BUDGET PROPOSAL
FY2026-2027
JUNE 09, 2026 CITY COUNCIL MEETING
Budget Structure
GENERAL FUND SPECIAL REVENUES
• Administration - 201 Gas Tax - 503
• Public Works - 501 TDA - 504
• Police - 301
• Fire - 401
ENTERPRISE FUNDS GRANT FUNDING
• IMM - 204 COPS - 303
• WATER - 601 Long Range Planning
• CEMETERY - 701 Infrastructure
Revenue Sources - Overview
General Fund Special Revenues
• Property Tax COPS (Federal Funded)
• Sales Tax Gas Tax (State Funded)
• Tourist Occupancy Tax TDA (State Funded)
• Rent & Franchise Fees
• Fees For Services Provided
Enterprise Funds Grant Funds
• Integrated Waste (Rate Payer) Infrastructure
• Water (Rate Payer Funded) Long Range Planning
• Cemetery (Plot Sales)
General Fund Revenue Sources –
• Property Tax
• Sales Tax (9.50% TRINIDAD Tax Rate)
• California State Retail Sales Tax Rate: 7.25%
• Humboldt County Measure Z add-on: (Safety) .50%
• Humboldt County Measure O add-on: (Roads) 1.0%
• Trinidad District Tax Rate (Add-On): 0.75%
• In November 2024, Trinidad voters approved renewal of the .75% sales tax continuation for 4-years, beginning April 01, 2025.
HUMBOLDT COUNTY-CITY TAX RATES as of APRIL 01, 2026
Eureka (10.25%) Blue Lake (9.75%) Rio Dell (9.50%)
Arcata (10.25%) Ferndale (9.50%) Fortuna (9.50%)
GENERAL FUND
FY2027 GENERAL FUND BUDGET
REVENUE VS. EXPENDITURES
• GF Revenue Projection: $967,723
• Operating Expenses: $1,041,083
• Difference: ($73,360)
GENERAL FUND RESERVES
AS OF JUNE 30, 2025*
• Emergency Reserve (75% Target) $692,592
• Budget Stabilization (75% Target) $692,592
• Capital, Special Projects (50% Target) $461,728
• Self-Insured Reserve $15,000
• Fire Dept Capital Reserve $50,700
• Public Works Capital Reserve $10,000
• Town Hall Capital Reserve $4,181
• Unassigned Fund Balances $319,120
• Total Fund Balances (est.) $2,241,732
GENERAL FUND RESERVES
AS OF JUNE 30, 2026*
• RESERVE FUND BALANCE June 30, 2025 $2,241,732
• RESERVE FUNDED PROJECTS FY2026
• Town Hall Windows & Paint - $140,000
• Capital Improvement
• CSA 4 Fire Planning Study - $18,800
• Fire Department Capital Reserve
• RESERVE FUNDED LAWSUIT/TRIAL COSTS - $30,000 est.
• Tsurai Litigation Trial – Unassigned Fund Balance
• City Attorney Trial Expenses Incurred since January 2026: $61,071 • City Planner trial expenses incurred since January 2026: $10,525 EST. RESERVE FUND BALANCE June 30, 2026 $2,052,932
GENERAL FUND DIVISIONS
ADMINISTRATION - 201
• Covers a majority portion of the City Manager, Assistant CM/Clerk, and Administrative Support salaries. Also covers a majority of the contract Planner, Building Official, and City Attorney fees.
• Costs include those that “keep the lights on”; public building utilities, office supplies, Municipal Code revisions, website hosting, etc. • Budget Increase of $35,813 (5%)
• Wages, Health Insurance Benefits and General Insurances - $26,289 (5%) • Includes the fully funded contract City Manager position.
POLICE - 301, and COPS - 303
• Funds a portion of the City Manager salary who oversees Public Safety operations. • Includes Animal Control contract with the County Sheriff Dept. • Budget Increase approximately 8% - Second Amendment approved May 12. • Pacific Coast Security funded at (24 hours/week)
• Budget covered entirely by COPS Grant for a second year. $18,917 reserve.
GENERAL FUND DIVISIONS
FIRE - 401
• Cover honorarium for volunteer Chief and Assistant Chief. • Status quo budget.
PUBLIC WORKS - 501
• Covers the majority portion of public works staff salaries who continue to perform at a high-output and efficient level, reducing the need for contracted services. • Funds street lighting, trail, and public building maintenance costs (Town Hall, Library, Park, and City Annex).
• Flat budget with no grant funded payroll this year.
• Town Hall landscape improvement $3,500 included.
• Reserve funding will cover any additional capital improvement projects desired.
FY2026 CITY PLANNING EXPENSE CHART
FY2026 ORGANIZATIONAL CHART
ADMINISTRATIVE
• City Manager .75 FTE (Full-Time Equivalent)
• City Clerk/ACM 1.0 FTE Adams
• Special Projects Mgr. 1.0 FTE Cather
• Grant Administrator 1.0 FTE Recruitment opened June 01, in progress. • Admin. Assistant 1.0 FTE Souza
Total Admin: 4.75 FTE - 2.67 FTE funded department
PUBLIC WORKS
• Maintenance Supervisor .80 FTE Shipman
• Treatment Op II 1.0 FTE Shadle
• Treatment Op II 1.0 FTE Brown
Total TPW: 1.80 FTE - 2.48 FTE funded department
FY2026 ORGANIZATIONAL CHART
WATER
• Chief Plant Operator* Consultant $4,000/month (Transitional 2-3 months). • Treatment Op III .50 FTE Anderson
• TPW Supervisor .20 FTE Shipman
• Treatment Op II .50 FTE Shadle
• Treatment Op II .50 FTE Brown
Total Water: 1.70 FTE – 2.75 FTE department funded
Proposed Staff for FY2027: 8.18FTE (9 employees, including contract CM) Estimated payroll projection: $866,628
Approximately $42,533 covered by grants
• Leaving $824,093 to be paid for with General, Enterprise, and Special Revenue Funds • Est. $54,246 increase in payroll with Salary Alignment Phase II, split 65/35 with Water • Contract CM Position split $87,546 (General Fund) and $43,120 (Water).
WATER FUND
WATER OPERATING FUND
• Water Sales Revenue: (10% Increase) $ 462,993
• Interest, Penalties, Misc. $ 23,000
• Connection Fees (7) $ 37,500
• Total $523,493
• Annual revenue per connection at base rate: $961.20
• 9 total connections will be on board this year: $8,650.80 • Expenses: (22% decrease) $489,151
• Small Net Gain, $34,267
• Capital Reserves underfunded, -$112,767
• Water Fund out of the ICU, but remains in Transitional Care.
WATER FUND RESERVES
Forecasting Year Ending June 30, 2027
ANNUAL NET PROFIT/LOSS per fiscal year:
2019: - $ 40,971
2020: - $ 36,598
2021: - $235,228Reserve balance FYE2021 est. = $1,170,000 2022: - $346,427
2023: - $523,584
2024: - $291,712
2025: - $44,556 estimated with General Fund gift and zero capital reserve 2026: + $34,267 covering most of 2025 loss, with CM contract factored in.
Variables include:
• + $6,500 with ¾ year with new connections
• + $43,120 (or a portion of) depending on contract CM recruitment status • T3 CPO in-house transition position longevity
• Distribution system or water plant emergencies.
FY2026 WATER FUND BUDGET
GOALS & HIGHLIGHTS
• Interim T-3 Licensed Treatment Plant Operator as per State Law. • 2-3 month transition to in-house T3, and network building. • Continue training and retaining in house, licensed water operators. • Continue and conclude Rate Analysis review, and plan for year 3 follow up rate study.
• Replace valves, prepare for short-term emergencies, and plan and support long-range projects such as radio read meters, TA Comparative Analysis Grant, etc.
GRANTS IN PROGRESS FY2027
FY2026 GENERAL FUND BUDGET
GOALS & HIGHLIGHTS
• Continue staff development and recruitment, implement Salary Alignment Phase II, and optimize efficiency.
• Continued website updates and improvements to enhance public engagement, address ADA accessibility mandates, and access to documents, resources, and services.
• Continued Support of Library, Museum, Chamber, Land Trust. • Maintain Critical & General Services – Public Safety and Admin • Continued progress on the General Plan and Local Coastal Plan Update, and possibly farm-out back-burnered assignments to other specialize planning contractors.
FY2027 PUBLIC WORKS BUDGET
GOALS & HIGHLIGHTS
- CAPITAL PROJECTS -
• Tennis Court Resurface
• Town Hall interior improvements (Civic Club Room, Big Room paint/lighting/audio, etc.)
• Resolve Boardwalk Project land tenure issue with
Rancheria.
NEXT STEPS
• Receive Council input with priorities for discretionary spending. • Adopt FY2026 Budget by Resolution.