Council reviews FY 2025–26 proposed budget and CIP ahead of June adoption; staff details forecasts, requests and priorities

City staff presented the proposed fiscal year 2025–26 budget and capital improvement program (CIP) at a May 15 special session study session; the council used the presentation to identify follow-up items the mayor and staff will provide before the June 3 budget hearing and adoption.

Presentation highlights: Director of Administrative Services Christina Alfaro and acting budget manager Anthony Anderson walked the council through a $136 million all‑funds budget proposal with estimated revenues around $135 million and an estimated use of fund balance of roughly $843,000 across funds. Major assumptions include moderate growth in sales tax and property tax using HDL forecasts, a recessionary adjustment in the out years (assumed flat revenue in the model year labeled 2027–28), CalPERS increases based on actuarial projections, CPI-based increases for materials and contracts, and a 4% vacancy assumption used in the 10‑year forecast (the vacancy assumption is used in the…