REPORT TO COUNCIL
SUBJECT
Title
Public Hearing: Action on the Adoption of the Proposed FY 2025/26 & FY 2026/27 Biennial Operating Budget and FY 2025/26 Capital Improvement Program 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. In accordance with this requirement the Proposed FY 2025/26 and FY 2026/2027 Biennial Operating Budget ("Proposed Budget") was submitted to the City Council on May 1, 2025. The Proposed Budget is included as Attachment 1 to this Report to Council and can be found online at:
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In addition, a summary of the Proposed Budget has been prepared. The Budget-in-Brief is included as Attachment 2 to this report and posted on the City's website at:
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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 pa...
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