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Finance director lays out FY27 kickoff and 10‑year roadmap; Measure N projection trimmed to $13.5M
Summary
Finance Director Jennifer Wakeakeman presented the FY27 budget kickoff, showing FY26 midyear figures, a downward revision in Measure N revenue projections, and a simple 10‑year model showing historical expenditure growth outpacing revenue growth, and outlined next steps including a long‑term financial plan to be delivered by July.
Finance Director Jennifer Wakeakeman gave the FY27 budget kickoff, reviewed FY26 midyear results and outlined a simplified 10‑year roadmap the city will use to pursue a balanced operating budget by the end of Measure N.
Wakeakeman summarized FY26 midyear figures and reserve targets, then described recent revenue forecast changes: "When the ballot went to the voters, we were expecting $15.6 million a year for Measure N...as of our latest meeting...that amount is now revised to 13.5 million," she said. She also noted a $950,000 downward revision to franchise fee revenues and that gas price increases will raise operational fuel costs while boosting street maintenance gas tax receipts.
Using a simplified model, staff showed that expenditures historically grew about 9% annually while revenues grew roughly 4%, creating a structural gap. Wakeakeman urged focusing on expenditure containment (no new positions/programs without trade‑offs), updating fees where appropriate, and treating Measure N as a one‑time resource for one‑time needs. She flagged policy levers for council consideration including pension/OPEB funding policy changes, reserve policy review, and an infrastructure policy and schedule.
Public commenters asked for a year‑by‑year forecast and downside scenarios. Johannes Tilahan urged publication of recurring revenue exclusive of Measure N and sensitivity analyses for market downturns; Wakeakeman and the city manager committed to a deeper long‑term financial plan prepared with a consultant and scheduled for July, plus additional budget workshops and materials ahead of adoption.
What happens next: Staff will present fee schedule updates for adoption in April, hold budget workshops on revenues/expenses and CIP in April/May, and deliver a consultant‑assisted long‑term financial plan in July.
Ending: Council asked for follow‑up on pension/OPEB trusts, debt‑service schedules and detailed revenue scenarios; the staff pledged to provide those materials during the budget process.
