Fiscal Year 2026/27 city budget
Summary
The $72 million budget keeps core services intact while running a small $218,000 general fund deficit covered by reserves. Reserves stay about $4.4 million above the policy floor, and a $24 million capital program targets streets, water, and wastewater — mostly grant-funded.
At a glance
- Total mentions
- 3
- Last 30 days
- 0
Last discussed Jul 27, 2026.
Impact analysis
$72 million in spending authority; $218,000 general fund deficit drawn from an $8.8 million reserve.
Residents keep police, fire, parks, library, and senior services, plus year-round pool operations and expanded recreation programs.
Without Measure J, the city would face a $2.4 million hole; residents pay the new tax, and declining sales tax signals a softening local economy.
Mentions & discussions (3)
City Council (Special) - Jul 27, 2026
The $72 million budget keeps core services intact while running a small $218,000 general fund deficit covered by reserves. Reserves stay about $4.4 million above the policy floor, and a $24 million capital program targets streets, water, and wastewater — mostly grant-funded.
City Council (Regular) - Jan 20, 2026
Sales tax is down $86,000 compared to last year and the general fund projects a $160,000 deficit after Q1 adjustments, but the new Measure J tax brought in $252,000 in one quarter and is effectively covering a $2.4 million structural gap. Council flagged TOT tax collection issues with a hotel, uncollected utility taxes on EV charging stations, upcoming pool operating costs, and a possible TOT increase including short-term rentals.
City Council (Regular) - Jan 6, 2026
The council approved a schedule with six public budget meetings from February through June 2026, starting with a strategic planning session on the general fund's 10-year outlook. Residents will be able to follow along and weigh in on a dedicated budget webpage.
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