Council reviews preliminary FY 2025–26 budget; staff warns of economic uncertainty, council asks staff to explore targeted items

Mountain View — City staff presented a preliminary review of the proposed FY 2025–26 general fund budget at the April 8 council meeting and the Council unanimously accepted the staff recommendations while directing staff to analyze several follow‑up items.

The presentation and the Council's response Finance and Administrative Services Director Derek Rampone and Assistant Director Grace Zhang presented a budget preview that focused on the general fund. Staff reported that the current fiscal year is trending to end with a larger operating balance than originally adopted: revenues are running above budget and expenditures slightly below. For FY 2025–26 staff proposed a structurally balanced general fund budget with a modest projected operating balance of about $96,000, limited new ongoing positions and approximately $5.6 million in limited‑period funding.

The staff memo highlighted several areas of uncertainty, including the recent federal actions that could affect inflation, tariffs that raise construction and materials costs, and potential changes to municipal tax‑exempt bond rules under consideration in Congress that could raise borrowing costs for the city's planned public safety building. Staff also noted the sensitivity…