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Salinas committee backs two-year budget cycle, citing longer planning horizon and staff efficiencies
Summary
The finance committee recommended the City Council adopt a biennial (two-year) budget starting FY 2026–27, with staff arguing the approach improves long-term planning, aligns operating and capital budgets, and reduces annual administrative effort; the committee voted in favor on a recorded roll call.
The Salinas Finance Committee voted to recommend the City Council adopt a two-year (biennial) budget cycle beginning with FY 2026–27 and FY 2027–28, agreeing that a longer budget horizon can improve planning for capital projects and allow staff more time for implementation.
Finance director Sue Ann Anders presented the proposal and listed benefits including aligning operating and capital improvement budgets, providing community certainty around services and taxes, and giving staff more time for implementation and evaluation. "Staff's recommendation today is that you receive the report, provide input on the benefits of a biennial budget, operating and capital improvement program budget," Anders said.
Anders acknowledged disadvantages, including greater reliance on multi-year forecasts, and told the committee that Amazon-related revenue is incorporated into the FY 2026–27 forecast but remains a projection. "We have incorporated Amazon revenue for 2627," Anders said, adding that the city worked with a financial advisor and a sales-tax consultant to produce conservative forecasts and that midyear reviews will allow course corrections.
Department directors and other staff described operational benefits of a two-year cycle, including reduced annual workload for intensive budget analysis and the ability to align hiring and project timelines across a 24-month horizon. Committee members said the approach would not eliminate midyear adjustments and welcomed the flexibility to make changes during midyear reviews.
A motion to recommend the biennial budget cycle to the City Council passed on a recorded roll call. Staff said next steps include preparing the council report and following the proposed calendar (community outreach in December, midyear reviews in February and a June public hearing to adopt the biennial budget).
