Council discuss CDBG, budget outlook
Vacaville officials on Tuesday outlined plans to direct federal Community Development Block Grant funding toward youth programs, neighborhood centers and public facility repairs, while also hearing a warning that the city could face major budget deficits within the next five years.
Housing Services Director Tamara Colden told the City Council that the Community Development Block Grant provides annual grants with federal funds to communities nationwide. Vacaville became an entitlement city for CDBG funds in 1988 and now receives about $500,000 annually from the program.
The city's allocations are based on a formula that considers population, poverty, and housing levels in the community. Colden said the city's CDBG goals are set on a five-year cycle by the city council, and the city submits an Annual Action Plan to the Department of Housing and Urban Development. Activities may benefit low-moderate income persons, prevent "slums or blight", or respond to urgent needs.
For the 2025-2030 cycle, the plan identifies its top priorities as youth-focused nonprofits, public facilities and infrastructure repairs, parks and neighborhood centers, and Program Oversight and Compliance through planning administration. The plan will be submitted no later than June 3.
City staff suggested spending 20 percent of the funding on planning and administration, 15 percent on youth development, including Vacaville Neighborhood Boys and Girls Club and Leaven Kids, and 65 percent on projects, including the Trower Center, Mariposa Center, Vacaville Social Services Center and debt service on other projects.
Director of Finance Ken Matsumiya provided the City Council with a budget update presentation. He said the budget serves as an estimate of income and expenditures, a financial plan for the city, and a way to establish funding levels. Budgets reflect the goals of the council, he said, and can change throughout the fiscal year. The council's role is to affirm a vision and purpose and to collaborate with staff on action items and budget adoption, while the staff's role is primarily to operate the budget day to day.
Matsumiya said every city has a general fund, the broadest and most flexible of all options, which functions like a "main city checking account" and covers 53% of Vacaville's budget. The city also maintains Special Revenue Funds like Landscape Maintenance District Assessments, CDBG, Gas Tax and community development funds, which account for 21 percent of the budget. Other government funds include Debt Services Funds and Capital Projects Funds, Internal Service Funds, Enterprise Funds and Fiduciary Funds. Enterprise Funds account for 24 percent of the city's budget, and two percent is controlled by the successor agency.
"All of these funds have their own rules and regulations," he explained. "And so one of the confusing things that came up with government is that there is this perception that the budget and funding is all kind of one big pot of money. But, because of fund accounting, you can't simply or easily move funding from one fund to another to cover any shortfalls."
Measure M revenue falls under the general fund, staff said, and accounts for 14 percent of general fund revenue each year. 32 percent of general fund revenue comes from property tax, 19 percent from sales tax, 17 percent from other taxes, nine percent from department charges and fees and nine percent from other revenue sources.
Public Safety spending consumes over two-thirds of General Fund expenditures annually, with the Police Department totaling 38 percent and the Fire Department totaling 29 percent. Public Works consumes about 10 percent of the budget, Parks and Recreation consumes about seven percent, and city administration consumes the remaining 16 percent.
City staff created general fund forecast options both with and without cost-saving measures. Even with previously proposed cost savings, the city's reserve fund will shrink to just two percent of its current budget. Without cost-saving measures, the city will reach a $11 million deficit after Fiscal Year 2029 and a $23 million deficit after Fiscal Year 2030.
Copyright 2026 Tribune Content Agency. All Rights Reserved.