Wasco council adopts FY2026–27 budget, renews city manager contract and approves police MOU

The Wasco City Council on June 18 adopted the city’s FY2026–27 operating budget and its five‑year capital improvement program, renewed the city manager’s contract and approved a ratified memorandum of understanding (MOU) with the Wasco Police Officers Association, the council reported.

Council members voted unanimously, 4–0, with Mayor Saldanha absent, to adopt the budget and related resolutions after staff described conservative revenue forecasts and a worst‑case deficit estimate. Mr. Hurlburt (city manager) told the council staff used “essentially flat” revenue projections for tax receipts and had prepared worst‑case expense forecasts so the city would not be surprised by shortfalls. “We have the absolute most negative projection we can possibly use for revenues,” he said during the discussion.

The budget vote included adoption of a five‑year CIP; staff said most capital projects are funded by grants or enterprise funds and that the city will prioritize which projects to start this fiscal year. Council members repeatedly urged close monitoring and quarterly budget reviews. The presiding official (Mayor Pro Tem) said the council should be “very cautious” and ready to act if the economic outlook deteriorates.

Separately, after a closed‑session review and a public report‑out, the council unanimously moved to renew the city manager’s employment terms and later adopted a related employment agreement by resolution. The council reported the renewal provides an initial two‑year term with up to three 1‑year extensions and sets the city manager salary at $217,510.

The council also adopted a ratified memorandum of understanding with the Wasco Police Officers Association; staff said the POA membership approved the negotiated terms and recommended the council adopt the same language discussed in closed session. The salary schedule required for CalPERS compliance — reorganized into separate scales for police, bargaining units and management — was also adopted.

Votes at a glance - Adopted FY2026–27 annual operating budget and 5‑year CIP (Resolution): 4 ayes, Mayor Saldanha absent. Staff justified conservative revenue forecasts and said budget amendments may be needed as audits are completed. - Renewed city manager contract; adopted employment agreement (Item F/18I): reported unanimous council action to renew with two‑year initial term, up to three 1‑year extensions; salary set at $217,510; subsequent roll‑call adoption of the employment agreement 4–0. - Adopted MOU with Wasco Police Officers Association (Item E): ratified by POA membership and adopted by council 4–0. - Adopted updated salary schedule for FY2026–27 (CalPERS compliance) (Item G): council approved a split schedule reflecting bargaining group differences, 4–0. - Authorized city manager to select CDBG program option that best fits city needs and execute associated agreements by July 7, 2026: 4–0. - Called and ordered the consolidated municipal election for Districts 1 and 3, Nov. 3, 2026: 4–0.

Why it matters: The budget and personnel actions set financial priorities and staffing costs for the coming fiscal year, while the police MOU and salary schedule formalize labor costs and compliance with retirement rules. Council members emphasized close monitoring and the ability to act quickly if revenues or expenses diverge from the city’s conservative forecasts.

What’s next: Staff said it will issue a translated public notice about the police drone deployment and will bring quarterly budget updates and potential budget amendments back to council as audits and fiscal data are completed. The municipal election notice and timeline will be published in English and Spanish; nomination filing opens July 13.