Vista council hears budget outlook showing projected shortfalls, explores cuts and options for Wave Water Park

City finance staff told the Vista City Council on a March workshop that preliminary estimates show projected deficits in the general fund for both fiscal years 2025–26 and 2026–27 and urged council to work with staff on options to balance the budget.

Mike Silvia, the city’s finance director, told the council “it’s unlikely that the city's existing revenue sources are gonna be able to sustain the current level of services the city provides to its citizens in the long term without either exponential increases to existing revenues, or a new revenue source.” Sarah Taylor, the city’s finance manager, said total general fund revenues and other sources are estimated at $123,700,000 for fiscal year 2025–26 and $127,400,000 for fiscal year 2026–27 while staff currently estimate expenses at $107,700,000 and $114,000,000, respectively.

Why it matters: the gap between revenue and spending — coupled with uncertain economic forecasts, declining legal cannabis sales and growing pension obligations — led council members to press staff for additional analysis and short-term options such as a hiring freeze, re-examining the Wave Water Park subsidy, and targeted program changes.

Key revenue and reserve figures presented by staff include an estimated $6,000,000 in cannabis tax revenue for the current year (a decline from prior years), with staff recommending a $4,460,000 cap on ongoing operating uses and directing excess cannabis revenue at…