CITY OF SEBASTOPOL CITY COUNCIL
AGENDA ITEM REPORT FOR MEETING OF: February 3, 2026
=========================================================================================== To: Honorable Mayor and City Councilmembers
From: Mary Gourley – Interim City Manager
Ana Kwong – Administrative Services Director
Subject: Budget Meeting Schedule for Fiscal Year 2026-27 City Budget =========================================================================================== RECOMMENDATIONS:
That the City Council Accept the budget schedule for the fiscal year 2026-27.
EXECUTIVE SUMMARY:
The FY2026-27 Budget will focus on core servicesservices and key infrastructure needs. The City'sfinancial position will determine the services and projects included. The Budget Committee, which includes two City Council members, the City Manager, and the Administrative Services Director, reviews with support from the budget presented to the full council.
BACKGROUND:
The budget development schedule includes the formation of a Budget Committee, which is composed of two members of the City Council, the City Manager and the Administrative Services Director. This committee is responsible for conducting the majority of the technical and analytical work required to assemble a preliminary draft budget.
Working closely with City staff, the committee will review departmental requests, evaluate funding needs, and develop recommendations that align with City priorities and fiscal policies. Draft materials produced by the committee will ultimately be reviewed by full City Council for consideration.
To support this work, the Budget Committee will convene as often as necessary aslisted in the calendar throughout the budget preparation cycle. These meetings will focus on examining department-level budgets, discussing operational and capital needs, and refining proposed allocations prior to presenting the draft document to the City Council.
DISCUSSION:
The committee’s responsibilities include conducting a thorough review of the draft budget, engaging in collaborative discussions with City staff, and ensuring that every component of the proposed budget has been fully evaluated. While the committee will follow the schedule outlined in the proposed budget calendar, additional meetings will be convened as needed to review departmental funding requests and refine recommendations. The key purpose of this processisto develop a well-informed, carefully vetted budget recommendation for presentation to the full City Council for their consideration and approval.
In accordance with State law, all cities must adopt their operating budget for the upcoming fiscal year no later than June 30. If the budget is not formally adopted by this deadline, the City is required to pass a resolution authorizing the continued use of the prior year’s budget for a period of up to—but not exceeding—60 days. If the City Council has not completed its review and approval of the budget during the first scheduled meeting in June, the second meeting provides an opportunity to finalize the budget and adopt it before the statutory deadline.
Agenda Item Number 8
Agenda Item Number 8
City Council Meeting Packet of February 3, 2026
STAFF ANALYSIS:
Staff reviewed the proposed budget calendar with the Budget Committee at its meeting on January 12, 2026. After discussing the timeline, key milestones, and anticipated deliverables, the committee expressed support for the approach. Based on this review, the Budget Committee formally recommends adoption of the proposed calendar to guide the development of the upcoming fiscal year budget.
BUDGET COMMITTEE REVIEW
The Budget Committee has reviewed this item at its January 12, 2026 meeting.
CITY COUNCIL GOALS/PRIORITIES/AND OR GENERAL PLAN CONSISTENCY:
Goal 5 – Long Term Financial Sustainability
Achieving Greater Fiscal Resilience and Long Term Fiscal Sustainability COMMUNITY OUTREACH:
This item has been noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to schedule meeting date. The City has also used social media to promote and advertise the City Council Meeting Agenda Items.
FISCAL IMPACT:
No funding impacting for this item.
RESTATED RECOMMENDATION:
That the City Council accept the budget schedule for the fiscal year 2026-27.
CITY COUNCIL OPTIONS:
1. That the City Council accep the budget schedule for the fiscal year 2026-27; or
2. Deny the acceptance of this schedule.
ATTACHMENTS:
FY2026-27 Budget Calendar
APPROVALS:
Department Head Approval: Approval Date 1/5/2026
CEQA Determination (Planning): Approval Date: 1/5/2026
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guidelines.
Administrative Services (Financial): Approval Date: 1/5/2026 Costs authorized in City Approved Budget: ☐ Yes ☒ No ☐ N/A Account Code (f applicable) ____________________________ City Attorney Approval Approval Date: 1/21/26
City Manager Approval: Approval Date: 1/21/26
Agenda Item Number 8
Agenda Item Number 8
City Council Meeting Packet of February 3, 2026
Month Day Due Date Task
Responsible
Department
December Tuesday 30 FY25-26 Estimated Year-End Projection Due All January Monday 5 FY25-26 Estimated Year-End Actual in Budget System Admin Services January Monday 12 Regular Monthly Budget Committee Meeting All January Thursday 29
Receive Data Set Request from Consultant (Cost Allocation Plan Refresh) Admin Services
February Monday 2
FY26-27 Labor Allocation File Provided to Departments for Review and Update Admin Services
February Tuesday 3
City Council Meeting:
Review mid-year budget and financial forecast overview
Quarter 2 (Oct-December) Finanical Updates for General Fund and Enterprise Fund All
February Monday 4 Budget Training Session for Department Heads All | Lead: Admin
Services
February Tuesday 9 Regular Monthly Budget Committee Meeting All March Monday 2 Budget Committee Meeting #1 – starts 10:30 AM All March Monday 9 Budget Committee Meeting #2 – starts 10:30 AM All March Monday 30 Budget Committee Meeting #3 – starts 10:30 AM All April Monday 6 Budget Committee Meeting #4 – starts 10:30 AM All April Monday 20 Budget Committee Meeting #5 – starts 10:30 AM All May Monday 11 Budget Committee Meeting #6 – starts 10:30 AM All May Monday 18 Draft Budget Document to City Council Admin Services June Tuesday 2 Public Hearing – Lighting Assessment District Admin Services June Tuesday 2 Public Hearing – User Fee Schedule Admin Services June Tuesday 2 Public Hearing – FY26-27 Budget Admin Services June Tuesday 16 FY26-27 Budget Adoption All
Fiscal Year 2026-27 Proposed Budget Calendar
Agenda Item Number 8
Agenda Item Number 8
City Council Meeting Packet of February 3, 2026