GUSTINE — The Gustine City Council was expected to hold a public hearing to consider adopting the city’s 2026‑27 operating and capital budget, a spending plan that has undergone two rounds of revisions following direction from councilmembers at workshops in June and July.
Finance Director Jenny Morrison will present the final proposal, which she described in a staff report as “fiscally sound” and reflective of council guidance. The budget outlines projected revenues of $14.23 million across all funds and expenditures of $13.86 million, including capital projects, leaving the city with an overall surplus of $361,305.
The General Fund — the city’s primary operating account — is projected to receive $3.32 million in revenue and spend $3.69 million. The $362,665 gap includes $305,330 in transfers to support recreation, the community center, the swimming pool and fire services. Without those transfers, the General Fund deficit is $57,335, which will be covered by reserves.
The council last reviewed the budget at a workshop on July 21, where staff presented a revised plan aimed at reducing General Fund exposure without cutting positions. Morrison said the changes included reallocating 34% of salary costs from the General Fund, recreation and the community center to enterprise funds — 15% to water, 11% to sewer and 8% to refuse — along with reductions in operational expenses, training, contract services and vehicle maintenance.
Those adjustments lowered the General Fund’s projected subsidy to $225,346.
Despite the overall surplus, several individual funds continue to show deficits. The community center is expected to receive $12,000 in revenue but spend $51,834, resulting in a $39,843 shortfall. The swimming pool fund faces a $133,565 deficit, with operating costs of $170,565 and revenue of $37,000. Recreation and fire services together are projected to be $149,821 in the red.
Enterprise funds also show mixed results. The refuse fund is projected to generate $833,000 but spend $950,362, leaving a $177,362 deficit. The sewer fund, despite $2.4 million in revenue, is expected to finish $55,832 in the negative. Water and storm drain operations together are projected to have a $27,497 deficit.
Mayor Pro Tem Rich Ford said during the July workshop that staff should continue evaluating how costs are divided among funds, pointing specifically to street sweeping. “Part of that street sweeping cost, I think should be allocated to storm drains because that’s definitely a big portion of our storm drain system, as cleaning those gutters,” Ford said.
Capital improvement spending is expected to total $4.5 million, with $2.66 million reimbursed through state and federal sources. Projects were outlined during the July 21 workshop and are included in the final budget.
The city held public budget workshops on June 2 and July 21.
Councilmembers are expected to take public comment before considering adoption of the final 2026‑27 budget.
