Yuba City adopted its fiscal year 2026-27 operating budget and capital improvement plan on June 16 after staff said a revised spending plan reduced the projected general fund deficit from about $7.8 million to roughly $2.2 million.

City Manager Robert Bendorf told the council the pared-down budget leans on position reductions, one-time funds and a tighter focus on public safety and infrastructure. The plan totals about $126 million citywide, with about $62 million in the general fund, according to the June 16 council meeting summary.

The budget presentation said citywide allocated positions would drop from about 350 to 330. It also outlined roughly $39 million for police and fire, about $3.7 million for community services, and other capital work tied to roads, parks and utility infrastructure.

The council also adopted new general fund contingency and reserve policies. Staff said the contingency policy sets aside $500,000 for emergency or unplanned general fund spending, while the reserve policy creates a separate reserve fund with a 15% target.

The budget action came during a meeting that also included approval of a wastewater outfall diffuser contract amendment and a $2,500 sponsorship for the Walk to End Alzheimer’s. The city attorney reported no-merit rejection of a liability claim in closed session.

A fuller breakdown of which positions were eliminated or left vacant was not included in the summary available for this report.