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Finance subcommittee hears multi‑year deficit forecast, staff recommends renewing Measure D for June 2026 ballot
Summary
Staff presented a preliminary 3–5 year forecast showing a $3.4 million shortfall in FY 2026–27 that could grow in later years, recommended placing a Measure D library parcel tax renewal on the June 2026 ballot, and previewed hiring freeze and other cost‑containment steps to limit service impacts.
The Seminole City Council Finance Subcommittee received a preliminary 3‑to‑5‑year forecast Wednesday that projects a structural general fund gap beginning in fiscal year 2026–27 and recommended the council place a Measure D library parcel tax renewal on the June 2026 ballot.
Finance Director (speaker 2) told the subcommittee the city’s preliminary forecast shows a roughly $3.4 million gap in 2026–27, with out‑year pressures growing to an estimated $4.3–$5.9 million unless the city adopts ongoing balancing measures. “We have on the council long range calendar plans to basically have the similar discussion … and we are recommending … that the renewal of the measure d library tax be placed on the June 2026 ballot,” the finance director said.
Why it matters: the presentation framed the gap as a structural deficit — meaning one‑time fixes would only delay the shortfall — and urged a mix of revenue and recurring cost‑containment measures to preserve service levels and prudent reserves. The finance director said staff will bring a recommendation to the full council on Feb. 2 and, if supported, a formal adoption item would return on Feb. 17; the last practical date for ballot action was noted as the first council meeting in March.
Staff outlined near‑term steps to limit budget damage while longer solutions are developed. Those include a short‑term hiring freeze for most positions through the remainder of the fiscal year (public safety sworn dispatchers exempt), an instruction to departments to model 1%–2% expenditure reduction scenarios, and tightened review of reclassification requests. The director also said personnel costs through the first half of the fiscal year are tracking over budget and staff will issue directives to department directors to manage those costs.
The presentation named specific revenue pressures: a modest loss of overhead revenue tied to Marinwood fire service arrangements and possible changes as San Rafael Sanitation District transitions, plus a pause in the vehicle franchise fee that funds streets. Staff also flagged deferred maintenance and underfunded equipment and facility replacement reserves as ongoing gaps.
On public safety, staff previewed an upcoming Feb. 2 council agenda item recommending extension of a three‑year Safe Team pilot contract through the remainder of this fiscal year and into the next, and said future budgeting will need to identify sustainable funding beyond the extension period.
Audience reaction and public comment: a resident speaking during public comment praised the city’s transparency but urged clear sequencing and communications so voters understand trade‑offs. “Clear early communication about trade offs builds understanding and trust, and trust is far harder to rebuild than any budget gap,” the commenter said.
Next steps: staff said polling on Measure D is underway, with topline results expected soon; staff recommended advancing the Measure D renewal to the June 2026 ballot at the Feb. 2 council meeting and returning with formal adoption items on Feb. 17. The subcommittee will receive ongoing updates, including the midyear budget update in March.
