PREPARED BY: ARTURO CASTILLO DATE OF MEETING: 04/08/2026
SUBJECT:
TITLE
CONSIDER PRELIMINARY DRAFT BUDGET FOR FY 2026-27 AND FY 2027-28 BIENNIAL OPERATING BUDGET AND CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET
CEQA: This proposed action is not a project as defined by CEQA.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Approve by minute order; and provide further majority vote direction to the City Manager on finalizing proposed Preliminary DRAFT Budget and CIP Budget for formal adoption in June 2026.
BODY
COMPLIANCE STATEMENTS
Continue Best Management Practices, Fiscal Excellence, and Fiscal Transparency is a major policy goal contained in the FY 2024-26 City Council Priority Workplan, effective April 7, 2025.
BACKGROUND
As required by San Pablo Municipal Code ?? 3.04.240 and 3.04.250, the City Manager presented the Preliminary Draft FY 2026-27 and FY 2027-28 Biennial Operating Budget and Capital Improvement Program (CIP) Budget to the Budget, Fiscal and Legislative Standing Committee on April 1, 2026. The City Council called for a public hearing on the Biennial Operating Budget and CIP Budget at a Special Meeting on April 8, 2026.
Preliminary DRAFT Fiscal Year 2026-27 and Fiscal Year 2027-28 Biennial Budget
The Preliminary DRAFT Biennial Operating Budget and the Capital Improvement Program serve as a guide to the community and staff for the City Council's financial priorities and goals for the upcoming fiscal years. These financial documents are updated with the most current economic, revenue and expenditure information and projections available to City staff.
In December 2023, the Council received a Long-Term Financial Forecast prepared by PFM Asset Management. This report identified a 10-year cumulative General Fund deficit of $44.1M beginning with a $2.1M deficit in FY 2024-25. Since this time, the City staff have worked diligently through zero-based budgeting and targeted cost reductions to mitigate the projected deficit, howeve...
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