The City Council takes up the proposed 2026-2028 budget Monday. The proposal projects revenues growing faster than expenditures and includes a $24.2 million capital improvement program, more than double what the staff report describes as the city's historical average of $5 million to $10 million annually.
What's happening: According to the proposed budget's staff report, revenues are projected to grow at 3.2% annually through fiscal year 2027-28 while expenditures grow at 2.8%, reversing a prior period in which expenditures outpaced revenues. The staff report describes the shift as a "positive inflection."
What's proposed: The staff report characterizes the increase as largely one-time: the city issued a $15 million bond earlier this year at 2.75%, backed by Measure L sales tax revenue approved by voters in November 2024, with debt service carried outside the General Fund, according to the staff report. The bond funds a backlog of deferred projects including a new public works complex, a renovation of the Golf Course Clubhouse, and facility upgrades at the Library, City Hall, and the Community Center. Capital spending is projected to fall back to $11.2 million in FY2027-28, according to the proposed budget.
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