Selma council reviews tight 2026–27 budget that leans on reserves, one-time funds and internal true-ups

Selma City Council reviewed the proposed 2026–27 budget on Monday, hearing from staff that the city is "structurally in a deficit" and that balancing this year’s plan depends on one-time funding from internal-service reserves, pension-obligation-bond allocations and PARS trust funds.

The presentation by the finance director laid out a $21.3 million revenue estimate and an estimated general-fund ending balance near $14.9 million after planned adjustments. The director said the proposal shows a modest $346,000 surplus that would vanish if additional items are added and warned that the loss of Measure C revenue could reduce future capacity by roughly $1.4 million.

Why it matters: Council members repeatedly pressed staff on the budget’s limited margin and long-term risks. Several asked for missing historical revenue detail for FY 2022–23; one member of the public urged a forensic audit to clarify unusually large 2022–23 expenditures.

"We had a very lean budget this year and we were structurally in a deficit," the finance director said during the presentation, describing the use of reserves and one‑time transfers to balance the plan. A public commenter who identified their address urged a forensic audit of 2022–23, saying audits can be scoped by council to focus on transfers and large expenses.

Key program and capital highlights

- Public safety: The budget proposes modest police restructuring and Measure S-funded equipment including mobile data terminals, tasers and license‑plate‑reader cameras; Police Chief Alcarez said the LPR cameras have been "an enormous help" for investigations. On fire and EMS, the proposal adds six ambulance positions (three paramedics and three EMTs) and budgets $640,000 for two new ambulances.

- Operations and personnel: Personnel remains the largest ongoing cost, with several divisions noting that salaries and benefits account for a large share of operating expense. Staff reported a true‑up effort to more accurately charge internal-service costs to departments.

- Capital program and special revenues: The capital improvement program totals roughly $11.3 million and is funded by a mix of special-revenue sources (CDBG, Measure S, development impact fees). Staff said the presentation assumes only 75% of Measure C funding for the coming year; if Measure C is approved later the city would add it via midyear amendment.

- Culture and enterprise funds: The culture/arts enterprise is shown running a deficit (about $158,000); councilors discussed whether limited general‑fund transfers or downtown façade dollars might address urgent repairs and renovations.

Unresolved items and next steps

Councilors asked staff to provide the missing 2022–23 revenue tables shown in the budget book, and one member asked staff to email the detailed 2022–23 revenue numbers to the council. A public speaker and several councilors suggested exploring a forensic audit of FY 2022–23 to pinpoint large transfers and prior-year anomalies. Staff said the final budget will incorporate any council direction and return for adoption at the second June meeting.

No final votes or formal appropriations were taken at the meeting; the council set direction for final adjustments and asked staff to return with updated materials in mid‑June.