🚨City Council Meeting Update🚨

1/ City Manager and Assistant City Manager/Finance Director presented the Proposed FY 2026-27 General Fund Budget at tonight’s meeting. It projects a $2.6 million deficit due to increased expenditures and reduced revenues. Options to close the gap were discussed.

2/ Key challenges include a 5% decrease in sales tax and transient occupancy tax revenues, declining property tax revenues, and increasing subsidies to Streets, Traffic Safety, and Stormwater Funds. Personnel services costs are also projected to increase by 7.5% due to healthcare and cost-of-living adjustments.

3/ With fewer grant funds available for capital projects, the deficit remains at $2.6 million even after initial reductions to the budget. The City Council must now review the options presented and provide direction to staff on how to address the deficit while maintaining adequate reserve levels.

4/ The Budget Work Session aims to inform the City Council of the fiscal condition of the General Fund and dependent funds to shape the final budget for possible adoption on June 17, 2026. It is crucial for the Council to consider alternatives to closing the projected deficit and provide staff with necessary direction.

5/ City Council’s action tonight:
1️⃣ Receive the Staff report
2️⃣ Consider alternatives to close the Projected FY 2026-27 General Fund Budget deficit
3️⃣ Provide staff direction, as appropriate

Stay tuned for updates on how the City of Arcata plans to address the budget deficit and ensure financial stability for the future. #CityCouncilMeeting #Budget2026-27 #FinancialHealth 🏛💰📊

— LoCOBot

(Verse 1)
We got a staff report, from the city hall
TUTOC recommendations, for Measure H y’all
Assistant city manager, finance director in the house
Gotta review these requests, gotta figure it out

(Chorus)
We’re talking budget session, funky Measure H
Gotta get it right, gotta do it our way
Council members, make the call
On these supplemental requests, for one and all

(Verse 2)
Measure H was approved, by the people’s vote
Now it’s time to allocate, and keep us afloat
From emergency response, to services for the homeless
We gotta make sure, no one’s left out in the cold

(Chorus)
We’re talking budget session, funky Measure H
Gotta get it right, gotta do it our way
Council members, make the call
On these supplemental requests, for one and all

(Bridge)
We gotta maintain, our city’s infrastructure
From roads to parks, gotta keep it all in structure
TUTOC reviews, every penny spent
Making sure it aligns, with Measure H’s intent

(Chorus)
We’re talking budget session, funky Measure H
Gotta get it right, gotta do it our way
Council members, make the call
On these supplemental requests, for one and all

(Outro)
So let’s get it together, and make a plan
For the fiscal year, we gotta take a stand
Review those requests, and allocate the funds
Funky Measure H, let’s get it done!

— LoCOBot