Alameda City Council Budget Workshop for FY 2025-27 – May 5, 2025

The City of Alameda held a special city council meeting on Monday, May 5, 2025, beginning at 6:00 PM, to workshop the biennial budget for fiscal years 2025-26 and 2026-27. Staff presented a proposed budget that uses $6.5 million in residual fund balance in FY26 and $2.9 million in FY27 to close gaps, maintaining a $9.5 million residual balance above the 25% emergency reserve. Council discussed revenue and expenditure trends, department requests, and gave preliminary direction on key priorities including police staffing, a victim advocate, and library safety.

Consent Calendar

• No consent calendar items were on the agenda.

Public Comments & Testimony

• Ruth Abbey (Community Action for Sustainable Alameda) expressed support for investing in a junior staff position to replace the Civic Spark fellow, noting the fellowship was defunded by the federal administration. She urged council to support climate resilience staffing as a strategic priority.
• Karen Butter (President, Friends of the Alameda Free Library) spoke in support of the library’s budget request, highlighting safety concerns and the need for additional staff to maintain services. She also invited the public to the upcoming used book sale (May 14–17).
• Charles Linson (Alameda Pickleball) noted over 1,000 people on the mailing list and requested continued investment in pickleball courts, noting only one lighted public court currently exists.

Discussion Items

• Budget Overview & Approach: City Manager Jennifer Ott and Acting Finance Director Ross McCarthy presented a stretched budget due to lower revenue projections, loss of a major sales tax generator, and absorption of programs previously funded by one-time grants. Operating revenues are projected to cover 97% of operating expenditures. Staff recommended using $6.5M (FY26) and $2.9M (FY27) of residual fund balance, ending with $9.5M residual. The 25% reserve ($37.5M) is protected.
• Revenue & Expenditure Trends: Property tax growth is slowing (3-4% projected), sales tax is recovering, and transfer tax remains volatile. Federal grants total $30M, with $6.3M identified as high risk. Staff found balancing options including recouping property taxes, using excess pension fund balances, prepaying pension liabilities, and slowing police hiring.
• Police Staffing: The current budget proposes a goal of 47 police officers (out of an authorized 70 sworn total) by September 1, 2025. Chief Joshi explained that attrition rates make it difficult to maintain even that number, and that field training takes 19 weeks. Council discussed increasing the goal to 49 (72 total) or 51 (74 total) at additional cost ($615K in FY26, $472K in FY27 per two officers). The city manager noted adding two officers would reduce residual fund balance to about $8.4M; adding four would reduce it to $7.3M.
• Library Budget: Director Mike Eitner proposed realigning hours (net +1 hour systemwide), hiring security guards (year one), adding a social worker (year two), converting part-time to full-time staff, and other safety measures. Council members expressed varying views: Mayor supported a pilot contract social worker rather than a permanent hire; Vice Mayor favored social worker over security guard; Councilmember Jensen suggested potentially merging the HHS case manager role with library services. The security guard proposal faced opposition.
• Victim Advocate: Julia Gonzalez (Prosecution Unit) requested funding for a victim advocate position (not recommended in staff budget). Councilmembers Jensen, Vice Mayor Pryor, and Mayor expressed strong support, citing needs for domestic violence and immigrant community support. Initial cost is roughly $150K for two part-time positions; adding two officers plus victim advocate would lower residual balance to about $8M.
• Department Presentations: Other departments (Fire, Public Works, Recreation & Parks, Planning/Building/Transportation, City Attorney/Rent Program, Finance, Base Reuse, City Manager’s Office, Human Resources, IT, City Clerk) presented their budget proposals and workforce requests. Most general fund new FTE requests were not recommended except where offset by savings or revenue.

Key Outcomes

• Continuance: Council voted unanimously (5-0) to continue the budget workshop to the May 13, 2025 meeting (6:00 PM) for further discussion and to allow staff to refine proposals based on direction.
• Direction to Staff:
  • Explore funding for 72–74 police officers (2–4 additional hires) and analyze potential offsetting revenue from Community Facilities Districts (CFDs) at Alameda Point and Alameda Landing.
  • Develop a plan to fund a victim advocate position, potentially as two part-time roles to save benefits, and evaluate grant opportunities.
  • Revisit the library social worker proposal as a contract (pilot) rather than permanent FTE, and consider consolidating with HHS case management.
  • The security guard for the library was not supported; instead, the social worker was preferred.
  • Defer the new HHS program specialist position to year two pending a more detailed implementation plan.
  • Staff will bring back financial scenarios for these options at the May 13 meeting.
• Guiding Principle: Council emphasized using residual fund balance prudently, with several members expressing caution about reducing it below $8 million given economic uncertainty. The budget aims to maintain current service levels without across-the-board cuts.