REPORT TO COUNCIL
SUBJECT
Title
Study Session: Review of and Input on the Proposed FY 2026/27 & FY 2027/28 Biennial Capital Improvement Program Budget and FY 2026/27 Operating Budget Amendments ("Proposed Budget") and setting June 9, 2026 as the Public Hearing Date for City Council Action on the Proposed Budget
Report
BACKGROUND
City Charter Section 1302 Budget - Submission to City Council requires that at least thirty-five days prior to the beginning of each fiscal year, or at such prior date thereto determined by the City Council, the City Manager shall submit the proposed budget to the City Council. After reviewing and making such changes as it deems advisable, Section 1302 then calls for the City Council to set the date for holding a public hearing on the proposed budget, including published notice of that hearing in an official newspaper.
This budget continues the biennial budget process that alternates between an operating and capital budget. This year's budget focuses on the capital infrastructure, supporting the facilities that serve our residents and community. Proposed amendments to the FY 2026/27 Adopted Operating Budget are also included. The proposed Capital Budget and amendments to the Operating Budget ("Proposed Budget") are included as Attachment 1 to this report and can be found online at: https://www.santaclaraca.gov/home/showpublisheddocument/89480/639129921984993075.
The City Council approves a set of Budget Principles each year. These Budget Principles provide a general framework and approach for developing the City's budget, ensuring fiscal stability by considering both the short and long-term impacts of any funding decisions. For FY 2026/27, the proposed principles are revised to 1) include a new item to focus on fiscal sustainability efforts to better position the City long-term, 2) revise an existing item that would explore expanding existing revenue sources and/or add new revenue sources by specifying that these efforts would a...
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