Sheriff, fire and insurance costs drive long‑term budget pressure, staff warns

City staff told the council that three cost categories — police contract costs, fire services and insurance — have risen substantially over the prior four years and are a principal driver of long‑term budget pressure.

Kofi Atobam said the city has seen an approximate 42% increase in police‑related costs and a roughly 74% increase in fire‑related costs over a four‑year period, changes the staff attributed to higher contracted rates, addition of a dedicated lieutenant and an added medic unit. He also said insurance costs have increased about 106% over four years, driven in part by rising cybersecurity premiums and a shrinking pool of California insurers.

Atobam said public safety accounts for about 49% of the projected general fund expenditures in the first budget year and that contract rate increases from the county sheriff’s department are commonly retroactive and driven by labor, insurance and overhead charges. He noted sheriff contract rate notices typically arrive months into the fiscal year and may be retroactive, which complicates mid‑year budget adjustments.

A resident commenter, Isaiah Harris, asked how accurate sheriff estimates have been; staff replied the county’s projections are usually close — for example, a projected 7.5% increase yielded an actual 7.03% change in the current year. Council members emphasized that public safety spending is a priority but that continued cost growth will require careful financial planning.

No vote or ordinance was taken; the discussion was informational and folded into the preliminary budget presented for later adoption.