Our GOVERNMENT

Budget Development

The City operates on a two-year (biennial) budget cycle. Prior to July 1st of every odd numbered year, the City Manager submits to the City Council a proposed budget for the next two fiscal years. The budget includes revenue (income) and expenditure (spending) projections and has two parts: the operating Budget and the Capital Budget. Every two years the budget is reviewed and updated.

Important Dates

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Timeline

For general information about the City’s budget, visit the Budget Overview webpage.

Budget Development Updates

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Additional Information

This section contains more detailed information including links to agenda reports, financial reports, and City Council meeting videos.

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Background Information

Presentation of City Budget Update in advance of the upcoming 2-year budget development process

Presentation on polling results associated with revenue measure feasibility; Adopt FY 2024/25 Mid-Term budget (adopted at May 21 City Council Meeting); Review language for a potential ballot measure to increase General Fund revenue ( 1/2 cent sales tax)

Presentation on community survey results associated with City priorities

View the Agenda Report that introduces potential future service reductions (Contingency Menu) if revenues do not increase

Presentation on the use of Pension Trust funds to reduce the projected General Fund deficit

View the Agenda Report presenting financial forecast assumptions and proposed reductions to discretionary spending.

FAQs

Pleasanton is facing a severe and increasing structural deficit, meaning that expenses have and will continue to grow faster than revenues. Current forecasts indicate an average budget shortfall of approximately $13 million annually over the next eight years.

The City’s General Fund supports both City services and infrastructure. As the community has grown over the years, City services and programs have expanded to accommodate the increase in service demand. The City lost more than $11 million in hotel tax revenue during the pandemic and has not fully recovered to the pre-pandemic level, impacting the City’s financial stability.

The City of Pleasanton is committed to responsibly using the community’s money as we continue to provide the services it expects and prioritizes. We are working to cut costs from our budget, we’ve already cut $2.5 million from this year’s budget and are looking for more ways to save. Every time we have a financial decision to make, we consider all options to determine if, and how much, should be spent.

As the community has grown, the City has added new amenities and services without increasing staffing levels and resources proportionally. As new parks have been added, staff to maintain and run them have not increased at the same level. As new miles of roadway have been added to the city, street maintenance staff and engineers have not been increased proportionately. As the population has increased, police and fire staffing numbers have not increased proportionately.

The City has been working to proactively address projected budget deficits with a combination of reduced costs and new revenue. We have cut over $2.5 million from this year’s budget. We aren’t starting new programs that don’t pay for themselves. We’re cutting back on contractors where we can. We’ve frozen multiple vacant positions.

We’re looking at ways to increase revenue like increased fees for development and adjusting user fees for City facilities.

Over time, the City has made changes to its organizational structure, compensation packages, and operating strategies to reduce costs and improve efficiency. Reduced retiree health benefits are being offered to employees, and all City employees now contribute their maximum share towards the employee’s portion of the pension contribution. The City has also been proactive in setting funds aside in a pension reserve and established General Fund reserves to weather economic uncertainties.

Budget Advisory Committee

This section contains more detailed information regarding the Budget Advisory Committee.