Vacaville Council Approves Six Budget Add-Ons 6-1 as Deficit Looms

Vacaville's books came in better than feared, but staff told the City Council on Nov. 10, 2026 that the structural deficit isn't closing. The council approved six budget augmentations on a 6-1 roll call, including $127,000 for a state truck-route mandate the city must fund itself. Neighbors also lined up to oppose a proposed 14-person boarding house.

---

• Six budget augmentations pass 6-1, with Councilmember Roy Stockton dissenting
• Reserves projected to drop to 15% in FY28, below the city's 16%–25% policy
• $127,000 unfunded truck-route mandate prompts talk of letters to state legislators
• Neighbors oppose a 14-occupant boarding house, citing CC&Rs and no notice
• Volunteer Poet Laureate approved on the condition that it costs the city nothing

---

Better Year-End, Same Structural Gap

Why it matters: Vacaville ended FY26 ahead of projections. Staff still forecast reserves falling below the city's own policy floor within two years, which sets up debates over cuts and fees.

Where things stand: Preliminary, unaudited FY26 revenues beat the May projection by "about a 3% or $3 million increase," said the city's Budget Manager. Sales tax, parks and recreation fees, and ambulance revenue drove the gain. The general fund still ran a $5.8M deficit. Reserves ended at $49M (32%), compared with $43M projected.

Measure M, the local sales tax, brought in $25.8M. This year it covers about $13.2M in park maintenance, license plate readers, public safety equipment, vehicle replacement and fire personnel. First-quarter FY27 sales tax rose 22%, which consultant HDL tied to consumer spending, tax refunds, fuel prices and tourism. Staff still project an $8.6M gap this year. That forecast assumes sales tax falls about 4% this year and 1% next, property tax grows 7%, radio replacement costs $3M in FY28, and unfunded items cost $2.5M a year.

"We still have that structural deficit. Measure M helps reduce it, but that gap still exists," said the city's Finance Director.

The six requests:
- $28,616 a year for DocuSign contract management software
- $15,968 a year for short-term rental monitoring software, although short-term rentals are currently prohibited and an ordinance would come first
- $20,000 one-time for federal grant litigation, City of Fresno v. Noem
- $23,000 for Fire Station 71 HVAC and smoke remediation
- $127,000 for truck routes and planning documents
- $12,400 for a structural report on the Graham Aquatic Center slide foundations

Software costs begin in FY28. The truck-route work is required under AB 98 and SB 415. The deadline is Jan. 1, 2028, and penalties run up to $50,000 per six months. Full compliance costs are unknown. "This is currently an unfunded mandate," said Shelby Millerin, Assistant Director, Finance.

The other side: Mayor John Carli pushed for letters to State Senator Cabaldon and Assemblymember Wilson, with other cities co-signing. "It is the law, but I think they need to hear from us," he said. An unidentified councilmember suggested also writing to the League of Cities.

Stockton questioned the pool spending: "I'm a little nervous about spending any money on the pool if we're not sure if it's going to remain open." He also asked whether the county-led radio upgrade could be delayed regionally. Staff said Vacaville had not set money aside for that upgrade and that the city's exact share is pending.

Councilmember Gregory Ritchie II asked staff to model a revenue shortfall. "So we better be prepared to show people if we miss by 50%, this is our revenue," he said.

Public commenter Cass Padgett criticized undefined abbreviations on the Measure M slide and questioned a $450,000 difference between two lines.

Decisions and stakeholder impacts: The augmentations passed. For: 6 (Ritchie, Chapman, Fremouw, Wylie, Vice Mayor Silva, Mayor Carli). Against: 1 (Stockton). Absent: 0. The vote funds fire, legal and compliance needs. Parks and events are now under scrutiny: staff put parks cost recovery at about 41%, and Merriment on Main vendors pay $165 for non-food booths or about $270 for food booths, with 60 applicants.

What's next: Staff plan a special-event cost review in late December or early January and a mid-year budget update in February.

---

Neighbors Fight Boarding House Conversion

Why it matters: Four residents said a single-family home could house up to 14 people. They argued that neighbors have little recourse and received no notice.

Where things stand: The first neighbor to speak said a Bay Area realtor owns the house, already rents to boarders and wants to turn the family and living rooms into bedrooms. He said the neighborhood's CC&Rs exclude boarding and lodging, and he raised parking, noise and traffic concerns. Neighbor Brons Golden said the owner already runs a business there, has brought in tenants from Travis Air Force Base and has submitted conversion plans to the city.

A neighbor with young children said the change would affect three courts. She said residents received no notice of permit or zoning changes and worried about transient residents and added cars. A longtime resident said they moved back for the neighborhood's safe, quiet streets.

Decisions and stakeholder impacts: The council took no action, since the item was not on the agenda. Mayor Carli asked staff to follow up and get the address.

What's next: Residents will be watching how staff handle zoning, permitting and CC&R questions. CC&Rs are private deed restrictions, generally enforced separately from city zoning.

---

Poet Laureate Approved, With No Money Attached

The basics: The post is unpaid and open to adult residents, with two-year terms. The poet laureate would appear at up to three city events a year, lead one free community poetry program and file an annual summary.

Where things stand: Candidates are screened by an Arts Advisory Committee and Parks and Recreation Commission subcommittee, then the commission. The mayor nominates, and the council ratifies. Recreation Manager Melody Land said the program is meant to be "no cost to the city." Staff discussed an honorarium but left it out because of the city's finances, and no travel is budgeted. The program falls under the city's Arts and Culture Master Plan.

Councilmember Jeanette Wylie, who raised the idea, said she was "really excited to see it continue going forward." Stockton set a condition: "I'm inclined to support it, but not if there's going to be any financial impact at all."

Decisions and stakeholder impacts: Stockton moved approval on the condition that no money, overtime or new funding go to the program. City Manager Savita Chaudhary confirmed "there's no financial impact at this time." The motion passed by voice vote; no tally was stated. Any future stipend would require a new budget decision.

---

Minor Items

• Bay Delta Plan: On Oct. 29, the State Water Board approved a plan update, including the Healthy Rivers and Landscapes Program, that the city supported. Implementation is expected no later than October 2027.
• Sewer laterals: A former city sewer worker objected to homeowners now covering lower sewer lateral repairs, which can exceed $20,000. The Utilities director will meet with him.
• 131 Bush Street: A resident said planning staff has not acted on alleged code violations he reported. The mayor said he will raise the issue with staff.
• Spending criticism: Nils Carlson cited Measure V's failure and urged a halt to Brown Street construction.
• Consent calendar: Items 9A–9E passed by voice vote. Councilmember Sarah Chapman seconded.

---

Looking ahead: Small businesses can bring plans to the city's Tenant Improvement Tuesday for same-day permits. The council adjourned in memory of former Deputy City Clerk Carol Yount.