Council reviews two‑year operating budget, Measure H and R allocations and asks staff to prioritize infrastructure and community programs

City staff used the workshop to summarise the proposed two‑year operating budget, the city’s revenue outlook and proposed allocations from voter‑approved measures H and R.

Kim Duran (staff member) told the council the city’s operating budget for 2025–26 is approximately $125 million across all funds and that the capital program for that year totals roughly $268 million. Duran warned the council that sales tax and transient occupancy tax revenues have declined from recent peaks while property‑tax receipts remain relatively strong because of their lagged valuation timing. Staff also told the council a revenue‑neutrality payment schedule will end in three years, freeing up an estimated $11.2 million in 2027–28 for future programming.

On programmatic proposals funded by Measures H and R, staff proposed shifts that increase public‑works infrastructure allocations and raise administrative allocations from 5% to 8% to support delivery capacity for program dollars. Staff highlighted proposed H allocations for community grants ($3.3 million), legacy projects (roughly $1.5 million current allocation), public safety programs, and several public‑works projects including Sunrise Boulevard and neighborhood pavement rehabilitation. Measure R proposals similarly emphasize pavement rehabilitation, economic development incentives ($2.2 million identified), affordable housing and homelessness spending—staff noted a one‑time $1 million allocation to expand the city’s homeless outreach team from five to seven days per week.

Councilmembers pressed staff on program details: which funds cover incentives to businesses, how building‑permit trends and cable franchise fee declines affect forecasts, and whether administrative increases could be reduced. Multiple councilmembers voiced support for sustaining youth programs; staff noted youth center operations and the Boys & Girls Club contract are included in current year budgeting and would see base increases tied to attendance projections.

On policing technology, council directed staff that the ShotSpotter contract will be presented with supporting analysis at the June meeting before contract renewal; several councilmembers requested additional evidence of efficacy and value for money. On Metro Fire’s Squad 61 request and the Rancho Cordova Community Food Hub request, council asked staff to pursue matching and partnership strategies and to return with written proposals before committing city funds.

Council also performed a prioritization exercise for capital and program requests. Staff will use those priorities to refine the draft two‑year budget for formal adoption in the upcoming month.

What happens next: staff will return with a revised budget paper that reflects the council’s prioritization, include a ShotSpotter briefing in June, and present written funding packages for major requests before any appropriation.