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Arroyo Grande adopts FY 2026–27 midcycle budget; uses reserves for one‑time capital
Summary
Council adopted the FY 2026–27 midcycle budget that consolidates the general fund with two voter‑approved local sales taxes, projects $32.88 million in revenues and $35.7 million in expenditures, and plans to apply about $2.88 million of reserves to one‑time capital and work plan items while maintaining ~18.4% reserves.
The Arroyo Grande City Council adopted the fiscal year 2026–27 midcycle budget on June 9, approving updated operating numbers and allocations for planned capital projects.
Director of Administrative Services Nicole Valentine presented the consolidated view used for the update (general fund with two local sales taxes), saying the budget proposes $32.88 million in revenues against $35.7 million in expenditures. "The resulting net difference of 2.88 million represents a plan deployment of accumulated fund balances specifically directed towards capital projects and vital work plan items," Valentine said. She told council the midcycle plan anticipates closing FY 2027 with an ending fund balance of more than $6.5 million (about 18.4% reserves).
Valentine said sales and property taxes make up roughly 74% of consolidated funding and that the recommended $55 million across all funds incorporates operations, debt service and capital projects.
After questions and no public comment, a council member moved to adopt the midcycle budget and make the appropriations. The motion passed on a roll call with all council members voting yes.
Next steps: staff will implement appropriations and continue quarterly budget updates and required transparency reporting.
