Fiscal Commission - May 20, 206

The City of Davis Fiscal Commission held a special meeting on May 22, 2026, to review and discuss the proposed midcycle budget update for fiscal year 2026-27. The finance director presented detailed information on the general fund revenues and expenditures, highlighting a projected general fund reserve balance increase from 11.1% to 13.7%. The commission discussed proposed expenditure reductions totaling approximately $1.4 million across various city departments, including cuts to professional services, staff positions, and operational expenses. Additional one-time savings of $500,000 were identified from closing open purchase orders. The meeting also addressed structural budget deficits estimated at around $2 million, deferred maintenance funding shortfalls, and challenges related to audit delays and oversight. Commissioners emphasized the need for clearer budget transparency, potential revenue enhancements such as fee increases, and the importance of addressing long-term fiscal sustainability. No formal votes on budget adoption were recorded, but staff sought commission feedback ahead of a City Council meeting scheduled for June 2, 2026, where the budget may be adopted.