Dublin Projects $10.2M Surplus but Warns of Rising Costs and Property Tax Hit

Dublin's City Council got its first look at a two-year budget that projects healthy surpluses on paper — but council members weren't buying the optimism, warning that contract costs are outpacing revenue growth and urging staff to act as if the city is already in deficit. The council also reviewed a $79.5M capital improvement plan, heard residents plead for a dangerous gravel path to be paved, and approved a fiber optic master plan to future-proof city technology.

• Council previews two-year budget projecting $10.2M surplus in Year 1, but Prop 8 property tax reductions and 6% contract cost growth threaten to close the gap fast

• $79.5M capital plan reviewed with council pressing staff on which projects can be deferred; Village Parkway reconstruction ($40M) and Dublin Boulevard extension ($126M) loom large

• Summerglen residents and a 10-year-old describe injuries on an unsafe gravel path connecting their neighborhood to Emerald Glen Park; staff confirms meeting being scheduled

• Business owner warns smash-and-grab crimes are back, with one shop hit 14 times; pushes council for citizen patrols

• Fiber optic master plan approved to design a citywide high-speed internet ring and replace AT&T cloud reliance

• Strategic plan milestones highlighted, including Dublin Boulevard extension agreement with Livermore and mobile crime camera deployment

Budget Surplus Looks Good on Paper — Council Says Act Like It's Already Gone

Dublin's preliminary two-year general fund budget landed with a headline number that would make most cities envious: a $10.2 million surplus in FY 2026-27 and $6.4 million in FY 2027-28. But the four council members present (with Vice Mayor Kashef Qaadri absent) spent far more time interrogating the risks than celebrating the cushion.

The basics: The budget projects $136.4 million in revenue against $126.2 million in expenditures in the first year. Property tax — 60% of the general fund — is forecast at 3% growth, buoyed by new homes at Francis Ranch and Dublin Crossing. Sales tax clocks in at $27.9 million, though auto dealerships, which generate 40% of the city's sales tax revenue, are softening. Interest revenue is dropping 28% — about $3 million — because the city is spending down $67 million in capital improvement reserves and interest rates are falling.

Why it matters: The surplus masks a structural tension: expenditures are growing at roughly 6% annually while property tax revenue is growing at 2% or less. Contract services — police, fire, and facility maintenance — make up 60% of the budget and are climbing fast: police costs up 6.1%, fire up 8.2%, and maintenance costs up 11.6% due to new facilities including the Dublin Arts Center, Wallis Ranch Community Park, and Iron Horse Nature Park. Three new staff positions are proposed (environmental coordinator, public works maintenance coordinator, and recreation supervisor), and the city's three Behavioral Health Unit positions will transition from expiring ARPA federal funds to the general fund by the end of FY 2026-27.

Council Members Sound the Alarm

Where things stand: Council members used the presentation as a platform to push staff toward fiscal discipline, with each raising distinct cost concerns.

Vice Mayor Jean Josey zeroed in on personnel cost projections, warning that the 3% cost-of-living adjustment baked into the budget understates real pressures.

"All of these things are going up beyond the 3% that we budget for COLA. And so in the out years I would expect that at some point we're going to have a hit to personnel costs," she said.

She also challenged the internal service fund's projected 10% annual growth over the ten-year forecast, stating no other department projects a 10% increase per year for 10 years.

Councilmember Michael McCorriston framed the math bluntly.

"On average, we're going up 6%. Our property tax, which is 60% of our budget, is going up perhaps 2%, perhaps less. So it widens that gap, which I'm concerned about," he said.

He pressed staff on controlling contracted services, which consume 60% of the budget.

Councilmember John Morada delivered perhaps the evening's sharpest warning:

"I noticed that everybody on this council was elected during a time of surplus. The last time we had a deficit was during the Great Recession. I just say it's an observation that I think at some point we stop using the idea that we have a surplus and behave like we don't."

The other side: City Manager Colleen Tribby said her conversations with the police chief focus on investing in technology to reduce headcount needs over time. She also flagged that AI-powered plan-check tools are being evaluated. Finance Director Jay Baxa noted a long-term positive: Dublin has become a majority Public Employees’ Pension Reform Act (PEPRA) city for CalPERS pension purposes — meaning newer employees are on a less costly pension tier — which will reduce the city's long-term liability.

Property Tax Wildcard

Tribby warned that the county assessor may impose countywide Prop 8 reductions to assessed property values — a mechanism triggered when market values fall below Prop 13 base values. The potential revenue hit has not yet been quantified and will need to be factored into the final budget.

What's next: Budget adoption is scheduled for June 2. Staff was directed to explore grants for the Behavioral Health Unit, pursue cost controls on contracts, and incorporate Prop 8 property tax estimates into the final numbers.

$79.5M Capital Plan: Council Asks What Can Wait

Capital Improvement Program Project Manager Michael Boitnott presented a five-year capital improvement program totaling $79.5 million, with $13 million funded in the first year and a back-of-book list of future projects totaling $205.3 million. The plan spans streets, parks, and public facilities — but council members questioned whether the city can afford it all given the budget picture they had just reviewed.

Why it matters: Two projects dominate the long-term horizon: Village Parkway reconstruction at $40 million (with complete streets improvements) and the Dublin Boulevard extension at $126 million [95% designed, with both California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA) review completed]. Near-term spending focuses on the Dublin Arts Center interior and exterior completion, restroom replacements at three parks ($1.98 million), annual street resurfacing covering 3.7 million square feet, and the Wave pool plastering ($500,000).

Where things stand: Councilmember John Morada questioned nine specific projects in detail, probing whether items like a $500,000 corporate yard wash pad, $3.13 million in waste enclosure upgrades (50% grant-funded), and $500,000 in unfunded city entrance signs could be deferred. Vice Mayor Jean Josey asked about the scope of the Emerald Glen ball field renovation ($400,000, a joint effort with Dublin Unified School District for Little League relocation) and the cause of Gleason Bridge soil settling under investigation.

City Manager Colleen Tribby pushed back, defending the current two-year plan as focused on essential repairs.

"I don't think in the next two year funding plan that there are things that really are nice to haves. For the most part we're addressing major repairs that are needed and we're making our facilities more usable," she said.

She acknowledged some projects — including Colp Park improvements and library tenant improvements — have already been pushed beyond the current window.

On the Dublin Boulevard extension, Deputy City Manager Hazel Weatherford confirmed no technical details had been received from residents who proposed an alternative design during public comment; the current 95% design stands.

Decisions: The council approved the one action item — a budget change advancing funding for the Green Stormwater Infrastructure project — on a 4-0 vote (For: 4, Against: 0, Absent: 1). Full CIP adoption is scheduled for June 2 following Planning Commission review.

Summerglen Residents Plead for 45-Foot Path to Be Paved

A roughly 45-foot gravel path connecting Persimmon Path to Gleason Drive — the primary shortcut to Emerald Glen Park for about 1,000 households in the Summerglen neighborhood — became one of the evening's most emotionally compelling moments, as three residents described injuries and safety barriers.

Jyoti, a 15-year Summerglen resident, told the council that elderly neighbors with walking sticks, a retired Marine caring for a sick wife, and children all struggle with loose gravel that turns to mud when it rains. She said bollard gates at the path are sometimes locked, forcing people onto busier streets.

Pahi, a 10-year-old student at James Doherty Elementary School, described falling and scraping her hands and knees on the path. Melissa Picachi, an experienced trail runner, said she too tripped face-first despite years of running on rough terrain.

Staff confirmed that a meeting with affected residents has been scheduled to discuss the specific improvement request. Councilmember John Morada had previously met with residents about the issue.

Business Owner Sounds Alarm on Retail Crime

Mike Grant, a longtime Dublin resident and business owner, used public comment to escalate his push for citizen patrols to combat what he described as a resurgence of smash-and-grab crimes.

Grant described a wig shop on the east side of town that has been hit 14 times but never filed insurance claims for fear of policy cancellation — absorbing $25,000 to $30,000 in losses each time. He criticized the council for not acting on his earlier proposal, noting that neighboring Danville and Pleasanton already allow citizen patrols.

"At what point does the city have to start paying for their windows? It's your job, the four tonight, to pass policies here and protect these businesses in town," he said.

Grant warned that 10 to 15 businesses could close, eroding Dublin's sales tax base at a time the budget already faces revenue pressures.

Grant returned during the budget discussion to challenge subsidized sports field fees.

"The fields being subsidized. $3. You got to be kidding me. That needs to go up to 50 bucks an hour," he said, arguing the city is leaving $1.3 million on the table.

Fiber Optic Master Plan Approved to Build Citywide Internet Ring

Councilmember Michael McCorriston pulled the fiber optic network master plan from the consent calendar to understand how it fits the city's technology roadmap. Chief Information Security Officer Steve Windsor explained the project has been in the capital plan for two to three years and will inventory existing legacy copper and fiber infrastructure, create a GIS layer map, interview city departments, and produce a design for a high-speed fiber ring around the city.

"Until human beings find something that's faster than the speed of light, when we put in fiber, we're future-proof for the foreseeable forever," Windsor said, relaying advice from consultants.

The fiber backbone will enable modern traffic signal operations and allow Dublin to stop routing city data over privatized AT&T cloud networks.

Councilmember John Morada asked about workforce implications. Windsor said contracted talent through Questys Lanlogic provides broader capabilities than internal staff for this type of specialized work.

Decisions: Approved 4-0 by voice vote (For: 4, Against: 0, Absent: 1).

Minor Items

• Consent calendar approved 4-0, covering routine contracts and agreements (Items 5.5 and 5.6 were pulled for separate discussion above).

• American Muslim Appreciation and Awareness Month proclamations presented to the Muslim Cultural Society of Dublin, CAIR-SF Bay Area, and the Muslim Community Center East Bay. Youth speaker Yusuf Ahmed described a cross-school Eid food drive organized by MSAs from Emerald, Dublin, and Fallon schools. Sema Bada of the Muslim Community Center East Bay described the center's decade-plus role in food pantry services, refugee resettlement, and mental health support.

• Arts, Culture and Creativity Month proclamation presented to the Dublin Arts Collective. Julia Tom Tonya of the collective formally asked the council to investigate why "Cultural" was dropped from recent references to the new facility, urging the full name "Dublin Cultural Arts Center" be restored.

• New employee introduction: Andrew Powell, assistant civil engineer in Public Works, was introduced to the council.

• Strategic plan progress: Staff reported key milestones including Dublin and Livermore agreeing on a phased approach for the Dublin Boulevard extension, deployment of mobile camera trailers with license plate readers for real-time crime prevention, completion of Phase 1 of the Iron Horse Trail open space and nature park (approximately 1,700 feet of new multi-use trail), and initiation of Prop 218 proceedings for a new Streetlight Assessment District. The Western Dublin TIF remains on hold after the Downtown Dublin project applicant pulled their application; the Eastern Dublin TIF was delayed by Public Works staffing shortages, now resolved.

• Public commenter Brent Sanji requested the council add an agenda item to remove the commemorative flag section from Dublin's flag policy, calling the provision controversial since 2019.

• Public commenter Chuck Patton, a 40-year Dublin resident, asked whether the council is aware that BART plans to close the West Dublin/Pleasanton station and inquired about plans for vacant former Toys R Us, Burlington Coat Factory, and Hobby Lobby buildings.