CAPITOLA >> The first in a series of hearings that will unpack Capitola’s proposed budget for the coming fiscal year are set to start this week and continue later in the month.

At its 6 p.m. meeting Thursday, Capitola City Manager Jamie Goldstein and finance staff will unveil the proposed 2025-2026 fiscal year budget, complete with a projected end-of-year general fund balance of approximately $688,590.

The budget, staff explained in the agenda summary, is structurally balanced but current financial forecasts indicate it will start to unbalance two years from now, primarily due to increases in the city’s contributions to CalPERS — the state’s mandated public employee retirement system. The budget also takes cues from the city’s five-year Strategic Plan that was adopted in March, along with the priorities outlined within it: accountable government, attainable housing, community safety, economic opportunity, healthy families, community, environment and sustainable infrastructure.

While the budget before the council will be balanced and designed to maintain local services, city officials noted they’re keeping a close eye on long-term budgetary estimates given the unpredictable CalPERS costs and potentially volatile economy in the years ahead.

Key topics expected to receive significant attention at Thursday’s budget discussion include the $200,000 the city will start to get annually due to passage of Measure Q last November, excess revenue expected through Santa Cruz Public Libraries Measure S, revised parking pay station strategies, dedicated funding for a countywide public safety radio project currently in development and a consolidation of the city’s Human Services and Information Technology departments.

After Thursday’s meeting, the next budget-focused meeting has been set for May 29.