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Belmont Council hears FY 2025–26 budget; VLF uncertainty could force reserve usage
Summary
City finance staff presented a proposed FY 2025–26 budget totaling $94.3 million and warned that a $1.4 million general-fund gap would require reserves absent state VLF reimbursement.
City finance staff presented Belmont’s proposed fiscal year 2025–26 budget during the June 10 council meeting, highlighting a potential shortfall tied to an unresolved Vehicle License Fee (VLF) reimbursement from the state.
Director Castaneda and city finance staff said the combined operating budget for the City of Belmont and the Belmont Protection Fire District is $80.8 million, with a $13.5 million capital improvement program for a total citywide budget of $94.3 million. Headcount is unchanged at 144.75 full-time equivalent positions, though staff said some position reallocations are proposed.
Staff reported a projected general-fund shortfall of about $1.4 million for FY 2025–26 that would be covered using reserves unless the state reimburses the city’s share of a past VLF reduction. Castaneda and the city manager told council members that recent legislative budget language included a proposed restoration of county and city VLF shares that would yield about $1.7 million to the city if the governor signs the budget.
Council members thanked state legislators for advocacy but cautioned that the reimbursement is not final: "The governor still has to sign the budget," a city official said. Council discussion also covered the city’s Gann (spending) limit and Prop 13’s effect on assessed value growth and how those rules limit municipal revenues.
Staff said the master fee schedule will be reviewed and a comprehensive fee study (including development impact fees) is planned for next year to ensure fair cost recovery.
No final adoption vote for the budget appeared in the public portion of the transcript; staff presented three related resolutions to be considered by council as part of the adoption process.
