Committee recommends switching to a biennial budget cycle starting FY 2026–27

The Salinas Finance Committee voted to recommend that the City Council adopt a biennial (two-year) budget cycle beginning with fiscal years 2026–27 and 2027–28.

Selena Andrews, finance director, presented the biennial budget proposal and outlined advantages including a longer planning horizon, better alignment of capital projects with operating costs and reduced frequency of the heavy staff workload associated with annual budget preparation. Andrews said staff would continue to produce a five-year capital improvement program but would adopt the first two years of the CIP along with the first two years of the operating budget.

Andrews cautioned that a two-year cycle relies on forecasts that become less reliable farther into the future and emphasized that the city will preserve the ability to make midyear adjustments. She noted that projected Amazon sales-tax revenue was included in the FY 26/27 forecast but described those numbers as projections shared with the company and prepared with outside financial advisers.

Council members and department directors said the two-year approach would free staff time for implementation and allow better sequencing of hires and projects. One director noted the benefit for recruiting and onboarding staff for multiyear projects: advancing approvals in year two reduces delays for recruitment and project starts. After discussion, a council member moved and a seconded motion to recommend a two-year budget cycle to council; the committee voted to forward the recommendation.

Staff said the biennial process would include public hearings in June and an annual midyear review and that staff will continue to provide updated forecasts during review points.