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Council schedules budget workshop after third‑quarter review as city projects FY27 shortfall
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Summary
Finance reported FY26 third‑quarter projections with general fund revenues about $650,000 above budget but a projected FY26 use of unassigned fund balance of about $10.3M; council directed staff to convene a May 4 budget workshop to review detailed actuals and options to address an estimated FY27 structural gap.
City finance staff presented the third‑quarter FY26 budget review and projections, then council set a budget workshop schedule to begin detailed FY27 planning.
Budget manager Paul Voladez told council sales and use tax and certain other revenues are projected to finish slightly above budget while personnel services reflect negotiated labor increases; net personnel savings from vacancies are offset in part by higher overtime in public safety. Staff projected a total FY26 use of unassigned fund balance of about $10.3 million under current estimates. The presentation listed expected variances by revenue and expenditure category and identified appropriation requests for specific items in Exhibit A of the report.
Councilmembers pressed for earlier availability of detailed actuals and for a department‑level breakdown of overtime and other drivers of cost. Several members urged a series of workshops to examine revenue options and expenditure reductions to address a projected FY27 shortfall (discussion referenced a multi‑million‑dollar gap in preliminary FY27 assumptions). Staff agreed to produce granular actuals and to convene an initial budget workshop (tentatively May 4 at noon) followed by additional sessions to develop proposals for closing the FY27 gap.
Next steps: Staff will provide department‑level actuals and analyses in advance of the May 4 workshop and prepare options for revenue increases and expenditure reductions for council consideration in subsequent meetings.
