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Arroyo Grande council directs staff to move forward with Scenario E for FY25'27 budget
Summary
Arroyo Grande City Council voted 5-0 on May 27 to direct staff to advance Scenario E for the preliminary FY 2025'27 biannual operating budget, keeping the city above its minimum reserve while deferring two proposed executive-level hires.
The Arroyo Grande City Council voted unanimously on May 27 to direct staff to proceed with Scenario E in the preliminary fiscal year 2025'27 biannual budget, a package staff said balances service requests while keeping the general fund above the minimum reserve policy.
Administrative Services Director Nicole Valentine reviewed five scenarios that differed mainly on the timing or inclusion of two higher-level staff positions: an assistant city manager (ACM) and an economic development coordinator (EDC). Scenario E includes recommended reclassifications, six services-and-supplies requests and vehicle replacements but does not add the ACM or EDC. Valentine said Scenario E yields a projected general fund balance of about 15.2% at the end of fiscal year 2026'27, above the council's minimum reserve policy floor of 15% but below its 20% goal.
Valentine listed several proposed changes included in the preliminary budget: reclassifying the records clerk to a records supervisor in the Police Department, two engineering reclassifications to improve project delivery capacity, a cloud subscription for body-worn camera management, a Laserfiche cloud upgrade and licenses for public-records processing, a classification and compensation study every three years, and a proposed contract for legislative advocacy and grant writing.
Council members expressed concern about sustaining staff capacity while implementing an ambitious 10-year capital improvement program the city adopted May 13. City Manager Matt Downing emphasized the budget's dependence on sales and property taxes, noting that the Trafficway Bridge replacement project is nearly $14 million and heavily reliant on state-administered funds.
Council member Marviglia and others voiced caution about adding higher-cost positions immediately; Council member Seacrest urged pursuing state-level relief where possible for other pressures such as fire-map impacts. Several council members praised staff for scenario analysis and recommended monitoring revenue projections closely.
After public comment addressing cloud services and security, Council member Guthrie moved and Council member Lowe seconded the motion to adopt Scenario E; the motion passed 5-0. Staff will present a final balanced budget and hold a public hearing on June 10 before appropriations take effect July 1.
