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Grass Valley approves preliminary FY 2026-27 budget; sets June 9 public hearing for adoption
Summary
Finance staff presented a near-balanced preliminary budget with a small projected deficit, continued concern about CalPERS unfunded liabilities, enterprise fund updates, capital projects totaling about $11.8 million, and three proposed new positions; the council approved the preliminary budget and scheduled a June 9 public hearing for final adoption.
Finance Director Jennifer Schinsky presented the City's preliminary FY 2026-27 budget, a three-year forecast, and an overview of operating, enterprise and capital funds. Key points:
- General fund: The proposed budget shows a near-balanced result with a roughly $17,000 deficit in the coming year. Revenue growth is modest and relies on property-tax increases tied to development, sales-tax stability, and a transient-occupancy tax of about $1.3 million.
- CalPERS: The city continues to face an unfunded pension-liability payment; staff proposed contracting a CalPERS consultant to analyze smoothing and bond options and to present a strategy this summer.
- Enterprise funds: Water rates and reserves require analysis; a rate study is underway. The sewer fund has improved cash position after paying off a prior debt and proposes several sewer-capital projects totaling multi‑millions, which would be paid from fund balance, grants, or bonds as appropriate.
- Capital projects: Staff proposed a slate of active projects and multi-source funding totaling approximately $11.79 million across transportation, park improvements, and other capital work; many projects combine grants and local Measure E/B funds.
- Staffing and capital purchases: The proposed budget includes three personnel changes: a paid-parking enforcement officer (funded by paid-parking revenue), a replacement officer to backfill the outreach liaison funded primarily by AB 109 grant revenue, and a measure-B-funded defensible-space program manager. The police records-management system replacement was estimated at roughly $425,000 full roll-up cost and was listed in consent/implementation planning.
After questions from council about revenue sources, reserves, and timing for a five-year forecast, the council unanimously approved the preliminary budget and set the public hearing for adoption on June 9.
