Escalon council adopts FY 2026–27 budget; debate set over $700,000 unassigned funds

The Escalon City Council voted to adopt the fiscal year 2026–27 proposed budget, a roughly $6.7 million spending plan, after a lengthy discussion about how to allocate roughly $700,000 in unassigned or surplus funds.

Council members approved the budget on a recorded voice vote after presentations from finance staff that described a conservative revenue forecast, a one-page budget summary, and an emphasis on public safety funding and a $350,000 annual CalPERS unfunded actuarial liability (UAL) paydown. Finance staff said Measure P currently represents about 12 percent of the city's revenues and that roughly 58 percent of the proposed budget is devoted to public safety.

Council debate focused on competing uses for approximately $700,000 described during the meeting as $327,000 of general/earmarked funds plus an approximate $400,000 surplus. Council member Engel proposed a detailed allocation plan that would spread the money across a rainy-day savings account, parks beautification, police retention incentives, business development, CalPERS paydown, debt reduction and a significant investment in infrastructure at the Liberty Business Park to spur long-term sales‑tax growth. Other council members urged caution, asking for a concrete plan and assurances of measurable return before committing large capital sums to infrastructure.

Several members and staff emphasized that measured economic development, debt reduction and targeted infrastructure investment are complementary strategies. The council directed staff to prepare a focused follow-up discussion and a public workshop to gather community input before locking any large capital commitments.

The council instructed the city manager and development staff to prepare specific proposals and return to the council with options, cost estimates and a recommended prioritization timeline. City staff indicated the budget adoption would not be held up by the surplus allocation conversation and that the council may adopt budget line items while continuing a separate process to designate unassigned funds.

What’s next: staff will organize a public workshop and prepare program-specific proposals for council review, including a marketing/feasibility plan for Liberty Business Park infrastructure spending before any major allocation is approved.