Riverbank council adopts FY 2026'27 budget, directs advisory committee to study structural deficit

The Riverbank City Council approved the city's FY 2026'27 operating budget on a 4'1 vote, directing the Budget Advisory Committee and staff to develop options to address a projected structural deficit and requiring performance metrics for Sierra House before its September renewal.

Assistant City Manager Camille Kantor told the council the proposed budget projects $16.0 million in general fund revenues and about $18.8 million in expenditures, leaving a structural gap staff estimated at roughly $2.7 million. Kantor outlined revenue assumptions (sales and property tax growth), planned salary adjustments (scheduled COLAs and lump-sum payments), and enterprise-fund pressures, including a projected water operating deficit that could reach several hundred thousand dollars in the coming year.

Council members debated restoring two requested staffing positions (a deputy city clerk and a finance administrative clerk) and discussed use of a Section 115 pension trust as a smoothing tool for volatile CalPERS payments. Council ultimately approved the budget with three explicit directions: require Sierra House performance metrics by the September renewal, instruct the Budget Advisory Committee to evaluate investment and structural-deficit options at midyear, and ask staff to present structural-deficit mitigation options. Council member Call voted no; the motion carried 4'1.

The approved budget retains funding for items council discussed at the workshop, including recreation subsidies, capital outlays for building maintenance, and an allocation for an externally facilitated water-rate study. Staff noted the adopted budget includes contingency planning and recommended midyear reviews to refine options once actual revenue figures are known.

Public commenters had raised infrastructure and service concerns earlier in the meeting, including a resident who said her household has lacked running water for months; council members said those issues would be referred to appropriate departments for follow-up. The council also asked the Budget Advisory Committee to prioritize review of investments and potential service reductions that could reduce the projected deficit.

The council adopted the motion and directed staff to return with more detailed options at midyear and with the Sierra House performance metrics before the September renewal.