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Berkeley council adopts 2025–26 biennial budget after marathon meeting
Summary
After hours of public testimony and debate, the Berkeley City Council adopted a two‑year biennial budget that uses a mix of one‑time funds and targeted ongoing allocations, including $5 million per year for a small‑sites preservation program, added funding for employee positions and one‑time draws from the pension trust and fund balance.
The Berkeley City Council on Tuesday adopted its FY 2025–26 biennial budget after more than five hours of presentations, public comment and deliberation.
Budget manager Sharon Frederickson summarized the package as a mix of constrained recurring funding and limited one‑time measures to close a near‑term gap. She told the council the plan relies on vacancy savings, a temporary suspension of contributions to the workers’ compensation fund, a drawdown of a Section 115 pension trust and existing fund balance to balance the books while revenues recover.
Mayor Jesse Adeghen framed the spending plan as a recovery budget and pressed for several supplemental allocations during the meeting. The council adopted the mayor’s recommendation to allocate $5,000,000 per year to a small‑sites (affordable neighborhoods) preservation program to buy and preserve naturally affordable buildings, and approved an additional $150,000 for targeted camera funding in two council districts. The council also approved budgeting an additional $670,240 per year to move a legislative aide classification to the top step, consistent with the city’s practice of budgeting vacant positions at maximum step.
Council members and dozens of public speakers voiced support for several mayoral proposals — including funding for community‑based programs, case management for permanent supportive housing and youth workforce initiatives — while also urging caution about relying on one‑time revenues. Councilmember Kesarwani cautioned that a number of the balancing moves are one‑time and that ongoing staffing costs could create structural pressures in future years; she asked staff to report regularly on key assumptions such as vacancy savings and pension trust balances.
Supporters of the small‑sites program, including residents and representatives of the Bay Area Community Land Trust, urged the council to fund preservation to prevent displacement, arguing the per‑unit preservation cost can be far lower than new construction. Several union speakers and city employees urged the council to fund fair contracts and to restore positions that help the city retain workers.
The council accepted a friendly amendment requiring annual financial reporting and limited technical assistance for community agencies that receive appropriations through the budget process but did not participate in an RFP, to provide transparency about how public dollars are used.
The final motion — incorporating the mayor’s supplemental allocations and the reporting amendment — passed on roll call; the council then approved the corresponding annual appropriations ordinance. The mayor and several council members noted the budget will be revisited in November when year‑end fiscal results and any additional revenues are clearer.
What’s next: staff will incorporate the council’s amendments into the appropriations ordinance and return with the formal budget documents; councilmembers flagged that additional items could be considered at the November amendment once FY24 closeout numbers are finalized.
