TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Nicky Petroff, Senior Management Analyst
SUBJECT:Title
Consideration of an Update Regarding the Fiscal Year 2026-2027 City Council Work Plan (No Budget Impact) (City Manager Mirzakhanian)
APPROVE
Body
_________________________________________________________
RECOMMENDATION:
Staff recommends that the City Council approve an update regarding the Fiscal Year 2026-2027 City Council Work Plan.
FISCAL IMPLICATIONS:
There are no fiscal implications associated with the recommended action. However, specific Work Plan items may have associated fiscal implications, which may require expenditure approvals at future City Council meetings.
BACKGROUND:
Based on past practice, the City Council develops a Work Plan document that outlines key priorities and projects, beyond daily operations, that City Council directs staff to focus on over a specific period of time (typically the fiscal year) and that may require many hours of staff time or substantial financial resources, include high community involvement or community interest, or have a significant impact on City operations.
The City Council Work Plan is reviewed annually in February as a General Business item, providing the City Council an opportunity to discuss priorities and provide direction regarding the addition or removal of projects. Staff also provides Work Plan updates in May and October as Consent Calendar items to inform the City Council and community of progress on existing projects. The City Council may add projects throughout the year, with those changes reflected in the subsequent Work Plan update.
The City Council Work Plan features priority levels on projects, funding sources, and department(s) and commission(s) involvement. Priority levels are organized in the following categories with the following definitions:
A - Critical
B - Important
C - Normal
Staff also utilizes a Department Work Plan document that consists of new, ongoing, or State-mandated efforts to which staff is dedicating significant time and resources, and are not on the City Council Work Plan but are required for regular operations. The document is not intended to showcase each department’s full day-to-day operations.
DISCUSSION:
The City Council’s Fiscal Year 2026-2027 Work Plan was approved at the May 19, 2026, meeting and reflects the City Council’s priorities for the coming 12 to 18 months, including initiatives that may extend beyond that timeframe. The updated Work Plan reflects the current project status, completed items, pending actions, and target completion dates for each of the 17 Work Plan items (Attachment).
At the February 24, 2026, City Council meeting, the City Council directed staff to explore formatting options to better distinguish between projects anticipated to be completed within the fiscal year and those requiring longer-term implementation. In response, staff introduced three anticipated timeline categories as part of the May 19, 2026, Work Plan approval: FY 2026-2027 Priority Projects, Multi-Year Initiatives, and Ongoing Programs or Policy Initiatives. These categories are color-coded throughout the Work Plan and incorporated into a condensed overview table to provide a clearer understanding of anticipated project timelines and priorities.
The FY 2026-2027 City Council Work Plan includes initiatives across several City departments, many of which require collaboration between multiple departments and commissions. To further illustrate the level of coordination, staff has included a Department and Commission Involvement Matrix (Attachment).
In addition to the City Council Work Plan, staff has also provided the Department Work Plan (Attachment), defined above, to showcase additional items that staff is working on that are not on the City Council Work Plan.
City Council will discuss and consider the upcoming Fiscal Year 2027-2028 Work Plan at a City Council meeting in early 2027.
Proposed Changes To Work Plan:
The concept of a “Governance Policy” was placed on the work plan several years ago. In reviewing drafts from other cities, staff identified significant overlap with the City Council Orientation Manual and other handbooks provided to Councilmembers. To avoid duplication and ensure the information remains current, staff is recommending the City Council Orientation Manual, provided to the City Council every two years, be supplemented with information contained in those other cities’ policies. Accordingly, staff recommends that a separate “Governance Policy” be removed from the work plan.
In 2025, staff initiated an update to the City’s Business License Tax and developed a modernization plan focused on simplifying, clarifying, and modernizing the tax code, establishing a fair and equitable tax structure, and supporting the City’s long-term fiscal sustainability. Following a financial analysis and consideration of various tax structures and policy options at multiple public meetings, on September 15, 2026, City Council directed staff to continue the initiative with the goal of placing a measure on the November 2028 ballot. As a result of this direction, the “Business License Tax Update and Modernization Plan” is being added to the City Council Work Plan.
CONCLUSION:
Staff recommends that the City Council approve the update regarding the Fiscal Year 2026-2027 City Council Work Plan. If approved, staff will modify the Work Plan to add the “Business License Tax Update and Modernization Plan” as a new Work Plan item and remove the separate “Governance Policy” item, with the applicable content incorporated into the City Council Orientation Manual. The Fiscal Year 2026-2027 City Council Work Plan will be updated accordingly.
PUBLIC OUTREACH:
After analysis, staff determined that public outreach was not required for this issue.
ENVIRONMENTAL REVIEW:
The City Council’s Approval of the FY 2026-2027 City Council Work Plan is not a “project” as defined under Section 15378 of the State California Environmental Quality Act (CEQA) Guidelines because it does not have a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA, and no environmental review is necessary. However, specific work plan efforts may be subject to CEQA, and CEQA review will be conducted by staff as applicable to each item, and as required by State law.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Fiscal Year 2026-2027 City Council Work Plan (17 Items)
2. Department and Commission Involvement Matrix
3. Department Work Plan Items