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Redwood City, CA - The Redwood City City Council on June 22 adopted the City’s fiscal year 2026-27 budget, five-year Capital Improvement Plan and fiscal year 2026-27 budget for the Successor Agency to the Redwood City Redevelopment Agency.
The adopted budget maintains core City services and funds investments in public safety, infrastructure, housing, transportation, parks, libraries, children and youth, and neighborhood quality of life. It also reflects a more cautious financial outlook as the City responds to slower revenue growth, rising costs and long-term infrastructure needs. The City is preparing for a weaker revenue outlook driven by declining sales tax performance, the loss of certain grants and the continued absence of state funding to replace vehicle license fee-related property tax revenue.
The citywide budget includes $423.7 million in revenue and $410.6 million in expenditures. The General Fund expenditure budget totals $206.1 million, which is $5 million, or 2.5%, more than the prior fiscal year.
“This budget reflects our commitment to housing, transportation, children and youth, public safety and the services that contribute to Redwood City’s quality of life,” said Mayor Elmer Martínez Saballos. “It allows us to continue providing the services residents rely on while preparing responsibly for the years ahead.”
The budget maintains the City’s 15% General Fund reserve and uses a limited amount of one-time funding. It also limits new ongoing expenses as the City plans for continued economic uncertainty.
Looking ahead, the City’s General Fund is forecast to face annual deficits ranging from $22 million to $29 million beginning in fiscal year 2027-28. The City will continue monitoring its financial position, evaluating long-term funding strategies and working with San Mateo County and neighboring cities to seek restoration of state vehicle license fee backfill funding.
Key investments include:
- Supporting affordable housing, tenant protections, homelessness response and housing stability;
- Improving traffic safety and access for people walking, biking, driving or using transit;
- Funding parks, recreation programs, libraries, literacy services, youth programs and community facilities, including the continued activation of the Veterans Memorial Building/Senior Center and renovating Hoover Park;
- Improving downtown pedestrian areas and library facilities;
- Expanding school-area safety projects as well as after-school and summer programs;
- Restoring two previously unfunded police officer positions;
- Expanding Fire Department training resources;
- Launching a pilot Neighborhood Response Team to address illegal dumping, nuisance conditions and other neighborhood concerns;
- Continuing wildfire mitigation work in parks and open spaces;
- Strengthening cybersecurity and City technology systems; and
- Updating the City’s financial and administrative systems to improve service delivery and financial reporting.
The budget also includes approximately $40.5 million in capital investments during fiscal year 2026-27. These projects support transportation, water, sewer, stormwater, parks, parking and City facilities.
The five-year Capital Improvement Plan identifies projects needed to maintain and improve City infrastructure. Because long-term infrastructure needs exceed currently available funding, the budget also includes a citywide facilities assessment, a stormwater master plan and financial planning for future capital projects.
“Redwood City remains in a stable financial position, and this budget helps us protect that stability while planning for long-term fiscal sustainability,” said City Manager Patrick Heisinger. “It keeps important services in place, addresses current City Council priorities and gives the City room to respond as financial conditions and community needs change.”
Find more information, including Redwood City’s fiscal year 2026-27 Budget in Brief, on the City’s Budget webpage, www.RedwoodCity.org/Budget. For more information and ways to participate in the City Council meetings, visit vsit the City Council webpage, www.RedwoodCity.org/CouncilMeetings.
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