Salinas City Council approves new two year city budget

Salinas passed its biennial budget Tuesday, outlining the city's financial roadmap for the next two years.

Salinas City Council approved an operating and capital budget of $323.9 million for 2026-27 (Year 1), a 13.7% increase over the current year, and $320.26 million for 2027-28 (Year 2). This marks the city's transition from an annual to biennial (two-year) budget.

Highlights of the budget include $1,895,000 annually for the 100-bed SHARE Center, an emergency shelter jointly funded with Monterey County, as well as continued funding of $500,000 per year for rental assistance and $150,000 per year for the city's community sponsorship program.

The Sanitary Sewer Payment Assistance Program that helps residents pay for sewer rates, which were indqcreased last year, has continued funding of $150,000 per year.

The biennial budget includes 11 new positions, bringing the estimated total city workforce to 679. Separately, the city council approved moving forward with hiring a police department community engagement officer at an estimated annual cost of $150,000.

The biennial budget covers the first two years of the city's 5-year Capital Improvement Plan (CIP). The CIP outlines the city's long-term infrastructure projects and was also approved by city council Tuesday.

Over the course of the five-year plan - July 1, 2026, to June 30, 2031 - the staff report estimates potential investments totaling $265.5 million.

The capital budget for Year 1 totals nearly $47.2 million, an increase of $17.8 million or 61% from the prior year and $40.3 million in Year 2.

Major investments across the two-year period include $31.8 million in sewer infrastructure, streets and sidewalks totaling $27.3 million, $16.5 million on safe routes to school improvements at two locations, and an additional $4.5 million for the Boronda Road Congestion Relief project. $2.6 million will be reallocated to Abbott Street improvements.

The city also has nearly $66 million in unspent appropriations, amounting to 132 projects citywide. About $29.3 million of that amount is earmarked for street and sidewalk upgrades, and $8 million for a recreation center in district 5.

During public comment, Salinas residents and advocates shared their views on the budget and offered recommendations on where they would like the city to allocate funding.

Jennifer Vazquez, representing Big Sur Land Trust and a coalition of community groups including Salinas Regional Sports Authority, Center for Community Advocacy, Tatum's Garden Foundation and Rancho Cielo, advocated for at least two additional parks and operations staff.

In September, Big Sur Land Trust will open to the public 67 acres of open space next to Ensen Community Park. As part of an agreement between Big Sur Land Trust and the city, the City of Salinas will be responsible for traditional maintenance of the 67 acres, while Big Sur Land Trust continues to manage restoration activities and grow the Friends of Ensen Park fundraising and volunteer apparatus.

Other speakers requested the city look at supporting cooperative housing initiatives and groups including Salinas youth group Ciclovia requested funding. City Councilman Andrew Sandoval requested doubling the city's small business grant and neighborhood grant programs to $150,000 and $84,000, respectively.

The City Council directed staff to revisit these issues at a later date. After hearing residents' concerns about prolonged delays in neighborhood street improvements while large-scale projects moved forward elsewhere, Mayor Dennis Donohue said the city must improve its response to neighborhood-specific issues, while also asking residents for patience.

"We need to find a better way to address the small issues that pertain to our neighborhoods," said Mayor Dennis Donohue. "We do also need to recognize that there are things in the works, and we need to move forward with them."

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This article originally appeared on Salinas Californian: Salinas City Council approves new two year city budget

Reporting by Roseann Cattani, Salinas Californian / Salinas Californian

USA TODAY Network via Reuters Connect

Copyright Reuters or USA Today Network via Reuters Connect

This story was originally published June 18, 2026 at 9:31 AM.