Martinez council adopts midyear budget and receives strategic plan progress report amid sales‑tax and cannabis revenue declines

City staff presented a first progress report on the city’s strategic plan and a midyear financial update that staffs said was ‘within our means’ but tight. Lauren (strategic‑plan staff) summarized milestones — waterfront/marina project advances, a new park system master plan, housing element certification and IT modernization — and said nearly all fiscal-year priorities are on track; one equipment/vehicle replacement plan will shift into the next fiscal year.

Finance staff reported projected general‑fund revenue of about $37.7 million if council adopted the recommended amendments. June said staff recommended a modest net revenue increase of $251,000 driven in part by higher building-related plan-review fees, while HDL‑forecasted sales-tax declines drove a $232,602 reduction on the tax line. “Property tax is far and away our number one revenue source,” staff said, noting sales‑tax and cannabis revenues have trended down statewide and will require conservative forecasting going forward.

Staff described urgent enterprise‑fund needs: three water‑system emergencies totaling about $307,000, and recommended advancing design work on water-main replacement and pavement projects, shifting $150,000 into the current year to accelerate next year’s design work. Council asked about contingency levels and the sustainability of new ongoing operating costs such as a downtown restroom contract; staff noted the city manager’s contingency would fall to roughly $7,100 after recommended allocations.

After discussion, the council voted unanimously to adopt the midyear operating and CIP amendments and related resolutions. Staff committed to return in April with an initial baseline for the FY26–27 budget process and updated long‑range financial modeling.