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Half Moon Bay council adopts FY 2025–26 budget, notes structural deficit and one‑time fixes
Summary
On a 5–0 roll call the City Council adopted the FY 2025–26 operating and capital budget and related resolutions (Gann appropriation limit and investment policy). Council and staff described a structural deficit, one‑time revenues used to balance next year, and plans for a midyear review and a staffing/organizational restructuring process.
The Half Moon Bay City Council voted unanimously on June 17 to adopt the fiscal year 2025–26 annual operating and capital budget and related resolutions, including setting the Gann appropriation limit and reaffirming the city’s investment policy.
City staff presented a recommended budget showing projected revenues of about $23.8 million and operating expenditures of roughly $24.0 million, producing a near‑term budget gap driven largely by inflationary pressures and increases in fixed costs such as public safety and pension obligations. City finance staff and the city manager explained the adopted package relies in part on one‑time measures — including a planned draw from a sheriff’s escrow (noted at about $900,000) and postponing a $550,000 contribution to the city’s risk‑management fund — and prior‑year savings to reduce an otherwise larger structural shortfall.
Finance Manager Ken Styles and IT analyst Brian Lopez previewed a new online ClearGov transparency platform the city will launch after budget adoption to provide interactive access to revenue, expenditure and project data. The staff presentation also noted a recent fee study and the sales‑tax increase voters approved in November as revenue items that helped the forecast.
Council discussion focused on the structural nature of the deficit, the importance of midyear monitoring, and priorities for revenue growth (for example, measures to strengthen downtown retail and occupancy). City Manager Matthew noted several department vacancies are being held and proposed a short process to evaluate a limited reclassification of one vacant city‑manager‑office position into a public‑works project manager to accelerate key capital projects and grant applications; the council asked staff to return with a recruitment plan and a broader restructuring proposal worked on by an ad hoc council subcommittee.
The motion to adopt the budget and related resolutions passed on a roll call vote of 5–0 (Councilmembers Johnson, Nagingast, Penrose, Vice Mayor Ruddick and Mayor Brownstone voting yes). Staff said a midyear budget review and continued pursuit of grants and revenue strategies will follow.
Why it matters: The adopted budget uses one‑time measures to balance the coming year but leaves a structural deficit that staff and council said will require further changes, program reprioritization, or new revenue strategies.
