Sacramento City Council Meeting: Budget Work Session, March 17, 2026

The Sacramento City Council convened on Tuesday, March 17, 2026, at 2:34 p.m., adjourning at 6:24 p.m. The meeting included special presentations, a consent calendar, discussion of the City Auditor's community survey, approval of the Water Forum 2050 Agreement, and an early budget work session covering seven city departments. The budget session highlighted a $66.2 million general fund deficit and proposed reductions.

Special Presentations

• Declaring Child Care a Public Priority: Mayor Pro Tem Guerra presented a resolution recognizing child care as essential infrastructure. Speakers from Child Action, the Metro Chamber, and the city's child care project manager highlighted successes (e.g., 392 new child care slots, 22 apprenticeship graduates) and ongoing challenges (over 5,000 children waitlisted, licensed capacity for only 29% of children of working parents).
• National Day of Play: A resolution designating the first Saturday after the spring equinox (March 21, 2026) as National Day of Play. Speakers encouraged residents to disconnect from devices and use the city's 243 parks.

Consent Calendar

• All 11 consent items were approved unanimously (9-0) by Motion No. 2026-0053. Key items included:
  • Acceptance of a $3.5 million GO-Biz Cannabis Equity Grant.
  • A cooperative agreement with Allstar Fire Equipment for up to $3 million for emergency equipment.
  • Authorization to apply for up to $1.5 million in state Prohousing Incentive Program (PIP) Round 4 funds.
  • Acceptance of $500,000 in state grant funds for North Natomas Regional Park Phase 7 improvements.
  • A resolution of intention to renew the Midtown Property and Business Improvement District, with a public hearing set for May 5, 2026.
  • Approval of $300,000 in HHAP-3 grant supplements for transitional age youth sheltering services.
  • Several other routine contracts, fee reports, and funding agreements.
• Councilmember Kaplan noted that PIP Round 4 funding may not be awarded because the city already received previous rounds, and other jurisdictions that have not yet received funds would have priority. Kaplan and Mayor Pro Tem Guerra expressed support for continuing to apply.
• Councilmember Kaplan highlighted that HHAP-3 funds extend 68 transitional age youth beds only through November 2026, after which programs may shut down unless new funding is secured.
• One public speaker, Maisha Bahati (owner of Crystal Nugs, a cannabis dispensary), expressed strong support for the GO-Biz Cannabis Equity Grant, stating that the CORE program provided the only financial assistance she received and that it helped her become “the first black woman-owned dispensary here in Sacramento.”

Discussion Items

• Item 12: City Auditor’s 2026 Community Survey – Principal Fiscal Policy Analyst Joyce Chi presented results from the sixth community survey. A representative sample of 7500 households yielded 450 responses (6% response rate). Key findings: 68% of residents rated quality of life positively; parks and recreation were a strength (64% positive). Areas of concern included safety, mobility (only 26% positive for transportation system), economy, and governance. Cleanliness ratings trended down (23% positive). Councilmembers Dickinson, Guerra, Kaplan, and Vang noted the survey should inform budget and policy decisions, emphasizing the need to prioritize housing, homelessness, public safety, and parks.
• Item 13: Water Forum 2050 Agreement – The council passed Motion No. 2026-0058 (8-0, Mayor McCarty abstaining) authorizing the City Manager to execute the Water Forum 2050 Agreement, including a Purveyor Specific Agreement, and a Third Interagency Agreement for administration. The agreement, negotiated over about six years, aims to ensure water reliability on the Lower American River and preserve environmental values. Speeches from Brett Ewart (DOU) and Ashley Casey (Water Forum Executive Director) highlighted successes over 25 years, including habitat projects, groundwater management, and collaborative science. Councilmembers praised the regional collaboration. Regarding a question from Vice Mayor Talamantes about El Dorado County’s proposed 40,000 acre-feet of water rights, staff clarified that El Dorado Water Agency is not signing the agreement due to opposition among members, but conversations are ongoing.

Early Budget Work Session

• The council received and filed the budget presentation, with no final decisions made. Departments presented baseline reduction strategies to close a $66.2 million general fund deficit. Key proposals and public comments included:
  • Youth, Parks, and Community Enrichment (YPCE) : Proposed baseline reductions of $4.8 million (11.2% of GF budget), eliminating 102 FTE (86 filled). Would reduce community center hours from six to four days per week (27% reduction), close four of six wading pools, reduce swim days at neighborhood pools from six to three days per week, and cut youth programs (e.g., Summer at City Hall, Semester at City Hall). Park maintenance would lose 54 positions (53% of maintenance staff).
  • Community Development : Proposed $3.3 million in reductions with no employee layoffs, mainly through fee increases and reduced spending on consultant services. The affordable housing impact fee assistance program (zero-dollar fee rate) would be reduced, potentially limiting affordability.
  • Finance: Proposed ~$1 million reduction by cutting two vacant positions and aligning revenue projections.
  • Human Resources: Proposed level 2 and 3 reductions, preserving core services but reducing capacity for personnel transactions, retiree communications, and DEI initiatives.
  • Information Technology: Proposed $1.1 million reduction through elimination of 3 filled and 1 vacant position (311, IT support, GIS), increasing response times and limiting data analytics.
  • Public Works: Currently a net contributor (~$5.5 million) to the general fund. Proposed parking management changes to improve turnover and revenue, and emphasized $38.1 million in revenue generated vs. $32.7 million in GF support.
  • Department of Utilities: No general fund support; proactively proposed 8–9% reductions to address projected deficits, postponing critical infrastructure projects. Director Fadl emphasized the need for rate increases for water and wastewater funds (no rate increase in eight years) to address $2.2 billion in deferred maintenance.
• Public testimony was heavily weighted toward protecting YPCE services. Over 30 speakers urged the council not to cut senior center operations (Bell Coolidge, Heart Senior Center), youth programs (Summer at City Hall, Semester at City Hall), Access Leisure for people with disabilities, and park maintenance staff. Many seniors described centers as lifelines preventing isolation and falls. Youth speakers described programs as essential for civic engagement and leadership.

Key Outcomes

• Approved: Consent Calendar (items 1–11) passed 9-0.
• Approved: Water Forum 2050 Agreement (Item 13) passed 8-0 (Mayor McCarty abstaining).
• Received and filed: City Auditor’s 2026 Community Survey (Item 12) and Early Budget Work Session (Item 14). No final budget decisions were made; further work sessions and hearings are scheduled for April, May, and June.
• Direction: Councilmembers requested additional data, including a breakdown of baseline reduction percentages by department, a list of citywide contracts, and analysis of fee waiver utilization. Councilmember Vang urged exploring a potential park bond, while Councilmember Kaplan asked staff to review 311 service alternatives and the cost of room rentals. Councilmembers Jennings, Vang, and others stated they would not support cuts to youth and senior programs or to low-paid park maintenance staff. Councilmember Vang called for prioritizing vacancies (including police vacancies) over cutting filled positions.
• Next steps: The proposed budget will be released at the end of April, with formal hearings in May and June.