Pleasanton adopts two‑year budget, approves $5‑year CIP and directs study of downtown train quiet zone

The Pleasanton City Council on Tuesday adopted a two‑year operating and capital budget for fiscal years 2025–26 and 2026–27 and approved a five‑year capital improvement program, adopting both votes unanimously.

The council also unanimously directed staff to prepare a feasibility report, proposed funding source and schedule for a railroad quiet zone covering downtown crossings and to return to council with the item for approval.

Why it matters: The budget is intended to balance operations and preserve critical services while addressing growing long‑term pressures — especially rising pension and insurance costs and deferred infrastructure maintenance. Council members and staff said the plan buys time but does not eliminate a longer‑term structural fiscal challenge that will require additional revenue or further changes.

City staff said the budget package reduces identified operating costs by roughly $6.7 million in year 1 and $7.1 million in year 2 compared with the current baseline and preserves core services such as police, fire, parks maintenance and the pool while also increasing the city’s planned transfers to deferred maintenance and capital projects from current levels. Mayor Matt Balch and City Manager Jerry Bowden emphasized the city sought to protect essential services while responding to community priorities.

Key program changes included reduced library hours: staff said library open hours would be cut from 62 to 48 per week, a change staff estimated would save about $830,000 in year 1 and $940,000 in year 2 while the city and labor partners finalize implementation. For school crossing guards the city has reached an interim arrangement with Pleasanton Unified School District under which the district will staff roughly 10 high‑priority crossing locations and the city will cover 12 other locations; staff estimate approximately $210,000 in savings to the city in year 1 and $240,000 in year 2 from that pilot arrangement.

Staff told the council the revised proposal reduced planned use of pension trust funds from $4 million to $3 million in the first year and trimmed the general‑fund contribution to the deferred maintenance program by $1.6 million across the two years (a $1 million reduction in year 1, $600,000 in year 2). Finance Director Susan Hsieh said the general fund reserve is projected to be about 19.9% at the end of year 1 and 19.4% at the end of year 2 (the city’s reserve target is 20%).

The council voted to adopt the operating budget and the 5‑year capital improvement program in separate motions. Both motions passed unanimously (roll calls recorded by name).

Quiet‑zone direction: After an extended public comment period — including multiple residents who measured or described nighttime horn levels — Councilmember Julie Gaydos moved and the council seconded a direction that staff return with a formal agenda report that includes a scope, timeline and funding source for a quiet‑zone feasibility study and the related design work. Traffic engineer Mike Tassano later told the council a conservative schedule to qualify, design and construct a quiet zone typically takes multiple years; his initial engineering estimate — based on recent work in comparable Bay Area cities — put likely construction costs in the low‑hundreds of thousands of dollars and suggested a feasibility/design package could be significantly less than the placeholder figure earlier described by community groups.

Public comment and personnel: The budget hearing drew dozens of speakers. Several residents and small‑business owners urged the council to preserve library, pool and recreation hours; others urged adoption of a quiet zone to reduce train horn noise downtown. Members of the Pleasanton City Employees Association and individual employees urged the council not to lay off city staff; staff told the council the recommended budget reductions included 13.5 full‑time equivalent positions proposed for removal across bargaining units and management. The city manager said those reductions were spread across the organization and included nine positions in the largest bargaining unit. PCEA representatives and other speakers requested postponing layoffs pending resolution of outstanding labor matters.

Staff next steps: Staff said they will (1) finalize and implement the adopted budgets, (2) return with a formal agenda item laying out the quiet‑zone feasibility study scope and funding source at the council’s request, (3) complete a resource review and a prioritized 20‑year capital improvement plan to feed an upcoming sewer and water rate study, and (4) continue consultations with labor over staffing changes.

A final note: Councilmembers and the city manager emphasized the adopted budget only covers the next two fiscal years and that the city will need additional long‑term strategies — including potential revenue options, further efficiencies, or phased capital plans — to address persistent pressures from pension and other costs.