Salinas finance committee reviews preliminary FY 2025–26 budget; staff seeks direction on reserves, staffing and Measure G

Salinas Finance Director Selena Anders presented the preliminary fiscal year 2025–26 budget to the Salinas Finance Committee on May 6, saying the city has a preliminary estimated general fund balance of $3,200,000 for the current year and is projecting a $3,400,000 balance at the close of FY 2025–26.

The presentation summarized revenue and expenditure forecasts, proposed staffing changes and a restructured budget document. Anders said projected revenues for FY 2025–26 are about $185,000,000 and expenditures about $185,400,000, driven in part by non‑discretionary costs and increases in salaries and benefits. "We're introducing a document, to complement the budget document. And so that's the budget in brief," Anders said, describing a shorter public-facing summary of the full budget.

Why it matters: the committee will use the preliminary figures to set priorities before the budget study session on May 27 and the public hearing and adoption on June 17. Committee members pressed staff for options on public safety staffing, street maintenance and community priorities as the city balances reserves against rising costs.

Key figures and proposals - Preliminary estimated general fund balance (current year): $3,200,000. Anders said staff projects the general fund balance to be $3,400,000 at the close of FY 2025–26. - Revenues projected (FY 2025–26): about $185,000,000 (a roughly $4.8 million increase from the prior year). Expenditures projected: about $185,400,000 (a 6.2% increase from prior year). - Estimated year-to-date increases in expenditures (ongoing year): roughly $1,900,000 (estimates while the year is still open). - Preliminary allocations include $16,000,000 of appropriations carried over from prior years for pavement, sidewalks, striping and other infrastructure work. - Economic contingency reserve projected at $22,100,000; infrastructure maintenance $4,500,000; facilities maintenance $1,400,000; a Section 115 trust (for CalPERS/OPEB) was discussed as restricted and not generally accessible except for paying down unfunded liabilities.

Staffing and public safety Anders listed planned personnel additions and limited-term positions: a business navigator in Community Development; a management analyst in Police; an urban forestry crew supervisor in Public Works; and overtime increases for police and fire. Anders said some police positions would be funded 50% by grant funding through December and thereafter by the general fund.

Police Chief Acosta told the committee the department was "down many police officers, 13 to be exact," with four positions frozen, and that recruitment remains a priority. Chief Acosta and the finance director also discussed using technology as a "force multiplier," naming programs such as Peregrine and potential camera-related software to assist enforcement, but stressed that sworn staff remain central to operations.

Fire Department requests The Fire Department described long lead times and high costs for apparatus purchases and said the department is working on a 15–20 year plan for staffing and station needs, including planning for Station 7. The fire chief noted some revenue-generating program ideas, such as a business inspection program, that could be designed to be budget-neutral if implemented.

Budget presentation format and transparency Anders said the budget document will be condensed into a "budget in brief" of roughly 10–12 pages aimed at public consumption, and that department narratives will be more concise. She said overtime estimates are being reported more transparently up front rather than conservatively underestimating and adjusting midyear.

Next steps and timeline Anders and staff said the next formal budget study session is scheduled for May 27, with a public hearing and adoption scheduled for June 17. Committee members asked staff to return with priority-based options — particularly for public safety and infrastructure — that show trade-offs between increasing reserves and funding immediate service needs.

Action A motion to receive the preliminary budget update report was moved and seconded; roll call votes recorded D'Arrigo: yes; De La Rosa: yes; Mayor Donahue: yes. The motion passed.