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Benicia presents two-year budget focused on balance; community pushes to retain tourism/marketing funds amid Valero uncertainty
Summary
Finance staff presented a balanced two-year proposed budget relying on measures A, B and F for revenue; much of the public urged council to keep a $75,000 tourism/marketing allocation and establish flexible downtown/industrial grants as Valero closure risk looms.
Finance Director Jeff and Budget Manager Roxanna Marotti presented the proposed fiscal 2025–26 and 2026–27 budget, stressing the general fund is balanced without using reserves or one-time funds and noting that the budget restores many cuts from previous cycles. The presentation said sales-tax projections reflect measure-driven revenue (measures A/B/F) rather than organic business growth and highlighted projected increases in professional and technical services tied to housing-element work, technology subscriptions, and staff augmentation for implementation.
Councilmembers pressed for explanations about apparent spikes in professional services spending (from $15.5 million actual to $25.3 million revised), the large one-time grant activity shown in the grant fund, water and wastewater capital timing (repair work and FEMA reimbursement uncertainty), pension- and benefit-related cost growth, and the vacancy-factor centralization. Staff explained several drivers — housing-element implementation, software subscriptions such as OpenGov, contract staff backfills, and reallocated internal service charges — and said they would follow up with more detailed line-item explanations where requested.
Multiple speakers during public comment urged the council to retain tourism and marketing funding (a previously discussed $75,000 item) and to consider a flexible downtown and industrial-park grant or incentive program that could be tailored to small businesses, façade improvements, kitchens, or marketing efforts. Speakers from Venetia Main Street, the Chamber, arts galleries, and small-business owners argued tourism is an economic driver for sales tax and downtown vitality; they noted recent media coverage that required a professional PR response and warned that defunding marketing could erode customer awareness and revenue.
Council agreed to "park" the tourism and downtown-grants discussion and bring more detailed options back in two weeks, with a placeholder in the budget so funds remain available while the council and staff refine eligibility and delivery mechanisms.
The budget will return on June 17 for formal adoption; staff stressed the need to use priority-based budgeting to develop actionable options if larger revenue shocks — for example, a Valero closure affecting utility-user tax — materialize.
