Encinitas council advances FY26–27 budget worksheet and parks, crossings, and reserve priorities
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Summary
At a special April budget workshop the Encinitas City Council agreed to advance a draft FY2026–27 budget sheet and place remaining consensus funding into an unassigned reserve while staff prepares more detailed project information for May budget introduction.
The Encinitas City Council on Tuesday advanced a draft FY2026–27 budget worksheet, agreeing to hold additional consensus funds in the city's unassigned fund balance while staff develops more detailed project proposals.
Finance Director Tom Gallup told the council staff estimates show about $8.6 million available for appropriation next year, which factors in an estimated $7.7 million unassigned ending fund balance for the current fiscal year and an expected FEMA reimbursement of roughly $2.6 million for a sinkhole repair. Gallup said operating revenues for FY2026–27 are estimated near $126 million and operating expenditures near $124.6 million, leaving a projected $1.4 million operating surplus.
After hearing more than two hours of public comment and a series of council-member budget “wish lists,” Council Member Lyons moved to approve the worksheet as displayed and move the excess consensus funding into the unassigned fund balance (line item 2). Mayor Ehlers seconded the motion; the motion carried 4–1, with Deputy Mayor Jim O'Hara voting no.
Council members debated several program-level asks: a design/permitting estimate of about $600,000 for potential pickleball courts at Encinitas Community Park, a proposed $200,000 appropriation request for a coastal camera and monitoring system presented by Surfline, and a suggested $100,000 for an inclusionary-housing feasibility study. Council members also discussed maintaining policy reserves (a 20% contingency reserve and a 2% budget stabilization reserve) versus using more of the unassigned balance in the near term. City staff reminded the council the unassigned balance is unrestricted general‑fund money that can be used for either capital or operating needs, and that the city would follow procurement rules (an RFP is required for purchases above $100,000).
On scheduling, staff said they will introduce the operating and capital budgets on May 20 and that adoption is scheduled for June 17. The council directed staff to return with more fully developed project proposals and cost estimates for items identified during the workshop; the additional consensus funds will remain in the unassigned fund balance until those proposals are considered.
The workshop adjourned with the council set to reconvene for its regular meeting at approximately 6:30 p.m.
