Albany adopts biennial budget and master fee updates; council approves several related resolutions

The Albany City Council adopted its biannual operating budget for fiscal years 2025'026 and 2026'027 and approved updates to the master fee schedule during the June 2 meeting.

Finance Director Raina Schwartz presented the proposed two-year operating budget and described the process used to prepare the numbers, saying staff aligned revenues with more recent experience and made conservative assumptions about continued weak sales-tax growth while recognizing continued property-tax growth. Schwartz told the council that labor and pension costs were the largest upward pressures; the city expects a required CalPERS payment increase that will push pension-related costs higher over the next several years.

The council also heard a presentation from Finance Manager Cassie Murphy on the proposed changes to the master fee schedule for FY2025'026. Murphy said staff used the Bay Area consumer-price index (CPI) of 2.76% as the base inflator for many fees and that several departments updated staffing-cost lines or completed fee studies (notably Recreation and Community Services) to better align charges with operational costs. The proposed schedule was posted in advance and staff said it complies with required public-notice rules.

On staffing, Schwartz summarized the city's response to recent state legislation (AB 2561) requiring annual public reporting on vacancies and recruitment. The city reported 118.3 FTE positions citywide with eight currently vacant and three positions held unfunded in the FY25'026 budget; no represented bargaining unit had a vacancy rate above 20 percent, Schwartz said.

The council approved multiple resolutions related to the budget process. During the meeting a council member moved to approve a package of six budget-related resolutions (as listed in the official record); the motion was seconded and carried by roll call. Staff described those resolutions as the formal adoption of the operating budgets for FY25'026 and FY26'027, annual tax-rate settings related to a pension property-tax override, approval of parcel-tax rates for library and other measures at the maximum allowable for FY25'026 (with the two library measures held at their current rates), adoption of the annual appropriations limit and an investment policy reauthorization.

Finance staff said the city will continue to monitor FY26 revenues and expenditures and will return with any necessary amendments for FY27; Schwartz said the FY27 projection in staff's scenario work shows an emerging imbalance that will be addressed during the first-year review of the second-year budget.

Why it matters: The council's actions set the revenue and expenditure framework for city operations for the next two years, confirm fee changes tied to CPI and department studies, and preserve established parcel-tax rates that underwrite services such as library hours.

Votes at a glance

- Consent calendar (included nomination of three priority conservation areas to ABAG): approved by roll call (all yes). - Resolution 2025 34 (Master Fee Schedule, FY2025'026): adopted by roll call (all yes). - Package of budget resolutions (identifiers as stated in the meeting record): motion to approve package carried by roll call (all yes). Specific resolution texts and maximum parcel-tax rates are in the staff packet; the two library parcel taxes were held at current rates rather than increased.

What's next: Staff will continue to track revenues and pension cost changes and report back with any needed adjustments to the FY27 projection; Public Works facility assessments (discussed elsewhere in the meeting) will interact with capital planning and future appropriations.

Speakers quoted or cited in this article

Raina Schwartz, Finance Director (first referenced 5724.575) — presented the biannual budget and fiscal outlook. Cassie Murphy, Finance Manager (first referenced 5419.105) — presented the master fee schedule updates. Mayor Robin Lopez and multiple council members participated in roll-call votes on the resolutions.

Authorities

{"type":"statute","name":"AB 2561","citation":"California Assembly Bill 2561","referenced_by":["albany-budget-master-fee-schedule-2025"]} {"type":"statute","name":"California Government Code section 65008","citation":"Cal. Gov. Code 65008","referenced_by":["albany-budget-master-fee-schedule-2025"]} {"type":"other","name":"CalPERS pension contribution rules","citation":"not specified","referenced_by":["albany-budget-master-fee-schedule-2025"]}

Actions (formal)

{"kind":"other","identifiers":{"agenda_item_id":"consent_calendar","ordinance_number":"","resolution_number":"","case_number":"","contract_number":""},"motion":"Approve consent calendar (includes nomination of 3 priority conservation areas to ABAG)","mover":"not specified","second":"not specified","vote_record":[],"tally":{"yes":5,"no":0,"abstain":0,"absent":0,"recused":0},"outcome":"approved","notes":"Roll call recorded unanimous approval."}

{"kind":"other","identifiers":{"agenda_item_id":"9-1","resolution_number":"2025-34"},"motion":"Adopt master fee schedule for FY2025-26","mover":"not specified","second":"not specified","vote_record":[],"tally":{"yes":5,"no":0,"abstain":0,"absent":0,"recused":0},"outcome":"approved","notes":"Roll call recorded unanimous approval."}

{"kind":"budget_adoption","identifiers":{"agenda_item_id":"9-2","resolution_number_list":["25-20-25-305","25-20-25-306","25-20-25-307","25-20-25-308","25-20-25-309","25-20-25-40"]},"motion":"Adopt biannual operating budget for FY2025-26 and FY2026-27 and related budget resolutions (tax rates, parcel taxes, appropriations limit, investment policy)","mover":"not specified","second":"not specified","vote_record":[],"tally":{"yes":5,"no":0,"abstain":0,"absent":0,"recused":0},"outcome":"approved","notes":"Council approved a package of budget resolutions by roll call; packet includes resolution texts and parcel-tax calculations."}

Discussion vs. decision

Discussion points: the budget aligns revenues to recent experience, recognizes slower sales-tax growth, and includes higher pension payments; master fee updates apply CPI of 2.76% as base, with department-specific changes for better cost recovery. Directions: staff to continue monitoring FY26 results, carry forward vacant positions as proposed, and return with FY27 adjustments as needed; staff to finalize capital and facility-need details. Decisions: council adopted the FY25'026 and FY26'027 operating budgets and approved the master fee schedule and associated resolutions listed in the record.

Clarifying details

{"category":"CPI_inflator","detail":"Bay Area CPI used to adjust many fees","value":"2.76","units":"percent","approximate":false,"source_speaker":"Cassie Murphy"} {"category":"vacant_positions","detail":"Citywide FTEs and vacancies","value":"118.3 total FTEs; 8 vacancies; 3 positions held unfunded","units":"FTE","approximate":false,"source_speaker":"Raina Schwartz"} {"category":"pension_payment_change","detail":"Estimated near-term increase in required payment to cover unfunded pension liability","value":"~300000","units":"USD","approximate":true,"source_speaker":"Raina Schwartz"}

Proper names

[{"name":"City of Albany","type":"agency"},{"name":"Alameda County","type":"agency"},{"name":"Raina Schwartz","type":"person"},{"name":"Cassie Murphy","type":"person"}]

Community relevance

Geographies: ["Albany City"] Funding sources: ["property tax","parcel taxes","special funds (EMS, sewer)"] Impact groups: ["residents receiving city services","taxpayers","library users","recreation program participants"]

Searchable tags

["budget","master fee schedule","parcel tax","CalPERS","AB 2561","Albany"]

Provenance (evidence spans)

{"block_id":"b5724.575","local_start":0,"local_end":260,"evidence_excerpt":"Good evening, mayor and city council members. Raina Schwartz, your finance director. This is, part 2 of your budget process. If the clerk will go ahead and start our PowerPoint. This is the hearing where we are requesting adoption of the biannual budget for fiscal years 25, 26 and 26 27.","global_start":5724,"global_end":5984,"tc_start":"01:35:24","tc_end":"01:39:44","reason_code":"topicintro"}

{"block_id":"b7612.21","local_start":0,"local_end":60,"evidence_excerpt":"I move, we approve resolution 25 20, 25, 30 5, 30 6, 30 7, 30 8, 30 9, and 40.","global_start":7564,"global_end":7636,"tc_start":"02:06:04","tc_end":"02:07:16","reason_code":"topicfinish"}

Salience

{"overall":0.85,"overall_justification":"Adoption of a two-year operating budget and fee schedule sets citywide spending and revenue rules; parcel taxes and pension contributions affect services and long-term fiscal health.","impact_scope":"local","impact_scope_justification":"Affects municipal services and property-tax payers in Albany.","attention_level":"high","attention_level_justification":"Budget adoption is a major municipal decision and affects ensuing year operations.","novelty":0.25,"novelty_justification":"Routine biennial budget adoption, but fiscal pressures from pensions are notable.","timeliness_urgency":0.60,"timeliness_urgency_justification":"The FY25'026 budget takes effect July 1; FY27 projections require near-term planning.","legal_significance":0.40,"legal_significance_justification":"Resolutions set tax rates and appropriation limits under state law (Government Code section 65008); AB 2561 reporting requirements were addressed.","budgetary_significance":0.90,"budgetary_significance_justification":"Sets biennial operating appropriations and parcel-tax rates; directly alters city financial plan.","affected_population_estimate":20000,"affected_population_estimate_justification":"All Albany residents are affected by city budgets and fees; exact estimates not specified.","affected_population_confidence":0.30,"affected_population_confidence_justification":"General local-population approximation.","budget_total_usd":null,"budget_total_usd_justification":"Operating totals are in the adopted budget document (packet); staff recommended adoption as presented."}

Engagement_forecast

{"newsworthiness":{"national":0.00,"regional":0.10,"local":0.95,"justification":"Local budgets are of strong local interest; limited regional or national interest."},"notify_recommendation":{"audience":"city","reason":"All residents and taxed property owners should be notified of fee and parcel-tax actions."},"predicted_interest":{"national":0.00,"regional":0.10,"local":0.85,"justification":"Local civic groups and residents will read or respond to fee and budget changes."},"predicted_click_through":0.30,"predicted_click_through_justification":"Budget mechanics attract engaged local readers."}

Graph_signals

{"jurisdictions":["US-CA-ALB"],"ontology_topics":["municipal budget","tax policy","public finance"],"entities":[{"id":"albany-city","name":"City of Albany","type":"agency"}],"events":[]}