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American Canyon Fire board adopts preliminary FY 2026–27 budget, flags $1.5 million gap
Summary
The American Canyon Fire Protection District board unanimously approved a preliminary fiscal 2026–27 budget after a presentation showing revenues falling and benefit costs rising; staff warned the operating reserve will shrink and recommended examining fees, grant strategies and reserve policy before final adoption in September.
The American Canyon Fire Protection District on June 23 adopted a preliminary budget for fiscal year 2026–27 after a presentation that projected a multimillion‑dollar shortfall.
Financial consultant Brian Mora told the board the district’s revenue picture is weakening and costs are rising: estimated actual revenue for the current year is about $9.5 million against $9.9 million in expenditures (a roughly $400,000 deficit), and the preliminary budget for 2026–27 shows $9.1 million in revenue against $10.7 million in expenses, a gap the presentation put at about $1.6 million across all funds. Mora said property taxes account for just over 80% of the district’s revenue and fire assessment fees roughly 11%.
The budget presentation and staff responses framed the shortfall largely as a benefits‑driven increase. Tracy Fuller (finance) and staff explained that while base salaries rose modestly, retirement (CalPERS), workers’ compensation and health‑benefit costs are increasing faster — Fuller summarized benefit increases collectively at roughly 12% and noted individual components such as PERS and health insurance are rising in the double digits. The chief and staff also pointed to one‑time and recurring costs, including new apparatus purchases and upcoming turnout‑gear replacements, that further pressure the budget.
Because of the projected deficit, staff said the district’s operating reserve will decline (the district currently follows a 20% contingency reserve and a 50% operating reserve policy). Mora recommended the board consider a reserve‑policy review in September and study potential revenue options — including a fee study and a reexamination of the fire services assessment — noting that placing a general revenue measure on a ballot would likely require work beginning well before 2028.
Board members asked clarifying questions about what is driving the cost increases; staff reiterated the primary drivers are benefit cost inflation and insurance/workers’‑comp increases tied to higher payroll and newer apparatus. After discussion, Vice Chair Jofus Joseph moved to adopt a resolution approving the preliminary budget; a board member seconded and the board approved the motion on a unanimous roll‑call vote.
What happens next: the presentation and discussion were informational and the board approved the preliminary budget; staff will return with final budget material and suggested reserve‑policy language ahead of adoption in September.
