Los Altos council adopts balanced $71.9M FY2026–27 budget, approves $28.6M in capital spending

Los Altos Mayor Meadows and the City Council on June 9 adopted the city’s FY2026–27 operating budget, affirming a $71.9 million general fund revenue estimate and $63.1 million in operating spending that leaves an $8.8 million operating surplus while directing $28.6 million toward capital projects over the next year.

Director Kim, presenting the proposal, said the budget centers on five council priorities — public safety, business and community vitality, circulation safety, environmental sustainability and housing — and funds core services with 165 full‑time equivalent positions. “Everything in this budget starts with the five priorities this council set,” Kim said, adding that the plan balances ongoing services with investments in a new general plan, street maintenance, and downtown improvements.

The council first reviewed high‑level numbers: property taxes provide the largest share of general fund revenue (about $40.8 million), the general fund holds $32.3 million in available reserves (about 51% of the operating budget), and planned capital spending includes $7.7 million for annual street maintenance and projects for the downtown parkway and San Antonio Road improvements. Director Kim said the $28.6 million capital figure is split between $14.9 million carried over from ongoing projects and $13.7 million in new funding.

Councilmembers asked staff how fees were set. Staff said periodic fee studies inform many adjustments (this year, police, parks and administrative fees were reviewed), and the city applies a CPI adjustment (about 2.5%) for many remaining fees. City Manager and finance staff reiterated that the city generally uses a cost‑recovery approach for departmental fees.

After discussion, Councilmember Weinberg moved to adopt the appropriations limit for FY26‑27 and then individually moved a package of related resolutions, including adopting fee and charge schedules, confirming pay schedules and CalPERS compliance, reaffirming the utility users tax (UUT) and transient occupancy tax (TOT) rates, authorizing park impact fund allocations, adopting the FY2026–27 operating budget, adopting the FY2027–FY2031 five‑year capital improvement and major maintenance program, receiving and filing annual impact fee reports, adopting five‑year findings for impact fee funds, and approving year‑end interfund transfers and reserve assignments. Each motion was seconded and carried with a recorded unanimous vote by Councilmembers Daly, Weinberg, Vice Mayor Lang and Mayor Meadows.

Votes at a glance: - Adopt FY2026–27 operating budget: motion carried, yes 4, no 0, abstain 0. - Adopt FY2027–FY2031 five‑year CIP: motion carried, yes 4, no 0, abstain 0. - Adopt fee and charge schedules (attachment referenced in Q&A): motion carried, yes 4, no 0, abstain 0. - Reaffirm UUT and TOT rates: motions carried, yes 4, no 0, abstain 0. (Each resolution was moved and approved in sequence; all recorded votes were unanimous.)

Why it matters: the budget sets city priorities for the coming year and funds major projects that will affect transportation, parks, safety and downtown amenities. The council identified continued monitoring of sales tax trends and state funding uncertainty as areas staff will track in the coming year.

Next steps: the adopted resolutions implement the FY2026–27 spending plan and authorize staff to proceed with the funded projects and programs. The city will continue community outreach on specific capital projects as design and procurement move forward.