $1.0 - - -
Level 1 $1.8 - - -
Level 2 - - - -
Level 3 $0.5 - - -
Level 4 - - - -
Total $3.3 0.0 0.0 0.0
Community &
Service Impacts
26 Revenue Increases
• Aligning Planning fees with actual costs will not
have a service impact.
Level 1 Reductions
• Reducing the plan review and inspection
consultant budget will not have a service impact.
• Offsetting Neighborhood Development Action
T eam staff costs to the General Plan project will
not have a service impact.
Level 3 Reductions
• Reducing funding for affordable housing impact
fee assistance will reduce the number of units
assisted.
• Alternatives to reduction
Preserving Core Services & Advancing Council Priorities 27 The Community Development Department (CDD) provides core, essential services to the City and its residents. With these reductions, CDD will continue to:
• Protect the health and safety of the public through construction regulations, building inspections, plan review, and ensuring compliance with established building code. • Manage our city’s land uses, establish and oversee zoning regulations, and ensure new development in accordance with the 2040 General Plan, specific plans, and zoning codes. • Promote and maintain safe and desirable living and working environment for Sacramento residents, business owners, and visitors.
• Shelter lost and stray animals while enforcing local and state animal welfare laws through adoption, volunteer, and public outreach programs.
Finance Department
Department Mission & Services
To educate, inform, and
provide excellent internal
and external customer
service with integrity,
efficiency, and quality.
29 Overseeing the financial
management of the City by
providing accounting,
billing, budgeting,
collection, infrastructure
finance, parking citation,
payroll, procurement, and
collection services.
Department Mission Services
Department Structure
30 Total FTE: 102.0
Finance
Director
Accounting Budget Cannabis Infrastructure
Finance Payroll Procurement Revenue
Current Year Budget ($ millions)
31 General Fund Budget
Appropriations $11.8
Revenues $4.9
Net General Fund Cost $6.9
Full-Time Equivalent Positions 102.0
The Finance Department’s total budget is $25.4M, with the non-General Fund portion consisting of special districts administered by the Infrastructure Finance division.
General Fund
Appropriation By
Division ($ millions)
32 Accounting
$2.2
19%
Budget
$1.2
10%
Cannabis
$1.7
15%
Infrastructure
Finance
$0.4
3%
Payroll
$1.1
9%
Procurement
$0.9
8%
Revenue
$3.6
31%
Office of the
Director
$0.6
5%
TOTAL:
$11.8
General Fund
Appropriation By
Spending Category
($ millions)
33 Salaries & Benefits
$15.6
88%
Services &
Supplies
$2.1
12%
City Property
$0.0
0%
Offsets & Transfers: ($5.9)
TOTAL:
$11.8
15% Reduction Options Summary ($ millions)
34 Reduction
Category
Savings
Amount Vacant FTE Filled FTE Total FTE
Revenue $0.45 - - -
Level 1 - - - -
Level 2 $0.08 1.0 - 1.0
Level 3 $0.07 1.0 - 1.0
Level 4 $0.43 - 4.0 4.0
Total $1.03 2.0 4.0 6.0
15% Reduction Target: $1.03
Budget
Balancing
Impacts
($0.6M)
35 Revenue Increases
• Aligning late fee, Escheat, Permit and Taxes,
and Infrastructure Finance revenues with
projections will not have a service impact.
Expense Reductions
• Eliminating vacancy - reduction in capacity in
payables, but staff is currently managing
existing workload
• Eliminating vacancy - further reduction in
payables capacity & greater risk of payment
delays
Preserving Core Services & Advancing Council Priorities 36 Finance is an internal services department that supports other departments delivering direct services. With these reductions, Finance will continue to:
• Support Economic Development via administering development fee programs, special districts (BIAs/BIDs/PBIDs etc), and the formation of Enhanced Infrastructure Finance Districts.
• Administer City tax programs bringing which provide the revenues to support service delivery.
• Meet State and Charter mandates regarding budgeting and financial reporting. • Support all other departments with procurement, payments, and payroll services.
Human Resources Department
Department Mission & Services
The Human Resources
Department delivers
programs and services in a
professional manner to
customers that result in a
positive experience.
38 ● Benefits for Active and Retired Employees
● Diversity, Equity, and Inclusion
● Employment Services (Recruitment, Classification, and Compensation) ● Labor Relations
○ Equal Employment Opportunity
○ Leave Administration
● Risk Management
○ Environmental Health and Safety
○ Workers’ Compensation
Department Mission Services
Department Structure
39 Total FTE: 77 / Total General Fund FTE: 42
Human
Resources
Benefits DEI Employment Labor
Relations
Risk
Management
Human Resources – Department Budget Overview
40 Total Budget: $86.4M
Total FTE: 77
6% General Fund Programs & Services - $5.4M and 42 FTE
24% Workers’ Compensation - $21M and 19 FTE
70% Risk Management - $60M and 16 FTE
Current Year Budget ($ millions)
41 General Fund Budget
Appropriations $5.4
Revenues $0
Net General Fund Cost $5.4
Full-Time Equivalent Positions 42.0
The Human Resources Department’s General Fund budget is $5.4M General Fund
Appropriation By
Division ($ millions)
42 HR
Administration
$0.9
17%
Benefit Services
$0.8
15%
Employment
Services
$1.5
28%
Labor Relations
$1.6
29%
Office of Diversity &
Equity
$0.6
11%
TOTAL:
$5.4
General Fund
Appropriation By
Spending Category
($ millions)
43 Salaries & Benefits
$6.35
87%
Services & Supplies
$0.98
13%
City Property
$0.01
0%
Offsets & Transfers: ($1.9)
TOTAL:
$5.4
15% Reduction Options Summary ($ millions)
44 Reduction
Category
Savings
Amount Vacant FTE Filled FTE Total FTE
Revenue - - - -
Level 1 - - - -
Level 2 $0.3 1.0 - 1.0
Level 3 $0.1 - 1.0 1.0
Level 4 $0.4 - 2.0 2.0
Total $0.8 1.0 3.0 4.0
Budget Balancing
Impacts
45 Level 2 Reductions
•Job classification re-alignment to effectively manage
compliance with Leave Administration laws.
•Eliminate 1.0 FTE in Employment Services increasing Human Resources processing timelines for departmental Personnel Action Requests from 10 business days to 15 business days. •Reduce funding for non-mandatory services and supplies in Benefit Services such as eliminating printed communications to retirees and charging back costs for employment
authorization verifications to departments.
•Reduce funding for non-legally mandated contracted
instructional and other professional services based on
historical trends.
•Eliminate 1.0 FTE in Office of Diversity & Equity reducing DEI programming and initiatives.
Savings Amount: $.44M
Vacant FTE: 1
Filled FTE: 1
Level 3 Reductions
Preserving Core Services
46 Human Resources is an internal services department that supports Citywide program and service delivery. We will continue to:
• Support recruitment and retention to keep the City staffed through a fair and consistent hiring process.
• Provide competitive health and supplemental retirement benefits to support employee well-being and and long-term sustainability.
• Partner with departments to provide practical guidance and standardized processes for transparent, equitable, and legally compliant decision-making. • Advance a representative, equitable, and inclusive workforce. • Comply with City policies, the City Charter, labor agreements, and state and federal law and meet required reporting and recordkeeping obligations.
Information Technology
Department Mission & Services
Ensure IT investments and
technologies are customer-
focused, sound, equitable,
and deliver the highest
possible value to the City
and its constituents.
48 Provide enterprise
applications, infrastructure,
cybersecurity, digital
services, public safety
systems, customer support,
and strategic technology
planning.
Department Mission Services
Department Structure
49 Total FTE: 202.5 / Total General Fund FTE: 161.5
Office of
the CIO
Sacramento
City 311
Enterprise
Applications
IT
Operations
Regional
Support
Public
Safety IT
Utilities IT
& GIS
Current Year Budget ($ millions)
50 General Fund Budget
Appropriations $21.63
Revenues $0.40
Net General Fund Cost $21.23
Full-Time Equivalent Positions 161.5
The Information Technology Department's Total Budget is $35.3 million Citywide Technology Maintenance and Support operating budget is $5.3 million General Fund
Appropriation By
Division ($ millions)
51 Office of the CIO
$1.7
8%
Sacramento City
311
$2.7
12%
Enterprise
Applications
$4.7
22%
IT Operations
$3.3
15%
Regional Support
$2.3
11%
Public Safety IT
$5.6
26%
Utilities & GIS
$1.4
6%
TOTAL:
$21.6
General Fund
Appropriation By
Spending Category
($ millions)
52 Salaries & Benefits
$35.5
95%
Services &
Supplies
$1.6
4%
City Property
$0.4
1%
Offsets & Transfers: ($15.8)
TOTAL:
$21.6
15% Reduction Options Summary ($ millions)
53 Reduction
Category
Savings
Amount Vacant FTE Filled FTE Total FTE
Revenue - - - -
Level 1 - - - -
Level 2 - - - -
Level 3 $0.08 1.0 - 1.0
Level 4 $3.86 1.0 25.0 26.0
Total $3.94 2.0 25.0 27.0
Budget Balancing
Impacts
54 Level 3 Reductions
• Reduced 311 service capacity, increasing the risk of
longer response times and extended call wait times
for residents seeking City services.
Level 4 Reductions
• Reduced service desk coordination and capacity,
slowing response times for technology issues that
support City operations and staff.
• Reduced GIS and data analytics capacity by 29%,
significantly limiting mapping, planning, and data-
driven decision-making across City departments.
This increases operational risk by reducing GIS
support for critical functions, including permitting,
building inspections, parking operations, community
response, and the City’s Open Data Portal.
Savings Amount: $1.09M
Vacant FTE: 2
Filled FTE: 5
Preserving Core Services & Advancing Council Priorities 55 The IT strategy is to sustain core technology services while empowering citywide departments to deliver modern, responsive services aligned with Council priorities. We will continue to:
• Delivering smarter, more accessible City services
• Modernizing permitting and business engagement
• Strengthening public safety through technology and data • Advancing responsible AI innovation
• Investing in digital equity and community access
• Maintaining reliable, secure citywide technology operations Public Works
Matt Eierman, Director
Department Mission & Services
We keep the City of
Sacramento operating
through innovative and
sustainable public
infrastructure and
services.
57 Public Works is the second largest City
department that provides innovative and
sustainable public infrastructure and
services; buildings, streets, lights, signs,
trees, bridges, fleet, parking, and more.
Mission Services
Public Works Staffing Structure
58Total FTE: 780
Office of the Director – 10
Maintenance Services Division – 121
Facilities & Real Property Management Division – 73
Fleet Division – 83
Recycling & Solid Waste Division – 192
Engineering Services Division – 79
Parking Services Division – 133
Transportation Division – 72
Mobility & Sustainability Division – 17
59 Expense budget by funds
City of Sacramento – Public Works
Operating Budget Overview | $238 Million
66% Enterprise/Special Funds – $156.3M
Recycling & Solid Waste | Fleet | Parking | Marina
20% Transportation & Restricted Funds – $48.6M
Gas Tax | Measure A | Road Rehab | Traffic Safety | Development Fees 14% General Fund – $32.7M
Supports core public infrastructure operations
Executive Takeaway
Public Works is largely self-funded. 86% of expenses are restricted or enterprise-based, limiting flexibility while reinforcing fiscal discipline Current Year Expense Budget ($ millions)
60 General Fund Budget
Appropriations $32.7
Revenues $38.1
Net General Fund Cost -$5.5
Full-Time Equivalent Positions 446
Public Works is a NET contributor to the General Fund
General Fund Appropriation By Division ($ millions)
61 General Fund Appropriation By Spending Category ($ millions) 62 Budget Proposals
63 Adjust fines for
frequent parking
violations.
Adjust meter rates
to encourage
turnover and match
market pricing.
Set uniform meter
hours ending at
10 PM citywide.
Add 200 paid
parking spaces in
high-demand areas.
Implement
residential permit
fees to cover
program costs.
Public Works Alignment with Council Priorities
64 In FY2027, Public Works investments directly advance Council’s three adopted priorities through infrastructure delivery and operational reliability.
Economic Development
• Leverage external funding to multiply local impact
• I Street Bridge Replacement Project
• Curb Management
Public Safety
• Improve traffic safety, lighting, and street reliability through TAG (Tactical Action Group)
Homelessness
• Support facility and site readiness for housing and services 65 Public Works Alignment with Council Priorities
DEPARTMENT OF UTILITIES
Department Mission & Services
To provide our customers
dependable, high quality
drinking water, storm
water, and wastewater
services in a safe, fiscally
responsible, and
environmentally sustainable
manner.
67 ● Drinking Water
● Stormwater / Drainage / Flood Protection
● Wastewater / Sewer
Department Mission Services
Department Structure
68 Total FTE: 607 / Total General Fund FTE: zero
Utilities
Office of the
Director
Engineering &
Water
Resources
Drinking Water Wastewater /
Drainage
Business
Services
Appropriation By
DOU Divisions
($ millions)
Zero General Fund
Dollars
Fiscal Year 26 Budget
69 Engineering &
Water Resources
$12.9
11%
Office of the
Director
$9.0
7%
Wastewater &
Storm Drainage
O&M
$49.8
40%
Business Services
$8.1
7%
Water O&M
$43.7
35%
TOTAL:
$123.5
DOU Appropriation
By Spending
Categories
($ millions)
Zero General Fund
Dollars
Fiscal Year 26 Budget
70 Salaries & Benefits
$99.4
33%
Debt Service
$39.9
13%
City Property
$7.6
3%
Multi-Year
Operating
Projects
$8.3
3%
Services &
Supplies
$51.0
17%
Offsets &
Transfers
$28.7
9%
Capital
Improvement
Program
$66.9
22%
TOTAL:
$301.8
Water Current Five-Year Forecast ($ thousands)
71 Water Fund Five-Year Forecast
FY2025/26
Budgeted
FY2026/27
Projection
FY2027/28
Projection
FY2028/29
Projection
FY2029/30
Projection
Revenues 138,174 138,008 137,759 138,036 138,032
Expenditures 176,386 168,116 167,410 169,919 171,237
Annual Surplus/(Deficit) (38,212) (30,108) (29,651) (31,883) (33,205) Use of CIP Reserve 25,907
Ending Fund Balance 31,062 954 (2,790) (34,672) (67,877) Wastewater Current Five-Year Forecast ($ thousands)
72 Wastewater Fund Five-Year Forecast
FY2025/26
Budgeted
FY2026/27
Projection
FY2027/28
Projection
FY2028/29
Projection
FY2029/30
Projection
Revenues 46,174 46,219 46,237 46,316 46,410
Expenditures 50,752 57,701 51,615 50,528 48,964
Annual Surplus/(Deficit) (4,579) (11,482) (5,378) (4,212) (2,554) Ending Fund Balance 18,880 7,398 2,020 (2,192) (4,746)
DOU Reduction Goals
73 Water Fund
Operating Expenditures 3%
Multi-year Operating Program 20%
Capital Improvement Program 36%
Total Reduction of Expenditures 8%
Wastewater Fund
Operating Expenditures 5%
Multi-year Operating Program 13%
Capital Improvement Program 42%
Total Reduction of Expenditures 9%
Storm Drain Current Year Budget ($ millions)
74 Storm Drain Fund Budget
Appropriations $48.1
Revenues $51.4
Net Use of / (Contribution to)
Fund Balance
($3.3)
Full-Time Equivalent Positions 143*
*22 FTE with 6011 Primary Fund Designation are Completely Supported by Fund 6021
Storm Drain Property Fee
Fund Budget
Appropriations $19.9
Litigation Reserve Distribution &
Reimbursements
$13
Revenues $20.3
Net Use of / (Contribution to)
Fund Balance
$12.6
Full-Time Equivalent Positions 0*
*22 FTE with 6011 Primary Fund Designation are Completely Supported by Fund 6021
FY26 Budget - Zero General Fund Dollars
Preserving Core Services & Advancing Council Priorities 75 Deliver reliable services
• Infrastructure investment
• Water rights and supply
• State Combined Sewer System permit updates
Public health and safety
• Safe drinking water
• Flood protection
• Sanitary living conditions (sewage)
• Fire protection
Financial viability
• FY28 Water and Wastewater Rate Adjustments
• Begin Drainage Fund rate adjustment planning, FY29/FY30
Questions & Comments