Salinas approves two-year budget with Amazon revenue in the mix

Salinas approves two-year budget ahead of July 1

Salinas City Council unanimously approved the city’s FY 2026/27–2027/28 biennial budget on June 16, giving the city a two-year spending plan before the new fiscal year starts July 1. The budget documents put total operating and capital spending at about $323.9 million in year one, with a $196.2 million General Fund.

City staff say the budget closes an initial General Fund shortfall of $13.6 million in year one and $14.4 million in year two by using new or increased revenues, a strategic draw on fund balance, and Police Development Impact Fee money to help cover police building debt. The plan also adds a net 18 positions in year one and keeps funding for core services such as public safety, parks, libraries and community development.

Amazon revenue helps the math, but it is still a forecast

One of the biggest assumptions is the Amazon facility under construction in Salinas’ future growth area. The city says the site is expected to begin operations in winter of FY 2026/27, with projected revenue of $4 million in year one and $6 million in year two. That is real budget help, but it is still projected income from a project that is not fully online yet.

The longer-term risk is Measure G. The budget says Salinas could face a revenue loss of more than $40 million in 2030/31 if the 1-cent tax sunsets without renewal. Council already voted on June 2 to place Measure G renewal on the Nov. 3, 2026 ballot, so residents will likely hear more about it as the election approaches. For households and businesses, the takeaway is simple: the city’s near-term budget is balanced, but the next few years still depend on growth, fee policy and voter decisions.

Sources

• City of Salinas — FY 2026/27–2027/28 biennial operating budget PDF
• Monterey County Now — Salinas City Council approves a $320 million budget