City Council

B. ADOPTION OF THE FISCAL YEAR 2026-27 OPERATING BUDGET, CAPITAL\nIMPROVEMENT PROGRAM, AND APPROPRIATIONS LIMIT\nThe City Council will hold a public hearing to consider adoption of the proposed\nFiscal Year 2026-2027 Operating Budget, Capital Improvement Plan, and\nAppropriations Limit. With the utilization of reserves, the proposed General\nFund budget is balanced, with revenues and transfers-in estimated at\n$59,273,000, and proposed expenditures and transfers-out totaling\n$59,908,000. Expenditures exceed revenues by $635,000 and will be funded by\nGeneral Fund reserves. Across all City funds, total projected revenue is\n$96,850,000 and total proposed expenditures are $96,222,000. The proposed\nCIP includes $9,132,000 in new funding to support ten capital projects.\nCalifornia Environmental Quality Act (CEQA) Determination: Not a Project as\ndefined in Section 15378 of the State CEQA Guidelines.\nRecommended Action:\nStaff recommends that the City Council conduct a public hearing on the\nproposed 2026-27 operating and capital improvement program budgets, and\nappropriations limit, and after receiving comments and testimony adopt the\nfollowing Resolutions:\n1. Resolution No. 26-16 adopting the 2026-27 Operating Budget.\n2. Resolution No. 26-17 adopting the 2026-27 Capital Improvement Program\nBudget.\n3. Resolution No. 26-14 establishing the 2026-27 Appropriations Limit.