After experiencing several years of financial abundance, the City of Seaside is facing a budgetary shortfall as one-time revenues gained during the pandemic years fade in the rearview.
“Like many cities here on the Peninsula and across the state, we face ongoing challenges with revenues not keeping up with expenditures,” Seaside City Manager Greg McDanel says. “Essentially, revenues have flattened while infrastructure, personnel and those costs continue to rise, so we knew we would be in a tight budget this year.”
McDanel characterizes the 2026-2027 budget as one of stabilization and recovery, with “a manageable gap in the general fund” of about $1.5 million.
“It’s manageable but it’s a real operating gap,” McDanel says. “So over the next year to 18 months, the City of Seaside is going to look at revenue generation and expenditure cost controls and other things we need to do to make sure we can get our long-term financial path back on track.”
One of those cost-control measures already in motion is freezing 22 vacant city positions, such as the economic development and community development director positions.
The city also intends to draw from its reserve funds this fiscal year in anticipation of upcoming economic development projects being built, such as Campus Town and Main Gate, which will potentially boost tax revenue in the years ahead.
“To balance this budget, we’ve reduced our reserves to approximately 88 percent of what they should be,” McDanel says.
After two budgetary sessions in May, the Seaside City Council will consider finalizing the 2026-2027 budget at its June 18 meeting.