Berkeley council adopts FY2027 budget after debate over small-sites funding and restoring fire positions

The Berkeley City Council on June 23 adopted the city’s FY2027 annual appropriations ordinance after a long meeting that centered on two choices: preserve money set aside for the small-sites housing preservation program, or redirect some of those housing trust funds to avoid layoffs and restore emergency-response staff.

Mayor Ishii called the special meeting to order and staff confirmed that Councilmember Bartlett would participate remotely under the Brown Act’s just-cause exception. City staff then reviewed changes made since the June 16 budget session, saying the proposed FY2027 gross appropriation was in the neighborhood of $918.1 million before amendments.

Councilmember Keserwani, who floated a supplemental earlier in the meeting, proposed using general-fund sources to restore nine full-time-equivalent positions in the fire department — five firefighters, three paramedics and one fire inspector — and to fund local projects including a Euclid Street garbage corral. Keserwani said the proposal aims to balance “fiscal sustainability” while protecting essential services and noted that a small-sites allocation of $3.8 million had been proposed for FY27 to preserve below-market units.

The public-comment period stretched for more than two hours and drew more than 60 speakers. Thomas Gregory, representing a chapter of SEIU, urged the council to use one-time money to prevent six layoffs affecting members and said the city could temporarily use reserves or existing one-time pots to preserve filled positions. “Laying off workers is a rainy day for the workers and for the city,” Gregory said, asking the council for additional time and funding to avoid layoffs.

Union representatives and firefighters pressed the council to restore emergency staffing. Steven Gilman of the International Association of Firefighters said voters had repeatedly approved public-safety measures (cited in public comments as Measures FF and GG) and urged the council to honor those public commitments, arguing that staffing is critical to response times and public safety.

At the same time, many residents, housing advocates and community land trust leaders warned against stripping funds from the small-sites preservation program — a voter-supported source intended to conserve existing affordable housing. Speakers including Nakia Harris (a community health worker), Isabel Gaston (District 6 resident), and representatives from local land trusts described small-sites projects as preservation tools that allow existing tenants to remain in place and argued the city would lose trust if the funds were reallocated.

After a midmeeting recess, Mayor Ishii proposed friendly amendments that would preserve the mayor’s overall approach while funding the nine fire/paramedic positions from increased ambulance-transport revenue and other non‑Measure U1 (housing-trust) sources, rather than clawing back the small-sites allocation. Councilmember Keserwani offered a substitute motion to keep more flexibility in housing trust allocations and to retain certain staff positions; the council took a roll-call vote and the substitute failed.

The council then voted on the main motion as amended on the floor. The mayor’s amended proposal — which kept $2.5 million in small-sites carryover, preserved $1.3 million in the housing trust fund for new affordable housing, and funded five firefighters, three paramedics and a fire inspector through non‑U1 revenue sources — passed by recorded vote.

City staff then adjusted ordinance numbers to reflect the changes. The city manager said the council’s actions increased gross appropriations by $3,515,334, yielding a revised FY2027 gross appropriation of $921,596,116 and commensurate net-appropriation updates. The ordinance as amended was adopted, and the council adjourned.

What the vote does and what comes next The adopted package restores nine public-safety positions for FY27 and preserves designated small-sites funding carried forward for acquisition opportunities under the city’s housing trust. Staff told the council there are acquisition prospects in the pipeline that could use the preserved funds but said awards typically require application review and that, by direction in the meeting, funds should be returned to the city if an acquisition has not closed within 36 months.

The council also directed staff to incorporate the on-the-record amendments into the FY2027 annual appropriations ordinance; staff confirmed the numeric changes to appropriations before the meeting closed. The council signaled it will revisit midyear budget adjustments in early 2027 depending on revenue trends, including potential changes tied to November ballot measures and ambulance-transport receipts.

Vote at a glance - Substitute motion (to preserve a different mix of housing/funding and retain some positions): failed on roll call. - Main motion (mayor’s amended package adopting supplemental changes and FY2027 appropriations): passed on roll call; the clerk recorded the vote and the ordinance was adopted.

The council left the door open for a midyear review next year to reevaluate staffing and funding if revenues improve or new allocations arrive. The meeting adjourned following formal adoption of the ordinance.