Dublin City Council To Review Preliminary Budget

DUBLIN, CA — The Dublin City Council will receive an overview of the city's preliminary two-year General Fund budget, and update to the city's 10-year Financial Forecast.

According to a city staff report, the preliminary budget reflects General Fund revenues of $136.5 million and total expenditures of $126.2 million for Fiscal Year 2026-27. In Fiscal Year 2027-28, revenues are projected to rise to $138.5 million, while expenditures are expected to rise to $132.2 million. After accounting for contributions to capital improvement projects and internal service funds, the city anticipates a modest increase in reserves the first year, and slight decrease for the second.

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Revenue growth is expected to be driven largely by property taxes, which are projected to rise due to modest increases in assessed property values and continued development. Property tax revenue is expected to increase by $1.98 million, or 3%, for 2026-27, and by $3.4 million, or 5%, for 2027-28.

Sales tax revenues are also expected to grow, though inflation, higher costs, and broader economic uncertainty may account for slower growth. Revenues are expected to increase by $358,636, or 1.3%, for 2026-27, and by $838,691, or 3%, for 2027-28.

Expenditures include rising salary, benefit, retirement, pension, and healthcare obligations. The largest expenditures will be contract services like fire, police, and maintenance. Personnel costs are projected by rise by $705,721, or 4.2% for 2026-27, and by $959,015, or 5.5%, in 2027-28, driven by new positions, cost-of-living adjustments, and merit increases. Benefit expenditures are also increasing by 9.7% in the first year and 5.8% in the second year.

Contract service costs are expected to rise by $7.7 million, or 10.4% in 2026-27, and $3.45 million, or 4.2%, in 2027-28.

The budget does include some offsets, including a nearly million-dollar drop in services and supplies spending in 2026-27, though this is expected to rise the following year.

City officials say that while the budget is currently in a stable position, an updated 10-year forecast shows the city could face an operating deficit beginning around 2030.

The meeting will take place Tuesday at 7 p.m. for the full agenda.