Salinas City Council approves a $320 million budget.

Salinas City Council unanimously approved a $320 million budget for the next two fiscal years on Tuesday, June 16. The budget, while reflecting modest growth, is driven by economic uncertainty and limited growth in major revenue sources, including property tax, sales tax and other local taxes, according to the city’s finance director Selina Andrews.

“We want to provide financial stability to our residents that the services are going to be there and that we can continue to move forward in infrastructure. The sooner we can provide that sustainability, the better,” Mayor Dennis Donohue said.

The budget includes funding for expanding the Police Department workforce by unfreezing four officer positions and adding a deputy police chief to enhance oversight amid rising calls for service, plus a permit center clerk in community development, an administrative analyst and a code enforcement officer, to name a few positions. It also includes ongoing funding for the SHARE Center aiding unhoused individuals and funding for the mobile crisis unit and maintains programs such as rental assistance and sanitary sewer payment subsidies.

Andrews did address some unknowns or risks during the meeting, such as uncertainty with federal administration policies, new forecasted revenue including revenue related to an Amazon warehouse currently under construction, Measure G’s sunset and economic uncertainty.

“The budget reflects Amazon’s arrival into the city in terms of contributions to the tax base and we are not quite sure what that high and low ceiling looks like, but it’s a net positive,” Donohue said.

Despite economic uncertainties such as inflation and limited revenue growth, the budget balances expenditures by reallocating capital improvement project funds, utilizing Police Development Impact Fees to pay the new police building debt and increasing vacancy factors.

City Council will also ask voters this November to extend Measure G beyond its sunset date.