Mountain View’s budget is on track for the current year despite lingering uncertainties about an economic slowdown, a trend that has defined the city’s financial projections for the past couple years.
Mountain View is expected to close out the 2025-26 fiscal year with a roughly $1.8 million operating balance, excluding any pending changes. That’s according to Derek Rampone, the city’s finance and administrative services director, who presented an update to the City Council at its Feb. 24 meeting. That’s an increase from the $743,000 forecast when the budget was first approved last June.
The city’s general fund revenues are expected to grow to $196.3 million. This is largely consistent with the budget the city council originally adopted. However, the city has experienced a notable decline in property tax revenue, which is coming in $2.5 million below what was initially projected, according to a staff report.
Expenditures are expected to hit $194.5 million, slightly lower than what was forecast last year, the report said.
The city council unanimously approved the midyear budget adjustments, which also authorizes funding for additional staff positions, including a full-time public arts administrator, facilities maintenance supervisor, librarian and security services guard.
But while councilmembers supported the budget updates, they also expressed concerns about flattening revenue streams and rising costs, which are expected to continue into the next fiscal year.
“The projections are concerning,” Councilmember Lucas Ramirez said. “We have to be mindful and prudent, and I think that’s something that the future council will certainly take to heart.”
City staff are forecasting an operating balance of $453,000 for the 2026-27 fiscal year, Rampone said, adding this was a preliminary figure and much could change before the council adopts a new budget in June.
Midyear budget adjustments
The midyear update was not only an opportunity for the council to review the city’s finances. It also gave them the chance to weigh in on adjustments to funding allocations. Councilmembers praised city staff for putting forward updates that addressed high priorities, including the needs of its most vulnerable residents.
“The recommendations in the midyear are excellent and again very community minded,” Ramirez said, adding that the budget updates anticipated challenges related to the federal funding uncertainties under President Donald Trump’s administration.
To mitigate some of these impacts, Ramirez proposed increasing funding for a homeless prevention program that provides low-income households with direct financial assistance. It covers expenses including rent, utilities, vehicle repairs and health care costs. Councilmembers supported the recommendation to increase funding from $35,000 to $85,000.
The council also backed more substantial changes. The budget includes plans to increase funding for administrative overhead costs at Shoreline Park by $4.1 million, as well as allocating $2 million for litigation costs, which are handled by the city attorney’s office. Councilmembers also supported a staff recommendation to appropriate $1 million to its property acquisition reserve.
Councilmembers viewed smaller appropriations, like $45,000 for power washing services, favorably as well.
“My neighbors ask me about that all the time,” Councilmember Alison Hicks said. She also expressed enthusiasm for the city’s plan to hire additional staff to support parks, trails and open space, as well as public art initiatives.
The annual cost for four new full-time staff positions presented in the budget includes $255,700 for a public arts administrator, $261,900 for a facilities maintenance supervisor, $210,900 for a librarian and $170,000 for a security service guard. The addition of the librarian and security guard will support expanded hours at the Mountain View Public Library, according to the council report.
A preliminary review of the city’s 2026-27 budget is expected to occur in April with public hearings and final adoption by the city council scheduled for June, Rampone said.
This story originally appeared in the Mountain View Voice. Emily Margaretten joined the Mountain View Voice in 2023 as a reporter covering City Hall.