Title
Adoption of Resolution Approving and Adopting Midcycle Operating Budget Amendment for the Rent Program to the City of Alameda Budget for Fiscal Year 2026-27. [City Council] (Finance 10024051)
Body
To: Honorable Mayor and Members of the City Council
From: Adam W. Politzer, Interim City Manager
EXECUTIVE SUMMARY
The Citywide budget outlines the City of Alameda’s (City) fiscal plan for the upcoming fiscal year, as well as the level and type of services to be provided. On June 17, 2025, City Council adopted the Biennial Budget for Fiscal Years (FY) 2025-27. After the first year of the budget cycle, staff bring updates for the second year to City Council for approval (Midcycle Update). As part of the Midcycle Update, City Council held a Budget Workshop on May 5, 2026, during which departmental requests and funding updates previously not included in the Biennial Budget were discussed and direction was given by City Council for inclusion in the FY 2026-27 Midcycle Update, including the budget amendment for the Rent Program. Staff recommends City Council adopt the attached resolution amending the FY 2026-27 Operating Budget for the Rent Program.
BACKGROUND
City Council waived the Rent Program’s 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 $40,000 in late penalties and administrative fines staff collects. Through the FY 2026-27 Midcycle Budget process, Rent Program staff submitted a budget amendment of $40,000 ongoing General Fund support to cover the remainder of fees that are waived.
On May 5, 2026, City Council held a budget workshop regarding the Interim City Manager’s proposed midcycle budget amendments for the FY 2026-27 Operating and Capital Budgets, including a budget amendment for the Rent Program. The workshop was intended to give City Council and the community an opportunity to review the factors that make up the overall City budget. During the workshop, City Council and the community provided input to staff on the allocation of funding beyond the baseline budget. At the conclusion of the workshop, City Council accepted the budget amendment for the Rent Program.
DISCUSSION
The Midcycle Budget intends to meet City Council’s Strategic Priorities for the upcoming fiscal year. At the May 5, 2026 City Council budget workshop, City Council indicated support for the Rent Program’s proposed FY 2026-27 midcycle budget adjustment as recommended by the City Manager.
ALTERNATIVES
• Approve and adopt the Rent Program’s budget change as proposed in the staff report.
• Approve and adopt the proposed Rent Program budget change with any amendments made during tonight’s City Council meeting.
FINANCIAL IMPACT
Staff recommend adoption of this midcycle budget amendment of $40,000 Fee Waiver ongoing General Fund subsidy to the Rent Program’s FY 2026-27 Operating Budget.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is in conformance with the Alameda Municipal Code and all policy documents.
Adopting this resolution is in alignment with the City’s FY 2023-26 Strategic Plan under the priority to Practice Fiscally Responsible, Equitable and Inclusive Governance.
ENVIRONMENTAL REVIEW
This activity is not a project and is exempt from the California Environmental Quality Act (CEQA) pursuant to section 15378(b)(4) of the CEQA guidelines, because it involves governmental fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.
CLIMATE IMPACT
There are no climate impacts associated with this action. City Council may provide direction to staff on funding priorities for implementation of the Climate Action and Resiliency Plan as part of the budget workshops.
RECOMMENDATION
Adopt a Resolution approving and adopting Midcycle Operating Budget amendment for the Rent Program to the City of Alameda budget for fiscal year 2026-27.
Respectfully submitted,
Ross McCarthy, Finance Director
Prepared By,
Ecaterina Burton, Budget Manager