CAPITOLA >> The Capitola City Council will hold its final meeting this week before taking a month-long summer recess, which means the agenda is packed full of many items of high public interest.

Most significant of all will be consideration of the city’s 2025-2026 fiscal budget, which the council will review one final time at the meeting, set to begin at 4:30 p.m. Thursday inside City Hall.

The balanced budget includes $21.6 million in total general fund revenue that will be met by $21.5 million in expenses. Financial planners project the city will end the upcoming fiscal year with a general fund balance of approximately $753,000. However, City Manager Jamie Goldstein noted in his budget overview that upcoming increases to CalPERS — the state’s mandated public employee retirement system — will be a major factor in pushing the city’s budget out of balance within two fiscal years.

“The erratic revenue data, uncertain economic stability at the national level, and projected rising pension costs will likely result in very challenging budgetary decisions for several years,” Goldstein wrote.

During a May 29 budget hearing, the council specifically requested that its staff dedicate $150,000 to five projects. These include $10,000 for a flashing crosswalk sign at Park Avenue, $50,000 to Esplanade enhancements, $60,000 for Park Avenue traffic improvements, $10,000 for a playground at Monterey Park and $20,000 for economic development.

Other significant changes in the city’s budget compared to the current fiscal year include new revenue from the countywide parcel tax passed by voters in November known as Measure Q, a gradual reduction in maintenance funding for parking pay stations while increasing promotion of digital options, development of Capitola’s portion of a countywide public safety radio project and incorporation of extra funding left over from Measure S, a public libraries development tax.

The city also plans to consolidate its human resources department and information technology division into the finance department this upcoming year.

Goldstein wrote that the stalled development of the Capitola Mall remains a major opportunity and challenge for city finances and staff will continue to engage with its ownership to help them review the development review process.

Other items

The meeting’s general agenda also includes a final review of the Capitola Wharf Master Plan that will guide future use of the local landmark. A presentation at the meeting will include summaries and key takeaways from recent public input sessions and a series of plans for how to increase the wharf’s long-term economic and climate resiliency.

City leaders will also consider establishing a standard frequency to put leases of city-owned property out for proposals along with an administrative policy outlining the process for the lease of city-owned property.

Construction partners have also submitted documents for building the Treasure Cove at Jade Street Park project, prompting the council to consider approval of the final plans along with renovation of a public restroom and the Capitola Community Center patio.

Finally, Capitola staff have asked the council for permission to pursue a grant from the state’s Sea-Level Rise Adaptation Planning Grant Program in an effort to update sea level rise guidance in the city that was last summarized in 2017.