Finance director lays out FY26–27 biannual budget; council hears cuts, reserve risks and request for $500,000 for revenue campaign

Finance Director Nicole Gonzales presented the proposed fiscal‑year 2026–27 biannual budget to the City Council on June 2, laying out a multi‑year forecast, department‑level reductions and reserve targets.

Gonzales told the council the citywide operating budget across all funds projects revenues just under $225 million and higher expenditures in the near term; the city’s general fund forecast shows a projected use of fund balance of roughly $6.1 million in FY26 and $6.4 million in FY27 after staff reductions and technical adjustments. Gonzales reviewed fund balance policy and noted the Government Finance Officers Association recommends maintaining unrestricted reserves at roughly two months of operating costs (about 20%). She said the city’s policy also includes a $5 million emergency set‑aside above that 20% target: “The city of San Leandro's policy is, much more robust. It does has a a designation of $5,000,000 set aside for major emergencies,” she said.

Finance staff told the council the finance committee reviewed an initial forecast and directed deeper reductions; staff returned with a…