REPORT TO COUNCIL
SUBJECT
Title
Study Session to Review Proposed FY 2025/26 and FY 2026/27 Biennial Operating Budget and FY 2025/26 Capital Improvement Program Budget Changes
Report
COUNCIL PILLAR
Enhance Community Engagement and Transparency
BACKGROUND
City Charter Section 1302 Budget - Submission to City Council requires that at least 35 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 to the City Council the proposed budget. The Proposed Budget is attached to this memorandum and can be found online at: https://www.santaclaraca.gov/home/showpublisheddocument/86913/638817079281508561.
As part of the 2025 City Council Priority Setting session, the City Council identified priority areas of focus as displayed below. These help provide a policy framework for budget decisions.
In addition, the Proposed Budget includes a set of Budget Principles that 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. In recent years, the Budget Principles have included an exception to the Council policy that would set the Budget Stabilization Reserve (BSR) at 25% of expenditures, allowing the BSR to be set at a minimum of 15% given the City's fiscal challenges. For FY 2025/26, this exception has been removed along with other changes that reflect the current forecast. These principles are incorporated as part of the actions considered in the Proposed Budget. The FY 2025/26 Budget Principles can be found in the Budget and Fiscal Policies section of the budget document.
DISCUSSION
The annual budget serves as a financial plan and operational guide that reflects the policies, goals, and priorities of the City Council and community while also maintaining fiscal stability.
The City's financial position has improved since the adoption of the last biennial operatin...
Click here for full text