The Sanger City Budget Committee voted unanimously Wednesday to recommend a one‑year spending plan for Measure R for fiscal year 2026 and send the proposal to the City Council for final adoption on June 27.

The plan projects approximately $3.8 million in total revenues — including about $3.6 million in sales tax receipts — and roughly $5.3 million in requested expenditures, producing a projected deficit spend of about $1.5 million for FY2026 if all revenues and expenditures materialize. The proposal includes roughly $3.2 million for personnel costs and funds two additional fire department positions requested by the fire chief.

Why it matters: Measure R (formerly Measure S) provides sales‑tax funding dedicated to public safety. Committee members and staff emphasized that the measure was approved without a sunset provision in November 2024, so the tax remains in effect until changed by voters; the committee’s recommendation moves the administration’s FY2026 spending plan to the full City Council for formal adoption.

Most important details: Michelle, a staff member presenting the plan, told commissioners the personnel line is the primary driver of increased spending, with personnel expenditures requested to be about $502,000 higher than the prior year. She said that increase reflects the two new firefighter positions plus automatic step increases in the pay scale, higher employer specialty pay tied to base salaries, an anticipated ~10% rise in health‑insurance costs and an approximately 7% increase in workers’ compensation premiums.

Michelle said the city projects $3.6 million in sales tax revenue for Measure R and slightly less in interest earnings next year. The administration’s summary shows approximately $3.2 million budgeted for personnel and the remaining requests for operational items and capital projects, including patrol vehicle computers, body‑worn camera storage (needed to meet state retention rules), surveillance cameras, a requested fire truck that has been delayed by long lead times, replacement hose and tools for the fire department, a new animal control truck and a detective vehicle. The administration also described a plan to relocate the council chamber and make the annex building on the west parking lot dedicated to police services, with a perimeter fence requested to secure the facility.

On rollovers and budgeting rules, Michelle said the city used a zero‑based review this cycle: items do not automatically roll forward line‑by‑line. Projects that began in FY2025 and still require completion will be included in FY2026 after review with the chiefs. Nathan, a staff member, confirmed that the largest rollovers tend to be long‑lead capital items such as fire trucks and said, “Right now, it’s taken 3 to 6 years to get a fire truck.”

Commissioners pressed on specific line items. Vice Chair Elizabeth Gonzales asked about a fitness reimbursement line that rose notably in the FY2026 draft: “When I’m looking at the police and fire wages and benefits, it looks like there’s a fitness program that was originally just less than a couple [hundred dollars], and then it went up to 2,800 for police and fire to 1,800. What can you explain kinda what went into that fringe benefit and why it jumped up?” Michelle said staff is researching the account and clarified later that the city has a longstanding program, approved previously by the council, that reimburses employees up to $30 per month for gym memberships; the increase reflected more employees being paid from the Measure R fund submitting reimbursement claims. Michelle told the committee she would confirm legality with the city attorney and report back to the full council.

Committee members also asked about procurement timing and about certain line items that were budgeted in FY2025 but not spent; Michelle said some purchases simply did not occur in the intended year, producing smaller realized deficits in FY2025 than were budgeted, and those unspent funds are either retained in fund balance or reallocated after review. The administration estimates a Measure R fund balance of about $170,000 at the end of FY2026 under the draft plan.

Action: A commissioner moved and another seconded a motion to forward the Measure R FY2026 expenditure plan to the City Council for adoption on June 27. The committee voted in favor; the meeting record shows the motion passed unanimously.

Follow up: Staff committed to ask the city attorney whether the fitness reimbursement is an appropriate use of Measure R funds and to return that clarification publicly at the council presentation. Staff also noted that some capital procurements — notably the fire truck — remain subject to long vendor lead times.

Next steps: The committee’s recommendation will be considered by the Sanger City Council at its June 27 meeting, when councilors will vote on formal adoption of the FY2026 Measure R expenditure plan.