Solano County Grand Jury • 2025-2026 • Agency Response

Finding 1 Benicia’s real-estate-based revenue projection model has not held true over time and has

Published: September 16, 2025 4 pages
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Findings and Recommendations 4 findings

F1
Benicia’s real-estate-based revenue projection model has not held true over time and has resulted in expenses exceeding revenue for many years. RESPONSE TO FINDING 1 The respondent partially disagrees with the finding. The revenue projection models used in the City of Benicia are not real-estate based projection models. Revenue projection models have included all revenue sources and included considerations for increased revenue in sales tax, transient occupancy tax, utility user tax, charges for services and other miscellaneous taxes and fees. The City of Benicia has a biennial budget adoption process that considers available resources with projected expenditures and there are some years when expense reductions have been made to align revenue and expenses. In other years, use of one-time funds such as undesignated fund balance, reserves, and federal grants were used to balance the budget. STEVE YOUNG, Mayor MARIO GIULIANI, City Manager Members of the City Council LISA WOLFE, City Clerk KARI BIRDSEYE · LIONEL LARGAESPADA · TERRY SCOTT · TREVOR KENNETH C. PAULK, City Treasurer MACENSKI, Vice Mayor Docusign Envelope ID: BCACBD23-BFD0-40A4-92D4-1223B077824A
Related Recommendations (1)
R1
The Benicia City Council prioritize and mandate the creation of specific plans for construction of mixed-use buildings on undeveloped land beginning in the next fiscal year. An expected requirement to include affordable homes in any new development could reduce the maximum possible revenue, but it still would increase the tax base.
F2
Benicia needs to increase revenue from sources other than sales tax. Benicia’s sales tax is already the highest of any city in Solano County and thus is an unlikely source for additional income. RESPONSE TO FINDING 2 The respondent agrees with the finding.
Related Recommendations (1)
R2
Benicia City Council explore and implement, during the next fiscal year, other means to increase revenue, such as: a) Increase marketing of Benicia as a tourism destination by adding more festivals, faires and other events. b) Pursue methods to attract big box stores or other sales tax revenue generating companies to the City. c) Consider installing metered parking as a revenue source.
F3
Benicia already has reduced some services and staffing levels but this has not solved the problem. RESPONSE TO FINDING 3 The respondent agrees with the finding.
Related Recommendations (1)
R3
Benicia City Council direct City departments to take measures within the next fiscal year to reduce expenditures as follows: a) City financial administration perform a cost/benefit analysis on services to recommend to City Council could be reduced or eliminated (e.g., parks and recreational services, library hours, or extending public works maintenance schedules). b) City administrators review staffing models to find areas to cut or to outsource. c) City Council direct appropriate agencies to reduce expenses by deferring and/or reducing raises and consider other means of compensation.
F4
Benicia did not project enough funds for budgeted activities into the future, such as creating a five-year plan. RESPONSE TO FINDING 4 The respondent partially disagrees with the finding. The City has regularly produced long-term financial forecasts projecting revenue and expense in periods of five or ten years. The forecasts consistently identified a budget deficit in outer years of the forecasts, but the deficits were not always realized due to availability of one-time funds to cover the variances.
Related Recommendations (1)
R4
City administrators continue with plans to prepare budget projections at least five years into the future and submit timely reports, including projections, to the City Council.