Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget topic
No spam. Unsubscribe anytime.
Council adopts FY 2026–27 budget, selects lower‑cost liability insurance option and delays two spending items pending council approval
Summary
Council approved the FY 2026–27 operating budget after staff reduced a projected deficit from $13.3M to about $4.1M using one‑time measures; council selected Alliant 'Alternative Option Two' for liability coverage (reducing premiums from the budgeted figure) and directed that proposed Christmas decorations and a city branding initiative be returned as line‑item contracts for separate council approval before expenditure.
Administrative Services Director Tiffany Barnett reviewed changes since the June 9 budget workshop, saying staff narrowed the General Fund structural deficit from $13.3 million to about $4.14 million via cost containment, updated revenue estimates and a Measure U contribution applied to liability insurance. Barnett cautioned the structural deficit remains and said additional workforce reductions may be required in future years absent recurring revenue growth.
Alliant broker Robert Low presented three alternative liability placements. Council focused on the middle alternative (Alternative Option Two), which staff recommended because it lowered the budgeted liability premium by roughly $273,000 compared with the prior budget estimate while preserving coverage characteristics without extending the policy term by an additional year. Chief Ariano and staff supported that option and recommended investment in risk management capacity to help control claims exposure.
Council then moved to adopt the FY 2026–27 operating budget, including the selection of Alternative Option Two for liability insurance. During the motion, council specifically directed that two line items in the adopted budget—one for Christmas decorations and one for a city branding initiative—remain appropriated but be restricted from expenditure until the council receives a specific purchase package and votes to release funds. The city manager and staff were also asked to return an item to modify the council’s reserve policy/ordinance for future consideration so the reserve target can be realigned given the current fiscal situation.
The final motion passed by roll call. Staff emphasized the adopted budget uses a mix of one‑time reserves and Measure U contributions to balance the year but that structural solutions will be needed going forward.
