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Council adopts FY2026–27 budget, GANN limit and Measure A work plan; CIP approved
Summary
The council adopted the FY2026–27 citywide budget and appropriations, approved the rolling three-year capital improvement program, set the Gann appropriations limit and approved the Measure A spending plan. Staff highlighted reserves, a $500,000 contribution to Maryale interim shelter and potential ballot measures for additional revenue.
On June 15 the Sanfell City Council approved the city's FY2026–27 budget, adopted the rolling three-year Capital Improvement Program (CIP), set the Gann appropriations limit for the year, and approved the Measure A spending plan.
Interim City Manager Paul Nazio summarized the final budget package and one-time uses. The proposed all-funds budget totals approximately $28.2 million with net appropriations of about $177.6 million across funds. Staff recommended one-time allocations including $2.0 million into the capital program and a $500,000 contribution toward operations at the Maryale interim shelter, consistent with county coordination.
Nazio warned that while reserves and one-time allocations balance FY2026–27, structural deficits remain in out-year projections and the city will need longer-term revenue solutions. He noted two high-level options staff has analyzed for possible voter consideration: a property transfer tax increase (which could generate an estimated $6 million annually) and a narrower public-safety parcel or square-footage tax (estimated roughly $3.1 million); staff said it will return with polling and detail if council wants to pursue a November ballot measure.
Council unanimously adopted the CIP, the budget resolution, the Gann appropriations limit and the Measure A annual work plan by roll call. Council members thanked staff for detailed work on the financial plan and for ongoing transparency in forecasting and asset management.
What happens next: the adopted budget goes into effect July 1; staff will continue to monitor revenues and report back on out-year projections and any recommended revenue measures.
