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East Palo Alto council adopts FY2026–27 budget, directs $275,000 from reserves for YMCA and Epicenter
Summary
The East Palo Alto City Council approved the city’s FY2026–27 budget on June 23, adding $175,000 for the YMCA and $100,000 for Epicenter from one‑time reserves and increasing event funding. Council also adopted the successor agency budget and an appropriation‑limit resolution.
The East Palo Alto City Council on June 23 adopted its fiscal year 2026–27 budget, agreeing to a package of one‑time additions that funds local youth and cultural programs while using reserves to close an anticipated general‑fund gap.
Tomoku, the city’s finance director, told the council the proposed citywide budget projects $68.5 million in revenue and $82.9 million in expenditures, producing a $14.4 million citywide shortfall and an approximately $4.7 million deficit in the general fund driven by strategic priorities and timing differences. Staff recommended bridging the gap with one‑time reserve uses: $3.5 million from general‑fund reserves and $1.2 million from an IT project fund.
Council members debated program priorities and revenue sources during a lengthy hearing that included public comment from YMCA and Epicenter representatives. The council recorded modifications before voting to adopt the budget: $175,000 from general‑fund reserves to continue YMCA weekend programming, $100,000 from general‑fund reserves for Epicenter events and operations, an increase in city event grants to $12,000 each for five events (totaling $60,000), and a $5,000 one‑time allocation for council clothing/gear. A council member moved to adopt the budget with those adjustments; the motion was seconded and the council voted to approve the package.
During the public comment period, Varenisa (Bernice) Nunez, executive director of the East Palo Alto YMCA, said the organization had served 683 residents through combined programs this year, exceeding goals for weekend wellness and youth sports. Jose Sanchez, YMCA healthy‑living director, and other community speakers urged expanded hours and continued city support. Epicenter representatives and staff described more than 3,000 attendees for recent cultural events and requested continued funding to sustain community programming.
Council members discussed possible revenue offsets, including parking enforcement, but staff cautioned that citation revenue can fluctuate and should not be programmed as a permanent funding source. Staff also said the $12 million earmarked for affordable housing production is not yet tied to a specific project and will be released through a competitive notice of funding availability.
The council also adopted the successor agency’s FY2026–27 budget earlier in the meeting and approved a separate appropriation‑limit resolution confirming the city’s constitutional spending cap calculations.
The council’s adoption uses one‑time reserve spending to maintain targeted community programs while acknowledging an ongoing structural imbalance in recurring revenues and expenditures that staff said will require long‑term fiscal planning.
