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Ceres council hears FY2026 budget showing $2 million shortfall; proposal to reallocate council funds to police fails
Summary
Finance Director Shannon Esnine told the Ceres City Council the FY2026 proposed general fund projects $27.5 million in revenue against nearly $29.5 million in expenditures, leaving a $2 million deficit; a motion to shift council professional-development and medical-insurance funds to the police budget failed 2–3, while the council directed staff to ask Stanislaus County Animal Services for a budget review.
Finance Director Shannon Esnine told the Ceres City Council on June 9 that the proposed fiscal year 2026 general fund projects $27.5 million in revenue and just under $29.5 million in expenditures, leaving a projected $2 million deficit to be covered by a one-time draw from reserves.
"This gap will be covered through a draw down from the fund balance, a temporary strategy that allows us to maintain service levels while we explore long-term solutions," Esnine said, presenting the budget and noting a projected post-draw reserve of $4.8 million, or 16.3% of expenditures — slightly below the Government Finance Officers’ recommended 17% minimum.
Council members focused their questions on specific revenue streams and potential cost offsets. Council Member Rotero asked whether the Newman dispatch contract funded two dispatch positions; Esnine confirmed it pays for two dispatch positions. Council members also asked staff for more detail on the Stanislaus County Animal Services joint-powers agreement (JPA), the city’s grant-writing returns, and several pending state and federal grant possibilities, including a delayed Cal Fire tree grant for roughly $1.04 million.
Council Member Casey moved to shift council professional-development and medical-insurance funds into the police department budget to support additional training and a position the chief identified as needed. The motion failed on a 2–3 roll-call vote (Casey and Council Member Otto in favor; Council Member Vieiraa, Vice Mayor Martinez and Mayor Lopez opposed).
A separate motion directing staff to request that Stanislaus County Animal Services present a review of its finances and services for potential savings passed 4–1. The council asked staff to invite the agency to explain the JPA arrangements, how charges are calculated (for example, per animal intake vs. length of stay), and whether local options could reduce the city’s cost.
Esnine said the city is preserving core services while recognizing a budget gap and that the council’s feedback tonight would shape the adopted budget scheduled for June 23. No public comments were made during the budget presentation.
