Capitola City Council hold first budget hearing, aims to adopt budget by June 26

CAPITOLA, Calif. (KION-TV) - On Thursday night, Capitola City Council held their first budget hearing for the upcoming fiscal year at a special meeting.

While Capitola's current budget is balanced, financial forecasts indicate it will start to become unbalanced two years from now, mostly due to unpredictable costs from CalPers.

Some of the key revenue sources include new measures like Measures Y, Q, and S.

The city seeing an increase in revenue of about $1.6 million for the general fund, but also a similar increase in expenditures, mainly from personnel costs.

Additional budget hearings are expected over the next few weeks. The city is aiming to adopt the budget by June 26th.