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Palo Alto council adopts FY2026 budget, restores uncertainty reserve and funds single-role ambulance pilot
Summary
Council adopted the fiscal year 2026 operating and capital budgets, restored a $6 million uncertainty reserve, set the budget stabilization reserve near its target level, authorized a single-role ambulance pilot with new positions, and scheduled placeholders for $6M in savings to be identified in August.
The Palo Alto City Council on June 16 adopted the fiscal year 2026 budget ordinance after a lengthy review that included the new AB 2561 workforce vacancy hearing and a separate review of nonprofit funding. The adopted budget restores a short-term uncertainty reserve, continues the city’s multi-year capital investment plan, and authorizes new staff positions tied to public-safety improvements.
Why it matters: The budget sets operating and capital priorities for the coming year, adds staff for a single-role ambulance pilot in Fire, and includes placeholders and a timeline for staff to identify $6 million in savings as the council requested. It also reaffirmed the city’s table of organization and municipal fee schedule.
Key actions and numbers - Budget adoption: Council adopted the FY2026 operating and capital budgets, the table of organization and updated municipal fees, and accepted the FY2026–2030 Capital Improvement Plan (CIP). The full citywide operating budget…
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