Proposed 2026-27
Budget & 2026-31
Capital
Improvement Plan
June 15, 2026
1 Budget Timeline
December 2025 February 2026 April 2026 June 2026
Budget
Kickoff
February 23
FY 2025-26 Mid-Year
Budget Updates
April 20
2026-27
Budget Preview
GF and CIP
June 1
Proposed Budget
Public Hearing
June 15
Budget Adoption
Public Hearing
Budget Process
FY 2026-27 Citywide Budget (in millions)
3 Proposed FY 2026-27
Citywide Budget
$356.3 million
General
Fund $183.6
51%
Enterprise Funds
(Sewer/Storm)
$74.9
21%
Capital Projects
Fund
$66.3
19%
Other Funds,
$31.5
9%
General Fund
FY 2026-27 Proposed Budget - Revenues
4 FY 2026-27
Proposed Budget
General Fund Revenues
$173.9 million
Property Tax
49%
Sales Tax
16%
RPTT 5%
Business License 5%
Other Taxes 4%
Permits, Fines,
Fees 9%
2%
4%
3% 3%
Property Tax
Sales Tax
Property Transfer Tax (RPTT)
Business License Tax
Other Taxes
Permits, Fees, and Fines
Intergovernmental
Interest and Other
In-Lieu Charges
Transfers
General Fund
FY 2026-27 Potential Budget - Revenues
5 FY 2026-27
Proposed Budget
General Fund Revenues
$173.9 million
+VLF Backfill
$4.6 M
$178.5 million
Property Tax
50%
Sales Tax
16%
RPTT 5%
Business License 4%
Other Taxes 4%
Permits, Fines,
Fees 9%
2%
4%
3% 3%
Property Tax
Sales Tax
Property Transfer Tax (RPTT)
Business License Tax
Other Taxes
Permits, Fees, and Fines
Intergovernmental
Interest and Other
In-Lieu Charges
Transfers
General Fund
FY 2026-27 Proposed Budget - Expenditures
6 FY 2026-27
Proposed Budget
General Fund Expenditures
$190.6 million
35%
22%
13%
6%
5%
1% 10% 4% 4%
Police
Fire
Parks and Recreation
Public Works
Library
Community Development
General Admin
Non-Departmental
Transfers
General Fund
FY 2026-27 Proposed Budget
7 GENERAL FUND 2025-26 Adopted
Budget
2026-27
Proposed
Budget
Change in $ Change in %
REVENUES
Total Revenues 175.8 173.9 (1.9) -1.1%
EXPENDITURES
Personnel Costs 80.7$ 83.7$ 2.9$ 3.6% Pension Unfunded Liability 13.6$ 14.3$ 0.7$ 5.0% Non-Personnel Operating Expenses 42.3$ 44.9$ 2.5$ 6.0% SMC Fire and Legacy Costs 38.8$ 40.7$ 2.0$ 5.1% Operating Expenses 175.4$ 183.6$ 8.2$ 4.7% Transfers to CIP 8.9$ 4.0$ (5.0)$ -55.7% Transfers Out - Debt Service & Other 3.5$ 3.1$ (0.3)$ -9.9% Total Expenditures 187.7 190.6 2.9 1.5% Surplus / (Deficit) (11.9) (16.8)
General Fund - Beginning Fund Balance 119.5 89.4
Transfer to Capital Invesment Reserve (25.0)
General Fund - Ending Fund Balance $87.6 $72.6
General Fund
FY 2026-27 Potential Budget
8 GENERAL FUND 2025-26 Adopted
Budget
2026-27
Proposed
Budget
Change in $ Change in %
REVENUES
Total Revenues 175.8 178.5 2.7 1.5%
EXPENDITURES
Personnel Costs 80.7$ 83.7$ 2.9$ 3.6% Pension Unfunded Liability 13.6$ 14.3$ 0.7$ 5.0% Non-Personnel Operating Expenses 42.3$ 44.9$ 2.5$ 6.0% SMC Fire and Legacy Costs 38.8$ 40.7$ 2.0$ 5.1% Operating Expenses 175.4$ 183.6$ 8.2$ 4.7% Transfers to CIP 8.9$ 4.0$ (5.0)$ -55.7% Transfers Out - Debt Service & Other 3.5$ 3.1$ (0.3)$ -9.9% Total Expenditures 187.7 190.6 2.9 1.5% Surplus / (Deficit) (11.9) (12.2)
General Fund - Beginning Fund Balance 119.5 89.4
Transfer to Capital Invesment Reserve (25.0)
General Fund - Ending Fund Balance $87.6 $77.2
General Fund Reserves
9 GENERAL FUND (in milions)
2025-26
Year End
Projection
2026-27
Proposed
Budget
Beginning Fund Balance 119.5$ 87.6$
Total Revenues 177.2 173.9
Total Expenditures (184.1) (190.6)
Net Change - Surplus/(Deficit) (6.9) (16.8)
Transfer to Capital Investment Reserve (25.0)
Ending Fund Balance - Estimated 87.6$ 70.8$
10 FY 2026-27 Proposed Capital Budget
and
Five-Year Capital Improvement Plan (CIP)
FY 2026-27 Proposed Capital Budget
and Five-Year CIP
The following is a breakdown of CIP expenses by program areas:
11 CAPITAL PROJECTS 2026-27 Proposed
Budget 2027-28 Plan 2028-29 Plan 2029-30 Plan 2030-31 Plan 2026-31 5-Year Total
Bikeway/Pedestrian $ 1,578,636 $ 1,560,000 $ 1,360,000 $ 1,350,000 $ 1,250,000 $ 7,098,636 Bridges 75,000 75,000 75,000 75,000 75,000 375,000
Buildings 9,520,000 6,570,000 4,170,000 4,650,000 5,150,000 30,060,000 Misc/Other 655,000 1,550,000 1,000,000 - - 3,205,000 Parks 2,100,677 2,350,000 3,175,000 3,625,000 2,225,000 13,475,677 Sanitary Sewer 39,775,000 44,275,000 47,175,000 48,055,000 48,775,000 228,055,000 Stormwater 3,200,000 3,550,000 3,550,000 3,550,000 3,550,000 17,400,000 Streets 8,967,600 8,738,000 9,208,000 9,168,000 8,988,000 45,069,600 Traffic 400,000 950,000 650,000 2,050,000 450,000 4,500,000 Grand Total $ 66,271,913 $ 69,618,000 $ 70,363,000 $ 72,523,000 $ 70,463,000 $ 349,238,913 City Council Actions
12 Adopt resolutions to approve:
• Fiscal Year 2026-27 Operating and Capital Budgets;
• Fiscal Year 2026-27 Gann Appropriations Limit;
• Fiscal Years 2026-31 Capital Improvement Program; and • Fiscal Year 2025-26 Year-End Budget Adjustments.
Thank you
Abby Veeser
Finance Director
[email protected]
650-522-7102
13