FY 2026/27 Budget Update
August 18, 2026
City Council
Budget Balancing Strategies
FY
2026/27
FY
2027/28
Resources:
General Fund (Incl. Measures E & G)
$193,071,689
$199,949,180
Appropriations:
Operating Expenditures
Allocation (12% Reserve Level)
205,201,689
1,433,603
213,554,771
820,954
Total Appropriations
206,635,292
214,375,725
Imbalance
(13,564,012)
(14,426,545)
Budget Balancing Strategies:
Fund Balance
4,016,222
3,947,645
Reallocate CIP
580,689
0 Police Develop Impact Fee
1,234,000
2,467,000
Vacancy Factor
7,733,100
8,011,900
Total Budget Balancing Strategies
13,564,012
14,426,545
2 Projected Biennial Budget Fund Balance
$1,092,522
Sr. Park Maintenance Worker (Year 1 & Year 2)
(258,800)
Park Maintenance Worker (Year 1 & Year 2)
(227,800)
Ciclovia
(45,000)
Neighborhood Grants
(42,000)
Small Business Grants
(105,000)
Rental Assistance
(100,000)
Projected Remaining Fund Balance
$313,922
Additional Program Initiatives Presented to the Finance Committee
Sr. Park Maintenance Worker & Park Maintenance Worker
Staff presented the below alternatives.
Add both positions now;
Add one position now and one at the mid-year process; or Add both positions at the mid-year process.
The Finance Committee Members recommended Option 1.
4 Ciclovia
Staff presented the below alternatives.
Refer Ciclovia to apply through the Community Sponsorship Program and maintain the program budget at $150,000; Refer Ciclovia to apply through the Community Sponsorship Program and increase the program budget to $200,000; or Provide a direct contribution to Ciclovia.
The Finance Committee recommended Option 2.
5 Neighborhood Grants
Staff presented the request by City Council to double this funding from $42,000 to $84,000.
The Finance Committee did not recommend additional funding at this time and would like to include a review of the program during the mid-year budget process. 6 Small Business Grants
Staff presented the request by City Council to double this funding from $105,000 to $210,000.
The Finance Committee did not recommend additional funding at this time and would like to include a review of the program during the mid-year budget process. 7 Rental Assistance
Staff presented the request by City Council to increase this funding from $500,000 to $600,000.
Staff does not recommend additional funding due to available grant funding of $200,000 that must be expended by September 30, 2026. This program has a total of $700,000 for the remainder of the fiscal year. 8 Projected Biennial Budget Fund Balance
$1,092,522
Sr. Park Maintenance Worker (Year 1 & Year 2)
(258,800)
Park Maintenance Worker (Year 1 & Year 2)
(227,800)
Community Sponsorship Program
(50,000)
Projected Remaining Fund Balance
$555,922
Program Initiatives Recommended by the Finance Committee 9 Capital Improvement Program (CIP) Investment Over the Years 10 Infrastructure Projects
Amount
Striping locations include (not a comprehensive list):
E. Market St.
E. Alisal St.
Williams Rd.
Boronda Rd.
$500,000
Street Lighting locations include (not a comprehensive list):
374,000
Sanborn Rd.
Nantucket Blvd.
E. Market St.
Constitution Blvd.
Rossi St.
Williams Rd.
Bernal Dr.
Quilla St.
Hebbron St.
Abbott St.
Solar lights:
1. Elvee Dr.
126,000
Potholes (to be determined):
400,000
Adopt a Tree Project (to be determined):
100,000
Total
$1,500,000
Additional Infrastructure Improvement Initiatives
11 Additional Infrastructure Research
Rectangular Rapid Flashing Beacon (RRFB)
East Laurel Drive & Granada Avenue
$750K - $800K
12 Reserves
Current
Recommended
Remaining
General Fund
24,385,309
24,385,309
OPEB
10,000,000
10,000,000
Infrastructure
4,600,000
(1,500,000)
3,100,000
Facilities Maintenance
1,500,000
1,500,000
Total
40,485,309
(1,500,000)
38,985,309
Reserve % of GF Expenditures
21%
20%
General Fund Reserve Levels
13 14