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Council adopts FY2026–27 budget and CIP; restores limited program funding from Fund 111 and agrees to phased gymnastics fee review
Summary
By unanimous roll call, Menlo Park approved the FY2026–27 budget and CIP on June 23 after closing a projected gap with fee updates and expenditure reductions and with a pending $1.9M state VLF backfill. Council directed use of Fund 111 to preserve library and indoor recreation programming and asked staff to pursue a phased fee increase for gymnastics (Council directed staff to advertise a maximum and consider phased options).
Menlo Park’s City Council adopted the fiscal year 2026–27 budget and capital improvement plan during the June 23 meeting after staff presented a balanced proposal that reflects fee adjustments, expenditure reductions, and a pending state vehicle license fee (VLF) backfill estimated at about $1.9 million.
Administrative Services Director Fenny Lai said the total proposed budget is approximately $151.1 million, with a general fund of about $89.9 million. Staff described a multi‑year structural deficit risk (an average shortfall estimate of about $3.3 million annually in the forecast) despite the current cycle’s balanced position. Measures taken to balance the budget included updates to the master fee schedule, program reductions and staffing adjustments.
Council discussed several potential additional reductions presented by staff (reduced library hours, special‑event scope, non‑safety overtime and program fee increases). Councilmember Cecilia Taylor moved, and Vice Mayor Wise seconded, a set of resolutions adopting the budget and CIP and—at Taylor’s request—directing staff to use Fund 111 to prevent identified reductions to library programming ($169,255) and indoor recreation programming ($104,400). The motion passed unanimously.
Council also directed staff to bring back a change to the master fee schedule to begin a phased increase to gymnastics fees. After discussion about timing and impact, councilmembers settled on staff advertising a maximum increase (Council discussion identified 20% as a top level for advertisement) with the council retaining discretion at the hearing to set the actual phased amount; staff said any effective date and phasing choices would be scheduled to respect program registration timelines.
Other actions: Council extended the Solid Waste and Water Rate Assistance Program through June 30, 2027 and approved additions to the salary schedule tied to a successor MOU. The council also adopted a purchasing‑policy follow‑up and accepted CIP appropriations as presented.
What’s next: staff will return with master fee schedule language (timing discussed for July meeting if council wants an August fee effective date for some programs), implement the adopted budget actions, and continue a fall 2026 study session on long‑term service level and cost‑recovery policy.
