Orinda council adopts biennial budget, approves five‑year CIP and sets one‑time transfers to reserves

The Orinda City Council on June 3 unanimously adopted the city's biennial operating budget for fiscal years 2025–26 and 2026–27 and approved the capital improvement plan (CIP) for fiscal years 2026–2030.

City staff characterized the plan as balanced and intended to maintain current services while directing one‑time uses of accumulated fund balance toward reserves, risk management and capital projects. Assistant City Manager Doug Lascio said, "This is a balanced budget. It maintains current programs and services. Staffing levels remain constant." The council adopted the budget and the CIP by unanimous votes on the resolutions presented at the meeting.

Why it matters: the budget sets spending priorities and the city's immediate approach to infrastructure maintenance and emergency preparedness. The council approved transfers that staff said use accumulated resources rather than recurring revenue: roughly $975,000 to bring the council's reserve policy in line with the new budget level, about $685,000 to the risk management internal service fund to replenish reserves after recent claims and settlements, and $2,000,000 to the capital improvement fund (Fund 700) for projects without other funding sources.

Key facts and decisions

- The budget is a two‑year (biennial) appropriation covering fiscal years 2025–26 and 2026–27; the council also adopted the five‑year CIP through 2030. Staff described the document as balanced and as preserving existing service levels.

- Staff said the city finished the prior year with an unassigned general fund balance of more than $5,000,000; the recommended one‑time transfers use a portion of that balance, leaving additional unprogrammed funds for future needs.

- The staff presentation described several new one‑time or limited‑duration investments: a storm‑drain mapping study (about $500,000 funded from Measure R), an emergency operations plan and training (several hundred thousand dollars, Measure R), and a crossing guard contract in which schools will reimburse 50% of a roughly $120,000 cost.

- The CIP totals shown to council were roughly $22,000,034 in projects over the two‑year cycle and about $37,000,040 across the five‑year horizon; staff noted some projects continue from prior years.

Discussion points

- Elevator modernization: staff reported that continuing study of the library's public elevator increased the estimated cost from an earlier figure of about $125,000 to a working estimate near $225,000 for a fuller modernization. Several council members pushed staff to seek competitive bids and to limit discretionary authority, wanting a smaller or more tightly controlled contract if possible. Staff said any contract above the council's award threshold would return to the council for approval.

- Conservative revenue assumptions: staff said the budget uses conservative revenue forecasts (flat or slight declines on many sources besides property tax) and that sales tax and state actions are the most material external risks to future years. Measure R revenues were described as a comparatively healthy fund with an accumulating balance available for capital and paving projects.

- Internal corrections: staff noted small corrections since the draft (about $30,600 across two years in the general fund summary), a $16,500 correction for Assessment District 11 maintenance detail and an $85,000 correction restoring building maintenance operating items that had been inadvertently omitted.

Outcome and next steps

- The council voted unanimously to adopt the operating budget (resolution to appropriate for fiscal years 2025–26 and 2026–27) and to adopt the capital improvement plan update for fiscal years 2026–2030. Council directed staff to continue to seek competitive pricing on major contracts (for example, the elevator work) and return to council for contract approvals when required by policy.

- Staff will continue monitoring state budget developments and other external revenue risks and will return to council with procurement results and any contract awards requiring council authorization.

Ending: The council praised staff for the presentation and the clarity of materials and approved the two resolutions by unanimous vote, concluding the budget and CIP items for the meeting.