Salinas finance committee reviews preliminary FY2025–26 budget, flags reserves and public-safety requests

At a May 6 meeting of the Salinas Finance Committee, Finance Director Selena Anders presented a preliminary update on the city’s fiscal year 2025–26 budget, outlining revenue and expenditure forecasts, proposed reserve replenishment and personnel requests for public safety and other departments.

Anders told the committee the city’s preliminary estimated general fund balance for the current year is $3,200,000 and that staff projects an estimated general fund balance of $3,400,000 at the close of fiscal year 2025–26. “We have a preliminary estimated fund balance of 3,200,000.0,” Anders said. She reported projected revenues of about $185,000,000 and projected expenditures of about $185,400,000 for 2025–26, an approximate 6.2% increase from the prior year.

The committee was told the budget assumes some non‑discretionary cost increases — including general liability premiums, debt service and an animal‑shelter joint powers agreement — plus salary and benefit increases. Anders said staff is presenting a more transparent estimate for overtime this year, reflecting recent experience rather than the prior conservative midyear adjustments: “It’s not like there’s a huge increase in overtime. It’s just more realistic,” she said.

Why it matters: The update frames the council’s fiscal choices for the coming year, including whether to replenish reserves after recent draws and whether to fund ongoing personnel requests from police and fire rather than limited‑term grants. The committee’s input will inform a May 27 budget study session and a June 17 public hearing and adoption vote.

Budget details and priorities - Anders said $16,000,000 in carryover appropriations remain from prior years; staff noted that carryover largely supports striping, pavement and sidewalk maintenance and slurry‑seal improvements. - Staff listed roughly $20,000,000 in larger ongoing capital projects funded or in process, including EV charging at city facilities, Monterey Street garage repairs, Cesar Chavez Park basin work and fire station repairs. - Specific line items flagged during the presentation include $300,000 for striping and signage, $1,700,000 for annual pavement and sidewalk maintenance, $750,000 for sidewalk and drainage improvements, $5,500,000 for street preventative maintenance, and $6,000,000 earmarked for Safe Routes to School. - Anders summarized reserves in the preliminary proposal: economic contingency reserve at about $22,100,000, infrastructure maintenance $4,500,000 and facilities maintenance $1,400,000. She also referenced an “115 trust” used for prefunding CalPERS and other post‑employment liabilities.

Personnel and service‑delivery notes - Anders listed new and continuing staff requests: a business navigator in community development, a management analyst in the police department, an urban forestry crew supervisor in public works, and overtime increases for police and fire. She also identified limited‑term positions in the police department funded 50% by a grant through December, with general fund support planned afterward. - Police Chief Acosta (identified in the meeting) said the department is about 13 officers short and is actively recruiting; he described technology such as a real‑time crime center and camera analytic tools as potential “force multipliers” but said sworn staffing remains a top priority. “Technology is a great tool, and, we’re certainly open to that,” Acosta said. - Fire leadership described long lead times for apparatus purchases and urged long‑range planning for stations and major equipment. The fire chief also discussed revenue‑neutral program ideas, such as business inspection fees, that could offset operating costs.

Next steps and public engagement - Anders said staff will present a budget study session on May 27 and hold a public hearing and adoption on June 17. She described a forthcoming “budget in brief” document intended to condense the full budget for public consumption.

Ending: The committee voted unanimously to receive the preliminary budget update for consideration at future study sessions and the June public hearing.