Mountain View’s mid-year budget projection shows the city operating in the green as anticipated, though among staff there is still uncertainty in budget projections for forthcoming years.
In line with earlier projections, general operating fund revenues are estimated at $196.3 million and expenditures at $194.5 million. The general fund is expected to end the fiscal year with an operating balance of approximately $1.8 million.
Projections for the coming year indicate slimmer margins for growth. With property tax and utility users tax revenues set to decline from the current year’s budget, and additional expenditures to pad city staffing, the preliminary projected operating balance is approximately $453,000 for 2026-2027.
“Unfortunately, nobody has a crystal ball,” said Derek Rampone, the city’s finance and administrative services director. “Some of the risks are unknowns.”
The council voted unanimously to approve the 2025-2026 mid-year budget report during a meeting on Feb. 24. The 2025-2026 fiscal year budget was adopted by the council on June 24, 2025. The mid-year budget status report is intended for the city to monitor and evaluate its finances to confirm it is in line with earlier projections, and to make any mid-year adjustments.
“The projections are concerning, we have to be mindful and prudent and I think the future council will certainly take to heart, but the projections mid-year are excellent,” said Councilmember Lucas Ramirez.
The adopted budget projected $195.7 million in revenues and $194.9 million in expenditures.
But not all current budget projections were rosy. Property tax revenue is currently estimated at $81.7 million, which is $2.5 million below budget. The utility users tax is estimated to be $9.6 million, which is $1.2 million lower than budget.
Rampone also noted that federal market volatility – including inflation and uncertainty surrounding tariffs – added to the incomplete picture for the coming year. He said it remained to be seen how much U.S. consumer prices and spending would be impacted by price escalations due to the tariffs.
New expenditures to the city include a range of staffing-related updates to support the current workforce, but notably a $70,400 appropriation in the Community Development Department for a public art administrator position.
The public art administrator position specifically was seen as a necessary addition to city staffing to align Mountain View’s community development vision with neighboring municipalities.
“I’ve been advocating for that since 2014,” said Councilmember John McAlister. “We got it through the gate sort of.”
