Yuba City adopts lean FY 2026–27 budget, approves CIP and staffing changes

YUBA CITY — On June 16, 2026, the Yuba City Council unanimously adopted the city’s FY 2026–27 operating budget and capital improvement plan, a package staff said reduces a multiyear structural shortfall while prioritizing public safety and core infrastructure.

City Manager Robert Vendorf told the council the fiscal package trims an earlier $7.8 million projected gap to about $2.2 million through a mix of one‑time funds, use of carryover and targeted staff reductions. "So, your projected deficit going into this fiscal year of 26/27 is a lot — 7.8 million — but we've gotten it down to about 2.2," Vendorf said during his presentation.

The budget document lists a total citywide spending plan of roughly $126 million, with about $62 million in general‑fund needs. Staff proposed that the council target a $1 million starting reserve within a new reserves fund and maintain a $500,000 contingency balance while continuing a hiring freeze and deleting or unfunding several positions to align recurring costs with expected revenues.

Why it matters

Vendorf and department heads told the council rising costs — including pension obligations, health care and workers' compensation — have driven the city into structural deficit territory. The adopted plan aims to stabilize city finances while funding a set of priority projects and safety upgrades. "Eighty‑one and a half percent of discretionary revenue goes to police and fire," Vendorf said, noting public safety remains the largest ongoing cost.

What the council approved

- A balanced FY 2026–27 operating budget and a capital improvement program that staff said totals roughly $126 million. - New formal policies for reserves and contingencies (see below) and a hiring/position plan that removes roughly 34 positions in total and leaves about a dozen unfunded positions on the books to be addressed later. - Continued investment in targeted capital work, including pavement projects, park improvements and utility upgrades presented by staff.

Staff presentations and priorities

Human Resources Director Gina Roland outlined workforce initiatives to improve recruitment, retention and HR systems; she said the city plans to go live with a new HR/payroll system in October. The police and fire chiefs described technology investments — including a CAD (computer aided dispatch) and records management upgrade for the police department and "tablet command" and station alerting upgrades for the fire department — that officials said are meant to improve interagency data sharing and response reliability.

Development services presented economic development priorities, including continued outreach on the former Kmart site and a zoning code update. Public works highlighted near‑term paving projects and larger corridor rehabilitation proposals (Walton Avenue, Bogue Road, Garden Highway) and reminded the council the wastewater outfall diffuser project will be a multiyear, high‑cost undertaking (discussed separately at the same meeting).

Council reaction and next steps

Council members thanked staff for the work needed to arrive at a reduced deficit and emphasized the need for transparency as the year progresses. Council Member Dave Shaw said the executive team has laid a foundation for longer‑term fiscal stability: "Last year we had to learn to crawl all over again. This year we're up walking," he said.

The adopted budget takes effect July 1, 2026. Staff said some program restorations may be re‑evaluated if restricted grant awards or carryover balances materially change actual year‑end fund balances; the council asked for periodic status updates on reserves and program impacts.

Ending

Because several actions in the package (personnel reclassifications, policy adoptions) are implementation steps for the adopted budget, staff will return with the administrative documents and specific pay‑schedule changes to complete execution of the plan. The council voted 5–0 to adopt the budget as presented.