Placerville council reviews tight FY2025–26 budget, hears CIP, staffing and equipment requests

At a special meeting Wednesday, April 30, 2025, the Placerville City Council reviewed the draft fiscal year 2025–26 operating and capital improvement program (CIP) budgets and heard department-by-department requests for projects, equipment and staffing. Staff emphasized the city is facing a “very tight budget year,” and council scheduled a second workshop and an open hearing in June to continue work toward budget adoption.

The budget presentation, led by Dave Warren and other department heads, outlined the difference between the operating budget (day-to-day services such as police, public works and administration) and the CIP (street, storm drain, water and sewer projects). Warren told council that the city uses fund accounting and relies heavily on sales tax: “Sales tax makes up 59% of your general fund,” he said, underscoring the revenue volatility staff must assume in forecasts.

Why it matters: Council must balance a relatively constrained operating picture with capital needs — including a single large broadband project staff described as a roughly $20 million build — while keeping reserves for required match on state and federal grants. Staff said the draft budget will be revised after council direction, with an adoption target in June and the ability to amend the final document later.

Major numbers and revenue context

- Staff reported the most recent total operating budget at about $24,780,000 for the 2024 fiscal year (presented as context for FY25–26 planning). - The CIP spreadsheet in the meeting materials listed a total of $4,634,142 in recommended expenditures across funds. - Staff identified a single standalone broadband/fiber project estimated at about $20,000,000 that will be programmed in future years. - Measure revenues: staff said Measure L produces roughly $2,800,000 annually and Measure H about $1,400,000; those local measures are expected to fund street, water and sewer projects and to provide match for grants.

Capital projects and priorities

Engineering and public works detailed projects…