Santa Cruz adopts balanced FY2025–26 budget and personnel updates

The City Council adopted the fiscal year 2025–26 budget on Tuesday, approving the citywide operating and capital plan and changes to the personnel complement and classification/compensation schedules.

Finance Director Elizabeth Cavill presented the adopted budget package and highlighted that staff had adjusted the proposed plan since the manager’s original release to reflect updated revenue information and other cleanup items, resulting in a balanced general fund budget that does not rely on transfers from reserves. Cavill said the total citywide budget is roughly $534 million and that no new operating general fund positions were added for FY26; some technical staffing changes and enterprise fund positions were included in the personnel resolution.

Council had previously asked for additional analysis on cost‑recovery for fees and median beautification options; Cavill said finance will return with a comprehensive fees analysis in the mid‑year report and that the budget includes $150,000 for citywide median operations and maintenance. Staff also noted that the Ocean Street gateway beautification project will return for a concept review and cost options on the June 24 meeting.

The council voted to adopt the FY26 budget and the related personnel and classification/compensation changes. Council members thanked staff across departments for preparing the balanced budget and noted that advisory‑body input will be integrated more visibly into future budget materials.