Seaside Development News

City Council Adopts FY 2026-2027 Budget, Approving $51.3M in Revenues and Addressing $1.6M Operating Deficit

The City Council reviewed and adopted the fiscal year 2026-2027 operating budget, including the investment policy, capital improvement program, fee schedule, position control list, salary schedule, strategic plan, and reserve amounts. The budget projects revenues of approximately $51.3 million and expenditures of $52.9 million, resulting in an operating deficit of $1.6 million. The budget utilizes reserves as a limited bridge during this fiscal transition, aiming to preserve essential services and workforce capacity. Staff will provide quarterly updates on financial performance, revenue trends, and potential corrective actions. Technical adjustments were made, including a $10,000 reduction in the general fund contribution for the gateway signage improvement project, reallocating $200,000 of Measure X funding for intersection improvements, and several administrative corrections to the budget document. The city remains committed to fiscal discipline while continuing investments in capital improvements like street maintenance and the Broadway Complete Streets project. The reserve funding remains at approximately 88% of the city's policy targets, though long-term forecasts indicate continued reserve pressure.