Title
Budget Workshop for Fiscal Year 2026-27 Proposed Mid-Cycle Budget Update to Provide Direction on Funding Changes for June 2, 2026 Midcycle Budget Adoption. [City Council/SACIC] (Finance 10024056)
Body
To: Honorable Mayor and Members of the City Council
From: Adam W. Politzer, Interim City Manager
EXECUTIVE SUMMARY
This Mid-Cycle Budget Update incorporates funding updates and departmental proposals for changes in service levels for Fiscal Year (FY) 2026-27 since the FY 2025-27 Biennial Budget was adopted by the City Council in June 2025. The Interim City Manager is proposing a General Fund budget of $159.53 million in FY 2026-27. The total proposed budget for all funds is $364.18 million and includes funding for six new proposed positions.
Budget adjustments are proposed for the General Fund, special revenue funds, capital projects fund, debt service fund, internal service funds, enterprise fund, and trust/fiduciary funds. The proposed revenue adjustments would increase the General Fund revenue projection by $3,664,210 from $150.49 million to $154.15 million. Overall, the General Fund revenue adjustments exceed expense adjustments by $773,603.
For non-General Fund programs, staff projects an increase in revenues of $822,501 excluding transfers in, and proposes an additional $3,087,807 in expense appropriations, excluding transfers out.
Staff is seeking direction from the City Council on these proposed service level and workforce changes, and other funding changes in order to align the City of Alameda’s (City) spending plan for FY 2026-27 with the City Council’s strategic plan priorities.
BACKGROUND
The City Council adopted the Biennial Budget for FYs 2025-26 and 2026-27 on June 17, 2025 through Resolution No. 16282. This report updates the FY 2026-27 financial projections for the General Fund and proposes current year budget adjustments for various City funds to reflect and respond to the City’s current financial condition, address urgent and unforeseen needs, and incorporate technical corrections.
On March 3rd, 2026, City Council adopted Resolution No. 16368 which included Midyear changes to the FY 2025-26 budget, some of which resulted in ongoing expenditure impacts to future budgets. Those impacts are incorporated in the FY 2026-27 Adjusted Baseline Budget.
This budget workshop provides the City Council and the community with an opportunity to discuss the factors that make up the overall City budget and consider proposals for changes in service levels and capital improvements.
During this workshop, staff will provide highlights of the Proposed Mid-Cycle Budget and answer questions on budget projections and departmental funding changes that are outside of the Adjusted Baseline Budget estimates. City Council may also provide direction to staff on funding changes to incorporate into the FY 2026-27 budget to be considered for adoption in June 2026.
The list of budget adjustments to the General Fund and other funds is attached as Exhibit 1 and the updated General Fund Budget Summary is attached as Exhibit 2. The Proposed Workforce Changes are attached as Exhibit 3.
DISCUSSION
The Proposed FY 2026-27 Mid-Cycle Budget provides the City Council with an update to the Adjusted Baseline Budget, which includes updated revenue projections for the General Fund and Special Revenue Funds as well as necessary expenditure adjustments. Additionally, the Proposed Midcycle Budget includes funding requests submitted by departments and funding changes recommended by the Interim City Manager in order to maintain existing services, control future obligations, and align spending with the City Council’s strategic priorities to:
1. Enhance Community Safety & Services
2. Build Resilience to Climate Change & Water Level Rise
3. Invest in Alameda’s Transportation, Infrastructure and Economy
4. House All Alamedans and End Homelessness
5. Practice Fiscally Responsible, Equitable and Inclusive Governance
This is the first Mid-Cycle Budget where the City put into effect the Budget Policy passed November 18, 2025 (Legistar file #2025-5488). Item 3 of the Budget Policy requires the City to do a Mid-Cycle Budget process wherein significant changes are minimized. All department requests were reviewed with this criterion in mind, and what is presented to the City Council are changes that support pre-existing budgeted programs and projects.
Since adoption of the FY 2025-27 Biennial Budget in June 2025, revenues have remained stable despite current economic uncertainties. The General Fund revenue budget adjustments in FY 2026-27 are projected to net increase by $3,664,210, of which $2,447,363 is for one-time revenue changes and $1,216,847 is for ongoing revenue changes. These changes reflect both technical corrections as well as one-time revenues due to investment choices the City has made.
On the expense side since adoption, the City had changes to incorporate, primarily related to employee Memorandum of Understanding (MOU) items, into its Adjusted Baseline as well as technical corrections to reflect recalibrations to its Internal Service Funds and cost allocations. These required changes represent a net increase of $2,820,527 in ongoing expenses to the Adjusted Baseline, or a 1.83% increase from the Adopted Biennial Budget for FY 2026-27.
The General Fund expense budget adjustments are a total increase in requested appropriations of $2,890,607, of which $717,363 are for one-time operational needs and the other $2,173,244 are for ongoing operational needs. Personnel changes account for $1,932,244 of ongoing costs and O&M changes account for $241,000. These recommended changes support existing programs to ensure the City can maintain its current services to residents.
Overall, General Fund revenues are expected to increase by 2.06% in FY 2026-27 from the June 2025 Biennial Budget forecast, while General Fund expenditures are expected to increase by 1.35% in FY 2026-27 above the Adjusted Budget. In total, staff project General Fund expenses to exceed revenues by approximately an additional $5.38 million at year-end with the City’s residual unassigned fund balance projected to be approximately $9.69 million at year-end of FY 2026-27.
It is important to note that the residual fund balance is separate from the City’s policy mandated General Fund reserves that totaled $37.17 million at June 30, 2025, and is available for use in the event of a catastrophic emergency.
I. General Fund Revenues
General Fund revenues in FY 2026-27 are projected to net increase by $3,664,210, to $154.15 million in total. Staff recommends the following changes to the General Fund revenue forecast:
A1-A5. Non-Department General Fund Revenue Update
Interest Income - Increase $1,080,000
Higher interest is anticipated due in part to City consolidating its accounts to lock in higher rates at the recommendation of the City Treasurer (Item C12 in General Fund Operating Expenses section). Ongoing interest is $80,000 while one-time is $1M.
Intergovernmental Revenue - Increase $1,000,000
Technical correction for Fire Department’s STRIKE grant.
Fines, Forfeitures, Penalties - Increase $35,000
Technical correction to Fire Department’s False Alarm Service program.
Miscellaneous Mid-Year Adjustments - Decrease $372,153
Technical corrections in other miscellaneous revenues.
Transfer In Adjustments - Increase $1,400,000
One-time revenue due to closure of Vacation ISF.
A6, A7. Fire Inspection Revenues $109,000 & Ambulance Fee revenues $365,000
For FY 2026-27, the Fire Department is adjusting its revenue allocations for these two items due to increased collection for Fire Inspections and to increased fee rates for Ambulance fees. This revenue will be used to cover the cost of an Office Assistant (Item C2 in Workforce Changes section).
A8, C20. Area Agency for Aging (AAA) Grant of $47,363 for Mastick Senior Center
Technical correction for the Alameda Recreation & Parks Department (ARPD) budget. This is an annual grant that ARPD receives from the County to support its programming at the Mastick Senior Center, but the grant amount varies from year to year.
II. Workforce Changes
The FY 2026-27 Biennial Budget includes funding for 515 allocated full-time positions, excluding the 91 full-time positions separately funded for Alameda Municipal Power (AMP). As Exhibit 1 and 3 show, staff is recommending the addition of six (6) new positions and the upgrade of eight (8) positions (including three (3) in AMP). Staff also recommends reclassing one position’s salary range, transferring allocations for one position, and reducing vacancy savings to support the hiring of four (4) Police Officers.
In total, these personnel changes account for $1,932,244 in ongoing costs and $300,000 in one-time costs. Below are detailed descriptions of the proposed changes, along with two summary tables.
New Position Requests
C1. Finance - Add Administrative Management Analyst - $197,770
Staff is requesting this additional staff as a Budget Analyst in Finance Department. In prior years, the City had at least two staff working on the budget. In the year that the Budget Manager has led this process, the workload has exceeded what one staff person can do. Adding an Administrative Management Analyst to work on the Budget process will support the City's expansion of financial analysis it has outlined in the new Budget Policy adopted in November 2025. Having an additional staff person would also provide coverage in the case that the Budget Manager is out as well as support the Finance Department in developing succession planning for this important role and City function.
Currently, more than 40% of Budget Manager’s time is expended doing clerical and administrative tasks that could be assigned to a Budget Analyst to handle. With this returned capacity, the Budget Manager can do overall Budget management work, including more in-depth fiscal analysis for the Executive Team and the City Council, meeting regularly with Department Directors to give them additional support for managing their operations, and planning out the next phases of each Budget’s process. With this additional staff, the Budget Team would have capacity to do both 5-Year Forecast Reports and a Long-Term Financial Plan as required by Budget Policy adopted November 2025.
C2. Fire - Add Office Assistant - $130,100
Staff is requesting this new staff position to address a gap created when the department’s Administrative Technician III was reassigned to Finance during City-wide payroll consolidation. The proposed Office Assistant will provide essential clerical and operational support, including data entry, managing correspondence, scheduling, report preparation, and general office duties such as filing, ordering supplies, and providing backup for EMS, Training, and Fire Prevention.
This position will strengthen administrative capacity, improve customer service, and ensure front desk continuity. Currently higher-level staff are doing this clerical work. With the addition of the Office Assistant, this would increase the department’s capacity and ability to apply for and manage grants. The Fire Department identified $474,000 in revenues that will cover the cost of this Office Assistant (see Items A6 & A7 in the General Fund Revenues section).
C3, C15. Human Resources (HR) - Add Safety Officer - $122,770
Staff is requesting this position because the City has lacked a dedicated safety program for over 5 years. The responsibilities and duties of a safety program have been distributed amongst several departments and one part-time HR staff member which no longer exists. The lack of a centralized, dedicated safety position creates exposure and liability for the City in reactive costs which will compound into future costs due to potential violations and litigation if safety issues are not uncovered or corrected.
Adding the Safety Office position enables the City to be proactive in addressing current and future issues, mitigate risk, liability and future costs, effectively consolidate all responsibilities, and provide support and resources to handle the volume of work produced. Staff has created a new job classification for this role and is offsetting the total cost of the position through reducing its outside agreement to Enviro Safetech by $75,000 (Item C15).
C8. Public Works - Add Division Manager - $251,800
Staff is requesting this position because Public Works is evolving toward an organizational structure of four Division Managers and a Deputy Director reporting to the Director. To ensure the long-term effectiveness of this model, the City will engage a consultant to evaluate the optimal organizational structure, staffing levels, and roles within Public Works. Findings from this effort will inform future staffing recommendations.
The proposed Public Works Division Manager will provide leadership over Environmental Services programs, including stormwater pollution prevention, the Zero Waste program, Special Districts administration, and the Urban Forest program. These programs involve regulatory compliance, interagency coordination, public engagement, and long-term planning. They also have important equity implications, as they directly affect neighborhood quality of life, public health, and access to City services. When the budget is approved, Public Works will work with Human Resources to establish the new job classification and salary schedule.
C11, C16, & C21. Recreation & Parks - Add Parks Maintenance Worker and O&M budget for Estuary Park - $154,000
With Estuary Park Phase 2 expected to open to the public in January 2027, staff is requesting a Park Maintenance Worker as well as operations and maintenance (O&M) budget to cover six months of operating costs to support the park’s initial launch and integration into the City’s current park system. Six months of the requested Park Maintenance Worker costs $64,000. Ongoing maintenance costs, such as for utilities and materials, total to $30,000. One-time equipment and supply purchase, such as for tools and a maintenance vehicle, total to $60,000.
Starting in FY 2027-28, Estuary Park’s ongoing General Fund costs would increase to $198,000 ($128,000 for personnel and $60,000 for O&M).
Currently, ARPD has seven Park Maintenance workers who maintain 11 acres each. With the addition of Seaplane Lagoon Promenade, Whale Park, and Bohol Circle Park, totaling 10.5 acres, part time hours were previously added to the operational budget in place of a full-time position request. The new parks added additional challenges for maintenance staff due to the complexity of amenities. Opening Estuary Park Phase 2 adds another 5.5 acres of active park space with a large number of amenities requiring maintenance. An additional Park Maintenance Worker will enable the department to properly maintain its current service levels at this park as well as across all parks. A well-maintained park enhances public safety and accessibility, ensuring a clean, hazard-free environment for visitors.
D16. Public Works - Add Parking Technician - $123,000
Staff is requesting an additional Parking Technician to support expanded parking enforcement demands associated with newly implemented paid parking at the Harbor Bay and Seaplane Lagoon Ferry Terminals, as well as the improved Civic Center Parking Garage. Currently, Public Works has two Parking Technicians to provide Citywide enforcement coverage.
The additional technician will allow the Department to align parking enforcement staffing with the City’s three-zone street sweeping model by assigning one dedicated enforcement staff member to each zone. This will improve street sweeping effectiveness, ensure consistent enforcement coverage, and support compliance with parking regulations, particularly in high-demand areas such as the ferry terminals. The position is expected to be revenue-supporting and will be funded through the Parking Fund, with no impact to the General Fund. The department anticipates $378,000 in increased revenues from the ferry terminals next year.
Combined, these six additional staff will increase the City’s FTE from 515 to 521 as Table 1 shows.
Table 1
|
Department |
FY 2026-27 Authorized |
FY 2026-27 Proposed |
Change |
|
City Attorney |
25.0 |
25.0 |
- |
|
City Clerk |
4.0 |
4.0 |
- |
|
City Manager |
11.0 |
11.0 |
- |
|
Base Reuse and Economic Development |
12.0 |
12.0 |
- |
|
Finance |
17.0 |
18.0 |
+1.0 |
|
Fire |
121.0 |
122.0 |
+1.0 |
|
Human Resources |
10.0 |
11.0 |
+1.0 |
|
Information Technology |
12.0 |
12.0 |
- |
|
Library |
24.0 |
24.0 |
- |
|
Planning, Building & Transportation |
33.0 |
33.0 |
- |
|
Police |
125.0 |
125.0 |
- |
|
Public Works |
86.0 |
88.0 |
+2.0 |
|
Recreation & Parks |
35.0 |
36.0 |
+1.0 |
|
Total |
515.0 |
521.0 |
+6.0 |
Position Upgrades
C9, C10. Recreation & Parks - Upgrade Office Assistant to Executive Assistant - ($15,345)
Staff is requesting this position upgrade to better reflect the duties currently being performed, which now include high-level administrative support to department leadership. This request is net neutral to the General Fund. The Part-time budget is being reduced from Divisions 400 and 450 in the total amount of $30,000 ($15,000 from each division) to offset this position upgrade of $14,655.
D3. Planning, Building, and Transportation (PBT) - Upgrade Combination Inspector II to Plans Examiner - $6,132
Staff is requesting this position upgrade to have in-house capacity to review plans submitted to the City. Currently, the department is relying on a contract examiner and paying a total of $80,000 per year for their work. This upgrade would increase department’s internal efficiency with processing plans at a much lesser cost than outsourcing it. If approved, PBT would reduce reliance on the contract examiner. The cost will be from Fund 209 with no impact to the General Fund.
D4. PBT - Upgrade Building Official to Assistant Director - $36,328
Staff is requesting this position upgrade because it better aligns responsibilities with departmental needs, strengthens succession planning, and provides a viable advancement opportunity that supports retention of highly qualified and experienced staff. The cost will be 100% absorbed by Fund 209, with no impact to the General Fund.
D5. Library - Upgrade Library Assistant to Librarian I - $0
Staff is requesting this position upgrade to address a gap in program delivery, specifically to manage the Library’s book and media collections. This is a $22,000 annual increase and the department identified reductions in its O&M to offset this personnel change. Totals to net $0 cost.
D24. Information Technology (IT) - Upgrade IT Systems Analyst to IT Manager - $40,512
Staff is requesting this position upgrade because of the IT department’s new internal structure with the creation of the Governance, Risk & Strategy Division which is primarily responsible for responding to the City’s increased need for cybersecurity. This new division’s work is proactive in nature and requires a Manager role to effectively lead the team in protecting the City from cyber-attacks, train City staff to maximize utilization of City’s existing software, and also create City-wide efficiencies. Since this position upgrade is happening in the IT Internal Service Fund, roughly 75% of its increase will be re-distributed to General Fund through cost allocations.
In addition to these department upgrades, AMP requested three upgrades. More details on AMP’s upgrades can be found in Exhibit 3. Table 2 below shows all upgrades.
Table 2
|
Dept |
Request |
+/- FTE |
Annual Cost |
Funding Source |
|
AMP |
Upgrade one Senior Clerk to one Administrative Services Coordinator Upgrade two Utility Billing Technicians to two Utility Billing Specialist |
- |
N/A |
AMP |
|
IT |
Upgrade one IT Systems Analyst to IT Manager |
- |
$40,512 ($30,000 General Fund Impact) |
IT Fund |
|
Library |
Upgrade one Library Assistant to one Librarian I |
- |
$0 |
Library Fund |
|
PBT |
Upgrade one Combination Inspector II to Plans Examiner Upgrade one Building Official to one Assistant Director |
- |
$42,460 |
PBT Fund |
|
Rec & Park |
Upgrade one Office Assistant to one Executive Assistant |
- |
($15,345) |
General Fund |
Other Personnel Changes
C4. PBT - Reclassify salary range for Sustainability Manager - $36,000
Staff is requesting this reclassification of salary range to ensure parity between this role and other Manager positions in the department that have higher salary ranges as well as address compaction with the salary range of a position this Manager supervises.
C5, D11. PBT - Transfer 0.3 FTE of Senior Management Analyst to General Fund - $70,149
Staff is requesting this 30% FTE transfer of the Senior Management Analyst to align fully with the Sustainability and Resilience Division’s staffing structure to within the General Fund. This role had 30% of its allocation temporarily assigned to Transportation funding to complete active projects that have now progressed to a point where they can be transferred to Public Works.
D7. Public Works - Reclassify salary range for Traffic Signal Technician - $15,000
Staff is requesting this reclassification of salary range to ensure parity between this role and other technician positions in the department that have higher salary ranges.
C6. Police - Hire 4 Police Officers - $980,000 ongoing cost and $300,000 one-time cost
Staff is requesting this funding to bring the department’s total number of budgeted police officers from 72 to 76 FTEs. The department will prioritize staffing up its Patrol unit so response times should quicken with the additional staff, providing a timelier response from those impacted by crime. The next priority is to staff up its Investigations unit with these additional hires. This will reduce the City’s vacancy savings which offsets the General Fund structural imbalance. The $300,000 in one-time costs covers the $75,000 signing bonus per hire.
C7. Police - Increase OverTime Budget - $20,000
Staff is requesting this funding to provide more coverage for Crime Scene Technicians on the weekends. Doing so will allow for 7-day-per-week coverage of forensic evidence collection by trained employees.
III. General Fund Operating Expenses
The following General Fund expense budget adjustments total an increase in requested appropriations of $658,363, of which $417,363 are for one-time operational needs and the other $241,000 are for ongoing operational needs.
C12, D1. Rent Program - Housing Choice Voucher Unit Fee Waiver - $40,000
City Council has historically directed the Rent Program to waive annual fees for rental units that are participating in Housing Choice Voucher program (Section 8), most recently affirming the policy with the adoption of Resolution 16382 on April 7, 2026. The purpose of this policy is to encourage property owners to participate in such programs, which help to house low-income residents and are an essential part of meeting the City's Fair Housing goals. Currently there are 725 registered rent-subsidized units. Staff is able to offset the fee waiver for a portion of these units through approximately $40,000 in late penalties and administrative fines, but will likely need up to an additional $40,000 to cover the remainder of fees that are waived. If fine collections for FY 2026-27 exceed or fall below estimates, staff may further seek necessary FY 2026-27 Mid-Year adjustments.
C13. City Manager’s Office Housing & Human Services Division - Library Social Work Services - $155,000
This program is currently in a pilot phase funded only through June 30, 2026 and provides social work services at the library to support individuals with mental health needs, social service needs, and those who may be in crisis.
Providing free and available social work services at the library expands access to mental health services and resource connections for people in Alameda who are unhoused and/or low-income and may not otherwise have access to these services. It advances equity by meeting people where they are, reducing barriers to essential services such as housing support, mental health care, and navigating public benefits. This approach recognizes that access to information through online searches and pamphlets is not enough. Due to both personal and systemic challenges, many residents require personalized, compassionate support. This program also ensures services are accessible across the island. The majority of homeless services are located on the west end of the City. The library provides a centralized location easily accessible by public transportation that is a universally accessible community space. This service addition allows the library to effectively serve patrons with varying needs.
In January, the City’s social worker contracted through Alameda Family Services began fully engaging and supporting patrons and library staff with immediate and long-term needs. During this time, she worked to build rapport and trust with patrons that frequent the library, many of whom have significant mental health, substance use disorder, and housing issues. After just one quarter of library services, the social worker has had 107 therapeutic interventions with 78 service connections. There have been four safety interventions in three months, 39 clinical sessions, with six ongoing clinical clients. In addition, staff applied for a new revenue source: MediCal Administrative Activities (MAA). This is a new federal funding stream that is anticipated to offset the cost for Housing & Human Services (HHS) work to support people who are unhoused or at risk of becoming unhoused. HHS anticipates receiving its first MAA reimbursement in the last quarter of FY 2026-27.
C14, A1. Finance - Investment Management Fees - $80,000
The City Treasurer recommended consolidating the City’s funds with their existing external investment partners to lock in favorable rates ahead of anticipated interest rate declines driven by economic uncertainty. The proposed budget adjustment reflects the associated increase in management fees resulting from this prudent financial strategy and will lead to higher one-time interest revenue in the next few years.
C17. Various Departments - Miscellaneous Budget Adjustments- $11,000
Miscellaneous budget adjustments for PBT’s Sustainability Division’s Professional Services and office supplies funds and HR’s Professional Development Funds.
C18, D25. Fire - Portable Radios Replacement - $100,000
This request supports one-time costs of replacing 50% of the department’s radios that are at their end of life, prioritizing frontline and ready-reserve radios for emergency response. This totals to $350,000, however, it is offset by $250,000 transfer in from Fund 616 Capital Equipment Fund.
C19, D18. Public Works - Wooden Bridge - $110,000
This one-time request provides funding to assess and design necessary repairs to the pedestrian and bicyclist Wooden Bridge located near Veteran’s Court under the Bay Farm Bridge. This bridge is a critical Safe Route to School that is in significant need of repair and is used by over 900 people daily. The assessment will identify and prioritize near-term repairs needed to extend the useful life of the bridge by approximately 10 years, allowing continued public use while the City advances a longer-term planning effort for its eventual replacement. This CIP project requires a transfer from the General Fund.
C22. Recreation & Parks - Sweeney Trail Connector soil contamination costs - $100,000
This one-time request supports already expended project costs due to a greater level of contaminated soil than originally anticipated at Sweeney Park, requiring additional removal and disposal, as well as the import of clean fill material to meet regulatory requirements. The work has been done to keep the project moving forward for trail connectors at 8th Street and Wood Street on the south side of Jean Sweeney Park.
IV. Non-General Fund Programs
In addition to the General Fund amendments discussed above, the following adjustments are proposed for programs outside of the General Fund. These adjustments are included in the list of budget adjustments presented on Exhibit 1.
D1. Fund 207 Rent Stabilization - Rent Stabilization Fund Revenue Increase & Housing Choice Voucher Unit Fee Waiver
Updated estimates for FY 2026-27 Rent Stabilization Fund processing fees, rent review fees, and other fines/forfeitures/penalties. Totals to $284,000.
Transfer from General Fund to Rent Stabilization Fund to pay Annual Program Fee costs for Housing Choice Voucher (Section 8) units or programs to encourage property owners to participate in such programs which help to house low-income residents. Totals to $40,000.
D2. Fund 209 PBT - Accela Permit System Audit & Optimization
Proposes using $59,461 in reimbursement funds received from the California Energy Commission for prior solar permit system upgrades plus $15,539 from Fund 209’s fund balance to fund an audit and optimization of the Accela Permit System. Over a 23-year span of use, the system has been optimized just twice, the last time in 2014. Optimization will improve staff efficiency, speed permit processing, and enhance customer service. Totals to a $75,000 one-time expense but results in no net cost.
D6. Fund 210 Library - Mayes Trust Donation
The Library received an unexpected donation from the Mayes Trust. Only the expense side is shown because the funds were received in the current fiscal year 2025-26. Library requests City Council accept the donation and increased expense. Total cost is $7,101.
D8. Fund 220 Adjustment to SHSGP Grant Funding
Revenue adjustment to align the budget with a previously awarded grant and the correct grant performance periods and available funding. Totals to ($2,500).
D9. Fund 221 Police Grants - Community Oriented Policing Services (COPS) Grant
Police Department requests City Council authority to true up its COPS grant budget to approximately $120,000, which is the average of what the City is typically awarded year-to-year. The City receives this ongoing grant and utilizes it to pay for equipment and training. Totals to net $0.
D10. Fund 221 Police Grants - Mandated Costs SB 90
Police Department requests City Council authority to receive SB 90 Mandated Costs reimbursement funds, estimated in the amount of $45,000. Totals to net $0.
D12. Fund 261 Waste Management - Multi-Family Bulky Program CBSM Campaign
This proposal appropriates new expenditure budget within Fund 261. This funding does two things: 1) moves existing program costs in Fund 262 to Fund 261 to free up Fund 262 Funds to implement the priority illegal dumping enforcement program in the Zero Waste Implementation Plan Program (ZWIP); and 2) supports the launch of a Multi-Family Bulky Program Community Based Social Media (CBSM) Campaign, also a priority program in the new ZWIP. Bulky Waste pick-up services are particularly underutilized by Multi-Family Housing properties that are often in socially vulnerable neighborhoods. Totals to $297,000.
D13. Fund 261 Waste Management - Compost Procurement
As part of the City's SB 1383 compost procurement requirement, compost is provided free to the community at local community compost hubs on the island. Ploughshares Nursery and Maker Farm are two compost hubs that lower the cost of growing food and promote healthy outdoor activities for all sectors of the community, including those on a low income. While this service was previously grant funded, no future grant funding exists. Because SB 1383 compliance remains mandatory, this proposal increases the expenditure budget within Fund 261 to support continued compost procurement. Totals to $44,000.
D14. Fund 262 Integrated Waste - New Zero Waste Implementation Plan Programs Within Measure D
As part of the commitment the City made to supporting socially vulnerable communities through the recently adopted Zero Waste Implementation Plan, this proposal appropriates available Measure D fund balance to support one-time costs associated with two priority pilot programs: an education and resource programs for low-income communities ($50,000) and a cash-for-trash program serving the unsheltered community ($125,000). Totals to $175,000.
D15. Fund 264 Stormwater - Storm Aquatic Pesticide Permit Fee
Requests City Council authorization for funds for a new required annual State Water Board Permit Fee related to the City’s shoreline invasive Spartina control program. This is a long-standing program the City implements in coordination with the State Coastal Conservancy program. Totals to $3,630.
D16. Fund 265 Parking & D.16 Fund 281 Alameda Point - Parking Revenue and Associated Baseline Adjustments
This proposal reduces projected revenue from public EV charging at City-owned facilities and reduces the corresponding electricity expense budget; and increases parking citation revenue for paid parking at the Seaplane Lagoon and Harbor Bay Ferry Terminals. Combined with the added Parking Technician, these proposals total to a $274,800 surplus for Fund 265 and a $3,999 cost to Fund 281.
D17. Fund 310 Capital Improvement Projects - City Fleet Electric Vehicle Charging Infrastructure & Fund 601 - Fleet Replacement Budget: Electric Vehicle Costs
This investment is driven by both regulatory requirements and City policy requiring greenhouse gas reduction and the transition to electric City fleet vehicles where feasible. To comply with these mandates, the City must continue establishing the necessary charging infrastructure in parallel with vehicle procurement. Providing adequate charging infrastructure is essential to implementing these policies and ensuring that electric vehicle (EV) fleet assets can be reliably operated. This investment addresses near term fleet electrification and while the Fleet Fund can support this, it is not expected to fully fund the complete buildout of charging infrastructure required to meet long-term electrification goals. Upon completion of a comprehensive plan, staff will evaluate and pursue additional funding sources, This also requests an increase to the Fleet Fund expenditure budget for vehicle replacements to account for increased vehicle inflation, higher upfront costs associated with transitioning to EVs, and a re-appropriation of funds for deferred replacements. Totals to $150,000 for charging infrastructure and $1,110,500 for EVs. This includes a $600,000 electric street sweeping vehicle.
D20. Fund 601 Fleet Maintenance & Replacement - Fleet Maintenance Parts
This proposal increases the expenditure budget for Fleet Maintenance Services, specifically for automotive parts and fuel. Historically, expenditures for parts have exceeded the allocated budget. Fuel expenditures are expected to be higher due to rising prices driven by geopolitical factors. Totals to $240,000.
D21. Fund 606 Information Technology - Cable and Internet Funding
The amount of budget allocated for landline phones, modems, cable, and internet needs to be increased. Totals to $251,500.
D22. Fund 606 Information Technology - Data Security Posture Management / Data Loss Prevention (DSPM/DLP) tool
Tool to manage a Data Governance Program providing visibility on how City staff data is being used and where it is going. Would decrease security risk to the City. Totals to $120,000.
D23. Fund 606 Information Technology - Penetration Testing
Annual test to help secure City’s IT systems against cyberattacks. Totals to $25,000.
ALTERNATIVES
• Authorize the budget adjustments proposed in the staff report.
• City Council may take no action, in which case the previously adopted FY 2026-27 Biennial budget would remain in effect.
• City Council may provide further direction on these proposed budget adjustments.
FINANCIAL IMPACT
The proposed FY 2026-27 budget adjustments will increase the General Fund revenue projection by $1,216,847 in ongoing funds and increase by $2,447,363 in one-time funds to $154.15 million in total. The proposed expense adjustments include $2,900,607 in additional expenses, of which $717,363 are for one-time operational needs and the other $2,173,244 are for ongoing operational needs, including $1,932,244 in additional personnel costs. With the one-time use of fund balance of $9,016,739 previously approved by City Council, the total General Fund expenses are $159,530,981. In total, staff project General Fund expenses to exceed revenues by approximately an additional $5.38 million at year-end.
The unaudited General Fund residual unassigned fund balance at the end of FY 2024-25 was $13.4 million. With the General Fund’s proposed FY 2026-27 Mid-Cycle operating expense budget of $159.53 million and projected revenues of $154.15 million, the General Fund residual unassigned fund balance is projected to be approximately $9.69 million by year-end of FY 2026-27.
The net impact of the proposed adjustments on all other funds will be an increase in the revenue projection by $822,501 excluding transfers in, and an additional $3,087,807 in expenditure authority, excluding interfund transfers.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is in conformance with the Alameda Municipal Code and all policy documents.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
There are no climate impacts associated with this action; implementation of the Climate Action and Resiliency Plan continues to move ahead with available funding.
RECOMMENDATION
Receive Fiscal Year 2026-27 proposed mid-cycle budget update to provide direction on funding changes that will be incorporated into midcycle budget adoption materials for City Council consideration on June 2, 2026
Respectfully submitted,
Ross McCarthy, Finance Director
By,
Ecaterina Burton, Budget Manager
Exhibits:
1. FY 2026-27 Mid-Cycle Budget Adjustments
2. General Fund Budget Summary
3. Recommended Workforce Changes