Budget committee backs biennial budget recommendation with direction to address PERS unfunded liability

The Pleasant Hill Budget Committee recommended the City Council adopt the proposed biennial budget for fiscal years 2026–27 and 2027–28, but appended a requirement that staff and council outline near-term steps to address the city’s rising PERS unfunded liability.

Eric (finance staff) presented the proposed budget, saying the city expects roughly $32 million in revenue and $30.7 million in expenditures for 2026–27 (not including an anticipated PERS unfunded-liability payment). "We think we'll have a deficit of about $1.9 million," Eric said while reviewing 2025–26 results, and he warned that required PERS payments could materially reduce reserves in future years.

Committee members pressed staff for more granular fund-balance information across the city's roughly 28 funds and asked whether staff maintain a playbook of potential reductions or revenue options if revenue assumptions do not materialize. Members agreed the city faces a structural revenue challenge and emphasized the need to present options and a timetable to the public for addressing the unfunded liability.

After discussion, the committee approved a motion recommending Council adoption of the proposed budget with an addendum directing staff to return with an outline of steps to address the unfunded liability. One committee member recorded opposition on the roll call; the transcript does not record an individual vote tally by name.

The committee emphasized that adopting the budget is administrative and that the council may amend figures later; staff reiterated the city must adopt a budget by June 30 and will pursue a long-term financial forecast and additional revenue/cost options after adoption.

The recommendation will proceed to the City Council for final action.