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Ceres council adopts $96.1 million fiscal 2026 budget over two dissenting votes
Summary
The Ceres City Council approved a $96.1 million citywide budget for fiscal 2026, acknowledging a $2 million structural general‑fund deficit and directing staff to return with process details for a $25,000 council discretionary allocation; the measure passed 3–2.
The Ceres City Council adopted the fiscal year 2026 citywide budget on a 3–2 vote, approving $96.1 million in projected expenditures against $87.2 million in projected revenues and accepting staff recommendations to monitor a $2 million structural deficit in the general fund.
Finance staff opened the public hearing by calling the proposal “the product of months of collaboration among department heads, staff, and community stakeholders,” and said the plan relies on one‑time capital funding and transfers from enterprise funds to cover a $9 million variance between overall revenues and expenditures.
The budget document identifies $29.5 million in general‑fund expenditures versus $27.5 million in projected general‑fund revenues and expects a $4.8 million fund balance at year end (16.3% of expenditures), short of the council’s 18% policy target. Staff also proposed a $19.5 million capital improvement program and said no new full‑time positions were proposed; 14 positions remain unfunded.
Councilmembers split over whether the plan responsibly balances services and fiscal prudence. Councilmember Serena Otero said the public had too little time to review the document and pressed for stronger public engagement, noting, “The budget was given to the public three weeks ago… this clearly is not enough time for public engagement.” Councilmember James Casey said he could not support the measure, adding, “I will find it difficult to vote to approve this budget” because of outstanding audit and transparency questions.
Vice Mayor Martinez and Mayor Lopez defended the package as necessary to preserve core services and retain public‑safety staffing; Martinez moved adoption and Councilmember Viera seconded the motion. On roll call, Martinez, Viera and Mayor Lopez voted yes; Casey and Otero voted no.
Council and staff also debated a $25,000 allocation split among the five councilmembers for discretionary community grants. Staff told the council the $25,000 was reallocated from attorney fees and could revert to the general fund if unused. Councilmembers asked staff to prepare a formal process and to return with a mid‑year report on actuals so the council can reassess use of reserves.
The budget contains several reallocations: a $100,000 reduction in legal services with $50,000 moved to finance for the audit, $25,000 to human resources for contract services and $25,000 to elected officials (to be split $5,000 each). The finance presentation noted the city is grappling with rising costs for detention, insurance and stagnant revenue growth.
The council adopted the two resolutions that together approve the annual budget and set appropriation limits; staff said state law requires adoption before July 1 to authorize expenditures for the new fiscal year. The council agreed to request a return presentation — a mid‑year update or an earlier check‑in — to evaluate revenues and recommend adjustments if needed.
Votes at a glance • Motion to adopt FY 2026 budget and appropriation limits: passed 3–2 (Yes: Vice Mayor Martinez, Councilmember Viera, Mayor Lopez; No: Councilmember James Casey, Councilmember Serena Otero).
What happens next: Staff will implement the adopted spending plan, prepare a process for the $25,000 discretionary allocations, and return to the council for revenue/actuals updates as directed.
