City manager previews cautious 2025–26 budget, highlights Measure FP timeline, reserves and homelessness funding

City Manager Mike told the Budget & Finance Commission on April 15 that the city will take a conservative approach when proposing the fiscal 2025–26 operating budget, focusing on executing a newly approved public-safety bond program while holding staffing levels steady.

The city manager said the city has engaged financial and bond counsel and is recruiting a program coordinator for the Measure FP bond program; he estimated “shovels in the ground probably…16 to 18 months” if design and approvals proceed smoothly. He said 11 firms submitted proposals for the program coordinator role and the city is hiring part‑time project management support to coordinate the cross‑department effort.

Why it matters: the bond program and capital work will be the largest near‑term budget priority. At the same time, the manager told commissioners the city faces mixed revenue signals — a strong property reappraisal but flat transient‑occupancy and sales taxes — and must be “very judicious” about borrowing and new hires.

Details on bond timetable, capital priorities and revenues

The manager said the city has selected municipal financial-advisors and bond counsel and expects to approve a disclosure‑counsel retainer in mid‑April. He described a multi‑department delivery team (police, fire, public works, IT and the city manager’s office) and said capital work will be a central focus in FY 2025–26. He repeated his estimate that substantial construction is likely more than a year away, after design development and procurement are complete.

On revenues, the manager said reassessment added about 5.3% in property tax value year…