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Carson adopts structurally balanced FY 2026–27 budget, adds $30 million in CIP projects
Summary
The City Council on June 16 adopted a $156.9 million FY 2026–27 budget and a $30 million capital improvement package, while staff warned that $170 million in contested oil‑tax receipts remains in litigation and not available for spending.
The Carson City Council unanimously adopted the fiscal year 2026–27 budget on June 16, approving roughly $156.9 million in revenues and $156.8 million in expenditures and a projected general‑fund surplus of $164,000.
"Staff is pleased to present the fiscal year 26–27 proposed budget for adoption," Finance Director William Jefferson told the council during the public hearing, citing an audited general‑fund balance of $252.5 million and an "available surplus" figure of about $91 million.
The budget package includes $30 million in new capital improvement funding for 2026–27, staff said: $14 million targeted for Leonardo Drive improvements, $8 million to continue the city’s mill‑and‑overlay street program and roughly $2 million for University Drive rehabilitation and parks work. Public Works Director Arlington Rogers said construction on University Drive will begin this summer and that the Leonardo Drive project will be part of next year’s work plan.
Council members pressed staff on several uncertainty points. Mayor Lula Davis Holmes and the finance director reiterated that a chunk of the city’s larger audited balance reflects contested oil‑tax receipts that are the subject of litigation and are not currently usable. "That $170 million is on hold while we're doing the litigation with [Marathon]," the city attorney explained during discussion; Jefferson added that interest and penalties earned on those funds would have to be returned if the city loses the case.
Council members also discussed carryovers and midyear adjustments; Jefferson said the $91 million available surplus was a point‑in‑time figure from the most recent audit and that closing the fiscal year will move some receipts into the available balance. Staff also noted transfers that shifted the housing division into economic development and a reclassification that added one full‑time equivalent to the personnel budget.
After the staff presentation and questions, a council motion to waive further reading and adopt the budget and related resolutions passed on a voice vote. The mayor and finance director said staff will post the detailed project list and updates to CIP timelines once final documents are prepared.
What happens next: staff will post timelines and bid schedules for CIP projects (including the mill/overlay program and Leonardo Drive) and return with any required contract awards. The council also directed staff to follow up on the oil‑tax litigation’s timing and the precise amounts that remain uncertain.
Sources: Staff presentation and public hearing remarks by William Jefferson, Arlington Rogers, and the city manager.
