TO: RULES AND OPEN
GOVERNMENT COMMITTEE
FROM: Jim Shannon
SUBJECT: 2026-2027 Preliminary General
Fund Forecast and Budget
Priorities City Council Study
Session Date Change
DATE: December 17, 2025
Approved Date:
12/17/25
RECOMMENDATION
Revise the date for the 2026-2027 Preliminary General Fund Forecast and Budget Priorities City Council Study Session from January 23, 2026 to February 5, 2026 from 1:30 p.m. to 4:30 p.m.
ANALYSIS
At its meeting on October 22, 2025, the Rules and Open Government Committee approved the 2025-2026/2026-2027 City Budget Calendar and Budget Study Session Schedule, which also set the date for the 2026-2027 Preliminary General Fund Forecast and Budget Priorities Study Session on January 23, 2026.
Since then, the Administration’s analysis of softening economic conditions, the corresponding negative impact on General Fund revenues, and continued cost pressures all point to an ongoing General Fund shortfall in 2026-2027 significantly greater than previously anticipated. To allow for sufficient preparation time for both the Administration and City Council, the Study Session on the 2026-2027 Preliminary General Fund Forecast and Budget Priorities is recommended for Thursday, February 5, 2026, from 1:30 p.m. to 4:30 p.m., instead of the original date on January 23, 2026.
As noted back in October, this Study Session will provide the City Council with a preliminary look at the forecasted budget challenges that will impact the 2026-2027 Proposed Budget development process and provide an opportunity for the City Council to weigh in on key budget priorities that will inform the development of the Mayor’s March Budget Message for Fiscal Year 2026-2027. The Mayor will recommend the specific agenda and content at the Rules and Open Government Committee in January 2026.
RULES COMMITTEE: 1/7/26
ITEM: B.2
RULES AND OPEN GOVERNMENT COMMITTEE
December 17, 2025
Subject: 2026-2026 Preliminary General Fund Forecast and Budget Priorities City Council Study Session Schedule Date Change
COORDINATION
The proposed Study Session schedule change has been coordinated with the Mayor’s Office.
JIM SHANNON
Budget Director
For questions, please contact Jim Shannon, Budget Director, City Manager’s Office, at (408) 535-8144.