Agenda Item Wording:
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Fiscal Year 2026/2027 & 2027/2028 Strategic Budget Goals - Review the biannual budget process for FY 26/27 & 27/28 and establish the biannual budgetary strategic goals.
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Prepared by: Renee Nagel, Finance & Technology Services Director renee.nagel@visalia.gov 713-4375, Amee Swearingen, Budget Analyst amee.swearingen@visalia.gov 713-4170
Department Recommendation: Review the biannual budget process for FY 26/27 & 27/28 and establish the biannual budgetary strategic goals which will be used to shape the budget.
Summary:
Every two years the City of Visalia adopts a biannual budget. The budget’s role is to translate the strategic priorities into goals and objectives and show how the proposed expenditures, revenues and capital projects are directly linked to achieving these strategic goals. The budget document is a tool that the City uses to align with organizational priorities that Council has provided as a vision for the future.
Background Discussion:
The City is in the second year of the current adopted biannual budget. The new budget must be adopted by Council before the fiscal year 2026/27 starts on July 1 to have the authority to spend throughout the year. The adoption process requires two public hearings and a resolution from Council. There are many benefits to using a two-year budget. Such as, reinforcing the importance of long-range planning, concentrating on budgeting for the accomplishments of significant objectives, creating a proactive budget that provides for stable operations, promotes more spending patterns, and reduces the amount of time and resources in preparing the budget document.
For the past 30 plus years, the City has received the Distinguished Budget Award through the Government Finance Officers Association (GFOA). The award has mandatory guidelines that the City must meet in order to receive it. Receiving the GFOA award documents that the City follows the best budget and financial management practices which is important to bank institutions, bond ratings, etc. In FY 21/22, the GFOA moved towards having the budget document become more focused around the City’s strategic goals and having more citizen input in shaping the budget. To meet these requirements, the budget timelines are advanced and shortened to allow for more citizens input and more detailed budget explanation at Council meetings. These requirements must be met to receive the Distinguished Budget Award.
Biannual Budgetary Goals:
The budget document includes the City’s mission statement and core values. These should be used to help shape the budget and Councils goals. Below is the approved mission statement and values:
Mission Statement - Our mission is to enhance the lives of Visalians by providing services and solutions that create a vibrant and connected community.
Values - COV
Community - We care deeply for our community and strive to provide transparency and equitable services in an approachable and friendly way.
Opportunity - We are dedicated to enhancing Visalia by providing opportunities for economic and social development.
Vibrancy - We embrace unique perspectives and backgrounds to create a vibrant and welcoming city.
The budget goals are used to help with budgeting operations and capital to ensure that the City is maintaining services levels and meeting the needs of the community. Below are the current budget’s strategic goals and staff recommends adopting similar goals for the upcoming FY 26/27 & 27/28 Budget.
Quality of Life
• Maintain quality of life for the citizens of Visalia
• Continue City efforts to reduce homelessness while collaborating and advocating regionally as appropriate.
• Provide diverse housing through a variety of programs and policies for all income levels
• Provide diverse community experiences and personal enrichment for all ages
• Continue to improve parks, recreational amenities, open space, and trailways for a connected community
Fiscal Strength
• Continue to maintain the City’s good fiscal health and sustainability
• Adopt a balanced budget
• Continue to maintain the General Fund Emergency Reserve at 30% of operating expenditures.
Infrastructure & Growth
• Plan for the development of future infrastructure
• Maintain, improve, and replace assets and infrastructure within the City
• Ensure safe, reliable infrastructure that benefits the community
• Seek grant funding to maintain and expand City infrastructure to meet the community's needs
• Manage, maintain, and enhance the City’s roadways to provide a safe and effective transportation system
Organizational Excellence
• Provide excellent public service that is efficient, accessible, and responsive to all
• Provide high-quality essential City services
• Attract and retain a talented, diverse, and engaged workforce across the entire City organization
• Utilize and add technology to increase efficiencies for City services
• Continue to make improvements that equip the City to deliver excellent services to the community
Economic Vitality
• Promote a vibrant economy that provides an equitable opportunity for all
• Facilitate programs to develop, attract, and retain businesses
• Foster economic development in both commercial and industrial
Icons are used for each budget goal and are placed throughout each department’s budget section to show how they are meeting the goals set by Council. The icons and the goals are attached in Exhibit 1.
Citizen’s Survey:
In the past, Council used the Citizens Public Opinion Survey to ensure the budget goals meet the community needs. This year’s survey was completed by FM3 in August 2025. The City received 556 surveys responses and the results are being presented tonight. The conclusions from the survey provided align with our current strategic goals. According to the survey, 92% of the respondents feel that Visalia is a fair place to live with 60% saying that Visalia is an excellent/good place to live. In addition, when it comes to City services, 72% of respondents were very or somewhat satisfied. Overall, citizens seem satisfied with the customer service and the services the City is providing. After reviewing the survey results and the proposed budget goals, staff believes these goals reflect the major items identified in the survey.
Budget Process
It is staff’s intent to bring a budget that continues the level of service provided to the citizens and incorporates Council’s priorities. Staff has currently started the budget process with all the departments as outlined in Table 1, Budget Process Calendar. Staff will be presenting the budget which includes the six-year capital plan over a five-month period, starting in February 2026 with the adoption in June 2026.
Table 1
Budget Process Calendar
Fiscal Impact: None
Prior Council Action: None
Other: N/A
Alternatives: None
Recommended Motion (and Alternative Motions if expected):
recommendation
Move to approve the budget goals for the FY 26/27 & 27/28 biannual budget:
1. As staff recommended in the report
Or
2. Per Council’s modifications of …
Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 11/3/2025
Attachments: Budget Goals and Strategic Goals Presentation