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Shafter council adopts balanced FY2026-27 operating budget and capital-improvement program
Summary
The Shafter City Council approved the FY2026-27 operating budget and capital improvement program, with staff reporting a balanced budget across major funds, enterprise fund recovery driven by rate changes, and near-term capital commitments for public safety and public works.
Shafter City Council voted to adopt the city's FY2026-27 operating budget and capital improvement plan (Resolution 3085) after a presentation from Finance Director Roger Sanchez. The council approved the budget by roll call following a staff review of enterprise fund recoveries and general-fund commitments.
Sanchez told the council the proposed budget is balanced across the general fund and the major enterprise funds. He said water and sewer enterprise funds have moved from deficit to recovery following voter-approved rate changes and that next year the water fund is projected to return to operating surplus. Sanchez noted the largest operating expense categories in the proposed budget are police, public works and economic development; he also pointed to continuing capital needs including wells, pumps and treatment-plant capacity work.
During council questions, staff clarified that power costs to pump water remain the single largest operating cost in the water fund. The staff described the city's solar power purchase agreement (PPA) as a partial offset but said pumping energy remains a material line item. Council members asked about manhole and sewer maintenance projects, the timeline for capital projects and whether rates and grant pursuit will keep the funds on a sustainable path; staff replied that ongoing work and planned impact fees and grant efforts are expected to address capital needs.
Councilmember Espinoza moved to adopt the budget; Councilmember Alvarado seconded and the council approved the appropriation-resolution on roll call. Staff said they will proceed with the adopted CIP and carry out scheduled capital projects, including those described in the meeting's public-works presentations.
The council discussion highlighted that while enterprise funds appear on steadier footing, the general fund remains tight and will require continued management of vacancies and expenditures to sustain balance.
