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Discuss and receive a presentation on the Fiscal Year 2026-27 Budget Update, including fiscal outlook, revenue considerations, strategic investment areas, and ongoing budget development topics.
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REQUESTOR:
Finance Department
BACKGROUND:
The annual budget process serves as the City's primary financial and policy planning tool, ensuring that available resources are intentionally aligned with City Council strategic priorities, including infrastructure reinvestment, neighborhood stability, mobility, economic vitality, public safety, and maintaining a high-performing organization.
At the April 21, 2026, Study Session meeting, staff kicked off the Fiscal Year (FY) 2026-27 budget process by providing an overview of the City's budget process, information on the strategic focus areas of the City, and the budget cycle timeline.
At the May 5, 2026, Study Session meeting, staff continued budget discussions by providing additional information regarding the City's budget structure, revenue outlook, and infrastructure funding needs. Staff updated Council on the status of departmental budget submissions and internal administrative review efforts, while also discussing preliminary FY 2026-27 operational priorities.
At the June 2, 2026, Study Session meeting, staff continued budget discussions by providing updates regarding current revenue and expenditure conditions, utility infrastructure funding needs, community-centered programs, grants, and strategic investment considerations. Additional discussion included changes to Business Personal Property exemptions, appraisal district protest activity, sales tax volatility, NTECC cost increases, healthcare cost considerations, and utility infrastructure investments.
This study session continues the phased budget development approach by focusing on employee compensation, fee adjustments, and other operational funding considerations currently being evaluated as part of the development of the proposed FY 2026-27 budg...
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