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Milpitas staff say structural deficit narrowed; council demands data on overtime, workers’ comp and Main Street spending
Summary
City staff told the council a five‑year forecast reduced a previously projected $28.5M structural deficit through a mix of one‑time actions, recurring savings and interest income; council members pressed for memos and datasets on vacancy savings, overtime costs and workers’‑comp administration ahead of June budget adoption.
Milpitas city staff told the City Council on March 3 that a combination of one‑time savings, recurring reductions and stronger interest income has cut a February 2025 structural deficit projection of about $28.5 million by roughly 59% in the five‑year forecast.
The finance director presented the FY2027–FY2031 general fund financial forecast and reserve balances, saying the city is projecting a $2.1 million surplus in FY2627 after a council‑approved $2.7 million use of reserves. The director said one‑time savings and recurring personnel and operational efficiencies were the principal drivers of the improvement and that audited reserve balances as of 6/30/2025 remain healthy.
Council members responded with a series of requests for data and scrutiny. Vice Mayor raised the timing and asked for a single tracking list of all information requests so council…
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