In the coming weeks, the City of Watsonville will begin preparing our fiscal year 2026/27 budget.
When people hear “budget season,” it can sound technical, but from my perspective inside City Hall, it is anything but that. The budget is more than numbers on a page; it reflects our priorities, our responsibilities, and the future we are building together.
At our most recent meeting, the City Council approved the mid-year budget review, providing an important checkpoint on where we stand financially and operationally.
During that same meeting, we also received an update on the progress made toward our Strategic Plan goals: Community Engagement & Well-Being, Economic Development, Efficient & Well-Performing Government, Fiscal Health, Housing, Infrastructure & Environment, and Public Safety.
In just six months, City staff completed 24 initiatives, projects, or activities identified in our work plan to support these Council goals. That progress sets us firmly on the path to addressing the needs our community identified, and I am deeply grateful to our
dedicated staff whose work makes that progress possible.
I am also proud to report that Watsonville is on track to complete another fiscal year with a strong investment in our community. This year alone, we have invested approximately $85 million in community assets, infrastructure improvements, and community programming. Residents may already be noticing the continued installation of our citywide streetlight replacement project, which is expected to be completed in the
coming weeks. These investments improve safety, reduce long-term costs, and enhance the quality of life across our neighborhoods.
As we prepare for the upcoming fiscal year, we will once again present a balanced budget that is comprehensive across all funds and serves as both a financial plan and a policy guide. It aligns with our Strategic Plan while ensuring we live within our means and protect the City’s long-term fiscal health.
The impact of the budget is visible in the places where our community gathers. Next year, we will include the remaining funds to complete construction at Ramsay Park, a project our community has envisioned for more than 20 years. We will also begin restoring the City Plaza to create welcoming public spaces for families and future generations.
At the same time, the budget supports the everyday services that matter most. From repairing streets and maintaining parks to ensuring that police officers, firefighters, and public works crews are there when needed. It also sustains essential services we often take for granted: clean water, safe roads, and reliable streetlights.
We approach this process with both optimism and realism. Costs for materials, contracts, and services remain high, and revenue sources such as sales tax can fluctuate with the broader economy. Meanwhile, our infrastructure continues to age, and
community expectations remain high. Careful planning, disciplined spending, and maintaining healthy reserves are essential to navigating these challenges responsibly.
In the next few months, our City staff and the Council will be looking ahead to prepare a balanced budget that protects core services, invests strategically in our community, and ensures Watsonville remains financially stable and resilient.
Budget season is ultimately about stewardship. The funds we manage belong to you, our community. Our responsibility is to use them transparently and thoughtfully, making decisions that reflect Watsonville’s values and prepare us for what comes next.
