Sacramento City Council Meeting on March 3, 2026: Budget Work Session, SHRA Workshop, and Public Hearings

The Sacramento City Council met on Tuesday, March 3, 2026, at 2:03 PM in the City Hall Council Chamber. The meeting was called to order by Vice Mayor Karina Talamantes and adjourned at 4:33 PM. The agenda included a Consent Calendar, two public hearings, and two discussion items, including an early budget work session and a workshop on the 2027 SHRA One-Year Action Plan Federal Programs Allocation Process. Mayor Kevin McCarty was absent for the entire meeting. The council approved all Consent Calendar items unanimously, adopted the public hearing items, and received and filed the budget work session, providing direction for further analysis.

Consent Calendar

• Item 1: Confirmed Elsie Guerrero to the Disabilities Advisory Commission (Seat D).
• Item 2: Established the Shore Vista Way Overcrossing Traffic Signal Project (T15265300) as a new Capital Improvement Project and authorized a $640,000 transfer from the Greenbriar IA1 PAG fund.
• Item 3: Received and filed the January 2026 Monthly Investment Transactions Report.
• Item 4: Approved the Americans with Disabilities Act (ADA) Public Right-of-Way Prospective Plan for Fiscal Year (FY) 2025/26.
• Item 5: Awarded the construction contract for the HSIP-10 Pedestrian Crossings Improvement Project to St. Francis Electric, Inc. for $347,964, and approved a $193,600 budget adjustment.
• Item 6: Authorized a supplemental contract with Suburban Motors dba Future Ford of Sacramento for Ford OEM parts and repairs, increasing the contract by $4,800,000 to a total not-to-exceed of $6,000,000, with performance extended through June 25, 2029.
• Item 7: Adopted a resolution providing Jarvis Fay LLC access to confidential tax information for litigation support.
• Item 8: Authorized a supplemental contract with BM Enterprises Inc. dba California Auto Body for vehicle body repair services, increasing the contract by $1,250,000 to a total not-to-exceed of $2,000,000.
• Item 9: Accepted a $16,856 subaward from the Fiscal Year 2024 State Homeland Security Grant Program (SHSGP) and adjusted the operating grant budget.
• Item 10: Approved a contract amendment with Heritage Landscape Supply, Inc. for irrigation supplies, increasing the total not-to-exceed amount to $360,000 over three years.
• Item 11: Approved a contract amendment with Goodwin-Cole Co., Inc. for shade canopy repair, maintenance, and replacement, extending the contract through June 30, 2027, and increasing the total to $688,126.
• Item 12: Authorized a sublease agreement with Der Biergarten Waterfront for the Old Sacramento Waterfront Café (Steamers Building) for an initial one-year term with up to three five-year extensions.
• Item 13: Adopted a resolution authorizing the Sacramento Housing and Redevelopment Agency (SHRA) to enter into a Memorandum of Understanding with the County of Sacramento related to a contract with CVR Associates, Inc. for Executive Director services.

Public Comments & Testimony

• On Item 16 (SHRA Workshop): No public comments were offered.
• On Item 17 (Budget Work Session): Eighteen speakers addressed the council. The majority were students and staff from local high school law academies (Hiram Johnson, John F. Kennedy, and Intercom) urging the council to maintain the full-time presence of police officers in their programs, citing mentorship, leadership development, and community connections. One speaker, Lambert, criticized the council's approach to homelessness and called for audits of past contracts. Another speaker, Rose, raised equity concerns about requiring insurance and permits for futsal courts but not for other sports. A parent, Maria Gutierrez, spoke about the positive impact of the law academy on her daughter's college acceptances. Henry Harry, a subsequent speaker, proposed using empty storefronts for homeless services and a volunteer police reserve program.

Discussion Items

• Item 16: 2027 SHRA One-Year Action Plan Federal Programs Allocation Process Workshop Number One: Staff presented an overview of federal entitlement grants (CDBG, HOME, ESG, HOPWA) with estimated 2027 funding totaling approximately $9.2 million. Councilmembers discussed the need for more homelessness prevention funding, transparency in administration costs, and support for specific projects like the Robla Community Park restrooms and the renter's helpline. Councilmember Dickinson asked for a more detailed breakdown of planning vs. administration costs and expressed interest in maximizing funding for actual projects. Councilmember Kaplan and others emphasized the importance of prevention and data-driven decision-making. The item was received and filed, with direction to staff to bring back more detailed information.
• Item 17: Early Budget Work Session - Budget Context and Balancing Scenarios: City Manager Maraskeshia Smith and Finance Director Pete Coletto presented the current fiscal context, including a $66 million structural deficit for FY 2026-27, a $1.7 billion total budget, and a $872.5 million general fund. The presentation outlined three scenarios: (1) zero reductions in priority areas (economic development, homelessness, public safety) requiring 56% cuts elsewhere, (2) proportional 11.6% across-the-board cuts, and (3) a baseline approach using a 15% reduction plan from each department plus citywide strategies. Councilmembers discussed the need to protect core services, minimize employee layoffs, and explore efficiencies such as bringing contracted services in-house, analyzing vacancies, and prioritizing equity. Councilmember Dickinson, as budget chair, emphasized maintaining services, preserving employees, and advocating for state HAP funding restoration. Councilmember Kaplan requested a forensic audit and a two-year budget cycle. Vice Mayor Talamantes noted the $195 million in non-discretionary costs. Councilmember Vang stressed the importance of racial equity and protecting youth and senior services. The item was received and filed, with direction to staff to bring forward more detailed departmental presentations in subsequent weeks.

Key Outcomes

• Consent Calendar: All 13 items were approved unanimously (8-0, with Mayor McCarty absent).
• Item 14 (The Enclave at Airport Road): Approved unanimously (8-0) as a public hearing item. The project includes 32 single-unit dwellings on 2.03 acres, a development agreement, rezoning, PUD amendments, and a tentative subdivision map.
• Item 15 (Delta Shores Finance Plan and Development Impact Fee Update): Approved by a two-thirds vote (8-0) after a public hearing. The council adopted a motion to bypass the Law and Legislation Committee, a resolution adopting the updated finance plan, and an ordinance to replace references to "Stone Boswell" with "Stone Beetland."
• Item 16: Received and filed; council directed staff to bring back more detailed information on administration costs, homelessness prevention, and project readiness for the next workshop.
• Item 17: Received and filed; council provided direction to staff to explore vacancies, contract reviews, equity impacts, and to present specific departmental reduction scenarios in the upcoming March work sessions. The city manager confirmed that the list of potential cuts is a menu of options, not final decisions.