Danville Adopts $42.6M Balanced Budget, $17.4M Capital Plan With Zero Unfunded Liabilities

Danville's Town Council completed its most consequential fiscal night of the year, unanimously adopting a $42.58 million operating budget, a $17.4 million capital improvement program, and a slate of fee and assessment adjustments — all while maintaining the rare California distinction of carrying zero unfunded pension or retiree health-care liabilities. The meeting also featured escalating e-bike enforcement news, a Pride Month proclamation, and the closure of a 30-year-old regional traffic fee.

• $42.6M operating budget adopted with 41% reserves, zero unfunded liabilities, and a three-track strategy targeting cost recovery, infrastructure investment, and state sales tax reform
• $17.4M capital improvement program funds 47 new projects, with 82% now paid by local revenue as state and federal grants dry up
• 3% landscaping and lighting assessment increase levied at the CPI maximum after Council called the funding gap "existential"
• E-bike crackdown escalates: minor cited at 45 mph, school district agrees to police at bike corrals this fall
• Valley Link secures $40M in Alameda County toll funds for Altamont Pass commuter rail
• Pride Month proclaimed; Valley Pride event set for Saturday on the town green

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Danville's Fiscal Fortress: Same Headcount for 35 Years, No Debt

The council unanimously adopted the FY 2026/27 operating budget, successor agency budget, and master fee schedule in a single vote that capped a lengthy presentation by Town Manager Tai Williams.

The basics: The $42.58 million budget represents a 2.7% increase over the prior year. Danville's revenue base is narrow — property tax, sales tax, and the landscaping and lighting assessment district make up roughly two-thirds of all revenue. The town maintains 41% operating reserves and finances capital projects on a pay-as-you-go basis.

Why it matters: Danville is one of a handful of California cities carrying zero unfunded pension liabilities and zero post-employment benefit obligations — a fiscal position Williams underscored as foundational.

"The town has no unfunded pension liabilities and the town has no post-employment benefit obligations," said Town Manager Tai Williams.

Where things stand: Double-digit cost pressures are pressing in from multiple directions. The sheriff's contract for police services continues to climb. Police liability insurance premiums are driven by officer-involved shooting experience ratings — a cost Danville absorbs regardless of its own safety record. Animal services run roughly $5,700 per call. And electricity and water costs are rising even as usage declines.

To counter those headwinds, Williams outlined a three-track fiscal strategy: push recreation cost recovery from 65% toward 70%, invest in civic facilities to attract corporate event rentals on slower weekdays, and pursue state-level sales tax reform. On the last point, Williams said he is working with a statewide city managers group to champion legislation redirecting county-pool e-commerce tax revenue back to the jurisdictions generating point-of-sale activity.

The master fee schedule includes targeted reductions — lower facility rental rates on Mondays through Wednesdays to draw corporate tenants downtown, and reduced plan-check fees — alongside modest increases for police alarm-response and tow-release fees. The Brown Act salary disclosure showed range adjustments for the assistant town manager and department heads, but no changes for the town manager or city attorney.

The other side: There was no opposition. Every councilmember praised the budget. Mayor Newell Arnerich drove home the point about staffing discipline:

"We have the same number of employees that we did 35 years ago. There's no public entity on the planet, particularly in California, that didn't increase all of those significantly," said Mayor Arnerich.

Vice Mayor Robert Storer echoed the theme: "We never spend more than we make and we save money for a rainy day. For us to sit here as a handful of those without unfunded liabilities — it's always amazed me."

Councilmember Renee Morgan added: "I'm so proud to be a part of the council and a part of the town of Danville to be able to sit balanced once again."

Decisions: The council voted 5-0 to adopt Resolution No. 45-2026 (operating budget), Resolution No. 46-2026SA (successor agency budget), and Resolution No. 47-2026 (master fee schedule). (For: Arnerich, Storer, Morgan, Stepper, Belotz; Against: none; Absent: none.)

What's next: Staff will monitor the statewide sales tax reform effort and continue pursuing corporate event revenue at civic facilities.

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$17.4M Capital Plan Leans Heavily on Local Dollars

The five-year Capital Improvement Program, adopted unanimously, appropriates $17.4 million for 47 new projects — 76 total when continuing work is included — a $5.37 million increase over the prior year.

Why it matters: The funding math has shifted dramatically. General-purpose revenue now covers 82% of CIP costs, up from a roughly even split with outside grants in prior years. Danville's relative affluence has made it increasingly ineligible for state and federal grant programs, meaning the town's $542.5 million portfolio of infrastructure (in today's dollars) built since incorporation in 1991 now depends almost entirely on local savings.

Where things stand: The bulk of the increase is driven by set-asides for future major road rehabilitations on Camino Tassajara and Croquena Road. The town's pavement condition index sits at 79, projected to reach 81 after current slurry seals — sustained by an annual $3 million road commitment. Williams noted that 71% of the CIP workload is now maintenance and rehabilitation of existing assets rather than new construction.

Mayor Arnerich put the spending in perspective: "We spend nearly $350 a resident in small dollars. There are some cities that spend nothing on that."

Decisions: Resolution No. 48-2026 passed 5-0. (For: Arnerich, Storer, Morgan, Stepper, Belotz; Against: none; Absent: none.)

What's next: Measure J, the county transportation sales tax that contributes to local road funding, is set to expire in 2034 — a looming deadline that will shape future capital planning.

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Lighting and Landscaping Assessment Gets Maximum 3% Increase

After a public hearing that drew no opposition, the council levied the annual landscaping and lighting assessment district increase at 3% — the ceiling allowed under Proposition 218 and exactly matching the San Francisco Area CPI for December to December.

Why it matters: Without the CPI-linked rate adjustment, the general fund would have been forced to subsidize park and street-light maintenance at unsustainable levels. Council members who fought to pass the assessment mechanism in prior years treated this vote as vindicating that effort.

Assistant Town Manager Dave Casteel presented the final step in the annual process under the 1972 Landscaping and Lighting Act, as modified by Prop 218, which requires engineer reports and public hearings each year.

Vice Mayor Storer reflected on the difficulty of getting the assessment approved in the first place: "We all know how difficult this was just pulling this thing across the finish line and it could have actually gone a lot of different ways. You educated the community."

Decisions: Resolution No. 44-2026 passed 5-0. (For: Arnerich, Storer, Morgan, Stepper, Belotz; Against: none; Absent: none.)

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E-Bike Crackdown Intensifies; School District Opens Doors to Police

Town Manager Williams delivered a monthly report dominated by public safety and staffing updates, but the headline was the escalation of e-bike and e-scooter enforcement near schools.

Why it matters: A May 14 enforcement operation caught a minor riding an e-bike at 45 mph through a stop sign. Both the minor and the parents were cited. The story generated roughly 1,500 likes on Facebook — a strong signal of community support.

A second operation on May 27 near Charlotte Wood Middle School resulted in 30 stops and three confiscated e-scooters. Critically, Williams reported that the San Ramon Valley Unified School District superintendent has committed to allowing police at school bike corrals when the new school year begins.

"The superintendent was very supportive in committing to working with our police department in the upcoming school year in specifically inviting our law enforcement personnel to be posted outside the bike corral," Williams said.

Williams also noted that development services achieved a 99% on-time plan review rate, well above its 90% target. He acknowledged the pending retirement of a longtime planner named Fred after 38 years, and said a replacement for staff member Jen Starnes has been hired and starts June 29.

On election logistics, Williams flagged a last-minute ballot-box surge of 15 cars on election night, prompting plans to station law enforcement at all three drop-off locations in November.

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Pride Month Proclaimed as Valley Pride Returns to Town Green

Mayor Arnerich read the LGBTQ+ Pride Month proclamation, and Jamie Wolf, treasurer of PFLAG Danville San Ramon Valley, accepted it with remarks connecting the moment to the Stonewall legacy and current mental health data.

"At a time when LGBTQ folks are three times more likely to attempt suicide, proclamations like this one today are literally lifesavers," Wolf said.

Wolf invited the community to the Valley Pride event on Saturday, June 6, on the town green from 10 a.m. to 4 p.m., co-hosted by the Town of Danville and partner organizations including the San Ramon Diversity Coalition, Danville Congregational Church, Discovery Counseling, and Rewire Allies. The consent calendar separately adopted Resolution No. 41-2026 authorizing the Rainbow Flag display at Town facilities during June.

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Council Closes 30-Year Regional Traffic Fee

The council amended the Southern Contra Costa Joint Exercise of Powers Agreement to add Innovate 680 as an eligible project, clearing the path to transfer remaining fund balances to CCTA and close out a regional traffic-mitigation fee structure created in 1996 among Danville, San Ramon, and Contra Costa County.

Williams explained that two of three original regional projects are complete and the Stone Valley Road project is underway. The amendment allows residual funds to flow to the I-680 congestion-relief program. He also noted he discussed using a portion of the balance to offset CCTA data-subscription costs now being passed to cities. No fiscal impact to the Town.

Decisions: Resolution No. 49-2026 passed 5-0. (For: Arnerich, Storer, Morgan, Stepper, Belotz; Against: none; Absent: none.)

What's next: The regional fee closes once San Ramon and Contra Costa County take similar action.

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Minor Items

• Consent calendar (items 6.2–6.5) approved 5-0, including the Register of Demands, Rainbow Flag resolution (No. 41-2026), November 2026 election consolidation (Resolution No. 42-2026), and the Sycamore Valley Road Improvements construction contract (Resolution No. 43-2026, CIP No. C-635).
• May 19 meeting minutes (item 6.1) pulled from consent for a correction ensuring the record reflects direction given to a resident regarding Republic Services waste hauling; approved 5-0 with the amendment.
• Central Contra Costa Sanitary District representative Chris Carpenter invited residents to the agency's free 80th anniversary celebration on June 13 (10 a.m.–2 p.m.) featuring treatment plant tours, educational displays, and racing toilets.
• Danville Artists Network founder John Desentis introduced the new grassroots group, which grew local participation in the Tri-Valley Artist Studio Tour from zero artists last year to 15 at 12 sites; the group plans to appear at the January car show and seek street-banner signage.
• TRAFFIX school bus program: Councilmember Mark Belotz reported seventh-period bus routes will be added for Monte Vista High School, pass sales rose 7.3% to 1,428, and 11 new driver trainees are in the pipeline. ACH payments will now be accepted alongside credit and debit cards.
• Valley Link regional rail: Councilmember Karen Stepper reported the authority secured $40 million in Alameda County Transportation Commission toll funds for the I-580 Altamont Pass project. ACE passengers will transfer to Valley Link via a new parallel track at Altamont, expanding connectivity into the Byron area.
• Council updates: Student poet laureate recognition deferred to June 16; bicycle commission alternate appointment deferred to July.
• Council adjourned to closed session for Town Manager performance evaluation and labor negotiation.