Salinas council studies $323.9 million biennial budget as debate swirls over Abbott Street and Amazon impact fee

The Salinas City Council met May 26 for a special study session on the proposed biennial budget for fiscal years 2026–27 and 2027–28, reviewing department presentations and a citywide capital improvement program that staff estimates will total roughly $87.5 million over the two years. Finance Director Selena Andrews opened the staff presentation and said the proposal includes a general fund personnel cost of about $135.3 million (roughly 68% of the general fund) and a proposed total of $323.9 million in operating and capital resources for year 1.

Why it matters: Councilmembers and residents focused attention on how the city plans to balance rising personnel costs and deferred infrastructure work while preserving reserves. Several speakers urged the council to avoid shifting money away from long‑promised neighborhood projects to fund higher‑cost corridors like Abbott Street, and multiple commenters and one councilmember pressed staff about a $10 million traffic‑impact payment from Amazon that was mentioned by council members but was not shown in the operating budget materials.

Staff presentation and major figures Selena Andrews and Assistant Finance Director A. Pedroza said the budget is balanced through a mix of projected revenues, use of limited fund balance, and reallocation of CIP carryovers. Year‑one general fund resources are shown at about $193.1 million with personnel and non‑personnel expenditures described in the budget packet. Staff highlighted proposed additions including unfreezing four police positions, some community development non‑general‑fund positions supported by permit fees, and a $500,000 rental assistance allocation already built into the current proposal.

Abbott Street and CIP tradeoffs Public Works Director David Jacobs told the council the Abbott Street project is substantial and likely more costly than initially estimated; staff recommended repurposing roughly $3.4 million of carryover and residual CIP balances to help cover Abbott and additional traffic calming projects. Multiple public commenters, including LULAC President Chris Burrer, argued that reallocating funds would unduly delay improvements in neighborhoods that have waited years for street and sidewalk upgrades. "The answer cannot always be to take from one neighborhood to give to another," Burrer said, calling for industry contributions to freight‑related wear.

Amazon impact fee: where the $10 million is Several commenters and Councilmember Andrew Sandoval asked why an anticipated $10 million in traffic impact fees from Amazon did not appear in the budget materials. City Manager Renee Mendez responded that the impact fee revenue has been received and is held in a separate impact‑fee fund and therefore does not appear in the general fund operating budget. "The money is in the fund," Mendez said, adding that individual projects the impact funds will support are still being developed and staff will present a more detailed flow and project list. Mendez emphasized that impact funds cannot be used for general fund purposes and must be programmed for eligible capital projects.

Public safety and staffing Police Chief Carlos Acosta reviewed department workload and staffing levels, reporting 150 sworn officers as of April 30 and ongoing recruitment efforts; he said the department had requested additional positions to stabilize overtime and deployment and described a longer‑term target to approach historical staffing levels. Fire Chief Sam (transcribed as Klamick) described response‑time challenges and said proposed funding for an Engine 7 pilot and additional prevention staffing are intended to increase unit‑hour availability.

Next steps The council treated the session as a workshop; no formal vote was taken. City staff said a more detailed budget packet and project‑level information will accompany the formal budget adoption scheduled for the June 16 council meeting. Council direction at the May 26 workshop included requests for clearer CIP programming for impact funds (including the Amazon traffic‑impact money), more detailed reporting on proposed repurposings, and staff follow‑up on the rental assistance and community sponsorship programs.

Attribution Quotes and on‑the‑record figures in this story come from the council meeting transcript and staff presentations on May 26, 2026. Councilmember Andrew Sandoval raised the Amazon fee question during his remarks; City Manager Renee Mendez and Public Works Director David Jacobs provided responses during the staff Q&A.