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The San Ramon City Council is set to receive and provide input on a presentation about the city’s expenses as part of the planning and public feedback process in developing the budget for the next fiscal year.
The city’s budgeting goals are centered on ongoing efforts to address a structural deficit that came to head in 2024.
Addressing the deficit and seeking to balance the city’s budget during the 10-year course of the sales tax increase that was passed by voters in 2024 have been top of mind for city staff developing spending estimates for the year ahead and participating in the ongoing budget process, according to a staff report from Jennifer Wakeman, the city’s first-ever finance director who was hired early last year.
According to guidelines established by the council last fall, that means “no new programs or positions without a trade-off,” “no spending money that we don’t have,” and “no unsustainable commitments.”
On a technical level, the city is seeking to keep its spending in the coming years at least 2% below its increase in revenues overall, with a goal of keeping expenditure growth at 2.3% communicated to the city’s departments.
While the final numbers remain to be seen, city staff estimates that the upcoming fiscal year will see a 2.61% increase in expenses from the general fund, which is the city’s primary operational fund where a majority of its expenses come from. That includes the city’s top spending areas – police, public works and parks and community services – which account for more than two thirds of general fund expenditures.
The projected $76.83 million operating budget for the coming fiscal year accounts for increased spending on administration, finance, police and parks and community services expenses ranging from 4% to 25%, as well as a 13.83% decrease in human resources spending and a 0.35% decrease in community development spending.
Some notable increases in projected costs in administrative services include a $206,000 estimated price tag for cybersecurity and systems upgrades, $48,000 for training and professional development, and $68,000 for the implementation of a citizen request management system. In the finance department, contract services for an accounting program manager are estimated at $65,000, plus $18,000 for financial modeling and fiscal sustainability consulting services.
The police budget is set to see a 13% increase in costs for animal control services with the county, a 4.5% increase in costs for dispatch services with SRVFPD, and a 48% increase in costs for a contract renewal with AXON Camera, which provides body cameras and interview room cameras.
A majority of the 24% increase in spending for the public works department is accounted for in part by a 9% increase in water and electricity costs, salary adjustments for wage compaction and a minimum wage increase for part-time recreation staff as well as increased park and trail maintenance costs for newly developed areas.
However, the major increase in that area is due to a $1.8 million accounting change that moves instructor payments to expense accounts starting in the next fiscal year.
Despite the increased expenses, general fund revenue is expected to grow by approximately 1.9%, thanks to sales tax revenue from Measure N that is set to exceed previous projections by $1.49 million in the next fiscal year.
In addition to the general fund, staffers from the city’s finance department are set to provide insight on anticipated expenditures from other funds, including the capital improvement fund and the Dougherty Valley County Revenue Fund.
City staff will incorporate feedback from the upcoming workshop into their final budget proposal, which is set to be presented to the council on May 12.
The San Ramon City Council is set to meet at 7 p.m. Tuesday. The agenda is available here.
In other business
*The council is set to hear a presentation on recommendations for informational events on housing and transportation.
*The Library Advisory Committee is set to provide its annual report.
*SRVFPD Chief Jonas Aguiar is set to provide a presentation on the district.
