REPORT TO COUNCIL
SUBJECT
Title
Study Session: Review of the Proposed FY 2026/27 & FY 2027/28 Biennial Capital Improvement Program Budget and FY 2026/27 Operating Budget Amendments
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.
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. Amendments to the FY 2026/27 Adopted Operating Budget are also included. The Proposed Budget is attached to the memorandum 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 address targeted needs; and 3) revise the employee engagement item to include language to inform employees on the content of the budget and priorities for the upcoming year. The proposed FY 2026/27 Budget Principles can be found in the Budget and Fiscal Policies section of this document.
Budget Study Sessions are scheduled for May 5, 2026 and May 19, 2026 and the public hearing and budget adoption are scheduled for June 9, 2026.
DISCUSSION
The annual budget serves as ...
Click here for full text