General Fund Expenditure Overview The City’s General Fund expenditure budget is developed using a comprehensive and disciplined approach that aligns available resources with service priorities, long-term financial sustainability, and operational efficiency. Expenditures are evaluated through major object classes, including salaries and benefits, services and supplies, and capital outlay, providing a clear and consistent framework for financial planning, reporting, and decision-making. This structure allows the City to monitor expenditure trends, evaluate service delivery needs, and ensure that budgeted resources are aligned with City Council priorities and community expectations. For FY 2026-27, expenditure growth reflects a combination of personnel cost increases, inflationary pressure, contractual obligations, and the ongoing cost of maintaining current service levels. Personnel and Related Expenditures Personnel Services remain the largest component of the General Fund operating budget and are projected to increase by approximately $3.17 million, or 9.2 percent, over the prior year. This increase is primarily driven by negotiated cost-of-living adjustments ranging from 3 percent to 5 percent, merit-based increases, increased benefit costs, and the addition of five new positions needed to sustain service levels. Full-time salary costs are projected to increase by 9.2 percent to $37.41 million, while part-time salary costs are increasing by 31.5 percent, primarily within Parks and Recreation, reflecting the City’s continued use of flexible staffing models to support seasonal programming and specialized operational needs. Employee benefits also remain a significant component of the City’s total compensation structure. Health and liability insurance costs are projected to increase by 7.5 percent, reflecting continued regional inflationary pressure in the healthcare and insurance markets. Medicare contributions are also increasing by 8.8 percent, consistent with overall payroll growth. These cost pressures reflect broader statewide and regional labor market conditions, as well as the City’s continued need to maintain competitive compensation and benefits in order to attract and retain qualified employees in a challenging California municipal labor market. The chart below reflects the full-time equivalent (FTE) growth in personnel. The Police Department’s staffing percentage (sworn and non-sworn staff) has remained a consistent 49% of the citywide authorized personnel
Over the same period, the City’s benefited workforce increased from 325.5 FTE to 338.5 FTE in FY 2026–27, a net increase of 13 FTE, or approximately 4%. This gradual citywide growth reflects the addition of staffing needed to respond to increasing service demands, support expanding programs and responsibilities, and maintain the level and quality of services provided to
29|Page
Made with FlippingBook - professional solution for displaying marketing and sales documents online