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Modesto Council unanimously adopts $674.2 million FY 2026-27 budget and Measure H spending plan
Summary
On June 2, 2026 the Modesto City Council unanimously adopted the fiscal year 2026-27 operating and capital budgets (all-funds $674.2M) and approved a Measure H spending plan that includes $7.7M in new program funding and one-time uses of reserves to cover a near-term gap.
Modesto's City Council voted unanimously June 2 to adopt the fiscal year 2026-27 city budget, approving four related resolutions that set operating appropriations, budget policy and position allocations.
City Manager said, "We are pleased to present the fiscal year 2627 budget," and staff presented an overview showing a $215.6 million general fund and an all-funds total of roughly $674.2 million. Steve Christensen, the city's OPM director, summarized Measure H allocations and said the final proposed plan includes $7.7 million in new program spending and about $51 million in total Measure H commitments for fiscal 2026-27, with a projected Measure H fund balance of about $23 million at year-end.
Why it matters: the budget funds public safety and capital projects, allocates Measure H revenue to both ongoing and one-time projects, and includes staffing adjustments and several new positions. Staff highlighted that Measure H will subsidize a portion of the general fund and cover a $2 million supplement previously supported by ARPA.
Council members sought clarifications before voting. Council Member Bavaro asked whether the $2 million ARPA-related supplement is ongoing; staff replied this identifies lost ARPA funding now being covered from Measure H in the short term and that the city's plan emphasizes limiting new ongoing Measure H commitments and using reserves for one-time spending. Council Member Wright questioned costs and phases for the "Austin Spot" project; staff said phase one is funded at $3 million and two additional phases remain, with an estimated additional $5 million and a proposed one-to-one fundraising match to help cover future phases.
Formal action: Council Member Wright moved the package of budget resolutions and Council Member Scutia Brighton seconded. The clerk called the roll: Council Member Ricky, Council Member Bavaro, Vice Mayor Williams, Council Member Wright, Council Member Scutia Brighton, Council Member Alvarez and Mayor Suz Wallen all voted yes; the motions carried unanimously.
What comes next: the adopted budget provides operating appropriations effective July 1, 2026 and directs staff to implement the Measure H spending plan and return with any follow-up items, including the fundraising plan for remaining phases of Austin Spot.
