Madera Council hears FY 2026–27 spending plan; proposes $47.4M general fund and $242.1M total budget

Finance Director Mike Lima presented the City of Madera’s proposed fiscal year 2026–27 spending plan June 17, telling the City Council the draft would fully fund ongoing and one‑time needs with ongoing revenue while increasing the general fund to $47.4 million and the full city budget to $242.1 million.

Lima said the current fiscal year (2025–26) is closing under amended appropriations of $44.2 million and is projected to finish roughly $2 million under budget, improving the city’s reserves. Looking ahead, the proposed budget increases personnel costs by about $1.08 million — primarily the result of newly ratified memoranda of understanding — and includes a $311,000 rise in CalPERS pension payments.

The capital program drives most of the overall increase, Lima told the council. Key capital items in the draft include a $30.2 million water storage tank, $5.6 million in pipeline replacement, and a proposed expansion of the city’s 10x10 street‑paving program from $526,000 to $3 million funded by Measure T. Enterprise budgets also carry major projects: water enterprise totals are proposed to increase from $35.3 million to $52.9 million, reflecting the large water capital investment.

"If we spend every dollar in the proposed budget, we're projecting to put money back into the bank at year end," Lima said, summarizing the presentation.

City Manager Arnoldo Rodriguez responded to council questions about staffing shortages and recruitment. Rodriguez said the police department — the city’s largest employer with roughly 113 staff including 76 sworn officers, dispatch and support personnel — accounts for a significant portion of vacancies. The city has authorized salary adjustments and lateral hiring bonuses to address recruitment challenges and has prioritized filling key engineering and planning positions; two deputy city engineers were expected to start later this summer.

Why it matters: The package would support major infrastructure investments and an expanded pavement program aimed at addressing deferred maintenance, while accounting for member negotiated labor costs and rising retirement liabilities. A draft capital program that front‑loads water infrastructure and several enterprise upgrades would likely shape utility rates and grant‑funding needs in coming years.

What’s next: The council received the expenditure workshop as an informational item and will review and adopt a final budget in subsequent meetings, where council will vote on appropriations and any amendments to the draft plan.