Regular

April 28, 2026 · 7:00 PM

Berkeley Council orders one‑year fiscal report after audit; unanimously approves HUD plan, West Berkeley rezones

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Meeting Overview

The Berkeley City Council met with Mayor Adena Ishii presiding; a quorum of councilmembers was present (Kesarwani, Taplin, Bartlett, Tregub, O’Keefe, Blackaby, Lunaparra, Humbert). Meetings covered both an April 28, 2026 session and a June 30, 2027 session; city staff, the City Auditor’s office, Planning and Housing staff, and members of the public participated. Topics concentrated on the City’s fiscal condition and near‑term budget process, housing and HUD funding, zoning changes, wildfire resilience legislation, and several community concerns including traffic reconfiguration impacts, accessibility, and market facilities.

Main Agenda Items

  • Auditor’s Financial Condition Audit (FY2016–FY2025): City Auditor Jenny Wong presented an update to the prior audit. Key findings included a persistent structural budget deficit masked by one‑time measures and inter‑fund transfers, large pension liabilities (~$695M net pension liability, ~66% funded ratio), an improved but still monitored OPEB position (~$43M), growing unfunded capital/deferred maintenance backlog (~$1.8B), inconsistent Section 115 trust replenishment, and gaps in multi‑year investment reporting. The auditor made nine recommendations (formal fiscal policies, enterprise fee/reserve policy, restore multi‑year investment reporting, require trust replenishment, develop a multi‑year capital financing plan). Management largely agreed/partially agreed; the Auditor requested a Council‑directed one‑year report back on implementation and Council expressed support for a report back.
  • Budget process and near‑term timing: Mayor and staff reviewed the budget schedule; the City Manager was to present to the Budget & Finance Committee (May 14, 2026) and Council asked for budget referrals by May 19. Discussion noted consideration of a potential $300M general obligation bond and need for a capital financing plan to justify timing and scope.
  • Proclamation: April 2026 declared “American Muslim Appreciation and Awareness Month”; representatives from CAIR and Berkeley Masjid received the proclamation and urged further City actions, including an ethical investment policy.
  • Public comment highlights: housing affordability concerns; complaints about the Bancroft Way/6th Street intersection reconfiguration (loss of parking, requests for notification, concern that turn lanes increase danger to cyclists); small business impacts; accessibility and sidewalk/parking impacts for disabled residents; request for handicap restroom access at the farmers’ market. Council promised staff follow‑up on the intersection and market restroom access.
  • Consent and administrative items: consent calendar adopted; appointment of Pat Temple to the Police Accountability Board; multiple council discretionary donations recorded; Council consolidated wildfire/disaster items and proceeded with a single resolution supporting a package of 13 state wildfire/insurance bills.
  • Housing and planning actions (June 30, 2027): Council held public hearings and unanimously approved the PY2026 HUD Annual Action Plan (CDBG/ESG/HOME allocations ~ $3.4M), approved CMFA bond financing for an affordable project, adopted Title 23 zoning amendments to align with state law, and rezoned 1646 & 1650 Fifth Street to Mixed Use Residential per Planning Commission recommendations.

Decisions Made

  • Proclamation: Adopted declaring April 2026 American Muslim Appreciation and Awareness Month.
  • Auditor follow‑up: Council supported the Auditor’s request for a one‑year implementation report on audit recommendations (no formal ordinance recorded in minutes).
  • Consent calendar: Adopted by roll call; Pat Temple appointed to the Police Accountability Board; discretionary donations entered into the public record.
  • Wildfire legislation: Council consolidated action under the broader resolution supporting a package of 13 state wildfire/insurance bills.
  • Budget process: Directed timeline/deadlines (Manager presentation to Budget & Finance Committee; referrals due May 19).
  • Housing and planning approvals (unanimous): Adopted and authorized submission of the PY2026 Annual Action Plan to HUD; approved CMFA bond financing for the Ephesian project; adopted Title 23 zoning amendments; approved West Berkeley rezoning/general plan amendments for 1646 & 1650 Fifth Street.
  • Follow‑up commitments: Staff to return on traffic/parking and farmers’ market restroom issues. Meeting adjourned by unanimous roll call.
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