Agenda packet — Santa Cruz City Council, June 9, 2026 (part 6 of 6)

33.158
Council Direction
• City Council committed to partnering with the County
of Santa Cruz and other jurisdictions to oppose offshore oil & gas development and deep-sea mining. • City contracted to help coordinate local policy and
advocacy efforts to protect our coastline.

Page 19 of 21 ends

33.159
What is being proposed?

Page 19 of 21 ends

• Add a description of the purpose, intent, and findings that justify the proposed ordinance and define relevant terms. (SCMC §24.06.093)
• Add requirements that any zoning changes to
accommodate on-shore support facilities for deep-sea mining are subject to a vote of the people. (SCMC §24.06.090, 24.06.093)
• Add to existing prohibitions on on-shore support
facilities for offshore oil & gas to also include prohibitions on support facilities for deep-sea mining. (SCMC §24.10.1525 and 24.20.1620)

33.160
Why this approach?
Scope of the ordinance stays within the enforcement authority of the City Strong legal and policy advantages of requiring a vote
Efficacy of this approach in similar historical circumstances

33.161
PRESENTATION | CITY OF SANTA CRUZ
Ongoing Actions
June 9, 2026
June 23, 2026
City Council 1st readingCity Council 2nd reading
Next Steps
Save Our Shores public engagementLocal, state and federal-level advocacyCA Coastal Commission review and approval of LCP amendments 30-days post adoption Non-LCP Amendments take effect
Following Coastal Commission approval LCP Amendments take effect

33.162
Recommendation:

1. Introduce for publication an ordinance adding Section 24.06.093 to Chapter 24.06 – Zoning Map and Text Amendments and amending Sections 24.06.090 and 24.10.1620 of the Santa Cruz Municipal Code related to adding protections against on-shore facilities supporting off-shore oil & gas drilling and deep-sea mining and exploration; and

2. Introduce for publication an ordinance amending the Local Coastal Program Implementation Plan and amending Section 24.10.1525 of the SCMC to add protections against on-shore facilities supporting deep-sea mining and exploration; and

3. Find that the proposed amendments are categorically exempt from California Environmental Quality Act (CEQA) review, pursuant to: Class 7 Exemption (14 CCR § 15307); Class 8 Exemption (14 CCR §15308); and the Common Sense Exemption (14 CCR § 15061(b)(3)).

33.163
City Council

AGENDA REPORT
DATE: 05/21/2026
AGENDA OF: 06/09/2026
DEPARTMENT: Water
SUBJECT: Adoption of 2025 Urban Water Management Plan and Water Shortage Contingency Plan (WT)
LOCATION: Water Service Area
RECOMMENDATION: Motion to:
1) Adopt a resolution adopting the 2025 Urban Water Management Plan and authorizing the Water Director to file a copy of the plan with the California Department of Water Resources; and 2) Adopt a resolution adopting the Water Shortage Contingency Plan and authorizing the Water Director to file a copy of the Water Shortage Contingency Plan, as a component of the 2025 Urban Water Management Plan, with the California Department of Water Resources.

BACKGROUND: As described in the Public Hearing on 2025 Urban Water Management Plan, Assembly Bill 797, enacted in 1983 and incorporated into the California Water Code, requires that every urban water supplier providing water for municipal purposes to more than 3,000 customers or supplying more than 3,000 acre-feet of water annually (~1 billion gallons per year) to prepare and adopt an Urban Water Management Plan (UWMP), and to update it every five years. The plan addresses a wide range of topics, including the City’s water service area; current and projected population; existing and planned water supplies; historical, current, and projected water demands; water service reliability assessments; water use efficiency measures; and the Water Shortage Contingency Plan (WSCP).

The Water Shortage Contingency Plan is a required component of the Urban Water Management Plan and describes how the City will manage its water system during drought-related shortages.

It also outlines procedures for conducting a water supply and demand assessment, compliance and enforcement strategies, and actions to be undertaken in response to a catastrophic interruption of water supplies, including a regional power outage, earthquake or other emergency. Although the Water Shortage Contingency Plan is a component of the Urban Water Management Plan, it must be considered and adopted independently.

DISCUSSION: Water suppliers must hold a public hearing before adopting a UWMP and a WSCP. The public hearing provides an opportunity for the public to provide input before these plans are adopted by City Council.

34.1 All cities and counties that receive water service from the City of Santa Cruz must be sent a notice of the public hearing. In addition to the City of Santa Cruz, the Water Department provides water service to a portion of the City of Capitola and portions of unincorporated County of Santa Cruz. These jurisdictions were sent written notice regarding the plan review and update process well in advance of 60 days before the public hearing, in accordance with California Water Code section 10621(b).

Prior to the public hearing, the draft plans were made available for public inspection, review, and comment on the City’s website, at the Water Department office, and at the City’s Central Library beginning on May 8, 2026.

The draft plans were also circulated, along with notice of the time and place of the public hearing, to the City of Capitola and the County of Santa Cruz as required by law. Notification letters included the location where the draft 2025 UWMP and WSCP could be viewed, the hearing schedule, and contact information of the preparer for the City. Copies of these letters are included in Appendix U of the Urban Water Management Plan.

In addition to these jurisdictions, the City provided the notice of the public hearing to the Association of Monterey Bay Area Governments, local elected officials, the Santa Cruz Local Agency Formation Commission, University of California, Santa Cruz, and to all major public water utilities in Santa Cruz County, including the following:
 Soquel Creek Water District
 San Lorenzo Valley Water District
 Scotts Valley Water District
 Central Water District
 City of Watsonville
The public hearing was noticed to the public in the local newspaper as prescribed in Government Code 6066. The notice included the time and place of the hearing, as well as the various locations where the plans were made available for public review. A copy of the notices of the public hearing published in the Santa Cruz Sentinel newspaper are included in Appendix U.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The preparation and adoption of UWMPs is statutorily exempt from CEQA per California Water Code Section 10652.

HEALTH IN ALL POLICIES (HiAP): The three pillars of Health in All Policies, sustainability, equity, and public health, are integral to multiple elements of the 2025 Urban Water Management Plan, including Water Shortage Contingency Plan. Through discussion of the City’s ongoing demand management (conservation) programs, the 2025 Urban Water Management Plan aligns with the pillar of sustainability. The analysis of the social, economic, and demographic factors within our service area help support the pillar of equity in the provision of water. And finally, the pillar of public health aligns with the plan in the description of the Water Departments' efforts to preserve and secure reliable and resilient water supplies.

34.2 FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: No

2. This recommendation requires a budget adjustment: No

3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: There is no fiscal impact associated with the proposed action; however, in order for an urban water supplier to be eligible for funds from any state water grants or loans, the agency must have a current Urban Water Management Plan on file that has been determined by DWR to address the requirements of the Water Code and must also comply with the requirements of the Water Conservation Act of 2009. The Water Department must report compliance with its 2020 water use target in its Urban Water Management Plan in order to receive funding from state programs. Currently, the Water Department has $87.3 million in state grants and loans funding five active projects.

Prepared By:

Sarah Easley Perez
Principal Planner
Submitted By:

Heidi Luckenbach
Water Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION TO ADOPT URBAN WATER MANAGEMENT PLAN.DOCX

2. RESOLUTION TO ADOPT THE WATER SHORTAGE CONTINGENCY PLAN.DOCX

34.3 RESOLUTION NO. NSRESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ ADOPTING THE 2025 URBAN WATER MANAGEMENT PLAN AND AUTHORIZING THE

DIRECTOR OF THE WATER DEPARTMENT TO FILE A COPY WITH THE CALIFORNIA

DEPARTMENT OF WATER RESOURCES
WHEREAS, the California Legislature enacted Assembly Bill 797 (Water Code Section 10610 et seq., known as the Urban Water Management Planning Act) during the 1983-1984 Regular session, and as amended subsequently, which mandates that every supplier providing water for municipal purposes to more than 3,000 customers or supplying more than 3,000 acrefeet of water annually, prepare an Urban Water Management Plan (“Plan”); and, WHEREAS, the City of Santa Cruz is an urban water supplier providing service to over 24,000 customers and is therefore required to prepare an updated Plan every five years; and, WHEREAS, the UWMP requires water agencies, like the City, to evaluate and describe their water resource supplies and projected needs over a twenty-year planning horizon, and to address a number of related subjects including water conservation, water service reliability, water recycling, opportunities for water transfers, and contingency plans for drought events within the Plan; and,
WHEREAS, beginning with the 2010 Plans, Senate Bill X7-7 of 2009 (California Water Code Section 10608) requires each urban retail water supplier to include information in their Plan on its baseline daily per capita water use and future water use targets to support the goal of reducing the state’s per capita urban water consumption by twenty percent; and, WHEREAS, the City of Santa Cruz achieved its targeted reduction for 2020 and fully complies with all requirements of Senate Bill X7-7; and, WHEREAS, the City must complete a Plan for it to be eligible for State grants, loans, and drought assistance; and,
WHEREAS, pursuant to the Urban Water Management Planning Act, the City’s Plan must be made available for public review and a public hearing must be held prior to adopting the Plan, and then the Plan must be filed with the California Department of Water Resources within 30 days of adoption; and,
WHEREAS, the Urban Water Management Planning Act requires that the urban water supplier, like the City, shall make any amendments or changes to its Plan which are required by California Department of Water Resources review; and,
WHEREAS, the City has therefore prepared and circulated for public review a draft 2025 Urban Water Management Plan, and a properly noticed public hearing regarding the subject plan was held by the City Council on June 9, 2026; and,

34.4 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz that it hereby adopts the 2025 Urban Water Management Plan and authorizes the Water Director to file the Plan with the California Department of Water Resources.

PASSED AND ADOPTED this 9th day of June 2026, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: _____________________________
Fred Keeley, Mayor
ATTEST: __________________________
Bonnie Bush, City Clerk Administrator

34.5 RESOLUTION NO. NSRESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ

ADOPTING THE WATER SHORTAGE CONTINGENCY PLAN
WHEREAS, the California Legislature enacted Assembly Bill 797 (Water Code Section 10610 et seq., known as the Urban Water Management Planning Act) during the 1983-1984 Regular session, and as amended subsequently, which mandates that every supplier providing water for municipal purposes to more than 3,000 customers or supplying more than 3,000 acrefeet of water annually, prepare an Urban Water Management Plan (the “Plan”); and, WHEREAS, the City of Santa Cruz is an urban water supplier providing service to over 24,000 customers and is required to prepare an updated Plan every five years; and, WHEREAS, the Water Shortage Contingency Plan, a detailed proposal for how an urban water supplier, like the City, intends to act in case of a water shortage condition, is a required component of the Plan; and,
WHEREAS, California Department of Water Resources guidance for the 2025 Plan specifies that the Water Shortage Contingency Plan serves as a stand-alone document that can be modified independently of the Plan if adopted by the water supplier separately; and, WHEREAS, the Urban Water Management Planning Act requires that a t Plan and Water Shortage Contingency Plan be prepared every five years and submitted to California Department of Water Resources; and,
WHEREAS, the Urban Water Management Planning Act requires that the urban water supplier, like the City, shall make any amendments or changes to its Water Shortage Contingency Plan which are required by California Department of Water Resources review; and, WHEREAS, the City has therefore prepared and circulated for public review a draft Water Shortage Contingency Plan, as a component of the draft 2025 Plan as well as a separate standalone document, and a properly noticed public hearing regarding the subject Water Shortage Contingency Plan was held by the City Council on June 9, 2026; and, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz that it hereby adopts the Water Shortage Contingency Plan as a stand-alone document and authorizes the Water Director to file the Water Shortage Contingency Plan, as a component of the 2025 Urban Water Management Plan, with the California Department of Water Resources.

34.6 PASSED AND ADOPTED this 9th day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: _____________________________
Fred Keeley, Mayor
ATTEST: __________________________
Bonnie Bush, City Clerk Administrator

34.7 City Council

AGENDA REPORT
DATE: 05/21/2026
AGENDA OF: 06/09/2026
DEPARTMENT: Finance
SUBJECT: Fiscal Year 2027 Proposed Budget Adoption (FN) LOCATION: Citywide
RECOMMENDATION: Motion to:
1) Adopt the Fiscal Year (FY) 2027 Budget, including the Capital Investment Program (CIP), effective July 1, 2026; authorize the City Manager to allocate within the applicable funds the FY 2027 Changes to the Proposed Budget to the appropriate accounting classification; and approve related and applicable transfers in/out between funds; and authorize the Finance Director to create additional appropriations to provide for commitments carried over from the prior fiscal year, including contract and purchase order encumbrances and unexpended project balances, so long as there is a sufficient fund balance to finance these commitments; 2) Approve the CIP project exclusions from the Public Art transfer calculation for FY 2027; and 3) Accept the Water Commission’s recommendations regarding the Water Department’s FY 2027 Operating and Capital Investment Program.

BACKGROUND: The City Charter requires the City Manager to annually prepare the proposed budget for the start of the new fiscal year and transmit it to the City Council (Council) at or before its first Council Meeting of June. The FY 2027 Proposed Operating Budget and Capital Investment Program (CIP) (combined and referred to hereafter as the Proposed Budget) were posted to the City’s website on May 15, 2026. The Proposed Budget can be accessed online at https://www.santacruzca.gov/Government/City-Departments/Finance/City-Budget/Fiscal-Year2027-Budget, and/or at the City Clerk’s Office at 809 Center Street, Room 8, and/or at the Downtown Library.

The City Council received an overview of the Proposed Budget as a General Business item during its May 26, 2026 meeting. At which time, the Mayor, Vice Mayor, and Councilmembers asked questions of, and gave direction to, City staff in relation to budgetary decisions and priorities for FY 2027.

The May 26, 2026 Proposed Budget agenda report attachments included the CIP projects to exclude from the Public Art transfer calculation for FY 2027 and the Parks and Recreation

35.1.1 Commission Chairperson’s letter regarding the Proposed Budget. The listing of CIP projects to exclude from the Public Art transfer calculation for FY 2027 for the Public Works and Water Departments are included again in this agenda report.

The Chairperson of the Transportation and Public Works Commission has drafted a letter to Council regarding the Proposed Budget attached as Exhibit B. Additionally, the Water Commission’s recommendations and details of the Proposed Budget are attached as Exhibit C.

The Final Adopted Operating Budget and Capital Investment Program (CIP) Budget (hereafter referred to as the Adopted Budget) will be published online on the City’s Budget webpage after all the approved changes have been made.

DISCUSSION: If approved, the Adopted Budget would include the Proposed Budget amounts above with the following changes by fund:

Fund Change to Revenue Budget Change to Expenditure
Budget
Fund 101: General Fund 205,300 205,300
Fund 122: Co-op Retail
Management 467,722 -
Fund 130: City Public Trust
Fund - 594,121
Fund 136: Economic
Development Trust 15,000 3,400,000
Fund 141: CASp Certification
and Training Fund 21,000 -
Fund 150: Housing In-lieu
Program 28 -
Fund 221: Gasoline Tax (9,999) 100,968
Fund 243: Northeast Quadrant
- Parks & Rec Fee - 80,000
Fund 249: Parks & Recreation
Tax Combined Fund - (468,500)
Fund 311: General Capital
Improvement Projects (308,500) (272,400)
Fund 316: CIP - Santa Cruz
Library - 10,460,000
Fund 350: General Fund CIP
Reserve - 205,300
Fund 931: McCaskill - Local
History - 12,000
Fund 943: SA Capital Projects
and Capital Assets - 150,000
Fund 951: Library Joint
Powers Authority 19,800 186,957
Total Citywide 410,351 14,653,746

35.1.2 The reasoning behind changes from the Proposed Budget to the Adopted Budget is included as an attachment to this agenda report titled “FY 2027 Changes to the Proposed Budget.” The Adopted Budget has a Citywide expenditure budget of $494,913,507 and a General Fund expenditure budget of $169,962,307. The total Citywide CIP budget was $68,750,374, with an additional $5,698,397 in vehicle and other capital equipment budgets across the City’s funds.

Any funding approved by the Council will not be implemented until the required meet and confer process is completed in accordance with City obligations under the MMBA and before any contract returns to Council in open session. In addition, any expenditures from Councilapproved funding in this budget will be made in accordance with federal, state, and local law and all purchasing and administrative policies and procedures.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed Council actions are not considered “projects” under CEQA Guidelines Section 15378(b). (“Project does not include . . . (2) Continuing administrative . . . activities, such as . . . general policy and procedure making . . . [or] (4) The creation of government funding mechanisms or other government fiscal activities . . . [or] (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.”)
HEALTH IN ALL POLICIES (HiAP): The FY 2027 Annual Budget furthers the City in its steps towards meeting its Health in All Policies (HiAP) goals. The ways in which City departments work to meet HiAP goals are displayed in the budget document, with accomplishments, goals, performance measures, and workload indicators that are connected to HiAP pillars marked with a respective icon for equity, public health, and sustainability. City staff incorporated HiAP goals into the CIP prioritization process. The CIP projects that had a moderate or substantial impact on furthering HiAP goals were given additional points in the scoring process, which made them more of a contender to receive funding from the General Fund than if the project had no or only a slight impact on these goals.

FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: Yes

2. This recommendation requires a budget adjustment: No

3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: The FY 2027 Adopted Budget includes $494,913,507 of total appropriations. Included in the operating budget is the City’s Primary Operating General Fund of $169,962,307, which supports clean, safe, and resilient neighborhoods, emergency response, housing and homelessness services, and access to community resources and recreational programs and the internal services required to support those efforts. The total CIP is $68,750,374, which supports the City’s natural and built infrastructure to be more resilient and supports the City’s livability and economic recovery.

Prepared By:

Emily Burton
Finance Manager - Budget
Submitted By:

Elizabeth Cabell
Finance Director
Approved By:

Matt Huffaker
City Manager

35.1.3 ATTACHMENTS:

1. FY 2027 BUDGET ADOPTION RESOLUTION.DOCX

2. EXHIBIT A CHANGES TO THE PROPOSED BUDGET.PDF

3. EXHIBIT B TPWC FY 2027 BUDGET RECOMMENDATION LETTER TO CITY COUNCIL.PDF

4. EXHIBIT C WATER COMMISSION RECOMMENDATION LETTER TO COUNCIL.PDF

5. EXHIBIT D WATER DEPARTMENT FY 2027-31 FINANCIAL PRO FORMA.PDF

6. EXHIBIT E PW FY 2027 PUBLIC ART CIP EXEMPTIONS.PDF

7. EXHIBIT F WT FY 2027 PUBLIC ART CIP EXEMPTIONS.PDF

35.1.4 RESOLUTION NO. NS-XX,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ ADOPTING A BUDGET FOR FISCAL YEAR 2027
WHEREAS, the City of Santa Cruz has a responsibility to its citizens to provide for their well-being through essential services, including public safety, infrastructure, and community resources;
WHEREAS, the proposed budget for Fiscal Year 2027 has been developed through a transparent and participatory process, including community forums and public hearings; WHEREAS, the adoption of this budget is essential for ensuring the continued operation of City services and the implementation of vital projects; WHEREAS, the City of Santa Cruz is committed to fiscal sustainability and transparency, including balancing revenues and expenditures;
WHEREAS, the City Council seeks to provide a budget that supports the long term financial health and stability of the City, and envisions a vibrant, healthy, and resilient community for all;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz as follows:

That the budget of the City of Santa Cruz for Fiscal Year (FY) 2027, including the Capital Investment Program (CIP), as proposed in that certain document entitled “City of Santa Cruz Proposed Annual Budget Fiscal Year 2027,” on file with the City Clerk, is hereby adopted for FY 2027, effective July 1, 2026, with the addenda thereto as determined by the City Council and detailed in Exhibit A: Changes to the Proposed Budget
BE IT FURTHER RESOLVED that the Finance Director is authorized to create additional appropriations in order to provide for necessary commitments carried over from the prior fiscal year, including contract and purchase order encumbrances and unexpended project balances, so long as there is a sufficient fund balance to finance these commitments.

PASSED AND ADOPTED this 9th day of June, 2026 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

35.1.5 RESOLUTION NO. NS-XX,XXX
APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator

35.1.6 FY 2027 Budget
FY 2027 Changes to the Proposed Budget
City Manager’s Office

1. Narrative change: Added FY 2027 goal per Council direction.

Page number in the
Proposed Budget
Proposed Budget
Text Adopted Budget Text
167 N/A Stand up the Office of Well-being with two
near-term actions: (1) Neighborhood Activation
Microgrant Program and (2) Community
Indicators Dashboard 🌲⚖💓

2. This revenue increase coincides with the expenses for the Co-op Retail Management Fund.

Page
number in
the
Proposed
Budget
GL Account and Description Proposed
Budget
Amount
Adopted
Budget
Amount
Change from
Proposed
Budget
188 Revenue 122-10-05-1506-41932
CRM assessment
0 467,722 467,722

3. There was an Eden issue wherein the revenue entered did not show in the proposed budget. To fix the issue, a new project was created which required revenue and expenditure to be requested.

Page
number in
the
Proposed
Budget
GL Account and Description
(Project Title)
Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
Revenue 136-10-05-5590-46201
t102721-665-1026-0
Rents – real property
(Vacant Storefront
Activation Pilot Program)
0 15,000 15,000
188 Expenditure 136-10-05-5590-52151
t102721-100-2020
Program services
(Vacant Storefront
Activation Pilot Program)
0 200,000 200,000

35.1.7 FY 2027 Budget

4. The funding source for project c102707, Ocean Street Beautification, was inadvertently left off the Proposed Budget document and Fact Sheet for the project; the corresponding transfer in also needs to be budgeted.

Page
number in
the
Proposed
Budget
GL Account and Description
(Project Title)
Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
Revenue 311-10-05-9990-43353
c102707-509-5098-0
Redevelopment
Contributions
(Ocean Street
Beautification)
0 150,000 150,000
371
Expenditure 943-00-00-0000-59906
Contributions from SA to City
0 150,000 150,000

5. Add transfers out from the Economic Development Trust Fund, Fund 136, to Fund 311 for Capital Investment Program project funding.

Page
number in
the
Proposed
Budget
GL Account and Description
(Project Title)
Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
Expenditure 136-00-00-0000-59103
To General Capital
Improvement Fund
(c102701 DLAHP Commercial
Tenant Improvements)
0 800,000* 800,000
Expenditure 136-00-00-0000-59103
To General Capital
Improvement Fund
(c102702 Pacific Station North
Commercial Tenant
Improvements)
0 400,000* 400,000
Expenditure 136-00-00-0000-59103
To General Capital
Improvement Fund
(c102703 Pacific Station South
Tenant Improvements)
0 500,000* 500,000
129
Expenditure 136-00-00-0000-59103
To General Capital
Improvement Fund
(c102715 Downtown Library
Phase II)
0 1,500,000* 1,500,000

35.1.8 FY 2027 Budget

6. Add transfers out from the City Public Trust Fund, Fund 130, and Fund 316, CIP- Santa Cruz Library, to Fund 311 to provide funding for CIP project, c102715 Downtown Library Phase II.

Page
number in
the
Proposed
Budget
GL Account and Description
(Project Title)
Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
129 Expenditure 130-00-00-0000-59103
To General Capital
Improvement Fund
(c102715 Downtown Library
Phase II)
0 594,121 594,121
121 Expenditure 316-00-00-0000-59191
Intra-entity fund transfer
out
(c102715 Downtown Library
Phase II)
0 10,460,000 10,460,000
Community Development

7. Budgeting omitted revenue for Fund 141 for CASp Certification and Training Fund.

Page
number in
the
Proposed
Budget
GL Account and Description Proposed
Budget
Amount
Adopted
Budget
Amount
Change from
Proposed
Budget
199 Revenue 141-50-70-2303-44169
Business license fee – AB 1379
0 21,000 21,000

8. Budgeting omitted revenue for Fund 150 for Housing In-Lieu Program.

Page
number in
the
Proposed
Budget
GL Account and Description Proposed
Budget
Amount
Adopted
Budget
Amount
Change from
Proposed
Budget
199 Revenue 150-50-00-0000-46190
Interest earnings- other
0 28 28
Information Technology

9. Narrative change: Added FY 2027 goal per Council direction.

35.1.9 FY 2027 Budget
Page number in the
Proposed Budget
Proposed Budget
Text Adopted Budget Text
222 N/A Continue to explore opportunities to leverage
artificial intelligence for improved service
delivery in ways that are ethical, transparent,
and accountable to the public
Library

10. Narrative change: Added pages detailing the department’s core services, staffing, and organization chart to department summary.

Page number in the
Proposed Budget
Proposed Budget
Text Adopted Budget Text
223 N/A Three sections added:

Core Services
Staffing
Organization Chart

11. Including costs for DTN security system.

Page
number in
the
Proposed
Budget
GL Account and Description Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
223 Expenditure 951-36-51-3606-52246
Building and Facility O&M -
outside
57,500 232,500 175,000

12. Increased fuel charges for patrol at APT, DTN, and LO.

Page
number in
the
Proposed
Budget
GL Account and Description Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
Expenditure 951-36-51-3606-52145
Security patrols
156,400 157,000 600
Expenditure 951-36-51-3602-52145
Security patrols
8,675 9,000 325 223
Expenditure 951-36-51-3610-52145
Security patrols
8,400 9,000 600

35.1.10 FY 2027 Budget

13. New copier with annual maintenance.

Page
number in
the
Proposed
Budget
GL Account and Description Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
223 Expenditure 951-36-51-3614-53109
Copier supplies
0 1,500 1,500

14. Safety shoes needed for Network Administrators.

Page
number in
the
Proposed
Budget
GL Account and Description Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
223 Expenditure 951-36-51-3615-53108
Safety clothing and
equipment
950 1,450 500

15. FSCPL increased support for Library programs.

Page
number in
the
Proposed
Budget
GL Account and Description Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
Revenue 951-36-51-0000-46309
Donations- Friends of the
Library
101,500 109,300 7,800
223
Expenditure 951-36-51-3601-52960
Advertising
40,000 42,300 2,300

16. LSB rent increase.

Page
number in
the
Proposed
Budget
GL Account and Description Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
223 Expenditure 951-36-51-3609-52261
Equipment, building, land,
and rentals
20,900 22,632 2,632

17. Capitola new solar maintenance.

35.1.11 FY 2027 Budget
Page
number in
the
Proposed
Budget
GL Account and Description Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
223 Expenditure 951-36-51-3605-52246
Building and Facility O&M -
outside
17,650 19,150 1,500

18. Increase MFP maintenance contract.

Page
number in
the
Proposed
Budget
GL Account and Description Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
223 Expenditure 951-36-51-3615-52269
Equipment lease- outside
28,000 30,000 2,000

19. Transfer from trust into operating fund.

Page
number in
the
Proposed
Budget
GL Account and Description Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
Revenue 951-00-00-0000-49122
From Library Trust Fund
0 12,000 12,000
223
Expenditure 931-00-00-0000-59109
To Library JPA Fund
0 12,000 12,000
Parks and Recreation

20. Narrative change: Updated FY 2027 goal per Council direction.

Page number in the
Proposed Budget Proposed Budget Text Adopted Budget Text 243 Secure additional Measure
Q, Children’s Fund and SSB
Tax fund allocations for
investment toward highvisibility projects (e.g., open
space management, urban
forestry and youth
programming)
Work with the Children’s Fund and
SSBTOC to explore allocation of funds
towards relevant Parks and
Recreation programs

35.1.12 FY 2027 Budget

21. Defunding project in FY 2027 and deferring project to FY 2028.

Page
number in
the
Proposed
Budget
GL Account and Description
(Project Title)
Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
Revenue 311-00-00-0000-49109
c302702-908-0-0
Transfer from Parks & Rec
Tax Fund
(DeLaveaga Park Ballfield
Lighting and Score Booth
Upgrades)
370,000 0 -370,000
383
Expenditure 311-30-41-9110-57312
c302702-100-2020-0
Park improvements
(DeLaveaga Park Ballfield
Lighting and Score Booth
Upgrades)
370,000 0 -370,000
131 Expenditure 249-00-00-0000-59103
To General Capital
Improvement Fund
1,882,493 1,512,493** -370,000

22. Changing fund source for this project to Northeast Quimby.

Page
number in
the
Proposed
Budget
GL Account and Description
(Project Title)
Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
Revenue 311-00-00-0000-49109
c302608-908-0-0
Transfer from Parks & Rec
Tax Fund
(Lower Delaveaga Park -
General Park Upgrades)
80,000 0 -80,000
392
Revenue 311-00-00-0000-49156
c302608-937-0-0
Transfer from Quimby Act
Funds
(Lower Delaveaga Park -
General Park Upgrades)
0 80,000 80,000
131 Expenditure 249-00-00-0000-59103
To General Capital
Improvement Fund
1,882,493 1,802,493** -80,000

35.1.13 FY 2027 Budget
Page
number in
the
Proposed
Budget
GL Account and Description
(Project Title)
Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
131 Expenditure 243-00-00-0000-59103
To General Capital
Improvement Fund
0 80,000 80,000

23. Defunding project in FY 2027 and deferring to FY 2028.

Page
number in
the
Proposed
Budget
GL Account and Description
(Project Title)
Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
Revenue 311-00-00-0000-49156
c302706-937-0-0
Transfer from Quimby Act
Funds
(Lower Delaveaga Park –
Interior Park Lighting)
80,000 0 -80,000
393
Expenditure 311-30-41-9110-57312
c302706-100-2020-0
Park improvements
(Lower Delaveaga Park –
Interior Park Lighting)
80,000 0 -80,000

24. Reducing project in FY 2027 to resource higher-priority CIP projects.

Page
number in
the
Proposed
Budget
GL Account and Description
(Project Title)
Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
Revenue 311-00-00-0000-49109
c302707-908-0-0
Transfer from Parks & Rec
Tax Fund
(Oceanview Park
Improvements)
30,000 0 -30,000
394
Expenditure 311-30-41-9110-57312
c302707-100-2020-0
Park improvements
(Oceanview Park
Improvements)
136,826 106,826 -30,000

35.1.14 FY 2027 Budget
Page
number in
the
Proposed
Budget
GL Account and Description
(Project Title)
Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
131 Expenditure 249-00-00-0000-59103
To General Capital
Improvement Fund
1,882,493 1,852,493** -30,000

25. Reducing project in FY 2027 to resource higher-priority CIP projects.

Page
number in
the
Proposed
Budget
GL Account and Description
(Project Title)
Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
Revenue 311-00-00-0000-49109
c302709-908-0-0
Transfer from Parks & Rec
Tax Fund
(University Terrace
Basketball Court
Resurfacing)
80,000 60,000 -20,000
399
Expenditure 311-30-41-9110-57312
c302709-100-2020-0
Park improvements
(University Terrace
Basketball Court
Resurfacing)
80,000 60,000 -20,000
131 Expenditure 249-00-00-0000-59103
To General Capital
Improvement Fund
1,882,493 1,862,493** -20,000

26. Increasing project in FY 2027 to help resource additional costs identified.

35.1.15 FY 2027 Budget
Page
number in
the
Proposed
Budget
GL Account and Description
(Project Title)
Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
c302214-100-2020-0
Building remodeling
(Driving Range Roof &
Bldg Improvements)
131 Expenditure 249-00-00-0000-59103
To General Capital
Improvement Fund
1,882,493 1,913,993** 31,500

27. Budgeting expenditure budget for project to match revenues in the proposed budget.

Page
number in
the
Proposed
Budget
GL Account and Description
(Project Title)
Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
387 Expenditure 311-30-41-9110-57312
c302213-100-2020-0
Park improvements
(Driving Range Outdoor
Safety Improvement
0 200,000 200,000
Police

28. A significant budget gap was identified within the FY 2027 budget to cover the projected fleet lease obligation. The department will utilize a portion of its vehicle sinking fund to cover these costs.

Page
number in
the
Proposed
Budget
GL Account and Description Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
Revenue 101-00-00-0000-49180
From General Fund CIP
Reserve Fund
0 205,300 205,300
Expenditure 101-20-21-2102-52268
Vehicle lease- outside
254 70,000 254,122 184,122
Expenditure 101-20-21-2103-52268
Vehicle lease- outside
185,000 206,178 21,178
132 Expenditure 350-00-00-0000-59101
To General Fund
0 205,300 205,300

35.1.16 FY 2027 Budget
Public Works

29. Narrative change: Added FY 2027 goal per Council direction.

Page number in the
Proposed Budget Proposed Budget Text Adopted Budget Text 260 N/A Complete Lighthouse Point Study

30. The commitments for RSTPX were finalized in April 2026. We are shuffling various amounts of State Grants-RSTPX funding between three projects related to West Cliff Drive. This change is for West Cliff Drive Multi-Use Maintenance (m400819). Additionally, the local match for RSTPX funding was not included in the FY 2027 expenses.

Page
number in
the
Proposed
Budget
GL Account and Description
(Project Title)
Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
Revenue 221-40-64-9330-43252
State capital grants- RSTPX
funds
m400819-400-2000-4047
(West Cliff Drive Multi-Use
Maintenance)
309,542 299,543 (9,999)
416
Expenditure 221-40-64-9330-57304
Street systems
m400819-100-2020-0
(West Cliff Drive Multi-Use
Maintenance)
689,542 790,510 100,968

31. The commitments for RSTPX were finalized in April 2026. We are shuffling various amounts of State Grants-RSTPX funding between three projects related to West Cliff Drive. This change is for 800 West Cliff Dr Road Realignment (c402515).

Page
number in
the
Proposed
Budget
GL Account and Description
(Project Title)
Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
423
Revenue 311-40-62-9330-43252
State capital grants- RSTPX
funds
c402515-400-2000-4047
(800 West Cliff Dr Road
Realignment)
223,000 233,000 10,000

35.1.17 FY 2027 Budget
Page
number in
the
Proposed
Budget
GL Account and Description
(Project Title)
Proposed
Budget
Amount
Adopted
Budget
Amount
Change
from
Proposed
Budget
Expenditure 311-40-62-9330-57307
Pedestrian/bike systems
c402515-100-2020-0
(800 West Cliff Dr Road
Realignment)
223,000 233,000 10,000
* Amount provided pertains only to changes occurring on this line; final adopted budget amount is 3,200,000.
** Amount provided pertains only to changes occurring on this line; final adopted budget amount is 1,413,993.

35.1.18 City of Santa Cruz
Transportation and Public Works
Commission
Public Works | Administration
809 Center Street, Room 201
Santa Cruz, CA 95060
Page | 1
May 20, 2026
TO: Mayor Fred Keeley, Vice Mayor Shebreh Kalantari-Johnson (District 3), Councilmember Gabriela Trigueiro (District 1), Councilmember Sonja Brunner (District 2), Councilmember Scott Newsome (District 4), Councilmember Susie O'Hara (District 5), and Councilmember Renee Golder (District 6)
FROM: Ryan Meckel, Transportation and Public Works Commission Chair SUBJECT: Transportation and Public Works Commission Recommendation on the City of Santa Cruz Public Works Department’s FY 2027 Operating Budget and FY 2027-2031 Capital Investment Program
Public Works meets the FY 2027 budget theme of “delivering on our commitments” through its ongoing investment in the Santa Cruz community, its staff, and the systems they serve. The City of Santa Cruz (City) Transportation and Public Works Commission (Commission) expresses strong support for the Public Works Department’s Fiscal Year 2027 Operating Budget and Capital Investment Program (CIP).

These recommendations reflect the Commission’s continued engagement and oversight and align with a shared commitment to effective capital planning, public safety, staff well-being, and reliable delivery of essential services to the community.

Through consistent collaboration, Public Works has remained responsive to input from both the community and the Commission, ensuring priorities are aligned while maintaining high-quality service for residents and visitors. Staff are essential to delivering on these commitments, maintaining the City’s infrastructure, managing a diverse portfolio of projects, overseeing more than 100 public facilities and over 600 assets, and applying the technical expertise and strategic planning necessary to sustain and enhance these critical systems.

At its April 20, 2026 meeting, the Commission unanimously recommended City Council (Council) approve of the proposed FY 2027 budget, commending the Public Works Department’s responsible financial planning and prioritization. The Commission appreciates the opportunity to provide this recommendation and remains committed to partnering with Council and Public Works to advance resilient, innovative, and high-quality service for the community.

If additional General Fund resources become available in FY 2027, the Commission requests that the Council consider allocating funding for additional traffic calming projects. The commission received public comment requesting, additional funds for quick-build roadway safety improvements. The City’s traffic calming pilot program has an adopted toolkit of quick-build safety improvements and a list of over 300 requests ready to be worked on. The requests were prioritized using a Vision Zero framework to identify. The pilot traffic calming project prioritized the requests and implemented three interventions with a budget of $205,000. While over a dozen of CIP projects like Bay Street Corridor Improvements, Downtown Intersection Improvements, and Rail Trail focus on improving safety by reducing severe

35.1.19 Page | 2
injuries and fatalities, general fund to support traffic calming projects on lower volume, local roadways would allow the public works team to continue implementing improvements and achieve Vision Zero in neighborhoods.

Public Works Budget At-a-Glance:
• The FY 2027 operating budget includes 36 activities across 17 funds (General, enterprise, special districts, central and internal service).
• A $48,244 General Fund increase supports rising costs for key contract renewals, including elevator/janitorial services, solar O&M, professional services and software, and the public restroom program.
• A proposed Management Analyst position would expand capacity for department safety, grants and reimbursements, budget and CIP coordination, expense control, and HR liaison support. • The FY 2027–2031 CIP includes 73 active projects managed by 19 project managers, with approximately 60% supported by grant funding.

Exceptional Successes:
• Completed major projects including West Cliff Drive reconstruction, the Traffic Calming Pilot Program, the Active Transportation Plan Update, Pacific Beach Roundabout enhancements, and the Resource Recovery Facility cost-of-service study with new disposal rates implemented. • Initiated key efforts such as the Lighthouse Point Geological Hazard Study, San Lorenzo River and Soquel Pump Station design (Phase 1), and construction of the Wastewater Treatment Facility Headworks project and permanent enclosed flare station. • Expanded operational and community services, including new wharf refuse collection, support for downtown businesses through special requests and cleanup efforts, and certification of seven businesses and the first school in the Green Business Program.

Goals and Challenges (Opportunities) Ahead:
• Advance major capital and infrastructure projects, including completing in-water work on the Murray Street Bridge and County sewer realignment (reopening to one-way traffic), WWTF Headworks construction, Rail Trail Segments 8 and 9 design, and Phase 1 Plan Lines for the Downtown Expansion Plan area.
• Progress critical environmental and resiliency efforts, including West Cliff multi-use path realignment, installation of the permanent enclosed flare station, and initiation of advance design for the Wastewater Energy and Electrical Resiliency (WEER) project. • Implement operational and financial system improvements, including transitioning Fleet, Landfill, and Utility Billing systems (Cityworks and SpryPoint), completing the Resource Recovery 5-year rate study and Prop 218 process, and analyzing Stormwater Fund revenue to support long-term fiscal stability.

Looking ahead to FY 2027, the Public Works Department will manage a significant portfolio of capital projects to maintain public safety and ensure delivery on schedule and within budget, including several with critical grant deadlines that must be met to avoid funding loss and project deferrals. In parallel, the department will advance major system upgrades supporting the Citywide Project NATE initiative, including implementation of a new ERP system, enterprise permitting and licensing software, a utility billing platform, and a CMMS for fleet assets. The department continues to face challenges related to critical vacancies and constrained resources while remaining obligated to deliver existing projects and programs. Amid these demands, there are also opportunities to celebrate, including the Resource Recovery Facility’s centennial in 2026, with planned events and educational outreach throughout the year.

35.1.20 Page | 3
Cc: Matt Huffaker, City Manager
Nathan Nguyen, Public Works Director
Members of the Transportation and Public Works Commission:

Susan Gilchrist, Vice Chair
Ron Goodman
Scott Harriman
Kyle Kelley
Dustin Mulvaney
Carlina Rose

35.1.21 FY 2027-31 Financial Pro Forma
Fiscal Year 2027 2028 2029 2030 2031
Revenue Requirements 70,203,315 77,590,783 85,864,747 91,542,611 99,832,764 Operating Expenses
Personnel 22,224,515 23,390,032 25,027,334 26,779,248 28,653,795 Services, Supplies & Other 21,959,830 22,821,455 23,962,527 25,160,654 26,418,686 Capital Outlay 1,034,000 1,085,700 1,139,985 1,196,984 1,256,833 Other Operating Expenses 1,739,939 1,800,836 1,863,866 1,929,101 1,996,619 Total Operating Expenses 46,958,283 49,098,023 51,993,712 55,065,986 58,325,934 Net Operating Revenues 23,245,032 28,492,760 33,871,035 36,476,625 41,506,830 Capital Expenditures 42,048,740 52,197,098 54,095,328 67,438,123 71,357,435 SRF Funded 13,813,482 17,737,192 17,234,787 4,851,312 9,690,625 WIFIA Funded 21,042,258 21,266,652 21,154,280 25,251,589 24,645,801 Pay-Go Funded 7,192,999 13,193,255 15,706,261 7,917,766 8,358,359 Debt Funded 0 0 0 29,417,456 28,662,650
Debt Service 10,576,801 13,330,083 15,953,351 17,045,441 21,114,777 Net Income 5,475,232 1,969,422 2,211,423 11,513,418 12,033,694 Ending Cash Balances
Fund 717 (Emergency Reserve) 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 Fund 713 (Rate Stabilization) 9,948,508 10,000,000 10,000,000 10,000,000 10,000,000 Fund 716 (90 Day Operating Reserve) 11,578,755 12,106,362 12,820,367 13,577,914 14,381,737 Fund 711 (Water Operations) 11,626,877 13,017,199 14,514,617 25,270,488 36,500,359 Coverage and Targets
Debt Service Coverage (W/Out Reserves) 2.20 2.14 2.12 2.14 1.97 Debt Service Coverage Target 1.50 1.50 1.50 1.50 1.50
Days' Cash on Hand 180 187 192 258 318
Days' Cash Target 180 180 180 180 180
Attachment 4

35.1.22 City of Santa Cruz
Water Commission
212 Locust Street
Santa Cruz, CA 95060
June 1, 2026
Mayor Fred Keeley
Vice Mayor Shebreh Kalantari-Johnson
Councilmember Sonja Brunner
Councilmember Renee Golder
Councilmember Scott Newsome
Councilmember Susie O’Hara
Councilmember Gabriela Trigueiro
Subject: Water Commission Recommendation on the City of Santa Cruz Water Department’s Fiscal Year 2026-2027 Operating Budget and Capital Investment Program Dear Mayor Keeley, Vice Mayor Kalantari-Johnson, Councilmembers Brunner, Golder, Newsome, O’Hara, and Trigueiro:

The City of Santa Cruz Water Commission (Commission) meets monthly in publicly noticed meetings to review and make recommendations to the City Council on matters pertaining to the water system, including but not limited to budgets and financing, capital programming, operational needs, and to the protection of watershed lands and source water. With this background and level of engagement, the Commission is pleased to convey its recommendation in support of the Water Department’s (Department) Fiscal Year (FY) 2027 Operating Budget and Capital Investment Program (CIP).

Our reviews considered the Department’s financial performance against the projections of the 2021 Long-Range Financial Plan (LRFP), which is the key policy document upon which the Department’s annual budget and capital planning are based. The 2021 LRFP was developed with active engagement of the Commission, informed by an ad hoc committee of the Commission to establish the revenue requirements for the current FY 2023-2027 water rates.

The series of documents included as attachments to this letter were presented and discussed in detail during our review process. Based on our analysis, the Commission unanimously recommends the City Council’s approval of the proposed Operating Budget and CIP.

FY 2027 OPERATING BUDGET
The Recommended FY 2027 Operating Budget supports the Department's mission to provide a reliable and high-quality potable water supply 24 hours per day, 7 days a week, and 365 days per year for a population of nearly 100,000 people.

Commented [HL1]: Consider deleting. This seems random
unless its elaborated upon below.

Commented [NK2R2]: Deleted. Agreed that it does not
pertain directly to the budget except to provide background on the pro forma attachment.

35.1.23 Attachment 1 is the Department’s Proposed FY 2027 Operating Budget shows  Projected revenues for FY 2027 of $65.7 million, a 5.3% increase compared to FY 2026 revenues.  Proposed operating expenses for FY 2027 of $57.7 million, a 3.7% increase compared to the adopted FY 2026 Operating Budget. The increase is primarily due to new labor agreements, and rising costs for Service and Supplies. The increase is partially offset by a decrease in debt service due to updated repayment schedules.

The Commission’s recommendation to the City Council on the Department’s FY 2027 Operating Budget is grounded in a collaborative understanding of the water system’s challenges. The Department continues to maintain a responsible and responsive financial approach that supports long-term sustainability.

FY 2027-2031 CAPITAL INVESTMENT PROGRAM BUDGET
The CIP budget request for the five-year period of FY 2027-2031 is $307.4 million. The focus of the CIP is on improving infrastructure resiliency, water supply reliability, and adaptability to climate change.

Attachment 2 is the budget document CIP Summary.

The proposed CIP budget for FY 2027 is $25.4 million in new appropriations. FY 2027 funding will be supplemented by unspent funds carried over from FY 2026, estimated to be $27.7 million, resulting in $53.1 million in funding for 42 active projects.

Major progress was achieved in FY 2026 on several key CIP projects:
 Newell Creek Pipeline (NCP) - Felton/GHWTP: The full NCP is a 9.5-mile pipeline and the Department’s only means of delivering stored water from Loch Lomond to the GHWTP. The pipeline was constructed in the 1960’s and is subject to several vulnerabilities and reliability issues that necessitate its replacement. The NCP will be replaced in three phases, the current phase (Phase 1) started construction to replace and relocate the 4.4-mile-long segment from Felton to GHWTP in February 2025. Construction is 80% complete and is on schedule for substantial completion in February 2027.
 Graham Hill Water Treatment Plant (GHWTP) Concrete Tanks Replacement: This project is replacing three original concrete tanks that were constructed when the now 66-year-old GHWTP was built.

Construction began in early 2021 and as of March 31, 2026, construction is 98% complete and will be substantially complete in June 2026.
 Intertie 1 – Santa Cruz-Scotts Valley Water District (SVWD): Funded in part by a $6.5 million CA Department of Water Resources grant and through a cost-sharing agreement with SVWD, this project is the final link connecting all public water agencies from La Selva Beach to Boulder Creek.

Accomplishments during FY 2026 include substantial completion of grant funded work, continued public outreach, and execution of the cooperative water transfer and purchase agreement between the City and SVWD.
 Water Supply Augmentation: Work continues implementing the recommendations of the Water Supply Advisory Committee, supported by City Council together with approval of the Securing Our Water Future (SOWF) Policy. Notably, the implementation of Aquifer Storage and Recovery (ASR) represents the City’s first new water supply in over five decades, a critical milestone for efforts to diversify and improve the long-term reliability of the water system. The near-term focus is on the Commented [HL3]: Or responsible?
Commented [HL4R4]: Or “responsible and responsive”
Commented [NK5R4]: In my opinion it is both
Commented [HL6]: This should say something like “in new appropriations” to make the next sentence work.

Commented [NK7R7]: Text updated

35.1.24 ongoing evaluation and implementation of ASR in the Mid-County Groundwater Basin (Basin) including construction of upgrades of Beltz Well No. 8 and 12 to ASR wells and design is underway for upgrades at Beltz Well No. 9. In addition, interties with neighboring water agencies are being completed to improve operational flexibility and long-term drought resilience.  GHWTP Facility Improvements Project (FIP): This project will significantly renovate the Department’s only surface water treatment plant, which was originally commissioned in the 1960s. The project includes treatment process upgrades and improvements to the site, infrastructure, and structural components to enhance reliability and to adapt to impacts of climate change on source water quality. As the City’s first project to be delivered via the Progressive-Design-Build (PDB) construction method, staff is currently negotiating the Guaranteed Maximum Price to construct the project to be presented to Council for approval in August. The PDB team delivered 100% designs in FY 2025; staff anticipate construction activity to commence in January 2027.

Other projects completed in FY 2026 include the GHWTP SCADA Radio System Replacement, Beltz 12 Ammonia Removal Improvements Project, and the Union/Locust Building Generator Project. Projects in construction include on-going main replacements and the University Tank No. 4 Replacement Project.

The FY 2027 budget request appropriates additional funds for the ongoing projects described above and will support planning efforts for a new project to replace the Pasatiempo Tanks. The Water Department maintains a CIP project update webpage available on the City’s website at:
https://www.santacruzca.gov/Government/City-Departments/Water-Department/Capital-InvestmentProgram/Projects-in-Your-Neighborhood /.

CIP FUNDING
To minimize the impact on ratepayers, the Department has been aggressive in securing low-interest financing and grants to accomplish the CIP. The Department has had success with securing the following low-interest, long-term financing and grants:

Water Infrastructure Finance and Innovation Act (WIFIA) Loan The loan in the amount of $127.7 million closed on May 4, 2023 and has an interest rate of 3.77%.

Currently, four projects are included in this loan: Planning and design for the Water Supply Augmentation Project, GHWTP FIP, ASR projects, and the University Tank #4 Replacement. To date, $27.1 million has been drawn on this loan.

Drinking Water State Revolving Fund (DWSRF) Loan
The Newell Creek Dam Inlet/Outlet Replacement project, the GHWTP Concrete Tanks project, and NCP – Felton/GHWTP project are being funded through the DWSRF program, with interest rates of 1.4% to

2.3%. To date, $142.8 million has been drawn from these loans. In addition to the existing loans, the GHWTP FIP received preliminary approval for a loan up to $50 million; staff are also pursuing a $25 million DWSRF grant for treatment improvements.

Grant Funding
The Department has over $11 million in active grant funding supporting the following four projects:

Commented [NK8]: Do we need to include this now? I suggest dropping until confirmed
Commented [HL9R9]: Agreed or approve my edits.

35.1.25  The Santa Cruz Mid-County Groundwater Agency (MGA) received a $7.6 million grant, to be split between member agencies, from the CA Department of Water Resources (DWR) as part of the state’s Groundwater Sustainability Plan Implementation Grant program. The Water Department will receive $2.6 million of this grant to support ASR implementation in the Basin.  The DWR also awarded the City and SVWD a grant which included $6.6 million for the intertie project currently under construction.
 The University Tank No. 4 was awarded a Congressional Community Funding grant of $1,000,000 to be applied on construction costs.
 NCP – Felton/GHWTP also received a Congressional Community Funding grant of nearly $960,000 for construction.

In addition to the $25 million DWSRF grant mentioned above, the Department has submitted the following funding requests:
 A FEMA Public Assistance reimbursement of $2.7 million for repair of the 2023 damage to the Felton Diversion Pipeline remains in the queue for funding.  Close-out costs for design of the Brackney section of the NCP through FEMA’s Hazard Mitigation Grant Program.

The Department continues to evaluate opportunities to apply for state funding through Prop 4, approved by voters in November 2024. Staff is actively identifying appropriate projects, reviewing the various competitive grant criterion, and utilizing regional partnerships when appropriate to maximize the City’s competitiveness for these funds.

Line of Credit
To manage the reimbursement timing of the DWSRF and WIFIA loans, the Department maintains a $25 million line of credit. This enables the Department to ensure stable cash flow to pay vendors and meet its other financial obligations during construction.

FINANCIAL PRO FORMA
The Commission commends the Department for the FY 2027-2031 Financial Pro Forma (Attachment 3).

This financial forecasting tool provides a transparent five-year view of revenue requirements, operating and capital requirements, debt service and reserve levels.

For the last five years, the Commission’s budget review has focused heavily on how the Department’s proposed Operating and CIP budgets influence potential customer rate increases and achieve the financial metrics that the City Council set for the Department when it adopted the 2021 LRFP.

The one-page Financial Pro Forma provides a long-range view of operating and capital spending, performance related to key financial metrics such as debt service coverage, reserve levels, and performance on reserve targets and illustrates how assumptions about capital spending and operating costs (including salary, benefits, and pension obligations) will affect revenue requirements over time. Department staff have been transparent in describing the key assumptions driving the financial model, and Commissioners have received detailed and thoughtful answers to questions about various aspects of the results presented in the Financial Pro Forma.

QUARTERLY REPORTING
Commented [HL10]: Or “received”
Commented [MK11R11]: We have not received the total
amount yet
Commented [HL12]: When do we need to pay this? I thought its this year?
Commented [NK13R13]: Agreement is through May 2027.

We can request extension. Will need to develop a plan within the next few months

35.1.26 The Commission receives updates on the Department’s finances through quarterly financial reports.

Attachment 4 is the most recent Quarterly Financial Report for FY 2026.

These reports provide the Commission with an ongoing ability to track progress, and to identify and discuss issues as the year develops. The Commission’s key takeaway from these efforts is that the Department has a well-considered LRFP and strategy – a plan which continues to evolve and improve based on Department staff utilizing this essential analytical and planning tool.

NAVIGATING FINANCIAL UNCERTAINTY
The Department is advancing work on the highest-priority initiatives established by the Water Supply Advisory Committee (WSAC) and SOWF policy. The FIP, Intertie-1, and ASR are all advancing longterm water security and infrastructure reliability for the City.

The Commission wishes to highlight the unique financial environment in which the Department is currently operating – ongoing economy volatility continues to drive fluctuations in construction material and labor costs, and as the Department transitions from planning into active execution of the major projects described herein, these extraordinary financial uncertainties have and are expected to continue to have substantial impacts on financing the capital program. Staff will continue to monitor these challenges, adjust course as needed, and report back to the Commission and Council as appropriate.

CONCLUSION
In closing, the Water Commission unanimously approved a motion in support of the City Council adopting the Water Department’s proposed FY 2027 Operating Budget and CIP at the meeting on May 4, 2026. Our careful review of these proposals shows they have been developed using realistic assumptions that are well aligned with the financial policies and assumptions approved by the Council in its 2021 actions approving the Department’s LRFP.

We appreciate this opportunity to provide our recommendation to the Council and are available to answer any questions you may have.

Sincerely,
Jonathan Lear
Chair, Santa Cruz Water Commission
cc: Matt Huffaker, City Manager
Members of the Santa Cruz Water Commission
Heidi R. Luckenbach, Santa Cruz Water Director
Attachments:

Attachment 1 - Water Department FY 2027 Proposed Operating Budget Commented [MK14]: From Justin: Missing an important
pivot from, though there is financial uncertainty, staff have shovels in the ground and are wrapping up WSAC and SOWF priorities with interties and ASR projects, pg. 3.14. This could make a strong transition into the conclusion

35.1.27 Attachment 2 - Water Department FY 2027-FY 2031 CIP Summary Attachment 3 - Water Department FY 2027-FY 2031 Financial Pro Forma Attachment 4 – Example of Quarterly Financial Report Prepared for and Distributed to the Water Commission

35.1.28 PUBLIC WORKS DEPARTMENT

M E M O R A N D U M
DATE: March 13, 2026
TO: Matt Huffaker, City Manager
FROM: Nathan Nguyen, Public Works Director
SUBJECT: FY 2027 Public Art Calculation, Capital Investment Project Exemption Request As required by Santa Cruz Municipal Code 12.8, the Public Works Department is requesting the City Manager to recommend to City Council the exclusion of several capital improvement projects from the FY 2027 appropriations calculation.

Background
The City of Santa Cruz (City) has established the Public Art Program, as outlined in Santa Cruz Municipal Code (SCMC) 12.80. The program was established to direct works of art in public spaces, provide staff to assist with matters pertaining to public art, engage arts to help beautify the city, and implement the public art master plan (City Council, 1998).

The Public Works Department has nine unique funds where the department’s Capital Investment Program (CIP) projects are budgeted, or funds are transferred from. Public Works contributes to the Citywide CIP – Public Art Fund as well (Fund 313). Separately, Public Works has four dedicated Public Art funds that support the City’s Public Art Program:
• Fund 724: Wastewater – Public Art
• Fund 731: Refuse – Public Art
• Fund 742: Parking – Public Art
• Fund 753: Stormwater – Public Art
Notable Definitions and Funding Parameters
Pursuant to SCMC 12.80.020 Definitions and 12.80.030 Funding:

Definitions:
(a) “Total eligible capital spending” shall mean total capitalized project expenditures, excluding land and vehicle acquisitions and projects funded through gas tax revenue.

Funding:
(a) Annual appropriations for public art shall be calculated by fund as one percent of an average of the most recent three-year total eligible capital spending.

35.1.29 (c) The city manager may recommend that city council exclude a specific capital improvement project, or a portion thereof, from the provisions of this chapter when the total cost of the project exceeds five million dollars and financing and/or construction complexities of the project do not meet the general intent of this chapter. The arts commission will be notified of any such recommendation prior to its presentation to city council.

Allowance for Project-Exclusions
Section 12.80.30(c) established a threshold of $5 million, presumably to maintain a fund balance that can reasonably be spent by the Public Art Program within Proposition 218 principals. As per Section 12.80.030 of the Muni Code, staff is recommending excluding a number of capital projects from the annual appropriations calculation to best manage the fund balances for the Public Works funds and to align with Proposition 218 principals.

Capital projects in the Public Works Department are excluded from the FY 2027 calculations based on the following four categories:
• Projects with existing funding agreements with reimbursement restrictions • Projects planned for future funding agreements that will likely include reimbursement restrictions (in advance of understanding the full funding portfolio the Public Works Department is recommending exempting these projects)
• Projects over $5,000,000
• Projects funded by Gas Tax (Fund 221)
Excluded FY 2027 Capital Projects
Projects over $5,000,000:

Fund Project # Project Title
311 c402519 Murray Street Bridge – Construction Phase
311 c401903 Downtown Intersection Improvements
721 c402611 Interstage Pump 1 Improvements Project
741 c402603 Major Lot Improvements
741 c402609 Parking Structure - Cedar and Cathcart
By excluding the above projects from the FY 2026 Public Art appropriations calculation, the amount to be added to each Public Works Public Art fund balances will be as follows:

Fund Fund Title 1% FY27 Allocation
313 CIP – Public Art (Citywide) $33,480
724 Wastewater – Public Art $9,500
734 Refuse – Public Art $19,700
742 Parking – Public Art N/A
753 Stormwater – Public Art N/A
For FY 2027, the Public Works Department is requesting a continuation of the exclusions from FY 2026, which are listed below:

35.1.30 Excluded FY 2026 Capital Projects
Projects over $5,000,000:

Fund Project # Project Title
311 c401413 MB Sanctuary Scenic Trail (Rail Trail Segment 7) 311 c401804 MB Sanctuary Scenic Trail (Rail Trail Segment 8 & 9) 311 c401501 West Cliff Drive Stabilization
311 c402407 West Cliff Drive Bethany Curve Culvert
311 c601403 SLR Mouth & Lagoon Mgmt Plan
721 c401405 WWTF-Electrical System
721 c401511 Sewer System Improvements
721 c401606 Front-Spruce-Pacific Sewer Main Rehabilitation 721 c402204 City WWTF Headworks Replacement
721 c401706 WWTF Infrastructure and Major Equipment Study 721 m409659 WWTF Equipment Replacement
721 m409668 Neary Lagoon Park Rehab-Maintenance
731 c402512 Resource Recov Facil Enclosed Flare Inst
731 c401909 Landfill Master Plan Development
752 c402112 FEMA Levee Certification
752 c401707 Downtown SLR Drainage System Assessment
Projects funded by Gas Tax:

Fund Project # Project Title
221 All All
311 c401004 Mission Street Hill Utility Underground
Other considerations: projects in over-burdened funds:

Fund Project # Project Title Special Exemption Justification 741 All All The Parking Fund is currently over-extended. 751/752 All All The Stormwater Funds are currently over-extended.

CC:

Kathy Mintz
Ali Robinson
Elizabeth Cabell
Emily Burton
Joseph Balasabas

35.1.31 WATER MEMORANDUM
Date: February 4, 2026
To: Matt Huffaker, City Manager
From: Heidi Luckenbach, Water Director
Re: FY 2027 Public Art Calculation, Water CIP Exemption Request As required by Santa Cruz Municipal Code 12.8, the Water Department (Water) is requesting the City Manager recommend to City Council the continuation of existing Water CIP project exclusions plus one new CIP project from the Public Arts appropriations calculation.

The Water Department has a restricted use Public Art fund, Fund 714, that supports the City’s Public Art Program. This fund is managed within the Water Enterprise Funds to ensure compliance with Proposition 218 which requires use of funds generated from property related fees and charges to be spent on items and work that benefit the rate payers. The FY 2025 yearend fund balance of Fund 714 is nearly $722,000; Fund 714 is currently funding the $201,500 Bethany Curve Culvert Bridge Community Mosaic Project and spent on average $50,137 per year during 2020 -2025.

Notable Definitions and Funding Parameters
Pursuant to SCMC 12.80.020 Definitions and 12.80.030 Funding:

Definitions:
(a) “Total eligible capital spending” shall mean total capitalized project expenditures, excluding land and vehicle acquisitions and projects funded through gas tax revenue.

Funding:
(a) Annual appropriations for public art shall be calculated by fund as one percent of an average of the most recent three-year total eligible capital spending.

35.1.32 (c) The city manager may recommend that city council exclude a specific capital improvement project, or a portion thereof, from the provisions of this chapter when the total cost of the project exceeds five million dollars and financing and/or construction complexities of the project do not meet the general intent of this chapter. The arts commission will be notified of any such recommendation prior to its presentation to city council.

Water CIP Project Exclusions
Section 12.80.30(c) of the SCMC established a project exemption threshold of $5 million, presumably to maintain a fund balance that can reasonably be spent by the Public Art Program within Proposition 218 principals. In FY 2026, the Water Department recommended, and City Council approved, 19 CIP projects over $5 million to be excluded from the calculation. The result was a contribution of $71,325 to Fund 714 and an FY 2026 year-end estimated fund balance of nearly $592,000 prior to interest earned.

For FY 2027 the Water Department is requesting a continuation of the exclusions from FY 2026 and the addition of one new exclusion, the Pasatiempo Tank Replacement project, c702603, which will begin planning and design in FY 2027, and has a total project cost estimate that exceeds $5,000,000.

The contribution for FY2027 to fund 714 will be $40,838. Water will continue to analyze project exemptions on an annual basis and make recommendations based on maintaining a reasonable fund balance while also funding projects in alignment with Proposition 218 principals.

CC:

Suzanne Haberman
Kathy Mintz
Emily Burton
Joseph Balasabas
Elizabeth Cabell

35.1.33 Brittany Inclan
From: Kevin Norton <[email protected]>
Sent: Wednesday, June 3, 2026 9:36 AM
To: Fred Keeley; Gabriela Trigueiro; Renee Golder; Scott Newsome; Shebreh KalantariJohnson; Sonja Brunner; Susie O'Hara; City Council Cc: Matt Huffaker; Nathan Nguyen
Subject: 40 years of change — and what it costs Santa Cruz Attachments: FY2026-27 Proposed General Fund Graph.jpg; budget 1985 General Fund expenditures.png
Dear Mayor, Vice Mayor, and Council Members,
Before you vote on the budget, I want to leave you with one number: $5.6 million.

That's how much Public Works is short compared to its 1985 share of the general fund — in real terms, today's dollars. [See graphs from 1985/86 and 2026/27 below/attached] Over forty years, the department's slice of the budget has quietly shrunk.

35.1.34 Based on the 1985 allocation, Public Works would receive roughly $5.6 million more in next year's budget if it occupied the same share of General Fund expenditures as it did in 1985. [see the general fund chart on p. 72 of the FY 26-27 proposed budget draft]
To fill that gap, the department has turned to grants. That's an understandable response to a real constraint — but it comes with a hidden cost: safety improvements happen on funders' timelines, not residents' needs. We fix sidewalks when the grant comes through, not every time someone trips on broken concrete. We wait for a serious injury before addressing a dangerous intersection — and sometimes we can't act even then. Meanwhile, the department is losing two positions next year(p. 151).

35.1.35 As the city develops a Vision Zero Action Plan and commits to a transportation system that gives residents safer options than driving, I urge you to do more than adopt a plan — restore the local funding capacity to execute it. A department dependent on grant money cannot reliably deliver on core public safety commitments.

Two concrete steps worth taking in this budget cycle: the $500,000 pavement rehabilitation conversion Councilmember Newsome proposed at the last meeting is an important start. There is also an additional $500,000 in the Economic Development Trust Fund that could be directed toward transportation safety without waiting for a grant cycle. Together, that's $1 million — a meaningful down payment on closing the gap.

I’m happy to find healthcare professionals — such as ER surgeons and pediatricians — social justice advocates, clinic managers and others to help explain to the public why safeguarding our streets and sidewalks is such an important shift for us to make.

Thank you for your service to our community; let me know how I may assist you.

Best,
Kevin

35.1.36 Brittany Inclan
From: Christophe Koch <[email protected]>
Sent: Thursday, June 4, 2026 10:06 AM
To: City Council; Fred Keeley; Shebreh Kalantari-Johnson; Gabriela Trigueiro; Renee Golder; Sonja Brunner; Scott Newsome; Susie O'Hara
Subject: Please Allocate $500,000 for Transportation Safety Projects Hello Mayor and Councilmembers,
I live in the West side neighborhood of Santa Cruz on National and Bay street intersection. I bike / ebike everywhere around town and can tell they are so many dangerous section exposed to traffic. Securing lanes for both pedestrians & cyclists is a must, like they do so well in Copenhagen & Amsterdam. This issue matters to me because I experienced 2 bike crash with concussions over my 25 years living here. The first one occured near Steamer lane and the other on Soquel street (hit & run by a car). Santa Cruz has committed to Vision Zero and safer transportation options for people of all ages and abilities. Setting aside funding for quick-build safety projects would allow the City to make meaningful improvements sooner rather than waiting for outside grants. Please support allocating at least $500,000 for transportation safety projects in the coming year.

Thank you so much for your consideration.

Christophe Koch
Christophe Koch / zozo studio / 650 284 6979

35.1.37 Brittany Inclan
From: Emily Burton
Sent: Thursday, June 4, 2026 2:34 PM
To: City Council
Cc: Elizabeth Cabell; Matt Huffaker; Michelle Templeton Subject: FY 2027 Budget Follow-Up Items
Dear Mayor, Vice Mayor, and City Councilmembers,
Thank you for productive FY 2027 Proposed Budget Hearings last week. I have compiled information to answer some the questions brought up during the hearings that were not fully answered at the time.

When we present the FY 2027 Budget for adoption on June 9, 2026, we will provide further details on how the directives provided last week are being implemented. We can provide further information on the answers below during the budget adoption next week, as well.

Question on Investment Strategy
We have not made any changes in our investment strategy in the last three months and will continue to monitor our investments for any impact geopolitical activity may have on the portfolio. Our focus continues to be meeting our short- and long-term cash flow demands in a manner that provides for the safety of principal and sufficient liquidity while providing an investment return. The City's investment portfolio has seen strong returns since the latest amendment to the Investment and Portfolio Council Policy in March 2024.

Question on the Impact of Higher Gas Prices on the City's Financials The General Fund stands to increase sales tax revenues by potentially up to $100k from increased gas prices in FY 2027.

Gas Tax (Fund 221) is a special revenue fund supported by statewide taxes on gasoline sales and vehicle-related fees, with revenues distributed to cities/counties based on factors such as population, road mileage, vehicle registrations, and property values. Under Senate Bill 1 (SB 1), California adjusts the gas tax annually for inflation, resulting in modest yearly increases. These revenues are dedicated to transportation purposes and are distributed primarily through the Highway Users Tax Account (HUTA) and the Road Maintenance and Rehabilitation Account (RMRA) to support local street, road, and transit improvements. For FY 2027, the City is projected to receive approximately $1.86 million in HUTA funding and $1.82 million in RMRA funding, reflecting continued growth over prior years. The City budgets Gas Tax revenues based on the State’s annual revenue estimates. Fuel purchases for City operations are managed through the Fleet Internal Service Fund (Fund 811), with fuel costs charged to departments monthly. Citywide fuel budgets are generally adjusted annually based on CPI, and FY 2027 anticipates an approximate 5% increase in internal fuel costs due to inflationary pressures, market uncertainty, and the anticipated closure of the Benicia refinery, which happened in April 2026.

While gas tax revenues have generally increased over time, rising fuel prices can also reduce revenue growth as motorists adjust travel behavior. At the same time, higher fuel costs contribute to rising construction and material costs for projects. Since FY 2021, national highway construction costs have increased significantly faster than gas tax revenues, creating ongoing pressure on transportation project budgets. Projects currently under construction are not expected to be significantly affected, but projects in design may require additional funding, scope adjustments, or schedule delays if construction costs exceed available funding levels.

35.1.38 The Finance Department will monitor fuel expenditures and sales tax revenues related to gas prices throughout the rest of FY 2026 and the start of FY 2027 to determine if an adjustment to the General Fund revenues and Citywide expenditures is required. If so, the Finance Department will add these adjustments to the budget in the FY 2027 midyear budget adjustment.

I look forward to presenting the budget for adoption to you next week. Please let me know if you have any questions.

Thank you.

Emily
Emily Burton
She/Her
Finance Manager
City of Santa Cruz | Finance Department/Budget Division 1200 Pacific Ave. Suite 290, Santa Cruz, CA 95060
Direct: 831-420-5293
Email: [email protected]
Web: cityofsantacruz.com

35.1.39 1
Julia Wood
From: Alicia Riley <[email protected]>
Sent: Friday, June 5, 2026 2:42 PM
To: Fred Keeley; Shebreh Kalantari-Johnson; Gabriela Trigueiro; Renee Golder; Sonja Brunner; Scott Newsome; Susie O'Hara; City Council
Subject: Please Allocate $500,000 for Transportation Safety Projects Hello Mayor and Councilmembers,
I belong to the upper Westside neighborhood of Santa Cruz.

As you finalize this year's budget, I urge you to dedicate at least $500,000 to transportation safety improvements.

This issue matters to me because I witnessed a UCSC student who crashed on his motor scooter and died at the intersection of Bay and Meder Streets and just two years later, I was hit from behind by a car at that same intersection while driving my 2 year old son home from daycare.

Santa Cruz has committed to Vision Zero and safer transportation options for people of all ages and abilities. Setting aside funding for quick-build safety projects would allow the City to make meaningful improvements sooner rather than waiting for outside grants.

Please support allocating at least $500,000 for transportation safety projects in the coming year.

Thank you for your consideration.

Alicia Riley
Alicia R. Riley, PhD MPH MA
Associate Professor of Sociology & Core Faculty in Global and Community Health Department of Sociology
University of California, Santa Cruz
Pronouns: she/her
Email: [email protected]
UCSC Faculty Profile
I may send emails outside of normal working hours, but please respond according to your schedule.

35.1.40 2
Julia Wood
From: Ariel Zucker <[email protected]>
Sent: Friday, June 5, 2026 3:28 PM
To: City Council; Fred Keeley; Shebreh Kalantari-Johnson; Gabriela Trigueiro; Renee Golder; Sonja Brunner; Scott Newsome; Susie O'Hara
Subject: Re: Please allocate something for sidewalks in this year’s budget Dear Councilmembers and Mayor,
Thank you for considering additional funding for street and sidewalk safety. I hope that the final budget will include a dedicated fund of at least $500,000 per year for sidewalk and street safety.

I really hope that this is the year Santa Cruz starts making steady progress toward becoming a safely walkable, rollable city in the places residents prioritize, rather than just the places that happen to check boxes for state and federal grants.

I also want to express my very strong support for a "sidewalk upon sale" ordinance with a reasonable inlieu fee option as proposed in the Active Transportation Plan. The in-lieu fee could be a flat rate based on the linear feet of missing sidewalks and number of curb rams. This would both increase funding for sidewalks and raise awareness of the fact that it is the property owners' responsibility to install and maintain sidewalks, curbs and gutters - a fact few property owners know.

Best,
Ariel Zucker
709 Almar Ave (District 6)
On Wed, May 20, 2026 at 7:21 AM Ariel Zucker <[email protected]> wrote:

Dear Mayor and Councilmembers,
I moved to Santa Cruz in 2021, and it's been wonderful. I am so happy to have found a wonderful neighborhood on the lower west side, and made friends with so many of my friendly neighbors.

However, one thing that my neighborhood on the LWS really lacks is sidewalks. When I first arrived here, this was salient because as a runner, I had to run in the street to get anywhere. It's nearly impossible to jog on sidewalks throughout the west side, and it's terrifying. Plus, the lack of curb cuts make for a lot of ankle-twisting on-and-offs.

Now as a parent, it's even more salient. My daughter's school is two blocks away. But there is no continuous sidewalk to her school. Garfield Park is about 100 meters away. But there is no continuous sidewalk to the park. The beach is about 500 meters away. But there is no sidewalk to the beach, and the lack of curb cuts means that even if there were, with a stroller, I can't even use them. Plus, neighbors are allowed to build fences and maintain gardens in the public right-of-way (e.g. 112 Sunset) with impunity.

35.1.41 3
It's also salient because I recently (voluntarily) redid the sidewalk in front of my home to be wider and include a parking strip. I constantly hear from people walking by how grateful they are. Elderly neighbors, random people with kids on bikes, people with strollers, joggers, you name it! Even our neighbor in a wheelchair, who has to roll into the street as soon as he passes our house and the sidewalk ends, thanks us every single time he passes, saying "I love your sidewalk!!!" Yet then I watch him roll into the street and dodge the oncoming traffic.

This pattern is repeated across the city. The scale of the problem is large.

I believe we have to start improving access to sidewalks systematically in this city. I am so grateful for the improvements to Escalona, which have really improved my running route, but one-off grant funding is not enough. We need sustained attention and investment in safe walking, running, and rolling.

Please invest some of the General Fund into quick-build sidewalks. This could include some funding for enforcing homeowners to keep their right-of-way clear of fences and shrubs (like 112 Sunset and 358 Plateau in my regular walk), matching grants for property owners to replace their sidewalks, or a commitment to connecting key city landmarks with complete sidewalks.

Thank you,
Ariel Zucker
709 Almar
________________________________________________________________ Ariel Zucker
arielzucker.net
Pronouns: she, her, hers
+1 510 332 3059

35.1.42 Brittany Inclan
From: Lina Arcila <[email protected]>
Sent: Friday, June 5, 2026 8:44 PM
To: Fred Keeley; Shebreh Kalantari-Johnson; Gabriela Trigueiro; Renee Golder; Sonja Brunner; Scott Newsome; Susie O'Hara; City Council
Subject: Please Allocate $500,000 for Transportation Safety Projects Hello Mayor and Councilmembers,
I live in the Carbonera neighborhood of Santa Cruz.

As you finalize this year's budget, I urge you to dedicate at least $500,000 to transportation safety improvements.

This issue matters to me because I live at the intersection of Isbel and Bartlett Way. We have 2 young kids (under 5 yo) and an active but anxious dog. To go to the nearest park or walk our dog along side a stroller, we have to go through a curve with little visibility and no sidewalk. We have had several close calls with cars and motorcycles.

We do our best to keep our dog from lounging but with cars coming too close to the shoulder and no sidewalk, it’s hard to keep our dog from getting scared. We could potentially walk to the elementary school but feel concerned to do so given the lack of sidewalk and high potential for a pedestrian accident.

Santa Cruz has committed to Vision Zero and safer transportation options for people of all ages and abilities.

Setting aside funding for quick-build safety projects would allow the City to make meaningful improvements sooner rather than waiting for outside grants.

Please support allocating at least $500,000 for transportation safety projects in the coming year.

Thank you for your consideration.

Lina
Sent from my iPhone

35.1.43 Brittany Inclan
From: Jen Schiffner <[email protected]>
Sent: Friday, June 5, 2026 8:54 PM
To: Fred Keeley; Shebreh Kalantari-Johnson; Gabriela Trigueiro; Renee Golder; Sonja Brunner; Scott Newsome; Susie O'Hara; City Council
Subject: Please Allocate $500,000 for Transportation Safety Projects Hello Mayor and Councilmembers,
I live in the Carbonera neighborhood of Santa Cruz.

As you finalize this year's budget, I urge you to dedicate at least $500,000 to transportation safety improvements.

This issue matters to me because I have two small children (ages 5 and 7), and we don’t feel safe walking or riding bikes out of our neighborhood. While we live close to downtown and our great rail trail, we feel fundamentally cut off because there’s no sidewalk connecting part of Isbel to Market Street, right near a blind curve. With many young families in our neighborhood, the lack of sidewalk is very impactful and prevents biking and walking for many neighbors.

Please support allocating at least $500,000 for transportation safety projects in the coming year.

Thank you for your consideration.

Jennifer Schiffner

35.1.44 Brittany Inclan
From: Sarah Heras <[email protected]>
Sent: Saturday, June 6, 2026 6:12 AM
To: Fred Keeley; Shebreh Kalantari-Johnson; Gabriela Trigueiro; Renee Golder; Sonja Brunner; Scott Newsome; Susie O'Hara; City Council
Subject: Please Allocate $500,000 for Transportation Safety Projects Hello Mayor and Councilmembers,
I live in the Cabonera neighborhood of Santa Cruz.

As you finalize this year's budget, I urge you to dedicate at least $500,000 to transportation safety improvements.

This issue matters to me because my child bikes to school daily on Isbel between Bartlett Way and Market St and the cars come very fast and there are blind corners. Is love to have safe sidewalks for me and my family to walk and bike to town safely. Right now it feels very unsafe.

Please support allocating at least $500,000 for transportation safety projects in the coming year.

Thank you for your consideration.

Sarah Heras

35.1.45 Brittany Inclan
From: Matt Gee <[email protected]>
Sent: Saturday, June 6, 2026 6:26 AM
To: Fred Keeley; Shebreh Kalantari-Johnson; Gabriela Trigueiro; Renee Golder; Sonja Brunner; Scott Newsome; Susie O'Hara; City Council
Subject: Please Allocate $500,000 for Transportation Safety Projects Hello Mayor and Council members,
I live in the Carbonera neighborhood of Santa Cruz.

As you finalize this year's budget, I urge you to dedicate at least $500,000 to transportation safety improvements.

This issue matters to me because the sidewalk abruptly stops on Isbel Dr at the bottom of the hill, where cars come speeding down. There is an S-curve between the bottom of the hill and the Branciforte Creek bridge (on Isbel). This is a highly trafficked walking/ biking route for kids, families, and neighbors. I’ve witnessed several near misses as cars speed through the S-Curve. Putting in a sidewalk in front of 230 and 240 Isbel Dr would drastically improve the safety of our community.

Santa Cruz has committed to Vision Zero and safer transportation options for people of all ages and abilities.

Setting aside funding for quick-build safety projects would allow the City to make meaningful improvements sooner rather than waiting for outside grants.

Please support allocating at least $500,000 for transportation safety projects in the coming year.

Thank you for your consideration.

Matt Gee

35.1.46 Brittany Inclan
From: Merritt Gee <[email protected]>
Sent: Saturday, June 6, 2026 7:59 AM
To: Fred Keeley; Shebreh Kalantari-Johnson; Gabriela Trigueiro; Renee Golder; Sonja Brunner; Scott Newsome; Susie O'Hara; City Council
Subject: Please Allocate $500,000 for Transportation Safety Projects Hello Mayor and Council members,
I live in the carbonera neighborhood of Santa Cruz.

As you finalize this year's budget, I urge you to dedicate at least $500,000 to transportation safety improvements.

This issue matters to me because I live at 235 Isbel Drive, on the lower part of Isbel. The sidewalk discontinues across from Bartlett Street and then picks up again just before the bridge. This is incredibly unsafe. The carbonara neighborhood has evolved over the last five years and we have a large population of young families with children that bike and walk to school. This is a very positive change, however, the road needs to be made safe for traveling by bike or foot. Due to the traffic coming off of Highway 17 and coming down Isbel, cars go insanely fast and even are quite reckless coming around the curve. Without the safety of a sidewalk, families are in danger. I also believe it is critical to put a speed bump in after the hill coming down Isbel to slow traffic through this part of the road. For our neighborhood, Isbel is the only through road to get to the rest of town, so we need a safe way to commute that direction. The lack of continued sidewalks has been a major concern for the neighborhood for a long time.

With the large lots, there is plenty of space to create wide sidewalks for all to safely commute.

Santa Cruz has committed to Vision Zero and safer transportation options for people of all ages and abilities.

Setting aside funding for quick-build safety projects would allow the City to make meaningful improvements sooner rather than waiting for outside grants.

Please support allocating at least $500,000 for transportation safety projects in the coming year.

Thank you for your consideration.

Merritt, Matt, Marlee (6), Mackenzie (3.5), Maeven (1.5) Merritt Gee
408-838-4767

35.1.47 Brittany Inclan
From: Anna Marie Costa <[email protected]>
Sent: Saturday, June 6, 2026 8:47 AM
To: Fred Keeley; Shebreh Kalantari-Johnson; Gabriela Trigueiro; Renee Golder; Sonja Brunner; Scott Newsome; Susie O'Hara; City Council
Subject: Please Allocate $500,000 for Transportation Safety Projects Hello Mayor and Councilmembers,
I live in the Carbonera neighborhood of Santa Cruz.

As you finalize this year's budget, I urge you to dedicate at least $500,000 to transportation safety improvements.

This issue matters to me because I have small children who use strollers and will learn to ride bikes near the bottom of Isbel. There are no sidewalks and people go down the hill very quickly.

Please support allocating at least $500,000 for transportation safety projects in the coming year.

Thank you for your consideration.

Anna Marie Costa

35.1.48 Brittany Inclan
From: Kelly Champagne <[email protected]>
Sent: Saturday, June 6, 2026 9:06 AM
To: Fred Keeley; Shebreh Kalantari-Johnson; Gabriela Trigueiro; Renee Golder; Sonja Brunner; Scott Newsome; Susie O'Hara; City Council
Subject: Please Allocate $500,000 for Transportation Safety Projects Hello Mayor and Council members,
I live in the Carbonera neighborhood of Santa Cruz.

As you finalize this year's budget, I urge you to dedicate at least $500,000 to transportation safety improvements.

This issue matters to me because Isbel drive is a well known “shortcut” to get around traffic on the 17. Cars drive very fast down the hill and there are no speed bumps to slow them down. Young people literally come here to race at night. The sidewalk also stops at the bottom of Isbel right at the curved area which is incredibly dangerous for all the families with young children who’ve moved here.

Santa Cruz has committed to Vision Zero and safer transportation options for people of all ages and abilities.

Setting aside funding for quick-build safety projects would allow the City to make meaningful improvements sooner rather than waiting for outside grants.

Please support allocating at least $500,000 for transportation safety projects in the coming year.

Thank you for your consideration.

Kelly Champagne
Eric Graff
338 Isbel Drive
Thanks,
Kelly

35.1.49 Brittany Inclan
From: Alison Satake <[email protected]>
Sent: Saturday, June 6, 2026 9:20 AM
To: Fred Keeley; Shebreh Kalantari-Johnson; Gabriela Trigueiro; Renee Golder; Sonja Brunner; Scott Newsome; Susie O'Hara; City Council
Subject: Please Allocate $500,000 for Transportation Safety Projects Hello Mayor and Councilmembers,
I live in the Carbonera neighborhood of Santa Cruz.

As you finalize this year's budget, I urge you to dedicate at least $500,000 to transportation safety improvements.

This issue matters to me because my kids and our neighbors at the top of Carbonera x Isbel and at the bottom of Isbel need the sidewalks to be completed to prevent near-misses and car crashes with pedestrians and bicyclists.

Drivers speed through our neighborhood so a speed bump at the base of Isbel would make this street safer.

Santa Cruz has committed to Vision Zero and safer transportation options for people of all ages and abilities.

Setting aside funding for quick-build safety projects would allow the City to make meaningful improvements sooner rather than waiting for outside grants.

Please support allocating at least $500,000 for transportation safety projects in the coming year.

Thank you for your consideration.

Alison Satake
238 Carbonera Drive
510-816-8161

35.1.50 Brittany Inclan
From: Jo Polito <[email protected]>
Sent: Saturday, June 6, 2026 9:36 AM
To: Fred Keeley; Shebreh Kalantari-Johnson; Gabriela Trigueiro; Renee Golder; Sonja Brunner; Scott Newsome; Susie O'Hara; City Council
Subject: Please Allocate $500,000 for Transportation Safety Projects Hello Mayor and Councilmembers,
I live in the Carbonera neighborhood
This issue matters to me because my kids and our neighbors at the top of Carbonera x Isbel and at the bottom of Isbel need the sidewalks to be completed to prevent near-misses and car crashes with pedestrians and bicyclists. Drivers speed through our neighborhood so a speed bump at the base of Isbel would make this street safer.

As you finalize this year's budget, I urge you to dedicate at least $500,000 to transportation safety improvements.

Please support allocating at least $500,000 for transportation safety projects in the coming year.

Thank you for your consideration.

Joanne Polito
238 Carbonera Dr, Santa Cruz, CA 95060
330-730-9016

35.1.51 Brittany Inclan
From: Thomas Burrow <[email protected]>
Sent: Saturday, June 6, 2026 9:41 AM
To: Fred Keeley; Shebreh Kalantari-Johnson; Gabriela Trigueiro; Renee Golder; Sonja Brunner; Scott Newsome; Susie O'Hara; City Council
Subject: Please Allocate $500,000 for Transportation Safety Projects Hello Mayor and Councilmembers,
I live in the Carbonera neighborhood of Santa Cruz.

As you finalize this year’s budget, I urge you to dedicate at least $500,000 to transportation safety improvements.

This issue matters to me because I live on Isbel Drive, where vehicles regularly travel well above the posted speed limit as they descend the hill through our neighborhood. My family has two young children, and we are deeply concerned about their safety, as well as the safety of other children, pedestrians, cyclists, and residents who use the street every day.

We frequently witness drivers speeding down the hill, creating dangerous conditions and increasing the risk of a serious collision. The situation is made even more concerning by a blind curve on Isbel Drive that limits visibility for both drivers and pedestrians. When excessive speed is combined with reduced sightlines, it leaves very little time for drivers to react to someone crossing the street, walking along the roadway, riding a bicycle, or pulling out of a driveway.

Even simple activities such as walking, biking, or crossing the street require constant vigilance because of the speed of passing traffic. While we have fortunately not experienced a tragedy, the current conditions make it feel like a matter of when—not if— a serious accident occurs.

Traffic-calming measures such as speed bumps or other quick-build safety improvements on Isbel Drive would help slow vehicle speeds and make the street safer for everyone.

These relatively modest investments can have an immediate impact on reducing risk and improving quality of life for neighborhood residents.

35.1.52 Santa Cruz has committed to Vision Zero and safer transportation options for people of all ages and abilities. Setting aside funding for quick-build safety projects would allow the City to make meaningful improvements sooner rather than waiting for outside grants.

Please support allocating at least $500,000 for transportation safety projects in the coming year.

Thank you for your consideration.

Thomas Burrow
309 Isbel Dr
Santa Cruz

35.1.53 Brittany Inclan
From: Eva N <[email protected]>
Sent: Saturday, June 6, 2026 11:18 AM
To: Fred Keeley; Shebreh Kalantari-Johnson; Gabriela Trigueiro; Renee Golder; Sonja Brunner; Scott Newsome; Susie O'Hara; City Council
Subject: Please Allocate $500,000 for Transportation Safety Projects Hello Mayor and Councilmembers,
I live in the Carbonara neighborhood of Santa Cruz.

As you finalize this year's budget, I urge you to dedicate at least $500,000 to transportation safety improvements.

This issue matters to me because my kids and I ride our bikes to Delaveaga Elementary school everyday.

Isbel Dr. And Goss Ave. are very narrow and have no bike lane.

Please support allocating at least $500,000 for transportation safety projects in the coming year.

Thank you for your consideration.

Eva Nagel

35.1.54 Brittany Inclan
From: Tyler Andros <[email protected]>
Sent: Saturday, June 6, 2026 11:45 AM
To: City Council; Fred Keeley; Shebreh Kalantari-Johnson; Gabriela Trigueiro; Renee Golder; Sonja Brunner; Scott Newsome; Susie O'Hara
Subject: Please Allocate $500,000 for Transportation Safety Projects Hello Mayor and Councilmembers,
I live at Porter College at UCSC.

As you finalize this year's budget, I urge you to dedicate at least $500,000 to transportation safety improvements.

This issue matters to me because the bus system is vital to reducing car dependency on campus, an issue that affects not just students, but employees getting to work here as well.

Please support allocating at least $500,000 for transportation safety projects in the coming year.

Thank you for your consideration.

Tyler Andros

35.1.55 Brittany Inclan
From: Yael Kisel <[email protected]>
Sent: Saturday, June 6, 2026 12:55 PM
To: Fred Keeley; Shebreh Kalantari-Johnson; Gabriela Trigueiro; Renee Golder; Sonja Brunner; Scott Newsome; Susie O'Hara; City Council
Subject: Please Allocate $500,000 for Transportation Safety Projects Dear Mayor and Councilmembers,
I live in the Carbonera neighborhood of Santa Cruz. As you finalize this year's budget, I urge you to dedicate at least $500,000 to transportation safety improvements. This issue matters to me because I want to switch to walking and biking around town more instead of driving, especially with my little kids.

Thank you for your consideration,
Yael Kisel

35.1.56 Brittany Inclan
From: Sara McLellan <[email protected]>
Sent: Saturday, June 6, 2026 6:34 PM
To: Fred Keeley; Shebreh Kalantari-Johnson; Gabriela Trigueiro; Renee Golder; Sonja Brunner; Scott Newsome; Susie O'Hara; City Council
Subject: Please Allocate $500,000 for Transportation Safety Projects Hello Mayor and Councilmembers,
We live in the lower Westside neighborhood of Santa Cruz.

As you finalize this year's budget, I urge you to dedicate at least $500,000 to transportation safety improvements.

This issue matters to me because it is important that we can all ride our bikes safely to school, work, and wherever we go. This is how we can reduce carbon emissions from transportation and help the environment.

Please support allocating at least $500,000 for transportation safety projects in the coming year.

Thank you for your consideration.

Sara McLellan & family

35.1.57 Brittany Inclan
From: Luisa Bird-Robinson <[email protected]> Sent: Saturday, June 6, 2026 8:20 PM
To: Fred Keeley; Shebreh Kalantari-Johnson; Gabriela Trigueiro; Renee Golder; Sonja Brunner; Scott Newsome; Susie O'Hara; City Council
Subject: Please Allocate $500,000 for Transportation Safety Projects Hello Mayor and Councilmembers,
I live in the Carbonera Estates neighborhood of Santa Cruz.

As you finalize this year's budget, I urge you to dedicate at least $500,000 to transportation safety improvements.

This issue matters to me because vehicles speed up and down the steep hill of my street, Isbel Drive.

This neighborhood street has become a “shortcut” for commuters using Hwy 17. This speeding is a constant and real safety threat. As an elder sharing this property with grandchildren, simply walking along and/or crossing Isbel Drive is most hazardous. We need at least one speed bump installed on Isbel Drive between Monte Street and Bartlett Way.

Please support allocating at least $500,000 for transportation safety projects in the coming year.

Thank you for your consideration.

Luisa Bird-Robinson
To help protect your privacy, Microsoft Office prevented automatic download of this picture from the Internet.

Luisa Bird-Robinson
Certified Integral Yoga Teacher, RYT 200
[email protected]

35.1.58 Brittany Inclan
From: Dawn Barker <[email protected]>
Sent: Sunday, June 7, 2026 11:41 PM
To: Fred Keeley; Shebreh Kalantari-Johnson; Gabriela Trigueiro; Renee Golder; Sonja Brunner; Scott Newsome; Susie O'Hara; City Council
Cc: [email protected]
Subject: Please Allocate $500,000 for Transportation Safety Projects Hello Mayor and Councilmembers,
I live in the Carbonera neighborhood of Santa Cruz.

As you finalize this year's budget, I urge you to dedicate at least $500,000 to transportation safety improvements.

This issue matters to me because drivers fly down our street all the time and my young son and I enjoy biking to his school (Delaveaga) and into town, as well as going for neighborhood walks. There is a section towards the bottom of Isbel Drive that seriously needs both a speed bump put in as well as a sidewalk installed. It is dangerous to walk that section, especially for children on their way to school.

Santa Cruz has committed to Vision Zero and safer transportation options for people of all ages and abilities.

Setting aside funding for quick-build safety projects would allow the City to make meaningful improvements sooner rather than waiting for outside grants.

Please support allocating at least $500,000 for transportation safety projects in the coming year.

Thank you for your consideration.

Kindly,
Dawn Byrum

35.1.59 FY 2027 ADOPTED BUDGET PRESENTATION | CITY OF SANTA CRUZ FY 2027 Adopted Budget- Updates on Council direction received during Proposed Budget Hearings
- Overview of Changes from Proposed
Budget
- Overview of Changes to the Personnel
Complement and Classification and Compensation Plans
- Council Recommendation

35.1.60 Updates on Direction
Received
FY 2027 ADOPTED BUDGET PRESENTATION | CITY OF SANTA CRUZ Direct staff to return to Council in September 2026 with a staffing plan and funding options for the establishment of the Office of Well-Being, including any recommended budget adjustments for FY 2027 – PLANNED AND IN PROGRESSDirect staff to ensure departmental performance measures align with the Strategic Plan, Council directive, and soonto-be developed Community Indicators Dashboard to be reflected in each department's budget section beginning with the FY 2028 Budget packet – PLANNED

35.1.61 Updates on Direction
Received
FY 2027 ADOPTED BUDGET PRESENTATION | CITY OF SANTA CRUZ Direct staff to amend the Parks and Recreation FY 2027 Goal to remove the word "secure" in reference to Children's Fund and Sugar-Sweetened Beverage Tax funds and replace it with, “Work with the Children's Fund Oversight Committee and the SugarSweetened Beverage Tax Oversight Committee to explore the allocation of funds towards relevant Parks and Recreation programs. – CHANGED IN ADOPTED BUDGET

35.1.62 Updates on Direction
Received
FY 2027 ADOPTED BUDGET PRESENTATION | CITY OF SANTA CRUZ Direct the City Manager and the Director of Public Works to return to Council in August 2026 with options to address safety issues at the crosswalk of Mission Street and Green Stree, including a flashing light crosswalk beacon, and engage with the neighbors near the intersection of Myrtle Street and Taylor Street to assess the want for speed bumps – PLANNED AND IN PROGRESSExplore prioritizing the reinstated transfer from the GeneralFund to the Streets CIP Fund (Fund 317) for transportationsafety projects – IN PROGRESS

35.1.63 Updates on Direction
Received
FY 2027 ADOPTED BUDGET PRESENTATION | CITY OF SANTA CRUZ Direct the City Manager’s Office and CommunityDevelopment Department to provide Council with an analysison any fee reductions or waivers available (without creatingdirect expenses) for the Homeless Garden Project beforebudget adoption. – PROVIDED AS AN FYI TO COUNCIL

35.1.64 Updates on Council
Requests
FY 2027 ADOPTED BUDGET PRESENTATION | CITY OF SANTA CRUZ Provide an update on investment portfolio – SENT IN PUBLICCOMMUNICATION TO COUNCIL MEMBERSProvide an update on revenue projections from an increase ingas prices – SENT IN PUBLIC COMMUNICATION TOCOUNCIL MEMBERSInclude a goal to Complete Lighthouse Point Study in FY2027 – ADDED TO PUBLIC WORKS DEPARTMENT GOALS INADOPTED BUDGETInclude a goal to stand up the Office of Well-Being with twonear-term actions: (1) Neighborhood Activation MicrograntProgram and (2) Community Indicators Dashboard – ADDED TO CITY MANAGER’S OFFICE GOALS IN ADOPTED BUDGET

35.1.65 Proposed Budget
FY 2027 ADOPTED BUDGET PRESENTATION | CITY OF SANTA CRUZ $173.4 M
$480.3 M
$169.8 M
All Funds:includesCapital and OperatingBudgets
Enterprise Funds:includes Capital and Operating Budgets General Fund Operating Budget

35.1.66 Adopted Budget
FY 2027 ADOPTED BUDGET PRESENTATION | CITY OF SANTA CRUZ $173.4 M
$494.9 M
$170.0 M
All Funds:includesCapital and OperatingBudgets
Enterprise Funds:includes Capital and Operating Budgets General Fund Operating Budget

35.1.67 Changes from Proposed Budget
FY 2027 ADOPTED BUDGET PRESENTATION | CITY OF SANTA CRUZ $173.4 M
$494.9 M
$170.0 M
$173.4 M
$480.3 M
$169.8 M
$14M of transfers out to CIP projects
$205k for Police vehicle leases offset by revenues from sinking fund $186k of updates by Library JPA to SCPL budget
General Fund Operating Budget
Enterprise Funds
All Funds

35.1.68 Updates to Personnel Complement and
Classification and Compensation Plans
FY 2027 ADOPTED BUDGET PRESENTATION | CITY OF SANTA CRUZ Department Position
Homelessness Response Specialist I/II
City Manager’s OfficeFinance Management AnalystHuman Resources Assistant DirectorOffice of ED Property ManagerParks & Recreation Custodian (0.5 FTE)Parks & Recreation Recreation Specialist (0.5 FTE)Water Water Treatment Supervisor Position Additions Position Deletions
Department PositionHuman Resources Human Resources ManagerParks & Recreation LNCC Administrative Assistant IIPolice Property and Evidence SpecialistPolice Police Records TechnicianPublic Works Administrative Assistant IIWater Environmental Program Analyst I/II

35.1.69 Updates to Personnel
Complement and Classification and Compensation Plans
FY 2027 ADOPTED BUDGET PRESENTATION | CITY OF SANTA CRUZ Position Update MadeAccounting Supervisor Title changeAdministrative Supervisor Title changeGIS Analyst Title changeRecreation Specialist Salary change

35.1.70 FY 2027 ADOPTED BUDGET PRESENTATION | CITY OF SANTA CRUZ Recommendation
Adopt the Fiscal Year (FY) 2027 Budget, including the Capital Investment Program (CIP), effective July 1, 2026; authorize the City Manager to allocate within the applicable funds the FY 2027 Changes to the Proposed Budget to the appropriate accounting classification; and approve related and applicable transfers in/out between funds; and authorize the Finance Director to create additional appropriations to provide for commitments carried over from the prior fiscal year, including contract and purchase order encumbrances and unexpended project balances, so long as there is a sufficient fund balance to finance these commitments; Approve the CIP project exclusions from the Public Art transfer calculation for FY 2027;Accept the Water Commission’s recommendations regarding the Water Department’s FY 2027 Operating and Capital Investment Program (CIP); andAdopt a resolution amending the City of Santa Cruz Personnel Complement and Classification Plans for City Manager’s Office, Finance, Human Resources, Information Technology, Office of Economic Development, Parks and Recreation, Police, Public Works, and Water Department

35.1.71 City Council

AGENDA REPORT
DATE: 05/26/2026
AGENDA OF: 06/09/2026
DEPARTMENT: Human Resources
SUBJECT: Resolution Amending the City of Santa Cruz Personnel Complement and Classification and Compensation Plans for Various Departments (HR) LOCATION: Citywide
RECOMMENDATION: Motion to adopt a resolution amending the City of Santa Cruz Personnel Complement and Classification and Compensation Plans for - City Manager’s Office, Finance, Human Resources, Information Technology, Economic Development, Parks and Recreation, Police, Public Works, and Water.

Any funding approved by the Council will not be implemented until the required meet and confer process is completed in accordance with City obligations under the Meyer-Milias Brown Act and before any contract returns to City Council in open session.

BACKGROUND: Amendments related to City classifications are a standard part of the City’s annual budget process. City departments with staffing and position recommendations that change the number of authorized full-time equivalent (FTE) positions in the City’s position listing must be approved by City Council.

DISCUSSION: Departments have determined, through careful analysis and with the assistance of the Human Resources Department that the recommendations listed on the attached “Personnel Profile” will improve their operational functioning. Each deletion and addition include varying personnel cost allocations to the General Fund, Enterprise, and other funds which are identified in the attached HR Resolution. A description of these position changes is reflected in the attached document “Personnel Profile” that is found in the FY 2027 Annual Budget document.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: Not applicable.

HEALTH IN ALL POLICIES (HiAP): The proposed classification and staffing amendments support the City’s commitment to Health in All Policies by enhancing public health, sustainability, and equity. Operational improvements enabled by these changes ensure departments are adequately staffed to deliver safe and effective services, promoting healthier work environments and community outcomes. The realignment of positions and funding supports long-term organizational sustainability and responsible fiscal stewardship.

35.2.1 FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: Yes

2. This recommendation requires a budget adjustment: No

3. The recommendation creates an on-going expenditure commitment: Yes FISCAL IMPACT DESCRIPTION: The fiscal impact of this report is incorporated into the FY 2027 budget and impacts both the General Fund and various Enterprise Funds. Many of the proposed additions are offset by deletions of vacant positions that, after thorough operational review, were determined to no longer meet current service demands.

Prepared and Submitted By:

Sara De Leon
Human Resources Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

2. PERSONNEL PROFILE – OVERVIEW OF CHANGES.PDF

35.2.2 RESOLUTION NO. NS-XX,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ

AMENDING THE PERSONNEL COMPLEMENT AND CLASSIFICATION AND COMPENSATION PLANS AND THE FY 2027 BUDGET – CITY MANAGER’S OFFICE,

FINANCE, HUMAN RESOURCES, INFORMATION TECHNOLOGY, OFFICE OF

ECONOMIC DEVELOPMENT, PARKS AND RECREATION, POLICE, PUBLIC WORKS,

AND WATER DEPARTMENT
WHEREAS, staff has recommended certain modifications to the Classification and Compensation Plans.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz that the City amends the Classification and Compensation Plans as follows:

Department Activity Classification No. and Title Salary (New Classifications and
Changes)
CITY
MANAGER’S
OFFICE
Add Position:
840/841
6105 Limited Term Appointment
Homelessness Response Specialist I/II
(1.0 FTE)

FINANCE
Add Position:
702
1241 Management Analyst (1.0 FTE)
HUMAN

RESOURCES
Add Position:
856 - New
1230 Assistant Director of Human
Resources (1.0 FTE)
$12,717 - $16,392
per month
Delete Positions:
855-002
1230 Human Resources Manager (1.0 FTE)

INFORMATION

TECHNOLOGY
Title Change Only
857
GIS Analyst GIS Analyst III

35.2.3 RESOLUTION NO. NS-XX,XXX
Department Activity Classification No. and Title Salary (New Classifications and
Changes)

ECONOMIC

DEVELOPMENT
Add Position:
770
5401 Property Manager (1.0 FTE)

PARKS AND

RECREATION
Salary Change Only
197
Recreation Specialist From: $4,472 -
$6,222 per month
To: $4,863-$6,841
per month
Add Position:
133
3212 Custodian (0.50 FTE)
Add Position:
197
3212 Recreation Specialist (0.50 FTE)
Delete Position:
106-014
3212 LNCC Administrative Assistant II (1.0
FTE)
POLICE
Delete Position:
175-004
2102 Police Property and Evidence
Specialist (1.0 FTE)
Delete Position:
176-002
2107 Police Records Technician (1.0 FTE)

PUBLIC WORKS
Delete Position:
106-028
4101 Administrative Assistant II (1.0 FTE)
WATER
Add Position:

New
7106 Water Treatment Supervisor (1.0 FTE) $8,457-$11,900 per month
Delete Position:
136-015
7104 Environmental Program Analyst I/II
(1.0 FTE)

OTHER CHANGES
Title Change Only
344
Accounting Services Supervisor Accounting
Supervisor
Title Change Only
316
Administrative Service Supervisor Administrative
Supervisor

35.2.4 RESOLUTION NO. NS-XX,XXX
PASSED AND ADOPTED this 9th day of June, 2026 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator

35.2.5 FY 2027 Budget
Personnel Profile – Overview of Changes
The following Personnel Listing changes and compensation and classification system changes for Fiscal Year 2027. Citywide, this will result in a net decrease in full-time equivalent (FTE) positions of 3.50.

City Manager’s Office
The City Manager’s Office proposed the following position changes:
1) Add one (1) Limited-Term Homeless Response Specialist I/II (840/841) 1.0 FTE Position
The City continues to experience a significant unsheltered homeless population, with an increase of 203 individuals identified in the most recent point-in-time count.

While efforts to reduce large encampments have been effective, this has resulted in a greater dispersion of smaller encampments across the City, increasing the need for broader and more responsive outreach. The addition of 1.0 FTE Homelessness Response Shelter and Outreach Specialist will allow for two-person teams to be deployed simultaneously, which is necessary for employee safety and to effectively serve multiple locations.

Finance
The Finance Department proposed the following position changes:
1) Add one (1) Management Analyst (702) 1.0 FTE Position In November 2025, voters approved Measure C, establishing new and complex responsibilities for the Finance Department, including administration of new property and transfer taxes, processing exemption requests, collection of unpaid taxes, and financial management of a new fund with 13 eligible expenditure categories and associated projects. The addition of a Management Analyst will provide the capacity needed to administer these functions, ensure accurate financial tracking and reporting, and support coordination with the required oversight board. This position advances fiscal transparency by delivering clear reporting on revenues and expenditures, supports the City’s Housing and Homelessness strategic goals through effective stewardship of Measure C funds, and ensures ongoing compliance with the regulatory and reporting requirements established by the measure.

35.2.6 FY 2027 Budget
Human Resources
The Human Resources Department proposed the following position changes:
1) Add one (1) Assistant HR Director 1.0 FTE Position
2) Delete one (1) Human Resources Manager 1.0 FTE Position The addition of an Assistant Human Resources Director is recommended to support the growing scope, complexity, and strategic importance of the City’s Human Resources function. HR serves as a compliance and governance arm of the City, ensuring adherence to federal, state, and local laws, labor agreements, and internal policies, while also advancing the City’s mission to attract, support, and grow a thriving and diverse workforce. The volume and complexity of work has increased significantly, including expanded legal requirements (e.g., evolving leave laws, employee relations standards, and new legislation such as AB 1484 and AB 339), major organizational initiatives (e.g., enterprise-wide ERP implementation, citywide training program, classification and compensation studies), and heightened service demands in employee and labor relations. The addition of an Assistant Director will strengthen executive-level oversight, improve responsiveness and consistency in decision-making, and provide dedicated leadership for critical functions such as employee and labor relations, policy development, and organizational effectiveness. This position will also enhance risk management by ensuring timely, well-informed, and defensible actions, while allowing the HR Director to maintain focus on strategic initiatives, cross-departmental leadership, and long-term workforce planning. Overall, this role is essential to sustaining compliant operations, supporting departments effectively, and advancing a high-performing, accountable, and service-oriented organization.

Office of Economic Development
The Office of Economic Development proposed the following position changes:
1) Add one (1) Property Manager (770) 1.0 FTE Position
The addition of a Property Manager is recommended to address the expanded scope and complexity of the City’s property management responsibilities following pandemic-related shifts in the retail environment and the growth of mixed-use developments. The Business Services Division now manages a significant increase in leasing activity, including securing new tenants for City-owned properties, renegotiating lease terms, and administering City support programs, all of which require dedicated and focused oversight. In addition, the City must conduct ongoing assessments of its real estate portfolio to ensure alignment with operational and long-term facility needs. Key sites, including the Tannery Arts Center, require enhanced management to address financial performance, tenant

35.2.7 FY 2027 Budget
relations, and underutilization of economic potential, particularly where current operations are not meeting financial obligations or community expectations. This position will support fiscal sustainability by increasing occupancy, generating sales tax revenue, and reducing City subsidy costs, while also improving conditions in high-impact areas such as the Tannery and downtown Riverwalk. Strengthened property management will contribute to a more vibrant, safe, and economically active environment, directly supporting City goals related to fiscal responsibility, public safety, and a thriving downtown.

Parks and Recreation
The Parks and Recreation Department proposed the following position changes:
1) Add one (1) Custodian (133) 0.5 FTE Position
2) Add one (1) Recreation Specialist (197) 0.5 FTE Position 3) Delete one (1) Administrative Assistant I/II 1.0 FTE Position The addition of a 0.50 FTE Custodian is recommended to support increased use and demand at City community centers, which has placed additional strain on existing maintenance and operational capacity. This position will provide essential custodial support to ensure facilities remain clean, safe, and operational for expanded programming and public use. Increasing staffing in this area will help maintain service standards, extend the life of City facilities, and support a positive experience for community members utilizing these spaces.

The addition of a 0.50 FTE Recreation Specialist will improve operational efficiency by expanding coverage of essential program and administrative functions across assigned service areas. This position will support core duties including facility reservations, invoice and payment processing, event and activity coordination, infield program delivery, and front-line customer service. Increasing capacity in these areas ensures more consistent service delivery, reduces delays in processing and program support, and enhances the department’s ability to meet community needs in a timely and responsive manner.

Police
The Police Department proposed the following position changes:
1) Delete one (1) Police Property and Evidence Specialist 2) Delete one (1) Police Records Technician
The proposed deletion of two positions reflects an internal reorganization of the Police Department’s operational structure to better align supervisory oversight with current service delivery needs.

35.2.8 FY 2027 Budget
Public Works
The Public Works Department proposed the following position changes:
1) Delete one (1) Administrative Assistant I/II 1.0 FTE Position Administrative staff play a vital role in supporting the department’s daily operations, which contribute to fiscal sustainability and transparency, strong business communities and a vibrant downtown, homelessness response, public safety and community well-being, and the maintenance of natural and built infrastructure. To strengthen coordination and oversight within the Administration Division, the proposal establishes an Administrative Assistant III lead position to provide higherlevel direction, workflow management, and support to administrative staff. As part of this restructuring, one Administrative Assistant II position will be eliminated, with duties reassessed and streamlined under the lead structure to improve efficiency and consistency of service. This adjustment enhances lead capacity while maintaining core administrative functions and aligning resources with operational needs.

Water
The Water Department proposed the following position changes:
1) Add one (1) Water Treatment Supervisor Lead 1.0 FTE Position 2) Delete one (1) Environmental Program Analyst I/II 1.0 FTE Position The addition of a Water Treatment Supervisor (Lead) is recommended to address increased operational complexity within the Water Department as it advances the City’s ten-year Capital Improvement Program, including major upgrades to the Graham Hill Water Treatment Plant. These projects require enhanced coordination among operations staff, maintenance teams, engineers, contractors, and regulatory agencies while maintaining uninterrupted water treatment and compliance with regulatory standards. This lead-level position will provide essential frontline operational oversight, including daily coordination of staff, scheduling, work prioritization, and technical guidance during construction, commissioning, and ongoing operations. Establishing this role strengthens operational continuity, supports regulatory compliance, and ensures reliable delivery of safe drinking water during a critical period of infrastructure investment and system modernization.

The deletion of the Environmental Programs Analyst I/II (EPA) is due to the department meetings its conservation goals and no longer needing the EPA position.

35.2.9 FY 2027 Budget
Other Administrative Changes
Various departments proposed cost allocation changes based on changes in grant funding. Additionally, the following changes are also proposed. 1) Title Change only of Administrative Services Supervisor to Administrative Supervisor
2) Title Change only of Account Services Supervisor to Accounting Supervisor 3) Community Development cost allocations to Code Compliance Manager 4) Parks and Recreation cost allocation to varying positions related to the creation of a new parks unit
5) Police Department cost allocations of Community Service Officers and Police Officers to/from Homelessness Response Activity to reflect evolving coverage needs
6) Cost allocation change of Homeless Response Specialist II positions, for 50% of position costs to be funded by Opioid Settlement Fund, Fund 294.

Additionally, 0.5 FTE Homeless Response Specialist II positions will move from grant funding to being funded by the General Fund.

35.2.10 36.1

36.2 36.3

36.4 36.5

36.6 36.7

Santa Cruz City CouncilJune 9, 2026

Santa Cruz City Council
June 9, 2026