Madera City Council adopts $242.1 million FY 2026–27 budget, funds $30.2M water tank and expands street program

The Madera City Council on Wednesday unanimously adopted a balanced $242.1 million budget for fiscal year 2026–27, approving corrections to the staff report and funding a $30.2 million water storage tank and an expanded street-repair program.

Financial Director Mike Lima presented the proposal and read numerics corrected after staff found misprinted figures in the originally posted packet. Lima described the plan as "the largest budget in the city's history," saying FY 2026–27 appropriations total about $242.1 million and proposed revenues about $254.7 million, which include roughly $82 million in fund balances to support capital spending.

The council-approved plan boosts capital outlay overall to roughly $106 million and enlarges the 10x10 street-repair pilot from $526,000 this year to a proposed $3 million for 2026–27, funded by a transfer of Measure T dollars into the general fund. Lima also highlighted a $30.2 million proposal for construction of a water storage tank in the north part of town and multiple sewer and wastewater plant projects that staff said will be paid from cash rather than new debt.

On the revenue side, Lima told council staff identified new ongoing revenue streams during the budget process, including an adjusted transfer from landscape maintenance CFDs now estimated at about $1.3 million and a police-services agreement with a soon-to-open casino budgeted at nearly $300,000 for the first year. He said the solid-waste fund's healthy balance will also fund safe-and-clean services.

Lima described expense-side adjustments that helped balance the budget: roughly $1.1 million of trims, including a $400,000 reduction to deferred-maintenance transfers, right-sizing of positions (a net reduction of about 7.3 FTE), and a scaled-back aquatics program. He said the net result produced a small surplus that staff placed back into contingency.

Council members asked how staff located the additional CFD and solid-waste funding. Lima said the amounts were identified as part of the regular budget review and analysis rather than a formal single audit, noting the process involves detailed line-item review and subject-matter expertise.

The council moved and seconded approval of the budget with the corrections Lima read into the record; the motion passed unanimously by voice vote. City Clerk Gonzalez confirmed there were no public commenters during the hearing.

The adopted budget also maintains service levels in public safety and parks while funding new and expanded programs, and projects the city's emergency reserve at about $14.2 million (30% of general fund operating expenditures). Lima warned that gas-tax revenues are beginning to flatten, a trend that could complicate future street-funding decisions.

The council will take any necessary budget-book technical corrections in the adopted book and reconvene for regular business on July 1.