Albany standing committee reviews proposed 2025–26 budget; warns of 2026–27 shortfall

City of Albany officials presented a proposed biennial budget to the City Council’s audit and fiscal sustainability standing committee on Monday, May 12, 2025, saying the draft for fiscal year 2025–26 is balanced but that fiscal year 2026–27 currently shows a roughly $1.112 million shortfall driven by pension obligations and rising labor costs.

Finance Director Rena, who led the presentation, said the administration had "right sized" revenue estimates and used transfers and special revenues to limit general-fund exposure. "The proposed budget for fiscal year 25–26, for the first time in many years, is balanced," she said, adding that the city had tightened revenue assumptions after stronger-than-expected actuals in the prior cycle.

The nut of the discussion was that balancing 2025–26 depends on several moving parts. Staff told the committee Albany remains heavily reliant on property tax—assessor preliminary estimates showed about 3.7% growth for 2025–26—but sales tax is softer following the closure of Golden Gate Fields and investment earnings are uncertain. The presentation also flagged growing pension costs: an 8.7% increase in the city’s unfunded actuarial liability payment line—about $300,000—contributed to longer-term pressure.

Staff outlined specific revenue and expenditure adjustments. New or renewed revenue sources in the proposal include a planned transfer from the sewer enterprise fund to the general fund to cover shared overhead that had not…