After nearly two months of deliberations between council members and city staff, the Gustine City Council approved the adoption of its 2026-27 fiscal year budget last Tuesday.
The city’s general fund is estimated to have $3.23 million in revenue with expenses projected to cost $3.86 million. With $305,330 through transfer outs to the Recreational, Pool, Community Center and Fire Services funds, the general fund will have a $57,335 deficit. The deficit will be covered by the fund balance, according to the agenda report.
Additionally, the city is expected to record $4.5 million in expenditures through capital projects and anticipates being reimbursed $2.6 million through state and federal funding, the agenda report says. In total, Gustine could have $13.8 million in expenditures and $14.2 million in projected revenue through 2026-27, resulting in a surplus of $361,305.
The initial city budget was presented through a PowerPoint Presentation to the City Council in a workshop meeting on June 2. In the meeting, it was revealed that the city had a general fund deficit of $702,824, though the budget was presented without any cuts to services.
Three recommendations were presented to the City Council. The first was to move a combined $61,844 from the User Utility Tax to the Al Gomon Community Center, the Gustine Pool and recreational services. The second was to show deficits in the general fund, community center, pool and recreational services accounts and decide what to do with the accounts next year.
The third option was a combination of the previous two choices.
Following suggestions for revisions, a second hearing was held on July 21. Morrison presented a revised budget that included cost reduction without eliminating staff positions and using a salary split reallocation from the general recreational funds to the water, sewer and refuse funds. With the
This led to 34% of salary allocations moved out of the reserves for the general fund, community center and recreational services. Fifteen percent was reallocated to the water fund, 11% was reallocated to the sewer fund and 8% to the refuse fund.
