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Seaside council adopts FY2026–27 budget, uses limited reserves to avoid layoffs
Summary
Seaside’s City Council on June 18 adopted a $52.9 million FY2026–27 operating budget that uses limited reserve draws to bridge a roughly $1.6 million operating gap. Staff said the move preserves core services and workforce capacity while continuing capital projects and quarterly fiscal monitoring.
Seaside’s City Council voted unanimously June 18 to adopt the city’s FY2026–27 operating budget after extended public comment and council debate.
The budget projects $51.3 million in general‑fund revenues against about $52.9 million in expenditures, producing an operating shortfall of roughly $1.6 million. Finance staff and the city manager recommended a measured draw on reserves as a one‑year bridge to preserve current services and avoid layoffs while staff pursues revenue diversification and cost‑control measures.
City Manager (name not stated in the record) and Finance Director Jesse Riley told the council the reserve draw is a deliberate stabilization step, not a long‑term fix. Riley outlined technical corrections incorporated into the final document, including a clerical correction to the salary schedule and two project funding reallocations: a $10,000 NIC/TOT adjustment for gateway signage and a $200,000 Measure X reallocation to a CO Avenue / General Jimmore Boulevard intersection improvement. Those adjustments do not materially change the operating gap or projected reserve levels.
Council members pressed staff for more detail on the long‑term plan to restore structural balance. Staff said most short‑term balancing options have been used — hiring freezes, service prioritization and capital project triage — and that the city must pursue a combination of growing recurring revenues, grant funding and careful expenditure control. Quarterly performance reports beginning in October were promised to track revenue trends, vacancy impacts, and reserve balances.
Residents who spoke during public comment urged the council to restore maintenance staffing and to make street and park repairs a priority. Several council members acknowledged those requests and asked staff to return with options for targeted hires or alternative staffing models; city staff cautioned that any added full‑time positions would become ongoing costs that must be covered in future budgets.
The adopted budget includes continuing funding for targeted capital work funded by external grants and the Transient Occupancy Tax program, including street repairs, Laguna Grande trail work and other community projects. Staff said the combination of grant funding and limited reserve draw allows the city to maintain investments while buying time to implement longer‑term fiscal adjustments.
The council’s adoption package also includes the city’s investment policy, capital improvement program, fee schedule, position control list and corrected salary schedule. City staff said they will monitor the impacts and return to council for adjustments if revenue trends worsen.
The budget vote was unanimous. Council members pledged to maintain fiscal discipline while continuing outreach on economic development and funding diversification.
