Finance Director Chanel Zamora presented the City of Buellton’s proposed biennial budget for fiscal years 2025–26 and 2026–27 at the City Council meeting on May 22, asking council for direction on several employee benefit and compensation proposals and on how to handle items before final adoption.

Zamora said the draft budget shows a modest operating surplus for 2025–26 and reserves above the city’s 35 percent target, but she warned the numbers are preliminary. “Tonight’s budget is not set in stone,” Zamora told the council, and staff asked councilors whether to include several personnel cost assumptions in the adopted budget or to return them as separate business items for formal action.

The proposals that staff asked council to consider include raising the city’s monthly medical contribution for full‑time employees from $1,200 to $1,800 (proposed effective Jan. 1, 2026), a monthly housing allowance of $750 for full‑time employees, targeted market adjustments for hard‑to‑fill operations positions, a 10 percent market adjustment for department heads, and creating a new administrative analyst position. Staff estimated the housing allowance and medical changes would have noticeable but manageable budget impacts and said the administrative analyst position would cost roughly $135,000 annually including salary and benefits if approved.

Zamora also reviewed nonpersonnel highlights: the proposed budget carries several large capital projects forward from prior years, shows capital expenditures of roughly $11.48 million in 2025–26 (largely carryovers), and assumes no change to water and wastewater rates for the draft presented tonight. She noted revenue projections rely on consultant estimates for sales and property tax and that the transient occupancy tax increase that took effect Feb. 1, 2025, was included in revenue projections.

Council discussion focused on process and next steps rather than immediate votes. Council members agreed which items had general consent to be returned on the consent calendar and which needed fuller discussion as business items. By the end of the meeting staff said it would bring the proposed items back at the June meetings as follows: targeted pay adjustments for the wastewater chief plant operator and lead maintenance/utility field worker and the new administrative analyst position would be placed on the consent calendar; the medical benefit increase, the $750 housing allowance, and the proposed 10 percent department‑head market adjustment would be scheduled as separate business items for fuller council consideration.

No final appropriation motions were taken tonight; council provided direction about what should be included in the next draft and which items the council wanted as standalone actions prior to budget adoption.

The council asked staff to return with the underlying class and compensation study, detailed cost estimates, and the formal resolutions necessary to implement any benefit or salary changes before the budget is adopted.