Fiscal Commission - May 6, 2026

The City of Davis Fiscal Commission held a meeting on May 6, 2026, focusing primarily on budget updates, audit reports, and fee adjustments. Key procurement-related discussions included a midyear budget update for fiscal year 2026, highlighting a reduction in the general fund reserve from 11.5% to 8.9% due to prior year encumbrances and expenditures. The commission reviewed revenue projections, noting a decline in cannabis tax revenue and concerns about structural deficits in the general fund. They discussed reallocating salary savings and the need for conservative budgeting given economic uncertainties. The commission also received the fiscal year 2023 single audit report, noting ongoing issues with internal controls and audit findings, and considered scheduling a special meeting to discuss the midcycle budget and potentially meet with auditors to address financial oversight. Additionally, the commission reviewed proposed updates to user fees and charges, including increases tied to CPI adjustments and cost recovery for services such as fire hydrant use, road closure inspections, and police security, with discussions on balancing fee increases against accessibility and subsidy levels. Public comments included suggestions for new business license taxes to improve city finances. Motions were passed to approve the agenda and consent items, with plans to revisit audit findings and budget recommendations in upcoming meetings.